10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

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

For the quarterly period ended June 30, 2020

OR

[  ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from __________to__________

Commission File No. 001-37707

THE PECK COMPANY HOLDINGS, INC.

(Exact name of registrant as specified in its charter)

Delaware	47-2150172
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification Number)
4050 Williston Road, #511 South Burlington, Vermont	05403
(Address of Principal Executive Offices)	(Zip Code)

(802) 658-3378

(Registrant’s telephone number)

N/A

(Former name or former address, if changed since last report)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, $0.0001 par value	PECK	Nasdaq Capital Market

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such requirements for the past 90 days. YES [X] NO [  ]

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). YES [X] NO [  ]

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

Large accelerated filer	[  ]	Accelerated filer	[  ]
Non-accelerated filer	[X]	Smaller reporting company	[X]
		Emerging growth company	[X]

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

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

YES [  ] NO [X]

The number of shares of the registrant’s common stock outstanding as of August 13, 2020 was 5,298,159.

THE PECK COMPANY HOLDINGS, INC.

Form 10-Q

Table of Contents

Part I. Financial Information
Item 1. Financial Statements		3
	Condensed Consolidated Balance Sheets (Unaudited)	3
	Condensed Consolidated Statements of Operations (Unaudited)	4
	Condensed Consolidated Statements of Changes in Stockholders’ Equity (Unaudited)	5
	Condensed Consolidated Statements of Cash Flows (Unaudited)	6
	Notes to Condensed Consolidated Financial Statements (Unaudited)	7
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations		21
	Forward Looking Statements	21
	Business Introduction / Overview	21
	Critical Accounting Policies and Estimates	22
	Results of Operations	23
	Liquidity and Capital Resources	27
	Off-Balance Sheet Arrangements; Commitments and Contractual Obligations	28
Item 3. Quantitative and Qualitative Disclosures about Market Risk		28
Item 4. Controls and Procedures		28
	Evaluation of Disclosure Controls and Procedures	28
	Changes in Internal Control over Financial Reporting	28
Part II – Other Information
Item 1. Legal Proceedings		28
Item 1A. Risk Factors		28
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds		28
Item 3. Default Upon Senior Securities		28
Item 4. Mine Safety Disclosures		28
Item 5. Other Information		28
Item 6. Exhibits		29
SIGNATURES		33

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Part I. Financial Information

Item 1. Financial Statements

The Peck Company Holdings, Inc.

Condensed Consolidated Balance Sheets (Unaudited)

June 30, 2020 and December 31, 2019

	June 30, 2020			December 31, 2019
Assets
Current Assets:
Cash	$	93,187		$	95,930
Accounts receivable, net of allowance		7,132,783			7,294,605
Costs and estimated earnings in excess of billings		641,014			1,272,372
Other current assets		214,039			201,326
Total current assets		8,081,023			8,864,233
Property and equipment:
Building and improvements		672,727			672,727
Vehicles		1,283,364			1,283,364
Tools and equipment		517,602			517,602
Solar arrays		6,386,025			6,386,025
		8,859,718			8,859,718
Less accumulated depreciation		(2,503,031	)		(2,193,007	)
		6,356,687			6,666,711
Other Assets:
Investment in GreenSeed Investors, LLC		5,000,000			-
Investment in Solar Project Partners, LLC		96,052			-
Captive insurance investment		198,105			140,875
Total assets	$	19,731,867		$	15,671,819
Liabilities and Stockholders’ Equity
Current Liabilities:
Accounts payable, includes bank overdrafts of $343,912 and $1,496,695 at June 30, 2020 and December 31, 2019, respectively	$	1,788,232		$	4,274,517
Accrued expenses		170,613			119,211
Billings in excess of costs and estimated earnings on uncompleted contracts		211,470			126,026
Due to stockholders		51,315			342,718
Line of credit		5,225,419			3,185,041
Current portion of deferred compensation		27,880			27,880
Current portion of long-term debt		361,579			426,254
Total current liabilities		7,836,508			8,501,647
Long-term liabilities:
Deferred compensation, net of current portion		65,633			88,883
Deferred tax liability		676,146			1,098,481
Long-term debt, net of current portion		3,302,429			1,966,047
Total liabilities		11,880,716			11,655,058
Commitments and Contingencies (Note 9)
Stockholders’ equity:
Preferred stock – 0.0001 par value 1,000,000 shares authorized, 200,000 and 0 issued and outstanding at June 30, 2020 and December 31, 2019, respectively (Liquidation Value of $5,000,000)		20			-
Common stock – 0.0001 par value 49,000,000 shares authorized, 5,298,159 issued and outstanding as of June 30, 2020 and December 31, 2019, respectively		529			529
Additional paid-in capital-common stock		5,508,388			412,356
Retained earnings		2,342,214			3,603,876
Total Stockholders’ equity		7,851,151			4,016,761
Total liabilities and stockholders’ equity	$	19,731,867		$	15,671,819

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements

3

The Peck Company Holdings, Inc.

Condensed Consolidated Statements of Operations (Unaudited)

For the three and six months ended June 30, 2020 and 2019

	Three Months ended						Six Months ended
	June 30,						June 30,
	2020			2019			2020			2019
Earned revenue	$	2,770,226		$	6,278,113		$	6,754,906		$	10,128,590
Cost of earned revenue		2,765,944			4,574,295			6,434,111			7,537,745
Gross profit		4,282			1,703,818			320,795			2,590,845
Warehousing and other operating expenses		183,514			533,304			376,456			740,811
General and administrative expenses		863,662			755,981			1,481,410			1,013,690
Total operating expenses		1,047,176			1,289,285			1,857,866			1,754,501
Operating income		(1,042,894	)		414,533			(1,537,071	)		836,344
Other expenses
Interest expense		(65,410	)		(58,887	)		(146,176	)		(103,546	)
Income before income taxes		(1,108,304	)		355,646			(1,683,247	)		732,798
(Benefit) provision for income taxes		(279,274	)		1,506,362			(421,585	)		1,506,862
Net loss	$	(829,030	)	$	(1,150,716	)	$	(1,261,662	)	$	(774,064	)
Net loss per share:
Weighted average shares of common stock outstanding
Basic and diluted		5,298,159			3,480,676			5,298,159			3,356,916
Basic and diluted	$	(0.16	)	$	(0.33	)	$	(0.24	)	$	(0.23	)

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

4

The Peck Company Holdings, Inc.

Condensed Consolidated Statement of Changes in Stockholders’ Equity (Unaudited)

For the three and six months ended June 30, 2020 and 2019

	Preferred Stock				Common Stock				Additional Paid-In		Retained
	Shares		Amounts		Shares		Amounts		Capital		Earnings			Total
Balance as of January 1, 2020		-	$	-		5,298,159	$	529	$	412,356	$	3,603,876		$	4,016,761
Net Loss												(432,632	)		(432,632	)
Balance as of, March 31, 2020		-		-		5,298,159		529		412,356		3,171,244			3,584,129
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
Net Loss												(829,030	)		(829,030	)
Balance as of June 30, 2020		200,000	$	20		5,298,159	$	529	$	5,508,388	$	2,342,214		$	7,851,151

The Peck Company Holdings, Inc.

Condensed Consolidated Statement of Changes in Stockholders’ Equity (Unaudited)

For the three and six months ended June 30, 2020 and 2019

	Common Stock				Additional Paid-In			Retained
	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 stockholders in 2019 prior to June 20, 2019		-		-		-			(190,199	)		(190,199	)
Net income		-		-		-			376,652			376,652
Ending Balance, March 31, 2019		3,234,501		323		552,630			4,704,538			5,257,491
Cash distributions to stockholders in 2019 prior to June 20, 2019		-		-		-			(296,215	)		(296,215	)
Conversion of Rights to common shares		419,450		42		-			-			42
Combination with Peck Electric Co.		1,820,744		182		(129,100	)		-			(129,100	)
Net loss		-		-		-			(1,150,716	)		(1,150,716	)
Ending Balance, June 30, 2019		5,474,695	$	547	$	423,530		$	3,257,607		$	3,681,684

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

5

The Peck Company Holdings, Inc.

Condensed Consolidated Statements of Cash Flows (Unaudited)

For the Six Months Ended June 30, 2020 and 2019

	2020			2019
Cash flows from operating activities
Net loss	$	(1,261,662	)	$	(774,064	)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation		310,024			311,053
Deferred finance charge amortization		3,070			-
Deferred tax (benefit) provision		(422,335	)		1,506,362
Changes in operating assets and liabilities:
Accounts receivable		161,822			(2,326,492	)
Other current assets		(12,713	)		-
Costs and estimated earnings in excess of billings		631,358			(884,656	)
Accounts payable		(2,486,285	)		1,001,627
Accrued expenses		51,402			12,918
Billings in excess of costs and estimated earnings on uncompleted contracts		85,444			540,166
Deferred compensation		(23,250	)		(1,376	)
Net cash used in operating activities		(2,963,125	)		(626,462	)
Cash flows from investing activities:
Purchase of solar arrays and equipment		-			(33,339	)
Investment costs		-			(128,876	)
Cash surrender value of life insurance		-			(733	)
Investment in captive insurance		(57,230	)		(58,215	)
Net cash used in investing activities		(57,230	)		(221,163	)
Cash flows from financing activities:
Net borrowings on line of credit		2,550,478			581,734
Payments of line of credit		(510,100	)		-
Proceeds from long-term debt		1,487,624			-
Payments of long-term debt		(218,987	)		(222,822	)
Payments to stockholders		(291,403	)		-
Due to stockholders		-			421,070
Stockholder distributions paid		-			(219,600	)
Net cash provided by financing activities		3,017,612			560,382
Net decrease in cash		(2,743	)		(287,243	)
Cash, beginning of period		95,930			313,217
Cash, end of period	$	93,187		$	25,974
Supplemental disclosure of cash flow information
Cash paid during the year for:
Interest	$	139,241		$	103,546
Income taxes		366			250
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		$	-
Vehicle purchased and financed	$	-		$	31,397
Accrued S corporation distributions which have not been paid		-		$	266,814

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements

6

The Peck Company Holding, Inc.

Notes to Condensed Consolidated Financial Statements

Note 1. SUMMARY OF OPERATIONS AND SIGNIFICANT ACCOUNTING POLICIES

a) Organization

The Peck Company 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 South Burlington, Vermont.

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, 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.” and the symbol for its Common Stock traded on Nasdaq became “PECK”. Unless the context otherwise requires, “we,” “us,” “our,” “Peck Company” and the “Company” refer to the combined company.

b) Basis of Presentation

The accompanying unaudited condensed financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 8 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring adjustments) considered necessary for a fair presentation have been included. Operating results for the three and six months ended June 30, 2020 are not necessarily indicative of the results that may be expected for the year ending December 31, 2020 or any other period. The accompanying financial statements should be read in conjunction with the Company’s audited financial statements and related notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2019.

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c) Revenue Recognition

1) Revenue Recognition Standard

In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers (Topic 606). The ASU and all subsequently issued clarifying ASUs replaced most existing revenue recognition guidance in U.S. GAAP. The ASU also required expanded disclosures relating to the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. The Company adopted the new standard in the fourth quarter 2019, effective January 1, 2019, the first day of the Company’s fiscal year, using the modified retrospective method.

As part of the adoption of the ASU, the Company elected to use the following transition practical expedients: (i) completed contracts that begin and end in the same annual reporting period have not been restated; (ii) the Company used the known transaction price for completed contracts; (iii) to exclude disclosures of transaction prices allocated to remaining performance obligations when the Company expects to recognize such revenue for all periods prior to the date of initial application of the ASU; and (iv) the Company has reflected the aggregate of all contract modifications that occurred prior to the date of initial application when identifying the satisfied and unsatisfied performance obligations, determining the transaction price, and allocating the transaction price.

The majority of the Company’s revenue is recognized over time based on the percentage of completion method with cost inputs. Revenue recognized over time primarily consists of performance obligations that are satisfied within one year or less. The majority of the Company’s revenue arrangements generally consist of a single performance obligation to transfer promised goods or services

2) 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 accurate 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 June 30, 2020, 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).

8

Operation and Maintenance and Other Miscellaneous Services

Revenue for time and materials contracts is recognized as the service is provided.

3) 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 three and six months ended June 30:

	Three Months Ended June 30,				Six Months Ended June 30,
	2020		2019		2020		2019
Performance obligations satisfied over time
Solar	$	2,092,228	$	4,756,009	$	5,322,072	$	7,207,725
Electric		482,566		1,234,317		974,206		2,367,423
Data and Network		195,432		287,787		458,628		553,442
Total	$	2,770,226	$	6,278,113	$	6,754,906	$	10,128,590

During the periods ended June 30, 2020 and 2019, there was no revenue recognized based on the satisfaction of performance obligation at a point in time.

4) 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.

5) 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.

6) Warranties

The Company generally provides limited warranties 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.

e) Accounts Receivable

Accounts receivable are recorded when invoices are issued and presented on the condensed balance sheet net of the allowance for doubtful accounts. The allowance, which was $84,000 at June 30, 2020 and 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.

9

f) 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 three and six months ended June 30, 2020 and 2019, respectively.

g) 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:

Buildings and improvements	39 years
Vehicles	3-5 years
Tools and equipment	3-7 years
Solar arrays	20 years

Total depreciation expense for the three months ended June 30, 2020 and June 30, 2019 was $155,012 and $160,570, respectively. Total depreciation expense for the six months ended June 30, 2020 and June 30, 2019 was $310,024 and $311,053, 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.

h) 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.

10

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.

i) 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 June 30, 2020 and December 31, 2019.

j) 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 limit of up to $250,000 per financial institution. The differences between book and bank balances are outstanding checks and deposits in transit. At June 30, 2020, the uninsured balances were immaterial.

k) Income Taxes

Through June 20, 2019 (the date of the closing of the Exchange Agreement) 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. The provision for income taxes for former Peck Electric was primarily for Vermont minimum taxes. As of the date of the completion of the Exchange Agreement, 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.

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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l) Use of Estimates

The preparation of financial statements in conformity with U.S. GAAP 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, specifically percentage-of-completion. Actual results could differ from those estimates.

m) 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 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. ASU 2016-02 was recently delayed for emerging growth companies that elected to adopt new accounting standards on the adoption date required for private companies and will be effective for the Company’s annual reporting period in 2022 and interim periods beginning first quarter of 2023. The Company is evaluating the impact ASU 2016-02 will have on its financial statements and associated 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 2022 annual reporting period and interim periods beginning first quarter of 2023. The Company is evaluating the impact of ASU 2016-13 will have on its 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 guidance is effective January 1, 2021 with early adoption permitted.

n) 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 $21,547 of deferred financing costs for the year ended December 31, 2019 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 $1,535 for the three months ended June 30, 2020 and $0 for the three months ended June 30, 2019. Amortization expense associated with deferred financing costs, which is included in interest expense, totaled $3,070 for the six months ended June 30, 2020 and $0 for the six months ended June 30, 2019. 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 $413,032 of deferred financing costs that was recorded to additional paid in capital for the year ended December 31, 2019.

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o) 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 and cash equivalents, 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 credit facilities approximate their fair values.

The earnout provision of the Share Exchange is considered a Level 3 measurement. Given that the probability of such provisions being achieved is highly unlikely, no value was assigned to the earnout provision.

Note 2. EXCHANGE AGREEMENT/REVERSE MERGER AND RECAPITALIZATION

As discussed in Note 1, on June 20, 2019, the Company consummated the Reverse Merger and Recapitalization pursuant to the Exchange Agreement between Jensyn and Peck Electric Co. The materials actions arising from the agreement are outlined below:

a) Exchange of Shares

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.

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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’s Common Stock 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:

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

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

In the event that the earnout provisions of Exchange Agreement are deemed to have been met by June 30, 2020, the end of the Earnout Period, then the Company shall 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.” Earnout provision will be met in the event that (a) the Company’s Adjusted EBITDA for the twelve (12) month period commencing on the first full month that is after the Closing Date (the “Earnout Period”) is $5,000,000 or more (the “Adjusted EBITDA Target) or (b) the closing Stock Price is $12.00 or more after the Closing Date (the “Stock Price Target”) and prior to the end of the Earnout Period. The Company has requested a legal opinion to determine if any of the earnout provisions were met as of June 30, 2020.

c) Issuance of Additional Shares and Forfeiture of Sponsor Shares

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 have agreed to forfeit and cancel 281,758 shares of Common Stock. As of December 31, 2019, 257,799 shares of Common Stock were forfeited and new shares will be issued if the earnout provisions of Exchange Agreement are deemed to have been 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 June 30, 2020. The Company has requested a legal opinion to determine if any of the earnout provisions were met as of June 30, 2020.

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Note 3. 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 April 22, 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.

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. 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 June 30, 2020, the equity investment for GSI and SPP was $5,000,000 and $96,052, respectively. No net appreciation or depreciation in fair value of the investments was recorded during the three and six month periods ended June 30, 2020, as there were no observable price changes.

Note 4. LIQUIDITY AND FINANCIAL CONDITION

For the six months ended June 30, 2020, the Company experienced a net operating loss and negative cash flow from operations. At June 30, 2020, the Company had balances of cash of $93,187, working capital of $244,515 and total stockholders’ equity of $7,851,151. To date, the Company has relied predominantly on operating cash flow and borrowings from its credit facilities and long-term debt to fund its operations.

On April 24, 2020, the Company received a loan under the CARES Act Payroll Protection Program (“PPP”) of $1,487,624. Proceeds from the loan 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 forgiveness amount allows for not more than 40% of the forgiveness to be for non-payroll items and is subject to reduction if employees are terminated or wages are reduced. The remaining unforgiven amount of the loan bears interest at 1% per annum and matures on April 24, 2025. Initial principal payments are deferred for the first ten months; however, interest still accrues during this time. There are no collateral requirements or prepayment penalties associated with the loan.

Due to the impact of the COVID-19 pandemic, during the period covered by the Report the Company had several current projects delayed and the commencement of certain future projects were unknown as of the date of this filing. All projects are anticipated to begin promptly once the Vermont State of Emergency expires. The current State of Emergency is scheduled to end on August 15, 2020. However, as the Company does support and maintain critical infrastructure, several projects were deemed essential and allowed to continue.

Under the terms of the Company’s 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.

The Company believes its current cash on hand including the proceeds received under the PPP loan, 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.

Note 5. ACCOUNTS RECEIVABLE

Accounts receivable consist of:

	June 30, 2020			December 31, 2019
Accounts receivable - contracts in progress	$	7,105,561		$	7,190,412
Accounts receivable - retainage		111,222			188,193
		7,216,783			7,378,605
Allowance for doubtful accounts		(84,000	)		(84,000	)
Total	$	7,132,783		$	7,294,605

Bad debt expense was $0 for June 30, 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 June 30, 2020 and December 31, 2019:

	June 30, 2020		December 31, 2019
Costs in excess of billings	$	641,014	$	1,272,372
Unbilled receivables		-		206,213
Retainage		111,222		188,193
	$	752,236	$	1,666,778

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 June 30, 2020 will be billed and collected within one year. Contract liabilities were as follows at June 30, 2020 and December 31, 2019:

	June 30, 2020		December 31, 2019
Billings in excess of costs	$	211,470	$	126,026

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Note 6. CONTRACTS IN PROGRESS

Information with respect to contracts in progress is as follows:

	June 30, 2020			December 31, 2019
Expenditures to date on uncompleted contracts	$	2,836,714		$	4,699,855
Estimated earnings thereon		898,513			1,409,060
		3,735,227			6,108,915
Less billings to date		(3,095,863	)		(5,168,782	)
		639,364			940,133
Plus under billings remaining on contracts 100% complete		209,820			206,213
Total	$	429,544		$	1,146,346

Included in accompanying balance sheets under the following captions:

	June 30, 2020			December 31, 2019
Cost and estimated earnings in excess of billings	$	641,014		$	1,272,372
Billings in excess of costs and estimated earnings on uncompleted contracts		(211,470	)		(126,026	)
	$	429,544		$	1,146,346

Note 7. LONG-TERM DEBT

A summary of long-term debt is as follows:

	June 30, 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.	$	703,464		$	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.		83,370			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.		260,457			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.		227,878			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.		450,799			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.		95,396			110,413
NBT Bank, National Association, 1.0% interest rate, payable in monthly installments including interest beginning September 2021, through August 2026, issued through the CARES Act Payroll Protection Program.		1,487,624			-
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.		286,071			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 5/20 – 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.		85,882			98,033
		3,680,941			2,412,304
Less current portion		(361,579	)		(426,254	)
		3,319,362			1,986,050
Less debt issuance costs		(16,933	)		(20,003	)
	$	3,302,429		$	1,966,047

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Maturities of long-term debt are as follows:

Year ending December 31:	Amount
Remainder of 2020	$	207,267
2021		404,619
2022		600,960
2023		561,413
2024		515,958
2025 and thereafter		1,390,724
	$	3,680,941

Note 8. 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 with a maturity date of September 2020. The balance outstanding was $5,225,419 and $2,675,041 at June 30, 2020 and December 31, 2019, respectively Borrowing is based on 80% of eligible accounts receivable. The line is secured by all business assets and it 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 and are in effect beginning September 2020.

The Company has a line of credit with NBT Bank with a limit of $2,000,000 to fund the development of certain solar arrays. The line has a variable interest rate based on the Wall Street Journal Prime rate, currently 4.75%. The maturity date is September 2020.There were no borrowings at June 30, 2020 and the balance was $510,100 at December 31, 2019. 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 and are in effect beginning September 2020.

Note 9. 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 leases have a combined annual rent of $45,832.

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 $5,000 and $128 for the three months ended June 30, 2020 and 2019, respectively. Total rent expense for all of the non-cancelable leases above were $17,030 and $26,128 for the six months ended June 30, 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 $28,628 and $36,386 for the three months ended June 30, 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 $116,254 and $80,509 for the six months ended June 30, 2020 and 2019, respectively.

Future minimum lease payments required under all of the non-cancelable operating leases are as follows:

Year ending December 31:	Amount
Remainder of 2020	$	50,672
2021		54,201
2022		35,236
2023		35,371
2024		35,508
2025		35,231
Thereafter		448,546
	$	694,765

Note 10. 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. During the three and six months ended June 30, 2020 and 2019, the Company incurred the following union assessments.

	Three Months Ended June 30,				Six Months Ended June 30,
	2020		2019		2020		2019
Pension fund	$	67,676	$	64,816	$	140,846	$	146,257
Welfare fund		152,234		198,668		366,263		453,982
National employees benefit fund		15,235		18,973		35,753		44,587
Joint apprenticeship and training committee		2,369		2,764		5,210		6,452
401(k) matching		19,502		8,097		19,502		16,832
Total	$	257,016	$	293,318	$	567,574	$	668,110

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Note 11. 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).

The provision for income taxes for the six months ending June 30, 2020 and 2019 consists of the following:

	June 30, 2020			June 30, 2019
Current
Federal	$	-		$	-
State		750			0
Total current		750			0
Deferred
Federal		(320,108	)		1,141,389
State		(102,227	)		364,973
Total deferred tax (asset) liability	$	(422,335	)		1,506,362
(Benefit) provision for Income Taxes	$	(421,585	)	$	1,506,362

The Company’s total deferred tax assets and liabilities at June 30, 2020 and December 31, 2019 are as follows:

	June 30, 2020			December 31, 2019
Deferred tax assets (liabilities)
Accruals and reserves	$	23,281		$	4,157
Net operating loss		776,870			421,940
Total deferred tax assets		800,151			426,097
Property and equipment		(1,476,297	)		(1,524,578	)
Total deferred tax liabilities		(1,476,297	)		(1,524,578	)
Net deferred tax asset (liabilities)	$	(676,146	)	$	(1,098,481	)

Reconciliation between the effective tax on income from operations and the statutory tax rate is as follows:

	Three Months Ended June 30,						Six Months Ended June 30,
	2020			2019			2020			2019
Income tax (benefit) expense at federal statutory rate	$	(232,744	)	$	49,341		$	(353,482	)	$	153,888
Federal taxes on period Company was a flow through entity					(49,341	)		-			(153,888	)
Permanent differences		11,107			-			23,435
Deferred tax expense recorded upon conversion to C corp		-			1,506,362			-			1,506,362
Other adjustments		19,101			-			19,101			-
State and local taxes net of federal benefit		(76,738	)		-			(110,639	)		500
Total	$	(279,274	)	$	1,506,362		$	(421,585	)	$	1,506,862

Note 12. 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 $174,891 and $117,528 for the years ended December 31, 2019 and 2018, 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.

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Summary financial information on NCL as of September 30, 2019 is:

Total assets	$	68,741,297
Total liabilities	$	34,086,013
Comprehensive income	$	5,762,011

NCL’s fiscal year end is September 30, 2019.

	June 30, 2020		December 31, 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 investment	$	198,105	$	140,875

Note 13. RELATED PARTY TRANSACTIONS

In 2014, the minority stockholders of Peck Electric Co., who sold the building that the Company occupies, lent the proceeds to the majority stockholders of Peck Electric Co. who contributed $400,000 of the net proceeds as paid in capital. At June 30, 2020 and December 31, 2020, the amount owed of $100,000 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 June 30, 2020 and December 31, 2019, the amounts 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 stockholder loaned $286,964 and $295,299 to the Company to help with cash flow needs and the amount is included in the “due to stockholders” at June 30, 2020 and December 31, 2019, respectively.

The Company was an S-corporation through June 20, 2019 and as a result, the taxable income of the Company is reported on the owner’s tax returns and they are taxed individually. As a result, the Company has accrued a distribution for taxes of $266,814 at June 30, 2020 and December 31, 2019, respectively, to the owners 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 June 30, 2020 and December 31, 2019:

	June 30, 2020		December 31, 2019
Due to stockholders consists of unsecured notes to stockholders with interest at the mid-term AFR rate (2.08% at June 30, 2020).	$	51,315	$	342,718

Note 14. 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 $93,513 at June 30, 2020. 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 June 30, 2020 and December 31, 2019 and recorded in the statement of operations when incurred.

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Note 15. 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 Reverse Merger and Recapitalization, the Company has retrospectively adjusted the weighted average of shares of common stock outstanding prior to June 20, 2019 by multiplying them by the exchange ratio used to determine the number of shares of common stock into which they converted.

	Three Months Ended June 30,						Six Months Ended June 30,
	2020			2019			2020			2019
Numerator:
Net Income (loss)	$	(829,030	)	$	(1,150,716	)	$	(1,261,662	)	$	(774,064	)
Denominator:
Weighted average shares outstanding:
Basic		5,298,159			3,480,676			5,298,159			3,356,916
Diluted		5,298,159			3,480,676			5,298,159			3,356,916
Basic income (loss) per share	$	(0.16	)	$	(0.33	)	$	(0.24	)	$	(0.23	)
Diluted income (loss) per share	$	(0.16	)	$	(0.33	)	$	(0.24	)	$	(0.23	)

The Company has contingent share arrangements and warrants arising from the Reverse Merger and Recapitalization and Jensyn’s IPO as 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. Below is a schedule of the potential share issuances arising from these contingencies that were excluded from the calculations above:

	Three Months Ended June 30,				Six Months Ended June 30,
	2020		2019		2020		2019
Earnout provision, includes new shares of common stock to be issued to former Peck Electric Co. shareholders		898,473		-		898,473		-
Earnout provision, includes new shares of Common Stock that may be issued to Exit Strategy		11,231		11,231		11,231		11,231
Earnout provision, including new shares of Common Stock that may be issued to holders of forfeited and canceled shares		257,799		257,799		257,799		257,799
Option to purchase Common Stock, from Jensyn’s IPO		429,000		429,000		429,000		429,000
Warrants to purchase Common Stock, from Jensyn’s IPO		2,292,250		2,292,250		2,292,250		2,292,250
Warrants to purchase Common Stock, from Solar Project Partners, LLC. Exchange and Subscription Agreement		275,000		-		275,000		-
Conversion of Preferred Stock to Common Stock from GreenSeed Investors, LLC Exchange and Subscription Agreement		200,000		-		200,000		-

Note 16. PREFERRED STOCK

The Company has authorized and designated 1,000,000 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 one share 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.

Note 17. SUBSEQUENT EVENTS

The Company entered into a definitive Agreement and Plan of Merger with Sunworks, Inc. on August 10, 2020. The transaction is subject to customary regulatory approvals and approval by both company’s shareholders. Management expects the transaction to be closed in the fourth quarter of 2020.

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

The following discussion and analysis of our financial condition and results of operations should be read in conjunction with our unaudited condensed consolidated financial statements as of and for the three and six months ended June 30, 2020 and June 30, 2019 and related notes included in Part 1, Item 1 of this Quarterly Report on Form 10-Q. The following discussion and analysis should also be read together with our audited consolidated financial statements and related notes for the year ended December 31, 2019.

Forward-Looking Statements

This discussion and analysis contains forward-looking statements about our plans and expectations of what may happen in the future. Forward-looking statements are based on a number of assumptions and estimates that are inherently subject to significant risks and uncertainties, and our actual results could differ materially from the results anticipated by our forward-looking statements. Our future results and financial condition may also differ materially from those that we currently anticipate as a result of the factors described in the sections entitled “Risk Factors” in the filings that we make with the U.S. Securities and Exchange Commission (the “SEC”). Throughout this section, unless otherwise noted, “we,” “us,” “our” and the “Company” refer to The Peck Company Holdings, Inc.

Business Introduction / Overview

The Peck Company Holdings, Inc., the principal office of which is located in South Burlington, Vermont, is one of the largest commercial solar engineering, procurement and construction (“EPC”) companies in the country and is expanding across the Northeastern United States (“U.S.”). The Company is a second-generation family business founded under the name Peck Electric Co. (“Peck Electric”) in 1972 as a traditional electrical contractor. The Company’s core values are to align people, purpose, and profitability, and since taking leadership in 1994, Jeffrey Peck, the Company’s Chief Executive Officer, has applied such core values to expand into the solar industry. Today, the Company is guided by the mission to facilitate the reduction of carbon emissions through the expansion of clean, renewable energy and we believe that leveraging such core values to deploy resources toward profitable business is the only sustainable strategy to achieve these objectives.

The world recognizes the need to transition to a reliable, renewable energy grid in the next 50 years. Vermont and Hawaii are leading the way in the U.S. with renewable energy goals of 75% by 2032 and 100% by 2045, respectively. California committed to 100% carbon-free energy by 2045. The majority of the other states in the U.S. also have renewable energy goals regardless of current Federal solar policy. We are a member of Renewable Energy Vermont, an organization that advocates for clean, practical and renewable solar energy. The Company intends to use near-term incentives to take advantage of long-term, sustainable energy transformation with a commitment to the environment and to its shareholders. Our triple bottom line, which is geared towards people, environment, and profit, has always been our guide since we began installing renewable energy and we intend that it remain our guide over the next 50 years as we construct our energy future.

After installing more than 125 megawatts of solar energy, we believe that we are well-positioned for what we believe to be the coming transformation to an all renewable energy economy. As a result of the completion of our business combination transaction with Jensyn Acquisition Corp. (“Jensyn”) on June 20, 2019, pursuant to which we acquired Peck Electric Co. (the “Reverse Merger and Recapitalization”), we have now opened our family company to the public market as part of our strategic growth plan. We are expanding across the Northeastern U.S. to serve the fast-growing demand for clean renewable energy. We are open to partnering with others to accelerate our growth process, and we are expanding our portfolio of company-owned solar arrays to establish recurring revenue streams for many years to come. We have established a leading presence in the market after five decades of successfully serving our customers, and we are now ready for new opportunities and the next five decades of success.

We have a three-pronged growth strategy that includes (1) organic expansion across the Northeastern United States, (2) conducting accretive merger and acquisition transactions to expand geographically, and (3) investing into company-owned solar assets.

Equity and Ownership Structure

On June 20, 2019, Jensyn consummated the Reverse Merger and Recapitalization, which resulted in the acquisition of 100% of the issued and outstanding equity securities of Peck Electric by Jensyn, and in Peck Electric becoming a wholly-owned subsidiary of Jensyn. Jensyn was originally incorporated as a special purpose acquisition company, formed for the purpose of entering into a merger, share exchange, asset acquisition, stock purchase, recapitalization, reorganization or other similar Recapitalization. Simultaneously with the Reverse Merger and Recapitalization, we changed our name to “The Peck Company Holdings, Inc.” We conduct all of our business operations exclusively through our wholly-owned subsidiary, Peck Electric. Unless the context otherwise requires, “we,” “us,” “our” and the “Company” refers to The Peck Company Holdings, Inc. and its subsidiary after June 20, 2019, and “Peck Electric” refers to the business of Peck Electric before June 20, 2019. Upon closing of the Reverse Merger and Recapitalization, Peck Electric was deemed the accounting acquirer and takes over the historical information for the Company.

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Critical Accounting Policies

The following discussion and analysis of the Company’s financial condition and results of operations are based upon the Company’s financial statements, which have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”). The preparation of these financial statements requires the Company to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues and expenses, and related disclosures of contingent assets and liabilities.

Use of Estimates

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Significant estimates include estimates used to review the Company’s, impairments and estimations of long-lived assets, revenue recognition utilizing a cost to cost method, allowances for uncollectible accounts, valuation of preferred shares, warrants and the valuation allowance on deferred tax assets. The Company bases its estimates on historical experience and on various other assumptions that are believed to be reasonable in the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates under different assumptions or conditions.

Revenue Recognition

We recognize revenue from contracts with customers under Accounting Standards Codification (“ASC”) Topic 606 (“Topic 606”). Under Topic 606, revenue is recognized when, or as, control of promised goods and services is transferred to customers, and the amount of revenue recognized reflects the consideration to which an entity expects to be entitled in exchange for the goods and services transferred. We primarily recognize revenue over time utilizing the cost-to-cost measure of progress on contracts for specific projects and for certain master service and other service agreements.

Contracts. We derive revenue primarily from construction projects performed under: (i) master and other service agreements, which are typically priced using either a time and materials or a fixed price per unit basis; and (ii) contracts for specific projects requiring the construction and installation of an entire infrastructure system or specified units within an infrastructure system, which are subject to multiple pricing options, including fixed price, unit price, time and materials, or cost plus a markup.

The total contract transaction price and cost estimation processes used for recognizing revenue over time under the cost-to-cost method is based on the professional knowledge and experience of our project managers, engineers and financial professionals. Management reviews estimates of total contract transaction price and total project costs on an ongoing basis. Changes in job performance, job conditions and management’s assessment of expected variable consideration are factors that influence estimates of the total contract transaction price, total costs to complete those contracts and our profit recognition. Changes in these factors could result in revisions to revenue in the period in which the revisions are determined, which could materially affect our consolidated results of operations for that period. Provisions for losses on uncompleted contracts are recorded in the period in which such losses are determined.

Performance Obligations. A performance obligation is a contractual promise to transfer a distinct good or service to a customer and is the unit of account under Topic 606. The transaction price of a contract is allocated to each distinct performance obligation and recognized as revenue when or as the performance obligation is satisfied. 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. Contract amendments and change orders, which are generally not distinct from the existing contract, are typically accounted for as a modification of the existing contract and performance obligation. The vast majority of our performance obligations are completed within one year.

When more than one contract is entered into with a customer on or close to the same date, management evaluates whether those contracts should be combined and accounted for as a single contract as well as whether those contracts should be accounted for as one, or more than one, performance obligation. This evaluation requires significant judgment and is based on the facts and circumstances of the various contracts.

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Union Labor

The Company uses union labor in order to construct and maintain the solar, electric and data work that comprise the core activities of its business. As such, contributions were made by the Company to the National Joint Apprenticeship and Training Committee, the National Electrical Benefit Funds, Union Pension Plans and a union Health and Welfare Fund. Each employee contributes monthly to the International Brotherhood of Electrical Workers (“IBEW”). The Company’s contract with the IBEW expires May 31, 2022.

The Company’s management believes that access to unionized labor provides a unique advantage for growth, because workforce resources can be scaled efficiently utilizing labor unions in other states to meet specific project needs in other states without substantially increasing fixed costs for the Company.

Business Insurance / Captive Insurance Group

In 2018, Peck Electric joined a captive insurance group. The Company’s management believes that belonging to a captive insurance group will stabilize business insurance expenses and will lock in lower rates that are not subject to change from year-to-year and instead are based on the Company’s favorable experience modification rate.

Revenue Drivers

The Company’s business includes the design and construction of solar arrays for its customers. Revenue is recognized for each construction project on a percentage of completion basis. From time to time, the Company constructs solar arrays for its own account or purchases a solar array that must still be constructed. In these instances, no revenue is recognized for the construction of the solar array. In instances where the Company owns the solar array, revenue is recognized for the sale of the electricity generated to third parties. As a result, depending on whether it is building for others or for its own account, the Company’s revenue is subject to significant variation.

RESULTS OF OPERATIONS FOR THE THREE MONTHS ENDED JUNE 30, 2020 COMPARED TO THE THREE MONTHS ENDED JUNE 30, 2019

REVENUE AND COST OF GOODS SOLD

Consolidated revenue for the three months ended June 30, 2020 decreased 56% to $2.8 million, compared to $6.3 million in the corresponding period in 2019. Due to the State of Emergency declared by the State of Vermont, the Company was unable to complete or begin several projects due to the current COVID-19 pandemic. The Company anticipates that these projects will resume or commence once the current State of Emergency expires which is scheduled to occur on August 15, 2020.

Gross profit decreased 100% to $0.0 million for the three months ended June 30, 2020, compared to $1.7 million in the corresponding period in 2019. Gross margin as a percentage of sales was 0.0% for the three months ended June 30, 2020, compared to 27.1% in the corresponding period in 2019. Lower gross margin for the three months ended June 30, 2020 was the result of maintaining our labor force during the uncertainty of the COVID-19 pandemic. The Company was able to secure a loan through the CARES Act Payroll Protection Program to support our workforce.

Total operating expenses for the three months ended June 30, 2020 were $1.0 million, or 38% of sales, compared to $1.3 million in the corresponding period in 2019, or 21% of sales. The decrease in operating expenses for the three months ended June 30, 2020 was the result of the closure of our facilities due to the COVID-19 pandemic.

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Income tax benefit for the three months ended June 30, 2020 was $279,274 compared to the income tax provision for the three months ended June 30, 2019 of $1,506,362. Please the rate reconciliation table included in FN 11 for an explanation of the effective tax rate.

Backlog for the three months ended June 30, 2020 was $26 million, compared to the corresponding period in 2019 of $21.5 million. The Company expects to realize nearly all of the backlog within the next 12 months.

SELLING AND MARKETING EXPENSES

We rely on referrals from customers and on its industry reputation, and therefore has not historically incurred significant selling and marketing expenses.

GENERAL AND ADMINISTRATIVE EXPENSES

Total general and administrative (“G&A”) expenses were $0.9 million for the three months ended June 30, 2020, compared to $0.8 million for the three months ended June 30, 2019. As a percentage of revenue, G&A expenses increased to 31% of revenue in the three months ended June 30, 2020, compared to 12% in the three months ended June 30, 2019. In total dollars, G&A expense increased primarily due to activities related to administrative expenses, consisting of accounting and legal fees, costs of becoming a public company, additional business development and investor/public relations expenses, as well as supporting infrastructure expansion in the three months ended June 30, 2020, compared to the three months ended June 30, 2019.

DEPRECIATION AND AMORTIZATION

Depreciation expenses for the three months ended June 30, 2020 were $155,012, compared to $160,570 for the three months ended June 30, 2019. Depreciation expenses were stable when compared to the three months ended June 30, 2019 as the Company has not had significant capital expenditures for the three months ended June 30, 2020.

OTHER EXPENSES

Warehousing and other operating expenses were $183,514 for the three months ended June 30, 2020, compared to $533,304 for the three months ended June 30, 2020. Warehousing and other operating expenses include Company-owned solar array depreciation and salaries associated with Company-owned solar arrays, general warehousing costs, project-related travel and performance related expenses.

NET INCOME

The net loss for the three months ended June 30, 2020 was $0.8 million, compared to a net loss of $1.2 million for the three months ended June 30, 2019. The net loss was the result of a lack of revenue generated from operations due to the uncertainty of the COVID-19 pandemic and the State of Emergency declared by the State of Vermont.

RESULTS OF OPERATIONS FOR THE SIX MONTHS ENDED JUNE 30, 2020 COMPARED TO THE SIX MONTHS ENDED JUNE 30, 2019

REVENUE AND COST OF GOODS SOLD

Consolidated revenue for the six months ended June 30, 2020 decreased 33% to $6.8 million, compared to $10.1 million in the corresponding period in 2019. Due to the State of Emergency declared by the State of Vermont, the Company was unable to complete or begin several projects due to the current COVID-19 pandemic. The Company anticipates that these projects will resume or commence once the current Vermont State of Emergency expires which is scheduled to occur on August 15, 2020.

Gross profit decreased 88% to $0.3 million for the six months ended June 30, 2020, compared to $2.6 million in the corresponding period in 2019. Gross margin as a percentage of sales was 5% for the six months ended June 30, 2020, compared to 26% in the corresponding period in 2019. Lower gross margin for the six months ended June 30, 2020 was the result of maintaining our labor force during the uncertainty of the COVID-19 pandemic. The Company was able to secure a loan through the CARES Act Payroll Protection Program to support our workforce.

Total operating expenses for the six months ended June 30, 2020 were $1.9 million, or 28% of sales, compared to $1.8 million in the corresponding period in 2019, or 17% of sales. The decrease in operating expenses for the six months ended June 30, 2020 was the result of the closure of our facilities due to the COVID-19 pandemic.

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Income tax benefit for the six months ended June 30, 2020 was $421,585 compared to the income tax provision for the six months ended June 30, 2019 of $1,506,862. Please the rate reconciliation table included in FN 11 for an explanation of the effective tax rate.

Backlog for the six months ended June 30, 2020 was $26 million, compared to the corresponding period in 2019 of $21.5 million. The Company expects to realize nearly all of the backlog within the next 12 months.

SELLING AND MARKETING EXPENSES

We rely on referrals from customers and on its industry reputation, and therefore has not historically incurred significant selling and marketing expenses.

GENERAL AND ADMINISTRATIVE EXPENSES

Total general and administrative (“G&A”) expenses were $1.5 million for the six months ended June 30, 2020, compared to $1.0 million for the six months ended June 30, 2019. As a percentage of revenue, G&A expenses increased to 22% of revenue in the six months ended June 30, 2020, compared to 10% in the six months ended June 30, 2019. In total dollars, G&A expense increased primarily due to activities related to administrative expenses, consisting of accounting and legal fees, costs of operating as a public company, additional business development and investor/public relations expenses, as well as supporting infrastructure expansion in the three months ended June 30, 2020, compared to the three months ended June 30, 2019.

DEPRECIATION AND AMORTIZATION

Depreciation expenses for the six months ended June 30, 2020 were $310,024, compared to $311,053 for the six months ended June 30, 2019. Depreciation expenses were stable when compared to the six months ended June 30, 2019 as the Company has not had significant capital expenditures for the three months ended June 30, 2020.

OTHER EXPENSES

Warehousing and other operating expenses were $376,456 for the six months ended June 30, 2020, compared to $740,811 for the six months ended June 30, 2020. Warehousing and other operating expenses include Company-owned solar array depreciation and salaries associated with Company-owned solar arrays, general warehousing costs, project-related travel and performance related expenses.

NET INCOME

The net loss for the six months ended June 30, 2020 was $1.2 million, compared to a net loss of $0.8 million for the six months ended June 30, 2019. The net loss was the result of a lack of revenue generated from operations due to the uncertainty of the COVID-19 pandemic and the State of Emergency declared by the State of Vermont.

Certain Non-GAAP Measures

We periodically review the following key non-GAAP measures to evaluate our business and trends, measure our performance, prepare financial projections and make strategic decisions.

EBITDA and, Adjusted EBITDA

Included in this presentation are discussions and reconciliations of earnings before interest, income tax and depreciation and amortization (“EBITDA”) and EBITDA adjusted for certain non-cash, non-recurring or non-core expenses (“Adjusted EBITDA”) to net income in accordance with GAAP. Adjusted EBITDA excludes certain non-cash and other expenses, certain legal services costs, professional and consulting fees and expenses, and one-time Merger expenses and certain adjustments. We believe that these non-GAAP measures illustrate the underlying financial and business trends relating to our results of operations and comparability between current and prior periods. We also use these non-GAAP measures to establish and monitor operational goals.

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These non-GAAP measures are not in accordance with, or an alternative to, GAAP and should be considered in addition to, and not as a substitute or superior to, the other measures of financial performance prepared in accordance with GAAP. Using only the non-GAAP financial measures, particularly Adjusted EBITDA, to analyze our performance would have material limitations because such calculations are based on a subjective determination regarding the nature and classification of events and circumstances that investors may find significant. We compensate for these limitations by presenting both the GAAP and non-GAAP measures of our operating results. Although other companies may report measures entitled “Adjusted EBITDA” or similar in nature, numerous methods may exist for calculating a company’s Adjusted EBITDA or similar measures. As a result, the methods that we use to calculate Adjusted EBITDA may differ from the methods used by other companies to calculate their non-GAAP measures.

The reconciliations of EBITDA to net loss, the most directly comparable financial measure calculated and presented in accordance with GAAP, are shown in the table below:

	Three months ended June 30,						Six months ended June 30,
	2020			2019			2020			2019
Net income (loss)	$	(829,040	)	$	(1,150,716	)	$	(1,261,662	)	$	(774,064	)
Depreciation and amortization		155,012			160,570			310,024			311,053
Other expense, net		65,410			58,887			146,176			103,546
Income Tax		(279,274	)		1,503,362			(421,585	)		1,506,862
EBITDA		(887,892	)		572,103			(1,227,047	)		1,147,397
Other costs		-			99,888			-			165,431
Adjusted EBITDA		(887,892	)		671,991			(1,227,047	)		1,312,828
Weighted Average shares outstanding		5,298,159			3,480,676			5,298,159			3,356,916
Adjusted EPS		(0.17	)		0.19			(0.23	)		0.39

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LIQUIDITY AND CAPITAL RESOURCES

The Company had $93,187 in cash at June 30, 2020, as compared to $95,930 at December 31, 2019.

As of June 30, 2020, The Company’s working capital surplus was $244,515, compared to a working capital surplus of $362,586 at December 31, 2019. The Company believes that the aggregate of its existing cash and cash equivalents and working line of credit will be sufficient to meet its operating cash requirements for at least the next 12 months. On April 24, 2020, the Company secured a PPP loan in the amount of $1,487,624 through the CARES Act. The Company anticipates utilizing the forgiveness provisions of the PPP loan to support cashflow needs during the continuing COVID-19 pandemic. The State of Vermont recently relaxed restrictions on outside construction allowing for work crews of up to 25 individuals to operate at a worksite. The Company has implemented the training provided by the Vermont Occupational Safety and Health Administration. The Company has received notice to proceed on several new projects and restarted projects previously delayed.

Due to the impact of the COVID-19 pandemic, the Company had several current projects delayed and the commencement of certain future projects were unknown as of the date of this filing. All projects are anticipated to begin promptly once the State of Emergency declared by the State of Vermont expires. The current State of Emergency is scheduled to expire on August 15, 2020. However, as the Company does support and maintain critical infrastructure, several projects were deemed essential and allowed to continue.

During 2019, the Company entered into an equity line of credit facility with potential to sell at-the-market shares. The Company would receive the cash proceeds of this sale which would help support any cash flow deficiencies that may arise. Under this agreement, Lincoln Park Capital is required to purchase the shares the Company offers in a timely manner. The Company believes the cash proceeds can be raised very quickly in the event there is a liquidity issue. The equity line of credit is in place for $15,000,000. The total number of shares authorized under the Lincoln Park Capital Purchase Agreement total 3,024,194 which would allow the Company to maximize the equity line of credit within 10 business days. As of August 7, 2020, the closing price per share of Common Stock was $4.36 which would allow the Company to utilize the equity line of credit to generate approximately $13.2 million.

Certain of the Company’s loan agreements contain a clause requiring lender approval for changes to the guarantor under such agreements. If this clause is implicated, such lenders may require outstanding indebtedness to become immediately due.

Cash flow used in operating activities was $2,963,125 for the six months ended June 30, 2020, compared to $626,462 of cash provided by operating activities in the six months ended June 30, 2019. The decrease in cash provided by operating activities was primarily the result of the decrease in accounts payable of approximately 2.5 million and the net loss of $1.5 million for the six months ended June 30, 2020.

Net cash used in investing activities was $57,230 for the three months ended June 30, 2020, compared to $221,163 used in the six months ended June 30, 2019. During the six months ended June 30, 2020, the Company took a conservative approach to investing in property and equipment given the uncertain nature of the current COVID-19 pandemic.

Net cash provided by financing activities was $3,017,612 for the six months ended June 30, 2020 compared to $560,382 used for the six months ended June 30, 2019. Cash provided by financing activities in the six months ended June 30, 2020 consisted of funds received as proceeds from line of credit increase and was partially offset by principal payments for equipment notes and amounts to due to shareholders. In addition, the Company secured financing through the CARES Act in the amount $1.5 million.

27

The Company believes its current cash on hand including the proceeds received under the PPP loan, 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.

Off-Balance Sheet Arrangements

The Company does not have any off-balance sheet arrangements that are reasonably likely to have a current or future effect on its financial condition, revenues, results of operations, liquidity, or capital expenditures.

Item 3. Quantitative and Qualitative Disclosures about Market Risk

As a smaller reporting company, as defined in Rule 12b-2 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), we are not required to provide the information required by this Item.

Item 4. Controls and Procedures

Evaluation of Disclosure Controls and Procedures

Under the supervision and with the participation of our management, including our principal executive officer and principal financial and accounting officer, we conducted an evaluation of the effectiveness of our disclosure controls and procedures as of June 30, 2020, as such term is defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act. Management has determined there is a lack of supervisory review of the financial statement closing process due to limited resources and formal documentation of procedures and controls. This control deficiency constitutes a material weakness in internal control over financial reporting. As a result, our principal executive officer and principal financial and accounting officer have concluded that during the period covered by this report, our disclosure controls and procedures were not effective. We plan to take steps to remedy this material weakness in with the implementation of an “Internal Control-Integrated Framework”

Disclosure controls and procedures are designed to ensure that the information that is required to be disclosed by us in our Exchange Act report is recorded, processed, summarized, and reported within the time periods specified in the SEC’s rules and forms, and that such information is accumulated and communicated to our management, including our principal executive officer and principal financial and accounting officer or persons performing similar functions, as appropriate to allow timely decisions regarding required disclosure.

Changes in Internal Control over Financial Reporting

During the three months ended June 30, 2020, there were no changes in internal control over financial reporting.

PART II – Other Information

Item 1. Legal Proceedings

None.

Item 1A. Risk Factors

As a smaller reporting company, as defined in Rule 12b-2 of the Exchange Act, we are not required to provide the information required by this Item.

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

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”).

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.

Item 3. Default Upon Senior Securities

None.

Item 4. Mine Safety Disclosures

None.

Item 5. Other Information

None.

28

Item 6. Exhibits

Exhibit				Filing
No.	Description	Included	Form	Date
2.1(a)	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
2.1(b)	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
2.2	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
2.3	Share Exchange Agreement by and among Jensyn Acquisition Corp., Oneness Global and the Stockholders of Oneness Global	By Reference	10-Q	August 20, 2018
2.4	Exchange and Subscription Agreement dated as of April 22, 2020 among The Peck Company Holdings, Inc., GreenSeed Investors, LLC and Solar Project Partners, LLC	By Reference	8-K	April 28, 2002
3.1	Amended and Restated Certificate of Incorporation.	By Reference	8-K	March 10, 2016
3.1(a)	Amendment to Amended and Restated Certificate of Incorporation dated March 6, 2018.	By Reference	8-K	March 6, 2018
3.1(b)	Amendment to Amended and Restated Certificate of Incorporation dated June 4, 2018.	By Reference	8-K	June 8, 2018
3.1(c)	Amendment to Amended and Restated Certificate of Incorporation dated August 29, 2018.	By Reference	8-K	September 4, 2018
3.1(d)	Amendment to Amended and Restated Certificate of Incorporation dated January 2, 2019.	By Reference	8-K	January 3, 2019
3.1 (e)	Certificate of Designation, Preferences and Rights of Preferred Stock of The Peck Company Holdings, Inc.	By Reference	8-K	April 28, 2020
3.2	Bylaws.	By Reference	S-1	November 23, 2015

29

4.1	Specimen Unit Certificate.	By Reference	S-1	November 23, 2015
4.2	Specimen Common Stock Certificate.	By Reference	S-1	November 23, 2015
4.3	Specimen Right Certificate.	By Reference	S-1	November 23, 2015
4.4	Specimen Warrant Certificate.	By Reference	S-1	November 23, 2015
4.5	Promissory Note, dated September 17, 2019, issued to NBT Bank, National Association	By Reference	10-Q	November 18, 2019
4.6	Warrant Agreement, dated March 2, 2016, between Jensyn Acquisition Corp. and Continental Stock Transfer & Trust Company.	By Reference	8-K	March 10, 2016
4.7	Unit Purchase Option, dated March 7, 2016, between Jensyn Acquisition Corp. and Chardan Capital Markets, LLC.	By Reference	8-K	March 10, 2016
4.8	Rights Agreement, dated March 2, 2016, between Jensyn Acquisition Corp. and Continental Stock Transfer & Trust Company.	By Reference	8-K	March 10, 2016
4.9	Warrant dated April 22, 2020 issued by The Peck Company Holdings, Inc. to GreenSeed Investors, LLC	By Reference	8-K	April 28, 2020
4.10	Promissory Noted dated January 13, 2020 issued by Peck Electric Co. to NBT Bank, National Association	By Reference	8-K	April 28, 2020
4.11	Paycheck Protection Program Note and Disbursement Authorization dated April 24, 2020 issued by Peck Electric Co. to NBT Bank, N.A	By Reference	8-K	April 28, 2020
10.1	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
10.2	Commercial Security Agreement, dated September 17 2019, between Peck Electric Co. and NBT Bank, National Association	By Reference	10-Q	November 18, 2019
10.3	Commercial Guaranty, dated September 17, 2019	By Reference	10-Q	November 18, 2019
10.4(a)	Letter Agreement, dated March 2, 2016, between Jensyn Acquisition Corp. and Jeffrey Raymond.	By Reference	8-K	March 10, 2016

30

10.4(b)	Letter Agreement, dated March 2, 2016, between Jensyn Acquisition Corp. and Rebecca Irish.	By Reference	8-K	March 10, 2016
10.4(c)	Letter Agreement, dated March 2, 2016, between Jensyn Acquisition Corp. and Joseph Raymond.	By Reference	8-K	March 10, 2016
10.4(d)	Letter Agreement, dated March 2, 2016, between Jensyn Acquisition Corp. and Peter Underwood.	By Reference	8-K	March 10, 2016
10.4(e)	Letter Agreement, dated March 2, 2016, between Jensyn Acquisition Corp. and Philip Politziner.	By Reference	8-K	March 10, 2016
10.4(f)	Letter Agreement, dated March 2, 2016, between Jensyn Acquisition Corp. and Joseph Anastasio.	By Reference	8-K	March 10, 2016
10.4(g)	Letter Agreement, dated March 2, 2016, between Jensyn Acquisition Corp. and Richard C. Cook.	By Reference	8-K	March 10, 2016
10.4(h)	Letter Agreement, dated March 2, 2016, between Jensyn Acquisition Corp. and Jensyn Capital, LLC.	By Reference	8-K	March 10, 2016
10.5	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
10.5(a)	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
10.5(b)	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
10.5(c)	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
10.5(d)	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
10.6	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
10.7	Registration Rights Agreement, dated March 2, 2016, among Jensyn Acquisition Corp. and the Investors identified therein.	By Reference	8-K	March 10, 2016

31

10.8	Form of Indemnity Agreement.	By Reference	S-1	November 23, 2015
10.9	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
10.10	Private Units Purchase Agreement, dated March 2, 2016, between Jensyn Acquisition Corp. and Chardan Capital Markets, LLC.	By Reference	8-K	March 10, 2016
10.11	Private Units Purchase Agreement, dated March 2, 2016, between Jensyn Acquisition Corp. and Jensyn Capital, LLC.	By Reference	8-K	March 10, 2016
10.12	Letter Agreement, dated June 11, 2015, between Jensyn Acquisition Corp. and Corinthian Partners, LLC.	By Reference	S-1	November 23, 2015
10.13	Form of Rights of First Refusal and Corporate Opportunities Agreement.	By Reference	S-1	November 23, 2015
10.14	Joinder Agreement dated November 11, 2016 executed by Stewart Martin.	By Reference	10-K	March 27, 2017
10.15	Form of Guaranty of Funding dated March 7, 2017 issued by Insiders	By Reference	10-K	March 27, 2017
10.16	Letter Agreement dated as of January 31, 2018 among Jensyn Acquisition Corp., Victor Ferreira and Karen Ferreira.	By Reference	10-K	March 29, 2018
10.17	Promissory Note dated March 6, 2018 issued to Jensyn Capital, LLC	By Reference	10-Q	May 21, 2018
10.18	Promissory Note dated June 22, 2018 issued to Jensyn Capital, LLC	By Reference	10-Q	August 20, 2018
10.19	Second Original Discount Promissory Note dated March 7, 2019 issued to Riverside Merchant Partners, LLC	By Reference	8-K	March 14, 2019
10.20	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
10.21	Voting Agreement, dated June 20, 2019, between Peck Company Holdings Inc. and Jeffrey Peck	Herewith
10.22	Business Loan Agreement dated January 13, 2020 between Peck Electric Co. and NBT Bank, National Association	By Reference	8-K	April 28, 2020
10.23	Commercial Guaranty dated January 13, 2020 issued by Jeffrey Peck to NBT Bank, National Association.	By Reference	8-K	April 28, 2020

31.1	Certification of Principal Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
31.2	Certification of Principal Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
32.1	Certification of Principal Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
32.2	Certification of Principal Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

In accordance with SEC Release 33-8238, Exhibits 32.1 and 32.2 are being furnished and not filed.

32

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized on the 13^th day of August, 2020.

THE PECK COMPANY HOLDINGS, 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)

33

EX-10.21

Exhibit 10.21

 

 

 

 

 

 

 

 

EX-31.1

Exhibit 31.1

Certification of Principal Executive Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to

Section 302 of the Sarbanes-Oxley Act of 2002

I, Jeffrey Peck, certify that:

1.	I have reviewed this quarterly report on Form 10-Q of The Peck Company Holdings, Inc.;
2.	Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3.	Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
4.	The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a–15(f) and 15d–15(f)) for the registrant and have:

(a)	Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
(b)	Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
(c)	Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
(d)	Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a)	All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
(b)	Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: August 13, 2020	By:	/s/ Jeffrey Peck
		Jeffrey Peck
		Chief Executive Officer
		(Principal Executive Officer)

EX-31.2

Exhibit 31.2

Certification of Principal Financial Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to

Section 302 of the Sarbanes-Oxley Act of 2002

I, John Sullivan, certify that:

1.	I have reviewed this quarterly report on Form 10-Q of The Peck Company Holdings, Inc.;
2.	Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3.	Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
4.	The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a–15(f) and 15d–15(f)) for the registrant and have:

(a)	Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
(b)	Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
(c)	Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
(d)	Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a)	All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
(b)	Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: August 13, 2020	By:	/s/ John Sullivan
		John Sullivan
		Chief Financial Officer
		(Principal Financial Officer)

EX-32.1

Exhibit 32.1

Certification of Principal Executive Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to

Section 906 of the Sarbanes-Oxley Act of 2002

In connection with the Quarterly Report of The Peck Company Holdings, Inc. (the “Company”) on Form 10-Q for the period ended June 30, 2020, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Jeffrey Peck, Chief Executive Officer of the Company, certify, pursuant to 18 U.S.C. §1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that, to the best of my knowledge:

(1)	The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
(2)	The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date: August 13, 2020	By:	/s/ Jeffrey Peck
		Jeffrey Peck
		Chief Executive Officer
		(Principal Executive Officer)

EX-32.2

Exhibit 32.2

Certification of Principal Financial Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to

Section 906 of the Sarbanes-Oxley Act of 2002

In connection with the Quarterly Report of The Peck Company Holdings, Inc. (the “Company”) on Form 10-Q for the period ended June 30, 2020, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, John Sullivan, Chief Financial Officer of the Company, certify, pursuant to 18 U.S.C. §1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that, to the best of my knowledge:

(1)	The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
(2)	The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date: August 13, 2020	By:	/s/ John Sullivan
		John Sullivan
		Chief Financial Officer
		(Principal Financial Officer)

XML

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2020	Aug. 13, 2020
Cover [Abstract]
Entity Registrant Name	PECK Co HOLDINGS, INC.
Entity Central Index Key	0001634447
Document Type	10-Q
Document Period End Date	Jun. 30, 2020
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business Flag	true
Entity Emerging Growth Company	true
Entity Ex Transition Period	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		5,298,159
Document Fiscal Period Focus	Q2
Document Fiscal Year Focus	2020

XML

Condensed Consolidated Balance Sheets (Unaudited) - USD ($)	Jun. 30, 2020	Dec. 31, 2019
Current Assets:
Cash	$ 93,187	$ 95,930
Accounts receivable, net of allowance	7,132,783	7,294,605
Costs and estimated earnings in excess of billings	641,014	1,272,372
Other current assets	214,039	201,326
Total current assets	8,081,023	8,864,233
Property and equipment:
Building and improvements	672,727	672,727
Vehicles	1,283,364	1,283,364
Tools and equipment	517,602	517,602
Solar arrays	6,386,025	6,386,025
Property plant and equipment, gross	8,859,718	8,859,718
Less accumulated depreciation	(2,503,031)	(2,193,007)
Property plant and equipment, net	6,356,687	6,666,711
Other Assets:
Captive insurance investment	198,105	140,875
Total assets	19,731,867	15,671,819
Current Liabilities:
Accounts payable, includes bank overdrafts of $343,912 and $1,496,695 at June 30, 2020 and December 31, 2019, respectively	1,788,232	4,274,517
Accrued expenses	170,613	119,211
Billings in excess of costs and estimated earnings on uncompleted contracts	211,470	126,026
Due to stockholders	51,315	342,718
Line of credit	5,225,419	3,185,041
Current portion of deferred compensation	27,880	27,880
Current portion of long-term debt	361,579	426,254
Total current liabilities	7,836,508	8,501,647
Long-term liabilities:
Deferred compensation, net of current portion	65,633	88,883
Deferred tax liability	676,146	1,098,481
Long-term debt, net of current portion	3,302,429	1,966,047
Total liabilities	11,880,716	11,655,058
Commitments and Contingencies (Note 9)
Stockholders' equity:
Preferred stock - 0.0001 par value 1,000,000 shares authorized, 200,000 and 0 issued and outstanding at June 30, 2020 and December 31, 2019, respectively	20
Common stock - 0.0001 par value 49,000,000 shares authorized, 5,298,159 issued and outstanding as of June 30, 2020 and December 31, 2019, respectively	529	529
Additional paid-in capital-common stock	5,508,388	412,356
Retained earnings	2,342,214	3,603,876
Total Stockholders' equity	7,851,151	4,016,761
Total liabilities and stockholders' equity	19,731,867	15,671,819
GreenSeed Investors, LLC [Member]
Other Assets:
Investment	5,000,000
Solar Project Partners, LLC [Member]
Other Assets:
Investment	$ 96,052

XML

Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($)	Jun. 30, 2020	Dec. 31, 2019
Statement of Financial Position [Abstract]
Book overdraft	$ 343,912	$ 1,496,695
Preferred stock, par value	$ 0.0001	$ 0.0001
Preferred stock, shares authorized	1,000,000	1,000,000
Preferred stock, shares issued	200,000	0
Preferred stock, shares outstanding	200,000	0
Preferred stock, liquidation	$ 5,000,000	$ 5,000,000
Common stock, par value	$ 0.0001	$ 0.0001
Common stock, shares authorized	49,000,000	49,000,000
Common stock, shares issued	5,298,159	5,298,159
Common stock, shares outstanding	5,298,159	5,298,159

XML

Condensed Consolidated Statements of Operations (Unaudited) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Income Statement [Abstract]
Earned revenue	$ 2,770,226	$ 6,278,113	$ 6,754,906	$ 10,128,590
Cost of earned revenue	2,765,944	4,574,295	6,434,111	7,537,745
Gross profit	4,282	1,703,818	320,795	2,590,845
Warehousing and other operating expenses	183,514	533,304	376,456	740,811
General and administrative expenses	863,662	755,981	1,481,410	1,013,690
Total operating expenses	1,047,176	1,289,285	1,857,866	1,754,501
Operating income	(1,042,894)	414,533	(1,537,071)	836,344
Other expenses
Interest expense	(65,410)	(58,887)	(146,176)	(103,546)
Income before income taxes	(1,108,304)	355,646	(1,683,247)	732,798
(Benefit) provision for income taxes	(279,274)	1,506,362	(421,585)	1,506,862
Net loss	$ (829,030)	$ (1,150,716)	$ (1,261,662)	$ (774,064)
Weighted average shares of common stock outstanding
Basic and diluted	5,298,159	3,480,676	5,298,159	3,356,916
Basic and diluted	$ (0.16)	$ (0.33)	$ (0.24)	$ (0.23)

XML

Condensed Consolidated Statement of Changes in Stockholders' Equity (Unaudited) - USD ($)	Preferred Stock [Member]	Common Stock [Member]	Additional Paid-In Capital [Member]	Retained Earnings [Member]	Total
Balance at Dec. 31, 2018		$ 323	$ 552,630	$ 4,518,085	$ 5,071,038
Balance, Shares at Dec. 31, 2018		3,234,501
Cash distributions to stockholders in 2019 prior to June 20, 2019				(190,199)	(190,199)
Net Income (loss)				376,652	376,652
Balance at Mar. 31, 2019		$ 323	552,630	4,704,538	5,257,491
Balance, Shares at Mar. 31, 2019		3,234,501
Balance at Dec. 31, 2018		$ 323	552,630	4,518,085	5,071,038
Balance, Shares at Dec. 31, 2018		3,234,501
Net Income (loss)					(774,064)
Balance at Jun. 30, 2019		$ 547	423,530	3,257,607	3,681,684
Balance, Shares at Jun. 30, 2019		5,474,695
Balance at Mar. 31, 2019		$ 323	552,630	4,704,538	5,257,491
Balance, Shares at Mar. 31, 2019		3,234,501
Cash distributions to stockholders in 2019 prior to June 20, 2019				(296,215)	(296,215)
Conversion of Rights to common shares		$ 42			42
Conversion of Rights to common shares, shares		419,450
Combination with Peck Electric Co.		$ 182	(129,100)		(129,100)
Combination with Peck Electric Co., shares		1,820,744
Net Income (loss)				(1,150,716)	(1,150,716)
Balance at Jun. 30, 2019		$ 547	423,530	3,257,607	3,681,684
Balance, Shares at Jun. 30, 2019		5,474,695
Balance at Dec. 31, 2019		$ 529	412,356	3,603,876	4,016,761
Balance, Shares at Dec. 31, 2019		5,298,159
Net Income (loss)				(432,632)	(432,632)
Balance at Mar. 31, 2020		$ 529	412,356	3,171,244	3,584,129
Balance, Shares at Mar. 31, 2020		5,298,159
Balance at Dec. 31, 2019		$ 529	412,356	3,603,876	4,016,761
Balance, Shares at Dec. 31, 2019		5,298,159
Net Income (loss)					(1,261,662)
Balance at Jun. 30, 2020	$ 20	$ 529	5,508,388	2,342,214	7,851,151
Balance, Shares at Jun. 30, 2020	200,000	5,298,159
Balance at Mar. 31, 2020		$ 529	412,356	3,171,244	3,584,129
Balance, Shares at Mar. 31, 2020		5,298,159
Investment in Green Seed Investors, LLC	$ 20		4,999,980		5,000,000
Investment in Green Seed Investors, LLC, shares	200,000
Investment in Solar Project Partners, LLC			96,052		96,052
Investment in Solar Project Partners, LLC, shares
Net Income (loss)				(829,030)	(829,030)
Balance at Jun. 30, 2020	$ 20	$ 529	$ 5,508,388	$ 2,342,214	$ 7,851,151
Balance, Shares at Jun. 30, 2020	200,000	5,298,159

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Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)	3 Months Ended				6 Months Ended		12 Months Ended
	Jun. 30, 2020	Mar. 31, 2020	Jun. 30, 2019	Mar. 31, 2019	Jun. 30, 2020	Jun. 30, 2019	Dec. 31, 2019
Cash flows from operating activities
Net loss	$ (829,030)	$ (432,632)	$ (1,150,716)	$ 376,652	$ (1,261,662)	$ (774,064)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation	155,012		160,570		310,024	311,053
Deferred finance charge amortization					3,070
Deferred tax (benefit) provision					(422,335)	1,506,362	$ 1,098,481
Changes in operating assets and liabilities:
Accounts receivable					161,822	(2,326,492)
Other current assets					(12,713)
Costs and estimated earnings in excess of billings					631,358	(884,656)
Accounts payable					(2,486,285)	1,001,627
Accrued expenses					51,402	12,918
Billings in excess of costs and estimated earnings on uncompleted contracts					85,444	540,166
Deferred compensation					(23,250)	(1,376)
Net cash used in operating activities					(2,963,125)	(626,462)
Cash flows from investing activities:
Purchase of solar arrays and equipment						(33,339)
Investment costs						(128,876)
Cash surrender value of life insurance						(733)
Investment in captive insurance					(57,230)	(58,215)
Net cash used in investing activities					(57,230)	(221,163)
Cash flows from financing activities:
Net borrowings on line of credit					2,550,478	581,734
Payments of line of credit					(510,100)
Proceeds from long-term debt					1,487,624
Payments of long-term debt					(218,987)	(222,822)
Payments to stockholders					(291,403)
Due to stockholders						421,070
Stockholder distributions paid						(219,600)
Net cash provided by financing activities					3,017,612	560,382
Net decrease in cash					(2,743)	(287,243)
Cash, beginning of period		$ 95,930		$ 313,217	95,930	313,217	313,217
Cash, end of period	$ 93,187		$ 25,974		93,187	25,974	$ 95,930
Supplemental disclosure of cash flow information
Interest					139,241	103,546
Income taxes					366	250
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
Vehicle purchased and financed						31,397
Accrued S corporation distributions which have not been paid						$ 266,814

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Summary of Operations and Significant Accounting Policies

6 Months Ended

Jun. 30, 2020

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Summary of Operations and Significant Accounting Policies

Note 1. SUMMARY OF OPERATIONS AND SIGNIFICANT ACCOUNTING POLICIES

a) Organization

The Peck Company 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 South Burlington, Vermont.

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, 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.” and the symbol for its Common Stock traded on Nasdaq became “PECK”. Unless the context otherwise requires, “we,” “us,” “our,” “Peck Company” and the “Company” refer to the combined company.

b) Basis of Presentation

The accompanying unaudited condensed financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 8 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring adjustments) considered necessary for a fair presentation have been included. Operating results for the three and six months ended June 30, 2020 are not necessarily indicative of the results that may be expected for the year ending December 31, 2020 or any other period. The accompanying financial statements should be read in conjunction with the Company’s audited financial statements and related notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2019.

c) Revenue Recognition

1) Revenue Recognition Standard

In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers (Topic 606). The ASU and all subsequently issued clarifying ASUs replaced most existing revenue recognition guidance in U.S. GAAP. The ASU also required expanded disclosures relating to the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. The Company adopted the new standard in the fourth quarter 2019, effective January 1, 2019, the first day of the Company’s fiscal year, using the modified retrospective method.

As part of the adoption of the ASU, the Company elected to use the following transition practical expedients: (i) completed contracts that begin and end in the same annual reporting period have not been restated; (ii) the Company used the known transaction price for completed contracts; (iii) to exclude disclosures of transaction prices allocated to remaining performance obligations when the Company expects to recognize such revenue for all periods prior to the date of initial application of the ASU; and (iv) the Company has reflected the aggregate of all contract modifications that occurred prior to the date of initial application when identifying the satisfied and unsatisfied performance obligations, determining the transaction price, and allocating the transaction price.

The majority of the Company’s revenue is recognized over time based on the percentage of completion method with cost inputs. Revenue recognized over time primarily consists of performance obligations that are satisfied within one year or less. The majority of the Company’s revenue arrangements generally consist of a single performance obligation to transfer promised goods or services

2) 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 accurate 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 June 30, 2020, 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.

3) 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 three and six months ended June 30:

	Three Months Ended June 30,				Six Months Ended June 30,
	2020		2019		2020		2019
Performance obligations satisfied over time
Solar	$	2,092,228	$	4,756,009	$	5,322,072	$	7,207,725
Electric		482,566		1,234,317		974,206		2,367,423
Data and Network		195,432		287,787		458,628		553,442
Total	$	2,770,226	$	6,278,113	$	6,754,906	$	10,128,590

During the periods ended June 30, 2020 and 2019, there was no revenue recognized based on the satisfaction of performance obligation at a point in time.

4) 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.

5) 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.

6) Warranties

The Company generally provides limited warranties 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.

e) Accounts Receivable

Accounts receivable are recorded when invoices are issued and presented on the condensed balance sheet net of the allowance for doubtful accounts. The allowance, which was $84,000 at June 30, 2020 and 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.

f) 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 three and six months ended June 30, 2020 and 2019, respectively.

g) 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:

Buildings and improvements	39 years
Vehicles	3-5 years
Tools and equipment	3-7 years
Solar arrays	20 years

Total depreciation expense for the three months ended June 30, 2020 and June 30, 2019 was $155,012 and $160,570, respectively. Total depreciation expense for the six months ended June 30, 2020 and June 30, 2019 was $310,024 and $311,053, 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.

h) 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.

i) 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 June 30, 2020 and December 31, 2019.

j) 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 limit of up to $250,000 per financial institution. The differences between book and bank balances are outstanding checks and deposits in transit. At June 30, 2020, the uninsured balances were immaterial.

k) Income Taxes

Through June 20, 2019 (the date of the closing of the Exchange Agreement) 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. The provision for income taxes for former Peck Electric was primarily for Vermont minimum taxes. As of the date of the completion of the Exchange Agreement, 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.

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.

l) Use of Estimates

The preparation of financial statements in conformity with U.S. GAAP 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, specifically percentage-of-completion. Actual results could differ from those estimates.

m) 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 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. ASU 2016-02 was recently delayed for emerging growth companies that elected to adopt new accounting standards on the adoption date required for private companies and will be effective for the Company’s annual reporting period in 2022 and interim periods beginning first quarter of 2023. The Company is evaluating the impact ASU 2016-02 will have on its financial statements and associated 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 2022 annual reporting period and interim periods beginning first quarter of 2023. The Company is evaluating the impact of ASU 2016-13 will have on its 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 guidance is effective January 1, 2021 with early adoption permitted.

n) 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 $21,547 of deferred financing costs for the year ended December 31, 2019 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 $1,535 for the three months ended June 30, 2020 and $0 for the three months ended June 30, 2019. Amortization expense associated with deferred financing costs, which is included in interest expense, totaled $3,070 for the six months ended June 30, 2020 and $0 for the six months ended June 30, 2019. 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 $413,032 of deferred financing costs that was recorded to additional paid in capital for the year ended December 31, 2019.

o) 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 and cash equivalents, 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 credit facilities approximate their fair values.

The earnout provision of the Share Exchange is considered a Level 3 measurement. Given that the probability of such provisions being achieved is highly unlikely, no value was assigned to the earnout provision.

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Exchange Agreement/Reverse Merger and Recapitalization

6 Months Ended

Jun. 30, 2020

Exchange Agreementreverse Merger And Recapitalization

Exchange Agreement/Reverse Merger and Recapitalization

Note 3. 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”).

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”). At June 30, 2020 and December 31, 2019, the fair value of the investment in GSI was $5,000,000 and $0, respectively. 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. At June 30, 2020 and December 31, 2019, the fair value of the warrants was $96,052 and $0, respectively.

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.

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Exchange and Subscription Agreement

6 Months Ended

Jun. 30, 2020

Exchange And Subscription Agreement

Exchange and Subscription Agreement

Note 3. 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 April 22, 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.

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. 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 June 30, 2020, the equity investment for GSI and SPP was $5,000,000 and $96,052, respectively. No net appreciation or depreciation in fair value of the investments was recorded during the three and six month periods ended June 30, 2020, as there were no observable price changes.

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Liquidity and Financial Condition

6 Months Ended

Jun. 30, 2020

Liquidity And Financial Condition

Liquidity and Financial Condition

Note 4. LIQUIDITY AND FINANCIAL CONDITION

For the six months ended June 30, 2020, the Company experienced a net operating loss and negative cash flow from operations. At June 30, 2020, the Company had balances of cash of $93,187, working capital of $244,515 and total stockholders’ equity of $7,851,151. To date, the Company has relied predominantly on operating cash flow and borrowings from its credit facilities and long-term debt to fund its operations.

On April 24, 2020, the Company received a loan under the CARES Act Payroll Protection Program (“PPP”) of $1,487,624. Proceeds from the loan 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 forgiveness amount allows for not more than 40% of the forgiveness to be for non-payroll items and is subject to reduction if employees are terminated or wages are reduced. The remaining unforgiven amount of the loan bears interest at 1% per annum and matures on April 24, 2025. Initial principal payments are deferred for the first ten months; however, interest still accrues during this time. There are no collateral requirements or prepayment penalties associated with the loan.

Due to the impact of the COVID-19 pandemic, during the period covered by the Report the Company had several current projects delayed and the commencement of certain future projects were unknown as of the date of this filing. All projects are anticipated to begin promptly once the Vermont State of Emergency expires. The current State of Emergency is scheduled to end on August 15, 2020. However, as the Company does support and maintain critical infrastructure, several projects were deemed essential and allowed to continue.

Under the terms of the Company’s 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.

The Company believes its current cash on hand including the proceeds received under the PPP loan, 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.

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Accounts Receivable

6 Months Ended

Jun. 30, 2020

Credit Loss [Abstract]

Accounts Receivable

Note 5. ACCOUNTS RECEIVABLE

Accounts receivable consist of:

	June 30, 2020			December 31, 2019
Accounts receivable - contracts in progress	$	7,105,561		$	7,190,412
Accounts receivable - retainage		111,222			188,193
		7,216,783			7,378,605
Allowance for doubtful accounts		(84,000	)		(84,000	)
Total	$	7,132,783		$	7,294,605

Bad debt expense was $0 for June 30, 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 June 30, 2020 and December 31, 2019:

	June 30, 2020		December 31, 2019
Costs in excess of billings	$	641,014	$	1,272,372
Unbilled receivables		-		206,213
Retainage		111,222		188,193
	$	752,236	$	1,666,778

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 June 30, 2020 will be billed and collected within one year. Contract liabilities were as follows at June 30, 2020 and December 31, 2019:

	June 30, 2020		December 31, 2019
Billings in excess of costs	$	211,470	$	126,026

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Contracts in Progress

6 Months Ended

Jun. 30, 2020

Contractors [Abstract]

Contracts in Progress

Note 6. CONTRACTS IN PROGRESS

Information with respect to contracts in progress is as follows:

	June 30, 2020			December 31, 2019
Expenditures to date on uncompleted contracts	$	2,836,714		$	4,699,855
Estimated earnings thereon		898,513			1,409,060
		3,735,227			6,108,915
Less billings to date		(3,095,863	)		(5,168,782	)
		639,364			940,133
Plus under billings remaining on contracts 100% complete		209,820			206,213
Total	$	429,544		$	1,146,346

Included in accompanying balance sheets under the following captions:

	June 30, 2020			December 31, 2019
Cost and estimated earnings in excess of billings	$	641,014		$	1,272,372
Billings in excess of costs and estimated earnings on uncompleted contracts		(211,470	)		(126,026	)
	$	429,544		$	1,146,346

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Long-Term Debt

6 Months Ended

Jun. 30, 2020

Debt Disclosure [Abstract]

Long-Term Debt

Note 7. LONG-TERM DEBT

A summary of long-term debt is as follows:

	June 30, 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.	$	703,464		$	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.		83,370			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.		260,457			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.		227,878			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.		450,799			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.		95,396			110,413
NBT Bank, National Association, 1.0% interest rate, payable in monthly installments including interest beginning September 2021, through August 2026, issued through the CARES Act Payroll Protection Program.		1,487,624			-
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.		286,071			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 5/20 – 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.		85,882			98,033
		3,680,941			2,412,304
Less current portion		(361,579	)		(426,254	)
		3,319,362			1,986,050
Less debt issuance costs		(16,933	)		(20,003	)
	$	3,302,429		$	1,966,047

Maturities of long-term debt are as follows:

Year ending December 31:	Amount
Remainder of 2020	$	207,267
2021		404,619
2022		600,960
2023		561,413
2024		515,958
2025 and thereafter		1,390,724
	$	3,680,941

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Line of Credit

6 Months Ended

Jun. 30, 2020

Debt Disclosure [Abstract]

Line of Credit

Note 8. 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 with a maturity date of September 2020. The balance outstanding was $5,225,419 and $2,675,041 at June 30, 2020 and December 31, 2019, respectively Borrowing is based on 80% of eligible accounts receivable. The line is secured by all business assets and it 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 and are in effect beginning September 2020.

The Company has a line of credit with NBT Bank with a limit of $2,000,000 to fund the development of certain solar arrays. The line has a variable interest rate based on the Wall Street Journal Prime rate, currently 4.75%. The maturity date is September 2020.There were no borrowings at June 30, 2020 and the balance was $510,100 at December 31, 2019. 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 and are in effect beginning September 2020.

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Commitments and Contingencies

6 Months Ended

Jun. 30, 2020

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

Note 9. 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 leases have a combined annual rent of $45,832.

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 $5,000 and $128 for the three months ended June 30, 2020 and 2019, respectively. Total rent expense for all of the non-cancelable leases above were $17,030 and $26,128 for the six months ended June 30, 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 $28,628 and $36,386 for the three months ended June 30, 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 $116,254 and $80,509 for the six months ended June 30, 2020 and 2019, respectively.

Future minimum lease payments required under all of the non-cancelable operating leases are as follows:

Year ending December 31:	Amount
Remainder of 2020	$	50,672
2021		54,201
2022		35,236
2023		35,371
2024		35,508
2025		35,231
Thereafter		448,546
	$	694,765

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Union Assessments

6 Months Ended

Jun. 30, 2020

Retirement Benefits [Abstract]

Union Assessments

Note 10. 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. During the three and six months ended June 30, 2020 and 2019, the Company incurred the following union assessments.

	Three Months Ended June 30,				Six Months Ended June 30,
	2020		2019		2020		2019
Pension fund	$	67,676	$	64,816	$	140,846	$	146,257
Welfare fund		152,234		198,668		366,263		453,982
National employees benefit fund		15,235		18,973		35,753		44,587
Joint apprenticeship and training committee		2,369		2,764		5,210		6,452
401(k) matching		19,502		8,097		19,502		16,832
Total	$	257,016	$	293,318	$	567,574	$	668,110

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Provision for Income Taxes

6 Months Ended

Jun. 30, 2020

Income Tax Disclosure [Abstract]

Provision for Income Taxes

Note 11. 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).

The provision for income taxes for the six months ending June 30, 2020 and 2019 consists of the following:

	June 30, 2020			June 30, 2019
Current
Federal	$	-		$	-
State		750			0
Total current		750			0
Deferred
Federal		(320,108	)		1,141,389
State		(102,227	)		364,973
Total deferred tax (asset) liability	$	(422,335	)		1,506,362
(Benefit) provision for Income Taxes	$	(421,585	)	$	1,506,362

The Company’s total deferred tax assets and liabilities at June 30, 2020 and December 31, 2019 are as follows:

	June 30, 2020			December 31, 2019
Deferred tax assets (liabilities)
Accruals and reserves	$	23,281		$	4,157
Net operating loss		776,870			421,940
Total deferred tax assets		800,151			426,097
Property and equipment		(1,476,297	)		(1,524,578	)
Total deferred tax liabilities		(1,476,297	)		(1,524,578	)
Net deferred tax asset (liabilities)	$	(676,146	)	$	(1,098,481	)

Reconciliation between the effective tax on income from operations and the statutory tax rate is as follows:

	Three Months Ended June 30,						Six Months Ended June 30,
	2020			2019			2020			2019
Income tax (benefit) expense at federal statutory rate	$	(232,744	)	$	49,341		$	(353,482	)	$	153,888
Federal taxes on period Company was a flow through entity					(49,341	)		-			(153,888	)
Permanent differences		11,107			-			23,435
Deferred tax expense recorded upon conversion to C corp		-			1,506,362			-			1,506,362
Other adjustments		19,101			-			19,101			-
State and local taxes net of federal benefit		(76,738	)		-			(110,639	)		500
Total	$	(279,274	)	$	1,506,362		$	(421,585	)	$	1,506,862

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Captive Insurance

6 Months Ended

Jun. 30, 2020

Underwriter discounts

Captive Insurance

Note 12. 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 $174,891 and $117,528 for the years ended December 31, 2019 and 2018, 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, 2019 is:

Total assets	$	68,741,297
Total liabilities	$	34,086,013
Comprehensive income	$	5,762,011

NCL’s fiscal year end is September 30, 2019.

	June 30, 2020		December 31, 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 investment	$	198,105	$	140,875

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Related Party Transactions

6 Months Ended

Jun. 30, 2020

Related Party Transactions [Abstract]

Related Party Transactions

Note 13. RELATED PARTY TRANSACTIONS

In 2014, the minority stockholders of Peck Electric Co., who sold the building that the Company occupies, lent the proceeds to the majority stockholders of Peck Electric Co. who contributed $400,000 of the net proceeds as paid in capital. At June 30, 2020 and December 31, 2020, the amount owed of $100,000 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 June 30, 2020 and December 31, 2019, the amounts 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 stockholder loaned $286,964 and $295,299 to the Company to help with cash flow needs and the amount is included in the “due to stockholders” at June 30, 2020 and December 31, 2019, respectively.

The Company was an S-corporation through June 20, 2019 and as a result, the taxable income of the Company is reported on the owner’s tax returns and they are taxed individually. As a result, the Company has accrued a distribution for taxes of $266,814 at June 30, 2020 and December 31, 2019, respectively, to the owners 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 June 30, 2020 and December 31, 2019:

	June 30, 2020		December 31, 2019
Due to stockholders consists of unsecured notes to stockholders with interest at the mid-term AFR rate (2.08% at June 30, 2020).	$	51,315	$	342,718

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Deferred Compensation Plan

6 Months Ended

Jun. 30, 2020

Compensation Related Costs [Abstract]

Deferred Compensation Plan

Note 14. 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 $93,513 at June 30, 2020. 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 June 30, 2020 and December 31, 2019 and recorded in the statement of operations when incurred.

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Earnings (Loss) Per Share

6 Months Ended

Jun. 30, 2020

Earnings Per Share [Abstract]

Earnings (Loss) Per Share

Note 15. 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 Reverse Merger and Recapitalization, the Company has retrospectively adjusted the weighted average of shares of common stock outstanding prior to June 20, 2019 by multiplying them by the exchange ratio used to determine the number of shares of common stock into which they converted.

	Three Months Ended June 30,						Six Months Ended June 30,
	2020			2019			2020			2019
Numerator:
Net Income (loss)	$	(829,030	)	$	(1,150,716	)	$	(1,261,662	)	$	(774,064	)
Denominator:
Weighted average shares outstanding:
Basic		5,298,159			3,480,676			5,298,159			3,356,916
Diluted		5,298,159			3,480,676			5,298,159			3,356,916
Basic income (loss) per share	$	(0.16	)	$	(0.33	)	$	(0.24	)	$	(0.23	)
Diluted income (loss) per share	$	(0.16	)	$	(0.33	)	$	(0.24	)	$	(0.23	)

The Company has contingent share arrangements and warrants arising from the Reverse Merger and Recapitalization and Jensyn’s IPO as 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. Below is a schedule of the potential share issuances arising from these contingencies that were excluded from the calculations above:

	Three Months Ended June 30,				Six Months Ended June 30,
	2020		2019		2020		2019
Earnout provision, includes new shares of common stock to be issued to former Peck Electric Co. shareholders		898,473		-		898,473		-
Earnout provision, includes new shares of Common Stock that may be issued to Exit Strategy		11,231		11,231		11,231		11,231
Earnout provision, including new shares of Common Stock that may be issued to holders of forfeited and canceled shares		257,799		257,799		257,799		257,799
Option to purchase Common Stock, from Jensyn’s IPO		429,000		429,000		429,000		429,000
Warrants to purchase Common Stock, from Jensyn’s IPO		2,292,250		2,292,250		2,292,250		2,292,250
Warrants to purchase Common Stock, from Solar Project Partners, LLC. Exchange and Subscription Agreement		275,000		-		275,000		-
Conversion of Preferred Stock to Common Stock from GreenSeed Investors, LLC Exchange and Subscription Agreement		200,000		-		200,000		-

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Preferred Stock

6 Months Ended

Jun. 30, 2020

Equity [Abstract]

Preferred Stock

Note 16. PREFERRED STOCK

The Company has authorized and designated 1,000,000 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 one share 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.

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Subsequent Events

6 Months Ended

Jun. 30, 2020

Subsequent Events [Abstract]

Subsequent Events

Note 17. SUBSEQUENT EVENTS

The Company entered into a definitive Agreement and Plan of Merger with Sunworks, Inc. on August 10, 2020. The transaction is subject to customary regulatory approvals and approval by both company’s shareholders. Management expects the transaction to be closed in the fourth quarter of 2020.

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Summary of Operations and Significant Accounting Policies (Policies)

6 Months Ended

Jun. 30, 2020

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Organization

a) Organization

The Peck Company 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 South Burlington, Vermont.

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, 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.” and the symbol for its Common Stock traded on Nasdaq became “PECK”. Unless the context otherwise requires, “we,” “us,” “our,” “Peck Company” and the “Company” refer to the combined company.

Basis of Presentation

b) Basis of Presentation

The accompanying unaudited condensed financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 8 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring adjustments) considered necessary for a fair presentation have been included. Operating results for the three and six months ended June 30, 2020 are not necessarily indicative of the results that may be expected for the year ending December 31, 2020 or any other period. The accompanying financial statements should be read in conjunction with the Company’s audited financial statements and related notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2019.

Revenue Recognition

c) Revenue Recognition

1) Revenue Recognition Standard

In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers (Topic 606). The ASU and all subsequently issued clarifying ASUs replaced most existing revenue recognition guidance in U.S. GAAP. The ASU also required expanded disclosures relating to the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. The Company adopted the new standard in the fourth quarter 2019, effective January 1, 2019, the first day of the Company’s fiscal year, using the modified retrospective method.

As part of the adoption of the ASU, the Company elected to use the following transition practical expedients: (i) completed contracts that begin and end in the same annual reporting period have not been restated; (ii) the Company used the known transaction price for completed contracts; (iii) to exclude disclosures of transaction prices allocated to remaining performance obligations when the Company expects to recognize such revenue for all periods prior to the date of initial application of the ASU; and (iv) the Company has reflected the aggregate of all contract modifications that occurred prior to the date of initial application when identifying the satisfied and unsatisfied performance obligations, determining the transaction price, and allocating the transaction price.

The majority of the Company’s revenue is recognized over time based on the percentage of completion method with cost inputs. Revenue recognized over time primarily consists of performance obligations that are satisfied within one year or less. The majority of the Company’s revenue arrangements generally consist of a single performance obligation to transfer promised goods or services

2) 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 accurate 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 June 30, 2020, 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.

3) 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 three and six months ended June 30:

	Three Months Ended June 30,				Six Months Ended June 30,
	2020		2019		2020		2019
Performance obligations satisfied over time
Solar	$	2,092,228	$	4,756,009	$	5,322,072	$	7,207,725
Electric		482,566		1,234,317		974,206		2,367,423
Data and Network		195,432		287,787		458,628		553,442
Total	$	2,770,226	$	6,278,113	$	6,754,906	$	10,128,590

During the periods ended June 30, 2020 and 2019, there was no revenue recognized based on the satisfaction of performance obligation at a point in time.

4) 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.

5) 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.

6) Warranties

The Company generally provides limited warranties 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

e) Accounts Receivable

Accounts receivable are recorded when invoices are issued and presented on the condensed balance sheet net of the allowance for doubtful accounts. The allowance, which was $84,000 at June 30, 2020 and 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

f) 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 three and six months ended June 30, 2020 and 2019, respectively.

Property and Equipment

g) 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:

Buildings and improvements	39 years
Vehicles	3-5 years
Tools and equipment	3-7 years
Solar arrays	20 years

Total depreciation expense for the three months ended June 30, 2020 and June 30, 2019 was $155,012 and $160,570, respectively. Total depreciation expense for the six months ended June 30, 2020 and June 30, 2019 was $310,024 and $311,053, 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.

Long-Lived Assets

h) 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.

Asset Retirement Obligations

i) 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 June 30, 2020 and December 31, 2019.

Concentration and Credit Risks

j) 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 limit of up to $250,000 per financial institution. The differences between book and bank balances are outstanding checks and deposits in transit. At June 30, 2020, the uninsured balances were immaterial.

Income Taxes

k) Income Taxes

Through June 20, 2019 (the date of the closing of the Exchange Agreement) 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. The provision for income taxes for former Peck Electric was primarily for Vermont minimum taxes. As of the date of the completion of the Exchange Agreement, 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.

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.

Use of Estimates

l) Use of Estimates

The preparation of financial statements in conformity with U.S. GAAP 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, specifically percentage-of-completion. Actual results could differ from those estimates.

Recently Issued Accounting Pronouncements

m) 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 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. ASU 2016-02 was recently delayed for emerging growth companies that elected to adopt new accounting standards on the adoption date required for private companies and will be effective for the Company’s annual reporting period in 2022 and interim periods beginning first quarter of 2023. The Company is evaluating the impact ASU 2016-02 will have on its financial statements and associated 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 2022 annual reporting period and interim periods beginning first quarter of 2023. The Company is evaluating the impact of ASU 2016-13 will have on its 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 guidance is effective January 1, 2021 with early adoption permitted.

Deferred Finance Costs

n) 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 $21,547 of deferred financing costs for the year ended December 31, 2019 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 $1,535 for the three months ended June 30, 2020 and $0 for the three months ended June 30, 2019. Amortization expense associated with deferred financing costs, which is included in interest expense, totaled $3,070 for the six months ended June 30, 2020 and $0 for the six months ended June 30, 2019. 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 $413,032 of deferred financing costs that was recorded to additional paid in capital for the year ended December 31, 2019.

Fair Value of Financial Instruments

o) 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 and cash equivalents, 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 credit facilities approximate their fair values.

The earnout provision of the Share Exchange is considered a Level 3 measurement. Given that the probability of such provisions being achieved is highly unlikely, no value was assigned to the earnout provision.

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Summary of Operations and Significant Accounting Policies (Tables)

6 Months Ended

Jun. 30, 2020

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Schedule of 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 three and six months ended June 30:

	Three Months Ended June 30,				Six Months Ended June 30,
	2020		2019		2020		2019
Performance obligations satisfied over time
Solar	$	2,092,228	$	4,756,009	$	5,322,072	$	7,207,725
Electric		482,566		1,234,317		974,206		2,367,423
Data and Network		195,432		287,787		458,628		553,442
Total	$	2,770,226	$	6,278,113	$	6,754,906	$	10,128,590

Schedule of Estimated Useful Lives

The estimated useful lives are as follows:

Buildings and improvements	39 years
Vehicles	3-5 years
Tools and equipment	3-7 years
Solar arrays	20 years

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Accounts Receivable (Tables)

6 Months Ended

Jun. 30, 2020

Credit Loss [Abstract]

Schedule of Accounts Receivable

Accounts receivable consist of:

	June 30, 2020			December 31, 2019
Accounts receivable - contracts in progress	$	7,105,561		$	7,190,412
Accounts receivable - retainage		111,222			188,193
		7,216,783			7,378,605
Allowance for doubtful accounts		(84,000	)		(84,000	)
Total	$	7,132,783		$	7,294,605

Schedule of Contract Assets and Liabilities

Contract assets were as follows at June 30, 2020 and December 31, 2019:

	June 30, 2020		December 31, 2019
Costs in excess of billings	$	641,014	$	1,272,372
Unbilled receivables		-		206,213
Retainage		111,222		188,193
	$	752,236	$	1,666,778

Contract liabilities were as follows at June 30, 2020 and December 31, 2019:

	June 30, 2020		December 31, 2019
Billings in excess of costs	$	211,470	$	126,026

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Contracts in Progress (Tables)

6 Months Ended

Jun. 30, 2020

Contractors [Abstract]

Schedule of Contracts in Progress Information

Information with respect to contracts in progress is as follows:

	June 30, 2020			December 31, 2019
Expenditures to date on uncompleted contracts	$	2,836,714		$	4,699,855
Estimated earnings thereon		898,513			1,409,060
		3,735,227			6,108,915
Less billings to date		(3,095,863	)		(5,168,782	)
		639,364			940,133
Plus under billings remaining on contracts 100% complete		209,820			206,213
Total	$	429,544		$	1,146,346

Schedule of Balance Sheets Under Following Captions

Included in accompanying balance sheets under the following captions:

	June 30, 2020			December 31, 2019
Cost and estimated earnings in excess of billings	$	641,014		$	1,272,372
Billings in excess of costs and estimated earnings on uncompleted contracts		(211,470	)		(126,026	)
	$	429,544		$	1,146,346

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Long-Term Debt (Tables)

6 Months Ended

Jun. 30, 2020

Debt Disclosure [Abstract]

Summary of Long-term Debt

A summary of long-term debt is as follows:

	June 30, 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.	$	703,464		$	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.		83,370			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.		260,457			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.		227,878			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.		450,799			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.		95,396			110,413
NBT Bank, National Association, 1.0% interest rate, payable in monthly installments including interest beginning September 2021, through August 2026, issued through the CARES Act Payroll Protection Program.		1,487,624			-
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.		286,071			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 5/20 – 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.		85,882			98,033
		3,680,941			2,412,304
Less current portion		(361,579	)		(426,254	)
		3,319,362			1,986,050
Less debt issuance costs		(16,933	)		(20,003	)
	$	3,302,429		$	1,966,047

Schedule of Maturities of Long-term Debt

Maturities of long-term debt are as follows:

Year ending December 31:	Amount
Remainder of 2020	$	207,267
2021		404,619
2022		600,960
2023		561,413
2024		515,958
2025 and thereafter		1,390,724
	$	3,680,941

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Commitments and Contingencies (Tables)

6 Months Ended

Jun. 30, 2020

Leases [Abstract]

Schedule of Minimum Lease Payments

Future minimum lease payments required under all of the non-cancelable operating leases are as follows:

Year ending December 31:	Amount
Remainder of 2020	$	50,672
2021		54,201
2022		35,236
2023		35,371
2024		35,508
2025		35,231
Thereafter		448,546
	$	694,765

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Union Assessments (Tables)

6 Months Ended

Jun. 30, 2020

Retirement Benefits [Abstract]

Schedule of Union Assessments

During the three and six months ended June 30, 2020 and 2019, the Company incurred the following union assessments.

	Three Months Ended June 30,				Six Months Ended June 30,
	2020		2019		2020		2019
Pension fund	$	67,676	$	64,816	$	140,846	$	146,257
Welfare fund		152,234		198,668		366,263		453,982
National employees benefit fund		15,235		18,973		35,753		44,587
Joint apprenticeship and training committee		2,369		2,764		5,210		6,452
401(k) matching		19,502		8,097		19,502		16,832
Total	$	257,016	$	293,318	$	567,574	$	668,110

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Provision for Income Taxes (Tables)

6 Months Ended

Jun. 30, 2020

Income Tax Disclosure [Abstract]

Schedule of Provision for Income Taxes

The provision for income taxes for the six months ending June 30, 2020 and 2019 consists of the following:

	June 30, 2020			June 30, 2019
Current
Federal	$	-		$	-
State		750			0
Total current		750			0
Deferred
Federal		(320,108	)		1,141,389
State		(102,227	)		364,973
Total deferred tax (asset) liability	$	(422,335	)		1,506,362
(Benefit) provision for Income Taxes	$	(421,585	)	$	1,506,362

Schedule of Deferred Tax Assets and Liabilities

The Company’s total deferred tax assets and liabilities at June 30, 2020 and December 31, 2019 are as follows:

	June 30, 2020			December 31, 2019
Deferred tax assets (liabilities)
Accruals and reserves	$	23,281		$	4,157
Net operating loss		776,870			421,940
Total deferred tax assets		800,151			426,097
Property and equipment		(1,476,297	)		(1,524,578	)
Total deferred tax liabilities		(1,476,297	)		(1,524,578	)
Net deferred tax asset (liabilities)	$	(676,146	)	$	(1,098,481	)

Schedule of Reconciliation Between Effective Income Tax Operations and Statutory Tax Rate

Reconciliation between the effective tax on income from operations and the statutory tax rate is as follows:

	Three Months Ended June 30,						Six Months Ended June 30,
	2020			2019			2020			2019
Income tax (benefit) expense at federal statutory rate	$	(232,744	)	$	49,341		$	(353,482	)	$	153,888
Federal taxes on period Company was a flow through entity					(49,341	)		-			(153,888	)
Permanent differences		11,107			-			23,435
Deferred tax expense recorded upon conversion to C corp		-			1,506,362			-			1,506,362
Other adjustments		19,101			-			19,101			-
State and local taxes net of federal benefit		(76,738	)		-			(110,639	)		500
Total	$	(279,274	)	$	1,506,362		$	(421,585	)	$	1,506,862

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Captive Insurance (Tables)

6 Months Ended

Jun. 30, 2020

Captive Insurance Tables Abstract

Summary Financial Information on NCL

Summary financial information on NCL as of September 30, 2019 is:

Total assets	$	68,741,297
Total liabilities	$	34,086,013
Comprehensive income	$	5,762,011

Schedule of Investments

NCL’s fiscal year end is September 30, 2019.

	June 30, 2020		December 31, 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 investment	$	198,105	$	140,875

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Related Party Transactions (Tables)

6 Months Ended

Jun. 30, 2020

Related Party Transactions [Abstract]

Schedule of Amounts Due To/from Stockholders

The amounts below include amounts due to/from stockholders as of June 30, 2020 and December 31, 2019:

	June 30, 2020		December 31, 2019
Due to stockholders consists of unsecured notes to stockholders with interest at the mid-term AFR rate (2.08% at June 30, 2020).	$	51,315	$	342,718

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Earnings (Loss) Per Share (Tables)

6 Months Ended

Jun. 30, 2020

Earnings Per Share [Abstract]

Schedule of Earnings Per Share, Basic and Diluted

	Three Months Ended June 30,						Six Months Ended June 30,
	2020			2019			2020			2019
Numerator:
Net Income (loss)	$	(829,030	)	$	(1,150,716	)	$	(1,261,662	)	$	(774,064	)
Denominator:
Weighted average shares outstanding:
Basic		5,298,159			3,480,676			5,298,159			3,356,916
Diluted		5,298,159			3,480,676			5,298,159			3,356,916
Basic income (loss) per share	$	(0.16	)	$	(0.33	)	$	(0.24	)	$	(0.23	)
Diluted income (loss) per share	$	(0.16	)	$	(0.33	)	$	(0.24	)	$	(0.23	)

Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share

Below is a schedule of the potential share issuances arising from these contingencies that were excluded from the calculations above:

	Three Months Ended June 30,				Six Months Ended June 30,
	2020		2019		2020		2019
Earnout provision, includes new shares of common stock to be issued to former Peck Electric Co. shareholders		898,473		-		898,473		-
Earnout provision, includes new shares of Common Stock that may be issued to Exit Strategy		11,231		11,231		11,231		11,231
Earnout provision, including new shares of Common Stock that may be issued to holders of forfeited and canceled shares		257,799		257,799		257,799		257,799
Option to purchase Common Stock, from Jensyn’s IPO		429,000		429,000		429,000		429,000
Warrants to purchase Common Stock, from Jensyn’s IPO		2,292,250		2,292,250		2,292,250		2,292,250
Warrants to purchase Common Stock, from Solar Project Partners, LLC. Exchange and Subscription Agreement		275,000		-		275,000		-
Conversion of Preferred Stock to Common Stock from GreenSeed Investors, LLC Exchange and Subscription Agreement		200,000		-		200,000		-

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Summary of Operations and Significant Accounting Policies (Details Narrative) - USD ($)		3 Months Ended		6 Months Ended
	Jun. 20, 2019	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019	Dec. 31, 2019
Common stock, par value		$ 0.0001		$ 0.0001		$ 0.0001
Issuing stock for net assets and equity		$ 0		$ 0
Allowance for accounts receivable		84,000		84,000		$ 84,000
Project asset		0	$ 0	$ 0	$ 0
Property and equipment, description				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.
Property and equipment, costs		1,000		$ 1,000
Depreciation expense		155,012	$ 160,570	310,024	311,053
Cash, FDIC insured amount		$ 250,000		250,000
Deferred tax liability						1,506,362
Deferred financing costs						21,547
Amortization expense				$ 3,070	$ 0
Deferred financing cost						$ 413,032
Share Exchange Agreement [Member]
Stock issued for common stock, shares	3,234,501
Common stock, par value	$ 0.0001
Deferred tax liability	$ 1,506,362

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Summary of Operations and Significant Accounting Policies - Schedule of Disaggregation of Revenue from Contracts with Customers (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Revenue	$ 2,770,226	$ 6,278,113	$ 6,754,906	$ 10,128,590
Performance Obligations Satisfied Over Time [Member]
Revenue	2,770,226	6,278,113	6,754,906	10,128,590
Solar Operations [Member] | Performance Obligations Satisfied Over Time [Member]
Revenue	2,092,228	4,756,009	5,322,072	7,207,725
Electric Operations [Member] | Performance Obligations Satisfied Over Time [Member]
Revenue	482,566	1,234,317	974,206	2,367,423
Data and Network Operations [Member] | Performance Obligations Satisfied Over Time [Member]
Revenue	$ 195,432	$ 287,787	$ 458,628	$ 553,442

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Summary of Operations and Significant Accounting Policies - Schedule of Estimated Useful Lives (Details)	6 Months Ended
	Jun. 30, 2020
Buildings and Improvements [Member]
Estimated useful lives of property and equipment	39 years
Vehicles [Member] | Minimum [Member]
Estimated useful lives of property and equipment	3 years
Vehicles [Member] | Maximum [Member]
Estimated useful lives of property and equipment	5 years
Tools and Equipment [Member] | Minimum [Member]
Estimated useful lives of property and equipment	3 years
Tools and Equipment [Member] | Maximum [Member]
Estimated useful lives of property and equipment	7 years
Solar Arrays [Member]
Estimated useful lives of property and equipment	20 years

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Exchange Agreement/Reverse Merger and Recapitalization (Details Narrative) - Share Exchange Agreement [Member] - USD ($)			6 Months Ended	12 Months Ended
	Jun. 20, 2019	Jun. 20, 2019	Jun. 30, 2020	Jun. 30, 2020	Dec. 31, 2019
Stock issued for common stock, shares	3,234,501
Common stock exchange of outstanding percentage	59.00%
Conversion of stock shares converted	4,194,500
Number of warrants exercisable	2,097,250	2,097,250
Warrant exercise price	$ 11.50	$ 11.50
Number of shares issued for business combination	493,299
Number of shares issued for business combination, value	$ 5,618,675
Number of shares forfeited and cancelled	281,758
Number of forfeited new shares issued					257,799
Number of remaining shares of common stock are pending forfeiture and cancellation			23,959
Peck Electric Co [Member]
Stock issued for common stock, shares				898,473
Exit Strategy Partners, LLC [Member]
Stock issued for common stock, shares				11,231
Peck Electric Co and Exit Strategy Partners, LLC [Member]
Earnout provision, description				Earnout provision will be met in the event that (a) the Company's Adjusted EBITDA for the twelve (12) month period commencing on the first full month that is after the Closing Date (the "Earnout Period") is $5,000,000 or more (the "Adjusted EBITDA Target) or (b) the closing Stock Price is $12.00 or more after the Closing Date (the "Stock Price Target") and prior to the end of the Earnout Period.
Private Warrants [Member]
Number of warrants exercisable	195,000	195,000
Warrant exercise price	$ 11.50	$ 11.50
Half Share [Member]
Warrant exercise price	5.75	5.75
Half Share [Member] | Private Warrants [Member]
Warrant exercise price	$ 5.75	$ 5.75
IPO [Member] | Private Warrants [Member]
Number of warrants exercisable	390,000	390,000
Common Stock [Member]
Stock issued for common stock, shares	1,819,482
Conversion of stock shares converted	419,450
Stock redeemed shares of common stock	492,037
Stock redeemed shares of common stock, value	$ 5,510,814
Warrant [Member]
Number of warrants exercisable	3,900,000	3,900,000
Warrant [Member] | Purchase Option [Member]
Number of warrants exercisable	390,000	390,000
Warrant exercise price	$ 12.00	$ 12.00
Warrants purchase option, description		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: 1. One share of Common Stock 2. One right to receive one-tenth (1/10) of a share of Common Stock issued upon exercise of the Unit 3. 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).
Warrant [Member] | Private Placement [Member]
Number of warrants exercisable	294,500	294,500

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Exchange and Subscription Agreement (Details Narrative)		6 Months Ended
	Apr. 22, 2020 USD ($) $ / shares shares	Jun. 30, 2020 USD ($)
Warrant term	5 years
Volatility [Member]
Warrant measurement input	71.36
Risk Free Rate [Member]
Warrant measurement input	0.36
Dividend Yield [Member]
Warrant measurement input	0
GreenSeed Investors, LLC [Member]
Fair value of investment | $		$ 5,000,000
Fair value of warrants | $		96,052
Solar Project Partners, LLC [Member]
Fair value of investment | $		$ 96,052
Exchange Agreement [Member] | GreenSeed Investors, LLC [Member]
Number of stock issued price per share | $ / shares	$ 10.00
Number of exchange shares	100,000
Warrant to acquire	275,000
Warrants exercise price | $ / shares	$ 15.00
Number of repurchase shares | $	$ 400,000
Number of repurchase shares, value	4,000,000
Exchange Agreement [Member] | GreenSeed Investors, LLC [Member] | Tranches [Member]
Number of repurchase shares | $	$ 50,000
Exchange Agreement [Member] | GreenSeed Investors, LLC [Member] | Class B Preferred [Member]
Number of common stock shares issued	500,000
Exchange Agreement [Member] | GreenSeed Investors, LLC [Member] | Series A Preferred Stock [Member]
Number of common stock shares issued	200,000
Additional Purchase Agreement [Member] | GreenSeed Investors, LLC [Member] | Series A Preferred Stock [Member]
Number of common stock shares issued	500,000
Number of stock issued price per share | $ / shares	$ 10.00

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Liquidity and Financial Condition (Details Narrative) - USD ($)		6 Months Ended
	Apr. 24, 2020	Jun. 30, 2020	Mar. 31, 2020	Dec. 31, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018
Cash		$ 93,187		$ 95,930
Working capital		244,515
Stockholders' equity		7,851,151	$ 3,584,129	$ 4,016,761	$ 3,681,684	$ 5,257,491	$ 5,071,038
Equity Line of Credit [Member] | Lincoln Park Capital [Member]
Line of credit		$ 15,000,000
Equity line of credit, description		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.
Number of shares authorized		3,024,194
Payroll Protection Program [Member]
Proceeds from loan	$ 1,487,624
Debt forgiveness, percentage	40.00%
Debt interest rate	1.00%
Debt maturity date	Apr. 24, 2025

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Accounts Receivable (Details Narrative) - USD ($)	Jun. 30, 2020	Jun. 30, 2019
Credit Loss [Abstract]
Bad debt expense	$ 0	$ 0

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Accounts Receivable - Schedule of Accounts Receivable (Details) - USD ($)	Jun. 30, 2020	Dec. 31, 2019
Accounts receivable, gross	$ 7,216,783	$ 7,378,605
Allowance for doubtful accounts	(84,000)	(84,000)
Total	7,132,783	7,294,605
Accounts Receivable - Contracts in Progress [Member]
Accounts receivable, gross	7,105,561	7,190,412
Accounts Receivable - Retainage [Member]
Accounts receivable, gross	$ 111,222	$ 188,193

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Accounts Receivable - Schedule of Contract Assets and Liabilities (Details) - USD ($)	Jun. 30, 2020	Dec. 31, 2019
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Costs in excess of billings	$ 641,014	$ 1,272,372
Unbilled receivables		206,213
Retainage	111,222	188,193
Contract assets	752,236	1,666,778
Billings in excess of costs	$ 211,470	$ 126,026

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Contracts in Progress - Schedule of Contracts in Progress Information (Details) - USD ($)	Jun. 30, 2020	Dec. 31, 2019
Revenue from Contract with Customer [Abstract]
Expenditures to date on uncompleted contracts	$ 2,836,714	$ 4,699,855
Estimated earnings thereon	898,513	1,409,060
Total expenditure and estimated earnings	3,735,227	6,108,915
Less billings to date	(3,095,863)	(5,168,782)
Contracts in progress, gross	639,364	940,133
Plus under billings remaining on contracts 100% complete	209,820	206,213
Total	$ 429,544	$ 1,146,346

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Contracts in Progress - Schedule of Contracts in Progress Information (Details) (Parenthetical)	Jun. 30, 2020	Dec. 31, 2019
Revenue from Contract with Customer [Abstract]
Plus under billings remaining on contracts, percentage	100.00%	100.00%

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Contracts in Progress - Schedule of Balance Sheets Under Following Captions (Details) - USD ($)	Jun. 30, 2020	Dec. 31, 2019
Revenue from Contract with Customer [Abstract]
Cost and estimated earnings in excess of billings	$ 641,014	$ 1,272,372
Billings in excess of costs and estimated earnings on uncompleted contracts	(211,470)	(126,026)
Total	$ 429,544	$ 1,146,346

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Long-Term Debt - Summary of Long-term Debt (Details) - USD ($)	Jun. 30, 2020	Dec. 31, 2019
Long-term debt	$ 3,680,941	$ 2,412,304
Less current portion	(361,579)	(426,254)
Long-term debt, net of current portion	3,319,362	1,986,050
Less debt issuance costs	(16,933)	(20,003)
Long-term debt, net of debt issuance cost	3,302,429	1,966,047
NBT Bank, National Association, 4.25% [Member]
Long-term debt	703,464	723,230
NBT Bank, National Association, 4.00% [Member]
Long-term debt	83,370	153,258
NBT Bank, National Association, 4.20% [Member]
Long-term debt	260,457	274,476
NBT Bank, National Association, 4.15% [Member]
Long-term debt	227,878	244,920
NBT Bank, National Association, 4.20% [Member]
Long-term debt	450,799	474,464
NBT Bank, National Association, 4.85% [Member]
Long-term debt	95,396	110,413
NBT Bank, National Association, 1.0% [Member]
Long-term debt	1,487,624
Vehicle Loans [Member]
Long-term debt	286,071	333,510
National Bank of Middlebury, 3.95% [Member]
Long-term debt	$ 85,882	$ 98,033

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Long-Term Debt - Summary of Long-term Debt (Details) (Parenthetical) - USD ($)	6 Months Ended	12 Months Ended
	Jun. 30, 2020	Dec. 31, 2019
NBT Bank, National Association, 4.25% [Member]
Debt instrument, interest rate	4.25%	4.25%
Debt instrument, monthly installments	$ 5,869	$ 5,869
Debt instrument, maturity date description	September 2026	September 2026
NBT Bank, National Association, 4.00% [Member]
Debt instrument, interest rate	4.00%	4.00%
Debt instrument, monthly installments	$ 12,070	$ 12,070
Debt instrument, maturity date description	January 2021	January 2021
NBT Bank, National Association, 4.20% [Member]
Debt instrument, interest rate	4.20%	4.20%
Debt instrument, monthly installments	$ 3,293	$ 3,293
Debt instrument, maturity date description	September 2026	September 2026
NBT Bank, National Association, 4.15% [Member]
Debt instrument, interest rate	4.15%	4.15%
Debt instrument, monthly installments	$ 3,677	$ 3,677
Debt instrument, maturity date description	April 2026	April 2026
NBT Bank, National Association, 4.20% [Member]
Debt instrument, interest rate	4.20%	4.20%
Debt instrument, monthly installments	$ 5,598	$ 5,598
Debt instrument, maturity date description	October 2026	October 2026
NBT Bank, National Association, N.A., 4.85% [Member]
Debt instrument, interest rate	4.85%	4.85%
Debt instrument, monthly installments	$ 2,932	$ 2,932
Debt instrument, maturity date description	May 2023	May 2023
NBT Bank, National Association, 1.0% [Member]
Debt instrument, interest rate	1.00%	1.00%
Debt instrument, maturity date description	September 2021, through August 2026	September 2021, through August 2026
Vehicle Loans [Member]
Debt instrument, monthly installments	$ 8,150	$ 8,150
Debt instrument, maturity date description	September 2025	September 2025
Vehicle Loans [Member] | Minimum [Member]
Debt instrument, variable rate	0.00%	0.00%
Vehicle Loans [Member] | Maximum [Member]
Debt instrument, variable rate	6.99%	6.99%
National Bank of Middlebury, 3.95% [Member]
Debt instrument, interest rate	3.95%	3.95%
Debt instrument, monthly installments	$ 2,388	$ 2,388
Debt instrument, maturity date description	December 2024	December 2024
Debt instrument, term	5 years	5 years
National Bank of Middlebury, 3.95% [Member] | Advance Rate Plus [Member]
Debt instrument, variable rate	2.75%	2.75%
National Bank of Middlebury, 3.95% [Member] | Floor Rate [Member]
Debt instrument, variable rate	3.95%	3.95%

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Long-Term Debt - Schedule of Maturities of Long-term Debt (Details) - USD ($)	Jun. 30, 2020	Dec. 31, 2019
Debt Disclosure [Abstract]
Remainder of 2020	$ 207,267
2021	404,619
2022	600,960
2023	561,413
2024	515,958
2025 and thereafter	1,390,724
Total	$ 3,680,941	$ 2,412,304

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Line of Credit (Details Narrative) - Line of Credit [Member] - NBT Bank [Member] - USD ($)	6 Months Ended
	Jun. 30, 2020	Dec. 31, 2019
Line of credit facility maximum borrowing capacity	$ 6,000,000
Line of credit	5,225,419	$ 2,675,041
Certain Solar Arrays [Member]
Line of credit facility maximum borrowing capacity	$ 2,000,000
Debt instrument, variable rate	4.75%
Debt instrument, maturity date description	September 2020
Line of credit		$ 510,100
Debt instrument, covenant ratio description	These financial covenants consist of a minimum debt service coverage ratio of 1.20 to 1.00 measured on a quarterly basis and are in effect beginning September 2020.
Prime Rate [Member]
Debt instrument, variable rate	3.25%
Debt instrument, maturity date description	September 2020.
Line of credit facility, borrowing capacity percentage	80.00%
Debt instrument, covenant ratio description	These financial covenants consist of a minimum debt service coverage ratio of 1.20 to 1.00 measured on a quarterly basis and are in effect beginning September 2020.

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Commitments and Contingencies (Details Narrative) - USD ($)	1 Months Ended				3 Months Ended		6 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2015	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Operating lease annual rent					$ 5,000	$ 128	$ 17,030	$ 26,128
Non-cancelable Lease Agreements One [Member]
Operating lease term				25 years
Operating lease annual rent				$ 2,500
Non-cancelable Lease Agreements Two [Member]
Operating lease term				25 years
Operating lease annual rent				$ 2,500
Operating lease annual increase percentage				2.00%
Non-cancelable Lease Agreements [Member]
Operating lease term	2 years	20 years	20 years
Operating lease annual rent	$ 45,832	$ 26,000	$ 3,500
Operating lease annual increase percentage			2.00%
Short Term Rental Agreements [Member]
Operating lease annual rent					$ 28,628	$ 36,386	$ 116,254	$ 80,509

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Commitments and Contingencies - Schedule of Minimum Lease Payments (Details)	Jun. 30, 2020 USD ($)
Commitments and Contingencies Disclosure [Abstract]
Remainder of 2020	$ 50,672
2021	54,201
2022	35,236
2023	35,371
2024	35,508
2025	35,231
Thereafter	448,546
Operating leases future minimum lease payments	$ 694,765

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Union Assessments - Schedule of Union Assessments (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Total	$ 257,016	$ 293,318	$ 567,574	$ 668,110
Pension Fund [Member]
Total	67,676	64,816	140,846	146,257
Welfare Fund [Member]
Total	152,234	198,668	366,263	453,982
National Employees Benefit Fund [Member]
Total	15,235	18,973	35,753	44,587
Joint Apprenticeship and Training Committee [Member]
Total	2,369	2,764	5,210	6,452
401(k) Matching [Member]
Total	$ 19,502	$ 8,097	$ 19,502	$ 16,832

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Provision for Income Taxes (Details Narrative) - USD ($)	6 Months Ended		12 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Dec. 31, 2019
Income Tax Disclosure [Abstract]
Deferred Income tax expense	$ (422,335)	$ 1,506,362	$ 1,098,481
Deferred tax liability			$ 1,506,362

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Provision for Income Taxes - Schedule of Provision for Income Taxes (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Income Tax Disclosure [Abstract]
Current: Federal
Current: State			750	0
Total Current			750	0
Deferred: Federal			(320,108)	1,141,389
Deferred: State			(102,227)	364,973
Total deferred tax (asset) liability			(422,335)	1,506,362
(Benefit) provision for income taxes	$ (279,274)	$ 1,506,362	$ (421,585)	$ 1,506,862

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Provision for Income Taxes - Schedule of Deferred Tax Assets and Liabilities (Details) - USD ($)	Jun. 30, 2020	Dec. 31, 2019
Income Tax Disclosure [Abstract]
Accruals and reserves	$ 23,281	$ 4,157
Net operating loss	776,870	421,940
Total deferred tax assets	800,151	426,097
Property and equipment	(1,476,297)	(1,524,578)
Total deferred tax liabilities	(1,476,297)	(1,524,578)
Net deferred tax asset (liabilities)	$ (676,146)	$ (1,098,481)

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Provision for Income Taxes - Schedule of Reconciliation Between Effective Income Tax Operations and Statutory Tax Rate (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Income Tax Disclosure [Abstract]
Income tax (benefit) expense at federal statutory rate	$ (232,744)	$ 49,341	$ (353,482)	$ 153,888
Federal taxes on period Company was a flow through entity		(49,341)		(153,888)
Permanent differences	11,107		23,435
Deferred tax expense recorded upon conversion to C corp		1,506,362		1,506,362
Other adjustments	19,101		19,101
State and local taxes net of federal benefit	(76,738)		(110,639)	500
Income tax (benefit) expense	$ (279,274)	$ 1,506,362	$ (421,585)	$ 1,506,862

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Captive Insurance (Details Narrative) - USD ($)	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Jun. 30, 2020
Captive insurance premiums paid	$ 174,891	$ 117,528
Captive insurance investment	$ 140,875		$ 198,105
Invests one-time capitalization description	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.
Investment a one-time cash capitalization	$ 36,000
Redeemable preference shares	$ 35,900
Single common share price	$ 100
Fund A [Member]
Captive insurance investment	$ 100,000
Fund B [Member] | Maximum [Member]
Captive insurance investment	$ 300,000

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Captive Insurance - Summary Financial Information on NCL (Details) - USD ($)	9 Months Ended
	Sep. 30, 2019	Jun. 30, 2020	Dec. 31, 2019
Underwriter discounts
Total assets	$ 68,741,297	$ 19,731,867	$ 15,671,819
Total liabilities	34,086,013	$ 11,880,716	$ 11,655,058
Comprehensive income	$ 5,762,011

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Captive Insurance - Schedule of Investments (Details) - Navigator Casualty, LTD. [Member] - USD ($)	Jun. 30, 2020	Dec. 31, 2019
Total investment	$ 198,105	$ 140,875
Capital [Member]
Total investment	36,000	36,000
Cash Security [Member]
Total investment	158,785	101,555
Investment Income in Excess of Losses [Member]
Total investment	$ 3,320	$ 3,320

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Related Party Transactions (Details Narrative) - USD ($)	1 Months Ended		6 Months Ended		12 Months Ended
	May 31, 2018	Dec. 31, 2014	Jun. 30, 2020	Jun. 30, 2019	Dec. 31, 2019
Proceeds from related party debt				$ 421,070
Accrued distribution for taxes			266,814		$ 266,814
Majority Stockholders [Member]
Due to related party			286,964		295,299
Majority Stockholders [Member] | Peck Electric Co [Member]
Proceeds from related party debt		$ 400,000
Due to related party			100,000		117,605
Minority Stockholders [Member]
Due to related party			$ 602,463		$ 337,000
Related party transaction, amounts of transaction	$ 250,000

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Related Party Transactions - Schedule of Amounts Due To/from Stockholders (Details) - Majority Stockholders [Member] - USD ($)	Jun. 30, 2020	Dec. 31, 2019
Due to stockholders	$ 286,964	$ 295,299
Unsecured Notes [Member]
Due to stockholders	$ 51,315	$ 342,718

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Related Party Transactions - Schedule of Amounts Due To/from Stockholders (Details) (Parenthetical)	6 Months Ended
	Jun. 30, 2020
Majority Stockholders [Member] | Unsecured Notes [Member]
Debt instrument, variable rate	2.08%

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Deferred Compensation Plan (Details Narrative) - USD ($)	12 Months Ended
	Dec. 31, 2017	Jun. 30, 2020
Compensation Related Costs [Abstract]
Deferred compensation arrangement		$ 155,000
Deferred compensation arrangement, current		$ 93,513
Solar management fee, percent	24.50%

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Earnings (Loss) Per Share - Schedule of Earnings Per Share, Basic and Diluted (Details) - USD ($)	3 Months Ended				6 Months Ended
	Jun. 30, 2020	Mar. 31, 2020	Jun. 30, 2019	Mar. 31, 2019	Jun. 30, 2020	Jun. 30, 2019
Earnings Per Share [Abstract]
Net Income (loss)	$ (829,030)	$ (432,632)	$ (1,150,716)	$ 376,652	$ (1,261,662)	$ (774,064)
Weighted average shares outstanding: Basic	5,298,159		3,480,676		5,298,159	3,356,916
Weighted average shares outstanding: Diluted	5,298,159		3,480,676		5,298,159	3,356,916
Basic income (loss) per share	$ (0.16)		$ (0.33)		$ (0.24)	$ (0.23)
Diluted income (loss) per share	$ (0.16)		$ (0.33)		$ (0.24)	$ (0.23)

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Earnings (Loss) Per Share - Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share (Details) - shares	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Earnings Per Share [Abstract]
Earnout provision, includes new shares of common stock to be issued to former Peck Electric Co. shareholders	898,473		898,473
Earnout provision, includes new shares of Common Stock that may be issued to Exit Strategy	11,231	11,231	11,231	11,231
Earnout provision, including new shares of Common Stock that may be issued to holders of forfeited and canceled shares	257,799	257,799	257,799	257,799
Option to purchase Common Stock, from Jensyn's IPO	429,000	429,000	429,000	429,000
Warrants to purchase Common Stock, from Jensyn's IPO	2,292,250	2,292,250	2,292,250	2,292,250
Warrants to purchase Common Stock, from Solar Project Partners, LLC. Exchange and Subscription Agreement	275,000		275,000
Conversion of Preferred Stock to Common Stock from GreenSeed Investors, LLC Exchange and Subscription Agreement	200,000		200,000

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Preferred Stock (Details Narrative) - USD ($)		6 Months Ended
	Apr. 22, 2020	Jun. 30, 2020	Dec. 31, 2019
Preferred stock, shares designated		1,000,000	1,000,000
GreenSeed Investors, LLC [Member]
Conversion price		$ 15.00
Conversion description		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
Liquidation price per share		$ 25.00
Redemption price per sahre		27.50
GreenSeed Investors, LLC [Member] | Board of Directors [Member]
Dividends rate		$ 2.00
Exchange Agreement [Member] | GreenSeed Investors, LLC [Member]
Number of exchange shares	100,000
Warrant to acquire	275,000
Warrants exercise price	$ 15.00
Number of repurchase shares	$ 400,000
Number of repurchase shares, value	4,000,000
Exchange Agreement [Member] | GreenSeed Investors, LLC [Member] | Tranches [Member]
Number of repurchase shares	$ 50,000
Exchange Agreement [Member] | GreenSeed Investors, LLC [Member] | Class B Preferred [Member]
Number of common stock shares issued	500,000
Exchange Agreement [Member] | GreenSeed Investors, LLC [Member] | Series A Preferred Stock [Member]
Number of common stock shares issued	200,000