false Q3 --12-31 0001576197 P7Y 0001576197 2023-01-01 2023-09-30 0001576197 2023-11-13 0001576197 2023-09-30 0001576197 2022-12-31 0001576197 SENR:NoteAgreementsMember 2023-09-30 0001576197 SENR:NoteAgreementsMember 2022-12-31 0001576197 2023-07-01 2023-09-30 0001576197 2022-07-01 2022-09-30 0001576197 2022-01-01 2022-09-30 0001576197 us-gaap:ProductMember 2023-07-01 2023-09-30 0001576197 us-gaap:ProductMember 2022-07-01 2022-09-30 0001576197 us-gaap:ProductMember 2023-01-01 2023-09-30 0001576197 us-gaap:ProductMember 2022-01-01 2022-09-30 0001576197 SENR:SolidWasteMember 2023-07-01 2023-09-30 0001576197 SENR:SolidWasteMember 2022-07-01 2022-09-30 0001576197 SENR:SolidWasteMember 2023-01-01 2023-09-30 0001576197 SENR:SolidWasteMember 2022-01-01 2022-09-30 0001576197 us-gaap:PreferredStockMember 2022-12-31 0001576197 us-gaap:CommonStockMember 2022-12-31 0001576197 us-gaap:AdditionalPaidInCapitalMember 2022-12-31 0001576197 SENR:CommonStockSubscribedMember 2022-12-31 0001576197 SENR:StockSubscriptionReceivableMember 2022-12-31 0001576197 us-gaap:RetainedEarningsMember 2022-12-31 0001576197 us-gaap:NoncontrollingInterestMember 2022-12-31 0001576197 us-gaap:PreferredStockMember 2023-03-31 0001576197 us-gaap:CommonStockMember 2023-03-31 0001576197 us-gaap:AdditionalPaidInCapitalMember 2023-03-31 0001576197 SENR:CommonStockSubscribedMember 2023-03-31 0001576197 SENR:StockSubscriptionReceivableMember 2023-03-31 0001576197 us-gaap:RetainedEarningsMember 2023-03-31 0001576197 us-gaap:NoncontrollingInterestMember 2023-03-31 0001576197 2023-03-31 0001576197 us-gaap:PreferredStockMember 2023-06-30 0001576197 us-gaap:CommonStockMember 2023-06-30 0001576197 us-gaap:AdditionalPaidInCapitalMember 2023-06-30 0001576197 SENR:CommonStockSubscribedMember 2023-06-30 0001576197 SENR:StockSubscriptionReceivableMember 2023-06-30 0001576197 us-gaap:RetainedEarningsMember 2023-06-30 0001576197 us-gaap:NoncontrollingInterestMember 2023-06-30 0001576197 2023-06-30 0001576197 us-gaap:PreferredStockMember 2021-12-31 0001576197 us-gaap:CommonStockMember 2021-12-31 0001576197 us-gaap:AdditionalPaidInCapitalMember 2021-12-31 0001576197 SENR:CommonStockSubscribedMember 2021-12-31 0001576197 SENR:StockSubscriptionReceivableMember 2021-12-31 0001576197 us-gaap:RetainedEarningsMember 2021-12-31 0001576197 us-gaap:NoncontrollingInterestMember 2021-12-31 0001576197 2021-12-31 0001576197 us-gaap:PreferredStockMember 2022-03-31 0001576197 us-gaap:CommonStockMember 2022-03-31 0001576197 us-gaap:AdditionalPaidInCapitalMember 2022-03-31 0001576197 SENR:CommonStockSubscribedMember 2022-03-31 0001576197 SENR:StockSubscriptionReceivableMember 2022-03-31 0001576197 us-gaap:RetainedEarningsMember 2022-03-31 0001576197 us-gaap:NoncontrollingInterestMember 2022-03-31 0001576197 2022-03-31 0001576197 us-gaap:PreferredStockMember 2022-06-30 0001576197 us-gaap:CommonStockMember 2022-06-30 0001576197 us-gaap:AdditionalPaidInCapitalMember 2022-06-30 0001576197 SENR:CommonStockSubscribedMember 2022-06-30 0001576197 SENR:StockSubscriptionReceivableMember 2022-06-30 0001576197 us-gaap:RetainedEarningsMember 2022-06-30 0001576197 us-gaap:NoncontrollingInterestMember 2022-06-30 0001576197 2022-06-30 0001576197 us-gaap:PreferredStockMember 2023-01-01 2023-03-31 0001576197 us-gaap:CommonStockMember 2023-01-01 2023-03-31 0001576197 us-gaap:AdditionalPaidInCapitalMember 2023-01-01 2023-03-31 0001576197 SENR:CommonStockSubscribedMember 2023-01-01 2023-03-31 0001576197 SENR:StockSubscriptionReceivableMember 2023-01-01 2023-03-31 0001576197 us-gaap:RetainedEarningsMember 2023-01-01 2023-03-31 0001576197 us-gaap:NoncontrollingInterestMember 2023-01-01 2023-03-31 0001576197 2023-01-01 2023-03-31 0001576197 us-gaap:PreferredStockMember 2023-04-01 2023-06-30 0001576197 us-gaap:CommonStockMember 2023-04-01 2023-06-30 0001576197 us-gaap:AdditionalPaidInCapitalMember 2023-04-01 2023-06-30 0001576197 SENR:CommonStockSubscribedMember 2023-04-01 2023-06-30 0001576197 SENR:StockSubscriptionReceivableMember 2023-04-01 2023-06-30 0001576197 us-gaap:RetainedEarningsMember 2023-04-01 2023-06-30 0001576197 us-gaap:NoncontrollingInterestMember 2023-04-01 2023-06-30 0001576197 2023-04-01 2023-06-30 0001576197 us-gaap:PreferredStockMember 2023-07-01 2023-09-30 0001576197 us-gaap:CommonStockMember 2023-07-01 2023-09-30 0001576197 us-gaap:AdditionalPaidInCapitalMember 2023-07-01 2023-09-30 0001576197 SENR:CommonStockSubscribedMember 2023-07-01 2023-09-30 0001576197 SENR:StockSubscriptionReceivableMember 2023-07-01 2023-09-30 0001576197 us-gaap:RetainedEarningsMember 2023-07-01 2023-09-30 0001576197 us-gaap:NoncontrollingInterestMember 2023-07-01 2023-09-30 0001576197 us-gaap:PreferredStockMember 2022-01-01 2022-03-31 0001576197 us-gaap:CommonStockMember 2022-01-01 2022-03-31 0001576197 us-gaap:AdditionalPaidInCapitalMember 2022-01-01 2022-03-31 0001576197 SENR:CommonStockSubscribedMember 2022-01-01 2022-03-31 0001576197 SENR:StockSubscriptionReceivableMember 2022-01-01 2022-03-31 0001576197 us-gaap:RetainedEarningsMember 2022-01-01 2022-03-31 0001576197 us-gaap:NoncontrollingInterestMember 2022-01-01 2022-03-31 0001576197 2022-01-01 2022-03-31 0001576197 us-gaap:PreferredStockMember 2022-04-01 2022-06-30 0001576197 us-gaap:CommonStockMember 2022-04-01 2022-06-30 0001576197 us-gaap:AdditionalPaidInCapitalMember 2022-04-01 2022-06-30 0001576197 SENR:CommonStockSubscribedMember 2022-04-01 2022-06-30 0001576197 SENR:StockSubscriptionReceivableMember 2022-04-01 2022-06-30 0001576197 us-gaap:RetainedEarningsMember 2022-04-01 2022-06-30 0001576197 us-gaap:NoncontrollingInterestMember 2022-04-01 2022-06-30 0001576197 2022-04-01 2022-06-30 0001576197 us-gaap:PreferredStockMember 2022-07-01 2022-09-30 0001576197 us-gaap:CommonStockMember 2022-07-01 2022-09-30 0001576197 us-gaap:AdditionalPaidInCapitalMember 2022-07-01 2022-09-30 0001576197 SENR:CommonStockSubscribedMember 2022-07-01 2022-09-30 0001576197 SENR:StockSubscriptionReceivableMember 2022-07-01 2022-09-30 0001576197 us-gaap:RetainedEarningsMember 2022-07-01 2022-09-30 0001576197 us-gaap:NoncontrollingInterestMember 2022-07-01 2022-09-30 0001576197 us-gaap:PreferredStockMember 2023-09-30 0001576197 us-gaap:CommonStockMember 2023-09-30 0001576197 us-gaap:AdditionalPaidInCapitalMember 2023-09-30 0001576197 SENR:CommonStockSubscribedMember 2023-09-30 0001576197 SENR:StockSubscriptionReceivableMember 2023-09-30 0001576197 us-gaap:RetainedEarningsMember 2023-09-30 0001576197 us-gaap:NoncontrollingInterestMember 2023-09-30 0001576197 us-gaap:PreferredStockMember 2022-09-30 0001576197 us-gaap:CommonStockMember 2022-09-30 0001576197 us-gaap:AdditionalPaidInCapitalMember 2022-09-30 0001576197 SENR:CommonStockSubscribedMember 2022-09-30 0001576197 SENR:StockSubscriptionReceivableMember 2022-09-30 0001576197 us-gaap:RetainedEarningsMember 2022-09-30 0001576197 us-gaap:NoncontrollingInterestMember 2022-09-30 0001576197 2022-09-30 0001576197 SENR:ParagonWasteSolutionsLLCMember 2023-09-30 0001576197 SENR:PelleCharLLCMember 2023-09-30 0001576197 SENR:BenefuelsLLCMember 2023-09-30 0001576197 SENR:EnvironmentalSolutionsMember SENR:ProductSalesMember 2023-07-01 2023-09-30 0001576197 SENR:SolidWasteMember SENR:ProductSalesMember 2023-07-01 2023-09-30 0001576197 SENR:ProductSalesMember 2023-07-01 2023-09-30 0001576197 SENR:EnvironmentalSolutionsMember SENR:MediaSalesMember 2023-07-01 2023-09-30 0001576197 SENR:SolidWasteMember SENR:MediaSalesMember 2023-07-01 2023-09-30 0001576197 SENR:MediaSalesMember 2023-07-01 2023-09-30 0001576197 SENR:EnvironmentalSolutionsMember 2023-07-01 2023-09-30 0001576197 SENR:SolidWasteMember 2023-07-01 2023-09-30 0001576197 SENR:EnvironmentalSolutionsMember SENR:ProductSalesMember 2022-07-01 2022-09-30 0001576197 SENR:SolidWasteMember SENR:ProductSalesMember 2022-07-01 2022-09-30 0001576197 SENR:ProductSalesMember 2022-07-01 2022-09-30 0001576197 SENR:EnvironmentalSolutionsMember SENR:MediaSalesMember 2022-07-01 2022-09-30 0001576197 SENR:SolidWasteMember SENR:MediaSalesMember 2022-07-01 2022-09-30 0001576197 SENR:MediaSalesMember 2022-07-01 2022-09-30 0001576197 SENR:EnvironmentalSolutionsMember SENR:ManagementFeesMember 2022-07-01 2022-09-30 0001576197 SENR:SolidWasteMember SENR:ManagementFeesMember 2022-07-01 2022-09-30 0001576197 SENR:ManagementFeesMember 2022-07-01 2022-09-30 0001576197 SENR:EnvironmentalSolutionsMember 2022-07-01 2022-09-30 0001576197 SENR:SolidWasteMember 2022-07-01 2022-09-30 0001576197 SENR:EnvironmentalSolutionsMember SENR:ProductSalesMember 2023-01-01 2023-09-30 0001576197 SENR:SolidWasteMember SENR:ProductSalesMember 2023-01-01 2023-09-30 0001576197 SENR:ProductSalesMember 2023-01-01 2023-09-30 0001576197 SENR:EnvironmentalSolutionsMember SENR:MediaSalesMember 2023-01-01 2023-09-30 0001576197 SENR:SolidWasteMember SENR:MediaSalesMember 2023-01-01 2023-09-30 0001576197 SENR:MediaSalesMember 2023-01-01 2023-09-30 0001576197 SENR:EnvironmentalSolutionsMember 2023-01-01 2023-09-30 0001576197 SENR:SolidWasteMember 2023-01-01 2023-09-30 0001576197 SENR:EnvironmentalSolutionsMember SENR:ProductSalesMember 2022-01-01 2022-09-30 0001576197 SENR:SolidWasteMember SENR:ProductSalesMember 2022-01-01 2022-09-30 0001576197 SENR:ProductSalesMember 2022-01-01 2022-09-30 0001576197 SENR:EnvironmentalSolutionsMember SENR:MediaSalesMember 2022-01-01 2022-09-30 0001576197 SENR:SolidWasteMember SENR:MediaSalesMember 2022-01-01 2022-09-30 0001576197 SENR:MediaSalesMember 2022-01-01 2022-09-30 0001576197 SENR:EnvironmentalSolutionsMember SENR:ManagementFeesMember 2022-01-01 2022-09-30 0001576197 SENR:SolidWasteMember SENR:ManagementFeesMember 2022-01-01 2022-09-30 0001576197 SENR:ManagementFeesMember 2022-01-01 2022-09-30 0001576197 SENR:EnvironmentalSolutionsMember 2022-01-01 2022-09-30 0001576197 SENR:SolidWasteMember 2022-01-01 2022-09-30 0001576197 SENR:NextTwelveMonthsMember 2023-09-30 0001576197 SENR:FieldAndShopEquipmentMember 2023-09-30 0001576197 SENR:FieldAndShopEquipmentMember 2022-12-31 0001576197 us-gaap:VehiclesMember 2023-09-30 0001576197 us-gaap:VehiclesMember 2022-12-31 0001576197 SENR:WasteDestructionEquipmentMember 2023-09-30 0001576197 SENR:WasteDestructionEquipmentMember 2022-12-31 0001576197 SENR:FurnitureAndOfficeEquipmentMember 2023-09-30 0001576197 SENR:FurnitureAndOfficeEquipmentMember 2022-12-31 0001576197 us-gaap:LeaseholdImprovementsMember 2023-09-30 0001576197 us-gaap:LeaseholdImprovementsMember 2022-12-31 0001576197 us-gaap:BuildingImprovementsMember 2023-09-30 0001576197 us-gaap:BuildingImprovementsMember 2022-12-31 0001576197 us-gaap:LandMember 2023-09-30 0001576197 us-gaap:LandMember 2022-12-31 0001576197 us-gaap:CostOfSalesMember 2023-07-01 2023-09-30 0001576197 us-gaap:CostOfSalesMember 2022-07-01 2022-09-30 0001576197 us-gaap:SellingGeneralAndAdministrativeExpensesMember 2023-07-01 2023-09-30 0001576197 us-gaap:SellingGeneralAndAdministrativeExpensesMember 2022-07-01 2022-09-30 0001576197 us-gaap:CostOfSalesMember 2023-01-01 2023-09-30 0001576197 us-gaap:CostOfSalesMember 2022-01-01 2022-09-30 0001576197 us-gaap:SellingGeneralAndAdministrativeExpensesMember 2023-01-01 2023-09-30 0001576197 us-gaap:SellingGeneralAndAdministrativeExpensesMember 2022-01-01 2022-09-30 0001576197 us-gaap:GoodwillMember 2023-09-30 0001576197 us-gaap:GoodwillMember 2023-01-01 2023-09-30 0001576197 us-gaap:CustomerListsMember 2023-09-30 0001576197 us-gaap:CustomerListsMember 2023-01-01 2023-09-30 0001576197 us-gaap:TechnologyBasedIntangibleAssetsMember 2023-09-30 0001576197 us-gaap:TechnologyBasedIntangibleAssetsMember 2023-01-01 2023-09-30 0001576197 us-gaap:TradeNamesMember 2023-09-30 0001576197 us-gaap:TradeNamesMember 2023-01-01 2023-09-30 0001576197 us-gaap:GoodwillMember 2022-12-31 0001576197 us-gaap:GoodwillMember 2022-01-01 2022-12-31 0001576197 us-gaap:CustomerListsMember 2022-12-31 0001576197 us-gaap:CustomerListsMember 2022-01-01 2022-12-31 0001576197 us-gaap:TechnologyBasedIntangibleAssetsMember 2022-12-31 0001576197 us-gaap:TechnologyBasedIntangibleAssetsMember 2022-01-01 2022-12-31 0001576197 us-gaap:TradeNamesMember 2022-12-31 0001576197 us-gaap:TradeNamesMember 2022-01-01 2022-12-31 0001576197 2022-01-01 2022-12-31 0001576197 srt:MinimumMember 2023-09-30 0001576197 srt:MaximumMember 2023-09-30 0001576197 SENR:ParagonWasteSolutionsLLCMember 2023-01-01 2023-09-30 0001576197 SENR:ParagonSouthwestMedicalWasteMember 2022-07-20 0001576197 SENR:AmlonHoldingsMember 2023-06-30 0001576197 SENR:ShortTermNotesMember 2022-12-31 0001576197 SENR:ConvertibleNotesUnsecuredMember 2022-12-31 0001576197 SENR:CurrentPortionOfLongTermDebtMember 2022-12-31 0001576197 SENR:LongTermDebtsMember 2022-12-31 0001576197 SENR:ShortTermNotesMember 2023-01-01 2023-09-30 0001576197 SENR:ConvertibleNotesUnsecuredMember 2023-01-01 2023-09-30 0001576197 SENR:CurrentPortionOfLongTermDebtMember 2023-01-01 2023-09-30 0001576197 SENR:LongTermDebtsMember 2023-01-01 2023-09-30 0001576197 SENR:ShortTermNotesMember 2023-09-30 0001576197 SENR:ConvertibleNotesUnsecuredMember 2023-09-30 0001576197 SENR:CurrentPortionOfLongTermDebtMember 2023-09-30 0001576197 SENR:LongTermDebtsMember 2023-09-30 0001576197 SENR:SecuredNotePayableMember 2023-01-20 0001576197 SENR:SecuredNotePayableMember 2023-01-20 2023-01-20 0001576197 SENR:SecuredNotePayableMember 2023-01-01 2023-09-30 0001576197 SENR:SecuredNotePayableMember srt:SubsidiariesMember 2023-03-10 0001576197 SENR:SecuredNotePayableMember srt:SubsidiariesMember 2023-03-10 2023-03-10 0001576197 SENR:SecuredNotePayableMember srt:SubsidiariesMember 2023-01-01 2023-09-30 0001576197 SENR:SecuredNotePayableOneMember srt:SubsidiariesMember 2023-05-16 0001576197 SENR:SecuredNotePayableOneMember srt:SubsidiariesMember 2023-05-16 2023-05-16 0001576197 SENR:SecuredNotePayableOneMember srt:SubsidiariesMember 2023-01-01 2023-09-30 0001576197 SENR:SecuredNotesMember 2023-09-30 0001576197 SENR:UnsecuredNotesPayableMember 2023-09-30 0001576197 us-gaap:RelatedPartyMember 2023-09-30 0001576197 us-gaap:RelatedPartyMember 2022-12-31 0001576197 us-gaap:SalesRevenueNetMember SENR:FourAndThreeCustomersMember us-gaap:CustomerConcentrationRiskMember 2023-01-01 2023-09-30 0001576197 us-gaap:SalesRevenueNetMember SENR:FourAndThreeCustomersMember us-gaap:CustomerConcentrationRiskMember 2022-01-01 2022-09-30 0001576197 us-gaap:WarrantMember 2023-01-01 2023-09-30 0001576197 us-gaap:WarrantMember 2022-01-01 2022-09-30 0001576197 SENR:OptionsMember 2023-01-01 2023-09-30 0001576197 SENR:OptionsMember 2022-01-01 2022-09-30 0001576197 SENR:ConvertibleNotesPayableIncludingAccruedInterestMember 2023-01-01 2023-09-30 0001576197 SENR:ConvertibleNotesPayableIncludingAccruedInterestMember 2022-01-01 2022-09-30 0001576197 SENR:EnvironmentalSolutionsMember us-gaap:OperatingSegmentsMember 2023-07-01 2023-09-30 0001576197 SENR:SolidWasteMember us-gaap:OperatingSegmentsMember 2023-07-01 2023-09-30 0001576197 us-gaap:CorporateMember us-gaap:OperatingSegmentsMember 2023-07-01 2023-09-30 0001576197 us-gaap:OperatingSegmentsMember 2023-07-01 2023-09-30 0001576197 SENR:EnvironmentalSolutionsMember us-gaap:OperatingSegmentsMember 2023-09-30 0001576197 SENR:SolidWasteMember us-gaap:OperatingSegmentsMember 2023-09-30 0001576197 us-gaap:CorporateMember us-gaap:OperatingSegmentsMember 2023-09-30 0001576197 us-gaap:OperatingSegmentsMember 2023-09-30 0001576197 SENR:EnvironmentalSolutionsMember us-gaap:OperatingSegmentsMember 2022-07-01 2022-09-30 0001576197 SENR:SolidWasteMember us-gaap:OperatingSegmentsMember 2022-07-01 2022-09-30 0001576197 us-gaap:CorporateMember us-gaap:OperatingSegmentsMember 2022-07-01 2022-09-30 0001576197 us-gaap:OperatingSegmentsMember 2022-07-01 2022-09-30 0001576197 SENR:EnvironmentalSolutionsMember us-gaap:OperatingSegmentsMember 2022-09-30 0001576197 SENR:SolidWasteMember us-gaap:OperatingSegmentsMember 2022-09-30 0001576197 us-gaap:CorporateMember us-gaap:OperatingSegmentsMember 2022-09-30 0001576197 us-gaap:OperatingSegmentsMember 2022-09-30 0001576197 SENR:EnvironmentalSolutionsMember us-gaap:OperatingSegmentsMember 2023-01-01 2023-09-30 0001576197 SENR:SolidWasteMember us-gaap:OperatingSegmentsMember 2023-01-01 2023-09-30 0001576197 us-gaap:CorporateMember us-gaap:OperatingSegmentsMember 2023-01-01 2023-09-30 0001576197 us-gaap:OperatingSegmentsMember 2023-01-01 2023-09-30 0001576197 SENR:EnvironmentalSolutionsMember us-gaap:OperatingSegmentsMember 2022-01-01 2022-09-30 0001576197 SENR:SolidWasteMember us-gaap:OperatingSegmentsMember 2022-01-01 2022-09-30 0001576197 us-gaap:CorporateMember us-gaap:OperatingSegmentsMember 2022-01-01 2022-09-30 0001576197 us-gaap:OperatingSegmentsMember 2022-01-01 2022-09-30 iso4217:USD xbrli:shares iso4217:USD xbrli:shares xbrli:pure

 

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 10-Q

 

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

 

For the quarterly period ended September 30, 2023

 

OR

 

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

 

For the transition period from ___________________________

 

000-54987

(Commission File Number)

 

Strategic Environmental & Energy Resources, Inc.

(Exact name of registrant as specified in its charter)

 

Nevada   02-0565834

(State or other jurisdiction

of incorporation)

  

(IRS Employer

Identification Number)

 

370 Interlocken Blvd, Suite 680, Broomfield, CO 80021

(Address of principal executive offices including zip code)

 

303-277-1625

(Registrant’s telephone number, including area code)

 

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

 

Title of each class   Trading Symbol(s)   Name of each exchange on which registered
N/A   N/A   N/A

 

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 filing requirements for the past 90 days. Yes ☒ No ☐

 

Indicate by check mark whether the registrant has submitted electronically every Interactive Date File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the Registrant was required to submit and post such files). Yes ☒ No ☐

 

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

 

Large accelerated filer ☐ Accelerated filer ☐ Emerging growth company ☐
     
Non-accelerated filer ☐ Smaller reporting company ☒  

 

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

 

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

 

As of November 13, 2023, the Registrant had 65,088,575 shares outstanding of its $.001 par value common stock.

 

 

 

 
 

 

TABLE OF CONTENTS

 

PART I. FINANCIAL INFORMATION  
     
Item 1. Financial Statements  
     
  Condensed Consolidated Balance Sheets as of September 30, 2023 (unaudited) and December 31, 2022 3
     
  Condensed Consolidated Statements of Operations for the Three and Nine Months Ended September 30, 2023, and 2022 (unaudited) 4
     
  Condensed Consolidated Statement of Changes in Stockholders’ Deficit as of September 30, 2023, and 2022 (unaudited) 5
     
  Condensed Consolidated Statements of Cash Flows for the Three and Nine Months Ended September 30, 2023, and 2022 (unaudited) 6
     
  Notes to Unaudited Condensed Consolidated Financial Statements 7
     
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations 19
     
Item 3. Quantitative and Qualitative Disclosures About Market Risk 25
     
Item 4. Controls and Procedures 25
     
PART II. OTHER INFORMATION  
     
Item 1. Legal Proceedings 26
     
Item 1A. Risk Factors 26
     
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 26
     
Item 3. Defaults Upon Senior Securities 27
     
Item 4. Mine Safety Disclosures 28
     
Item 5. Other Information 29
     
Item 6. Exhibits 29
     
SIGNATURES 30

 

2
 

 

Part I. FINANCIAL INFORMATION

 

Item 1. Financial Statements

 

STRATEGIC ENVIRONMENTAL & ENERGY RESOURCES, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

 

   September 30,   December 31,* 
   2023   2022 
   (unaudited)   * 
ASSETS          
Current Assets          
Cash and cash equivalents  $49,900   $21,500 
Accounts receivable, net of allowance for credit losses of $168,300   390,800    640,500 
Inventory   16,400    9,400 
Contract assets   17,300    138,700 
Prepaid expenses and other current assets   87,100    85,800 
Assets held for sale   54,300    217,200 
Total Current Assets   615,800    1,113,100 
           
Property and equipment, net   23,900    38,600 
Intangible Assets, net   18,600    20,700 
Right of use assets   206,500    249,700 
Investments   182,200    182,200 
Other assets   40,000    40,100 
           
TOTAL ASSETS  $1,087,000   $1,644,400 
           
LIABILITIES AND STOCKHOLDERS’ DEFICIT          
           
Current Liabilities          
Accounts payable  $753,900   $1,044,700 
Accrued liabilities   3,564,000    2,953,800 
Contract liabilities   656,800    536,000 
Deferred revenue   14,600    - 
Short term notes   4,248,200    3,518,000 
Short term notes and accrued interest - related party   194,200    184,000 
Convertible notes   1,605,000    1,605,000 
Current portion of long term debt and capital lease obligations   504,400    504,300 
Current portion of lease liabilities   70,000    63,100 
Liabilities held for sale   54,000    85,500 
Total Current Liabilities   11,665,100    10,494,400 
           
Lease liabilities net of current portion   164,400    217,400 
Long term debt   1,837,200    1,840,600 
Total Liabilities   13,666,700    12,552,400 
           
Commitments and contingencies   -    - 
           
Stockholders’ deficit          
Preferred stock; $.001 par value; 5,000,000 shares authorized; -0- shares issued   -    - 
Common stock; $.001 par value; 70,000,000 shares authorized; 65,088,575 shares issued, issuable* and outstanding September 30, 2023  and December 31, 2022   65,100    65,100 
Common stock issuable   25,000    25,000 
Additional paid-in capital   22,973,800    22,973,800 
Stock Subscription receivable   (25,000)   (25,000)
Accumulated deficit   (33,675,300)   (32,005,100)
Total stockholders’ deficit   (10,636,400)   (8,966,200)
Non-controlling interest   (1,943,300)   (1,941,800)
Total Deficit   (12,579,700)   (10,908,000)
TOTAL LIABILITIES AND STOCKHOLDERS’ DEFICIT  $1,087,000   $1,644,400 

 

* Derived from audited information
** Includes 2,785,000 shares issuable as of September 30, 2023, and December 31, 2022, per terms of note agreements.

 

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

 

3
 

 

STRATEGIC ENVIRONMENTAL & ENERGY RESOURCES, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

 

   2023   2022   2023   2022 
   For the Three Months Ended September 30,   For the Nine Months Ended September 30, 
   2023   2022   2023   2022 
Revenue:                    
Products  $870,300   $1,142,400   $2,154,700   $2,952,100 
Solid waste   -    -    -    100,000 
Total revenue   870,300    1,142,400    2,154,700    3,052,100 
                     
Operating expenses:                    
Products costs   594,500    876,300    1,578,400    2,232,800 
Solid waste costs   -    -    -    14,800 
General and administrative expenses   194,400    223,700    852,500    776,000 
Salaries and related expenses   312,900    257,400    921,500    916,600 
Total operating expenses   1,101,800    1,357,400    3,352,400    3,940,200 
                     
Loss from operations   (231,500)   (215,000)   (1,197,700)   (888,100)
                     
Other income (expense):                    
Interest expense   (222,400)   (197,600)   (654,000)   (575,200)
Gain on debt extinguishment   -    -    -    96,600 
Other income (expense)   -    100    20,100    77,500 
Total non-operating expense, net   (222,400)   (197,500)   (633,900)   (401,100)
                     
Loss from continuing operations   (453,900)   (412,500)   (1,831,600)   (1,289,200)
                     
Income (loss) from discontinued operations, net of tax   (400)   (197,800)   159,900    (253,100)
                     
Net Loss   (454,300)   (610,300)   (1,671,700)   (1,542,300)
                     
Less: Net income (loss) attributable to non-controlling interest   (2,200)   (10,800)   (1,500)   (33,000)
                     
Net Loss attributable to SEER common stockholders  $(452,100)  $(599,500)  $(1,670,200)  $(1,509,300)
Basic earnings per share attributable to SEER common stockholders                    
Loss from continuing operations, per share  $(0.01)  $(0.01)  $(0.03)  $(0.02)
Income from discontinued operations, per share   (0.00)   (0.00)   0.00    (0.00)
Net Loss per share, basic  $(0.01)  $(0.01)  $(0.03)  $(0.02)
                     
Fully diluted earnings per share attributable to SEER common stockholders                    
Loss from continuing operations, per share   (0.01)   (0.01)   (0.03)   (0.02)
Income from discontinued operations, per share   (0.00)   (0.00)   0.00    (0.00)
Net Loss per share, basic  $(0.01)  $(0.01)  $(0.03)  $(0.02)
                     
Weighted average shares outstanding – basic   65,088,575    65,088,575    65,088,575    65,088,575 
Weighted average shares outstanding – diluted   65,088,575    65,088,575    65,088,575    65,088,575 

 

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

 

4
 

 

STRATEGIC ENVIRONMENTAL & ENERGY RESOURCES, INC.

CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS’ DEFICIT

(Unaudited)

 

   Shares   Amount   Shares   Amount   Capital   Subscribed   Receivable   Deficit   Interest   Deficit 
   Preferred Stock   Common Stock  

Additional

Paid-in

   Common Stock   Stock Subscription   Accumulated  

Non-

controller

   Total Stockholders’ 
   Shares   Amount   Shares   Amount   Capital   Subscribed   Receivable   Deficit   Interest   Deficit 
                                         
Balances at December 31, 2022   -    -    65,088,600    65,100    22,973,800    25,000    (25,000)   (32,005,100)   (1,941,800)   (10,908,000)
                                                   
Net income (loss)           -                  -    -    -    -              -               -    (779,400)   2,800    (776,600)
                                                   
Balances at March 31, 2023   -    -    65,088,600    65,100    22,973,800    25,000    (25,000)   (32,784,500)   (1,939,000)   (11,684,600)
                                                   
Net income (loss)   -    -    -    -    -    -    -    (438,700)   (2,100)   (440,800)
                                                   
Balances at June 30, 2023   -    -    65,088,600    65,100    22,973,800    25,000    (25,000)   (33,223,200)   (1,941,100)   (12,125,400)
                                                   
Net income (loss)   -    -    -    -    -    -    -    (452,100)   (2,200)   (454,300)
                                                   
Balances at September 30, 2023   -   $-    65,088,600   $65,100   $22,973,800   $25,000   $(25,000)  $(33,675,300)  $(1,943,300)  $(12,579,700)

 

   Preferred Stock   Common Stock  

Additional

Paid-in

   Common Stock   Stock Subscription   Accumulated  

Non-

controller

  

Total

Stockholders’

 
   Shares   Amount   Shares   Amount   Capital   Subscribed   Receivable   Deficit   Interest   Deficit 
                                         
Balances at December 31, 2021   -   $-    65,088,600   $65,100   $22,973,800   $25,000   $(25,000)  $(29,364,800)  $(1,870,600)  $(8,196,500)
                                                   
Net income (loss)       -             -    -    -    -         -                     -    (386,600)   (4,100)   (390,700)
                                                   
Balances at March 31, 2022   -    -    65,088,600    65,100    22,973,800    25,000    (25,000)   (29,751,400)   (1,874,700)   (8,587,200)
                                                   
Net income (loss)   -    -    -    -    -    -    -    (523,100)   (18,200)   (541,300)
                                                   
Balances at June 30, 2022   -    -    65,088,600    65,100    22,973,800    25,000    (25,000)   (30,274,500)   (1,892,900)   (9,128,500)
                                                   
Net income (loss)   -    -    -    -    -    -    -    (599,500)   (10,800)   (610,300)
                                                   
Balances at September 30, 2022   -   $-    65,088,600   $65,100   $22,973,800   $25,000   $(25,000)  $(30,874,000)  $(1,903,700)  $(9,738,800)

 

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

 

5
 

 

STRATEGIC ENVIRONMENTAL & ENERGY RESOURCES, INC.

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS

(Unaudited)

 

   2023   2022 
   For the Nine Months Ended September 30, 
   2023   2022 
Cash flows from operating activities:          
Loss from continuing operations  $(1,831,600)  $(1,289,200)
Loss from discontinued operations   159,900    (253,100)
Net Loss   (1,671,700)   (1,542,300)
           
Adjustments to reconcile net loss to net cash provided by operating activities:          
Depreciation and amortization   16,800    76,600 
Gain on sale of assets held for sale   (175,600)   - 
Gain on debt distinguishment   -    (96,600)
Bad debt   (10,900)   19,800 
Changes in operating assets and liabilities:          
Accounts receivable   260,600    (351,100)
Contract assets   121,400    (72,800)
Inventory   (7,000)   179,400 
Prepaid expenses and other assets   93,200    29,800 
Accounts payable, accrued liabilities, and customer deposits   350,300    893,900 
Contract liabilities   120,800    (5,500)
Deferred revenue   14,600    9,700 
Assets and Liabilities held for sale   (31,500)   - 
           
Net cash used in operating activities   (919,000)   (859,100)
Cash flows from investing activities:          
Purchase of property and equipment   -    (31,800)
Proceeds from the sale of assets held for sale   338,500    - 
Net cash (used) provided by investing activities   338,500    (31,800)
Cash flows from financing activities:          
Payments of notes and capital lease obligations   (241,100)   (71,800)
Proceeds from short-term and long-term debt   850,000    919,300 
           
Net cash provided by financing activities   608,900    847,500 
Effect of exchange rate changes on cash   -      
Net increase (decrease) in cash   28,400    (43,400)
Cash at the beginning of period   21,500    188,800 
Cash at the end of period  $49,900   $145,400 
           
Supplemental disclosures of cash flow information:          
Cash paid for interest  $23,500   $34,600 
Investment in PSMW  $-   $182,200 
Financing of prepaid insurance premiums  $51,100   $36,800 
Non-cash repayment of debt  $-   $50,800 
Non-cash repayment of debt - PPP Loan  $-   $96,600 
Non-cash payment of interest  $-   $15,400 

 

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

 

6
 

 

NOTE 1 – ORGANIZATION AND FINANCIAL CONDITION

 

Organization and Going Concern

 

Strategic Environmental & Energy Resources, Inc. (“SEER,” or the “Company”), a Nevada corporation, is a provider of next-generation clean-technologies, waste management innovations and related services. SEER has two wholly owned operating subsidiaries and three majority-owned subsidiaries; all of which together provide technology solutions and services to companies primarily in the oil and gas, refining, landfill, food, beverage & agriculture, and renewable fuel industries. The two wholly owned subsidiaries include: 1) MV, LLC (d/b/a MV Technologies) (“MV”), designs and builds biogas conditioning solutions for the production of renewable natural gas, odor control systems and natural gas vapor capture primarily for landfill operations, waste-water treatment facilities, oil and gas fields, refineries, municipalities and food, beverage & agriculture operations throughout the U.S.; 2) Strategic Environmental Materials, LLC, (“SEM”), is a materials technology company focused on development of cost-effective chemical absorbents. SEM was discontinued in 2023 due to its products not meeting customer requirements.

 

The three majority-owned subsidiaries are 1) Paragon Waste Solutions, LLC (“PWS”), 2) PelleChar, LLC (“PelleChar”), and 3) Benefuels, LLC (“Benefuels”). PWS is currently owned 54% by SEER, PelleChar is owned 51% by SEER, and Benefuels is owned 85% by SEER. Benefuels, focuses specifically on treating biogas for conversion to pipeline quality gas and/or compressed natural gas (“CNG”) for fleet vehicle fuel.

 

PWS developed specific opportunities to deploy and commercialize patented technologies for a non-thermal plasma-assisted oxidation process that makes possible the clean and efficient destruction of solid hazardous chemical and biological waste (i.e., regulated medical waste, chemicals, pharmaceuticals, and refinery tank waste, etc.) without landfilling or traditional incineration and without harmful emissions. Additionally, this technology “cleans” and conditions emissions and gaseous waste streams (i.e., volatile organic compounds and other greenhouse gases) generated from diverse sources such as refineries, oil fields, and many others. In July 2022, the Company exchanged its patents and related technology, to its joint venture, Paragon Southwest Medical Waste (“PSMW”), in exchange for units in PSMW. The Company exchanged its interest in PSMW for 2% of Amlon Holdings in June 2023 when PSMW was acquired by Amlon Holdings. (See Note 9)

 

PelleChar was established in September 2018 and is owned 51% by SEER. Pellechar has secured third-party pellet manufacturing capabilities from one of the nation’s premier pellet manufacturers. Working closely with Biochar Now, LLC, Pellechar commenced sales in late 2019 of its proprietary pellets containing the proven and superior Biochar Now product starting with the landscaping and big agriculture markets. At this time, Pellechar is the only company able to offer a soil amendment pellet containing the Biochar Now product that is produced using the patented pyrolytic process.

 

Principals of Consolidation

 

The accompanying consolidated financial statements include the accounts of SEER, its wholly owned subsidiaries, SEM, and MV, and its majority-owned subsidiaries PWS and PelleChar, since their respective acquisition or formation dates. All material intercompany accounts, transactions, and profits have been eliminated in consolidation. The Company has non-controlling interest in joint ventures, which are reported on the equity method.

 

Going Concern

 

As shown in the accompanying consolidated financial statements, the Company has experienced recurring losses, and has accumulated a deficit of approximately $33.7 million as of September 30, 2023, and $32.0 million as of December 31, 2022. For the nine months ended September 30, 2023, the Company incurred a net loss of approximately $1.7 million and for the nine months ended September 30, 2022, the Company incurred a net loss of approximately $1.5 million. The Company had a working capital deficit of approximately $11.0 million as of September 30, 2023, and a working capital deficit of $9.4 million as of December 31, 2022. These factors raise substantial doubt about the ability of the Company to continue to operate as a going concern.

 

7
 

 

Realization of a major portion of the Company’s assets as of September 30, 2023, is dependent upon continued operations. The Company is dependent on generating additional revenue or obtaining adequate capital to fund operating losses until it becomes profitable. For the nine months ended September 30, 2023, the Company raised approximately $0.9 million from the issuance of short-term and long-term debt, for a net cash provided by financing activities of approximately $0.6 million. In addition, the Company has undertaken a number of specific steps to continue to operate as a going concern. The Company continues to focus on developing organic growth in our operating companies and improving gross and net margins through increased attention to pricing, aggressive cost management and overhead reductions, including discontinuing SEM, a line of business with historically insufficient margins. The Company has limited common shares available for issue which may limit the ability to raise capital or settle debt through issuance of shares. The Company has increased business development efforts to address opportunities identified in expanding markets attributable to increased interest in energy conservation and emission control regulations. In addition, the Company is evaluating various forms of financing which may be available to it. There can be no assurance that the Company will secure additional financing for working capital, increase revenues and achieve the desired result of net income and positive cash flow from operations in future years. These financial statements do not give any effect to any adjustments that would be necessary should the Company be unable to report on a going concern basis.

 

Basis of Presentation Unaudited Interim Financial Information

 

The accompanying interim condensed consolidated financial statements are unaudited. In the opinion of management, the accompanying unaudited condensed consolidated financial statements contain all the normal recurring adjustments necessary to present fairly the financial position and results of operations as of and for the periods presented. The interim results are not necessarily indicative of the results to be expected for the full year or any future period.

 

Certain information and footnote disclosures normally included in the consolidated financial statements prepared in accordance with accounting principles generally accepted in the United States have been condensed or omitted pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). The Company believes that the disclosures are adequate to make the interim information presented not misleading. These consolidated financial statements should be read in conjunction with the Company’s audited consolidated financial statements and the notes thereto included in the Company’s Report on Form 10-K filed on April 14, 2023, for the year ended December 31, 2022.

 

NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

 

Use of Estimates

 

The preparation of these consolidated financial statements in conformity with accounting principles generally accepted in the United States (U.S. GAAP) requires management to make a number of estimates and assumptions related to the reported amount of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the period. Significant items subject to such estimates and assumptions include the forecasted cash flows used in the impairment testing of goodwill and intangible assets. The carrying amount of intangible assets; valuation allowances and reserves for receivables; revenue recognition related to contracts accounted for under the percentage of completion method; and the Company’s ability to continue as a going concern. Actual results could differ from those estimates.

 

Reclassifications

 

Certain amounts in the prior period financial statements have been reclassified to conform to the current period presentation. These reclassifications had no effect on reported consolidated net loss.

 

Revenue Recognition

 

In May 2014, the FASB issued guidance on revenue from contracts with customers that superseded most current revenue recognition guidance, including industry-specific guidance. The underlying principle of the guidance is to recognize revenue to depict the transfer of goods or services to customers at an amount to which the company expects to be entitled in exchange for those goods or services. The new guidance requires an evaluation of revenue arrangements with customers following a five-step approach: (1) identify the contract with a customer; (2) identify the performance obligations in the contract; (3) determine the transaction price; (4) allocate the transaction price to the performance obligations; and (5) recognize revenue when (or as) the company satisfies each performance obligation. Revenues are recognized when control of the promised services are transferred to the customers in an amount that reflects the expected consideration in exchange for those services. A customer obtains control when it has the ability to direct the use of and obtain the benefits from the services. Other major provisions of the guidance include capitalization of certain contract costs, consideration of the time value of money in the transaction price and allowing estimates of variable consideration to be recognized before contingencies are resolved in certain circumstances. The guidance also requires enhanced disclosures regarding the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. (See Note 3)

 

8
 

 

Research and Development

 

Research and development (“R&D”) costs are charged to expense as incurred. R&D expenses consist primarily of salaries, project materials, contract labor and other costs associated with ongoing product development and enhancement efforts. R&D expenses were $0 for both the nine months ended September 30, 2023, and 2022.

 

Inventories

 

Inventories are stated at the lower of cost or net realizable value on a first in, first out basis and includes the following amounts:

 

   September 30, 2023   December 31, 2022 
   (unaudited)     
Finished goods  $16,400   $9,400 
           
Inventory, net  $16,400   $9,400 

 

Income Taxes

 

The Company accounts for income taxes pursuant to Accounting Standards Codification (“ASC”) 740, Income Taxes, which utilizes the asset and liability method of computing deferred income taxes. The objective of this method is to establish deferred tax assets and liabilities for any temporary differences between the financial reporting basis and the tax basis of the Company’s assets and liabilities at enacted tax rates expected to be in effect when such amounts are realized or settled.

 

ASC 740 also provides detailed guidance for the financial statement recognition, measurement and disclosure of uncertain tax positions recognized in the financial statements. Tax positions must meet a “more-likely-than-not” recognition threshold at the effective date to be recognized. During the nine months ended September 30, 2023, and 2022 the Company recognized no adjustments for uncertain tax positions.

 

The Company recognizes interest and penalties related to uncertain tax positions in income tax expense. No interest and penalties related to uncertain tax positions were recognized as of September 30, 2023, and 2022. The Company expects no material changes to unrecognized tax positions within the next twelve months.

 

The Company has filed federal and state tax returns through December 31, 2022. The tax periods for the years ending December 31, 2020, through 2022 are open to examination by federal and state authorities.

 

NOTE 3 – REVENUE

 

Products Revenue

 

Product revenue generated from contracts with customers, for the manufacture of products for the removal and treatment of hazardous vapor and gases. Total estimated revenue includes all of the following: (1) the basic contract price, (2) contract options, and (3) change orders. Once contract performance is underway, the Company may experience changes in conditions, client requirements, specifications, designs, materials, and expectations regarding the period of performance. Such changes are “change orders” and may be initiated by us or by our clients. In many cases, agreement with the client as to the terms of change orders is reached prior to work commencing; however, sometimes circumstances require that work progress without obtaining client agreement. Revenue related to change orders is recognized as costs are incurred if it is probable that costs will be recovered by changing the contract price. The Company does not incur pre-contract costs. Under the new revenue recognition guidance, the Company found no change in the manner product revenue is recognized. Provisions for estimated losses on uncompleted contracts are recorded in the period in which the losses are identified and included as additional loss. Provisions for estimated losses on contracts are shown separately as liabilities on the balance sheet, if significant, except in circumstances in which related costs are accumulated on the balance sheet, in which case the provisions are deducted from the accumulated costs. A provision as a liability is reported as a current liability.

 

The Company includes in current assets and current liabilities amounts related to contracts realizable and payable. Costs and estimated earnings in excess of billings on uncompleted contracts represent the excess of contract costs and profits recognized to date over billings to date and are recognized as a current asset. Revenue contract liabilities represent the excess of billings to date over the amount of contract costs and profits recognized to date and are recognized as a current liability.

 

Products revenue also includes media sales which are recognized as the product is shipped to the customer for use.

 

9
 

 

Disaggregation of Revenue (Unaudited)

 

   Environmental Solutions   Solid Waste   Total 
   Three months ended September 30, 2023 
   Environmental Solutions   Solid Waste   Total 
             
Sources of Revenue               
Product sales  $673,100   $-   $673,100 
Media sales   197,200    -    197,200 
Total Revenue  $870,300   $          -   $870,300 

 

   Environmental Solutions   Solid Waste   Total 
   Three months ended September 30, 2022 
   Environmental Solutions   Solid Waste   Total 
             
Sources of Revenue               
Product sales   904,300    -    904,300 
Media sales   238,100    -    238,100 
Management fees   -    -    - 
Total Revenue  $1,142,400   $        -   $1,142,400 

 

   Environmental Solutions   Solid Waste   Total 
   Nine months ended September 30, 2023 
   Environmental Solutions   Solid Waste   Total 
             
Sources of Revenue               
Product sales  $1,536,000   $-   $1,536,000 
Media sales   618,700    -    618,700 
Total Revenue  $2,154,700   $          -   $2,154,700 

 

   Environmental Solutions   Solid Waste   Total 
   Nine months ended September 30, 2022 
   Environmental Solutions   Solid Waste   Total 
Sources of Revenue            
Product sales  $2,310,700    -   $2,310,700 
Media sales   641,400    -    641,400 
Management fees   -    100,000    100,000 
Total Revenue  $2,952,100   $100,000   $3,052,100 

 

Contract Balances

 

Where a performance obligation has been satisfied but not yet invoiced at the reporting date, a contract asset is recognized on the balance sheet. Where a performance obligation has not yet been satisfied but an invoice has been raised at the reporting date, a contract liability is recognized on the balance sheet.

 

10
 

 

The opening and closing balances of the Company’s accounts receivables and contract liabilities (current and non-current) are as follows:

 

           Contract Liabilities 
   Accounts Receivable,   Contract   Contract   Deferred Revenue   Deferred Revenue 
   net   Assets   Liabilities   (current)   (non-current) 
Balance as of September 30, 2023 (unaudited)  $390,800   $17,300   $656,800   $14,600   $- 
                          
Balance as of December 31, 2022   640,500    138,700    536,000    -    - 
                                         
Increase (decrease)  $(249,700)  $(121,400)  $120,800   $14,600   $- 

 

The majority of the Company’s revenue is generally invoiced on a weekly or monthly basis, and the payments are generally received within approximately 30-60 days. Contract liabilities are recorded when cash payments are received or due in advance of the Company’s performance, including amounts that are refundable.

 

Remaining Performance Obligations

 

As of September 30, 2023, the aggregate amount of the transaction price allocated to the remaining performance obligations was approximately $1.0 million, of which the Company expects to recognize approximately 85% of this revenue over the next 12 months.

 

The Company does not disclose the value of unsatisfied performance obligations for (i) contracts with an original expected term of one year or less and (ii) contracts for which the Company recognizes revenue at the amounts to which it has the right to invoice for services performed.

 

NOTE 4 – PROPERTY AND EQUIPMENT

 

Property and equipment was comprised of the following:

 

   September 30, 2023   December 31, 2022 
   (unaudited)     
Field and shop equipment  $452,900   $395,000 
Vehicles   72,500    72,500 
Waste destruction equipment, placed in service   -    - 
Furniture and office equipment   293,400    333,800 
Leasehold improvements   36,200    36,200 
Building and improvements   -    - 
Land   -    - 
 Property and equipment, gross    855,000    837,500 
Less: accumulated depreciation and amortization   (831,100)   (798,900)
Property and equipment, net  $23,900   $38,600 
           
Classified as assets held for sale   54,300    217,200 
           
Assets fair value disclosure total  $78,200   $255,800 

 

Depreciation expense for the three months ended September 30, 2023, and 2022 was $4,900 and $13,100, respectively. For the three months ended September 30, 2023, and 2022, depreciation expense included in cost of goods sold was $4,900 and $12,100, respectively. For the three months ended September 30, 2023, and 2022, depreciation expense included in selling, general and administrative expenses was $0 and $1,000, respectively.

 

11
 

 

Depreciation expense for the nine months ended September 30, 2023, and 2022 was $14,700 and $61,100, respectively. For the nine months ended September 30, 2023, and 2022, depreciation expense included in cost of goods sold was $14,700 and $50,300, respectively. For the nine months ended September 30, 2023, and 2022, depreciation expense included in selling, general and administrative expenses was $0 and $10,800, respectively.

 

NOTE 5 – INTANGIBLE ASSETS

 

   September 30, 2023 
   Gross carrying amount   Accumulated amortization   Impairment   Net carrying value 
   (unaudited)   (unaudited)   (unaudited)   (unaudited) 
Goodwill  $-   $-   $-   $- 
Customer list   42,500    (42,500)   -    - 
Technology   684,000    (665,400)   -    18,600 
Trade name   54,900    (54,900)   -    - 
   $781,400   $(762,800)  $-   $18,600 

 

   December 31, 2022 
   Gross carrying amount   Accumulated amortization   Impairment   Net carrying value 
                 
Goodwill  $277,800   $-   $(277,800)  $- 
Customer list   42,500    (42,500)   -    - 
Technology   875,900    (813,300)   (41,900)   20,700 
Trade name   54,900    (54,900)   -    - 
   $1,251,100   $(910,700)  $(319,700)  $20,700 

 

The estimated useful lives of the intangible assets range from seven to twenty years. Amortization expense was $700 and $4,400 for the three months ended September 30, 2023, and 2022, respectively. Amortization expense was $2,100 and $15,500 for the nine months ended September 30, 2023, and 2022, respectively.

 

NOTE 6 – LEASES

 

The Company has entered into operating leases primarily for real estate. These leases have terms which range from 1 to 8 years, and often include one or more options to renew. These renewal terms can extend the lease term from 1 year to month-to-month and are included in the lease term when it is reasonably certain that the Company will exercise the option. These operating leases are included in “Right of use assets” on the Company’s September 30, 2023, Consolidated Balance Sheets and represent the Company’s right to use the underlying asset for the lease term. The Company’s obligation to make lease payments are included in “Current portion of lease liabilities” and “Lease liabilities net of current portion” on the Company’s September 30, 2023, Consolidated Balance Sheets. As of September 30, 2023, total right-of-use assets and operating lease liabilities were approximately $206,500 and $234,400, respectively. All operating lease expense is recognized on a straight-line basis over the lease term. In the nine months ended September 30, 2023, the Company recognized approximately $62,700 in operating lease costs for right-of-use assets.

 

Because the rate implicit in each lease is not readily determinable, the Company uses its incremental borrowing rate to determine the present value of the lease payments. The Company has certain contracts for real estate which may contain lease and non-lease components which it has elected to treat as a single lease component.

 

12
 

 

Information related to the Company’s right-of-use assets and related lease liabilities were as follows (unaudited):

 

   For the Nine Months Ended September 30, 
   2023   2022 
         
Cash paid for operating lease liabilities  $123,500   $63,000 
Weighted-average remaining lease term   35 months    50 months 
Weighted-average discount rate   10%   10%

 

Maturities of lease liabilities as of September 30, 2023 were as follows:

 

      
2023  $90,300 
2024   92,900 
2025   87,600 
2026   - 
2027   - 
Thereafter   - 
 Total operating lease   270,800 
Less imputed interest   (36,400)
Total lease liabilities   234,400 

 

NOTE 7 – ACCRUED LIABILITIES

 

Accrued liabilities were comprised of the following:

 

   September 30,    December 31, 
   2023   2022 
   (unaudited)     
Accrued compensation and related taxes  $97,300   $81,900 
Accrued interest   3,182,700    2,562,300 
Accrued settlement/litigation claims   150,000    150,000 
Warranty and defect claims   65,300    57,000 
Other   68,700    102,600 
Total Accrued Liabilities  $3,564,000   $2,953,800 

 

NOTE 8 – UNCOMPLETED CONTRACTS

 

Costs, estimated earnings and billings on uncompleted contracts are as follows:

 

   September 30,   December 31, 
   2023   2022 
   (unaudited)     
Revenue recognized  $621,900   $440,200 
Less: billings to date   (604,600)   (301,500)
           
Contract assets   17,300    138,700 
           
Billings to date   1,807,900    2,849,400 
Revenue recognized   (1,151,100)   (2,313,400)
           
Contract liabilities  $656,800   $536,000 

 

13
 

 

NOTE 9 – INVESTMENTS

 

Paragon Waste Solutions LLC

 

Since its inception through September 30, 2023, the Company has provided approximately $6.4 million in funding to PWS for working capital and the further development and construction of various prototypes and commercial waste destruction units. No members of PWS have made capital contributions or other funding to PWS other than SEER. The intent of the operating agreement is to provide the funding as an advance against future earnings distributions made by PWS.

 

Paragon Southwest Medical Waste

 

On July 20, 2022, PWS transferred all patents owned covering medical waste destruction, and related technology, to its joint venture, Paragon Southwest Medical Waste (“PSMW”), in exchange for units in PSMW. The units in PSMW transferred in connection with this transaction increased SEER’s equity in PSMW to approximately 30%, on a total consolidated basis. This transaction also canceled the irrevocable license and royalty agreement, and the management agreement between PWS and PSMW.

 

On June 30, 2023, the Company exchanged its interest in PSMW in exchange for a 2% interest in Amlon Holdings when PSWM was acquired by Amlon Holdings.

 

NOTE 10 – DEBT

 

Debt as of September 30, 2023 (Unaudited), and December 31, 2022, was comprised of the following:

 

   Short term notes   Convertible notes, unsecured   Current portion of long-term debt and capital lease obligations   Long term debt   Total 
                     
Balance December 31, 2022  $3,518,000   $1,605,000   $504,300   $1,840,600   $7,467,900 
Increase in borrowing   901,100 (1)   -    -    -    901,100 
Principal reductions   (170,900)   -    (3,300)   -    (174,200)
Long term debt to current   -    -    3,400    (3,400)   - 
Amortization of debt discount   -    -    -    -    - 
Balance September 30, 2023  $ 4,248,200 (2)  $1,605,000   $504,400   $ 1,837,200 (3)  $8,194,800 

 

   (1) A) Secured note payable of $350,000, secured by certain real estate and equity, dated January 20, 2023, interest at an annual rate of 8.0% simple interest and matures on October 18, 2023. For the nine months ended September 30, 2023, the Company recorded interest expense of $19,400. There was $19,400 accrued and unpaid interest as of September 30, 2023. B) A secured note payable of $300,000, secured by real estate and equity in subsidiaries dated March 10, 2023, interest at an annual rate of 8% simple interest and matures on December 10, 2023. For the nine months ended September 30, 2023, the Company recorded interest expense of $13,400. There was $13,400 accrued and unpaid interest as of September 30, 2023. C) A secured note payable of $200,000, secured by real estate and equity in subsidiaries dated May 16, 2023, interest at an annual rate of 8% simple interest and matures on December 10, 2023. For the nine months ended September 30, 2023, the Company recorded interest expense of $5,800. There was $5,800 accrued and unpaid interest as of September 30, 2023.
  (2) The balance consists of $3,795,000 of secured notes, and $453,200 unsecured notes payable.
  (3) Secured notes.

 

14
 

 

NOTE 11 – RELATED PARTY TRANSACTIONS

 

Notes payable and accrued interest due to certain related parties are as follows:

 

   September 30,    December 31, 
   2023   2022 
   (unaudited)     
Short term notes  $125,000   $125,000 
Accrued interest   69,200    59,000 
Total short-term notes and accrued interest - Related parties  $194,200   $184,000 

 

NOTE 12 – EQUITY TRANSACTIONS

 

2023 Common Stock Transactions

 

During the nine months ended September 30, 2023, no new equity transactions have occurred.

 

2022 Common Stock Transactions

 

During the nine months ended September 30, 2022, no new equity transactions have occurred.

 

Non-controlling Interest

 

The non-controlling interest presented in our condensed consolidated financial statements reflects a 46% non-controlling equity interest in PWS and 49% non-controlling equity interest in PelleChar. Net losses attributable to non-controlling interest, as reported on our condensed consolidated statements of operations, represents the net loss of each entity attributable to the non-controlling equity interest. The non-controlling interest is reflected within stockholders’ equity on the condensed consolidated balance sheet.

 

NOTE 13 – CUSTOMER CONCENTRATIONS

 

The Company had sales from operations to three customers, for both the nine months ended September 30, 2023, and 2022 that surpassed the 10% threshold of total revenue, respectively. In total, these customers represented approximately 38% and 36% of our total sales, respectively. The concentration of the Company’s business with a relatively small number of customers may expose us to a material adverse effect if one or more of these large customers were to experience financial difficulty or were to cease being customers for non-financial related issues.

 

NOTE 14 – NET GAIN OR LOSS PER SHARE

 

Basic net gain or loss per share is computed by dividing net gain or loss attributable to common shareholders by the weighted average number of common shares outstanding. Diluted net gain or loss per share is computed by dividing net loss attributable to common shareholders by the weighted average number of common shares outstanding plus the number of common shares that would be issued assuming exercise or conversion of all potentially dilutive common shares. Potentially dilutive securities are excluded from the calculation when their effect would be anti-dilutive. For nine months ended September 30, 2023, all potentially dilutive securities have been excluded from the diluted share calculations because they were anti-dilutive as a result of the net losses incurred for the respective period, or were dilutive, but the exercise prices were above the stock price for the entire period, deeming them not to be converted, or exercised during the period. Accordingly, basic shares equal diluted shares for all periods presented.

 

15
 

 

Potentially dilutive securities were comprised of the following (unaudited):

 

   2023   2022 
  

For the Nine Months Ended

September 30,

 
   2023   2022 
Warrants   -    200,000 
Options   1,000,000    1,590,000 
Convertible notes payable, including accrued interest   3,443,000    3,170,700 
Potentially dilutive securities   4,443,000    4,960,700 

 

NOTE 15 – DISCONTINUED SEM OPERATIONS

 

On January 1, 2023, the Company’s board of directors, by unanimous consent, adopted a resolution to discontinue operations of the Company’s wholly owned subsidiary, SEM, LLC. For the unaudited three and nine months ended September 30, 2023 and 2022, all operations from SEMS have been reported as discontinued operations.

 

The following table presents the assets and liabilities associated with the discontinued operations of SEM:

 

   September 30,   December 31, 
   2023   2022 
   (unaudited)     
ASSETS          
Property and equipment, net  $54,300    217,200 
Total Assets held for sale  $54,300   $217,200 
           
LIABILITIES          
Accounts payable  $29,800    40,900 
Accrued liabilities   10,000    10,000 
Current portion of long-term debt   14,200    34,600 
Total current liabilities   54,000    

85,500

 
           
Total liabilities held for sale  $54,000   $85,500 

 

16
 

 

Major classes of line items constituting pretax income on discontinued operations:

 

   2023   2022 
   For the Nine Months ended 
   September 30, 
   2023   2022 
         
Services revenue  $-   $120,400 
           
Services costs   -    (275,100)
General and administrative expenses   (14,700)   (56,800)
Salaries and related expenses   -    (38,400)
Other income (expense)   174,600    (3,200)
Total income (expense)   159,900    (373,500)
           
Operating income (loss)   159,900    (253,100)
Income tax benefit   -    - 
           
Total income (loss) from discontinued operations  $159,900   $(253,100)

 

NOTE 16 – SEGMENT INFORMATION AND MAJOR CUSTOMERS

 

The Company currently has identified two segments as follows:

 

  MV, PelleChar Environmental Solutions
  PWS Solid Waste

 

The composition of our current reportable segments is consistent with that used by our chief decision makers to evaluate performance and allocate resources. All of our operations are located in the U.S. The Company has not allocated corporate selling, general and administrative expenses, and stock-based compensation to the segments. All intercompany transactions have been eliminated.

 

17
 

 

Segment information for the (unaudited) three and nine months ended September 30, 2023 and 2022 is as follows:

 

   Solutions (1)   Waste   Corporate   Total 
Three Months ended September 30,                
                 
2023  Environmental   Solid         
   Solutions (1)   Waste   Corporate   Total 
                 
Revenue  $870,300   $-   $-   $870,300 
Depreciation and amortization (1)   5,600    -    -    5,600 
Interest expense   400    -    222,100    222,500 
Net income (loss) attributable to SEER common stockholders   66,800    (1,700)   (518,700)   (453,600)
Capital expenditures (cash and noncash)           -    -    -    - 
Total assets  $554,800   $-   $532,200   $1,087,000 

 

2022  Environmental   Solid         
   Solutions (1)   Waste   Corporate   Total 
                 
Revenue  $1,142,400   $-   $-   $1,142,400 
Depreciation and amortization (1)   16,600    -    1,000    17,600 
Interest expense   600    -    197,000    197,600 
Net income (loss) attributable to SEER common stockholders   (103,600)   (19,500)   (476,500)   (599,600)
Capital expenditures (cash and noncash)   -    -    -    - 
Total assets (1)  $1,732,500   $299,000   $312,400   $2,343,900 

 

   Solutions (1)   Waste   Corporate   Total 
Nine Months Ended September 30,                
                 
2023  Environmental   Solid         
   Solutions (1)   Waste   Corporate   Total 
                 
Revenue  $2,154,700   $-   $-   $2,154,700 
Depreciation and amortization (1)   16,800    -    -    16,800 
Interest expense   700    -    653,300    654,000 
Net income (loss) attributable to SEER common stockholders   (55,700)   6,800    (1,621,300)   (1,670,200)
Capital expenditures (cash and noncash)   -    -    -    - 
Total assets  $554,800   $-   $532,200   $1,087,000 
                     

 

2022  Environmental   Solid         
   Solutions (1)   Waste   Corporate   Total 
                 
Revenue  $2,952,100   $100,000   $-   $3,052,100 
Depreciation and amortization (1)   48,800    17,000    10,800    76,600 
Interest expense   3,100    4,100    568,000    575,200 
Net income (loss) attributable to SEER common stockholders   (22,800)   (61,300)   (1,425,200)   (1,509,300)
Capital expenditures (cash and noncash)   31,800    -    -    31,800 
Total assets (1)  $1,732,500   $299,000   $312,400   $2,343,900 

 

(1) Segment information excludes the results of SEM, which was discontinued January 1, 2023, except net income (loss), of which SEM is categorized as discontinued operations. (See Note 15)

  

 

18
 

 

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

 

The following discussion is intended to assist you in understanding our business and the results of our operations. It should be read in conjunction with the Condensed Consolidated Financial Statements and the related notes that appear elsewhere in this report as well as our Report on Form 10-K filed with the Securities and Exchange Commission on April 14, 2023. Certain statements made in our discussion may be forward looking. Forward-looking statements involve risks and uncertainties and a number of factors could cause actual results or outcomes to differ materially from our expectations. These risks, uncertainties, and other factors include, among others, the risks described in our Annual Report on Form 10-K filed with the Securities and Exchange Commission, as well as other risks described in this Quarterly Report. Unless the context requires otherwise, when we refer to “we,” “us” and “our,” we are describing Strategic Environmental & Energy Resources, Inc. and its consolidated subsidiaries on a consolidated basis.

 

SEER BUSINESS OVERVIEW

 

Strategic Environmental & Energy Resources, Inc. (“the Company” or “SEER”) was originally organized under the laws of the State of Nevada on February 13, 2002. SEER is dedicated to assembling complementary service and clean-technology environmental businesses that provide safe, innovative, cost effective, and profitable solutions in the environmental, waste management and renewable energy industries. SEER currently operates four companies. Through these operating companies, SEER provides products and services throughout North America. Some of SEER’s current customers include Cargill, ConAgra, Simplot, JBS, and many other companies in the food, beverage, and agricultural space, as well as water treatment and landfill businesses.

 

The Company’s domestic strategy is to grow internally through SEER’s subsidiaries that have well established revenue streams and, simultaneously, establish long-term alliances with and/or acquire complementary domestic businesses in rapidly growing markets for renewable energy, waste and water treatment and industrial services. The focus of the SEER family of companies, however, is to increase margins by securing or developing proprietary patented and patent-pending technologies and then leveraging its 25 plus-year service experience to place these innovations and solutions into the growing markets of emission capture and control, renewable “green gas” capture and sale, as well as general solid waste and medical/pharmaceutical waste destruction. Many of SEER’s current operating companies share customer bases and each provides synergistic services, technologies and products.

 

Subsidiaries

 

Wholly owned

 

MV, LLC (d/b/a MV Technologies), (“MV”): (operating since 2003) MV designs and sells patented and/or proprietary, dry scrubber solutions for management of Hydrogen Sulfide (H2S) in biogas, landfill gas, and petroleum processing operations. These system solutions are marketed under the product names H2SPlus™ and OdorFilter™. The markets for these products include landfill operations, agricultural and food product processors, wastewater treatment facilities, and petroleum product refiners. MV also develops and designs proprietary technologies and systems used to condition biogas for use as renewable natural gas (“RNG”), for a number of applications, such as transportation fuel and natural gas pipeline injection.

 

SEER Environmental Materials, LLC (“SEM”): (formed September 2015) is a wholly owned subsidiary established as a materials technology business with the original purpose of developing advanced chemical absorbents and catalysts that enhance the capability of biogas produced from, landfill, wastewater treatment operations and agricultural digester operations. As of January 1, 2023, the operations of SEM were discontinued. Results for the nine months ended September 30, 2023 and 2022 are included in discontinued operations. The entity remains active and the Company anticipates for the entity to be used to form a joint venture to manufacture licensed biochar products and/or process and repurpose windmill blades. As of the filing date of this report, there is no definitive agreement for a joint venture or other arrangement, and no assurance can be given that any arrangement will be entered into on favorable terms or at all. The initial facility is currently targeted for Texas. As of the filing date of this report, there is no definitive agreement for a joint venture or other arrangement, and no assurance can be given that any arrangement will be entered into on favorable terms or at all.

 

19
 

 

Majority owned

 

Paragon Waste Solutions, LLC (“PWS”): (formed late 2010) PWS is an operating company that has developed a patented waste destruction technology using a pyrolytic heating process combined with “non-thermal plasma” assisted oxidation. This technique involves gasification of solid waste by heating the waste in a low-oxygen environment, followed by complete oxidation at higher temperatures in the presence of plasma. The term “non-thermal plasma” refers to a low energy ionized gas that is generated by electrical discharges between two electrodes. This technology, commercially referred to as CoronaLux™, is designed and intended for the “clean” destruction of hazardous chemical and biological waste (i.e., hospital “red bag” waste) thereby eliminating the need for costly segregation, transportation, incineration or landfill (with their associated legacy liabilities). PWS is a 54% owned subsidiary.

 

PWS recently sold certain assets and its technology and associated IP to its joint venture partner, Paragon Southwest Medical Waste, LLC (“PSMW”)(see below). The sale was a unit transfer transaction. PWS retained certain international rights and continues to promote and market the CoronaLux technology in international markets.

 

ReaCH4BioGas (“Reach” or “Benefuels”) (trade name for Benefuels, LLC): (formed February 2013) owned 85% by SEER. Reach develops renewable natural gas projects that convert raw biogas into pipeline quality gas and/or Renewable, “RNG”, for fleet vehicles. Reach has had minimal operations as of September 30, 2023.

 

PelleChar, LLC (“PelleChar”): (formed September 2018) owned 51% by SEER. PelleChar has secured third-party pellet manufacturing capabilities from one of the nation’s premier pellet manufacturers. Working closely with Biochar Now, LLC, PelleChar commenced sales in 2019 of its proprietary pellets containing the proven and superior Biochar Now product starting with the landscaping and big agriculture markets. At this time, PelleChar is the only company able to offer a soil amendment pellet containing the Biochar Now product that is produced using the patented pyrolytic process. PelleChar activity to date relates to startup of operations, and an increasing sales effort. Revenue and expenses of PelleChar were not material for the nine months ended September 30, 2023.

 

Joint Ventures

 

Paragon Southwest Joint Venture: In December 2017, PWS and GulfWest Waste Solutions, LLC (“GWWS”) formed Paragon Southwest Medical Waste, LLC (“PSMW”) to exploit the PWS medical waste destruction technology. PSMW has an exclusive license to the CoronaLux™ technology in a six-state area of the Southern United States. In 2017, PSMW purchased and installed three CoronaLux™ units at an PSMW facility. In July 2022, the Company exchanged its patents and related technology to its joint venture, PSMW, in exchange for units in PSMW. The Company’s interest in PSMW was converted to a 2% interest in Amlon Holdings in June 2023 when PSMW was acquired by Amlon Holdings.

 

Eco SEER Saudi: On December 17, 2022, SEER and Eco Tadweer (“ET”), a business entity incorporated in the Kingdom of Saudi Arabia (“KSA”) entered into a joint venture with SEER owning a minority, non-controlling 49% interest in the joint venture. The purpose of the joint venture is to market and monetize SEER’s technologies in and around the KSA. While SEER is entitled to appoint one of three managers, ET is responsible for funding, operation and management of the joint venture. Eco SEER has had minimal operations as of September 30, 2023.

 

20
 

 

SEER’s Financial Condition and Liquidity

 

As shown in the accompanying consolidated financial statements, the Company has experienced recurring losses, and has accumulated a deficit of approximately $33.7 million as of September 30, 2023, and $32.0 million as of December 31, 2022. For the nine months ended September 30, 2023, the Company incurred a net loss of approximately $1.7 million and for the nine months ended September 30, 2022, the Company incurred a net loss of approximately $1.5 million. The Company had a working capital deficit of approximately $11.0 million as of September 30, 2023, and a working capital deficit of $9.4 million as of December 31, 2022. These factors raise substantial doubt about the ability of the Company to continue to operate as a going concern.

 

Realization of a major portion of the Company’s assets as of September 30, 2023, is dependent upon continued operations. The Company is dependent on generating additional revenue or obtaining adequate capital to fund operating losses until it becomes profitable. For the nine months ended September 30, 2023, the Company raised approximately $0.9 million from the issuance of short-term and long-term debt, for a net cash provided by financing activities of approximately $0.6 million. In addition, the Company has undertaken a number of specific steps to continue to operate as a going concern. The Company continues to focus on developing organic growth in our operating companies and improving gross and net margins through increased attention to pricing, aggressive cost management and overhead reductions, including discontinuing SEM, a line of business with historically insufficient margins. The Company has limited common shares available for issue which may limit the ability to raise capital or settle debt through issuance of shares. The Company has increased business development efforts to address opportunities identified in expanding markets attributable to increased interest in energy conservation and emission control regulations. In addition, the Company is evaluating various forms of financing which may be available to it. There can be no assurance that the Company will secure additional financing for working capital, increase revenues and achieve the desired result of net income and positive cash flow from operations in future years. These financial statements do not give any effect to any adjustments that would be necessary should the Company be unable to report on a going concern basis.

 

Results of Operations for the Three Months Ended September 30, 2023, and 2022

 

Total revenues were $0.9 million and $1.1 million for the three months ended September 30, 2023, and 2022, respectively. The decrease of approximately $0.2 million or 18% in revenues comparing the three months ended September 30, 2023, to the three months ended September 30, 2022, is attributable to the decreases in revenues from our products segment revenue, which includes our environmental solutions segment. Our product percent-complete contract revenue decreased due to several material projects being postponed due to site preparation delays, and capital constraints of the Company.

 

Operating expenses, which include cost of products, cost of solid waste, general and administrative (G&A) expenses, and salaries and related expenses, were approximately $1.1 million for the three months ended September 30, 2023 and approximately $1.4 million for the three months ended September 30, 2022. Product costs decreased $0.3 million for the three months ended September 30, 2023, compared to the three months ended September 30, 2022, due to above mentioned percent-complete project delays.

 

Total other income and expense was a net expense of approximately $0.2 million for both the three months ended September 30, 2023 and 2022. The majority of other income and expense is interest expense, with was consistent at $0.2 million for both the three months ended September 30, 2023 and 2022.

 

There is no provision for income taxes for both the three months ended September 30, 2023, and 2022, due to our net losses for both periods and we continue to maintain full allowances covering our net deferred tax benefits as of September 30, 2023, and 2022.

 

Loss from continuing operations was approximately $0.5 million and $0.4 million, for the three months ended September 30, 2023 and 2022, respectively. The net loss attributable to SEER after deducting $2,200 for the non-controlling interest and deducting $400 of loss from discontinued operations was approximately $0.4 million for the three months ended September 30, 2023, as compared to a net loss of approximately $0.6 million, after adding $10,800 in non-controlling interest and deducting $0.2 million loss from discontinued operations, for the three months ended September 30, 2022. As noted above, a reduction of loss from discontinued operations, partially offset by a decrease in revenue, decreased net loss by $0.2 million.

 

21
 

 

Results of Operations for the Nine Months Ended September 30, 2023, and 2022

 

Total revenues were approximately $2.2 million and $3.1 million for the nine months ended September 30, 2023, and 2022, respectively. The decrease of approximately $0.9 million or 29% in revenues comparing the nine months ended September 30, 2023, to the nine months ended September 30, 2022, is attributable to the decreases in revenues from our products segment revenue, which includes our environmental solutions segment, and our solid waste segment. Our product percent-complete contract revenue decreased due to several material projects being postponed due to site preparation delays and capital constraints of the Company. Our solid waste segment also decreased $0.1 million, as we no longer collect a management fee from our PWS subsidiary.

 

Operating expenses, which include cost of products, cost of solid waste, general and administrative (G&A) expenses, and salaries and related expenses, were approximately $3.4 million for the nine months ended September 30, 2023 and approximately $3.9 million for the nine months ended September 30, 2022. Product costs decreased approximately $0.7 million for the nine months ended September 30, 2023, compared to the nine months ended September 30, 2022 due to above mentioned percent-complete project delays, offset partially by an increase in general and administrative expenses by $0.1 million, due to an increase in accounting and professional fees related to an increased auditing fees.

 

Total other income and expense was a net expense of approximately $0.6 million for the nine months ended September 30, 2023, compared to $0.4 million for the nine months ended September 30, 2022. The majority of other income and expense is interest expense, with increased approximately $0.1 million for the nine months ended September 30, 2023 due to higher average debt outstanding. The prior year period also included a $0.1 million gain on debt extinguishment from the forgiveness of the Company’s PPP Loans from the US Treasury.

 

There is no provision for income taxes for both the nine months ended September 30, 2023, and 2022, due to our net losses for both periods and we continue to maintain full allowances covering our net deferred tax benefits as of September 30, 2023, and 2022.

 

Loss from continuing operations was approximately $1.8 million and $1.3 million, for the nine months ended September 30, 2023 and 2022, respectively. The net income attributable to SEER after deducting $1,500 for the non-controlling interest and $0.2 million gain from discontinued operations was approximately $1.7 million for the nine months ended September 30, 2023, as compared to a net loss of $1.5 million, after adding $33,000 in non-controlling interest and deducting $0.3 million loss from discontinued operations, for the nine months ended September 30, 2022. As noted above, current year’s income from discontinued operations, partially offset by prior years gain on debt distinguishment, increased net loss by $0.2 million.

 

22
 

 

Results of Discontinued Operations for the Nine Months Ended September 30, 2023 and 2022

 

As of January 1, 2023, the Company abandoned its SEM subsidiary. All revenue and expenses of our SEMS subsidiary for 2023 are classified as discontinued operations.

 

   For the Nine Months ended 
   September 30, 
   2023   2022 
         
Services revenue  $-   $120,400 
           
Services costs   -    (275,100)
General and administrative expenses   (14,700)   (56,800)
Salaries and related expenses   -    (38,400)
Other income (expense)   174,600    (3,200)
Total income (expense)   159,900    (373,500)
           
Operating income (loss)   159,900    (253,100)
Income tax benefit   -    - 
           
Total income (loss) from discontinued operations  $159,900   $(253,100)

 

There is no provision for income taxes for both the nine months ended September 30, 2023, and 2022, due to our net loss carryforwards and we continue to maintain full allowances covering our net deferred tax benefits as of September 30, 2023 and 2022.

 

Changes in Cash Flow

 

Operating Activities

 

The Company had net cash used by operating activities for both the nine months ended September 30, 2023, and 2022 of $0.9 million. Cash used by operating activities is driven by our net loss and adjusted by non-cash items as well as changes in operating assets and liabilities. Non-cash adjustments primarily include depreciation and amortization of intangible assets, and gain on the sale of fixed assets. Net loss of $1.5 million for the nine months ended September 30, 2022 increased to $1.7 million for the nine months ended September 30, 2023. Non-cash adjustments increased cash uses of $0.2 million for the nine months ended September 30, 2023, compared to cash uses of $200 for the nine months ended September 30, 2022.

 

In addition to the non-cash adjustments to net income, changes in assets and liabilities include:

 

a) changes in accounts receivable provided $0.3 million in the first nine months of 2023, compared to using $0.4 million in the first nine months of 2022,
b) changes in contract assets provided $0.1 million in the first nine months of 2023, compared to using $0.1 million in the first nine months of 2022,
c) changes in contract liabilities provided $0.1 million in the first nine months of 2023, compared to using $5,500 in the first nine months of 2022,
d) changes in prepaid expenses and other assets provided $0.1 million in the first nine months of 2023, compared to using $29,800 in the first nine months of 2022,
e) changes in accounts payable, accrued liabilities, and customer deposits provided $0.4 million in the first nine months of 2023, compared to providing $0.9 million in the first nine months of 2022, and
f) changes in inventory used $7,000 in the first nine months of 2023, compared to providing $0.2 million in the first nine months of 2022.

 

23
 

 

Investing activities

 

Net cash provided by investing activities was $0.3 million for the nine months ended September 30, 2023, compared to a use of $31,800 for the nine months ended September 30, 2022. The Company sold fixed assets during the current year and collected $0.3 million.

 

Financing Activities

 

Net cash provided by financing activities was approximately $0.6 million for the nine months ended September 30, 2023, compared with providing $0.8 million for the nine months ended September 30, 2022. The Company’s financing activities for both periods consist of new borrowing, net of any principal payments made during the period.

 

Critical Accounting Policies, Judgments and Estimates

 

Use of Estimates

 

The preparation of these consolidated financial statements in conformity with accounting principles generally accepted in the United States (U.S. GAAP) requires management to make a number of estimates and assumptions related to the reported amount of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the period. Significant items subject to such estimates and assumptions include the forecasted cash flows used in the impairment testing of goodwill and intangible assets. The carrying amount of intangible assets; valuation allowances and reserves for receivables; revenue recognition related to contracts accounted for under the percentage of completion method; and the Company’s ability to continue as a going concern. Actual results could differ from those estimates.

 

Accounts Receivable and Concentration of Credit Risk

 

Accounts receivable are recorded at the invoiced amounts less an allowance for doubtful accounts and do not bear interest. The allowance for doubtful accounts is based on our estimate of the amount of probable credit losses in our accounts receivable. We determine the allowance for doubtful accounts based upon an aging of accounts receivable, historical experience and management judgment. Accounts receivable balances are reviewed individually for collectability, and balances are charged off against the allowance when we determine that the potential for recovery is remote. An allowance for doubtful accounts of approximately $168,300 and $179,000 has been reserved as of September 30, 2023, and December 31, 2022, respectively.

 

The Company is exposed to credit risk in the normal course of business, primarily related to accounts receivable. Our customers operate primarily in the food, beverage, and agricultural space, as well as water treatment and landfill industries in the United States. Accordingly, we are affected by the economic conditions in these industries as well as general economic conditions in the United States. To limit credit risk, management periodically reviews and evaluates the financial condition of its customers and maintains an allowance for doubtful accounts. As of September 30, 2023, and December 31, 2022, we do not believe that we have significant credit risk.

 

Fair Value of Financial Instruments

 

The carrying amounts of our financial instruments, including accounts receivable and accounts payable, are carried at cost, which approximates their fair value due to their short-term maturities. We believe that the carrying value of notes payable with third parties, including their current portion, approximate their fair value, as those instruments carry market interest rates based on our current financial condition and liquidity. We believe the amounts due to related parties also approximate their fair value, as their carried interest rates are consistent with those of our notes payable with third parties.

 

Long-lived Assets

 

The Company evaluates the carrying value of long-lived assets for impairment on an annual basis or whenever events or changes in circumstances indicate that the carrying amounts may not be recoverable. An asset is considered to be impaired when the anticipated undiscounted future cash flows of an asset group are estimated to be less than its carrying value. The amount of impairment recognized is the difference between the carrying value of the asset group and its fair value. Fair value estimates are based on assumptions concerning the amount and timing of estimated future cash flows. No impairments were determined as of September 30, 2023.

 

24
 

 

Revenue Recognition

 

Revenue is recognized under FASB guidelines, which requires an evaluation of revenue arrangements with customers following a five-step approach: (1) identify the contract with a customer; (2) identify the performance obligations in the contract; (3) determine the transaction price; (4) allocate the transaction price to the performance obligations; and (5) recognize revenue when (or as) the company satisfies each performance obligation. Revenues are recognized when control of the promised services are transferred to the customers in an amount that reflects the expected consideration in exchange for those services. A customer obtains control when it has the ability to direct the use of and obtain the benefits from the services. Other major provisions of the guidance include capitalization of certain contract costs, consideration of the time value of money in the transaction price and allowing estimates of variable consideration to be recognized before contingencies are resolved in certain circumstances. The guidance also requires enhanced disclosures regarding the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers.

 

Item 3. Quantitative and Qualitative Disclosures About Market Risk

 

Not Applicable.

 

Item 4. Controls and Procedures

 

Evaluation of Disclosure Controls and Procedures

 

The Company maintains disclosure controls and procedures that are designed to ensure that information required to be disclosed in our filings with the Securities and Exchange Commission (SEC) are recorded, processed, summarized and reported within the time period specified in the SEC’s rules and forms, and that such information is accumulated and communicated to management, including our chief executive officer and chief financial officer, or persons performing similar functions, as appropriate, to allow timely decisions regarding required disclosure based on the definition of “disclosure controls and procedures” as defined in Rule 13a-15(e) promulgated under the Securities Exchange Act of 1934, as amended (the “Exchange Act”).

 

As of the end of the period covered by this report, and under the supervision and with the participation of our management, including our Chief Executive Officer and the person performing the similar function as Chief Financial Officer, we evaluated the effectiveness of the design and operation of these disclosure controls and procedures. Based on this evaluation and subject to the foregoing, our Chief Executive Officer and Interim Chief Financial Officer concluded that our disclosure controls and procedures were not effective.

 

Management’s Report on Internal Control over Financial Reporting

 

Our management is responsible for establishing and maintaining adequate internal control over financial reporting. Internal control over financial reporting is defined in Rule 13a-15(f) or 15d-15(f) promulgated under the Securities Exchange Act of 1934 as a process designed by, or under the supervision of, the company’s principal executive and principal financial officers and effected by the company’s board of directors, management and other personnel, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with accounting principles generally accepted in the United States of America and includes those policies and procedures that:

 

● Pertain to the maintenance of records that in reasonable detail accurately and fairly reflect the transactions and dispositions of the assets of the company;
● Provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with accounting principles generally accepted in the United States of America and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and
● Provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of the company’s assets that could have a material effect on the financial statements.

 

25
 

 

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate. All internal control systems, no matter how well designed, have inherent limitations. Therefore, even those systems determined to be effective can provide only reasonable assurance with respect to financial statement preparation and presentation. Because of the inherent limitations of internal control, there is a risk that material misstatements may not be prevented or detected on a timely basis by internal control over financial reporting. However, these inherent limitations are known features of the financial reporting process. Therefore, it is possible to design into the process safeguards to reduce, though not eliminate, this risk.

 

We carried out an assessment, under the supervision and with the participation of our management, including our CEO and Interim CFO, of the effectiveness of the design and operation of our internal controls over financial reporting, as defined in Rules 13a-15(e) and 15d-15(e) of the Securities Exchange Act of 1934, as of September 30, 2023. In making this assessment, management used the criteria set forth by the Committee of Sponsoring Organizations of the Treadway Commission in Internal Control — Integrated Framework (2013). Based on that assessment and on those criteria, our CEO and Interim CFO concluded that our internal control over financial reporting was not effective as of June 30, 2023. The principal basis for this conclusion is (i) failure to engage sufficient resources regarding our accounting and reporting obligations during our startup and (ii) failure to fully document our internal control policies and procedures.

 

This quarterly report does not include an attestation report of our registered public accounting firm regarding internal control over financial reporting. The management’s report was not subject to attestation by our registered public accounting firm pursuant to temporary rules of the SEC that permit us to provide only the management’s report in this quarterly report.

 

The Company’s management, including the Company’s CEO and Interim CFO, does not expect that the Company’s internal control over financial reporting will prevent all errors and all fraud. Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree or compliance with the policies or procedures may deteriorate.

 

Changes in Internal Control over Financial Reporting

 

There were no significant changes in our internal control over financial reporting during the last fiscal quarter that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

 

PART II. OTHER INFORMATION

 

ITEM 1. Legal Proceedings

 

Not Applicable.

 

ITEM 1A. Risk Factors

 

Please review our report on Form 10-K Part 1, Item 1A for a complete statement of “Risk Factors” that pertain to our business.

 

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

 

None.

 

26
 

 

ITEM 3. DEFAULTS UPON SENIOR SECURITIES

 

The $500,000 secured short-term note issued on February 1, 2019, was past due as of September 30, 2023. We have accrued 100,000 shares of Company stock per month, recorded as interest, as penalty shares per agreement with the lender, until paid, through December 31, 2020, in accordance with a verbal agreement with the lender. No further share accrual is being made. A total of 1,850,000 penalty shares are accrued, and due on demand, in accordance with this borrowing. Unpaid interest is approximately $30,000 as of the date of this report.

 

The $100,000 secured short-term note issued on July 2, 2019, was past due as of September 30, 2023. We are continuing to accrue interest at the stated rate of 12% per annum, which is a total of approximately $51,000 as of the date of this report, until the loan is paid in full, or an extension agreement is reached with the lender. We are in on-going discussions with our lenders regarding the terms and conditions of the respective loans. Although we have not obtained a written waiver(s) or entered into an amendment(s) formally extending or revising debt terms in all instances, the lenders, most of whom are also shareholders, have and are continuing to cooperate with the company in order to resolve the matters in the best interest of all parties.

 

The $150,000 secured short-term note issued on July 18, 2019, was past due as of September 30, 2023. We have accrued 15,000 shares of Company stock per month, which increased to 30,000 shares of common stock per month beginning March 16, 2020, recorded as interest, as penalty shares per agreement with the lender, until paid, through December 31, 2020, in accordance with a verbal agreement with the lender. A total of 360,000 penalty shares are accrued and due on demand, in accordance with this borrowing. Unpaid interest is approximately $10,000 as of the date of this report.

 

The $300,000 secured short-term note issued on October 17, 2019, was past due as of September 30, 2023. We are continuing to accrue interest at the stated rate of 15% per annum, which is a total of approximately $178,100 as of the date of this report, until the loan is paid in full, or an extension agreement is reached with the lender. We are in on-going discussions with our lenders regarding the terms and conditions of the respective loans. Although we have not obtained a written waiver(s) or entered into an amendment(s) formally extending or revising debt terms in all instances, the lenders, most of whom are also shareholders, have and are continuing to cooperate with the company in order to resolve the matters in the best interest of all parties.

 

The $450,000 secured short-term note issued on December 14, 2019, was past due as of September 30, 2023. We are continuing to accrue interest at the stated rate of 15% per annum, which is a total of approximately $256,300 as of the date of this report, until the loan is paid in full, or an extension agreement is reached with the lender. We are in on-going discussions with our lenders regarding the terms and conditions of the respective loans. Although we have not obtained a written waiver(s) or entered into an amendment(s) formally extending or revising debt terms in all instances, the lenders, most of whom are also shareholders, have and are continuing to cooperate with the company in order to resolve the matters in the best interest of all parties.

 

The $100,000 secured short-term note issued on March 16, 2020, was past due as of September 30, 2023. We are continuing to accrue interest at the stated rate of 14% per annum, which is a total of approximately $49,600 as of the date of this report, until the loan is paid in full, or an extension agreement is reached with the lender. We are in on-going discussions with our lenders regarding the terms and conditions of the respective loans. Although we have not obtained a written waiver(s) or entered into an amendment(s) formally extending or revising debt terms in all instances, the lenders, most of whom are also shareholders, have and are continuing to cooperate with the company in order to resolve the matters in the best interest of all parties.

 

The $50,000 secured short-term note issued on March 17, 2020, was past due as of September 30, 2023. We are continuing to accrue interest at the stated rate of 14% per annum, which is a total of approximately $24,800 as of the date of this report, until the loan is paid in full, or an extension agreement is reached with the lender. We are in on-going discussions with our lenders regarding the terms and conditions of the respective loans. Although we have not obtained a written waiver(s) or entered into an amendment(s) formally extending or revising debt terms in all instances, the lenders, most of whom are also shareholders, have and are continuing to cooperate with the company in order to resolve the matters in the best interest of all parties.

 

The $220,000 secured short-term note issued on July 8, 2020, was past due as of September 30, 2023. We are continuing to accrue interest at the stated rate of 15% per annum, which is a total of approximately $106,600 as of the date of this report, until the loan is paid in full, or an extension agreement is reached with the lender. We are in on-going discussions with our lenders regarding the terms and conditions of the respective loans. Although we have not obtained a written waiver(s) or entered into an amendment(s) formally extending or revising debt terms in all instances, the lenders, most of whom are also shareholders, have and are continuing to cooperate with the company in order to resolve the matters in the best interest of all parties.

 

27
 

 

The $120,000 secured short-term note issued on August 18, 2020, was past due as of September 30, 2023. We are continuing to accrue interest at the stated rate of 15% per annum, which is a total of approximately $56,100 as of the date of this report, until the loan is paid in full, or an extension agreement is reached with the lender. We are in on-going discussions with our lenders regarding the terms and conditions of the respective loans. Although we have not obtained a written waiver(s) or entered into an amendment(s) formally extending or revising debt terms in all instances, the lenders, most of whom are also shareholders, have and are continuing to cooperate with the company in order to resolve the matters in the best interest of all parties.

 

The $280,000 secured short-term note issued on September 3, 2020, was past due as of September 30, 2023. We are continuing to accrue interest at the stated rate of 15% per annum, which is a total of approximately $129,100 as of the date of this report, until the loan is paid in full, or an extension agreement is reached with the lender. We are in on-going discussions with our lenders regarding the terms and conditions of the respective loans. Although we have not obtained a written waiver(s) or entered into an amendment(s) formally extending or revising debt terms in all instances, the lenders, most of whom are also shareholders, have and are continuing to cooperate with the company in order to resolve the matters in the best interest of all parties.

 

The $500,000 secured short-term note issued on August 15, 2022, was past due as of September 30, 2023. We are continuing to accrue interest at the stated rate of 10% per annum, which is a total of approximately $56,200 as of the date of this report, until the loan is paid in full, or an extension agreement is reached with the lender. We are in on-going discussions with our lenders regarding the terms and conditions of the respective loans. Although we have not obtained a written waiver(s) or entered into an amendment(s) formally extending or revising debt terms in all instances, the lenders, most of whom are also shareholders, have and are continuing to cooperate with the company in order to resolve the matters in the best interest of all parties.

 

The $100,000 secured short-term note issued on July 20, 2022, was past due as of September 30, 2023. We are continuing to accrue interest at the stated rate of 10% per annum, which is a total of approximately $9,600 as of the date of this report, until the loan is paid in full, or an extension agreement is reached with the lender. We are in on-going discussions with our lenders regarding the terms and conditions of the respective loans. Although we have not obtained a written waiver(s) or entered into an amendment(s) formally extending or revising debt terms in all instances, the lenders, most of whom are also shareholders, have and are continuing to cooperate with the company in order to resolve the matters in the best interest of all parties.

 

The $500,000 secured long-term note issued on July 13, 2018, was past due as of September 30, 2023. We are continuing to accrue interest at the stated rate of 20% per annum, which is a total of approximately $521,700 as of the date of this report, until the loan is paid in full, or an extension agreement is reached with the lender. We are in on-going discussions with our lenders regarding the terms and conditions of the respective loans. Although we have not obtained a written waiver(s) or entered into an amendment(s) formally extending or revising debt terms in all instances, the lenders, most of whom are also shareholders, have and are continuing to cooperate with the company in order to resolve the matters in the best interest of all parties.

 

The $350,000 secured short-term note issued on January 20, 2023, was past due as of September 30, 2023. We are continuing to accrue interest at the stated rate of 8% per annum, which is a total of approximately $19,400 as of the date of this report, until the loan is paid in full, or an extension agreement is reached with the lender. We are in on-going discussions with our lenders regarding the terms and conditions of the respective loans. Although we have not obtained a written waiver(s) or entered into an amendment(s) formally extending or revising debt terms in all instances, the lenders, most of whom are also shareholders, have and are continuing to cooperate with the company in order to resolve the matters in the best interest of all parties.

 

ITEM 4. MINE SAFETY DISCLOSURES

 

Not Applicable.

 

28
 

 

ITEM 5. OTHER INFORMATION

 

None.

 

ITEM 6. EXHIBITS

 

EXHIBIT INDEX

 

31.1*   Certification of Principal Executive Officer pursuant to Rule 13a-14(a) under the Securities Exchange Act of 1934
31.2*   Certification of Principal Financial Officer pursuant to Rule 13a-14(a) under the Securities Exchange Act of 1934
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
101.INS***   Inline XBRL Instance Document
101.SCH***   Inline XBRL Taxonomy Extension Schema Document
101.CAL***   Inline XBRL Taxonomy Extension Calculation Linkbase Document
101.DEF***   Inline XBRL Taxonomy Extension Definition Linkbase Document
101.LAB***   Inline XBRL Taxonomy Extension Label Linkbase Document
101.PRE***   Inline XBRL Taxonomy Extension Presentation Linkbase Document
104   Cover Page Interactive Data File (embedded within the Inline XBRL document)

 

* Filed herewith.
   
** This certification is deemed not filed for purposes of section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liability of that section, nor shall it be deemed incorporated by reference into any filing under the Securities Act of 1933, as amended or the Exchange Act.
   
*** Pursuant to applicable securities laws and regulations, these interactive data files will not be deemed “filed” for the purposes of Section 18 of the Securities and Exchange Act of 1934 or otherwise subject to the liability of that section, nor will they be deemed filed or made a part of a registration statement or prospectus for purposes of Sections 11 and 12 of the Securities Act of 1933, or otherwise subject to liability under those sections.

 

29
 

 

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.

 

Dated: November 13, 2023

STRATEGIC ENVIRONMENTAL & ENERGY

RESOURCES, INC.

     
  By /s/ J. John Combs III
    J. John Combs III
    Chief Executive Officer with Responsibility to sign on behalf of Registrant as a duly authorized officer and principal executive officer
     
  By /s/ Clark Knopik
    Clark Knopik
    Interim Chief Financial Officer with responsibility to sign on behalf of Registrant as a duly authorized officer and principal financial officer

 

30

 

 

EXHIBIT 31.1

 

CERTIFICATION OF CHIEF EXECUTIVE OFFICER

PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

 

I, J. John Combs III, certify that:

 

1. I have reviewed this Form 10-Q for the period ended September 30, 2023, of Strategic Environmental & Energy Resources, 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(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 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(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

 

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

 

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

 

Dated: November 13, 2023  
  /s/ J. John Combs III
  J. John Combs III

 

 

 

 

EXHIBIT 31.2

 

CERTIFICATION OF THE CHIEF FINANCIAL OFFICER

PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

 

I, Clark Knopik, certify that:

 

1. I have reviewed this Form 10-Q for the period ended September 30, 2023, of Strategic Environmental & Energy Resources, 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(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 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(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

 

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

 

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

 

Dated: November 13, 2023  
  /s/ Clark Knopik
  Clark Knopik

 

 

 

 

EXHIBIT 32.1

 

CERTIFICATION OF THE CHIEF EXECUTIVE OFFICER

Pursuant to 18 U.S.C. 1350

(Section 906 of the Sarbanes-Oxley Act of 2002)

 

In connection with the Strategic Environmental & Energy Resources, Inc. (the “Company”) Quarterly Report on Form 10-Q for the period ended September 30, 2023, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, J. John Combs III, Chief Executive Officer of the Company, certify, pursuant to 18 U.S.C. Section 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 consolidated financial condition and results of operations of the Company.

 

Dated: November 13, 2023

 

  /s/ J. John Combs III
  J. John Combs III
  President and Chief Executive Officer

 

 

 

 

EXHIBIT 32.2

 

CERTIFICATION OF THE CHIEF FINANCIAL OFFICER

Pursuant to 18 U.S.C. 1350

(Section 906 of the Sarbanes-Oxley Act of 2002)

 

In connection with the Strategic Environmental & Energy Resources, Inc. (the “Company”) Quarterly on Form 10-Q for the period ended September 30, 2023, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Clark Knopik, Interim Chief Financial Officer of the Company, certify, pursuant to 18 U.S.C. Section 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 consolidated financial condition and results of operations of the Company.

 

Dated: November 13, 2023

 

  /s/ Clark Knopik
  Clark Knopik
  Interim Chief Financial Officer

 

 

 

v3.23.3
Cover - shares
 9 Months Ended
Sep. 30, 2023
Nov. 13, 2023
Cover [Abstract]    
Document Type 10-Q  
Amendment Flag false  
Document Quarterly Report true  
Document Transition Report false  
Document Period End Date Sep. 30, 2023  
Document Fiscal Period Focus Q3  
Document Fiscal Year Focus 2023  
Current Fiscal Year End Date --12-31  
Entity File Number 000-54987  
Entity Registrant Name Strategic Environmental & Energy Resources, Inc.  
Entity Central Index Key 0001576197  
Entity Tax Identification Number 02-0565834  
Entity Incorporation, State or Country Code NV  
Entity Address, Address Line One 370 Interlocken Blvd  
Entity Address, Address Line Two Suite 680  
Entity Address, City or Town Broomfield  
Entity Address, State or Province CO  
Entity Address, Postal Zip Code 80021  
City Area Code 303  
Local Phone Number 277-1625  
Entity Current Reporting Status Yes  
Entity Interactive Data Current Yes  
Entity Filer Category Non-accelerated Filer  
Entity Small Business true  
Entity Emerging Growth Company false  
Entity Shell Company false  
Entity Common Stock, Shares Outstanding   65,088,575
v3.23.3
Condensed Consolidated Balance Sheets - USD ($)
Sep. 30, 2023
Dec. 31, 2022
 [1]
Current Assets    
Cash and cash equivalents $ 49,900 $ 21,500
Accounts receivable, net of allowance for credit losses of $168,300 390,800 640,500
Inventory 16,400 9,400
Contract assets 17,300 138,700
Prepaid expenses and other current assets 87,100 85,800
Assets held for sale 54,300 217,200
Total Current Assets 615,800 1,113,100
Property and equipment, net 23,900 38,600
Intangible Assets, net 18,600 20,700
Right of use assets 206,500 249,700
Investments 182,200 182,200
Other assets 40,000 40,100
TOTAL ASSETS 1,087,000 1,644,400
Current Liabilities    
Accounts payable 753,900 1,044,700
Accrued liabilities 3,564,000 2,953,800
Contract liabilities 656,800 536,000
Deferred revenue 14,600
Short term notes 4,248,200 3,518,000
Short term notes and accrued interest - related party 194,200 184,000
Convertible notes 1,605,000 1,605,000
Current portion of long term debt and capital lease obligations 504,400 504,300
Current portion of lease liabilities 70,000 63,100
Liabilities held for sale 54,000 85,500
Total Current Liabilities 11,665,100 10,494,400
Lease liabilities net of current portion 164,400 217,400
Long term debt 1,837,200 1,840,600
Total Liabilities 13,666,700 12,552,400
Commitments and contingencies
Stockholders’ deficit    
Preferred stock; $.001 par value; 5,000,000 shares authorized; -0- shares issued
Common stock; $.001 par value; 70,000,000 shares authorized; 65,088,575 shares issued, issuable* and outstanding September 30, 2023  and December 31, 2022 65,100 65,100
Common stock issuable 25,000 25,000
Additional paid-in capital 22,973,800 22,973,800
Stock Subscription receivable (25,000) (25,000)
Accumulated deficit (33,675,300) (32,005,100)
Total stockholders’ deficit (10,636,400) (8,966,200)
Non-controlling interest (1,943,300) (1,941,800)
Total Deficit (12,579,700) (10,908,000)
TOTAL LIABILITIES AND STOCKHOLDERS’ DEFICIT $ 1,087,000 $ 1,644,400
[1] Derived from audited information
v3.23.3
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($)
Sep. 30, 2023
Dec. 31, 2022
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]    
Allowance for credit losses $ 168,300 $ 168,300
Preferred stock, par value $ 0.001 $ 0.001
Preferred stock, shares authorized 5,000,000 5,000,000
Preferred stock, shares issued 0 0
Common stock, par value $ 0.001 $ 0.001
Common stock, shares authorized 70,000,000 70,000,000
Common stock, shares issued [1] 65,088,575 65,088,575
Common stock, shares outstanding 65,088,575 65,088,575
Common stock, shares issuable [1] 65,088,575 65,088,575
Note Agreements [Member]    
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]    
Common stock, shares issuable 2,785,000 2,785,000
[1] Includes 2,785,000 shares issuable as of September 30, 2023, and December 31, 2022, per terms of note agreements.
v3.23.3
Condensed Consolidated Statements of Operations (Unaudited) - USD ($)
 3 Months Ended 9 Months Ended
Sep. 30, 2023
Sep. 30, 2022
Sep. 30, 2023
Sep. 30, 2022
Revenue:        
Total revenue $ 870,300 $ 1,142,400 $ 2,154,700 $ 3,052,100
Operating expenses:        
Products costs 594,500 876,300 1,578,400 2,232,800
Solid waste costs 14,800
General and administrative expenses 194,400 223,700 852,500 776,000
Salaries and related expenses 312,900 257,400 921,500 916,600
Total operating expenses 1,101,800 1,357,400 3,352,400 3,940,200
Loss from operations (231,500) (215,000) (1,197,700) (888,100)
Other income (expense):        
Interest expense (222,400) (197,600) (654,000) (575,200)
Gain on debt extinguishment 96,600
Other income (expense) 100 20,100 77,500
Total non-operating expense, net (222,400) (197,500) (633,900) (401,100)
Loss from continuing operations (453,900) (412,500) (1,831,600) (1,289,200)
Income (loss) from discontinued operations, net of tax (400) (197,800) 159,900 (253,100)
Net Loss (454,300) (610,300) (1,671,700) (1,542,300)
Less: Net income (loss) attributable to non-controlling interest (2,200) (10,800) (1,500) (33,000)
Net Loss attributable to SEER common stockholders $ (452,100) $ (599,500) $ (1,670,200) $ (1,509,300)
Basic earnings per share attributable to SEER common stockholders        
Loss from continuing operations, per share $ (0.01) $ (0.01) $ (0.03) $ (0.02)
Income from discontinued operations, per share (0.00) (0.00) 0.00 (0.00)
Net Loss per share, basic (0.01) (0.01) (0.03) (0.02)
Fully diluted earnings per share attributable to SEER common stockholders        
Loss from continuing operations, per share (0.01) (0.01) (0.03) (0.02)
Income from discontinued operations, per share (0.00) (0.00) 0.00 (0.00)
Net Loss per share, basic $ (0.01) $ (0.01) $ (0.03) $ (0.02)
Weighted average shares outstanding – basic 65,088,575 65,088,575 65,088,575 65,088,575
Weighted average shares outstanding – diluted 65,088,575 65,088,575 65,088,575 65,088,575
Product [Member]        
Revenue:        
Total revenue $ 870,300 $ 1,142,400 $ 2,154,700 $ 2,952,100
Solid Waste [Member]        
Revenue:        
Total revenue $ 100,000
v3.23.3
Condensed Consolidated Statement of Changes in Stockholders' Deficit (Unaudited) - USD ($)
Preferred Stock [Member]
Common Stock [Member]
Additional Paid-in Capital [Member]
Common Stock Subscribed [Member]
Stock Subscription Receivable [Member]
Retained Earnings [Member]
Noncontrolling Interest [Member]
Total
Balance at Dec. 31, 2021 $ 65,100 $ 22,973,800 $ 25,000 $ (25,000) $ (29,364,800) $ (1,870,600) $ (8,196,500)
Balance, shares at Dec. 31, 2021 65,088,600            
Net income (loss) (386,600) (4,100) (390,700)
Balance at Mar. 31, 2022 $ 65,100 22,973,800 25,000 (25,000) (29,751,400) (1,874,700) (8,587,200)
Balance, shares at Mar. 31, 2022 65,088,600            
Balance at Dec. 31, 2021 $ 65,100 22,973,800 25,000 (25,000) (29,364,800) (1,870,600) (8,196,500)
Balance, shares at Dec. 31, 2021 65,088,600            
Net income (loss)               (1,542,300)
Balance at Sep. 30, 2022 $ 65,100 22,973,800 25,000 (25,000) (30,874,000) (1,903,700) (9,738,800)
Balance, shares at Sep. 30, 2022 65,088,600            
Balance at Mar. 31, 2022 $ 65,100 22,973,800 25,000 (25,000) (29,751,400) (1,874,700) (8,587,200)
Balance, shares at Mar. 31, 2022 65,088,600            
Net income (loss) (523,100) (18,200) (541,300)
Balance at Jun. 30, 2022 $ 65,100 22,973,800 25,000 (25,000) (30,274,500) (1,892,900) (9,128,500)
Balance, shares at Jun. 30, 2022 65,088,600            
Net income (loss) (599,500) (10,800) (610,300)
Balance at Sep. 30, 2022 $ 65,100 22,973,800 25,000 (25,000) (30,874,000) (1,903,700) (9,738,800)
Balance, shares at Sep. 30, 2022 65,088,600            
Balance at Dec. 31, 2022 $ 65,100 22,973,800 25,000 (25,000) (32,005,100) (1,941,800) (10,908,000) [1]
Balance, shares at Dec. 31, 2022 65,088,600            
Net income (loss) (779,400) 2,800 (776,600)
Balance at Mar. 31, 2023 $ 65,100 22,973,800 25,000 (25,000) (32,784,500) (1,939,000) (11,684,600)
Balance, shares at Mar. 31, 2023 65,088,600            
Balance at Dec. 31, 2022 $ 65,100 22,973,800 25,000 (25,000) (32,005,100) (1,941,800) (10,908,000) [1]
Balance, shares at Dec. 31, 2022 65,088,600            
Net income (loss)               (1,671,700)
Balance at Sep. 30, 2023 $ 65,100 22,973,800 25,000 (25,000) (33,675,300) (1,943,300) (12,579,700)
Balance, shares at Sep. 30, 2023 65,088,600            
Balance at Mar. 31, 2023 $ 65,100 22,973,800 25,000 (25,000) (32,784,500) (1,939,000) (11,684,600)
Balance, shares at Mar. 31, 2023 65,088,600            
Net income (loss) (438,700) (2,100) (440,800)
Balance at Jun. 30, 2023 $ 65,100 22,973,800 25,000 (25,000) (33,223,200) (1,941,100) (12,125,400)
Balance, shares at Jun. 30, 2023 65,088,600            
Net income (loss) (452,100) (2,200) (454,300)
Balance at Sep. 30, 2023 $ 65,100 $ 22,973,800 $ 25,000 $ (25,000) $ (33,675,300) $ (1,943,300) $ (12,579,700)
Balance, shares at Sep. 30, 2023 65,088,600            
[1] Derived from audited information
v3.23.3
Condensed Consolidated Statement of Cash Flows (Unaudited) - USD ($)
 9 Months Ended
Sep. 30, 2023
Sep. 30, 2022
Cash flows from operating activities:    
Loss from continuing operations $ (1,831,600) $ (1,289,200)
Loss from discontinued operations 159,900 (253,100)
Net Loss (1,671,700) (1,542,300)
Adjustments to reconcile net loss to net cash provided by operating activities:    
Depreciation and amortization 16,800 76,600
Gain on sale of assets held for sale (175,600)
Gain on debt distinguishment (96,600)
Bad debt (10,900) 19,800
Changes in operating assets and liabilities:    
Accounts receivable 260,600 (351,100)
Contract assets 121,400 (72,800)
Inventory (7,000) 179,400
Prepaid expenses and other assets 93,200 29,800
Accounts payable, accrued liabilities, and customer deposits 350,300 893,900
Contract liabilities 120,800 (5,500)
Deferred revenue 14,600 9,700
Assets and Liabilities held for sale (31,500)
Net cash used in operating activities (919,000) (859,100)
Cash flows from investing activities:    
Purchase of property and equipment (31,800)
Proceeds from the sale of assets held for sale 338,500
Net cash (used) provided by investing activities 338,500 (31,800)
Cash flows from financing activities:    
Payments of notes and capital lease obligations (241,100) (71,800)
Proceeds from short-term and long-term debt 850,000 919,300
Net cash provided by financing activities 608,900 847,500
Effect of exchange rate changes on cash  
Net increase (decrease) in cash 28,400 (43,400)
Cash at the beginning of period 21,500 188,800
Cash at the end of period 49,900 145,400
Supplemental disclosures of cash flow information:    
Cash paid for interest 23,500 34,600
Investment in PSMW 182,200
Financing of prepaid insurance premiums 51,100 36,800
Non-cash repayment of debt 50,800
Non-cash repayment of debt - PPP Loan 96,600
Non-cash payment of interest $ 15,400
v3.23.3
ORGANIZATION AND FINANCIAL CONDITION
 9 Months Ended
Sep. 30, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
ORGANIZATION AND FINANCIAL CONDITION

NOTE 1 – ORGANIZATION AND FINANCIAL CONDITION

 

Organization and Going Concern

 

Strategic Environmental & Energy Resources, Inc. (“SEER,” or the “Company”), a Nevada corporation, is a provider of next-generation clean-technologies, waste management innovations and related services. SEER has two wholly owned operating subsidiaries and three majority-owned subsidiaries; all of which together provide technology solutions and services to companies primarily in the oil and gas, refining, landfill, food, beverage & agriculture, and renewable fuel industries. The two wholly owned subsidiaries include: 1) MV, LLC (d/b/a MV Technologies) (“MV”), designs and builds biogas conditioning solutions for the production of renewable natural gas, odor control systems and natural gas vapor capture primarily for landfill operations, waste-water treatment facilities, oil and gas fields, refineries, municipalities and food, beverage & agriculture operations throughout the U.S.; 2) Strategic Environmental Materials, LLC, (“SEM”), is a materials technology company focused on development of cost-effective chemical absorbents. SEM was discontinued in 2023 due to its products not meeting customer requirements.

 

The three majority-owned subsidiaries are 1) Paragon Waste Solutions, LLC (“PWS”), 2) PelleChar, LLC (“PelleChar”), and 3) Benefuels, LLC (“Benefuels”). PWS is currently owned 54% by SEER, PelleChar is owned 51% by SEER, and Benefuels is owned 85% by SEER. Benefuels, focuses specifically on treating biogas for conversion to pipeline quality gas and/or compressed natural gas (“CNG”) for fleet vehicle fuel.

 

PWS developed specific opportunities to deploy and commercialize patented technologies for a non-thermal plasma-assisted oxidation process that makes possible the clean and efficient destruction of solid hazardous chemical and biological waste (i.e., regulated medical waste, chemicals, pharmaceuticals, and refinery tank waste, etc.) without landfilling or traditional incineration and without harmful emissions. Additionally, this technology “cleans” and conditions emissions and gaseous waste streams (i.e., volatile organic compounds and other greenhouse gases) generated from diverse sources such as refineries, oil fields, and many others. In July 2022, the Company exchanged its patents and related technology, to its joint venture, Paragon Southwest Medical Waste (“PSMW”), in exchange for units in PSMW. The Company exchanged its interest in PSMW for 2% of Amlon Holdings in June 2023 when PSMW was acquired by Amlon Holdings. (See Note 9)

 

PelleChar was established in September 2018 and is owned 51% by SEER. Pellechar has secured third-party pellet manufacturing capabilities from one of the nation’s premier pellet manufacturers. Working closely with Biochar Now, LLC, Pellechar commenced sales in late 2019 of its proprietary pellets containing the proven and superior Biochar Now product starting with the landscaping and big agriculture markets. At this time, Pellechar is the only company able to offer a soil amendment pellet containing the Biochar Now product that is produced using the patented pyrolytic process.

 

Principals of Consolidation

 

The accompanying consolidated financial statements include the accounts of SEER, its wholly owned subsidiaries, SEM, and MV, and its majority-owned subsidiaries PWS and PelleChar, since their respective acquisition or formation dates. All material intercompany accounts, transactions, and profits have been eliminated in consolidation. The Company has non-controlling interest in joint ventures, which are reported on the equity method.

 

Going Concern

 

As shown in the accompanying consolidated financial statements, the Company has experienced recurring losses, and has accumulated a deficit of approximately $33.7 million as of September 30, 2023, and $32.0 million as of December 31, 2022. For the nine months ended September 30, 2023, the Company incurred a net loss of approximately $1.7 million and for the nine months ended September 30, 2022, the Company incurred a net loss of approximately $1.5 million. The Company had a working capital deficit of approximately $11.0 million as of September 30, 2023, and a working capital deficit of $9.4 million as of December 31, 2022. These factors raise substantial doubt about the ability of the Company to continue to operate as a going concern.

 

 

Realization of a major portion of the Company’s assets as of September 30, 2023, is dependent upon continued operations. The Company is dependent on generating additional revenue or obtaining adequate capital to fund operating losses until it becomes profitable. For the nine months ended September 30, 2023, the Company raised approximately $0.9 million from the issuance of short-term and long-term debt, for a net cash provided by financing activities of approximately $0.6 million. In addition, the Company has undertaken a number of specific steps to continue to operate as a going concern. The Company continues to focus on developing organic growth in our operating companies and improving gross and net margins through increased attention to pricing, aggressive cost management and overhead reductions, including discontinuing SEM, a line of business with historically insufficient margins. The Company has limited common shares available for issue which may limit the ability to raise capital or settle debt through issuance of shares. The Company has increased business development efforts to address opportunities identified in expanding markets attributable to increased interest in energy conservation and emission control regulations. In addition, the Company is evaluating various forms of financing which may be available to it. There can be no assurance that the Company will secure additional financing for working capital, increase revenues and achieve the desired result of net income and positive cash flow from operations in future years. These financial statements do not give any effect to any adjustments that would be necessary should the Company be unable to report on a going concern basis.

 

Basis of Presentation Unaudited Interim Financial Information

 

The accompanying interim condensed consolidated financial statements are unaudited. In the opinion of management, the accompanying unaudited condensed consolidated financial statements contain all the normal recurring adjustments necessary to present fairly the financial position and results of operations as of and for the periods presented. The interim results are not necessarily indicative of the results to be expected for the full year or any future period.

 

Certain information and footnote disclosures normally included in the consolidated financial statements prepared in accordance with accounting principles generally accepted in the United States have been condensed or omitted pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). The Company believes that the disclosures are adequate to make the interim information presented not misleading. These consolidated financial statements should be read in conjunction with the Company’s audited consolidated financial statements and the notes thereto included in the Company’s Report on Form 10-K filed on April 14, 2023, for the year ended December 31, 2022.

 
v3.23.3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
 9 Months Ended
Sep. 30, 2023
Accounting Policies [Abstract]  
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

 

Use of Estimates

 

The preparation of these consolidated financial statements in conformity with accounting principles generally accepted in the United States (U.S. GAAP) requires management to make a number of estimates and assumptions related to the reported amount of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the period. Significant items subject to such estimates and assumptions include the forecasted cash flows used in the impairment testing of goodwill and intangible assets. The carrying amount of intangible assets; valuation allowances and reserves for receivables; revenue recognition related to contracts accounted for under the percentage of completion method; and the Company’s ability to continue as a going concern. Actual results could differ from those estimates.

 

Reclassifications

 

Certain amounts in the prior period financial statements have been reclassified to conform to the current period presentation. These reclassifications had no effect on reported consolidated net loss.

 

Revenue Recognition

 

In May 2014, the FASB issued guidance on revenue from contracts with customers that superseded most current revenue recognition guidance, including industry-specific guidance. The underlying principle of the guidance is to recognize revenue to depict the transfer of goods or services to customers at an amount to which the company expects to be entitled in exchange for those goods or services. The new guidance requires an evaluation of revenue arrangements with customers following a five-step approach: (1) identify the contract with a customer; (2) identify the performance obligations in the contract; (3) determine the transaction price; (4) allocate the transaction price to the performance obligations; and (5) recognize revenue when (or as) the company satisfies each performance obligation. Revenues are recognized when control of the promised services are transferred to the customers in an amount that reflects the expected consideration in exchange for those services. A customer obtains control when it has the ability to direct the use of and obtain the benefits from the services. Other major provisions of the guidance include capitalization of certain contract costs, consideration of the time value of money in the transaction price and allowing estimates of variable consideration to be recognized before contingencies are resolved in certain circumstances. The guidance also requires enhanced disclosures regarding the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. (See Note 3)

 

 

Research and Development

 

Research and development (“R&D”) costs are charged to expense as incurred. R&D expenses consist primarily of salaries, project materials, contract labor and other costs associated with ongoing product development and enhancement efforts. R&D expenses were $0 for both the nine months ended September 30, 2023, and 2022.

 

Inventories

 

Inventories are stated at the lower of cost or net realizable value on a first in, first out basis and includes the following amounts:

 

   September 30, 2023   December 31, 2022 
   (unaudited)     
Finished goods  $16,400   $9,400 
           
Inventory, net  $16,400   $9,400 

 

Income Taxes

 

The Company accounts for income taxes pursuant to Accounting Standards Codification (“ASC”) 740, Income Taxes, which utilizes the asset and liability method of computing deferred income taxes. The objective of this method is to establish deferred tax assets and liabilities for any temporary differences between the financial reporting basis and the tax basis of the Company’s assets and liabilities at enacted tax rates expected to be in effect when such amounts are realized or settled.

 

ASC 740 also provides detailed guidance for the financial statement recognition, measurement and disclosure of uncertain tax positions recognized in the financial statements. Tax positions must meet a “more-likely-than-not” recognition threshold at the effective date to be recognized. During the nine months ended September 30, 2023, and 2022 the Company recognized no adjustments for uncertain tax positions.

 

The Company recognizes interest and penalties related to uncertain tax positions in income tax expense. No interest and penalties related to uncertain tax positions were recognized as of September 30, 2023, and 2022. The Company expects no material changes to unrecognized tax positions within the next twelve months.

 

The Company has filed federal and state tax returns through December 31, 2022. The tax periods for the years ending December 31, 2020, through 2022 are open to examination by federal and state authorities.

 
v3.23.3
REVENUE
 9 Months Ended
Sep. 30, 2023
Revenue:  
REVENUE

NOTE 3 – REVENUE

 

Products Revenue

 

Product revenue generated from contracts with customers, for the manufacture of products for the removal and treatment of hazardous vapor and gases. Total estimated revenue includes all of the following: (1) the basic contract price, (2) contract options, and (3) change orders. Once contract performance is underway, the Company may experience changes in conditions, client requirements, specifications, designs, materials, and expectations regarding the period of performance. Such changes are “change orders” and may be initiated by us or by our clients. In many cases, agreement with the client as to the terms of change orders is reached prior to work commencing; however, sometimes circumstances require that work progress without obtaining client agreement. Revenue related to change orders is recognized as costs are incurred if it is probable that costs will be recovered by changing the contract price. The Company does not incur pre-contract costs. Under the new revenue recognition guidance, the Company found no change in the manner product revenue is recognized. Provisions for estimated losses on uncompleted contracts are recorded in the period in which the losses are identified and included as additional loss. Provisions for estimated losses on contracts are shown separately as liabilities on the balance sheet, if significant, except in circumstances in which related costs are accumulated on the balance sheet, in which case the provisions are deducted from the accumulated costs. A provision as a liability is reported as a current liability.

 

The Company includes in current assets and current liabilities amounts related to contracts realizable and payable. Costs and estimated earnings in excess of billings on uncompleted contracts represent the excess of contract costs and profits recognized to date over billings to date and are recognized as a current asset. Revenue contract liabilities represent the excess of billings to date over the amount of contract costs and profits recognized to date and are recognized as a current liability.

 

Products revenue also includes media sales which are recognized as the product is shipped to the customer for use.

 

 

Disaggregation of Revenue (Unaudited)

 

   Environmental Solutions   Solid Waste   Total 
   Three months ended September 30, 2023 
   Environmental Solutions   Solid Waste   Total 
             
Sources of Revenue               
Product sales  $673,100   $-   $673,100 
Media sales   197,200    -    197,200 
Total Revenue  $870,300   $          -   $870,300 

 

   Environmental Solutions   Solid Waste   Total 
   Three months ended September 30, 2022 
   Environmental Solutions   Solid Waste   Total 
             
Sources of Revenue               
Product sales   904,300    -    904,300 
Media sales   238,100    -    238,100 
Management fees   -    -    - 
Total Revenue  $1,142,400   $        -   $1,142,400 

 

   Environmental Solutions   Solid Waste   Total 
   Nine months ended September 30, 2023 
   Environmental Solutions   Solid Waste   Total 
             
Sources of Revenue               
Product sales  $1,536,000   $-   $1,536,000 
Media sales   618,700    -    618,700 
Total Revenue  $2,154,700   $          -   $2,154,700 

 

   Environmental Solutions   Solid Waste   Total 
   Nine months ended September 30, 2022 
   Environmental Solutions   Solid Waste   Total 
Sources of Revenue            
Product sales  $2,310,700    -   $2,310,700 
Media sales   641,400    -    641,400 
Management fees   -    100,000    100,000 
Total Revenue  $2,952,100   $100,000   $3,052,100 

 

Contract Balances

 

Where a performance obligation has been satisfied but not yet invoiced at the reporting date, a contract asset is recognized on the balance sheet. Where a performance obligation has not yet been satisfied but an invoice has been raised at the reporting date, a contract liability is recognized on the balance sheet.

 

 

The opening and closing balances of the Company’s accounts receivables and contract liabilities (current and non-current) are as follows:

 

           Contract Liabilities 
   Accounts Receivable,   Contract   Contract   Deferred Revenue   Deferred Revenue 
   net   Assets   Liabilities   (current)   (non-current) 
Balance as of September 30, 2023 (unaudited)  $390,800   $17,300   $656,800   $14,600   $- 
                          
Balance as of December 31, 2022   640,500    138,700    536,000    -    - 
                                         
Increase (decrease)  $(249,700)  $(121,400)  $120,800   $14,600   $- 

 

The majority of the Company’s revenue is generally invoiced on a weekly or monthly basis, and the payments are generally received within approximately 30-60 days. Contract liabilities are recorded when cash payments are received or due in advance of the Company’s performance, including amounts that are refundable.

 

Remaining Performance Obligations

 

As of September 30, 2023, the aggregate amount of the transaction price allocated to the remaining performance obligations was approximately $1.0 million, of which the Company expects to recognize approximately 85% of this revenue over the next 12 months.

 

The Company does not disclose the value of unsatisfied performance obligations for (i) contracts with an original expected term of one year or less and (ii) contracts for which the Company recognizes revenue at the amounts to which it has the right to invoice for services performed.

 
v3.23.3
PROPERTY AND EQUIPMENT
 9 Months Ended
Sep. 30, 2023
Property, Plant and Equipment [Abstract]  
PROPERTY AND EQUIPMENT

NOTE 4 – PROPERTY AND EQUIPMENT

 

Property and equipment was comprised of the following:

 

   September 30, 2023   December 31, 2022 
   (unaudited)     
Field and shop equipment  $452,900   $395,000 
Vehicles   72,500    72,500 
Waste destruction equipment, placed in service   -    - 
Furniture and office equipment   293,400    333,800 
Leasehold improvements   36,200    36,200 
Building and improvements   -    - 
Land   -    - 
 Property and equipment, gross    855,000    837,500 
Less: accumulated depreciation and amortization   (831,100)   (798,900)
Property and equipment, net  $23,900   $38,600 
           
Classified as assets held for sale   54,300    217,200 
           
Assets fair value disclosure total  $78,200   $255,800 

 

Depreciation expense for the three months ended September 30, 2023, and 2022 was $4,900 and $13,100, respectively. For the three months ended September 30, 2023, and 2022, depreciation expense included in cost of goods sold was $4,900 and $12,100, respectively. For the three months ended September 30, 2023, and 2022, depreciation expense included in selling, general and administrative expenses was $0 and $1,000, respectively.

 

 

Depreciation expense for the nine months ended September 30, 2023, and 2022 was $14,700 and $61,100, respectively. For the nine months ended September 30, 2023, and 2022, depreciation expense included in cost of goods sold was $14,700 and $50,300, respectively. For the nine months ended September 30, 2023, and 2022, depreciation expense included in selling, general and administrative expenses was $0 and $10,800, respectively.

 
v3.23.3
INTANGIBLE ASSETS
 9 Months Ended
Sep. 30, 2023
Goodwill and Intangible Assets Disclosure [Abstract]  
INTANGIBLE ASSETS

NOTE 5 – INTANGIBLE ASSETS

 

   September 30, 2023 
   Gross carrying amount   Accumulated amortization   Impairment   Net carrying value 
   (unaudited)   (unaudited)   (unaudited)   (unaudited) 
Goodwill  $-   $-   $-   $- 
Customer list   42,500    (42,500)   -    - 
Technology   684,000    (665,400)   -    18,600 
Trade name   54,900    (54,900)   -    - 
   $781,400   $(762,800)  $-   $18,600 

 

   December 31, 2022 
   Gross carrying amount   Accumulated amortization   Impairment   Net carrying value 
                 
Goodwill  $277,800   $-   $(277,800)  $- 
Customer list   42,500    (42,500)   -    - 
Technology   875,900    (813,300)   (41,900)   20,700 
Trade name   54,900    (54,900)   -    - 
   $1,251,100   $(910,700)  $(319,700)  $20,700 

 

The estimated useful lives of the intangible assets range from seven to twenty years. Amortization expense was $700 and $4,400 for the three months ended September 30, 2023, and 2022, respectively. Amortization expense was $2,100 and $15,500 for the nine months ended September 30, 2023, and 2022, respectively.

 
v3.23.3
LEASES
 9 Months Ended
Sep. 30, 2023
Lessee Disclosure [Abstract]  
LEASES

NOTE 6 – LEASES

 

The Company has entered into operating leases primarily for real estate. These leases have terms which range from 1 to 8 years, and often include one or more options to renew. These renewal terms can extend the lease term from 1 year to month-to-month and are included in the lease term when it is reasonably certain that the Company will exercise the option. These operating leases are included in “Right of use assets” on the Company’s September 30, 2023, Consolidated Balance Sheets and represent the Company’s right to use the underlying asset for the lease term. The Company’s obligation to make lease payments are included in “Current portion of lease liabilities” and “Lease liabilities net of current portion” on the Company’s September 30, 2023, Consolidated Balance Sheets. As of September 30, 2023, total right-of-use assets and operating lease liabilities were approximately $206,500 and $234,400, respectively. All operating lease expense is recognized on a straight-line basis over the lease term. In the nine months ended September 30, 2023, the Company recognized approximately $62,700 in operating lease costs for right-of-use assets.

 

Because the rate implicit in each lease is not readily determinable, the Company uses its incremental borrowing rate to determine the present value of the lease payments. The Company has certain contracts for real estate which may contain lease and non-lease components which it has elected to treat as a single lease component.

 

 

Information related to the Company’s right-of-use assets and related lease liabilities were as follows (unaudited):

 

   For the Nine Months Ended September 30, 
   2023   2022 
         
Cash paid for operating lease liabilities  $123,500   $63,000 
Weighted-average remaining lease term   35 months    50 months 
Weighted-average discount rate   10%   10%

 

Maturities of lease liabilities as of September 30, 2023 were as follows:

 

      
2023  $90,300 
2024   92,900 
2025   87,600 
2026   - 
2027   - 
Thereafter   - 
 Total operating lease   270,800 
Less imputed interest   (36,400)
Total lease liabilities   234,400 

 
v3.23.3
ACCRUED LIABILITIES
 9 Months Ended
Sep. 30, 2023
Payables and Accruals [Abstract]  
ACCRUED LIABILITIES

NOTE 7 – ACCRUED LIABILITIES

 

Accrued liabilities were comprised of the following:

 

   September 30,    December 31, 
   2023   2022 
   (unaudited)     
Accrued compensation and related taxes  $97,300   $81,900 
Accrued interest   3,182,700    2,562,300 
Accrued settlement/litigation claims   150,000    150,000 
Warranty and defect claims   65,300    57,000 
Other   68,700    102,600 
Total Accrued Liabilities  $3,564,000   $2,953,800 

 
v3.23.3
UNCOMPLETED CONTRACTS
 9 Months Ended
Sep. 30, 2023
Contractors [Abstract]  
UNCOMPLETED CONTRACTS

NOTE 8 – UNCOMPLETED CONTRACTS

 

Costs, estimated earnings and billings on uncompleted contracts are as follows:

 

   September 30,   December 31, 
   2023   2022 
   (unaudited)     
Revenue recognized  $621,900   $440,200 
Less: billings to date   (604,600)   (301,500)
           
Contract assets   17,300    138,700 
           
Billings to date   1,807,900    2,849,400 
Revenue recognized   (1,151,100)   (2,313,400)
           
Contract liabilities  $656,800   $536,000 

 

 
v3.23.3
INVESTMENTS
 9 Months Ended
Sep. 30, 2023
Investments, All Other Investments [Abstract]  
INVESTMENTS

NOTE 9 – INVESTMENTS

 

Paragon Waste Solutions LLC

 

Since its inception through September 30, 2023, the Company has provided approximately $6.4 million in funding to PWS for working capital and the further development and construction of various prototypes and commercial waste destruction units. No members of PWS have made capital contributions or other funding to PWS other than SEER. The intent of the operating agreement is to provide the funding as an advance against future earnings distributions made by PWS.

 

Paragon Southwest Medical Waste

 

On July 20, 2022, PWS transferred all patents owned covering medical waste destruction, and related technology, to its joint venture, Paragon Southwest Medical Waste (“PSMW”), in exchange for units in PSMW. The units in PSMW transferred in connection with this transaction increased SEER’s equity in PSMW to approximately 30%, on a total consolidated basis. This transaction also canceled the irrevocable license and royalty agreement, and the management agreement between PWS and PSMW.

 

On June 30, 2023, the Company exchanged its interest in PSMW in exchange for a 2% interest in Amlon Holdings when PSWM was acquired by Amlon Holdings.

 
v3.23.3
DEBT
 9 Months Ended
Sep. 30, 2023
Debt Disclosure [Abstract]  
DEBT

NOTE 10 – DEBT

 

Debt as of September 30, 2023 (Unaudited), and December 31, 2022, was comprised of the following:

 

   Short term notes   Convertible notes, unsecured   Current portion of long-term debt and capital lease obligations   Long term debt   Total 
                     
Balance December 31, 2022  $3,518,000   $1,605,000   $504,300   $1,840,600   $7,467,900 
Increase in borrowing   901,100 (1)   -    -    -    901,100 
Principal reductions   (170,900)   -    (3,300)   -    (174,200)
Long term debt to current   -    -    3,400    (3,400)   - 
Amortization of debt discount   -    -    -    -    - 
Balance September 30, 2023  $ 4,248,200 (2)  $1,605,000   $504,400   $ 1,837,200 (3)  $8,194,800 

 

   (1) A) Secured note payable of $350,000, secured by certain real estate and equity, dated January 20, 2023, interest at an annual rate of 8.0% simple interest and matures on October 18, 2023. For the nine months ended September 30, 2023, the Company recorded interest expense of $19,400. There was $19,400 accrued and unpaid interest as of September 30, 2023. B) A secured note payable of $300,000, secured by real estate and equity in subsidiaries dated March 10, 2023, interest at an annual rate of 8% simple interest and matures on December 10, 2023. For the nine months ended September 30, 2023, the Company recorded interest expense of $13,400. There was $13,400 accrued and unpaid interest as of September 30, 2023. C) A secured note payable of $200,000, secured by real estate and equity in subsidiaries dated May 16, 2023, interest at an annual rate of 8% simple interest and matures on December 10, 2023. For the nine months ended September 30, 2023, the Company recorded interest expense of $5,800. There was $5,800 accrued and unpaid interest as of September 30, 2023.
  (2) The balance consists of $3,795,000 of secured notes, and $453,200 unsecured notes payable.
  (3) Secured notes.

 

 
v3.23.3
RELATED PARTY TRANSACTIONS
 9 Months Ended
Sep. 30, 2023
Related Party Transactions [Abstract]  
RELATED PARTY TRANSACTIONS

NOTE 11 – RELATED PARTY TRANSACTIONS

 

Notes payable and accrued interest due to certain related parties are as follows:

 

   September 30,    December 31, 
   2023   2022 
   (unaudited)     
Short term notes  $125,000   $125,000 
Accrued interest   69,200    59,000 
Total short-term notes and accrued interest - Related parties  $194,200   $184,000 

 
v3.23.3
EQUITY TRANSACTIONS
 9 Months Ended
Sep. 30, 2023
Equity [Abstract]  
EQUITY TRANSACTIONS

NOTE 12 – EQUITY TRANSACTIONS

 

2023 Common Stock Transactions

 

During the nine months ended September 30, 2023, no new equity transactions have occurred.

 

2022 Common Stock Transactions

 

During the nine months ended September 30, 2022, no new equity transactions have occurred.

 

Non-controlling Interest

 

The non-controlling interest presented in our condensed consolidated financial statements reflects a 46% non-controlling equity interest in PWS and 49% non-controlling equity interest in PelleChar. Net losses attributable to non-controlling interest, as reported on our condensed consolidated statements of operations, represents the net loss of each entity attributable to the non-controlling equity interest. The non-controlling interest is reflected within stockholders’ equity on the condensed consolidated balance sheet.

 
v3.23.3
CUSTOMER CONCENTRATIONS
 9 Months Ended
Sep. 30, 2023
Risks and Uncertainties [Abstract]  
CUSTOMER CONCENTRATIONS

NOTE 13 – CUSTOMER CONCENTRATIONS

 

The Company had sales from operations to three customers, for both the nine months ended September 30, 2023, and 2022 that surpassed the 10% threshold of total revenue, respectively. In total, these customers represented approximately 38% and 36% of our total sales, respectively. The concentration of the Company’s business with a relatively small number of customers may expose us to a material adverse effect if one or more of these large customers were to experience financial difficulty or were to cease being customers for non-financial related issues.

 
v3.23.3
NET GAIN OR LOSS PER SHARE
 9 Months Ended
Sep. 30, 2023
Earnings Per Share [Abstract]  
NET GAIN OR LOSS PER SHARE

NOTE 14 – NET GAIN OR LOSS PER SHARE

 

Basic net gain or loss per share is computed by dividing net gain or loss attributable to common shareholders by the weighted average number of common shares outstanding. Diluted net gain or loss per share is computed by dividing net loss attributable to common shareholders by the weighted average number of common shares outstanding plus the number of common shares that would be issued assuming exercise or conversion of all potentially dilutive common shares. Potentially dilutive securities are excluded from the calculation when their effect would be anti-dilutive. For nine months ended September 30, 2023, all potentially dilutive securities have been excluded from the diluted share calculations because they were anti-dilutive as a result of the net losses incurred for the respective period, or were dilutive, but the exercise prices were above the stock price for the entire period, deeming them not to be converted, or exercised during the period. Accordingly, basic shares equal diluted shares for all periods presented.

 

 

Potentially dilutive securities were comprised of the following (unaudited):

 

   2023   2022 
  

For the Nine Months Ended

September 30,

 
   2023   2022 
Warrants   -    200,000 
Options   1,000,000    1,590,000 
Convertible notes payable, including accrued interest   3,443,000    3,170,700 
Potentially dilutive securities   4,443,000    4,960,700 

 
v3.23.3
DISCONTINUED SEM OPERATIONS
 9 Months Ended
Sep. 30, 2023
Discontinued Operations and Disposal Groups [Abstract]  
DISCONTINUED SEM OPERATIONS

NOTE 15 – DISCONTINUED SEM OPERATIONS

 

On January 1, 2023, the Company’s board of directors, by unanimous consent, adopted a resolution to discontinue operations of the Company’s wholly owned subsidiary, SEM, LLC. For the unaudited three and nine months ended September 30, 2023 and 2022, all operations from SEMS have been reported as discontinued operations.

 

The following table presents the assets and liabilities associated with the discontinued operations of SEM:

 

   September 30,   December 31, 
   2023   2022 
   (unaudited)     
ASSETS          
Property and equipment, net  $54,300    217,200 
Total Assets held for sale  $54,300   $217,200 
           
LIABILITIES          
Accounts payable  $29,800    40,900 
Accrued liabilities   10,000    10,000 
Current portion of long-term debt   14,200    34,600 
Total current liabilities   54,000    

85,500

 
           
Total liabilities held for sale  $54,000   $85,500 

 

 

Major classes of line items constituting pretax income on discontinued operations:

 

   2023   2022 
   For the Nine Months ended 
   September 30, 
   2023   2022 
         
Services revenue  $-   $120,400 
           
Services costs   -    (275,100)
General and administrative expenses   (14,700)   (56,800)
Salaries and related expenses   -    (38,400)
Other income (expense)   174,600    (3,200)
Total income (expense)   159,900    (373,500)
           
Operating income (loss)   159,900    (253,100)
Income tax benefit   -    - 
           
Total income (loss) from discontinued operations  $159,900   $(253,100)

 
v3.23.3
SEGMENT INFORMATION AND MAJOR CUSTOMERS
 9 Months Ended
Sep. 30, 2023
Segment Reporting [Abstract]  
SEGMENT INFORMATION AND MAJOR CUSTOMERS

NOTE 16 – SEGMENT INFORMATION AND MAJOR CUSTOMERS

 

The Company currently has identified two segments as follows:

 

  MV, PelleChar Environmental Solutions
  PWS Solid Waste

 

The composition of our current reportable segments is consistent with that used by our chief decision makers to evaluate performance and allocate resources. All of our operations are located in the U.S. The Company has not allocated corporate selling, general and administrative expenses, and stock-based compensation to the segments. All intercompany transactions have been eliminated.

 

 

Segment information for the (unaudited) three and nine months ended September 30, 2023 and 2022 is as follows:

 

   Solutions (1)   Waste   Corporate   Total 
Three Months ended September 30,                
                 
2023  Environmental   Solid         
   Solutions (1)   Waste   Corporate   Total 
                 
Revenue  $870,300   $-   $-   $870,300 
Depreciation and amortization (1)   5,600    -    -    5,600 
Interest expense   400    -    222,100    222,500 
Net income (loss) attributable to SEER common stockholders   66,800    (1,700)   (518,700)   (453,600)
Capital expenditures (cash and noncash)           -    -    -    - 
Total assets  $554,800   $-   $532,200   $1,087,000 

 

2022  Environmental   Solid         
   Solutions (1)   Waste   Corporate   Total 
                 
Revenue  $1,142,400   $-   $-   $1,142,400 
Depreciation and amortization (1)   16,600    -    1,000    17,600 
Interest expense   600    -    197,000    197,600 
Net income (loss) attributable to SEER common stockholders   (103,600)   (19,500)   (476,500)   (599,600)
Capital expenditures (cash and noncash)   -    -    -    - 
Total assets (1)  $1,732,500   $299,000   $312,400   $2,343,900 

 

   Solutions (1)   Waste   Corporate   Total 
Nine Months Ended September 30,                
                 
2023  Environmental   Solid         
   Solutions (1)   Waste   Corporate   Total 
                 
Revenue  $2,154,700   $-   $-   $2,154,700 
Depreciation and amortization (1)   16,800    -    -    16,800 
Interest expense   700    -    653,300    654,000 
Net income (loss) attributable to SEER common stockholders   (55,700)   6,800    (1,621,300)   (1,670,200)
Capital expenditures (cash and noncash)   -    -    -    - 
Total assets  $554,800   $-   $532,200   $1,087,000 
                     

 

2022  Environmental   Solid         
   Solutions (1)   Waste   Corporate   Total 
                 
Revenue  $2,952,100   $100,000   $-   $3,052,100 
Depreciation and amortization (1)   48,800    17,000    10,800    76,600 
Interest expense   3,100    4,100    568,000    575,200 
Net income (loss) attributable to SEER common stockholders   (22,800)   (61,300)   (1,425,200)   (1,509,300)
Capital expenditures (cash and noncash)   31,800    -    -    31,800 
Total assets (1)  $1,732,500   $299,000   $312,400   $2,343,900 

 

(1) Segment information excludes the results of SEM, which was discontinued January 1, 2023, except net income (loss), of which SEM is categorized as discontinued operations. (See Note 15)

  
v3.23.3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)
 9 Months Ended
Sep. 30, 2023
Accounting Policies [Abstract]  
Use of Estimates

Use of Estimates

 

The preparation of these consolidated financial statements in conformity with accounting principles generally accepted in the United States (U.S. GAAP) requires management to make a number of estimates and assumptions related to the reported amount of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the period. Significant items subject to such estimates and assumptions include the forecasted cash flows used in the impairment testing of goodwill and intangible assets. The carrying amount of intangible assets; valuation allowances and reserves for receivables; revenue recognition related to contracts accounted for under the percentage of completion method; and the Company’s ability to continue as a going concern. Actual results could differ from those estimates.

 
Reclassifications

Reclassifications

 

Certain amounts in the prior period financial statements have been reclassified to conform to the current period presentation. These reclassifications had no effect on reported consolidated net loss.

 
Revenue Recognition

Revenue Recognition

 

In May 2014, the FASB issued guidance on revenue from contracts with customers that superseded most current revenue recognition guidance, including industry-specific guidance. The underlying principle of the guidance is to recognize revenue to depict the transfer of goods or services to customers at an amount to which the company expects to be entitled in exchange for those goods or services. The new guidance requires an evaluation of revenue arrangements with customers following a five-step approach: (1) identify the contract with a customer; (2) identify the performance obligations in the contract; (3) determine the transaction price; (4) allocate the transaction price to the performance obligations; and (5) recognize revenue when (or as) the company satisfies each performance obligation. Revenues are recognized when control of the promised services are transferred to the customers in an amount that reflects the expected consideration in exchange for those services. A customer obtains control when it has the ability to direct the use of and obtain the benefits from the services. Other major provisions of the guidance include capitalization of certain contract costs, consideration of the time value of money in the transaction price and allowing estimates of variable consideration to be recognized before contingencies are resolved in certain circumstances. The guidance also requires enhanced disclosures regarding the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. (See Note 3)

 

 
Research and Development

Research and Development

 

Research and development (“R&D”) costs are charged to expense as incurred. R&D expenses consist primarily of salaries, project materials, contract labor and other costs associated with ongoing product development and enhancement efforts. R&D expenses were $0 for both the nine months ended September 30, 2023, and 2022.

 
Inventories

Inventories

 

Inventories are stated at the lower of cost or net realizable value on a first in, first out basis and includes the following amounts:

 

   September 30, 2023   December 31, 2022 
   (unaudited)     
Finished goods  $16,400   $9,400 
           
Inventory, net  $16,400   $9,400 

 
Income Taxes

Income Taxes

 

The Company accounts for income taxes pursuant to Accounting Standards Codification (“ASC”) 740, Income Taxes, which utilizes the asset and liability method of computing deferred income taxes. The objective of this method is to establish deferred tax assets and liabilities for any temporary differences between the financial reporting basis and the tax basis of the Company’s assets and liabilities at enacted tax rates expected to be in effect when such amounts are realized or settled.

 

ASC 740 also provides detailed guidance for the financial statement recognition, measurement and disclosure of uncertain tax positions recognized in the financial statements. Tax positions must meet a “more-likely-than-not” recognition threshold at the effective date to be recognized. During the nine months ended September 30, 2023, and 2022 the Company recognized no adjustments for uncertain tax positions.

 

The Company recognizes interest and penalties related to uncertain tax positions in income tax expense. No interest and penalties related to uncertain tax positions were recognized as of September 30, 2023, and 2022. The Company expects no material changes to unrecognized tax positions within the next twelve months.

 

The Company has filed federal and state tax returns through December 31, 2022. The tax periods for the years ending December 31, 2020, through 2022 are open to examination by federal and state authorities.
v3.23.3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)
 9 Months Ended
Sep. 30, 2023
Accounting Policies [Abstract]  
SCHEDULE OF INVENTORY

Inventories are stated at the lower of cost or net realizable value on a first in, first out basis and includes the following amounts:

 

   September 30, 2023   December 31, 2022 
   (unaudited)     
Finished goods  $16,400   $9,400 
           
Inventory, net  $16,400   $9,400 
v3.23.3
REVENUE (Tables)
 9 Months Ended
Sep. 30, 2023
Revenue:  
SCHEDULE OF DISAGGREGATION OF REVENUE

Disaggregation of Revenue (Unaudited)

 

   Environmental Solutions   Solid Waste   Total 
   Three months ended September 30, 2023 
   Environmental Solutions   Solid Waste   Total 
             
Sources of Revenue               
Product sales  $673,100   $-   $673,100 
Media sales   197,200    -    197,200 
Total Revenue  $870,300   $          -   $870,300 

 

   Environmental Solutions   Solid Waste   Total 
   Three months ended September 30, 2022 
   Environmental Solutions   Solid Waste   Total 
             
Sources of Revenue               
Product sales   904,300    -    904,300 
Media sales   238,100    -    238,100 
Management fees   -    -    - 
Total Revenue  $1,142,400   $        -   $1,142,400 

 

   Environmental Solutions   Solid Waste   Total 
   Nine months ended September 30, 2023 
   Environmental Solutions   Solid Waste   Total 
             
Sources of Revenue               
Product sales  $1,536,000   $-   $1,536,000 
Media sales   618,700    -    618,700 
Total Revenue  $2,154,700   $          -   $2,154,700 

 

   Environmental Solutions   Solid Waste   Total 
   Nine months ended September 30, 2022 
   Environmental Solutions   Solid Waste   Total 
Sources of Revenue            
Product sales  $2,310,700    -   $2,310,700 
Media sales   641,400    -    641,400 
Management fees   -    100,000    100,000 
Total Revenue  $2,952,100   $100,000   $3,052,100 
SCHEDULE OF CONTRACT BALANCES

The opening and closing balances of the Company’s accounts receivables and contract liabilities (current and non-current) are as follows:

 

           Contract Liabilities 
   Accounts Receivable,   Contract   Contract   Deferred Revenue   Deferred Revenue 
   net   Assets   Liabilities   (current)   (non-current) 
Balance as of September 30, 2023 (unaudited)  $390,800   $17,300   $656,800   $14,600   $- 
                          
Balance as of December 31, 2022   640,500    138,700    536,000    -    - 
                                         
Increase (decrease)  $(249,700)  $(121,400)  $120,800   $14,600   $- 
v3.23.3
PROPERTY AND EQUIPMENT (Tables)
 9 Months Ended
Sep. 30, 2023
Property, Plant and Equipment [Abstract]  
SCHEDULE OF PROPERTY PLANT AND EQUIPMENT

Property and equipment was comprised of the following:

 

   September 30, 2023   December 31, 2022 
   (unaudited)     
Field and shop equipment  $452,900   $395,000 
Vehicles   72,500    72,500 
Waste destruction equipment, placed in service   -    - 
Furniture and office equipment   293,400    333,800 
Leasehold improvements   36,200    36,200 
Building and improvements   -    - 
Land   -    - 
 Property and equipment, gross    855,000    837,500 
Less: accumulated depreciation and amortization   (831,100)   (798,900)
Property and equipment, net  $23,900   $38,600 
           
Classified as assets held for sale   54,300    217,200 
           
Assets fair value disclosure total  $78,200   $255,800 
v3.23.3
INTANGIBLE ASSETS (Tables)
 9 Months Ended
Sep. 30, 2023
Goodwill and Intangible Assets Disclosure [Abstract]  
SCHEDULE OF INTANGIBLE ASSETS

 

   September 30, 2023 
   Gross carrying amount   Accumulated amortization   Impairment   Net carrying value 
   (unaudited)   (unaudited)   (unaudited)   (unaudited) 
Goodwill  $-   $-   $-   $- 
Customer list   42,500    (42,500)   -    - 
Technology   684,000    (665,400)   -    18,600 
Trade name   54,900    (54,900)   -    - 
   $781,400   $(762,800)  $-   $18,600 

 

   December 31, 2022 
   Gross carrying amount   Accumulated amortization   Impairment   Net carrying value 
                 
Goodwill  $277,800   $-   $(277,800)  $- 
Customer list   42,500    (42,500)   -    - 
Technology   875,900    (813,300)   (41,900)   20,700 
Trade name   54,900    (54,900)   -    - 
   $1,251,100   $(910,700)  $(319,700)  $20,700 
v3.23.3
LEASES (Tables)
 9 Months Ended
Sep. 30, 2023
Lessee Disclosure [Abstract]  
SCHEDULE OF RIGHT-OF-USE-ASSETS AND RELATED LEASE LIABILITIES

Information related to the Company’s right-of-use assets and related lease liabilities were as follows (unaudited):

 

   For the Nine Months Ended September 30, 
   2023   2022 
         
Cash paid for operating lease liabilities  $123,500   $63,000 
Weighted-average remaining lease term   35 months    50 months 
Weighted-average discount rate   10%   10%
SCHEDULE OF MATURITIES OF LEASE LIABILITIES

Maturities of lease liabilities as of September 30, 2023 were as follows:

 

      
2023  $90,300 
2024   92,900 
2025   87,600 
2026   - 
2027   - 
Thereafter   - 
 Total operating lease   270,800 
Less imputed interest   (36,400)
Total lease liabilities   234,400 
v3.23.3
ACCRUED LIABILITIES (Tables)
 9 Months Ended
Sep. 30, 2023
Payables and Accruals [Abstract]  
SCHEDULE OF ACCRUED LIABILITIES

Accrued liabilities were comprised of the following:

 

   September 30,    December 31, 
   2023   2022 
   (unaudited)     
Accrued compensation and related taxes  $97,300   $81,900 
Accrued interest   3,182,700    2,562,300 
Accrued settlement/litigation claims   150,000    150,000 
Warranty and defect claims   65,300    57,000 
Other   68,700    102,600 
Total Accrued Liabilities  $3,564,000   $2,953,800 
v3.23.3
UNCOMPLETED CONTRACTS (Tables)
 9 Months Ended
Sep. 30, 2023
Contractors [Abstract]  
SCHEDULE OF UNCOMPLETED CONTRACTS

Costs, estimated earnings and billings on uncompleted contracts are as follows:

 

   September 30,   December 31, 
   2023   2022 
   (unaudited)     
Revenue recognized  $621,900   $440,200 
Less: billings to date   (604,600)   (301,500)
           
Contract assets   17,300    138,700 
           
Billings to date   1,807,900    2,849,400 
Revenue recognized   (1,151,100)   (2,313,400)
           
Contract liabilities  $656,800   $536,000 
v3.23.3
DEBT (Tables)
 9 Months Ended
Sep. 30, 2023
Debt Disclosure [Abstract]  
SCHEDULE OF DEBT

Debt as of September 30, 2023 (Unaudited), and December 31, 2022, was comprised of the following:

 

   Short term notes   Convertible notes, unsecured   Current portion of long-term debt and capital lease obligations   Long term debt   Total 
                     
Balance December 31, 2022  $3,518,000   $1,605,000   $504,300   $1,840,600   $7,467,900 
Increase in borrowing   901,100 (1)   -    -    -    901,100 
Principal reductions   (170,900)   -    (3,300)   -    (174,200)
Long term debt to current   -    -    3,400    (3,400)   - 
Amortization of debt discount   -    -    -    -    - 
Balance September 30, 2023  $ 4,248,200 (2)  $1,605,000   $504,400   $ 1,837,200 (3)  $8,194,800 

 

   (1) A) Secured note payable of $350,000, secured by certain real estate and equity, dated January 20, 2023, interest at an annual rate of 8.0% simple interest and matures on October 18, 2023. For the nine months ended September 30, 2023, the Company recorded interest expense of $19,400. There was $19,400 accrued and unpaid interest as of September 30, 2023. B) A secured note payable of $300,000, secured by real estate and equity in subsidiaries dated March 10, 2023, interest at an annual rate of 8% simple interest and matures on December 10, 2023. For the nine months ended September 30, 2023, the Company recorded interest expense of $13,400. There was $13,400 accrued and unpaid interest as of September 30, 2023. C) A secured note payable of $200,000, secured by real estate and equity in subsidiaries dated May 16, 2023, interest at an annual rate of 8% simple interest and matures on December 10, 2023. For the nine months ended September 30, 2023, the Company recorded interest expense of $5,800. There was $5,800 accrued and unpaid interest as of September 30, 2023.
  (2) The balance consists of $3,795,000 of secured notes, and $453,200 unsecured notes payable.
  (3) Secured notes.
v3.23.3
RELATED PARTY TRANSACTIONS (Tables)
 9 Months Ended
Sep. 30, 2023
Related Party Transactions [Abstract]  
SCHEDULE OF RELATED PARTIES NOTES PAYABLE AND ACCRUED INTEREST

Notes payable and accrued interest due to certain related parties are as follows:

 

   September 30,    December 31, 
   2023   2022 
   (unaudited)     
Short term notes  $125,000   $125,000 
Accrued interest   69,200    59,000 
Total short-term notes and accrued interest - Related parties  $194,200   $184,000 
v3.23.3
NET GAIN OR LOSS PER SHARE (Tables)
 9 Months Ended
Sep. 30, 2023
Earnings Per Share [Abstract]  
SCHEDULE OF POTENTIALLY DILUTIVE SECURITIES

Potentially dilutive securities were comprised of the following (unaudited):

 

   2023   2022 
  

For the Nine Months Ended

September 30,

 
   2023   2022 
Warrants   -    200,000 
Options   1,000,000    1,590,000 
Convertible notes payable, including accrued interest   3,443,000    3,170,700 
Potentially dilutive securities   4,443,000    4,960,700 
v3.23.3
DISCONTINUED SEM OPERATIONS (Tables)
 9 Months Ended
Sep. 30, 2023
Discontinued Operations and Disposal Groups [Abstract]  
SCHEDULE OF DISCONTINUED OPERATIONS

The following table presents the assets and liabilities associated with the discontinued operations of SEM:

 

   September 30,   December 31, 
   2023   2022 
   (unaudited)     
ASSETS          
Property and equipment, net  $54,300    217,200 
Total Assets held for sale  $54,300   $217,200 
           
LIABILITIES          
Accounts payable  $29,800    40,900 
Accrued liabilities   10,000    10,000 
Current portion of long-term debt   14,200    34,600 
Total current liabilities   54,000    

85,500

 
           
Total liabilities held for sale  $54,000   $85,500 

 

 

Major classes of line items constituting pretax income on discontinued operations:

 

   2023   2022 
   For the Nine Months ended 
   September 30, 
   2023   2022 
         
Services revenue  $-   $120,400 
           
Services costs   -    (275,100)
General and administrative expenses   (14,700)   (56,800)
Salaries and related expenses   -    (38,400)
Other income (expense)   174,600    (3,200)
Total income (expense)   159,900    (373,500)
           
Operating income (loss)   159,900    (253,100)
Income tax benefit   -    - 
           
Total income (loss) from discontinued operations  $159,900   $(253,100)
v3.23.3
SEGMENT INFORMATION AND MAJOR CUSTOMERS (Tables)
 9 Months Ended
Sep. 30, 2023
Segment Reporting [Abstract]  
SCHEDULE OF SEGMENT INFORMATION

Segment information for the (unaudited) three and nine months ended September 30, 2023 and 2022 is as follows:

 

   Solutions (1)   Waste   Corporate   Total 
Three Months ended September 30,                
                 
2023  Environmental   Solid         
   Solutions (1)   Waste   Corporate   Total 
                 
Revenue  $870,300   $-   $-   $870,300 
Depreciation and amortization (1)   5,600    -    -    5,600 
Interest expense   400    -    222,100    222,500 
Net income (loss) attributable to SEER common stockholders   66,800    (1,700)   (518,700)   (453,600)
Capital expenditures (cash and noncash)           -    -    -    - 
Total assets  $554,800   $-   $532,200   $1,087,000 

 

2022  Environmental   Solid         
   Solutions (1)   Waste   Corporate   Total 
                 
Revenue  $1,142,400   $-   $-   $1,142,400 
Depreciation and amortization (1)   16,600    -    1,000    17,600 
Interest expense   600    -    197,000    197,600 
Net income (loss) attributable to SEER common stockholders   (103,600)   (19,500)   (476,500)   (599,600)
Capital expenditures (cash and noncash)   -    -    -    - 
Total assets (1)  $1,732,500   $299,000   $312,400   $2,343,900 

 

   Solutions (1)   Waste   Corporate   Total 
Nine Months Ended September 30,                
                 
2023  Environmental   Solid         
   Solutions (1)   Waste   Corporate   Total 
                 
Revenue  $2,154,700   $-   $-   $2,154,700 
Depreciation and amortization (1)   16,800    -    -    16,800 
Interest expense   700    -    653,300    654,000 
Net income (loss) attributable to SEER common stockholders   (55,700)   6,800    (1,621,300)   (1,670,200)
Capital expenditures (cash and noncash)   -    -    -    - 
Total assets  $554,800   $-   $532,200   $1,087,000 
                     

 

2022  Environmental   Solid         
   Solutions (1)   Waste   Corporate   Total 
                 
Revenue  $2,952,100   $100,000   $-   $3,052,100 
Depreciation and amortization (1)   48,800    17,000    10,800    76,600 
Interest expense   3,100    4,100    568,000    575,200 
Net income (loss) attributable to SEER common stockholders   (22,800)   (61,300)   (1,425,200)   (1,509,300)
Capital expenditures (cash and noncash)   31,800    -    -    31,800 
Total assets (1)  $1,732,500   $299,000   $312,400   $2,343,900 

 

(1) Segment information excludes the results of SEM, which was discontinued January 1, 2023, except net income (loss), of which SEM is categorized as discontinued operations. (See Note 15)
v3.23.3
ORGANIZATION AND FINANCIAL CONDITION (Details Narrative) - USD ($)
 9 Months Ended
Sep. 30, 2023
Sep. 30, 2022
Dec. 31, 2022
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items]      
Retained earnings $ 33,700,000   $ 32,000,000.0
Net loss 1,700,000 $ 1,500,000  
Working capital deficit 11,000,000.0   $ 9,400,000
Short term and long term debt 900,000    
Net cash provided by (used in) financing activities $ 608,900 $ 847,500  
Paragon Waste Solutions, LLC [Member]      
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items]      
Noncontrolling interest, ownership percentage 54.00%    
PelleChar, LLC [Member]      
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items]      
Noncontrolling interest, ownership percentage 51.00%    
Benefuels, LLC [Member]      
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items]      
Noncontrolling interest, ownership percentage 85.00%    
v3.23.3
SCHEDULE OF INVENTORY (Details) - USD ($)
Sep. 30, 2023
Dec. 31, 2022
Accounting Policies [Abstract]    
Finished goods $ 16,400 $ 9,400
Inventory, net $ 16,400 $ 9,400 [1]
[1] Derived from audited information
v3.23.3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) - USD ($)
 9 Months Ended
Sep. 30, 2023
Sep. 30, 2022
Accounting Policies [Abstract]    
Research and development expense $ 0 $ 0
Uncertain tax positions 0 0
Interest and penalties related to uncertain tax positions $ 0 $ 0
v3.23.3
SCHEDULE OF DISAGGREGATION OF REVENUE (Details) - USD ($)
 3 Months Ended 9 Months Ended
Sep. 30, 2023
Sep. 30, 2022
Sep. 30, 2023
Sep. 30, 2022
Disaggregation of Revenue [Line Items]        
Total Revenue $ 870,300 $ 1,142,400 $ 2,154,700 $ 3,052,100
Product Sales [Member]        
Disaggregation of Revenue [Line Items]        
Total Revenue 673,100 904,300 1,536,000 2,310,700
Media Sales [Member]        
Disaggregation of Revenue [Line Items]        
Total Revenue 197,200 238,100 618,700 641,400
Management Fees [Member]        
Disaggregation of Revenue [Line Items]        
Total Revenue     100,000
Environmental Solutions [Member]        
Disaggregation of Revenue [Line Items]        
Total Revenue 870,300 1,142,400 2,154,700 2,952,100
Environmental Solutions [Member] | Product Sales [Member]        
Disaggregation of Revenue [Line Items]        
Total Revenue 673,100 904,300 1,536,000 2,310,700
Environmental Solutions [Member] | Media Sales [Member]        
Disaggregation of Revenue [Line Items]        
Total Revenue 197,200 238,100 618,700 641,400
Environmental Solutions [Member] | Management Fees [Member]        
Disaggregation of Revenue [Line Items]        
Total Revenue    
Solid Waste [Member]        
Disaggregation of Revenue [Line Items]        
Total Revenue 100,000
Solid Waste [Member] | Product Sales [Member]        
Disaggregation of Revenue [Line Items]        
Total Revenue
Solid Waste [Member] | Media Sales [Member]        
Disaggregation of Revenue [Line Items]        
Total Revenue
Solid Waste [Member] | Management Fees [Member]        
Disaggregation of Revenue [Line Items]        
Total Revenue     $ 100,000
v3.23.3
SCHEDULE OF CONTRACT BALANCES (Details) - USD ($)
 9 Months Ended
Sep. 30, 2023
Sep. 30, 2022
Dec. 31, 2022
Revenue:      
Accounts Receivable, net $ 390,800   $ 640,500
Contract Assets 17,300   138,700 [1]
Contract Liabilities 656,800   536,000
Deferred Revenue (current) 14,600  
Deferred Revenue (noncurrent)  
Increase (decrease) in Accounts Receivable, net (249,700)    
Increase (decrease) in Contract Assets (121,400) $ 72,800  
Increase (decrease) in Contract Liabilities 120,800 $ (5,500)  
Deferred Revenue (current), Increase (decrease) 14,600    
Deferred Revenue (non-current), Increase (decrease)    
[1] Derived from audited information
v3.23.3
REVENUE (Details Narrative)
$ in Millions
Sep. 30, 2023
USD ($)
Revenue remaining performance obligations $ 1.0
Next Twelve Months [Member]  
Revenue remaining performance obligations, percentage 85.00%
v3.23.3
SCHEDULE OF PROPERTY PLANT AND EQUIPMENT (Details) - USD ($)
Sep. 30, 2023
Dec. 31, 2022
Property, Plant and Equipment [Line Items]    
 Property and equipment, gross $ 855,000 $ 837,500
Less: accumulated depreciation and amortization (831,100) (798,900)
Property and equipment, net 23,900 38,600 [1]
Classified as assets held for sale 54,300 217,200 [1]
Assets fair value disclosure total 78,200 255,800
Field and Shop Equipment [Member]    
Property, Plant and Equipment [Line Items]    
 Property and equipment, gross 452,900 395,000
Vehicles [Member]    
Property, Plant and Equipment [Line Items]    
 Property and equipment, gross 72,500 72,500
Waste Destruction Equipment [Member]    
Property, Plant and Equipment [Line Items]    
 Property and equipment, gross
Furniture and Office Equipment [Member]    
Property, Plant and Equipment [Line Items]    
 Property and equipment, gross 293,400 333,800
Leasehold Improvements [Member]    
Property, Plant and Equipment [Line Items]    
 Property and equipment, gross 36,200 36,200
Building Improvements [Member]    
Property, Plant and Equipment [Line Items]    
 Property and equipment, gross
Land [Member]    
Property, Plant and Equipment [Line Items]    
 Property and equipment, gross
[1] Derived from audited information
v3.23.3
PROPERTY AND EQUIPMENT (Details Narrative) - USD ($)
 3 Months Ended 9 Months Ended
Sep. 30, 2023
Sep. 30, 2022
Sep. 30, 2023
Sep. 30, 2022
Impaired Assets to be Disposed of by Method Other than Sale [Line Items]        
Depreciation $ 4,900 $ 13,100 $ 14,700 $ 61,100
Cost of Sales [Member]        
Impaired Assets to be Disposed of by Method Other than Sale [Line Items]        
Depreciation 4,900 12,100 14,700 50,300
Selling, General and Administrative Expenses [Member]        
Impaired Assets to be Disposed of by Method Other than Sale [Line Items]        
Depreciation $ 0 $ 1,000 $ 0 $ 10,800
v3.23.3
SCHEDULE OF INTANGIBLE ASSETS (Details) - USD ($)
 9 Months Ended 12 Months Ended
Sep. 30, 2023
Dec. 31, 2022
Finite-Lived Intangible Assets [Line Items]    
Gross carrying amount $ 781,400 $ 1,251,100
Accumulated amortization (762,800) (910,700)
Impairment (319,700)
Net carrying value 18,600 20,700
Goodwill [Member]    
Finite-Lived Intangible Assets [Line Items]    
Gross carrying amount 277,800
Accumulated amortization
Impairment (277,800)
Net carrying value
Customer Lists [Member]    
Finite-Lived Intangible Assets [Line Items]    
Gross carrying amount 42,500 42,500
Accumulated amortization (42,500) (42,500)
Impairment
Net carrying value
Technology-Based Intangible Assets [Member]    
Finite-Lived Intangible Assets [Line Items]    
Gross carrying amount 684,000 875,900
Accumulated amortization (665,400) (813,300)
Impairment (41,900)
Net carrying value 18,600 20,700
Trade Names [Member]    
Finite-Lived Intangible Assets [Line Items]    
Gross carrying amount 54,900 54,900
Accumulated amortization (54,900) (54,900)
Impairment
Net carrying value
v3.23.3
INTANGIBLE ASSETS (Details Narrative) - USD ($)
 3 Months Ended 9 Months Ended
Sep. 30, 2023
Sep. 30, 2022
Sep. 30, 2023
Sep. 30, 2022
Selling, General and Administrative Expenses [Member]        
Finite-Lived Intangible Assets [Line Items]        
Amortization expense $ 700 $ 4,400 $ 2,100 $ 15,500
Minimum [Member]        
Finite-Lived Intangible Assets [Line Items]        
Estimated useful lives of the intangible assets 7 years   7 years  
Maximum [Member]        
Finite-Lived Intangible Assets [Line Items]        
Estimated useful lives of the intangible assets 20 years   20 years  
v3.23.3
SCHEDULE OF RIGHT-OF-USE-ASSETS AND RELATED LEASE LIABILITIES (Details) - USD ($)
 9 Months Ended
Sep. 30, 2023
Sep. 30, 2022
Lessee Disclosure [Abstract]    
Cash paid for operating lease liabilities $ 123,500 $ 63,000
Weighted-average remaining lease term 35 months 50 months
Weighted-average discount rate 10.00% 10.00%
v3.23.3
SCHEDULE OF MATURITIES OF LEASE LIABILITIES (Details)
Sep. 30, 2023
USD ($)
Lessee Disclosure [Abstract]  
2023 $ 90,300
2024 92,900
2025 87,600
2026
2027
Thereafter
 Total operating lease 270,800
Less imputed interest (36,400)
Total lease liabilities $ 234,400
v3.23.3
LEASES (Details Narrative) - USD ($)
 9 Months Ended
Sep. 30, 2023
Dec. 31, 2022
 [1]
Lease renewal term 1 year  
Operating lease right of use asset $ 206,500 $ 249,700
Operating lease liability 234,400  
Operating lease costs $ 62,700  
Minimum [Member]    
Lease term 1 year  
Maximum [Member]    
Lease term 8 years  
[1] Derived from audited information
v3.23.3
SCHEDULE OF ACCRUED LIABILITIES (Details) - USD ($)
Sep. 30, 2023
Dec. 31, 2022
Payables and Accruals [Abstract]    
Accrued compensation and related taxes $ 97,300 $ 81,900
Accrued interest 3,182,700 2,562,300
Accrued settlement/litigation claims 150,000 150,000
Warranty and defect claims 65,300 57,000
Other 68,700 102,600
Total Accrued Liabilities $ 3,564,000 $ 2,953,800 [1]
[1] Derived from audited information
v3.23.3
SCHEDULE OF UNCOMPLETED CONTRACTS (Details) - USD ($)
Sep. 30, 2023
Dec. 31, 2022
Contractors [Abstract]    
Revenue recognized $ 621,900 $ 440,200
Less: billings to date (604,600) (301,500)
Contract assets 17,300 138,700
Billings to date 1,807,900 2,849,400
Revenue recognized (1,151,100) (2,313,400)
Contract liabilities $ 656,800 $ 536,000 [1]
[1] Derived from audited information
v3.23.3
INVESTMENTS (Details Narrative) - USD ($)
$ in Millions
 9 Months Ended
Sep. 30, 2023
Jun. 30, 2023
Jul. 20, 2022
Paragon Southwest Medical Waste [Member]      
Equity percentage     30.00%
Amlon Holdings [Member]      
Equity percentage   2.00%  
Paragon Waste Solutions, LLC [Member]      
Payment for funding of subsidiary $ 6.4    
v3.23.3
SCHEDULE OF DEBT (Details)
 9 Months Ended
Sep. 30, 2023
USD ($)
Short-Term Debt [Line Items]  
Debt, beginning balance $ 7,467,900
Increase in borrowing 901,100
Principal reductions (174,200)
Long term debt to current
Amortization of debt discount
Debt, ending balance 8,194,800
Short Term Notes [Member]  
Short-Term Debt [Line Items]  
Debt, beginning balance 3,518,000
Increase in borrowing 901,100 [1]
Principal reductions (170,900)
Long term debt to current
Amortization of debt discount
Debt, ending balance 4,248,200 [2]
Convertible Notes, Unsecured [Member]  
Short-Term Debt [Line Items]  
Debt, beginning balance 1,605,000
Increase in borrowing
Principal reductions
Long term debt to current
Amortization of debt discount
Debt, ending balance 1,605,000
Current Portion Of Long Term Debt [Member]  
Short-Term Debt [Line Items]  
Debt, beginning balance 504,300
Increase in borrowing
Principal reductions (3,300)
Long term debt to current 3,400
Amortization of debt discount
Debt, ending balance 504,400
Long Term Debts [Member]  
Short-Term Debt [Line Items]  
Debt, beginning balance 1,840,600
Increase in borrowing
Principal reductions
Long term debt to current (3,400)
Amortization of debt discount
Debt, ending balance $ 1,837,200 [3]
[1] A) Secured note payable of $350,000, secured by certain real estate and equity, dated January 20, 2023, interest at an annual rate of 8.0% simple interest and matures on October 18, 2023. For the nine months ended September 30, 2023, the Company recorded interest expense of $19,400. There was $19,400 accrued and unpaid interest as of September 30, 2023. B) A secured note payable of $300,000, secured by real estate and equity in subsidiaries dated March 10, 2023, interest at an annual rate of 8% simple interest and matures on December 10, 2023. For the nine months ended September 30, 2023, the Company recorded interest expense of $13,400. There was $13,400 accrued and unpaid interest as of September 30, 2023. C) A secured note payable of $200,000, secured by real estate and equity in subsidiaries dated May 16, 2023, interest at an annual rate of 8% simple interest and matures on December 10, 2023. For the nine months ended September 30, 2023, the Company recorded interest expense of $5,800. There was $5,800 accrued and unpaid interest as of September 30, 2023.
[2] The balance consists of $3,795,000 of secured notes, and $453,200 unsecured notes payable.
[3] Secured notes.
v3.23.3
SCHEDULE OF DEBT (Details) (Parenthetical) - USD ($)
 3 Months Ended 9 Months Ended
May 16, 2023
Mar. 10, 2023
Jan. 20, 2023
Sep. 30, 2023
Sep. 30, 2022
Sep. 30, 2023
Sep. 30, 2022
Short-Term Debt [Line Items]              
Interest expense       $ 222,400 $ 197,600 $ 654,000 $ 575,200
Secured Note Payable [Member]              
Short-Term Debt [Line Items]              
Debt principal amount     $ 350,000        
Note payable, interest     8.00%        
Note payable, maturity date     Oct. 18, 2023        
Interest expense           19,400  
Accrued and upaid interest           19,400  
Secured Note Payable [Member] | Subsidiaries [Member]              
Short-Term Debt [Line Items]              
Debt principal amount   $ 300,000          
Note payable, interest   8.00%          
Note payable, maturity date   Dec. 10, 2023          
Interest expense           13,400  
Accrued and upaid interest           13,400  
Secured Note Payable One [Member] | Subsidiaries [Member]              
Short-Term Debt [Line Items]              
Debt principal amount $ 200,000            
Note payable, interest 8.00%            
Note payable, maturity date Dec. 10, 2023            
Interest expense           5,800  
Accrued and upaid interest           5,800  
Secured Notes [Member]              
Short-Term Debt [Line Items]              
Notes Payable       3,795,000   3,795,000  
Unsecured Notes Payable [Member]              
Short-Term Debt [Line Items]              
Notes Payable       $ 453,200   $ 453,200  
v3.23.3
SCHEDULE OF RELATED PARTIES NOTES PAYABLE AND ACCRUED INTEREST (Details) - Related Party [Member] - USD ($)
Sep. 30, 2023
Dec. 31, 2022
Related Party Transaction [Line Items]    
Short term notes $ 125,000 $ 125,000
Accrued interest 69,200 59,000
Total short-term notes and accrued interest - Related parties $ 194,200 $ 184,000
v3.23.3
EQUITY TRANSACTIONS (Details Narrative)
 9 Months Ended
Sep. 30, 2023
Non-controlling interest, description The non-controlling interest presented in our condensed consolidated financial statements reflects a 46% non-controlling equity interest in PWS and 49% non-controlling equity interest in PelleChar
Paragon Waste Solutions, LLC [Member]  
Percentage of non controlling equity interest 46.00%
PelleChar, LLC [Member]  
Percentage of non controlling equity interest 49.00%
v3.23.3
CUSTOMER CONCENTRATIONS (Details Narrative)
 9 Months Ended
Sep. 30, 2023
Sep. 30, 2022
Revenue Benchmark [Member] | Four and Three Customers [Member] | Customer Concentration Risk [Member]    
Concentration Risk [Line Items]    
Concentration risk percentage 38.00% 36.00%
v3.23.3
SCHEDULE OF POTENTIALLY DILUTIVE SECURITIES (Details) - shares
 9 Months Ended
Sep. 30, 2023
Sep. 30, 2022
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]    
Potentially dilutive securities 4,443,000 4,960,700
Warrant [Member]    
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]    
Potentially dilutive securities 200,000
Options [Member]    
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]    
Potentially dilutive securities 1,000,000 1,590,000
Convertible Notes Payable, Including Accrued Interest [Member]    
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]    
Potentially dilutive securities 3,443,000 3,170,700
v3.23.3
SCHEDULE OF DISCONTINUED OPERATIONS (Details) - USD ($)
 9 Months Ended
Sep. 30, 2023
Sep. 30, 2022
Dec. 31, 2022
ASSETS      
Property and equipment, net $ 54,300   $ 217,200
Total Assets held for sale 54,300   217,200
LIABILITIES      
Accounts payable 29,800   40,900
Accrued liabilities 10,000   10,000
Current portion of long-term debt 14,200   34,600
Total current liabilities 54,000   85,500
Total liabilities held for sale 54,000   $ 85,500 [1]
Services revenue $ 120,400  
Services costs (275,100)  
General and administrative expenses (14,700) (56,800)  
Salaries and related expenses (38,400)  
Other income (expense) 174,600 (3,200)  
Total income (expense) 159,900 (373,500)  
Operating income (loss) 159,900 (253,100)  
Income tax benefit  
Total income (loss) from discontinued operations $ 159,900 $ (253,100)  
[1] Derived from audited information
v3.23.3
SCHEDULE OF SEGMENT INFORMATION (Details) - USD ($)
 3 Months Ended 9 Months Ended
Sep. 30, 2023
Sep. 30, 2022
Sep. 30, 2023
Sep. 30, 2022
Dec. 31, 2022
 [1]
Segment Reporting Information [Line Items]          
Revenue $ 870,300 $ 1,142,400 $ 2,154,700 $ 3,052,100  
Interest expense 222,400 197,600 654,000 575,200  
Total assets 1,087,000   1,087,000   $ 1,644,400
Operating Segments [Member]          
Segment Reporting Information [Line Items]          
Revenue 870,300 1,142,400 2,154,700 3,052,100  
Depreciation and amortization (1) 5,600 [2] 17,600 [2] 16,800 [2] 76,600  
Interest expense 222,500 197,600 654,000 575,200  
Net income (loss) attributable to SEER common stockholders (453,600) (599,600) (1,670,200) (1,509,300)  
Capital expenditures (cash and noncash) 31,800  
Total assets 1,087,000 2,343,900 [2] 1,087,000 2,343,900 [2]  
Environmental Solutions [Member] | Operating Segments [Member]          
Segment Reporting Information [Line Items]          
Revenue [2] 870,300 1,142,400 2,154,700 2,952,100  
Depreciation and amortization (1) [2] 5,600 16,600 16,800 48,800  
Interest expense [2] 400 600 700 3,100  
Net income (loss) attributable to SEER common stockholders [2] 66,800 (103,600) (55,700) (22,800)  
Capital expenditures (cash and noncash) [2] 31,800  
Total assets 554,800 1,732,500 [2] 554,800 1,732,500 [2]  
Solid Waste [Member] | Operating Segments [Member]          
Segment Reporting Information [Line Items]          
Revenue 100,000  
Depreciation and amortization (1) [2] [2] [2] 17,000  
Interest expense 4,100  
Net income (loss) attributable to SEER common stockholders (1,700) (19,500) 6,800 (61,300)  
Capital expenditures (cash and noncash)  
Total assets 299,000 [2] 299,000 [2]  
Corporate Segment [Member] | Operating Segments [Member]          
Segment Reporting Information [Line Items]          
Revenue  
Depreciation and amortization (1) [2] 1,000 [2] [2] 10,800  
Interest expense 222,100 197,000 653,300 568,000  
Net income (loss) attributable to SEER common stockholders (518,700) (476,500) (1,621,300) (1,425,200)  
Capital expenditures (cash and noncash)  
Total assets $ 532,200 $ 312,400 [2] $ 532,200 $ 312,400 [2]  
[1] Derived from audited information
[2] Segment information excludes the results of SEM, which was discontinued January 1, 2023, except net income (loss), of which SEM is categorized as discontinued operations. (See Note 15)
Strategic Environmental ... (QB) (USOTC:SENR)
Historical Stock Chart
From Oct 2024 to Nov 2024 Click Here for more Strategic Environmental ... (QB) Charts.
Strategic Environmental ... (QB) (USOTC:SENR)
Historical Stock Chart
From Nov 2023 to Nov 2024 Click Here for more Strategic Environmental ... (QB) Charts.