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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, 2024

 

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 15, 2024, 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, 2024 (unaudited) and December 31, 2023 3
     
  Condensed Consolidated Statements of Operations for the Three and Nine Months Ended September 30, 2024, and 2023 (unaudited) 4
     
  Condensed Consolidated Statement of Changes in Stockholders’ Deficit as of September 30, 2024, and 2023 (unaudited) 5
     
  Condensed Consolidated Statements of Cash Flows for the Nine Months Ended September 30, 2024, and 2023 (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 24
     
Item 4. Controls and Procedures 24
     
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 26
     
Item 4. Mine Safety Disclosures 28
     
Item 5. Other Information 28
     
Item 6. Exhibits 28
     
SIGNATURES 29

 

2
 

 

Part I. FINANCIAL INFORMATION

 

Item 1. Financial Statements

 

STRATEGIC ENVIRONMENTAL & ENERGY RESOURCES, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

 

   September 30,   December 31,  
   2024   2023 
   (unaudited)   * 
ASSETS          
Current Assets          
Cash and cash equivalents  $42,200   $57,900 
Accounts receivable, net of allowance for credit losses of $24,200 and $24,200, respectively   468,100    340,800 
Inventory   2,100    16,800 
Contract assets   34,300    17,000 
Prepaid expenses and other current assets   390,100    81,400 
Assets held for sale   -    54,300 
Total Current Assets   936,800    568,200 
           
Property and equipment, net   46,900    33,600 
Intangible Assets, net   15,400    17,900 
Right of use assets   143,200    191,300 
Other assets   40,000    40,000 
           
TOTAL ASSETS  $1,182,300   $851,000 
           
LIABILITIES AND STOCKHOLDERS’ DEFICIT          
           
Current Liabilities          
Accounts payable  $1,183,700   $816,600 
Accrued liabilities   4,490,300    3,759,300 
Contract liabilities   685,800    829,800 
Deferred revenue   286,700    43,300 
Customer deposits   -    26,800 
Short term notes   4,951,800    4,243,100 
Short term notes and accrued interest - related party   213,000    201,400 
Convertible notes   1,605,000    1,605,000 
Current portion of long-term debt and finance lease obligations   507,600    509,800 
Current portion of lease liabilities   72,500    72,500 
Liabilities held for sale   34,500    42,900 
Total Current Liabilities   14,030,900    12,150,500 
           
Lease liabilities net of current portion   91,900    145,100 
Long term debt   1,839,000    1,843,900 
Total Liabilities   15,961,800    14,139,500 
           
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 June 30, 2024 and December 31, 2023   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   (35,865,800)   (34,377,900)
Total stockholders’ deficit   (12,826,900)   (11,339,000)
Non-controlling interest   (1,952,600)   (1,949,500)
Total Deficit   (14,779,500)   (13,288,500)
TOTAL LIABILITIES AND STOCKHOLDERS’ DEFICIT  $1,182,300   $851,000 

 

* These numbers are derived from the audited financial statements for the year ended December 31, 2023.
 ** Includes 2,785,000 shares issuable at September 30, 2024 and December 31, 2023, 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)

 

   2024   2023   2024   2023 
   For the Three Months Ended
September 30,		   For the Nine Months Ended
September 30,		 
   2024   2023   2024   2023 
Revenue:                    
Products  $888,800   $870,300   $2,640,500   $2,154,700 
Total revenue   888,800    870,300    2,640,500    2,154,700 
                     
Operating expenses:                    
Products costs   613,400    594,500    1,893,800    1,578,400 
General and administrative expenses   178,500    194,400    716,700    852,500 
Salaries and related expenses   321,800    312,900    989,100    921,500 
Total operating expenses   1,113,700    1,101,800    3,599,600    3,352,400 
                     
Loss from operations   (224,900)   (231,500)   (959,100)   (1,197,700)
                     
Other income (expense):                    
Interest expense   (237,000)   (222,400)   (685,900)   (654,000)
Other income (expense)   -    -    150,300    20,100 
Total non-operating expense, net   (237,000)   (222,400)   (535,600)   (633,900)
                     
Loss from continuing operations   (461,900)   (453,900)   (1,494,700)   (1,831,600)
                     
Income (loss) from discontinued operations, net of tax   -    (400)   3,700    159,900 
                     
Net Loss   (461,900)   (454,300)   (1,491,000)   (1,671,700)
                     
Less: Net income (loss) attributable to non-controlling interest   (800)   (2,200)   (3,100)   (1,500)
                     
Net Loss attributable to SEER common stockholders  $(461,100)  $(452,100)  $(1,487,900)  $(1,670,200)
                     
Basic earnings per share attributable to SEER common stockholders                    
Loss from continuing operations, per share  $(0.01)  $(0.01)  $(0.02)  $(0.03)
Income from discontinued operations, per share   0.00    (0.00)   0.00    0.00 
Net Loss per share, basic  $(0.01)  $(0.01)  $(0.02)  $(0.03)
                     
Fully diluted earnings per share attributable to SEER common stockholders                    
Loss from continuing operations, per share   (0.01)   (0.01)   (0.02)   (0.03)
Income from discontinued operations, per share   0.00    (0.00)   0.00    0.00 
Net Loss per share, basic  $(0.01)  $(0.01)  $(0.02)  $(0.03)
                     
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)

 

                   Additional   Common   Stock           Total 
   Preferred Stock   Common Stock   Paid-in   Stock   Subscription   Accumulated   Non-controller   Stockholders’ 
   Shares   Amount   Shares   Amount   Capital   Subscribed   Receivable   Deficit   Interest   Deficit 
                                         
Balances at December 31, 2023   -    -    65,088,600    65,100    22,973,800    25,000    (25,000)   (34,377,900)           (1,949,500)        (13,288,500)
                                                   
Net income (loss)   -    -    -    -    -    -    -    (352,200)   (900)   (353,100)
                                                   
Balances at March 31, 2024   -    -    65,088,600    65,100    22,973,800    25,000    (25,000)   (34,730,100)   (1,950,400)   (13,641,600)
                                                   
Net income (loss)   -    -    -    -    -    -    -    (674,600)   (1,400)   (676,000)
                                                   
Balances at June 30, 2024   -    -    65,088,600    65,100    22,973,800    25,000    (25,000)   (35,404,700)   (1,951,800)   (14,317,600)
                                                   
Net income (loss)   -    -    -    -    -    -    -    (461,100)   (800)   (461,900)
                                                   
Balances at September 30, 2024   -   $-    65,088,600   $65,100   $22,973,800   $25,000   $(25,000)  $(35,865,800)  $(1,952,600)  $(14,779,500)

 

                   Additional   Common   Stock           Total 
   Preferred Stock   Common Stock   Paid-in   Stock   Subscription   Accumulated   Non-controller   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)

 

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)

 

-  2024   2023 
   For the Nine Months Ended June 30, 
  2024   2023 
Cash flows from operating activities:        
Loss from continuing operations  $(1,494,700)  $(1,831,600)
Income (loss) from discontinued operations   3,700    159,900 
Net Loss   (1,491,000)   (1,671,700)
           
Adjustments to reconcile net loss to net cash provided by operating activities:          
Depreciation and amortization   11,400    16,800 
Gain on sale of fixed assets   500    - 
Gain on assets held for sale   (5,300)   (175,600)
Bad debt   -    (10,900)
Changes in operating assets and liabilities:          
Accounts receivable   (127,300)   260,600 
Contract assets   (17,300)   121,400 
Inventory   14,700    (7,000)
Prepaid expenses and other assets   (223,200)   93,200 
Accounts payable, accrued liabilities, and customer deposits   1,090,200    350,300 
Contract liabilities   (144,000)   120,800 
Deferred revenue   243,400    14,600 
Assets and liabilities held for sale   (8,400)   (31,500)
           
Net cash used in operating activities   (656,300)   (919,000)
Cash flows from investing activities:          
Purchase of property and equipment   (22,700)   - 
Proceeds from the sale of fixed assets held for sale   59,500    338,500 
Net cash (used) provided by investing activities   36,800    338,500 
Cash flows from financing activities:          
Payments of notes and capital lease obligations   (201,200)   (241,100)
Proceeds from short-term and long-term debt   805,000    850,000 
           
Net cash provided by financing activities   603,800    608,900 
Net increase (decrease) in cash   (15,700)   28,400 
Cash at the beginning of period   57,900    21,500 
Cash at the end of period  $42,200   $49,900 
           
Supplemental disclosures of cash flow information:          
Cash paid for interest  $16,700   $23,500 
Financing of prepaid insurance premiums  $37,400   $51,100 

 

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 are: 1) MV, LLC (d/b/a MV Technologies) (“MV”), which 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.; and 2) Strategic Environmental Materials, LLC, (“SEM”), a materials technology company previously focused on the development of cost-effective chemical absorbents. The media production operations were discontinued during the year ended December 31, 2023. (See Note 15)

 

The two majority-owned subsidiaries are 1) Paragon Waste Solutions, LLC (“PWS”), and 2) PelleChar, LLC (“PelleChar”). PWS is currently owned 54% by SEER, and PelleChar is owned 51% by SEER.

 

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. (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 an accumulated deficit of approximately $35.9 million as of September 30, 2024, and for the nine months ended September 30, 2024, we incurred a net loss from continuing operations of approximately $1.5 million. As of September 30, 2024, our current liabilities exceeded our current assets by approximately $13.1 million. 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, 2024, 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, 2024, the Company raised approximately $0.8 million from the issuance of short-term and long-term debt, offset by payments of principal on short term notes of $0.2 million, 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. Critical to achieving profitability will be the ability to license and or sell, permit and operate through the Company’s joint ventures. 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 16, 2024, for the year ended December 31, 2023.

 

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, 2024, and 2023.

 

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,
2024		   December 31,
2023		 
   (unaudited)   * 
Finished goods  $2,100   $16,800 
           
Total inventory  $2,100   $16,800 

 

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, 2024, and 2023 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, 2024, and 2023. 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, 2023. The tax periods for the years ending December 31, 2021, through 2023 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.

 

9
 

 

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)

 

   Three months ended
September 30, 2024		 
   Environmental Solutions 
     
Sources of Revenue     
Product sales  $720,000 
Media sales   168,800 
Total Revenue  $888,800 

 

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

 

   Nine months ended
September 30, 2024		 
   Environmental Solutions 
     
Sources of Revenue     
Product sales  $2,007,800 
Media sales   632,700 
Total Revenue  $2,640,500 

 

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

 

10
 

 

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 
             Deferred    Deferred  
    Accounts Receivable, net    Contract Assets    Contract Liabilities     Revenue
(current)		    Revenue
(non-current)		 
Balance as of September 30, 2024 (unaudited)  $468,100   $34,300   $685,800   $286,700   $- 
Balance as of December 31, 2023*   340,800    17,000    829,800    43,300    - 
Increase (decrease)  $127,300   $17,300   $(144,000)  $243,400   $- 

 

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, 2024, 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, 2024   December 31, 2023 
   (unaudited)   * 
Field and shop equipment  $397,600   $398,100 
Vehicles   72,500    72,500 
Furniture and office equipment   274,600    255,400 
Leasehold improvements   36,200    36,200 
          
Property and equipment, gross   780,900    762,200 
Less: accumulated depreciation and amortization   (734,000)   (728,600)
Property and equipment, net  $46,900   $33,600 

 

Depreciation expense for the three months ended September 30, 2024, and 2023 was $2,900 and $4,900, respectively. For the three months ended September 30, 2024, and 2023, depreciation expense included in cost of goods sold was $1,900 and $4,900, respectively. For the three months ended September 30, 2024, and 2023, depreciation expense included in selling, general and administrative expenses was $1,000 and $0, respectively.

 

Depreciation expense for the nine months ended September 30, 2024, and 2023 was $8,900 and $14,700, respectively. For the nine months ended September 30, 2024, and 2023, depreciation expense included in cost of goods sold was $5,900 and $14,700, respectively. For the nine months ended September 30, 2024, and 2023, depreciation expense included in selling, general and administrative expenses was $3,000 and $0, respectively.

 

11
 

 

NOTE 5 – INTANGIBLE ASSETS

 

   September 30, 2024 (unaudited) 
   Gross carrying amount   Accumulated amortization   Net carrying value 
             
Customer list  $42,500   $(42,500)  $- 
Technology   684,000    (668,600)   15,400 
Trade name   54,900    (54,900)   - 
   $781,400   $(766,000)  $15,400 

 

   December 31, 2023* 
   Gross carrying amount   Accumulated amortization   Net carrying value 
             
Customer list  $42,500   $(42,500)  $- 
Technology   684,000    (666,100)   17,900 
Trade name   54,900    (54,900)   - 
   $781,400   $(763,500)  $17,900 

 

The estimated useful lives of the intangible assets range from seven to twenty years. Amortization expense was $900 and $700 for the three months ended September 30, 2024, and 2023, respectively. Amortization expense was $2,500 and $2,100 for the nine months ended September 30, 2024, and 2023, 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, 2024, 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, 2024, Consolidated Balance Sheets. As of September 30, 2024, total right-of-use assets and operating lease liabilities were approximately $143,200 and $164,400, respectively. All operating lease expense is recognized on a straight-line basis over the lease term. In the nine months ended September 30, 2024, 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):

 

   Nine months ended September 30, 
   2024   2023 
         
Cash paid for operating lease liabilities  $97,000   $123,500 
Weighted-average remaining lease term   23 months    35 months 
Weighted-average discount rate   10%   10%

 

12
 

 

Maturities of lease liabilities as of September 30, 2024 were as follows:

 

      
2025  $23,000 
2026   93,600 
2027   64,000 
2028   - 
2029   - 
Thereafter   - 
Total operating lease   180,600 
Less imputed interest   (16,200)
Total lease liabilities   164,400 

 

NOTE 7 – ACCRUED LIABILITIES

 

Accrued liabilities were comprised of the following:

 

  September 30,   December 31, 
   2024   2023 
  (unaudited)   * 
Accrued compensation and related taxes  $114,000   $89,000 
Accrued interest   4,054,200    3,396,700 
Accrued settlement/litigation claims   150,000    150,000 
Warranty and defect claims   56,300    51,000 
Other   115,800    72,600 
Total Accrued Liabilities  $4,490,300   $3,759,300 

 

NOTE 8 – UNCOMPLETED CONTRACTS

 

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

 

  September 30,   December 31, 
   2024   2023 
  (unaudited)   * 
Revenue recognized  $1,174,500   $621,800 
Less: billings to date   (1,140,200)   (604,800)
Contract assets   34,300    17,000 
Billings to date   2,752,500    2,262,000 
Revenue recognized   (2,066,700)   (1,432,200)
Contract liabilities  $685,800   $829,800 

 

NOTE 9 – INVESTMENTS

 

Paragon Waste Solutions LLC

 

Since its inception through September 30, 2024, 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.

 

13
 

 

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, and SEER was granted back an international license to use the patented technology in any territory outside of North America. 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, 2024 (Unaudited), and December 31, 2023*, 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, 2023  $4,243,100   $1,605,000   $509,800   $1,843,900   $8,201,800 
Increase in borrowing   842,400(1)   -    -    -    842,400 
Principal reductions   (133,700)   -    (7,100)   -    (140,800)
Long term debt to current   -    -    4,900    (4,900)   - 
Amortization of debt discount   -    -    -    -    - 
Balance September 30, 2024   $ 4,951,800(2)  $1,605,000   $507,600    $ 1,839,000(3)  $8,903,400 

 

(1) A) Secured note payable of $150,000, secured by certain receipts and equity, dated January 31, 2024, interest at an annual rate of 8.0% simple interest. For the nine months ended September 30, 2024, the Company recorded interest expense of $8,000. There was $8,000 accrued and unpaid interest as of June 30, 2024. B) An unsecured note payable of $30,000, dated March 27, 2024, interest at an annual rate of 8% simple interest and matures on May 31, 2024. For the nine months ended September 30, 2024, the Company recorded interest expense of $1,200. There was $1,200 accrued and unpaid interest as of September 30, 2024. C) An unsecured note payable of $37,400, dated February 6, 2024, interest at an annual rate of 10% interest and is payable in ten payments ending in November of 2024. For the nine months ended September 30, 2024, the Company recorded interest expense of $1,600. There was $0 accrued and unpaid interest as of September 30, 2024. D) A secured note payable of $200,000, dated April 12, 2024, interest at an annual rate of 8% simple interest and matures on April 11, 2025. For the nine months ended September 30, 2024, the Company recorded interest expense of $7,500. There was $7,500 accrued and unpaid interest as of September 30, 2024. E) A secured note payable of $100,000, dated July 12, 2024, interest at an annual rate of 8% simple interest and matures on September 1, 2024, with a minimum interest payable of $3,750. For the nine months ended September 30, 2024, the Company recorded interest expense of $3,750. Both principal and interest were paid during the nine months ended September 30, 2024. F) A secured note payable of $100,000, dated August 22, 2024, interest at an annual rate of 8% simple interest and matures on December 1, 2024, with a minimum interest payable of $3,750. For the nine months ended September 30, 2024, the Company recorded interest expense of $900. There was $900 accrued and unpaid interest as of September 30, 2024. G) A secured note payable of $75,000, dated August 9, 2024, interest at an annual rate of 8% simple interest and matures on August 8, 2025. For the nine months ended September 30, 2024, the Company recorded interest expense of $900. There was $900 accrued and unpaid interest as of September 30, 2024. H) A secured note payable of $150,000, dated August 10, 2024, interest at an annual rate of 8% simple interest and matures on August 9, 2025. For the nine months ended September 30, 2024, the Company recorded interest expense of $1,700. There was $1,700 accrued and unpaid interest as of September 30, 2024.
(2) The balance consists of $4,433,800 of secured notes, and $508,000 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, 2024   December 31, 2023 
  (unaudited)   * 
Short term notes  $125,000   $125,000 
Accrued interest   88,000    76,400 
Total short-term notes and accrued interest - Related parties  $213,000   $201,400 

 

NOTE 12 – EQUITY TRANSACTIONS

 

2024 Common Stock Transactions

 

During the nine months ended September 30, 2024, no new equity transactions have occurred.

 

2023 Common Stock Transactions

 

During the nine months ended September 30, 2023, 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 from one, and three customers, for the nine months ended September 30, 2024, and 2023 that surpassed the 10% threshold of total revenue, respectively. In total, these customers represented approximately 17% and 38% 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, 2024 and 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):

 

   2024   2023 
   Nine months ended September 30, 
   2024   2023 
Options   875,000    1,000,000 
Convertible notes payable, including accrued interest   3,644,800    3,443,000 
Potentially dilutive securities   4,519,800    4,443,000 

 

NOTE 15 – DISCONTINUED SEM OPERATIONS

 

On January 1, 2023, the Company’s board of directors, by unanimous consent, adopted a resolution to discontinue the then-current media production operations of the Company’s wholly owned subsidiary, SEM, LLC. For the unaudited nine months ended September 30, 2024 and 2023, all media production operations from SEM have been reported as discontinued operations. Management intends to use the SEM entity for the delivery of biochar kilns to Biochar Now and, further, to commence SEER’s own biochar production in Texas under a joint venture license from Biochar Now.

 

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

 

   September 30,   December 31, 
   2024   2023 
   (unaudited)   * 
ASSETS          
Property and equipment, net  $-    54,300 
Total Assets held for sale  $-   $54,300 
           
LIABILITIES          
Accounts payable  $24,500    25,700 
Accrued liabilities   10,000    10,000 
Current portion of long-term debt   -    7,200 
Total current liabilities   34,500    42,900 
           
Long-term debt   -    - 
           
Total liabilities held for sale  $34,500   $42,900 

 

16
 

 

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

 

   2024   2023 
   For the nine months ended 
  September 30, 
   2024   2023 
         
Services revenue  $-   $- 
           
Services costs   -    - 
General and administrative expenses   -    (14,700)
Salaries and related expenses   -    - 
Other income (expense)   -    174,600 
Gain on sale of assets held for sale   3,700    - 
Total income (expense)   3,700    159,900 
           
Operating income (loss)   3,700    159,900 
Income tax benefit   -    - 
           
Total income (loss) from discontinued operations  $3,700   $159,900 

 

NOTE 16 – SEGMENT INFORMATION AND MAJOR CUSTOMERS

 

The Company currently has identified two segments as follows:

 

  MV, SEM, 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, 2024 and 2023 is as follows:

 

Three Months Ended September 30,

 

2024  Environmental   Solid         
   Solutions   Waste   Corporate   Total 
                 
Revenue  $888,800   $-   $-   $888,800 
Depreciation and amortization   200    -    3,600    3,800 
Interest expense   200    -    236,800    237,000 
Net income (loss) attributable to SEER common stockholders   119,200    (2,500)   (577,800)   (461,100)
Capital expenditures (cash and noncash)   -    -    -    - 
Total assets  $892,200   $-   $290,100   $1,182,300 

 

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

 

Nine Months Ended September 30,

 

2024  Environmental   Solid         
   Solutions   Waste   Corporate   Total 
                 
Revenue  $2,640,500   $-   $-   $2,640,500 
Depreciation and amortization   5,900    -    5,500    11,400 
Interest expense   600    -    685,300    685,900 
Net income (loss) attributable to SEER common stockholders   182,800    (900)   (1,669,800)   (1,487,900)
Capital expenditures (cash and noncash)   19,200    -    3,500    22,700 
Total assets  $892,200   $-   $290,100   $1,182,300 

 

2023  Environmental   Solid         
   Solutions   Waste   Corporate   Total 
                 
Revenue  $2,154,700   $-   $-   $2,154,700 
Depreciation and amortization   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(1) $554,800   $-   $532,200   $1,087,000 

 

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

 

NOTE 17 – SUBSEQUENT EVENTS

 

In October 2024, the Company received proceeds of $300,000 by issuing a secured short-term promissory note, bearing interest at a rate of 8% per annum, and maturing on November 22, 2024. The interest rate increases to 12% after November 22, 2024, if not paid in full.

 

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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 16, 2024. 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, for the purpose of acquiring one or more businesses under the name of Satellite Organizing Solutions, Inc. (“SOZG”). In January 2008, SOZG changed its name to Strategic Environmental & Energy Resources, Inc. SEER is dedicated to assembling complementary service and environmental, clean-technology businesses that provide safe, innovative, cost-effective, and profitable solutions in the environmental, waste management, and renewable energy industries. SEER currently operates four companies with its headquarters in Broomfield, Colorado. Through its operating companies, SEER provides environmental products and solutions throughout North America and is pursuing international markets for its technologies and products. SEER’s operating companies are discussed in more detail below.

 

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 management/treatment, emissions capture and conditioning, and environmental soil amendments and organic fertilizers. 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 renewable biogas, emission capture and control, renewable “green gas” capture and sale, organic soil amendments and fertilizers, 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 Colorado limited liability company registered to do business in Texas. It was established as a materials technology development business with its sole operating facility in central Texas. Initially, its primary purpose was developing advanced chemical absorbents and catalysts that enhance the capability of biogas produced from landfills, wastewater treatment operations, and agricultural digester operations. SEM’s central Texas media operations were discontinued during the year ended December 31, 2023. SEM’s current objective is to arrange the manufacturing and sale of biochar production kilns and related equipment, as well as own and operate a biochar production facility in northeast Texas under a joint venture license agreement from Biochar Now, LLC.

 

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. This technology, commercially referred to as CoronaLux™, is designed and intended for the “clean” destruction of hazardous chemical and biological waste (i.e., medical waste) thereby eliminating the need for costly segregation, transportation, incineration or landfill (with their associated legacy liabilities). In 2023 SEER sold its North American patent rights in a stock transaction and now holds a small, minority interest in Amlon Holdings. SEER continues to have the rights to develop the technology internationally (outside of North America) and continues to promote and market the CoronaLux technology in international markets.

 

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 promoting both domestic and international sales. Revenue and expenses of PelleChar were not material for the period ended September 30, 2024.

 

Joint Ventures

 

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, 2024.

 

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 $35.9 million as of September 30, 2024, and $33.7 million as of September 30, 2023. For the nine months ended September 30, 2024, the Company incurred a net loss from continuing operations of approximately $1.5 million. The Company had a working capital deficit of approximately $13.1 million as of September 30, 2024. 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, 2024, 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, 2024, the Company raised approximately $0.8 million from the issuance of short-term, 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 the media production of SEM, a specific 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 continues to own a small amount of equity in Biochar Now, LLC (less than 1%) which it intends to leverage or sell back. 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.

 

20
 

 

Results of Operations for the Three Months Ended September 30, 2024, and 2023

 

Total revenues were consistent at $0.9 million for the three months ended September 30, 2024, and 2023, respectively.

 

Operating expenses, which include cost of products, general and administrative (G&A) expenses, and salaries and related expenses, were consistent at approximately $1.1 million for both the three months ended September 30, 2024 and 2023.

 

Total other income and expense was a net expense of approximately $0.2 million for the three months ended September 30, 2024 and approximately $0.2 million for the three months ended September 30, 2023. The majority of other income and expense is interest expense, which was consistent at $0.2 million for both the three months ended September 30, 2024 and 2023.

 

There is no provision for income taxes for both the three months ended September 30, 2024, and 2023, 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, 2024, and 2023.

 

Loss from continuing operations was approximately $0.5 million and $0.6 million, for the three months ended September 30, 2024 and 2023, respectively. The net loss attributable to SEER after deducting $800 for the non-controlling interest was approximately $0.5 million for the three months ended September 30, 2024, which was consistent compared to a net loss of approximately $0.5 million, after adding $2,200 in non-controlling interest and deducting $400 loss from discontinued operations, for the three months ended September 30, 2023.

 

Results of Operations for the Nine Months Ended September 30, 2024, and 2023

 

Total revenues were $2.6 million and $2.2 million for the nine months ended September 30, 2024, and 2023, respectively. The increase of approximately $0.4 million, or 18% in revenues comparing the nine months ended September 30, 2024, to the nine months ended September 30, 2023, is attributable to our product percent-complete contract revenue increasing due to several material projects being postponed from prior periods due to site preparation delays, coming online, and the delivery of ordered kilns to BioChar.

 

Operating expenses, which include cost of products, general and administrative (G&A) expenses, and salaries and related expenses, were approximately $3.6 million for the nine months ended September 30, 2024 and approximately $3.4 million for the nine months ended September 30, 2023. Product costs increased $0.2 million for the nine months ended September 30, 2024, compared to the nine months ended September 30, 2023, due to above mentioned kiln deliveries in the second quarter of 2024, and increased activity in our percent-complete contracts. G&A expenses decreased $0.1 million, primarily due to reduced professional and accounting fees.

 

Total other income and expense was a net expense of approximately $0.5 million for the nine months ended September 30, 2024 and approximately $0.6 million for the nine months ended September 30, 2023. The majority of other income and expense is interest expense, which was consistent at $0.7 million for both the nine months ended September 30, 2024 and 2023. During the nine months ended September 30, 2024 we also had approximately $0.2 million in other income, a result of selling equity units the Company owned in Biochar Now, LLC.

 

There is no provision for income taxes for both the nine months ended September 30, 2024, and 2023, 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, 2024, and 2023.

 

21
 

 

Loss from continuing operations was approximately $1.5 million and $1.8 million, for the nine months ended September 30, 2024 and 2023, respectively. The net loss attributable to SEER after deducting $3,200 for the non-controlling interest, and adding a gain from discontinued operations of $3,700 was approximately $1.5 million for the nine months ended September 30, 2024, as compared to a net loss of approximately $1.7 million, after adding $1,500 in non-controlling interest and adding $159,900 gain from discontinued operations, for the nine months ended September 30, 2023.

 

Results of Discontinued Operations for the Nine Months Ended September 30, 2024 and 2023

 

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

 

   For the nine months ended 
   September 30, 
   2024   2023 
         
Services revenue  $-   $- 
           
Services costs   -    - 
General and administrative expenses   -    (14,700)
Salaries and related expenses   -    - 
Other income (expense)   -    174,600 
Gain on sale of assets held for sale   3,700    - 
Total income (expense)   3,700    159,900 
           
Operating income (loss)   3,700    159,900 
Income tax benefit   -    - 
           
Total income (loss) from discontinued operations  $3,700   $159,900 

 

There is no provision for income taxes for both the nine months ended September 30, 2024, and 2023, due to our net loss carryforwards and we continue to maintain full allowances covering our net deferred tax benefits as of September 30, 2024 and 2023.

 

Changes in Cash Flow

 

Operating Activities

 

The Company had net cash used by operating activities for the nine months ended September 30, 2024 of $0.7 million, and for the nine months ended September 30, 2023 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, bad debt, as well as fixed assets held for sale. Net loss of $1.7 million for the nine months ended September 30, 2023 decreased to $1.5 million for the nine months ended September 30, 2024. Non-cash adjustments increased cash provided of $6,600 for the nine months ended September 30, 2024, compared to cash used of $0.2 million for the nine months ended September 30, 2023.

 

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

 

a) changes in accounts payable, accrued liabilities, and customer deposits provided $1.1 million in the first nine months of 2024, compared to providing $0.4 million in the first nine months of 2023,
b) changes in deferred revenue provided $0.2 million in the first nine months of 2024, compared to providing $14,600 in the first nine months of 2023,
c) changes in accounts receivable used $0.1 million in the first nine months of 2024, compared to providing $0.3 million in the first nine months of 2023,

 

22
 

 

d) changes in prepaid expenses and other assets used $0.2 million in the first nine months of 2024, compared to providing $0.1 million in the first nine months of 2023,
e) changes in contract liabilities used $0.1 million in the first nine months of 2024, compared to providing $14,600 in the first nine months of 2023, and
f) changes in contract assets used $17,300 in the first nine months of 2024, compared to providing $0.1 million in the first nine months of 2023.

 

Investing activities

 

Net cash provided by investing activities was $36,800 for the nine months ended September 30, 2024, compared to providing $0.3 million for the nine months ended September 30, 2023. The Company sold fixed assets held for sale during the nine months ended September 30, 2024, collecting $0.1 million. The Company sold fixed assets held for sale during the nine months ended September 30, 2023, collecting $0.3 million. Purchase of property and equipment during the nine months ended September 30, 2024 amounted to $22,700.

 

Financing Activities

 

Net cash provided by financing activities was approximately $0.6 million for the nine months ended September 30, 2024, consistent with providing $0.6 million for the nine months ended September 30, 2023. 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 $24,200 has been reserved as of both September 30, 2024, and December 31, 2023.

 

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, 2024, and December 31, 2023, 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.

 

23
 

 

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, 2024.

 

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.

 

24
 

 

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.

 

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, 2024. 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 September 30, 2024. 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.

 

25
 

 

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.

 

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, 2024. 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, 2024. We are continuing to accrue interest at the stated rate of 12% per annum, which is a total of approximately $60,000 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, 2024. 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, 2024. We are continuing to accrue interest at the stated rate of 15% per annum, which is a total of approximately $223,300 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 $450,000 secured short-term note issued on December 14, 2019, was past due as of September 30, 2024. We are continuing to accrue interest at the stated rate of 15% per annum, which is a total of approximately $324,000 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 $100,000 secured short-term note issued on March 16, 2020, was past due as of September 30, 2024. We are continuing to accrue interest at the stated rate of 14% per annum, which is a total of approximately $63,600 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.

 

26
 

 

The $50,000 secured short-term note issued on March 17, 2020, was past due as of September 30, 2024. We are continuing to accrue interest at the stated rate of 14% per annum, which is a total of approximately $31,800 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, 2024. We are continuing to accrue interest at the stated rate of 15% per annum, which is a total of approximately $139,700 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 $120,000 secured short-term note issued on August 18, 2020, was past due as of September 30, 2024. We are continuing to accrue interest at the stated rate of 15% per annum, which is a total of approximately $74,100 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, 2024. We are continuing to accrue interest at the stated rate of 15% per annum, which is a total of approximately $171,200 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 $500,000 secured short-term note issued on August 15, 2022, was past due as of September 30, 2024. We are continuing to accrue interest at the stated rate of 10% per annum, which is a total of approximately $106,300 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 July 20, 2022, was past due as of September 30, 2024. We are continuing to accrue interest at the stated rate of 10% per annum, which is a total of approximately $17,600 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, 2024. We are continuing to accrue interest at the stated rate of 20% per annum, which is a total of approximately $622,000 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.

 

27
 

 

The $350,000 secured short-term note issued on January 20, 2023, was past due as of September 30, 2024. We are continuing to accrue interest at the stated rate of 8% per annum, which is a total of approximately $47,500 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 $300,000 secured short-term note issued on March 10, 2023, was past due as of September 30, 2024. We are continuing to accrue interest at the stated rate of 8% per annum, which is a total of approximately $37,500 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 $200,000 secured short-term note issued on May 16, 2023, was past due as of September 30, 2024. We are continuing to accrue interest at the stated rate of 8% per annum, which is a total of approximately $21,800 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.

 

ITEM 4. MINE SAFETY DISCLOSURES

 

Not Applicable.

 

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.

 

28
 

 

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 19, 2024 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

 

29

 

 

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, 2024, 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 19, 2024  
  /s/ J. John Combs III
 

J. John Combs III

  President and Chief Executive Officer

 

 

 

 

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, 2024, 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 19, 2024  
  /s/ Clark Knopik
 

Clark Knopik

Interim Chief Executive Officer

 

 

 

 

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, 2024, 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 19, 2024

 

  /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 Report on Form 10-Q for the period ended September 30, 2024, 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 19, 2024

 

  /s/ Clark Knopik
  Clark Knopik
  Interim Chief Financial Officer

 

 

 

v3.24.3
Cover - $ / shares
 9 Months Ended
Sep. 30, 2024
Nov. 15, 2024
Cover [Abstract]    
Document Type 10-Q  
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Document Quarterly Report true  
Document Transition Report false  
Document Period End Date Sep. 30, 2024  
Document Fiscal Period Focus Q3  
Document Fiscal Year Focus 2024  
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
Entity Listing, Par Value Per Share $ 0.001  
v3.24.3
Condensed Consolidated Balance Sheets - USD ($)
Sep. 30, 2024
Dec. 31, 2023
 [1]
Current Assets    
Cash and cash equivalents $ 42,200 $ 57,900
Accounts receivable, net of allowance for credit losses of $24,200 and $24,200, respectively 468,100 340,800
Inventory 2,100 16,800
Contract assets 34,300 17,000
Prepaid expenses and other current assets 390,100 81,400
Assets held for sale 54,300
Total Current Assets 936,800 568,200
Property and equipment, net 46,900 33,600
Intangible Assets, net 15,400 17,900
Right of use assets 143,200 191,300
Other assets 40,000 40,000
TOTAL ASSETS 1,182,300 851,000
Current Liabilities    
Accounts payable 1,183,700 816,600
Accrued liabilities 4,490,300 3,759,300
Contract liabilities 685,800 829,800
Deferred revenue 286,700 43,300
Customer deposits 26,800
Short term notes 4,951,800 4,243,100
Short term notes and accrued interest - related party 213,000 201,400
Convertible notes 1,605,000 1,605,000
Current portion of long-term debt and finance lease obligations 507,600 509,800
Current portion of lease liabilities 72,500 72,500
Liabilities held for sale 34,500 42,900
Total Current Liabilities 14,030,900 12,150,500
Lease liabilities net of current portion 91,900 145,100
Long term debt 1,839,000 1,843,900
Total Liabilities 15,961,800 14,139,500
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 June 30, 2024 and December 31, 2023 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 (35,865,800) (34,377,900)
Total stockholders’ deficit (12,826,900) (11,339,000)
Non-controlling interest (1,952,600) (1,949,500)
Total Deficit (14,779,500) (13,288,500)
TOTAL LIABILITIES AND STOCKHOLDERS’ DEFICIT $ 1,182,300 $ 851,000
[1] These numbers are derived from the audited financial statements for the year ended December 31, 2023.
v3.24.3
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($)
Sep. 30, 2024
Dec. 31, 2023
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]    
Allowance for credit losses $ 24,200 $ 24,200
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 65,088,575 65,088,575
Common stock, shares issuable [1] 65,088,575 65,088,575
Common stock, shares outstanding 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 at September 30, 2024 and December 31, 2023, per terms of note agreements.
v3.24.3
Condensed Consolidated Statements of Operations (Unaudited) - USD ($)
 3 Months Ended 9 Months Ended
Sep. 30, 2024
Sep. 30, 2023
Sep. 30, 2024
Sep. 30, 2023
Revenue:        
Total revenue $ 888,800 $ 870,300 $ 2,640,500 $ 2,154,700
Operating expenses:        
Products costs 613,400 594,500 1,893,800 1,578,400
General and administrative expenses 178,500 194,400 716,700 852,500
Salaries and related expenses 321,800 312,900 989,100 921,500
Total operating expenses 1,113,700 1,101,800 3,599,600 3,352,400
Loss from operations (224,900) (231,500) (959,100) (1,197,700)
Other income (expense):        
Interest expense (237,000) (222,400) (685,900) (654,000)
Other income (expense) 150,300 20,100
Total non-operating expense, net (237,000) (222,400) (535,600) (633,900)
Loss from continuing operations (461,900) (453,900) (1,494,700) (1,831,600)
Income (loss) from discontinued operations, net of tax (400) 3,700 159,900
Net Loss (461,900) (454,300) (1,491,000) (1,671,700)
Less: Net income (loss) attributable to non-controlling interest (800) (2,200) (3,100) (1,500)
Net Loss attributable to SEER common stockholders $ (461,100) $ (452,100) $ (1,487,900) $ (1,670,200)
Basic earnings per share attributable to SEER common stockholders        
Loss from continuing operations, per share $ (0.01) $ (0.01) $ (0.02) $ (0.03)
Income from discontinued operations, per share 0.00 (0.00) 0.00 0.00
Net Loss per share, basic (0.01) (0.01) (0.02) (0.03)
Fully diluted earnings per share attributable to SEER common stockholders        
Loss from continuing operations, per share (0.01) (0.01) (0.02) (0.03)
Income from discontinued operations, per share 0.00 (0.00) 0.00 0.00
Net Loss per share, basic $ (0.01) $ (0.01) $ (0.02) $ (0.03)
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 $ 888,800 $ 870,300 $ 2,640,500 $ 2,154,700
v3.24.3
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
Balances at Dec. 31, 2022 $ 65,100 $ 22,973,800 $ 25,000 $ (25,000) $ (32,005,100) $ (1,941,800) $ (10,908,000)
Balances, shares at Dec. 31, 2022 65,088,600            
Net income (loss) (779,400) 2,800 (776,600)
Balances at Mar. 31, 2023 $ 65,100 22,973,800 25,000 (25,000) (32,784,500) (1,939,000) (11,684,600)
Balances, shares at Mar. 31, 2023 65,088,600            
Balances at Dec. 31, 2022 $ 65,100 22,973,800 25,000 (25,000) (32,005,100) (1,941,800) (10,908,000)
Balances, shares at Dec. 31, 2022 65,088,600            
Net income (loss)               (1,671,700)
Balances at Sep. 30, 2023 $ 65,100 22,973,800 25,000 (25,000) (33,675,300) (1,943,300) (12,579,700)
Balances, shares at Sep. 30, 2023 65,088,600            
Balances at Mar. 31, 2023 $ 65,100 22,973,800 25,000 (25,000) (32,784,500) (1,939,000) (11,684,600)
Balances, shares at Mar. 31, 2023 65,088,600            
Net income (loss) (438,700) (2,100) (440,800)
Balances at Jun. 30, 2023 $ 65,100 22,973,800 25,000 (25,000) (33,223,200) (1,941,100) (12,125,400)
Balances, shares at Jun. 30, 2023 65,088,600            
Net income (loss) (452,100) (2,200) (454,300)
Balances at Sep. 30, 2023 $ 65,100 22,973,800 25,000 (25,000) (33,675,300) (1,943,300) (12,579,700)
Balances, shares at Sep. 30, 2023 65,088,600            
Balances at Dec. 31, 2023 $ 65,100 22,973,800 25,000 (25,000) (34,377,900) (1,949,500) (13,288,500) [1]
Balances, shares at Dec. 31, 2023 65,088,600            
Net income (loss) (352,200) (900) (353,100)
Balances at Mar. 31, 2024 $ 65,100 22,973,800 25,000 (25,000) (34,730,100) (1,950,400) (13,641,600)
Balances, shares at Mar. 31, 2024 65,088,600            
Balances at Dec. 31, 2023 $ 65,100 22,973,800 25,000 (25,000) (34,377,900) (1,949,500) (13,288,500) [1]
Balances, shares at Dec. 31, 2023 65,088,600            
Net income (loss)               (1,491,000)
Balances at Sep. 30, 2024 $ 65,100 22,973,800 25,000 (25,000) (35,865,800) (1,952,600) (14,779,500)
Balances, shares at Sep. 30, 2024 65,088,600            
Balances at Mar. 31, 2024 $ 65,100 22,973,800 25,000 (25,000) (34,730,100) (1,950,400) (13,641,600)
Balances, shares at Mar. 31, 2024 65,088,600            
Net income (loss) (674,600) (1,400) (676,000)
Balances at Jun. 30, 2024 $ 65,100 22,973,800 25,000 (25,000) (35,404,700) (1,951,800) (14,317,600)
Balances, shares at Jun. 30, 2024 65,088,600            
Net income (loss) (461,100) (800) (461,900)
Balances at Sep. 30, 2024 $ 65,100 $ 22,973,800 $ 25,000 $ (25,000) $ (35,865,800) $ (1,952,600) $ (14,779,500)
Balances, shares at Sep. 30, 2024 65,088,600            
[1] These numbers are derived from the audited financial statements for the year ended December 31, 2023.
v3.24.3
Condensed Consolidated Statement of Cash Flows (Unaudited) - USD ($)
 9 Months Ended
Sep. 30, 2024
Sep. 30, 2023
Cash flows from operating activities:    
Loss from continuing operations $ (1,494,700) $ (1,831,600)
Income (loss) from discontinued operations 3,700 159,900
Net Loss (1,491,000) (1,671,700)
Adjustments to reconcile net loss to net cash provided by operating activities:    
Depreciation and amortization 11,400 16,800
Gain on sale of fixed assets 500
Gain on assets held for sale (5,300) (175,600)
Bad debt (10,900)
Changes in operating assets and liabilities:    
Accounts receivable (127,300) 260,600
Contract assets (17,300) 121,400
Inventory 14,700 (7,000)
Prepaid expenses and other assets (223,200) 93,200
Accounts payable, accrued liabilities, and customer deposits 1,090,200 350,300
Contract liabilities (144,000) 120,800
Deferred revenue 243,400 14,600
Assets and liabilities held for sale (8,400) (31,500)
Net cash used in operating activities (656,300) (919,000)
Cash flows from investing activities:    
Purchase of property and equipment (22,700)
Proceeds from the sale of fixed assets held for sale 59,500 338,500
Net cash (used) provided by investing activities 36,800 338,500
Cash flows from financing activities:    
Payments of notes and capital lease obligations (201,200) (241,100)
Proceeds from short-term and long-term debt 805,000 850,000
Net cash provided by financing activities 603,800 608,900
Net increase (decrease) in cash (15,700) 28,400
Cash at the beginning of period 57,900 21,500
Cash at the end of period 42,200 49,900
Supplemental disclosures of cash flow information:    
Cash paid for interest 16,700 23,500
Financing of prepaid insurance premiums $ 37,400 $ 51,100
v3.24.3
ORGANIZATION AND FINANCIAL CONDITION
 9 Months Ended
Sep. 30, 2024
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 are: 1) MV, LLC (d/b/a MV Technologies) (“MV”), which 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.; and 2) Strategic Environmental Materials, LLC, (“SEM”), a materials technology company previously focused on the development of cost-effective chemical absorbents. The media production operations were discontinued during the year ended December 31, 2023. (See Note 15)

 

The two majority-owned subsidiaries are 1) Paragon Waste Solutions, LLC (“PWS”), and 2) PelleChar, LLC (“PelleChar”). PWS is currently owned 54% by SEER, and PelleChar is owned 51% by SEER.

 

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. (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 an accumulated deficit of approximately $35.9 million as of September 30, 2024, and for the nine months ended September 30, 2024, we incurred a net loss from continuing operations of approximately $1.5 million. As of September 30, 2024, our current liabilities exceeded our current assets by approximately $13.1 million. 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, 2024, 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, 2024, the Company raised approximately $0.8 million from the issuance of short-term and long-term debt, offset by payments of principal on short term notes of $0.2 million, 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. Critical to achieving profitability will be the ability to license and or sell, permit and operate through the Company’s joint ventures. 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 16, 2024, for the year ended December 31, 2023.

 
v3.24.3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
 9 Months Ended
Sep. 30, 2024
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, 2024, and 2023.

 

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,
2024		   December 31,
2023		 
   (unaudited)   * 
Finished goods  $2,100   $16,800 
           
Total inventory  $2,100   $16,800 

 

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, 2024, and 2023 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, 2024, and 2023. 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, 2023. The tax periods for the years ending December 31, 2021, through 2023 are open to examination by federal and state authorities.

 
v3.24.3
REVENUE
 9 Months Ended
Sep. 30, 2024
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)

 

   Three months ended
September 30, 2024		 
   Environmental Solutions 
     
Sources of Revenue     
Product sales  $720,000 
Media sales   168,800 
Total Revenue  $888,800 

 

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

 

   Nine months ended
September 30, 2024		 
   Environmental Solutions 
     
Sources of Revenue     
Product sales  $2,007,800 
Media sales   632,700 
Total Revenue  $2,640,500 

 

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

 

 

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 
             Deferred    Deferred  
    Accounts Receivable, net    Contract Assets    Contract Liabilities     Revenue
(current)		    Revenue
(non-current)		 
Balance as of September 30, 2024 (unaudited)  $468,100   $34,300   $685,800   $286,700   $- 
Balance as of December 31, 2023*   340,800    17,000    829,800    43,300    - 
Increase (decrease)  $127,300   $17,300   $(144,000)  $243,400   $- 

 

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, 2024, 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.

 
v3.24.3
PROPERTY AND EQUIPMENT
 9 Months Ended
Sep. 30, 2024
Property, Plant and Equipment [Abstract]  
PROPERTY AND EQUIPMENT

NOTE 4 – PROPERTY AND EQUIPMENT

 

Property and equipment was comprised of the following:

 

   September 30, 2024   December 31, 2023 
   (unaudited)   * 
Field and shop equipment  $397,600   $398,100 
Vehicles   72,500    72,500 
Furniture and office equipment   274,600    255,400 
Leasehold improvements   36,200    36,200 
          
Property and equipment, gross   780,900    762,200 
Less: accumulated depreciation and amortization   (734,000)   (728,600)
Property and equipment, net  $46,900   $33,600 

 

Depreciation expense for the three months ended September 30, 2024, and 2023 was $2,900 and $4,900, respectively. For the three months ended September 30, 2024, and 2023, depreciation expense included in cost of goods sold was $1,900 and $4,900, respectively. For the three months ended September 30, 2024, and 2023, depreciation expense included in selling, general and administrative expenses was $1,000 and $0, respectively.

 

Depreciation expense for the nine months ended September 30, 2024, and 2023 was $8,900 and $14,700, respectively. For the nine months ended September 30, 2024, and 2023, depreciation expense included in cost of goods sold was $5,900 and $14,700, respectively. For the nine months ended September 30, 2024, and 2023, depreciation expense included in selling, general and administrative expenses was $3,000 and $0, respectively.

 

 
v3.24.3
INTANGIBLE ASSETS
 9 Months Ended
Sep. 30, 2024
Goodwill and Intangible Assets Disclosure [Abstract]  
INTANGIBLE ASSETS

NOTE 5 – INTANGIBLE ASSETS

 

   September 30, 2024 (unaudited) 
   Gross carrying amount   Accumulated amortization   Net carrying value 
             
Customer list  $42,500   $(42,500)  $- 
Technology   684,000    (668,600)   15,400 
Trade name   54,900    (54,900)   - 
   $781,400   $(766,000)  $15,400 

 

   December 31, 2023* 
   Gross carrying amount   Accumulated amortization   Net carrying value 
             
Customer list  $42,500   $(42,500)  $- 
Technology   684,000    (666,100)   17,900 
Trade name   54,900    (54,900)   - 
   $781,400   $(763,500)  $17,900 

 

The estimated useful lives of the intangible assets range from seven to twenty years. Amortization expense was $900 and $700 for the three months ended September 30, 2024, and 2023, respectively. Amortization expense was $2,500 and $2,100 for the nine months ended September 30, 2024, and 2023, respectively.

 
v3.24.3
LEASES
 9 Months Ended
Sep. 30, 2024
Leases  
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, 2024, 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, 2024, Consolidated Balance Sheets. As of September 30, 2024, total right-of-use assets and operating lease liabilities were approximately $143,200 and $164,400, respectively. All operating lease expense is recognized on a straight-line basis over the lease term. In the nine months ended September 30, 2024, 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):

 

   Nine months ended September 30, 
   2024   2023 
         
Cash paid for operating lease liabilities  $97,000   $123,500 
Weighted-average remaining lease term   23 months    35 months 
Weighted-average discount rate   10%   10%

 

 

Maturities of lease liabilities as of September 30, 2024 were as follows:

 

      
2025  $23,000 
2026   93,600 
2027   64,000 
2028   - 
2029   - 
Thereafter   - 
Total operating lease   180,600 
Less imputed interest   (16,200)
Total lease liabilities   164,400 

 
v3.24.3
ACCRUED LIABILITIES
 9 Months Ended
Sep. 30, 2024
Payables and Accruals [Abstract]  
ACCRUED LIABILITIES

NOTE 7 – ACCRUED LIABILITIES

 

Accrued liabilities were comprised of the following:

 

  September 30,   December 31, 
   2024   2023 
  (unaudited)   * 
Accrued compensation and related taxes  $114,000   $89,000 
Accrued interest   4,054,200    3,396,700 
Accrued settlement/litigation claims   150,000    150,000 
Warranty and defect claims   56,300    51,000 
Other   115,800    72,600 
Total Accrued Liabilities  $4,490,300   $3,759,300 

 
v3.24.3
UNCOMPLETED CONTRACTS
 9 Months Ended
Sep. 30, 2024
Contractors [Abstract]  
UNCOMPLETED CONTRACTS

NOTE 8 – UNCOMPLETED CONTRACTS

 

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

 

  September 30,   December 31, 
   2024   2023 
  (unaudited)   * 
Revenue recognized  $1,174,500   $621,800 
Less: billings to date   (1,140,200)   (604,800)
Contract assets   34,300    17,000 
Billings to date   2,752,500    2,262,000 
Revenue recognized   (2,066,700)   (1,432,200)
Contract liabilities  $685,800   $829,800 

 
v3.24.3
INVESTMENTS
 9 Months Ended
Sep. 30, 2024
Investments, All Other Investments [Abstract]  
INVESTMENTS

NOTE 9 – INVESTMENTS

 

Paragon Waste Solutions LLC

 

Since its inception through September 30, 2024, 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, and SEER was granted back an international license to use the patented technology in any territory outside of North America. 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.

 
v3.24.3
DEBT
 9 Months Ended
Sep. 30, 2024
Debt Disclosure [Abstract]  
DEBT

NOTE 10 – DEBT

 

Debt as of September 30, 2024 (Unaudited), and December 31, 2023*, 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, 2023  $4,243,100   $1,605,000   $509,800   $1,843,900   $8,201,800 
Increase in borrowing   842,400(1)   -    -    -    842,400 
Principal reductions   (133,700)   -    (7,100)   -    (140,800)
Long term debt to current   -    -    4,900    (4,900)   - 
Amortization of debt discount   -    -    -    -    - 
Balance September 30, 2024   $ 4,951,800(2)  $1,605,000   $507,600    $ 1,839,000(3)  $8,903,400 

 

(1) A) Secured note payable of $150,000, secured by certain receipts and equity, dated January 31, 2024, interest at an annual rate of 8.0% simple interest. For the nine months ended September 30, 2024, the Company recorded interest expense of $8,000. There was $8,000 accrued and unpaid interest as of June 30, 2024. B) An unsecured note payable of $30,000, dated March 27, 2024, interest at an annual rate of 8% simple interest and matures on May 31, 2024. For the nine months ended September 30, 2024, the Company recorded interest expense of $1,200. There was $1,200 accrued and unpaid interest as of September 30, 2024. C) An unsecured note payable of $37,400, dated February 6, 2024, interest at an annual rate of 10% interest and is payable in ten payments ending in November of 2024. For the nine months ended September 30, 2024, the Company recorded interest expense of $1,600. There was $0 accrued and unpaid interest as of September 30, 2024. D) A secured note payable of $200,000, dated April 12, 2024, interest at an annual rate of 8% simple interest and matures on April 11, 2025. For the nine months ended September 30, 2024, the Company recorded interest expense of $7,500. There was $7,500 accrued and unpaid interest as of September 30, 2024. E) A secured note payable of $100,000, dated July 12, 2024, interest at an annual rate of 8% simple interest and matures on September 1, 2024, with a minimum interest payable of $3,750. For the nine months ended September 30, 2024, the Company recorded interest expense of $3,750. Both principal and interest were paid during the nine months ended September 30, 2024. F) A secured note payable of $100,000, dated August 22, 2024, interest at an annual rate of 8% simple interest and matures on December 1, 2024, with a minimum interest payable of $3,750. For the nine months ended September 30, 2024, the Company recorded interest expense of $900. There was $900 accrued and unpaid interest as of September 30, 2024. G) A secured note payable of $75,000, dated August 9, 2024, interest at an annual rate of 8% simple interest and matures on August 8, 2025. For the nine months ended September 30, 2024, the Company recorded interest expense of $900. There was $900 accrued and unpaid interest as of September 30, 2024. H) A secured note payable of $150,000, dated August 10, 2024, interest at an annual rate of 8% simple interest and matures on August 9, 2025. For the nine months ended September 30, 2024, the Company recorded interest expense of $1,700. There was $1,700 accrued and unpaid interest as of September 30, 2024.
(2) The balance consists of $4,433,800 of secured notes, and $508,000 unsecured notes payable.
(3) Secured notes.

 

 
v3.24.3
RELATED PARTY TRANSACTIONS
 9 Months Ended
Sep. 30, 2024
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, 2024   December 31, 2023 
  (unaudited)   * 
Short term notes  $125,000   $125,000 
Accrued interest   88,000    76,400 
Total short-term notes and accrued interest - Related parties  $213,000   $201,400 

 
v3.24.3
EQUITY TRANSACTIONS
 9 Months Ended
Sep. 30, 2024
Equity [Abstract]  
EQUITY TRANSACTIONS

NOTE 12 – EQUITY TRANSACTIONS

 

2024 Common Stock Transactions

 

During the nine months ended September 30, 2024, no new equity transactions have occurred.

 

2023 Common Stock Transactions

 

During the nine months ended September 30, 2023, 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.

 
v3.24.3
CUSTOMER CONCENTRATIONS
 9 Months Ended
Sep. 30, 2024
Risks and Uncertainties [Abstract]  
CUSTOMER CONCENTRATIONS

NOTE 13 – CUSTOMER CONCENTRATIONS

 

The Company had sales from operations from one, and three customers, for the nine months ended September 30, 2024, and 2023 that surpassed the 10% threshold of total revenue, respectively. In total, these customers represented approximately 17% and 38% 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.

 
v3.24.3
NET GAIN OR LOSS PER SHARE
 9 Months Ended
Sep. 30, 2024
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, 2024 and 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):

 

   2024   2023 
   Nine months ended September 30, 
   2024   2023 
Options   875,000    1,000,000 
Convertible notes payable, including accrued interest   3,644,800    3,443,000 
Potentially dilutive securities   4,519,800    4,443,000 

 
v3.24.3
DISCONTINUED SEM OPERATIONS
 9 Months Ended
Sep. 30, 2024
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 the then-current media production operations of the Company’s wholly owned subsidiary, SEM, LLC. For the unaudited nine months ended September 30, 2024 and 2023, all media production operations from SEM have been reported as discontinued operations. Management intends to use the SEM entity for the delivery of biochar kilns to Biochar Now and, further, to commence SEER’s own biochar production in Texas under a joint venture license from Biochar Now.

 

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

 

   September 30,   December 31, 
   2024   2023 
   (unaudited)   * 
ASSETS          
Property and equipment, net  $-    54,300 
Total Assets held for sale  $-   $54,300 
           
LIABILITIES          
Accounts payable  $24,500    25,700 
Accrued liabilities   10,000    10,000 
Current portion of long-term debt   -    7,200 
Total current liabilities   34,500    42,900 
           
Long-term debt   -    - 
           
Total liabilities held for sale  $34,500   $42,900 

 

 

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

 

   2024   2023 
   For the nine months ended 
  September 30, 
   2024   2023 
         
Services revenue  $-   $- 
           
Services costs   -    - 
General and administrative expenses   -    (14,700)
Salaries and related expenses   -    - 
Other income (expense)   -    174,600 
Gain on sale of assets held for sale   3,700    - 
Total income (expense)   3,700    159,900 
           
Operating income (loss)   3,700    159,900 
Income tax benefit   -    - 
           
Total income (loss) from discontinued operations  $3,700   $159,900 

 
v3.24.3
SEGMENT INFORMATION AND MAJOR CUSTOMERS
 9 Months Ended
Sep. 30, 2024
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, SEM, 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, 2024 and 2023 is as follows:

 

Three Months Ended September 30,

 

2024  Environmental   Solid         
   Solutions   Waste   Corporate   Total 
                 
Revenue  $888,800   $-   $-   $888,800 
Depreciation and amortization   200    -    3,600    3,800 
Interest expense   200    -    236,800    237,000 
Net income (loss) attributable to SEER common stockholders   119,200    (2,500)   (577,800)   (461,100)
Capital expenditures (cash and noncash)   -    -    -    - 
Total assets  $892,200   $-   $290,100   $1,182,300 

 

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

 

Nine Months Ended September 30,

 

2024  Environmental   Solid         
   Solutions   Waste   Corporate   Total 
                 
Revenue  $2,640,500   $-   $-   $2,640,500 
Depreciation and amortization   5,900    -    5,500    11,400 
Interest expense   600    -    685,300    685,900 
Net income (loss) attributable to SEER common stockholders   182,800    (900)   (1,669,800)   (1,487,900)
Capital expenditures (cash and noncash)   19,200    -    3,500    22,700 
Total assets  $892,200   $-   $290,100   $1,182,300 

 

2023  Environmental   Solid         
   Solutions   Waste   Corporate   Total 
                 
Revenue  $2,154,700   $-   $-   $2,154,700 
Depreciation and amortization   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(1) $554,800   $-   $532,200   $1,087,000 

 

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

 
v3.24.3
SUBSEQUENT EVENTS
 9 Months Ended
Sep. 30, 2024
Subsequent Events [Abstract]  
SUBSEQUENT EVENTS

NOTE 17 – SUBSEQUENT EVENTS

 

In October 2024, the Company received proceeds of $300,000 by issuing a secured short-term promissory note, bearing interest at a rate of 8% per annum, and maturing on November 22, 2024. The interest rate increases to 12% after November 22, 2024, if not paid in full.
v3.24.3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)
 9 Months Ended
Sep. 30, 2024
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, 2024, and 2023.

 
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,
2024		   December 31,
2023		 
   (unaudited)   * 
Finished goods  $2,100   $16,800 
           
Total inventory  $2,100   $16,800 

 
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, 2024, and 2023 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, 2024, and 2023. 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, 2023. The tax periods for the years ending December 31, 2021, through 2023 are open to examination by federal and state authorities.
v3.24.3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)
 9 Months Ended
Sep. 30, 2024
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,
2024		   December 31,
2023		 
   (unaudited)   * 
Finished goods  $2,100   $16,800 
           
Total inventory  $2,100   $16,800 
v3.24.3
REVENUE (Tables)
 9 Months Ended
Sep. 30, 2024
Revenue:  
SCHEDULE OF DISAGGREGATION OF REVENUE

Disaggregation of Revenue (Unaudited)

 

   Three months ended
September 30, 2024		 
   Environmental Solutions 
     
Sources of Revenue     
Product sales  $720,000 
Media sales   168,800 
Total Revenue  $888,800 

 

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

 

   Nine months ended
September 30, 2024		 
   Environmental Solutions 
     
Sources of Revenue     
Product sales  $2,007,800 
Media sales   632,700 
Total Revenue  $2,640,500 

 

   Nine months ended
September 30, 2023		 
   Environmental Solutions 
     
Sources of Revenue     
Product sales  $1,536,000 
Media sales   618,700 
Total Revenue  $2,154,700 
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 
             Deferred    Deferred  
    Accounts Receivable, net    Contract Assets    Contract Liabilities     Revenue
(current)		    Revenue
(non-current)		 
Balance as of September 30, 2024 (unaudited)  $468,100   $34,300   $685,800   $286,700   $- 
Balance as of December 31, 2023*   340,800    17,000    829,800    43,300    - 
Increase (decrease)  $127,300   $17,300   $(144,000)  $243,400   $- 
v3.24.3
PROPERTY AND EQUIPMENT (Tables)
 9 Months Ended
Sep. 30, 2024
Property, Plant and Equipment [Abstract]  
SCHEDULE OF PROPERTY PLANT AND EQUIPMENT

Property and equipment was comprised of the following:

 

   September 30, 2024   December 31, 2023 
   (unaudited)   * 
Field and shop equipment  $397,600   $398,100 
Vehicles   72,500    72,500 
Furniture and office equipment   274,600    255,400 
Leasehold improvements   36,200    36,200 
          
Property and equipment, gross   780,900    762,200 
Less: accumulated depreciation and amortization   (734,000)   (728,600)
Property and equipment, net  $46,900   $33,600 
v3.24.3
INTANGIBLE ASSETS (Tables)
 9 Months Ended
Sep. 30, 2024
Goodwill and Intangible Assets Disclosure [Abstract]  
SCHEDULE OF INTANGIBLE ASSETS

 

   September 30, 2024 (unaudited) 
   Gross carrying amount   Accumulated amortization   Net carrying value 
             
Customer list  $42,500   $(42,500)  $- 
Technology   684,000    (668,600)   15,400 
Trade name   54,900    (54,900)   - 
   $781,400   $(766,000)  $15,400 

 

   December 31, 2023* 
   Gross carrying amount   Accumulated amortization   Net carrying value 
             
Customer list  $42,500   $(42,500)  $- 
Technology   684,000    (666,100)   17,900 
Trade name   54,900    (54,900)   - 
   $781,400   $(763,500)  $17,900 
v3.24.3
LEASES (Tables)
 9 Months Ended
Sep. 30, 2024
Leases  
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):

 

   Nine months ended September 30, 
   2024   2023 
         
Cash paid for operating lease liabilities  $97,000   $123,500 
Weighted-average remaining lease term   23 months    35 months 
Weighted-average discount rate   10%   10%
SCHEDULE OF MATURITIES OF LEASE LIABILITIES

Maturities of lease liabilities as of September 30, 2024 were as follows:

 

      
2025  $23,000 
2026   93,600 
2027   64,000 
2028   - 
2029   - 
Thereafter   - 
Total operating lease   180,600 
Less imputed interest   (16,200)
Total lease liabilities   164,400 
v3.24.3
ACCRUED LIABILITIES (Tables)
 9 Months Ended
Sep. 30, 2024
Payables and Accruals [Abstract]  
SCHEDULE OF ACCRUED LIABILITIES

Accrued liabilities were comprised of the following:

 

  September 30,   December 31, 
   2024   2023 
  (unaudited)   * 
Accrued compensation and related taxes  $114,000   $89,000 
Accrued interest   4,054,200    3,396,700 
Accrued settlement/litigation claims   150,000    150,000 
Warranty and defect claims   56,300    51,000 
Other   115,800    72,600 
Total Accrued Liabilities  $4,490,300   $3,759,300 
v3.24.3
UNCOMPLETED CONTRACTS (Tables)
 9 Months Ended
Sep. 30, 2024
Contractors [Abstract]  
SCHEDULE OF UNCOMPLETED CONTRACTS

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

 

  September 30,   December 31, 
   2024   2023 
  (unaudited)   * 
Revenue recognized  $1,174,500   $621,800 
Less: billings to date   (1,140,200)   (604,800)
Contract assets   34,300    17,000 
Billings to date   2,752,500    2,262,000 
Revenue recognized   (2,066,700)   (1,432,200)
Contract liabilities  $685,800   $829,800 
v3.24.3
DEBT (Tables)
 9 Months Ended
Sep. 30, 2024
Debt Disclosure [Abstract]  
SCHEDULE OF DEBT

Debt as of September 30, 2024 (Unaudited), and December 31, 2023*, 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, 2023  $4,243,100   $1,605,000   $509,800   $1,843,900   $8,201,800 
Increase in borrowing   842,400(1)   -    -    -    842,400 
Principal reductions   (133,700)   -    (7,100)   -    (140,800)
Long term debt to current   -    -    4,900    (4,900)   - 
Amortization of debt discount   -    -    -    -    - 
Balance September 30, 2024   $ 4,951,800(2)  $1,605,000   $507,600    $ 1,839,000(3)  $8,903,400 

 

(1) A) Secured note payable of $150,000, secured by certain receipts and equity, dated January 31, 2024, interest at an annual rate of 8.0% simple interest. For the nine months ended September 30, 2024, the Company recorded interest expense of $8,000. There was $8,000 accrued and unpaid interest as of June 30, 2024. B) An unsecured note payable of $30,000, dated March 27, 2024, interest at an annual rate of 8% simple interest and matures on May 31, 2024. For the nine months ended September 30, 2024, the Company recorded interest expense of $1,200. There was $1,200 accrued and unpaid interest as of September 30, 2024. C) An unsecured note payable of $37,400, dated February 6, 2024, interest at an annual rate of 10% interest and is payable in ten payments ending in November of 2024. For the nine months ended September 30, 2024, the Company recorded interest expense of $1,600. There was $0 accrued and unpaid interest as of September 30, 2024. D) A secured note payable of $200,000, dated April 12, 2024, interest at an annual rate of 8% simple interest and matures on April 11, 2025. For the nine months ended September 30, 2024, the Company recorded interest expense of $7,500. There was $7,500 accrued and unpaid interest as of September 30, 2024. E) A secured note payable of $100,000, dated July 12, 2024, interest at an annual rate of 8% simple interest and matures on September 1, 2024, with a minimum interest payable of $3,750. For the nine months ended September 30, 2024, the Company recorded interest expense of $3,750. Both principal and interest were paid during the nine months ended September 30, 2024. F) A secured note payable of $100,000, dated August 22, 2024, interest at an annual rate of 8% simple interest and matures on December 1, 2024, with a minimum interest payable of $3,750. For the nine months ended September 30, 2024, the Company recorded interest expense of $900. There was $900 accrued and unpaid interest as of September 30, 2024. G) A secured note payable of $75,000, dated August 9, 2024, interest at an annual rate of 8% simple interest and matures on August 8, 2025. For the nine months ended September 30, 2024, the Company recorded interest expense of $900. There was $900 accrued and unpaid interest as of September 30, 2024. H) A secured note payable of $150,000, dated August 10, 2024, interest at an annual rate of 8% simple interest and matures on August 9, 2025. For the nine months ended September 30, 2024, the Company recorded interest expense of $1,700. There was $1,700 accrued and unpaid interest as of September 30, 2024.
(2) The balance consists of $4,433,800 of secured notes, and $508,000 unsecured notes payable.
(3) Secured notes.
v3.24.3
RELATED PARTY TRANSACTIONS (Tables)
 9 Months Ended
Sep. 30, 2024
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, 2024   December 31, 2023 
  (unaudited)   * 
Short term notes  $125,000   $125,000 
Accrued interest   88,000    76,400 
Total short-term notes and accrued interest - Related parties  $213,000   $201,400 
v3.24.3
NET GAIN OR LOSS PER SHARE (Tables)
 9 Months Ended
Sep. 30, 2024
Earnings Per Share [Abstract]  
SCHEDULE OF POTENTIALLY DILUTIVE SECURITIES

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

 

   2024   2023 
   Nine months ended September 30, 
   2024   2023 
Options   875,000    1,000,000 
Convertible notes payable, including accrued interest   3,644,800    3,443,000 
Potentially dilutive securities   4,519,800    4,443,000 
v3.24.3
DISCONTINUED SEM OPERATIONS (Tables)
 9 Months Ended
Sep. 30, 2024
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, 
   2024   2023 
   (unaudited)   * 
ASSETS          
Property and equipment, net  $-    54,300 
Total Assets held for sale  $-   $54,300 
           
LIABILITIES          
Accounts payable  $24,500    25,700 
Accrued liabilities   10,000    10,000 
Current portion of long-term debt   -    7,200 
Total current liabilities   34,500    42,900 
           
Long-term debt   -    - 
           
Total liabilities held for sale  $34,500   $42,900 

 

 

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

 

   2024   2023 
   For the nine months ended 
  September 30, 
   2024   2023 
         
Services revenue  $-   $- 
           
Services costs   -    - 
General and administrative expenses   -    (14,700)
Salaries and related expenses   -    - 
Other income (expense)   -    174,600 
Gain on sale of assets held for sale   3,700    - 
Total income (expense)   3,700    159,900 
           
Operating income (loss)   3,700    159,900 
Income tax benefit   -    - 
           
Total income (loss) from discontinued operations  $3,700   $159,900 
v3.24.3
SEGMENT INFORMATION AND MAJOR CUSTOMERS (Tables)
 9 Months Ended
Sep. 30, 2024
Segment Reporting [Abstract]  
SCHEDULE OF SEGMENT INFORMATION

Segment information for the (unaudited) three and nine months ended September 30, 2024 and 2023 is as follows:

 

Three Months Ended September 30,

 

2024  Environmental   Solid         
   Solutions   Waste   Corporate   Total 
                 
Revenue  $888,800   $-   $-   $888,800 
Depreciation and amortization   200    -    3,600    3,800 
Interest expense   200    -    236,800    237,000 
Net income (loss) attributable to SEER common stockholders   119,200    (2,500)   (577,800)   (461,100)
Capital expenditures (cash and noncash)   -    -    -    - 
Total assets  $892,200   $-   $290,100   $1,182,300 

 

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

 

Nine Months Ended September 30,

 

2024  Environmental   Solid         
   Solutions   Waste   Corporate   Total 
                 
Revenue  $2,640,500   $-   $-   $2,640,500 
Depreciation and amortization   5,900    -    5,500    11,400 
Interest expense   600    -    685,300    685,900 
Net income (loss) attributable to SEER common stockholders   182,800    (900)   (1,669,800)   (1,487,900)
Capital expenditures (cash and noncash)   19,200    -    3,500    22,700 
Total assets  $892,200   $-   $290,100   $1,182,300 

 

2023  Environmental   Solid         
   Solutions   Waste   Corporate   Total 
                 
Revenue  $2,154,700   $-   $-   $2,154,700 
Depreciation and amortization   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(1) $554,800   $-   $532,200   $1,087,000 

 

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

 
v3.24.3
ORGANIZATION AND FINANCIAL CONDITION (Details Narrative) - USD ($)
 9 Months Ended
Sep. 30, 2024
Sep. 30, 2023
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items]    
Accumulated deficit $ 35,900,000  
Net loss from continuing operations 1,500,000  
Working capital deficit 13,100,000  
Short term and long term debt 800,000  
Principal payments of short term notes 200,000  
Net cash provided by (used in) financing activities $ 603,800 $ 608,900
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%  
v3.24.3
SCHEDULE OF INVENTORY (Details) - USD ($)
Sep. 30, 2024
Dec. 31, 2023
Accounting Policies [Abstract]    
Finished goods $ 2,100 $ 16,800
Total inventory $ 2,100 $ 16,800 [1]
[1] These numbers are derived from the audited financial statements for the year ended December 31, 2023.
v3.24.3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) - USD ($)
 9 Months Ended
Sep. 30, 2024
Sep. 30, 2023
Accounting Policies [Abstract]    
Research and development expense $ 0 $ 0
Uncertain tax positions 0 0
Interest and penalties related to uncertain tax positions $ 0 $ 0
v3.24.3
SCHEDULE OF DISAGGREGATION OF REVENUE (Details) - Environmental Solutions [Member] - USD ($)
 3 Months Ended 9 Months Ended
Sep. 30, 2024
Sep. 30, 2023
Sep. 30, 2024
Sep. 30, 2023
Disaggregation of Revenue [Line Items]        
Total Revenue $ 888,800 $ 870,300 $ 2,640,500 $ 2,154,700
Product Sales [Member]        
Disaggregation of Revenue [Line Items]        
Total Revenue 720,000 673,100 2,007,800 1,536,000
Media Sales [Member]        
Disaggregation of Revenue [Line Items]        
Total Revenue $ 168,800 $ 197,200 $ 632,700 $ 618,700
v3.24.3
SCHEDULE OF CONTRACT BALANCES (Details) - USD ($)
 9 Months Ended
Sep. 30, 2024
Sep. 30, 2023
Dec. 31, 2023
Revenue:      
Accounts Receivable, net $ 468,100   $ 340,800
Contract Assets 34,300   17,000 [1]
Contract Liabilities 685,800   829,800
Deferred Revenue (current) 286,700   43,300
Deferred Revenue (noncurrent)  
Increase (decrease) in Accounts Receivable, net 127,300    
Increase (decrease) in Contract Assets 17,300 $ (121,400)  
Increase (decrease) in Contract Liabilities (144,000) $ 120,800  
Deferred Revenue (current), Increase (decrease) 243,400    
Deferred Revenue (non-current), Increase (decrease)    
[1] These numbers are derived from the audited financial statements for the year ended December 31, 2023.
v3.24.3
REVENUE (Details Narrative)
$ in Millions
Sep. 30, 2024
USD ($)
Revenue remaining performance obligations $ 1.0
Next 12 Months [Member]  
Revenue remaining performance obligations, percentage 85.00%
v3.24.3
SCHEDULE OF PROPERTY PLANT AND EQUIPMENT (Details) - USD ($)
Sep. 30, 2024
Dec. 31, 2023
Property, Plant and Equipment [Line Items]    
Property and equipment, gross $ 780,900 $ 762,200
Less: accumulated depreciation and amortization (734,000) (728,600)
Property and equipment, net 46,900 33,600 [1]
Field and Shop Equipment [Member]    
Property, Plant and Equipment [Line Items]    
Property and equipment, gross 397,600 398,100
Vehicles [Member]    
Property, Plant and Equipment [Line Items]    
Property and equipment, gross 72,500 72,500
Furniture and Office Equipment [Member]    
Property, Plant and Equipment [Line Items]    
Property and equipment, gross 274,600 255,400
Leasehold Improvements [Member]    
Property, Plant and Equipment [Line Items]    
Property and equipment, gross $ 36,200 $ 36,200
[1] These numbers are derived from the audited financial statements for the year ended December 31, 2023.
v3.24.3
PROPERTY AND EQUIPMENT (Details Narrative) - USD ($)
 3 Months Ended 9 Months Ended
Sep. 30, 2024
Sep. 30, 2023
Sep. 30, 2024
Sep. 30, 2023
Impaired Assets to be Disposed of by Method Other than Sale [Line Items]        
Depreciation $ 2,900 $ 4,900 $ 8,900 $ 14,700
Cost of Sales [Member]        
Impaired Assets to be Disposed of by Method Other than Sale [Line Items]        
Depreciation 1,900 4,900 5,900 14,700
Selling, General and Administrative Expenses [Member]        
Impaired Assets to be Disposed of by Method Other than Sale [Line Items]        
Depreciation $ 1,000 $ 0 $ 3,000 $ 0
v3.24.3
SCHEDULE OF INTANGIBLE ASSETS (Details) - USD ($)
Sep. 30, 2024
Dec. 31, 2023
Finite-Lived Intangible Assets [Line Items]    
Gross carrying amount $ 781,400 $ 781,400
Accumulated amortization (766,000) (763,500)
Net carrying value 15,400 17,900
Customer Lists [Member]    
Finite-Lived Intangible Assets [Line Items]    
Gross carrying amount 42,500 42,500
Accumulated amortization (42,500) (42,500)
Net carrying value
Technology-Based Intangible Assets [Member]    
Finite-Lived Intangible Assets [Line Items]    
Gross carrying amount 684,000 684,000
Accumulated amortization (668,600) (666,100)
Net carrying value 15,400 17,900
Trade Names [Member]    
Finite-Lived Intangible Assets [Line Items]    
Gross carrying amount 54,900 54,900
Accumulated amortization (54,900) (54,900)
Net carrying value
v3.24.3
INTANGIBLE ASSETS (Details Narrative) - USD ($)
 3 Months Ended 9 Months Ended
Sep. 30, 2024
Sep. 30, 2023
Sep. 30, 2024
Sep. 30, 2023
Selling, General and Administrative Expenses [Member]        
Finite-Lived Intangible Assets [Line Items]        
Amortization expense $ 900 $ 700 $ 2,500 $ 2,100
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  
v3.24.3
SCHEDULE OF RIGHT-OF-USE-ASSETS AND RELATED LEASE LIABILITIES (Details) - USD ($)
 9 Months Ended
Sep. 30, 2024
Sep. 30, 2023
Leases    
Cash paid for operating lease liabilities $ 97,000 $ 123,500
Weighted-average remaining lease term 23 months 35 months
Weighted-average discount rate 10.00% 10.00%
v3.24.3
SCHEDULE OF MATURITIES OF LEASE LIABILITIES (Details)
Sep. 30, 2024
USD ($)
Leases  
2025 $ 23,000
2026 93,600
2027 64,000
2028
2029
Thereafter
Total operating lease 180,600
Less imputed interest (16,200)
Total lease liabilities $ 164,400
v3.24.3
LEASES (Details Narrative) - USD ($)
 9 Months Ended
Sep. 30, 2024
Dec. 31, 2023
 [1]
Lease renewal term 1 year  
Operating lease right of use asset $ 143,200 $ 191,300
Operating lease liability 164,400  
Operating lease costs $ 62,700  
Minimum [Member]    
Lease term 1 year  
Maximum [Member]    
Lease term 8 years  
[1] These numbers are derived from the audited financial statements for the year ended December 31, 2023.
v3.24.3
SCHEDULE OF ACCRUED LIABILITIES (Details) - USD ($)
Sep. 30, 2024
Dec. 31, 2023
Payables and Accruals [Abstract]    
Accrued compensation and related taxes $ 114,000 $ 89,000
Accrued interest 4,054,200 3,396,700
Accrued settlement/litigation claims 150,000 150,000
Warranty and defect claims 56,300 51,000
Other 115,800 72,600
Total Accrued Liabilities $ 4,490,300 $ 3,759,300 [1]
[1] These numbers are derived from the audited financial statements for the year ended December 31, 2023.
v3.24.3
SCHEDULE OF UNCOMPLETED CONTRACTS (Details) - USD ($)
Sep. 30, 2024
Dec. 31, 2023
Contractors [Abstract]    
Revenue recognized $ 1,174,500 $ 621,800
Less: billings to date (1,140,200) (604,800)
Contract assets 34,300 17,000 [1]
Billings to date 2,752,500 2,262,000
Revenue recognized (2,066,700) (1,432,200)
Contract liabilities $ 685,800 $ 829,800
[1] These numbers are derived from the audited financial statements for the year ended December 31, 2023.
v3.24.3
INVESTMENTS (Details Narrative) - USD ($)
$ in Millions
 9 Months Ended
Sep. 30, 2024
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    
v3.24.3
SCHEDULE OF DEBT (Details)
 9 Months Ended
Sep. 30, 2024
USD ($)
Short-Term Debt [Line Items]  
Debt, beginning balance $ 8,201,800
Increase in borrowing 842,400
Principal reductions (140,800)
Long term debt to current
Amortization of debt discount
Debt, ending balance 8,903,400
Short Term Notes [Member]  
Short-Term Debt [Line Items]  
Debt, beginning balance 4,243,100
Increase in borrowing 842,400 [1]
Principal reductions (133,700)
Long term debt to current
Amortization of debt discount
Debt, ending balance 4,951,800 [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 and Capital Lease Obligations [Member]  
Short-Term Debt [Line Items]  
Debt, beginning balance 509,800
Increase in borrowing
Principal reductions (7,100)
Long term debt to current 4,900
Amortization of debt discount
Debt, ending balance 507,600
Long Term Debt [Member]  
Short-Term Debt [Line Items]  
Debt, beginning balance 1,843,900
Increase in borrowing
Principal reductions
Long term debt to current (4,900)
Amortization of debt discount
Debt, ending balance $ 1,839,000 [3]
[1] A) Secured note payable of $150,000, secured by certain receipts and equity, dated January 31, 2024, interest at an annual rate of 8.0% simple interest. For the nine months ended September 30, 2024, the Company recorded interest expense of $8,000. There was $8,000 accrued and unpaid interest as of June 30, 2024. B) An unsecured note payable of $30,000, dated March 27, 2024, interest at an annual rate of 8% simple interest and matures on May 31, 2024. For the nine months ended September 30, 2024, the Company recorded interest expense of $1,200. There was $1,200 accrued and unpaid interest as of September 30, 2024. C) An unsecured note payable of $37,400, dated February 6, 2024, interest at an annual rate of 10% interest and is payable in ten payments ending in November of 2024. For the nine months ended September 30, 2024, the Company recorded interest expense of $1,600. There was $0 accrued and unpaid interest as of September 30, 2024. D) A secured note payable of $200,000, dated April 12, 2024, interest at an annual rate of 8% simple interest and matures on April 11, 2025. For the nine months ended September 30, 2024, the Company recorded interest expense of $7,500. There was $7,500 accrued and unpaid interest as of September 30, 2024. E) A secured note payable of $100,000, dated July 12, 2024, interest at an annual rate of 8% simple interest and matures on September 1, 2024, with a minimum interest payable of $3,750. For the nine months ended September 30, 2024, the Company recorded interest expense of $3,750. Both principal and interest were paid during the nine months ended September 30, 2024. F) A secured note payable of $100,000, dated August 22, 2024, interest at an annual rate of 8% simple interest and matures on December 1, 2024, with a minimum interest payable of $3,750. For the nine months ended September 30, 2024, the Company recorded interest expense of $900. There was $900 accrued and unpaid interest as of September 30, 2024. G) A secured note payable of $75,000, dated August 9, 2024, interest at an annual rate of 8% simple interest and matures on August 8, 2025. For the nine months ended September 30, 2024, the Company recorded interest expense of $900. There was $900 accrued and unpaid interest as of September 30, 2024. H) A secured note payable of $150,000, dated August 10, 2024, interest at an annual rate of 8% simple interest and matures on August 9, 2025. For the nine months ended September 30, 2024, the Company recorded interest expense of $1,700. There was $1,700 accrued and unpaid interest as of September 30, 2024.
[2] The balance consists of $4,433,800 of secured notes, and $508,000 unsecured notes payable.
[3] Secured notes.
v3.24.3
SCHEDULE OF DEBT (Details) (Parenthetical) - USD ($)
 3 Months Ended 9 Months Ended
Aug. 22, 2024
Aug. 10, 2024
Aug. 09, 2024
Jul. 12, 2024
Apr. 12, 2024
Mar. 27, 2024
Sep. 30, 2024
Sep. 30, 2023
Sep. 30, 2024
Sep. 30, 2023
Feb. 06, 2024
Jan. 31, 2024
Short-Term Debt [Line Items]                        
Interest expense             $ 237,000 $ 222,500 $ 685,900 $ 654,000    
Secured Note Payable [Member]                        
Short-Term Debt [Line Items]                        
Debt principal amount                       $ 150,000
Note payable, interest                       8.00%
Interest expense                 8,000      
Accrued and upaid interest                 8,000      
Unsecured Note Payable [Member]                        
Short-Term Debt [Line Items]                        
Debt principal amount           $ 30,000            
Note payable, interest           8.00%            
Interest expense                 1,200      
Accrued and upaid interest                 1,200      
Debt maturity date           May 31, 2024            
Unsecured Note Payable One [Member]                        
Short-Term Debt [Line Items]                        
Debt principal amount                     $ 37,400  
Note payable, interest                     10.00%  
Interest expense                 1,600      
Accrued and upaid interest                 0      
Secured Note Payable One [Member]                        
Short-Term Debt [Line Items]                        
Debt principal amount         $ 200,000              
Note payable, interest         8.00%              
Interest expense                 7,500      
Accrued and upaid interest                 7,500      
Debt maturity date         Apr. 11, 2025              
Secured Note Payable Two [Member]                        
Short-Term Debt [Line Items]                        
Debt principal amount       $ 100,000                
Note payable, interest       8.00%                
Interest expense                 3,750      
Debt maturity date       Sep. 01, 2024                
Minimum interest payable       $ 3,750                
Secured Note Payable Three [Member]                        
Short-Term Debt [Line Items]                        
Debt principal amount $ 100,000                      
Note payable, interest 8.00%                      
Interest expense                 900      
Accrued and upaid interest                 900      
Debt maturity date Dec. 01, 2024                      
Minimum interest payable $ 3,750                      
Secured Note Payable Four [Member]                        
Short-Term Debt [Line Items]                        
Debt principal amount     $ 75,000                  
Note payable, interest     8.00%                  
Interest expense                 900      
Accrued and upaid interest                 900      
Debt maturity date     Aug. 08, 2025                  
Secured Note Payable Five [Member]                        
Short-Term Debt [Line Items]                        
Debt principal amount   $ 150,000                    
Note payable, interest   8.00%                    
Interest expense                 1,700      
Accrued and upaid interest                 1,700      
Debt maturity date   Aug. 09, 2025                    
Secured Notes [Member]                        
Short-Term Debt [Line Items]                        
Notes Payable             4,433,800   4,433,800      
Unsecured Notes Payable [Member]                        
Short-Term Debt [Line Items]                        
Notes Payable             $ 508,000   $ 508,000      
v3.24.3
SCHEDULE OF RELATED PARTIES NOTES PAYABLE AND ACCRUED INTEREST (Details) - Related Party [Member] - USD ($)
Sep. 30, 2024
Dec. 31, 2023
Related Party Transaction [Line Items]    
Short term notes $ 125,000 $ 125,000
Accrued interest 88,000 76,400
Total short-term notes and accrued interest - Related parties $ 213,000 $ 201,400
v3.24.3
EQUITY TRANSACTIONS (Details Narrative)
 9 Months Ended
Sep. 30, 2024
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. 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.
Paragon Waste Solutions, LLC [Member]  
Percentage of non controlling equity interest 46.00%
PelleChar, LLC [Member]  
Percentage of non controlling equity interest 49.00%
v3.24.3
CUSTOMER CONCENTRATIONS (Details Narrative)
 9 Months Ended
Sep. 30, 2024
Sep. 30, 2023
Revenue Benchmark [Member] | Two and Three Customers [Member] | Customer Concentration Risk [Member]    
Concentration Risk [Line Items]    
Concentration risk percentage 17.00% 38.00%
v3.24.3
SCHEDULE OF POTENTIALLY DILUTIVE SECURITIES (Details) - shares
 9 Months Ended
Sep. 30, 2024
Sep. 30, 2023
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]    
Potentially dilutive securities 4,519,800 4,443,000
Options [Member]    
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]    
Potentially dilutive securities 875,000 1,000,000
Convertible Notes Payable Including Accrued Interest [Member]    
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]    
Potentially dilutive securities 3,644,800 3,443,000
v3.24.3
SCHEDULE OF DISCONTINUED OPERATIONS (Details) - USD ($)
 9 Months Ended
Sep. 30, 2024
Sep. 30, 2023
Dec. 31, 2023
Discontinued Operations and Disposal Groups [Abstract]      
Property and equipment, net   $ 54,300
Total Assets held for sale   54,300
Accounts payable 24,500   25,700
Accrued liabilities 10,000   10,000
Current portion of long-term debt   7,200
Total current liabilities 34,500   42,900
Long-term debt  
Total liabilities held for sale 34,500   $ 42,900 [1]
Services revenue  
Services costs  
General and administrative expenses (14,700)  
Salaries and related expenses  
Other income (expense) 174,600  
Gain on sale of assets held for sale 3,700  
Total income (expense) 3,700 159,900  
Operating income (loss) 3,700 159,900  
Income tax benefit  
Total income (loss) from discontinued operations $ 3,700 $ 159,900  
[1] These numbers are derived from the audited financial statements for the year ended December 31, 2023.
v3.24.3
SCHEDULE OF SEGMENT INFORMATION (Details) - USD ($)
 3 Months Ended 9 Months Ended
Sep. 30, 2024
Sep. 30, 2023
Sep. 30, 2024
Sep. 30, 2023
Dec. 31, 2023
 [2]
Segment Reporting Information [Line Items]          
Revenue $ 888,800 $ 870,300 $ 2,640,500 $ 2,154,700  
Depreciation and amortization 3,800 5,600 11,400 16,800  
Interest expense 237,000 222,500 685,900 654,000  
Stock-based compensation        
Net income (loss) attributable to SEER common stockholders (461,100) (453,600) (1,487,900) (1,670,200)  
Capital expenditures (cash and noncash) 22,700  
Total assets 1,182,300 1,087,000 [1] 1,182,300 1,087,000 [1] $ 851,000
Environmental Solutions [Member] | Operating Segments [Member]          
Segment Reporting Information [Line Items]          
Revenue 888,800 870,300 2,640,500 2,154,700  
Depreciation and amortization 200 5,600 5,900 16,800  
Interest expense 200 400 600 700  
Stock-based compensation        
Net income (loss) attributable to SEER common stockholders 119,200 66,800 182,800 (55,700)  
Capital expenditures (cash and noncash) 19,200  
Total assets 892,200 554,800 [1] 892,200 554,800 [1]  
Solid Waste [Member] | Operating Segments [Member]          
Segment Reporting Information [Line Items]          
Revenue  
Depreciation and amortization  
Interest expense  
Stock-based compensation        
Net income (loss) attributable to SEER common stockholders (2,500) (1,700) (900) 6,800  
Capital expenditures (cash and noncash)  
Total assets [1] [1]  
Corporate Segment [Member] | Operating Segments [Member]          
Segment Reporting Information [Line Items]          
Revenue  
Depreciation and amortization 3,600 5,500  
Interest expense 236,800 222,100 685,300 653,300  
Stock-based compensation        
Net income (loss) attributable to SEER common stockholders (577,800) (518,700) (1,669,800) (1,621,300)  
Capital expenditures (cash and noncash) 3,500  
Total assets $ 290,100 $ 532,200 [1] $ 290,100 $ 532,200 [1]  
[1] Segment information excludes the results of SEM media operations. SEM discontinued its media operations as of January 1, 2023, except net income (loss), of which SEM media operations is categorized as discontinued operations. (See Note 15)
[2] These numbers are derived from the audited financial statements for the year ended December 31, 2023.
v3.24.3
SEGMENT INFORMATION AND MAJOR CUSTOMERS (Details Narrative)
 9 Months Ended
Sep. 30, 2024
Integer
Segment Reporting [Abstract]  
Number of reporting segments 2
v3.24.3
SUBSEQUENT EVENTS (Details Narrative) - Subsequent Event [Member] - Unsecured Short-term Promissory Note [Member]
 1 Months Ended
Oct. 31, 2024
USD ($)
Subsequent Event [Line Items]  
Proceeds from debt $ 300,000
Interest rate 8.00%
Debt maturity date November 22, 2024
Interest rate increases 12.00%
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