What changed in this filing

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Item 2. Management’s Discussion and Analysis

2022-08-15 compared with 2022-05-16 · 109 added, 75 removed, 216 unchanged (46% of the section changed)

95 unchanged sentences

sales effort.

Revenue and expenses of PelleChar were not material for the three months ended March 31, 2022.

Revenue and expenses of PelleChar were not material for the six months ended June 30, 2022.

MWS Joint Venture :

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shown in the accompanying consolidated financial statements, the Company has experienced recurring operating losses, and has accumulated

a deficit of approximately $29.8 million as of March 31, 2022, and $29.4 million as of December 31, 2021.

For the three months ended

March 31, 2022, and 2021 we incurred a net loss of approximately $0.4 million, and $0.3 million, respectively.

31, 2022, and December 31, 2021, our current liabilities exceed our current assets by approximately $7.6 million and $7.5 million, respectively.

The primary reason for that working capital deficit increased from December 31, 2021, to March 31, 2022, is due to a net loss for the

The Company has limited common shares available for issue which may limit the ability to raise capital or settle debt through

issuance of shares.

These factors raise substantial doubt about the ability of the Company to continue to operate as a going concern

for a period of at least one year after the date of the issuance of our audited financial statements for the period ended March 31, 2022.

of a major portion of our assets as of March 31, 2022, is dependent upon our continued operations.

a deficit of approximately $30.3 million as of June 30, 2022, and $29.4 million as of December 31, 2021.

For the six months ended June

30, 2022, and 2021 we incurred a net loss of approximately $0.9 million, and $1.0 million, respectively.

As of June 30, 2022, and December

31, 2021, our current liabilities exceed our current assets by approximately $8.2 million and $7.5 million, respectively.

reason for that working capital deficit increased from December 31, 2021, to June 30, 2022, is due to a net loss for the first half of

fiscal year 2022.

The Company has limited common shares available for issue which may limit the ability to raise capital or settle debt

through issuance of shares.

These factors raise substantial doubt about the ability of the Company to continue to operate as a going

concern for a period of at least one year after the date of the issuance of our interim unaudited financial statements for the period

ended June 30, 2022.

of a major portion of our assets as of June 30, 2022, is dependent upon our continued operations.

The Company is dependent on generating

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to any adjustments that would be necessary should the Company be unable to report on a going concern basis.

of Operations for the Three Months Ended March 31, 2022, and 2021

revenues were $0.9 million and $0.7 million for the three months ended March 31, 2022, and 2021, respectively.

of Operations for the Three Months Ended June 30, 2022, and 2021

revenues were $1.1 million and $0.9 million for the three months ended June 30, 2022, and 2021, respectively.

The increase of approximately

$0.2 million or 22% in revenues comparing the three months ended March 31, 2022, to the three months ended March 31, 2021, is

attributable to the increases in revenues from our products segment revenue, which includes our environmental solutions segment, which

increased from approximately $0.7 million for the three months ended March 31, 2021, to approximately $0.9 million for the three months

ended March 31, 2022, an increase of approximately $0.2 million or approximately 22%.

Environmental solutions segment generated

more revenue as activity increased in our construction contracts, due to the relief of a general slowdown in the economy attributable

to the COVID-19 pandemic the prior year period.

expenses, which include cost of products, cost of solid waste and general and administrative (G&A) expenses, and salaries and related

expenses, were approximately $1.3 million for the three months ended March 31, 2022, an increase of approximately $0.4 million from $0.9

million for the three months ended March 31, 2021.

Product costs increased $0.2 million for the three months ended March 31, 2021, compared

to the three months ended March 31, 2022, primarily due to increased job costs connected to our percent complete contracts, as percent

$0.2 million or 22% in revenues comparing the three months ended June 30, 2022, to the three months ended June 30, 2021, is attributable

to the increases in revenues from our products segment revenue, which includes our environmental solutions segment, which increased from

approximately $0.9 million for the three months ended June 30, 2021, to approximately $1.1 million for the three months ended June 30,

2022, an increase of approximately $0.2 million or approximately 22%.

Environmental solutions segment generated more revenue as activity

increased in our construction contracts, due to the recovery from the slowdown in the economy attributable to the COVID-19 pandemic

the prior year period.

expenses, which include cost of products, cost of solid waste, general and administrative (G&A) expenses, and salaries and related

expenses, were approximately $1.5 million for the three months ended June 30, 2022, an increase of approximately $0.2 million from $1.2

million for the three months ended June 30, 2021.

Product costs increased $0.2 million for the three months ended June 30, 2022, compared

to the three months ended June 30, 2021, primarily due to increased job costs connected to our percent complete contracts, as percent

complete contract activity has increased, and the increased costs for freight was material for the quarter.

Salaries and related expenses

increased $0.2 million for the three months ended March 31, 2021, compared to the three months ended March 31, 2022, primarily due to

ERTC credits that reduced payroll taxes during the first quarter of 2021.

non-operating expense, net was $19,100 for the three months ended March 31, 2022, compared to $0.2 million expense for the three months

ended March 31, 2021.

During the three months ended March 31, 2022, the Company recorded $0.1 million in gain on debt extinguishment,

which resulted from the forgiveness of the Company’s PPP Loans from the US Treasury, and approximately $0.1 million gain on the

exchange of convertible units in a subsidiary for an outstanding debt and liabilities.

The units had no basis, resulting in a gain for

is no provision for income taxes for both the three months ended March 31, 2022, and 2021, due to our net losses for both periods and

we continue to maintain full allowances covering our net deferred tax benefits as of March 31, 2022, and 2021.

from continuing operations was approximately $0.4 million, for both the three months ended March 31, 2022, and 2021.

The net income attributable to SEER after deducting $4,100 for the non-controlling interest was $0.4 million for the three months ended

March 31, 2022, as compared to a net loss of $0.3 million, after deducting $12,800 in non-controlling interest and adding $33,500 gain

from discontinued operations, for the three months ended March 31, 2021.

As noted above, an increase in operating expenses, reducing

margins increased net loss by $0.2 million, which was offset by reduced non-operating expenses by $0.1 million due to gain on debt extinguishment

and the exchange of debt and liabilities for units of an entity invested in by SEER.

of Discontinued Operations for the Three Months Ended March 31, 2022 and 2021

were consistent at $0.3 million for the three months ended June 30, 2022, and 2021.

General and administrative expenses were consistent

at $0.3 million for the three months ended June 30, 2022, and 2021.

non-operating expense, net was $0.2 million for the three months ended June 30, 2022, which was consistent for the three months ended

June 30, 2021.

The material amount of this expense is interest expense, which was also consistent at $0.2 million for both the three

months ended June 30, 2022, and 2021.

is no provision for income taxes for both the three months ended June 30, 2022, and 2021, due to our net losses for both periods and

we continue to maintain full allowances covering our net deferred tax benefits as of June 30, 2022, and 2021.

from continuing operations was approximately $0.5 million, for both the three months ended June 30, 2022, and 2021.

The net income attributable

to SEER after deducting $18,200 for the non-controlling interest was $0.5 million for the three months ended June 30, 2022, as compared

to a net loss of $0.6 million, after adding back $28,300 in non-controlling interest and deducting $167,200 loss from discontinued operations,

for the three months ended June 30, 2021.

As noted above, an increase in operating expenses, reducing margins increased net loss by $0.2

million, which was offset by reduced loss from discontinued operations by $0.2 million due to abandonment of REGS.

of Operations for the Six Months Ended June 30, 2022, and 2021

revenues were $2.0 million and $1.7 million for the six months ended June 30, 2022, and 2021, respectively.

The increase of approximately

$0.3 million or 22% in revenues comparing the six months ended June 30, 2022, to the six months ended June 30, 2021, is attributable

to the increases in revenues from our products revenue, of our environmental solutions segment, which increased from

approximately $1.5 million for the six months ended June 30, 2021, to approximately $1.9 million for the six months ended June 30, 2022,

an increase of approximately $0.4 million or approximately 25%.

Environmental solutions segment generated more revenue as activity increased

in our construction contracts, due to the recovery from the slowdown in the economy attributable to the COVID-19 pandemic the prior

expenses, which include cost of products, cost of solid waste, general and administrative (G&A) expenses, and salaries and related

expenses, were approximately $2.7 million for the six months ended June 30, 2022, an increase of approximately $0.6 million from $2.1

million for the six months ended June 30, 2021.

Product costs increased $0.4 million for the six months ended June 30, 2022, compared

to the six months ended June 30, 2021, primarily due to increased job costs connected to our percent complete contracts, as percent complete

contract activity has increased, and the increased costs for freight was material for the first half of the fiscal year.

related expenses increased from $0.3 million for the six months ended June 30, 2021, to approximately $0.7 million for the six months

ended June 30, 2022.

The prior year period included ERTC Tax credits, reducing the amount of payroll taxes during the period.

and administrative expenses were consistent at $0.6 million for the six months ended June 30, 2022, and 2021.

non-operating expense, net was $0.2 million for the six months ended June 30, 2022, compared to $0.3 million for the six months ended

June 30, 2021.

During the six months ended June 30, 2022, the Company recorded $0.1 million in gain on debt extinguishment, which resulted

from the forgiveness of the Company’s PPP Loans from the US Treasury.

is no provision for income taxes for both the six months ended June 30, 2022, and 2021, due to our net losses for both periods and we

continue to maintain full allowances covering our net deferred tax benefits as of June 30, 2022, and 2021.

from continuing operations was approximately $0.9 million, for the six months ended June 30, 2022, and $0.8 million for the six months

ended June 30, 2021.

The net income attributable to SEER after adding back $22,200 for the non-controlling interest was $0.9 million for

the six months ended June 30, 2022, as compared to a net loss of $0.9 million, after adding back $41,100 in non-controlling interest

and deducting $133,700 loss from discontinued operations, for the six months ended June 30, 2021.

Net loss was consistent, $0.9 million

for both six months ended June 30, 2022, and 2021.

of Discontinued Operations for the Six Months Ended June 30, 2022, and 2021

of September 1, 2021, the Company abandoned its REGS subsidiary.

All revenue and expenses of our REGS subsidiary for 2021 are

classified as discontinued operations.

For the three months ended

All revenue and expenses of our REGS subsidiary for 2021 are classified

as discontinued operations.

For the six months ended

Services revenue

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Total income from discontinued operations

is no provision for income taxes for both the three months ended March 31, 2022, and 2021, due to our net loss carryforwards and we continue

to maintain full allowances covering our net deferred tax benefits as of March 31, 2022 and 2021.

Company had net cash used by operating activities for the three months ended March 31, 2022, and 2021 of $0.4 million and $0.7 million,

is no provision for income taxes for both the six months ended June 30, 2022, and 2021, due to our net loss carryforwards and we continue

to maintain full allowances covering our net deferred tax benefits as of June 30, 2022, and 2021.

Company had net cash used by operating activities for the six months ended June 30, 2022, and 2021 of $0.4 million and $0.8 million,

respectively.

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expense, provision for bad debt, non-cash interest expense, gain on debt extinguishment, and gain on extinguishment of debt.

increased from the three months ended March 31, 2021, of approximately $0.3 million, to $0.4 million for the three months ended March

Non-cash adjustments increased cash uses of $46,500 for the three months ended March 31, 2022, compared to cash uses of $16,500

for the three months ended March 31, 2021.

decreased from the six months ended June 30, 2021, of approximately $1.0 million, to $0.9 million for the six months ended June 30, 2022.

Non-cash adjustments were net uses of $17,800 for the six months ended June 30, 2022, compared to net cash sources of $25,800 for the

six months ended June 30, 2021.

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

a) changes in inventory provided approximately

$71,300 in cash in the first three months of 2022, compared to using $53,700 in the first three months of 2021, a net increase in cash

of approximately $125,000, b) changes in prepaid expenses and other assets used approximately $70,000 in the first three months of 2022,

compared to using $221,400 in the first three months of 2021, a net increase in cash of approximately $151,400, c) changes in accounts

payable, accrued liabilities, and customer deposits provided $274,400 in the first three months of 2022, compared to using $17,100 in

the first three months of 2021, a net increase in cash provided of approximately $0.3 million, d) changes in contract liabilities used

$2,400 in the first three months of 2022, compared to providing $84,600 in the first three months of 2021, a net increase in cash used

of approximately $0.1 million.

cash used by investing activities was $28,300 for the three months ended March 31, 2022, compared to providing $75,800 of cash for the

three months ended March 31, 2021.

The purchase of property and equipment was $28,300 for the three months ended March 31, 2022, and

$0 for the three months ended March 31, 2021.

The proceeds from sale of fixed assets totaled $75,800 for the three months ended March

31, 2021, while $0 for the current quarter ended March 31, 2022.

cash provided by financing activities was approximately $0.3 million for the three months ended March 31, 2022, compared with providing

$0.7 million for the three months ended March 31, 2021.

The net of proceeds and payments related to debt accounted for the difference,

providing approximately $0.3 million in the three months ended March 31, 2022, compared to approximately $0.6 million in the three months

ended March 31, 2021, and the net proceeds related to paycheck protection program of approximately $0.1 in the three months ended March

a) changes in accounts payable, accrued

liabilities, and customer deposits provided $838,300 in the first six months of 2022, compared to providing $19,200 in the first six

months of 2021, a net increase in cash provided of approximately $0.8 million, b) changes in accounts receivable used approximately $27,600

in the first six months of 2022, compared to using $160,100 in the first six months of 2021, a net increase in cash of approximately

$132,500, c) changes in contract liabilities used $176,600 in the first six months of 2022, compared to providing $292,400 in the first

six months of 2021, a net decrease in cash provided of approximately $0.5 million, d) changes in contract assets used $164,000 in the

first six months of 2022, compared to providing $6,800 in the first six months of 2021, a net increase in cash used of approximately

$0.2 million.

cash used by investing activities was $31,800 for the six months ended June 30, 2022, compared to providing $78,400 of cash for the six

months ended June 30, 2021.

The purchase of property and equipment was $31,800 for the six months ended June 30, 2022, and $3,000 for

the six months ended June 30, 2021.

The proceeds from sale of fixed assets totaled $81,400 for the six months ended June 30, 2021, while

$0 for the six months ended June 30, 2022.

cash provided by financing activities was approximately $0.3 million for the six months ended June 30, 2022, compared with providing

$0.9 million for the six months ended June 30, 2021.

The net of proceeds and payments related to debt accounted for the difference, providing

approximately $0.3 million in the six months ended June 30, 2022, compared to approximately $0.7 million in the six months ended June

30, 2021, and the net proceeds related to paycheck protection program of approximately $0.1 in the six months ended June 30, 2021.

Accounting Policies, Judgments and Estimates

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for recovery is remote.

An allowance for doubtful accounts of approximately $19,800 and $0 has been reserved as of March 31, 2022, and

An allowance for doubtful accounts of approximately $19,800 and $0 has been reserved as of June 30, 2022, and

December 31, 2021, respectively.

Company is exposed to credit risk in the normal course of business, primarily related to accounts receivable.

is exposed to credit risk in the normal course of business, primarily related to accounts receivable.

Our customers operate primarily

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and evaluates the financial condition of its customers and maintains an allowance for doubtful accounts.

As of March 31, 2022, and December

As of June 30, 2022, and December

31, 2021, we do not believe that we have significant credit risk.

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and timing of estimated future cash flows.

No impairments were determined as of March 31, 2022.

No impairments were determined as of June 30, 2022.

is recognized under FASB guidelines, which requires an evaluation of revenue arrangements with customers following a five-step approach:

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Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 2. Management’s Discussion and Analysis