Get Started for Free Contexxia identifies hard-to-find pieces of information in SEC filings. No more highlighters, no more redlining, no more poring over huge documents. Freedom Environmental Services, Inc. (1443818) 10-Q published on Sep 13, 2012 at 3:29 pm
Reporting Period: Sep 11, 2012
Revenues for the three and six months ended June 30, 2012 were $1,339,486 and $2,508,311 respectively, as compared to $1,566,224 and $2,956,729 for the three and six months ended June 30, 2011. This decrease was primarily attributable to several major projects that occurred in 2011 and similar projects did not reoccur along with dryer weather conditions which reduces the demand for services.
Cost of goods sold for the three and six months ended June 30, 2012 was $1,194,301 and $2,171,227 respectively, as compared to $953,447 and $1,894,468 for the three and six months ended June 30, 2011. This increase was due primarily to increased disposal costs.
Interest expense for the three and six months ended June 30, 2012 was $50,185 and $100,197 respectively, as compared to $75,322 and $107,115 for the three and six months ended June 30, 2011. The decrease in interest expense corresponds to payments of notes the company made in 2012.
Net loss for the three and six months ended June 30, 2012 was $389,049 and $779,193 respectively, as compared to $144,124 and $498,209 for the three months and six months ended June 30, 2011. The primary reason the losses increased was due to lower sales revenues in 2012 compared to 2011.
The Company has two material notes, one from an unrelated third party for approximately $418,000 and one from a traditional banking relationship, Reunion Bank for approximately $822,000. The Company is presently not in compliance with the debt coverage ratio loan covenant on the Reunion Bank debt. The Company is presently making timely monthly payments and is current with all payment requirements and Reunion has not demanded that the loan be repaid as a result of non-compliance with the debt covenant.