UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-K/A
(Amendment Number 1)
þ
ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the fiscal year ended December 31,
2014
¨
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the transition period from
to
Commission file number 000-55159
CES Synergies, Inc.
(Exact name of registrant as specified
in its charter)
Nevada |
|
460839941 |
(State or other jurisdiction of
incorporation or organization) |
|
(I.R.S. Employer
Identification No.) |
39646 Fig Street
P.O. Box 1299
Crystal Springs, FL 33524
(Address of principal executive offices,
including zip code)
813-783-1688
(Registrant’s telephone number,
including area code)
Securities registered pursuant to
Section 12(b) of the Act: None
Securities registered pursuant to
Section 12(g) of the Act: Common Stock, par value $0.001 per share
Indicate
by check mark whether the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. ¨ Yes
þ No
Indicate
by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act. ¨
Yes þ No
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.
þ
Yes ¨ No
Indicate
by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive
Data File required to be submitted and posted 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). þ
Yes ¨
No
Indicate
by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K is not contained herein, and will not be
contained, to the best of registrant’s knowledge, in definitive proxy or information statements incorporated by reference
in Part III of this Form 10-K or any amendment to this Form 10-K. ¨
Indicate by check mark whether the registrant
is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the
definitions of “large accelerated filer”, “accelerated filer”, and “smaller reporting company”
in Rule 12b-2 of the Exchange Act.
Large accelerated filer |
¨ |
Accelerated filer |
¨ |
Non-accelerated filer (Do not check if smaller reporting company) |
¨ |
Smaller reporting company |
þ |
Indicate
by check mark whether the registrant is a shell company (as defined by Rule 12b-2 of the Exchange Act). ¨
Yes þ No
As of June 30, 2014, the aggregate market
value of the issued and outstanding common stock held by non-affiliates of the registrant, based upon the last sales price of our
common stock of $0.24, was approximately $2,846,760. For purposes of the above statement only, all directors, executive officers
and 10% shareholders are assumed to be affiliates. This determination of executive officer and affiliate status is not
necessarily a conclusive determination for any other purpose.
Number of shares of the registrant’s
common stock outstanding as of March 17, 2015, was 46,730,500.
Documents incorporated by reference: None.
EXPLANATORY NOTE
CES Synergies, Inc. (the “Company”) is filing
this Amendment No. 1 (the “Amendment”) to its Annual Report on Form 10-K (“Form 10-K”) for the fiscal year
ended December 31, 2014, filed with the Securities and Exchange Commission (the “SEC”) on March 25, 2015, solely to
include a properly dated audit opinion. The Form 10-K had an audit opinion dated March 20, 2014. This Amendment has an audit opinion
dated March 25, 2015. For convenience, Part II, Item 8, Financial Statements, is being re-filed. There are no other changes to
the Form 10-K.
This Amendment also updates Part IV, Item 15, Exhibits of
the Form 10-K to include the filing of new Exhibits 31.1, 31.2, 32.1 and 32.2, certifications of our Chief Executive Officer and
Chief Financial Officer, pursuant to Rule 13a-14(a) and (b).
No other changes have been made to the Form 10-K other than
that described above. This Amendment does not reflect subsequent events occurring after the original filing date of the Form 10-K
or modify or update in any way disclosures made in the Form 10-K. Among other things, forward-looking statements made in the Form
10-K have not been revised to reflect events that occurred or facts that became known to us after filing of the Form 10-K, and
such forward-looking statements should be read in their historical context. Furthermore, this Amendment should be read in conjunction
with the Form 10-K and with our filings with the SEC subsequent to the Form 10-K.
PART I
ITEM 8. FINANCIAL STATEMENTS
John Scrudato CPA
7 Valley View Drive
Califon, New Jersey 07830
908-534-0008
REPORT OF INDEPENDENT REGISTERED
PUBLIC ACCOUNTING FIRM
To the Board of Directors of
CES Synergies, Inc.
We have audited the accompanying balance
sheet of CES Synergies, Inc. and its subsidiaries (“the Company”) as of December 31, 2014 and 2013, and the related
statements of operations, stockholders’ equity, and cash flows for the years ended. These financial statements are the responsibility
of the Company’s management. Our responsibility is to express an opinion on these financial statements based on our audit.
We conducted our audit in accordance
with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform
the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. The Company
is not required to have, nor were we engaged to perform, an audit of its internal controls over financial reporting. Our audit
included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate
in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control
over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates
made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable
basis for our opinion.
In our opinion based on our audit, the
financial statements referred to above present fairly, in all material respects, the financial position of CES Synergies, Inc.
and its subsidiaries as of December 31, 2014 and 2013, and the results of its operations, stockholders’ equity, and its cash
flows for the years then ended, in conformity with accounting principles generally accepted in the United States.
/s/ John Scrudato CPA
Califon, New Jersey
March 25, 2015
CONSOLIDATED STATEMENT OF OPERATIONS
| |
Years ended December 31, | |
| |
2014 | | |
2013 | |
Revenues | |
$ | 20,846,119 | | |
$ | 15,537,875 | |
Cost of sales | |
| 16,142,507 | | |
| 11,852,022 | |
Gross profit | |
| 4,703,612 | | |
| 3,685,853 | |
General & administrative expenses | |
| 5,020,556 | | |
| 3,660,012 | |
Net operating profit/ (loss) | |
| (316,944 | ) | |
| 25,841 | |
Other expenses, net | |
| (104,728 | ) | |
| (186,587 | ) |
Net profit/(loss) before income taxes | |
$ | (421,672 | ) | |
$ | (160,746 | ) |
Income taxes | |
| (81,339 | ) | |
| - | |
Net profit/(loss) after income taxes | |
| (503,011 | ) | |
| (160,746 | ) |
| |
| | | |
| | |
Earnings per share | |
| | | |
| | |
Basic and diluted | |
$ | (0.01 | ) | |
$ | (0.003 | ) |
| |
| | | |
| | |
Shares used in computing earnings per share | |
| | | |
| | |
Basic and diluted | |
| 46,730,500 | | |
| 46,525,000 | |
Cash distributions declared per common share | |
$ | - | | |
$ | 0.02 | |
See accompanying Notes to Consolidated
Financial Statements
CONSOLIDATED BALANCE SHEET
| |
December 31, 2014 | | |
December 31, 2013 | |
ASSETS |
Current assets | |
| | |
| |
Cash | |
$ | 149,455 | | |
$ | 250,359 | |
Advances to employees | |
| 14,006 | | |
| 20,223 | |
Contracts receivable (net of allow. for bad debt) | |
| 6,365,274 | | |
| 3,965,709 | |
Inventory | |
| 152,772 | | |
| 153,990 | |
Cost and estimated earnings in excess of billings on uncompleted contracts | |
| 229,437 | | |
| 809,548 | |
Total current assets | |
| 6,910,944 | | |
| 5,199,829 | |
Property and equipment, net | |
| 2,117,217 | | |
| 2,160,818 | |
Goodwill | |
| 1,446,855 | | |
| 1,446,855 | |
Other assets | |
| 6,531 | | |
| 29,505 | |
TOTAL ASSETS | |
$ | 10,481,547 | | |
$ | 8,837,007 | |
| |
| | | |
| | |
LIABILITIES AND STOCKHOLDERS' EQUITY | |
| | | |
| | |
Current liabilities | |
| | | |
| | |
Accounts payable | |
$ | 2,570,259 | | |
$ | 1,260,709 | |
Accrued payroll | |
| 82,391 | | |
| 123,356 | |
Billings in excess of costs and estimated earnings on uncompleted contracts | |
| 598,645 | | |
| 518,612 | |
Notes payable | |
| 1,750,300 | | |
| - | |
Current portion long-term debt | |
| 595,757 | | |
| 472,372 | |
Total current liabilities | |
| 5,597,352 | | |
| 2,375,049 | |
Long-term debt, net of current portion | |
| 3,337,166 | | |
| 4,731,468 | |
Total long-term liabilities | |
| 3,337,166 | | |
| 4,731,468 | |
Stockholders' equity | |
| | | |
| | |
Common stock, authorized: $0.001 par value, 250,000,000 shares, at December 31, 2014; $0.001 par value, 75,000,000 shares, at December 31, 2013 issued: 46,730,500 shares, at December 31, 2014; 46,525,000 shares, at December 31, 2013 | |
| 46,730 | | |
| 46,525 | |
Treasury stock, 80 shares, at cost | |
| - | | |
| (129,356 | ) |
Additional paid in capital | |
| 1,281,048 | | |
| 1,084,058 | |
Retained earnings | |
| 219,251 | | |
| 722,263 | |
Total stockholders' equity | |
| 1,547,029 | | |
| 1,730,490 | |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | |
$ | 10,481,547 | | |
$ | 8,837,007 | |
See accompanying Notes to Consolidated
Financial Statements
CONSOLIDATED STATEMENT OF STOCKHOLDERS’
EQUITY
| |
Common Stock | | |
Treasury Stock | | |
Additional paid in | | |
Accumulated | | |
| |
| |
Shares | | |
Amount | | |
Shares | | |
Amount | | |
Capital | | |
surplus | | |
Total | |
Balance at December 31, 2011 | |
| 160 | | |
| 160 | | |
| 80 | | |
| (129,356 | ) | |
| 1,130,424 | | |
| 2,560,467 | | |
| 3,561,695 | |
Distributions | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | | |
| (1,136,877 | ) | |
| (1,136,877 | ) |
Net income for the year ended December 31, 2012 | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | | |
| 389,083 | | |
| 389,083 | |
Balance at December 31, 2012 | |
| 160 | | |
| 160 | | |
| 80 | | |
| (129,356 | ) | |
| 1,130,424 | | |
| 1,812,673 | | |
| 2,813,901 | |
Distributions | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | | |
| (929,663 | ) | |
| (929,663 | ) |
Adjustments to common stock and additional paid-in capital | |
| 39,524,840 | | |
| 39,365 | | |
| - | | |
| - | | |
| (39,365 | ) | |
| - | | |
| - | |
Issuance of common stock for employment and services | |
| 7,000,000 | | |
| 7,000 | | |
| - | | |
| - | | |
| | | |
| - | | |
| 7,000 | |
Net income/(loss) for the year ended December 31, 2013 | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | | |
| (160,744 | ) | |
| (160,744 | ) |
Balance at December 31, 2013 | |
| 46,525,000 | | |
$ | 46,525 | | |
| 80 | | |
$ | (129,356 | ) | |
$ | 1,091,058 | | |
$ | 722,262 | | |
$ | 1,730,490 | |
Adjustments to common stock and additional paid-in capital | |
| - | | |
| - | | |
| (80 | ) | |
| 129,356 | | |
| (129,356 | ) | |
| - | | |
| - | |
Issuance of common stock for employment and services | |
| 93,000 | | |
| 93 | | |
| - | | |
| - | | |
| 94,457 | | |
| - | | |
| 94,550 | |
Issuance of common stock (sold) | |
| 112,500 | | |
| 112 | | |
| - | | |
| - | | |
| 224,888 | | |
| - | | |
| 225,000 | |
Net income/(loss) for the year ended December 31, 2014 | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | | |
| (503,011 | ) | |
| (503,011 | ) |
Balance at December 31, 2014 | |
| 46,730,500 | | |
$ | 46,730 | | |
| - | | |
$ | - | | |
$ | 1,281,048 | | |
$ | 219,251 | | |
$ | 1,547,029 | |
See accompanying Notes to Consolidated
Financial Statements
CONSOLIDATED STATEMENT OF CASH FLOWS
| |
Years ended December 31, | |
| |
2014 | | |
2013 | |
Cash flows from operating activities | |
| | |
| |
Net income (loss) from continuing operations | |
$ | (503,011 | ) | |
$ | (160,746 | ) |
Adjustments to reconcile net loss to net cash used by operating activities: | |
| | | |
| | |
Depreciation | |
| 578,427 | | |
| 623,726 | |
(Gain) Loss on Asset Disposal | |
| (400 | ) | |
| (27,000 | ) |
(Increase) decrease in contracts receivable | |
| (2,399,565 | ) | |
| (1,072,251 | ) |
(Increase) decrease in inventory | |
| 1,218 | | |
| (18,848 | ) |
(Increase) decrease in other assets | |
| 29,191 | | |
| 2,738 | |
(Increase) decrease in estimated earnings in excess of billings | |
| 580,111 | | |
| (146,357 | ) |
Increase (decrease) in accounts payable and accrued expenses | |
| 1,268,585 | | |
| 704,341 | |
Increase (decrease) in billings in excess of costs and estimated earnings | |
| 80,033 | | |
| 479,875 | |
Net cash provided by (used in) operating activities | |
| (365,411 | ) | |
| 385,478 | |
Cash flows from investing activities | |
| | | |
| | |
Purchase property and equipment | |
| (534,826 | ) | |
| (639,156 | ) |
Proceeds from disposal of equipment | |
| 400 | | |
| 27,000 | |
Net cash provided by (used in) investing activities | |
| (534,426 | ) | |
| (612,156 | ) |
Cash flows from financing activities | |
| | | |
| | |
Payments on notes payable | |
| (4,681,071 | ) | |
| (534,967 | ) |
Net proceeds from borrowings | |
| 5,160,454 | | |
| 1,802,225 | |
Adjustments to common stock and additional paid-in capital | |
| 319,550 | | |
| 7,000 | |
Distributions | |
| - | | |
| (929,663 | ) |
Net cash provided by (used in) financing activities | |
| 798,933 | | |
| 344,595 | |
Net increase (decrease) in cash | |
| (100,904 | ) | |
| 117,917 | |
Cash, beginning of period | |
| 250,359 | | |
| 132,442 | |
Cash, end of period | |
$ | 149,455 | | |
$ | 250,359 | |
See accompanying Notes to Consolidated
Financial Statements
NOTE 1 - Company Background
CES Synergies,
Inc. (the “Company”) is a Nevada corporation formed on April 26, 2010. The
Company is the parent company of Cross Environmental Services, Inc. (“CES”) which was incorporated in 1988 in the state
of Florida. The Company acquired CES in a reverse merger transaction that closed on November 1, 2013, and CES is deemed the accounting
acquirer under accounting rules (see Note 14). The Company
is an asbestos and
lead abatement contracting
firm specializing in the
removal of asbestos
and lead from
buildings and other
structures, and demolition
of structures. The Company’s services include
removal of asbestos and
lead, construction, installation, and repair of ceilings
and insulation systems and demolition.
Most of the Company’s jobs are located within
the state of Florida, but the Company
accepts and performs jobs throughout
the southeastern United States.
NOTE 2 - Summary of Significant Accounting Policies
This summary of significant accounting
policies of the Company is presented to assist in understanding the Company’s financial statements.
The Company follows the accrual basis
of accounting in accordance with accounting principles generally accepted in the United States of America (“US GAAP”)
and has adopted a year-end of December 31.
The preparation of financial statements
in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and
liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts
of revenues and expenses during the reporting period. Actual results could differ from those estimates.
Management further acknowledges that
it is solely responsible for adopting sound accounting practices consistently applied, establishing and maintaining a system of
internal accounting control and preventing and detecting fraud. The Company’s system of internal accounting control is designed
to assure, among other items, that 1) recorded transactions are valid; 2) valid transactions are recorded; and 3) transactions
are recorded in the proper period in a timely manner to produce financial statements which present fairly the financial condition,
results of operations and cash flows of the Company for the respective periods being presented.
Basis of Presentation
The Consolidated Financial Statements
include the accounts of the Company and its wholly-owned subsidiaries. These include
the accounts of
CES, and its wholly
owned subsidiaries, Cross
Demolition, Inc., Cross
Insulation, Inc., Cross
Remediation, Inc., Cross FRP,
Inc., Triple J Trucking,
Inc., and Tenpoint
Trucking, Inc. All significant intercompany account balances, transactions,
profits and losses have been eliminated.
Use of Estimates
The preparation of financial statements
in conformity with US GAAP requires management to make estimates and assumptions that affect reported amounts of assets and liabilities,
disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and
expenses during the reporting period. Actual results could differ from those estimates.
Fair Value of Financial Instruments
For certain financial instruments, including
accounts receivable, accounts payable, accrued expenses, interest payable, advances payable and notes payable, the carrying amounts
approximate fair value due to their relatively short maturities.
The Company has adopted ASC 820-10,
“Fair Value Measurements and Disclosures.” ASC 820-10 defines fair value, and establishes a three-level valuation
hierarchy for disclosures of fair value measurement that enhances disclosure requirements for fair value measures. The carrying
amounts reported in the consolidated balance sheets for receivables and current liabilities each qualify as financial instruments
and are a reasonable estimate of their fair values because of the short period of time between the origination of such instruments
and their expected realization and their current market rate of interest. The three levels of valuation hierarchy are defined as
follows:
|
● |
Level 1 inputs to the valuation methodology are quoted prices for identical assets or liabilities in active markets. |
|
● |
Level 2 inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument. |
|
● |
Level 3 inputs to the valuation methodology are unobservable and significant to the fair value measurement. |
The Company did not identify any non-recurring
assets and liabilities that are required to be presented in the balance sheets at fair value in accordance with ASC 815.
In February 2007, the FASB issued ASC
825-10 “Financial Instruments.” ASC 825-10 permits entities to choose to measure many financial assets and financial
liabilities at fair value. Unrealized gains and losses on items for which the fair value option has been elected are reported in
earnings. ASC 825-10 is effective as of the beginning of an entity’s first fiscal year that begins after November 15, 2007.
The carrying amounts of cash and current
liabilities approximate fair value due to the short maturity of these items. These fair value estimates are subjective in nature
and involve uncertainties and matters of significant judgment, and, therefore, cannot be determined with precision. Changes in
assumptions could significantly affect these estimates. The Company does not hold or issue financial instruments for trading purposes,
nor does it utilize derivative instruments in the management of foreign exchange, commodity price, or interest rate market risks.
Revenue and Cost Recognition
The
Company follows ASC 605-35 "Revenue Recognition: Construction type contracts"
and recognizes revenues from
fixed-price and modified
fixed-price construction contracts
on the percentage-of-completion method,
measured by the
percentage of cost
incurred to date to estimated total cost
for each contract.
This method is used
because management considers total cost to
be the best available measure of
progress on the contracts.
Contract
costs include all
direct material and
labor costs and
those indirect costs
related to contract performance,
such as indirect labor, supplies,
tools, repairs, and depreciation. Selling,
general, and administrative costs are
charged to expenses as incurred. Provisions for estimated losses on uncompleted
contracts, if any, are
made in the period in which such losses
are determined. Changes in job performance,
job conditions, and estimated profitability
may result in revisions to costs
and income which are recognized in
the period in which the revisions
are determined.
The
asset, "Costs and estimated
earnings in excess
of billings on
uncompleted contracts," represents
revenues recognized in excess
of amounts billed.
The
liability, "Billings in
excess of costs
and estimated earnings
on uncompleted contracts,"
represents billings in excess
of revenues recognized.
Contract retentions
are included in
contracts receivable.
Cash and Cash Equivalents
For
purposes of reporting
cash flows, the
Company considers cash
and cash equivalents
to be all highly
liquid deposits with
maturities of three months or less.
Cash equivalents are carried at cost, which approximates market value.
Concentrations of Credit Risk
The
Company maintains cash
balances at Centennial Bank located
in Central Florida. The
cash accounts are insured
by the Federal
Deposit Insurance Corporation up to
$250,000. At December 31, 2014 and 2013, the Company’s uninsured cash balances for those accounts were
$0.
Special Purpose Entities
The Company does not have any off-balance sheet financing
activities.
Contracts Receivable
Contracts
receivable are recorded
when invoices are
issued and presented
in the balance
sheet net of
the allowance for doubtful
accounts. Contract receivables are written off when
they are determined to be uncollectible. The allowance for doubtful
accounts is estimated based on the
Company's historical average percentage of bad debts
in relation to
its revenue.
Inventory, Net
Inventories
consist primarily of
job materials and
supplies and are
priced at the
lower of cost
(first-in, first-out) or market.
Property, Plant and Equipment
Property, plant and equipment are recorded
at cost less accumulated depreciation. Expenditures for major additions and improvements are capitalized. As property and equipment
are sold or retired, the applicable cost and accumulated depreciation are removed from the accounts and any resulting gain or loss
thereon is recognized as operating expenses.
Depreciation is calculated using the
straight-line method over the estimated useful lives or, in the case of leasehold improvements, the term of the related lease,
including renewal periods, if shorter. Estimated useful lives are as follows:
The Company reviews property, plant
and equipment and all amortizable intangible assets for impairment whenever events or changes in circumstances indicate that the
carrying amount of these assets may not be recoverable. Recoverability is based on estimated undiscounted cash flows. Measurement
of the impairment loss, if any, is based on the difference between the carrying value and fair value.
Impairment of Long-Lived Assets and Amortizable Intangible
Assets
The Company follows ASC 360-10, “Property,
Plant, and Equipment,” which established a “primary asset” approach to determine the cash flow estimation
period for a group of assets and liabilities that represents the unit of accounting for a long-lived asset to be held and used.
Long-lived assets to be held and used are reviewed for impairment whenever events or changes in circumstances indicate that the
carrying amount of an asset may not be recoverable. The carrying amount of a long-lived asset is not recoverable if it exceeds
the sum of the undiscounted cash flows expected to result from the use and eventual disposition of the asset. Long-lived assets
to be disposed of are reported at the lower of carrying amount or fair value less cost to sell. Through December 31, 2014, the
Company had not experienced impairment losses on its long-lived assets.
Intangible Assets - Goodwill
Cost
of investment in
purchased company assets
(Simpson & Associates,
Inc.) in excess
of the underlying fair value
of net assets at date of acquisition
(March 2001) is recorded as goodwill on the balance sheet. The amount of $1,396,855 was acquired
in 2001 and an additional $50,000 was reclassified
as goodwill in 2002. Goodwill is not amortized, but instead is assessed for impairment
at least annually and upon the occurrence of certain triggering events or substantive changes in circumstances that indicate that
the fair value of goodwill may be impaired. Measurement of the impairment loss, if any, is based on the difference between the
carrying value and fair value of the reporting unit. The goodwill impairment test follows a two-step process. In the first step,
the fair value of a reporting unit is compared to its carrying value. If the carrying value of a reporting unit exceeds its fair
value, the second step of the impairment test is performed for purposes of measuring the impairment. In the second step, the fair
value of the reporting unit is allocated to all of the assets and liabilities of the reporting unit to determine an implied goodwill
value. If the carrying amount of the reporting unit’s goodwill exceeds the implied fair value of goodwill, an impairment
loss will be recognized in an amount equal to that excess. There were no material impairments to the carrying value of long-lived
assets and intangible assets subject to amortization during the years ended December 31, 2014 and 2013.
Business Segments
ASC 280, “Segment Reporting”
requires use of the “management approach” model for segment reporting. The management approach model is based
on the way a company’s management organizes segments within the company for making operating decisions and assessing performance.
The Company determined it has three operating segments as of December 31, 2014 and December 31, 2013.
Income Taxes
Tax expense comprises current and deferred
tax. Current tax and deferred tax is recognized in profit or loss except to the extent that it relates to a business combination,
or items recognized directly in equity or in other comprehensive income. Current tax is the expected tax payable or receivable
on the taxable income or loss for the year, using tax rates enacted or substantively enacted at the reporting date, and any adjustment
to tax payable in respect of previous years. Current tax payable also includes any tax liability arising from the declaration of
dividends. Deferred tax would be recognized in respect of temporary differences between the carrying amounts of assets and liabilities
for financial reporting purposes and the amounts used for taxation purposes. No deferred tax is recognized since the difference
in carrying amount is not significant.
Net Income (Loss) Per Share
The Company computes net income (loss)
per share in accordance with ASC 260-10, “Earnings Per Share.” The basic net income (loss) per common share
is computed by dividing the net income (loss) by the weighted average number of common shares outstanding. Diluted net income (loss)
per share gives effect to all dilutive potential common shares outstanding during the period using the “as if converted”
basis. For the years ended December 31, 2014 and 2013, there were no potential dilutive securities.
Common Stock
The Company currently has only one class
of common stock. Each share of common stock is entitled to one vote. The authorized number of shares of common stock of the Company
at December 31, 2014 was 250,000,000 and at December 31, 2013 was 75,000,000 shares, in each case with a nominal par value per
share of $0.001. Authorized shares that have been issued and fully paid amounted to 46,730,500 common shares at December 31, 2014
compared to 46,525,000 common shares at December 31, 2013.
Comprehensive Income
Comprehensive income represents net
income plus the change in equity of a business enterprise resulting from transactions and circumstances from non-owner sources.
The Company’s comprehensive income was equal to net income for the periods ended December 31, 2014 and 2013.
NOTE 3 – Recent Accounting Pronouncements
No. 2012-02, July 2012, Intangibles—Goodwill
and Other (Topic 350): In accordance with the amendments in this update, an entity has the option first to assess qualitative factors
to determine whether the existence of events and circumstances indicates that it is more likely than not that the indefinite-lived
intangible asset is impaired. If, after assessing the totality of events and circumstances, an entity concludes that it is not
more likely than not that the indefinite-lived intangible asset is impaired, then the entity is not required to take further action.
However, if an entity concludes otherwise, then it is required to determine the fair value of the indefinite-lived intangible asset
and perform the quantitative impairment test by comparing the fair value with the carrying amount in accordance with Subtopic 350-30.
No. 2012-06, October 2012, Business
Combinations (Topic 805): When a reporting entity recognizes an indemnification asset (in accordance with Subtopic 805-20) as a
result of a government-assisted acquisition of a financial institution and subsequently a change in the cash flows expected to
be collected on the indemnification asset occurs (as a result of a change in cash flows expected to be collected on the assets
subject to indemnification), the reporting entity should subsequently account for the change in the measurement of the indemnification
asset on the same basis as the change in the assets subject to indemnification. Any amortization of changes in value should be
limited to the contractual term of the indemnification agreement (that is, the lesser of the term of the indemnification agreement
and the remaining life of the indemnified assets).
No. 2013-01, January 2013, Balance Sheet
(Topic 210): The amendments in this Update affect entities that have derivatives accounted for in accordance with Topic 815, including
bifurcated embedded derivatives, repurchase agreements and reverse repurchase agreements, and securities borrowing and securities
lending transactions that are either offset in accordance with Section 210-20-45 or Section 815-10-45 or subject to an enforceable
master netting arrangement or similar agreement. Entities with other types of financial assets and financial liabilities subject
to a master netting arrangement or similar agreement also are affected because these amendments make them no longer subject to
the disclosure requirements in Update 2011-11.
NOTE 4 - Contracts Receivable
Contracts Receivable consist of at:
| |
December 31, 2014 | | |
December 31, 2013 | |
Billed | |
| | |
| |
Completed Contracts | |
$ | 4,146,946 | | |
$ | 2,419,534 | |
Contracts in Progress | |
| 1,652,910 | | |
| 936,929 | |
Retained | |
| 766,418 | | |
| 810,246 | |
Allowance for Bad Debts | |
| (201,000 | ) | |
| (201,000 | ) |
Total | |
$ | 6,365,274 | | |
$ | 3,965,709 | |
NOTE 5 - Property, Plant and Equipment
Property, plant and equipment and related accumulated depreciation
consist of the following:
| |
December 31, 2014 | | |
December 31, 2013 | |
| |
| | |
| |
Machinery and Equipment | |
$ | 3,847,408 | | |
$ | 3,569,815 | |
Office Furniture and Equipment | |
| 172,635 | | |
| 91,676 | |
Transportation and Earth Moving Equipment | |
| 8,717,743 | | |
| 8,548,243 | |
Leasehold Improvements | |
| 30,189 | | |
| 24,000 | |
Property, Plant and Equipment Gross | |
| 12,767,975 | | |
| 12,233,734 | |
Less: Accumulated Depreciation | |
| (10,650,758 | ) | |
| (10,072,916 | ) |
Property, Plant and Equipment Net | |
$ | 2,117,217 | | |
$ | 2,160,818 | |
Depreciation expense for the twelve
months ended December 31, 2014 and 2013 was $578,427 and $623,726, respectively.
NOTE 6
- Costs and
Estimated Earnings on Contracts
For the year ended December 31, 2014:
| |
Revenues Earned | | |
Cost of Revenues | | |
Gross Profit | |
| |
| | |
| | |
| |
Revenue on completed contracts | |
$ | 14,877,686 | | |
$ | 12,028.147 | | |
$ | 2,849,539 | |
Revenue on uncompleted contracts | |
| 5,968,434 | | |
| 4,114,360 | | |
| 1,854,074 | |
Total for 12 months ended 12/31/14 | |
$ | 20,846,120 | | |
$ | 16,142,507 | | |
$ | 4,703,613 | |
| |
As of Dec 31, 2014: | |
Costs incurred on uncompleted contracts | |
| 4,482,275 | |
Estimated earnings on uncompleted contracts | |
| 1,941,493 | |
Revenues earned on uncompleted contracts | |
| 6,423,768 | |
Billings to date | |
| 6,792,976 | |
Total Net Amount | |
$ | (369,208 | ) |
| |
| | |
Amount shown as cost and estimated earnings in excess of billings on uncompleted contracts | |
$ | 229,437 | |
Amount shown as billings in excess of costs and estimated earnings on uncompleted contracts | |
| (598,645 | ) |
| |
| | |
Total Net Amount | |
$ | (369,208 | ) |
For the twelve months ended December 31, 2013:
| |
Revenues Earned | | |
Cost of Revenues | | |
Gross Profit | |
| |
| | |
| | |
| |
Revenue on completed contracts | |
$ | 12,444,308 | | |
$ | 9,591,360 | | |
$ | 2,852,948 | |
Revenue on uncompleted contracts | |
| 3,035,535 | | |
| 2,227,000 | | |
| 808,535 | |
Total for 12 months ended 12/31/13 | |
$ | 15,479,843 | | |
$ | 11,818,360 | | |
$ | 3,661,483 | |
| |
As of Dec 31, 2013: | |
Costs incurred on uncompleted contracts | |
$ | 2,969,074 | |
Estimated earnings on uncompleted contracts | |
| 1,319,248 | |
Revenues earned on uncompleted contracts | |
| 4,288,322 | |
Billings to date | |
| 3,997,387 | |
Total Net Amount | |
$ | 290,935 | |
| |
| | |
Amount shown as cost and estimated earnings in excess of billings on uncompleted contracts | |
$ | 809,548 | |
Amount shown as billings in excess of costs and estimated earnings on uncompleted contracts | |
| (518,613 | ) |
| |
| | |
Total Net Amount | |
$ | 290,935 | |
NOTE 7
– Long-Term Debt
Long-term debt consists of the following at December 31,
2014 and 2013:
| |
12/31/2014 | | |
12/31/2013 | |
| |
| | |
| |
Demand
loan from Shareholder, Clyde Biston, Payable in monthly payments of $4,632, interest rate of 4.25%. | |
$ | 273,273 | | |
$ | 118,130 | |
| |
| | | |
| | |
Line
of credit, Centennial Bank, Dade City, FL variable interest of 1.25% over prime, current rate 3.25%, secured by land,
improvements, and accounts receivable. Line of credit matures April 30, 2015. | |
$ | 1,750,300 | | |
$ | - | |
| |
| | | |
| | |
Installment
loan from shareholder, Clyde Biston. Payable in monthly payments of $23,994, interest rate of 6.15%. | |
$ | 2,721,450 | | |
$ | - | |
| |
| | | |
| | |
Line
of credit, Centennial Bank, Dade City, FL, variable interest of 1.25% over prime, year-end rate 3.25%, secured by
land, improvements, and accounts receivable. Line of credit closed out April 30, 2014. | |
$ | - | | |
$ | 3,983,486 | |
| |
| | | |
| | |
Various
installment loans payable in monthly payments, interest rates ranging from 0% to 9.5%, secured by various equipment,
vehicles, and property. | |
$ | 938,200 | | |
$ | 1,102,224 | |
Total | |
| 5,683,223 | | |
| 5,203,840 | |
Less:
Current portion | |
| (2,346,057 | ) | |
| (472,372 | ) |
Long-term
debt, less current portion | |
$ | 3,337,166 | | |
$ | 4,731,468 | |
NOTE 8
– Commitments and Contingencies
Principal payments on long-term debt are due as follows:
Year ending December 31, | |
| |
2015 | |
$ | 2,346,057 | |
2016 | |
| 549,004 | |
2017 | |
| 341,474 | |
2018 | |
| 231,751 | |
2019+ | |
| 2,214,937 | |
| |
$ | 5,683,223 | |
Contingencies
None.
NOTE 9 – Earnings per Share
| |
12/31/2014 | | |
12/31/2013 | |
| |
| | |
| |
Net
Income/ (Loss) | |
$ | (503,011 | ) | |
$ | (160,746 | ) |
Weighted-average common shares outstanding | |
| | | |
| | |
Basic: | |
| 46,730,500 | | |
| 46,525,000 | |
| |
| | | |
| | |
Weighted-average common stock | |
| | | |
| | |
Equivalents | |
| - | | |
| - | |
Stock Options | |
| - | | |
| - | |
Warrants | |
| - | | |
| - | |
Convertible Notes | |
| - | | |
| - | |
| |
| | | |
| | |
Weighted-average common shares outstanding | |
| | | |
| | |
Diluted | |
| 46,641,884 | | |
| 46,525,000 | |
Earnings/(loss) per common shares outstanding | |
| | | |
| | |
Basic and Diluted | |
$ | (0.0108 | ) | |
$ | (0.003 | ) |
NOTE 10
- Operating Lease
Agreements
In the
past, the Company
rented certain equipment/office space
under month to
month operating lease agreements.
Lease expenses incurred as of December 31,
2014 and 2013 under such
agreements were $378,485,
and $131,424, respectively.
NOTE 11
- Related Party
Transactions
For the purposes of these financial
statements, parties are considered to be related if one party has the ability to control the other party or exercise significant
influence over the other party in making financial or operational decisions. In considering each possible related party relationship,
attention is directed to the substance of the relationship, not merely the legal form.
Related parties may enter into transactions
which unrelated parties might not, and transactions between related parties may not be effected on the same terms, conditions and
amounts as transactions between unrelated parties. Our President and Chief Executive Officer owns a majority of our shares, meaning
he can exert significant influence over corporate decisions and strategy. Related party transactions for the period include the
following:
Leased
Facilities
The
Company operates primarily out of
facilities owned by
the majority shareholder
of the Company. Beginning
in June 1995, the
Company was allowed
to use the facilities rent-free. As of November 1, 2013, the Company entered
into a lease agreement with the shareholder for rental of the facilities. Rental expenses incurred for the twelve months ended
December 31, 2014 under the lease agreement for the shareholder-owned facilities were $210,222.
NOTE 12
- 401K Salary
Deferral Plan
The
Company has established a
deferred benefit plan
for office and
managerial staff with
one year or more
of service. The
plan allows employees
to contribute through salary withholding. The
Company may match the contribution
up to 3% of the
gross wages of the employee. Amounts contributed
by the Company for the twelve months ended December 31, 2014 and 2013 are
$0 and $0, respectively.
NOTE 13 – Income Tax Provisions
Management of the Company considers
the likelihood of changes by tax authorities in its filed income tax returns and recognizes a liability for or discloses potential
significant changes that management believes are more likely than not to occur upon examination by tax authorities. Management
has not identified any uncertain tax positions in filed income tax returns that require recognition or disclosure in the accompanying
financial statements. The Company’s income tax returns for the past three years are subject to examination by tax authorities,
and may change upon examination.
For financial reporting purposes, income before income taxes
includes the following components:
| |
2014 | | |
2013 | |
United States | |
$ | (503,011 | ) | |
$ | (153,746 | ) |
Foreign | |
| - | | |
| - | |
Total | |
$ | (503,011 | ) | |
$ | (153,746 | ) |
The expense(benefit) for income taxes consists of: | |
| | |
| |
| |
| | |
| |
Current: | |
2014 | | |
2013 | |
Federal | |
$ | 69,025 | | |
$ | - | |
State | |
| 12,314 | | |
| - | |
Foreign | |
| - | | |
| - | |
Total | |
| 81,339 | | |
$ | - | |
Deferred and other: | |
| | | |
| | |
Federal | |
$ | - | | |
$ | - | |
State | |
| - | | |
| - | |
Foreign | |
| - | | |
| - | |
| |
| | | |
| | |
Total tax expense | |
$ | 81,339 | | |
$ | - | |
NOTE 14 – Reverse Acquisition
On November 1, 2013, CES entered into
an Agreement and Plan of Merger (the “Merger Agreement”), with CES Acquisitions, Inc. (“Subsidiary”), and
CES Synergies, Inc., a shell company that traded on the OTC bulletin board. Pursuant to the Merger Agreement, the Subsidiary merged
into CES, such that CES became a wholly-owned subsidiary of the Company (the “Merger”); and the Company issued 35,000,000
shares of the Company’s common stock to the shareholders of CES (the “Acquisition Shares”), representing approximately
75.2% of the Company’s aggregate issued and outstanding common stock following the closing of the Merger Agreement. The share
exchange is being accounted for as a recapitalization, and not as a business combination under the scope of FASB ASC Topic 805.
CES is the acquirer for accounting purposes and CES Synergies, Inc., is the acquired company. Accordingly, CES’s subchapter
S corporate status was terminated on November 1, 2013.
NOTE 15 – Subsequent Events
The Company has performed an evaluation
of subsequent events through, March 3, 2015, the date the accompanying financial statements were issued and did not identify any
material subsequent transactions that require disclosure.
NOTE 16 - Segment Information
The accounting standards for reporting
information about operating segments define operating segments as components of an enterprise for which separate financial information
is available that is evaluated regularly by the chief operating decision maker in deciding how to allocate resources and in assessing
performance. The Company’s chief operating decision maker is the Chief Executive Officer. The Company is organized by line
of business. While the Chief Executive Officer evaluates results in a number of different ways, the line of business management
structure is the primary basis for which the allocation of resources and financial results are assessed. Under the aforementioned
criteria, the Company operates in three operating and reporting segments: remediation, demolition and insulation.
Remediation is one segment of the Company
that derives its income from mold remediation and abatement services for a broad range of environments. Demolition offers full
scale commercial demolition and wrecking down to interior and selective demolition and strip down services. Our third segment,
Insulation, derives its revenue from re-insulation and insulation of new and remodeling projects.
The information provided below is obtained
from internal information that is provided to the Company’s chief operating decision maker for the purpose of corporate management.
The Company uses operating income (loss) to measure segment performance as recorded below:
| |
Years ended December 31, | |
| |
2014 | | |
2013 | |
Remediation Segment | |
| | |
| |
| |
| | |
| |
Revenue | |
$ | 9,976,891 | | |
$ | 7,964,558 | |
Cost of Revenues | |
| 7,073,954 | | |
| 6,052,171 | |
Gross Profit | |
| 2,902,937 | | |
| 1,912,387 | |
| |
| | | |
| | |
General & Administrative Expense | |
| 2,710,398 | | |
| 2,015,969 | |
Other (Income)/Expense | |
| 7,308 | | |
| (3,825 | ) |
| |
| | | |
| | |
Net Income (Loss) from Segment | |
$ | 185,231 | | |
$ | (99,757 | ) |
| |
Years ended December 31, | |
| |
2014 | | |
2013 | |
Demolition Segment | |
| | |
| |
| |
| | |
| |
Revenue | |
$ | 10,370,300 | | |
$ | 6,764,215 | |
Cost of Revenues | |
| 8,749,506 | | |
| 5,217,714 | |
Gross Profit | |
| 1,620,794 | | |
| 1,546,501 | |
| |
| | | |
| | |
General & Administrative Expense | |
| 2,213,444 | | |
| 1,571,123 | |
Other (Income)/Expense | |
| 16,248 | | |
| (24,762 | ) |
| |
| | | |
| | |
Net Income (Loss) from Segment | |
$ | (608,898 | ) | |
$ | (49,384 | ) |
| |
Years ended December 31, | |
| |
2014 | | |
2013 | |
Insulation Segment | |
| | |
| |
| |
| | |
| |
Revenue | |
$ | 553,389 | | |
$ | 743,467 | |
Cost of Revenues | |
| 463,973 | | |
| 594,311 | |
Gross Profit | |
| 89,416 | | |
| 149,156 | |
| |
| | | |
| | |
General & Administrative Expense | |
| 169,630 | | |
| 155,404 | |
Other (Income)/Expense | |
| (870 | ) | |
| (1,643 | ) |
| |
| | | |
| | |
Net Income from Segment | |
$ | (79,344 | ) | |
$ | (4,605 | ) |
ITEM 15. EXHIBITS
Exhibit Number |
|
Description |
31.1 |
|
Certification of principal executive officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. |
31.2 |
|
Certification of principal financial officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. |
32.1 |
|
Certification of principal executive officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. |
32.2 |
|
Certification of principal financial officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. |
SIGNATURES
Pursuant to the requirements
of Section 13 or 15(d) 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.
|
CES SYNERGIES, INC. |
|
|
|
Dated: September 11, 2015 |
By: |
/s/ John Tostanoski |
|
|
Name: John Tostanoski |
|
|
Title: Chief Executive Officer
(principal executive officer) |
Pursuant to the requirements
of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the registrant
and in the capacities and on the dates indicated.
SIGNATURE |
|
TITLE |
|
DATE |
|
|
|
|
|
/s/ John Tostanoski |
|
Chief Executive Officer, Director |
|
September 11, 2015 |
John Tostanoski |
|
(principal executive officer) |
|
|
|
|
|
|
|
/s/ Sharon Rosenbauer |
|
Chief Financial Officer |
|
September 11, 2015 |
Sharon Rosenbauer |
|
(principal financial and accounting officer) |
|
|
/s/ Clyde A. Biston |
|
President, Chairman |
|
September
11, 2015 |
Clyde A. Biston |
|
|
|
|
/s/ Jeff Chartier |
|
Director |
|
September
11, 2015 |
Jeff Chartier |
|
|
|
|
|
|
|
|
|
/s/ Luisa Ingargiola |
|
Director |
|
September 11, 2015 |
Luisa Ingargiola |
|
|
|
|
|
|
|
|
|
/s/ Earl Young |
|
Director |
|
September 11, 2015 |
Earl Young |
|
|
|
|
|
|
|
|
|
F-19
Exhibit 31.1
CERTIFICATION
OF CHIEF EXECUTIVE OFFICER
PURSUANT TO SECTION 302 OF THE
SARBANES-OXLEY ACT OF 2002
I, John Tostanoski,
certify that:
1. I have reviewed
this Amendment Number 1 to the Annual Report on Form 10-K/A of CES Synergies, 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: September 11, 2015 |
By: |
/s/ John Tostanoski |
|
|
John Tostanoski |
|
|
Chief Executive Officer
(Principal Executive Officer) |
Exhibit 31.2
CERTIFICATION
OF CHIEF FINANCIAL OFFICER
PURSUANT TO SECTION 302 OF THE
SARBANES-OXLEY ACT OF 2002
I, Sharon Rosenbauer,
certify that:
1. I have reviewed
this Amendment Number 1 to the Annual Report on Form 10-K/A of CES Synergies, 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: September 11, 2015 |
By: |
/s/ Sharon Rosenbauer |
|
|
Sharon Rosenbauer |
|
|
Chief Financial Officer
(Principal Financial Officer) |
Exhibit 32.1
CERTIFICATION OF CHIEF EXECUTIVE OFFICER
PURSUANT TO 18 U.S.C. SECTION 1350
AS ADOPTED PURSUANT TO
SECTION 906 OF THE SARBANES-OXLEY
ACT OF 2002
In connection with
the Amendment Number 1 to the Annual Report of CES Synergies, Inc. (the “Company”) on Form 10-K/A for the period ended
December 31, 2014 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, John Tostanoski,
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:
(1) |
The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and |
(2) |
The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. |
Date: September 11, 2015 |
By: |
/s/ John Tostanoski |
|
|
John Tostanoski |
|
|
Chief Executive Officer |
Exhibit 32.2
CERTIFICATION OF CHIEF FINANCIAL OFFICER
PURSUANT TO 18 U.S.C. SECTION 1350
AS ADOPTED PURSUANT TO
SECTION 906 OF THE SARBANES-OXLEY
ACT OF 2002
In connection with
the Amendment Number 1 to the Annual Report of CES Synergies, Inc. (the “Company”) on Form 10-K/A for the period ended
December 31, 2014 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Sharon
Rosenbauer, 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:
(1) |
The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and |
(2) |
The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. |
Date: September 11, 2015 |
By: |
/s/ Sharon Rosenbauer |
|
|
Sharon Rosenbauer |
|
|
Chief Financial Officer |
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