UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-K

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~~ 2015

¨ ☐ 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. ☒ Yes ☐ No

þIndicate ~~Yes ¨~~by Nocheck 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). ☒ Yes ☐ No

Indicate by check mark ~~whether~~if ~~the~~disclosure ~~registrant~~of ~~has~~delinquent ~~submitted~~filers ~~electronically~~pursuant ~~and~~to ~~posted~~Item on405 ~~its~~of ~~corporate~~Regulation ~~Web~~S-K ~~site,~~is ifnot ~~any~~contained herein, ~~every~~and ~~Interactive Data~~will ~~File required to~~ not be ~~submitted~~contained, ~~and posted pursuant~~ to ~~Rule~~the ~~405~~best of ~~Regulation~~registrant’s ~~S-T~~knowledge, (§in ~~232.405~~definitive ofproxy ~~this~~or ~~chapter)~~information ~~during~~statements ~~the preceding~~incorporated 12by ~~months~~reference in ~~(or~~Part ~~for~~III ~~such~~of ~~shorter~~this ~~period~~Form ~~that~~10-K ~~the~~or ~~registrant~~any ~~was~~amendment ~~required~~ to ~~submit~~this ~~and~~Form ~~post such files)~~10-K. ~~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 ☐ Smaller reporting company ☒ (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~~ ☒ No

As of June 30, ~~2014~~2015, 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 $0.2478, was approximately $25,~~846~~702,~~760~~190. 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 1730, ~~2015~~2016, was 46,~~730~~890,500.

Documents incorporated by reference: ~~None.~~

None.

FORM 10-K

FOR THE FISCAL YEAR ENDED DECEMBER 31, ~~2014~~2015

INDEX

		Page
	PART I
Item 1	Business	1
Item 1A	Risk Factors	65
Item 1B	Unresolved Staff Comments	98
Item 2	Properties	98
Item 3	Legal Proceedings	108
Item 4	Mine Safety Disclosures	108
	PART II
Item 5	Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities	109
Item 6	Selected Financial Data	109
Item 7	Management’s Discussion and Analysis of Financial Condition and Results of Operations	1110
Item 7A	Quantitative and Qualitative Disclosures About Market Risk	2219
Item 8	Financial Statements and Supplementary Data	F-1
Item 9	Changes in and Disagreements with Accountants on Accounting and Financial Disclosure	2320
Item 9A	Controls and Procedures	2320
Item 9B	Other Information	2320
	PART III
Item 10	Directors, Executive Officers, and Corporate Governance	2421
Item 11	Executive Compensation	2623
Item 12	Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters	2724
Item 13	Certain Relationships and Related Transactions, and Director Independence	2724
Item 14	Principal Accountant Fees and Services	2825
	PART IV
Item 15	Exhibits and Financial Statement Schedules	2926
	Signatures	3027

FORWARD-LOOKING STATEMENTS

Statements in this Annual Report on Form 10-K may be “forward-looking statements.” Forward-looking statements include, but are not limited to, statements that express our intentions, beliefs, expectations, strategies, predictions or any other statements relating to our future activities or other future events or conditions. These statements are based on current expectations, estimates and projections about our business based, in part, on assumptions made by management. These statements are not guarantees of future performance and involve risks, uncertainties and assumptions that are difficult to predict. Therefore, actual outcomes and results may, and are likely to, differ materially from what is expressed or forecasted in the forward-looking statements due to numerous factors, including those described above under Item 1A, “Risk Factors,” and under Item 7, “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in this Annual Report on Form 10-K and in other documents which we file with the Securities and Exchange Commission. In addition, such statements could be affected by risks and uncertainties related to our ability to raise any financing which we may require for our operations, competition, government regulations and requirements, pricing and development difficulties, our ability to make acquisitions and successfully integrate those acquisitions with our business, as well as general industry and market conditions and growth rates, and general economic conditions. Any forward-looking statements speak only as of the date on which they are made, and we do not undertake any obligation to update any forward-looking statement to reflect events or circumstances after the date of this Annual Report on Form 10-K, except as required under applicable securities laws.

PART I

ITEM 1. BUSINESS

Background

CES Synergies, Inc. (unless otherwise indicated, together with its consolidated subsidiaries, the “Company”) is a Nevada corporation formed on April 26, 2010. ~~under~~The Company is the ~~name~~parent ~~Green~~company ~~Living~~of ~~Concepts~~Cross Environmental Services, Inc. ~~Prior~~(“CES”) which towas incorporated in 1988 in the ~~Merger~~state ~~(discussed~~of ~~below),~~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. The Company ~~specialized~~is an asbestos and lead abatement contracting firm specializing in ~~assisting~~the ~~commercial~~removal of asbestos and ~~residential~~lead ~~clients~~from inbuildings ~~building~~and other structures, and~~/or~~ ~~remodeling~~demolition ~~their~~of ~~projects~~structures. The ~~with~~Company’s ~~sustainable~~services include removal of asbestos and lead, construction, installation, and repair of ceilings and insulation systems and ~~energy~~demolition. ~~efficient~~Most ~~solutions~~jobs are located within the state of Florida, but the Company accepts and performs jobs throughout the southeastern United States.

~~On November 1, 2013 (the “Closing~~References ~~Date”),~~in ~~the~~this ~~Company~~Annual ~~entered~~Report ~~into~~on ~~and~~Form ~~closed~~10-K anto ~~Agreement and Plan of Merger (the~~ “~~Merger Agreement”)~~we,” ~~with CES Acquisitions~~“us,” ~~Inc., a Florida corporation and wholly-owned subsidiary of the Company (the~~ “~~Subsidiary~~our”), and ~~Cross Environmental~~similar ~~Services,~~words ~~Inc.~~refer ~~(“CES”). Pursuant~~ to the ~~Merger Agreement, the Subsidiary merged into CES, such that~~Company ~~CES~~and ~~became~~its a wholly-owned ~~subsidiary~~subsidiaries ~~of the Company~~ (~~the~~including ~~“Merger”), and the Company issued 35,000,000 shares of the Company’s common stock to the shareholders of~~ CES ~~(the “Acquisition Shares”~~), ~~representing~~unless ~~approximately 75.2% of~~ the ~~Company’s~~context ~~aggregate~~indicates ~~issued and outstanding common stock following the closing of the Merger Agreement~~otherwise.

~~In connection with the Merger Agreement,~~Business ~~in addition to the foregoing:~~Summary

~~(i) Effective~~Since its formation in 1988, CES has been providing asbestos abatement, demolition, and mold remediation services to city, state, and federal agencies. Additional customers of CES include general contractors, developers, project owners, and industrial and commercial clients. Much of our work has been founded on the ~~Closing~~removal ~~Date~~of ~~(except~~hazardous asmaterials ~~otherwise~~from ~~indicated)~~structures ranging from residences to commercial and industrial applications, ~~the~~including ~~following~~secure ~~individuals~~defense ~~were~~contractor ~~appointed~~facilities, colleges, hospitals, and mid-rise and high-rise buildings and residential structures. Additionally, our experience working on federal projects, such as ~~executive~~the ~~officers~~Department of Interior, Bureau of Land Management Promiscuous Dump Clean Up, U.S. Fish and ~~directors~~Wildlife Service Midway Atoll Asbestos and Lead Paint Cleanup, and Department of Defense Military Housing Privatization Initiative, gives us the ~~Company:~~ expertise to provide the submittals and mandated government compliance documents for any size federal project.

Name Position Clyde A. Biston* Chief Executive Officer, Chairman Sharon Rosenbauer Chief Financial Officer, Treasurer, Vice President, Director John Tostanoski President, Director James Everett Chief Operating Officer, Secretary, Director James Smith Vice President Jeff Chartier DirectorBackground

*Since its ~~Clyde~~formation Ain 1988, Cross Environmental Services, Inc. ~~Biston~~(“CES”), ~~was~~a ~~appointed~~wholly-owned ~~Chief~~subsidiary of the Company, has been ~~Executive~~providing ~~Officer~~asbestos abatement, demolition, and ~~Chairman~~mold remediation services to city, state, and federal agencies. Our customers include general contractors, developers, project owners, and industrial and commercial clients. Much of our work has been founded on ~~September~~the removal 10of hazardous materials from structures ranging from residences to commercial and industrial applications, ~~2013~~including secure defense contractor facilities, colleges, hospitals, and mid-rise and high-rise buildings and residential structures. Additionally, our experience working on federal projects, such as the Department of Interior, Bureau of Land Management Promiscuous Dump Clean Up, U.S. Fish and Wildlife Service Midway Atoll Asbestos and Lead Paint Cleanup, and Department of Defense Military Housing Privatization Initiative, gives us the expertise to provide the submittals and mandated government compliance documents for any size federal project.

~~(ii) The~~CES removes ~~Company~~regulated ~~filed~~and ~~Articles~~hazardous ~~of Merger~~materials ~~with~~from ~~the~~industrial, ~~Secretary~~commercial ofand ~~State~~residential ofspaces. ~~Nevada~~Specifically, ~~pursuant~~we tohave ~~which,~~developed a ~~effective~~niche ~~November~~market 8,for ~~2013,~~our services that was facilitated by the ~~Company~~Environmental Protection Agency’s ~~wholly-owned~~National Emission Standards ~~subsidiary~~for Hazardous Air Pollutants, ~~CES~~or ~~Synergies~~NESHAP, ~~Inc~~regulations. ~~(formed~~Under ~~solely~~these ~~for~~regulations, ~~the~~if ~~purpose~~a ofbuilding ~~effecting~~or astructure ~~change~~is inaltered, ~~the~~modified or ~~Company’s~~renovated ~~name)~~in any way, ~~merged~~an ~~with and~~environmental ~~into~~survey of the ~~Company,~~building must be completed and ~~the~~regulated ~~Company’s~~hazardous ~~name~~materials ~~changed~~(asbestos) must be removed prior to ~~“CES~~the ~~Synergies,~~alteration ~~Inc~~or renovation.” We provide such services to our clients.

~~CES~~We also isprovide aservices ~~Florida~~related ~~corporation~~to ~~formed on~~the ~~February~~asbestos ~~10,~~removal ~~1988.~~process ~~CES~~including isinterior ademolition, ~~full~~lead-~~service~~based ~~environmental~~paint removal, ~~asbestos~~mold abatement, and full-scale structural demolition,. We are also adept at materials handling and ~~mold~~we ~~remediation~~have ~~services~~participated ~~company.~~in emergency response activities Onfor ~~November~~multiple 1hurricanes, ~~2013~~including Katrina, ~~CES~~Rita, ~~became~~Gene, Francis, Ivan, and many others. We have been able to develop niche markets by maintaining a ~~wholly-owned~~high ~~subsidiary~~level of ~~the~~technical ~~Company~~competence ~~pursuant~~coupled with prudent management and an energetic staff. We are willing to go ~~the~~to ~~Merger~~remote or extreme places to complete projects. ~~Effective~~Examples ~~upon~~of ~~the~~locations ~~Closing~~at ~~Date~~which we perform this type of work include Midway Atoll, Curacao, Guatemala, and remote Bahamian Islands. We also developed niches providing services in connection with various ~~the~~set-asides ~~business~~under offederal ~~CES~~law, ~~became~~including ~~the~~Service ~~business~~Connected Disabled Veteran Owned Small Business, Economically Disadvantaged Woman Owned Business, HUBZone, Veteran Owned, and Total Small Business. We have strategic alliances relating to all of ~~the~~such ~~Company~~set-asides and have utilized these alliances to generate projects.

~~References in this Annual Report on~~We ~~Form~~have ~~10-K~~an toestablished ~~“we,”~~operating ~~“us~~infrastructure,” ~~“our”~~with ~~and~~numerous ~~similar~~long-term ~~words~~contracts, ~~refer~~blanket topurchase ~~the~~orders, ~~Company~~ and ~~its~~ongoing ~~wholly-owned~~relationships ~~subsidiaries~~with ~~(including~~a ~~CES),~~robust ~~unless~~customer ~~the context indicates otherwise~~base.

1Our management and employees are very experienced and expert in their trades. We have nine project managers who have over 100 combined years of experience. All are skilled in project set-up, permitting, submittals, scheduling, and project close-out.

~~Business Summary~~1

~~Since~~In addition ~~its~~to ~~formation~~the intools ~~1988,~~made ~~CES~~available ~~has been~~to ~~providing~~our ~~asbestos~~project ~~abatement~~managers, ~~demolition,~~we ~~and~~have ~~mold~~a ~~remediation~~highly ~~services~~skilled tostaff ~~city,~~of ~~state,~~field personnel. We have multiple field superintendents and ~~federal~~supervisors ~~agencies~~who have fifteen to twenty years’ experience. ~~Additional customers~~Many of these people have been with CES ~~include~~since ~~general~~its ~~contractors,~~inception. ~~developers,~~Our ~~project~~field ~~owners~~supervisory staff has, ~~and~~in ~~industrial~~the ~~and~~aggregate, ~~commercial~~over ~~clients.~~200 ~~Much~~man-years of ~~our~~experience. ~~work~~We believe that ~~has~~almost ~~been~~as ~~founded~~important onas the ~~removal~~project ofpersonnel ~~hazardous~~and ~~materials~~related ~~from~~experience, ~~structures~~is ~~ranging~~having ~~from~~modern ~~residences~~late model equipment to ~~commercial~~work ~~and~~with. ~~industrial~~We ~~applications,~~have ~~including~~an ~~secure~~extensive ~~defense~~late ~~contractor~~model ~~facilities~~fleet of service trucks, ~~colleges~~box trucks, ~~hospitals~~vans, ~~and~~excavators, ~~mid-rise~~loaders, ~~and~~dump ~~high-rise~~trucks, ~~buildings~~semi tractors, and ~~residential~~roll ~~structures.~~off ~~Additionally,~~trucks ~~our~~that ~~experience~~can ~~working~~be ondeployed ~~federal~~to ~~projects,~~any ~~such~~project. asIn addition to the ~~Department~~large ofrolling ~~Interior~~stock and excavators, ~~Bureau~~we ofhave ~~Land~~an ~~Management~~extensive ~~Promiscuous~~inventory ~~Dump~~of ~~Clean~~specialty ~~Up,~~equipment ~~U.S.~~designed ~~Fish~~to provide demolition and ~~Wildlife~~abatement ~~Service~~services ~~Midway~~inside ~~Atoll~~a ~~Asbestos~~structure. ~~and~~This ~~Lead~~equipment ~~Paint~~includes ~~Cleanup,~~but ~~and~~is not ~~Department~~limited ofto ~~Defense~~skid ~~Military Housing~~steer ~~Privatization~~loaders ~~Initiative~~equipped with exhaust scrubbers, ~~gives~~mini usexcavators ~~the~~equipped ~~expertise~~with tohydraulic ~~provide~~hammers, ~~the~~automated tile ~~submittals~~removing machines, airless sprayers, and ~~mandated~~various ~~government~~handheld ~~compliance~~power ~~documents for~~tools ~~any~~designed ~~size~~for ~~federal~~material ~~project~~removal.

~~Background~~Customers

~~Since 1988, CES has been removing regulated~~Our ~~and~~target ~~hazardous~~market ~~materials~~includes ~~from~~commercial, industrial, ~~commercial~~federal, state and ~~residential~~municipal ~~spaces~~entities. ~~Specifically,~~Given wethe ~~have~~strict ~~developed~~requirements afor ~~niche~~control of ~~market~~infectious ~~for our~~dust ~~services~~and ~~that~~other ~~was~~engineered ~~facilitated~~controls byin ~~the~~healthcare ~~Environmental~~facilities ~~Protection~~(active ~~Agency’s~~hospitals), ~~National~~our ~~Emission~~targets ~~Standards~~include ~~for~~open ~~Hazardous~~and ~~Air~~active ~~Pollutants~~facilities ~~(or~~that ~~NESHAP)~~have ~~regulations.~~stringent ~~Under~~control ~~these~~components ~~regulations,~~similar ifto aand ~~building~~including orhealthcare ~~structure~~facilities. isAdditional ~~altered,~~examples ~~modified~~of ~~or renovated in any~~prospective ~~way,~~clients aninclude ~~environmental~~the ~~survey~~Department of ~~the~~Transportation, ~~building~~due ~~will need~~ to bethe ~~completed~~importance ~~and~~of ~~regulated~~infrastructure ~~hazardous~~improvement, ~~materials~~and ~~(asbestos)~~the ~~will~~ongoing need for toroadway beconstruction ~~removed~~and ~~prior~~related tobridge ~~the alteration or renovation~~construction. ~~We provide such services to our clients.~~

~~We also provide services related to~~Presented ~~the~~below ~~asbestos~~is removal process including interior demolition, lead-based paint removal, mold abatement, and full-scale structural demolition. We are also adept at materials handling and we have participated in emergency response activities for multiple hurricanes, including Katrina, Rita, Gene, Francis, Ivan, and many others. We have been able to develop niche markets by maintaining a ~~high level~~broad of technical competence coupled with prudent management and an energetic staff. We are willing to go to remote or extreme places to complete projects. Examples of locations at which we perform this type of work include Midway Atoll, Curacao, Guatemala, and remote Bahamian Islands. We also developed niches providing services in connection with various setcross-~~asides~~section under federal law, including Service Connected Disabled Veteran Owned Small Business, Economically Disadvantaged Woman Owned Business, HUBZone, Veteran Owned, and Total Small Business. We have strategic alliances relating to all of ~~such~~recent ~~set-asides~~customers ~~and~~segregated ~~have~~by ~~utilized~~customer ~~these alliances to generate projects.~~classification:

~~We have an established operating infrastructure,~~Federal ~~with numerous long-term contracts, blanket purchase orders, and ongoing relationships with a robust customer base.~~Agencies:

~~Our~~● ~~management~~NASA ~~and~~● ~~employees~~Bureau ~~are~~of ~~very experienced~~Land ~~and~~Management ~~are~~● ~~expert~~Smithsonian inInstitution ~~their~~● ~~trades.~~Department Weof ~~have~~the ~~eight~~Air ~~project~~Force ~~managers~~● ~~who~~Department ~~have~~of ~~over~~the ~~100~~Navy ~~combined~~● ~~years~~Department of ~~experience~~the Interior ● National Park Service ● Space Command ● U.S. ~~All are~~Army ~~skilled~~Corps inof ~~project~~Engineers ~~set-up,~~● ~~permitting,~~Department ~~submittals,~~of ~~scheduling,~~Interior ~~and~~● ~~project~~National ~~close-out.~~Park Service

In addition to the tools made available to our project managers, we have a highly skilled staff of field personnel. We have multiple field superintendents and supervisors that have fifteen to twenty years’ experience. Many of these people have been with CES since its inception. Our field supervisory staff has, in the aggregate, over 200 man-years of experience. We believe that almost as important as the project personnel and related experience, is having modern late model equipment to work with. We have an extensive late model fleet of service trucks, box trucks, vans, excavators, loaders, dump trucks, semi tractors, and roll off trucks that can be deployed to any project. In addition to the large rolling stock and excavators, we have an extensive inventory of specialty equipment designed to provide demolition and abatement services inside a structure. This equipment includes but is not limited to skid steer loaders equipped with exhaust scrubbers, mini excavators equipped with hydraulic hammers, automated tile removing machines, airless sprayers, and various handheld power tools designed for material removal.Industrial:

~~Customers~~● CEMEX ● Florida Citrus Industry ● JBT Foods ● Martin Marietta ● Exilis ● Publix Super Markets

Our target market includes commercial, industrial, federal, state and municipal entities. Given the strict requirements for control of infectious dust and other engineered controls in healthcare facilities (active hospitals), our targets include open and active facilities that have stringent control components similar to and including healthcare facilities. Additional examples of prospective clients include the Department of Transportation, due to the importance of infrastructure improvement, and the ongoing need for roadway construction and related bridge construction.Commercial:

In● ~~2014,~~Jones ~~Renu~~Lang ~~Asset~~LaSalle ~~Recovery,~~● ~~the~~Ajax ~~general contractor~~Contracting ~~for~~● ~~the~~Hensel ~~DTE~~Phelps ~~Energy~~● ~~power~~Whitesel-Green ~~plant~~● ~~project~~J2 in Michigan, and the Florida Department of Transportation (FDOT), accounted for 13.9% and 15.2% of revenue, respectively. In 2013, two customers accounted for more than ten percent of our total revenues: the FDOT (16.2%) and Sarasota County Schools (11.4%).Enterprises

2State, County, Municipal:

~~Presented~~● ~~below~~Florida isDepartment aof ~~broad~~Transportation ~~cross-section~~ ● Multiple Municipalities ● University of ~~recent~~South ~~customers~~Florida ~~segregated~~● bySarasota ~~customer~~County ~~classification:~~Schools ● Orange County Schools

~~Federal Agencies:~~2

·In 2015, ~~NASA~~Renu Asset Recovery, the general contractor for the DTE Energy power plant project in Michigan, and Barton Malow Co., the general contractor for the a large demolition project in Daytona Beach, Florida, accounted for 23% and 7% of revenue, respectively. In 2014, Renu Asset Recovery and the Florida Department of Transportation (FDOT) accounted for 13.9% and 15.2% of revenue, respectively.

~~· Bureau of Land Management~~Services Strategy

·We offer ~~Smithsonian~~services ~~Institution~~in the environmental contracting arena. Our core business includes hazardous material removal (lead and asbestos), interior demolition, full scale demolition, and mold remediation. Historically, our customers have come to us either through a low bid environment or through direct negotiations.

·We believe ~~Department~~set-aside government contracting is an additional growth opportunity for us. We have participated in this sector of the federal ~~Air~~market ~~Force~~by teaming with firms that have the various set-aside designations. Additionally, we created our own Service Connected Disabled Veteran Owned Small Business in an effort to capture a portion of the federal market that had been previously off-limits to CES. Success to date with this firm has been limited to two current contracts.

·Effects of ~~Department~~Seasonality ofand ~~the~~Economic ~~Navy~~Uncertainty

·We may ~~Department~~be subject to seasonal fluctuations and construction cycles at educational institutions, where large projects are typically carried out during summer months when their facilities are unoccupied. Government customers, many of which have fiscal years that do not coincide with ours, typically follow annual procurement cycles and appropriate funds on a fiscal-year basis even though contract performance may take more than one year. Further, government contracting cycles can be affected by the ~~Interior~~timing of, and delays in, the legislative process related to government programs and incentives that help drive demand for energy efficiency and renewable energy projects. As a result, our revenue and operating income in the third quarter are typically higher, and our revenue and operating income in the first quarter are typically lower, than in other quarters of the year. As a result of such fluctuations, we may occasionally experience declines in revenue or earnings as compared to the immediately preceding quarter, and comparisons of our operating results on a period-to-period basis may not be meaningful.

·To manage ~~National~~uncertainties ~~Park~~created ~~Service~~by business seasonality, we have implemented business processes to give us flexibility to manage overhead and job costs. Those processes allow us to determine when it is most cost effective to use Company-owned assets or to contract out aspects of a project. For example, when the Company was awarded a sizeable post-Hurricane Katrina demolition contract in Louisiana, the processes led it to develop relationships with local subcontractors under Company management and supervision to perform the demolition work rather than moving Company heavy equipment and personnel to Louisiana, thereby preserving margins on the contract.

·During the ~~Space~~recession ~~Command~~that started in 2008, the number of projects available to the Company in Florida fell. To allow the Company to maintain cash reserves necessary to execute the Louisiana contract, management agreed to a 10% reduction in salaries, and did so for a full year, until finances righted themselves in late 2009. No field supervisors or workers were laid off during this period. CES retained its skilled workforce, allowing the contracts in Louisiana to return a 41% gross profit.

·Backlog and ~~U.S.~~Awarded ~~Army Corps of Engineers~~Projects

·Our sales ~~Department~~cycle begins with the initial contact with the customer and ends, when successful, with a signed contract, also referred to as fully-contracted backlog. Historically, our sales cycle typically has averaged 30 days. Awarded backlog is created when a potential customer awards a project to us following a request for proposal. Once a project is awarded but not yet contracted, we typically conduct a detailed review to determine the scope of ~~Interior~~the project. At this point, we also determine the sub-contractor, and what equipment will be used. Historically, awarded projects typically have taken 45 days to result in a signed contract and thus convert to fully-contracted backlog. This process may take longer, however, depending upon the size and complexity of the project. Further, at times in the past we have experienced periods during which the portion of the sales cycle for converting awarded project to signed contracts has lengthened. Recently, we have been experiencing an unusually sustained lengthening of conversion times. Continued U.S. federal fiscal uncertainty not only has contributed to a lengthening of our sales cycle for U.S. federal projects, but also has adversely affected both municipal and commercial customers across most geographic regions. We have observed among our existing and prospective customer base increased scrutiny of decisions about spending and about incurring debt to finance projects. For example, we have observed increased use of outside consultants and advisors, as well as adoption of additional approval steps, by many of our customers, which has resulted in a lengthening of the sales cycle. We expect this trend to continue in 2016. After the customer agrees to the terms of the contract and the contract is executed, the project moves to fully-contracted backlog. The contracts reflected in our fully-contracted backlog typically have a construction period of 30-45 days and we typically expect to recognize revenue for such contracts over the same period. Fully-contracted backlog begins converting into revenue generated from backlog on a percentage-of-completion basis once construction has commenced.

~~· National Park Service~~3

~~Industrial:~~Facilities and Assets

·In addition ~~CEMEX~~to the contract acquisition approach defined above, we anticipate expansion of services, facilities, and assets to increase profitability. Specifically, we plan to expand our sales footprint into additional areas outside of the state of Florida, and focus on maintaining our core business lines in additional markets.

~~· Florida Citrus Industry~~Business Model

·We intend ~~JBT~~to ~~Foods~~continue to operate in 2016 with a reduced overhead and a focus on profitability. We will continue to prepare sealed bids for municipal, county, state, and federal projects. We will still respond to invitations to bid from private and public entities. All of the systems and processes are in place to facilitate these ongoing procurement procedures. We plan to expand our systems to seek projects in a larger geographic area and for a larger customer base. We plan to expand our systems to seek projects in a larger geographic area and for a larger customer base.

~~· Martin Marietta~~Competition

·Companies that ~~Exilis~~compete with us both locally and on a national level include but are not limited to Cross Construction Services, Lang Environmental, and Northstar. We believe we have several competitive advantages. We have multiple employees that have been with us since or close to our inception. Our staff is very experienced and efficient. We make it a point to keep our key employees on staff and we keep them current with ongoing training. We believe our work force is one of the most experienced and well-trained in the industry. Our management staff possesses over 100 years of combined experience. We believe we have an edge over our competitors in terms of experience and technical ability.

·We specifically ~~Publix~~target ~~Super~~projects ~~Markets~~with robust requirements in tough locations because we have the experience and resources available to see them to fruition. Additionally, these projects are more profitable. We believe in long-term relationships and work to facilitate them with our customers. We believe that our ability to complete complex projects and to service our customers on a long term basis through difficult economic times gives us a strategic advantage over some of our competitors.

~~Commercial:~~Government Regulations

·We are ~~Jones~~subject ~~Lang~~to ~~LaSalle~~an extensive and frequently changing statutory and regulatory framework of federal, state, and local environmental, health, safety, and transportation authorities, which imposes significant compliance burdens and risks upon us. We believe we are in substantial compliance with all material federal, state, and local laws governing our material business operations. Nevertheless, amendments to existing statutes and regulations, adoption of new statutes and regulations and our expansion into other jurisdictions and types of operations could result not only in the additional risk of noncompliance, but also in an increase in regulatory burdens that could cause related increases in costs and expenses.

·The federal ~~Ajax~~regulations ~~Contracting~~of most importance to us are governed by the Occupational Safety and Health Administration, the Mine Safety and Health Administration, the Department of Transportation, and the Environmental Protection Agency. We are also significantly impacted by environmental regulations governed by state environmental protection agencies. We believe we are substantially in compliance with all material regulations. We conduct training programs and inspections on a regular basis. In addition, our brokers and insurance carriers also conduct inspections.

·Permits and ~~Hensel Phelps~~Licenses

·Many states ~~Whitesel~~license such areas of our operations as asbestos abatement and general contracting. In such states, employees and supervisors are required to receive training from EPA-~~Green~~approved and state-certified organizations and pass required tests. We are currently licensed to perform our services in approximately 12 states. We also operate in certain states that do not have special asbestos abatement or general contracting license requirements; however, these states have adopted regulations regarding worker safety with which we must comply.

~~· J2 Enterprises~~Employees

~~State~~As of the date of the filing of this Annual Report on Form 10-K, ~~County~~we have 143 employees, ~~Municipal:~~all of whom work full time.

~~· Florida Department of Transportation~~4

·ITEM 1A. RISK ~~Multiple Municipalities~~FACTORS

·An investment ~~University~~in the Company’s common stock involves a high degree of ~~South~~risk. ~~Florida~~In determining whether to purchase the Company’s common stock, an investor should carefully consider all of the material risks described below, together with the other information contained in this Annual Report on Form 10-K, before making a decision to purchase the Company’s securities. An investor should only purchase the Company’s securities if he or she can afford to suffer the loss of his or her entire investment.

·Risks Related ~~Sarasota~~to ~~County~~our ~~Schools~~Business

·Our substantial ~~Orange~~level ~~County~~of ~~Schools~~indebtedness could adversely affect our financial condition and ability to fulfill our obligations.

~~Services~~As of ~~Strategy~~December 31, 2015, the Company had $6,073,414 in notes payable and $2,959,599 in accounts payable and accrued expenses. Our level of indebtedness may adversely affect our ability to obtain additional financing for working capital, capital expenditures, acquisitions and other general corporate purposes and may make us more vulnerable to an economic downturn than our competitors with less debt.

~~We offer services in the environmental contracting arena.~~ Our ~~core~~ business ~~includes hazardous material removal (lead~~ and ~~asbestos),~~results ~~interior~~of ~~demolition,~~operations ~~full~~would ~~scale demolition,~~be ~~and~~adversely ~~mold~~affected ~~remediation.~~if ~~Historically,~~we ~~our~~are ~~customers~~unable ~~have come~~ to ussecure ~~either~~reasonably ~~through~~priced ainsurance ~~low~~that ~~bid environment or through~~is ~~direct~~required ~~negotiations. Within the last two and a half years, CES submitted a response to a solicitation~~ for the U.S. General Services Administration (or GSA) environmental schedule, which was accepted. As a result, federal government agencies may contract with us without further need for procurement activities, and United Nations member countries may also utilize the contract vehicle if they desire. This arrangement allows us to avoid the costs associated with competitive bidding and also protects a portion of our ~~contract margins~~operations.

WeBecause our ~~believe~~business sometimes involves the ~~GSA~~handling ~~opportunities~~and disposal of hazardous materials, we are a ~~potential~~required ~~growth~~to ~~area~~maintain ~~for~~insurance ~~the~~coverage that ~~Company.~~can Webe ~~intend,~~expensive. ~~subject~~Our ability to ~~obtaining~~continue conducting business could be adversely affected if we should become unable to secure sufficient ~~capital~~insurance coverage, surety bonds and financial assurances at reasonable cost to ~~implement~~meet ~~advertising~~our business and ~~marketing~~regulatory requirements. ~~strategies~~The ~~and~~availability ~~hire~~of ~~additional~~insurance ~~staff~~could tobe ~~grow~~affected by factors outside of our ~~sales~~control inas ~~this~~well ~~area~~as the insurers' or sureties' assessment of our risk.

3The environmental services industry in which we participate is subject to significant economic and business risks.

~~We believe set-aside government contracting~~Our isfuture anoperating ~~additional~~results ~~growth~~may ~~opportunity~~be ~~for~~affected ~~us.~~by Wesuch ~~have~~factors ~~participated~~as inour ~~this~~ability ~~sector~~to ofwin ~~the~~new ~~federal~~business ~~market~~and byremain ~~teaming~~competitive ~~with~~in ~~firms~~the ~~that~~face ~~have~~of ~~the~~price ~~various~~competition ~~set-aside~~from ~~designations.~~competitors ~~Additionally,~~who weare ~~created~~often ~~our~~larger ~~own~~and ~~Service~~better ~~Connected~~capitalized ~~Disabled~~than ~~Veteran~~us; ~~Owned~~maintain ~~Small~~and/or ~~Business~~build market share in an ~~effort~~industry tothat ~~capture~~has aexperienced ~~portion~~downsizing ofand ~~the~~consolidation; ~~federal~~reduce ~~market~~costs ~~that~~without ~~had~~negatively ~~been~~impacting ~~previously~~operations; ~~off-limits~~minimize downtime toand ~~CES.~~disruptions ~~Success~~of tooperations; ~~date~~and ~~with~~weather ~~this firm~~economic ~~has~~downturns ~~been~~or ~~limited~~recessionary ~~to two current contracts~~conditions.

~~Effects~~A significant portion of ~~Seasonality~~our business is derived as a result of events and ~~Economic~~circumstances ~~Uncertainty~~over which we have no control.

~~We may be subject to seasonal fluctuations~~Certain ~~and~~services ~~construction~~that ~~cycles~~we atprovide ~~educational institutions, where large projects~~ are ~~typically~~impacted ~~carried~~by ~~out~~events ~~during~~such ~~summer~~as ~~months~~increasingly ~~when their~~stringent ~~facilities~~environmental ~~are unoccupied. Government customers~~regulations, ~~many~~and ofseasonal ~~which have fiscal years that do not coincide with ours, typically~~fluctuations ~~follow~~due ~~annual~~to ~~procurement~~weather ~~cycles~~ and ~~appropriate~~budgetary ~~funds on a fiscal-year basis even though contract performance may take more than one year. Further, government contracting~~ cycles ~~can~~influencing ~~be affected by~~ the timing of, ~~and~~customers' ~~delays~~spending ~~in,~~for ~~the~~remedial ~~legislative~~activities. ~~process~~We ~~related to~~do ~~government~~not ~~programs~~control ~~and~~such factors ~~incentives that help drive demand for energy efficiency~~ and, ~~renewable~~as ~~energy projects. As~~ a result, our revenue and ~~operating~~ income incan ~~the~~vary ~~third~~significantly from quarter ~~are~~to ~~typically~~quarter ~~higher,~~ and ~~our~~from ~~revenue~~year ~~and~~to ~~operating income in the first quarter are typically lower, than in other quarters of the~~ year. AsPrior afinancial performance ~~result~~for ofcertain ~~such~~periods ~~fluctuations, we~~ may ~~occasionally~~not ~~experience declines~~be ina ~~revenue~~reliable orindicator ~~earnings as compared to the immediately preceding quarter, and comparisons~~ of ~~our~~future ~~operating~~performance ~~results~~for ~~on a~~comparable ~~period-to-period~~periods ~~basis~~in ~~may~~subsequent ~~not be meaningful~~years.

~~To manage uncertainties created by~~Because ~~business~~our ~~seasonality,~~quarterly weand ~~have~~annual ~~implemented~~operating ~~business~~results ~~processes~~are todifficult ~~give us flexibility~~ to ~~manage~~predict ~~overhead~~ and ~~job~~may ~~costs. Those processes allow us to determine when it is most cost effective to use Company-owned assets or to contract out aspects of a project. For example~~fluctuate, ~~when~~ the ~~Company~~market ~~was~~price ~~awarded~~for aour ~~sizeable~~stock ~~post-Hurricane~~may ~~Katrina~~be demolition contract in Louisiana, the processes led it to develop relationships with local subcontractors under Company management and supervision to perform the demolition work rather than moving Company heavy equipment and personnel to Louisiana, thereby preserving margins on the contractvolatile.

~~During~~Our operating ~~the~~results ~~recession~~have ~~that~~fluctuated ~~started~~significantly in ~~2008,~~ the ~~number~~past ofand ~~projects~~may ~~available~~continue to ~~the~~fluctuate ~~Company~~significantly in ~~Florida~~the ~~fell~~future. To ~~allow the Company to maintain cash reserves~~Fluctuations ~~necessary~~in tooperating ~~execute~~results ~~the~~may ~~Louisiana~~result ~~contract, management agreed to a 10% reduction~~ in ~~salaries,~~volatility ~~and~~of ~~did~~the soprice ~~for~~of aour ~~full~~common ~~year, until finances righted themselves in late 2009~~stock. No ~~field~~These ~~supervisors~~quarterly orand ~~workers~~annual ~~were~~fluctuations ~~laid~~may ~~off during this period. CES~~result ~~retained~~from ~~its skilled workforce, allowing the contracts in Louisiana to return~~ a ~~41%~~number ~~gross~~of ~~profit.~~factors, including:

~~Backlog~~● the size of new contracts and ~~Awarded~~when ~~Projects~~we are able to recognize the related revenue; ● our rate of progress under our contracts; ● the timing of customer and market acceptance of our product and service offerings; ● budgeting cycles of our customers; ● the mix of products and services sold; ● changes in demand for our products and services; ● level and timing of expenses for product development and sales, general and administrative expenses; ● competition; ● changes in our strategy; and ● general economic conditions.

~~Our~~Personnel costs ~~sales~~are ~~cycle~~a ~~begins~~significant ~~with~~component ~~the~~of ~~initial contact~~our ~~with~~budgeted ~~the~~expense ~~customer~~levels and ~~ends~~, ~~when successful~~therefore, ~~with~~our aexpenses ~~signed contract~~are, ~~also referred~~ to asa ~~fully-contracted~~degree, ~~backlog.~~variable ~~Historically,~~based upon our ~~sales~~expectations ~~cycle~~regarding ~~typically~~future ~~has averaged 30 days~~revenue. ~~Awarded~~Our ~~backlog~~revenue is ~~created~~difficult ~~when a potential customer awards a project~~ to usforecast ~~following a~~because ~~request~~the market for ~~proposal.~~our ~~Once~~products aand ~~project~~ services is ~~awarded~~rapidly ~~but not yet contracted~~changing, ~~we typically conduct a detailed review to determine the scope of the project. At this point, we also determine the sub-contractor,~~ and ~~what~~our ~~equipment~~sales ~~will~~cycle ~~be used. Historically, awarded projects typically have taken 45 days to result in a signed contract~~ and ~~thus convert to fully-contracted backlog. This process may take longer, however, depending upon~~ the size and ~~complexity~~timing of ~~the~~significant ~~project.~~contracts ~~Further,~~varies atsubstantially ~~times~~among ~~in the past we have experienced periods during which the portion of the sales cycle for converting awarded project to signed contracts has lengthened~~customers. ~~Recently~~Accordingly, we ~~have~~may ~~been~~be ~~experiencing~~unable anto ~~unusually~~adjust ~~sustained~~spending ~~lengthening~~in ofa ~~conversion~~timely ~~times.~~manner ~~Continued U.S. federal fiscal uncertainty not only has contributed~~ to acompensate ~~lengthening~~for ofany ~~our~~unexpected ~~sales~~shortfall ~~cycle~~in ~~for U~~revenue.S. ~~federal projects, but also has adversely affected both municipal~~Any ~~and~~significant ~~commercial~~shortfall ~~customers~~from ~~across~~anticipated ~~most~~levels ~~geographic~~of ~~regions.~~demand Wefor ~~have observed among~~ our ~~existing~~products and ~~prospective~~services ~~customer~~could ~~base~~adversely ~~increased scrutiny~~affect of decisions about spending and about incurring debt to finance projects. For example, we have observed increased use of outside consultants and advisors, as well as adoption of additional approval steps, by many of our ~~customers~~business, ~~which has resulted~~financial ~~in a lengthening of the sales cycle. We expect this trend to continue in 2015. After the customer agrees to the terms of the contract and the contract is executed~~condition, ~~the~~results ~~project moves to fully-contracted backlog. The contracts reflected in our fully-contracted backlog typically have a construction period~~ of ~~30-45~~operations ~~days~~ and wecash ~~typically expect to recognize revenue for such contracts over the same period~~flows. ~~Fully-contracted backlog begins converting into revenue generated from backlog on a percentage-of-completion basis once construction has commenced.~~

4Based on these factors, we believe our future quarterly and annual operating results may vary significantly from quarter to quarter and year to year. As a result, quarter-to-quarter and year-to-year comparisons of operating results are not necessarily meaningful nor do they indicate what our future performance will be. Furthermore, we believe that in future reporting periods if our operating results fall below the expectations of public market analysts or investors, it is possible that the market price of our common stock could decline.

~~Facilities and Assets~~5

~~In addition to the contract acquisition~~Our ~~approach defined above, we anticipate expansion of services, facilities, and assets to increase revenue and profitability. Specifically, we plan to seek to acquire facilities that will promote~~ business ~~related~~depends tolargely ~~existing surplus equipment. Our trucking fleet has been underutilized in recent months due to a desire to utilize subcontract trucking~~ on our ~~demolition~~ability ~~projects. This approach means that we own several roll off trucks that have not been utilized in our business operations. In fact, we have recently removed several of them from service~~ to ~~reduce~~attract our overhead expense. We believe it would be fairly easy to start/add a debris management service to our existing business. We anticipate coupling this with a transfer station located in South Georgia to maximize the revenues from the anticipated trucking and ~~landfill~~retain ~~portion~~talented ~~of our expansion~~employees.

~~Business~~Our ability ~~Model~~to manage future expansion, if any, effectively will require us to attract, train, motivate and manage new employees successfully, to integrate new management and employees into our overall operations and to continue to improve our operations, financial and management systems. We may not be able to retain personnel or to hire additional personnel on a timely basis, if at all. Because of the complexity and training required in certain of our services, a significant time lag exists between the hiring date of technical and sales personnel and the time when they become fully productive. Our failure to retain personnel or to hire qualified personnel on a timely basis could adversely affect our business by impacting our ability to service certain customers and to secure new contracts.

We ~~intend to continue to operate largely~~ as we have in the past, but on a larger scale. We will continue to prepare sealed bids for municipal, county, state, and federal projects. We will still respond to invitations to bid from private and public entities and we will continue to pursue set-aside and GSA opportunities. All of the systems and processes are insubject ~~place~~ to ~~facilitate~~extensive ~~these~~environmental ~~ongoing~~regulations ~~procurement~~that ~~procedures.~~may Weincrease ~~plan to expand~~ our ~~systems~~costs ~~to seek projects in a larger geographic area~~ and ~~for~~potential ~~a larger customer base~~liabilities. In addition to expanding our environmental contracting services, we also anticipate adding debris management and disposal services. We plan to facilitate this effort through the use of direct sales made by a sales team which we plan to put into place. Specifically, we plan to put a sales team into place that will focus primarily on soliciting business.

~~Competition~~The operations of all companies in the environmental services industry are subject to federal, state, and local environmental requirements. Although increasing environmental regulation often presents new business opportunities for us, it also results in increased operating and compliance costs. Efforts to conduct our operations in compliance with all applicable laws and regulations, including environmental rules and regulations, require programs to promote compliance, such as training employees and customers, purchasing health and safety equipment, and in some cases hiring outside consultants. Even with these programs, we and other companies in the environmental services industry are faced with governmental enforcement proceedings, which can result in fines or other sanctions and require expenditures for remedial work. Certain of these laws impose strict and, under certain circumstances, joint and several liability for cleanup of releases of regulated materials, and also liability for related natural resource damages.

~~Companies~~At some ~~that~~time ~~compete~~in ~~with~~the usfuture ~~both locally~~we ~~and~~may onbe arequired ~~national~~to ~~level~~pay ~~include~~fines ~~Cross~~or ~~Construction~~penalties ~~Services,~~due ~~Lang~~to ~~Environmental,~~regulatory ~~and~~enforcement ~~LVI~~proceedings ~~Environmental~~and ~~Services~~such ~~Inc. (as~~fines ~~well~~or aspenalties ~~others).~~could Wehave ~~believe~~a wenegative ~~have~~impact ~~several~~on ~~competitive~~our ~~advantages~~earnings. WeAdditionally, ~~have~~regulatory ~~multiple~~authorities ~~employees that~~ have ~~been~~the ~~with~~power usto ~~since~~suspend or revoke ~~close~~permits toor ~~our~~licenses ~~inception.~~needed ~~Our~~for ~~staff~~our isoperations, ~~very~~which ~~experienced~~may ~~and~~affect ~~efficient.~~our Wecustomers' ~~make~~willingness ~~it a point~~ to ~~keep~~do ~~our~~business ~~key~~with ~~employees~~us onand/or ~~staff~~our ~~and~~ability weto ~~keep~~conduct ~~them~~business. ~~current~~This, ~~with~~in ~~ongoing~~turn, ~~training.~~would Weimpact ~~believe~~ our ~~work~~revenue ~~force~~and isprofitability. ~~one~~To ofdate, ~~the~~we ~~most~~have ~~experienced~~never ~~and~~had ~~well-trained~~any inof ~~the~~our ~~industry.~~operating ~~Our~~permits ~~management~~revoked, ~~staff~~suspended ~~possesses~~or ~~over~~non-renewed ~~100~~involuntarily, ~~years~~although ofit ~~combined~~is ~~experience.~~possible Wethat ~~believe~~any weof ~~have~~these anevents ~~edge~~could ~~over~~occur ~~our competitors~~ in ~~terms of~~the ~~experience and technical ability~~future.

~~We specifically target projects with~~Changes ~~robust requirements~~ in ~~tough~~environmental ~~locations~~regulations ~~because~~or weentry ~~have~~into ~~the~~related ~~experience~~businesses ~~and~~may ~~resources~~require ~~available~~us to ~~see~~make ~~them~~significant tocapital ~~fruition~~expenditures. Additionally, these projects are more profitable. We believe in long-term relationships and work to facilitate them with our customers. We believe that our ability to complete complex projects and to service our customers on a long term basis through difficult economic times gives us a strategic advantage over some of our competitors.

~~Government~~Changes in ~~Regulations~~environmental regulations or our entry into new businesses can require us to make significant capital expenditures. Periodically the government revises rules and regulations regarding the handling and disposal of hazardous substances that requires us and other companies in the environmental services industry to invest in new equipment, training or other areas in order to remain in compliance. Additionally, future environmental regulations and acquisitions could cause us to make significant additional capital expenditures and adversely affect our results of operations and cash flows.

~~We are subject to an extensive~~If and frequently changing statutory and regulatory framework of federal, state, and local environmental, health, safety, and transportation authorities, which imposes significant compliance burdens and risks upon us. We believe we are in substantial compliance with all material federal, state, and local laws governing our ~~material~~internal ~~business~~growth ~~operations.~~objectives ~~Nevertheless, amendments~~prove to ~~existing~~be ~~statutes and regulations~~inaccurate, ~~adoption of new statutes and regulations and~~ our ~~expansion~~results ~~into other jurisdictions and types~~ of operations could ~~result~~be ~~not~~adversely ~~only in the additional risk of noncompliance, but also in an increase in regulatory burdens that could cause related increases in costs and expenses~~affected.

~~The~~While we ~~federal~~believe that increasing environmental regulations ofand ~~most~~our ~~importance to~~growing product and services portfolio provide us ~~are~~with ~~governed~~ample bygrowth opportunities, ~~the~~it ~~Occupational~~is ~~Safety~~possible ~~and~~that ~~Health~~we ~~Administration,~~will ~~the~~not ~~Mine~~be ~~Safety~~able ~~and~~to ~~Health~~achieve ~~Administration,~~our ~~the~~internal ~~Department~~growth objectives due to potentialities such as a lack of ~~Transportation~~growth capital, intense competition, regulatory issues, loss of permits and ~~the~~licenses, ~~Environmental~~and ~~Protection~~other ~~Agency~~factors. WeLikewise, ~~are~~while we may also ~~significantly~~seek ~~impacted~~to bygrow ~~environmental~~through ~~regulations~~acquisition, ~~governed by~~it ~~state~~is ~~environmental~~possible ~~protection~~that ~~agencies.~~we Wewill ~~believe~~be weunable ~~are~~to ~~substantially~~grow inthis ~~compliance~~way ~~with~~due ~~all~~to ~~material~~lack ~~regulations.~~of Weadequate ~~conduct~~financing, ~~training~~lack ~~programs~~of ~~and~~viable ~~inspections~~acquisition oncandidates, acompetition ~~regular~~for ~~basis~~such acquisitions and other factors. InTo ~~addition~~the extent that our growth objectives prove to be significantly different than actual results, our ~~brokers~~results ~~and~~of ~~insurance~~operations ~~carriers~~could ~~also~~be ~~conduct~~adversely ~~inspections~~affected.

5We do business in a highly competitive industry and compete with companies that have substantially more resources that we do.

~~Permits~~The environmental services industry is highly competitive. Several of the companies with which we compete are larger, offer more services and ~~Licenses~~products, have better access to growth capital, have larger sales and marketing departments and larger workforces and other advantages that may make it difficult for us to win new business when in competition with them.

~~Many states license such areas of our~~We ~~operations~~may asneed ~~asbestos~~significant ~~abatement~~additional ~~and general contracting. In such states~~capital, ~~employees~~which ~~and~~we ~~supervisors~~may ~~are~~be ~~required~~unable to ~~receive~~ ~~training from EPA-approved and state-certified organizations and pass required tests~~obtain. We are currently licensed to perform our services in approximately 11 states. We also operate in certain states that do not have special asbestos abatement or general contracting license requirements; however, these states have adopted regulations regarding worker safety with which we must comply.

~~Employees~~We may need to obtain additional financing over time to fund operations. Management cannot predict the extent to which we will require additional financing, and can provide no assurance that additional financing will be available on favorable terms or at all. The rights of the holders of any debt or equity that may be issued in the future could be senior to the rights of shareholders, and any future issuance of equity could result in the dilution of shareholders’ proportionate equity interests in the Company. Failure to obtain financing or obtaining financing on unattractive terms could have a material adverse effect on our business, prospects, results of operations and financial condition.

~~As of the date of the filing of this Annual Report on Form 10-K, we have 125 employees, all of whom work full time.~~6

~~ITEM~~We are ~~1A.~~dependent ~~RISK~~on ~~FACTORS~~the continued services and performance of our senior management, the loss of any of whom could adversely affect our business, operating results and financial condition.

AnOur future ~~investment~~performance independs on the ~~Company’s common~~continued ~~stock~~services ~~involves~~and acontinuing ~~high~~contributions ~~degree~~ of ~~risk.~~our Insenior ~~determining~~management ~~whether~~ to ~~purchase~~execute ~~the~~our ~~Company’s common stock~~business plan, anand ~~investor should~~to ~~carefully~~identify ~~consider~~and ~~all~~pursue ofnew ~~the~~opportunities. ~~material~~The ~~risks~~loss ~~described~~of ~~below,~~services ~~together~~of ~~with~~senior ~~the~~management, ~~other~~particularly ~~information~~Clyde ~~contained~~A. inBiston, ~~this Annual~~CES’s ~~Report~~founder onand ~~Form~~our ~~10-K,~~Chief ~~before~~Executive ~~making~~Officer, acould ~~decision~~significantly todelay ~~purchase~~or prevent the ~~Company’s~~achievement ~~securities.~~of Anour ~~investor~~strategic ~~should~~objectives. ~~only~~The loss ~~purchase~~of the ~~Company’s~~ ~~securities~~services ifof hesenior ormanagement ~~she~~for ~~can~~any ~~afford~~reason tocould ~~suffer~~adversely ~~the~~affect ~~loss~~our ofbusiness, ~~his~~prospects, orfinancial ~~her~~condition ~~entire~~and results ~~investment~~of operations.

~~Risks~~A significant ~~Related~~portion toof our ~~Business~~revenue is dependent upon a small number of customers and the loss of any one of these customers would negatively impact our revenues and our results of operations.

~~Our~~We derived ~~substantial~~approximately ~~level~~42.7% of ~~indebtedness~~our revenues from two customers in 2015 (revenue for one of those customers was earned under 13 ~~could~~separate ~~adversely~~contracts). ~~affect~~If ~~our~~any ~~financial~~of ~~condition~~our ~~and~~major ~~ability~~customers were to ~~fulfill~~terminate or materially reduce their business relationships with us, our ~~obligations~~operating results would be materially harmed.

AsRisks Related ofto ~~December 31, 2014,~~ the Company ~~had~~’s ~~$5,683,223~~Common in notes payable and $1,781,512 in accounts payable and accrued expenses. Our level of indebtedness may adversely affect our ability to obtain additional financing for working capital, capital expenditures, acquisitions and other general corporate purposes and may make us more vulnerable to an economic downturn than our competitors with less debt.Stock

~~Our business and results of operations~~There ~~would~~is benot ~~adversely~~an ~~affected~~active ifliquid wetrading ~~are~~market ~~unable~~for tothe ~~secure~~Company’s ~~reasonably~~common ~~priced insurance that is required for our operations~~stock.

~~Because~~The Company ~~our~~files ~~business~~reports ~~sometimes~~under ~~involves~~ the ~~handling~~Securities ~~and~~Exchange ~~disposal~~Act of ~~hazardous materials~~1934, weas ~~are~~amended ~~required~~(the to“Exchange ~~maintain~~Act”), ~~insurance~~and ~~coverage~~its ~~that~~common ~~can~~stock is bequoted ~~expensive.~~on ~~Our~~the ~~ability to~~OTC ~~continue~~Bulletin ~~conducting~~Board. ~~business~~However, ~~could~~there beis ~~adversely~~no ~~affected~~regular ifactive wetrading ~~should~~market ~~become~~in ~~unable~~the toCompany’s ~~secure~~common ~~sufficient insurance coverage~~stock, and ~~surety~~we ~~bonds~~cannot ~~and~~give ~~financial~~an ~~assurances~~assurance atthat ~~reasonable~~an ~~cost~~active totrading ~~meet~~market ~~our~~will ~~business~~develop. ~~and~~If ~~regulatory~~an ~~requirements.~~active ~~The~~market ~~availability~~for ofthe Company’s common stock ~~insurance~~develops, ~~could~~there beis ~~affected~~a bysignificant ~~factors~~risk ~~outside~~that ofthe ~~our~~Company’s ~~control~~stock asprice ~~well~~may asfluctuate dramatically in the ~~insurers'~~future orin ~~sureties'~~response to ~~assessment~~any of the following factors, some of which are beyond our ~~risk.~~control:

~~The~~● ~~environmental~~variations ~~services industry~~ in ~~which~~our wequarterly ~~participate~~operating isresults; ~~subject~~● toannouncements ~~significant~~that our revenue or income are below analysts’ expectations; ● general economic slowdowns; ● sales of large blocks of the Company’s common stock; ● announcements by us or our competitors of significant contracts, acquisitions, strategic partnerships, joint ventures or capital commitments; and ~~business~~● ~~risks~~fluctuations in stock market prices and volumes.

~~Our future operating results may be~~The ~~affected~~Company byhas ~~such~~not ~~factors~~paid asdividends ~~our ability to win new business and remain competitive~~ in the ~~face~~past ~~of price competition from competitors who are often larger~~ and ~~better~~does ~~capitalized~~not ~~than~~expect ~~us;~~to ~~maintain~~pay ~~and/or~~dividends ~~build market share~~ in anthe ~~industry~~foreseeable ~~that~~future. Any ~~has experienced downsizing~~return ~~and~~on ~~consolidation;~~investment ~~reduce~~may ~~costs~~be ~~without~~limited ~~negatively~~to ~~impacting~~the ~~operations;~~value ~~minimize downtime and disruptions~~ of ~~operations;~~the ~~and weather~~Company’s ~~economic~~common ~~downturns or recessionary conditions~~stock.

ANo cash ~~significant~~dividends ~~portion~~have ofbeen paid on the Company’s common stock. We expect that any income received from operations will be devoted to our future operations and growth. The Company does not expect to pay cash dividends in the near future. Payment of ~~business~~dividends iswould ~~derived~~depend upon our profitability at the time, cash available for those dividends, and other factors as athe ~~result~~Company’s board of ~~events~~directors ~~and~~may ~~circumstances~~consider ~~over~~relevant. ~~which~~If wethe ~~have~~Company nodoes ~~control~~not pay dividends, the Company’s common stock may be less valuable because a return on an investor’s investment will only occur if the Company’s stock price appreciates.

~~Certain services that we provide are~~Our ~~impacted~~management bycontrols ~~events such as increasingly stringent environmental regulations, and seasonal fluctuations due to weather and budgetary cycles influencing~~ the ~~timing~~majority of ~~customers' spending for remedial activities. We do not control such factors and, as a result,~~ our ~~revenue~~outstanding ~~and~~voting ~~income can vary significantly from quarter to quarter and from year to year~~securities. ~~Prior financial performance for certain periods may not be a reliable indicator of future performance for comparable periods in subsequent years.~~

6Our officers and directors control the majority of our voting securities. Therefore, our management will control the outcome of all corporate actions and decisions for an indefinite period of time including election of directors, amendment of charter documents and approval of mergers and other significant corporate transactions.

~~Because our quarterly and annual operating results are difficult to predict and may fluctuate, the market price for our stock may be volatile.~~7

~~Our operating results have fluctuated~~ITEM ~~significantly in the past and may continue to fluctuate significantly in the future~~1B. ~~Fluctuations~~UNRESOLVED inSTAFF ~~operating results may result in volatility of the price of our common stock. These quarterly and annual fluctuations may result from a number of factors, including:~~COMMENTS

~~· the size of new contracts and when we are able to recognize the related revenue;~~Not applicable.

·ITEM 2. ~~our~~PROPERTIES ~~rate of progress under our contracts;~~

·We are headquartered in Crystal Springs, Florida, where we currently occupy 6,000 square feet of office space as well as 6,000 square feet for a mechanic shop and a 12,000 square foot warehouse. The facilities are owned by our President, Clyde A. Biston. Between June and October 2013, the ~~timing~~Company was allowed to use the facilities rent-free. As of ~~customer~~November 1, 2013, the Company entered into a lease agreement with Mr. Biston for rental of the facilities at an annual rent of $180,000 ($15,000 on a monthly basis). On June 1, 2015 Mr. Biston reduced the rent on the Crystal Springs facilities to an annual rent of $90,000 ($7,500 on a monthly basis). Rental expense incurred in 2015 under these lease agreements was $135,000. The Company also pays the property taxes for use of the facilities, and ~~market~~has ~~acceptance~~paid monthly rent of ~~our~~$15,000 ~~product~~since November 1, 2013, and ~~service~~$7,500 ~~offerings;~~monthly since June 1, 2015.

·We also ~~budgeting~~lease ~~cycles~~satellite ofoffices in Davie and Ft. Walton Beach, Florida as well as Chalmette, Louisiana from third parties. Our monthly rent for these facilities in 2015 was $4,980, $2,380 and $750 respectively. We believe our ~~customers;~~facilities are adequate for their intended purposes and have capacities adequate for our current and anticipated needs.

·ITEM 3. ~~the~~LEGAL ~~mix of products and services sold;~~PROCEEDINGS

·As of ~~changes~~December in31, ~~demand~~2015, ~~for~~we ~~our~~were ~~products~~not ~~and~~part ~~services;~~of any material legal proceedings.

·However, a ~~level~~suit ~~and~~was ~~timing~~filed against us in district court of ~~expenses~~Michigan on or about March 16, 2016 by SiteTech, Inc. (“SiteTech”). In this suit, SiteTech alleges negligence by CES for ~~product~~failing ~~development~~to ~~and~~remove ~~sales~~asbestos-containing materials in a timely manner allegedly resulting in damages in excess of $75,000.00. ~~general~~CES ~~and~~plans ~~administrative~~to ~~expenses;~~vigorously contest the allegations made by SiteTech in this suit.

·ITEM 4. ~~competition;~~MINE SAFETY DISCLOSURES.

~~· changes in our strategy; and~~Not applicable.

~~· general economic conditions.~~8

~~Personnel costs are a significant component~~PART of our budgeted expense levels and, therefore, our expenses are, to a degree, variable based upon our expectations regarding future revenue. Our revenue is difficult to forecast because the market for our products and services is rapidly changing, and our sales cycle and the size and timing of significant contracts varies substantially among customers. Accordingly, we may be unable to adjust spending in a timely manner to compensate for any unexpected shortfall in revenue. Any significant shortfall from anticipated levels of demand for our products and services could adversely affect our business, financial condition, results of operations and cash flows.II

~~Based on these factors, we believe~~ITEM ~~our future quarterly and annual operating results may vary significantly from quarter to quarter and year to year~~5. AsMARKET aFOR ~~result, quarter-to-quarter~~REGISTRANT'S ~~and~~COMMON ~~year-to-year comparisons of operating results are not necessarily meaningful nor do they indicate what our future performance will be. Furthermore~~EQUITY, weRELATED ~~believe~~STOCKHOLDER ~~that~~MATTERS inAND ~~future~~ISSUER ~~reporting~~PURCHASES ~~periods~~OF ifEQUITY ~~our operating results fall below the expectations of public market analysts or investors, it is possible that the market price of our common stock could decline.~~SECURITIES

~~Our~~The Company’s ~~business~~common ~~depends~~stock ~~largely~~ is quoted on ~~our~~the ~~ability~~OTC toBulletin ~~attract~~Board under the symbol “CESX.” There was minimal reported trading in the Company’s common stock during the Company’s fiscal years ended December 31, 2015 and ~~retain~~2014, ~~talented~~and ~~employees~~there has been limited reported trading to date in the Company’s common stock.

~~Our ability to manage future expansion,~~The iffollowing ~~any,~~table ~~effectively~~shows will require us to attract, train, motivate and manage new employees successfully, to integrate new management and employees into our overall operations and to continue to improve our operations, financial and management systems. We may not be able to retain personnel or to hire additional personnel on a timely basis, if at all. Because of the ~~complexity~~high and ~~training required~~low inbid ~~certain~~prices offor ~~our services, a significant time lag exists between~~ the ~~hiring~~Company’s ~~date~~common ofstock ~~technical~~for ~~and sales personnel and~~ the ~~time~~quarterly ~~when~~periods ~~they become fully productive~~indicated. ~~Our failure to retain personnel or to hire qualified personnel on a timely basis could~~No ~~adversely~~bid ~~affect~~information ~~our~~is ~~business~~available byfor ~~impacting~~the ~~our~~year ~~ability~~ended toDecember ~~service~~31, ~~certain customers and to secure new contracts~~2014.

We are subject to extensive environmental regulations that may increase our costs and potential liabilities.

	Price
Quarter Ended	High		Low
March 31, 2015	$	1.07	$	0.40
June 30, 2015	$	1.06	$	0.70
September 30, 2015	$	1.14	$	0.06
December 31, 2015	$	0.78	$	0.19

~~The operations~~ As of ~~all~~March ~~companies in the environmental services industry are subject to federal~~30, ~~state~~2016, ~~and~~there ~~local~~were ~~environmental~~approximately ~~requirements.~~44 ~~Although~~holders increasing environmental regulation often presents new business opportunities for us, it also results in increased operating and compliance costs. Efforts to conduct our operations in compliance with all applicable laws and regulations, including environmental rules and regulations, require programs to promote compliance, such as training employees and customers, purchasing health and safety equipment, and in some cases hiring outside consultants. Even with these programs, we and other companies in the environmental services industry are faced with governmental enforcement proceedings, which can result in fines or other sanctions and require expenditures for remedial work. Certain of ~~these~~record ~~laws impose strict and, under certain circumstances, joint and several liability for cleanup~~ of ~~releases~~ ofthe ~~regulated~~Company’s ~~materials,~~common ~~and also liability for related natural resource damages~~stock.

7Dividends

~~At some time in the future we may be~~The ~~required~~Company tohas ~~pay~~never ~~fines~~declared or ~~penalties~~paid ~~due~~any tocash ~~regulatory~~dividends ~~enforcement proceedings and such fines or penalties could have a negative impact~~ on ~~our~~its ~~earnings~~common stock. ~~Additionally,~~The ~~regulatory~~Company ~~authorities~~currently ~~have~~intends ~~the power~~ to ~~suspend~~retain orfuture ~~revoke permits or licenses needed for~~earnings, ~~our~~if ~~operations~~any, ~~which may affect our customers' willingness~~ to dofinance ~~business~~the ~~with~~expansion usof ~~and/or~~its ~~our ability to conduct~~ business. ~~This, in~~As ~~turn,~~a ~~would impact our revenue and profitability. To date~~result, wethe ~~have~~Company ~~never~~does ~~had~~not ~~any~~anticipate ofpaying ~~our operating permits revoked, suspended or non-renewed involuntarily, although it is possible that~~ any ofcash ~~these~~dividends ~~events could occur~~ in the foreseeable future.

~~Changes in environmental regulations~~Securities orAuthorized ~~entry~~for ~~into~~Issuance ~~related~~Under ~~businesses~~Equity ~~may~~Compensation ~~require us to make significant capital expenditures.~~Plans

~~Changes in environmental regulations or our entry into new businesses can require us to make significant capital expenditures~~None. Periodically the government revises rules and regulations regarding the handling and disposal of hazardous substances that requires us and other companies in the environmental services industry to invest in new equipment, training or other areas in order to remain in compliance. Additionally, future environmental regulations and acquisitions could cause us to make significant additional capital expenditures and adversely affect our results of operations and cash flows.

~~If our internal growth objectives~~Sales ~~prove to be inaccurate, our results~~ of ~~operations~~Unregistered ~~could be adversely affected.~~Securities

~~While we believe that increasing environmental~~On ~~regulations~~March ~~and~~12, ~~our~~2014 ~~growing product~~ and ~~services~~November ~~portfolio~~6, ~~provide~~2014, usthe ~~with~~Company ~~ample~~issued ~~growth opportunities~~24,000 itshares ~~is possible that we will not be able to achieve our internal growth objectives due to potentialities such as a lack~~ of ~~growth~~common ~~capital,~~stock ~~intense~~valued ~~competition, regulatory~~at ~~issues,~~$ ~~loss~~1.35 ofper ~~permits and licenses~~share, and ~~other factors. Likewise~~44,000 ~~while we may also seek to grow through acquisition,~~shares itof iscommon ~~possible~~stock ~~that~~valued weat ~~will~~$0.001 beper ~~unable to grow this way due to lack of adequate financing~~share, ~~lack of viable acquisition candidates~~respectively, ~~competition~~ ~~for such acquisitions and other factors. To the extent that our growth objectives prove~~ to bea ~~significantly~~consultant ~~different than~~for ~~actual~~services ~~results, our results of operations could be adversely affected~~rendered.

WeThe Company doissued ~~business~~the following to Type A Partners in astock ~~highly~~purchases: ~~competitive~~(i) 75,000 shares of common stock valued at $2.00 per share ~~industry~~on April 22, 2014, (ii) 37,500 shares of common stock valued at $2.00 per share on May 6, 2014, and ~~compete~~(iii) ~~with~~30,000 ~~companies~~shares ~~that~~of ~~have~~common stock ~~substantially~~valued ~~more~~at ~~resources~~$0.60 ~~that~~on weJune do23, 2015.

~~The environmental services industry~~On isJune ~~highly competitive. Several of the companies with which we compete are larger~~5, ~~offer more services and products~~2014, ~~have~~the ~~better access~~Company toissued ~~growth capital~~25,000 ~~have~~shares ~~larger~~of ~~sales~~common ~~and~~stock ~~marketing~~valued ~~departments~~at ~~and~~$0.001 ~~larger~~per ~~workforces~~shares ~~and~~to ~~other~~a ~~advantages~~consultant ~~that may make it difficult~~ for ~~us to win new business when in competition with them~~services rendered.

WeOn May ~~may~~20, ~~need~~2015, ~~significant~~the ~~additional capital~~Company issued 100,000 ~~which~~shares weof ~~may~~common bestock, ~~unable~~valued at $0. 001 per share, to ~~obtain~~a consultant in exchange for services rendered.

~~We may need to obtain additional financing~~On ~~over~~September ~~time~~10, to2015, ~~fund operations. Management cannot predict~~ the ~~extent~~Company toissued ~~which we will require additional financing~~20,000 ~~and~~shares ~~can~~of ~~provide no~~common ~~assurance~~stock ~~that~~valued ~~additional financing will be available on favorable terms or~~ at ~~all~~$0.001 ~~The~~per ~~rights~~share ~~of the holders of any debt or equity that may be issued in the future could be senior~~ to ~~the~~a ~~rights~~board ~~of shareholders~~member, ~~and~~Luisa ~~any future issuance of equity could~~Ingargiola, ~~result~~ in ~~the~~accordance ~~dilution~~with ofMs. ~~shareholders~~Ingargiola’s ~~proportionate~~board ~~equity interests in the Company~~contract. ~~Failure to obtain financing or obtaining financing on unattractive terms could have a material adverse effect on our business, prospects, results of operations and financial condition.~~

WeIn issuing ~~are~~these ~~dependent~~shares, on the ~~continued services~~Company ~~and~~relied ~~performance~~upon ofthe ~~our~~exemption ~~senior~~from ~~management,~~registration ~~the~~provided ~~loss~~by ofSection ~~any~~4(a)(2) ofunder ~~whom~~the ~~could~~Securities Act ~~adversely~~for ~~affect~~transactions ~~our~~not ~~business,~~involving ~~operating~~a ~~results and~~public ~~financial condition~~offering.

~~Our future performance depends on the~~Issuer ~~continued~~Purchases ~~services and continuing contributions~~ of ~~our~~Equity senior management to execute our business plan, and to identify and pursue new opportunities. The loss of services of senior management, particularly Clyde A. Biston, CES’s founder and our Chief Executive Officer, could significantly delay or prevent the achievement of our strategic objectives. The loss of the services of senior management for any reason could adversely affect our business, prospects, financial condition and results of operations.Securities

8None.

~~A significant portion of our~~ITEM ~~revenue~~6. SELECTED isFINANCIAL ~~dependent upon a small number of customers and the loss of any one of these customers would negatively impact our revenues and our results of operations.~~DATA

~~We derived approximately 29.10% of~~Not ~~our revenues from two customers in 2014 (revenue for one of those customers was earned under eight separate contracts)~~Applicable. ~~If any of our major customers were to terminate or materially reduce their business relationships with us, our operating results would be materially harmed.~~

~~Risks Related to the Company’s Common Stock~~9

~~There~~ITEM 7. isMANAGEMENT'S ~~not~~DISCUSSION anAND ~~active~~ANALYSIS ~~liquid trading~~OF ~~market~~FINANCIAL ~~for~~CONDITION ~~the~~AND ~~Company’s~~RESULTS ~~common~~OF ~~stock.~~OPERATIONS

~~The~~This Item ~~Company~~7, ~~files~~“Management’s ~~reports~~Discussion ~~under~~and ~~the Securities~~Analysis ~~Exchange~~of ~~Act~~Financial Condition and Results of ~~1934~~Operations,” and other parts of this Annual Report on Form 10-K contain forward-looking statements. Forward-looking statements provide current expectations of future events based on certain assumptions and include any statement that does not directly relate to any historical or current fact. Forward-looking statements can also be identified by words such as ~~amended~~“future,” ~~(the~~“anticipates,” “~~Exchange~~believes,” “estimates,” ~~Act~~“expects,”) “intends,” “plans,” “predicts,” “will,” “would,” “could,” “can,” “may,” and ~~its~~similar ~~common~~terms. ~~stock~~Forward-looking isstatements are ~~quoted~~not onguarantees of future performance and the ~~OTC~~Company’s ~~Bulletin~~actual results may differ significantly from the results discussed ~~Board~~in the forward-looking statements. ~~However~~Factors that might cause such differences include, ~~there~~but isare nonot ~~regular~~limited ~~active~~to, ~~trading~~those ~~market~~discussed in Part I, Item 1A of this Annual Report on Form 10-K under the heading “Risk Factors.” The following discussion should be read in conjunction with the ~~Company’s~~consolidated ~~common~~financial ~~stock,~~statements and wenotes ~~cannot~~thereto ~~give~~included anin ~~assurance that~~Part anII, ~~active~~Item ~~trading~~8 ~~market~~of ~~will~~this ~~develop~~Annual Report on Form 10-K. IfAll aninformation ~~active~~presented ~~market~~herein ~~for~~is based on the Company’s ~~common~~fiscal ~~stock~~calendar. ~~develops~~Unless otherwise stated, references ~~there~~to isparticular ayears, ~~significant risk~~quarters, ~~that~~months or periods refer to the Company’s ~~stock~~fiscal ~~price~~years ~~may~~ended ~~fluctuate~~in ~~dramatically~~December inand the associated ~~future~~quarters, inmonths ~~response~~and periods of those fiscal years. The Company assumes no obligation to ~~any~~revise ofor ~~the~~update ~~following~~any ~~factors,~~forward-looking ~~some~~statements offor ~~which~~any ~~are~~reason, ~~beyond~~except ~~our~~as ~~control:~~required by law.

·Overview and ~~variations in our quarterly operating results;~~Highlights

·The Company ~~announcements~~provides ~~that~~asbestos ~~our~~abatement ~~revenue~~and orremoval, ~~income~~demolition, ~~are~~and ~~below~~mold ~~analysts’~~remediation ~~expectations~~services primarily in the USA. The services we provide include the removal of asbestos, lead and other hazardous materials from structures ranging from residences to commercial and industrial applications, including secure defense contractor facilities, colleges, hospitals, and mid-rise and high-rise buildings and residential structures. The Company provides demolition and wrecking services, including the removal of storage tanks; mechanical insulation; duct/mold and indoor air quality services; land clearing; and on-site crushing and recycling. In the public sector, our customers include city, state, and federal agencies. Our private-sector customers include general contractors, developers, project owners, and industrial and commercial clients.

·We report ~~general~~results ~~economic~~under ~~slowdowns;~~ASC 280, Segment Reporting, for three segments: remediation, demolition and insulation. Remediation 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. Insulation derives its revenue from re-insulation and insulation of new and remodeling projects. After careful analysis of our operations following the business slowdown in 2011, management made the decision to scale down the less profitable demolition division and refocus efforts on more profitable businesses in asbestos, mold, and lead remediation, and interior demolition. We will continue to provide demolition services where they are a natural spinoff of our other work. The decision created an excess of machinery and heavy equipment that was not being used, which we sold in 2012.

~~· sales of large blocks of the Company’s common stock;~~Service Contracts

·For our ~~announcements~~asbestos byabatement, usdemolition, orand ~~our~~mold ~~competitors~~remediation ofcontracts, ~~significant~~we ~~contracts~~typically agree to provide all labor, ~~acquisitions~~supervision, ~~strategic~~material and ~~partnerships~~equipment required to perform hazardous material abatement and disposal work as required. Our interior demolition and certain exterior demolition contracts do not contain “hazardous material abatement” provisions. In the absence of such provisions, ~~joint~~the ~~ventures~~Company is not contractually responsible for the elimination or ~~capital~~reduction ~~commitments;~~of polluting or hazardous substances such as asbestos, lead paint, polychlorinated biphenyls (PCB) in building materials, mold, fluorescent and high intensity discharge (HID) lamps, mercury, PCB ballasts, lead-acid battery electrolytes, fluorocarbons, equipment coolant, hydraulic fluids, and petroleum products. Our demolition contracts generally require us to provide all labor, supervision, material and equipment required for demolition and clearance on specified properties.

·We operate ~~fluctuations~~primarily through a bid submission and award process to various public and government entities. Bids specify terms and conditions of contracting. We do not write our contracts. Our customers dictate contract language, payment terms, and in ~~stock~~most ~~market~~cases ~~prices~~the timing of and ~~volumes~~forms used for billing. When we bid on a project, we agree to these terms which are included in the bid specifications. Since the inception of CES in 1988, we have not been required to make any penalty payments to our customers or incurred post-contractual costs under contractual commitments. Many of our equipment supply, local design, and installation subcontracts contain provisions that enable us to seek recourse against our vendors or subcontractors if there is a deficiency in their commitments.

~~The~~Payments to ~~Company~~us ~~has~~by ~~not paid dividends in~~ the ~~past~~federal ~~and~~government ~~does~~are ~~not~~based ~~expect~~on tothe ~~pay~~services ~~dividends~~provided inand the ~~foreseeable~~products ~~future. Any~~installed, ~~return~~calculated onin ~~investment~~accordance ~~may~~with ~~be limited~~federal toregulatory ~~the~~guidelines ~~value~~and of the ~~Company~~specific contract’s ~~common stock~~terms.

~~No cash dividends have been paid on~~To ~~the~~mitigate ~~Company’s~~contractual ~~common~~performance ~~stock.~~risks, Wewe ~~expect~~have ~~that~~created ~~any~~and ~~income~~invested ~~received~~in ~~from~~processes ~~operations~~and ~~will~~systems beto ~~devoted~~ensure tothat our ~~future~~project ~~operations~~managers ~~and~~bid ~~growth.~~in ~~The~~compliance ~~Company~~with ~~does~~project ~~not~~specifications, ~~expect~~perform tosite ~~pay~~inspections, ~~cash~~and ~~dividends~~participate in ~~the~~pre-bid ~~near future~~meetings. Our ~~Payment~~bidding process oftakes ~~dividends~~into ~~would~~account ~~depend~~a ~~upon~~specified ~~our~~list ~~profitability at~~of ~~the time~~variables, ~~cash~~which ~~available~~we ~~for~~have ~~those~~developed ~~dividends,~~ and ~~other~~fine-tuned ~~factors~~over as25 ~~the~~years ~~Company’s~~of ~~board~~doing ofbusiness, to ~~directors~~ensure ~~may~~that ~~consider~~we ~~relevant. If~~achieve ~~the~~our ~~Company~~performance ~~does~~and ~~not~~financial ~~pay~~goals ~~dividends,~~for ~~the~~each ~~Company’s~~contract. ~~common~~Project ~~stock~~managers ~~may~~are betrained ~~less~~in ~~valuable~~our ~~because~~bidding aprocess, and ~~return~~bids ongreater anthan ~~investor’s investment~~$200,000 ~~will~~are ~~only~~reviewed ~~occur~~and ifapproved ~~the~~by ~~Company’s~~a ~~stock~~senior ~~price~~management ~~appreciates~~team before submission.

~~Our management controls the majority of our outstanding voting securities.~~10

~~Our~~Tracking of ~~officers~~job ~~and~~costs ~~directors~~to ~~control the~~manage ~~majority~~financial ofrisk ~~our~~is ~~voting~~paramount ~~securities~~at CES. Through ~~Therefore~~a Company-developed cost accounting system, ~~our~~jobs are ~~management~~tracked ~~will~~not ~~control~~only ~~the~~by ~~outcome~~phase (i.e., type of ~~all~~work) ~~corporate~~but ~~actions~~also ~~and~~according ~~decisions~~to fifteen separate job cost codes that the Company has identified as essential for aneffective ~~indefinite~~project ~~period~~management. These ofcost ~~time~~codes ~~including~~are ~~election~~mapped ofto ~~directors~~our bidding system, ~~amendment~~thereby allowing ofus ~~charter~~to ~~documents~~track ~~and~~the ~~approval~~financial performance of ~~mergers~~all contract phases and ~~other significant~~to ~~corporate~~ensure ~~transactions~~that potential cost overruns can be identified and mitigated.

~~ITEM~~Job costing 1Bis fully integrated between all modules of our accounting system, which include accounts payable, accounts receivable, payroll, and inventory. Direct ~~UNRESOLVED~~job ~~STAFF~~costs ~~COMMENTS~~include: labor (not drivers), driver labor, materials, subcontractors, labor service, job site costs (e.g., permits and rental equipment), dump fees (landfill), travel expenses, temporary lodgings, jobsite fuel, bonding costs, inspection fees (Department of Environmental Protection, etc.), testing/lab fees, workers’ compensation (by workers’ compensation classification), and indirect costs (which include costs indirectly incurred such as vehicle insurance, repairs and maintenance, fuel and oil).

~~Not~~We review ~~applicable~~job costs twice each month while contracts are in progress, and calculate and review final job cost at the completion of each job. Problems are reviewed at weekly meetings. Project managers regularly check on their jobs to monitor progress and man-hours. This process has now been enhanced with the addition of a cloud based project management system that has been implemented throughout all Company locations.

~~ITEM~~To maintain 2control of contract bids and implementation, senior management holds weekly reviews with project managers, covering job bidding, job awards, upcoming bids and contracts, etc. Regular ~~PROPERTIES~~accounts receivable and collections reviews are also held as part of the management process.

~~We are headquartered in Crystal Springs,~~Financial ~~Florida,~~Operations where we occupy 6,000 square feet of office space as well as 6,000 square feet for a mechanic shop and a 12,000 square foot warehouse. The facilities are owned by our Chief Executive Officer, Clyde A. Biston. Between June and October 2013, the Company was allowed to use the facilities rent-free. As of November 1, 2013, the Company entered into a lease agreement with Mr. Biston for rental of the facilities at an annual rent of $180,000. Rental expense incurred in 2014 under this lease agreement was $180,000. The Company also pays the property taxes for use of the facilities, and has paid monthly rent of $15,000 since November 1, 2013.Overview

9Revenue

We derive ~~also~~revenue ~~lease~~from ~~satellite~~the ~~offices~~provision ~~in Davie~~of ~~and~~asbestos ~~Ft.~~abatement, ~~Walton Beach~~demolition, ~~Florida~~and asmold ~~well~~remediation asservices ~~Chalmette~~to city, ~~Louisiana.~~state, ~~Our~~and ~~monthly~~federal agencies. We ~~rent~~also ~~for~~sell ~~these~~services ~~facilities~~to ingeneral ~~2014~~contractors, ~~was~~developers, $4project owners,~~848, $2,293,~~ and ~~$750~~industrial ~~respectively.~~and Wecommercial ~~believe~~clients. Much of our ~~facilities~~work ~~are~~has ~~adequate~~been ~~for~~founded ~~their~~on ~~intended~~the ~~purposes~~removal ~~and~~of ~~have~~hazardous ~~capacities~~materials ~~adequate for~~from ~~our~~structures ~~current~~ranging from residences to commercial and ~~anticipated~~industrial ~~needs~~applications.

~~ITEM~~While in 3any particular quarter a single customer may account for more than ten percent of revenue, for the year ended December 31, 2015, the Renu Asset Recovery, the general contractor for the DTE Energy power plant project in Michigan, and the FDOT, accounted for 23.1% ~~LEGAL~~and ~~PROCEEDINGS~~19.6% of our total revenue, respectively. For the year ended December 31, 2014, the Renu Asset Recovery, the general contractor for the DTE Energy power plant project in Michigan, and the FDOT, accounted for 13.9% and 15.2% of our total revenue, respectively.

WeDirect Expenses ~~are~~and ~~not~~Gross ~~party to any material legal proceedings.~~Margin

~~ITEM~~Direct expenses 4include the cost of labor, materials, equipment, subcontracting and outside engineering that are required for the execution our contracts, as well as preconstruction costs, sales incentives, associated travel, inventory obsolescence charges, and amortization of intangible assets related to customer contracts. ~~MINE~~A ~~SAFETY~~majority ~~DISCLOSURES~~of our contracts have fixed price terms; however, in some cases we negotiate protections, such as a cost-plus structure, to mitigate the risk of rising prices for materials, services and equipment.

~~Not~~Gross margin, ~~applicable~~which is gross profit as a percent of revenue, is affected by a number of factors, including the type of services performed and the geographic region in which the sale is made. Geographic location impacts the cost of disposal, lodging, and fuel. We sometimes find ourselves bidding against local contractors. In these instances, we may be willing to accept a lower profit margin in order to establish ourselves with a new client, or in a new geographic location.

~~PART~~Rising fuel IIcosts affect us in several ways. Fuel in our trucks and equipment has an immediate cost impact. Increases in petroleum prices increase the costs for remediation due because petroleum products are used to make all poly, bags, etc. that we use for contaminated materials containment.

~~ITEM~~In addition, 5gross margin frequently varies across the period of a project. ~~MARKET~~Our ~~FOR~~expected ~~REGISTRANT'S~~gross ~~COMMON~~margin ~~EQUITY~~on, ~~RELATED~~and ~~STOCKHOLDER~~expected ~~MATTERS~~revenue ~~AND~~for, a ~~ISSUER~~project ~~PURCHASES~~are OFbased ~~EQUITY~~on ~~SECURITIES~~budgeted costs. From time to time, a portion of the contingencies reflected in budgeted costs are not incurred due to strong execution performance. In that case, and generally at project completion, we recognize revenue for which there is no further corresponding direct expense. As a result, gross margin tends to be back-loaded for projects with strong execution performance; this explains the gross margin improvement that occurs from time to time at project closeout. We refer to this gross margin improvement at the time of project completion as a project closeout.

The Company’s common stock is quoted on the OTC Bulletin Board under the symbol “CESX.” There was minimal reported trading in the Company’s common stock during the Company’s fiscal years ended December 31, 2014 and 2013, and there has been limited reported trading to date in the Company’s common stock.11

~~The following table shows the high~~Operating ~~and low bid prices for the Company’s common stock for the quarterly periods indicated. No bid information is available for the year ended December 31, 2013.~~Expenses

	Price
Quarter Ended	High		Low
March 31, 2014	$	2.55	$	1.00
June 30, 2014	$	2.71	$	0.20
September 30, 2014	$	1.23	$	0.23
December 31, 2014	$	1.15	$	0.07

Operating expenses consist of salaries and benefits, project development costs, and general, administrative and other expenses.

AsSalaries and benefits. Salaries and benefits consist primarily of ~~March~~expenses 17for personnel not directly engaged in specific revenue generating activity. These expenses include the time of executive management, ~~2015~~legal, ~~there~~finance, ~~were~~accounting, ~~approximately~~human 52resources, ~~holders~~information technology ofand other staff not utilized in a particular project. We employ a comprehensive time card system which creates a contemporaneous record of the ~~Company’s~~actual ~~common~~time ~~stock~~by employees on project activity.

~~Dividends~~Project development costs. Project development costs consist primarily of sales, engineering, legal, finance and third-party expenses directly related to the development of a specific customer opportunity. This also includes associated travel and marketing expenses.

~~The Company has never declared or paid~~General, ~~any~~administrative ~~cash~~and ~~dividends~~other ~~on its common stock~~expenses. ~~The~~These ~~Company~~expenses ~~currently~~consist ~~intends~~primarily toof ~~retain~~rents ~~future~~and ~~earnings~~occupancy, ifprofessional ~~any~~services, toinsurance, unallocated ~~finance~~travel ~~the~~expenses, ~~expansion of~~telecommunications, ~~its~~and ~~business~~office expenses. AsProfessional aservices ~~result,~~consist ~~the~~principally ~~Company~~of ~~does~~recruiting costs, ~~not~~external ~~anticipate~~legal, ~~paying~~audit, ~~any~~tax ~~cash~~and ~~dividends~~other inconsulting ~~the foreseeable future~~services.

~~Securities~~Other expenses, ~~Authorized~~net. ~~for~~Other ~~Issuance~~expenses, net consists primarily of interest income on cash balances, interest expense on borrowings, ~~Under~~and ~~Equity~~gains ~~Compensation~~and ~~Plans~~losses on the disposal of surplus assets. Interest expense will vary periodically depending on prevailing short-term interest rates.

~~None.~~Critical Accounting Policies

~~Sales~~The preparation of ~~Unregistered~~financial ~~Securities~~statements and related disclosures in conformity with U.S. generally accepted accounting principles (“GAAP”) and the Company’s discussion and analysis of its financial condition and operating results require the Company’s management to make judgments, assumptions, and estimates that affect the amounts reported in its consolidated financial statements and accompanying notes. Note 1, “Summary of Significant Accounting Policies” of the Notes to Consolidated Financial Statements in Part II, Item 8 of this Annual Report on Form 10-K describes the significant accounting policies and methods used in the preparation of the Company’s consolidated financial statements. Management bases its estimates on historical experience and on various other assumptions it believes to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities.

OnWe have ~~November~~identified 6,the ~~2014,~~policies below as critical to our business operations and the ~~Company~~understanding ~~issued 44,000~~of ~~shares~~our results of ~~common~~operations. The ~~stock,~~Company’s ~~valued~~senior atmanagement $0has reviewed these critical accounting policies and related disclosures with the Company’s Board of Directors.85 ~~per~~The ~~share,~~impact and any associated risks related to athese ~~consultant~~policies inon ~~exchange~~our ~~for~~business ~~services~~operations ~~rendered~~are discussed throughout this section where such policies affect our reported and expected financial results. InOur ~~issuing~~preparation ~~these~~of financial statements requires ~~shares,~~us ~~the~~to ~~Company~~make ~~relied~~estimates ~~upon~~and assumptions that affect the ~~exemption~~reported ~~from~~amounts ~~registration~~of ~~provided~~assets byand ~~Section~~liabilities, ~~4(a)(2)~~disclosure ~~under~~of contingent assets and liabilities at the ~~Securities~~date ~~Act~~of ~~for~~our ~~transactions~~financial statements, and the reported amounts of revenues and expenses during the reporting period. There can be no assurance that actual results will not ~~involving~~differ afrom ~~public~~those ~~offering~~estimates and such differences may be material.

~~Issuer~~Cash and ~~Purchases~~Cash ~~of Equity Securities~~Equivalents

~~None~~We consider all highly liquid debt instruments and other short-term investments with maturity of three months or less to be cash equivalents.

~~ITEM 6. SELECTED FINANCIAL DATA~~Contracts Receivable

~~Not~~Contracts receivable ~~Applicable~~are stated at the amounts management expects to collect from outstanding balances. Management provides for probable uncollectible amounts through a charge to earnings and a credit to a valuation allowance based on its assessment of the current status of individual accounts. Balances outstanding after management has used reasonable collection efforts are written off through a charge to the valuation allowance and a credit to trade contracts receivable. Management has determined that an allowance of $201,000 for doubtful accounts at December 31, 2015 and December 31, 2014 was required.

10Contracts receivable will generally be due within 30 to 45 days and collateral is not required.

~~ITEM~~Cost and 7.Estimated ~~MANAGEMENT'S~~Earnings ~~DISCUSSION~~in ~~AND~~Excess ~~ANALYSIS~~of OFBillings ~~FINANCIAL~~on ~~CONDITION~~Uncompleted ~~AND RESULTS OF OPERATIONS~~Contracts

~~This Item 7, “Management’s~~The ~~Discussion and Analysis of Financial Condition and Results of Operations~~asset,” ~~and~~"Costs ~~other parts of this Annual Report on Form 10-K contain forward-looking statements. Forward-looking statements provide current expectations of future events based on certain assumptions~~ and ~~include~~estimated ~~any~~earnings statement that does not directly relate to any historical or current fact. Forward-looking statements can also be identified by words such as “future,” “anticipates,” “believes,” “estimates,” “expects,” “intends,” “plans,” “predicts,” “will,” “would,” “could,” “can,” “may,” and similar terms. Forward-looking statements are not guarantees of future performance and the Company’s actual results may differ significantly from the results discussed in ~~the~~excess ~~forward-looking statements. Factors that might cause such differences include, but are not limited to, those discussed in Part I, Item 1A~~ of ~~this Annual~~billings ~~Report~~ on ~~Form~~uncompleted ~~10-K under the heading “Risk Factors.” The following discussion should be read in conjunction with the consolidated financial statements and notes thereto included in Part II~~contracts," ~~Item~~represents 8revenues ~~of this Annual Report on Form 10-K. All~~recognized information presented herein is based on the Company’s fiscal calendar. Unless otherwise stated, references to particular years, quarters, months or periods refer to the Company’s fiscal years ended in ~~December~~excess ~~and the associated quarters, months and periods~~ of ~~those~~amounts ~~fiscal years~~billed. ~~The Company assumes no obligation to revise or update any forward-looking statements for any reason, except as required by law.~~

~~Overview~~The liability, "Billings in excess of costs and ~~Highlights~~estimated earnings on uncompleted contracts," represents billings in excess of revenues recognized.

The Company provides asbestos abatement and removal, demolition, and mold remediation services primarily in the USA. The services we provide include the removal of asbestos, lead and other hazardous materials from structures ranging from residences to commercial and industrial applications, including secure defense contractor facilities, colleges, hospitals, and mid-rise and high-rise buildings and residential structures. The Company provides demolition and wrecking services, including the removal of storage tanks; mechanical insulation; duct/mold and indoor air quality services; land clearing; and on-site crushing and recycling. In the public sector, our customers include city, state, and federal agencies. Our private-sector customers include general contractors, developers, project owners, and industrial and commercial clients.12

~~We report~~Recoverability ~~results under ASC 280, Segment Reporting, for three segments: remediation, demolition and insulation. Remediation 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. Insulation derives its revenue from re~~Long-~~insulation~~Lived and insulation of new and remodeling projects. After careful analysis of our operations following the business slowdown in 2011, management made the decision to scale down the less profitable demolition division and refocus efforts on more profitable businesses in asbestos, mold, and lead remediation, and interior demolition. We will continue to provide demolition services where they are a natural spinoff of our other work. The decision created an excess of machinery and heavy equipment that was not being used, which we sold in 2012.Assets

~~Service~~We review ~~Contracts~~the recoverability of long-lived assets on a periodic basis whenever events and changes in circumstances have occurred which may indicate a possible impairment. The assessment for potential impairment is based primarily on our ability to recover the carrying value of our long-lived assets from expected future cash flows from our operations on an undiscounted basis. If such assets are determined to be impaired, the impairment recognized is the amount by which the carrying value of the assets exceeds the fair value of the assets. Fixed assets to be disposed of by sale are carried at the lower of the then current carrying value or fair value less estimated costs to sell.

~~For our asbestos abatement, demolition,~~Fair ~~and~~Value mold remediation contracts, we typically agree to provide all labor, supervision, material and equipment required to perform hazardous material abatement and disposal work as required. Our interior demolition and certain exterior demolition contracts do not contain “hazardous material abatement” provisions. In the absence of ~~such~~Financial provisions, the Company is not contractually responsible for the elimination or reduction of polluting or hazardous substances such as asbestos, lead paint, polychlorinated biphenyls (PCB) in building materials, mold, fluorescent and high intensity discharge (HID) lamps, mercury, PCB ballasts, lead-acid battery electrolytes, fluorocarbons, equipment coolant, hydraulic fluids, and petroleum products. Our demolition contracts generally require us to provide all labor, supervision, material and equipment required for demolition and clearance on specified properties.Instruments

11The carrying amount reported in the balance sheets for cash and cash equivalents, contracts receivable, accounts payable, and accrued expenses approximate fair value because of the immediate or short-term maturity of these financial instruments. We do not utilize derivative instruments.

~~We operate primarily through a bid~~Revenue ~~submission~~ and ~~award~~Cost process to various public and government entities. Bids specify terms and conditions of contracting. We do not write our contracts. Our customers dictate contract language, payment terms, and in most cases the timing of and forms used for billing. When we bid on a project, we agree to these terms which are included in the bid specifications. Since the inception of CES in 1988, we have not been required to make any penalty payments to our customers or incurred post-contractual costs under contractual commitments. Many of our equipment supply, local design, and installation subcontracts contain provisions that enable us to seek recourse against our vendors or subcontractors if there is a deficiency in their commitments.Recognition

~~Payments~~The Company torecognizes usrevenues byfrom ~~the~~fixed-price ~~federal~~and ~~government are~~modified ~~based~~fixed-price construction contracts on the ~~services~~percentage-of-completion ~~provided~~method, measured ~~and~~by the ~~products~~percentage ~~installed,~~of ~~calculated~~cost inincurred ~~accordance~~to ~~with~~date ~~federal~~to ~~regulatory~~estimated ~~guidelines~~total ~~and~~cost for each contract. This method is used because management considers total cost to be the ~~specific~~best ~~contract’s~~available ~~terms~~measure of progress on the contracts.

~~To mitigate contractual performance~~Contract ~~risks,~~costs weinclude ~~have~~all ~~created~~direct material and ~~invested~~labor incosts ~~processes~~ and ~~systems~~those toindirect ~~ensure~~costs ~~that~~related ~~our~~to ~~project~~contract ~~managers~~performance, ~~bid~~such inas ~~compliance~~indirect ~~with project~~labor, ~~specifications~~supplies, ~~perform~~tools, ~~site inspections~~repairs, and ~~participate in pre-bid meetings~~depreciation. ~~Our bidding process takes into account a specified list of variables~~Selling, ~~which we have developed and fine-tuned over 25 years of doing business~~general, ~~to ensure that we achieve our performance~~ and ~~financial~~administrative ~~goals~~costs ~~for each contract. Project managers~~ are ~~trained~~charged into ~~our~~expenses ~~bidding~~as ~~process, and bids greater than $200,000 are reviewed and approved by a senior management team before submission~~incurred.

~~Tracking of job costs to manage financial~~Provisions ~~risk~~for isestimated ~~paramount~~losses aton ~~CES. Through~~uncompleted acontracts, ~~Company-developed~~if ~~cost accounting system~~any, ~~jobs~~ are ~~tracked~~made ~~not~~in ~~only by phase (i.e., type of work) but also according to fifteen separate job cost codes that~~ the ~~Company~~period ~~has~~in ~~identified~~which assuch ~~essential~~losses ~~for~~are ~~effective project management~~determined. ~~These~~Changes in ~~cost~~job ~~codes~~performance, ~~are~~job ~~mapped~~conditions, toand ~~our~~estimated ~~bidding~~profitability ~~system,~~may ~~thereby~~result ~~allowing~~in usrevisions to ~~track~~costs ~~the financial performance of all contract phases~~ and toincome, ~~ensure~~which ~~that~~are ~~potential~~recognized in ~~cost~~the ~~overruns~~period ~~can~~in bewhich ~~identified~~the ~~and~~revisions ~~mitigated~~are determined.

~~Job costing is fully integrated between~~The ~~all modules of our accounting system~~asset, ~~which~~"Costs ~~include accounts payable, accounts receivable, payroll,~~ and ~~inventory. Direct job~~estimated ~~costs~~earnings ~~include: labor~~in ~~(not~~excess ~~drivers),~~of ~~driver~~billings ~~labor,~~on ~~materials,~~uncompleted ~~subcontractors~~contracts," ~~labor~~represents ~~service,~~revenues ~~job site costs (e.g.,~~recognized ~~permits~~in ~~and~~excess ~~rental equipment), dump fees (landfill), travel expenses, temporary lodgings, jobsite fuel, bonding costs, inspection fees (Department~~ of ~~Environmental~~amounts ~~Protection, etc~~billed.), testing/lab fees, workers’ compensation (by workers’ compensation classification), and indirect costs (which include costs indirectly incurred such as vehicle insurance, repairs and maintenance, fuel and oil).

~~We review job costs twice each month~~The ~~while~~liability, ~~contracts~~"Billings ~~are~~ in ~~progress,~~excess ~~and~~of ~~calculate~~costs and ~~review~~estimated ~~final~~earnings ~~job~~on ~~cost~~uncompleted atcontracts," ~~the~~represents ~~completion~~billings ofin ~~each job. Problems are~~excess ~~reviewed~~of atrevenues ~~weekly meetings~~recognized. ~~Project managers regularly check on their jobs to monitor progress and man-hours.~~

~~To maintain control of contract bids~~Contract ~~and~~retentions ~~implementation, senior management holds weekly reviews with project managers, covering job bidding, job awards, upcoming bids and contracts, etc. Regular accounts receivable and collections reviews~~ are ~~also~~included ~~held~~in ascontract ~~part of the management process~~receivables.

~~Financial~~Net Earnings ~~Operations~~(Loss) ~~Overview~~Per Share of Common Stock

~~Revenue~~The basic net earnings (loss) per common share is computed by dividing the net earnings (loss) by the weighted average number of common shares outstanding. Diluted net earnings (loss) per share gives effect to all dilutive potential common shares outstanding during the period using the “as if converted” basis.

~~We derive revenue from the provision~~Uncertainty ofin ~~asbestos~~Income abatement, demolition, and mold remediation services to city, state, and federal agencies. We also sell services to general contractors, developers, project owners, and industrial and commercial clients. Much of our work has been founded on the removal of hazardous materials from structures ranging from residences to commercial and industrial applications.Taxes

~~While~~Management considers inthe ~~any~~likelihood ~~particular~~of ~~quarter~~changes aby ~~single customer~~taxing ~~may~~authorities ~~account~~in ~~for~~its ~~more~~filed ~~than~~income ~~ten~~tax ~~percent~~returns ofand ~~revenue,~~recognizes a liability for ~~the~~or ~~year~~discloses potential ~~ended~~changes ~~December~~that ~~31,~~management ~~2014,~~believes ~~the~~are ~~Renu~~more ~~Asset~~likely ~~Recovery,~~than ~~the general~~not ~~contractor~~to ~~for~~occur ~~the~~upon ~~DTE~~examination ~~Energy~~by ~~power~~tax ~~plant~~authorities. Management has ~~project~~not inidentified ~~Michigan,~~any ~~and~~uncertain ~~the~~tax ~~FDOT,~~positions ~~accounted~~in ~~for~~filed ~~13.9%~~income ~~and~~tax ~~15.2%~~returns ofthat ~~our~~require ~~total revenue,~~recognition ~~respectively~~or disclosure. ~~For~~The ~~the~~Company’s income ~~year~~tax ~~ended~~returns ~~December~~for ~~31,~~the ~~2013,~~past ~~the~~three ~~FDOT~~years ~~was~~are ~~16.2%~~subject ofto ~~our~~examination ~~total~~by ~~revenue~~tax authorities, and ~~Sarasota~~may ~~County~~change ~~Schools were~~upon 11examination.~~4%.~~

12We follow ASC 740-10, Accounting for Uncertainty in Income Taxes (“ASC 740-10”). This interpretation requires recognition and measurement of uncertain income tax positions using a “more-likely-than-not” approach. ASC 740-10 is effective for fiscal years beginning after December 15, 2006. Management has adopted ASC 740-10 and evaluates our tax positions on an annual basis.

~~Direct~~Prior to ~~Expenses~~November ~~and~~1, ~~Gross~~2013, ~~Margin~~CES had elected by unanimous consent of its shareholders to be taxed under the provisions of subchapter S of the Internal Revenue Code. Under those provisions, CES did not pay federal or state corporate income taxes on its taxable income. Instead, the shareholders of CES were liable for individual federal income taxes on their respective shares of CES’s taxable income. Since the closing of the Merger on November 1, 2013, the Company is responsible for paying corporate income tax.

~~Direct expenses include the cost of~~Advertising labor, materials, equipment, subcontracting and outside engineering that are required for the execution our contracts, as well as preconstruction costs, sales incentives, associated travel, inventory obsolescence charges, and amortization of intangible assets related to customer contracts. A majority of our contracts have fixed price terms; however, (in ~~some cases we negotiate protections~~thousands, ~~such~~except ~~as a cost-plus structure, to mitigate the risk of rising prices for materials, services and equipment.~~percentages)

~~Gross margin, which is gross profit~~Advertising ascosts aare ~~percent~~expensed ofwhen ~~revenue,~~incurred. isAdvertising ~~affected~~costs byfor a2015 ~~number~~and of2014 ~~factors,~~were ~~including~~$25 ~~the type of services performed~~ and ~~the~~$8, ~~geographic region in which the sale is made~~respectively. ~~Geographic~~ ~~location~~Historically, ~~impacts~~ the ~~cost~~Company has ofnot ~~disposal,~~relied ~~lodging,~~on advertising and ~~fuel. We~~marketing ~~sometimes find~~to ~~ourselves~~generate ~~bidding against local contractors~~business. In ~~these~~We ~~instances,~~recently wehired ~~may be willing to accept~~ a ~~lower~~marketing/sales ~~profit~~manager ~~margin in order~~ to ~~establish~~expand ~~ourselves~~our ~~with a new client, or in a new geographic location~~marketing activities.

Rising fuel costs affect us in several ways. Fuel in our trucks and equipment has an immediate cost impact. Increases in petroleum prices increase the costs for remediation due because petroleum products are used to make all poly, bags, etc. that we use for contaminated materials containment.13

~~In addition, gross margin frequently~~Results ~~varies across the period~~ of aOperations ~~project. Our expected gross margin on, and expected revenue for, a project are based on budgeted costs. From time to time, a portion of the contingencies reflected~~ (in ~~budgeted costs are not incurred due to strong execution performance. In that case~~thousands, ~~and~~except generally at project completion, we recognize revenue for which there is no further corresponding direct expense. As a result, gross margin tends to be back-loaded for projects with strong execution performance; this explains the gross margin improvement that occurs from time to time at project closeout. We refer to this gross margin improvement at the time of project completion as a project closeout.percentages)

~~Operating~~Year Ended ~~Expenses~~December 31, 2015 Compared to Year Ended December 31, 2014

~~Operating~~Net sales ~~expenses~~decreased ~~consist~~on ofan ~~salaries~~aggregate basis among all segments, 10%, or $2,118, during the year ended December 31, 2015 compared to ~~and~~the ~~benefits~~year ended December 31, ~~project~~2014. ~~development~~Revenues ~~costs~~in the Demolition segment decreased by $1,134, ~~and~~or ~~general~~11%, ~~administrative~~during ~~and~~the ~~other~~year ~~expenses~~ended December 31, 2015 compared to the year ended December 31, 2014. Revenues in the Remediation segment decreased by $956, or 10%, during the year ended December 31, 2015 compared to the year ended December 31, 2014. The Insulation segment experienced an $83 decrease in revenue, or 15%, during the year ended December 31, 2015 compared to the year ended December 31, 2014.

~~Salaries~~The decrease ~~and~~in ~~benefits.~~Demolition ~~Salaries and~~segment ~~benefits~~revenues ~~consist~~was primarily ofattributable ~~expenses~~to ~~for~~the ~~personnel~~near ~~not~~completion ~~directly~~of ~~engaged~~the inlarger ~~specific~~St. ~~revenue~~Bernard ~~generating~~Parish ~~activity.~~projects in ~~These~~Louisiana, ~~expenses include~~and the ~~time~~completion of ~~executive~~two ~~management,~~major ~~legal,~~contracts ~~finance,~~in ~~accounting,~~Florida. ~~human~~At ~~resources~~December 31, ~~information~~2015, ~~technology~~35 ~~and~~Demolition ~~other~~segment ~~staff not~~contracts ~~utilized~~ valued in aexcess ~~particular~~of ~~project~~$4.6 Wemillion ~~employ~~were ain ~~comprehensive~~progress. ~~time~~Remediation ~~card~~segment ~~system~~sales ~~which~~decreased ~~creates~~in a2015, ~~contemporaneous~~primarily ~~record~~because of the lower revenues ~~actual~~from ~~time~~remediation contracts in Florida and with the DTE Power Plant in Michigan. The decline in Insulation segment revenue was due primarily to lower maintenance spending by ~~employees~~a onlarge ~~project~~supermarket ~~activity~~chain in the southeastern United States.

~~Project~~Revenues were ~~development~~more ~~costs.~~heavily ~~Project development~~concentrated ~~costs~~in ~~consist~~Florida ~~primarily~~in 2015 as a result of ~~sales~~new contract wins in the state, ~~engineering~~including demolition contracts at Florida State University in Tallahassee (valued at $882), ~~legal~~Jacksonville Naval Air Station (valued at $1,624 ~~finance~~) and ~~third-party~~with ~~expenses~~the ~~directly~~FDOT (valued ~~related~~at to$3,139), and remediation/demolition contracts continuing at the ~~development~~Daytona Speedway (valued at $1,147), Forts Benning and Stewart in Georgia (valued at $887) the Federal Courthouse in Jacksonville (valued at $376), Hill Middle School (valued at $367), and the continuation of athe ~~specific~~DTE ~~customer~~Power ~~opportunity~~Plant in Marysville, Michigan (valued at $3,554). ~~This~~The Daytona Speedway contract will also ~~includes~~have ~~associated~~had ~~travel~~a ~~and~~significant ~~marketing~~scrap ~~expenses~~revenue stream that will cover provided a portion of our funding of startup costs for the contract.

~~General,~~Management plans ~~administrative~~to ~~and~~address ~~other expenses.~~the ~~These~~2015 ~~expenses~~decline ~~consist~~in ~~primarily~~revenues with a plan of ~~rents~~operations for 2016 that includes an expansion of regional presence through organic growth and ~~occupancy,~~acquisitions ~~professional~~(should ~~services,~~funding ~~insurance~~become available), ~~unallocated~~expansion ~~travel~~into ~~expenses,~~additional states to ~~telecommunications~~broaden the Company’s geographic footprint, ~~and~~growth ~~office~~of ~~expenses.~~government ~~Professional~~business ~~services~~through ~~consist~~state ~~principally~~and offederal ~~recruiting~~IDIQ ~~costs~~opportunities, the ~~external~~acquisition ~~legal,~~of ~~audit~~complementary businesses targeted to enhance the geographic footprint, ~~tax~~ and ~~other~~a ~~consulting~~focus ~~services~~on increasing revenues and margins in our core business lines.

~~Other expenses, net. Other expenses,~~Sales net consists primarily of interest income on cash balances, interest expense on borrowings, and gains and losses on the disposal of surplus assets. Interest expense will vary periodically depending on prevailing short-term interest rates.Data

13The following table shows net sales by operating segment and net sales by service during the years ended December 31, 2015 and 2014 (in thousands, except percentages):

Critical Accounting Policies

	2015		Change			2014
Net Sales by Operating Segment:
Remediation	$	9,021		(10	)%	$	9,977
Demolition		9,237		(11	)%		10,370
Insulation		470		(15	)%		553
Total net sales	$	18,728		(10	)%	$	20,900

~~The preparation of financial statements~~Segment ~~and~~Operating ~~related~~Performance ~~disclosures in conformity with U.S. generally accepted accounting principles~~ (“GAAP”) and the Company’s discussion and analysis of its financial condition and operating results require the Company’s management to make judgments, assumptions, and estimates that affect the amounts reported in ~~its consolidated financial statements and accompanying notes. Note 1~~thousands, ~~“Summary~~except of Significant Accounting Policies” of the Notes to Consolidated Financial Statements in Part II, Item 8 of this Annual Report on Form 10-K describes the significant accounting policies and methods used in the preparation of the Company’s consolidated financial statements. Management bases its estimates on historical experience and on various other assumptions it believes to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities.percentages)

~~We have identified the policies below~~The asCompany ~~critical~~manages toits ~~our~~ business ~~operations~~on ~~and~~a ~~the~~functional ~~understanding of our results of operations~~basis. ~~The~~Accordingly, the Company’s ~~senior management~~ has ~~reviewed~~determined ~~these~~its ~~critical~~reportable ~~accounting~~operating ~~policies~~segments, which ~~and~~are ~~related~~generally ~~disclosures~~based ~~with~~on the ~~Company’s~~types ~~Board~~ of ~~Directors.~~services ~~The~~it ~~impact and~~provides, ~~any associated risks related~~ to ~~these~~be ~~policies~~Remediation, onDemolition ~~our business operations are discussed throughout this section where such policies affect our reported~~ and ~~expected financial results~~Insulation. ~~Our~~Remediation ~~preparation~~derives its ofincome ~~financial~~from ~~statements~~mold ~~requires~~remediation ~~us to make estimates~~ and ~~assumptions~~abatement ~~that~~services ~~affect~~for ~~the~~a ~~reported~~broad ~~amounts~~range of ~~assets~~environments. ~~and~~Demolition ~~liabilities,~~offers ~~disclosure~~full ofscale ~~contingent~~commercial demolition ~~assets~~ and ~~liabilities~~wrecking. ~~at the~~Insulation ~~date~~derives ofits ~~our~~revenue ~~financial~~from ~~statements,~~re-insulation and ~~the~~insulation ~~reported amounts~~ of ~~revenues~~new and ~~expenses~~remodeling ~~during the reporting period~~projects. ~~There can be no assurance that actual results will not differ from those estimates and such differences may be material.~~

~~Cash~~Further information ~~and~~regarding ~~Cash~~the ~~Equivalents~~Company’s operating segments may be found in Note 16, “Segment Information.”

~~We consider all highly liquid debt instruments and other short-term investments with maturity of three months or less to be cash equivalents.~~Remediation

~~Contracts~~Remediation services ~~Receivable~~are comprised of asbestos abatement, lead removal, mold remediation, indoor air quality/duct cleaning, removal of contaminated soil, animal waste removal, manual selective and complete interior demolition including removal of floor covering, and adhesive removal. These services are primarily performed for commercial, retail, governmental, industrial, and military customers, as well as public and private schools.

Contracts receivable are stated at the amounts management expects to collect from outstanding balances. Management provides for probable uncollectible amounts through a charge to earnings and a credit to a valuation allowance based on its assessment of the current status of individual accounts. Balances outstanding after management has used reasonable collection efforts are written off through a charge to the valuation allowance and a credit to trade contracts receivable. Management has determined that an allowance of $201,000 for doubtful accounts at December 31, 2014 and December 31, 2013 was required.14

~~Contracts~~The following ~~receivable~~table ~~will~~presents ~~generally be~~Remediation ~~due~~segment ~~within~~net 30sales toinformation 45for ~~days~~the years ended December 31, 2015 and ~~collateral~~2014 is(in ~~not~~thousands, except ~~required.~~percentages):

Cost and Estimated Earnings in Excess of Billings on Uncompleted Contracts

	2015			Change			2014
Net sales	$	9,021		$	(956	)	$	9,977
Percentage of total net sales		48	%		-	%		48	%

The decrease ~~asset~~in Remediation segment net sales during the year ended December 31, ~~"Costs~~2015 was caused by typical business fluctuations. Volatility in revenues arises because contracts are of a short duration (typically a month or less). Remediation is usually the first activity performed in a contract and ~~estimated~~therefore the first part to be completed. In larger projects it is not unusual to perform ~~earnings~~work in ~~excess~~stages over the course of ~~billings~~several onmonths. ~~uncompleted~~The ~~contracts,"~~average ~~represents~~size ~~revenues~~and ~~recognized~~number of projects in ~~excess~~the segment in 2015 were greater than in 2014. The Company has no control over the amount of ~~amounts~~work ~~billed~~available to bid from year to year. It is the nature of the Remediation business to have these highs and lows.

~~The liability, "Billings in excess of costs and estimated earnings on uncompleted contracts," represents billings in excess of revenues recognized.~~Demolition

~~Recoverability~~Demolition services are comprised of ~~Long~~partial, phased and complete demolition of commercial, retail, private, governmental, industrial, and military sites, as well as public and private schools. Demolition activities include building separations, concrete breaking and saw-~~Lived~~cutting, using the Company’s own man-lifts, bobcats, roll-off containers and roll-off trucks for hauling and disposal ~~Assets~~of construction debris. The Company focuses on asbestos, mold and lead remediation and interior demolition. The Company also provides full-scale commercial demolition and wrecking, as well as underground and above ground storage tank removal, and full-scale site clearing including underground pipe removal and installation.

~~We review the recoverability of long-lived~~Hurricanes ~~assets~~and onnatural adisasters ~~periodic~~are ~~basis~~the ~~whenever~~biggest ~~events~~factor ~~and changes~~ in ~~circumstances~~the ~~have~~creation ~~occurred~~of ~~which~~large ~~may~~scale ~~indicate~~demolition aopportunities ~~possible impairment. The assessment~~ for ~~potential~~the ~~impairment~~Company. isAs ~~based~~a ~~primarily~~result, this onsegment’s ~~our~~source ~~ability~~of ~~to recover~~ the ~~carrying~~majority ~~value~~ of ~~our~~its ~~long-lived~~work ~~assets~~is ~~from expected~~unpredictable. ~~future~~Demolition ~~cash~~contracts ~~flows~~range ~~from~~widely ~~our~~in ~~operations~~price onfrom ~~an undiscounted basis. If such assets are determined~~ $30 to ~~be impaired~~$20, ~~the~~000. ~~impairment~~Demolition ~~recognized~~contracts islast ~~the~~anywhere ~~amount~~from bytwo ~~which~~weeks ~~the~~(to ~~carrying~~demolish ~~value~~a ofone-story ~~the~~masonry ~~assets~~commercial ~~exceeds~~building ~~the~~such ~~fair~~as ~~value~~a ~~of the assets. Fixed~~home ~~assets~~improvement store) to betwo ~~disposed~~years ofor bymore ~~sale~~to ~~are~~demolish ~~carried~~concrete atslabs ~~the~~left ~~lower~~by ofa ~~the~~hurricane ~~then~~such ~~current~~as ~~carrying value or fair value less estimated costs to sell~~Katrina.

~~Fair~~The following ~~Value~~table ofpresents ~~Financial~~Demolition ~~Instruments~~segment net sales information for the years ended December 31, 2015 and 2014 (in thousands, except percentages):

The carrying amount reported in the balance sheets for cash and cash equivalents, contracts receivable, accounts payable, and accrued expenses approximate fair value because of the immediate or short-term maturity of these financial instruments. We do not utilize derivative instruments.

	2015			Change			2014
Net sales	$	9,237		$	(1,134	)	$	10,370
Percentage of total net sales		49	%		(1	)%		50	%

14The decrease in net sales for the Demolition segment during the year ended December 31, 2015 was caused primarily by the lower number of demolition contracts put out for bids in 2015 compared to 2014. The Company saw more renovation opportunities than demolition projects year over year. During 2015, however, the Company did win 63 demolition contracts in Florida valued at $4,929 that commenced, compared to 77 contracts valued at $2,880 in 2014. Two of these 2015 contracts are worth $1,324. At the end of 2015, the Company had total Demolition segment contracts valued at $3,960 in backlog, including 30 contracts in Florida.

~~Revenue and Cost Recognition~~Insulation

~~The~~Our Insulation ~~Company~~segment ~~recognizes~~derives ~~revenues~~its revenue from ~~fixed~~ re-~~price~~insulation and ~~modified~~insulation ~~fixed-price~~of ~~construction~~new ~~contracts~~and onremodeling ~~the~~projects. ~~percentage-of-completion~~The ~~method,~~segment ~~measured by the percentage~~typically ofdoes ~~cost~~not ~~incurred~~experience tolarge ~~date~~changes toin ~~estimated~~revenues ~~total~~year ~~cost~~over ~~for~~year. ~~each~~The ~~contract.~~amount ~~This~~of ~~method~~sales is ~~used~~typically ~~because~~driven ~~management~~by ~~considers~~the ~~total~~amount ~~cost~~of remodeling toor bemaintenance ~~the~~work ~~best~~required ~~available~~by ~~measure~~a oflarge ~~progress~~supermarket onchain, with which the ~~contracts~~Company has an ongoing service contract.

~~Contract~~The following ~~costs~~table ~~include~~presents ~~all~~Insulation ~~direct~~segment ~~material and~~net ~~labor~~sales ~~costs~~information ~~and~~for ~~those~~the ~~indirect~~years ~~costs~~ended ~~related~~December ~~to contract performance~~31, ~~such~~2015 asand ~~indirect~~2014 ~~labor,~~(in ~~supplies~~thousands, ~~tools, repairs, and~~ ~~depreciation. Selling,~~except ~~general, and administrative costs are charged to expenses as incurred.~~percentages):

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.

	2015			Change			2014
Net sales	$	470		$	(83	)	$	554
Percentage of total net sales		3	%		-	%		3	%

The decrease ~~asset,~~in ~~"Costs~~the ~~and~~Insulation ~~estimated earnings~~segment innet ~~excess~~sales ofbetween ~~billings~~the onyears ~~uncompleted~~ended ~~contracts~~December 31," ~~represents~~2015 ~~revenues~~and ~~recognized~~2014 was caused primarily by a reduction in ~~excess~~work ofprovided ~~amounts~~by ~~billed~~the aforementioned supermarket chain.

~~The liability, "Billings in excess of costs and estimated earnings on uncompleted contracts," represents billings in excess of revenues recognized.~~15

~~Contract retentions are included in~~Gross ~~contract receivables.~~Margin

~~Net~~Gross margin ~~Earnings~~for the years ended December 31, 2015 and 2014 are as follows (~~Loss)~~in ~~Per~~thousands, ~~Share~~except gross margin percentages). Differences between net sales and cost of ~~Common~~sales ~~Stock~~in the table below, on one hand, and the Company’s Consolidated Statement of Operations, on the other, are caused by an adjustment to sales and billing that takes place within consolidated reports rather than within the applicable segments.

The basic net earnings (loss) per common share is computed by dividing the net earnings (loss) by the weighted average number of common shares outstanding. Diluted net earnings (loss) per share gives effect to all dilutive potential common shares outstanding during the period using the “as if converted” basis.

	2015			2014
Net sales	$	18,728		$	20,846
Cost of sales		15,168			16,142
Gross margin	$	3,560		$	4,704
Gross margin percentage		19	%		23	%

~~Uncertainty~~The gross margin percentage in ~~Income~~the ~~Taxes~~year ended December 31, 2015 was 19% compared to 23% in the year ended December 31, 2014. The decrease in year-over-year cost of sales was caused by increased use of materials, increased job site and other indirect costs, and increases in dump fees and fuel costs. Gross margin percentage decreased by four percentage points. A large portion of our increase in jobs costs as well as the decline in gross margin is due to some of our larger jobs not returning the gross profit we anticipated. We encountered some unforeseen complications to our work plan that resulted in higher costs. We have been unsuccessful in obtaining an approved change order for this work.

~~Management considers the likelihood~~In ofgeneral, ~~changes~~gross bymargins ~~taxing~~and ~~authorities~~margins inon ~~its~~services ~~filed~~will ~~income~~remain ~~tax~~under ~~returns~~pressure ~~and~~due ~~recognizes~~to a ~~liability~~variety ~~for~~of orfactors, ~~discloses~~including ~~potential~~continued ~~changes~~industry-wide ~~that~~pricing ~~management~~pressures ~~believes~~and ~~are~~increased ~~more~~competition. ~~likely~~In ~~than~~response ~~not~~ to ~~occur~~competitive ~~upon~~pressures, ~~examination~~the byCompany ~~tax~~may ~~authorities. Management~~have ~~has~~to ~~not identified~~take ~~any~~service ~~uncertain~~pricing actions, ~~tax~~which ~~positions~~could inadversely ~~filed~~affect ~~income~~gross ~~tax~~margins. ~~returns~~Gross ~~that~~margins ~~require~~could ~~recognition~~also orbe ~~disclosure.~~affected ~~The~~by the Company’s ability to manage ~~income~~costs ~~tax~~effectively ~~returns~~and to stimulate demand for certain of its products. To counteract the ~~past~~pressure ~~three~~on ~~years~~margins, ~~are~~the ~~subject~~Company is working to ~~examination~~improve byits ~~tax~~budget ~~authorities~~management processes for contracts, in particular to improve its ability to track and ~~may~~charge for change orders ~~upon~~as ~~examination~~they occur. We are also encountering fewer bidders qualified to bid these types of jobs. The Company may also decline to bid on contracts where gross margins fall below acceptable levels.

~~We follow ASC 740-10, Accounting for~~Operating Uncertainty in Income Taxes (“ASC 740-10”). This interpretation requires recognition and measurement of uncertain income tax positions using a “more-likely-than-not” approach. ASC 740-10 is effective for fiscal years beginning after December 15, 2006. Management has adopted ASC 740-10 and evaluates our tax positions on an annual basis.Expenses

~~Prior to November 1, 2013, CES had~~Operating ~~elected~~expenses byfor ~~unanimous consent of its shareholders to be taxed under~~ the ~~provisions~~years ofended ~~subchapter~~December ~~S of the Internal Revenue Code. Under those provisions~~31, ~~CES~~2015 ~~did~~and ~~not~~2014 ~~pay~~are ~~federal~~as orfollows ~~state~~(in ~~corporate income taxes on its taxable income. Instead~~thousands, ~~the~~except ~~shareholders of CES were liable~~ for ~~individual federal income taxes on their respective shares of CES’s taxable income. Since the closing of the Merger on November 1, 2013, the Company is responsible for paying corporate income tax.~~ percentages):

Advertising (in thousands, except percentages)

	2015			Change			2014
General and administrative	$	5,153		$	132		$	5,021
Percentage of total net sales		28	%		4	%		24	%

~~Advertising costs are expensed when~~General ~~incurred. Advertising costs for 2014~~ and ~~2013~~Administrative ~~were~~(“G&A”) ~~$8 and $14, respectively. Historically, the Company has not relied on advertising and marketing to generate business. We recently hired a marketing/sales manager to expand our marketing activities.~~Expense

15The growth in G&A expense during the year ended December 31, 2015 was caused by a number of factors, including increases in compensation costs (increased by $119 over 2014), due mainly to a $120 increase in salaries paid to sales employees, reflecting the hiring of new sales employees at the end of 2014; higher group health insurance costs, which rose due by 38% or $153 due to higher employee participation; a $35 increase in bank service charges and loan costs, reflecting the costs incurred on debt; advertising costs, which increased by $18 or 235%, reflecting an increase in advertising to win new business; other insurance costs, which increased by 200% or $25; and higher education/training costs, which were up by $16 or 28% due to the large amount of work on military bases, which requires badges, background checks, and specific health and worker certifications that are charged to education.

~~Results~~These increases were offset by lower professional fees, which decreased by $78 or 32%, due to reduced expenses associated with being a publicly traded company; lower business license costs, down by $57 or 38%; a reduction of ~~Operations~~10% (or $38 in ~~thousands~~rent expenses caused by a 50% reduction in the rent of our Crystal Springs location, ~~except~~owned ~~percentages~~by our president Clyde A. Biston; a reduction in shop labor of $36 or 8%, due to the outsourcing of major repair work rather than performing it in-house; and a reduction in salaries paid to officers ($32 or 9%), due to the resignation of an officer.

~~Year Ended December 31, 2014 Compared to Year Ended~~Other ~~December~~Income ~~31,~~and ~~2013~~ Expense

~~Net sales grew 33%, or $5,220, during~~Other ~~the~~income ~~year~~and ~~ended~~expense ~~December~~for ~~31, 2014 compared to~~ the ~~year~~years ended December 31, ~~2013.~~2015 ~~The~~and ~~increase in sales is attributable to the addition of new sales staff in~~ 2014 ~~and~~are anas ~~increase~~follows (in ~~the~~thousands, ~~size~~except ~~of contracts awarded to the Company. The Company has not established any new business segments in 2014.~~percentages):

Revenues in the Demolition segment increased by $3,535, or 52%, during the year ended December 31, 2014 compared to the year ended December 31, 2013. Revenues in the Remediation segment increased by $1,875, or 24%, during the year ended December 31, 2014 compared to the year ended December 31, 2013. The Insulation segment experienced a $190 decrease in sales, or 26%, during the year ended December 31, 2014 compared to the year ended December 31, 2013.

	2015			Change			2014
Other income/(expense)	$	(7	)	$	(162	)	$	155
Interest expense		(183	)		77			(260	)
Total other income/(expense), net	$	(190	)		(85	)		(105	)

The year-over-year ~~increase~~decrease in ~~Demolition~~other ~~segment revenues~~income ~~was~~during ~~primarily attributable to revenues from~~ the ~~Company’s~~year ~~contracts~~ended ~~for~~December ~~the~~31, ~~Press~~2015 ~~Park~~was ~~project~~due inprimarily ~~New~~to ~~Orleans, Louisiana,~~ a ~~project~~state-mandated ininsurance refund ~~Silver~~that ~~Springs,~~was ~~Florida,~~made ~~and the ramps at Tampa International Airport~~ in ~~Florida~~2014. ~~Remediation~~There ~~segment sales~~was ~~typically~~no ~~fluctuate~~refund ~~from year to year. The decline~~ in the ~~revenues~~corresponding ofperiod ~~the Insulation segment was due primarily to lower maintenance spending by a large supermarket chain~~ in ~~the southeastern United States~~2015.

~~Management continues to believe that~~The ~~the~~year-over-year ~~Company~~decrease ~~will grow revenues by expanding into new geographic areas~~ in ~~the~~interest ~~southern~~expense ~~and~~during ~~eastern U.S. During~~ the year ended December 31, ~~2014,~~2015 ~~the new sales staff that~~ was ~~hired~~due ~~early~~primarily ~~in 2014 in Florida and Louisiana continued~~ to ~~bring~~the inrestructuring ~~new~~of the ~~business~~Company’s ~~that was~~bank ~~either~~line ~~under~~of ~~way~~credit orat ~~awarded~~the inend of 2014.

In 2014, approximately $1,569 of revenues were derived from contracts in Louisiana (compared to $1,199 in 2013). Revenues were more heavily concentrated in Florida in 2014 as a result of new contract wins in the state, including demolition contracts in Silver Springs (valued at $431) and with the FDOT (valued at $3,139), and remediation contracts at the Daytona Speedway (valued at $1,147), the Federal Courthouse in Jacksonville (valued at $376), Hill Middle School (valued at $367), and DTE Power Plant in Marysville, Michigan (valued at $3,554). The Daytona Speedway contract will also have a significant scrap revenue stream that will cover a portion of our funding of startup costs for the contract.16

~~Sales~~Provision for ~~Data~~Income Taxes

~~The~~Prior to ~~following~~November ~~table~~1, ~~shows~~2013, ~~net~~CES ~~sales by~~elected ~~operating~~to ~~segment~~be ~~and~~taxed ~~net~~under ~~sales~~the byprovisions ~~service~~of ~~during~~subchapter S of the ~~years~~Internal ~~ended~~Revenue ~~December~~Code. ~~31,~~Under ~~2014~~those provisions, during and prior to 2013, ~~(in~~CES ~~thousands~~did not pay federal or state corporate income taxes on its taxable income. Instead, ~~except~~its ~~percentages):~~shareholders were liable for individual federal income taxes on their respective shares of CES’s taxable income. Therefore, no provision or liability for federal income taxes was included in our financial statements prior to 2013.

	2014		Change			2013
Net Sales by Operating Segment:
Remediation	$	9,977		25	%	$	7,965
Demolition		10,370		53	%		6,764
Insulation		553		(26	%)		744
Total net sales	$	20,900		35	%	$	15,473

Provision for income taxes and effective tax rates for the years ended December 31, 2015 and 2014 was as follows (dollars in thousands):

Segment Operating Performance (in thousands, except percentages)

	December 31, 2015			December 31, 2014
Provision for income taxes	$	-		$	-
Effective tax rate		0	%		-

The Company’s ~~manages~~effective ~~its~~tax ~~business~~rate ~~on a~~for ~~functional~~the ~~basis.~~year ~~Accordingly,~~ended ~~the~~December ~~Company~~31, ~~has~~2015 ~~determined~~was ~~its~~nil ~~reportable~~because ~~operating~~of ~~segments,~~the ~~which~~loss ~~are~~in ~~generally~~2015 ~~based~~and on the ~~types~~ oflosses ~~services~~carried forward itfrom ~~provides,~~prior toperiods. beThe ~~Remediation,~~Company ~~Demolition~~has ~~and~~net ~~Insulation.~~operating ~~Remediation~~loss ~~derives~~carryforwards ~~its~~of ~~income~~$2,025,295 ~~from~~available ~~mold~~at ~~remediation and~~December ~~abatement~~31, ~~services~~2015 ~~for~~and has recorded a ~~broad~~deferred ~~range~~tax asset of ~~environments.~~$718,980 ~~Demolition~~reflecting ~~offers~~the ~~full~~benefit ~~scale~~of ~~commercial~~the ~~demolition~~loss ~~and wrecking~~carryforwards. ~~Insulation derives~~These ~~its~~deferred ~~revenue~~tax ~~from~~assets ~~re-insulation~~will expire ~~and~~in ~~insulation~~years of2034 ~~new~~through ~~and remodeling projects~~2035.

~~Further information regarding the Company’s~~Liquidity ~~operating~~and ~~segments~~Capital ~~may~~Resources ~~be found~~ (in ~~Note 16~~thousands, ~~“Segment~~except ~~Information.”~~percentages)

16The Company believes its existing balances of cash, cash equivalents and marketable securities will be sufficient to satisfy its working capital needs, capital asset purchases, outstanding commitments, and other liquidity requirements associated with its existing operations over the next 12 months. The Company will seek, however, to raise up to $5,000 in additional capital in 2016 to support its 2016 plan of operations. There can be no assurance that the Company will be able to raise such additional capital on terms that are acceptable to the Company or at all.

~~Remediation~~The Company’s cash, cash equivalents and marketable securities were generally held in bank accounts.

~~Remediation services are comprised~~The offollowing ~~asbestos~~table ~~abatement,~~presents ~~lead~~selected ~~removal,~~financial ~~mold~~information ~~remediation, indoor air quality/duct cleaning, removal of contaminated soil, animal waste removal, manual selective~~ and ~~complete~~statistics ~~interior~~as ~~demolition including removal~~ of ~~floor~~December ~~covering~~31, ~~and~~2015 ~~adhesive removal. These services are primarily performed for commercial, retail, governmental, industrial,~~ and ~~military~~December ~~customers~~31, as2014 ~~well as public and~~(dollars ~~private~~in ~~schools.~~thousands):

The following table presents Remediation segment net sales information for the years ended December 31, 2014 and 2013 (in thousands, except percentages):

	December 31, 2015		December 31, 2014
Cash, cash equivalents and marketable securities	$	230	$	149
Property, plant and equipment, net	$	1,998	$	2,117
Long-term debt	$	3,865	$	3,337
Working capital	$	284	$	1,314

	2014			Change			2013
Net sales	$	9,977		$	2,012		$	7,965
Percentage of total net sales		48	%		(3	%)		51	%

The following table presents selected financial information and statistics about the Company’s sources and uses of cash during the first nine months of 2015 and 2014 (dollars in thousands):

The increase in Remediation segment net sales during the year ended December 31, 2014 was caused by typical business fluctuations. Volatility in revenues arises because contracts are of a short duration (typically a month or less). Remediation is usually the first activity performed in a contract and therefore the first part to be completed. In larger projects it is not unusual to perform work in stages over the course of several months. The average size and number of projects in the segment in 2014 were greater than in 2013. The Company has no control over the amount of work available to bid from year to year. It is the nature of the Remediation business to have these highs and lows.

	Year Ended December 31
	2015			2014
Cash generated by/ (used in) operating activities	$	89		$	(365	)
Cash generated by/ (used in) investing activities	$	(417	)	$	(535	)
Cash generated by/ (used in) financing activities	$	408		$	799

~~Demolition~~During the year ended December 31, 2015, the cash generated by operating activities of $89 was a result of $(1,064) of net loss, offset by non-cash adjustments to net loss of $536 and a net change in operating assets and liabilities of $617. The Company used $(417) of cash for investing activities in 2015 to purchase property and equipment. There were no disposals of equipment in 2015. The $408 of cash generated by financing activities during 2015 came from capital contributions of $18 and new borrowing of $1,127, which included $535 from the chairman of board of directors of the Company, Clyde A. Biston, offset by $(736) of loan repayments. No distributions were paid in 2015.

Demolition services are comprised of partial, phased and complete demolition of commercial, retail, private, governmental, industrial, and military sites, as well as public and private schools. Demolition activities include building separations, concrete breaking and saw-cutting, using the Company’s own man-lifts, bobcats, roll-off containers and roll-off trucks for hauling and disposal of construction debris. The Company focuses on asbestos, mold and lead remediation and interior demolition. The Company also provides full-scale commercial demolition and wrecking, as well as underground and above ground storage tank removal, and full-scale site clearing including underground pipe removal and installation.17

~~Hurricanes~~During 2014, ~~and~~cash ~~natural~~used ~~disasters~~in ~~are the~~operating ~~biggest~~activities ~~factor~~of in$(365) ~~the~~was ~~creation~~a result of ~~large~~$160 ~~scale~~of ~~demolition~~net ~~opportunities~~income, ~~for~~non-cash ~~the~~adjustments ~~Company.~~to Asnet aincome ~~result,~~of ~~this segment’s~~$578 ~~source~~and ofa ~~the~~net ~~majority~~change ofin ~~its~~operating ~~work~~assets isand ~~unpredictable.~~liabilities ~~Demolition~~of ~~contracts~~$(1,104). ~~range~~Cash ~~widely~~used in ~~price~~investing ~~from~~activities of $30(534) toduring ~~$20,000.~~2014 ~~Demolition~~consisted ~~contracts~~of ~~last~~the ~~anywhere~~purchase ~~from~~of ~~two~~property ~~weeks~~and ~~(to~~equipment. ~~demolish~~Cash agenerated ~~one-story~~in ~~masonry~~financing ~~commercial~~activities ~~building~~during ~~such~~2014 asconsisted aprimarily ~~home~~of ~~improvement~~new ~~store)~~borrowings toof ~~two~~$5,160 ~~years~~and orcapital ~~more~~contributions to$(320), ~~demolish~~offset ~~concrete~~by ~~slabs~~repayment ~~left~~of bydebt a$(4,681). ~~hurricane~~There ~~such~~were asno ~~Katrina~~distributions in 2014.

~~The following table presents Demolition~~Long-Term ~~segment net sales information for the years ended December 31, 2014 and 2013 (in thousands, except percentages):~~Debt

	2014			Change			2013
Net sales	$	10,370		$	3,606		$	6,764
Percentage of total net sales		50	%		6	%		44	%

To date the Company has financed its operations through internally generated revenue from operations, the sale of common stock, the issuance of notes, borrowings from banks, and loans from shareholders. The following debt was outstanding at December 31, 2015:

~~The~~(i) ~~increase~~Demand inloan ~~net~~from ~~sales~~shareholder, ~~for~~Clyde ~~the~~Biston, ~~Demolition segment~~bearing ~~during~~annual ~~the~~interest ~~year~~at ~~ended~~4.25%. At December 31, ~~2014~~2015, $254 was ~~caused~~outstanding ~~primarily~~under by the ~~additional~~loan. ~~revenue~~$273 ~~from~~was ~~three~~outstanding ~~major~~under ~~contracts:~~the ~~Press Park,~~loan ~~Silver~~at ~~Springs,~~December ~~and Tampa International Airport. These are multi-year contracts~~31, ~~each now in their third year of performance.~~ 2014 ~~revenue from these three projects was $1,625~~.

~~Insulation~~(ii) Demand loan from shareholder, Clyde Biston, bearing annual interest at 4.75%. At December 31, 2015, $158 was outstanding under the loan. $nil was outstanding under the loan at December 31, 2014.

~~Our~~(iii) ~~Insulation~~Demand ~~segment~~loan ~~derives its revenue~~ from ~~re-insulation~~shareholder, ~~and~~Clyde ~~insulation~~Biston, ofbearing ~~new~~annual ~~and~~interest ~~remodeling~~at ~~projects~~4.75%. ~~The~~At ~~segment~~December ~~typically~~31, ~~does~~2015, ~~not~~$175 ~~experience~~was ~~large~~outstanding ~~changes in~~under ~~revenues~~the ~~year over year~~loan. ~~The~~$nil ~~amount~~was ofoutstanding ~~sales~~under ~~is typically driven by~~ the ~~amount~~loan ofat ~~remodeling~~December ~~or maintenance work required by a large supermarket chain~~31, ~~with which the Company has an ongoing service contract~~2014.

17(iv) Demand loan from shareholder, Clyde Biston, bearing annual interest at 4.75%. At December 31, 2015, $175 was outstanding under the loan. $nil was outstanding under the loan at December 31, 2014.

(v) A line of credit from Centennial Bank, Dade City, Florida, bearing variable interest of 1.25% over prime, secured by land, improvements, and accounts receivable. The ~~following~~line ~~table~~of ~~presents~~credit ~~Insulation segment~~was ~~net~~obtained ~~sales~~on ~~information~~April ~~for~~30, ~~the~~2015, ~~years~~and ~~ended~~matures April 30, 202016 At December 31, ~~2014~~2015 and ~~2013~~2014, ~~(in thousands~~$1,750 ~~except~~was ~~percentages):~~outstanding under the line.

	2014			Change			2013
Net sales	$	554		$	(190	)	$	744
Percentage of total net sales		3	%		(2	%)		5	%

(vi)

Installment loan from shareholder, Clyde Biston, bearing annual interest at 6.15%. The loan is repayable in monthly payments of $23,994. At December 31, 2015, $2,656 was outstanding under the loan. $2,721 was outstanding under the loan at December 31, 2014.

~~The~~(vii) ~~decrease~~Various ininstallment ~~the~~loans, ~~Insulation~~with ~~segment net~~interest ~~sales~~rates ~~between~~ranging ~~the~~from ~~years~~0% ~~ended~~to 9.5%, secured by equipment and property. At December 31, ~~2014~~2015, ~~and~~$904 ~~2013~~ was ~~caused~~outstanding ~~primarily~~under bythese aloans. ~~reduction~~In in2015, ~~work~~the ~~provided~~Company byrepaid ~~the~~$65 ~~aforementioned supermarket~~of ~~chain~~principal under these loans. At December 31, 2014, $938 was outstanding under these loans.

~~Gross~~At December ~~Margin~~31, 2015, a total of $6,073 was outstanding under all loans and the line of credit. $2,208 of that amount is due and payable in the 12 months following that date.

~~Gross margin for~~Dividend the years ended December 31, 2014 and 2013 are as follows (in thousands, except gross margin percentages). Differences between net sales and cost of sales in the table below, on one hand, and the Company’s Consolidated Statement of Operations, on the other, are caused by an adjustment to sales and billing that takes place within consolidated reports rather than within the applicable segments.Program

	2014			2013
Net sales	$	20,846		$	15,538
Cost of sales		16,142			11,852
Gross margin	$	4,704		$	3,686
Gross margin percentage		23	%		24	%

As a privately-owned company prior to November 1, 2013, CES was owned by Clyde Biston. Mr. Biston elected to receive part of his compensation in 2013 the form of distributions paid to himself as the sole shareholder. No distributions were paid in 2014 or 2015 by the Company or CES.

The ~~gross margin percentage in the~~ ~~year~~Company ~~ended~~does ~~December~~not ~~31,~~expect ~~2014 was 23% compared~~ to ~~24%~~pay inany ~~the~~dividends ~~year~~or ~~ended~~make ~~December~~any ~~31,~~distributions ~~2013.~~to ~~The~~shareholders ~~increase~~ in year-over-year cost of sales was caused by increased use of materials, increased job site and other indirect costs, and increases in dump fees and fuel costs, all the result of the increase in net sales2016. Gross margin percentage decreased by one percentage point, the result mainly of higher materials and labor costs in our contracts. We believe our profit margin will increase as we continue to bid larger projects with an increased margin. We are also encountering fewer bidders qualified to bid these types of jobs.

~~The Company anticipates that gross~~Further ~~margin~~details ~~during~~about ~~2015~~compensation ~~will~~paid ~~be between 23% and 26%. In general, gross margins and margins on services will remain under pressure due~~ to ~~a variety of factors, including continued industry-wide pricing pressures and increased competition~~Mr. InBiston ~~response~~can ~~to competitive pressures, the Company may have to take service pricing actions, which could adversely affect gross margins. Gross margins could also~~ be ~~affected~~found byunder ~~the~~Item ~~Company’s ability to manage costs effectively and to stimulate demand for certain of its products. To counteract the pressure on margins~~10, ~~the Company is working to improve its budget management processes for contracts~~“Directors, inExecutive ~~particular to~~Officers ~~improve its ability to track~~ and ~~charge~~Corporate ~~for change orders as they occur. The Company may also decline to bid on contracts where~~Governance” ~~gross margins fall~~ below ~~acceptable levels~~.

~~Operating~~Off-Balance Sheet ~~Expenses~~Arrangements and Contractual Obligations

~~Operating~~The Company ~~expenses~~has ~~for~~not entered into any transactions with unconsolidated entities whereby the ~~years~~Company ~~ended~~has financial guarantees, subordinated ~~December~~retained 31interests, ~~2014~~derivative ~~and~~instruments, ~~2013~~or ~~are~~other ascontingent ~~follows~~arrangements (that expose the Company to material continuing risks, contingent liabilities, or any other obligation under a variable interest in ~~thousands~~an unconsolidated entity that provides financing, liquidity, ~~except~~market ~~for~~risk, ~~percentages):~~or credit risk support to the Company.

	2014			Change			2013
General and administrative	$	5,021		$	1,361		$	3,660
Percentage of total net sales		24	%		-	%		24	%

Lease Commitments (dollars in thousands)

18The Company is headquartered in Crystal Springs, Florida, where it occupies 6,000 square feet of office space as well as 6,000 square feet for a mechanic shop and a 12,000 square foot warehouse. The facilities are owned by the Company’s President, Clyde A. Biston. Between June and October 2013, the Company was allowed to use the facilities rent-free. As of November 1, 2013, the Company entered into a lease agreement with Mr. Biston for rental of the facilities at an annual cost of $180 ($15 per month). As of June 1, 2015, the rent for the Crystal Springs facilities was reduced to an annual cost of $90 ($7.5 per month).

~~General~~The Company also leases satellite offices in Davie and ~~Administrative~~Ft. ~~(“G&A”)~~Walton ~~Expense~~Beach, Florida as well as Chalmette, Louisiana. Monthly rent for these facilities is $4.98, $2.38, and $.75 respectively.

The growth in G&A expense during the year ended December 31, 2014 was caused by a number of factors, including increases in compensation costs (increased by $667), higher rents associated with the leases of the Company’s headquarter building in Crystal Springs, Florida, a building in Zephyrhills, Florida and an office in Miami, Florida (increased by $247), higher group health insurance costs, which rose due to a 46% increase in premiums and higher employee participation ($128), and increased professional fees associated with being a public company ($122).18

~~Compensation~~Leases are ~~costs~~for ~~increased~~terms asranging afrom ~~result of~~month-to-month ~~the~~to ~~hire~~one ofyear ~~new~~to ~~sales~~48 ~~staff,~~months. ~~recruited~~As ~~in anticipation~~ of ~~expansion~~December of31, ~~sales efforts into new states (increased by $236)~~2015, ~~an increase in office salaries ($175) resulting from~~ the ~~hire~~Company’s oftotal anfuture minimum ~~internal~~lease ITpayments ~~Manager~~under ~~and in~~non-~~house~~cancelable ~~legal~~operating ~~counsel,~~leases anwere ~~increase in officers’ salaries (~~$~~214;~~ ~~since~~15.25 ~~the~~per ~~Company~~month, ~~restructured~~or ~~itself~~$183 ~~as a public company~~ in ~~2013,~~ the ~~CEO~~aggregate nofor ~~longer~~the ~~receives~~full term ~~compensation~~of ~~through~~all ~~regular~~such ~~dividends)~~leases, ~~and~~all ~~higher field labor salaries ($30). The total number~~ of ~~employees~~which atare ~~December~~leases ~~31, 2013~~for ~~was 130~~office, warehouse and atmechanic ~~December 31, 2014, the total number of employees had decreased to 125~~space.

~~Rent expenses increased as the Company~~Other now pays rent on its headquarter building in Crystal Springs, Florida, which is owned by the CEO. Prior to becoming a public company in November 2013, the Company was permitted to use the building at no cost. The Company also leased new premises in Zephyrhills, Florida in anticipation of needing more space in connection with its plans to expand its marketing and bidding activities.Obligations

~~Having in-house counsel allows the~~In ~~Company~~addition to ~~improve~~ the ~~efficiency~~contractual ofobligations ~~contract~~mentioned ~~reviews~~above, ~~and~~the ~~negotiations.~~Company ~~With~~had aoutstanding ~~stronger~~commitments ~~legal~~to ~~presence,~~lease wecopiers ~~also~~totaling ~~are~~$46 in ~~able~~the toaggregate ~~successfully collect~~for orthe ~~litigate~~full ~~receivables~~term inof aall ~~more~~such ~~timely~~leases ~~manner~~as ~~when~~of ~~needed~~December 31, 2015.

The Company’s IT department has installed new servers and all offices are now connected remotely. Employees now routinely have video conferencing, which eliminates travel to the home office - saving time and gas. Additionally, project managers have tablets for their work in the field, which has improved the effectiveness of walk-through and preconstruction visits. Pictures and plans can be downloaded from the field to Company servers for instant access by anyone who needs to review them, prepare bids, etc.Indemnification

~~Other~~The Company ~~Income~~generally ~~and~~does ~~Expense~~not indemnify its customers against legal claims arising from services it provides. The Company has not been required to make any significant payments resulting from such services.

~~Other~~The Company ~~income~~has entered into indemnification agreements with its directors and ~~expense~~executive ~~for~~officers. Under these agreements, the ~~years~~Company ~~ended~~has ~~December~~agreed ~~31,~~to ~~2014~~indemnify ~~and~~such ~~2013~~individuals ~~are~~to the fullest extent permitted by law against liabilities that arise by reason of their status as ~~follows~~directors (or officers and to advance expenses incurred by such individuals in ~~thousands~~connection with related legal proceedings. It is not possible to determine the maximum potential amount of payments the Company could be required to make under these agreements due to the limited history of prior indemnification claims and the unique facts and circumstances involved in each claim. However, the ~~except~~Company ~~percentages):~~maintains directors and officers liability insurance coverage to reduce its exposure to such obligations, and payments made under these agreements historically have not been material.

	2014			Change			2013
Other income	$	155		$	(16	)	$	171
Interest expense		(260	)		(224	)		(36	)
Total other income/(expense), net	$	(105	)		(240	)	$	135

ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

~~The year-over-year increase in other~~Not expense during the year ended December 31, 2014 was due primarily to higher interest costs resulting from the partial restructuring of the Company’s bank line of credit, and lower gains on disposals of assetsapplicable.

~~Provision for Income Taxes~~19

~~Prior to November 1, 2013, CES elected~~ITEM ~~to be taxed under the provisions of subchapter S of the Internal Revenue Code~~8. FINANCIAL Under those provisions, during and prior to 2013, CES did not pay federal or state corporate income taxes on its taxable income. Instead, its shareholders were liable for individual federal income taxes on their respective shares of CES’s taxable income. Therefore, no provision or liability for federal income taxes was included in our 2013 financial statements.STATEMENTS

~~Provision for income taxes and effective~~Scrudato ~~tax~~& ~~rates for the years ended December 31~~Co., ~~2014 and 2013 was as follows (dollars in thousands):~~ PA

	December 31, 2014			December 31, 2013
Provision for income taxes	$	-		$	-
Effective tax rate		0	%		-

7 Valley View Drive

~~The Company’s effective tax rate for the year ended December 31~~Califon, ~~2014 was nil because of the losses carried forward from prior periods, which offset the profit~~ ~~recorded~~New byJersey ~~the Company in the year.~~07830

19908-534-0008

~~Liquidity~~REPORT OF ~~and~~INDEPENDENT ~~Capital~~REGISTERED ~~Resources~~PUBLIC ~~(in~~ACCOUNTING ~~thousands, except percentages)~~FIRM

~~The following table presents selected financial information~~To ~~and~~the ~~statistics~~Board as of ~~and~~Directors ~~for the years ended December 31, 2014 and 2013 (in thousands):~~of

	2014			2013
Cash, cash equivalents and marketable securities	$	149		$	250
Property, plant and equipment, net	$	2,117		$	2,161
Long-term debt	$	3,337		$	4,731
Working capital	$	1,977		$	2,825
Cash generated by/(used in) operating activities	$	(365	)	$	392
Cash used in investing activities	$	(534	)	$	(612	)
Cash generated by financing activities	$	799		$	338

CES Synergies, Inc.

~~The~~We have ~~Company~~audited ~~believes~~the ~~its~~accompanying ~~existing~~balance ~~balances~~ sheet of ~~cash~~CES Synergies, ~~cash~~Inc. ~~equivalents~~ and ~~marketable~~its ~~securities~~subsidiaries ~~will~~(“the beCompany”) ~~sufficient~~as toof ~~satisfy~~December 31, ~~its~~2015 ~~working~~and ~~capital needs~~2014, ~~capital~~and ~~asset~~the ~~purchases~~related statements of operations, ~~outstanding~~ ~~commitments~~stockholders’ equity, and ~~other~~cash ~~liquidity~~flows ~~requirements~~for ~~associated~~the ~~with~~years ~~its~~ended. ~~existing~~These financial ~~operations~~statements ~~over~~are the ~~next~~responsibility 12of ~~months~~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 ~~cash~~control over financial reporting. Accordingly, ~~cash~~we ~~equivalents~~express no such opinion. An audit also includes examining, on a test ~~and~~basis, ~~marketable~~evidence ~~securities~~supporting ~~were~~the ~~generally~~amounts ~~held~~and disclosures in ~~held~~the infinancial ~~bank~~statements, ~~accounts~~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.

~~During 2014, cash used in operating~~In ~~activities~~our ofopinion ~~$(365)~~based ~~was~~on aour ~~result~~audit, ofthe ~~$160~~financial ofstatements ~~net~~referred ~~income, non-cash adjustments~~ to ~~net~~above ~~income~~present offairly, ~~$578~~in ~~and~~all amaterial ~~net~~respects, ~~change~~the ~~in operating~~financial ~~assets~~position ~~and liabilities~~ of ~~$(1~~CES Synergies,~~104)~~ Inc. ~~Cash~~and ~~used~~its insubsidiaries ~~investing~~as ~~activities~~ of ~~$(534)~~December ~~during~~31, ~~2014~~2015 ~~consisted of the purchase of property~~ and ~~equipment. Cash generated in financing activities during~~ 2014, ~~consisted~~and ~~primarily~~the results of ~~new~~its ~~borrowings~~operations, ~~of $5~~stockholders’ equity,~~160~~ and ~~capital contributions~~its ~~$(320),~~cash ~~offset~~flows byfor ~~repayment~~the ofyears ~~debt~~then ~~$(4~~ended,~~681).~~ ~~There~~in ~~were~~conformity nowith ~~distributions~~accounting principles generally accepted in ~~2014~~the ~~$(930)~~United States.

~~During 2013, cash generated from operating~~/s/ ~~activities~~Scrudato of& ~~$392 was a result of $(154) of net loss, non-cash adjustments to net income of $597 and a net change in operating assets and liabilities of $(51)~~Co. Cash used in investing activities of $(612) during 2013 consisted primarily of $(639) for the purchase of property and equipment. Cash generated in financing activities during 2013 consisted primarily of new borrowings of $1,~~802,~~ ~~offset by repayment of debt $(535) and distributions $(930).~~PA

~~Capital~~Califon, New ~~Assets~~Jersey

~~The Company’s capital expenditures~~March ~~were $535 during 2014~~30, consisting of purchases of machinery and equipment for the remediation segment. The Company expects to raise up to $5,000 in new capital for capital expenditures in 2015, to renovate office space in Zephyrhills, and to open another satellite office in the south.2016

~~Long~~F-~~Term Debt~~1

~~To date the Company has financed its~~CONSOLIDATED ~~operations~~BALANCE through internally generated revenue from operations, the sale of common stock, the issuance of notes, borrowings from banks, and loans from shareholders. The following debt was outstanding at December 31, 2014:SHEET

(i) Demand loan from shareholder, Clyde Biston, bearing annual interest at 4.25%. At December 31, 2014, $273 was outstanding under the loan. In 2014, the Company borrowed $155 of principal under the loan. At December 31, 2013, $118 was outstanding under the loan. In 2013, the Company repaid $134 of principal under the loan.

	December 31, 2015			December 31, 2014
ASSETS
Current assets
Cash	$	229,882		$	149,455
Advances to employees		13,770			14,006
Contracts receivable (net of allow. for bad debt)		4,599,131			6,365,274
Inventory		133,715			152,772
Deferred tax asset- current		86,098			-
Cost and estimated earnings in excess of billings on uncompleted contracts		690,553			229,437
Total current assets	$	5,753,149		$	6,910,944
Property and equipment, net		1,998,158			2,117,217
Goodwill		1,446,855			1,446,855
Deferred tax asset- non-current		632,882			-
Other assets		4,731			6,531
TOTAL ASSETS	$	9,835,775		$	10,481,547

LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Accounts payable	$	2,911,780		$	2,570,259
Accrued payroll		47,819			82,391
Billings in excess of costs and estimated earnings on uncompleted contracts		301,398			598,645
Notes payable		1,750,300			1,750,300
Current portion long-term debt
Related party		-			-
Non-related party		457,950			595,757
Total current liabilities		5,469,247			5,597,352
Long-term debt, net of current portion
Related party		3,419,098			2,808,605
Non-related party		446,066			528,561
Total long-term liabilities		3,865,164			3,337,166
Stockholders' equity
Common stock, authorized: $0.001 par value, 250,000,000 shares, at December 31, 2015; issued: 46,880,500 shares, at December 31, 2015; 46,730,500 shares, at December 31, 2014		46,881			46,730
Additional paid in capital		1,299,018			1,281,048
Retained earnings		(844,535	)		219,251
Total stockholders' equity		501,364			1,547,029
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$	9,835,775		$	10,481,547

~~(ii) A line~~See ofaccompanying ~~credit~~Notes from Centennial Bank, Dade City, Florida, bearing variable interest of 1.25% over prime, secured by land, improvements, and accounts receivable. The line of credit was obtained on April 30, 2014, and matures April 30, 2015. At December 31, 2014, $1,750 was outstanding under the line. The line of credit was obtained to ~~refinance~~Consolidated ~~and~~Financial ~~repay the previous line of credit from the bank, under which it had borrowed $3,983 at December 31, 2013.~~Statements

20F-2

~~(iii) Installment~~CONSOLIDATED ~~loan~~STATEMENT ~~from~~OF shareholder, Clyde Biston, bearing annual interest at 6.15%. At December 31, 2014, $2,721 was outstanding under the loan. The loan is repayable in monthly payments of $23,994. There were no borrowings outstanding under the loan at December 31, 2013.OPERATIONS

(iv) Various installment loans, with interest rates ranging from 0% to 9.5%, secured by equipment and property. At December 31, 2014, $938 was outstanding under these loans. In 2014, the Company repaid $164 of principal under these loans. At December 31, 2013, $1,102 was outstanding under these loans. In 2013, the Company repaid $535 of principal under these loans.

	Years ended December 31,
	2015			2014
Revenues	$	18,728,148		$	20,846,119
Cost of sales		15,167,887			16,142,507
Gross profit		3,560,261			4,703,612
General & administrative expenses		5,152,941			5,020,556
Net operating profit/(loss)		(1,592,680	)		(316,944
Other expenses, net		(190,086	)		(104,728	)
Net profit/(loss) before income taxes	$	(1,782,766	)	$	(421,672	)
Income taxes		718,980			(81,339	)
Net profit/(loss) after income taxes	$	(1,063,786	)		(503,011	)

Earnings per share
Basic and diluted	$	(0.023	)	$	(0.011	)

Shares used in computing earnings per share
Basic and diluted		46,843,514			46,730,500
Cash distributions declared per common share	$	-		$	-

~~At December 31, 2014, a total of $5,683~~See ~~was~~accompanying ~~outstanding~~Notes ~~under~~to ~~all~~Consolidated ~~loans~~Financial ~~and the line of credit. $2,346 of that amount is due and payable in the 12 months following that date.~~Statements

~~Dividend Program~~F-3

~~As a privately-owned company prior~~CONSOLIDATED toSTATEMENT ~~November~~OF 1,STOCKHOLDERS’ 2013, CES was owned by Clyde Biston. Mr. Biston elected to receive part of his compensation in 2013 the form of distributions paid to himself as the sole shareholder. No distributions were paid in 2014 by the Company or CES. The distributions are summarized in the following table (in thousands):EQUITY

	Dividends Paid
	Common Stock				Treasury Stock						Additional paid in			Accumulated
2013	$	930
	Shares		Amount		Shares			Amount			Capital			surplus			Total
2014		-
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
Issuance of common stock (sold)		30,000		30		-			-			17,970			-			18,000
Issuance of common stock for employment and services		120,000		121		-			-			-			-			121
Net income/(loss) for the year ended December 31, 2015		-		-		-			-			-			(1,063,786	)		(1,063,786	)
Balance at December 31, 2015		46,880,500	$	46,881		-		$	-		$	1,299,018		$	(844,535	)	$	501,364

~~Further~~See accompanying ~~details~~Notes ~~about compensation paid~~ to ~~Mr.~~Consolidated ~~Biston~~Financial ~~can be found under Item 10, “Directors, Executive Officers and Corporate Governance” below.~~Statements

~~The Company does not expect to pay any dividends or make any distributions to shareholders in 2015.~~F-4

~~Off-Balance~~CONSOLIDATED STATEMENT ~~Sheet~~OF ~~Arrangements~~CASH ~~and Contractual Obligations~~FLOWS

The Company has not entered into any transactions with unconsolidated entities whereby the Company has financial guarantees, subordinated retained interests, derivative instruments, or other contingent arrangements that expose the Company to material continuing risks, contingent liabilities, or any other obligation under a variable interest in an unconsolidated entity that provides financing, liquidity, market risk, or credit risk support to the Company.

	Years ended December 31,
	2015			2014
Cash flows from operating activities
Net income (loss) from continuing operations	$	(1,063,786	)	$	(503,011	)
Adjustments to reconcile net loss to net cash used by operating activities:
Depreciation		535,620			578,427
(Gain) Loss on Asset Disposal		-			(400	)
(Increase) decrease in contracts receivable		1,766,143			(2,399,565	)
(Increase) decrease in inventory		19,057			1,218
(Increase) decrease in other assets		(716,944	)		29,191
(Increase) decrease in estimated earnings in excess of billings		(461,116	)		580,111
Increase (decrease) in accounts payable and accrued expenses		306,949			1,268,585
Increase (decrease) in billings in excess of costs and estimated earnings		(297,247	)		80,033
Net cash provided by (used in) operating activities		88,676			(365,411
Cash flows from investing activities
Purchase property and equipment		(416,561	)		(534,826	)
Proceeds from disposal of equipment		-			400
Net cash provided by (used in) investing activities		(416,561	)		(534,426	)
Cash flows from financing activities
Payments on notes payable		(736,371	)		(4,681,071	)
Net proceeds from borrowings		1,126,562			5,160,454
Adjustments to common stock and additional paid-in capital		18,121			319,550
Net cash provided by (used in) financing activities		408,312			798,933
Net increase (decrease) in cash		80,427			(100,904
Cash, beginning of period		149,455			250,359
Cash, end of period	$	229,882		$	149,455

~~Lease~~See accompanying ~~Commitments~~Notes ~~(dollars~~to inConsolidated ~~thousands)~~Financial Statements

The Company is headquartered in Crystal Springs, Florida, where it occupies 6,000 square feet of office space as well as 6,000 square feet for a mechanic shop and a 12,000 square foot warehouse. The facilities are owned by the Company’s Chief Executive Officer, Clyde A. Biston. Between June and October 2013, the Company was allowed to use the facilities rentF-~~free. As of November 1, 2013, the Company entered into a lease agreement with Mr. Biston for rental of the facilities at an annual cost of $180.~~5

~~The Company also leases satellite offices in~~NOTE ~~Davie~~1 ~~and~~- ~~Ft.~~Company ~~Walton Beach, Florida as well as Chalmette, Louisiana. Monthly rent for these facilities is $4.8, $2.2, and $.75 respectively.~~Background

~~The~~CES Synergies, ~~Company’s~~Inc. ~~major~~(the ~~facility leases~~“Company”) ~~are~~is ~~typically~~a ~~for~~Nevada ~~terms~~corporation ~~not~~formed ~~exceeding~~on ~~one~~April ~~year~~26, ~~and~~2010. ~~generally~~The ~~provide~~Company ~~renewal~~is ~~options~~the ~~for~~parent ~~terms~~company of ~~not~~Cross ~~exceeding~~Environmental ~~one~~Services, ~~additional year~~Inc. ~~Leases~~(“CES”) ~~are~~which ~~for~~was ~~terms~~incorporated ~~ranging~~in ~~from~~1988 ~~month-to-month~~in tothe ~~one~~state ~~year~~of Florida. AsThe ofCompany acquired ~~December~~CES 31in a reverse merger transaction that closed on November 1, 2014, and CES is deemed the ~~Company’s~~accounting ~~total~~acquirer ~~future~~under ~~minimum~~accounting ~~lease~~rules ~~payments~~(see ~~under~~Note ~~non-cancelable~~14). ~~operating~~The ~~leases~~Company ~~were~~is ~~$22.75~~an ~~per~~asbestos ~~month,~~and orlead ~~$273~~abatement contracting firm specializing in the ~~aggregate~~removal ~~for~~of asbestos ~~the~~and ~~full~~lead ~~term~~from buildings and other structures, and demolition of structures. The Company’s services include removal of ~~all~~asbestos ~~such~~and ~~leases~~lead, ~~all~~construction, installation, and repair of ~~which~~ceilings and insulation systems and demolition. Most of the Company’s jobs are ~~leases~~located ~~for~~within ~~office~~the ~~space~~state of Florida, but the Company accepts and performs jobs throughout the southeastern United States.

21NOTE 2 - Summary of Significant Accounting Policies

~~Other~~This summary ~~Obligations~~of significant accounting policies of the Company is presented to assist in understanding the Company’s financial statements.

InThe Company ~~addition~~follows to the ~~contractual~~accrual ~~obligations mentioned~~basis ~~above,~~of ~~the~~accounting ~~Company~~in ~~had~~accordance ~~outstanding~~with ~~commitments~~accounting toprinciples ~~lease~~generally ~~copiers~~accepted ~~totaling $46~~ in the ~~aggregate~~United ~~for~~States of ~~the~~America ~~full~~(“US ~~term~~GAAP”) ofand ~~all such~~has ~~leases~~adopted asa year-end of December 31~~, 2014~~.

~~Indemnification~~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.

~~The~~Management further ~~Company~~acknowledges ~~generally~~that ~~does~~it ~~not~~is ~~indemnify~~solely responsible for adopting sound accounting practices consistently applied, establishing ~~its~~and ~~customers~~maintaining ~~against~~a ~~legal~~system ~~claims~~of ~~arising~~internal ~~from~~accounting ~~services~~control itand ~~provides~~preventing and detecting fraud. The Company’s ~~has~~system ~~not~~of ~~been~~internal accounting ~~required~~control is designed to ~~make~~assure, ~~any~~among ~~significant~~other items, that 1) recorded transactions are valid; 2) valid transactions are ~~payments~~recorded; ~~resulting~~and ~~from~~3) ~~such~~transactions ~~services~~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.

~~The Company has entered into indemnification~~Basis agreements with its directors and executive officers. Under these agreements, the Company has agreed to indemnify such individuals to the fullest extent permitted by law against liabilities that arise by reason of their status as directors or officers and to advance expenses incurred by such individuals in connection with related legal proceedings. It is not possible to determine the maximum potential amount of payments the Company could be required to make under these agreements due to the limited history of prior indemnification claims and the unique facts and circumstances involved in each claim. However, the Company maintains directors and officers liability insurance coverage to reduce its exposure to such obligations, and payments made under these agreements historically have not been material.Presentation

~~ITEM~~The Consolidated 7AFinancial Statements include the accounts of the Company and its wholly-owned subsidiaries. ~~QUANTITATIVE~~These ~~AND~~include ~~QUALITATIVE~~the ~~DISCLOSURES~~accounts of ~~ABOUT~~CES, ~~MARKET~~and ~~RISK~~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.

~~Not~~Use of ~~applicable.~~Estimates

22The 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.

~~ITEM~~Fair Value 8.of ~~FINANCIAL~~Financial ~~STATEMENTS~~Instruments

~~John~~For certain ~~Scrudato~~financial ~~CPA~~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.

7The Company ~~Valley~~has ~~View~~adopted ~~Drive~~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:

~~Califon~~● 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, ~~New~~and ~~Jersey~~inputs ~~07830~~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.

~~908~~F-~~534-0008~~6

~~REPORT~~The Company OFdid ~~INDEPENDENT~~not ~~REGISTERED~~identify any non-recurring assets and liabilities that are required to be presented in the balance sheets at fair ~~PUBLIC~~value ~~ACCOUNTING~~in ~~FIRM~~ accordance with ASC 815.

ToIn February 2007, the ~~Board~~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 ~~Directors~~the beginning of an entity’s first fiscal year that begins after November 15, 2007.

~~CES~~The carrying ~~Synergies~~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, ~~Inc~~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.

~~We have audited the accompanying balance sheet~~Revenue ~~of CES Synergies, Inc.~~ and ~~its~~Cost 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.Recognition

~~We conducted our audit in accordance with the~~The ~~standards of the Public~~ Company ~~Accounting~~follows ~~Oversight~~ASC ~~Board~~605-35 ~~(United~~"Revenue ~~States).~~Recognition: ~~Those~~Construction ~~standards~~type ~~require~~contracts" ~~that~~and werecognizes ~~plan~~revenues ~~and~~from ~~perform the~~fixed-price ~~audit~~and tomodified ~~obtain~~fixed-price ~~reasonable~~construction ~~assurance~~contracts ~~about~~on ~~whether~~ the ~~financial statements are free~~ percentage-of-completion ~~material misstatement. The Company is not required to have~~method, ~~nor~~measured ~~were~~by wethe ~~engaged~~percentage ~~to perform, an audit~~ of ~~its~~cost ~~internal controls over financial reporting. Our audit included~~incurred ~~consideration~~to ofdate ~~internal~~to ~~control~~estimated ~~over~~total ~~financial~~cost ~~reporting as a basis~~ for ~~designing~~each ~~audit~~contract. ~~procedures~~This ~~that~~method ~~are~~is ~~appropriate~~used inbecause ~~the circumstances,~~management ~~but~~considers ~~not~~total ~~for~~cost ~~the~~to ~~purpose~~be ~~of expressing an opinion on~~ the ~~effectiveness of the Company’s internal control over~~best ~~financial~~available ~~reporting.~~measure ~~Accordingly,~~of weprogress ~~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 presentationcontracts. ~~We believe that our audit provides a reasonable basis for our opinion.~~

InContract costs ~~our~~include ~~opinion~~all ~~based~~direct onmaterial ~~our~~and ~~audit,~~labor ~~the~~costs ~~financial statements~~and ~~referred~~those toindirect ~~above~~costs ~~present~~related ~~fairly~~to contract performance, insuch ~~all~~as ~~material~~indirect ~~respects~~labor, supplies, ~~the~~tools, ~~financial~~repairs, ~~position~~and ofdepreciation. ~~CES~~Selling, ~~Synergies~~general, ~~Inc.~~ and ~~its~~administrative ~~subsidiaries~~ costs are charged to expenses as ofincurred. ~~December~~Provisions for ~~31,~~estimated ~~2014~~losses ~~and~~on ~~2013~~uncompleted contracts, ~~and~~if any, are made in the ~~results~~period ofin ~~its~~which ~~operations~~such losses are determined. Changes in job performance, ~~stockholders’~~job ~~equity~~conditions, and ~~its~~estimated ~~cash~~profitability ~~flows~~may ~~for~~result ~~the~~in ~~years then~~revisions ~~ended,~~to incosts ~~conformity~~and ~~with~~income ~~accounting~~which ~~principles~~are ~~generally~~recognized in ~~accepted~~the period in which the ~~United~~revisions ~~States~~are determined.

~~/s/~~The asset, ~~John~~"Costs ~~Scrudato~~and ~~CPA~~estimated earnings in excess of billings on uncompleted contracts," represents revenues recognized in excess of amounts billed.

~~Califon~~The liability, ~~New~~"Billings ~~Jersey~~in excess of costs and estimated earnings on uncompleted contracts," represents billings in excess of revenues recognized.

~~March~~Contract retentions ~~20,~~are ~~2014~~included in contracts receivable.

~~F-1~~Cash and Cash Equivalents

~~CONSOLIDATED~~For purposes ~~STATEMENT~~of OFreporting ~~OPERATIONS~~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.

	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

Concentrations of Credit Risk

~~See~~The Company ~~accompanying~~maintains ~~Notes~~cash balances at Centennial Bank located in Central Florida. The cash accounts are insured by the Federal Deposit Insurance Corporation up to ~~Consolidated~~$250,000. At December 31, 2015 and 2014, the Company’s uninsured cash balances for those accounts ~~Financial~~were ~~Statements~~$0.

~~F-2~~Special Purpose Entities

~~CONSOLIDATED~~The Company ~~BALANCE~~does ~~SHEET~~not have any off-balance sheet financing activities.

	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

Contracts Receivable

~~See~~Contracts receivable ~~accompanying~~are ~~Notes~~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 ~~Consolidated~~be uncollectible. The allowance for doubtful accounts is estimated ~~Financial~~based ~~Statements~~on the Company's historical average percentage of bad debts in relation to its revenue.

~~F-3~~Inventory, Net

~~CONSOLIDATED~~Inventories consist ~~STATEMENT~~primarily OFof ~~STOCKHOLDERS’ EQUITY~~job materials and supplies and are priced at the lower of cost (first-in, first-out) or market.

	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

F-7

~~See accompanying Notes to Consolidated~~Property, ~~Financial~~Plant ~~Statements~~and Equipment

~~F-4~~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.

~~CONSOLIDATED~~Depreciation is ~~STATEMENT~~calculated OFusing ~~CASH~~the ~~FLOWS~~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:

	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

Equipment

3-10 years

~~See~~The Company ~~accompanying~~reviews ~~Notes~~property, toplant ~~Consolidated~~and equipment and all amortizable intangible assets for impairment whenever events or changes ~~Financial~~in ~~Statements~~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.

FImpairment of Long-5Lived Assets and Amortizable Intangible Assets

~~NOTE~~The Company 1follows 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, 2015, the Company ~~Background~~had not experienced impairment losses on its long-lived assets.

~~CES Synergies,~~Intangible ~~Inc.~~Assets ~~(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.Goodwill

~~NOTE~~Cost of 2investment 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 ~~Summary~~process. In the first step, the fair value of ~~Significant~~a ~~Accounting~~reporting ~~Policies~~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, 2015 and 2014.

~~This summary of significant accounting~~Business ~~policies of the Company is presented to assist in understanding the Company’s financial statements.~~Segments

~~The~~ASC 280, ~~Company~~“Segment ~~follows~~Reporting” ~~the~~requires ~~accrual~~use ~~basis~~ of ~~accounting~~the in“management ~~accordance~~approach” ~~with~~model ~~accounting~~for ~~principles~~segment ~~generally~~reporting. The ~~accepted~~management inapproach model is based on the ~~United~~way ~~States~~a ofcompany’s ~~America~~management ~~(“US~~organizes ~~GAAP”)~~segments within the company for making operating decisions and assessing performance. The Company determined it has ~~adopted~~three aoperating ~~year-end~~segments as of December 31, 2015 and December 31, 2014.

~~The preparation of financial statements~~Income 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.Taxes

~~Management~~Tax expense ~~further~~comprises ~~acknowledges~~current ~~that it~~and deferred tax. Current tax and deferred tax is ~~solely~~recognized ~~responsible~~in ~~for~~profit ~~adopting~~or ~~sound~~loss ~~accounting~~except ~~practices~~to ~~consistently~~the ~~applied,~~extent that ~~establishing~~it ~~and~~relates ~~maintaining~~to a ~~system~~business ~~of internal~~combination, ~~accounting~~or ~~control~~items ~~and~~recognized ~~preventing~~directly ~~and~~in ~~detecting~~equity ~~fraud~~or in other comprehensive income. ~~The~~Current ~~Company’s~~tax is ~~system~~the ofexpected ~~internal~~tax ~~accounting~~payable ~~control~~or isreceivable ~~designed to~~on ~~assure~~the taxable income or loss for the year, ~~among~~using ~~other~~tax ~~items~~rates enacted or substantively enacted at the reporting date, ~~that~~and 1)any ~~recorded~~adjustment ~~transactions~~to ~~are~~tax ~~valid;~~payable 2)in ~~valid~~respect ~~transactions~~of ~~are~~previous ~~recorded;~~years. ~~and~~Current 3)tax ~~transactions~~payable also includes ~~are~~any ~~recorded~~tax inliability arising from the ~~proper~~declaration ~~period~~of individends. aDeferred ~~timely~~tax ~~manner~~would tobe ~~produce~~recognized ~~financial~~in ~~statements~~respect ~~which~~of ~~present~~temporary ~~fairly~~differences between the ~~financial~~carrying ~~condition, results~~amounts of ~~operations~~assets and ~~cash~~liabilities ~~flows~~for offinancial reporting purposes and the ~~Company~~amounts used for taxation purposes. No deferred tax is recognized since the ~~respective~~difference ~~periods~~in ~~being~~carrying ~~presented~~amount is not significant.

~~Basis~~Net Income of(Loss) ~~Presentation~~Per Share

The Company ~~Consolidated~~computes ~~Financial~~net ~~Statements include~~income ~~the~~(loss) ~~accounts~~per ofshare ~~the~~in ~~Company~~accordance ~~and~~with ~~its~~ASC ~~wholly~~260-~~owned~~10, ~~subsidiaries~~“Earnings Per Share.” ~~These~~The ~~include~~basic net income (loss) per common share is computed by dividing the ~~accounts~~net income (loss) by the weighted average number of common shares ~~CES,~~outstanding. ~~and~~Diluted ~~its~~net ~~wholly owned~~income ~~subsidiaries,~~(loss) ~~Cross Demolition,~~per ~~Inc.,~~share ~~Cross Insulation,~~gives ~~Inc.,~~effect ~~Cross Remediation,~~to ~~Inc.,~~all ~~Cross~~dilutive ~~FRP, Inc.,~~potential ~~Triple~~common Jshares ~~Trucking, Inc.,~~outstanding ~~and~~during ~~Tenpoint~~the period ~~Trucking,~~using ~~Inc~~the “as if converted” basis. ~~All~~For ~~significant~~the ~~intercompany~~years ~~account~~ended ~~balances,~~December ~~transactions~~31, ~~profits~~ 2015 and ~~losses~~2014, ~~have~~there ~~been~~were ~~eliminated~~no potential dilutive securities.

~~Use of Estimates~~F-8

~~The preparation of financial statements~~Common 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.Stock

~~F-6~~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, 2015 was 250,000,000 and at December 31, 2014 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 46,880,500 common shares at December 31, 2015 compared to 46,525,000 common shares at December 31, 2014.

~~Fair Value of Financial Instruments~~Comprehensive Income

~~For~~Comprehensive income ~~certain~~represents ~~financial~~net ~~instruments,~~income ~~including accounts~~plus ~~receivable,~~the ~~accounts~~change ~~payable,~~in ~~accrued~~equity ~~expenses,~~of ~~interest~~a ~~payable,~~business ~~advances~~enterprise ~~payable~~resulting from transactions and ~~notes~~circumstances from ~~payable,~~non-owner ~~the~~sources. ~~carrying~~The ~~amounts approximate~~Company’s ~~fair~~comprehensive ~~value~~income ~~due~~was equal to ~~their~~net ~~relatively~~income ~~short~~for ~~maturities~~the periods ended December 31, 2015 and 2014.

~~The Company has adopted ASC 820-10,~~NOTE ~~“Fair~~3 ~~Value Measurements and Disclosures.” ASC 820~~-10 ~~defines~~Recent ~~fair~~Accounting 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:Pronouncements

●No. 2012-02, ~~Level~~July 12012, ~~inputs~~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 ~~valuation~~existence ~~methodology~~of ~~are~~events ~~quoted~~and ~~prices~~circumstances ~~for~~indicates ~~identical~~that ~~assets~~it is ormore ~~liabilities~~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 ~~active~~accordance ~~markets~~with Subtopic 350-30.

●No. 2012-06, ~~Level~~October 22012, ~~inputs~~Business toCombinations ~~the~~(Topic ~~valuation~~805): ~~methodology~~When ~~include~~a ~~quoted~~reporting ~~prices~~entity ~~for~~recognizes ~~similar~~an ~~assets~~indemnification asset (in accordance with Subtopic 805-20) as a result of a government-assisted acquisition of a financial institution and ~~liabilities~~subsequently a change in the ~~active~~cash ~~markets~~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), ~~and~~the ~~inputs~~reporting ~~that~~entity ~~are~~should ~~observable~~subsequently account for the change in the measurement of the indemnification asset oron ~~liability,~~the ~~either~~same ~~directly~~basis oras ~~indirectly,~~the ~~for~~change ~~substantially~~in the ~~full~~assets subject to indemnification. Any amortization of changes in value should be limited to the contractual term of the ~~financial~~indemnification ~~instrument~~agreement (that is, the lesser of the term of the indemnification agreement and the remaining life of the indemnified assets).

●No. 2014-01, ~~Level~~January 32014, ~~inputs~~Balance toSheet ~~the~~(Topic ~~valuation~~210): ~~methodology~~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 ~~unobservable~~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 ~~significant~~financial liabilities subject to a master netting arrangement or similar agreement also are affected because these amendments make them no longer subject to the ~~fair~~disclosure ~~value~~requirements ~~measurement~~in Update 2011-11.

~~The~~NOTE 4 ~~Company did not identify any non~~-~~recurring assets~~ ~~and~~Contracts ~~liabilities that are required to be presented in the balance sheets at fair value in accordance with ASC 815.~~Receivable

~~In February 2007, the FASB issued ASC~~Contracts ~~825-10~~Receivable ~~“Financial~~consist 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.~~at:

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.

	December 31, 2015			December 31, 2014
Billed
Completed Contracts	$	2,766,670		$	4,146,946
Contracts in Progress		1,368,742			1,652,910
Retained		663,596			766,418
Allowance for Bad Debts		(199,877	)		(201,000	)
Total	$	4,599,131		$	6,365,274

~~Revenue~~NOTE 5 ~~and~~- ~~Cost~~Property, ~~Recognition~~Plant and Equipment

~~The Company~~Property, ~~follows~~plant ~~ASC 605-35 "Revenue Recognition: Construction type contracts"~~ and ~~recognizes revenues~~equipment ~~from fixed-price~~ and ~~modified~~related ~~fixed-price construction~~accumulated ~~contracts~~depreciation onconsist ~~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.following:

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.

	December 31, 2015			December 31, 2014

Machinery and Equipment	$	4,137,045		$	3,847,408
Office Furniture and Equipment		172,636			172,635
Transportation and Earth Moving Equipment		8,844,666			8,717,743
Leasehold Improvements		30,189			30,189
Property, Plant and Equipment Gross		13,184,536			12,767,975
Less: Accumulated Depreciation		(11,186,378	)		(10,650,758	)
Property, Plant and Equipment Net	$	1,998,158		$	2,117,217

~~The asset,~~Depreciation ~~"Costs~~expense ~~and~~for ~~estimated~~the ~~earnings in~~twelve ~~excess~~months ~~of billings~~ended onDecember ~~uncompleted contracts~~31," ~~represents~~2015 ~~revenues~~and ~~recognized in~~2014 ~~excess~~was of$535,620 ~~amounts billed~~and $578,427, respectively.

F-79

~~The liability,~~NOTE ~~"Billings~~6 in- ~~excess of~~Costs ~~costs~~ and ~~estimated~~ ~~earnings~~Estimated Earnings on ~~uncompleted~~ ~~contracts," represents billings in excess of revenues recognized.~~Contracts

~~Contract retentions~~For ~~are~~the ~~included~~year ~~in contracts~~ended ~~receivable.~~December 31, 2015:

Cash and Cash Equivalents

	Revenues Earned		Cost of Revenues		Gross Profit

Revenue on completed contracts	$	14,800,227	$	12,573,012	$	2,227,215
Revenue on uncompleted contracts		3,927,920		2,594,875		1,333,045
Total for 12 months ended 12/31/15	$	18,728,147	$	15,167,887	$	3,560,260

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.

	As of Dec 31, 2015:
Costs incurred on uncompleted contracts		2,739,744
Estimated earnings on uncompleted contracts		1,374,893
Revenues earned on uncompleted contracts		4,114,637
Billings to date		3,725,485
Total Net Amount	$	389,152

Amount shown as cost and estimated earnings in excess of billings on uncompleted contracts	$	690,550
Amount shown as billings in excess of costs and estimated earnings on uncompleted contracts		(301,398	)

Total Net Amount	$	389,152

~~Concentrations~~For the ofyear ~~Credit~~ended ~~Risk~~December 31, 2014:

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.

	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

Special Purpose Entities

	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	)

~~The Company does not have any off~~F-~~balance sheet financing activities.~~10

~~Contracts~~NOTE 7 ~~Receivable~~- Long-Term Debt

~~Contracts~~Long-term ~~receivable~~debt ~~are~~consists ~~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~~following ~~average~~at ~~percentage~~December of31, ~~bad~~2015 ~~debts in~~and ~~relation to its revenue.~~2014:

Inventory, Net

	12/31/2015			12/31/2014

Demand loan from Shareholder, Clyde Biston, payable in monthly payments of $4,632 deferred until January 2017, interest rate of 4.25%.	$	254,203		$	273,273

Demand Loan from Shareholder, Clyde Biston, quarterly payments of $1,908 deferred until Jan. 2017; interest rate of 4.75%		158,092			-

Demand Loan from Shareholder, Clyde Biston, quarterly payments of $9,922 deferred until Jan. 2017; interest rate of 4.75%		175,000			-

Demand Loan from Shareholder, Clyde Biston, quarterly payments of $9,881 deferred until Jan. 2017; interest rate of 4.75%		175,000			-

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, 2016		1,750,300			1,750,300

Installment loan from shareholder, Clyde Biston. Payable in monthly payments of $23,994, interest rate of 6.15%. Deferred until January 2017		2,656,803			2,721,450

Various installment loans payable in monthly payments, interest rates ranging from 0% to 9.5%, secured by various equipment, vehicles, and property		904,016			938,200

Total		6,073,414			5,683,223
Less: Current portion		(2,208,250	)		(2,346,057	)
Long-term debt, less current portion	$	3,865,164		$	3,337,166

~~Inventories~~NOTE ~~consist~~8 ~~primarily~~- ~~of job~~Commitments ~~materials~~ and ~~supplies~~ ~~and are priced at the lower of cost (first-in, first-out) or market.~~Contingencies

~~Property,~~Principal payments ~~Plant~~on ~~and~~long-term ~~Equipment~~debt are due as follows:

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.

Year ending December 31,
2016	$	2,208,250
2017		510,013
2018		351,543
2019		328,541
2020+		2,675,067
	$	6,073,414

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:Contingencies

~~Equipment 3-10 years~~None.

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.F-11

FNOTE 9 -8 Earnings per Share

Impairment of Long-Lived Assets and Amortizable Intangible Assets

	12/31/2015			12/31/2014

Net Income/ (Loss)	$	(1,063,786	)	$	(503,011	)
Weighted-average common shares outstanding
Basic:		46,942,227			46,730,500

Weighted-average common stock
Equivalents		-			-
Stock Options		-			-
Warrants		-			-
Convertible Notes		-			-

Weighted-average common shares outstanding
Diluted		46,942,227			46,730,500
Earnings/(loss) per common shares outstanding
Basic and Diluted	$	(0.023	)	$	(0.011	)

~~The Company follows ASC 360-~~NOTE 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~~Operating toLease 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.Agreements

~~Intangible~~In the ~~Assets~~past, -the ~~Goodwill~~Company rented certain equipment/office space under month to month operating lease agreements. Lease expenses incurred as of December 31, 2015 and 2014 under such agreements were $340,965, and $378,485, respectively.

~~Cost of~~NOTE ~~investment~~11 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.~~Related InParty 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.Transactions

~~Business~~For the ~~Segments~~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.

~~ASC~~Related parties ~~280,~~may ~~“Segment~~enter ~~Reporting” requires~~into ~~use~~transactions ofwhich ~~the~~unrelated ~~“management~~parties ~~approach”~~might ~~model~~not, ~~for~~and ~~segment~~transactions ~~reporting.~~between ~~The~~related ~~management~~parties ~~approach~~may ~~model~~not isbe ~~based~~effected on the ~~way~~same aterms, ~~company’s~~conditions ~~management~~and ~~organizes~~amounts ~~segments~~as ~~within~~transactions ~~the~~between ~~company~~unrelated ~~for~~parties. ~~making~~Our ~~operating~~President ~~decisions~~ and ~~assessing~~Chief ~~performance.~~Executive Officer ~~The~~owns ~~Company~~a ~~determined~~majority itof ~~has~~our ~~three~~shares, ~~operating~~meaning ~~segments~~he ascan ofexert ~~December~~significant ~~31,~~influence ~~2014~~over ~~and~~corporate ~~December~~decisions ~~31,~~and ~~2013~~strategy. Related party transactions for the period include the following:

~~Income Taxes~~Leased Facilities

~~Tax expense comprises current and deferred~~The ~~tax.~~Company ~~Current~~operates ~~tax~~primarily ~~and~~out ~~deferred~~of ~~tax~~facilities isowned ~~recognized~~by inthe ~~profit~~majority orshareholder ~~loss~~of ~~except to~~ the ~~extent~~Company. ~~that~~Beginning itin ~~relates~~June ~~to a business combination~~1995, or ~~items recognized directly in equity or in other comprehensive income. Current tax is~~ the ~~expected~~Company was ~~tax~~allowed ~~payable~~to oruse ~~receivable on~~ the ~~taxable~~facilities ~~income~~rent-free. orAs ~~loss~~of ~~for~~November ~~the~~1, ~~year~~2013, ~~using~~the ~~tax~~Company ~~rates~~entered ~~enacted~~into ora ~~substantively~~lease ~~enacted~~agreement atwith the ~~reporting date, and any adjustment~~shareholder tofor ~~tax~~rental ~~payable in respect~~ of ~~previous~~the ~~years~~facilities. ~~Current~~As ~~tax~~of ~~payable~~June ~~also~~1, ~~includes~~2015 ~~any~~the ~~tax~~shareholder ~~liability~~reduced ~~arising from~~ the ~~declaration~~rent ~~of dividends.~~payable ~~Deferred~~on ~~tax~~the ~~would~~Crystal beSprings ~~recognized~~facility inby ~~respect~~50%. Rental ofexpenses ~~temporary~~incurred ~~differences~~for ~~between~~ the ~~carrying~~12 ~~amounts~~months ofended ~~assets~~December ~~and~~31, ~~liabilities for~~2015 ~~financial~~under ~~reporting purposes and~~ the ~~amounts~~lease ~~used~~agreement for ~~taxation purposes. No deferred tax is recognized since~~ the ~~difference~~shareholder-owned facilities inwere ~~carrying amount is not significant~~$135.

~~Net~~NOTE 12 ~~Income~~- ~~(Loss)~~401K ~~Per~~Salary ~~Share~~Deferral Plan

The Company ~~computes~~has ~~net~~established ~~income~~a ~~(loss) per~~deferred ~~share~~benefit inplan ~~accordance~~for ~~with~~office ~~ASC~~and ~~260-10,~~managerial ~~“Earnings~~staff ~~Per~~with ~~Share.”~~one ~~The~~year ~~basic~~or ~~net~~more ~~income~~of ~~(loss)~~service. ~~per~~The ~~common~~plan ~~share~~allows isemployees ~~computed~~to bycontribute ~~dividing~~through ~~the~~salary ~~net income (loss) by the weighted average number of common shares outstanding~~withholding. ~~Diluted~~The ~~net~~Company ~~income~~may ~~(loss) per~~match ~~share~~the ~~gives~~contribution ~~effect~~up to ~~all~~3% ~~dilutive~~of ~~potential~~the ~~common~~gross ~~shares~~wages ~~outstanding~~of ~~during~~ the employee. ~~period~~Amounts ~~using~~contributed by the ~~“as~~Company iffor ~~converted” basis. For~~ the ~~years~~twelve months ended December 31, ~~2014~~2015 and ~~2013,~~2014 ~~there~~are ~~were~~$0 noand ~~potential~~$0, ~~dilutive securities~~respectively.

FNOTE 13 -9 Income Tax Provisions

~~Common~~Management of ~~Stock~~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.

~~The Company currently has only one class~~For offinancial ~~common~~reporting ~~stock.~~purposes, ~~Each~~income ~~share~~before ofincome ~~common~~taxes ~~stock~~includes ~~is entitled to one vote. The authorized number of shares of common stock of~~ the ~~Company at~~following 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.components:

Comprehensive Income

	2015			2014
United States	$	(1,063,786	)	$	(503,011	)
Foreign		-			-
Total	$	(1,063,786	)	$	(503,011	)

~~Comprehensive income represents net income plus the change in equity of a business enterprise resulting from transactions and circumstances from non~~F-~~owner sources. The Company’s comprehensive income was equal to net income for the periods ended December 31, 2014 and 2013.~~12

NOTE 3 – Recent Accounting Pronouncements

The expense(benefit) for income taxes consists of:

Current:	2015			2014
Federal	$	(607,589	)	$	69,025
State		(111,391	)		12,314
Foreign		-			-
Total	$	(718,980	)	$	81,339
Deferred and other:
Federal	$	-		$	-
State		-			-
Foreign		-			-

Total tax expense	$	(718,980	)	$	81,339

~~No. 2012-02, July 2012, Intangibles—Goodwill~~The ~~and~~Company ~~Other (Topic 350): In accordance with the amendments in this update, an entity~~ has ~~the~~net ~~option~~operating ~~first~~loss tocarryforwards ~~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~~$2, ~~after assessing the totality of events and circumstances~~025,295 anavailable ~~entity~~at ~~concludes~~December ~~that it is not more likely than not that the indefinite-lived intangible asset is impaired~~31, ~~then~~2015 ~~the~~and ~~entity~~has isrecorded ~~not~~a ~~required~~deferred totax ~~take further action.~~asset ~~However,~~of ~~if an entity concludes otherwise~~$718,980 ~~then~~reflecting ~~it is required to determine~~ the ~~fair~~benefit ~~value~~ of the ~~indefinite-lived~~loss ~~intangible~~carryforwards. ~~asset and~~Such ~~perform~~deferred ~~the~~tax ~~quantitative~~assets ~~impairment~~will ~~test~~expire ~~by comparing the fair value with the carrying amount~~ in ~~accordance~~years ~~with~~2034 ~~Subtopic~~through ~~350-30~~2035.

~~No. 2012-06, October 2012, Business~~NOTE ~~Combinations~~14 ~~(Topic 805): When a reporting entity recognizes an indemnification asset (in accordance with Subtopic 805~~-~~20)~~ asReverse 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).Acquisition

~~No.~~On November 1, 2013~~-01~~, ~~January~~CES ~~2013~~entered into an Agreement and Plan of Merger (the “Merger Agreement”), ~~Balance~~with ~~Sheet~~CES Acquisitions, ~~(Topic~~Inc. ~~210~~(“Subsidiary”):, ~~The~~and ~~amendments~~CES inSynergies, ~~this~~Inc., ~~Update~~a ~~affect~~shell ~~entities~~company that ~~have~~traded ~~derivatives~~on ~~accounted~~the ~~for~~OTC inbulletin ~~accordance~~board. ~~with~~Pursuant ~~Topic~~to ~~815~~the Merger Agreement, ~~including bifurcated~~the ~~embedded~~Subsidiary ~~derivatives~~merged into CES, ~~repurchase~~such ~~agreements~~that CES became a wholly-owned subsidiary of the Company (the “Merger”); and ~~reverse~~the ~~repurchase~~Company ~~agreements~~issued 35,000,000 ~~and~~shares ~~securities~~of ~~borrowing~~the ~~and~~Company’s ~~securities lending~~common ~~transactions~~stock ~~that~~to ~~are~~the ~~either~~shareholders ~~offset~~of inCES ~~accordance~~(the ~~with~~“Acquisition Shares”), ~~Section~~representing ~~210-20-45~~approximately or75.2% ~~Section~~of ~~815-10-45~~the orCompany’s ~~subject~~aggregate toissued anand ~~enforceable~~outstanding common stock following ~~master~~the ~~netting~~closing ~~arrangement~~of orthe ~~similar~~Merger ~~agreement~~Agreement. ~~Entities~~The ~~with~~share ~~other~~exchange ~~types~~is ofbeing ~~financial~~accounted ~~assets~~for as a recapitalization, and ~~financial~~not ~~liabilities~~as ~~subject~~a business combination tounder athe ~~master~~scope ~~netting~~of ~~arrangement~~FASB orASC ~~similar~~Topic ~~agreement~~805. ~~also~~CES ~~are~~is ~~affected~~the ~~because~~acquirer ~~these~~for ~~amendments~~accounting ~~make~~purposes ~~them~~and noCES ~~longer~~Synergies, ~~subject~~Inc., to is the ~~disclosure~~acquired ~~requirements~~company. Accordingly, inCES’s ~~Update~~subchapter ~~2011-11~~S corporate status was terminated on November 1, 2013.

FNOTE 15 -10 Subsequent Events

~~NOTE~~The Company 4has -performed ~~Contracts~~an ~~Receivable~~evaluation of subsequent events through March 30, 2016, the date the accompanying financial statements were issued, and did not identify any material subsequent transactions that require disclosure.

~~Contracts~~NOTE 16 ~~Receivable~~- ~~consist~~Segment ~~of at:~~Information

	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

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.

~~NOTE~~Remediation is 5one -segment ~~Property~~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, ~~Plant~~Insulation, derives its revenue from re-insulation and ~~Equipment~~insulation of new and remodeling projects.

~~Property,~~The information ~~plant~~provided ~~and~~below ~~equipment~~is ~~and~~obtained ~~related~~from ~~accumulated~~internal ~~depreciation~~information that is provided to the Company’s chief operating decision ~~consist~~maker offor the ~~following~~purpose of corporate management. The Company uses operating income (loss) to measure segment performance as recorded below:

	December 31,2014			December 31, 2013
	Years ended December 31,
Machinery and Equipment	$	3,847,408		$	3,569,815
	2015			2014
Office Furniture and Equipment		172,635			91,676
Remediation Segment
Transportation and Earth Moving Equipment		8,717,743			8,548,243
Revenue	$	9,020,978		$	9,976,891
Leasehold Improvements		30,189			24,000
Cost of Revenues		8,142,979			7,073,954
Property, Plant and Equipment Gross		12,767,975			12,233,734
Gross Profit		877,999			2,902,937
Less: Accumulated Depreciation		(10,650,758	)		(10,072,916	)
General & Administrative Expense		2,469,926			2,710,398
Property, Plant and Equipment Net	$	2,117,217		$	2,160,818
Other (Income)/Expense		7,434			7,308
Net Income (Loss) from Segment	$	(1,599,261	)	$	185,231

~~Depreciation expense for the twelve months ended December 31, 2014 and 2013 was $578,427 and $623,726, respectively.~~F-13

F-11

	Years ended December 31,
	2015		2014
Demolition Segment

Revenue	$	9,236,717	$	10,370,300
Cost of Revenues		6,921,317		8,749,506
Gross Profit		2,315,400		1,620,794

General & Administrative Expense		1,706,876		2,213,444
Other (Income)/Expense		32,470		16,248

Net Income (Loss) from Segment	$	576,054	$	(608,898	)

NOTE 6 - Costs and Estimated Earnings on Contracts

	Years ended December 31,
	2015			2014
Insulation Segment

Revenue	$	470,453		$	553,389
Cost of Revenues		369,003			463,973
Gross Profit		101,450			89,416

General & Administrative Expense		141,799			169,630
Other (Income)/Expense		130			(870	)

Net Income from Segment	$	(40,479	)	$	(79,344	)

~~For the year ended December 31, 2014:~~F-14

	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

ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE

	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	)

None.

~~For~~ITEM 9A. ~~the~~CONTROLS ~~twelve~~AND ~~months ended December 31, 2013:~~PROCEDURES

	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

Evaluation of Disclosure Controls and Procedures

	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

Disclosure controls and procedures are controls and other procedures that are designed to ensure that information required to be disclosed by us in the reports that we file or submit under the Exchange Act is recorded, processed, summarized and reported, within the time periods specified in the Securities and Exchange Commission's rules and forms. Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed by us in the reports that we file under the Exchange Act is accumulated and communicated to our management, including our principal executive and financial officers, as appropriate to allow timely decisions regarding required disclosure.

FAs of the end of the period covered by this Annual Report on Form 10-12K, we conducted an evaluation, under the supervision and with the participation of our Chief Executive Officer and Chief Financial Officer, of our disclosure controls and procedures (as defined in Rule 13a-15(e) and Rule 15d-15(e) of the Exchange Act). Based upon this evaluation, our Chief Executive Officer and Chief Financial Officer concluded that the Company’s disclosure controls and procedures are effective as of the end of the period covered by this Annual Report on Form 10-K to ensure that information required to be disclosed by the Company in the reports that we file or submit under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission’s rules and forms and also are effective in ensuring that information required to be disclosed by the Company in the reports that it files or submits under the Exchange Act is accumulated and communicated to the Company’s management, including the Company’s Chief Executive Officer and Chief Financial Officer, as appropriate to allow timely decisions regarding required disclosure.

~~NOTE 7~~Management's –Report ~~Long-Term~~on ~~Debt~~Internal Control over Financial Reporting

~~Long-term~~Management is ~~debt~~responsible ~~consists~~for establishing and maintaining adequate internal control over financial reporting of the ~~following~~Company. atBecause ~~December~~of its 31inherent limitations, internal control over financial reporting may not prevent or detect all misstatements. Also, projections ~~2014~~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 and ~~2013:~~procedures may deteriorate.

	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

Management, with the participation of our Chief Executive Officer and Chief Financial Officer, has evaluated the effectiveness of our internal control over financial reporting as of December 31, 2015 based on criteria established in Internal Control-Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission. Based on this evaluation, management concluded that, as of December 31, 2015, our internal control over financial reporting is effective in providing reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with U.S. generally accepted accounting principles.

FThis Annual Report on Form 10-13K does not include an attestation report of the Company’s independent registered public accounting firm regarding internal control over financial reporting. Management’s report is not subject to attestation by the Company’s independent registered public accounting firm pursuant to rules of the Securities and Exchange Commission that permit the Company to provide only management’s report in this Annual Report on Form 10-K.

~~NOTE 8~~Changes –in ~~Commitments~~Internal ~~and Contingencies~~Controls

~~Principal~~There have ~~payments~~been onno ~~long~~changes in our internal control over financial reporting identified in connection with the evaluation required by paragraph (d) of Rule 13a-~~term~~15 ~~debt~~or 15d-15 under the Exchange Act that occurred during the year ended December 31, 2015 that have materially affected, or are ~~due~~reasonably aslikely ~~follows:~~to materially affect, our internal control over financial reporting.

Year ending December 31,
2015	$	2,346,057
2016		549,004
2017		341,474
2018		231,751
2019+		2,214,937
	$	5,683,223

ITEM 9B. OTHER INFORMATION

~~Contingencies~~None.

~~None.~~20

~~NOTE 9 – Earnings per Share~~PART III

	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	)

ITEM 10. DIRECTORS, OFFICERS AND CORPORATE GOVERNANCE

~~F-14~~Below are the names and certain information regarding the Company’s executive officers and directors. Directors serve until the next annual meeting of shareholders or until their successors are elected and qualified. Officers serve at the discretion of the Board of Directors.

~~NOTE~~Name ~~10 -~~Position ~~Operating~~Clyde ~~Lease Agreements~~A. Biston President, Chairman of the Board of Directors John Tostanoski Chief Executive Officer, Director Sharon Rosenbauer Chief Financial Officer, Treasurer, Vice President James Smith Vice President Luisa Ingargiola Director Jeff Chartier Director Earl Young Director

InClyde A. Biston, age 66, is the founder and has been Chief Executive Officer of CES since 1988 and was the Chairman of the Board of ~~past,~~Directors and the Chief Executive Officer of the Company ~~rented~~ ~~certain~~from ~~equipment/office space~~September ~~under~~10, ~~month~~ 2014 to ~~month~~April ~~operating lease~~7, ~~agreements~~2015. ~~Lease~~ ~~expenses~~On April 7, 2015, Mr. Biston ~~incurred~~became asPresident of ~~December~~the 31Company, ~~2014~~when John Tostanoski was appointed Chief Executive Officer. Mr. Biston has served as Chairman of the Board of Directors since the Company’s inception and ~~2013~~President since May 20, 2015. Mr. Biston has over 40 years’ ~~under~~experience ~~such~~in ~~agreements~~the general construction and asbestos abatement industry. Prior to entering the abatement profession, he operated ~~were~~a ~~$378~~building contractor business. In the nine years prior to the formation of CES,~~485,~~ Mr. Biston personally supervised the removal of more than 2 million square feet of asbestos containing materials on projects in Florida and ~~$131~~Georgia,~~424,~~ as well as many large-scale ~~respectively~~demolition and remediation projects. Mr. Biston’s experience as founder of CES qualifies him to serve on the Company’s Board of Directors.

~~NOTE~~John Tostanoski, 11age 62, has been with CES since 2003 (as its General Manager of South Florida Operations) and has been a director -of ~~Related~~the ~~Party~~Company since November 1, 2014. Mr. Tostanoski served as President of the Company from November 1, 2014 until April 7, ~~Transactions~~2015, when he was appointed Chief Executive Officer. Mr. Tostanoski has over forty years of contracting and consulting experience in the environmental industry, including project management, analytical testing, contamination assessment and remediation, asbestos and lead assessment and remediation, indoor air quality, expert testimony and regulatory intervention. His responsibilities have included all aspects of administrative, financial, marketing, personnel, and quality oversight. Mr. Tostanoski has also served as a principal environmental consultant to several Fortune 500 companies, developing baseline and compliance monitoring programs, establishing hazardous waste management plans, indoor air quality surveys and monitoring, large scale asbestos surveys and abatements, industrial waste permitting and pretreatment design. Mr. Tostanoski received his BS in Environmental Sciences from Florida International University. Mr. Tostanoski’s contracting and consulting experience qualify him to serve on the Company’s Board of Directors.

~~For~~Sharon Rosenbauer, age 65, has been with CES since 1992 and has been the ~~purposes~~Chief ofFinancial ~~these~~Officer, ~~financial~~Treasurer, and Vice President of the ~~statements~~Company since November 1, ~~parties~~2014. ~~are~~She ~~considered~~started toat beCES ~~related~~as ifits ~~one~~sole ~~party~~bookkeeper, and has ~~the~~been ~~ability~~CES’s toVice ~~control~~President ~~the~~since ~~other~~2009 and ~~party~~Treasurer orsince ~~exercise~~1998. ~~significant influence~~Prior ~~over~~to ~~the~~joining ~~other~~CES, ~~party~~Ms. inRosenbauer ~~making~~worked ~~financial~~as oran ~~operational~~auditor ~~decisions.~~for Inboth ~~considering~~the ~~each~~Hilton ~~possible~~and ~~related~~Holiday ~~party~~Inn ~~relationship,~~Corporations. ~~attention~~Ms. isRosenbauer ~~directed~~was toalso ~~the~~employed ~~substance~~with ofGladieu Corporation as the ~~relationship,~~Price ~~not~~Administrator ~~merely~~and ~~the~~Contract ~~legal~~Negotiator ~~form~~with her primary focus in cost-accounting.

~~Related~~James Smith, ~~parties~~age ~~may~~57, ~~enter~~has ~~into~~been ~~transactions which~~with ~~unrelated~~CES ~~parties~~since ~~might~~1995 ~~not,~~(as ~~and~~its ~~transactions~~Head ~~between~~Project ~~related~~Manager), ~~parties~~has ~~may~~been ~~not~~the beVice ~~effected~~President onof the ~~same~~Company ~~terms,~~since ~~conditions~~November 1, 2014, and ~~amounts~~has asover ~~transactions~~20 ~~between~~years ~~unrelated~~of ~~parties.~~experience ~~Our~~in ~~President~~the ~~and~~supervision ~~Chief~~of ~~Executive~~asbestos ~~Officer~~abatement ~~owns~~projects athroughout ~~majority~~the ofUnited ~~our~~States ~~shares,~~and ~~meaning~~over he15 ~~can~~years ~~exert~~of ~~significant~~experience ~~influence~~in ~~over~~commercial ~~corporate~~general ~~decisions~~construction. ~~and strategy~~Mr. ~~Related~~Smith ~~party~~has ~~transactions~~experience ~~for~~as ~~the~~an ~~period~~operations ~~include~~manager, supervisor, and estimator of construction, abatement, remediation, and selective demolition projects throughout the ~~following:~~United States and abroad.

~~Leased~~Luisa ~~Facilities~~Ingargiola, age 47, has been the Chief Financial Officer of MagneGas Corporation (formerly 4307, Inc.) since May 4, 2007 and serves as its Chief Accounting Officer and served as its Secretary. Ms. Ingargiola is responsible for all financial controls, SEC and FINRA compliance and reporting; ensuring regulatory compliance with EPA, OSHA, DOT and Homeland Security requirements; managing all investor outreach programs; and conducting all capital raises. She served as Treasurer of MagneGas Corporation. In 1992, she joined MetLife Insurance Company and served as its Budget and Expense Manager. Ms. Ingargiola worked for Boston Capital Partners as an Investment Advisor in its Limited Partnership Division. She has been a Director of FTE Networks, Inc. since February 15, 2016. Ms. Ingargiola has been a Director of MagneGas Corporation since May 4, 2007 and CES Synergies Inc. since April 2015. She serves as a Board Director at The JBF Foundation Worldwide. She has been a Director of COPsync, Inc. since January 23, 2016. She served as an Independent Non-Executive Director of CBD Energy Limited (BlueNRGY Group Limited) from August 05, 2014 to October 23, 2014. Ms. Ingargiola graduated in 1989 from Boston University with a Bachelor Degree in Business Administration and a concentration in Finance. She holds an MHA with a concentration in Business from the University of South Florida. She holds a Master's Degree in Business Administration from the University of South Florida in 1996.

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 $210,222.21

~~NOTE~~Jeff Chartier, 12age 51, has over 30 years of experience in the financial industry and has been a director of the Company since November 1, 2014. His Wall Street career began in 1981 as a floor runner at Prudential-Bache ~~401K~~Securities ~~Salary~~on the commodities exchange. By ~~Deferral~~1996, ~~Plan~~he was Vice President at Morgan Stanley and won the Morgan Stanley Dean Witter National Sales Directors Award along with numerous other awards for sales and customer service excellence. In 2002, Mr. Chartier started his own firm, Chartier Financial, offering full service retail brokerage products to his clients. Mr. Chartier then resigned from the industry as a broker in 2009 to become President of Green EnviroTech Holdings Corp. Since resigning from Green EnviroTech Holdings Corp. in February 2011, Mr. Chartier has formed a consulting firm to assist and consult with private companies looking to enter the public marketplace. Mr. Chartier’s financial and business executive knowledge and experience qualify him to serve on the Company’s Board of Directors.

~~The Company~~Earl ~~has~~Young, ~~established~~age, ~~a deferred~~67, ~~benefit~~worked ~~plan~~ in commercial banking and finance for ~~office~~42 years. Mr. Young’s primary focus was small business and ~~managerial~~over ~~staff~~the ~~with one~~final ~~year~~15 oryears ~~more~~ of ~~service~~his career, executive management. ~~The plan~~Most ~~allows~~recently, ~~employees to~~from ~~contribute~~2007 ~~through~~to ~~salary~~2014, ~~withholding~~Mr. ~~The Company~~Young ~~may~~was ~~match~~involved in the ~~contribution~~ start-up of toFlorida 3%Traditions Bank, a community bank in Dade City, Florida. He served as Executive Vice President/Senior Lender and member of the ~~gross~~ ~~wages~~bank’s Board of Directors. During his tenure, the ~~employee.~~bank ~~Amounts~~grew ~~contributed~~to nine offices across Central Florida and $350,000,000 byin ~~the~~assets. ~~Company~~The ~~for~~bank was sold in July 2014. Mr. Young is currently a member of the ~~twelve~~Presidential ~~months~~Search ~~ended~~Committee ~~December~~for 31Pasco Hernando Community College, ~~2014~~serves as an Investment Oversight Committee member for the Pasco County School Board, and ~~2013~~is ~~are~~a Governor-appointed $0Advisory ~~and~~Board ~~$0,~~member ~~respectively~~for the Florida Small Business Development Center.

~~NOTE~~Board Leadership 13Structure –and ~~Income~~Role ~~Tax~~in ~~Provisions~~Risk Oversight

~~Management~~Our Board of ~~the~~Directors ~~Company~~is ~~considers the~~primarily ~~likelihood~~responsible for overseeing our risk management processes. The Board of ~~changes~~Directors byreceives ~~tax~~and reviews ~~authorities~~periodic inreports ~~its~~from ~~filed~~management, ~~income~~auditors, ~~tax~~legal ~~returns~~counsel, and ~~recognizes~~others, aas ~~liability~~considered ~~for~~appropriate orregarding ~~discloses~~our ~~potential~~Company’s ~~significant~~assessment ~~changes~~of ~~that~~risks. ~~management~~The ~~believes~~Board ~~are~~of ~~more~~Directors ~~likely~~focuses ~~than~~on ~~not~~the tomost ~~occur~~significant ~~upon~~risks ~~examination~~facing byour ~~tax~~Company ~~authorities.~~and ~~Management~~our Company’s general ~~has~~risk ~~not~~management ~~identified~~strategy, ~~any~~and ~~uncertain~~also ~~tax~~ensures ~~positions~~that inrisks ~~filed~~undertaken ~~income~~by ~~tax~~our ~~returns~~Company ~~that~~are ~~require~~consistent ~~recognition~~with orthe ~~disclosure~~appetite infor ~~the~~risk ~~accompanying~~of the ~~financial~~Board ~~statements~~of Directors. ~~The~~While the Board of Directors oversees our Company’s ~~income~~risk ~~tax~~management, ~~returns~~management is responsible for ~~the~~day-to-day risk ~~past~~management ~~three~~processes. ~~years~~We ~~are~~believe ~~subject~~this todivision ~~examination~~of byresponsibilities ~~tax~~is ~~authorities,~~the most effective approach for addressing the risks facing our Company and ~~may~~that ~~change~~our ~~upon~~board ~~examination~~leadership structure supports this approach.

~~F-15~~Code of Ethics

~~For~~We have ~~financial~~adopted ~~reporting~~a ~~purposes~~Code of Ethics that applies to our principal executive officer, ~~income~~principal ~~before~~financial ~~income~~officer ~~taxes~~and principal accounting ~~includes~~officer. ~~the~~The ~~following~~text ~~components:~~of our Code of Ethics is available on our website at www.cessynergies.com.

	2014			2013
United States	$	(503,011	)	$	(153,746	)
Foreign		-			-
Total	$	(503,011	)	$	(153,746	)

Nominating Committee

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	$	-

We have not adopted any procedures by which security holders may recommend nominees to our Board of Directors.

~~NOTE 14 – Reverse Acquisition~~Audit Committee

~~On November 1, 2013, CES entered into~~The anentire ~~Agreement~~Board ~~and Plan~~ of ~~Merger~~Directors ~~(the~~acts ~~“Merger~~as ~~Agreement”), with CES Acquisitions, Inc. (“Subsidiary”), and CES Synergies, Inc., a shell company that traded on~~ the ~~OTC~~Audit ~~bulletin~~Committee ~~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~~Board ~~issued 35,000,000 shares~~ of ~~the~~Directors ~~Company’s~~has ~~common~~no ~~stock~~separate ~~to the shareholders of CES (the “Acquisition Shares”), representing approximately 75~~committees.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~~Section 16(a) 15Beneficial –Ownership ~~Subsequent~~Reporting ~~Events~~Compliance

~~The~~Under Section ~~Company~~16(a) ~~has~~of ~~performed~~the anExchange ~~evaluation of~~Act, ~~subsequent~~our ~~events~~directors ~~through,~~and ~~March~~certain 3,of ~~2015~~our officers, ~~the~~and ~~date~~persons ~~the~~holding ~~accompanying~~more ~~financial~~than ~~statements~~10 ~~were~~percent ~~issued~~of ~~and~~our common ~~did~~stock ~~not~~are ~~identify~~required ~~any material~~to file forms reporting their beneficial ownership of our common stock and subsequent ~~transactions~~changes in that ownership ~~require~~with ~~disclosure~~the United States Securities and Exchange Commission.

F-Based solely upon a review of Forms 3, 4, and 5, and amendments thereto, if any, furnished to us, we believe that as of December 31, 2015, our directors, officers, and 10% beneficial owners complied on a timely basis with all Section 16(a) filing requirements with the exception of our directors, officers, and 10% beneficial owners listed in the table below:

NOTE 16 - Segment Information

Name	Number of Late Reports	Number and Description of Transactions Not Reported on a Timely Basis
Luisa Ingargiola	2	An initial statement of beneficial ownership of securities was not filed on a timely basis; 1 transaction was not reported on a timely basis following the acquisition of shares in the year ended December 31, 2015.
Earl Young	1	An initial statement of beneficial ownership of securities was not filed on a timely basis.
Jeff Chartier	1	1 transaction was not reported on a timely basis following the disposition of shares in the year ended December 31, 2015.

~~Remediation is one segment of the Company~~ITEM ~~that derives its income from mold remediation and abatement services for a broad range of environments~~11. ~~Demolition~~EXECUTIVE 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.COMPENSATION

~~The information provided below is obtained~~SUMMARY ~~from~~COMPENSATION 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:TABLE

	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	)

The following summary compensation table sets forth information concerning compensation for services rendered in all capacities during 2015 and 2014 awarded to, earned by or paid to the Company’s President and Chairman. No other officer of the Company received compensation in excess of $100,000 for the Company’s last two completed fiscal years.

	Years ended December 31,
Name and Principal Position	Year			Salary ($)			Bonus ($)		Stock Awards ($)		Option Awards ($)		Non-Equity Incentive Plan Compensation (S)		Non- Qualified Deferred Compensation Earnings ($)		All Other Compensation* ($)		Totals ($)
	2014			2013
Clyde A. Biston President, Chairman,		2015		$	318,409	(1)		-		-		-		-		-	$	-	$	318,409
Demolition Segment
Director		2014		$	350,000			-		-		-		-		-	$	-	$	350,000
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	)

(1)	From January 1, 2015 to August 15, 2015, Mr. Biston’s annual salary was set at $350,000. From August 15, 2015 to December 31, 2015, his annual salary was reduced to $250,000. No other executive received more than $100,000 in annual compensation in 2014 or 2015.

FOutstanding Equity Awards at Fiscal Year-17End

~~ITEM~~There were 9.no ~~CHANGES~~outstanding INequity ~~AND~~awards ~~DISAGREEMENTS~~to ~~WITH~~our ~~ACCOUNTANTS~~named ONexecutive ~~ACCOUNTING~~officers ~~AND~~as ~~FINANCIAL~~of ~~DISCLOSURE~~December 31, 2015.

~~None.~~Summary Director Compensation Table

~~ITEM~~The following 9Atable shows information regarding the compensation earned or paid during 2015 to Non-Employee Directors who served on the Board during the year. ~~CONTROLS~~The ~~AND~~compensation ~~PROCEDURES~~paid to Mr. Biston is shown under “Executive Compensation” and the related explanatory tables. Mr. Biston and Mr. Tostanoski did not receive any compensation for their service as members of the Board.

Evaluation of Disclosure Controls and Procedures

Name and Principal Position	Year		Fees Paid or Earned in Cash ($)*			Stock Awards ($)			Option Awards ($)		Non-equity incentive plan compensation		Non-qualified incentive plan compensation		All Other Compensation ($)		Total ($)

Luisa Ingargiola, Director		2015	$	20	⁽¹⁾	$	20	⁽¹⁾		—		—		—		—	$	40

~~Disclosure controls and procedures~~* ~~are~~dollars ~~controls and other procedures that are designed to ensure that information required to be disclosed by us~~ in the reports that we file or submit under the Exchange Act is recorded, processed, summarized and reported, within the time periods specified in the Securities and Exchange Commission's rules and forms. Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed by us in the reports that we file under the Exchange Act is accumulated and communicated to our management, including our principal executive and financial officers, as appropriate to allow timely decisions regarding required disclosure.thousands

As of the end of the period covered by this Annual Report on Form 10-K, we conducted an evaluation, under the supervision and with the participation of our Chief Executive Officer and Chief Financial Officer, of our disclosure controls and procedures (~~as defined in Rule 13a-15(e~~1) ~~and~~For ~~Rule 15d-15(e)~~services ~~of the Exchange Act). Based upon this evaluation, our Chief Executive Officer and Chief Financial Officer concluded that the Company’s disclosure controls and procedures are effective~~ as ofa ~~the~~director ~~end of the period covered by this Annual Report on Form 10-K to ensure that information required to be disclosed by the Company~~ in ~~the~~2015, ~~reports~~Ms. ~~that~~Ingargiola wereceived ~~file or submit under the Exchange Act is recorded~~$20,000 ~~processed, summarized and reported within the time periods specified~~ in ~~the~~cash ~~Securities~~compensation and Exchange Commission’s rules and forms and also are effective in ensuring that information required to be disclosed by the Company in the reports that it files or submits under the Exchange Act is accumulated and communicated to the Company’s management20, ~~including~~000 ~~the~~shares ~~Company’s~~of ~~Chief~~common ~~Executive~~stock ~~Officer~~valued ~~and~~at ~~Chief~~$0.001 ~~Financial~~per ~~Officer,~~share. asThe ~~appropriate~~stock towas ~~allow~~recorded ~~timely~~at ~~decisions regarding required disclosure~~$20.

~~Management's Report on Internal Control over Financial~~Director ~~Reporting~~Compensation

~~Management~~The Company isand ~~responsible~~Ms. ~~for~~Ingargiola ~~establishing~~ entered into an offer letter, dated March 1, 2015 and ~~maintaining~~executed ~~adequate~~by ~~internal~~Ms. ~~control~~Ingargiola ~~over~~on ~~financial~~April ~~reporting~~9, of2015, setting forth the ~~Company~~terms under which Ms. ~~Because~~Ingargiola serves as a director of ~~its~~the ~~inherent~~Company ~~limitations,~~(the ~~internal~~“Ingargiola Offer Letter”). ~~control~~Pursuant ~~over~~to ~~financial~~the ~~reporting~~Ingargiola ~~may~~Offer ~~not~~Letter, ~~prevent~~in orconsideration ~~detect~~for ~~all~~serving ~~misstatements.~~on ~~Also~~the Board, ~~projections~~the ofCompany ~~any~~agreed ~~evaluation~~to ofgrant ~~effectiveness~~Ms. Ingargiola torestricted ~~future~~stock ~~periods~~units ~~are~~in ~~subject~~the toamount ~~the~~of ~~risk~~10,000 ~~that~~shares ~~controls~~of ~~may~~common ~~become~~stock ~~inadequate~~quarterly, ~~because~~plus ofan ~~changes~~additional in$10,000 ~~conditions~~quarterly, orpayable in ~~that~~arrears. Despite the ~~degree of~~terminology ~~compliance~~used ~~with~~in the ~~policies~~Ingargiola ~~and~~Offer ~~procedures~~Letter, ~~may~~the ~~deteriorate~~compensation paid to Ms. Ingargiola in shares is paid through direct share issuances.

~~Management,~~The foregoing ~~with~~description of the ~~participation of~~Ingargiola ~~our~~Offer ~~Chief~~Letter ~~Executive~~is ~~Officer~~qualified ~~and~~in ~~Chief~~its ~~Financial~~entirety ~~Officer,~~by ~~has~~reference ~~evaluated~~to the ~~effectiveness~~provisions of ~~our internal control over financial reporting as of December 31, 2014 based on criteria established in Internal Control—Integrated Framework issued by~~ the ~~Committee~~Ingargiola ofOffer ~~Sponsoring~~Letter ~~Organizations~~filed ofas ~~the~~Exhibit ~~Treadway Commission~~10.12 ~~Based~~to on this ~~evaluation,~~Annual ~~management concluded that~~Report, aswhich ~~of December 31, 2014, our internal control over financial reporting~~ is ~~effective~~incorporated inherein ~~providing~~by ~~reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with U~~reference.~~S. generally accepted accounting principles.~~

This Annual Report on Form 10-K does not include an attestation report of the Company’s independent registered public accounting firm regarding internal control over financial reporting. Management’s report is not subject to attestation by the Company’s independent registered public accounting firm pursuant to rules of the Securities and Exchange Commission that permit the Company to provide only management’s report in this Annual Report on Form 10-K.23

Changes in Internal Controls

There have been no changes in our internal control over financial reporting identified in connection with the evaluation required by paragraph (d) of Rule 13a-15 or 15d-15 under the Exchange Act that occurred during the quarter ended December 31, 2014 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

ITEM 9B. OTHER INFORMATION

None.

PART III

ITEM 10. DIRECTORS, OFFICERS AND CORPORATE GOVERNANCE

Below are the names and certain information regarding the Company’s executive officers and directors. Directors serve until the next annual meeting of shareholders or until their successors are elected and qualified. Officers serve at the discretion of the Board of Directors.

Name Position Clyde A. Biston Chief Executive Officer, Chairman of the Board of Directors Sharon Rosenbauer Chief Financial Officer, Treasurer, Vice President, Director John Tostanoski President, Director James Everett Chief Operating Officer, Secretary, Director James Smith Vice President Jeff Chartier Director

Clyde A. Biston, age 65, is the founder and has been Chief Executive Officer of CES since 1988 and has been the Chairman of the Board of Directors and the Chief Executive Officer of the Company since September 10, 2013. Mr. Biston has over 40 years’ experience in the general construction and asbestos abatement industry. Prior to entering the abatement profession, he operated a building contractor business. In the nine years prior to the formation of CES, Mr. Biston personally supervised the removal of more than 2 million square feet of asbestos containing materials on projects in Florida and Georgia, as well as many large-scale demolition and remediation projects. Mr. Biston’s experience as founder of CES qualifies him to serve on the Company’s Board of Directors.

Sharon Rosenbauer, age 64, has been with CES since 1992 and has been a director and the Chief Financial Officer, Treasurer, and Vice President of the Company since November 1, 2013. She started at CES as its sole bookkeeper, and has been CES’s Vice President since 2009 and Treasurer since 1998. Prior to joining CES, Ms. Rosenbauer worked as an auditor for both the Hilton and Holiday Inn Corporations. Ms. Rosenbauer was also employed with Gladieu Corporation as the Price Administrator and Contract Negotiator with her primary focus in cost-accounting. Ms. Rosenbaeur’s experience at CES qualifies her to serve on the Company’s Board of Directors.

John Tostanoski, age 61, has been with CES since 2003 (as its General Manager of South Florida Operations) and has been a director and the President of the Company since November 1, 2013. Mr. Tostanoski has over forty years of contracting and consulting experience in the environmental industry, including project management, analytical testing, contamination assessment and remediation, asbestos and lead assessment and remediation, indoor air quality, expert testimony and regulatory intervention. His responsibilities have included all aspects of administrative, financial, marketing, personnel, and quality oversight. Mr. Tostanoski has also served as a principal environmental consultant to several Fortune 500 companies, developing baseline and compliance monitoring programs, establishing hazardous waste management plans, indoor air quality surveys and monitoring, large scale asbestos surveys and abatements, industrial waste permitting and pretreatment design. Mr. Tostanoski received his BS in Environmental Sciences from Florida International University. Mr. Tostanoski’s contracting and consulting experience qualify him to serve on the Company’s Board of Directors.

James Everett, age 48 has been with CES since 2003 (as a Project Manager) and has been a director and the Chief Operating Officer and Secretary of the Company since November 1, 2013. He has worked in the construction industry since 1982 and has a diverse background in infrastructure improvement and industrial construction. Over the past fifteen years, Mr. Everett has managed projects in seventeen states including many design-built projects. These projects have ranged from infrastructure improvements for NASA, USACOE, The Department of Navy, The Department of Army, The Bureau of Indian Affairs, and The Bureau of Prisons, as well as numerous state, county and municipal work. In addition to infrastructure improvement projects, Mr. Everett was the project engineer for multiple large earthmoving projects. These projects include several thousand acres of post-mining land reclamation where earthmoving quantities exceeded 10 million cubic yards. Prior to joining CES, from 2000 to 2003, Mr. Everett was the Vice President for Madrid Engineering Group, Construction Services Division. Mr. Everett received his BS in Building Construction and Engineering Management from the University of West Florida. Mr. Everett’s infrastructure improvement and industrial construction knowledge and experience qualify him to serve on the Company’s Board of Directors.

James Smith, age 56, has been with CES since 1995 (as its Head Project Manager), has been the Vice President of the Company since November 1, 2013, and has over 20 years of experience in the supervision of asbestos abatement projects throughout the United States and over 15 years of experience in commercial general construction. Mr. Smith has experience as an operations manager, supervisor, and estimator of construction, abatement, remediation, and selective demolition projects throughout the United States and abroad.

Jeff Chartier, age 51, has over 30 years of experience in the financial industry and has been a director of the Company since November 1, 2013. His Wall Street career began in 1981 as a floor runner at Prudential-Bache Securities on the commodities exchange. By 1996, he was Vice President at Morgan Stanley and won the Morgan Stanley Dean Witter National Sales Directors Award along with numerous other awards for sales and customer service excellence. In 2002, Mr. Chartier started his own firm, Chartier Financial, offering full service retail brokerage products to his clients. Mr. Chartier then resigned from the industry as a broker in 2009 to become President of Green EnviroTech Holdings Corp. Since resigning from Green EnviroTech Holdings Corp. in February 2011, Mr. Chartier has formed a consulting firm to assist and consult with private companies looking to enter the public marketplace. Mr. Chartier’s financial and business executive knowledge and experience qualify him to serve on the Company’s Board of Directors.

Board Leadership Structure and Role in Risk Oversight

We have not adopted a formal policy on whether the Chairman and Chief Executive Officer positions should be separate or combined. These roles are currently combined, with Mr. Biston serving as Chief Executive Officer and Chairman.

Our Board of Directors is primarily responsible for overseeing our risk management processes. The Board of Directors receives and reviews periodic reports from management, auditors, legal counsel, and others, as considered appropriate regarding our Company’s assessment of risks. The Board of Directors focuses on the most significant risks facing our Company and our Company’s general risk management strategy, and also ensures that risks undertaken by our Company are consistent with the appetite for risk of the Board of Directors. While the Board of Directors oversees our Company’s risk management, management is responsible for day-to-day risk management processes. We believe this division of responsibilities is the most effective approach for addressing the risks facing our Company and that our board leadership structure supports this approach.

Code of Ethics

We have adopted a Code of Ethics that applies to our principal executive officer, principal financial officer and principal accounting officer. The text of our Code of Ethics is available on our website at www.cessynergies.com.

Nominating Committee

We have not adopted any procedures by which security holders may recommend nominees to our Board of Directors.

Audit Committee

The entire Board of Directors acts as the Audit Committee and the Board of Directors has no separate committees. The Company has no qualified “audit committee financial expert” at this time because it has not been able to identify a qualified candidate to serve on its Board of Directors. Further, the Company believes that it has inadequate financial resources at this time to retain an “audit committee financial expert.”

Section 16(a) Beneficial Ownership Reporting Compliance

Based solely upon a review of Forms 3, 4, and 5 filed for the fiscal year ended December 31, 2014, we believe that all of our directors, officers, and 10% beneficial owners complied with all Section 16(a) filing requirements applicable to them and that all such forms were timely filed, except for one Form 4 that was not timely filed by one of our directors, Jeffrey Chartier, to report one transaction. Rather than filing a Form 4, Mr. Chartier filed a Form 5 to report the transaction in December of 2014.

ITEM 11. EXECUTIVE COMPENSATION

SUMMARY COMPENSATION TABLE

The following summary compensation table sets forth information concerning compensation for services rendered in all capacities during 2014 and 2013 awarded to, earned by or paid to the Company’s Chief Executive Officer. No other officer of the Company received compensation in excess of $100,000 for the Company’s last two completed fiscal years.

Name and							Stock		Option		Non-Equity Incentive Plan		Non- Qualified Deferred Compensation		All Other
Principal			Salary		Bonus		Awards		Awards		Compensation		Earnings		Compensation*		Totals
Position	Year		($)		($)		($)		($)		(S)		($)		($)		($)
Clyde A. Biston*		2014	$	350,000		-		-		-		-		-	$		$	350,000
Chief Executive Officer, Chairman		2013	$	136,227		-		-		-		-		-	$	929,663	$	1,065,890

No other executive received more than $100,000 in annual compensation in 2013 or 2014.

* Prior to November 1, 2013, CES was operated as a subchapter S Corporation. Clyde A. Biston was the sole shareholder, and was compensated mostly in the form of distributions made from the Company’s net profit, and for which Mr. Biston personally paid income taxes. Effective November 1, 2013, Mr. Biston’s annual salary was changed to $350,000. As a C Corporation, the Company will no longer make distributions to Mr. Biston as previously done under the under the S Corporation structure.

Outstanding Equity Awards at Fiscal Year-End

There were no outstanding equity awards to our named executive officers as of December 31, 2014.

Director Compensation

Mr. Biston did not receive any additional compensation for his service as the Chairman of the Company’s Board of Directors. Messrs. Tostanoski and Everett and Ms. Rosenbauer are executive officers, other than named executive officers, who do not receive additional compensation for their services as directors. No non-employee director of the Company received any compensation for services as director for the year ended December 31, 2014.

ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS

The following table sets forth certain information, as of March 1730, ~~2015~~2016 with respect to the beneficial ownership of the Company’s outstanding common stock by (i) any holder of more than five (5%) percent; (ii) each of the Company’s named executive officers and directors; and (iii) the Company’s directors and executive officers as a group.

Beneficial ownership is determined in accordance with the rules of the Securities and Exchange Commission. Unless otherwise indicated in the table, the persons and entities named in the table have sole voting and sole investment power with respect to the shares set forth opposite the shareholder’s name. Unless otherwise noted, the address of each principal shareholder is c/o CES Synergies, Inc., 39646 Fig Street, P.O. Box 1299, Crystal Springs, FL 33524.

Named executive officers and directors:	Number of Shares beneficially owned		Percentage of class beneficially owned*
Name:	Number of Shares beneficially owned		Percentage of class beneficially owned*
Clyde A. Biston		31,~~850~~350,000		6866.29	%
John Tostanoski		1,925,000		4.1	%
James Everett		1,925,000		4.1	%
Sharon Rosenbauer		1,925,000		4.1	%
James Smith		1,925,000		4.1	%
Jeff Chartier (1)		2,275,000		4.9	%
Luisa Ingargiola		30,000		0.1	%
All directors and executive officers as a group (6 persons)		41,825,000		89.5	%
Jeff Chartier		-		-	%
Earl Young		-		-	%
All Executive Officers and Directors as a Group (seven total)		37,155,000		79.3	%
5% Shareholder:
Stephanie Lee (1)		2,472,000		5.3	%

~~_____________________~~* The percentage of class beneficially owned is based on 46,890,500 shares of common stock issued and outstanding as of March 30, 2016.

* The percentage(1) Ms. Lee is the sole owner of ~~class~~Strategic ~~beneficially~~Capital ~~owned~~Markets and Type A Partners and as such is ~~based~~the onbeneficial ~~46,730,500~~owner of the shares of Company common stock ~~issued~~held ~~and~~by ~~outstanding~~such asentities. The number of ~~March~~shares 17beneficially owned by Ms. Lee includes 1,825,000 ~~2015~~shares owned through Strategic Capital Markets, 530,000 shares owned through Type A Partners and 117,000 owned by Ms. Lee directly.

~~(1) Represents~~ITEM ~~shares~~13. ~~held~~CERTAIN byRELATIONSHIPS ~~Strategic~~AND ~~Capital~~RELATED ~~Markets.~~TRANSACTIONS, AND DIRECTOR INDEPENDENCE

~~ITEM~~Certain Relationships ~~13.~~and ~~CERTAIN~~Related ~~RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE~~Transactions

~~Certain~~Prior ~~Relationships~~to October 31, 2015, we operated out of two separate facilities owned by Clyde A. Biston, our President and ~~Related~~Chairman of the Board. The Crystal Springs facility ~~Transactions~~consists of office space, a mechanic shop and a warehouse space. The other facility was located in Zephyrhills, Florida. Between June and October 2013, the Company was allowed to use these two facilities rent-free. As of November 1, 2013, the Company entered into lease agreements with Mr. Biston for rental of the facilities for an aggregate annual rent of $235,320 ($180,000 per year with respect to the Crystal Springs facilities prior to June 1, 2015 and $90,000 thereafter, and $55,320 per year with respect to the Zephyrhills facilities), all of which is paid to Mr. Biston directly. The lease agreement for the Zephyrhills facility was terminated at the end of April 2015. The lease for the Crystal Springs facility was renewed for an additional 48 month term. The Company also pays the property taxes for use of the facilities.

WeIn April ~~operate~~2014, ~~out~~our wholly-owned subsidiary, CES, issued an adjustable rate note in the principal amount of ~~two~~$2,800,000 ~~facilities~~(the ~~owned~~“Note”) byto ~~Clyde A~~Mr. Biston,. ~~our~~The ~~Chief~~Note ~~Executive~~bears ~~Officer.~~interest ~~Between~~at ~~June~~an ~~and~~initial ~~October~~rate ~~2013,~~of ~~the~~6.15% ~~Company~~per ~~was~~year, ~~allowed~~subject to ~~use~~adjustment ~~the~~on ~~facilities rent-free.~~May As25, of2019 ~~November~~and 1,every ~~2013,~~60 days ~~the~~thereafter ~~Company~~to ~~entered~~a ~~into~~rate ~~two~~equal ~~lease~~to ~~agreements~~4.5% ~~with~~plus Mrthe five-year Swap Rate. ~~Biston~~Interest ~~for~~and ~~rental~~principal ofon the ~~facilities for~~Note anis ~~aggregate~~due ~~annual~~in ~~rent~~180 monthly installments of $~~235~~23,~~320 ($180~~994,~~000~~ ~~per~~which ~~year~~commenced ~~with~~on ~~respect~~May to25, ~~the~~2015, ~~Crystal~~with ~~Springs~~the ~~facilities~~final ~~and~~payment ~~$55,320~~due ~~per~~on ~~year with~~or ~~respect~~before toApril ~~the~~25, ~~Zephyrhills~~2029. ~~facilities),~~The ~~all~~parties agreed ofon ~~which~~December is30, ~~paid~~2015 to ~~Mr.~~defer ~~Biston~~loan ~~directly.~~payments ~~The~~until ~~lease~~January ~~agreements~~1, ~~expire~~2017. onAt ~~November 1~~December 31, 2015, ~~but~~$2,656,803 ~~automatically~~was ~~renew~~outstanding ~~for~~under the ~~additional~~Note. 48During ~~month~~the ~~terms.~~year ~~The~~ended ~~Company~~December ~~also~~31, ~~pays~~2015, ~~the~~we ~~property~~paid ~~taxes~~$64,647 ~~for~~in ~~use~~principal ofand ~~the~~79,318 ~~facilities~~in interest under this Note.

In September, ~~April~~ 2014, ~~our~~we ~~wholly-owned~~entered ~~subsidiary, CES,~~into ~~issued~~a anpromissory ~~adjustable~~note ~~rate~~with ~~note~~Mr. Biston pursuant to which Mr. Biston provided us with a loan in the aggregate ~~principal~~amount of $250,000. In May 2015 an additional amount of $225,~~800,~~000 ~~(the~~was ~~“Note”)~~loaned to ~~Mr.~~us ~~Biston.~~and ~~The~~added ~~Note~~to ~~bears~~this note. Interest on ~~interest~~the atloan anaccrues ~~initial~~at a rate of 64.1525% per ~~year~~annum, ~~subject~~and towe ~~adjustment~~are onobligated ~~May~~to ~~25,~~make ~~2019~~monthly principal and ~~every~~interest 60payments ~~days~~to ~~thereafter~~Mr. toBiston in athe ~~rate~~amount ~~equal to~~of $4,632.5% ~~plus~~The ~~the~~parties ~~five-year~~agreed ~~Swap~~on ~~Rate.~~December ~~Interest~~30, ~~and~~2015 ~~principal~~to ondefer ~~the~~loan ~~Note~~payments isuntil ~~due~~January in1, ~~180~~2017. ~~monthly~~At ~~installments~~December of31, 2014, $23273,~~994,~~273 ~~which commenced~~was onoutstanding ~~May~~under ~~25,~~the ~~2014~~loan, ~~with~~and ~~the~~at ~~final~~December ~~payment~~31, ~~due~~2015, on$254,203 orwas ~~before~~outstanding ~~April~~under ~~25,~~the ~~2029~~loan. AtDuring the year ended December 31, 2014, we paid $294,~~721~~857 in principal and $178,~~450~~416 ~~was~~in ~~outstanding~~ interest under ~~the~~this ~~Note~~loan. During the year ended December 31, ~~2014~~2015, we paid $787,~~550~~504 in principal and $~~113~~1,~~402~~761 in interest under this ~~Note~~loan.

27In July, 2015, we entered into a promissory note with Mr. Biston pursuant to which Mr. Biston provided us with a loan in the aggregate amount of $160,000. Interest on the loan accrues at a rate of 4.75% per annum, and we are obligated to make quarterly principal and interest payments to Mr. Biston in the amount of $1,908. At December 31, 2014, $0 was outstanding under the loan, and at December 31, 2015, $158,092 was outstanding under the loan. During the year ended December 31, 2015, we paid $1,908 in principal and $0 in interest under this loan.

In September, 2014, we entered into an additional promissory note with Mr. Biston pursuant to which Mr. Biston provided us with a loan in the aggregate amount of $250,000. Interest on the loan accrues at a rate of 4.25% per annum, and we are obligated to make monthly principal and interest payments to Mr. Biston in the amount of $4,632 per month. At December 31, 2013, $118,130 was outstanding under the loan, and at December 31, 2014, $273,273 was outstanding under the loan. During the year ended December 31, 2013, we paid $124,882 in principal and $19,200 in interest under this loan. During the year ended December 31, 2014, we paid $94,857 in principal and $178,416 in interest under this loan.24

~~Director~~In August, ~~Independence~~2015, we entered into a promissory note with Mr. Biston pursuant to which Mr. Biston provided us with a loan in the aggregate amount of $175,000. Interest on the loan accrues at a rate of 4.75% per annum, and we are obligated to make quarterly principal and interest payments to Mr. Biston in the amount of $9,881. At December 31, 2014, $0 was outstanding under the loan, and at December 31, 2015, $175,000 was outstanding under the loan. During the year ended December 31, 2015, we paid $0 in principal and $1,907 in interest under this loan.

~~None~~In November, 2015, we entered into a promissory note with Mr. Biston pursuant to which Mr. Biston provided us with a loan in the aggregate amount of ~~our~~$175,000. ~~directors~~Interest ison ~~“independent”~~the loan accrues at a rate of 4.75% per annum, and we are obligated to make quarterly asprincipal ~~that~~and ~~term~~interest ispayments ~~defined~~to Mr. Biston in the amount of $9,922. At December 31, 2014, $0 was outstanding under the ~~NASDAQ~~loan, and ~~Marketplace~~at ~~Rules~~December 31, 2015, $175,000 was outstanding under the loan. During the year ended December 31, 2015, we paid $0 in principal and $0 in interest under this loan.

~~ITEM~~On December 1430, 2015, CES and Mr. ~~PRINCIPAL~~Biston ~~ACCOUNTANT~~agreed ~~FEES~~that ~~AND~~Mr. ~~SERVICES~~Biston would defer principal and interest payments due under notes held by Mr. Biston, as described above. On March 1, 2016, Mr. Biston and CES, signed a Loan Deferral Agreement to confirm this understanding. Under this agreement, Mr. Biston agreed to defer, through December 31, 2016, principal and interest payments due under the notes. Mr. Biston, however, did not forgive the repayment of any of the principal or interest payments due under the notes and the principal amounts were not reduced in any manner.

~~The following is a summary of fees for professional~~Director ~~services rendered by John Scrudato CPA (“Scrudato”), our registered independent public accounting firm, for the year ended December 31, 2014:~~Independence

	Fiscal Year Ended
Description of services	December 31, 2014		December 31, 2013
Audit fees	$	28,068	$	28,800
Audit – related fees		-		-
Tax fees		-		-
All other fees		-		-

Two of our Directors, Ms. Ingargiola and Mr. Young, are “independent” as that term is defined under the NASDAQ Marketplace Rules.

~~Audit fees. Audit~~ITEM ~~fees~~14. ~~represent~~PRINCIPAL ~~fees~~ACCOUNTANT ~~for~~FEES ~~professional~~AND services performed by Scrudato for the audit of our annual financial statements and the review of our quarterly financial statements, as well as services that are normally provided in connection with statutory and regulatory filings or engagements.SERVICES

~~Audit-related~~The ~~fees. Audit-related~~following ~~fees~~is ~~represent~~a summary of fees for ~~assurance~~professional ~~and related~~ services ~~performed~~rendered by John Scrudato ~~that are~~CPA ~~reasonably~~(“Scrudato”), ~~related to the performance of the audit or review of~~ our ~~financial~~registered independent ~~statements.~~public ~~Scrudato~~accounting ~~did~~firm, ~~not~~for ~~perform~~the ~~any~~year ~~audit-related services~~ended inDecember ~~2014~~31, ~~or 2013.~~ 2015:

Tax Fees. Scrudato did not perform any tax compliance services in 2014 or 2013.

	Fiscal Year Ended
Description of services	December 31, 2015		December 31, 2014

Audit fees	$	22,738	$	28,068
Audit - related fees		-		-
Tax fees		-		-
All other fees		-		-

~~All~~Audit fees. Audit ~~other~~fees represent fees for professional services performed by Scrudato & Co. ~~Scruadato~~, PA for the ~~did~~audit ~~not~~of ~~receive~~our ~~any~~annual ~~other fees~~financial ~~for~~statements ~~2014~~and the review of our quarterly financial statements, as well as services that are normally provided in connection with statutory and regulatory filings or ~~2013~~engagements.

~~The~~Audit-related fees. ~~aggregate~~Audit-related fees ~~billed~~represent tofees ~~the Company~~ for ~~the~~assurance ~~Company’s~~and ~~fiscal~~related ~~years~~services ~~ended~~performed ~~December 31, 2014 and 2013,~~ by ~~Ronald~~Scrudato R& Co. ~~Chadwick~~, ~~P.C.~~PA ~~(“Chadwick”),~~that ~~the Company’s~~are ~~former~~reasonably ~~registered~~related ~~independent~~to ~~public~~the ~~accounting~~performance ~~firm,~~of ~~which was dismissed by~~ the ~~Company~~audit inor ~~favor~~review of ~~Scrudato effective~~our ~~November~~financial ~~1, 2013, were as follows:~~statements.

	Fiscal Year Ended
	December 31, 2014		December 31, 2013
Audit fees	$	-	$	4,750
Audit – related fees		-		-
Tax fees		-		500
All other fees		-		-

Tax Fees. Scrudato & Co., PA did not perform any tax compliance services in 2015 or 2014.

28All other fees. Scrudato & Co., PA did not receive any other fees for 2015 or 2014.

~~ITEM 15. EXHIBITS~~25

Exhibit Number		Description
2.1		Agreement and Plan of Merger, dated November 1, 2013, among the Company, CES Acquisitions, Inc. and Cross Environmental Services, Inc. (filed as exhibit to 8-K filed on November 4, 2013 and incorporated herein by reference)
3.1		Articles of Incorporation (filed as exhibit to S-1 filed on August 31, 2012 and incorporated herein by reference)
3.2		Articles of Merger (filed as exhibit to 8-K filed on November 4, 2013 and incorporated herein by reference)
3.3		By-laws (filed as exhibit to S-1 filed on August 31, 2012 and incorporated herein by reference)
3.4		Amendment to By-laws (filed as exhibit to 8-K filed on September 16, 2013 and incorporated herein by reference)
3.5		Certificate of Amendment to Articles of Incorporation (filed as exhibit to 8-K filed on March 13, 2014 and incorporated herein by reference)
3.6		Certificate of Correction (filed as exhibit to 8-K filed on March 13, 2014 and incorporated herein by reference)
10.1		Promissory Note, dated December 27, 2012, by CES in favor of Florida Traditions Bank (filed as exhibit to 8-K filed on November 4, 2013 and incorporated herein by reference)
10.2*		Executive Employment Agreement, dated March 7, 2014, between the Company and James Everett (filed as exhibit to 10-K filed on March 28, 2014 and incorporated herein by reference)
10.3*		Executive Employment Agreement, dated March 7, 2014, between the Company and Sharon Rosenbauer (filed as exhibit to 8-K filed on November 4, 2013 and incorporated herein by reference)
10.4*		Executive Employment Agreement, dated March 7, 2014, between the Company and James Smith (filed as exhibit to 8-K filed on November 4, 2013 and incorporated herein by reference)
10.5*		Executive Employment Agreement, dated March 7, 2014, between the Company and John Tostanoski (filed as exhibit to 8-K filed on November 4, 2013 and incorporated herein by reference)
10.6		Adjustable Rate Note, dated April 25, 2014, by CES in favor of Clyde A. Biston (filed as exhibit to 8-K filed on April 29, 2014 and incorporated herein by reference)
10.7		Promissory Note, dated April 30, 2014, by CES in favor of Florida Traditions Bank, in the aggregate principal amount of $1,750,000.
21		Subsidiaries of the Company: Cross Environmental Services, Inc., Cross Demolition, Inc., Cross Insulation, Inc., Cross Remediation, Inc., Cross FRP, Inc., Triple J Trucking, Inc., and Tenpoint Trucking, Inc. (Florida corporations) (filed as exhibit to Form 10-K filed on March 28, 2014 and incorporated herein by reference).
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.
EX-101.INS		XBRL INSTANCE DOCUMENT
EX-101.SCH		XBRL TAXONOMY EXTENSION SCHEMA DOCUMENT
EX-101.CAL		XBRL TAXONOMY EXTENSION CALCULATION LINKBASE
EX-101.DEF		XBRL TAXONOMY EXTENSION DEFINITION LINKBASE
EX-101.LAB		XBRL TAXONOMY EXTENSION LABELS LINKBASE
EX-101.PRE		XBRL TAXONOMY EXTENSION PRESENTATION LINKBASE

ITEM 15. EXHIBITS

* Indicates management contract or compensatory plan or arrangement.

Exhibit Number		Description
2.1		Agreement and Plan of Merger, dated November 1, 2013, among the Company, CES Acquisitions, Inc. and Cross Environmental Services, Inc. (filed as exhibit to 8-K filed on November 4, 2013 and incorporated herein by reference)
3.1		Articles of Incorporation (filed as exhibit to S-1 filed on August 31, 2012 and incorporated herein by reference)
3.2		Articles of Merger (filed as exhibit to 8-K filed on November 4, 2013 and incorporated herein by reference)
3.3		By-laws (filed as exhibit to S-1 filed on August 31, 2012 and incorporated herein by reference)
3.4		Amendment to By-laws (filed as exhibit to 8-K filed on September 16, 2013 and incorporated herein by reference)
3.5		Certificate of Amendment to Articles of Incorporation (filed as exhibit to 8-K filed on March 13, 2014 and incorporated herein by reference)
3.6		Certificate of Correction (filed as exhibit to 8-K filed on March 13, 2014 and incorporated herein by reference)
10.1		Promissory Note, dated December 27, 2012, by CES in favor of Florida Traditions Bank (filed as exhibit to 8-K filed on November 4, 2013 and incorporated herein by reference)
10.2		Executive Employment Agreement, dated March 7, 2014, between the Company and James Everett (filed as exhibit to 10-K filed on March 28, 2014 and incorporated herein by reference)
10.3		Executive Employment Agreement, dated March 7, 2014, between the Company and Sharon Rosenbauer (filed as exhibit to 8-K filed on November 4, 2013 and incorporated herein by reference)
10.4		Executive Employment Agreement, dated March 7, 2014, between the Company and James Smith (filed as exhibit to 8-K filed on November 4, 2013 and incorporated herein by reference)
10.5		Executive Employment Agreement, dated March 7, 2014, between the Company and John Tostanoski (filed as exhibit to 8-K filed on November 4, 2013 and incorporated herein by reference)
10.6		Adjustable Rate Note, dated April 25, 2014, by CES in favor of Clyde A. Biston (filed as exhibit to 8-K filed on April 29, 2014 and incorporated herein by reference)
10.7		Promissory Note, dated April 30, 2014, by CES in favor of Florida Traditions Bank, in the aggregate principal amount of $1,750,000.
10.8		Promissory Note, dated July 10, 2015, by CES in favor of Clyde A. Biston (filed as exhibit to 8-K filed on July 14, 2015 and incorporated herein by reference)
10.9		Promissory Note, dated August 28,2015, by CES in favor of Clyde A. Biston (filed as exhibit to 8-K filed on August 31, 2015 and incorporated herein by reference)
10.10		Promissory Note, dated November 2, 2015, by CES in favor of Clyde A. Biston (filed as exhibit to 10-Q filed on November 13, 2015 and incorporated herein by reference)
10.11		Loan Deferral Agreement, dated March 1, 2016, by and between CES and Clyde A. Biston (filed as exhibit to 8-K filed on March 4, 2016)
10.12		Offer Letter between the Company and Luisa Ingargiola, dated March 1, 2015 and executed by Ms. Ingargiola on April 9, 2015
21		Subsidiaries of the Company: Cross Environmental Services, Inc., Cross Demolition, Inc., Cross Insulation, Inc., Cross Remediation, Inc., Cross FRP, Inc., Triple J Trucking, Inc., and Tenpoint Trucking, Inc. (Florida corporations) (filed as exhibit to Form 10-K filed on March 28, 2014 and incorporated herein by reference).
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.

EX-101.INS		XBRL INSTANCE DOCUMENT
EX-101.SCH		XBRL TAXONOMY EXTENSION SCHEMA DOCUMENT
EX-101.CAL		XBRL TAXONOMY EXTENSION CALCULATION LINKBASE
EX-101.DEF		XBRL TAXONOMY EXTENSION DEFINITION LINKBASE
EX-101.LAB		XBRL TAXONOMY EXTENSION LABELS LINKBASE
EX-101.PRE		XBRL TAXONOMY EXTENSION PRESENTATION LINKBASE

29* Indicates management contract or compensatory plan or arrangement.

~~SIGNATURES~~26

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. SIGNATURES

	CES SYNERGIES, INC.
Dated: March 25, 2015	By:	/s/ Clyde A. Biston
		Name: Clyde A. Biston
		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.

	CES SYNERGIES, INC.

Dated: March 30, 2016	By:	/s/ John Tostanoski
	Name:	John Tostanoski
	Title:	Chief Executive Officer (principal executive officer)

SIGNATURE	TITLE	DATE
/s/ Clyde A. Biston	Chief Executive Officer, Chairman	March 25, 2015
Clyde A. Biston	(principal executive officer)
/s/ Sharon Rosenbauer	Chief Financial Officer, Director	March 25, 2015
Sharon Rosenbauer	(principal financial and accounting officer)
/s/ John Tostanoski	President, Director	March 25, 2015
John Tostanoski
/s/ James Everett	Chief Operating Officer, Director	March 25, 2015
James Everett
/s/ Jeff Chartier	Director	March 25, 2015
Jeff Chartier

SIGNATURE	TITLE	DATE

/s/ Clyde A. Biston	President, Chairman	March 30, 2016
Clyde A. Biston

/s/ Sharon Rosenbauer	Chief Financial Officer	March 30, 2016
Sharon Rosenbauer	(principal financial and accounting officer)

/s/ John Tostanoski	Chief Executive Officer, Director	March 30, 2016
John Tostanoski	(principal executive officer)

/s/ Luisa Ingargiola	Director	March 30, 2016
Luisa Ingargiola

/s/ Jeff Chartier	Director	March 30, 2016
Jeff Chartier

/s/ Earl Young	Director	March 30, 2016
Earl Young

Filing Compare · CES Synergies, Inc.