Energy Services of America (ESOA) 10-K 20 Dec 19 2019 FY Annual report Financial data

Document and Entity Information

Document and Entity Information - USD ($)	12 Months Ended
	Sep. 30, 2019	Dec. 01, 2019	Mar. 31, 2019
Document and Entity Information [Abstract]
Document Type	10-K
Document Period End Date	Sep. 30, 2019
Entity Registrant Name	Energy Services of America CORP
Entity Central Index Key	0001357971
Trading Symbol	esoa
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Current Fiscal Year End Date	--09-30
Entity Filer Category	Non-accelerated Filer
Entity Well-known Seasoned Issuer	No
Entity Interactive Data Current	Yes
Amendment Flag	false
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	FY
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Public Float			$ 9,267,020
Entity Common Stock, Shares Outstanding		13,899,492

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($)	Sep. 30, 2019	Sep. 30, 2018
Current assets
Cash and cash equivalents	$ 4,578,275	$ 1,065,550
Accounts receivable-trade	21,678,622	22,227,555
Allowance for doubtful accounts	(70,310)	(83,885)
Retainages receivable	3,521,561	4,919,351
Other receivables	10,008	266,179
Contract assets	6,659,707	5,353,375
Prepaid expenses and other	2,734,974	4,117,276
Total current assets	39,112,837	37,865,401
Property, plant and equipment, at cost	51,268,358	48,278,427
less accumulated depreciation	(34,453,157)	(31,462,438)
Total fixed assets	16,815,201	16,815,989
Total assets	55,928,038	54,681,390
Current liabilities
Current maturities of long-term debt	4,403,573	3,221,268
Lines of credit and short term borrowings	4,025,710	6,069,247
Accounts payable	2,919,618	6,204,870
Accrued expenses and other current liabilities	3,509,373	4,301,515
Contract liabilities	3,455,288	3,261,201
Income tax payable		545,237
Total current liabilities	18,313,562	23,603,338
Long-term debt, less current maturities	11,024,296	6,468,630
Deferred income taxes payable	1,925,823	1,328,375
Total liabilities	31,263,681	31,400,343
Shareholders' equity
Preferred stock, $.0001 par value Authorized 1,000,000 shares, 206 issued at September 30, 2019 and 2018
Common stock, $.0001 par value Authorized 50,000,000 shares 14,839,836 issued and 13,924,789 outstanding at September 30, 2019 and 14,839,836 issued and 14,194,517 outstanding at September 30, 2018	1,484	1,484
Treasury stock, 915,047 shares at September 30, 2019 and 645,319 at September 30, 2018	(91)	(65)
Additional paid in capital	60,938,896	61,239,470
Retained earnings (deficit)	(36,275,932)	(37,959,842)
Total shareholders' equity	24,664,357	23,281,047
Total liabilities and shareholders' equity	$ 55,928,038	$ 54,681,390

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parentheticals) - $ / shares	Sep. 30, 2019	Sep. 30, 2018
CONSOLIDATED BALANCE SHEETS
Preferred stock, par value (in dollars per share)	$ 0.0001	$ 0.0001
Preferred stock, shares authorized	1,000,000	1,000,000
Preferred stock, shares issued	206	206
Common stock, par value (in dollars per share)	$ 0.0001	$ 0.0001
Common stock, shares authorized	50,000,000	50,000,000
Common stock, shares issued	14,839,836	14,839,836
Common stock, shares outstanding	13,924,789	14,194,517
Treasury stock, shares	915,047	645,319

CONSOLIDATED STATEMENTS OF INCO

CONSOLIDATED STATEMENTS OF INCOME - USD ($)	12 Months Ended
	Sep. 30, 2019	Sep. 30, 2018
CONSOLIDATED STATEMENTS OF INCOME
Revenue	$ 174,541,155	$ 135,482,771
Cost of revenues	161,861,357	123,833,517
Gross profit	12,679,798	11,649,254
Selling and administrative expenses	8,857,386	7,728,182
Income from operations	3,822,412	3,921,072
Other income (expense)
Interest income	58,023	132,342
Other nonoperating expense	(112,814)	(174,576)
Interest expense	(1,064,222)	(916,675)
Gain on sale of equipment	258,082	456,894
Other income (expense), Total	(860,931)	(502,015)
Income before income taxes	2,961,481	3,419,057
Income tax expense	968,571	910,034
Net income	1,992,910	2,509,023
Dividends on preferred stock	309,000	309,000
Net income available to common shareholders	$ 1,683,910	$ 2,200,023
Weighted average shares outstanding-basic (in shares)	14,064,871	14,234,571
Weighted average shares-diluted (in shares)	17,498,204	17,667,904
Earnings per share available to common shareholders (in dollars per share)	$ 0.120	$ 0.155
Earnings per share-diluted available to common shareholders (in dollars per share)	$ 0.096	$ 0.125

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)	12 Months Ended
	Sep. 30, 2019	Sep. 30, 2018
Cash flows from operating activities:
Net income	$ 1,992,910	$ 2,509,023
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation expense	4,157,849	4,209,056
Gain on sale of equipment	(258,082)	(456,894)
Provision for deferred taxes	597,448	(139,467)
Decrease in contracts receivable	535,358	888,402
Decrease (increase) in retainage receivable	1,397,790	(1,145,459)
Decrease (increase) in other receivables	256,171	(32,656)
Increase in contract assets	(1,306,332)	(2,491)
Decrease in prepaid expenses	1,382,302	948,740
Increase (decrease) in accounts payable	(3,285,252)	682,727
Decrease in accrued expenses	(792,142)	(29,767)
Increase in contract liabilities	194,087	1,087,236
Decrease in income taxes payable	(545,237)	545,237
Net cash provided by operating activities	4,326,870	9,063,687
Cash flows from investing activities:
Investment in property and equipment	(3,364,985)	(1,883,126)
Proceeds from sales of property and equipment	629,228	544,595
Net cash used in investing activities	(2,735,757)	(1,338,531)
Cash flows from financing activities:
Preferred dividends paid	(309,000)	(309,000)
Treasury stock purchased by company	(300,600)	(49,795)
Borrowings on lines of credit and short term debt, net of (repayments)	7,956,463	(3,363,721)
Principal payments on long term debt	(5,425,251)	(4,612,615)
Net cash provided by (used in) financing activities	1,921,612	(8,335,131)
Increase (decrease) in cash and cash equivalents	3,512,725	(609,975)
Cash and cash equivalents beginning of period	1,065,550	1,675,525
Cash and cash equivalents end of period	4,578,275	1,065,550
Supplemental schedule of noncash investing and financing activities:
Purchases of property & equipment under financing agreements	1,163,222	37,112
Insurance premiums financed	3,159,083	3,130,859
Accrued dividends on preferred stock	77,250	77,250
Line of credit refinance to long-term debt	10,000,000
Cash paid during the year for:
Interest	1,064,222	916,675
Income taxes	$ 798,430	$ 346,065

CONSOLIDATED STATEMENTS OF CHAN

CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY - USD ($)	Common Stock	Additional Paid in Capital	Retained Earnings (deficit)	Treasury Stock	Total
Balance at Sep. 30, 2017	$ 1,484	$ 61,289,260	$ (40,159,865)	$ (60)	$ 21,130,819
Balance (in shares) at Sep. 30, 2017	14,239,836
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income			2,509,023		2,509,023
Accrued preferred dividends			(309,000)		(309,000)
Treasury stock purchased by company		(49,790)		(5)	(49,795)
Treasury stock purchased by company (in shares)	(45,319)
Balance at Sep. 30, 2018	$ 1,484	61,239,470	(37,959,842)	(65)	23,281,047
Balance (in shares) at Sep. 30, 2018	14,194,517
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income			1,992,910		1,992,910
Accrued preferred dividends			(309,000)		(309,000)
Treasury stock purchased by company		(300,574)		(26)	(300,600)
Treasury stock purchased by company (in shares)	(269,728)
Balance at Sep. 30, 2019	$ 1,484	$ 60,938,896	$ (36,275,932)	$ (91)	$ 24,664,357
Balance (in shares) at Sep. 30, 2019	13,924,789

BUSINESS AND ORGANIZATION

BUSINESS AND ORGANIZATION	12 Months Ended
	Sep. 30, 2019
BUSINESS AND ORGANIZATION
BUSINESS AND ORGANIZATION	1. Energy Services of America Corporation (“Energy Services” or the “Company”) was formed in 2006 as a special purpose acquisition corporation, or blank check company, and became an operating entity on August 15, 2008. C.J. Hughes Construction Company, Inc. (“C.J. Hughes”), a wholly owned subsidiary of the Company, is a general contractor primarily engaged in pipeline construction for utility companies. C.J. Hughes operates primarily in the mid-Atlantic region of the United States. Contractors Rental Corporation (“Contractors Rental”), a wholly owned subsidiary of C.J. Hughes, provides union building trade employees for projects managed by C.J. Hughes. Nitro Construction Services, Inc. (“Nitro”), a wholly owned subsidiary of C. J. Hughes, is an electrical and mechanical contractor that provides its services to the power, chemical and automotive industries. Nitro operates primarily in the mid-Atlantic region of the United States. Pinnacle Technical Solutions, Inc. (“Pinnacle”), a wholly owned subsidiary of Nitro, operates as a data storage facility within Nitro’s office building. Pinnacle is supported by Nitro and has no employees of its own. All of the C.J. Hughes, Nitro, and Contractors Rental production personnel are union members of various related construction trade unions and are subject to collective bargaining agreements that expire at varying time intervals. S.T. Pipeline, Inc., is a wholly owned subsidiary of the Company whose operations was liquidated on May 14, 2013. It was previously presented as a discontinued operation through September 30, 2018, but now is no longer presented separately in Energy Services’ 2019 financial statement presentation. The Company’s stock is quoted under the symbol “ESOA” on the OTC QB marketplace operated by the OTC Markets Group.

SUMMARY OF SIGNIFICANT ACCOUNTI

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	12 Months Ended
	Sep. 30, 2019
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	2. Revenue Recognition On October 1, 2018, the Company adopted an Accounting Standard Update, Revenue from Contracts with Customers (Topic 606) . The core principle of Topic 606 is that revenue will be recognized when promised goods or services are transferred to customers in an amount that reflects consideration for which entitlement is expected in exchange for those goods or services. We adopted Topic 606 using a modified retrospective transition approach and elected to apply Topic 606 to contracts with customers that are not substantially complete, i.e. less than 90% complete, as of October 1, 2018. The Company recognizes revenue as performance obligations are satisfied and control of the promised good and service is transferred to the customer. For Lump Sum and Unit Price contracts, revenue is ordinarily recognized over time as control is transferred to the customers by measuring the progress toward complete satisfaction of the performance obligation(s) using an input (i.e., “cost to cost”) method. For Cost Plus and Time and Material (“T&M”) contracts, revenue is ordinarily recognized over time as control is transferred to the customers by measuring the progress toward satisfaction of the performance obligation(s) using an output method. The Company does have certain service and maintenance contracts in which each customer purchase order is considered its own performance obligation recognized over time and would be recognized depending on the type of contract mentioned above. The Company also does certain T&M service work that is generally completed in a short duration and is recognized at a point in time. All contract costs, including those associated with affirmative claims, change orders and back charges, are recorded as incurred and revisions to estimated total costs are reflected as soon as the obligation to perform is determined. Contract costs consist of direct costs on contracts, including labor and materials, amounts payable to subcontractors and outside equipment providers, direct overhead costs and internal equipment expense (primarily depreciation, fuel, maintenance and repairs). The company recognizes revenue, but not profit, on certain uninstalled materials. Revenue on these uninstalled materials is recognized when the cost is incurred (when control is transferred), but the associated profit is not recognized until the end of the project. The costs of uninstalled materials will be tracked separately within the Company’s accounting software. Pre-contract and bond costs, if required, on projects are generally immaterial to the total value of the Company’s contracts and are expensed when incurred. Project mobilization costs are also generally immaterial and charged to project costs as incurred. As a practical expedient, the Company recognizes these incremental costs as an expense when incurred if the amortization period of the asset that the entity otherwise would have recognized is one year or less. For projects expected to last greater than one year, mobilization costs will be capitalized as incurred and amortized over the expected duration of the project. For these projects, mobilization costs will be tracked separately in the Company’s accounting software. This includes costs associated with setting up a project lot or lay-down yard, equipment, tool and supply transportation, temporary facilities and utilities and worker qualification and safety training. Contracts may require the Company to warranty that work is performed in accordance with the contract; however, the warranty is not priced separately, and the Company does not offer customers an option to purchase a warranty. As of September 30, 2019, the Company does not have a material amount of costs expensed that would otherwise be capitalized and amortized. Principles of Consolidation The consolidated financial statements of Energy Services include the accounts of Energy Services and its wholly owned subsidiaries. All significant intercompany accounts and transactions have been eliminated in consolidation. Unless the context requires otherwise, references to Energy Services include Energy Services and its consolidated subsidiaries. Use of Estimates and Assumptions The preparation of financial statements, in conformity with accounting principles generally accepted in the United States of America, 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 income and loss during the reporting period. Actual results could differ materially from those estimates. Cash and Cash Equivalents Energy Services considers all highly liquid investments purchased with an original maturity of three months or less to be cash equivalents. Fair Value Measurements The Fair Value Measurements and Disclosures Topic of the Financial Accounting Standards Board (FASB) Accounting Standards Codification defines fair value, establishes a framework for measuring fair value in generally accepted accounting principles and expands disclosures about fair value measurements. Under the FASB’s authoritative guidance on fair value measurements, fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The Fair Value Measurements Topic of the FASB Accounting Standards Codification establishes a three-level hierarchy for fair value measurements based upon the transparency of inputs to the valuation of an asset or liability as of the measurement date. As noted above, there is a three-level valuation hierarchy for disclosure of fair value measurements. The valuation hierarchy is based upon the transparency of inputs to the valuation of an asset or liability as of the measurement date. The three levels are defined as follows: Level 1 — Quoted prices for identical assets and liabilities traded in active exchange markets, such as the New York Stock Exchange. Level 2 — Observable inputs other than Level 1 including quoted prices for similar assets or liabilities, quoted prices in less active markets, or other observable inputs that can be corroborated by observable market data. Level 2 also includes derivative contracts whose value is determined using a pricing model with observable market inputs or can be derived principally from or corroborated by observable market data. Level 3 — Unobservable inputs supported by little or no market activity for financial instruments whose value is determined using pricing models, discounted cash flow methodologies, or similar techniques, as well as instruments for which the determination of fair value requires significant management judgment or estimation; also includes observable inputs for nonbinding single dealer quotes not corroborated by observable market data. A financial instrument’s categorization within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement. The carrying amount for borrowings under the Company’s revolving credit facility approximates fair value because of the variable market interest rate charged to the Company for these borrowings. The fair value of the Company’s long term fixed-rate debt to unrelated parties was estimated using a discounted cash flow analysis and a yield rate that was estimated based on the borrowing rates currently available to the Company for bank loans with similar terms and maturities. The fair value of the aggregate principal amount of the Company’s fixed-rate debt of $16.0 million at September 30, 2019 was $16.0 million. The fair value of the aggregate principal amount of the Company’s fixed-rate debt of $10.3 million at September 30, 2018 was $10.2 million. All receivables and payables are carried at net realizable value which approximates fair value because of their short duration to maturity. Accounts Receivable and Allowance for Doubtful Accounts The Company’s accounts receivable consists of amounts that have billed to customers. Collateral is generally not required. A majority of the Company’s contracts have monthly billing terms and payment terms within 30 to 45 days after invoices have been issued. The Company attempts to negotiate two-week billing terms and 15-day payment terms on larger projects. The timing of billings to customers may generate contract assets or contract liabilities. Certain construction contracts include retention provisions to provide assurance to our customers that we will perform in accordance with the contract terms and are therefore not considered a financing benefit. The balances billed but not paid by customers pursuant to these provisions generally become due upon completion and acceptance of the project work or products by the customer. We have determined there are no significant financing components in our contracts for the year ended September 20, 2019. Retainage billed but not paid pursuant to contract provisions will be due upon completion of the contracts. Based on the Company’s experience management considers all amounts classified as retainage receivable to be collectible. All retainage receivable amounts are expected to be collected within the next fiscal year. The Company provides an allowance for doubtful accounts when collection of an account or note receivable is considered doubtful, and receivables are written off against the allowance when deemed uncollectible. Inherent in the assessment of the allowance for doubtful accounts are certain judgments and estimates including, among others, the customer’s access to capital, the customer’s willingness or ability to pay, general economic conditions and the ongoing relationship with the customer. Property and Equipment Property and equipment are recorded at cost. Costs which extend the useful lives or increase the productivity of the assets are capitalized, while normal repairs and maintenance that do not extend the useful life or increase productivity of the asset are expensed as incurred. Property and equipment are depreciated principally on the straight-line method over the estimated useful lives of the assets: buildings 39 years; operating equipment and vehicles 5-7 years; and office equipment, furniture and fixtures 5-7 years. Impairment of Long-Lived Assets A long-lived asset shall be tested for recoverability whenever events or changes in circumstances indicate that its carrying amount may not be recoverable. If an evaluation is required, the estimated future undiscounted cash flows associated with the asset would be compared to the asset’s carrying amount to determine if a write-down to market value is required. Claims Claims are amounts in excess of the agreed contract price that a contractor seeks to collect from customers or others for customer-caused delays, errors in specifications and designs, contract terminations, change orders in dispute or unapproved as to both scope and price, or other causes of unanticipated additional costs. The Company records revenue on claims that have a high probability of success. Revenue from a claim is recorded only to the extent that contract costs relating to the claim have been incurred. Self -Insurance The Company has its workers compensation, general liability and auto insurance through a captive insurance company. While the Company believes that this arrangement has been very beneficial in reducing and stabilizing insurance costs the Company does have to maintain a surety deposit to guarantee payments of premiums. The surety deposit had a balance of $1.9 million as of September 30, 2019, which is in “Prepaid expenses and other” on the Company’s Consolidated Balance Sheets. The surety deposit had a balance of $2.1 million as of September 30, 2018. Should the captive experience severe losses over an extended period, it could have a detrimental effect on the Company. Advertising All advertising costs are expensed as incurred. Total advertising expense was $71,000 and $101,000 for the years ended September 30, 2019 and 2018, respectively. Stock Compensation Plans The Company has issued restricted stock under its Long-Term Incentive Plan; however, there were no issuances in fiscal years 2019 or 2018. The Company accounts for its equity-based compensation as prescribed by U.S. Generally Accepted Accounting Principles for share-based payments. The Company has adopted a fair value-based method of accounting for employee equity-based plans, whereby compensation cost is measured at the grant date based on the fair value of the award and is recognized over the service period, which is usually the vesting period. As a result, compensation expense relating to stock compensation plans will be reflected in net income as part of “Salaries and employee benefits” on the Consolidated Statements of Income. Income Taxes The Company and all subsidiaries file a consolidated federal and various state income tax returns on a fiscal year basis. With few exceptions, the Company is no longer subject to U.S. federal, state, or local income tax examinations for years ending prior to September 30, 2016. The Company follows the liability method of accounting for income taxes in accordance with U.S. Generally Accepted Accounting Principles. Under this method, deferred tax assets and liabilities are recorded for future tax consequences of temporary differences between financial reporting and tax bases of assets and liabilities, and are measured using the enacted tax rates and laws that are expected to be in effect when the underlying assets or liabilities are recovered or settled. A valuation allowance is established to reduce deferred tax assets if it is more likely than not that a deferred tax asset will not be realized. U.S. GAAP also prescribes a comprehensive model for how companies should recognize, measure, present and disclose in their financial statements uncertain tax positions taken or to be taken on a tax return. This evaluation is a two-step process. First, the recognition process determines if it is more likely than not that a tax position will be sustained based on the merits of the tax position upon examination by the appropriate taxing authority. Second, a measurement process is calculated to determine the amount of benefit/expense to recognize in the financial statements if a tax position meets the more likely than not recognition threshold. The tax position is measured at the greatest amount of benefit/expense that is more likely than not of being realized upon ultimate settlement. Any interest and penalty related to the unrecognized tax benefits, as the result of recognition of tax obligations resulting from uncertain tax positions, are included in the provision for income taxes. The Company had not recognized any uncertain tax positions at September 30, 2019. Earnings Per Common Share Basic earnings per share is computed using the weighted average number of common shares outstanding during the year, and diluted earnings per share is computed using the weighted average number of common shares outstanding during the year adjusted for all potentially dilutive common stock equivalents, except in cases where the effect of the common stock equivalent would be anti-dilutive. Collective Bargaining Agreements Certain Energy Services subsidiaries are party to collective bargaining agreements with unions representing certain of their employees. The agreements require such subsidiaries to pay specified wages and provide certain benefits to the union employees. These agreements expire at various times and have typically been renegotiated and renewed on terms that are similar to the ones contained in the expiring agreements. Under certain collective bargaining agreements, the applicable Energy Services subsidiary is required to make contributions to multi-employer pension plans. If the subsidiary were to cease participation in one or more of these plans, a liability could potentially be assessed related to any underfunding of these plans. The amount of such assessment, were one to be made, cannot be reasonably estimated. Litigation Costs The Company reserves when it is probable that a liability has been incurred and the amount of loss can be reasonably estimated. Litigation costs are expensed as incurred. New Accounting Pronouncements In February 2016, the FASB issued ASU 2016‑02, “Leases (Topic 842)”. ASU 2016‑02 is effective for public business entities for fiscal years beginning after December 15, 2018 including interim periods within those fiscal years. Among other things, lessees will be required to recognize the following for all leases (except for short-term leases) at the commencement date: a lease liability, which is a lessee’s obligation to make lease payments arising from a lease, measured on a discounted basis; and a right-of-use asset, which is an asset that represents the lessee’s right to use, or control the use of, a specified asset for the lease term. The Company expects that the adoption of ASU 2016‑02 will not have a material impact on its financial statements or disclosure. Subsequent Events Management has evaluated subsequent events through December 20, 2019, the date which the financial statements were available for issue. There have been no material events noted during the period that would either impact the results reflected in the report or the Company’s results going forward. On December 11, 2019, the Company declared a $0.05 special dividend to be paid on December 31, 2019 for stockholders as of December 23, 2019. The payment of cash dividends in the future will be contingent upon our revenues and earnings, if any, capital requirements and general financial condition. The payment of any future dividends will be within the discretion of our board of directors. Subsequent to September 30, 2019, the Company had purchased 25,297 shares of common stock as of December 1, 2019, at a purchase value of $20,723.

REVENUE RECOGNITION

REVENUE RECOGNITION	12 Months Ended
	Sep. 30, 2019
REVENUE RECOGNITION
REVENUE RECOGNITION	3. The discussion and analysis of the Company’s financial condition and results of operations are based on our consolidated financial statements, which have been prepared in accordance with accounting principles generally accepted in the United States. The preparation of these consolidated financial statements requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosures of contingent assets and liabilities known to exist at the date of the consolidated financial statements and reported amounts of revenues and expenses during the reporting period. We evaluate our estimates on an ongoing basis, based on historical experience and on various other assumptions that are believed to be reasonable under the circumstances. There can be no assurance that actual results will not differ from those estimates. Management believes the following accounting policies affect our more significant judgments and estimates used in the preparation of our consolidated financial statements. As the adoption of Topic 606 did not have a material impact on the Company’s financial statements, there were no adjustments to previously stated balances. Revenue Recognition: As of October 1, 2018, we began to separately present contract assets and liabilities on the Company’s consolidated balance sheet. Contract assets include costs and estimated earnings in excess of billings that were previously separately presented. Contract liabilities include billings in excess of costs and estimated earnings that were previously separately presented as well as provisions for losses, when occurred, that were previously included in accrued expenses and other current liabilities. The accounting policies that were affected by Topic 606 and the changes thereto are as follows: Revenue Recognition: Our revenue is primarily derived from construction contracts that can span several quarters. We recognize revenue in accordance with Topic 606. Topic 606 provides for a five-step model for recognizing revenue from contracts with customers as follows: 1. Identify the contract 2. Identify performance obligations 3. Determine the transaction price 4. Allocate the transaction price 5. Recognize revenue The accuracy of our revenue and profit recognition in a given period depends on the accuracy of our estimates of the cost to complete each project. We believe our experience allows us to create materially reliable estimates. There are a number of factors that can contribute to changes in estimates of contract cost and profitability. The most significant of these include: - - - - - - - - - - - - The foregoing factors, as well as the stage of completion of contracts in process and the mix of contracts at different margins may cause fluctuations in gross profit from period to period. Significant changes in cost estimates, particularly in our larger, more complex projects have had, and can in future periods have, a significant effect on our profitability. The transaction price is the amount of consideration to which we expect to be entitled in exchange for transferring goods and services to the customer. The consideration promised in a contract with customers may include both fixed amounts and variable amounts (e.g. bonuses/incentives or penalties/liquidated damages) to the extent that a significant reversal of cumulative revenue recognized will not occur when the uncertainty associated with the variable consideration is subsequently resolved (i.e., probable and estimable). When a contract has a single performance obligation, the entire transaction price is attributed to that performance obligation. When a contract has more than one performance obligation, the transaction price is allocated to each performance obligation based on estimated relative standalone selling prices of the goods or services at the inception of the contract, which typically is determined using cost plus an appropriate margin. Subsequent to the inception of a contract, the transaction price could change for various reasons, including the executed or estimated amount of change orders and unresolved contract modifications and claims to or from owners. Changes that are accounted for as an adjustment to existing performance obligations are allocated on the same basis at contract inception. Otherwise, changes are accounted for as separate performance obligation(s) and the separate transaction price is allocated as discussed above. Changes are made to the transaction price from unapproved change orders to the extent the amount can be reasonably estimated, and recovery is probable. On certain projects we have submitted and have pending unresolved contract modifications and affirmative claims ("affirmative claims") to recover additional costs and the associated profit, if applicable, to which the Company believes it is entitled under the terms of contracts with customers, subcontractors, vendors or others. The owners or their authorized representatives and/or other third parties may be in partial or full agreement with the modifications or affirmative claims or may have rejected or disagree entirely or partially as to such entitlement. Costs to obtain our contracts ("pre-bid costs") that are not expected to be recovered from the customer are expensed as incurred and included in selling and administrative expenses on our consolidated statements of income. Costs to mobilize equipment and labor to a job site prior to substantive work beginning ("mobilization costs") are capitalized as incurred and amortized over the expected duration of the contract. As of June 30, 2019, we had no material capitalized mobilization costs. Contract Assets: Our contract assets include cost and estimated earnings in excess of billings that represent amounts earned and reimbursable under contracts, including claim recovery estimates, but have a conditional right for billing and payment such as achievement of milestones or completion of the project. With the exception of customer affirmative claims, generally, such unbilled amounts will become billable according to the contract terms and generally will be billed and collected over the next three months. Settlement with the customer of outstanding affirmative claims is dependent on the claims resolution process and could extend beyond one year. Based on our historical experience, we generally consider the collection risk related to billable amounts to be low. When events or conditions indicate that it is probable that the amounts outstanding become unbillable, the transaction price and associated contract asset is reduced. Contract Liabilities: Our contract liabilities consist of provisions for losses and billings in excess of costs and estimated earnings. Provisions for losses are recognized in the consolidated statements of income at the uncompleted performance obligation level for the amount of total estimated losses in the period that evidence indicates that the estimated total cost of a performance obligation exceeds its estimated total revenue. Billings in excess of costs and estimated earnings are billings to customers on contracts in advance of work performed, including advance payments negotiated as a contract condition. Generally, unearned project-related costs will be earned over the next twelve months.

DISAGGREGATION OF REVENUE

DISAGGREGATION OF REVENUE	12 Months Ended
	Sep. 30, 2019
DISAGGREGATION OF REVENUE
DISAGGREGATION OF REVENUE	4. We disaggregate our revenue based on our operating groups and contract types as it is the format that is regularly reviewed by management. Our reportable operating groups are: Petroleum and Gas, Water, Sewer and other services, and Electrical and Mechanical services. Our contract types are: Lump Sum, Unit Price, and Cost Plus and T&M. The following tables present our disaggregated revenue for the twelve months ended September 30, 2019 and 2018: Twelve Months Ended September 30, 2019 Petroleum & Water, Sewer and Electrical and Total revenue Gas Other Mechanical from contracts Lump sum contracts $ — $ — $ 21,305,113 $ 21,305,113 Unit price contracts 87,105,923 3,718,956 — 90,824,879 Cost plus and T&M contracts 3,138,455 407,221 15,286,061 18,831,737 Revenue from contracts in progress $ 90,244,378 $ 4,126,177 $ 36,591,174 $ 130,961,729 Lump sum contracts $ — $ — $ 13,643,771 $ 13,643,771 Unit price contracts 13,343,837 7,314,400 — 20,658,237 Cost plus and T&M contracts 1,919,411 692,831 6,665,176 9,277,418 Revenue from completed contracts $ 15,263,248 $ 8,007,231 $ 20,308,947 $ 43,579,426 Total revenue from contracts $ 105,507,626 $ 12,133,408 $ 56,900,121 $ 174,541,155 Earned over time $ 105,507,626 $ 12,133,408 $ 55,727,239 $ 173,368,273 Earned at point in time — — 1,172,882 1,172,882 Total revenue from contracts $ 105,507,626 $ 12,133,408 $ 56,900,121 $ 174,541,155 Twelve Months Ended September 30, 2018 Petroleum & Water, Sewer and Electrical and Total revenue Gas Other Mechanical from contracts Lump sum contracts $ — $ — $ 21,309,454 $ 21,309,454 Unit price contracts 53,615,010 5,393,359 — 59,008,369 Cost plus and T&M contracts 6,999,890 561,538 16,729,671 24,291,099 Revenue from contracts in progress $ 60,614,900 $ 5,954,897 $ 38,039,125 $ 104,608,922 Lump sum contracts $ — $ — $ 14,619,398 $ 14,619,398 Unit price contracts 9,070,997 3,190,889 — 12,261,886 Cost plus and T&M contracts — 96,960 3,895,605 3,992,565 Revenue from completed contracts $ 9,070,997 $ 3,287,849 $ 18,515,003 $ 30,873,849 Total revenue from contracts $ 69,685,897 $ 9,242,746 $ 56,554,128 $ 135,482,771 Earned over time $ 69,685,897 $ 9,242,746 $ 55,454,524 $ 134,383,167 Earned at point in time — — 1,099,604 1,099,604 Total revenue from contracts $ 69,685,897 $ 9,242,746 $ 56,554,128 $ 135,482,771

CONTRACT BALANCES

CONTRACT BALANCES	12 Months Ended
	Sep. 30, 2019
CONTRACT BALANCES
CONTRACT BALANCES	5. Accounts receivable, which are included in current assets on the Consolidated Balance Sheets, totaled $21.7 million at September 30, 2019, a $549,000 decrease from $22.2 million at September 30, 2018. The decrease was mainly due to timing of billings and receipts. Contract assets, which are included in current assets on the Consolidated Balance Sheets, totaled $6.7 million at September 30, 2019, a $1.3 million increase from $5.4 million at September 30, 2018. This was due to an increase in costs and estimated earnings in excess of billings on uncompleted projects. Contract liabilities, which are included in current liabilities on the Consolidated Balance Sheets, totaled $3.5 million at September 30, 2019, a $194,000 increase from $3.3 million at September 30, 2018. This was due to an increase in billings in excess of costs and estimated earnings on uncompleted projects. During the twelve months ended September 30, 2019, we recognized revenue of $2.0 million that was included in the contract liability balance at September 30, 2018. Accounts receivable, net of allowance for doubtful accounts, contract assets and contract liabilities consisted of the following: September 30, 2018 September 2019 Change Accounts receivable-trade, net of allowance for doubtful accounts $ 22,143,670 $ 21,608,312 $ (535,358) Contract assets Cost and estimated eanings in excess of billings $ 5,353,375 $ 6,659,707 $ 1,306,332 Contract liabilites Billings in excess of cost and estimated earnings $ 3,261,201 $ 3,455,288 $ 194,087

PERFORMANCE OBLIGATIONS

PERFORMANCE OBLIGATIONS	12 Months Ended
	Sep. 30, 2019
PERFORMANCE OBLIGATIONS
PERFORMANCE OBLIGATIONS	6. For the year ended September 30, 2019, we recognized revenue of $85,000 a result of changes in contract transaction price related to performance obligations that were satisfied prior to September 30, 2018. The changes in contract transaction price were from items such as changes in projected profit, executed or estimated change orders, and unresolved contract modifications and claims. At September 30, 2019, the Company had $7.5 million in remaining unsatisfied performance obligations, in which revenue is expected to be recognized in less than twelve months.

ALLOWANCE FOR DOUBTFUL ACCOUNTS

ALLOWANCE FOR DOUBTFUL ACCOUNTS	12 Months Ended
	Sep. 30, 2019
ALLOWANCE FOR DOUBTFUL ACCOUNTS
ALLOWANCE FOR DOUBTFUL ACCOUNTS	7. Activity in the Company’s allowance for doubtful accounts consists of the following: Year Ended September 30, 2019 2018 Balance at beginning of year $ 83,885 $ 108,200 Charged to expense — — Deductions for uncollectible receivables written off, net of recoveries (13,575) (24,315) Balance at end of year $ 70,310 $ 83,885

UNCOMPLETED CONTRACTS

UNCOMPLETED CONTRACTS	12 Months Ended
	Sep. 30, 2019
UNCOMPLETED CONTRACTS
UNCOMPLETED CONTRACTS	8. Costs and estimated earnings in excess of billings on uncompleted contracts are included in contract assets on the consolidated balance sheet. Billings in excess of costs and estimated earnings on uncompleted contracts are included in contract liabilities on the consolidated balance sheets. Costs, estimated earnings, and billings on uncompleted contracts are summarized as follows: Year Ended September 30, 2019 2018 Costs incurred on contracts in progress $ 163,768,655 $ 154,793,209 Estimated earnings, net of estimated losses 18,215,388 11,687,859 181,984,043 166,481,068 Less billings to date 178,779,624 164,388,894 $ 3,204,419 $ 2,092,174 Costs and estimated earnings in excess of billed on uncompleted contracts $ 6,659,707 $ 5,353,375 Less billings in excess of costs and estimated earnings on uncompleted contracts 3,455,288 3,261,201 $ 3,204,419 $ 2,092,174

CLAIMS

CLAIMS	12 Months Ended
	Sep. 30, 2019
CLAIMS
CLAIMS	9. The Company does not have any claims receivable as of September 30, 2019. Claims receivable is a component of contract assets.

PROPERTY, PLANT AND EQUIPMENT

PROPERTY, PLANT AND EQUIPMENT	12 Months Ended
	Sep. 30, 2019
PROPERTY, PLANT AND EQUIPMENT
PROPERTY, PLANT AND EQUIPMENT	10. Property,plant and equipment consist of the following: Year Ended September 30, 2019 2018 Land $ 2,464,512 $ 2,333,106 Buildings and leasehold improvements 5,348,851 4,761,019 Operating equipment and vehicles 42,703,353 40,434,150 Office equipment, furniture and fixtures 751,642 747,330 Assets not yet in service — 2,822 51,268,358 48,278,427 Less accumulated depreciation 34,453,157 31,462,438 Property, plant and equipment, net $ 16,815,201 $ 16,815,989

SHORT-TERM DEBT

SHORT-TERM DEBT	12 Months Ended
	Sep. 30, 2019
SHORT-TERM DEBT
SHORT-TERM DEBT	11. Short-term debt consists of the following: On March 21, 2018, the Company entered into a financing agreement (“Operating Line of Credit (2018)”) with United Bank, Inc ., ("United Bank"), to provide the Company with a $15.0 million revolving line of credit. This line had a $12.5 million component and a $2.5 million component, each with separate borrowing requirements. The interest rate on the line of credit is the “Wall Street Journal” Prime Rate (the index) with a floor of 4.99%. The effective date of this agreement was February 27, 2018 and it replaced the $15.0 million revolving line of credit (“Operating Line of Credit (2017)”) entered into with United Bank effective February 27, 2017. Operating Line of Credit (2018) expired on February 28, 2019 but was extended through April 28, 2019. The Company received a twelve-month extension ("Operating Line of Credit (2019)") through April 28, 2020 on May 7, 2019. The Company had borrowed $5.5 million against the Operating Line of Credit (2018) as of September 30, 2018 and had up to $7.0 million available to borrow against the first $12.5 million depending on the Company’s borrowing base report. The Company had borrowed an additional $4.5 million for a total of $10.0 million against the Operating Line of Credit (2019) as of May 30, 2019. On May 30, 2019, the Company entered into Term Note 2019 with United Bank which refinanced the $10.0 million borrowed on Operating Line of Credit (2019) to a five-year term note with a fixed interest rate of 5.50%. The purpose of this note is to finance a specific construction project completed in September 2019. Company anticipates paying off Term Note (2019) in less than one year. The refinancing effectively reset the Company’s line of credit borrowings to zero as of May 30, 2019 and did not affect the conditions of subsequent borrowings. Based on the borrowing base calculation, the Company could borrow up to $11.5 million as of September 30, 2019. The Company had borrowed $3.5 million on the line of credit, leaving $8.0 million available on the line of credit. Major items excluded from the borrowing base calculation are receivables from bonded jobs and retainage as well as all items greater than ninety (90) days old. Line of credit borrowings are collateralized by the Company’s accounts receivable. Cash available under the line is calculated based on 70.0% of the Company’s eligible accounts receivable. Major items excluded from the calculation are receivables from bonded jobs and retainage as well as items greater than 90 days old. Under the terms of the agreement, the Company must meet the following loan covenants to access the first $12.5 million: 1. Minimum tangible net worth of $19.0 million to be measured quarterly 2. Minimum traditional debt service coverage of 1.25x to be measured quarterly on a rolling twelve- month basis 3. Minimum current ratio of 1.50x to be measured quarterly 4. Maximum debt to tangible net worth ratio (“TNW”) of 2.0x to be measured semi-annually 5. Full review of accounts receivable aging report and work in progress. The results of the review shall be satisfactory to the lender in its sole and unfettered discretion. Under the terms of the agreement, the Company must meet the following additional requirements for draw requests causing the borrowings to exceed $12.5 million: 1. Minimum traditional debt service coverage of 2.0x to be measured quarterly on a rolling twelve-month basis 2. Minimum tangible net worth of $21.0 million to be measured quarterly The Company was in compliance with all covenants for the $12.5 million component of Operating Line of Credit (2019) at September 30, 2019. The Company also finances insurance policy premiums on a short-term basis through a financing company. These insurance policies include workers’ compensation, general liability, automobile, umbrella, and equipment policies. It is typical that the Company makes a down payment in January and finances the remaining premium amount over nine or ten monthly payments. In January 2019, The Company financed $3.2 million in insurance premium policies. At September 30, 2019, the balance of the remaining premiums to be paid was $526,000.

SHORT-TERM AND LONG-TERM DEBT

SHORT-TERM AND LONG-TERM DEBT	12 Months Ended
	Sep. 30, 2019
SHORT-TERM AND LONG-TERM DEBT
SHORT-TERM AND LONG-TERM DEBT	12. A summary of short-term and long-term debt as of September 30, 2019 and 2018 is as follows: 2019 2018 Line of credit payable to bank, monthly interest at 5.50%, final payment due by April 28, 2020. $ 3,500,000 $ 5,500,000 Notes payable to finance companies, due in monthly installments totaling $83,042 including interest ranging from 0.00% to 6.03%, final payments due October 2019 through August 2026, secured by equipment. 1,691,991 1,332,993 Note payable to finance company for insurance premiums financed, due in monthly installments totaling $267,677 in FY 2019 and $288,581 in FY 2018, including interest rate at 2.77%, final payment due November 2019. 525,710 569,247 Notes payable to bank, due in monthly installments totaling $7,799, including interest at 4.82%, final payment due November 2034 secured by building and property. 1,012,126 1,054,248 Notes payable to bank, due in monthly installments totaling $11,828, including interest at 5.00%, final payment due November 2025 secured by building and property. 751,987 851,768 Notes payable to bank, due in monthly installments totaling $172,473, including interest at 6.50%, final payment due February 2019 secured by equipment. — 702,097 Notes payable to bank, due in monthly installments totaling $30,914, including interest at 5.00%, final payment due February 2019 secured by equipment. — 154,116 Notes payable to bank, due in monthly installments totaling $98,865, including interest at 4.99%, final payment due September 2022 secured by equipment. 3,040,600 4,045,025 Notes payable to bank, due in monthly installments totaling $46,482, including interest at 5.00%, final payment due September 2021 secured by equipment. 1,011,160 1,549,651 Notes payable to bank, due in monthly installments totaling $191,012, including interest at 5.50%, final payment due September 2021 secured by equipment. 7,920,005 — Total debt 19,453,579 15,759,145 Less current maturities 8,429,283 9,290,515 Total long term debt $ 11,024,296 $ 6,468,630 Future expected payments due on long-term debt are as follows: 2020 $ 8,429,283 2021 3,977,300 2022 3,286,263 2023 2,419,847 2024 273,646 Thereafter 1,067,240 $ 19,453,579

INCOME TAXES

INCOME TAXES	12 Months Ended
	Sep. 30, 2019
INCOME TAXES
INCOME TAXES	13. The components of income taxes are as follows: Year Ended September 30, 2019 2018 Federal Current $ 289,476 $ 836,977 Deferred 466,009 (333,740) Total 755,485 503,237 State Current 81,647 212,524 Deferred 131,439 194,273 Total 213,086 406,797 Total income tax expense $ 968,571 $ 910,034 The provision for income taxes differs from the amount computed by applying a prorated federal rate of 21.0% for fiscal year 2019 and a statutory federal rate of 24.5% for fiscal year 2018 on income from operations, as indicated in the following analysis: Year Ended September 30, 2019 2018 Statutory rate 21.00 % 24.50 % State income taxes 6.00 % 8.99 % Meals and other 5.70 % 11.84 % Rate change effect on deferred taxes 0.00 % (18.71) % Effective tax rate 32.70 % 26.62 % Deferred income taxes provide for significant differences between the basis of assets and liabilities for financial reporting and income tax reporting. A valuation allowance is established when necessary to reduce deferred tax assets to the amount expected to be realized. The income tax effects of temporary differences giving rise to the deferred tax assets and liabilities are as follows: Year Ended September 30, 2019 2018 Deferred income tax liabilities Long-term Property and equipment $ 2,539,639 $ 2,023,641 Other (19,805) 4,639 Total deferred income tax liabilities 2,519,834 2,028,280 Deferred income tax assets Long-term Other 594,011 699,905 Total deferred income tax assets 594,011 699,905 Total net deferred income tax liabilities $ 1,925,823 $ 1,328,375 The Tax Cuts and Jobs Act of 2017 (the “Act”) was enacted on December 22, 2017. Consequent to the passage of the Act, the Company’s deferred tax assets and liabilities were adjusted for the effects of the Act’s changes in the tax law and rates. For the year ended September 30, 2018, the Company realized approximately $588,000 in income tax benefits recorded to income tax expense to reflect the impact of the Act’s rate change on the Company’s net deferred tax assets. The Company does not believe that it has any unrecognized tax benefits included in its consolidated financial statements that require recognition. The Company has not had any settlements in the current period with taxing authorities, nor has it recognized tax benefits as a result of a lapse of the applicable statute of limitations. The Company recognizes interest and penalties accrued related to unrecognized tax benefits, if applicable, in general and administrative expenses.

EARNINGS PER SHARE

EARNINGS PER SHARE	12 Months Ended
	Sep. 30, 2019
EARNINGS PER SHARE
EARNINGS PER SHARE	14. Earnings per share for the years ended September 30, 2019 and 2018 are as follow: Twelve Months Ended Twelve Months Ended September 30, September 30, 2019 2018 Net income $ 1,992,910 $ 2,509,023 Dividends on preferred stock 309,000 309,000 Income available to common shareholders $ 1,683,910 $ 2,200,023 Weighted average shares outstanding 14,064,871 14,234,571 Weighted average shares outstanding-diluted 17,498,204 17,667,904 Earnings per share available to common shareholders $ 0.120 $ 0.155 Earnings per share available to common shareholders-diluted $ 0.096 $ 0.125

STOCK PURCHASE PLAN

STOCK PURCHASE PLAN	12 Months Ended
	Sep. 30, 2019
STOCK PURCHASE PLAN
STOCK PURCHASE PLAN	15. At the annual meeting of the shareholders on November 19, 2008 the shareholders approved the establishment of an employee stock purchase plan. The stock purchase plan authorizes the issuance of up to 1,200,000 shares of common stock for purchase by eligible employees. A participant’s stock purchased during a calendar year may not exceed the lesser of (a) a percentage of the participant’s compensation or a total amount as specified by the compensation committee of the Board, or (b) $25,000. The stock will be offered at a purchase price of at least 85% of its fair market value on the date of purchase. The major plan provisions cover the purposes of the plan, effective date and duration, administration, eligibility, stock type, stock purchase limitations, price of stock, participation election, payroll deductions, payment for stock, date of purchase, termination of agreement, termination of employment, recapitalization, change of control, assignability, Stockholder rights, compliance with Internal Revenue Code Section 423, amendment and termination, application of funds, tax withholdings, governing laws, employment at will and arbitration. There have been no agreements with any employees made under this plan as of the year ended September 30, 2019. On August 3, 2018, the Company announced that the Board of Directors authorized a stock repurchase program under which the Company would purchase up to 10%, or approximately 1,423,984 shares, of the Company’s issued and outstanding stock. The repurchase program started on August 15,2018 and expired on August 15, 2019. The program resulted in the repurchase of 305,908 shares. On August 22, 2019, the Company announced that the Board of Directors authorized a stock repurchase program under which the Company would purchase up to 10%, or approximately 1,393,393 shares, of the Company's issued and outstanding stock. The purchase program started on August 26, 2019 and will expire on August 26, 2020. The program resulted in the repurchase of 9,139 shares through September 30, 2019. Subsequent to September 30, 2019, the Company had purchased 25,297 shares of common stock as of December 1, 2019, at a purchase value of $20,723.

LONG TERM INCENTIVE PLAN

LONG TERM INCENTIVE PLAN	12 Months Ended
	Sep. 30, 2019
LONG TERM INCENTIVE PLAN
LONG TERM INCENTIVE PLAN	16. At the annual meeting of the shareholders on August 11, 2010, the shareholders approved the Energy Services of America Corporation Long Term Incentive Plan (the “LTIP”), to provide employees and directors of the Company with additional incentives to promote the growth and performance of the Company. At September 30, 2011, future awards of 1,149,000 shares could be made under the plan. On August 11, 2010, a total of 51,000 shares were granted to six officers of the Company at a grant date fair value per share of $4.22. These grants vested over a period of three years. Market value of the grants was $215,220 and was recognized as compensation expense over the vesting period. For the years ended September 30, 2019 and 2018, respectively, $0 and $0 were recognized as compensation expense and $0 and $0 as deferred tax benefit as a result of these grants. All stock grants have vested or been forfeited as of September 30, 2019.

RELATED PARTY TRANSACTIONS

RELATED PARTY TRANSACTIONS	12 Months Ended
	Sep. 30, 2019
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS	17. We intend that all transactions between us and our executive officers, directors, holders of 10% or more of the shares of any class of our common stock and affiliates thereof, will be on terms no less favorable than those terms given to unaffiliated third parties and will be approved by a majority of our independent outside directors not having any interest in the transaction. On December 16, 2014, the Company’s Nitro subsidiary entered into a 20‑year $1.2 million loan agreement with First Bank of Charleston, Inc. (West Virginia) to purchase the office building and property it had previously been leasing for $6,300 each month. Mr. Douglas Reynolds, President of Energy Services, was a director and secretary of First Bank of Charleston. Mr. Nester Logan and Mr. Samuel Kapourales, directors of Energy Services, were also directors of First Bank of Charleston. On October 15, 2018, First Bank of Charleston was merged into Premier Bank, Inc., a wholly owned subsidiary of Premier Financial Bancorp, Inc. Mr. Marshall Reynolds, Chairman of the Board of Energy Services, holds the same position with Premier Financial Bancorp Inc. Mr. Keith Molihan and Mr. Neal Scaggs are both directors of Energy Services and hold the same position with Premier Financial Bancorp, Inc. The interest rate on the loan agreement is 4.82% with monthly payments of $7,800. As of September 30, 2019, we have paid approximately $189,000 in principal and approximately $256,000 in interest since the beginning of the loan. There were no new material related party transactions during fiscal year ended September 30, 2019. Certain Energy Services subsidiaries routinely engage in transactions in the normal course of business with each other, including sharing employee benefit plan coverage, payment for insurance and other expenses on behalf of other affiliates, and other services incidental to business of each of the affiliates. All revenue and related expense transactions, as well as the related accounts payable and accounts receivable have been eliminated.

LEASE OBLIGATIONS

LEASE OBLIGATIONS	12 Months Ended
	Sep. 30, 2019
LEASE OBLIGATIONS
LEASE OBLIGATIONS	18. The Company leases various pieces of equipment under operating lease agreements with terms up to 36 months. Total operating lease payments were $169,000 and $36,000 for fiscal years ended September 30, 2019 and 2018, respectively. The future minimum lease payments under operating leases as of September 30, 2019, are as follows: 2020 $ 62,260 $ 62,260 The Company rents equipment for use on construction projects with rental agreements being week to week or month to month. Rental expense can vary by fiscal year due to equipment requirements on construction projects and the availability of Company owned equipment. Rental expense was $10.0 million and $5.2 million for fiscal years ended September 30, 2019 and 2018, respectively.

MAJOR CUSTOMERS

MAJOR CUSTOMERS	12 Months Ended
	Sep. 30, 2019
MAJOR CUSTOMERS
MAJOR CUSTOMERS	19. The Company had two customers that exceeded 10.0% of revenues for the year ended September 30, 2019. The two customers, Full Stream Goff Connector, LLC and TransCanada Corporation, represented 29.0% and 11.8% of revenues. The Company had two customers that exceeded 10.0% of receivables net of retention. These two customers, Full Stream Goff Connector, LLC and TransCanada Corporation, represented 22.0% and 12.2% of receivables net of retention, respectively. The Company had two customers that exceeded 10.0% of revenues for the year ended September 30, 2018. The two customers, Full Stream Goff Connector, LLC and Toyota Motor Manufacturing, represented 17.3% and 13.3% of revenues. The Company had two customers that exceeded 10.0% of receivables net of retention. These two customers, Full Stream Goff Connector, LLC and TransCanada Corporation, represented 25.5% and 22.3% of receivables net of retention, respectively. The Company’s consolidated operating revenues for the year ended September 30, 2019 were $174.5 million of which 60.4% was attributable to gas and petroleum contract work, 32.6% to electrical and mechanical contract services and 7.0% to water and sewer contract installations and other ancillary services. The Company’s consolidated operating revenues for the year ended September 30, 2018 were $135.5 million of which 51.5% was attributable to gas and petroleum contract work, 41.7% to electrical and mechanical contract services and 6.8% to water and sewer contract installations and other ancillary services. Virtually all work performed for major customers was awarded under competitive bid fixed price or unit price arrangements. The loss of a major customer could have a severe impact on the profitability of operations of the Company. However, due to the nature of the Company’s operations, the major customers and sources of revenues may change from year to year.

RETIREMENT AND EMPLOYEE BENEFIT

RETIREMENT AND EMPLOYEE BENEFIT PLANS	12 Months Ended
	Sep. 30, 2019
RETIREMENT AND EMPLOYEE BENEFIT PLANS
RETIREMENT AND EMPLOYEE BENEFIT PLANS	20. In 2019 and 2018, C. J. Hughes Construction Company, Inc., maintained a tax-qualified 401(k) retirement plan for union employees. Employees can contribute up to 15% of eligible wages, provided the compensation deferred for a plan year did not exceed the indexed dollar amount set by the Internal Revenue Service which was $19,000 for 2019 and $18,500 for 2018. C. J. Hughes matches $0.25 on each dollar contributed up to 6% of eligible wages. C. J. Hughes contributed $12,390 and $9,966 to the union plan for fiscal years ended September 30, 2019 and 2018, respectively. Additionally, each plan year, C. J. Hughes may make a discretionary profit-sharing contribution for participants who are actively employed on the last day of the plan year. No discretionary profit-sharing contribution was made for the 2019 or 2018 plan year. Effective January 1, 2010, Energy Services of America became the successor plan sponsor of the C. J. Hughes Construction Company, Inc. 401(k) Plan for non-union employees (the “Plan”). The Plan was renamed the Energy Services of America Staff Retirement Plan. Employees are eligible to participate in the Plan upon completion of six months of service but must wait until a quarterly entry to join the Plan. Employees may contribute eligible wages up to the maximum indexed dollar amount set by the Internal Revenue Service which was $19,000 for 2019 and $18,500 for 2018. Energy Services may make annual discretionary matching contributions and/or profit-sharing contributions to the Plan. The matching contribution formula for the Plan was 100% of each dollar contributed for the first 3% of eligible wages and 50% of each dollar contributed for the next 3% of eligible wages. The Company’s matching contribution is used by the Plan’s third-party administrator to purchase Energy Services of America stock from the open market. No restrictions on the match exist after it has been contributed. No profit-sharing contribution was made for the 2019 or 2018 plan year. Energy Services of America and its wholly owned subsidiaries contributed $281,000 and $238,000, respectively, for the fiscal years ended September 30, 2019 and 2018 to the Plan. The Company contributes to a number of multi-employers defined benefit pension plans under the terms of collective-bargaining agreements that cover its union-represented employees. The risks of participating in these multi-employer plans are different from single-employer plans in the following aspects: · Assets contributed to the multi-employer plan by one employer may be used to provide benefits to employees of other participating employers. If a participating employer stops contributing to the plan, the unfunded obligations of the plan may be borne by the remaining participating employers. · If the Company chooses to stop participating in some of its multi-employer plans, the Company may be required to pay those plans an amount based on the underfunded status of the plan, referred to as a withdrawal liability. The following table presents our participation in these plans: Contibutions of Pension Protection Act ("PPA") Energy Services of America Certified Zone Status (1) FIP/RP Status Companies Expiration Date of EIN/Pension Pending/ Surcharge Collective Bargaining Pension Fund Plan Number 2018 2017 Implemented (2) 2018 2017 2016 Imposed Agreement Central States, Southeast and Southwest Areas Pension Fund 36-6044243/001 Red Red Implemented $ 189,644 $ — $ — no Various National Automatic Sprinkler Industry Pension Fund 52-6054620/001 Red Red Implemented 131,141 99,731 — no Various Iron Workers District Council of Southern Ohio &Vicinity Pension Trust 31-6038516/001 Yellow Yellow Implemented 122,683 57,960 — no Various Carpenters Pension Fund of WV 55-6027998/001 Red Red Implemented 746,743 444,455 — no Various Plumbers & Pipefitters National Pension Fund 52-6152779/001 Yellow Yellow Implemented 786,940 1,929,939 1,034,996 no Various Sheet Metal Workers' National Pension Fund 52-6112463/001 Yellow Yellow Implemented 125,982 153,542 182,991 no Various Sheet Metal Workers Local Pension Fund 34-6666753/001 Red Red Implemented 71,143 11,483 — no Various Plumbers and Pipefitters Local 152 Pension Fund 55-6029095/001 Red Red Implemented 19,511 — — no Various All Other Green Green 6,313,624 4,087,927 6,152,291 no Various $ 8,507,411 $ 6,785,037 $ 7,370,278 (1) The most recent PPA zone status available in 2019 and 2018 is the the plan's year-end during 2018 and 2017, respectively. The zone status is based on information that we received from the plan and is certified by the plan's actuary. Among other factors, plans in the red zone are generally less than 65 percent funded, plans in the orange zone are less than 80 percent funded and have an Accumulated Funding Deficiency in the current year or projected into the next six years, plans in the yellow zone are less than 80 percent funded, and plans in the green zone are at least 80 percent funded. (2) Indicates whether the plan has a financial improvement plan ("FIP") or a rehabilitation plan ("RP") which is either pending or has been implemented. The Company currently does not have intentions of withdrawing from any of the multi-employer pension plans in which it participates.

CREDIT RISK

CREDIT RISK	12 Months Ended
	Sep. 30, 2019
CREDIT RISK
CREDIT RISK	21. Financial instruments which potentially subject the Company to credit risk consist primarily of cash, cash equivalents and contract receivables. The Company places its cash with high quality financial institutions. At times, the balances in such institutions may exceed the FDIC insurance limit of $250,000 per depositor, per insured bank, for each account ownership category. FDIC insurance covers all deposit accounts, including checking accounts, savings accounts, money market deposit accounts, and certificates of deposit. As of September 30, 2019, the Company had $4.7 million of uninsured deposits. The Company performs periodic credit evaluations of its customer’s financial condition and generally does not require collateral. Credit losses consistently have been within management’s expectations.

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	12 Months Ended
	Sep. 30, 2019
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES	22. During the normal course of operations, the companies are subject to certain subcontractor claims, mechanic’s liens, and other litigation. Management is of the opinion that no material obligations will arise from any pending legal proceedings. Accordingly, no provision has been made in the financial statements for such litigation. Some customers, particularly new ones or governmental agencies require the Company to post bid bonds, performance bonds and payment bonds (collectively, performance bonds). These bonds are obtained through insurance carriers and guarantee to the customer that we will perform under the terms of a contract and that we will pay subcontractors and vendors. If the Company fails to perform under a contract or to pay subcontractors and vendors, the customer may demand that the insurer make payments or provide services under the bond. The Company must reimburse the insurer for any expenses or outlays it is required to make. In February 2014, the Company entered into an agreement with a surety company to provide bonding which will suit the Company’s immediate needs. The ability to obtain bonding for future contracts is an important factor in the contracting industry with respect to the type and value of contracts that can be bid. Depending upon the size and conditions of a particular contract, the Company may be required to post letters of credit or other collateral in favor of the insurer. Posting of these letters or other collateral will reduce our borrowing capabilities. The Company does not anticipate any claims in the foreseeable future. At September 30, 2019, the Company had $5.7 million in performance bonds outstanding.

QUARTERLY FINANCIAL DATA (UNAUD

QUARTERLY FINANCIAL DATA (UNAUDITED)	12 Months Ended
	Sep. 30, 2019
QUARTERLY FINANCIAL DATA (UNAUDITED)
QUARTERLY FINANCIAL DATA (UNAUDITED)	23. Quarterly financial data for continuing operations for 2019 and 2018 are summarized below: 2019 First Quarter Second Quarter Third Quarter Fourth Quarter Total Revenue $ 49,114,139 $ 46,955,444 $ 40,187,978 $ 38,283,594 $ 174,541,155 Operating income (loss) 1,078,454 (1,420,888) 1,229,693 2,935,153 3,822,412 Net income (loss) 631,384 (1,124,458) 485,757 2,000,227 1,992,910 Dividends on preferred stock 77,250 77,250 77,250 77,250 309,000 Net income (loss) available to common shareholders $ 554,134 $ (1,201,708) $ 408,507 $ 1,922,977 $ 1,683,910 Weighted-basic shares outstanding 14,135,900 14,060,456 13,985,579 13,934,720 14,064,871 Weighted-diluted shares outstanding 17,569,233 14,060,456 17,418,912 17,368,053 17,498,204 Earnings (loss) per share available to common shareholders $ 0.039 $ (0.085) $ 0.029 $ 0.138 $ 0.120 Earnings (loss) per share-diluted available to common shareholders $ 0.032 $ (0.085) $ 0.023 $ 0.111 $ 0.096 2018 First Quarter Second Quarter Third Quarter Fourth Quarter Total Revenue $ 32,547,603 $ 23,093,033 $ 29,549,659 $ 50,292,476 $ 135,482,771 Operating income (loss) (33,637) (900,258) 1,610,087 3,244,880 3,921,072 Net income (loss) 148,500 (947,575) 1,096,267 2,211,831 2,509,023 Dividends on preferred stock 77,250 77,250 77,250 77,250 309,000 Net income (loss) available to common shareholders $ 71,250 $ (1,024,825) $ 1,019,017 $ 2,134,581 $ 2,200,023 Weighted-basic shares outstanding 14,239,836 14,239,836 14,239,836 14,218,949 14,234,571 Weighted-diluted shares outstanding 17,673,169 14,239,836 17,673,169 17,652,282 17,667,904 Earnings (loss) per share available to common shareholders $ 0.005 $ (0.072) $ 0.072 $ 0.150 $ 0.155 Earnings (loss) per share -diluted available to common shareholders $ 0.004 $ (0.072) $ 0.058 $ 0.121 $ 0.125

CONDENSED PARENT COMPANY ONLY F

CONDENSED PARENT COMPANY ONLY FINANCIAL STATEMENTS	12 Months Ended
	Sep. 30, 2019
CONDENSED PARENT COMPANY ONLY FINANCIAL STATEMENTS
CONDENSED PARENT COMPANY ONLY FINANCIAL STATEMENTS	24. ENERGY SERVICES OF AMERICA CORPORATION (Parent Only) BALANCE SHEETS As of September 30, 2019 and 2018 2019 2018 Assets Current assets Cash and cash equivalents $ 59,831 $ 499,750 Other receivables (307) (307) Prepaid expenses and other 2,412,348 3,906,287 Total current assets 2,471,872 4,405,730 Property, plant and equipment, at cost 248,402 248,402 less accumulated depreciation (230,628) (226,285) 17,774 22,117 Due from subsidiaries 8,343,282 4,531,173 Deferred tax asset 218,093 329,150 Investment in subsidiaries 30,530,562 27,466,387 Total assets $ 41,581,583 $ 36,754,557 Liabilities and shareholders' equity Current liabilities Current maturities of long-term debt $ 3,504,301 $ 2,459,680 Lines of credit and short term borrowings 4,025,710 6,069,247 Accounts payable 68,921 33,839 Accrued expenses and other current liabilities 98,843 67,767 Total current liabilities 7,697,775 8,630,533 Long-term debt, less current maturities 9,219,451 4,842,977 Total liabilities 16,917,226 13,473,510 Shareholders' equity Preferred stock, $.0001 par value Authorized 1,000,000 shares,206 issued at September 30, 2019 and 2018 — — Common stock, $.0001 par value Authorized 50,000,000 shares 14,839,836 issued and 13,924,789 outstanding at September 30, 2019 and 14,239,836 issued and 14,194,517 outstanding at September 30, 2018 1,484 1,484 Treasury stock, 915,047 shares at September 30, 2019 and 645,319 shares at September 30, 2018 (91) (65) Additional paid in capital 60,938,896 61,239,470 Retained earnings (deficit) (36,275,932) (37,959,842) Total shareholders' equity 24,664,357 23,281,047 Total liabilities and shareholders' equity $ 41,581,583 $ 36,754,557 ENERGY SERVICES OF AMERICA CORPORATION (Parent Only) STATEMENTS OF INCOME For the years ended September 30, 2019 and 2018 2019 2018 Selling and administrative expenses $ 1,399,725 $ 1,226,854 Net loss from operations before taxes (1,399,725) (1,226,854) Other nonoperating income (expense) (1,043) 6,239 Interest income 58,023 132,281 Interest expense (960,068) (811,801) Interest allocation to subsidiaries 885,316 763,328 Net loss before tax (1,417,497) (1,136,807) Income tax benefit (346,232) (259,327) Net loss from parent (1,071,265) (877,480) Equity in undistributed income income of subsidiaries 3,064,175 3,386,503 Dividends on preferred stock (309,000) (309,000) Net income available to common shareholders $ 1,683,910 $ 2,200,023 Weighted average shares outstanding- basic 14,064,871 14,234,571 Weighted average shares-diluted 17,498,204 17,667,904 Net earnings per share-basic available to common shareholders $ 0.120 $ 0.155 Net earnings per share-diluted available to common shareholders $ 0.096 $ 0.125 ENERGY SERVICES OF AMERICA CORPORATION (Parent Only) CONSOLIDATED STATEMENTS OF CASH FLOWS For the years ended September 30, 2019 and 2018 2019 2018 Cash flows form operating activities: Net income $ 1,992,910 $ 2,509,023 Adjustments to reconcile net income to net cash (used in) provided by operating activities Provision for deferred taxes 111,057 397,374 Depreciation expense 4,343 5,552 Equity in undistributed income of subsidiaries (3,064,175) (3,386,503) Advances (to) from subsidiaries (3,812,109) 7,073,607 Changes in: Decrease in prepaid expenses 1,493,939 107,045 Decrease in other receivable — 307 Increase (decrease) in accounts payable 35,082 (29,519) Increase (decrease) in accrued expenses and other current liabilities 31,076 (97,176) Net cash (used in) provided by operating activities (3,207,877) 6,579,710 Cash flows from investing activities: Investment in property & equipment — — Net cash used in investing activities — — Cash flows from financing activities: Borrowings on lines of credit and short-term debt, net of (repayments) 7,956,463 (3,363,721) Principal payments on long term debt (4,578,905) (3,825,589) Preferred dividends paid (309,000) (309,000) Treasury stock purchased by company (300,600) (49,795) Net cash provided by (used in) financing activities 2,767,958 (7,548,105) Decrease in cash and cash equivalents (439,919) (968,395) Cash beginning of period 499,750 1,468,145 Cash end of period $ 59,831 $ 499,750 Supplemental schedule of noncash investing and financing activities: Insurance premiums financed $ 3,159,083 $ 3,130,859 Accrued dividends on preferred stock $ 77,250 $ 77,250 Line of credit refinanced to long-term debt $ 10,000,000 $ — Supplemental disclosures of cash flows information: Cash paid during the year for: Interest $ 1,064,222 $ 811,801 Income taxes $ 798,430 $ 346,065

SUMMARY OF SIGNIFICANT ACCOUN_2

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	12 Months Ended
	Sep. 30, 2019
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Revenue Recognition	Revenue Recognition On October 1, 2018, the Company adopted an Accounting Standard Update, Revenue from Contracts with Customers (Topic 606) . The core principle of Topic 606 is that revenue will be recognized when promised goods or services are transferred to customers in an amount that reflects consideration for which entitlement is expected in exchange for those goods or services. We adopted Topic 606 using a modified retrospective transition approach and elected to apply Topic 606 to contracts with customers that are not substantially complete, i.e. less than 90% complete, as of October 1, 2018. The Company recognizes revenue as performance obligations are satisfied and control of the promised good and service is transferred to the customer. For Lump Sum and Unit Price contracts, revenue is ordinarily recognized over time as control is transferred to the customers by measuring the progress toward complete satisfaction of the performance obligation(s) using an input (i.e., “cost to cost”) method. For Cost Plus and Time and Material (“T&M”) contracts, revenue is ordinarily recognized over time as control is transferred to the customers by measuring the progress toward satisfaction of the performance obligation(s) using an output method. The Company does have certain service and maintenance contracts in which each customer purchase order is considered its own performance obligation recognized over time and would be recognized depending on the type of contract mentioned above. The Company also does certain T&M service work that is generally completed in a short duration and is recognized at a point in time. All contract costs, including those associated with affirmative claims, change orders and back charges, are recorded as incurred and revisions to estimated total costs are reflected as soon as the obligation to perform is determined. Contract costs consist of direct costs on contracts, including labor and materials, amounts payable to subcontractors and outside equipment providers, direct overhead costs and internal equipment expense (primarily depreciation, fuel, maintenance and repairs). The company recognizes revenue, but not profit, on certain uninstalled materials. Revenue on these uninstalled materials is recognized when the cost is incurred (when control is transferred), but the associated profit is not recognized until the end of the project. The costs of uninstalled materials will be tracked separately within the Company’s accounting software. Pre-contract and bond costs, if required, on projects are generally immaterial to the total value of the Company’s contracts and are expensed when incurred. Project mobilization costs are also generally immaterial and charged to project costs as incurred. As a practical expedient, the Company recognizes these incremental costs as an expense when incurred if the amortization period of the asset that the entity otherwise would have recognized is one year or less. For projects expected to last greater than one year, mobilization costs will be capitalized as incurred and amortized over the expected duration of the project. For these projects, mobilization costs will be tracked separately in the Company’s accounting software. This includes costs associated with setting up a project lot or lay-down yard, equipment, tool and supply transportation, temporary facilities and utilities and worker qualification and safety training. Contracts may require the Company to warranty that work is performed in accordance with the contract; however, the warranty is not priced separately, and the Company does not offer customers an option to purchase a warranty. As of September 30, 2019, the Company does not have a material amount of costs expensed that would otherwise be capitalized and amortized.
Principles of Consolidation	Principles of Consolidation The consolidated financial statements of Energy Services include the accounts of Energy Services and its wholly owned subsidiaries. All significant intercompany accounts and transactions have been eliminated in consolidation. Unless the context requires otherwise, references to Energy Services include Energy Services and its consolidated subsidiaries.
Use of Estimates and Assumptions	Use of Estimates and Assumptions The preparation of financial statements, in conformity with accounting principles generally accepted in the United States of America, 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 income and loss during the reporting period. Actual results could differ materially from those estimates.
Cash and Cash Equivalents	Cash and Cash Equivalents Energy Services considers all highly liquid investments purchased with an original maturity of three months or less to be cash equivalents.
Fair Value Measurements	Fair Value Measurements The Fair Value Measurements and Disclosures Topic of the Financial Accounting Standards Board (FASB) Accounting Standards Codification defines fair value, establishes a framework for measuring fair value in generally accepted accounting principles and expands disclosures about fair value measurements. Under the FASB’s authoritative guidance on fair value measurements, fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The Fair Value Measurements Topic of the FASB Accounting Standards Codification establishes a three-level hierarchy for fair value measurements based upon the transparency of inputs to the valuation of an asset or liability as of the measurement date. As noted above, there is a three-level valuation hierarchy for disclosure of fair value measurements. The valuation hierarchy is based upon the transparency of inputs to the valuation of an asset or liability as of the measurement date. The three levels are defined as follows: Level 1 — Quoted prices for identical assets and liabilities traded in active exchange markets, such as the New York Stock Exchange. Level 2 — Observable inputs other than Level 1 including quoted prices for similar assets or liabilities, quoted prices in less active markets, or other observable inputs that can be corroborated by observable market data. Level 2 also includes derivative contracts whose value is determined using a pricing model with observable market inputs or can be derived principally from or corroborated by observable market data. Level 3 — Unobservable inputs supported by little or no market activity for financial instruments whose value is determined using pricing models, discounted cash flow methodologies, or similar techniques, as well as instruments for which the determination of fair value requires significant management judgment or estimation; also includes observable inputs for nonbinding single dealer quotes not corroborated by observable market data. A financial instrument’s categorization within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement. The carrying amount for borrowings under the Company’s revolving credit facility approximates fair value because of the variable market interest rate charged to the Company for these borrowings. The fair value of the Company’s long term fixed-rate debt to unrelated parties was estimated using a discounted cash flow analysis and a yield rate that was estimated based on the borrowing rates currently available to the Company for bank loans with similar terms and maturities. The fair value of the aggregate principal amount of the Company’s fixed-rate debt of $16.0 million at September 30, 2019 was $16.0 million. The fair value of the aggregate principal amount of the Company’s fixed-rate debt of $10.3 million at September 30, 2018 was $10.2 million. All receivables and payables are carried at net realizable value which approximates fair value because of their short duration to maturity.
Accounts Receivable and Allowance for Doubtful Accounts	Accounts Receivable and Allowance for Doubtful Accounts The Company’s accounts receivable consists of amounts that have billed to customers. Collateral is generally not required. A majority of the Company’s contracts have monthly billing terms and payment terms within 30 to 45 days after invoices have been issued. The Company attempts to negotiate two-week billing terms and 15-day payment terms on larger projects. The timing of billings to customers may generate contract assets or contract liabilities. Certain construction contracts include retention provisions to provide assurance to our customers that we will perform in accordance with the contract terms and are therefore not considered a financing benefit. The balances billed but not paid by customers pursuant to these provisions generally become due upon completion and acceptance of the project work or products by the customer. We have determined there are no significant financing components in our contracts for the year ended September 20, 2019. Retainage billed but not paid pursuant to contract provisions will be due upon completion of the contracts. Based on the Company’s experience management considers all amounts classified as retainage receivable to be collectible. All retainage receivable amounts are expected to be collected within the next fiscal year. The Company provides an allowance for doubtful accounts when collection of an account or note receivable is considered doubtful, and receivables are written off against the allowance when deemed uncollectible. Inherent in the assessment of the allowance for doubtful accounts are certain judgments and estimates including, among others, the customer’s access to capital, the customer’s willingness or ability to pay, general economic conditions and the ongoing relationship with the customer.
Property and Equipment	Property and Equipment Property and equipment are recorded at cost. Costs which extend the useful lives or increase the productivity of the assets are capitalized, while normal repairs and maintenance that do not extend the useful life or increase productivity of the asset are expensed as incurred. Property and equipment are depreciated principally on the straight-line method over the estimated useful lives of the assets: buildings 39 years; operating equipment and vehicles 5-7 years; and office equipment, furniture and fixtures 5-7 years.
Impairment of Long-Lived Assets	Impairment of Long-Lived Assets A long-lived asset shall be tested for recoverability whenever events or changes in circumstances indicate that its carrying amount may not be recoverable. If an evaluation is required, the estimated future undiscounted cash flows associated with the asset would be compared to the asset’s carrying amount to determine if a write-down to market value is required.
Claims	Claims Claims are amounts in excess of the agreed contract price that a contractor seeks to collect from customers or others for customer-caused delays, errors in specifications and designs, contract terminations, change orders in dispute or unapproved as to both scope and price, or other causes of unanticipated additional costs. The Company records revenue on claims that have a high probability of success. Revenue from a claim is recorded only to the extent that contract costs relating to the claim have been incurred.
Self-Insurance	Self -Insurance The Company has its workers compensation, general liability and auto insurance through a captive insurance company. While the Company believes that this arrangement has been very beneficial in reducing and stabilizing insurance costs the Company does have to maintain a surety deposit to guarantee payments of premiums. The surety deposit had a balance of $1.9 million as of September 30, 2019, which is in “Prepaid expenses and other” on the Company’s Consolidated Balance Sheets. The surety deposit had a balance of $2.1 million as of September 30, 2018. Should the captive experience severe losses over an extended period, it could have a detrimental effect on the Company.
Advertising	Advertising All advertising costs are expensed as incurred. Total advertising expense was $71,000 and $101,000 for the years ended September 30, 2019 and 2018, respectively.
Stock Compensation Plans	Stock Compensation Plans The Company has issued restricted stock under its Long-Term Incentive Plan; however, there were no issuances in fiscal years 2019 or 2018. The Company accounts for its equity-based compensation as prescribed by U.S. Generally Accepted Accounting Principles for share-based payments. The Company has adopted a fair value-based method of accounting for employee equity-based plans, whereby compensation cost is measured at the grant date based on the fair value of the award and is recognized over the service period, which is usually the vesting period. As a result, compensation expense relating to stock compensation plans will be reflected in net income as part of “Salaries and employee benefits” on the Consolidated Statements of Income.
Income Taxes	Income Taxes The Company and all subsidiaries file a consolidated federal and various state income tax returns on a fiscal year basis. With few exceptions, the Company is no longer subject to U.S. federal, state, or local income tax examinations for years ending prior to September 30, 2016. The Company follows the liability method of accounting for income taxes in accordance with U.S. Generally Accepted Accounting Principles. Under this method, deferred tax assets and liabilities are recorded for future tax consequences of temporary differences between financial reporting and tax bases of assets and liabilities, and are measured using the enacted tax rates and laws that are expected to be in effect when the underlying assets or liabilities are recovered or settled. A valuation allowance is established to reduce deferred tax assets if it is more likely than not that a deferred tax asset will not be realized. U.S. GAAP also prescribes a comprehensive model for how companies should recognize, measure, present and disclose in their financial statements uncertain tax positions taken or to be taken on a tax return. This evaluation is a two-step process. First, the recognition process determines if it is more likely than not that a tax position will be sustained based on the merits of the tax position upon examination by the appropriate taxing authority. Second, a measurement process is calculated to determine the amount of benefit/expense to recognize in the financial statements if a tax position meets the more likely than not recognition threshold. The tax position is measured at the greatest amount of benefit/expense that is more likely than not of being realized upon ultimate settlement. Any interest and penalty related to the unrecognized tax benefits, as the result of recognition of tax obligations resulting from uncertain tax positions, are included in the provision for income taxes. The Company had not recognized any uncertain tax positions at September 30, 2019.
Earnings Per Common Share	Earnings Per Common Share Basic earnings per share is computed using the weighted average number of common shares outstanding during the year, and diluted earnings per share is computed using the weighted average number of common shares outstanding during the year adjusted for all potentially dilutive common stock equivalents, except in cases where the effect of the common stock equivalent would be anti-dilutive.
Collective Bargaining Agreements	Collective Bargaining Agreements Certain Energy Services subsidiaries are party to collective bargaining agreements with unions representing certain of their employees. The agreements require such subsidiaries to pay specified wages and provide certain benefits to the union employees. These agreements expire at various times and have typically been renegotiated and renewed on terms that are similar to the ones contained in the expiring agreements. Under certain collective bargaining agreements, the applicable Energy Services subsidiary is required to make contributions to multi-employer pension plans. If the subsidiary were to cease participation in one or more of these plans, a liability could potentially be assessed related to any underfunding of these plans. The amount of such assessment, were one to be made, cannot be reasonably estimated.
Litigation Costs	Litigation Costs The Company reserves when it is probable that a liability has been incurred and the amount of loss can be reasonably estimated. Litigation costs are expensed as incurred.
New Accounting Pronouncements	New Accounting Pronouncements In February 2016, the FASB issued ASU 2016‑02, “Leases (Topic 842)”. ASU 2016‑02 is effective for public business entities for fiscal years beginning after December 15, 2018 including interim periods within those fiscal years. Among other things, lessees will be required to recognize the following for all leases (except for short-term leases) at the commencement date: a lease liability, which is a lessee’s obligation to make lease payments arising from a lease, measured on a discounted basis; and a right-of-use asset, which is an asset that represents the lessee’s right to use, or control the use of, a specified asset for the lease term. The Company expects that the adoption of ASU 2016‑02 will not have a material impact on its financial statements or disclosure. Subsequent Events Management has evaluated subsequent events through December 20, 2019, the date which the financial statements were available for issue. There have been no material events noted during the period that would either impact the results reflected in the report or the Company’s results going forward. On December 11, 2019, the Company declared a $0.05 special dividend to be paid on December 31, 2019 for stockholders as of December 23, 2019. The payment of cash dividends in the future will be contingent upon our revenues and earnings, if any, capital requirements and general financial condition. The payment of any future dividends will be within the discretion of our board of directors. Subsequent to September 30, 2019, the Company had purchased 25,297 shares of common stock as of December 1, 2019, at a purchase value of $20,723.
Subsequent Events	Subsequent Events Management has evaluated subsequent events through December 20, 2019, the date which the financial statements were available for issue. There have been no material events noted during the period that would either impact the results reflected in the report or the Company’s results going forward. On December 11, 2019, the Company declared a $0.05 special dividend to be paid on December 31, 2019 for stockholders as of December 23, 2019. The payment of cash dividends in the future will be contingent upon our revenues and earnings, if any, capital requirements and general financial condition. The payment of any future dividends will be within the discretion of our board of directors. Subsequent to September 30, 2019, the Company had purchased 25,297 shares of common stock as of December 1, 2019, at a purchase value of $20,723.

DISAGGREGATION OF REVENUE (Tabl

DISAGGREGATION OF REVENUE (Tables)	12 Months Ended
	Sep. 30, 2019
DISAGGREGATION OF REVENUE
Schedule of disaggregation of revenue	Twelve Months Ended September 30, 2019 Petroleum & Water, Sewer and Electrical and Total revenue Gas Other Mechanical from contracts Lump sum contracts $ — $ — $ 21,305,113 $ 21,305,113 Unit price contracts 87,105,923 3,718,956 — 90,824,879 Cost plus and T&M contracts 3,138,455 407,221 15,286,061 18,831,737 Revenue from contracts in progress $ 90,244,378 $ 4,126,177 $ 36,591,174 $ 130,961,729 Lump sum contracts $ — $ — $ 13,643,771 $ 13,643,771 Unit price contracts 13,343,837 7,314,400 — 20,658,237 Cost plus and T&M contracts 1,919,411 692,831 6,665,176 9,277,418 Revenue from completed contracts $ 15,263,248 $ 8,007,231 $ 20,308,947 $ 43,579,426 Total revenue from contracts $ 105,507,626 $ 12,133,408 $ 56,900,121 $ 174,541,155 Earned over time $ 105,507,626 $ 12,133,408 $ 55,727,239 $ 173,368,273 Earned at point in time — — 1,172,882 1,172,882 Total revenue from contracts $ 105,507,626 $ 12,133,408 $ 56,900,121 $ 174,541,155 Twelve Months Ended September 30, 2018 Petroleum & Water, Sewer and Electrical and Total revenue Gas Other Mechanical from contracts Lump sum contracts $ — $ — $ 21,309,454 $ 21,309,454 Unit price contracts 53,615,010 5,393,359 — 59,008,369 Cost plus and T&M contracts 6,999,890 561,538 16,729,671 24,291,099 Revenue from contracts in progress $ 60,614,900 $ 5,954,897 $ 38,039,125 $ 104,608,922 Lump sum contracts $ — $ — $ 14,619,398 $ 14,619,398 Unit price contracts 9,070,997 3,190,889 — 12,261,886 Cost plus and T&M contracts — 96,960 3,895,605 3,992,565 Revenue from completed contracts $ 9,070,997 $ 3,287,849 $ 18,515,003 $ 30,873,849 Total revenue from contracts $ 69,685,897 $ 9,242,746 $ 56,554,128 $ 135,482,771 Earned over time $ 69,685,897 $ 9,242,746 $ 55,454,524 $ 134,383,167 Earned at point in time — — 1,099,604 1,099,604 Total revenue from contracts $ 69,685,897 $ 9,242,746 $ 56,554,128 $ 135,482,771

CONTRACT BALANCES (Tables)

CONTRACT BALANCES (Tables)	12 Months Ended
	Sep. 30, 2019
CONTRACT BALANCES
Schedule of accounts receivable, net of allowance for doubtful accounts, contract assets and contract liabilities	September 30, 2018 September 2019 Change Accounts receivable-trade, net of allowance for doubtful accounts $ 22,143,670 $ 21,608,312 $ (535,358) Contract assets Cost and estimated eanings in excess of billings $ 5,353,375 $ 6,659,707 $ 1,306,332 Contract liabilites Billings in excess of cost and estimated earnings $ 3,261,201 $ 3,455,288 $ 194,087

ALLOWANCE FOR DOUBTFUL ACCOUN_2

ALLOWANCE FOR DOUBTFUL ACCOUNTS (Tables)	12 Months Ended
	Sep. 30, 2019
ALLOWANCE FOR DOUBTFUL ACCOUNTS
Schedule of allowance for doubtful accounts receivable	Year Ended September 30, 2019 2018 Balance at beginning of year $ 83,885 $ 108,200 Charged to expense — — Deductions for uncollectible receivables written off, net of recoveries (13,575) (24,315) Balance at end of year $ 70,310 $ 83,885

UNCOMPLETED CONTRACTS (Tables)

UNCOMPLETED CONTRACTS (Tables)	12 Months Ended
	Sep. 30, 2019
UNCOMPLETED CONTRACTS
Schedule of costs, estimated earnings and billings on uncompleted contracts	Year Ended September 30, 2019 2018 Costs incurred on contracts in progress $ 163,768,655 $ 154,793,209 Estimated earnings, net of estimated losses 18,215,388 11,687,859 181,984,043 166,481,068 Less billings to date 178,779,624 164,388,894 $ 3,204,419 $ 2,092,174 Costs and estimated earnings in excess of billed on uncompleted contracts $ 6,659,707 $ 5,353,375 Less billings in excess of costs and estimated earnings on uncompleted contracts 3,455,288 3,261,201 $ 3,204,419 $ 2,092,174

PROPERTY, PLANT AND EQUIPMENT (

PROPERTY, PLANT AND EQUIPMENT (Tables)	12 Months Ended
	Sep. 30, 2019
PROPERTY, PLANT AND EQUIPMENT
Schedule of property, plant and equipment	Year Ended September 30, 2019 2018 Land $ 2,464,512 $ 2,333,106 Buildings and leasehold improvements 5,348,851 4,761,019 Operating equipment and vehicles 42,703,353 40,434,150 Office equipment, furniture and fixtures 751,642 747,330 Assets not yet in service — 2,822 51,268,358 48,278,427 Less accumulated depreciation 34,453,157 31,462,438 Property, plant and equipment, net $ 16,815,201 $ 16,815,989

SHORT-TERM AND LONG-TERM DEBT (

SHORT-TERM AND LONG-TERM DEBT (Tables)	12 Months Ended
	Sep. 30, 2019
SHORT-TERM AND LONG-TERM DEBT
Schedule of summary of short-term and long-term debt	2019 2018 Line of credit payable to bank, monthly interest at 5.50%, final payment due by April 28, 2020. $ 3,500,000 $ 5,500,000 Notes payable to finance companies, due in monthly installments totaling $83,042 including interest ranging from 0.00% to 6.03%, final payments due October 2019 through August 2026, secured by equipment. 1,691,991 1,332,993 Note payable to finance company for insurance premiums financed, due in monthly installments totaling $267,677 in FY 2019 and $288,581 in FY 2018, including interest rate at 2.77%, final payment due November 2019. 525,710 569,247 Notes payable to bank, due in monthly installments totaling $7,799, including interest at 4.82%, final payment due November 2034 secured by building and property. 1,012,126 1,054,248 Notes payable to bank, due in monthly installments totaling $11,828, including interest at 5.00%, final payment due November 2025 secured by building and property. 751,987 851,768 Notes payable to bank, due in monthly installments totaling $172,473, including interest at 6.50%, final payment due February 2019 secured by equipment. — 702,097 Notes payable to bank, due in monthly installments totaling $30,914, including interest at 5.00%, final payment due February 2019 secured by equipment. — 154,116 Notes payable to bank, due in monthly installments totaling $98,865, including interest at 4.99%, final payment due September 2022 secured by equipment. 3,040,600 4,045,025 Notes payable to bank, due in monthly installments totaling $46,482, including interest at 5.00%, final payment due September 2021 secured by equipment. 1,011,160 1,549,651 Notes payable to bank, due in monthly installments totaling $191,012, including interest at 5.50%, final payment due September 2021 secured by equipment. 7,920,005 — Total debt 19,453,579 15,759,145 Less current maturities 8,429,283 9,290,515 Total long term debt $ 11,024,296 $ 6,468,630
Schedule of maturities of long-term debt	2020 $ 8,429,283 2021 3,977,300 2022 3,286,263 2023 2,419,847 2024 273,646 Thereafter 1,067,240 $ 19,453,579

INCOME TAXES (Tables)

INCOME TAXES (Tables)	12 Months Ended
	Sep. 30, 2019
INCOME TAXES
Schedule of components of income taxes	Year Ended September 30, 2019 2018 Federal Current $ 289,476 $ 836,977 Deferred 466,009 (333,740) Total 755,485 503,237 State Current 81,647 212,524 Deferred 131,439 194,273 Total 213,086 406,797 Total income tax expense $ 968,571 $ 910,034
Schedule of provision for income taxes differs from the amount computed by applying the federal statutory rate on income from operations	Year Ended September 30, 2019 2018 Statutory rate 21.00 % 24.50 % State income taxes 6.00 % 8.99 % Meals and other 5.70 % 11.84 % Rate change effect on deferred taxes 0.00 % (18.71) % Effective tax rate 32.70 % 26.62 %
Schedule of income tax effects to deferred tax assets and liabilities	Year Ended September 30, 2019 2018 Deferred income tax liabilities Long-term Property and equipment $ 2,539,639 $ 2,023,641 Other (19,805) 4,639 Total deferred income tax liabilities 2,519,834 2,028,280 Deferred income tax assets Long-term Other 594,011 699,905 Total deferred income tax assets 594,011 699,905 Total net deferred income tax liabilities $ 1,925,823 $ 1,328,375

EARNINGS PER SHARE (Tables)

EARNINGS PER SHARE (Tables)	12 Months Ended
	Sep. 30, 2019
EARNINGS PER SHARE
Schedule to compute earnings per share	Twelve Months Ended Twelve Months Ended September 30, September 30, 2019 2018 Net income $ 1,992,910 $ 2,509,023 Dividends on preferred stock 309,000 309,000 Income available to common shareholders $ 1,683,910 $ 2,200,023 Weighted average shares outstanding 14,064,871 14,234,571 Weighted average shares outstanding-diluted 17,498,204 17,667,904 Earnings per share available to common shareholders $ 0.120 $ 0.155 Earnings per share available to common shareholders-diluted $ 0.096 $ 0.125

LEASE OBLIGATIONS (Tables)

LEASE OBLIGATIONS (Tables)	12 Months Ended
	Sep. 30, 2019
LEASE OBLIGATIONS
Schedule of future minimum lease payments under operating leases	The future minimum lease payments under operating leases as of September 30, 2019, are as follows: 2020 $ 62,260 $ 62,260

RETIREMENT AND EMPLOYEE BENEF_2

RETIREMENT AND EMPLOYEE BENEFIT PLANS (Tables)	12 Months Ended
	Sep. 30, 2019
RETIREMENT AND EMPLOYEE BENEFIT PLANS
Schedule of multi-employer defined benefit pension plans	Contibutions of Pension Protection Act ("PPA") Energy Services of America Certified Zone Status (1) FIP/RP Status Companies Expiration Date of EIN/Pension Pending/ Surcharge Collective Bargaining Pension Fund Plan Number 2018 2017 Implemented (2) 2018 2017 2016 Imposed Agreement Central States, Southeast and Southwest Areas Pension Fund 36-6044243/001 Red Red Implemented $ 189,644 $ — $ — no Various National Automatic Sprinkler Industry Pension Fund 52-6054620/001 Red Red Implemented 131,141 99,731 — no Various Iron Workers District Council of Southern Ohio &Vicinity Pension Trust 31-6038516/001 Yellow Yellow Implemented 122,683 57,960 — no Various Carpenters Pension Fund of WV 55-6027998/001 Red Red Implemented 746,743 444,455 — no Various Plumbers & Pipefitters National Pension Fund 52-6152779/001 Yellow Yellow Implemented 786,940 1,929,939 1,034,996 no Various Sheet Metal Workers' National Pension Fund 52-6112463/001 Yellow Yellow Implemented 125,982 153,542 182,991 no Various Sheet Metal Workers Local Pension Fund 34-6666753/001 Red Red Implemented 71,143 11,483 — no Various Plumbers and Pipefitters Local 152 Pension Fund 55-6029095/001 Red Red Implemented 19,511 — — no Various All Other Green Green 6,313,624 4,087,927 6,152,291 no Various $ 8,507,411 $ 6,785,037 $ 7,370,278 (1) The most recent PPA zone status available in 2019 and 2018 is the the plan's year-end during 2018 and 2017, respectively. The zone status is based on information that we received from the plan and is certified by the plan's actuary. Among other factors, plans in the red zone are generally less than 65 percent funded, plans in the orange zone are less than 80 percent funded and have an Accumulated Funding Deficiency in the current year or projected into the next six years, plans in the yellow zone are less than 80 percent funded, and plans in the green zone are at least 80 percent funded. (2) Indicates whether the plan has a financial improvement plan ("FIP") or a rehabilitation plan ("RP") which is either pending or has been implemented.

QUARTERLY FINANCIAL DATA (UNA_2

QUARTERLY FINANCIAL DATA (UNAUDITED) (Tables)	12 Months Ended
	Sep. 30, 2019
QUARTERLY FINANCIAL DATA (UNAUDITED)
Schedule of quarterly financial information	2019 First Quarter Second Quarter Third Quarter Fourth Quarter Total Revenue $ 49,114,139 $ 46,955,444 $ 40,187,978 $ 38,283,594 $ 174,541,155 Operating income (loss) 1,078,454 (1,420,888) 1,229,693 2,935,153 3,822,412 Net income (loss) 631,384 (1,124,458) 485,757 2,000,227 1,992,910 Dividends on preferred stock 77,250 77,250 77,250 77,250 309,000 Net income (loss) available to common shareholders $ 554,134 $ (1,201,708) $ 408,507 $ 1,922,977 $ 1,683,910 Weighted-basic shares outstanding 14,135,900 14,060,456 13,985,579 13,934,720 14,064,871 Weighted-diluted shares outstanding 17,569,233 14,060,456 17,418,912 17,368,053 17,498,204 Earnings (loss) per share available to common shareholders $ 0.039 $ (0.085) $ 0.029 $ 0.138 $ 0.120 Earnings (loss) per share-diluted available to common shareholders $ 0.032 $ (0.085) $ 0.023 $ 0.111 $ 0.096 2018 First Quarter Second Quarter Third Quarter Fourth Quarter Total Revenue $ 32,547,603 $ 23,093,033 $ 29,549,659 $ 50,292,476 $ 135,482,771 Operating income (loss) (33,637) (900,258) 1,610,087 3,244,880 3,921,072 Net income (loss) 148,500 (947,575) 1,096,267 2,211,831 2,509,023 Dividends on preferred stock 77,250 77,250 77,250 77,250 309,000 Net income (loss) available to common shareholders $ 71,250 $ (1,024,825) $ 1,019,017 $ 2,134,581 $ 2,200,023 Weighted-basic shares outstanding 14,239,836 14,239,836 14,239,836 14,218,949 14,234,571 Weighted-diluted shares outstanding 17,673,169 14,239,836 17,673,169 17,652,282 17,667,904 Earnings (loss) per share available to common shareholders $ 0.005 $ (0.072) $ 0.072 $ 0.150 $ 0.155 Earnings (loss) per share -diluted available to common shareholders $ 0.004 $ (0.072) $ 0.058 $ 0.121 $ 0.125

CONDENSED PARENT COMPANY ONLY_2

CONDENSED PARENT COMPANY ONLY FINANCIAL STATEMENTS (Tables)	12 Months Ended
	Sep. 30, 2019
CONDENSED PARENT COMPANY ONLY FINANCIAL STATEMENTS
Schedule of balance sheet	ENERGY SERVICES OF AMERICA CORPORATION (Parent Only) BALANCE SHEETS As of September 30, 2019 and 2018 2019 2018 Assets Current assets Cash and cash equivalents $ 59,831 $ 499,750 Other receivables (307) (307) Prepaid expenses and other 2,412,348 3,906,287 Total current assets 2,471,872 4,405,730 Property, plant and equipment, at cost 248,402 248,402 less accumulated depreciation (230,628) (226,285) 17,774 22,117 Due from subsidiaries 8,343,282 4,531,173 Deferred tax asset 218,093 329,150 Investment in subsidiaries 30,530,562 27,466,387 Total assets $ 41,581,583 $ 36,754,557 Liabilities and shareholders' equity Current liabilities Current maturities of long-term debt $ 3,504,301 $ 2,459,680 Lines of credit and short term borrowings 4,025,710 6,069,247 Accounts payable 68,921 33,839 Accrued expenses and other current liabilities 98,843 67,767 Total current liabilities 7,697,775 8,630,533 Long-term debt, less current maturities 9,219,451 4,842,977 Total liabilities 16,917,226 13,473,510 Shareholders' equity Preferred stock, $.0001 par value Authorized 1,000,000 shares,206 issued at September 30, 2019 and 2018 — — Common stock, $.0001 par value Authorized 50,000,000 shares 14,839,836 issued and 13,924,789 outstanding at September 30, 2019 and 14,239,836 issued and 14,194,517 outstanding at September 30, 2018 1,484 1,484 Treasury stock, 915,047 shares at September 30, 2019 and 645,319 shares at September 30, 2018 (91) (65) Additional paid in capital 60,938,896 61,239,470 Retained earnings (deficit) (36,275,932) (37,959,842) Total shareholders' equity 24,664,357 23,281,047 Total liabilities and shareholders' equity $ 41,581,583 $ 36,754,557
Schedule of statement of income	ENERGY SERVICES OF AMERICA CORPORATION (Parent Only) STATEMENTS OF INCOME For the years ended September 30, 2019 and 2018 2019 2018 Selling and administrative expenses $ 1,399,725 $ 1,226,854 Net loss from operations before taxes (1,399,725) (1,226,854) Other nonoperating income (expense) (1,043) 6,239 Interest income 58,023 132,281 Interest expense (960,068) (811,801) Interest allocation to subsidiaries 885,316 763,328 Net loss before tax (1,417,497) (1,136,807) Income tax benefit (346,232) (259,327) Net loss from parent (1,071,265) (877,480) Equity in undistributed income income of subsidiaries 3,064,175 3,386,503 Dividends on preferred stock (309,000) (309,000) Net income available to common shareholders $ 1,683,910 $ 2,200,023 Weighted average shares outstanding- basic 14,064,871 14,234,571 Weighted average shares-diluted 17,498,204 17,667,904 Net earnings per share-basic available to common shareholders $ 0.120 $ 0.155 Net earnings per share-diluted available to common shareholders $ 0.096 $ 0.125
Schedule of consolidated statement of cash flow	ENERGY SERVICES OF AMERICA CORPORATION (Parent Only) CONSOLIDATED STATEMENTS OF CASH FLOWS For the years ended September 30, 2019 and 2018 2019 2018 Cash flows form operating activities: Net income $ 1,992,910 $ 2,509,023 Adjustments to reconcile net income to net cash (used in) provided by operating activities Provision for deferred taxes 111,057 397,374 Depreciation expense 4,343 5,552 Equity in undistributed income of subsidiaries (3,064,175) (3,386,503) Advances (to) from subsidiaries (3,812,109) 7,073,607 Changes in: Decrease in prepaid expenses 1,493,939 107,045 Decrease in other receivable — 307 Increase (decrease) in accounts payable 35,082 (29,519) Increase (decrease) in accrued expenses and other current liabilities 31,076 (97,176) Net cash (used in) provided by operating activities (3,207,877) 6,579,710 Cash flows from investing activities: Investment in property & equipment — — Net cash used in investing activities — — Cash flows from financing activities: Borrowings on lines of credit and short-term debt, net of (repayments) 7,956,463 (3,363,721) Principal payments on long term debt (4,578,905) (3,825,589) Preferred dividends paid (309,000) (309,000) Treasury stock purchased by company (300,600) (49,795) Net cash provided by (used in) financing activities 2,767,958 (7,548,105) Decrease in cash and cash equivalents (439,919) (968,395) Cash beginning of period 499,750 1,468,145 Cash end of period $ 59,831 $ 499,750 Supplemental schedule of noncash investing and financing activities: Insurance premiums financed $ 3,159,083 $ 3,130,859 Accrued dividends on preferred stock $ 77,250 $ 77,250 Line of credit refinanced to long-term debt $ 10,000,000 $ — Supplemental disclosures of cash flows information: Cash paid during the year for: Interest $ 1,064,222 $ 811,801 Income taxes $ 798,430 $ 346,065

SUMMARY OF SIGNIFICANT ACCOUN_3

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Revenue Recognition and Fair Value Measurements (Details) - USD ($) $ in Millions	Oct. 01, 2018	Sep. 30, 2019	Sep. 30, 2018
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Percentage compellation of contracts with customers related to topic 606	90.00%
Aggregate principal amount of fixed-rate debt		$ 16	$ 10.3
Fair value of aggregate principal amount of debt		$ 16	$ 10.2

SUMMARY OF SIGNIFICANT ACCOUN_4

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Accounts Receivable and Allowance for Doubtful Accounts and Property and Equipment (Details)	12 Months Ended
	Sep. 30, 2019
Buildings
Property, Plant and Equipment [Line Items]
Estimated useful lives	39 years
Operating equipment and vehicles
Property, Plant and Equipment [Line Items]
Estimated useful lives	5-7 years
Office equipment, furniture and fixtures
Property, Plant and Equipment [Line Items]
Estimated useful lives	5-7 years
Minimum
Property, Plant and Equipment [Line Items]
Billing and payment term	30 days
Maximum
Property, Plant and Equipment [Line Items]
Billing and payment term	45 days

SUMMARY OF SIGNIFICANT ACCOUN_5

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Self-Insurance, Advertising and Subsequent events (Details) - USD ($)	12 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Dec. 11, 2019	Dec. 01, 2019
Share-Based Compensation Arrangement By Share-Based Payment Award [Line Items]
Restricted account balance	$ 1,900,000	$ 2,100,000
Advertising expense	$ 71,000	$ 101,000
Common stock, shares issued	14,839,836	14,839,836
Value of common stock	$ 1,484	$ 1,484
Subsequent event
Share-Based Compensation Arrangement By Share-Based Payment Award [Line Items]
Special dividend declared (in dollars per share)			$ 0.05
Employee Stock Purchase Plan | Subsequent event
Share-Based Compensation Arrangement By Share-Based Payment Award [Line Items]
Common stock, shares issued				25,297
Value of common stock				$ 20,723

DISAGGREGATION OF REVENUE (Deta

DISAGGREGATION OF REVENUE (Details) - USD ($)	12 Months Ended
	Sep. 30, 2019	Sep. 30, 2018
Disaggregation of Revenue [Line Items]
Revenue from contracts in progress	$ 130,961,729	$ 104,608,922
Revenue from completed contracts	43,579,426	30,873,849
Total revenue from contracts	174,541,155	135,482,771
Earned over time
Disaggregation of Revenue [Line Items]
Total revenue from contracts	173,368,273	134,383,167
Earned at point in time
Disaggregation of Revenue [Line Items]
Total revenue from contracts	1,172,882	1,099,604
Lump sum contracts
Disaggregation of Revenue [Line Items]
Revenue from contracts in progress	21,305,113	21,309,454
Revenue from completed contracts	13,643,771	14,619,398
Unit price contracts
Disaggregation of Revenue [Line Items]
Revenue from contracts in progress	90,824,879	59,008,369
Revenue from completed contracts	20,658,237	12,261,886
Cost plus and T&M contracts
Disaggregation of Revenue [Line Items]
Revenue from contracts in progress	18,831,737	24,291,099
Revenue from completed contracts	9,277,418	3,992,565
Petroleum and Gas
Disaggregation of Revenue [Line Items]
Revenue from contracts in progress	90,244,378	60,614,900
Revenue from completed contracts	15,263,248	9,070,997
Total revenue from contracts	105,507,626	69,685,897
Petroleum and Gas | Earned over time
Disaggregation of Revenue [Line Items]
Total revenue from contracts	105,507,626	69,685,897
Petroleum and Gas | Earned at point in time
Disaggregation of Revenue [Line Items]
Total revenue from contracts	0	0
Petroleum and Gas | Lump sum contracts
Disaggregation of Revenue [Line Items]
Revenue from contracts in progress	0	0
Revenue from completed contracts	0	0
Petroleum and Gas | Unit price contracts
Disaggregation of Revenue [Line Items]
Revenue from contracts in progress	87,105,923	53,615,010
Revenue from completed contracts	13,343,837	9,070,997
Petroleum and Gas | Cost plus and T&M contracts
Disaggregation of Revenue [Line Items]
Revenue from contracts in progress	3,138,455	6,999,890
Revenue from completed contracts	1,919,411	0
Water, Sewer and Other
Disaggregation of Revenue [Line Items]
Revenue from contracts in progress	4,126,177	5,954,897
Revenue from completed contracts	8,007,231	3,287,849
Total revenue from contracts	12,133,408	9,242,746
Water, Sewer and Other | Earned over time
Disaggregation of Revenue [Line Items]
Total revenue from contracts	12,133,408	9,242,746
Water, Sewer and Other | Earned at point in time
Disaggregation of Revenue [Line Items]
Total revenue from contracts	0	0
Water, Sewer and Other | Lump sum contracts
Disaggregation of Revenue [Line Items]
Revenue from contracts in progress	0	0
Revenue from completed contracts	0	0
Water, Sewer and Other | Unit price contracts
Disaggregation of Revenue [Line Items]
Revenue from contracts in progress	3,718,956	5,393,359
Revenue from completed contracts	7,314,400	3,190,889
Water, Sewer and Other | Cost plus and T&M contracts
Disaggregation of Revenue [Line Items]
Revenue from contracts in progress	407,221	561,538
Revenue from completed contracts	692,831	96,960
Electrical and Mechanical
Disaggregation of Revenue [Line Items]
Revenue from contracts in progress	36,591,174	38,039,125
Revenue from completed contracts	20,308,947	18,515,003
Total revenue from contracts	56,900,121	56,554,128
Electrical and Mechanical | Earned over time
Disaggregation of Revenue [Line Items]
Total revenue from contracts	55,727,239	55,454,524
Electrical and Mechanical | Earned at point in time
Disaggregation of Revenue [Line Items]
Total revenue from contracts	1,172,882	1,099,604
Electrical and Mechanical | Lump sum contracts
Disaggregation of Revenue [Line Items]
Revenue from contracts in progress	21,305,113	21,309,454
Revenue from completed contracts	13,643,771	14,619,398
Electrical and Mechanical | Unit price contracts
Disaggregation of Revenue [Line Items]
Revenue from contracts in progress	0	0
Revenue from completed contracts	0	0
Electrical and Mechanical | Cost plus and T&M contracts
Disaggregation of Revenue [Line Items]
Revenue from contracts in progress	15,286,061	16,729,671
Revenue from completed contracts	$ 6,665,176	$ 3,895,605

CONTRACT BALANCES (Details)

CONTRACT BALANCES (Details) - USD ($)	12 Months Ended
	Sep. 30, 2019	Sep. 30, 2018
CONTRACT BALANCES
Accounts receivable-trade, net of allowance for doubtful accounts	$ 21,608,312	$ 22,143,670
Change in accounts receivable-trade	(535,358)	(888,402)
Contract assets
Cost and estimated earnings in excess of billings	6,659,707	5,353,375
Change in cost and estimated earnings in excess of billings	1,306,332	2,491
Contract liabilities
Billings in excess of cost and estimated earnings	3,455,288	3,261,201
Change in billings in excess of cost and estimated earnings	$ 194,087	$ 1,087,236

CONTRACT BALANCES - Additional

CONTRACT BALANCES - Additional Information (Details) - USD ($)	12 Months Ended
	Sep. 30, 2019	Sep. 30, 2018
CONTRACT BALANCES
Accounts receivable-trade, net of allowance for doubtful accounts	$ 21,608,312	$ 22,143,670
Decrease in contracts receivable	(535,358)	(888,402)
Contract assets	6,659,707	5,353,375
Increase in contract assets	1,306,332	2,491
Contract liabilities	3,455,288	3,261,201
Increase in contract liabilities	194,087	$ 1,087,236
Recognized revenue included in contract liability	$ 2,000,000

PERFORMANCE OBLIGATIONS (Detail

PERFORMANCE OBLIGATIONS (Details)	12 Months Ended
	Sep. 30, 2019USD ($)
PERFORMANCE OBLIGATIONS
Recognized revenue	$ 85,000
Amount of remaining unsatisfied performance obligations	$ 7,500,000

ALLOWANCE FOR DOUBTFUL ACCOUN_3

ALLOWANCE FOR DOUBTFUL ACCOUNTS (Details) - USD ($)	12 Months Ended
	Sep. 30, 2019	Sep. 30, 2018
Allowance for Doubtful Accounts Receivable [Roll Forward]
Balance at beginning of year	$ 83,885	$ 108,200
Charged to expense	0	0
Deductions for uncollectible receivables written off, net of recoveries	(13,575)	(24,315)
Balance at end of year	$ 70,310	$ 83,885

UNCOMPLETED CONTRACTS - Summary

UNCOMPLETED CONTRACTS - Summary of costs, estimated earnings, and billings on uncompleted contracts (Details) - USD ($)	Sep. 30, 2019	Sep. 30, 2018
UNCOMPLETED CONTRACTS
Costs incurred on contracts in progress	$ 163,768,655	$ 154,793,209
Estimated earnings, net of estimated losses	18,215,388	11,687,859
Costs of uncompleted contracts including net estimated earnings	181,984,043	166,481,068
Less billings to date	178,779,624	164,388,894
Unbilled contracts receivable	3,204,419	2,092,174
Costs and estimated earnings in excess of billed on uncompleted contracts	6,659,707	5,353,375
Less billings in excess of costs and estimated earnings on uncompleted contracts	3,455,288	3,261,201
Unbilled contracts receivable	$ 3,204,419	$ 2,092,174

PROPERTY, PLANT AND EQUIPMENT_2

PROPERTY, PLANT AND EQUIPMENT (Details) - USD ($)	Sep. 30, 2019	Sep. 30, 2018
Property, Plant and Equipment [Line Items]
Property, plant and equipment, at cost	$ 51,268,358	$ 48,278,427
Less accumulated depreciation	34,453,157	31,462,438
Total fixed assets	16,815,201	16,815,989
Land
Property, Plant and Equipment [Line Items]
Property, plant and equipment, at cost	2,464,512	2,333,106
Buildings and leasehold improvements
Property, Plant and Equipment [Line Items]
Property, plant and equipment, at cost	5,348,851	4,761,019
Operating equipment and vehicles
Property, Plant and Equipment [Line Items]
Property, plant and equipment, at cost	42,703,353	40,434,150
Office equipment, furniture and fixtures
Property, Plant and Equipment [Line Items]
Property, plant and equipment, at cost	$ 751,642	747,330
Assets not yet in service
Property, Plant and Equipment [Line Items]
Property, plant and equipment, at cost		$ 2,822

SHORT-TERM DEBT (Details)

SHORT-TERM DEBT (Details) - USD ($)	May 30, 2019	Mar. 21, 2018	Sep. 30, 2019	Sep. 30, 2018
Line of Credit Facility [Line Items]
Insurance policy amount			$ 3,200,000
Insurance policy premium outstanding			526,000
Maximum
Line of Credit Facility [Line Items]
Line of credit			11,500,000
Financing agreement "Operating Line of Credit (2018)"
Line of Credit Facility [Line Items]
Amount borrowed against the line of credit				$ 12,500,000
Financing agreement "Operating Line of Credit (2018)" | United Bank, Inc.
Line of Credit Facility [Line Items]
Line of credit		$ 15,000,000
Interest rate on the line of credit description		Wall Street Journal" Prime Rate (the index) with a floor of 4.99%
Interest rate on line of credit		4.99%
Financing agreement "Operating Line of Credit (2018)" | United Bank, Inc. | 12.5 million component
Line of Credit Facility [Line Items]
Line of credit		$ 12,500,000
Amount borrowed against the line of credit				5,500,000
Amount available to borrowing				7,000,000
Financing agreement "Operating Line of Credit (2018)" | United Bank, Inc. | 2.5 million component
Line of Credit Facility [Line Items]
Line of credit		$ 2,500,000
Financing agreement "Operating Line of Credit (2017)" | United Bank, Inc.
Line of Credit Facility [Line Items]
Repayments of lines of credit				$ 15,000,000
Financing agreement "Operating Line of Credit (2019)"
Line of Credit Facility [Line Items]
Line of credit	$ 10,000,000		3,500,000
Interest rate on the line of credit description	5.50%
Amount available to borrowing			$ 8,000,000
Additional Line Of Credit	$ 4,500,000
Financing agreement "Operating Line of Credit (2019)" | United Bank, Inc.
Line of Credit Facility [Line Items]
Percentage of eligible accounts receivable			70.00%
Amount of loan covenants			$ 12,500,000
Minimum tangible net worth			$ 19,000,000
Minimum traditional debt service coverage ratio			1.25x
Minimum current ratio			1.50x
Maximum Debt To Tangible Net Worth Ratio To Be Measured Semi Annually			2.0x
Amount of minimum tangible net worth			$ 21,000,000
Traditional debt service coverage ratio			2.0x

SHORT-TERM AND LONG-TERM DEBT -

SHORT-TERM AND LONG-TERM DEBT - Summary of short-term and long-term debt (Details) - USD ($)	Sep. 30, 2019	Sep. 30, 2018
Debt Instrument [Line Items]
Total debt	$ 19,453,579	$ 15,759,145
Less current maturities	8,429,283	9,290,515
Total long term debt	11,024,296	6,468,630
Line of credit payable to bank, final payment due by April 28, 2020
Debt Instrument [Line Items]
Total debt	3,500,000	5,500,000
Notes payable to finance companies, final payments due October 2019 through August 2026
Debt Instrument [Line Items]
Total debt	1,691,991	1,332,993
Note payable to finance company for insurance premiums financed due November 2019 in monthly installments
Debt Instrument [Line Items]
Total debt	525,710	569,247
Note Payable To Bank Due November 2034 [Member]
Debt Instrument [Line Items]
Total debt	1,012,126	1,054,248
Notes Payable To Banks Due November 2025 [Member]
Debt Instrument [Line Items]
Total debt	751,987	851,768
Notes payable to bank, at interest at 6.50%, final payment due February 2019
Debt Instrument [Line Items]
Total debt	0	702,097
Notes payable to bank, at interest at 5.50%, final payment due February 2019
Debt Instrument [Line Items]
Total debt	0	154,116
Note Payable To Bank Due September 2022 [Member]
Debt Instrument [Line Items]
Total debt	3,040,600	4,045,025
Notes payable to bank, at interest at 5.00%, final payment due September 2021
Debt Instrument [Line Items]
Total debt	7,920,005	0
Notes payable to bank, at interest at 5.50%, final payment due September 2021
Debt Instrument [Line Items]
Total debt	$ 1,011,160	$ 1,549,651

SHORT-TERM AND LONG-TERM DEBT_2

SHORT-TERM AND LONG-TERM DEBT - Summary of short-term and long-term debt (Parentheticals) (Details) - USD ($)	12 Months Ended
	Sep. 30, 2019	Sep. 30, 2018
Line of credit payable to bank, final payment due by April 28, 2020
Debt Instrument [Line Items]
Interest rate	5.50%
Notes payable to finance companies, final payments due October 2019 through August 2026
Debt Instrument [Line Items]
Note payable in monthly installments	$ 83,042
Notes payable to finance companies, final payments due October 2019 through August 2026 | Minimum
Debt Instrument [Line Items]
Interest rate	0.00%
Notes payable to finance companies, final payments due October 2019 through August 2026 | Maximum
Debt Instrument [Line Items]
Interest rate	6.03%
Note payable to finance company for insurance premiums financed due November 2019 in monthly installments
Debt Instrument [Line Items]
Note payable in monthly installments	$ 267,677	$ 288,581
Interest rate		2.77%
Note Payable To Bank Due November 2034 [Member]
Debt Instrument [Line Items]
Note payable in monthly installments	$ 7,799
Interest rate	4.82%
Notes Payable To Banks Due November 2025 [Member]
Debt Instrument [Line Items]
Note payable in monthly installments	$ 11,828
Interest rate	5.00%
Notes payable to bank, at interest at 6.50%, final payment due February 2019
Debt Instrument [Line Items]
Note payable in monthly installments	$ 172,473
Interest rate	6.50%
Notes payable to bank, at interest at 5.50%, final payment due February 2019
Debt Instrument [Line Items]
Note payable in monthly installments	$ 30,914
Interest rate	5.00%
Note Payable To Bank Due September 2022 [Member]
Debt Instrument [Line Items]
Note payable in monthly installments	$ 98,865
Interest rate	4.99%
Notes payable to bank, at interest at 5.00%, final payment due September 2021
Debt Instrument [Line Items]
Note payable in monthly installments	$ 46,482
Interest rate	5.00%
Notes payable to bank, at interest at 5.50%, final payment due September 2021
Debt Instrument [Line Items]
Note payable in monthly installments	$ 191,012
Interest rate	5.50%

SHORT-TERM AND LONG-TERM DEBT_3

SHORT-TERM AND LONG-TERM DEBT - Maturities of debt (Details) - USD ($)	Sep. 30, 2019	Sep. 30, 2018
SHORT-TERM AND LONG-TERM DEBT
2020	$ 8,429,283
2021	3,977,300
2022	3,286,263
2023	2,419,847
2024	273,646
Thereafter	1,067,240
Total debt	$ 19,453,579	$ 15,759,145

INCOME TAXES - Components of in

INCOME TAXES - Components of income taxes (Details) - USD ($)	12 Months Ended
	Sep. 30, 2019	Sep. 30, 2018
Federal
Current	$ 289,476	$ 836,977
Deferred	466,009	(333,740)
Total	755,485	503,237
State
Current	81,647	212,524
Deferred	131,439	194,273
Total	213,086	406,797
Total income tax expense	$ 968,571	$ 910,034

INCOME TAXES - Summary of provi

INCOME TAXES - Summary of provision for income taxes differs from amount computed by applying federal statutory rate (Details)	12 Months Ended
	Sep. 30, 2019	Sep. 30, 2018
INCOME TAXES
Statutory rate	21.00%	24.50%
State income taxes	6.00%	8.99%
Meals and other	5.70%	11.84%
Rate change effect on deferred taxes	0.00%	(18.71%)
Effective tax rate	32.70%	26.62%

INCOME TAXES - Summary of incom

INCOME TAXES - Summary of income tax effects of temporary differences giving rise to deferred tax liabilities (Details) - USD ($)	Sep. 30, 2019	Sep. 30, 2018
Deferred income tax liabilities
Property and equipment	$ (2,539,639)	$ (2,023,641)
Other	19,805	(4,639)
Total deferred income tax liabilities	2,519,834	2,028,280
Deferred income tax assets
Other	594,011	699,905
Total deferred income tax assets	594,011	699,905
Total net deferred income tax liabilities	$ 1,925,823	$ 1,328,375

INCOME TAXES - Additional Infor

INCOME TAXES - Additional Information (Details)	12 Months Ended
	Sep. 30, 2019USD ($)
INCOME TAXES
Tax Cuts and Jobs Act, net tax expense (benefit)	$ 588,000

EARNINGS PER SHARE - Summary of

EARNINGS PER SHARE - Summary of amounts used to compute earnings per share (Details ) - USD ($)	3 Months Ended								12 Months Ended
	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2017	Sep. 30, 2019	Sep. 30, 2018
EARNINGS PER SHARE
Net income	$ 2,000,227	$ 485,757	$ (1,124,458)	$ 631,384	$ 2,211,831	$ 1,096,267	$ (947,575)	$ 148,500	$ 1,992,910	$ 2,509,023
Dividends on preferred stock	77,250	77,250	77,250	77,250	77,250	77,250	77,250	77,250	309,000	309,000
Income available to common shareholders	$ 1,922,977	$ 408,507	$ (1,201,708)	$ 554,134	$ 2,134,581	$ 1,019,017	$ (1,024,825)	$ 71,250	$ 1,683,910	$ 2,200,023
Weighted average shares outstanding (in shares)	13,934,720	13,985,579	14,060,456	14,135,900	14,218,949	14,239,836	14,239,836	14,239,836	14,064,871	14,234,571
Weighted average shares outstanding-diluted (in shares)	17,368,053	17,418,912	14,060,456	17,569,233	17,652,282	17,673,169	14,239,836	17,673,169	17,498,204	17,667,904
Earnings per share available to common shareholders (in dollars per share)	$ 0.138	$ 0.029	$ (0.085)	$ 0.039	$ 0.150	$ 0.072	$ (0.072)	$ 0.005	$ 0.120	$ 0.155
Earnings per share available to common shareholders-diluted (in dollars per share)	$ 0.111	$ 0.023	$ (0.085)	$ 0.032	$ 0.121	$ 0.058	$ (0.072)	$ 0.004	$ 0.096	$ 0.125

STOCK PURCHASE PLAN (Details)

STOCK PURCHASE PLAN (Details) - USD ($)	Aug. 22, 2019	Aug. 03, 2018	Nov. 19, 2008	Sep. 30, 2019	Sep. 30, 2018	Dec. 01, 2019
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Compensation expense				$ 0	$ 0
Common stock, shares outstanding				13,924,789	14,194,517
Common stock, shares issued				14,839,836	14,839,836
Value of common stock				$ 1,484	$ 1,484
Employee Stock Purchase Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of common stock shares authorized			1,200,000
Compensation expense			$ 25,000
Percentage stock offered at a purchase price least of fair market value			85.00%
Participant's stock purchased description			A participant's stock purchased during a calendar year may not exceed the lesser of (a) a percentage of the participant's compensation or a total amount as specified by the compensation committee of the Board, or (b) $25,000.
Common stock, shares outstanding	1,393,393	1,423,984
Percentage of common stock issued and outstanding	10.00%	10.00%
Stock Repurchased During Period, Shares	9,139	305,908
Employee Stock Purchase Plan | Subsequent event
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common stock, shares issued						25,297
Value of common stock						$ 20,723

LONG TERM INCENTIVE PLAN (Detai

LONG TERM INCENTIVE PLAN (Details)	Aug. 11, 2010USD ($)item$ / sharesshares	Sep. 30, 2019USD ($)	Sep. 30, 2018USD ($)	Sep. 30, 2011shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Compensation expense		$ 0	$ 0
Deferred tax benefit		$ 0	$ 0
Long Term Incentive Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of common stock shares issued | shares				1,149,000
Long Term Incentive Plan | Officer
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares granted | shares	51,000
Number of officer | item	6
Fair value per share (in dollars per share) | $ / shares	$ 4.22
Vesting period	3 years
Market value of shares granted	$ 215,220

RELATED PARTY TRANSACTIONS (Det

RELATED PARTY TRANSACTIONS (Details) - USD ($)	Dec. 16, 2014	Sep. 30, 2019	Sep. 30, 2018
Related Party Transaction [Line Items]
Percentage of shares of common stock transaction between executive, officers, directors and holders		10% or more
Aggregate principal amount of fixed-rate debt		$ 16,000,000	$ 10,300,000
Loan agreement | Nitro Electric
Related Party Transaction [Line Items]
Term of loan agreement	20 years
Aggregate principal amount of fixed-rate debt	$ 1,200,000
Monthly rent	$ 6,300
Interest rate	4.82%
Monthly payments	$ 7,800
Principal payment		189,000
Interest payment		$ 256,000

LEASE OBLIGATIONS - Future mini

LEASE OBLIGATIONS - Future minimum lease payments under operating leases (Details)	Sep. 30, 2019USD ($)
LEASE OBLIGATIONS
2020	$ 62,260
Future minimum lease payments, Total	$ 62,260

LEASE OBLIGATIONS - Additional

LEASE OBLIGATIONS - Additional Information (Details) - Pieces of equipment - USD ($)	12 Months Ended
	Sep. 30, 2019	Sep. 30, 2018
Operating Leased Assets [Line Items]
Maximum term of operating lease agreement	36 months
Total operating lease payments	$ 169,000	$ 36,000
Rental Expense	$ 10,000,000	$ 5,200,000

MAJOR CUSTOMERS (Details)

MAJOR CUSTOMERS (Details)	3 Months Ended								12 Months Ended
	Sep. 30, 2019USD ($)	Jun. 30, 2019USD ($)	Mar. 31, 2019USD ($)	Dec. 31, 2018USD ($)	Sep. 30, 2018USD ($)	Jun. 30, 2018USD ($)	Mar. 31, 2018USD ($)	Dec. 31, 2017USD ($)	Sep. 30, 2019USD ($)customer	Sep. 30, 2018USD ($)customer
Concentration Risk [Line Items]
Revenue | $	$ 38,283,594	$ 40,187,978	$ 46,955,444	$ 49,114,139	$ 50,292,476	$ 29,549,659	$ 23,093,033	$ 32,547,603	$ 174,541,155	$ 135,482,771
Revenues | Customer Concentration Risk
Concentration Risk [Line Items]
Number of major customers									2	2
Concentration risk description									exceeded 10.0%	exceeded 10.0%
Revenues | Customer Concentration Risk | Gas and petroleum contract work
Concentration Risk [Line Items]
Percentage of revenue									60.40%	51.50%
Revenues | Customer Concentration Risk | Electrical and mechanical contract services
Concentration Risk [Line Items]
Percentage of revenue									32.60%	41.70%
Revenues | Customer Concentration Risk | Water and sewer contract installations and other ancillary services
Concentration Risk [Line Items]
Percentage of revenue									7.00%	6.80%
Revenues | Customer Concentration Risk | Customer One
Concentration Risk [Line Items]
Percentage of revenue									29.00%	17.30%
Revenues | Customer Concentration Risk | Customer Two
Concentration Risk [Line Items]
Percentage of revenue									11.80%	13.30%
Receivables | Customer Concentration Risk
Concentration Risk [Line Items]
Number of major customers									2	2
Concentration risk description									exceeded 10.0%	exceeded 10.0%
Receivables | Customer Concentration Risk | Customer One
Concentration Risk [Line Items]
Percentage of revenue									22.00%	25.50%
Receivables | Customer Concentration Risk | Customer Two
Concentration Risk [Line Items]
Percentage of revenue									12.20%	22.30%

RETIREMENT AND EMPLOYEE BENEF_3

RETIREMENT AND EMPLOYEE BENEFIT PLANS - Summary of Participation in Pension Fund Plan (Details) - USD ($)	12 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2016
Multiemployer Plans [Line Items]
Contributions of Energy Services of America Companies	$ 8,507,411	$ 6,785,037	$ 7,370,278
Central States, Southeast and Southwest Areas Pension Fund
Multiemployer Plans [Line Items]
EIN/Pension Plan Number	36-6044243/001
Pension Protection Act ("PPA") Certified Zone Status	Red	Red
FIP/RP Status	Implemented	Implemented	Implemented
Contributions of Energy Services of America Companies	$ 189,644	$ 0	$ 0
Surcharge Imposed	No	No	No
Expiration Date of Collective Bargaining Agreement	Various	Various	Various
National Automatic Sprinkler Industry Pension Fund Automatic Sprinkler Industry Pension Fund
Multiemployer Plans [Line Items]
EIN/Pension Plan Number	52-6054620/001
Pension Protection Act ("PPA") Certified Zone Status	Red	Red
FIP/RP Status	Implemented	Implemented	Implemented
Contributions of Energy Services of America Companies	$ 131,141	$ 99,731	$ 0
Surcharge Imposed	No	No	No
Expiration Date of Collective Bargaining Agreement	Various	Various	Various
Iron Workers District Council of Southern Ohio &Vicinity Pension Trust
Multiemployer Plans [Line Items]
EIN/Pension Plan Number	31-6038516/001
Pension Protection Act ("PPA") Certified Zone Status	Yellow	Yellow
FIP/RP Status	Implemented	Implemented	Implemented
Contributions of Energy Services of America Companies	$ 122,683	$ 57,960	$ 0
Surcharge Imposed	No	No	No
Expiration Date of Collective Bargaining Agreement	Various	Various	Various
Carpenters Pension Fund of WV
Multiemployer Plans [Line Items]
EIN/Pension Plan Number	55-6027998/001
Pension Protection Act ("PPA") Certified Zone Status	Red	Red
FIP/RP Status	Implemented	Implemented	Implemented
Contributions of Energy Services of America Companies	$ 746,743	$ 444,455	$ 0
Surcharge Imposed	No	No	No
Expiration Date of Collective Bargaining Agreement	Various	Various	Various
Plumbers & Pipefitters National Pension Fund
Multiemployer Plans [Line Items]
EIN/Pension Plan Number	52-6152779/001
Pension Protection Act ("PPA") Certified Zone Status	Yellow	Yellow
FIP/RP Status	Implemented	Implemented	Implemented
Contributions of Energy Services of America Companies	$ 786,940	$ 1,929,939	$ 1,034,996
Surcharge Imposed	No	No	No
Expiration Date of Collective Bargaining Agreement	Various	Various	Various
Sheet Metal Workers' National Pension Fund
Multiemployer Plans [Line Items]
EIN/Pension Plan Number	52-6112463/001
Pension Protection Act ("PPA") Certified Zone Status	Yellow	Yellow
FIP/RP Status	Implemented	Implemented	Implemented
Contributions of Energy Services of America Companies	$ 125,982	$ 153,542	$ 182,991
Surcharge Imposed	No	No	No
Expiration Date of Collective Bargaining Agreement	Various	Various	Various
Sheet Metal Workers Local Pension Fund
Multiemployer Plans [Line Items]
EIN/Pension Plan Number	34-6666753/001
Pension Protection Act ("PPA") Certified Zone Status	Red	Red
FIP/RP Status	Implemented	Implemented	Implemented
Contributions of Energy Services of America Companies	$ 71,143	$ 11,483	$ 0
Surcharge Imposed	No	No	No
Expiration Date of Collective Bargaining Agreement	Various	Various	Various
Plumbers and Pipefitters Local 152 Pension Fund
Multiemployer Plans [Line Items]
EIN/Pension Plan Number	55-6029095/001
Pension Protection Act ("PPA") Certified Zone Status	Red	Red
FIP/RP Status	Implemented	Implemented	Implemented
Contributions of Energy Services of America Companies	$ 19,511	$ 0	$ 0
Surcharge Imposed	No	No	No
Expiration Date of Collective Bargaining Agreement	Various	Various	Various
All Other
Multiemployer Plans [Line Items]
Pension Protection Act ("PPA") Certified Zone Status	Green	Green
Contributions of Energy Services of America Companies	$ 6,313,624	$ 4,087,927	$ 6,152,291
Surcharge Imposed	No	No	No
Expiration Date of Collective Bargaining Agreement	Various	Various	Various

RETIREMENT AND EMPLOYEE BENEF_4

RETIREMENT AND EMPLOYEE BENEFIT PLANS - C.J. Hughes retirement plan (Details) - Union Employees Retirement Plan - C J Hughes Construction Company - USD ($)	12 Months Ended
	Sep. 30, 2019	Sep. 30, 2018
Defined Benefit Plan Disclosure [Line Items]
Percentage of employees contribution to retirement compensation plan	15.00%
Maximum amount of employees contribution	$ 19,000	$ 18,500
Amount of contribution matched per dollar	$ 0.25
Percentage of contribution of eligible wages	6.00%
Amount of contribution to union plan	$ 12,390	$ 9,966

RETIREMENT AND EMPLOYEE BENEF_5

RETIREMENT AND EMPLOYEE BENEFIT PLANS - Energy Services of America retirement plan (Details) - USD ($)	12 Months Ended
	Sep. 30, 2019	Sep. 30, 2018
Non Union Employees Retirement Plan | Nitro Electric And C. J. Hughes Construction Company merger
Defined Benefit Plan Disclosure [Line Items]
Maximum amount of employees contribution	$ 19,000	$ 18,500
Defined contribution plan employer matching contribution percent of each dollar contributed for the first 3%		100.00%
Defined contribution plan employer matching contribution percent of each dollar contributed for the next 3%		50.00%
Retirement Plan | Energy Services of America
Defined Benefit Plan Disclosure [Line Items]
Amount of contribution to union plan	$ 281,000	$ 238,000

CREDIT RISK (Details)

CREDIT RISK (Details)	Sep. 30, 2019USD ($)
CREDIT RISK
FDIC insurance limit	$ 250,000
Uninsured deposits	$ 4,700,000

COMMITMENTS AND CONTINGENCIES (

COMMITMENTS AND CONTINGENCIES (Details) $ in Millions	Sep. 30, 2019USD ($)
COMMITMENTS AND CONTINGENCIES
Performance bonds outstanding amount	$ 5.7

QUARTERLY FINANCIAL DATA (UNA_3

QUARTERLY FINANCIAL DATA (UNAUDITED) (Details) - USD ($)	3 Months Ended								12 Months Ended
	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2017	Sep. 30, 2019	Sep. 30, 2018
Continuing operations
Revenue	$ 38,283,594	$ 40,187,978	$ 46,955,444	$ 49,114,139	$ 50,292,476	$ 29,549,659	$ 23,093,033	$ 32,547,603	$ 174,541,155	$ 135,482,771
Operating Income (loss)	2,935,153	1,229,693	(1,420,888)	1,078,454	3,244,880	1,610,087	(900,258)	(33,637)	3,822,412	3,921,072
Net income	2,000,227	485,757	(1,124,458)	631,384	2,211,831	1,096,267	(947,575)	148,500	1,992,910	2,509,023
Dividends on preferred stock	77,250	77,250	77,250	77,250	77,250	77,250	77,250	77,250	309,000	309,000
Net income (loss) available to common shareholders	$ 1,922,977	$ 408,507	$ (1,201,708)	$ 554,134	$ 2,134,581	$ 1,019,017	$ (1,024,825)	$ 71,250	$ 1,683,910	$ 2,200,023
Weighted-basic shares outstanding (in shares)	13,934,720	13,985,579	14,060,456	14,135,900	14,218,949	14,239,836	14,239,836	14,239,836	14,064,871	14,234,571
Weighted-diluted shares outstanding (in shares)	17,368,053	17,418,912	14,060,456	17,569,233	17,652,282	17,673,169	14,239,836	17,673,169	17,498,204	17,667,904
Earnings (loss) per share available to common shareholders (in dollars per share)	$ 0.138	$ 0.029	$ (0.085)	$ 0.039	$ 0.150	$ 0.072	$ (0.072)	$ 0.005	$ 0.120	$ 0.155
Earnings (loss) per share-diluted available to common shareholders (in dollars per share)	$ 0.111	$ 0.023	$ (0.085)	$ 0.032	$ 0.121	$ 0.058	$ (0.072)	$ 0.004	$ 0.096	$ 0.125

CONDENSED PARENT COMPANY ONLY_3

CONDENSED PARENT COMPANY ONLY FINANCIAL STATEMENTS - BALANCE SHEETS (Details) - USD ($)	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2017
Current assets
Cash and cash equivalents	$ 4,578,275	$ 1,065,550
Other receivables	10,008	266,179
Prepaid expenses and other	2,734,974	4,117,276
Total current assets	39,112,837	37,865,401
Property, plant and equipment, at cost	51,268,358	48,278,427
less accumulated depreciation	(34,453,157)	(31,462,438)
Total fixed assets	16,815,201	16,815,989
Total Assets	55,928,038	54,681,390
Current liabilities
Current maturities of long-term debt	4,403,573	3,221,268
Accounts payable	2,919,618	6,204,870
Total Current Liabilities	18,313,562	23,603,338
Long-term debt, less current maturities	11,024,296	6,468,630
Total Liabilities	31,263,681	31,400,343
Shareholders' equity
Treasury stock, 915,047 shares at September 30, 2019 and 645,319 at September 30, 2018	(91)	(65)
Additional paid in capital	60,938,896	61,239,470
Retained earnings (deficit)	(36,275,932)	(37,959,842)
Total Stockholders' equity	24,664,357	23,281,047	$ 21,130,819
Total liabilities and stockholders' equity	55,928,038	54,681,390
Parent Company
Current assets
Cash and cash equivalents	59,831	499,750
Other receivables	(307)	(307)
Prepaid expenses and other	2,412,348	3,906,287
Total current assets	2,471,872	4,405,730
Property, plant and equipment, at cost	248,402	248,402
less accumulated depreciation	(230,628)	(226,285)
Total fixed assets	17,774	22,117
Due from subsidiaries	8,343,282	4,531,173
Deferred tax asset	218,093	329,150
Investment in subsidiaries	30,530,562	27,466,387
Total Assets	41,581,583	36,754,557
Current liabilities
Current maturities of long-term debt	3,504,301	2,459,680
Lines of credit and short term borrowings	4,025,710	6,069,247
Accounts payable	68,921	33,839
Accrued expenses and other current liabilities	98,843	67,767
Total Current Liabilities	7,697,775	8,630,533
Long-term debt, less current maturities	9,219,451	4,842,977
Total Liabilities	16,917,226	13,473,510
Shareholders' equity
Preferred stock, $.0001 par value Authorized 1,000,000 shares, 206 issued at September 30, 2019 and 2018	0	0
Common stock, $.0001 par value Authorized 50,000,000 shares 14,839,836 issued and 13,924,789 outstanding at September 30, 2019 and 14,239,836 issued and 14,194,517 outstanding at September 30, 2018	1,484	1,484
Treasury stock, 915,047 shares at September 30, 2019 and 645,319 at September 30, 2018	(91)	(65)
Additional paid in capital	60,938,896	61,239,470
Retained earnings (deficit)	(36,275,932)	(37,959,842)
Total Stockholders' equity	24,664,357	23,281,047
Total liabilities and stockholders' equity	$ 41,581,583	$ 36,754,557

CONDENSED PARENT COMPANY ONLY_4

CONDENSED PARENT COMPANY ONLY FINANCIAL STATEMENTS - BALANCE SHEETS (Parenthetical) (Details) - $ / shares	Sep. 30, 2019	Sep. 30, 2018
Condensed Financial Statements, Captions [Line Items]
Preferred stock, par value (in dollars per share)	$ 0.0001	$ 0.0001
Preferred stock, shares authorized	1,000,000	1,000,000
Preferred stock, shares issued	206	206
Common stock, par value (in dollars per share)	$ 0.0001	$ 0.0001
Common stock, shares authorized	50,000,000	50,000,000
Common stock, shares issued	14,839,836	14,839,836
Common stock, shares outstanding	13,924,789	14,194,517
Treasury stock, shares	915,047	645,319
Parent Company
Condensed Financial Statements, Captions [Line Items]
Preferred stock, shares authorized	1,000,000	1,000,000
Preferred stock, shares issued	206	206
Common stock, par value (in dollars per share)	$ 0.0001	$ 0.0001
Common stock, shares authorized	50,000,000	50,000,000
Common stock, shares issued	14,839,836	14,239,836
Common stock, shares outstanding	13,924,789	14,194,517
Treasury stock, shares	915,047	645,319

CONDENSED PARENT COMPANY ONLY_5

CONDENSED PARENT COMPANY ONLY FINANCIAL STATEMENTS - STATEMENTS OF INCOME (Details) - USD ($)	3 Months Ended								12 Months Ended
	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2017	Sep. 30, 2019	Sep. 30, 2018
Condensed Financial Statements, Captions [Line Items]
Selling and administrative expenses									$ 8,857,386	$ 7,728,182
Net loss from operations before taxes	$ 2,935,153	$ 1,229,693	$ (1,420,888)	$ 1,078,454	$ 3,244,880	$ 1,610,087	$ (900,258)	$ (33,637)	3,822,412	3,921,072
Interest expense									(1,064,222)	(916,675)
Net loss before tax									2,961,481	3,419,057
Income tax benefit									968,571	910,034
Net income available to common shareholders									$ 1,683,910	$ 2,200,023
Weighted average shares outstanding-basic (in shares)	13,934,720	13,985,579	14,060,456	14,135,900	14,218,949	14,239,836	14,239,836	14,239,836	14,064,871	14,234,571
Weighted average shares-diluted (in shares)	17,368,053	17,418,912	14,060,456	17,569,233	17,652,282	17,673,169	14,239,836	17,673,169	17,498,204	17,667,904
Net earnings per share-basic available to common shareholders (in dollars per share)									$ 0.120	$ 0.155
Net earnings per share-diluted available to common shareholders(in dollars per share)									$ 0.096	$ 0.125
Parent Company
Condensed Financial Statements, Captions [Line Items]
Selling and administrative expenses									$ 1,399,725	$ 1,226,854
Net loss from operations before taxes									(1,399,725)	(1,226,854)
Other nonoperating income (expense)									(1,043)	6,239
Interest income									58,023	132,281
Interest expense									(960,068)	(811,801)
Interest allocation to subsidiaries									885,316	763,328
Net loss before tax									(1,417,497)	(1,136,807)
Income tax benefit									(346,232)	(259,327)
Net loss from parent									(1,071,265)	(877,480)
Equity in undistributed income of subsidiaries									3,064,175	3,386,503
Dividends on preferred stock									(309,000)	(309,000)
Net income available to common shareholders									$ 1,683,910	$ 2,200,023
Weighted average shares outstanding-basic (in shares)									14,064,871	14,234,571
Weighted average shares-diluted (in shares)									17,498,204	17,667,904
Net earnings per share-basic available to common shareholders (in dollars per share)									$ 0.120	$ 0.155
Net earnings per share-diluted available to common shareholders(in dollars per share)									$ 0.096	$ 0.125

CONDENSED PARENT COMPANY ONLY_6

CONDENSED PARENT COMPANY ONLY FINANCIAL STATEMENTS - CONSOLIDATED STATEMENTS OF CASH FLOWS (Details) - USD ($)	12 Months Ended
	Sep. 30, 2019	Sep. 30, 2018
Adjustments to reconcile net income to net cash provided by operating activities
Provision for deferred taxes	$ 597,448	$ (139,467)
Depreciation expense	4,157,849	4,209,056
Changes in:
Decrease in prepaid expenses	1,382,302	948,740
Decrease in other receivable	256,171	(32,656)
Increase (decrease) in accounts payable	(3,285,252)	682,727
Net cash provided by (used in) operating activities	4,326,870	9,063,687
Cash flows from investing activities:
Investment in property and equipment	(3,364,985)	(1,883,126)
Net cash used in investing activities	(2,735,757)	(1,338,531)
Cash flows from financing activities:
Borrowings on lines of credit and short-term debt, net of (repayments)	7,956,463	(3,363,721)
Principal payments on long term debt	(5,425,251)	(4,612,615)
Preferred dividends paid	(309,000)	(309,000)
Treasury stock purchased by company	(300,600)	(49,795)
Net cash provided by (used in) financing activities	1,921,612	(8,335,131)
Increase in cash and cash equivalents	3,512,725	(609,975)
Cash and cash equivalents beginning of period	1,065,550	1,675,525
Cash and cash equivalents end of period	4,578,275	1,065,550
Supplemental schedule of noncash investing and financing activities:
Insurance premiums financed	3,159,083	3,130,859
Line of credit refinanced to long-term debt	10,000,000
Cash paid during the year for:
Interest	1,064,222	916,675
Income taxes	798,430	346,065
Parent Company
Cash flows from operating activities:
Net income (loss)	1,992,910	2,509,023
Adjustments to reconcile net income to net cash provided by operating activities
Provision for deferred taxes	111,057	397,374
Depreciation expense	4,343	5,552
Equity in undistributed income of subsidiaries	(3,064,175)	(3,386,503)
Advances (to) from subsidiaries	(3,812,109)	7,073,607
Changes in:
Decrease in prepaid expenses	1,493,939	107,045
Decrease in other receivable		307
Increase (decrease) in accounts payable	35,082	(29,519)
Increase (decrease) in accrued expenses and other current liabilities	31,076	(97,176)
Net cash provided by (used in) operating activities	(3,207,877)	6,579,710
Cash flows from financing activities:
Borrowings on lines of credit and short-term debt, net of (repayments)	7,956,463	(3,363,721)
Principal payments on long term debt	(4,578,905)	(3,825,589)
Preferred dividends paid	(309,000)	(309,000)
Treasury stock purchased by company	(300,600)	(49,795)
Net cash provided by (used in) financing activities	2,767,958	(7,548,105)
Increase in cash and cash equivalents	(439,919)	(968,395)
Cash and cash equivalents beginning of period	499,750	1,468,145
Cash and cash equivalents end of period	59,831	499,750
Supplemental schedule of noncash investing and financing activities:
Insurance premiums financed	3,159,083	3,130,859
Accrued dividends on preferred stock	77,250	77,250
Line of credit refinanced to long-term debt	10,000,000
Cash paid during the year for:
Interest	1,064,222	811,801
Income taxes	$ 798,430	$ 346,065