Energy Services of America (ESOA) 10-Q 14 Aug 20 2020 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Jun. 30, 2020	Aug. 13, 2020
Document and Entity Information [Abstract]
Document Type	10-Q
Document Period End Date	Jun. 30, 2020
Entity Registrant Name	Energy Services of America CORP
Entity Central Index Key	0001357971
Trading Symbol	esoa
Entity Current Reporting Status	Yes
Current Fiscal Year End Date	--09-30
Entity Filer Category	Non-accelerated Filer
Entity Interactive Data Current	Yes
Amendment Flag	false
Document Fiscal Year Focus	2020
Document Fiscal Period Focus	Q3
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		13,621,406

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($)	Jun. 30, 2020	Sep. 30, 2019
Current assets
Cash and cash equivalents	$ 9,259,765	$ 4,578,275
Accounts receivable-trade	17,936,571	21,678,622
Allowance for doubtful accounts	(70,310)	(70,310)
Retainages receivable	1,760,007	3,521,561
Other receivables	10,308	10,008
Contract assets	5,308,985	6,659,707
Prepaid expenses and other	4,252,555	2,734,974
Total current assets	38,457,881	39,112,837
Property, plant and equipment, at cost	52,749,261	51,268,358
less accumulated depreciation	(36,111,591)	(34,453,157)
Total fixed assets	16,637,670	16,815,201
Total assets	55,095,551	55,928,038
Current liabilities
Current maturities of long-term debt	3,653,479	4,403,573
Lines of credit and short term borrowings	1,274,608	4,025,710
Accounts payable	6,137,932	2,919,618
Accrued expenses and other current liabilities	2,731,039	3,509,373
Contract liabilities	5,933,338	3,455,288
Total current liabilities	19,730,396	18,313,562
Long-term debt, less current maturities	12,232,061	11,024,296
Deferred income taxes payable	1,451,512	1,925,823
Total liabilities	33,413,969	31,263,681
Shareholders' equity
Preferred stock, $.0001 par value Authorized 1,000,000 shares, 206 issued at June 30, 2020 and September 30, 2019
Common stock, $.0001 par value Authorized 50,000,000 shares 14,839,836 issued and 13,621,406 outstanding at June 30, 2020 and 14,839,836 issued and 13,924,789 outstanding at September 30, 2019	1,484	1,484
Treasury stock, 1,218,430 shares at June 30, 2020 and 915,047 at September 30, 2019	(122)	(91)
Additional paid in capital	60,670,699	60,938,896
Retained deficit	(38,990,479)	(36,275,932)
Total shareholders' equity	21,681,582	24,664,357
Total liabilities and shareholders' equity	$ 55,095,551	$ 55,928,038

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parentheticals) - $ / shares	Jun. 30, 2020	Sep. 30, 2019
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	13,621,406	13,924,789
Treasury stock, shares	1,218,430	915,047

Consolidated Statements of Inco

Consolidated Statements of Income - USD ($)	3 Months Ended		9 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Consolidated Statements of Income
Revenue	$ 30,762,725	$ 40,187,978	$ 74,678,432	$ 136,257,561
Cost of revenues	27,936,548	36,936,926	69,425,044	128,580,270
Gross profit	2,826,177	3,251,052	5,253,388	7,677,291
Selling and administrative expenses	2,532,141	2,021,359	7,473,422	6,790,032
Income (loss) from operations	294,036	1,229,693	(2,220,034)	887,259
Other income (expense)
Interest income	83		53,332	58,023
Other nonoperating expense	(53,793)	(25,736)	(130,472)	(79,312)
Interest expense	(101,335)	(331,067)	(400,197)	(744,541)
Gain on sale of equipment	43,296	68,672	563,062	206,241
Other income (expense), Total	(111,749)	(288,131)	85,725	(559,589)
Income (loss) before income taxes	182,287	941,562	(2,134,309)	327,670
Income tax expense (benefit)	200,242	455,805	(347,629)	334,987
Net (loss) income	(17,955)	485,757	(1,786,680)	(7,317)
Dividends on preferred stock	77,250	77,250	231,750	231,750
(Loss) income available to common shareholders	$ (95,205)	$ 408,507	$ (2,018,430)	$ (239,067)
Weighted average shares outstanding-basic	13,627,293	13,985,579	13,844,340	14,080,299
Weighted average shares-diluted	13,627,293	17,418,912	13,844,340	14,080,299
(Loss) earnings per share available to common shareholders	$ (0.007)	$ 0.029	$ (0.146)	$ (0.017)
(Loss) earnings per share-diluted available to common shareholders	$ (0.007)	$ 0.023	$ (0.146)	$ (0.017)

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($)	9 Months Ended
	Jun. 30, 2020	Jun. 30, 2019
Cash flows from operating activities:
Net loss	$ (1,786,680)	$ (7,317)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Depreciation expense	3,315,541	3,111,170
Gain on sale of equipment	(563,062)	(206,241)
Provision for deferred taxes	15,618	98,506
Decrease in contracts receivable	3,742,051	6,214,948
Decrease (increase) in retainage receivable	1,761,554	(1,192,901)
(Increase) decrease in other receivables	(300)	256,071
Decrease (increase) in contract assets	1,350,722	(11,895,763)
(Increase) decrease in prepaid expenses	(1,517,581)	644,007
Increase in accounts payable	3,218,314	1,905,358
(Decrease) increase in accrued expenses	(1,191,013)	687,648
Increase in contract liabilities	2,478,050	538,397
Decrease in income taxes payable		(545,237)
Net cash provided by (used in) operating activities	10,823,214	(391,354)
Cash flows from investing activities:
Investment in property and equipment	(2,666,570)	(2,851,572)
Proceeds from sales of property and equipment	718,006	511,133
Net cash used in investing activities	(1,948,564)	(2,340,439)
Cash flows from financing activities:
Dividends on common stock	(696,117)
Preferred dividends paid	(309,000)	(309,000)
Treasury stock purchased by company	(268,228)	(290,395)
Borrowings on lines of credit and short term debt, net of (repayments)	(2,751,102)	8,245,029
Proceeds from long term debt	9,839,100
Principal payments on long term debt	(10,007,813)	(2,833,092)
Net cash (used in) provided by financing activities	(4,193,160)	4,812,542
Increase in cash and cash equivalents	4,681,490	2,080,749
Cash and cash equivalents beginning of period	4,578,275	1,065,550
Cash and cash equivalents end of period	9,259,765	3,146,299
Supplemental schedule of noncash investing and financing activities:
Purchases of property & equipment under financing agreements	626,384	379,265
Insurance premiums financed	3,063,543	3,159,083
Accrued dividends on preferred stock	231,750	231,750
Line of credit refinanced to long-term debt		10,000,000
Cash paid during the year for:
Interest	400,197	744,541
Income taxes	$ 147,418	$ 634,702

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, 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 loss			(7,317)		(7,317)
Accrued preferred dividends			(231,750)		(231,750)
Treasury stock purchased by company		(290,370)		(25)	(290,395)
Treasury stock purchased by company (in shares)	(256,073)
Balance at Jun. 30, 2019	$ 1,484	60,949,100	(38,198,909)	(90)	22,751,585
Balance (in shares) at Jun. 30, 2019	13,938,444
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
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net loss			(1,786,680)		(1,786,680)
Accrued preferred dividends			(231,750)		(231,750)
Dividends on common stock ($0.05 per share on 13,922,336 shares; 317,500 common shares are part of preferred units and were not eligible for the common dividend)			(696,117)		(696,117)
Treasury stock purchased by company		(268,197)		(31)	(268,228)
Treasury stock purchased by company (in shares)	(303,383)
Balance at Jun. 30, 2020	$ 1,484	$ 60,670,699	$ (38,990,479)	$ (122)	$ 21,681,582
Balance (in shares) at Jun. 30, 2020	13,621,406

Consolidated Statements of Ch_2

Consolidated Statements of Changes in Shareholders' Equity (Parenthetical)	9 Months Ended
	Jun. 30, 2020$ / sharesshares
Consolidated Statements of Changes in Shareholders' Equity
Dividends on common stock (in dollars per share) | $ / shares	$ 0.05
Common stock, shares eligible for dividend (in shares)	13,922,336
Common stock, shares not eligible for dividend (in shares)	317,500

BUSINESS AND ORGANIZATION

BUSINESS AND ORGANIZATION	9 Months Ended
	Jun. 30, 2020
BUSINESS AND ORGANIZATION
BUSINESS AND ORGANIZATION	1. BUSINESS AND ORGANIZATION 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. The Company’s stock is quoted under the symbol “ESOA” on the OTC QB marketplace operated by the OTC Markets Group. Interim Financial Statements The accompanying unaudited consolidated financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”) and should be read in conjunction with the Company’s audited consolidated financial statements and footnotes thereto for the years ended September 30, 2019 and 2018 included in the Company’s Annual Report on Form 10-K filed with the SEC on December 20, 2019. Certain information and footnote disclosures normally included in annual financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been omitted pursuant to the interim financial reporting rules and regulations of the SEC. The financial statements reflect all adjustments (consisting primarily of normal recurring adjustments) that are, in the opinion of management, necessary for a fair presentation of the Company’s financial position and results of operations. The operating results for the three and nine months ended June 30, 2020 and 2019 are not necessarily indicative of the results to be expected for the full year or any other interim period. Principles of Consolidation The consolidated financial statements of Energy Services include the accounts of Energy Services and its wholly owned subsidiary, C.J. Hughes and its subsidiaries, Nitro, Pinnacle, and Contractors Rental. All significant intercompany accounts and transactions have been eliminated in the consolidation. Unless the context requires otherwise, references to Energy Services include Energy Services and C.J. Hughes and C.J. Hughes’ subsidiaries. Reclassifications Certain reclassifications may have been made in prior years’ financial statements to conform to classifications used in the current year.

REVENUE RECOGNITION

REVENUE RECOGNITION	9 Months Ended
	Jun. 30, 2020
REVENUE RECOGNITION
REVENUE RECOGNITION	2. REVENUE RECOGNITION Our revenue is primarily derived from construction contracts that can span several quarters. We recognize revenue in accordance with Topic 606, which 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 completeness and accuracy of the original bid; · costs associated with scope changes; · changes in costs of labor and/or materials; · extended overhead and other costs due to owner, weather and other delays; · subcontractor performance issues; · changes in productivity expectations; · site conditions that differ from those assumed in the original bid; · changes from original design on design-build projects; · the availability and skill level of workers in the geographic location of the project; · a change in the availability and proximity of equipment and materials; · our ability to fully and promptly recover on affirmative claims and back charges for additional contract costs; and · the customer’s ability to properly administer the contract. 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. Our contract assets may 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. Our contract liabilities may 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	9 Months Ended
	Jun. 30, 2020
DISAGGREGATION OF REVENUE
DISAGGREGATION OF REVENUE	3. DISAGGREGATION OF REVENUE 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, Cost Plus and Time and Materials (“T&M”). The following tables present our disaggregated revenue for the three and nine months ended June 30, 2020 and 2019: Three Months Ended June 30, 2020 Petroleum & Water, Sewer and Electrical and Total revenue Gas Other Mechanical from contracts Lump sum contracts $ — $ — $ 9,042,393 $ 9,042,393 Unit price contracts 15,744,203 1,929,031 — 17,673,234 Cost plus and T&M contracts — 130,250 3,916,848 4,047,098 Total revenue from contracts $ 15,744,203 $ 2,059,281 $ 12,959,241 $ 30,762,725 Earned over time $ 13,017,985 $ 2,059,281 $ 12,658,556 $ 27,735,822 Earned at point in time 2,726,218 — 300,685 3,026,903 Total revenue from contracts $ 15,744,203 $ 2,059,281 $ 12,959,241 $ 30,762,725 Three Months Ended June 30, 2019 Petroleum & Water, Sewer and Electrical and Total revenue Gas Other Mechanical from contracts Lump sum contracts $ — $ — $ 7,966,853 $ 7,966,853 Unit price contracts 22,624,230 2,375,272 — 24,999,502 Cost plus and T&M contracts 451,454 717,601 6,052,568 7,221,623 Total revenue from contracts $ 23,075,684 $ 3,092,873 $ 14,019,421 $ 40,187,978 Earned over time $ 21,229,154 $ 3,092,873 $ 13,610,212 $ 37,932,239 Earned at point in time 1,846,530 — 409,209 2,255,739 Total revenue from contracts $ 23,075,684 $ 3,092,873 $ 14,019,421 $ 40,187,978 Nine Months Ended June 30, 2020 Petroleum & Water, Sewer and Electrical and Total revenue Gas Other Mechanical from contracts Lump sum contracts $ — $ — $ 23,867,792 $ 23,867,792 Unit price contracts 30,248,395 7,566,280 — 37,814,675 Cost plus and T&M contracts 116,428 355,352 12,524,185 12,995,965 Total revenue from contracts $ 30,364,823 $ 7,921,632 $ 36,391,977 $ 74,678,432 Earned over time $ 23,341,817 $ 7,921,632 $ 35,634,089 $ 66,897,538 Earned at point in time 7,023,006 — 757,888 7,780,894 Total revenue from contracts $ 30,364,823 $ 7,921,632 $ 36,391,977 $ 74,678,432 Nine Months Ended June 30, 2019 Petroleum & Water, Sewer and Electrical and Total revenue Gas Other Mechanical from contracts Lump sum contracts $ — $ — $ 26,616,617 $ 26,616,617 Unit price contracts 80,196,368 7,974,901 — 88,171,269 Cost plus and T&M contracts 3,739,264 1,361,467 16,368,944 21,469,675 Total revenue from contracts $ 83,935,632 $ 9,336,368 $ 42,985,561 $ 136,257,561 Earned over time $ 79,517,634 $ 9,336,368 $ 42,122,630 $ 130,976,632 Earned at point in time 4,417,998 — 862,931 5,280,929 Total revenue from contracts $ 83,935,632 $ 9,336,368 $ 42,985,561 $ 136,257,561

CONTRACT BALANCES

CONTRACT BALANCES	9 Months Ended
	Jun. 30, 2020
CONTRACT BALANCES
CONTRACT BALANCES	4. CONTRACT BALANCES The Company’s accounts receivable consists of amounts that have been 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. During the nine months ended June 30, 2020, we recognized revenue of $3.3 million that was included in the contract liability balance at September 30, 2019. Accounts receivable-trade, net of allowance for doubtful accounts, retentions receivable, contract assets and contract liabilities consisted of the following: September 30, 2019 June 30, 2020 Change Accounts receivable-trade, net of allowance for doutful accounts $ 21,608,312 $ 17,866,261 $ (3,742,051) Contract assets Cost and estimated eanings in excess of billings $ 6,659,707 $ 5,308,985 $ (1,350,722) Contract liabilites Billings in excess of cost and estimated earnings $ 3,455,288 $ 5,933,338 $ 2,478,050

PERFORMANCE OBLIGATIONS

PERFORMANCE OBLIGATIONS	9 Months Ended
	Jun. 30, 2020
PERFORMANCE OBLIGATIONS
PERFORMANCE OBLIGATIONS	5. PERFORMANCE OBLIGATIONS The Company provides construction services that can be classified into several groups: petroleum and gas, water, sewer and other, and electrical and mechanical services. Generally, our contracts contain one performance obligation that is satisfied over time because our performance typically creates or enhances an asset that the customer controls as the asset is created or enhanced. We recognize revenue as performance obligations are satisfied and control of the promised good and service is transferred to the customer. 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. Under the cost to cost method, costs incurred to-date are generally the best depiction of transfer of control. 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, direct overhead costs and equipment expense (primarily depreciation, fuel, maintenance and repairs). During the three and nine months ended June 30, 2020, we recognized revenue of $279,000 and $1,083,000 respectively, as a result of changes in contract transaction price related to performance obligations that were satisfied prior to September 30, 2019. 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. The Company does not sell warranties for its construction services. At June 30, 2020, the Company had $27.3 million in remaining unsatisfied performance obligations, in which revenue is expected to be recognized in less than twelve months.

UNCOMPLETED CONTRACTS

UNCOMPLETED CONTRACTS	9 Months Ended
	Jun. 30, 2020
UNCOMPLETED CONTRACTS
UNCOMPLETED CONTRACTS	6. UNCOMPLETED CONTRACTS Costs, estimated earnings, and billings on uncompleted contracts as of June 30, 2020 and September 30, 2019 are summarized as follows: June 30, September 30, 2020 2019 Costs incurred on contracts in progress $ 51,343,299 $ 163,768,655 Estimated earnings, net of estimated losses 11,072,006 18,215,388 62,415,305 181,984,043 Less billings to date 63,039,658 178,779,624 $ (624,353) $ 3,204,419 Costs and estimated earnings in excess of billed on uncompleted contracts $ 5,308,985 $ 6,659,707 Less billings in excess of costs and estimated earnings on uncompleted contracts 5,933,338 3,455,288 $ (624,353) $ 3,204,419 Backlog at June 30, 2020 and September 30, 2019 was $69.8 million and $63.0 million, respectively.

FAIR VALUE MEASUREMENTS

FAIR VALUE MEASUREMENTS	9 Months Ended
	Jun. 30, 2020
Fair Value Disclosures [Abstract]
FAIR VALUE MEASUREMENTS	7. 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 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 for bank loans with similar terms and maturities. The fair value of the aggregate principal amount of the Company’s fixed-rate debt of $16.2 million at June 30, 2020 was $15.2 million. 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. All receivables and payables are carried at net realizable value which approximates fair value because of their short duration to maturity.

(LOSS) EARNINGS PER SHARE

(LOSS) EARNINGS PER SHARE	9 Months Ended
	Jun. 30, 2020
(LOSS) EARNINGS PER SHARE
(LOSS) EARNINGS PER SHARE	8. (LOSS) EARNINGS PER SHARE The amounts used to compute the loss per share for the three and nine months ended June 30, 2020 and 2019 are summarized below. Three Months Ended Three Months Ended Nine Months Ended Nine Months Ended June 30, June 30, June 30, June 30, 2020 2019 2020 2019 Net (loss) income $ (17,955) $ 485,757 $ (1,786,680) $ (7,317) Dividends on preferred stock 77,250 77,250 231,750 231,750 (Loss) income available to common shareholders $ (95,205) $ 408,507 $ (2,018,430) $ (239,067) Weighted average shares outstanding 13,627,293 13,985,579 13,844,340 14,080,299 Weighted average shares outstanding-diluted 13,627,293 17,418,912 13,844,340 14,080,299 (Loss) earnings per share available to common shareholders $ (0.007) $ 0.029 $ (0.146) $ (0.017) (Loss) earnings per share available to common shareholders-diluted $ (0.007) $ 0.023 $ (0.146) $ (0.017)

INCOME TAXES

INCOME TAXES	9 Months Ended
	Jun. 30, 2020
INCOME TAXES
INCOME TAXES	9. INCOME TAXES The components of income taxes are as follows: Three months ended June 30, 2020 2019 Federal Current $ 92,332 $ 218,872 Deferred 63,854 131,513 Total 156,186 350,385 State Current $ 26,045 $ 62,377 Deferred 18,011 43,043 Total 44,056 105,420 Total income tax benefit $ 200,242 $ 455,805 Nine Months Ended June 30, 2020 2019 Federal Current $ (258,971) $ 183,930 Deferred (12,182) 72,194 Total (271,153) 256,124 State Current $ (73,040) $ 52,551 Deferred (3,436) 26,312 Total (76,476) 78,863 Total income tax benefit $ (347,629) $ 334,987 The effective income tax rate for the three months ended June 30, 2020 was 109.8%, as compared to 48.4% for the same period in 2019. The effective income tax rate for the nine months ended June 30, 2020 was (16.3%), as compared to 102.2% for the same period in 2019. Effective income tax rates are estimates and may vary from period to period due to changes in the amount of taxable income and non-deductible expenses. Per diem paid to employees on construction projects is only partially deductible from taxable income and can have a significant impact on the effective tax rate. The income tax effects of temporary differences giving rise to the deferred tax assets and liabilities are as follows: June 30, September 30, 2020 2019 Deferred income tax liabilities Long-term Property and equipment $ 2,466,958 $ 2,539,639 Other (19,805) (19,805) Total deferred income tax liabilities $ 2,447,153 $ 2,519,834 Deferred income tax assets Other 536,944 594,011 Net operating loss carryforward 458,698 — Total deferred income tax assets 995,641 594,011 Total net deferred income tax liabilities $ 1,451,512 $ 1,925,823 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 ended prior to September 30, 2016. 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.

SHORT-TERM AND LONG-TERM DEBT

SHORT-TERM AND LONG-TERM DEBT	9 Months Ended
	Jun. 30, 2020
SHORT-TERM AND LONG-TERM DEBT
SHORT-TERM AND LONG-TERM DEBT	10. SHORT-TERM AND LONG-TERM DEBT 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. 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. On May 12, 2020, the Company received a two-month extension of the line of credit through June 28, 2020. On July 30, 2020, the Company received a one-year extension of the line of credit effective June 28, 2020 with an expiration date of June 28, 2021. As of the September 30, 2019 borrowing base calculation, the Company could borrow up to $11.5 million on the line of credit. The Company had borrowed $3.5 million on the line of credit, leaving $8.0 million available. Subsequent to September 30, 2019, the Company repaid $3.5 million against the line of credit. As of the June 30, 2020 borrowing base calculation, the Company could borrow up to $11.5 million on the line of credit. The Company had no line of credit borrowings, leaving $11.5 million available on the line of credit as of June 30, 2020. 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. 2. The Company received a waiver for all covenant violations for the $12.5 million component of Operating Line of Credit (2019) at June 30, 2020. 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, which was paid in the three months ended December 31, 2019. In January 2020, the Company financed $3.1 million in insurance premium policies. At June 30, 2020, the balance of the remaining premiums to be paid was $1.3 million, which will be paid in equal monthly installments through November 2020. On April 15, 2020, Energy Services of America Corporation and subsidiaries C.J. Hughes Construction Company, Contractors Rental Corporation and Nitro Construction Services, Inc. entered into separate Paycheck Protection Program Notes (the “Notes”) effective April 7, 2020 with United Bank, Inc. as the lender (“Lender”) in an aggregate principal amount of $13,139,100 pursuant to the PPP (collectively, the “PPP Loan”). In a special meeting held on April 27, 2020, the Board of Directors (the “Board”) of the Company unanimously voted to return $3.3 million of the PPP Loan funds after discussing the financing needs of the Company and subsidiaries. That left the Company and subsidiaries with $9.8 million in PPP Loans to fund operations. The Company had used all the available PPP Loan funds as of August 13, 2020 and plans to file for forgiveness in the Company’s fourth quarter of fiscal year 2020. The loan may be forgiven so long as employee and compensation levels of the Company are maintained and 60% of the PPP Loan proceeds are used for payroll expenses, with the remaining 40% of the PPP Loan proceeds used for other qualifying expenses. Any portion of the loan that is not forgiven will be converted to a five-year note with 1.0% interest. A summary of short-term and long-term debt as of June 30, 2020 and September 30, 2019 is as follows: June 30, September 30, 2020 2019 Line of credit payable to bank, monthly interest at 5.50%, final payment due by June 28, 2020. $ — $ 3,500,000 Notes payable to finance companies, due in monthly installments totaling $99,471 including interest ranging from 0.00% to 6.03%, final payments due July 2020 through August 2026, secured by equipment. 1,517,483 1,691,991 Note payable to finance company for insurance premiums financed, due in monthly installments totaling $254,922, including interest rate at 3.50%, final payment due November 2020. 1,274,608 525,710 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. 979,006 1,012,126 Notes payable to bank, due in monthly installments totaling $12,028, including interest at 5.25%, final payment due November 2025 secured by building and property. 671,779 751,987 Notes payable to bank, due in monthly installments totaling $98,865, including interest at 4.99%, final payment due September 2022 secured by equipment. 2,253,004 3,040,600 Notes payable to bank, due in monthly installments totaling $46,482, including interest at 5.00%, final payment due September 2021 secured by equipment. 625,168 1,011,160 Notes payable to bank, due in monthly installments totaling $191,012, including interest at 5.50%, final payment due May 2024 secured by equipment. — 7,920,005 Notes payable to bank for $9.8 million in Paycheck Protection Program ("PPP") loan funds. Payments on the five-year note are expected to begin in November 2020 if PPP loan repayment is not forgiven, due in monthly installments totaling $168,187, including interest at 1.0%, final payment due October 2025. 9,839,100 — Total debt 17,160,148 19,453,579 Less current maturities 4,928,087 8,429,283 Total long term debt $ 12,232,061 $ 11,024,296

BUSINESS AND ORGANIZATION (Poli

BUSINESS AND ORGANIZATION (Policies)	9 Months Ended
	Jun. 30, 2020
BUSINESS AND ORGANIZATION
Interim Financial Statements	Interim Financial Statements The accompanying unaudited consolidated financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”) and should be read in conjunction with the Company’s audited consolidated financial statements and footnotes thereto for the years ended September 30, 2019 and 2018 included in the Company’s Annual Report on Form 10-K filed with the SEC on December 20, 2019. Certain information and footnote disclosures normally included in annual financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been omitted pursuant to the interim financial reporting rules and regulations of the SEC. The financial statements reflect all adjustments (consisting primarily of normal recurring adjustments) that are, in the opinion of management, necessary for a fair presentation of the Company’s financial position and results of operations. The operating results for the three and nine months ended June 30, 2020 and 2019 are not necessarily indicative of the results to be expected for the full year or any other interim period.
Principles of Consolidation	Principles of Consolidation The consolidated financial statements of Energy Services include the accounts of Energy Services and its wholly owned subsidiary, C.J. Hughes and its subsidiaries, Nitro, Pinnacle, and Contractors Rental. All significant intercompany accounts and transactions have been eliminated in the consolidation. Unless the context requires otherwise, references to Energy Services include Energy Services and C.J. Hughes and C.J. Hughes’ subsidiaries.
Reclassifications	Reclassifications Certain reclassifications may have been made in prior years’ financial statements to conform to classifications used in the current year.

DISAGGREGATION OF REVENUE (Tabl

DISAGGREGATION OF REVENUE (Tables)	9 Months Ended
	Jun. 30, 2020
DISAGGREGATION OF REVENUE
Schedule of disaggregation of revenue	Three Months Ended June 30, 2020 Petroleum & Water, Sewer and Electrical and Total revenue Gas Other Mechanical from contracts Lump sum contracts $ — $ — $ 9,042,393 $ 9,042,393 Unit price contracts 15,744,203 1,929,031 — 17,673,234 Cost plus and T&M contracts — 130,250 3,916,848 4,047,098 Total revenue from contracts $ 15,744,203 $ 2,059,281 $ 12,959,241 $ 30,762,725 Earned over time $ 13,017,985 $ 2,059,281 $ 12,658,556 $ 27,735,822 Earned at point in time 2,726,218 — 300,685 3,026,903 Total revenue from contracts $ 15,744,203 $ 2,059,281 $ 12,959,241 $ 30,762,725 Three Months Ended June 30, 2019 Petroleum & Water, Sewer and Electrical and Total revenue Gas Other Mechanical from contracts Lump sum contracts $ — $ — $ 7,966,853 $ 7,966,853 Unit price contracts 22,624,230 2,375,272 — 24,999,502 Cost plus and T&M contracts 451,454 717,601 6,052,568 7,221,623 Total revenue from contracts $ 23,075,684 $ 3,092,873 $ 14,019,421 $ 40,187,978 Earned over time $ 21,229,154 $ 3,092,873 $ 13,610,212 $ 37,932,239 Earned at point in time 1,846,530 — 409,209 2,255,739 Total revenue from contracts $ 23,075,684 $ 3,092,873 $ 14,019,421 $ 40,187,978 Nine Months Ended June 30, 2020 Petroleum & Water, Sewer and Electrical and Total revenue Gas Other Mechanical from contracts Lump sum contracts $ — $ — $ 23,867,792 $ 23,867,792 Unit price contracts 30,248,395 7,566,280 — 37,814,675 Cost plus and T&M contracts 116,428 355,352 12,524,185 12,995,965 Total revenue from contracts $ 30,364,823 $ 7,921,632 $ 36,391,977 $ 74,678,432 Earned over time $ 23,341,817 $ 7,921,632 $ 35,634,089 $ 66,897,538 Earned at point in time 7,023,006 — 757,888 7,780,894 Total revenue from contracts $ 30,364,823 $ 7,921,632 $ 36,391,977 $ 74,678,432 Nine Months Ended June 30, 2019 Petroleum & Water, Sewer and Electrical and Total revenue Gas Other Mechanical from contracts Lump sum contracts $ — $ — $ 26,616,617 $ 26,616,617 Unit price contracts 80,196,368 7,974,901 — 88,171,269 Cost plus and T&M contracts 3,739,264 1,361,467 16,368,944 21,469,675 Total revenue from contracts $ 83,935,632 $ 9,336,368 $ 42,985,561 $ 136,257,561 Earned over time $ 79,517,634 $ 9,336,368 $ 42,122,630 $ 130,976,632 Earned at point in time 4,417,998 — 862,931 5,280,929 Total revenue from contracts $ 83,935,632 $ 9,336,368 $ 42,985,561 $ 136,257,561

CONTRACT BALANCES (Tables)

CONTRACT BALANCES (Tables)	9 Months Ended
	Jun. 30, 2020
CONTRACT BALANCES
Schedule of accounts receivable-trade, net of allowance for doubtful accounts, retainages receivable, contract assets and contract liabilities	September 30, 2019 June 30, 2020 Change Accounts receivable-trade, net of allowance for doutful accounts $ 21,608,312 $ 17,866,261 $ (3,742,051) Contract assets Cost and estimated eanings in excess of billings $ 6,659,707 $ 5,308,985 $ (1,350,722) Contract liabilites Billings in excess of cost and estimated earnings $ 3,455,288 $ 5,933,338 $ 2,478,050

UNCOMPLETED CONTRACTS (Tables)

UNCOMPLETED CONTRACTS (Tables)	9 Months Ended
	Jun. 30, 2020
UNCOMPLETED CONTRACTS
Schedule of costs, estimated earnings and billings on uncompleted contracts	June 30, September 30, 2020 2019 Costs incurred on contracts in progress $ 51,343,299 $ 163,768,655 Estimated earnings, net of estimated losses 11,072,006 18,215,388 62,415,305 181,984,043 Less billings to date 63,039,658 178,779,624 $ (624,353) $ 3,204,419 Costs and estimated earnings in excess of billed on uncompleted contracts $ 5,308,985 $ 6,659,707 Less billings in excess of costs and estimated earnings on uncompleted contracts 5,933,338 3,455,288 $ (624,353) $ 3,204,419

(LOSS) EARNINGS PER SHARE (Tabl

(LOSS) EARNINGS PER SHARE (Tables)	9 Months Ended
	Jun. 30, 2020
(LOSS) EARNINGS PER SHARE
Schedule to compute (loss) earnings per share	Three Months Ended Three Months Ended Nine Months Ended Nine Months Ended June 30, June 30, June 30, June 30, 2020 2019 2020 2019 Net (loss) income $ (17,955) $ 485,757 $ (1,786,680) $ (7,317) Dividends on preferred stock 77,250 77,250 231,750 231,750 (Loss) income available to common shareholders $ (95,205) $ 408,507 $ (2,018,430) $ (239,067) Weighted average shares outstanding 13,627,293 13,985,579 13,844,340 14,080,299 Weighted average shares outstanding-diluted 13,627,293 17,418,912 13,844,340 14,080,299 (Loss) earnings per share available to common shareholders $ (0.007) $ 0.029 $ (0.146) $ (0.017) (Loss) earnings per share available to common shareholders-diluted $ (0.007) $ 0.023 $ (0.146) $ (0.017)

INCOME TAXES (Tables)

INCOME TAXES (Tables)	9 Months Ended
	Jun. 30, 2020
INCOME TAXES
Schedule of components of income taxes	Three months ended June 30, 2020 2019 Federal Current $ 92,332 $ 218,872 Deferred 63,854 131,513 Total 156,186 350,385 State Current $ 26,045 $ 62,377 Deferred 18,011 43,043 Total 44,056 105,420 Total income tax benefit $ 200,242 $ 455,805 Nine Months Ended June 30, 2020 2019 Federal Current $ (258,971) $ 183,930 Deferred (12,182) 72,194 Total (271,153) 256,124 State Current $ (73,040) $ 52,551 Deferred (3,436) 26,312 Total (76,476) 78,863 Total income tax benefit $ (347,629) $ 334,987
Schedule of income tax effects to deferred tax assets and liabilities	June 30, September 30, 2020 2019 Deferred income tax liabilities Long-term Property and equipment $ 2,466,958 $ 2,539,639 Other (19,805) (19,805) Total deferred income tax liabilities $ 2,447,153 $ 2,519,834 Deferred income tax assets Other 536,944 594,011 Net operating loss carryforward 458,698 — Total deferred income tax assets 995,641 594,011 Total net deferred income tax liabilities $ 1,451,512 $ 1,925,823

SHORT-TERM AND LONG-TERM DEBT (

SHORT-TERM AND LONG-TERM DEBT (Tables)	9 Months Ended
	Jun. 30, 2020
SHORT-TERM AND LONG-TERM DEBT
Schedule of summary of short-term and long-term debt	June 30, September 30, 2020 2019 Line of credit payable to bank, monthly interest at 5.50%, final payment due by June 28, 2020. $ — $ 3,500,000 Notes payable to finance companies, due in monthly installments totaling $99,471 including interest ranging from 0.00% to 6.03%, final payments due July 2020 through August 2026, secured by equipment. 1,517,483 1,691,991 Note payable to finance company for insurance premiums financed, due in monthly installments totaling $254,922, including interest rate at 3.50%, final payment due November 2020. 1,274,608 525,710 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. 979,006 1,012,126 Notes payable to bank, due in monthly installments totaling $12,028, including interest at 5.25%, final payment due November 2025 secured by building and property. 671,779 751,987 Notes payable to bank, due in monthly installments totaling $98,865, including interest at 4.99%, final payment due September 2022 secured by equipment. 2,253,004 3,040,600 Notes payable to bank, due in monthly installments totaling $46,482, including interest at 5.00%, final payment due September 2021 secured by equipment. 625,168 1,011,160 Notes payable to bank, due in monthly installments totaling $191,012, including interest at 5.50%, final payment due May 2024 secured by equipment. — 7,920,005 Notes payable to bank for $9.8 million in Paycheck Protection Program ("PPP") loan funds. Payments on the five-year note are expected to begin in November 2020 if PPP loan repayment is not forgiven, due in monthly installments totaling $168,187, including interest at 1.0%, final payment due October 2025. 9,839,100 — Total debt 17,160,148 19,453,579 Less current maturities 4,928,087 8,429,283 Total long term debt $ 12,232,061 $ 11,024,296

DISAGGREGATION OF REVENUE (Deta

DISAGGREGATION OF REVENUE (Details) - USD ($)	3 Months Ended		9 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Disaggregation of Revenue [Line Items]
Total revenue from contracts	$ 30,762,725	$ 40,187,978	$ 74,678,432	$ 136,257,561
Earned over time
Disaggregation of Revenue [Line Items]
Total revenue from contracts	27,735,822	37,932,239	66,897,538	130,976,632
Earned at point in time
Disaggregation of Revenue [Line Items]
Total revenue from contracts	3,026,903	2,255,739	7,780,894	5,280,929
Lump sum contracts
Disaggregation of Revenue [Line Items]
Total revenue from contracts	9,042,393	7,966,853	23,867,792	26,616,617
Unit price contracts
Disaggregation of Revenue [Line Items]
Total revenue from contracts	17,673,234	24,999,502	37,814,675	88,171,269
Cost plus and T&M contracts
Disaggregation of Revenue [Line Items]
Total revenue from contracts	4,047,098	7,221,623	12,995,965	21,469,675
Petroleum and Gas
Disaggregation of Revenue [Line Items]
Total revenue from contracts	15,744,203	23,075,684	30,364,823	83,935,632
Petroleum and Gas | Earned over time
Disaggregation of Revenue [Line Items]
Total revenue from contracts	13,017,985	21,229,154	23,341,817	79,517,634
Petroleum and Gas | Earned at point in time
Disaggregation of Revenue [Line Items]
Total revenue from contracts	2,726,218	1,846,530	7,023,006	4,417,998
Petroleum and Gas | Unit price contracts
Disaggregation of Revenue [Line Items]
Total revenue from contracts	15,744,203	22,624,230	30,248,395	80,196,368
Petroleum and Gas | Cost plus and T&M contracts
Disaggregation of Revenue [Line Items]
Total revenue from contracts		451,454	116,428	3,739,264
Water, Sewer and Other
Disaggregation of Revenue [Line Items]
Total revenue from contracts	2,059,281	3,092,873	7,921,632	9,336,368
Water, Sewer and Other | Earned over time
Disaggregation of Revenue [Line Items]
Total revenue from contracts	2,059,281	3,092,873	7,921,632	9,336,368
Water, Sewer and Other | Unit price contracts
Disaggregation of Revenue [Line Items]
Total revenue from contracts	1,929,031	2,375,272	7,566,280	7,974,901
Water, Sewer and Other | Cost plus and T&M contracts
Disaggregation of Revenue [Line Items]
Total revenue from contracts	130,250	717,601	355,352	1,361,467
Electrical and Mechanical
Disaggregation of Revenue [Line Items]
Total revenue from contracts	12,959,241	14,019,421	36,391,977	42,985,561
Electrical and Mechanical | Earned over time
Disaggregation of Revenue [Line Items]
Total revenue from contracts	12,658,556	13,610,212	35,634,089	42,122,630
Electrical and Mechanical | Earned at point in time
Disaggregation of Revenue [Line Items]
Total revenue from contracts	300,685	409,209	757,888	862,931
Electrical and Mechanical | Lump sum contracts
Disaggregation of Revenue [Line Items]
Total revenue from contracts	9,042,393	7,966,853	23,867,792	26,616,617
Electrical and Mechanical | Cost plus and T&M contracts
Disaggregation of Revenue [Line Items]
Total revenue from contracts	$ 3,916,848	$ 6,052,568	$ 12,524,185	$ 16,368,944

CONTRACT BALANCES (Details)

CONTRACT BALANCES (Details) - USD ($)	9 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Sep. 30, 2019
CONTRACT BALANCES
Accounts receivable-trade, net of allowance for doubtful accounts	$ 17,866,261		$ 21,608,312
Change in accounts receivable-trade	(3,742,051)	$ (6,214,948)
Contract assets
Cost and estimated earnings in excess of billings	5,308,985		6,659,707
Change in cost and estimated earnings in excess of billings	(1,350,722)	11,895,763
Contract liabilities
Billings in excess of cost and estimated earnings	5,933,338		$ 3,455,288
Change in billings in excess of cost and estimated earnings	$ 2,478,050	$ 538,397

CONTRACT BALANCES - Additional

CONTRACT BALANCES - Additional Information (Details) $ in Millions	9 Months Ended
	Jun. 30, 2020USD ($)
Contract Balances [Line Items]
Billing term	14 days
Payment term	15 days
Recognized revenue included in contract liability	$ 3.3
Minimum
Contract Balances [Line Items]
Billing and payment term	30 days
Maximum
Contract Balances [Line Items]
Billing and payment term	45 days

PERFORMANCE OBLIGATIONS (Detail

PERFORMANCE OBLIGATIONS (Details)	3 Months Ended	9 Months Ended
	Jun. 30, 2020USD ($)	Jun. 30, 2020USD ($)
PERFORMANCE OBLIGATIONS
Recognized revenue	$ 279,000	$ 1,083,000
Amount of remaining unsatisfied performance obligations	$ 27,300,000	$ 27,300,000

UNCOMPLETED CONTRACTS - Summary

UNCOMPLETED CONTRACTS - Summary of costs, estimated earnings, and billings on uncompleted contracts (Details) - USD ($)	Jun. 30, 2020	Sep. 30, 2019
UNCOMPLETED CONTRACTS
Costs incurred on contracts in progress	$ 51,343,299	$ 163,768,655
Estimated earnings, net of estimated losses	11,072,006	18,215,388
Costs of uncompleted contracts including net estimated earnings	62,415,305	181,984,043
Less billings to date	63,039,658	178,779,624
Unbilled contracts receivable	(624,353)	3,204,419
Contract assets: Costs and estimated earnings in excess of billed on uncompleted contracts	5,308,985	6,659,707
Less contract liabilities: billings in excess of costs and estimated earnings on uncompleted contracts	5,933,338	3,455,288
Unbilled contracts receivable	$ (624,353)	$ 3,204,419

UNCOMPLETED CONTRACTS - Backlog

UNCOMPLETED CONTRACTS - Backlog (Details) - USD ($) $ in Millions	Jun. 30, 2020	Sep. 30, 2019
UNCOMPLETED CONTRACTS
Backlog	$ 69.8	$ 63

FAIR VALUE MEASUREMENTS (Detail

FAIR VALUE MEASUREMENTS (Details) - USD ($) $ in Millions	Jun. 30, 2020	Sep. 30, 2019
Fair Value Disclosures [Abstract]
Debt principal amount	$ 16.2	$ 16
Debt fair value	$ 15.2	$ 16

(LOSS) EARNINGS PER SHARE - Sum

(LOSS) EARNINGS PER SHARE - Summary of amounts used to compute earnings per share (Details) - USD ($)	3 Months Ended		9 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
(LOSS) EARNINGS PER SHARE
Net (loss) income	$ (17,955)	$ 485,757	$ (1,786,680)	$ (7,317)
Dividends on preferred stock	77,250	77,250	231,750	231,750
(Loss) income available to common shareholders	$ (95,205)	$ 408,507	$ (2,018,430)	$ (239,067)
Weighted average shares outstanding (in shares)	13,627,293	13,985,579	13,844,340	14,080,299
Weighted average shares outstanding-diluted (in shares)	13,627,293	17,418,912	13,844,340	14,080,299
(Loss) earnings per share available to common shareholders	$ (0.007)	$ 0.029	$ (0.146)	$ (0.017)
(Loss) earnings per share available to common shareholders-diluted	$ (0.007)	$ 0.023	$ (0.146)	$ (0.017)

INCOME TAXES - Components of in

INCOME TAXES - Components of income taxes (Details) - USD ($)	3 Months Ended		9 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Federal
Current	$ 92,332	$ 218,872	$ (258,971)	$ 183,930
Deferred	63,854	131,513	(12,182)	72,194
Total	156,186	350,385	(271,153)	256,124
State
Current	26,045	62,377	(73,040)	52,551
Deferred	18,011	43,043	(3,436)	26,312
Total	44,056	105,420	(76,476)	78,863
Total income tax benefit	$ 200,242	$ 455,805	$ (347,629)	$ 334,987

INCOME TAXES - Summary of incom

INCOME TAXES - Summary of income tax effects of temporary differences giving rise to deferred tax liabilities (Details) - USD ($)	Jun. 30, 2020	Sep. 30, 2019
Deferred income tax liabilities
Property and equipment	$ 2,466,958	$ 2,539,639
Other	(19,805)	(19,805)
Total deferred income tax liabilities	2,447,153	2,519,834
Deferred income tax assets
Other	536,944	594,011
Net operating loss carryforward	458,698
Total deferred income tax assets	995,641	594,011
Total net deferred income tax liabilities	$ 1,451,512	$ 1,925,823

INCOME TAXES - Impact of tax ra

INCOME TAXES - Impact of tax rate (Details)	3 Months Ended		9 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
INCOME TAXES
Effective income tax rate	109.80%	48.40%	16.30%	102.20%

SHORT-TERM AND LONG-TERM DEBT -

SHORT-TERM AND LONG-TERM DEBT - Summary of short-term and long-term debt (Details) - USD ($)	Jun. 30, 2020	Sep. 30, 2019
Debt Instrument [Line Items]
Total debt	$ 17,160,148	$ 19,453,579
Less current maturities	4,928,087	8,429,283
Total long term debt	12,232,061	11,024,296
Line of credit payable to bank, final payment due by April 28, 2020
Debt Instrument [Line Items]
Total debt		3,500,000
Notes payable to finance companies, final payments due April 2020 Through August 2026
Debt Instrument [Line Items]
Total debt	1,517,483	1,691,991
Note payable to finance company for insurance premiums financed due November 2020 in monthly installments
Debt Instrument [Line Items]
Total debt	1,274,608	525,710
Note Payable To Bank Due November 2034
Debt Instrument [Line Items]
Total debt	979,006	1,012,126
Notes Payable To Banks Due November 2025
Debt Instrument [Line Items]
Total debt	671,779	751,987
Note Payable To Bank Due September 2022
Debt Instrument [Line Items]
Total debt	2,253,004	3,040,600
Notes payable to bank, at interest at 5.00%, final payment due September 2021
Debt Instrument [Line Items]
Total debt	625,168	1,011,160
Notes payable to bank, at interest at 5.50%, final payment due May 2024
Debt Instrument [Line Items]
Total debt		$ 7,920,005
Note Payable To Bank Due October 2025
Debt Instrument [Line Items]
Total debt	$ 9,839,100

SHORT-TERM AND LONG-TERM DEBT_2

SHORT-TERM AND LONG-TERM DEBT - Summary of short-term and long-term debt (Parentheticals) (Details) - USD ($)	9 Months Ended
	Jun. 30, 2020	Sep. 30, 2019
Debt Instrument [Line Items]
Debt Instrument, Face Amount	$ 16,200,000	$ 16,000,000
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 April 2020 Through August 2026
Debt Instrument [Line Items]
Note payable in monthly installments	$ 99,471
Notes payable to finance companies, final payments due April 2020 Through August 2026 | Minimum
Debt Instrument [Line Items]
Interest rate	0.00%
Notes payable to finance companies, final payments due April 2020 Through August 2026 | Maximum
Debt Instrument [Line Items]
Interest rate	6.03%
Note payable to finance company for insurance premiums financed due November 2020 in monthly installments
Debt Instrument [Line Items]
Note payable in monthly installments	$ 254,922
Interest rate	3.50%
Note Payable To Bank Due November 2034
Debt Instrument [Line Items]
Note payable in monthly installments	$ 7,799
Interest rate	4.82%
Notes Payable To Banks Due November 2025
Debt Instrument [Line Items]
Note payable in monthly installments	$ 12,028
Interest rate	5.25%
Note Payable To Bank Due September 2022
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 May 2024
Debt Instrument [Line Items]
Note payable in monthly installments	$ 191,012
Interest rate	5.50%
Note Payable To Bank Due October 2025
Debt Instrument [Line Items]
Note payable in monthly installments	$ 168,187
Interest rate	1.00%
Debt Instrument, Face Amount	$ 9,800,000
Debt Instrument, Term	5 years

SHORT-TERM AND LONG-TERM DEBT_3

SHORT-TERM AND LONG-TERM DEBT - Interest rates (Details) - USD ($)	Apr. 27, 2020	Apr. 15, 2020	Mar. 21, 2018	Jan. 31, 2020	Jan. 31, 2019	Jun. 30, 2020	Sep. 30, 2019
Line of Credit Facility [Line Items]
Insurance policy amount				$ 3,100,000	$ 3,200,000
Insurance policy premium outstanding						$ 1,300,000	$ 526,000
Debt Instrument, Face Amount						16,200,000	16,000,000
Note Payable To Bank Due October 2025
Line of Credit Facility [Line Items]
Debt Instrument, Face Amount						$ 9,800,000
Debt Instrument, Term						5 years
Interest rate						1.00%
United Bank, Inc.
Line of Credit Facility [Line Items]
Amount available to borrowing						$ 11,500,000	11,500,000
United Bank, Inc. | Paycheck Protection Program Notes
Line of Credit Facility [Line Items]
Debt Instrument, Face Amount		$ 13,139,100
Repayments of Debt	$ 3,300,000
Loan amount to fund operations	$ 9,800,000
Percentage of loan proceeds used for payroll expenses		60.00%
Percentage of loan proceeds used for other expenses		40.00%
United Bank, Inc. | Financing agreement "Operating Line of Credit (2018)"
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
Interest rate on line of credit			4.99%
Amount borrowed against the line of credit						0	3,500,000
Amount repaid against the line of credit							3,500,000
Amount available to borrowing						$ 11,500,000	$ 8,000,000
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						2.0x
Amount of minimum tangible net worth						$ 21,000,000
Traditional debt service coverage ratio						2.0x
United Bank, Inc. | Financing agreement "Operating Line of Credit (2018)" | 12.5 million component
Line of Credit Facility [Line Items]
Amount borrowed against the line of credit			$ 12,500,000
United Bank, Inc. | Financing agreement "Operating Line of Credit (2018)" | 2.5 million component
Line of Credit Facility [Line Items]
Line of credit			$ 2,500,000