Energy Services of America (ESOA) 8-K/A Independent Auditor's Report

Exhibit 99.2

ENERGY SERVICES OF AMERICA CORPORATION

PRO FORMA FINANCIAL STATEMENTS

SEPTEMBER 30, 2020 AND 2019

ENERGY SERVICES OF AMERICA CORPORATION

CONSOLIDATED PRO FORMA BALANCE SHEETS

As of September 30, 2020 and 2019

	2020			2019
Assets
Current assets
Cash and cash equivalents	$	10,669,628		$	4,124,419
Accounts receivable-trade		19,277,708			23,031,547
Allowance for doubtful accounts		(70,310	)		(70,310	)
Retainages receivable		2,483,809			3,521,561
Other receivables		9,458			10,008
Contract assets		6,545,863			6,674,460
Prepaid expenses and other		3,373,135			2,744,146
Total current assets		42,289,291			40,035,831
Property, plant and equipment, at cost		55,174,843			53,118,358
less accumulated depreciation		(37,581,129	)		(34,777,157	)
Total fixed assets		17,593,714			18,341,201
Acquired intangible assets, net		150,000			150,000
Goodwill		4,220,829			4,220,829
Total assets	$	64,253,834		$	62,747,861
Liabilities and shareholders' equity
Current liabilities
Current maturities of long-term debt	$	5,327,398		$	5,668,000
Lines of credit and short term borrowings		509,843			4,025,710
Accounts payable		5,310,858			3,131,090
Accrued expenses and other current liabilities		4,274,893			3,566,637
Contract liabilities		4,851,900			3,455,288
Total current liabilities		20,274,892			19,846,725
Long-term debt, less current maturities		13,939,207			15,027,869
Deferred income taxes payable		2,411,305			2,244,693
Total liabilities		36,625,404			37,119,287
Shareholders' equity
Preferred stock, $.0001 par value
Authorized 1,000,000 shares, 206 issued at September 30,  2020 and 2019		-			-
Common stock, $.0001 par value
Authorized 50,000,000 shares 14,839,836 issued and 13,621,406 outstanding at September 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 September 30, 2020 and 915,047 at September 30, 2019		(122	)		(91	)
Additional paid in capital		60,670,699			60,938,896
Retained earnings (deficit)		(33,043,631	)		(35,311,715	)
Total shareholders' equity		27,628,430			25,628,574
Total liabilities and shareholders' equity	$	64,253,834		$	62,747,861

ENERGY SERVICES OF AMERICA CORPORATION

CONSOLIDATED PRO FORMA STATEMENTS OF INCOME

For the years ended September 30, 2020 and 2019

	2020			2019
Revenue	$	125,320,477		$	181,202,687
Cost of revenues		109,636,178			166,033,552
Gross profit		15,684,299			15,169,135
Selling and administrative expenses		10,649,838			9,616,457
Income from operations		5,034,461			5,552,678
Other income (expense)
Interest income		53,830			67,275
Other nonoperating expense		(239,551	)		(258,531	)
Interest expense		(700,926	)		(1,337,178	)
Gain on sale of equipment		579,326			258,082
		(307,321	)		(1,270,352	)
Income before income taxes		4,727,140			4,282,326
Income tax expense		1,453,939			1,325,199
Net income		3,273,201			2,957,127
Dividends on preferred stock		309,000			309,000
Net income available to common shareholders	$	2,964,201		$	2,648,127
Weighted average shares outstanding-basic		13,804,835			14,064,871
Weighted average shares-diluted		17,238,168			17,498,204
Earnings per share available to common shareholders	$	0.215		$	0.188
Earnings per share-diluted available to common shareholders	$	0.172		$	0.151

	Energy Services of America Corporation															Energy Services of America Corporation
	Consolidated Balance Sheets (Audited)						West Virginia Pipeline			Pro Forma						Consolidated Pro Forma Balance Sheets
	September 30,						Purchase Entry			Adjusting Entries						September 30,
	2020			2019			2019			2020			2019			2020			2019
Assets
Current assets
Cash and cash equivalents	$	11,216,820		$	4,578,275		$	250,000	(a)	$	(93,336	)(e)	$	(703,856	)(e)	$	10,669,628		$	4,124,419
Accounts receivable-trade		18,246,989			21,678,622			-			(322,206	)(g)		1,352,925	(f)		19,277,708			23,031,547
Allowance for doubtful accounts		(70,310	)		(70,310	)					-			-			(70,310	)		(70,310	)
Retainages receivable		2,483,809			3,521,561			-			-			-			2,483,809			3,521,561
Other receivables		9,458			10,008			-			-			-			9,458			10,008
Contract assets		6,545,863			6,659,707			-			(14,753	)(g)		14,753	(f)		6,545,863			6,674,460
Prepaid expenses and other		3,338,943			2,734,974			-			25,020	(g)		9,172	(f)		3,373,135			2,744,146
Total current assets		41,771,572			39,112,837			250,000			(405,275	)		672,994			42,289,291			40,035,831
Property, plant and equipment, at cost		53,324,843			51,268,358			1,850,000	(b)		-			-			55,174,843			53,118,358
less accumulated depreciation		(36,933,129	)		(34,453,157	)		-			(324,000	)(h)		(324,000	)(h)		(37,581,129	)		(34,777,157	)
Total fixed assets		16,391,714			16,815,201			1,850,000			(324,000	)		(324,000	)		17,593,714			18,341,201
Acquired intangible assets, net		-			-			300,000	(c)		-			(150,000	)(i)		150,000			150,000
Goodwill		-			-			4,220,829			-			-			4,220,829			4,220,829
Total assets	$	58,163,286		$	55,928,038		$	6,620,829		$	(729,275	)	$	198,994		$	64,253,834		$	62,747,861
Liabilities and shareholders' equity
Current liabilities
Current maturities of long-term debt	$	4,028,900		$	4,403,573		$	1,512,829	(d)	$	34,071	(k)	$	(248,402	)(j)	$	5,327,398		$	5,668,000
Lines of credit and short term borrowings		509,843			4,025,710			-			-			-			509,843			4,025,710
Accounts payable		5,222,222			2,919,618			-			(122,836	)(g)		211,472	(f)		5,310,858			3,131,090
Accrued expenses and other current liabilities		4,237,172			3,509,373			-			(19,543	)(g)		57,264	(f)		4,274,893			3,566,637
Contract liabilities		4,851,900			3,455,288			-			-			-			4,851,900			3,455,288
Total current liabilities		18,850,037			18,313,562			1,512,829			(108,308	)		20,334			20,274,892			19,846,725
Long-term debt, less current maturities		11,233,705			11,024,296			5,108,000	(d)		(1,298,071	)(m)		(1,104,427	)(l)		13,939,207			15,027,869
Deferred income taxes payable		2,255,515			1,925,823			-			(163,080	)(n)		318,870	(n)		2,411,305			2,244,693
Total liabilities		32,339,257			31,263,681			6,620,829			(1,569,459	)		(765,223	)		36,625,404			37,119,287
Shareholders' equity
Preferred stock, $.0001 par value, Authorized 1,000,000 shares, 206 issued at September 30, 2020 and 2019		-			-												-			-
Common stock, $.0001 par value
Authorized 50,000,000 shares 14,839,836 issued and 13,621,406 outstanding at September 30, 2020 and 14,839,836 issued and 13,924,789 outstanding at September 30, 2019		1,484			1,484			-			-			-			1,484			1,484
Treasury stock, 1,218,430 shares at September 30, 2020 and 915,047 at September 30, 2019		(122	)		(91	)											(122	)		(91	)
Additional paid in capital		60,670,699			60,938,896			-			-			-			60,670,699			60,938,896
Retained earnings (deficit)		(34,848,032	)		(36,275,932	)		-			840,184	(o)		964,217	(o)		(33,043,631	)		(35,311,715	)
Total shareholders' equity		25,824,029			24,664,357			-			840,184			964,217			27,628,430			25,628,574
Total liabilities and shareholders' equity	$	58,163,286		$	55,928,038		$	6,620,829		$	(729,275	)	$	198,994		$	64,253,834		$	62,747,861

(a)	Cash acquired in purchase
(b)	Property, plant and equipment acquired in purchase at stepped up value
(c)	Non-compete valued at $150,000 and customer list valued at $150,000
(d)	Debt to finance purchase, $6.5mm, and $120,829 in assume equipment debt
(e)	Cash flow effect of adjustments
(f)	From WVP 2019 audited financial statements
(g)	Fiscal year 2020 adjustment to net to audited financial statements
(h)	Depreciation based on stepped up asset value
(i)	Amortization of non-compete intangile asset
(j)	Adjustment to reflect $120,829 in payments for paid off within twelve months and a ($127,573) reclass to long-term debt
(k)	$34,071 reclass from long-term debt
(l)	Long term debt payments of $1,232,000, partially offset by $127,573 reclass from current portion of long-term debt
(m)	Long term debt payments of $1,264,000 and $34,071 reclass to current portion of long-term debt
(n)	Current year deferred income tax adjustment primarily due to property, plant and equipment aquired in purchase, partially offset by tax amortization of goodwill
(o)	Current year net income from WVP audited financial statements, partially offset by pro forma income statement adjustments

	Energy Services of America Corporation						West Virginia Pipeline												Energy Services of America Corporation
	Consolidated Statements of Income (Audited)						Statements of Income (Audited)												Consolidated Pro Forma Statements of Income
	For the years Ended September 30,						For the Years Ended December 31,						Pro Forma Adjustments						For the years Ended September 30,
	2020			2019			2020			2019			2020			2019			2020			2019
Revenue	$	119,194,440		$	174,541,155		$	6,126,037		$	6,661,532		$	-		$	-		$	125,320,477		$	181,202,687
Cost of revenues		105,693,209			161,861,357			3,899,969			4,152,195			43,000	(a)		20,000	(a)		109,636,178			166,033,552
Gross profit		13,501,231			12,679,798			2,226,068			2,509,337			(43,000	)		(20,000	)		15,684,299			15,169,135
Selling and administrative expenses		9,831,578			8,857,386			818,260			759,071									10,649,838			9,616,457
Income from operations		3,669,653			3,822,412			1,407,808			1,750,266			(43,000	)		(20,000	)		5,034,461			5,552,678
Other income (expense)
Interest income		53,332			58,023			498			9,252			-			-			53,830			67,275
Other nonoperating (expense) income		(239,862	)		(112,814	)		311			(145,717	)		-			-			(239,551	)		(258,531	)
Interest expense		(486,246	)		(1,064,222	)		(8,680	)		(14,956	)		(206,000	)(b)		(258,000	)(b)		(700,926	)		(1,337,178	)
Gain on sale of equipment		579,326			258,082			-			-			-			-			579,326			258,082
		(93,450	)		(860,931	)		(7,871	)		(151,421	)		(206,000	)		(258,000	)		(307,321	)		(1,270,352	)
Income before income taxes		3,576,203			2,961,481			1,399,937			1,598,845			(249,000	)		(278,000	)		4,727,140			4,282,326
Income tax expense		1,143,186			968,571			-			-			310,753	(d)		356,628	(c)		1,453,939			1,325,199
Net income		2,433,017			1,992,910			1,399,937			1,598,845			(559,753	)		(634,628	)		3,273,201			2,957,127
Dividends on preferred stock		309,000			309,000			-			-			-			-			309,000			309,000
Net income available to common shareholders	$	2,124,017		$	1,683,910		$	1,399,937		$	1,598,845		$	(559,753	)	$	(634,628	)	$	2,964,201		$	2,648,127
Weighted average shares outstanding-basic		13,804,835			14,064,871															13,804,835			14,064,871
Weighted average shares-diluted		17,238,168			17,498,204															17,238,168			17,498,204
Earnings per share available to common shareholders	$	0.154		$	0.120														$	0.215		$	0.188
Earnings per share-diluted available to common shareholders	$	0.123		$	0.096														$	0.172		$	0.151

(a)	Depreciation adjustment for the stepped up value of property, plant and equipment
(b)	Interest on debt obtained to finance purchase
(c)	$431,688 adjustment due to WVP previously filing as an "S" corporation during audited periods, partially offset by a $75,060 tax effect of pro forma adjustments
(d)	$377,983 adjustment due to WVP previously filing as an "S" corporation during audited periods, partially offset by a $67,230 tax effect of pro forma adjustments