Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | |
Sep. 30, 2021 | Dec. 28, 2021 | |
Document and Entity Information [Abstract] | ||
Document Type | 10-K | |
Document Annual Report | true | |
Entity File Number | 001-32998 | |
Document Transition Report | false | |
Document Period End Date | Sep. 30, 2021 | |
Entity Registrant Name | Energy Services of America CORP | |
Entity Central Index Key | 0001357971 | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 20-4606266 | |
Entity Address, Address Line One | 75 West 3rd Ave. | |
Entity Address, City or Town | Huntington | |
Entity Address, Postal Zip Code | 25701 | |
Entity Address, State or Province | WV | |
City Area Code | 304 | |
Local Phone Number | 522-3868 | |
Title of 12(g) Security | Common Stock, par value $0.0001 per share | |
Trading Symbol | esoa | |
Entity Voluntary Filers | No | |
Entity Well-known Seasoned Issuer | No | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 16,247,898 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --09-30 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | FY | |
Entity Public Float | $ 13,654,316 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) | Sep. 30, 2021 | Sep. 30, 2020 |
Current assets | ||
Cash and cash equivalents | $ 8,226,739 | $ 11,216,820 |
Accounts receivable-trade | 21,092,517 | 18,246,989 |
Allowance for doubtful accounts | (70,310) | (70,310) |
Retainages receivable | 917,526 | 2,483,809 |
Other receivables | 543,328 | 9,458 |
Contract assets | 8,730,402 | 6,545,863 |
Prepaid expenses and other | 3,541,000 | 3,338,943 |
Total current assets | 42,981,202 | 41,771,572 |
Property, plant and equipment, at cost | 61,145,705 | 53,324,843 |
less accumulated depreciation | (38,195,686) | (36,933,129) |
Total fixed assets | 22,950,019 | 16,391,714 |
Intangible assets, net | 2,425,923 | |
Goodwill | 1,814,317 | |
Total assets | 70,171,461 | 58,163,286 |
Current liabilities | ||
Current maturities of long-term debt | 3,401,574 | 4,028,900 |
Lines of credit and short term borrowings | 5,040,250 | 509,843 |
Accounts payable | 7,285,392 | 5,222,222 |
Accrued expenses and other current liabilities | 5,599,702 | 4,237,172 |
Contract liabilities | 3,153,290 | 4,851,900 |
Total current liabilities | 24,480,208 | 18,850,037 |
Long-term debt, less current maturities | 9,020,774 | 11,233,705 |
Deferred tax liability | 2,033,433 | 2,255,515 |
Total liabilities | 35,534,415 | 32,339,257 |
Shareholders' equity | ||
Preferred stock, $.0001 par value Authorized 1,000,000 shares, 206 issued at September 30, 2021 and 2020 | ||
Common stock, $.0001 par value Authorized 50,000,000 shares 14,839,836 issued and 13,621,406 outstanding at September 30, 2021 and 2020 | 1,484 | 1,484 |
Treasury stock, 1,218,430 shares at September 30, 2021, and 2020 | (122) | (122) |
Additional paid in capital | 60,670,699 | 60,670,699 |
Retained deficit | (26,035,015) | (34,848,032) |
Total shareholders' equity | 34,637,046 | 25,824,029 |
Total liabilities and shareholders' equity | $ 70,171,461 | $ 58,163,286 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parentheticals) - $ / shares | Sep. 30, 2021 | Sep. 30, 2020 |
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 | 13,621,406 |
Treasury stock, shares | 1,218,430 | 1,218,430 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) | 3 Months Ended | 12 Months Ended | ||||||||
Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2021 | Sep. 30, 2020 | |
CONSOLIDATED STATEMENTS OF INCOME | ||||||||||
Revenue | $ 39,564,667 | $ 25,285,951 | $ 25,605,412 | $ 32,009,796 | $ 44,516,008 | $ 30,762,725 | $ 18,072,400 | $ 25,843,307 | $ 122,465,826 | $ 119,194,440 |
Cost of revenues | 109,544,804 | 105,693,209 | ||||||||
Gross profit | 12,921,022 | 13,501,231 | ||||||||
Selling and administrative expenses | 13,813,644 | 9,831,578 | ||||||||
(Loss) income from operations | 2,312,792 | (502,253) | (1,950,390) | (752,771) | 5,889,687 | 294,036 | (2,275,040) | (239,030) | (892,622) | 3,669,653 |
Other income (expense) | ||||||||||
Interest income | 286,645 | 53,332 | ||||||||
Paycheck Protection Program ("PPP") loan forgiveness | 9,839,100 | 0 | ||||||||
Other nonoperating expense | (289,330) | (239,862) | ||||||||
Interest expense | (557,320) | (486,246) | ||||||||
Gain on sale of equipment | 681,653 | 579,326 | ||||||||
Other nonoperating income (expense), Total | 9,960,748 | (93,450) | ||||||||
Income before income taxes | 9,068,126 | 3,576,203 | ||||||||
Income tax (benefit) expense | (29,129) | 1,143,186 | ||||||||
Net income | 1,743,148 | 9,313,240 | (1,311,471) | (647,662) | 4,219,697 | (17,955) | (1,694,611) | (74,114) | 9,097,255 | 2,433,017 |
Dividends on preferred stock | $ 52,488 | $ 77,250 | $ 77,250 | $ 77,250 | $ 77,250 | $ 77,250 | $ 77,250 | $ 77,250 | 284,238 | 309,000 |
Net income available to common shareholders | $ 8,813,017 | $ 2,124,017 | ||||||||
Weighted average shares outstanding-basic | 13,621,406 | 13,621,406 | 13,624,406 | 13,621,406 | 13,621,406 | 13,627,293 | 13,783,546 | 13,911,610 | 13,621,406 | 13,804,835 |
Weighted average shares-diluted | 16,791,641 | 17,089,722 | 13,624,406 | 13,621,406 | 17,054,739 | 13,627,293 | 13,783,546 | 13,911,610 | 16,988,424 | 17,238,168 |
Earnings per share available to common shareholders | $ 0.647 | $ 0.154 | ||||||||
Net earnings per share-diluted available to common shareholders | $ 0.519 | $ 0.123 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) | 12 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Cash flows from operating activities: | ||
Net income (loss) | $ 9,097,255 | $ 2,433,017 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation expense | 4,661,789 | 4,395,362 |
PPP loan forgiveness | (9,839,100) | 0 |
Gain on sale of equipment | (681,653) | (579,326) |
Provision for deferred taxes | 211,677 | 329,692 |
Amortization of intangible assets | 230,588 | 0 |
(Increase) decrease in contracts receivable | (2,845,528) | 3,431,633 |
Decrease in retainage receivable | 1,566,283 | 1,037,752 |
Increase in other receivable | (533,870) | 550 |
(Increase) decrease in contract assets | (2,184,539) | 113,844 |
Increase in prepaid expenses | (202,057) | (603,969) |
Increase in accounts payable | 2,063,170 | 2,302,604 |
Increase in accrued expenses | 953,534 | 727,799 |
(Decrease) increase in contract liabilities | (1,698,610) | 1,396,612 |
Net cash provided by operating activities | 798,939 | 14,985,570 |
Cash flows from investing activities: | ||
Acquisition of Revolt Energy | (150,000) | 0 |
Acquisition of West Virginia Pipeline, net of cash received of $250,000 | (3,250,000) | 0 |
Investment in property and equipment | (6,047,693) | (3,534,821) |
Proceeds from sales of property and equipment | 758,391 | 768,656 |
Net cash used in investing activities | (8,689,302) | (2,766,165) |
Cash flows from financing activities: | ||
Dividends on common stock | 0 | (696,117) |
Preferred dividends paid | (309,000) | (309,000) |
Treasury stock purchased by company | 0 | (268,228) |
Borrowings on lines of credit and short term debt, net of (repayments) | 8,030,407 | (3,515,867) |
Proceeds from long term debt | 0 | 13,139,100 |
Principal payments on long term debt | (2,821,125) | (13,930,748) |
Net cash provided by (used in) financing activities | 4,900,282 | (5,580,860) |
(Decrease) increase in cash and cash equivalents | (2,990,081) | 6,638,545 |
Cash and cash equivalents beginning of period | 11,216,820 | 4,578,275 |
Cash and cash equivalents end of period | 8,226,739 | 11,216,820 |
Supplemental schedule of noncash investing and financing activities: | ||
Purchases of property & equipment under financing agreements | 3,349,139 | 626,384 |
Insurance premiums financed | 3,213,402 | 3,063,543 |
Note payable to finance West Virginia Pipeline acquisition, discounted by $150,000 | 3,000,000 | 0 |
Note payable to refinance short-term borrowing | 3,500,000 | 0 |
Accrued dividends on preferred stock | 52,488 | 77,250 |
Debt assumed in acquisitions | 205,829 | 0 |
Cash paid during the year for: | ||
Interest | 557,320 | 486,246 |
Income taxes | $ 251,996 | $ 785,630 |
CONSOLIDATED STATEMENTS OF CA_2
CONSOLIDATED STATEMENTS OF CASH FLOWS (Parentheticals) | 12 Months Ended |
Sep. 30, 2021USD ($) | |
CONSOLIDATED STATEMENTS OF CASH FLOWS | |
Cash received | $ 250,000 |
Cash Discounted | $ 150,000 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS EQUITY - USD ($) | Common Stock | Additional Paid in Capital. | Retained Deficit | Treasury Stock | Total |
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 income (loss) | 2,433,017 | 2,433,017 | |||
Accrued preferred dividends | (309,000) | (309,000) | |||
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 Sep. 30, 2020 | $ 1,484 | 60,670,699 | (34,848,032) | (122) | 25,824,029 |
Balance (in shares) at Sep. 30, 2020 | 13,621,406 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income (loss) | 9,097,255 | 9,097,255 | |||
Accrued preferred dividends | (284,238) | (284,238) | |||
Balance at Sep. 30, 2021 | $ 1,484 | $ 60,670,699 | $ (26,035,015) | $ (122) | $ 34,637,046 |
Balance (in shares) at Sep. 30, 2021 | 13,621,406 |
CONSOLIDATED STATEMENTS OF CH_2
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS EQUITY (Parenthetical) | 12 Months Ended |
Sep. 30, 2020$ / sharesshares | |
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY | |
Dividends on common stock, 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 | 12 Months Ended |
Sep. 30, 2021 | |
BUSINESS AND ORGANIZATION | |
BUSINESS AND ORGANIZATION | 1. BUSINESS AND ORGANIZATION: Energy Services of America Corporation (“Energy Services” or the “Company”) is a contractor and service company that operates primarily in the mid-Atlantic region of the United States and provides services to customers in the natural gas, petroleum, water distribution, automotive, chemical, and power industries. 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. 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, provides electrical, mechanical, HVAC/R, solar installation, and fire protection services to customers primarily in the automotive, chemical, and power industries. 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 C.J. Hughes, Nitro, and Contractors Rental construction personnel are union members of various related construction trade unions and are subject to collective bargaining agreements that expire at varying time intervals. On December 31, 2020, Energy Services completed the purchase of West Virginia Pipeline, Inc. (“West Virginia Pipeline”), a West Virginia corporation located in Princeton, West Virginia. West Virginia Pipeline, a wholly owned subsidiary of Energy Services, operates as a gas and water distribution contractor primarily in southern West Virginia. West Virginia Pipeline’s employees are non-union, and the company is managed independently from C.J. Hughes and Nitro. On March 22, 2021, the Company established a new wholly owned subsidiary, SQP Construction Group, Inc. (“SQP”), that operates as a general contractor primarily in West Virginia. SQP engages in the construction and renovation of buildings and other civil construction projects for state and local government agencies and commercial customers. As a general contractor, SQP manages the overall construction project and subcontracts most of the work. On June 30, 2021, the Company provided notice to all holders of the Company’s 6.0% Convertible Cumulative Perpetual Preferred Stock, Series A (“Series A Preferred Stock”) that, subject to applicable law and in accordance with the Company’s certificate of incorporation, the Company intended to redeem all 206 shares of the Series A Preferred Stock, at a price equal to $25,000 per preferred share plus all accrued and unpaid dividends whether or not declared up to and excluding the Redemption Date of September 1, 2021 (the “Redemption Price”). A portion of the 206 outstanding shares of Series A Preferred Stock were converted into common stock of the Company (“Common Stock”) at the election of each shareholder. The conversion formula for each share of the Series A Preferred Stock was $25,000 plus all accrued but unpaid dividends up to, but excluding, September 1, 2021 divided by the Conversion Price of $1.50 . Cash was issued in lieu of fractional shares at a rate of $1.50 multiplied by the fractional share rounded to the nearest cent. On October 6, 2021, the Company’s transfer agent completed the redemption, which resulted in the issuance of 2,626,492 new shares of the Company’s common stock, the issuance of 317,500 common shares that were included in Series A Preferred Stock units, and cash redemption payments of $1.3 million. The Company’s total outstanding common shares after redemption was 16,247,898 as of October 6, 2021. The Company’s stock is quoted under the symbol “ESOA” on the OTCQB marketplace operated by the OTC Markets Group. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Sep. 30, 2021 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: Revenue Recognition 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 materials are installed. The costs of uninstalled materials will be tracked separately within the Company’s accounting software. Pre-contract and bond costs, if required, and mobilization costs on projects are generally immaterial to the total value of the Company’s contracts and are expensed when 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, 2021, 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, its wholly owned subsidiaries West Virginia Pipeline, SQP and C.J. Hughes and its subsidiaries, Contractors Rental, Nitro, and Pinnacle. All significant intercompany accounts and transactions have been eliminated in the consolidation. Unless the context requires otherwise, references to Energy Services include Energy Services, West Virginia Pipeline, SQP, and C.J. Hughes and its subsidiaries. Use of Estimates and Assumptions The preparation of financial statements, in conformity with accounting principles generally accepted in the United States of America (“U.S.GAAP”), requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of 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 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 Level 2 Level 3 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 $10.0 million at September 30, 2021 was $9.9 million. The fair value of the aggregate principal amount of the Company’s fixed-rate debt of $15.8 million at September 30, 2020 was $14.8 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 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. 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 as of and for the years ended September 30, 2021 and 2020. 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 5 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 management believes are probable. 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 has to maintain a surety deposit to guarantee payments of premiums. The surety deposit had a balance of $2.1 million and $1.9 million as of September 30, 2021 and 2020, respectively, which is in “Prepaid expenses and other” on the Company’s Consolidated Balance Sheets. Should the captive experience severe losses over an extended period, it could increase the Company’s insurance expense or surety deposit required. Advertising All advertising costs are expensed as incurred. Total advertising expense was $55,000 and $72,000 for the years ended September 30, 2021 and 2020, respectively. Stock Compensation Plans The Company has issued restricted stock under its Long-Term Incentive Plan; however, there were no issuances in fiscal years 2021 or 2020. The Company accounts for its equity-based compensation as prescribed by U.S. GAAP 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 “Selling and administrative expenses” 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, 2018. The Company follows the liability method of accounting for income taxes in accordance with U.S. GAAP. 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, 2021. 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 members that are employed by the Company. 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 recognizes 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 January 2017, the FASB issued ASU 2017-04, “ Intangibles-Goodwill and Other Simplifying the Test for Goodwill Impairment On October 28, 2021, the FASB released ASU 2021-08, “Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers” entities they are effective for fiscal years, including interim periods within those fiscal years, beginning after December 15, 2023. Entities should apply the amendments prospectively to business combinations that occur after the effective date. Early adoption is permitted, including in any interim period, for public business entities for periods for which financial statements have not yet been issued, and for all other entities for periods for which financial statements have not yet been made available for issuance. Subsequent Events On October 6, 2021, the Company’s transfer agent completed the previously mentioned Series A Preferred Stock redemption, which resulted in the issuance of 2,626,492 new shares of the Company’s common stock, the issuance of 317,500 common shares that were included in Series A Preferred Stock units, and cash redemption payments of $1.3 million. The Company’s total outstanding common shares after redemption was 16,247,898 as of October 6, 2021. On November 9, 2021, the Company was awarded $5.8 million in a lawsuit related to construction services performed for a former customer (“Defendant”), none of which has been recognized in the Company’s financial statements. The Defendant has filed motions to request a new trial or a renewed judgement as a matter of law, which has not been ruled upon. The Company anticipates that a final judgement order will be issued in the first calendar quarter of 2022. A party to a civil lawsuit usually has 30 days from the entry of judgment to file a notice of appeal. On November 12, 2021, the Company received a withdrawal liability claim from a pension plan to which the Company made pension contributions for union construction employees performing covered work in a particular jurisdiction. The Company has not performed covered work in their jurisdiction since 2011; however, the Company disagrees with the withdrawal claim and believes it is covered by an exemption under federal law. The demand called for thirty-four quarterly installment payments of $41,000 starting December 15, 2021. The Company must comply with the demand under federal pension law; however, the Company firmly believes no withdrawal liability exists and plans to seek arbitration to resolve the matter. If successfully arbitrated, the Company expects to receive repayment of all installment payments made. Management has evaluated subsequent events through December 29, 2021, 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. |
REVENUE RECOGNITION
REVENUE RECOGNITION | 12 Months Ended |
Sep. 30, 2021 | |
REVENUE RECOGNITION | |
REVENUE RECOGNITION | 3. REVENUE RECOGNITION Our revenue is primarily derived from construction contracts that can span several quarters. We recognize revenue in accordance with Accounting Standards Codification (“ASC”) Topic 606, Revenue from Contracts with Customers (“ASC 606” or “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 could have, a significant effect on our profitability. 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. 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, 2021 | |
DISAGGREGATION OF REVENUE | |
DISAGGREGATION OF REVENUE | 4. 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 Gas & Water Distribution, Gas & Petroleum Transmission, Electrical, Mechanical, & General services and construction. The operating groups for the twelve months ended September 30, 2020, have been revised to reflect the current presentation. 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 twelve months ended September 30, 2021, and 2020: Twelve Months Ended September 30, 2021 Electrical, Gas & Water Gas & Petroleum Mechanical, Total revenue Distribution Transmission and General from contracts Lump sum contracts $ — $ — $ 37,691,770 $ 37,691,770 Unit price contracts 40,440,195 20,928,518 — 61,368,713 Cost plus and T&M contracts — 1,204,965 22,200,378 23,405,343 Total revenue from contracts $ 40,440,195 $ 22,133,483 $ 59,892,148 $ 122,465,826 Earned over time $ 26,244,396 $ 20,928,518 $ 58,796,767 $ 105,969,681 Earned at point in time 14,195,799 1,204,965 1,095,381 16,496,145 Total revenue from contracts $ 40,440,195 $ 22,133,483 $ 59,892,148 $ 122,465,826 Twelve Months Ended September 30, 2020 Electrical, Gas & Water Gas & Petroleum Mechanical, Total revenue Distribution Transmission and General from contracts Lump sum contracts $ — $ — $ 36,954,269 $ 36,954,269 Unit price contracts 24,488,259 42,927,779 — 67,416,038 Cost plus and T&M contracts — 116,428 14,707,705 14,824,133 Total revenue from contracts $ 24,488,259 $ 43,044,207 $ 51,661,974 $ 119,194,440 Earned over time $ 13,209,710 $ 42,927,779 $ 50,776,446 $ 106,913,935 Earned at point in time 11,278,549 116,428 885,528 12,280,505 Total revenue from contracts $ 24,488,259 $ 43,044,207 $ 51,661,974 $ 119,194,440 |
CONTRACT BALANCES
CONTRACT BALANCES | 12 Months Ended |
Sep. 30, 2021 | |
CONTRACT BALANCES | |
CONTRACT BALANCES | 5. CONTRACT BALANCES The Company’s accounts receivable consists of amounts that have been billed to customers and collateral is generally not required. Most of the Company’s contracts have monthly billing terms; however, billing terms for some are based on project completion. Payment terms are generally 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 twelve months ended September 30, 2021, we recognized revenue of $4.8 million that was included in the contract liability balance at September 30, 2020. Accounts receivable-trade, net of allowance for doubtful accounts, retentions receivable, contract assets and contract liabilities consisted of the following: September 30, 2020 September 30, 2021 Change Accounts receivable-trade, net of allowance for doubtful accounts $ 18,176,679 $ 21,022,207 $ 2,845,528 Contract assets Cost and estimated earnings in excess of billings $ 6,545,863 $ 8,730,402 $ 2,184,539 Contract liabilities Billings in excess of cost and estimated earnings $ 4,851,900 $ 3,153,290 $ (1,698,610) |
PERFORMANCE OBLIGATIONS
PERFORMANCE OBLIGATIONS | 12 Months Ended |
Sep. 30, 2021 | |
PERFORMANCE OBLIGATIONS | |
PERFORMANCE OBLIGATIONS | 6. PERFORMANCE OBLIGATIONS For the year ended September 30, 2021, we recognized revenue of $430,000 as a result of changes in contract transaction price related to performance obligations that were satisfied prior to September 30, 2020. The changes in contract transaction price were from items such as executed or estimated change orders, and unresolved contract modifications and claims. At September 30, 2021, the Company had $38.4 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, 2021 | |
ALLOWANCE FOR DOUBTFUL ACCOUNTS | |
ALLOWANCE FOR DOUBTFUL ACCOUNTS | 7. ALLOWANCE FOR DOUBTFUL ACCOUNTS Activity in the Company’s allowance for doubtful accounts consists of the following: Year Ended September 30, 2021 2020 Balance at beginning of year $ 70,310 $ 70,310 Charged to expense — — Deductions for uncollectible receivables written off, net of recoveries — — Balance at end of year $ 70,310 $ 70,310 |
UNCOMPLETED CONTRACTS
UNCOMPLETED CONTRACTS | 12 Months Ended |
Sep. 30, 2021 | |
UNCOMPLETED CONTRACTS | |
UNCOMPLETED CONTRACTS | 8. UNCOMPLETED CONTRACTS Costs and estimated earnings in excess of billings on uncompleted contracts are included in contract assets on the Consolidated Balance Sheets. 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, 2021 2020 Costs incurred on contracts in progress $ 64,903,618 $ 74,996,405 Estimated earnings, net of estimated losses 13,280,334 16,067,668 78,183,952 91,064,073 Less billings to date 72,606,840 89,370,110 $ 5,577,112 $ 1,693,963 Costs and estimated earnings in excess of billed on uncompleted contracts $ 8,730,402 $ 6,545,863 Less billings in excess of costs and estimated earnings on uncompleted contracts 3,153,290 4,851,900 $ 5,577,112 $ 1,693,963 The Company’s unaudited backlog at September 30, 2021, and September 30, 2020, was $72.2 million and $63.8 million, respectively. |
CLAIMS
CLAIMS | 12 Months Ended |
Sep. 30, 2021 | |
CLAIMS | |
CLAIMS | 9. CLAIMS The Company does not have any claims receivable as of September 30, 2021 and 2020. Claims receivable is a component of contract assets. |
PROPERTY, PLANT AND EQUIPMENT
PROPERTY, PLANT AND EQUIPMENT | 12 Months Ended |
Sep. 30, 2021 | |
PROPERTY, PLANT AND EQUIPMENT | |
PROPERTY, PLANT AND EQUIPMENT | 10. PROPERTY, PLANT AND EQUIPMENT Property, plant and equipment consist of the following: Year Ended September 30, 2021 2020 Land $ 2,748,532 $ 2,571,575 Buildings and leasehold improvements 8,194,827 5,921,587 Operating equipment and vehicles 48,941,730 44,030,879 Office equipment, furniture and fixtures 948,297 800,802 Assets not yet in service 312,319 — 61,145,705 53,324,843 Less accumulated depreciation 38,195,686 36,933,129 Property, plant and equipment, net $ 22,950,019 $ 16,391,714 |
SHORT-TERM DEBT
SHORT-TERM DEBT | 12 Months Ended |
Sep. 30, 2021 | |
SHORT-TERM DEBT | |
SHORT-TERM DEBT | 11. SHORT-TERM DEBT Short-term debt consists of the following: On August 3, 2021, the Company received a one-year extension on its line of credit (“Operating Line of credit (2021)”) effective June 28, 2021. The $15.0 million revolving line of credit has 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%. Based on the borrowing base calculation, the Company was able to borrow up to $12.2 million as of September 30, 2021. The Company had $4.5 million in borrowings on the line of credit, leaving $7.7 million available on the line of credit as of September 30, 2021. The interest rate at September 30, 2021, was 4.99%. Based on the borrowing base calculation, the Company was able to borrow up to $11.1 million as of September 30, 2020. The Company had no borrowings on the line of credit, as of September 30, 2020. The interest rate at September 30, 2020, was 4.99%. 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. 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 (2021) at September 30, 2021 except for the debt service coverage ratio, for which the Company obtained a waiver from its lender. 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. The Company makes a down payment in January and finances the remaining premium amount over ten monthly payments. In January 2021, the Company financed $3.2 million in insurance premiums. At September 30, 2021, the remaining balance of the insurance premiums was $540,000. |
SHORT-TERM AND LONG-TERM DEBT
SHORT-TERM AND LONG-TERM DEBT | 12 Months Ended |
Sep. 30, 2021 | |
SHORT-TERM AND LONG-TERM DEBT | |
SHORT-TERM AND LONG-TERM DEBT | 12. SHORT-TERM AND LONG-TERM DEBT A summary of short-term and long-term debt as of September 30, 2021 and 2020 is as follows: 2021 2020 Line of credit payable to bank, monthly interest at 4.99%, final payment due by June 28, 2022, guaranteed by certain directors of the Company. $ 4,500,000 $ — Term note payable to United Bank, WV Pipeline acquisition, due in monthly installments of $64,853 interest at 4.25%, final payment due by March 25, 2026, secured by receivables and equipment, guaranteed by certain directors of the Company. 3,183,549 — Notes payable to finance companies, due in monthly installments totaling $70,062 at September 30, 2021 and $44,781 at September 30, 2020, including interest ranging from 0.00% to 6.03%, final payments due October 2021 through August 2026, secured by equipment. 1,066,580 1,334,566 Note payable to finance company for insurance premiums financed, due in monthly installments totaling $272,000 in FY 2021 and $254,922 in FY 2020, including interest rate at 3.50%, final payment made November 2020. 540,250 509,843 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. 919,017 967,665 Notes payable to bank, due in monthly installments totaling $11,602, including interest at 4.25%, final payment due November 2025 secured by building and property, guaranteed by certain directors of the Company. 530,750 644,172 Notes payable to bank for $9.8 million in Paycheck Protection Program ("PPP") loan funds. Forgiven in FY 2021. — 9,839,100 Notes payable to bank, due in monthly installments totaling $98,865, including interest at 4.99%, final payment due September 2022 secured by equipment, guaranteed by certain directors of the Company. 872,452 1,983,911 Notes payable to bank, due in monthly installments totaling $46,482, including interest at 5.00%, final payment made September 2021 secured by equipment, guaranteed by certain directors of the Company. — 493,191 Notes payable to David Bolton and Daniel Bolton, $3.0 million discounted by $150,000, due in annual installments totaling $500,000, including interest at 3.25% on the $3.0 million note which equates to 5.35% on the carrying value of the note, final payment due December 31, 2026, unsecured 2,850,000 — Notes payable to bank, interest at 4.25% of outstanding balance due in monthly installments between January 2021 and January 2022. Note payments due in monthly installments totaling $68,073, including interest at 4.25%, beginning February 2022 with final payment due September 2026, secured by equipment, guaranteed by certain directors of the Company. 3,000,000 — Total debt 17,462,598 15,772,448 Less current maturities 8,441,824 4,538,743 Total long term debt $ 9,020,774 $ 11,233,705 During fiscal year 2021, the Company received notice that the Small Business Administration (“SBA”) had granted forgiveness of the $9.8 million of PPP borrowings and the SBA repaid the lending institution in full. The forgiveness was recorded as “other non-operating income” for the fiscal year ended September 30, 2021. At September 30, 2021, future expected payments due on short-term and long-term debt are as follows: 2022 $ 8,441,824 2023 2,152,652 2024 2,215,516 2025 2,278,581 2026 1,739,495 Thereafter 634,530 $ 17,462,598 |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Sep. 30, 2021 | |
INCOME TAXES | |
INCOME TAXES | 13. INCOME TAXES The components of income taxes are as follows: Year Ended September 30, 2021 2020 Federal Current $ (187,829) $ 634,539 Deferred 165,108 257,160 Total (22,721) 891,699 State Current (52,977) 178,955 Deferred 46,569 72,532 Total (6,408) 251,487 Total income tax (benefit) expense $ (29,129) $ 1,143,186 The effective income tax rate for the fiscal year ended September 30, 2021, was (.32%) During fiscal year 2021, the Company received notice that the SBA had granted forgiveness in full of the $9.8 million of PPP borrowings. The forgiveness was recorded as “other non-operating income” for the fiscal year ended September 30, 2021. According to the Coronavirus Aid, Relief, and Economic Security Act passed by Congress in March 2020, PPP loan forgiveness is not taxable. In accordance with the Consolidated Appropriations Act, 2021, the Company’s PPP related expenditures in fiscal year 2020 were considered deductible expenses for federal income tax purposes. The PPP forgiveness had a significant impact on the effective income tax rate for the fiscal year ended September 30, 2021, as taxable income was decreased by $9.8 million. The Company would have had an $800,000 loss before income taxes without the PPP loan forgiveness. Per diem paid to employees on construction projects and entertainment expenses are only partially deductible from taxable income and can have a significant impact on the effective tax rate. For the fiscal years ended September 30, 2021, and 2020, the non-deductible portion of per diem and entertainment expenses resulted in an approximate increase in taxable income of $515,000 and $530,000, respectively. The provision for income taxes was computed by applying a federal rate of 21.0% and a state rate of 6.0%to income before tax for fiscal years 2021 and 2020. The meals, a component of per diem paid to employees on construction projects, is not fully tax deductible and creates a permanent tax difference. The impact on the effective tax rate for meals and other was computed as 5.7% and 5.0% for fiscal years 2021 and 2020, respectively. The Company is expecting to receive approximately a $250,000, (2.8)% effective, fiscal year 2021 federal income tax credit related to a solar installation project at its Nitro, WV facility. The non-taxable effect of the PPP loan forgiveness is approximately $2.7 million, or effectively (30.22)%. Year Ended September 30, 2021 2020 Statutory rate 21.00 % 21.00 % State income taxes 6.00 % 6.00 % Meals and other 5.70 % 5.00 % Credit from solar installation project (2.80) % 0.00 % PPP loan forgiveness (30.22) % 0.00 % Effective tax rate (0.32) % 32.00 % Deferred 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. At September 30, 2021, the Company expects all net operating loss carryforwards to be realized in the near future. The income tax effects of temporary differences giving rise to the deferred tax assets and liabilities are as follows: Year Ended September 30, 2021 2020 Deferred tax liabilities Property and equipment $ 4,883,398 $ 2,746,331 Other 37,582 — Total deferred tax liabilities $ 4,920,980 $ 2,746,331 Deferred tax assets Other $ 358,400 $ 490,816 Net operating loss carryforward 2,529,147 — Total deferred tax assets $ 2,887,547 $ 490,816 Total net deferred tax liabilities $ 2,033,433 $ 2,255,515 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, 2021 | |
EARNINGS PER SHARE | |
EARNINGS PER SHARE | 14. EARNINGS PER SHARE Earnings per share for the years ended September 30, 2021, and 2020 are as follow: Twelve Months Ended Twelve Months Ended September 30, September 30, 2021 2020 Net income $ 9,097,255 $ 2,433,017 Dividends on preferred stock 284,238 309,000 Income available to common shareholders $ 8,813,017 $ 2,124,017 Weighted average shares outstanding-basic 13,621,406 13,804,835 Weighted average shares outstanding-diluted 16,988,424 17,238,168 Earnings per share available to common shareholders $ 0.647 $ 0.154 Earnings per share available to common shareholders-diluted $ 0.519 $ 0.123 |
STOCK PURCHASE PLAN
STOCK PURCHASE PLAN | 12 Months Ended |
Sep. 30, 2021 | |
STOCK PURCHASE PLAN | |
STOCK PURCHASE PLAN | 15. STOCK PURCHASE PLAN 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, 2021. 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 expired on August 26, 2020. The Company suspended the stock repurchase program on April 27, 2020. Accordingly, there were no repurchases in the Company’s fourth fiscal quarter in 2020. The program resulted in the repurchase of 312,522 shares through September 30, 2020. The Company did not repurchase any stock during the three and twelve months ended September 30, 2021. |
LONG TERM INCENTIVE PLAN
LONG TERM INCENTIVE PLAN | 12 Months Ended |
Sep. 30, 2021 | |
LONG TERM INCENTIVE PLAN | |
LONG TERM INCENTIVE PLAN | 16. LONG TERM INCENTIVE PLAN At the annual meeting of shareholders on August 11, 2010, the shareholders approved the Energy Services of America Corporation Long Term Incentive Plan, to provide employees and directors of the Company with additional incentives to promote the growth and performance of the Company. The ten-year plan expired as of August 2020 with no awards in the fiscal year ended September 30, 2020. All stock grants have vested or been forfeited as of September 30, 2021. |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 12 Months Ended |
Sep. 30, 2021 | |
RELATED PARTY TRANSACTIONS | |
RELATED PARTY TRANSACTIONS | 17. RELATED PARTY TRANSACTIONS The Company intends that all transactions between the Company and its 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 On December 31, 2020, West Virginia Pipeline Acquisition Company , later renamed West Virginia Pipeline, Inc., entered into a $3.0 million sellers' note agreement with David and Daniel Bolton for the remaining purchase price of West Virginia Pipeline, Inc. For the purchase price allocation, the $3.0 million note had a fair value of $2.85 million. As part of the $6.35 million fair acquisition, the acquirer paid $3.5 million in cash in addition to the note. The unsecured five-year term note requires equal annual payments with a fixed interest rate of 3.25% on the $3.0 million sellers’ note, which equates to 5.35% on the carrying value of the note. As of September 30, 2021, the Company has made interest payments of $73,000 and expensed $22,500 in accreted interest. The Company made the first installment payment in December 2021. Other than mentioned above, there were no new material related party transactions entered into during the fiscal year ended September 30, 2021. 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 in consolidation. |
LEASE OBLIGATIONS
LEASE OBLIGATIONS | 12 Months Ended |
Sep. 30, 2021 | |
LEASE OBLIGATIONS | |
LEASE OBLIGATIONS | 18. LEASE OBLIGATIONS 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 are 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. It is the Company’s preference to acquire equipment needed for long-term use through purchase, by cash or finance. For equipment needed on a short-term basis, the Company will enter into short-term rental agreements with the equipment provider where the agreement is cancellable at any time. The adoption of ASU 2016-02 had an immaterial impact on the Company’s consolidated financial statements. The Company leases office space for SQP Construction Group for $1,500 per month. The lease, signed on March 25, 2021, is for a period of two years with five one-year renewals available immediately following the end of the base term. Rental terms for the option periods shall be negotiated and agree mutually between the parties and shall not exceed five percent increases to rent, if any. The lease is expensed monthly and not treated as a right-to-use asset as it does not have a material impact on the Company's consolidated financial statements. 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, which is included in cost of goods sold on the Consolidated Income Statement, was $3.6 million and $4.2 million for fiscal years ended September 30, 2021, and 2020, respectively. |
MAJOR CUSTOMERS
MAJOR CUSTOMERS | 12 Months Ended |
Sep. 30, 2021 | |
MAJOR CUSTOMERS | |
MAJOR CUSTOMERS | 19. MAJOR CUSTOMERS The tables below present customers that represent 10.0% or more of the Company’s revenue or accounts receivable net of retention as of or for the fiscal years ended September 30, 2021, and 2020: Revenue FY 2021 FY 2020 TransCanada Corporation 11.0 % 24.7 % Marathon Petroleum * 11.1 % All other 89.0 % 64.2 % Total 100.0 % 100.0 % * Less than 10.0% and included in “All other” if applicable Accounts receivable net of retention FY 2021 FY 2020 Kentucky American Water 16.3 % * TransCanada Corporation 13.2 % 18.4 % Marathon Petroleum * 19.7 % Shimizu North American LLC * 11.9 % All other 70.5 % 50.0 % Total 100.0 % 100.0 % * Less than 10.0% and included in “All other” if applicable 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, 2021 | |
RETIREMENT AND EMPLOYEE BENEFIT PLANS | |
RETIREMENT AND EMPLOYEE BENEFIT PLANS | 20. RETIREMENT AND EMPLOYEE BENEFIT PLANS In 2021 and 2020, C. J. Hughes 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 does not exceed the indexed dollar amount set by the Internal Revenue Service which was $19,500 for 2021 and 2020. C. J. Hughes matches $0.25 on each dollar contributed up to 6% of eligible wages. Effective January 1, 2010, Energy Services 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 $19,500 for 2021 and 2020. 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 2021 or 2020 plan year. Energy Services and its wholly owned subsidiaries contributed $365,000 and $271,000, respectively, for the fiscal years ended September 30, 2021, and 2020 to the Plan. In fiscal year 2021, a one-time $651,000 Qualified Non-Elective Contribution (“QNEC”) was made to the Plan attributable to the 2021 Plan year to adjust Plan participant’s balances due to a third-party administrator’s actions. 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 2020 2019 Implemented (2) 2021 2020 2019 Imposed Agreement Central States, Southeast and Southwest Areas Pension Fund 36-6044243/001 Red Red Implemented $ — $ — $ 189,644 no Various Employer-Teamsters Local Nos. 175 and 505 55-6021850/001 Red Red Implemented — — 169,483 no Various Laborers National Pension Fund 75-1280827/001 Red Red Implemented 394,563 356,548 1,202,310 no Various National Automatic Sprinkler Industry Pension Fund 52-6054620/001 Red Red Implemented 121,133 124,863 131,141 no Various Iron Workers District Council of Southern Ohio &Vicinity Pension Trust 31-6038516/001 Yellow Yellow Implemented 160,367 86,998 122,683 no Various Carpenters Pension Fund of WV 55-6027998/001 Red Red Implemented 281,568 542,659 746,743 no Various Plumbers & Pipefitters National Pension Fund 52-6152779/001 Yellow Yellow Implemented 616,568 594,364 786,940 no Various Sheet Metal Workers' National Pension Fund 52-6112463/001 Yellow Yellow Implemented 538,286 169,018 125,982 no Various Sheet Metal Workers Local Pension Fund 34-6666753/001 Red Red Implemented — — 71,143 no Various Plumbers and Pipefitters Local 152 Pension Fund 55-6029095/001 Red Red Implemented 2,492 — 19,511 no Various All Other Green Green 2,783,713 1,480,139 4,941,831 no Various $ 4,898,691 $ 3,354,588 $ 8,507,411 (1) The most recent PPA zone status available in 2021 and 2020 is the the plan’s year-end during 2020 and 2019, 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. On November 12, 2021, the Company received a withdrawal liability claim from a pension plan to which the Company made pension contributions for union construction employees performing covered work in a particular jurisdiction. The Company has not performed covered work in their jurisdiction since 2011; however, the Company disagrees with the withdrawal claim and believes it is covered by an exemption under federal law. The demand called for thirty-four quarterly installment payments of $41,000 starting December 15, 2021. The Company must comply with the demand under federal pension law; however, the Company firmly believes no withdrawal liability exists and plans to seek arbitration to resolve the matter. If successfully arbitrated, the Company expects to receive repayment of all installment payments made. |
CREDIT RISK
CREDIT RISK | 12 Months Ended |
Sep. 30, 2021 | |
CREDIT RISK | |
CREDIT RISK | 21. CREDIT RISK 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, 2021, the Company had $6.3 million of uninsured deposits. The Company performs periodic credit evaluations of its customer’s financial condition and generally does not require collateral. Consequently, the Company is subject to potential credit risk related to business and economic factors that would affect these companies. However, the Company generally has certain statutory lien rights with respect to services provided. Credit losses consistently have been within management’s expectations. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Sep. 30, 2021 | |
COMMITMENTS AND CONTINGENCIES | |
COMMITMENTS AND CONTINGENCIES | 22. COMMITMENTS AND CONTINGENCIES 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, 2021, the Company had $30.1 million in performance bonds outstanding. In fiscal year 2021, the Company received notification of forgiveness on the $9.8 million in PPP loans received in calendar year 2020. The Company must retain PPP loan documentation in its files for six years after the date of forgiveness. The Company believes it meets the SBA's certification requirement based on its limited access to capital, weakened business operations during the pandemic and small market value. The Company's shares of common stock do not trade on a national exchange. However, no assurance can be given as to the outcome if the SBA re-evaluates the Company's loan certification. The SBA could determine that the Company does not qualify in whole or in part for loan forgiveness. In addition, it is unknown what type of penalties could be assessed against the Company if the SBA disagrees with the Company's certification. The Company could be required to repay its PPP Loans. Any penalties in addition to the potential repayment of the PPP Loans could negatively impact the Company's business, financial condition and results of operations and prospects. |
ACQUISITIONS
ACQUISITIONS | 12 Months Ended |
Sep. 30, 2021 | |
ACQUISITIONS | |
ACQUISITIONS | 23. ACQUISITIONS On December 31, 2020, West Virginia Pipeline Acquisition Company, later renamed West Virginia Pipeline, Inc., entered into a $3.0 million sellers’ note agreement with David and Daniel Bolton for the remaining purchase price of West Virginia Pipeline, Inc. For the purchase price allocation, the $3.0 million note had a fair value of $2.85 million. As part of the $6.35 million fair acquisition, the acquirer paid $3.5 million in cash in addition to the note. The unsecured five-year term note requires equal annual payments with a fixed interest rate of 3.25% on the $3.0 million sellers’ note, which equates to 5.35% on the carrying value of the note. Previous owners, David Bolton and Daniel Bolton, have continued their roles as President and Vice President, respectively. The Company incurred approximately $150,000 in expenses related to the acquisition. West Virginia Pipeline earned revenues of $5.7 million for the fiscal year ended September 30, 2021. On April 30, 2021, the Company’s Nitro subsidiary completed an asset purchase of Revolt Energy, Inc. (“Revolt Energy”), a solar installation company located in Nitro, WV for $150,000 in cash. After the acquisition, Revolt Energy began to operate as a division within Nitro. Revolt Energy earned revenues of $675,000 for the fiscal year ended September 30, 2021. Based on management's preliminary valuation of tangible and intangible assets acquired and liabilities assumed, the West Virginia Pipeline and Revolt Energy acquisitions resulted in goodwill of $4.2 million and intangible assets of $400,000. A subsequent independent, third-party fair value evaluation analysis of the purchase allocations resulted in the reclassification of $2.3 million from goodwill to intangible assets, primarily customer relationships. At September 30, 2021, goodwill and intangible assets were $1.8 million and $2.4 million, respectively. The purchase price allocation of each acquisition is allocated in the tables below: West Virginia Pipeline Goodwill $ 1,814,317 Equipment and vehicles 1,565,000 Building 220,243 Land 64,757 Customer relationships 2,209,724 Tradename 263,584 Non-competes 83,203 Cash received in acquisition 250,000 Debt assumed in acquisition (120,828) Purchase price $ 6,350,000 Revolt Energy Equipment and vehicles $ 135,000 Non-compete agreement 100,000 Debt assumed in acquisition (85,000) Purchase price $ 150,000 Topic 805 requires an acquirer that is a public entity to present the revenue and earnings of the combined entity as though the business combination that occurred during the current year had occurred as of the beginning of the comparable prior annual reporting period if comparative financial statements are presented. Of the two acquisitions in fiscal year 2021, the Company only regards the West Virginia Pipeline acquisition as being material to its financial performance. The Company finds this information related to Revolt Energy impracticable to provide for the periods presented due to the lack of availability of meaningful financial statements that comply with U.S. Generally Accepted Accounting Principles. Below is the unaudited consolidated pro forma statement of income for the Company had the West Virginia Pipeline acquisition occurred at the beginning of fiscal year ended September 30, 2020: 2020 Revenue $ 125,320,477 Cost of revenues 109,636,178 Gross profit 15,684,299 Selling and administrative expenses 10,649,838 Income from operations 5,034,461 Other income (expense) Interest income 53,830 Other nonoperating expense (239,551) Interest expense (700,926) Gain on sale of equipment 579,326 (307,321) Income before income taxes 4,727,140 Income tax expense 1,453,939 Net income 3,273,201 Dividends on preferred stock 309,000 Net income available to common shareholders $ 2,964,201 Weighted average shares outstanding-basic 13,804,835 Weighted average shares-diluted 17,238,168 Earnings per share available to common shareholders $ 0.215 Earnings per share-diluted available to common shareholders $ 0.172 West Virginia Pipeline’s past financial performance, experienced management and workforce and relationships with its customers made it an attractive acquisition for the Company. Going back to 1963, West Virginia Pipeline has a long history of excellent work performance in southern West Virginia. Their geographic region compliments Energy Services as the two companies rarely competed for work previously. The generated by the acquisition is largely the result of the high return on capital generated by West Virginia Pipeline. While West Virginia Pipeline will be managed separately from the Company’s other union operations, it is expected that relationships built by all the companies will help provide new opportunities within the organization. Revolt Energy’s reputation as a leading solar installation company in southern West Virginia made it an attractive acquisition and greatly eased Nitro’s entry into the growing solar installation industry. Prior to the acquisition, Revolt installed the solar panels and subcontracted the electrical work. The acquisition will now allow Nitro to self-perform the complete solar installation process. Nitro’s and Revolt’s common union affiliations align to give Nitro flexibility on both solar installations and commercial electrical work. |
GOODWILL AND INTANGIBLE ASSETS
GOODWILL AND INTANGIBLE ASSETS | 12 Months Ended |
Sep. 30, 2021 | |
GOODWILL AND INTANGIBLE ASSETS | |
GOODWILL AND INTANGIBLE ASSETS | 24. GOODWILL AND INTANGIBLE ASSETS The Company follows the guidance of ASC 350-20-35-3 Intangibles-Goodwill and Other (Topic 350) A table of the Company's goodwill is below: Fiscal Year 2021 2020 Beginning balance — — Acquired 1,814,317 — Impairment — — Ending balance $ 1,814,317 $ — A table of the Company’s intangible assets subject to amortization at September 30, 2021, is below: Remaining Life at Amortization and September 30, Original Accumulated Impairment FY Net Book Intangible assets: 2021 Cost Amortization 2021 Value West Virginia Pipeline Customer Relationships 111 months $ 2,209,724 $ 165,725 $ 165,725 $ 2,043,999 Tradename 111 months 263,584 19,772 19,772 243,812 Non-competes 51 months 83,203 31,202 31,202 52,001 Revolt Energy Non-compete 31 months 100,000 13,889 13,889 86,111 Total intangible assets $ 2,656,511 $ 230,588 $ 230,588 $ 2,425,923 The amortization on identifiable intangible assets for fiscal years ended September 30, 2021, and 2020 was $230,588 and $0, respectively. Amortization expense associated with the identifiable intangible assets is expected to be as follows: Fiscal year Amortization Expense 2022 $ 322,272 2023 291,065 2024 266,771 2025 247,332 2026 247,332 After 1,051,151 Total $ 2,425,923 |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Sep. 30, 2021 | |
SUBSEQUENT EVENTS | |
SUBSEQUENT EVENTS | 25. SUBSEQUENT EVENTS On October 6, 2021, the Company’s transfer agent completed the previously mentioned Series A Preferred Stock redemption, which resulted in the issuance of 2,626,492 new shares of the Company’s common stock, the issuance of 317,500 common shares that were included in Series A Preferred Stock units, and cash redemption payments of $1.3 million. The Company’s total outstanding common shares after redemption was 16,247,898 as of October 6, 2021. On November 9, 2021, the Company was awarded $5.8 million in a lawsuit related to construction services performed for a former customer (“Defendant”), none of which has been recognized in the Company’s financial statements. The Defendant has filed motions to request a new trial or a renewed judgement as a matter of law, which has not been ruled upon. The Company anticipates that a final judgement order will be issued in the first calendar quarter of 2022. A party to a civil lawsuit usually has 30 days from the entry of judgment to file a notice of appeal. On November 12, 2021, the Company received a withdrawal liability claim from a pension plan to which the Company made pension contributions for union construction employees performing covered work in a particular jurisdiction. The Company has not performed covered work in their jurisdiction since 2011; however, the Company disagrees with the withdrawal claim and believes it is covered by an exemption under federal law. The demand called for thirty-four quarterly installment payments of $41,000 starting December 15, 2021. The Company must comply with the demand under federal pension law ; however, the Company firmly believes no withdrawal liability exists and plans to seek arbitration to resolve the matter. If successfully arbitrated, the Company expects to receive repayment of all installment payments made. Management has evaluated subsequent events through December 29, 2021, 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. |
QUARTERLY FINANCIAL DATA (UNAUD
QUARTERLY FINANCIAL DATA (UNAUDITED) | 12 Months Ended |
Sep. 30, 2021 | |
QUARTERLY FINANCIAL DATA (UNAUDITED) | |
QUARTERLY FINANCIAL DATA (UNAUDITED) | 26. QUARTERLY FINANCIAL DATA (UNAUDITED) Quarterly financial data for fiscal years ended September 30, 2021 and 2020 are summarized below: 2021 First Quarter Second Quarter Third Quarter Fourth Quarter Total Revenue $ 32,009,796 $ 25,605,412 $ 25,285,951 $ 39,564,667 $ 122,465,826 Operating (loss) income (752,771) (1,950,390) (502,253) 2,312,792 (892,622) Net (loss) income (647,662) (1,311,471) 9,313,240 1,743,148 9,097,255 Dividends on preferred stock 77,250 77,250 77,250 52,488 284,238 Net (loss) income available to common shareholders $ (724,912) $ (1,388,721) $ 9,235,990 $ 1,690,660 $ 8,813,017 Weighted-basic shares outstanding 13,621,406 13,624,406 13,621,406 13,621,406 13,621,406 Weighted-diluted shares outstanding 13,621,406 13,624,406 17,089,722 16,791,641 16,988,424 (Loss) earnings per share available to common shareholders $ (0.053) $ (0.102) $ 0.678 $ 0.124 $ 0.647 (Loss) earnings per share-diluted available to common shareholders $ (0.053) $ (0.102) $ 0.540 $ 0.101 $ 0.519 2020 First Quarter Second Quarter Third Quarter Fourth Quarter Total Revenue $ 25,843,307 $ 18,072,400 $ 30,762,725 $ 44,516,008 $ 119,194,440 Operating (loss) income (239,030) (2,275,040) 294,036 5,889,687 3,669,653 Net (loss) income (74,114) (1,694,611) (17,955) 4,219,697 2,433,017 Dividends on preferred stock 77,250 77,250 77,250 77,250 309,000 Net (loss) income available to common shareholders $ (151,364) $ (1,771,861) $ (95,205) $ 4,142,447 $ 2,124,017 Weighted-basic shares outstanding 13,911,610 13,783,546 13,627,293 13,621,406 13,804,835 Weighted-diluted shares outstanding 13,911,610 13,783,546 13,627,293 17,054,739 17,238,168 (Loss) earnings per share available to common shareholders $ (0.011) $ (0.129) $ (0.007) $ 0.304 $ 0.154 (Loss) earnings per share-diluted available to common shareholders $ (0.011) $ (0.129) $ (0.007) $ 0.243 $ 0.123 Quarterly revenue data for fiscal years ended September 30, 2021 and 2020 are summarized below: 2021 First Quarter Pct. Of Total Second Quarter Pct. Of Total Third Quarter Pct. Of Total Fourth Quarter Pct. Of Total Total Pct. Of Total Gas and Water Distribution $ 7,131,639 22.3 % $ 8,605,138 33.6 % $ 11,780,986 46.6 % $ 12,922,432 32.7 % $ 40,440,195 33.0 % Gas and Petroleum Transmission 8,692,592 27.2 % 3,683,012 14.4 % 1,967,647 7.8 % 7,790,232 19.7 % 22,133,483 18.1 % Electrical, Mechanical, and General 16,185,565 50.6 % 13,317,262 52.0 % 11,537,318 45.6 % 18,852,003 47.6 % 59,892,148 48.9 % $ 32,009,796 100.0 % $ 25,605,412 100.0 % $ 25,285,951 100.0 % $ 39,564,667 100.0 % $ 122,465,826 100.0 % 2020 First Quarter Second Quarter Third Quarter Fourth Quarter Total Pct. Of Total Gas and Water Distribution $ 7,847,793 30.4 % $ 4,391,358 24.3 % $ 4,867,185 15.8 % $ 7,381,923 16.6 % $ 24,488,259 20.5 % Gas and Petroleum Transmission 5,083,071 19.7 % 3,160,749 17.5 % 12,936,299 42.1 % 21,864,088 49.1 % 43,044,207 36.1 % Electrical, Mechanical, and General 12,912,443 50.0 % 10,520,293 58.2 % 12,959,241 42.1 % 15,269,997 34.3 % 51,661,974 43.3 % $ 25,843,307 100.0 % $ 18,072,400 100.0 % $ 30,762,725 100.0 % $ 44,516,008 100.0 % $ 119,194,440 100.0 % Change First Quarter Pct. Change Second Quarter Pct. Change Third Quarter Pct. Change Fourth Quarter Pct. Change Total Pct. Change Gas and Water Distribution $ (716,154) (9.1) % $ 4,213,780 96.0 % $ 6,913,801 142.0 % $ 5,540,509 75.1 % $ 15,951,936 65.1 % Gas and Petroleum Transmission 3,609,521 71.0 % 522,263 16.5 % (10,968,652) (84.8) % (14,073,856) (64.4) % (20,910,724) (48.6) % Electrical, Mechanical, and General 3,273,122 25.3 % 2,796,969 26.6 % (1,421,923) (11.0) % 3,582,006 23.5 % 8,230,174 15.9 % $ 6,166,489 23.9 % $ 7,533,012 41.7 % $ (5,476,774) (17.8) % $ (4,951,341) (11.1) % $ 3,271,386 2.7 % |
CONDENSED PARENT COMPANY ONLY F
CONDENSED PARENT COMPANY ONLY FINANCIAL STATEMENTS | 12 Months Ended |
Sep. 30, 2021 | |
CONDENSED PARENT COMPANY ONLY FINANCIAL STATEMENTS | |
CONDENSED PARENT COMPANY ONLY FINANCIAL STATEMENTS | 27. CONDENSED PARENT COMPANY ONLY FINANCIAL STATEMENTS ENERGY SERVICES OF AMERICA CORPORATION (Parent Only) BALANCE SHEETS As of September 30, 2021 and 2020 Assets 2021 2020 Current assets Cash and cash equivalents $ 1,703,803 $ 177,485 Other receivables 536,326 (307) Prepaid expenses and other 3,082,577 3,145,446 Total current assets 5,322,706 3,322,624 Property, plant and equipment, at cost 265,200 265,200 less accumulated depreciation (243,491) (236,690) 21,709 28,510 Deferred tax asset 2,575,843 139,307 Investment in subsidiaries 44,260,423 34,090,094 Total assets $ 52,180,681 $ 37,580,535 Liabilities and shareholders' equity Current liabilities Current maturities of long-term debt $ 1,455,595 $ 1,728,120 Lines of credit and short term borrowings 5,040,250 509,843 Accounts payable 138,091 23,771 Accrued expenses and other current liabilities 242,005 — Total current liabilities 6,875,941 2,261,734 Due to subsidiaries 7,720,087 8,061,618 Long-term debt, less current maturities 2,947,607 1,433,154 Total liabilities 17,543,635 11,756,506 Shareholders' equity Preferred stock, $.0001 par value Authorized 1,000,000 shares, 206 issued at September 30, 2021 and 2020 — — Common stock, $.0001 par value Authorized 50,000,000 shares 14,839,836 issued and 13,621,406 outstanding 2020 1,484 1,484 Treasury stock, 1,218,430 shares at September 30, 2021, and 2020 (122) (122) Additional paid in capital 60,670,699 60,670,699 Retained deficit (26,035,015) (34,848,032) Total shareholders' equity 34,637,046 25,824,029 Total liabilities and shareholders' equity $ 52,180,681 $ 37,580,535 ENERGY SERVICES OF AMERICA CORPORATION (Parent Only) STATEMENTS OF INCOME For the years ended September 30, 2021 and 2020 2021 2020 Selling and administrative expenses $ 1,875,879 $ 1,502,575 Net loss from operations before taxes (1,875,879) (1,502,575) Other nonoperating income expense 103,211 (189) PPP loan forgiveness 40,000 — Interest income 286,533 53,249 Interest expense (222,675) (341,312) Interest allocation to subsidiaries 209,162 323,258 Net loss before tax (1,459,648) (1,467,569) Income tax benefit (386,574) (341,054) Net loss from parent (1,073,074) (1,126,515) Equity in undistributed income income of subsidiaries 10,170,329 3,559,532 Net income 9,097,255 2,433,017 Dividends on preferred stock (284,238) (309,000) Net income available to common shareholders $ 8,813,017 $ 2,124,017 Weighted average shares outstanding- basic 13,621,406 13,804,835 Weighted average shares-diluted 16,988,424 17,238,168 Net earnings per share-basic available to common shareholders $ 0.647 $ 0.154 Net earnings per share-diluted available to common shareholders $ 0.519 $ 0.123 ENERGY SERVICES OF AMERICA CORPORATION (Parent Only) CONSOLIDATED STATEMENTS OF CASH FLOWS For the years ended September 30, 2021 and 2020 2021 2020 Cash flows form operating activities: Net income $ 9,097,255 $ 2,433,017 Adjustments to reconcile net income to net cash (used in) provided by operating activities Provision for deferred taxes (411,574) 78,786 Depreciation expense 6,801 6,062 Equity in undistributed income of subsidiaries (10,170,329) (3,559,532) Paycheck Protection Program loan forgiveness (40,000) — Advances (to) from subsidiaries 2,658,469 16,404,900 Changes in: Decrease (increase) in prepaid expenses 62,869 (733,098) Increase in other receivable (536,633) — Increase (decrease) in accounts payable 114,320 (45,150) Decrease in accrued expenses and other current liabilities (1,782,957) (98,843) Net cash (used in) provided by operating activities (1,001,779) 14,486,142 Cash flows from investing activities: Investment in property & equipment — (16,798) Net cash used in investing activities — (16,798) Cash flows from financing activities: Borrowings on lines of credit and short-term debt, net of (repayments) 4,530,407 (3,515,867) Principal payments on long term debt (1,718,072) (9,628,578) Dividends on common stock — (696,117) Preferred dividends paid (284,238) (309,000) Treasury stock purchased by company — (268,228) Proceeds from long term debt — 66,100 Net cash provided by (used in) financing activities 2,528,097 (14,351,690) Increase in cash and cash equivalents 1,526,318 117,654 Cash beginning of period 177,485 59,831 Cash end of period $ 1,703,803 $ 177,485 Supplemental schedule of noncash investing and financing activities: Insurance premiums financed $ 3,213,402 $ 3,063,543 Accrued dividends on preferred stock $ 52,488 $ 77,250 Supplemental disclosures of cash flows information: Cash paid during the year for: Interest $ 222,675 $ 486,246 Income taxes $ 251,996 $ 785,630 |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Sep. 30, 2021 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Revenue Recognition | Revenue Recognition 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 materials are installed. The costs of uninstalled materials will be tracked separately within the Company’s accounting software. Pre-contract and bond costs, if required, and mobilization costs on projects are generally immaterial to the total value of the Company’s contracts and are expensed when 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, 2021, 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, its wholly owned subsidiaries West Virginia Pipeline, SQP and C.J. Hughes and its subsidiaries, Contractors Rental, Nitro, and Pinnacle. All significant intercompany accounts and transactions have been eliminated in the consolidation. Unless the context requires otherwise, references to Energy Services include Energy Services, West Virginia Pipeline, SQP, and C.J. Hughes and its 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 (“U.S.GAAP”), requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of 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 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 Level 2 Level 3 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 $10.0 million at September 30, 2021 was $9.9 million. The fair value of the aggregate principal amount of the Company’s fixed-rate debt of $15.8 million at September 30, 2020 was $14.8 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 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. 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 as of and for the years ended September 30, 2021 and 2020. 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 5 |
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 management believes are probable. 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 has to maintain a surety deposit to guarantee payments of premiums. The surety deposit had a balance of $2.1 million and $1.9 million as of September 30, 2021 and 2020, respectively, which is in “Prepaid expenses and other” on the Company’s Consolidated Balance Sheets. Should the captive experience severe losses over an extended period, it could increase the Company’s insurance expense or surety deposit required. |
Advertising | Advertising All advertising costs are expensed as incurred. Total advertising expense was $55,000 and $72,000 for the years ended September 30, 2021 and 2020, 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 2021 or 2020. The Company accounts for its equity-based compensation as prescribed by U.S. GAAP 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 “Selling and administrative expenses” 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, 2018. The Company follows the liability method of accounting for income taxes in accordance with U.S. GAAP. 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, 2021. |
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 members that are employed by the Company. 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 recognizes 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 January 2017, the FASB issued ASU 2017-04, “ Intangibles-Goodwill and Other Simplifying the Test for Goodwill Impairment On October 28, 2021, the FASB released ASU 2021-08, “Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers” entities they are effective for fiscal years, including interim periods within those fiscal years, beginning after December 15, 2023. Entities should apply the amendments prospectively to business combinations that occur after the effective date. Early adoption is permitted, including in any interim period, for public business entities for periods for which financial statements have not yet been issued, and for all other entities for periods for which financial statements have not yet been made available for issuance. |
Subsequent Events | Subsequent Events On October 6, 2021, the Company’s transfer agent completed the previously mentioned Series A Preferred Stock redemption, which resulted in the issuance of 2,626,492 new shares of the Company’s common stock, the issuance of 317,500 common shares that were included in Series A Preferred Stock units, and cash redemption payments of $1.3 million. The Company’s total outstanding common shares after redemption was 16,247,898 as of October 6, 2021. On November 9, 2021, the Company was awarded $5.8 million in a lawsuit related to construction services performed for a former customer (“Defendant”), none of which has been recognized in the Company’s financial statements. The Defendant has filed motions to request a new trial or a renewed judgement as a matter of law, which has not been ruled upon. The Company anticipates that a final judgement order will be issued in the first calendar quarter of 2022. A party to a civil lawsuit usually has 30 days from the entry of judgment to file a notice of appeal. On November 12, 2021, the Company received a withdrawal liability claim from a pension plan to which the Company made pension contributions for union construction employees performing covered work in a particular jurisdiction. The Company has not performed covered work in their jurisdiction since 2011; however, the Company disagrees with the withdrawal claim and believes it is covered by an exemption under federal law. The demand called for thirty-four quarterly installment payments of $41,000 starting December 15, 2021. The Company must comply with the demand under federal pension law; however, the Company firmly believes no withdrawal liability exists and plans to seek arbitration to resolve the matter. If successfully arbitrated, the Company expects to receive repayment of all installment payments made. Management has evaluated subsequent events through December 29, 2021, 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. |
DISAGGREGATION OF REVENUE (Tabl
DISAGGREGATION OF REVENUE (Tables) | 12 Months Ended |
Sep. 30, 2021 | |
DISAGGREGATION OF REVENUE | |
Schedule of disaggregation of revenue | Twelve Months Ended September 30, 2021 Electrical, Gas & Water Gas & Petroleum Mechanical, Total revenue Distribution Transmission and General from contracts Lump sum contracts $ — $ — $ 37,691,770 $ 37,691,770 Unit price contracts 40,440,195 20,928,518 — 61,368,713 Cost plus and T&M contracts — 1,204,965 22,200,378 23,405,343 Total revenue from contracts $ 40,440,195 $ 22,133,483 $ 59,892,148 $ 122,465,826 Earned over time $ 26,244,396 $ 20,928,518 $ 58,796,767 $ 105,969,681 Earned at point in time 14,195,799 1,204,965 1,095,381 16,496,145 Total revenue from contracts $ 40,440,195 $ 22,133,483 $ 59,892,148 $ 122,465,826 Twelve Months Ended September 30, 2020 Electrical, Gas & Water Gas & Petroleum Mechanical, Total revenue Distribution Transmission and General from contracts Lump sum contracts $ — $ — $ 36,954,269 $ 36,954,269 Unit price contracts 24,488,259 42,927,779 — 67,416,038 Cost plus and T&M contracts — 116,428 14,707,705 14,824,133 Total revenue from contracts $ 24,488,259 $ 43,044,207 $ 51,661,974 $ 119,194,440 Earned over time $ 13,209,710 $ 42,927,779 $ 50,776,446 $ 106,913,935 Earned at point in time 11,278,549 116,428 885,528 12,280,505 Total revenue from contracts $ 24,488,259 $ 43,044,207 $ 51,661,974 $ 119,194,440 |
CONTRACT BALANCES (Tables)
CONTRACT BALANCES (Tables) | 12 Months Ended |
Sep. 30, 2021 | |
CONTRACT BALANCES | |
Schedule of accounts receivable-trade, net of allowance for doubtful accounts, retainages receivable, contract assets and contract liabilities | September 30, 2020 September 30, 2021 Change Accounts receivable-trade, net of allowance for doubtful accounts $ 18,176,679 $ 21,022,207 $ 2,845,528 Contract assets Cost and estimated earnings in excess of billings $ 6,545,863 $ 8,730,402 $ 2,184,539 Contract liabilities Billings in excess of cost and estimated earnings $ 4,851,900 $ 3,153,290 $ (1,698,610) |
ALLOWANCE FOR DOUBTFUL ACCOUN_2
ALLOWANCE FOR DOUBTFUL ACCOUNTS (Tables) | 12 Months Ended |
Sep. 30, 2021 | |
ALLOWANCE FOR DOUBTFUL ACCOUNTS | |
Schedule of allowance for doubtful accounts receivable | Year Ended September 30, 2021 2020 Balance at beginning of year $ 70,310 $ 70,310 Charged to expense — — Deductions for uncollectible receivables written off, net of recoveries — — Balance at end of year $ 70,310 $ 70,310 |
UNCOMPLETED CONTRACTS (Tables)
UNCOMPLETED CONTRACTS (Tables) | 12 Months Ended |
Sep. 30, 2021 | |
UNCOMPLETED CONTRACTS | |
Schedule of costs, estimated earnings and billings on uncompleted contracts | Year Ended September 30, 2021 2020 Costs incurred on contracts in progress $ 64,903,618 $ 74,996,405 Estimated earnings, net of estimated losses 13,280,334 16,067,668 78,183,952 91,064,073 Less billings to date 72,606,840 89,370,110 $ 5,577,112 $ 1,693,963 Costs and estimated earnings in excess of billed on uncompleted contracts $ 8,730,402 $ 6,545,863 Less billings in excess of costs and estimated earnings on uncompleted contracts 3,153,290 4,851,900 $ 5,577,112 $ 1,693,963 |
PROPERTY, PLANT AND EQUIPMENT (
PROPERTY, PLANT AND EQUIPMENT (Tables) | 12 Months Ended |
Sep. 30, 2021 | |
PROPERTY, PLANT AND EQUIPMENT | |
Schedule of property, plant and equipment | Year Ended September 30, 2021 2020 Land $ 2,748,532 $ 2,571,575 Buildings and leasehold improvements 8,194,827 5,921,587 Operating equipment and vehicles 48,941,730 44,030,879 Office equipment, furniture and fixtures 948,297 800,802 Assets not yet in service 312,319 — 61,145,705 53,324,843 Less accumulated depreciation 38,195,686 36,933,129 Property, plant and equipment, net $ 22,950,019 $ 16,391,714 |
SHORT-TERM AND LONG-TERM DEBT (
SHORT-TERM AND LONG-TERM DEBT (Tables) | 12 Months Ended |
Sep. 30, 2021 | |
SHORT-TERM AND LONG-TERM DEBT | |
Schedule of summary of short-term and long-term debt | 2021 2020 Line of credit payable to bank, monthly interest at 4.99%, final payment due by June 28, 2022, guaranteed by certain directors of the Company. $ 4,500,000 $ — Term note payable to United Bank, WV Pipeline acquisition, due in monthly installments of $64,853 interest at 4.25%, final payment due by March 25, 2026, secured by receivables and equipment, guaranteed by certain directors of the Company. 3,183,549 — Notes payable to finance companies, due in monthly installments totaling $70,062 at September 30, 2021 and $44,781 at September 30, 2020, including interest ranging from 0.00% to 6.03%, final payments due October 2021 through August 2026, secured by equipment. 1,066,580 1,334,566 Note payable to finance company for insurance premiums financed, due in monthly installments totaling $272,000 in FY 2021 and $254,922 in FY 2020, including interest rate at 3.50%, final payment made November 2020. 540,250 509,843 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. 919,017 967,665 Notes payable to bank, due in monthly installments totaling $11,602, including interest at 4.25%, final payment due November 2025 secured by building and property, guaranteed by certain directors of the Company. 530,750 644,172 Notes payable to bank for $9.8 million in Paycheck Protection Program ("PPP") loan funds. Forgiven in FY 2021. — 9,839,100 Notes payable to bank, due in monthly installments totaling $98,865, including interest at 4.99%, final payment due September 2022 secured by equipment, guaranteed by certain directors of the Company. 872,452 1,983,911 Notes payable to bank, due in monthly installments totaling $46,482, including interest at 5.00%, final payment made September 2021 secured by equipment, guaranteed by certain directors of the Company. — 493,191 Notes payable to David Bolton and Daniel Bolton, $3.0 million discounted by $150,000, due in annual installments totaling $500,000, including interest at 3.25% on the $3.0 million note which equates to 5.35% on the carrying value of the note, final payment due December 31, 2026, unsecured 2,850,000 — Notes payable to bank, interest at 4.25% of outstanding balance due in monthly installments between January 2021 and January 2022. Note payments due in monthly installments totaling $68,073, including interest at 4.25%, beginning February 2022 with final payment due September 2026, secured by equipment, guaranteed by certain directors of the Company. 3,000,000 — Total debt 17,462,598 15,772,448 Less current maturities 8,441,824 4,538,743 Total long term debt $ 9,020,774 $ 11,233,705 |
Schedule of maturities of long-term debt | 2022 $ 8,441,824 2023 2,152,652 2024 2,215,516 2025 2,278,581 2026 1,739,495 Thereafter 634,530 $ 17,462,598 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Sep. 30, 2021 | |
INCOME TAXES | |
Schedule of components of income taxes | Year Ended September 30, 2021 2020 Federal Current $ (187,829) $ 634,539 Deferred 165,108 257,160 Total (22,721) 891,699 State Current (52,977) 178,955 Deferred 46,569 72,532 Total (6,408) 251,487 Total income tax (benefit) expense $ (29,129) $ 1,143,186 |
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, 2021 2020 Statutory rate 21.00 % 21.00 % State income taxes 6.00 % 6.00 % Meals and other 5.70 % 5.00 % Credit from solar installation project (2.80) % 0.00 % PPP loan forgiveness (30.22) % 0.00 % Effective tax rate (0.32) % 32.00 % |
Schedule of income tax effects to deferred tax assets and liabilities | Year Ended September 30, 2021 2020 Deferred tax liabilities Property and equipment $ 4,883,398 $ 2,746,331 Other 37,582 — Total deferred tax liabilities $ 4,920,980 $ 2,746,331 Deferred tax assets Other $ 358,400 $ 490,816 Net operating loss carryforward 2,529,147 — Total deferred tax assets $ 2,887,547 $ 490,816 Total net deferred tax liabilities $ 2,033,433 $ 2,255,515 |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 12 Months Ended |
Sep. 30, 2021 | |
EARNINGS PER SHARE | |
Schedule to compute earnings per share | Twelve Months Ended Twelve Months Ended September 30, September 30, 2021 2020 Net income $ 9,097,255 $ 2,433,017 Dividends on preferred stock 284,238 309,000 Income available to common shareholders $ 8,813,017 $ 2,124,017 Weighted average shares outstanding-basic 13,621,406 13,804,835 Weighted average shares outstanding-diluted 16,988,424 17,238,168 Earnings per share available to common shareholders $ 0.647 $ 0.154 Earnings per share available to common shareholders-diluted $ 0.519 $ 0.123 |
MAJOR CUSTOMERS (Tables)
MAJOR CUSTOMERS (Tables) | 12 Months Ended |
Sep. 30, 2021 | |
MAJOR CUSTOMERS | |
Schedule of Company's revenue or accounts receivable net | Revenue FY 2021 FY 2020 TransCanada Corporation 11.0 % 24.7 % Marathon Petroleum * 11.1 % All other 89.0 % 64.2 % Total 100.0 % 100.0 % * Less than 10.0% and included in “All other” if applicable Accounts receivable net of retention FY 2021 FY 2020 Kentucky American Water 16.3 % * TransCanada Corporation 13.2 % 18.4 % Marathon Petroleum * 19.7 % Shimizu North American LLC * 11.9 % All other 70.5 % 50.0 % Total 100.0 % 100.0 % * Less than 10.0% and included in “All other” if applicable |
RETIREMENT AND EMPLOYEE BENEF_2
RETIREMENT AND EMPLOYEE BENEFIT PLANS (Tables) | 12 Months Ended |
Sep. 30, 2021 | |
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 2020 2019 Implemented (2) 2021 2020 2019 Imposed Agreement Central States, Southeast and Southwest Areas Pension Fund 36-6044243/001 Red Red Implemented $ — $ — $ 189,644 no Various Employer-Teamsters Local Nos. 175 and 505 55-6021850/001 Red Red Implemented — — 169,483 no Various Laborers National Pension Fund 75-1280827/001 Red Red Implemented 394,563 356,548 1,202,310 no Various National Automatic Sprinkler Industry Pension Fund 52-6054620/001 Red Red Implemented 121,133 124,863 131,141 no Various Iron Workers District Council of Southern Ohio &Vicinity Pension Trust 31-6038516/001 Yellow Yellow Implemented 160,367 86,998 122,683 no Various Carpenters Pension Fund of WV 55-6027998/001 Red Red Implemented 281,568 542,659 746,743 no Various Plumbers & Pipefitters National Pension Fund 52-6152779/001 Yellow Yellow Implemented 616,568 594,364 786,940 no Various Sheet Metal Workers' National Pension Fund 52-6112463/001 Yellow Yellow Implemented 538,286 169,018 125,982 no Various Sheet Metal Workers Local Pension Fund 34-6666753/001 Red Red Implemented — — 71,143 no Various Plumbers and Pipefitters Local 152 Pension Fund 55-6029095/001 Red Red Implemented 2,492 — 19,511 no Various All Other Green Green 2,783,713 1,480,139 4,941,831 no Various $ 4,898,691 $ 3,354,588 $ 8,507,411 (1) The most recent PPA zone status available in 2021 and 2020 is the the plan’s year-end during 2020 and 2019, 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. On November 12, 2021, the Company received a withdrawal liability claim from a pension plan to which the Company made pension contributions for union construction employees performing covered work in a particular jurisdiction. The Company has not performed covered work in their jurisdiction since 2011; however, the Company disagrees with the withdrawal claim and believes it is covered by an exemption under federal law. The demand called for thirty-four quarterly installment payments of $41,000 starting December 15, 2021. The Company must comply with the demand under federal pension law; however, the Company firmly believes no withdrawal liability exists and plans to seek arbitration to resolve the matter. If successfully arbitrated, the Company expects to receive repayment of all installment payments made. |
ACQUISITIONS (Tables)
ACQUISITIONS (Tables) | 12 Months Ended |
Sep. 30, 2021 | |
Asset Acquisition [Line Items] | |
Schedule of consolidated pro forma statement of income | Below is the unaudited consolidated pro forma statement of income for the Company had the West Virginia Pipeline acquisition occurred at the beginning of fiscal year ended September 30, 2020: 2020 Revenue $ 125,320,477 Cost of revenues 109,636,178 Gross profit 15,684,299 Selling and administrative expenses 10,649,838 Income from operations 5,034,461 Other income (expense) Interest income 53,830 Other nonoperating expense (239,551) Interest expense (700,926) Gain on sale of equipment 579,326 (307,321) Income before income taxes 4,727,140 Income tax expense 1,453,939 Net income 3,273,201 Dividends on preferred stock 309,000 Net income available to common shareholders $ 2,964,201 Weighted average shares outstanding-basic 13,804,835 Weighted average shares-diluted 17,238,168 Earnings per share available to common shareholders $ 0.215 Earnings per share-diluted available to common shareholders $ 0.172 |
West Virginia Pipeline | |
Asset Acquisition [Line Items] | |
Schedule of allocation of purchase price | Goodwill $ 1,814,317 Equipment and vehicles 1,565,000 Building 220,243 Land 64,757 Customer relationships 2,209,724 Tradename 263,584 Non-competes 83,203 Cash received in acquisition 250,000 Debt assumed in acquisition (120,828) Purchase price $ 6,350,000 |
Revolt Energy | |
Asset Acquisition [Line Items] | |
Schedule of allocation of purchase price | Equipment and vehicles $ 135,000 Non-compete agreement 100,000 Debt assumed in acquisition (85,000) Purchase price $ 150,000 |
GOODWILL AND INTANGIBLE ASSETS
GOODWILL AND INTANGIBLE ASSETS (Tables) | 12 Months Ended |
Sep. 30, 2021 | |
GOODWILL AND INTANGIBLE ASSETS | |
Summary of changes in goodwill | Fiscal Year 2021 2020 Beginning balance — — Acquired 1,814,317 — Impairment — — Ending balance $ 1,814,317 $ — |
Schedule of intangible assets subject to amortization | The Company follows the guidance of ASC 350-20-35-3 Intangibles-Goodwill and Other (Topic 350) A table of the Company's goodwill is below: Fiscal Year 2021 2020 Beginning balance — — Acquired 1,814,317 — Impairment — — Ending balance $ 1,814,317 $ — A table of the Company’s intangible assets subject to amortization at September 30, 2021, is below: Remaining Life at Amortization and September 30, Original Accumulated Impairment FY Net Book Intangible assets: 2021 Cost Amortization 2021 Value West Virginia Pipeline Customer Relationships 111 months $ 2,209,724 $ 165,725 $ 165,725 $ 2,043,999 Tradename 111 months 263,584 19,772 19,772 243,812 Non-competes 51 months 83,203 31,202 31,202 52,001 Revolt Energy Non-compete 31 months 100,000 13,889 13,889 86,111 Total intangible assets $ 2,656,511 $ 230,588 $ 230,588 $ 2,425,923 |
Schedule of amortization on identifiable intangible assets | Fiscal year Amortization Expense 2022 $ 322,272 2023 291,065 2024 266,771 2025 247,332 2026 247,332 After 1,051,151 Total $ 2,425,923 |
QUARTERLY FINANCIAL DATA (UNA_2
QUARTERLY FINANCIAL DATA (UNAUDITED) (Tables) | 12 Months Ended |
Sep. 30, 2021 | |
QUARTERLY FINANCIAL DATA (UNAUDITED) | |
Schedule of quarterly financial information | 2021 First Quarter Second Quarter Third Quarter Fourth Quarter Total Revenue $ 32,009,796 $ 25,605,412 $ 25,285,951 $ 39,564,667 $ 122,465,826 Operating (loss) income (752,771) (1,950,390) (502,253) 2,312,792 (892,622) Net (loss) income (647,662) (1,311,471) 9,313,240 1,743,148 9,097,255 Dividends on preferred stock 77,250 77,250 77,250 52,488 284,238 Net (loss) income available to common shareholders $ (724,912) $ (1,388,721) $ 9,235,990 $ 1,690,660 $ 8,813,017 Weighted-basic shares outstanding 13,621,406 13,624,406 13,621,406 13,621,406 13,621,406 Weighted-diluted shares outstanding 13,621,406 13,624,406 17,089,722 16,791,641 16,988,424 (Loss) earnings per share available to common shareholders $ (0.053) $ (0.102) $ 0.678 $ 0.124 $ 0.647 (Loss) earnings per share-diluted available to common shareholders $ (0.053) $ (0.102) $ 0.540 $ 0.101 $ 0.519 2020 First Quarter Second Quarter Third Quarter Fourth Quarter Total Revenue $ 25,843,307 $ 18,072,400 $ 30,762,725 $ 44,516,008 $ 119,194,440 Operating (loss) income (239,030) (2,275,040) 294,036 5,889,687 3,669,653 Net (loss) income (74,114) (1,694,611) (17,955) 4,219,697 2,433,017 Dividends on preferred stock 77,250 77,250 77,250 77,250 309,000 Net (loss) income available to common shareholders $ (151,364) $ (1,771,861) $ (95,205) $ 4,142,447 $ 2,124,017 Weighted-basic shares outstanding 13,911,610 13,783,546 13,627,293 13,621,406 13,804,835 Weighted-diluted shares outstanding 13,911,610 13,783,546 13,627,293 17,054,739 17,238,168 (Loss) earnings per share available to common shareholders $ (0.011) $ (0.129) $ (0.007) $ 0.304 $ 0.154 (Loss) earnings per share-diluted available to common shareholders $ (0.011) $ (0.129) $ (0.007) $ 0.243 $ 0.123 2021 First Quarter Pct. Of Total Second Quarter Pct. Of Total Third Quarter Pct. Of Total Fourth Quarter Pct. Of Total Total Pct. Of Total Gas and Water Distribution $ 7,131,639 22.3 % $ 8,605,138 33.6 % $ 11,780,986 46.6 % $ 12,922,432 32.7 % $ 40,440,195 33.0 % Gas and Petroleum Transmission 8,692,592 27.2 % 3,683,012 14.4 % 1,967,647 7.8 % 7,790,232 19.7 % 22,133,483 18.1 % Electrical, Mechanical, and General 16,185,565 50.6 % 13,317,262 52.0 % 11,537,318 45.6 % 18,852,003 47.6 % 59,892,148 48.9 % $ 32,009,796 100.0 % $ 25,605,412 100.0 % $ 25,285,951 100.0 % $ 39,564,667 100.0 % $ 122,465,826 100.0 % 2020 First Quarter Second Quarter Third Quarter Fourth Quarter Total Pct. Of Total Gas and Water Distribution $ 7,847,793 30.4 % $ 4,391,358 24.3 % $ 4,867,185 15.8 % $ 7,381,923 16.6 % $ 24,488,259 20.5 % Gas and Petroleum Transmission 5,083,071 19.7 % 3,160,749 17.5 % 12,936,299 42.1 % 21,864,088 49.1 % 43,044,207 36.1 % Electrical, Mechanical, and General 12,912,443 50.0 % 10,520,293 58.2 % 12,959,241 42.1 % 15,269,997 34.3 % 51,661,974 43.3 % $ 25,843,307 100.0 % $ 18,072,400 100.0 % $ 30,762,725 100.0 % $ 44,516,008 100.0 % $ 119,194,440 100.0 % Change First Quarter Pct. Change Second Quarter Pct. Change Third Quarter Pct. Change Fourth Quarter Pct. Change Total Pct. Change Gas and Water Distribution $ (716,154) (9.1) % $ 4,213,780 96.0 % $ 6,913,801 142.0 % $ 5,540,509 75.1 % $ 15,951,936 65.1 % Gas and Petroleum Transmission 3,609,521 71.0 % 522,263 16.5 % (10,968,652) (84.8) % (14,073,856) (64.4) % (20,910,724) (48.6) % Electrical, Mechanical, and General 3,273,122 25.3 % 2,796,969 26.6 % (1,421,923) (11.0) % 3,582,006 23.5 % 8,230,174 15.9 % $ 6,166,489 23.9 % $ 7,533,012 41.7 % $ (5,476,774) (17.8) % $ (4,951,341) (11.1) % $ 3,271,386 2.7 % |
CONDENSED PARENT COMPANY ONLY_2
CONDENSED PARENT COMPANY ONLY FINANCIAL STATEMENTS (Tables) | 12 Months Ended |
Sep. 30, 2021 | |
CONDENSED PARENT COMPANY ONLY FINANCIAL STATEMENTS | |
Schedule of balance sheet | ENERGY SERVICES OF AMERICA CORPORATION (Parent Only) BALANCE SHEETS As of September 30, 2021 and 2020 Assets 2021 2020 Current assets Cash and cash equivalents $ 1,703,803 $ 177,485 Other receivables 536,326 (307) Prepaid expenses and other 3,082,577 3,145,446 Total current assets 5,322,706 3,322,624 Property, plant and equipment, at cost 265,200 265,200 less accumulated depreciation (243,491) (236,690) 21,709 28,510 Deferred tax asset 2,575,843 139,307 Investment in subsidiaries 44,260,423 34,090,094 Total assets $ 52,180,681 $ 37,580,535 Liabilities and shareholders' equity Current liabilities Current maturities of long-term debt $ 1,455,595 $ 1,728,120 Lines of credit and short term borrowings 5,040,250 509,843 Accounts payable 138,091 23,771 Accrued expenses and other current liabilities 242,005 — Total current liabilities 6,875,941 2,261,734 Due to subsidiaries 7,720,087 8,061,618 Long-term debt, less current maturities 2,947,607 1,433,154 Total liabilities 17,543,635 11,756,506 Shareholders' equity Preferred stock, $.0001 par value Authorized 1,000,000 shares, 206 issued at September 30, 2021 and 2020 — — Common stock, $.0001 par value Authorized 50,000,000 shares 14,839,836 issued and 13,621,406 outstanding 2020 1,484 1,484 Treasury stock, 1,218,430 shares at September 30, 2021, and 2020 (122) (122) Additional paid in capital 60,670,699 60,670,699 Retained deficit (26,035,015) (34,848,032) Total shareholders' equity 34,637,046 25,824,029 Total liabilities and shareholders' equity $ 52,180,681 $ 37,580,535 |
Schedule of statement of income | ENERGY SERVICES OF AMERICA CORPORATION (Parent Only) STATEMENTS OF INCOME For the years ended September 30, 2021 and 2020 2021 2020 Selling and administrative expenses $ 1,875,879 $ 1,502,575 Net loss from operations before taxes (1,875,879) (1,502,575) Other nonoperating income expense 103,211 (189) PPP loan forgiveness 40,000 — Interest income 286,533 53,249 Interest expense (222,675) (341,312) Interest allocation to subsidiaries 209,162 323,258 Net loss before tax (1,459,648) (1,467,569) Income tax benefit (386,574) (341,054) Net loss from parent (1,073,074) (1,126,515) Equity in undistributed income income of subsidiaries 10,170,329 3,559,532 Net income 9,097,255 2,433,017 Dividends on preferred stock (284,238) (309,000) Net income available to common shareholders $ 8,813,017 $ 2,124,017 Weighted average shares outstanding- basic 13,621,406 13,804,835 Weighted average shares-diluted 16,988,424 17,238,168 Net earnings per share-basic available to common shareholders $ 0.647 $ 0.154 Net earnings per share-diluted available to common shareholders $ 0.519 $ 0.123 |
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, 2021 and 2020 2021 2020 Cash flows form operating activities: Net income $ 9,097,255 $ 2,433,017 Adjustments to reconcile net income to net cash (used in) provided by operating activities Provision for deferred taxes (411,574) 78,786 Depreciation expense 6,801 6,062 Equity in undistributed income of subsidiaries (10,170,329) (3,559,532) Paycheck Protection Program loan forgiveness (40,000) — Advances (to) from subsidiaries 2,658,469 16,404,900 Changes in: Decrease (increase) in prepaid expenses 62,869 (733,098) Increase in other receivable (536,633) — Increase (decrease) in accounts payable 114,320 (45,150) Decrease in accrued expenses and other current liabilities (1,782,957) (98,843) Net cash (used in) provided by operating activities (1,001,779) 14,486,142 Cash flows from investing activities: Investment in property & equipment — (16,798) Net cash used in investing activities — (16,798) Cash flows from financing activities: Borrowings on lines of credit and short-term debt, net of (repayments) 4,530,407 (3,515,867) Principal payments on long term debt (1,718,072) (9,628,578) Dividends on common stock — (696,117) Preferred dividends paid (284,238) (309,000) Treasury stock purchased by company — (268,228) Proceeds from long term debt — 66,100 Net cash provided by (used in) financing activities 2,528,097 (14,351,690) Increase in cash and cash equivalents 1,526,318 117,654 Cash beginning of period 177,485 59,831 Cash end of period $ 1,703,803 $ 177,485 Supplemental schedule of noncash investing and financing activities: Insurance premiums financed $ 3,213,402 $ 3,063,543 Accrued dividends on preferred stock $ 52,488 $ 77,250 Supplemental disclosures of cash flows information: Cash paid during the year for: Interest $ 222,675 $ 486,246 Income taxes $ 251,996 $ 785,630 |
BUSINESS AND ORGANIZATION (Deta
BUSINESS AND ORGANIZATION (Details) - USD ($) $ / shares in Units, $ in Millions | Oct. 06, 2021 | Jun. 30, 2021 | Sep. 30, 2021 | Sep. 30, 2020 |
Common stock, shares outstanding | 13,621,406 | 13,621,406 | ||
Subsequent event | ||||
Common stock, shares outstanding | 16,247,898 | |||
Subsequent event | Common Stock | ||||
Common stock, issuance shares | 2,626,492 | |||
Series A Preferred Stock | ||||
Preferred stock, dividend rate | 6.00% | |||
Proposed redemption of shares (in shares) | 206 | |||
Proposed redemption of shares, per share | $ 25,000 | |||
Conversion Price | $ 1.50 | |||
Series A Preferred Stock | Subsequent event | ||||
Common stock, issuance shares | 317,500 | |||
common stock, issuance value | $ 1.3 |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Revenue Recognition and Fair Value Measurements (Details) - USD ($) $ in Millions | Sep. 30, 2021 | Sep. 30, 2020 |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||
Aggregate principal amount of fixed-rate debt | $ 10 | $ 15.8 |
Fair value of aggregate principal amount of debt | $ 9.9 | $ 14.8 |
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, 2021 | |
Building | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 39 years |
Minimum | |
Property, Plant and Equipment [Line Items] | |
Billing and payment term | 30 days |
Minimum | Operating equipment and vehicles | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | P5Y |
Minimum | Office equipment, furniture and fixtures | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | P5Y |
Maximum | |
Property, Plant and Equipment [Line Items] | |
Billing and payment term | 45 days |
Maximum | Operating equipment and vehicles | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 7 years |
Maximum | Office equipment, furniture and fixtures | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 7 years |
SUMMARY OF SIGNIFICANT ACCOUN_5
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Self-Insurance, Advertising (Details) - USD ($) | 12 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||
Surety deposit balance | $ 2,100,000 | $ 1,900,000 |
Advertising expense | $ 55,000 | $ 72,000 |
SUMMARY OF SIGNIFICANT ACCOUN_6
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Subsequent Events (Details) - USD ($) | Nov. 09, 2021 | Oct. 06, 2021 | Nov. 12, 2021 | Sep. 30, 2021 | Sep. 30, 2020 |
Subsequent Event [Line Items] | |||||
Common stock, shares outstanding | 13,621,406 | 13,621,406 | |||
Subsequent event | |||||
Subsequent Event [Line Items] | |||||
Common stock, shares outstanding | 16,247,898 | ||||
Lawsuit related to construction services | $ 5,800,000 | ||||
Installment payment of pension plan | $ 41,000 | ||||
Subsequent event | Common Stock | |||||
Subsequent Event [Line Items] | |||||
Common stock, issuance shares | 2,626,492 | ||||
Subsequent event | Series A Preferred Stock | |||||
Subsequent Event [Line Items] | |||||
Common stock, issuance shares | 317,500 | ||||
common stock, issuance value | $ 1,300,000 |
DISAGGREGATION OF REVENUE (Deta
DISAGGREGATION OF REVENUE (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||||||||
Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2021 | Sep. 30, 2020 | |
Disaggregation of Revenue [Line Items] | ||||||||||
Total revenue from contracts | $ 39,564,667 | $ 25,285,951 | $ 25,605,412 | $ 32,009,796 | $ 44,516,008 | $ 30,762,725 | $ 18,072,400 | $ 25,843,307 | $ 122,465,826 | $ 119,194,440 |
Earned over time | ||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||
Total revenue from contracts | 105,969,681 | 106,913,935 | ||||||||
Earned at point in time | ||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||
Total revenue from contracts | 16,496,145 | 12,280,505 | ||||||||
Lump sum contracts | ||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||
Total revenue from contracts | 37,691,770 | 36,954,269 | ||||||||
Unit price contracts | ||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||
Total revenue from contracts | 61,368,713 | 67,416,038 | ||||||||
Cost plus and T&M contracts | ||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||
Total revenue from contracts | 23,405,343 | 14,824,133 | ||||||||
Gas & Water Distribution | ||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||
Total revenue from contracts | 12,922,432 | 11,780,986 | 8,605,138 | 7,131,639 | 7,381,923 | 4,867,185 | 4,391,358 | 7,847,793 | 40,440,195 | 24,488,259 |
Gas & Water Distribution | Earned over time | ||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||
Total revenue from contracts | 26,244,396 | 13,209,710 | ||||||||
Gas & Water Distribution | Earned at point in time | ||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||
Total revenue from contracts | 14,195,799 | 11,278,549 | ||||||||
Gas & Water Distribution | Lump sum contracts | ||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||
Total revenue from contracts | 0 | 0 | ||||||||
Gas & Water Distribution | Unit price contracts | ||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||
Total revenue from contracts | 40,440,195 | 24,488,259 | ||||||||
Gas & Water Distribution | Cost plus and T&M contracts | ||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||
Total revenue from contracts | 0 | 0 | ||||||||
Gas & Petroleum Transmission | ||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||
Total revenue from contracts | 7,790,232 | 1,967,647 | 3,683,012 | 8,692,592 | 21,864,088 | 12,936,299 | 3,160,749 | 5,083,071 | 22,133,483 | 43,044,207 |
Gas & Petroleum Transmission | Earned over time | ||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||
Total revenue from contracts | 20,928,518 | 42,927,779 | ||||||||
Gas & Petroleum Transmission | Earned at point in time | ||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||
Total revenue from contracts | 1,204,965 | 116,428 | ||||||||
Gas & Petroleum Transmission | Lump sum contracts | ||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||
Total revenue from contracts | 0 | 0 | ||||||||
Gas & Petroleum Transmission | Unit price contracts | ||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||
Total revenue from contracts | 20,928,518 | 42,927,779 | ||||||||
Gas & Petroleum Transmission | Cost plus and T&M contracts | ||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||
Total revenue from contracts | 1,204,965 | 116,428 | ||||||||
Electrical, Mechanical, and General Member | ||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||
Total revenue from contracts | $ 18,852,003 | $ 11,537,318 | $ 13,317,262 | $ 16,185,565 | $ 15,269,997 | $ 12,959,241 | $ 10,520,293 | $ 12,912,443 | 59,892,148 | 51,661,974 |
Electrical, Mechanical, and General Member | Earned over time | ||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||
Total revenue from contracts | 58,796,767 | 50,776,446 | ||||||||
Electrical, Mechanical, and General Member | Earned at point in time | ||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||
Total revenue from contracts | 1,095,381 | 885,528 | ||||||||
Electrical, Mechanical, and General Member | Lump sum contracts | ||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||
Total revenue from contracts | 37,691,770 | 36,954,269 | ||||||||
Electrical, Mechanical, and General Member | Unit price contracts | ||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||
Total revenue from contracts | 0 | 0 | ||||||||
Electrical, Mechanical, and General Member | Cost plus and T&M contracts | ||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||
Total revenue from contracts | $ 22,200,378 | $ 14,707,705 |
CONTRACT BALANCES (Details)
CONTRACT BALANCES (Details) - USD ($) | 12 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
CONTRACT BALANCES | ||
Accounts receivable-trade, net of allowance for doubtful accounts | $ 21,022,207 | $ 18,176,679 |
Change in accounts receivable-trade, net of allowance for doubtful accounts | 2,845,528 | (3,431,633) |
Contract assets | ||
Cost and estimated earnings in excess of billings | 8,730,402 | 6,545,863 |
Change in cost and estimated earnings in excess of billings | 2,184,539 | (113,844) |
Contract liabilities | ||
Less billings in excess of costs and estimated earnings on uncompleted contracts | 3,153,290 | 4,851,900 |
Change in billings in excess of cost and estimated earnings | $ (1,698,610) | $ 1,396,612 |
CONTRACT BALANCES - Additional
CONTRACT BALANCES - Additional Information (Details) $ in Millions | 12 Months Ended |
Sep. 30, 2021USD ($) | |
CONTRACT BALANCES | |
Recognized revenue included in contract liability | $ 4.8 |
PERFORMANCE OBLIGATIONS (Detail
PERFORMANCE OBLIGATIONS (Details) | 12 Months Ended |
Sep. 30, 2021USD ($) | |
PERFORMANCE OBLIGATIONS | |
Recognized revenue | $ 430,000 |
Amount of remaining unsatisfied performance obligations | $ 38,400,000 |
ALLOWANCE FOR DOUBTFUL ACCOUN_3
ALLOWANCE FOR DOUBTFUL ACCOUNTS (Details) - USD ($) | 12 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Allowance for Doubtful Accounts Receivable [Roll Forward] | ||
Balance at beginning of year | $ 70,310 | $ 70,310 |
Charged to expense | 0 | 0 |
Deductions for uncollectible receivables written off, net of recoveries | 0 | 0 |
Balance at end of year | $ 70,310 | $ 70,310 |
UNCOMPLETED CONTRACTS - Summary
UNCOMPLETED CONTRACTS - Summary of costs, estimated earnings, and billings on uncompleted contracts (Details) - USD ($) | Sep. 30, 2021 | Sep. 30, 2020 |
UNCOMPLETED CONTRACTS | ||
Costs incurred on contracts in progress | $ 64,903,618 | $ 74,996,405 |
Estimated earnings, net of estimated losses | 13,280,334 | 16,067,668 |
Costs of uncompleted contracts including net estimated earnings | 78,183,952 | 91,064,073 |
Less billings to date | 72,606,840 | 89,370,110 |
Unbilled Contracts | 5,577,112 | 1,693,963 |
Costs and estimated earnings in excess of billed on uncompleted contracts | 8,730,402 | 6,545,863 |
Less billings in excess of costs and estimated earnings on uncompleted contracts | 3,153,290 | 4,851,900 |
Unbilled contracts receivable | $ 5,577,112 | $ 1,693,963 |
UNCOMPLETED CONTRACTS - Backlog
UNCOMPLETED CONTRACTS - Backlog (Details) - USD ($) $ in Millions | Sep. 30, 2021 | Sep. 30, 2020 |
UNCOMPLETED CONTRACTS | ||
Backlog | $ 72.2 | $ 63.8 |
PROPERTY, PLANT AND EQUIPMENT_2
PROPERTY, PLANT AND EQUIPMENT (Details) - USD ($) | Sep. 30, 2021 | Sep. 30, 2020 |
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, at cost | $ 61,145,705 | $ 53,324,843 |
Less accumulated depreciation | 38,195,686 | 36,933,129 |
Total fixed assets | 22,950,019 | 16,391,714 |
Land | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, at cost | 2,748,532 | 2,571,575 |
Buildings and leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, at cost | 8,194,827 | 5,921,587 |
Operating equipment and vehicles | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, at cost | 48,941,730 | 44,030,879 |
Office equipment, furniture and fixtures | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, at cost | 948,297 | $ 800,802 |
Assets not yet in service | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, at cost | $ 312,319 |
SHORT-TERM DEBT (Details)
SHORT-TERM DEBT (Details) - USD ($) | Jul. 30, 2020 | Jan. 31, 2020 | Sep. 30, 2021 | Sep. 30, 2020 |
Line of Credit Facility [Line Items] | ||||
Insurance policy amount | $ 3,200,000 | |||
Insurance policy premium outstanding | $ 540,000 | |||
United Bank, Inc. | 12.5 million component | ||||
Line of Credit Facility [Line Items] | ||||
Amount of loan covenants | 12,500,000 | |||
Financing agreement "Operating Line of Credit (2020)" | ||||
Line of Credit Facility [Line Items] | ||||
Line of credit | 4,500,000 | |||
Amount available to borrowing | $ 7,700,000 | |||
Financing agreement "Operating Line of Credit (2020)" | United Bank, Inc. | ||||
Line of Credit Facility [Line Items] | ||||
Interest Rate | 4.99% | 4.99% | ||
Amount of loan covenants | $ 12,500,000 | |||
Financing agreement Operating Line of Credit (2020) | ||||
Line of Credit Facility [Line Items] | ||||
Amount available to borrowing | 12,200,000 | |||
Financing agreement Operating Line of Credit (2020). | 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 | |||
Interest rate on line of credit | 4.99% | |||
Amount repaid against the line of credit | $ 11,100,000 | |||
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 To Be Measured Semi Annually | 2.0x | |||
Amount of minimum tangible net worth | $ 21,000,000 | |||
Traditional debt service coverage ratio | 2.0x | |||
Financing agreement Operating Line of Credit (2020). | United Bank, Inc. | 12.5 million component | ||||
Line of Credit Facility [Line Items] | ||||
Line of credit | $ 12,500,000 | |||
Financing agreement Operating Line of Credit (2020). | United Bank, Inc. | 2.5 million component | ||||
Line of Credit Facility [Line Items] | ||||
Line of credit | $ 2,500,000 |
SHORT-TERM AND LONG-TERM DEBT -
SHORT-TERM AND LONG-TERM DEBT - Summary of short-term and long-term debt (Details) - USD ($) | Sep. 30, 2021 | Sep. 30, 2020 |
Debt Instrument [Line Items] | ||
Total debt | $ 17,462,598 | $ 15,772,448 |
Less current maturities | 8,441,824 | 4,538,743 |
Total long term debt | 9,020,774 | 11,233,705 |
Line of credit payable to bank, final payment due by June 28, 2022 | ||
Debt Instrument [Line Items] | ||
Total debt | 4,500,000 | |
Note payable to finance company for insurance premiums financed due November 2020 in monthly installments | ||
Debt Instrument [Line Items] | ||
Total debt | 540,250 | 509,843 |
Term note payable to United Bank, WV Pipeline acquisition, final payment due by March 25, 2026 | ||
Debt Instrument [Line Items] | ||
Total debt | 3,183,549 | |
Notes payable to bank, final due by November 2034 | ||
Debt Instrument [Line Items] | ||
Total debt | 919,017 | 967,665 |
Notes payable to bank, final due by November 2025 | ||
Debt Instrument [Line Items] | ||
Total debt | 530,750 | 644,172 |
Notes payable to bank in Paycheck Protection Program ("PPP") loan funds, Forgiven in FY 2021 | ||
Debt Instrument [Line Items] | ||
Total debt | 9,839,100 | |
Notes payable to finance companies due October 2021 through August 2026 | ||
Debt Instrument [Line Items] | ||
Total debt | 1,066,580 | 1,334,566 |
Notes payable to bank due September 2022 | ||
Debt Instrument [Line Items] | ||
Total debt | 872,452 | 1,983,911 |
Notes payable to bank, final payment due September 2021 | ||
Debt Instrument [Line Items] | ||
Total debt | $ 493,191 | |
Notes payable to David and Daniel Bolton due final payment December 31, 2026 | ||
Debt Instrument [Line Items] | ||
Total debt | 2,850,000 | |
Notes payable to bank, at interest at 5.00%, final payment due September 2021 | ||
Debt Instrument [Line Items] | ||
Total debt | $ 3,000,000 |
SHORT-TERM AND LONG-TERM DEBT_2
SHORT-TERM AND LONG-TERM DEBT - Summary of short-term and long-term debt (Parenthetical) (Details) - USD ($) | 12 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Debt Instrument [Line Items] | ||
Face amount of debt | $ 10,000,000 | $ 15,800,000 |
Debt Instrument, Increase (Decrease), Net | 9,839,100 | 0 |
Note payable to finance company for insurance premiums financed due November 2020 in monthly installments | ||
Debt Instrument [Line Items] | ||
Note payable in monthly or Annual installments | $ 272,000 | 254,922 |
Interest rate | 3.50% | |
Term note payable to United Bank, WV Pipeline acquisition, final payment due by March 25, 2026 | ||
Debt Instrument [Line Items] | ||
Note payable in monthly or Annual installments | $ 64,853 | |
Interest rate | 4.25% | |
Notes payable to bank, final due by November 2034 | ||
Debt Instrument [Line Items] | ||
Note payable in monthly or Annual installments | $ 7,799 | |
Interest rate | 4.82% | |
Notes payable to bank, final due by November 2025 | ||
Debt Instrument [Line Items] | ||
Note payable in monthly or Annual installments | $ 11,602 | |
Interest rate | 4.25% | |
Notes payable to bank in Paycheck Protection Program ("PPP") loan funds, Forgiven in FY 2021 | ||
Debt Instrument [Line Items] | ||
Face amount of debt | $ 9,800,000 | |
Notes payable to bank due September 2022 | ||
Debt Instrument [Line Items] | ||
Note payable in monthly or Annual installments | $ 98,865 | |
Interest rate | 4.99% | |
Notes payable to bank, final payment due September 2021 | ||
Debt Instrument [Line Items] | ||
Note payable in monthly or Annual installments | $ 46,482 | |
Interest rate | 5.00% | |
Notes payable to David and Daniel Bolton due final payment December 31, 2026 | ||
Debt Instrument [Line Items] | ||
Note payable in monthly or Annual installments | $ 500,000 | |
Interest rate | 3.25% | |
Face amount of debt | $ 3,000,000 | |
Discount on debt | $ 150,000 | |
Interest rate on carrying value | 5.35% | |
Line of credit payable to bank, final payment due by June 28, 2022 | ||
Debt Instrument [Line Items] | ||
Interest rate | 4.99% | |
Notes payable to finance companies, final payments due October 2020 through August 2026 | ||
Debt Instrument [Line Items] | ||
Note payable in monthly or Annual installments | $ 70,062 | $ 44,781 |
Notes payable to finance companies, final payments due October 2020 through August 2026 | Minimum | ||
Debt Instrument [Line Items] | ||
Interest rate | 0.00% | |
Notes payable to finance companies, final payments due October 2020 through August 2026 | Maximum | ||
Debt Instrument [Line Items] | ||
Interest rate | 6.03% | |
Notes payable to bank, at interest at 5.00%, final payment due September 2021 | ||
Debt Instrument [Line Items] | ||
Note payable in monthly or Annual installments | $ 68,073 | |
Interest rate | 4.25% |
SHORT-TERM AND LONG-TERM DEBT_3
SHORT-TERM AND LONG-TERM DEBT - Maturities of debt (Details) - USD ($) | Sep. 30, 2021 | Sep. 30, 2020 |
SHORT-TERM AND LONG-TERM DEBT | ||
2022 | $ 8,441,824 | |
2023 | 2,152,652 | |
2024 | 2,215,516 | |
2025 | 2,278,581 | |
2026 | 1,739,495 | |
Thereafter | 634,530 | |
Total debt | $ 17,462,598 | $ 15,772,448 |
INCOME TAXES - Components of in
INCOME TAXES - Components of income taxes (Details) - USD ($) | 12 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Federal | ||
Current | $ (187,829) | $ 634,539 |
Deferred | 165,108 | 257,160 |
Total | (22,721) | 891,699 |
State | ||
Current | (52,977) | 178,955 |
Deferred | 46,569 | 72,532 |
Total | (6,408) | 251,487 |
Total income tax (benefit) expense | $ (29,129) | $ 1,143,186 |
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, 2021 | Sep. 30, 2020 | |
INCOME TAXES | ||
Statutory rate | 21.00% | 21.00% |
State income taxes | 6.00% | 6.00% |
Meals and other | 5.70% | 5.00% |
Credit from solar installation project, Percentage | (2.80%) | 0.00% |
PPP loan forgiveness, Percentage | (30.22%) | 0.00% |
Effective tax rate | (0.32%) | 32.00% |
INCOME TAXES - Summary of incom
INCOME TAXES - Summary of income tax effects of temporary differences giving rise to the deferred tax assets and liabilities (Details) - USD ($) | Sep. 30, 2021 | Sep. 30, 2020 |
Deferred income tax liabilities | ||
Property and equipment | $ 4,883,398 | $ 2,746,331 |
Other | 37,582 | |
Total deferred income tax liabilities | 4,920,980 | 2,746,331 |
Deferred income tax assets | ||
Other | 358,400 | 490,816 |
Net operating loss carryforward | 2,529,147 | |
Total deferred income tax assets | 2,887,547 | 490,816 |
Total net deferred income tax liabilities | $ 2,033,433 | $ 2,255,515 |
INCOME TAXES - Additional Infor
INCOME TAXES - Additional Information (Details) - USD ($) | 12 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Components Of Deferred Tax Assets And Liabilities [Line Items] | ||
Federal rate | 21.00% | 21.00% |
State rate | 6.00% | 6.00% |
Tax rate for meals and other | 5.70% | 5.00% |
Amount borrowed | $ 17,462,598 | $ 15,772,448 |
PPP loan forgiveness, Percentage | (30.22%) | 0.00% |
Credit from solar installation project, Percentage | (2.80%) | 0.00% |
Paycheck Protection Program loan forgiveness | $ (9,839,100) | $ 0 |
Increase in taxable income due to non deductible expense | 515,000 | $ 530,000 |
Credit from solar installation project | 250,000 | |
PPP loan forgiveness | $ 2,700,000 | |
Effective tax rate | (0.32%) | 32.00% |
PPP funds | ||
Components Of Deferred Tax Assets And Liabilities [Line Items] | ||
Tax expense related to the PPP qualified expenses | $ 800,000 | |
Paycheck Protection Program loan forgiveness | 9,800,000 | |
Decrease In Taxable Income Nondeductible Expense | $ (9,800,000) |
EARNINGS PER SHARE (Details)
EARNINGS PER SHARE (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||||||||
Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2021 | Sep. 30, 2020 | |
EARNINGS PER SHARE | ||||||||||
Net income | $ 1,743,148 | $ 9,313,240 | $ (1,311,471) | $ (647,662) | $ 4,219,697 | $ (17,955) | $ (1,694,611) | $ (74,114) | $ 9,097,255 | $ 2,433,017 |
Dividends on preferred stock | 52,488 | 77,250 | 77,250 | 77,250 | 77,250 | 77,250 | 77,250 | 77,250 | 284,238 | 309,000 |
Income available to common shareholders | $ 1,690,660 | $ 9,235,990 | $ (1,388,721) | $ (724,912) | $ 4,142,447 | $ (95,205) | $ (1,771,861) | $ (151,364) | $ 8,813,017 | $ 2,124,017 |
Weighted average shares outstanding-basic | 13,621,406 | 13,621,406 | 13,624,406 | 13,621,406 | 13,621,406 | 13,627,293 | 13,783,546 | 13,911,610 | 13,621,406 | 13,804,835 |
Weighted average shares outstanding-diluted | 16,791,641 | 17,089,722 | 13,624,406 | 13,621,406 | 17,054,739 | 13,627,293 | 13,783,546 | 13,911,610 | 16,988,424 | 17,238,168 |
Earnings per share available to common shareholders | $ 0.124 | $ 0.678 | $ (0.102) | $ (0.053) | $ 0.304 | $ (0.007) | $ (0.129) | $ (0.011) | $ 0.647 | $ 0.154 |
Earnings per share available to common shareholders-diluted | $ 0.101 | $ 0.540 | $ (0.102) | $ (0.053) | $ 0.243 | $ (0.007) | $ (0.129) | $ (0.011) | $ 0.519 | $ 0.123 |
STOCK PURCHASE PLAN (Details)
STOCK PURCHASE PLAN (Details) - USD ($) | 1 Months Ended | 3 Months Ended | ||
Nov. 19, 2008 | Sep. 30, 2020 | Sep. 30, 2021 | Aug. 22, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Common stock, shares outstanding | 13,621,406 | 13,621,406 | ||
Common stock, shares issued | 14,839,836 | 14,839,836 | ||
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) $25,000. | |||
Common stock, shares outstanding | 1,393,393 | |||
Percentage of common stock issued and outstanding | 10.00% | |||
Common stock, shares issued | 312,522 | |||
Repurchase of shares | 0 |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details) - USD ($) | Dec. 16, 2014 | Sep. 30, 2021 | Sep. 30, 2020 |
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 | $ 10,000,000 | $ 15,800,000 | |
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 | 281,000 | ||
Interest payment | $ 351,000 |
RELATED PARTY TRANSACTIONS - Ad
RELATED PARTY TRANSACTIONS - Additional information (Details) - USD ($) | Dec. 31, 2020 | Sep. 30, 2021 | Sep. 30, 2020 |
Related Party Transaction [Line Items] | |||
Aggregate principal amount of fixed-rate debt | $ 10,000,000 | $ 15,800,000 | |
Debt fair value | 9,900,000 | $ 14,800,000 | |
Unsecured loan agreement with David Bolton and Daniel Bolton | |||
Related Party Transaction [Line Items] | |||
Term of loan agreement | 5 years | ||
Aggregate principal amount of fixed-rate debt | $ 3,000,000 | ||
Interest rate | 3.25% | ||
Interest payment | 73,000 | ||
Debt fair value | $ 2,850,000 | ||
Fair acquisition | 6,350,000 | ||
Payments to acquire business gross | $ 3,500,000 | ||
Interest rate on carrying value | 5.35% | ||
Accreted interest | $ 22,500 |
LEASE OBLIGATIONS (Details)
LEASE OBLIGATIONS (Details) - USD ($) | 12 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
LEASE OBLIGATIONS | ||
Operating lease payments | $ 1,500 | |
Rental expense | $ 3,600,000 | $ 4,200,000 |
MAJOR CUSTOMERS (Details)
MAJOR CUSTOMERS (Details) - Customer Concentration Risk | 12 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Concentration Risk [Line Items] | ||
Customers concentration percentage | 10.00% | |
Revenues | ||
Concentration Risk [Line Items] | ||
Customers concentration percentage | 100.00% | 100.00% |
Revenues | TransCanada Corporation | ||
Concentration Risk [Line Items] | ||
Customers concentration percentage | 11.00% | 24.70% |
Revenues | Marathon Petroleum | ||
Concentration Risk [Line Items] | ||
Customers concentration percentage | 11.10% | |
Revenues | All Other | ||
Concentration Risk [Line Items] | ||
Customers concentration percentage | 89.00% | 64.20% |
Revenues | Customer One | ||
Concentration Risk [Line Items] | ||
Customers concentration percentage | 10.00% | |
Receivables | ||
Concentration Risk [Line Items] | ||
Customers concentration percentage | 100.00% | 100.00% |
Receivables | TransCanada Corporation | ||
Concentration Risk [Line Items] | ||
Customers concentration percentage | 13.20% | 18.40% |
Receivables | Marathon Petroleum | ||
Concentration Risk [Line Items] | ||
Customers concentration percentage | 19.70% | |
Receivables | All Other | ||
Concentration Risk [Line Items] | ||
Customers concentration percentage | 70.50% | 50.00% |
Receivables | Shimizu North American LLC | ||
Concentration Risk [Line Items] | ||
Customers concentration percentage | 11.90% | |
Receivables | Kentucky American Water | ||
Concentration Risk [Line Items] | ||
Customers concentration percentage | 16.30% | |
Receivables | Customer Two | ||
Concentration Risk [Line Items] | ||
Customers concentration percentage | 10.00% |
RETIREMENT AND EMPLOYEE BENEF_3
RETIREMENT AND EMPLOYEE BENEFIT PLANS - Summary of Participation in Pension Fund Plan (Details) - USD ($) | Dec. 15, 2021 | Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2018 |
Multiemployer Plans [Line Items] | |||||
Entity Tax Identification Number | 20-4606266 | ||||
Multiemployer Plan, Employer Contribution, Cost | $ 4,898,691 | $ 3,354,588 | $ 8,507,411 | ||
Payments for installment | $ 41,000 | ||||
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 | $ 0 | $ 189,644 | |||
Surcharge Imposed | No | No | No | ||
Expiration Date of Collective Bargaining Agreement | Various | Various | Various | ||
Employer-Teamsters Local Nos. 175 and 505 | |||||
Multiemployer Plans [Line Items] | |||||
EIN/Pension Plan Number | 55-6021850/001 | ||||
Pension Protection Act ("PPA") Certified Zone Status | Red | Red | |||
FIP/RP Status | Implemented | Implemented | Implemented | ||
Contributions of Energy Services of America Companies | $ 0 | $ 169,483 | |||
Surcharge Imposed | No | No | No | ||
Expiration Date of Collective Bargaining Agreement | Various | Various | Various | ||
Laborers National Pension Fund | |||||
Multiemployer Plans [Line Items] | |||||
EIN/Pension Plan Number | 75-1280827/001 | ||||
Pension Protection Act ("PPA") Certified Zone Status | Red | Red | |||
FIP/RP Status | Implemented | Implemented | Implemented | ||
Contributions of Energy Services of America Companies | $ 394,563 | $ 356,548 | $ 1,202,310 | ||
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 | $ 121,133 | $ 124,863 | $ 131,141 | ||
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 | $ 160,367 | $ 86,998 | $ 122,683 | ||
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 | $ 281,568 | $ 542,659 | $ 746,743 | ||
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 | $ 616,568 | $ 594,364 | $ 786,940 | ||
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 | $ 538,286 | $ 169,018 | $ 125,982 | ||
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 | $ 0 | $ 71,143 | |||
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 | $ 2,492 | $ 0 | $ 19,511 | ||
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 | |||
Multiemployer Plan, Pension, Insignificant, Employer Contribution, Cost | $ 2,783,713 | $ 1,480,139 | $ 4,941,831 | ||
Multiemployer Plan, Pension, Insignificant, Surcharge [Fixed List] | 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, 2021 | Sep. 30, 2020 | |
Defined Benefit Plan Disclosure [Line Items] | ||
Percentage of employees contribution to retirement compensation plan | 15.00% | |
Maximum amount of employees contribution | $ 19,500 | $ 19,500 |
Amount of contribution matched per dollar | $ 0.25 | |
Percentage of contribution of eligible wages | 6.00% | |
Amount of contribution to union plan | $ 25,798 | $ 13,300 |
RETIREMENT AND EMPLOYEE BENEF_5
RETIREMENT AND EMPLOYEE BENEFIT PLANS - Energy Services of America retirement plan (Details) - USD ($) | 12 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
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 | $ 19,500 | $ 19,500 |
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 | $ 365,000 | $ 271,000 |
Qualified Non-Elective Contribution ("QNEC") | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Amount of contribution to union plan | $ 651,000 |
CREDIT RISK (Details)
CREDIT RISK (Details) | Sep. 30, 2021USD ($) |
CREDIT RISK | |
FDIC insurance limit | $ 250,000 |
Uninsured deposits | $ 6,300,000 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Details) $ in Millions | 12 Months Ended |
Sep. 30, 2021USD ($) | |
COMMITMENTS AND CONTINGENCIES | |
Performance bonds outstanding amount | $ 30.1 |
PPP loans received | $ 9.8 |
ACQUISITIONS - Tangible and int
ACQUISITIONS - Tangible and intangible assets acquired and liabilities assumed, the purchase price allocations (Details) - USD ($) | Sep. 30, 2021 | Sep. 30, 2020 |
Asset Acquisition [Line Items] | ||
Goodwill | $ 1,814,317 | |
Property, Plant and Equipment, Net, Total | 22,950,019 | $ 16,391,714 |
Intangible assets, net | 2,425,923 | |
West Virginia Pipeline | ||
Asset Acquisition [Line Items] | ||
Goodwill | 1,814,317 | |
Cash received in acquisition | 250,000 | |
Debt assumed in acquisition | (120,828) | |
Purchase price | 6,350,000 | |
West Virginia Pipeline | Non-competes | ||
Asset Acquisition [Line Items] | ||
Intangible assets, net | 83,203 | |
West Virginia Pipeline | Customer relationships | ||
Asset Acquisition [Line Items] | ||
Intangible assets, net | 2,209,724 | |
West Virginia Pipeline | Tradename | ||
Asset Acquisition [Line Items] | ||
Intangible assets, net | 263,584 | |
West Virginia Pipeline | Equipment and vehicles | ||
Asset Acquisition [Line Items] | ||
Property, Plant and Equipment, Net, Total | 1,565,000 | |
West Virginia Pipeline | Building | ||
Asset Acquisition [Line Items] | ||
Property, Plant and Equipment, Net, Total | 220,243 | |
West Virginia Pipeline | Land | ||
Asset Acquisition [Line Items] | ||
Property, Plant and Equipment, Net, Total | 64,757 | |
Revolt Energy | ||
Asset Acquisition [Line Items] | ||
Debt assumed in acquisition | (85,000) | |
Purchase price | 150,000 | |
Revolt Energy | Non-competes | ||
Asset Acquisition [Line Items] | ||
Intangible assets, net | 100,000 | |
Revolt Energy | Equipment and vehicles | ||
Asset Acquisition [Line Items] | ||
Property, Plant and Equipment, Net, Total | $ 135,000 |
ACQUISITIONS - Pro forma statem
ACQUISITIONS - Pro forma statement of income (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||||||||
Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2021 | Sep. 30, 2020 | |
Asset Acquisition [Line Items] | ||||||||||
Revenue | $ 39,564,667 | $ 25,285,951 | $ 25,605,412 | $ 32,009,796 | $ 44,516,008 | $ 30,762,725 | $ 18,072,400 | $ 25,843,307 | $ 122,465,826 | $ 119,194,440 |
Cost of revenues | 109,544,804 | 105,693,209 | ||||||||
Gross Profit | 12,921,022 | 13,501,231 | ||||||||
Selling and Administrative Expenses | 13,813,644 | 9,831,578 | ||||||||
(Loss) income from operations | 2,312,792 | (502,253) | (1,950,390) | (752,771) | 5,889,687 | 294,036 | (2,275,040) | (239,030) | (892,622) | 3,669,653 |
Other Income (Expense) | ||||||||||
Interest income | 286,645 | 53,332 | ||||||||
Other nonoperating expense | (289,330) | (239,862) | ||||||||
Interest expense | (557,320) | (486,246) | ||||||||
Gain on sale of equipment | 681,653 | 579,326 | ||||||||
Other nonoperating income (expense), Total | 9,960,748 | (93,450) | ||||||||
Income before income taxes | 9,068,126 | 3,576,203 | ||||||||
Income tax (benefit) expense | (29,129) | 1,143,186 | ||||||||
Net income | 1,743,148 | 9,313,240 | (1,311,471) | (647,662) | 4,219,697 | (17,955) | (1,694,611) | (74,114) | 9,097,255 | 2,433,017 |
Dividends on preferred stock | $ 52,488 | $ 77,250 | $ 77,250 | $ 77,250 | $ 77,250 | $ 77,250 | $ 77,250 | $ 77,250 | 284,238 | 309,000 |
Net income available to common shareholders | $ 8,813,017 | $ 2,124,017 | ||||||||
Weighted average shares outstanding-basic | 13,621,406 | 13,621,406 | 13,624,406 | 13,621,406 | 13,621,406 | 13,627,293 | 13,783,546 | 13,911,610 | 13,621,406 | 13,804,835 |
Weighted average shares-diluted | 16,791,641 | 17,089,722 | 13,624,406 | 13,621,406 | 17,054,739 | 13,627,293 | 13,783,546 | 13,911,610 | 16,988,424 | 17,238,168 |
Earnings per share available to common shareholders | $ 0.647 | $ 0.154 | ||||||||
Net earnings per share-diluted available to common shareholders | $ 0.519 | $ 0.123 | ||||||||
West Virginia Pipeline | Pro Forma | ||||||||||
Asset Acquisition [Line Items] | ||||||||||
Revenue | $ 125,320,477 | |||||||||
Cost of revenues | 109,636,178 | |||||||||
Gross Profit | 15,684,299 | |||||||||
Selling and Administrative Expenses | 10,649,838 | |||||||||
(Loss) income from operations | 5,034,461 | |||||||||
Other Income (Expense) | ||||||||||
Interest income | 53,830 | |||||||||
Other nonoperating expense | (239,551) | |||||||||
Interest expense | (700,926) | |||||||||
Gain on sale of equipment | 579,326 | |||||||||
Other nonoperating income (expense), Total | (307,321) | |||||||||
Income before income taxes | 4,727,140 | |||||||||
Income tax (benefit) expense | 1,453,939 | |||||||||
Net income | 3,273,201 | |||||||||
Dividends on preferred stock | 309,000 | |||||||||
Net income available to common shareholders | $ 2,964,201 | |||||||||
Weighted average shares outstanding-basic | 13,804,835 | |||||||||
Weighted average shares-diluted | 17,238,168 | |||||||||
Earnings per share available to common shareholders | $ 0.215 | |||||||||
Net earnings per share-diluted available to common shareholders | $ 0.172 |
ACQUISITIONS - Asset Acquisitio
ACQUISITIONS - Asset Acquisition (Details) - Revolt Energy - USD ($) | 1 Months Ended | 12 Months Ended |
Apr. 30, 2021 | Sep. 30, 2021 | |
Asset Acquisition [Line Items] | ||
Cash consideration | $ 150,000 | |
Revenue earned | $ 675,000 |
ACQUISITIONS - Additional Infor
ACQUISITIONS - Additional Information (Details) - USD ($) | Dec. 31, 2020 | Apr. 30, 2021 | Sep. 30, 2021 | Sep. 30, 2020 |
Asset Acquisition [Line Items] | ||||
Aggregate principal amount of fixed-rate debt | $ 10,000,000 | $ 15,800,000 | ||
Debt fair value | 9,900,000 | $ 14,800,000 | ||
Goodwill | 1,814,317 | |||
Intangible assets | 2,425,923 | |||
Amount Reclassified From Goodwill To Intangible Assets | 2,300,000 | |||
West Virginia Pipeline | ||||
Asset Acquisition [Line Items] | ||||
Term of debt | 5 years | |||
Interest Rate | 3.25% | |||
Acquisition Expenses | 150,000 | |||
Revenues | 5,700,000 | |||
Aggregate principal amount of fixed-rate debt | $ 3,000,000 | |||
Debt fair value | 2,850,000 | |||
Fair acquisition | 6,350,000 | |||
Payments to acquire business gross | $ 3,500,000 | |||
Interest rate on carrying value | 5.35% | |||
Goodwill | 1,814,317 | |||
Revolt Energy | ||||
Asset Acquisition [Line Items] | ||||
Cash consideration | $ 150,000 | |||
West Virginia Pipeline And Revolt Energy | ||||
Asset Acquisition [Line Items] | ||||
Goodwill | 4,200,000 | |||
Intangible assets | $ 400,000 |
GOODWILL AND INTANGIBLE ASSET_2
GOODWILL AND INTANGIBLE ASSETS - Goodwill (Details) | 12 Months Ended |
Sep. 30, 2021USD ($) | |
Goodwill | |
Acquired | $ 1,814,317 |
Ending balance | $ 1,814,317 |
GOODWILL AND INTANGIBLE ASSET_3
GOODWILL AND INTANGIBLE ASSETS - Intangible assets subject to amortization (Details) - USD ($) | 12 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Finite-Lived Intangible Assets [Line Items] | ||
Original cost | $ 2,656,511 | |
Accumulated Amortization | 230,588 | |
Amortization and Impairment | 230,588 | |
Net Book Value | 2,425,923 | |
Amortization on identifiable intangible assets | $ 230,588 | $ 0 |
Non-competes | West Virginia Pipeline | ||
Finite-Lived Intangible Assets [Line Items] | ||
Remaining life of intangible assets | 51 months | |
Original cost | $ 83,203 | |
Accumulated Amortization | 31,202 | |
Amortization and Impairment | 31,202 | |
Net Book Value | $ 52,001 | |
Non-competes | Revolt Energy | ||
Finite-Lived Intangible Assets [Line Items] | ||
Remaining life of intangible assets | 31 months | |
Original cost | $ 100,000 | |
Accumulated Amortization | 13,889 | |
Amortization and Impairment | 13,889 | |
Net Book Value | $ 86,111 | |
Customer relationships | West Virginia Pipeline | ||
Finite-Lived Intangible Assets [Line Items] | ||
Remaining life of intangible assets | 111 months | |
Original cost | $ 2,209,724 | |
Accumulated Amortization | 165,725 | |
Amortization and Impairment | 165,725 | |
Net Book Value | $ 2,043,999 | |
Tradename | West Virginia Pipeline | ||
Finite-Lived Intangible Assets [Line Items] | ||
Remaining life of intangible assets | 111 months | |
Original cost | $ 263,584 | |
Accumulated Amortization | 19,772 | |
Amortization and Impairment | 19,772 | |
Net Book Value | $ 243,812 |
GOODWILL AND INTANGIBLE ASSET_4
GOODWILL AND INTANGIBLE ASSETS - GOODWILL AND INTANGIBLE ASSETS (Details) | Sep. 30, 2021USD ($) |
GOODWILL AND INTANGIBLE ASSETS | |
2022 | $ 322,272 |
2023 | 291,065 |
2024 | 266,771 |
2025 | 247,332 |
2026 | 247,332 |
After | 1,051,151 |
Total | $ 2,425,923 |
SUBSEQUENT EVENTS (Details)
SUBSEQUENT EVENTS (Details) - USD ($) | Nov. 09, 2021 | Oct. 06, 2021 | Nov. 12, 2021 | Sep. 30, 2021 | Sep. 30, 2020 |
Subsequent Event [Line Items] | |||||
Common stock, shares outstanding | 13,621,406 | 13,621,406 | |||
Subsequent event | |||||
Subsequent Event [Line Items] | |||||
Common stock, shares outstanding | 16,247,898 | ||||
Lawsuit related to construction services | $ 5,800,000 | ||||
Installment payment of pension plan | $ 41,000 | ||||
Subsequent event | Common Stock | |||||
Subsequent Event [Line Items] | |||||
Common stock, issuance shares | 2,626,492 | ||||
Subsequent event | Series A Preferred Stock | |||||
Subsequent Event [Line Items] | |||||
Common stock, issuance shares | 317,500 | ||||
common stock, issuance value | $ 1,300,000 |
QUARTERLY FINANCIAL DATA (UNA_3
QUARTERLY FINANCIAL DATA (UNAUDITED) (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||||||||
Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2021 | Sep. 30, 2020 | |
Continuing operations | ||||||||||
Revenue | $ 39,564,667 | $ 25,285,951 | $ 25,605,412 | $ 32,009,796 | $ 44,516,008 | $ 30,762,725 | $ 18,072,400 | $ 25,843,307 | $ 122,465,826 | $ 119,194,440 |
Operating Income (loss) | 2,312,792 | (502,253) | (1,950,390) | (752,771) | 5,889,687 | 294,036 | (2,275,040) | (239,030) | (892,622) | 3,669,653 |
Net loss | 1,743,148 | 9,313,240 | (1,311,471) | (647,662) | 4,219,697 | (17,955) | (1,694,611) | (74,114) | 9,097,255 | 2,433,017 |
Dividends on preferred stock | 52,488 | 77,250 | 77,250 | 77,250 | 77,250 | 77,250 | 77,250 | 77,250 | 284,238 | 309,000 |
Net income (loss) available to common shareholders | $ 1,690,660 | $ 9,235,990 | $ (1,388,721) | $ (724,912) | $ 4,142,447 | $ (95,205) | $ (1,771,861) | $ (151,364) | $ 8,813,017 | $ 2,124,017 |
Weighted-basic shares outstanding (in shares) | 13,621,406 | 13,621,406 | 13,624,406 | 13,621,406 | 13,621,406 | 13,627,293 | 13,783,546 | 13,911,610 | 13,621,406 | 13,804,835 |
Weighted-diluted shares outstanding (in shares) | 16,791,641 | 17,089,722 | 13,624,406 | 13,621,406 | 17,054,739 | 13,627,293 | 13,783,546 | 13,911,610 | 16,988,424 | 17,238,168 |
Earnings (loss) per share available to common shareholders (in dollars per share) | $ 0.124 | $ 0.678 | $ (0.102) | $ (0.053) | $ 0.304 | $ (0.007) | $ (0.129) | $ (0.011) | $ 0.647 | $ 0.154 |
Earnings (loss) per share available to common shareholders-diluted | $ 0.101 | $ 0.540 | $ (0.102) | $ (0.053) | $ 0.243 | $ (0.007) | $ (0.129) | $ (0.011) | $ 0.519 | $ 0.123 |
QUARTERLY FINANCIAL DATA (UNA_4
QUARTERLY FINANCIAL DATA (UNAUDITED) - Quarterly revenue data (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||||||||
Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2021 | Sep. 30, 2020 | |
Disaggregation of Revenue [Line Items] | ||||||||||
Total revenue from contracts | $ 39,564,667 | $ 25,285,951 | $ 25,605,412 | $ 32,009,796 | $ 44,516,008 | $ 30,762,725 | $ 18,072,400 | $ 25,843,307 | $ 122,465,826 | $ 119,194,440 |
Percentage of revenue | 100.00% | 100.00% | 100.00% | 100.00% | 100.00% | 100.00% | 100.00% | 100.00% | 100.00% | 100.00% |
Gas & Water Distribution | ||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||
Total revenue from contracts | $ 12,922,432 | $ 11,780,986 | $ 8,605,138 | $ 7,131,639 | $ 7,381,923 | $ 4,867,185 | $ 4,391,358 | $ 7,847,793 | $ 40,440,195 | $ 24,488,259 |
Percentage of revenue | 32.70% | 46.60% | 33.60% | 22.30% | 16.60% | 15.80% | 24.30% | 30.40% | 33.00% | 20.50% |
Gas & Petroleum Transmission | ||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||
Total revenue from contracts | $ 7,790,232 | $ 1,967,647 | $ 3,683,012 | $ 8,692,592 | $ 21,864,088 | $ 12,936,299 | $ 3,160,749 | $ 5,083,071 | $ 22,133,483 | $ 43,044,207 |
Percentage of revenue | 19.70% | 7.80% | 14.40% | 27.20% | 49.10% | 42.10% | 17.50% | 19.70% | 18.10% | 36.10% |
Electrical, Mechanical, and General Member | ||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||
Total revenue from contracts | $ 18,852,003 | $ 11,537,318 | $ 13,317,262 | $ 16,185,565 | $ 15,269,997 | $ 12,959,241 | $ 10,520,293 | $ 12,912,443 | $ 59,892,148 | $ 51,661,974 |
Percentage of revenue | 47.60% | 45.60% | 52.00% | 50.60% | 34.30% | 42.10% | 58.20% | 50.00% | 48.90% | 43.30% |
Change | ||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||
Total revenue from contracts | $ (4,951,341) | $ (5,476,774) | $ 7,533,012 | $ 6,166,489 | $ 3,271,386 | |||||
Percentage of revenue | (11.10%) | (17.80%) | 41.70% | 23.90% | 2.70% | |||||
Change | Gas & Water Distribution | ||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||
Total revenue from contracts | $ 5,540,509 | $ 6,913,801 | $ 4,213,780 | $ (716,154) | $ 15,951,936 | |||||
Percentage of revenue | 75.10% | 142.00% | 96.00% | (9.10%) | 65.10% | |||||
Change | Gas & Petroleum Transmission | ||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||
Total revenue from contracts | $ (14,073,856) | $ (10,968,652) | $ 522,263 | $ 3,609,521 | $ (20,910,724) | |||||
Percentage of revenue | (64.40%) | (84.80%) | 16.50% | 71.00% | (48.60%) | |||||
Change | Electrical, Mechanical, and General Member | ||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||
Total revenue from contracts | $ 3,582,006 | $ (1,421,923) | $ 2,796,969 | $ 3,273,122 | $ 8,230,174 | |||||
Percentage of revenue | 23.50% | (11.00%) | 26.60% | 25.30% | 15.90% |
CONDENSED PARENT COMPANY ONLY_3
CONDENSED PARENT COMPANY ONLY FINANCIAL STATEMENTS - BALANCE SHEETS (Details) - USD ($) | Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2019 |
Current assets | |||
Cash and cash equivalents | $ 8,226,739 | $ 11,216,820 | |
Other receivables | 543,328 | 9,458 | |
Prepaid expenses and other | 3,541,000 | 3,338,943 | |
Total current assets | 42,981,202 | 41,771,572 | |
Property, plant and equipment, at cost | 61,145,705 | 53,324,843 | |
less accumulated depreciation | (38,195,686) | (36,933,129) | |
Total fixed assets | 22,950,019 | 16,391,714 | |
Total assets | 70,171,461 | 58,163,286 | |
Current liabilities | |||
Current maturities of long-term debt | 3,401,574 | 4,028,900 | |
Accounts payable | 7,285,392 | 5,222,222 | |
Total current liabilities | 24,480,208 | 18,850,037 | |
Long-term debt, less current maturities | 9,020,774 | 11,233,705 | |
Total liabilities | 35,534,415 | 32,339,257 | |
Shareholders' equity | |||
Treasury stock, 1,218,430 shares at September 30, 2021, and 2020 | (122) | (122) | |
Additional paid in capital | 60,670,699 | 60,670,699 | |
Retained deficit | (26,035,015) | (34,848,032) | |
Total shareholders' equity | 34,637,046 | 25,824,029 | $ 24,664,357 |
Total liabilities and shareholders' equity | 70,171,461 | 58,163,286 | |
Parent Company | Reportable legal entities | |||
Current assets | |||
Cash and cash equivalents | 1,703,803 | 177,485 | |
Other receivables | 536,326 | (307) | |
Prepaid expenses and other | 3,082,577 | 3,145,446 | |
Total current assets | 5,322,706 | 3,322,624 | |
Property, plant and equipment, at cost | 265,200 | 265,200 | |
less accumulated depreciation | (243,491) | (236,690) | |
Total fixed assets | 21,709 | 28,510 | |
Deferred tax asset | 2,575,843 | 139,307 | |
Investment in subsidiaries | 44,260,423 | 34,090,094 | |
Total assets | 52,180,681 | 37,580,535 | |
Current liabilities | |||
Current maturities of long-term debt | 1,455,595 | 1,728,120 | |
Lines of credit and short term borrowings | 5,040,250 | 509,843 | |
Accounts payable | 138,091 | 23,771 | |
Accrued expenses and other current liabilities | 242,005 | ||
Total current liabilities | 6,875,941 | 2,261,734 | |
Due to subsidiaries | 7,720,087 | 8,061,618 | |
Long-term debt, less current maturities | 2,947,607 | 1,433,154 | |
Total liabilities | 17,543,635 | 11,756,506 | |
Shareholders' equity | |||
Preferred stock, $.0001 par value Authorized 1,000,000 shares, 206 issued at September 30, 2021 and 2020 | 0 | 0 | |
Common stock, $.0001 par value Authorized 50,000,000 shares 14,839,836 issued and 13,621,406 outstanding at September 30, 2021 and 2020 | 1,484 | 1,484 | |
Treasury stock, 1,218,430 shares at September 30, 2021, and 2020 | (122) | (122) | |
Additional paid in capital | 60,670,699 | 60,670,699 | |
Retained deficit | (26,035,015) | (34,848,032) | |
Total shareholders' equity | 34,637,046 | 25,824,029 | |
Total liabilities and shareholders' equity | $ 52,180,681 | $ 37,580,535 |
CONDENSED PARENT COMPANY ONLY_4
CONDENSED PARENT COMPANY ONLY FINANCIAL STATEMENTS - BALANCE SHEETS (Parenthetical) (Details) - $ / shares | Sep. 30, 2021 | Sep. 30, 2020 |
Condensed Balance Sheet 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 | 13,621,406 | 13,621,406 |
Treasury stock, shares | 1,218,430 | 1,218,430 |
Parent Company | Reportable legal entities | ||
Condensed Balance Sheet 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 | 13,621,406 |
Common stock, shares outstanding | 14,839,836 | 13,621,406 |
Treasury stock, shares | 1,218,430 | 1,218,430 |
CONDENSED PARENT COMPANY ONLY_5
CONDENSED PARENT COMPANY ONLY FINANCIAL STATEMENTS - STATEMENTS OF INCOME (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||||||||
Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2021 | Sep. 30, 2020 | |
Condensed Income Statements, Captions [Line Items] | ||||||||||
Selling and administrative expenses | $ 13,813,644 | $ 9,831,578 | ||||||||
(Loss) income from operations | $ 2,312,792 | $ (502,253) | $ (1,950,390) | $ (752,771) | $ 5,889,687 | $ 294,036 | $ (2,275,040) | $ (239,030) | (892,622) | 3,669,653 |
Other nonoperating income expense | (289,330) | (239,862) | ||||||||
PPP loan forgiveness | 9,839,100 | 0 | ||||||||
Interest expense | (557,320) | (486,246) | ||||||||
Income before income taxes | 9,068,126 | 3,576,203 | ||||||||
Income tax benefit | (29,129) | 1,143,186 | ||||||||
Net income | $ 1,743,148 | $ 9,313,240 | $ (1,311,471) | $ (647,662) | $ 4,219,697 | $ (17,955) | $ (1,694,611) | $ (74,114) | 9,097,255 | 2,433,017 |
Net income available to common shareholders | $ 8,813,017 | $ 2,124,017 | ||||||||
Weighted average shares outstanding-basic (in shares) | 13,621,406 | 13,621,406 | 13,624,406 | 13,621,406 | 13,621,406 | 13,627,293 | 13,783,546 | 13,911,610 | 13,621,406 | 13,804,835 |
Weighted average shares-diluted (in Shares) | 16,791,641 | 17,089,722 | 13,624,406 | 13,621,406 | 17,054,739 | 13,627,293 | 13,783,546 | 13,911,610 | 16,988,424 | 17,238,168 |
Net earnings per share-basic available to common shareholders | $ 0.647 | $ 0.154 | ||||||||
Net earnings per share-diluted available to common shareholders | $ 0.519 | $ 0.123 | ||||||||
Parent Company | Reportable legal entities | ||||||||||
Condensed Income Statements, Captions [Line Items] | ||||||||||
Selling and administrative expenses | $ 1,875,879 | $ 1,502,575 | ||||||||
(Loss) income from operations | (1,875,879) | (1,502,575) | ||||||||
Other nonoperating income expense | 103,211 | (189) | ||||||||
PPP loan forgiveness | 40,000 | |||||||||
Interest income | 286,533 | 53,249 | ||||||||
Interest expense | (222,675) | (341,312) | ||||||||
Interest allocation to subsidiaries | 209,162 | 323,258 | ||||||||
Income before income taxes | (1,459,648) | (1,467,569) | ||||||||
Income tax benefit | (386,574) | (341,054) | ||||||||
Net loss from parent | (1,073,074) | (1,126,515) | ||||||||
Equity in undistributed income of subsidiaries | 10,170,329 | 3,559,532 | ||||||||
Net income | 9,097,255 | 2,433,017 | ||||||||
Dividends on preferred stock | (284,238) | (309,000) | ||||||||
Net income available to common shareholders | $ 8,813,017 | $ 2,124,017 | ||||||||
Weighted average shares outstanding-basic (in shares) | 13,621,406 | 13,804,835 | ||||||||
Weighted average shares-diluted (in Shares) | 16,988,424 | 17,238,168 | ||||||||
Net earnings per share-basic available to common shareholders | $ 0.647 | $ 0.154 | ||||||||
Net earnings per share-diluted available to common shareholders | $ 0.519 | $ 0.123 |
CONDENSED PARENT COMPANY ONLY_6
CONDENSED PARENT COMPANY ONLY FINANCIAL STATEMENTS - CONSOLIDATED STATEMENTS OF CASH FLOWS (Details) - USD ($) | 12 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Adjustments to reconcile net (loss) income to net cash provided by (used in) operating activities | ||
Provision for deferred taxes | $ 211,677 | $ 329,692 |
Depreciation expense | 4,661,789 | 4,395,362 |
Paycheck Protection Program loan forgiveness | (9,839,100) | 0 |
Changes in: | ||
Decrease (increase) in prepaid expenses | (202,057) | (603,969) |
Increase in other receivable | (533,870) | 550 |
Increase (decrease) in accounts payable | 2,063,170 | 2,302,604 |
Net cash (used in) provided by operating activities | 798,939 | 14,985,570 |
Cash flows from investing activities: | ||
Investment in property & equipment | (6,047,693) | (3,534,821) |
Net cash used in investing activities | (8,689,302) | (2,766,165) |
Cash flows from financing activities: | ||
Borrowings on lines of credit and short-term debt, net of (repayments) | 8,030,407 | (3,515,867) |
Principal payments on long term debt | (2,821,125) | (13,930,748) |
Dividends on common stock | 0 | (696,117) |
Preferred dividends paid | (309,000) | (309,000) |
Treasury stock purchased by company | 0 | (268,228) |
Proceeds from long term debt | 0 | 13,139,100 |
Net cash provided by (used in) financing activities | 4,900,282 | (5,580,860) |
Increase in cash and cash equivalents | (2,990,081) | 6,638,545 |
Cash and cash equivalents beginning of period | 11,216,820 | 4,578,275 |
Cash and cash equivalents end of period | 8,226,739 | 11,216,820 |
Supplemental schedule of noncash investing and financing activities: | ||
Insurance premiums financed | 3,213,402 | 3,063,543 |
Cash paid during the year for: | ||
Interest | 557,320 | 486,246 |
Income taxes | 251,996 | 785,630 |
Parent Company | Reportable legal entities | ||
Cash flows from operating activities: | ||
Net (loss) income | 9,097,255 | 2,433,017 |
Adjustments to reconcile net (loss) income to net cash provided by (used in) operating activities | ||
Provision for deferred taxes | (411,574) | 78,786 |
Depreciation expense | 6,801 | 6,062 |
Equity in undistributed income of subsidiaries | (10,170,329) | (3,559,532) |
Paycheck Protection Program loan forgiveness | (40,000) | |
Advances (to) from subsidiaries | 2,658,469 | 16,404,900 |
Changes in: | ||
Decrease (increase) in prepaid expenses | 62,869 | (733,098) |
Increase in other receivable | (536,633) | |
Increase (decrease) in accounts payable | 114,320 | (45,150) |
Decrease in accrued expenses and other current liabilities | (1,782,957) | (98,843) |
Net cash (used in) provided by operating activities | (1,001,779) | 14,486,142 |
Cash flows from investing activities: | ||
Investment in property & equipment | (16,798) | |
Net cash used in investing activities | (16,798) | |
Cash flows from financing activities: | ||
Borrowings on lines of credit and short-term debt, net of (repayments) | 4,530,407 | (3,515,867) |
Principal payments on long term debt | (1,718,072) | (9,628,578) |
Dividends on common stock | (696,117) | |
Preferred dividends paid | (284,238) | (309,000) |
Treasury stock purchased by company | (268,228) | |
Proceeds from long term debt | 66,100 | |
Net cash provided by (used in) financing activities | 2,528,097 | (14,351,690) |
Increase in cash and cash equivalents | 1,526,318 | 117,654 |
Cash and cash equivalents beginning of period | 177,485 | 59,831 |
Cash and cash equivalents end of period | 1,703,803 | 177,485 |
Supplemental schedule of noncash investing and financing activities: | ||
Insurance premiums financed | 3,213,402 | 3,063,543 |
Accrued dividends on preferred stock | 52,488 | 77,250 |
Cash paid during the year for: | ||
Interest | 222,675 | 486,246 |
Income taxes | $ 251,996 | $ 785,630 |