Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Dec. 31, 2021 | Feb. 10, 2022 | |
Document and Entity Information [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | Dec. 31, 2021 | |
Entity Registrant Name | Energy Services of America Corporation | |
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 | None | |
Trading Symbol | esoa | |
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 | Q3 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Dec. 31, 2021 | Sep. 30, 2021 |
Current assets | ||
Cash and cash equivalents | $ 11,133,146 | $ 8,226,739 |
Accounts receivable-trade | 25,358,268 | 21,092,517 |
Allowance for doubtful accounts | (70,310) | (70,310) |
Retainages receivable | 1,469,111 | 917,526 |
Other receivables | 48,557 | 543,328 |
Contract assets | 5,914,651 | 8,730,402 |
Prepaid expenses and other | 2,790,154 | 3,541,000 |
Total current assets | 46,643,577 | 42,981,202 |
Property, plant and equipment, at cost | 60,831,236 | 61,145,705 |
less accumulated depreciation | (38,126,831) | (38,195,686) |
Total fixed assets | 22,704,405 | 22,950,019 |
Intangible assets, net | 2,306,466 | 2,425,923 |
Goodwill | 1,814,317 | 1,814,317 |
Total assets | 73,468,765 | 70,171,461 |
Current liabilities | ||
Current maturities of long-term debt | 3,181,197 | 3,401,574 |
Lines of credit and short term borrowings | 4,500,000 | 5,040,250 |
Accounts payable | 7,343,618 | 7,285,392 |
Accrued expenses and other current liabilities | 5,568,259 | 5,599,702 |
Contract liabilities | 7,529,065 | 3,153,290 |
Total current liabilities | 28,122,139 | 24,480,208 |
Long-term debt, less current maturities | 8,273,406 | 9,020,774 |
Deferred tax liability | 2,475,456 | 2,033,433 |
Total liabilities | 38,871,001 | 35,534,415 |
Shareholders' equity | ||
Preferred stock, $.0001 par value Authorized 1,000,000 shares, none issued at December 31, 2021 and 206 issued at September 30, 2021 | ||
Common stock, $.0001 par value Authorized 50,000,000 shares, 17,466,328 issued and 16,247,898 outstanding at December 31, 2021 and 14,839,836 issued and 13,621,406 outstanding at September 30, 2021 | 1,747 | 1,484 |
Treasury stock, 1,218,430 shares at December 31, 2021 and September 30, 2021 | (122) | (122) |
Additional paid in capital | 59,460,174 | 60,670,699 |
Retained deficit | (24,864,035) | (26,035,015) |
Total shareholders' equity | 34,597,764 | 34,637,046 |
Total liabilities and shareholders' equity | $ 73,468,765 | $ 70,171,461 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parentheticals) - $ / shares | Dec. 31, 2021 | Sep. 30, 2021 |
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 | 0 | 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 | 17,466,328 | 14,839,836 |
Common stock, shares outstanding | 16,247,898 | 13,621,406 |
Treasury stock, shares | 1,218,430 | 1,218,430 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) | 3 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Consolidated Statements of Income | ||
Revenue | $ 42,659,125 | $ 32,009,796 |
Cost of revenues | 37,350,752 | 29,166,737 |
Gross profit | 5,308,373 | 2,843,059 |
Selling and administrative expenses | 3,632,595 | 3,595,830 |
Income (loss) from operations | 1,675,778 | (752,771) |
Other income (expense) | ||
Interest income | 576 | 151,765 |
Other nonoperating expense | (153,428) | (52,623) |
Interest expense | (197,559) | (76,517) |
Gain on sale of equipment | 339,896 | 13,042 |
Other nonoperating income (expense), Total | (10,515) | 35,667 |
Income (loss) before income taxes | 1,665,263 | (717,104) |
Income tax expense (benefit) | 494,283 | (69,442) |
Net income (loss) | 1,170,980 | (647,662) |
Dividends on preferred stock | 77,250 | |
Net income (loss) available to common shareholders | $ 1,170,980 | $ (724,912) |
Weighted average shares outstanding-basic | 16,247,898 | 13,621,406 |
Weighted average shares-diluted | 16,247,898 | 13,621,406 |
Earnings (loss) per share available to common shareholders | $ 0.072 | $ (0.053) |
Earnings (loss) per share-diluted available to common shareholders | $ 0.072 | $ (0.053) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 3 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Cash flows from operating activities: | ||
Net income (loss) | $ 1,170,980 | $ (647,662) |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||
Depreciation expense | 1,304,496 | 1,083,853 |
Gain on sale of equipment | (339,896) | (13,042) |
Provision for deferred taxes | (367,010) | 29,762 |
Amortization of intangible assets | 119,456 | 0 |
(Increase) decrease in contracts receivable | (4,265,751) | 1,150,219 |
(Increase) decrease in retainage receivable | (551,585) | 825,296 |
Decrease in other receivables | 494,771 | 2,781 |
Decrease in contract assets | 2,815,751 | 2,127,264 |
Decrease in prepaid expenses | 750,846 | 575,754 |
Increase in accounts payable | 58,226 | 561,337 |
Increase (decrease) in accrued expenses | 837,579 | (977,375) |
Increase (decrease) in contract liabilities | 4,375,775 | (1,130,515) |
Net cash provided by operating activities | 6,403,638 | 3,587,672 |
Cash flows from investing activities: | ||
Acquisition of West Virginia Pipeline, net of cash received of $250,000 | (3,250,000) | |
Investment in property and equipment | (942,703) | (1,467,091) |
Proceeds from sales of property and equipment | 463,862 | 13,500 |
Net cash used in investing activities | (478,841) | (4,703,591) |
Cash flows from financing activities: | ||
Preferred stock redemption | (1,262,750) | |
Preferred dividends paid | (154,500) | |
Borrowings on lines of credit and short term debt, net of (repayments) | (540,250) | 2,990,157 |
Principal payments on long term debt | (1,215,390) | (590,813) |
Net cash (used in) provided by financing activities | (3,018,390) | 2,244,844 |
Increase in cash and cash equivalents | 2,906,407 | 1,128,925 |
Cash and cash equivalents beginning of period | 8,226,739 | 11,216,820 |
Cash and cash equivalents end of period | 11,133,146 | 12,345,745 |
Supplemental schedule of noncash investing and financing activities: | ||
Purchases of property & equipment under financing agreements | 240,145 | 349,139 |
Note payable to finance West Virginia Pipeline acquisition | 3,000,000 | |
Debt assumed in acquisitions | 120,829 | |
Par value of common stock issued from preferred stock conversion | 263 | |
Cash paid during the year for: | ||
Interest | $ 186,580 | $ 76,517 |
Consolidated Statements of Ca_2
Consolidated Statements of Cash Flows (Parentheticals) | 3 Months Ended |
Dec. 31, 2021USD ($) | |
Consolidated Statements of Cash Flows | |
Cash received | $ 250,000 |
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, 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) | (647,662) | (647,662) | |||
Accrued preferred dividends | (77,250) | (77,250) | |||
Balance at Dec. 31, 2020 | $ 1,484 | 60,670,699 | (35,572,944) | (122) | 25,099,117 |
Balance (in shares) at Dec. 31, 2020 | 13,621,406 | ||||
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 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income (loss) | 1,170,980 | 1,170,980 | |||
Preferred share redemption, net of accrued dividends at September 30, 2021 | (1,210,525) | (1,210,525) | |||
Preferred share conversion | $ (263) | (263) | |||
Preferred share conversion (in shares) | 2,626,492 | ||||
Balance at Dec. 31, 2021 | $ 1,747 | $ 59,460,174 | $ (24,864,035) | $ (122) | $ 34,597,764 |
Balance (in shares) at Dec. 31, 2021 | 16,247,898 |
BUSINESS AND ORGANIZATION
BUSINESS AND ORGANIZATION | 3 Months Ended |
Dec. 31, 2021 | |
BUSINESS AND ORGANIZATION | |
BUSINESS AND ORGANIZATION | 1. BUSINESS AND ORGANIZATION Energy Services of America Corporation (“Energy Services” or the “Company”), formed in 2006, 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. West Virginia Pipeline, Inc. (“West Virginia Pipeline”), a wholly owned subsidiary of Energy Services, operates as a gas and water distribution contractor primarily in southern West Virginia. SQP Construction Group, Inc. (“SQP”), a wholly owned subsidiary of Energy Services, 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. The employees of West Virginia Pipeline and SQP are non-union and are managed independently from the Company’s union subsidiaries. Interim Financial Statements The accompanying unaudited consolidated financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”) and should be read in conjunction with the Company’s audited consolidated financial statements and footnotes thereto for the years ended September 30, 2021, and 2020 included in the Company’s Annual Report on Form 10-K filed with the SEC on December 29, 2021. Certain information and footnote disclosures normally included in annual financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) have been omitted pursuant to the interim financial reporting rules and regulations of the SEC. The financial statements reflect all adjustments (consisting primarily of normal recurring adjustments) that are, in the opinion of management, necessary for a fair presentation of the Company’s financial position and results of operations. The operating results for the three months ended December 31, 2021, and 2020 are not necessarily indicative of the results to be expected for the full year or any other interim period. Principles of Consolidation The consolidated financial statements of Energy Services include the accounts of Energy Services, 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 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. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 3 Months Ended |
Dec. 31, 2021 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Please refer to Note 2 “ Summary of Significant Accounting Policies |
REVENUE RECOGNITION
REVENUE RECOGNITION | 3 Months Ended |
Dec. 31, 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, if incurred, 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 | 3 Months Ended |
Dec. 31, 2021 | |
DISAGGREGATION OF REVENUE | |
DISAGGREGATION OF REVENUE | 4. DISAGGREGATION OF REVENUE The Company disaggregates 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 three months ended December 31, 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 three months ended December 31, 2021, and 2020: Three Months Ended December 31, 2021 Electrical, Gas & Water Gas & Petroleum Mechanical, and Total revenue Distribution Transmission General from contracts Lump sum contracts $ — $ — $ 10,939,201 $ 10,939,201 Unit price contracts 11,962,034 11,238,517 — 23,200,551 Cost plus and T&M contracts — — 8,519,373 8,519,373 Total revenue from contracts $ 11,962,034 $ 11,238,517 $ 19,458,574 $ 42,659,125 Earned over time $ 7,919,922 $ 11,238,517 $ 18,819,986 $ 37,978,425 Earned at point in time 4,042,112 — 638,588 4,680,700 Total revenue from contracts $ 11,962,034 $ 11,238,517 $ 19,458,574 $ 42,659,125 Three Months Ended December 31, 2020 Electrical, Gas &Water Gas & Petroleum Mechanical, and Total revenue Distribution Transmission General from contracts Lump sum contracts $ — $ — $ 11,666,631 $ 11,666,631 Unit price contracts 7,131,639 8,402,592 — 15,534,231 Cost plus and T&M contracts — 290,000 4,518,934 4,808,934 Total revenue from contracts $ 7,131,639 $ 8,692,592 $ 16,185,565 $ 32,009,796 Earned over time $ 3,707,181 $ 8,402,592 $ 16,013,755 $ 28,123,528 Earned at point in time 3,424,458 290,000 171,810 3,886,268 Total revenue from contracts $ 7,131,639 $ 8,692,592 $ 16,185,565 $ 32,009,796 |
CONTRACT BALANCES
CONTRACT BALANCES | 3 Months Ended |
Dec. 31, 2021 | |
CONTRACT BALANCES | |
CONTRACT BALANCES | 5. CONTRACT BALANCES The Company’s accounts receivable consists of amounts that have been billed to customers. Collateral is generally not required. The Company’s contracts have billing terms including daily, weekly, monthly, and at project completion depending on the customer and contract agreement. Payment terms are generally within 30 During the three months ended December 31, 2021, we recognized revenue of $1.9 million that was included in the contract liability balance at September 30, 2021. Accounts receivable-trade, net of allowance for doubtful accounts, retentions September 30, 2021 December 31, 2021 Change Accounts receivable-trade, net of allowance for doubtful accounts $ 21,022,207 $ 25,287,958 $ 4,265,751 Contract assets Cost and estimated earnings in excess of billings $ 8,730,402 $ 5,914,651 $ (2,815,751) Contract liabilities Billings in excess of cost and estimated earnings $ 3,153,290 $ 7,529,065 $ 4,375,775 |
PERFORMANCE OBLIGATIONS
PERFORMANCE OBLIGATIONS | 3 Months Ended |
Dec. 31, 2021 | |
PERFORMANCE OBLIGATIONS | |
PERFORMANCE OBLIGATIONS | 6. PERFORMANCE OBLIGATIONS Generally, our contracts contain one performance obligation that is satisfied over time because our performance typically creates or enhances an asset that the customer controls as the asset is created or enhanced. We recognize revenue as performance obligations are satisfied and control of the promised good and service is transferred to the customer. Revenue is ordinarily recognized over time as control is transferred to the customers by measuring the progress toward complete satisfaction of the performance obligation(s) using an input (i.e., “cost-to-cost”) method. Under the cost-to-cost method, costs incurred to-date are generally the best depiction of transfer of control. All contract costs, including those associated with affirmative claims, change orders and back charges, are recorded as incurred and revisions to estimated total costs are reflected as soon as the obligation to perform is determined. Contract costs consist of direct costs on contracts, including labor and materials, amounts payable to subcontractors, direct overhead costs and equipment expense (primarily depreciation, fuel, maintenance and repairs). During the three months ended December 31, 2021, there was no revenue recognized as a result of changes in contract transaction price related to performance obligations that were satisfied prior to September 30, 2021. Changes in contract transaction price can result from such items as changes in projected profit, executed or estimated change orders, and unresolved contract modifications and claims. The Company does not sell warranties for its construction services. At December 31, 2021, the Company had $40.5 million in remaining unsatisfied performance obligations, in which revenue is expected to be recognized in less than twelve months. |
UNCOMPLETED CONTRACTS
UNCOMPLETED CONTRACTS | 3 Months Ended |
Dec. 31, 2021 | |
UNCOMPLETED CONTRACTS | |
UNCOMPLETED CONTRACTS | 7. UNCOMPLETED CONTRACTS Costs, estimated earnings, and billings on uncompleted contracts as of December 31, 2021, and September 30, 2021, are summarized as follows: December 31, 2021 September 30, 2021 Costs incurred on contracts in progress $ 71,979,534 $ 64,903,618 Estimated earnings, net of estimated losses 14,076,321 13,280,334 86,055,855 78,183,952 Less billings to date 87,670,269 72,606,840 $ (1,614,414) $ 5,577,112 Costs and estimated earnings in excess of billed on uncompleted contracts $ 5,914,651 $ 8,730,402 Less billings in excess of costs and estimated earnings on uncompleted contracts 7,529,065 3,153,290 $ (1,614,414) $ 5,577,112 Backlog at December 31, 2021, and September 30, 2021, was $101.6 million and $72.2 million, respectively. |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 3 Months Ended |
Dec. 31, 2021 | |
FAIR VALUE MEASUREMENTS | |
FAIR VALUE MEASUREMENTS | 8. 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. 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 for bank loans with similar terms and maturities. The fair value of the aggregate principal amount of the Company’s fixed-rate debt of $8.7 million at December 31, 2021, was $8.8 million. 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. All receivables and payables are carried at net realizable value which approximates fair value because of their short duration to maturity. |
EARNINGS (LOSS) PER SHARE
EARNINGS (LOSS) PER SHARE | 3 Months Ended |
Dec. 31, 2021 | |
EARNINGS (LOSS) PER SHARE | |
EARNINGS PER SHARE | 9. EARNINGS (LOSS) PER SHARE The amounts used to compute the earnings (loss) per share for the three months ended December 31, 2021, and 2020 are summarized below. Three Months Ended Three Months Ended December 31, December 31, 2021 2020 Net income (loss) $ 1,170,980 $ (647,662) Dividends on preferred stock — 77,250 Income (loss) available to common shareholders $ 1,170,980 $ (724,912) Weighted average shares outstanding-basic 16,247,898 13,621,406 Weighted average shares outstanding-diluted 16,247,898 13,621,406 Earnings (loss) per share available to common shareholders $ 0.072 $ (0.053) Earnings (loss) per share available to common shareholders-diluted $ 0.072 $ (0.053) |
INCOME TAXES
INCOME TAXES | 3 Months Ended |
Dec. 31, 2021 | |
INCOME TAXES | |
INCOME TAXES | 10. INCOME TAXES The components of income taxes are as follows: Three Months Ended December 31, 2021 December 31, 2020 Federal Current $ 671,808 $ (77,380) Deferred (286,268) 23,214 Total 385,540 (54,166) State Current 189,485 (21,824) Deferred (80,742) 6,548 Total 108,743 (15,276) Total income tax (benefit) expense $ 494,283 $ (69,442) The effective income tax rate for the three months ended December 31, 2021, was 29.7%, as compared to 9.7% for the same period in 2020. Effective income tax rates are estimates and may vary from period to period due to changes in the amount of taxable income and non-deductible expenses. Per diem paid to employees on construction projects and entertainment expenses are only partially deductible from taxable income and can have a significant impact on the effective tax rate. For the three months ended December 31, 2021, the non-deductible portion of per diem and entertainment expenses resulted in an approximate $129,000 increase in taxable income as compared to $76,000 for the same period in 2020. The income tax effects of temporary differences giving rise to the deferred tax assets and liabilities are as follows: December 31, September 30, 2021 2021 Deferred tax liabilities Property and equipment $ 4,005,237 $ 4,883,398 Other — 37,582 Total deferred tax liabilities $ 4,005,237 $ 4,920,980 Deferred income tax assets Other $ 314,633 $ 358,400 Net operating loss carryforward 1,215,148 2,529,147 Total deferred tax assets $ 1,529,781 $ 2,887,547 Total net deferred tax liabilities $ 2,475,456 $ 2,033,433 The Company and all subsidiaries file a consolidated federal and various state income tax returns on a fiscal year basis. With few exceptions, the Company is no longer subject to U.S. federal, state, or local income tax examinations for years ended prior to September 30, 2018. 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 selling and administrative expenses. |
SHORT-TERM AND LONG-TERM DEBT
SHORT-TERM AND LONG-TERM DEBT | 3 Months Ended |
Dec. 31, 2021 | |
SHORT-TERM AND LONG-TERM DEBT | |
SHORT-TERM AND LONG-TERM DEBT | 11. SHORT-TERM AND LONG-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 $12.5 million as of December 31, 2021. The Company had $4.5 million in borrowings on the line of credit, leaving $8.0 million available on the line of credit as of December 31, 2021. The interest rate at December 31, 2021, was 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%. 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 believes it was in compliance with all covenants for the $12.5 million component of Operating Line of Credit (2021) at December 31, 2021. 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 December 31, 2021, there was no outstanding balance for insurance premiums financed. A summary of short-term and long-term debt as of December 31, 2021, and September 30, 2021, is as follows: December 31, September 30, 2021 2021 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 $ 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. 3,022,896 3,183,549 Notes payable to finance companies, due in monthly installments totaling $68,079 at December 31, 2021 and $70,062 at September 30, 2021, including interest ranging from 0.00% to 6.03%, final payments due January 2022 through August 2026, secured by equipment. 1,080,656 1,066,580 Note payable to finance company for insurance premiums financed, due in monthly installments totaling $272,000, including interest rate at 2.70%, final payment made November 2021. — 540,250 Notes payable to bank, due in monthly installments totaling 906,337 919,017 Notes payable to bank, due in monthly installments totaling 501,569 530,750 Notes payable to bank, due in monthly installments totaling 585,645 872,452 Notes payable to David Bolton and Daniel Bolton, due in annual installments totaling $500,000, including interest at 3.25%, final payment due December 31, 2026, unsecured 2,357,500 2,850,000 Notes payable to bank, monthly interest payments at 4.25% of outstanding balance between August 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 January 2026, secured by equipment, guaranteed by certain directors of the Company. 3,000,000 3,000,000 Total debt 15,954,603 17,462,598 Less current maturities 7,681,197 8,441,824 Total long term debt $ 8,273,406 $ 9,020,774 |
ACQUISITIONS
ACQUISITIONS | 3 Months Ended |
Dec. 31, 2021 | |
ACQUISITIONS | |
ACQUISITIONS | 1 2. ACQUISITIONS On December 31, 2020, Energy Services completed an asset purchase of West Virginia Pipeline, which became a wholly owned subsidiary of Energy Services that operates as a gas and water distribution contractor primarily in southern West Virginia. Energy Services paid $3.5 million in cash and acquired a $3.0 million seller note with a term of five years with an interest rate of 3.25%. The Company incurred approximately $150,000 in expenses related to the acquisition. West Virginia Pipeline earned revenues of $2.3 million for the three months ended December 31, 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 $257,000 for the three months ended December 31, 2021. ASC 805-10-50-2 requires public companies that present comparative financial statements to present pro forma financial statements as though the business combination that occurred during the current fiscal year had occurred as of the beginning of the comparable prior annual reporting period. As allowed under ASC 805-10-50-2, the Company finds this information impracticable to provide for the interim periods presented due to the lack of availability of meaningful financial statements of the acquired companies that comply with U.S. Generally Accepted Accounting Principles. Energy Services accounts for business combinations under the acquisition method in accordance with ASC Topic 805, Business Combinations. Accordingly, for each transaction, the purchase price is allocated to the fair value of the assets acquired and liabilities assumed as of the date of the acquisition. 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 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 goodwill generated by the acquisition is largely the result of the high return on capital generated by West Virginia Pipeline. While West Virginia Pipeline is 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 assisted 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 | 3 Months Ended |
Dec. 31, 2021 | |
GOODWILL AND INTANGIBLE ASSETS | |
GOODWILL AND INTANGIBLE ASSETS | 13. GOODWILL AND INTANGIBLE ASSETS The Company follows the guidance of ASC 350-20-35-3 Intangibles-Goodwill and Other (Topic 350) the current guidance, companies can first choose to assess any impairment based on qualitative factors (Step 0). If a company fails this test or decides to bypass this step, it must proceed with a two-step quantitative assessment of goodwill impairment. The Company did not have a goodwill impairment at December 31, 2021. A table of the Company’s goodwill is below: September 30, December 31, 2021 2021 Beginning balance $ — $ 1,814,317 Acquired 1,814,317 — Impairment — — Ending balance $ 1,814,317 $ 1,814,317 A table of the Company’s intangible assets subject to amortization at December 31, 2021, is below: Accumulated Amortization and Remaining Life at Amortization at Accumulated Amortization and Amortization and Impairment Three December 31, December 31, Impairment at Impairment at Impairment of Months Ended Net Book Intangible assets: 2021 Original Cost 2021 December 31, 2021 December 31, 2021 September 30, 2021 December 31, Value West Virginia Pipeline Customer Relationships 108 months $ 2,209,724 $ 220,967 $ — $ 220,967 $ 165,725 $ 55,242 $ 1,988,757 Tradename 108 months 263,584 26,363 — 26,363 19,772 6,591 237,221 Non-competes 12 months 83,203 41,603 — 41,603 31,202 10,401 41,600 Revolt Energy Employment agreement/non-compete 28 months 100,000 18,056 43,056 61,112 13,889 47,223 38,888 Total intangible assets $ 2,656,511 $ 306,989 $ 43,056 $ 350,045 $ 230,588 $ 119,457 $ 2,306,466 The amortization and impairment on identifiable intangible assets for the three months ended December 31, 2021, and 2020 was $ 119,000 Amortization expense associated with the identifiable intangible assets is expected to be as follows: Amortization Expense January 1-December 31, 2022 $ 305,600 January 1-December 31, 2023 264,000 January 1-December 31, 2024 252,884 January 1-December 31, 2025 247,332 January 1-December 31, 2026 247,332 After 989,318 Total $ 2,306,466 |
LEASES
LEASES | 3 Months Ended |
Dec. 31, 2021 | |
LEASES | |
LEASES | 14. LEASES 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 agreed 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. During the three months ended December 31, 2021, the Company entered into two lease agreements of construction equipment for a combined $160,000. The leases have a term of twenty-two months with an interest rate of 0%, combined monthly installment payments of $6,645 and are cancellable 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 $1.9 million and $1.0 million for the three months ended December 31, 2021, and 2020, respectively. |
PAYCHECK PROTECTION PROGRAM LOA
PAYCHECK PROTECTION PROGRAM LOANS | 3 Months Ended |
Dec. 31, 2021 | |
PAYCHECK PROTECTION PROGRAM LOANS | |
PAYCHECK PROTECTION PROGRAM LOANS | 15. PAYCHECK PROTECTION PROGRAM LOANS Due to the economic uncertainties created by COVID-19 and limited operating funds available, the Company applied for loans under the Paycheck Protection Program (“PPP”). On April 15, 2020, Energy Services of America Corporation and subsidiaries C.J. Hughes Construction Company, Contractors Rental Corporation and Nitro Construction Services, Inc. entered into separate Paycheck Protection Program notes effective April 7, 2020, with United Bank, Inc. as the lender (“Lender”) in an aggregate principal amount of $13,139,100 pursuant to the PPP (collectively, the “PPP Loan”). In a special meeting held on April 27, 2020, the Board of Directors of the Company unanimously voted to return $3.3 million of the PPP Loan funds after discussing the financing needs of the Company and subsidiaries. That left the Company and subsidiaries with $9.8 million in PPP Loans to fund operations. In fiscal year 2021, the Company received notice that the SBA had granted forgiveness and repaid $9.8 million of the PPP borrowings to the Lender. Borrowers must retain |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 3 Months Ended |
Dec. 31, 2021 | |
SUBSEQUENT EVENTS | |
SUBSEQUENT EVENTS | 16. SUBSEQUENT EVENTS On January 27, 2022, the Company announced that it submitted an application to list its common stock on the Nasdaq Capital Market. The Company believes that it meets or will meet the financial, liquidity, and corporate governance requirements for listing on the Nasdaq Capital Market; however, any move to Nasdaq is contingent upon fulfilling those requirements and Nasdaq approval. Management has evaluated subsequent events through the date which the financial statements were available for issue. There have been no other material events during the period, other than noted above, that would either impact the results reflected in the report or the Company’s results going forward. |
BUSINESS AND ORGANIZATION (Poli
BUSINESS AND ORGANIZATION (Policies) | 3 Months Ended |
Dec. 31, 2021 | |
BUSINESS AND ORGANIZATION | |
Interim Financial Statements | Interim Financial Statements The accompanying unaudited consolidated financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”) and should be read in conjunction with the Company’s audited consolidated financial statements and footnotes thereto for the years ended September 30, 2021, and 2020 included in the Company’s Annual Report on Form 10-K filed with the SEC on December 29, 2021. Certain information and footnote disclosures normally included in annual financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) have been omitted pursuant to the interim financial reporting rules and regulations of the SEC. The financial statements reflect all adjustments (consisting primarily of normal recurring adjustments) that are, in the opinion of management, necessary for a fair presentation of the Company’s financial position and results of operations. The operating results for the three months ended December 31, 2021, and 2020 are not necessarily indicative of the results to be expected for the full year or any other interim period. |
Principles of Consolidation | Principles of Consolidation The consolidated financial statements of Energy Services include the accounts of Energy Services, 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 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. |
DISAGGREGATION OF REVENUE (Tabl
DISAGGREGATION OF REVENUE (Tables) | 3 Months Ended |
Dec. 31, 2021 | |
DISAGGREGATION OF REVENUE | |
Schedule of disaggregation of revenue | Three Months Ended December 31, 2021 Electrical, Gas & Water Gas & Petroleum Mechanical, and Total revenue Distribution Transmission General from contracts Lump sum contracts $ — $ — $ 10,939,201 $ 10,939,201 Unit price contracts 11,962,034 11,238,517 — 23,200,551 Cost plus and T&M contracts — — 8,519,373 8,519,373 Total revenue from contracts $ 11,962,034 $ 11,238,517 $ 19,458,574 $ 42,659,125 Earned over time $ 7,919,922 $ 11,238,517 $ 18,819,986 $ 37,978,425 Earned at point in time 4,042,112 — 638,588 4,680,700 Total revenue from contracts $ 11,962,034 $ 11,238,517 $ 19,458,574 $ 42,659,125 Three Months Ended December 31, 2020 Electrical, Gas &Water Gas & Petroleum Mechanical, and Total revenue Distribution Transmission General from contracts Lump sum contracts $ — $ — $ 11,666,631 $ 11,666,631 Unit price contracts 7,131,639 8,402,592 — 15,534,231 Cost plus and T&M contracts — 290,000 4,518,934 4,808,934 Total revenue from contracts $ 7,131,639 $ 8,692,592 $ 16,185,565 $ 32,009,796 Earned over time $ 3,707,181 $ 8,402,592 $ 16,013,755 $ 28,123,528 Earned at point in time 3,424,458 290,000 171,810 3,886,268 Total revenue from contracts $ 7,131,639 $ 8,692,592 $ 16,185,565 $ 32,009,796 |
CONTRACT BALANCES (Tables)
CONTRACT BALANCES (Tables) | 3 Months Ended |
Dec. 31, 2021 | |
CONTRACT BALANCES | |
Schedule of accounts receivable-trade, net of allowance for doubtful accounts, retainages receivable, contract assets and contract liabilities | September 30, 2021 December 31, 2021 Change Accounts receivable-trade, net of allowance for doubtful accounts $ 21,022,207 $ 25,287,958 $ 4,265,751 Contract assets Cost and estimated earnings in excess of billings $ 8,730,402 $ 5,914,651 $ (2,815,751) Contract liabilities Billings in excess of cost and estimated earnings $ 3,153,290 $ 7,529,065 $ 4,375,775 |
UNCOMPLETED CONTRACTS (Tables)
UNCOMPLETED CONTRACTS (Tables) | 3 Months Ended |
Dec. 31, 2021 | |
UNCOMPLETED CONTRACTS | |
Schedule of costs, estimated earnings and billings on uncompleted contracts | December 31, 2021 September 30, 2021 Costs incurred on contracts in progress $ 71,979,534 $ 64,903,618 Estimated earnings, net of estimated losses 14,076,321 13,280,334 86,055,855 78,183,952 Less billings to date 87,670,269 72,606,840 $ (1,614,414) $ 5,577,112 Costs and estimated earnings in excess of billed on uncompleted contracts $ 5,914,651 $ 8,730,402 Less billings in excess of costs and estimated earnings on uncompleted contracts 7,529,065 3,153,290 $ (1,614,414) $ 5,577,112 |
EARNINGS (LOSS) PER SHARE (Tabl
EARNINGS (LOSS) PER SHARE (Tables) | 3 Months Ended |
Dec. 31, 2021 | |
EARNINGS (LOSS) PER SHARE | |
Schedule to compute earnings per share | Three Months Ended Three Months Ended December 31, December 31, 2021 2020 Net income (loss) $ 1,170,980 $ (647,662) Dividends on preferred stock — 77,250 Income (loss) available to common shareholders $ 1,170,980 $ (724,912) Weighted average shares outstanding-basic 16,247,898 13,621,406 Weighted average shares outstanding-diluted 16,247,898 13,621,406 Earnings (loss) per share available to common shareholders $ 0.072 $ (0.053) Earnings (loss) per share available to common shareholders-diluted $ 0.072 $ (0.053) |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 3 Months Ended |
Dec. 31, 2021 | |
INCOME TAXES | |
Schedule of components of income taxes | Three Months Ended December 31, 2021 December 31, 2020 Federal Current $ 671,808 $ (77,380) Deferred (286,268) 23,214 Total 385,540 (54,166) State Current 189,485 (21,824) Deferred (80,742) 6,548 Total 108,743 (15,276) Total income tax (benefit) expense $ 494,283 $ (69,442) |
Schedule of income tax effects to deferred tax assets and liabilities | December 31, September 30, 2021 2021 Deferred tax liabilities Property and equipment $ 4,005,237 $ 4,883,398 Other — 37,582 Total deferred tax liabilities $ 4,005,237 $ 4,920,980 Deferred income tax assets Other $ 314,633 $ 358,400 Net operating loss carryforward 1,215,148 2,529,147 Total deferred tax assets $ 1,529,781 $ 2,887,547 Total net deferred tax liabilities $ 2,475,456 $ 2,033,433 |
SHORT-TERM AND LONG-TERM DEBT (
SHORT-TERM AND LONG-TERM DEBT (Tables) | 3 Months Ended |
Dec. 31, 2021 | |
SHORT-TERM AND LONG-TERM DEBT | |
Schedule of summary of short-term and long-term debt | December 31, September 30, 2021 2021 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 $ 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. 3,022,896 3,183,549 Notes payable to finance companies, due in monthly installments totaling $68,079 at December 31, 2021 and $70,062 at September 30, 2021, including interest ranging from 0.00% to 6.03%, final payments due January 2022 through August 2026, secured by equipment. 1,080,656 1,066,580 Note payable to finance company for insurance premiums financed, due in monthly installments totaling $272,000, including interest rate at 2.70%, final payment made November 2021. — 540,250 Notes payable to bank, due in monthly installments totaling 906,337 919,017 Notes payable to bank, due in monthly installments totaling 501,569 530,750 Notes payable to bank, due in monthly installments totaling 585,645 872,452 Notes payable to David Bolton and Daniel Bolton, due in annual installments totaling $500,000, including interest at 3.25%, final payment due December 31, 2026, unsecured 2,357,500 2,850,000 Notes payable to bank, monthly interest payments at 4.25% of outstanding balance between August 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 January 2026, secured by equipment, guaranteed by certain directors of the Company. 3,000,000 3,000,000 Total debt 15,954,603 17,462,598 Less current maturities 7,681,197 8,441,824 Total long term debt $ 8,273,406 $ 9,020,774 |
ACQUISITIONS (Tables)
ACQUISITIONS (Tables) | 3 Months Ended |
Dec. 31, 2021 | |
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) | 3 Months Ended |
Dec. 31, 2021 | |
GOODWILL AND INTANGIBLE ASSETS | |
Summary of changes in goodwill | September 30, December 31, 2021 2021 Beginning balance $ — $ 1,814,317 Acquired 1,814,317 — Impairment — — Ending balance $ 1,814,317 $ 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) the current guidance, companies can first choose to assess any impairment based on qualitative factors (Step 0). If a company fails this test or decides to bypass this step, it must proceed with a two-step quantitative assessment of goodwill impairment. The Company did not have a goodwill impairment at December 31, 2021. A table of the Company’s goodwill is below: September 30, December 31, 2021 2021 Beginning balance $ — $ 1,814,317 Acquired 1,814,317 — Impairment — — Ending balance $ 1,814,317 $ 1,814,317 A table of the Company’s intangible assets subject to amortization at December 31, 2021, is below: Accumulated Amortization and Remaining Life at Amortization at Accumulated Amortization and Amortization and Impairment Three December 31, December 31, Impairment at Impairment at Impairment of Months Ended Net Book Intangible assets: 2021 Original Cost 2021 December 31, 2021 December 31, 2021 September 30, 2021 December 31, Value West Virginia Pipeline Customer Relationships 108 months $ 2,209,724 $ 220,967 $ — $ 220,967 $ 165,725 $ 55,242 $ 1,988,757 Tradename 108 months 263,584 26,363 — 26,363 19,772 6,591 237,221 Non-competes 12 months 83,203 41,603 — 41,603 31,202 10,401 41,600 Revolt Energy Employment agreement/non-compete 28 months 100,000 18,056 43,056 61,112 13,889 47,223 38,888 Total intangible assets $ 2,656,511 $ 306,989 $ 43,056 $ 350,045 $ 230,588 $ 119,457 $ 2,306,466 |
Schedule of amortization on identifiable intangible assets | Amortization Expense January 1-December 31, 2022 $ 305,600 January 1-December 31, 2023 264,000 January 1-December 31, 2024 252,884 January 1-December 31, 2025 247,332 January 1-December 31, 2026 247,332 After 989,318 Total $ 2,306,466 |
DISAGGREGATION OF REVENUE (Deta
DISAGGREGATION OF REVENUE (Details) - USD ($) | 3 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Disaggregation of Revenue [Line Items] | ||
Total revenue from contracts | $ 42,659,125 | $ 32,009,796 |
Earned over time | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue from contracts | 37,978,425 | 28,123,528 |
Earned at point in time | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue from contracts | 4,680,700 | 3,886,268 |
Lump sum contracts | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue from contracts | 10,939,201 | 11,666,631 |
Unit price contracts | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue from contracts | 23,200,551 | 15,534,231 |
Cost plus and T&M contracts | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue from contracts | 8,519,373 | 4,808,934 |
Gas & Water Distribution | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue from contracts | 11,962,034 | 7,131,639 |
Gas & Water Distribution | Earned over time | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue from contracts | 7,919,922 | 3,707,181 |
Gas & Water Distribution | Earned at point in time | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue from contracts | 4,042,112 | 3,424,458 |
Gas & Water Distribution | Unit price contracts | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue from contracts | 11,962,034 | 7,131,639 |
Gas & Petroleum Transmission | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue from contracts | 11,238,517 | 8,692,592 |
Gas & Petroleum Transmission | Earned over time | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue from contracts | 11,238,517 | 8,402,592 |
Gas & Petroleum Transmission | Earned at point in time | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue from contracts | 290,000 | |
Gas & Petroleum Transmission | Unit price contracts | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue from contracts | 11,238,517 | 8,402,592 |
Gas & Petroleum Transmission | Cost plus and T&M contracts | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue from contracts | 290,000 | |
Electrical and Mechanical | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue from contracts | 19,458,574 | 16,185,565 |
Electrical and Mechanical | Earned over time | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue from contracts | 18,819,986 | 16,013,755 |
Electrical and Mechanical | Earned at point in time | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue from contracts | 638,588 | 171,810 |
Electrical and Mechanical | Lump sum contracts | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue from contracts | 10,939,201 | 11,666,631 |
Electrical and Mechanical | Cost plus and T&M contracts | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue from contracts | $ 8,519,373 | $ 4,518,934 |
CONTRACT BALANCES (Details)
CONTRACT BALANCES (Details) - USD ($) | 3 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2021 | |
CONTRACT BALANCES | |||
Accounts receivable-trade, net of allowance for doubtful accounts | $ 25,287,958 | $ 21,022,207 | |
Change in accounts receivable-trade, net of allowance for doubtful accounts | 4,265,751 | $ (1,150,219) | |
Contract assets | |||
Cost and estimated earnings in excess of billings | 5,914,651 | 8,730,402 | |
Change in cost and estimated earnings in excess of billings | (2,815,751) | (2,127,264) | |
Contract liabilities | |||
Less billings in excess of costs and estimated earnings on uncompleted contracts | 7,529,065 | $ 3,153,290 | |
Change in billings in excess of cost and estimated earnings | $ 4,375,775 | $ (1,130,515) |
CONTRACT BALANCES - Additional
CONTRACT BALANCES - Additional Information (Details) $ in Millions | 3 Months Ended |
Dec. 31, 2021USD ($) | |
Contract Balances [Line Items] | |
Recognized revenue included in contract liability | $ 1.9 |
Minimum | |
Contract Balances [Line Items] | |
Billing and payment term | 30 days |
Maximum | |
Contract Balances [Line Items] | |
Billing and payment term | 45 days |
PERFORMANCE OBLIGATIONS (Detail
PERFORMANCE OBLIGATIONS (Details) | 3 Months Ended |
Dec. 31, 2021USD ($) | |
PERFORMANCE OBLIGATIONS | |
Recognized revenue | $ 0 |
Amount of remaining unsatisfied performance obligations | $ 40,500,000 |
UNCOMPLETED CONTRACTS - Summary
UNCOMPLETED CONTRACTS - Summary of costs, estimated earnings, and billings on uncompleted contracts (Details) - USD ($) | Dec. 31, 2021 | Sep. 30, 2021 |
UNCOMPLETED CONTRACTS | ||
Costs incurred on contracts in progress | $ 71,979,534 | $ 64,903,618 |
Estimated earnings, net of estimated losses | 14,076,321 | 13,280,334 |
Costs of uncompleted contracts including net estimated earnings | 86,055,855 | 78,183,952 |
Less billings to date | 87,670,269 | 72,606,840 |
Unbilled Contracts | (1,614,414) | 5,577,112 |
Costs and estimated earnings in excess of billed on uncompleted contracts | 5,914,651 | 8,730,402 |
Less billings in excess of costs and estimated earnings on uncompleted contracts | 7,529,065 | 3,153,290 |
Unbilled contracts receivable | $ (1,614,414) | $ 5,577,112 |
UNCOMPLETED CONTRACTS - Backlog
UNCOMPLETED CONTRACTS - Backlog (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Sep. 30, 2021 |
UNCOMPLETED CONTRACTS | ||
Backlog | $ 101.6 | $ 72.2 |
FAIR VALUE MEASUREMENTS (Detail
FAIR VALUE MEASUREMENTS (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Sep. 30, 2021 |
FAIR VALUE MEASUREMENTS | ||
Debt principal amount | $ 8.7 | $ 10 |
Debt fair value | $ 8.8 | $ 9.9 |
EARNINGS (LOSS) PER SHARE (Deta
EARNINGS (LOSS) PER SHARE (Details) - USD ($) | 3 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
EARNINGS (LOSS) PER SHARE | ||
Net income | $ 1,170,980 | $ (647,662) |
Dividends on preferred stock | 77,250 | |
Income (loss) available to common shareholders | $ 1,170,980 | $ (724,912) |
Weighted average shares outstanding-basic | 16,247,898 | 13,621,406 |
Weighted average shares outstanding-diluted | 16,247,898 | 13,621,406 |
Earnings (loss) per share available to common shareholders | $ 0.072 | $ (0.053) |
Earnings (loss) per share available to common shareholders-diluted | $ 0.072 | $ (0.053) |
INCOME TAXES - Components of in
INCOME TAXES - Components of income taxes (Details) - USD ($) | 3 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Federal | ||
Current | $ 671,808 | $ (77,380) |
Deferred | (286,268) | 23,214 |
Total | 385,540 | (54,166) |
State | ||
Current | 189,485 | (21,824) |
Deferred | (80,742) | 6,548 |
Total | 108,743 | (15,276) |
Total income tax (benefit) expense | $ 494,283 | $ (69,442) |
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 ($) | Dec. 31, 2021 | Sep. 30, 2021 |
Deferred income tax liabilities | ||
Property and equipment | $ 4,005,237 | $ 4,883,398 |
Other | 37,582 | |
Total deferred income tax liabilities | 4,005,237 | 4,920,980 |
Deferred income tax assets | ||
Other | 314,633 | 358,400 |
Net operating loss carryforward | 1,215,148 | 2,529,147 |
Total deferred income tax assets | 1,529,781 | 2,887,547 |
Total net deferred income tax liabilities | $ 2,475,456 | $ 2,033,433 |
INCOME TAXES - Additional Infor
INCOME TAXES - Additional Information (Details) - USD ($) | 3 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
INCOME TAXES | ||
Effective income tax rate | 29.70% | 9.70% |
Increase in taxable income due to non deductible expense | $ 129,000 | $ 76,000 |
SHORT-TERM AND LONG-TERM DEBT -
SHORT-TERM AND LONG-TERM DEBT - Summary of short-term and long-term debt (Details) - USD ($) | Dec. 31, 2021 | Sep. 30, 2021 |
Debt Instrument [Line Items] | ||
Total debt | $ 15,954,603 | $ 17,462,598 |
Less current maturities | 7,681,197 | 8,441,824 |
Total long term debt | 8,273,406 | 9,020,774 |
Notes payable to bank, monthly interest rate at 4.25%, final payment due January 2026 | ||
Debt Instrument [Line Items] | ||
Total debt | 3,000,000 | 3,000,000 |
Note payable to finance company for insurance premiums financed final due November 2021 in monthly installments | ||
Debt Instrument [Line Items] | ||
Total debt | 540,250 | |
Notes payable to bank, final due by November 2034 | ||
Debt Instrument [Line Items] | ||
Total debt | 906,337 | 919,017 |
Notes payable to bank, final due by November 2025 | ||
Debt Instrument [Line Items] | ||
Total debt | 501,569 | 530,750 |
Notes payable to bank due September 2022 | ||
Debt Instrument [Line Items] | ||
Total debt | 585,645 | 872,452 |
Notes payable to David and Daniel Bolton due final payment December 31, 2026 | ||
Debt Instrument [Line Items] | ||
Total debt | 2,357,500 | 2,850,000 |
Line of credit payable to bank renewed on 3 August 2021, final due by 28 June 2022 | ||
Debt Instrument [Line Items] | ||
Total debt | 4,500,000 | 4,500,000 |
Notes payable to bank final due by 25 March 2026 | ||
Debt Instrument [Line Items] | ||
Total debt | 3,022,896 | 3,183,549 |
Notes Payable To Finance Companies Due January 2022 Through August 2026 [Member] | ||
Debt Instrument [Line Items] | ||
Total debt | $ 1,080,656 | $ 1,066,580 |
SHORT-TERM AND LONG-TERM DEBT_2
SHORT-TERM AND LONG-TERM DEBT - Summary of short-term and long-term debt (Parenthetical) (Details) - USD ($) | 3 Months Ended | 12 Months Ended |
Dec. 31, 2021 | Sep. 30, 2021 | |
Line of credit payable to bank renewed on 3 August 2021, final due by 28 June 2022 | ||
Debt Instrument [Line Items] | ||
Interest rate | 4.99% | |
Notes payable to bank final due by 25 March 2026 | ||
Debt Instrument [Line Items] | ||
Note payable in monthly or Annual installments | $ 64,853 | |
Interest rate | 4.25% | |
Notes Payable To Finance Companies Due January 2022 Through August 2026 [Member] | ||
Debt Instrument [Line Items] | ||
Note payable in monthly or Annual installments | $ 68,079 | $ 70,062 |
Notes Payable To Finance Companies Due January 2022 Through August 2026 [Member] | Minimum | ||
Debt Instrument [Line Items] | ||
Interest rate | 0.00% | |
Notes Payable To Finance Companies Due January 2022 Through August 2026 [Member] | Maximum | ||
Debt Instrument [Line Items] | ||
Interest rate | 6.03% | |
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 due September 2022 | ||
Debt Instrument [Line Items] | ||
Note payable in monthly or Annual installments | $ 98,865 | |
Interest rate | 4.99% | |
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% | |
Notes payable to bank, monthly interest rate at 4.25%, final payment due January 2026 | ||
Debt Instrument [Line Items] | ||
Note payable in monthly or Annual installments | $ 68,073 | |
Interest rate | 4.25% | |
Note payable to finance company for insurance premiums financed final due November 2021 in monthly installments | ||
Debt Instrument [Line Items] | ||
Note payable in monthly or Annual installments | $ 272,000 | |
Interest rate | 2.70% |
SHORT-TERM AND LONG-TERM DEBT_3
SHORT-TERM AND LONG-TERM DEBT - Interest rates (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | |
Jan. 31, 2020 | Dec. 31, 2021 | Sep. 30, 2021 | |
Line of Credit Facility [Line Items] | |||
Line of credit | $ 4,500 | ||
Insurance policy amount | $ 3,200 | ||
Insurance policy premium outstanding | $ 0 | ||
Financing agreement "Operating Line of Credit (2021)" | |||
Line of Credit Facility [Line Items] | |||
Line of credit | 4,500 | ||
Amount available to borrowing | 8,000 | ||
Financing agreement Operating Line of Credit (2021) | |||
Line of Credit Facility [Line Items] | |||
Amount available to borrowing | 12,500 | ||
United Bank, Inc. | Financing agreement "Operating Line of Credit (2021)" | |||
Line of Credit Facility [Line Items] | |||
Line of credit | $ 15,000 | ||
Interest rate on the line of credit description | “Wall Street Journal” Prime Rate | ||
Interest rate on line of credit | 4.99% | ||
Interest Rate | 4.99% | 4.99% | |
Amount repaid against the line of credit | $ 12,200 | ||
Percentage of eligible accounts receivable | 70.00% | ||
Amount of loan covenants | $ 12,500 | ||
Minimum tangible net worth | $ 19,000 | ||
Minimum traditional debt service coverage ratio | 1.25x | ||
Minimum current ratio | 1.50x | ||
Maximum debt to tangible net worth ratio | 2.0x | ||
Amount of minimum tangible net worth | $ 21,000 | ||
Traditional debt service coverage ratio | 2.0x | ||
United Bank, Inc. | Financing agreement "Operating Line of Credit (2021)" | 12.5 million component | |||
Line of Credit Facility [Line Items] | |||
Amount borrowed against the line of credit | $ 12,500 | ||
Amount available to borrowing | $ 7,700 | ||
United Bank, Inc. | Financing agreement "Operating Line of Credit (2021)" | 2.5 million component | |||
Line of Credit Facility [Line Items] | |||
Line of credit | $ 2,500 |
ACQUISITIONS - Tangible and int
ACQUISITIONS - Tangible and intangible assets acquired and liabilities assumed, the purchase price allocations (Details) - USD ($) | Dec. 31, 2021 | Sep. 30, 2021 |
Business Acquisition [Line Items] | ||
Goodwill | $ 1,814,317 | $ 1,814,317 |
Property, Plant and Equipment, Net, Total | 22,704,405 | 22,950,019 |
Intangible assets, net | 2,306,466 | $ 2,425,923 |
West Virginia Pipeline | ||
Business 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 | ||
Business Acquisition [Line Items] | ||
Intangible assets, net | 83,203 | |
West Virginia Pipeline | Customer relationships | ||
Business Acquisition [Line Items] | ||
Intangible assets, net | 2,209,724 | |
West Virginia Pipeline | Tradename | ||
Business Acquisition [Line Items] | ||
Intangible assets, net | 263,584 | |
West Virginia Pipeline | Equipment and vehicles | ||
Business Acquisition [Line Items] | ||
Property, Plant and Equipment, Net, Total | 1,565,000 | |
West Virginia Pipeline | Building | ||
Business Acquisition [Line Items] | ||
Property, Plant and Equipment, Net, Total | 220,243 | |
West Virginia Pipeline | Land | ||
Business Acquisition [Line Items] | ||
Property, Plant and Equipment, Net, Total | 64,757 | |
Revolt Energy | ||
Business Acquisition [Line Items] | ||
Debt assumed in acquisition | (85,000) | |
Purchase price | 150,000 | |
Revolt Energy | Non-competes | ||
Business Acquisition [Line Items] | ||
Intangible assets, net | 100,000 | |
Revolt Energy | Equipment and vehicles | ||
Business Acquisition [Line Items] | ||
Property, Plant and Equipment, Net, Total | $ 135,000 |
ACQUISITIONS - Additional Infor
ACQUISITIONS - Additional Information (Details) - USD ($) | Apr. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2021 |
West Virginia Pipeline | |||
Asset Acquisition [Line Items] | |||
Cash consideration | $ 3,500,000 | ||
Seller note as consideration for acquiring assets | $ 3,000,000 | ||
Term of debt | 5 years | ||
Interest Rate | 3.25% | ||
Acquisition Expenses | $ 150,000 | ||
Revenues | $ 2,300,000 | ||
Revolt Energy | |||
Asset Acquisition [Line Items] | |||
Cash consideration | $ 150,000 | ||
Revenue earned | $ 257,000 |
GOODWILL AND INTANGIBLE ASSET_2
GOODWILL AND INTANGIBLE ASSETS - Goodwill (Details) | 3 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 ($) | Dec. 31, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2021 |
Finite-Lived Intangible Assets [Line Items] | ||||
Original cost | $ 2,656,511 | $ 2,656,511 | ||
Accumulated Amortization | 306,989 | 306,989 | ||
Accumulated Impairment | 43,056 | 43,056 | ||
Amortization and Impairment | 350,045 | 119,457 | $ 230,588 | |
Net Book Value | $ 2,306,466 | 2,306,466 | ||
Amortization on identifiable intangible assets | 119,456 | $ 0 | ||
Impairment on intangible assets | 43,000 | |||
Non-competes | West Virginia Pipeline | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Remaining life of intangible assets | 12 months | |||
Original cost | $ 83,203 | 83,203 | ||
Accumulated Amortization | 41,603 | 41,603 | ||
Amortization and Impairment | 41,603 | 10,401 | 31,202 | |
Net Book Value | $ 41,600 | 41,600 | ||
Non-competes | Revolt Energy | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Remaining life of intangible assets | 28 months | |||
Original cost | $ 100,000 | 100,000 | ||
Accumulated Amortization | 18,056 | 18,056 | ||
Accumulated Impairment | 43,056 | 43,056 | ||
Amortization and Impairment | 61,112 | 47,223 | 13,889 | |
Net Book Value | $ 38,888 | 38,888 | ||
Customer relationships | West Virginia Pipeline | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Remaining life of intangible assets | 108 months | |||
Original cost | $ 2,209,724 | 2,209,724 | ||
Accumulated Amortization | 220,967 | 220,967 | ||
Amortization and Impairment | 220,967 | 55,242 | 165,725 | |
Net Book Value | $ 1,988,757 | 1,988,757 | ||
Tradename | West Virginia Pipeline | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Remaining life of intangible assets | 108 months | |||
Original cost | $ 263,584 | 263,584 | ||
Accumulated Amortization | 26,363 | 26,363 | ||
Amortization and Impairment | 26,363 | 6,591 | $ 19,772 | |
Net Book Value | $ 237,221 | $ 237,221 |
GOODWILL AND INTANGIBLE ASSET_4
GOODWILL AND INTANGIBLE ASSETS - GOODWILL AND INTANGIBLE ASSETS (Details) | Dec. 31, 2021USD ($) |
Amortization expense | |
January 1-December 31, 2022 | $ 305,600 |
January 1-December 31, 2023 | 264,000 |
January 1-December 31, 2024 | 252,884 |
January 1-December 31, 2025 | 247,332 |
January 1-December 31, 2026 | 247,332 |
After | 989,318 |
Total | $ 2,306,466 |
LEASES (Details)
LEASES (Details) | 3 Months Ended | |
Dec. 31, 2021USD ($)item | Dec. 31, 2020USD ($) | |
LEASES | ||
Operating lease payments | $ 1,500 | |
Number of financing leases entered | item | 2 | |
Term of finance leases | 22 months | |
Option to cancel the finance lease | false | |
Finance lease, interest rate | 0.00% | |
Finance lease, monthly installment payments | $ 6,645 | |
Finance lease, Value | 160,000 | |
Rental expense | $ 1,900,000 | $ 1,000,000 |
PAYCHECK PROTECTION PROGRAM L_2
PAYCHECK PROTECTION PROGRAM LOANS (Details) - USD ($) | Apr. 27, 2020 | Dec. 31, 2021 | Sep. 30, 2021 | Apr. 28, 2020 | Apr. 07, 2020 |
Debt Instrument [Line Items] | |||||
Debt principal amount | $ 8,700,000 | $ 10,000,000 | |||
PPP Funds | |||||
Debt Instrument [Line Items] | |||||
Debt principal amount | $ 13,139,100 | ||||
Debt amount, returned | $ 3,300,000 | ||||
Debt forgiveness granted | $ 9,800,000 | ||||
Available amount to fund operations | $ 9,800,000 | ||||
Number of years documentation to be retained | 6 years |
INCOME TAXES - Summary of provi
INCOME TAXES - Summary of provision for income taxes differs from amount computed by applying federal statutory rate (Details) | 3 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
INCOME TAXES | ||
Statutory rate | 29.70% | 9.70% |
INCOME TAXES - Income tax effec
INCOME TAXES - Income tax effects to deferred tax assets and liabilities (Details) - USD ($) | 3 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
INCOME TAXES | ||
Net income | $ 1,170,980 | $ (647,662) |
Dividends on preferred stock | 77,250 | |
Income (loss) available to common shareholders | $ 1,170,980 | $ (724,912) |
Weighted average shares outstanding-basic | 16,247,898 | 13,621,406 |
Weighted average shares outstanding-diluted | 16,247,898 | 13,621,406 |
Earnings (loss) per share available to common shareholders | $ 0.072 | $ (0.053) |
Earnings (loss) per share available to common shareholders-diluted | $ 0.072 | $ (0.053) |