Energy Services of America (ESOA) 10-Q13 Feb 232023 Q1 Quarterly reportFinancial data

Company Profile

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
Document and Entity Information - shares	Dec. 31, 2022	Feb. 13, 2023
Document and Entity Information
Document Type	10-Q
Document Quarterly Report	true
Entity File Number	000-00000
Document Transition Report	false
Document Period End Date	Dec. 31, 2022
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	Common Stock, Par Value $0.0001
Trading Symbol	ESOA
Security Exchange Name	NASDAQ
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		16,667,185
Amendment Flag	false
Current Fiscal Year End Date	--09-30
Document Fiscal Year Focus	2023
Document Fiscal Period Focus	Q1

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($)	Dec. 31, 2022	Sep. 30, 2022
Current assets
Cash and cash equivalents	$ 7,530,907	$ 7,427,474
Accounts receivable-trade	35,357,058	38,525,223
Allowance for doubtful accounts	(55,538)	(70,310)
Retainages receivable	4,989,451	4,443,679
Other receivables	13,699	10,866
Contract assets	14,397,681	16,109,593
Prepaid expenses and other	3,170,481	3,945,968
Total current assets	65,403,739	70,392,493
Property, plant and equipment, at cost	75,859,708	73,736,433
less accumulated depreciation	(42,647,308)	(41,074,646)
Total property and equipment, net	33,212,400	32,661,787
Right-of-use assets-operating lease	1,478,781	1,611,321
Intangible assets, net	3,740,910	3,873,690
Goodwill	4,087,554	4,087,554
Total assets	107,923,384	112,626,845
Current liabilities
Current maturities of long-term debt	4,575,060	4,060,016
Lines of credit and short-term borrowings	12,500,000	13,080,320
Current maturities of operating lease liabilities	506,606	588,653
Accounts payable	14,984,022	20,314,408
Accrued expenses and other current liabilities	8,814,256	11,266,008
Contract liabilities	8,611,883	6,027,578
Total current liabilities	49,991,827	55,336,983
Long-term debt, less current maturities	14,444,751	13,494,084
Long-term operating lease liabilities, less current maturities	965,012	1,015,624
Deferred tax liability	4,033,201	4,455,079
Total liabilities	69,434,791	74,301,770
Shareholders' equity
Common stock, $.0001 par value Authorized 50,000,000 shares, 17,885,615 issued and 16,667,185 outstanding at December 31, 2022 and September 30, 2022	1,789	1,789
Treasury stock, 1,218,430 shares at December 31, 2022 and September 30, 2022	(122)	(122)
Additional paid in capital	60,508,350	60,508,350
Retained deficit	(22,021,424)	(22,184,942)
Total shareholders' equity	38,488,593	38,325,075
Total liabilities and shareholders' equity	$ 107,923,384	$ 112,626,845

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parentheticals) - $ / shares	Dec. 31, 2022	Sep. 30, 2022
Consolidated Balance Sheets
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	17,885,615	16,667,185
Common stock, shares outstanding	17,885,615	16,667,185
Treasury stock, shares	1,218,430	1,218,430

Consolidated Statements of Inco

Consolidated Statements of Income - USD ($)	3 Months Ended
Consolidated Statements of Income - USD ($)	Dec. 31, 2022	Dec. 31, 2021
Consolidated Statements of Income
Revenue	$ 60,042,585	$ 42,659,125
Cost of revenues	54,056,323	37,350,752
Gross profit	5,986,262	5,308,373
Selling and administrative expenses	5,316,138	3,632,595
Income from operations	670,124	1,675,778
Other income (expense)
Interest income	72	576
Other nonoperating expense	(80,663)	(153,428)
Interest expense	(474,284)	(197,559)
(Loss) gain on sale of equipment	(31,343)	339,896
Other nonoperating income (expense), Total	(586,218)	(10,515)
Income before income taxes	83,906	1,665,263
Income tax (benefit) expense	(79,612)	494,283
Net income	$ 163,518	$ 1,170,980
Weighted average shares outstanding-basic	16,667,185	16,247,898
Weighted average shares-diluted	16,667,185	16,247,898
Earnings per share-basic	$ 0.01	$ 0.07
Earnings per share-diluted	$ 0.01	$ 0.07

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($)	3 Months Ended
Consolidated Statements of Cash Flows - USD ($)	Dec. 31, 2022	Dec. 31, 2021
Cash flows from operating activities:
Net income	$ 163,518	$ 1,170,980
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation expense	1,762,322	1,304,496
Loss (gain) on sale of equipment	31,343	(339,896)
Deferred income tax benefit	(421,878)	(367,010)
Amortization of intangible assets	132,780	119,456
Accreted interest on notes payable	10,599
Decrease (increase) in accounts receivable	3,153,393	(4,265,751)
Increase in retainage receivable	(545,772)	(551,585)
(Increase) decrease in other receivables	(2,833)	494,771
Decrease in contract assets	1,711,912	2,815,751
Decrease in prepaid expenses and other	775,487	750,846
(Decrease) increase in accounts payable	(5,330,386)	58,226
(Decrease) increase in accrued expenses and other current liabilities	(2,451,871)	837,579
Increase in contract liabilities	2,584,305	4,375,775
Net cash provided by operating activities	1,572,919	6,403,638
Cash flows from investing activities:
Investment in property and equipment	(2,348,901)	(942,703)
Proceeds from sales of property and equipment	92,815	463,862
Net cash used in investing activities	(2,256,086)	(478,841)
Cash flows from financing activities:
Preferred stock redemption		(1,262,750)
Borrowings on lines of credit and short term debt, net of (repayments)	(580,320)	(540,250)
Proceeds from long-term debt	3,100,000
Principal payments on long term debt	(1,733,080)	(1,215,390)
Net cash provided by (used in) financing activities	786,600	(3,018,390)
Increase in cash and cash equivalents	103,433	2,906,407
Cash and cash equivalents beginning of period	7,427,474	8,226,739
Cash and cash equivalents end of period	7,530,907	11,133,146
Supplemental schedule of noncash investing and financing activities:
Purchases of property & equipment under financing agreements	88,192	240,145
Par value of common stock issued from preferred stock conversion		263
Cash paid during the year for:
Interest	$ 472,960	$ 186,580

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 the beginning at Sep. 30, 2021	$ 1,484	$ 60,670,699	$ (26,035,015)	$ (122)	$ 34,637,046
Balance at the beginning (in shares) at Sep. 30, 2021	13,621,406
Increase (Decrease) in Stockholders' Equity
Net income			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 the end at Dec. 31, 2021	$ 1,747	59,460,174	(24,864,035)	(122)	34,597,764
Balance at the end (in shares) at Dec. 31, 2021	16,247,898
Balance at the beginning at Sep. 30, 2022	$ 1,789	60,508,350	(22,184,942)	(122)	38,325,075
Balance at the beginning (in shares) at Sep. 30, 2022	16,667,185
Increase (Decrease) in Stockholders' Equity
Net income			163,518		163,518
Balance at the end at Dec. 31, 2022	$ 1,789	$ 60,508,350	$ (22,021,424)	$ (122)	$ 38,488,593
Balance at the end (in shares) at Dec. 31, 2022	16,667,185

BUSINESS AND ORGANIZATION

BUSINESS AND ORGANIZATION	3 Months Ended
BUSINESS AND ORGANIZATION	Dec. 31, 2022
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 and central regions of the United States and provides services to customers in the natural gas, petroleum, water distribution, automotive, chemical, and power industries. For the gas industry, the Company is primarily engaged in the construction, replacement and repair of natural gas pipelines and storage facilities for utility companies and private natural gas companies. Energy Services is involved in the construction of both interstate and intrastate pipelines, with an emphasis on the latter. For the oil industry, the Company provides a variety of services relating to pipeline, storage facilities and plant work. For the power, chemical, and automotive industries, the Company provides a full range of electrical and mechanical installations and repairs including substation and switchyard services, site preparation, equipment setting, pipe fabrication and installation, packaged buildings, transformers, and other ancillary work with regards thereto. Energy Services’ other services include liquid pipeline construction, pump station construction, production facility construction, water and sewer pipeline installations, various maintenance and repair services and other services related to pipeline construction. The Company has also added the ability to install residential, commercial, and industrial solar systems and perform civil and general contracting services. 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. Revolt Energy, LLC and Nitro Electric Company, LLC are newly formed, wholly owned subsidiaries of Nitro. 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” or “WVP”), a wholly owned subsidiary of Energy Services, operates as a gas and water distribution contractor primarily in southern West Virginia. The employees of West Virginia Pipeline are non-union and are managed independently from the Company’s union subsidiaries. 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 SQP are non-union and are managed independently from the Company’s union subsidiaries. Tri-State Paving & Sealcoating, Inc. The employees of TSP are non-union and are managed independently from the Company’s union subsidiaries. Ryan Construction Services Inc. (“Ryan Construction” or “RCS”), a wholly owned subsidiary of Energy Services, formed in August 2022 in connection with the acquisition of substantially all of the assets of Ryan Environmental, LLC and Ryan Environmental Transport, LLC, provides directional drilling services for broadband service providers along with offering natural gas distribution services, cathodic protection and corrosion prevention services, and civil construction services. Ryan Construction operates primarily in West Virginia and Pennsylvania. The employees of RCS 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, 2022, and 2021 included in the Company’s Annual Report on Form 10-K filed with the SEC on December 22, 2022. 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, 2022, and 2021 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, Ryan Construction, Tri-State Paving and C.J. Hughes and its subsidiaries. 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, Ryan Construction, Tri-State Paving 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
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	Dec. 31, 2022
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
REVENUE RECOGNITION	Dec. 31, 2022
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 ● Identify the contract ● Identify performance obligations ● Determine the transaction price ● Allocate the transaction price ● 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
DISAGGREGATION OF REVENUE	Dec. 31, 2022
DISAGGREGATION OF REVENUE
DISAGGREGATION OF REVENUE	4. DISAGGREGATION OF REVENUE The Company disaggregates revenue based on the following lines of service: (1) Gas & Water Distribution, (2) Gas & Petroleum Transmission, and (3) Electrical, Mechanical, & General services and construction. 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, 2022 and 2021: Three Months Ended December 31, 2022 Electrical, Gas & Water Gas & Petroleum Mechanical, Total revenue Distribution Transmission and General from contracts Lump sum contracts $ — $ — $ 17,186,157 $ 17,186,157 Unit price contracts 12,389,558 16,840,150 1,537,438 30,767,146 Cost plus and T&M contracts — — 12,089,282 12,089,282 Total revenue from contracts $ 12,389,558 $ 16,840,150 $ 30,812,877 $ 60,042,585 Earned over time $ 4,878,647 $ 16,840,150 $ 29,890,148 $ 51,608,945 Earned at point in time 7,510,911 — 922,729 8,433,640 Total revenue from contracts $ 12,389,558 $ 16,840,150 $ 30,812,877 $ 60,042,585 Three Months Ended December 31, 2021 Electrical, Gas &Water Gas & Petroleum Mechanical, Total revenue Distribution Transmission and 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

CONTRACT BALANCES

CONTRACT BALANCES	3 Months Ended
CONTRACT BALANCES	Dec. 31, 2022
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 three months ended December 31, 2022, we recognized revenue of $4.5 million that was included in the contract liability balance at September 30, 2022. Accounts receivable-trade, net of allowance for doubtful accounts, contract assets and contract liabilities consisted of the following: December 31, 2022 September 30, 2022 Change Accounts receivable-trade, net of allowance for doubtful accounts $ 35,301,520 $ 38,454,913 $ (3,153,393) Contract assets Cost and estimated earnings in excess of billings $ 14,397,681 $ 16,109,593 $ (1,711,912) Contract liabilities Billings in excess of cost and estimated earnings $ 8,611,883 $ 6,027,578 $ 2,584,305

PERFORMANCE OBLIGATIONS

PERFORMANCE OBLIGATIONS	3 Months Ended
PERFORMANCE OBLIGATIONS	Dec. 31, 2022
PERFORMANCE OBLIGATIONS
PERFORMANCE OBLIGATIONS	6. PERFORMANCE OBLIGATIONS For the three months ended December 31, 2022, 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, 2022. Changes in contract transaction price can result from items such as executed or estimated change orders, and unresolved contract modifications and claims. At December 31, 2022, the Company had $155.9 million in remaining unsatisfied performance obligations, in which revenue is expected to be recognized over the next twelve months.

UNCOMPLETED CONTRACTS

UNCOMPLETED CONTRACTS	3 Months Ended
UNCOMPLETED CONTRACTS	Dec. 31, 2022
UNCOMPLETED CONTRACTS
UNCOMPLETED CONTRACTS	7. UNCOMPLETED CONTRACTS Costs, estimated earnings, and billings on uncompleted contracts as of December 31, 2022, and September 30, 2022, are summarized as follows: December 31, 2022 September 30, 2022 Costs incurred on contracts in progress $ 110,656,030 $ 192,957,145 Estimated earnings, net of estimated losses 16,806,651 28,150,060 127,462,681 221,107,205 Less billings to date 121,676,883 211,025,190 $ 5,785,798 $ 10,082,015 Costs and estimated earnings in excess of billed on uncompleted contracts $ 14,397,681 $ 16,109,593 Less billings in excess of costs and estimated earnings on uncompleted contracts 8,611,883 6,027,578 $ 5,785,798 $ 10,082,015 Backlog at December 31, 2022, and September 30, 2022, was $206.9 million and $142.3 million, respectively.

FAIR VALUE MEASUREMENTS

FAIR VALUE MEASUREMENTS	3 Months Ended
FAIR VALUE MEASUREMENTS	Dec. 31, 2022
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS	8. FAIR VALUE MEASUREMENTS The fair value measurement guidance 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 measurement guidance of the FASB ASC 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 was estimated using a discounted cash flow analysis and a yield rate that was estimated based on the borrowing rates currently available to the Company for bank loans with similar terms and maturities. The fair value of the aggregate principal amount of the Company’s fixed-rate debt of $16.0 million at December 31, 2022 was $15.0 million. The fair value of the aggregate principal amount of the Company’s fixed-rate debt of $15.0 million at September 30, 2022 was $14.5 million. All other current assets and liabilities are carried at net realizable value which approximates fair value because of their short duration to maturity.

EARNINGS PER SHARE

EARNINGS PER SHARE	3 Months Ended
EARNINGS PER SHARE	Dec. 31, 2022
EARNINGS PER SHARE
EARNINGS PER SHARE	9. EARNINGS PER SHARE The amounts used to compute the earnings per share for the three months ended December 31, 2022 and 2021 are summarized below. Three Months Ended Three Months Ended December 31, December 31, 2022 2021 Net income $ 163,518 $ 1,170,980 Weighted average shares outstanding-basic 16,667,185 16,247,898 Weighted average shares-diluted 16,667,185 16,247,898 Earnings per share-basic $ 0.01 $ 0.07 Earnings per share-diluted $ 0.01 $ 0.07

INCOME TAXES

INCOME TAXES	3 Months Ended
INCOME TAXES	Dec. 31, 2022
INCOME TAXES
INCOME TAXES	10. INCOME TAXES The components of income taxes are as follows: Three Months Ended December 31, 2022 December 31, 2021 Federal Current $ 266,966 $ 671,808 Deferred (329,064) (286,268) Total (62,098) 385,540 State Current 75,299 189,485 Deferred (92,813) (80,742) Total (17,514) 108,743 Total income tax (benefit) expense $ (79,612) $ 494,283 The effective income tax rate for the three months ended December 31, 2022, was (94.9)%, as compared to 29.7% for the same period in 2021. 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. Major items that can affect the effective tax rate include amortization of goodwill and non-deductible amounts for per diem expenses. The income tax effects of temporary differences giving rise to the deferred tax assets and liabilities are as follows: December 31, September 30, 2022 2022 Deferred tax liabilities Property and equipment $ 7,155,494 $ 7,686,064 Other 530,806 7,632 Total deferred tax liabilities $ 7,686,300 $ 7,693,696 Deferred income tax assets Other $ 913,479 $ 404,093 Net operating loss carryforward 2,739,620 2,834,524 Total deferred tax assets $ 3,653,099 $ 3,238,617 Total net deferred tax liabilities $ 4,033,201 $ 4,455,079 Deferred income taxes arise from temporary differences between the tax basis of assets and liabilities and their reported amounts in the consolidated financial statements, which will result in taxable or deductible amounts in the future. A valuation allowance is established when necessary to reduce deferred tax assets to the amount expected to be realized. At December 31, 2022, the Company expects all net operating loss carryforwards to be realized in the near future. 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. 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.

SHORT-TERM AND LONG-TERM DEBT

SHORT-TERM AND LONG-TERM DEBT	3 Months Ended
SHORT-TERM AND LONG-TERM DEBT	Dec. 31, 2022
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 July 13, 2022, the Company received a one-year extension on its $15.0 million operating line of credit effective June 28, 2022. The interest rate on the line of credit is the “ Wall Street Journal The line of credit has a $12.5 million component and a $2.5 million component with additional borrowing requirements. Based on the borrowing base calculation, the Company borrowed all $12.5 million available on the line of credit as of December 31, 2022 and September 30, 2022. The Company did not meet the requirements to borrow any from the $2.5 million component. On January 19, 2023, the Company received an amendment to the agreement which increased the line of credit to $30.0 million. The maturity date remains June 28, 2023, with a variable interest rate equal to the “Wall Street Journal” Prime Rate with a floor of 4.5%. The modified financial covenants for the quarter ended December 31, 2022, and all subsequent quarters, are below: ● Minimum tangible net worth of $28.0 million, ● Minimum traditional debt service coverage of 1.50x on a rolling twelve- month basis, ● Minimum current ratio of 1.20x , ● Maximum debt to tangible net worth ratio (“TNW”) of 2.75x , ● Each ratio and covenant shall be determined, tested, and measured as of each calendar quarter beginning December 31, 2022, ● Borrower shall maintain a ratio of Maximum Senior Funded Debt ("SFD") to Earnings before Interest, Taxes, Depreciation and Amortization ("EBDITA") equal to or less than 3.5 :1. SFD shall mean any funded debt or lease of Borrower, other than subordinated debt. The covenant shall be tested quarterly, as of the end of each fiscal quarter, with EBITDA based on the preceding four quarters. The Company was in compliance with all covenants at December 31, 2022, and the Company projects to meet all covenant requirements for the next twelve months. 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 eleven monthly payments. At December 31, 2022 and September 30, 2022, respectively, the remaining balance of the insurance premiums was $0 and $580,000. A summary of short-term and long-term debt as of December 31, 2022, and September 30, 2022, is as follows: December 31, September 30, 2022 2022 Line of credit payable to bank, monthly interest at 7.75% , final payment due by June 28, 2023, guaranteed by certain directors of the Company. $ 12,500,000 $ 12,500,000 Term note payable to United Bank, WV Pipeline acquisition, due in monthly installments of $64,853 fixed interest at 4.25% , final payment due by March 25, 2026, secured by receivables and equipment, guaranteed by certain directors of the Company. 2,361,701 2,529,421 Notes payable to finance companies, due in monthly installments totaling $32,000 at December 31, 2022 and $60,000 at September 30, 2022, including interest ranging from 0.00% to 6.03% , final payments due January 2023 through August 2026, secured by equipment. 776,551 889,165 Note payable to finance company for insurance premiums financed, due in monthly installments totaling $282,000 in FY 2022 and $272,000 in FY 2021, including interest rate at 3.50% , final payment due November 2022. — 580,320 Notes payable to bank, due in monthly installments totaling $7,848 , including interest at 4.82% , final payment due November 2034 secured by building and property. 854,087 867,383 Notes payable to bank, due in monthly installments totaling $12,464 , including interest at 8.75% , final payment due November 2025 secured by building and property, guaranteed by certain directors of the Company. 374,201 412,917 Notes payable to bank, due in monthly installments totaling $59,932 , including fixed interest at 6.0% , final payment due October 2027 secured by receivables and equipment, guaranteed by certain directors of the Company. 3,011,436 — Notes payable to David Bolton and Daniel Bolton, due in annual installments totaling $500,000 , including fixed interest at 3.25% , final payment due December 31, 2026, unsecured. 1,637,500 2,380,000 Notes payable to bank, due in monthly installments totaling $68,073 , including interest at 8.75% , beginning February 2022 with final payment due September 2026, secured by equipment, guaranteed by certain directors of the Company. 2,391,154 2,549,281 Term note payable to United Bank, Tri-State Paving acquisition, due in monthly installments of $140,000 , fixed interest at 4.50% , final payment due by June 1, 2027, secured by receivables and equipment, guaranteed by certain directors of the Company. 6,666,246 6,982,097 Notes payable to Corns Enterprises, due in annual installments totaling $250,000 , including fixed interest at 3.50% , final payment due April 29, 2026, unsecured. 946,935 943,836 Total debt $ 31,519,811 $ 30,634,420 Less current maturities 17,075,060 17,140,336 Total long-term debt $ 14,444,751 $ 13,494,084

GOODWILL AND INTANGIBLE ASSETS

GOODWILL AND INTANGIBLE ASSETS	3 Months Ended
GOODWILL AND INTANGIBLE ASSETS	Dec. 31, 2022
GOODWILL AND INTANGIBLE ASSETS
GOODWILL AND INTANGIBLE ASSETS	12. GOODWILL AND INTANGIBLE ASSETS The Company follows the guidance of ASC Topic 350, Intangibles-Goodwill and Other A table of the Company’s goodwill is below: December 31, September 30, 2022 2022 Beginning balance $ 4,087,554 $ 1,814,317 Acquired — 2,273,237 Ending balance $ 4,087,554 $ 4,087,554 A table of the Company’s intangible assets subject to amortization at December 31, 2022, and September 30, 2022 is below: Accumulated Accumulated Amortization and Remaining Life at Amortization and Amortization and Impairment Three Net Book December 31, Impairment at Impairment at Months Ended Value at Intangible assets: 2022 Original Cost December 31, 2022 September 30, 2022 December 31, 2022 December 31, 2022 West Virginia Pipeline: Customer Relationships 96 months $ 2,209,724 $ 441,935 $ 386,693 $ 55,242 $ 1,767,789 Tradename 96 months 263,584 52,731 46,136 6,595 210,853 Non-competes 0 months 83,203 83,203 72,806 10,397 — Revolt Energy: Employment agreement/non-compete 16 months 100,000 81,946 77,779 4,167 18,054 Tri-State Paving: Customer Relationships 112 months 1,649,159 $ 108,061 66,781 $ 41,280 1,541,098 Tradename 112 months 203,213 13,450 8,368 5,082 189,763 Non-competes 4 months 39,960 26,607 16,590 10,017 13,353 Total intangible assets $ 4,548,843 $ 807,933 $ 675,153 $ 132,780 $ 3,740,910 The amortization on identifiable intangible assets for the three months ended December 31, 2022 and 2021 was $133,000 $119,000 Amortization expense associated with the identifiable intangible assets is expected to be as follows: Amortization Expense January 2023 to December 2023 $ 462,590 January 2024 to December 2024 433,955 January 2025 to December 2025 432,569 January 2026 to December 2026 432,569 January 2027 to December 2027 432,569 After 1,546,657 Total $ 3,740,910

LEASE OBLIGATIONS

LEASE OBLIGATIONS	3 Months Ended
LEASE OBLIGATIONS	Dec. 31, 2022
LEASE OBLIGATIONS
LEASE OBLIGATIONS	13. LEASE OBLIGATIONS The Company leases office space for SQP 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 Company has two lease agreements for construction equipment with a combined amount of $160,000. The leases have a term of twenty-two months with a stated interest rate of 0%, combined monthly installment payments of $6,645 and are cancellable at any time without penalty. The Company has the right to purchase the equipment at the expiration of the leases by applying the two-month deposit paid. The related assets and finance lease obligations associated with these lease agreements are included in the consolidated balance sheets within property, plant and equipment and long-term debt. The Company has two right-of-use operating leases acquired on April 29, 2022, as part of the Tri-State Paving, LLC transaction. The first operating lease, for the Hurricane, WV facility, had a net present value of $236,000 at April 29, 2022, and a carrying value of $186,000 at December 31, 2022. The second operating lease, for the Chattanooga, Tennessee facility, had a net present value of $144,000 at April 29, 2022, and a carrying value of $103,000 at December 31, 2022. The 4.5% interest rate on the operating leases is based on the Company’s incremental borrowing rate at inception. The Company has a right-of-use operating lease with Enterprise Fleet Management, Inc. acquired on August 11, 2022, as part of the Ryan Environmental acquisition. This lease agreement was initially for 31 vehicles to be used for Ryan Construction; however, the Company plans to add vehicles as it finds necessary. This lease had a net present value of $1.2 million at inception, and carrying value of $1.1 million at December 31, 2022. The 4.5% interest rate on the operating lease is based on the Company’s incremental borrowing rate at inception. The Company has a right-of-use operating lease with RICA Developers, LLC acquired on August 12, 2022, as part of the Ryan Environmental acquisition. This lease, for the Bridgeport, WV facility, had a net present value of $140,000 at inception and a carrying value of $83,000 at December 31, 2022. The 4.5% interest rate on the operating lease is based on the Company’s incremental borrowing rate at inception. Schedules related to the Company’s operating leases at December 31, 2022 can be found below: Remaining liability Years left December 31, 2022 September 30, 2022 Lease end Fiscal year end Operating lease 1 2.3 $ 186,427 $ 205,267 4/30/2025 2025 Operating lease 2 1.4 103,472 119,032 5/31/2024 2024 Operating lease 3 3.7 1,098,727 1,166,498 8/10/2026 2027 Operating lease 4 0.7 82,992 113,480 8/11/2023 2023 $ 1,471,618 $ 1,604,277 Weighted average remaining term 3.2 years Operating Lease Maturity Schedule January 2023-December 2023 $ 559,911 January 2024-December 2024 448,309 January 2025-December 2025 352,397 January 2026-December 2026 216,265 1,576,882 Less amounts representing interest (105,264) Present value of operating lease liabilities $ 1,471,618 Three months ended December 31, 2022 Operating Lease Expense Amortization Operating lease 1 $ 18,841 Operating lease 2 15,559 Operating lease 3 68,528 Operating lease 4 29,612 Total amortization 132,540 Interest Operating lease 1 2,160 Operating lease 2 1,219 Operating lease 3 12,570 Operating lease 4 1,162 Total interest 17,111 Total amortization and interest $ 149,651 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 reporting period 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 statements of income, was $2.7 million and $1.9 million, respectively, for the three months ended December 31, 2022 and 2021.

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS	3 Months Ended
SUBSEQUENT EVENTS	Dec. 31, 2022
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS	15. SUBSEQUENT EVENTS On January 18, 2023, the Company’s Board of Directors approved a special cash dividend of $0.05 per common share payable on February 15, 2023 to shareholders of record as of January 31, 2023. On January 19, 2023, the Company received an amendment to increase its line of credit from $15.0 million to $30.0 million. The maturity date remains June 28, 2023, with a variable interest rate equal to the “Wall Street Journal” Management has evaluated all subsequent events for accounting and disclosure. 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
BUSINESS AND ORGANIZATION (Policies)	Dec. 31, 2022
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, 2022, and 2021 included in the Company’s Annual Report on Form 10-K filed with the SEC on December 22, 2022. 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, 2022, and 2021 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, Ryan Construction, Tri-State Paving and C.J. Hughes and its subsidiaries. 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, Ryan Construction, Tri-State Paving 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
DISAGGREGATION OF REVENUE (Tables)	Dec. 31, 2022
DISAGGREGATION OF REVENUE
Schedule of disaggregation of revenue	Three Months Ended December 31, 2022 Electrical, Gas & Water Gas & Petroleum Mechanical, Total revenue Distribution Transmission and General from contracts Lump sum contracts $ — $ — $ 17,186,157 $ 17,186,157 Unit price contracts 12,389,558 16,840,150 1,537,438 30,767,146 Cost plus and T&M contracts — — 12,089,282 12,089,282 Total revenue from contracts $ 12,389,558 $ 16,840,150 $ 30,812,877 $ 60,042,585 Earned over time $ 4,878,647 $ 16,840,150 $ 29,890,148 $ 51,608,945 Earned at point in time 7,510,911 — 922,729 8,433,640 Total revenue from contracts $ 12,389,558 $ 16,840,150 $ 30,812,877 $ 60,042,585 Three Months Ended December 31, 2021 Electrical, Gas &Water Gas & Petroleum Mechanical, Total revenue Distribution Transmission and 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

CONTRACT BALANCES (Tables)

CONTRACT BALANCES (Tables)	3 Months Ended
CONTRACT BALANCES (Tables)	Dec. 31, 2022
CONTRACT BALANCES
Schedule of accounts receivable-trade, net of allowance for doubtful accounts, contract assets and contract liabilities	December 31, 2022 September 30, 2022 Change Accounts receivable-trade, net of allowance for doubtful accounts $ 35,301,520 $ 38,454,913 $ (3,153,393) Contract assets Cost and estimated earnings in excess of billings $ 14,397,681 $ 16,109,593 $ (1,711,912) Contract liabilities Billings in excess of cost and estimated earnings $ 8,611,883 $ 6,027,578 $ 2,584,305

UNCOMPLETED CONTRACTS (Tables)

UNCOMPLETED CONTRACTS (Tables)	3 Months Ended
UNCOMPLETED CONTRACTS (Tables)	Dec. 31, 2022
UNCOMPLETED CONTRACTS
Schedule of costs, estimated earnings and billings on uncompleted contracts	December 31, 2022 September 30, 2022 Costs incurred on contracts in progress $ 110,656,030 $ 192,957,145 Estimated earnings, net of estimated losses 16,806,651 28,150,060 127,462,681 221,107,205 Less billings to date 121,676,883 211,025,190 $ 5,785,798 $ 10,082,015 Costs and estimated earnings in excess of billed on uncompleted contracts $ 14,397,681 $ 16,109,593 Less billings in excess of costs and estimated earnings on uncompleted contracts 8,611,883 6,027,578 $ 5,785,798 $ 10,082,015

EARNINGS PER SHARE (Tables)

EARNINGS PER SHARE (Tables)	3 Months Ended
EARNINGS PER SHARE (Tables)	Dec. 31, 2022
EARNINGS PER SHARE
Schedule to compute the earnings per share	Three Months Ended Three Months Ended December 31, December 31, 2022 2021 Net income $ 163,518 $ 1,170,980 Weighted average shares outstanding-basic 16,667,185 16,247,898 Weighted average shares-diluted 16,667,185 16,247,898 Earnings per share-basic $ 0.01 $ 0.07 Earnings per share-diluted $ 0.01 $ 0.07

INCOME TAXES (Tables)

INCOME TAXES (Tables)	3 Months Ended
INCOME TAXES (Tables)	Dec. 31, 2022
INCOME TAXES
Schedule of components of income taxes	Three Months Ended December 31, 2022 December 31, 2021 Federal Current $ 266,966 $ 671,808 Deferred (329,064) (286,268) Total (62,098) 385,540 State Current 75,299 189,485 Deferred (92,813) (80,742) Total (17,514) 108,743 Total income tax (benefit) expense $ (79,612) $ 494,283
Schedule of income tax effects to deferred tax assets and liabilities	December 31, September 30, 2022 2022 Deferred tax liabilities Property and equipment $ 7,155,494 $ 7,686,064 Other 530,806 7,632 Total deferred tax liabilities $ 7,686,300 $ 7,693,696 Deferred income tax assets Other $ 913,479 $ 404,093 Net operating loss carryforward 2,739,620 2,834,524 Total deferred tax assets $ 3,653,099 $ 3,238,617 Total net deferred tax liabilities $ 4,033,201 $ 4,455,079

SHORT-TERM AND LONG-TERM DEBT (

SHORT-TERM AND LONG-TERM DEBT (Tables)	3 Months Ended
SHORT-TERM AND LONG-TERM DEBT (Tables)	Dec. 31, 2022
SHORT-TERM AND LONG-TERM DEBT
Schedule of short-term and long-term debt	December 31, September 30, 2022 2022 Line of credit payable to bank, monthly interest at 7.75% , final payment due by June 28, 2023, guaranteed by certain directors of the Company. $ 12,500,000 $ 12,500,000 Term note payable to United Bank, WV Pipeline acquisition, due in monthly installments of $64,853 fixed interest at 4.25% , final payment due by March 25, 2026, secured by receivables and equipment, guaranteed by certain directors of the Company. 2,361,701 2,529,421 Notes payable to finance companies, due in monthly installments totaling $32,000 at December 31, 2022 and $60,000 at September 30, 2022, including interest ranging from 0.00% to 6.03% , final payments due January 2023 through August 2026, secured by equipment. 776,551 889,165 Note payable to finance company for insurance premiums financed, due in monthly installments totaling $282,000 in FY 2022 and $272,000 in FY 2021, including interest rate at 3.50% , final payment due November 2022. — 580,320 Notes payable to bank, due in monthly installments totaling $7,848 , including interest at 4.82% , final payment due November 2034 secured by building and property. 854,087 867,383 Notes payable to bank, due in monthly installments totaling $12,464 , including interest at 8.75% , final payment due November 2025 secured by building and property, guaranteed by certain directors of the Company. 374,201 412,917 Notes payable to bank, due in monthly installments totaling $59,932 , including fixed interest at 6.0% , final payment due October 2027 secured by receivables and equipment, guaranteed by certain directors of the Company. 3,011,436 — Notes payable to David Bolton and Daniel Bolton, due in annual installments totaling $500,000 , including fixed interest at 3.25% , final payment due December 31, 2026, unsecured. 1,637,500 2,380,000 Notes payable to bank, due in monthly installments totaling $68,073 , including interest at 8.75% , beginning February 2022 with final payment due September 2026, secured by equipment, guaranteed by certain directors of the Company. 2,391,154 2,549,281 Term note payable to United Bank, Tri-State Paving acquisition, due in monthly installments of $140,000 , fixed interest at 4.50% , final payment due by June 1, 2027, secured by receivables and equipment, guaranteed by certain directors of the Company. 6,666,246 6,982,097 Notes payable to Corns Enterprises, due in annual installments totaling $250,000 , including fixed interest at 3.50% , final payment due April 29, 2026, unsecured. 946,935 943,836 Total debt $ 31,519,811 $ 30,634,420 Less current maturities 17,075,060 17,140,336 Total long-term debt $ 14,444,751 $ 13,494,084

GOODWILL AND INTANGIBLE ASSETS

GOODWILL AND INTANGIBLE ASSETS (Tables)	3 Months Ended
GOODWILL AND INTANGIBLE ASSETS (Tables)	Dec. 31, 2022
GOODWILL AND INTANGIBLE ASSETS
Summary of changes in goodwill	December 31, September 30, 2022 2022 Beginning balance $ 4,087,554 $ 1,814,317 Acquired — 2,273,237 Ending balance $ 4,087,554 $ 4,087,554
Schedule of intangible assets subject to amortization	A table of the Company’s intangible assets subject to amortization at December 31, 2022, and September 30, 2022 is below: Accumulated Accumulated Amortization and Remaining Life at Amortization and Amortization and Impairment Three Net Book December 31, Impairment at Impairment at Months Ended Value at Intangible assets: 2022 Original Cost December 31, 2022 September 30, 2022 December 31, 2022 December 31, 2022 West Virginia Pipeline: Customer Relationships 96 months $ 2,209,724 $ 441,935 $ 386,693 $ 55,242 $ 1,767,789 Tradename 96 months 263,584 52,731 46,136 6,595 210,853 Non-competes 0 months 83,203 83,203 72,806 10,397 — Revolt Energy: Employment agreement/non-compete 16 months 100,000 81,946 77,779 4,167 18,054 Tri-State Paving: Customer Relationships 112 months 1,649,159 $ 108,061 66,781 $ 41,280 1,541,098 Tradename 112 months 203,213 13,450 8,368 5,082 189,763 Non-competes 4 months 39,960 26,607 16,590 10,017 13,353 Total intangible assets $ 4,548,843 $ 807,933 $ 675,153 $ 132,780 $ 3,740,910
Schedule of amortization on identifiable intangible assets	Amortization Expense January 2023 to December 2023 $ 462,590 January 2024 to December 2024 433,955 January 2025 to December 2025 432,569 January 2026 to December 2026 432,569 January 2027 to December 2027 432,569 After 1,546,657 Total $ 3,740,910

LEASE OBLIGATIONS (Tables)

LEASE OBLIGATIONS (Tables)	3 Months Ended
LEASE OBLIGATIONS (Tables)	Dec. 31, 2022
LEASE OBLIGATIONS
Schedule of information about operating leases	Schedules related to the Company’s operating leases at December 31, 2022 can be found below: Remaining liability Years left December 31, 2022 September 30, 2022 Lease end Fiscal year end Operating lease 1 2.3 $ 186,427 $ 205,267 4/30/2025 2025 Operating lease 2 1.4 103,472 119,032 5/31/2024 2024 Operating lease 3 3.7 1,098,727 1,166,498 8/10/2026 2027 Operating lease 4 0.7 82,992 113,480 8/11/2023 2023 $ 1,471,618 $ 1,604,277 Weighted average remaining term 3.2 years Three months ended December 31, 2022 Operating Lease Expense Amortization Operating lease 1 $ 18,841 Operating lease 2 15,559 Operating lease 3 68,528 Operating lease 4 29,612 Total amortization 132,540 Interest Operating lease 1 2,160 Operating lease 2 1,219 Operating lease 3 12,570 Operating lease 4 1,162 Total interest 17,111 Total amortization and interest $ 149,651
Schedule of operating lease maturity schedule	Operating Lease Maturity Schedule January 2023-December 2023 $ 559,911 January 2024-December 2024 448,309 January 2025-December 2025 352,397 January 2026-December 2026 216,265 1,576,882 Less amounts representing interest (105,264) Present value of operating lease liabilities $ 1,471,618

DISAGGREGATION OF REVENUE (Deta

DISAGGREGATION OF REVENUE (Details) - USD ($)	3 Months Ended
DISAGGREGATION OF REVENUE (Details) - USD ($)	Dec. 31, 2022	Dec. 31, 2021
DISAGGREGATION OF REVENUE
Total revenue from contracts	$ 60,042,585	$ 42,659,125
Earned over time
DISAGGREGATION OF REVENUE
Total revenue from contracts	51,608,945	37,978,425
Earned at point in time
DISAGGREGATION OF REVENUE
Total revenue from contracts	8,433,640	4,680,700
Lump sum contracts
DISAGGREGATION OF REVENUE
Total revenue from contracts	17,186,157	10,939,201
Unit price contracts
DISAGGREGATION OF REVENUE
Total revenue from contracts	30,767,146	23,200,551
Cost plus and T&M contracts
DISAGGREGATION OF REVENUE
Total revenue from contracts	12,089,282	8,519,373
Gas & Water Distribution
DISAGGREGATION OF REVENUE
Total revenue from contracts	12,389,558	11,962,034
Gas & Water Distribution \| Earned over time
DISAGGREGATION OF REVENUE
Total revenue from contracts	4,878,647	7,919,922
Gas & Water Distribution \| Earned at point in time
DISAGGREGATION OF REVENUE
Total revenue from contracts	7,510,911	4,042,112
Gas & Water Distribution \| Unit price contracts
DISAGGREGATION OF REVENUE
Total revenue from contracts	12,389,558	11,962,034
Gas & Petroleum Transmission
DISAGGREGATION OF REVENUE
Total revenue from contracts	16,840,150	11,238,517
Gas & Petroleum Transmission \| Earned over time
DISAGGREGATION OF REVENUE
Total revenue from contracts	16,840,150	11,238,517
Gas & Petroleum Transmission \| Unit price contracts
DISAGGREGATION OF REVENUE
Total revenue from contracts	16,840,150	11,238,517
Electrical, Mechanical, and General
DISAGGREGATION OF REVENUE
Total revenue from contracts	30,812,877	19,458,574
Electrical, Mechanical, and General \| Earned over time
DISAGGREGATION OF REVENUE
Total revenue from contracts	29,890,148	18,819,986
Electrical, Mechanical, and General \| Earned at point in time
DISAGGREGATION OF REVENUE
Total revenue from contracts	922,729	638,588
Electrical, Mechanical, and General \| Lump sum contracts
DISAGGREGATION OF REVENUE
Total revenue from contracts	17,186,157	10,939,201
Electrical, Mechanical, and General \| Unit price contracts
DISAGGREGATION OF REVENUE
Total revenue from contracts	1,537,438
Electrical, Mechanical, and General \| Cost plus and T&M contracts
DISAGGREGATION OF REVENUE
Total revenue from contracts	$ 12,089,282	$ 8,519,373

CONTRACT BALANCES (Details)

CONTRACT BALANCES (Details) - USD ($)	3 Months Ended
CONTRACT BALANCES (Details) - USD ($)	Dec. 31, 2022	Dec. 31, 2021	Sep. 30, 2022
CONTRACT BALANCES
Accounts receivable-trade, net of allowance for doubtful accounts	$ 35,301,520		$ 38,454,913
Change in accounts receivable-trade, net of allowance for doubtful accounts	(3,153,393)	$ 4,265,751
Contract assets
Cost and estimated earnings in excess of billings	14,397,681		16,109,593
Change in cost and estimated earnings in excess of billings	(1,711,912)	(2,815,751)
Contract liabilities
Billings in excess of cost and estimated earnings	8,611,883		$ 6,027,578
Change in billings in excess of cost and estimated earnings	$ 2,584,305	$ 4,375,775

CONTRACT BALANCES - Additional

CONTRACT BALANCES - Additional Information (Details) $ in Millions	3 Months Ended
	Dec. 31, 2022 USD ($)
CONTRACT BALANCES
Recognized revenue included in contract liability	$ 4.5
Minimum
CONTRACT BALANCES
Payment term of contracts after invoices have been issued	30 days
Maximum
CONTRACT BALANCES
Payment term of contracts after invoices have been issued	45 days

PERFORMANCE OBLIGATIONS (Detail

PERFORMANCE OBLIGATIONS (Details)	3 Months Ended
PERFORMANCE OBLIGATIONS (Details)	Dec. 31, 2022 USD ($)
PERFORMANCE OBLIGATIONS
Recognized revenue	$ 0
Amount of remaining unsatisfied performance obligations	$ 155,900,000

UNCOMPLETED CONTRACTS - Summary

UNCOMPLETED CONTRACTS - Summary of costs, estimated earnings, and billings on uncompleted contracts (Details) - USD ($)	Dec. 31, 2022	Sep. 30, 2022
UNCOMPLETED CONTRACTS
Costs incurred on contracts in progress	$ 110,656,030	$ 192,957,145
Estimated earnings, net of estimated losses	16,806,651	28,150,060
Costs of uncompleted contracts including net estimated earnings	127,462,681	221,107,205
Less billings to date	121,676,883	211,025,190
Unbilled contracts	5,785,798	10,082,015
Costs and estimated earnings in excess of billed on uncompleted contracts	14,397,681	16,109,593
Billings in excess of cost and estimated earnings	8,611,883	6,027,578
Unbilled contracts receivable	$ 5,785,798	$ 10,082,015

UNCOMPLETED CONTRACTS - Backlog

UNCOMPLETED CONTRACTS - Backlog (Details) - USD ($) $ in Millions	Dec. 31, 2022	Sep. 30, 2022
UNCOMPLETED CONTRACTS
Backlog	$ 206.9	$ 142.3

FAIR VALUE MEASUREMENTS (Detail

FAIR VALUE MEASUREMENTS (Details) - USD ($) $ in Millions	Dec. 31, 2022	Sep. 30, 2022
FAIR VALUE MEASUREMENTS
Aggregate principal amount of fixed-rate debt	$ 16	$ 15
Fair value of debt	$ 15	$ 14.5

EARNINGS PER SHARE (Details)

EARNINGS PER SHARE (Details) - USD ($)	3 Months Ended
EARNINGS PER SHARE (Details) - USD ($)	Dec. 31, 2022	Dec. 31, 2021
EARNINGS PER SHARE
Net income	$ 163,518	$ 1,170,980
Weighted average shares outstanding-basic	16,667,185	16,247,898
Weighted average shares-diluted	16,667,185	16,247,898
Earnings per share-basic	$ 0.01	$ 0.07
Earnings per share-diluted	$ 0.01	$ 0.07

INCOME TAXES - Components of in

INCOME TAXES - Components of income taxes (Details) - USD ($)	3 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Federal
Current	$ 266,966	$ 671,808
Deferred	(329,064)	(286,268)
Total	(62,098)	385,540
State
Current	75,299	189,485
Deferred	(92,813)	(80,742)
Total	(17,514)	108,743
Total income tax (benefit) expense	$ (79,612)	$ 494,283

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, 2022	Sep. 30, 2021
Deferred tax liabilities
Property and equipment	$ 7,155,494	$ 7,686,064
Other	530,806	7,632
Total deferred tax liabilities	7,686,300	7,693,696
Deferred income tax assets
Other	913,479	404,093
Net operating loss carryforward	2,739,620	2,834,524
Total deferred tax assets	3,653,099	3,238,617
Total net deferred tax liabilities	$ 4,033,201	$ 4,455,079

INCOME TAXES - Additional Infor

INCOME TAXES - Additional Information (Details)	3 Months Ended
INCOME TAXES - Additional Information (Details)	Dec. 31, 2022	Dec. 31, 2021
INCOME TAXES
Effective income tax rate	94.90%	29.70%

SHORT-TERM AND LONG-TERM DEBT -

SHORT-TERM AND LONG-TERM DEBT - Summary of short-term and long-term debt (Details) - USD ($)	Dec. 31, 2022	Sep. 30, 2022
SHORT-TERM AND LONG-TERM DEBT
Total debt	$ 31,519,811	$ 30,634,420
Less current maturities	17,075,060	17,140,336
Total long term debt	14,444,751	13,494,084
Line of credit payable to bank, final payment due by June 28, 2023
SHORT-TERM AND LONG-TERM DEBT
Total debt	12,500,000	12,500,000
Term note payable to United Bank, WV Pipeline acquisition, final payment due by March 25, 2026
SHORT-TERM AND LONG-TERM DEBT
Total debt	2,361,701	2,529,421
Notes payable to finance companies due January 2023 through August 2026
SHORT-TERM AND LONG-TERM DEBT
Total debt	776,551	889,165
Note payable to finance company for insurance premiums financed final due November 2022 in monthly installments
SHORT-TERM AND LONG-TERM DEBT
Total debt		580,320
Notes payable to bank, final payment due November 2034
SHORT-TERM AND LONG-TERM DEBT
Total debt	854,087	867,383
Notes payable to bank, final payment due November 2025
SHORT-TERM AND LONG-TERM DEBT
Total debt	374,201	412,917
Notes payable to banks due October 2027
SHORT-TERM AND LONG-TERM DEBT
Total debt	3,011,436
Notes payable to David and Daniel Bolton due final payment December 31, 2026
SHORT-TERM AND LONG-TERM DEBT
Total debt	1,637,500	2,380,000
Notes payable to bank, monthly interest rate at 8.75%, final payment due september 2026
SHORT-TERM AND LONG-TERM DEBT
Total debt	2,391,154	2,549,281
Term note payable to United Bank, Tri-State Paving acquisition, final payment due by June 1, 2027
SHORT-TERM AND LONG-TERM DEBT
Total debt	6,666,246	6,982,097
Notes payable to Corns Enterprises, final payment due April 29, 2026
SHORT-TERM AND LONG-TERM DEBT
Total debt	$ 946,935	$ 943,836

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, 2022	Sep. 30, 2022	Sep. 30, 2021
Line of credit payable to bank, final payment due by June 28, 2023
SHORT-TERM AND LONG-TERM DEBT
Interest rate	7.75%
Term note payable to United Bank, WV Pipeline acquisition, final payment due by March 25, 2026
SHORT-TERM AND LONG-TERM DEBT
Interest rate	4.25%
Note payable in monthly or annual installments	$ 64,853
Notes payable to finance companies due January 2023 through August 2026
SHORT-TERM AND LONG-TERM DEBT
Note payable in monthly or annual installments	$ 32,000	$ 60,000
Notes payable to finance companies due January 2023 through August 2026 \| Minimum
SHORT-TERM AND LONG-TERM DEBT
Interest rate	0%
Notes payable to finance companies due January 2023 through August 2026 \| Maximum
SHORT-TERM AND LONG-TERM DEBT
Interest rate	6.03%
Note payable to finance company for insurance premiums financed final due November 2022 in monthly installments
SHORT-TERM AND LONG-TERM DEBT
Interest rate		3.50%
Note payable in monthly or annual installments		$ 282,000	$ 272,000
Notes payable to bank, final payment due November 2034
SHORT-TERM AND LONG-TERM DEBT
Interest rate	4.82%
Note payable in monthly or annual installments	$ 7,848
Notes payable to bank, final payment due November 2025
SHORT-TERM AND LONG-TERM DEBT
Interest rate	8.75%
Note payable in monthly or annual installments	$ 12,464
Notes payable to banks due October 2027
SHORT-TERM AND LONG-TERM DEBT
Interest rate	6%
Note payable in monthly or annual installments	$ 59,932
Notes payable to David and Daniel Bolton due final payment December 31, 2026
SHORT-TERM AND LONG-TERM DEBT
Interest rate	3.25%
Note payable in monthly or annual installments	$ 500,000
Notes payable to bank, monthly interest rate at 8.75%, final payment due september 2026
SHORT-TERM AND LONG-TERM DEBT
Interest rate	8.75%
Note payable in monthly or annual installments	$ 68,073
Term note payable to United Bank, Tri-State Paving acquisition, final payment due by June 1, 2027
SHORT-TERM AND LONG-TERM DEBT
Interest rate	4.50%
Note payable in monthly or annual installments	$ 140,000
Notes Payable To Corns Enterprises, Final Payment Due April 29, 2026 [Member]
SHORT-TERM AND LONG-TERM DEBT
Interest rate	3.50%
Notes payable on annual installments	$ 250,000

SHORT-TERM AND LONG-TERM DEBT_3

SHORT-TERM AND LONG-TERM DEBT - Interest rates (Details) - USD ($)		3 Months Ended
	Jul. 13, 2022	Dec. 31, 2022	Sep. 30, 2022	Sep. 30, 2021
SHORT-TERM AND LONG-TERM DEBT
Insurance policy premium outstanding			$ 580,000
Ratio to be Maintained by Borrower for Maximum Senior Funded Debt to EBDITA		3.5
United Bank, Inc. \| Revolving credit facility
SHORT-TERM AND LONG-TERM DEBT
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%	4.50%
Interest rate			5.50%
Insurance policy premium outstanding		$ 0
Percentage of eligible accounts receivable		30%
Minimum tangible net worth		$ 28,000,000
Minimum traditional debt service coverage ratio		1.50x
Minimum current ratio		1.20x
Maximum debt to tangible net worth ratio		2.75x
United Bank, Inc. \| Revolving credit facility \| Revolving line of credit component one
SHORT-TERM AND LONG-TERM DEBT
Line of credit				$ 12,500,000
Amount available to borrowing		$ 12,500,000	$ 12,500,000
United Bank, Inc. \| Revolving credit facility \| Revolving line of credit component two
SHORT-TERM AND LONG-TERM DEBT
Line of credit		$ 2,500,000
Interest rate		7.75%

GOODWILL AND INTANGIBLE ASSET_2

GOODWILL AND INTANGIBLE ASSETS - Goodwill (Details) - USD ($)	3 Months Ended	12 Months Ended
	Dec. 31, 2022	Sep. 30, 2022
Goodwill
Beginning balance	$ 4,087,554	$ 1,814,317
Acquired	0	2,273,237
Ending balance	$ 4,087,554	$ 4,087,554

GOODWILL AND INTANGIBLE ASSET_3

GOODWILL AND INTANGIBLE ASSETS - Intangible assets subject to amortization (Details) - USD ($)		3 Months Ended
	Dec. 31, 2022	Dec. 31, 2022	Sep. 30, 2022	Dec. 31, 2021
GOODWILL AND INTANGIBLE ASSETS
Original Cost	$ 4,548,843	$ 4,548,843
Accumulated Amortization and Impairment	807,933	132,780	$ 675,153
Net Book Value	3,740,910	3,740,910
Accumulated Amortization and impairment on identifiable intangible assets		$ 132,780		$ 119,456
Customer Relationships \| West Virginia Pipeline:
GOODWILL AND INTANGIBLE ASSETS
Remaining Life		96 months
Original Cost	2,209,724	$ 2,209,724
Accumulated Amortization and Impairment	441,935	55,242	386,693
Net Book Value	1,767,789	$ 1,767,789
Customer Relationships \| Tri-State Paving:
GOODWILL AND INTANGIBLE ASSETS
Remaining Life		112 months
Original Cost	1,649,159	$ 1,649,159
Accumulated Amortization and Impairment	108,061	41,280	66,781
Net Book Value	1,541,098	$ 1,541,098
Tradename \| West Virginia Pipeline:
GOODWILL AND INTANGIBLE ASSETS
Remaining Life		96 months
Original Cost	263,584	$ 263,584
Accumulated Amortization and Impairment	52,731	6,595	46,136
Net Book Value	210,853	$ 210,853
Tradename \| Tri-State Paving:
GOODWILL AND INTANGIBLE ASSETS
Remaining Life		112 months
Original Cost	203,213	$ 203,213
Accumulated Amortization and Impairment	13,450	5,082	8,368
Net Book Value	189,763	$ 189,763
Non-competes \| West Virginia Pipeline:
GOODWILL AND INTANGIBLE ASSETS
Remaining Life		0 months
Original Cost	83,203	$ 83,203
Accumulated Amortization and Impairment	83,203	$ 10,397	72,806
Non-competes \| Tri-State Paving:
GOODWILL AND INTANGIBLE ASSETS
Remaining Life		4 months
Original Cost	39,960	$ 39,960
Accumulated Amortization and Impairment	26,607	10,017	16,590
Net Book Value	13,353	$ 13,353
Employment agreement/non-compete \| Revolt Energy:
GOODWILL AND INTANGIBLE ASSETS
Remaining Life		16 months
Original Cost	100,000	$ 100,000
Accumulated Amortization and Impairment	81,946	4,167	$ 77,779
Net Book Value	$ 18,054	$ 18,054

GOODWILL AND INTANGIBLE ASSET_4

GOODWILL AND INTANGIBLE ASSETS - Identifiable intangible assets (Details)	Dec. 31, 2022 USD ($)
Amortization expense
January 2023 to December 2023	$ 462,590
January 2024 to December 2024	433,955
January 2025 to December 2025	432,569
January 2026 to December 2026	432,569
January 2027 to December 2027	432,569
After	1,546,657
Total	$ 3,740,910

LEASE OBLIGATIONS (Details)

LEASE OBLIGATIONS (Details)				3 Months Ended
LEASE OBLIGATIONS (Details)	Aug. 11, 2022 USD ($) item	Apr. 29, 2022 USD ($) item	Mar. 25, 2021 item	Dec. 31, 2022 USD ($) agreement	Dec. 31, 2021 USD ($)	Sep. 30, 2022 USD ($)	Aug. 12, 2022 USD ($)
LEASE OBLIGATIONS
Operating lease payments for office space per month				$ 1,500
Term of operating lease			2 years
Number of renewable options available \| item			5
Operating lease, renewal term			1 year
Percentage of maximum increases in rent			5%
Number of financing leases entered \| agreement				2
Finance lease, value				$ 160,000
Term of finance leases				22 months
Finance lease, interest rate				0%
Finance lease, monthly installment payments				$ 6,645
Option to cancel the finance lease				false
Rental expense				$ 2,700,000	$ 1,900,000
Number of right of use operating leases \| item		2
Carrying value				506,606		$ 588,653
Operating Lease for Hurricane, WV Facility
LEASE OBLIGATIONS
Net present value		$ 236,000
Carrying value				186,000
Operating Lease for Chattanooga, Tennessee Facility
LEASE OBLIGATIONS
Net present value		$ 144,000
Carrying value				$ 103,000
Interest rate on operating lease				4.50%
Operating Lease with Enterprise Fleet Management, Inc
LEASE OBLIGATIONS
Net present value	$ 1,200,000
Carrying value				$ 1,100,000
Interest rate on operating lease	4.50%
Number of vehicles to be used \| item	31
Operating Lease with RICA Developers, LLC
LEASE OBLIGATIONS
Net present value							$ 140,000
Carrying value				$ 83,000
Interest rate on operating lease							4.50%

LEASE OBLIGATIONS - Operating L

LEASE OBLIGATIONS - Operating Lease-Weighted Average Remaining Term (Details) - USD ($)	Dec. 31, 2022	Sep. 30, 2022
LEASE OBLIGATIONS
Weighted average remaining term	3 years 2 months 12 days
Present value of operating lease liabilities	$ 1,471,618	$ 1,604,277
Operating lease 1
LEASE OBLIGATIONS
Weighted average remaining term	2 years 3 months 18 days
Present value of operating lease liabilities	$ 186,427	205,267
Operating lease 2
LEASE OBLIGATIONS
Weighted average remaining term	1 year 4 months 24 days
Present value of operating lease liabilities	$ 103,472	119,032
Operating lease 3
LEASE OBLIGATIONS
Weighted average remaining term	3 years 8 months 12 days
Present value of operating lease liabilities	$ 1,098,727	1,166,498
Operating lease 4
LEASE OBLIGATIONS
Weighted average remaining term	8 months 12 days
Present value of operating lease liabilities	$ 82,992	$ 113,480

LEASE OBLIGATIONS - Operating_2

LEASE OBLIGATIONS - Operating Lease Maturity Schedule (Details) - USD ($)	Dec. 31, 2022	Sep. 30, 2022
LEASE OBLIGATIONS
January 2023-December 2023	$ 559,911
January 2024-December 2024	448,309
January 2025-December 2025	352,397
January 2026-December 2026	216,265
Operating lease liability	1,576,882
Less amounts representing interest	(105,264)
Present value of operating lease liabilities	$ 1,471,618	$ 1,604,277

LEASE OBLIGATIONS - Operating_3

LEASE OBLIGATIONS - Operating Lease Expense (Details)	3 Months Ended
LEASE OBLIGATIONS - Operating Lease Expense (Details)	Dec. 31, 2022 USD ($)
LEASE OBLIGATIONS
Total amortization	$ 132,540
Total interest	17,111
Total amortization and interest	149,651
Operating lease 1
LEASE OBLIGATIONS
Total amortization	18,841
Total interest	2,160
Operating lease 2
LEASE OBLIGATIONS
Total amortization	15,559
Total interest	1,219
Operating lease 3
LEASE OBLIGATIONS
Total amortization	68,528
Total interest	12,570
Operating lease 4
LEASE OBLIGATIONS
Total amortization	29,612
Total interest	$ 1,162

SUBSEQUENT EVENTS (Details)

SUBSEQUENT EVENTS (Details) - Subsequent event - USD ($) $ / shares in Units, $ in Millions	Jun. 28, 2023	Jan. 19, 2023	Jan. 18, 2023
SUBSEQUENT EVENTS
Special dividend declared (in dollars per share)			$ 0.05
Ryan Environmental \| Prime Rate
SUBSEQUENT EVENTS
Interest rate on line of credit	4.50%
Minimum
SUBSEQUENT EVENTS
Line of credit		$ 15
Maximum
SUBSEQUENT EVENTS
Line of credit		$ 30