```markdown Part 1: Financial Information [Item 1. Financial Statements (Unaudited)](index=2&type=section&id=Item%201.%20Financial%20Statements%20(Unaudited)) This section presents the unaudited consolidated financial statements for the quarterly period ended December 31, 2023. It includes the Consolidated Balance Sheets, Statements of Income, Statements of Cash Flows, Statements of Changes in Shareholders' Equity, and the accompanying Notes to the Financial Statements, which provide detailed explanations of the company's accounting policies and financial condition [Consolidated Balance Sheets](index=3&type=section&id=Consolidated%20Balance%20Sheets) This section provides a snapshot of the company's financial position, detailing its assets, liabilities, and shareholders' equity at specific points in time Consolidated Balance Sheet Highlights (as of Dec 31, 2023 vs. Sep 30, 2023) | Account | December 31, 2023 ($) | September 30, 2023 ($) | | :--- | :--- | :--- | | **Total Assets** | **$136.4M** | **$142.5M** | | Total Current Assets | $89.8M | $95.2M | | Cash and cash equivalents | $11.3M | $16.4M | | Accounts receivable-trade | $43.2M | $51.2M | | Contract assets | $21.8M | $16.0M | | **Total Liabilities** | **$100.7M** | **$107.9M** | | Total Current Liabilities | $74.4M | $79.9M | | Lines of credit and short term borrowings | $14.9M | $19.8M | | Long-term debt, less current maturities | $17.0M | $18.9M | | **Total Shareholders' Equity** | **$35.6M** | **$34.6M** | [Consolidated Statements of Income](index=4&type=section&id=Consolidated%20Statements%20of%20Income) This section presents the company's financial performance over a period, outlining revenues, expenses, and net income Consolidated Statement of Income (Three Months Ended) | Metric | December 31, 2023 ($) | December 31, 2022 ($) | | :--- | :--- | :--- | | **Revenue** | **$90.2M** | **$60.0M** | | Gross Profit | $10.8M | $6.0M | | Income from Operations | $3.6M | $670,000 | | **Net Income** | **$2.0M** | **$138,000** | | Earnings Per Share (Basic) | $0.12 | $0.01 | | Earnings Per Share (Diluted) | $0.12 | $0.01 | - The company experienced significant year-over-year growth, with revenue increasing by **50.2%** and net income increasing nearly **15-fold** for the three months ended December 31, 2023, compared to the same period in 2022[11](index=11&type=chunk) [Consolidated Statements of Cash Flows](index=5&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) This section details the sources and uses of cash, categorized into operating, investing, and financing activities Consolidated Statement of Cash Flows (Three Months Ended) | Cash Flow Activity | December 31, 2023 ($) | December 31, 2022 ($) | | :--- | :--- | :--- | | Net cash provided by operating activities | $2.9M | $1.6M | | Net cash used in investing activities | ($1.0M) | ($2.3M) | | Net cash (used in) provided by financing activities | ($7.0M) | $787,000 | | **(Decrease) increase in cash** | **($5.2M)** | **$103,000** | | Cash and cash equivalents end of period | $11.3M | $7.5M | [Consolidated Statements of Changes in Shareholders' Equity](index=6&type=section&id=Consolidated%20Statements%20of%20Changes%20in%20Shareholders'%20Equity) This section illustrates the changes in the components of shareholders' equity over a period, including net income and dividends - For the three months ended December 31, 2023, shareholders' equity increased from **$34.6M** to **$35.6M**. The increase was driven by a net income of **$2.0M**, partially offset by dividends of **$0.99M**[15](index=15&type=chunk) [Notes to Unaudited Consolidated Financial Statements](index=7&type=section&id=Notes%20to%20Unaudited%20Consolidated%20Financial%20Statements) This section provides detailed explanations of the company's accounting policies, significant transactions, and financial statement line items - The company operates primarily in the mid-Atlantic and central U.S., providing construction and services to natural gas, petroleum, water distribution, automotive, chemical, and power industries through several wholly-owned subsidiaries[16](index=16&type=chunk) - The Small Business Administration (SBA) is reviewing the company's previously forgiven Paycheck Protection Program (PPP) loans totaling **$9.8M**. Due to the uncertainty, the company has restated its financial statements to record a short-term borrowing for the full amount plus accrued interest[29](index=29&type=chunk)[67](index=67&type=chunk) Revenue by Service Line (Three Months Ended Dec 31, 2023) | Line of Service | Revenue ($) | % of Total | | :--- | :--- | :--- | | Gas & Water Distribution | $17.1M | 18.9% | | Gas & Petroleum Transmission | $28.6M | 31.7% | | Electrical, Mechanical, & General | $44.5M | 49.4% | | **Total** | **$90.2M** | **100.0%** | - As of December 31, 2023, the company had **$132.2M** in remaining unsatisfied performance obligations (backlog), which is expected to be recognized as revenue over the next twelve months[44](index=44&type=chunk) - The company's unaudited backlog was **$185.9M** at December 31, 2023, a decrease from **$229.8M** at September 30, 2023[45](index=45&type=chunk) - On November 15, 2023, the Board of Directors approved an annual dividend of $0.06 per common share, which was paid on January 2, 2024[85](index=85&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=24&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management provides a detailed analysis of the company's financial performance for the three months ended December 31, 2023, compared to the same period in 2022. The discussion covers a significant 50.2% increase in revenue, improved gross profit margins, and a substantial rise in net income. It also details the changes in the company's financial condition, liquidity position, capital resources, and critical accounting estimates [Results of Operations](index=29&type=section&id=Results%20of%20Operations) This section analyzes the company's financial performance, focusing on revenue growth, gross profit margins, and net income drivers Revenue by Segment (YoY Comparison) | Segment | Q1 FY24 Revenue ($) | Q1 FY23 Revenue ($) | % Change | | :--- | :--- | :--- | :--- | | Gas & Water Distribution | $17.1M | $12.4M | +37.9% | | Gas & Petroleum Transmission | $28.6M | $16.8M | +69.6% | | Electrical, Mechanical, & General | $44.5M | $30.8M | +44.5% | | **Total** | **$90.1M** | **$60.0M** | **+50.2%** | - The increase in total revenues was driven by increased work across all business categories, particularly from gas transmission work awarded in the prior fiscal year that continued into Q1 FY24[109](index=109&type=chunk)[111](index=111&type=chunk) - Gross profit increased by **81.1%** to **$10.8M**, with the gross profit margin improving from **10.0%** to **12.0%** year-over-year[119](index=119&type=chunk) - Selling and administrative expenses increased by **$1.9M** to **$7.2M**, primarily due to hiring additional personnel to manage expected growth[124](index=124&type=chunk) - Net income for the quarter was **$2.0M**, a significant increase from **$138,000** in the prior-year period, driven by higher revenues and improved gross profit[129](index=129&type=chunk) [Comparison of Financial Condition](index=32&type=section&id=Comparison%20of%20Financial%20Condition) This section compares the company's balance sheet accounts between periods, highlighting changes in assets, liabilities, and equity - Total assets decreased by **$6.1M** to **$136.4M** at December 31, 2023, from September 30, 2023[130](index=130&type=chunk) - Key changes in assets include a **$5.2M** decrease in cash and cash equivalents and an **$8.0M** decrease in accounts receivable, offset by a **$5.8M** increase in contract assets[131](index=131&type=chunk)[132](index=132&type=chunk)[137](index=137&type=chunk) - Total liabilities decreased by **$7.2M** to **$100.7M**, primarily due to a **$4.9M** reduction in lines of credit and short-term borrowings[140](index=140&type=chunk) - Shareholders' equity increased by **$1.0M** to **$35.6M**, resulting from net income of **$2.0M** partially offset by a **$0.99M** dividend declaration[147](index=147&type=chunk) [Liquidity and Capital Resources](index=34&type=section&id=Liquidity%20and%20Capital%20Resources) This section assesses the company's ability to meet its short-term obligations and fund its operations through available cash and credit facilities - The company's operating line of credit was increased to **$30.0M** and renewed through June 28, 2024. As of December 31, 2023, **$11.3M** was available for borrowing[149](index=149&type=chunk)[150](index=150&type=chunk) - The company was in compliance with all debt covenants at December 31, 2023, as its lender agreed to omit the effect of the PPP loan restatement from compliance calculations pending a final SBA decision[151](index=151&type=chunk) - The company has multiple long-term debt agreements for acquisitions and equipment purchases, including a **$9.3M** equipment line of credit entered into in June 2023[168](index=168&type=chunk) - The company has **$98.4M** in performance bonds outstanding as of December 31, 2023, which are required for certain customer contracts[179](index=179&type=chunk) [Critical Accounting Estimates](index=42&type=section&id=Critical%20Accounting%20Estimates) This section outlines the key accounting estimates and judgments that significantly impact the company's financial reporting - Management identifies several critical accounting estimates that require significant judgment, including: - Revenue recognition, particularly estimating costs to complete projects - Allowance for doubtful accounts - Impairment of goodwill and intangible assets - Depreciation and amortization - Income taxes - Accounting for PPP loans[192](index=192&type=chunk)[193](index=193&type=chunk)[201](index=201&type=chunk)[204](index=204&type=chunk)[208](index=208&type=chunk)[213](index=213&type=chunk)[216](index=216&type=chunk) [Outlook](index=47&type=section&id=Outlook) This section provides management's perspective on future business prospects, market conditions, and strategic initiatives - The company is experiencing a significant increase in bid opportunities for its core services. The backlog at December 31, 2023, was **$185.9M**, compared to **$206.9M** a year prior[222](index=222&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=49&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) As a smaller reporting company, Energy Services of America Corporation is not required to provide quantitative and qualitative disclosures about market risk - Disclosure is not required for a smaller reporting company[224](index=224&type=chunk) [Item 4. Controls and Procedures](index=49&type=section&id=Item%204.%20Controls%20and%20Procedures) Based on an evaluation conducted by management, including the CEO and CFO, the company's disclosure controls and procedures were deemed effective as of December 31, 2023. There were no material changes to the company's internal control over financial reporting during the first quarter of fiscal year 2024 - The CEO and CFO concluded that the company's disclosure controls and procedures were effective as of the end of the period covered by the report[225](index=225&type=chunk) - No material changes in internal control over financial reporting occurred during the first quarter of fiscal year 2024[226](index=226&type=chunk) Part II: Other Information [Item 1. Legal Proceedings](index=50&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in a lawsuit against a former customer where it was awarded $13.1 million; this judgment is currently under appeal and has not been recognized in the financial statements. Additionally, the company is disputing a withdrawal liability claim from a pension plan and does not expect any future liabilities related to this claim - In a lawsuit against a former customer, the company was awarded **$13.1M**. The case is currently under appeal and the amount has not been recognized in the financial statements[229](index=229&type=chunk) - The company received a withdrawal liability claim from a pension plan, which it is disputing and believes is covered by a federal law exemption. Negotiations are ongoing, and future payments have been suspended[230](index=230&type=chunk) [Item 1A. Risk Factors](index=50&type=section&id=Item%201A.%20Risk%20Factors) There have been no material changes to the risk factors previously disclosed in the company's Annual Report on Form 10-K filed with the SEC on January 16, 2024 - No material changes to risk factors have occurred since the filing of the Annual Report on Form 10-K on January 16, 2024[232](index=232&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=51&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) During the three months ended December 31, 2023, the company did not have any unregistered sales of equity securities. Additionally, no shares were repurchased under the company's existing share repurchase program during this period - There were no unregistered sales of equity securities during the quarter[236](index=236&type=chunk) - The company did not repurchase any of its common stock during the three months ended December 31, 2023, under its authorized share repurchase program[236](index=236&type=chunk) [Item 6. Exhibits](index=52&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Form 10-Q report, which include certifications from the Chief Executive Officer and Chief Financial Officer as required by the Sarbanes-Oxley Act of 2002, as well as XBRL data files - The exhibits filed with this report include CEO and CFO certifications pursuant to Sarbanes-Oxley Sections 302 and 906, and XBRL Interactive Data Files[237](index=237&type=chunk) ```

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Fiscal Year ended September 30, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ____________________ to ____________________ Commission File Number: 001-32998 Energy Services of America Corporation (Exact Name of Registrant as Specifie ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q (Mark One) ☒ Quarterly report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the quarterly period ended June 30, 2023. Energy Services of America Corporation (Exact Name of Registrant as Specified in Its Charter) (304) 522-3868 (Registrant's Telephone Number Including Area Code) Securities Registered Pursuant to Section 12(b) of the Act: | | | Name of Each Exchange | | --- | --- | ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q (Mark One) ☒ Quarterly report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the quarterly period ended March 31, 2023. Energy Services of America Corporation (Exact Name of Registrant as Specified in Its Charter) | Delaware | 20-4606266 | | --- | --- | | (State or Other Jurisdiction of Incorporation or | (I.R.S. Employer Identification Number) | | Organization) | | | 75 West 3 rd ...

Revenue and Income - Total revenue for the three months ended December 31, 2022, was $60,042,585, an increase of $17,383,460 or 40.7% compared to $42,659,125 for the same period in 2021[104] - Gas & Petroleum Transmission revenues increased by $5,601,633 or 49.8% to $16,840,150 for the three months ended December 31, 2022, compared to $11,238,517 for the same period in 2021[105] - Electrical, Mechanical, and General construction services revenues rose by $11,256,016 or 57.8% to $30,714,590 for the three months ended December 31, 2022, compared to $19,458,574 for the same period in 2021[105] - Net income for the three months ended December 31, 2022, was $163,518, a decrease of $1,007,462 or 85.0% compared to $1,170,980 for the same period in 2021[104] - Earnings per share-basic for the three months ended December 31, 2022, was $0.01, down from $0.07 for the same period in 2021[104] Costs and Expenses - Total cost of revenues increased by $16,705,571 or 44.7% to $54,056,323 for the three months ended December 31, 2022, compared to $37,350,752 for the same period in 2021[110] - Electrical, Mechanical, & General construction services cost of revenues increased by $10.9 million to $29.0 million for the three months ended December 31, 2022, compared to $18.1 million for the same period in 2021[113] - Selling and administrative expenses increased by $1.7 million to $5.3 million for the three months ended December 31, 2022, compared to $3.6 million for the same period in 2021[119] - The Company recorded rental expenses of $2.7 million for the three months ended December 31, 2022, compared to $1.9 million for the same period in 2021[162] Profitability - The Company experienced a gross profit of $5,986,262 for the three months ended December 31, 2022, compared to $5,308,373 for the same period in 2021, reflecting an increase of $677,889 or 12.8%[104] - Total gross profit increased by $678,000 to $6.0 million for the three months ended December 31, 2022, compared to $5.3 million for the same period in 2021, with a gross profit percentage of 10.0%[115] - Gas & Petroleum Transmission gross profit rose by $1.3 million to $2.8 million for the three months ended December 31, 2022, compared to $1.5 million for the same period in 2021, reflecting an 87.1% increase[117] Assets and Liabilities - Total assets decreased by $4.7 million to $107.9 million at December 31, 2022, compared to $112.6 million at the prior fiscal year end[126] - Accounts receivable decreased by $3.2 million to $35.3 million at December 31, 2022, compared to $38.5 million at the prior fiscal year end[127] - The Company had total liabilities of $69.4 million at December 31, 2022, a decrease of $4.9 million from the prior fiscal year end balance of $74.3 million[135] - Long-term debt increased by $1.5 million to $19.0 million at December 31, 2022, primarily due to $3.2 million in new debt agreements[140] Cash Flow and Financing - Cash and cash equivalents totaled $7.5 million at December 31, 2022, an increase of $103,000 from the prior fiscal year end balance of $7.4 million[134] - The Company entered into a 10-year loan agreement of $1.1 million with United Bank, with a variable interest rate of 8.75% as of December 31, 2022, and has made principal payments of $746,000[149] - The Company has a $3.0 million Non-Revolving Note agreement with United Bank, with monthly payments of $68,150 starting in February 2022, and has made principal payments of $609,000 as of December 31, 2022[151] - A $3.5 million Non-Revolving Note agreement was established to repay a line of credit for the West Virginia Pipeline acquisition, with monthly payments of $64,853 and principal payments of $1.1 million made as of December 31, 2022[152] - The Company financed the purchase of Tri-State Paving with a $7.5 million Non-Revolving Note agreement, with monthly payments of $129,910 and principal payments of $834,000 made as of December 31, 2022[153] - A $3.1 million promissory note agreement was entered into for equipment purchased in the Ryan Construction acquisition, with monthly payments of $59,932 and principal payments of $89,000 made as of December 31, 2022[154] Tax and Deferred Income - The effective tax rate for the Company was (94.9%) for the three months ended December 31, 2022, compared to 29.7% for the same period in 2021[202] - The Company had a net deferred income tax liability of $4.0 million as of December 31, 2022, down from $4.5 million at September 30, 2022[203] Backlog and Opportunities - The Company's backlog as of December 31, 2022, was $206.9 million, a significant increase from $101.6 million at December 31, 2021, and $142.3 million at September 30, 2022[210] - The Company is experiencing a significant increase in bid opportunities for natural gas transmission and distribution projects, as well as electrical, mechanical, and general construction projects[210] Other Financial Information - The Company 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[207] - The Company's line of credit was increased from $15.0 million to $30.0 million, with a maturity date of June 28, 2023, and a variable interest rate based on the "Wall Street Journal" Prime Rate with a floor of 4.5%[207] - The Company recorded costs incurred on contracts in progress of $110,656,030 as of December 31, 2022, down from $192,957,145 as of September 30, 2022[187] - Estimated earnings, net of estimated losses, decreased to $16,806,651 as of December 31, 2022, from $28,150,060 as of September 30, 2022[187] - The Company's depreciation expense for the three months ended December 31, 2022, was $1.8 million, compared to $1.3 million for the same period in 2021[198] - The Company's intangible amortization expense for the three months ended December 31, 2022, was $133,000, up from $119,000 in the same period of 2021[199] - The allowance for doubtful accounts decreased to $55,538 at December 31, 2022, from $70,310 at the beginning of the year[190] - The Company did not experience significant effects from inflation on its results for the three months ended December 31, 2022[179] - At December 31, 2022, the Company had $79.0 million in performance bonds outstanding, which are essential for securing future contracts[166] - The Company was awarded $13.1 million in a lawsuit judgment related to a pipeline construction project, although this amount has not been recognized in the financial statements as of December 31, 2022[169] - The Company entered into a 36-month operating lease for facilities in Hurricane, West Virginia, with monthly payments of $7,000, resulting in a total net present value of $236,000 at inception[175] - SQP made an equity investment of $156,000 in 1030 Quarrier Development, LLC, which is expected to generate rental income upon completion of a commercial project[176] - The Company does not expect a significant impact from the new accounting standards ASU 2021-08 and ASU 2021-10 on its results of operations, financial position, and cash flows[204][205]

Part I [Business](index=3&type=section&id=ITEM%201.%20Business) Energy Services of America, a mid-Atlantic and central U.S. contractor, significantly grew FY2022 revenue and backlog through strategic acquisitions - The company provides construction, replacement, and repair services for natural gas pipelines, storage facilities, and offers electrical and mechanical services to various industries including power, chemical, and automotive[9](index=9&type=chunk) Consolidated Operating Revenues by Segment (FY 2022 vs. FY 2021) | Service Line | FY 2022 Revenue ($) | % of Total | FY 2021 Revenue ($) | % of Total | | :--- | :--- | :--- | :--- | :--- | | Electrical, mechanical, and general contract | $86.0M | 43.5% | $59.9M | 48.9% | | Gas & petroleum transmission | $58.3M | 29.5% | $22.1M | 18.1% | | Gas & water distributions | $53.3M | 27.0% | $40.4M | 33.0% | | **Total** | **$197.6M** | **100.0%** | **$122.5M** | **100.0%** | - The company's backlog of work on existing contracts increased significantly to **$142.3 million** at September 30, 2022, compared to **$72.2 million** at September 30, 2021[42](index=42&type=chunk) - In fiscal year 2022, the company completed two key acquisitions: Tri-State Paving & Sealcoating, LLC in April 2022 and Ryan Environmental, LLC in August 2022, expanding its service offerings in utility paving and directional drilling[28](index=28&type=chunk)[30](index=30&type=chunk) - As of September 30, 2022, the company had **1,055 employees**, including **353 full-time non-union employees**, with a substantial portion of the construction workforce unionized[15](index=15&type=chunk)[58](index=58&type=chunk) [Risk Factors](index=12&type=section&id=ITEM%201A.%20Risk%20Factors) The company faces diverse operational, business, industry, and financial risks, including integration, contract profitability, labor, and credit availability - **Operational Risks:** Operating results vary significantly by quarter due to seasonality, weather, and project mix, and future acquisitions could disrupt business and strain resources[64](index=64&type=chunk)[65](index=65&type=chunk) - **Business Risks:** Profitability can be affected by contract type, ability to obtain surety bonds, potential cancellations, and retaining skilled labor[68](index=68&type=chunk)[69](index=69&type=chunk)[71](index=71&type=chunk)[72](index=72&type=chunk) - **COVID-19 & PPP Loan Risks:** The company faces pandemic economic effects and potential SBA review of its forgiven **$9.8 million** PPP loan, risking penalties or repayment[84](index=84&type=chunk)[87](index=87&type=chunk)[88](index=88&type=chunk) - **Industry & Financial Risks:** Business is susceptible to energy sector downturns, intense competition, project delays, and reliance on credit lines, risking curtailed operations[90](index=90&type=chunk)[92](index=92&type=chunk)[95](index=95&type=chunk) - **Compliance & Legal Risks:** The company is subject to ordinary course lawsuits, occupational health and safety, and environmental regulations, with non-compliance risking significant liabilities[98](index=98&type=chunk)[100](index=100&type=chunk)[104](index=104&type=chunk) - **Stock Ownership Risks:** Common stock is not heavily traded, leading to price volatility, and directors' **36.1%** beneficial ownership provides substantial influence[105](index=105&type=chunk)[107](index=107&type=chunk) [Unresolved Staff Comments](index=20&type=section&id=ITEM%201B.%20Unresolved%20Staff%20Comments) The company reports no unresolved staff comments from the Securities and Exchange Commission - None[108](index=108&type=chunk) [Properties](index=20&type=section&id=ITEM%202.%20Properties) The company and its subsidiaries own headquarters and key offices, while other facilities are leased, all deemed adequate for current operations - The company owns its headquarters in Huntington, WV, and several subsidiary offices, with other facilities in St. Albans, WV, Hurricane, WV, and Bridgeport, WV being leased[109](index=109&type=chunk) [Legal Proceedings](index=20&type=section&id=ITEM%203.%20Legal%20Proceedings) The company was awarded a **$13.1 million** judgment in November 2022, currently under appeal, and is negotiating a pension plan withdrawal liability claim - On November 21, 2022, the company was awarded a **$13.1 million** judgment against a former customer, including a **$5.8 million** jury award, **$1.6 million** in attorney's fees, and **$5.7 million** in penalties and interest, with the defendant filing an appeal on December 16, 2022[110](index=110&type=chunk) - The company received a disputed pension plan withdrawal liability claim, complying with federal payment demands while negotiating a resolution, having expensed **$164,000** in payments as of September 30, 2022[112](index=112&type=chunk) [Mine Safety Disclosures](index=22&type=section&id=ITEM%204.%20Mine%20Safety%20Disclosures) This section is not applicable to the company - None[117](index=117&type=chunk) Part II [Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities](index=22&type=section&id=ITEM%205.%20Market%20for%20Registrant%27s%20Common%20Equity%2C%20Related%20Stockholder%20Matters%20and%20Issuer%20Purchases%20of%20Equity%20Securities) The company's common stock uplisted to Nasdaq in March 2022, with no dividends paid or shares repurchased in FY2022 despite a repurchase authorization - On March 23, 2022, the company's common stock was uplisted to the Nasdaq Capital Market under the symbol **"ESOA"**[114](index=114&type=chunk) Quarterly Common Stock Price Range (Fiscal Years 2021-2022) | Period | High | Low | | :--- | :--- | :--- | | **Fiscal 2021** | | | | Q1 (ended 12/31/20) | $1.30 | $0.81 | | Q2 (ended 03/31/21) | $2.45 | $1.02 | | Q3 (ended 06/30/21) | $2.40 | $1.96 | | Q4 (ended 09/30/21) | $2.40 | $1.62 | | **Fiscal 2022** | | | | Q1 (ended 12/31/21) | $3.65 | $1.32 | | Q2 (ended 03/31/22) | $4.68 | $2.30 | | Q3 (ended 06/30/22) | $3.25 | $1.90 | | Q4 (ended 09/30/22) | $3.49 | $1.77 | - On July 6, 2022, the Board of Directors authorized a share repurchase program for up to **1,000,000 shares** of common stock, with no repurchases made during fiscal year 2022[123](index=123&type=chunk) - The company did not pay any dividends on common stock during fiscal years 2022 and 2021[119](index=119&type=chunk) [Reserved](index=24&type=section&id=ITEM%206.%20Reserved) This item is reserved and contains no information - None [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=25&type=section&id=ITEM%207.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) In fiscal year 2022, revenue increased **61.3%** to **$197.6 million**, driving a turnaround in operating income, though net income decreased due to prior-year PPP loan forgiveness [Results of Operations](index=26&type=section&id=Results%20of%20Operations) FY2022 revenue surged **61.3%** to **$197.6 million**, with gross profit up **73.1%**, and operating income improving, though net income fell due to prior-year PPP loan forgiveness Revenue by Segment (FY 2022 vs. FY 2021) | Segment | FY 2022 Revenue ($) | FY 2021 Revenue ($) | % Change | | :--- | :--- | :--- | :--- | | Gas & Water Distribution | $53.3M | $40.4M | +31.8% | | Gas & Petroleum Transmission | $58.3M | $22.1M | +163.3% | | Electrical, Mechanical, and General | $86.0M | $59.9M | +43.6% | | **Total** | **$197.6M** | **$122.5M** | **+61.3%** | - Revenue growth in Gas & Water Distribution was driven by the acquisition of Tri-State Paving (**$4.9 million** revenue) and a full year of West Virginia Pipeline revenue (**$3.1 million** additional), while Electrical, Mechanical, & General growth was primarily from SQP, which increased revenues by **$19.3 million**[135](index=135&type=chunk)[137](index=137&type=chunk) Gross Profit by Segment (FY 2022 vs. FY 2021) | Segment | FY 2022 Gross Profit ($) | FY 2021 Gross Profit ($) | % Change | | :--- | :--- | :--- | :--- | | Gas & Water Distribution | $11.6M | $8.0M | +45.3% | | Gas & Petroleum Transmission | $3.4M | $4.9M | -30.3% | | Electrical, Mechanical, and General | $6.9M | $4.3M | +59.1% | | **Total Gross Profit** | **$22.4M** | **$12.9M** | **+73.1%** | - The decrease in Gas & Petroleum Transmission gross profit was primarily due to a projected loss of **$2.1 million** on a single gas transmission project[146](index=146&type=chunk) - Net income available to common stockholders was **$3.9 million** (**$0.24** per diluted share) in FY2022, compared to **$8.8 million** (**$0.52** per diluted share) in FY2021, with the decrease due to the one-time **$9.8 million** PPP loan forgiveness in FY2021[158](index=158&type=chunk)[315](index=315&type=chunk) [Liquidity and Capital Resources](index=34&type=section&id=Liquidity%20and%20Capital%20Resources) The company manages liquidity through operations and a **$15.0 million** credit line, with total debt at **$30.6 million**, and significant off-balance sheet arrangements including **$82.8 million** in performance bonds - The company has a **$15.0 million** operating line of credit, having borrowed the full **$12.5 million** available under the primary tranche as of September 30, 2022, and received a waiver for covenant non-compliance[177](index=177&type=chunk)[181](index=181&type=chunk) Maturities of Total Debt as of Sept 30, 2022 | Year | Amount ($) | | :--- | :--- | | 2023 | $17,140,336 | | 2024 | $4,061,665 | | 2025 | $4,170,114 | | 2026 | $3,569,091 | | 2027 | $1,069,272 | | Thereafter | $623,942 | | **Total** | **$30,634,420** | - The company has significant off-balance sheet arrangements, including **$82.8 million** in outstanding performance bonds and rental agreements that resulted in **$9.8 million** of expense in FY2022[204](index=204&type=chunk)[208](index=208&type=chunk) - Cash and cash equivalents decreased from **$8.2 million** to **$7.4 million**, primarily due to **$8.3 million** used in investing activities (mainly acquisitions), partially offset by **$8.3 million** in cash provided by operations[167](index=167&type=chunk)[320](index=320&type=chunk) [Critical Accounting Estimates](index=43&type=section&id=Critical%20Accounting%20Estimates) The company's financial statements rely on critical accounting estimates for revenue recognition, goodwill impairment, depreciation, and income taxes, with revenue recognition being particularly sensitive to cost estimates - Revenue for Lump Sum and Unit Price contracts is recognized over time using a cost-to-cost input method, which relies on estimates of total contract cost and profitability[226](index=226&type=chunk)[331](index=331&type=chunk) Contract Assets and Liabilities Summary | Description | Sept 30, 2022 ($) | Sept 30, 2021 ($) | | :--- | :--- | :--- | | Costs and estimated earnings in excess of billings (Contract Asset) | $16,109,593 | $8,730,402 | | Billings in excess of costs and estimated earnings (Contract Liability) | $6,027,578 | $3,153,290 | - Goodwill and intangible assets are tested for impairment by first assessing qualitative factors, with no impairment recorded for goodwill at September 30, 2022[238](index=238&type=chunk)[461](index=461&type=chunk) - The effective income tax rate was **37.0%** in FY2022, compared to **(0.3%)** in FY2021, with the low 2021 rate significantly impacted by the non-taxable **$9.8 million** PPP loan forgiveness[250](index=250&type=chunk)[251](index=251&type=chunk) [Quantitative and Qualitative Disclosures about Market Risk](index=51&type=section&id=ITEM%207A.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) This disclosure is not required for smaller reporting companies - Not required for smaller reporting companies[260](index=260&type=chunk) [Financial Statements and Supplementary Data](index=51&type=section&id=ITEM%208.%20Financial%20Statements%20and%20Supplementary%20Data) This section includes the company's audited consolidated financial statements for FY2022 and FY2021, with an unqualified auditor's opinion highlighting critical audit matters - The independent auditor, Baker Tilly US, LLP, issued an unqualified opinion on the consolidated financial statements[296](index=296&type=chunk) - Critical Audit Matters identified were Over-Time Revenue Recognition due to judgment in estimating contract costs, and Valuation of Goodwill and Intangible Assets from business combinations due to estimation uncertainty[301](index=301&type=chunk)[302](index=302&type=chunk)[306](index=306&type=chunk) Consolidated Balance Sheet Highlights (as of Sept 30, 2022) | Category | Amount ($) | | :--- | :--- | | **Assets** | | | Total Current Assets | $70,392,493 | | Total Assets | $112,626,845 | | **Liabilities & Equity** | | | Total Current Liabilities | $55,336,983 | | Total Liabilities | $74,301,770 | | Total Shareholders' Equity | $38,325,075 | Consolidated Income Statement Highlights (Year Ended Sept 30, 2022) | Category | Amount ($) | | :--- | :--- | | Revenue | $197,590,000 | | Gross Profit | $22,370,748 | | Income from Operations | $6,492,610 | | Net Income | $3,850,073 | | Diluted EPS | $0.24 | [Changes in and Disagreements with Accountants on Accounting and Financial Disclosure](index=51&type=section&id=ITEM%209.%20Changes%20in%20and%20Disagreements%20with%20Accountants%20on%20Accounting%20and%20Financial%20Disclosure) The company reports no changes in or disagreements with its accountants on accounting principles or financial disclosure - None[262](index=262&type=chunk) [Controls and Procedures](index=51&type=section&id=ITEM%209A.%20Controls%20and%20Procedures) Management concluded the company's disclosure controls and internal control over financial reporting were effective as of September 30, 2022, with no material weaknesses or changes - Management concluded that the company's disclosure controls and procedures were effective as of the end of the fiscal year[263](index=263&type=chunk) - Based on the COSO 2013 framework, management concluded that the company's internal control over financial reporting was effective as of September 30, 2022, and no material weaknesses were identified[266](index=266&type=chunk) - No changes in internal control over financial reporting occurred during the fourth quarter of fiscal 2022 that materially affected, or are reasonably likely to materially affect, these controls[269](index=269&type=chunk) [Other Information](index=53&type=section&id=ITEM%209B.%20Other%20Information) There is no other information to report under this item - None[274](index=274&type=chunk) [Disclosure Regarding Foreign Jurisdictions that Prevent Inspections](index=53&type=section&id=ITEM%209C.%20Disclosure%20Regarding%20Foreign%20Jurisdictions%20that%20Prevent%20Inspections) This disclosure is not applicable to the company - Not Applicable[275](index=275&type=chunk) Part III [Directors, Executive Officers and Corporate Governance](index=53&type=section&id=ITEM%2010.%20Directors%2C%20Executive%20Officers%20and%20Corporate%20Governance) Information for this item is incorporated by reference from the company's definitive Proxy Statement for the 2023 Annual Meeting of Stockholders - Information is incorporated by reference from the company's definitive Proxy Statement[271](index=271&type=chunk) [Executive Compensation](index=53&type=section&id=ITEM%2011.%20Executive%20Compensation) Information regarding executive and director compensation is incorporated by reference from the company's definitive Proxy Statement for the 2023 Annual Meeting of Stockholders - Information is incorporated by reference from the company's definitive Proxy Statement[272](index=272&type=chunk) [Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters](index=53&type=section&id=ITEM%2012.%20Security%20Ownership%20of%20Certain%20Beneficial%20Owners%20and%20Management%20and%20Related%20Stockholder%20Matters) This section details securities authorized for issuance under the 2022 Equity Incentive Plan, with **1,500,000** shares available, and incorporates security ownership information by reference Equity Compensation Plan Information as of September 30, 2022 | Plan Category | Securities to be issued upon exercise | Weighted average exercise price | Securities remaining available for issuance | | :--- | :--- | :--- | :--- | | Equity compensation plans approved by stockholders | — | — | 1,500,000 | | Equity compensations plans not approved by stockholders | — | — | — | | **Total** | **—** | **—** | **1,500,000** | - Information on security ownership of certain beneficial owners and management is incorporated by reference from the Proxy Statement[276](index=276&type=chunk)[281](index=281&type=chunk) [Certain Relationships and Related Transactions, and Director Independence](index=55&type=section&id=ITEM%2013.%20Certain%20Relationships%20and%20Related%20Transactions%2C%20and%20Director%20Independence) Information regarding certain relationships, related party transactions, and director independence is incorporated by reference from the company's definitive Proxy Statement - Information is incorporated by reference from the company's definitive Proxy Statement[282](index=282&type=chunk) [Principal Accountant Fees and Services](index=55&type=section&id=ITEM%2014.%20Principal%20Accountant%20Fees%20and%20Services) Information regarding principal accountant fees and services is incorporated by reference from the company's definitive Proxy Statement - Information is incorporated by reference from the company's definitive Proxy Statement[283](index=283&type=chunk) Part IV [Exhibits and Financial Statement Schedules](index=56&type=section&id=ITEM%2015.%20Exhibits%20and%20Financial%20Statement%20Schedules) This section lists financial statements and exhibits filed as part of the Form 10-K, including corporate governance documents, material contracts, and required certifications - The consolidated financial statements are included as part of the report[286](index=286&type=chunk) - A list of exhibits filed with the report includes corporate governance documents, material contracts like the 2022 Equity Incentive Plan, a list of subsidiaries, consent of the public accounting firm, and required CEO/CFO certifications[289](index=289&type=chunk) [Form 10-K Summary](index=57&type=section&id=ITEM%2016.%20Form%2010-K%20Summary) There is no summary provided under this item - None[290](index=290&type=chunk)

Table of Contents Title of Each Class Trading Symbols Name of Each Exchange On Which Registered Common Stock, Par Value $0.0001 ESOA The Nasdaq Stock Market LLC Large accelerated filer ☐ Accelerated filer ☐ Non-accelerated filer ☒ Smaller reporting company ☒ Emerging growth company ☐ UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q (Mark One) ☒ Quarterly report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the quarterly period ended June 30, 2022 ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q (Mark One) ☒ Quarterly report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the quarterly period ended March 31, 2022. Energy Services of America Corporation (Exact Name of Registrant as Specified in Its Charter) | --- | --- | --- | |------------------------------------------------------------------------------|--------------------------|------------------------------------------- ...

Table of Contents None None None UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q (Mark One) ☒ Quarterly report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the quarterly period ended December 31, 2021. | --- | --- | --- | |------------------------------------------------------------------------------------------------------------------------------------------------------|-----------------------------------------------|-------------------------- ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Fiscal Year ended September 30, 2021 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ____________________ to ____________________ Commission File Number: 001-32998 Energy Services of America Corporation (Exact Name of Registrant as Specifie ...