Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Jun. 30, 2023 | Aug. 15, 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 | Jun. 30, 2023 | |
Entity Registrant Name | Energy Services of America Corporation | |
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 $0.0001 | |
Trading Symbol | ESOA | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 16,567,185 | |
Entity Central Index Key | 0001357971 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --09-30 | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q3 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Jun. 30, 2023 | Sep. 30, 2022 |
Current assets | ||
Cash and cash equivalents | $ 9,038,562 | $ 7,427,474 |
Accounts receivable-trade | 47,875,592 | 38,525,223 |
Allowance for doubtful accounts | (51,063) | (70,310) |
Retainages receivable | 7,324,964 | 4,443,679 |
Other receivables | 567,031 | 10,866 |
Contract assets | 12,198,918 | 16,109,593 |
Prepaid expenses and other | 4,849,731 | 3,945,968 |
Total current assets | 81,803,735 | 70,392,493 |
Property, plant and equipment, at cost | 82,131,349 | 73,736,433 |
less accumulated depreciation | (45,933,846) | (41,074,646) |
Total property and equipment, net | 36,197,503 | 32,661,787 |
Right-of-use assets-operating lease | 3,674,455 | 1,611,321 |
Intangible assets, net | 3,472,469 | 3,873,690 |
Goodwill | 4,087,554 | 4,087,554 |
Total assets | 129,235,716 | 112,626,845 |
Current liabilities | ||
Current maturities of long-term debt | 4,858,795 | 4,060,016 |
Lines of credit and short-term borrowings | 28,248,900 | 23,164,851 |
Current maturities of operating lease liabilities | 1,213,496 | 588,653 |
Accounts payable | 18,833,990 | 20,314,408 |
Accrued expenses and other current liabilities | 10,318,491 | 11,266,008 |
Contract liabilities | 16,576,181 | 6,027,578 |
Total current liabilities | 80,049,853 | 65,421,514 |
Long-term debt, less current maturities | 12,731,183 | 13,494,084 |
Long-term operating lease liabilities, less current maturities | 2,431,780 | 1,015,624 |
Deferred tax liability | 5,155,011 | 4,455,079 |
Total liabilities | 100,367,827 | 84,386,301 |
Shareholders' equity | ||
Common stock, $.0001 par value Authorized 50,000,000 shares, 17,885,615 issued and 16,567,185 outstanding at June 30, 2023 and 17,885,615 issued and 16,667,185 outstanding at September 30, 2022 | 1,789 | 1,789 |
Treasury stock, 1,318,430 shares at June 30, 2023 and 1,218,430 shares at September 30, 2022 | (132) | (122) |
Additional paid in capital | 60,288,745 | 60,508,350 |
Retained deficit | (31,422,513) | (32,269,473) |
Total shareholders' equity | 28,867,889 | 28,240,544 |
Total liabilities and shareholders' equity | $ 129,235,716 | $ 112,626,845 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parentheticals) - $ / shares | Jun. 30, 2023 | 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 | 17,885,615 |
Common stock, shares outstanding | 16,567,185 | 16,667,185 |
Treasury stock, shares | 1,318,430 | 1,218,430 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Consolidated Statements of Income | ||||
Revenue | $ 85,529,892 | $ 51,171,939 | $ 199,245,920 | $ 129,223,642 |
Cost of revenues | 74,650,897 | 44,754,346 | 178,480,010 | 114,632,057 |
Gross profit | 10,878,995 | 6,417,593 | 20,765,910 | 14,591,585 |
Selling and administrative expenses | 5,283,617 | 3,821,043 | 16,487,502 | 10,870,677 |
Income from operations | 5,595,378 | 2,596,550 | 4,278,408 | 3,720,908 |
Other income (expense) | ||||
Interest income | 196 | 576 | ||
Other nonoperating expense | (72,338) | (174,957) | (163,525) | (438,195) |
Interest expense | (639,888) | (231,265) | (1,713,862) | (623,498) |
Gain on sale of equipment | 30,136 | 58,311 | 47,073 | 418,103 |
Other nonoperating income (expense), Total | (682,090) | (347,911) | (1,830,118) | (643,014) |
Income before income taxes | 4,913,288 | 2,248,639 | 2,448,290 | 3,077,894 |
Income tax expense | 1,497,742 | 651,396 | 767,970 | 945,216 |
Net income | $ 3,415,546 | $ 1,597,243 | $ 1,680,320 | $ 2,132,678 |
Weighted average shares outstanding-basic | 16,602,556 | 16,449,829 | 16,659,169 | 16,270,499 |
Weighted average shares-diluted | 16,602,556 | 16,449,829 | 16,659,169 | 16,270,499 |
Earnings per share-basic | $ 0.21 | $ 0.10 | $ 0.10 | $ 0.13 |
Earnings per share-diluted | $ 0.21 | $ 0.10 | $ 0.10 | $ 0.13 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 9 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Cash flows from operating activities: | ||
Net income | $ 1,680,320 | $ 2,132,678 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Accreted interest on PPP Loans | 74,613 | 74,613 |
Depreciation expense | 5,356,166 | 4,006,663 |
Gain on sale of equipment | (47,073) | (418,103) |
Provision for deferred taxes | 699,932 | 845,216 |
Accreted interest on notes payable | 31,200 | 27,326 |
Increase in accounts receivable | (9,369,616) | (3,086,194) |
Increase in retainage receivable | (2,881,285) | (2,221,588) |
(Increase) decrease in other receivables | (556,165) | 489,771 |
Decrease (increase) in contract assets | 3,910,675 | (3,206,678) |
Decrease in prepaid expenses and other | 2,907,881 | 2,424,047 |
(Decrease) increase in accounts payable | (1,480,418) | 4,050,532 |
(Decrease) increase in accrued expenses and other current liabilities | (969,652) | 2,229,419 |
Increase in contract liabilities | 10,548,603 | 2,961,585 |
Net cash provided by operating activities | 10,306,402 | 10,616,985 |
Cash flows from investing activities: | ||
Investment in property and equipment | (8,498,746) | (4,671,687) |
Proceeds from sales of property and equipment | 546,672 | 643,603 |
Net cash used in investing activities | (7,952,074) | (4,028,084) |
Cash flows from financing activities: | ||
Preferred stock redemption | (1,210,525) | |
Dividends on common stock | (833,360) | |
Treasury stock purchased | (219,615) | |
Borrowings on lines of credit and short-term debt, net of (repayments) | 1,197,792 | (4,884,880) |
Proceeds from long-term debt | 3,100,000 | |
Principal payments on long-term debt | (3,988,057) | (3,324,838) |
Net cash used in financing activities | (743,240) | (9,420,243) |
Increase (decrease) in cash and cash equivalents | 1,611,088 | (2,831,342) |
Cash and cash equivalents beginning of period | 7,427,474 | 8,226,739 |
Cash and cash equivalents end of period | 9,038,562 | 5,395,397 |
Supplemental schedule of noncash investing and financing activities: | ||
Purchases of property & equipment under financing agreements | 892,735 | 461,784 |
Prepaid insurance premiums financed | 3,811,644 | 3,352,971 |
Debt assumed in acquisitions for equipment | 390,445 | |
Sellers' note Tri-State Paving acquisition | 936,000 | |
Note payable to finance Tri-State Paving acquisition | 7,500,000 | |
Common stock issued to finance Tri-State Paving acquisition | 1,048,218 | |
Par value of common stock issued from preferred stock conversion | 263 | |
Operating lease right-of-use assets acquired in exchange for operating lease liabilities | 2,618,530 | 365,379 |
Cash paid during the year for: | ||
Interest | $ 1,636,404 | 548,885 |
Income taxes | $ 6,706 |
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 | $ (36,019,788) | $ (122) | $ 24,652,273 |
Balance at the beginning (in shares) at Sep. 30, 2021 | 13,621,406 | ||||
Increase (Decrease) in Stockholders' Equity | |||||
Net income (loss) | 1,145,836 | 1,145,836 | |||
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 | (34,873,952) | (122) | 24,587,847 |
Balance at the end (in shares) at Dec. 31, 2021 | 16,247,898 | ||||
Balance at the beginning at Sep. 30, 2021 | $ 1,484 | 60,670,699 | (36,019,788) | (122) | 24,652,273 |
Balance at the beginning (in shares) at Sep. 30, 2021 | 13,621,406 | ||||
Increase (Decrease) in Stockholders' Equity | |||||
Net income (loss) | 2,132,678 | ||||
Balance at the end at Jun. 30, 2022 | $ 1,789 | 60,508,350 | (33,887,110) | (122) | 26,622,907 |
Balance at the end (in shares) at Jun. 30, 2022 | 16,667,185 | ||||
Balance at the beginning at Dec. 31, 2021 | $ 1,747 | 59,460,174 | (34,873,952) | (122) | 24,587,847 |
Balance at the beginning (in shares) at Dec. 31, 2021 | 16,247,898 | ||||
Increase (Decrease) in Stockholders' Equity | |||||
Net income (loss) | (610,401) | (610,401) | |||
Balance at the end at Mar. 31, 2022 | $ 1,747 | 59,460,174 | (35,484,353) | (122) | 23,977,446 |
Balance at the end (in shares) at Mar. 31, 2022 | 16,247,898 | ||||
Increase (Decrease) in Stockholders' Equity | |||||
Net income (loss) | 1,597,243 | 1,597,243 | |||
Shares issued for Tri-State Paving acquisition | $ 42 | 1,048,176 | 1,048,218 | ||
Shares issued for Tri-State Paving acquisition (in shares) | 419,287 | ||||
Balance at the end at Jun. 30, 2022 | $ 1,789 | 60,508,350 | (33,887,110) | (122) | 26,622,907 |
Balance at the end (in shares) at Jun. 30, 2022 | 16,667,185 | ||||
Balance at the beginning at Sep. 30, 2022 | $ 1,789 | 60,508,350 | (32,269,473) | (122) | 28,240,544 |
Balance at the beginning (in shares) at Sep. 30, 2022 | 16,667,185 | ||||
Increase (Decrease) in Stockholders' Equity | |||||
Net income (loss) | 138,374 | 138,374 | |||
Balance at the end at Dec. 31, 2022 | $ 1,789 | 60,508,350 | (32,131,099) | (122) | 28,378,918 |
Balance at the end (in shares) at Dec. 31, 2022 | 16,667,185 | ||||
Balance at the beginning at Sep. 30, 2022 | $ 1,789 | 60,508,350 | (32,269,473) | (122) | 28,240,544 |
Balance at the beginning (in shares) at Sep. 30, 2022 | 16,667,185 | ||||
Increase (Decrease) in Stockholders' Equity | |||||
Net income (loss) | 1,680,320 | ||||
Balance at the end at Jun. 30, 2023 | $ 1,789 | 60,288,745 | (31,422,513) | (132) | 28,867,889 |
Balance at the end (in shares) at Jun. 30, 2023 | 16,567,185 | ||||
Balance at the beginning at Dec. 31, 2022 | $ 1,789 | 60,508,350 | (32,131,099) | (122) | 28,378,918 |
Balance at the beginning (in shares) at Dec. 31, 2022 | 16,667,185 | ||||
Increase (Decrease) in Stockholders' Equity | |||||
Net income (loss) | (1,873,600) | (1,873,600) | |||
Dividends on common stock ($0.05 per share on 16,667,185 shares) | (833,360) | (833,360) | |||
Treasury stock purchased by company | (71,652) | (3) | (71,655) | ||
Treasury stock purchased by company (in shares) | (32,181) | ||||
Balance at the end at Mar. 31, 2023 | $ 1,789 | 60,436,698 | (34,838,059) | (125) | 25,600,303 |
Balance at the end (in shares) at Mar. 31, 2023 | 16,635,004 | ||||
Increase (Decrease) in Stockholders' Equity | |||||
Net income (loss) | 3,415,546 | 3,415,546 | |||
Treasury stock purchased by company | (147,953) | (7) | (147,960) | ||
Treasury stock purchased by company (in shares) | (67,819) | ||||
Balance at the end at Jun. 30, 2023 | $ 1,789 | $ 60,288,745 | $ (31,422,513) | $ (132) | $ 28,867,889 |
Balance at the end (in shares) at Jun. 30, 2023 | 16,567,185 |
Consolidated Statements of Ch_2
Consolidated Statements of Changes in Shareholders Equity (Parentheticals) | 9 Months Ended |
Jun. 30, 2023 $ / shares shares | |
Consolidated Statements of Changes in Shareholders' Equity | |
Dividends on common stock (in dollars per share) | $ / shares | $ 0.05 |
Number of common shares | shares | 16,667,185 |
BUSINESS AND ORGANIZATION
BUSINESS AND ORGANIZATION | 9 Months Ended |
Jun. 30, 2023 | |
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. (“NCS”), a wholly owned subsidiary of C.J. Hughes, provides electrical, mechanical, HVAC/R, and fire protection services to customers primarily in the automotive, chemical, and power industries. Revolt Energy, LLC (“Revolt”), a wholly owned subsidiary of NCS, performs residential solar installation projects. Nitro Electric Company, LLC (“Nitro Electric”), a wholly owned subsidiary of NCS, performs industrial electrical work and is a satellite office registered in Michigan. Pinnacle Technical Solutions, Inc. (“Pinnacle”), a wholly owned subsidiary of NCS, operates as a data storage facility within Nitro’s office building. Pinnacle is supported by NCS and has no employees of its own. NCS and its subsidiaries will collectively be referred to “Nitro”. 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 of 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 of the Company’s union subsidiaries. Tri-State Paving & Sealcoating, Inc. The employees of TSP are non-union and are managed independently of 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 the assets of Ryan Environmental, LLC and Ryan Environmental Transport, LLC (collectively “Ryan Environmental”), 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 of 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 Amendment No. 1 to the Company’s Annual Report on Form 10-K/A filed with the SEC on May 31, 2023. 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 and nine months ended June 30, 2023 and 2022 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 | 9 Months Ended |
Jun. 30, 2023 | |
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 |
RESTATEMENT OF PREVIOUSLY ISSUE
RESTATEMENT OF PREVIOUSLY ISSUED FINANCIAL STATEMENTS | 9 Months Ended |
Jun. 30, 2023 | |
RESTATEMENT OF PREVIOUSLY ISSUED FINANCIAL STATEMENTS | |
RESTATEMENT OF PREVIOUSLY ISSUED FINANCIAL STATEMENTS | 3. RESTATEMENT OF PREVIOUSLY ISSUED FINANCIAL STATEMENTS On May 12, 2023, the audit committee of the Board of Directors of Energy Services, after considering the recommendation of management, concluded: that (a) the Company’s previously issued audited consolidated financial statements for the fiscal years ended September 30, 2022 and 2021 included in the Company’s annual reports on Form 10-K for the fiscal years ended September 30, 2022 and 2021, and (b) the Company’s unaudited consolidated financial statements for the periods ended June 30, 2021, December 31, 2021, March 31, 2022, June 30, 2022 and December 31, 2022 as reported in the Company’s quarterly reports on Form 10-Q for those periods (together, the “Reports”) should no longer be relied upon and have been restated. Due to the economic uncertainties created by COVID-19 and limited operating funds available, the Company applied for loans under the Paycheck Protection Program (“PPP”). On April 15, 2020, the Company and its subsidiaries, C.J. Hughes, Contractors Rental, and Nitro, entered into separate PPP notes effective April 7, 2020, with United Bank as the lender (“Lender”) in an aggregate principal amount of $13.1 million pursuant to the PPP (collectively, the “PPP Loans”). In a special meeting held on April 27, 2020, the Board of Directors of the Company unanimously voted to return $3.3 million of the PPP Loans after discussing the financing needs of the Company and subsidiaries. That left the Company and subsidiaries with $9.8 million in PPP Loans to fund operations. During fiscal year 2021, the Company received notice that the Small Business Administration (the “SBA”) had granted forgiveness of the $9.8 million of PPP Loans and the SBA repaid the Lender in full. The forgiveness was recorded as other income for the fiscal year ended September 30, 2021. During April 2023, management received notification from the SBA that one of the Company’s forgiveness applications related to the PPP Loans was under review. As part of the review, the SBA requested additional payroll information. Additionally, the SBA requested information regarding the ability of the Company’s affiliates to meet SBA size standards and/or PPP corporate maximum limits. The requested information was subsequently provided to the SBA through the Lender. The Company recognizes that there is a possibility that the SBA could reverse its previous determination on the forgiveness of the PPP Loans. As a result of this uncertainty, the Company restated the previously issued financial statements of the Company that were included in the Reports. The Company has recorded a short-term borrowing due to the SBA inquiry for the full $9.8 million, plus accrued interest for all periods presented. During July 2023, management received notification from the SBA that two additional forgiveness applications related to the PPP Loans were under review. As part of the review, the SBA requested information regarding the ability of the Company’s affiliates to meet SBA size standards and/or PPP corporate maximum limits. The requested information was subsequently provided to the SBA through the Lender. Tables for the income statement impact “As previously reported” and “restated” for Paycheck Protection Program loan forgiveness and interest expense for the three and nine months ended June 30, 2022 are below: Three Months Ended June 30, 2022 As Previously Reported Restated Change Interest expense $ 206,394 $ 231,265 $ 24,871 Net income 1,622,114 1,597,243 (24,871) Nine Months Ended June 30, 2022 As Previously Reported Restated Change Interest expense $ 548,885 $ 623,498 $ 74,613 Net income 2,207,291 2,132,678 (74,613) A table for the balance sheet impact “As previously reported” and “restated” for Paycheck Protection Program loan forgiveness and interest expense at September 30, 2022 is below: September 30, 2022 As Previously Reported Restated Change Lines of credit and short-term borrowings $ 13,080,320 $ 23,164,851 $ 10,084,531 Shareholders' equity 38,325,075 28,240,544 (10,084,531) |
REVENUE RECOGNITION
REVENUE RECOGNITION | 9 Months Ended |
Jun. 30, 2023 | |
REVENUE RECOGNITION | |
REVENUE RECOGNITION | 4. 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 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 | 9 Months Ended |
Jun. 30, 2023 | |
DISAGGREGATION OF REVENUE | |
DISAGGREGATION OF REVENUE | 5. 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 and nine months ended June 30, 2023 and 2022: Three Months Ended June 30, 2023 Electrical, Gas & Water Gas & Petroleum Mechanical, and Total revenue Distribution Transmission General from contracts Lump sum contracts $ — $ — $ 29,132,537 $ 29,132,537 Unit price contracts 17,906,005 28,488,329 1,568,962 47,963,296 Cost plus and T&M contracts — — 8,434,059 8,434,059 Total revenue from contracts $ 17,906,005 $ 28,488,329 $ 39,135,558 $ 85,529,892 Earned over time $ 7,738,419 $ 28,488,329 $ 35,991,934 $ 72,218,682 Earned at point in time 10,167,586 — 3,143,624 13,311,210 Total revenue from contracts $ 17,906,005 $ 28,488,329 $ 39,135,558 $ 85,529,892 Three Months Ended June 30, 2022 Electrical, Gas &Water Gas & Petroleum Mechanical, and Total revenue Distribution Transmission General from contracts Lump sum contracts $ — $ — $ 13,033,786 $ 13,033,786 Unit price contracts 13,667,005 15,443,917 — 29,110,922 Cost plus and T&M contracts — — 9,027,231 9,027,231 Total revenue from contracts $ 13,667,005 $ 15,443,917 $ 22,061,017 $ 51,171,939 Earned over time $ 3,315,407 $ 15,443,917 $ 21,269,782 $ 40,029,106 Earned at point in time 10,351,598 — 791,235 11,142,833 Total revenue from contracts $ 13,667,005 $ 15,443,917 $ 22,061,017 $ 51,171,939 Nine Months Ended June 30, 2023 Electrical, Gas & Water Gas & Petroleum Mechanical, and Total revenue Distribution Transmission General from contracts Lump sum contracts $ — $ — $ 68,633,633 $ 68,633,633 Unit price contracts 43,825,957 50,718,004 4,368,041 98,912,002 Cost plus and T&M contracts — — 31,700,285 31,700,285 Total revenue from contracts $ 43,825,957 $ 50,718,004 $ 104,701,959 $ 199,245,920 Earned over time $ 21,328,177 $ 50,718,004 $ 97,618,445 $ 169,664,626 Earned at point in time 22,497,780 — 7,083,514 29,581,294 Total revenue from contracts $ 43,825,957 $ 50,718,004 $ 104,701,959 $ 199,245,920 Nine Months Ended June 30, 2022 Electrical, Gas & Water Gas & Petroleum Mechanical, and Total revenue Distribution Transmission General from contracts Lump sum contracts $ — $ — $ 32,918,955 $ 32,918,955 Unit price contracts 36,282,234 35,217,113 — 71,499,347 Cost plus and T&M contracts — — 24,805,340 24,805,340 Total revenue from contracts $ 36,282,234 $ 35,217,113 $ 57,724,295 $ 129,223,642 Earned over time $ 17,263,257 $ 35,217,113 $ 55,768,374 $ 108,248,744 Earned at point in time 19,018,977 — 1,955,921 20,974,898 Total revenue from contracts $ 36,282,234 $ 35,217,113 $ 57,724,295 $ 129,223,642 |
CONTRACT BALANCES
CONTRACT BALANCES | 9 Months Ended |
Jun. 30, 2023 | |
CONTRACT BALANCES | |
CONTRACT BALANCES | 6. 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 and nine months ended June 30, 2023, we recognized revenue of $100,000 and $5.7 million, respectively, 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: June 30, 2023 September 30, 2022 Change Accounts receivable-trade, net of allowance for doubtful accounts $ 47,824,529 $ 38,454,913 $ 9,369,616 Contract assets Cost and estimated earnings in excess of billings $ 12,198,918 $ 16,109,593 $ (3,910,675) Contract liabilities Billings in excess of cost and estimated earnings $ 16,576,181 $ 6,027,578 $ 10,548,603 |
PERFORMANCE OBLIGATIONS
PERFORMANCE OBLIGATIONS | 9 Months Ended |
Jun. 30, 2023 | |
PERFORMANCE OBLIGATIONS | |
PERFORMANCE OBLIGATIONS | 7. PERFORMANCE OBLIGATIONS For the three and nine months ended June 30, 2023, 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 June 30, 2023, the Company had $157.0 million in remaining unsatisfied performance obligations, in which revenue is expected to be recognized over the next twelve months. |
UNCOMPLETED CONTRACTS
UNCOMPLETED CONTRACTS | 9 Months Ended |
Jun. 30, 2023 | |
UNCOMPLETED CONTRACTS | |
UNCOMPLETED CONTRACTS | 8. UNCOMPLETED CONTRACTS Costs, estimated earnings, and billings on uncompleted contracts as of June 30, 2023 and September 30, 2022, are summarized as follows: June 30, 2023 September 30, 2022 Costs incurred on contracts in progress $ 165,370,815 $ 192,957,145 Estimated earnings, net of estimated losses 19,220,491 28,150,060 184,591,306 221,107,205 Less billings to date 188,968,569 211,025,190 $ (4,377,263) $ 10,082,015 Costs and estimated earnings in excess of billed on uncompleted contracts $ 12,198,918 $ 16,109,593 Less billings in excess of costs and estimated earnings on uncompleted contracts 16,576,181 6,027,578 $ (4,377,263) $ 10,082,015 Backlog at June 30, 2023 and September 30, 2022, was $185.9 million and $142.3 million, respectively. |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 9 Months Ended |
Jun. 30, 2023 | |
FAIR VALUE MEASUREMENTS | |
FAIR VALUE MEASUREMENTS | 9. 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 $27.2 million at June 30, 2023 was $25.3 million. The fair value of the aggregate principal amount of the Company’s fixed-rate debt of $25.1 million, as restated, at September 30, 2022 was $24.3 million, as restated. All other current assets and liabilities are carried at a net realizable value which approximates fair value because of their short duration to maturity. |
EARNINGS PER SHARE
EARNINGS PER SHARE | 9 Months Ended |
Jun. 30, 2023 | |
EARNINGS PER SHARE | |
EARNINGS PER SHARE | 10. EARNINGS PER SHARE The amounts used to compute the earnings per share for the three and nine months ended June 30, 2023 and 2022 are summarized below. As Restated As Restated Three Months Ended Three Months Ended Nine Months Ended Nine Months Ended June 30, June 30, June 30, June 30, 2023 2022 2023 2022 Net income, as restated $ 3,415,546 $ 1,597,243 $ 1,680,320 $ 2,132,678 Weighted average shares outstanding-basic 16,602,556 16,449,829 16,659,169 16,270,499 Weighted average shares-diluted 16,602,556 16,449,829 16,659,169 16,270,499 Earnings per share-basic $ 0.21 $ 0.10 $ 0.10 $ 0.13 Earnings per share-diluted $ 0.21 $ 0.10 $ 0.10 $ 0.13 |
INCOME TAXES
INCOME TAXES | 9 Months Ended |
Jun. 30, 2023 | |
INCOME TAXES | |
INCOME TAXES | 11. INCOME TAXES The components of income taxes are as follows: The effective income tax rate for the three and nine months ended June 30, 2023 was 30.5% and 31.4%, respectively, as compared to 29.0% as restated, and 30.7%, as restated, for the same periods in fiscal year 2022. 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 state taxes, amortization of goodwill, and non-deductible amounts for per diem expenses. Three Months Ended June 30, 2023 June 30, 2022 Federal Current $ 68,038 $ 100,000 Deferred 1,104,844 408,087 Total 1,172,882 508,087 State Current — — Deferred 324,860 143,309 Total 324,860 143,309 Total income tax expense $ 1,497,742 $ 651,396 Nine Months Ended June 30, 2023 June 30, 2022 Federal Current $ 68,038 $ 100,000 Deferred 542,938 637,268 Total 610,976 737,268 State Current — — Deferred 156,994 207,948 Total 156,994 207,948 Total income tax expense $ 767,970 $ 945,216 The income tax effects of temporary differences giving rise to the deferred tax assets and liabilities are as follows: June 30, September 30, 2023 2022 Deferred tax liabilities Property and equipment $ 7,940,727 $ 7,686,064 Other 564,978 7,632 Total deferred tax liabilities $ 8,505,705 $ 7,693,696 Deferred income tax assets Other $ 879,717 $ 404,093 Net operating loss carryforward 2,470,977 2,834,524 Total deferred tax assets $ 3,350,694 $ 3,238,617 Total net deferred tax liabilities $ 5,155,011 $ 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 June 30, 2023, 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 | 9 Months Ended |
Jun. 30, 2023 | |
SHORT-TERM AND LONG-TERM DEBT | |
SHORT-TERM AND LONG-TERM DEBT | 12. SHORT-TERM AND LONG-TERM DEBT Operating Line of Credit 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 On January 19, 2023, the Company received an amendment to the agreement which increased the line of credit to $30.0 million with a maturity date of June 28, 2023. On June 1, 2023, the agreement was renewed through June 28, 2024. The line of credit is limited to a borrowing base calculation, which was approximately $24.4 million at June 30, 2023. The outstanding balance on the line of credit was $16.2 million at June 30, 2023. The line of credit has a variable interest rate equal to the “Wall Street Journal” The modified financial covenants for the quarter ended June 30, 2023, 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 June 30, 2023, ● The Company 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 the Company, other than subordinated debt. The covenant shall be tested quarterly, at the end of each fiscal quarter, with EBITDA based on the preceding four quarters. The Company was not in compliance with all covenants at June 30, 2023; however, a waiver was received from the Company’s lender. The Company projects to meet all covenant requirements for the next twelve months. Insurance Premiums Financed 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 June 30, 2023 and September 30, 2022, the remaining balance of the insurance premiums was $1.9 million and $580,000, respectively. Paycheck Protection Program Loans Due to the economic uncertainties created by COVID-19 and limited operating funds available, the Company applied for loans under the PPP. On April 15, 2020, the Company and its subsidiaries, C.J. Hughes, Contractors Rental and Nitro, entered into separate PPP notes effective April 7, 2020, with its Lender in an aggregate principal amount of $13.1 million pursuant to the PPP Loans. In a special meeting held on April 27, 2020, the Board of Directors of the Company unanimously voted to return $3.3 million of the PPP Loans after discussing the financing needs of the Company and subsidiaries. That left the Company and subsidiaries with $9.8 million in PPP Loans to fund operations. During fiscal year 2021, the Company received notice that the SBA had granted forgiveness of the $9.8 million of PPP Loans and the SBA repaid the Lender in full. The forgiveness was recorded as other income for the fiscal year ended September 30, 2021. During April 2023, management received notification from the SBA that one of the Company’s forgiveness applications related to the PPP Loans was under review. As part of the review, the SBA requested additional payroll information. Additionally, the SBA requested information regarding the ability of the Company’s affiliates to meet SBA size standards and/or PPP corporate maximum limits. The requested information was subsequently provided to the SBA through the Lender. The Company recognizes that there is a possibility that the SBA could reverse its previous determination on the forgiveness of the PPP Loans. As a result of this uncertainty, the Company restated the previously issued financial statements of the Company that were included in the Reports. The Company has recorded a short-term borrowing due to the SBA inquiry for the full $9.8 million, plus accrued interest for all periods presented. During July 2023, management received notification from the SBA that two additional forgiveness applications related to the PPP Loans were under review. As part of the review, the SBA requested information regarding the ability of the Company’s affiliates to meet SBA size standards and/or PPP corporate maximum limits. The requested information was subsequently provided to the SBA through the Lender. A summary of short-term and long-term debt as of June 30, 2023 and September 30, 2022 is as follows: As Restated June 30, September 30, 2023 2022 Line of credit payable to bank, monthly interest at 9.25%, final payment due by June 28, 2024, guaranteed by certain directors of the Company. $ 16,200,000 $ 12,500,000 Equipment line of credit payable to United Bank, $9.3 million available with no borrowings at June 30, 2023. All borrowings between June 1, 2023 and December 1, 2023 have a fixed interest rate of 7.25% . After December 1, 2023, the line of credit turns into a fifty-four-month term note with a fixed interest rate of 7.25% , final payment due June 1, 2028. — — Paycheck Protection Program loans from Small Business Administration, 1.0% simple interest, initially forgiven in the fiscal year ended September 30, 2021. Final forgiveness decision has not been determined. 10,159,144 10,084,531 Term note payable to United Bank, WV Pipeline acquisition, due in monthly installments of $64,853, including interest at 4.25%, final payment due by March 25, 2026, secured by receivables and equipment, guaranteed by certain directors of the Company. 1,963,324 2,529,421 Notes payable to finance companies, due in monthly installments totaling 1,324,858 889,165 Note payable to finance company for insurance premiums financed, due in monthly installments totaling 1,889,756 580,320 Notes payable to bank, due in monthly installments totaling 827,019 867,383 Notes payable to bank, due in monthly installments totaling 324,941 412,917 Notes payable to bank, due in monthly installments totaling 2,739,910 — Notes payable to David Bolton and Daniel Bolton, due in annual installments totaling $500,000, including interest at 3.25%, final payment due December 31, 2026, unsecured 1,652,500 2,380,000 Notes payable to bank, interest at 4.25% of outstanding balance due in monthly installments between January 2021 and January 2022. Note payments due in monthly installments totaling $68,150, including interest at 9.25%, with final payment due September 2026, secured by equipment, guaranteed by certain directors of the Company. 2,030,636 2,549,281 Term note payable to United Bank, Tri-State Paving acquisition, due in monthly installments of $129,910, including interest at 4.25%, final payment due by June 1, 2027, secured by receivables and equipment, guaranteed by certain directors of the Company. 6,024,254 6,982,097 Notes payable to Corns Enterprises, $1,000,000 with fair value of $936,000, due in annual installments totaling $250,000, including interest at 3.50%, final payment due April 29, 2026, unsecured 702,536 943,836 Total debt $ 45,838,878 $ 40,718,951 Less current maturities 33,107,695 27,224,867 Total long term debt $ 12,731,183 $ 13,494,084 |
GOODWILL AND INTANGIBLE ASSETS
GOODWILL AND INTANGIBLE ASSETS | 9 Months Ended |
Jun. 30, 2023 | |
GOODWILL AND INTANGIBLE ASSETS | |
GOODWILL AND INTANGIBLE ASSETS | 13. 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: June 30, September 30, 2023 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 June 30, 2023 and September 30, 2022 is below: Amortization Amortization Accumulated Accumulated and Impairment and Impairment Remaining Life Amortization and Amortization and Three Months Nine Months (in months) at Impairment at Impairment at Ended June 30, Ended June 30, Net Book Value Intangible assets: June 30, 2023 Original Cost June 30, 2023 September 30, 2022 2023 2023 at June 30, 2023 West Virginia Pipeline: Customer Relationships 90 $ 2,209,724 $ 573,225 $ 386,693 $ 65,643 $ 186,532 $ 1,636,499 Tradename 90 263,584 65,909 46,136 6,591 19,773 197,675 Non-competes — 83,203 83,203 72,806 — 10,397 — Revolt Energy: Employment agreement/non-compete — 100,000 100,000 77,779 13,887 22,221 — Tri-State Paving: Customer Relationships 106 1,649,159 190,468 66,781 41,229 123,687 1,458,691 Tradename 106 203,213 23,609 8,368 5,080 15,241 179,604 Non-competes — 39,960 39,960 16,590 3,390 23,370 — Total intangible assets $ 4,548,843 $ 1,076,374 $ 675,153 $ 135,820 $ 401,221 $ 3,472,469 The amortization on identifiable intangible assets for the three and nine months ended June 30, 2023 was $136,000 and $401,000, respectively. The amortization on identifiable intangible assets for the three and nine months ended June 30, 2022 was $112,000 and $308,000, respectively. Amortization expense associated with the identifiable intangible assets is expected to be as follows: Amortization Expense July 2023 to June 2024 $ 430,008 July 2024 to June 2025 430,008 July 2025 to June 2026 430,008 July 2026 to June 2027 430,008 July 2027 to June 2028 430,008 After 1,322,429 Total $ 3,472,469 |
LEASE OBLIGATIONS (Imported)
LEASE OBLIGATIONS (Imported) | 9 Months Ended |
Jun. 30, 2023 | |
LEASE OBLIGATIONS | |
LEASE OBLIGATIONS | 14. 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, West Virginia facility, had a net present value of $236,000 at inception, and a carrying value of $148,000 at June 30, 2023. The second operating lease, for the Chattanooga, Tennessee facility, had a net present value of $144,000 at inception, and a carrying value of $72,000 at June 30, 2023. 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 thirty-one vehicles with a net present value of $1.2 million. The Company has subsequently added twenty-six leased vehicles with a net present value of $2.4 million. The right-of-use operating lease has a carrying value of $3.2 million at June 30, 2023. 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, West Virginia facility, had a net present value of $140,000 at inception and a carrying value of $21,000 at June 30, 2023. 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 acquired on March 28, 2023. This lease, for the Winchester, Kentucky facility, had a net present value of $290,000 at inception and a carrying value of $247,000 at June 30, 2023. The 7.75% 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 June 30, 2023 can be found below: Remaining liability Years left June 30, 2023 September 30, 2022 Lease end Fiscal year end Operating lease 1 1.8 $ 148,107 $ 205,267 4/30/2025 2025 Operating lease 2 0.9 72,334 119,032 5/31/2024 2024 Operating lease 3 3.5 3,156,145 1,166,498 8/10/2026 2027 Operating lease 4 0.3 21,214 113,480 8/11/2023 2023 Operating lease 5 2.6 247,476 — 3/31/2026 2026 $ 3,645,276 $ 1,604,277 Weighted average remaining term 3.3 years Operating Lease Maturity Schedule July 2023 to June 2024 $ 1,234,784 July 2024 to June 2025 1,140,516 July 2025 to June 2026 1,016,679 July 2026 to June 2027 545,026 3,937,005 Less amounts representing interest (291,729) Present value of operating lease liabilities $ 3,645,276 Three Months Ended Nine Months Ended Three Months Ended Nine Months Ended Operating Lease Expense June 30, 2023 June 30, 2023 June 30, 2022 June 30, 2022 Amortization Operating lease 1 $ 19,267 $ 57,160 $ 12,305 $ 12,305 Operating lease 2 15,741 46,698 5,072 5,072 Operating lease 3 160,836 338,521 — — Operating lease 4 30,947 92,266 — — Operating lease 5 35,880 42,886 — — Total amortization 262,671 577,531 17,377 17,377 Interest Operating lease 1 1,733 5,840 1,695 1,695 Operating lease 2 870 3,135 465 465 Operating lease 3 27,240 59,452 — — Operating lease 4 703 2,684 — — Operating lease 5 5,016 6,776 — — Total interest 35,562 77,887 2,160 2,160 Total amortization and interest $ 298,233 $ 655,418 $ 19,537 $ 19,537 Three Months Ended Nine Months Ended Three Months Ended Nine Months Ended Cash Paid for Operating Leases June 30, 2023 June 30, 2023 June 30, 2022 June 30, 2022 Operating lease 1 $ 21,000 $ 63,000 $ 14,000 $ 14,000 Operating lease 2 16,611 49,833 5,537 5,537 Operating lease 3 185,942 397,973 — — Operating lease 4 42,180 94,950 — — Operating lease 5 32,500 49,662 — — $ 298,233 $ 655,418 $ 19,537 $ 19,537 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 $2.5 million and $1.7 million, respectively, for the three months ended June 30, 2023 and 2022 and $6.8 million and $5.3 million, respectively, for the nine months ended June 30, 2023 and 2022. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 9 Months Ended |
Jun. 30, 2023 | |
SUBSEQUENT EVENTS | |
SUBSEQUENT EVENTS | 15. SUBSEQUENT EVENTS 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) | 9 Months Ended |
Jun. 30, 2023 | |
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 Amendment No. 1 to the Company’s Annual Report on Form 10-K/A filed with the SEC on May 31, 2023. 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 and nine months ended June 30, 2023 and 2022 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. |
RESTATEMENT OF PREVIOUSLY ISS_2
RESTATEMENT OF PREVIOUSLY ISSUED FINANCIAL STATEMENTS (Tables) | 9 Months Ended |
Jun. 30, 2023 | |
RESTATEMENT OF PREVIOUSLY ISSUED FINANCIAL STATEMENTS | |
Schedule of Interest expense and lines of credit and short-term borrowings | Tables for the income statement impact “As previously reported” and “restated” for Paycheck Protection Program loan forgiveness and interest expense for the three and nine months ended June 30, 2022 are below: Three Months Ended June 30, 2022 As Previously Reported Restated Change Interest expense $ 206,394 $ 231,265 $ 24,871 Net income 1,622,114 1,597,243 (24,871) Nine Months Ended June 30, 2022 As Previously Reported Restated Change Interest expense $ 548,885 $ 623,498 $ 74,613 Net income 2,207,291 2,132,678 (74,613) A table for the balance sheet impact “As previously reported” and “restated” for Paycheck Protection Program loan forgiveness and interest expense at September 30, 2022 is below: September 30, 2022 As Previously Reported Restated Change Lines of credit and short-term borrowings $ 13,080,320 $ 23,164,851 $ 10,084,531 Shareholders' equity 38,325,075 28,240,544 (10,084,531) |
DISAGGREGATION OF REVENUE (Tabl
DISAGGREGATION OF REVENUE (Tables) | 9 Months Ended |
Jun. 30, 2023 | |
DISAGGREGATION OF REVENUE | |
Schedule of disaggregation of revenue | Three Months Ended June 30, 2023 Electrical, Gas & Water Gas & Petroleum Mechanical, and Total revenue Distribution Transmission General from contracts Lump sum contracts $ — $ — $ 29,132,537 $ 29,132,537 Unit price contracts 17,906,005 28,488,329 1,568,962 47,963,296 Cost plus and T&M contracts — — 8,434,059 8,434,059 Total revenue from contracts $ 17,906,005 $ 28,488,329 $ 39,135,558 $ 85,529,892 Earned over time $ 7,738,419 $ 28,488,329 $ 35,991,934 $ 72,218,682 Earned at point in time 10,167,586 — 3,143,624 13,311,210 Total revenue from contracts $ 17,906,005 $ 28,488,329 $ 39,135,558 $ 85,529,892 Three Months Ended June 30, 2022 Electrical, Gas &Water Gas & Petroleum Mechanical, and Total revenue Distribution Transmission General from contracts Lump sum contracts $ — $ — $ 13,033,786 $ 13,033,786 Unit price contracts 13,667,005 15,443,917 — 29,110,922 Cost plus and T&M contracts — — 9,027,231 9,027,231 Total revenue from contracts $ 13,667,005 $ 15,443,917 $ 22,061,017 $ 51,171,939 Earned over time $ 3,315,407 $ 15,443,917 $ 21,269,782 $ 40,029,106 Earned at point in time 10,351,598 — 791,235 11,142,833 Total revenue from contracts $ 13,667,005 $ 15,443,917 $ 22,061,017 $ 51,171,939 Nine Months Ended June 30, 2023 Electrical, Gas & Water Gas & Petroleum Mechanical, and Total revenue Distribution Transmission General from contracts Lump sum contracts $ — $ — $ 68,633,633 $ 68,633,633 Unit price contracts 43,825,957 50,718,004 4,368,041 98,912,002 Cost plus and T&M contracts — — 31,700,285 31,700,285 Total revenue from contracts $ 43,825,957 $ 50,718,004 $ 104,701,959 $ 199,245,920 Earned over time $ 21,328,177 $ 50,718,004 $ 97,618,445 $ 169,664,626 Earned at point in time 22,497,780 — 7,083,514 29,581,294 Total revenue from contracts $ 43,825,957 $ 50,718,004 $ 104,701,959 $ 199,245,920 Nine Months Ended June 30, 2022 Electrical, Gas & Water Gas & Petroleum Mechanical, and Total revenue Distribution Transmission General from contracts Lump sum contracts $ — $ — $ 32,918,955 $ 32,918,955 Unit price contracts 36,282,234 35,217,113 — 71,499,347 Cost plus and T&M contracts — — 24,805,340 24,805,340 Total revenue from contracts $ 36,282,234 $ 35,217,113 $ 57,724,295 $ 129,223,642 Earned over time $ 17,263,257 $ 35,217,113 $ 55,768,374 $ 108,248,744 Earned at point in time 19,018,977 — 1,955,921 20,974,898 Total revenue from contracts $ 36,282,234 $ 35,217,113 $ 57,724,295 $ 129,223,642 |
CONTRACT BALANCES (Tables)
CONTRACT BALANCES (Tables) | 9 Months Ended |
Jun. 30, 2023 | |
CONTRACT BALANCES | |
Schedule of accounts receivable-trade, net of allowance for doubtful accounts, contract assets and contract liabilities | June 30, 2023 September 30, 2022 Change Accounts receivable-trade, net of allowance for doubtful accounts $ 47,824,529 $ 38,454,913 $ 9,369,616 Contract assets Cost and estimated earnings in excess of billings $ 12,198,918 $ 16,109,593 $ (3,910,675) Contract liabilities Billings in excess of cost and estimated earnings $ 16,576,181 $ 6,027,578 $ 10,548,603 |
UNCOMPLETED CONTRACTS (Tables)
UNCOMPLETED CONTRACTS (Tables) | 9 Months Ended |
Jun. 30, 2023 | |
UNCOMPLETED CONTRACTS | |
Schedule of costs, estimated earnings and billings on uncompleted contracts | June 30, 2023 September 30, 2022 Costs incurred on contracts in progress $ 165,370,815 $ 192,957,145 Estimated earnings, net of estimated losses 19,220,491 28,150,060 184,591,306 221,107,205 Less billings to date 188,968,569 211,025,190 $ (4,377,263) $ 10,082,015 Costs and estimated earnings in excess of billed on uncompleted contracts $ 12,198,918 $ 16,109,593 Less billings in excess of costs and estimated earnings on uncompleted contracts 16,576,181 6,027,578 $ (4,377,263) $ 10,082,015 |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 9 Months Ended |
Jun. 30, 2023 | |
EARNINGS PER SHARE | |
Schedule to compute the earnings per share | As Restated As Restated Three Months Ended Three Months Ended Nine Months Ended Nine Months Ended June 30, June 30, June 30, June 30, 2023 2022 2023 2022 Net income, as restated $ 3,415,546 $ 1,597,243 $ 1,680,320 $ 2,132,678 Weighted average shares outstanding-basic 16,602,556 16,449,829 16,659,169 16,270,499 Weighted average shares-diluted 16,602,556 16,449,829 16,659,169 16,270,499 Earnings per share-basic $ 0.21 $ 0.10 $ 0.10 $ 0.13 Earnings per share-diluted $ 0.21 $ 0.10 $ 0.10 $ 0.13 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 9 Months Ended |
Jun. 30, 2023 | |
INCOME TAXES | |
Schedule of components of income taxes | Three Months Ended June 30, 2023 June 30, 2022 Federal Current $ 68,038 $ 100,000 Deferred 1,104,844 408,087 Total 1,172,882 508,087 State Current — — Deferred 324,860 143,309 Total 324,860 143,309 Total income tax expense $ 1,497,742 $ 651,396 Nine Months Ended June 30, 2023 June 30, 2022 Federal Current $ 68,038 $ 100,000 Deferred 542,938 637,268 Total 610,976 737,268 State Current — — Deferred 156,994 207,948 Total 156,994 207,948 Total income tax expense $ 767,970 $ 945,216 |
Schedule of income tax effects to deferred tax assets and liabilities | June 30, September 30, 2023 2022 Deferred tax liabilities Property and equipment $ 7,940,727 $ 7,686,064 Other 564,978 7,632 Total deferred tax liabilities $ 8,505,705 $ 7,693,696 Deferred income tax assets Other $ 879,717 $ 404,093 Net operating loss carryforward 2,470,977 2,834,524 Total deferred tax assets $ 3,350,694 $ 3,238,617 Total net deferred tax liabilities $ 5,155,011 $ 4,455,079 |
SHORT-TERM AND LONG-TERM DEBT (
SHORT-TERM AND LONG-TERM DEBT (Tables) | 9 Months Ended |
Jun. 30, 2023 | |
SHORT-TERM AND LONG-TERM DEBT | |
Schedule of short-term and long-term debt | As Restated June 30, September 30, 2023 2022 Line of credit payable to bank, monthly interest at 9.25%, final payment due by June 28, 2024, guaranteed by certain directors of the Company. $ 16,200,000 $ 12,500,000 Equipment line of credit payable to United Bank, $9.3 million available with no borrowings at June 30, 2023. All borrowings between June 1, 2023 and December 1, 2023 have a fixed interest rate of 7.25% . After December 1, 2023, the line of credit turns into a fifty-four-month term note with a fixed interest rate of 7.25% , final payment due June 1, 2028. — — Paycheck Protection Program loans from Small Business Administration, 1.0% simple interest, initially forgiven in the fiscal year ended September 30, 2021. Final forgiveness decision has not been determined. 10,159,144 10,084,531 Term note payable to United Bank, WV Pipeline acquisition, due in monthly installments of $64,853, including interest at 4.25%, final payment due by March 25, 2026, secured by receivables and equipment, guaranteed by certain directors of the Company. 1,963,324 2,529,421 Notes payable to finance companies, due in monthly installments totaling 1,324,858 889,165 Note payable to finance company for insurance premiums financed, due in monthly installments totaling 1,889,756 580,320 Notes payable to bank, due in monthly installments totaling 827,019 867,383 Notes payable to bank, due in monthly installments totaling 324,941 412,917 Notes payable to bank, due in monthly installments totaling 2,739,910 — Notes payable to David Bolton and Daniel Bolton, due in annual installments totaling $500,000, including interest at 3.25%, final payment due December 31, 2026, unsecured 1,652,500 2,380,000 Notes payable to bank, interest at 4.25% of outstanding balance due in monthly installments between January 2021 and January 2022. Note payments due in monthly installments totaling $68,150, including interest at 9.25%, with final payment due September 2026, secured by equipment, guaranteed by certain directors of the Company. 2,030,636 2,549,281 Term note payable to United Bank, Tri-State Paving acquisition, due in monthly installments of $129,910, including interest at 4.25%, final payment due by June 1, 2027, secured by receivables and equipment, guaranteed by certain directors of the Company. 6,024,254 6,982,097 Notes payable to Corns Enterprises, $1,000,000 with fair value of $936,000, due in annual installments totaling $250,000, including interest at 3.50%, final payment due April 29, 2026, unsecured 702,536 943,836 Total debt $ 45,838,878 $ 40,718,951 Less current maturities 33,107,695 27,224,867 Total long term debt $ 12,731,183 $ 13,494,084 |
GOODWILL AND INTANGIBLE ASSETS
GOODWILL AND INTANGIBLE ASSETS (Tables) | 9 Months Ended |
Jun. 30, 2023 | |
GOODWILL AND INTANGIBLE ASSETS | |
Summary of changes in goodwill | June 30, September 30, 2023 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 June 30, 2023 and September 30, 2022 is below: Amortization Amortization Accumulated Accumulated and Impairment and Impairment Remaining Life Amortization and Amortization and Three Months Nine Months (in months) at Impairment at Impairment at Ended June 30, Ended June 30, Net Book Value Intangible assets: June 30, 2023 Original Cost June 30, 2023 September 30, 2022 2023 2023 at June 30, 2023 West Virginia Pipeline: Customer Relationships 90 $ 2,209,724 $ 573,225 $ 386,693 $ 65,643 $ 186,532 $ 1,636,499 Tradename 90 263,584 65,909 46,136 6,591 19,773 197,675 Non-competes — 83,203 83,203 72,806 — 10,397 — Revolt Energy: Employment agreement/non-compete — 100,000 100,000 77,779 13,887 22,221 — Tri-State Paving: Customer Relationships 106 1,649,159 190,468 66,781 41,229 123,687 1,458,691 Tradename 106 203,213 23,609 8,368 5,080 15,241 179,604 Non-competes — 39,960 39,960 16,590 3,390 23,370 — Total intangible assets $ 4,548,843 $ 1,076,374 $ 675,153 $ 135,820 $ 401,221 $ 3,472,469 |
Schedule of amortization on identifiable intangible assets | Amortization Expense July 2023 to June 2024 $ 430,008 July 2024 to June 2025 430,008 July 2025 to June 2026 430,008 July 2026 to June 2027 430,008 July 2027 to June 2028 430,008 After 1,322,429 Total $ 3,472,469 |
LEASE OBLIGATIONS (Tables)
LEASE OBLIGATIONS (Tables) | 9 Months Ended |
Jun. 30, 2023 | |
LEASE OBLIGATIONS | |
Schedule of information about operating leases | Remaining liability Years left June 30, 2023 September 30, 2022 Lease end Fiscal year end Operating lease 1 1.8 $ 148,107 $ 205,267 4/30/2025 2025 Operating lease 2 0.9 72,334 119,032 5/31/2024 2024 Operating lease 3 3.5 3,156,145 1,166,498 8/10/2026 2027 Operating lease 4 0.3 21,214 113,480 8/11/2023 2023 Operating lease 5 2.6 247,476 — 3/31/2026 2026 $ 3,645,276 $ 1,604,277 Weighted average remaining term 3.3 years Three Months Ended Nine Months Ended Three Months Ended Nine Months Ended Operating Lease Expense June 30, 2023 June 30, 2023 June 30, 2022 June 30, 2022 Amortization Operating lease 1 $ 19,267 $ 57,160 $ 12,305 $ 12,305 Operating lease 2 15,741 46,698 5,072 5,072 Operating lease 3 160,836 338,521 — — Operating lease 4 30,947 92,266 — — Operating lease 5 35,880 42,886 — — Total amortization 262,671 577,531 17,377 17,377 Interest Operating lease 1 1,733 5,840 1,695 1,695 Operating lease 2 870 3,135 465 465 Operating lease 3 27,240 59,452 — — Operating lease 4 703 2,684 — — Operating lease 5 5,016 6,776 — — Total interest 35,562 77,887 2,160 2,160 Total amortization and interest $ 298,233 $ 655,418 $ 19,537 $ 19,537 Three Months Ended Nine Months Ended Three Months Ended Nine Months Ended Cash Paid for Operating Leases June 30, 2023 June 30, 2023 June 30, 2022 June 30, 2022 Operating lease 1 $ 21,000 $ 63,000 $ 14,000 $ 14,000 Operating lease 2 16,611 49,833 5,537 5,537 Operating lease 3 185,942 397,973 — — Operating lease 4 42,180 94,950 — — Operating lease 5 32,500 49,662 — — $ 298,233 $ 655,418 $ 19,537 $ 19,537 |
Schedule of operating lease maturity schedule | Operating Lease Maturity Schedule July 2023 to June 2024 $ 1,234,784 July 2024 to June 2025 1,140,516 July 2025 to June 2026 1,016,679 July 2026 to June 2027 545,026 3,937,005 Less amounts representing interest (291,729) Present value of operating lease liabilities $ 3,645,276 |
RESTATEMENT OF PREVIOUSLY ISS_3
RESTATEMENT OF PREVIOUSLY ISSUED FINANCIAL STATEMENTS (Details) - PPP Loans - USD ($) $ in Millions | 1 Months Ended | 12 Months Ended | ||
Apr. 27, 2020 | Apr. 30, 2023 | Sep. 30, 2021 | Apr. 07, 2020 | |
RESTATEMENT OF PREVIOUSLY ISSUED FINANCIAL STATEMENTS | ||||
Lender aggregate principal amount | $ 13.1 | |||
Unanimously voted to return loans | $ 3.3 | |||
Amount of PPP loans to fund operations | 9.8 | |||
PPP loans received | $ 9.8 | $ 9.8 | ||
Short-term borrowings due to accrued interest | $ 9.8 |
RESTATEMENT OF PREVIOUSLY ISS_4
RESTATEMENT OF PREVIOUSLY ISSUED FINANCIAL STATEMENTS - Payroll Protection Program loan forgiveness and interest expense (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||||||
Jun. 30, 2023 | Mar. 31, 2023 | Dec. 31, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Jun. 30, 2023 | Jun. 30, 2022 | |
RESTATEMENT OF PREVIOUSLY ISSUED FINANCIAL STATEMENTS | ||||||||
Interest expense | $ 639,888 | $ 231,265 | $ 1,713,862 | $ 623,498 | ||||
Net income (loss) | $ 3,415,546 | $ (1,873,600) | $ 138,374 | 1,597,243 | $ (610,401) | $ 1,145,836 | $ 1,680,320 | 2,132,678 |
PPP Loans | ||||||||
RESTATEMENT OF PREVIOUSLY ISSUED FINANCIAL STATEMENTS | ||||||||
Interest expense | 24,871 | 74,613 | ||||||
Net income (loss) | (24,871) | (74,613) | ||||||
As Previously Reported | PPP Loans | ||||||||
RESTATEMENT OF PREVIOUSLY ISSUED FINANCIAL STATEMENTS | ||||||||
Interest expense | 206,394 | 548,885 | ||||||
Net income (loss) | 1,622,114 | 2,207,291 | ||||||
Restated | PPP Loans | ||||||||
RESTATEMENT OF PREVIOUSLY ISSUED FINANCIAL STATEMENTS | ||||||||
Interest expense | 231,265 | 623,498 | ||||||
Net income (loss) | $ 1,597,243 | $ 2,132,678 |
RESTATEMENT OF PREVIOUSLY ISS_5
RESTATEMENT OF PREVIOUSLY ISSUED FINANCIAL STATEMENTS - Lines of credit and short-term borrowings (Details) - USD ($) | Jun. 30, 2023 | Mar. 31, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2021 |
RESTATEMENT OF PREVIOUSLY ISSUED FINANCIAL STATEMENTS | ||||||||
Lines of credit and short-term borrowings | $ 28,248,900 | $ 23,164,851 | ||||||
Stockholders' equity | $ 28,867,889 | $ 25,600,303 | $ 28,378,918 | 28,240,544 | $ 26,622,907 | $ 23,977,446 | $ 24,587,847 | $ 24,652,273 |
PPP Loans | ||||||||
RESTATEMENT OF PREVIOUSLY ISSUED FINANCIAL STATEMENTS | ||||||||
Lines of credit and short-term borrowings | 10,084,531 | |||||||
Stockholders' equity | (10,084,531) | |||||||
As Previously Reported | PPP Loans | ||||||||
RESTATEMENT OF PREVIOUSLY ISSUED FINANCIAL STATEMENTS | ||||||||
Lines of credit and short-term borrowings | 13,080,320 | |||||||
Stockholders' equity | 38,325,075 | |||||||
Restated | PPP Loans | ||||||||
RESTATEMENT OF PREVIOUSLY ISSUED FINANCIAL STATEMENTS | ||||||||
Lines of credit and short-term borrowings | 23,164,851 | |||||||
Stockholders' equity | $ 28,240,544 |
DISAGGREGATION OF REVENUE (Deta
DISAGGREGATION OF REVENUE (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
DISAGGREGATION OF REVENUE | ||||
Total revenue from contracts | $ 85,529,892 | $ 51,171,939 | $ 199,245,920 | $ 129,223,642 |
Earned over time | ||||
DISAGGREGATION OF REVENUE | ||||
Total revenue from contracts | 72,218,682 | 40,029,106 | 169,664,626 | 108,248,744 |
Earned at point in time | ||||
DISAGGREGATION OF REVENUE | ||||
Total revenue from contracts | 13,311,210 | 11,142,833 | 29,581,294 | 20,974,898 |
Lump sum contracts | ||||
DISAGGREGATION OF REVENUE | ||||
Total revenue from contracts | 29,132,537 | 13,033,786 | 68,633,633 | 32,918,955 |
Unit price contracts | ||||
DISAGGREGATION OF REVENUE | ||||
Total revenue from contracts | 47,963,296 | 29,110,922 | 98,912,002 | 71,499,347 |
Cost plus and T&M contracts | ||||
DISAGGREGATION OF REVENUE | ||||
Total revenue from contracts | 8,434,059 | 9,027,231 | 31,700,285 | 24,805,340 |
Gas & Water Distribution | ||||
DISAGGREGATION OF REVENUE | ||||
Total revenue from contracts | 17,906,005 | 13,667,005 | 43,825,957 | 36,282,234 |
Gas & Water Distribution | Earned over time | ||||
DISAGGREGATION OF REVENUE | ||||
Total revenue from contracts | 7,738,419 | 3,315,407 | 21,328,177 | 17,263,257 |
Gas & Water Distribution | Earned at point in time | ||||
DISAGGREGATION OF REVENUE | ||||
Total revenue from contracts | 10,167,586 | 10,351,598 | 22,497,780 | 19,018,977 |
Gas & Water Distribution | Unit price contracts | ||||
DISAGGREGATION OF REVENUE | ||||
Total revenue from contracts | 17,906,005 | 13,667,005 | 43,825,957 | 36,282,234 |
Gas & Petroleum Transmission | ||||
DISAGGREGATION OF REVENUE | ||||
Total revenue from contracts | 28,488,329 | 15,443,917 | 50,718,004 | 35,217,113 |
Gas & Petroleum Transmission | Earned over time | ||||
DISAGGREGATION OF REVENUE | ||||
Total revenue from contracts | 28,488,329 | 15,443,917 | 50,718,004 | 35,217,113 |
Gas & Petroleum Transmission | Unit price contracts | ||||
DISAGGREGATION OF REVENUE | ||||
Total revenue from contracts | 28,488,329 | 15,443,917 | 50,718,004 | 35,217,113 |
Electrical, Mechanical, and General | ||||
DISAGGREGATION OF REVENUE | ||||
Total revenue from contracts | 39,135,558 | 22,061,017 | 104,701,959 | 57,724,295 |
Electrical, Mechanical, and General | Earned over time | ||||
DISAGGREGATION OF REVENUE | ||||
Total revenue from contracts | 35,991,934 | 21,269,782 | 97,618,445 | 55,768,374 |
Electrical, Mechanical, and General | Earned at point in time | ||||
DISAGGREGATION OF REVENUE | ||||
Total revenue from contracts | 3,143,624 | 791,235 | 7,083,514 | 1,955,921 |
Electrical, Mechanical, and General | Lump sum contracts | ||||
DISAGGREGATION OF REVENUE | ||||
Total revenue from contracts | 29,132,537 | 13,033,786 | 68,633,633 | 32,918,955 |
Electrical, Mechanical, and General | Unit price contracts | ||||
DISAGGREGATION OF REVENUE | ||||
Total revenue from contracts | 1,568,962 | 4,368,041 | ||
Electrical, Mechanical, and General | Cost plus and T&M contracts | ||||
DISAGGREGATION OF REVENUE | ||||
Total revenue from contracts | $ 8,434,059 | $ 9,027,231 | $ 31,700,285 | $ 24,805,340 |
CONTRACT BALANCES (Details)
CONTRACT BALANCES (Details) - USD ($) | 9 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Sep. 30, 2022 | |
CONTRACT BALANCES | |||
Accounts receivable-trade, net of allowance for doubtful accounts | $ 47,824,529 | $ 38,454,913 | |
Change in accounts receivable-trade, net of allowance for doubtful accounts | 9,369,616 | $ 3,086,194 | |
Contract assets | |||
Cost and estimated earnings in excess of billings | 12,198,918 | 16,109,593 | |
Change in cost and estimated earnings in excess of billings | (3,910,675) | 3,206,678 | |
Contract liabilities | |||
Billings in excess of cost and estimated earnings | 16,576,181 | $ 6,027,578 | |
Change in billings in excess of cost and estimated earnings | $ 10,548,603 | $ 2,961,585 |
CONTRACT BALANCES - Additional
CONTRACT BALANCES - Additional information (Details) - USD ($) | 3 Months Ended | 9 Months Ended |
Jun. 30, 2023 | Jun. 30, 2023 | |
CONTRACT BALANCES | ||
Recognized revenue included in contract liability | $ 100,000 | $ 5,700,000 |
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 | 9 Months Ended |
Jun. 30, 2023 USD ($) | Jun. 30, 2023 USD ($) | |
PERFORMANCE OBLIGATIONS | ||
Recognized revenue | $ 0 | $ 0 |
Amount of remaining unsatisfied performance obligations | $ 157,000,000 | $ 157,000,000 |
UNCOMPLETED CONTRACTS - Summary
UNCOMPLETED CONTRACTS - Summary of costs, estimated earnings, and billings on uncompleted contracts (Details) - USD ($) | Jun. 30, 2023 | Sep. 30, 2022 |
UNCOMPLETED CONTRACTS | ||
Costs incurred on contracts in progress | $ 165,370,815 | $ 192,957,145 |
Estimated earnings, net of estimated losses | 19,220,491 | 28,150,060 |
Costs of uncompleted contracts including net estimated earnings | 184,591,306 | 221,107,205 |
Less billings to date | 188,968,569 | 211,025,190 |
Unbilled contracts | (4,377,263) | 10,082,015 |
Costs and estimated earnings in excess of billed on uncompleted contracts | 12,198,918 | 16,109,593 |
Billings in excess of cost and estimated earnings | 16,576,181 | 6,027,578 |
Unbilled contracts receivable | $ (4,377,263) | $ 10,082,015 |
UNCOMPLETED CONTRACTS - Backlog
UNCOMPLETED CONTRACTS - Backlog (Details) - USD ($) $ in Millions | Jun. 30, 2023 | Sep. 30, 2022 |
UNCOMPLETED CONTRACTS | ||
Backlog | $ 185.9 | $ 142.3 |
FAIR VALUE MEASUREMENTS (Detail
FAIR VALUE MEASUREMENTS (Details) - USD ($) $ in Millions | Jun. 30, 2023 | Sep. 30, 2022 |
FAIR VALUE MEASUREMENTS | ||
Aggregate principal amount of fixed-rate debt | $ 27.2 | $ 25.1 |
Fair value of debt | $ 25.3 | $ 24.3 |
EARNINGS PER SHARE (Details)
EARNINGS PER SHARE (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||||||
Jun. 30, 2023 | Mar. 31, 2023 | Dec. 31, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Jun. 30, 2023 | Jun. 30, 2022 | |
EARNINGS PER SHARE | ||||||||
Net income | $ 3,415,546 | $ (1,873,600) | $ 138,374 | $ 1,597,243 | $ (610,401) | $ 1,145,836 | $ 1,680,320 | $ 2,132,678 |
Weighted average shares outstanding-basic | 16,602,556 | 16,449,829 | 16,659,169 | 16,270,499 | ||||
Weighted average shares-diluted | 16,602,556 | 16,449,829 | 16,659,169 | 16,270,499 | ||||
Earnings per share-basic | $ 0.21 | $ 0.10 | $ 0.10 | $ 0.13 | ||||
Earnings per share-diluted | $ 0.21 | $ 0.10 | $ 0.10 | $ 0.13 |
INCOME TAXES - Additional infor
INCOME TAXES - Additional information (Details) | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
INCOME TAXES | ||||
Effective income tax rate | 30.50% | 29% | 31.40% | 30.70% |
INCOME TAXES - Components of in
INCOME TAXES - Components of income taxes (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Federal | ||||
Current | $ 68,038 | $ 100,000 | $ 68,038 | $ 100,000 |
Deferred | 1,104,844 | 408,087 | 542,938 | 637,268 |
Total | 1,172,882 | 508,087 | 610,976 | 737,268 |
State | ||||
Deferred | 324,860 | 143,309 | 156,994 | 207,948 |
Total | 324,860 | 143,309 | 156,994 | 207,948 |
Total income tax expense | $ 1,497,742 | $ 651,396 | $ 767,970 | $ 945,216 |
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 ($) | Jun. 30, 2023 | Sep. 30, 2022 |
Deferred tax liabilities | ||
Property and equipment | $ 7,940,727 | $ 7,686,064 |
Other | 564,978 | 7,632 |
Total deferred tax liabilities | 8,505,705 | 7,693,696 |
Deferred income tax assets | ||
Other | 879,717 | 404,093 |
Net operating loss carryforward | 2,470,977 | 2,834,524 |
Total deferred tax assets | 3,350,694 | 3,238,617 |
Total net deferred tax liabilities | $ 5,155,011 | $ 4,455,079 |
SHORT-TERM AND LONG-TERM DEBT -
SHORT-TERM AND LONG-TERM DEBT - Summary of short-term and long-term debt (Details) - USD ($) | Jun. 30, 2023 | Sep. 30, 2022 |
SHORT-TERM AND LONG-TERM DEBT | ||
Total debt | $ 45,838,878 | $ 40,718,951 |
Less current maturities | 33,107,695 | 27,224,867 |
Total long term debt | 12,731,183 | 13,494,084 |
Line of credit payable to bank, final payment due by June 28, 2024 | ||
SHORT-TERM AND LONG-TERM DEBT | ||
Total debt | 16,200,000 | 12,500,000 |
Paycheck Protection Program loans from Small Business Administration, 1.0% simple interest, initially forgiven in the fiscal year ended September 30, 2021. Final forgiveness decision has not been determined. | ||
SHORT-TERM AND LONG-TERM DEBT | ||
Total debt | 10,159,144 | 10,084,531 |
Term note payable to United Bank, WV Pipeline acquisition, final payment due by March 25, 2026 | ||
SHORT-TERM AND LONG-TERM DEBT | ||
Total debt | 1,963,324 | 2,529,421 |
Notes payable to finance companies due July 2023 through August 2026 | ||
SHORT-TERM AND LONG-TERM DEBT | ||
Total debt | 1,324,858 | 889,165 |
Note payable to finance company for insurance premiums financed final due November 2023 in monthly installments | ||
SHORT-TERM AND LONG-TERM DEBT | ||
Total debt | 1,889,756 | 580,320 |
Notes payable to bank, final payment due November 2034 | ||
SHORT-TERM AND LONG-TERM DEBT | ||
Total debt | 827,019 | 867,383 |
Notes payable to bank, final payment due November 2025 | ||
SHORT-TERM AND LONG-TERM DEBT | ||
Total debt | 324,941 | 412,917 |
Notes payable to banks due October 2027 | ||
SHORT-TERM AND LONG-TERM DEBT | ||
Total debt | 2,739,910 | |
Notes payable to David and Daniel Bolton due final payment December 31, 2026 | ||
SHORT-TERM AND LONG-TERM DEBT | ||
Total debt | 1,652,500 | 2,380,000 |
Notes payable to bank, monthly interest rate at 9.25%, final payment due September 2026 | ||
SHORT-TERM AND LONG-TERM DEBT | ||
Total debt | 2,030,636 | 2,549,281 |
Term notes payable to United Bank, Tri-State Paving acquisition, final payment due by June 1, 2027 | ||
SHORT-TERM AND LONG-TERM DEBT | ||
Total debt | 6,024,254 | 6,982,097 |
Notes payable to Corns Enterprises, final payment due April 29, 2026 | ||
SHORT-TERM AND LONG-TERM DEBT | ||
Total debt | $ 702,536 | $ 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 ($) | 9 Months Ended | 12 Months Ended | |
Jun. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | |
SHORT-TERM AND LONG-TERM DEBT | |||
Fair value of debt | $ 25,300,000 | $ 24,300,000 | |
Line of credit payable to bank, final payment due by June 28, 2024 | |||
SHORT-TERM AND LONG-TERM DEBT | |||
Interest rate | 9.25% | ||
Equipment line of credit payable to United Bank | |||
SHORT-TERM AND LONG-TERM DEBT | |||
Borrowings | $ 9,300,000 | ||
Fixed interest rate | 7.25% | ||
Term of debt | 54 months | ||
Paycheck Protection Program loans from Small Business Administration, 1.0% simple interest, initially forgiven in the fiscal year ended September 30, 2021. Final forgiveness decision has not been determined. | |||
SHORT-TERM AND LONG-TERM DEBT | |||
Interest rate | 1% | ||
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 July 2023 through August 2026 | |||
SHORT-TERM AND LONG-TERM DEBT | |||
Note payable in monthly or annual installments | $ 48,000 | 60,000 | |
Notes payable to finance companies due July 2023 through August 2026 | Minimum | |||
SHORT-TERM AND LONG-TERM DEBT | |||
Interest rate | 0% | ||
Notes payable to finance companies due July 2023 through August 2026 | Maximum | |||
SHORT-TERM AND LONG-TERM DEBT | |||
Interest rate | 5.50% | ||
Note payable to finance company for insurance premiums financed final due November 2022 in monthly installments | |||
SHORT-TERM AND LONG-TERM DEBT | |||
Interest rate | 3.27% | ||
Note payable in monthly or annual installments | $ 327,000 | $ 282,000 | |
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 | 4.25% | ||
Note payable in monthly or annual installments | $ 11,602 | ||
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 9.25%, final payment due September 2026 | |||
SHORT-TERM AND LONG-TERM DEBT | |||
Interest rate | 9.25% | ||
Note payable in monthly or annual installments | $ 68,150 | ||
Debt instrument, Interest rate during period | 4.25% | ||
Term notes payable to United Bank, Tri-State Paving acquisition, final payment due by June 1, 2027 | |||
SHORT-TERM AND LONG-TERM DEBT | |||
Interest rate | 4.25% | ||
Note payable in monthly or annual installments | $ 129,910 | ||
Notes payable to Corns Enterprises, final payment due April 29, 2026 | |||
SHORT-TERM AND LONG-TERM DEBT | |||
Interest rate | 3.50% | ||
Note payable in monthly or annual installments | $ 1,000,000 | ||
Notes payable on annual installments | 250,000 | ||
Fair value of debt | $ 936,000 |
SHORT-TERM AND LONG-TERM DEBT_3
SHORT-TERM AND LONG-TERM DEBT - Additional information (Details) - USD ($) | 1 Months Ended | 9 Months Ended | 12 Months Ended | |||||
Apr. 27, 2020 | Apr. 30, 2023 | Jun. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | Jan. 19, 2023 | Jul. 13, 2022 | Apr. 07, 2020 | |
SHORT-TERM AND LONG-TERM DEBT | ||||||||
Line of credit remaining borrowing capacity | $ 16,200,000 | |||||||
Amount available to borrowing | $ 16,200,000 | |||||||
Ratio to be Maintained by Borrower for Maximum Senior Funded Debt to EBDITA | 3.5 | |||||||
Insurance policy premium outstanding | $ 1,900,000 | $ 580,000 | ||||||
PPP Loans | ||||||||
SHORT-TERM AND LONG-TERM DEBT | ||||||||
Lender aggregate principal amount | $ 13,100,000 | |||||||
Unanimously voted to return loans | $ 3,300,000 | |||||||
Amount of PPP loans to fund operations | 9,800,000 | |||||||
PPP loans received | $ 9,800,000 | $ 9,800,000 | ||||||
Short-term borrowings due to accrued interest | $ 9,800,000 | |||||||
United Bank, Inc. | Revolving credit facility | ||||||||
SHORT-TERM AND LONG-TERM DEBT | ||||||||
Line of credit | $ 30,000,000 | $ 15,000,000 | ||||||
Line of credit borrowing capacity | $ 24,400,000 | |||||||
Interest rate on the line of credit description | “Wall Street Journal” Prime Rate | |||||||
Interest rate on line of credit | 4.50% | 4.99% | ||||||
Interest rate | 9.25% | 5.50% | ||||||
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 | |||||||
Amount of loan covenants | $ 24,400,000 | |||||||
United Bank, Inc. | Revolving credit facility | Revolving line of credit component one | ||||||||
SHORT-TERM AND LONG-TERM DEBT | ||||||||
Line of credit remaining borrowing capacity | $ 12,500,000 | |||||||
Amount available to borrowing | $ 12,500,000 |
GOODWILL AND INTANGIBLE ASSET_2
GOODWILL AND INTANGIBLE ASSETS - Goodwill (Details) - USD ($) | 9 Months Ended | 12 Months Ended |
Jun. 30, 2023 | 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 | 6 Months Ended | 9 Months Ended | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2023 | Jun. 30, 2022 | Mar. 31, 2023 | Jun. 30, 2023 | Sep. 30, 2022 | |
GOODWILL AND INTANGIBLE ASSETS | ||||||
Original Cost | $ 4,548,843 | $ 4,548,843 | $ 4,548,843 | |||
Accumulated Amortization and Impairment | 1,076,374 | 135,820 | 401,221 | $ 675,153 | ||
Net Book Value | $ 3,472,469 | 3,472,469 | $ 3,472,469 | |||
Accumulated Amortization and impairment on identifiable intangible assets | $ 136,000 | $ 112,000 | ||||
Goodwill impairment | $ 0 | 0 | ||||
Customer Relationships | West Virginia Pipeline | ||||||
GOODWILL AND INTANGIBLE ASSETS | ||||||
Remaining Life | 90 months | 90 months | 90 months | |||
Original Cost | $ 2,209,724 | $ 2,209,724 | $ 2,209,724 | |||
Accumulated Amortization and Impairment | 573,225 | 65,643 | 186,532 | 386,693 | ||
Net Book Value | $ 1,636,499 | $ 1,636,499 | $ 1,636,499 | |||
Customer Relationships | Tri-State Paving | ||||||
GOODWILL AND INTANGIBLE ASSETS | ||||||
Remaining Life | 106 months | 106 months | 106 months | |||
Original Cost | $ 1,649,159 | $ 1,649,159 | $ 1,649,159 | |||
Accumulated Amortization and Impairment | 190,468 | 41,229 | 123,687 | 66,781 | ||
Net Book Value | $ 1,458,691 | $ 1,458,691 | $ 1,458,691 | |||
Tradename | West Virginia Pipeline | ||||||
GOODWILL AND INTANGIBLE ASSETS | ||||||
Remaining Life | 90 months | 90 months | 90 months | |||
Original Cost | $ 263,584 | $ 263,584 | $ 263,584 | |||
Accumulated Amortization and Impairment | 65,909 | 6,591 | 19,773 | 46,136 | ||
Net Book Value | $ 197,675 | $ 197,675 | $ 197,675 | |||
Tradename | Tri-State Paving | ||||||
GOODWILL AND INTANGIBLE ASSETS | ||||||
Remaining Life | 106 months | 106 months | 106 months | |||
Original Cost | $ 203,213 | $ 203,213 | $ 203,213 | |||
Accumulated Amortization and Impairment | 23,609 | 5,080 | 15,241 | 8,368 | ||
Net Book Value | 179,604 | 179,604 | 179,604 | |||
Non-competes | West Virginia Pipeline | ||||||
GOODWILL AND INTANGIBLE ASSETS | ||||||
Original Cost | 83,203 | 83,203 | 83,203 | |||
Accumulated Amortization and Impairment | 83,203 | 10,397 | 72,806 | |||
Non-competes | Tri-State Paving | ||||||
GOODWILL AND INTANGIBLE ASSETS | ||||||
Original Cost | 39,960 | 39,960 | 39,960 | |||
Accumulated Amortization and Impairment | 39,960 | 3,390 | 23,370 | 16,590 | ||
Employment agreement/non-compete | Revolt Energy | ||||||
GOODWILL AND INTANGIBLE ASSETS | ||||||
Original Cost | 100,000 | 100,000 | 100,000 | |||
Accumulated Amortization and Impairment | $ 100,000 | $ 13,887 | $ 22,221 | $ 77,779 |
GOODWILL AND INTANGIBLE ASSET_4
GOODWILL AND INTANGIBLE ASSETS - Identifiable intangible assets (Details) | Jun. 30, 2023 USD ($) |
Amortization expense | |
July 2023 to June 2024 | $ 430,008 |
July 2024 to June 2025 | 430,008 |
July 2025 to June 2026 | 430,008 |
July 2026 to June 2027 | 430,008 |
July 2027 to June 2028 | 430,008 |
After | 1,322,429 |
Total | $ 3,472,469 |
LEASE OBLIGATIONS (Details)
LEASE OBLIGATIONS (Details) | 3 Months Ended | 9 Months Ended | ||||||||
Aug. 11, 2022 USD ($) item | Apr. 29, 2022 USD ($) item | Mar. 25, 2021 item | Jun. 30, 2023 USD ($) | Jun. 30, 2022 USD ($) | Jun. 30, 2023 USD ($) agreement | Jun. 30, 2022 USD ($) | Mar. 28, 2023 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 | $ 160,000 | ||||||||
Term of finance leases | 22 months | 22 months | ||||||||
Finance lease, interest rate | 0% | 0% | ||||||||
Finance lease, monthly installment payments | $ 6,645 | |||||||||
Option to cancel the finance lease | false | |||||||||
Number of right of use operating leases | item | 2 | |||||||||
Carrying value | $ 1,213,496 | $ 1,213,496 | $ 588,653 | |||||||
Rental expense | 2,500,000 | $ 1,700,000 | 6,800,000 | $ 5,300,000 | ||||||
Operating Lease for Hurricane, WV Facility | ||||||||||
LEASE OBLIGATIONS | ||||||||||
Net present value | $ 236,000 | |||||||||
Carrying value | 148,000 | 148,000 | ||||||||
Operating Lease for Chattanooga, Tennessee Facility | ||||||||||
LEASE OBLIGATIONS | ||||||||||
Net present value | $ 144,000 | |||||||||
Carrying value | 72,000 | 72,000 | ||||||||
Interest rate on operating lease | 4.50% | |||||||||
Operating Lease with Enterprise Fleet Management, Inc | ||||||||||
LEASE OBLIGATIONS | ||||||||||
Net present value | $ 1,200,000 | |||||||||
Carrying value | 3,200,000 | 3,200,000 | ||||||||
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 | 21,000 | 21,000 | ||||||||
Interest rate on operating lease | 4.50% | |||||||||
Operating Lease for Winchester, Kentucky Facility | ||||||||||
LEASE OBLIGATIONS | ||||||||||
Net present value | $ 290,000 | |||||||||
Carrying value | $ 247,000 | $ 247,000 | ||||||||
Interest rate on operating lease | 7.75% |
LEASE OBLIGATIONS - Operating l
LEASE OBLIGATIONS - Operating lease-weighted average remaining term (Details) - USD ($) | Jun. 30, 2023 | Sep. 30, 2022 |
LEASE OBLIGATIONS | ||
Weighted average remaining term | 3 years 3 months 18 days | |
Present value of operating lease liabilities | $ 3,645,276 | $ 1,604,277 |
Operating lease 1 | ||
LEASE OBLIGATIONS | ||
Weighted average remaining term | 1 year 9 months 18 days | |
Present value of operating lease liabilities | $ 148,107 | 205,267 |
Operating lease 2 | ||
LEASE OBLIGATIONS | ||
Weighted average remaining term | 10 months 24 days | |
Present value of operating lease liabilities | $ 72,334 | 119,032 |
Operating lease 3 | ||
LEASE OBLIGATIONS | ||
Weighted average remaining term | 3 years 6 months | |
Present value of operating lease liabilities | $ 3,156,145 | 1,166,498 |
Operating lease 4 | ||
LEASE OBLIGATIONS | ||
Weighted average remaining term | 3 months 18 days | |
Present value of operating lease liabilities | $ 21,214 | $ 113,480 |
Operating lease 5 | ||
LEASE OBLIGATIONS | ||
Weighted average remaining term | 2 years 7 months 6 days | |
Present value of operating lease liabilities | $ 247,476 |
LEASE OBLIGATIONS - Operating_2
LEASE OBLIGATIONS - Operating lease maturity schedule (Details) - USD ($) | Jun. 30, 2023 | Sep. 30, 2022 |
LEASE OBLIGATIONS | ||
July 2023 to June 2024 | $ 1,234,784 | |
July 2024 to June 2025 | 1,140,516 | |
July 2025 to June 2026 | 1,016,679 | |
July 2026 to June 2027 | 545,026 | |
Operating lease liability | 3,937,005 | |
Less amounts representing interest | (291,729) | |
Present value of operating lease liabilities | $ 3,645,276 | $ 1,604,277 |
LEASE OBLIGATIONS - Operating_3
LEASE OBLIGATIONS - Operating lease expense (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
LEASE OBLIGATIONS | ||||
Total amortization | $ 262,671 | $ 17,377 | $ 577,531 | $ 17,377 |
Total interest | 35,562 | 2,160 | 77,887 | 2,160 |
Total amortization and interest | 298,233 | 19,537 | 655,418 | 19,537 |
Cash Paid for Operating Leases | 298,233 | 19,537 | 655,418 | 19,537 |
Operating lease 1 | ||||
LEASE OBLIGATIONS | ||||
Total amortization | 19,267 | 12,305 | 57,160 | 12,305 |
Total interest | 1,733 | 1,695 | 5,840 | 1,695 |
Cash Paid for Operating Leases | 21,000 | 14,000 | 63,000 | 14,000 |
Operating lease 2 | ||||
LEASE OBLIGATIONS | ||||
Total amortization | 15,741 | 5,072 | 46,698 | 5,072 |
Total interest | 870 | 465 | 3,135 | 465 |
Cash Paid for Operating Leases | 16,611 | $ 5,537 | 49,833 | $ 5,537 |
Operating lease 3 | ||||
LEASE OBLIGATIONS | ||||
Total amortization | 160,836 | 338,521 | ||
Total interest | 27,240 | 59,452 | ||
Cash Paid for Operating Leases | 185,942 | 397,973 | ||
Operating lease 4 | ||||
LEASE OBLIGATIONS | ||||
Total amortization | 30,947 | 92,266 | ||
Total interest | 703 | 2,684 | ||
Cash Paid for Operating Leases | 42,180 | 94,950 | ||
Operating lease 5 | ||||
LEASE OBLIGATIONS | ||||
Total amortization | 35,880 | 42,886 | ||
Total interest | 5,016 | 6,776 | ||
Cash Paid for Operating Leases | $ 32,500 | $ 49,662 |
LEASE OBLIGATIONS - Cash Paid f
LEASE OBLIGATIONS - Cash Paid for Operating Leases (Details) | 9 Months Ended |
Jun. 30, 2023 agreement | |
LEASE OBLIGATIONS | |
Lessee, Finance Lease, Number Of New Leases | 2 |
LEASE OBLIGATIONS - Additional
LEASE OBLIGATIONS - Additional Information (Details) | 3 Months Ended | 9 Months Ended | ||||
Jun. 30, 2023 USD ($) | Jun. 30, 2022 USD ($) | Jun. 30, 2023 USD ($) agreement | Jun. 30, 2022 USD ($) | Sep. 30, 2022 USD ($) | Mar. 25, 2021 | |
LEASE OBLIGATIONS | ||||||
Number of financing leases entered | agreement | 2 | |||||
Finance lease, value | $ 160,000 | $ 160,000 | ||||
Term of finance leases | 22 months | 22 months | ||||
Finance lease, interest rate | 0% | 0% | ||||
Finance lease, monthly installment payments | $ 6,645 | |||||
Option to cancel the finance lease | false | |||||
Net present value | $ 2,400,000 | $ 2,400,000 | ||||
Carrying value | 3,645,276 | 3,645,276 | $ 1,604,277 | |||
Maximum term of operating lease agreement | 2 years | |||||
Rental expense | $ 2,500,000 | $ 1,700,000 | $ 6,800,000 | $ 5,300,000 |