Energy Services of America CORP 10-Q

Item 1. Financial Statements (Unaudited): Energy Services of America Corporation Consolidated Balance Sheets Unaudited ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, ​ September 30, ​ ​ ​ ​ 2025 ​ ​ ​ 2025 Assets ​ ​ ​ ​ ​ ​ Current assets ​ ​ ​ ​ Cash and cash equivalents ​ $ 16,680,033 ​ $ 12,241,408 Accounts receivable-trade ​ 69,115,327 ​ 76,570,064 Allowance for doubtful accounts ​ ( 489,634 ) ​ ( 521,616 ) Retainages receivable ​ 18,257,080 ​ 16,049,557 Other receivables ​ 1,241,758 ​ 1,103,687 Contract assets ​ 23,334,573 ​ 34,455,011 Prepaid expenses and other ​ 3,608,136 ​ 5,025,476 Total current assets ​ 131,747,273 ​ 144,923,587 ​ ​ ​ ​ ​ Property, plant and equipment, at cost ​ 118,010,356 ​ 115,448,972 less accumulated depreciation ​ ( 65,134,657 ) ​ ( 61,981,005 ) Total fixed assets ​ 52,875,699 ​ 53,467,967 ​ ​ ​ ​ ​ ​ ​ Right-of-use assets-operating leases ​ ​ 2,010,283 ​ ​ 2,054,615 Intangible assets, net ​ ​ 4,489,141 ​ ​ 4,895,083 Goodwill ​ ​ 9,865,804 ​ ​ 9,865,804 Total assets ​ $ 200,988,200 ​ $ 215,207,056 ​ ​ ​ ​ ​ Liabilities and shareholders’ equity ​ ​ ​ ​ Current liabilities ​ ​ ​ ​ Current maturities of long-term debt ​ $ 11,037,491 ​ $ 11,546,816 Current maturities of lines of credit and short-term borrowings ​ 10,417,572 ​ 10,401,366 Current maturities of operating lease liabilities ​ ​ 1,060,631 ​ ​ 1,061,021 Accounts payable ​ 24,331,364 ​ 30,732,523 Accrued expenses and other current liabilities ​ 13,185,433 ​ 15,918,593 Contract liabilities ​ 31,017,410 ​ 28,318,765 Income tax payable ​ 168,280 ​ — Total current liabilities ​ 91,218,181 ​ 97,979,084 ​ ​ ​ ​ ​ Long-term debt, less current maturities ​ 40,503,450 ​ 50,256,031 Long-term operating lease liabilities, less current maturities ​ ​ 938,576 ​ ​ 982,621 Deferred tax liability ​ 7,731,973 ​ 6,753,527 Total liabilities ​ 140,392,180 ​ 155,971,263 ​ ​ ​ ​ ​ Shareholders’ equity ​ ​ ​ ​ Common stock, $ .0001 par value ​ ​ ​ ​ ​ ​ Authorized 50,000,000 shares, 16,653,998 shares issued (net of treasury shares) and 16,609,071 shares outstanding (excluding 44,927 shares from unvested stock awards) at December 31, 2025 and 16,748,702 shares issued (net of treasury shares) and 16,715,026 shares outstanding (excluding 33,676 unvested shares from restricted stock awards) at September 30, 2025 ​ 1,813 ​ 1,813 Treasury stock, 1,502,075 shares at December 31, 2025 and 1,396,120 shares at September 30, 2025 ​ ( 154 ) ​ ( 143 ) Additional paid in capital ​ 61,603,895 ​ 62,450,414 Retained deficit ​ ( 1,009,534 ) ​ ( 3,216,291 ) Total shareholders’ equity ​ 60,596,020 ​ 59,235,793 Total liabilities and shareholders’ equity ​ $ 200,988,200 ​ $ 215,207,056 ​ The Accompanying Notes are an Integral Part of These Financial Statements ​ 2 Table of Contents Energy Services of America Corporation Consolidated Statements of Income Unaudited ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ Three Months Ended ​ ​ December 31, ​ December 31, ​ ​ ​ ​ 2025 ​ ​ ​ 2024 Revenue ​ $ 114,112,200 ​ $ 100,646,114 ​ ​ ​ ​ ​ Cost of revenue ​ 100,118,408 ​ 90,382,532 ​ ​ ​ ​ ​ Gross profit ​ 13,993,792 ​ 10,263,582 ​ ​ ​ ​ ​ Selling and administrative expenses ​ 9,081,029 ​ 8,618,188 Income from operations ​ 4,912,763 ​ 1,645,394 ​ ​ ​ ​ ​ Other income (expense) ​ ​ ​ ​ Other nonoperating expense ​ ​ ( 102,642 ) ​ ​ ( 48,262 ) Interest expense ​ ​ ( 989,851 ) ​ ​ ( 483,718 ) Gain on sale of equipment ​ 18,756 ​ 195,782 ​ ​ ( 1,073,737 ) ​ ( 336,198 ) ​ ​ ​ ​ ​ Income before income taxes ​ 3,839,026 ​ 1,309,196 ​ ​ ​ ​ ​ Income tax expense ​ 1,133,544 ​ 455,463 ​ ​ ​ ​ ​ Net income ​ ​ 2,705,482 ​ ​ 853,733 ​ ​ ​ ​ ​ Weighted average shares outstanding-basic ​ 16,703,674 ​ 16,585,334 ​ ​ ​ ​ ​ Weighted average shares-diluted ​ 16,742,867 ​ 16,636,561 ​ ​ ​ ​ ​ Earnings per share available to common shareholders ​ $ 0.16 ​ $ 0.05 ​ ​ ​ ​ ​ ​ ​ Earnings per share-diluted available to common shareholders ​ $ 0.16 ​ $ 0.05 ​ The Accompanying Notes are an Integral Part of These Financial Statements ​ 3 Table of Contents Energy Services of America Corporation Consolidated Statements of Cash Flows Unaudited ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ Three Months Ended ​ ​ December 31, ​ December 31, ​ ​ ​ ​ 2025 ​ ​ ​ 2024 Cash flows from operating activities: ​ ​ ​ ​ Net income ​ $ 2,705,482 ​ $ 853,733 Adjustments to reconcile net income to net cash provided by operating activities: ​ ​ ​ ​ ​ Depreciation expense ​ 3,352,708 ​ 2,567,965 Accreted interest on PPP loans ​ ​ 16,206 ​ ​ 25,142 Gain on sale of equipment ​ ​ ( 18,756 ) ​ ​ ( 195,782 ) Provision for deferred taxes ​ 978,446 ​ 378,172 Amortization of intangible assets ​ ​ 405,942 ​ ​ 130,863 Accreted interest on note payable ​ 1,950 ​ 15,000 Decrease (increase) in accounts receivable-trade ​ ​ 7,422,755 ​ ​ ( 2,274,866 ) Increase in retainage receivable ​ ( 2,207,523 ) ​ ( 731,991 ) Increase in other receivables ​ ​ ( 138,071 ) ​ ​ ( 305,287 ) Decrease in contract assets ​ 11,120,438 ​ 6,811,884 Decrease in prepaid expenses and other ​ ​ 1,417,340 ​ ​ 985,901 Decrease increase in accounts payable ​ ​ ( 6,401,159 ) ​ ​ ( 323,528 ) Decrease in accrued expenses and other current liabilities ​ ​ ( 2,564,316 ) ​ ​ ( 3,956,671 ) Increase in contract liabilities ​ 2,698,645 ​ 4,897,945 Net cash provided by operating activities ​ ​ 18,790,087 ​ ​ 8,878,480 ​ ​ ​ ​ ​ Cash flows from investing activities: ​ ​ ​ ​ Investment in property and equipment ​ ( 2,011,997 ) ​ ( 2,890,223 ) Acquistion of Tribute Contracting & Consultants ​ ​ — ​ ​ ( 20,783,224 ) Proceeds from sales of property and equipment ​ 110,776 ​ 486,012 Net cash used in investing activities ​ ( 1,901,221 ) ​ ( 23,187,435 ) ​ ​ ​ ​ ​ ​ ​ Cash flows from financing activities: ​ ​ ​ ​ Proceeds from long-term debt ​ — ​ 16,000,000 Borrowings on lines of credit and short-term debt, net of (repayments) ​ ​ ( 7,750,000 ) ​ ​ 7,500,000 Treasury stock purchased ​ ​ ( 846,530 ) ​ ​ — Cash dividend on common stock ​ ​ ( 501,342 ) ​ ​ — Principal payments on long-term debt ​ ​ ( 3,352,369 ) ​ ​ ( 1,768,659 ) Net cash (used in) provided by financing activities ​ ( 12,450,241 ) ​ 21,731,341 ​ ​ ​ ​ ​ ​ ​ Increase in cash and cash equivalents ​ 4,438,625 ​ 7,422,386 Cash and cash equivalents beginning of period ​ 12,241,408 ​ 12,926,036 Cash and cash equivalents end of period ​ $ 16,680,033 ​ $ 20,348,422 ​ ​ ​ ​ ​ Supplemental schedule of noncash investing and financing activities: ​ ​ ​ ​ Purchases of property & equipment under financing agreements ​ $ 840,463 ​ $ 201,538 Net operating lease right-of-use assets received in exchange for operating lease liabilities ​ $ 245,726 ​ $ 342,606 Common dividends declared but not paid ​ $ 498,725 ​ $ 501,164 Common stock issued in Tribute Contracting & Consultants acquisition ​ $ — ​ $ 2,000,000 ​ ​ ​ ​ ​ Supplemental disclosures of cash flows information: ​ ​ ​ ​ Cash paid during the year for: ​ ​ ​ ​ Interest ​ $ 941,616 ​ $ 441,424 ​ The Accompanying Notes are an Integral Part of These Financial Statements ​ 4 Table of Contents Energy Services of America Corporation Consolidated Statements of Changes in Shareholders’ Equity For the three months ended December 31, 2025 and 2024 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total ​ ​ Common Stock ​ Additional Paid ​ Retained ​ Treasury ​ Shareholders’ ​ ​ ​ ​ Shares ​ ​ ​ Amount ​ ​ ​ in Capital ​ ​ ​ Deficit ​ ​ ​ Stock ​ ​ ​ Equity Balance at September 30, 2025 ​ 16,748,702 ​ $ 1,813 ​ $ 62,450,414 ​ $ ( 3,216,291 ) ​ $ ( 143 ) ​ $ 59,235,793 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net income ​ — ​ ​ — ​ ​ — ​ ​ 2,705,482 ​ ​ — ​ ​ 2,705,482 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Restricted stock awards issued ​ 11,251 ​ ​ — ​ ​ 100,004 ​ ​ — ​ ​ — ​ ​ 100,004 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Unearned share-based compensation ​ — ​ ​ — ​ ​ ( 100,004 ) ​ ​ — ​ ​ — ​ ​ ( 100,004 ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Dividends on common stock ($ 0.03 per share on 16,624,181 shares) ​ — ​ ​ — ​ ​ — ​ ​ ( 498,725 ) ​ ​ — ​ ​ ( 498,725 ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Shares repurchased ​ ( 105,955 ) ​ ​ — ​ ​ ( 846,519 ) ​ ​ — ​ ​ ( 11 ) ​ ​ ( 846,530 ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Balance at December 31, 2025 ​ 16,653,998 ​ $ 1,813 ​ $ 61,603,895 ​ $ ( 1,009,534 ) ​ $ ( 154 ) ​ $ 60,596,020 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total ​ ​ Common Stock ​ Additional Paid ​ Retained ​ Treasury ​ Shareholders’ ​ ​ ​ ​ Shares ​ ​ ​ Amount ​ ​ ​ in Capital ​ ​ ​ Deficit ​ ​ ​ Stock ​ ​ ​ Equity Balance at September 30, 2024 ​ 16,570,685 ​ $ 1,790 ​ $ 60,282,921 ​ $ ( 1,590,434 ) ​ $ ( 133 ) ​ $ 58,694,144 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net income ​ — ​ ​ — ​ ​ — ​ ​ 853,733 ​ ​ — ​ ​ 853,733 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Dividends on common stock ($ 0.03 per share on 16,705,457 shares) ​ — ​ ​ — ​ ​ — ​ ​ ( 501,164 ) ​ ​ — ​ ​ ( 501,164 ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Common shares issued as part of acquisition ​ 134,772 ​ ​ 13 ​ ​ 1,999,987 ​ ​ — ​ ​ — ​ ​ 2,000,000 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Balance at December 31, 2024 ​ 16,705,457 ​ $ 1,803 ​ $ 62,282,908 ​ $ ( 1,237,865 ) ​ $ ( 133 ) ​ $ 61,046,713 ​ The Accompanying Notes are an Integral Part of These Financial Statements ​ 5 Table of Contents ENERGY SERVICES OF AMERICA CORPORATION NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS 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 pipeline services include corrosion protection services, horizontal drilling services, 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 broadband and solar electric systems and perform civil and general contracting services. Segments Energy Services’ reportable segments are: Underground Infrastructure Construction, Industrial Construction, and Building Construction. Underground Infrastructure Construction primarily includes new construction and maintenance work in the following areas: water and wastewater pipelines, natural gas distribution pipelines, natural gas transmission pipelines, natural gas stations and ancillary facilities, corrosion protection services, and horizontal drilling services. Industrial Constructions primarily includes new construction and maintenance work in the following areas: electrical, mechanical, HVAC/R, controls, and fire protection services in automotive, chemical, power, and manufacturing facilities. Building Construction primarily includes new construction and rehabilitation activities in the following areas: school projects, local and state building projects, and small bridge projects. Most services performed by the legal entity in this segment are subcontracted both to outside contractors and internally to other legal entities within the Company. Services subcontracted internally are eliminated from segmented reporting. 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, 2025, and 2024 included in the Company’s Annual Report on Form 10-K filed with the SEC on December 15, 2025. Certain information and footnote disclosures normally included in annual financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) have been omitted pursuant to the interim financial reporting rules and regulations of the SEC. The financial statements reflect all adjustments (consisting primarily of normal recurring adjustments) that are, in the opinion of management, necessary for a fair presentation of the Company’s financial position and results of operations. The operating results for the three months ended December 31, 2025 and 2024 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, Tribute 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, Tribute, and C.J. Hughes and its subsidiaries. 6 Table of Contents 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. ​ 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Please refer to Note 2 “ Summary of Significant Accounting Policies ” of the Consolidated Financial Statements in our Annual Report on Form 10-K for the year ended September 30, 2025, for a more detailed discussion of our significant accounting policies. There were no material changes to these significant accounting policies during the three months ended December 31, 2025. ​ 3. ACCOUNTING FOR PAYCHECK PROTECTION PROGRAM LOANS Due to the economic uncertainties created by COVID-19 and limited operating funds available, the Company applied for loans under the Paycheck Protection Program (“PPP”). On April 15, 2020, 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 its lender (the “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 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 audited financial statements of the Company for the fiscal years 2022 and 2021. 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. As of December 31, 2025, there have been no further requests or communications from the SBA relating to the PPP Loans. Borrowers must retain PPP documentation for at least six years after the date the loan is forgiven or paid in full, and the SBA and SBA Inspector General must be granted these files upon request. The SBA could revisit its forgiveness decision and determine that the Company does not qualify as a whole or in part for loan forgiveness and demand repayment of the loans. In addition, it is unknown what type of penalties could be assessed against the Company if the SBA disagrees with the Company’s certification. Any penalties in addition to the potential repayment of the PPP Loans could negatively impact the Company’s business, financial condition and results of operations and prospects. ​ 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 (“ASC 606” or “Topic 606”) which provides for a five-step model for recognizing revenue from contracts with customers as follows: ● Identify the contract ● Identify performance obligations ● Determine the transaction price ● Allocate the transaction price 7 Table of Contents ● Recognize revenue The accuracy of our revenue and profit recognition in a given period depends on the accuracy of our estimates of the cost to complete each project. We believe our experience allows us to create materially reliable estimates. There are a number of factors that can contribute to changes in estimates of contract cost and profitability. The most significant of these include: ● the completeness and accuracy of the original bid; ● costs associated with scope changes; ● changes in costs of labor and/or materials; ● extended overhead and other costs due to owner, weather and other delays; ● subcontractor performance issues; ● changes in productivity expectations; ● site conditions that differ from those assumed in the original bid; ● changes from original design on design-build projects; ● the availability and skill level of workers in the geographic location of the project; ● a change in the availability and proximity of equipment and materials; ● our ability to fully and promptly recover on affirmative claims and back charges for additional contract costs; and ● the customer’s ability to properly administer the contract. The foregoing factors, as well as the stage of completion of contracts in process and the mix of contracts at different margins may cause fluctuations in gross profit from period to period. Significant changes in cost estimates, particularly in our larger, more complex projects, could have a significant effect on our profitability. Our contract assets include cost and estimated earnings in excess of billings that represent amounts earned and reimbursable under contracts, including claim recovery estimates, but have a conditional right for billing and payment such as achievement of milestones or completion of the project. With the exception of customer affirmative claims, generally, such unbilled amounts will become billable according to the contract terms and generally will be billed and collected over the next three months. Settlement with the customer of outstanding affirmative claims is dependent on the claims resolution process and could extend beyond one year. Based on our historical experience, we generally consider the collection risk related to billable amounts to be low. When events or conditions indicate that it is probable that the amounts outstanding become unbillable, the transaction price and associated contract asset is reduced. Our contract liabilities consist of provisions for losses and billings in excess of costs and estimated earnings. Provisions for losses, if incurred, are recognized in the consolidated statements of income at the uncompleted performance obligation level for the amount of total estimated losses in the period that evidence indicates that the estimated total cost of a performance obligation exceeds its estimated total revenue. Billings in excess of costs and estimated earnings are billings to customers on contracts in advance of work performed, including advance payments negotiated as a contract condition. Generally, unearned project-related costs will be earned over the next twelve months. ​ 5. SEGMENT INFORMATION Energy Services’ operations are managed by senior executives who report to the Company’s President and CEO (the “President”), the chief operating decision maker. The President uses operating income for each of Energy Services’ reportable segments and considers forecast to actual variances to assess performance and when making decisions about allocating capital and other resources. Energy Services’ reportable segments are: Underground Infrastructure Construction, Industrial Construction, and Building Construction. Underground Infrastructure Construction primarily includes new construction and maintenance work in the following areas: water and wastewater pipelines, natural gas distribution pipelines, natural gas transmission pipelines, natural gas stations and ancillary facilities, corrosion protection services, and horizontal drilling services. Industrial Constructions primarily includes new construction and maintenance work in the following areas: electrical, mechanical, HVAC/R, controls, and fire protection services in automotive, chemical, power, and manufacturing facilities. 8 Table of Contents Building Construction primarily includes new construction and rehabilitation activities in the following areas: school projects, local and state building projects, and small bridge projects. Most services performed by the legal entity in this segment are subcontracted both to outside contractors and internally to other legal entities within the Company. Services subcontracted internally are eliminated from segmented reporting. Energy Services’ segment results are derived from the types of services provided across its operating companies in each of its end-user markets. The Company’s business model allows multiple operating companies to serve the same or similar customers and to provide a range of services across end-user markets. Reportable segment information, including revenues and operating income by type of work, is gathered from each operating company. Classification of operating company revenues by type of work for segment reporting purposes can require judgment on the part of management. Segment operating expenses (excluding depreciation expense) primarily include cost of services, such as wages and benefits; subcontractor costs; materials; certain equipment rental and maintenance costs, and other direct and indirect project costs. Separate measures of the Company’s assets and cash flows by reportable segment, including capital expenditures, are utilized by the President to evaluate segment performance since the Company’s fixed assets are not used on an interchangeable basis across its reportable segments. Corporate and non-allocated costs include non-allocated corporate salaries, benefits and incentive compensation, acquisition and integration costs, non-cash stock-based compensation, investor relation expenses, and accounting review and audit fees. The following tables show interim segment financial information for the three months ended and at December 31, 2025: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Underground ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Infrastructure ​ Industrial ​ Building ​ ​ ​ ​ Three Months Ended December 31, 2025 ​ ​ ​ Construction ​ ​ ​ Construction ​ ​ ​ Construction Total ​ Revenues ​ $ 69,177,084 ​ $ 33,746,447 ​ $ 11,188,669 ​ $ 114,112,200 ​ Segment direct operating expenses (excluding depreciation) ​ ​ 56,926,976 ​ ​ 30,385,586 ​ ​ 9,563,454 ​ ​ 96,876,016 ​ Direct depreciation expense ​ ​ 2,600,494 ​ ​ 641,898 ​ ​ — ​ ​ 3,242,392 ​ Segment gross profit ​ ​ 9,649,614 ​ ​ 2,718,963 ​ ​ 1,625,215 ​ ​ 13,993,792 ​ Segment gross profit percentage ​ ​ 13.9 % ​ 8.1 % ​ 14.5 % ​ 12.3 % Selling, general, and administrative expenses ​ ​ 4,797,016 ​ ​ 1,103,946 ​ ​ 1,015,670 ​ ​ 6,916,632 ​ Indirect depreciation expense ​ ​ — ​ ​ — ​ ​ 108,722 ​ ​ 108,722 ​ Intangible asset amortization expenses ​ ​ 351,222 ​ ​ 54,720 ​ ​ — ​ ​ 405,942 ​ Segment indirect operating expenses ​ ​ 5,148,238 ​ ​ 1,158,666 ​ ​ 1,124,392 ​ ​ 7,431,296 ​ Segment income from operations ​ ​ 4,501,376 ​ ​ 1,560,297 ​ ​ 500,823 ​ ​ 6,562,496 ​ Segment operating margin percentage ​ ​ 6.5 % ​ 4.6 % ​ 4.5 % ​ 5.8 % Corporate and non-allocated costs ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 1,648,139 ​ Corporate depreciation expense ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 1,594 ​ Total consolidated income from operations ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ $ 4,912,763 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ At December 31, 2025 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Underground ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Infrastructure ​ ​ Industrial ​ Building ​ ​ ​ Property, plant and equipment, at cost, less accumulated depreciation ​ ​ ​ Construction ​ ​ ​ Construction ​ ​ ​ Construction ​ ​ ​ Total Segments ​ $ 37,357,166 ​ $ 14,346,025 ​ $ 1,136,243 ​ $ 52,839,434 Corporate ​ ​ — ​ ​ — ​ ​ — ​ ​ 36,265 Total ​ $ 37,357,166 ​ $ 14,346,025 ​ $ 1,136,243 ​ $ 52,875,699 ​ 9 Table of Contents The following tables show interim segment financial information for the three months ended and at December 31, 2024: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Underground ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Infrastructure ​ Industrial ​ Building ​ ​ ​ ​ Three Months Ended December 31, 2024 ​ ​ ​ Construction ​ ​ ​ Construction ​ ​ ​ Construction ​ ​ ​ Total ​ Revenues ​ $ 52,820,146 ​ $ 35,396,513 ​ $ 12,429,455 ​ $ 100,646,114 ​ Segment direct operating expenses (excluding depreciation) ​ ​ 45,045,769 ​ ​ 31,870,920 ​ ​ 10,981,521 ​ ​ 87,898,210 ​ Direct depreciation expense ​ ​ 1,842,414 ​ ​ 641,908 ​ ​ — ​ ​ 2,484,322 ​ Segment gross profit ​ ​ 5,931,963 ​ ​ 2,883,685 ​ ​ 1,447,934 ​ ​ 10,263,582 ​ Segment gross profit percentage ​ ​ 11.2 % ​ 8.1 % ​ 11.6 % ​ 10.2 % Selling, general, and administrative expenses ​ ​ 4,759,449 ​ ​ 977,906 ​ ​ 781,811 ​ ​ 6,519,166 ​ Indirect depreciation expense ​ ​ — ​ ​ — ​ ​ 82,486 ​ ​ 82,486 ​ Intangible asset amortization expenses ​ ​ 124,809 ​ ​ 6,054 ​ ​ — ​ ​ 130,863 ​ Segment indirect operating expenses ​ ​ 4,884,258 ​ ​ 983,960 ​ ​ 864,297 ​ ​ 6,732,515 ​ Segment income from operations ​ ​ 1,047,705 ​ ​ 1,899,725 ​ ​ 583,637 ​ ​ 3,531,067 ​ Segment operating margin percentage ​ ​ 2.0 % ​ 5.4 % ​ 4.7 % ​ 3.5 % Corporate and non-allocated costs ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 1,884,516 ​ Corporate depreciation expense ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 1,157 ​ Total consolidated income from operations ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ $ 1,645,394 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ At December 31, 2024 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Underground ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Infrastructure ​ ​ Industrial ​ Building ​ ​ ​ Property, plant and equipment, at cost, less accumulated depreciation ​ ​ ​ Construction ​ ​ ​ Construction ​ ​ ​ Construction ​ ​ ​ Total Segments ​ $ 37,781,123 ​ $ 14,537,312 ​ $ 940,369 ​ $ 53,258,804 Corporate ​ ​ — ​ ​ — ​ ​ — ​ ​ 11,002 Total ​ $ 37,781,123 ​ $ 14,537,312 ​ $ 940,369 ​ $ 53,269,806 ​ ​ 6. 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 T&M. The following tables present our disaggregated revenue for the three months ended December 31, 2025 and 2024: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended December 31, 2025 ​ ​ ​ ​ ​ ​ Electrical, ​ ​ ​ ​ Gas & Water ​ Gas & Petroleum ​ Mechanical, & ​ Total revenue ​ ​ ​ ​ Distribution ​ ​ ​ Transmission ​ ​ ​ General ​ ​ ​ from contracts Lump sum contracts ​ $ — ​ $ — ​ $ 33,282,853 ​ $ 33,282,853 Unit price contracts ​ 40,610,268 ​ 856,203 ​ 765,250 ​ 42,231,721 Cost plus and T&M contracts ​ — ​ 23,270,021 ​ 15,327,605 ​ 38,597,626 Total revenue from contracts ​ $ 40,610,268 ​ $ 24,126,224 ​ $ 49,375,708 ​ $ 114,112,200 ​ ​ ​ ​ ​ ​ ​ ​ ​ Earned over time ​ $ 22,677,256 ​ $ 856,203 ​ $ 35,670,911 ​ $ 59,204,370 Earned at point in time ​ 17,933,012 ​ 23,270,021 ​ 13,704,797 ​ 54,907,830 Total revenue from contracts ​ $ 40,610,268 ​ $ 24,126,224 ​ $ 49,375,708 ​ $ 114,112,200 ​ 10 Table of Contents ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended December 31, 2024 ​ ​ ​ ​ ​ ​ Electrical, ​ ​ ​ ​ ​ Gas &Water ​ Gas & Petroleum ​ Mechanical, & ​ Total revenue ​ ​ ​ ​ Distribution ​ ​ ​ Transmission ​ ​ ​ General ​ ​ ​ from contracts Lump sum contracts ​ $ — ​ $ — ​ $ 37,733,823 ​ $ 37,733,823 Unit price contracts ​ 31,300,009 ​ 18,418,317 ​ 993,395 ​ 50,711,721 Cost plus and T&M contracts ​ — ​ 37,900 ​ 12,162,670 ​ 12,200,570 Total revenue from contracts ​ $ 31,300,009 ​ $ 18,456,217 ​ $ 50,889,888 ​ $ 100,646,114 ​ ​ ​ ​ ​ ​ ​ ​ ​ Earned over time ​ $ 19,487,205 ​ $ 18,418,317 ​ $ 38,682,101 ​ $ 76,587,623 Earned at point in time ​ 11,812,804 ​ 37,900 ​ 12,207,787 ​ 24,058,491 Total revenue from contracts ​ $ 31,300,009 ​ $ 18,456,217 ​ $ 50,889,888 ​ $ 100,646,114 ​ The Company’s disaggregated revenue does vary slightly from the Company’s segment reporting due to combining the Industrial and Building Construction into Electrical, Mechanical, & and General, and one legal entity in the Underground Infrastructure Construction segment that performs services other than underground construction that are included in Electrical, Mechanical, & General. The volume of these services is not material to the Company’s segment reporting. ​ ​ 7. CONTRACT BALANCES The Company’s accounts receivable consists of amounts that have been billed to customers and collateral is generally not required. Most of the Company’s contracts have monthly billing terms; however, billing terms for some are based on project completion. Payment terms are generally within 30 to 45 days after invoices have been issued. The Company attempts to negotiate two-week billing terms and 15-day payment terms on larger projects. The timing of billings to customers may generate contract assets or contract liabilities. During the three months ended December 31, 2025, we recognized revenue of $ 14.7 million that was included in the contract liability balance at September 30, 2025. Accounts receivable-trade, net of allowance for doubtful accounts, contract assets and contract liabilities consisted of the following: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, 2025 ​ ​ ​ September 30, 2025 ​ ​ ​ Change Accounts receivable-trade, net of allowance for doubtful accounts ​ $ 68,625,693 ​ $ 76,048,448 ​ $ ( 7,422,755 ) ​ ​ ​ ​ ​ ​ ​ Contract assets ​ ​ ​ ​ ​ ​ Cost and estimated earnings in excess of billings ​ $ 23,334,573 ​ $ 34,455,011 ​ $ ( 11,120,438 ) ​ ​ ​ ​ ​ ​ ​ Contract liabilities ​ ​ ​ ​ ​ ​ Billings in excess of cost and estimated earnings ​ $ 31,017,410 ​ $ 28,318,765 ​ $ 2,698,645 ​ ​ 8. PERFORMANCE OBLIGATIONS For the three months ended December 31, 2025, there was no significant revenue recognized as a result of changes in contract transaction price related to performance obligations that were satisfied prior to September 30, 2025. Changes in contract transaction price can result from items such as executed or estimated change orders, and unresolved contract modifications and claims. At December 31, 2025, the Company had $ 236.0 million in remaining unsatisfied performance obligations, in which revenue is expected to be recognized over the next twelve months. ​ 11 Table of Contents 9. UNCOMPLETED CONTRACTS Costs, estimated earnings, and billings on uncompleted contracts as of December 31, 2025 and September 30, 2025, are summarized as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, 2025 ​ ​ ​ September 30, 2025 Costs incurred on contracts in progress ​ $ 473,568,702 ​ $ 471,208,654 Estimated earnings, net of estimated losses ​ 75,713,201 ​ 71,159,322 ​ ​ 549,281,903 ​ 542,367,976 Less billings to date ​ 556,964,740 ​ 536,231,730 ​ ​ $ ( 7,682,837 ) ​ $ 6,136,246 ​ ​ ​ ​ ​ ​ ​ Costs and estimated earnings in excess of billed on uncompleted contracts ​ $ 23,334,573 ​ $ 34,455,011 ​ ​ ​ ​ ​ ​ ​ Less billings in excess of costs and estimated earnings on uncompleted contracts ​ 31,017,410 ​ 28,318,765 ​ ​ ​ ​ ​ ​ ​ ​ ​ $ ( 7,682,837 ) ​ $ 6,136,246 ​ The Company’s unaudited backlog at December 31, 2025 and September 30, 2025 was $ 301.4 million and $ 259.7 million, respectively. ​ 10. FAIR VALUE MEASUREMENTS The fair value measurement guidance of the Financial Accounting Standards Board (“FASB”) ASC 820, Fair Measurement defines fair value, establishes a framework for measuring fair value in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and specifies disclosures about fair value measurements. 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 — Quoted prices for identical assets and liabilities traded in active exchange markets, such as the New York Stock Exchange. Level 2 — Observable inputs other than Level 1 include quoted prices for similar assets or liabilities, quoted prices in less active markets, or other observable inputs that can be corroborated by observable market data. Level 2 also includes derivative contracts whose value is determined using a pricing model with observable market inputs or can be derived principally from or corroborated by observable market data. Level 3 — Unobservable inputs supported by little or no market activity for financial instruments whose value is determined using pricing models, discounted cash flow methodologies, or similar techniques, as well as instruments for which the determination of fair value requires significant management judgment or estimation; also includes observable inputs for nonbinding single dealer quotes not corroborated by observable market data. 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 $ 41.2 million at December 31, 2025 was $ 40.7 million. The fair value of the aggregate principal amount of the Company’s fixed-rate debt of $ 43.8 million at September 30, 2025 was $ 42.8 million. 12 Table of Contents All other current assets and liabilities are carried at net realizable value which approximates fair value because of their short duration to maturity. ​ 11. EARNINGS PER SHARE The amounts used to compute the earnings per share for the three months ended December 31, 2025 and 2024 are summarized below. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ ​ ​ Three Months Ended ​ ​ December 31, 2025 ​ December 31, 2024 Net income ​ $ 2,705,482 ​ $ 853,733 ​ ​ ​ ​ ​ Weighted average shares outstanding-basic ​ 16,703,674 ​ 16,585,334 ​ ​ ​ ​ ​ Weighted average shares outstanding-diluted ​ 16,742,867 ​ 16,636,561 ​ ​ ​ ​ ​ Earnings per share available to common shareholders ​ $ 0.16 ​ $ 0.05 ​ ​ ​ ​ ​ Earnings per share-diluted available to common shareholders ​ $ 0.16 ​ $ 0.05 ​ ​ 12. INCOME TAXES The components of income taxes are as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ ​ ​ ​ December 31, 2025 ​ ​ ​ December 31, 2024 Federal ​ ​ ​ ​ Current ​ $ 87,772 ​ $ — Deferred ​ 750,208 ​ 294,974 Total ​ ​ 837,980 ​ ​ 294,974 ​ ​ ​ ​ ​ State ​ ​ ​ ​ Current ​ ​ 67,326 ​ ​ 77,291 Deferred ​ 228,238 ​ 83,198 Total ​ ​ 295,564 ​ ​ 160,489 Total income tax expense ​ $ 1,133,544 ​ $ 455,463 ​ The Company’s income tax expense and deferred tax assets and liabilities reflect management’s best estimate of current and future taxes to be paid. Significant judgments and estimates are required in the determination of the consolidated income tax expense. The Company’s provision for income taxes is computed by applying a federal rate of 21.0 % and a blended state rate of approximately 5.0 % to 6.0 % to taxable income or loss after consideration of non-taxable and non-deductible items. The effective income tax rate for the three months ended December 31, 2025 was 29.5 %, as compared to 34.8 %, for the same period in 2024. Effective income tax rates are estimates and may vary from period to period due to changes in the amount of taxable income and non-deductible expenses. Major items that can affect the effective tax rate include amortization of goodwill and intangible assets and non-deductible amounts for per diem expenses. 13 Table of Contents The income tax effects of temporary differences giving rise to the deferred tax assets and liabilities are as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, 2025 ​ ​ ​ September 30, 2025 Deferred tax liabilities ​ ​ ​ ​ Property and equipment ​ $ 10,228,455 ​ $ 10,057,004 Other ​ 1,463,413 ​ 1,483,362 Total deferred tax liabilities ​ $ 11,691,868 ​ $ 11,540,366 ​ ​ ​ ​ ​ Deferred income tax assets ​ ​ ​ ​ Accruals & Other ​ $ 2,833,576 ​ $ 3,215,102 Net operating loss carryforward-Federal ​ ​ 1,100,038 ​ ​ 1,451,126 Net operating loss carryforward-States ​ ​ 730,209 ​ ​ 824,539 Net operating loss valuation allowance-States ​ ​ ( 703,928 ) ​ ​ ( 703,928 ) Total deferred tax assets ​ $ 3,959,895 ​ $ 4,786,839 ​ ​ ​ ​ ​ Total net deferred tax liabilities ​ $ 7,731,973 ​ $ 6,753,527 ​ 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. The Company had $ 5.2 million and $ 6.9 million of federal net operating loss carryforwards at December 31, 2025 and September 30, 2025, respectively. The Company had $ 26.0 million and $ 41.9 million of state net operating loss carryforwards at December 31, 2025 and September 30, 2025, respectively. The state net operating loss carryforwards begin to expire in 2026. 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. ​ 13. SHORT-TERM AND LONG-TERM DEBT Operating Line of Credit In July 2025, the Company renewed its $ 30.0 million line of credit with a maturity date of June 28, 2027. The interest rate on the line of credit is the “ Wall Street Journal ” Prime Rate (the index) with a floor of 4.99 %. The line of credit is limited to a borrowing base calculation as summarized below: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, 2025 ​ ​ ​ September 30, 2025 Eligible borrowing base ​ $ 30,000,000 ​ $ 27,657,997 ​ ​ ​ ​ ​ ​ ​ ​ ​ Borrowed on line of credit ​ 17,000,000 ​ 24,750,000 ​ ​ ​ ​ ​ ​ ​ ​ ​ Line of credit balance available ​ $ 13,000,000 ​ $ 2,907,997 ​ ​ ​ ​ ​ ​ ​ ​ ​ Interest rate ​ 6.75 % 7.50 % ​ The Company’s $ 17.0 million and $ 24.8 million line of credit borrowings are recorded as a long-term debt as of December 31, 2025 and September 30, 2025, respectively. The financial covenants required by the Company’s lender 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 , 14 Table of Contents ● 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’s lender has agreed to omit the effect of the PPP loan restatement from the Company’s covenant compliance calculations while a final decision on PPP loan forgiveness remains in question. The Company was in compliance with all covenants at December 31, 2025 except for the debt service coverage for which the Company received a waiver from its lender. The Company is projected to meet all non-waived covenant requirements for the next twelve months. 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 audited financial statements of the Company for fiscal 2022 and 2021. The Company has recorded a short-term borrowing due to the SBA inquiry for the full $ 9.8 million, plus accrued interest. 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. As of December 31, 2025, there have been no further requests or communications from the SBA relating to the PPP Loans. Borrowers must retain PPP documentation for at least six years after the date the loan is forgiven or paid in full, and the SBA and SBA Inspector General must be granted these files upon request. The SBA could revisit its forgiveness decision and determine that the Company does not qualify in whole or in part for loan forgiveness and demand repayment of the loans. In addition, it is unknown what type of penalties could be assessed against the Company if the SBA disagrees with the Company’s certification. Any penalties in addition to the potential repayment of the PPP Loans could negatively impact the Company’s business, financial condition and results of operations and prospects. 15 Table of Contents A summary of short-term and long-term debt as of December 31, 2025 and September 30, 2025 is as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, 2025 ​ ​ ​ September 30, 2025 Line of credit payable to bank, monthly interest at 6.75 %, final payment due by June 28, 2027, guaranteed by certain directors of the Company. ​ $ 17,000,000 ​ $ 24,750,000 ​ ​ ​ ​ ​ Equipment line of credit with a total of $ 9.3 million with payments of $ 202,809 due in monthly installments, including fixed interest at 7.25 % and final payment due February 2028, secured by equipment, guaranteed by certain directors of the Company. ​ ​ 5,375,481 ​ ​ 5,878,041 ​ ​ ​ ​ ​ ​ ​ 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. ​ 10,417,572 ​ 10,401,366 ​ ​ ​ ​ ​ ​ ​ Term note payable to United Bank, WV Pipeline acquisition, due in monthly installments of $ 64,853 , including fixed interest at 4.25 %, final payment due by March 25, 2026, secured by receivables and equipment, guaranteed by certain directors of the Company. ​ ​ 199,323 ​ ​ 390,328 ​ ​ ​ ​ ​ ​ ​ Notes payable to finance companies, due in monthly installments totaling $ 260,000 at December 31, 2025 and $ 244,000 at September 30, 2025, including interest ranging from 0.00 % to 6.0 %, final payments due January 2026 through November 2029, secured by equipment. ​ 5,473,704 ​ 5,415,401 ​ ​ ​ ​ ​ Notes payable to United Bank, Tribute acquisition finance, due in monthly installments totaling $ 272,016 , including fixed interest at 6.9 %, final payment due December 2030 secured by receivables and equipment, guaranteed by certain directors of the Company. ​ 13,594,831 ​ 14,164,413 ​ ​ ​ ​ ​ Notes payable to bank, due in monthly installments totaling $ 7,848 , including interest at 4.82 %, final payment due November 2034 secured by building and property. ​ 696,734 ​ 710,466 ​ ​ ​ ​ ​ Notes payable to bank, due in monthly installments totaling $ 59,932 , including fixed interest at 6.0 %, final payment due October 2027 secured by receivables and equipment, guaranteed by certain directors of the Company. ​ 1,252,707 ​ 1,411,890 ​ ​ ​ ​ ​ Equipment line of credit with a total of $ 5.0 million borrowings available, including fixed interest at 8.5 % for purchases made in the first twelve months. After twelve months the borrowings will be converted to a forty-eight month term note agreement with a fixed interest rate equal to the “U.S. Treasury Rate” plus 2.75 % per annum. Final payment due August 2029. The agreement is guaranteed by certain directors of the Company. ​ ​ 4,633,328 ​ ​ 4,910,097 ​ ​ ​ ​ ​ ​ ​ Unsecured notes payable to Joe and Cathy Rigney, five-year agreement for monthly fixed interest at 5.0 % of sellers’ notes, with $ 500,000 due September 30, 2030. $ 462,950,000 fair value at September 30, 2025. ​ ​ 462,950 ​ ​ 461,000 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, 2025, unsecured. ​ ​ — ​ ​ 500,000 ​ ​ ​ ​ ​ ​ ​ Note payable to United Bank, Tri-State Paving acquisition, due in monthly installments of $ 129,910 , including fixed interest at 4.50 %, final payment due by June 1, 2027, secured by receivables and equipment, guaranteed by certain directors of the Company. ​ ​ 2,601,883 ​ ​ 2,961,211 ​ ​ ​ ​ ​ ​ ​ 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. ​ ​ 250,000 ​ ​ 250,000 ​ ​ ​ ​ ​ ​ ​ Total debt ​ $ 61,958,513 ​ $ 72,204,213 ​ ​ ​ ​ ​ Less current maturities ​ 21,455,063 ​ 21,948,182 ​ ​ ​ ​ ​ Total long term debt ​ $ 40,503,450 ​ $ 50,256,031 ​ ​ 16 Table of Contents 14. ACQUISITIONS Energy Services accounts for business combinations under the acquisition method in accordance with ASC Topic 805 “Business Combinations”. Accordingly, for the transaction, the purchase price is allocated to the fair value of the assets acquired and liabilities assumed as of the date of the acquisition. In conjunction with ASC 805, upon receipt of final fair value estimates during the measurement period, which must be within one year of the acquisition date, Energy Services records any adjustments to the preliminary fair value estimates in the reporting period in which the adjustments are determined. On December 2, 2024, the Company completed the acquisition of substantially all the physical assets of Tribute Contracting & Consultants, LLC (“Tribute LLC”), an Ohio corporation located in South Point, Ohio for $ 21.2 million cash and $ 2.0 million in the Company’s common stock. ASC 805-10-50-2 requires public companies that present comparative financial statements to present pro forma financial statements as though the business combination that occurred during the current fiscal year had occurred as of the beginning of the comparable prior annual reporting period. As allowed under ASC 805-10-50-2, the Company finds this information impracticable to provide for the periods presented due to the lack of availability of meaningful financial statements of the acquired companies that comply with U.S. GAAP. The Tribute LLC acquisition purchase price is allocated in the table below: ​ ​ ​ ​ ​ Considerations ​ ​ ​ ​ ​ Cash ​ $ 21,158,981 Common stock issued ​ ​ 2,000,000 Total consideration ​ ​ 23,158,981 Assets acquired ​ ​ ​ Property and equipment ​ ​ 15,034,900 Accounts Receivable and Retainages acquired from seller ​ ​ 8,360,373 Contract assets acquired from seller ​ 1,715,984 Receivable for cash due to buyer ​ 1,708,846 Intangible assets ​ 1,930,000 Total assets acquired ​ ​ 28,750,103 Liabilities assumed ​ ​ ​ Accounts payable assumed ​ ( 3,476,871 ) Long-term debt assumed ​ ( 3,789,962 ) Contract liabilities assumed ​ ( 681,013 ) Total liabilities assumed ​ ​ ( 7,947,846 ) Net assets acquired ​ ​ 20,802,257 Goodwill recognized ​ $ 2,356,724 ​ ​ ​ ​ ​ On September 30, 2025, the Company completed the acquisition of substantially all the physical assets of Rigney Digital Systems Ltd. (“Rigney Digital”), a West Virginia corporation located in Hurricane, West Virginia for $ 3.0 million cash, $ 1.0 million in the Company’s common stock, and a five -year $ 500,000 sellers’ note. ASC 805-10-50-2 requires public companies that present comparative financial statements to present pro forma financial statements as though the business combination that occurred during the current fiscal year had occurred as of the beginning of the comparable prior annual reporting period. As allowed under ASC 805-10-50-2, the Company finds this information impracticable to provide for the periods presented due to the lack of availability of meaningful financial statements of the acquired companies that comply with U.S. GAAP. 17 Table of Contents The Rigney Digital acquisition purchase price is allocated in the table below: ​ ​ ​ ​ ​ Considerations ​ ​ ​ Cash ​ ​ ​ $ 3,000,000 Common stock issued ​ ​ 1,000,000 Sellers’ note ​ ​ 500,000 Total consideration ​ ​ 4,500,000 Assets acquired ​ ​ ​ Property and equipment ​ ​ 130,865 Accounts Receivable acquired from seller ​ ​ 84,194 Intangible assets ​ ​ 964,000 Total assets acquired ​ ​ 1,179,059 Liabilities assumed ​ ​ ​ Long-term debt assumed ​ ​ ( 100,585 ) Total liabilities assumed ​ ​ ( 100,585 ) Net assets acquired ​ ​ 1,078,474 Goodwill recognized ​ $ 3,421,526 ​ ​ ​ 15. GOODWILL AND INTANGIBLE ASSETS The Company follows the guidance of ASC Topic 350, Intangibles-Goodwill and Other , which requires a company to record an impairment charge based on the excess of a reporting unit’s carrying amount of goodwill over its fair value. Under the current guidance, companies can first choose to assess any impairment based on qualitative factors (Step 0). If a company fails this test or decides to bypass this step, it must proceed with a quantitative assessment of goodwill impairment. The Company did no t have a goodwill impairment at December 31, 2025 or September 30, 2025. A table of the Company’s goodwill as of December 31, 2025 and September 30, 2025 is below: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, 2025 ​ ​ ​ September 30, 2025 Beginning balance ​ $ 9,865,804 ​ $ 4,087,554 Acquired ​ — ​ 5,778,250 Ending balance ​ $ 9,865,804 ​ $ 9,865,804 ​ 18 Table of Contents A table of the Company’s intangible assets subject to amortization at December 31, 2025 and September 30, 2025 is below: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Accumulated ​ Accumulated ​ Amortization ​ Amortization ​ ​ ​ ​ ​ ​ ​ ​ Remaining Life ​ ​ ​ ​ Amortization and ​ Amortization and ​ and Impairment ​ and Impairment ​ ​ ​ ​ ​ ​ ​ (in months) at ​ ​ ​ Impairment at ​ Impairment at ​ Three Months ​ Three Months ​ Net Book Value Net Book Value ​ ​ December 31, ​ ​ ​ December 31, ​ September 30, ​ Ended December 31, ​ Ended December 31, ​ at December 31, ​ at September 30, ​ ​ ​ ​ 2025 ​ ​ ​ Original Cost ​ ​ ​ 2025 ​ ​ ​ 2025 ​ ​ ​ 2025 ​ ​ ​ 2024 ​ ​ ​ 2025 ​ ​ ​ 2025 Intangible assets: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ West Virginia Pipeline: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Customer relationships ​ 60 ​ $ 2,209,724 ​ ​ 1,104,855 ​ $ 1,049,610 ​ ​ 55,245 ​ ​ 55,245 ​ $ 1,104,869 $ 1,160,114 Tradename ​ 60 ​ ​ 263,584 ​ ​ 131,803 ​ ​ 125,215 ​ ​ 6,588 ​ ​ 6,588 ​ ​ 131,781 ​ 138,369 Non-competes — ​ 83,203 ​ 83,203 ​ 83,203 ​ — ​ ​ — ​ — ​ ​ — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Heritage Painting ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Customer relationships ​ 42 ​ ​ 121,100 ​ ​ 36,324 ​ ​ 30,270 ​ ​ 6,054 ​ ​ 6,054 ​ ​ 84,776 ​ ​ 90,830 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Tri-State Paving: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Customer relationships ​ 76 ​ ​ 1,649,159 ​ ​ 604,692 ​ ​ 563,463 ​ ​ 41,229 ​ ​ 41,229 ​ ​ 1,044,467 ​ ​ 1,085,696 Tradename ​ 76 ​ ​ 203,213 ​ ​ 74,511 ​ ​ 69,431 ​ ​ 5,080 ​ ​ 5,080 ​ ​ 128,702 ​ ​ 133,782 Non-competes ​ — ​ ​ 39,960 ​ ​ 39,960 ​ ​ 39,960 ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Tribute Contracting & Consultants ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Non-compete 1 ​ 107 ​ ​ 520,000 ​ ​ 56,332 ​ ​ 43,333 ​ ​ 12,999 ​ ​ 2,084 ​ ​ 463,668 ​ ​ 476,667 Non-compete 2 ​ 83 ​ ​ 10,000 ​ ​ 1,354 ​ ​ 1,042 ​ ​ 312 ​ ​ 2,083 ​ ​ 8,646 ​ ​ 8,958 Tradename ​ 47 ​ ​ 80,000 ​ ​ 17,332 ​ ​ 13,333 ​ ​ 3,999 ​ ​ 12,500 ​ ​ 62,668 ​ ​ 66,667 Backlog ​ 11 ​ ​ 1,320,000 ​ ​ 775,770 ​ ​ 550,000 ​ ​ 225,770 ​ ​ — ​ ​ 544,230 ​ ​ 770,000 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Rigney Digital Systems ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Tradename ​ 129 ​ ​ 657,100 ​ ​ 14,934 ​ ​ — ​ ​ 14,934 ​ ​ — ​ ​ 642,166 ​ ​ 657,100 Backlog ​ 21 ​ ​ 260,600 ​ ​ 32,574 ​ ​ — ​ ​ 32,574 ​ ​ — ​ ​ 228,026 ​ ​ 260,600 Non-compete ​ 117 ​ ​ 46,300 ​ ​ 1,158 ​ ​ — ​ ​ 1,158 ​ ​ — ​ ​ 45,142 ​ ​ 46,300 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total intangible assets ​ — ​ $ 7,463,943 ​ $ 2,974,802 ​ $ 2,568,860 ​ $ 405,942 ​ $ 130,863 ​ $ 4,489,141 ​ $ 4,895,083 ​ Amortization expense associated with the identifiable intangible assets is expected to be as follows: ​ ​ ​ ​ ​ January 2026 to December 2026 ​ ​ ​ $ 1,264,902 January 2027 to December 2027 ​ 688,106 January 2028 to December 2028 ​ 590,376 January 2029 to December 2029 ​ 576,972 January 2030 to December 2030 ​ 550,214 After ​ 818,571 Total ​ $ 4,489,141 ​ ​ 16. LEASE OBLIGATIONS The Company leases office space for SQP for $ 1,500 per month. The lease, which was originally 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. As of December 31, 2025, the Company has only committed to a one-year renewal and is evaluating whether to renew for additional periods. 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 $ 0 at December 31, 2025. The 4.5 % interest rate on the operating lease is based on the Company’s incremental borrowing rate at inception. The Company signed an amendment to extend the lease for one year after the original lease expired. As of December 31, 2025, the Company has only committed to a one-year renewal and is evaluating whether to renew for additional periods. The second operating lease, for the Chattanooga, Tennessee facility, had a net present value of $ 144,000 at inception, and expired on August 31, 2024. The lease was renewed for a two - year period with a net present value of $ 140,000 and had a carrying value of $ 30,000 at December 31, 2025. The 8.5 % interest rate on the operating lease is based on the Company’s incremental borrowing rate at inception. 19 Table of Contents The Company has a right-of-use operating lease with Enterprise 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 subsequently netted fifty additional leased vehicles. The right-of-use operating lease had a carrying value of $ 1.7 million at December 31, 2025. Each vehicle leased under the master lease program has its own implicit rate. 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 $ 17,000 at December 31, 2025. The 7.5 % 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 December 1, 2025. This lease, for the Columbus, Ohio facility, had a net present value of $ 255,000 at inception and a carrying value of $ 250,000 at December 31, 2025. The 6.75 % 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 the fiscal year ended December 31, 2025 and 2024 can be found below: Operating Lease-Weighted Average Remaining Term ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Remaining ​ ​ ​ ​ ​ ​ ​ ​ Years left ​ ​ ​ liability ​ ​ ​ Lease end ​ ​ ​ Fiscal year end Operating lease 2 0.3 ​ ​ 30,397 ​ 8/31/2026 2026 Operating lease 3 ​ 3.3 ​ ​ 1,701,664 ​ 9/30/2028 ​ 2028 Operating lease 4 ​ 0.5 ​ ​ 17,349 ​ 3/31/2026 ​ 2026 Operating lease 5 ​ 3.0 ​ ​ 249,797 ​ 11/30/2028 ​ 2029 ​ ​ ​ ​ $ 1,999,207 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted average remaining term ​ ​ ​ ​ 2.8 years ​ ​ ​ ​ ​ ​ ​ Operating Lease Maturity Schedule ​ ​ ​ January 2026 to December 2026 ​ ​ ​ $ 1,290,257 January 2027 to December 2027 ​ 727,949 January 2028 to December 2028 ​ 356,553 January 2029 to December 2029 ​ ​ 40,928 ​ ​ ​ 2,415,687 Less amounts representing interest ​ ( 416,480 ) Present value of operating lease liabilities ​ $ 1,999,207 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ Three Months Ended ​ ​ December 31, ​ December 31, Operating Lease Expense ​ ​ ​ 2025 ​ ​ ​ 2024 Amortization ​ ​ ​ ​ ​ ​ Operating lease 1 $ — ​ $ 20,691 Operating lease 2 ​ ​ 18,198 ​ ​ 17,213 Operating lease 3 ​ 237,250 ​ 195,170 Operating lease 4 ​ ​ 27,118 ​ ​ 24,502 Operating lease 5 ​ ​ 6,154 ​ ​ — Total amortization ​ ​ 288,720 ​ ​ 257,576 ​ ​ ​ ​ ​ ​ ​ Interest ​ ​ ​ ​ Operating lease 1 ​ $ — ​ $ 309 Operating lease 2 ​ 1,060 ​ 2,587 Operating lease 3 ​ ​ 42,656 ​ ​ 63,722 Operating lease 4 ​ ​ 512 ​ ​ 2,453 Operating lease 5 ​ ​ 1,441 ​ ​ — Total interest ​ ​ 45,669 ​ ​ 69,071 Total amortization and interest ​ $ 334,389 ​ $ 326,647 ​ 20 Table of Contents ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ Three Months Ended ​ ​ December 31, ​ December 31, Cash Paid for Operating Leases ​ ​ ​ 2025 ​ ​ ​ 2024 Operating lease 1 $ — ​ $ 21,000 Operating lease 2 ​ ​ 19,258 ​ ​ 19,800 Operating lease 3 ​ ​ 279,906 ​ ​ 258,892 Operating lease 4 ​ ​ 27,630 ​ ​ 26,955 Operating lease 5 ​ ​ 7,595 ​ ​ — ​ $ 334,389 ​ $ 326,647 ​ The Company rents equipment for use on construction projects with rental agreements week to week or month to month. Rental expense can vary by fiscal year due to equipment requirements on construction projects and the availability of Company owned equipment. Rental expenses, which is included in cost of goods sold on the consolidated statements of income, was $ 7.0 million and $ 5.0 million for the three months ended December 31, 2025, and 2024, respectively. ​ 17. SHARE-BASED COMPENSATION The Company has a stock-based compensation plan, under which restricted stock awards are available for issuance to eligible participants. Non-cash stock-based compensation expense is included within general and administrative expense in the consolidated financial statements. Share-based payments are recognized based on their grant date fair values. Forfeitures are recorded as they occur. Grants of restricted stock awards are valued based on the closing market share price of the Company’s common stock as reported on the Nasdaq Stock Market, LLC (the “market price”) on the date of grant. Non-cash-based compensation expense arising from restricted shares is recognized on a straight-line basis over the vesting period. Grants of restricted shares generally vest one -third annually over a period of three years . Some participants may choose the net share settlement method to cover withholding tax requirements, in which case shares withheld for taxes are not issued, but are treated as common stock repurchases in the consolidated financial statements, as they reduce the number of shares that would have been issued upon vesting. The Company then pays the corresponding withholding taxes to the appropriate taxing authorities in cash on behalf of the recipient. Withheld shares, which are valued at the market price on the date of grant, are recorded as a reduction to additional paid-in capital, and related payments to taxing authorities are reflected within financing activities in the consolidated statements of cash flows. For the three months ended December 31, 2025 and 2024, the Company granted 11,251 and 0 shares, respectively, related to restricted stock awards. The table below represents all unvested restricted stock awards at December 31, 2025: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Vesting (1/3 Annual) ​ ​ ​ at December 31, 2025 ​ ​ ​ ​ Grant Date ​ ​ ​ Shares Granted ​ ​ ​ Grant Price ​ ​ ​ Grant Value ​ ​ ​ Beginning ​ ​ ​ Ending ​ ​ ​ Unvested Shares ​ ​ ​ Unvested Value Award 1 ​ 2/15/2023 ​ 40,000 ​ $ 2.65 ​ $ 106,000 ​ 2/15/2024 ​ 2/15/2026 ​ 13,333 ​ $ 35,332 Award 2 1/17/2024 3,663 ​ $ 5.46 ​ $ 20,000 1/17/2025 1/17/2027 2,442 ​ $ 13,333 Award 3 6/20/2024 6,684 ​ $ 7.48 ​ $ 50,000 6/20/2025 6/20/2027 4,456 ​ $ 33,333 Award 4 8/21/2024 10,153 ​ $ 9.85 ​ $ 100,007 8/21/2025 8/21/2027 6,768 ​ $ 66,665 Award 5 8/21/2024 4,061 ​ $ 9.85 ​ $ 40,001 8/21/2025 8/21/2027 2,707 ​ $ 26,664 Award 6 1/15/2025 1,985 ​ $ 12.60 ​ $ 25,011 1/15/2026 1/15/2028 1,985 ​ $ 25,011 Award 7 1/15/2025 1,985 ​ $ 12.60 ​ $ 25,011 1/15/2026 1/15/2028 1,985 ​ $ 25,011 Award 8 11/18/2025 5,291 ​ $ 9.45 ​ $ 50,000 11/18/2026 11/18/2028 5,291 ​ $ 50,000 Award 9 12/17/2025 2,980 ​ $ 8.39 ​ $ 25,002 12/17/2026 12/17/2028 2,980 ​ $ 25,002 Award 10 12/17/2025 2,980 ​ $ 8.39 ​ $ 25,002 12/17/2026 12/17/2028 2,980 ​ $ 25,002 ​ ​ ​ 79,782 ​ ​ ​ ​ $ 466,034 ​ ​ ​ ​ ​ 44,927 ​ ​ 325,353 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted average grant-date fair value ​ ​ ​ ​ ​ $ 5.84 ​ ​ ​ ​ ​ ​ ​ ​ 21 Table of Contents The table below represents all restricted stock awards to Named Executive Officers as of December 31, 2025: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Vesting (1/3 Annual) ​ ​ ​ at December 31, 2025 ​ ​ ​ ​ Grant Date ​ ​ ​ Shares Granted ​ ​ ​ Grant Price ​ ​ ​ Grant Value ​ ​ ​ Beginning ​ ​ ​ Ending ​ ​ ​ Unvested Shares ​ ​ ​ Unvested Value Douglas Reynolds ​ 2/15/2023 ​ 40,000 ​ $ 2.65 ​ $ 106,000 ​ 2/15/2024 ​ 2/15/2026 ​ 13,333 ​ $ 35,332 Charles Crimmel 1/17/2024 3,663 ​ $ 5.46 ​ $ 20,000 1/17/2025 1/17/2027 2,442 ​ $ 13,333 Douglas Reynolds 8/21/2024 4,061 ​ $ 9.85 ​ $ 40,001 8/21/2025 8/21/2027 2,707 ​ $ 26,664 Charles Crimmel 1/15/2025 1,985 ​ $ 12.60 ​ $ 25,011 1/15/2026 1/15/2028 1,985 ​ $ 25,011 ​ ​ ​ 49,709 ​ ​ ​ $ 191,012 ​ ​ ​ ​ ​ 20,467 ​ 100,340 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted average grant-date fair value ​ ​ ​ ​ ​ $ 3.84 ​ ​ ​ ​ ​ ​ ​ ​ The table below represents the total unvested restricted stock awards and grant amounts that will vest in future periods at December 31, 2025: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Grant Vesting ​ ​ ​ Grant Amount January 2026-December 2026 ​ 26,596 ​ $ 155,367 January 2027-December 2027 ​ 13,260 ​ ​ 120,008 January 2028-December 2028 5,071 ​ 49,978 ​ 44,927 ​ $ 325,353 ​ The table below represents the total unrecognized compensation expense for unvested restricted stock awards to be expensed in future periods at December 31, 2025: ​ ​ ​ ​ ​ January 2026-December 2026 ​ ​ ​ $ 124,428 January 2027-December 2027 ​ ​ 87,991 January 2028-December 2028 ​ 31,252 ​ ​ $ 243,671 ​ ​ 18. SUBSEQUENT EVENTS On January 15, 2026, the Company paid a quarterly dividend of $ 0.03 per common share to shareholders of record as of December 31, 2025. 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. ​ 22 Table of Contents