Energy Services of America CORP 10-Q

Item 1. Financial Statements (Unaudited): Energy Services of America Corporation Consolidated Balance Sheets Unaudited ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ March 31, ​ September 30, ​ 2025 2024 Assets ​ ​ ​ ​ ​ ​ Current assets ​ ​ ​ ​ Cash and cash equivalents ​ $ 9,926,233 ​ $ 12,926,036 Accounts receivable-trade ​ 52,192,127 ​ 56,802,844 Allowance for doubtful accounts ​ ( 700,875 ) ​ ( 738,526 ) Retainage receivable ​ 13,875,525 ​ 11,704,281 Other receivables ​ 1,071,148 ​ 1,047,952 Contract assets ​ 22,730,681 ​ 24,595,792 Prepaid expenses and other ​ 5,109,372 ​ 4,088,550 Total current assets ​ 104,204,211 ​ 110,426,929 ​ ​ ​ ​ ​ Property, plant and equipment, at cost ​ 109,694,928 ​ 91,885,621 less accumulated depreciation ​ ( 57,373,351 ) ​ ( 53,749,907 ) Total fixed assets ​ 52,321,577 ​ 38,135,714 ​ ​ ​ ​ ​ ​ ​ Right-of-use assets-operating leases ​ ​ 2,500,651 ​ ​ 2,531,227 Intangible assets, net ​ ​ 3,770,516 ​ ​ 3,065,576 Goodwill ​ ​ 7,428,761 ​ ​ 4,087,554 Total assets ​ $ 170,225,716 ​ $ 158,247,000 ​ ​ ​ ​ ​ Liabilities and shareholders’ equity ​ ​ ​ ​ Current liabilities ​ ​ ​ ​ Current maturities of long-term debt ​ $ 9,748,583 ​ $ 6,372,915 Current maturities of lines of credit and short term borrowings ​ 10,342,414 ​ 10,292,676 Current maturities of operating lease liabilities ​ ​ 1,125,208 ​ ​ 907,503 Accounts payable ​ 22,588,996 ​ 23,673,659 Accrued expenses and other current liabilities ​ 12,747,922 ​ 13,855,533 Contract liabilities ​ 22,943,069 ​ 16,950,988 Income tax payable ​ 304,203 ​ 2,195,278 Total current liabilities ​ 79,800,395 ​ 74,248,552 ​ ​ ​ ​ ​ Long-term debt, less current maturities ​ 30,614,888 ​ 17,187,992 Long-term operating lease liabilities, less current maturities ​ ​ 1,379,877 ​ ​ 1,625,424 Deferred tax liability ​ 4,651,007 ​ 6,490,888 Total liabilities ​ 116,446,167 ​ 99,552,856 ​ ​ ​ ​ Shareholders’ equity ​ ​ Common stock, $ .0001 par value Authorized 50,000,000 shares, 18,006,537 issued and 16,716,809 outstanding at March 31, 2025 and 17,860,413 issued and 16,570,685 outstanding at September 30, 2024 ​ 1,804 ​ 1,790 Treasury stock, 1,289,728 shares at March 31, 2025 and September 30, 2024 ​ ( 133 ) ​ ( 133 ) Additional paid in capital ​ 62,315,665 ​ 60,282,921 Retained deficit ​ ( 8,537,787 ) ​ ( 1,590,434 ) Total shareholders’ equity ​ 53,779,549 ​ 58,694,144 Total liabilities and shareholders’ equity ​ $ 170,225,716 ​ $ 158,247,000 ​ 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 ​ Six Months Ended ​ Six Months Ended ​ ​ March 31, ​ March 31, ​ March 31, ​ March 31, ​ 2025 2024 2025 2024 Revenue ​ $ 76,679,151 ​ $ 71,127,655 ​ $ 177,325,265 ​ $ 161,290,842 ​ ​ ​ ​ ​ ​ ​ ​ ​ Cost of revenue ​ 76,601,291 ​ 64,888,101 ​ 166,983,823 ​ 144,212,327 ​ ​ ​ ​ ​ ​ ​ ​ ​ Gross profit ​ 77,860 ​ 6,239,554 ​ 10,341,442 ​ 17,078,515 ​ ​ ​ ​ ​ ​ ​ ​ ​ Selling and administrative expenses ​ 8,170,087 ​ 7,321,951 ​ 16,787,708 ​ 14,520,671 (Loss) income from operations ​ ( 8,092,227 ) ​ ( 1,082,397 ) ​ ( 6,446,266 ) ​ 2,557,844 ​ ​ ​ ​ ​ ​ ​ ​ ​ Other income (expense) ​ ​ ​ ​ ​ ​ ​ ​ Other nonoperating expense ​ ( 20,616 ) ​ ( 81,490 ) ​ ( 68,878 ) ​ ( 6,489 ) Interest expense ​ ​ ( 875,770 ) ​ ​ ( 622,916 ) ​ ​ ( 1,359,488 ) ​ ​ ( 1,224,600 ) (Loss) gain on sale of equipment ​ ( 16,540 ) ​ 304,923 ​ 179,242 ​ 291,595 ​ ​ ( 912,926 ) ​ ( 399,483 ) ​ ( 1,249,124 ) ​ ( 939,494 ) ​ ​ ​ ​ ​ ​ ​ ​ ​ (Loss) gain before income taxes ​ ( 9,005,153 ) ​ ( 1,481,880 ) ​ ( 7,695,390 ) ​ 1,618,350 ​ ​ ​ ​ ​ ​ ​ ​ ​ Income tax (benefit) expense ​ ( 2,206,735 ) ​ ( 373,052 ) ​ ( 1,750,705 ) ​ 684,983 ​ ​ ​ ​ ​ ​ ​ ​ ​ Net (loss) income ​ ​ ( 6,798,418 ) ​ ​ ( 1,108,828 ) ​ ​ ( 5,944,685 ) ​ ​ 933,367 ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted average shares outstanding-basic ​ 16,716,809 ​ 16,569,871 ​ 16,630,245 ​ 16,567,853 ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted average shares-diluted ​ 16,716,809 ​ 16,569,871 ​ 16,630,245 ​ 16,606,075 ​ ​ ​ ​ ​ ​ ​ ​ ​ (Loss) earnings per share available to common shareholders ​ $ ( 0.41 ) ​ $ ( 0.07 ) ​ $ ( 0.36 ) ​ $ 0.06 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (Loss) earnings per share-diluted available to common shareholders ​ $ ( 0.41 ) ​ $ ( 0.07 ) ​ $ ( 0.36 ) ​ $ 0.06 ​ 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 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Six Months Ended ​ Six Months Ended ​ ​ March 31, ​ March 31, ​ 2025 2024 Cash flows from operating activities: ​ ​ Net (loss) income ​ $ ( 5,944,685 ) ​ $ 933,367 ​ ​ ​ ​ ​ ​ ​ Adjustments to reconcile net (loss) Income to net cash provided by operating activities: ​ ​ ​ ​ ​ Depreciation expense ​ ​ 5,586,230 ​ 4,181,948 Accreted interest on PPP loans ​ 49,738 ​ 50,172 Gain on sale of equipment ​ ( 179,242 ) ​ ( 291,595 ) Provision for deferred taxes ​ ​ ( 1,839,881 ) ​ ​ 331,364 Amortization of intangible assets ​ ​ 295,060 ​ ​ 216,284 Accreted interest on note payable ​ ​ 25,000 ​ ​ 30,186 Vested stock grants ​ ​ 32,758 ​ ​ 35,556 Decrease in accounts receivable-trade ​ ​ 10,162,409 ​ ​ 4,846,672 Decrease (increase) in retainage receivable ​ ​ 599,786 ​ ​ ( 2,511,449 ) Decrease (increase) in other receivables ​ 1,389,784 ​ ( 330,338 ) Decrease in contract assets ​ ​ 3,581,095 ​ ​ 1,306,839 Increase in prepaid expenses and other ​ ​ ( 1,020,822 ) ​ ​ ( 1,586,692 ) Decrease in accounts payable ​ ( 4,561,534 ) ​ ( 3,357,277 ) Decrease in accrued expenses and other current liabilities ​ ( 3,497,456 ) ​ ( 2,237,438 ) Increase (decrease) in contract liabilities ​ 5,311,068 ​ ( 1,434,485 ) Net cash provided by operating activities ​ 9,989,308 ​ 183,114 ​ ​ ​ ​ ​ Cash flows from investing activities: ​ ​ ​ ​ Investment in property and equipment ​ ( 5,087,101 ) ​ ( 3,586,106 ) Acquistion of Tribute Contracting & Consultants, net of cash aquired ​ ​ ( 20,783,224 ) ​ ​ — Proceeds from sales of property and equipment ​ 596,314 ​ 943,938 Net cash used in investing activities ​ ( 25,274,011 ) ​ ( 2,642,168 ) ​ ​ ​ ​ ​ ​ 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) ​ ​ 1,250,000 ​ ​ 2,636,849 Cash dividend on common stock ​ ​ ( 501,164 ) ​ ​ ( 994,031 ) Principal payments on long-term debt ​ ​ ( 4,463,936 ) ​ ​ ( 3,523,870 ) Net cash provided by (used in) financing activities ​ 12,284,900 ​ ( 1,881,052 ) Decrease in cash and cash equivalents ​ ( 2,999,803 ) ​ ( 4,340,106 ) Cash and cash equivalents beginning of period ​ 12,926,036 ​ 16,431,572 Cash and cash equivalents end of period ​ $ 9,926,233 ​ $ 12,091,466 ​ ​ ​ ​ ​ Supplemental schedule of noncash investing and financing activities: ​ ​ ​ ​ Purchases of property & equipment under financing agreements ​ $ 201,538 ​ $ 1,696,530 Net operating lease right-of-use assets received in exchange for operating lease liabilities ​ $ 506,305 ​ $ ( 2,846 ) Common dividends declared but not paid ​ $ 501,504 ​ $ — Common stock issued in Tribute Contracting & Consultants acquisition ​ $ 2,000,000 ​ $ — ​ ​ ​ ​ ​ Supplemental disclosures of cash flows information: ​ ​ ​ ​ Cash paid during the period for: ​ ​ ​ ​ Interest ​ $ 1,232,072 ​ $ 1,169,311 Income taxes ​ $ 1,170,000 ​ $ 1,153,934 ​ 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 and six months ended March 31, 2025 and 2024 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 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 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net loss — ​ ​ — ​ ​ — ​ ​ ( 6,798,418 ) ​ ​ — ​ ​ ( 6,798,418 ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Dividends on common stock ($ 0.03 per share on 16,716,809 shares) ​ — ​ ​ — ​ ​ — ​ ​ ( 501,504 ) ​ ​ — ​ ​ ( 501,504 ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Vested restricted stock award ​ 11,352 ​ ​ 1 ​ ​ 32,757 ​ ​ — ​ ​ — ​ ​ 32,758 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Balance at March 31, 2025 16,716,809 ​ $ 1,804 ​ $ 62,315,665 ​ $ ( 8,537,787 ) ​ $ ( 133 ) ​ $ 53,779,549 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total ​ ​ Common Stock ​ Additional Paid ​ Retained ​ Treasury ​ Shareholders’ ​ Shares Amount in Capital Deficit Stock Equity Balance at September 30, 2023 ​ 16,567,185 ​ $ 1,789 ​ $ 60,288,745 ​ $ ( 25,701,413 ) ​ $ ( 132 ) ​ $ 34,588,989 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net income ​ — ​ ​ — ​ ​ — ​ ​ 2,042,195 ​ ​ — ​ ​ 2,042,195 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Dividends on common stock ($ 0.06 per share on 16,567,185 shares) ​ — ​ ​ — ​ ​ — ​ ​ ( 994,031 ) ​ ​ — ​ ​ ( 994,031 ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Balance at December 31, 2023 ​ 16,567,185 ​ $ 1,789 ​ $ 60,288,745 ​ $ ( 24,653,249 ) ​ $ ( 132 ) ​ $ 35,637,153 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net loss ​ — ​ ​ — ​ ​ — ​ ​ ( 1,108,828 ) ​ ​ — ​ ​ ( 1,108,828 ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Vested restricted stock award ​ 10,401 ​ ​ 1 ​ ​ 35,555 ​ ​ — ​ ​ — ​ ​ 35,556 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Balance at March 31, 2024 ​ 16,577,586 ​ $ 1,790 ​ $ 60,324,300 ​ $ ( 25,762,077 ) ​ $ ( 132 ) ​ $ 34,563,881 ​ 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 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. Nitro Electric Company, LLC (“Nitro Electric”), a wholly owned subsidiary of NCS, performs industrial electrical work and has 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”. Revolt Energy, LLC (“Revolt”), formerly a wholly owned subsidiary of NCS, that performed residential solar installations projects, was sold for a nominal consideration on March 1, 2025 in a transaction that was not material to the Company’s Consolidated Financial Statements. 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. (“TSP” or “Tri-State Paving”), a wholly owned subsidiary of Energy Services, completed the acquisition of substantially all the assets of Tri-State Paving & Sealcoating, LLC (“Tri-State Paving, LLC”) on April 29, 2022. Tri-State Paving provides utility paving services to water distribution customers in the Charleston, West Virginia, Lexington, Kentucky, and Chattanooga, Tennessee markets. 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, 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, Tennessee, and Pennsylvania. The employees of RCS are non-union and are managed independently of the Company’s union subsidiaries. 6 Table of Contents Tribute Contracting & Consultants, Inc. (“Tribute” or “TCC”), a wholly owned subsidiary of Energy Services, was formed in October 2024 in connection with the acquisition of substantially all the assets of Tribute Contracting & Consultants, LLC (“Tribute LLC”). The acquisition of Tribute LLC closed on December 2, 2024. Tribute constructs water distribution and wastewater systems primarily for public municipalities in West Virginia, Ohio, and Kentucky. The employees of TCC 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, 2024, and 2023 included in the Company’s Annual Report on Form 10-K filed with the SEC on December 19, 2024. 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 six months ended March 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. 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, 2024, for a more detailed discussion of our significant accounting policies. There were no material changes to these significant accounting policies during the three and six months ended March 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 7 Table of Contents 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. 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 ● 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. 8 Table of Contents 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. 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 six months ended March 31, 2025 and 2024: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended March 31, 2025 ​ ​ ​ ​ ​ ​ Electrical, ​ ​ ​ ​ Gas & Water ​ Gas & Petroleum ​ Mechanical, & ​ Total revenue ​ Distribution Transmission General from contracts Lump sum contracts ​ $ — ​ $ — ​ $ 34,195,376 ​ $ 34,195,376 Unit price contracts ​ 27,101,115 ​ 3,116,781 ​ 970,926 ​ 31,188,822 Cost plus and T&M contracts ​ — ​ 278,277 ​ 11,016,676 ​ 11,294,953 Total revenue from contracts ​ $ 27,101,115 ​ $ 3,395,058 ​ $ 46,182,978 ​ $ 76,679,151 ​ ​ ​ ​ ​ ​ ​ ​ ​ Earned over time ​ $ 18,473,790 ​ $ 3,116,781 ​ $ 35,811,712 ​ $ 57,402,283 Earned at point in time ​ 8,627,325 ​ 278,277 ​ 10,371,266 ​ 19,276,868 Total revenue from contracts ​ $ 27,101,115 ​ $ 3,395,058 ​ $ 46,182,978 ​ $ 76,679,151 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Six Months Ended March 31, 2025 ​ ​ ​ ​ ​ ​ Electrical, ​ ​ ​ ​ ​ Gas &Water ​ Gas & Petroleum ​ Mechanical, & ​ Total revenue ​ Distribution Transmission General from contracts Lump sum contracts ​ $ — ​ $ — ​ $ 71,929,199 ​ $ 71,929,199 Unit price contracts ​ 58,401,124 ​ 21,535,098 ​ 1,964,321 ​ 81,900,543 Cost plus and T&M contracts ​ — ​ 316,177 ​ 23,179,346 ​ 23,495,523 Total revenue from contracts ​ $ 58,401,124 ​ $ 21,851,275 ​ $ 97,072,866 ​ $ 177,325,265 ​ ​ ​ ​ ​ ​ Earned over time ​ $ 37,960,995 ​ $ 21,535,098 ​ $ 74,493,813 ​ $ 133,989,906 Earned at point in time ​ 20,440,129 ​ 316,177 ​ 22,579,053 ​ 43,335,359 Total revenue from contracts ​ $ 58,401,124 ​ $ 21,851,275 ​ $ 97,072,866 ​ $ 177,325,265 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended March 31, 2024 ​ Gas & Water Gas & Petroleum Electrical, Mechanical, Total revenue ​ ​ Distribution ​ Transmission ​ & General ​ from contracts Lump sum contracts $ — $ — $ 26,943,941 $ 26,943,941 Unit price contracts ​ ​ 14,273,691 ​ ​ 9,044,955 ​ ​ 448,175 ​ ​ 23,766,821 Cost plus and T&M contracts ​ ​ — ​ ​ 718,123 ​ ​ 19,698,770 ​ ​ 20,416,893 Total revenue from contracts $ 14,273,691 $ 9,763,078 $ 47,090,886 $ 71,127,655 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Earned over time $ 5,768,688 $ 9,044,955 ​ $ 32,913,922 $ 47,727,565 Earned at point in time ​ ​ 8,505,003 ​ ​ 718,123 ​ ​ 14,176,964 ​ ​ 23,400,090 Total revenue from contracts $ 14,273,691 $ 9,763,078 $ 47,090,886 $ 71,127,655 9 Table of Contents ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Six Months Ended March 31, 2024 ​ Gas & Water Gas & Petroleum Electrical, Mechanical, Total revenue ​ ​ Distribution ​ Transmission ​ & General ​ from contracts Lump sum contracts $ — $ — $ 55,632,971 $ 55,632,971 Unit price contracts ​ ​ 31,356,586 ​ ​ 36,893,140 ​ ​ 2,710,870 ​ ​ 70,960,596 Cost plus and T&M contracts ​ ​ — ​ ​ 1,433,181 ​ ​ 33,264,094 ​ ​ 34,697,275 Total revenue from contracts $ 31,356,586 $ 38,326,321 $ 91,607,935 $ 161,290,842 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Earned over time $ 10,141,271 $ 36,893,140 $ 63,141,836 $ 110,176,247 Earned at point in time ​ ​ 21,215,315 ​ ​ 1,433,181 ​ ​ 28,466,099 ​ ​ 51,114,595 Total revenue from contracts $ 31,356,586 $ 38,326,321 $ 91,607,935 $ 161,290,842 ​ ​ ​ 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 six months ended March 31, 2025, we recognized revenue of $ 6.8 million and $ 16.9 million, respectively, that was included in the contract liability balance at September 30, 2024. Accounts receivable-trade, net of allowance for doubtful accounts, contract assets and contract liabilities consisted of the following: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ March 31, 2025 September 30, 2024 Change Accounts receivable-trade, net of allowance for doubtful accounts ​ $ 51,491,252 ​ $ 56,064,318 ​ $ ( 4,573,066 ) ​ ​ ​ ​ Contract assets ​ ​ ​ Cost and estimated earnings in excess of billings ​ $ 22,730,681 ​ $ 24,595,792 ​ $ ( 1,865,111 ) ​ ​ ​ ​ ​ ​ Contract liabilities ​ ​ ​ ​ ​ Billings in excess of cost and estimated earnings ​ $ 22,943,069 ​ $ 16,950,988 ​ $ 5,992,081 ​ ​ 7. PERFORMANCE OBLIGATIONS For the three and six months ended March 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, 2024. Changes in contract transaction price can result from items such as executed or estimated change orders, and unresolved contract modifications and claims. At March 31, 2025, the Company had $ 223.2 million in remaining unsatisfied performance obligations, in which revenue is expected to be recognized over the next twelve months. ​ 10 Table of Contents 8. UNCOMPLETED CONTRACTS Costs, estimated earnings, and billings on uncompleted contracts as of March 31, 2025 and September 30, 2024, are summarized as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ March 31, 2025 September 30, 2024 Costs incurred on contracts in progress ​ $ 442,221,547 ​ $ 347,180,901 Estimated earnings, net of estimated losses ​ 66,170,208 ​ 59,349,378 ​ ​ 508,391,755 ​ 406,530,279 Less billings to date ​ 508,604,143 ​ 398,885,475 ​ ​ $ ( 212,388 ) ​ $ 7,644,804 ​ ​ ​ ​ ​ ​ ​ Costs and estimated earnings in excess of billed on uncompleted contracts ​ $ 22,730,681 ​ $ 24,595,792 ​ ​ ​ ​ ​ ​ ​ Less billings in excess of costs and estimated earnings on uncompleted contracts ​ 22,943,069 ​ 16,950,988 ​ ​ ​ ​ ​ ​ ​ ​ ​ $ ( 212,388 ) ​ $ 7,644,804 ​ The Company’s unaudited backlog at March 31, 2025 and September 30, 2024 was $ 280.7 million and $ 243.2 million, respectively. ​ 9. 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 including 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 March 31, 2025 was $ 40.0 million. The fair value of the aggregate principal amount of the Company’s fixed-rate debt of $ 25.6 million at September 30, 2024 was $ 24.7 million. 11 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. ​ 10. EARNINGS PER SHARE The amounts used to compute the earnings per share for the three and six months ended March 31, 2025 and 2024 are summarized below. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended Three Months Ended Six Months Ended Six Months Ended ​ ​ March 31, 2025 ​ March 31, 2024 ​ March 31, 2025 ​ March 31, 2024 Net (loss) income ​ $ ( 6,798,418 ) ​ $ ( 1,108,828 ) ​ $ ( 5,944,685 ) ​ $ 933,367 ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted average shares outstanding-basic ​ 16,716,809 ​ 16,569,871 ​ 16,630,245 ​ 16,567,853 ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted average shares outstanding-diluted ​ 16,716,809 ​ 16,569,871 ​ 16,630,245 ​ 16,606,075 ​ ​ ​ ​ ​ ​ ​ ​ ​ (Loss) Earnings per share available to common shareholders ​ $ ( 0.41 ) ​ $ ( 0.07 ) ​ $ ( 0.36 ) ​ $ 0.06 ​ ​ ​ ​ ​ ​ ​ ​ ​ (Loss) earnings per share available to common shareholders-diluted ​ $ ( 0.41 ) ​ $ ( 0.07 ) ​ $ ( 0.36 ) ​ $ 0.06 ​ ​ 11. INCOME TAXES The components of income taxes are as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ Six Months Ended ​ March 31, 2025 March 31, 2024 March 31, 2025 March 31, 2024 Federal ​ ​ ​ ​ Current ​ $ — ​ $ — ​ $ — ​ $ 140,882 Deferred ​ ( 1,687,935 ) ​ ( 286,811 ) ​ ( 1,392,961 ) ​ 389,140 Total ​ ​ ( 1,687,935 ) ​ ​ ( 286,811 ) ​ ( 1,392,961 ) ​ 530,022 ​ ​ ​ ​ ​ ​ ​ State ​ ​ ​ ​ ​ ​ Current ​ ​ 11,317 ​ ​ — ​ ​ 89,175 ​ 45,203 Deferred ​ ( 530,117 ) ​ ( 86,241 ) ​ ( 446,919 ) ​ 109,758 Total ​ ​ ( 518,800 ) ​ ​ ( 86,241 ) ​ ( 357,744 ) ​ 154,961 Total income tax (benefit) expense ​ $ ( 2,206,735 ) ​ $ ( 373,052 ) ​ $ ( 1,750,705 ) ​ $ 684,983 ​ 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 March 31, 2025 was ( 24.5 )%, as compared to ( 25.2 )%, for the same period in 2024. The effective income tax rate for the six months ended March 31, 2025 was ( 22.8 )%, as compared to 42.3 %, 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. 12 Table of Contents The income tax effects of temporary differences giving rise to the deferred tax assets and liabilities are as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ March 31, 2025 September 30, 2024 Deferred tax liabilities ​ ​ Property and equipment ​ $ 9,013,073 ​ $ 7,437,645 Other ​ 1,539,368 ​ 1,509,487 Total deferred tax liabilities ​ $ 10,552,441 ​ $ 8,947,132 ​ ​ ​ ​ ​ Deferred income tax assets ​ ​ ​ ​ Accruals & Other ​ $ 2,640,195 ​ $ 2,325,671 Net operating loss carry forward-Federal ​ ​ 2,681,218 ​ ​ — Net operating loss carryforward-States ​ ​ 1,112,996 ​ ​ 663,548 Net operating loss valuation allowance-States ​ ​ ( 532,975 ) ​ ​ ( 532,975 ) Total deferred tax assets ​ $ 5,901,434 ​ $ 2,456,244 ​ ​ ​ ​ ​ Total net deferred tax liabilities ​ $ 4,651,007 ​ $ 6,490,888 ​ 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 $ 12.8 million and $ 0 million of federal net operating loss carryforwards at March 31, 2025 and September 30, 2024, respectively. The Company had $ 52.0 million and $ 20.5 million of state net operating loss carryforwards at March 31, 2025 and September 30, 2024, respectively. The state net operating loss carryforwards begin to expire in 2025. The increases in federal and state NOL carryforwards were primarily due to a temporary difference resulting from bonus depreciation on equipment obtained as part of the Tribute acquisition. 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. ​ 12. SHORT-TERM AND LONG-TERM DEBT Operating Line of Credit On August 8, 2024, the Company renewed its $ 30.0 million line of credit with a maturity date of June 28, 2026. 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: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ March 31, 2025 September 30, 2024 Eligible borrowing base ​ $ 18,233,667 ​ $ 25,089,446 ​ ​ ​ ​ ​ ​ ​ ​ ​ Borrowed on line of credit ​ 5,750,000 ​ 4,500,000 ​ ​ ​ ​ ​ ​ ​ ​ ​ Line of credit balance available ​ $ 12,483,667 ​ $ 20,589,446 ​ ​ ​ ​ ​ ​ ​ ​ ​ Interest rate ​ 7.5 % 8.0 % ​ The Company’s $ 5.8 million and $ 4.5 million line of credit borrowings are recorded as a long-term debt as of March 31, 2025 and September 30, 2024, respectively. 13 Table of Contents 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 , ● 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 March 31, 2025. The Company projects to meet all 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 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. 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. 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. 14 Table of Contents Short and Long - Term Debt A summary of short-term and long-term debt as of March 31, 2025 and September 30, 2024 is as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ March 31, 2025 September 30, 2024 Line of credit payable to bank, monthly interest at 7.5 %, final payment due by June 28, 2026, guaranteed by certain directors of the Company. ​ $ 5,750,000 ​ $ 4,500,000 ​ ​ ​ ​ ​ 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. ​ ​ 6,857,224 ​ $ 7,802,313 ​ ​ ​ ​ ​ ​ ​ 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. ​ 10,342,414 ​ 10,292,676 ​ ​ ​ ​ ​ ​ ​ 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. ​ ​ 766,096 ​ ​ 1,134,185 ​ ​ ​ ​ ​ ​ ​ Notes payable to finance companies, due in monthly installments totaling $ 192,000 at March 31, 2025 and $ 76,000 at September 30, 2024, including interest ranging from 0.00 % to 6.0 %, final payments due April 2025 through September 2028, secured by equipment. ​ 4,871,454 ​ 1,787,009 ​ ​ ​ ​ ​ 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. ​ 15,276,678 ​ — ​ ​ ​ ​ ​ 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. ​ 737,025 ​ 762,670 ​ ​ ​ ​ ​ 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. ​ 1,722,592 ​ 2,024,847 ​ ​ ​ ​ ​ 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. ​ ​ 465,000 ​ ​ 940,000 ​ ​ ​ ​ ​ ​ ​ 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. ​ ​ 3,667,402 ​ ​ 4,359,883 ​ ​ ​ ​ ​ ​ ​ 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 ​ $ 50,705,885 ​ $ 33,853,583 ​ ​ ​ ​ ​ Less current maturities ​ 20,090,997 ​ 16,665,591 ​ ​ ​ ​ ​ Total long term debt ​ $ 30,614,888 ​ $ 17,187,992 ​ ​ 15 Table of Contents 13. ACQUISITIONS On December 2, 2024, the Company completed the acquisition of Tribute Contracting & Consultants, LLC (“Tribute LLC”), located in South Point, Ohio. Pursuant to the Asset Purchase Agreement (“Agreement”) signed on October 31, 2024, the Company acquired substantially all the assets (including but not limited to customer contracts, employees, account receivable and equipment) of Tribute LLC for $ 22.0 million in cash at closing, less an initial $ 1.2 million working capital adjustment, and $ 2.0 million in Energy Services Common Stock (“Stock”). Of the $ 20.8 million paid in cash, $ 16.0 million was funded by a loan from United Bank, Inc., Huntington, West Virginia. The final working capital adjustment was reduced by $ 296,000 , which was deducted from the approximately $ 2.0 million receivable for cash due to the Company. Todd Harrah and Tom Enyart (the “Sellers”) continued their employment with the Company’s new subsidiary, Tribute Contracting & Consultants, Inc. (“Tribute”). The Sellers each received $ 1.0 million in Stock pursuant to an exemption under the Securities Act of 1933. Based on the market value calculation in the Agreement, the Sellers each received 67,386 shares of Stock. Tribute earned revenues of $ 6.2 million and $ 7.9 million for the three and six months ended March 31, 2025, respectively. 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. The Company is continuing to finalize the purchase price allocations related to the Tribute LLC acquisition. The preliminary purchase price for the Tribute LLC acquisition is allocated in the table below: ​ ​ ​ ​ ​ Accounts Receivable and Retainages acquired from seller $ 8,360,373 Receivable for cash due to buyer ​ 1,708,847 Contract assets acquired from seller ​ 1,715,984 Equipment ​ 14,250,526 Land and Building ​ 650,000 Goodwill ​ 3,341,207 Intangible assets ​ 1,000,000 Accounts payable assumed ​ ( 3,476,871 ) Long-term debt assumed ​ ( 3,789,962 ) Contract liabilities assumed ​ ( 681,013 ) ​ ​ $ 23,079,091 ​ ASC 805-10-50-2 requires public companies that present comparative financial statements to present pro forma financial statements as though the business combination that occurred during the current fiscal year had occurred as of the beginning of the comparable prior annual reporting period. As allowed under ASC 805-10-50-2, the Company finds this information impracticable to provide for the interim periods presented due to the lack of availability of meaningful financial statements of the acquired company that comply with U.S. GAAP. 16 Table of Contents 14. 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 March 31, 2025 or September 30, 2024. A table of the Company’s goodwill as of March 31, 2025 and September 30, 2024 is below: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ March 31, 2025 September 30, 2024 Beginning balance ​ $ 4,087,554 ​ $ 4,087,554 Acquired ​ 3,341,207 ​ — Ending balance ​ $ 7,428,761 ​ $ 4,087,554 ​ A table of the Company’s intangible assets subject to amortization is below: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Accumulated ​ Accumulated ​ Amortization ​ Amortization ​ Amortization ​ Amortization ​ ​ ​ ​ ​ ​ ​ ​ Remaining Life ​ ​ ​ ​ Amortization and ​ Amortization and ​ and Impairment ​ and Impairment ​ and Impairment ​ and Impairment ​ ​ ​ ​ ​ ​ ​ (in months) at ​ ​ ​ Impairment at ​ Impairment at ​ Three Months ​ Six Months ​ Three Months ​ Six Months ​ Net Book Value Net Book Value ​ ​ March 31, ​ ​ ​ March 31, ​ September 30, ​ Ended March 31, ​ Ended March 31, ​ Ended March 31, ​ Ended March 31, ​ at March 31, ​ at September 30, ​ 2025 Original Cost 2025 2024 2025 2025 2024 2024 2025 2024 Intangible assets: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ West Virginia Pipeline: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Customer relationships ​ 69 ​ $ 2,209,724 ​ $ 939,120 ​ $ 828,630 ​ $ 55,245 ​ $ 110,490 ​ $ 55,242 ​ $ 110,484 ​ $ 1,270,604 $ 1,381,094 Tradename ​ 69 ​ ​ 263,584 ​ ​ 112,039 ​ ​ 98,863 ​ ​ 6,588 ​ ​ 13,176 ​ ​ 6,591 ​ ​ 13,182 ​ ​ 151,545 ​ 164,721 Non-competes — ​ 83,203 ​ 83,203 ​ 83,203 ​ — ​ ​ — ​ ​ — ​ ​ — ​ — ​ ​ — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Revolt Energy: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Employment agreement/non-compete — ​ 100,000 ​ 100,000 ​ 100,000 ​ — ​ ​ — ​ ​ — ​ ​ — ​ — ​ ​ — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Heritage Painting ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Customer relationships ​ 51 ​ ​ 121,100 ​ ​ 18,162 ​ ​ 6,054 ​ ​ 6,054 ​ ​ 12,108 ​ ​ — ​ ​ — ​ ​ 102,938 ​ ​ 115,046 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Tri-State Paving: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Customer relationships ​ 85 ​ ​ 1,649,159 ​ ​ 481,005 ​ ​ 398,547 ​ ​ 41,229 ​ ​ 82,458 ​ ​ 41,229 ​ ​ 82,458 ​ ​ 1,168,154 ​ ​ 1,250,612 Tradename ​ 85 ​ ​ 203,213 ​ ​ 59,270 ​ ​ 49,110 ​ ​ 5,080 ​ ​ 10,160 ​ ​ 5,080 ​ ​ 10,160 ​ ​ 143,943 ​ ​ 154,103 Non-competes ​ — ​ ​ 39,960 ​ ​ 39,960 ​ ​ 39,960 ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Tribute Contracting & Consultants ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Customer relationships ​ 56 ​ ​ 500,000 ​ ​ 33,332 ​ ​ — ​ ​ 24,999 ​ ​ 33,332 ​ ​ — ​ ​ — ​ ​ 466,668 ​ ​ — Tradename ​ 56 ​ ​ 250,000 ​ ​ 16,668 ​ ​ — ​ ​ 12,501 ​ ​ 16,668 ​ ​ — ​ ​ — ​ ​ 233,332 ​ ​ — Non-competes ​ 56 ​ ​ 250,000 ​ ​ 16,668 ​ ​ — ​ ​ 12,501 ​ ​ 16,668 ​ ​ — ​ ​ — ​ ​ 233,332 ​ ​ — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total intangible assets ​ ​ ​ $ 5,669,943 ​ $ 1,899,427 ​ $ 1,604,367 ​ $ 164,197 ​ $ 295,060 ​ $ 108,142 ​ $ 216,284 ​ $ 3,770,516 ​ $ 3,065,576 ​ The amortization on identifiable intangible assets for the three months ended March 31, 2025 and 2024 was $ 164,197 and $ 108,142 , respectively. The amortization on identifiable intangible assets for the six months ended March 31, 2025 and 2024 was $ 295,060 and $ 216,284 , respectively. ​ Amortization expense associated with the identifiable intangible assets is expected to be as follows: ​ ​ ​ ​ ​ ​ Amortization Expense April 2025 to March 2026 $ 656,784 April 2026 to March 2027 ​ 656,784 April 2027 to March 2028 ​ 656,784 April 2028 to March 2029 ​ 656,784 April 2029 to March 2030 ​ 571,954 After ​ 571,426 Total ​ $ 3,770,516 ​ ​ 17 Table of Contents 15. 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. The Company has only committed to a one-year renewal and is evaluating the intent 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 $ 7,000 at March 31, 2025. The 4.5 % interest rate on the operating leases is based on the Company’s incremental borrowing rate at inception. 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 $ 87,900 at March 31, 2025. The 8.5 % 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. The Company had eighty - three vehicles on lease at March 31, 2025. The right-of-use operating lease has a carrying value of $ 2.3 million at March 31, 2025. Each vehicle leased under the master lease program has its own implicit rate ranging from 12.8 % to 15.6 %. The Company leases office and shop space for Ryan Construction’s headquarters in Bridgeport, West Virginia. The Company renewed the lease for one year effective October 1, 2024 through September 30, 2025. The Company has only committed to a one-year renewal and is evaluating the intent to renew for additional periods. 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 $ 111,500 at March 31, 2025. The 7.75 % interest rate on the operating lease is based on the Company’s incremental borrowing rate at inception. 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 $ 3.9 million and $ 3.3 million, respectively, for the three months ended March 31, 2025 and 2024. Rental expense was $ 9.0 million and $ 8.7 million, respectively, for the six months ended March 31, 2025 and 2024. Schedules related to the Company’s operating leases at March 31, 2025 can be found below: Operating Lease-Weighted Average Remaining Term ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Present value of ​ ​ ​ ​ ​ ​ remaining ​ ​ ​ Years left liability Lease end Operating lease 1 0.1 ​ $ 6,885 ​ 4/30/2025 Operating lease 2 1.0 ​ ​ 87,907 ​ 3/31/2026 Operating lease 3 ​ 4.0 ​ ​ 2,298,834 ​ 3/31/2028 Operating lease 4 ​ 0.0 ​ ​ — ​ 9/30/2024 Operating lease 5 ​ 1.3 ​ ​ 111,459 ​ 6/30/2026 ​ ​ ​ ​ $ 2,505,085 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted average remaining term ​ ​ ​ ​ 3.8 years ​ 18 Table of Contents ​ ​ ​ ​ Operating Lease Maturity Schedule ​ ​ ​ April 2025 to March 2026 $ 1,365,520 April 2026 to March 2027 ​ 1,085,696 April 2027 to March 2028 ​ 430,754 April 2028 to March 2029 ​ ​ 164,274 April 2029 to March 2030 ​ ​ 12,739 ​ ​ ​ 3,058,983 Less amounts representing interest ​ ( 553,898 ) Present value of operating lease liabilities ​ $ 2,505,085 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ Six Months Ended ​ Three Months Ended ​ Six Months Ended ​ ​ March 31, ​ March 31, ​ March 31, ​ March 31, Operating Lease Expense 2025 2025 2024 2024 Amortization ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Operating lease 1 $ 18,257 ​ $ 38,948 ​ $ 19,931 ​ $ 46,636 Operating lease 2 ​ ​ 17,581 ​ ​ 34,794 ​ ​ 16,791 ​ ​ 33,396 Operating lease 3 ​ 215,566 ​ 410,736 ​ 168,674 ​ 330,398 Operating lease 4 ​ ​ — ​ ​ — ​ ​ 19,302 ​ ​ 61,030 Operating lease 5 ​ ​ 24,967 ​ ​ 49,469 ​ ​ 22,510 ​ ​ 53,368 Total amortization ​ ​ 276,371 ​ ​ 533,947 ​ ​ 247,208 ​ ​ 524,828 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Interest ​ ​ ​ ​ ​ ​ ​ ​ Operating lease 1 ​ ​ 236 ​ ​ 545 ​ ​ 1,069 ​ ​ 2,364 Operating lease 2 ​ 2,219 ​ 4,806 ​ 318 ​ 822 Operating lease 3 ​ ​ 54,787 ​ ​ 118,509 ​ ​ 49,828 ​ ​ 118,738 Operating lease 4 ​ ​ — ​ ​ — ​ ​ 2,298 ​ ​ 3,770 Operating lease 5 ​ ​ 1,988 ​ ​ 4,441 ​ ​ 3,788 ​ ​ 7,994 Total interest ​ ​ 59,230 ​ ​ 128,301 ​ ​ 57,301 ​ ​ 133,688 Total amortization and interest ​ $ 335,601 ​ $ 662,248 ​ $ 304,509 ​ $ 658,516 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ Six Months Ended ​ Three Months Ended ​ Six Months Ended ​ ​ March 31, ​ March 31, ​ March 31, ​ March 31, Cash Paid for Operating Leases 2025 2025 2024 2024 Operating lease 1 $ 18,493 ​ $ 39,493 ​ $ 21,000 ​ $ 49,000 Operating lease 2 ​ ​ 19,800 ​ ​ 39,600 ​ ​ 17,109 ​ ​ 34,218 Operating lease 3 ​ ​ 270,353 ​ ​ 529,245 ​ ​ 218,502 ​ ​ 449,136 Operating lease 4 ​ ​ — ​ ​ — ​ ​ 21,600 ​ ​ 64,800 Operating lease 5 ​ ​ 26,955 ​ ​ 53,910 ​ ​ 26,298 ​ ​ 61,362 ​ $ 335,601 ​ $ 662,248 ​ $ 304,509 ​ $ 658,516 ​ ​ 16. SUBSEQUENT EVENTS On April 15, 2025, the Company paid $ 502,000 in quarterly dividends to holders of record as of March 31, 2025. In April 2025, the Company repurchased 106,392 common shares of stock at an average price of $ 7.99 . 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. ​ 19 Table of Contents