CONDENSED PARENT COMPANY ONLY FINANCIAL STATEMENTS (Tables)

12 Months Ended

Sep. 30, 2021

CONDENSED PARENT COMPANY ONLY FINANCIAL STATEMENTS

Schedule of balance sheet

ENERGY SERVICES OF AMERICA CORPORATION (Parent Only)

BALANCE SHEETS

As of September 30, 2021 and 2020

Assets	2021		2020
Current assets
Cash and cash equivalents	$	1,703,803	$	177,485
Other receivables		536,326		(307)
Prepaid expenses and other		3,082,577		3,145,446
Total current assets		5,322,706		3,322,624
Property, plant and equipment, at cost		265,200		265,200
less accumulated depreciation		(243,491)		(236,690)
		21,709		28,510
Deferred tax asset		2,575,843		139,307
Investment in subsidiaries		44,260,423		34,090,094
Total assets	$	52,180,681	$	37,580,535
Liabilities and shareholders' equity
Current liabilities
Current maturities of long-term debt	$	1,455,595	$	1,728,120
Lines of credit and short term borrowings		5,040,250		509,843
Accounts payable		138,091		23,771
Accrued expenses and other current liabilities		242,005		—
Total current liabilities		6,875,941		2,261,734
Due to subsidiaries		7,720,087		8,061,618
Long-term debt, less current maturities		2,947,607		1,433,154
Total liabilities		17,543,635		11,756,506
Shareholders' equity
Preferred stock, $.0001 par value Authorized 1,000,000 shares, 206 issued at September 30, 2021 and 2020		—		—
Common stock, $.0001 par value Authorized 50,000,000 shares 14,839,836 issued and 13,621,406 outstanding at September 30, 2021 and 2020		1,484		1,484
Treasury stock, 1,218,430 shares at September 30, 2021, and 2020		(122)		(122)
Additional paid in capital		60,670,699		60,670,699
Retained deficit		(26,035,015)		(34,848,032)
Total shareholders' equity		34,637,046		25,824,029
Total liabilities and shareholders' equity	$	52,180,681	$	37,580,535

Schedule of statement of income

ENERGY SERVICES OF AMERICA CORPORATION (Parent Only)

STATEMENTS OF INCOME

For the years ended September 30, 2021 and 2020

	2021		2020
Selling and administrative expenses	$	1,875,879	$	1,502,575
Net loss from operations before taxes		(1,875,879)		(1,502,575)
Other nonoperating income expense		103,211		(189)
PPP loan forgiveness		40,000		—
Interest income		286,533		53,249
Interest expense		(222,675)		(341,312)
Interest allocation to subsidiaries		209,162		323,258
Net loss before tax		(1,459,648)		(1,467,569)
Income tax benefit		(386,574)		(341,054)
Net loss from parent		(1,073,074)		(1,126,515)
Equity in undistributed income
income of subsidiaries		10,170,329		3,559,532
Net income		9,097,255		2,433,017
Dividends on preferred stock		(284,238)		(309,000)
Net income available to common shareholders	$	8,813,017	$	2,124,017
Weighted average shares outstanding- basic		13,621,406		13,804,835
Weighted average shares-diluted		16,988,424		17,238,168
Net earnings per share-basic available to common shareholders	$	0.647	$	0.154
Net earnings per share-diluted available to common shareholders	$	0.519	$	0.123

Schedule of consolidated statement of cash flow

ENERGY SERVICES OF AMERICA CORPORATION (Parent Only)

CONSOLIDATED STATEMENTS OF CASH FLOWS

For the years ended September 30, 2021 and 2020

	2021		2020
Cash flows form operating activities:
Net income	$	9,097,255	$	2,433,017
Adjustments to reconcile net income to net cash (used in) provided by operating activities
Provision for deferred taxes		(411,574)		78,786
Depreciation expense		6,801		6,062
Equity in undistributed income of subsidiaries		(10,170,329)		(3,559,532)
Paycheck Protection Program loan forgiveness		(40,000)		—
Advances (to) from subsidiaries		2,658,469		16,404,900
Changes in:
Decrease (increase) in prepaid expenses		62,869		(733,098)
Increase in other receivable		(536,633)		—
Increase (decrease) in accounts payable		114,320		(45,150)
Decrease in accrued expenses and other current liabilities		(1,782,957)		(98,843)
Net cash (used in) provided by operating activities		(1,001,779)		14,486,142
Cash flows from investing activities:
Investment in property & equipment		—		(16,798)
Net cash used in investing activities		—		(16,798)
Cash flows from financing activities:
Borrowings on lines of credit and short-term debt, net of (repayments)		4,530,407		(3,515,867)
Principal payments on long term debt		(1,718,072)		(9,628,578)
Dividends on common stock		—		(696,117)
Preferred dividends paid		(284,238)		(309,000)
Treasury stock purchased by company		—		(268,228)
Proceeds from long term debt		—		66,100
Net cash provided by (used in) financing activities		2,528,097		(14,351,690)
Increase in cash and cash equivalents		1,526,318		117,654
Cash beginning of period		177,485		59,831
Cash end of period	$	1,703,803	$	177,485
Supplemental schedule of noncash investing and financing activities:
Insurance premiums financed	$	3,213,402	$	3,063,543
Accrued dividends on preferred stock	$	52,488	$	77,250
Supplemental disclosures of cash flows information:
Cash paid during the year for:
Interest	$	222,675	$	486,246
Income taxes	$	251,996	$	785,630