0001437749-22-009097.txt : 20220418 0001437749-22-009097.hdr.sgml : 20220418 20220418160418 ACCESSION NUMBER: 0001437749-22-009097 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 16 CONFORMED PERIOD OF REPORT: 20220413 ITEM INFORMATION: Non-Reliance on Previously Issued Financial Statements or a Related Audit Report or Completed Interim Review ITEM INFORMATION: Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers: Compensatory Arrangements of Certain Officers ITEM INFORMATION: Other Events ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20220418 DATE AS OF CHANGE: 20220418 FILER: COMPANY DATA: COMPANY CONFORMED NAME: Enservco Corp CENTRAL INDEX KEY: 0000319458 STANDARD INDUSTRIAL CLASSIFICATION: OIL, GAS FIELD SERVICES, NBC [1389] IRS NUMBER: 840811316 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-36335 FILM NUMBER: 22832175 BUSINESS ADDRESS: STREET 1: 999 18TH ST STREET 2: SUITE 1925N CITY: DENVER STATE: CO ZIP: 80202 BUSINESS PHONE: 303-333-3678 MAIL ADDRESS: STREET 1: 999 18TH ST STREET 2: SUITE 1925N CITY: DENVER STATE: CO ZIP: 80202 FORMER COMPANY: FORMER CONFORMED NAME: ASPEN EXPLORATION CORP DATE OF NAME CHANGE: 19920703 8-K 1 ensv20220416_8k.htm FORM 8-K ensv20220416_8k.htm
false 0000319458 0000319458 2022-04-13 2022-04-13
 
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 
 
FORM 8-K
 
 
CURRENT REPORT
 
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
 
Date of Report April 13, 2022
(Date of earliest event reported)
 
pic1.jpg
Enservco Corporation
(Exact name of registrant as specified in its charter)
 
 
Delaware
 
001-36335
 
84-0811316
(State or other jurisdiction of
incorporation)
 
(Commission File Number)
 
(IRS Employer Identification No.)
 
14133 County Road 9½
Longmont, Colorado 80504
 
(Address of principal executive offices) (Zip Code)
 
(303) 333-3678
(Registrants telephone number, including area code)
 
(Former name or former address, if changed since last report)
 
 
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
 
 
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
 
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
 
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
 
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
 
Securities registered pursuant to Section 12(b) of the Act:
 
Title of each class
Trading Symbol(s)
Name of each exchange on which
registered
Common Stock, $0.005 par value
ENSV
NYSE American
 
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 or Rule 12b-2 of the Securities Exchange Act of 1934.
 
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
 
 

 
 
Item 4.02.  Non-Reliance on Previously Issued Financial Statements or a Related Audit Report or Completed Interim Review.
 
On April 14, 2022, Enservco Corporation (“we” or the “Company”), in consultation with the Audit Committee of its Board of Directors, concluded that the Company’s previously issued condensed consolidated financial statements as of and for the quarters ended March 31, 2021, June 30, 2021 and September 30, 2021 (collectively, the “Relevant Periods”) should no longer be relied upon due to the Company’s utilization of certain deferred tax liabilities in 2021. The Company intends to amend its Quarterly Reports on Form 10-Q for the Relevant Periods to reflect restatements of its condensed consolidated financial statements for the Relevant Periods. These restatements will have no impact on the Company’s revenues, operating expenses, loss from operations or Adjusted EBIDTA for the Relevant Periods. Because of such amendments to its Quarterly Reports on Form 10-Q, the Company will not be filing its Form 10-K for the fiscal year ended December 31, 2021 within the 15 day extension period provided by the Company’s 12b-25 filing. The Company anticipates that it will file the amendments to its Quarterly Reports on Form 10-Q for the Relevant Periods and its Form 10-K for the fiscal year ended December 31, 2021 prior to April 30, 2022.
 
The Audit Committee of the Company’s Board of Directors has discussed the matters disclosed in this Item 4.02 with Plante & Moran, PLLC, the Company’s independent registered public accounting firm.
 
 
Item 5.02. Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory of Certain Officers.         
 
Separation Agreement with President and Chief Financial Officer
 
Pursuant to its Current Report on Form 8-K filed with the Securities and Exchange Commission on April 4, 2022, the Company previously disclosed that Majorie Hargrave, President and Chief Financial Officer of the Company, is departing the Company and will no longer be an executive officer and employee of the Company effective April 22, 2022. On April 13, 2022, Enservco Corporation (“we” or the “Company”) entered into a Separation Agreement and Release with Marjorie Hargrave, the Company’s President and Chief Financial Officer. Under the Separation Agreement, the Company and Ms. Hargrave mutually agreed that Ms. Hargrave’s employment would end on April 22, 2022. As a replacement for certain compensation and benefits provided in the Company’s Employment Agreement with Ms. Hargrave, dated July 24, 2019, and in exchange for a waiver and release, the Company agreed to (a) pay Ms. Hargrave an aggregate of $187,000 in monthly installments over a nine month period; (b) pay the cost of medical insurance coverage for Ms. Hargrave through the earlier of January 31, 2023 or until Ms. Hargrave becomes eligible to obtain comparable replacement coverage through full-time employment with another employer; (c) accelerate the vesting of 25,000 unvested shares of restricted Company common stock previously granted to Ms. Hargrave; and (d) grant to Ms. Hargrave 50,000 shares of Company common stock.
 
 
Item 8.01 Other Events
 
The Company issued a press release on April 18, 2022 indicating that the Company would not be holding an earnings conference call on such date given the Company’s delay in filing its Form 10-K for the fiscal year ended December 31, 2021, as indicated in Item 4.02 above.
 
 
Item 9.01. Financial Statements and Exhibits.
 
(d) Exhibits
 
A press release is attached hereto as Exhibit 99.1, and is incorporated herein by reference.
 
Exhibit No.
Description/Exhibit
10.1
99.1
104
Cover Page Interactive Data File (embedded within the Inline XBRL document)
 
 

 
 
SIGNATURES
 
Pursuant to the requirements of the Securities Exchange Act of 1934, the Company caused this report to be signed on its behalf by the undersigned, thereunto duly authorized, on April 18, 2022.
 
 
Enservco Corporation
   
     
     
 
By:
 /s/ Richard A. Murphy
   
 Richard A. Murphy, Executive Chair and CEO
 
 
EX-10.1 2 ex_359488.htm EXHIBIT 10.1 ex_359488.htm

 

Exhibit 10.1

 

SEPARATION AGREEMENT AND RELEASE

 

This Separation Agreement and Release (“Agreement”) is by and between Marjorie Hargrave (“Executive”) and Enservco Corporation (the “Company”), both of whom enter into this Agreement intending to be legally bound.

 

1.    Background Facts. Executive and the Company agree with the following facts. The Company and Executive mutually agreed to end Executive’s employment on April 22, 2022 (the “Separation Date”). Executive and the Company are parties to an Employment Agreement, effective July 24, 2019 (“the Employment Agreement”), and paragraph 5(a) of the Employment Agreement provides for certain compensation and severance benefits upon a termination without cause. The “Separation Benefits” in Section 2 below replaces in full the compensation and severance benefits to be provided to Executive as a result of the end of her employment on the Separation Date. Executive is not entitled to any other renumeration, compensation or benefits pursuant to the Employment Agreement.

 

2.    Separation Benefits. In exchange for Executive’s waiver and release of claims set forth in Section 3 and other promises set forth in this Agreement, and provided that Executive (i) signs, dates, and returns this Agreement within the time period described in Section 4, and (ii) does not revoke this Agreement within the time period described in Section 4, the Company agrees to provide Executive with the following “Separation Benefits,” certain of which Executive would not otherwise be entitled without signing this Agreement:

 

 

a.

Severance Pay. The Company will pay Executive $187,500 (gross), less applicable federal, state and local withholding and other legally required withholdings (“Severance Pay”) in relatively equal installment payments on successive regular paydays for nine months and the first installment will be made on the first payday 7 days after the expiration of the revocation period provided in Section 4.

 

 

b.

COBRA Assistance. Following the Separation Date, Executive has the right under applicable law to elect to continue her participation in the Company’s group medical insurance program. Executive will complete and return the necessary paperwork if she desires to do so. The Company will pay the cost of that insurance coverage and any legally permitted COBRA administrative fee through January 31, 2023 or until Executive becomes eligible through full-time employment with another employer to obtain comparable replacement coverage, whichever occurs first. Executive understands that she must pay the full cost of that coverage and any legally permitted COBRA administrative fee starting February 1, 2023, if she is still participating, or eligible to participate, in this program. The Executive also agrees that she will promptly inform the Company if she becomes eligible to obtain comparable replacement coverage.

 

 

c.

Acceleration of Vesting of 25,000 Time-Vested Restricted Stock. The Company will accelerate, and fully vest as of May 16, 2022, 25,000 time-vested restricted shares that Executive currently holds as unvested. Executive will separately execute any documents necessary to obtain this additional separation benefit.

 

 

1

 

 

d.

Issuance of stock. The Company will issue Executive an additional 50,000 unrestricted and immediately saleable shares of common stock in the Company on April 22, 2022.

 

 

e.

Computer. Executive will keep Executive’s Hewlett-Packard computer issued by the Company; provided, however, that all information of the Company (except Executive’s own personnel information) shall be removed from such computer by RSM Managed IT Services prior to the Separation Date.

 

 

f.

Employment Agreement. Executive agrees that paragraph 7 of the Employment Agreement contains valid and enforceable restrictions on Employee both during and after employment with the Company. Employee acknowledges and agrees that paragraph 7 of the Employment Agreement shall remain in full force and effect according to its terms except that the Company releases Executive from her contractual obligation set out in paragraph 7(a)(i) of the Employment Agreement that restricts Executive from engaging in competition with the Company. Executive acknowledges, understands and agrees that but for this release by the Company, she would be obligated to comply with this restriction on competition. The Company is providing Executive this release as one of the Separation Benefits provided to Executive in this Agreement.

 

3.    Waiver and Release of Claims. In exchange for the Separation Benefits set forth in Section 2, Executive agrees to unconditionally waive and release any and all claims, complaints, causes of action, or demands of whatever kind which Executive has or may have as of the Separation Date against the Released Parties (as defined below) to the maximum extent permitted by applicable law up to the moment Executive signed this Agreement, including any claims, complaints, causes of action, or demands relating in any way to Executive’s employment with the Company and Executive’s separation from employment with the Company including, but not limited to, the following:

 

 

a.

All claims for any alleged unlawful discrimination, harassment, failure to accommodate, retaliation, interference, reprisal arising, or other alleged unlawful practices under any federal, state, or local law, statute, ordinance, or regulation, including, without limitation, rights or claims of discrimination, harassment, failure to accommodate, and retaliation under the federal Age Discrimination in Employment Act (“ADEA”), federal Older Workers Benefit Protection Act (“OWBPA”), the Colorado Anti-Discrimination Act, the Family and Medical Leave Act, the Americans with Disabilities Act, Title VII of the Civil Rights Act of 1964, and the Equal Pay Act;

 

 

b.

All claims arising out of Executive’s employment and Executive’s separation from employment including, but not limited to, claims based on alleged wrongful discharge, breach of contract, breach of implied contract, failure to keep any promise, breach of a covenant of good faith and fair dealing, breach of fiduciary duty, defamation, infliction of emotional distress, fraud, misrepresentation, negligence, constructive discharge, assault, battery, false imprisonment, invasion of privacy, interference with contractual or business relationships, Executive’s activities, if any, as a “whistleblower,” and any violation of any other principle of common law;

 

2

 

 

c.

All claims for any other alleged unlawful employment practices related to Executive’s employment or Executive’s separation from employment arising under any federal, state, or local law, statute, ordinance, or regulation including, without limitation, Sections 1981 and 1983 of the Civil Rights Act of 1866, the Employee Retirement Income Security Act, the Fair Credit Reporting Act or the National Labor Relations Act;

 

 

d.

With the exception of any base salary and unused vacation owed to Executive through the Separation Date, all other claims for any other form of pay, compensation, or employee benefits of any kind that is not provided in this Agreement including, without limitation, bonuses, commissions, deferred compensation, stock-based incentive compensation, stock options, phantom stock, equity of any kind, any additional paid time off of any kind, expense reimbursement, and any other claims under any applicable federal, state, and local law, statute, ordinance, or regulation to the fullest extent permitted by law;

 

 

e.

All claims Executive has now, whether or not Executive currently knows about or suspects the claims; and

 

 

f.

All claims for attorneys’ fees, costs, or interest.

 

Executive understands and agrees that the above list contains examples only and does not contain all claims that Executive is releasing. By signing this Agreement, Executive is fully and finally waiving and releasing, to the fullest extent permitted by law, all claims against the Released Parties. Executive agrees that the Company’s payment and provision of the Separation Benefits is full and fair payment for the waiver and release of Executive’s claims and has a value greater than anything Executive is entitled to if Executive does not sign this Agreement. Notwithstanding anything set forth in this Agreement, specifically excluded from the waiver and release of claims set forth above are claims or disputes that: (i) by law cannot be released in a private agreement (such as workers’ compensation claims); (ii) arise after the date Executive signed this Agreement; (iii) relate to the obligations of the Company under this Agreement; or (iv) relate to any rights of indemnification afforded Executive by statute or by common law, including any insurance coverage maintained by or on behalf of the Company.

 

For purposes of this Agreement, the term “Released Parties” means the Company and all of the Company’s past and present parents, subsidiaries, and affiliated companies, and all and each of the past and present employees, officers, officials, managers, governors, members, directors, agents, insurers, representatives, counsel, shareholders, owners, attorneys, partners, predecessors, successors, and assigns of any and all of the foregoing entities and persons. In addition, for purposes of Section 3, the term “Executive” means Marjorie Hargrave and any person who has or obtains any legal rights or claims against the Company or the Released Parties through Marjorie Hargrave.

 

3

 

4.    Executives Legal Rights.

 

 

a.

Advice to Consult With an Attorney. This Agreement is a legal document. Executive has been advised in writing to consult with an attorney prior to executing the Agreement.

 

 

b.

Period to Consider this Agreement. Executive was given this Agreement on March 31, 2022, and Executive has twenty-one (21) days following that date to consider the offer as expressed, including Executive’s waiver and release of rights and claims of age discrimination under the ADEA, and to decide whether to sign this Agreement. Executive agrees that any changes to this Agreement, whether they are material or immaterial, do not restart the running of the 21-day consideration period.

 

 

c.

Revocation Period. Executive understands that Executive has the right to revoke her waiver of claims under the ADEA within seven (7) days after the date on which Executive signs this Agreement. This Agreement shall not become effective or enforceable until the revocation period has expired.

 

 

d.

Revocation Procedure. To revoke, Executive must put the revocation in writing, and deliver it to the Company by hand, email or mail to Richard Murphy within the revocation period. If Executive delivers revocation by mail, it must be: (1) postmarked within the 7-day period to revoke her waiver of claims under the ADEA; (2) properly addressed to Richard Murphy, Enservco Corporation, 14133 County Road 9 1/2, Longmont, Colorado 80504; and (3) sent by certified mail, return receipt requested or by email at rmurphy@enservco.com.

 

 

e.

Effect of Revocation. If Executive revokes this Agreement as described in this Section 4, Executive understands that (i) this Agreement is null and void, (ii) the Company shall have no further obligation under this Agreement, (iii) Executive will not receive the Separation Benefits in Section 2 of this Agreement or any other benefits listed within this document, and (iv) Executive’s employment will still end on the Separation Date.

 

5.    Filings. Executive understands that, without being penalized or having an obligation to notify the Company, this Agreement does not prohibit Executive from filing an administrative charge of discrimination or complaint with the Equal Employment Opportunity Commission, National Labor Relations Board, Occupational Safety and Health Administration, Colorado Department of Human Rights, or any other federal, state, or local governmental agency or commission or law enforcement agency (“Government Agencies”). Executive understands that this Agreement does not limit Executive’s ability to communicate with any Government Agencies or otherwise participate in any investigation or proceeding that may be conducted by any Government Agencies, including providing documents or other information, without notice to the Company. If Executive had filed or files a charge or complaint, Executive agrees that the Company’s payment of the Separation Benefits completely satisfies any and all claims for monetary relief in connection with such charge or complaint. Executive is not entitled to any other monetary relief of any kind with respect to the claims that Executive has released in this Agreement unless Executive’s waiver and release of claims is deemed unlawful or otherwise invalid.

 

4

 

6.    Transition and Cooperation. Executive promises to use reasonable efforts prior to the Separation Date to transition her work responsibilities, including but not limited to, executing documents necessary to remove her as an authorized representative of the Company. As requested by the Company, prior to the Separation Date, Executive will execute documentation necessary to remove herself from all positions held with the Company and all Company-related entities. Executive represents that she has delivered all passwords known to Executive for any Company devices and/or accounts in use at the time of the Separation Date. Executive will cooperate during the first 30 days following the Separation Date with the Company and use reasonable efforts to be available, on a reasonable basis, to answer questions of Amanda Dalbey that may arise to achieve a smooth transition after the Separation Date for a period of 30 days; provided that Executive shall not be required to spend more than five (5) hours in any week answering questions during such 30-day period and will be compensated at a rate of $175 per hour as long as Amanda Dalbey approves the time Executive spends in advance. The Company has no current need for Executive’s assistance with any investigation, administrative proceeding or litigation. In the event the Company’s needs change, Executive agrees to discuss with the Company and its counsel, on a reasonable basis and at no cost to her, Executive’s potential participation in connection with any investigation, administrative proceeding or litigation relating to any matter, occurring during her employment, in which she was involved or of which she has knowledge, and upon agreement to participate the exact scope of Executive’s assistance will be agreed upon by Executive and the Company at the time the need for Executive’s assistance arises. Any such assistance would include an obligation of the Company to indemnify Executive. The Company shall pay Executive $175 per hour for such services, as long as the Company approves the time Executive spends providing such assistance in advance and in writing.

 

7.    Non-disparagement. Executive will not disparage the Company, its products, services, systems, and other matters pertaining to its business, and its employees and Board members, including, without limitation, all and each of the members of its management team. This non-disparagement obligation includes refraining from making statements, comments or postings on the internet regarding the Company with the intent of harming the Company (as determined in the Company’s sole judgment). The Company, on behalf of itself and its management team, will not disparage Executive in any manner, which includes refraining from making statements, comments or postings on the internet regarding Executive with the intent of harming Executive. This non-disparagement provision does not apply to legally protected communications and does not restrict or prohibit either Executive or the Company from making statements to or in any other manner communicating with any Government Agencies.

 

5

 

8.    Consideration. Executive agrees that (i) the Separation Benefits in Section 2 includes certain separation benefits above and beyond that to which Executive would be entitled if Executive did not sign this Agreement, (ii) those Separation Benefits in Section 2 constitute independent and sufficient consideration for all aspects of this Agreement, and (iii) Executive is not eligible for any other payments or benefits except for those expressly described in this Agreement, provided that Executive signs and returns this Agreement within the specified time period and does not revoke this Agreement.

 

9.    Remuneration. With the exception of any base salary and unused vacation owed to Executive through the Separation Date, Executive acknowledges and agrees that the Company has paid Executive all monies, wages, salary, accrued and unused paid time off, expenses and bonuses, and due to Executive through the Separation Date. Executive is not entitled to any additional remuneration from the Company other than the consideration specified within this Agreement. In particular, Executive is not entitled to any additional payments, remuneration or benefits pursuant to the Employment Agreement. In addition, Executive acknowledges that Executive is not aware of any time worked during Executive’s employment for which Executive has not already been fully compensated.

 

10.    Section 409A. This Agreement and the payments made hereunder are intended to satisfy, or be exempt from, the requirements of Section 409A of the Internal Revenue Code of 1986, as amended (the “Code”), including current and future guidance and regulations interpreting such provisions, and should be interpreted accordingly. Each payment under this Agreement is intended to be treated as one of a series of separate payments for purposes of Code Section 409A and Treasury Regulation §1.409A-2(b)(2)(iii) (or any similar or successor provisions). If any taxes, interest, or penalties are imposed pursuant to Section 409A, Executive shall be solely liable for such amounts.

 

11.    Acknowledgement. Executive acknowledges and agrees that Executive has not suffered any work-related injury for which Executive has not already filed a claim.

 

12.    Non-Admission. It is expressly understood that this Agreement does not constitute, nor shall it be construed as, an admission by the Company of any liability or unlawful conduct whatsoever. The Company specifically denies any liability or unlawful conduct on the Company’s part.

 

13.    Successors and Assigns. This Agreement is personal to Executive and may not be assigned by Executive without the written agreement of the Company. The rights and obligations of this Agreement shall inure to the successors and assigns of the Company.

 

14.    Severability. If a court finds any term of this Agreement to be invalid, unenforceable, or void, Executive and the Company agree that the court shall modify such term to make it enforceable to the maximum extent possible. If the term cannot be modified, Executive and the Company agree that the term shall be severed and all other terms of this Agreement shall remain in effect. Executive and the Company agree that Executive’s waiver and release of claims should be interpreted as broadly as possible to achieve Executive’s intention of releasing all claims against the Released Parties.

 

15.    Entire Agreement. This Agreement and the Employment Agreement constitute the sole understanding of Executive and the Company with respect to the subject matters provided for herein. No other agreements, covenants, representations or warranties, express or implied, oral or written, have been made by any party hereto to any other party concerning the subject matters hereof. All prior and contemporaneous conversations, negotiations, possible and alleged agreements, representations, covenants and warranties concerning the subject matters hereof are merged herein. This Agreement may not be modified, altered, or changed in any way except by written agreement signed and delivered by Executive and the Company’s duly authorized representative.

 

6

 

16.    No Waiver. No claim or right arising out of a breach or default under this Agreement may be discharged by a waiver of that claim or right unless the waiver is made in writing and signed by the Company’s duly authorized representative or Executive, as applicable. A waiver by any party of a breach or default of the other party of any provision contained in this Agreement shall not be deemed a waiver of future compliance of such provisions, and such provisions shall remain in full force and effect.

 

17.    Governing Law/Venue. The laws of the State of Colorado will govern the validity, construction, and performance of this Agreement, without regard to the conflict of law provisions of any other jurisdictions. Executive irrevocably consents to the exclusive jurisdiction of courts in Colorado for the purposes of any action arising out of or related to this Agreement, including any actions for temporary, preliminary, and permanent equitable relief. Executive irrevocably waives Executive’s right, if any, to have any disputes between the Company and Executive arising out of or related to this Agreement decided in any jurisdiction or venue other than a state or federal court in the State of Colorado.

 

18.    Accepting/Signing this Agreement. Executive agrees not to sign this Agreement prior to the end of the work day on the Separation Date.

 

19.    Execution and Delivery. This Agreement may be executed in counterparts, which taken together shall constitute one agreement binding on all the parties. Electronically transmitted signatures shall be valid and binding to the same extent as signatures delivered in original. In making proof of this Agreement, it will be necessary to produce only one copy signed (or reproduced from an electronically delivered signature) by the party to be charged.

 

20.    References. Bob Herlin on behalf of the Company will provide Executive a favorable and positive reference if requested by Executive or in connection with any future reference requests.

 

[Signature page follows]

 

7

 

ACCEPTED AND AGREED:

 

 

Dated: April 12, 2022 /s/ Marjorie Hargrave
  Marjorie Hargrave
   
   
   
  ENSERVCO CORPORATION
   
Dated: April 13, 2022 By: /s/ Richard Murphy
    Richard Murphy
  Its: CEO

 

8
EX-99.1 3 ex_359487.htm EXHIBIT 99.1 ex_359487.htm

 

Exhibit 99.1

 

 

pic1.jpg

 

 

Enservco Corporation Delays Filing of Form 10-K to Restate 2021 Form 10-Qs to Account for the Companys Utilization of Deferred Tax Liabilities

 

Earnings conference call originally scheduled for April 18, 2022, will be rescheduled

 

Company expects to report Q4 revenue 71% higher than prior year with similar revenue increase anticipated for first quarter of 2022

 

LONGMONT, CO – April 18, 2022 – Enservco Corporation (NYSE American: ENSV), a diversified national provider of specialized well-site services to the domestic onshore conventional and unconventional oil and gas industries, today announced it will delay the filing of its 2021 Form 10-K to restate the Company’s financial statements on three Form 10-Qs for 2021 to adjust for its utilization of certain deferred tax liabilities in 2021. These restatements are not related to operating matters and will not affect the Company’s reported revenue or operating expenses.

 

The Company also announced it generated a 71% increase in fourth quarter 2021 revenues compared to the prior year fourth quarter due to gains across all service offerings based on increased customer activity driven by higher commodity prices and the addition of new customers.

 

“We are eager to report our full fourth quarter results from 2021 because they will show improvements year over year,” said Rich Murphy, Executive Chairman. “Our first quarter of 2022 is also expected to show improved results, which will give the Company four consecutive quarters of year-over-year revenue growth. We believe the outlook for the oil and gas industry is favorable, and we remain excited about our prospects going forward.

 

“We apologize to our stockholders for the delay in our filings and earnings call, but we want to ensure that our amended Form 10-Qs and Form 10-K accurately reflect the appropriate tax treatment that was impacted by the financing completed early in 2021,” Murphy added. “Our auditors and third-party tax advisors are working diligently to complete these calculations as quickly as possible, and we expect to complete our 2021 filings as soon as practicable.”

 

About Enservco

Through its various operating subsidiaries, Enservco provides a range of oilfield services, including hot oiling, acidizing, frac water heating, and related services. The Company has a broad geographic footprint covering seven major domestic oil and gas basins and serves customers in Colorado, Montana, New Mexico, North Dakota, Oklahoma, Pennsylvania, Ohio, Texas, Wyoming, West Virginia, Utah, Michigan, Illinois, Florida, New Mexico and Louisiana. Additional information is available at www.enservco.com.

 

 

 

Cautionary Note Regarding Forward-Looking Statements

 

This news release contains information that is "forward-looking" in that it describes events and conditions Enservco reasonably expects to occur in the future. Expectations for the future performance of Enservco are dependent upon a number of factors, and there can be no assurance that Enservco will achieve the results as contemplated herein. Certain statements contained in this release using the terms “believes,” "may," “intends,” "expects to," and other terms denoting future possibilities, are forward-looking statements. The accuracy of these statements cannot be guaranteed as they are subject to a variety of risks, which are beyond Enservco's ability to predict, or control and which may cause actual results to differ materially from the projections or estimates contained herein. Among these risks are those set forth in Enservco’s annual report on Form 10-K for the year ended December 31, 2020, and subsequently filed documents with the SEC. Forward looking statements in this news release include ability of the Company to complete tax provision calculations, file amended 2021 Form 10-Qs and Form 10-K, and report year over year revenue growth for the fourth quarter of 2021 and first quarter of 2022; potential for continued favorable industry outlook and prospects for the Company. Enservco disclaims any obligation to update any forward-looking statement made herein, except as required by law.

 

Contact:

 

Mark Patterson

SVP

Enservco Corporation

mpatterson@enservco.com

 

Pfeiffer High Investor Relations, Inc.

Jay Pfeiffer

Phone: 303-880-9000

Email: jay@pfeifferhigh.com

 

 
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Document And Entity Information
Apr. 13, 2022
Document Information [Line Items]  
Entity, Registrant Name Enservco Corporation
Document, Type 8-K
Document, Period End Date Apr. 13, 2022
Entity, Incorporation, State or Country Code DE
Entity, File Number 001-36335
Entity, Tax Identification Number 84-0811316
Entity, Address, Address Line One 14133 County Road 9½
Entity, Address, City or Town Longmont
Entity, Address, State or Province CO
Entity, Address, Postal Zip Code 80504
City Area Code 303
Local Phone Number 333-3678
Written Communications false
Soliciting Material false
Pre-commencement Tender Offer false
Pre-commencement Issuer Tender Offer false
Title of 12(b) Security Common Stock
Trading Symbol ENSV
Security Exchange Name NYSEAMER
Entity, Emerging Growth Company false
Amendment Flag false
Entity, Central Index Key 0000319458
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