Energy Services of America CORP

Previous wording

Energy Services of America Corporation (“Energy Services” or the “Company”), formed in 2006, is a contractor and service company that operates primarily in the mid-Atlantic and central regions of the United States and provides services to customers in the natural gas, petroleum, water distribution, automotive, chemical, and power industries. For the gas industry, the Company is primarily engaged in the construction, replacement and repair of natural gas pipelines and storage facilities for utility companies and private natural gas companies. Energy Services is involved in the construction of both interstate and intrastate pipelines, with an emphasis on the latter. For the oil industry, the Company provides a variety of services relating to pipeline, storage facilities and plant work. For the power, chemical, and automotive industries, the Company provides a full range of electrical and mechanical installations and repairs including substation and switchyard services, site preparation, equipment setting, pipe fabrication and installation, packaged buildings, transformers, and other ancillary work with regards thereto. Energy Services’ other pipeline services include corrosion protection services, horizontal drilling services, liquid pipeline construction, pump station construction, production facility construction, water and sewer pipeline installations, various maintenance and repair services and other services related to pipeline construction. The Company has also added the ability to install broadband and solar electric systems and perform civil and general contracting services.

Current wording

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.

Previous wording

Nitro Construction Services, Inc. (“NCS”), a wholly owned subsidiary of C.J. Hughes, provides electrical, mechanical, HVAC/R, and fire protection services to customers primarily in the automotive, chemical, and power industries. Revolt Energy, LLC (“Revolt”), a wholly owned subsidiary of NCS, performs residential solar installation projects. Nitro Electric Company, LLC (“Nitro Electric”), a wholly owned subsidiary of NCS, performs industrial electrical work and 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”.

Current wording

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.

Previous wording

Three months ended December 31, 2024 and 2023 Overview

Current wording

Three and Six Months Ended March 31, 2025 and 2024 Overview

Previous wording

The following is an overview of results from operations for the three months ended December 31, 2024 and 2023:

Current wording

The following is an overview of results from operations for the three and six months ended March 31, 2025 and 2024:

Previous wording

Results of Operations for the Three months Ended December 31, 2024 Compared to the Three months Ended December 31, 2023

Current wording

Results of Operations for the Three and Six Months Ended March 31, 2025 Compared to the Three and Six Months Ended March 31, 2024

Previous wording

Revenues. A table comparing the Company’s revenues for the three months ended December 31, 2024 compared to the three months ended December 31, 2023 is below:

Current wording

Revenues. A table comparing the Company’s revenues for the three and six months ended March 31, 2025 compared to the three and six months ended March 31, 2024 is below:

Previous wording

Total revenues increased by $10.5 million to $100.6 million for the three months ended December 31, 2024, as compared to $90.2 million for the three months ended December 31, 2023. The increase was a result of $14.2 million and $6.4 million in increased work in the Gas & Water Distribution and Electrical, Mechanical, & General categories, respectively, partially offset by a $10.1 million decrease in Gas & Petroleum Transmission work for the three months ended December 31, 2024 as compared to the same period in 2023.

Current wording

Total revenues increased by $16.0 million to $177.3 million for the six months ended March 31, 2025, as compared to $161.3 million for the six months ended March 31, 2024. The increase was a result of a $27.0 million increase in Gas & Water Distribution and a $5.5 million increase in Electrical, Mechanical, & General construction services, partially offset by a $16.5 million decrease in Gas & Petroleum Transmission work for the six months ended March 31, 2025 as compared to the same period in 2024.

Previous wording

Gas & Water Distribution revenues totaled $31.3 million for the three months ended December 31, 2024, a $14.2 million increase from $17.1 million for the three months ended December 31, 2023. The revenue increase was primarily related to increased water distribution services performed during the three months ended December 31, 2024, as compared to the same period in 2023.

Current wording

Gas & Water Distribution revenues totaled $27.1 million for the three months ended March 31, 2025, a $12.8 million increase from $14.3 million for the three months ended March 31, 2024. Gas & Water Distribution revenues totaled $58.4 million for the six months ended March 31, 2025, a $27.0 million increase from $31.4 million for the six months ended March 31, 2024. The revenue increases were primarily related to increased water distribution services performed during the three and six months ended March 31, 2025, as compared to the same period in 2024.

Previous wording

Electrical, Mechanical, & General construction services revenues totaled $50.9 million for the three months ended December 31, 2024, a $6.4 million increase from $44.5 million for the three months ended December 31, 2023. The revenue increase was primarily related to an increase in general contracting and electrical services performed during the three months ended December 31, 2024, as compared to the same period in the prior year.

Current wording

Electrical, Mechanical, & General construction services revenues totaled $46.2 million for the three months ended March 31, 2025, a $908,000 decrease from $47.1 million for the three months ended March 31, 2024. The decrease was primarily due to less general construction work during the three months ended March 31, 2025 as compared to the same period in the prior year. Electrical, Mechanical, & General construction services revenues totaled $97.1 million for the six months ended March 31, 2025, a $5.5 million increase from $91.6 million for the six months ended March 31, 2024. The revenue increase was primarily related to an increase in electrical & mechanical services performed during the six months ended March 31, 2025, as compared to the same period in the prior year.

Previous wording

*Cost of Revenues.*A table comparing the Company’s costs of revenues for the three months ended December 31, 2024, compared to the three months ended December 31, 2023, is below:

Current wording

*Cost of Revenues.*A table comparing the Company’s costs of revenues for the three and six months ended March 31, 2025, compared to the three and six months ended March 31, 2024, is below:

Previous wording

Total cost of revenues increased by $11.1 million to $90.4 million for the three months ended December 31, 2024, as compared to $79.3 million for the three months ended December 31, 2023. The cost of revenues increase was the result of increased work in the Gas & Water Distribution and Electrical, Mechanical, & General business categories, partially offset by a decrease in Gas & Petroleum Transmission work.

Current wording

Total cost of revenues increased by $11.7 million to $76.6 million for the three months ended March 31, 2025, as compared to $64.9 million for the three months ended March 31, 2024. Total cost of revenues increased by $22.8 million to $167.0 million for the six months ended March 31, 2025, as compared to $144.2 million for the six months ended March 31, 2024. The cost of revenues increases was partially the result of increased work in the Gas & Water Distribution and Electrical, Mechanical, & General business categories, partially offset by a decrease in Gas & Petroleum Transmission work.

Previous wording

Gas & Water Distribution cost of revenues totaled $26.1 million for the three months ended December 31, 2024, a $13.0 million increase from $13.1 million for the three months ended December 31, 2023. The cost of revenues increase was primarily related to increased water distribution services performed during the three months ended December 31, 2024, as compared to the same period in 2023.

Current wording

Gas & Water Distribution cost of revenues totaled $28.0 million for the three months ended March 31, 2025, a $16.1 million increase from $11.9 million for the three months ended March 31, 2024. Gas & Water Distribution cost of revenues totaled $54.1 million for the six months ended March 31, 2025, a $29.2 million increase from $25.0 million for the six months ended March 31, 2024. The cost of revenues increase was primarily related to increased water distribution services performed during the three and six months ended March 31, 2025, as compared to the same periods in 2024. Additionally, the three months ended March 31, 2025 was heavily impacted by inclement weather that resulted in a significant amount of lost workdays and lower productivity on projects.

Previous wording

Gas & Petroleum Transmission cost of revenues totaled $17.5 million for the three months ended December 31, 2024, a $7.6 million decrease from $25.2 million for the three months ended December 31, 2023. The cost of revenues decrease for the three months ended December 31, 2024 was primarily due to more transmission work being completed by the end of fiscal year 2024 as compared to 2023 and less transmission work being competed in first fiscal year quarter of 2025 as compared to 2024. Additionally, Gas & Petroleum work was more impacted by inclement weather in the first fiscal quarter of 2025, as compared to the same period in the prior fiscal year. This resulted in less efficient production and more costs than expected.

Current wording

Gas & Petroleum Transmission cost of revenues totaled $4.6 million for the three months ended March 31, 2025, a $4.9 million decrease from $9.5 million for the three months ended March 31, 2024. Gas & Petroleum Transmission cost of revenues totaled $22.1 million for the six months ended March 31, 2025, a $12.6 million decrease from $34.7 million for the six months ended March 31, 2024. The cost of revenues decreases was primarily due to more transmission work being completed by the end of fiscal year 2024 and not extending into the first quarter of fiscal year 2025 and bid opportunities and project awards on transmission work are being received later compared to previous fiscal years. Additionally, Gas & Petroleum work was more impacted by inclement weather in the first and second fiscal quarters of 2025, as compared to the same periods in the prior fiscal year. This resulted in less efficient production and more costs than expected.

Previous wording

Electrical, Mechanical, & General construction services cost revenues totaled $46.1 million for the three months ended December 31, 2024, a $5.0 million increase from $41.1 million for the three months ended December 31, 2023. The cost of revenues increase was primarily related to an increase in general contracting and electrical services performed during the three months ended December 31, 2024, as compared to the same period in the prior year.

Current wording

Electrical, Mechanical, & General construction services cost of revenues totaled $42.4 million for the three months ended March 31, 2025, a $54,000 increase from $42.4 million for the three months ended March 31, 2024. Electrical, Mechanical, & General construction services cost of revenues totaled $88.5 million for the six months ended March 31, 2025, a $5.0 million increase from $83.4 million for the six months ended March 31, 2024. Electrical, Mechanical, & General construction services were less impacted by inclement weather during the three months ended March 31, 2025, and results were comparable to the same periods in the prior year. The cost of revenues increase for the six months ended March 31, 2025 was primarily related to an increase in Electrical, Mechanical, & General construction services performed during the first half of fiscal year 2025, as compared to the same periods in the prior year.

Previous wording

Unallocated shop expenses totaled $674,000 for the three months ended December 31, 2024, a $669,000 increase from $5,000 for the three months ended December 31, 2023. The increase in unallocated shop expenses was primarily due to a decrease in the amount of internal equipment charged to projects for the three months ended December 31, 2024, as compared to the same period in the prior year.

Current wording

Unallocated shop expenses totaled $1.6 million for the three months ended March 31, 2025, a $451,000 increase from $1.1 million for the three months ended March 31, 2024. Unallocated shop expenses totaled $2.2 million for the six months ended March 31, 2025, a $1.1 million increase from $1.1 million for the six months ended March 31, 2024. The increases in unallocated shop expenses were primarily due to a decrease in the amount of internal equipment charged to projects for the three and six months ended March 31, 2025, as compared to the same periods in the prior year.

Previous wording

Gross Profit (Loss).* *A table comparing the Company’s gross profit for the three months ended December 31, 2024, compared to the three months ended December 31, 2023, is below:

Current wording

Gross Profit (Loss).* *A table comparing the Company’s gross profit for the three and six months ended March 31, 2025, compared to the three and six months ended March 31, 2024, is below:

Previous wording

Total gross profit decreased by $575,000 to $10.3 million for the three months ended December 31, 2024, as compared to $10.8 million for the three months ended December 31, 2023. The decrease was primarily due to decreased profit in Gas & Petroleum Transmission work during the first quarter of fiscal year 2025, as compared to the same period in the prior year.

Current wording

Total gross profit decreased by $6.1 million to $78,000 for the three months ended March 31, 2025, as compared to $6.2 million for the three months ended March 31, 2024. Total gross profit decreased by $6.7 million to $10.3 million for the six months ended March 31, 2025, as compared to $17.1 million for the six months ended March 31, 2024.

Previous wording

Electrical, Mechanical, & General construction services gross profit totaled $4.8 million for the three months ended December 31, 2024, a $1.4 million increase from $3.5 million for the three months ended December 31, 2023. The gross profit increase was primarily related to an increase in general contracting and electrical services performed during the three months ended December 31, 2024, as compared to the same period in the prior fiscal year.

Current wording

Electrical, Mechanical, & General construction services gross profit totaled $8.6 million for the six months ended March 31, 2025, a $416,000 increase from $8.2 million for the six months ended March 31, 2024. The gross profit increase was primarily related to an increase in mechanical and electrical services performed during the first fiscal year quarter of 2025, as compared to the same period in the prior fiscal year.

Previous wording

Gross loss attributable to unallocated shop expenses totaled ($674,000) for the three months ended December 31, 2024, a $669,000 increase from ($5,000) for the three months ended December 31, 2023. The increase in gross loss related to unallocated shop expenses was primarily due to a decrease in the amount of internal equipment charged to projects for the three months ended December 31, 2024, as compared to the same period in the prior year.

Current wording

Gross loss attributable to unallocated shop expenses totaled ($1.6 million) for the three months ended March 31, 2025, a $451,000 increase from ($1.1 million) for the three months ended March 31, 2024. Gross loss attributable to unallocated shop expenses totaled ($2.2 million) for the six months ended March 31, 2025, a $1.1 million increase from ($1.1 million) for the six months ended March 31, 2024. The increase in gross loss related to unallocated shop expenses was primarily due to a decrease in the amount of internal equipment charged to projects for the three and six months ended March 31, 2025, as compared to the same periods in the prior year.

Previous wording

Selling and administrative expenses. Total selling and administrative expenses increased by $1.4 million to $8.6 million for the three months ended December 31, 2024, as compared to $7.2 million for the same period in the prior year. The increase was primarily related to additional personnel hired to secure and manage work for expected growth.

Current wording

Selling and administrative expenses. Total selling and administrative expenses increased by $848,000 to $8.2 million for the three months ended March 31, 2025, as compared to $7.3 million for the same period in the prior year. Total selling and administrative expenses increased by $2.3 million to $16.8 million for the six months ended March 31, 2025, as compared to $14.5 million for the same period in the prior year. The increases were primarily related to additional personnel hired to secure and manage work for expected growth and increased consulting and audit fees due to becoming an accelerated filer which requires a separate internal controls audit. The Company’s latest acquisition, Tribute, also accounted for $273,000 and $553,000 of the increase, respectively, for the three and six months ended March 31, 2025, as compared to the same periods in the prior year.

Previous wording

Other non-operating (expense) income.* *Other non-operating expenses totaled $48,000 for the three months ended December 31, 2024, as compared to $75,000 in non-operating income for the same period in the prior year. The change for the three months ended December 31, 2024, as compared to the same period in the prior year, was primarily related to a minor legal settlement received during the three months ended December 31, 2023 that recouped employee benefit costs expended in a prior period.

Current wording

Other non-operating expense.* *Other non-operating expenses totaled $21,000 for the three months ended March 31, 2025, as compared to $81,000 for the same period in the prior year. The decrease for the three months ended March 31, 2025 was primarily due to a reduction in contributions and sponsorships, as compared the same period in the prior year. Other non-operating expenses totaled $69,000 for the six months ended March 31, 2025, as compared to $6,000 for the same period in the prior year. The increase for the six months ended March 31, 2025, as compared to the same period in the prior year, was primarily related to a minor legal settlement received during the first quarter of fiscal year 2024 that recouped employee benefit costs expended in a prior period.

Previous wording

Gain on sale of equipment.* *Gain on sale of equipment totaled $196,000 for the three months ended December 31, 2024, an increase of $209,000 from a loss of ($13,000) for the same period in the prior year. The Company sold certain underutilized or non-working pieces of equipment during the three months ended December 31, 2024, with no comparable sale occurring during the three months ended December 31, 2023.

Current wording

(Loss) gain on sale of equipment. Loss on sale of equipment totaled ($17,000) for the three months ended March 31, 2025, a decrease of $322,000 from a gain of $305,000 for the same period in the prior year. Gain on sale of equipment totaled $179,000 for the six months ended March 31, 2025, a decrease of $112,000 from $292,000 for the same period in the prior year. The Company sold certain underutilized or non-working pieces of equipment during the first quarter of fiscal year 2025, with no comparable sale occurring during the same period in 2024.

Previous wording

Net income.* *Income before income taxes was $1.3 million for the three months ended December 31, 2024, as compared to $3.1 million for the same period in the prior year. The decrease was primarily related to the items mentioned above.

Current wording

Net (loss) income.* *Loss before income taxes was ($9.0 million) for the three months ended March 31, 2025, as compared to ($1.5 million) for the same period in the prior year. Loss before income taxes was ($7.7 million) for the six months ended March 31, 2025, as compared to a net income of $1.6 million for the same period in the prior year. The decreases were primarily related to the items mentioned above.

Previous wording

Income tax expense for the three months ended December 31, 2024, was $455,000 compared to $1.1 million for the same period in the prior year. The decrease in income tax expense was due to a decrease in taxable income during the three months ended December 31, 2024, as compared to the same period in the prior year.

Current wording

Income tax (benefit) expense for the three months ended March 31, 2025, was ($2.5 million) compared to ($373,000) for the same period in the prior year. Income tax (benefit) expense for the six months ended March 31, 2025, was ($2.0 million) compared to $685,000 for the same period in the prior year. The increase in income tax benefit and the decrease in income tax expense for the three and six months ended March 31, 2025, respectively, as compared to the same periods in the prior year were due to a decrease in taxable income during the three and six months ended March 31, 2025, as compared to the same periods in the prior year.

Previous wording

The Company had total assets of $192.1 million at December 31, 2024, an increase of $33.9 million from the prior fiscal year end balance of $158.2 million.

Current wording

The Company had total assets of $170.2 million at March 31, 2025, an increase of $12.0 million from the prior fiscal year end balance of $158.2 million.

Previous wording

The Company had net property, plant and equipment of $53.3 million at December 31, 2024, an increase of $15.2 million from the prior fiscal year end balance of $38.1 million. The increase was due to $14.9 million in asset additions related to the Tribute acquisition, $3.1 million in other asset additions, partially offset by $2.6 million in depreciation and net equipment disposals of $300,000.

Current wording

The Company had net property, plant and equipment of $52.3 million at March 31, 2025, an increase of $14.2 million from the prior fiscal year end balance of $38.1 million. The increase was due to $14.9 million in asset additions related to the Tribute acquisition, $5.3 million in other asset additions, partially offset by $5.6 million in depreciation and net equipment disposals of $417,000.

Previous wording

Accounts receivable, net of allowance for doubtful accounts, totaled $63.9 million at December 31, 2024, an increase of $7.8 million from the prior fiscal year end balance of $56.1 million. The increase was primarily due to the timing of cash collections and project invoicing since September 30, 2024 and $3.8 million in accounts receivable related to Tribute at December 31, 2024.

Current wording

Accounts receivable, net of allowance for doubtful accounts, totaled $51.5 million at March 31, 2025, a decrease of $4.6 million from the prior fiscal year end balance of $56.1 million. The decrease was primarily due to the timing of cash collections and project invoicing since September 30, 2024, partially offset by $3.8 million in accounts receivable related to Tribute at March 31, 2025.

Previous wording

Cash and cash equivalents totaled $20.3 million at December 31, 2024, an increase of $7.4 million from the prior fiscal year end balance of $12.9 million. The increase was primarily due to a net $8.5 million provided by operating activities, and a net $21.7 million provided by financing activities, partially offset by a $20.8 million investment in the acquisition of Tribute and a net $2.0 million investment in equipment.

Current wording

Cash and cash equivalents totaled $9.9 million at March 31, 2025, a decrease of $3.0 million from the prior fiscal year end balance of $12.9 million. The decrease was primarily due to a net $10.0 million provided by operating activities, and a net $12.3 million

Previous wording

Retainage receivable totaled $15.2 million at December 31, 2024, an increase of $3.5 million from the prior fiscal year end balance of $11.7 million. The increase was primarily due to $2.9 million in retainage receivables related to Tribute at December 31, 2024.

Current wording

Retainage receivable totaled $13.9 million at March 31, 2025, an increase of $2.2 million from the prior fiscal year end balance of $11.7 million. The increase was primarily due to $3.2 million in retainage receivables related to the acquisition of Tribute at March 31, 2025, partially offset by net retainages received as of March 31, 2025.

Previous wording

Intangible assets, net totaled $3.9 million at December 31, 2024, an increase of $869,000 from the prior fiscal year end balance of $3.1 million. The increase was primarily due to intangible assets acquired as part of the Tribute acquisition, partially offset by the amortization of intangible assets during the three months ended December 31, 2024.

Current wording

Intangible assets, net totaled $3.8 million at March 31, 2025, an increase of $705,000 from the prior fiscal year end balance of $3.1 million. The increase was primarily due to intangible assets acquired as part of the Tribute acquisition, partially offset by the amortization of intangible assets during the six months ended March 31, 2025.

Previous wording

Right-of-use assets totaled $2.6 million at December 31, 2024, an increase of $85,000 from the prior fiscal year end balance of $2.5 million. The increase was primarily due to an increase in leased vehicles, partially offset by the amortization of operating leases during the three months ended December 31, 2024.

Current wording

Right-of-use assets totaled $2.5 million at March 31, 2025, a decrease of $31,000 from the prior fiscal year end balance. The decrease was primarily due to the amortization of operating leases, partially offset by an increase in leased vehicles during the six months ended March 31, 2025.

Previous wording

Contract assets totaled $19.5 million at December 31, 2024, a decrease of $5.1 million from the prior fiscal year end balance of $24.6 million. The decrease was due to a difference in the timing of project billings at December 31, 2024, compared to September 30, 2024.

Current wording

Contract assets totaled $22.7 million at March 31, 2025, a decrease of $1.9 million from the prior fiscal year end balance of $24.6 million. The decrease was due to a difference in the timing of project billings at March 31, 2025, compared to September 30, 2024.

Previous wording

Prepaid expenses and other totaled $3.1 million at December 31, 2024, a decrease of $986,000 from the prior fiscal year end balance of $4.1 million. The decrease was primarily due to a decrease in prepaid insurance that was expensed during the three months ended December 31, 2024.

Current wording

Prepaid expenses and other totaled $5.1 million at March 31, 2025, an increase of $1.0 million from the prior fiscal year end balance of $4.1 million. The increase was primarily due to prepaid insurance payments, partially offset by insurance expensed during the six months ended March 31, 2025.

Previous wording

The Company had total liabilities of $131.0 million at December 31, 2024, an increase of $31.4 million from the prior fiscal year end balance of $99.6 million.

Current wording

The Company had total liabilities of $116.4 million at March 31, 2025, an increase of $16.9 million from the prior fiscal year end balance of $99.6 million.

Previous wording

The aggregate balance of current maturities of long-term debt and long-term debt totaled $49.3 million at December 31, 2024, an increase of $25.7 million from the prior fiscal year-end balance of $23.6 million. The increase was primarily due to $16.0 million related to financing the acquisition of Tribute and assumption of $3.8 million of Tribute equipment debt, $200,000 in additional equipment financing and $7.5 million in line of credit borrowings due by June 28, 2026, partially offset by $1.8 million in long-term debt payments.

Current wording

The aggregate balance of current maturities of long-term debt and long-term debt totaled $40.4 million at March 31, 2025, an increase of $16.8 million from the prior fiscal year-end balance of $23.6 million. The increase was primarily due to $16.0 million related to financing the acquisition of Tribute and assumption of $3.8 million of Tribute equipment debt, $200,000 in additional equipment financing and $1.3 million in line of credit borrowings, partially offset by $4.5 million in long-term debt payments.

Previous wording

Contract liabilities totaled $22.5 million at December 31, 2024, an increase of $5.5 million from the prior fiscal year end balance of $17.0 million. The increase was due to a difference in the timing of project billings at December 31, 2024, as compared to September 30, 2024.

Current wording

Contract liabilities totaled $22.9 million at March 31, 2025, an increase of $6.0 million from the prior fiscal year end balance of $17.0 million. The increase was due to a difference in the timing of project billings at March 31, 2025, as compared to September 30, 2024.

Previous wording

Accounts payable totaled $26.8 million at December 31, 2024, an increase of $3.1 million from the prior fiscal year end balance of $23.7 million. The increase was due to the timing of accounts payable payments as compared to September 30, 2024 and $1.6 million in accounts payable for Tribute at December 31, 2024.

Current wording

Accounts payable totaled $22.6 million at March 31, 2025, a decrease of $1.1 million from the prior fiscal year end balance of $23.7 million. The decrease was due to the timing of accounts payable payments as compared to September 30, 2024.

Previous wording

Income tax payable totaled $2.3 million at December 31, 2024, an increase of $98,000 from the prior fiscal year end balance of $2.2 million. The increase was primarily related to the taxable income generated during the three months ended December 31, 2024.

Current wording

Income tax payable totaled $304,000 at March 31, 2025, a decrease of $1.9 million from the prior fiscal year end balance of $2.2 million. The decrease was primarily related to income tax payments made during the first six months of fiscal year 2025 and a taxable loss generated during the six months ended March 31, 2025.

Previous wording

Current and long-term operating lease liabilities totaled $2.6 million at December 31, 2024, an increase of $85,000 from the prior fiscal year end balance of $2.5 million. The increase was primarily due to an increase in leased vehicles, partially offset by payments made during the three months ended December 31, 2024.

Current wording

Current and long-term operating lease liabilities totaled $2.5 million at March 31, 2025, a decrease of $28,000 from the prior fiscal year end balance. The decrease was primarily due to payments made during the six months ended March 31, 2025, partially offset by an increase in leased vehicles.

Previous wording

Lines of credit and short-term borrowings totaled $10.3 million at December 31, 2024, an increase of $25,000 from the prior fiscal year end balance. The increase was due to interest accrued on PPP Loans. Refer to Note 3 “Accounting for PPP Loans” in the accompanying consolidated financial statements for additional details.

Current wording

Lines of credit and short-term borrowings totaled $10.3 million at March 31, 2025, an increase of $50,000 from the prior fiscal year end balance. The increase was due to interest accrued on PPP Loans. Refer to Note 3 “Accounting for PPP Loans” in the accompanying consolidated financial statements for additional details.