Business Context and Reporting Period
Company: Energy Services of America Corporation (ESOA)
Filing Type: Form 8-K (Current Report)
Date of Report: May 18, 2023
Reporting Period: The filing addresses a delinquency regarding the Quarterly Report on Form 10-Q for the period ended March 31, 2023.
Key Financial Metrics
This filing is a current report regarding regulatory compliance and does not contain specific financial performance data such as revenue, profit, cash flow, margins, debt, or liquidity figures. The text notes that the delay in filing the Form 10-Q is due to the need to restate previously issued audited consolidated financial statements for the fiscal years ended September 30, 2022, and 2021, and certain related interim periods.
Material Changes
- Delisting Notification: On May 18, 2023, the Company received a delinquency notification from The Nasdaq Stock Market LLC indicating non-compliance with Nasdaq Listing Rule 5250(c)(1) due to the delayed filing of the Form 10-Q.
- Restatement Requirement: The Company disclosed a need to restate audited financial statements for fiscal years 2022 and 2021, which is the primary cause of the reporting delay.
- Trading Status: The notification letter has no immediate effect on the listing or trading of the Company's common stock on the Nasdaq Capital Market.
Guidance, Outlook, and Risks
Compliance Plan: The Company must submit a plan of compliance to Nasdaq within 60 calendar days (by July 17, 2023). If accepted, Nasdaq may grant an extension of up to 180 calendar days from the original filing due date, potentially until November 13, 2023, to regain compliance.
Management Commentary: Management states it is working diligently to complete the Form 10-Q and intends to file it as soon as practicable.
Risks: The primary risk is the potential delisting from the Nasdaq Capital Market if the Company fails to regain compliance with listing rules within the specified timeframe.
Investor Verification Checklist
- Verify the status of the restatement for fiscal years 2022 and 2021.
- Monitor the submission and acceptance of the Company's compliance plan by July 17, 2023.
- Track the actual filing date of the delayed Form 10-Q for the period ended March 31, 2023.
- Review the attached press release (Exhibit 99.1) for additional details on the delinquency notification.