Business Context and Reporting Period
Company: Energy Services of America Corporation
Filing Type: Form 8-K (Current Report)
Report Date: December 31, 2020
Event: Completion of the acquisition of WV Pipeline, Inc., a West Virginia corporation based in Princeton, West Virginia.
Key Financial Metrics
This filing reports on a specific transaction rather than periodic financial performance. No revenue, profit, cash flow, or margin data is provided in this document.
| Transaction Component | Value |
|---|---|
| Cash Consideration | $3.5 million |
| Seller Note Principal | $3.0 million |
| Note Term | 5 years |
| Note Interest Rate | 3.25% |
Material Changes
The primary material change is the expansion of the company's operations through the acquisition of WV Pipeline, Inc. The previous owners, David Bolton and Daniel Bolton, have been retained as President and Vice President, respectively, of the new subsidiary.
Guidance, Outlook, and Risks
The filing does not contain forward-looking guidance, management commentary on future outlook, or specific risk factors beyond the standard disclosure of the transaction terms. The filing includes a press release as Exhibit 99.1, which is furnished but not deemed filed for any purpose.
Investor Verification Checklist
- Verify the integration status of WV Pipeline, Inc. into Energy Services' operations.
- Confirm the impact of the $3.5 million cash outflow on the company's liquidity position.
- Review the terms of the $3.0 million seller note for any covenants or repayment schedules not detailed in the summary.
- Assess the strategic fit of the new subsidiary's pipeline assets with the company's existing service offerings.