Business Context and Reporting Period
Company: Energy Services of America Corporation
Filing Type: Form 8-K (Current Report)
Reporting Date: December 31, 2020
Event: Completion of acquisition of substantially all assets of WV Pipeline, Inc., a West Virginia corporation based in Princeton, WV.
Key Financial Metrics
This filing details a specific transaction rather than full-period financial performance. The filing text does not provide clear values for revenue, profit, cash flow, margins, or total debt for the reporting period.
| Transaction Component | Value |
|---|---|
| Cash Consideration | $3.5 million |
| Seller Note (5-year term, 3.25% interest) | $3.0 million |
| Total Consideration | $6.5 million |
| Funding Source | Existing line of credit with United Bank, WV |
Material Changes
- Asset Acquisition: Energy Services acquired WV Pipeline, Inc. on December 31, 2020.
- Management Continuity: Previous owners David Bolton and Daniel Bolton will serve as President and Vice President, respectively, of the new subsidiary.
- Capital Structure: The acquisition increased debt obligations via a new seller note and utilization of an existing credit line.
Guidance, Outlook, and Risks
Financial Statements: Financial statements of the acquired business and pro forma financial information are not included in this filing. They will be filed by amendment within 71 days of the required filing date.
Risks/Contingencies: The filing does not explicitly list new risks or contingencies beyond the standard obligations of the asset purchase agreement.
Investor Verification Checklist
- Verify the terms of the $3.0 million seller note and its impact on future interest expense.
- Monitor the upcoming amendment to this 8-K for the acquired business's financial statements and pro forma data.
- Confirm the utilization of the United Bank, WV line of credit and any remaining capacity.
- Review the Asset Purchase Agreement (Exhibit 2.1) for any undisclosed liabilities or covenants.