SEC Filing Summary: Tengasco, Inc. (Form 8-K)
Business Context and Reporting Period
This Form 8-K was filed by Tengasco, Inc. on June 29, 2012, reporting an event that occurred on June 25, 2012. The filing concerns a cash payment received by the Company's wholly-owned subsidiary, Manufactured Methane Corporation, related to its landfill gas project at the Carter Valley Landfill in Church Hill, Tennessee.
Key Financial Metrics
- Cash Inflow: $999,530.00 received on June 25, 2012.
- Source of Funds: U.S. Department of the Treasury under Section 1603 of the American Recovery and Reinvestment Act of 2009.
- Tax Treatment: The payment is not treated as taxable income but reduces the taxable basis of the project by 50% of the grant amount ($499,765.00).
- Other Metrics: The filing does not provide data on revenue, profit, margins, debt, or liquidity for the period.
Material Changes
The primary material change is the receipt of the $999,530.00 cash grant. As a result of accepting this payment, the Company forfeits the right to claim investment tax credits for this specific facility. The filing does not provide comparative financial data to quantify changes versus prior periods.
Outlook, Risks, and Contingencies
- Recapture Risk: The Company is subject to annual reporting requirements for five years. If the project is assigned to an ineligible nonprofit or governmental entity during this period, the Company may be required to recapture all or a portion of the payment.
- Management Assessment: Management does not anticipate that the payment will be subject to recapture.
- Future Tax Impact: The reduction in the taxable basis of the project will affect future depreciation deductions.
Investor Verification Checklist
- Verify the exact amount of the cash payment received ($999,530.00) against the Company's cash flow statement for the quarter ending June 30, 2012.
- Confirm the adjustment to the project's taxable basis in the Company's tax provision disclosures.
- Review subsequent filings to ensure compliance with the five-year annual reporting requirement and monitor for any recapture events.
- Note that the registrant name in the filing is Tengasco, Inc., not Riley Exploration Permian, Inc. as indicated in the request metadata.