Business Context and Reporting Period
This Form 8-K Current Report was filed by Energy Services of America Corporation (ESOA) on November 21, 2022. The filing addresses a legal development involving ESOA's wholly owned subsidiary, CJ Hughes Construction Company, Inc. ("CJ Hughes").
Key Financial Metrics
This filing does not report standard periodic financial metrics such as revenue, profit, cash flow, margins, debt, or liquidity. The only financial data disclosed relates to a specific legal judgment:
- Total Judgment Awarded: $13,319,076
- Work Performed: $5,883,787
- Interest and Penalties: $5,800,528
- Attorney's Fees: $1,634,761
Material Changes
The material change reported is the receipt of an Amended Judgment Order from the United States District Court for the Western District of Pennsylvania. The court ruled in favor of CJ Hughes against a former customer (the "Defendant") regarding a previously disclosed lawsuit.
Outlook, Risks, and Contingencies
Contingency: The judgment remains subject to potential appeal. The Defendant has 30 days from the entry of judgment to file a notice of appeal. Until the appeal period expires or an appeal is resolved, the collection of the awarded funds is not guaranteed.
Management Commentary: The filing contains no forward-looking guidance or general management commentary beyond the factual reporting of the court order.
Investor Verification Checklist
- Verify the status of the Defendant's appeal within the 30-day window following November 21, 2022.
- Confirm the collectability of the $13.3 million judgment given the Defendant's financial standing.
- Review prior filings to understand the history of the lawsuit and any previous provisions or reserves recorded by ESOA related to this matter.
- Monitor future 8-K filings for updates on the appeal process or actual cash collection.