Energy Services of America CORP Debt Disclosure
15. | SHORT-TERM AND LONG-TERM DEBT |
A summary of short-term and long-term debt as of September 30, 2025 and 2024 is as follows:
September 30, | September 30, | |||||
| 2025 | | 2024 | |||
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Line of credit payable to bank, monthly interest at 7.25%, final payment due by June 28, 2027, guaranteed by certain directors of the Company. | $ | 24,750,000 | $ | 4,500,000 | ||
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Equipment line of credit with a total of $9.3 million with payments of $202,809 due in monthly installments, including fixed interest at 7.25% and final payment due February 2028, secured by equipment, guaranteed by certain directors of the Company. | 5,878,041 | 7,802,313 | ||||
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Paycheck Protection Program loans from Small Business Administration, 1.0% simple interest, initially forgiven in the fiscal year ended September 30, 2021. Final forgiveness decision has not been determined. | 10,401,366 | 10,292,676 | ||||
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Term note payable to United Bank, WV Pipeline acquisition, due in monthly installments of $64,853, including fixed interest at 4.25%, final payment due by March 25, 2026, secured by receivables and equipment, guaranteed by certain directors of the Company. |
| 390,328 |
| 1,134,185 | ||
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Notes payable to finance companies, due in monthly installments totaling $244,000 at September 30, 2025 and $76,000 at September 30, 2024, including interest ranging from 0.00% to 6.0%, final payments due October 2025 through September 2028, secured by equipment. |
| 5,415,401 |
| 1,787,009 | ||
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Notes payable to United Bank, Tribute acquisition finance, due in monthly installments totaling $272,016, including fixed interest at 6.9%, final payment due December 2030 secured by receivables and equipment, guaranteed by certain directors of the Company. |
| 14,164,413 |
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Notes payable to bank, due in monthly installments totaling $7,848, including interest at 4.82%, final payment due November 2034 secured by building and property. | 710,466 | 762,670 | ||||
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Notes payable to bank, due in monthly installments totaling $59,932, including fixed interest at 6.0%, final payment due October 2027 secured by receivables and equipment, guaranteed by certain directors of the Company. |
| 1,411,890 |
| 2,024,847 | ||
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Equipment line of credit with a total of $5.0 million borrowings available, including fixed interest at 8.5% for purchases made in the first twelve months. After twelve months the borrowings will be converted to a forty-eight month term note agreement with a fixed interest rate equal to the “U.S. Treasury Rate” plus 2.75% per annum. Final payment due August 2029. The agreement is guaranteed by certain directors of the Company. | 4,910,097 | — | ||||
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Unsecured notes payable to Joe and Cathy Rigney, five-year agreement for monthly fixed interest at 5.0% of sellers’ notes, with $500,000 due September 30, 2030. $461,000 fair value at September 30, 2025. |
| 461,000 |
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Notes payable to David Bolton and Daniel Bolton, due in annual installments totaling $500,000, including interest at 3.25%, final payment due December 31, 2025, unsecured. |
| 500,000 |
| 940,000 | ||
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Note payable to United Bank, Tri-State Paving acquisition, due in monthly installments of $129,910, including fixed interest at 4.50%, final payment due by June 1, 2027, secured by receivables and equipment, guaranteed by certain directors of the Company. | 2,961,211 | 4,359,883 | ||||
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Notes payable to Corns Enterprises, $1,000,000 with fair value of $936,000, due in annual installments totaling $250,000, including interest at 3.50%, final payment due April 29, 2026, unsecured. | 250,000 | 250,000 | ||||
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Total debt | $ | 72,204,213 | $ | 33,853,583 | ||
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Less current maturities |
| 21,948,182 |
| 16,665,591 | ||
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Total long term debt | $ | 50,256,031 | $ | 17,187,992 | ||
At September 30, 2025, future expected payments due on short-term and long-term debt are as follows:
2026 | | $ | 21,948,182 |
2027 |
| 34,649,826 | |
2028 |
| 6,552,086 | |
2029 |
| 4,291,722 | |
2030 |
| 3,637,104 | |
Thereafter |
| 1,125,293 | |
$ | 72,204,213 |
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Dec 15, 2025 | Showing above |
| 2024 | Dec 19, 2024 | |
| 2023 | Jan 16, 2024 | |
| 2022 | Dec 22, 2022 | |
| 2021 | Dec 29, 2021 | |
| 2020 | Jan 5, 2021 | |
| 2019 | Dec 20, 2019 | |
| 2018 | Dec 28, 2018 | |
| 2017 | Dec 15, 2017 | |
| 2016 | Dec 15, 2016 | |
| 2015 | Dec 17, 2015 | |
About Debt Disclosures
Debt disclosures detail a company's borrowing structure — the types of instruments, interest rates, maturity schedule, and covenant restrictions that define its financial obligations and flexibility. This section is essential for assessing refinancing risk, interest rate exposure, and the margin of safety against financial distress.
Key signals: the maturity schedule reveals concentration risk — large maturities within 1-2 years during tight credit markets can force dilutive refinancing or asset sales. Compare the fair value of debt against carrying amount to gauge whether the market views the company's credit risk differently than the balance sheet suggests. Watch covenant compliance disclosures for tightening cushions, especially leverage and interest coverage ratios. Variable-rate debt exposure quantifies sensitivity to interest rate changes. Secured versus unsecured mix affects recovery rates and future borrowing capacity. Compare net debt-to-EBITDA against industry peers and covenant limits to assess financial health.