Energy Services of America CORP Goodwill & Intangibles Disclosure
27.GOODWILL AND INTANGIBLE ASSETS
The Company follows the guidance of ASC 350-20-35-3 “Intangibles-Goodwill and Other (Topic 350)” which requires a company to record an impairment charge based on the excess of a reporting unit’s carrying amount of goodwill over its fair value. Under the current guidance, companies can first choose to assess any impairment based on qualitative factors (Step 0). If a company fails this test or decides to bypass this step, it must proceed with a quantitative assessment of goodwill impairment. The Company did not have a goodwill impairment at September 30, 2025 or 2024.
A table of the Company’s goodwill is below:
September 30, | September 30, | |||||
| 2025 | | 2024 | |||
Beginning balance |
| $ | 4,087,554 |
| $ | 4,087,554 |
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Acquired |
| 5,778,250 |
| — | ||
Ending balance | $ | 9,865,804 | $ | 4,087,554 | ||
A table of the Company’s intangible assets subject to amortization at September 30, 2025 and 2024, is below:
| | | Accumulated | | Accumulated | | Amortization and | | Amortization and | | | ||||||||||||
Remaining Life | Amortization and | Amortization and | Impairment | Impairment | Net Book | Net Book | |||||||||||||||||
(in months) at | Impairment at | Impairment at | Twelve Months Ended | Twelve Months Ended | Value at | Value at | |||||||||||||||||
September 30, | Original | September 30, | September 30, | September 30, | September 30, | September 30, | September 30, | ||||||||||||||||
Intangible assets: | 2025 | Cost | 2025 | 2024 | 2025 | 2024 | 2025 | 2024 | |||||||||||||||
West Virginia Pipeline: |
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Customer relationships | 63 | $ | 2,209,724 | 1,049,610 | $ | 828,630 | 220,980 | 220,969 | $ | 1,160,114 | $ | 1,381,094 | |||||||||||
Tradename | 63 | 263,584 | 125,215 | 98,863 | 26,352 | 26,363 | 138,369 | 164,721 | |||||||||||||||
Non-competes | — | 83,203 | 83,203 | 83,203 | — | — | — | — | |||||||||||||||
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Heritage Painting |
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Customer relationships | 45 | 121,100 | 30,270 | 6,054 | 24,216 | 6,054 | 90,830 | 115,046 | |||||||||||||||
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Tri-State Paving: |
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Customer relationships | 79 | 1,649,159 | 563,463 | 398,547 | 164,916 | 164,916 | 1,085,696 | 1,250,612 | |||||||||||||||
Tradename | 79 | 203,213 | 69,431 | 49,110 | 20,321 | 20,321 | 133,782 | 154,103 | |||||||||||||||
Non-competes | — | 39,960 | 39,960 | 39,960 | — | — | — | — | |||||||||||||||
Tribute Contracting & Consultants |
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Non-compete 1 |
| 110 |
| 520,000 | 43,333 |
| — | 43,333 |
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| 476,667 |
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Non-compete 2 |
| 86 |
| 10,000 |
| 1,042 |
| — | 1,042 |
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| 8,958 |
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Tradename | 50 | 80,000 | 13,333 | — | 13,333 | — | 66,667 | — | |||||||||||||||
Backlog |
| 14 |
| 1,320,000 |
| 550,000 |
| — | 550,000 |
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| 770,000 |
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Rigney Digital Systems |
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Tradename | 132 | 657,100 | — | — | — | — | 657,100 | — | |||||||||||||||
Backlog | 24 | 260,600 | — | — | — | — | 260,600 | — | |||||||||||||||
Non-compete | 120 | 46,300 | — | — | — | — | 46,300 | — | |||||||||||||||
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Total intangible assets |
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| $ | 7,463,943 | $ | 2,568,860 | $ | 1,504,367 | $ | 1,064,493 | $ | 438,623 | $ | 4,895,083 | $ | 3,065,576 | |||||||
Amortization expense associated with the identifiable intangible assets is expected to be as follows:
| Amortization Expense | ||
October 2025 to September 2026 | $ | 1,380,684 | |
October 2026 to September 2027 |
| 830,692 | |
October 2027 to September 2028 |
| 590,388 | |
October 2028 to September 2029 |
| 584,354 | |
October 2029 to September 2030 |
| 552,859 | |
After | 956,106 | ||
Total | $ | 4,895,083 | |
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 | |
| 2018 | Dec 28, 2018 | |
| 2017 | Dec 15, 2017 | |
| 2016 | Dec 15, 2016 | |
| 2015 | Dec 17, 2015 | |
About Goodwill & Intangibles Disclosures
Goodwill and intangible asset disclosures reveal the premium paid in acquisitions and how management assesses whether that premium retains its value. Since goodwill is no longer amortized under US GAAP, the annual impairment test is the only mechanism that adjusts carrying values downward — making the assumptions behind that test critically important for investors.
Key signals: a history of goodwill impairments suggests management consistently overpays for acquisitions. Watch the gap between reporting unit fair value and carrying amount — when fair value exceeds carrying amount by less than 10-20%, a small decline in business performance could trigger a write-down. For finite-lived intangibles, examine useful life assumptions across customer relationships, technology, and trade names; aggressive estimates inflate near-term earnings. Compare total intangibles-to-total-assets ratios against peers to assess acquisition dependency. Rising goodwill as a percentage of equity can signal balance sheet fragility.