Artesian Resources Corp. Files 2023 Annual Report on Form 10-K

TL;DR

<b>Artesian Resources Corp. has submitted its 2023 annual report (10-K) detailing its financial performance and operations for the fiscal year ending December 31, 2023.</b>

AI Summary

ARTESIAN RESOURCES CORP (ARTNB) filed a Annual Report (10-K) with the SEC on March 18, 2024. Artesian Resources Corp. filed its 2023 Form 10-K on March 18, 2024. The company is incorporated in Delaware and operates in the Water Supply industry (SIC 4941). Its principal business address is 664 Churchmans Rd, Newark, DE 19702. The filing covers the fiscal year ending December 31, 2023. The company's fiscal year end is December 31.

Why It Matters

For investors and stakeholders tracking ARTESIAN RESOURCES CORP, this filing contains several important signals. This filing provides a comprehensive overview of Artesian Resources Corp.'s financial health, operational performance, and strategic direction for the past fiscal year, crucial for investors and stakeholders to assess the company's value and future prospects. As a regulated utility, the 10-K filing is a key document for understanding Artesian Resources Corp.'s compliance, financial stability, and any potential risks or opportunities within the water supply sector.

Risk Assessment

Risk Level: medium — ARTESIAN RESOURCES CORP shows moderate risk based on this filing. The company operates in a regulated industry, which can lead to medium risk due to potential changes in regulations or rate structures that could impact profitability.

Analyst Insight

Investors should review the detailed financial statements and risk factors in the 10-K to understand Artesian Resources Corp.'s performance and outlook in the regulated water utility sector.

Key Numbers

• 2023-12-31 — Fiscal Year End (Reporting period)
• 2024-03-18 — Filing Date (Date of submission)
• 0000863110 — Accession Number (Unique identifier for the filing)

Key Players & Entities

• ARTESIAN RESOURCES CORP (company) — Filer name
• 0000863110 (company) — Central Index Key
• 4941 (company) — Standard Industrial Classification (Water Supply)
• DE (company) — State of Incorporation
• 3024536900 (company) — Business Phone
• 20231231 (date) — Fiscal Year End
• 20240318 (date) — Filing Date

FAQ

Risk Factors

• Regulatory Environment [medium — regulatory]: The company operates in a highly regulated industry, subject to various federal, state, and local regulations that impact its operations, rates, and capital expenditures.
• Financing and Capital Requirements [medium — financial]: The company requires significant capital for infrastructure improvements and expansion, and its ability to secure financing on favorable terms is critical.
• Water Supply and Infrastructure [medium — operational]: Maintaining the integrity and capacity of its water supply systems and infrastructure is essential to meet customer demand and regulatory standards.

Key Dates

• 2023-12-31: Fiscal Year End — End of the reporting period for the 10-K.
• 2024-03-18: Filing Date — Date the 10-K was officially submitted to the SEC.

Key Financial Figures

• $6.4 million — dlesex Water Company, or Middlesex, for $6.4 million in cash and other consideration, includ
• $2.1 million — nsideration, including forgiveness of a $2.1 million note due from Middlesex. This acquisiti

Filing Documents

• form10k.htm (10-K) — 2761KB
• ex21.htm (EX-21) — 12KB
• ex23.htm (EX-23) — 2KB
• ex31-1.htm (EX-31.1) — 13KB
• ex31-2.htm (EX-31.2) — 13KB
• ex32.htm (EX-32) — 7KB
• ex97.htm (EX-97) — 23KB
• image01.jpg (GRAPHIC) — 90KB
• image02.jpg (GRAPHIC) — 24KB
• 0000863110-24-000011.txt (&nbsp;) — 13163KB
• artna-20231231.xsd (EX-101.SCH) — 87KB
• artna-20231231_cal.xml (EX-101.CAL) — 100KB
• artna-20231231_def.xml (EX-101.DEF) — 465KB
• artna-20231231_lab.xml (EX-101.LAB) — 1257KB
• artna-20231231_pre.xml (EX-101.PRE) — 689KB
• form10k_htm.xml (XML) — 2218KB

FORWARD LOOKING STATEMENTS

FORWARD LOOKING STATEMENTS PART I

– Risk Factors

Item 1A. – Risk Factors

. – Unresolved Staff Comments

Item 1B . – Unresolved Staff Comments

– Cybersecurity

Item 1C – Cybersecurity

– Properties

Item 2. – Properties

– Legal Proceedings

Item 3. – Legal Proceedings

– Mine Safety Disclosures

Item 4. – Mine Safety Disclosures PART II

– Market for Registrant's Common Equity, Related Stockholder Matters and

Item 5. – Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities

. – [ Reserved ]

Item 6 . – [ Reserved ]

. – Management's Discussion and Analysis of Financial Condition and Results of

Item 7 . – Management's Discussion and Analysis of Financial Condition and Results of Operations

. – Quantitative and Qualitative Disclosure About Market Risk

Item 7A . – Quantitative and Qualitative Disclosure About Market Risk

– Financial Statements and Supplementary Data

Item 8. – Financial Statements and Supplementary Data

. – Changes in and Disagreements With Accountants on Accounting and Financial

Item 9 . – Changes in and Disagreements With Accountants on Accounting and Financial Disclosure

. – Controls and Procedures

Item 9A . – Controls and Procedures

. – Other Information

Item 9B . – Other Information

– Disclosure Regarding Foreign Jurisdictions that

Item 9C. – Disclosure Regarding Foreign Jurisdictions that Prevent Inspections PART III

– Directors, Executive Officers and Corporate Governance

Item 10. – Directors, Executive Officers and Corporate Governance

. – Executive Compensation

Item 11 . – Executive Compensation

. – Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Item 12 . – Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

. – Certain Relationships and Related Transactions, and Director Independence

Item 13 . – Certain Relationships and Related Transactions, and Director Independence

– Principal Accountant Fees and Services

Item 14. – Principal Accountant Fees and Services PART IV

. – Exhibits and Financial Statement Schedules

Item 15 . – Exhibits and Financial Statement Schedules

– Form 10-K Summary

Item 16. – Form 10-K Summary

SIGNATURES

SIGNATURES Exhibit 21-Subsidiaries of the Company Exhibit 23.1-Consent of BDO USA, P.C. Exhibit 31.1-Certification of Chief Executive Officer Exhibit 31.2-Certification of Chief Financial Officer Exhibit 32-Certification of Chief Executive Officer and Chief Financial Officer 2 Table of Contents

FORWARD-LOOKING STATEMENTS

FORWARD-LOOKING STATEMENTS historical fact, are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934, as amended, or the Exchange Act and the Private Securities Litigation Reform Act of 1995 and involve risks and uncertainties that could cause actual results to differ materially from those projected. Words such as "expects", "anticipates", "intends", "plans", "believes", "seeks", "estimates", "projects", "forecasts", "may", "should", variations of such words and similar expressions are intended to identify such forward-looking statements. They include, but are not limited to, the statements below: - general economic, employment and business conditions; - material costs and availability; - consumer and producer price inflation; - the impact of recent acquisitions on our ability to expand and foster relationships; - strategic plans for goals, priorities, growth and expansion; - expectations for our water and wastewater subsidiaries and non-utility subsidiaries; - customer base growth opportunities in Delaware and Cecil County, Maryland; - our belief regarding our capacity to provide water services for the foreseeable future to our customers; - our belief relating to our compliance and the cost to achieve compliance with relevant governmental regulations; - our expectation of the timing of decisions by regulatory authorities; - the impact of weather and climate change on our operations; - the execution of our strategic initiatives; - our expectation regarding the timing for construction on new projects; - the adoption of recent accounting pronouncements from time to time; - contract operations opportunities; - legal proceedings; - our properties; - deferred tax assets; - the adequacy of our avail

BUSINESS

ITEM 1. BUSINESS General Information Artesian Resources Corporation, or Artesian Resources, is a Delaware corporation incorporated in 1927, that is the holding company of eight wholly-owned subsidiaries offering water, wastewater and other services in Delaware, Maryland and Pennsylvania. The Company's principal executive offices are located at 664 Churchmans Road, Newark, Delaware 19702. Our principal subsidiary, Artesian Water Company, Inc., is the oldest and largest investor-owned public water utility on the Delmarva Peninsula and has been providing superior water service since 1905. We distribute and sell water, including water for public and private fire protection, to residential, commercial, industrial, municipal and utility customers in the states of Delaware, Maryland and Pennsylvania. We provide wastewater services to customers in Delaware. In addition, we provide contract water and wastewater operations, and water, sewer and internal Service Line Protection Plans. Our Class A Non-Voting Common Stock is listed on the Nasdaq Global Select Market and trades under the symbol "ARTNA." Our Class B Common Stock trades on the Nasdaq's OTC Bulletin Board under the symbol "ARTNB." Artesian Resources is the holding company of five regulated public utilities: Artesian Water Company, Inc., or Artesian Water, Artesian Water Pennsylvania, Inc., or Artesian Water Pennsylvania, Artesian Water Maryland, Inc., or Artesian Water Maryland, Artesian Wastewater Management, Inc., or Artesian Wastewater, and Artesian Wastewater Maryland, Inc., or Artesian Wastewater Maryland; and three non-utility subsidiaries: Artesian Utility Development, Inc., or Artesian Utility, Artesian Development Corporation, or Artesian Development, and Artesian Storm Water Services, Inc., or Artesian Storm Water. Effective January 14, 2022, Artesian Wastewater is the holding company of Tidewater Environmental Services, Inc. dba Artesian Wastewater, or TESI, a regulated public utility. The terms "we,"

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View this 10-K filing on SEC EDGAR