Enservco Corp. Files 2023 Annual Report on Form 10-K

TL;DR

<b>Enservco Corporation filed its 2023 10-K, reporting $26.6M in assets and a net income of $6,907.</b>

AI Summary

Enservco Corp filed a Annual Report (10-K) with the SEC on March 29, 2024. Enservco Corporation reported total assets of $26,592,637 as of December 31, 2023. The company's net income for the fiscal year ended December 31, 2023, was $6,907. Total debt for Enservco Corporation was $11,828,846 as of December 31, 2023. Revenue from Production Services was $43,591 for the fiscal year ended December 31, 2023. Enservco Corporation's operating margin for the fiscal year ended December 31, 2023, was 0.005.

Why It Matters

For investors and stakeholders tracking Enservco Corp, this filing contains several important signals. The filing provides a comprehensive overview of Enservco's financial performance and position for the fiscal year 2023, including detailed financial statements and risk factors. Investors can use this 10-K to assess the company's operational efficiency, debt levels, and overall financial health, aiding in investment decisions.

Risk Assessment

Risk Level: medium — Enservco Corp shows moderate risk based on this filing. The company operates in the oil and gas field services sector, which is subject to significant commodity price volatility and regulatory changes, impacting its revenue and profitability.

Analyst Insight

Monitor Enservco's ability to manage its debt and improve revenue generation in its Production Services segment in upcoming filings.

Revenue Breakdown

Key Numbers

• 26,592,637 — Total Assets (As of December 31, 2023.)
• 6,907 — Net Income (For the fiscal year ended December 31, 2023.)
• 11,828,846 — Total Debt (As of December 31, 2023.)
• 43,591 — Production Services Revenue (For the fiscal year ended December 31, 2023.)
• 0.005 — Operating Margin (For the fiscal year ended December 31, 2023.)

Key Players & Entities

• Enservco Corp (company) — Filer of the 10-K report.
• 2023-12-31 (date) — Fiscal year end date for the report.
• 2024-03-29 (date) — Filing date of the report.
• $26,592,637 (dollar_amount) — Total assets as of December 31, 2023.
• $6,907 (dollar_amount) — Net income for the fiscal year ended December 31, 2023.
• $11,828,846 (dollar_amount) — Total debt as of December 31, 2023.
• $43,591 (dollar_amount) — Revenue from Production Services for the fiscal year ended December 31, 2023.
• 0.005 (percentage) — Operating margin for the fiscal year ended December 31, 2023.

FAQ

Risk Factors

• Volatility in Oil and Gas Prices [high — market]: The company's financial results are significantly impacted by fluctuations in the prices of oil and natural gas, which can affect demand for its services.
• Environmental and Safety Regulations [medium — regulatory]: Compliance with stringent environmental and safety regulations in the oil and gas industry is critical and can lead to increased operational costs.

Key Financial Figures

• $0.005 — ange on which registered Common stock, $0.005 par value ENSV NYSE American Securi
• $0.322 — ice of the Registrant's common stock of $0.322 as of June 30, 2023, the last trading d
• $0.55 — warrants are exercisable at a price of $0.55 per share, and have a five year term. T
• $3.2 m — the February 2023 Public Offering were $3.2 million, after deducting placement agent
• $1.1 million — r and Chairman, converted approximately $1.1 million principal amount of the March 2022 Conv
• $148,950 — Cross River: 1) converted the remaining $148,950 principal balance of the March 2022 Con
• $1,200,000 — ny common stock 2) converted the entire $1,200,000 principal balance of the July 2022 Conv
• $750,000 — rtible promissory note in the amount of $750,000 to Cross River and a convertible promis
• $50,000 — rtible promissory note in the amount of $50,000 to Kevin Chesser ("Chesser"), a directo
• $125,000 — es in the aggregate principal amount of $125,000 to Angel Capital Partners, LP ("Angel C
• $187,500 — ), and in aggregate principal amount of $187,500 to Equigen, II, LLC ("Equigen"), an ent
• $1,057,500 — f the Company's common stock, valued at $1,057,500. The total shares issued at closing was
• $150,000 — nt, Cross River purchased an additional $150,000 of the September and October 2023 Conve
• $100,000 — Executive Officer and Chair, purchased $100,000 of the September and October 2023 Conve
• $77.58 — 31, 2023, WTI crude oil price averaged $77.58 per barrel which is significantly highe

Filing Documents

• ensv20231231c_10k.htm (10-K) — 1430KB
• ex_608100.htm (EX-21.1) — 4KB
• ex_608101.htm (EX-23.1) — 3KB
• ex_608103.htm (EX-31.1) — 13KB
• ex_608104.htm (EX-31.2) — 14KB
• ex_608105.htm (EX-32.1) — 6KB
• ex_608106.htm (EX-32.2) — 6KB
• ensvlogo.jpg (GRAPHIC) — 22KB
• 0001437749-24-009956.txt (&nbsp;) — 7287KB
• ensv-20231231.xsd (EX-101.SCH) — 63KB
• ensv-20231231_cal.xml (EX-101.CAL) — 58KB
• ensv-20231231_def.xml (EX-101.DEF) — 462KB
• ensv-20231231_lab.xml (EX-101.LAB) — 425KB
• ensv-20231231_pre.xml (EX-101.PRE) — 490KB
• ensv20231231c_10k_htm.xml (XML) — 1017KB

Business

Business 4 Item 1A.

Risk Factors

Risk Factors 9 Item 1B. Unresolved Staff Comments 18 Item 1C. Cybersecurity 20 Item 2. Description of Properties 18 Item 3.

Legal Proceedings

Legal Proceedings 18 Item 4. Mine Safety Disclosures 18 PART II Item 5. Market for Registrant 's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 19 Item 6.

Selected Financial Data

Selected Financial Data 19 Item 7. Management 's Discussion and Analysis of Financial Condition and Results of Operations 20 Item 7A.

Quantitative and Qualitative Disclosures about Market Risk

Quantitative and Qualitative Disclosures about Market Risk 26 Item 8.

Financial Statements

Financial Statements 27 Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 47 Item 9A.

Controls and Procedures

Controls and Procedures 47 Item 9B. Other Information 47 PART III Item 10. Directors, Executive Officers and Corporate Governance 48 Item 11.

Executive Compensation

Executive Compensation 48 Item 12.

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

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 48 Item 13. Certain Relationships and Related Transactions, and Director Independence 48 Item 14. Principal Accountant Fees and Services 48 PART IV Item 15. Exhibits and Financial Statement Schedules 49 Item 16. Summary of Form 10-K 49 2 CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS This Annual Report on Form 10-K ("Annual Report") contains certain statements that are, or may be deemed to be, " forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended (the "Securities Act"), and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). In some cases, you can identify forward-looking statements by terms such as "may," "anticipate," "should," "could," "project," "intend," "estimate," "expect," "believe," "predict," "budget," "goal," "plan," "forecast," "target" and other similar expressions. All statements, other than statements of historical facts, contained in this Annual Report are forward-looking statements. These forward-looking statements, which are subject to known and unknown risks, uncertainties and assumptions about us, may include projections of our future financial performance based on our growth strategies and anticipated trends in our business. These statements are only predictions based on our current expectations and projections about future events. There are important factors that could cause our actual results, level of activity, performance or achievements to differ materially from the results, level of activity, performance or achievements expressed or implied by the forward-looking statements. While we believe we have identified the material risks and uncertainties, and the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, level of activity, performance or achievements. Many f

BUSINESS

ITEM 1. BUSINESS Overview Enservco Corporation ("Enservco") through its wholly owned subsidiary (collectively referred to as the "Company," "we" or "us") provides various services to the domestic onshore oil and natural gas industry. These services include hot oiling and acidizing ("Production Services") and frac water heating ("Completion and Other Services"). We own and operate a fleet of specialized trucks, trailers, frac tanks and other well-site related equipment and serve customers in several major domestic oil and gas producing areas, including the Denver-Julesburg Basin ("DJ Basin")/Niobrara area in Colorado and Wyoming, the San Juan Basin in northwestern New Mexico, the Marcellus and Utica Shale areas in Pennsylvania and Ohio, the Jonah area, Green River and Powder River Basins in Wyoming, and the Eagle Ford Shale and East Texas Oilfield in Texas. The Company's corporate offices are located at 14133 County Road 9 1/2, Longmont, CO 80504. Our telephone number is (303) 333-3678. Our website is www.enservco.com . Recent Developments On February 22, 2023, the Company entered into a Securities Purchase Agreement with certain investors, pursuant to which the Company agreed to issue and sell to the investors in a best-efforts public offering (the "February 2023 Public Offering") (i) 3,900,000 shares of Company common stock, (ii) pre-funded warrants to purchase 3,100,000 shares of Company common stock and (iii) common warrants to purchase 7,000,000 shares of Company common stock. The common warrants are exercisable at a price of $0.55 per share, and have a five year term. The net proceeds from the February 2023 Public Offering were $3.2 million, after deducting placement agent fees and other offering expenses payable by the Company. The Company used the net proceeds for general corporate purposes including working capital, general and administrative expenses, and repayment of outstanding indebtedness. On March 28, 2023, Cross River Partners, LP ("Cross

View Full Filing

View this 10-K filing on SEC EDGAR