v3.26.1
SHORT-TERM AND LONG-TERM DEBT
 9 Months Ended
Jun. 30, 2026
SHORT-TERM AND LONG-TERM DEBT  
SHORT-TERM AND LONG-TERM DEBT

13.  SHORT-TERM AND LONG-TERM DEBT

Revolving Credit Facility

Effective June 28, 2026, the Company renewed its $30.0 million revolving line of credit with United Bank, which matures on June 28, 2028. Borrowings under the revolving line of credit bear interest at the one – month Term SOFR plus the applicable margin, as defined in the credit agreement.

Availability under the revolving line of credit is subject to a borrowing base calculation, as summarized below:

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​

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  ​ ​ ​

June 30, 2026

  ​ ​ ​

September 30, 2025

 

Eligible borrowing base

​

$

21,942,645

​

$

27,657,997

​

​

​

​

​

​

​

​

​

Borrowings on line of credit

​

 

12,250,000

​

 

24,750,000

​

​

​

​

​

​

​

​

​

Line of credit balance available

​

$

9,692,645

​

$

2,907,997

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​

​

​

​

​

​

​

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Interest rate

​

 

6.75

%

 

7.50

%

​

The Company’s outstanding borrowings under the revolving line of credit of $12.3 million and $24.8 million at June 30, 2026 and September 30, 2025, respectively, are classified as long-term debt based on the June 28, 2028 contractual maturity date.

The credit agreement contains financial covenants requiring the Company to maintain a minimum Fixed Charge Coverage Ratio of 1.25 to 1.00 and a maximum Senior Funded Debt to EBITDA ratio of 2.75 to 1.00. These financial covenants are tested quarterly in accordance with the terms of the credit agreement. The lender has agreed to exclude the effects of the Company’s PPP loan accounting restatement from covenant compliance calculations while the final determination regarding PPP loan forgiveness remains pending.

The Company was in compliance with all financial covenants as of June 30, 2026 and expects to remain in compliance with its financial covenants for at least the next twelve months.

Paycheck Protection Program Loans

Due to the economic uncertainties created by COVID-19 and limited operating funds available, the Company applied for loans under the PPP. On April 15, 2020, the Company and its subsidiaries, C.J. Hughes, Contractors Rental and Nitro, entered into separate PPP notes effective April 7, 2020, with its Lender in an aggregate principal amount of $13.1 million pursuant to the PPP Loans. In a special meeting held on April 27, 2020, the Board of Directors of the Company unanimously voted to return $3.3 million of the PPP Loans after discussing the financing needs of the Company and subsidiaries. That left the Company and subsidiaries with $9.8 million in PPP Loans to fund operations. During fiscal year 2021, the Company received notice that the SBA had granted forgiveness of the $9.8 million of PPP Loans and the SBA repaid the Lender in full. The forgiveness was recorded as other income for the fiscal year ended September 30, 2021.

During April 2023, management received notification from the SBA that one of the Company’s forgiveness applications related to the PPP Loans was under review. As part of the review, the SBA requested additional payroll information. Additionally, the SBA requested information regarding the ability of the Company’s affiliates to meet SBA size standards and/or PPP corporate maximum limits. The requested information was subsequently provided to the SBA through the Lender. The Company recognizes that there is a possibility that the SBA could reverse its previous determination on the forgiveness of the PPP Loans. As a result of this uncertainty, the Company restated the previously issued audited financial statements of the Company for fiscal 2022 and 2021. The Company has recorded a short-term borrowing due to the SBA inquiry for the full $9.8 million, plus accrued interest.

During July 2023, management received notification from the SBA that two additional forgiveness applications related to the PPP Loans were under review. As part of the review, the SBA requested information regarding the ability of the Company’s affiliates to meet SBA size standards and/or PPP corporate maximum limits. The requested information was subsequently provided to the SBA through the Lender. As of June 30, 2026, there have been no further requests or communications from the SBA relating to the PPP Loans.

Borrowers must retain PPP documentation for at least six years after the date the loan is forgiven or paid in full, and the SBA and SBA Inspector General must be granted these files upon request. The SBA could revisit its forgiveness decision and determine that the Company does not qualify as a whole or in part for loan forgiveness and demand repayment of the loans. In addition, it is unknown what type of penalties could be assessed against the Company if the SBA disagrees with the Company’s certification. Any penalties in addition to the potential repayment of the PPP Loans could negatively impact the Company’s business, financial condition and results of operations and prospects.

A summary of short-term and long-term debt as of June 30, 2026 and September 30, 2025 is as follows:

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June 30, 2026

  ​ ​ ​

September 30, 2025

Line of credit payable to bank, monthly interest at 6.75%, final payment due by June 28, 2028, guaranteed by certain directors of the Company.

​

$

12,250,000

​

$

24,750,000

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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.

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​

4,337,945

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​

5,878,041

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​

​

​

​

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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.

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10,475,870

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10,401,366

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​

​

​

​

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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.

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—

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​

390,328

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​

​

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​

Notes payable to finance companies, due in monthly installments totaling $350,000 at June 30, 2026 and $244,000 at September 30, 2025, including interest ranging from 0.00% to 6.0%, final payments due July 2026 through February 2030, secured by equipment.

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5,505,815

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5,415,401

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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.

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7,560,657

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14,164,413

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​

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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.

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668,343

​

 

710,466

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​

 

​

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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.

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—

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1,411,890

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​

 

​

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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.

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​

4,065,877

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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. $462,950 fair value at September 30, 2025.

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​

466,850

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​

461,000

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​

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​

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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.

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—

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500,000

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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.

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—

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2,961,211

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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.

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—

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250,000

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Total debt

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$

45,331,357

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$

72,204,213

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Less current maturities

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19,505,638

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21,948,182

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Total long term debt

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$

25,825,719

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$

50,256,031

​