KOIL Energy Announces Delay in Filing of Annual Report on Form 10-K and anticipates reporting profitable growth in revenues

Rhea-AI Summary

Koil Energy Solutions (OTCQB: KLNG) has announced a delay in filing its Annual Report on Form 10-K for fiscal year 2024, extending beyond the original March 31, 2025 deadline. The company will utilize a 15-day extension granted by the SEC due to the discovery of a material weakness in internal control over financial reporting.

The delay stems from the need to complete additional audit procedures following the identification of a $140,000 accounting adjustment related to expired stock options that were incorrectly reversed under Accounting Standards Codification 718. Despite this material weakness, the company states this adjustment is not expected to materially impact its financial position or operations.

Notably, KLNG anticipates reporting profitable growth in revenues for both Q4 and full-year 2024 compared to previous periods. The company plans to announce a new filing date and earnings call timing soon.

Positive

• Anticipates profitable growth in revenues for Q4 and full-year 2024

Negative

• Material weakness identified in internal control over financial reporting
• $140,000 accounting adjustment required for expired stock options
• Delay in filing Annual Report Form 10-K

HOUSTON, March 29, 2025 (GLOBE NEWSWIRE) -- Koil Energy Solutions, Inc. (OTCQB: KLNG), (the “Company”) today announced that it will be filing its Annual Report on Form 10-K for the fiscal year ended December 31, 2024, with the Securities and Exchange Commission (the “SEC”) later than the originally scheduled date of March 31, 2025. The Company anticipates filing the Annual Report within the extended timeframe granted by the SEC of fifteen days. The delay is due to the requirement to complete certain audit procedures after a material weakness in internal control over financial reporting was discovered during the final review cycle. The Company’s financial statements are being updated to reflect a $140,000 accrual for expired stock options that had been reversed in a manner inconsistent with Accounting Standards Codification 718. Although this adjustment constitutes a material weakness in internal control over financial reporting, the Company does not believe that it will have a material adverse impact on the Company’s financial position or results of operations. The Company anticipates reporting continued profitable growth in revenues during the quarter and year ended December 31, 2024, compared to the prior periods.

The Company is working diligently to complete all remaining audit procedures and intends to file the Annual Report on Form 10-K as soon as possible. We will announce a new filing date and earnings call shortly.

About KOIL (www.koilenergy.com)

KOIL Energy is a leading energy services company offering subsea equipment and support services to the world's energy and offshore industries. We provide innovative solutions to complex customer challenges presented between the production facility and the energy source. Our core services and technological solutions include distribution system installation support and engineering services, umbilical terminations, loose-tube steel flying leads, and related services. Additionally, KOIL Energy's experienced team can support subsea engineering, manufacturing, installation, commissioning, and maintenance projects located anywhere in the world.

Forward-Looking Statements

Any forward-looking statements in the preceding paragraphs of this release are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Investors are cautioned that such forward-looking statements involve risks and uncertainties in that actual results may differ materially from those projected in the forward-looking statements. In the course of operations, we are subject to certain risk factors, competition and competitive pressures, sensitivity to general economic and industrial conditions, international political and economic risks, availability and price of raw materials and execution of business strategy. For further information, please refer to the Company's filings with the Securities and Exchange Commission, copies of which are available from the Company without charge.

Investor Relations:

ir@koilenergy.com

281-862-2201

FAQ

What caused KLNG's Form 10-K filing delay in March 2025?

A material weakness in internal control was discovered, requiring additional audit procedures due to a $140,000 accounting adjustment for expired stock options.

When will Koil Energy (KLNG) file its delayed 2024 Annual Report?

The company plans to file within the SEC's 15-day extension period, beyond the original March 31, 2025 deadline.

How significant is the $140,000 accounting adjustment for KLNG's financials?

The company states the adjustment will not have a material adverse impact on its financial position or operations.

What is KLNG's financial performance outlook for 2024?

The company anticipates reporting profitable growth in revenues for both Q4 and full-year 2024 compared to prior periods.