KOIL Energy Solutions Delays 10-K Filing, Anticipates Revenue Growth

Houston-based Koil Energy Solutions, Inc. (OTCQB: KLNG) recently announced a delay in filing its Annual Report on Form 10-K for the fiscal year ended December 31, 2024. The company, a leading provider of subsea equipment and support services to the energy and offshore industries, cited a material weakness in its internal control over financial reporting as the reason for the delay. The company has been granted a 15-day extension by the Securities and Exchange Commission (SEC) to complete the necessary audit procedures.

The delay stems from the discovery of a $140,000 accrual for expired stock options that were reversed inconsistently with Accounting Standards Codification 718. While this adjustment constitutes a material weakness, the company does not believe it will have a material adverse impact on its financial position or results of operations. KOIL Energy Solutions is working diligently to complete all remaining audit procedures and intends to file the Annual Report on Form 10-K as soon as possible.

Despite the delay, KOIL Energy Solutions anticipates reporting continued profitable growth in revenues during the quarter and year ended December 31, 2024, compared to the prior periods. The company's proactive approach to addressing the material weakness and its commitment to transparency and timely communication can help mitigate potential negative perceptions and maintain investor confidence.



The company's strong financial performance in the third quarter of 2024 was underpinned by its proactive growth strategy, which has resulted in a robust pipeline of projects and contracts. For instance, KOIL recently secured a significant contract to supply Multi-Quick Connector (MQC) Plates for a project in the Gulf of Mexico, further solidifying its position in the subsea equipment market.

Investors will be particularly interested in how these trends have continued into the fourth quarter. The company's strong financial performance in the third quarter was underpinned by its proactive growth strategy, which has resulted in a robust pipeline of projects and contracts. For instance, KOIL recently secured a significant contract to supply Multi-Quick Connector (MQC) Plates for a project in the Gulf of Mexico, further solidifying its position in the subsea equipment market.

The conference call, scheduled for the same day as the earnings release, will offer investors and analysts the opportunity to gain deeper insights into the company's performance and future prospects. Erik Wiik, President and CEO of KOIL, will lead the call, providing an overview of the company's financial results and strategic initiatives. Investors can expect to hear about the company's expansion into new markets, such as Brazil, and its strategic alliances with industry leaders like SubseaDesign AS. These initiatives are part of KOIL's broader strategy to push the boundaries of subsea field development and capitalize on the growing demand for subsea infrastructure.

In conclusion, KOIL Energy Solutions' upcoming earnings release and conference call provide a timely opportunity for investors to assess the company's performance and growth prospects. With a strong financial performance in the third quarter and a robust pipeline of projects, KOIL is well-positioned to capitalize on the growing demand for subsea infrastructure. Investors should closely monitor the company's financial results and strategic initiatives, as these will be key drivers of future growth and market share expansion.

Ask Aime: "Koil Energy Solutions' (KLNG) material weakness in financial reporting and its impact on investor confidence."