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Enservco Corporation

(NYSE: ENSV)

Rigrodsky Law, P.A. is investigating potential claims against the officers and directors of Enservco Corporation ("Enservco" or the "Company") on behalf of stockholders.  A class action complaint has been filed against Enservco.  The complaint alleges that defendants made, or caused to be made, false or misleading statements about Enservco's business, prospects, and operations, including its liquidity, internal controls and procedures, compliance with generally accepted accounting principles ("GAAP"), and financial results.  Specifically, defendants made false and/or misleading statements and/or failed to disclose that: (i) there was a material weakness in Enservco's internal controls over financial reporting as of June 30, 2021, related to its accounting for complex financial instruments and income taxes; (ii) as a result, Enservco lacked effective disclosure controls and procedures; (iii) Enservco did not recognize a loss on the warrant issued to Cross River Partners in connection with the February 2021 Debt for Equity Exchange in accordance with Debt Modifications and Extinguishments ("ASC 470"); (iv) Enservco could no longer realize $1,425,000 of its deferred tax assets under the Internal Revenue Code following the February 2021 Equity Offering in violation of ASC 470; (v) Enservco recognized income for $304,000 in employee retention credits during the quarter ended June 30, 2021 that it was ineligible to receive; (vi) as a result of the foregoing errors, Enservco misrepresented or otherwise omitted numerous items in the financial statements reported in the Company's 2021 third quarter Form 10-Q/A; (vii) the adjustments necessary to correct the foregoing errors materially impacted the financial statements in the 2021 third quarter Form 10-Q/A and, consequently, required a full restatement of those financials; and (viii) accordingly, the financial statements from the 2021 third quarter Form 10-Q/A failed to comply with GAAP.

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Date of signing: 04/23/2024


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