Company: AWX
Filing Date: 2025-11-07
Form Type: 10-Q
Source: 0001437749-25-033887
Chunk: 17

Company: AVALON HOLDINGS CORP
Filing Date: 2025-11-07
Form: 10-Q
Item: Part I, Item 1
Chunk 17
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  Identifiable assets:                                                                                      
  Waste management services                    $                    39,706      $                   35,100  
  Golf and related operations                                       62,469                          62,500  
  Corporate                                                         62,790                          64,247  
  Subtotal                                                         164,965                         161,847  
  Elimination of intersegment receivables                         ( 74,279                        ( 75,661  
  Total                                        $                    90,686      $                   86,186  

In comparing total assets at September 30, 2025 with those at December 31, 2024, the increase in the total assets of approximately $4.5 million is attributed to an increase in cash and cash equivalents coupled with an increase in accounts receivable generated from improved business activity in both the waste management services and golf and related operations segments, partially offset by a decrease in net property and equipment associated with the golf and related operations segment.

Note 14. Certain Relationships and Related Transactions

AWMS Holdings, LLC

In August 2013, Avalon created a new Ohio limited liability company, AWMS Holdings, LLC, to act as a holding company to form and own a series of wholly owned subsidiaries that will own and operate Class II salt water injection wells and facilities (together the “facilities”). AWMS Holdings, LLC, offers investment opportunities to accredited investors by selling membership units of AWMS Holdings, LLC through private placement offerings. The monies received from these offerings, along with internally contributed capital, are used to construct the facilities necessary for the operation of salt water injection wells. AWMS Water Solutions, LLC, a wholly owned subsidiary of Avalon, manages all the salt water injection well operations, including the marketing and sales function and all decisions regarding the well operations for a percentage of the gross revenues.

In 2014 and 2013, Avalon, through a wholly owned subsidiary made capital contributions totaling approximately $3.4million, which included cash and certain well assets, including the permits, in exchange for membership units of AWMS Holdings, LLC. Through a private placement offering for the purchase of membership units, AWMS Holdings, LLC raised approximately $3.8million from accredited investors in 2014 and 2013. Management and outside directors of Avalon, who qualified as accredited investors, invested approximately $1.0million in AWMS Holdings, LLC.

As a result