Note

– Basis of Presentation

Enservco Corporation (“

Enservco”) and its wholly-owned subsidiaries (collectively referred to as the “Company”, “we” or “us”) provides various services to the domestic onshore oil and natural gas industry. These services include frac water heating, hot oiling and acidizing (well enhancement services); and water transfer and water treatment services (Water Transfer Services).

The accompanying consolidated financial statements have been derived from the accoun

ting records of Enservco Corporation, Heat Waves Hot Oil Service LLC (“Heat Waves”), Dillco Fluid Service, Inc. (“Dillco”), Heat Waves Water Management LLC (“HWWM”), and Adler Hot Oil Service, LLC ("Adler") (collectively, the “Company”) as of

December 31, 2018

and

2017

and the results of operations for the years then ended.

The below table provides an overview of the Company

’s current ownership hierarchy:

Name	State of Formation	Ownership	Business
Heat Waves Hot Oil Service LLC	Colorado	100% by Enservco	Oil and natural gas well services, including logistics and stimulation.

Adler Hot Oil Service, LLC	Delaware	100% by Enservco	Oil and natural gas well services, including logistics and stimulation.

Heat Waves Water Management LLC	Colorado	100% by Enservco	Water Transfer and Water Treatment Services.

Dillco Fluid Service, Inc.	Kansas	100% by Enservco	Discontinued operation in 2018.

HE Services LLC (“ HES”)	Nevada	100% by Heat Waves	No active business operations. Owns construction equipment used by Heat Waves.

October 29, 2018,

Enservco announced that it would be selling or closing the Dillco water hauling business, its associated facilities, and real estate. Effective

November 1, 2018,

the Dillco water hauling business ceased operations for customers.

The accompanying consolidated financial statements were prepared in accordance with accounting principles generally accepted in the United States of America (“

GAAP”)

All significant inter-company balances and transactions have been eliminated in the accompanying consolidated financial statements.