Catégories
parts solar water heater

Réserve de gaz naturel du formulaire 10-K Corning pour: 30 septembre


Entrez à Wall Street avec StreetInsider Premium. Demandez votre essai gratuit d’une semaine ici.


ÉTATS UNIS

TITRES ET ÉCHANGE
COMMISSION

Washington, DC 20549

FORMULE 10-K

ANNUEL
ARTICLE 13 OU 15 (d) RAPPORT

ÉCHANGE DE TITRES
LOI 1934

Pour l’exercice qui s’est terminé
30 septembre 2020

OU

RAPPORT DE TRANSITION FONDÉ SUR L’ARTICLE 13 OU 15 (d) OD

ÉCHANGE DE TITRES
LOI 1934

Numéro de commission:
000-00643

Corning Holding Gaz Naturel
société

(Nom exact du déclarant
comme indiqué dans sa charte)

New York 46-3235589

(État ou autre juridiction
de

établissement ou organisation)

(Employeur I.R.S.

Numéro d’identification)

330 W. William St.

Corning, État de New York 14830

(Adresse du mandant
bureaux de direction, y compris le code postal)

(607) 936-3755

(Téléphone du titulaire
numéro, y compris l’indicatif régional)

Titres enregistrés
conformément à l’article 12 (b) de la loi:

Le titre de chaque classe Un symbole de trading Le nom de chaque bourse à laquelle il est inscrit
Aucun n / a n / a

Titres enregistrés
conformément à l’article 12 (g) de la loi:

Actions ordinaires, valeur faciale
0,01 USD par action

(Titre de la conférence)

Cocher
si la personne inscrite est un émetteur saisonnier bien connu au sens de la règle 405 du Securities Act. OUI [ ] Non. [X]

Cocher
si le déclarant n’est pas tenu de soumettre des rapports conformément à l’article 13 ou 15 (d) de la loi sur les changes. OUI [ ] Non. [X]

Cocher
si le déclarant (1) a soumis tous les rapports requis pour la soumission en vertu de l’article 13 ou 15 (d) de la Bourse des valeurs
La loi de 1934 au cours des 12 mois précédents (ou pour une période si courte que le déclarant devait soumettre de tels rapports),
et (2) sont soumis à de telles exigences d’application pour les 90 derniers jours. OUI [X] Non. [ ]

Cochez si
Le titulaire a soumis par voie électronique chaque fichier de données interactif requis pour la soumission et la publication conformément à la règle 405
Règlement S-T (article 232,405 du présent chapitre) au cours des 12 mois précédents ou pour une période tellement plus courte que le déclarant
était tenu de soumettre et de publier ces fichiers). OUI [X] Non. [ ]

Cocher
si le déclarant est un grand dossier accéléré, un demandeur accéléré, un demandeur accéléré, une petite société déclarante,
ou une entreprise en développement. Voir la définition de «grand remplissage accéléré», «remplissage accéléré», «plus petit
société déclarante »et« société en développement »dans la règle 12b-2 de la loi sur la bourse. (cochez une case):

Grande charge accélérée [ ] Fichier accéléré
[ ] Pas de fichier accéléré [ ] Petite société déclarante [X] Une entreprise émergente en croissance [ ]

Si l’entreprise est en développement, cochez-la
si le déclarant a décidé de ne pas utiliser la période de transition prolongée pour

la conformité à toute comptabilité financière nouvelle ou révisée
normes prévues conformément à l’article 13 (a) de la loi sur les bourses. [ ]

Cochez la case pour voir s’il s’agit d’un inscrit
est une entreprise de grenades (au sens de la règle 12-b2 de la loi). OUI [ ] Non. [X]

Valeur marchande totale
sur les 1 234 434 millions d’actions ordinaires de la personne inscrite détenues par des personnes non liées de la personne inscrite s’élèvent à 19 133 727 USD
au prix moyen acheteur et vendeur de 15,50 $ au 31 mars 2020.

Nombre d’actions ordinaires en circulation
à la fin des opérations le 20 décembre 2020: 3 088 071

DOCUMENTS INCLUS
RÉFÉRENCES

Selon le général
Dans l’instruction G (3) du formulaire 10-K, certaines informations requises par la partie III seront incluses ou par référence à la version finale
déclaration de procuration pour l’assemblée annuelle des actionnaires de Corning Natural Gas Holding, soumise dans les 120 jours suivant
30 septembre 2020 ou sera inclus dans la modification de ce formulaire 10-K, soumis dans ce délai.

Informations contenues dans
ce formulaire 10-K pour l’exercice 2020 inclus dans la référence contient certains énoncés prospectifs qui peuvent
être influencé par des facteurs indépendants de la volonté de la société, y compris, mais sans s’y limiter, l’approvisionnement en gaz naturel, les mesures réglementaires
et la demande des clients. En conséquence, les conditions et les résultats réels peuvent différer des attentes actuelles. Voir «Avertissement»
Quant aux déclarations qui se tournent vers l’avenir »ci-dessous.

Contenu

Pour l’exercice terminé le 30 septembre 2020

EXPLICATION

Corning Holding Corporation for Natural Gas (
Holding Company) est le successeur de Corning Natural Gas Corporation
Société ») du 12 novembre 2013 à la suite de l’échange d’actions de l’action, créant la structure de la société holding. Comme
Le 12 novembre 2013, la société gazière est devenue une filiale en propriété exclusive de la société holding.

Tel qu’il est utilisé dans ce formulaire 10-K, le terme «société»,
«Nous» ou «nous» désigne les sociétés consolidées, les termes «société gazière» et «Corning»
«Gaz» désigne Corning Natural Gas Corporation, le terme «Pike» désigne la Light and Energy Company du comté de Pike et
Le terme «société de stockage» désigne une combinaison de Leatherstocking Gas Company, LLC et de Leatherstocking Pipeline
Company, LLC, à moins que le contexte n’indique clairement le contraire. Sauf indication contraire, les données contenues dans ce formulaire
10-K est du 30 septembre 2020.

PARTIE I

PARAGRAPHE 1 – ENTREPRISE

Général

La société holding a été créée à New
York en juillet 2013 a servi de société de portefeuille pour la société gazière et sa filiale inactive Corning Natural Gas Appliance Corporation.
(«Appliance Company»), Pike County Light and Energy Company, «Leatherstocking Gas Company,
LLC («Leather Gas for Socks») et Leatherstocking, LLC (Leatherstocking Pipe). le
La société holding détient également 50% de Leatherstocking Gas New York, Inc. Leatherstocking NY. Tel qu’utilisé dans ce document,
le terme «Société» fait référence aux activités consolidées de Holding Company, Gas Company, Pike et (en juillet
1. 2020.) de Leatherstocking.

Les bureaux de la direction générale de l’entreprise
sont situés au 330 W. William Street, Corning New York, 14830, le numéro de téléphone est le (607) 936-3755, et notre site Web est
www.corninggas.com.

Travail

L’activité principale de l’entreprise, à travers
ses filiales Corning Gas, Pike et Leatherstocking Companies, distribuent du gaz naturel et de l’électricité. Corning Gas sert
environ 15000 clients résidentiels, commerciaux, industriels et de services publics à Corning, Hammondsport et Virgil, New York,
zones et deux autres services publics desservant les zones Elmir et Bath de New York. Un service de franchise est proposé à tous
subdivisions politiques dans lesquelles il opère. La société gazière est sous la juridiction de la New York Public Services Commission
(« NYPSC ») qui surveille et fixe les tarifs des sociétés de distribution de gaz de New York. De plus, la société gazière a des contrats
avec Corning Incorporated et Woodhull Municipal Gas Company, un petit service public local qui fournit des services d’entretien pour leur gaz
lignes. Pike est une société d’électricité et de gaz réglementée par la Pennsylvania Utilities Commission («PAPUC»). Brochet
fournit des services d’électricité à environ 4800 clients dans les villes de Westfall, Milford et le nord de Dingman
et dans les municipalités de Milford et Matamoras. Pike fournit un service de gaz naturel à 1200 clients dans la ville de Westfall et
Municipalité de Matamoras. Toutes ces communautés sont situées dans le comté de Pike, en Pennsylvanie. Parallèlement à cela, il y a le gaz de stockage de cuir
réglementé par le PAPUC et distribue du gaz dans les comtés de Susquehanna et Bradford, en Pennsylvanie. Passepoil en cuir, en désordre
société, a servi un client à Lawton, en Pennsylvanie et n’a réalisé aucun chiffre d’affaires depuis 2018. Leatherstocking NY a une application
attend la juridiction pour fournir des services de distribution de gaz dans le comté de Broome, New York, avant le NYPSC.

Fourniture de gaz et d’électricité

Corning Gas a conclu des contrats avec diverses sources
pour fournir du gaz naturel à notre réseau de distribution. La société gazière contracte la capacité du gazoduc, ainsi que la capacité de stockage
d’environ 736 000 décathermes (« Dth »). L’entreprise gère ses capacités de transport et de stockage en interne
Ressources. Pike a un contrat avec Orange et Rockland Utilities, Inc. (« O&R ») pour fournir de l’électricité et des ressources naturelles
gaz selon accords jusqu’en août 2022, sous réserve de renouvellement. Leatherstocking Gas a un contrat d’approvisionnement avec Cabot Oil et
Gaz.

Corning Gas a fourni le montant fixe requis pour le NYPSC
prix et fourniture de gaz de stockage pour la saison d’hiver 2020-2021 et gère ses contrats de stockage et de fourniture de gaz après sa
plan d’approvisionnement et d’approvisionnement en gaz. En supposant qu’il n’y ait pas de conditions d’urgence pour la saison d’hiver, l’approvisionnement en gaz, le débit et le stockage
être adéquat pour servir ses quelque 15 000 clients.

Corning Gas ne s’attend pas à une pénurie de
gaz qui affectera nos activités au cours des cinq à dix prochaines années. L’offre de gaz naturel au cours des dernières années a été positive et
les réserves et la production intérieures ont augmenté. Cela est particulièrement vrai de la proximité de notre réseau de distribution. Nous aussi
ils ne prévoient pas le manque de tuyaux et de vannes nécessaires à la distribution sécuritaire du gaz naturel et continuent de recevoir du matériel
inventaire de diverses sources fiables. Nous pensons également que notre accord avec O&R permettra à Pike de remplir tous les nôtres
les besoins en électricité et en gaz des clients de Pike d’ici août 2022, sous réserve de renouvellement, et que Cabot Oil and Gas pourra
pour continuer à fournir de manière fiable du gaz pour cuir.

Saisonnalité

L’activité de l’entreprise est saisonnière en
la nature et les ventes pour chaque trimestre de l’année varient et ne sont pas comparables. Les ventes varient en fonction des variations saisonnières de température.
Les ventes de gaz atteignent un sommet en hiver, tandis que la propulsion électrique de Pike se vend en été.

Clients importants

La société gazière compte trois principaux clients,
Corning Incorporated, New York State Electric & Gas, and Bath Electric, Gas & Water Systems. Total de ces clients
représentaient environ 14,32% du chiffre d’affaires de la société gazière au cours de l’exercice clos le 30 septembre 2020 («FY 2020»)
et 15,18% au cours de l’exercice clos le 30 septembre 2019 («FY 2019»). La perte de l’un de ces clients aurait
impact négatif sur nos résultats financiers.

Employé

L’entreprise compte 72 employés depuis septembre
30. 2020 et 64 au 30 septembre 2019. Sur ce nombre total, environ un tiers sont des syndicats travaillant sous contrat avec un syndicat
en vigueur jusqu’au 5 avril 2021.

Compétition

Historiquement, la concurrence dans une société gazière
Le marché résidentiel de Pike, les franchises de gaz et Leatherstocking Gas proviennent principalement d’électricité
pour chauffer l’eau et sécher les vêtements, et dans une moindre mesure le mazout et le propane pour le chauffage. Le prix du gaz reste bas
par rapport aux carburants alternatifs dans les territoires où nous fournissons des services et une position concurrentielle dans les secteurs résidentiel et commercial
et les marchés industriels restent solides. Lorsque nous élargissons notre système de distribution pour attirer de nouveaux clients, notre principal concurrent est
est le pétrole et le propane. Le gaz naturel bénéficie aujourd’hui d’un avantage de prix par rapport à ces carburants. Pike électrique n’a pas fait face à une concurrence significative
sortir avec. Bien que ce ne soit pas un matériau aujourd’hui, nous pourrions faire face à la concurrence de l’énergie solaire appartenant aux clients à l’avenir.

Réglementations environementales

Nous croyons que nous nous en tenons au présent
réglementations environnementales fédérales, étatiques et locales. Nous ne nous attendons pas à ce qu’il continue d’adhérer
ces exigences auront une incidence défavorable importante sur nos dépenses en immobilisations, nos bénéfices et notre situation financière. Entreprise
n’a pas d’emplacement d’usine à gaz (MGP) antérieurement produit et n’est partie à aucune procédure, litige ou appel en matière d’environnement.

Les questions de réglementation

Inclus
Le 15 juin 2017, le NYPSC a émis une ordonnance approuvant les conditions de la proposition conjointe et établissant un plan tarifaire pour l’essence («June 2017.
Ordonnance »adoptant la proposition conjointe sans modifications substantielles. En février 2020, Corning Gas a lancé une nouvelle affaire
à NYPSC.
Pike fonctionne en vertu d’un ordre tarifaire émis le 1er septembre 2014, prolongé jusqu’au 1er mars 2018 et
continue jusqu’au prochain taux de cas selon les termes de notre acquisition (pour plus d’informations, voir ci-dessous sous la rubrique
«Questions réglementaires – brochet»). En octobre 2020, Pike a déposé des plaintes pour des opérations électriques et gazières.

Pour plus d’informations, voir «Discussion de la direction
et Analyse de la situation financière et des résultats commerciaux – questions de réglementation « .

PARAGRAPHE 1A. FACTEURS DE RISQUE

Nos opérations
les fluctuations des prix du gaz naturel et de l’électricité peuvent avoir un impact négatif.

Prix ​​du gaz naturel
et l’électricité est sujette à des fluctuations volatiles en réponse aux changements de l’offre et à d’autres conditions du marché. Bien que ces
les coûts sont généralement répercutés sur les clients de la société gazière en vertu de clauses d’ajustement du gaz naturel et sur les clients de Pike
et Leatherstocking Gas par le prix du tarif du gaz, et ne posent donc pas de risque direct pour les bénéfices, nous ne sommes pas en mesure de prévoir
quel effet une forte hausse des prix du gaz naturel et de l’électricité peut avoir sur la consommation d’énergie ou la capacité de nos clients
payer. Des prix plus élevés pour les clients peuvent entraîner des coûts plus élevés de créances douteuses et de fidélisation de la clientèle. Des prix plus élevés peuvent également
impact négatif sur nos flux de trésorerie car nous sommes généralement tenus de payer pour le gaz naturel et l’électricité avant de recevoir les paiements
pour le gaz naturel ou l’électricité de nos clients.

Les problèmes opérationnels
hors de notre contrôle pourrait avoir un effet défavorable sur nos activités.

Pike, Leatherstocking Gas and Gas Company
La capacité de fournir du gaz naturel et de l’électricité dépend à la fois de ses propres activités et installations et du travail de tiers, y compris
les producteurs locaux de gaz et les exploitants de pipelines et notre fournisseur d’électricité auprès duquel nous obtenons du gaz naturel et électrique
Stock. Perte d’utilisation ou destruction de nos installations ou installations de tiers en raison de conditions météorologiques extrêmes,
les échecs, la guerre, le terrorisme ou d’autres phénomènes pourraient réduire considérablement les revenus et les flux de trésorerie potentiels et augmenter notre
les frais de réparation et de remplacement des biens. Bien que nous ayons une assurance habitation pour protéger nos biens ainsi que des politiques réglementaires
NYPSC et PAPUC offrent la possibilité de reporter et de récupérer des coûts supplémentaires extraordinaires associés aux pertes
pour de tels incidents, nos pertes peuvent ne pas être entièrement remboursées par l’assurance ou les tarifs clients. De plus, l’effet
une pandémie de coronavirus pourrait affecter négativement notre capacité à entretenir les réseaux de distribution de gaz et d’électricité et à fournir des services à nos clients
base.

Réglementations environementales
peuvent affecter de manière significative les activités de la société.

Affaires de l’entreprise
les opérations sont soumises aux lois et réglementations environnementales fédérales, étatiques et locales. Coûts de conformité
et les responsabilités pourraient avoir une incidence défavorable sur les résultats de la société. De plus, le respect des lois et réglementations environnementales
ou les conditions du permis peuvent exiger des dépenses en capital imprévues dans les installations de la société. Parce que le coût d’un tel
la conformité peut être importante, des réglementations supplémentaires peuvent nuire aux activités de la société. Changement climatique et
les développements réglementaires et législatifs liés au changement climatique peuvent avoir une incidence négative sur les résultats commerciaux et financiers. Si
étaient censés être les impacts du changement climatique sur les activités et les résultats financiers de la société, la société l’attend
ils sont susceptibles de se produire sur une période plus longue et sont donc difficiles à quantifier avec un quelconque degré de spécificité. Conditions météorologiques extrêmes
les événements peuvent entraîner des effets physiques négatifs sur certaines parties de l’infrastructure de gaz et d’électricité de la société, ce qui pourrait
la chaîne d’approvisionnement de l’entreprise et finalement son activité. Interruption des systèmes de transport et de distribution
peut entraîner une réduction de l’efficacité opérationnelle et une interruption du service client. Changement climatique et lois, réglementations et
d’autres initiatives relatives aux changements climatiques peuvent avoir une incidence sur les résultats financiers de la société. Législation fédérale, étatique et locale
et les initiatives réglementaires proposées ou adoptées ces dernières années pour tenter de limiter les effets du changement climatique, notamment
émissions de gaz à effet de serre, pourraient avoir un impact significatif sur l’industrie de l’énergie, y compris les restrictions et les interdictions imposées par le gouvernement
ou des moratoires sur l’utilisation du gaz. Un certain nombre de pays ont adopté des stratégies ou des plans énergétiques avec des objectifs qui incluent la réduction
les émissions de gaz à effet de serre. New York a adopté la Community Protection and Protection Act («CLCPA»), qui a été créée
mandats visant à réduire les émissions et à produire de l’électricité, et pourraient à terme affecter la clientèle de l’entreprise. Législation
ou un règlement visant à réduire les émissions de gaz à effet de serre pourrait également inclure des limites d’émission de gaz à effet de serre et des exigences de déclaration,
taxes sur le carbone, permis restrictifs, normes d’efficacité accrues et incitations ou mandats pour économiser l’énergie ou utiliser des énergies renouvelables
sources d’énergie. En outre, la tendance à une conservation accrue, la concurrence des sources d’énergie renouvelables et de la technologie
Les progrès dans la lutte contre le changement climatique peuvent réduire la demande de gaz naturel et d’électricité. Pour plus d’informations sur les risques associés
avec les réglementations environnementales pour lutter contre le changement climatique, instruction La gestion
Discussion et analyse
sous le titre «Questions environnementales».

Beaucoup plus chaud
que les conditions météorologiques normales peuvent affecter les ventes de gaz naturel et des conditions météorologiques nettement plus froides que la normale peuvent affecter notre
les ventes d’électricité. Les deux pourraient nuire à notre situation financière et aux résultats de nos activités.

Demande de naturel
les conditions météorologiques affectent directement le gaz et l’électricité. En hiver, il fait beaucoup plus chaud que les conditions météorologiques normales
dans nos domaines de service, nous pourrions réduire nos bénéfices et nos flux de trésorerie en raison d’une baisse des ventes de gaz. Le résultat serait un temps d’été plus froid
en baisse des ventes d’électricité pour la climatisation. Corning Gas atténue le risque de températures hivernales plus chaudes en normalisant les conditions météorologiques
et des clauses de partage des revenus dans nos tarifs. Ces clauses permettent à la société gazière de payer un supplément pour les clients en raison d’un recouvrement insuffisant
le revenu. Les peaux de brochet et de peau n’ont pas de normalisation du temps ou de partage des revenus pour réduire le risque de temps plus chaud
en hiver ou par temps plus froid en été.

Informatique

Cyber-attaques ou actes
le cyber-terrorisme pourrait perturber nos activités et nos systèmes informatiques ou entraîner une perte ou une exposition
des informations confidentielles ou sensibles sur un client, un employé ou une entreprise. Au cours de l’exercice 2020, l’entreprise a subi des cyberattaques
destiné à collecter des rançons. Les attaques ont été résolues sans payer de rançon et n’ont pas entraîné de perte de données ou
résiliation du service client. Depuis l’attaque, la Société a pris des mesures pour renforcer ses défenses contre de futures attaques.

Il y a des
les risques liés au stockage et au transport de gaz naturel et de distribution d’électricité, qui pourraient entraîner des risques importants
pertes financières.

Il existe des dangers inhérents et des risques opérationnels
dans les activités de transport et de distribution de gaz, telles que les fuites, les explosions accidentelles et les problèmes mécaniques qui pourraient causer
pertes financières importantes. Il existe également des risques associés à la distribution d’électricité. Ces risques pourraient, s’ils le voulaient
se produire, entraîner la perte de vies humaines, des dommages matériels importants, une pollution de l’environnement, des dommages aux entreprises et
pertes importantes. Localisation des pipelines, stockage et distribution d’électricité à proximité des zones peuplées, y compris résidentielles
les zones, les centres d’affaires commerciaux et les sites industriels, pourraient augmenter le niveau de dommages résultant de ces risques. Celles-ci
activités peuvent faire l’objet de litiges et de procédures administratives pouvant entraîner des amendes importantes, des amendes
ou des sanctions. Dans la mesure où la survenance de l’un de ces événements n’est pas entièrement couverte par l’assurance, ils pourraient avoir des conséquences négatives
affectent notre situation financière et nos résultats commerciaux.

Changements au niveau régional
les conditions économiques pourraient réduire la demande de gaz naturel et d’électricité.

Les activités de la société gazière sont surveillées
cycle économique des clients dans nos régions de service: Corning, Bath, Virgil et Hammondsport, New York. Tomber, lent ou lent
une économie qui réduirait la demande de gaz naturel dans les zones où nous opérons en imposant des arrêts temporaires,
la fermeture des opérations ou le ralentissement de la croissance économique réduirait notre potentiel de gains. Il est moins courant pour le brochet et le cuir.
être frappés par une économie atone car ils n’ont actuellement pas de gros clients industriels.

Plusieurs de nos clients gaziers commerciaux et industriels
ils utilisent le gaz naturel dans la production de leurs produits. En période de ralentissement économique, ces clients peuvent remarquer une baisse de la demande
pour leurs produits, ce qui peut conduire à une réduction de la quantité de gaz naturel nécessaire à la production. Au cours de toute
les ralentissements conduisent généralement à une augmentation des faillites de particuliers et d’entreprises. Pike et Leatherstocking Gas ont
clients industriels limités et sont donc moins soumis aux conditions économiques sur les territoires de leurs services. Augmenter
en cas de faillite d’un client, nous augmenterions le coût de nos créances irrécouvrables et réduirions nos flux de trésorerie.

Nos revenus dans ce cas peuvent être réduits
actions réglementaires négatives.

La plupart de nos opérations sont soumises à la juridiction
NYPSC ou PAPUC. NYPSC et PAPUC approuvent les tarifs que nous pouvons facturer à nos clients. Si un tarif nous est demandé
le processus de réduction des tarifs que nous facturons à nos clients ou si nous ne pouvons pas obtenir l’approbation de l’allègement, en particulier lorsque
nécessaires pour couvrir les coûts accrus, y compris les coûts qui peuvent être encourus dans le cadre des améliorations obligatoires des infrastructures,
nos revenus diminueraient.

Notre succès dépend en grande partie de nous
le maintien des services d’un certain nombre d’employés importants, dont la perte pourrait nuire à notre activité, à notre situation financière
et les résultats du travail.

Notre succès dépend en grande partie de
services continus de nos cadres supérieurs et d’autres employés clés. Bien que nous ayons conclu un contrat avec
Michael I. German, notre président et chef de la direction, peut résilier son accord quatre-vingt-dix jours à l’avance. Autre
les employés importants peuvent mettre fin à leur emploi à tout moment. La perte des services de tout employé important pourrait avoir
effet défavorable important sur nos activités.

Concentration de l’actionnariat
nos plus grands actionnaires peuvent empêcher d’autres actionnaires d’influencer les décisions importantes de l’entreprise.

Les quatre plus grands détenteurs de nos actions ordinaires
vous détenez environ 52% des actions ordinaires en circulation. En conséquence, si quelqu’un choisissait d’agir ensemble, il aurait la possibilité
exercer une influence notable sur toutes les questions nécessitant l’approbation de nos actionnaires, y compris l’élection et la révocation des administrateurs
et toute proposition de fusion, consolidation ou vente de la totalité ou de la quasi-totalité de nos actifs et autres transactions d’entreprise. Ce
la concentration de la propriété pourrait se faire au détriment d’autres actionnaires ayant des intérêts différents de ceux de ces actionnaires.

Nos flux de trésorerie commerciaux peuvent ne pas
être suffisant pour financer nos dépenses d’investissement.

Nos flux de trésorerie liés à l’exploitation sont en grande partie
dépend du revenu admissible soumis à l’approbation du NYPSC et du PAPUC, et peut ne pas être suffisant pour couvrir toute notre trésorerie
Besoins. Avant chaque commission, la Commission a des affaires non résolues à des taux dont l’issue est incertaine. Nous estimons
les dépenses en immobilisations de l’exercice 2021 pour Gas Company, Pike et Leather Gas sont de 5,5 millions de dollars, 3,2 millions de dollars et 1,1 million de dollars
millions, respectivement. Si les flux de trésorerie de l’entreprise ne suffisent pas pour financer ces investissements, nous devrons nous y fier
sur une nouvelle dette ou un financement en capital qui sera difficile à obtenir.

Nous aurons besoin de financement supplémentaire
ce qui peut être difficile ou coûteux à obtenir.

Pour financer nos investissements,
nous devrons obtenir un financement supplémentaire par emprunt et / ou par actions. L’endettement entraînerait une augmentation des obligations au titre du service de la dette
et pourrait donner lieu à des contrats opérationnels et financiers qui limiteraient nos activités. Financement supplémentaire pour le gaz
La société a besoin de l’approbation du NYPSC, et le gaz pour brochet et cuir nécessite l’approbation du PAPUC. Un financement supplémentaire peut être inacceptable
conditions ou peuvent ne pas être disponibles pour diverses raisons, notamment:

* Les restrictions que nous imposent nos prêteurs actuels dans nos accords de prêt,
* Nos futurs résultats commerciaux, notre situation financière et nos flux de trésorerie,
* Notre incapacité à réaliser notre business plan,
* Perception des prêteurs ou des investisseurs et demande de titres d’utilité publique, i
* Conditions du marché des capitaux dans lesquelles nous pouvons rechercher des fonds.

Si nous ne pouvons pas lever des capitaux supplémentaires à un niveau acceptable
dans ces conditions, nous pourrions ne pas être en mesure de financer l’expansion et la mise à niveau obligatoire de notre système de distribution, profiter de l’avenir
des occasions de répondre aux pressions concurrentielles ou de répondre à des besoins de capital imprévus.

Entreprises
la rentabilité peut être affectée négativement par une concurrence accrue.

Corning Gas est géographique
une zone avec un certain nombre de pipelines interétatiques et des sources de production locales. Si le client principal décide de se connecter directement avec
pipeline interétatique ou fabricant local, nos bénéfices et nos revenus seraient réduits. À Pike, les acheteurs d’électricité pourraient construire
installations solaires dans leurs maisons ou leurs entreprises en réduisant la demande d’électricité.

Entreprises
fait face à des risques liés aux épidémies sanitaires et à d’autres épidémies, y compris la pandémie COVID-19.

Pandémie de covid-19
elle a affecté et continue d’affecter les pays, les communautés, les chaînes d’approvisionnement et les marchés. À la suite de la pandémie COVID-19,
nous pourrions être confrontés à un ralentissement économique prolongé sur les territoires de nos services qui pourrait avoir un impact significatif sur notre liquidité financière
état et résultats des opérations.

Nous continuerons à surveiller
les développements liés à la pandémie COVID-19; cependant, nous ne pouvons pas prédire dans quelle mesure le COVID-19 peut avoir un impact significatif
sur nos activités, nos liquidités, notre situation financière et nos résultats commerciaux. Dans quelle mesure le COVID-19 peut-il être affecté
ces questions dépendront des développements futurs qui sont extrêmement incertains et imprévisibles, y compris de nouvelles informations à cet égard.
la gravité du COVID-19, la disponibilité d’un vaccin efficace, les actions des autorités fédérales, étatiques et locales ou des réglementations
les agences peuvent réagir au COVID-19 et à d’autres mesures prises pour, entre autres, supprimer ou traiter son impact.

PARAGRAPHE 2 – CARACTÉRISTIQUES

Corning Gas et sociétés de portefeuille
Le siège social est situé au 330 West William Street, Corning, New York. Cette structure est physiquement associée aux opérations
centre. Le siège social et le centre des opérations de Pike sont situés à Westfall, en Pennsylvanie. Siège social de Leatherstocking
et le centre des opérations est à Montrose, en Pennsylvanie.

Le système de tuyauterie de la société gazière est
ils sont sondés chaque année au besoin pour se conformer aux réglementations fédérales et étatiques. Toutes les anomalies constatées sont corrigées en fonction de la commande.
Environ 425 miles de bus de distribution, 15000 services et 86 stations de contrôle, ainsi que diverses autres fonctionnalités,
appartiennent à la société gazière. Pike possède environ 160 miles de câblage électrique, poteaux et services et 19 miles
pipeline de distribution. Les sociétés Leatherstocking possèdent quatre portes et environ 16 miles de tuyaux à Susquehanna
et Bradford County, Pennsylvanie. Tous les actifs appartenant à la Société sont correctement garantis et soumis à divers privilèges
typique de la dette des entreprises.

PARAGRAPHE 3 – PROCÉDURE JURIDIQUE

La société a des poursuites judiciaires de ce type en cours
encourus dans le cours normal des affaires et la Société estime que toutes les pertes potentielles devraient être couvertes par une assurance et
n’aura pas d’impact significatif sur l’entreprise.

POINT 4 – DÉCLARATION DE SÉCURITÉ MINIÈRE

N’est pas applicable.

DEUXIEME PARTIE

POINT 5 – MARCHÉ POUR
CAPITAL COMMUN DES REGISTRANTS, ACTIONNAIRES ASSOCIÉS ET ACHATS DE TITRES ÉDITIONNELS

Le principal marché sur lequel la Holding est
l’action ordinaire est négociée sur le meilleur marché OTCQX, sous le symbole CNIG. La négociation des actions ordinaires est limitée et sporadique.
Le tableau suivant montre les prix de vente de clôture hauts et bas tels que déclarés à OTCQX pour la Joint Holding Company
stocks pour chaque trimestre au cours des deux derniers exercices de la Holding. Parce que les actions de la société holding sont échangées
sur OTCQX, ces cotations reflètent les prix des concessionnaires, sans marges de détail, réductions ou commissions et peuvent ne pas représenter
transactions réelles. Le nombre d’actionnaires ayant des registres d’actions ordinaires de la Holding était de 623 au 30 septembre
2020

PRIX DU MARCHÉ – (OTCQX)
Trimestre terminé Haute Faible
31 décembre 2018 19,42 17,62
31 mars 2019 23,50 17,86
30 juin 2019 23.00 19.00
30 septembre 2019 22.00 18.10
31 décembre 2019 22,50 18.05
31 mars 2020 21,50 13,06
30 juin 2020 17,69 14.00
30 septembre 2020 17,69 15,25

ACTIONS COMMUNES, ACTIONS NATURELLES ET DIVIDENDES

Pour l’exercice 2020, il y avait un total de 25487 actions
actions ordinaires émises pour 177 675 $ en services et 201 940 $ dans le cadre du RRD (programme de réinvestissement des dividendes). Là
12600 actions ont été émises à des administrateurs, 600 actions vendues à Leatherstocking Gas, qui a utilisé les actions pour compenser l’indépendance
administrateur Carl Hayden et 12 287 actions émises à divers investisseurs dans le cadre du RRD.

Pour l’exercice 2019, il y avait un total de 25209 actions
actions ordinaires émises pour 239 481 $ de services et 186 446 $ dans le cadre du RRD. 14600 actions ont été émises aux dirigeants
et administrateurs, 600 actions vendues à Leatherstocking Gas, qui a utilisé les actions pour rémunérer Carl Hayden, et 10 009 actions émises
divers investisseurs au sein du DRIP.

Les dividendes sur les actions ordinaires sont calculés
lorsqu’elles sont annoncées par le conseil d’administration. Dividenda na obične akcije izjavljivana je i isplaćivana kvartalno tokom godina koje su završavale u septembru
30., 2020. i 2019. godine. Za FG 2020. proglašene dividende iznosile su 0,603 USD po običnoj dionici. Za kvartal završen 30. septembra 2020. godine, 468.235 USD
je obračunata za dividende isplaćene 15. oktobra 2020. godine akcionarima sa evidencijom 30. septembra 2020. Za fiskalnu 2019. godinu proglašene dividende
iznosio je 0,575 USD po običnoj dionici. Za kvartal završen 30. septembra 2019. godine, akvidirano je 441.494 USD za dividende isplaćene 15. oktobra,
2019. za vlasnike zapisa 30. septembra 2019.

Prikupljaju se kumulativne poželjne zalihe
kumulativne dividende po stopi od 6,0% preferencijala za likvidaciju po akciji (25,00 USD) i očekuje se da će biti isplaćene približno ili približno
14. aprila, jula, oktobra i januara svake godine. Za kvartal završen 30. septembra 2020. godine, akumulirano je 97.725 USD
dividende isplaćene 15. oktobra 2020. Dividende na preferencijalne dionice serije A iskazuju se kao trošak kamata.

Series B Convertible Preferred Stock accrues
cumulative dividends at a rate of 4.8% of the liquidation preference per share ($20.75) and are expected to be paid on or about
the 14th day of April, July, October and January of each year. For the quarter ended September 30, 2020, $61,066 was accrued for
dividends paid on October 15, 2020.

Series C Cumulative Preferred Stock accrues
cumulative dividends at a rate of 6.0% of the liquidation preference per share ($25.00) and are expected to be paid on or about
the 14th day of April, July, October and January of each year and began July 15, 2020. For the quarter ended September 30, 2020,
$67,500 was accrued for dividends paid on October 15, 2020. Dividends on the Series C Preferred Stock are reported as interest
expense.

ITEM 7 – MANAGEMENT’S DISCUSSION AND ANALYSIS
OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Overview

New York and Pennsylvania government authorities,
in response to the COVID-19 pandemic, imposed restrictions on social activities, closed schools and placed operating restrictions
on commercial operations in our franchise areas beginning in March of 2020. Many businesses remain closed or have limited services
or product offerings. As a result, numerous residential customers are unemployed. The timing of a return to pre-pandemic conditions
remains uncertain. The Company has already experienced loss of gas and electric load and believes that it will experience lower
revenues primarily from commercial customers on a go forward basis. In addition, with higher levels of unemployment, cash receipts
will likely decrease and arrears and uncollectible accounts increase. The Company has enacted plans to ensure safe and reliable
operation of the gas and electric system, a safe work environment for its employees and to maintain a high level of customer service.
We have taken steps to delay capital expenditures and operating expenses and have petitioned the NYPSC for waivers from some mandated
regulatory goals as appropriate.

On July 1, 2020, the Company completed the
acquisition of its partner’s 50% interests in Leatherstocking Gas Company, LLC, and Leatherstocking Pipeline Company, LLC.
Immediately before the acquisition, on July 1, 2020, Leatherstocking Gas Company distributed to its members franchises, engineering
and gas pipeline assets located in New York having a book value of $0.532 million. These assets were then contributed to the equity
of Leatherstocking Gas Company of New York The Company owns 50% of the common shares of the newly formed Leatherstocking Gas Company
of New York, Inc. and will account for this investment using the equity method of accounting. The acquisition of the Company’s
partner’s 50% interest in The Leatherstocking Companies fits the Company’s goal of expanding its service offerings
in northeast Pennsylvania. Total consideration paid for the acquisition of the interests in the Leatherstocking Companies was $3.2
million, consisting of cash of $1.95 million and 50,000 shares of the Company’s 6% Series A Cumulative Preferred Stock valued
at $1.25 million. The consolidation of the Leatherstocking Companies’ results from July 1, 2020 through September 30, 2020
did not have a significant impact on total revenues and expenses.

We believe our key performance indicators are
net income, stockholders’ equity and the safety and reliability of our systems. Net income increased by $77,126 for FY 2020
compared to FY 2019. Because the Holding Company’s principal operations are conducted through Corning Gas and Pike, both
regulated utility companies, stockholders’ equity is an important performance indicator. The NYPSC and PAPUC allow the Company
the opportunity to earn a just and reasonable return on stockholders’ equity as determined under applicable regulations.
Stockholders’ equity is, therefore, a precursor of future earnings potential. As of September 30, 2020, compared to September
30, 2019, stockholders’ equity increased from $34,417,705 to $35,933,515 We plan to continue our focus on building stockholders’
equity. Safety and efficiency indicators include leak repair, main and service replacements and customer service metrics.

For FY 2020 the rate increase at the Gas Company,
alternative minimum tax credit refunds and higher investment income, net of operating cost increases, drove higher earnings. We
continue to focus on improving the efficiency of our operations and making capital investments to improve our infrastructure. Corning
Gas’s infrastructure improvement program concentrates on the replacement of older distribution mains and customer service
lines. In FY 2020 the Gas Company repaired 184 leaks, replaced 8.6 miles of bare steel main and replaced 229 bare steel services.
In FY 2019 the Gas Company repaired 187 leaks, replaced 9.5 miles of bare steel main and replaced 282 bare steel services. Pike
replaced approximately 150 utility poles in FY 2020, 116 utility poles in FY 2019, and did extensive tree trimming to maintain
our electric infrastructure. On January 18, 2019 Pike filed a Long Term Infrastructure Improvement Plan (“LTIIP”) to
accelerate replacement of cast iron, wrought iron and bare steel pipe over 11 years. The PAPUC approved the LTIIP plan on June
13, 2019.

Key financial performance indicators:

Year Ended September 30,
2020 2019
Net income $ 3,201,358 $ 3,124,232
Stockholders’ equity $ 35,933,515 $ 34,417,705
Stockholders’ equity per outstanding share $ 11.70 $ 11.30

Gas Revenue and Margin

Gas retail operating revenues decreased $1,774,768,
during FY 2020 compared to FY 2019. Sales volumes decreased by 271,749.5 Mcf in FY 2020 compared to FY 2019. This sales decrease
had a negative revenue impact of $316,298. Gas costs declined $1.22 per Mcf year over year. The lower gas costs decreased revenues
by $2,448,173. However, this decrease was offset by a Corning Gas rate increase net of the pass back to customers for the federal
income tax benefit related to the 2017 Tax Act amounting to $989,703. Purchased gas costs are subject to a NYPSC approved reconciliation
that permits recovery of all prudently incurred costs. Therefore, the lower gas cost revenues does not impact net income.

Other gas revenues decreased $140,209 during
FY 2020 compared to FY 2019. The components of this decrease are detailed in the tables below:

Retail gas revenue: September 30, 2020 September 30, 2019
Residential $ 15,814,929 $ 16,728,152
Commercial 2,420,930 2,807,725
Transportation 4,407,991 4,378,121
Wholesale 1,731,433 2,236,053
Total retail gas revenue 24,375,283 26,150,051
Other gas revenue:
Local production 694,237 698,203
Customer discounts forfeited 40,288 117,051
Reconnect fees 1,374 4,098
Surcharges 3,480 1,521
All other 270,556 329,271
Total other gas revenue 1,009,935 1,150,144
Total gas operating revenue $ 25,385,218 $ 27,300,195

The following
tables further summarize all other income in the other gas revenue table above:

September 30, 2020 September 30, 2019
Other gas & electric revenues:
2017 Tax Act FIT reconciliation $ 492,641 $ 588,120
RDM amortizations net (278,600 ) (251,653 )
Contract customer reconciliation (80,928 ) (148,718 )
Regulatory liability reserve (74,147 )
Local production revenues 61,305 59,066
Capacity release revenues 41,187 33,733
Customer performance incentive 32,000 32,000
Delivery rate adjustment carrying costs 6,038 7,351
All Other (3,087 ) 83,519
$ 270,556 $ 329,271

Gas purchases are our largest expenses. Purchased
gas expense decreased $2,241,491 for FY 2020 compared to FY 2019. The decrease in costs is due primarily to a decrease in the price
of natural gas.

We anticipate that the cost of gas should remain
relatively stable because of our access to local production and current economic and government projections. The cost of electricity
should also remain relatively stable because electricity prices generally follow the prices of natural gas.

Gas Margin (the excess of utility gas revenues
over the cost of natural gas purchased) was up $326,514 or approximately 1.67%. Whereas gas revenues were down 7.01%, which resulted
in an increase in margin percentage of 6.69% for FY 2020 compared to FY 2019. The gas margin percentages were negatively impacted
by the federal income tax credit of $1,405,983 mandated by the NYPSC offset by lower purchased gas costs, and by Corning Gas’
rate increase. The Leatherstocking acquisition had minimal impact on gas margin in FY 2020. Although, the federal income tax credit
refund to customers mandated by the NYPSC negatively impacted margin, its impact on earnings was mitigated by the decrease in the
federal income tax rate.

Gas Margin: September 30, 2020 September 30, 2019
Utility Gas Revenues $ 25,385,218 $ 27,300,195
Natural Gas Purchased 5,501,237 7,742,728
Gas Margin $ 19,883,981 $ 19,557,467
Gas Margin Percentage 78.33% 71.64%

Electric Revenue and Margin

Utility electric retail operating revenues
decreased $1,256,333 during FY 2020 compared to FY 2019. This decrease was mainly attributable to decreased purchased power costs
of $1,339,633 offset by increased customer usage of $83,300. The purchased electricity costs declined by $0.0256 per Kilowatt hour
when compared to FY 2019. Purchased electricity costs are subject a PAPUC approved reconciliation that permits recovery of all
prudently incurred costs. Accordingly, lower purchased electricity costs does not impact net income.

Other electric revenues increased $17,216 during
FY 2020 compared to FY 2019. The components of this increase are detailed in the tables below:

Retail electric revenue: September 30, 2020 September 30, 2019
Residential 3,449,851 3,882,291
Commercial 3,288,582 4,108,681
Street lights 123,055 126,849
Total retail electric revenue 6,861,488 8,117,821
Other electric revenue:
Customer discounts forfeited 2,658 62,078
FIT sur-credit reconciliation (38,707 )
Third party billings 176,645 111,706
All other (40,124 ) (13,114 )
Total other electric revenues 139,179 121,963
Total electric operating revenues $ 7,000,667 $ 8,239,784

Electricity costs decreased by $1,197,593 for
FY 2020 compared to FY 2019. The decrease in costs for FY 2020 is due primarily to a decrease in the price of purchased electricity.

Electric Margin (the excess of electric revenues
over the cost) was down $41,524 for FY 2020 compared to FY 2019. Electric margin percentage increased 11.08% for FY 2020 compared
to FY 2019. The electric margin was negatively impacted by the federal income tax credit of $1,353 mandated by the PAPUC, lower
purchased power costs and lower sales. Although, the federal income tax credit refund to customers mandated by the PAPUC negatively
impacted margin, its impact on earnings was mitigated by the decrease in the federal income tax rate.

September 30, 2020 September 30, 2019
Utility Electric Revenues $ 7,000,667 $ 8,239,784
Electricity Purchased 1,609,314 2,806,907
Margin $ 5,391,353 $ 5,432,877
77.01% 65.93%

Operating and Interest Expenses

Operating and maintenance expense for FY 2020
increased by $308,533 compared to FY 2019. The increase in expenses was due primarily to increases in wages of $144,303, additional
underground maintenance costs of $91,754 and COVID-19 impact of $96,441.

Taxes other than income taxes increased $26,659
for FY 2020 compared to FY 2019. This increase was due to an increase in property taxes of $175,581 offset by a decrease in Gross
Receipts Tax (“GRT”) of $127,307 and an increase in payroll taxes capitalized of $21,615.

Depreciation expense for FY 2020 compared to
FY 2019 increased by $121,827 due to increased depreciable utility plant placed in service.

Interest expense for FY 2020 compared to FY
2019 increased by $241,422 mainly due to additional interest costs associated with higher levels of outstanding debt attributed
to capital expenditures and to the Leatherstocking acquisition.

Effective Tax Rate

There was an effective income tax rate of 23.1%
for FY 2020 and 29.7% for FY 2019. The decrease in the effective tax rate was impacted by an AMT credit refund received in FY 2020,
see Note 11 “Income Taxes” in the notes to the consolidated financial statements.

Liquidity and Capital Resources

Internally generated cash from operating activities
consists of net income, adjusted for non-cash expenses and changes in operating assets and liabilities. Non-cash items include
depreciation and amortization, gain or loss on sale of securities and deferred income taxes. Over or under recovered gas costs
could significantly impact cash flow. In addition, there are significant year-to-year changes in regulatory assets that impact
cash flow. Cash flows used in investing activities typically consist primarily of capital expenditures and investments in our joint
ventures. For FY 2020 the acquisition of our partner’s 50% interests in the Leatherstocking Companies added approximately
$1.9 million to cash used in investing activities. We estimate capital expenditures to upgrade our distribution system of approximately
$9.7 million in fiscal 2021. We expect to finance these planned capital expenditures with a combination of cash provided by
operations and issuance of additional long-term debt and equity.

The earnings sharing mechanism approved by
the NYPSC in the June 2017 Order provided for sharing between Corning Gas stockholders and customers of the earned return on equity
(ROE) above certain levels. Under the earnings sharing mechanism, Corning Gas is allowed to retain all earnings up to and including
a 9.5% ROE level, 50% of earnings above 9.5% up to and including 10%, 25% of earnings above 10% up to and including 10.5%, and
10.0% of earnings above 10.5%. We believe that these limits do not have a significant effect on our liquidity because even at those
limits we have sufficient cash collected from our earnings to support operations.

Cash flows from financing activities consist
of dividends paid, repayment of long-term debt, net proceeds from new debt, net proceeds from sales of preferred shares and changes
in the outstanding balances of our lines-of-credit.

On September 30, 2020, we had approximately
$50.6 million in long-term debt outstanding. We made principal payments on outstanding debt during FY 2020 consistent with the
requirements of our debt instruments and refinancing activities.

In November 2017, the Gas Company refinanced
the bulk of its long term debt by entering into a long-term debt agreement with M&T Bank for $29 million at a fixed interest
rate of 4.16% with a ten-year maturity. In May 2018, Pike refinanced its outstanding loan with M&T, issuing an $11.2 million
term note with a fixed interest rate of 4.92% and a ten-year maturity. Since then, the Company has relied on multiple-disbursement
notes from M&T to fund capital improvements on an annual basis.

During FY 2020, the Company issued 180,000
shares of newly authorized 6% Series C Cumulative Preferred Stock at $25.00 per share, for gross proceeds of $4,500,000. The proceeds
of this issuance ($1,950,000) were used to buy the previously unowned interests in the Leatherstocking Companies and to finance
capital improvement projects at Pike and Corning. On July 1, 2020, 50,000 shares of the Company’s 6% Series A Cumulative
Preferred Stock valued at $1.25 million were issued along with $1,950,000 in conjunction with the Company’s acquisition of
the previously unowned interests in the Leatherstocking Companies. If necessary to raise funds, the Company may issue additional
preferred shares of authorized preferred shares or newly created preferred stock.

Corning Gas, Pike and Leatherstocking Gas have
revolving lines of credit of $8.0 million, $2.0 million and $1.5 million, respectively. The Company primarily utilizes these lines
of credit to purchase gas and electricity. The Company believes these lines of credit are sufficient to fund our short term purchasing
needs.

The Gas Company is responsible for managing
its gas supply assets. At September 30, 2020, the Gas Company had 573,609 Dth at a cost of $995,341 in storage. We anticipate that
the Gas Company will have sufficient gas to supply our customers for the 2020-2021 winter heating season. The contract with O&R
should provide for sufficient electricity and natural gas to supply Pike for the 2020-2021 winter heating and summer cooling demand.
M&T has issued to O&R a letter of credit in the amount of $1.525 million as security for the obligations of Pike under
Pike’s electric and the gas supply and gas transportation agreement. The agreements provide for three years of electric and
gas supply for the customers of Pike, with up to three one-year extensions. Leatherstocking Gas purchases its gas from Cabot Oil
on an as needed basis and therefore has no gas in storage. We anticipate that Leatherstocking will have sufficient gas to supply
its customers for the 2020-2021 winter heating season.

As of September 30, 2020, we believe that cash
flow from operating activities and borrowings under our lines of credit will be sufficient to satisfy debt service requirements
over the next twelve months. We believe new debt and proceeds from equity will be required to satisfy our capital expenditures
to finance our internal growth needs for the next twelve months.

Off Balance Sheet Arrangements

We have no off balance sheet arrangements.

Contractual Obligations

The following tables summarize the Gas Company’s
expected future contractual cash obligations as of September 30, 2020, and the twelve-month periods over which they occur.

The aggregate maturities of long-term debt for each of the five years subsequent to September 30, 2020 are as follows:
2021 $ 6,271,068
2022 $ 6,178,252
2023 $ 5,687,656
2024 $ 6,007,762
2025 $ 6,210,093

The estimated interest payments on the above debts are as follows:

2021 $ 1,956,692
2022 $ 1,699,657
2023 $ 1,443,590
2024 $ 1,180,852
2025 $ 845,593

The estimated pension plan benefit payments are as follows:
2021 $ 1,513,952
2022 $ 1,508,365
2023 $ 1,518,476
2024 $ 1,552,685
2025 $ 1,614,898

The projected benefit
obligation of the benefit plan has been calculated based on the census and plan provisions, as well as a number of economic and
demographic assumptions. The discount rate for the period ending September 30, 2020 is 3.64% and is assumed to be the rate going
forward. A decrease in the discount rate of 1% could increase the projected benefit obligation by $4.2 million and an increase
in the discount rate of 1% could decrease the obligation by $3.4 million. Either change would impact the estimated pension plan
payment for future periods.

Regulatory Matters

Holding Company

The Holding Company’s primary business,
through its subsidiaries Corning Gas, Pike, and Leatherstocking Gas, is regulated by the NYPSC and PAPUC, among other agencies.

Gas Company

On April 13, 2016, the Gas Company filed a
petition in Case 16-G-0204 with the NYPSC, to defer leak repair and survey costs over and above the amounts permitted to be recovered
in rates for 2015. In this petition we requested that the incremental cost of $349,547 together with the associated income tax
effect, be deferred and recovered in a manner to be established in future rate proceedings. The Company recognized this deferral
in the quarter ended March 31, 2016. The petition is still pending before the NYSPSC.

On June 15, 2017, the NYPSC issued an Order
Adopting Terms of Joint Proposal and Establishing Gas Rate Plan (the “June 2017 Order”) adopting the Joint Proposal
without substantive modification in Case 16-G-0369.

The Joint Proposal (“JP”)
in Case 16-G-0369 included the levilization of the revenue requirement over a three year period. Levilization allowed a recovery
of the rate increase equally over three rate years. Rate year 3 delivery base rates if left unchanged would permit the Gas Company
to earn revenues in excess of the amount granted by the Commission. Accordingly, the JP provided that if the Gas Company did not
file for new rates to become effective at the end of Rate Year 3, it would reduce rates beginning on June 1, 2020 to eliminate
the amount of over recovery caused by levilization. The Gas Company made the tariff compliance filing to reduce rates on June 1,
2020. The Gas Company estimates that delivery rates will be reduced by approximately $481,000 net of tax until new rates become
effective.

On August 9, 2018, The
NYSPSC issued an order in Case 17-M-0815 that required Corning to return to customers the difference between the federal income
tax allowance in base rates and the new statutory rate of 21% under the Tax Cuts and Jobs Act of 2017(the “Tax Act”).
The refund to customers began on October 1, 2018. The customers experienced a decrease of 3.87% on their overall bill in the year
starting October 1, 2018 and experienced a decrease of 3.72% on their overall bill in the year starting October 1, 2019. The amount
estimated to be returned to customers was $980,964 during FY 2019 and was $1,004,563 during FY 2020. These refunds will not impact
the Gas Company’s allowed earnings. The impact of the change in the Tax Act on deferred regulatory balances will be deferred
until the Gas Company’s next base rate case. The Gas Company has recorded those amounts as Regulatory Liabilities on the
consolidated balance sheets.

On February 27, 2020,
Corning Gas filed with the NYPSC for increases in revenues of $6,255,926, $845,142, and $680,913 for the years ending January 31,
2022, 2023, and 2024, respectively (Case 20-G-0101). These standalone rate year increases would impact customer bills by 23.4%,
2.56%, and 2.01%, respectively. The base period (test year) for this filing is the 12 month period ended September 30, 2019. The
levelized amount would be $3,523,167 in each of the years ending January 31, 2022, 2023 and 2024. The levelized increases would
impact customer bills by 10.93% per year. We are requesting a levelized approach.

The filing with the NYPSC
reflects a return on equity of 10.2% and pro-forma equity ratios of 50.67%, 52.95% and 55.26% for the 12-month periods ending January
31, 2022, 2023, and 2024, respectively. Primary reasons for the rate increase are NYPSC mandated initiatives, including replacement
of distribution pipe, and new safety, training, and cyber security requirements; and shorter depreciation lives for gas pipeline
infrastructure to reflect recent state decarbonization legislation. These two items comprise approximately 50% of the rate case
increase request. The balance of the request is to recover increases in health insurance, wages and other inflationary costs.

On June 26, 2020, the
New York Department of Public Service Staff (“Staff”) filed its direct testimony in Case 20-G-0101. Staff recommends
a one year revenue requirement of $517,063, compared to the Gas Company’s request of $6,223,603. The primary differences
between Staff Gas and Company’s revenue requirements is Staff’s equity return recommendation of 8.45% vs. 10.20%, disallowance
of the Company’s request for shorter depreciation lives, difference in health insurance cost escalators, extension of the
recovery period of regulatory costs from three years to five years, and disallowance of leak repair amortization. The Gas Company
disagrees with Staff’s proposals. The Gas Company is currently in confidential settlement discussion with Staff and active
parties in Case 20-G-0101. The results of those discussions cannot be determined at this time. In November of 2020, the parties
requested that the Administrative Law Judges grant a four month extension of time until June 1, 2021 to rule on the filing, with
new rates being retroactively enacted as of January 31, 2020.

By petition dated September
3, 2020 in Case 20-G-0442, Corning Gas requested authority under Public Service Law Sec.69 to issue approximately $29.5 million
of long term debt through December 31, 2024. The proceeds are to be used principally to fund Commission mandated system safety
and reliability measures, including replacement of older pipe and regulator stations; and purchase equipment, computer software
and other supplies as necessary to maintain the distribution system. The petition is currently pending.

Pike

The PAPUC issued an order
in Case M-2018-2641242 that requires Pike to return to customers the difference between the federal income tax allowance in base
rates and the new statutory rate of 21%. Pike’s electric customers received a refund of $73,923 or decrease of 0.67% on their
overall bill effective October 1, 2018. No refunds were ordered for Pike’s gas operation because amounts were not material.
The impact of the change in the Tax Act on deferred regulatory balances will be deferred until Pike’s next base rate case.
Pike has recorded those amounts as Regulatory Liabilities on the consolidated balance sheets.

On October 24, 2020,
Pike filed separate rate cases with the PAPUC for an increase in revenues for its electric services in the amount of $1,933,600
(Case R-2020-302235) and for an increase in revenues for its gas services in the amount of $262,200 (Case R-2020-3022134). Pike’s
current rates have been in effect since 2014. The rate increase would impact residential customer bills by 17.3% for electric customers,
and by 19.7% for gas customers. The base period (test year) for this filing is the 12 month period ended June 30, 2020. The filings
with the PAPUC reflect returns on equity of 9.75% and pro forma equity ratios of 48.3% for each case. The primary reasons for the
requested rate increases are PAPUC mandated initiatives including the replacement of gas distribution equipment, replacement of
electric poles and wires, the recovery of deferred storm related costs, new safety, training, and cyber security requirement, and
increased employee health and welfare benefits costs. The PAPUC can grant all, some, or none of the requested revenue increases.
Pike expects its new rates to take effect on July 1, 2021.

Leatherstocking Gas

The PAPUC issued an order in Case M-2018-2641242
that requires Leatherstocking Gas to return to customers the difference between the federal income tax allowance in base rates
and the new statuary rate of 21%. No refunds were ordered for Leatherstocking Gas operation since the Company has experienced federal
income tax losses since 2012.

Environmental Matters

The Company is subject to various federal,
state and local laws and regulations relating to the protection of the environment. The effect (material or not) on the Company
of any new legislative or regulatory measures will depend on the particular provisions that are ultimately adopted. Environmental
regulation legislative and regulatory measures to address climate change and greenhouse gas emissions are in various phases of
discussion or implementation. Legislation or regulation that aims to reduce greenhouse gas emissions could also include greenhouse
gas emissions limits and reporting requirements, carbon taxes, restrictive permitting, increased efficiency standards, and incentives
or mandates to conserve energy or use renewable energy sources. Federal, state or local governments may provide tax advantages
and other subsidies to support alternative energy sources, mandate the use of specific fuels or technologies, or promote research
into new technologies to reduce the cost and increase the scalability of alternative energy sources. New York State, for example,
passed the CLCPA that mandates reduced greenhouse gas emissions to 60% of 1990 levels by 2030, and 15% of 1990 levels by 2050,
with the remaining emission reduction achieved by controlled offsets. The CLCPA also requires electric generators to meet 70% of
demand with renewable energy by 2030. These climate change and greenhouse gas initiatives could impact the Company’s customer base
and assets depending on regulatory treatment afforded in the process. The initiatives could also increase the Company’s cost
of environmental compliance by increasing reporting requirements and requiring the Company to replace all leak prone pipe. They
could also delay or otherwise negatively affect efforts to obtain permits and other regulatory approvals with regard to existing
and new facilities and impose additional monitoring and reporting requirements. Changing market conditions and new regulatory requirements,
as well as unanticipated or inconsistent application of existing laws and regulations by administrative agencies, make it difficult
to predict a long-term business impact across twenty or more years.

Critical Accounting Policies

Our significant accounting
policies are described in the notes to the accompanying Consolidated Financial Statements of this Form 10-K. The application of
generally accepted accounting principles involves certain assumptions, judgments and estimates that affect reported amounts of
assets, liabilities, revenues and expenses. Thus, the application of these principles can result in varying results from company
to company. The principles and policies that most significantly impact us are discussed below.

Accounting for Utility Revenue and Cost
of Gas Recognition

Corning Gas records revenues
from residential and commercial customers based on meters read on a cycle basis throughout each month, while certain large industrial
and utility customers’ meters are read at the end of each month. Corning Gas does not accrue revenue for gas delivered but
not yet billed, as the NYPSC requires that such accounting be adopted during a rate proceeding, which we have not done. Currently
Corning Gas does not anticipate adopting unbilled revenue recognition nor does it believe it would have a material impact on financial
results. Our tariffs contain mechanisms that provide for the recovery of the cost of gas applicable to firm customers, which includes
estimates. Under these mechanisms, we periodically adjust rates to reflect increases and decreases in the cost of gas and electricity.
Annually, we reconcile the difference between the total gas costs collected from customers and the cost of gas. We defer any excess
or deficiency and subsequently either recover it from, or refund it to, customers over the following twelve-month period or possibly
longer based on the amounts if the cost for gas significantly exceeds the total gas costs collected from customers. Quarterly,
we reconcile the difference between electric costs collected from customers and the cost of electricity. The default service charges
for electricity are adjusted every quarter. To the extent estimates are inaccurate, a regulatory asset on the balance sheet is
increased or decreased. Pike and Leatherstocking Gas read all meters at the end of the month and therefore have no unbilled revenue.
As gas and electricity are immediately available for use upon delivery to the customer, the gas or electricity and its delivery
are identifiable as a single performance obligation. The Company recognizes revenues as this performance obligation is satisfied
over time as the Company delivers, and its customers simultaneously receive and consume, the gas or electricity.

Accounting for Regulated Operations – Regulatory
Assets and Liabilities

Corning Gas is subject
to regulation by NYPSC, and Pike and Leatherstocking are subject to regulation by the PAPUC. We record the results of our regulated
activities in accordance with Financial Accounting Standards Board (FASB) ASC No. 980, which results in differences in the application
of generally accepted accounting principles between regulated and non-regulated businesses. ASC No. 980 requires the recording
of regulatory assets and liabilities for certain transactions that would have been treated as revenue and expense in non-regulated
businesses. In certain circumstances, FASB ASC No. 980 allows entities whose rates are determined by third-party regulators to
defer costs as « regulatory » assets in the balance sheet to the extent that the entity expects to recover these costs
in future rates. Management believes that currently available facts support the continued application of ASC No. 980 and that all
regulatory assets and liabilities are recoverable or refundable through the regulatory environment.

Accounting for Income Taxes

The Holding Company uses the asset and liability
method to establish deferred tax assets and liabilities for the temporary differences between the financial reporting basis and
the tax basis of the Holding Company’s assets and liabilities at enacted tax rates expected to be in effect when such amounts
are realized or settled. Such deferred tax assets and liabilities will be adjusted for the effects of enacted changes in tax laws
and rates.

Accounting for Joint Ventures

Investments in joint ventures have been recognized
in the consolidated financial statements using the equity method of accounting based on the guidelines established in FASB ASC
323. In applying this guidance, the Holding Company recognizes investments in joint ventures as assets at cost. Investments fluctuate
in future periods based on the Holding Company’s allocable share of earnings or losses from the joint ventures which is recognized
through earnings.

Pension and Post-Retirement Benefits

The amounts reported in our consolidated financial
statements related to pension and other post-retirement benefits are determined on an actuarial basis, which requires the use of
many assumptions in the calculation of such amounts. These assumptions include the discount rate, the expected return on plan assets,
the rate of compensation increase and, for other post-retirement benefits, the expected annual rate of increase in per capita cost
of covered medical and prescription benefits. Changes in actuarial assumptions and actuarial experience could have a material impact
on the amount of our pension and post-retirement benefit costs and funding requirements. In FY 2020, the mortality assumption was
revised to the sex-distinct Amount-Weighted Pri-2012 Mortality Tables for employees, healthy annuitants, and contingent survivors
with mortality improvements projected using Scale MP-2019 on a generational basis. The decrease in discount rate from 3.96% to
3.64% as of September 2020 increased the benefit obligation. The net effect of changes to the assumptions and discount rate is
an increase of approximately $1.6 million to the pension benefit obligation. However, we expect to recover substantially all our
net periodic pension and other post-retirement benefit costs attributed to employees in accordance with NYPSC authorization. For
financial reporting purposes, the difference between the amounts of such costs as determined under applicable accounting principles
is recorded as either a regulatory asset or liability.

Preferred Stock and Temporary Equity

The Holding Company classifies conditionally
redeemable convertible preferred shares, which includes preferred shares subject to redemption upon the occurrence of uncertain
events not solely within control of the Holding Company, as temporary equity in the mezzanine section of the consolidated balance
sheets, in accordance with the guidance enumerated in ASC No. 480 « Distinguishing Liabilities from Equity ». The Company
also analyzes the embedded conversion feature for bifurcation, based on whether the host instrument has more equity-like or debt-like
characteristics. Dividends are recorded as a reduction to retained earnings and issuance costs reduce the initial proceeds and
are then accreted over the life of the instrument to the redemption amount.

The Holding Company records mandatorily redeemable
stock as a liability in accordance with FASB ASC No. 480. Dividends are recorded as interest expense and issuance costs are treated
the same way as debt issuance costs.

CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING
STATEMENTS

This report contains statements which, to the
extent they are not recitations of historical facts, constitute « forward-looking statements » within the meaning of the
Securities Litigation Reform Act of 1995 (“Reform Act”). The words « estimate », « project », « anticipate »,
« expect », « intend », « believe », « could » and similar expressions are intended to identify
forward-looking statements. All such forward-looking statements are intended to be subject to the safe harbor protection provided
by the Reform Act. Although we believe that the expectations reflected in these forward-looking statements are based on reasonable
assumptions, we can give no assurance that our expectations will be achieved. As forward-looking statements, these statements involve
risks, uncertainties and other factors that could cause actual results to differ materially from the expected results. Accordingly,
actual results may differ materially from those expressed in any forward-looking statements. Factors that could cause results to
differ materially from our management’s expectations include, but are not limited to, those listed under Item 1A – « Risk Factors »
of this Annual Report on Form 10-K for the fiscal year ended September 30, 2020, in addition to:

* The impact of the COVID-19 pandemic,
* The effect of an interruption in our supply of natural gas or electricity or a substantial increase in the price of natural gas or electricity,
* Our ability to successfully negotiate new supply agreements for natural gas as they expire, on terms favorable to us, or at all,
* The effect on our operations of any action by the NYPSC or PAPUC,
* The effect of litigation,
* The effect on our operations of unexpected changes in other applicable legal or regulatory requirements,
* The amount of natural gas produced and directed through our pipeline by producers,
* Our ability to obtain additional equity or debt financing to fund our capital expenditure plans and for general corporate purposes,
*

Our successful completion of various capital
projects and the use of pipeline, compressor stations and storage by customers andcounterparties at levels consistent with our
expectations,

* Our ability to retain the services of our senior executives and other key employees,
*

Our vulnerability to adverse general economic
and industry conditions generally and particularly the effect of those conditions on our major customers,

* The effect of events in our transportation and delivery facilities, and
* Competition to our gas supply and transportation business from other pipelines.

Forward-looking statements speak only as of
the date they are made, and we undertake no obligation to update any forward-looking statement in light of new information or future
events.

ITEM 8 – FINANCIAL STATEMENTS AND SUPPLEMENTARY
DATA

The following financial statements are filed
with this Form 10-K:

Report
of Freed Maxick CPAs, P.C., Independent Registered Public Accounting Firm

Consolidated
Financial Statements:

Consolidated
Balance Sheets as of September 30, 2020 and 2019

Consolidated
Statements of Income for the years ended September 30, 2020 and 2019

Consolidated
Statements of Comprehensive Income for the years ended September 30, 2020 and 2019

Consolidated
Statements of Changes in Stockholders’ Equity for the years ended September 30, 2020 and 2019

Consolidated
Statements of Cash Flows for the years ended September 30, 2020 and 2019

Notes
to Consolidated Financial Statements

ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS
ON ACCOUNTING AND FINANCIAL DISCLOSURE

None

ITEM 9A. CONTROLS AND PROCEDURES

Evaluation of Disclosure Controls and Procedures

As of September 30, 2020, the Company’s
management, with the participation of the Company’s chief executive officer and chief financial officer, evaluated the effectiveness
of the design and operation of the Company’s disclosure controls and procedures as defined in Rule 13a-15(e) of the Securities
Exchange Act of 1934, as amended. Based upon the Company’s evaluation, the Company’s chief executive officer and chief
financial officer concluded that the Company’s disclosure controls and procedures are effective as of September 30, 2020.

Management’s Report on Internal Controls
over Financial Reporting

The management of the Company is responsible
for establishing and maintaining adequate internal controls over financial reporting as such term is defined in Exchange Act Rule
13a-15(f) and 15d-15(f). The Company’s internal controls over financial reporting are designed to provide reasonable assurance
regarding the reliability of financial reporting and the preparation of the consolidated financial statements. Our internal controls
over financial reporting is supported by appropriate reviews by management, written policies and guidelines, careful selection
and training of qualified personnel, and a written Code of Conduct adopted by our Company’s Board of Directors, applicable
to all Company Directors and all officers and employees of our Company.

The Audit Committee of our Company’s
Board of Directors meets with the independent public accountants and management periodically to discuss internal controls over
financial reporting and auditing and financial reporting matters. The Audit Committee reviews with the independent public accountants
the scope and results of the audit effort. The Audit Committee’s Report will be reported in the Proxy Statement issued in
connection with the Company’s 2021 Annual Meeting of Stockholders.

The Company’s management, including the
Company’s chief executive officer and chief financial officer, assessed the effectiveness of the Company’s internal
controls over financial reporting as of September 30, 2020. In making this assessment, management used the criteria set forth by
the Committee of Sponsoring Organizations of the Treadway Commission in Internal Control – Integrated Framework from
2013. Based upon that evaluation, our chief executive officer and chief financial officer concluded that our internal controls
over financial reporting was effective as of September 30, 2020.

Changes in Internal Control over Financial
Reporting

There were no changes in our internal control
over financial reporting identified in connection with the evaluation required by paragraph (d) of Exchange Act Rules 13a-15 or
15d-15 that was conducted during the last fiscal quarter for the Company that have materially affected, or are reasonably likely
to materially affect, our internal control over financial reporting.

ITEM 9B. OTHER INFORMATION

None

PART III

ITEM 10. DIRECTORS, EXECUTIVE OFFICERS AND
CORPORATE GOVERNANCE

The information required by Item 10 is incorporated
herein by reference to the Registrant’s definitive Proxy Statement relating to its 2021 Annual Meeting of Shareholders (the
« Proxy Statement »), under the captions « Board of Directors, » « Executive Officers, » « Section
16(a) Beneficial Ownership Reporting Compliance » and « Code of Business Conduct and Ethics » or an amendment to this
Annual Report in Form 10-K. The Proxy Statement, or an amendment to this Annual Report on Form 10-K containing the required information,
will be filed with the SEC prior to January 28, 2021.

ITEM 11. EXECUTIVE COMPENSATION

The information required by Item 11 will be
contained under the caption « Executive Compensation” in the Proxy Statement and incorporated herein by reference or
an amendment to this Annual Report on Form 10-K. The Proxy Statement, or an amendment to this Annual Report on Form 10-K containing
the required information, will be filed with the SEC prior to January 28, 2021.

ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL
OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS

The information required with respect to security
ownership of certain beneficial owners will be set forth under the caption « Principal Stockholders » and « Equity
Compensation Plan Information at September 30, 2020 » in the Proxy Statement and incorporated herein by reference or an amendment
to this Annual Report on Form 10-K. The Proxy Statement, or an amendment to this Annual Report on Form 10-K containing the required
information, will be filed with the SEC prior to January 28, 2021.

ITEM 13. CERTAIN RELATIONSHIPS AND RELATED
TRANSACTIONS, AND DIRECTOR INDEPENDENCE

The information required by Item 13 will be
contained under the caption « Certain Relationships and Related Transactions » and « Director Independence » in
the Proxy Statement and incorporated herein by reference or an amendment to this Annual Report on Form 10-K. The Proxy Statement,
or an amendment to this Annual Report on Form 10-K containing the required information, will be filed with the SEC prior to January
28, 2021.

ITEM 14. PRINCIPAL ACCOUNTING
FEES AND SERVICES

The information required
by Item 14 will be contained under the caption « Audit Committee Report – Principal Accounting Fees and Services » in the
Proxy Statement and incorporated herein by reference or an amendment to this Annual Report on Form 10-K. The Proxy Statement, or
an amendment to this Annual Report on Form 10-K containing the required information, will be filed with the SEC prior to January
28, 2021.

PART IV

ITEM 15. EXHIBITS AND
FINANCIAL STATEMENT SCHEDULES

(a) Financial Statement Schedules (see Item 8 Financial Statements and Supplementary Data)

(b) Exhibits

Exhibits
incorporated by reference for filings made before January 1, 1995 may be found in the Company’s Commission File 0-643

Exhibit
No.
Description
3.1 The Holding Company’s Certificate of Incorporation, (included as Exhibit B to the Proxy Statement/Prospectus forming portion of the Form S-4)
3.2 Second Amended and Restated By-laws of Corning Natural Gas Holding Corporation, effective February 6, 2018 (incorporated by reference to Exhibit 3.2 of the Company’s Current Report on Form 8-K dated February 6, 2018)
3.7 Certificate of Amendment to the Certificate of Incorporation with respect to the number of shares of common stock and preferred stock filed with the Department of State of the State of New York on May 1, 2018 (incorporated by reference to Exhibit 3.1 of the Company’s Current Report on Form 8-K dated May 1, 2018)
3.8 Certificate of Amendment of the Certificate of Incorporation of Corning Natural Gas Holding Corporation authorizing 261,500 Shares of 6% Series A Cumulative Preferred Stock Filed with the Department of State of the State of New York on June 29, 2020 (incorporated by reference to Exhibit 3.1 of the Company’s Current Report on Form 8-K dated June 29, 2020)
4.4* Corning Natural Gas Holding Corporation 2018 Employee Long-Term Incentive Plan (incorporated by reference to Appendix 1 of the Company’s definitive Proxy Statement on Schedule 14A filed with the Securities and Exchange Commission on March 22, 2018)
10.1* Employment Agreement dated November 30, 2006 between Michael German and the Company (incorporated by reference to Exhibit 10.2 of the Company’s Current Report on Form 8-K dated November 30, 2006)
10.2* Amended and Restated Severance Agreement effective August 18, 2006 between the Company and Kenneth J. Robinson (incorporated by reference to Exhibit 10.18 of the Company’s Current Report on Form 8-K dated August 14, 2006)
10.3* First Amendment to Employment Agreement between Michael I. German and the Company dated December 31, 2008 (incorporated by reference to Exhibit 10.1 of the Company’s Current Report on Form 10-Q dated August 12, 2009)

10. 4 Amended and Restated 2007 Stock Plan (incorporated by reference to Exhibit 10.2 of the Company’s Current Report on Form 10-Q dated August 12, 2009)
10.14* Settlement and Release Agreement between the Company and Thomas K. Barry dated December 30, 2011 (incorporated by reference to Exhibit 10.30 of the Company’s Registration Statement on Form S-1 (No. 333-182386), originally filed with the Securities and Exchange Commission on June 28, 2012)
10.16 Operating Agreement of the Leatherstocking Gas Company, LLC (incorporated by reference to Exhibit 10.32 of the Company’s Registration Statement on Form S-1 (No. 333-182386), originally filed with the Securities and Exchange Commission on June 28, 2012)
10.21* Form of Restricted Stock Agreement – Officers under the Corning Natural Gas Corporation’s Amended and Restated 2007 Stock Plan (incorporated by reference to Exhibit 10.1 of the Company’s Current Report on Form 8-K dated December 11, 2012)
10.22* Form of Restricted Stock Agreement – Non-employee Directors under the Corning Natural Gas Corporation’s Amended and Restated 2007 Stock Plan (incorporated by reference to Exhibit 10.2 of the Company’s Current Report on Form 8-K dated December 11, 2012)
10.32 Stock Purchase Agreement between the Holding Company and Article 6 Marital Trust under the First Amended and Restated Jerry Zucker Revocable Trust Dated April 2, 2007, dated April 7, 2014
10.33 Stock Purchase Agreement between the Holding Company and the Retirement Plan for the L.S. Starret Company with QCI Management, Inc., as Registered Investment Advisor dated April 14, 2014
10.34 Stock Purchase Agreement between the Holding Company and DBH, LLC with QCI Asset Management, Inc., as Registered Investment Advisor dated April 14, 2014
10.35 Stock Purchase Agreement between the Holding Company and Cold Spring Construction Profit Sharing Plan with QCI Asset Management, Inc., as Registered Investment Advisor dated April 14, 2014
10.37 Stock Purchase Agreement between the Holding Company and Timothy E. Delaney with QCI Asset Management, Inc., as Registered Investment Advisor dated April 14, 2014
10.38 Stock Purchase Agreement between the Holding Company and Robert B. Johnston dated April 16, 2014
10.48 Pledge
and Security Agreement between Corning Natural Gas Holding Corporation and Mirabito Regulated Industries, LLC with Wayne Bank
dated January 31, 2019 (incorporated by reference to Exhibit 10.6 of the September 2014 8-K)
10.49 Pledge
and Security Agreement between Corning Natural Gas Holding Corporation and Mirabito Regulated Industries, LLC with Wayne
dated January 31, 2019 (incorporated by reference to Exhibit 10.7 of the September 2014 8-K)
10.72 Loan Agreement between Leatherstocking Gas (Borrower) and Leatherstocking Pipeline (Guarantor) and Five Star Bank, dated July 11, 2016 (incorporated by reference to Exhibit 10.2 of the June 2016 10-Q)
10.73 General Security Agreement between Leatherstocking Gas and Five Star Bank dated July 11, 2016 (incorporated by reference to Exhibit 10.3 of the June 2016 10-Q)
10.74 General Security Agreement between Leatherstocking Pipeline and Five Star Bank dated July 11, 2016 (incorporated by reference to Exhibit 10.4 of the June 2016 10-Q)
10.79 Continuing Guaranty, dated August 31, 2016, from Corning Natural Gas Holding Corporation to M&T Bank with respect to the obligations of Pike County Light & Power Company to M&T Bank (incorporated by reference to Exhibit 10.5 on the September 2016 8-K)
10.87 Credit Agreement, dated August 31, 2020, between Corning Natural Gas Company and M&T Bank (incorporated by reference to Exhibit 10.1 of the Company’s Current Report on Form 8-K dated August 31, 2020)
10.88 Multiple Disbursement Term Note, dated August 15, 2018, from Corning Natural Gas Corporation to M&T Bank in the maximum principal amount of $3,600,000 (incorporated by reference to Exhibit 10.2 of the Company’s Current Report on Form 8-K dated August 31, 2020)
10.89 General Security Agreement, dated August 31, 2020, from Corning Natural Gas Corporation to M&T Bank (incorporated by reference to Exhibit 10.3 of the Company’s Current Report on Form 8-K dated August 31, 2020)
10.90 Replacement Credit Agreement, dated June 27, 2019, between Pike Light & Power Company and M&T Bank (incorporated by reference to Exhibit 10.1 of the Company’s Current Report on Form 8-K dated May 23, 2018)
10.91 Replacement Term Note, dated May 23, 2018, from Pike Light & Power Company to M&T Bank in the initial principal amount of $11,200,000 (incorporated by reference to Exhibit 10.2 of the Company’s Current Report on Form 8-K dated May 23, 2018)
10.92 Continuing Guaranty, dated June 27, 2019, between Pike Light & Power Company and M&T Bank (incorporated by reference to Exhibit 10.3 of the Company’s Current Report on Form 8-K dated May 23, 2018)
10.93 General Security Agreement, dated June 27, 2019, between Pike Light & Power Company and M&T Bank (incorporated by reference to Exhibit 10.4 of the Company’s Current Report on Form 8-K dated May 23, 2018)
10.94 Multiple Disbursement Term Note, dated June 27, 2019, from Corning Natural Gas Corporation to M&T Bank in the maximum principal amount of $3,127,000, with Prepayment Premium Rider. (incorporated by reference to Exhibit 10.1 on the December, 31 2019 10-Q)
10.95 Multiple Disbursement Term Note, dated June 27, 2019 from Pike Light & Power Company to M&T Bank in the maximum principal amount of $2,072,000, with Prepayment Premium Rider. (incorporated by reference to Exhibit 10.2 on the December, 31 2019 10-Q)

10.96 Form of Series C Preferred Stock Purchase Agreement dated March 27, 2020 between Corning Natural Gas Holding Corporation and the Series C Preferred Stock Purchasers (incorporated by reference to Exhibit 10.1 on the March, 31 2020 10-Q)
10.97 Term Note under the U.S. Small Business Administration Paycheck Protection Program issued by Corning Natural Gas Holding Corporation on April 17, 2020 to M&T Bank in the principal amount of $970,900 (incorporated by reference to Exhibit 10.2 on the March, 31 2020 10-Q)
10.98 Term Note under the U.S. Small Business Administration Paycheck Protection Program issued by Pike County Light & Power Company on April 22, 2020 to M&T Bank in the principal amount of $137,200 (incorporated by reference to Exhibit 10.3 on the March, 31 2020 10-Q)
21** Subsidiary of Company
23.1** Consent of Freed Maxick CPA’s, P.C.
24 Power of Attorney
31.1** Certification Pursuant to Section 302 of the Sarbanes-Oxley Act – Michael I. German
31.2** Certification Pursuant to Section 302 of the Sarbanes-Oxley Act – Charles A. Lenns
32.1*** Certification Pursuant to Section 906 of the Sarbanes-Oxley Act
101*** The
following materials from the Corning Natural Gas Corporation Annual Report on Form 10-K for the period ended September 30, 2020, formatted in XBRL (eXtensible Business Reporting Language):
(i)   the Consolidated Balance Sheets at September 30, 2020 and 2019
(ii)  the Consolidated Statements of Income for the years ended September 30, 2020 and 2019
(iii) the Comprehensive Income Statements for the years ended September 30, 2020 and 2019
(iv) the Consolidated Statements of Changes in Stockholders’ Equity for the years ended
September 30, 2020 and 2019
(v) the Consolidated Statements of Cash Flows for the years ended September 30, 2020 and 2019
(vi)  related notes to the Consolidated Financial Statements
* Indicates management contract or compensatory plan or arrangement
** Filed herewith
*** Furnished herewith

SIGNATURES

Pursuant to the requirements
of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf
by the undersigned, thereunto duly authorized.

CORNING
NATURAL GAS HOLDING CORPORATION
Date: December ##, 2020 /s/ Michael I. German
Michael I. German

President and Chief
Executive Officer

Pursuant to the requirements
of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the registrant
and in the capacities and on the dates indicated.

Date: December ##, 2020 /s/ Charles A. Lenns
Charles A. Lenns, Chief Financial Officer
(Principal Financial and Accounting Officer)
Date: December ##, 2020 /s/ Michael I. German
Michael I. German, President and Chief Executive Officer and Director
(Principal Executive Officer)
Date: December ##, 2020 *
Henry B. Cook, Chairman of the Board of Directors
Date: December ##, 2020 *
Ted W. Gibson, Director
Date: December ##, 2020 *
Robert B. Johnston, Director
Date: December ##, 2020 *
Joseph P. Mirabito, Director
Date: December ##, 2020 *
William Mirabito, Director
Date: December ##, 2020 *
George J. Welch, Director
Date: December ##, 2020 *
John B. Williamson III, Director

*By: /s/ [Attorney-in-fact]

[Attorney-in-fact]

Attorney-in-fact

REPORT OF INDEPENDENT
REGISTERED PUBLIC ACCOUNTING FIRM

Board of Directors and Shareholders

Corning Natural Gas Holding Corporation

Corning, New York

Opinion on the Financial Statements

We have audited the accompanying consolidated
balance sheets of Corning Natural Gas Holding Corporation and subsidiaries (collectively, the “Company”) as of September
30, 2020 and 2019, and the related consolidated statements of income, comprehensive income, changes in stockholders’ equity
and cash flows for the fiscal years then ended, and the related notes to the consolidated financial statements (collectively, the
financial statements). In our opinion, the consolidated financial statements present fairly, in all material respects, the financial
position of the Company as of September 30, 2020 and 2019, and the results of its operations and its cash flows for the years then
ended, in conformity with accounting principles generally accepted in the United States of America.

Basis for Opinion

These financial statements are the responsibility
of the Company’s management. Our responsibility is to express an opinion on the Company’s financial statements based
on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB)
and are required to be independent with respect to the Company in accordance with U.S. federal securities laws and the applicable
rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with
the standards of the PCAOB. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether
the financial statements are free of material misstatement, whether due to error or fraud. The Company is not required to have,
nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits we are required
to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the
effectiveness of the Company’s internal control over financial reporting. Accordingly, we express no such opinion.

Our audits included performing procedures to
assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures
that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures
in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made
by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a
reasonable basis for our opinion.

/s/ Freed Maxick CPAs, P.C.

We have served as the Company’s auditor since 2013.

Rochester, NY

December 21, 2020

CORNING NATURAL GAS HOLDING CORPORATION AND SUBSIDIARIES

Consolidated
Balance Sheets as of September 30,

Assets 2020 2019
Plant:
Utility property, plant and equipment $ 139,743,289 $ 121,041,738
Less: accumulated depreciation (30,853,644 ) (29,263,612 )
Total plant, net 108,889,645 91,778,126
Investments:
Marketable securities at fair value 2,193,112 2,184,170
Investment in joint ventures 264,640 2,597,919
2,457,752 4,782,089
Current assets:
Cash and cash equivalents 411,700 314,341
Customer accounts receivable (net of allowance for
uncollectible accounts of $42,263 and $66,470, respectively) 2,330,342 2,436,221
Other accounts receivable 527,280 335,481
Related party receivables 9,032 5,818
Gas stored underground 995,341 1,238,826
Materials and supplies inventories 3,156,345 2,747,194
Prepaid expenses 1,801,883 1,726,353
Total current assets 9,231,923 8,804,234
Regulatory and other assets:
Regulatory assets:
Unrecovered electric and gas costs 1,966,184 1,122,459
Deferred regulatory costs 4,894,434 4,264,396
Deferred pension 7,352,839 7,294,641
Goodwill 918,121
Other 748,408 562,703
Total regulatory and other assets 15,879,986 13,244,199
Total assets $ 136,459,306 $ 118,608,648

See accompanying notes to consolidated financial statements.

CORNING NATURAL GAS HOLDING CORPORATION AND SUBSIDIARIES

Consolidated Balance Sheets as of September 30,

2020 2019
Liabilities and capitalization
Long-term debt, less current installments $ 44,291,626 $ 37,939,785
Less: debt issuance costs (241,057 ) (276,885 )
Total long-term debt 44,050,569 37,662,900
Redeemable preferred stock – Series A 6,484,545 5,186,812
(Authorized 261,500 shares. Issued and outstanding:
260,600 shares at September 30, 2020 and 210,600 shares at September 30, 2019,
less issuance costs of $30,455 and $78,188, respectively)
Redeemable preferred stock – Series C 4,498,476
(Authorized 180,000 shares. Issued and outstanding:
180,000 shares at September 30, 2020 and -0- shares at September 30, 2019,
less issuance costs of $1,524 and $0, respectively)
Current liabilities:
Current portion of long-term debt 6,271,068 4,260,846
Borrowings under lines-of-credit and short-term debt 7,698,269 6,875,752
Accounts payable 2,293,980 1,826,604
Accrued expenses 339,809 422,557
Customer deposits and accrued interest 1,617,976 1,403,139
Dividends declared 529,301 502,559
Total current liabilities 18,750,403 15,291,457
Deferred credits and other liabilities:
Deferred income taxes 7,575,832 6,209,336
Regulatory liabilities 3,243,054 3,557,481
Deferred compensation 1,366,256 1,391,924
Pension costs and post-retirement benefits 9,407,774 9,683,393
Other 193,945 240,747
Total deferred credits and other liabilities 21,786,861 21,082,881
Commitments and contingencies (see Note 14)
Temporary equity:
Redeemable convertible preferred stock – Series B
(Authorized 244,500 shares. Issued and outstanding:
244,263 shares at September 30, 2020 and 2019) 4,954,937 4,966,893
Common stockholders’ equity:
Common stock ($.01 par value per share 30,725 30,470
($.01 par value per share. Authorized 4,500,000 shares. Issued and outstanding:
3,072,547 shares at September 30, 2020 and 3,047,060 at September 30, 2019)
Additional paid-in capital 28,144,702 27,745,837
Retained earnings 7,747,197 6,634,085
Accumulated other comprehensive income 10,891 7,313
Total common stockholders’ equity 35,933,515 34,417,705
Total liabilities and capitalization $ 136,459,306 $ 118,608,648

See accompanying notes to consolidated financial statements.

CORNING NATURAL GAS HOLDING CORPORATION AND SUBSIDIARIES

Consolidated Statements of Income for the years ended September 30,

2020 2019
Utility operating revenues:
Gas operating re venues $ 25,385,218 $ 27,300,195
Electric operating revenues 7,000,667 8,239,784
Total utility operating revenues 32,385,885 35,539,979
Cost of sales:
Gas purchased 5,501,237 7,742,728
Electricity purchased 1,609,314 2,806,907
Total cost of sales 7,110,551 10,549,635
Gross margin 25,275,334 24,990,344
Costs and expense:
Operating and maintenance expense 11,277,571 10,969,038
Taxes other than income taxes 3,643,828 3,617,169
Depreciation 2,621,385 2,499,558
Other deductions, net 507,633 460,104
Total costs and expenses 18,050,417 17,545,869
Utility operating income 7,224,917 7,444,475
Other income and (expense):
Interest expense (2,567,064 ) (2,325,642 )
Other expense (656,892 ) (616,403 )
Investment income 182,111 52,095
Loss from joint ventures (51,928 ) (142,656 )
Rental income 30,552 35,052
Income from utility operations before income taxes 4,161,696 4,446,921
Income tax expense (960,338 ) (1,322,689 )
Net income 3,201,358 3,124,232
Less Series B Preferred Stock Dividends 244,263 244,263
Net income attributable to common stockholders 2,957,095 2,879,969
Weighted average earnings per share-
basic $ 0.97 $ 0.95
diluted $ 0.95 $ 0.94
Average shares outstanding – basic 3,060,233 3,035,479
Average shares outstanding – diluted 3,353,349 3,328,595

See accompanying notes to consolidated financial statements.

CORNING NATURAL GAS HOLDING CORPORATION AND SUBSIDIARIES

Consolidated Statements of Comprehensive Income for the years ended September 30,

2020 2019
Net income $ 3,201,358 $ 3,124,232
Other comprehensive income:
Net unrealized gain on securities available for sale
net of tax of $1,212 and $11,693, respectively 3,578 16,851
Total comprehensive income $ 3,204,936 $ 3,141,083

See accompanying notes to consolidated financial statements.

CORNING NATURAL GAS HOLDING CORPORATION AND SUBSIDIARIES

Consolidated Statements of Changes in Stockholders’ Equity For the Years Ended September 30, 2020 and 2019

Accumulated
Additional Other
Number of Common Paid in Retained Comprehensive
Shares Stock Capital Earnings Income Total
Balances at September 30, 2018 3,021,851 $ 30,218 $ 27,320,162 $ 5,399,751 $ 90,593 $ 32,840,724
Adoption of accounting standard 100,131 (100,131 )
Issuance of common stock 25,209 252 425,675 425,927
Dividends declared on common ($0.575 per share) (1,745,766 ) (1,745,766 )
Dividends declared on Series B Preferred Stock ($1.00 per share) (244,263 ) (244,263 )
Comprehensive income:
Change in unrealized gain on securities available for sale, net of income taxes 16,851 16,851
Net income 3,124,232 3,124,232
Balances at September 30, 2019 3,047,060 30,470 27,745,837 6,634,085 7,313 34,417,705
Issuance of common stock 25,487 255 379,360 379,615
Stock option expense 19,505 19,505
Dividends declared on common ($0.603 per share) (1,843,983 ) (1,843,983 )
Dividends declared on Series B Preferred Stock ($1.00 per share) (244,263 ) (244,263 )
Comprehensive income:
Change in unrealized gain on securities available for sale, net of income taxes 3,578 3,578
Net income 3,201,358 3,201,358
Balances at September 30, 2020 3,072,547 $ 30,725 $ 28,144,702 $ 7,747,197 $ 10,891 $ 35,933,515

See accompanying
notes to consolidated financial statements.

CORNING NATURAL GAS HOLDING CORPORATION AND SUBSIDIARIES

Consolidated Statements of Cash Flows for the years ended September 30,

2020 2019
Cash flows from operating activities:
Net income $ 3,201,358 $ 3,124,232
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation 2,621,385 2,499,558
Amortization of debt issuance costs 109,512 109,977
Non-cash pension expenses 933,454 941,428
Regulatory asset amortizations 621,679 677,139
Stock issued for services and stock option expense 197,180 239,481
(Gain) loss on sale of marketable securities (49,823 ) 3,994
Unrealized gain (139,865 ) (69,021 )
Deferred income taxes 1,232,417 1,308,524
Bad debt expense 103,000 162,170
Loss from joint ventures 51,928 142,656
Changes in assets and liabilities:
(Increase) decrease in:
Accounts receivable (113,216 ) 802,815
Gas stored underground 243,485 382,090
Materials and supplies inventories (129,402 ) (928,220 )
Prepaid expenses (63,856 ) (258,323 )
Unrecovered gas and electric costs (843,725 ) 250,568
Deferred regulatory costs (1,243,599 ) (830,758 )
Other (185,705 ) 20,734
Increase (decrease) in:
Accounts payable 370,452 (1,420,772 )
Accrued expenses (76,839 ) 14,865
Customer deposits and accrued interest 214,837 175,741
Deferred compensation (25,668 ) (20,421 )
Deferred pension costs & post-retirement benefits (1,267,271 ) (525,844 )
Other liabilities and deferred credits (223,361 ) (195,174 )
Net cash provided by operating activities 5,538,357 6,607,439
Cash flows from investing activities:
Sale of securities, net 184,324 91,286
Amount received from (paid to) related parties (3,214 ) 200,513
Acquisition of business, net of cash acquired (1,893,081 )
Capital expenditures (8,672,162 ) (6,628,162 )
Net cash used in investing activities (10,384,133 ) (6,336,363 )
Cash flows from financing activities:
Net proceeds under lines-of-credit (72,126 ) 213,395
Debt issuance costs paid (36,411 )
Cash received from sale of Series C preferred stock Net 4,498,394
Dividends paid (1,859,564 ) (1,784,830 )
Proceeds under long-term debt 6,929,922 5,179,146
Repayment of long-term debt (4,553,491 ) (3,747,997 )
Net cash provided by (used in) financing activities 4,943,135 (176,697 )
Net increase in cash and cash equivalents 97,359 94,379
Cash and cash equivalents at beginning of year 314,341 219,962
Cash and cash equivalents at end of year $ 411,700 $ 314,341

Supplemental disclosures of cash flow information:
Cash paid during the year for:
Interest $ 2,829,244 $ 1,973,206
Income taxes (refunded) paid $ (341,777 ) 14,165
Non-cash financing activities:
Dividends paid with shares $ 201,940 $ 186,446
Number of shares issued as dividends 12,287 10,009
Supplemental disclosures of non-cash investing and financing activities:
Assumption of liabilities in business acquisition $ 6,971,290 $
Issuance of Series A preferred stock as consideration for business acquisition $ 1,250,000 $

See accompanying notes to consolidated financial statements.

CORNING NATURAL GAS HOLDING CORPORATION
AND SUBSIDIARIES

Notes to Consolidated Financial Statements

(1) Summary of Significant Accounting Policies

Corning Natural Gas Holding Corporation’s
(the “Holding Company”) primary business, through its subsidiaries, Corning Natural Gas Corporation (“Corning
Gas” or “Gas Company”), Pike County Light & Power Company (“Pike”), Leatherstocking Gas Company,
LLC (“Leatherstocking Gas”) and Leatherstocking Pipeline, LLC (“Leatherstocking Pipeline”), is natural
gas and electric distribution. Corning Gas provides gas on a commodity and transportation basis to its customers in the Southern
Tier of New York State. Pike provides electric and gas service to customers in Pike County, Pennsylvania. As used in these notes,
the term “the Company” refers to the consolidated operations of the Holding Company, the Gas Company and its dormant
subsidiary Corning Natural Gas Appliance Corporation (the “Appliance Company’), Pike, and (from July 1, 2020) Leatherstocking
Gas and Leatherstocking Pipeline. The Company follows the Uniform System of Accounts prescribed by the Public Service Commission
of the State of New York (“NYPSC”) which has jurisdiction over and sets rates for New York State gas distribution companies
and the Pennsylvania Public Utility Commission (“PAPUC”) which has jurisdiction over and sets rates for Pennsylvania
gas and electric distribution companies. The Company’s regulated operations meet the criteria to and, accordingly, follow
the accounting and reporting of the Financial Accounting Standard Board (“FASB”) ASC No. 980 “Regulated Operations”.
The Company’s consolidated financial statements contain the use of estimates and assumptions for reporting certain assets,
liabilities, revenue and expenses and actual results could differ from the estimates. The more significant accounting policies
of the Company are summarized below.

(a) Principles of Consolidation and Presentation

The consolidated financial statements include
the Holding Company and its wholly owned subsidiaries, Corning Gas, Pike, the Appliance Company and (from July 1, 2020) Leatherstocking
Gas and Leatherstocking Pipeline. All intercompany accounts and balances have been eliminated.

It is the Company’s policy to reclassify
amounts in the prior year financial statements to conform to the current year presentation.

(b) Utility Property,
Plant and Equipment

Utility property, plant
and equipment are stated at the historical cost of construction or acquisition. These costs include payroll, fringe benefits, materials
and supplies and transportation costs. The Company charges normal repairs to maintenance expense.

(c) Depreciation

The Company provides for depreciation for accounting
purposes using a straight-line method based on the estimated economic lives of property and equipment as determined by the current
rate plan based on the latest depreciation study. At the time utility properties are retired, costs of removal less any salvage
are charged to accumulated depreciation.

The depreciation rate used for Corning Gas
utility plant, expressed as an annual percentage of depreciable property, was 1.9% for the fiscal year ended September 30, 2020
(“FY 2020”) and 2.0% for the fiscal year ended September 30, 2019 (“FY 2019”). The NYPSC allows the Gas
Company recovery in revenues to offset costs of building certain projects.

The depreciation rate used for Pike, expressed
as an annual percentage of depreciable property, was 2.5% for FY 2020 and 2.1% FY 2019.

The depreciation rate used for the Leatherstocking
Companies, expressed as an annual percentage of depreciable property, was 3.4% for FY 2020. The PAPUC allows Leatherstocking Gas
to collect revenues from customers to offset cost of gas distribution system build out.

(d) Accounting for Impairment

FASB ASC No. 360-10-15, “Accounting for
the Impairment or Disposal of Long-Lived Assets” establishes accounting standards to account for the impairment of long-lived
assets, and certain identifiable intangibles. Under FASB ASC No. 360-10-15, the Company reviews assets for impairment whenever
events or changes in circumstances indicate that the carrying amount may not be recoverable. FASB ASC No. 360-10-15 also requires
that a rate regulated enterprise recognize an impairment when regulatory assets are no longer probable of recovery. No impairment
losses were incurred for the years ended September 30, 2020 and 2019.

(e) Marketable Securities

Marketable securities are intended to fund
the Gas Company’s deferred compensation plan obligations. Such securities are reported at fair value based on quoted market
prices. Unrealized gains and losses on debt securities classified as available for sale, net of the related income tax effect,
are excluded from income, and reported as a component of accumulated other comprehensive income in stockholders’ equity until
realized. Unrealized gains and losses on equity securities are included as a component of investment income in the consolidated
statement of income. The cost of securities sold was determined using the specific identification method. For all investments in
the unrealized loss position, none have been in an unrealized loss position for more than 12 months. None are other than temporary
impairments based on management’s analysis of available market research. In FY 2020 and FY 2019, the Gas Company sold equity
securities for realized gains (losses) included in earnings of $49,823 and ($3,994), respectively.

(f) Fair Value of Financial Instruments

The Company has determined the fair value of
debt and other financial instruments using a valuation hierarchy. The hierarchy, which prioritizes the inputs used in measuring
fair value, consists of three levels. Level 1 uses observable inputs such as quoted prices in active markets; Level 2 uses inputs
other than quoted prices in active markets that are either directly or indirectly observable; and Level 3, which is defined as
unobservable inputs in which little or no market data exists, requires the Company to develop its own assumptions. The carrying
amount of debt on the Consolidated Balance Sheets approximates fair value as a result of instruments bearing interest rates that
approximate current market rates for similar instruments, and the carrying amounts for cash, accounts receivable and accounts payable
approximate fair value due to their short-term nature. The assets used to fund the pension plan and marketable securities, which
fund the Gas Company’s deferred compensation plan, are valued based on Level 1 inputs.

The Company has determined the fair value of
certain assets through application of FASB ASC 820 “Fair Value Measurements and Disclosures”.

Fair value of assets and liabilities measured
on a recurring basis at September 30, 2020 and 2019 are as follows:

Fair Value Measurements at Reporting Date Using:
Fair Value Quoted Prices in Active Markets for
Identical Assets/Liabilities (Level 1)
Level 2 Level 3
September 30, 2020
Marketable securities $ 2,193,112 $       2,193,112 $ $
September 30, 2019
Marketable securities $ 2,184,170 $       2,184,170 $ $

Financial assets and liabilities valued using
level 1 inputs are based on unadjusted quoted market prices within active markets.

The pension assets in Note 12 are valued using
level 1 inputs.

(g) Cash and Cash Equivalents

Cash and cash equivalents include time deposits,
certificates of deposit, and all highly liquid debt instruments with original maturities of three months or less. Cash and cash
equivalents at financial institutions may periodically exceed federally insured limits.

(h) Accounts Receivable

Accounts receivable are stated net of an allowance
for doubtful accounts. The Company estimates the allowance based on its analysis of specific balances, taking into consideration
the age of past due accounts and relying on rules and guidelines established by the NYPSC and PAPUC regarding customer disconnects.

(i) Gas Stored Underground

Gas stored underground
is carried at an average unit cost method as prescribed by the NYPSC. Pike and Leatherstocking Gas do not have any gas storage.

(j) Materials and Supplies Inventories

Materials and supplies inventories are stated
at the lower of cost or net realizable value, cost being determined on an average unit price basis.

(k) Debt Issuance
Costs

Debt issuance costs are
presented as a direct deduction from the associated debt. Costs associated with the issuance of debt by the Company are amortized
over the lives of the related debt.

(l) Regulatory Matters

Certain costs of the
Company are deferred and recognized as expenses when they are reflected in rates and recovered from customers as permitted by FASB
ASC No. 980. These costs are shown as regulatory assets. Such costs arise from the traditional cost-of-service rate setting approach
whereby all prudently incurred costs are generally recoverable through rates. Deferral of these costs is appropriate while the
Company’s rates are regulated under a cost-of-service approach of the NYPSC and PAPUC for utilities (see Note 5 – Regulatory
Matters).

As regulated utilities, the Company defers
certain costs for future recovery. In a purely competitive environment, such costs might have been currently expensed. Accordingly,
if the Company’s rate settings were changed from a cost-of-service approach and the Gas Company, Pike and Leatherstocking
Gas were no longer allowed to defer these costs under FASB ASC No. 980, certain of these assets might not be fully recoverable.
However, the Company cannot predict the impact, if any, of competition and continues to operate in a cost-of-service based regulatory
environment. Accordingly, the Company believes that accounting under FASB ASC No. 980 is appropriate.

(m) Revenue Recognition

The Company has the obligation to deliver gas
and electricity to its customers. As gas and electricity are immediately available for use upon delivery to the customer, the gas
or electricity and its delivery are identifiable as a single performance obligation. The Company recognizes revenues as this performance
obligation is satisfied over time as the Company delivers, and its customers simultaneously receive and consume, the gas or electricity.
The amount of revenues recognized reflects the consideration the Company expects to receive in exchange for delivering the gas
or electricity. Under their tariffs, the transaction price for full-service customers includes the Company’s energy cost
and for all customers includes delivery charges determined based on customer class and in accordance with established tariffs and
guidelines of the NYPSC or the PAPUC, as applicable. Accordingly, there is no unsatisfied performance obligation associated with
these customers. The transaction price is applied to the Company’s revenue generating activities through the customer billing
process. Because gas and electricity are delivered over time, the Company uses output methods that recognize revenue based on direct
measurement of the value transferred, such as units delivered, which provides an accurate measure of value for the gas or electricity
delivered.

The Gas Company records revenues from residential
and commercial customers based on meters read on a cyclical basis throughout each month, while certain large industrial and utility
customers’ meters are read at the end of each month. Several meters are read at the end of each month to calculate local
production revenues. The Gas Company does not accrue revenue for gas delivered but not yet billed, as the NYPSC requires that such
accounting must be adopted during a rate proceeding which the Gas Company has not done. The Gas Company, as part of its currently
effective rate plan, has a weather normalization clause as protection against severe weather fluctuations. This affects space heating
customers and is activated when degree days are 2.2% greater or less than the 30-year average. As a result, the effect on revenue
fluctuations of weather related gas sales is somewhat moderated.

Pike recognizes revenues for electric and gas
service on a monthly billing cycle basis. Pike does not record unbilled revenues. Pike does not have a weather normalization clause
as protection against severe weather.

Leatherstocking Gas recognizes revenues for
gas service on a monthly billing cycle basis. Leatherstocking Gas does not record unbilled revenues. Leatherstocking Gas does not
have a weather normalization clause as protection against severe weather.

In addition to weather normalization, the Gas
Company has implemented a revenue decoupling mechanism (“RDM”). The RDM reconciles actual delivery service revenues
to allowed delivery service revenues (which are based on the annual customer and volume forecasts in the last rate case) for certain
residential customers. The Gas Company will refund or surcharge customers for differences between actual and allowed revenues.
The shortfall or excess after the annual reconciliation will be surcharged or refunded to customers over a twelve-month period
starting September 1st each year. Pike and Leatherstocking Gas do not have a revenue decoupling mechanism as part of
their rate structure.

Revenues are recorded as energy is delivered,
generated, or services are provided and billed to customers. Amounts billed are recorded in customer accounts receivable, with
payment generally due the following month.

For additional disclosures required by ASC
606, see Note 2.

(n) Cost of Sales

Cost of sales consists only of the costs of
purchasing gas and electricity sold during the period presented.

Gas purchases are recorded on readings of suppliers’
meters as of the end of each month. The Company’s rate tariffs include a Gas Adjustment Clause (“GAC”) or Gas
Rate Clause (“GRC”) which adjusts rates to reflect changes in gas costs from levels established in the rate setting
process. In order to match such costs and revenue, the NYPSC and PAPUC have provided for an annual reconciliation of recoverable
GAC and GRC costs with applicable revenue billed. Any excess or deficiency in GAC and GRC revenue billed is deferred and the balance
at the reconciliation date is either refunded to or recovered from customers over a subsequent twelve-month period.

As part of its rate structure for electric
sales, Pike is required to file quarterly a Statement of Default Services Charges. The Default Service Charges are separated into
two components: (1) the Market Price of Electric Supply which is based on the forecast of electric supply costs applied to service
classification-specific factors to reflect each service classification’s load characteristics, forecast sales and applicable
losses, and (2) an Electric Supply Adjustment Charge to reconcile differences between default service revenues and costs. The new
electric rates go into effect on the first day of the month after the filing is accepted.

(o) Operating and Maintenance Expense

Operating and maintenance expense includes
all personnel, administrative, and marketing expenses of the Company, as well as expenses incurred in the maintenance of the Company’s
utility property, plant and equipment.

(p) Federal Income Tax

The Company uses the asset and liability method
to establish deferred tax assets and liabilities for the temporary differences between the financial reporting basis and the tax
basis of the Holding Company’s assets and liabilities at enacted tax rates expected to be in effect when such amounts are
realized or settled. In addition, such deferred tax assets and liabilities will be adjusted for the effects of enacted changes
in tax laws and rates.

(q) Revenue Taxes

The Gas Company collects state revenue taxes
on residential delivery rates. The amount included in Revenue and Taxes other than Income Taxes was $300,286 and $300,876 in FY
2020 and FY 2019, respectively. Pike collects state taxes on total revenue. The amounts collected were $409,266 and $535,984 in
FY 2020 and FY 2019, respectively.

(r) Stock Based Compensation

The Holding Company accounts for stock based
awards in accordance with FASB ASC No. 718. The Holding Company awards restricted shares as compensation to our directors. 
The shares awarded become unrestricted upon a director leaving the board.  Directors who also serve as officers of Corning
Gas are not compensated for their service as directors. Since these shares are restricted, in recording compensation expense,
the expense incurred is recorded at 25% less than the closing price of the stock on the day the stock was awarded. The fair value
of stock options is determined using the Black Scholes option pricing model and expense recognition is based on the vesting provisions
of the options granted.

(s) Earnings Per Share

Basic earnings per share are computed by dividing
income available for common stock (net income less dividends declared on Series B Preferred Stock) by the weighted average number
of common shares outstanding for the period. Diluted earnings per share reflect the potential dilution that could occur if securities
or other contracts to issue common stock were exercised or converted into common stock.

For FY 2020, the impact of 10,000 stock options
outstanding as of September 30, 2020 was determined to be anti-dilutive and were not included in diluted shares. There were no
outstanding stock options as of September 30, 2019. The net income and average shares outstanding used to compute basic and diluted
earnings per share for the years ended September 30, 2020 and September 30, 2019 are as follows:

FY 2020 FY 2019
Net income attributable to common stockholders $ 2,957,095 $ 2,879,969
Add Preferred B Dividends 244,263 244,263
Net income $ 3,201,358 $ 3,124,232
Average shares outstanding – basic 3,060,233 3,035,479
Effect of Preferred B Shares 293,116 293,116
Average shares outstanding – diluted 3,353,349 3,328,595

The Company had 72 employees as of September
30, 2020, and 64 employees as of September 30, 2019. Of this total, approximately one third are members of the International Brotherhood
of Electrical Workers Local 139 labor union working under an agreement effective until April 5, 2021.

(u) Joint Ventures

Through June 30, 2020, the Holding Company
had a 50% investment in Leatherstocking Gas Company, LLC and Leatherstocking Pipeline Company, LLC. The investment and equity in
both companies (collectively, “Joint Ventures”) has been recognized in the consolidated financial statements. On July
1, 2020, Leatherstocking Gas Company, LLC distributed it’s New York assets into a new joint venture of which the Holding
Company owns 50% and the Holding Company acquired the remaining 50% interests in Leatherstocking Gas, LLC’s Pennsylvania
assets and the remaining 50% interests in Leatherstocking Pipeline Company, LLC. See Note 16. The Holding Company has accounted
for its equity investments using the equity method of accounting based on the guidelines established in FASB ASC No. 323. In applying
the guidance of FASB ASC 323, the Holding Company recognized the investment in the Joint Ventures as an asset at cost. The investment
will fluctuate in future periods based on the Holding Company’s allocable share of earnings or losses from the remaining
Joint Venture which is recognized through earnings.

(v) Preferred Stock and Temporary Equity

The Holding Company classifies conditionally
redeemable convertible preferred shares, which includes preferred shares subject to redemption upon the occurrence of uncertain
events not solely within control of the Holding Company, as temporary equity in the mezzanine section of the consolidated balance
sheets, in accordance with the guidance enumerated in FASB ASC No. 480-10 « Distinguishing Liabilities from Equity ». The
Company also analyzes the embedded conversion feature for bifurcation, based on whether the host instrument has more equity-like
or debt-like characteristics. Dividends are recorded as a reduction to retained earnings and issuance costs reduce the initial
proceeds and are then accreted over the life of the instrument to the redemption amount.

The Holding Company records mandatorily redeemable
stock as a liability in accordance with FASB ASC No. 480. Dividends are recorded as interest expense and issuance costs are treated
the same way as debt issuance costs.

(w) Adoption of New Accounting Guidance

On October 1, 2019, we
adopted Accounting Standards Update (“ASU”) 2016-02 “Leases” (Accounting Standards Codification (“ASC”)
Topic 842), including the amendments thereto, using a modified retrospective transition method of adoption that required no prior
period adjustments or charges to retained earnings for cumulative impact. From a lessee standpoint, on December 13, 2019 the Company
purchased the only material item for $280,000, which had been previously leased, a section of 10” gas main. Prior to purchase,
the Company paid a nominal fee annually for the use of this 10“ gas main. The Company did not change how this lease was accounted
for prior to purchase. From a lessor standpoint, the only material lease is the lease of space in the Company’s headquarters
to a local appliance company. This lease is an operating lease for which the Company receives less than $50,000 annually. The accounting
for the lease did not change upon adoption of the new standard and there was no significant impact on these consolidated financial
statements as a result of adoption of the new standard.

On October 1, 2018, we
adopted ASU 2016-01 “Financial Instruments—Recognition and Measurement of Financial Assets and Financial Liabilities”
(“ASU 2016-01”), ASC 606 – “Revenues from Contracts with Customers” (“ASC 606”)
and ASU 2017-07 “Compensation – Retirement Benefits”.

With respect to ASU 2016-01,
we reclassified net after-tax unrealized gains on equity securities of $100,131 as of October 1, 2018 from accumulated
other comprehensive income (loss) to retained earnings. We continue to carry our investments in equity securities at fair value
and there is no change to the asset values or total stockholders’ equity that we would have otherwise recorded. Beginning
in fiscal 2019, we are including unrealized gains and losses arising from the changes in the fair values of our equity securities
as a component of investment income in the Consolidated Statements of Income.

On October 1, 2018 we
adopted ASC 606 using the modified retrospective method, whereby the cumulative effect of the adoption is required to be recorded
as an adjustment to retained earnings. For FY 2019, the Company recognized revenues from contracts with customers in accordance
with ASC 606. The revenues recognized were equivalent to the revenues that would have been recognized had the Company not adopted
ASC 606 and had recognized all revenues in accordance with ASC 605 – Revenue Recognition (“ASC 605”). No prior
period adjustment or charge to retained earnings for cumulative impact was required as a result of the Company’s adoption
of ASC 606. ASC 606 also provides for certain other disclosures which are included in Note 2.

In March 2017, the FASB issued ASU 2017-07
“Compensation – Retirement Benefits” which amends the guidance related to the presentation of net periodic pension
cost and net periodic postretirement benefit cost. The new guidance requires segregation of the service cost component from the
other components of net periodic pension cost and net periodic postretirement benefit cost for financial reporting purposes. The
service cost component is to be presented on the income statement in the same line items as other compensation costs included within
Operating and maintenance expenses and the other components of net periodic pension cost and net periodic postretirement benefit
cost are to be presented on the income statement below the subtotal labeled Utility operating income. Under this guidance, the
service cost component is eligible to be capitalized as part of the cost of inventory or property, plant and equipment while the
other components of net periodic pension cost and net periodic postretirement benefit cost are generally not eligible for capitalization,
unless allowed by a regulator. The Company adopted this guidance effective October 1, 2018.

(x) New Accounting Pronouncements Not Yet
Adopted

In June 2016, the FASB issued ASU No. 2016-13, Financial
Instruments – Credit Losses (Topic 326), which provides a model, known as the current expected credit loss model, to
estimate the expected lifetime credit loss on financial assets, including trade and other receivables, rather than incurred losses
over the remaining life of most financial assets measured at amortized cost. The guidance also requires use of an allowance to
record estimated credit losses on available-for-sale debt securities. The new standard is effective for annual and interim periods
beginning after December 15, 2022. The Company is currently evaluating the impact of the guidance on their consolidated financial
statements and related disclosures.

In August 2018, the FASB issued ASU No. 2018-14, Compensation
– Retirement Benefits – Defined Benefit Plans – General (Subtopic 715-20): Disclosure Framework – Changes to the Disclosure Requirements
for Defined Benefit Plans, which amends the existing guidance relating to the disclosure requirements for Defined Benefit Plans.
The new standard is effective for fiscal years ending after December 15, 2020. The Company is currently evaluating the impact of
the guidance on their consolidated financial statements and related disclosures.

In August 2020, the FASB issued ASU No. 2020-06, Debt
– Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging – Contracts in Entity’s Own Equity
(Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity
, which simplifies the
accounting for certain financial instruments with characteristics of liabilities and equity, including convertible instruments
and contracts on an entity’s own equity. The new standard is effective for annual and interim periods beginning after December
15, 2021. The Company is currently evaluating the impact of the guidance on their consolidated financial statements and related
disclosures.

(2) Revenue from Contracts with Customers

The following tables present revenue from contracts
with customers as defined in ASC 606, as well as additional revenue from sources other than contracts with customers, disaggregated
by major source.

For the year ended September 30, 2020
Revenues from
contracts with
customers
Other
revenues (a)
Total utility
operating revenues
Corning Gas:
Residential gas $ 14,627,661 $ 134,775 $ 14,762,436
Commercial gas 2,081,125 2,081,124
Transportation 4,359,621 177,991 4,537,612
Street lights gas 390 390
Wholesale 1,731,433 1,731,433
Local production 694,237 694,237
Total Corning Gas 23,494,467 312,766 23,807,233
Pike:
Residential gas 1,139,761 2,932 1,142,693
Commercial gas 303,961 303,961
Total Pike retail gas 1,443,722 2,932 1,446,654
Residential electric 3,449,852 139,178 3,589,030
Commercial electric 3,288,582 3,288,582
Electric – street lights 123,055 123,055

Total Pike retail electric 6,861,489 139,178 7,000,667
Total Pike 8,305,211 142,110 8,447,321
Leatherstocking Companies (from July 1, 2020):
Residential gas 47,117 47,117
Commercial gas 31,031 31,031
Industrial Sales 53,183 53,183
Total Leatherstocking Companies 131,331 131,331
Total consolidated utility operating revenue $ 31,931,009 $ 454,876 $ 32,385,885

For the year ended September 30, 2019
Revenues from
contracts with
customers
Other
revenues (a)
Total utility
operating revenues
Corning Gas:
Residential gas $ 15,405,942 $ 583,941 $ 15,989,883
Commercial gas 2,453,170 (148,718 ) 2,304,452
Transportation 4,378,121 4,378,121
Street lights gas 468 468
Wholesale 2,236,053 2,236,053
Local production 698,203 698,203
Total Corning Gas 25,171,957 435,223 25,607,180
Pike:
Residential gas 1,321,742 16,718 1,338,460
Commercial gas 354,555 354,555
Total Pike retail gas 1,676,297 16,718 1,693,015
Residential electric 3,882,291 121,963 4,004,254
Commercial electric 4,108,681 4,108,681
Electric – street lights 126,849 126,849
Total Pike retail electric 8,117,821 121,963 8,239,784
Total Pike 9,794,118 138,681 9,932,799
Total consolidated utility operating revenue $ 34,966,075 $ 573,904 $ 35,539,979

(a) Other revenues include revenue from alternative
revenue programs, such as revenue decoupling mechanisms under New York gas rate plans and weather normalization clauses. This also
reflects reductions in revenues resulting from the deferral as regulatory liabilities of the net benefits of the federal Tax Act
of 2017.

The Gas Company has three major customers,
Corning Incorporated, New York State Electric & Gas, and Bath Electric, Gas & Water Systems. Although no customer represents
at least 10% of our total revenue, the loss of any of these customers could have a significant impact on the Company’s financial
results.

(3) Utility Property, Plant and Equipment

The following table summarizes fixed assets
included in utility property, plant and equipment on the Holding Company’s Consolidated Balance Sheets at September 30, 2020
and 2019:

2020 2019
Utility Plant $ 5,071,273 $ 5,037,937
Poles & Line 16,747,567 14,980,190
Pipeline 62,778,752 53,846,773
Structures 40,492,351 33,436,173
Land 1,825,453 1,787,034
Construction Work in Progress 5,208,487 3,892,686
All Other 7,619,406 8,060,945
$ 139,743,289 $ 121,041,738

Useful lives for the above assets range from
35 to 55 years for utility plant, 30 to 65 years for poles and line, 66 years for pipeline, from 45 to 47 years for structures,
50 to 65 years for land rights and 5 to 25 years for all other and corporate fixed assets. Utility plant includes station equipment,
services, meters, regulators including all costs to install those assets. Poles and line include poles, line and conductors. Total
mains installed are represented in pipeline. Structures include both regulator station buildings and office and operations buildings.
All other plant includes all general plant except for buildings and land and land rights. Accumulated depreciation as of September
30, 2020 and 2019 was $30,853,644 and $29,263,612 respectively. Depreciation expense for FY 2020 and FY 2019 was $2,621,385 and
$2,499,558 respectively.

(4) Marketable Securities

A summary of the marketable securities at September
30, 2020 and 2019 is as follows:

Cost Basis Unrealized Gain Unrealized Loss Market Value
September 30, 2020:
Cash and equivalents $ 120,559 $ $ $ 120,559
Metlife stock value 30,701 30,701
Government and agency bonds 143,960 9,312 153,272
Corporate bonds 143,196 3,951 147,147
Mutual funds 42,664 2,414 45,078
Corning Preferred A Stock 572,875 45,830 618,705
Equity securities 788,793 265,654 1,054,447
Commodities 21,881 1,322 23,203
Total securities $ 1,864,629 $ 328,483 $ $ 2,193,122
September 30, 2019:
Cash and equivalents $ 64,457 $ $ $ 64,457
Metlife stock value 39,810 39,810
Government and agency bonds 229,850 8,024 237,874
Corporate bonds 190,113 2,477 192,590
Mutual funds 22,359 486 22,845
Corning Preferred A Stock 572,875 41,247 614,122
Equity securities 866,600 145,872 1,012,472
Total securities $ 1,986,064 $ 198,106 $ $ 2,184,170

The government and agency bonds have contractual
maturity dates between January 5, 2022 and March 15, 2027. The contractual maturity dates for the corporate bonds are from August
15, 2021 to April 17, 2028.

(5) Regulatory Matters

Below is a summary of the Gas Company’s
deferred regulatory assets as of September 30, 2020 and 2019:

2020 2019
Unrecovered gas and electric costs $ 1,966,184 $ 1,122,459
Deferred regulatory costs 4,894,434 4,264,396
Deferred pension costs 7,352,839 7,294,641
Total regulatory assets $ 14,213,457 $ 12,681,496

Unrecovered gas costs arise from an annual
reconciliation of certain gas revenue and costs (as described in Note 1) and are recoverable in customer rates in the year following
the reconciliation.

The following table summarizes deferred regulatory
costs at September 30, 2020 and 2019:

2020 2019
2016 rate case costs $ 158,353 $ 253,353
2020 rate case costs 443,597
Deferred interest costs 740,612 478,433
Income tax assets and reconciliation 1,467,419 1,211,017
Storm costs 1,086,215 1,228,854
Leak repair costs 349,547 349,547
Delivery rate deferral 513,605 548,049
All other regulatory costs, net 135,086 195,143
Total $ 4,894,434 $ 4,264,396

Deferred rate case costs are costs that were
incurred to litigate prior base rate cases. These costs are recovered in rates over a period determined by the NYPSC or PAPUC.
All other deferred costs result from reconciliations approved by the regulators in the last base rate case or by specific Commission
directives. Recovery of these costs will be determined by the NYPSC and PAPUC either through Delivery Rate Adjustment or the next
rate case.

In fiscal year 2015 the Gas Company determined
that it met the criteria to record the minimum pension liability as a regulatory asset in accordance with FASB ASC 980-715-25-5.
As a result of this change in estimate, amounts previously recorded as Accumulated OCI, net of tax has been recorded as regulatory
assets in the current year in accordance with ASC 980-715-25-8, as well as a related deferred tax liability. The amount of the
regulatory asset was $6,307,265 as of September 30, 2020 and $6,520,833 as of September 30, 2019. For periods after the fiscal
year ended September 30, 2015, there will be no change to OCI because of the change in estimate. Factors considered included: (1)
consistent recovery of the pension costs on an accrual basis historically and in the current rate case, (2) no indication of expected
changes to recovery, and (3) the existence of a reconciliation process to track the recovery of these costs. For these reasons
management determined the Gas Company met the criteria as set forth in ASC 980-725-25-5.

Also included in pension costs and post-retirement
benefits is approximately $1,045,574 and $773,807 for fiscal years 2020 and 2019, respectively, for regulatory assets and (liabilities)
related to pension and post-retirement costs. These amounts include both amounts approved to be amortized in the previous rate
case and amounts being accumulated for the next rate case.

The Company expects to recover the cost of
its regulatory assets. The Company expects that regulatory assets other than deferred unrecovered gas costs and deferred pension
costs related to minimum pension liability will be fully recoverable from customers by the end of its next rate case.

Total Regulatory Assets on the Consolidated
Balance Sheets as of September 30, 2020 amount to $14,213,457 compared to $12,681,496 at September 30, 2019. The Regulatory Assets
include $1,435,762 at September 30, 2020 and $1,544,347 at September 30, 2019 that is subject to Deferred Accounting Petitions
and $2,463,304 at September 30, 2020 and $1,545,857 at September 30, 2019 that that will be considered in the Company’s next
base rate case. The remaining items in regulatory assets are either approved in rates, part of annual reconciliations approved
by the NYSPSC and PAPUC or approved through various commission directives.

(6) Long-term Debt

Long-term debt, including the current portion,
was as follows at September 30, 2020 and 2019:

2020 2019
Note Payable – fixed interest rate of 4.16% with monthly installments through November 2027 $ 21,978,316 $ 24,549,520
Note Payable – fixed interest rate of 4.92% with monthly installments through May 2028 9,064,012 10,010,035
Multiple Disbursement Note – variable interest rate through October 2018, fixed at 4.92% thereafter, with monthly installments through November 2028 3,035,067 3,335,974
Multiple Disbursement Note – variable interest rate through October 2019, fixed at 3.51% thereafter, with monthly installments through November 2029 2,887,401 1,836,662

Multiple Disbursement Note – variable interest rate through October 2019, fixed at 3.51% thereafter, with monthly installments through November 2029 1,955,778 1,643,043
Multiple Disbursement Note – variable interest rate through October 2020, fixed at 3.50% thereafter, with monthly installments through November 2030 3,687,741
Note Payable – fixed interest rate of 4.89% with monthly installments through February 2029 431,485 479,627
Note Payable – fixed interest rate of 4.75% with monthly installments through February 2029 5,223,833
Note Payable – fixed interest rate of 4.75% with monthly installments through February 2029 560,752
Payroll Protection Program loans – fixed interest rate of 1.00% due November 2021 if not forgiven 1,173,591
Vehicle loans – variable interest rate ranging from 4.81% to 5.83% 564,718 345,770
Total long-term debt 50,562,694 42,200,631
Less current installments 6,271,068 4,260,846
Long-term debt less current installments $ 44,291,626 $ 37,939,785

The aggregate maturities of long-term debt for each of the five years subsequent to September 30, 2020 are as follows:
2021 $ 6,271,068
2022 $ 6,178,252
2023 $ 5,687,656
2024 $ 6,007,762
2025 $ 6,210,093

On August 31, 2020, the Gas
Company entered into a fourth amended replacement and restated credit agreement (“the August 2020 Credit Agreement”)
with M&T Bank (“M&T”). The August 2020 Credit Agreement governs the Gas Company’s term note from November
2017 with an original principal of $29,000,000, the Gas Company’s multiple disbursement notes, and the Gas Company’s
$8.0 million line of credit loan is subject to customary debt covenants. On November 30, 2017, the Gas Company entered into a long-term
debt agreement with M&T for $29 million at a fixed rate of 4.16% with a ten year maturity. Principal and interest payments
on this term note commenced on December 30, 2017, with 120 consecutive monthly payments of $296,651 due on the last day of each
month, with the unpaid principal and any unpaid interest due and payable in full on November 30, 2027. This term note may be prepaid
upon payment of a prepayment premium equal to the greater of 1% of the amount prepaid or the present value of the spread between
the 4.16% fixed interest rate and the then current “market rate” based on the most recent U.S. Treasury Obligations
with a term corresponding to the remaining period to the maturity date. This term note is subject to the terms of the August 2020
Credit Agreement.

On May 23, 2018, Pike entered
into a credit agreement (the “May 2018 Credit Agreement”) with M&T and refinanced its outstanding loan with M&T,
issuing an $11.2 million term note pursuant to the May 2018 Credit Agreement. The note bears interest at 4.92%. The note is payable
in 119 consecutive monthly payments of $118,763 plus accrued interest, beginning on June 23, 2018 with a final payment of unpaid
principal and interest on the maturity date of May 23, 2028. The note is secured by all personal property of Pike. Pike will owe
a pre-payment penalty of 1% on any pre-paid principal made in advance of the maturity date. Loan is subject to customary debt covenants.

On August 15, 2018, the Gas
Company entered into a $3.6 million multiple disbursement term note with M&T which permitted draws from time to time in accordance
with its terms until October 31, 2018 at which time amounts outstanding under the note totaling $3.6 million converted to a ten
year term loan to be payable in 119 equal monthly installments with an additional final installment of unpaid principal and interest
due on November 30, 2028. Before converting to a term loan, the note bore interest at the one-month LIBOR rate plus 3%. After October
31, 2018, the interest rate was fixed at 4.92%. Additional terms of this note are substantially the same as those in the November
2017 Credit Agreement. This term note is subject to the terms of the August 2020 Credit Agreement.

On June 27, 2019, the Gas Company entered into a
$3.127 million multiple disbursement term note with Manufactures and Traders Trust Company Bank (“M&T”) which permitted
draws from time to time for capital expenditures in accordance with its terms until October 31, 2019 at which time amounts outstanding
under the note totaling $3.127 million converted to a ten year term loan, payable in 119 equal monthly installments with an additional
final installment of unpaid principal and interest due on November 30, 2029.  Before converting to a term loan, borrowings
on the note had a variable interest rate of the one-month LIBOR rate plus 3%. After October 31, 2019, the interest rate was fixed
at 3.51%.   This term note is subject to the terms of the August 2020 Credit Agreement.

On June 27, 2019, Pike entered into a $2.072 million
multiple disbursement term note with M&T which permitted draws from time to time for capital expenditures in accordance with
its terms until October 31, 2019 at which time amounts outstanding under the note totaling $2.072 million converted to a ten year
term loan, payable in 119 equal monthly installments with an additional final installment of unpaid principal and interest due
on November 30, 2029.  Before converting to a term loan, borrowings on the note had a variable interest rate of the one-month
LIBOR rate plus 3%.  After October 31, 2019, the interest rate was fixed at 3.51%.   This term note is subject to the
terms of the August 2020 Credit Agreement.

On August 31, 2020, Corning
Gas entered into a $3.718 million multiple disbursement term note with M&T which permitted draws from time to time to pay down
$250,000 of existing M&T debt and for capital expenditures in accordance with its terms until October 31, 2020 at which time
amounts outstanding under the note totaling $3.718 million converted to a ten year term loan, payable in 119 equal monthly installments
with an additional final installment of unpaid principal and interest due on November 30, 2030.  Before converting to a term
loan, borrowings on the note had a variable interest rate of 3.0% plus the greater of one-month LIBOR or 0.5%.  After October
31, 2020, the interest rate was fixed at 3.5%.  This term note is subject to the terms of the August 2020 Credit Agreement.

On December 4, 2018, Pike entered
into a demand note with M&T for $510,000, payable in 364 days unless otherwise converted into a term note.  On February
1, 2019 Pike converted the $510,000 demand note to a 10 year term loan with a fixed interest rate of 4.89% and monthly principal
and interest payments of $5,397.

On March 11, 2019, Leatherstocking
Gas received a $6,000,000 ten year term loan from Wayne Bank. Most of the borrowed funds were used to retire debt from a predecessor
lender. The interest rate for the first five years of the loan is a fixed rate of 4.75%. For years six through ten, the rate will
be equal to the five year U.S. Treasury rate plus 2.25%. Prepayment penalties apply. The loan is secured by Leatherstocking Gas
and Leatherstocking Pipeline assets, and is guaranteed by Leatherstocking Pipeline. The monthly principal and interest payment
for this loan is $ 63,108. The term loan is subject to the terms of a March 2019 Credit Agreement.

On August 30, 2019, Leatherstocking gas received
a $615,000 9.5 year term loan from Wayne Bank. This loan was designed to mirror the $6 million term loan described above. The interest
rate for the first 4.5 years of the loan is a fixed rate of 4.75%. For years six through ten, the rate will be equal to the five
year U.S. Treasury rate plus 2.25%. Prepayment penalties apply. The loan is secured by Leatherstocking Gas and Leatherstocking
Pipeline assets and is guaranteed by Leatherstocking Pipeline. The monthly principal and interest payment for this loan is $ 6,745.
The term loan is subject to the term of an August 2019 credit agreement.

On May 6, 2020, Corning Gas received a $970,900
loan under the U.S. Small Business Administration’s Payroll Protection Program. All or a portion of this loan may be forgiven
as part of the program. Payments on any amount not forgiven are expected to be deferred for six months, then paid back over an
eighteen month amortization period. Interest accrues at 1.0%. The proceeds from this loan are restricted as to use and cannot be
used to retire existing debt.

On April 28, 2020, Pike received
a $137,200 loan under the U.S. Small Business Administration’s Payroll Protection Program. All or a portion of this loan
may be forgiven as part of the program. Payments on any amount not forgiven are expected to be deferred for six months, then paid
back over an eighteen month amortization period. Interest accrues at 1.0%. The proceeds from this loan are restricted as to use
and cannot be used to retire existing debt.

On July 7, 2020, Leatherstocking
received a $65,491 loan under the U.S. Small Business Administration’s Payroll Protection Program. All or a portion of this
loan may be forgiven as part of the program. Payments on any amount not forgiven are expected to be deferred for six months, then
paid back over a 54 month amortization period. Interest accrues at 1.0% The proceeds from this loan are restricted as to use and
cannot be used to retire existing debt.

The Company was in compliance
with all of its loan covenants as of September 30, 2020.

(7) Lines of Credit

The Gas Company has a revolving
line of credit of $8.0 million with M&T subject to the August 2020 Credit Agreement. Outstanding amounts bear interest at a
variable rate determined by the Gas Company’s funded debt to EBITDA ratio calculated ninety days after the end of each quarter
added to the daily LIBOR rate. This line was renewed under the same terms with no expiration date. The amount outstanding under
this line on September 30, 2020 was approximately $5.1 million with an interest rate of 4.66%. The maximum amount outstanding during
FY 2020 was $6,803,816.

On August 31, 2016, Pike entered
into an agreement with M&T for a $2.0 million revolving line of credit at an interest rate equal to LIBOR plus 2.75% with principal
repayable on demand by the lender. This line was renewed under the same terms with no expiration date. The amount outstanding under
this line on September 30, 2020 was approximately $1.5 million with an interest rate of 2.94%. The maximum amount outstanding during
FY 2020 was $1,964,824. The agreement contains various affirmative and negative covenants of Pike including, (i) a total funded
debt to tangible net worth ratio of not greater than 1.4 to 1.0, (ii) a total funded debt to EBITDA ratio of not greater than 3.75
to 1.0, and (iii) a minimum cash flow overage of not less than 1.1 to 1.0, with each of the financial covenants measured quarterly
based on Pike’s trailing twelve month operating performance and fiscal quarterly financial statements commencing with the
period ended September 30, 2017; compliance, accounting, and financial statement requirements, and prohibitions on changes in management
or control, any sale of all or substantially all of its assets, acquisitions of substantially all the asset of any other entity,
or other material changes to its business, purposes, structure or operations which could materially adversely affect Pike.

On March 11, 2019, Leatherstocking
Gas extended an existing $1 million line of credit from Wayne Bank to a maximum amount of $1,500,000. The line of credit is for
an indefinite period, is guaranteed by Leatherstocking Pipeline, and is secured by Leatherstocking Gas and Leatherstocking Pipeline
assets. The interest rate on funds borrowed under the line of credit is the prime rate (3.25% at September 30, 2020). The amount
outstanding under this line on September 30, 2020 was approximately $1.1 million. The line of credit is subject to a March 2019
credit agreement.

(8) Preferred Stock

Series A Cumulative Preferred
Stock accrues cumulative dividends at a rate of 6.0% of the liquidation preference per share ($25.00) and are expected to be paid
on or about the 14th day of April, July, October and January of each year starting October 14, 2016. The dates of record for the
dividends, if any, will be March 31, June 30, September 30 and December 31, immediately preceding the relevant dividend payment
date. On September 30, 2023, outstanding shares of Series A Cumulative Preferred Stock will mature and be redeemed solely in cash
at a redemption price equal to the liquidation preference per share plus an amount equal to all accrued but unpaid dividends subject
to our having funds legally available for redemption under New York law. In the event of a fundamental change as defined on the
Certificate of Amendment to the Certificate of Incorporation, holders of Series A Cumulative Preferred Stock have the right to
redeem their shares at a redemption price equal to the liquidation preference per share plus an amount equal to all accrued but
unpaid dividends prior to the effective date of the fundamental change subject to our having funds legally available for such redemption
under New York law. A fundamental change is generally defined as a change of control of the Holding Company. The holders of Series
A Cumulative Preferred Stock will have no voting rights except as specifically required by New York laws or by the Charter, as
amended by the Certificate of Amendment, which allows voting rights under specific circumstances. If dividends on shares of Series
A Cumulative Preferred Stock have not been declared and paid for eight or more consecutive dividend periods, the holders of Series
A Cumulative Preferred Stock and Series B Convertible Preferred Stock, voting together as a single class with holders of all other
preferred stock of equal rank having similar voting rights, will be entitled at our next special or annual meeting of shareholders
to vote for the election of a total of one additional member of our Board of Directors, subject to certain limitations. On July
1, 2020, 50,000 shares of the Company’s 6% Series A Cumulative Preferred Stock valued at $1.25 million were issued in conjunction
with the Company’s acquisition of the previously unowned interests in the Leatherstocking Companies.

The Series A Cumulative Preferred
Stock will, with respect to both dividend rights and rights upon liquidation, winding-up or dissolution of the Corporation, rank:
(i) senior to all classes or series of the Corporation’s Common Stock; (ii) senior to any other class or series of the Corporation’s
capital stock issued in the future, unless the terms of that capital stock expressly provide that it ranks senior to, or on parity
with, the Series A Cumulative Preferred Stock; (iii) on parity with any class or series of the Corporation’s capital stock,
the terms of which expressly provide that it will rank on parity with the Series A Cumulative Preferred Stock, including without
limitation, the Series B Convertible Preferred Stock and the Series C Cumulative Preferred Stock; and (iv) junior to any other
class of series of the Corporation’s capital stock, the terms of which expressly provide that it will rank senior to the
Series A Cumulative Preferred Stock, none of which exists on the date hereof, and the issue of which would be subject to the approval
of a majority of the outstanding shares of Preferred Stock voting as a class; and (v) subject to funds legally available and payment
of or provision for the Corporation’s debts and other liabilities.

In accordance with FASB ASC
No. 480, because of the mandatory redemption feature, Series A Cumulative Preferred Stock is treated as a liability. The issuance
costs are treated as debt issuance costs and will be amortized over the life of the instrument and a direct reduction of the Preferred
A shares on the balance sheet. Unamortized debt issuance costs were $30,455 and $78,188 at September 30, 2020 and 2019, respectively.
Dividends are recorded as interest expense. As of September 30, 2020, $97,725 was accrued for the dividend paid on October 15,
2020. As of September 30, 2019, $78,975 was accrued for the dividend paid on October 15, 2019. Preferred A dividends recorded as
interest expense for FY 2020 and FY 2019 were $334,650 and $315,000, respectively.

Series B Convertible Preferred
Stock accrues cumulative dividends at a rate of 4.8% of the liquidation preference per share ($20.75) and are expected to be paid
on or about the 14th day of April, July, October and January of each year commencing October 14, 2016. The dates of record for
the dividends, if any, will be March 31, June 30, September 30 and December 31, immediately preceding the relevant dividend payment
date. At any time and from time to time after issuance, the shares of Series B Convertible Preferred Stock are convertible, in
whole or in part, at the option of the holder into shares of common stock at the rate of one-and-two-tenths (1.2) shares of our
common stock for each one (1) share of Series B Convertible Preferred Stock, subject to adjustment for standard anti-dilution adjustments
such as stock dividends or stock distributions; subdivisions or combinations of our common stock; and certain tender or exchange
offers by us or one of our subsidiaries for our common stock, in each case subject to certain exceptions. In the event a holder
of shares of the Series B Convertible Preferred Stock elects to convert any shares of Series B Convertible Preferred Stock that
would result in such shareholder owning more than 10% of the capital stock of the Gas Company under the provisions of Section 70
of the New York Public Service Law, that holder would be unable to exercise the conversion right without prior consent of the NYPSC.
The Holding Company will not pay any cash to a holder in respect of such conversion or otherwise settle any such conversion in
cash, other than the right of the holder to receive payment in lieu of any fraction of a share in exchange therefor. The NYPSC
approved the exercise of conversion rights on any Series B Convertible Preferred Stock by our three existing shareholders of 10%
or more of our common stock.

On September 30, 2026, outstanding
shares of Series B Cumulative Preferred Stock will mature and be redeemed solely in cash at a redemption price equal to the liquidation
preference per share plus an amount equal to all accrued but unpaid dividends subject to our having funds legally available under
New York law. In the event of a fundamental change as defined on the Certificate of Amendment to the Certificate of Incorporation,
holders of Series B Convertible Preferred Stock have the right to redeem their shares at a redemption price equal to the liquidation
preference per share plus an amount equal to all accrued but unpaid dividends prior to the effective date of the fundamental change
subject to our having funds legally available for such redemption under New York law. A fundamental change is generally defined
as a change of control of the Holding Company.

The holders of Series B Convertible
Preferred Stock will have no voting rights except as specifically required by New York laws or by the Holding Company’s Charter,
as amended by the Certificate of Amendment, which allows voting rights under specific circumstances as described in the Certificate
of Amendment. If dividends on shares of Series B Convertible Preferred Stock have not been declared and paid for eight or more
consecutive dividend periods, the holders of Series B Convertible Preferred Stock and the Series A Cumulative Preferred Stock,
voting together as a single class with holders of all other preferred stock of equal rank having similar voting rights, will be
entitled at our next special or annual meeting of shareholders to vote for the election of a total of one additional member of
our Board of Directors, subject to certain limitations.

The Series B Convertible Preferred
Stock will, with respect to both dividend rights and rights upon liquidation, winding-up or dissolution of the Corporation, rank:
(i) senior to all classes or series of the Corporation’s Common Stock; (ii) senior to any other class or series of the Corporation’s
capital stock issued in the future, unless the terms of that capital stock expressly provide that it ranks senior to, or on parity
with, the Series B Convertible Preferred Stock; (iii) on parity with any class or series of the Corporation’s capital stock,
the terms of which expressly provide that it will rank on parity with the Series B Convertible Preferred Stock, including without
limitation, the Series A Cumulative Preferred Stock and the Series C Cumulative Preferred Stock; and (iv) junior to any other class
of series of the Corporation’s capital stock, the terms of which expressly provide that it will rank senior to the Series
B Convertible Preferred Stock, none of which exists on the date hereof, and the issue of which would be subject to the approval
of a majority of the outstanding shares of Preferred Stock voting as a class; and (v) subject to funds legally available and payment
of or provision for the Corporation’s debts and other liabilities.

In accordance with FASB ASC
No. 480, Series B Cumulative Preferred Stock is not considered mandatorily redeemable as a result of the conversion feature presenting
a contingency related to the redemption dates. Accordingly, this is not considered a liability. However, as a result of the decision
related to conversion and not reaching redemption resting with the holder, this instrument has been classified as temporary equity
in accordance with ASC 480. The Company determined that bifurcation of the embedded conversion option feature was not required.
Upon conversion, the instrument would be reclassified as permanent equity. Dividends will be recorded each period in the consolidated
statement of changes in stockholders’ equity and began to accrue July 1, 2016. As of September 30, 2020, $61,066 was accrued
for dividends paid on October 15, 2020. As of September 30, 2019, $61,065 was accrued for dividends paid on October 15, 2019. The
issuance costs of approximately $150,000 reduce the initial proceeds and will be accreted until redemption or conversion.

Effective March 27, 2020, the
Holding Company issued 180,000 shares of newly authorized 6% Series C Cumulative Preferred Stock at $25.00 per share, for gross
proceeds of $4,500,000. Series C Cumulative Preferred Stock accrues cumulative dividends at a rate of 6.0% of the liquidation preference
per share ($25.00) and are expected to be paid on or about the 14th day of April, July, October and January of each year starting
July 14, 2020. The dates of record for the dividends, if any, will be March 31, June 30, September 30 and December 31, immediately
preceding the relevant dividend payment date. On September 30, 2026, outstanding shares of Series C Cumulative Preferred Stock
will mature and be redeemed solely in cash at a redemption price equal to the liquidation preference per share plus an amount equal
to all accrued but unpaid dividends subject to our having funds legally available for redemption under New York law. In the event
of a fundamental change as defined on the Certificate of Amendment to the Certificate of Incorporation, holders of Series C Cumulative
Preferred Stock have the right to redeem their shares at a redemption price equal to the liquidation preference per share plus
an amount equal to all accrued but unpaid dividends prior to the effective date of the fundamental change subject to our having
funds legally available for such redemption under New York law. A fundamental change is generally defined as a change of control
of the Holding Company. The holders of Series C Cumulative Preferred Stock will have no voting rights except as specifically required
by New York laws or by the Charter, as amended by the Certificate of Amendment, which allows voting rights under specific circumstances.
The proceeds of this issuance were used to buy the previously unowned interests in the Leatherstocking Companies and to finance
capital improvement projects at Pike and Corning.

The Series C Cumulative Preferred
Stock will, with respect to both dividend rights and rights upon liquidation, winding-up or dissolution of the Corporation, rank:
(i) senior to all classes or series of the Corporation’s Common Stock; (ii) senior to any other class or series of the Corporation’s
capital stock issued in the future, unless the terms of that capital stock expressly provide that it ranks senior to, or on parity
with, the Series C Cumulative Preferred Stock; (iii) on parity with any class or series of the Corporation’s capital stock,
the terms of which expressly provide that it will rank on parity with the Series C Cumulative Preferred Stock, including without
limitation, the Series A Cumulative Preferred Stock and the Series B Convertible Preferred Stock; and (iv) junior to any other
class of series of the Corporation’s capital stock, the terms of which expressly provide that it will rank senior to the
Series C Cumulative Preferred Stock, none of which exists on the date hereof, and the issue of which would be subject to the approval
of a majority of the outstanding shares of Preferred Stock voting as a class; and (v) subject to funds legally available and payment
of or provision for the Corporation’s debts and other liabilities.

In accordance with FASB ASC
No. 480, because of the mandatory redemption feature, Series C Cumulative Preferred Stock is treated as a liability. The issuance
costs are treated as debt issuance costs and will be amortized over the life of the instrument and a direct reduction of the Preferred
C shares on the balance sheet. Unamortized debt issuance costs were $1,524 and $0 at September 30, 2020 and 2019, respectively.
Dividends are recorded as interest expense. As of September 30, 2020, $67,500 was accrued for the dividend paid on October 15,
2020. There were no dividends accrued as of September 30, 2019 as no shares of Preferred C Cumulative Preferred Stock were issued
and outstanding. Preferred C dividends recorded as interest expense for FY 2020 and FY 2019 were $141,750 and $0, respectively.

(9) Stockholders’
Equity and Stock-based Compensation

For FY 2020, there were a total
of 25,487 shares of common stock issued for $177,675 of services and $201,940 in connection with the DRIP (dividend reinvestment
program). For FY 2019, there were a total of 25,209 shares of common stock issued for $239,481 of services and $186,446 in connection
with the DRIP (dividend reinvestment program). Shares issued were as follows:

Year ended September 30, 2020 Year ended September 30, 2019
Shares Amount Shares Amount
Dividend reinvestment program (DRIP) 12,287 $ 201,940 10,009 $ 186,446
Directors 12,600 167,041 12,600 189,782
Leatherstocking Gas Company 600 10,634 600 11,699
Officers 2,000 38,000
Total 25,487 $ 379,615 25,209 $ 425,927

Stock Options:

On August 31, 2020, immediately vested options
to purchase 10,000 shares of the Company’s common stock were issued to the Company’s new CFO. There were no stock options
outstanding as of October 1, 2018 and no options were issued during FY 2019. The following table summarizes this activity:

Number of
Options
Weighted
Average
Exercise Price
Weighted
Average
Remaining Life
(years)
Outstanding at September 30, 2019
Granted 10,000 $ 16.50 9.92
Exercised
Expired or Forfeited
Outstanding at September 30, 2020 10,000 $ 16.50 9.92

The Black-Scholes-Merton option pricing model
was used to estimate the fair value of share-based awards under FASB ASC Topic 718. The Black-Scholes-Merton option pricing model
incorporates various and highly subjective assumptions, including expected term and share price volatility.

The expected term of options granted was estimated
to be the average of the vesting term, historical exercise and forfeiture rates, and the contractual life of the option. The share
price volatility at the grant date is estimated using historical stock prices based upon the expected term of the options granted.
The risk-free interest rate assumption is determined using the rates for U.S. Treasury zero-coupon bonds with maturities similar
to those of the expected term of the award being valued.

The following table summarizes the assumptions
used to compute the fair value of the stock options granted:

Year ended
September 30, 2020
Assumptions for Black-Scholes:
Expected term in years 5.0
Volatility 22.55%
Risk-free interest rate 0.28%
Dividend yield 3.52%
Value of options granted:
Weighted average fair value per option $ 1.95
Fair value of options granted $ 19,505

Dividends:

Dividends on shares of common stock are accrued
when declared by the board of directors. As of September 30, 2020, $468,235 was accrued for dividends paid on October 15, 2020
to stockholders of record on September 30, 2020. As of September 30, 2019, $441,494 was accrued for dividends paid on October 15,
2019 to stockholders of record on September 30, 2019. Total dividends for FY 2020 and FY 2019 were $1,843,983 and $1,745,766, respectively.

(10) Investment in Joint Ventures

The Holding Company had
an interest in Leatherstocking Gas and Leatherstocking Pipeline, each of which was a joint venture with Mirabito Regulated Industries,
LLC (“Mirabito”), accounted for by the equity method. On July 1, 2020, Leatherstocking Gas Company, LLC distributed
to its members franchises, engineering and gas pipeline assets located in New York having a book value of $0.532 million. Celles-ci
assets were then contributed to the equity of Leatherstocking Gas Company of New York, Inc. The Company owns 50% of the common
shares of the newly formed Leatherstocking Gas Company of New York, Inc. and accounts for this investment using the equity method
of accounting. Mirabito has the option to acquire the Company’s interests in Leatherstocking Gas Company of New York,
Inc., for a purchase price of $100,000, beginning on the earlier of a change in control of the Company, or July 1, 2021, and ending
on June 30, 2023. If this option remains unexercised on June 30, 2023, The Company has the option for sixty days to acquire Mirabito’s
shares for a purchase price of $100,000. Also on July 1, 2020, the Company completed the acquisition of its partner’s 50%
interests in Leatherstocking Gas Company, LLC, and Leatherstocking Pipeline Company, LLC. See Note 16.

The following table represents the Holding
Company’s investment activity in the Joint Ventures at September 30, 2020 and September 30, 2019:

2020 2019
Beginning balance in investment in joint ventures $ 2,597,919 $ 2,740,575
Acquisition of previously unowned 50% interest in the Leatherstocking Companies (2,281,351 )
Loss in joint ventures during year (51,928 ) (142,656 )
Ending balance in joint ventures $ 264,640 $ 2,597,919

As of and for the year
ended September 30, 2020, the Joint Ventures had assets of $.527 million, liabilities of $0 million and combined net losses of
approximately ($104,000). As of and for the year ended September 30, 2019, the Joint Ventures had combined assets of $12.7 million,
combined liabilities of $7.5 million and combined net losses of approximately ($286,000).

(11) Income Taxes

Income tax expense for the years ended September 30 is as follows:

2020 2019
Current $ (272,079 ) $ 14,165
Deferred 1,232,417 1,308,524
Total $ 960,338 $ 1,322,689

Actual income tax expense differs from the expected tax expense computed at the statuary rate of 21.00% for the years ended September 30, 2020 and September 30, 2019 as follows:

2020 2019
Expected federal tax expense $ 873,956 $ 933,853
Prior year tax recorded 7,433 80,160
AMT credit refund (272,079 )
Federal income sur credit amortization 54,873 54,992
State tax expense (net of federal) 291,388 255,899
Other, net 4,767 (2,215 )
Actual tax expense $ 960,338 $ 1,322,689

The tax effects of temporary
differences that result in deferred income tax assets and liabilities at September 30 are as follows:

2020 2019
Deferred income tax assets:
Post-retirement benefit obligations $ 2,592,958 $ 2,762,794
NOL carryforwards 2,116,346 1,463,913
Customer Contribution 1,290,631 1,241,931

Regulatory reconciliation tax assets 434,833 350,320
Deferred compensation reserve 375,720 382,779
Other 539,389
Total deferred income tax assets 6,810,488 6,741,126
Deferred income tax liabilities:
Property, plant and equipment, principally due to differences in depreciation 9,653,332 8,668,093
Pension benefit obligations 2,119,400 2,099,588
Regulatory reconciliation tax liabilities 1,120,246 769,335
Bargain purchase 665,456 665,456
Storm costs 336,618 370,269
Recoverable fuel costs 428,093 306,471
Unbilled revenue 63,175 71,250
Total deferred income tax liabilities 14,386,320 12,950,462
Net deferred income tax liabilities $ 7,575,832 $ 6,209,336

The Company has a federal
net operating loss carryforward of $3.8 million and New York and Pennsylvania state tax net operating loss carry forwards of approximately
$7.9 million as of September 30, 2020 that begin to expire in 2025. As of September 30, 2019, the net operating loss carry forwards
were $3.7 million for federal and $6.2 million for state.

The alternate minimum
tax (“AMT”) credit carryover of $0.3 million along with estimated tax payments of $69,698, were refunded in the third
quarter of fiscal 2020. The Company paid no income taxes during fiscal 2020.

The NYSPSC issued an
order in Case 17-M-0815 that required the Company to quantify the amount of the deferred taxes that are due customers as a result
of the 2017 Tax Act. The PAPUC issued a similar order in Case M-2018-2641242. The estimated amount due customers has been recorded
as regulatory liability in the amount of $3,243,054 and $3,557,481, at September 30, 2020 and 2019, respectively.

The accounting rules for uncertain taxes provide
for the determination of whether tax benefits claimed or expected to be claimed on a tax return should be recognized in the financial
statements. The Holding Company has evaluated its tax positions and has not identified any significant uncertain tax positions.
The Holding Company’s policy is to classify interest associated with uncertain tax positions as interest expense in the financial
statements. Penalties are classified under other expense. The Holding Company files a consolidated federal income tax return and
a consolidated New York State tax return. The Holding Company and Pike file separate company Pennsylvania state income tax returns.

(12) Pension and Other Post-Retirement Benefit
Plans

There are currently three covered participants
related to the deferred compensation obligation that are all former officers. The liability on the consolidated balance sheets
represents the present value of the future obligation. In 1997, the Gas Company established a trust (the Rabbi Trust) to fund a
deferred compensation plan for certain officers. The fair market value of assets in the trust was $2,162,421 (plus $30,700 in additional
stock) and $2,144,360 (plus $39,810 in additional stock) at September 30, 2020 and 2019, respectively, and the plan liability,
which is labeled as deferred compensation on the consolidated balance sheets, was $1,366,266 and $1,391,924 at September 30, 2020
and 2019, respectively. The assets of the trust are available to general creditors in the event of insolvency. In 2020, the mortality
assumption was based on the 2008 VBT Primary Male Smoker tables with generational improvements using scale MP-2019 for two of the
covered participants which resulted in a decrease in the liabilities of $25,668.

The Gas Company has defined benefit pension
plans covering substantially all of its employees. The benefits are based on years of service and the employee’s highest
average compensation during a specified period. The Gas Company makes annual contributions to the plans equal to amounts determined
in accordance with the funding requirements of the Employee Retirement Security Act of 1974. Contributions are intended to provide
for benefits attributed for service to date, and those expected to be earned in the future.

In addition to the Gas Company’s defined
benefit pension plans, the Gas Company offers post-retirement benefits comprised of medical and life coverage to its employees
who meet certain age and service criteria. For union participants who retire on or after September 2, 1992, the Gas Company cost
for post-retirement benefits is contractually limited and will not exceed $150 per month. This contract is in effect until April
5, 2021. The monthly benefit for all non-union employees, who retire between the ages of 62 and 65, will be the lesser of 40% of
the retiree’s plan premium or $150. After age 65, the Gas Company pays up to $150 a month for the cost of the retiree’s
supplemental plan. In addition, the Gas Company offers limited life insurance coverage to active employees and retirees. The post-retirement
benefit plan is not funded. The Gas Company accrues the cost of providing post-retirement benefits during the active service period
of the employee.

The following table shows reconciliations of
the Gas Company’s pension and post-retirement plan benefits as of September 30:

Pension Benefits Post-retirement Benefits
2020 2019 2020 2019
Change in benefit obligations:
Benefit obligation at beginning of year $ 25,599,774 $ 21,830,528 $ 1,334,577 $ 1,235,289
Service cost (excluding expected expenses) 649,444 458,813 18,533 16,492
Interest cost 985,296 1,035,097 37,021 47,755
Participant contributions 101,339 123,014
Actuarial gain (loss) 1,265,309 3,490,391 (10,472 ) 123,846
Benefits paid (1,263,895 ) (1,215,055 ) (181,632 ) (211,819 )
Curtailments
Benefit obligation at end of year 27,235,928 25,599,774 1,299,366 1,334,577
Change in plan assets:
Fair value of plan assets at beginning of year 17,540,516 17,322,720
Actual return on plan assets 1,859,129 763,132
Company contributions 1,423,285 764,594 80,293 88,805
Participant contributions 101,339 123,014
Benefits paid (1,362,505 ) (1,309,930 ) (181,632 ) (211,819 )
Fair value of plan assets at end of year 19,460,425 17,540,516
Funded status (7,775,503 ) (8,059,258 ) (1,299,366 ) (1,334,577 )
Unrecognized net actuarial loss/(gain) 6,161,807 6,348,307 23,547 36,636
Unrecognized prior service cost 121,911 135,890
(Accrued) prepaid benefit cost (1,613,696 ) (1,710,951 ) (1,153,908 ) (1,162,051 )
Accrued contribution
Amounts recognized in the consolidated balance sheets consists of:
accrued benefit liability (7,775,503 ) (8,059,258 ) (1,299,366 ) (1,334,577 )
Amounts recognized in the balance sheets consist of:
Accrued pension cost as of beginning of fiscal year (1,710,951 ) (1,403,838 ) (1,162,051 ) (1,189,766 )
Pension (cost) (1,289,292 ) (1,326,030 ) (72,150 ) (61,090 )
Contributions 1,423,285 764,594
Change in receivable contribution (36,738 ) 254,323
Net benefits paid 80,293 88,805
Accrued pension cost as of end of fiscal year (1,613,696 ) (1,710,951 ) (1,153,908 ) (1,162,051 )
Fair value of plan assets at end of year
Cash and equivalents $ 1,958,521 $ 633,981
Government and agency issues 2,610,037 3,552,866
Corporate bonds 3,241,935 3,261,451
Fixed index funds 764,720 1,029,307
Fixed income 1,625,944 993,911
Equity securities 9,259,268 8,069,000
$ 19,460,425 $ 17,540,516

The funded status of both plans totaling a
deficiency of approximately $9.1 million and $9.4 million at September 30, 2020 and 2019, respectively, are included in pension
costs and post-retirement benefits on the consolidated balance sheets along with an additional pension regulatory liability of
approximately $333,000 and $290,000 as of September 30, 2020 and September 30, 2019, respectively for amounts owed to customers.
In the fourth quarter of fiscal 2015 the Gas Company determined that it meets the criteria to record these items as a regulatory
asset in accordance with FASB ASC No. 980-715-25-5.

Amortization of unrecognized net loss for the
Retirement Plan for the fiscal year ending September 30, 2020:

1 Projected benefit obligation as of September 30, 2020 $ 27,235,928
2 Plan assets at September 30, 2020 $ 19,460,425
3 Unrecognized loss as of September 30, 2020 $ 6,161,807
4 Ten percent of greater of (1) or (2) $ 2,723,593
5 Unamortized loss subject to amortization – (3) minus (4) $ 3,438,214
6 Active future service of active plan participants expected to receive benefits 12.80
sept Minimum amortization of unamortized net loss – (5)/(6) $ 268,631
8 Amortization of loss for 2020-2021 $ 976,625

Amortization of unrecognized
net loss for the Post-Retirement Plan for the fiscal year ended September 30, 2020:

Unrecognized net loss at October 1, 2019 subject to amortization $ 121,911
Amortization period 13 years
Amortization for 2020 – 2021 (loss divided by period) $ 9,378

The service cost component of our pension and
other postretirement plans, net of amounts capitalized, are reflected in “Operating and maintenance expense” on the
Consolidated Statements of Income. The non-service cost components, net of amounts capitalized as a regulatory asset, are reflected
in “Other expense” on the Consolidated Statements of Income. Net periodic benefit cost includes the following components:

Pension Benefits Post-retirement Benefits
FY 2020 FY 2019 FY 2020 FY 2019
Components of net period benefit cost:
Service cost $ 744,444 $ 465,813 $ 18,533 $ 16,492
Interest cost 985,296 1,035,097 37,021 47,755
Expected return on plan assets (1,300,997 ) (1,279,864 )
Amortization of prior service 13,979 3,552
Amortization of unrecognized actuarial loss 897,287 850,661 2,617 (6,709 )
Net periodic benefit cost $ 1,326,030 $ 1,071,707 $ 72,150 $ 61,090

For ratemaking and financial statement purposes,
pension and post-retirement represents the amount approved by the NYPSC in the Gas Company’s most recently approved rate
case. Pension and post retirement expense (benefit) for ratemaking and financial statement purposes was $933,454 and $941,427 for
FY 2020 and FY 2019, respectively. The difference between the pension expense (benefit) for ratemaking and financial statement
purposes, and the amount computed above has been deferred as regulatory assets and are not included in the prepaid pension cost
noted above. The cumulative amounts deferred equal $1,045,574 and $750,902 as of September 30, 2020 and 2019, respectively.

Pension Benefits Post-retirement Benefits
2020 2019 2020 2019
Weighted average assumptions used to determine net
period cost at September 30:
Discount rate 3.64% 3.96% 2.21% 2.86%
Salary increases 3.50% 3.50% N/A N/A
Expected return on assets 7.50% 7.50% N/A N/A

For FY 2020 and FY 2019, the discount rate
was prepared by utilizing an analysis of the plan’s expected future cash flows and high-quality fixed-income investments
currently available and expected to be available during the period to maturity of the pension benefits. The discount rate used
is an estimate of the rate at which a defined benefit pension plan could settle its obligations. Rather than using a rate and
curve developed using a bond portfolio, this method selects individual bonds to match to the expected cash flows of the Plan.
Management feels this provides a more accurate depiction of the true cost to the Plan to settle the obligations as the Plan could
theoretically go into the marketplace and purchase the specific bonds used in the analysis in order to settle the obligations
of the Plan.

The expected returns on plan assets of the
Retirement Plan and Post-Retirement Plan are applied to the market-related value of plan assets of the respective plans. For the
Retirement Plan, the market-related value of assets recognizes the performance of its portfolio over five years and reduces the
effects of short-term market fluctuations. The Gas Company’s Retirement Plan assets are invested by a manager that reports
at least annually to the Gas Company’s Investment Committee for review and evaluation. The manager has been given the objective
to achieve modest capital appreciation with a secondary objective of achieving a relatively high level of current income using
a mix of cash equivalents, fixed income securities and equities to structure a balanced investment portfolio. The Investment Committee
does not reserve control over investment decisions, with the exception of certain limitations, and holds the manager responsible
and accountable to achieve the stated objectives. The market-related value of Post-Retirement Plan assets is set equal to market
value.

For measurement purposes, a 6.50% annual rate
of increase in the per capita cost of covered benefits (health care cost trend rate) was assumed for 2020. A 1% increase in the
actual health care cost trend would result in approximately a 3.06% increase in the service and interest cost components of the
annual net periodic post-retirement benefit cost and a 4.59% increase in the accumulated post-retirement benefit obligation. A
1% decrease in the actual health care cost trend would result in approximately a 2.25% decrease in the service and interest cost
components of the annual net periodic post-retirement benefit cost and a 3.80% decrease in the accumulated post-retirement benefit
obligation.

The Gas Company contributed $1,423,285 and
$764,594 to the Retirement Plan during FY 2020 and FY 2019, respectively.

The estimated pension plan benefit payments are as follows:
2021 $ 1,513,952
2022 $ 1,508,365
2023 $ 1,518,476
2024 $ 1,552,685
2025 $ 1,614,898
2026+ $ 7,827,397

The Gas Company also maintains the Corning
Natural Gas Corporation Employee Savings Plan (the “Savings Plan”). All employees of the Gas Company who work for more
than 1,000 hours per year and who have completed one year of service may enroll in the Savings Plan at the beginning of each calendar
quarter. Under the Savings Plan, participants may contribute up to 50% of their wages subject to limits imposed by ERISA and federal
tax law. For all employees, the Gas Company matches one-half of the participant’s contribution up to a total of 6% of the
participant’s wages. The plan is subject to the federal limitation. The Gas Company contribution to the plan were $105,225
in FY 2020 and $95,203 in FY 2019.

(13) Segment Reporting

The Company’s reportable
segments have been determined based upon the nature of the products and services offered, customer base, availability of discrete
internal financial information, homogeneity of products, delivery channel and other factors.

The Corning Natural Gas
Corporation (the “Gas Company”) is a gas distribution company providing gas on a commodity and transportation basis
to its customers in the Southern Tier of New York State. Pike County Light & Power Company (“Pike”) provides electricity
and natural gas to Pike County, Pennsylvania. The Holding Company is the parent company of all subsidiaries and has a 50% ownership
in the Leatherstocking joint ventures. Leatherstocking Gas and Leatherstocking Pipeline are presented together as the Leatherstocking
Companies in the table below. Leatherstocking Gas provided natural gas service to customers in northeast Pennsylvania. Leatherstocking
pipeline has had no revenues since 2018. Corning Natural Gas Appliance Corporation’s (the “Appliance Company”)
information is presented with the Holding Company as it is has little activity.

The following table reflects the results of
the segments consistent with the Holding Company’s internal financial reporting process. The following results are used in
part, by management, both in evaluating the performance of, and in allocating resources to, each of the segments.

For the year ended September 30, 2020
Gas Company Pike Leatherstocking
Companies*
Holding
Company
Total
Consolidated
Total electric utility revenue $ 0 $ 7,000,667 $ 0 $ 0 $ 7,000,667
Total gas utility revenue $ 23,807,233 $ 1,446,654 $ 131,331 $ 0 $ 25,385,218
Investment income $ 181,978 $ 0 $ 0 $ 133 $ 182,111
Equity investment (loss) $ 0 $ 0 $ 0 $ (51,928 ) $ (51,928 )
Net income (loss) $ 3,198,642 $ 295,258 $ (124,639 ) $ (167,903 ) $ 3,201,358
Income tax expense (benefit) $ 1,236,697 $ 156,769 $ (54,597 ) $ (378,531 ) $ 960,338
Interest expense $ 1,284,074 $ 669,002 $ 89,729 $ 524,259 $ 2,567,064
Depreciation expense $ 1,880,619 $ 658,667 $ 78,439 $ 3,660 $ 2,621,385
Amortization expense $ 278,408 $ 401,882 $ 3,042 $ 47,859 $ 731,191
Total assets $ 94,147,736 $ 29,165,796 $ 12,326,387 $ 819,387 $ 136,459,306
Capital expenditures $ 6,686,081 $ 1,986,081 $ 0 $ 0 $ 8,672,162
* from July 1, 2020

For the year ended September 30, 2019
Gas Company Pike Leatherstocking
Companies*
Holding
Company
Total
Consolidated
Total electric utility revenue $ 0 $ 8,239,784 $ 0 $ 0 $ 8,239,784
Total gas utility revenue $ 25,607,180 $ 1,693,015 $ 0 $ 0 $ 27,300,195
Investment income $ 52,095 $ 0 $ 0 $ 0 $ 52,095
Equity investment (loss) $ 0 $ 0 $ 0 $ (142,656 ) $ (142,656 )
Net income (loss) $ 2,780,092 $ 806,675 $ 0 $ (462,535 ) $ 3,124,232
Income tax expense (benefit) $ 1,122,170 $ 218,989 $ 0 $ (18,470 ) $ 1,322,689
Interest expense $ 1,382,394 $ 654,136 $ 0 $ 289,112 $ 2,325,642
Depreciation expense $ 1,836,873 $ 659,025 $ 0 $ 3,660 $ 2,499,558
Amortization expense $ 336,562 $ 402,778 $ 0 $ 47,776 $ 787,116
Total assets $ 88,098,228 $ 27,415,639 $ 0 $ 3,094,781 $ 118,608,648
Capital expenditures $ 4,442,609 $ 2,185,553 $ 0 $ 0 $ 6,628,162
*Not consolidated in fiscal 2019

(14) Commitments and Contingencies

The Gas Company is a local distribution company
and has contracted for gas supply from various sources to provide the commodity to the city gates. The city gate is the transfer
point at which we take ownership of the gas supply from local producers and interstate pipelines and billing metering starts. The
Gas Company maintains storage capacity of approximately 736,000 dekatherms. The Gas Company is responsible for managing its gas
supply assets. At September 30, 2020, the Gas Company had 573,609 dekatherms at a cost of $995,341 in storage. As the result of
these actions, we anticipate that the Gas Company will have sufficient gas to supply our customers for the 2020-2021 winter heating
saison. At September 30, 2019, the Gas Company had 596,454 dekatherms at a cost of $1,238,826 in storage. The contract with O&R
should provide sufficient electricity and natural gas to supply Pike for the 2020-2021 winter heating and summer cooling.

The Gas Company has secured the NYPSC required
fixed price and storage gas supply for the winter season and is managing its gas storage and gas contracts to assure that the Gas
Company follows its gas supply and acquisition plan. The gas supply plan is a formal document that defines how we acquire natural
gas to supply our customers. The plan is submitted to the NYPSC every year and adherence to the plan is a regulatory mandate. Assuming
no extraordinary conditions for the winter season, gas supply, both flowing and storage, will be adequate to serve our approximately
15,000 customers.

Environmental Considerations: The Company is
subject to various federal, state and local environments laws and regulations. The Company has established procedures for the ongoing
evaluation of its operations to identify potential environmental exposures and assure compliance with regulatory policies and procedures.
Management believes the Company is in compliance with all applicable regulations.

(15) Related Party Transactions

Related party receivables are expenditures
paid on behalf of the Holding Company’s joint venture investments. The outstanding receivable as of September 30, 2020 and
September 30, 2019 was $9,032 and $5,818 respectively.

(16) Business Acquisition

On July 1, 2020, the Company completed the
acquisition of its partner’s 50% interests in Leatherstocking Gas Company, LLC, and Leatherstocking Pipeline Company, LLC.
Immediately before the acquisition, on July 1, 2020, Leatherstocking Gas Company, LLC distributed to its members franchises, engineering
and gas pipeline assets located in New York having a book value of $0.532 million. These assets were then contributed to the equity
of Leatherstocking Gas Company of New York, Inc. The Company owns 50% of the common shares of the newly formed Leatherstocking
Gas Company of New York, Inc. and will account for this investment using the equity method of accounting. The acquisition
of the Company’s partner’s 50% interest in The Leatherstocking Companies fits the Company’s goal of expanding
its service offerings in northeast Pennsylvania.

The Company applies the acquisition method
of accounting for business acquisitions. Under the acquisition method, the purchase price of an acquisition is assigned to the
underlying tangible and intangible assets acquired and liabilities assumed based on their respective fair values at the date of
acquisition. The book value of the assets acquires was determined to approximate their fair value on the acquisition date. Amortization
of goodwill related to the Leatherstocking Companies acquisition is deductible for tax purposes. Goodwill is included in the total
assets of the Leatherstocking Companies segment for segment reporting. The goodwill is primarily attributable to expected synergies
and the assembled workforce.

Total consideration paid for the acquisition
of the interests in the Leatherstocking Companies was $3.2 million, consisting of cash of $1.95 million and 50,000 shares of the
Company’s 6% Series A Cumulative Preferred Stock valued at $1.25 million. The Company’s equity in the Leatherstocking
Companies prior to the acquisition transaction approximated the fair value of that investment. There were no significant acquisition
costs. The following is a summary of the purchase price allocation to the fair value of the Leatherstocking Companies assets and
liabilities acquired.

Consideration paid:
Cash $ 1,950,000
Series A Cumulative Preferred Stock 1,250,000
3,200,000
Fair value of previously held interest 2,281,351
Total 5,481,351
Assets:
Goodwill 918,121
Utility property, plant and equipment 11,060,742
Deferred debits 49,732
Cash 56,919
Other current assets 367,127
Total assets acquired 12,452,641
Liabilities:
Long term debt 5,985,631
Short term notes 894,644
Current liabilities 91,015
Total liabilities assumed 6,971,290
Total $ 5,481,351

The results of the Leatherstocking Companies
are included in the Company’s consolidated operating results as of the date the acquisition was completed. The following
unaudited pro forma information presents the Company’s consolidated operating results as if the Leatherstocking Companies
had occurred at the beginning of fiscal year 2019. The pro forma results do not purport to represent what the Company’s consolidated
operating results actually would have been if the transaction had occurred at the beginning of fiscal 2019 or what the Company’s
consolidated operating results will be in the future.

Fiscal Year Ended September 30,
2020 2019
Total Revenue $ 33,516,435 $ 36,761,240
Net Income $ 3,161,114 $ 2,963,516

(17) Subsequent Events

On November 18, 2020, the Internal Revenue
Service issued Revenue Ruling 2020-27, related to the income tax treatment of expenses paid with proceeds of Paycheck Protection
Program (“PPP”) loans. This ruling provides that expenses paid with PPP funds are not tax deductible, even if the borrower
has not received forgiveness of their PPP loans, if the borrower reasonably believes that loan forgiveness will occur. This ruling
supplements the IRS position on PPP loans that was announced in Notice 2020-32, issued in April of 2020. The notice disallowed
deductions for expenses on PPP loans that are forgiven under the PPP program. The Company’s PPP loans totaling approximately
$1.2 million have not yet been forgiven. The November Revenue Ruling would accelerate the non-deductibility of the Company’s
PPP funded expenses to its September 30, 2020 tax year end. The Company has treated this ruling as a change in tax law subsequent
to its year end, and will account for its impact (an increase in income tax expense of approximately $300,000) in the first quarter
of fiscal 2021. Assuming that the Company’s PPP loans will be forgiven, this increase in tax expense will offset the expected
recognition of income in fiscal 2021 from the forgiveness of PPP loans of approximately $1.2 million. The regulatory treatment
of these matters is uncertain.

Restricted Stock:

In October 2020, the Company issued to its
new CFO, who became CFO on July 1, 2020, 4,500 shares of restricted stock. Restrictions are based on continued employment with
the Company and the restrictions lapse over a period beginning on June 1, 2021, and ending on December 1, 2022. The value of the
restricted stock is $74,250.

Exhibit 21

Subsidiary of Corning Natural Gas
Holding Corporation

Name

Jurisdiction of Incorporation

Corning Natural Gas Appliance Corporation New York State
Corning Natural Gas Corporation New York State
Pike County Light and Power Pennsylvania
Leatherstocking Gas of New York, Inc New York State

Exhibit 23.1

CONSENT OF INDEPENDENT REGISTERED PUBLIC
ACCOUNTING FIRM

We hereby consent to the incorporation by reference
in the Registration Statements on Form S-3 (Registration No. 333-190348), Form S-8 (Registration No. 333-190348) and Form S-1 (Registration
No. 333-208943) of Corning Natural Gas Holding Corporation of our report dated December 21, 2020 relating to the consolidated financial
statements, which appear in this Form 10-K of Corning Natural Gas Holding Corporation for the year ended September 30, 2020.

Rochester, New York

December 21, 2020

Exhibit 31.1

CERTIFICATION OF PRINCIPAL
EXECUTIVE OFFICER PURSUANT TO

17 CFR SECTION 240.13a-14(a)

I,
Michael I. German, certify that:

1. I have reviewed this annual report on Form 10-K
of Corning Natural Gas Holding Corporation for the fiscal year ended September 30, 2020;

2. Based on my knowledge, this report does not contain
any untrue statement of a material fact or omit material facts necessary to make the statements made, not misleading with respect
to the period covered by this report;

3. Based on my knowledge, the financial statements,
and other financial information included in this report, fairly present in all material respects the financial condition, results
of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer
and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e)
and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the
registrant and have:

a) Designed such disclosure controls and procedures,
or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating
to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during
the period in which this report is being prepared;

b) Designed such internal control over financial
reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable
assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in
accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant’s
disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls
and procedures, as of the end of the period covered by this report based on such evaluation; je

d) Disclosed in this report any change in the registrant’s
internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s
fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect,
the registrant’s internal control over financial reporting; je

5. The registrant’s other certifying officer
and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s
auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses
in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s
ability to record, process, summarize and report financial information; je

b) Any fraud, whether or not material, that involves
management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: December 21, 2020

/s/ Michael I. German

Michael I. German, Chief Executive
Officer and President

(Principal Executive Officer)

Exhibit 31.2

CERTIFICATION OF PRINCIPAL
FINANCIAL OFFICER PURSUANT TO

17 CFR SECTION 240.13a-14(a)

I, Charles Lenns, certify that:

1. I have reviewed this annual report on Form 10-K
of Corning Natural Gas Holding Corporation for the fiscal year ended September 30, 2020;

2. Based on my knowledge, this report does not contain
any untrue statement of a material fact or omit material facts necessary to make the statements made, not misleading with respect
to the period covered by this report;

3. Based on my knowledge, the financial statements,
and other financial information included in this report, fairly present in all material respects the financial condition, results
of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer
and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e)
and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the
registrant and have:

a) Designed such disclosure controls and procedures,
or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating
to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during
the period in which this report is being prepared;

b) Designed such internal control over financial
reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable
assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in
accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant’s
disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls
and procedures, as of the end of the period covered by this report based on such evaluation; je

d) Disclosed in this report any change in the registrant’s
internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s
fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect,
the registrant’s internal control over financial reporting; je

5. The registrant’s other certifying officer
and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s
auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses
in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s
ability to record, process, summarize and report financial information; je

b) Any fraud, whether or not material,
that involves management or other employees who have a significant role in the registrant’s internal control over financial
reporting.

Date: December 21, 2020

/s/ Charles Lenns

Charles Lenns, Chief Financial
Officer and Treasurer

(Principal Financial and
Accounting Officer)

Exhibit 32.1

CERTIFICATION FURNISHED
PURSUANT TO

18 U.S.C. SECTION 1350,
AS ADOPTED PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the filing of the Annual
Report of Corning Natural Gas Holding Corporation (the “Company”) on Form 10-K for the period ending September 30,
2020 (the “Report”) with the Securities and Exchange Commission, I, Michael I. German, Chief Executive Officer and
President of the Company and I, Charles Lenns, Chief Financial Officer and Treasurer of the Company, certify pursuant to 18 U.S.C.
1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that the Report fully complies with the requirements
of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, and the information contained in the Report fairly presents,
in all material respects, the financial condition and the results of operations of the Company for such period.

Dated: December 21, 2020

/s/ MICHAEL I. GERMAN

Michael I. German, Chief Executive Officer and President

(Principal Executive Officer)

/s/ CHARLES LENNS

Charles Lenns, Chief Financial Officer and Treasurer

(Principal Financial and Accounting Officer)