Artesian Resources Corp 10-Q for FY2023 Q3

Artesian Resources Corp (ARTNA)

10-Q 2023-11-07 For: 2023-09-30

Added on April 06, 2026

About this 10-Q

Artesian Resources Corp filed this 10-Q on November 7, 2023, covering the quarter ended September 30, 2023 (FY2023 Q3).

Headline figures

Quarter ended September 30, 2023, as reported in this filing, compared with the same period a year earlier where the filing states it.

Revenue: $26.57M; unchanged from $26.58M a year earlier
Net income: $5.07M; down 17.5% from net income of $6.14M a year earlier
Diluted EPS: $0.49; down 24.6% from $0.65 a year earlier

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Delaware	51-0002090
--------------------------------------------------------------------	-------------------------------------------------
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification Number)

Securities registered pursuant to Section 12(b) of the Act:
Title of each class	Trading Symbol (s)	Name of each exchange on which registered
Common Stock	ARTNA	The Nasdaq Stock Market

Part I	-	Financial Information:

Item 1	-	Financial Statements	Page(s)

		Condensed Consolidated Balance Sheets as of September 30, 2023 and December 31, 2022 (unaudited)	3

		Condensed Consolidated Statements of Operations for the three and nine months ended September 30, 2023 and 2022 (unaudited)	4

		Condensed Consolidated Statements of Cash Flows for the nine months ended September 30, 2023 and 2022 (unaudited)	5 - 6

		Condensed Consolidated Statements of Changes in Stockholders’ Equity for the three and nine months periods ended September 30, 2023 and 2022 (unaudited)	7 - 8

		Notes to the Condensed Consolidated Financial Statements	9 - 26

Item 2	-	Management's Discussion and Analysis of Financial Condition and Results of Operations	26 - 35

Item 3	-	Quantitative and Qualitative Disclosures about Market Risk	36

Item 4	-	Controls and Procedures	36

Part II	-	Other Information	36

Item 1	-	Legal Proceedings	36

Item 1A	-	Risk Factors	36

Item 2	-	Unregistered Sales of Equity Securities, Use of Proceeds, and Issuer Purchases of Equity Securities	37

Item 3		Defaults Upon Senior Securities	37

Item 4		Mine Safety Disclosures	37

Item 5		Other Information	37

Item 6	-	Exhibits	38
-
Signatures

ASSETS	September 30, 2023		December 31, 2022
Utility plant, at original cost (less accumulated depreciation - 2023 - $181,235; 2022 - $172,954)	$	705,949	$	668,031
Current assets
Cash and cash equivalents		6,458		1,309
Accounts and other receivables (less provision for expected credit loss - 2023 - $356; 2022 - $416)		10,488		13,511
Income tax receivable		2,908		1,632
Unbilled operating revenues		1,946		1,586
Materials and supplies		5,487		4,702
Prepaid property taxes		3,374		2,186
Prepaid expenses and other		3,285		2,878
Total current assets		33,946		27,804
Other assets
Non-utility property (less accumulated depreciation - 2023 - $1,040; 2022 - $990)		3,708		3,740
Other deferred assets		8,506		10,536
Goodwill		1,939		1,939
Operating lease right of use assets		498		467
Total other assets		14,651		16,682
Regulatory assets, net		7,265		7,274
Total Assets	$	761,811	$	719,791

LIABILITIES AND STOCKHOLDERS' EQUITY
Stockholders' equity
Common stock	$	10,277	$	9,502
Preferred stock		—		—
Additional paid-in capital		143,076		107,143
Retained earnings		76,240		71,286
Total stockholders' equity		229,593		187,931
Long-term debt, net of current portion		175,875		175,619
		405,468		363,550
Current liabilities
Lines of credit		—		20,174
Current portion of long-term debt		2,219		2,003
Accounts payable		8,430		10,929
Accrued expenses		4,638		4,246
Overdraft payable		5,052		43
Accrued interest		1,833		989
Income taxes payable		25		6
Customer and other deposits		2,749		2,489
Other		2,230		3,190
Total current liabilities		27,176		44,069

Commitments and contingencies

Deferred credits and other liabilities
Net advances for construction		3,258		3,686
Operating lease liabilities		492		466
Regulatory liabilities		25,827		28,721
Deferred investment tax credits		427		439
Deferred income taxes		58,229		54,552
Total deferred credits and other liabilities		88,233		87,864

Net contributions in aid of construction		240,934		224,308
Total Liabilities and Stockholders’ Equity	$	761,811	$	719,791

	For the Three Months Ended September 30,						For the Nine Months Ended September 30,
	2023			2022			2023		2022
Operating revenues
Water sales	$	21,642		$	21,702		$	60,294	$	59,567
Other utility operating revenue		3,235			2,841			9,083		8,281
Non-utility operating revenue		1,693			2,039			4,940		5,932
Total Operating Revenues		26,570			26,582			74,317		73,780

Operating expenses
Utility operating expenses		11,590			10,428			34,488		30,994
Non-utility operating expenses		1,122			1,570			3,328		4,418
Depreciation and amortization		3,444			3,210			9,882		9,350
State and federal income taxes		2,249			1,834			5,156		4,978
Property and other taxes		1,504			1,458			4,531		4,371
Total Operating Expenses		19,909			18,500			57,385		54,111

Operating income		6,661			8,082			16,932		19,669

Other income, net
Allowance for funds used during construction (AFUDC)		647			393			1,693		898
Miscellaneous (expense) income		(35	)		(101	)		1,554		1,311

Income before interest charges		7,273			8,374			20,179		21,878

Interest charges		2,202			2,230			6,960		6,205

Net income applicable to common stock	$	5,071		$	6,144		$	13,219	$	15,673

Income per common share:
Basic	$	0.49		$	0.65		$	1.33	$	1.66
Diluted	$	0.49		$	0.65		$	1.33	$	1.65

Weighted average common shares outstanding:
Basic		10,276			9,477			9,929		9,451
Diluted		10,279			9,492			9,933		9,473

Cash dividends per share of common stock	$	0.2840		$	0.2729		$	0.8464	$	0.8133

	For the Nine Months Ended September 30,
	2023			2022
CASH FLOWS FROM OPERATING ACTIVITIES
Net income	$	13,219		$	15,673
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		9,882			9,350
Deferred income taxes, net		3,665			1,582
Stock compensation		185			162
AFUDC, equity portion		(1,040	)		(612	)

Changes in assets and liabilities, net of acquisitions:
Accounts and other receivables, net of provision for expected credit loss		3,023			(3,402	)
Income tax receivable		(1,276	)		1,401
Unbilled operating revenues		(360	)		(547	)
Materials and supplies		(785	)		(572	)
Income tax payable		19			1,096
Prepaid property taxes		(1,188	)		(138	)
Prepaid expenses and other		(407	)		(62	)
Other deferred assets		2,004			(5,477	)
Regulatory assets		(76	)		280
Regulatory liabilities		(2,988	)		9,651
Accounts payable		(829	)		(4,086	)
Accrued expenses		156			(791	)
Accrued interest		844			445
Deposits and other		(688	)		1,097
NET CASH PROVIDED BY OPERATING ACTIVITIES		23,360			25,050

CASH FLOWS FROM INVESTING ACTIVITIES
Capital expenditures (net of AFUDC, equity portion)		(48,838	)		(36,660	)
Investment in acquisitions, net of cash acquired		—			(6,341	)
Proceeds from sale of assets		76			49
NET CASH USED IN INVESTING ACTIVITIES		(48,762	)		(42,952	)

CASH FLOWS FROM FINANCING ACTIVITIES
Net (repayments) under lines of credit agreements		(20,174	)		(17,303	)
Increase in overdraft payable		5,009			99
Net advances and contributions in aid of construction		16,986			11,576
Net proceeds from issuance of common stock		36,840			1,705
Issuance of long-term debt		1,978			30,828
Equity issuance costs		(317	)		—
Dividends paid		(8,265	)		(7,677	)
Deferred debt issuance costs		—			(120	)
Principal repayments of long-term debt		(1,506	)		(1,190	)
NET CASH PROVIDED BY FINANCING ACTIVITIES		30,551			17,918

NET INCREASE IN CASH AND CASH EQUIVALENTS		5,149			16

CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR		1,309			92

CASH AND CASH EQUIVALENTS AT END OF PERIOD	$	6,458		$	108

Non-cash Investing and Financing Activity:
Utility plant received as construction advances and contributions	$	2,307	$	4,407
Change in amounts included in accounts payable, accrued payables and other related to capital expenditures		1,451		1,574

Supplemental Disclosures of Cash Flow Information:
Interest paid	$	6,116	$	5,760
Income taxes paid	$	3,476	$	1,431


Purchase price allocation of investment in acquisitions:
Utility plant	$	—	$	34,234
Cash		—		280
Goodwill		—		2,983
Other assets		—		1,033
Total assets		—		38,530
Less:
Liabilities		—		3,852
Future contractual obligation payable to seller		—		1,569
Contributions in aid of construction		—		26,488
Cash paid for acquisitions		—		6,621
Cash received from acquisitions		—		280
Net cash paid for acquisitions	$	—	$	6,341

	Common Shares Outstanding Class A Non-Voting (1) (3) (4)		Common Shares Outstanding Class B Voting (2)		$1 Par Value Class A Non-Voting		$1 Par Value Class B Voting		Additional Paid-in Capital		Retained Earnings			Total

Balance as of December 31, 2021		8,532		881	$	8,532	$	881	$	104,989	$	63,607		$	178,009
Net income		—		—		—		—		—		4,483			4,483
Cash dividends declared
Common stock		—		—		—		—		—		(2,518	)		(2,518	)
Issuance of common stock
Dividend reinvestment plan		2		—		2		—		87		—			89
Employee stock options and awards(4)		23		—		23		—		475		—			498
Employee Retirement Plan(3)		—		—		—		—		—		—			—
Balance as of March 31, 2022		8,557		881		8,557		881		105,551		65,572			180,561
Net income		—		—		—		—		—		5,046			5,046
Cash dividends declared
Common stock		—		—		—		—		—		(5,159	)		(5,159	)
Issuance of common stock
Dividend reinvestment plan		2		—		2		—		97		—			99
Employee stock options and awards(4)		19		—		19		—		336		—			355
Employee Retirement Plan(3)		—		—		—		—		—		—			—
Balance as of June 30, 2022		8,578		881		8,578		881		105,984		65,459			180,902
Net income		—		—		—		—		—		6,144			6,144
Cash dividends declared
Common stock		—		—		—		—		—		—			—
Issuance of common stock
Dividend reinvestment plan		2		—		2		—		87		—			89
Employee stock options and awards(4)		30		—		30		—		708		—			738
Employee Retirement Plan(3)		—		—		—		—		—		—			—
Balance as of September 30, 2022		8,610		881		8,610		881		106,779		71,603			187,873

(in thousands)	Three months ended September 30, 2023		Three months ended September 30, 2022		Nine months ended September 30, 2023		Nine months ended September 30, 2022
Tariff Revenue
Consumption charges	$	13,681	$	13,927	$	37,064	$	36,676
Fixed fees		8,299		7,924		24,365		23,452
Service charges		169		156		523		449
DSIC		1,403		1,406		3,922		3,870
Metered wastewater services		183		193		435		462
Industrial wastewater services		537		467		1,384		1,295
Total Tariff Revenue	$	24,272	$	24,073	$	67,693	$	66,204

Non-Tariff Revenue
Service line protection plans	$	1,441	$	1,224	$	4,176	$	3,662
Contract operations		272		238		793		691
Design and installation		28		621		150		1,723
Inspection fees		138		127		325		234
Total Non-Tariff Revenue	$	1,879	$	2,210	$	5,444	$	6,310
Other Operating Revenue	$	419	$	299	$	1,180	$	1,266
Total Operating Revenue	$	26,570	$	26,582	$	74,317	$	73,780

	September 30,		December 31,		December 31,
(in thousands)	2023		2022		2021

Customer accounts receivable – water	$	6,246	$	5,981	$	5,986
Customer accounts receivable – wastewater		552		482		1,326
Settlement agreement receivable – short term		2,516		2,532		—
Miscellaneous accounts receivable		832		3,781		786
Developer receivable		698		1,151		698
		10,844		13,927		8,796
Less: provision for expected credit loss		356		416		429
Net accounts receivable	$	10,488	$	13,511	$	8,367

	(in thousands)
	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2023		2022		2023		2022

Minimum rentals	$	4	$	21	$	11	$	30
Contingent rentals		—		—		—		—

	$	4	$	21	$	11	$	30

	(in thousands, except lease term and discount rate)
	September 30, 2023			December 31, 2022

Operating Leases:
Operating lease right-of-use assets	$	498		$	467

Other current liabilities	$	9			2
Operating lease liabilities		492			466
Total operating lease liabilities	$	501		$	468


Weighted Average Remaining Lease Term
Operating leases	57 years			61 years
Weighted Average Discount Rate
Operating leases		5.0	%		5.0	%

	(in thousands)
	Operating Leases
Year
2024	$	34
2025		34
2026		34
2027		34
2028		31
Thereafter		1,401
Total undiscounted lease payments	$	1,568
Less effects of discounting		(1,067	)
Total lease liabilities recognized	$	501

	Options								Restricted Awards
	Option Shares		Weighted Average Exercise Price		Weighted Average Remaining Life (Yrs.)		Aggregate Intrinsic Value (in thousands)		Outstanding Restricted Stock Awards			Weighted Average Grant Date FairValue
Plan options/restricted stock awards
Outstanding at January 1, 2023		6,750	$	21.86			$	248		5,000		$	45.58
Granted		—		—				—		5,000			54.88
Exercised/vested and released		—		—				—		(5,000	)		45.58
Expired/cancelled		—		—				—		—			—
Outstanding at September 30, 2023		6,750	$	21.86		0.602	$	136		5,000		$	54.88

Exercisable/vested at September 30, 2023		6,750	$	21.86		0.602	$	136		—			—

Expense	Years Amortized
Deferred contract costs and other	5
Rate case studies	5
Delaware rate proceedings	2.5
Maryland rate proceedings	5
Debt related costs	15 to 30 (based on term of related debt)
Deferred costs affiliated interest agreement	20
Goodwill (resulting from acquisition of Mountain Hill Water Company in 2008)	50
Deferred acquisition costs (resulting from purchase of water assets in Cecil County, Maryland in 2011 and Port Deposit, Maryland in 2010)	20
Franchise Costs (resulting from purchase of water assets in Cecil County, Maryland in 2011)	80

Application Date	11/20/20
DEPSC Approval Date	12/14/20
Effective Date	01/01/21
Cumulative DSIC Rate	7.50%
Net Eligible Plant Improvements – Cumulative Dollars (in millions)	$43.1
Eligible Plant Improvements – Installed Beginning Date	10/01/2014
Eligible Plant Improvements – Installed Ending Date	04/30/2019

(in thousands)
	September 30, 2023		December 31, 2022
Carrying amount	$	178,094	$	177,622
Estimated fair value	$	148,652	$	155,425

Regulatory assets, net of amortization, comprise:
	(in thousands)
	September 30, 2023		December 31, 2022

Deferred contract costs and other	$	221	$	227
Rate case studies		138		57
Rate proceedings		222		—
Deferred income taxes		449		465
Debt related costs		4,416		4,682
Deferred costs affiliated interest agreement		1,124		1,114
Goodwill		260		266
Deferred acquisition and franchise costs		435		463
	$	7,265	$	7,274

Regulatory liabilities comprise:
	(in thousands)
	September 30, 2023		December 31, 2022

Utility plant retirement cost obligation	$	—	$	—
Deferred settlement refunds		4,991		7,487
Deferred income taxes (related to TCJA)		20,836		21,234
	$	25,827	$	28,721

	For the Three Months Ended September 30,				For the Nine Months Ended September 30,
	2023		2022		2023		2022
	(in thousands)
Weighted average common shares outstanding during the period for basic computation		10,276		9,477		9,929		9,451
Dilutive effect of employee stock options and awards		3		15		4		22

Weighted average common shares outstanding during the period for diluted computation		10,279		9,492		9,933		9,473

(in thousands)
		TESI
	Utility plant	$	25,354
	Cash		280
	Goodwill		1,939
	Other assets		1,033
	Total assets		28,606
	Less: Liabilities and contributions in aid of construction (CIAC)
	Liabilities		2,808
	CIAC		22,676
	Net cash purchase price	$	3,122

(in thousands)
	Three Months Ended September 30,						Nine Months Ended September 30,
	2023			2022			2023			2022
Revenues:
Regulated Utility	$	24,877		$	24,541		$	69,377		$	67,846
Other (non-utility)		1,747			2,074			5,101			6,034
Inter-segment elimination		(54	)		(33	)		(161	)		(100	)
Consolidated Revenues	$	26,570		$	26,582		$	74,317		$	73,780

Operating Income:
Regulated Utility	$	6,387		$	7,784		$	16,104		$	18,647
Other (non-utility)		274			298			828			1,022
Consolidated Operating Income	$	6,661		$	8,082		$	16,932		$	19,669

Income Taxes:
Regulated Utility	$	1,929		$	1,657		$	4,300		$	4,470
Other (non-utility)		320			177			856			508
Consolidated Income Taxes	$	2,249		$	1,834		$	5,156		$	4,978

	September 30, 2023		December 31, 2022
Assets:
Regulated Utility	$	749,834	$	713,113
Other (non-utility)		11,977		6,678
Consolidated Assets	$	761,811	$	719,791

Material Cash Requirements	Payments Due by Period
In thousands	Less than 1 Year		1-3 Years		4-5 Years		After 5 Years		Total
First mortgage bonds (principal and interest)	$	7,902	$	15,714	$	40,610	$	204,564	$	268,790
State revolving fund loans (principal and interest)		964		1,906		1,704		7,636		12,210
Promissory note (principal and interest)		960		1,923		1,924		9,893		14,700
Asset purchase contractual obligation (principal and interest)		339		659		320		---		1,318
Lines of credit		---		---		---		---		---
Operating leases		34		68		65		1,401		1,568
Operating agreements		76		112		109		749		1,046
Unconditional purchase obligations		812		1,539		194		---		2,545
Tank painting contractual obligation		626		470		---		---		1,096
Total contractual cash obligations	$	11,713	$	22,391	$	44,926	$	224,243	$	303,273

Exhibit No.	Description

3.1	Amended and Restated By-laws of Artesian Resources Corporation incorporated by reference to Exhibit 3.1 filed with the Company’s Form 8-K filed on November 23, 2020.
3.2	Restated Certificate of Incorporation of the Company effective April 28, 2004 incorporated by reference to Exhibit 3.1 filed with the Company’s Form 10-Q for the quarterly period ended March 31, 2004.

10.1	Amended and Restated Demand Line of Credit Agreement between Artesian Resources Corporation, and Citizens Bank, N.A. dated August 3, 2023. *

31.1	Certification of Chief Executive Officer of the Registrant required by Rule 13a–14(a) under the Securities Exchange Act of 1934, as amended.*

31.2	Certification of Chief Financial Officer of the Registrant required by Rule 13a–14(a) under the Securities Exchange Act of 1934, as amended.*

32	Certification of Chief Executive Officer and Chief Financial Officer required by Rule 13a-14(b) under the Securities Exchange Act of 1934, as amended and Section 1350 of Chapter 63 of Title 18 of the United States Code (18 U.S.C. Section 1350).**

101.BAL	Inline XBRL Condensed Consolidated Balance Sheets (unaudited)*
101.OPS	Inline XBRL Condensed Consolidated Statements of Operations (unaudited)*

101.CSH	Inline XBRL Condensed Consolidated Statements of Cash Flows (unaudited)*

101.NTS	Inline XBRL Notes to the Condensed Consolidated Financial Statements (unaudited)*

104	The cover page from Artesian Resources Corporation’s Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2023, formatted in Inline XBRL (contained in exhibit 101).*

Date: November 7, 2023	By:	/s/ DIAN C. TAYLOR
		Dian C. Taylor (Principal Executive Officer)

Date: November 7, 2023	By:	/s/ DAVID B. SPACHT
		David B. Spacht (Principal Financial Officer)

Exhibit 31.1
Certification of Chief Executive Officer of Artesian Resources Corporation required by Rule 13a – 14 (a) under the Securities Act of 1934, as amended

I, Dian C. Taylor, certify that:

1.	I have reviewed this Quarterly Report on Form 10-Q for the period ended September 30, 2023 of Artesian Resources Corporation;

2.	Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were 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(s) 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; and
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 annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5.	The registrant's other certifying officer(s) 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 that are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and
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: November 7, 2023			/s/ DIAN C. TAYLOR
			Dian C. Taylor
			Chief Executive Officer (Principal Executive Officer)

Exhibit 31.2

Certification of Chief Financial Officer of Artesian Resources Corporation required by Rule 13a – 14 (a) under the Securities Act of 1934, as amended

I, David B. Spacht, certify that:

1.	I have reviewed this Quarterly Report on Form 10-Q for the period ended September 30, 2023 of Artesian Resources Corporation;

2.	Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were 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(s) 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; and
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; and

5.	The registrant's other certifying officer(s) 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 that are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and
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: November 7, 2023			/s/ DAVID B. SPACHT
			David B. Spacht
			Chief Financial Officer (Principal Financial Officer)

Exhibit 32


Certification of Chief Executive Officer and Chief Financial Officer pursuant to 18 U.S.C. Section 1350


I, Dian C. Taylor, Chief Executive Officer, and David B. Spacht, Chief Financial Officer, of Artesian Resources Corporation, a Delaware corporation (the "Company"), hereby certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that, based on our knowledge:

(1)	The Company's Quarterly Report on Form 10-Q for the period ended September 30, 2023 (the " Report") fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 (15 U.S.C. Section 78m(a) or Section 78o(d)), as amended; and

(2)	The information contained in the Report fairly presents, in all material respects, the financial condition of the Company at the end of the period covered by the Report and results of operations of the Company for the period covered by the Report.




Date: November 7, 2023

CHIEF EXECUTIVE OFFICER:		CHIEF FINANCIAL OFFICER:


/s/ DIAN C. TAYLOR		/s/ DAVID B. SPACHT
Dian C. Taylor		David B. Spacht



These certifications accompany the Report to which they relate, are not deemed filed with the Securities and Exchange Commission and are not to be incorporated by reference into any filing of the Company under the Securities Act of 1933, as amended, or the Securities Exchange Act of 1934, as amended (whether made before or after the date of the Report), irrespective of any general incorporation language contained in such filing.