Company: ALTX
Filing Date: 2025-01-31
Form Type: 10-Q
Source: 0001096906-25-000113
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Company: ALTEX INDUSTRIES INC
Filing Date: 2025-01-31
Form: 10-Q
Item: Part I, Item 2
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Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operation.

Financial Condition

The Company used $28,000 cash in operating activities in the three months ended December 31, 2024, and used $13,000 cash in operating activities in the three months ended December 31, 2023. Accrued expenses, related party, $1,235,000 at December 31, 2024, and $1,141,000 at September 30, 2024, are accrued but unpaid salary and bonus, and related accrued payroll tax liability, due to the Company’s president that the Company’s president has elected to defer. The Company’s president may cause the Company to pay the unpaid salary and bonus and payroll tax liability at any time. Pursuant to his employment agreement, the Company’s president may elect to receive unpaid bonus in cash or shares of the Company’s common stock at fair market

The Company is likely to experience negative cash flow from operations unless the Company invests in interests in producing oil and gas wells or in another venture that produces sufficient cash flow from operations. With the exception of capital expenditures related to production acquisitions or drilling or recompletion activities or an investment in another venture that produces cash flow from operations, none of which are currently planned, the cash flows that could result from such acquisitions, activities, or investments, and the possibility of a material change in the current level of interest rates or of oil and gas prices, the Company knows of no trends or demands, commitments, events or uncertainties that will result in or that are reasonably likely to result in the Company's liquidity increasing or decreasing in any material way. Except for cash generated by the operation of the Company's producing oil and gas properties, asset sales, and interest income, the Company has no internal or external sources of liquidity

other than its working capital. At January 31, 2025, the Company had no material commitments for capital expenditures.

Results of Operations

General and administrative expense increased from $50,000 in the three months ended December 31, 2023, to $150,000 in the three months ended December 31, 2024, principally because, during the quarter ended December 31, 2024, the Company recognized bonus expense and related payroll tax liability of $94,000 pursuant to the president’s employment agreement

At the current levels of net oil and gas production, cash balances, interest rates, and oil and gas prices, the Company’s revenue is unlikely to exceed its