Company: ALTX
Filing Date: 2025-08-08
Form Type: 10-Q
Source: 0001096906-25-001261
Chunk: 4

Company: ALTEX INDUSTRIES INC
Filing Date: 2025-08-08
Form: 10-Q
Item: Part I, Item 2
Chunk 4
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Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operation.

Financial Condition

Effective April 1, 2024, the Company sold certain oil, gas, and mineral interests in Utah for $525,000 cash. As the Company had a zero-dollar basis in the interests sold, the $525,000 was recorded as a gain on sale of assets. The Company used $78,000 cash in operating activities in the nine months ended June 30, 2025, and used $68,000 cash in operating activities in the nine months ended June 30, 2024. Effective February 15, 2025, the Company entered into an extension of its office lease, resulting in the recognition of its right-of-use asset and corresponding lease liability in the amount of $166,000, respectively. At June 30, 2025, $1,235,000 of accrued expense is 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. At September 30, 2024, $1,141,000 of accrued expense is 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.

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 August 8, 2025, the Company had no material commitments for capital expenditures.

Results of Operations

General and administrative expense increased from $171,000 in the nine