Company: ALTX
Filing Date: 2025-11-28
Form Type: 10-K
Source: 0001096906-25-001949
Chunk: 1

Company: ALTEX INDUSTRIES INC
Filing Date: 2025-11-28
Form: 10-K
Item: Item 7
Chunk 1
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Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations

Financial Condition

In FY25 operating activities used $99,000 cash, and the Company used $12,000 cash to acquire 41,880 shares of its common stock. In FY24 operating activities used $78,000 cash, and the Company used $23,000 to acquire 118,501 shares of its common stock. In FY24 the Company sold certain oil, gas, and mineral interests in Utah for $525,000 cash. Consequently, cash balances decreased $111,000 in FY25 and increased $424,000 in FY24. At September 30, 2025, accrued expenses, related party, of $1,235,000 consists of $1,175,000 in salary and bonus payable to the Company’s president, pursuant to his employment agreement, that the president has elected to defer, as well as $60,000 in related accrued payroll tax. At September 30, 2024, accrued expenses, related party, of $1,141,000 consists of $1,087,000 in salary and bonus payable to the Company’s president, pursuant to his employment agreement, that the president has elected to defer, as well as $54,000 in related accrued payroll tax. The Company’s president may require the Company to pay the unpaid salary 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 November 28, 2025, the Company had no material commitments for capital expenditures.

Results of Operations

General and administrative expense increased from $233,000 in FY24 to $320