Altex Industries (ALTX) logs modest loss, relies on cash and deferred pay

Rhea-AI Filing Summary

Altex Industries, Inc. reported a small loss and continued cash burn for the quarter and six months ended March 31, 2026. For the quarter, revenue from oil and gas sales was only $4,000 against operating expenses of $72,000, partly offset by $21,000 of interest income, resulting in a net loss of $47,000.

For the six-month period, revenue totaled $11,000 and other income $46,000, versus operating expenses of $134,000, leading to a net loss of $77,000 and operating cash use of $67,000. Cash and cash equivalents were $2,478,000 and total assets $2,651,000, while a significant related-party accrual of $1,235,000 is owed to the president and may be called for payment at any time.

Management notes that at current production, cash balances, interest rates, and oil and gas prices, revenue is unlikely to exceed expenses, and the company expects continued net losses unless it invests in producing oil and gas interests or other cash-generating ventures. The company states that climate change regulations are not expected to have a material impact and that its disclosure controls and procedures are considered effective.

Insights

Small-cap energy and liquidity analyst

Altex runs modest losses, relies on cash reserves, and carries a large related-party accrual.

Altex Industries shows a lean operating profile with limited oil and gas revenue of $11,000 over six months and net loss of $77,000. Cash usage from operations was $67,000, leaving cash of $2,478,000 and total assets of $2,651,000 as of March 31, 2026.

A key feature is accrued expenses, related party of $1,235,000, representing deferred salary, bonus, and payroll taxes owed to the president. The agreement allows him to demand payment at any time or take bonus in shares, so this liability could reduce cash quickly if exercised.

Management explicitly states that at current production and interest rate levels, revenue is unlikely to exceed expenses and that net losses are likely to continue unless cash is invested in producing wells or other ventures that generate sufficient income. Future filings will clarify whether the company undertakes such investments or continues to draw down its cash balance.

Key Figures

Cash and cash equivalents: $2,478,000 Total assets: $2,651,000 Accrued expenses, related party: $1,235,000 +5 more

8 metrics

Cash and cash equivalents $2,478,000 As of March 31, 2026

Total assets $2,651,000 As of March 31, 2026

Accrued expenses, related party $1,235,000 Deferred compensation owed to president as of March 31, 2026

Six-month revenue $11,000 Oil and gas sales for six months ended March 31, 2026

Six-month net loss $77,000 For six months ended March 31, 2026

Operating cash outflow $67,000 Net cash used in operating activities for six months ended March 31, 2026

General and administrative expense $132,000 Six months ended March 31, 2026

Interest income $46,000 Six months ended March 31, 2026

Key Terms

successful efforts method, Right-of-Use Asset, accrued expenses, related party, SAFE HARBOR, +1 more

5 terms

successful efforts method financial

"Proved oil and gas properties (successful efforts method)"

An accounting approach used mainly in oil and gas exploration where companies treat costs for failed exploration as immediate expenses while only keeping successful well and development costs as assets on the balance sheet. For investors, this matters because it makes a company’s profits and asset totals more sensitive to exploration results—like a shopper who throws out broken prototypes but shelves the ones that work—so earnings and book value can swing more sharply depending on drilling outcomes.

Right-of-Use Asset financial

"Right-of-Use Asset | | 140,000 | | 154,000"

A right-of-use asset is the value a company records on its balance sheet for the practical use of something it leases — like the benefit of living in a rented office or using leased equipment for a set period. Investors care because it turns many leases into on-balance-sheet assets and matching liabilities, which can change reported leverage, asset base and performance metrics much like taking on a loan would.

accrued expenses, related party financial

"Accrued expenses, related party | | 1,235,000 | | 1,235,000"

SAFE HARBOR regulatory

"“SAFE HARBOR” STATEMENT UNDER THE UNITED STATES PRIVATE SECURITIES LITIGATION REFORM ACT"

Safe harbor is a rule that protects companies or individuals from legal trouble if they follow certain guidelines or procedures. It’s like having a safety net that allows them to act without fear of punishment, as long as they stick to the rules. This helps encourage honest behavior and clear standards in financial and legal activities.

disclosure controls and procedures regulatory

"The Company maintains disclosure controls and procedures that are designed to ensure that information required"

Policies, routines and internal checks a public company uses to identify, collect and verify information that must appear in its financial reports and public filings, and to make sure that material news is disclosed accurately and on time. Investors care because effective controls increase confidence that the company’s reported numbers and disclosures are reliable and reduce the risk of surprises, much like a building’s inspection and alarm system helps occupants trust the structure’s safety.

10-Q Quarterly Reports: What Changes Quarter to Quarter →

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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

☒QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 

For the quarterly period ended March 31, 2026

☐TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 

For the transition period from         to        .

Commission file number 1-9030

ALTEX INDUSTRIES, INC.

(Exact name of registrant as specified in its charter)

Delaware		84-0989164
(State or other jurisdiction of		(I.R.S. Employer
incorporation or organization)		Identification No.)

700 Colorado Blvd #273 Denver CO 80206

(Address of principal executive offices) (Zip Code)

(303) 265-9312

(Registrant's telephone number, including area code)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes x No ¨

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes x No ¨

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a small reporting company, or an emerging growth company.

Large accelerated filer ¨	Accelerated filer ¨
Non-accelerated filer ¨	Smaller reporting company ☒
	Emerging growth company ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No x

Number of shares outstanding of issuer's Common Stock as of May 1, 2026: 11,187,640

PART I - FINANCIAL INFORMATION

Item 1. Financial Statements

ALTEX INDUSTRIES, INC.

Condensed Consolidated Balance Sheets

		(Unaudited)
		March 31		September 30
		2026		2025
Assets
Current assets
Cash and cash equivalents		$2,478,000		$2,545,000
Accounts receivable		3,000		1,000
Other		8,000		22,000
Total current assets		2,489,000		2,568,000
Property and equipment, at cost
Proved oil and gas properties (successful efforts method)		300,000		300,000
Less accumulated depreciation, depletion, and amortization		(278,000)		(277,000)
Net property and equipment		22,000		23,000
Right-of-Use Asset		140,000		154,000
Total assets		2,651,000		$2,745,000
Liabilities and Stockholders’ Equity
Current liabilities
Accounts payable		$2,000		$7,000
Operating lease liability		27,000		26,000
Accrued expenses, related party		1,235,000		1,235,000
Other accrued expenses		9,000		8,000
Total current liabilities		1,273,000		1,276,000
Long-term operating lease liability		113,000		127,000
Total Liabilities		1,386,000		1,403,000
Commitments and Contingencies		-		-
Stockholders’ equity
Preferred stock, $0.01 par value. Authorized 5,000,000 shares, none issued		-		-
Common stock, $0.01 par value. Authorized 50,000,000 shares; issued and outstanding, 11,187,640, at September 30, 2025, and March 31, 2026		112,000		112,000
Additional paid-in capital		13,682,000		13,682,000
Accumulated deficit		(12,529,000)		(12,452,000)
Total stockholders' equity		1,265,000		1,342,000
Total liabilities and stockholders' equity		$2,651,000		$2,745,000

See notes to unaudited condensed consolidated financial statements

ALTEX INDUSTRIES, INC.

Condensed Consolidated Statements of Operations

(Unaudited)

		Three Months Ended March 31					Six Months Ended March 31
		2026		2025			2026		2025
Revenue
Oil and gas sales		$4,000		$4,000			$11,000		$9,000
Total revenue		4,000		4,000			11,000		9,000
Operating expense
Production taxes		-		1,000			1,000		1,000
General and administrative		72,000		61,000			132,000		211,000
Depreciation, depletion, and amortization		-		1,000			1,000		2,000
Total operating expense		72,000		63,000			134,000		214,000
Other income
Interest income		21,000		27,000			46,000		57,000
Total other income		21,000		27,000			46,000		57,000
Net loss		$(47,000)		$(32,000)			$(77,000)		$(148,000)
Basic and diluted loss per share		$(0.00)		$(0.00)			$(0.01)		$(0.01)
Basic and diluted weighted average shares outstanding		11,187,640		11,229,520			11,187,640		11,229,520

See notes to unaudited condensed consolidated financial statements

ALTEX INDUSTRIES, INC.

Condensed Consolidated Statements of Cash Flows

(Unaudited)

		Six months ended March 31
		2026		2025
Cash flows used in operating activities
Net loss		$(77,000)		$(148,000)
Adjustments to reconcile net loss to net cash used in operating activities
Depreciation, depletion, and amortization		1,000		2,000
Changes in assets and liabilitites
Increase in accounts receivable		(2,000)		-
Decrease in other current assets		14,000		14,000
Decrease in accounts payable		(5,000)		(3,000)
Increase in other accrued expenses		1,000		87,000
Operating lease		1,000		(1,000)
Net cash used in operating activities		(67,000)		(49,000)
Cash flows from investing activitites		-		-
Cash flows from financing activities		-		-
Net decrease in cash and cash equivalents		(67,000)		(49,000)
Cash and cash equivalents at beginning of period		2,545,000		2,656,000
Cash and cash equivalents at end of period		$2,478,000		$2,607,000
Noncash Investing and Financing Activities
Recognition of right-of-use asset and operating lease liability		$-		$183,000

See notes to unaudited condensed consolidated financial statements

ALTEX INDUSTRIES, INC.

Condensed Consolidated Statements of Stockholders' Equity

(Unaudited)

For the six months ended March 31, 2026	Common Stock		Additional paid-	Accumulated	Total stockholders'
	Shares	Amount	in capital	deficit	equity
Balance at September 30, 2025	11,187,640	$112,000	$13,682,000	$(12,452,000)	$1,342,000
Net loss				(77,000)	(77,000)
Balance at March 31, 2026	11,187,640	$112,000	$13,682,000	$(12,529,000)	$1,265,000

For the three months ended March 31, 2026	Common Stock		Additional paid-	Accumulated	Total stockholders'
	Shares	Amount	in capital	deficit	equity
Balance at December 31, 2025	11,187,640	$112,000	$13,682,000	$(12,482,000)	$1,312,000
Net loss				(47,000)	(47,000)
Balance at March 31, 2026	11,187,640	$112,000	$13,682,000	$(12,529,000)	$1,265,000

For the six months ended March 31, 2025	Common Stock		Additional paid-	Accumulated	Total stockholders'
	Shares	Amount	in capital	deficit	equity
Balance at September 30, 2024	11,229,520	$113,000	$13,693,000	$(12,260,000)	$1,546,000
Net loss				(148,000)	(148,000)
Balance at March 31, 2025	11,229,520	$113,000	$13,693,000	$(12,408,000)	$1,398,000

For the three months ended March 31, 2025	Common Stock		Additional paid-	Accumulated	Total stockholders'
	Shares	Amount	in capital	deficit	equity
Balance at December 31, 2024	11,229,520	$113,000	$13,693,000	$(12,376,000)	$1,430,000
Net loss				(32,000)	(32,000)
Balance at March 31, 2025	11,229,520	$113,000	$13,693,000	$(12,408,000)	$1,398,000

See notes to unaudited condensed consolidated financial statements

ALTEX INDUSTRIES, INC. AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements

(Unaudited)

Note 1 - Basis of Presentation. The accompanying unaudited, consolidated, condensed financial statements have been prepared in accordance with U.S. GAAP for interim financial information, the instructions to Form 10-Q, and Article 10 of Regulation S-X. In the opinion of management, the accompanying unaudited, consolidated, condensed financial statements contain all adjustments necessary to present fairly the financial position of the Company as of March 31, 2026, and the cash flows and results of operations for the three andsix months then ended. Such adjustments consisted only of normal recurring items. The results of operations for the six months ended March 31 are not necessarily indicative of the results for the full year. As of March 31, 2026, there were no potentially dilutive shares for the Company. Certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted. The accounting policies followed by the Company are set forth in Note 1 to the Company's consolidated financial statements contained in the Company's 2025 Annual Report on Form 10-K, and it is suggested that these condensed, consolidated financial statements be read in conjunction therewith.

“SAFE HARBOR” STATEMENT UNDER THE

UNITED STATES PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995

Statements that are not historical facts contained in this Form 10-Q are forward-looking statements that involve risks and uncertainties that could cause actual results to differ from projected results. Factors that could cause actual results to differ materially include, among others: general economic conditions; movements in interest rates; the market price of oil and natural gas; the risks associated with exploration and production of oil and gas; the Company's ability, or the ability of its operating subsidiary, Altex Oil Corporation ("AOC"), to find, acquire, market, develop, and produce new properties; operating hazards attendant to the oil and natural gas business; uncertainties in the estimation of proved reserves and in the projection of future rates of production and timing of development expenditures; the strength and financial resources of the Company's competitors; the Company's ability and AOC's ability to find and retain skilled personnel; climatic conditions; availability and cost of material and equipment; delays in anticipated start-up dates; environmental risks; the results of financing efforts; and other uncertainties detailed elsewhere herein and in the Company’s filings with the Securities and Exchange Commission.

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operation.

Financial Condition

The Company used $67,000 and $49,000 cash in operating activities in the six months ended March 31, 2026 and 2025, respectively. Accrued expenses, related party, $1,235,000 at March 31, 2026, and September 30, 2025, 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 May 1, 2026, the Company had no material commitments for capital expenditures.

Results of Operations

General and administrative expense decreased from $211,000 in the six months ended March 31, 2025, to $132,000 in the six months ended March 31, 2026, 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. General and administrative expense increased from $61,000 in the three months ended March 31, 2025, to $72,000 in the three months ended March 31, 2026, because of increased medical insurance premiums, audit fees, legal fees, office rent, and state franchise taxes. Interest income decreased from $57,000 in the six months ended March 31, 2025, to $46,000 in the six months ended March 31, 2026, and from $27,000 in the three months ended March 31, 2026, to $21,000 in the three months ended March 31, 2026, principally because of lower interest rates on cash balances.   

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 expenses. Unless the Company invests a substantial portion of its cash balances in interests in producing oil and gas wells or in one or more other ventures that produce revenue and net income, the Company is likely to experience net losses. With the exception of unanticipated asset retirement obligations, unanticipated environmental expense, and possible changes in interest rates and oil and gas prices, the Company is not aware of any other trends, events, or uncertainties that have had or that are reasonably expected to have a material impact on net sales or revenues or income from continuing operations.

Climate Change

The company does not believe that climate change or regulations adopted to mitigate the consequences of climate change will have a material impact on the Company’s financial condition or results of operations.

Item 4. Controls and Procedures.

The Company maintains disclosure controls and procedures that are designed to ensure that information required to be disclosed in the Company’s Exchange Act reports is recorded, processed, summarized, and reported within the time periods specified in the SEC’s rules and forms, and that such information is accumulated and communicated to the Company’s management, including its Principal Executive Officer and Principal Financial Officer as appropriate, to allow timely decisions regarding required disclosure. Management necessarily applied its judgment in assessing the costs and benefits of such controls and procedures which, by their nature, can provide only reasonable assurance regarding management’s control objectives.

As of the end of the period covered by the report, the Company carried out an evaluation, under the supervision and with the participation of the Company’s management, including the Company’s Principal Executive Officer and Principal Financial Officer, of the effectiveness of the design and operation of the Company’s disclosure controls and procedures pursuant to Exchange Act Rule 13a-14. Based upon the foregoing, the Company’s Principal Executive Officer and Principal Financial Officer concluded that the Company’s disclosure controls and procedures are effective in timely alerting them to material information relating to the Company (including its consolidated subsidiary) required to be included in the Company’s Exchange Act reports. There have been no significant changes in the Company’s internal controls or in other factors that could significantly affect internal controls subsequent to the date the Company carried out its evaluation.

PART II - OTHER INFORMATION

Item 6. Exhibits

31.	Rule 13a-14(a)/15d-14(a) Certifications
32.*	Section 1350 Certifications
101.xml	XBRL Instance Document
101.xsd	XBRL Taxonomy Extension Schema Document
101.cal	XBRL Taxonomy Extension Calculation Linkbase Document
101.def	XBRL Taxonomy Extension Definition Linkbase Document
101.lab	XBRL Taxonomy Extension Label Linkbase Document
101.pre	XBRL Taxonomy Extension Presentation Linkbase Document
___________________________
* Furnished. Not Filed. Not incorporated by reference. Not subject to liability.

SIGNATURES

Pursuant to the requirements 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.

	ALTEX INDUSTRIES, INC.
Date: May 1, 2026	By: /s/ STEVEN H. CARDIN
	Steven H. Cardin
	Chief Executive Officer and Principal Financial Officer

FAQ

How did Altex Industries (ALTX) perform for the quarter ended March 31, 2026?

Altex Industries reported a net loss of $47,000 for the quarter. Revenue from oil and gas sales was only $4,000, while operating expenses reached $72,000, partially offset by $21,000 of interest income on its cash balances.

What were Altex Industries’ six-month results to March 31, 2026?

For the six months ended March 31, 2026, Altex Industries recorded a net loss of $77,000. Total revenue was $11,000 and other income $46,000, against $134,000 of operating expenses, reflecting a business that currently does not cover its cost base.

What is Altex Industries’ cash position and liquidity as of March 31, 2026?

As of March 31, 2026, Altex Industries held $2,478,000 in cash and cash equivalents and total assets of $2,651,000. It used $67,000 of cash in operating activities over six months and has no other identified internal or external liquidity sources besides working capital.

How large is the related-party liability owed to Altex Industries’ president?

Accrued expenses, related party totaled $1,235,000 at March 31, 2026. This represents accrued but unpaid salary, bonus, and related payroll taxes owed to the president, who may require payment at any time or elect to take bonus in common stock at fair market value.

Does Altex Industries expect to remain profitable at current production levels?

Altex Industries states that at current net oil and gas production, cash balances, interest rates, and commodity prices, revenue is unlikely to exceed expenses. Unless it invests substantially in producing wells or other ventures, the company expects to continue reporting net losses.

How have Altex Industries’ general and administrative expenses changed year over year?

General and administrative expenses fell from $211,000 in the six months ended March 31, 2025, to $132,000 in 2026. The prior period included $94,000 of bonus and related payroll tax expense, while the recent period reflects higher ongoing items such as insurance, audit, legal, rent, and taxes.

What does Altex Industries say about climate change impacts on its business?

Altex Industries states it does not believe climate change or related regulations will have a material impact on its financial condition or results of operations. This view is based on its current scale and operations, as discussed in its management commentary.