[10-Q] Norris Industries, Inc. Quarterly Earnings Report

Rhea-AI Filing Summary

Norris Industries (NRIS) reported Q2 FY2026 results for the quarter ended August 31, 2025. Revenue was $84,388, up slightly from $77,007 a year ago, while the net loss widened to $151,889 from $117,856 as higher lease operating and G&A costs offset modest sales gains.

For the first six months, revenue was $177,158 versus $177,274 last year, with a net loss of $319,297. Management attributes expense pressure partly to plugging and abandoning four wells. Interest expense decreased as prior notes were converted to equity in November 2024.

Liquidity remains tight: cash was $40,323 and working capital was negative by about $75,000 as of August 31, 2025. Related‑party notes totaled $3.5 million, and the company had $700,000 available on its credit line, with a subsequent $100,000 draw after quarter‑end. Stockholders’ deficit was $(4.43) million. Internal disclosure controls and procedures were deemed not effective due to previously identified material weaknesses. As of September 15, 2025, 108,245,688 common shares were outstanding.

Insights

Small-cap energy and credit analyst

Modest sales, higher costs, tight liquidity; reliance on related-party credit.

NRIS posted Q2 revenue of $84,388 with a wider net loss as lease operating and G&A costs rose, including costs tied to plugging four wells. Six-month revenue held nearly flat at $177,158, but losses increased, indicating limited operating leverage at current production levels.

Balance sheet signals ongoing constraint: cash of $40,323, negative working capital (~$75,000), and related‑party debt of $3.5M. The company cites $700,000 remaining availability (and a post‑quarter $100,000 draw), underscoring dependence on this line for operations.

Operationally, depletion declined and interest expense eased after prior debt-to-equity conversion, but stockholders’ deficit is $(4.43)M. Management concluded disclosure controls were not effective, which can add reporting risk. Subsequent filings may detail whether production or pricing trends improve margins.

false Q2 2026 --02-28 0001603793 0001603793 2025-03-01 2025-08-31 0001603793 2025-09-15 0001603793 2025-08-31 0001603793 2025-02-28 0001603793 us-gaap:RelatedPartyMember 2025-08-31 0001603793 us-gaap:RelatedPartyMember 2025-02-28 0001603793 NRIS:SeriesAConvertiblePreferredStockMember 2025-08-31 0001603793 NRIS:SeriesAConvertiblePreferredStockMember 2025-02-28 0001603793 2025-06-01 2025-08-31 0001603793 2024-06-01 2024-08-31 0001603793 2024-03-01 2024-08-31 0001603793 us-gaap:OilAndGasMember 2025-06-01 2025-08-31 0001603793 us-gaap:OilAndGasMember 2024-06-01 2024-08-31 0001603793 us-gaap:OilAndGasMember 2025-03-01 2025-08-31 0001603793 us-gaap:OilAndGasMember 2024-03-01 2024-08-31 0001603793 NRIS:SeriesAConvertiblePreferredStockMember us-gaap:PreferredStockMember 2025-02-28 0001603793 us-gaap:CommonStockMember 2025-02-28 0001603793 us-gaap:AdditionalPaidInCapitalMember 2025-02-28 0001603793 us-gaap:RetainedEarningsMember 2025-02-28 0001603793 NRIS:SeriesAConvertiblePreferredStockMember us-gaap:PreferredStockMember 2025-05-31 0001603793 us-gaap:CommonStockMember 2025-05-31 0001603793 us-gaap:AdditionalPaidInCapitalMember 2025-05-31 0001603793 us-gaap:RetainedEarningsMember 2025-05-31 0001603793 2025-05-31 0001603793 NRIS:SeriesAConvertiblePreferredStockMember us-gaap:PreferredStockMember 2024-02-29 0001603793 us-gaap:CommonStockMember 2024-02-29 0001603793 us-gaap:AdditionalPaidInCapitalMember 2024-02-29 0001603793 us-gaap:RetainedEarningsMember 2024-02-29 0001603793 2024-02-29 0001603793 NRIS:SeriesAConvertiblePreferredStockMember us-gaap:PreferredStockMember 2024-05-31 0001603793 us-gaap:CommonStockMember 2024-05-31 0001603793 us-gaap:AdditionalPaidInCapitalMember 2024-05-31 0001603793 us-gaap:RetainedEarningsMember 2024-05-31 0001603793 2024-05-31 0001603793 NRIS:SeriesAConvertiblePreferredStockMember us-gaap:PreferredStockMember 2025-03-01 2025-05-31 0001603793 us-gaap:CommonStockMember 2025-03-01 2025-05-31 0001603793 us-gaap:AdditionalPaidInCapitalMember 2025-03-01 2025-05-31 0001603793 us-gaap:RetainedEarningsMember 2025-03-01 2025-05-31 0001603793 2025-03-01 2025-05-31 0001603793 NRIS:SeriesAConvertiblePreferredStockMember us-gaap:PreferredStockMember 2025-06-01 2025-08-31 0001603793 us-gaap:CommonStockMember 2025-06-01 2025-08-31 0001603793 us-gaap:AdditionalPaidInCapitalMember 2025-06-01 2025-08-31 0001603793 us-gaap:RetainedEarningsMember 2025-06-01 2025-08-31 0001603793 NRIS:SeriesAConvertiblePreferredStockMember us-gaap:PreferredStockMember 2024-03-01 2024-05-31 0001603793 us-gaap:CommonStockMember 2024-03-01 2024-05-31 0001603793 us-gaap:AdditionalPaidInCapitalMember 2024-03-01 2024-05-31 0001603793 us-gaap:RetainedEarningsMember 2024-03-01 2024-05-31 0001603793 2024-03-01 2024-05-31 0001603793 NRIS:SeriesAConvertiblePreferredStockMember us-gaap:PreferredStockMember 2024-06-01 2024-08-31 0001603793 us-gaap:CommonStockMember 2024-06-01 2024-08-31 0001603793 us-gaap:AdditionalPaidInCapitalMember 2024-06-01 2024-08-31 0001603793 us-gaap:RetainedEarningsMember 2024-06-01 2024-08-31 0001603793 NRIS:SeriesAConvertiblePreferredStockMember us-gaap:PreferredStockMember 2025-08-31 0001603793 us-gaap:CommonStockMember 2025-08-31 0001603793 us-gaap:AdditionalPaidInCapitalMember 2025-08-31 0001603793 us-gaap:RetainedEarningsMember 2025-08-31 0001603793 NRIS:SeriesAConvertiblePreferredStockMember us-gaap:PreferredStockMember 2024-08-31 0001603793 us-gaap:CommonStockMember 2024-08-31 0001603793 us-gaap:AdditionalPaidInCapitalMember 2024-08-31 0001603793 us-gaap:RetainedEarningsMember 2024-08-31 0001603793 2024-08-31 0001603793 2024-03-01 2025-02-28 0001603793 NRIS:SeriesAConvertiblePreferredStockMember 2025-03-01 2025-08-31 0001603793 NRIS:SeriesAConvertiblePreferredStockMember 2024-03-01 2024-08-31 0001603793 us-gaap:ConvertibleDebtMember 2025-03-01 2025-08-31 0001603793 us-gaap:ConvertibleDebtMember 2024-03-01 2024-08-31 0001603793 srt:OilReservesMember 2025-06-01 2025-08-31 0001603793 srt:OilReservesMember 2024-06-01 2024-08-31 0001603793 srt:OilReservesMember 2025-03-01 2025-08-31 0001603793 srt:OilReservesMember 2024-03-01 2024-08-31 0001603793 srt:NaturalGasReservesMember 2025-06-01 2025-08-31 0001603793 srt:NaturalGasReservesMember 2024-06-01 2024-08-31 0001603793 srt:NaturalGasReservesMember 2025-03-01 2025-08-31 0001603793 srt:NaturalGasReservesMember 2024-03-01 2024-08-31 0001603793 NRIS:LoanNoteMember NRIS:JBBPartnersIncMember 2017-12-28 2017-12-28 0001603793 NRIS:LoanNoteMember NRIS:JBBPartnersIncMember 2017-12-28 0001603793 NRIS:LoanNoteMember NRIS:JBBPartnersIncMember NRIS:ModificationOfExistingLoanMember 2018-06-26 0001603793 NRIS:LoanNoteMember NRIS:JBBPartnersIncMember NRIS:ModificationOfExistingLoanMember 2018-06-26 2018-06-26 0001603793 NRIS:LoanNoteMember NRIS:JBBPartnersIncMember 2019-05-21 2019-05-21 0001603793 NRIS:LoanNoteMember NRIS:JBBPartnersIncMember us-gaap:ExtendedMaturityMember 2019-05-21 2019-05-21 0001603793 NRIS:SecuredPromissoryNoteMember NRIS:OdysseyEnterprisesLLCMember 2019-06-13 2019-06-13 0001603793 NRIS:SecuredPromissoryNoteMember NRIS:OdysseyEnterprisesLLCMember 2019-06-13 0001603793 NRIS:JBBPartnersIncMember 2019-10-01 2019-10-01 0001603793 NRIS:JBBPartnersIncMember 2019-10-01 0001603793 NRIS:LoanNoteMember NRIS:JBBPartnersIncMember 2020-05-29 2020-05-29 0001603793 NRIS:LoanNoteMember NRIS:JBBPartnersIncMember us-gaap:ExtendedMaturityMember 2020-05-29 2020-05-29 0001603793 NRIS:LoanNoteMember NRIS:JBBPartnersIncMember 2020-12-22 2020-12-22 0001603793 NRIS:LoanNoteMember NRIS:JBBPartnersIncMember us-gaap:ExtendedMaturityMember 2020-12-22 2020-12-22 0001603793 NRIS:JBBPartnersIncMember 2021-05-01 2021-05-01 0001603793 NRIS:JBBPartnersIncMember 2021-05-01 0001603793 NRIS:LoanNoteMember NRIS:JBBPartnersIncMember 2022-05-02 2022-05-02 0001603793 NRIS:LoanNoteMember NRIS:JBBPartnersIncMember us-gaap:ExtendedMaturityMember 2022-05-02 2022-05-02 0001603793 NRIS:LoanNoteMember NRIS:JBBPartnersIncMember us-gaap:ExtendedMaturityMember 2023-09-06 2023-09-06 0001603793 NRIS:LoanNoteMember NRIS:JBBPartnersIncMember us-gaap:ExtendedMaturityMember 2023-09-06 0001603793 NRIS:JBBPartnersIncMember 2024-11-19 0001603793 NRIS:JBBPartnersIncMember 2024-11-19 2024-11-19 0001603793 NRIS:JBBPartnersIncMember 2025-03-01 2025-08-31 0001603793 NRIS:JBBPartnersIncMember 2025-08-31 0001603793 2018-09-01 2018-09-30 iso4217:USD xbrli:shares iso4217:USD xbrli:shares xbrli:pure

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)

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

For the quarterly period ended August 31, 2025

or

☐ 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: 000-55695

Norris Industries, Inc.

(Exact name of registrant as specified in its charter)

Nevada		46-5034746
(State or other jurisdiction of incorporation or organization)		(I.R.S. Employer Identification No.)

102 Palo Pinto St, Suite B Weatherford, Texas		76086
(Address of principal executive offices)		(Zip Code)

(855) 809-6900

(Registrant’s telephone number, including area code)

N/A

(Former name, former address and former fiscal year, if changed since last report)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class		Trading Symbol(s)		Name of each exchange on which registered
N/A		N/A		N/A

Securities registered pursuant to Section 12(g) of the Act:

Title of each class		Trading Symbol(s)		Name of each exchange on which registered
Common Stock, $.01 Par Value		NRIS		OTCMKTS

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 ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted 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 ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.

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

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13 (a) of the Exchange Act. ☐

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

As of September 15, 2025, the registrant had 108,245,688 shares of common stock issued and outstanding.

NORRIS INDUSTRIES, INC.

TABLE OF CONTENTS

FORM 10-Q REPORT

August 31, 2025

		Page Number
PART I - FINANCIAL INFORMATION
Item 1.	Consolidated Financial Statements (unaudited)
	Consolidated Balance Sheets	F-1
	Consolidated Statements of Operations	F-2
	Consolidated Statements of Changes in Stockholders’ Deficit	F-3
	Consolidated Statements of Cash Flows	F-4
	Notes to Consolidated Financial Statements	F-5
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	3
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	8
Item 4.	Controls and Procedures	8
PART II - OTHER INFORMATION
Item 1.	Legal Proceedings	9
Item 1A.	Risk Factors	9
Item 2.	Unregistered Sales of Equity Securities	9
Item 3.	Defaults Upon Senior Securities	9
Item 4.	Mine Safety Disclosures	9
Item 5.	Other Information	9
Item 6.	Exhibits	9
SIGNATURES		10

2

NORRIS INDUSTRIES, INC.

CONSOLIDATED BALANCE SHEETS

AUGUST 31, 2025 AND FEBRUARY 28, 2025

		August 31, 2025				February 28, 2025
			(unaudited)
ASSETS
Current Assets
Cash		$	40,323			$	85,627
Account receivable - oil & gas			15,010				27,223
Total Current Assets			55,333				112,850
Oil and Gas Property - Full Cost Method
Properties subject to amortization			3,218,232				3,243,322
Less: accumulated depletion and impairment			(3,019,419	)			(2,995,837	)
Total Oil and Gas Property, net			198,813				247,485
Total Assets		$	254,146			$	360,335
LIABILITIES AND STOCKHOLDERS’ DEFICIT
Current Liabilities
Accounts payable and accrued expenses		$	129,820			$	126,355
Total Current Liabilities			129,820				126,355
Convertible note payable - related party			3,500,000				3,300,000
Accounts payable and accrued expenses - related parties-long term			695,570				639,532
Asset retirement obligations			354,588				400,983
Total Liabilities			4,679,978				4,466,870
Commitments and Contingencies (see Note 6)			-				-
Stockholders’ Deficit
Preferred stock, $0.001 par value per share 20,000,000 shares authorized			-				-
Series A Convertible Preferred stock, $0.001 par value per share 1,000,000 shares authorized; 1,000,000 shares issued and outstanding; liquidation preference of $2,250,000			1,000				1,000
Preferred stock, value			1,000				1,000
Common stock, $0.001 par value per share, 150,000,000 shares authorized; 108,245,688 shares issued and outstanding			108,246				108,246
Additional paid-in capital			7,658,050				7,658,050
Accumulated deficit			(12,193,128	)			(11,873,831	)
Total Stockholder’s Deficit			(4,425,832	)			(4,106,535	)
Total Liabilities and Stockholders’ Deficit		$	254,146			$	360,335

The accompanying notes are an integral part of these interim unaudited consolidated financial statements.

F-1

NORRIS INDUSTRIES, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

FOR THE THREE AND SIX MONTHS ENDED AUGUST 31, 2025 AND 2024

(UNAUDITED)

			1				2				3				4
		Three Months Ended August 31,								Six Months Ended August 31,
		2025				2024				2025				2024
Revenues
Oil and gas sales		$	84,388			$	77,007			$	177,158			$	177,274
Total Revenues			84,388				77,007				177,158				177,274
Operating Expenses
Lease operating expenses			119,716				112,776				254,653				240,633
General and administrative expenses			78,858				31,359				162,182				103,936
Depletion, depreciation, and accretion			9,013				16,246				23,582				51,212
Total Operating Expenses			207,587				160,381				440,417				395,781
Loss from Operations			(123,199	)			(83,374	)			(263,259	)			(218,507	)
Other Expense
Interest expense			(28,690	)			(34,482	)			(56,038	)			(68,386	)
Total Other Expense			(28,690	)			(34,482	)			(56,038	)			(68,386	)
Net Loss		$	(151,889	)		$	(117,856	)		$	(319,297	)		$	(286,893	)
Net loss per common share - basic and diluted		$	(0.00	)		$	(0.00	)		$	(0.00	)		$	(0.00	)
Weighted average number of common shares outstanding - basic and diluted			108,245,688				90,883,013				108,245,688				90,883,013

The accompanying notes are an integral part of these interim unaudited consolidated financial statements.

F-2

NORRIS INDUSTRIES, INC.

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ DEFICIT

FOR THE THREE AND SIX MONTHS ENDED AUGUST 31, 2025 and 2024

(UNAUDITED)

							1								2				3				4				5
		Series A Convertible Preferred Stock								Common Stock								Additional Paid-in				Accumulated				Total Stockholders’
		Shares				Amount				Shares				Amount				Capital				Deficit				Deficit
Balance, March 1, 2025			1,000,000			$	1,000				108,245,688			$	108,246			$	7,658,050			$	(11,873,831	)		$	(4,106,535	)
Net loss			-				-				-				-				-				(167,408	)			(167,408	)
Balance, May 31, 2025			1,000,000			$	1,000				108,245,688			$	108,246			$	7,658,050			$	(12,041,239	)		$	(4,273,943	)
Net loss			-				-				-				-				-				(151,889	)			(151,889	)
Balance, August 31, 2025			1,000,000			$	1,000				108,245,688			$	108,246			$	7,658,050			$	(12,193,128	)		$	(4,425,832	)

		Series A Convertible Preferred Stock								Common Stock								Additional Paid-in				Accumulated				Total Stockholders’
		Shares				Amount				Shares				Amount				Capital				Deficit				Deficit
Balance, March 1, 2024			1,000,000			$	1,000				90,883,013			$	90,883			$	6,286,399			$	(11,312,257	)		$	(4,933,975	)
Net loss			-				-				-				-				-				(169,037	)			(169,037	)
Balance, May 31, 2024			1,000,000			$	1,000				90,883,013			$	90,883			$	6,286,399			$	(11,481,294	)		$	(5,103,012	)
Balance			1,000,000			$	1,000				90,883,013			$	90,883			$	6,286,399			$	(11,481,294	)		$	(5,103,012	)
Net loss			-				-				-				-				-				(117,856	)			(117,856	)
Balance, August 31, 2024			1,000,000			$	1,000				90,883,013			$	90,883			$	6,286,399			$	(11,599,150	)		$	(5,220,868	)
Balance			1,000,000			$	1,000				90,883,013			$	90,883			$	6,286,399			$	(11,599,150	)		$	(5,220,868	)

The accompanying notes are an integral part of these interim unaudited consolidated financial statements.

F-3

NORRIS INDUSTRIES, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

FOR THE SIX MONTHS ENDED AUGUST 31, 2025 AND 2024

(UNAUDITED)

			1				2
		2025				2024
Cash Flow from Operating Activities
Net loss		$	(319,297	)		$	(286,893	)
Adjustments to reconcile net loss to net cash /(used in) operating activities:
Depletion, depreciation and accretion			23,582				51,212
Loss on settlement of asset retirement obligations			31,171				-
Changes in operating assets and liabilities:
Settlement of asset retirement obligations			(52,476	)			-
Accounts receivable - oil & gas			12,213				3,561
Accounts payable and accrued expenses			3,465				(18,744	)
Accounts payable and accrued expenses - related parties			56,038				68,386
Net Cash Used in Operating Activities			(245,304	)			(182,478	)
Cash Flows from Financing Activities
Proceeds from related party loans			200,000				200,000
Net Cash provided by Financing Activities			200,000				200,000
Net Increase (Decrease) in Cash			(45,304	)			17,522
Cash – beginning of period			85,627				54,217
Cash – end of period		$	40,323			$	71,739
Noncash Investing and Financing Activities
Change in estimate of asset retirement obligations		$	25,090			$	31,570

The accompanying notes are an integral part of these interim unaudited consolidated financial statements.

F-4

NORRIS INDUSTRIES, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

Note 1 – Organization, Nature of Operations and Summary of Significant Accounting Policies

Norris Industries, Inc. (“NRIS” or the “Company”), was incorporated on February 19, 2014, as a Nevada corporation. The Company was formed to conduct operations in the oil and gas industry. The Company’s principal operating properties are in the Ellenberger formation in Coleman County, and in Jack County and Palo-Pinto County, Texas. The Company’s production operations are all located in the State of Texas.

On April 25, 2018, the Company incorporated a Texas registered subsidiary, Norris Petroleum, Inc., as an operating entity.

Basis of Presentation

The accompanying financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and the rules of the Securities and Exchange Commission (“SEC”) and should be read in conjunction with the audited financial statements and notes thereto contained in the Company’s annual report filed with the SEC on Form 10-K for the year ended February 28, 2025. In the opinion of management, all adjustments, consisting of normal recurring adjustments, necessary for a fair presentation of financial position and the results of operations for the interim periods presented have been reflected herein. The results of operations for interim periods are not necessarily indicative of the results to be expected for the full year. The Company’s consolidated financial statements include the accounts of the Company, its wholly-owned subsidiaries and entities in which the Company has a controlling financial interest. All significant inter-company accounts and transactions have been eliminated in consolidation.

Liquidity and Capital Considerations

The accompanying consolidated financial statements have been prepared assuming that the Company will continue as a going concern, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business for the twelve-month period following the issuance date of these consolidated financial statements.

The timeline and potential magnitude of the various conflicts around the world, as happened recently in the middle east, and its impact on the Company’s future operations is currently unknown. The Company has incurred continuing losses since 2016, including a loss of $561,574 and $319,297 for the fiscal year ended February 28, 2025, and the six-month period ended August 31, 2025, respectively. During the six months ended August 31, 2025, the Company incurred cash losses of approximately $245,000 from its operating activities. As of August 31, 2025, the Company had a cash balance of approximately $40,000 and negative working capital of approximately $75,000.

The Company’s principal capital and exploration expenditures during next fiscal year are expected to relate to selected well workovers on its Jack and Palo Pinto County acreages. The Company believes that it has sufficient cash on hand and available funds from its credit line to fund its costs for such expenditures as well as other operating costs, for the 12-month period subsequent to the issuance of these consolidated financial statements.

In the event that the Company requires additional capital to fund higher operational losses or oil and gas property lease purchases for the next 12 months, the Company expects to seek additional capital from one or more sources via restricted private placement sales of equity and debt securities from those other than JBB. However, there can be no assurance that the Company would be able to secure the necessary capital to fund its costs on acceptable terms, or at all. If, for any reason, the Company is unable to fund its operations, it would have to undertake other aggressive cost-cutting measures and then be subject to possible loss of some of its rights and interests in prospects to curtail operations and forced to forego opportunities or in worst case, cease operations.

Use of Estimates

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements and the reported amounts of revenues and expense during the period. Actual results could differ from those estimates.

F-5

Risks and Uncertainties

The Company’s operations are subject to significant risks and uncertainties, including financial, operational, technological, and other risks associated with operating an emerging business, including the potential risk of business failure.

Significant Accounting Policies

During the six months ended August 31, 2025, there have been no material changes to the Company’s significant accounting policies as described in its 2025, Form 10-K.

Net Loss per Common Share

Basic net loss per common share amounts are computed by dividing the net loss available to. The Company’s shareholders by the weighted average number of common shares outstanding over the reporting period. In periods in which the Company reports a net loss, dilutive securities are excluded from the calculation of diluted earnings per share as the effect would be anti-dilutive. The following table summarizes the common stock equivalents excluded from the calculation of diluted net loss per common share as the inclusion of these shares would be anti-dilutive for the six months ended August 31, 2025, and 2024:

Schedule of Antidilitive Securities Excluded from Computation of Earning Per Share

		2025				2024
Series A Convertible Preferred Stock			66,666,667				66,666,667
Convertible debt			19,750,000				29,750,000
Total common shares to be issued			86,416,667				96,416,667

Concentrations of Credit Risk

Financial instruments which potentially subject the Company to concentrations of credit risk include cash deposits placed with financial institutions. The Company maintains its cash in bank accounts which, at times, may exceed federally insured limits as guaranteed by the Federal Deposit Insurance Corporation (“FDIC”). At August 31, 2025, $-0- of the Company’s cash balances was uninsured. The Company has not experienced any losses on such accounts.

Note 2 – Revenues from Contracts with Customers

Disaggregation of Revenues from Contracts with Customers

The following table disaggregates revenue by significant product types for the six months ended August 31, 2025 and 2024:

Schedule of Disaggregation of Revenue

			1				2				3				4
		Three Months Ended August 31,								Six Months Ended August 31,
		2025				2024				2025				2024
Oil sales		$	64,667			$	57,165			$	136,174			$	143,823
Natural gas sales			19,721				19,842				40,984				33,451
Total		$	84,388			$	77,007			$	177,158			$	177,274
Revenue		$	84,388			$	77,007			$	177,158			$	177,274

There were no significant contract liabilities or transaction price allocations to any remaining performance obligations as of August 31, 2025 and February 28, 2025.

F-6

Note 3 – Oil and Gas Properties

The following table summarizes the Company’s oil and gas activities by classification for the six months ended August 31, 2025:

Summary of Oil and Gas Activities

		February 28, 2025				Additions				Change in Estimates				August 31, 2025
Oil and gas properties, subject to depletion		$	2,930,237			$	-			$	-			$	2,930,237
Asset retirement costs			313,085				-				(25,090	)			287,995
Accumulated depletion and impairment			(2,995,837	)			(23,582	)			-				(3,019,419	)
Total oil and gas assets		$	247,485				(23,582	)		$	(25,090	)		$	198,813

The depletion recorded for production on proved properties for the three months ended August 31, 2025 and 2024, amounted to $9,013 and $16,246, respectively. The depletion recorded for production on proved properties for the six months ended August 31, 2025 and 2024, amounted to $23,582 and $39,521, respectively.

During the six months ended August 31, 2025 and 2024, there were no ceiling test write-downs of the Company’s oil and gas properties.

Note 4 – Asset Retirement Obligations

The following table summarizes the change in the Company’s asset retirement obligations during the six months ended August 31, 2025:

Schedule of Asset Retirement Obligations

Asset retirement obligations as of February 28, 2025		$	400,983
Settlement of asset retirement obligations due to plugging and abandoning well			(21,305	)
Current period revision of previous estimates			(25,090	)
Asset retirement obligations as of August 31, 2025		$	354,588

During the three and six months ended August 31, 2025, the Company recognized accretion expense of $-0-. During the three and six months ended August 31, 2024, the Company recognized accretion expense of $-0- and $11,691, respectively.

Note 5 – Related Party Transactions

Promissory Note to JBB

On December 28, 2017, the Company borrowed $1,550,000 from JBB to complete the purchases of a series of oil and gas leases (the “Loan Note”). The loan has an interest rate of 3% per annum, a maturity date of December 28, 2018 and is secured by all assets of the Company. The loan is convertible to the Company’s common stock at the conversion rate of $0.20 per share.

On June 26, 2018, the Company and JBB entered into a modification of the existing Loan Note, to add provisions to permit the Company to obtain additional advances under the Loan Note up to a maximum of $1,000,000. The Company may request an advance in increments of $100,000 no more frequently than every 30 days, provided that (i) it provides a description of the use of proceeds for the advance reasonably acceptable to JBB, and (ii) the Company is not otherwise in default of the Loan Note. The original loan amount and the advances are secured by all the assets of the Company and are convertible into common stock of the Company at the rate of $0.20 per common share, subject to adjustment for any reverse and forward stock splits. The Loan Note may be repaid at any time, without penalty, however, any advance that is repaid before maturity may not be re-borrowed as a further advance.

On May 21, 2019, the Company entered into an extension agreement with JBB to extend the maturity of its outstanding Loan Note to September 30, 2020.

On June 13, 2019, JBB lent the Company $250,000 under a secured promissory note. The funds were used to acquire the remaining working interest in the Marshall Walden oil and gas property from Odyssey Enterprises LLC. The loan has an interest rate of 5% per annum, a maturity date of June 30, 2022, and is secured by all assets of the Company. The loan is convertible into the Company’s common stock at a conversion rate of $0.20 per common share.

F-7

On October 1, 2019, the Company entered into another amendment of its Loan Note with JBB to increase the line of credit by an additional $500,000, for a total of $1,500,000, and extend the maturity date for the original note and line of credit to December 31, 2020.

On May 29, 2020, the Company entered into an extension agreement with JBB to extend the maturity of its outstanding Loan Note to September 30, 2021.

On December 22, 2020, the Company entered into an extension agreement with JBB to extend the maturity of all its outstanding indebtedness under credit line and Loan Note to May 31, 2022.

On May 1, 2021, the Company entered into a new funding agreement with a maturity date of May 31, 2022 and an interest rate of five percent annual percentage rate (5% APR) with JBB for a further $1 million drawable in $100,000 increments at the discretion of JBB to cover the Company’s current and projected working capital requirements in the near term. The loan is convertible into common stock of the Company at the rate of $0.08 per share, subject to adjustment for any reverse and forward stock splits.

On May 2, 2022, the Company entered into an extension agreement with JBB to extend the maturity of its outstanding Loan Note to September 30, 2023.

On September 6, 2023, the Company entered into another amendment of its Loan Note with JBB to increase the line of credit by an additional $500,000, for a total of $2,000,000, and extend the maturity date for the original note and line of credit to March 31, 2027.

On November 19, 2024, the Company entered into agreements with JBB to convert $1,300,000 million outstanding notes and respective accrued interests of $89,014 into 17,362,675 shares of common shares. The conversion was executed at a ratio of $0.08 per share, as outlined in the original funding agreements.

During the six months ended August 31, 2025, the loan agreement was amended to increase available borrowing by $500,000. As of August 31, 2025, the Company had availability of $700,000 on its existing credit line with JBB.

The Company recognized interest expense of $56,038 and $68,386 for the six months ended August 31, 2025 and 2024, respectively, and recognized interest expense of $28,690 and $34,482 for the three months ended August 31, 2025 and 2024, respectively. Accrued interest as of February 28, 2025, and August 31, 2025 was $639,532 and $695,570, respectively. As of February 28, 2025 and August 31, 2025, there was $3,300,000 and $3,500,000, respectively, outstanding under notes payable to JBB.

Note 6 – Commitments and Contingencies

Office Lease

In September 2018, the Company moved to the offices of International Western Oil (“IWO”) in Weatherford, TX that is being rented on a month-to-month sublease basis at rate of $950 per month from IWO. During the three and six months ended August 31, 2025 and three and six month ended August 31, 2024, the Company incurred $2,850 and $5,700, respectively, of rent expense under this lease that is included in lease operating expenses on the consolidated statements of operations.

Leasehold Drilling Commitments

The Company’s oil and gas leasehold acreage is subject to expiration of leases if the Company does not drill and hold such acreage by production or otherwise exercises options to extend such leases, if available, in exchange for payment of additional cash consideration.

Note 7 - Subsequent Event

In preparing these consolidated financial statements, the Company has evaluated events and transactions for potential recognition or disclosure through the date these consolidated financial statements were issued.

F-8

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations.

Cautionary Notice Regarding Forward Looking Statements

The information contained in this report contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Actual results may materially differ from those indicated in the forward-looking statements as a result of certain risks and uncertainties set forth in this report. Although the Company’s management believes that the assumptions made and expectations reflected in the forward-looking statements are reasonable, there is no assurance that the underlying assumptions will, in fact, prove to be correct or that actual results will not be different from expectations expressed in this report.

This filing contains a number of forward-looking statements which reflect management’s current views and expectations with respect to our business, strategies, products, future results and events, and financial performance. All statements made in this filing other than statements of historical facts, including statements addressing operating performance, events or developments which management expects or anticipates will or may occur in the future, and non-historical information are forward-looking statements. In particular, the words “believe,” “expect,” “intend,” “anticipate,” “estimate,” “may,” and variations of those words and similar expressions identify forward-looking statements. The foregoing are not the exclusive means of identifying forward looking statements, and their absence does not mean that a statement is not forward-looking. These forward-looking statements are subject to certain risks and uncertainties. Our actual results, performance or achievements could differ materially from historical results as well as those expressed in, anticipated, or implied by these forward-looking statements.

Readers should not place undue reliance on these forward-looking statements, which are based on management’s current expectations and projections about future events, are not guarantees of future performance, are subject to risks, uncertainties and assumptions (including those described below), and apply only as of the date of this filing. Factors which could cause or contribute to such differences include, but are not limited to, the risks discussed in our Annual Report on Form 10-K and in the press releases and other communications to shareholders issued by us from time to time which attempt to advise interested parties of the risks and factors which may affect our business. We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise.

Overview

Norris Industries, Inc. (the “Company”, “we”, or “us”) is an oil and natural gas company that focuses on the acquisition, development, and exploration of crude oil and natural gas properties in Texas. As of March 1, 2025 the SEC Non-Escalated Analysis of Estimated Proved Reserve of our various leases in Jack County and Palo-Pinto County, the Ratliff leases, the Marshall-Walden, and the Bend Arch Lion 1A and Bend Arch Lion 1B leaseholds, is a total of 22.11 Mbbl in oil net reserves, plus 64.19 MMcf in natural gas net reserves out of total of BOE equivalent of 33 Mbbl in gross reserves, which is up from prior year by 3 Mbbl due to reduction of expected production as result of well workover issues.

For near- to medium-term cash flow enhancement, the Company will plan to focus on existing fields and to selectively consider larger-reserve oil and gas properties with low production to acquire at reasonable cost and then implement effective Enhanced Oil Recovery (“EOR”) methods to improve its current revenues and assets. For long-term cash flow enhancement, the Company plans to identify other oil-field related, and niche enterprises to consider for bolt on, or diversified acquisition targets to grow Company revenues. This may be with the use of capital partners to buyout via the Company’s strategic joint venture partnerships, and to raise outside capital to fund any potential future acquisition.

The Company’s long-term objective is to increase shareholder value by growing reserves, production, and cash flow. As result we are actively seeking to identify and have under consideration a selected number of acquisition opportunities in the oilfield services type companies and other non-oilfield companies that may better align with our operational plans to implement a diversified growth strategy.

3

Notwithstanding the above stated objectives, the ramifications of the prior pandemic containment measures and consequent disruptions to the United States and world economies due to the COVID – 19 viral outbreaks had an adverse impact on the overall business of the Company and the industry in which it operates. The demand for oil and gas has impacted all producers as commodity prices of oil and gas have increased substantially but so has inflation resulting in higher costs for materials, equipment, personnel and service providers which the US Federal Reserve has been adjusting interest rate policies that has tightened financial conditions. In addition, in early 2022 the industry faced added complications as result of the Russian Federation invasion of Ukraine and the Hamas terrorist attack on Israel in October 2023, and the war response from Israeli forces on Gaza has created further instability in the Middle East. In June 2025, Isreal and the United States undertook a strike on Iran’s nuclear facilities. As a result, of energy prices changing we are unable to predict exact supply and demand balances that will continue to be highly volatile and thus affect our revenues into the future. As result of our low production and prices, we anticipate that we may not be able to cover operating costs and will have to take cost-cutting measures and seek continued operational financing.

As a result of the prior COVID-19 pandemic and wars in Ukraine, Middle East conflicts and the various governmental and political responses and those of our subcontractors, customers and suppliers, we expect continued delays or disruptions and temporary suspensions of operations due to shortages of labor and increased cost from suppliers. In addition, our financial condition and results of operations have been and are likely to continue to be adversely affected. Thus, subject to adjustments due to the general economic consequences and the more specific impact on the oil and gas industry, the current general strategic objectives of the Company are set forth below.

Our Business Strategy

We are a small Exploration and Production (“E&P”) oil and natural gas company that focuses on the acquisition, development, and exploration of crude oil and natural gas properties in Texas. The Company is currently managed by business and oil and gas exploration veterans who specialize in the oil and gas acquisition and exploration markets of the Central West Texas region. The Company’s goal is to tap into the high potential leases of the Central West Texas region of the United States, aiming to unlock its potential, specifically in the prolific Bend Arch-Fort Worth region. This area is approximately 120 miles long and 40 miles wide running from Archer County, Texas in the north to Brown County, Texas in the south. The Company is also looking at other acquisition opportunities in the Permian Basin, West Texas, East Texas and South Texas region.

Management believes that focusing on the development of existing small producing fields is one of the key differentiators of the Company. Oil and natural gas reserve development is a technologically oriented industry. Management believes that the use of current generally available technology has greatly increased the success rate of finding commercial oil or natural gas deposits. In this context, success means the ability to make an oil/gas well that produces a commercialized quantity of hydrocarbons.

We plan to execute the following business strategies:

Develop and Grow Our Hydrocarbon Resource Acreage Positions Using Outside Development Expertise. We plan to continue to seek and acquire niche assets in hydrocarbon-rich resource plays to improve our asset quality and expand our drilling inventory. We plan to leverage our management team’s expertise and apply the latest available EOR technologies to economically develop our existing property portfolio in Central West and East Texas in addition to any assets in other regions we may acquire. We operate much of our acreage, thus giving us certain control over the planning of capital expenditures, execution and cost reduction. Our operational plan allows us to adjust our capital spending based on drilling results and the economic environment. As a small producer, we regionally evaluate industry drilling results to implement simple yet effective operating practices which may increase our initial production rates, ultimate recovery factors and rate of return on invested capital.

The Company’s long-term objective is to increase shareholder value by growing reserves, production, and cash flow. As result we may seek to identify and consider acquisition opportunities of oilfield services companies and other non-oilfield companies to implement a diversified growth strategy.

Our management’s time in the petroleum markets and our ability to contract experienced geology expertise allows us to identify and secure acreage with potential reserves. Management believes that the Company’s near prospects as a public company could become attractive as a potential merger candidate for acquisition of a private enterprise.

Our Competitive Strengths

Management believes that we have a number of competitive strengths that will allow us to successfully execute our business strategies:

4

Simple Capital Structure. We have a simple capital structure and de-risked inventory of quality locations with what we believe is upside potential to take advantage of the current recovery of oil prices to acquire potential production at reasonable cost. Management believes there are opportunities for profits to be made now that oil prices appear to have stabilized and if they continue to gradually rise higher.

Moderate Risk Exploration Practice. Unlike many major oil companies that often drill very deep wells with a high degree of risk, we focus on shallow well exploration (sub 5,000 feet) that is less expensive and has lower risk factors. The basis for management’s belief that the wells that can be drilled in the prospective leases will have the capacity to produce a reasonable amount of hydrocarbon and due to our recent studies of the general areas where we are prospecting the projects. That is our most important exploration practice.

Under The Radar Asset Base. Management believes our local West Texas E&P team has a special talent in acquiring local “prime time” hydrocarbon land leases with sub-300 barrels of oil per day (“bopd”) wells that have large hydrocarbon reserves. Management believes that these “under the radar” prospective leases have multi-year drilling inventory and reasonable production history with high upside potential and not readily accessible to the public for auctions, thus adding to our competitive advantage on these “under the radar” opportunities. It is because management also believes that these highly valuable leases are not economically justifiable for the major oil and gas companies in the region because such companies need the wells, they drill to produce at least 300 barrels (“Bbls”) of oil per day per well.

Technologies

Oil and natural gas reserve development is a technologically oriented industry; many techniques developed by the industry are now used in other industries, including the space program. Management believes that technological innovations have made it possible for the oil and natural gas industry to furnish the fuels that power the world economy. Management also believes that technology has greatly increased the success rate of finding commercial oil or natural gas deposits. In this context, success rate means the ability to make an oil/gas well that can produce a commercialized quantity of hydrocarbon.

At NRIS, we focus on core basic field EOR management practices and contract outside experts to provide us the understanding of complex mineralogy in shale reservoirs to better determine zones prone to fracture stimulation. This technology can suggest where to frack by providing us with available data to deliver us a greater chance of success. Our field engineers, geologists and petrophysicists work together for better drilling decisions.

Sales Strategy

Our sales strategy in relation to spot pricing will be to produce less when the sales price is lower and produce more when the sales price is higher. To maintain the lowest production cost, we will aim to have our inventory be as low as possible, in some instances virtually zero. Our E&P core team has business relationships with BML, Transport Oil, and Lion Oil Trading & Transportation, for oil sales and WTG Jameson for gas sales. The Company entered into production agreements with BML, Lion Oil and WTG Jameson so that, as our tier 1 buyer, they can handle pick-up and sales of our crude oil stock to refineries and gas via local gas pipelines.

As such, crude oil will be picked up from our leases as needed during the calendar month. At the end of the month the crude total sales will be tallied by lease and the 30-day average of the daily closing of oil will be tabulated. On or about the 25th of the following month the proceeds checks’ will be issued to the financial parties of record.

Operational Plans

Overall, we seek to acquire on a selective basis, oil and gas reserve concessions with existing production. To maintain our operations and complete any acquisitions we intend to raise capital via equity or debt, be this from our control owner, or other third-party financing sources, including the capital markets. The Company is still in the process of assessing the wells it holds or recently acquired and is reviewing its options.

5

As result of the COVID-19 Pandemic, the Company took a pause on any acquisition activity in the past four years. If the Company does review any acquisitions, it will follow a model which is based on a concept that has been proven in the past to be an effective and successful path of development for many other well-known E&P players:

a)	The financed acquisition of mature smaller oil fields that have potential for instituting EOR incremental production processes; and
b)	Develop strategic partnerships with existing operators to share production increases garnered through the implementation of this EOR plan.

The Company has plans to limit its operating budget for current wells to basic maintenance and has not determined whether to spend for any new drill programs in the near future. In furtherance of this objective, the Company recently plugged four (4) unprofitable wells.

Results of Operations

Comparison of the Three Months Ended August 31, 2025, with the Three Months Ended August 31, 2024

Revenues

The Company generated revenues of $84,388 from oil and gas sales for the three months ended August 31, 2025, compared to $77,007 for the three months ended August 31, 2024. The increase in revenues mainly came from a increase in oil and gas production.

Operating Expenses

Operating expenses for the three months ended August 31, 2025, and 2024 were $207,587 and $160,381, respectively. Our lease operating expenses increased to $119,716 for the three-month period ended August 31, 2025, compared to $112,776 for the three-month period ended August 31, 2024, that was primarily related to higher variable lease operating expenses incurred during the current period. Our general and administrative expenses increased to $78,858 for the three-month period ended August 31, 2025, compared to $31,359 for the three-month period ended August 31, 2024, primarily because of additional cost incurred from plugging and abandoning four of the wells in the current quarter than management’s estimation recorded in the asset retirement obligation. Our depletion, depreciation and accretion expense decreased by $7,233, primarily related to a decrease in depletion expenses recognized during the three-month ended August 31, 2025 than the same period in 2024, resulting from lower estimates on asset retirement obligations.

Other Expenses

For the three months ended August 31, 2025, and 2024, the Company recorded interest expense of $28,690 and $34,482 related to outstanding debts. The decrease in interest expense was the result of notes conversion that occurred in November 2024, resulting in less outstanding loans during the current quarter.

Net Loss

We had a net loss in the amount of $151,889 for the three months ended August 31, 2025, compared to a net loss of $117,856 for the three months ended August 31, 2024. The increase in losses was primarily related to costs from plugging and abandoning four of the wells in the current quarter versus none in the same quarter of prior year.

6

Comparison of the Six Months Ended August 31, 2025 with the Six Months Ended August 31, 2024

Revenues

The Company generated revenues of $177,158 from oil and gas sales for the six months ended August 31, 2025, compared to $177,274 for the six months ended August 31, 2024. The slight change in revenues mainly attributable to higher production in the six months ended August 31, 2025 than in the six months ended August 31, 2024 and offset by the decrease in oil and price from 2024 to 2025.

Operating Expenses

Operating expenses for the six months ended August 31, 2025, and 2024 were $440,417 and $395,781, respectively. Our lease operating expenses increased and were $254,653 for the six-month period ended August 31, 2025, compared to $240,633 for the six-month period ended August 31, 2024, that was primarily related to higher variable lease operating expenses as a result of higher production during the current period. Our general and administrative expense increased to $162,182 for the six-month period ended August 31, 2025, compared to $103,936 for the six-month period ended August 31, 2024, primarily because of additional costs from plugging and abandoning four of the wells in the current quarter than management’s estimation recorded in the asset retirement obligation.

Depletion and Accretion Expenses

For the six months ended August 31, 2025, and 2024, the Company recorded depletion and accretion expense of $23,582 and $51,212, respectively, related to depletion of oil and gas properties.

Other Expense

For the six months ended August 31, 2025, and 2024, the Company recorded interest expense of $56,038 and $68,386, respectively, related to the related party loans; the decrease in interest expense was due to conversion of partial outstanding related party loans to equity in November 2024.

Net Loss

We had a net loss in the amount of $319,297 for the six months ended August 31, 2025, compared to a net loss of $286,893 for the six months ended August 31, 2024. The increase in losses was primarily related to costs incurred related to plugging and abandoning four of the wells.

Liquidity and Capital Resources

As of August 31, 2025, the Company had cash on-hand of $40,323.

Net cash used in operating activities during the three months ended August 31, 2025, was $245,304, compared to cash used in operating activities of $182,478 for the same period in 2024.

Net cash provided by financing activities for three months ended August 31, 2025, and 2024 was $200,000 and $200,000, respectively.

7

The Company will require additional financing to support its operations and to pursue its acquisition program. As of August 31, 2025, the Company had availability of $700,000 on its existing credit line with JBB due to a recent increase of its availability from its Lender. If the Company requires additional financing beyond what is available under its existing credit line, it does not have any committed sources of financing at this time. If it is unable to obtain financing, it will have to reduce or curtail its operations and acquisition program. There is no assurance that it will be able to obtain financing in the future, and even if financing is available, it may not be on terms acceptable to the Company.

To date, the funding during the past three fiscal years to support operations and facilitate some acquisitions has been provided by the largest shareholder of the Company. This individual does not have any legal obligation to continue to provide funding to the Company. Yet the majority owner has indicated a willingness, and provided some assurances, to selectively review and determine added funding for certain low risk initiatives on those oil and gas wells in which the Company has either a 100% or a majority working interest in order to increase its existing production. Our majority shareholder expects, but is not legally obligated, to provide funding for the Company’s capital expenditure program for fiscal year 2026. Such funding may be provided in the form of loans, issuance of equity or other means.

The consolidated financial statements of the Company have been prepared on a going concern basis. The Company will either have to increase its operating revenues to a point to be able to cover its operating expenses or obtain funding from other investors or lenders. There is no assurance that the Company will be able to increase its revenues or obtain funding. There is no assurance that the Company will be able to continue its operations. In such instances, investors will suffer a loss in the value of their investment in the Company.

On May 26, 2025, the Company entered into another amendment of its Loan Note with JBB to increase the line of credit by an additional $500,000, for a total of $4,800,000 and extend the maturity date for the original note and line of credit to March 31, 2027.

Subsequent to August 31, 2025, the Company drew down an additional $100,000 on its credit line.

Off-Balance Sheet Arrangements

As of August 31, 2025, we did not have any off-balance sheet arrangements as defined in Item 303 (a)(4)(ii) of Regulation S-K promulgated under the Securities Act of 1934.

Item 3. Quantitative and Qualitative Disclosures About Market Risk.

We are a smaller reporting company as defined by Rule 12b-2 of the Securities Exchange Act of 1934 and are not required to provide the information under this item.

Item 4. Controls and Procedures.

Evaluation of Disclosure Controls and Procedures

Disclosure controls and procedures are designed to ensure that information required to be disclosed in the reports filed or submitted under the Securities and Exchange Act of 1934, as amended (“Exchange Act”) is recorded, processed, summarized and reported, within the time period specified in the SEC’s rules and forms. Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed in the reports filed under the Exchange Act is accumulated and communicated to management, including the Chief Executive Officer and Chief Financial Officer, which in our case is the same individual. We carried out an evaluation, under the supervision and with the participation of our management, including our Chief Executive Officer and Chief Financial Officer, of the effectiveness of the design and operation of our disclosure controls and procedures as of August 31, 2025 (the “Evaluation Date”). Based upon the evaluation of our disclosure controls and procedures as of the Evaluation Date, the Chief Executive Officer and Chief Financial Officer concluded that our disclosure controls and procedures were not effective because of the identification of material weaknesses in our internal control over financial reporting that were disclosed in Item 9A. Controls and Procedures in our 2025 annual report on Form 10-K in Internal Control over Financial Reporting

There were no changes in our internal control over financial reporting during the six months ended August 31, 2025, that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

8

PART II - OTHER INFORMATION

Item 1. Legal Proceedings.

We are not currently involved in any litigation that we believe could have a material adverse effect on our financial condition or results of operations. There is no action, suit, proceeding, inquiry or investigation before or by any court, public board, government agency, self-regulatory organization or body pending or, to the knowledge of the executive officers of our company or any of our subsidiaries, threatened against or affecting our company, our common stock, any of our subsidiaries or of our companies or our subsidiaries’ officers or directors in their capacities as such, in which an adverse decision could have a material adverse effect.

Item 1A. Risk Factors.

You should carefully consider the risk factors in our Annual Report on Form 10-K filed with the Securities and Exchange Commission on May 28, 2025 (the “2025 10-K”), together with all of the other information included in this report, before investing in our common stock. Those risks and uncertainties encompass many of the risks that could affect our business and the value of our stock. Not all risks and uncertainties are described. Risks that we do not know about could occur and issues we now view as minor could become more important. If any of these risks actually occur, our business, financial condition or results of operations could be materially and adversely affected. In that case, the trading price of our common stock could decline, and you may lose all or part of your investment.

Item 2. Unregistered Sales of Equity Securities

None

Item 3. Defaults Upon Senior Securities.

None.

Item 4. Mine Safety Disclosures.

Not applicable.

Item 5. Other Information.

None.

Item 6. Exhibits.

Exhibit Number		Exhibit Title
31.1*		Certification of Principal Executive Officer pursuant to 18 U.S.C. Section 1350 as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
31.2*		Certification of Principal Financial Officer pursuant to 18 U.S.C. Section 1350 as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
32.1+		Certification of Principal Executive Officer pursuant to 18 U.S.C. Section 1350 as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
32.2+		Certification of Principal Financial Officer pursuant to 18 U.S.C. Section 1350 as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
101.INS *		Inline XBRL Instance Document
101.SCH*		Inline XBRL Taxonomy Schema
101.CAL*		Inline XBRL Taxonomy Calculation Linkbase
101.DEF*		Inline XBRL Taxonomy Definition Linkbase
101.LAB*		Inline XBRL Taxonomy Label Linkbase
101.PRE*		Inline XBRL Taxonomy Presentation Linkbase
104*		Cover Page Interactive Data File (formatted in Inline XBRL and contained in Exhibit 101)

* Filed herewith.

+ In accordance with SEC Release 33-8238, Exhibit 32.1 and 32.2 are being furnished and not filed.

9

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.

	Norris Industries, Inc.
Date: October 14, 2025	By:	/s/ Patrick L. Norris
		Patrick L. Norris
		Chief Executive Officer, Chief Financial Officer (Principal Executive Office, Principal Financial and Principal Accounting Officer) and Chairman of Board
Date: October 14, 2025	By:	/s/ Ross Henry Ramsey
		Ross Henry Ramsey
		President of the Oil and Gas Division and Director

10

FAQ

What were NRIS’s Q2 FY2026 revenues and net loss?

Revenue was $84,388 and net loss was $151,889 for the quarter ended August 31, 2025.

How did NRIS perform for the first six months of FY2026?

Six‑month revenue was $177,158 with a net loss of $319,297.

What is NRIS’s liquidity position as of August 31, 2025?

Cash was $40,323 with negative working capital of about $75,000.

How much related‑party debt does NRIS have?

Related‑party notes payable were $3,500,000 as of August 31, 2025.

What credit availability does NRIS report?

The company reported $700,000 available on its credit line and drew $100,000 after quarter‑end.

How many NRIS shares are outstanding?

As of September 15, 2025, there were 108,245,688 common shares outstanding.

Were NRIS’s disclosure controls effective?

No. Management concluded controls and procedures were not effective due to material weaknesses.