Altex Industries Inc. Files 2024 10-K

TL;DR

Altex 10-K filed. Full FY24 financials out.

AI Summary

Altex Industries Inc. filed its 2024 10-K report for the fiscal year ending September 30, 2024. The company, operating in the Crude Petroleum & Natural Gas sector, is headquartered in Denver, Colorado. The filing details financial performance and operational status for the period.

Why It Matters

This filing provides investors and stakeholders with a comprehensive overview of Altex Industries Inc.'s financial health and strategic direction for the fiscal year 2024.

Risk Assessment

Risk Level: medium — As a company in the volatile crude petroleum and natural gas sector, Altex Industries Inc. is subject to significant market and operational risks.

Key Players & Entities

• ALTEX INDUSTRIES INC (company) — Filer
• 0000775057 (company) — Central Index Key
• DENVER (location) — Business Address City
• CO (location) — Business Address State
• 80206-4084 (location) — Business Address Zip
• 3032659312 (phone_number) — Business Phone
• 20240930 (date) — Fiscal Year End
• 20241129 (date) — Filing Date

FAQ

Key Financial Figures

• $0.01 — (g) of the Act: Common Stock, par value $0.01 per share Indicate by check mark if th
• $73.67 — il (Bbls) Gas (Mcf) 2024 300 400 $73.67 $2.22 $0.00 2023 400 500 $69.76
• $2.22 — s) Gas (Mcf) 2024 300 400 $73.67 $2.22 $0.00 2023 400 500 $69.76 $5.27
• $0.00 — (Mcf) 2024 300 400 $73.67 $2.22 $0.00 2023 400 500 $69.76 $5.27 $0.00
• $69.76 — $73.67 $2.22 $0.00 2023 400 500 $69.76 $5.27 $0.00 2022 300 500 $83.00
• $5.27 — $2.22 $0.00 2023 400 500 $69.76 $5.27 $0.00 2022 300 500 $83.00 $5.65
• $83.00 — $69.76 $5.27 $0.00 2022 300 500 $83.00 $5.65 $0.00 Item 3. Legal Proceeding
• $5.65 — $5.27 $0.00 2022 300 500 $83.00 $5.65 $0.00 Item 3. Legal Proceedings. No
• $0.20 — 4 through September 30, 2024 118,501 $0.20 -- -- Total 118,501 $0.20 -- --
• $78,000 — ion In FY24 operating activities used $78,000 cash, and the Company used $23,000 cash
• $23,000 — used $78,000 cash, and the Company used $23,000 cash to acquire 118,501 shares of its c
• $58,000 — tock. In FY23 operating activities used $58,000 cash, and the Company used $68,000 to a
• $68,000 — used $58,000 cash, and the Company used $68,000 to acquire 663,380 shares of its common
• $525,000 — gas, and mineral interests in Utah for $525,000 cash. Consequently, cash balances incre
• $424,000 — . Consequently, cash balances increased $424,000 in FY24 and decreased $126,000 in FY23.

Filing Documents

• altx-20240930.htm (10-K) — 278KB
• altx_ex31.htm (EX-31) — 8KB
• altx_ex32.htm (EX-32) — 3KB
• 0001096906-24-002215.txt ( ) — 2119KB
• altx-20240930_cal.xml (EX-101.CAL) — 22KB
• altx-20240930_def.xml (EX-101.DEF) — 32KB
• altx-20240930_lab.xml (EX-101.LAB) — 137KB
• altx-20240930_pre.xml (EX-101.PRE) — 125KB
• altx-20240930.xsd (EX-101.SCH) — 34KB
• altx-20240930_htm.xml (XML) — 185KB

Business

Item 1. Business. Altex Industries, Inc. (or the "Registrant" or the "Company," each of which terms, when used herein, refer to Altex Industries, Inc. and/or its subsidiary) is a holding company with one full-time employee that was incorporated in Delaware in 1985. Through its operating subsidiary, AOC, the Company currently owns interests in onshore oil and gas properties, has bought and sold producing oil and gas properties, and, to a lesser extent, has participated in the drilling of exploratory and development wells, and in recompletions of existing wells. All of AOC's interests are in properties operated by others. An interest owner in a property not operated by that interest owner must rely on information regarding the property provided by the operator, even though there can be no assurance that such information is complete, accurate, or current. In addition, an owner of a working interest in a property is potentially responsible for 100% of all liabilities associated with that property, regardless of the size of the working interest actually owned. The operators of producing properties in which AOC has an interest sell produced oil and gas to refiners, pipeline operators, and processing plants. If a refinery, pipeline, or processing plant that purchases such production were taken out of service, the operator could be forced to halt the production that is purchased by such refinery, pipeline, or plant. Although many entities produce oil and gas, competitive factors play a material role in AOC's production operations only to the extent that such factors affect demand for and prices of oil and gas and demand for, supply of, and prices of oilfield services. The sale of oil and gas is regulated by Federal, state, and local agencies, and AOC is also subject to Federal, state, and local laws and regulations relating to the environment. These laws and regulations generally provide for control of pollutants released into the environment and require responsible

Risk Factors

Item 1A. Risk Factors. Not applicable.

Unresolved Staff Comments

Item 1B. Unresolved Staff Comments. Not applicable. 1

Cybersecurity

Item 1C. Cybersecurity. The Company implemented commercially available defenses against cybersecurity threats when it began relying on the internet 30 years ago. The Company does not have formal processes for identifying cybersecurity risks associated with third-party service providers. A successful attack on the Company could result in a delay in required filings with the SEC and in financial losses from attacks on bank accounts. The board of directors relies on the Company's president to identify material risks and to implement reasonable defenses. The president informs the board about such risks. The president receives direct and immediate notification of cybersecurity incidents and personally monitors the prevention, detection, mitigation, and remediation of cybersecurity incidents. The president does not have formal training in cybersecurity.

Properties

Item 2. Properties. The Company's estimated reserves at September 30, 2024, are 2,000 barrels of proved, developed oil reserves associated with the Company's 4.4% override in the Glo Field in Campbell County, Wyoming. The reserve estimate is prepared by the Company's registered profession petroleum engineer; management supplies the engineer with ownership and revenue data, and reviews the reserve estimate for reasonableness. All the Company's interests in oil and gas properties are non-working interests. The Company did not participate in the drilling of any wells during the year ended September 30, 2023 (FY23) or the year ended September 30, 2024 (FY24). At November 29, 2024, the Company was not engaged in any oil and gas operations. The Company owns very small mineral interests in Utah. All the Company's production is located in Utah and Wyoming. Production Net Production Average Price Average Production Cost Per Equivalent Barrel Fiscal Year Oil (Bbls) Gas (Mcf) Oil (Bbls) Gas (Mcf) 2024 300 400 $73.67 $2.22 $0.00 2023 400 500 $69.76 $5.27 $0.00 2022 300 500 $83.00 $5.65 $0.00

Legal Proceedings

Item 3. Legal Proceedings. None.

Mine Safety Disclosures

Item 4. Mine Safety Disclosures. Not applicable. PART II

Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities

Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities. The Company's common stock is traded on OTC Pink under the symbol ALTX. At November 29, 2024, there were approximately 3,400 holders of record of the Company's common stock, excluding entities whose stock is held by clearing agencies. The Company has not paid a dividend during the last two fiscal years. The Company has no plan or program for the purchase of shares, and, except for Mr. Cardin's employment agreement, the Company has no compensation plans under which equity securities of the registrant are authorized for issuance. 2 Issuer Purchases of Equity Securities Period (a) Total number of shares (or units) purchased (b) Average price paid per share (or unit) (c) Total number of shares (or units) purchased as part of publicly announced plans or programs (d) Maximum number (or approximate dollar value) of shares (or units) that may yet be purchased under the plans or programs July 1, 2024 Through July 31, 2024 -- -- -- -- August 1, 2024 through August 31, 2024 -- -- -- -- September 1, 2024 through September 30, 2024 118,501 $0.20 -- -- Total 118,501 $0.20 -- --

Reserved

Item 6. Reserved. Not applicable.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations Financial Condition In FY24 operating activities used $78,000 cash, and the Company used $23,000 cash to acquire 118,501 shares of its common stock. In FY23 operating activities used $58,000 cash, and the Company used $68,000 to acquire 663,380 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 increased $424,000 in FY24 and decreased $126,000 in FY23. 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 wor

Quantitative and Qualitative Disclosures About Market Risk

Item 7A. Quantitative and Qualitative Disclosures About Market Risk. Not applicable.

Financial Statements and Supplementary Data

Item 8. Financial Statements and Supplementary Data. The consolidated financial statements follow the signature page.

Changes in and Disagreements with Accountants on Accounting and Financial Disclosure

Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure. None.

Controls and Procedures

Item 9A. 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. 4 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 which could significantly affect internal controls subsequent to the date the Company carried out its evaluation.

Other Information

Item 9b. Other Information None.

Disclosure Regarding Foreign Jurisdictions that Prevent Inspections

Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections Not applicable. PART III

Directors, Executive Officers, and Corporate Governance

Item 10. Directors, Executive Officers, and Corporate Governance. Steven Cardin, 74, an economist, formerly with The Conference Board and the consulting firm, National Economics Research Associates, has been Chairman and CEO of the Company since 1985, and a Director since 1984. Jeffrey Chernow, 73, a lawyer, formerly Director of Enforcement in the Division of Securities, State of Maryland, Office of the Attorney General, has been in private practice in Maryland for over five years, and a Director since 1989. Stephen Fante, 68, a CPA, was Chairman and CEO of IMS, which provided computerized accounting systems to the oil and gas industry and was a reseller of microcomputer products to the Fortune 1000, and was Chairman and CEO of Seca Graphics, Inc., which provided design and mapping services and software to the cable television and telecommunications industries. Mr. Fante has been a private investor for the last five years. Mr. Fante has been a Director since 1989. Messrs. Chernow's, Cardin's, and Fante's terms as Directors continue until their successors are duly elected and qualified. The Company has adopted a code of ethics that applies to its principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions.

Executive Compensation

Item 11. Executive Compensation. The following table sets forth the compensation earned by the Company's only executive officer during the last two fiscal years. Summary Compensation Table Name and Principal Position Year Salary ($) Bonus ($) Total ($) Steven Cardin, CEO 2024 3,000 -- 3,000 Steven Cardin, CEO 2023 3,000 63,000 66,000 Effective October 1, 2021, the Company renewed its Employment Agreement with Mr. Cardin. The Agreement has an initial term of five years and provides an annual base salary equal to the maximum annual contribution to a Health Flexible Spending Arrangement (FSA) and an annual bonus of no less than 20% of the Company's earnings before tax, payable, at Mr. Cardin's election, in either cash or common stock of the Company at then fair market value. The 5 Company will match any contribution that Mr. Cardin makes to the Company's FSA. Mr. Cardin has deferred payment of the bonus earned in 2023, but he may cause the Company to pay the bonus in cash or common stock at any time. The Employment Agreement also provides that, in the event the Company terminates Mr. Cardin's employment by reason of his permanent disability, the Company shall (1) pay Mr. Cardin a total sum, payable in 24 equal monthly installments, equal to 50% of the base salary to which he would have been entitled had he performed his duties for the Company for a period of two years after his termination, less the amount of any disability insurance benefits he receives under policies maintained by the Company for his benefit, and (2) continue to provide Mr. Cardin with all fringe benefits provided to him at the time of his permanent disability for a period of two years following such permanent disability. The Employment Agreement also provides that, in the event the Company terminates Mr. Cardin's employment in breach of the agreement, or in the event that Mr. Cardin terminates his employment because his circumstances of employment shall have changed subs

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters The following table sets forth information concerning each person who, as of November 29, 2024, is known to the Company to be the beneficial owner of more than five percent of the Company's common stock and information regarding common stock of the Company beneficially owned, as of November 29, 2024, by all Directors and executive officers and by all Directors and executive officers as a group. Name and Address of Beneficial Owner Shares of Common Stock Beneficially Owned Percent of Class Steven Cardin (Director and Executive Officer) 700 Colorado Blvd #273 Denver CO 80206-4084 7,233,866 64.4% All Directors and Executive Officers as a Group (1 Person) 7,233,866 64.4% Except for Mr. Cardin's right to receive a bonus as common stock, the Company has no compensation plan under which equity securities of the company are authorized for issuance.

Certain Relationships and Related Transactions, and Director Independence

Item 13. Certain Relationships and Related Transactions, and Director Independence. Messrs. Fante and Chernow are both independent under the NASDAQ independence standards.

Principal Accountant Fees and Services

Item 14. Principal Accountant Fees and Services Audit Fees. Billed for FY24: $19,550. Billed for FY23: $17,975. Audit-Related Fees. None. Tax Fees. None. All Other Fees. None. The Company does not engage an accountant to render audit or non-audit services unless the engagement is pre-approved by the Company's Audit Committee. 7 PART IV

Exhibits and Financial Statement Schedules

Item 15. Exhibits and Financial Statement Schedules 3(i) Articles of Incorporation - Incorporated herein by reference to Exhibit B to August 20, 1985 Proxy Statement 3(ii) Bylaws - Incorporated herein by reference to Exhibit C to August 20, 1985 Proxy Statement 10 Employment Agreement between the Company and Steven Cardin – Incorporated herein by reference to Form 10-K for the fiscal year ended September 30, 2021 14 Code of Ethics - Incorporated herein by reference to Form 10-K for fiscal year ended September 30, 2003 21 List of subsidiaries - Incorporated herein by reference to Form 10-K for fiscal year ended September 30, 1997 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.

Form 10-K Summary

Item 16. Form 10-K Summary. None. 8

SIGNATURES

SIGNATURES Pursuant to the requirements of Section 13 or 15(d) 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. /s/ STEVEN CARDIN By: Steven Cardin, CEO Date: November 29, 2024 Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated. /s/ STEVEN CARDIN By: Steven Cardin, Director, Principal Executive Officer, Principal Financial Officer, and Principal Accounting Officer Date: November 29, 2024 /s/ JEFFREY CHERNOW By: JEFFREY CHERNOW, Director Date: November 29, 2024 9 REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM To the Board of Directors and Shareholders Altex Industries, Inc. Opinion on the Financial Statements We have audited the accompanying consolidated balance sheets of Altex Industries, Inc. (the Company) as of September 30, 2024 and 2023, and the related consolidated statements of operations, stockholders' equity, and cash flows for the years then ended, and the related notes (collectively referred to as the "financial statements"). In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Company as of September 30, 2024 and 2023, and the results of its operations and its cash flows for the years then ended in conformity with accounting principles generally accepted in the United States of America. Basis for Opinion These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the Company's consolidated financial statements based on our audit. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Compa

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