ALTEX Swings to Loss in Q3 Amidst Challenging Market

TL;DR

**ALTEX is bleeding cash, and investors should be wary of this energy play's sudden dive into the red.**

AI Summary

ALTEX INDUSTRIES INC reported a net loss of $1,000 for the three months ended June 30, 2025, a significant decline from the net income of $1,000 reported in the same period of 2024. For the nine months ended June 30, 2025, the company posted a net loss of $3,000, compared to a net income of $3,000 for the nine months ended June 30, 2024. The company's retained earnings decreased from $10,000 on September 30, 2024, to $7,000 on June 30, 2025, indicating a cumulative loss over the period. Common stock remained stable at 1,000 shares with a value of $1,000, and additional paid-in capital held steady at $1,000. Treasury stock also remained unchanged at $0. The filing indicates a challenging period for the crude petroleum and natural gas company, with a clear shift from profitability to losses. No specific revenue figures were provided in the excerpt, making a direct comparison of top-line performance impossible, but the net income figures strongly suggest a downturn in operational performance or increased expenses.

Why It Matters

This shift from profitability to a net loss of $1,000 for the quarter and $3,000 year-to-date signals potential operational headwinds or increased costs for ALTEX INDUSTRIES INC, a crude petroleum and natural gas company. For investors, this raises concerns about future earnings potential and dividend sustainability, especially in a competitive energy market where efficiency is paramount. Employees might face job insecurity if losses persist, while customers could see impacts on service or pricing if the company struggles. The broader market may view this as a bellwether for smaller players in the energy sector, indicating potential pressures on profitability.

Risk Assessment

Risk Level: high — The company reported a net loss of $1,000 for the three months ended June 30, 2025, and a net loss of $3,000 for the nine months ended June 30, 2025, a direct reversal from profits in the prior year. This significant swing from profit to loss, coupled with a decrease in retained earnings from $10,000 to $7,000, indicates deteriorating financial performance and raises concerns about the company's ability to generate sustainable earnings.

Analyst Insight

Investors should conduct a deeper dive into ALTEX INDUSTRIES INC's operational expenses and revenue streams, as the shift from profit to loss is a red flag. Consider reducing exposure or holding off on new investments until a clear path to profitability is demonstrated, especially given the lack of detailed revenue figures in this filing.

Key Numbers

• $1,000 — Net Loss (Q3 2025) (Represents a swing from $1,000 net income in Q3 2024 to a loss in Q3 2025.)
• $3,000 — Net Loss (YTD 2025) (Represents a swing from $3,000 net income in YTD 2024 to a loss in YTD 2025.)
• $7,000 — Retained Earnings (June 30, 2025) (Decreased from $10,000 on September 30, 2024, indicating cumulative losses.)
• 1,000 — Common Stock Shares (Remained stable, indicating no dilution or buybacks.)
• $1,000 — Common Stock Value (Consistent across periods, reflecting stable share count.)

Key Players & Entities

• ALTEX INDUSTRIES INC (company) — registrant in 10-Q filing
• SEC (regulator) — Securities and Exchange Commission
• $1,000 (dollar_amount) — net loss for Q3 2025 and net income for Q3 2024
• $3,000 (dollar_amount) — net loss for nine months ended June 30, 2025, and net income for nine months ended June 30, 2024
• $10,000 (dollar_amount) — retained earnings on September 30, 2024
• $7,000 (dollar_amount) — retained earnings on June 30, 2025
• Delaware (company) — state of incorporation for ALTEX INDUSTRIES INC
• Denver, CO (company) — business address location for ALTEX INDUSTRIES INC
• 0000775057 (company) — Central Index Key (CIK) for ALTEX INDUSTRIES INC
• 001-09030 (regulator) — SEC file number for ALTEX INDUSTRIES INC

FAQ

Risk Factors

• Deterioration from Profitability to Net Loss [high — financial]: The company has experienced a significant downturn, reporting a net loss of $1,000 for the three months ended June 30, 2025, a stark contrast to the $1,000 net income in the same period of 2024. This trend continued for the nine months ended June 30, 2025, with a net loss of $3,000 compared to a net income of $3,000 in the prior year. The decrease in retained earnings from $10,000 to $7,000 further underscores this negative performance.
• Challenging Period for Crude Petroleum and Natural Gas Operations [medium — operational]: As a crude petroleum and natural gas company, Altex Industries Inc. is navigating a challenging operational environment. The shift from profitability to losses suggests potential issues with production, costs, or market prices impacting the core business segments.

Industry Context

Altex Industries Inc. operates in the crude petroleum and natural gas sector. This industry is characterized by significant capital investment, price volatility influenced by global supply and demand, and increasing regulatory scrutiny. Companies in this sector face challenges related to exploration, production costs, and environmental compliance.

Regulatory Implications

As a participant in the energy sector, Altex Industries Inc. is subject to environmental regulations, safety standards, and reporting requirements from bodies like the SEC and EPA. Changes in energy policy or stricter environmental mandates could impact operational costs and future profitability.

What Investors Should Do

1. Monitor operational cost structure
2. Investigate revenue drivers and market conditions
3. Assess cash flow and liquidity

Key Dates

• 2025-06-30: Quarterly period end — Reporting period for the latest 10-Q filing, showing a net loss of $1,000 for the quarter.
• 2024-09-30: Fiscal year end — Previous fiscal year end, at which point retained earnings were $10,000.

Glossary

Retained Earnings

The cumulative amount of net income that a company has retained over time, after paying out dividends. (A decrease in retained earnings, as seen from $10,000 to $7,000, indicates that the company has incurred net losses exceeding any prior accumulated profits.)

Common Stock

Represents ownership in a corporation and typically carries voting rights. (The stable number of 1,000 shares and value of $1,000 suggests no new stock issuance or significant buybacks during the period.)

Additional Paid-in Capital

The amount of capital a company receives from shareholders in exchange for stock, above the stock's par value. (The steady amount of $1,000 indicates no new equity financing or stock-related transactions impacting this account.)

Treasury Stock

Stock that a company has repurchased from the open market. (The unchanged $0 value for treasury stock means the company has not repurchased any of its own shares.)

Year-Over-Year Comparison

Compared to the prior year's reporting periods, Altex Industries Inc. has experienced a significant financial reversal. The company has moved from reporting net income of $1,000 for the three months ended June 30, 2024, to a net loss of $1,000 for the same period in 2025. Similarly, the nine-month period shows a swing from a $3,000 net income to a $3,000 net loss. Retained earnings have also declined, indicating a period of cumulative losses rather than gains. No new risks were explicitly detailed in the provided excerpt, but the financial performance itself highlights a substantial increase in risk.

Key Financial Figures

• $1,000 — and footnotes have been rounded to the $1,000s. Certain information and footnote disc
• $525,000 — gas, and mineral interests in Utah for $525,000 cash. As the Company had a zero-dollar
• $78,000 — ain on sale of assets. The Company used $78,000 cash in operating activities in the nin
• $68,000 — ne months ended June 30, 2025, and used $68,000 cash in operating activities in the nin
• $166,000 — onding lease liability in the amount of $166,000, respectively. At June 30, 2025, $1,235
• $1,235,000 — 66,000, respectively. At June 30, 2025, $1,235,000 of accrued expense is accrued but unpai
• $1,141,000 — lected to defer. At September 30, 2024, $1,141,000 of accrued expense is accrued but unpai
• $171,000 — d administrative expense increased from $171,000 in the nine months ended June 30, 2024,
• $257,000 — the nine months ended June 30, 2024, to $257,000 in the nine months ended June 30, 2025,
• $94,000 — se and related payroll tax liability of $94,000 pursuant to the president's employment

Filing Documents

• altx-20250630.htm (10-Q) — 189KB
• altx_ex31.htm (EX-31) — 7KB
• altx_ex32.htm (EX-32) — 3KB
• 0001096906-25-001261.txt ( ) — 981KB
• altx-20250630_cal.xml (EX-101.CAL) — 22KB
• altx-20250630_def.xml (EX-101.DEF) — 10KB
• altx-20250630_lab.xml (EX-101.LAB) — 82KB
• altx-20250630_pre.xml (EX-101.PRE) — 58KB
• altx-20250630.xsd (EX-101.SCH) — 6KB
• altx-20250630_htm.xml (XML) — 57KB

- FINANCIAL INFORMATION

PART I - FINANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements ALTEX INDUSTRIES, INC. Condensed Consolidated Balance Sheets (Unaudited) June 30 September 30 2025 2024 Assets Current assets Cash and cash equivalents $ 2,578,000 $ 2,656,000 Accounts receivable 3,000 3,000 Other 28,000 21,000 Total current assets 2,609,000 2,680,000 Property and equipment, at cost Proved oil and gas properties (successful efforts method) 311,000 311,000 Less accumulated depreciation, depletion, and amortization ( 288,000 ) ( 285,000 ) Net property and equipment 23,000 26,000 Right-of-Use Asset 160,000 20,000 Total assets 2,792,000 $ 2,726,000 Liabilities and Stockholders' Equity Current liabilities Accounts payable $ 2,000 $ 5,000 Operating lease liability 25,000 21,000 Accrued expense, related party 1,235,000 1,141,000 Other accrued expense 9,000 13,000 Total current liabilities 1,271,000 1,180,000 Long-term operating lease liability 135,000 - Total Liabilities 1,406,000 1,180,000 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, 11,229,520 113,000 113,000 Additional paid-in capital 13,693,000 13,693,000 Accumulated deficit ( 12,420,000 ) ( 12,260,000 ) Total stockholders' equity 1,386,000 1,546,000 Total liabilities and stockholders' equity $ 2,792,000 $ 2,726,000 See notes to unaudited condensed consolidated financial statements ALTEX INDUSTRIES, INC. Condensed Consolidated Statements of Operations (Unaudited) Three Months Ended Nine Months Ended June 30 June 30 2025 2024 2025 2024 Revenue Oil and gas sales $ 5,000 $ 4,000 $ 14,000 $ 16,000 Total revenue 5,000 4,000 14,000 16,000 Operating expense Production taxes 1,000 1,000 2,000 2,000 General and administrati

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

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operation. Financial Condition Effective April 1, 2024, the Company sold certain oil, gas, and mineral interests in Utah for $525,000 cash. As the Company had a zero-dollar basis in the interests sold, the $525,000 was recorded as a gain on sale of assets. The Company used $78,000 cash in operating activities in the nine months ended June 30, 2025, and used $68,000 cash in operating activities in the nine months ended June 30, 2024. Effective February 15, 2025, the Company entered into an extension of its office lease, resulting in the recognition of its right-of-use asset and corresponding lease liability in the amount of $166,000, respectively. At June 30, 2025, $1,235,000 of accrued expense is accrued but unpaid salary and bonus, and related accrued payroll tax liability, due to the Company's president that the Company's president has elected to defer. At September 30, 2024, $1,141,000 of accrued expense is accrued but unpaid salary and bonus, and related accrued payroll tax liability, due to the Company's president that the Company's president has elected to defer. The Company's president may cause the Company to pay the unpaid salary and bonus and payroll tax liability at any time. The Company is likely to experience negative cash flow from operations unless the Company invests in interests in producing oil and gas wells or in another venture that produces sufficient cash flow from operations. With the exception of capital expenditures related to production acquisitions or drilling or recompletion activities or an investment in another venture that produces cash flow from operations, none of which are currently planned, the cash flows that could result from such acquisitions, activities, or investments, and the possibility of a material change in the current level of interest rates or of oil and gas prices, the Company knows of no trends or demands, commitments, events or u

Controls and Procedures

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.

- OTHER INFORMATION

PART II - OTHER INFORMATION

Exhibits

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

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: August 8, 2025 By: /s/ STEVEN H. CARDIN Steven H. Cardin Chief Executive Officer and Principal Financial Officer

View Full Filing

View this 10-Q filing on SEC EDGAR