BRN 10-Q

Barnwell Industries Inc (BRN)

10-Q 2026-05-21 For: 2026-03-31

View Original

Added on May 21, 2026


Delaware						72-0496921
(State or other jurisdiction of incorporation or organization)						(I.R.S. Employer Identification No.)

24 Greenway Plaza, Suite 1800Q, Houston, Texas						77046
(Address of principal executive offices)						(Zip code)

(713) 730-7026
(Registrant’s telephone number, including area code)


Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, $0.50 par value	BRN	NYSE American


PART I.	FINANCIAL INFORMATION:
Item 1.	Financial Statements (Unaudited)
	Condensed Consolidated Balance Sheets - March 31, 2026 and September 30, 2025	3
	Condensed Consolidated Statements of Operations - three and six months ended March 31, 2026 and 2025	4
	Condensed Consolidated Statements of Comprehensive Loss - three and six months ended March 31, 2026 and 2025	5
	Condensed Consolidated Statements of Equity - three and six months ended March 31, 2026 and 2025	6
	Condensed Consolidated Statements of Cash Flows - six months ended March 31, 2026 and 2025	8
	Notes to Condensed Consolidated Financial Statements	9
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	33
I tem 3.	Quantitative and Qualitative Disclosures about Market Risk	47
I tem 4 .	C ontrols and Pro ce dures	47
P ART II.	O THER IN FORMATION:
I tem 1.	L egal Proceedings	49
I tem 1A.	R is k Factors	49
Item 2.	Un registered S ales of E quity S ecurities and U se of Proceeds	49
Item 3.	D efaults Upon Senior Se curities	49
I tem 4.	M ine Safety Disclosure	49
I tem 5.	O ther In formation	50
Item 6.	Exhibits	50
	S ignature	51
	I ndex to Exhibits	52


	March 31, 2026		September 30, 2025
ASSETS
Current assets:
Cash and cash equivalents	$	4,016,000	$	2,886,000

Accounts and other receivables, net of allowance for credit losses of: $49,000 at March 31, 2026; $49,000 at September 30, 2025	1,811,000		1,621,000


Note receivable	150,000		300,000
Other current assets	444,000		423,000

Total current assets	6,421,000		5,230,000

Asset for retirement benefits	6,184,000		5,928,000
Investments	14,000		—
Operating lease right-of-use assets	98,000		145,000
Other non-current assets	314,000		347,000
Property and equipment:
Proved oil and natural gas properties (full cost method)	74,780,000		74,511,000


Other property and equipment	292,000		500,000
Total property and equipment	75,072,000		75,011,000
Accumulated depletion, impairment, depreciation, and amortization	(66,556,000)		(65,849,000)
Total property and equipment, net	8,516,000		9,162,000

Total assets	$	21,547,000	$	20,812,000

LIABILITIES AND EQUITY
Current liabilities:
Accounts payable	$	2,126,000	$	1,936,000
Accounts payable - related party	92,000		246,000
Accrued capital expenditures	157,000		185,000
Accrued compensation	178,000		264,000
Accrued operating and other expenses	896,000		1,022,000

Current portion of asset retirement obligation	522,000		613,000
Other current liabilities	298,000		460,000

Total current liabilities	4,269,000		4,726,000


Operating lease liabilities	67,000		93,000

Liability for retirement benefits	1,772,000		1,791,000
Asset retirement obligation	7,262,000		7,162,000
Deferred income tax liabilities	18,000		18,000
Total liabilities	13,388,000		13,790,000
Commitments and contingencies (Note 16)
Equity:
Common stock, par value $0.50 per share; authorized, 40,000,000 shares: 13,673,117 issued at March 31, 2026; 10,241,434 issued at September 30, 2025	6,837,000		5,121,000
Additional paid-in capital	10,011,000		8,039,000
(Accumulated deficit) retained earnings	(9,084,000)		(6,508,000)
Accumulated other comprehensive income, net	2,654,000		2,642,000
Treasury stock, at cost: 167,900 shares at March 31, 2026 and September 30, 2025	(2,286,000)		(2,286,000)
Total stockholders’ equity	8,132,000		7,008,000
Non-controlling interests	27,000		14,000
Total equity	8,159,000		7,022,000
Total liabilities and equity	$	21,547,000	$	20,812,000


	Three months ended March 31,				Six months ended March 31,
	2026		2025		2026		2025
Revenues:
Oil and natural gas	$	2,483,000	$	3,543,000	$	5,113,000	$	7,440,000

Sale of interest in leasehold land	—		—		70,000		—
Gas processing and other	52,000		26,000		98,000		63,000
	2,535,000		3,569,000		5,281,000		7,503,000
Costs and expenses:
Oil and natural gas operating	1,843,000		1,986,000		3,914,000		4,482,000

General and administrative	1,521,000		2,162,000		3,137,000		3,325,000
Depletion, depreciation, and amortization	561,000		754,000		1,153,000		1,658,000
Impairment of assets	—		52,000		—		665,000
Foreign currency loss (gain)	58,000		(10,000)		11,000		341,000
Interest expense	—		1,000		—		1,000



	3,983,000		4,945,000		8,215,000		10,472,000
Loss from continuing operations before equity in income of affiliates and income taxes	(1,448,000)		(1,376,000)		(2,934,000)		(2,969,000)
Equity in income of affiliates	338,000		—		338,000		—
Loss from continuing operations before income taxes	(1,110,000)		(1,376,000)		(2,596,000)		(2,969,000)
Income tax (benefit) provision	6,000		162,000		(68,000)		169,000
Net loss from continuing operations	(1,116,000)		(1,538,000)		(2,528,000)		(3,138,000)
Net earnings from discontinued operations	—		331,000		—		12,000
Net loss	(1,116,000)		(1,207,000)		(2,528,000)		(3,126,000)
Less: Net earnings (loss) attributable to non-controlling interests	34,000		—		48,000		(2,000)
Net loss attributable to Barnwell Industries, Inc.	$	(1,150,000)	$	(1,207,000)	$	(2,576,000)	$	(3,124,000)
Basic and diluted loss per common share attributable to Barnwell Industries, Inc. stockholders:
Net loss from continuing operations attributable to Barnwell Industries, Inc.	$	(0.09)	$	(0.15)	$	(0.22)	$	(0.31)
Net earnings from discontinued operations	—		0.03		—		—
Net loss attributable to Barnwell Industries, Inc.	$	(0.09)	$	(0.12)	$	(0.22)	$	(0.31)
Weighted-average number of common shares outstanding:
Basic and diluted	12,672,012		10,053,534		11,875,997		10,050,319


	Shares Outstanding	Common Stock		Additional Paid-In Capital		Retained Earnings (Accumulated Deficit)		Accumulated Other Comprehensive Income		Treasury Stock		Non-controlling Interests		Total Equity
Balance at December 31, 2024	10,053,534	$	5,111,000	$	7,746,000	$	(1,322,000)	$	2,036,000	$	(2,286,000)	$	20,000	$	11,305,000
Net loss	—	—		—		(1,207,000)		—		—		—		(1,207,000)
Foreign currency translation adjustments, net of taxes of $0	—	—		—		—		(3,000)		—		—		(3,000)


Share-based compensation	—	—		60,000		—		—		—		—		60,000
Issuance of common stock for restricted stock units vested	—	—		—		—		—		—		—		—







Balance at March 31, 2025	10,053,534	$	5,111,000	$	7,806,000	$	(2,529,000)	$	2,033,000	$	(2,286,000)	$	20,000	$	10,155,000

Balance at December 31, 2025	12,538,064	$	6,353,000	$	9,410,000	$	(7,934,000)	$	2,615,000	$	(2,286,000)	$	28,000	$	8,186,000
Net loss	—	—		—		(1,150,000)		—		—		34,000		(1,116,000)
Foreign currency translation adjustments, net of taxes of $0	—	—		—		—		39,000		—		—		39,000
Distributions to non-controlling interests	—	—		—		—		—		—		(35,000)		(35,000)
Share-based compensation	—	—		128,000		—		—		—		—		128,000

Issuance of common stock for restricted stock units vested	40,750	20,000		(20,000)		—		—		—		—		—
Issuance of common stock, net of costs	926,403	464,000		493,000		—		—		—		—		957,000




Balance at March 31, 2026	13,505,217	$	6,837,000	$	10,011,000	$	(9,084,000)	$	2,654,000	$	(2,286,000)	$	27,000	$	8,159,000


	Pension Plan				SERP
	Three months ended March 31,
	2026		2025		2026		2025

Interest cost	$	102,000	$	97,000	$	26,000	$	24,000
Expected return on plan assets	(217,000)		(200,000)		—		—

Amortization of net actuarial gain	(13,000)		—		—		—

Net periodic benefit (income) cost	$	(128,000)	$	(103,000)	$	26,000	$	24,000


	Pension Plan				SERP
	Six months ended March 31,
	2026		2025		2026		2025

Interest cost	$	204,000	$	195,000	$	52,000	$	47,000
Expected return on plan assets	(435,000)		(400,000)		—		—

Amortization of net actuarial gain	(25,000)		—		—		—


Net periodic benefit (income) cost	$	(256,000)	$	(205,000)	$	52,000	$	47,000



	March 31, 2026		September 30, 2025
Oil and natural gas (1)
Canada	$	8,516,000	$	11,118,000



Other:
Cash and cash equivalents	4,016,000		2,886,000


Asset for retirement benefits	6,184,000		5,928,000
Corporate and other	2,831,000		880,000
Total	$	21,547,000	$	20,812,000


	March 31, 2026		September 30, 2025
United States	$	6,198,000	$	5,965,000
Canada	8,928,000		9,617,000
Total	$	15,126,000	$	15,582,000


		Three months ended March 31, 2026
		Oil and natural gas		Land investment		Other		Total
Revenue streams:
	Oil	$	1,783,000	$	—	$	—	$	1,783,000
	Natural gas	469,000		—		—		469,000
	Natural gas liquids	231,000		—		—		231,000


	Other	—		—		14,000		14,000
	Total revenues before interest income	$	2,483,000	$	—	$	14,000	$	2,497,000
Geographical regions:
	United States	$	—	$	—	$	—	$	—
	Canada	2,483,000		—		14,000		2,497,000
	Total revenues before interest income	$	2,483,000	$	—	$	14,000	$	2,497,000
Timing of revenue recognition:
	Goods transferred at a point in time	$	2,483,000	$	—	$	14,000	$	2,497,000


		Three months ended March 31, 2025
		Oil and natural gas		Land investment		Other		Total
Revenue streams:
	Oil	$	2,601,000	$	—	$	—	$	2,601,000
	Natural gas	488,000		—		—		488,000
	Natural gas liquids	454,000		—		—		454,000


	Other	—		—		22,000		22,000
	Total revenues before interest income	$	3,543,000	$	—	$	22,000	$	3,565,000
Geographical regions:
	United States	$	376,000	$	—	$	—	$	376,000
	Canada	3,167,000		—		22,000		3,189,000
	Total revenues before interest income	$	3,543,000	$	—	$	22,000	$	3,565,000
Timing of revenue recognition:
	Goods transferred at a point in time	$	3,543,000	$	—	$	22,000	$	3,565,000


		Six months ended March 31, 2026
		Oil and natural gas		Land investment		Other		Total
Revenue streams:
	Oil	$	3,686,000	$	—	$	—	$	3,686,000
	Natural gas	940,000		—		—		940,000
	Natural gas liquids	487,000		—		—		487,000


	Other	—		70,000		45,000		115,000
	Total revenues before interest income	$	5,113,000	$	70,000	$	45,000	$	5,228,000
Geographical regions:
	United States	$	—	$	70,000	$	—	$	70,000
	Canada	5,113,000		—		45,000		5,158,000
	Total revenues before interest income	$	5,113,000	$	70,000	$	45,000	$	5,228,000
Timing of revenue recognition:
	Goods transferred at a point in time	$	5,113,000	$	70,000	$	45,000	$	5,228,000


		Six months ended March 31, 2025
		Oil and natural gas		Land investment		Other		Total
Revenue streams:
	Oil	$	5,744,000	$	—	$	—	$	5,744,000
	Natural gas	837,000		—		—		837,000
	Natural gas liquids	859,000		—		—		859,000

	Contingent residual payments	—		—		—		—
	Other	—		—		33,000		33,000
	Total revenues before interest income	$	7,440,000	$	—	$	33,000	$	7,473,000
Geographical regions:
	United States	$	731,000	$	—	$	—	$	731,000
	Canada	6,709,000		—		33,000		6,742,000
	Total revenues before interest income	$	7,440,000	$	—	$	33,000	$	7,473,000
Timing of revenue recognition:
	Goods transferred at a point in time	$	7,440,000	$	—	$	33,000	$	7,473,000


	March 31, 2026		September 30, 2025		September 30, 2024
Accounts receivables from contracts with customers	$	1,051,000	$	913,000	$	1,472,000



Number of shares			185,000
Expected volatility			62.0%
Expected dividends			None
Expected term (in years)			6.0
Risk-free interest rate			3.61%
Expected forfeitures			None
Fair value per share			$0.73


Options	Shares	Weighted- Average Exercise Price		Weighted- Average Remaining Contractual Term	Aggregate Intrinsic Value
Outstanding at October 1, 2025	415,000	$	3.38
Granted	185,000	1.21
Exercised	—	—
Expired/Forfeited	(160,000)	3.45
Outstanding at March 31, 2026	440,000	$	2.44	6.8	$	—
Exercisable at March 31, 2026	255,000	$	3.33	4.9	$	—


Restricted Stock Units	Shares	Weighted-Average Grant Date Fair Value
Nonvested at October 1, 2025	154,174	$	2.07
Granted	363,441	1.22
Vested	(40,750)	1.43
Forfeited	—	—
Nonvested at March 31, 2026	476,865	$	1.48


	Six months ended March 31,
	2026		2025
Supplemental disclosure of cash flow information:
Cash paid during the period for:

Income taxes, net of refunds	$	—	$	168,000


	Average Price Per Unit
	Three months ended				Increase
	March 31,				(Decrease)
	2026		2025		$		%
Natural Gas (Mcf)*	$	2.11	$	1.84	$	0.27	15	%
Oil (Bbls)**	$	55.66	$	61.02	$	(5.36)	(9	%)
Natural gas liquids (Bbls)**	$	28.88	$	32.43	$	(3.55)	(11	%)


	Average Price Per Unit
	Six months ended				Increase
	March 31,				(Decrease)
	2026		2025		$		%
Natural Gas (Mcf)*	$	1.94	$	1.43	$	0.51	36	%
Oil (Bbls)**	$	54.00	$	63.39	$	(9.39)	(15	%)
Natural gas liquids (Bbls)**	$	27.08	$	29.61	$	(2.53)	(9	%)


	Net Production
	Three months ended		Increase
	March 31,		(Decrease)
	2026	2025	Units	%
Natural Gas (Mcf)*	211,000	253,000	(42,000)	(17	%)
Oil (Bbls)**	32,000	43,000	(11,000)	(26	%)
Natural gas liquids (Bbls)**	8,000	14,000	(6,000)	(43	%)


	(a)	(b)	(c)	(d)
Period	Total number of shares purchased (1)	Average price paid per share (1)	Total number of shares purchased as part of publicly announced plans or programs (2)	Maximum number of shares that may yet be purchased under the plans or programs (2)
January 1-31, 2026	—	—	—	—
February 1-28, 2026	—	—	—	—
March 1-31, 2026	—	—	—	—
Total	0


Exhibit Number						Description

10.1						Sales Agreement by and between Barnwell Industries, Inc. and Roth Capital Partners, LLC, dated February 25, 2026, incorporated by reference to Exhibit 10.1 to the Company's Current Report on Form 8-K filed with the SEC on February 25, 2026

31.1*						Certification of Chief Executive Officer Pursuant To Section 302 of the Sarbanes-Oxley Act of 2002

31.2*						Certification of Chief Financial Officer Pursuant To Section 302 of the Sarbanes-Oxley Act of 2002

32**						Certification Pursuant To Section 906 of the Sarbanes-Oxley Act of 2002

101.INS*						Inline XBRL Instance Document

101.SCH*						Inline XBRL Taxonomy Extension Schema Document

101.CAL*						Inline XBRL Taxonomy Extension Calculation Linkbase Document

101.DEF*						Inline XBRL Taxonomy Extension Definition Linkbase Document

101.LAB*						Inline XBRL Taxonomy Extension Label Linkbase Document

101.PRE*						Inline XBRL Taxonomy Extension Presentation Linkbase Document

104						Cover Page Interactive Data File (embedded within the Inline XBRL document)


		BARNWELL INDUSTRIES, INC.
		(Registrant)


Date:	May 20, 2026	/s/ Philip F. Patman Jr.
		Philip F. Patman, Jr.
		Chief Financial Officer, and Treasurer
		(Principal Financial Officer and Principal Accounting Officer)