Company Quick10K Filing
Quick10K
Altex Industries
10-Q 2019-06-30 Quarter: 2019-06-30
10-Q 2019-03-31 Quarter: 2019-03-31
10-Q 2018-12-31 Quarter: 2018-12-31
10-K 2018-09-30 Annual: 2018-09-30
10-Q 2018-06-30 Quarter: 2018-06-30
10-Q 2018-03-31 Quarter: 2018-03-31
10-Q 2017-12-31 Quarter: 2017-12-31
10-K 2017-09-30 Annual: 2017-09-30
10-Q 2017-06-30 Quarter: 2017-06-30
10-Q 2017-03-31 Quarter: 2017-03-31
10-Q 2016-12-31 Quarter: 2016-12-31
10-K 2016-09-30 Annual: 2016-09-30
10-Q 2016-06-30 Quarter: 2016-06-30
10-Q 2016-03-31 Quarter: 2016-03-31
10-Q 2015-12-31 Quarter: 2015-12-31
10-K 2015-09-30 Annual: 2015-09-30
10-Q 2015-06-30 Quarter: 2015-06-30
10-Q 2015-03-31 Quarter: 2015-03-31
10-Q 2014-12-31 Quarter: 2014-12-31
10-K 2014-09-30 Annual: 2014-09-30
10-Q 2014-06-30 Quarter: 2014-06-30
10-Q 2014-03-31 Quarter: 2014-03-31
10-Q 2013-12-31 Quarter: 2013-12-31
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CLDB Cortland Bancorp 100
HLAB Hash Labs 67
ITKG Integral Technologies 12
FASV Century Cobalt 3
VRDR Verde Resources 2
MCCX McorpCX 0
NEST Nestbuilder.com 0
RZZN Jialijia Group 0
ALTX 2019-06-30
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operation.
Item 4. Controls and Procedures.
Part II - Other Information
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
Item 6. Exhibits
EX-31 exh31.htm
EX-32 exh32.htm

Altex Industries Earnings 2019-06-30

ALTX 10Q Quarterly Report

Balance SheetIncome StatementCash Flow

10-Q 1 altex.htm 10Q


UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 10-Q

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

For the quarterly period ended June 30, 2019

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

For the transition period from         to         .

Commission file number 1-9030


ALTEX INDUSTRIES, INC.
(Exact name of registrant as specified in its charter)

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

PO Box 1057  Breckenridge CO  80424-1057
(Address of principal executive offices) (Zip Code)
 
(303) 265-9312
(Registrant's telephone number, including area code)

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

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes [ X ] No [  ]

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

Large accelerated filer [  ]
Accelerated filer [  ]
Non-accelerated filer [  ]
Smaller reporting company [ X ]
 
Emerging growth company [  ]

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

Number of shares outstanding of issuer's Common Stock as of August 9, 2019: 12,262,376

 
PART I - FINANCIAL INFORMATION
 
   
Item 1. Financial Statements
 
   
ALTEX INDUSTRIES, INC. AND SUBSIDIARIES
 
Condensed Consolidated Balance Sheets
 
(Unaudited)
 
   
June 30
   
September 30
 
   
2019
   
2018
 
Assets
           
Current assets
           
    Cash and cash equivalents
 
$
2,280,000
   
$
2,274,000
 
    Accounts receivable
   
2,000
     
-
 
    Other
   
24,000
     
18,000
 
Total current assets
   
2,306,000
     
2,292,000
 
                 
Property and equipment, at cost
               
    Proved oil and gas properties (successful efforts method)
   
333,000
     
333,000
 
    Less accumulated depreciation, depletion, and amortization
   
(245,000
)
   
(236,000
)
Net property and equipment
   
88,000
     
97,000
 
                 
Total assets
   
2,394,000
     
2,389,000
 
                 
Liabilities and Stockholders’ Equity
               
Current liabilities
               
    Accounts payable
   
4,000
     
11,000
 
    Other accrued expenses
   
1,080,000
     
1,080,000
 
Total current liabilities
   
1,084,000
     
1,091,000
 
                 
Commitments and Contingencies
   
-
     
-
 
                 
Stockholders’ equity
               
    Preferred stock, $.01 par value. Authorized 5,000,000 shares, none issued
   
-
     
-
 
Common stock, $.01 par value. Authorized 50,000,000 shares; 12,351,731 shares issued; 12,262,376 and 12,351,731 shares outstanding in June and September, respectively
   
124,000
     
124,000
 
    Additional paid-in capital
   
13,809,000
     
13,809,000
 
    Accumulated deficit
   
(12,616,000
)
   
(12,635,000
)
    Treasury stock, at cost, 89,355 shares
   
(7,000
)
   
-
 
Total stockholders' equity
   
1,310,000
     
1,298,000
 
                 
Total liabilities and stockholders' equity
 
$
2,394,000
   
$
2,389,000
 

See notes to unaudited condensed consolidated financial statements
1

 
ALTEX INDUSTRIES, INC. AND SUBSIDIARIES
 
Condensed Consolidated Statements of Operations
 
(Unaudited)
 
                         
   
Three Months Ended
   
Nine Months Ended
 
   
June 30
   
June 30
 
   
2019
   
2018
   
2019
   
2018
 
Revenue
                       
    Oil and gas sales
 
$
12,000
   
$
14,000
   
$
43,000
   
$
53,000
 
Total revenue
   
12,000
     
14,000
     
43,000
     
53,000
 
                                 
Costs and expenses
                               
    Production taxes
   
-
     
1,000
     
3,000
     
4,000
 
    General and administrative
   
35,000
     
35,000
     
115,000
     
118,000
 
    Depreciation, depletion, and amortization
   
3,000
     
4,000
     
9,000
     
13,000
 
Total costs and expenses
   
38,000
     
40,000
     
127,000
     
135,000
 
                                 
Loss from operations
   
(26,000
)
   
(26,000
)
   
(84,000
)
   
(82,000
)
                                 
Other income
                               
    Interest income
   
12,000
     
10,000
     
38,000
     
19,000
 
    Other income
   
41,000
     
1,000
     
65,000
     
6,000
 
Total other income
   
53,000
     
11,000
     
103,000
     
25,000
 
                                 
Net gain (loss)
 
$
27,000
   
$
(15,000
)
 
$
19,000
   
$
(57,000
)
                                 
Gain (loss) per share
 
$
0.00
   
$
(0.00
)
 
$
0.00
   
$
(0.00
)
                                 
Weighted average shares outstanding
   
12,262,596
     
12,555,131
     
12,318,973
     
12,561,230
 

See notes to unaudited condensed consolidated financial statements
2

 
ALTEX INDUSTRIES, INC. AND SUBSIDIARIES
 
Condensed Consolidated Statements of Cash Flows
 
(Unaudited)
 
   
Nine months ended
 
   
June 30
 
   
2019
   
2018
 
Cash flows used in operating activities
           
    Net gain (loss)
 
$
19,000
   
$
(57,000
)
    Adjustments to reconcile net loss to net cash used in operating activities
               
        Depreciation, depletion, and amortization
   
9,000
     
13,000
 
        Increase in accounts receivable
   
(2,000
)
   
(5,000
)
        Increase in other current assets
   
(6,000
)
   
(6,000
)
        Decrease in accounts payable
   
(7,000
)
   
(1,000
)
        Decrease in other accrued expenses
   
-
     
(2,000
)
Net cash provided by (used in) operating activities
   
13,000
     
(58,000
)
                 
Cash flows from financing activities
               
    Acquisition of treasury stock
   
(7,000
)
   
(4,000
)
Net cash used in financing activities
   
(7,000
)
   
(4,000
)
                 
Net increase (decrease) in cash and cash equivalents
   
6,000
     
(62,000
)
Cash and cash equivalents at beginning of period
   
2,274,000
     
2,349,000
 
Cash and cash equivalents at end of period
 
$
2,280,000
   
$
2,287,000
 
                 
Noncash investing and financing activities
               
    Retirement of property plant and equipment
 
$
-
   
$
3,000
 
                 
Supplemental disclosures
               
    Cash paid for interest
 
$
-
   
$
-
 
    Cash paid for income taxes
 
$
-
   
$
-
 

See notes to unaudited condensed consolidated financial statements
3

 
ALTEX INDUSTRIES, INC.
Condensed Consolidated Statements of Stockholders' Equity
(Unaudited)

For the nine months ended
June 30, 2019
Preferred Stock
 
Common Stock
   
Additional
paid-in
   
Accumulated
   
Treasury
   
Total
stockholders'
 

Amount
Shares
 
Shares
   
Amount
     capital      deficit      stock      equity  
                                                     
Balance at September 30, 2018
 
     
12,351,731
   
$
124,000
   
$
13,809,000
   
$
(12,635,000
)
 
$
-
   
$
1,298,000
 
Net gain
                               
19,000
             
19,000
 
Dividends declared
                                                   
    Preferred stock, none
                                                   
    Common stock, none
                                                   
Acquisition of treasury stock, 89,355 shares at $0.08 per share
       
(89,355
)
                           
(7,000
)
   
(7,000
)
Balance at June 30, 2019
 
     
12,262,376
   
$
124,000
   
$
13,809,000
   
$
(12,616,000
)
 
$
(7,000
)
 
$
1,310,000
 
                                                     
                                                     
For the three months ended
June 30, 2019
Preferred Stock
 
Common Stock
   
Additional
paid-in
   
Accumulated
   
Treasury
   
Total
stockholders'
 

Amount
Shares
 
Shares
   
Amount
     capital
     deficit
     stock
     equity
 
                                                     
Balance at March 31, 2019
 
     
12,282,376
   
$
124,000
   
$
13,809,000
   
$
(12,643,000
)
 
$
(5,000
)
 
$
1,285,000
 
Net gain
                               
27,000
             
27,000
 
Dividends declared
                                                   
    Preferred stock, none
                                                   
    Common stock, none
                                                   
Acquisition of treasury stock, 20,000 shares at $0.10 per share
       
(20,000
)
                           
(2,000
)
   
(2,000
)
Balance at June 30, 2019
 
     
12,262,376
   
$
124,000
   
$
13,809,000
   
$
(12,616,000
)
 
$
(7,000
)
 
$
1,310,000
 

See notes to unaudited condensed consolidated financial statements
4

ALTEX INDUSTRIES, INC. AND SUBSIDIARIES
Notes to Condensed Consolidated Financial Statements
(Unaudited)

Note 1 ‑ Basis of Presentation. The accompanying Condensed Consolidated Balance Sheet as of September 30, 2018, which was derived from audited financial statements, and the unaudited interim condensed consolidated financial statements of the Company have been prepared in accordance with U.S. GAAP for interim financial information, the instructions to Form 10-Q and Article 10 of Regulation S-X. In the opinion of management, the accompanying unaudited, consolidated, condensed financial statements contain all adjustments necessary to present fairly the financial position of the Company as of June 30, 2019, and the cash flows and results of operations for the three and nine months then ended. Such adjustments consisted only of normal recurring items. The results of operations for the three and nine months ended June 30 are not necessarily indicative of the results for the full year. Certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted. The accounting policies followed by the Company are set forth in Note 1 to the Company's consolidated financial statements contained in the Company's 2018 Annual Report on Form 10‑K, and it is suggested that these condensed consolidated financial statements be read in conjunction therewith.


“SAFE HARBOR” STATEMENT UNDER THE
UNITED STATES PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995

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

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

Financial Condition

Operating activities in the nine months ended June 30, 2019, provided $13,000 cash, and operating activities in the nine months ended June 30, 2018, used $58,000 cash. The Company used $4,000 cash to acquire 42,500 shares of its Common Stock in the nine months ended June 30, 2018, and $7,000 cash to acquire 89,355 shares of its Common Stock in the nine months ended June 30, 2019. Consequently, cash decreased $62,000 in the nine months ended June 30, 2018, and increased $6,000 in the nine months ended June 30, 2019. At September 30, 2018, and at June 30, 2019, $1,073,000 of other accrued expenses is accrued but unpaid salary (and related accrued payroll tax liability) due to the Company’s president that the Company’s president has elected to defer.

The Company is likely to experience negative cash flow from operations unless and until the Company invests in interests in producing oil and gas wells or in another venture that produces 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, the possibility of a change in the interest rates the Company realizes on cash balances, and changes in the price of oil and natural gas, the Company knows of no other trends or any known demands, commitments, events or uncertainties that will result in or that are reasonably likely to result in the Company's liquidity increasing or decreasing in any material way.

Except for cash generated by the operation of the Company's producing oil and gas properties, asset sales, and interest income, the Company has no internal or external sources of liquidity other than its working capital. At August 9, 2019, the Company had no material commitments for capital expenditures.

The Company regularly assesses its exposure to environmental liability and reclamation, restoration, and dismantlement expense (“RR&D”). The Company does not believe that it currently has any material exposure to environmental liability or to RR&D, net of salvage value, although this cannot be assured.
5

Results of Operations

At the current level of cash balances and at current interest rates, the Company’s revenue is unlikely to exceed its expenses. Unless and until the Company invests a substantial portion of its cash balances in interests in producing oil and gas wells or in one or more other ventures that produce revenue and net income, the Company is likely to experience net losses. With the exception of unanticipated RR&D, unanticipated environmental expense, and possible changes in interest rates and oil and gas prices, the Company is not aware of any other known trends or uncertainties that have had or that the Company reasonably expects will have a material favorable or unfavorable impact on net sales or revenues or income from continuing operations.

Item 4. Controls and Procedures.

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

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

Changes in Internal Control Over Financial Reporting
 
During the period covered by this Report there has been no change in our internal control over financial reporting that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.
 
PART II - OTHER INFORMATION

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

Issuer Purchases of Equity Securities

     (a)      (b)      (c)      (d)  
Period
 
Total
number of
shares
 (or units)
purchased
   
Average
price paid
per share
(or unit)
   
Total number
of shares
(or units)
purchased as
part of
publicly
announced
plans or
programs
   
Maximum
number (or approximate
dollar value)
of shares
(or units) that
may yet be
purchased
under the
plans or
programs
 
April
2019
   
20,000
   
$
0.10
     
--
     
--
 
May
2019
   
--
     
--
     
--
     
--
 
June
2019
   
--
     
--
     
--
     
--
 
Total
   
20,000
   
$
0.10
     
--
     
--
 

The Company has no publicly announced plan or program for the purchase of shares.

6

Item 6. Exhibits

31.
   
32.*
   
101.xml
XBRL Instance Document
   
101.xsd
XBRL Taxonomy Extension Schema Document
   
101.cal
XBRL Taxonomy Extension Calculation Linkbase Document
   
101.def
XBRL Taxonomy Extension Definition Linkbase Document
   
101.lab
XBRL Taxonomy Extension Label Linkbase Document
   
101.pre
XBRL Taxonomy Extension Presentation Linkbase Document
___________________________
* Furnished. Not Filed. Not incorporated by reference. Not subject to liability.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

ALTEX INDUSTRIES, INC.

Date: August 9, 2019
By: /s/ STEVEN H. CARDIN
 
Steven H. Cardin
 
Chief Executive Officer and
Principal Financial Officer


7