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~~

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

For the quarterly period ended ~~December~~March 31, ~~2017~~

~~[ ]~~

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

2022

☐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		(I.R.S. Employer
incorporation or organization)	~~(I.R.S. Employer~~	Identification No.)

~~PO Box 1057 Breckenridge CO 80424-1057~~

700 Colorado Blvd #273 Denver CO 80206

(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 ]~~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 ]~~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, or an emerging growth 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 ~~February 9, 2018: 12,555,131~~

May 6, 2022: 12,011,401

PART I - FINANCIAL INFORMATION

Item 1. Financial Statements

ALTEX INDUSTRIES, INC. AND SUBSIDIARIES
Condensed Consolidated Balance Sheets
(Unaudited)
December 31, September 30,
2017 2017
Assets
Current assets
    Cash and cash equivalents $ 2,327,000 $ 2,349,000
    Accounts receivable 1,000 -
    Other 12,000 17,000
Total current assets 2,340,000 2,366,000

Property and equipment, at cost
    Proved oil and gas properties (successful efforts method) 333,000 333,000
    Other - 3,000
Total property and equipment, at cost 333,000 336,000
    Less accumulated depreciation, depletion, and amortization (229,000 ) (227,000 )
Net property and equipment 104,000 109,000

Total assets 2,444,000 2,475,000

Liabilities and Stockholders' Equity
Current liabilities
    Accounts payable 8,000 4,000
    Other accrued expenses 1,076,000 1,080,000
Total current liabilities 1,084,000 1,084,000

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; 12,597,631 shares issued; 12,555,131 and 12,597,631 shares outstanding in December and September, respectively 126,000 126,000
    Additional paid-in capital 13,827,000 13,827,000
    Accumulated deficit (12,589,000 ) (12,562,000 )
    Treasury stock, at cost, 42,500 shares (4,000 ) -
Total stockholders' equity 1,360,000 1,391,000

Total liabilities and stockholders' equity $ 2,444,000 $ 2,475,000

PART I - FINANCIAL INFORMATION

Item 1. Financial Statements

ALTEX INDUSTRIES, INC.

Condensed Consolidated Balance Sheets

(Unaudited)

	March 31	September 30
	2022	2021
Assets
Current assets
Cash and cash equivalents	`$2,438,000`	`$2,037,000`
Accounts receivable	`2,000`	`3,000`
Other	`9,000`	`21,000`
Total current assets	`2,449,000`	`2,061,000`

Property and equipment, at cost
Proved oil and gas properties (successful efforts method)	`333,000`	`333,000`
Less accumulated depreciation, depletion, and amortization	`(293,000)`	`(290,000)`
Net property and equipment	`40,000`	`43,000`

Right-of-Use Asset	`83,000`	`95,000`

Total assets	`2,572,000`	`2,199,000`

Liabilities and Stockholders’ Equity
Current liabilities
Accounts payable	`2,000`	`2,000`
Operating lease liability	`24,000`	`23,000`
Accrued expenses, related party	`1,073,000`	`1,073,000`
Other accrued expenses	`6,000`	`11,000`
Total current liabilities	`1,105,000`	`1,109,000`

Long-term operating lease liability	`59,000`	`72,000`

Total Liabilities	`1,164,000`	`1,181,000`

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; 12,011,401 shares issued and outstanding	`121,000`	`121,000`
Additional paid-in capital	`13,776,000`	`13,776,000`
Accumulated deficit	`(12,489,000)`	`(12,879,000)`
Total stockholders' equity	`1,408,000`	`1,018,000`

Total liabilities and stockholders' equity	`$2,572,000`	`$2,199,000`

See notes to unaudited condensed consolidated financial statements

ALTEX INDUSTRIES, INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Operations
(Unaudited)

Three Months Ended
December 31,
2017 2016
Revenue
    Oil and gas sales $ 12,000 $ 21,000
Total revenue 12,000 21,000

Costs and expenses
    Production taxes - 1,000
    General and administrative 38,000 42,000
    Depreciation, depletion, and amortization 5,000 6,000
Total costs and expenses 43,000 49,000

Loss from operations (31,000 ) (28,000 )

Other income
    Interest income 4,000 5,000
Total other income 4,000 5,000

Net loss $ (27,000 ) $ (23,000 )

Loss per share $ (0.00 ) $ (0.00 )

Weighted average shares outstanding 12,573,229 12,688,148

ALTEX INDUSTRIES, INC.

Condensed Consolidated Statements of Operations

(Unaudited)

	Three Months Ended		Six Months Ended
	March 31		March 31
	2022	2021	2022	2021
Revenue
Oil and gas sales	`$5,000`	`$3,000`	`$26,000`	`$11,000`
Total revenue	`5,000`	`3,000`	`26,000`	`11,000`

Operating expense
Production taxes	`1,000`	`1,000`	`2,000`	`1,000`
General and administrative	`53,000`	`50,000`	`85,000`	`84,000`
Depreciation, depletion, and amortization	`1,000`	`2,000`	`3,000`	`4,000`
Total operating expense	`55,000`	`53,000`	`90,000`	`89,000`

Other income
Gain on sale of assets	`450,000`	`-`	`450,000`	`-`
Other income	`4,000`	`1,000`	`4,000`	`1,000`
Total other income	`454,000`	`1,000`	`454,000`	`1,000`

Net earnings (loss)	`$404,000`	`$(49,000)`	`$390,000`	`$(77,000)`

Basic and diluted earnings (loss) per share	`$0.03`	`$(0.00)`	`$0.03`	`$(0.01)`

Basic and diluted weighted average shares outstanding	`12,011,401`	`12,141,401`	`12,011,401`	`12,141,401`

See notes to unaudited condensed consolidated financial statements

ALTEX INDUSTRIES, INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Cash Flows
(Unaudited)
Three months ended
December 31,
2017 2016
Cash flows used in operating activities
    Net loss $ (27,000 ) $ (23,000 )
    Adjustments to reconcile net loss to net cash used in operating activities
        Depreciation, depletion, and amortization 5,000 6,000
        Increase in accounts receivable (1,000 ) (1,000 )
        Decrease in other current assets 5,000 4,000
        Increase (decrease) in accounts payable 4,000 (2,000 )
        Decrease in other accrued expenses (4,000 ) (4,000 )
Net cash used in operating activities (18,000 ) (20,000 )

Cash flows from financing activities
    Acquisition of treasury stock (4,000 ) (8,000 )
Net cash used in financing activities (4,000 ) (8,000 )

Net decrease in cash and cash equivalents (22,000 ) (28,000 )
Cash and cash equivalents at beginning of period 2,349,000 2,472,000
Cash and cash equivalents at end of period $ 2,327,000 $ 2,444,000

Noncash investing and financing activities
    Retirement of property plant and equipment $ 3,000 $ -

Supplemental disclosures
    Cash paid for interest $ - $ -
    Cash paid for income taxes $ - $ -

ALTEX INDUSTRIES, INC.

Condensed Consolidated Statements of Cash Flows

(Unaudited)

	Six months ended
	March 31
	2022	2021
Cash flows used in operating activities
Net earnings (loss)	`$390,000`	`$(77,000)`
Adjustments to reconcile net loss to net cash used in operating activities
Gain on sale of assets	`(450,000)`	`-`
Depreciation, depletion, and amortization	`3,000`	`4,000`
Changes in assets and liabilities
(Increase) decrease in accounts receivable	`1,000`	`(1,000)`
Decrease in other current assets	`12,000`	`13,000`
Decrease in accounts payable	`-`	`(8,000)`
Decrease in other accrued expenses	`(5,000)`	`(5,000)`
Net cash used in operating activities	`(49,000)`	`(74,000)`

Cash flows from investing activities
Proceeds from sale of assets	`450,000`	`-`
Net cash provided by investing activities	`450,000`

Cash flows from financing activities	`-`	`-`

Net increase (decrease) in cash and cash equivalents	`401,000`	`(74,000)`
Cash and cash equivalents at beginning of period	`2,037,000`	`2,141,000`
Cash and cash equivalents at end of period	`$2,438,000`	`$2,067,000`

See notes to unaudited condensed consolidated financial statements

ALTEX INDUSTRIES, INC.

Condensed Consolidated Statements of Stockholders' Equity

(Unaudited)

For the six months ended March 31, 2022	Preferred Stock		Common Stock		Additional paid-	Accumulated	Treasury	Total stockholders'
	Shares	Amount	Shares	Amount	in capital	deficit	stock	equity
Balance at September 30, 2021			`12,011,401`	`$121,000`	`$13,776,000`	`$(12,879,000)`	`$-`	`$1,018,000`
Net earnings						`390,000`		`390,000`
Balance at March 31, 2022			`12,011,401`	`$121,000`	`$13,776,000`	`$(12,489,000)`	`$-`	`$1,408,000`

For the three months ended March 31, 2022	Preferred Stock		Common Stock		Additional paid-	Accumulated	Treasury	Total stockholders'
	Shares	Amount	Shares	Amount	in capital	deficit	stock	equity
Balance at December 31, 2021			`12,011,401`	`$121,000`	`$13,776,000`	`$(12,893,000)`	`$-`	`$1,004,000`
Net earnings						`404,000`		`404,000`
Balance at March 31, 2022			`12,011,401`	`$121,000`	`$13,776,000`	`$(12,489,000)`	`$-`	`$1,408,000`

See notes to unaudited condensed consolidated financial statements

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, 2017,~~March 31, 2022, 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 ~~December~~March 31, ~~2017, and~~2022, the cash flows for the six months then ended, and the results of operations for the three and six months then ended. Such adjustments consisted only of normal recurring items. The results of operations for the three and six months ended ~~December~~March 31 are not necessarily indicative of the results for the full year. As of March 31, 2022, there were no potentially dilutive shares for the Company. 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 ~~2017~~2022 Annual Report on Form ~~10‑K,~~10-K, and it is suggested that these condensed, consolidated financial statements be read in conjunction therewith.

Note 2 – ~~Income Taxes.~~ ~~The~~Effective January 1, 2022, the Company ~~does not anticipate that~~sold certain oil, gas, and mineral interests in Utah for $450,000 cash. As the ~~Tax Cuts and Jobs Act will have~~Company had a ~~material effect~~zero-dollar basis in the mineral interests sold, the $450,000 was recorded as a gain on the ~~Company.~~

"sale of assets to the consolidated statement of operations.

“SAFE ~~HARBOR"~~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~~10-Q are ~~forward‑looking~~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~~start-up dates; environmental risks; the results of financing efforts; and other uncertainties detailed elsewhere herein and in the ~~Company's~~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

~~Cash balances decreased $22,000~~

Effective January 1, 2022, the Company sold certain oil, gas, and mineral interests in Utah for $450,000 cash. The Company used $49,000 cash in operating activities in the ~~three~~six months ended ~~December~~March 31, ~~2017.~~2022, and used $74,000 cash in operating activities in the six months ended March 31, 2021. At ~~December~~March 31, ~~2017,~~2022 and 2021, $1,073,000 of ~~other~~ accrued expenses is accrued but unpaid salary (and related accrued payroll tax liability) due to the ~~Company's~~Company’s president that the ~~Company's~~Company’s president has elected to defer. 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 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 ~~February 9, 2018,~~May 6, 2022, 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")~~asset retirement obligations (ARO). The Company does not believe that it currently has any material exposure to environmental liability or to ~~RR&D, net of salvage value,~~ARO, although this cannot be assured.

Results of Operations

~~Oil and gas sales decreased from $21,000 in the three months ended December 31, 2016, ("Q1FY17") to $12,000 in the three months ended December 31, 2017, ("Q1FY18"), despite higher realized~~

Despite current oil and gas prices, ~~because of the rapid decline in production and sales from a single well in which the Company has an interest. At~~ the current level of cash balances, and at current interest rates, the ~~Company's~~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~~Except for the ~~exception~~effects of unanticipated ~~RR&D,~~ARO, 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.

~~Liquidity and Capital Resources~~

~~Operating Activities. The Company used $18,000 and $20,000 cash in operating activities in Q1FY18 and Q1FY17, respectively.~~

~~Financing Activities. The Company acquired 42,500 shares of it common stock for $4,000 during Q1FY18 and 90,000 shares of its common stock for $8,000 during Q1FY17.~~

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~~Company’s Exchange Act reports is recorded, processed, summarized, and reported within the time periods specified in the ~~SEC's~~SEC’s rules and forms, and that such information is accumulated and communicated to the ~~Company's~~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~~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~~Company’s management, including the ~~Company's~~Company’s Principal Executive Officer and Principal Financial Officer, of the effectiveness of the design and operation of the ~~Company's~~Company’s disclosure controls and procedures pursuant to Exchange Act Rule ~~13a‑14.~~13a-14. Based upon the foregoing, the ~~Company's~~Company’s Principal Executive Officer and Principal Financial Officer concluded that the ~~Company's~~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~~Company’s Exchange Act reports. There have been no significant changes in the ~~Company's~~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~~

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

October 2017 22,500 $ 0.08 -- --
November 2017 -- -- -- --
December 2017 20,000 $ 0.09 -- --
Total 42,500 $ 0.08 -- --

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

Item 6. Exhibits

31.	Rule 13a-14(a)/15d-14(a) Certifications
32.*
~~32.~~^*	Section 1350 Certifications
101.xml
~~101.xml~~	XBRL Instance Document
101.xsd
~~101.xsd~~	XBRL Taxonomy Extension Schema Document
101.cal
~~101.cal~~	XBRL Taxonomy Extension Calculation Linkbase Document
101.def
~~101.def~~	XBRL Taxonomy Extension Definition Linkbase Document
101.lab
~~101.lab~~	XBRL Taxonomy Extension Label Linkbase Document
101.pre
~~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: ~~February 9, 2018~~May 6, 2022

By:

/s/ STEVEN H. CARDIN

Steven H. Cardin

Chief Executive Officer and

Principal Financial Officer

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
October 2017		22,500	$	0.08		--		--
November 2017		--		--		--		--
December 2017		20,000	$	0.09		--		--
Total		42,500	$	0.08		--		--