Altex Industries (ALTX) 10-K 26 Dec 19 2019 FY Annual report Financial data

Document and Entity Information

Document and Entity Information - USD ($)	12 Months Ended
	Sep. 30, 2019	Dec. 26, 2019	Mar. 31, 2019
Details
Registrant CIK	0000775057
Fiscal Year End	--09-30
Registrant Name	ALTEX INDUSTRIES INC
SEC Form	10-K
Period End date	Sep. 30, 2019
Tax Identification Number (TIN)	84-0989164
Number of common stock shares outstanding		12,185,409
Public Float			$ 402,000
Filer Category	Non-accelerated Filer
Current with reporting	Yes
Interactive Data Current	Yes
Voluntary filer	No
Well-known Seasoned Issuer	No
Shell Company	false
Small Business	true
Emerging Growth Company	false
Document Annual Report	true
Document Transition Report	false
Entity File Number	1-9030
Entity Incorporation, State or Country Code	DE
Entity Address, Address Line One	PO Box 1057
Entity Address, City or Town	Breckenridge
Entity Address, State or Province	CO
Entity Address, Postal Zip Code	80424
Entity Address, Address Description	Address of principal executive offices
City Area Code	303
Local Phone Number	265-9312
Amendment Flag	false
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	FY

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($)	Sep. 30, 2019	Sep. 30, 2018
Current assets
Cash and cash equivalents	$ 2,266,000	$ 2,274,000
Other	20,000	18,000
Total current assets	2,286,000	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	(275,000)	(236,000)
Net property and equipment	58,000	97,000
Total assets	2,344,000	2,389,000
Current liabilities:
Accounts payable	10,000	11,000
Other accrued expenses - related party	1,081,000	1,080,000
Total current liabilities	1,091,000	1,091,000
Commitments and Contingencies (Notes 3, 5 and 6)	0	0
Stockholders' equity:
Preferred stock	0	0
Common stock	122,000	124,000
Additional paid-in capital	13,798,000	13,809,000
Accumulated deficit	(12,667,000)	(12,635,000)
Total stockholders' equity	1,253,000	1,298,000
Total liabilities and stockholders' equity	$ 2,344,000	$ 2,389,000

Consolidated Balance Sheets - P

Consolidated Balance Sheets - Parenthetical - $ / shares	Sep. 30, 2019	Sep. 30, 2018
Details
Preferred Stock, Par or Stated Value Per Share	$ 0.01	$ 0.01
Preferred Stock, Shares Authorized	5,000,000	5,000,000
Preferred Stock, Shares Issued	0	0
Common Stock, Par or Stated Value Per Share	$ 0.01	$ 0.01
Common Stock, Shares Authorized	50,000,000	50,000,000
Common Stock, Shares, Issued	12,185,409	12,351,731
Common Stock, Shares, Outstanding	12,185,409	12,351,731

Consolidated Statements of Oper

Consolidated Statements of Operations - USD ($)	12 Months Ended
	Sep. 30, 2019	Sep. 30, 2018
Revenue
Oil and gas sales	$ 56,000	$ 64,000
Total revenue	56,000	64,000
Costs and expenses
Production taxes	4,000	5,000
General and administrative	161,000	158,000
Depreciation, depletion, amortization and valuation provision	39,000	12,000
Total costs and expenses	204,000	175,000
Other Nonoperating Income (Expense)
Interest income	51,000	30,000
Interest income	65,000	8,000
Net loss	$ (32,000)	$ (73,000)
Gain (loss) per share	$ 0	$ (0.01)
Weighted-average shares outstanding	12,303,021	12,556,906

Consolidated Statements of Stoc

Consolidated Statements of Stockholders' Equity - USD ($)	Common Stock	Additional Paid-in Capital	Retained Earnings	Treasury Stock	Total
Stockholders' Equity Attributable to Parent, Beginning Balance at Sep. 30, 2017	$ 126,000	$ 13,827,000	$ (12,562,000)		$ 1,391,000
Shares, Outstanding, Beginning Balance at Sep. 30, 2017	12,597,631
Net loss			(73,000)		(73,000)
Treasury Stock, Value, Acquired, Cost Method				$ (20,000)	(20,000)
Treasury Stock, Retired, Cost Method, Amount	$ (2,000)	(18,000)		20,000	0
Treasury Stock, Shares, Retired	(245,900)
Stockholders' Equity Attributable to Parent, Ending Balance at Sep. 30, 2018	$ 124,000	13,809,000	(12,635,000)	0	1,298,000
Shares, Outstanding, Ending Balance at Sep. 30, 2018	12,351,731
Net loss			(32,000)		(32,000)
Treasury Stock, Value, Acquired, Cost Method				(13,000)	(13,000)
Treasury Stock, Retired, Cost Method, Amount	$ (2,000)	(11,000)		13,000	0
Treasury Stock, Shares, Retired	(166,322)
Stockholders' Equity Attributable to Parent, Ending Balance at Sep. 30, 2019	$ 122,000	$ 13,798,000	$ (12,667,000)	$ 0	$ 1,253,000
Shares, Outstanding, Ending Balance at Sep. 30, 2019	12,185,409

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($)	12 Months Ended
	Sep. 30, 2019	Sep. 30, 2018
Cash flows used in operating activities
Net loss	$ (32,000)	$ (73,000)
Adjustments to reconcile net loss to net cash used in operating activities
Depreciation, depletion, amortization and valuation provision	39,000	12,000
Increase in other assets	(2,000)	(1,000)
Increase (decrease) in accounts payable	(1,000)	7,000
Decrease in other accrued expenses	1,000	0
Net cash used in operating activities	5,000	(55,000)
Cash flows from investing activities
Cash flows from investing activities	0	0
Cash flows from financing activities
Acquisition of treasury stock	(13,000)	(20,000)
Net cash from financing activities	(13,000)	(20,000)
Net decrease in cash and cash equivalents	(8,000)	(75,000)
Cash and cash equivalents at beginning of year	2,274,000	2,349,000
Cash and cash equivalents at end of year	2,266,000	2,274,000
Noncash Investing and Financing Activities
Retirement of treasury stock	$ 13,000	$ 20,000

Note 1 - Nature of Operations a

Note 1 - Nature of Operations and Summary of Significant Accounting Policies.	12 Months Ended
	Sep. 30, 2019
Notes
Note 1 - Nature of Operations and Summary of Significant Accounting Policies.	Note 1 - Nature of Operations and Summary of Significant Accounting Policies Nature of Operations: Principles of Consolidation Estimates Property and Equipment Impairment of Long-Lived Assets Cash Equivalents and Fair Values of Financial Instruments Income Taxes Earnings Per Share Concentrations of credit risk : Revenue recognition : Revenue from Contracts with Customers Extractive Activities – Oil and Gas Revenue and Other Income Recent Accounting Pronouncements: In February 2016, the FASB issued ASU 2016-2, Leases (Topic 842), which requires lessees to recognize a lease liability and right-of-use asset for all leases, including operating leases, with a term greater than 12 months on the balance sheet. The provision of ASU 2016-2 also modifies the definition of a lease and outlines the requirements for recognition, measurement, presentation, and disclosure of leasing arrangements by both lessees and lessors. The ASU 2016-2 is effective for annual periods beginning after December 15, 2018. The Company is currently in the process of reviewing this pronouncement to determine the impact on is financial statement as it relates to its operating lease as discussed in Note 5.

Note 2 - Income Tax Disclosure

Note 2 - Income Tax Disclosure	12 Months Ended
	Sep. 30, 2019
Notes
Note 2 - Income Tax Disclosure	Note 2 - Income Taxes. Deferred Tax Assets 2019 2018 Depletion carryforward $ 181,000 181,000 Net operating loss carryforward 491,000 490,000 Accrued shareholder salary 215,000 215,000 Deletion and amortization 6,000 - Total Net Deferred Tax Assets 893,000 886,000 Less valuation allowance (893,000) (886,000) Net Deferred Tax Asset $ - - A valuation allowance has been provided because of the uncertainty of future realization. Income tax expense is different from amounts computed by applying the statutory Federal income tax rate for the following reasons: 2019 2018 Tax benefit at 21% of net earnings $ (7,000) (15,000) Impact of rate change effective January 1, 2018 - 579,000 Change in valuation allowance for net deferred tax assets (7,000) (564,000) Income tax expense $ - - As of September 30, 2019, the Company has no unrecognized tax benefit as a result of uncertain tax positions. As of September 30, 2019, the Company’s tax years that remain subject to examination are 2016 - 2019 (Federal jurisdiction) and 2015 - 2019 (state jurisdictions).

Note 3 - Related Party Transact

Note 3 - Related Party Transactions Disclosure	12 Months Ended
	Sep. 30, 2019
Notes
Note 3 - Related Party Transactions Disclosure	Note 3 - Related Party Transactions.

Note 4 - Major Customers

Note 4 - Major Customers	12 Months Ended
	Sep. 30, 2019
Notes
Note 4 - Major Customers	Note 4 - Major Customers.

Note 5 - Leases

Note 5 - Leases	12 Months Ended
	Sep. 30, 2019
Notes
Note 5 - Leases	Note 5 - Leases.

Note 6 - Reclamation, Restorati

Note 6 - Reclamation, Restoration, and Dismantlement	12 Months Ended
	Sep. 30, 2019
Notes
Note 6 - Reclamation, Restoration, and Dismantlement	Note 6 - Reclamation, Restoration, and Dismantlement (RR&D).

Note 7 - Subsequent events

Note 7 - Subsequent events	12 Months Ended
	Sep. 30, 2019
Notes
Note 7 - Subsequent events	Note 7 – Subsequent events.

Note 8 - Oil and Gas Exploratio

Note 8 - Oil and Gas Exploration and Production Industries Disclosures	12 Months Ended
	Sep. 30, 2019
Notes
Note 8 - Oil and Gas Exploration and Production Industries Disclosures	Note 8 – Supplemental Financial Data - Oil and Gas Producing Activities (Unaudited). I. Capitalized Costs Relating to Oil and Gas Producing Activities September 30, 2019 Proved properties $ 333,000 Accumulated depreciation, depletion, amortization and valuation allowance (275,000) Net capitalized cost $ 58,000 II. Estimated Quantities of Proved Oil and Gas Reserves Oil in Barrels Balance at September 30, 2017 3,700 Revisions of previous estimates 500 Production (500) Balance at September 30, 2018 3,700 Revisions of previous estimates (900) Production (400) Balance at September 30, 2019 2,400 III. Present Value of Estimated Future Net Revenue At September 30 2019 2018 Estimated future revenue $ 100,000 $ 225,000 Estimated future expenditures 11,000 26,000 Estimated future net revenue 89,000 199,000 10% annual discount of estimated future net revenue (31,000) (79,000) Present value of estimated future net revenue $ 58,000 $ 120,000 IV. Summary of Changes in Present Value of Estimated Future Net Revenue Year ended September 30 2019 2018 Present value of estimated future net revenue, beginning of year $ 120,000 $ 71,000 Sales, net of production costs (52,000) (59,000) Net change in prices and cost of future production (12,000) 75,000 Revisions of quantity estimates (25,000) 19,000 Accretion of discount 12,000 8,000 Change in production rates and other 15,000 6,000 Present value of estimated future net revenue, end of year $ 58,000 $ 120,000

Note 1 - Nature of Operations_2

Note 1 - Nature of Operations and Summary of Significant Accounting Policies.: Nature of Operations (Policies)	12 Months Ended
	Sep. 30, 2019
Policies
Nature of Operations	Nature of Operations:

Note 1 - Nature of Operations_3

Note 1 - Nature of Operations and Summary of Significant Accounting Policies.: Principles of Consolidation (Policies)	12 Months Ended
	Sep. 30, 2019
Policies
Principles of Consolidation	Principles of Consolidation

Note 1 - Nature of Operations_4

Note 1 - Nature of Operations and Summary of Significant Accounting Policies.: Use of Estimates, Policy (Policies)	12 Months Ended
	Sep. 30, 2019
Policies
Use of Estimates, Policy	Estimates

Note 1 - Nature of Operations_5

Note 1 - Nature of Operations and Summary of Significant Accounting Policies.: Property, Plant and Equipment, Policy (Policies)	12 Months Ended
	Sep. 30, 2019
Policies
Property, Plant and Equipment, Policy	Property and Equipment

Note 1 - Nature of Operations_6

Note 1 - Nature of Operations and Summary of Significant Accounting Policies.: Impairment or Disposal of Long-Lived Assets, Policy (Policies)	12 Months Ended
	Sep. 30, 2019
Policies
Impairment or Disposal of Long-Lived Assets, Policy	Impairment of Long-Lived Assets

Note 1 - Nature of Operations_7

Note 1 - Nature of Operations and Summary of Significant Accounting Policies.: Cash and Cash Equivalents, Policy (Policies)	12 Months Ended
	Sep. 30, 2019
Policies
Cash and Cash Equivalents, Policy	Cash Equivalents and Fair Values of Financial Instruments

Note 1 - Nature of Operations_8

Note 1 - Nature of Operations and Summary of Significant Accounting Policies.: Regulatory Income Taxes, Policy (Policies)	12 Months Ended
	Sep. 30, 2019
Policies
Regulatory Income Taxes, Policy	Income Taxes

Note 1 - Nature of Operations_9

Note 1 - Nature of Operations and Summary of Significant Accounting Policies.: Earnings Per Share Policy (Policies)	12 Months Ended
	Sep. 30, 2019
Policies
Earnings Per Share Policy	<p style='margin:0in;margin-bottom:.0001pt;text-autospace:none;text-align:justify;text-justify:inter-ideograph'><b><i>Earnings Per Share</i></b>: Earnings per share of common stock is based upon the weighted average number of shares of common stock outstanding during the year.</p>

Note 1 - Nature of Operation_10

Note 1 - Nature of Operations and Summary of Significant Accounting Policies.: Concentrations of Credit Risk Policy (Policies)	12 Months Ended
	Sep. 30, 2019
Policies
Concentrations of Credit Risk Policy	Concentrations of credit risk :

Note 1 - Nature of Operation_11

Note 1 - Nature of Operations and Summary of Significant Accounting Policies.: Revenue Recognition Policy (Policies)	12 Months Ended
	Sep. 30, 2019
Policies
Revenue Recognition Policy	Revenue recognition : Revenue from Contracts with Customers Extractive Activities – Oil and Gas Revenue and Other Income

Note 1 - Nature of Operation_12

Note 1 - Nature of Operations and Summary of Significant Accounting Policies.: Recent Accounting Pronouncements (Policies)	12 Months Ended
	Sep. 30, 2019
Policies
Recent Accounting Pronouncements:	Recent Accounting Pronouncements: In February 2016, the FASB issued ASU 2016-2, Leases (Topic 842), which requires lessees to recognize a lease liability and right-of-use asset for all leases, including operating leases, with a term greater than 12 months on the balance sheet. The provision of ASU 2016-2 also modifies the definition of a lease and outlines the requirements for recognition, measurement, presentation, and disclosure of leasing arrangements by both lessees and lessors. The ASU 2016-2 is effective for annual periods beginning after December 15, 2018. The Company is currently in the process of reviewing this pronouncement to determine the impact on is financial statement as it relates to its operating lease as discussed in Note 5.

Note 2 - Income Tax Disclosure_

Note 2 - Income Tax Disclosure: Schedule of Deferred Tax Assets (Tables)	12 Months Ended
	Sep. 30, 2019
Tables/Schedules
Schedule of Deferred Tax Assets	Deferred Tax Assets 2019 2018 Depletion carryforward $ 181,000 181,000 Net operating loss carryforward 491,000 490,000 Accrued shareholder salary 215,000 215,000 Deletion and amortization 6,000 - Total Net Deferred Tax Assets 893,000 886,000 Less valuation allowance (893,000) (886,000) Net Deferred Tax Asset $ - -

Note 2 - Income Tax Disclosur_2

Note 2 - Income Tax Disclosure: Schedule of Effective Income Tax Rate Reconciliation (Tables)	12 Months Ended
	Sep. 30, 2019
Tables/Schedules
Schedule of Effective Income Tax Rate Reconciliation	2019 2018 Tax benefit at 21% of net earnings $ (7,000) (15,000) Impact of rate change effective January 1, 2018 - 579,000 Change in valuation allowance for net deferred tax assets (7,000) (564,000) Income tax expense $ - -

Note 8 - Oil and Gas Explorat_2

Note 8 - Oil and Gas Exploration and Production Industries Disclosures: Capitalized Costs Relating to Oil and Gas Producing Activities Disclosure (Tables)	12 Months Ended
	Sep. 30, 2019
Tables/Schedules
Capitalized Costs Relating to Oil and Gas Producing Activities Disclosure	September 30, 2019 Proved properties $ 333,000 Accumulated depreciation, depletion, amortization and valuation allowance (275,000) Net capitalized cost $ 58,000

Note 8 - Oil and Gas Explorat_3

Note 8 - Oil and Gas Exploration and Production Industries Disclosures: Schedule of Proved Developed and Undeveloped Oil and Gas Reserve Quantities (Tables)	12 Months Ended
	Sep. 30, 2019
Tables/Schedules
Schedule of Proved Developed and Undeveloped Oil and Gas Reserve Quantities	Oil in Barrels Balance at September 30, 2017 3,700 Revisions of previous estimates 500 Production (500) Balance at September 30, 2018 3,700 Revisions of previous estimates (900) Production (400) Balance at September 30, 2019 2,400

Note 8 - Oil and Gas Explorat_4

Note 8 - Oil and Gas Exploration and Production Industries Disclosures: Present Value of Estimated Future Net Revenue (Tables)	12 Months Ended
	Sep. 30, 2019
Tables/Schedules
Present Value of Estimated Future Net Revenue	At September 30 2019 2018 Estimated future revenue $ 100,000 $ 225,000 Estimated future expenditures 11,000 26,000 Estimated future net revenue 89,000 199,000 10% annual discount of estimated future net revenue (31,000) (79,000) Present value of estimated future net revenue $ 58,000 $ 120,000

Note 8 - Oil and Gas Explorat_5

Note 8 - Oil and Gas Exploration and Production Industries Disclosures: Summary of Changes Present Value of Estimated Future Net Revenue (Tables)	12 Months Ended
	Sep. 30, 2019
Tables/Schedules
Summary of Changes Present Value of Estimated Future Net Revenue	Year ended September 30 2019 2018 Present value of estimated future net revenue, beginning of year $ 120,000 $ 71,000 Sales, net of production costs (52,000) (59,000) Net change in prices and cost of future production (12,000) 75,000 Revisions of quantity estimates (25,000) 19,000 Accretion of discount 12,000 8,000 Change in production rates and other 15,000 6,000 Present value of estimated future net revenue, end of year $ 58,000 $ 120,000

Note 2 - Income Tax Disclosure

Note 2 - Income Tax Disclosure (Details)	12 Months Ended
	Sep. 30, 2019USD ($)
Details
Depletion	$ 860,000
Operating Loss Carryforwards	$ 2,340,000

Note 2 - Income Tax Disclosur_3

Note 2 - Income Tax Disclosure: Schedule of Deferred Tax Assets (Details) - USD ($)	Sep. 30, 2019	Sep. 30, 2018
Details
Deferred Tax Assets - Depletion Carryforward	$ 181,000	$ 181,000
Deferred Tax Assets, Operating Loss Carryforwards	491,000	490,000
Deferred Tax Assets - Accrued Shareholder Salary	215,000	215,000
Deferred Tax Assets - Deletion and Amortizations	6,000	0
Deferred Tax Assets, Net of Valuation Allowance, Current	893,000	886,000
Deferred Tax Assets, Valuation Allowance	(893,000)	(886,000)
Deferred Tax Assets, Net of Valuation Allowance	$ 0	$ 0

Note 2 - Income Tax Disclosur_4

Note 2 - Income Tax Disclosure: Schedule of Effective Income Tax Rate Reconciliation (Details) - USD ($)	12 Months Ended
	Sep. 30, 2019	Sep. 30, 2018
Details
Effective Income Tax Rate Reconciliation at Federal Statutory Income Tax Rate, Amount	$ (7,000)	$ (15,000)
Impact of rate change effective January 1, 2018	0	579,000
Effective Income Tax Rate Reconciliation, Change in Deferred Tax Assets Valuation Allowance, Amount	(7,000)	(564,000)
Income Tax Expense (Benefit)	$ 0	$ 0

Note 3 - Related Party Transa_2

Note 3 - Related Party Transactions Disclosure (Details)	Sep. 30, 2019USD ($)
Details
Accrued Salaries, Current	$ 1,024,000

Note 4 - Major Customers (Detai

Note 4 - Major Customers (Details)	12 Months Ended
	Sep. 30, 2019	Sep. 30, 2018
Details
Concentration Risk, Additional Characteristic	the Company had three customers who individually accounted for 10% or more of the Company's oil and gas sales and who, in aggregate, accounted for 94% of oil and gas sales	the Company had three customers who individually accounted for 10% or more of the Company's oil and gas sales and who, in aggregate, accounted for 94% of oil and gas sales.
Concentration Risk, Other Risk	the three customers individually accounted for 46%, 28% and 20% of oil and gas sales	the three customers individually accounted for 37%, 32% and 25% of oil and gas sales.

Note 5 - Leases (Details)

Note 5 - Leases (Details) - USD ($)		12 Months Ended
		Sep. 30, 2019	Sep. 30, 2018
Details
Operating Leases, Rent Expense	[1]	$ 25,000	$ 25,000
[1]	The Company may cancel upon 30 days written notice and the payment of a termination fee of $4,000

Note 8 - Oil and Gas Explorat_6

Note 8 - Oil and Gas Exploration and Production Industries Disclosures: Capitalized Costs Relating to Oil and Gas Producing Activities Disclosure (Details)	Sep. 30, 2019USD ($)
Details
Capitalized Costs, Proved Properties	$ 333,000
Capitalized Costs, Accumulated Depreciation, Depletion, Amortization and Valuation Allowance Relating to Oil and Gas Producing Activities	(275,000)
Capitalized Costs, Oil and Gas Producing Activities, Net	$ 58,000

Note 8 - Oil and Gas Explorat_7

Note 8 - Oil and Gas Exploration and Production Industries Disclosures: Schedule of Proved Developed and Undeveloped Oil and Gas Reserve Quantities (Details)	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2017
Details
Net Proved Developed And Undeveloped Reserves	2,400	3,700	3,700
Proved Developed And Undeveloped Reserves, Revisions of previous estimates	(900)	500
Proved Developed And Undeveloped Reserve, Production	(400)	(500)

Note 8 - Oil and Gas Explorat_8

Note 8 - Oil and Gas Exploration and Production Industries Disclosures: Present Value of Estimated Future Net Revenue (Details) - USD ($)	Sep. 30, 2019	Sep. 30, 2018
Details
Future Net Cash Flows Relating to Proved Oil and Gas Reserves, Cash Inflows	$ 100,000	$ 225,000
Future Net Cash Flows Relating to Proved Oil and Gas Reserves, Production Costs	11,000	26,000
Future Net Cash Flows Relating to Proved Oil and Gas Reserves, Net Cash Flows	89,000	199,000
Future Net Cash Flows Relating to Proved Oil and Gas Reserves, Ten Percent Annual Discount for Estimated Timing of Cash Flows	(31,000)	(79,000)
Standardized Measure of Discounted Future Net Cash Flows Relating to Proved Oil and Gas Reserves	$ 58,000	$ 120,000

Note 8 - Oil and Gas Explorat_9

Note 8 - Oil and Gas Exploration and Production Industries Disclosures: Summary of Changes Present Value of Estimated Future Net Revenue (Details) - USD ($)	12 Months Ended
	Sep. 30, 2019	Sep. 30, 2018
Details
Present value of estimated future net revenue, beginning of year	$ 120,000	$ 71,000
Sales and Transfers of Oil and Gas Produced, Net of Production Costs	(52,000)	(59,000)
Net Increase (Decrease) in Sales and Transfer Prices and Production Costs	(12,000)	75,000
Revisions of quantity estimates	(25,000)	19,000
Accretion Expense	12,000	8,000
Standardized Measure of Discounted Future Net Cash Flow of Proved Oil and Gas Reserves, Other	15,000	6,000
Standardized Measure of Discounted Future Net Cash Flows Relating to Proved Oil and Gas Reserves	$ 58,000	$ 120,000