UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q ☒ Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the quarterly period ended December 31, 2021 or ☐ Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Commission File Number 1-5103 BARNWELL INDUSTRIES, INC. (Exact name of registrant as specified in its charter) Delaware 72-0496921 (State or other jurisdiction of incorporation or organization) (I. ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-K (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended September 30, 2021 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission File Number 1-5103 BARNWELL INDUSTRIES, INC. (Exact name of registrant as specified in its charter) Delaware 72-0496921 (State or other jurisdiction of incorporation or organization) ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q ☒ Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the quarterly period ended June 30, 2021 or ☐ Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Commission File Number 1-5103 BARNWELL INDUSTRIES, INC. (Exact name of registrant as specified in its charter) Delaware 72-0496921 (State or other jurisdiction of incorporation or organization) (I.R.S. ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q ☒ Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the quarterly period ended March 31, 2021 or ☐ Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Commission File Number 1-5103 BARNWELL INDUSTRIES, INC. (Exact name of registrant as specified in its charter) Delaware 72-0496921 (State or other jurisdiction of incorporation or organization) (I.R.S ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q ☒ Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the quarterly period ended December 31, 2020 or ☐ Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Commission File Number 1-5103 BARNWELL INDUSTRIES, INC. (Exact name of registrant as specified in its charter) Delaware 72-0496921 (State or other jurisdiction of incorporation or organization) (I. ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-K (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended September 30, 2020 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission File Number 1-5103 BARNWELL INDUSTRIES, INC. (Exact name of registrant as specified in its charter) Delaware 72-0496921 (State or other jurisdiction of incorporation or organization) ...

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, 2020 or [ ] Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Commission File Number 1-5103 BARNWELL INDUSTRIES, INC. (Exact name of registrant as specified in its charter) DELAWARE 72-0496921 (State or other jurisdiction of incorporation or organization) (I. ...

[FORM 10-Q Cover Page](index=1&type=section&id=FORM%2010-Q) This quarterly report on Form 10-Q for the period ended March 31, 2020, is filed by Barnwell Industries, Inc., a smaller reporting company - The report is a Quarterly Report on Form 10-Q for the period ended March 31, 2020, filed by Barnwell Industries, Inc. (BRN) with the SEC[1](index=1&type=chunk) - The registrant is a smaller reporting company and not an emerging growth company[3](index=3&type=chunk) - As of June 19, 2020, there were **8,277,160 shares of common stock outstanding**[4](index=4&type=chunk) [EXPLANATORY NOTE](index=2&type=section&id=EXPLANATORY%20NOTE) The Company delayed this Form 10-Q filing due to COVID-19 disruptions impacting operations, business, and financial assessments - The Company delayed filing this Form 10-Q due to disruptions caused by the COVID-19 pandemic, impacting operations, business, and the need for additional time to assess going concern and oil and natural gas property valuations[7](index=7&type=chunk) [PART I. FINANCIAL INFORMATION](index=3&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) This section presents the Company's unaudited condensed consolidated financial statements and management's discussion and analysis [Item 1. Financial Statements (Unaudited)](index=3&type=section&id=Item%201.%20Financial%20Statements%20(Unaudited)) This section presents the unaudited condensed consolidated financial statements, including the balance sheets, statements of operations, comprehensive (loss) income, equity, and cash flows, along with detailed notes explaining significant accounting policies, financial performance, and key financial positions [Condensed Consolidated Balance Sheets](index=3&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) This statement provides a snapshot of the Company's assets, liabilities, and equity at specific points in time Total Assets, Liabilities, and Equity (in thousands of USD) | ASSETS / LIABILITIES AND EQUITY | March 31, 2020 | September 30, 2019 | | :------------------------------ | :------------- | :----------------- | | Total assets | $18,765 | $18,302 | | Total liabilities | $16,625 | $16,973 | | Total equity | $2,140 | $1,329 | - Total assets increased by **$0.463 million (2.5%)** from September 30, 2019, to March 31, 2020, while total liabilities decreased by **$0.348 million (2.1%)** and total equity increased by **$0.811 million (61%)** over the same period[11](index=11&type=chunk)[12](index=12&type=chunk) [Condensed Consolidated Statements of Operations](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) This statement details the Company's revenues, expenses, and net loss over specific reporting periods Key Operating Metrics (Unaudited, in thousands of USD, except per share data) | Metric (Unaudited) | Three months ended March 31, 2020 | Three months ended March 31, 2019 | Six months ended March 31, 2020 | Six months ended March 31, 2019 | | :----------------- | :-------------------------------- | :-------------------------------- | :------------------------------ | :------------------------------ | | Total Revenues | $4,582 | $2,963 | $9,432 | $5,558 | | Net Loss | $(1,518) | $(2,151) | $(1,937) | $(6,724) | | Net Loss Attributable to Barnwell Industries, Inc. | $(1,514) | $(2,125) | $(1,928) | $(6,725) | | Basic and Diluted Net Loss Per Common Share | $(0.18) | $(0.26) | $(0.23) | $(0.81) | - Total revenues increased significantly for both the three-month (**54.6%**) and six-month (**69.7%**) periods ended March 31, 2020, compared to the prior year, driven by contract drilling[15](index=15&type=chunk) - Net loss attributable to Barnwell Industries, Inc. decreased by **$0.611 million (28.8%)** for the three months ended March 31, 2020, and by **$4.797 million (71.3%)** for the six months ended March 31, 2020, primarily due to a gain on asset sale and improved contract drilling results[15](index=15&type=chunk) [Condensed Consolidated Statements of Comprehensive (Loss) Income](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20(Loss)%20Income) This statement presents the net loss and other comprehensive income (loss) components, leading to total comprehensive (loss) income Comprehensive (Loss) Income Metrics (Unaudited, in thousands of USD) | Metric (Unaudited) | Three months ended March 31, 2020 | Three months ended March 31, 2019 | Six months ended March 31, 2020 | Six months ended March 31, 2019 | | :----------------- | :-------------------------------- | :-------------------------------- | :------------------------------ | :------------------------------ | | Net Loss | $(1,518) | $(2,151) | $(1,937) | $(6,724) | | Total Other Comprehensive (Loss) Income | $104 | $146 | $2,748 | $(250) | | Total Comprehensive (Loss) Income | $(1,414) | $(2,005) | $811 | $(6,974) | | Comprehensive (Loss) Income Attributable to Barnwell Industries, Inc. | $(1,410) | $(1,979) | $820 | $(6,975) | - Total comprehensive income attributable to Barnwell Industries, Inc. improved significantly, moving from a loss of **$(1.979 million)** to **$(1.410 million)** for the three months ended March 31, 2020, and from a loss of **$(6.975 million)** to a gain of **$0.820 million** for the six months ended March 31, 2020, primarily due to net actuarial gains and curtailment gains in retirement plans[17](index=17&type=chunk) [Condensed Consolidated Statements of Equity](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Equity) This statement outlines changes in the Company's equity components, including common stock, retained earnings, and other comprehensive loss Equity Components (in thousands of USD) | Equity Component | Balance at September 30, 2019 | Net Loss | Foreign Currency Translation Adjustments | Retirement Plans Adjustments | Balance at March 31, 2020 | | :--------------- | :---------------------------- | :------- | :--------------------------------------- | :--------------------------- | :------------------------ | | Common Stock | $4,223 | — | — | — | $4,223 | | Additional Paid-In Capital | $1,350 | — | — | — | $1,350 | | Retained Earnings (Accumulated Deficit) | $859 | $(1,928) | — | — | $(1,069) | | Accumulated Other Comprehensive Loss | $(2,917) | — | $89 | $2,659 | $(169) | | Treasury Stock | $(2,286) | — | — | — | $(2,286) | | Noncontrolling Interests | $100 | $(9) | — | — | $91 | | Total Equity | $1,329 | $(1,937) | $89 | $2,659 | $2,140 | - Total equity increased from **$1.329 million** at September 30, 2019, to **$2.140 million** at March 31, 2020, primarily driven by significant retirement plan adjustments (net actuarial gains and curtailment gain) totaling **$2.579 million** and **$1.699 million** respectively, which offset the net loss[21](index=21&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) This statement summarizes the cash inflows and outflows from operating, investing, and financing activities Cash Flow Activities (Unaudited, in thousands of USD) | Cash Flow Activity (Unaudited) | Six months ended March 31, 2020 | Six months ended March 31, 2019 | | :----------------------------- | :------------------------------ | :------------------------------ | | Net cash used in operating activities | $(252) | $(821) | | Net cash (used in) provided by investing activities | $(957) | $1,425 | | Net cash used in financing activities | — | $(110) | | Net (decrease) increase in cash and cash equivalents | $(1,227) | $462 | | Cash and cash equivalents at end of period | $3,386 | $6,427 | - Net cash used in operating activities decreased by **$0.569 million (69.3%)** for the six months ended March 31, 2020, compared to the prior year, primarily due to higher operating results in contract drilling and oil and natural gas segments[25](index=25&type=chunk) - Net cash from investing activities shifted from a **$1.425 million** inflow in the prior year to a **$0.957 million** outflow in the current year, a **$2.382 million** decrease, mainly due to increased oil and natural gas capital expenditures and lower proceeds from asset sales[25](index=25&type=chunk) [Notes to Condensed Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) These notes provide detailed explanations and additional information about the figures presented in the financial statements [1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES](index=9&type=section&id=1.%20SUMMARY%20OF%20SIGNIFICANT%20ACCOUNTING%20POLICIES) This note outlines the Company's principles of consolidation, the unaudited nature of interim financial information, the use of estimates, and recently adopted accounting pronouncements, highlighting the significant impact of the COVID-19 pandemic on its operations and financial outlook - The Company consolidates majority-owned subsidiaries and undivided interests in oil and natural gas joint ventures, while investments in unconsolidated entities are accounted for by the equity method[27](index=27&type=chunk)[28](index=28&type=chunk) - The condensed consolidated financial statements are unaudited and prepared in accordance with SEC rules, with management believing all necessary adjustments have been made[30](index=30&type=chunk)[31](index=31&type=chunk) - Significant estimates are required for deferred tax assets, asset retirement obligations, share-based payments, retirement plans, contract drilling costs, and oil and natural gas reserves[32](index=32&type=chunk)[34](index=34&type=chunk) - The Company adopted ASU No. 2016-02, 'Leases (Topic 842),' effective October 1, 2019, requiring recognition of right-of-use assets and lease liabilities on the balance sheet[35](index=35&type=chunk)[36](index=36&type=chunk) - The COVID-19 pandemic caused significant reductions in demand for oil and oil prices, leading to the suspension of proved undeveloped reserves development and a decline in real estate demand, creating material adverse effects on the Company's financial condition and outlook[38](index=38&type=chunk)[39](index=39&type=chunk)[41](index=41&type=chunk) [2. GOING CONCERN](index=11&type=section&id=2.%20GOING%20CONCERN) The Company expresses substantial doubt about its ability to continue as a going concern for the next year, citing a trend of losses, negative operating cash flows, and increased uncertainty in cash inflows due to the COVID-19 pandemic, which impacts its ability to fund both discretionary capital expenditures and non-discretionary outflows - Substantial doubt exists about the Company's ability to continue as a going concern for one year from the filing date, driven by a trend of losses, negative operating cash flows, and heightened uncertainty in cash inflows due to the COVID-19 pandemic[44](index=44&type=chunk)[45](index=45&type=chunk) - Future sustainability depends on sufficient operating cash flows from oil and natural gas, contract drilling, and land investment proceeds, which are highly sensitive to market volatility and not entirely within Barnwell's control[43](index=43&type=chunk) - Management is exploring potential funding sources, including non-core oil and natural gas property sales and the sale of its corporate office, but these are not yet probable or assured[45](index=45&type=chunk) [3. LOSS PER COMMON SHARE](index=12&type=section&id=3.%20LOSS%20PER%20COMMON%20SHARE) This note details the calculation of basic and diluted loss per common share, noting that potentially dilutive securities (stock options) were excluded as their inclusion would have been anti-dilutive due to the Company's net loss Loss Per Common Share Calculation (Unaudited, in thousands of USD, except share and per share data) | Metric (Unaudited) | Three months ended March 31, 2020 | Six months ended March 31, 2020 | Three months ended March 31, 2019 | Six months ended March 31, 2019 | | :----------------- | :-------------------------------- | :------------------------------ | :-------------------------------- | :------------------------------ | | Net Loss (Numerator) | $(1,514) | $(1,928) | $(2,125) | $(6,725) | | Shares (Denominator) | 8,277,160 | 8,277,160 | 8,277,160 | 8,277,160 | | Basic and Diluted Net Loss Per Share | $(0.18) | $(0.23) | $(0.26) | $(0.81) | - Options to purchase **60,000** and **318,750 shares** were excluded from diluted EPS calculations for the three and six months ended March 31, 2020 and 2019, respectively, because their effect would have been anti-dilutive[48](index=48&type=chunk) [4. INVESTMENTS](index=13&type=section&id=4.%20INVESTMENTS) This note provides a summary of Barnwell's non-current investments, primarily in Kukio Resort Land Development Partnerships, which are accounted for using the equity method. It details the Company's rights to payments from land sales and distributions, and the equity in loss of affiliates Non-Current Investments (in thousands of USD) | Investment Type | March 31, 2020 | September 30, 2019 | | :-------------- | :------------- | :----------------- | | Investment in Kukio Resort Land Development Partnerships | $862 | $930 | | Investment in leasehold land interest – Lot 4C | $50 | $50 | | Total non-current investments | $912 | $980 | - Barnwell holds indirect non-controlling ownership interests in Kukio Resort Land Development Partnerships (**19.6%** in some entities, **10.8%** in KD II), accounted for by the equity method[50](index=50&type=chunk)[51](index=51&type=chunk) - Equity in loss of affiliates was **$0.068 million** for the six months ended March 31, 2020, an improvement from **$0.286 million** in the prior year, reflecting improved operating results of the partnerships[55](index=55&type=chunk) - No cash distributions were received from the Kukio Resort Land Development Partnerships for the six months ended March 31, 2020, compared to **$0.314 million** in the prior year[52](index=52&type=chunk) - As of March 31, 2020, **19 of 80 single-family lots** remained to be sold in Increment I, with no sales during the current six-month period[60](index=60&type=chunk) [5. OIL AND NATURAL GAS PROPERTIES](index=16&type=section&id=5.%20OIL%20AND%20NATURAL%20GAS%20PROPERTIES) This note details the Company's oil and natural gas property activities, including the sale of properties in Canada, the absence of significant acquisitions, and a substantial impairment charge due to the COVID-19 pandemic's impact on oil prices and the Company's ability to fund development - In October 2019, Barnwell sold its interests in Progress area properties in Alberta, Canada, for **$0.594 million**, with proceeds credited to the full cost pool and no gain or loss recognized[67](index=67&type=chunk) - No significant oil and natural gas property acquisitions occurred during the six months ended March 31, 2020[69](index=69&type=chunk) - The Company incurred a **$1.637 million** ceiling test impairment for the three and six months ended March 31, 2020, due to the suspension of proved undeveloped reserves development in the Twining area, caused by COVID-19 related oil price impacts and financial uncertainties[74](index=74&type=chunk) - Further impairment write-downs are likely in future periods if oil prices remain at current low levels, as the 12-month historical rolling average oil price used in the ceiling test is expected to decline by approximately **18%** for the quarter ending June 30, 2020[75](index=75&type=chunk) [6. RETIREMENT PLANS](index=17&type=section&id=6.%20RETIREMENT%20PLANS) This note outlines the Company's defined benefit pension plan, supplemental employee retirement plan (SERP), and postretirement medical plan. It highlights the freeze on future benefit accruals for the Pension Plan and SERP, which resulted in a significant actuarial gain and reduction in unrecognized pension benefit costs Net Periodic Benefit (Income) Cost (in thousands of USD) | Net Periodic Benefit (Income) Cost | Three months ended March 31, 2020 | Six months ended March 31, 2020 | | :------------------------------- | :-------------------------------- | :------------------------------ | | Pension Plan | $(100) | $(41) | | SERP | $15 | $(13) | | Postretirement Medical | $40 | $80 | - The Company froze all future benefit accruals for its Pension Plan and SERP effective December 31, 2019, leading to an **$0.880 million** actuarial gain and a **$1.699 million** reduction in unrecognized pension benefit costs recorded in accumulated other comprehensive loss[82](index=82&type=chunk) - No contributions are expected for the Pension Plan in fiscal 2020, and the SERP and Postretirement Medical plans are unfunded, with expected payments for fiscal 2020 being immaterial[83](index=83&type=chunk) [7. INCOME TAXES](index=19&type=section&id=7.%20INCOME%20TAXES) This note details the components of loss before income taxes and the income tax benefit, explaining the non-customary relationship between consolidated taxes and pretax results due to separate taxation in Canada and the U.S. It also outlines the impact of the CARES Act on AMT credits and NOLs Loss Before Income Taxes (Unaudited, in thousands of USD) | Loss Before Income Taxes (Unaudited) | Three months ended March 31, 2020 | Six months ended March 31, 2020 | | :----------------------------------- | :-------------------------------- | :------------------------------ | | United States | $701 | $554 | | Canada | $(2,215) | $(2,484) | | Total | $(1,514) | $(1,930) | Income Tax Benefit (Unaudited, in thousands of USD) | Income Tax Benefit (Unaudited) | Three months ended March 31, 2020 | Six months ended March 31, 2020 | | :----------------------------- | :-------------------------------- | :------------------------------ | | Current | $0 | $7 | | Deferred | $0 | $(9) | | Total | $0 | $(2) | - The CARES Act allowed the Company to elect to take the entire refundable Alternative Minimum Tax (AMT) credit carryover in its U.S. federal income tax return for the year ended September 30, 2019, reclassifying the remaining **50%** to current income taxes receivable[87](index=87&type=chunk) - The CARES Act also suspended the **80%** taxable income restriction on Net Operating Loss (NOL) utilization for tax years beginning after December 31, 2017, through the 2020 tax year[88](index=88&type=chunk)[89](index=89&type=chunk) [8. REVENUE FROM CONTRACTS WITH CUSTOMERS](index=20&type=section&id=8.%20REVENUE%20FROM%20CONTRACTS%20WITH%20CUSTOMERS) This note disaggregates revenue by stream, segment, geographical region, and timing of recognition. It also provides details on contract balances, performance obligations (backlog), contract fulfillment costs, and the impact of a water well re-drill issue on revenue and margin Revenue Stream (Three months ended March 31, 2020, in thousands of USD) | Revenue Stream (Three months ended March 31, 2020) | Amount | | :--------------------------------- | :----- | | Oil | $1,478 | | Natural gas | $307 | | Natural gas liquids | $125 | | Drilling and pump | $2,593 | | Other | $70 | | Total revenues before interest income | $4,573 | Revenue Stream (Six months ended March 31, 2020, in thousands of USD) | Revenue Stream (Six months ended March 31, 2020) | Amount | | :-------------------------------- | :----- | | Oil | $3,203 | | Natural gas | $629 | | Natural gas liquids | $219 | | Drilling and pump | $5,239 | | Other | $126 | | Total revenues before interest income | $9,416 | Contract Balances (in thousands of USD) | Contract Balances | March 31, 2020 | September 30, 2019 | | :---------------- | :------------- | :----------------- | | Accounts receivables from contracts with customers | $1,928 | $1,322 | | Contract assets | $509 | $344 | | Contract liabilities | $1,141 | $1,633 | - For the six months ended March 31, 2020, **$0.707 million** of revenue was recognized from amounts previously included in contract liabilities at the beginning of the period, a significant increase from **$0.022 million** in the prior year[99](index=99&type=chunk) - A water well re-drill issue resulted in a **$0.979 million** revenue reversal and an approximate **$0.750 million** decrease in estimated contract margin for the three months ended March 31, 2020, as the initial well was abandoned and a new one drilled at no incremental customer cost[104](index=104&type=chunk) [9. SEGMENT INFORMATION](index=24&type=section&id=9.%20SEGMENT%20INFORMATION) This note provides a breakdown of Barnwell's financial performance by its three reporting segments: oil and natural gas, land investment, and contract drilling. It highlights segment revenues, depletion, depreciation, and amortization, impairment, and operating profit (loss) Segment Revenues (Unaudited, in thousands of USD) | Segment Revenues (Unaudited) | Three months ended March 31, 2020 | Six months ended March 31, 2020 | | :--------------------------- | :-------------------------------- | :------------------------------ | | Oil and natural gas | $1,910 | $4,051 | | Contract drilling | $2,593 | $5,239 | | Land investment | $0 | $0 | | Other | $70 | $126 | | Total before interest income | $4,573 | $9,416 | Segment Operating Profit (Loss) (Unaudited, in thousands of USD) | Segment Operating Profit (Loss) (Unaudited) | Three months ended March 31, 2020 | Six months ended March 31, 2020 | | :------------------------------------------ | :-------------------------------- | :------------------------------ | | Oil and natural gas | $(1,596) | $(1,274) | | Contract drilling | $731 | $1,478 | | Land investment | $0 | $0 | | Other | $58 | $100 | | Gain on sale of asset | $1,336 | $1,336 | | Total operating profit (loss) | $529 | $1,640 | - The contract drilling segment significantly improved, moving from an operating loss of **$(0.304 million)** in the prior year to an operating profit of **$0.731 million** for the three months ended March 31, 2020, and from an operating loss of **$(0.514 million)** to an operating profit of **$1.478 million** for the six months ended March 31, 2020[108](index=108&type=chunk) - The oil and natural gas segment incurred a **$1.637 million** impairment for both the three and six months ended March 31, 2020, contributing to its operating loss[108](index=108&type=chunk) [10. ACCUMULATED OTHER COMPREHENSIVE LOSS](index=25&type=section&id=10.%20ACCUMULATED%20OTHER%20COMPREHENSIVE%20LOSS) This note details the changes in accumulated other comprehensive loss, primarily driven by foreign currency translation adjustments and significant retirement plan adjustments, including net actuarial gains and prior service cost amortization Components of Accumulated Other Comprehensive Loss (in thousands of USD) | Component of Accumulated Other Comprehensive Loss | March 31, 2020 | | :------------------------------------------------ | :------------- | | Foreign currency translation | $780 | | Retirement plans benefit cost | $(949) | | Accumulated other comprehensive loss, net of taxes | $(169) | - Accumulated other comprehensive loss improved from **$(2.917 million)** at September 30, 2019, to **$(0.169 million)** at March 31, 2020, largely due to **$2.579 million** in net actuarial gains arising during the period for retirement plans[21](index=21&type=chunk)[110](index=110&type=chunk) [11. FAIR VALUE MEASUREMENTS](index=25&type=section&id=11.%20FAIR%20VALUE%20MEASUREMENTS) This note explains that the carrying values of most current assets and liabilities approximate their fair values. It details the nonrecurring fair value measurements for oil and natural gas properties and asset retirement obligations, which are based on Level 3 inputs using discounted cash flow models and various market assumptions - Fair values of oil and natural gas properties and asset retirement obligations are estimated using **Level 3 fair value measurements**, based on discounted cash flow models and significant unobservable inputs[112](index=112&type=chunk)[114](index=114&type=chunk) - Key Level 3 assumptions include future commodity prices, estimated quantities of reserves, timing and amount of future development and operating costs, production rates, and risk-adjusted discount rates[112](index=112&type=chunk)[114](index=114&type=chunk) [12. LEASES AND GAIN ON SALE OF ASSET](index=26&type=section&id=12.%20LEASES%20AND%20GAIN%20ON%20SALE%20OF%20ASSET) This note discusses the adoption of ASU No. 2016-02, 'Leases (Topic 842),' which led to the recognition of operating lease right-of-use (ROU) assets and liabilities. It also reports a significant gain from the sale of a leasehold interest in a contract drilling segment maintenance and storage yard - Effective October 1, 2019, the Company adopted ASC 842, recognizing **$2.589 million** in operating lease ROU assets and corresponding lease liabilities, with no impact on retained earnings or statements of operations[115](index=115&type=chunk)[116](index=116&type=chunk) - In March 2020, the Company sold a leasehold interest in a contract drilling segment yard for **$1.100 million cash**, recognizing a gain of **$1.336 million**, which included a **$0.236 million** gain from the reversal of the lease liability[117](index=117&type=chunk) Lease Components (in thousands of USD) | Lease Component | March 31, 2020 | | :-------------- | :------------- | | Operating lease right-of-use assets | $292 | | Current portion of operating lease liabilities | $102 | | Operating lease liabilities | $196 | | Total lease liabilities | $298 | - Total lease cost for the six months ended March 31, 2020, was **$0.238 million**, with a weighted-average remaining lease term of **3.8 years** and a weighted-average discount rate of **5.84%**[123](index=123&type=chunk) [13. CONTINGENCIES](index=28&type=section&id=13.%20CONTINGENCIES) This note addresses legal and regulatory matters, stating that no claims are expected to have a material adverse effect. It also discusses a specific contingency regarding water wells that did not meet plumbness specifications, for which a five-year warranty was executed for one well, but no accruals have been recorded as management believes there is no probable or estimable liability - Management is not aware of any claims or litigation likely to have a material adverse effect on the Company's results of operations, financial position, or liquidity[125](index=125&type=chunk) - A five-year warranty agreement was executed for a water well that did not meet plumbness specifications, obligating the Company to replace pumps or drill a new well under certain conditions; however, no accruals were recorded as of March 31, 2020, as no probable or estimable contingent liability was identified[126](index=126&type=chunk) [14. INFORMATION RELATING TO THE CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS](index=28&type=section&id=14.%20INFORMATION%20RELATING%20TO%20THE%20CONDENSED%20CONSOLIDATED%20STATEMENTS%20OF%20CASH%20FLOWS) This note provides supplemental disclosure of cash flow information, including cash paid for income taxes and changes in capital expenditure accruals related to oil and natural gas exploration, development, and asset retirement obligations Supplemental Cash Flow Information (in thousands of USD) | Supplemental Cash Flow Information | Six months ended March 31, 2020 | Six months ended March 31, 2019 | | :------------------------------- | :------------------------------ | :------------------------------ | | Income taxes refunded, net | $(94) | $(2,249) | - Capital expenditure accruals for oil and natural gas exploration and development increased by **$0.670 million** during the six months ended March 31, 2020, compared to a decrease of **$0.105 million** in the prior year[127](index=127&type=chunk) - Accruals for oil and natural gas asset retirement obligations increased by **$0.527 million** during the six months ended March 31, 2020, compared to **$0.267 million** in the prior year[127](index=127&type=chunk) [15. RELATED PARTY TRANSACTIONS](index=28&type=section&id=15.%20RELATED%20PARTY%20TRANSACTIONS) This note describes related party transactions involving Kaupulehu Developments' entitlement to payments from land sales and distributions from KD I and KD II, which are part of the Kukio Resort Land Development Partnerships where Barnwell holds non-controlling interests. It highlights changes to these arrangements and the absence of payments in the current period - Kaupulehu Developments is entitled to payments from KD I and KD II for lot and residential unit sales, and previously received **50%** of distributions from KD II up to **$8.0 million**, of which **$3.5 million** was received by March 6, 2019[128](index=128&type=chunk) - Effective March 7, 2019, new agreements with KD II entitle Kaupulehu Developments to **15%** of KD II's distributions (borne by KDK) and a priority payout of **10%** of KDK's cumulative net profits from Increment II sales (up to **$3.0 million**)[63](index=63&type=chunk) - No payments were made to Kaupulehu Developments by KD I or KD II during the six months ended March 31, 2020, compared to **$0.165 million** received in the prior year from a single lot sale[130](index=130&type=chunk) [16. SUBSEQUENT EVENTS](index=29&type=section&id=16.%20SUBSEQUENT%20EVENTS) This note discloses significant events occurring after the reporting period, including the Company's receipt of a Paycheck Protection Program (PPP) loan and Canada Emergency Wage Subsidy (CEWS), and its non-compliance with NYSE American continued listing standards, with an accepted plan for compliance but facing challenges due to the COVID-19 pandemic - On April 28, 2020, the Company received an unsecured **$0.147 million** PPP loan under the CARES Act, with an expectation of forgiveness if proceeds are used for eligible expenses[131](index=131&type=chunk) - The Company's Canadian subsidiaries qualified for the Canada Emergency Wage Subsidy (CEWS), receiving approximately **$0.060 million** in subsidies as of the report date[132](index=132&type=chunk) - The Company is not in compliance with NYSE American continued listing standards due to low stockholders' equity and sustained net losses, but its compliance plan was accepted, granting an extension until July 13, 2021; however, COVID-19 impacts may hinder achieving compliance[133](index=133&type=chunk)[134](index=134&type=chunk)[135](index=135&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=31&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section provides management's perspective on the Company's financial condition and results of operations, including forward-looking statements, critical accounting policies, and the current outlook. It details the impact of COVID-19, going concern issues, and performance across its oil and natural gas, land investment, and contract drilling segments, along with liquidity and capital resources [Cautionary Statement Relevant to Forward-Looking Information](index=31&type=section&id=Cautionary%20Statement%20Relevant%20to%20Forward-Looking%20Information) This statement warns investors that the report contains forward-looking information subject to risks and uncertainties, and the Company disclaims any obligation to update it - The report contains forward-looking statements subject to risks, uncertainties, and assumptions that could cause actual results to differ materially from expectations[138](index=138&type=chunk) - Investors are cautioned not to place undue reliance on these statements, and the Company disclaims any obligation to update or revise them[138](index=138&type=chunk) [Critical Accounting Policies and Estimates](index=31&type=section&id=Critical%20Accounting%20Policies%20and%20Estimates) This section identifies the most significant accounting policies and estimates that require management's judgment and can materially affect financial reporting - The most critical accounting policies and estimates relate to the full-cost ceiling calculation and depletion of oil and natural gas properties, contract drilling revenue and expense estimation, and income tax calculation[139](index=139&type=chunk) - No significant changes to these critical accounting policies and estimates occurred during the three and six months ended March 31, 2020[139](index=139&type=chunk) [Current Outlook](index=31&type=section&id=Current%20Outlook) This section provides management's perspective on the Company's current business environment, including the impact of COVID-19 and recently issued accounting standards [Impact of COVID-19](index=31&type=section&id=Impact%20of%20COVID-19) The COVID-19 pandemic has materially and adversely affected the Company's global economy, markets, and business, leading to significant reductions in oil demand and prices, suspension of proved undeveloped reserves development, and declining real estate demand. The future course and severity of its impact remain highly uncertain - The COVID-19 pandemic caused significant reductions in demand for oil and oil prices, leading the Company to suspend development of proved undeveloped reserves and impacting its financial condition[142](index=142&type=chunk) - Demand for real estate in the Company's land investment segment has declined, with no developer lot sales in the recent period[142](index=142&type=chunk) - The impact of COVID-19 on the contract drilling segment's ability or desire for customers to continue work is uncertain, and contract discontinuations would materially adversely affect the Company[142](index=142&type=chunk) [Going Concern](index=32&type=section&id=Going%20Concern) The Company faces substantial doubt about its ability to continue as a going concern for the next year due to a history of losses, negative operating cash flows, and increased uncertainty in cash inflows from its segments, exacerbated by the COVID-19 pandemic. This uncertainty impacts its capacity to fund both discretionary capital expenditures and non-discretionary expenses - Substantial doubt exists about the Company's ability to continue as a going concern for one year from the filing date, stemming from a trend of losses, negative operating cash flows, and increased uncertainty in cash inflows due to COVID-19[145](index=145&type=chunk)[148](index=148&type=chunk) - The Company's future business sustainability relies on sufficient operating cash flows from its oil and natural gas, contract drilling, and land investment segments, which are highly sensitive to market volatility[144](index=144&type=chunk) - Management is exploring potential funding sources, including non-core oil and natural gas property sales and the sale of its corporate office, but these are not yet probable or assured[146](index=146&type=chunk)[148](index=148&type=chunk) [Impact of Recently Issued Accounting Standards on Future Filings](index=33&type=section&id=Impact%20of%20Recently%20Issued%20Accounting%20Standards%20on%20Future%20Filings) The Company is evaluating the impact of several recently issued ASUs, including those related to credit losses (CECL), fair value measurement disclosures, defined benefit plan disclosures, consolidation guidance for variable interest entities, and simplifying income tax accounting. Most are not expected to have a material impact on its consolidated financial statements - The Company is evaluating ASU No. 2016-13, 'Financial Instruments - Credit Losses (Topic 326),' which replaces the incurred loss model with the CECL model, effective for annual periods beginning after December 15, 2022[149](index=149&type=chunk) - ASU No. 2018-13 (Fair Value Measurement), ASU No. 2018-14 (Defined Benefit Plans), ASU No. 2018-17 (Consolidation), and ASU No. 2019-12 (Income Taxes) are not expected to have a material impact on Barnwell's consolidated financial statements[150](index=150&type=chunk)[151](index=151&type=chunk)[152](index=152&type=chunk)[153](index=153&type=chunk) [Overview](index=33&type=section&id=Overview) This section provides a high-level description of the Company's business segments: oil and natural gas, land investment, and contract drilling [Oil and Natural Gas Segment](index=34&type=section&id=Oil%20and%20Natural%20Gas%20Segment) The Oil and Natural Gas Segment focuses on acquiring, developing, producing, and selling oil and natural gas properties in Canada, initiating and participating in operations, and evaluating third-party proposals - Barnwell's oil and natural gas segment is involved in the acquisition and development of properties in Canada, participating in exploratory and developmental operations[156](index=156&type=chunk) [Land Investment Segment](index=34&type=section&id=Land%20Investment%20Segment) The Land Investment Segment involves interests in Hawaii land, primarily through Kaupulehu Developments and other partnerships. It includes rights to percentage of sales payments from residential lot sales in Increment I and II of Kaupulehu Lot 4A, and an interest in undeveloped conservation land. Recent changes include new agreements with a development partner for Increment II - The segment holds rights to percentage of sales payments from KD I for single-family residential lots in Increment I of Kaupulehu Lot 4A, with **19 of 80 lots** remaining to be sold as of March 31, 2020[157](index=157&type=chunk) - New agreements for Increment II, effective March 7, 2019, grant Kaupulehu Developments **15%** of KD II's distributions and a priority payout of **10%** of KDK's net profits (up to **$3.0 million**), along with rights to seven single-family residential lots at no cost[159](index=159&type=chunk)[161](index=161&type=chunk) - Barnwell holds an indirect **19.6%** non-controlling ownership interest in KD Kukio Resorts, LLLP, KD Maniniowali, LLLP, and KD I, and a **10.8%** interest in KD II through KDK[162](index=162&type=chunk) [Contract Drilling Segment](index=35&type=section&id=Contract%20Drilling%20Segment) The Contract Drilling Segment provides water and water monitoring well drilling, and water pumping system installation and repair services in Hawaii. Its results are highly dependent on the volume, value, and timing of contracts from governmental and private entities, leading to significant fluctuations - Barnwell's contract drilling segment drills water and water monitoring wells and installs/repairs water pumping systems in Hawaii[164](index=164&type=chunk) - Segment results are highly dependent on the quantity, dollar value, and timing of contracts awarded by governmental and private entities, leading to significant fluctuations[164](index=164&type=chunk) [Results of Operations](index=35&type=section&id=Results%20of%20Operations) This section analyzes the Company's financial performance, detailing revenues, expenses, and net income (loss) across its segments [Summary](index=35&type=section&id=Summary) The Company's net loss attributable to Barnwell decreased significantly for both the three and six months ended March 31, 2020, compared to the prior year. This improvement was driven by a gain on asset sale and increased contract drilling operating results, partially offset by a decrease in oil and natural gas operating results due to impairment and higher general and administrative expenses Net Loss Attributable to Barnwell (in thousands of USD) | Metric | Three months ended March 31, 2020 | Three months ended March 31, 2019 | Six months ended March 31, 2020 | Six months ended March 31, 2019 | | :----- | :-------------------------------- | :-------------------------------- | :------------------------------ | :------------------------------ | | Net loss attributable to Barnwell | $(1,514) | $(2,125) | $(1,928) | $(6,725) | - A **$1.336 million** gain from the sale of a leasehold interest in a contract drilling segment yard contributed to improved results in both periods[165](index=165&type=chunk)[168](index=168&type=chunk) - Contract drilling segment operating results increased by **$1.035 million** for the three months and **$1.992 million** for the six months, primarily due to increased activity from a significant well drilling contract[165](index=165&type=chunk)[168](index=168&type=chunk) - Oil and natural gas segment operating results decreased by **$1.344 million** for the three months due to a **$1.637 million** impairment, but improved by **$2.002 million** for the six months due to higher oil prices and production, and a lower impairment compared to the prior year[167](index=167&type=chunk)[168](index=168&type=chunk) - General and administrative expenses increased by **$0.570 million** for the three months and **$0.518 million** for the six months, mainly due to higher legal, proxy solicitation, and public relations costs[167](index=167&type=chunk)[168](index=168&type=chunk) [General](index=36&type=section&id=General) Barnwell's operations in the U.S. and Canada expose it to foreign currency translation and transaction gains and losses. While the Canadian dollar's average exchange rate remained relatively stable, its spot rate decreased, leading to foreign currency translation adjustments in other comprehensive income - The Company is subject to foreign currency fluctuations between the Canadian and U.S. dollars, but has not engaged in hedging transactions[169](index=169&type=chunk) - The Canadian dollar's average exchange rate decreased **1%** for the three months and remained unchanged for the six months ended March 31, 2020, compared to the prior year[170](index=170&type=chunk) - Other comprehensive income from foreign currency translation adjustments was **$0.084 million** for the three months and **$0.089 million** for the six months ended March 31, 2020, representing a **$0.046 million** decrease and a **$0.372 million** change from a loss, respectively, compared to the prior year[170](index=170&type=chunk)[172](index=172&type=chunk) [Oil and Natural Gas](index=37&type=section&id=Oil%20and%20Natural%20Gas) The oil and natural gas segment experienced a decrease in operating results for the three months but an increase for the six months ended March 31, 2020. This was influenced by fluctuating commodity prices, increased oil production from new wells, and significant impairment charges. The segment faces high uncertainty due to volatile oil prices exacerbated by the COVID-19 pandemic Average Price Per Unit (Unaudited) | Metric (Unaudited) | Three months ended March 31, 2020 | Three months ended March 31, 2019 | Six months ended March 31, 2020 | Six months ended March 31, 2019 | | :----------------- | :-------------------------------- | :-------------------------------- | :------------------------------ | :------------------------------ | | Natural Gas (Mcf) Average Price Per Unit | $1.56 | $1.88 | $1.69 | $1.55 | | Oil (Bbls) Average Price Per Unit | $34.23 | $44.76 | $40.67 | $34.90 | | Liquids (Bbls) Average Price Per Unit | $20.83 | $27.75 | $19.87 | $31.62 | Net Production (Unaudited) | Net Production (Unaudited) | Three months ended March 31, 2020 | Three months ended March 31, 2019 | Six months ended March 31, 2020 | Six months ended March 31, 2019 | | :------------------------- | :-------------------------------- | :-------------------------------- | :------------------------------ | :------------------------------ | | Natural Gas (Mcf) | 187,000 | 171,000 | 355,000 | 311,000 | | Oil (Bbls) | 44,000 | 33,000 | 79,000 | 68,000 | | Liquids (Bbls) | 6,000 | 4,000 | 11,000 | 9,000 | - The segment generated a **$1.596 million** operating loss for the three months ended March 31, 2020, but a **$1.274 million** operating loss for the six months, an improvement of **$2.002 million** compared to the prior year's **$3.276 million** loss[176](index=176&type=chunk) - Oil and natural gas revenues decreased **1%** for the three months but increased **28%** for the six months ended March 31, 2020, driven by higher oil prices and production from new wells in Spirit River and Twining areas[177](index=177&type=chunk) - A **$1.637 million** ceiling test impairment was recorded for both the three and six months ended March 31, 2020, due to the suspension of proved undeveloped reserves development amid COVID-19 uncertainties[176](index=176&type=chunk) [Sale of Interest in Leasehold Land](index=39&type=section&id=Sale%20of%20Interest%20in%20Leasehold%20Land) No sales of interest in leasehold land occurred during the six months ended March 31, 2020, resulting in no revenue from this segment, compared to $0.165 million in the prior year. The Company does not have a controlling interest in the relevant land increments, and future sales amounts are uncertain Sale of Interest in Leasehold Land (Unaudited, in thousands of USD) | Metric (Unaudited) | Six months ended March 31, 2020 | Six months ended March 31, 2019 | | :----------------- | :------------------------------ | :------------------------------ | | Revenues - sale of interest in leasehold land | $0 | $165 | | Fees - included in general and administrative expenses | $0 | $(20) | | Sale of interest in leasehold land, net of fees paid | $0 | $145 | - No single-family lots were sold during the six months ended March 31, 2020, from Increment I, where **19 of 80 lots** remain to be sold[184](index=184&type=chunk)[185](index=185&type=chunk) - The Company does not have a controlling interest in Increments I and II, making future sales amounts uncertain[185](index=185&type=chunk) [Contract Drilling](index=39&type=section&id=Contract%20Drilling) The contract drilling segment saw significant increases in revenues and operating profit for both the three and six months ended March 31, 2020, primarily due to a large well drilling contract with a fixed-rate structure. However, these gains were partially offset by a water well re-drill issue that resulted in revenue reversal and margin decrease. The segment faces demand volatility and COVID-19 related uncertainties - Contract drilling revenues increased by **$1.606 million (163%)** for the three months and **$3.089 million (144%)** for the six months ended March 31, 2020, compared to the prior year[186](index=186&type=chunk)[187](index=187&type=chunk) - The segment generated an operating profit of **$0.731 million** for the three months and **$1.478 million** for the six months ended March 31, 2020, a significant increase from prior year losses, primarily due to a large fixed-rate well drilling contract[186](index=186&type=chunk)[187](index=187&type=chunk) - A water well re-drill issue led to a **$0.979 million** revenue reversal and an approximate **$0.750 million** decrease in estimated contract margin for the three and six months ended March 31, 2020[190](index=190&type=chunk) - The segment faces significant demand volatility and uncertainty regarding customer continuation of contracts due to COVID-19, which could materially impact financial condition[192](index=192&type=chunk) [General and Administrative Expenses](index=41&type=section&id=General%20and%20Administrative%20Expenses) General and administrative expenses increased for both the three and six months ended March 31, 2020, primarily due to higher legal, proxy solicitation, proxy advisory, and public relations costs - General and administrative expenses increased by **$0.570 million (39%)** for the three months and **$0.518 million (17%)** for the six months ended March 31, 2020[194](index=194&type=chunk) - These increases were primarily driven by higher legal, proxy solicitation, proxy advisory, and public relations costs[194](index=194&type=chunk) [Depletion, Depreciation, and Amortization](index=41&type=section&id=Depletion,%20Depreciation,%20and%20Amortization) Depletion, depreciation, and amortization expenses decreased for both the three and six months ended March 31, 2020, primarily due to a decrease in oil and natural gas depletion rates resulting from prior year impairment write-downs - Depletion, depreciation, and amortization decreased by **$0.071 million (9%)** for the three months and **$0.185 million (12%)** for the six months ended March 31, 2020[195](index=195&type=chunk) - The decrease was primarily attributable to lower oil and natural gas depletion rates, which were impacted by impairment write-downs in the prior year[195](index=195&type=chunk) [Impairment of Assets](index=41&type=section&id=Impairment%20of%20Assets) The Company recorded a $1.637 million ceiling test impairment for its oil and natural gas properties for both the three and six months ended March 31, 2020. This was due to the suspension of proved undeveloped reserves development in the Twining area, driven by the impact of COVID-19 on oil prices and the Company's financial outlook. Further impairments are likely if oil prices remain low - A **$1.637 million** ceiling test impairment was incurred for the three and six months ended March 31, 2020, due to the Company's suspension of proved undeveloped reserves development in the Twining area[197](index=197&type=chunk) - The impairment was a direct result of the impact of COVID-19 on oil prices and the extreme uncertainties affecting the Company's financial outlook and ability to fund capital expenditures[197](index=197&type=chunk) - Further impairment write-downs are likely in future periods if oil prices remain at current low levels, as the 12-month historical rolling average oil price is projected to decline by approximately **18%** for the quarter ending June 30, 2020[198](index=198&type=chunk) [Gain on Sale of Asset](index=42&type=section&id=Gain%20on%20Sale%20of%20Asset) In March 2020, the Company sold its leasehold interest in a contract drilling segment maintenance and storage yard for $1.100 million cash, resulting in a recognized gain of $1.336 million, which included a gain from the reversal of the lease liability - The Company sold its leasehold interest in a contract drilling segment maintenance and storage yard for **$1.100 million cash** in March 2020[201](index=201&type=chunk) - A gain of **$1.336 million** was recognized from this sale, including a **$0.236 million** gain from the reversal of the storage yard's lease liability[201](index=201&type=chunk) [Equity in Loss of Affiliates](index=42&type=section&id=Equity%20in%20Loss%20of%20Affiliates) Barnwell's equity in loss of affiliates, primarily from its investment in Kukio Resort Land Development Partnerships, decreased significantly for both the three and six months ended March 31, 2020, reflecting improved operating results of the investee partnerships - Equity in loss of affiliates was **$0.025 million** for the three months and **$0.068 million** for the six months ended March 31, 2020, a decrease from **$0.207 million** and **$0.286 million** respectively in the prior year[202](index=202&type=chunk) - The improvement in allocated partnership losses is due to the investee partnerships' improved operating results[202](index=202&type=chunk) [Income Taxes](index=42&type=section&id=Income%20Taxes) The Company's effective consolidated income tax benefit rate was nil for the three and six months ended March 31, 2020, primarily because it is taxed separately in Canada and the U.S., and most deferred tax assets are not expected to have a future benefit - The effective consolidated income tax benefit rate was **nil** for both the three and six months ended March 31, 2020, compared to **2%** in the prior year periods[203](index=203&type=chunk) - Consolidated taxes do not bear a customary relationship to pretax results due to separate taxation in Canada and the U.S., and the lack of estimated future benefit for most deferred tax assets[204](index=204&type=chunk) [Net (Loss) Earnings Attributable to Non-controlling Interests](index=42&type=section&id=Net%20(Loss)%20Earnings%20Attributable%20to%20Non-controlling%20Interests) Net loss attributable to non-controlling interests decreased significantly for the three months ended March 31, 2020, due to lower Kukio Land Development Partnership losses. For the six-month period, it shifted from net earnings to a net loss, primarily due to the absence of percentage of sales proceeds received in the prior year - Net loss attributable to non-controlling interests decreased by **$0.022 million (85%)** to **$0.004 million** for the three months ended March 31, 2020, due to lower Kukio Land Development Partnership losses[206](index=206&type=chunk) - For the six months ended March 31, 2020, net loss attributable to non-controlling interests was **$0.009 million**, a **$0.010 million (1,000%)** change from net earnings of **$0.001 million** in the prior year, primarily due to the absence of percentage of sales proceeds[207](index=207&type=chunk)[208](index=208&type=chunk) [Liquidity and Capital Resources](index=43&type=section&id=Liquidity%20and%20Capital%20Resources) This section discusses the Company's ability to generate and manage cash, including its cash flows, going concern status, capital expenditures, and compliance with listing standards [Cash Flows](index=43&type=section&id=Cash%20Flows) The Company's primary liquidity sources are cash on hand, operating cash flow, and land investment proceeds. Cash flows used in operations decreased significantly, while investing activities shifted from providing to using cash, primarily due to increased oil and natural gas capital expenditures and lower asset sale proceeds. There were no financing cash flows in the current period - Barnwell's primary liquidity sources are cash on hand, cash flow from operations, and land investment segment proceeds, with **$2.041 million** in working capital at March 31, 2020[209](index=209&type=chunk) - Cash flows used in operations decreased by **$0.569 million (69.3%)** to **$0.252 million** for the six months ended March 31, 2020, due to higher operating results in contract drilling and oil and natural gas segments[210](index=210&type=chunk) - Cash flows from investing activities shifted from a **$1.425 million** inflow in the prior year to a **$0.957 million** outflow in the current year, a **$2.382 million** decrease, mainly due to increased oil and natural gas capital expenditures and lower proceeds from asset sales[211](index=211&type=chunk) - There were no cash flows from financing activities during the six months ended March 31, 2020, compared to **$0.110 million** used in the prior year for non-controlling interest distributions[212](index=212&type=chunk) [Going Concern](index=43&type=section&id=Going%20Concern) The Company reiterates substantial doubt about its ability to continue as a going concern for the next year, citing a history of losses, negative operating cash flows, and heightened uncertainty in cash inflows due to the COVID-19 pandemic. This impacts its capacity to fund both discretionary capital expenditures and non-discretionary expenses, despite exploring potential funding sources - Substantial doubt exists about the Company's ability to continue as a going concern for one year from the filing date, due to a trend of losses, negative operating cash flows, and increased uncertainty in cash inflows from its segments, exacerbated by COVID-19[214](index=214&type=chunk)[216](index=216&type=chunk)[217](index=217&type=chunk) - The Company's ability to sustain its business depends on sufficient operating cash flows from its oil and natural gas, contract drilling, and land investment segments, which are highly sensitive to market volatility[213](index=213&type=chunk) - Management is investigating potential funding sources, including non-core oil and natural gas property sales and the sale of its corporate office, but these are not yet probable or assured[217](index=217&type=chunk) [Oil and Natural Gas Capital Expenditures](index=44&type=section&id=Oil%20and%20Natural%20Gas%20Capital%20Expenditures) Oil and natural gas capital expenditures significantly increased for the six months ended March 31, 2020, primarily due to new development wells in the Twining and Spirit River areas. However, due to COVID-19 uncertainties, investments in oil and natural gas properties have been indefinitely suspended - Oil and natural gas capital expenditures totaled **$3.118 million** for the six months ended March 31, 2020, a significant increase from **$0.062 million** in the prior year[218](index=218&type=chunk) - This increase was primarily due to **$2.5 million** spent on a new development well in the Twining area and participation in another development well in the Spirit River area[218](index=218&type=chunk) - Investments in oil and natural gas properties have been indefinitely suspended due to uncertainties created by the COVID-19 pandemic[219](index=219&type=chunk) [Oil and Natural Gas Property Acquisitions and Dispositions](index=44&type=section&id=Oil%20and%20Natural%20Gas%20Property%20Acquisitions%20and%20Dispositions) The Company disposed of its interests in Progress area properties in Canada for $0.594 million in October 2019, with proceeds credited to the full cost pool. No significant acquisitions occurred in the current period, and marketed non-core properties remain open for bid - In October 2019, Barnwell sold its interests in Progress area properties in Alberta, Canada, for **$0.594 million**, with proceeds credited to the full cost pool and no gain or loss recognized[220](index=220&type=chunk) - No significant oil and natural gas property acquisitions occurred during the six months ended March 31, 2020[224](index=224&type=chunk) - The Company engaged a broker in January 2020 to market non-core oil and natural gas properties, which remain open for bid after no significant bids were received[223](index=223&type=chunk) [NYSE American Continued Listing Standard](index=45&type=section&id=NYSE%20American%20Continued%20Listing%20Standard) The Company is not in compliance with NYSE American listing standards due to low stockholders' equity and sustained net losses. While its compliance plan was accepted, granting an extension until July 13, 2021, the COVID-19 pandemic and other macroeconomic pressures adversely affect its ability to achieve compliance, risking potential delisting - On January 13, 2020, the Company received a letter from NYSE American Staff indicating non-compliance with listing standards due to stockholders' equity of **$1.2 million** and net losses in recent fiscal years[227](index=227&type=chunk) - The Company's compliance plan was accepted on April 2, 2020, granting an extension until July 13, 2021, but COVID-19 and other macroeconomic pressures adversely affect its ability to meet the plan's goals[228](index=228&type=chunk) - Failure to regain compliance or make consistent progress could lead to delisting, resulting in adverse consequences such as lack of a trading market, reduced liquidity, and inability to obtain financing[228](index=228&type=chunk) [Item 4. Controls and Procedures](index=46&type=section&id=Item%204.%20Controls%20and%20Procedures) This section confirms the effectiveness of the Company's disclosure controls and procedures as of March 31, 2020, based on an evaluation by the CEO and CFO. It also states that there were no material changes in internal control over financial reporting during the quarter [Disclosure Controls and Procedures](index=46&type=section&id=Disclosure%20Controls%20and%20Procedures) This section confirms the effectiveness of the Company's disclosure controls and procedures, ensuring timely and accurate reporting of material information - Barnwell's Chief Executive Officer and Chief Financial Officer concluded that the Company's disclosure co

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 December 31, 2019 or [ ] Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Commission File Number 1-5103 BARNWELL INDUSTRIES, INC. (Exact name of registrant as specified in its charter) DELAWARE 72-0496921 (State or other jurisdiction of incorporation or organization) ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-K (Mark One) [X] ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended September 30, 2019 or [ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission File Number 1-5103 BARNWELL INDUSTRIES, INC. (Exact name of registrant as specified in its charter) (State or other jurisdiction of incorporation or organization) (I.R.S. Employe ...