Barnwell Industries(BRN) - 2025 Q3 - Quarterly Results

Financial Highlights and Key Developments Q3 2025 Financial Performance Overview Barnwell Industries reported a net loss from continuing operations of $1,550,000 ($0.15 per share) on revenues of $3,192,000 for the third quarter ended June 30, 2025, marking a significant increase in net loss primarily due to a substantial rise in general and administrative expenses Q3 2025 vs Q3 2024 Financial Performance | Metric | Q3 2025 | Q3 2024 | | :----------------------------------- | :---------- | :---------- | | Revenue from continuing operations | $3,192,000 | $4,506,000 | | Net loss from continuing operations | $(1,550,000) | $(1,018,000) | | Net loss per share (continuing ops) | $(0.15) | $(0.10) | - The net loss from continuing operations for Q3 2025 increased by $532,000 (52.3%) year-over-year, primarily due to a $565,000 (43%) increase in general and administrative expenses, driven by $657,000 in non-recurring fees and costs related to shareholder consent solicitation, legal actions, and a proxy contest, partially offset by $348,000 of estimated accrued insurance recoveries receivable[2][3] Operational Segment Performance The oil and natural gas operating results saw a decrease in Q3 2025 compared to the prior year, mainly due to reduced revenues, although this was partially mitigated by lower ceiling test impairment and depletion, with a foreign currency gain providing a positive impact on the net loss - Oil and natural gas operating results decreased by $299,000 for the three months ended June 30, 2025, compared to the prior year[4] - This decrease was primarily attributable to a $1,299,000 decrease in oil and natural gas revenues, partially offset by a $399,000 decrease in ceiling test impairment (from $599,000 to $200,000) and a $449,000 decrease in oil and natural gas depletion[4] - A foreign currency gain of $219,000 was recorded in Q3 2025, representing a $280,000 positive impact compared to a $61,000 loss in the prior year period, due to changes in the U.S. dollar against the Canadian dollar[5] Strategic Initiatives and Challenges Barnwell Industries has entered an agreement to sell its U.S. oil and natural gas properties, aiming to generate capital for investments and reduce its working capital deficit, while ongoing shareholder disputes continue to incur significant expenses, contributing to substantial doubt about the company's ability to continue as a going concern, prompting an active search for additional funding - The Company entered an agreement on August 8, 2025, to sell all its working interest in U.S. oil and natural gas assets for $2,300,000, with an estimated loss on sale of approximately $700,000 after expenses and taxes in the quarter ending September 30, 2025, meaning the Company no longer owns any U.S. oil and natural gas assets[6] - General and administrative expenses will continue to be affected beyond June 30, 2025, due to ongoing shareholder disputes and the rescheduling of the annual stockholders meeting to September 10, 2025, with the Company unable to estimate future costs[7] - Barnwell faces substantial doubt regarding its ability to continue as a going concern due to recent shareholder contest costs, impacts of tariffs causing reduced oil prices, and uncertainty about professional fees and oil and natural gas operating cash inflows[8] - The Company is investigating potential funding sources, including debt financing, stock issuance, and the partial or complete sale of its remaining interests in the Kukio Resort Land Development Partnerships[8] - CEO Craig D. Hopkins stated that the sale of U.S. oil and natural gas properties provides capital for well workovers and optimization in the Twining field and will assist in reducing the working capital deficit, though additional capital will be needed to develop assets at Twining and dilute fixed costs[9] Comparative Operating Results Unaudited Financial Data The unaudited comparative operating results provide a detailed breakdown of revenues, net loss, and earnings per share for both the three and nine months ended June 30, 2025, and 2024, highlighting the company's financial performance trends over these periods Comparative Unaudited Financial Data | Metric | Three months ended June 30, 2025 | Three months ended June 30, 2024 | Nine months ended June 30, 2025 | Nine months ended June 30, 2024 | | :------------------------------------------------- | :------------------------------- | :------------------------------- | :------------------------------ | :------------------------------ | | Revenues | $3,192,000 | $4,506,000 | $10,695,000 | $14,346,000 | | Net loss from continuing operations attributable to Barnwell Industries, Inc. | $(1,550,000) | $(1,018,000) | $(4,686,000) | $(2,674,000) | | Net (loss) earnings from discontinued operations | - | $(228,000) | $12,000 | $(1,008,000) | | Net loss attributable to Barnwell Industries, Inc. | $(1,550,000) | $(1,246,000) | $(4,674,000) | $(3,682,000) | | Basic and diluted net loss per share (continuing ops) | $(0.15) | $(0.10) | $(0.47) | $(0.27) | | Net loss from discontinued operations per share | - | $(0.02) | - | $(0.10) | | Net loss attributable to Barnwell Industries, Inc. per share | $(0.15) | $(0.12) | $(0.47) | $(0.37) | | Weighted-average shares and equivalent shares outstanding | 10,053,534 | 10,028,090 | 10,051,390 | 10,014,609 | Additional Information Forward-Looking Statements This section provides a standard disclaimer regarding forward-looking statements, cautioning investors that such statements are based on current expectations and involve inherent risks, uncertainties, and assumptions that could cause actual results to differ materially from projections, with the company disclaiming any obligation to publicly update or revise these statements - The press release contains forward-looking statements subject to risks, uncertainties, and assumptions that could cause actual results to differ materially, and investors should not place undue reliance on these statements, with Barnwell disclaiming any obligation to publicly release updates or revisions[10] Company Contact Information This section provides essential contact details for Barnwell Industries, Inc., including its corporate address, telephone, fax, website, and direct contact information for its Chief Executive Officer and President - Company Address: 1100 Alakea Street, Suite 500, Honolulu, HI 96813. Telephone: (808) 531-8400. Fax: (808) 531-7181. Website: www.brninc.com[12](index=12&type=chunk) - Contact Person: Craig D. Hopkins, Chief Executive Officer and President. Phone: (403) 531-1560. Email: info@bocl.ca[12]