DISCONTINUED OPERATIONS (Tables)

6 Months Ended

Mar. 31, 2025

Discontinued Operations and Disposal Groups [Abstract]

Schedules of discontinued operations presented in the financial statements

The following table presents the financial results from discontinued operations presented in the Condensed Consolidated Statements of Operations.

	Three months ended March 31,				Six months ended March 31,
	2025		2024		2025		2024
Revenues:
Contract drilling	$	613,000	$	1,070,000	$	1,156,000	$	2,063,000
Other	—		26,000		—		26,000
	613,000		1,096,000		1,156,000		2,089,000
Costs and expenses:
Contract drilling operating	519,000		1,387,000		1,239,000		2,556,000
General and administrative	91,000		125,000		209,000		209,000
Depreciation and amortization	16,000		50,000		40,000		102,000
Interest expense	1,000		—		1,000		2,000
Gain on sale of assets (1)	(538,000)		—		(538,000)		—
	89,000		1,562,000		951,000		2,869,000
Earnings (loss) from discontinued operations before income taxes	524,000		(466,000)		205,000		(780,000)
Loss on sale of discontinued operations	(193,000)		—		(193,000)		—
Income tax provision	—		—		—		—
Net earnings (loss) from discontinued operations	$	331,000	$	(466,000)	$	12,000	$	(780,000)

________________________

(1)          In February 2025, the Company completed the sale of a contract drilling segment drilling rig and related ancillary equipment to an independent third party for proceeds of $538,000, net of related costs. The drilling rig and related ancillary equipment were fully depreciated and had a net book value of zero and as a result of the sale, the Company recognized a $538,000 gain during the three and six months ended March 31, 2025 which was recorded in discontinued operations.

The following table presents the carrying amounts of the assets and liabilities of discontinued operations on the Condensed Consolidated Balance Sheets.

	March 31, 2025		September 30, 2024
ASSETS
Current assets:
Cash and cash equivalents	$	—	$	220,000
Accounts and other receivables, net of allowance for credit losses of:    $0 at March 31, 2025; $234,000 at September 30, 2024	—		580,000
Assets held for sale	—		69,000
Other current assets	—		666,000
Total current assets of discontinued operations	$	—	$	1,535,000
Non-current assets:
Property and equipment:
Drilling rigs and other property and equipment	$	—	$	3,170,000
Accumulated depreciation, impairment, and amortization	—		(2,888,000)
Total non-current assets of discontinued operations	$	—	$	282,000
LIABILITIES
Current liabilities:
Accounts payable	$	—	$	37,000
Accrued compensation	—		124,000
Accrued operating and other expenses	—		369,000
Total current liabilities of discontinued operations	$	—	$	530,000