XML 29 R18.htm IDEA: XBRL DOCUMENT v3.25.2
INCOME TAXES
 9 Months Ended
Jun. 30, 2025
Income Tax Disclosure [Abstract]  
INCOME TAXES INCOME TAXES
 
The components of loss from continuing operations before income taxes, after adjusting the loss for non-controlling interests, are as follows:
Three months ended
June 30,		Nine months ended
June 30,
 2025202420252024
United States$(1,402,000)$(666,000)$(4,075,000)$(37,000)
Canada(182,000)(331,000)(476,000)(2,450,000)
 $(1,584,000)$(997,000)$(4,551,000)$(2,487,000)

The components of the income tax (benefit) provision from continuing operations are as follows:
Three months ended
June 30,		Nine months ended
June 30,
 2025202420252024
Current$(17,000)$25,000 $186,000 $140,000 
Deferred(17,000)(4,000)(51,000)47,000 
 $(34,000)$21,000 $135,000 $187,000 

Consolidated taxes do not bear a customary relationship to pretax results due primarily to the fact that the Company is taxed separately in Canada based on Canadian source operations and in the U.S. based on consolidated operations, and essentially all deferred tax assets, net of relevant offsetting deferred tax liabilities, are not estimated to have a future benefit as tax credits or deductions. The Company operates two subsidiaries in Canada, one of which is a U.S. corporation operating as a branch in Canada that is treated as a non-resident for Canadian tax purposes and thus has operating results that cannot be offset against or combined with the other Canadian subsidiary that files as a resident for Canadian tax purposes. Income from our non-controlling interest in the Kukio Resort Land Development Partnerships is treated as non-unitary for state of Hawaii unitary filing purposes, thus unitary Hawaii losses provide limited sheltering of such non-unitary income. Income from our investment in the Oklahoma oil venture is 100% allocable to Oklahoma. As such, Barnwell receives no benefit from consolidated or unitary losses and, therefore, is subject to Oklahoma state taxes. Our operations in Texas are subject to a franchise tax assessed by the state of Texas, however no significant amounts have been incurred to date.

On July 4, 2025, the President of the United States signed into law the One Big Beautiful Bill Act. The legislation, among other things, makes permanent, extends or modifies certain provisions under the 2017 Tax Cuts and Jobs Act, including a permanent extension of 100% bonus depreciation for certain capital expenditures. Pursuant to ASC Topic 740, Income Taxes, the effects of changes in tax law are recognized in the period of enactment. As such, this legislation is not reflected in the Company’s unaudited condensed consolidated financial statements for the periods ended June 30, 2025. The Company is currently evaluating the full impact of this new legislation on its consolidated financial statements.