INCOME TAXES (Tables)

12 Months Ended

Sep. 30, 2025

Components of income (loss) before income taxes, after adjusting the income (loss) for non-controlling interests

The components of loss from continuing operations before income taxes, after adjusting the loss for non-controlling interests, are as follows:


	Year ended September 30,
	2025		2024
United States	$	(5,980,000)	$	(1,360,000)
Canada	(1,064,000)		(2,532,000)
	$	(7,044,000)	$	(3,892,000)

Schedule of components of the income tax provision (benefit)

The components of the income tax provision related to the above losses are as follows:


	Year ended September 30,
	2025		2024
Current provision:




United States – State
Before operating loss carryforwards	$	82,000	$	23,000
Benefit of operating loss carryforwards	—		—
After operating loss carryforwards	82,000		23,000
Canadian
Before operating loss carryforwards	71,000		148,000
Benefit of operating loss carryforwards	—		—
After operating loss carryforwards	71,000		148,000
Total current	153,000		171,000
Deferred (benefit) provision:

United States – State	(82,000)		42,000

Total deferred	(82,000)		42,000
	$	71,000	$	213,000

Summary of reconciliation between the reported income tax expense (benefit) and the amount computed by multiplying the earnings (loss) by the U.S. federal tax rate

A reconciliation between the reported income tax expense and the amount computed by multiplying the loss attributable to Barnwell before income taxes by the U.S. federal tax rate of 21% is as follows:


	Year ended September 30,
	2025		2024
Tax benefit computed by applying statutory rate	$	(1,477,000)	$	(1,124,000)

Increase in the valuation allowance	1,426,000		1,383,000

Additional effect of the foreign tax provision on the total tax provision	(28,000)		(129,000)
U.S. state income tax provision (benefit), net of federal effect	(16,000)		70,000
U.S. state provision to tax return adjustments	(2,000)		(12,000)

Other	168,000		25,000
	$	71,000	$	213,000

Schedule of tax effects of temporary differences that give rise to significant portions of the deferred tax assets and liabilities

The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities are as follows:


	September 30,
	2025		2024
Deferred income tax assets:
Foreign tax credit carryover under U.S. tax law	$	—	$	916,000

U.S. federal net operating loss carryover	9,463,000		10,382,000
U.S. state unitary net operating loss carryovers	484,000		1,334,000
Canadian net operating loss carryovers	1,490,000		1,331,000
Tax basis of investment in land in excess of book basis under U.S. tax law	11,000		11,000
Tax basis of investment in subsidiary in excess of book basis under U.S. tax law	376,000		—
Property and equipment accumulated book depreciation and depletion in excess of tax under Canadian tax law	123,000		—
Property and equipment accumulated book depreciation and depletion in excess of tax under U.S. tax law	661,000		548,000
Asset retirement obligation accrued for books but not for tax under U.S. tax law	835,000		907,000
Asset retirement obligation accrued for books but not for tax under Canadian tax law	1,941,000		2,141,000
Other liabilities accrued for books but not for tax under U.S. tax law	523,000		669,000
Foreign currency loss under U.S. tax law	76,000		68,000
Foreign currency loss under Canadian tax law	36,000		79,000
Other	195,000		168,000
Total gross deferred income tax assets	16,214,000		18,554,000
Less valuation allowance	(12,391,000)		(13,896,000)
Net deferred income tax assets	3,823,000		4,658,000
Deferred income tax liabilities:
Property and equipment accumulated tax depreciation and depletion in excess of book under Canadian tax law	—		(117,000)
Book basis of investment in land development partnerships in excess of tax basis under U.S. tax law	(64,000)		(282,000)
Book basis of investment in land development partnerships in excess of tax basis under U.S. state non-unitary tax law	(19,000)		(86,000)
U.S. oil and gas property and equipment accumulated tax depreciation and depletion in excess of book under U.S. tax law	—		(698,000)
U.S. oil and gas property and equipment accumulated tax depreciation and depletion in excess of book under U.S. state tax law	—		(16,000)
U.S. tax law impact of foreign branch deferred tax asset under Canadian tax law	(2,374,000)		(2,215,000)
Asset for retirement benefits	(1,245,000)		(1,029,000)
Other	(139,000)		(315,000)
Total deferred income tax liabilities	(3,841,000)		(4,758,000)
Net deferred income tax liability	$	(18,000)	$	(100,000)

Reported as:
Deferred income tax assets	$	—	$	—
Deferred income tax liabilities	(18,000)		(100,000)
Net deferred income tax liability	$	(18,000)	$	(100,000)

Schedule of unrecognized tax benefits

There were no changes in unrecognized tax benefits during the years ended September 30, 2025 or 2024.


	Year ended September 30,
	2025		2024
Balance at beginning of year	$	62,000	$	62,000
Effect of tax positions taken in prior years	—		—
Accrued interest related to tax positions taken	—		—
Balance at end of year	$	62,000	$	62,000

Summary of tax years, by jurisdiction, that remain subject to examination by taxing authorities

Included below is a summary of the tax years, by jurisdiction, that remain subject to examination by taxing authorities at September 30, 2025:


Jurisdiction			Fiscal Years Open
U.S. federal			2019 – 2024
Various U.S. states			2022 – 2024
Canada federal			2017 – 2024
Various Canadian provinces			2017 – 2024