DISCONTINUED OPERATIONS

3 Months Ended

Dec. 31, 2025

Discontinued Operations and Disposal Groups [Abstract]

DISCONTINUED OPERATIONS

DISCONTINUED OPERATIONS

On March 14, 2025, the Company entered into a Stock Purchase Agreement with three unrelated individuals (collectively, the “Buyer”) whereby the Buyer acquired all of the shares of capital stock of Water Resources (the “Shares”) owned by the Company (the “Purchase Agreement”). The sale and purchase of the Shares closed (the “Closing”) simultaneously with the execution and delivery of the Purchase Agreement by each of the parties thereto on March 14, 2025. The aggregate purchase price for the Shares was $1,050,000, which was paid at Closing by the Buyer as follows: an initial aggregate cash payment of $250,000 and the delivery of a non-interest bearing promissory note with a principal amount of $800,000 (the “Promissory Note”). As of December 31, 2025, the balance of the Promissory Note was $200,000 and is presented as “Note receivable” on the Condensed Consolidated Balance Sheets ($300,000 as at September 30, 2025) with the remaining payments scheduled for $50,000 on February 15, 2026 and $150,000 on March 15, 2026. The annual interest rate on the Promissory Note increased from zero to 12% beginning August 15, 2025 and to 18% beginning December 15, 2025. The $100,000 was paid on December 15, 2025 as scheduled, as well as the $50,000 on February 13, 2026.

Water Resources drilled water wells and installed and repaired water pumping systems in Hawaii and represented our contract drilling segment. As a result of the sale, the Company has classified the related assets and liabilities and the results of its contract drilling business as discontinued operations in the condensed consolidated financial statements for all periods presented. Prior to the sale, the Company did not have any assurances that a sale of Water Resources was likely to occur. The Company recorded a loss of $193,000 on the sale of Water Resources, which was included in the results from discontinued operations for the year ended September 30, 2025. There was no impact from the sale of Water Resources on the provision for income taxes.

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

	Three months ended December 31,
	2025		2024
Revenues:
Contract drilling	$	—	$	543,000
	—		543,000
Costs and expenses:
Contract drilling operating	—		720,000
General and administrative	—		118,000
Depreciation and amortization	—		24,000
	—		862,000
Loss from discontinued operations before income taxes	—		(319,000)
Net loss from discontinued operations	$	—	$	(319,000)

There are no assets or liabilities of discontinued operations included in the Condensed Consolidated Balance Sheets.