RELATED PARTY TRANSACTIONS

6 Months Ended

Mar. 31, 2026

Related Party Transactions [Abstract]

RELATED PARTY TRANSACTIONS

RELATED PARTY TRANSACTIONS

Kaupulehu Developments is entitled to receive payments from the sales of lots and/or residential units by KD I and KD II. KD I and KD II are part of the Kukio Resort Land Development Partnerships in which Barnwell holds indirect 19.6% and 10.8% non-controlling ownership interests, respectively, accounted for under the equity method of investment. The percentage of sales payments are part of transactions which took place in 2004 and 2006 where Kaupulehu Developments sold its leasehold interests in Increment I and Increment II to KD I's and KD II's predecessors in interest, respectively, which was prior to Barnwell’s affiliation with KD I and KD II which commenced on November 27, 2013, the

acquisition date of our ownership interest in the Kukio Resort Land Development Partnerships. Changes to the arrangement above, effective March 7, 2019, are discussed in Note 6.

Barnwell Pension Plan

Effective June 2025, the Pension Plan owned more than 5% of the Company's common shares outstanding. On July 3, 2025, the Barnwell Industries, Inc. Employees’ Pension Plan Trust filed a Schedule 13D with the Securities and Exchange Commission, reporting beneficial ownership of 520,350 shares of Barnwell common stock representing more than 5% of the Company’s common shares outstanding. As of September 30, 2025, the Pension Plan held 666,077 shares of Barnwell common stock. As of March 31, 2026, the Pension Plan held 676,296 shares of Barnwell common stock. All the shares purchased by the Pension Plan were made on the open market through a brokerage account.

Account payable - related parties

During fiscal year 2025, a Special Committee of the Board of Directors of the Company engaged Skadden, Arps, Slate, Meagher & Flom LLP (“Skadden”) to provide legal services related to various governance matters, including proxy and consent solicitations and related litigation involving a significant stockholder. A partner of Skadden who advised the Company is the brother of a member of the Company’s Board of Directors.

The Company incurred $871,000 of legal fees with Skadden during fiscal year 2025. These amounts were fully recognized as legal expenses in the Company’s consolidated statements of operations in the periods in which the services were rendered. The identified matter relates solely to the classification of the related payable on the balance sheet and the omission of related‑party disclosure in previously issued financial statements.

During the quarter ended March 31, 2026, the Company corrected the classification of the related payable to accounts payable - related parties and included the required related‑party disclosures. This correction had no impact on the Company’s consolidated statements of operations, cash flows, or previously reported net income for any period presented.

At March 31, 2026, the Company had $92,000 of accounts payable due to Skadden, which is classified as "Accounts payable - related party" in the accompanying Condensed Consolidated Balance Sheets ($246,000 at September 30, 2025).