10-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549

Form 10-K

[ X ]  ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934

For the fiscal year ended September 30, 2015

[  ]  TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to ____

Commission file number 1-9030

ALTEX INDUSTRIES, INC.

(Exact name of registrant as specified in its charter)

Delaware	84-0989164
(State or other jurisdiction of  incorporation or organization)	(I.R.S. Employer Identification No.)

PO Box 1057 Breckenridge CO 80424

(Address of principal executive offices) (Zip Code)

Registrant's telephone number, including area code (303) 265-9312

Securities registered pursuant to Section 12(b) of the Act: None

Securities registered pursuant to Section 12(g) of the Act: Common Stock, par value $0.01 per share

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act Yes [  ] No [X]

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or 15(d) of the Act. Yes [  ] No [X]

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes [X]  No [  ]

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes [X] No [  ]

Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K (§229.405 of this chapter) is not contained herein, and will not be contained, to the best of registrant's knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this form 10-K. [X]

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. Large accelerated filer [  ] Accelerated Filer [  ] Non-accelerated filer [  ] Smaller Reporting Company  [X]

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act). Yes [  ]  No [X]

Aggregate market value of the voting and non-voting common equity held by non-affiliates computed by reference to the price at which the common equity was last sold, or the average bid and asked price of such common equity, as of March 31, 2015: $487,000

Number of shares outstanding of registrant's common stock as of November 27, 2015: 12,923,232

"Safe Harbor" Statement under the United States

Private Securities Litigation Reform Act of 1995

Statements that are not historical facts contained in this Form 10-K are forward-looking statements that involve risks and uncertainties that could cause actual results to differ from projected results. Factors that could cause actual results to differ materially include, among others: general economic conditions; movements in interest rates; the market price of oil and natural gas; the risks associated with exploration and production; the Company's ability, or the ability of its operating subsidiary, Altex Oil Corporation ("AOC"), to find, acquire, market, develop, and produce new properties; operating hazards attendant to the oil and natural gas business; uncertainties in the estimation of proved reserves and in the projection of future rates of production and timing of development expenditures; the strength and financial resources of the Company's competitors; the Company's ability and AOC's ability to find and retain skilled personnel; climatic conditions; availability and cost of material and equipment; delays in anticipated start-up dates; environmental risks; the results of financing efforts; and other uncertainties detailed elsewhere herein.

PART I

Item 1.Business.

Altex Industries, Inc. (or the "Registrant" or the "Company," each of which terms, when used herein, refer to Altex Industries, Inc. and/or its subsidiary) is a holding company with one full-time employee that was incorporated in Delaware in 1985. Through its operating subsidiary, AOC, the Company currently owns interests, including working interests, in productive onshore oil and gas properties, has bought and sold producing oil and gas properties, and, to a lesser extent, has participated in the drilling of exploratory and development wells, and in recompletions of existing wells.

All of AOC's interests are in properties operated by others. An interest owner in a property not operated by that interest owner must rely on information regarding the property provided by the operator, even though there can be no assurance that such information is complete, accurate, or current. In addition, an owner of a working interest in a property is potentially responsible for 100% of all liabilities associated with that property, regardless of the size of the working interest actually owned.

The operators of producing properties in which AOC has an interest sell produced oil and gas to refiners, pipeline operators, and processing plants. If a refinery, pipeline, or processing plant that purchases such production were taken out of service, the operator could be forced to halt the production that is purchased by such refinery, pipeline, or plant.

Although many entities produce oil and gas, competitive factors play a material role in AOC's production operations only to the extent that such factors affect demand for and prices of oil and gas and demand for, supply of, and prices of oilfield services. The sale of oil and gas is regulated by Federal, state, and local agencies, and AOC is also subject to Federal, state, and local laws and regulations relating to the environment. These laws and regulations generally provide for control of pollutants released into the environment and require responsible parties to undertake remediation. AOC regularly assesses its exposure to environmental liability and to reclamation, restoration, and dismantlement expense ("RR&D"), which activities are covered by Federal, state, and local regulation. AOC does not believe that it currently has any material exposure to environmental liability or to RR&D, net of salvage value, although this cannot be assured. (See Management's Discussion and Analysis below.)

1

Item 1A. Risk Factors.

Not applicable.

Item 1B. Unresolved Staff Comments.

Not applicable.

Item 2.Properties.

The Company's estimated reserves at September 30, 2015, are 4,200 barrels of proved, developed oil reserves associated with the Company's 4.4% override in the Glo Field in Campbell County, Wyoming. The reserve estimate is prepared by the Company's registered profession petroleum engineer; management supplies the engineer with ownership and revenue data and reviews the reserve estimate for reasonableness. The Company has not reported to, or filed with, any other Federal authority or agency any estimates of total, proved net oil or gas reserves since the beginning of the last fiscal year. At November 27, 2015, the Company owned working interests in 2 gross (0.22 net) productive oil wells (which produce associated natural gas), no wells producing only natural gas, and 203 gross (13 net) developed acres. At November 27, 2015, the Company did not own a working interest in any undeveloped acreage, and, to the best knowledge of the Company, none of the wells in which the Company owns an interest is a multiple completion. However, certain wells in which the Company owns an interest do produce from multiple zones. The Company did not participate in the drilling of any wells during the year ended the year ended September 30, 2013 ("FY13"), the year ended September 30, 2014 ("FY14"), or the year ended September 30, 2015 ("FY15"). At November 27, 2015, the Company was not engaged in any oil and gas operations of material importance. All of the Company's production is located in Utah and Wyoming. For additional information, see Note 7 of Notes to Consolidated Financial Statements below.

Production

	Net Production				Average Price
Fiscal Year	Oil (Bbls)		Gas (Mcf)		Oil (Bbls)		Gas (Mcf)		Average Production Cost Per Equivalent Barrel ("BOE")
2015		1,000		1,000	$	42.88	$	2.12	$	0.86
2014		1,000		2,000		84.60		4.20		2.25
2013		1,000		1,000		69.73		3.77		2.76

Item 3.Legal Proceedings.

None.

Item 4.Mine Safety Disclosures.

Not applicable.

2

PART II

Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities.

The Company's common stock is traded on the OTC Bulletin Board under the symbol "ALTX". The high and low prices for the Company's common stock for each quarter in the last two fiscal years are listed in the table below.

		FY15				FY14
Quarter		High Price		Low Price		High Price		Low Price
	1	$	0.10	$	0.08	$	0.13	$	0.08
	2		0.09		0.08		0.11		0.08
	3		0.09		0.08		0.11		0.09
	4		0.08		0.06		0.14		0.09

At November 27, 2015, there were approximately 3,400 holders of record of the Company's common stock, excluding entities whose stock is held by clearing agencies. The Company has not paid a dividend during the last two fiscal years. The Company has no publicly announced plan or program for the purchase of shares. The Company has no compensation plans (including individual compensation arrangements) under which equity securities of the registrant are authorized for issuance.

Issuer Purchases of Equity Securities

Period	(a) Total number  of shares  (or units) purchased		(b) Average  price paid per share  (or unit)		(c) Total  number of  shares  (or units)  purchased as part of  publicly announced plans or  programs		(d) Maximum number  (or approximate dollar value) of shares  (or units)  that may  yet be  purchased under the  plans or programs
July 1, 2015 through July 31, 2015		--		--		--		--
August 1, 2015, through August 31, 2015		--		--		--		--
September 1, 2015 through September 30, 2015		52,089	$	0.08		--		--
Total		52,089	$	0.08		--		--

The Company has no publicly announced plan or program for the purchase of shares.

Item 6. Selected Financial Data.

Not applicable.

3

Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations

Financial Condition

In FY15 the Company used $90,000 cash in operating activities and $4,000 cash to acquire 52,089 shares of its common stock. In FY14 the Company used $57,000 cash in operating activities and $29,000 cash to ac-quire 254,567 shares of its common stock. Consequently, cash balances decreased $94,000 in FY15 and $86,000 in FY14. At September 30, 2015, other accrued expenses include $802,000 in salary payable to the Company's president, pursuant to his employment agreement, that the president has elected to defer, as well as $38,000 in related accrued payroll tax. At September 30, 2014, other accrued expenses include $586,000 in salary payable to the Company's president, pursuant to his employment agreement, that the president has elected to defer, as well as $27,000 in related accrued payroll tax.

The Company is likely to experience negative cash flow from operations unless and until the Company invests in interests in producing oil and gas wells or in another venture that produces sufficient cash flow from operations. With the exception of capital expenditures related to production acquisitions or drilling or recompletion activities or an investment in another venture that produces cash flow from operations, none of which are currently planned, the cash flows that could result from such acquisitions, activities, or investments, and the possibility of a material change in the current level of interest rates or of oil and gas prices, the Company knows of no trends or demands, commitments, events or uncertainties that will result in or that are reasonably likely to result in the Company's liquidity increasing or decreasing in any material way. However, during FY15, the Company expended approximately $10,000 to develop and test market a new venture, which has produced no revenue and the success of which cannot be assured. Except for cash generated by the operation of the Company's producing oil and gas properties, asset sales, and interest income, the Company has no internal or external sources of liquidity other than its working capital. At November 27, 2015, the Company had no material commitments for capital expenditures.

The Company regularly assesses its exposure to both environmental liability and RR&D. The Company does not believe that it currently has any material exposure to environmental liability or to RR&D, net of salvage value, although this cannot be assured.

Liquidity

Operating Activities. In FY15 and FY14 net cash used in operating activities was $90,000 and $57,000, respectively.

Financing Activities. In FY15 the Company expended $4,000 to acquire 52,089 shares of its common stock. In FY14 the Company expended $29,000 to acquire 254,567 shares of its common stock.

Results of Operations

Oil and gas sales declined from $93,000 in FY14 to $45,000 in FY15 principally because of the significant decline in world oil prices. During FY15 the Company recognized other income of $18,000 in connection with a lease termination payment made by the Company's former landlord to the Company as an inducement to terminate its lease. Included in general and administrative expense in FY15 is $10,000 associated with developing and test marketing a new venture.

At the current levels of net oil and gas production, cash balances, interest rates, and oil and gas prices, the Company's revenue is unlikely to exceed its expenses. Unless and until the Company invests a substantial portion of its cash balances in interests in producing oil and gas wells or in one or more other ventures that produce revenue and net income, the Company is likely to experience net losses. With the exception of unanticipated RR&D, unanticipated environmental expense, and possible changes in interest rates and oil and gas prices, the Company is not aware of any other trends, events, or uncertainties that have had or that are reasonably expected to have a material impact on net sales or revenues or income from continuing operations.

4

Item 7A. Quantitative and Qualitative Disclosures About Market Risk.

Not applicable.

Item 8.Financial Statements and Supplementary Data.

The consolidated financial statements follow the signature page.

Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure.

None.

Item 9A. Controls and Procedures

The Company maintains disclosure controls and procedures that are designed to ensure that information required to be disclosed in the Company's Exchange Act reports is recorded, processed, summarized, and reported within the time periods specified in the SEC's rules and forms, and that such information is accumulated and communicated to the Company's management, including its Principal Executive Officer and Principal Financial Officer as appropriate, to allow timely decisions regarding required disclosure. Management necessarily applied its judgment in assessing the costs and benefits of such controls and procedures which, by their nature, can provide only reasonable assurance regarding management's control objectives.

As of the end of the period covered by the report, the Company carried out an evaluation, under the supervision and with the participation of the Company's management, including the Company's Principal Executive Officer and Principal Financial Officer, of the effectiveness of the design and operation of the Company's disclosure controls and procedures pursuant to Exchange Act Rule 13a‑14. Based upon the foregoing, the Company's Principal Executive Officer and Principal Financial Officer concluded that the Company's disclosure controls and procedures are effective in timely alerting them to material information relating to the Company (including its consolidated subsidiary) required to be included in the Company's Exchange Act reports. There have been no significant changes in the Company's internal controls or in other factors which could significantly affect internal controls subsequent to the date the Company carried out its evaluation.

Item 9b.  Other Information

None.

PART III

Item 10.  Directors, Executive Officers, Promoters and Corporate Governance.

Mr. Steven H. Cardin, 64, an economist, formerly with The Conference Board and the consulting firm, National Economics Research Associates, has been Chairman and CEO of the Company for over five years, and a Director since 1984. Mr. Jeffrey S. Chernow, 64, a lawyer, formerly Director of Enforcement in the Division of Securities, State of Maryland, Office of the Attorney General, has been in private practice in Maryland for over five years, and a Director since 1989. Mr. Stephen F. Fante, 59, a CPA, was Chairman and CEO of IMS, which provided computerized accounting systems to the oil and gas industry and was a reseller of microcomputer products to the Fortune 1000, and was Chairman and CEO of Seca Graphics, Inc., which provided design and mapping services and software to the cable television and telecommunications industries. Mr. Fante has been a private investor for the last five years and currently owns and operates CB Paws, which retails high-end accessories for dogs and cats. Mr. Fante has been a Director since 1989.

5

The Board of Directors has a separately-designated standing Audit Committee which is comprised of Messrs. Fante and Chernow. The Board of Directors has determined that the Company has at least one Audit Committee Financial Expert serving on its Audit Committee: Mr. Fante is an Audit Committee Financial Expert, and he is independent, as that term is defined by NASDAQ.

Messrs. Chernow's, Cardin's, and Fante's terms as Directors continue until their successors are duly elected and qualified. The Company has adopted a code of ethics that applies to its principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions.

Item 11.  Executive Compensation.

The following table sets forth the compensation earned by the Company's only executive officer during the last two fiscal years.

Summary Compensation Table

Name and Principal Position	Year	Salary ($)		Total ($)
Steven H. Cardin, CEO	2015		219,000		219,000
Steven H. Cardin, CEO	2014		212,000		212,000

Effective October 1, 2011, the Company renewed its Employment Agreement with Mr. Cardin. The Agreement has an initial term of five years and provides that Mr. Cardin is to receive an annual base salary of $200,000, escalating at no less than 3% per annum, and an annual bonus of no less than 20% of the Company's earnings before tax, payable, at Mr. Cardin's election, in either cash or common stock of the Company at then fair market value.

The Employment Agreement also provides that, in the event the Company terminates Mr. Cardin's employment by reason of his permanent disability, the Company shall (1) pay Mr. Cardin a total sum, payable in 24 equal monthly installments, equal to 50% of the base salary to which he would have been entitled had he performed his duties for the Company for a period of two years after his termination, less the amount of any disability insurance benefits he receives under policies maintained by the Company for his benefit, and (2) continue to provide Mr. Cardin with all fringe benefits provided to him at the time of his permanent disability for a period of two years following such permanent disability.

The Employment Agreement also provides that, in the event the Company terminates Mr. Cardin's employment in breach of the agreement, or in the event that Mr. Cardin terminates his employment because his circumstances of employment shall have changed subsequent to a change in control, then the Company shall pay Mr. Cardin a lump sum payment equal to the sum of (1) twice Mr. Cardin's base salary during the 12-month period immediately preceding the termination of his employment, (2) the greater of (a) twice any annual bonus paid to or accrued with respect to Mr. Cardin by the Company during the fiscal year immediately preceding the fiscal year in which his employment shall have been terminated or (b) three times his base salary during the 12-month period immediately preceding the termination of his employment, and (3) any other compensation owed to Mr. Cardin at the time of his termination. The agreement also provides that the Company will indemnify Mr. Cardin against any special tax that may be imposed on him as a result of any such termination payment made by the Company pursuant to the agreement.

6

Under the Employment Agreement, a change in control is deemed to occur (1) if there is a change of one-third of the Board of Directors under certain conditions, (2) if there is a sale of all or substantially all of the Company's assets, (3) upon certain mergers or consolidations, (4) under certain circumstances if another person (or persons) acquires 20% or more of the outstanding voting shares of the Company, or (5) if any person except Mr. Cardin shall own or control half of such outstanding voting shares.

Director Compensation

Name	Fees Earned or Paid  in Cash ($)		Total ($)
Jeffrey S. Chernow		12,000		12,000
Stephen F. Fante		12,000		12,000

Each Director who is not also an officer of the Company receives $1,000 per month for service as a Director. No additional fees are paid for service on Committees of the Board or for attendance at Board or Committee Meetings.

Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

The following table sets forth information concerning each person who, as of November 27, 2015, is known to the Company to be the beneficial owner of more than five percent of the Company's common stock and information regarding common stock of the Company beneficially owned, as of November 27, 2015, by all Directors and executive officers and by all Directors and executive officers as a group.

Name and Address of Beneficial Owner	Shares of Common Stock Beneficially  Owned		Percent of Class
Steven H. Cardin (Director and Executive Officer) PO Box 1057 Breckenridge CO 80424		7,233,866		55.98	%
All Directors and Executive Officers as a Group (1 Person)		7,233,866		55.98	%

Item 13. Certain Relationships and Related Transactions, and Director Independence.

Messrs. Fante and Chernow are both independent under the NASDAQ independence standards.

Item 14. Principal Accountant Fees and Services

Audit Fees. Billed for FY15: $6,400. Billed for FY14: $6,500.

Audit-Related Fees. None.

Tax Fees. None.

All Other Fees. None.

The Company does not engage an accountant to render audit or non‑audit services unless the engagement is explicitly pre-approved by the Company's Audit Committee. During FY15 and FY14 no Audit-Related Fees, Tax Fees, or Other Fees were billed by the Company's principal accountant.

7

PART IV

Item 15.  Exhibits, Financial Statement Schedules

3(i)	Articles of Incorporation - Incorporated herein by reference to Exhibit B to August 20, 1985 Proxy Statement
3(ii)	Bylaws - Incorporated herein by reference to Exhibit C to August 20, 1985 Proxy Statement
14	Code of Ethics - Incorporated herein by reference to Form 10-K for fiscal year ended September 30, 2003
21	List of subsidiaries - Incorporated herein by reference to Form 10-K for fiscal year ended September 30, 1997
31.	Rule 13a-14(a)/15d-14(a) Certifications
32.*	Section 1350 Certifications
101.xml*	XBRL Instance Document
101.xsd*	XBRL Taxonomy Extension Schema Document
101.cal*	XBRL Taxonomy Extension Calculation Linkbase Document
101.def*	XBRL Taxonomy Extension Definition Linkbase Document
101.lab*	XBRL Taxonomy Extension Label Linkbase Document
101.pre*	XBRL Taxonomy Extension Presentation Linkbase Document
___________________________
* Furnished. Not Filed. Not incorporated by reference. Not subject to liability.

8

SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

ALTEX INDUSTRIES, INC.

/s/ STEVEN H. CARDIN

By: Steven H. Cardin, CEO

Date: November 27, 2015

Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

/s/ STEVEN H. CARDIN

By: Steven H. Cardin, Director, Principal Executive Officer, Princi-pal Financial Officer, and Principal Accounting Officer

Date: November 27, 2015

/s/ STEPHEN F. FANTE

By: Stephen F. Fante, Director

Date: November 27, 2015

9

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Board of Directors of

Altex Industries, Inc.

Breckenridge, Colorado

We have audited the accompanying consolidated balance sheet of Altex Industries, Inc. and its subsidiaries (collectively, "the Company") as of September 30, 2015 and 2014 and the related consolidated statement of operations, stockholders' equity and cash flows for each of the years then ended. These financial statements are the responsibility of the company's management. Our responsibility is to express an opinion on these financial statements based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform an audit to obtain reasonable assurance whether the financial statements are free of material misstatement. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. Our audit included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control over financial reporting.  Accordingly, we express no such opinion. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Altex Industries, Inc. and its subsidiaries as of September 30, 2015 and 2014 and the results of their operations and their cash flows for the periods then ended in conformity with accounting principles generally accepted in the United States of America.

/s/ MaloneBailey, LLP

www.malonebailey.com

Houston, Texas

November 27, 2015

10

ALTEX INDUSTRIES, INC. AND SUBSIDIARY

Consolidated Balance Sheet

	September 30
	2015			2014
Assets
Current assets
Cash and cash equivalents	$	2,605,000		$	2,699,000
Accounts receivable		7,000			9,000
Other		16,000			16,000
Total current assets		2,628,000			2,724,000
Property and equipment, at cost
Proved oil and gas properties (successful efforts method) (Notes 6 and 7)		334,000			347,000
Other		17,000			17,000
Total property and equipment, at cost		351,000			364,000
Less accumulated depreciation, depletion, and amortization		(202,000	)		(195,000	)
Net property and equipment		149,000			169,000
Other assets		1,000			2,000
Total assets	$	2,778,000		$	2,895,000
Liabilities and Stockholders' Equity
Current liabilities
Accounts payable	$	18,000		$	7,000
Other accrued expenses		844,000			620,000
Total current liabilities		862,000			627,000
Commitments and Contingencies (Notes 3, 5 and 6)		-			-
Stockholders' equity
Preferred stock, $.01 par value. Authorized 5,000,000 shares, none issued		-			-
Common stock, $.01 par value. Authorized 50,000,000 shares; issued and outstanding, 12,923,232 and 12,975,321, respectively		129,000			130,000
Additional paid-in capital		13,851,000			13,854,000
Accumulated deficit		(12,064,000	)		(11,716,000	)
Total stockholders' equity		1,916,000			2,268,000
Total stockholders' equity and liabilities	$	2,778,000		$	2,895,000

See accompanying notes to consolidated financial statements.

11

ALTEX INDUSTRIES, INC. AND SUBSIDIARY

Consolidated Statement of Operations

Years ended September 30

	2015			2014
Revenue
Oil and gas sales	$	45,000		$	93,000
Other		3,000			7,000
		48,000			100,000
Costs and expenses
Lease operating		1,000			3,000
Production taxes		4,000			9,000
General and administrative		406,000			391,000
Depreciation, depletion, and amortization		20,000			19,000
		431,000			422,000
Other income
Interest income		17,000			17,000
Other income		18,000			-
Net loss	$	(348,000	)	$	(305,000	)
Basic and diluted loss per share	$	(0.03	)	$	(0.02	)
Basic and diluted weighted average shares outstanding		12,971,141			13,221,519

See accompanying notes to consolidated financial statements.

12

ALTEX INDUSTRIES, INC. AND SUBSIDIARY

Consolidated Statement of Stockholders' Equity

Years ended September 30

	Common Stock						Additional paid-in capital			Accumulated deficit			Treasury stock			Total  stockholders'  equity
	Shares			Amount
Balance at September 30, 2013		13,229,888		$	132,000			13,881,000			(11,411,000	)				$	2,602,000
Net loss											(305,000	)					(305,000	)
Acquisition of treasury stock, 254,567 shares at $0.12 per share														(29,000	)		(29,000	)
Retirement of treasury stock		(254,567	)		(2,000	)		(27,000	)					29,000			-
Balance at September 30, 2014		12,975,321			130,000			13,854,000			(11,716,000	)		-			2,268,000
Net loss											(348,000	)					(348,000	)
Acquisition of treasury stock, 52,089 shares at $0.08 per share														(4,000	)		(4,000	)
Retirement of treasury stock		(52,089	)		(1,000	)		(3,000	)					4,000			-
Balance at September 30, 2015		12,923,232		$	129,000			13,851,000			(12,064,000	)		-		$	1,916,000

See accompanying notes to consolidated financial statements.

13

ALTEX INDUSTRIES, INC. AND SUBSIDIARY

Consolidated Statement of Cash Flows

Years ended September 30

	2015			2014
Cash flows used in operating activities
Net loss	$	(348,000	)	$	(305,000	)
Adjustments to reconcile net loss to net cash used in operating activities
Depreciation, depletion, and amortization		20,000			19,000
Decrease in accounts receivable		2,000			4,000
Increase in other current assets		-			(1,000	)
Decrease in other assets		1,000			-
Increase in accounts payable		11,000			5,000
Increase in other accrued expenses		224,000			221,000
Net cash used in operating activities		(90,000	)		(57,000	)
Cash flows from investing activities		-			-
Cash flows from financing activities
Acquisition of treasury stock		(4,000	)		(29,000	)
Net cash from financing activities		(4,000	)		(29,000	)
Net decrease in cash and cash equivalents		(94,000	)		(86,000	)
Cash and cash equivalents at beginning of year		2,699,000			2,785,000
Cash and cash equivalents at end of year	$	2,605,000		$	2,699,000
Noncash Investing and Financing Activities
Retirement of treasury stock	$	4,000		$	29,000

See accompanying notes to consolidated financial statements.

14

ALTEX INDUSTRIES, INC. AND SUBSIDIARY

Notes to Consolidated Financial Statements

September 30, 2015 and 2014

Note 1 - Nature of Operations and Summary of Significant Accounting Policies.

Nature of Operations: Altex Industries, Inc., through its wholly-owned subsidiary, jointly referred to as "the Company," owns interests, including working interests, in productive oil and gas properties located in Utah and Wyoming. The Company's revenues are generated from interest income from cash deposits and from sales of oil and gas production. The Company's operations are significantly affected by changes in interest rates and oil and gas prices.

Principles of Consolidation: The consolidated financial statements include the accounts of Altex Industries, Inc. and its wholly-owned subsidiary. All intercompany balances and transactions have been eliminated in consolidation.

Estimates: The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

Property and Equipment: The Company follows the successful efforts method of accounting for oil and gas operations, under which exploration costs, including geological and geophysical costs, annual delay rentals, and exploratory dry hole costs, are charged to expense as incurred. Costs to acquire unproved properties, to drill and to equip exploratory wells that find proved reserves, and to drill and to equip development wells are capitalized. Capitalized costs relating to proved oil and gas properties are depleted on the units‑of‑product-ion method based on estimated quantities of proved reserves and estimated RR&D (Note 6). Upon the sale or retirement of property and equipment, the cost thereof and the accumulated depreciation, depletion, and valuation allowance are removed from the accounts, and the resulting gain or loss is credited or charged to operations. Actual RR&D expense in excess of estimated RR&D expense is charged to operations.

Impairment of Long-Lived Assets: The Company assesses long-lived assets for impairment when circumstances indicate that the carrying value of such assets may not be recoverable. This review compares the asset's carrying value with management's best estimate of the asset's expected future undiscounted cash flows without interest costs. If the expected future cash flows exceed the carrying value, no impairment is recognized. If the carrying value exceeds the expected future cash flows, an impairment equal to the excess of the carrying value over the estimated fair value of the asset is recognized. No such impairment may be restored in the future. The Company's proved oil and gas properties are assessed for impairment on an individual field basis.

Cash Equivalents and Fair Values of Financial Instruments: For purposes of the statement of cash flows, the Company considers all highly liquid investments with an original maturity of three months or less to be cash equivalents. The carrying amount reported on the balance sheet for cash and cash equivalents approximates its fair value.

Income Taxes: The Company follows the asset and liability method of accounting for deferred income taxes. The asset and liability method requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of temporary differences between financial accounting and tax bases of assets and liabilities. The Company reports uncertainty in income taxes according to GAAP. There was no increase in liabilities for unrecognized tax benefits during the current year. The Company recognizes accrued interest related to unrecognized tax benefits in interest expense and penalties in general and administrative expense. There was neither interest nor penalty at September 30, 2015.

15

Earnings Per Share: Earnings per share of common stock is based upon the weighted average number of shares of common stock outstanding during the year.

Concentrations of credit risk: The Company maintains significant amounts of cash and sometimes permits cash balances in national banking institutions to exceed FDIC limits.

Revenue recognition: Substantially all of the Company's revenue is from interest income and sales of oil and gas production. Interest income is recognized when earned. Revenue from oil and gas production is recognized based on sales or delivery date.

Recent Accounting Pronouncements:

There are no recent accounting pronouncements that have a material impact on the consolidated financial statements.

Note 2 - Income Taxes. At September 30, 2015, the Company had a depletion carryforward of $860,000 and a net operating loss carryforward ("NOL") of $1,973,000, which will expire in the years 2027 through 2035.. The approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax assets at September 30, 2015, computed in accordance with the Income Tax Topic (Topic 740) of the Codification, is as follows:

Deferred Tax Assets	2015			2014
Depletion carryforward	$	301,000		$	302,000
Net operating loss carryforward		691,000			648,000
Accrued shareholder salary		281,000			205,000
Other		3,000			-
Total Net Deferred Tax Assets		1,276,000			1,155,000
Less valuation allowance		(1,276,000	)		(1,155,000	)
Net Deferred Tax Asset	$	-		$	-

A valuation allowance has been provided because of the uncertainty of future realization. Income tax expense is different from amounts computed by applying the statutory Federal income tax rate for the following reasons:

	2015			2014
Tax benefit at 35% of net earnings	$	(121,000	)		(106,000	)
State income tax, net of Federal benefit		-			-
Change in valuation allowance for net deferred tax assets		121,000			106,000
Income tax expense	$	-			-

As of September 30, 2015, the Company has no unrecognized tax benefit as a result of uncertain tax positions. As of September 30, 2015, the Company's tax years that remain subject to examination are 2012 - 2015 (Federal jurisdiction) and 2011 - 2015 (state jurisdictions).

Note 3 - Related Party Transactions. Effective October 1, 2011, the Company entered into a five‑year employment agreement with its president which provides for a base salary of $200,000 annually, plus escalations of not less than 3% annually. The agreement contains provisions providing for payments to the president in the event of his disability or termination of his employment. The agreement also provides that he will receive an annual bonus equal to no less than 20% of the Company's earnings before income tax, payable, at his election, in cash or common stock of the Company at then fair market value. At September 30, 2015, other accrued expense includes $802,000 in salary payable to the Company's president that the president has elected to defer.

In 2015 and 2014, the Company expended $4,000 and $29,000 to acquire 52,089 and 254,567 shares of common stock, respectively.  These 52,089 and $254,567 treasury shares were retired in 2015 and 2014, respectively.

16

Note 4 - Major Customers. In 2015 the Company had two customers who individually accounted for 10% or more of the Company's oil and gas sales and who, in aggregate, accounted for 86% of oil and gas sales. In 2015 the two customers individually accounted for 61% and 25% of oil and gas sales. In 2014 the Company had two customers who individually accounted for 10% or more of the Company's oil and gas sales and who, in aggregate, accounted for 78% of oil and gas sales. In 2014 the two customers individually accounted for 63% and 15% of oil and gas sales.

Note 5 - Leases. The Company rents office space under a cancellable operating lease that expires June 30, 2025. The Company may cancel upon 30 days' written notice and the payment of a termination fee of $4,000. The Company incurred rent expense of $22,000 and $13,000 in 2015 and 2014, respectively.

Note 6 - Reclamation, Restoration, and Dismantlement (RR&D). The Company accounts for its RR&D costs in accordance with ASC Topic 410 "Asset Retirement and Environmental Obligations." ASC 410 addresses obligations associated with the retirement of tangible, long lived assets and the associated asset retirement costs. This statement requires the Company to recognize a liability for the fair value of its plugging and abandonment liability (excluding salvage value) with the associated costs included as part of the Company's oil and gas properties balance. For the years ended September 30, 2015 and 2014, the plugging and abandonment liability was not material to the financial statements.

Note 7 - Supplemental Financial Data - Oil and Gas Producing Activities (Unaudited). The Company's operations are confined to the continental United States, and all of the Company's reserves are proved developed. Oil prices used are the average of the NYMEX settlement price for the spot month on the first day of each month of 2015, corrected to received price using a price differential. Income tax expense is not reflected in the tables below because of the anticipated utilization of net operating loss carryforwards and depletion carryforwards. The estimation of reserves is complex and subjective, and reserve estimates tend to fluctuate in light of new production data.

I. Capitalized Costs Relating to Oil and Gas Producing Activities

	September 30,  2015
Proved properties	$	334,000
Accumulated depreciation, depletion, amortization and valuation allowance		(185,000	)
Net capitalized cost	$	149,000

II. Estimated Quantities of Proved Oil and Gas Reserves

	Oil in Barrels			Gas in MCFs
Balance at September 30, 2013		7,600
Revisions of previous estimates		(100	)
Production		(800	)
Balance at September 30, 2014		6,700			-
Revisions of previous estimates		(1,500	)
Production		(1,000	)
Balance at September 30, 2015		4,200			-

III. Present Value of Estimated Future Net Revenue

	At September 30
	2015			2014
Estimated future revenue	$	191,000		$	503,000
Estimated future expenditures		(20,000	)		(54,000	)
Estimated future net revenue		171,000			449,000
10% annual discount of estimated future net revenue		(68,000	)		(193,000	)
Present value of estimated future net revenue	$	103,000		$	256,000

IV. Summary of Changes in Present Value of Estimated Future Net Revenue

	Year ended September 30
	2015			2014
Present value of estimated future net revenue, beginning of year	$	256,000		$	262,000
Sales, net of production costs		(40,000	)		(81,000	)
Net change in prices and cost of future production		(123,000	)		31,000
Revisions of quantity estimates		(41,000	)		4,000
Accretion of discount		26,000			26,000
Change in production rates and other		25,000			14,000
Present value of estimated future net revenue, end of year	$	103,000		$	256,000

17

EX-31.1

Exhibit 31

Rule 13a-14(a)/15d-14(a) Certifications

I, Steven H. Cardin, certify that:

1. I have reviewed this annual report on Form 10-K of Altex Industries, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) for the registrant and have:

a. Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b. Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

c. Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

a. All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

b. Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

/s/ STEVEN H. CARDIN	November 27, 2015
Steven H. Cardin	Date
Principal Executive Officer and
Principal Financial Officer

EX-32.1

Exhibit 32

Certification pursuant to 18 U.S.C. Section 1350,

as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

In connection with the Annual Report of Altex Industries, Inc. (the "Company") on Form 10-K for the period ending September 30, 2015, as filed with the Securities and Exchange Commission on the date hereof (the "Report"), I, Steven H. Cardin, Chief Executive Officer and Principal Financial Officer of the Company, certify, pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, that the Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934 and that the information contained in the Report fairly presents, in all material respects, the financial condition and result of operations of the Company.

Date: November 27, 2015		/s/ STEVEN H. CARDIN
	By:	Steven H. Cardin
		Chief Executive Officer and
		Principal Financial Officer

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Note 7 - Oil and Gas Exploration and Production Industries Disclosures: Schedule of Proved Developed and Undeveloped Oil and Gas Reserve Quantities (Details) - Oil	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2013
Net Proved Developed And Undeveloped Reserves	4,200	6,700	7,600
Proved Developed And Undeveloped Reserves, Revisions of previous estimates	(1,500)	(100)
Proved Developed And Undeveloped Reserve, Production	(1,000)	(800)

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Note 2 - Income Tax Disclosure: Schedule of Deferred Tax Assets (Details) - USD ($)	Sep. 30, 2015	Sep. 30, 2014
Details
Deferred Tax Assets - Depletion Carryforward	$ 301,000	$ 302,000
Deferred Tax Assets, Operating Loss Carryforwards	691,000	648,000
Accrued Shareholder Salary	281,000	205,000
Deferred Tax Assets, Other	3,000
Deferred Tax Assets, Net of Valuation Allowance, Current	1,276,000	1,155,000
Deferred Tax Assets, Valuation Allowance	$ (1,276,000)	$ (1,155,000)

XML

Note 1 - Nature of Operations and Summary of Significant Accounting Policies.: Recent Accounting Pronouncements (Policies)

12 Months Ended

Sep. 30, 2015

Policies

Recent Accounting Pronouncements:

Recent Accounting Pronouncements:

There are no recent accounting pronouncements that have a material impact on the consolidated financial statements.

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Note 5 - Leases (Details) - USD ($)		12 Months Ended
		Sep. 30, 2015	Sep. 30, 2014
Details
Operating Leases, Rent Expense	[1]	$ 22,000	$ 13,000

[1] The Company may cancel upon 30 days written notice and the payment of a termination fee of $4,000

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Note 2 - Income Tax Disclosure

12 Months Ended

Sep. 30, 2015

Notes

Note 2 - Income Tax Disclosure

Note 2 - Income Taxes. At September 30, 2015, the Company had a depletion carryforward of $860,000 and a net operating loss carryforward ("NOL") of $1,973,000, which will expire in the years 2027 through 2035.. The approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax assets at September 30, 2015, computed in accordance with the Income Tax Topic (Topic 740) of the Codification, is as follows:

Deferred Tax Assets		2015	2014
Depletion carryforward	$	301,000	$  302,000
Net operating loss carryforward		691,000	648,000
Accrued shareholder salary		281,000	205,000
Other		3,000	-
Total Net Deferred Tax Assets		1,276,000	1,155,000
Less valuation allowance		(1,276,000)	(1,155,000)
Net Deferred Tax Asset	$	-	$       -

A valuation allowance has been provided because of the uncertainty of future realization. Income tax expense is different from amounts computed by applying the statutory Federal income tax rate for the following reasons:

		2015	2014
Tax benefit at 35% of net earnings	$	(121,000)	(106,000)
State income tax, net of Federal benefit		-	-
Change in valuation allowance for net deferred tax assets		121,000	106,000
Income tax expense	$	-	-

As of September 30, 2015, the Company has no unrecognized tax benefit as a result of uncertain tax positions. As of September 30, 2015, the Company’s tax years that remain subject to examination are 2012 - 2015 (Federal jurisdiction) and 2011 - 2015 (state jurisdictions).

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Note 7 - Oil and Gas Exploration and Production Industries Disclosures: Schedule of Proved Developed and Undeveloped Oil and Gas Reserve Quantities (Tables)

12 Months Ended

Sep. 30, 2015

Tables/Schedules

Schedule of Proved Developed and Undeveloped Oil and Gas Reserve Quantities

	Oil in Barrels	Gas in MCFs
	Oil in Barrels	Gas in MCFs
Balance at September 30, 2013	7,600	-
Revisions of previous estimates	(100)	-
Production	(800)	-
Balance at September 30, 2014	6,700	-
Revisions of previous estimates	(1,500)	-
Production	(1,000)	-
Balance at September 30, 2015	4,200	-

XML

Note 7 - Oil and Gas Exploration and Production Industries Disclosures: Capitalized Costs Relating to Oil and Gas Producing Activities Disclosure (Tables)

12 Months Ended

Sep. 30, 2015

Tables/Schedules

Capitalized Costs Relating to Oil and Gas Producing Activities Disclosure

	September 30, 2015
Proved properties	$       334,000
Accumulated depreciation, depletion, amortization and valuation allowance	(185,000)
Net capitalized cost	$       149,000

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Note 7 - Oil and Gas Exploration and Production Industries Disclosures: Present Value of Estimated Future Net Revenue (Tables)

12 Months Ended

Sep. 30, 2015

Tables/Schedules

Present Value of Estimated Future Net Revenue

	At September 30
	2015	2014
Estimated future revenue	$     191,000	$     503,000
Estimated future expenditures	(20,000)	(54,000)
Estimated future net revenue	171,000	449,000
10% annual discount of estimated future net revenue	(68,000)	(193,000)
Present value of estimated future net revenue	$     103,000	$     256,000

XML

Note 7 - Oil and Gas Exploration and Production Industries Disclosures: Summary of Changes Present Value of Estimated Future Net Revenue (Tables)

12 Months Ended

Sep. 30, 2015

Tables/Schedules

Summary of Changes Present Value of Estimated Future Net Revenue

	Year ended September 30
	2015	2014
Present value of estimated future net revenue, beginning of year	$     256,000	$     262,000
Sales, net of production costs	(40,000)	(81,000)
Net change in prices and cost of future production	(123,000)	31,000
Revisions of quantity estimates	(41,000)	4,000
Accretion of discount	26,000	26,000
Change in production rates and other	25,000	14,000
Present value of estimated future net revenue, end of year	$     103,000	$     256,000

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Note 1 - Nature of Operations and Summary of Significant Accounting Policies.

12 Months Ended

Sep. 30, 2015

Notes

Note 1 - Nature of Operations and Summary of Significant Accounting Policies.

Note 1 - Nature of Operations and Summary of Significant Accounting Policies.

Nature of Operations: Altex Industries, Inc., through its wholly-owned subsidiary, jointly referred to as “the Company,” owns interests, including working interests, in productive oil and gas properties located in Utah and Wyoming. The Company’s revenues are generated from interest income from cash deposits and from sales of oil and gas production. The Company’s operations are significantly affected by changes in interest rates and oil and gas prices.

Principles of Consolidation: The consolidated financial statements include the accounts of Altex Industries, Inc. and its wholly-owned subsidiary. All intercompany balances and transactions have been eliminated in consolidation.

Estimates: The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

Property and Equipment: The Company follows the successful efforts method of accounting for oil and gas operations, under which exploration costs, including geological and geophysical costs, annual delay rentals, and exploratory dry hole costs, are charged to expense as incurred. Costs to acquire unproved properties, to drill and to equip exploratory wells that find proved reserves, and to drill and to equip development wells are capitalized. Capitalized costs relating to proved oil and gas properties are depleted on the units of product­ion method based on estimated quantities of proved reserves and estimated RR&D (Note 6). Upon the sale or retirement of property and equipment, the cost thereof and the accumulated depreciation, depletion, and valuation allowance are removed from the accounts, and the resulting gain or loss is credited or charged to operations. Actual RR&D expense in excess of estimated RR&D expense is charged to operations.

Impairment of Long-Lived Assets: The Company assesses long-lived assets for impairment when circumstances indicate that the carrying value of such assets may not be recoverable. This review compares the asset’s carrying value with management’s best estimate of the asset’s expected future undiscounted cash flows without interest costs. If the expected future cash flows exceed the carrying value, no impairment is recognized. If the carrying value exceeds the expected future cash flows, an impairment equal to the excess of the carrying value over the estimated fair value of the asset is recognized. No such impairment may be restored in the future. The Company’s proved oil and gas properties are assessed for impairment on an individual field basis.

Cash Equivalents and Fair Values of Financial Instruments: For purposes of the statement of cash flows, the Company considers all highly liquid investments with an original maturity of three months or less to be cash equivalents. The carrying amount reported on the balance sheet for cash and cash equivalents approximates its fair value.

Income Taxes: The Company follows the asset and liability method of accounting for deferred income taxes. The asset and liability method requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of temporary differences between financial accounting and tax bases of assets and liabilities. The Company reports uncertainty in income taxes according to GAAP. There was no increase in liabilities for unrecognized tax benefits during the current year. The Company recognizes accrued interest related to unrecognized tax benefits in interest expense and penalties in general and administrative expense. There was neither interest nor penalty at September 30, 2015.

Earnings Per Share: Earnings per share of common stock is based upon the weighted average number of shares of common stock outstanding during the year.

Concentrations of credit risk: The Company maintains significant amounts of cash and sometimes permits cash balances in national banking institutions to exceed FDIC limits.

Revenue recognition: Substantially all of the Company’s revenue is from interest income and sales of oil and gas production. Interest income is recognized when earned. Revenue from oil and gas production is recognized based on sales or delivery date.

Recent Accounting Pronouncements:

There are no recent accounting pronouncements that have a material impact on the consolidated financial statements.

XML

Note 2 - Income Tax Disclosure (Details)	12 Months Ended
	Sep. 30, 2015 USD ($)
Details
Depletion	$ 860,000
Operating Loss Carryforwards	$ 1,973,000

XML

Note 7 - Oil and Gas Exploration and Production Industries Disclosures: Present Value of Estimated Future Net Revenue (Details) - USD ($)	Sep. 30, 2015	Sep. 30, 2014
Details
Future Net Cash Flows Relating to Proved Oil and Gas Reserves, Cash Inflows	$ 191,000	$ 503,000
Future Net Cash Flows Relating to Proved Oil and Gas Reserves, Production Costs	(20,000)	(54,000)
Future Net Cash Flows Relating to Proved Oil and Gas Reserves, Net Cash Flows	171,000	449,000
Future Net Cash Flows Relating to Proved Oil and Gas Reserves, Ten Percent Annual Discount for Estimated Timing of Cash Flows	(68,000)	(193,000)
Standardized Measure of Discounted Future Net Cash Flows Relating to Proved Oil and Gas Reserves	$ 103,000	$ 256,000

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Consolidated Balance Sheets - USD ($)	Sep. 30, 2015	Sep. 30, 2014
Current assets
Cash and cash equivalents	$ 2,605,000	$ 2,699,000
Accounts receivable	7,000	9,000
Other	16,000	16,000
Total current assets	2,628,000	2,724,000
Property and equipment, at cost
Proved oil and gas properties (successful efforts method) (Notes 6 and 7)	334,000	347,000
Other	17,000	17,000
Total property and equipment, at cost	351,000	364,000
Less accumulated depreciation, depletion, and amortization	(202,000)	(195,000)
Net property and equipment	149,000	169,000
Other assets	1,000	2,000
Total assets	2,778,000	2,895,000
Current liabilities
Accounts payable	18,000	7,000
Other accrued expenses	844,000	620,000
Total current liabilities	$ 862,000	$ 627,000
Commitments and Contingencies (Notes 3, 5 and 6)
Stockholders' equity
Preferred stock, $.01 par value. Authorized 5,000,000 shares, none issued
Common stock, $.01 par value. Authorized 50,000,000 shares; issued and outstanding, 12,923,232 and 12,975,321, respectively	$ 129,000	$ 130,000
Additional paid-in capital	13,851,000	13,854,000
Accumulated deficit	(12,064,000)	(11,716,000)
Total stockholders' equity	1,916,000	2,268,000
Total stockholders' equity and liabilities	$ 2,778,000	$ 2,895,000

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Consolidated Statement of Stockholders' Equity Parenthetical - $ / shares	12 Months Ended
	Sep. 30, 2015	Sep. 30, 2014
Consolidated Statement of Stockholders' Equity Parenthetical
Treasury stock shares acquired	52,089	254,567
Treasury stock price per share	$ 0.080	$ 0.120

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Note 3 - Related Party Transactions Disclosure (Details) - USD ($)	12 Months Ended
	Sep. 30, 2015	Sep. 30, 2014
Salaries, Wages and Officers' Compensation	$ 200,000
Minimum Annual Salary Increase	3.00%
Accrued Salaries, Current	$ 802,000
Acquisition of treasury stock	$ 4,000	$ 29,000
Treasury stock shares acquired	52,089	254,567
Common Stock
Retirement of treasury stock - shares	52,089	254,567

XML

Note 1 - Nature of Operations and Summary of Significant Accounting Policies.: Earnings Per Share Policy (Policies)

12 Months Ended

Sep. 30, 2015

Policies

Earnings Per Share Policy

Earnings Per Share: Earnings per share of common stock is based upon the weighted average number of shares of common stock outstanding during the year.

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Note 4 - Major Customers (Details)	12 Months Ended
	Sep. 30, 2015	Sep. 30, 2014
Details
Concentration Risk, Additional Characteristic	the Company had two customers who individually accounted for 10% or more of the Company's oil and gas sales and who, in aggregate, accounted for 86% of oil and gas sales. In 2015 the two customers individually accounted for 61% and 25% of oil and gas sales.	the Company had two customers who individually accounted for 10% or more of the Company's oil and gas sales and who, in aggregate, accounted for 78% of oil and gas sales. In 2014 the two customers individually accounted for 63% and 15% of oil and gas sales.

XML

Note 1 - Nature of Operations and Summary of Significant Accounting Policies.: Revenue Recognition Policy (Policies)

12 Months Ended

Sep. 30, 2015

Policies

Revenue Recognition Policy

Revenue recognition: Substantially all of the Company’s revenue is from interest income and sales of oil and gas production. Interest income is recognized when earned. Revenue from oil and gas production is recognized based on sales or delivery date.

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Consolidated Statements of Cash Flows - USD ($)	12 Months Ended
	Sep. 30, 2015	Sep. 30, 2014
Cash flows used in operating activities
Net loss	$ (348,000)	$ (305,000)
Adjustments to reconcile net loss to net cash used in operating activities
Depreciation, depletion, and amortization	20,000	19,000
Decrease in accounts receivable	2,000	4,000
Increase in other current assets		(1,000)
Decrease in other assets	1,000
Increase in accounts payable	11,000	5,000
Increase in other accrued expenses	224,000	221,000
Net cash used in operating activities	$ (90,000)	$ (57,000)
Net cash flows from investing activities
Cash flows from financing activities
Acquisition of treasury stock	$ (4,000)	$ (29,000)
Net cash flows from financing activities	(4,000)	(29,000)
Net decrease in cash and cash equivalents	(94,000)	(86,000)
Cash and cash equivalents at beginning of year	2,699,000	2,785,000
Cash and cash equivalents at end of year	2,605,000	2,699,000
Noncash Investing and Financing Activities
Retirement of treasury stock	$ 4,000	$ 29,000

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Consolidated Balance Sheets Parenthetical - $ / shares	Sep. 30, 2015	Sep. 30, 2014
Consolidated Balance Sheets Parenthetical
Preferred stock par value	$ 0.01	$ 0.01
Preferred stock shares authorized	5,000,000	5,000,000
Preferred stock shares issued
Common stock par value	$ 0.01	$ 0.01
Common stock shares authorized	50,000,000	50,000,000
Common stock shares issued	12,923,232	12,975,321
Common stock shares outstanding	12,923,232	12,975,321

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Note 1 - Nature of Operations and Summary of Significant Accounting Policies.: Use of Estimates, Policy (Policies)

12 Months Ended

Sep. 30, 2015

Policies

Use of Estimates, Policy

Estimates: The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

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Document and Entity Information - USD ($)	12 Months Ended
	Sep. 30, 2015	Nov. 27, 2015	Mar. 31, 2015
Document and Entity Information:
Entity Registrant Name	ALTEX INDUSTRIES INC
Document Type	10-K
Document Period End Date	Sep. 30, 2015
Trading Symbol	altx
Amendment Flag	false
Entity Central Index Key	0000775057
Current Fiscal Year End Date	--09-30
Entity Common Stock, Shares Outstanding		12,923,232
Entity Public Float			$ 487,000
Entity Filer Category	Smaller Reporting Company
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Well-known Seasoned Issuer	No
Document Fiscal Year Focus	2015
Document Fiscal Period Focus	FY

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Note 1 - Nature of Operations and Summary of Significant Accounting Policies.: Property, Plant and Equipment, Policy (Policies)

12 Months Ended

Sep. 30, 2015

Policies

Property, Plant and Equipment, Policy

Property and Equipment: The Company follows the successful efforts method of accounting for oil and gas operations, under which exploration costs, including geological and geophysical costs, annual delay rentals, and exploratory dry hole costs, are charged to expense as incurred. Costs to acquire unproved properties, to drill and to equip exploratory wells that find proved reserves, and to drill and to equip development wells are capitalized. Capitalized costs relating to proved oil and gas properties are depleted on the units of product­ion method based on estimated quantities of proved reserves and estimated RR&D (Note 6). Upon the sale or retirement of property and equipment, the cost thereof and the accumulated depreciation, depletion, and valuation allowance are removed from the accounts, and the resulting gain or loss is credited or charged to operations. Actual RR&D expense in excess of estimated RR&D expense is charged to operations.

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Consolidated Statement of Operations - USD ($)	12 Months Ended
	Sep. 30, 2015	Sep. 30, 2014
Revenue
Oil and gas sales	$ 45,000	$ 93,000
Other	3,000	7,000
Total revenue	48,000	100,000
Costs and expenses
Lease operating	1,000	3,000
Production taxes	4,000	9,000
General and administrative	406,000	391,000
Depreciation, depletion, and amortization	20,000	19,000
Total costs and expenses	431,000	422,000
Other income
Interest income	17,000	17,000
Other income	18,000
Net loss	$ (348,000)	$ (305,000)
Basic and diluted loss per share	$ (0.03)	$ (0.02)
Basic and diluted weighted average shares outstanding	12,971,141	13,221,519

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Note 5 - Leases

12 Months Ended

Sep. 30, 2015

Notes

Note 5 - Leases

Note 5 - Leases. The Company rents office space under a cancellable operating lease that expires June 30, 2025. The Company may cancel upon 30 days’ written notice and the payment of a termination fee of $4,000. The Company incurred rent expense of $22,000 and $13,000 in 2015 and 2014, respectively.

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Note 4 - Major Customers

12 Months Ended

Sep. 30, 2015

Notes

Note 4 - Major Customers

Note 4 - Major Customers. In 2015 the Company had two customers who individually accounted for 10% or more of the Company's oil and gas sales and who, in aggregate, accounted for 86% of oil and gas sales. In 2015 the two customers individually accounted for 61% and 25% of oil and gas sales. In 2014 the Company had two customers who individually accounted for 10% or more of the Company's oil and gas sales and who, in aggregate, accounted for 78% of oil and gas sales. In 2014 the two customers individually accounted for 63% and 15% of oil and gas sales.

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Note 1 - Nature of Operations and Summary of Significant Accounting Policies.: Concentrations of Credit Risk Policy (Policies)

12 Months Ended

Sep. 30, 2015

Policies

Concentrations of Credit Risk Policy

Concentrations of credit risk: The Company maintains significant amounts of cash and sometimes permits cash balances in national banking institutions to exceed FDIC limits.

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Note 1 - Nature of Operations and Summary of Significant Accounting Policies.: Impairment or Disposal of Long-Lived Assets, Policy (Policies)

12 Months Ended

Sep. 30, 2015

Policies

Impairment or Disposal of Long-Lived Assets, Policy

Impairment of Long-Lived Assets: The Company assesses long-lived assets for impairment when circumstances indicate that the carrying value of such assets may not be recoverable. This review compares the asset’s carrying value with management’s best estimate of the asset’s expected future undiscounted cash flows without interest costs. If the expected future cash flows exceed the carrying value, no impairment is recognized. If the carrying value exceeds the expected future cash flows, an impairment equal to the excess of the carrying value over the estimated fair value of the asset is recognized. No such impairment may be restored in the future. The Company’s proved oil and gas properties are assessed for impairment on an individual field basis.

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Note 1 - Nature of Operations and Summary of Significant Accounting Policies.: Nature of Operations (Policies)

12 Months Ended

Sep. 30, 2015

Policies

Nature of Operations

Nature of Operations: Altex Industries, Inc., through its wholly-owned subsidiary, jointly referred to as “the Company,” owns interests, including working interests, in productive oil and gas properties located in Utah and Wyoming. The Company’s revenues are generated from interest income from cash deposits and from sales of oil and gas production. The Company’s operations are significantly affected by changes in interest rates and oil and gas prices.

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Note 6 - Reclamation, Restoration, and Dismantlement

12 Months Ended

Sep. 30, 2015

Notes

Note 6 - Reclamation, Restoration, and Dismantlement

Note 6 - Reclamation, Restoration, and Dismantlement (RR&D). The Company accounts for its RR&D costs in accordance with ASC Topic 410 "Asset Retirement and Environmental Obligations." ASC 410 addresses obligations associated with the retirement of tangible, long lived assets and the associated asset retirement costs. This statement requires the Company to recognize a liability for the fair value of its plugging and abandonment liability (excluding salvage value) with the associated costs included as part of the Company's oil and gas properties balance. For the years ended September 30, 2015 and 2014, the plugging and abandonment liability was not material to the financial statements.

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Note 7 - Oil and Gas Exploration and Production Industries Disclosures

12 Months Ended

Sep. 30, 2015

Notes

Note 7 - Oil and Gas Exploration and Production Industries Disclosures

Note 7 - Supplemental Financial Data - Oil and Gas Producing Activities (Unaudited). The Company's operations are confined to the continental United States, and all of the Company's reserves are proved developed. Oil prices used are the average of the NYMEX settlement price for the spot month on the first day of each month of 2015, corrected to received price using a price differential. Income tax expense is not reflected in the tables below because of the anticipated utilization of net operating loss carryforwards and depletion carryforwards. The estimation of reserves is complex and subjective, and reserve estimates tend to fluctuate in light of new production data.

I.                    Capitalized Costs Relating to Oil and Gas Producing Activities

	September 30, 2015
Proved properties	$       334,000
Accumulated depreciation, depletion, amortization and valuation allowance	(185,000)
Net capitalized cost	$       149,000

II.                  Estimated Quantities of Proved Oil and Gas Reserves

	Oil in Barrels	Gas in MCFs
	Oil in Barrels	Gas in MCFs
Balance at September 30, 2013	7,600	-
Revisions of previous estimates	(100)	-
Production	(800)	-
Balance at September 30, 2014	6,700	-
Revisions of previous estimates	(1,500)	-
Production	(1,000)	-
Balance at September 30, 2015	4,200	-

III.                Present Value of Estimated Future Net Revenue

	At September 30
	2015	2014
Estimated future revenue	$     191,000	$     503,000
Estimated future expenditures	(20,000)	(54,000)
Estimated future net revenue	171,000	449,000
10% annual discount of estimated future net revenue	(68,000)	(193,000)
Present value of estimated future net revenue	$     103,000	$     256,000

IV.                Summary of Changes in Present Value of Estimated Future Net Revenue

	Year ended September 30
	2015	2014
Present value of estimated future net revenue, beginning of year	$     256,000	$     262,000
Sales, net of production costs	(40,000)	(81,000)
Net change in prices and cost of future production	(123,000)	31,000
Revisions of quantity estimates	(41,000)	4,000
Accretion of discount	26,000	26,000
Change in production rates and other	25,000	14,000
Present value of estimated future net revenue, end of year	$     103,000	$     256,000

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Note 1 - Nature of Operations and Summary of Significant Accounting Policies.: Principles of Consolidation (Policies)

12 Months Ended

Sep. 30, 2015

Policies

Principles of Consolidation

Principles of Consolidation: The consolidated financial statements include the accounts of Altex Industries, Inc. and its wholly-owned subsidiary. All intercompany balances and transactions have been eliminated in consolidation.

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Note 2 - Income Tax Disclosure: Schedule of Effective Income Tax Rate Reconciliation (Details) - USD ($)	12 Months Ended
	Sep. 30, 2015	Sep. 30, 2014
Details
Effective Income Tax Rate Reconciliation at Federal Statutory Income Tax Rate, Amount	$ (121,000)	$ (106,000)
Effective Income Tax Rate Reconciliation, Change in Deferred Tax Assets Valuation Allowance, Amount	$ 121,000	$ 106,000

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Note 1 - Nature of Operations and Summary of Significant Accounting Policies.: Regulatory Income Taxes, Policy (Policies)

12 Months Ended

Sep. 30, 2015

Policies

Regulatory Income Taxes, Policy

Income Taxes: The Company follows the asset and liability method of accounting for deferred income taxes. The asset and liability method requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of temporary differences between financial accounting and tax bases of assets and liabilities. The Company reports uncertainty in income taxes according to GAAP. There was no increase in liabilities for unrecognized tax benefits during the current year. The Company recognizes accrued interest related to unrecognized tax benefits in interest expense and penalties in general and administrative expense. There was neither interest nor penalty at September 30, 2015.

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Note 2 - Income Tax Disclosure: Schedule of Deferred Tax Assets (Tables)

12 Months Ended

Sep. 30, 2015

Tables/Schedules

Schedule of Deferred Tax Assets

Deferred Tax Assets		2015	2014
Depletion carryforward	$	301,000	$  302,000
Net operating loss carryforward		691,000	648,000
Accrued shareholder salary		281,000	205,000
Other		3,000	-
Total Net Deferred Tax Assets		1,276,000	1,155,000
Less valuation allowance		(1,276,000)	(1,155,000)
Net Deferred Tax Asset	$	-	$       -

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Note 7 - Oil and Gas Exploration and Production Industries Disclosures: Summary of Changes Present Value of Estimated Future Net Revenue (Details) - USD ($)	12 Months Ended
	Sep. 30, 2015	Sep. 30, 2014
Details
Changes in Estimated Future Development Costs	$ 256,000	$ 262,000
Sales and Transfers of Oil and Gas Produced, Net of Production Costs	(40,000)	(81,000)
Net Increase (Decrease) in Sales and Transfer Prices and Production Costs	(123,000)	31,000
Revisions of quantity estimates	(41,000)	4,000
Accretion of Discount	26,000	26,000
Standardized Measure of Discounted Future Net Cash Flow of Proved Oil and Gas Reserves, Other	25,000	14,000
Standardized Measure of Discounted Future Net Cash Flows Relating to Proved Oil and Gas Reserves	$ 103,000	$ 256,000

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Consolidated Statement of Stockholders' Equity - USD ($)	Common Stock	Additional paid-in capital	Accumulated deficit	Treasury stock	Total
Balance at Sep. 30, 2013	$ 132,000	$ 13,881,000	$ (11,411,000)		$ 2,602,000
Balance - shares at Sep. 30, 2013	13,229,888
Net loss			(305,000)		(305,000)
Acquisition of treasury stock				$ (29,000)	(29,000)
Retirement of treasury stock - value	$ (2,000)	(27,000)		29,000
Retirement of treasury stock - shares	(254,567)
Balance at Sep. 30, 2014	$ 130,000	13,854,000	(11,716,000)		2,268,000
Balance - shares at Sep. 30, 2014	12,975,321
Net loss			(348,000)		(348,000)
Acquisition of treasury stock				(4,000)	(4,000)
Retirement of treasury stock - value	$ (1,000)	(3,000)		$ 4,000
Retirement of treasury stock - shares	(52,089)
Balance at Sep. 30, 2015	$ 129,000	$ 13,851,000	$ (12,064,000)		$ 1,916,000
Balance - shares at Sep. 30, 2015	12,923,232

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Note 3 - Related Party Transactions Disclosure

12 Months Ended

Sep. 30, 2015

Notes

Note 3 - Related Party Transactions Disclosure

Note 3 - Related Party Transactions. Effective October 1, 2011, the Company entered into a five year employment agreement with its president which provides for a base salary of $200,000 annually, plus escalations of not less than 3% annually. The agreement contains provisions providing for payments to the president in the event of his disability or termination of his employment. The agreement also provides that he will receive an annual bonus equal to no less than 20% of the Company’s earnings before income tax, payable, at his election, in cash or common stock of the Company at then fair market value. At September 30, 2015, other accrued expense includes $802,000 in salary payable to the Company’s president that the president has elected to defer.

In 2015 and 2014, the Company expended $4,000 and $29,000 to acquire 52,089 and 254,567 shares of common stock, respectively.  These 52,089 and 254,567 treasury shares were retired in 2015 and 2014, respectively.

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Note 2 - Income Tax Disclosure: Schedule of Effective Income Tax Rate Reconciliation (Tables)

12 Months Ended

Sep. 30, 2015

Tables/Schedules

Schedule of Effective Income Tax Rate Reconciliation

		2015	2014
Tax benefit at 35% of net earnings	$	(121,000)	(106,000)
State income tax, net of Federal benefit		-	-
Change in valuation allowance for net deferred tax assets		121,000	106,000
Income tax expense	$	-	-

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Note 7 - Oil and Gas Exploration and Production Industries Disclosures: Capitalized Costs Relating to Oil and Gas Producing Activities Disclosure (Details)	Sep. 30, 2015 USD ($)
Details
Capitalized Costs, Proved Properties	$ 334,000
Capitalized Costs, Accumulated Depreciation, Depletion, Amortization and Valuation Allowance Relating to Oil and Gas Producing Activities	(185,000)
Capitalized Costs, Oil and Gas Producing Activities, Net	$ 149,000

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Note 1 - Nature of Operations and Summary of Significant Accounting Policies.: Cash and Cash Equivalents, Policy (Policies)

12 Months Ended

Sep. 30, 2015

Policies

Cash and Cash Equivalents, Policy

Cash Equivalents and Fair Values of Financial Instruments: For purposes of the statement of cash flows, the Company considers all highly liquid investments with an original maturity of three months or less to be cash equivalents. The carrying amount reported on the balance sheet for cash and cash equivalents approximates its fair value.