10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

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

For the quarterly period ended June 30, 2018

[   ] 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  80424-1057

(Address of principal executive offices) (Zip Code)

(303) 265-9312

(Registrant's telephone number, including area code)

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 whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a small 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 Exchange Act). Yes [  ] No [ X ]

Number of shares outstanding of issuer's Common Stock as of July 20, 2018: 12,555,131

PART I - FINANCIAL INFORMATION
Item 1. Financial Statements
ALTEX INDUSTRIES, INC. AND SUBSIDIARIES
Condensed Consolidated Balance Sheets
(Unaudited)
	June 30,			September 30,
	2018			2017
Assets
Current assets
Cash and cash equivalents	$	2,287,000		$	2,349,000
Accounts receivable		5,000			-
Other		23,000			17,000
Total current assets		2,315,000			2,366,000
Property and equipment, at cost
Proved oil and gas properties (successful efforts method)		333,000			333,000
Other		-			3,000
Total property and equipment, at cost		333,000			336,000
Less accumulated depreciation, depletion, and amortization		(237,000	)		(227,000	)
Net property and equipment		96,000			109,000
Total assets	$	2,411,000		$	2,475,000
Liabilities and Stockholders' Equity
Current liabilities
Accounts payable	$	3,000		$	4,000
Other accrued expenses		1,078,000			1,080,000
Total current liabilities		1,081,000			1,084,000
Commitments and Contingencies		-			-
Stockholders' equity
Preferred stock, $.01 par value. Authorized 5,000,000 shares, none issued		-			-
Common stock, $.01 par value. Authorized 50,000,000 shares; 12,597,631 shares issued; 12,555,131 and 12,597,631 shares outstanding in June and September, respectively		126,000			126,000
Additional paid-in capital		13,827,000			13,827,000
Accumulated deficit		(12,619,000	)		(12,562,000	)
Treasury stock, at cost, 42,500 shares		(4,000	)		-
Total stockholders' equity		1,330,000			1,391,000
Total liabilities and stockholders' equity	$	2,411,000		$	2,475,000

See notes to unaudited condensed consolidated financial statements

1

ALTEX INDUSTRIES, INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Operations
(Unaudited)
	Three Months Ended						Nine Months Ended
	June 30						June 30
	2018			2017			2018			2017
Revenue
Oil and gas sales	$	14,000		$	14,000		$	53,000		$	51,000
Total revenue		14,000			14,000			53,000			51,000
Costs and expenses
Production taxes		1,000			-			4,000			3,000
General and administrative		35,000			39,000			118,000			142,000
Depreciation, depletion, and amortization		4,000			5,000			13,000			17,000
Total costs and expenses		40,000			44,000			135,000			162,000
Loss from operations		(26,000	)		(30,000	)		(82,000	)		(111,000	)
Other income
Interest income		10,000			5,000			19,000			14,000
Other income		1,000			-			6,000			3,000
Total other income		11,000			5,000			25,000			17,000
Net loss	$	(15,000	)	$	(25,000	)	$	(57,000	)	$	(94,000	)
Loss per share	$	(0.00	)	$	(0.00	)	$	(0.00	)	$	(0.01	)
Weighted average shares outstanding		12,561,230			12,644,452			12,564,279			12,659,177

See notes to unaudited condensed consolidated financial statements

2

ALTEX INDUSTRIES, INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Cash Flows
(Unaudited)
	Nine months ended
	June 30
	2018			2017
Cash flows used in operating activities
Net loss	$	(57,000	)	$	(94,000	)
Adjustments to reconcile net loss to net cash used in operating activities
Depreciation, depletion, and amortization		13,000			17,000
Decrease (increase) in accounts receivable		(5,000	)		1,000
Decrease in other current assets		(6,000	)		(6,000	)
Increase in accounts payable		(1,000	)		(4,000	)
Increase (decrease) in other accrued expenses		(2,000	)		1,000
Net cash used in operating activities		(58,000	)		(85,000	)
Cash flows from financing activities
Acquisition of treasury stock		(4,000	)		(8,000	)
Net cash used in financing activities		(4,000	)		(8,000	)
Net decrease in cash and cash equivalents		(62,000	)		(93,000	)
Cash and cash equivalents at beginning of period		2,349,000			2,472,000
Cash and cash equivalents at end of period	$	2,287,000		$	2,379,000
Noncash investing and financing activities
Retirement of property plant and equipment	$	3,000		$	-
Supplemental disclosures
Cash paid for interest	$	-		$	-
Cash paid for income taxes	$	-		$	-

See notes to unaudited condensed consolidated financial statements

3

ALTEX INDUSTRIES, INC. AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements

(Unaudited)

Note 1 ‑ Basis of Presentation. The accompanying Condensed Consolidated Balance Sheet as of September 30, 2017, which was derived from audited financial statements, and the unaudited interim condensed consolidated financial statements of the Company have been prepared in accordance with U.S. GAAP for interim financial information, the instructions to Form 10-Q and Article 10 of Regulation S-X. In the opinion of management, the accompanying unaudited, consolidated, condensed financial statements contain all adjustments necessary to present fairly the financial position of the Company as of June 30, 2018, and the cash flows and results of operations for the three and nine months then ended. Such adjustments consisted only of normal recurring items. The results of operations for the three and nine months ended June 30 are not necessarily indicative of the results for the full year. Certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted. The accounting policies followed by the Company are set forth in Note 1 to the Company's consolidated financial statements contained in the Company's 2017 Annual Report on Form 10‑K, and it is suggested that these condensed consolidated financial statements be read in conjunction therewith.

Adoption of New Accounting Standards.We have adopted the following recent accounting pronouncement in these financial statements with no significant impact on reported financial position, results of operations or cash flow:

ASU 2014-09, Revenue - Revenue from Contracts with Customers. The new standard, as amended, requires that we recognize revenue in the amount to which we expect to be entitled for delivery of promised goods and services to our customers. The new standard also resulted in enhanced revenue-related disclosures, including any significant judgments and changes in judgments. Additionally, the new standard requires the deferral of incremental direct selling costs to the period in which the related revenue is recognized.

We adopted the standard as of January 1, 2018 using the modified retrospective approach applied to all contracts that were not completed at adoption based on the contract terms in existence at adoption. No adjustment was required to beginning retained earnings as a result of this adoption and none of the enhanced revenue-related disclosures were required.

Note 2 – Income Taxes. The Company does not anticipate that the Tax Cuts and Jobs Act will have a material effect on the Company.

"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‑Q 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 of oil and gas; 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 and in the Company's filings with the Securities and Exchange Commission.

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operation.

Financial Condition

Cash balances decreased $62,000 in the nine months ended June 30, 2018. At June 30, 2018, $1,073,000 of other accrued expenses is accrued but unpaid salary (and related accrued payroll tax liability) due to the Company's president that the Company's president has elected to defer. 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 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, the possibility of a change in the interest rates the Company realizes on cash balances, and changes in the price of oil and natural gas, the Company knows of no other trends or any known 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.

4

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 July 20, 2018, the Company had no material commitments for capital expenditures.

The Company regularly assesses its exposure to environmental liability and reclamation, restoration, and dismantlement expense ("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.

Results of Operations

General and administrative expense decreased from $142,000 for the nine months ended June 30, 2017, to $118,000 for the nine months ended June 30, 2018, principally because of decreased salary and professional expense. Interest income increased from $5,000 and $14,000 for the three and nine months ended June 30, 2017, respectively, to $10,000 and $19,000 for the three and nine months ended June 30, 2018, because of higher realized interest rates earned on cash balances. At the current level of cash balances and at current interest rates, 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 known trends or uncertainties that have had or that the Company reasonably expects will have a material favorable or unfavorable impact on net sales or revenues or income from continuing operations.

Liquidity and Capital Resources

Operating Activities. The Company used $58,000 and $85,000 cash in operating activities in the nine months ended June 30, 2018, and June 30, 2017, respectively.

Financing Activities. The Company acquired 42,500 shares of its common stock for $4,000 during Q1FY18 and 90,000 shares of its common stock for $8,000 during Q1FY17.

Item 4. 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 that could significantly affect internal controls subsequent to the date the Company carried out its evaluation.

Changes in Internal Control Over Financial Reporting

During the period covered by this Report there has been no change in our internal control over financial reporting that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

5

PART II - OTHER INFORMATION

Item 6. Exhibits

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.

SIGNATURES

Pursuant to the requirements 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.

Date: July 20, 2018	By: /s/ STEVEN H. CARDIN
	Steven H. Cardin
	Chief Executive Officer and Principal Financial Officer

6

EX-31

EXHIBIT 31

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

I, Steven H. Cardin, certify that:

1. I have reviewed this Form 10-Q 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)) and internal control over financial reporting (as defined in Exchange Act Rules 13a–15(f) and 15d–15(f)) 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) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) 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

(d) 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	July 20, 2018
Steven H. Cardin	Date
Principal Executive Officer and Principal Financial Officer

EX-32

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 Quarterly Report of Altex Industries, Inc. (the "Company") on Form 10-Q for the period ending June 30, 2018, 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: July 20, 2018	By: /s/ STEVEN H. CARDIN
	Steven H. Cardin
	Chief Executive Officer and Principal Financial Officer

XML

Document and Entity Information - shares	9 Months Ended
	Jun. 30, 2018	Jul. 20, 2018
Details
Registrant Name	ALTEX INDUSTRIES INC
Registrant CIK	0000775057
SEC Form	10-Q
Period End date	Jun. 30, 2018
Fiscal Year End	--09-30
Trading Symbol	altx
Tax Identification Number (TIN)	840989164
Number of common stock shares outstanding		12,555,131
Filer Category	Smaller Reporting Company
Current with reporting	Yes
Voluntary filer	No
Well-known Seasoned Issuer	No
Emerging Growth Company	false
Ex Transition Period	false
Amendment Flag	false
Document Fiscal Year Focus	2018
Document Fiscal Period Focus	Q3
Entity Incorporation, State Country Name	Delaware
Entity Address, Address Line One	PO Box 1057
Entity Address, City or Town	Breckenridge
Entity Address, State or Province	CO
Entity Address, Postal Zip Code	80424-1057
City Area Code	303
Local Phone Number	265-9312

XML

Consolidated Balance Sheets - USD ($)	Jun. 30, 2018	Sep. 30, 2017
Current assets
Cash and cash equivalents	$ 2,287,000	$ 2,349,000
Accounts receivable	5,000	0
Other	23,000	17,000
Total current assets	2,315,000	2,366,000
Property and equipment, at cost
Proved oil and gas properties (successful efforts method)	333,000	333,000
Other	0	3,000
Total property and equipment, at cost	333,000	336,000
Less accumulated depreciation, depletion, and amortization	(237,000)	(227,000)
Net property and equipment	96,000	109,000
Total assets	2,411,000	2,475,000
Current liabilities:
Accounts payable	3,000	4,000
Other accrued expenses	1,078,000	1,080,000
Total current liabilities	1,081,000	1,084,000
Commitments and Contingencies	0	0
Stockholders' equity:
Preferred stock	0	0
Common stock	126,000	126,000
Additional paid-in capital	13,827,000	13,827,000
Accumulated deficit	(12,619,000)	(12,562,000)
Treasury stock	(4,000)	0
Total stockholders' equity	1,330,000	1,391,000
Total liabilities and stockholders' equity	$ 2,411,000	$ 2,475,000

XML

Consolidated Balance Sheets - Parenthetical - $ / shares	Jun. 30, 2018	Sep. 30, 2017
Details
Preferred Stock, Par or Stated Value Per Share	$ 0.01	$ 0.01
Preferred Stock, Shares Authorized	5,000,000	5,000,000
Preferred Stock, Shares Issued	0	0
Common Stock, Par or Stated Value Per Share	$ 0.01	$ 0.01
Common Stock, Shares Authorized	50,000,000	50,000,000
Common Stock, Shares, Issued	12,597,631	12,597,631
Common Stock, Shares, Outstanding	12,555,131	12,597,631
Treasury Stock, Shares	42,500	42,500

XML

Consolidated Statement of Operations - USD ($)	3 Months Ended		9 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Revenue
Oil and gas sales	$ 14,000	$ 14,000	$ 53,000	$ 51,000
Total revenue	14,000	14,000	53,000	51,000
Costs and expenses
Production taxes	1,000	0	4,000	3,000
General and administrative	35,000	39,000	118,000	142,000
Depreciation, depletion, and amortization	4,000	5,000	13,000	17,000
Total costs and expenses	40,000	44,000	135,000	162,000
Loss from operations	(26,000)	(30,000)	(82,000)	(111,000)
Other Nonoperating Income (Expense)
Interest income	10,000	5,000	19,000	14,000
Interest income	1,000	0	6,000	3,000
Total other income	11,000	5,000	25,000	17,000
Net Loss	$ (15,000)	$ (25,000)	$ (57,000)	$ (94,000)
Basic and diluted net loss per common share	$ (0.00)	$ (0.00)	$ (0.00)	$ (0.01)
Basic and diluted weighted-average common shares outstanding	12,561,230	12,644,452	12,564,279	12,659,177

XML

Consolidated Statements of Cash Flows - USD ($)	9 Months Ended
	Jun. 30, 2018	Jun. 30, 2017
Net Cash Provided by (Used in) Operating Activities
Net Loss	$ (57,000)	$ (94,000)
Adjustments to Reconcile Net Income (Loss) to Cash Provided by (Used in) Operating Activities
Depreciation, depletion, and amortization	13,000	17,000
Increase in accounts receivable	(5,000)	1,000
Decrease in other current assets	(6,000)	(6,000)
Increase (decrease) in accounts payable	(1,000)	(4,000)
Decrease in other accrued expenses	(2,000)	1,000
Net Cash Provided by (Used in) Operating Activities, Continuing Operations	(58,000)	(85,000)
Net Cash Provided by (Used in) Financing Activities
Payments for Repurchase of Common Stock	(4,000)	(8,000)
Net Cash Provided by (Used in) Financing Activities	(4,000)	(8,000)
Cash and Cash Equivalents, Period Increase (Decrease)	(62,000)	(93,000)
Cash and Cash Equivalents, at Carrying Value, Beginning Balance	2,349,000	2,472,000
Cash and Cash Equivalents, at Carrying Value, Ending Balance	2,287,000	2,379,000
Noncash investing and financing activities
Retirement of property plant and equipment	3,000	0
Supplemental Cash Flow Information
Interest Paid, Including Capitalized Interest, Operating and Investing Activities	0	0
Income Taxes Paid, Net	$ 0	$ 0

XML

Note 1 - Basis of Presentation

9 Months Ended

Jun. 30, 2018

Notes

Note 1 - Basis of Presentation

Note 1 Basis of Presentation. The accompanying Condensed Consolidated Balance Sheet as of September 30, 2017, which was derived from audited financial statements, and the unaudited interim condensed consolidated financial statements of the Company have been prepared in accordance with U.S. GAAP for interim financial information, the instructions to Form 10-Q and Article 10 of Regulation S-X. In the opinion of management, the accompanying unaudited, consolidated, condensed financial statements contain all adjustments necessary to present fairly the financial position of the Company as of June 30, 2018, and the cash flows and results of operations for the three and nine months then ended. Such adjustments consisted only of normal recurring items. The results of operations for the three and nine months ended June 30 are not necessarily indicative of the results for the full year. Certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted. The accounting policies followed by the Company are set forth in Note 1 to the Company's consolidated financial statements contained in the Company's 2017 Annual Report on Form 10 K, and it is suggested that these condensed consolidated financial statements be read in conjunction therewith.

Adoption of New Accounting Standards. We have adopted the following recent accounting pronouncement in these financial statements with no significant impact on reported financial position, results of operations or cash flow:

ASU 2014-09, Revenue - Revenue from Contracts with Customers. The new standard, as amended, requires that we recognize revenue in the amount to which we expect to be entitled for delivery of promised goods and services to our customers. The new standard also resulted in enhanced revenue-related disclosures, including any significant judgments and changes in judgments. Additionally, the new standard requires the deferral of incremental direct selling costs to the period in which the related revenue is recognized.

We adopted the standard as of January 1, 2018 using the modified retrospective approach applied to all contracts that were not completed at adoption based on the contract terms in existence at adoption. No adjustment was required to beginning retained earnings as a result of this adoption and none of the enhanced revenue-related disclosures were required.

XML

Note 2 - Income Taxes

9 Months Ended

Jun. 30, 2018

Notes

Note 2 - Income Taxes

Note 2 – Income Taxes. The Company does not anticipate that the Tax Cuts and Jobs Act will have a material effect on the Company.

XML

Note 1 - Basis of Presentation: Adoption of New Accounting Standards (Policies)

9 Months Ended

Jun. 30, 2018

Policies

Adoption of New Accounting Standards

Adoption of New Accounting Standards. We have adopted the following recent accounting pronouncement in these financial statements with no significant impact on reported financial position, results of operations or cash flow:

ASU 2014-09, Revenue - Revenue from Contracts with Customers. The new standard, as amended, requires that we recognize revenue in the amount to which we expect to be entitled for delivery of promised goods and services to our customers. The new standard also resulted in enhanced revenue-related disclosures, including any significant judgments and changes in judgments. Additionally, the new standard requires the deferral of incremental direct selling costs to the period in which the related revenue is recognized.

We adopted the standard as of January 1, 2018 using the modified retrospective approach applied to all contracts that were not completed at adoption based on the contract terms in existence at adoption. No adjustment was required to beginning retained earnings as a result of this adoption and none of the enhanced revenue-related disclosures were required.