10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

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

For the quarterly period ended June 30, 2020

☐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	(I.R.S. Employer
incorporation or organization)	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, a small reporting company, or an emerging growth company.

Large accelerated filer [  ]Accelerated filer [  ] 

Non-accelerated filer [  ]Smaller reporting company ☒ 

Emerging growth company ☐

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 31, 2020: 12,185,409

ALTEX INDUSTRIES, INC.

Item 1. Financial Statements

ALTEX INDUSTRIES, INC. AND SUBSIDIARIES
Condensed Consolidated Balance Sheets
(Unaudited)
	June 30	September 30
	2020	2019
Assets
Current assets
Cash and cash equivalents	$     2,181,000	$     2,266,000
Other	26,000	20,000
Total current assets	2,207,000	2,286,000
Property and equipment, at cost
Proved oil and gas properties (successful efforts method)	333,000	333,000
Less accumulated depreciation, depletion, and amortization	(281,000)	(275,000)
Net property and equipment	52,000	58,000
Total assets	2,259,000	2,344,000
Liabilities and Stockholders’ Equity
Current liabilities
Accounts payable	1,000	10,000
Other accrued expenses	1,080,000	1,081,000
Total current liabilities	1,081,000	1,091,000
Commitments and Contingencies	-	-
Stockholders’ equity
Preferred stock, $0.01 par value. Authorized 5,000,000 shares, none issued	-	-
Common stock, $0.01 par value. Authorized 50,000,000 shares; 12,185,409 shares issued and outstanding	122,000	122,000
Additional paid-in capital	13,798,000	13,798,000
Accumulated deficit	(12,742,000)	(12,667,000)
Total stockholders' equity	1,178,000	1,253,000
Total liabilities and stockholders' equity	$     2,259,000	$     2,344,000
See notes to unaudited condensed consolidated financial statements

ALTEX INDUSTRIES, INC.
Condensed Consolidated Statements of Operations
(Unaudited)
	Three Months Ended		NIne Months Ended
	June 30		June 30
	2020	2019	2020	2019
Revenue
Oil and gas sales	$      4,000	$      12,000	$     28,000	$   43,000
Total revenue	4,000	12,000	28,000	43,000
Costs and expenses
Production taxes	1,000	-	2,000	3,000
General and administrative	34,000	35,000	113,000	115,000
Depreciation, depletion, and amortization	2,000	3,000	6,000	9,000
Total costs and expenses	37,000	38,000	121,000	127,000
Loss from operations	(33,000)	(26,000)	(93,000)	(84,000)
Other income
Interest income	1,000	12,000	17,000	38,000
Other income	1,000	41,000	1,000	65,000
Total other income	2,000	53,000	18,000	103,000
Net income (loss)	$    (31,000)	$      27,000	$    (75,000)	$   19,000
Income (loss) per share	$       (0.00)	$        0.00	$      (0.01)	$     0.00
Weighted average shares outstanding	12,185,409	12,262,596	12,185,409	12,318,973
See notes to unaudited condensed consolidated financial statements

ALTEX INDUSTRIES, INC.
Condensed Consolidated Statements of Cash Flows
(Unaudited)
	Nine months ended
	June 30
	2020	2019
Cash flows provided by (used in) operating activities
Net income (loss)	$     (75,000)	$       19,000
Adjustments to reconcile net loss to net cash used in operating activities
Depreciation, depletion, and amortization	6,000	9,000
Increase in accounts receivable	-	(2,000)
Increase in other current assets	(6,000)	(6,000)
Decrease in accounts payable	(9,000)	(7,000)
Decrease in other accrued expenses	(1,000)	-
Net cash provided by (used in) operating activities	(85,000)	13,000
Cash flows from financing activities
Acquisition of treasury stock	-	(7,000)
Net cash used in financing activities	-	(7,000)
Net increase (decrease) in cash and cash equivalents	(85,000)	6,000
Cash and cash equivalents at beginning of period	2,266,000	2,274,000
Cash and cash equivalents at end of period	$ 2,181,000	$ 2,280,000
Supplemental disclosures
Cash paid for interest	$              -	$            -
Cash paid for income taxes	$              -	$            -
See notes to unaudited condensed consolidated financial statements

ALTEX INDUSTRIES, INC.
Condensed Consolidated Statements of Stockholders' Equity
(Unaudited)
For the nine months ended June 30, 2020	Preferred Stock		Common Stock		Additional paid-in capital	Accumulated deficit	Treasury stock	Total stockholders' equity
	Shares	Amount	Shares	Amount
Balance at September 30, 2019			12,185,409	$   122,000	$   13,798,000	$         (12,667,000)	$                      -	$     1,253,000
Net loss						(75,000)		(75,000)
Dividends declared
Preferred stock, none
Common stock, none
Balance at June 30, 2020			12,185,409	$   122,000	$   13,798,000	$         (12,742,000)	$                      -	$     1,178,000
For the three months ended June 30, 2020	Preferred Stock		Common Stock		Additional paid-in capital	Accumulated deficit	Treasury stock	Total stockholders' equity
	Shares	Amount	Shares	Amount
Balance at March 31, 2020			12,185,409	122,000	13,798,000	$         (12,711,000)	$                      -	$     1,209,000
Net loss						(31,000)		(31,000)
Dividends declared
Preferred stock, none
Common stock, none
Balance at June 30, 2020			12,185,409	$   122,000	$   13,798,000	$         (12,742,000)	$                      -	$     1,178,000
See notes to unaudited condensed consolidated financial statements

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, 2019, 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, 2020, 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 months 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 2019 Annual Report on Form 10-K, and it is suggested that these condensed consolidated financial statements be read in conjunction therewith.

“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.

COVID-19

COVID-19 has had and is likely to continue to have a material impact on the Company, its operations, its financial condition, and its results of operations. The world-wide reduction in demand for oil resulting from changes in social behavior designed to reduce the likelihood of the transmission of the SARS-CoV-2 virus is likely to contribute to significant continuing price weakness for crude oil. The Company’s president and all of its directors are in the high-risk group for COVID-19. The illness or death of any of them could materially impact the Company’s ability to continue normal operations. The social distancing measures that have been implemented by the State of Colorado, where the Company’s president, the Company’s administrative assistant, the Company’s bookkeeper, the Company’s accountant, and two of the Company’s directors reside, have had an impact on the Company’s daily administrative operations and are likely to continue to do so. Continuing low oil prices are likely to reduce the Company’s revenue, increase its losses, and reduce its cash balances. Monetary policy responses by the Federal Reserve and risk-reducing investment activity in international capital markets as a result of the anticipated consequences of the COVID-19 pandemic have resulted in exceptionally low interest rates, thereby reducing the Company’s interest received on cash balances. There may be other material but unanticipated consequences of the COVID-19 pandemic.

Financial Condition

The Company used $85,000 cash in operating activities in the nine months ended June 30, 2020, and operating activities provided $13,000 cash in the nine months ended June 30, 2019. At June 30, 2020, and September 30, 2019, $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’s president may require the Company to pay the unpaid salary and payroll tax liability at any time.

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 the effects of the COVID-19 pandemic, 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.

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 31, 2020, 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

At current oil and gas prices, the current level of cash balances, and 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 the effects of COVID-19, 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.

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.

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 31, 2020	By: /s/ STEVEN H. CARDIN
	Steven H. Cardin
	Chief Executive Officer and Principal Financial Officer

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 31, 2020
Steven H. Cardin	Date
Principal Executive Officer and Principal Financial Officer

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, 2020, 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 31, 2020	By: /s/ STEVEN H. CARDIN
	Steven H. Cardin
	Chief 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, 2020, 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 31, 2020	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, 2020	Jul. 31, 2020
Details
Registrant CIK	0000775057
Fiscal Year End	--09-30
Registrant Name	ALTEX INDUSTRIES INC
SEC Form	10-Q
Period End date	Jun. 30, 2020
Tax Identification Number (TIN)	84-0989164
Number of common stock shares outstanding		12,185,409
Filer Category	Non-accelerated Filer
Current with reporting	Yes
Interactive Data Current	Yes
Shell Company	false
Small Business	true
Emerging Growth Company	false
Document Quarterly Report	true
Document Transition Report	false
Entity File Number	1-9030
Entity Incorporation, State or Country Code	DE
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
Entity Address, Address Description	Address of principal executive offices
City Area Code	303
Local Phone Number	265-9312
Amendment Flag	false
Document Fiscal Year Focus	2020
Document Fiscal Period Focus	Q3

XML

Condensed Consolidated Balance Sheets - USD ($)	Jun. 30, 2020	Sep. 30, 2019
Current assets
Cash and cash equivalents	$ 2,181,000	$ 2,266,000
Other	26,000	20,000
Total current assets	2,207,000	2,286,000
Property and equipment, at cost
Proved oil and gas properties (successful efforts method)	333,000	333,000
Less accumulated depreciation, depletion, and amortization	(281,000)	(275,000)
Net property and equipment	52,000	58,000
Total assets	2,259,000	2,344,000
Current liabilities:
Accounts payable	1,000	10,000
Other accrued expenses	1,080,000	1,081,000
Total current liabilities	1,081,000	1,091,000
Commitments and Contingencies	0	0
Stockholders' equity:
Preferred stock	0	0
Common stock	122,000	122,000
Additional paid-in capital	13,798,000	13,798,000
Accumulated deficit	(12,742,000)	(12,667,000)
Total stockholders' equity	1,178,000	1,253,000
Total liabilities and stockholders' equity	$ 2,259,000	$ 2,344,000

XML

Condensed Consolidated Balance Sheets - Parenthetical - $ / shares	Jun. 30, 2020	Sep. 30, 2019
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	12,185,409	12,185,409
Common Stock, Shares, Outstanding	12,185,409	12,185,409

XML

Condensed Consolidated Statements of Operations - USD ($)	3 Months Ended		9 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Revenue
Oil and gas sales	$ 4,000	$ 12,000	$ 28,000	$ 43,000
Total revenue	4,000	12,000	28,000	43,000
Costs and expenses
Production taxes	1,000	0	2,000	3,000
General and administrative	34,000	35,000	113,000	115,000
Depreciation, depletion, and amortization	2,000	3,000	6,000	9,000
Total costs and expenses	37,000	38,000	121,000	127,000
Loss from operations	(33,000)	(26,000)	(93,000)	(84,000)
Other Nonoperating Income (Expense)
Interest income	1,000	12,000	17,000	38,000
Other income	1,000	41,000	1,000	65,000
Total other income	2,000	53,000	18,000	103,000
Net income (loss)	$ (31,000)	$ 27,000	$ (75,000)	$ 19,000
Gain (loss) per share	$ (0.00)	$ 0.00	$ (0.01)	$ 0.00
Weighted-average shares outstanding	12,185,409	12,262,596	12,185,409	12,318,973

XML

Consolidated Statements of Stockholders' Equity - USD ($)	Common Stock	Additional Paid-in Capital	Retained Earnings	Treasury Stock	Total
Stockholders' Equity Attributable to Parent, Beginning Balance at Sep. 30, 2019	$ 122,000	$ 13,798,000	$ (12,667,000)	$ 0	$ 1,253,000
Shares, Outstanding, Beginning Balance at Sep. 30, 2019	12,185,409
Net income (loss)			(75,000)		(75,000)
Stockholders' Equity Attributable to Parent, Ending Balance at Jun. 30, 2020	$ 122,000	13,798,000	(12,742,000)	0	1,178,000
Shares, Outstanding, Ending Balance at Jun. 30, 2020	12,185,409
Stockholders' Equity Attributable to Parent, Beginning Balance at Mar. 31, 2020	$ 122,000	13,798,000	(12,711,000)	0	1,209,000
Shares, Outstanding, Beginning Balance at Mar. 31, 2020	12,185,409
Net income (loss)			(31,000)		(31,000)
Stockholders' Equity Attributable to Parent, Ending Balance at Jun. 30, 2020	$ 122,000	$ 13,798,000	$ (12,742,000)	$ 0	$ 1,178,000
Shares, Outstanding, Ending Balance at Jun. 30, 2020	12,185,409

XML

Condensed Consolidated Statements of Cash Flows - USD ($)	9 Months Ended
	Jun. 30, 2020	Jun. 30, 2019
Cash flows provided by (used in) operating activities
Net income (loss)	$ (75,000)	$ 19,000
Adjustments to reconcile net loss to net cash used in operating activities
Depreciation, depletion, and amortization	6,000	9,000
Increase in accounts receivable	0	(2,000)
Increase in other current assets	(6,000)	(6,000)
Decrease in accounts payable	(9,000)	(7,000)
Decrease in other accrued expenses	(1,000)	0
Net cash provided by (used in) operating activities	(85,000)	13,000
Cash flows from financing activities
Acquisition of treasury stock	0	(7,000)
Net cash used in financing activities	0	(7,000)
Net increase (decrease) in cash and cash equivalents	(85,000)	6,000
Cash and cash equivalents at beginning of period	2,266,000	2,274,000
Cash and cash equivalents at end of period	2,181,000	2,280,000
Supplemental disclosures
Cash paid for interest	0	0
Cash paid for income taxes	$ 0	$ 0

XML

Note 1 Basis of Presentation

9 Months Ended

Jun. 30, 2020

Notes

Note 1 Basis of Presentation

Note 1 - Basis of Presentation. The accompanying Condensed Consolidated Balance Sheet as of September 30, 2019, 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, 2020, 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 months 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 2019 Annual Report on Form 10-K, and it is suggested that these condensed consolidated financial statements be read in conjunction therewith.