Deferred executive compensation of more than $1.2 million continues to weigh on the Denver-based energy holding company’s balance sheet.

May 4, 2026

Altex Industries, Inc., a Denver-based smaller reporting company whose operations run through its subsidiary Altex Oil Corporation, reported a wider net loss for the three months ended March 31, 2026, even as it narrowed losses on a year-to-date basis. The Delaware-incorporated firm continues to generate minimal revenue from oil and gas sales and remains heavily dependent on interest income from cash balances to offset operating expenses.

Quarterly Loss Widens on Higher Operating Costs

For the three-month period, Altex recorded a net loss of $47,000, compared with a $32,000 loss in the same quarter a year earlier. Oil and gas sales were unchanged at $4,000, while total operating expenses climbed to $72,000 from $63,000.

The company attributed the rise in general and administrative costs to:

• Higher medical insurance premiums
• Increased audit and legal fees
• Greater office rent expense
• State franchise taxes

Interest income — a key contributor to total revenue and other income — slipped to $21,000 from $27,000, reflecting lower interest rates on the company’s cash holdings.

Six-Month Picture Shows Improvement

Year-to-date results told a different story. For the six months ended March 31, 2026, the net loss narrowed substantially to $77,000 from $148,000 in the comparable prior-year period. The company said the improvement was driven largely by a sharp drop in general and administrative expense, which fell to $132,000 from $211,000.

The prior period had included a $94,000 bonus expense and related payroll tax liability tied to the company president’s employment agreement, which inflated the year-over-year comparison. Oil and gas sales rose modestly over the half-year, totaling $11,000 versus $9,000, while interest income declined to $46,000 from $57,000.

Balance Sheet and Liquidity

Liquidity remained the foundation of Altex’s balance sheet. As of March 31, 2026, the company held roughly $2.48 million in cash and equivalents, down from about $2.55 million at the end of September 2025. Total assets stood at $2.65 million, while total liabilities edged lower to $1.39 million. Stockholders’ equity declined to $1.27 million from $1.34 million, alongside an accumulated deficit of $12.53 million.

A notable feature of the liability structure is $1,235,000 in accrued expenses owed to a related party, representing deferred but unpaid salary, bonus, and associated payroll taxes for the president. The president has elected to defer payment but retains the right to demand settlement at any time. Under his employment agreement, any unpaid bonus may be received in cash or in shares of company common stock at fair market value.

Cash Flow and Outlook

Cash flow disclosures showed the company used $67,000 in operating activities during the six-month period, up from $49,000 a year earlier. There were no investing or financing activities during the period.

Management acknowledged that without an investment in producing oil and gas wells or another revenue-generating venture, Altex is likely to continue posting negative cash flow from operations and net losses at current production levels, cash balances, interest rates, and commodity prices. The company has no material commitments for capital expenditures and no internal or external sources of liquidity beyond working capital, asset sales, interest income, and cash generated by its existing producing oil and gas properties.

Other Disclosures

Altex also addressed climate-related considerations, indicating that neither climate change itself nor regulations designed to mitigate its effects are expected to materially affect the company’s financial condition or operating results. Management evaluated the company’s disclosure controls and procedures and concluded they remain effective.

As of May 1, 2026, Altex had 11,187,640 shares of common stock outstanding.