Altex Industries Reports Revenue Decline and Net Loss for Three and Nine Months Ended June 30, 2025

Altex Industries, Inc. reported its financial results for the three and nine months ended June 30, 2025, revealing a decline in both revenue and profitability compared to the previous fiscal period. The company generated total revenue of $5 million for the three months ended June 30, 2025, an increase from $4 million in the same period of 2024. However, for the nine months ended June 30, 2025, total revenue decreased to $14 million from $16 million in the prior year. The company experienced a net loss of $12,000 for the quarter and a net loss of $160,000 for the nine-month period, contrasting with net income of $505,000 and $459,000, respectively, in the same periods of 2024.

Operating expenses for Altex increased significantly, totaling $48,000 for the three months ended June 30, 2025, down from $59,000 in the prior year. For the nine-month period, operating expenses rose to $262,000 from $176,000, primarily due to a notable increase in general and administrative expenses, which climbed from $171,000 to $257,000. This increase was largely attributed to a $94,000 bonus expense recognized in accordance with the president's employment agreement. The company also reported a decrease in interest income, which fell to $31,000 for the quarter and $88,000 for the nine months, compared to $34,000 and $93,000, respectively, in the previous year.

In terms of strategic developments, Altex completed the sale of certain oil, gas, and mineral interests in Utah for $525,000 in cash on April 1, 2024. This transaction resulted in a gain on the sale of assets, which was recorded in the financial statements. Additionally, the company extended its office lease on February 15, 2025, leading to the recognition of a right-of-use asset and corresponding lease liability of $166,000. As of June 30, 2025, the company had 11,229,520 shares outstanding, a slight decrease from the previous year.

Operationally, Altex's cash flow from operating activities showed a net outflow of $78,000 for the nine months ended June 30, 2025, compared to a net outflow of $68,000 in the same period of 2024. The company’s cash and cash equivalents at the end of the reporting period stood at $2.578 million, down from $2.689 million a year earlier. The company noted that it is likely to continue experiencing negative cash flow from operations unless it invests in producing oil and gas wells or other ventures that generate sufficient cash flow.

Looking ahead, Altex Industries indicated that it may face challenges in achieving positive cash flow and profitability unless it makes substantial investments in revenue-generating assets. The company acknowledged that its current levels of oil and gas production, cash balances, and market conditions are unlikely to support revenue exceeding expenses. Management remains cautious about future trends, emphasizing the need for strategic investments to improve financial performance.