What changed in this filing

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Item 1. Financial Statements

2024-08-08 compared with 2024-02-09 · 245 added, 281 removed, 190 unchanged (73% of the section changed)

3 unchanged sentences

Current assets

Cash and cash

Cash and cash equivalents

Accounts receivable:

Oil and natural gas sales

Prepaid drilling

Prepaid costs and expenses

Total current assets

Property and equipment,

Oil and gas properties,

using the full cost method

depreciation, depletion and amortization

Property and equipment, at cost

Oil and gas properties, using the full cost method

Accumulated depreciation, depletion and amortization

( 34,724,533 )

( 34,184,837 )

Property and equipment,

Investments – cost

Operating lease, right-of-use

noncurrent assets

LIABILITIES AND STOCKHOLDERS’

Property and equipment, net

Investments – cost basis

Operating lease, right-of-use asset

Other noncurrent assets

LIABILITIES AND STOCKHOLDERS’ EQUITY

Current liabilities

Accounts payable and accrued

lease liability, current

Accounts payable and accrued expenses

Income tax payable

Operating lease liability, current

Total current liabilities

Long-term liabilities

Operating lease liability,

Operating lease liability, long-term

Asset retirement obligations

income tax liabilities

long-term liabilities

Deferred income tax liabilities

Total long-term liabilities

Total liabilities

7 unchanged sentences

2,239,283 and 2,226,916 shares issued;

2,099,339 and 2,136,000 shares outstanding as of December 31, 2023 and

March 31, 2023, respectively

and, 2,090,000 and 2,091,399 shares outstanding as of June 30, 2024 and March 31, 2024, respectively

Additional paid-in capital

Retained earnings

stock, at cost ( 122,577 and 85,416 shares, respectively)

Treasury stock, at cost ( 149,283

and 135,517 shares, respectively)

( 1,364,167 )

Total stockholders’

liabilities and stockholders’ equity

( 1,175,530 )

Total stockholders’ equity

Total liabilities and stockholders’ equity

accompanying notes are an integral part of the consolidated financial statements.

1 unchanged sentence

STATEMENTS OF OPERATIONS

Three Months Ended

Nine Months Ended

Operating revenue:

the Three Months Ended June 30,

Operating revenues:

Natural gas sales

1 unchanged sentence

Operating expenses:

Accretion of asset retirement

Depreciation, depletion,

and amortization

and administrative

operating expenses

Accretion of asset retirement obligations

Depreciation, depletion and amortization

General and administrative

Total operating expenses

Operating income

Other income (expenses):

Interest income

Other income (expense):

Interest income

Interest expense

Net other income

Income before provision for income taxes

6 unchanged sentences

STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY

Stockholders’

Common Stock Par Value

Paid-In Capital

Retained Earnings

Treasury Stock

Total Stockholders’ Equity

Balance at April 1, 2024

1 unchanged sentence

Dividends paid

Issuance of stock through

options exercised

based compensation

Balance at June 30, 2023

$ ( 590,495 )

Issuance of stock through options exercised

Purchase of stock

based compensation

Balance at September 30, 2023

$ ( 915,751 )

Stock based compensation

Purchase of stock

Balance at December 31, 2023

Balance at June 30, 2024

$ ( 1,364,167 )

Stock Par Value

Common Stock Par Value

Paid-In Capital

Stockholders’

Retained Earnings

Treasury Stock

Total Stockholders’ Equity

Balance at April 1, 2023

$ ( 590,495 )

based compensation

Balance at June 30, 2022

$ ( 590,495 )

Profit from purchase of

stock by insider

based compensation

Balance at September 30, 2022

$ ( 346,001 )

Issuance of stock through

options exercised

Dividends paid

Issuance of stock through options exercised

Stock based compensation

Purchase of stock

Balance at December 31, 2022

Balance at June 30, 2023

$ ( 590,495 )

3 unchanged sentences

Balance at April 1, 2024

Balance at Dec.

Balance at June 30, 2024

Common stock shares, held in treasury:

Balance at April 1, 2024

Common stock shares,

outstanding at December 31, 2023

Balance at June 30, 2024

Common stock shares, outstanding at June 30, 2024

accompanying notes are an integral part of the consolidated financial statements.

1 unchanged sentence

STATEMENTS OF CASH FLOWS

the Nine Months Ended December 31,

Cash flows from operating

Adjustments to reconcile

net income to net cash provided by operating activities:

the Three Months Ended June 30,

Cash flows from operating activities:

Adjustments to reconcile net income to net cash provided by operating activities:

Deferred income tax expense

Stock-based compensation

Depreciation, depletion

and amortization

Accretion of asset retirement

Amortization of debt issuance

Changes in operating assets

and liabilities:

Decrease (increase) in

accounts receivable

Decrease in right-of-use

Depreciation, depletion and amortization

Accretion of asset retirement obligations

Amortization of debt issuance costs

Changes in operating assets and liabilities

Decrease in accounts receivable

Decrease in prepaid expenses

Increase (decrease) in

accounts payable and accrued expenses

Settlement of asset retirement

in operating lease liability

Net cash provided by operating

Cash flows from investing

Additions to oil and gas

( 1,471,543 )

( 4,760,880 )

Additions to other property

and equipment

Drilling refunds

Investment in limited liability

companies at cost

from sale of oil and gas properties and equipment

Net cash used in investing

( 1,365,030 )

( 4,969,269 )

Cash flows from financing

Proceeds from exercise

of stock options

Profits from purchase of

stock by insider

Debt issuance costs

Proceeds from long-term

Reduction of long-term

(Increase) decrease in right-of-use asset

Increase in accounts payable and accrued expenses

Settlement of asset retirement obligations

Increase in income taxes payable

(Increase) decrease in operating lease liability

Net cash provided by operating activities

Cash flows from investing activities:

Additions to oil and gas properties

Investments in limited liability companies at cost

Proceeds from sale of oil and gas properties and equipment

Net cash used in investing activities

Cash flows from financing activities:

Proceeds from exercise of stock options

Dividends paid

of treasury stock

cash used in financing activities

Net increase (decrease) in cash and cash equivalents

Cash and cash equivalents

at beginning of period

and cash equivalents at end of period

Acquisition of treasury stock

Debt issuance costs

Net cash used in financing activities

Net increase in cash and cash equivalents

Cash and cash equivalents at beginning of period

Cash and cash equivalents at end of period

Supplemental disclosure of cash flow information:

Cash paid for interest

Accrued capital expenditures included in accounts payable

Non-cash investing and financing activities:

9 unchanged sentences

the Company owns producing properties and undeveloped acreage in fourteen states.

All of the Company’s oil and gas interests are

operated by others.

All of Company’s oil and gas interests are operated

Basis of Presentation and Significant Accounting Policies

3 unchanged sentences

and Assumptions .

In preparing financial statements in conformity with accounting principles generally accepted in the United States

of America (“GAAP”), management is required to make informed judgments, estimates and assumptions that affect the reported

amounts of assets and liabilities as of the date of the financial statements and affect the reported amounts of revenues and expenses

during the reporting period.

In preparing consolidated financial statements in conformity with accounting principles generally accepted in the

United States of America (“GAAP”), management is required to make informed judgments, estimates and assumptions that affect

the reported amounts of assets and liabilities as of the date of the consolidated financial statements and affect the reported amounts

of revenues and expenses during the reporting period.

In addition, significant estimates are used in determining proved oil and gas reserves.

Although management

believes its estimates and assumptions are reasonable, actual results may differ materially from those estimates.

The estimate of the

Company’s oil and natural gas reserves, which is used to compute depreciation, depletion, amortization and impairment of oil and

gas properties, is the most significant of the estimates and assumptions that affect these reported results.

Although management believes its estimates and assumptions are reasonable, actual results may differ materially from those estimates.

The estimate of the Company’s oil and natural gas reserves, which is used to compute depreciation, depletion, amortization and

impairment of oil and gas properties, is the most significant of the estimates and assumptions that affect these reported results.

Financial Statements .

In the opinion of management, the accompanying unaudited consolidated financial statements contain all adjustments

(consisting only of normal recurring accruals) necessary to present fairly the financial position of the Company as of December 31, 2023,

and the results of its operations and cash flows for the interim periods ended December 31, 2023 and 2022.

The consolidated financial

statements as of December 31, 2023 and for the three and nine month periods ended December 31, 2023 and 2022 are unaudited.

The consolidated

balance sheet as of March 31, 2023 was derived from the audited balance sheet filed in the Company’s 2023 annual report on Form

10-K filed with the Securities and Exchange Commission (“SEC”).

The results of operations for the periods presented are not

necessarily indicative of the results to be expected for a full year.

The accounting policies followed by the Company are set forth in

more detail in Note 2 of the “Notes to Consolidated Financial Statements” in the Form 10-K.

Certain information and footnote

disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United

States of America have been condensed or omitted in this Form 10-Q pursuant to the rules and regulations of the SEC.

However, the disclosures

herein are adequate to make the information presented not misleading.

It is suggested that these financial statements be read in conjunction

with the financial statements and notes thereto included in the Form 10-K.

(consisting only of normal recurring accruals) necessary to present fairly the financial position of the Company as of June 30, 2024,

and the results of its operations and cash flows for the interim periods ended June 30, 2024 and 2023.

The consolidated financial statements

as of June 30, 2024 and for the three-month periods ended June 30, 2024 and 2023 are unaudited.

The consolidated balance sheet as of

March 31, 2024 was derived from the audited balance sheet filed in the Company’s 2024 annual report on Form 10-K filed with the

Securities and Exchange Commission (“SEC”).

The results of operations for the periods presented are not necessarily indicative

of the results to be expected for a full year.

The accounting policies followed by the Company are set forth in more detail in Note 2

of the “Notes to Consolidated Financial Statements” in the Form 10-K.

Certain information and footnote disclosures normally

included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America

have been condensed or omitted in this Form 10-Q pursuant to the rules and regulations of the SEC.

However, the disclosures herein are

adequate to make the information presented not misleading.

It is suggested that these consolidated financial statements be read in conjunction

with the consolidated financial statements and notes thereto included in the Form 10-K.

Investments .

The Company accounts for investments of less than 3% of any limited liability companies at cost .

The Company has no control of the

limited liability companies.

The cost of the investment is recorded as an asset on the consolidated balance sheets and when income from

the investment is received, it is immediately recognized on the consolidated statements of operations.

Reclassifications .

Certain amounts in prior periods’ consolidated financial statements have been reclassified to conform with the current period’s

presentation.

These reclassifications had no effect on previously reported results of operations, retained earnings or net cash flows.

The Company accounts for investments of less than 3% in limited liability companies at cost.

The Company has no control of the limited

liability companies.

The cost of the investment is recorded as an asset on the consolidated balance sheets and when income from the investment

is received, it is immediately recognized on the consolidated statements of operations.

Asset Retirement Obligations

8 unchanged sentences

oil and natural gas properties.

The ARO is included in the consolidated balance sheets with the current portion being included in the

The ARO is included on the consolidated balance sheets with the current portion being included in the

accounts payable and other accrued expenses.

following table provides a rollforward of the AROs for the first nine months of fiscal 2024:

of Rollforward of Asset Retirement Obligations

Carrying amount of asset retirement obligations as

of April 1, 2023

following table provides a rollforward of the AROs for the first three months of fiscal 2025:

Schedule of Rollforward of Asset Retirement Obligations

Carrying amount of asset retirement obligations as of April 1, 2024

Liabilities incurred

1 unchanged sentence

Accretion expense

Carrying amount of asset retirement obligations as of December 31, 2023

Carrying amount of asset retirement obligations as of June 30, 2024

Current portion

Non-Current asset retirement

Stock-based Compensation

Company recognized stock-based compensation expense of $ 58,847 and $ 41,460 in general and administrative expense in the Consolidated

Statements of Operations for the three months ended December 31, 2023 and 2022, respectively.

Stock-based compensation expense recognized

for the nine months ended December 31, 2023 and 2022 was $ 172,670 and $ 101,462 , respectively.

The total cost related to non-vested awards

not yet recognized at December 31, 2023 totals $ 559,490 which is expected to be recognized over a weighted average of 2.39 years.

the nine months ended December 31, 2023, the Compensation Committee of the Board of Directors approved and the Company granted 32,000

stock options exercisable at $ 12.68 per share with an estimated fair value of $ 279,360 .

During the nine months ended December 31, 2022,

the Compensation Committee of the Board of Directors approved and the Company granted 31,000 stock options exercisable at $ 18.05 per

share with an estimated fair value of $ 385,640 .

These options are exercisable at a price not less than the fair market value of the stock

at the date of grant, have an exercise period of ten years and generally vest over four years .

in the following table is a summary of the grant-date fair value of stock options granted and the related assumptions used in the Binomial

models for stock options granted during the nine months ended December 31, 2023 and 2022.

All such amounts represent the weighted average

of Grant-date Fair Value of Stock Options Granted and Assumptions Used Binominal Models

Nine Months Ended

Grant-date fair value

Volatility factor

Dividend yield

Risk-free interest rate

Expected term (in years)

following table is a summary of activity of stock options for the nine months ended December 31, 2023:

of Activity of Stock Options

Contract Life in Years

Outstanding at April 1, 2023

Outstanding at December 31, 2023

Vested at December 31, 2023

Exercisable at December 31, 2023

the nine months ended December 31, 2023, stock options covering 500 shares were exercised with a total intrinsic value of $ 2,416 .

Company received proceeds of $ 2,962 from these exercises.

During the nine months ended December 31, 2022, stock options covering 5,000

shares were exercised with a total intrinsic value of $ 47,575 .

The Company received proceeds of $ 16,700 from these exercises.

were no stock options forfeited or expired during the nine months ended December 31, 2023 and 2022.

No forfeiture rate is assumed for

stock options granted to directors or employees due to the forfeiture rate history of these types of awards.

options at December 31, 2023 expire between August 2024 and April 2033 and have exercise prices ranging from $ 3.34 to $ 18.05 .

Non-Current asset retirement obligation

Long Term Debt

13 unchanged sentences

The unused commitment fee is payable quarterly in arrears on the last day of each calendar quarter.

As of December

As of June 30,

2024, there was $ 1,500,000 available for borrowing by the Company on the facility.

11 unchanged sentences

Expense) of 2.00 to 1.00 for each quarter.

addition, this Agreement prohibits the Company from paying cash dividends on its common stock without written permission of WTNB.

Company obtained written permission from WTNB prior to declaring the special dividend on April 10, 2023 as discussed in Note 10.

Agreement does not permit the Company to enter into hedge agreements covering crude oil and natural gas prices without prior WTNB approval.

was no balance outstanding on the line of credit as of December 31, 2023.

addition, this Agreement prohibits the Company from paying cash dividends on its common stock without prior written permission of WTNB.

The Company obtained written permission from WTNB prior to declaring the regular annual dividend on April 30, 2024 as discussed in Note

The Agreement does not permit the Company to enter into hedge agreements covering crude oil and natural gas prices without prior

WTNB approval.

was no balance outstanding on the credit facility as of June 30, 2024.

Stock-based Compensation

Company recognized compensation expense of $ 52,439 and $ 54,975 related to vesting stock options in general and administrative expense

in the Consolidated Statements of Operations for the first quarter of fiscal 2025 and 2024, respectively.

The total cost related to non-vested

awards not yet recognized at June 30, 2024 totals $ 433,373 , which is expected to be recognized over a weighted average of 2.12 years.

the three months ended June 30, 2024, no stock options were granted.

During the three months ended June 30, 2023, the Compensation Committee

of the Board of Directors approved and the Company granted 32,000 stock options exercisable at $ 12.68 per share with an estimated fair

value of $ 279,360 .

These options are exercisable at a price not less than the fair market value of the stock at the date of grant, have

an exercise period of ten years and generally vest over four years .

in the following table is a summary of the grant-date fair value of stock options granted and the related assumptions used in the Binomial

models for stock options granted during the three months ended June 30, 2024 and 2023.

All such amounts represent the weighted average

of Grant-date Fair Value of Stock Options Granted and Assumptions Used Binominal Models

Three Months Ended

Grant-date fair value

Volatility factor

Dividend yield

Risk-free interest rate

Expected term (in years)

following table is a summary of stock options activity for the three months ended June 30, 2024:

Summary of Activity of Stock Options

Number of Shares

Weighted Average Exercise Price Per Share

Weighted Aggregate Average Remaining Contract Life

Intrinsic Value

Outstanding at April 1, 2024

Forfeited or Expired

Outstanding at June 30, 2024

Vested at June 30, 2024

Exercisable at June 30, 2024

the three months ended June 30, 2024, stock options covering 12,367 shares were exercised with a total intrinsic value of $ 92,316 .

Company received proceeds of $ 77,641 from these exercises.

During the three months ended June 30, 2023, stock options covering 500 shares

were exercised with a total intrinsic value of $ 2,416 .

The Company received proceeds of $ 2,962 from these exercises.

forfeiture rate is assumed for stock options granted to directors or employees due to the forfeiture rate history for these types of

During the three months ended June 30, 2024, 1,875 unvested stock options were forfeited due to the resignation of an employee.

During the three months ended June 30, 2023, there were no stock options forfeited or expired.

options at June 30, 2024 expire between September 2028 and April 2033 and have exercise prices ranging from $ 3.34 to $ 18.05 .

Company leases approximately 4,160 rentable square feet of office space from an unaffiliated third party for our corporate office located

in Midland, Texas.

This includes 1,112 square feet of office space shared with and paid by our principal shareholder.

The lease does not

include an option to renew and is a 36 -month lease that was to expire in May 2021.

In June 2020, in exchange for a reduction in rent

for the months of June and July 2020, the Company agreed to a 2-month extension to its current lease agreement at the regular monthly

rate extending its current lease expiration date to July 2021 .

In June 2021, the Company agreed to extend its current lease at a flat

(unescalated) rate for 36 months .

This includes 1,112 square feet of office space shared with and reimbursed by our majority shareholder.

does not include an option to renew and is a 36-month lease that was to expire in May 2021.

In June 2020, in exchange for a reduction

in rent for the months of June and July 2020, the Company agreed to a 2-month extension to its current lease agreement at the regular

monthly rate extending its current lease expiration date to July 2021.

In June 2021, the Company agreed to extend its current lease at

a flat (unescalated) rate for 36 months.

In June 2024, the Company agreed to extend its lease at a flat (unescalated) rate for another

The amended lease now expires on July 31, 2027 .

2 unchanged sentences

lease liability, current, and operating lease liability, long-term on the consolidated balance sheets.

lease right-of-use assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent

its obligation to make lease payments arising from the lease.

Operating lease assets and liabilities are recognized at the commencement

date based on the present value of lease payments over the lease term.

As the Company’s lease does not provide an implicit rate,

the Company uses the incremental borrowing rate based on the information available at commencement date in determining the present value

of lease payments.

The incremental borrowing rate used at adoption was 3.75 %.

Significant judgement is required when determining the

incremental borrowing rate.

Rent expense for lease payments is recognized on a straight-line basis over the lease term.

lease right-of-use assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities

represent its obligation to make lease payments arising from the lease.

Operating lease assets and liabilities are recognized at the

commencement date based on the present value of lease payments over the lease term.

As the Company’s lease does not provide an

implicit rate, the Company uses the incremental borrowing rate based on the information available at commencement date in

determining the present value of lease payments.

The incremental borrowing rate used at adoption of the renewal was 9 %.

Significant judgement is required when determining the incremental borrowing rate.

Rent expense for lease payments is recognized on

a straight-line basis over the lease term.

balance sheets classification of lease assets and liabilities was as follows:

of Operating Lease Assets and Liabilities

Operating lease

right-of-use asset, beginning balance

June 30, 2024

Operating lease right-of-use asset, beginning balance

Current period amortization

operating lease right-of-use asset

Operating lease liability,

lease liability, long term

lease liabilities

minimum lease payments as of December 31, 2023 under non-cancellable operating leases are as follows:

of Future Minimum Lease Payments

Lease extension

Total operating lease right-of-use asset

Operating lease liability, current

Operating lease liability, long term

Total lease liabilities

minimum lease payments as of June 30, 2024 under non-cancellable operating leases are as follows:

Schedule of Future Minimum Lease Payments

Lease Obligation

Fiscal Year Ended March 31, 2025

Fiscal Year Ended March 31, 2026

Fiscal Year Ended March 31, 2027

Fiscal Year Ended March 31, 2028

Total lease payments

1 unchanged sentence

Operating lease liability

operating lease

liability, current

Operating lease liability,

cash paid for our operating lease for the nine months ended December 31, 2023 and 2022 was $ 32,001 .

Rent expense, less sublease income

of $ 11,679 is included in general and administrative expenses.

operating lease liability, current

Operating lease liability, long term

cash paid for our operating lease for the three months ended June 30, 2024 and 2023 was $ 10,667 .

Rent expense, less sublease income of

$ 3,893 is included in general and administrative expenses.

August 16, 2022, President Biden signed into law the Inflation Reduction Act of 2022 (“IRA 2022”).

6 unchanged sentences

The IRA 2022 did not impact the Company’s current year tax provision or the Company’s financial statements.

income tax provision consists of the following for the nine months ended December 31, 2023 and 2022:

income tax provision consists of the following for the three months ended June 30, 2024 and 2023:

of Income Tax Provision

Nine Months Ended

Three Months Ended

Current income tax expense:

Total current income tax

Deferred income tax expense:

Total current income tax expense

Deferred income tax expense:

Total deferred income tax expense

Total income tax expense:

income tax for the nine months ended December 31, 2023 was $ 319,848 .

There was no federal income tax expense for the nine months ended

December 31, 2022 because the Company was in a net deferred tax asset position.

reconciliation of the provision for income taxes to income taxes computed using the federal statutory rate for the nine months ended

December 31 follows:

of Reconciliation of Provision for Income Taxes

Tax expense at federal statutory rate ( 1 )

Statutory depletion carryforward

Change in valuation allowance

Permanent differences

State income expense

Total income tax

income tax for the three months ended June 30, 2024 was $ 86,520 .

Federal income tax for the three months ended June 30, 2023 was $ 88,683 .

reconciliation of the provision for income taxes to income taxes computed using the federal statutory rate for the three months ended

June 30 follows:

Schedule of Reconciliation of Provision for Income Taxes

Income tax expense

Effective income tax rate (1)

federal statutory rate was 21 % for nine months ended December 31, 2023 and 2022.

federal statutory rate was 21 % for three months ended June 30, 2024 and 2023.

Total income tax expense from continuing operations for the three months ended June 30, 2024 and 2023 differed from amounts computed by

applying the U.S.

federal statutory tax rate to pre-tax income primarily due to state income taxes, net of federal benefit, and the impact

of permanent differences between book and taxable income.

Related Party Transactions

1 unchanged sentence

paid on behalf of the principal stockholder.

The total billed to and reimbursed by the stockholder for the three months ended December

The total billed to and reimbursed by the stockholder for the quarters ended June 30, 2024

and 2023 was $ 4,038 and $ 9,382 , respectively.

The total billed to and reimbursed by the stockholder for the nine months ended

December 31, 2023 and 2022 was $ 21,619 and $ 35,333 , respectively.

The principal stockholder pays for his share of the lease amount for

the shared office space directly to the lessor.

Amounts paid by the principal stockholder directly to the lessor for the three months

ending December 31, 2023 and 2022 were $ 3,893 .

Amounts paid by the principal stockholder directly to the lessor for the nine months ending

December 31, 2023 and 2022 were $ 11,679 .

The principal stockholder pays for his share of the lease amount for the shared office

space directly to the lessor.

Amounts paid by the principal stockholder directly to the lessor for the three months ending June 30, 2024

and 2023 were $ 3,893 .

Income Per Common Share

following is a reconciliation of the number of shares used in the calculation of basic and diluted net income per share for the three

and nine month periods ended December 31, 2023 and 2022:

of Reconciliation of Basic and Diluted Net Income (loss) Per Share

Three Months Ended

Nine Months Ended

following is a reconciliation of the number of shares used in the calculation of basic and diluted net income per share for the three-month

periods ended June 30, 2024 and 2023.

Schedule of Reconciliation of Basic and Diluted Net Income (loss) Per Share

Shares outstanding:

Weighted avg.

shares outstanding – basic

Effect of assumed exercise of dilutive stock options

Weighted avg.

shares outstanding – dilutive

Weighted average common shares outstanding – basic

Effect of the assumed exercise of dilutive stock options

Weighted average common shares outstanding – dilutive

Income per common share:

the three and nine months ended December 31, 2023, 63,000 shares relating to stock options were excluded from the computation of diluted

the three months ended June 30, 2024, 61,125 shares relating to stock options were excluded from the computation of diluted net income

because their inclusion would be anti-dilutive.

Anti-dilutive stock options have a weighted average exercise price of $ 15.34 at June

For the three months ended June 30, 2023, 63,000 shares relating to stock options were excluded from the computation of diluted

net income because their inclusion would be anti-dilutive.

Anti-dilutive stock options have a weighted average exercise price of $ 15.32

at December 31, 2023.

For the three and nine months ended December 31, 2022, 31,000 shares relating to stock options were excluded from

the computation of diluted net income because their inclusion would be anti-dilutive.

Anti-dilutive stock options have a weighted average

exercise price of $ 18.05 at December 31, 2022.

at June 30, 2023.

Stockholders’ Equity

March 2023, the Board of Directors authorized the use of up to $ 1,000,000 to repurchase shares of the Company’s common stock, par

April 2024, the Board of Directors authorized the use of up to $ 1,000,000 to repurchase shares of the Company’s common stock, par

value $ 0.50 , for the treasury account.

6 unchanged sentences

Repurchases may also be made from time-to-time in connection

with the settlement of our share-based compensation awards.

with the settlement our share-based compensation awards.

Repurchases will be funded from cash flow.

4 unchanged sentences

in excess of an annual limit of $1,000,000 after December 31, 2022 .

the nine months ended December 31, 2023, the Company repurchased 37,161 shares for the treasury at an aggregate cost of $ 455,133 .

the nine months ended December 31, 2022, the Company repurchased 12,416 shares for the treasury at an aggregate cost of $ 168,260 .

Subsequently,

in January 2024, the Company repurchased 1,501 shares for the treasury at an aggregate cost of $ 15,018 .

April 10, 2023, the Board of Directors declared a special dividend of $ 0.10 per common share.

The Company paid the special dividend of

$ 213,600 on May 15, 2023 to the stockholders of record at the close of business on May 1, 2023.

The Company can provide no assurance

that dividends will be declared in the future or as to the amount of any future dividend.

the three months ended June 30, 2024, the Company repurchased 13,766 shares for the treasury account at an aggregate cost of $ 188,637 ,

an average price of $ 13.70 per share.

During the three months ended June 30, 2023, there were no shares of common stock repurchased for

the treasury account.

Subsequently, in July 2024, the Company repurchased 4,557 shares for the treasury at an aggregate cost of $ 53,684 .

April 30, 2024, the Board of Directors declared a regular annual dividend of $ 0.10 per common share.

The Company paid the dividend of

$ 209,000 on June 4, 2024 to the stockholders of record at the close of business on May 21, 2024.

On April 10, 2023, the Board of Directors

declared a special dividend of $ 0.10 per common share.

The Company paid the special dividend of $ 213,600 on May 15, 2023 to the stockholders

of record at the close of business on May 1, 2023.

The Company can provide no assurance that dividends will be declared in the future

or as to the amount of any future dividend.

declared by the Board and stock repurchased during the period are presented in the Company’s consolidated statements of changes

5 unchanged sentences

Subsequent Events

February 2024, Mexco expended approximately $ 244,000 to participate in the drilling of six horizontal wells in the Bone Spring Sand formation

of the Delaware Basin in Lea County, New Mexico.

Company completed a review and analysis of all events that occurred after the consolidated balance sheet date to determine if any such

1 unchanged sentence

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1. Financial Statements