What changed in this filing

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Item 1. Financial Statements

2025-11-12 compared with 2025-08-12 · 289 added, 226 removed, 214 unchanged (71% of the section changed)

2 unchanged sentences

BALANCE SHEETS

September 30,

Current assets

Cash and cash equivalents

Cash and cash

Accounts receivable:

Oil and natural gas sales

Prepaid drilling

Prepaid costs and expenses

Total current assets

Property and equipment, at cost

Oil and gas properties, using the full cost method

Accumulated depreciation, depletion and amortization

Property and equipment,

Oil and gas properties,

using the full cost method

depreciation, depletion and amortization

( 37,975,448 )

( 36,637,530 )

Property and equipment, net

Investments – cost basis

Operating lease, right-of-use asset

Other noncurrent assets

LIABILITIES AND STOCKHOLDERS' EQUITY

Property and equipment,

Investments – cost

Operating lease, right-of-use

noncurrent assets

LIABILITIES AND STOCKHOLDERS’

Current liabilities

Accounts payable and accrued expenses

Accounts payable and accrued

Income tax payable

Operating lease liability, current

lease liability, current

Total current liabilities

Long-term liabilities

Operating lease liability, long-term

Operating lease liability,

Asset retirement obligations

Deferred income tax liabilities

Total long-term liabilities

income tax liabilities

long-term liabilities

Total liabilities

1 unchanged sentence

Stockholders’ equity

Preferred stock - $ 1.00 par value;

Preferred stock - $ 1.00

shares authorized;

none outstanding

Common stock - $ 0.50 par value;

Common stock - $ 0.50

shares authorized;

shares issued;

and, 2,046,000 shares outstanding as of June 30, 2025 and March 31, 2025, respectively

and, 2,046,000

shares outstanding as of September 30, 2025 and March 31, 2025, respectively

Additional paid-in capital

Retained earnings

Treasury stock, at cost ( 193,283 shares)

stock, at cost ( 193,283 shares)

( 1,878,746 )

Total stockholders' equity

Total liabilities and stockholders’ equity

Total stockholders’

liabilities and stockholders’ equity

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

1 unchanged sentence

STATEMENTS OF OPERATIONS

the Three Months Ended June 30,

Operating revenues:

Three Months Ended

Six Months Ended

September 30,

Operating revenues:

Natural gas sales

Total operating revenues

Operating expenses:

of asset retirement obligations

Depreciation,

depletion and amortization

Accretion of asset retirement

Depreciation, depletion,

and amortization

and administrative

1 unchanged sentence

Operating income

Other income (expense):

Other income (expenses):

Interest income

other income (expense)

Income before provision for

Income before provision for income taxes

Provision for income taxes

Income per common share:

Weighted average common

shares outstanding:

Weighted average common shares outstanding:

Dividends declared per share

2 unchanged sentences

STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY

Stockholders’

Stock Par Value

Paid-In Capital

Stockholders’ Equity

Balance at April 1, 2025

4 unchanged sentences

$ ( 1,878,746 )

Stockholders’

Balance at April 1, 2024

Stock-based compensation

Balance at September 30, 2025

$ ( 1,878,746 )

Stock Par Value

Paid-In Capital

Stockholders’ Equity

Balance at April 1, 2024

$ ( 1,175,530 )

7 unchanged sentences

$ ( 1,364,167 )

Purchase of stock

Stock-based compensation

Balance at September 30, 2024

$ ( 1,878,746 )

SHARE ACTIVITY

1 unchanged sentence

Balance at April 1, 2025

Balance at June 30, 2025

Balance at September 30, 2025

Common stock shares, held in treasury:

Balance at April 1, 2025

Balance at June 30, 2025

Common stock shares, outstanding at June 30, 2025

Balance at September

Common stock shares, outstanding

at September 30, 2025

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

1 unchanged sentence

STATEMENTS OF CASH FLOWS

the Three Months Ended June 30,

the Six Months Ended September 30,

Cash flows from operating activities:

Adjustments to reconcile net income to net cash provided by operating

Deferred income tax (benefit) expense

Adjustments to reconcile

net income to net cash provided by operating activities:

Deferred income tax

(benefit) expense

Stock-based compensation

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

Decrease (increase) in right-of-use asset

Increase in accounts payable and accrued expenses

Settlement of asset retirement obligations

Increase in income taxes payable

(Decrease) increase in operating lease liability

Net cash provided by operating activities

Depreciation, depletion

and amortization

Accretion of asset retirement

Amortization of debt

issuance costs

Changes in operating

assets and liabilities:

Decrease in accounts

Decrease (increase)

in right-of-use asset

Decrease in prepaid

(Decrease) increase

in accounts payable and accrued expenses

Settlement of asset

retirement obligations

Decrease in income taxes

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

Additions to oil and

gas properties

( 1,667,027 )

Investments in limited

liability companies at cost

from sale of oil and gas properties and equipment

Net cash used in investing

( 2,066,957 )

Cash flows from financing activities:

Proceeds from exercise of stock options

Dividends paid

Acquisition of treasury stock

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

Proceeds from exercise

of stock options

Acquisition of treasury

cash used in financing activities

Net increase (decrease) in cash and cash

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

Cash paid for income taxes

Accrued capital expenditures included in accounts payable

Cash paid for income

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 Company’s oil and gas interests are operated

All of the Company’s oil and gas interests are

operated by others.

Basis of Presentation and Significant Accounting Policies

13 unchanged sentences

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 June 30, 2025,

and the results of its operations and cash flows for the interim periods ended June 30, 2025 and 2024.

The consolidated financial statements

as of June 30, 2025 and for the three-month periods ended June 30, 2025 and 2024 are unaudited.

The consolidated balance sheet as of

March 31, 2025 was derived from the audited balance sheet filed in the Company’s 2025 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.

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

2025, and the results of its operations and cash flows for the interim periods ended September 30, 2025 and 2024.

The consolidated financial

statements as of September 30, 2025 and for the three and six month periods ended September 30, 2025 and 2024 are unaudited.

The consolidated

balance sheet as of March 31, 2025 was derived from the audited balance sheet filed in the Company’s 2025 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.

and Gas Properties .

15 unchanged sentences

capitalized costs plus estimated future development costs are amortized over total proved reserves.

addition, capitalized costs less accumulated depletion and related deferred income taxes are not allowed to exceed an amount (the

full cost ceiling) equal to the sum of:

1) the present value of estimated future net revenues discounted at ten percent computed in

compliance with SEC guidelines;

addition, capitalized costs less accumulated depletion and related deferred income taxes are not allowed to exceed an amount (the full

cost ceiling) equal to the sum of:

1)the present value of estimated future net revenues discounted at ten percent computed in compliance

with SEC guidelines;

2) plus the cost of properties not being amortized;

3) plus the lower of cost or estimated fair

value of unproven properties included in the costs being amortized;

4) less income tax effects related to differences between the

book and tax basis of the properties.

impairments on oil and natural gas properties as a result of the ceiling test were recorded for the three months ended

June 30, 2025 and 2024.

3) plus the lower of cost or estimated fair value of unproven

properties included in the costs being amortized;

4) less income tax effects related to differences between the book and tax basis of

the properties.

No impairments on oil and natural gas properties as a result of the ceiling test were recorded for the three and six months ended September

30, 2025 and 2024.

Investments .

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.

The Company evaluates investments for an impairment

whenever events or changes in circumstances indicate that the carrying amount of an investment may not be recoverable.

Indicators of

impairment may include, but are not limited to, sustained declines in market value, investee financial condition and operating performance,

industry or economic trends, and other relevant factors.

The Company accounts for investments of less than 3% in 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.

The Company evaluates investments

for an impairment whenever events or changes in circumstances indicate that the carrying amount of an investment may not be recoverable.

Indicators of impairment may include, but are not limited to, sustained declines in market value, investee financial condition and operating

performance, industry or economic trends, and other relevant factors.

Reclassifications .

2 unchanged sentences

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

Based on the Company’s organizational structure, the Company has one operating segment, which is crude oil and natural gas

development, exploration and production.

In addition, the Company has a single, company-wide management team that allocates

capital resources to maximize profitability and measures financial performance as a single enterprise.

Based on the Company’s organizational structure, the Company has one operating segment, which is crude oil and natural gas development,

exploration and production.

In addition, the Company has a single, company-wide management team that allocates capital resources to maximize

profitability and measures financial performance as a single enterprise.

Asset Retirement Obligations

3 unchanged sentences

included in the accounts payable and other accrued expenses.

following table provides a rollforward of the AROs for the first three months of fiscal 2026:

following table provides a rollforward of the AROs for the first six months of fiscal 2026:

Schedule of Rollforward of Asset Retirement Obligations

Carrying amount of asset retirement obligations as of April 1, 2025

Carrying amount of asset retirement obligations as

of April 1, 2025

Liabilities incurred

1 unchanged sentence

Accretion expense

Carrying amount of asset retirement obligations as of June 30, 2025

Carrying amount of asset retirement obligations as of September 30,

Current portion

Non-Current asset retirement obligation

Non-Current asset retirement

Long Term Debt

14 unchanged sentences

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

As of June 30,

As of September

30, 2025, there was $ 1,500,000 available for borrowing by the Company on the facility.

2 unchanged sentences

second amendment to the Agreement, the Company paid a loan origination fee of $ 9,000 plus legal and recording expenses totaling $ 12,950 ,

which are amortized over the life of the credit facility.

which were deferred over the life of the credit facility.

borrowed under the Agreement are collateralized by the common stock of the Company’s wholly owned subsidiaries and substantially

6 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 prior written permission of WTNB.

The Company obtained written permission from WTNB prior to declaring the regular annual dividend on May 13, 2025, 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, 2025.

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 regular annual dividend on May 13, 2025 as discussed in Note 10.

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

September 17, 2025, WTNB reaffirmed the borrowing base at $ 1,500,000 .

There was no balance outstanding on the credit facility as of September

Stock-based Compensation

Company recognized compensation expense of $ 51,208 and $ 52,439 related to vesting stock options in general and administrative expense

in the Consolidated Statements of Operations for the first quarter of fiscal 2026 and 2025, respectively.

The total cost related to non-vested

awards not yet recognized at June 30, 2025 totals $ 228,965 , which is expected to be recognized over a weighted average of 1.19 years.

the three months ended June 30, 2025 and 2024, no stock options were granted.

the three months ended June 30, 2025, there were no stock options exercised.

During the three months ended June 30, 2024, stock options

covering 12,367 shares were exercised with a total intrinsic value of $ 92,316 .

The Company received proceeds of $ 77,641 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, 2025, there were no stock options forfeited or expired.

During the three months ended

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

following table is a summary of stock options activity for the three months ended June 30, 2025:

Company recognized stock-based compensation expense of $ 43,033 and $ 51,630 in general and administrative expense in the Consolidated

Statements of Operations for the three months ended September 30, 2025 and 2024, respectively.

Stock-based compensation expense recognized

for the six months ended September 30, 2025 and 2024 was $ 94,241 and $ 104,069 , respectively.

The total cost related to non-vested awards

not yet recognized at September 30, 2025 totals $ 185,931 which is expected to be recognized over a weighted average of 1.32 years.

the six months ended September 30, 2025 and 2024, no stock options were granted.

following table is a summary of activity of stock options for the six months ended September 30, 2025:

Schedule of Activity of Stock Options

Exercise Price

Average Remaining

Contract Life

Average Exercise Price

Average Remaining Contract Life in Years

Outstanding at April 1, 2025

Forfeited or Expired

Outstanding at June 30, 2025

Vested at June 30, 2025

Exercisable at June 30, 2025

options at June 30, 2025 expire between September 2028 and April 2033 and have exercise prices ranging from $ 3.34 to $ 18.05 .

Outstanding at September

Vested at September 30, 2025

Exercisable at September 30, 2025

the six months ended September 30, 2025, there were no stock options exercised.

During the six months ended September 30, 2024, stock

options covering 12,367 shares were exercised with a total intrinsic value of $ 92,316 .

The Company received proceeds of $ 77,641 from

these exercises.

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

There were no stock options forfeited or expired during the six months ended September 30, 2025.

During the six months ended September

30, 2024, 1,875 unvested stock options and 625 vested stock options were forfeited due to the resignation of an employee.

options at September 30, 2025 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

2 unchanged sentences

In June 2024, the

Company agreed to extend its lease at a flat (unescalated) rate for another 36 months.

Company agreed to re-extend its lease at a flat (unescalated) rate for another 36 months.

The amended lease now expires on July 31, 2027 .

1 unchanged sentence

Operating leases are recorded in operating lease right-of-use asset, operating

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

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

11 unchanged sentences

Schedule of Operating Lease Assets and Liabilities

Operating lease right-of-use asset, beginning balance

Operating lease

right-of-use asset, beginning balance

Current period amortization

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, 2025 under non-cancellable operating leases are as follows:

operating lease right-of-use asset

Operating lease liability,

lease liability, long term

lease liabilities

minimum lease payments as of September 30, 2025 under non-cancellable operating leases are as follows:

Schedule of Future Minimum Lease Payments

Lease Obligation

Fiscal Year Ended March 31, 2026

4 unchanged sentences

Operating lease liability

operating lease liability, current

Operating lease liability, long term

cash paid for our operating lease for the three months ended June 30, 2025 and 2024 was $ 12,536

and $ 10,667 ,

respectively.

Rent expense, less sublease income of $ 2,544

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

income tax provision consists of the following for the three months ended June 30, 2025 and 2024:

operating lease

liability, current

Operating lease liability,

cash paid for our operating lease for the six months ended September 30, 2025 and 2024 was $ 25,073 and $ 22,580 , respectively.

Rent expense,

less sublease income of $ 5,088 and $ 6,887 , respectively is included in general and administrative expenses.

July 4, 2025, the “One Big Beautiful Bill” (“OBBB”) was enacted.

The OBBB is a significant piece of legislation

that includes significant changes to federal tax policy, environmental funding, and energy development regulations.

Key provisions relevant

to the crude oil and natural gas industry include (i) tax policy changes that extend and expand components of the 2017 Tax Cuts and Jobs

Act and (ii) the introduction of fee and royalty-related provisions aimed at reducing financial and administrative burdens on domestic

energy producers.

The Company is currently evaluating the full impact of the OBBB on the Company’s condensed consolidated balance

sheets, condensed consolidated statements of operations and condensed consolidated statements of cash flows in its condensed consolidated

financial statements.

income tax provision consists of the following for the six months ended September 30, 2025 and 2024:

Schedule of Income Tax Provision

Three Months Ended

Six Months Ended

Current income tax expense:

Total current income tax expense

Total current income tax

Deferred income tax (benefit) expense:

Total deferred income tax (benefit) expense

deferred income tax (benefit) expense

Total income tax expense:

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

June 30 follows:

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

Schedule of Reconciliation of Provision for Income Taxes

Tax expense at federal statutory rate (1)

Tax expense at

federal statutory rate (1)

Statutory depletion carryforward

2 unchanged sentences

State income expense, net of federal benefit

Total income tax

Effective income tax rate

federal statutory rate was 21 % for three months ended June 30, 2025 and 2024.

income tax expense from continuing operations for the three months ended June 30, 2025 and 2024 differed from amounts computed by applying

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.

On July 4, 2025, the “One Big Beautiful Bill” (“OBBB”) was enacted.

The OBBB is a significant piece of legislation that includes significant

changes to federal tax policy, environmental funding, and energy development regulations.

Key provisions relevant to the crude oil and

natural gas industry include (i) tax policy changes that extend and expand components of the 2017 Tax Cuts and Jobs Act and (ii) the introduction

of fee and royalty-related provisions aimed at reducing financial and administrative burdens on domestic energy producers.

is currently evaluating the full impact of the OBBB on the Company’s condensed consolidated balance sheets, condensed consolidated statements

of operations and condensed consolidated statements of cash flows in its condensed consolidated financial statements.

federal statutory rate was 21 % for six months ended September 30, 2025 and 2024.

income tax expense from continuing operations for the six months ended September 30, 2025 and 2024 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 quarters ended June 30, 2025

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

30, 2025 and 2024 was $ 12,105 and $ 1,250 , 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 June 30, 2025

and 2024 were $ 2,544 and $ 3,893 , respectively.

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

September 30, 2025 and 2024 was $ 22,875 and $ 5,288 , 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 September 30, 2025 and 2024 were $ 2,544 and $ 2,994 , respectively.

Amounts paid by the principal stockholder directly to the lessor

for the six months ending September 30, 2025 and 2024 were $ 5,088 and $ 6,887 , respectively.

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-month

periods ended June 30, 2025 and 2024.

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 six month periods ended September 30, 2025 and 2024.

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

Three Months Ended

Six Months Ended

September 30,

Shares outstanding:

Weighted average common shares outstanding – basic

Effect of the assumed exercise of dilutive stock options

Weighted average common shares outstanding – dilutive

Weighted avg.

shares outstanding – basic

Effect of assumed exercise

of dilutive stock options

Weighted avg.

shares outstanding –

Income per common share:

the three months ended June 30, 2025, 90,206 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 $ 13.09 at June

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

the three and six months ended September 30, 2025, 90,206 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 $ 13.09

at June 30, 2024.

at September 30, 2025.

For the three months ended September 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.

For the six months ended September 30, 2024, 60,500

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 September 30, 2024.

Stockholders’ Equity

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.

This program does not have an expiration date and may be modified, suspended or terminated at

any time by the Board.

Under the repurchase program, shares of common stock may be purchased from time to time through open market purchases

or other transactions.

The amount and timing of repurchases will be subject to the availability of stock, prevailing market conditions,

the trading price of the stock, our financial performance, and other conditions.

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

with the settlement our share-based compensation awards.

April 2024, the Board of Directors (“the Board”) 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.

This program does not have an expiration date and may be modified, suspended,

or terminated at any time by the Board.

Under the repurchase program, shares of common stock may be purchased from time to time through

open market purchases or other transactions.

The amount and timing of repurchases will be subject to the availability of stock, prevailing

market conditions, the trading price of the stock, our financial performance, and other conditions.

Repurchases may also be made from

time-to-time in connection with the settlement of our share-based compensation awards.

Repurchases will be funded from cash flow.

As of June 30, 2025, the Company’s

repurchase program, approved in April 2024, has $ 296,784 in remaining funds.

the three months ended June 30, 2025, there were no shares of common stock repurchased for the treasury account.

During 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.

of September 30, 2025, the Company’s repurchase program, approved in April 2024, has $ 296,784 in remaining funds.

the six months ended September 30, 2025, there were no shares of common stock repurchased for the treasury account.

During the six months

ended September 30, 2024, there were 57,766 shares of common stock repurchased for the treasury account at an aggregate cost of $ 703,216 ,

an average price of $ 12.17 per share.

May 13, 2025, the Board of Directors declared a regular annual of $ 0.10 per common share.

The Company paid the special dividend of $ 204,600

on June 16, 2025 to the stockholders of record at the close of business on June 2, 2025.

On 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.

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 in stockholders’

equity as dividends paid and purchases of treasury stock, respectively.

Dividends paid and stock repurchased during the period are presented

as cash used in financing activities in the Company's consolidated statements of cash flows.

Stock repurchases are included as treasury

stock in the consolidated balance sheets.

The Company paid the regular annual dividend

of $ 204,600 on June 16, 2025 to the stockholders of record at the close of business on June 2, 2025.

On 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.

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

in stockholders’ equity as dividends paid and purchases of treasury stock, respectively.

Dividends paid and stock repurchased during

the period are presented as cash used in financing activities in the Company’s consolidated statements of cash flows.

Stock repurchases

are included as treasury stock in the consolidated balance sheets.

May 2025, the Company acquired royalty (mineral) interests in 2 producing wells operated by Chevron USA and located in Pecos County,

Texas for a purchase price of $ 40,000 .

This acquisition was effective April 1, 2025 and includes acreage for future development.

August 2025, the Company acquired royalty interests in 12 producing wells operated by Diamondback E & P and located in Martin County,

Texas for a purchase price of $ 60,000 and royalty interests in 25 producing wells operated by Chevron USA and located in Weld County,

Colorado for a purchase price of $ 26,000 .

These acquisitions were effective September 1, 2025.

Subsequently,

in October 2025, the Company acquired royalty interests in 3 producing wells operated by Expand Operating and located in Caddo Parish,

Louisiana for a purchase price of $ 31,000 ;

royalty interests in 14 producing wells operated by Diamondback E & P and located

in Martin County, Texas for a purchase price of $ 44,000 ;

royalty interests in 3 producing wells operated by Permian Resources and located

in Eddy County, New Mexico for a purchase price of $ 7,000 ;

and, overriding royalty interest in 4 producing wells operated by Tap Rock

Operating and located in Eddy County, New Mexico for a purchase price of $ 240,000 .

All of these acquisitions are effective November 1,

Subsequent Events

July 2025, Mexco expended approximately $ 53,000 to complete two horizontal wells in the Bone Spring formation of the Delaware Basin in

Lea County, New Mexico.

July 2025, the Company funded the final $ 200,000 toward a $ 2,000,000 commitment for a 2 % equity investment in a limited liability company.

October 2025, the Company expended approximately $ 50,000 to participate with a 2 % working interest in the drilling of an exploratory

well in the Ellenburger Formation of Ward County, Texas.

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

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What changed 10-Q

Item 1. Financial Statements