What changed in this filing

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Item 1. Financial Statements

2026-02-10 compared with 2025-11-12 · 202 added, 211 removed, 292 unchanged (59% of the section changed)

2 unchanged sentences

BALANCE SHEETS

September 30,

Current assets

Cash and cash

Cash and cash equivalents

Accounts receivable:

1 unchanged sentence

Prepaid costs and expenses

Prepaid drilling

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

( 38,639,712 )

( 36,637,530 )

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

Accounts payable and accrued expenses

Income tax payable

lease liability, current

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

1 unchanged sentence

Stockholders’ equity

Preferred stock - $ 1.00

Preferred stock - $ 1.00 par value;

10,000,000 shares authorized;

Common stock - $ 0.50

none outstanding

Common stock - $ 0.50 par value;

40,000,000 shares authorized;

2,239,283 shares issued;

and, 2,046,000

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

and, 2,046,000 shares outstanding as of

December 31, 2025 and March 31, 2025, respectively

Additional paid-in capital

Retained earnings

stock, at cost ( 193,283 shares)

Treasury stock, at cost ( 193,283 shares)

( 1,878,746 )

Total stockholders’

liabilities and stockholders’ equity

Total stockholders’ equity

Total liabilities and stockholders’ equity

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

2 unchanged sentences

Three Months Ended

Six Months Ended

September 30,

Operating revenues:

Nine Months Ended

Operating revenue:

Natural gas sales

1 unchanged sentence

Operating expenses:

Accretion of asset retirement

Depreciation, depletion,

and amortization

and administrative

operating expenses

Accretion of asset retirement obligation

Depreciation, depletion, and amortization

General and administrative

Total operating expenses

Operating income

1 unchanged sentence

Interest income

other income (expense)

Interest expense

Net other income

Income before provision for income taxes

Provision for income taxes

Provision for (benefit from) for income taxes

Income per common share:

4 unchanged sentences

STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY

Stock Par Value

Paid-In Capital

Stockholders’ Equity

Common Stock Par Value

Retained Earnings

Treasury Stock

Stockholders’

Balance at April 1, 2025

7 unchanged sentences

$ ( 1,878,746 )

Stock Par Value

Paid-In Capital

Stockholders’ Equity

Stock based compensation

Balance at December 31, 2025

$ ( 1,878,746 )

Common Stock Par Value

Retained Earnings

Treasury Stock

Stockholders’

Balance at April 1, 2024

1 unchanged sentence

Dividends paid

Issuance of stock through

options exercised

Issuance of stock through options exercised

Purchase of stock

2 unchanged sentences

$ ( 1,364,167 )

Purchase of stock

3 unchanged sentences

$ ( 1,878,746 )

Stock based compensation

Balance at December 31, 2024

$ ( 1,878,746 )

SHARE ACTIVITY

1 unchanged sentence

Balance at April 1, 2025

Balance at September 30, 2025

Balance at December 31, 2025

Common stock shares, held in treasury:

Balance at April 1, 2025

Balance at September

Common stock shares, outstanding

at September 30, 2025

Balance at Dec.

Common stock shares, outstanding at December 31, 2025

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

1 unchanged sentence

STATEMENTS OF CASH FLOWS

the Six Months Ended September 30,

the Nine Months Ended December 31,

Cash flows from operating activities:

Adjustments to reconcile

net income to net cash provided by operating activities:

Deferred income tax

(benefit) expense

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

Deferred income tax benefit

Stock-based compensation

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

Depreciation, depletion and amortization

Accretion of asset retirement obligations

Amortization of debt issuance costs

Changes in operating assets and liabilities:

Decrease (increase) in accounts receivable

Decrease (increase) in right-of-use asset

Decrease in prepaid expenses

(Decrease) increase in accounts payable and accrued expenses

Settlement of asset retirement obligations

(Decrease) increase in income taxes payable

(Decrease) increase in operating lease liability

Net cash provided by operating activities

Cash flows from investing activities:

Additions to oil and

gas properties

Additions to oil and gas properties

( 1,791,507 )

Investments in limited

liability companies at cost

from sale of oil and gas properties and equipment

Net cash used in investing

( 3,072,589 )

Investment in limited liability companies at cost

Proceeds from sale of oil and gas properties and equipment

Net cash used in investing activities

( 2,212,547 )

( 3,670,019 )

Cash flows from financing activities:

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

Proceeds from exercise of stock options

Proceeds from long-term debt

Reduction of long-term debt

Dividends paid

Acquisition of treasury stock

Net cash used in financing activities

Net increase (decrease) in cash and cash equivalents

( 1,563,479 )

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

Accrued capital expenditures

included in accounts payable

Cash paid for income taxes

Accrued capital expenditures included in accounts payable

Non-cash investing and financing activities:

26 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 September 30,

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

(consisting only of normal recurring accruals) necessary to present fairly the financial position of the Company as of December 31, 2025,

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

statements as of December 31, 2025 and for the three and nine month periods ended December 31, 2025 and 2024 are unaudited.

The consolidated

12 unchanged sentences

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

and Gas Properties .

The Company uses the full cost method of accounting for its oil and natural gas properties.

and Natural Gas Properties .

The Company uses the full cost method of accounting for oil and natural gas properties.

Under this method,

22 unchanged sentences

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

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

31, 2025 and 2024.

Investments .

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

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

The Company has no control of the

6 unchanged sentences

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

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.

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

5 unchanged sentences

and site restoration on oil and gas properties.

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

The ARO is included in 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 six months of fiscal 2026:

following table provides a rollforward of the AROs for the first nine 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 September 30,

Carrying amount of asset retirement obligations as of December 31, 2025

Current portion

Non-Current asset retirement

Non-Current asset retirement obligation

Stock-based Compensation

Company recognized stock-based compensation expense of $ 39,880 and $ 51,630 in general and administrative expense in the Consolidated

Statements of Operations for the three months ended December 31, 2025 and 2024, respectively.

Stock-based compensation expense recognized

for the nine months ended December 31, 2025 and 2024 was $ 134,121 and $ 155,699 , respectively.

The total cost related to non-vested awards

not yet recognized at December 31, 2025 totals $ 146,052 which is expected to be recognized over a weighted average of 1.07 years.

the nine months ended December 31, 2025 and 2024, no stock options were granted.

following table is a summary of activity of stock options for the nine months ended December 31, 2025:

Schedule of Activity of Stock Options

Number of Shares

Weighted Average Exercise Price

Weighted Average Remaining Contract Life in Years

Intrinsic Value

Outstanding at April 1, 2025

Forfeited or Expired

Outstanding at December 31, 2025

Vested at December 31, 2025

Exercisable at December 31, 2025

the nine months ended December 31, 2025, there were no stock options exercised.

During the nine months ended December 31, 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 nine months ended December 31, 2025.

During the nine months ended December

31, 2024, 1,875 unvested stock options and 625 vested stock options were forfeited due to the resignation of an employee.

options at December 31, 2025 expire between September 2028 and April 2033 and have exercise prices ranging from $ 3.34 to $ 18.05 .

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 September

As of December

31, 2025, there was $ 1,500,000 available for borrowing by the Company on the facility.

3 unchanged sentences

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

all of the Company’s oil and gas properties.

Amounts borrowed under the Agreement are collateralized by the common stock

of the Company’s wholly owned subsidiaries and substantially all of the Company’s oil and gas properties.

Agreement contains customary covenants for credit facilities of this type including limitations on change in control, disposition of

8 unchanged sentences

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 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

Average Exercise Price

Average Remaining Contract Life in Years

Outstanding at April 1, 2025

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 .

There was no balance outstanding on the credit facilty as of December

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

14 unchanged sentences

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.

The incremental borrowing rate used at adoption 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.

1 unchanged sentence

Schedule of Operating Lease Assets and Liabilities

Operating lease

right-of-use asset, beginning balance

December 31, 2025

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 September 30, 2025 under non-cancellable operating leases are as follows:

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 December 31, 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,

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

operating lease liability, current

Operating lease liability, long term

cash paid for our operating lease for the nine months ended December 31, 2025 and 2024 was $ 37,609 and $ 35,116 , respectively.

Rent expense,

10 unchanged sentences

financial statements.

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

income tax provision consists of the following for the nine months ended December 31, 2025 and 2024:

Schedule of Income Tax Provision

Six Months Ended

Nine Months Ended

Current income tax expense:

Total current income tax

Deferred income tax (benefit) expense:

deferred income tax (benefit) expense

Total current income tax expense

Deferred income tax benefit:

Total deferred income tax benefit

Total income tax expense:

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

following table summarizes our income tax expense and effective income tax rate for the nine months ended December 31 follows:

Schedule of Reconciliation of Provision for Income Taxes

4 unchanged sentences

Permanent differences

State income expense, net of federal benefit

State income expense (benefit), net of federal benefit

Total income tax

Effective income tax rate

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

(1) The federal statutory

rate was 21 % for nine months ended December 31, 2025 and 2024.

income tax expense from continuing operations for the nine months ended December 31, 2025 and 2024 differed from amounts computed by

applying the U.S.

4 unchanged sentences

paid on behalf of the principal stockholder.

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

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

31, 2025 and 2024 was $ 14,366 and $ 16,174 , 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 total billed to and reimbursed by the stockholder for the nine months ended

December 31, 2025 and 2024 was $ 37,241 and $ 21,462 , respectively.

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

1 unchanged sentence

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.

ending December 31, 2025 and 2024 were $ 2,544 .

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

December 31, 2025 and 2024 were $ 7,631 and $ 9,430 , 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

and six month periods ended September 30, 2025 and 2024.

and nine month periods ended December 31, 2025 and 2024:

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

Three Months Ended

Six Months Ended

September 30,

Nine Months Ended

Shares outstanding:

1 unchanged sentence

shares outstanding – basic

Effect of assumed exercise

of dilutive stock options

Effect of assumed exercise of dilutive stock options

Weighted avg.

shares outstanding –

shares outstanding – dilutive

Income per common share:

the three and six months ended September 30, 2025, 90,206 shares relating to stock options were excluded from the computation of diluted

the three and nine months ended December 31, 2025, 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, 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.

at December 31, 2025.

For the three and nine months ended December 31, 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 December 31, 2024.

Stockholders’ Equity

10 unchanged sentences

Repurchases will be funded from cash flow.

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 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.

of December 31, 2025, the Company’s repurchase program approved in April 2024, had $ 296,784 in remaining funds.

the nine months ended December 31, 2025, there were no shares of common stock repurchased for the treasury account.

During the nine months

ended December 31, 2024, the Company repurchased 57,766 shares for the treasury at an aggregate cost of $ 703,216 , an average price of

$ 12.17 per share.

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

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

4 unchanged sentences

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.

the nine months ended December 31, 2025, the Company incurred approximately $ 626,000 in acquisition costs to acquire various royalty

interests in 92 producing wells in Weld County, Colorado;

Caddo Parish, Louisiana;

Eddy County, New Mexico;

and, Howard, Martin, and

Pecos Counties, Texas.

the nine months ended December 31, 2024, the Company incurred approximately $ 2,000,000 in acquisition costs to acquire various royalty

interests in approximately 700 wells located in Adams, Broomfield and Weld Counties, Colorado;

DeSoto Parish, Louisiana;

Karnes, Live Oak, Reagan, Reeves and Upton Counties, Texas;

Laramie County, Wyoming;

and multiple counties in Nebraska, North

and South Dakota and Montana.

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,

in January 2026, the Company acquired royalty interests in 3 producing wells located in Karnes County, Texas for a purchase price of

This acquisition is effective January 1, 2026.

Subsequent Events

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.

January 2026, the Company initiated the process of establishing a defined contribution retirement plan for eligible employees.

is not expected to have a material impact on the Company’s financial statements.

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