What changed in this filing

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Item 1. Financial Statements

2025-08-12 compared with 2025-02-07 · 224 added, 269 removed, 216 unchanged (70% of the section changed)

6 unchanged sentences

Oil and natural gas sales

Prepaid costs and expenses

Prepaid drilling

Prepaid costs and expenses

Total current assets

27 unchanged sentences

40,000,000 shares authorized;

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

2,046,000 and 2,091,399 shares outstanding as of December 31, 2024 and March 31, 2024, respectively

2,239,283 shares issued;

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

Additional paid-in capital

Retained earnings

Treasury stock, at cost ( 193,283 and 135,517 shares, respectively)

Treasury stock, at cost ( 193,283 shares)

( 1,878,746 )

5 unchanged sentences

STATEMENTS OF OPERATIONS

Three Months Ended

Nine Months Ended

Operating revenue:

Natural gas sales

Total operating revenues

the Three Months Ended June 30,

Operating revenues:

operating revenues

Operating expenses:

Accretion of asset retirement obligation

Depreciation, depletion, and amortization

General and administrative

Total operating expenses

of asset retirement obligations

Depreciation,

depletion and amortization

and administrative

operating expenses

Operating income

Other income (expenses):

Interest income

Interest expense

Net other income (expense)

Income before provision for income taxes

(Benefit from) provision for income taxes

Income tax expense (benefit):

Total income tax (benefit) expense

Other income (expense):

other income (expense)

Income before provision for

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

Common Stock Par Value

Additional Paid-In Capital

Retained Earnings

Treasury Stock

Total Stockholders’ Equity

Stockholders’

Balance at April 1, 2025

1 unchanged sentence

Dividends paid

Issuance of stock through options exercised

Purchase of stock

Stock based compensation

1 unchanged sentence

$ ( 1,878,746 )

Purchase of stock

Stock based compensation

Balance at September 30, 2024

$ ( 1,878,746 )

Stock based compensation

Balance at December 31, 2024

$ ( 1,878,746 )

Common Stock Par Value

Additional Paid-In Capital

Retained Earnings

Treasury Stock

Total Stockholders’ Equity

Stockholders’

Balance at April 1, 2024

$ ( 1,175,530 )

Dividends paid

Issuance of stock through options exercised

Issuance of stock through

options exercised

Purchase of stock

Stock based compensation

1 unchanged sentence

$ ( 1,364,167 )

Prurchase of stock

Stock based compensation

Balance at September 30, 2023

$ ( 1,364,167 )

$ ( 915,751 )

Stock based compensation

Purchase of stock

Balance at December 31, 2023

$ ( 1,045,627 )

SHARE ACTIVITY

1 unchanged sentence

Balance at April 1, 2025

Balance at December 31, 2024

Balance at June 30, 2025

Common stock shares, held in treasury:

Balance at April 1, 2025

Balance at Dec.

Common stock shares, outstanding

at December 31, 2024

Balance at June 30, 2025

Common stock shares, outstanding at June 30, 2025

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

1 unchanged sentence

STATEMENTS OF CASH FLOWS

the Nine Months Ended December 31,

the Three Months Ended June 30,

Cash flows from operating activities:

6 unchanged sentences

Changes in operating assets and liabilities

(Increase) decrease in accounts receivable

(Increase) decrease in right-of-use asset

Decrease in accounts receivable

Decrease in prepaid expenses

Decrease (increase) in right-of-use asset

Increase in accounts payable and accrued expenses

5 unchanged sentences

Additions to oil and gas properties

( 3,072,589 )

( 1,471,543 )

Investment in limited liability companies at cost

Investments in limited liability companies at cost

Proceeds from sale of oil and gas properties and equipment

Net cash used in investing activities

( 3,670,019 )

( 1,365,030 )

Cash flows from financing activities:

Proceeds from exercise of stock options

Debt issuance costs

Proceeds from long-term debt

Reduction of long-term debt

Dividends paid

1 unchanged sentence

Net cash used in financing activities

Net (decrease) increase in cash and cash equivalents

( 1,563,479 )

Net increase in cash and cash equivalents

Cash and cash equivalents at beginning of period

14 unchanged sentences

Most of the Company’s oil and gas interests are centered in West Texas and Southeastern New Mexico;

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

All of the Company’s oil and gas interests are

operated by others.

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

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 consolidated 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.

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

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, 2024,

and the results of its operations and cash flows for the interim periods ended December 31, 2024 and 2023.

The consolidated financial

statements as of December 31, 2024 and for the three and nine month periods ended December 31, 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 financial statements be read in conjunction

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

Oil and Natural Gas Properties .

The Company uses the full cost method

of accounting for oil and natural gas properties.

Under this method, all costs (direct and indirect) associated with acquisition, exploration,

and development of oil and natural gas properties are capitalized.

Costs capitalized include acquisition costs, geological and geophysical

expenditures, lease rentals on undeveloped properties and costs of drilling and equipping productive and non-productive wells.

costs include directly related overhead costs.

All of the Company’s capitalized costs are subject to amortization.

In 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;

(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.

and Gas Properties .

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

Under this method,

all acquisition, exploration, and development costs are capitalized and amortized on a composite unit of production method based on proved

oil and natural gas reserves.

This includes any internal costs that are directly related to exploration and development activities but

does not include any costs related to production, general corporate overhead or similar activities.

The carrying amount of oil and gas

properties also includes estimated asset retirement costs recorded based on the fair value of the asset retirement obligation (“ARO”)

when incurred.

Sales of oil and natural gas properties, whether or not being amortized currently, are accounted for as adjustments of

capitalized costs, with no gain or loss recognized, unless such adjustments would significantly alter the relationship between capitalized

costs and proved reserves of oil and natural gas.

This includes any sales of properties such as Term Assignments and Assignments, Bill

of Sales and Conveyances.

Depletion of evaluated oil and natural gas properties is computed on the units of production method, whereby

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;

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.

No 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, 2024 and 2023.

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.

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.

Based on the Company’s organizational

structure, the Company has one operating segment, which is crude oil and natural gas development, exploration and production.

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.

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.

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, 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

1 unchanged sentence

and site restoration on oil and gas properties.

The fair value of a liability for an ARO is recorded in the period in which it is incurred,

discounted to its present value using the credit adjusted risk-free interest rate, and a corresponding amount capitalized by increasing

the carrying amount of the related long-lived asset.

The liability is accreted each period until the liability is settled or the well

is sold, at which time the liability is removed.

The related asset retirement cost is capitalized as part of the carrying amount of our

oil and natural gas properties.

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 nine months of fiscal 2025:

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 three months of fiscal 2026:

Schedule of Rollforward of Asset Retirement Obligations

3 unchanged sentences

Accretion expense

Carrying amount of asset retirement obligations as of December 31, 2024

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

Current portion

Non-Current asset retirement obligation

Stock-based Compensation

Company recognized stock-based compensation expense of $ 51,630 and $ 58,847 in general and administrative expense in the Consolidated

Statements of Operations for the three months ended December 31, 2024 and 2023, respectively.

Stock-based compensation expense recognized

for the nine months ended December 31, 2024 and 2023 was $ 155,699 and $ 172,670 , respectively.

The total cost related to non-vested awards

not yet recognized at December 31, 2024 totals $ 330,113 which is expected to be recognized over a weighted average of 1.78 years.

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

During 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 .

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, 2024 and 2023.

All such amounts represent the weighted average

Schedule 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, 2024:

Summary 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, 2024

Forfeited or Expired

Outstanding at December 31, 2024

Vested at December 31, 2024

Exercisable at December 31, 2024

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.

During the nine months ended December 31, 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.

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.

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

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

Long Term Debt

3 unchanged sentences

commitment reduction and a borrowing base to be evaluated annually.

February 28, 2020, the Agreement was amended to increase the credit facility to $ 2,500,000 , extend the maturity date to March 28, 2023

and increase the borrowing base to $ 1,500,000 .

On March 28, 2023, the Agreement was amended to extend the maturity date to March 28,

On February 28, 2020, the Agreement was amended to increase the credit

facility to $ 2,500,000 , extend the maturity date to March 28, 2023 , and increase the borrowing base to $ 1,500,000 .

On March 28, 2023,

the Agreement was amended to extend the maturity date to March 28, 2026 .

the Agreement, interest on the facility accrues at a rate equal to the prime rate as quoted in the Wall Street Journal plus one-half

5 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,

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 were deferred over the life of the credit facility.

which are amortized 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 written permission of WTNB.

Company obtained written permission from WTNB prior to declaring the special dividend on April 30, 2024 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, 2024.

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.

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:

Schedule of Activity of Stock Options

Exercise Price

Average Remaining

Contract Life

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 .

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 702 square feet of office space shared with and paid by our majority shareholder.

This includes 702 square feet of office space shared with and paid by our principal shareholder.

In June 2024, the

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

Company agreed to 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 sheets.

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

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

5 unchanged sentences

of lease payments.

The incremental borrowing rate used at adoption was 9 %.

Significant judgement is required when determining the incremental

borrowing rate.

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.

1 unchanged sentence

Schedule of Operating Lease Assets and Liabilities

December 31, 2024

Operating lease right-of-use asset, beginning balance

5 unchanged sentences

Total lease liabilities

minimum lease payments as of December 31, 2024 under non-cancellable operating leases are as follows:

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

Schedule of Future Minimum Lease Payments

3 unchanged sentences

Fiscal Year Ended March 31, 2028

Total lease payments

3 unchanged sentences

Operating lease liability, long term

cash paid for our operating lease for the nine months ended December 31, 2024 and 2023 was $ 35,116 and $ 32,001 , respectively.

Rent expense,

less sublease income of $ 9,430 is included in general and administrative expenses.

income tax provision consists of the following for the nine months ended December 31, 2024 and 2023:

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:

Schedule of Income Tax Provision

Nine Months Ended

Three Months Ended

Current income tax expense:

3 unchanged sentences

Total income tax expense:

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

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

Tax expense at federal statutory rate (1)

Statutory depletion carryforward

Change in valuation allowance

Permanent differences

State income expense, net of federal benefit

Total income tax

Effective income tax rate (1)

The federal statutory rate was 21 % for nine months ended December

31, 2024 and 2023.

income tax expense from continuing operations for the nine months ended December 31, 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.

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.

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, 2025

and 2024 was $ 10,770 and $ 4,038 , respectively.

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

December 31, 2024 and 2023 was $ 21,462 and $ 21,619 , 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, 2024 and 2023 were $ 2,544 and $ 3,893 , respectively.

Amounts paid by the principal stockholder directly to the lessor

for the nine months ending December 31, 2024 and 2023 were $ 9,430 and $ 11,679 , 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.

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, 2024 and 2023:

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.

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

Three Months Ended

Nine Months Ended

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, 2024, 60,500 shares relating to stock options were excluded from the computation of diluted

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

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.

For the three and nine months ended December 31, 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.

at June 30, 2024.

Stockholders’ Equity

2 unchanged sentences

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

any time by the board of directors.

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.

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.

Repurchases will be funded from cash flow.

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

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

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 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

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 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.

the nine months ended December 31, 2023, the Company incurred approximately $ 490,000 in acquisition costs to acquire various royalty

interests in approximately 60 producing wells in Crane, Ector, Howard, Midland, Reeves and Upton Counties, Texas.

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.

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.

Subsequent Events

January 2025, the Company expended approximately $ 70,000 for the drilling of six horizontal wells in the Bone Spring Sand formation of

the Delaware Basin in Lea County, New Mexico.

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.

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