10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q 

☒              Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the quarterly period ended March 31, 2023

or

☐              Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Commission File Number 1-5103 

BARNWELL INDUSTRIES, INC.

(Exact name of registrant as specified in its charter) 

Delaware	72-0496921
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)
1100 Alakea Street, Suite 500, Honolulu, Hawaii	96813
(Address of principal executive offices)	(Zip code)
(808) 531-8400
(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, $0.50 par value	BRN	NYSE American

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    ☒ Yes   ☐ No

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).     ☒ Yes   ☐ No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company.  See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and "emerging growth company" in Rule 12b-2 of the Exchange Act.

Large accelerated filer	☐	Accelerated filer	☐
Non-accelerated filer	☒	Smaller reporting company	☒
		Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).          ☐ Yes   ☒ No

As of May 5, 2023 there were 9,956,687 shares of common stock, par value $0.50, outstanding.

BARNWELL INDUSTRIES, INC.

AND SUBSIDIARIES

INDEX 

PART I.	FINANCIAL INFORMATION:
Item 1.	Financial Statements (Unaudited)
	Condensed Consolidated Balance Sheets - March 31, 2023 and September 30, 2022	3
	Condensed Consolidated Statements of Operations - three and six months ended March 31, 2023 and 2022	4
	Condensed Consolidated Statements of Comprehensive (Loss) Income - three and six months ended March 31, 2023 and 2022	5
	Condensed Consolidated Statements of Equity - three and six months ended March 31, 2023 and 2022	6
	Condensed Consolidated Statements of Cash Flows - six months ended March 31, 2023 and 2022	8
	Notes to Condensed Consolidated Financial Statements	9
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	28
Item 4.	Controls and Procedures	41
PART II.	OTHER INFORMATION:
Item 6.	Exhibits	42
	Signature	43
	Index to Exhibits	44

PART I - FINANCIAL INFORMATION

ITEM 1.    FINANCIAL STATEMENTS

BARNWELL INDUSTRIES, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)

	March 31, 2023		September 30, 2022
ASSETS
Current assets:
Cash and cash equivalents	$	5,779,000	$	12,804,000
Accounts and other receivables, net of allowance for doubtful accounts of:    $249,000 at March 31, 2023; $231,000 at September 30, 2022	2,965,000		4,361,000
Income taxes receivable	13,000		—
Other current assets	3,043,000		2,932,000
Total current assets	11,800,000		20,097,000
Asset for retirement benefits	3,515,000		3,385,000
Operating lease right-of-use assets	94,000		132,000
Property and equipment:
Oil and natural gas properties, full cost method of accounting:
Proved properties	71,270,000		67,883,000
Advances to operators for capital expenditures	481,000		—
Unproved properties	4,873,000		—
Drilling rigs and other property and equipment	6,960,000		6,923,000
Total property and equipment	83,584,000		74,806,000
Accumulated depletion, impairment, depreciation, and amortization	(63,494,000)		(61,205,000)
Total property and equipment, net	20,090,000		13,601,000
Total assets	$	35,499,000	$	37,215,000
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable	$	1,808,000	$	1,462,000
Accrued capital expenditures	1,565,000		1,655,000
Accrued compensation	456,000		999,000
Accrued operating and other expenses	1,294,000		1,576,000
Current portion of asset retirement obligation	1,453,000		1,327,000
Other current liabilities	970,000		1,908,000
Total current liabilities	7,546,000		8,927,000
Long-term debt	—		44,000
Operating lease liabilities	69,000		117,000
Liability for retirement benefits	1,692,000		1,649,000
Asset retirement obligation	7,197,000		7,129,000
Deferred income tax liabilities	131,000		188,000
Total liabilities	16,635,000		18,054,000
Commitments and contingencies
Equity:
Common stock, par value $0.50 per share; authorized, 40,000,000 shares:     10,124,587 issued at March 31, 2023 and September 30, 2022	5,062,000		5,062,000
Additional paid-in capital	7,541,000		7,351,000
Retained earnings	7,273,000		7,720,000
Accumulated other comprehensive income, net	1,256,000		1,294,000
Treasury stock, at cost: 167,900 shares at March 31, 2023 and September 30, 2022	(2,286,000)		(2,286,000)
Total stockholders’ equity	18,846,000		19,141,000
Non-controlling interests	18,000		20,000
Total equity	18,864,000		19,161,000
Total liabilities and equity	$	35,499,000	$	37,215,000

See Notes to Condensed Consolidated Financial Statements

3

BARNWELL INDUSTRIES, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

	Three months ended March 31,				Six months ended March 31,
	2023		2022		2023		2022
Revenues:
Oil and natural gas	$	3,686,000	$	5,133,000	$	8,912,000	$	9,053,000
Contract drilling	1,501,000		818,000		3,449,000		1,694,000
Sale of interest in leasehold land	—		695,000		265,000		1,295,000
Gas processing and other	52,000		33,000		124,000		91,000
	5,239,000		6,679,000		12,750,000		12,133,000
Costs and expenses:
Oil and natural gas operating	2,267,000		2,126,000		4,711,000		4,042,000
Contract drilling operating	1,401,000		918,000		3,258,000		1,898,000
General and administrative	2,050,000		2,241,000		4,299,000		4,071,000
Depletion, depreciation, and amortization	761,000		618,000		1,601,000		1,101,000
Foreign currency gain	(2,000)		—		(80,000)		—
Gain on sale of assets	—		—		(551,000)		—
	6,477,000		5,903,000		13,238,000		11,112,000
(Loss) earnings before equity in income of affiliates and income taxes	(1,238,000)		776,000		(488,000)		1,021,000
Equity in income of affiliates	—		1,760,000		538,000		2,967,000
(Loss) earnings before income taxes	(1,238,000)		2,536,000		50,000		3,988,000
Income tax (benefit) provision	(3,000)		138,000		76,000		250,000
Net (loss) earnings	(1,235,000)		2,398,000		(26,000)		3,738,000
Less: Net earnings attributable to non-controlling interests	2,000		346,000		122,000		613,000
Net (loss) earnings attributable to Barnwell Industries, Inc.	$	(1,237,000)	$	2,052,000	$	(148,000)	$	3,125,000
Basic and diluted net (loss) earnings per common share attributable to Barnwell Industries, Inc. stockholders	$	(0.12)	$	0.21	$	(0.01)	$	0.33
Weighted-average number of common shares outstanding:
Basic and diluted	9,956,687		9,570,989		9,956,687		9,507,955

See Notes to Condensed Consolidated Financial Statements

4

BARNWELL INDUSTRIES, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME

(Unaudited)

	Three months ended March 31,				Six months ended March 31,
	2023		2022		2023		2022
Net (loss) earnings	$	(1,235,000)	$	2,398,000	$	(26,000)	$	3,738,000
Other comprehensive (loss) income:
Foreign currency translation adjustments, net of taxes of $0	—		12,000		2,000		(13,000)
Retirement plans:
Amortization of accumulated other comprehensive gain into net periodic benefit cost, net of taxes of $0	(20,000)		—		(40,000)		—
Total other comprehensive (loss) income	(20,000)		12,000		(38,000)		(13,000)
Total comprehensive (loss) income	(1,255,000)		2,410,000		(64,000)		3,725,000
Less: Comprehensive income attributable to non-controlling interests	(2,000)		(346,000)		(122,000)		(613,000)
Comprehensive (loss) income attributable to Barnwell Industries, Inc.	$	(1,257,000)	$	2,064,000	$	(186,000)	$	3,112,000

See Notes to Condensed Consolidated Financial Statements

5

BARNWELL INDUSTRIES, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF EQUITY

Three months ended March 31, 2023 and 2022

(Unaudited)

	Shares Outstanding	Common Stock		Additional Paid-In Capital		Retained Earnings		Accumulated Other Comprehensive Income		Treasury Stock		Non-controlling Interests		Total Equity
Balance at December 31, 2021	9,446,783	$	4,807,000	$	4,846,000	$	3,429,000	$	7,000	$	(2,286,000)	$	24,000	$	10,827,000
Net earnings	—	—		—		2,052,000		—		—		346,000		2,398,000
Foreign currency translation adjustments, net of taxes of $0	—	—		—		—		12,000		—		—		12,000
Distributions to non-controlling interests	—	—		—		—		—		—		(306,000)		(306,000)
Share-based compensation	—	—		173,000		—		—		—		—		173,000
Issuance of common stock for services	437	—		1,000		—		—		—		—		1,000
Issuance of common stock, net of costs	509,467	255,000		2,101,000		—		—		—		—		2,356,000
Balance at March 31, 2022	9,956,687	$	5,062,000	$	7,121,000	$	5,481,000	$	19,000	$	(2,286,000)	$	64,000	$	15,461,000
Balance at December 31, 2022	9,956,687	$	5,062,000	$	7,466,000	$	8,660,000	$	1,276,000	$	(2,286,000)	$	32,000	$	20,210,000
Net (loss) earnings	—	—		—		(1,237,000)		—		—		2,000		(1,235,000)
Distributions to non-controlling interests	—	—		—		—		—		—		(16,000)		(16,000)
Share-based compensation	—	—		75,000		—		—		—		—		75,000
Dividends declared, $0.015 per share	—	—		—		(150,000)		—		—		—		(150,000)
Retirement plans:
Amortization of accumulated other comprehensive gain into net periodic benefit cost, net of taxes of $0	—	—		—		—		(20,000)		—		—		(20,000)
Balance at March 31, 2023	9,956,687	$	5,062,000	$	7,541,000	$	7,273,000	$	1,256,000	$	(2,286,000)	$	18,000	$	18,864,000

See Notes to Condensed Consolidated Financial Statements

6

BARNWELL INDUSTRIES, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF EQUITY

Six months ended March 31, 2023 and 2022

(Unaudited)

	Shares Outstanding	Common Stock		Additional Paid-In Capital		Retained Earnings		Accumulated Other Comprehensive Income		Treasury Stock		Non-controlling Interests		Total Equity
Balance at September 30, 2021	9,445,625	$	4,807,000	$	4,590,000	$	2,356,000	$	32,000	$	(2,286,000)	$	8,000	$	9,507,000
Net earnings	—	—		—		3,125,000		—		—		613,000		3,738,000
Foreign currency translation adjustments, net of taxes of $0	—	—		—		—		(13,000)		—		—		(13,000)
Distributions to non-controlling interests	—	—		—		—		—		—		(557,000)		(557,000)
Share-based compensation	—	—		427,000		—		—		—		—		427,000
Issuance of common stock for services	1,595	—		3,000		—		—		—		—		3,000
Issuance of common stock, net of costs	509,467	255,000		2,101,000		—		—		—		—		2,356,000
Balance at March 31, 2022	9,956,687	$	5,062,000	$	7,121,000	$	5,481,000	$	19,000	$	(2,286,000)	$	64,000	$	15,461,000
Balance at September 30, 2022	9,956,687	$	5,062,000	$	7,351,000	$	7,720,000	$	1,294,000	$	(2,286,000)	$	20,000	$	19,161,000
Net (loss) earnings	—	—		—		(148,000)		—		—		122,000		(26,000)
Foreign currency translation adjustments, net of taxes of $0	—	—		—		—		2,000		—		—		2,000
Distributions to non-controlling interests	—	—		—		—		—		—		(124,000)		(124,000)
Share-based compensation	—	—		190,000		—		—		—		—		190,000
Dividends declared, $0.030 per share	—	—		—		(299,000)		—		—		—		(299,000)
Retirement plans:
Amortization of accumulated other comprehensive gain into net periodic benefit cost, net of taxes of $0	—	—		—		—		(40,000)		—		—		(40,000)
Balance at March 31, 2023	9,956,687	$	5,062,000	$	7,541,000	$	7,273,000	$	1,256,000	$	(2,286,000)	$	18,000	$	18,864,000

See Notes to Condensed Consolidated Financial Statements

7

BARNWELL INDUSTRIES, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited) 

	Six months ended March 31,
	2023		2022
Cash flows from operating activities:
Net (loss) earnings	$	(26,000)	$	3,738,000
Adjustments to reconcile net (loss) earnings to net cash
provided by operating activities:
Equity in income of affiliates	(538,000)		(2,967,000)
Depletion, depreciation, and amortization	1,601,000		1,101,000
Gain on sale of assets	(551,000)		—
Sale of interest in leasehold land, net of fees paid	(233,000)		(1,137,000)
Distributions of income from equity investees	319,000		2,737,000
Retirement benefits income	(126,000)		(136,000)
Non-cash rent income	(12,000)		—
Accretion of asset retirement obligation	395,000		351,000
Deferred income tax benefit	(57,000)		(2,000)
Asset retirement obligation payments	(529,000)		(363,000)
Share-based compensation expense	190,000		427,000
Common stock issued for services	—		3,000
Retirement plan contributions and payments	(2,000)		(1,000)
Bad debt expense	18,000		44,000
Foreign currency gain	(80,000)		—
Increase (decrease) from changes in current assets and liabilities	365,000		(2,096,000)
Net cash provided by operating activities	734,000		1,699,000
Cash flows from investing activities:
Distribution from equity investees in excess of earnings	219,000		230,000
Proceeds from sale of interest in leasehold land, net of fees paid	233,000		1,137,000
Proceeds from the sale of contract drilling assets	—		687,000
Payments to acquire oil and natural gas properties	—		(1,563,000)
Capital expenditures - oil and natural gas	(7,306,000)		(5,223,000)
Capital expenditures - all other	(35,000)		(9,000)
Advances to operators for capital expenditures	(481,000)		—
Issuance of note receivable	—		(400,000)
Net cash used in investing activities	(7,370,000)		(5,141,000)
Cash flows from financing activities:
Distributions to non-controlling interests	(124,000)		(557,000)
Payment of dividends	(299,000)		—
Proceeds from issuance of stock, net of costs	—		2,356,000
Net cash (used in) provided by financing activities	(423,000)		1,799,000
Effect of exchange rate changes on cash and cash equivalents	34,000		(10,000)
Net decrease in cash and cash equivalents	(7,025,000)		(1,653,000)
Cash and cash equivalents at beginning of period	12,804,000		11,279,000
Cash and cash equivalents at end of period	$	5,779,000	$	9,626,000

See Notes to Condensed Consolidated Financial Statements

8

BARNWELL INDUSTRIES, INC.

AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

1.    SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Principles of Consolidation

The condensed consolidated financial statements include the accounts of Barnwell Industries, Inc. and all majority-owned subsidiaries (collectively referred to herein as “Barnwell,” “we,” “our,” “us,” or the “Company”), including a 77.6%-owned land investment general partnership (Kaupulehu Developments), a 75%-owned land investment partnership (KD Kona 2013 LLLP), and a variable interest entity (Teton Barnwell Fund I, LLC) for which the Company is deemed to be the primary beneficiary. All significant intercompany accounts and transactions have been eliminated.

    Undivided interests in oil and natural gas exploration and production joint ventures are consolidated on a proportionate basis. Barnwell’s investments in both unconsolidated entities in which a significant, but less than controlling, interest is held and in variable interest entities in which the Company is not deemed to be the primary beneficiary are accounted for by the equity method.

Unless otherwise indicated, all references to “dollars” in this Form 10-Q are to U.S. dollars.

Unaudited Interim Financial Information

The accompanying unaudited condensed consolidated financial statements and notes have been prepared by Barnwell in accordance with the rules and regulations of the United States (“U.S.”) Securities and Exchange Commission. Accordingly, certain information and footnote disclosures normally included in the annual financial statements prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) have been condensed or omitted pursuant to those rules and regulations, although the Company believes that the disclosures made are adequate to make the information not misleading. These condensed consolidated financial statements and notes should be read in conjunction with the consolidated financial statements and notes thereto included in Barnwell’s September 30, 2022 Annual Report on Form 10-K, as amended by our Form 10-K/A Amendment No. 1 (our “2022 Annual Report”). The Condensed Consolidated Balance Sheet as of September 30, 2022 has been derived from audited consolidated financial statements.

In the opinion of management, all adjustments (which include only normal recurring adjustments, with the exception of an out-of-period adjustment for the six months ended March 31, 2023 as described below) necessary to present fairly the financial position at March 31, 2023, results of operations, comprehensive (loss) income, and equity for the three and six months ended March 31, 2023 and 2022, and cash flows for the six months ended March 31, 2023 and 2022, have been made. The results of operations for the period ended March 31, 2023 are not necessarily indicative of the operating results for the full year.

Out-of-Period Adjustment

During the three months ended December 31, 2022, errors were identified related to estimates of accrued oil and natural gas sales and accrued professional fees for the year ended September 30, 2022.

9

Accordingly, the Company recorded out-of-period adjustments in the three months ended December 31, 2022 for the rollover effect of those differences which were immaterial to the results of that quarter. For the six months ended March 31, 2023, the rollover effect of those out-of-period adjustments both decreased oil and natural gas revenues and increased general and administrative expenses by a total of $147,000, which accordingly increased our net loss before income taxes and net loss for the six months ended March 31, 2023 by the same amount. The net earnings per basic and diluted share attributable to Barnwell stockholders would have been $0.02 lower for the year ended September 30, 2022 and the net loss per basic and diluted share attributable to Barnwell stockholders would have been $0.01 lower for the six months ended March 31, 2023 had the amounts been reflected in the periods to which they relate. Based upon an evaluation of all relevant quantitative and qualitative factors, and after considering the provisions of Staff Accounting Bulletin (SAB) No. 99, “Materiality,” and SAB 108, management believes these out-of-period correcting adjustments were not material to the Company’s results for the six months ended March 31, 2023 or the Company’s trend of operating results. We evaluated the impact of these out-of-period adjustments on the results of our previously issued financial statements for the year ended September 30, 2022 and first quarter ended December 31, 2022 and concluded that the impact was not material as well.

Use of Estimates in the Preparation of Condensed Consolidated Financial Statements

The preparation of the condensed consolidated financial statements in conformity with U.S. GAAP requires management of Barnwell to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses and the disclosure of contingent assets and liabilities. Actual results could differ significantly from those estimates. Significant assumptions are required in the valuation of deferred tax assets, asset retirement obligations, share-based payment arrangements, obligations for retirement plans, contract drilling estimated costs to complete, proved oil and natural gas reserves, and the carrying value of other assets, and such assumptions may impact the amount at which such items are recorded.

Significant Accounting Policies

Other than as set forth below, there have been no changes to Barnwell's significant accounting policies as described in the Notes to Consolidated Financial Statements included in Item 8 of the Company's 2022 Annual Report.

Advances to Operators for Capital Expenditures

The Company participates in the drilling of crude oil and natural gas wells with other working interest partners. Due to the capital-intensive nature of crude oil and natural gas drilling activities, the working interest partner responsible for conducting the drilling operations may request advance payments from other working interest partners for their share of the costs. The Company expects such advances to be applied by working interest partners against joint interest billings for its share of drilling operations within 90 days from when the advance is paid.

10

2.    (LOSS) EARNINGS PER COMMON SHARE

Basic (loss) earnings per share is computed using the weighted-average number of common shares outstanding for the period. Diluted (loss) earnings per share is calculated using the treasury stock method to reflect the assumed issuance of common shares for all potentially dilutive securities, which consist of outstanding stock options. Potentially dilutive shares are excluded from the computation of diluted (loss) earnings per share if their effect is anti-dilutive.

Options to purchase 615,000 shares of common stock were excluded from the computation of diluted shares for the three and six months ended March 31, 2023 and 2022, respectively, as their inclusion would have been anti-dilutive.

Reconciliations between net (loss) earnings attributable to Barnwell stockholders and common shares outstanding of the basic and diluted net (loss) earnings per share computations are detailed in the following tables:

	Three months ended March 31, 2023
	Net Loss (Numerator)		Shares (Denominator)	Per-Share Amount
Basic net loss per share	$	(1,237,000)	9,956,687	$	(0.12)
Effect of dilutive securities -
common stock options	—		—
Diluted net loss per share	$	(1,237,000)	9,956,687	$	(0.12)

	Six months ended March 31, 2023
	Net Loss (Numerator)		Shares (Denominator)	Per-Share Amount
Basic net loss per share	$	(148,000)	9,956,687	$	(0.01)
Effect of dilutive securities -
common stock options	—		—
Diluted net loss per share	$	(148,000)	9,956,687	$	(0.01)

	Three months ended March 31, 2022
	Net Earnings (Numerator)		Shares (Denominator)	Per-Share Amount
Basic net earnings per share	$	2,052,000	9,570,989	$	0.21
Effect of dilutive securities -
common stock options	—		—
Diluted net earnings per share	$	2,052,000	9,570,989	$	0.21

11

	Six months ended March 31, 2022
	Net Earnings (Numerator)		Shares (Denominator)	Per-Share Amount
Basic net earnings per share	$	3,125,000	9,507,955	$	0.33
Effect of dilutive securities -
common stock options	—		—
Diluted net earnings per share	$	3,125,000	9,507,955	$	0.33

3.    INVESTMENTS

Investment in Kukio Resort Land Development Partnerships

On November 27, 2013, Barnwell, through a wholly-owned subsidiary, entered into two limited liability limited partnerships, KD Kona 2013 LLLP (“KD Kona”) and KKM Makai, LLLP (“KKM”), and indirectly acquired a 19.6% non-controlling ownership interest in each of KD Kukio Resorts, LLLP, KD Maniniowali, LLLP and KD Kaupulehu, LLLP (“KDK”) for $5,140,000. These entities, collectively referred to hereinafter as the “Kukio Resort Land Development Partnerships,” own certain real estate and development rights interests in the Kukio, Maniniowali and Kaupulehu portions of Kukio Resort, a private residential community on the Kona coast of the island of Hawaii, as well as Kukio Resort’s real estate sales office operations. KDK holds interests in KD Acquisition, LLLP (“KD I”) and KD Acquisition II, LP, formerly KD Acquisition II, LLLP (“KD II”). KD I is the developer of Kaupulehu Lot 4A Increment I (“Increment I”), and KD II is the developer of Kaupulehu Lot 4A Increment II (“Increment II”). Barnwell’s ownership interests in the Kukio Resort Land Development Partnerships is accounted for using the equity method of accounting.

In March 2019, KD II admitted a new development partner, Replay Kaupulehu Development, LLC (“Replay”), a party unrelated to Barnwell, in an effort to move forward with development of the remainder of Increment II at Kaupulehu. KDK and Replay hold ownership interests of 55% and 45%, respectively, of KD II and Barnwell has a 10.8% indirect non-controlling ownership interest in KD II through KDK, which is accounted for using the equity method of accounting. Barnwell continues to have an indirect 19.6% non-controlling ownership interest in KD Kukio Resorts, LLLP, KD Maniniowali, LLLP, and KD I.

The partnerships derive income from the sale of residential parcels in Increment I, of which only one lot remains to be sold as of March 31, 2023, as well as from commissions on real estate sales by the real estate sales office and revenues resulting from the sale of private club memberships.

Increment II is not yet under development, and there is no assurance that development of such acreage will occur. No definitive development plans have been made by KD II, the developer of Increment II, as of the date of this report.

    Barnwell has the right to receive distributions from the Kukio Resort Land Development Partnerships via its non-controlling interest in KD Kona and KKM, based on its respective partnership sharing ratios of 75% and 34.45%, respectively. No cash distributions were received during the three months ended March 31, 2023. During the three months ended March 31, 2022, Barnwell received cash distributions of $1,760,000 from the Kukio Resort Land Development Partnerships resulting in a net amount of $1,568,000 after distributing $192,000 to non-controlling interests. During the six months

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ended March 31, 2023, Barnwell received cash distributions of $538,000 from the Kukio Resort Land Development Partnerships resulting in a net amount of $478,000, after distributing $60,000 to non-controlling interests. During the six months ended March 31, 2022, Barnwell received cash distributions of $2,967,000 from the Kukio Resort Land Development Partnerships resulting in a net amount of $2,643,000 after distributing $324,000 to non-controlling interests.

Equity in income of affiliates was nil and $538,000 for the three and six months ended March 31, 2023, respectively, as compared to equity in income of affiliates of $1,760,000 and $2,967,000 for the three and six months ended March 31, 2022, respectively.

Summarized financial information for the Kukio Resort Land Development Partnerships is as follows:

	Three months ended March 31,
	2023		2022
Revenue	$	1,284,000	$	9,665,000
Gross profit	$	738,000	$	6,433,000
Net (loss) earnings	$	(82,000)	$	5,673,000

	Six months ended March 31,
	2023		2022
Revenue	$	4,996,000	$	18,918,000
Gross profit	$	3,160,000	$	13,147,000
Net earnings	$	1,225,000	$	11,636,000

In the quarter ended June 30, 2021, the Company received cumulative distributions from the Kukio Resort Land Development Partnerships in excess of our investment balance and in accordance with applicable accounting guidance, the Company suspended its equity method earnings recognition and the Kukio Resort Land Development Partnerships investment balance was reduced to zero with the distributions received in excess of our investment balance recorded as equity in income of affiliates because the distributions are not refundable by agreement or by law and the Company is not liable for the obligations of or otherwise committed to provide financial support to the Kukio Resort Land Development Partnerships. The Company will record future equity method earnings only after our share of the Kukio Resort Land Development Partnerships’ cumulative earnings in excess of distributions during the suspended period exceeds our share of the Kukio Resort Land Development Partnerships’ income recognized for the excess distributions, and during this suspended period any distributions received will be recorded as equity in income of affiliates. Accordingly, the amount of equity in income of affiliates recognized in the six months ended March 31, 2023 was equivalent to the $538,000 of distributions received in that period.

Cumulative distributions received from the Kukio Resort Land Development Partnerships in excess of our investment balance was $1,211,000 at March 31, 2023 and $958,000 at September 30, 2022.

Sale of Interest in Leasehold Land

Kaupulehu Developments has the right to receive payments from KD I and KD II resulting from the sale of lots and/or residential units within Increment I and Increment II by KD I and KD II (see Note 17).

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With respect to Increment I, Kaupulehu Developments is entitled to receive payments from KD I based on 10% of the gross receipts from KD I’s sales of single-family residential lots in Increment I. One single-family lot was sold during the six months ended March 31, 2023 and one single-family lot, of the 79 lots developed within Increment I, remained to be sold as of March 31, 2023.

    The following table summarizes the Increment I revenues from KD I and the amount of fees directly related to such revenues:

	Three months ended March 31,				Six months ended March 31,
	2023		2022		2023		2022
Sale of interest in leasehold land:
Revenues - sale of interest in leasehold land	$	—	$	695,000	$	265,000	$	1,295,000
Fees - included in general and administrative expenses	—		(85,000)		(32,000)		(158,000)
Sale of interest in leasehold land, net of fees paid	$	—	$	610,000	$	233,000	$	1,137,000

There is no assurance with regards to the amounts of future payments from Increment I or Increment II to be received, or that the remaining acreage within Increment II will be developed. No definitive development plans have been made by KD II, the developer of Increment II, as of the date of this report.

Investment in Leasehold Land Interest - Lot 4C

Kaupulehu Developments holds an interest in an area of approximately 1,000 acres of vacant leasehold land zoned conservation located adjacent to Lot 4A, which currently has no development potential without both a development agreement with the lessor and zoning reclassification. The lease terminates in December 2025. 

4.    CONSOLIDATED VARIABLE INTEREST ENTITY

In February 2021, Barnwell Industries, Inc. established a new wholly-owned subsidiary named BOK Drilling, LLC (“BOK”) for the purpose of indirectly investing in oil and natural gas exploration and development in Oklahoma. BOK and Gros Ventre Partners, LLC (“Gros Ventre”) entered into the Limited Liability Agreement (the “Teton Operating Agreement”) of Teton Barnwell Fund I, LLC (“Teton Barnwell”), an entity formed for the purpose of directly entering into such oil and natural gas investments. Under the terms of the Teton Operating Agreement, the profits of Teton Barnwell are split between BOK and Gros Ventre at 98% and 2%, respectively, and as the manager of Teton Barnwell, Gros Venture is paid an annual asset management fee equal to 1% of the cumulative capital contributions made to Teton Barnwell as compensation for its management services. BOK is responsible for 100% of the capital contributions made to Teton Barnwell.

The Company has determined that Teton Barnwell is a variable interest entity (“VIE”) as the entity is structured with non-substantive voting rights and that the Company is the primary beneficiary. This is due to the fact that even though Teton Barnwell has a unanimous consent voting structure, BOK is responsible for 100% of the capital contributions required to fund Teton Barnwell’s future oil exploration and development investments pursuant to the Teton Operating Agreement and thus, BOK has the power to

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steer the decisions that most significantly impact Teton Barnwell’s economic performance and has the obligation to absorb any potential losses that could be significant to Teton Barnwell. As BOK is the primary beneficiary of the VIE, Teton Barnwell’s operating results, assets and liabilities are consolidated by the Company.

The following table summarizes the carrying value of the assets and liabilities of Teton Barnwell that are consolidated by the Company. Intercompany balances are eliminated in consolidation and thus, are not reflected in the table below.

	March 31, 2023		September 30, 2022
ASSETS
Cash and cash equivalents	$	15,000	$	623,000
Accounts and other receivables	298,000		606,000
Oil and natural gas properties, full cost method of accounting:
Proved properties, net	587,000		655,000
Total assets	$	900,000	$	1,884,000
LIABILITIES
Accounts payable	$	5,000	$	15,000
Accrued operating and other expenses	15,000		26,000
Total liabilities	$	20,000	$	41,000

5.    ASSET HELD FOR SALE

In September 2022, the Company entered into a purchase and sale agreement with an independent third party for the sale of a contract drilling segment drilling rig and received a payment of $551,000, net of related costs. At September 30, 2022, the legal title for the drilling rig had not yet transferred to the buyer and therefore, the Company did not record a sale during the year ended September 30, 2022. The proceeds received from the buyer was recognized as a deposit and recorded in “Other Current Liabilities” on the Company's Consolidated Balance Sheet at September 30, 2022. No amount was recorded as assets held for sale at September 30, 2022 as the drilling rig was fully depreciated and therefore had a net book value of zero. In October 2022, the legal title for the drilling rig was transferred to the buyer and as a result, the Company recognized a $551,000 gain on the sale of the drilling rig during the six months ended March 31, 2023.

6.    OIL AND NATURAL GAS PROPERTIES

Oil and Natural Gas Investments

In December 2022, Barnwell Texas, LLC (“Barnwell Texas”), a new wholly-owned subsidiary of the Company, entered into a purchase and sale agreement with an independent third party whereby Barnwell Texas acquired a 22.3% non-operated working interest in oil and natural gas leasehold acreage in the Permian Basin in Texas for cash consideration of $806,000. In connection with the purchase of such leasehold interests, Barnwell Texas acquired a 15.4% non-operated working interest in two oil wells in the Wolfcamp Formation in Loving and Ward Counties, Texas and made a pre-payment of $4,293,000 to pay its share of the estimated costs to drill, complete and equip the wells. During the six months ended March 31, 2023, the total costs incurred for the drilling of these two oil wells as of that date was $3,812,000 and thus, the remaining prepaid balance of $481,000 was recorded as “Advances to operators for capital expenditures” on the Company's Condensed Consolidated Balance sheet as of March 31, 2023.

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Additionally, in connection with the agreement, the Company is obligated to pay a broker’s fee of 5.0% of the capital invested under this arrangement to Four Pines Exploration LLC - Exploration - Series 1 (“Four Pines”). Four Pines is controlled by Mr. Colin O’Farrell who is an affiliate of Teton Barnwell (see Note 17 for additional details). As of March 31, 2023, the Company has paid $255,000 in broker fees to Four Pines related to this arrangement.

Oil and Natural Gas Acquisitions

There were no oil and natural gas working interest acquisitions during the six months ended March 31, 2023.

In the quarter ended December 31, 2021, Barnwell acquired working interests in oil and natural gas properties located in the Twining area of Alberta, Canada, for cash consideration of $317,000.

In January 2022, Barnwell acquired additional working interests in oil and natural gas properties located in the Twining area of Alberta, Canada for consideration of $1,246,000. The purchase price per the agreement was adjusted for customary purchase price adjustments to reflect the economic activity from the effective date to the closing date. Barnwell also assumed $1,500,000 in asset retirement obligations associated with the acquisition.

7.    RETIREMENT PLANS

Barnwell sponsors a noncontributory defined benefit pension plan (“Pension Plan”) covering substantially all of its U.S. employees and a noncontributory Supplemental Executive Retirement Plan (“SERP”), which covers certain current and former employees of Barnwell for amounts exceeding the limits allowed under the Pension Plan.

The following tables detail the components of net periodic benefit (income) cost for Barnwell’s retirement plans:

	Pension Plan				SERP
	Three months ended March 31,
	2023		2022		2023		2022
Interest cost	$	101,000	$	72,000	$	22,000	$	15,000
Expected return on plan assets	(166,000)		(155,000)		—		—
Amortization of net actuarial gain	—		—		(20,000)		—
Net periodic benefit (income) cost	$	(65,000)	$	(83,000)	$	2,000	$	15,000

	Pension Plan				SERP
	Six months ended March 31,
	2023		2022		2023		2022
Interest cost	$	203,000	$	145,000	$	44,000	$	30,000
Expected return on plan assets	(333,000)		(311,000)		—		—
Amortization of net actuarial gain	—		—		(40,000)		—
Net periodic benefit (income) cost	$	(130,000)	$	(166,000)	$	4,000	$	30,000

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The net periodic benefit (income) cost is included in “General and administrative” expenses in the Company's Condensed Consolidated Statements of Operations.

Currently, no contributions are expected to be made to the Pension Plan during fiscal 2023. The SERP plan is unfunded and Barnwell funds benefits when payments are made. Expected payments under the SERP for fiscal 2023 are not material. Fluctuations in actual equity market returns as well as changes in general interest rates will result in changes in the market value of plan assets and may result in increased or decreased retirement benefits costs and contributions in future periods.

8.    INCOME TAXES

The components of (loss) earnings before income taxes, after adjusting the (loss) earnings for non-controlling interests, are as follows:

	Three months ended March 31,				Six months ended March 31,
	2023		2022		2023		2022
United States	$	(1,275,000)	$	1,016,000	$	(1,257,000)	$	1,908,000
Canada	35,000		1,174,000		1,185,000		1,467,000
	$	(1,240,000)	$	2,190,000	$	(72,000)	$	3,375,000

The components of the income tax (benefit) provision are as follows:

	Three months ended March 31,				Six months ended March 31,
	2023		2022		2023		2022
Current	$	42,000	$	172,000	$	133,000	$	252,000
Deferred	(45,000)		(34,000)		(57,000)		(2,000)
	$	(3,000)	$	138,000	$	76,000	$	250,000

Consolidated taxes do not bear a customary relationship to pretax results due primarily to the fact that the Company is taxed separately in Canada based on Canadian source operations and in the U.S. based on consolidated operations, and essentially all deferred tax assets, net of relevant offsetting deferred tax liabilities, are not estimated to have a future benefit as tax credits or deductions. Income from our non-controlling interest in the Kukio Resort Land Development Partnerships is treated as non-unitary for state of Hawaii unitary filing purposes, thus unitary Hawaii losses provide limited sheltering of such non-unitary income. Income from our investment in the Oklahoma oil venture is 100% allocable to Oklahoma. As such, Barnwell receives no benefit from consolidated or unitary losses and, therefore, is subject to Oklahoma state taxes. In addition, net operating loss carryforwards, the benefit of which had not previously been recognized due to the Company's continuing full valuation allowance, are estimated to be partially utilized in the Canadian tax jurisdiction in the current year periods as the recognized benefit is now considered more likely to occur than not.

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9.    REVENUE FROM CONTRACTS WITH CUSTOMERS

Disaggregation of Revenue

    The following tables provide information about disaggregated revenue by revenue streams, reportable segments, geographical region, and timing of revenue recognition for the three and six months ended March 31, 2023 and 2022.

		Three months ended March 31, 2023
		Oil and natural gas		Contract drilling		Land investment		Other		Total
Revenue streams:
	Oil	$	2,789,000	$	—	$	—	$	—	$	2,789,000
	Natural gas	616,000		—		—		—		616,000
	Natural gas liquids	281,000		—		—		—		281,000
	Drilling and pump	—		1,501,000		—		—		1,501,000
	Other	—		—		—		29,000		29,000
	Total revenues before interest income	$	3,686,000	$	1,501,000	$	—	$	29,000	$	5,216,000
Geographical regions:
	United States	$	309,000	$	1,501,000	$	—	$	6,000	$	1,816,000
	Canada	3,377,000		—		—		23,000		3,400,000
	Total revenues before interest income	$	3,686,000	$	1,501,000	$	—	$	29,000	$	5,216,000
Timing of revenue recognition:
	Goods transferred at a point in time	$	3,686,000	$	—	$	—	$	29,000	$	3,715,000
	Services transferred over time	—		1,501,000		—		—		1,501,000
	Total revenues before interest income	$	3,686,000	$	1,501,000	$	—	$	29,000	$	5,216,000

		Three months ended March 31, 2022
		Oil and natural gas		Contract drilling		Land investment		Other		Total
Revenue streams:
	Oil	$	3,657,000	$	—	$	—	$	—	$	3,657,000
	Natural gas	859,000		—		—		—		859,000
	Natural gas liquids	617,000		—		—		—		617,000
	Drilling and pump	—		818,000		—		—		818,000
	Contingent residual payments	—		—		695,000		—		695,000
	Other	—		—		—		32,000		32,000
	Total revenues before interest income	$	5,133,000	$	818,000	$	695,000	$	32,000	$	6,678,000
Geographical regions:
	United States	$	992,000	$	818,000	$	695,000	$	—	$	2,505,000
	Canada	4,141,000		—		—		32,000		4,173,000
	Total revenues before interest income	$	5,133,000	$	818,000	$	695,000	$	32,000	$	6,678,000
Timing of revenue recognition:
	Goods transferred at a point in time	$	5,133,000	$	—	$	695,000	$	32,000	$	5,860,000
	Services transferred over time	—		818,000		—		—		818,000
	Total revenues before interest income	$	5,133,000	$	818,000	$	695,000	$	32,000	$	6,678,000

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		Six months ended March 31, 2023
		Oil and natural gas		Contract drilling		Land investment		Other		Total
Revenue streams:
	Oil	$	6,273,000	$	—	$	—	$	—	$	6,273,000
	Natural gas	1,918,000		—		—		—		1,918,000
	Natural gas liquids	721,000		—		—		—		721,000
	Drilling and pump	—		3,449,000		—		—		3,449,000
	Contingent residual payments	—		—		265,000		—		265,000
	Other	—		—		—		72,000		72,000
	Total revenues before interest income	$	8,912,000	$	3,449,000	$	265,000	$	72,000	$	12,698,000
Geographical regions:
	United States	$	826,000	$	3,449,000	$	265,000	$	8,000	$	4,548,000
	Canada	8,086,000		—		—		64,000		8,150,000
	Total revenues before interest income	$	8,912,000	$	3,449,000	$	265,000	$	72,000	$	12,698,000
Timing of revenue recognition:
	Goods transferred at a point in time	$	8,912,000	$	—	$	265,000	$	72,000	$	9,249,000
	Services transferred over time	—		3,449,000		—		—		3,449,000
	Total revenues before interest income	$	8,912,000	$	3,449,000	$	265,000	$	72,000	$	12,698,000

		Six months ended March 31, 2022
		Oil and natural gas		Contract drilling		Land investment		Other		Total
Revenue streams:
	Oil	$	6,325,000	$	—	$	—	$	—	$	6,325,000
	Natural gas	1,708,000		—		—		—		1,708,000
	Natural gas liquids	1,020,000		—		—		—		1,020,000
	Drilling and pump	—		1,694,000		—		—		1,694,000
	Contingent residual payments	—		—		1,295,000		—		1,295,000
	Other	—		—		—		89,000		89,000
	Total revenues before interest income	$	9,053,000	$	1,694,000	$	1,295,000	$	89,000	$	12,131,000
Geographical regions:
	United States	$	1,956,000	$	1,694,000	$	1,295,000	$	4,000	$	4,949,000
	Canada	7,097,000		—		—		85,000		7,182,000
	Total revenues before interest income	$	9,053,000	$	1,694,000	$	1,295,000	$	89,000	$	12,131,000
Timing of revenue recognition:
	Goods transferred at a point in time	$	9,053,000	$	—	$	1,295,000	$	89,000	$	10,437,000
	Services transferred over time	—		1,694,000		—		—		1,694,000
	Total revenues before interest income	$	9,053,000	$	1,694,000	$	1,295,000	$	89,000	$	12,131,000

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Contract Balances

    The following table provides information about accounts receivables, contract assets and contract liabilities from contracts with customers:

	March 31, 2023		September 30, 2022
Accounts receivables from contracts with customers	$	2,710,000	$	4,038,000
Contract assets	698,000		580,000
Contract liabilities	613,000		1,087,000

    Accounts receivables from contracts with customers are included in “Accounts and other receivables, net of allowance for doubtful accounts,” and contract assets, which includes costs and estimated earnings in excess of billings and retainage, are included in “Other current assets.” Contract liabilities, which includes billings in excess of costs and estimated earnings are included in “Other current liabilities” in the accompanying Condensed Consolidated Balance Sheets.

    Retainage, included in contract assets, represents amounts due from customers, but where payments are withheld contractually until certain construction milestones are met. Amounts retained typically range from 5% to 10% of the total invoice, up to contractually-specified maximums. The Company classifies as a current asset those retainages that are expected to be collected in the next twelve months.

    Contract assets represent the Company’s rights to consideration in exchange for services transferred to a customer that have not been billed as of the reporting date. The Company’s rights are generally unconditional at the time its performance obligations are satisfied.

    When the Company receives consideration or such consideration is unconditionally due from a customer prior to transferring goods or services to the customer under the terms of a sales contract, the Company records deferred revenue, which represents a contract liability. Such deferred revenue typically results from billings in excess of costs and estimated earnings on uncompleted contracts. As of March 31, 2023 and September 30, 2022, the Company had $613,000 and $1,087,000, respectively, included in “Other current liabilities” on the balance sheets for those performance obligations expected to be completed in the next twelve months.

    During the six months ended March 31, 2023 and 2022, the amount of revenue recognized that was previously included in contract liabilities as of the beginning of the respective period was $969,000 and $308,000, respectively.

    Contracts are sometimes modified for a change in scope or other requirements. The Company considers contract modifications to exist when the modification either creates new or changes the existing enforceable rights and obligations. Most of the Company’s contract modifications are for goods and services that are not distinct from the existing performance obligations. The effect of a contract modification on the transaction price, and the measure of progress for the performance obligation to which it relates, is recognized as an adjustment to revenue (either as an increase or decrease) on a cumulative catchup basis.

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Performance Obligations

    The Company’s remaining performance obligations for drilling and pump installation contracts (hereafter referred to as “backlog”) represent the unrecognized revenue value of the Company’s contract commitments. The Company’s backlog may vary significantly each reporting period based on the timing of major new contract commitments. In addition, our customers have the right, under some infrequent circumstances, to terminate contracts or defer the timing of the Company’s services and their payments to us. Nearly all of the Company's contract drilling segment contracts have original expected durations of one year or less. At March 31, 2023, the Company had five contract drilling jobs with original expected durations of greater than one year. For these contracts, 85% of the remaining performance obligation of $4,292,000 is expected to be recognized in the next twelve months and the remaining, thereafter.

Contract Fulfillment Costs

    Preconstruction costs, which include costs such as set-up and mobilization, are capitalized and allocated across all performance obligations and deferred and amortized over the contract term on a progress towards completion basis. As of March 31, 2023 and September 30, 2022, the Company had $619,000 and $689,000, respectively, in unamortized preconstruction costs related to contracts that were not completed. During the three and six months ended March 31, 2023 and 2022, the amortization of preconstruction costs related to contracts were not material and were included in the accompanying Condensed Consolidated Statements of Operations. Additionally, no impairment charges in connection with the Company’s preconstruction costs were recorded during the three and six months ended March 31, 2023 and 2022.

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10.    SEGMENT INFORMATION

Barnwell operates the following segments: 1) acquiring, developing, producing and selling oil and natural gas in Canada and the U.S. (oil and natural gas); 2) investing in land interests in Hawaii (land investment); and 3) drilling wells and installing and repairing water pumping systems in Hawaii (contract drilling).

The following table presents certain financial information related to Barnwell’s reporting segments. All revenues reported are from external customers with no intersegment sales or transfers.

	Three months ended March 31,				Six months ended March 31,
	2023		2022		2023		2022
Revenues:
Oil and natural gas	$	3,686,000	$	5,133,000	$	8,912,000	$	9,053,000
Contract drilling	1,501,000		818,000		3,449,000		1,694,000
Land investment	—		695,000		265,000		1,295,000
Other	29,000		32,000		72,000		89,000
Total before interest income	5,216,000		6,678,000		12,698,000		12,131,000
Interest income	23,000		1,000		52,000		2,000
Total revenues	$	5,239,000	$	6,679,000	$	12,750,000	$	12,133,000
Depletion, depreciation, and amortization:
Oil and natural gas	$	718,000	$	577,000	$	1,514,000	$	1,013,000
Contract drilling	43,000		41,000		86,000		88,000
Other	—		—		1,000		—
Total depletion, depreciation, and amortization	$	761,000	$	618,000	$	1,601,000	$	1,101,000
Operating profit (loss) (before general and administrative expenses):
Oil and natural gas	$	701,000	$	2,430,000	$	2,687,000	$	3,998,000
Contract drilling	57,000		(141,000)		105,000		(292,000)
Land investment	—		695,000		265,000		1,295,000
Other	29,000		32,000		71,000		89,000
Gain on sale of assets	—		—		551,000		—
Total operating profit	787,000		3,016,000		3,679,000		5,090,000
Equity in income of affiliates:
Land investment	—		1,760,000		538,000		2,967,000
General and administrative expenses	(2,050,000)		(2,241,000)		(4,299,000)		(4,071,000)
Foreign currency gain	2,000		—		80,000		—
Interest income	23,000		1,000		52,000		2,000
(Loss) earnings before income taxes	$	(1,238,000)	$	2,536,000	$	50,000	$	3,988,000

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11.    ACCUMULATED OTHER COMPREHENSIVE INCOME

The changes in each component of accumulated other comprehensive income were as follows:

	Three months ended March 31,				Six months ended March 31,
	2023		2022		2023		2022
Foreign currency translation:
Beginning accumulated foreign currency translation	$	224,000	$	237,000	$	222,000	$	262,000
Change in cumulative translation adjustment before reclassifications	—		12,000		2,000		(13,000)
Income taxes	—		—		—		—
Net current period other comprehensive income (loss)	—		12,000		2,000		(13,000)
Ending accumulated foreign currency translation	224,000		249,000		224,000		249,000
Retirement plans:
Beginning accumulated retirement plans benefit income (cost)	1,052,000		(230,000)		1,072,000		(230,000)
Amortization of net actuarial gain	(20,000)		—		(40,000)		—
Income taxes	—		—		—		—
Net current period other comprehensive (loss)	(20,000)		—		(40,000)		—
Ending accumulated retirement plans benefit income (cost)	1,032,000		(230,000)		1,032,000		(230,000)
Accumulated other comprehensive income, net of taxes	$	1,256,000	$	19,000	$	1,256,000	$	19,000

    The amortization of net actuarial gain for the retirement plans are included in the computation of net periodic benefit (income) cost which is a component of “General and administrative” expenses on the accompanying Condensed Consolidated Statements of Operations (see Note 7 for additional details).

12.    FAIR VALUE MEASUREMENTS

The carrying values of cash and cash equivalents, accounts and other receivables, accounts payable and accrued current liabilities approximate their fair values due to the short-term nature of the instruments.

Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis

The estimated fair values of oil and natural gas properties and the asset retirement obligation incurred in the drilling of oil and natural gas wells or assumed in the acquisitions of additional oil and natural gas working interests are based on an estimated discounted cash flow model and market assumptions. The significant Level 3 assumptions used in the calculation of estimated discounted cash flows included future commodity prices, projections of estimated quantities of oil and natural gas reserves, expectations for timing and amount of future development, operating and asset retirement costs, projections of future rates of production, expected recovery rates and risk adjusted discount rates.

Barnwell estimates the fair value of asset retirement obligations based on the projected discounted future cash outflows required to settle abandonment and restoration liabilities. Such an estimate requires assumptions and judgments regarding the existence of liabilities, the amount and timing of cash outflows required to settle the liability, what constitutes adequate restoration, inflation factors, credit adjusted

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discount rates, and consideration of changes in legal, regulatory, environmental and political environments. Abandonment and restoration cost estimates are determined in conjunction with Barnwell’s reserve engineers based on historical information regarding costs incurred to abandon and restore similar well sites, information regarding current market conditions and costs, and knowledge of subject well sites and properties. Asset retirement obligation fair value measurements in the current period were Level 3 fair value measurements.

13.                           DEBT

Canada Emergency Business Account Loan

In the quarter ended December 31, 2020, the Company’s Canadian subsidiary, Barnwell of Canada, received a loan of CAD$40,000 (in Canadian dollars) under the Canada Emergency Business Account (“CEBA”) loan program for small businesses. In the quarter ended March 31, 2021, the Company applied for an increase to our CEBA loan and received an additional CAD$20,000 for a total loan amount received of CAD$60,000 ($44,000) under the program. In January 2022, the Canadian government announced the extension of the CEBA loan repayment deadline and interest-free period from December 31, 2022 to December 31, 2023. Accordingly, the CEBA loan is interest-free with no principal payments required until December 31, 2023, after which the remaining loan balance is converted to a two year term loan at 5% annual interest paid monthly. If the Company repays 66.7% of the principal amount prior to December 31, 2023, there will be loan forgiveness of 33.3% up to a maximum of CAD$20,000. The current loan balance of $44,000 is included in “Other current liabilities” in the Company's Condensed Consolidated Balance sheet at March 31, 2023.

14.                                   STOCKHOLDERS' EQUITY

Cash Dividends

In December 2022, the Company's Board of Directors declared a cash dividend of $0.015 per share that was paid on January 11, 2023 to stockholders of record on December 27, 2022.

In February 2023, the Company's Board of Directors declared a cash dividend of $0.015 per share that was paid on March 13, 2023 to stockholders of record on February 23, 2023.

No dividends were declared or paid during the six months ended March 31, 2022.

The Tax Benefits Preservation Plan

On October 17, 2022, the Board of Directors of the Company adopted a Tax Benefits Preservation Plan (the “Tax Plan”) designed to protect the availability of the Company’s existing net operating loss carryforwards and certain other tax attributes. To implement the Tax Plan, the Board of Directors declared a dividend of one right (a “Right”) for each outstanding share of the Company's common stock. The Rights were issued to stockholders of record at the close of business on October 27, 2022 pursuant to the Tax Plan. The Rights are exercisable if a person or group of persons acquires 4.95% or more of the Company’s common stock. The Rights are also exercisable if a person or group of persons that already owns 4.95% or more of the Company’s common stock acquires an additional share other than as a result of a dividend or a stock split. Existing stockholders that beneficially own in excess of 4.95% of the Company’s common stock are “grandfathered in” at their current ownership level. If the Rights become exercisable, all holders of Rights, other than the person or group of persons triggering the Rights, will be entitled to purchase shares of the Company’s common stock at a 50% discount. Rights held by the person

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or group of persons triggering the Rights will become void and will not be exercisable.

On January 25, 2023, the Tax Plan was terminated by the Board of Directors and as a result, all Rights distributed to holders of the Company's common stock expired at the time of termination.

At The Market Offering

On March 16, 2021, the Company entered into a Sales Agreement (the “Sales Agreement”) with A.G.P./Alliance Global Partners (“A.G.P,”), with respect to an at-the-market offering program (“ATM”) pursuant to which the Company may offer and sell, from time to time, shares of its common stock, par value $0.50 per share, having an aggregate sales price of up to $25 million (subject to certain limitations set forth in the Sales Agreement and applicable securities laws, rules and regulations), through or to A.G.P as the Company’s sales agent or as principal. Sales of our common stock under the ATM, if any, will be made by any methods deemed to be “at the market offerings” as defined in Rule 415(a)(4) under the Securities Act, including sales made directly on the NYSE American, on any other existing trading market for our Common Stock, or to or through a market maker. Shares of common stock sold under the ATM are offered pursuant to the Company’s Registration Statement on Form S-3 (File No. 333-254365), filed with the Securities and Exchange Commission on March 16, 2021, and declared effective on March 26, 2021 (the "Registration Statement”), and the prospectus dated March 26, 2021, included in the Registration Statement.

During the six months ended March 31, 2022, the Company sold 509,467 shares of common stock resulting in net proceeds of $2,356,000 after commissions and fees of $75,000 and ATM-related professional services of $22,000. In August 2022, the Company’s Board of Directors suspended the sales of our common stock under the ATM until further notice.

15.    CONTINGENCIES

Legal and Regulatory Matters

Barnwell is routinely involved in disputes with third parties that occasionally require litigation. In addition, Barnwell is required to maintain compliance with all current governmental controls and regulations in the ordinary course of business. Barnwell’s management is not aware of any claims or litigation involving Barnwell that are likely to have a material adverse effect on its results of operations, financial position or liquidity.

In the quarter ended December 31, 2021, it was determined that a contract drilling segment well completed in the period did not meet the contract specifications for plumbness under a gyroscopic plumbness test which the contract required. While the well did pass the cage plumbness test, the contract uses the gyroscopic test as the measure of plumbness. Barnwell and the customer currently have an arrangement where Barnwell will provide for centralizers, armored cabling and a pump installation and removal test to confirm that plumbness is satisfactory. Barnwell’s management believes the plumbness deviation is not impactful to the performance of the submersible pumps that will be installed in the well. Accordingly, while costs for the centralizers, armored cabling and the pump installation and removal test have been accrued, no accrual has been recorded as of March 31, 2023 for any further costs related to this contract as there is no related probable or estimable contingent liability.

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16.    INFORMATION RELATING TO THE CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

	Six months ended March 31,
	2023		2022
Supplemental disclosure of cash flow information:
Cash paid during the year for:
Income taxes paid, net	$	100,000	$	302,000

Capital expenditure accruals related to oil and natural gas exploration and development decreased $105,000 during the six months ended March 31, 2023 and increased $443,000 during the six months ended March 31, 2022. Additionally, capital expenditure accruals related to oil and natural gas asset retirement obligations increased $220,000 and $2,341,000 during the six months ended March 31, 2023 and 2022, respectively.

17.    RELATED PARTY TRANSACTIONS

Kaupulehu Developments is entitled to receive payments from the sales of lots and/or residential units by KD I and KD II. KD I and KD II are part of the Kukio Resort Land Development Partnerships in which Barnwell holds indirect 19.6% and 10.8% non-controlling ownership interests, respectively, accounted for under the equity method of investment. The percentage of sales payments are part of transactions which took place in 2004 and 2006 where Kaupulehu Developments sold its leasehold interests in Increment I and Increment II to KD I's and KD II's predecessors in interest, respectively, which was prior to Barnwell’s affiliation with KD I and KD II which commenced on November 27, 2013, the acquisition date of our ownership interest in the Kukio Resort Land Development Partnerships. Changes to the arrangement above, effective March 7, 2019, are discussed in Note 3.

During the six months ended March 31, 2023, Barnwell received $265,000 in percentage of sales payments from KD 1 from the sale of one single-family lot within Increment I. During the six months ended March 31, 2022, Barnwell received $1,295,000 in percentage of sales payments from KD 1 from the sale of six single-family lots within Increment I.

Mr. Colin R. O'Farrell, formerly a member of the Board of Directors of the Company from July 7, 2021 to March 7, 2022, is the sole member of Four Pines Operating LLC which owns a 25% interest in Gros Ventre. In February 2021, Gros Ventre and BOK, a wholly-owned subsidiary of Barnwell, entered into the Teton Operating Agreement of Teton Barnwell, an entity formed for the purpose of directly investing in oil and natural gas exploration and development in Oklahoma. Under the terms of the Teton Operating Agreement, Gros Ventre makes no capital contributions and receives 2% of the profits of Teton Barnwell. Additionally, as the manager of Teton Barnwell, Gros Venture is paid an annual asset management fee equal to 1% of the cumulative capital contributions made to Teton Barnwell as compensation for its management services. Furthermore, as discussed above, Mr. O'Farrell controls Four Pines, which, as of March 31, 2023, was paid $255,000 in broker fees in connection with the oil and natural gas investment discussed in Note 6.

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Cooperation and Support Agreement

In January 2023, the Company entered into a cooperation and support agreement (the “Cooperation Agreement”) with Alexander C. Kinzler, the Company’s CEO and President in his capacity as a stockholder, MRMP-Managers LLC, the Ned L. Sherwood Revocable Trust, NLS Advisory Group, Inc. and Ned L. Sherwood (collectively, the “MRMP Stockholders”), with respect to a potential proxy contest pertaining to the election of directors to our Board of Directors (the “Board”). The Cooperation Agreement extended for two years the standstill terms of the previous agreement entered into with the MRMP Stockholders in 2021, which ended the potential of a proxy contest at the 2023 annual meeting of stockholders (the “2023 Annual Meeting”), which was held on April 17, 2023.

Pursuant to the terms of the Cooperation Agreement, among other things, the Company agreed to promptly appoint Joshua S. Horowitz and Laurance Narbut, effective February 9, 2023, to serve on the Board. In addition, the Company agreed to nominate a five-person board comprised of Mr. Kinzler, Kenneth Grossman, Douglas Woodrum, and Messrs. Horowitz and Narbut as candidates for election to the Board at the 2023 Annual Meeting and the 2024 annual meeting of stockholders (the “2024 Annual Meeting”) and Mr. Kinzler and the MRMP Stockholders agreed to vote their respective shares of common stock of the Company in favor of the election of the Company’s slate at the 2023 Annual Meeting and the 2024 Annual Meeting. Additionally, pursuant to the terms of the Cooperation Agreement, the Company terminated the previously adopted Tax Benefits Preservation Plan, although the MRMP Stockholders have agreed to limit their beneficial and economic ownership of the Company to 28% of the outstanding common stock of the Company for the next 12 months and 30% for the subsequent 12-month period. In exchange for this arrangement, the Company agreed to reimburse the MRMP Stockholders and Mr. Kinzler for their reasonable, documented out-of-pocket fees and expenses (including legal expenses) in connection with the negotiation and execution of the Cooperation Agreement and the transactions contemplated hereby and the proposed nomination of directors at the 2023 Annual Meeting. In the three and six months ended March 31, 2023, $202,000 and $149,000 in expenses were recorded for reimbursements to MRMP Stockholders and Mr. Kinzler, respectively, under the Cooperation Agreement.

In May 2023, the Company’s Board of Directors approved and ratified the payment of one-time special director fees to directors Messrs. Grossman and Woodrum for their services on behalf of the Company and the Board pertaining to the negotiations of the Cooperation Agreement and the settlement of the potential proxy contest. Mr. Grossman received a one-time special director fee of $100,000 to be paid by a cash payment of $40,000 and a stock grant of 22,728 shares of Barnwell common stock (valued at $60,000 using the closing price of Barnwell's common stock on May 11, 2023, the date of grant). Mr. Woodrum received a one-time special director fee of $50,000 to be paid by a cash payment of $20,000 and a stock grant of 11,363 shares of Barnwell common stock (valued at $30,000 using the closing price of Barnwell's common stock on May 11, 2023, the date of grant). Accordingly, these special one-time director fees of $150,000 were accrued by the Company as of March 31, 2023 and the amount is recorded in “Accounts payable” on the accompanying Condensed Consolidated Balance Sheet.

18.                           SUBSEQUENT EVENTS

In May 2023, the Company's Board of Directors declared a cash dividend of $0.015 per share payable on June 12, 2023 to stockholders of record on May 25, 2023.

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ITEM 2.    MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Cautionary Statement Relevant to Forward-Looking Information

For the Purpose Of “Safe Harbor” Provisions Of The

Private Securities Litigation Reform Act of 1995

This Form 10-Q, and the documents incorporated herein by reference, contain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 ("PSLRA"). A forward-looking statement is one which is based on current expectations of future events or conditions and does not relate to historical or current facts. These statements include various estimates, forecasts, projections of Barnwell’s future performance, statements of Barnwell’s plans and objectives, and other similar statements. All such statements we make are forward-looking statements made under the safe harbor of the PSLRA, except to the extent such statements relate to the operations of a partnership or limited liability company. Forward-looking statements include phrases such as “expects,” “anticipates,” “intends,” “plans,” “believes,” “predicts,” “estimates,” “assumes,” “projects,” “may,” “will,” “will be,” “should,” or similar expressions. Although Barnwell believes that its current expectations are based on reasonable assumptions, it cannot assure that the expectations contained in such forward-looking statements will be achieved. Forward-looking statements involve risks, uncertainties and assumptions which could cause actual results to differ materially from those contained in such statements. The risks, uncertainties and other factors that might cause actual results to differ materially from Barnwell’s expectations are set forth in the “Forward-Looking Statements” and “Risk Factors” sections of Barnwell’s 2022 Annual Report. Investors should not place undue reliance on these forward-looking statements, as they speak only as of the date of filing of this Form 10-Q, and Barnwell expressly disclaims any obligation or undertaking to publicly release any updates or revisions to any forward-looking statements contained herein.

Critical Accounting Policies and Estimates

Management has determined that our most critical accounting policies and estimates are those related to the full-cost ceiling calculation and depletion of our oil and natural gas properties, the estimation of our contract drilling segment's revenues and expenses, and the calculation of our income taxes, all of which are discussed in our 2022 Annual Report. There have been no significant changes to these critical accounting policies and estimates during the three and six months ended March 31, 2023. We continue to monitor our accounting policies to ensure proper application of current rules and regulations.

Impact of COVID-19

In March 2020, the World Health Organization declared the COVID-19 outbreak a global pandemic and the U.S. and Canadian governments declared the virus a national emergency shortly thereafter. The ongoing global health crisis (including resurgences) resulting from the pandemic have, and continue to, disrupt the normal operations of many businesses, including the temporary closure or scale-back of business operations and/or the imposition of either quarantine or remote work or meeting requirements for employees, either by government order or on a voluntary basis. While the outbreak recently appeared to be trending downward, particularly as vaccination rates increased, new variants of COVID-19 continue emerging, including the Omicron variants, spreading throughout the U.S. and globally and causing significant disruptions. The global economy, our markets and our business have been, and may continue to be, materially and adversely affected by COVID-19.

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The COVID-19 outbreak materially and adversely affected our business operations and financial condition as a result of the deteriorating market outlook, the global economic recession and weakened liquidity. Although demand for oil and oil prices has increased significantly from the lows of March through May of 2020, uncertainty regarding future oil prices continues to exist. While the Company’s contract drilling segment remained operational throughout fiscal 2020 through fiscal 2022 and continues to work, the continuing potential impact of COVID-19 on the health of our contract drilling segment's crews is uncertain, and any work stoppage or discontinuation of contracts currently in backlog could result in a material adverse impact to the Company’s financial condition and outlook. Though availability of vaccines and reopening of state and local economies has improved the outlook for recovery from COVID-19's impacts, the impact of new, more contagious or lethal variants that may emerge, and the effectiveness of COVID-19 vaccines against variants and the related responses by governments, including reinstated government-imposed lockdowns or other measures, cannot be predicted at this time. Both the health and economic aspects of the COVID-19 pandemic remain highly fluid and the future course of each is uncertain. We cannot foresee whether the outbreak of COVID-19 will be effectively contained on a sustained basis, nor can we predict the severity and duration of its impact. If the impact of COVID-19 is not effectively and timely controlled on a sustained basis going forward, our business operations and financial condition may be materially and adversely affected by factors that we cannot foresee. Any of these factors and other factors beyond our control could have an adverse effect on the overall business environment, cause uncertainties in the regions where we conduct business, cause our business to suffer in ways that we cannot predict and materially and adversely impact our business, financial condition and results of operations.

Impact of Recently Issued Accounting Standards on Future Filings

    In June 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2016-13, “Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments,” which replaces the incurred loss model with an expected loss model referred to as the current expected credit loss (“CECL”) model. The CECL model is applicable to the measurement of credit losses on financial assets measured at amortized cost, including but not limited to trade receivables. This ASU is effective for annual reporting periods beginning after December 15, 2022, and interim periods within those annual periods. The FASB has subsequently issued other related ASUs which amend ASU 2016-13 to provide clarification and additional guidance. The Company is currently evaluating the impact of these standards.

Overview

Barnwell is engaged in the following lines of business: 1) acquiring, developing, producing and selling oil and natural gas in Canada and the U.S. (oil and natural gas segment), 2) investing in land interests in Hawaii (land investment segment), and 3) drilling wells and installing and repairing water pumping systems in Hawaii (contract drilling segment).

Oil and Natural Gas Segment

Barnwell is involved in the acquisition and development of oil and natural gas properties in Canada where we initiate and participate in acquisition and developmental operations for oil and natural gas on properties in which we have an interest, and evaluate proposals by third parties with regard to participation in exploratory and developmental operations elsewhere. Additionally, through its wholly-owned subsidiaries, Barnwell is involved in several non-operated oil and natural gas investments in Oklahoma and Texas.

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Land Investment Segment

Through Barnwell’s 77.6% interest in Kaupulehu Developments, 75% interest in KD Kona, and 34.45% non-controlling interest in KKM Makai, the Company’s land investment interests include the following:

•The right to receive percentage of sales payments from KD I resulting from the sale of single-family residential lots by KD I, within Increment I of the Kaupulehu Lot 4A area located in the North Kona District of the island of Hawaii. Kaupulehu Developments is entitled to receive payments from KD I based on 10% of the gross receipts from KD I’s sales at Increment I. Increment I is an area zoned for approximately 79 single-family lots, of which one remained to be sold at March 31, 2023.

•The right to receive 15% of the distributions of KD II, the cost of which is to be solely borne by KDK out of its 55% ownership interest in KD II, plus a priority payout of 10% of KDK's cumulative net profits derived from Increment II sales subsequent to Phase 2A, up to a maximum of $3,000,000. Such interests are limited to distributions or net profits interests and Barnwell does not have any partnership interest in KD II or KDK through its interest in Kaupulehu Developments. Barnwell also has rights to three single-family residential lots in Phase 2A of Increment II, and four single-family residential lots in phases subsequent to Phase 2A when such lots are developed by KD II, all at no cost to Barnwell. Barnwell is committed to commence construction of improvements within 90 days of the transfer of the four lots in the phases subsequent to Phase 2A as a condition of the transfer of such lots. Also, in addition to Barnwell's existing obligations to pay professional fees to certain parties based on percentages of its gross receipts, Kaupulehu Developments is also obligated to pay an amount equal to 0.72% and 0.20% of the cumulative net profits of KD II to KD Development, LLC and a pool of various individuals, respectively, all of whom are partners of KKM and are unrelated to Barnwell. The remaining acreage within Increment II is not yet under development, and there is no assurance that development of such acreage will occur. No definitive development plans have been made by KDII, the developer of Increment II, as of the date of this report.

•An indirect 19.6% non-controlling ownership interest in KD Kukio Resorts, LLLP, KD Maniniowali, LLLP and KD I and an indirect 10.8% non-controlling ownership interest in KD II through KDK. These entities own certain real estate and development rights interests in the Kukio, Maniniowali and Kaupulehu portions of Kukio Resort, a private residential community on the Kona coast of the island of Hawaii, as well as Kukio Resort’s real estate sales office operations. KDK was the developer of Kaupulehu Lot 4A Increments I and II. The partnerships derive income from the sale of residential parcels as well as from commission on real estate sales by the real estate sales office and revenues resulting from the sale of private club memberships.

•Approximately 1,000 acres of vacant leasehold land zoned conservation in the Kaupulehu Lot 4C area, which currently has no development potential without both a development agreement with the lessor and zoning reclassification. The lease terminates in December 2025.

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Contract Drilling Segment 

Barnwell drills water and water monitoring wells and installs and repairs water pumping systems in Hawaii. Contract drilling results are highly dependent upon the quantity, dollar value and timing of contracts awarded by governmental and private entities and can fluctuate significantly.

Results of Operations

Summary

The net loss attributable to Barnwell for the three months ended March 31, 2023 totaled $1,237,000, a $3,289,000 decrease in operating results from net earnings of $2,052,000 for the three months ended March 31, 2022. The following factors affected the results of operations for the three months ended March 31, 2023 as compared to the prior year period:

•A $1,729,000 decrease in oil and natural gas segment operating results, before income taxes, due primarily to significant decreases in natural gas, oil, and natural gas liquid prices in the current period as compared to the same period in the prior year;

•Equity in income from affiliates decreased $1,760,000 and land investment segment operating results, before non-controlling interests’ share of such profits, decreased $695,000 due to the Kukio Resort Development Partnerships' sale of fewer lots in the current period. No lots were sold during the current year period, whereas there were three lot sales in the prior year period; and

•A $198,000 improvement in contract drilling segment operating results, before income taxes, due to work performed on higher value water well drilling contracts in the current year period as compared to the prior year period.

The net loss attributable to Barnwell for the six months ended March 31, 2023 totaled $148,000, a $3,273,000 decrease in operating results from a net earnings of $3,125,000 for the six months ended March 31, 2022. The following factors affected the results of operations for the six months ended March 31, 2023 as compared to the prior year period:

•A $1,311,000 decrease in oil and natural gas segment operating results, before income taxes, due to decreases in oil and natural gas prices and a decrease in the net production from wells in Oklahoma in the current year period as compared to the same period in the prior year; which was partially offset by an increase in the net production of oil and natural gas primarily due to the additional working interests acquired and wells drilled in the Twining area in fiscal 2022;

•Equity in income from affiliates decreased $2,429,000 and land investment segment operating results, before non-controlling interests’ share of such profits, decreased $1,030,000 due to the Kukio Resort Development Partnerships' sale of one lot in the current year period, whereas there were six lot sales in the prior year period;

•A $551,000 gain recognized in the current year period from the sale of a contract drilling segment drilling rig; and

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•A $397,000 increase in contract drilling segment operating results, before income taxes, primarily resulting from increased activity and an increase in the work performed on higher value water well drilling contracts in the current year period as compared to the prior year period.

General

Barnwell conducts operations in the U.S. and Canada. Consequently, Barnwell is subject to foreign currency translation and transaction gains and losses due to fluctuations of the exchange rates between the Canadian dollar and the U.S. dollar. Barnwell cannot accurately predict future fluctuations of the exchange rates and the impact of such fluctuations may be material from period to period. To date, we have not entered into foreign currency hedging transactions. Foreign currency gains or losses on intercompany loans and advances that are not considered long-term investments in nature because management intends to settle these intercompany balances in the future are included in our statements of operations.

The average exchange rate of the Canadian dollar to the U.S. dollar decreased 6% and 7% in the three and six months ended March 31, 2023, respectively, as compared to the same periods in the prior year. The exchange rate of the Canadian dollar to the U.S. dollar increased 1% at March 31, 2023, as compared to September 30, 2022. Accordingly, the assets, liabilities, stockholders’ equity and revenues and expenses of Barnwell’s subsidiaries operating in Canada have been adjusted to reflect the change in the exchange rates. Other comprehensive income and losses are not included in net earnings and net loss. Other comprehensive income due to foreign currency translation adjustments, net of taxes, for the three months ended March 31, 2023 was nil, a $12,000 change from other comprehensive income due to foreign currency translation adjustments, net of taxes, of $12,000 for the same period in the prior year. Other comprehensive income due to foreign currency translation adjustments, net of taxes, for the six months ended March 31, 2023 was $2,000, a $15,000 change from other comprehensive loss due to foreign currency translation adjustments, net of taxes, of $13,000 for the same period in the prior year. There were no taxes on other comprehensive income (loss) due to foreign currency translation adjustments in the three and six months ended March 31, 2023 and 2022 due to a full valuation allowance on the related deferred tax asset.

Oil and Natural Gas

The following tables set forth Barnwell’s average prices per unit of production and net production volumes. Production amounts reported are net of royalties.

	Average Price Per Unit
	Three months ended				Increase
	March 31,				(Decrease)
	2023		2022		$		%
Natural Gas (Mcf)*	$	2.61	$	3.93	$	(1.32)	(34	%)
Oil (Bbls)**	$	64.61	$	87.64	$	(23.03)	(26	%)
Natural gas liquids (Bbls)**	$	35.13	$	61.70	$	(26.57)	(43	%)

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	Average Price Per Unit
	Six months ended				Increase
	March 31,				(Decrease)
	2023		2022		$		%
Natural Gas (Mcf)*	$	3.54	$	4.00	$	(0.46)	(12	%)
Oil (Bbls)**	$	68.68	$	78.43	$	(9.75)	(12	%)
Natural gas liquids (Bbls)**	$	40.09	$	44.37	$	(4.28)	(10	%)

	Net Production
	Three months ended		Increase
	March 31,		(Decrease)
	2023	2022	Units	%
Natural Gas (Mcf)*	227,000	215,000	12,000	6	%
Oil (Bbls)**	43,000	42,000	1,000	2	%
Natural gas liquids (Bbls)**	8,000	10,000	(2,000)	(20	%)

	Net Production
	Six months ended		Increase
	March 31,		(Decrease)
	2023	2022	Units	%
Natural Gas (Mcf)*	527,000	420,000	107,000	25	%
Oil (Bbls)**	91,000	81,000	10,000	12	%
Natural gas liquids (Bbls)**	18,000	23,000	(5,000)	(22	%)

_______________________________________

*            Mcf = 1,000 cubic feet.  Natural gas price per unit is net of pipeline charges.

**          Bbl = stock tank barrel equivalent to 42 U.S. gallons

The oil and natural gas segment generated a $701,000 operating profit before general and administrative expenses in the three months ended March 31, 2023, a decrease in operating results of $1,729,000 as compared to the $2,430,000 operating profit before general and administrative expenses generated during the same period of the prior year. The oil and natural gas segment generated a $2,687,000 operating profit before general and administrative expenses in the six months ended March 31, 2023, a decrease in operating results of $1,311,000 as compared to the $3,998,000 operating profit before general and administrative expenses generated during the same period of the prior year.

Oil and natural gas revenues decreased $1,447,000 (28%) for the three months ended March 31, 2023, as compared to the same period in the prior year, primarily due to significant decreases in natural gas, oil, and natural gas liquid prices, which decreased 34%, 26%, and 43%, respectively, as compared to the same period in the prior year. Oil and natural gas revenues decreased $141,000 (2%) for the six months ended March 31, 2023, as compared to the same period in the prior year, primarily due to 12%, 12%, and 10% decreases in natural gas, oil, and natural gas liquid prices, respectively, and was partially offset by 12% and 25% increases in oil and natural gas production, respectively, as compared to the same period in the prior year. The increase in oil and natural gas production in the six months of the current year was due to new wells drilled in the Twining area, partially offset by a decrease in production from the Oklahoma wells.

Our Oklahoma operations generated $309,000 (8%) and $826,000 (9%) of our oil and natural gas segment revenues for the three and six months ended March 31, 2023, respectively, as compared to

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$992,000 (19%) and $1,956,000 (22%) of our oil and natural gas segment revenues for the three and six months ended March 31, 2022, respectively.

Oil and natural gas operating expenses increased $141,000 (7%) and $669,000 (17%) for the three and six months ended March 31, 2023, respectively, as compared to the same periods in the prior year, primarily due to production from wells drilled in the Twining area in fiscal 2022 and was partially offset by a decrease in production from wells in Oklahoma in the current year periods as compared to the prior year periods.

Oil and natural gas segment depletion increased $141,000 (24%) and $501,000 (49%) for the three and six months ended March 31, 2023, respectively, as compared to the same periods in the prior year. The increases were primarily due to increases in the depletion rate for Canadian properties and also new production from those properties, both of which were the result of the drilling of new wells, acquisition of additional working interests, and facilities expansion and upgrade costs, all in the Twining area. The increases in oil and natural gas depletion was partially offset by decreases in depletion for Oklahoma properties due to the decrease in production from wells in Oklahoma in the current year periods as compared to the prior year periods.

Oil prices continue to be volatile over time and thus the Company is unable to reasonably predict future oil, natural gas and natural gas liquids prices and the impacts future prices will have on the Company.

Sale of Interest in Leasehold Land

Kaupulehu Developments is entitled to receive a percentage of the gross receipts from the sales of lots and/or residential units in Increment I by KD I.

The following table summarizes the revenues received from KD I and the amount of fees directly related to such revenues:

	Three months ended March 31,				Six months ended March 31,
	2023		2022		2023		2022
Sale of interest in leasehold land:
Revenues - sale of interest in leasehold land	$	—	$	695,000	$	265,000	$	1,295,000
Fees - included in general and administrative expenses	—		(85,000)		(32,000)		(158,000)
Sale of interest in leasehold land, net of fees paid	$	—	$	610,000	$	233,000	$	1,137,000

No lots were sold during the three months ended March 31, 2023. During the three months ended March 31, 2022, Barnwell received $695,000 in percentage of sales payments from KD I from the sale of three single-family lots within Increment I.

During the six months ended March 31, 2023, Barnwell received $265,000 in percentage of sales payments from KD I from the sale of one single-family lot within Increment I. During the six months ended March 31, 2022, Barnwell received $1,295,000 in percentage of sales payments from KD 1 from the sale of six single-family lots within Increment I.

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As of March 31, 2023, only one single-family lot of the 79 lots developed within Increment I remained to be sold and it is not expected to be sold in the Company's fiscal 2023. The Company does not have a controlling interest in Increments I and II, and there is no assurance with regards to the amounts of future sales from Increments I and II, or that the remaining acreage within Increment II will be developed. No definitive development plans have been made by KD II, the developer of Increment II, as of the date of this report.

Contract Drilling

Contract drilling revenues and contract drilling costs increased $683,000 (83%) and $483,000 (53%), respectively, for the three months ended March 31, 2023, as compared to the same period in the prior year. The contract drilling segment generated a $57,000 operating profit before general and administrative expenses in the three months ended March 31, 2023, an increase in operating results of $198,000 as compared to the $141,000 operating loss generated during the same period of the prior year. Contract drilling revenues and contract drilling costs increased $1,755,000 (104%) and $1,360,000 (72%), respectively, for the six months ended March 31, 2023, as compared to the same period in the prior year. The contract drilling segment generated a $105,000 operating profit before general and administrative expenses in the six months ended March 31, 2023, an increase in operating results of $397,000 as compared to the $292,000 operating loss generated during the same period of the prior year.

The increases in contract drilling revenues and contract drilling costs for the three and six months ended March 31, 2023 as compared to the same periods in the prior year are due to a higher level of activity and work performed on higher value water well drilling contracts in the current year periods as compared to the same periods in the prior year and due to a higher amount of revenues and expenses recognized from previously uninstalled materials during the current year periods.

In the quarter ended December 31, 2021, it was determined that a contract drilling segment well completed in the period did not meet the contract specifications for plumbness under a gyroscopic plumbness test which the contract required. While the well did pass the cage plumbness test, the contract uses the gyroscopic test as the measure of plumbness. Barnwell and the customer currently have an arrangement where Barnwell will provide for centralizers, armored cabling and a pump installation and removal test to confirm that plumbness is satisfactory. Barnwell’s management believes the plumbness deviation is not impactful to the performance of the submersible pumps that will be installed in the well. Accordingly, while costs for the centralizers, armored cabling and the pump installation and removal test have been accrued, no accrual has been recorded as of March 31, 2023 for any further costs related to this contract as there is no related probable or estimable contingent liability.

There has been a significant decrease in demand for water well drilling contracts in recent years that has generally led to increased competition for available contracts and lower margins on awarded contracts. The Company is unable to predict the near-term and long-term availability of water well drilling and pump installation and repair contracts as a result of this volatility in demand. The continuing potential impact of COVID-19 on the health of our contract drilling segment's crew is uncertain, and any work stoppage or discontinuation of contracts currently in backlog due to COVID-19 impacts could result in a material adverse impact to the Company’s financial condition and outlook.

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General and Administrative Expenses

General and administrative expenses decreased $191,000 (9%) for the three months ended March 31, 2023 as compared to the same period in the prior year. The decrease was due to decreases of $98,000 in share-based compensation expense, $72,000 in compensation costs, $85,000 in professional fees related to land investment segment proceeds, and $432,000 in fees related to legal and consulting services in the current year period as compared to the same period in the prior year, partially offset by a $526,000 increase in stockholders costs primarily attributed to the cooperation and support agreement and associated fees to certain directors, as discussed below, in the current year period as compared to the same period in the prior year.

General and administrative expenses increased $228,000 (6%) for the six months ended March 31, 2023 as compared to the same period in the prior year. The increase was primarily due to increases of $161,000 in professional fees and $528,000 in stockholders costs primarily attributed to the cooperation and support agreement and associated fees to certain directors in the current year period as compared to the same period in the prior year, partially offset by decreases of $236,000 in share-based compensation expense and $126,000 in professional fees related to land investment segment proceeds in the current year period as compared to the same period in the prior year.

In January 2023, the Company entered into a cooperation and support agreement (the “Cooperation Agreement”) with Alexander C. Kinzler, the Company’s CEO and President in his capacity as a stockholder, MRMP-Managers LLC, the Ned L. Sherwood Revocable Trust, NLS Advisory Group, Inc. and Ned L. Sherwood (collectively, the “MRMP Stockholders”), with respect to a potential proxy contest pertaining to the election of directors to our Board of Directors (the “Board”). Pursuant to the terms of the Cooperation Agreement, among other things, the Company agreed to promptly appoint Joshua S. Horowitz and Laurance Narbut, effective February 9, 2023, to serve on the Board. In addition, the Company agreed to nominate a five-person board comprised of Mr. Kinzler, Kenneth Grossman, Douglas Woodrum, and Messrs. Horowitz and Narbut as candidates for election to the Board at the 2023 Annual Meeting, which was held on April 17, 2023, and the 2024 annual meeting of stockholders (the “2024 Annual Meeting”) and Mr. Kinzler and the MRMP Stockholders agreed to vote their respective shares of common stock of the Company in favor of the election of the Company’s slate at the 2023 Annual Meeting and the 2024 Annual Meeting. Additionally, pursuant to the terms of the Cooperation Agreement, the Company terminated the previously adopted Tax Benefits Preservation Plan. In exchange for this arrangement, the Company agreed to reimburse the MRMP Stockholders and Mr. Kinzler for their reasonable, documented out-of-pocket fees and expenses (including legal expenses) in connection with the negotiation and execution of the Cooperation Agreement and the transactions contemplated hereby and the proposed nomination of directors at the 2023 Annual Meeting. Accordingly, the Company incurred approximately $351,000 in expenses under the Cooperation Agreement in the three and six months ended March 31, 2023.

In May 2023, the Company’s Board of Directors approved and ratified the payment of one-time special director fees to directors Messrs. Grossman and Woodrum for their services on behalf of the Company and the Board pertaining to the negotiations of the Cooperation Agreement and the settlement of the potential proxy contest. Mr. Grossman received a one-time special director fee of $100,000 to be paid by a cash payment of $40,000 and a stock grant of 22,728 shares of Barnwell common stock (valued at $60,000 using the closing price of Barnwell's common stock on May 11, 2023, the date of grant). Mr. Woodrum received a one-time special director fee of $50,000 to be paid by a cash payment of $20,000 and a stock grant of 11,363 shares of Barnwell common stock (valued at $30,000 using the closing price of

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Barnwell's common stock on May 11, 2023, the date of grant). Accordingly, these special one-time director fees of $150,000 were accrued by the Company as of March 31, 2023.

Depletion, Depreciation, and Amortization

Depletion, depreciation, and amortization increased $143,000 (23%) and $500,000 (45%) for the three and six months ended March 31, 2023, respectively, as compared to the same periods in the prior year, primarily due to increases in the depletion rates for Canadian properties and also new production from those properties, partially offset by a decrease in depletion for Oklahoma properties as discussed in the “Oil and natural gas” section above.

Foreign Currency Gain

Foreign currency gain was $2,000 and $80,000 during the three and six months ended March 31, 2023, respectively, as compared to none during the three and six months ended March 31, 2022, due to the effects of foreign exchange rate changes on intercompany loans and advances as a result of the weakening of the U.S. dollar against the Canadian dollar. The foreign currency gain from intercompany balances was included in our condensed consolidated net earnings as the intercompany balances were not considered long-term in nature because management estimates that these intercompany balances will be settled in the future.

Gain on Sale of Assets

In October 2022, the Company completed the sale of a contract drilling segment drilling rig to an independent third part for proceeds of $551,000, net of related costs. The drilling rig was fully depreciated and had a net book value of zero and as a result of the sale, the Company recognized a $551,000 gain during the six months ended March 31, 2023.

Equity in Income of Affiliates

Equity in income of affiliates was nil and $538,000 during the three and six months ended March 31, 2023, respectively, as compared to equity in income of affiliates of $1,760,000 and $2,967,000 during the three and six months ended March 31, 2022, respectively. The decrease in partnership income is primarily due to the Kukio Resort Land Development Partnerships' sale of one lot during the current year period, as compared to six lot sales in the prior year period, of which three lots were sold in the quarter ended March 31, 2022. The Kukio Resort Land Development Partnerships have only one lot to sell in Increment I and we are not anticipating any more lot sales in fiscal 2023.

During the six months ended March 31, 2023, Barnwell received cash distributions of $538,000 from the Kukio Resort Land Development Partnerships resulting in a net amount of $478,000, after distributing $60,000 to non-controlling interests. During the six months ended March 31, 2022, Barnwell received cash distributions of $2,967,000 from the Kukio Resort Land Development Partnerships resulting in a net amount of $2,643,000 after distributing $324,000 to non-controlling interests.

In the quarter ended June 30, 2021, the Company received cumulative distributions from the Kukio Resort Land Development Partnerships in excess of our investment balance and in accordance with applicable accounting guidance, the Company suspended its equity method earnings recognition and the Kukio Resort Land Development Partnerships investment balance was reduced to zero with the distributions received in excess of our investment balance recorded as equity in income of affiliates

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because the distributions are not refundable by agreement or by law and the Company is not liable for the obligations of or otherwise committed to provide financial support to the Kukio Resort Land Development Partnerships. The Company will record future equity method earnings only after our share of the Kukio Resort Land Development Partnerships’ cumulative earnings in excess of distributions during the suspended period exceeds our share of the Kukio Resort Land Development Partnerships’ income recognized for the excess distributions, and during this suspended period any distributions received will be recorded as equity in income of affiliates. Accordingly, the amount of equity in income of affiliates recognized in the six months ended March 31, 2023 was equivalent to the $538,000 of distributions received in that period.

Cumulative distributions received from the Kukio Resort Land Development Partnerships in excess of our investment balance was $1,211,000 at March 31, 2023 and $958,000 at September 30, 2022.

Income Taxes

Barnwell’s effective consolidated income tax rate, after adjusting (loss) earnings before income taxes for non-controlling interests, was nil and (106)% for the three and six months ended March 31, 2023, respectively, as compared to 6% and 7% for the three and six months ended March 31, 2022. 

Consolidated taxes do not bear a customary relationship to pretax results due primarily to the fact that the Company is taxed separately in Canada based on Canadian source operations and in the U.S. based on consolidated operations, and essentially all deferred tax assets, net of relevant offsetting deferred tax liabilities, are not estimated to have a future benefit as tax credits or deductions. Income from our non-controlling interest in the Kukio Resort Land Development Partnerships is treated as non-unitary for state of Hawaii unitary filing purposes, thus unitary Hawaii losses provide limited sheltering of such non-unitary income. Income from our investment in the Oklahoma oil venture is 100% allocable to Oklahoma. As such, Barnwell receives no benefit from consolidated or unitary losses and, therefore, is subject to Oklahoma state taxes. In addition, net operating loss carryforwards, the benefit of which had not previously been recognized due to the Company's continuing full valuation allowance, are estimated to be partially utilized in the Canadian tax jurisdiction in the current year periods as the recognized benefit is now considered more likely to occur than not.

Net Earnings Attributable to Non-controlling Interests

Earnings and losses attributable to non-controlling interests represent the non-controlling interests’ share of revenues and expenses related to the various partnerships and joint ventures in which Barnwell has controlling interests and consolidates.

Net earnings attributable to non-controlling interests totaled $2,000 and $122,000 for the three and six months ended March 31, 2023, respectively, as compared to net earnings attributable to non-controlling interests of $346,000 and $613,000 for the same periods in the prior year. The changes of $344,000 (99%) and $491,000 (80%) for the three and six months, respectively, are primarily due to decreases in the amount of equity in income of affiliates and percentage of sales revenues received in the current year periods as compared to the same periods in the prior year.

Liquidity and Capital Resources

    Barnwell’s primary sources of liquidity are cash on hand, cash flow generated by operations and land investment segment proceeds. At March 31, 2023, Barnwell had $4,254,000 in working capital.

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Cash Flows

Cash flows provided by operations totaled $734,000 for the six months ended March 31, 2023, as compared to cash flows provided by operations of $1,699,000 for the same period in the prior year. This $965,000 change in operating cash flows was due to significantly lower operating results for the oil and natural gas segment in the current year period as compared to the prior year period. Additionally, the change was also due to a decrease in distributions of income from the Kukio Resort Land Development Partnerships in the current year period as compared to the prior year period and fluctuations in working capital.

Cash flows used in investing activities totaled $7,370,000 during the six months ended March 31, 2023, as compared to cash flows used in investing activities of $5,141,000 during the same period of the prior year. This $2,229,000 change in investing cash flows was due to an increase of $2,083,000 in cash paid for oil and natural gas capital expenditures, an increase of $481,000 in advances to operators for capital expenditures, a decrease of $904,000 in proceeds from sale of interest in leasehold land, net of costs paid, and a decrease of $687,000 in proceeds from the sale of assets in the current year period as compared to same period in the prior year, partially offset by a $1,563,000 decrease in payments to acquire oil and natural gas properties in the current year period as compared to the same period in the prior year.

Cash flows used in financing activities totaled $423,000 for the six months ended March 31, 2023, as compared to cash flows provided by financing activities of $1,799,000 for the six months ended March 31, 2022. The $2,222,000 change in financing cash flows was due to a $299,000 increase in payment of dividends and a $2,356,000 decrease in proceeds from issuance of common stock, net of costs, related to the Company's ATM offering in the prior year period, partially offset by a $433,000 decrease in distributions to non-controlling interests in the current year period as compared to the same period in the prior year.

Cash Dividends

In December 2022, the Company's Board of Directors declared a cash dividend of $0.015 per share that was paid on January 11, 2023 to stockholders of record on December 27, 2022.

In February 2023, the Company's Board of Directors declared a cash dividend of $0.015 per share that was paid on March 13, 2023 to stockholders of record on February 23, 2023.

No dividends were declared or paid during the six months ended March 31, 2022.

Canada Emergency Business Account Loan

In the quarter ended December 31, 2020, the Company’s Canadian subsidiary, Barnwell of Canada, received a loan of CAD$40,000 (in Canadian dollars) under the Canada Emergency Business Account (“CEBA”) loan program for small businesses. In the quarter ended March 31, 2021, the Company applied for an increase to our CEBA loan and received an additional CAD$20,000 for a total loan amount received of CAD$60,000 ($44,000) under the program. In January 2022, the Canadian government announced the extension of the CEBA loan repayment deadline and interest-free period from December 31, 2022 to December 31, 2023. Accordingly, the CEBA loan is interest-free with no principal payments required until December 31, 2023, after which the remaining loan balance is converted to a two year term

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loan at 5% annual interest paid monthly. If the Company repays 66.7% of the principal amount prior to December 31, 2023, there will be loan forgiveness of 33.3% up to a maximum of CAD$20,000. The current loan balance of $44,000 is included in “Other current liabilities” in the Company's Condensed Consolidated Balance sheet at March 31, 2023.

At The Market Offering

On March 16, 2021, the Company entered into a Sales Agreement (the “Sales Agreement”) with A.G.P./Alliance Global Partners (“A.G.P,”), with respect to the ATM pursuant to which the Company may offer and sell, from time to time, shares of its common stock, par value $0.50 per share, having an aggregate sales price of up to $25 million (subject to certain limitations set forth in the Sales Agreement and applicable securities laws, rules and regulations), through or to A.G.P as the Company’s sales agent or as principal. Sales of our common stock under the ATM, if any, will be made by any methods deemed to be “at the market offerings” as defined in Rule 415(a)(4) under the Securities Act, including sales made directly on the NYSE American, on any other existing trading market for our Common Stock, or to or through a market maker. Shares of common stock sold under the ATM are offered pursuant to the Company’s Registration Statement on Form S-3 (File No. 333-254365), filed with the Securities and Exchange Commission on March 16, 2021, and declared effective on March 26, 2021 (the "Registration Statement”), and the prospectus dated March 26, 2021, included in the Registration Statement.

During the six months ended March 31, 2022, the Company sold 509,467 shares of common stock resulting in net proceeds of $2,356,000 after commissions and fees of $75,000 and ATM-related professional services of $22,000. In August 2022, the Company’s Board of Directors suspended the sales of our common stock under the ATM until further notice.

Oil and Natural Gas Capital Expenditures

Barnwell’s oil and natural gas capital expenditures, including accrued capital expenditures, advances to operators, and excluding acquisitions and additions and revisions to estimated asset retirement obligations, totaled $1,752,000 and $7,680,000 for the three and six months ended March 31, 2023, respectively, as compared to $2,796,000 and $5,666,000 for the same periods in the prior year.

In December 2022, Barnwell Texas, LLC (“Barnwell Texas”), a new wholly-owned subsidiary of the Company, entered into a purchase and sale agreement with an independent third party whereby Barnwell Texas acquired a 22.3% non-operated working interest in oil and natural gas leasehold acreage in the Permian Basin in Texas for cash consideration of $806,000. In connection with the purchase of such leasehold interests, Barnwell Texas acquired a 15.4% non-operated working interest in two oil wells in the Wolfcamp Formation in Loving and Ward Counties, Texas and made a pre-payment of $4,293,000 to pay its share of the estimated costs to drill, complete and equip the wells. During the six months ended March 31, 2023, the total costs incurred for the drilling of these two oil wells as of that date was $3,812,000 and thus, the remaining prepaid balance of $481,000 was recorded as “Advances to operators for capital expenditures” on the Company's Condensed Consolidated Balance sheet as of March 31, 2023. The two gross (0.3 net) wells were awaiting tie-in as of March 31, 2023 and began initial flowback in late April 2023.

During the three months ended March 31, 2023, the Company participated in the drilling of three gross (0.9 net) non-operated wells in the Twining area of Alberta, Canada of which one was nearing the end of the drilling phase and two were drilled and awaiting completion as of March 31, 2023. All three are expected to be completed and commence production in the latter part of the three months ending June 30,

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2023. Capital expenditures incurred for the drilling of these wells and Twining facilities in the six months ended March 31, 2023 totaled approximately $2,236,000.

In fiscal 2022, the Company participated in the drilling of one operated and two non-operated for a total of three gross (1.6 net) wells in the Twining area of Alberta, Canada and the capital expenditures incurred for the drilling these wells in the six months ended March 31, 2022 totaled approximately $4,258,000.

Barnwell estimates that investments in oil and natural gas properties for fiscal 2023 will range from $9,500,000 to $10,000,000. This estimated amount may increase or decrease as dictated by cash flows and management's assessment of the oil and natural gas environment and prospects.

Oil and Natural Gas Property Acquisitions

There were no oil and natural gas working interest acquisitions during the six months ended March 31, 2023.

In the quarter ended December 31, 2021, Barnwell acquired working interests in oil and natural gas properties located in the Twining area of Alberta, Canada, for cash consideration of $317,000.

In January 2022, Barnwell acquired additional working interests in oil and natural gas properties located in the Twining area of Alberta, Canada for consideration of $1,246,000. The purchase price per the agreement was adjusted for customary purchase price adjustments to reflect the economic activity from the effective date to the closing date. Barnwell also assumed $1,500,000 in asset retirement obligations associated with the acquisition.

ITEM 4.    CONTROLS AND PROCEDURES

Disclosure Controls and Procedures

We have established disclosure controls and procedures to ensure that material information relating to Barnwell, including its consolidated subsidiaries, is made known to the officers who certify Barnwell’s financial reports and to other members of executive management and the Board of Directors.

As of March 31, 2023, an evaluation was carried out by Barnwell’s Chief Executive Officer and Chief Financial Officer of the effectiveness of Barnwell’s disclosure controls and procedures. Based on that evaluation, the Chief Executive Officer and Chief Financial Officer have concluded that Barnwell’s disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934) were effective as of March 31, 2023 to ensure that information required to be disclosed by Barnwell in the reports that it files or submits under the Securities Exchange Act of 1934 is recorded, processed, summarized and reported within the time periods specified in th3e Securities Exchange Act of 1934 and the rules thereunder.

Changes in Internal Control Over Financial Reporting

There was no change in Barnwell’s internal control over financial reporting during the quarter ended March 31, 2023 that materially affected, or is reasonably likely to materially affect, Barnwell’s internal control over financial reporting.

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PART II - OTHER INFORMATION

ITEM 6.    EXHIBITS

Exhibit Number	Description
10.1	Form of Stock Grant Award Agreement under Barnwell Industries, Inc. 2018 Equity Incentive Plan, as amended.
31.1	Certification of Chief Executive Officer Pursuant To Section 302 of the Sarbanes-Oxley Act of 2002
31.2	Certification of Chief Financial Officer Pursuant To Section 302 of the Sarbanes-Oxley Act of 2002
32	Certification Pursuant To Section 906 of the Sarbanes-Oxley Act of 2002
101.INS	Inline XBRL Instance Document
101.SCH	Inline XBRL Taxonomy Extension Schema Document
101.CAL	Inline XBRL Taxonomy Extension Calculation Linkbase Document
101.DEF	Inline XBRL Taxonomy Extension Definition Linkbase Document
101.LAB	Inline XBRL Taxonomy Extension Label Linkbase Document
101.PRE	Inline XBRL Taxonomy Extension Presentation Linkbase Document
104	Cover Page Interactive Data File (embedded within the Inline XBRL document)

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SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

		BARNWELL INDUSTRIES, INC.
		(Registrant)
Date:	May 15, 2023	/s/ Russell M. Gifford
		Russell M. Gifford
		Executive Vice President,
		Chief Financial Officer,
		Treasurer and Secretary

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INDEX TO EXHIBITS

Exhibit Number	Description
10.1	Form of Stock Grant Award Agreement under Barnwell Industries, Inc. 2018 Equity Incentive Plan, as amended
31.1	Certification of Chief Executive Officer Pursuant To Section 302 of the Sarbanes-Oxley Act of 2002
31.2	Certification of Chief Financial Officer Pursuant To Section 302 of the Sarbanes-Oxley Act of 2002
32	Certification Pursuant To Section 906 of the Sarbanes-Oxley Act of 2002
101.INS	Inline XBRL Instance Document
101.SCH	Inline XBRL Taxonomy Extension Schema Document
101.CAL	Inline XBRL Taxonomy Extension Calculation Linkbase Document
101.DEF	Inline XBRL Taxonomy Extension Definition Linkbase Document
101.LAB	Inline XBRL Taxonomy Extension Label Linkbase Document
101.PRE	Inline XBRL Taxonomy Extension Presentation Linkbase Document
104	Cover Page Interactive Data File (embedded within the Inline XBRL document)

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EX-10.1

Exhibit No. 10.1

BARNWELL INDUSTRIES, INC.

FORM OF STOCK GRANT AWARD AGREEMENT

THIS STOCK GRANT AWARD AGREEMENT (the “Agreement”) is made and entered into by and between Barnwell Industries, Inc., a Delaware corporation (the “Company”) and ________________, an individual and independent director of the Company (“Grantee”), on the ___ day of ______, 20__ (the “Grant Date”), subject to the Barnwell Industries, Inc. 2018 Equity Incentive Plan, as amended (the “Plan”). This Agreement is subject to the terms and conditions of the Plan, which is incorporated herein in its entirety by reference. For all purposes of the Plan, the stock award evidenced by this Agreement is a “Stock Grant” under the Plan and not a Restricted Stock Award. A copy of the Plan has been made available to Grantee. Capitalized terms not otherwise defined in this Agreement shall have the meaning given to such terms in the Plan.

WHEREAS, Grantee is an independent Director of the Company, and in connection therewith, the Company desires to grant unrestricted shares of the Company’s Common Stock (the “Common Stock”) to Grantee, subject to the terms and conditions of this Agreement and the Plan, as partial payment of certain special director fees approved by the Board; and

WHEREAS, Grantee desires to be the holder of shares of Common Stock subject to the terms and conditions of this Agreement;

NOW, THEREFORE, in consideration of the premises, mutual covenants and agreements contained herein, and such other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties hereto, intending to be legally bound hereby, agree as follows:

1. Grant of Common Stock. Effective as of the Grant Date, and subject to the terms and conditions set forth herein, (a) the Company hereby awards and grants to Grantee, ____________ (______) shares of the Common Stock (the “Shares”), and (b) Grantee shall have all rights and privileges of ownership of the Shares subject to this Agreement.

2. Transfer Conditions.

(a) The Shares shall be registered in Grantee’s name as of the Grant Date through a book entry credit in the records of the Company’s transfer agent.

(b) Subject to the conditions set forth in this Agreement, Grantee shall have all the rights of a stockholder with respect to the Shares as of the Grant Date, including any applicable voting and dividend rights

3. Issuance of Certificate.

(a) It is voluntarily agreed by Grantee that he will hold the Shares, either individually or in street name through a brokerage firm. Grantee also agrees that he will not sell, transfer or otherwise dispose of the Shares in any manner that would constitute, in the opinion of counsel for the Company, a violation of any applicable federal or state securities or other laws or regulations, or any rules or regulations of any stock exchange on which the Common Stock is listed. The Company may cause to be issued a stock certificate, registered in the name of the Grantee, evidencing the Shares.

(b) The Company shall direct its transfer agent to deliver to Grantee certificates evidencing the Shares or deliver the shares to a brokerage account as instructed by the Grantee. Grantee will enter into such written representations and agreements as the Company may reasonably request to comply with any securities law or regulation.

4. Grantee’s Representations.

Grantee acknowledges that Grantee has been provided copies of the Plan, relating to the issuance of the Shares, and a copy of the Registration Statement on Form S-8 filed by the Company with respect thereto. The rights and obligations of the Company and the Grantee hereunder are subject to the terms of the Plan and all applicable laws and regulations.

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5. Interpretation. The meaning assigned to each term defined herein shall be equally applicable to both the singular and the plural forms of such term and vice versa, and words denoting either gender shall include both genders as the context requires. Where a word or phrase is defined herein, each of its other grammatical forms shall have a corresponding meaning. The terms “hereof,” “herein” and “herewith” and words of similar import shall, unless otherwise stated, be construed to refer to this Agreement as a whole and not to any particular provision of this Agreement. When a reference is made in this Agreement to a Section, such reference is to a Section of this Agreement unless otherwise specified. The terms “include”, “includes”, and “including” when used in this Agreement shall be deemed to be followed by the words “without limitation”, unless otherwise specified. A reference to any party to this Agreement or any other agreement or document shall include such party’s predecessors, successors, and permitted assigns. Reference to any law means such law as amended, modified, codified, replaced, or reenacted, and all rules and regulations promulgated thereunder. All captions contained in this Agreement are for convenience of reference only, do not form a part of this Agreement, and shall not affect in any way the meaning or interpretation of this Agreement. The parties have participated jointly in the negotiation and drafting of this Agreement; therefore any rule of construction or interpretation otherwise requiring this Agreement to be construed or interpreted against any party by virtue of the authorship of this Agreement shall not apply to the construction and interpretation hereof.

6. Grantee Acknowledgment. Grantee acknowledges that (a) he is knowledgeable and sophisticated as to business matters, including the subject matter of this Agreement, (b) he has read this Agreement and understands its terms and conditions, (c) he has had ample opportunity to discuss this Agreement with his legal counsel and tax advisors prior to execution, and (d) no strict rules of construction shall apply for or against the drafter or any other party. It is the desire of the parties hereto that this Agreement be enforced to the maximum extent permitted by law, and should any provision contained herein be held invalid or otherwise unenforceable by a court of competent jurisdiction, the parties hereby agree and confirm that such provision shall be reformed to create a valid and enforceable provision to the maximum extent permitted by law.

7. Compliance with Code Section 409A. The Shares awarded under this Agreement are not intended to be subject to Section 409A of the U.S. Internal Revenue Code of 1986, as amended (“Section 409A”), including the authoritative guidance issued thereunder, and shall be interpreted and administered to be exempt from the application of Section 409A.

8. Miscellaneous.

(a) Notices. Any notice, instruction, authorization, request or demand required hereunder shall be in writing, and shall be delivered either by personal in-hand delivery, by telecopy or similar facsimile means, by certified or registered mail, return receipt requested, or by courier or delivery service, addressed to the Company at its then current main corporate address, and to Grantee at his address indicated on the Company’s records, or at such other address and number as a party has last previously designated by written notice given to the other party in the manner hereinabove set forth. Notices shall be deemed given when received, if sent by facsimile means (confirmation of such receipt by confirmed facsimile transmission being deemed receipt of communications sent by facsimile means); and when delivered and receipted for (or upon the date of attempted delivery where delivery is refused), if hand-delivered, sent by courier or delivery service, or sent by certified or registered mail, return receipt requested.

(b) Amendment, Termination and Waiver. This Agreement may be amended, modified, terminated or superseded only by written instrument executed by or on behalf of the Company and Grantee. Any waiver of the terms or conditions hereof shall be made only by a written instrument executed and delivered by the party waiving compliance. Any waiver granted by the Company shall be effective only if executed and delivered by a duly authorized executive officer of the Company. The failure of any party at any time or times to require performance of any provisions hereof shall in no manner affect the right to enforce the same. No waiver by any party of any term or condition herein, or the breach thereof, in one or more instances shall be deemed to be, or construed as, a further or continuing waiver of any such condition or breach or a waiver of any other condition or the breach of any other term or condition.

(c) No Guarantee of Tax Consequences. The Company makes no commitment or guarantee that any tax treatment will apply or be available to Grantee or any other person. The Grantee has been advised, and provided with the opportunity, to obtain independent legal and tax advice regarding the grant and disposition of the Shares. Additionally, Grantee agrees to be responsible for and pay all taxes that result from Grantee’s ownership and disposition of the Shares.

(d) Severability. Any provision of this Agreement which is ruled to be invalid or unenforceable in any applicable jurisdiction shall be ineffective, to the extent of such invalidity or unenforceability, without invalidating

2

or rendering unenforceable the remaining provisions hereof; and any such invalidity or unenforceability in any jurisdiction shall not invalidate or render unenforceable such provision in any other jurisdiction.

(e) Supersedes Prior Agreements. This Agreement shall supersede and replace all prior agreements, promises and understandings, oral or written, between the Company and the Grantee regarding the Shares granted hereunder.

(f) Governing Law. The Agreement shall be construed in accordance with the laws of the State of Delaware, without regard to its conflict of law provisions.

(g) Successors and Assigns. This Agreement shall bind, be enforceable by, and inure to the benefit of, the Company and the Grantee and their permitted successors and assigns under the Plan.

9. Survival of Certain Provisions. Wherever appropriate to the intention of the parties hereto, the respective rights and obligations of the parties hereunder shall survive any termination or expiration of this Agreement.

10. Signature in Counterparts. This Agreement may be signed in counterparts, each of which shall be an original, with the same effect as if the signatures thereto and hereto were upon the same instrument. The parties agree that the delivery of this Agreement may be effected by means of an exchange of facsimile signatures which shall be deemed original signatures thereof.

[Signature page follows.]

3

IN WITNESS WHEREOF, this Stock Grant Award Agreement is made and entered into as of the date first written above.

BARNWELL INDUSTRIES, INC.

By:

Name:

Title:

Grantee Signature:

4

EX-31.1

Exhibit No. 31.1

Certifications

I, Alexander C. Kinzler, certify that:

1.I have reviewed this quarterly report on Form 10-Q of Barnwell Industries, Inc.;

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;    

b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c)Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d)Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of registrant’s board of directors (or persons performing the equivalent functions):

a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date:	May 15, 2023	/s/ Alexander C. Kinzler
		Alexander C. Kinzler
		President, Chief Executive Officer, Chief Operating Officer, General Counsel

EX-31.2

Exhibit No. 31.2

Certifications

I, Russell M. Gifford, certify that:

1.I have reviewed this quarterly report on Form 10-Q of Barnwell Industries, Inc.;

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;    

b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c)Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d)Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of registrant’s board of directors (or persons performing the equivalent functions):

a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date:	May 15, 2023	/s/ Russell M. Gifford
		Russell M. Gifford
		Executive Vice President, Chief Financial Officer, Treasurer and Secretary

EX-32

Exhibit No. 32

Barnwell Industries, Inc.

Certification Pursuant to

Section 906 of the Sarbanes-Oxley Act of 2002

In connection with the Quarterly Report of Barnwell Industries, Inc. (the “Company”) on Form 10-Q for the quarter ended March 31, 2023 as filed with the Securities and Exchange Commission (the “Report”), each of the undersigned officers of the Company does hereby certify, pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that to his knowledge:

(1)The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2)The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Dated:	May 15, 2023	/s/ Alexander C. Kinzler
		Alexander C. Kinzler
		Title: President, Chief Executive Officer, Chief Operating Officer, General Counsel
Dated:	May 15, 2023	/s/ Russell M. Gifford
		Name: Russell M. Gifford
		Title: Executive Vice President, Chief Financial Officer, Treasurer and Secretary

The foregoing certification is being furnished solely pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (subsections (a) and (b) of Section 1350, Chapter 63 of Title 18, United States Code) and is not being filed as part of the Form 10-Q or as a separate disclosure document.

A signed original of the written statement required by Section 906 has been provided to the Company and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request.

XML

Cover - shares	6 Months Ended
	Mar. 31, 2023	May 05, 2023
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Mar. 31, 2023
Document Transition Report	false
Entity File Number	1-5103
Entity Registrant Name	BARNWELL INDUSTRIES, INC.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	72-0496921
Entity Address, Address Line One	1100 Alakea Street
Entity Address, Address Line Two	Suite 500
Entity Address, City or Town	Honolulu
Entity Address, State or Province	HI
Entity Address, Postal Zip Code	96813
City Area Code	808
Local Phone Number	531-8400
Title of 12(b) Security	Common Stock, $0.50 par value
Trading Symbol	BRN
Security Exchange Name	NYSEAMER
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		9,956,687
Entity Central Index Key	0000010048
Current Fiscal Year End Date	--09-30
Document Fiscal Year Focus	2023
Document Fiscal Period Focus	Q2
Amendment Flag	false

XML

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands	Mar. 31, 2023	Sep. 30, 2022
Current assets:
Cash and cash equivalents	$ 5,779	$ 12,804
Accounts and other receivables, net of allowance for doubtful accounts of: $249,000 at March 31, 2023; $231,000 at September 30, 2022	2,965	4,361
Income taxes receivable	13	0
Other current assets	3,043	2,932
Total current assets	11,800	20,097
Asset for retirement benefits	3,515	3,385
Operating lease right-of-use assets	94	132
Property and equipment:
Proved properties	71,270	67,883
Advances to operators for capital expenditures	481	0
Unproved properties	4,873	0
Drilling rigs and other property and equipment	6,960	6,923
Total property and equipment	83,584	74,806
Accumulated depletion, impairment, depreciation, and amortization	(63,494)	(61,205)
Total property and equipment, net	20,090	13,601
Total assets	35,499	37,215
Current liabilities:
Accounts payable	1,808	1,462
Accrued capital expenditures	1,565	1,655
Accrued compensation	456	999
Accrued operating and other expenses	1,294	1,576
Current portion of asset retirement obligation	1,453	1,327
Other current liabilities	970	1,908
Total current liabilities	7,546	8,927
Long-term debt	0	44
Operating lease liabilities	69	117
Liability for retirement benefits	1,692	1,649
Asset retirement obligation	7,197	7,129
Deferred income tax liabilities	131	188
Total liabilities	16,635	18,054
Commitments and contingencies
Equity:
Common stock, par value $0.50 per share; authorized, 40,000,000 shares: 10,124,587 issued at March 31, 2023 and September 30, 2022	5,062	5,062
Additional paid-in capital	7,541	7,351
Retained earnings	7,273	7,720
Accumulated other comprehensive income, net	1,256	1,294
Treasury stock, at cost: 167,900 shares at March 31, 2023 and September 30, 2022	(2,286)	(2,286)
Total stockholders’ equity	18,846	19,141
Non-controlling interests	18	20
Total equity	18,864	19,161
Total liabilities and equity	$ 35,499	$ 37,215

XML

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - USD ($) $ in Thousands	Mar. 31, 2023	Sep. 30, 2022
Statement of Financial Position [Abstract]
Accounts receivable, allowance for doubtful accounts	$ 249	$ 231
Common stock, par value (in dollars per share)	$ 0.50	$ 0.50
Common stock, authorized shares (in shares)	40,000,000	40,000,000
Common stock, issued shares (in shares)	10,124,587	10,124,587
Treasury stock, shares (in shares)	167,900	167,900

XML

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Mar. 31, 2023	Mar. 31, 2022
Revenues:
Revenues	$ 5,239	$ 6,679	$ 12,750	$ 12,133
Costs and expenses:
General and administrative	2,050	2,241	4,299	4,071
Depletion, depreciation, and amortization	761	618	1,601	1,101
Foreign currency gain	(2)	0	(80)	0
Gain on sale of assets	0	0	(551)	0
Total costs and expenses	6,477	5,903	13,238	11,112
(Loss) earnings before equity in income of affiliates and income taxes	(1,238)	776	(488)	1,021
Equity in income of affiliates	0	1,760	538	2,967
(Loss) earnings before income taxes	(1,238)	2,536	50	3,988
Income tax (benefit) provision	(3)	138	76	250
Net (loss) earnings	(1,235)	2,398	(26)	3,738
Less: Net earnings attributable to non-controlling interests	2	346	122	613
Net (loss) earnings attributable to Barnwell Industries, Inc.	$ (1,237)	$ 2,052	$ (148)	$ 3,125
Basic net (loss) earnings per common share attributable to Barnwell Industries, Inc. stockholders (in dollars per share)	$ (0.12)	$ 0.21	$ (0.01)	$ 0.33
Diluted net (loss) earnings per common share attributable to Barnwell Industries, Inc. stockholders (in dollars per share)	$ (0.12)	$ 0.21	$ (0.01)	$ 0.33
Weighted-average number of common shares outstanding:
Basic (in shares)	9,956,687	9,570,989	9,956,687	9,507,955
Diluted (in shares)	9,956,687	9,570,989	9,956,687	9,507,955
Oil and natural gas
Revenues:
Revenues	$ 3,686	$ 5,133	$ 8,912	$ 9,053
Costs and expenses:
Costs and expenses	2,267	2,126	4,711	4,042
Depletion, depreciation, and amortization	718	577	1,514	1,013
Contract drilling
Revenues:
Revenues	1,501	818	3,449	1,694
Costs and expenses:
Costs and expenses	1,401	918	3,258	1,898
Depletion, depreciation, and amortization	43	41	86	88
Land investment
Revenues:
Revenues	0	695	265	1,295
Gas processing and other
Revenues:
Revenues	52	33	124	91
Costs and expenses:
Depletion, depreciation, and amortization	$ 0	$ 0	$ 1	$ 0

XML

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME (Unaudited) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Mar. 31, 2023	Mar. 31, 2022
Statement of Comprehensive Income [Abstract]
Net (loss) earnings	$ (1,235)	$ 2,398	$ (26)	$ 3,738
Other comprehensive (loss) income:
Foreign currency translation adjustments, net of taxes of $0	0	12	2	(13)
Retirement plans:
Amortization of accumulated other comprehensive gain into net periodic benefit cost, net of taxes of $0	(20)	0	(40)	0
Total other comprehensive (loss) income	(20)	12	(38)	(13)
Total comprehensive (loss) income	(1,255)	2,410	(64)	3,725
Less: Comprehensive income attributable to non-controlling interests	(2)	(346)	(122)	(613)
Comprehensive (loss) income attributable to Barnwell Industries, Inc.	$ (1,257)	$ 2,064	$ (186)	$ 3,112

XML

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME (Parenthetical) (Unaudited) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Mar. 31, 2023	Mar. 31, 2022
Statement of Comprehensive Income [Abstract]
Foreign currency translation adjustments, taxes	$ 0	$ 0	$ 0	$ 0
Amortization of accumulated other comprehensive gain into net periodic benefit cost, taxes	$ 0	$ 0	$ 0	$ 0

XML

CONDENSED CONSOLIDATED STATEMENTS OF EQUITY (Unaudited) - USD ($) $ in Thousands	Total	Common Stock	Additional Paid-In Capital	Retained Earnings	Accumulated Other Comprehensive Income	Treasury Stock	Non-controlling Interests
Balance, beginning of period (in shares) at Sep. 30, 2021		9,445,625
Balance, beginning of period at Sep. 30, 2021	$ 9,507	$ 4,807	$ 4,590	$ 2,356	$ 32	$ (2,286)	$ 8
Increase (Decrease) in Stockholders' Equity
Net (loss) earnings	3,738			3,125			613
Foreign currency translation adjustments, net of taxes of $0	(13)				(13)
Distributions to non-controlling interests	(557)						(557)
Share-based compensation	427		427
Issuance of common stock for services (in shares)		1,595
Issuance of common stock for services	3		3
Issuance of common stock, net of costs (in shares)		509,467
Issuance of common stock, net of costs	2,356	$ 255	2,101
Retirement plans:
Amortization of accumulated other comprehensive gain into net periodic benefit cost, net of taxes of $0	0
Balance, end of period (in shares) at Mar. 31, 2022		9,956,687
Balance, end of period at Mar. 31, 2022	15,461	$ 5,062	7,121	5,481	19	(2,286)	64
Balance, beginning of period (in shares) at Dec. 31, 2021		9,446,783
Balance, beginning of period at Dec. 31, 2021	10,827	$ 4,807	4,846	3,429	7	(2,286)	24
Increase (Decrease) in Stockholders' Equity
Net (loss) earnings	2,398			2,052			346
Foreign currency translation adjustments, net of taxes of $0	12				12
Distributions to non-controlling interests	(306)						(306)
Share-based compensation	173		173
Issuance of common stock for services (in shares)		437
Issuance of common stock for services	1		1
Issuance of common stock, net of costs (in shares)		509,467
Issuance of common stock, net of costs	2,356	$ 255	2,101
Retirement plans:
Amortization of accumulated other comprehensive gain into net periodic benefit cost, net of taxes of $0	0
Balance, end of period (in shares) at Mar. 31, 2022		9,956,687
Balance, end of period at Mar. 31, 2022	15,461	$ 5,062	7,121	5,481	19	(2,286)	64
Balance, beginning of period (in shares) at Sep. 30, 2022		9,956,687
Balance, beginning of period at Sep. 30, 2022	19,161	$ 5,062	7,351	7,720	1,294	(2,286)	20
Increase (Decrease) in Stockholders' Equity
Net (loss) earnings	(26)			(148)			122
Foreign currency translation adjustments, net of taxes of $0	2				2
Distributions to non-controlling interests	(124)						(124)
Share-based compensation	190		190
Dividends declared, cash paid per share	(299)			(299)
Retirement plans:
Amortization of accumulated other comprehensive gain into net periodic benefit cost, net of taxes of $0	(40)				(40)
Balance, end of period (in shares) at Mar. 31, 2023		9,956,687
Balance, end of period at Mar. 31, 2023	18,864	$ 5,062	7,541	7,273	1,256	(2,286)	18
Balance, beginning of period (in shares) at Dec. 31, 2022		9,956,687
Balance, beginning of period at Dec. 31, 2022	20,210	$ 5,062	7,466	8,660	1,276	(2,286)	32
Increase (Decrease) in Stockholders' Equity
Net (loss) earnings	(1,235)			(1,237)			2
Foreign currency translation adjustments, net of taxes of $0	0
Distributions to non-controlling interests	(16)						(16)
Share-based compensation	75		75
Dividends declared, cash paid per share	(150)			(150)
Retirement plans:
Amortization of accumulated other comprehensive gain into net periodic benefit cost, net of taxes of $0	(20)				(20)
Balance, end of period (in shares) at Mar. 31, 2023		9,956,687
Balance, end of period at Mar. 31, 2023	$ 18,864	$ 5,062	$ 7,541	$ 7,273	$ 1,256	$ (2,286)	$ 18

XML

CONDENSED CONSOLIDATED STATEMENTS OF EQUITY (Parenthetical) (Unaudited) - USD ($) $ in Thousands	3 Months Ended			6 Months Ended
	Mar. 31, 2023	Dec. 31, 2022	Mar. 31, 2022	Mar. 31, 2023	Mar. 31, 2022
Statement of Stockholders' Equity [Abstract]
Foreign currency translation adjustments, taxes	$ 0		$ 0	$ 0	$ 0
Dividends declared, cash paid per share	$ 0.015	$ 0.015		$ 0.030
Amortization of accumulated other comprehensive gain into net periodic benefit cost, taxes	$ 0		$ 0	$ 0	$ 0

XML

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands	6 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Cash flows from operating activities:
Net (loss) earnings	$ (26)	$ 3,738
Adjustments to reconcile net earnings (loss) to net cash provided by operating activities:
Equity in income of affiliates	(538)	(2,967)
Depletion, depreciation, and amortization	1,601	1,101
Gain on sale of assets	(551)	0
Sale of interest in leasehold land, net of fees paid	(233)	(1,137)
Distributions of income from equity investees	319	2,737
Retirement benefits income	(126)	(136)
Non-cash rent income	(12)	0
Accretion of asset retirement obligation	395	351
Deferred income tax benefit	(57)	(2)
Asset retirement obligation payments	(529)	(363)
Share-based compensation expense	190	427
Common stock issued for services	0	3
Retirement plan contributions and payments	(2)	(1)
Bad debt expense	18	44
Foreign currency gain	(80)	0
Increase (decrease) from changes in current assets and liabilities	365	(2,096)
Net cash provided by operating activities	734	1,699
Cash flows from investing activities:
Distribution from equity investees in excess of earnings	219	230
Proceeds from sale of interest in leasehold land, net of fees paid	233	1,137
Proceeds from the sale of contract drilling assets	0	687
Payments to acquire oil and natural gas properties	0	(1,563)
Capital expenditures - oil and natural gas	(7,306)	(5,223)
Capital expenditures - all other	(35)	(9)
Advances to operators for capital expenditures	(481)	0
Issuance of note receivable	0	(400)
Net cash used in investing activities	(7,370)	(5,141)
Cash flows from financing activities:
Distributions to non-controlling interests	(124)	(557)
Payment of dividends	(299)	0
Proceeds from issuance of stock, net of costs	0	2,356
Net cash (used in) provided by financing activities	(423)	1,799
Effect of exchange rate changes on cash and cash equivalents	34	(10)
Net decrease in cash and cash equivalents	(7,025)	(1,653)
Cash and cash equivalents at beginning of period	12,804	11,279
Cash and cash equivalents at end of period	$ 5,779	$ 9,626

XML

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

6 Months Ended

Mar. 31, 2023

Organization, Consolidation and Presentation of Financial Statements [Abstract]

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Principles of Consolidation

The condensed consolidated financial statements include the accounts of Barnwell Industries, Inc. and all majority-owned subsidiaries (collectively referred to herein as “Barnwell,” “we,” “our,” “us,” or the “Company”), including a 77.6%-owned land investment general partnership (Kaupulehu Developments), a 75%-owned land investment partnership (KD Kona 2013 LLLP), and a variable interest entity (Teton Barnwell Fund I, LLC) for which the Company is deemed to be the primary beneficiary. All significant intercompany accounts and transactions have been eliminated.

    Undivided interests in oil and natural gas exploration and production joint ventures are consolidated on a proportionate basis. Barnwell’s investments in both unconsolidated entities in which a significant, but less than controlling, interest is held and in variable interest entities in which the Company is not deemed to be the primary beneficiary are accounted for by the equity method.

Unless otherwise indicated, all references to “dollars” in this Form 10-Q are to U.S. dollars.

Unaudited Interim Financial Information

The accompanying unaudited condensed consolidated financial statements and notes have been prepared by Barnwell in accordance with the rules and regulations of the United States (“U.S.”) Securities and Exchange Commission. Accordingly, certain information and footnote disclosures normally included in the annual financial statements prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) have been condensed or omitted pursuant to those rules and regulations, although the Company believes that the disclosures made are adequate to make the information not misleading. These condensed consolidated financial statements and notes should be read in conjunction with the consolidated financial statements and notes thereto included in Barnwell’s September 30, 2022 Annual Report on Form 10-K, as amended by our Form 10-K/A Amendment No. 1 (our “2022 Annual Report”). The Condensed Consolidated Balance Sheet as of September 30, 2022 has been derived from audited consolidated financial statements.

In the opinion of management, all adjustments (which include only normal recurring adjustments, with the exception of an out-of-period adjustment for the six months ended March 31, 2023 as described below) necessary to present fairly the financial position at March 31, 2023, results of operations, comprehensive (loss) income, and equity for the three and six months ended March 31, 2023 and 2022, and cash flows for the six months ended March 31, 2023 and 2022, have been made. The results of operations for the period ended March 31, 2023 are not necessarily indicative of the operating results for the full year.

Out-of-Period Adjustment

During the three months ended December 31, 2022, errors were identified related to estimates of accrued oil and natural gas sales and accrued professional fees for the year ended September 30, 2022.

Accordingly, the Company recorded out-of-period adjustments in the three months ended December 31, 2022 for the rollover effect of those differences which were immaterial to the results of that quarter. For the six months ended March 31, 2023, the rollover effect of those out-of-period adjustments both decreased oil and natural gas revenues and increased general and administrative expenses by a total of $147,000, which accordingly increased our net loss before income taxes and net loss for the six months ended March 31, 2023 by the same amount. The net earnings per basic and diluted share attributable to Barnwell stockholders would have been $0.02 lower for the year ended September 30, 2022 and the net loss per basic and diluted share attributable to Barnwell stockholders would have been $0.01 lower for the six months ended March 31, 2023 had the amounts been reflected in the periods to which they relate. Based upon an evaluation of all relevant quantitative and qualitative factors, and after considering the provisions of Staff Accounting Bulletin (SAB) No. 99, “Materiality,” and SAB 108, management believes these out-of-period correcting adjustments were not material to the Company’s results for the six months ended March 31, 2023 or the Company’s trend of operating results. We evaluated the impact of these out-of-period adjustments on the results of our previously issued financial statements for the year ended September 30, 2022 and first quarter ended December 31, 2022 and concluded that the impact was not material as well.

Use of Estimates in the Preparation of Condensed Consolidated Financial Statements

The preparation of the condensed consolidated financial statements in conformity with U.S. GAAP requires management of Barnwell to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses and the disclosure of contingent assets and liabilities. Actual results could differ significantly from those estimates. Significant assumptions are required in the valuation of deferred tax assets, asset retirement obligations, share-based payment arrangements, obligations for retirement plans, contract drilling estimated costs to complete, proved oil and natural gas reserves, and the carrying value of other assets, and such assumptions may impact the amount at which such items are recorded.

Significant Accounting Policies

Other than as set forth below, there have been no changes to Barnwell's significant accounting policies as described in the Notes to Consolidated Financial Statements included in Item 8 of the Company's 2022 Annual Report.

Advances to Operators for Capital Expenditures

The Company participates in the drilling of crude oil and natural gas wells with other working interest partners. Due to the capital-intensive nature of crude oil and natural gas drilling activities, the working interest partner responsible for conducting the drilling operations may request advance payments from other working interest partners for their share of the costs. The Company expects such advances to be applied by working interest partners against joint interest billings for its share of drilling operations within 90 days from when the advance is paid.

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(LOSS) EARNINGS PER COMMON SHARE

6 Months Ended

Mar. 31, 2023

Earnings Per Share [Abstract]

(LOSS) EARNINGS PER COMMON SHARE

(LOSS) EARNINGS PER COMMON SHARE

Basic (loss) earnings per share is computed using the weighted-average number of common shares outstanding for the period. Diluted (loss) earnings per share is calculated using the treasury stock method to reflect the assumed issuance of common shares for all potentially dilutive securities, which consist of outstanding stock options. Potentially dilutive shares are excluded from the computation of diluted (loss) earnings per share if their effect is anti-dilutive.

Options to purchase 615,000 shares of common stock were excluded from the computation of diluted shares for the three and six months ended March 31, 2023 and 2022, respectively, as their inclusion would have been anti-dilutive.

Reconciliations between net (loss) earnings attributable to Barnwell stockholders and common shares outstanding of the basic and diluted net (loss) earnings per share computations are detailed in the following tables:

	Three months ended March 31, 2023
	Net Loss (Numerator)		Shares (Denominator)	Per-Share Amount
Basic net loss per share	$	(1,237,000)	9,956,687	$	(0.12)
Effect of dilutive securities -
common stock options	—		—
Diluted net loss per share	$	(1,237,000)	9,956,687	$	(0.12)

	Six months ended March 31, 2023
	Net Loss (Numerator)		Shares (Denominator)	Per-Share Amount
Basic net loss per share	$	(148,000)	9,956,687	$	(0.01)
Effect of dilutive securities -
common stock options	—		—
Diluted net loss per share	$	(148,000)	9,956,687	$	(0.01)

	Three months ended March 31, 2022
	Net Earnings (Numerator)		Shares (Denominator)	Per-Share Amount
Basic net earnings per share	$	2,052,000	9,570,989	$	0.21
Effect of dilutive securities -
common stock options	—		—
Diluted net earnings per share	$	2,052,000	9,570,989	$	0.21

	Six months ended March 31, 2022
	Net Earnings (Numerator)		Shares (Denominator)	Per-Share Amount
Basic net earnings per share	$	3,125,000	9,507,955	$	0.33
Effect of dilutive securities -
common stock options	—		—
Diluted net earnings per share	$	3,125,000	9,507,955	$	0.33

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INVESTMENTS

6 Months Ended

Mar. 31, 2023

Investments, All Other Investments [Abstract]

INVESTMENTS

INVESTMENTS

Investment in Kukio Resort Land Development Partnerships

On November 27, 2013, Barnwell, through a wholly-owned subsidiary, entered into two limited liability limited partnerships, KD Kona 2013 LLLP (“KD Kona”) and KKM Makai, LLLP (“KKM”), and indirectly acquired a 19.6% non-controlling ownership interest in each of KD Kukio Resorts, LLLP, KD Maniniowali, LLLP and KD Kaupulehu, LLLP (“KDK”) for $5,140,000. These entities, collectively referred to hereinafter as the “Kukio Resort Land Development Partnerships,” own certain real estate and development rights interests in the Kukio, Maniniowali and Kaupulehu portions of Kukio Resort, a private residential community on the Kona coast of the island of Hawaii, as well as Kukio Resort’s real estate sales office operations. KDK holds interests in KD Acquisition, LLLP (“KD I”) and KD Acquisition II, LP, formerly KD Acquisition II, LLLP (“KD II”). KD I is the developer of Kaupulehu Lot 4A Increment I (“Increment I”), and KD II is the developer of Kaupulehu Lot 4A Increment II (“Increment II”). Barnwell’s ownership interests in the Kukio Resort Land Development Partnerships is accounted for using the equity method of accounting.

In March 2019, KD II admitted a new development partner, Replay Kaupulehu Development, LLC (“Replay”), a party unrelated to Barnwell, in an effort to move forward with development of the remainder of Increment II at Kaupulehu. KDK and Replay hold ownership interests of 55% and 45%, respectively, of KD II and Barnwell has a 10.8% indirect non-controlling ownership interest in KD II through KDK, which is accounted for using the equity method of accounting. Barnwell continues to have an indirect 19.6% non-controlling ownership interest in KD Kukio Resorts, LLLP, KD Maniniowali, LLLP, and KD I.

The partnerships derive income from the sale of residential parcels in Increment I, of which only one lot remains to be sold as of March 31, 2023, as well as from commissions on real estate sales by the real estate sales office and revenues resulting from the sale of private club memberships.

Increment II is not yet under development, and there is no assurance that development of such acreage will occur. No definitive development plans have been made by KD II, the developer of Increment II, as of the date of this report.

    Barnwell has the right to receive distributions from the Kukio Resort Land Development Partnerships via its non-controlling interest in KD Kona and KKM, based on its respective partnership sharing ratios of 75% and 34.45%, respectively. No cash distributions were received during the three months ended March 31, 2023. During the three months ended March 31, 2022, Barnwell received cash distributions of $1,760,000 from the Kukio Resort Land Development Partnerships resulting in a net amount of $1,568,000 after distributing $192,000 to non-controlling interests. During the six months

ended March 31, 2023, Barnwell received cash distributions of $538,000 from the Kukio Resort Land Development Partnerships resulting in a net amount of $478,000, after distributing $60,000 to non-controlling interests. During the six months ended March 31, 2022, Barnwell received cash distributions of $2,967,000 from the Kukio Resort Land Development Partnerships resulting in a net amount of $2,643,000 after distributing $324,000 to non-controlling interests.

Equity in income of affiliates was nil and $538,000 for the three and six months ended March 31, 2023, respectively, as compared to equity in income of affiliates of $1,760,000 and $2,967,000 for the three and six months ended March 31, 2022, respectively.

Summarized financial information for the Kukio Resort Land Development Partnerships is as follows:

	Three months ended March 31,
	2023		2022
Revenue	$	1,284,000	$	9,665,000
Gross profit	$	738,000	$	6,433,000
Net (loss) earnings	$	(82,000)	$	5,673,000

	Six months ended March 31,
	2023		2022
Revenue	$	4,996,000	$	18,918,000
Gross profit	$	3,160,000	$	13,147,000
Net earnings	$	1,225,000	$	11,636,000

In the quarter ended June 30, 2021, the Company received cumulative distributions from the Kukio Resort Land Development Partnerships in excess of our investment balance and in accordance with applicable accounting guidance, the Company suspended its equity method earnings recognition and the Kukio Resort Land Development Partnerships investment balance was reduced to zero with the distributions received in excess of our investment balance recorded as equity in income of affiliates because the distributions are not refundable by agreement or by law and the Company is not liable for the obligations of or otherwise committed to provide financial support to the Kukio Resort Land Development Partnerships. The Company will record future equity method earnings only after our share of the Kukio Resort Land Development Partnerships’ cumulative earnings in excess of distributions during the suspended period exceeds our share of the Kukio Resort Land Development Partnerships’ income recognized for the excess distributions, and during this suspended period any distributions received will be recorded as equity in income of affiliates. Accordingly, the amount of equity in income of affiliates recognized in the six months ended March 31, 2023 was equivalent to the $538,000 of distributions received in that period.

Cumulative distributions received from the Kukio Resort Land Development Partnerships in excess of our investment balance was $1,211,000 at March 31, 2023 and $958,000 at September 30, 2022.

Sale of Interest in Leasehold Land

Kaupulehu Developments has the right to receive payments from KD I and KD II resulting from the sale of lots and/or residential units within Increment I and Increment II by KD I and KD II (see Note 17).

With respect to Increment I, Kaupulehu Developments is entitled to receive payments from KD I based on 10% of the gross receipts from KD I’s sales of single-family residential lots in Increment I. One single-family lot was sold during the six months ended March 31, 2023 and one single-family lot, of the 79 lots developed within Increment I, remained to be sold as of March 31, 2023.

    The following table summarizes the Increment I revenues from KD I and the amount of fees directly related to such revenues:

	Three months ended March 31,				Six months ended March 31,
	2023		2022		2023		2022
Sale of interest in leasehold land:
Revenues - sale of interest in leasehold land	$	—	$	695,000	$	265,000	$	1,295,000
Fees - included in general and administrative expenses	—		(85,000)		(32,000)		(158,000)
Sale of interest in leasehold land, net of fees paid	$	—	$	610,000	$	233,000	$	1,137,000

There is no assurance with regards to the amounts of future payments from Increment I or Increment II to be received, or that the remaining acreage within Increment II will be developed. No definitive development plans have been made by KD II, the developer of Increment II, as of the date of this report.

Investment in Leasehold Land Interest - Lot 4C

Kaupulehu Developments holds an interest in an area of approximately 1,000 acres of vacant leasehold land zoned conservation located adjacent to Lot 4A, which currently has no development potential without both a development agreement with the lessor and zoning reclassification. The lease terminates in December 2025.

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CONSOLIDATED VARIABLE INTEREST ENTITY

6 Months Ended

Mar. 31, 2023

Variable Interest Entity, Primary Beneficiary, Does Not Hold Majority Voting Interest, Disclosures [Abstract]

CONSOLIDATED VARIABLE INTEREST ENTITY

CONSOLIDATED VARIABLE INTEREST ENTITY

In February 2021, Barnwell Industries, Inc. established a new wholly-owned subsidiary named BOK Drilling, LLC (“BOK”) for the purpose of indirectly investing in oil and natural gas exploration and development in Oklahoma. BOK and Gros Ventre Partners, LLC (“Gros Ventre”) entered into the Limited Liability Agreement (the “Teton Operating Agreement”) of Teton Barnwell Fund I, LLC (“Teton Barnwell”), an entity formed for the purpose of directly entering into such oil and natural gas investments. Under the terms of the Teton Operating Agreement, the profits of Teton Barnwell are split between BOK and Gros Ventre at 98% and 2%, respectively, and as the manager of Teton Barnwell, Gros Venture is paid an annual asset management fee equal to 1% of the cumulative capital contributions made to Teton Barnwell as compensation for its management services. BOK is responsible for 100% of the capital contributions made to Teton Barnwell.

The Company has determined that Teton Barnwell is a variable interest entity (“VIE”) as the entity is structured with non-substantive voting rights and that the Company is the primary beneficiary. This is due to the fact that even though Teton Barnwell has a unanimous consent voting structure, BOK is responsible for 100% of the capital contributions required to fund Teton Barnwell’s future oil exploration and development investments pursuant to the Teton Operating Agreement and thus, BOK has the power to

steer the decisions that most significantly impact Teton Barnwell’s economic performance and has the obligation to absorb any potential losses that could be significant to Teton Barnwell. As BOK is the primary beneficiary of the VIE, Teton Barnwell’s operating results, assets and liabilities are consolidated by the Company.

The following table summarizes the carrying value of the assets and liabilities of Teton Barnwell that are consolidated by the Company. Intercompany balances are eliminated in consolidation and thus, are not reflected in the table below.

	March 31, 2023		September 30, 2022
ASSETS
Cash and cash equivalents	$	15,000	$	623,000
Accounts and other receivables	298,000		606,000
Oil and natural gas properties, full cost method of accounting:
Proved properties, net	587,000		655,000
Total assets	$	900,000	$	1,884,000
LIABILITIES
Accounts payable	$	5,000	$	15,000
Accrued operating and other expenses	15,000		26,000
Total liabilities	$	20,000	$	41,000

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ASSET HELD FOR SALE	6 Months Ended
	Mar. 31, 2023
Property, Plant and Equipment Assets Held-for-sale Disclosure [Abstract]
ASSET HELD FOR SALE	ASSET HELD FOR SALE In September 2022, the Company entered into a purchase and sale agreement with an independent third party for the sale of a contract drilling segment drilling rig and received a payment of $551,000, net of related costs. At September 30, 2022, the legal title for the drilling rig had not yet transferred to the buyer and therefore, the Company did not record a sale during the year ended September 30, 2022. The proceeds received from the buyer was recognized as a deposit and recorded in “Other Current Liabilities” on the Company's Consolidated Balance Sheet at September 30, 2022. No amount was recorded as assets held for sale at September 30, 2022 as the drilling rig was fully depreciated and therefore had a net book value of zero. In October 2022, the legal title for the drilling rig was transferred to the buyer and as a result, the Company recognized a $551,000 gain on the sale of the drilling rig during the six months ended March 31, 2023.

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OIL AND NATURAL GAS PROPERTIES

6 Months Ended

Mar. 31, 2023

Oil and Natural Gas Properties [Abstract]

OIL AND NATURAL GAS PROPERTIES

OIL AND NATURAL GAS PROPERTIES

Oil and Natural Gas Investments

In December 2022, Barnwell Texas, LLC (“Barnwell Texas”), a new wholly-owned subsidiary of the Company, entered into a purchase and sale agreement with an independent third party whereby Barnwell Texas acquired a 22.3% non-operated working interest in oil and natural gas leasehold acreage in the Permian Basin in Texas for cash consideration of $806,000. In connection with the purchase of such leasehold interests, Barnwell Texas acquired a 15.4% non-operated working interest in two oil wells in the Wolfcamp Formation in Loving and Ward Counties, Texas and made a pre-payment of $4,293,000 to pay its share of the estimated costs to drill, complete and equip the wells. During the six months ended March 31, 2023, the total costs incurred for the drilling of these two oil wells as of that date was $3,812,000 and thus, the remaining prepaid balance of $481,000 was recorded as “Advances to operators for capital expenditures” on the Company's Condensed Consolidated Balance sheet as of March 31, 2023.

Additionally, in connection with the agreement, the Company is obligated to pay a broker’s fee of 5.0% of the capital invested under this arrangement to Four Pines Exploration LLC - Exploration - Series 1 (“Four Pines”). Four Pines is controlled by Mr. Colin O’Farrell who is an affiliate of Teton Barnwell (see Note 17 for additional details). As of March 31, 2023, the Company has paid $255,000 in broker fees to Four Pines related to this arrangement.

Oil and Natural Gas Acquisitions

There were no oil and natural gas working interest acquisitions during the six months ended March 31, 2023.

In the quarter ended December 31, 2021, Barnwell acquired working interests in oil and natural gas properties located in the Twining area of Alberta, Canada, for cash consideration of $317,000.

In January 2022, Barnwell acquired additional working interests in oil and natural gas properties located in the Twining area of Alberta, Canada for consideration of $1,246,000. The purchase price per the agreement was adjusted for customary purchase price adjustments to reflect the economic activity from the effective date to the closing date. Barnwell also assumed $1,500,000 in asset retirement obligations associated with the acquisition.

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RETIREMENT PLANS

6 Months Ended

Mar. 31, 2023

Retirement Benefits [Abstract]

RETIREMENT PLANS

RETIREMENT PLANS

Barnwell sponsors a noncontributory defined benefit pension plan (“Pension Plan”) covering substantially all of its U.S. employees and a noncontributory Supplemental Executive Retirement Plan (“SERP”), which covers certain current and former employees of Barnwell for amounts exceeding the limits allowed under the Pension Plan.

The following tables detail the components of net periodic benefit (income) cost for Barnwell’s retirement plans:

	Pension Plan				SERP
	Three months ended March 31,
	2023		2022		2023		2022
Interest cost	$	101,000	$	72,000	$	22,000	$	15,000
Expected return on plan assets	(166,000)		(155,000)		—		—
Amortization of net actuarial gain	—		—		(20,000)		—
Net periodic benefit (income) cost	$	(65,000)	$	(83,000)	$	2,000	$	15,000

	Pension Plan				SERP
	Six months ended March 31,
	2023		2022		2023		2022
Interest cost	$	203,000	$	145,000	$	44,000	$	30,000
Expected return on plan assets	(333,000)		(311,000)		—		—
Amortization of net actuarial gain	—		—		(40,000)		—
Net periodic benefit (income) cost	$	(130,000)	$	(166,000)	$	4,000	$	30,000

The net periodic benefit (income) cost is included in “General and administrative” expenses in the Company's Condensed Consolidated Statements of Operations.

Currently, no contributions are expected to be made to the Pension Plan during fiscal 2023. The SERP plan is unfunded and Barnwell funds benefits when payments are made. Expected payments under the SERP for fiscal 2023 are not material. Fluctuations in actual equity market returns as well as changes in general interest rates will result in changes in the market value of plan assets and may result in increased or decreased retirement benefits costs and contributions in future periods.

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INCOME TAXES

6 Months Ended

Mar. 31, 2023

Income Tax Disclosure [Abstract]

INCOME TAXES

INCOME TAXES

The components of (loss) earnings before income taxes, after adjusting the (loss) earnings for non-controlling interests, are as follows:

	Three months ended March 31,				Six months ended March 31,
	2023		2022		2023		2022
United States	$	(1,275,000)	$	1,016,000	$	(1,257,000)	$	1,908,000
Canada	35,000		1,174,000		1,185,000		1,467,000
	$	(1,240,000)	$	2,190,000	$	(72,000)	$	3,375,000

The components of the income tax (benefit) provision are as follows:

	Three months ended March 31,				Six months ended March 31,
	2023		2022		2023		2022
Current	$	42,000	$	172,000	$	133,000	$	252,000
Deferred	(45,000)		(34,000)		(57,000)		(2,000)
	$	(3,000)	$	138,000	$	76,000	$	250,000

Consolidated taxes do not bear a customary relationship to pretax results due primarily to the fact that the Company is taxed separately in Canada based on Canadian source operations and in the U.S. based on consolidated operations, and essentially all deferred tax assets, net of relevant offsetting deferred tax liabilities, are not estimated to have a future benefit as tax credits or deductions. Income from our non-controlling interest in the Kukio Resort Land Development Partnerships is treated as non-unitary for state of Hawaii unitary filing purposes, thus unitary Hawaii losses provide limited sheltering of such non-unitary income. Income from our investment in the Oklahoma oil venture is 100% allocable to Oklahoma. As such, Barnwell receives no benefit from consolidated or unitary losses and, therefore, is subject to Oklahoma state taxes. In addition, net operating loss carryforwards, the benefit of which had not previously been recognized due to the Company's continuing full valuation allowance, are estimated to be partially utilized in the Canadian tax jurisdiction in the current year periods as the recognized benefit is now considered more likely to occur than not.

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REVENUE FROM CONTRACTS WITH CUSTOMERS

6 Months Ended

Mar. 31, 2023

Revenue from Contract with Customer [Abstract]

REVENUE FROM CONTRACTS WITH CUSTOMERS

REVENUE FROM CONTRACTS WITH CUSTOMERS

Disaggregation of Revenue

    The following tables provide information about disaggregated revenue by revenue streams, reportable segments, geographical region, and timing of revenue recognition for the three and six months ended March 31, 2023 and 2022.

		Three months ended March 31, 2023
		Oil and natural gas		Contract drilling		Land investment		Other		Total
Revenue streams:
	Oil	$	2,789,000	$	—	$	—	$	—	$	2,789,000
	Natural gas	616,000		—		—		—		616,000
	Natural gas liquids	281,000		—		—		—		281,000
	Drilling and pump	—		1,501,000		—		—		1,501,000
	Other	—		—		—		29,000		29,000
	Total revenues before interest income	$	3,686,000	$	1,501,000	$	—	$	29,000	$	5,216,000
Geographical regions:
	United States	$	309,000	$	1,501,000	$	—	$	6,000	$	1,816,000
	Canada	3,377,000		—		—		23,000		3,400,000
	Total revenues before interest income	$	3,686,000	$	1,501,000	$	—	$	29,000	$	5,216,000
Timing of revenue recognition:
	Goods transferred at a point in time	$	3,686,000	$	—	$	—	$	29,000	$	3,715,000
	Services transferred over time	—		1,501,000		—		—		1,501,000
	Total revenues before interest income	$	3,686,000	$	1,501,000	$	—	$	29,000	$	5,216,000

		Three months ended March 31, 2022
		Oil and natural gas		Contract drilling		Land investment		Other		Total
Revenue streams:
	Oil	$	3,657,000	$	—	$	—	$	—	$	3,657,000
	Natural gas	859,000		—		—		—		859,000
	Natural gas liquids	617,000		—		—		—		617,000
	Drilling and pump	—		818,000		—		—		818,000
	Contingent residual payments	—		—		695,000		—		695,000
	Other	—		—		—		32,000		32,000
	Total revenues before interest income	$	5,133,000	$	818,000	$	695,000	$	32,000	$	6,678,000
Geographical regions:
	United States	$	992,000	$	818,000	$	695,000	$	—	$	2,505,000
	Canada	4,141,000		—		—		32,000		4,173,000
	Total revenues before interest income	$	5,133,000	$	818,000	$	695,000	$	32,000	$	6,678,000
Timing of revenue recognition:
	Goods transferred at a point in time	$	5,133,000	$	—	$	695,000	$	32,000	$	5,860,000
	Services transferred over time	—		818,000		—		—		818,000
	Total revenues before interest income	$	5,133,000	$	818,000	$	695,000	$	32,000	$	6,678,000

		Six months ended March 31, 2023
		Oil and natural gas		Contract drilling		Land investment		Other		Total
Revenue streams:
	Oil	$	6,273,000	$	—	$	—	$	—	$	6,273,000
	Natural gas	1,918,000		—		—		—		1,918,000
	Natural gas liquids	721,000		—		—		—		721,000
	Drilling and pump	—		3,449,000		—		—		3,449,000
	Contingent residual payments	—		—		265,000		—		265,000
	Other	—		—		—		72,000		72,000
	Total revenues before interest income	$	8,912,000	$	3,449,000	$	265,000	$	72,000	$	12,698,000
Geographical regions:
	United States	$	826,000	$	3,449,000	$	265,000	$	8,000	$	4,548,000
	Canada	8,086,000		—		—		64,000		8,150,000
	Total revenues before interest income	$	8,912,000	$	3,449,000	$	265,000	$	72,000	$	12,698,000
Timing of revenue recognition:
	Goods transferred at a point in time	$	8,912,000	$	—	$	265,000	$	72,000	$	9,249,000
	Services transferred over time	—		3,449,000		—		—		3,449,000
	Total revenues before interest income	$	8,912,000	$	3,449,000	$	265,000	$	72,000	$	12,698,000

		Six months ended March 31, 2022
		Oil and natural gas		Contract drilling		Land investment		Other		Total
Revenue streams:
	Oil	$	6,325,000	$	—	$	—	$	—	$	6,325,000
	Natural gas	1,708,000		—		—		—		1,708,000
	Natural gas liquids	1,020,000		—		—		—		1,020,000
	Drilling and pump	—		1,694,000		—		—		1,694,000
	Contingent residual payments	—		—		1,295,000		—		1,295,000
	Other	—		—		—		89,000		89,000
	Total revenues before interest income	$	9,053,000	$	1,694,000	$	1,295,000	$	89,000	$	12,131,000
Geographical regions:
	United States	$	1,956,000	$	1,694,000	$	1,295,000	$	4,000	$	4,949,000
	Canada	7,097,000		—		—		85,000		7,182,000
	Total revenues before interest income	$	9,053,000	$	1,694,000	$	1,295,000	$	89,000	$	12,131,000
Timing of revenue recognition:
	Goods transferred at a point in time	$	9,053,000	$	—	$	1,295,000	$	89,000	$	10,437,000
	Services transferred over time	—		1,694,000		—		—		1,694,000
	Total revenues before interest income	$	9,053,000	$	1,694,000	$	1,295,000	$	89,000	$	12,131,000

Contract Balances

    The following table provides information about accounts receivables, contract assets and contract liabilities from contracts with customers:

	March 31, 2023		September 30, 2022
Accounts receivables from contracts with customers	$	2,710,000	$	4,038,000
Contract assets	698,000		580,000
Contract liabilities	613,000		1,087,000

    Accounts receivables from contracts with customers are included in “Accounts and other receivables, net of allowance for doubtful accounts,” and contract assets, which includes costs and estimated earnings in excess of billings and retainage, are included in “Other current assets.” Contract liabilities, which includes billings in excess of costs and estimated earnings are included in “Other current liabilities” in the accompanying Condensed Consolidated Balance Sheets.

    Retainage, included in contract assets, represents amounts due from customers, but where payments are withheld contractually until certain construction milestones are met. Amounts retained typically range from 5% to 10% of the total invoice, up to contractually-specified maximums. The Company classifies as a current asset those retainages that are expected to be collected in the next twelve months.

    Contract assets represent the Company’s rights to consideration in exchange for services transferred to a customer that have not been billed as of the reporting date. The Company’s rights are generally unconditional at the time its performance obligations are satisfied.

    When the Company receives consideration or such consideration is unconditionally due from a customer prior to transferring goods or services to the customer under the terms of a sales contract, the Company records deferred revenue, which represents a contract liability. Such deferred revenue typically results from billings in excess of costs and estimated earnings on uncompleted contracts. As of March 31, 2023 and September 30, 2022, the Company had $613,000 and $1,087,000, respectively, included in “Other current liabilities” on the balance sheets for those performance obligations expected to be completed in the next twelve months.

    During the six months ended March 31, 2023 and 2022, the amount of revenue recognized that was previously included in contract liabilities as of the beginning of the respective period was $969,000 and $308,000, respectively.

    Contracts are sometimes modified for a change in scope or other requirements. The Company considers contract modifications to exist when the modification either creates new or changes the existing enforceable rights and obligations. Most of the Company’s contract modifications are for goods and services that are not distinct from the existing performance obligations. The effect of a contract modification on the transaction price, and the measure of progress for the performance obligation to which it relates, is recognized as an adjustment to revenue (either as an increase or decrease) on a cumulative catchup basis.

Performance Obligations

    The Company’s remaining performance obligations for drilling and pump installation contracts (hereafter referred to as “backlog”) represent the unrecognized revenue value of the Company’s contract commitments. The Company’s backlog may vary significantly each reporting period based on the timing of major new contract commitments. In addition, our customers have the right, under some infrequent circumstances, to terminate contracts or defer the timing of the Company’s services and their payments to us. Nearly all of the Company's contract drilling segment contracts have original expected durations of one year or less. At March 31, 2023, the Company had five contract drilling jobs with original expected durations of greater than one year. For these contracts, 85% of the remaining performance obligation of $4,292,000 is expected to be recognized in the next twelve months and the remaining, thereafter.

Contract Fulfillment Costs

    Preconstruction costs, which include costs such as set-up and mobilization, are capitalized and allocated across all performance obligations and deferred and amortized over the contract term on a progress towards completion basis. As of March 31, 2023 and September 30, 2022, the Company had $619,000 and $689,000, respectively, in unamortized preconstruction costs related to contracts that were not completed. During the three and six months ended March 31, 2023 and 2022, the amortization of preconstruction costs related to contracts were not material and were included in the accompanying Condensed Consolidated Statements of Operations. Additionally, no impairment charges in connection with the Company’s preconstruction costs were recorded during the three and six months ended March 31, 2023 and 2022.

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SEGMENT INFORMATION

6 Months Ended

Mar. 31, 2023

Segment Reporting [Abstract]

SEGMENT INFORMATION

SEGMENT INFORMATION

Barnwell operates the following segments: 1) acquiring, developing, producing and selling oil and natural gas in Canada and the U.S. (oil and natural gas); 2) investing in land interests in Hawaii (land investment); and 3) drilling wells and installing and repairing water pumping systems in Hawaii (contract drilling).

The following table presents certain financial information related to Barnwell’s reporting segments. All revenues reported are from external customers with no intersegment sales or transfers.

	Three months ended March 31,				Six months ended March 31,
	2023		2022		2023		2022
Revenues:
Oil and natural gas	$	3,686,000	$	5,133,000	$	8,912,000	$	9,053,000
Contract drilling	1,501,000		818,000		3,449,000		1,694,000
Land investment	—		695,000		265,000		1,295,000
Other	29,000		32,000		72,000		89,000
Total before interest income	5,216,000		6,678,000		12,698,000		12,131,000
Interest income	23,000		1,000		52,000		2,000
Total revenues	$	5,239,000	$	6,679,000	$	12,750,000	$	12,133,000
Depletion, depreciation, and amortization:
Oil and natural gas	$	718,000	$	577,000	$	1,514,000	$	1,013,000
Contract drilling	43,000		41,000		86,000		88,000
Other	—		—		1,000		—
Total depletion, depreciation, and amortization	$	761,000	$	618,000	$	1,601,000	$	1,101,000
Operating profit (loss) (before general and administrative expenses):
Oil and natural gas	$	701,000	$	2,430,000	$	2,687,000	$	3,998,000
Contract drilling	57,000		(141,000)		105,000		(292,000)
Land investment	—		695,000		265,000		1,295,000
Other	29,000		32,000		71,000		89,000
Gain on sale of assets	—		—		551,000		—
Total operating profit	787,000		3,016,000		3,679,000		5,090,000
Equity in income of affiliates:
Land investment	—		1,760,000		538,000		2,967,000
General and administrative expenses	(2,050,000)		(2,241,000)		(4,299,000)		(4,071,000)
Foreign currency gain	2,000		—		80,000		—
Interest income	23,000		1,000		52,000		2,000
(Loss) earnings before income taxes	$	(1,238,000)	$	2,536,000	$	50,000	$	3,988,000

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ACCUMULATED OTHER COMPREHENSIVE INCOME

6 Months Ended

Mar. 31, 2023

Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]

ACCUMULATED OTHER COMPREHENSIVE INCOME

ACCUMULATED OTHER COMPREHENSIVE INCOME

The changes in each component of accumulated other comprehensive income were as follows:

	Three months ended March 31,				Six months ended March 31,
	2023		2022		2023		2022
Foreign currency translation:
Beginning accumulated foreign currency translation	$	224,000	$	237,000	$	222,000	$	262,000
Change in cumulative translation adjustment before reclassifications	—		12,000		2,000		(13,000)
Income taxes	—		—		—		—
Net current period other comprehensive income (loss)	—		12,000		2,000		(13,000)
Ending accumulated foreign currency translation	224,000		249,000		224,000		249,000
Retirement plans:
Beginning accumulated retirement plans benefit income (cost)	1,052,000		(230,000)		1,072,000		(230,000)
Amortization of net actuarial gain	(20,000)		—		(40,000)		—
Income taxes	—		—		—		—
Net current period other comprehensive (loss)	(20,000)		—		(40,000)		—
Ending accumulated retirement plans benefit income (cost)	1,032,000		(230,000)		1,032,000		(230,000)
Accumulated other comprehensive income, net of taxes	$	1,256,000	$	19,000	$	1,256,000	$	19,000

    The amortization of net actuarial gain for the retirement plans are included in the computation of net periodic benefit (income) cost which is a component of “General and administrative” expenses on the accompanying Condensed Consolidated Statements of Operations (see Note 7 for additional details).

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FAIR VALUE MEASUREMENTS

6 Months Ended

Mar. 31, 2023

Fair Value Disclosures [Abstract]

FAIR VALUE MEASUREMENTS

FAIR VALUE MEASUREMENTS

The carrying values of cash and cash equivalents, accounts and other receivables, accounts payable and accrued current liabilities approximate their fair values due to the short-term nature of the instruments.

Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis

The estimated fair values of oil and natural gas properties and the asset retirement obligation incurred in the drilling of oil and natural gas wells or assumed in the acquisitions of additional oil and natural gas working interests are based on an estimated discounted cash flow model and market assumptions. The significant Level 3 assumptions used in the calculation of estimated discounted cash flows included future commodity prices, projections of estimated quantities of oil and natural gas reserves, expectations for timing and amount of future development, operating and asset retirement costs, projections of future rates of production, expected recovery rates and risk adjusted discount rates.

Barnwell estimates the fair value of asset retirement obligations based on the projected discounted future cash outflows required to settle abandonment and restoration liabilities. Such an estimate requires assumptions and judgments regarding the existence of liabilities, the amount and timing of cash outflows required to settle the liability, what constitutes adequate restoration, inflation factors, credit adjusted

discount rates, and consideration of changes in legal, regulatory, environmental and political environments. Abandonment and restoration cost estimates are determined in conjunction with Barnwell’s reserve engineers based on historical information regarding costs incurred to abandon and restore similar well sites, information regarding current market conditions and costs, and knowledge of subject well sites and properties. Asset retirement obligation fair value measurements in the current period were Level 3 fair value measurements.

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DEBT

6 Months Ended

Mar. 31, 2023

Debt Disclosure [Abstract]

DEBT

DEBT

Canada Emergency Business Account Loan

In the quarter ended December 31, 2020, the Company’s Canadian subsidiary, Barnwell of Canada, received a loan of CAD$40,000 (in Canadian dollars) under the Canada Emergency Business Account (“CEBA”) loan program for small businesses. In the quarter ended March 31, 2021, the Company applied for an increase to our CEBA loan and received an additional CAD$20,000 for a total loan amount received of CAD$60,000 ($44,000) under the program. In January 2022, the Canadian government announced the extension of the CEBA loan repayment deadline and interest-free period from December 31, 2022 to December 31, 2023. Accordingly, the CEBA loan is interest-free with no principal payments required until December 31, 2023, after which the remaining loan balance is converted to a two year term loan at 5% annual interest paid monthly. If the Company repays 66.7% of the principal amount prior to December 31, 2023, there will be loan forgiveness of 33.3% up to a maximum of CAD$20,000. The current loan balance of $44,000 is included in “Other current liabilities” in the Company's Condensed Consolidated Balance sheet at March 31, 2023.

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STOCKHOLDERS' EQUITY

6 Months Ended

Mar. 31, 2023

Stockholders' Equity Note [Abstract]

STOCKHOLDERS' EQUITY

STOCKHOLDERS' EQUITY

Cash Dividends

In December 2022, the Company's Board of Directors declared a cash dividend of $0.015 per share that was paid on January 11, 2023 to stockholders of record on December 27, 2022.

In February 2023, the Company's Board of Directors declared a cash dividend of $0.015 per share that was paid on March 13, 2023 to stockholders of record on February 23, 2023.

No dividends were declared or paid during the six months ended March 31, 2022.

The Tax Benefits Preservation Plan

On October 17, 2022, the Board of Directors of the Company adopted a Tax Benefits Preservation Plan (the “Tax Plan”) designed to protect the availability of the Company’s existing net operating loss carryforwards and certain other tax attributes. To implement the Tax Plan, the Board of Directors declared a dividend of one right (a “Right”) for each outstanding share of the Company's common stock. The Rights were issued to stockholders of record at the close of business on October 27, 2022 pursuant to the Tax Plan. The Rights are exercisable if a person or group of persons acquires 4.95% or more of the Company’s common stock. The Rights are also exercisable if a person or group of persons that already owns 4.95% or more of the Company’s common stock acquires an additional share other than as a result of a dividend or a stock split. Existing stockholders that beneficially own in excess of 4.95% of the Company’s common stock are “grandfathered in” at their current ownership level. If the Rights become exercisable, all holders of Rights, other than the person or group of persons triggering the Rights, will be entitled to purchase shares of the Company’s common stock at a 50% discount. Rights held by the person

or group of persons triggering the Rights will become void and will not be exercisable.

On January 25, 2023, the Tax Plan was terminated by the Board of Directors and as a result, all Rights distributed to holders of the Company's common stock expired at the time of termination.

At The Market Offering

On March 16, 2021, the Company entered into a Sales Agreement (the “Sales Agreement”) with A.G.P./Alliance Global Partners (“A.G.P,”), with respect to an at-the-market offering program (“ATM”) pursuant to which the Company may offer and sell, from time to time, shares of its common stock, par value $0.50 per share, having an aggregate sales price of up to $25 million (subject to certain limitations set forth in the Sales Agreement and applicable securities laws, rules and regulations), through or to A.G.P as the Company’s sales agent or as principal. Sales of our common stock under the ATM, if any, will be made by any methods deemed to be “at the market offerings” as defined in Rule 415(a)(4) under the Securities Act, including sales made directly on the NYSE American, on any other existing trading market for our Common Stock, or to or through a market maker. Shares of common stock sold under the ATM are offered pursuant to the Company’s Registration Statement on Form S-3 (File No. 333-254365), filed with the Securities and Exchange Commission on March 16, 2021, and declared effective on March 26, 2021 (the "Registration Statement”), and the prospectus dated March 26, 2021, included in the Registration Statement.

During the six months ended March 31, 2022, the Company sold 509,467 shares of common stock resulting in net proceeds of $2,356,000 after commissions and fees of $75,000 and ATM-related professional services of $22,000. In August 2022, the Company’s Board of Directors suspended the sales of our common stock under the ATM until further notice.

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CONTINGENCIES

6 Months Ended

Mar. 31, 2023

Loss Contingency [Abstract]

CONTINGENCIES

CONTINGENCIES

Legal and Regulatory Matters

Barnwell is routinely involved in disputes with third parties that occasionally require litigation. In addition, Barnwell is required to maintain compliance with all current governmental controls and regulations in the ordinary course of business. Barnwell’s management is not aware of any claims or litigation involving Barnwell that are likely to have a material adverse effect on its results of operations, financial position or liquidity.

In the quarter ended December 31, 2021, it was determined that a contract drilling segment well completed in the period did not meet the contract specifications for plumbness under a gyroscopic plumbness test which the contract required. While the well did pass the cage plumbness test, the contract uses the gyroscopic test as the measure of plumbness. Barnwell and the customer currently have an arrangement where Barnwell will provide for centralizers, armored cabling and a pump installation and removal test to confirm that plumbness is satisfactory. Barnwell’s management believes the plumbness deviation is not impactful to the performance of the submersible pumps that will be installed in the well. Accordingly, while costs for the centralizers, armored cabling and the pump installation and removal test have been accrued, no accrual has been recorded as of March 31, 2023 for any further costs related to this contract as there is no related probable or estimable contingent liability.

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INFORMATION RELATING TO THE CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

6 Months Ended

Mar. 31, 2023

Supplemental Cash Flow Elements [Abstract]

INFORMATION RELATING TO THE CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

INFORMATION RELATING TO THE CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

	Six months ended March 31,
	2023		2022
Supplemental disclosure of cash flow information:
Cash paid during the year for:
Income taxes paid, net	$	100,000	$	302,000

Capital expenditure accruals related to oil and natural gas exploration and development decreased $105,000 during the six months ended March 31, 2023 and increased $443,000 during the six months ended March 31, 2022. Additionally, capital expenditure accruals related to oil and natural gas asset retirement obligations increased $220,000 and $2,341,000 during the six months ended March 31, 2023 and 2022, respectively.

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RELATED PARTY TRANSACTIONS

6 Months Ended

Mar. 31, 2023

Related Party Transactions [Abstract]

RELATED PARTY TRANSACTIONS

RELATED PARTY TRANSACTIONS

Kaupulehu Developments is entitled to receive payments from the sales of lots and/or residential units by KD I and KD II. KD I and KD II are part of the Kukio Resort Land Development Partnerships in which Barnwell holds indirect 19.6% and 10.8% non-controlling ownership interests, respectively, accounted for under the equity method of investment. The percentage of sales payments are part of transactions which took place in 2004 and 2006 where Kaupulehu Developments sold its leasehold interests in Increment I and Increment II to KD I's and KD II's predecessors in interest, respectively, which was prior to Barnwell’s affiliation with KD I and KD II which commenced on November 27, 2013, the acquisition date of our ownership interest in the Kukio Resort Land Development Partnerships. Changes to the arrangement above, effective March 7, 2019, are discussed in Note 3.

During the six months ended March 31, 2023, Barnwell received $265,000 in percentage of sales payments from KD 1 from the sale of one single-family lot within Increment I. During the six months ended March 31, 2022, Barnwell received $1,295,000 in percentage of sales payments from KD 1 from the sale of six single-family lots within Increment I.

Mr. Colin R. O'Farrell, formerly a member of the Board of Directors of the Company from July 7, 2021 to March 7, 2022, is the sole member of Four Pines Operating LLC which owns a 25% interest in Gros Ventre. In February 2021, Gros Ventre and BOK, a wholly-owned subsidiary of Barnwell, entered into the Teton Operating Agreement of Teton Barnwell, an entity formed for the purpose of directly investing in oil and natural gas exploration and development in Oklahoma. Under the terms of the Teton Operating Agreement, Gros Ventre makes no capital contributions and receives 2% of the profits of Teton Barnwell. Additionally, as the manager of Teton Barnwell, Gros Venture is paid an annual asset management fee equal to 1% of the cumulative capital contributions made to Teton Barnwell as compensation for its management services. Furthermore, as discussed above, Mr. O'Farrell controls Four Pines, which, as of March 31, 2023, was paid $255,000 in broker fees in connection with the oil and natural gas investment discussed in Note 6.

Cooperation and Support Agreement

In January 2023, the Company entered into a cooperation and support agreement (the “Cooperation Agreement”) with Alexander C. Kinzler, the Company’s CEO and President in his capacity as a stockholder, MRMP-Managers LLC, the Ned L. Sherwood Revocable Trust, NLS Advisory Group, Inc. and Ned L. Sherwood (collectively, the “MRMP Stockholders”), with respect to a potential proxy contest pertaining to the election of directors to our Board of Directors (the “Board”). The Cooperation Agreement extended for two years the standstill terms of the previous agreement entered into with the MRMP Stockholders in 2021, which ended the potential of a proxy contest at the 2023 annual meeting of stockholders (the “2023 Annual Meeting”), which was held on April 17, 2023.

Pursuant to the terms of the Cooperation Agreement, among other things, the Company agreed to promptly appoint Joshua S. Horowitz and Laurance Narbut, effective February 9, 2023, to serve on the Board. In addition, the Company agreed to nominate a five-person board comprised of Mr. Kinzler, Kenneth Grossman, Douglas Woodrum, and Messrs. Horowitz and Narbut as candidates for election to the Board at the 2023 Annual Meeting and the 2024 annual meeting of stockholders (the “2024 Annual Meeting”) and Mr. Kinzler and the MRMP Stockholders agreed to vote their respective shares of common stock of the Company in favor of the election of the Company’s slate at the 2023 Annual Meeting and the 2024 Annual Meeting. Additionally, pursuant to the terms of the Cooperation Agreement, the Company terminated the previously adopted Tax Benefits Preservation Plan, although the MRMP Stockholders have agreed to limit their beneficial and economic ownership of the Company to 28% of the outstanding common stock of the Company for the next 12 months and 30% for the subsequent 12-month period. In exchange for this arrangement, the Company agreed to reimburse the MRMP Stockholders and Mr. Kinzler for their reasonable, documented out-of-pocket fees and expenses (including legal expenses) in connection with the negotiation and execution of the Cooperation Agreement and the transactions contemplated hereby and the proposed nomination of directors at the 2023 Annual Meeting. In the three and six months ended March 31, 2023, $202,000 and $149,000 in expenses were recorded for reimbursements to MRMP Stockholders and Mr. Kinzler, respectively, under the Cooperation Agreement.

In May 2023, the Company’s Board of Directors approved and ratified the payment of one-time special director fees to directors Messrs. Grossman and Woodrum for their services on behalf of the Company and the Board pertaining to the negotiations of the Cooperation Agreement and the settlement of the potential proxy contest. Mr. Grossman received a one-time special director fee of $100,000 to be paid by a cash payment of $40,000 and a stock grant of 22,728 shares of Barnwell common stock (valued at $60,000 using the closing price of Barnwell's common stock on May 11, 2023, the date of grant). Mr. Woodrum received a one-time special director fee of $50,000 to be paid by a cash payment of $20,000 and a stock grant of 11,363 shares of Barnwell common stock (valued at $30,000 using the closing price of Barnwell's common stock on May 11, 2023, the date of grant). Accordingly, these special one-time director fees of $150,000 were accrued by the Company as of March 31, 2023 and the amount is recorded in “Accounts payable” on the accompanying Condensed Consolidated Balance Sheet.

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SUBSEQUENT EVENTS	6 Months Ended
	Mar. 31, 2023
Subsequent Events [Abstract]
SUBSEQUENT EVENTS	SUBSEQUENT EVENTSIn May 2023, the Company's Board of Directors declared a cash dividend of $0.015 per share payable on June 12, 2023 to stockholders of record on May 25, 2023.

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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)

6 Months Ended

Mar. 31, 2023

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Principles of Consolidation

Principles of Consolidation

The condensed consolidated financial statements include the accounts of Barnwell Industries, Inc. and all majority-owned subsidiaries (collectively referred to herein as “Barnwell,” “we,” “our,” “us,” or the “Company”), including a 77.6%-owned land investment general partnership (Kaupulehu Developments), a 75%-owned land investment partnership (KD Kona 2013 LLLP), and a variable interest entity (Teton Barnwell Fund I, LLC) for which the Company is deemed to be the primary beneficiary. All significant intercompany accounts and transactions have been eliminated.

    Undivided interests in oil and natural gas exploration and production joint ventures are consolidated on a proportionate basis. Barnwell’s investments in both unconsolidated entities in which a significant, but less than controlling, interest is held and in variable interest entities in which the Company is not deemed to be the primary beneficiary are accounted for by the equity method.

Unless otherwise indicated, all references to “dollars” in this Form 10-Q are to U.S. dollars.

Unaudited Interim Financial Information

Unaudited Interim Financial Information

The accompanying unaudited condensed consolidated financial statements and notes have been prepared by Barnwell in accordance with the rules and regulations of the United States (“U.S.”) Securities and Exchange Commission. Accordingly, certain information and footnote disclosures normally included in the annual financial statements prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) have been condensed or omitted pursuant to those rules and regulations, although the Company believes that the disclosures made are adequate to make the information not misleading. These condensed consolidated financial statements and notes should be read in conjunction with the consolidated financial statements and notes thereto included in Barnwell’s September 30, 2022 Annual Report on Form 10-K, as amended by our Form 10-K/A Amendment No. 1 (our “2022 Annual Report”). The Condensed Consolidated Balance Sheet as of September 30, 2022 has been derived from audited consolidated financial statements.

In the opinion of management, all adjustments (which include only normal recurring adjustments, with the exception of an out-of-period adjustment for the six months ended March 31, 2023 as described below) necessary to present fairly the financial position at March 31, 2023, results of operations, comprehensive (loss) income, and equity for the three and six months ended March 31, 2023 and 2022, and cash flows for the six months ended March 31, 2023 and 2022, have been made. The results of operations for the period ended March 31, 2023 are not necessarily indicative of the operating results for the full year.

Out-of-Period Adjustment

Out-of-Period Adjustment

During the three months ended December 31, 2022, errors were identified related to estimates of accrued oil and natural gas sales and accrued professional fees for the year ended September 30, 2022.

Accordingly, the Company recorded out-of-period adjustments in the three months ended December 31, 2022 for the rollover effect of those differences which were immaterial to the results of that quarter. For the six months ended March 31, 2023, the rollover effect of those out-of-period adjustments both decreased oil and natural gas revenues and increased general and administrative expenses by a total of $147,000, which accordingly increased our net loss before income taxes and net loss for the six months ended March 31, 2023 by the same amount. The net earnings per basic and diluted share attributable to Barnwell stockholders would have been $0.02 lower for the year ended September 30, 2022 and the net loss per basic and diluted share attributable to Barnwell stockholders would have been $0.01 lower for the six months ended March 31, 2023 had the amounts been reflected in the periods to which they relate. Based upon an evaluation of all relevant quantitative and qualitative factors, and after considering the provisions of Staff Accounting Bulletin (SAB) No. 99, “Materiality,” and SAB 108, management believes these out-of-period correcting adjustments were not material to the Company’s results for the six months ended March 31, 2023 or the Company’s trend of operating results. We evaluated the impact of these out-of-period adjustments on the results of our previously issued financial statements for the year ended September 30, 2022 and first quarter ended December 31, 2022 and concluded that the impact was not material as well.

Use of Estimates in the Preparation of Condensed Consolidated Financial Statements

Use of Estimates in the Preparation of Condensed Consolidated Financial Statements

The preparation of the condensed consolidated financial statements in conformity with U.S. GAAP requires management of Barnwell to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses and the disclosure of contingent assets and liabilities. Actual results could differ significantly from those estimates. Significant assumptions are required in the valuation of deferred tax assets, asset retirement obligations, share-based payment arrangements, obligations for retirement plans, contract drilling estimated costs to complete, proved oil and natural gas reserves, and the carrying value of other assets, and such assumptions may impact the amount at which such items are recorded.

Advances To Operators For Capital Expenditures

Advances to Operators for Capital Expenditures

The Company participates in the drilling of crude oil and natural gas wells with other working interest partners. Due to the capital-intensive nature of crude oil and natural gas drilling activities, the working interest partner responsible for conducting the drilling operations may request advance payments from other working interest partners for their share of the costs. The Company expects such advances to be applied by working interest partners against joint interest billings for its share of drilling operations within 90 days from when the advance is paid.

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(LOSS) EARNINGS PER COMMON SHARE (Tables)

6 Months Ended

Mar. 31, 2023

Earnings Per Share [Abstract]

Reconciliations between net earnings (loss) attributable to the entity's stockholders and common shares outstanding of the basic and diluted net earnings (loss) per share computations

Reconciliations between net (loss) earnings attributable to Barnwell stockholders and common shares outstanding of the basic and diluted net (loss) earnings per share computations are detailed in the following tables:

	Three months ended March 31, 2023
	Net Loss (Numerator)		Shares (Denominator)	Per-Share Amount
Basic net loss per share	$	(1,237,000)	9,956,687	$	(0.12)
Effect of dilutive securities -
common stock options	—		—
Diluted net loss per share	$	(1,237,000)	9,956,687	$	(0.12)

	Six months ended March 31, 2023
	Net Loss (Numerator)		Shares (Denominator)	Per-Share Amount
Basic net loss per share	$	(148,000)	9,956,687	$	(0.01)
Effect of dilutive securities -
common stock options	—		—
Diluted net loss per share	$	(148,000)	9,956,687	$	(0.01)

	Three months ended March 31, 2022
	Net Earnings (Numerator)		Shares (Denominator)	Per-Share Amount
Basic net earnings per share	$	2,052,000	9,570,989	$	0.21
Effect of dilutive securities -
common stock options	—		—
Diluted net earnings per share	$	2,052,000	9,570,989	$	0.21

	Six months ended March 31, 2022
	Net Earnings (Numerator)		Shares (Denominator)	Per-Share Amount
Basic net earnings per share	$	3,125,000	9,507,955	$	0.33
Effect of dilutive securities -
common stock options	—		—
Diluted net earnings per share	$	3,125,000	9,507,955	$	0.33

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INVESTMENTS (Tables)

6 Months Ended

Mar. 31, 2023

Investments, All Other Investments [Abstract]

Summarized financial information for the land development partnerships

Summarized financial information for the Kukio Resort Land Development Partnerships is as follows:

	Three months ended March 31,
	2023		2022
Revenue	$	1,284,000	$	9,665,000
Gross profit	$	738,000	$	6,433,000
Net (loss) earnings	$	(82,000)	$	5,673,000

	Six months ended March 31,
	2023		2022
Revenue	$	4,996,000	$	18,918,000
Gross profit	$	3,160,000	$	13,147,000
Net earnings	$	1,225,000	$	11,636,000

Summary of increment I and increment II percentage of sales payment revenues received

The following table summarizes the Increment I revenues from KD I and the amount of fees directly related to such revenues:

	Three months ended March 31,				Six months ended March 31,
	2023		2022		2023		2022
Sale of interest in leasehold land:
Revenues - sale of interest in leasehold land	$	—	$	695,000	$	265,000	$	1,295,000
Fees - included in general and administrative expenses	—		(85,000)		(32,000)		(158,000)
Sale of interest in leasehold land, net of fees paid	$	—	$	610,000	$	233,000	$	1,137,000

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CONSOLIDATED VARIABLE INTEREST ENTITY (Tables)

6 Months Ended

Mar. 31, 2023

Variable Interest Entity, Primary Beneficiary, Does Not Hold Majority Voting Interest, Disclosures [Abstract]

Schedule of assets and liabilities of variable interest entity

The following table summarizes the carrying value of the assets and liabilities of Teton Barnwell that are consolidated by the Company. Intercompany balances are eliminated in consolidation and thus, are not reflected in the table below.

	March 31, 2023		September 30, 2022
ASSETS
Cash and cash equivalents	$	15,000	$	623,000
Accounts and other receivables	298,000		606,000
Oil and natural gas properties, full cost method of accounting:
Proved properties, net	587,000		655,000
Total assets	$	900,000	$	1,884,000
LIABILITIES
Accounts payable	$	5,000	$	15,000
Accrued operating and other expenses	15,000		26,000
Total liabilities	$	20,000	$	41,000

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RETIREMENT PLANS (Tables)

6 Months Ended

Mar. 31, 2023

Retirement Benefits [Abstract]

Schedule of components of net periodic benefit cost (income)

The following tables detail the components of net periodic benefit (income) cost for Barnwell’s retirement plans:

	Pension Plan				SERP
	Three months ended March 31,
	2023		2022		2023		2022
Interest cost	$	101,000	$	72,000	$	22,000	$	15,000
Expected return on plan assets	(166,000)		(155,000)		—		—
Amortization of net actuarial gain	—		—		(20,000)		—
Net periodic benefit (income) cost	$	(65,000)	$	(83,000)	$	2,000	$	15,000

	Pension Plan				SERP
	Six months ended March 31,
	2023		2022		2023		2022
Interest cost	$	203,000	$	145,000	$	44,000	$	30,000
Expected return on plan assets	(333,000)		(311,000)		—		—
Amortization of net actuarial gain	—		—		(40,000)		—
Net periodic benefit (income) cost	$	(130,000)	$	(166,000)	$	4,000	$	30,000

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INCOME TAXES (Tables)

6 Months Ended

Mar. 31, 2023

Income Tax Disclosure [Abstract]

Components of income (loss) before income taxes, after adjusting earnings for non-controlling interests

The components of (loss) earnings before income taxes, after adjusting the (loss) earnings for non-controlling interests, are as follows:

	Three months ended March 31,				Six months ended March 31,
	2023		2022		2023		2022
United States	$	(1,275,000)	$	1,016,000	$	(1,257,000)	$	1,908,000
Canada	35,000		1,174,000		1,185,000		1,467,000
	$	(1,240,000)	$	2,190,000	$	(72,000)	$	3,375,000

Schedule of components of the income tax (benefit) provision

The components of the income tax (benefit) provision are as follows:

	Three months ended March 31,				Six months ended March 31,
	2023		2022		2023		2022
Current	$	42,000	$	172,000	$	133,000	$	252,000
Deferred	(45,000)		(34,000)		(57,000)		(2,000)
	$	(3,000)	$	138,000	$	76,000	$	250,000

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REVENUE FROM CONTRACT WITH CUSTOMERS (Tables)

6 Months Ended

Mar. 31, 2023

Revenue from Contract with Customer [Abstract]

Summary of disaggregation of revenue

The following tables provide information about disaggregated revenue by revenue streams, reportable segments, geographical region, and timing of revenue recognition for the three and six months ended March 31, 2023 and 2022.

		Three months ended March 31, 2023
		Oil and natural gas		Contract drilling		Land investment		Other		Total
Revenue streams:
	Oil	$	2,789,000	$	—	$	—	$	—	$	2,789,000
	Natural gas	616,000		—		—		—		616,000
	Natural gas liquids	281,000		—		—		—		281,000
	Drilling and pump	—		1,501,000		—		—		1,501,000
	Other	—		—		—		29,000		29,000
	Total revenues before interest income	$	3,686,000	$	1,501,000	$	—	$	29,000	$	5,216,000
Geographical regions:
	United States	$	309,000	$	1,501,000	$	—	$	6,000	$	1,816,000
	Canada	3,377,000		—		—		23,000		3,400,000
	Total revenues before interest income	$	3,686,000	$	1,501,000	$	—	$	29,000	$	5,216,000
Timing of revenue recognition:
	Goods transferred at a point in time	$	3,686,000	$	—	$	—	$	29,000	$	3,715,000
	Services transferred over time	—		1,501,000		—		—		1,501,000
	Total revenues before interest income	$	3,686,000	$	1,501,000	$	—	$	29,000	$	5,216,000

		Three months ended March 31, 2022
		Oil and natural gas		Contract drilling		Land investment		Other		Total
Revenue streams:
	Oil	$	3,657,000	$	—	$	—	$	—	$	3,657,000
	Natural gas	859,000		—		—		—		859,000
	Natural gas liquids	617,000		—		—		—		617,000
	Drilling and pump	—		818,000		—		—		818,000
	Contingent residual payments	—		—		695,000		—		695,000
	Other	—		—		—		32,000		32,000
	Total revenues before interest income	$	5,133,000	$	818,000	$	695,000	$	32,000	$	6,678,000
Geographical regions:
	United States	$	992,000	$	818,000	$	695,000	$	—	$	2,505,000
	Canada	4,141,000		—		—		32,000		4,173,000
	Total revenues before interest income	$	5,133,000	$	818,000	$	695,000	$	32,000	$	6,678,000
Timing of revenue recognition:
	Goods transferred at a point in time	$	5,133,000	$	—	$	695,000	$	32,000	$	5,860,000
	Services transferred over time	—		818,000		—		—		818,000
	Total revenues before interest income	$	5,133,000	$	818,000	$	695,000	$	32,000	$	6,678,000

		Six months ended March 31, 2023
		Oil and natural gas		Contract drilling		Land investment		Other		Total
Revenue streams:
	Oil	$	6,273,000	$	—	$	—	$	—	$	6,273,000
	Natural gas	1,918,000		—		—		—		1,918,000
	Natural gas liquids	721,000		—		—		—		721,000
	Drilling and pump	—		3,449,000		—		—		3,449,000
	Contingent residual payments	—		—		265,000		—		265,000
	Other	—		—		—		72,000		72,000
	Total revenues before interest income	$	8,912,000	$	3,449,000	$	265,000	$	72,000	$	12,698,000
Geographical regions:
	United States	$	826,000	$	3,449,000	$	265,000	$	8,000	$	4,548,000
	Canada	8,086,000		—		—		64,000		8,150,000
	Total revenues before interest income	$	8,912,000	$	3,449,000	$	265,000	$	72,000	$	12,698,000
Timing of revenue recognition:
	Goods transferred at a point in time	$	8,912,000	$	—	$	265,000	$	72,000	$	9,249,000
	Services transferred over time	—		3,449,000		—		—		3,449,000
	Total revenues before interest income	$	8,912,000	$	3,449,000	$	265,000	$	72,000	$	12,698,000

		Six months ended March 31, 2022
		Oil and natural gas		Contract drilling		Land investment		Other		Total
Revenue streams:
	Oil	$	6,325,000	$	—	$	—	$	—	$	6,325,000
	Natural gas	1,708,000		—		—		—		1,708,000
	Natural gas liquids	1,020,000		—		—		—		1,020,000
	Drilling and pump	—		1,694,000		—		—		1,694,000
	Contingent residual payments	—		—		1,295,000		—		1,295,000
	Other	—		—		—		89,000		89,000
	Total revenues before interest income	$	9,053,000	$	1,694,000	$	1,295,000	$	89,000	$	12,131,000
Geographical regions:
	United States	$	1,956,000	$	1,694,000	$	1,295,000	$	4,000	$	4,949,000
	Canada	7,097,000		—		—		85,000		7,182,000
	Total revenues before interest income	$	9,053,000	$	1,694,000	$	1,295,000	$	89,000	$	12,131,000
Timing of revenue recognition:
	Goods transferred at a point in time	$	9,053,000	$	—	$	1,295,000	$	89,000	$	10,437,000
	Services transferred over time	—		1,694,000		—		—		1,694,000
	Total revenues before interest income	$	9,053,000	$	1,694,000	$	1,295,000	$	89,000	$	12,131,000

Summary of contract with customer, asset and liability

The following table provides information about accounts receivables, contract assets and contract liabilities from contracts with customers:

	March 31, 2023		September 30, 2022
Accounts receivables from contracts with customers	$	2,710,000	$	4,038,000
Contract assets	698,000		580,000
Contract liabilities	613,000		1,087,000

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SEGMENT INFORMATION (Tables)

6 Months Ended

Mar. 31, 2023

Segment Reporting [Abstract]

Schedule of financial information related to reporting segments

The following table presents certain financial information related to Barnwell’s reporting segments. All revenues reported are from external customers with no intersegment sales or transfers.

	Three months ended March 31,				Six months ended March 31,
	2023		2022		2023		2022
Revenues:
Oil and natural gas	$	3,686,000	$	5,133,000	$	8,912,000	$	9,053,000
Contract drilling	1,501,000		818,000		3,449,000		1,694,000
Land investment	—		695,000		265,000		1,295,000
Other	29,000		32,000		72,000		89,000
Total before interest income	5,216,000		6,678,000		12,698,000		12,131,000
Interest income	23,000		1,000		52,000		2,000
Total revenues	$	5,239,000	$	6,679,000	$	12,750,000	$	12,133,000
Depletion, depreciation, and amortization:
Oil and natural gas	$	718,000	$	577,000	$	1,514,000	$	1,013,000
Contract drilling	43,000		41,000		86,000		88,000
Other	—		—		1,000		—
Total depletion, depreciation, and amortization	$	761,000	$	618,000	$	1,601,000	$	1,101,000
Operating profit (loss) (before general and administrative expenses):
Oil and natural gas	$	701,000	$	2,430,000	$	2,687,000	$	3,998,000
Contract drilling	57,000		(141,000)		105,000		(292,000)
Land investment	—		695,000		265,000		1,295,000
Other	29,000		32,000		71,000		89,000
Gain on sale of assets	—		—		551,000		—
Total operating profit	787,000		3,016,000		3,679,000		5,090,000
Equity in income of affiliates:
Land investment	—		1,760,000		538,000		2,967,000
General and administrative expenses	(2,050,000)		(2,241,000)		(4,299,000)		(4,071,000)
Foreign currency gain	2,000		—		80,000		—
Interest income	23,000		1,000		52,000		2,000
(Loss) earnings before income taxes	$	(1,238,000)	$	2,536,000	$	50,000	$	3,988,000

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ACCUMULATED OTHER COMPREHENSIVE INCOME (Tables)

6 Months Ended

Mar. 31, 2023

Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]

Schedule of changes in each component of accumulated other comprehensive income (loss)

The changes in each component of accumulated other comprehensive income were as follows:

	Three months ended March 31,				Six months ended March 31,
	2023		2022		2023		2022
Foreign currency translation:
Beginning accumulated foreign currency translation	$	224,000	$	237,000	$	222,000	$	262,000
Change in cumulative translation adjustment before reclassifications	—		12,000		2,000		(13,000)
Income taxes	—		—		—		—
Net current period other comprehensive income (loss)	—		12,000		2,000		(13,000)
Ending accumulated foreign currency translation	224,000		249,000		224,000		249,000
Retirement plans:
Beginning accumulated retirement plans benefit income (cost)	1,052,000		(230,000)		1,072,000		(230,000)
Amortization of net actuarial gain	(20,000)		—		(40,000)		—
Income taxes	—		—		—		—
Net current period other comprehensive (loss)	(20,000)		—		(40,000)		—
Ending accumulated retirement plans benefit income (cost)	1,032,000		(230,000)		1,032,000		(230,000)
Accumulated other comprehensive income, net of taxes	$	1,256,000	$	19,000	$	1,256,000	$	19,000

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INFORMATION RELATING TO THE CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Tables)

6 Months Ended

Mar. 31, 2023

Supplemental Cash Flow Elements [Abstract]

Schedule of supplemental cash flow information

	Six months ended March 31,
	2023		2022
Supplemental disclosure of cash flow information:
Cash paid during the year for:
Income taxes paid, net	$	100,000	$	302,000

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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended		12 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Mar. 31, 2023	Mar. 31, 2022	Sep. 30, 2022
Principles of Consolidation
(Loss) earnings before income taxes	$ (1,238)	$ 2,536	$ 50	$ 3,988
Net (loss) earnings	$ (1,235)	$ 2,398	$ (26)	$ 3,738
Basic net earnings (loss) per share (in dollars per share)	$ (0.12)	$ 0.21	$ (0.01)	$ 0.33
Diluted net earnings (loss) per share (in dollars per share)	$ (0.12)	$ 0.21	$ (0.01)	$ 0.33
Revision of Prior Period, Error Correction, Adjustment
Principles of Consolidation
(Loss) earnings before income taxes			$ (147)
Net (loss) earnings			$ (147)
Basic net earnings (loss) per share (in dollars per share)			$ (0.01)		$ (0.02)
Diluted net earnings (loss) per share (in dollars per share)			$ (0.01)		$ (0.02)
Kaupulehu Developments
Principles of Consolidation
Ownership interest in subsidiaries (as a percent)			77.60%
KD Kona 2013 LLLP
Principles of Consolidation
Ownership interest in subsidiaries (as a percent)			75.00%

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(LOSS) EARNINGS PER COMMON SHARE (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Mar. 31, 2023	Mar. 31, 2022
Net Earnings (Loss) (Numerator)
Basic	$ (1,237)	$ 2,052	$ (148)	$ 3,125
Effect of dilutive securities - common stock options	0	0	0	0
Diluted	$ (1,237)	$ 2,052	$ (148)	$ 3,125
Shares (Denominator)
Basic (in shares)	9,956,687	9,570,989	9,956,687	9,507,955
Effect of dilutive securities - common stock options (in shares)	0	0	0	0
Diluted (in shares)	9,956,687	9,570,989	9,956,687	9,507,955
Per-Share Amount
Basic net earnings (loss) per share (in dollars per share)	$ (0.12)	$ 0.21	$ (0.01)	$ 0.33
Diluted net earnings (loss) per share (in dollars per share)	$ (0.12)	$ 0.21	$ (0.01)	$ 0.33
Options
Antidilutive shares of common stock excluded from the computation of diluted shares
Antidilutive shares excluded from computation of earnings (loss) per share (in shares)	615,000	615,000	615,000	615,000

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INVESTMENTS - INVESTMENT IN KUKIO RESORT LAND DEVELOPMENT PARTNERSHIP (Details) $ in Thousands		3 Months Ended		6 Months Ended		12 Months Ended
	Nov. 27, 2013 USD ($) partnership	Mar. 31, 2023 USD ($) lot	Mar. 31, 2022 USD ($)	Mar. 31, 2023 USD ($) lot	Mar. 31, 2022 USD ($)	Sep. 30, 2022 USD ($)	Jun. 30, 2021 USD ($)	Mar. 07, 2019
Investment Holdings [Line Items]
Equity in income of affiliates		$ 0	$ 1,760	$ 538	$ 2,967
Investment in land development partnerships
Investment Holdings [Line Items]
Number of limited liability limited partnerships formed | partnership	2
Cash distribution from equity method investment, gross		0	1,760	538	2,967
Cash distribution from equity method investment, net			1,568	478	2,643
Equity in income of affiliates		$ 0	1,760	538	2,967
Investment in Kukio Resort Land Development Partnerships							$ 0
Cumulative cash distributions from Kukio Resort Land Development Partnerships in excess of our investment balance				$ 1,211		$ 958
K D Kukio Resorts LLLP | Investment in land development partnerships
Investment Holdings [Line Items]
Ownership interest acquired	19.60%
KD Kaupulehu, LLLP | Investment in land development partnerships
Investment Holdings [Line Items]
Ownership interest acquired	19.60%
KD Maniniowali L L L P | Investment in land development partnerships
Investment Holdings [Line Items]
Ownership interest acquired	19.60%
Indirectly Acquired Interest | Investment in land development partnerships
Investment Holdings [Line Items]
Aggregate cost	$ 5,140
KD Acquisition, LLLP | Investment in land development partnerships
Investment Holdings [Line Items]
Ownership interest acquired		19.60%		19.60%
KD Kona 2013 LLLP | Investment in land development partnerships
Investment Holdings [Line Items]
Ownership interest acquired	75.00%
KKM Makai LLLP | Investment in land development partnerships
Investment Holdings [Line Items]
Ownership interest acquired	34.45%
KD Kaupulehu LLLP Increment I | Investment in land development partnerships
Investment Holdings [Line Items]
Number of residential lots remaining to be sold | lot		1		1
KD Kaupulehu, LLLP | KD Acquisition II, LP | Investment in land development partnerships
Investment Holdings [Line Items]
Ownership interest acquired								55.00%
Replay | KD Acquisition II, LP | Investment in land development partnerships
Investment Holdings [Line Items]
Ownership interest acquired								45.00%
Barnwell Industries Inc | KD Acquisition II, LP | Investment in land development partnerships
Investment Holdings [Line Items]
Ownership interest acquired		10.80%		10.80%
Non-controlling Interests | Investment in land development partnerships
Investment Holdings [Line Items]
Cash distribution from equity method investment, net			$ 192	$ 60	$ 324

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INVESTMENTS - SUMMARIZED FINANCIAL INFORMATION (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Mar. 31, 2023	Mar. 31, 2022
Investment Holdings [Line Items]
Revenues	$ 5,239	$ 6,679	$ 12,750	$ 12,133
Net (loss) earnings	(1,235)	2,398	(26)	3,738
Investment in land development partnerships
Investment Holdings [Line Items]
Revenues	1,284	9,665	4,996	18,918
Gross Profit	738	6,433	3,160	13,147
Net (loss) earnings	$ (82)	$ 5,673	$ 1,225	$ 11,636

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INVESTMENTS - SALE OF INTEREST IN LEASEHOLD LAND (Details) - KD Kaupulehu LLLP Increment I - Kaupulehu Developments	6 Months Ended
	Mar. 31, 2023 lot
Investment Holdings [Line Items]
Payments entitled to be received as percentage of gross proceeds from sale of single family lots	10.00%
Number of single family lots sold	1
Number of lots remaining to be sold	1
Number of lots developed	79

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INVESTMENTS - SUMMARY OF REVENUES (Details) - Kaupulehu Developments - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Mar. 31, 2023	Mar. 31, 2022
Investment Holdings [Line Items]
Revenues - sale of interest in leasehold land	$ 0	$ 695	$ 265	$ 1,295
Fees - included in general and administrative expenses	0	(85)	(32)	(158)
Sale of interest in leasehold land, net of fees paid	$ 0	$ 610	$ 233	$ 1,137

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INVESTMENTS - INVESTMENT IN LEASEHOLD LAND INTEREST - LOT 4C (Details) a in Thousands	Mar. 31, 2023 a
Investment in leasehold land interest – Lot 4C
Investment Holdings [Line Items]
Area of land (in acres)	1

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CONSOLIDATED VARIABLE INTEREST ENTITY - NARRATIVE (Details)	Mar. 31, 2023
Variable Interest Entity [Line Items]
Percentage of capital contributions to variable interest entity	100.00%
Gros Ventre Partners, LLC
Variable Interest Entity [Line Items]
Profit sharing ratio of variable interest entity	2.00%
Asset management fee, percent fee of cumulative capital contributions	1.00%
BOK Drilling, LLC
Variable Interest Entity [Line Items]
Profit sharing ratio of variable interest entity	98.00%

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CONSOLIDATED VARIABLE INTEREST ENTITY - CARRYING VALUE OF ASSETS AND LIABILITIES (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Sep. 30, 2022
ASSETS
Cash and cash equivalents	$ 5,779	$ 12,804
Accounts and other receivables	2,965	4,361
Total assets	35,499	37,215
LIABILITIES
Accounts payable	1,808	1,462
Accrued operating and other expenses	1,294	1,576
Total liabilities	16,635	18,054
Variable Interest Entity, Primary Beneficiary
ASSETS
Cash and cash equivalents	15	623
Accounts and other receivables	298	606
Proved properties, net	587	655
Total assets	900	1,884
LIABILITIES
Accounts payable	5	15
Accrued operating and other expenses	15	26
Total liabilities	$ 20	$ 41

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ASSET HELD FOR SALE (Details) - Drilling Rigs And Equipment - USD ($) $ in Thousands	1 Months Ended	6 Months Ended
	Sep. 30, 2022	Mar. 31, 2023
Long Lived Assets Held-for-sale [Line Items]
Proceeds recorded as other current liabilities	$ 551
Gain on sale of drilling rig		$ 551

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OIL AND NATURAL GAS PROPERTIES (Details) - USD ($) $ in Thousands	1 Months Ended		3 Months Ended	6 Months Ended
	Dec. 31, 2022	Jan. 31, 2022	Dec. 31, 2021	Mar. 31, 2023	Mar. 31, 2022	Dec. 01, 2022	Sep. 30, 2022
Oil and Natural Gas Properties [Line Items]
Advances to operators for capital expenditures				$ 481			$ 0
Broker's fee paid				7,306	$ 5,223
Payments to acquire oil and natural gas properties				0	$ 1,563
Barnwell Industries Inc | Twining, Alberta, Canada
Oil and Natural Gas Properties [Line Items]
Payments to acquire oil and natural gas properties		$ 1,246	$ 317
Asset retirement obligation assumed		$ 1,500
Barnwell Texas, LLC
Oil and Natural Gas Properties [Line Items]
Working interest in oil and gas leasehold acreage						22.30%
Cash paid to acquire working interest in oil and gas leasehold acreage	$ 806
Working interest in oil wells						15.40%
Prepayments to drill oil wells	$ 4,293
Costs incurred				3,812
Advances to operators for capital expenditures				$ 481
Broker's fee percent				5.00%
Barnwell Texas, LLC | Four Pines Exploration LLC - Exploration - Series 1
Oil and Natural Gas Properties [Line Items]
Broker's fee paid				$ 255

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RETIREMENT PLANS (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Mar. 31, 2023	Mar. 31, 2022
Pension Plan
Net periodic benefit cost:
Interest cost	$ 101	$ 72	$ 203	$ 145
Expected return on plan assets	(166)	(155)	(333)	(311)
Amortization of net actuarial gain	0	0	0	0
Net periodic benefit (income) cost	(65)	(83)	(130)	(166)
Other disclosures
Estimated future Pension Plan contributions	0		0
SERP
Net periodic benefit cost:
Interest cost	22	15	44	30
Expected return on plan assets	0	0	0	0
Amortization of net actuarial gain	(20)	0	(40)	0
Net periodic benefit (income) cost	$ 2	$ 15	$ 4	$ 30

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INCOME TAXES (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Mar. 31, 2023	Mar. 31, 2022
Components of earnings (loss) before income taxes, after adjusting the earnings (loss) for non-controlling interests
United States	$ (1,275)	$ 1,016	$ (1,257)	$ 1,908
Canada	35	1,174	1,185	1,467
Total	(1,240)	2,190	(72)	3,375
Components of the income tax provision (benefit)
Current	42	172	133	252
Deferred	(45)	(34)	(57)	(2)
Total	$ (3)	$ 138	$ 76	$ 250

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REVENUE FROM CONTRACTS WITH CUSTOMERS - DISAGGREGATION OF REVENUE (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Mar. 31, 2023	Mar. 31, 2022
Disaggregation of Revenue [Line Items]
Revenue before interest income	$ 5,216	$ 6,678	$ 12,698	$ 12,131
Oil
Disaggregation of Revenue [Line Items]
Revenue before interest income	2,789	3,657	6,273	6,325
Natural gas
Disaggregation of Revenue [Line Items]
Revenue before interest income	616	859	1,918	1,708
Natural gas liquids
Disaggregation of Revenue [Line Items]
Revenue before interest income	281	617	721	1,020
Drilling and pump
Disaggregation of Revenue [Line Items]
Revenue before interest income	1,501	818	3,449	1,694
Contingent residual payments
Disaggregation of Revenue [Line Items]
Revenue before interest income		695	265	1,295
Other
Disaggregation of Revenue [Line Items]
Revenue before interest income	29	32	72	89
United states
Disaggregation of Revenue [Line Items]
Revenue before interest income	1,816	2,505	4,548	4,949
Canada
Disaggregation of Revenue [Line Items]
Revenue before interest income	3,400	4,173	8,150	7,182
Goods transferred at a point in time
Disaggregation of Revenue [Line Items]
Revenue before interest income	3,715	5,860	9,249	10,437
Services transferred over time
Disaggregation of Revenue [Line Items]
Revenue before interest income	1,501	818	3,449	1,694
Oil and natural gas
Disaggregation of Revenue [Line Items]
Revenue before interest income	3,686	5,133	8,912	9,053
Oil and natural gas | Oil
Disaggregation of Revenue [Line Items]
Revenue before interest income	2,789	3,657	6,273	6,325
Oil and natural gas | Natural gas
Disaggregation of Revenue [Line Items]
Revenue before interest income	616	859	1,918	1,708
Oil and natural gas | Natural gas liquids
Disaggregation of Revenue [Line Items]
Revenue before interest income	281	617	721	1,020
Oil and natural gas | Drilling and pump
Disaggregation of Revenue [Line Items]
Revenue before interest income	0	0	0	0
Oil and natural gas | Contingent residual payments
Disaggregation of Revenue [Line Items]
Revenue before interest income		0	0	0
Oil and natural gas | Other
Disaggregation of Revenue [Line Items]
Revenue before interest income	0	0	0	0
Oil and natural gas | United states
Disaggregation of Revenue [Line Items]
Revenue before interest income	309	992	826	1,956
Oil and natural gas | Canada
Disaggregation of Revenue [Line Items]
Revenue before interest income	3,377	4,141	8,086	7,097
Oil and natural gas | Goods transferred at a point in time
Disaggregation of Revenue [Line Items]
Revenue before interest income	3,686	5,133	8,912	9,053
Oil and natural gas | Services transferred over time
Disaggregation of Revenue [Line Items]
Revenue before interest income	0	0	0	0
Contract drilling
Disaggregation of Revenue [Line Items]
Revenue before interest income	1,501	818	3,449	1,694
Contract drilling | Oil
Disaggregation of Revenue [Line Items]
Revenue before interest income	0	0	0	0
Contract drilling | Natural gas
Disaggregation of Revenue [Line Items]
Revenue before interest income	0	0	0	0
Contract drilling | Natural gas liquids
Disaggregation of Revenue [Line Items]
Revenue before interest income	0	0	0	0
Contract drilling | Drilling and pump
Disaggregation of Revenue [Line Items]
Revenue before interest income	1,501	818	3,449	1,694
Contract drilling | Contingent residual payments
Disaggregation of Revenue [Line Items]
Revenue before interest income		0	0	0
Contract drilling | Other
Disaggregation of Revenue [Line Items]
Revenue before interest income	0	0	0	0
Contract drilling | United states
Disaggregation of Revenue [Line Items]
Revenue before interest income	1,501	818	3,449	1,694
Contract drilling | Canada
Disaggregation of Revenue [Line Items]
Revenue before interest income	0	0	0	0
Contract drilling | Goods transferred at a point in time
Disaggregation of Revenue [Line Items]
Revenue before interest income	0	0	0	0
Contract drilling | Services transferred over time
Disaggregation of Revenue [Line Items]
Revenue before interest income	1,501	818	3,449	1,694
Land investment
Disaggregation of Revenue [Line Items]
Revenue before interest income	0	695	265	1,295
Land investment | Oil
Disaggregation of Revenue [Line Items]
Revenue before interest income	0	0	0	0
Land investment | Natural gas
Disaggregation of Revenue [Line Items]
Revenue before interest income	0	0	0	0
Land investment | Natural gas liquids
Disaggregation of Revenue [Line Items]
Revenue before interest income	0	0	0	0
Land investment | Drilling and pump
Disaggregation of Revenue [Line Items]
Revenue before interest income	0	0	0	0
Land investment | Contingent residual payments
Disaggregation of Revenue [Line Items]
Revenue before interest income		695	265	1,295
Land investment | Other
Disaggregation of Revenue [Line Items]
Revenue before interest income	0	0	0	0
Land investment | United states
Disaggregation of Revenue [Line Items]
Revenue before interest income	0	695	265	1,295
Land investment | Canada
Disaggregation of Revenue [Line Items]
Revenue before interest income	0	0	0	0
Land investment | Goods transferred at a point in time
Disaggregation of Revenue [Line Items]
Revenue before interest income	0	695	265	1,295
Land investment | Services transferred over time
Disaggregation of Revenue [Line Items]
Revenue before interest income	0	0	0	0
Other
Disaggregation of Revenue [Line Items]
Revenue before interest income	29	32	72	89
Other | Oil
Disaggregation of Revenue [Line Items]
Revenue before interest income	0	0	0	0
Other | Natural gas
Disaggregation of Revenue [Line Items]
Revenue before interest income	0	0	0	0
Other | Natural gas liquids
Disaggregation of Revenue [Line Items]
Revenue before interest income	0	0	0	0
Other | Drilling and pump
Disaggregation of Revenue [Line Items]
Revenue before interest income	0	0	0	0
Other | Contingent residual payments
Disaggregation of Revenue [Line Items]
Revenue before interest income			0	0
Other | Other
Disaggregation of Revenue [Line Items]
Revenue before interest income	29	32	72	89
Other | United states
Disaggregation of Revenue [Line Items]
Revenue before interest income	6	0	8	4
Other | Canada
Disaggregation of Revenue [Line Items]
Revenue before interest income	23	32	64	85
Other | Goods transferred at a point in time
Disaggregation of Revenue [Line Items]
Revenue before interest income	29	32	72	89
Other | Services transferred over time
Disaggregation of Revenue [Line Items]
Revenue before interest income	$ 0	$ 0	$ 0	$ 0

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REVENUE FROM CONTRACTS WITH CUSTOMERS - CONTRACT BALANCES (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Sep. 30, 2022
Revenue from Contract with Customer [Abstract]
Accounts receivables from contracts with customers	$ 2,710	$ 4,038
Contract assets	698	580
Contract liabilities	$ 613	$ 1,087

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REVENUE FROM CONTRACTS WITH CUSTOMERS - NARRATIVE (Details) - USD ($) $ in Thousands	6 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Sep. 30, 2022
Disaggregation of Revenue [Line Items]
Contract with customer, liability, current	$ 613		$ 1,087
Contract with customer, liability, revenue recognized	$ 969	$ 308
Percentage anticipated to be recognized in next 12 months	85.00%
Revenue, remaining performance obligation (backlog)	$ 4,292
Capitalized contract cost net, preconstruction	$ 619		$ 689
Minimum
Disaggregation of Revenue [Line Items]
Contract receivable retainage percentage	5.00%
Maximum
Disaggregation of Revenue [Line Items]
Contract receivable retainage percentage	10.00%

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SEGMENT INFORMATION (Details) - USD ($)	3 Months Ended		6 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Mar. 31, 2023	Mar. 31, 2022
Revenues:
Revenue before interest income	$ 5,216,000	$ 6,678,000	$ 12,698,000	$ 12,131,000
Interest income	23,000	1,000	52,000	2,000
Total revenues	5,239,000	6,679,000	12,750,000	12,133,000
Depletion, depreciation, and amortization:
Depletion, depreciation, and amortization	761,000	618,000	1,601,000	1,101,000
Operating profit (loss) (before general and administrative expenses):
Operating profit (loss) (before general and administrative expenses)	787,000	3,016,000	3,679,000	5,090,000
Equity in income of affiliates:
Equity in income of affiliates	0	1,760,000	538,000	2,967,000
General and administrative expenses	(2,050,000)	(2,241,000)	(4,299,000)	(4,071,000)
Foreign currency gain	2,000	0	80,000	0
Interest income	23,000	1,000	52,000	2,000
(Loss) earnings before income taxes	(1,238,000)	2,536,000	50,000	3,988,000
Intersegment eliminations
Revenues:
Total revenues			0
Oil and natural gas
Revenues:
Revenue before interest income	3,686,000	5,133,000	8,912,000	9,053,000
Total revenues	3,686,000	5,133,000	8,912,000	9,053,000
Depletion, depreciation, and amortization:
Depletion, depreciation, and amortization	718,000	577,000	1,514,000	1,013,000
Operating profit (loss) (before general and administrative expenses):
Operating profit (loss) (before general and administrative expenses)	701,000	2,430,000	2,687,000	3,998,000
Contract drilling
Revenues:
Revenue before interest income	1,501,000	818,000	3,449,000	1,694,000
Total revenues	1,501,000	818,000	3,449,000	1,694,000
Depletion, depreciation, and amortization:
Depletion, depreciation, and amortization	43,000	41,000	86,000	88,000
Operating profit (loss) (before general and administrative expenses):
Operating profit (loss) (before general and administrative expenses)	57,000	(141,000)	105,000	(292,000)
Land investment
Revenues:
Revenue before interest income	0	695,000	265,000	1,295,000
Total revenues	0	695,000	265,000	1,295,000
Operating profit (loss) (before general and administrative expenses):
Operating profit (loss) (before general and administrative expenses)	0	695,000	265,000	1,295,000
Other
Revenues:
Revenue before interest income	29,000	32,000	72,000	89,000
Total revenues	52,000	33,000	124,000	91,000
Depletion, depreciation, and amortization:
Depletion, depreciation, and amortization	0	0	1,000	0
Operating profit (loss) (before general and administrative expenses):
Operating profit (loss) (before general and administrative expenses)	29,000	32,000	71,000	89,000
Gain on sale of asset
Operating profit (loss) (before general and administrative expenses):
Operating profit (loss) (before general and administrative expenses)	$ 0	$ 0	$ 551,000	$ 0

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ACCUMULATED OTHER COMPREHENSIVE INCOME (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Mar. 31, 2023	Mar. 31, 2022	Sep. 30, 2022
Changes in foreign currency translation
Beginning accumulated foreign currency translation	$ 224	$ 237	$ 222	$ 262
Change in cumulative translation adjustment before reclassifications	0	12	2	(13)
Income taxes	0	0	0	0
Net current period other comprehensive income (loss)	0	12	2	(13)
Ending accumulated foreign currency translation	224	249	224	249
Changes in retirement plans
Beginning accumulated retirement plans benefit income (cost)	1,052	(230)	1,072	(230)
Amortization of net actuarial gain	(20)	0	(40)	0
Income taxes	0	0	0	0
Net current period other comprehensive (loss)	(20)	0	(40)	0
Ending accumulated retirement plans benefit income (cost)	1,032	(230)	1,032	(230)
Accumulated other comprehensive income, net of taxes	$ 1,256	$ 19	$ 1,256	$ 19	$ 1,294

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DEBT (Details) - Canada Emergency Business Account Loan $ in Thousands, $ in Thousands	3 Months Ended	6 Months Ended
	Mar. 31, 2021 CAD ($)	Mar. 31, 2023 CAD ($)	Mar. 31, 2023 USD ($)	Dec. 31, 2020 CAD ($)
Debt Instrument [Line Items]
Debt face amount		$ 60	$ 44	$ 40
Debt instrument, net increase	$ 20
Debt term		2 years
Interest rate		5.00%	5.00%
Percentage of loan to be repaid for debt forgiveness		66.70%
Percentage of debt forgiveness		33.30%
Maximum amount of loan forgiveness		$ 20
Debt, current portion			$ 44

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STOCKHOLDERS' EQUITY - AT THE MARKET OFFERING (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended
	Mar. 31, 2023	Dec. 31, 2022	Mar. 31, 2023	Mar. 31, 2022	Oct. 17, 2022	Sep. 30, 2022	Mar. 16, 2021
Sale of Stock [Line Items]
Dividends declared, cash paid per share	$ 0.015	$ 0.015	$ 0.030
Common stock, par value (in dollars per share)	$ 0.50		$ 0.50			$ 0.50
At The Market Offering
Sale of Stock [Line Items]
Common stock, par value (in dollars per share)							$ 0.50
Sale of stock, maximum aggregate sales price	$ 25,000		$ 25,000
Common shares sold (in shares)				509,467
Proceeds from sale of common stock				$ 2,356
At The Market Offering | Commissions And Fees
Sale of Stock [Line Items]
Stock issuance costs, commissions, fees, and ATM-related professional services				75
At The Market Offering | At The Market Related Professional Services
Sale of Stock [Line Items]
Stock issuance costs, commissions, fees, and ATM-related professional services				$ 22
The Tax Benefits Preservation Plan
Sale of Stock [Line Items]
Number of rights for each outstanding common stock (in shares)					1

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INFORMATION RELATING TO THE CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Details) - USD ($) $ in Thousands	6 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Supplemental disclosure of cash flow information:
Income taxes paid, net	$ 100	$ 302
Oil and natural gas
Supplemental disclosures of cash flow information:
Increase (decrease) in capital expenditure accruals related to oil and natural gas exploration and development	(105)	443
Increase (decrease) in capital expenditure accruals related to oil and natural gas asset retirement obligations	$ 220	$ 2,341

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RELATED PARTY TRANSACTIONS (Details) $ in Thousands		3 Months Ended		6 Months Ended		12 Months Ended
	May 15, 2023 USD ($) shares	Mar. 31, 2023 USD ($)	Mar. 31, 2022 USD ($)	Mar. 31, 2023 USD ($) lot	Mar. 31, 2022 USD ($) lot	Dec. 31, 2024	Dec. 31, 2023
Related party transactions
Broker's fee paid				$ 7,306	$ 5,223
Accrued fees		$ 150		$ 150
Issuance of common stock for services			$ 1		3
Forecast
Related party transactions
Percent of ownership in outstanding common stock						30.00%	28.00%
Gros Ventre Partners, LLC
Related party transactions
Profit sharing ratio of variable interest entity		2.00%		2.00%
Asset management fee, percent fee of cumulative capital contributions		1.00%		1.00%
MRMP Stockholders
Related party transactions
Reimbursements recorded as expenses		$ 202		$ 202
Mr. Alex Kinzler
Related party transactions
Reimbursements recorded as expenses		149		149
Mr. Kenneth Grossman
Related party transactions
Accrued fees		100		100
Mr. Kenneth Grossman | Subsequent Event
Related party transactions
One-time special director fee paid in cash	$ 40
Issuance of common stock for services (in shares) | shares	22,728
Issuance of common stock for services	$ 60
Mr. Douglas Woodrum
Related party transactions
Accrued fees		50		50
Mr. Douglas Woodrum | Subsequent Event
Related party transactions
One-time special director fee paid in cash	$ 20
Issuance of common stock for services (in shares) | shares	11,363
Issuance of common stock for services	$ 30
Kaupulehu Developments
Related party transactions
Revenues - sale of interest in leasehold land		$ 0	$ 695	265	1,295
Kaupulehu Developments | KD Kaupulehu, LLLP | Investment in land development partnerships | Increment I
Related party transactions
Revenues - sale of interest in leasehold land				$ 265	$ 1,295
Number of single family lots sold | lot				1	6
Four Pines Operating LLC | Gros Ventre Partners, LLC
Related party transactions
Interest owned by former member of Board of Directors		25.00%		25.00%
Barnwell Texas, LLC | Four Pines Exploration LLC - Exploration - Series 1
Related party transactions
Broker's fee paid				$ 255
KD Acquisition, LLLP | Investment in land development partnerships
Related party transactions
Ownership interest acquired		19.60%		19.60%
KD Acquisition II, LP | Barnwell Industries Inc | Investment in land development partnerships
Related party transactions
Ownership interest acquired		10.80%		10.80%

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SUBSEQUENT EVENTS (Details) - $ / shares		3 Months Ended		6 Months Ended
	May 15, 2023	Mar. 31, 2023	Dec. 31, 2022	Mar. 31, 2023
Subsequent Event [Line Items]
Dividends declared, cash paid per share		$ 0.015	$ 0.015	$ 0.030
Subsequent Event
Subsequent Event [Line Items]
Dividends declared, cash paid per share	$ 0.015