INCOME TAXES (Tables)

12 Months Ended

Sep. 30, 2024

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

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


	Year ended September 30,
	2024		2023
United States	$	(2,820,000)	$	(2,414,000)
Canada	(2,532,000)		1,400,000
	$	(5,352,000)	$	(1,014,000)

Schedule of components of the income tax provision (benefit)

The components of the income tax provision (benefit) related to the above losses are as follows:


	Year ended September 30,
	2024		2023
Current provision:




United States – State
Before operating loss carryforwards	$	23,000	$	47,000
Benefit of operating loss carryforwards	—		—
After operating loss carryforwards	23,000		47,000
Canadian
Before operating loss carryforwards	148,000		274,000
Benefit of operating loss carryforwards	—		(244,000)
After operating loss carryforwards	148,000		30,000
Total current	171,000		77,000
Deferred provision (benefit):

United States – State	42,000		(130,000)

Total deferred	42,000		(130,000)
	$	213,000	$	(53,000)

Summary of reconciliation between the reported income tax expense (benefit) and the amount computed by multiplying the earnings (loss) by the U.S. federal tax rate

A reconciliation between the reported income tax expense (benefit) and the amount computed by multiplying the loss attributable to Barnwell before income taxes by the U.S. federal tax rate of 21% is as follows:


	Year ended September 30,
	2024		2023
Tax benefit computed by applying statutory rate	$	(1,124,000)	$	(213,000)

Increase in the valuation allowance	1,383,000		182,000

Additional effect of the foreign tax provision on the total tax provision	(129,000)		(4,000)
U.S. state income tax provision (benefit), net of federal effect	70,000		(9,000)
U.S. state provision to tax return adjustments	(12,000)		(106,000)

Other	25,000		97,000
	$	213,000	$	(53,000)

Schedule of tax effects of temporary differences that give rise to significant portions of the deferred tax assets and liabilities

The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities are as follows:


	September 30,
	2024		2023
Deferred income tax assets:
Foreign tax credit carryover under U.S. tax law	$	916,000	$	928,000

U.S. federal net operating loss carryover	10,382,000		9,406,000
U.S. state unitary net operating loss carryovers	1,334,000		1,177,000
Canadian net operating loss carryovers	1,331,000		1,025,000
Tax basis of investment in land in excess of book basis under U.S. tax law	11,000		25,000

Property and equipment accumulated book depreciation and depletion in excess of tax under U.S. tax law	548,000		275,000
Asset retirement obligation accrued for books but not for tax under U.S. tax law	907,000		1,084,000
Asset retirement obligation accrued for books but not for tax under Canadian tax law	2,141,000		2,461,000
Other liabilities accrued for books but not for tax under U.S. tax law	669,000		612,000
Foreign currency loss under U.S. tax law	68,000		68,000
Foreign currency loss under Canadian tax law	79,000		81,000
Other	168,000		116,000
Total gross deferred income tax assets	18,554,000		17,258,000
Less valuation allowance	(13,896,000)		(12,439,000)
Net deferred income tax assets	4,658,000		4,819,000
Deferred income tax liabilities:
Property and equipment accumulated tax depreciation and depletion in excess of book under Canadian tax law	(117,000)		(926,000)
Book basis of investment in land development partnerships in excess of tax basis under U.S. tax law	(282,000)		(133,000)
Book basis of investment in land development partnerships in excess of tax basis under U.S. state non-unitary tax law	(86,000)		(40,000)
U.S. oil and gas property and equipment accumulated tax depreciation and depletion in excess of book under U.S. tax law	(698,000)		(906,000)
U.S. oil and gas property and equipment accumulated tax depreciation and depletion in excess of book under U.S. state tax law	(16,000)		(19,000)
U.S. tax law impact of foreign branch deferred tax asset under Canadian tax law	(2,215,000)		(1,655,000)
Asset for retirement benefits	(1,029,000)		(939,000)
Other	(315,000)		(259,000)
Total deferred income tax liabilities	(4,758,000)		(4,877,000)
Net deferred income tax liability	$	(100,000)	$	(58,000)

Reported as:
Deferred income tax assets	$	—	$	—
Deferred income tax liabilities	(100,000)		(58,000)
Net deferred income tax liability	$	(100,000)	$	(58,000)

Schedule of unrecognized tax benefits

There were no changes in unrecognized tax benefits during the years ended September 30, 2024 or 2023.


	Year ended September 30,
	2024		2023
Balance at beginning of year	$	62,000	$	62,000
Effect of tax positions taken in prior years	—		—
Accrued interest related to tax positions taken	—		—
Balance at end of year	$	62,000	$	62,000

Summary of tax years, by jurisdiction, that remain subject to examination by taxing authorities

Included below is a summary of the tax years, by jurisdiction, that remain subject to examination by taxing authorities at September 30, 2024:


Jurisdiction			Fiscal Years Open
U.S. federal			2019 – 2023
Various U.S. states			2021 – 2023
Canada federal			2017 – 2023
Various Canadian provinces			2017 – 2023