When did Barnwell Industries Inc file this 10-Q?

Barnwell Industries Inc (BRN) filed this Quarterly Report (Form 10-Q) with the SEC on May 21, 2026. The accession number assigned by EDGAR is 0001628280-26-037042.

What does a 10-Q disclose?

Form 10-Q is the SEC's quarterly report. Public companies file it after each of the first three fiscal quarters to disclose unaudited financial statements and management's discussion of operations. The fourth-quarter results are rolled into the annual 10-K instead.

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Form 10-Q is filed three times a year (after Q1, Q2, and Q3 — the fourth quarter rolls into the 10-K). 10-Qs contain unaudited interim financial statements and a shorter MD&A. They're due 40 or 45 days after quarter end depending on filer size.

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The SEC EDGAR browser lists every 10-Q Barnwell Industries Inc has filed under CIK 10048, sortable by date. Use the "View on SEC EDGAR" link in the page header, or browse directly via https://www.sec.gov/cgi-bin/browse-edgar.

Barnwell Industries Inc (BRN) 10-Q filed May 21, 2026

brn-20260331

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, 2026

☐ 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.)

24 Greenway Plaza, Suite 1800Q, Houston, Texas						77046
(Address of principal executive offices)						(Zip code)

(713) 730-7026
(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 20, 2026 there were 14,395,560 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, 2026 and September 30, 2025	3
	Condensed Consolidated Statements of Operations - three and six months ended March 31, 2026 and 2025	4
	Condensed Consolidated Statements of Comprehensive Loss - three and six months ended March 31, 2026 and 2025	5
	Condensed Consolidated Statements of Equity - three and six months ended March 31, 2026 and 2025	6
	Condensed Consolidated Statements of Cash Flows - six months ended March 31, 2026 and 2025	8
	Notes to Condensed Consolidated Financial Statements	9
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	33
I tem 3.	Quantitative and Qualitative Disclosures about Market Risk	47
I tem 4 .	C ontrols and Pro ce dures	47
P ART II.	O THER IN FORMATION:
I tem 1.	L egal Proceedings	49
I tem 1A.	R is k Factors	49
Item 2.	Un registered S ales of E quity S ecurities and U se of Proceeds	49
Item 3.	D efaults Upon Senior Se curities	49
I tem 4.	M ine Safety Disclosure	49
I tem 5.	O ther In formation	50
Item 6.	Exhibits	50
	S ignature	51
	I ndex to Exhibits	52

PART I - FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

BARNWELL INDUSTRIES, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)


	March 31, 2026		September 30, 2025
ASSETS
Current assets:
Cash and cash equivalents	$	4,016,000	$	2,886,000

Accounts and other receivables, net of allowance for credit losses of: $49,000 at March 31, 2026; $49,000 at September 30, 2025	1,811,000		1,621,000


Note receivable	150,000		300,000
Other current assets	444,000		423,000

Total current assets	6,421,000		5,230,000

Asset for retirement benefits	6,184,000		5,928,000
Investments	14,000		—
Operating lease right-of-use assets	98,000		145,000
Other non-current assets	314,000		347,000
Property and equipment:
Proved oil and natural gas properties (full cost method)	74,780,000		74,511,000


Other property and equipment	292,000		500,000
Total property and equipment	75,072,000		75,011,000
Accumulated depletion, impairment, depreciation, and amortization	(66,556,000)		(65,849,000)
Total property and equipment, net	8,516,000		9,162,000

Total assets	$	21,547,000	$	20,812,000

LIABILITIES AND EQUITY
Current liabilities:
Accounts payable	$	2,126,000	$	1,936,000
Accounts payable - related party	92,000		246,000
Accrued capital expenditures	157,000		185,000
Accrued compensation	178,000		264,000
Accrued operating and other expenses	896,000		1,022,000

Current portion of asset retirement obligation	522,000		613,000
Other current liabilities	298,000		460,000

Total current liabilities	4,269,000		4,726,000


Operating lease liabilities	67,000		93,000

Liability for retirement benefits	1,772,000		1,791,000
Asset retirement obligation	7,262,000		7,162,000
Deferred income tax liabilities	18,000		18,000
Total liabilities	13,388,000		13,790,000
Commitments and contingencies (Note 16)
Equity:
Common stock, par value $0.50 per share; authorized, 40,000,000 shares: 13,673,117 issued at March 31, 2026; 10,241,434 issued at September 30, 2025	6,837,000		5,121,000
Additional paid-in capital	10,011,000		8,039,000
(Accumulated deficit) retained earnings	(9,084,000)		(6,508,000)
Accumulated other comprehensive income, net	2,654,000		2,642,000
Treasury stock, at cost: 167,900 shares at March 31, 2026 and September 30, 2025	(2,286,000)		(2,286,000)
Total stockholders’ equity	8,132,000		7,008,000
Non-controlling interests	27,000		14,000
Total equity	8,159,000		7,022,000
Total liabilities and equity	$	21,547,000	$	20,812,000

See Notes to Condensed Consolidated Financial Statements

BARNWELL INDUSTRIES, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)


	Three months ended March 31,				Six months ended March 31,
	2026		2025		2026		2025
Revenues:
Oil and natural gas	$	2,483,000	$	3,543,000	$	5,113,000	$	7,440,000

Sale of interest in leasehold land	—		—		70,000		—
Gas processing and other	52,000		26,000		98,000		63,000
	2,535,000		3,569,000		5,281,000		7,503,000
Costs and expenses:
Oil and natural gas operating	1,843,000		1,986,000		3,914,000		4,482,000

General and administrative	1,521,000		2,162,000		3,137,000		3,325,000
Depletion, depreciation, and amortization	561,000		754,000		1,153,000		1,658,000
Impairment of assets	—		52,000		—		665,000
Foreign currency loss (gain)	58,000		(10,000)		11,000		341,000
Interest expense	—		1,000		—		1,000



	3,983,000		4,945,000		8,215,000		10,472,000
Loss from continuing operations before equity in income of affiliates and income taxes	(1,448,000)		(1,376,000)		(2,934,000)		(2,969,000)
Equity in income of affiliates	338,000		—		338,000		—
Loss from continuing operations before income taxes	(1,110,000)		(1,376,000)		(2,596,000)		(2,969,000)
Income tax (benefit) provision	6,000		162,000		(68,000)		169,000
Net loss from continuing operations	(1,116,000)		(1,538,000)		(2,528,000)		(3,138,000)
Net earnings from discontinued operations	—		331,000		—		12,000
Net loss	(1,116,000)		(1,207,000)		(2,528,000)		(3,126,000)
Less: Net earnings (loss) attributable to non-controlling interests	34,000		—		48,000		(2,000)
Net loss attributable to Barnwell Industries, Inc.	$	(1,150,000)	$	(1,207,000)	$	(2,576,000)	$	(3,124,000)
Basic and diluted loss per common share attributable to Barnwell Industries, Inc. stockholders:
Net loss from continuing operations attributable to Barnwell Industries, Inc.	$	(0.09)	$	(0.15)	$	(0.22)	$	(0.31)
Net earnings from discontinued operations	—		0.03		—		—
Net loss attributable to Barnwell Industries, Inc.	$	(0.09)	$	(0.12)	$	(0.22)	$	(0.31)
Weighted-average number of common shares outstanding:
Basic and diluted	12,672,012		10,053,534		11,875,997		10,050,319

See Notes to Condensed Consolidated Financial Statements

BARNWELL INDUSTRIES, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS

(Unaudited)


	Three months ended March 31,				Six months ended March 31,
	2026		2025		2026		2025
Net loss	$	(1,116,000)	$	(1,207,000)	$	(2,528,000)	$	(3,126,000)
Other comprehensive income (loss):
Foreign currency translation adjustments, net of taxes of $0	39,000		(3,000)		12,000		90,000





Total other comprehensive income (loss)	39,000		(3,000)		12,000		90,000
Total comprehensive loss	(1,077,000)		(1,210,000)		(2,516,000)		(3,036,000)
Less: Comprehensive (income) loss attributable to non-controlling interests	(34,000)		—		(48,000)		2,000
Comprehensive loss attributable to Barnwell Industries, Inc.	$	(1,111,000)	$	(1,210,000)	$	(2,564,000)	$	(3,034,000)

See Notes to Condensed Consolidated Financial Statements

BARNWELL INDUSTRIES, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF EQUITY

Three months ended March 31, 2026 and 2025

(Unaudited)


	Shares Outstanding	Common Stock		Additional Paid-In Capital		Retained Earnings (Accumulated Deficit)		Accumulated Other Comprehensive Income		Treasury Stock		Non-controlling Interests		Total Equity
Balance at December 31, 2024	10,053,534	$	5,111,000	$	7,746,000	$	(1,322,000)	$	2,036,000	$	(2,286,000)	$	20,000	$	11,305,000
Net loss	—	—		—		(1,207,000)		—		—		—		(1,207,000)
Foreign currency translation adjustments, net of taxes of $0	—	—		—		—		(3,000)		—		—		(3,000)


Share-based compensation	—	—		60,000		—		—		—		—		60,000
Issuance of common stock for restricted stock units vested	—	—		—		—		—		—		—		—







Balance at March 31, 2025	10,053,534	$	5,111,000	$	7,806,000	$	(2,529,000)	$	2,033,000	$	(2,286,000)	$	20,000	$	10,155,000

Balance at December 31, 2025	12,538,064	$	6,353,000	$	9,410,000	$	(7,934,000)	$	2,615,000	$	(2,286,000)	$	28,000	$	8,186,000
Net loss	—	—		—		(1,150,000)		—		—		34,000		(1,116,000)
Foreign currency translation adjustments, net of taxes of $0	—	—		—		—		39,000		—		—		39,000
Distributions to non-controlling interests	—	—		—		—		—		—		(35,000)		(35,000)
Share-based compensation	—	—		128,000		—		—		—		—		128,000

Issuance of common stock for restricted stock units vested	40,750	20,000		(20,000)		—		—		—		—		—
Issuance of common stock, net of costs	926,403	464,000		493,000		—		—		—		—		957,000




Balance at March 31, 2026	13,505,217	$	6,837,000	$	10,011,000	$	(9,084,000)	$	2,654,000	$	(2,286,000)	$	27,000	$	8,159,000

See Notes to Condensed Consolidated Financial Statements

BARNWELL INDUSTRIES, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF EQUITY

Six months ended March 31, 2026 and 2025

(Unaudited)


	Shares Outstanding	Common Stock		Additional Paid-In Capital		Retained Earnings (Accumulated Deficit)		Accumulated Other Comprehensive Income		Treasury Stock		Non-controlling Interests		Total Equity
Balance at September 30, 2024	10,028,090	$	5,098,000	$	7,690,000	$	595,000	$	1,943,000	$	(2,286,000)	$	22,000	$	13,062,000
Net (loss)	—	—		—		(3,124,000)		—		—		(2,000)		(3,126,000)
Foreign currency translation adjustments, net of taxes of $0	—	—		—		—		90,000		—		—		90,000
Distributions to non-controlling interests	—	—		—		—		—		—		—		—
Acquisition of non-controlling interest	—	—		—		—		—		—		—		—
Share-based compensation	—	—		129,000		—		—		—		—		129,000
Issuance of common stock for restricted stock units vested	25,444	13,000		(13,000)		—		—		—		—		—





Balance at March 31, 2025	10,053,534	$	5,111,000	$	7,806,000	$	(2,529,000)	$	2,033,000	$	(2,286,000)	$	20,000	$	10,155,000

Balance at September 30, 2025	10,073,534	$	5,121,000	$	8,039,000	$	(6,508,000)	$	2,642,000	$	(2,286,000)	$	14,000	$	7,022,000
Net loss	—	—		—		(2,576,000)		—		—		48,000		(2,528,000)
Foreign currency translation adjustments, net of taxes of $0	—	—		—		—		12,000		—		—		12,000
Distributions to non-controlling interests	—	—		—		—		—		—		(35,000)		(35,000)
Share-based compensation	—	—		222,000		—		—		—		—		222,000
Issuance of common stock for services	83,207	42,000		59,000		—		—		—		—		101,000
Issuance of common stock for restricted stock units vested	200,932	100,000		(100,000)		—		—		—		—		—
Issuance of common stock, net of costs	3,147,544	1,574,000		1,791,000		—		—		—		—		3,365,000




Balance at March 31, 2026	13,505,217	$	6,837,000	$	10,011,000	$	(9,084,000)	$	2,654,000	$	(2,286,000)	$	27,000	$	8,159,000

See Notes to Condensed Consolidated Financial Statements

BARNWELL INDUSTRIES, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)


	Six months ended March 31,
	2026		2025
Cash flows from operating activities of continuing operations:
Net loss	$	(2,528,000)	$	(3,126,000)
Net earnings from discontinued operations	—		12,000
Net loss from continuing operations	(2,528,000)		(3,138,000)
Adjustments to reconcile net loss from continuing operations to net cash (used in) provided by operating activities:
Depletion, depreciation, and amortization	1,153,000		1,658,000
Impairment of assets	—		665,000



Equity in income of affiliates	(338,000)		—

Retirement benefits income	(204,000)		(158,000)

Non-cash rent income	(7,000)		1,000
Accretion of asset retirement obligation	371,000		391,000
Deferred income tax (benefit) expense	—		(34,000)
Asset retirement obligation payments	(617,000)		(275,000)
Share-based compensation expense	222,000		129,000
Common stock issued for services	101,000		—
Retirement plan contributions and payments	(160,000)		(1,000)
Credit loss (reversal) expense	(4,000)		(10,000)


Foreign currency loss	11,000		341,000
(Decrease) increase from changes in current assets and liabilities	(422,000)		(423,000)
Net cash (used in) provided by operating activities from continuing operations	(2,422,000)		(854,000)
Cash flows from investing activities of continuing operations:


Distribution from equity investees in excess of earnings	323,000		—



Proceeds from the sale of oil and natural gas assets	—		282,000

Capital expenditures - oil and natural gas	(250,000)		(2,641,000)




Dividend received from discontinued operations	—		250,000
Cash divested from the sale of discontinued operations, net of proceeds	—		(163,000)
Payments received on note receivable related to the sale of discontinued operations	150,000		—
Net cash provided by (used in) investing activities from continuing operations	223,000		(2,272,000)
Cash flows from financing activities of continuing operations:

Repayments for insurance premium financing	—		(15,000)


Proceeds from issuance of stock, net of costs	3,365,000		—
Contributions from non-controlling interests	(35,000)		—

Net cash provided by financing activities from continuing operations	3,330,000		(15,000)
Cash flows from discontinued operations:
Net cash used in operating activities	—		(95,000)
Net cash provided by investing activities	—		538,000
Net cash used in financing activities	—		(250,000)
Net cash provided by discontinued operations	—		193,000
Effect of exchange rate changes on cash and cash equivalents	(1,000)		(125,000)
Net (decrease) increase in cash and cash equivalents	1,130,000		(3,073,000)
Cash and cash equivalents at beginning of period	2,886,000		4,505,000

Cash and cash equivalents of continuing operations at end of period	$	4,016,000	$	1,432,000

See Notes to Condensed Consolidated Financial Statements

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") and a 75%-owned land investment partnership (KD Kona 2013 LLLP). 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 consolidated financial statements prepared in accordance with U.S. generally accepted accounting principles (“U.S. 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, 2025 Annual Report on Form 10-K (our “2025 Annual Report”). The Condensed Consolidated Balance Sheet as of September 30, 2025 has been derived from audited consolidated financial statements.

In the opinion of management, all adjustments (which include only normal recurring adjustments) necessary to present fairly the financial position at March 31, 2026, results of operations, comprehensive loss, and equity for the three and six months ended March 31, 2026 and 2025, and cash flows for the six months ended March 31, 2026 and 2025, have been made. The results of operations for the period ended March 31, 2026 are not necessarily indicative of the operating results for the full year.

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, proved oil and natural gas reserves, and such assumptions may impact the amount at which such items are recorded.

Significant Accounting Policies

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 2025 Annual Report.

2. GOING CONCERN

The accompanying condensed consolidated financial statements have been prepared on a going concern basis, which contemplates the realization of assets and satisfaction of liabilities in the normal course of business for the twelve-month period following the date of issuance of these condensed consolidated financial statements.

3. DISCONTINUED OPERATIONS

On March 14, 2025, the Company entered into a Stock Purchase Agreement with three unrelated individuals (collectively, the “Buyer”) whereby the Buyer acquired all of the shares of capital stock of Water Resources (the “Shares”) owned by the Company (the “Purchase Agreement”). The sale and purchase of the Shares closed (the “Closing”) simultaneously with the execution and delivery of the Purchase Agreement by each of the parties thereto on March 14, 2025. The aggregate purchase price for the Shares was $1,050,000, which was paid at Closing by the Buyer as follows: an initial aggregate cash payment of $250,000 and the delivery of a non-interest bearing promissory note with a principal amount of $800,000 (the “Promissory Note”). As of March 31, 2026, the balance of the Promissory Note was $150,000 and is presented as “Note receivable” on the Condensed Consolidated Balance Sheets ($300,000 as at September 30, 2025). The final payment was extended from March 15, 2026 to June 15, 2026. The annual interest rate on the Promissory Note increased from 0% to 12% beginning August 15, 2025 and to 18% beginning December 15, 2025. Beginning March 15, 2026, outstanding interest will be treated as part of the principal, and future interest will compound annually. As of March 31, 2026, the balance of interest was $22,000, and was included in "Accounts and other receivables, net of allowance for credit losses" in the accompanying Condensed Consolidated Balance Sheets (September 30, 2025 - $5,000). $100,000 was paid on December 15, 2025 and $50,000 on February 13, 2026 as scheduled.

Water Resources drilled water wells and installed and repaired water pumping systems in Hawaii and represented our contract drilling segment. As a result of the sale, the Company has classified the related assets and liabilities and the results of its contract drilling business as discontinued operations in the condensed consolidated financial statements for all periods presented. Prior to the sale, the Company did not have any assurances that a sale of Water Resources was likely to occur. The Company recorded a loss of $193,000 on the sale of Water Resources, which was included in the results from discontinued operations for the year ended September 30, 2025. There was no impact from the sale of Water Resources on the provision for income taxes.

The following table presents the financial results from discontinued operations presented in the Condensed Consolidated Statements of Operations.


	Three months ended March 31,				Six months ended March 31,
	2026		2025		2026		2025
Revenues:
Contract drilling	$	—	$	613,000	$	—	$	1,156,000

	—		613,000		—		1,156,000
Costs and expenses:
Contract drilling operating	—		519,000		—		1,239,000
General and administrative	—		91,000		—		209,000
Depreciation and amortization	—		16,000		—		40,000
Interest expense	—		1,000		—		1,000
Gain on sale of assets (1)	—		(538,000)		—		(538,000)
	—		89,000		—		951,000
Loss from discontinued operations before income taxes	—		524,000		—		205,000
Loss on sale of discontinued operations	—		(193,000)		—		(193,000)

Net loss from discontinued operations	$	—	$	331,000	$	—	$	12,000

(1) In February 2025, the Company completed the sale of a contract drilling segment drilling rig and related ancillary equipment to an independent third party for proceeds of $538,000, net of related costs. The drilling rig and related ancillary equipment were fully depreciated and had a net book value of zero and as a result of the sale, the Company recognized a $538,000 gain during the three and six months ended March 31, 2025 which was recorded in discontinued operations.

There are no assets or liabilities of discontinued operations included in the Condensed Consolidated Balance Sheets.

4. LOSS PER COMMON SHARE

Basic loss per share is computed using the weighted-average number of common shares outstanding for the period. Diluted loss 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 and nonvested restricted stock units. Potentially dilutive shares are excluded from the computation of diluted loss per share if their effect is anti-dilutive.

Warrants to purchase 1,029,104 shares of common stock, options to purchase 505,333 shares of common stock and 470,279 restricted stock units, on a weighted average basis, were excluded from the computation of diluted shares for the three months ended March 31, 2026, as their inclusion would have been anti-dilutive. Options to purchase 465,000 shares of common stock and 258,699 restricted stock units were excluded from the computation of diluted shares for the three months ended March 31, 2025, as their inclusion would have been anti-dilutive.

Warrants to purchase 701,148 shares of common stock, options to purchase 526,758 shares of common stock and 413,314 restricted stock units, on a weighted average basis, were excluded from the computation of diluted shares for the six months ended March 31, 2026, as their inclusion would have been anti-dilutive. Options to purchase 465,000 shares of common stock and 237,475 restricted stock units

were excluded from the computation of diluted shares for the six months ended March 31, 2025, as their inclusion would have been anti-dilutive.

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


	Three months ended March 31,				Six months ended March 31,
	2026		2025		2026		2025
Numerator:
Net loss from continuing operations	$	(1,116,000)	$	(1,538,000)	$	(2,528,000)	$	(3,138,000)
Less: Net earnings (loss) attributable to non-controlling interests of continuing operations	34,000		—		48,000		(2,000)
Net loss from continuing operations attributable to Barnwell Industries, Inc.	(1,150,000)		(1,538,000)		(2,576,000)		(3,136,000)
Net loss earnings from discontinued operations	—		331,000		—		12,000
Net loss attributable to Barnwell Industries, Inc.	$	(1,150,000)	$	(1,207,000)	$	(2,576,000)	$	(3,124,000)

Denominator:
Basic weighted-average number of common shares outstanding	12,672,012		10,053,534		11,875,997		10,050,319
Effect of dilutive securities - common stock options and restricted stock units	—		—		—		—
Diluted weighted-average number of common shares outstanding	12,672,012		10,053,534		11,875,997		10,050,319

Basic and diluted loss per common share:
Net loss per common share from continuing operations attributable to Barnwell Industries, Inc. stockholders	$	(0.09)	$	(0.15)	$	(0.22)	$	(0.31)
Net loss per common share from discontinued operations	—		0.03		—		—
Net loss per common share attributable to Barnwell Industries, Inc. stockholders	$	(0.09)	$	(0.12)	$	(0.22)	$	(0.31)

5. ACCOUNTS AND OTHER RECEIVABLES AND ALLOWANCE FOR CREDIT LOSSES

Insurance Recovery Receivable

In the quarter ended June 30, 2025, the Company filed an insurance claim for $348,000 with our insurance carrier for the reimbursement of certain legal fees incurred that are covered under our directors and officers’ liability insurance policies. In November 2025, $250,000 was received, leaving a $98,000 receivable. At March 31, 2026, the Company's insurance carrier confirmed $176,000 will be received, resulting in gains of $26,000 and $78,000 recognized during the three and six months ended March 31, 2026, respectively. The insurance recovery receivable is included in "Accounts and other receivables, net of allowance for credit losses" in the accompanying Condensed Consolidated Balance Sheets and the related gain was recorded in “General and administrative” expenses in the accompanying Condensed Consolidated Statements of Operations.

Allowance for Credit Losses

The following table summarizes the activity in the balance of allowance for credit losses related to accounts and other receivables:


	Six months ended March 31,
	2026		2025
Allowance for credit losses at beginning of period	$	49,000	$	141,000
(Reversal of) provision for expected credit losses	—		(10,000)
Write-offs charged against the allowance	—		(75,000)

Foreign currency translation adjustment	—		(8,000)
Allowance for credit losses at end of period	$	49,000	$	48,000

6. 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 Kukio Resort Land Development Partnerships derive income from the sale of residential parcels in Increment I, which is now completely sold, 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. The last two single-family lots of the 80 lots developed within Increment I were sold in the quarter ended March 31, 2024.

Increment II is not yet under development, and there is no assurance that development of such acreage will in fact 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. During the three and six months ended March 31, 2026, the Company received cash distributions of $323,000 (resulting in a net amount of $288,000, after distributing $35,000 to non-controlling interests) from the Kukio Resort Land Development Partnerships. Comparatively, there were no cash distributions received during the three and six months ended March 31, 2025.

Equity in income of affiliates was $338,000 for the three and six months ended March 31, 2026, as compared to nil for the three and six months ended March 31, 2025.

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


	Three months ended March 31,				Six months ended March 31,
	2026		2025		2026		2025
Revenue	$	5,398,000	$	4,293,000	$	6,444,000	$	5,592,000
Gross profit	$	2,734,000	$	2,179,000	$	3,158,000	$	2,658,000
Net earnings	$	2,060,000	$	1,599,000	$	2,013,000	$	1,551,000

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 nil 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. During periods in which equity‑method earnings were suspended, future equity‑method earnings were not recognized until the Company’s share of the Kukio Partnerships’ cumulative earnings subsequent to the suspension exceeded the amount of previously recognized excess distributions. During this suspended period, distributions received were recorded as equity in income of affiliates.

During the three months ended March 31, 2026, the Company's share of earnings from the Kukio Resort Land Development Partnerships exceeded distributions received and previously recognized excess distributions. Accordingly, the Company resumed equity-method earnings recognition during the period. For the three and six months ended March 31, 2026, the Company recognized equity in income of affiliates only to the extent its share of net earnings exceeded cumulative excess distributions recognized during the suspended period. As a result, $338,000 was recognized as equity in income from affiliates during the three and six months ended March 31, 2026 (three and six months ended March 31, 2025 - nil and nil), which resulted in an investment balance of $14,000 as at March 31, 2026 (nil as at September 30, 2025).

Sale of Interest in Leasehold Land

Kaupulehu Developments holds rights to receive payments from KD I and KD II resulting from the sale of lots and/or residential units within Increment I, which is now fully sold, and within Increment II, which is not yet developed (see Note 18).

With respect to Increment I, Kaupulehu Developments was 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. The last two single-family lots of the 80 lots developed within Increment I were sold in the quarter ended March 31, 2024.

Under the terms of the Increment II agreement with KD II, Kaupulehu Developments is entitled to 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 as to the priority payout. Such interests are limited to distributions or net profits interests and Barnwell does not have any partnership interests in KD II or KDK through its interest in Kaupulehu Developments. The arrangement also gives Barnwell 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 obligated to pay an amount equal to 0.72% and 0.20% of the cumulative net profits of KD II to KD Development and a pool of various individuals, respectively, all of whom are partners of KKM and are unrelated to Barnwell, in compensation for the agreement of these parties to admit the new development partner for Increment II. Such compensation will be reflected as the obligation becomes probable and the amount of the obligation can be reasonably estimated.

There is no assurance with regards to any payments in the future from 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.

Contracts to Sell Interests in Increment II

In November 2025, Kaupulehu Developments entered into an agreement with Mr. David Johnston, the son of Mr. Terry Johnston, a partner in Kaupulehu Developments, to surrender any and all remaining rights of Kaupulehu Developments for Increment II for the total consideration of $2,000,000. The purchaser paid an initial $70,000, which was recognized as revenue during the six months ended March 31, 2026. Additionally, the purchaser has the right to extend the closing by up to 2 years by making a $70,000 payment in each of the next 2 years, with those payments applied against the $2,000,000 purchase price. The transaction remains subject to the purchaser's election to proceed and other closing conditions. Because the agreement is subject to substantive contingencies and closing conditions that have not been satisfied, the criteria for revenue recognition under ASC 606 have not been met. Accordingly, no additional revenue has been recognized in the condensed consolidated financial statements.

Also in November 2025, pursuant to a unit purchase agreement, KDK agreed to sell KDK’s interests in Increment II to Mr. David Johnston for $2,109,000. The unit purchase agreement is subject to due diligence, and there is no certainty that the transaction will close. Furthermore, there is also no assurance on the timing or amounts that the general partner of KDK would distribute upon a closing. Again, there are substantive contingencies and closing conditions that have not been satisfied, and in turn no revenue has been recognized in the financial statements.

Investment in Leasehold Land Interest - Lot 4C

Kaupulehu Developments held 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 expired by its terms in December 2025.

7. OIL AND NATURAL GAS PROPERTIES AND ASSET RETIREMENT OBLIGATIONS

Oil and Natural Gas Property Dispositions

There were no significant oil and natural gas property dispositions during the three and six months ended March 31, 2026. The $282,000 of proceeds from the sale of oil and natural gas properties included in the Condensed Consolidated Statement of Cash Flows for the six months ended March 31, 2025 represents proceeds that were credited to our cash in October 2024 from a sale of properties that closed in late September 2024.

On August 8, 2025, Barnwell entered into an agreement with an independent third party to sell all of its working interests in its U.S. oil and natural gas assets for a sales price of $2,300,000. The sales price per the agreement was adjusted for customary purchase price adjustments to reflect the economic activity from the effective date of July 1, 2025 to the closing date August 8, 2025. The U.S. oil and natural gas assets were located in the states of Texas and Oklahoma and were owned by wholly-owned subsidiaries of Barnwell. As a result of the sale, the Company no longer owns any oil and natural gas assets in the U.S., however, the Company will continue to explore for oil and natural gas opportunities in the U.S.

On August 28, 2025, Barnwell entered into and completed a purchase and sale agreement with an independent third party and sold its interests in certain oil and natural gas properties located in the Medicine River area of Alberta, Canada. The sales price per the agreement was adjusted for customary purchase price adjustments to $288,000 in order to, among other things, reflect an economic closing date of September 30, 2025. The final determination of the customary adjustments to the purchase price has not yet been made; however, it is not expected to result in a material adjustment. The proceeds were credited to the full cost pool, with no gain or loss recognized, as the sale did not result in a significant alteration of the relationship between capitalized costs and proved reserves.

Impairment of Oil and Natural Gas Properties

Under the full cost method of accounting, the Company performs quarterly oil and natural gas ceiling test calculations. Changes in the 12-month rolling average first-day-of-the-month prices for oil, natural gas and natural gas liquids prices (except where prices are defined by contractual arrangements), the value of reserve additions as compared to the amount of capital expenditures to obtain them, and changes in production rates and estimated levels of reserves, future development costs and the market value of unproved properties, impact the determination of the maximum carrying value of oil and natural gas properties.

During the three and six months ended March 31, 2026, there were no ceiling test impairments. During the three and six months ended March 31, 2025, the Company incurred non-cash ceiling test impairments for its U.S. operations oil and natural gas properties of $52,000 and $665,000, respectively.

Asset Retirement Obligations

In 2021, the Company entered into an agreement with Canada’s Orphan Well Association (“OWA”), where the Company was required to pay abandonment and reclamation costs for certain properties in advance through two cash deposits, one for abandonment and one for reclamation. Barnwell has provided $975,000 in cumulative cash deposits to the OWA since the program began in the fall of 2021, and any amount remaining after completion of the abandonments was to be refunded to the Company, and then upon commencement of the reclamation program a new deposit was to be made for those estimated costs. To date, the excess deposits that relate to abandonment work have not yet been refunded but have been used to fund the reclamation part of the program and the Company now estimates that a portion of the unused deposit will instead be applied to future reclamation work over the next several years. The estimated current portion of the unused deposit was $173,000 and $173,000 at March 31, 2026 and September 30, 2025, respectively, and is included in “Other current assets” on the Company’s Condensed Consolidated Balance Sheets. The non-current portion of the unused deposit of $221,000 along with $93,000 of non-current receivables at March 31, 2026, is included in “Other non-current assets” on the Company’s Condensed Consolidated Balance Sheets (September 30, 2025 - $222,000 and $61,000, respectively).

8. 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. Effective December 31, 2019, the accrual of benefits for all participants in the Pension Plan and SERP was frozen and the plans were closed to new participants from that point forward.

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,
	2026		2025		2026		2025

Interest cost	$	102,000	$	97,000	$	26,000	$	24,000
Expected return on plan assets	(217,000)		(200,000)		—		—

Amortization of net actuarial gain	(13,000)		—		—		—

Net periodic benefit (income) cost	$	(128,000)	$	(103,000)	$	26,000	$	24,000


	Pension Plan				SERP
	Six months ended March 31,
	2026		2025		2026		2025

Interest cost	$	204,000	$	195,000	$	52,000	$	47,000
Expected return on plan assets	(435,000)		(400,000)		—		—

Amortization of net actuarial gain	(25,000)		—		—		—


Net periodic benefit (income) cost	$	(256,000)	$	(205,000)	$	52,000	$	47,000

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 planned to be made to the Pension Plan during fiscal 2026. The SERP plan is unfunded and Barnwell funds benefits when payments are made. Expected payments under the SERP for fiscal 2026 are expected to be $261,000. 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.

A portion of the Pension Plan’s investments is in publicly traded stocks, one of which is Barnwell’s common stock. At March 31, 2026 and September 30, 2025, the Pension Plan held 676,296 and 666,077 shares, respectively, of Barnwell common stock (see Note 18 for additional details).

9. INCOME TAXES

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


	Three months ended March 31,				Six months ended March 31,
	2026		2025		2026		2025
United States	$	(716,000)	$	(1,526,000)	$	(1,628,000)	$	(2,673,000)
Canada	(428,000)		150,000		(1,016,000)		(294,000)
	$	(1,144,000)	$	(1,376,000)	$	(2,644,000)	$	(2,967,000)

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


	Three months ended March 31,				Six months ended March 31,
	2026		2025		2026		2025
Current	$	6,000	$	187,000	$	(68,000)	$	203,000
Deferred	—		(25,000)		—		(34,000)
	$	6,000	$	162,000	$	(68,000)	$	169,000

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. The Company operates two subsidiaries in Canada, one of which is a U.S. corporation operating as a branch in Canada that is treated as a non-resident for Canadian tax purposes and thus has operating results that cannot be offset against or combined with the other Canadian subsidiary that files as a resident for Canadian tax purposes. 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.

10. SEGMENT INFORMATION

As disclosed in Note 3 “Discontinued Operations,” on March 14, 2025, the Company completed the sale of Water Resources, which represented the Company’s contract drilling segment. The financial results of the Company’s contract drilling business has been presented as discontinued operations and therefore is excluded from segment reporting. Accordingly, Barnwell’s continuing operations include the following two principal business segments:

Oil and Natural Gas Segment - Barnwell engages in oil and natural gas development, production, acquisitions and sales in Canada. Additionally, through its wholly-owned subsidiaries, Barnwell was, until August 8, 2025, involved in several non-operated oil and natural gas investments in Oklahoma and Texas.

Land Investment Segment - Barnwell owns leasehold land interests in Hawaii.

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,
	2026		2025		2026		2025
Revenues:
Oil and natural gas	$	2,483,000	$	3,543,000	$	5,113,000	$	7,440,000

Land investment	—		—		70,000		—
Other	14,000		22,000		45,000		33,000
Total before interest income	2,497,000		3,565,000		5,228,000		7,473,000
Interest income	38,000		4,000		53,000		30,000
Total revenues	$	2,535,000	$	3,569,000	$	5,281,000	$	7,503,000
Cost and expenses:
Oil and natural gas	$	1,843,000	$	1,986,000	$	3,914,000	$	4,482,000
Depletion, depreciation, and amortization:
Oil and natural gas	$	553,000	$	753,000	$	1,144,000	$	1,657,000

Other	8,000		1,000		9,000		1,000
Total depletion, depreciation, and amortization	$	561,000	$	754,000	$	1,153,000	$	1,658,000
Impairment:
Oil and natural gas	$	—	$	52,000	$	—	$	665,000



Operating profit (before general and administrative expenses):
Oil and natural gas	$	87,000	$	752,000	$	55,000	$	636,000

Land investment	—		—		70,000		—
Other	6,000		21,000		36,000		32,000

Total operating profit	93,000		773,000		161,000		668,000
Equity in income of affiliates:
Land investment	338,000		—		338,000		—
General and administrative expenses	(1,521,000)		(2,162,000)		(3,137,000)		(3,325,000)
Foreign currency gain (loss)	(58,000)		(10,000)		(11,000)		(341,000)
Interest expense	—		1,000		—		(1,000)
Interest income	38,000		4,000		53,000		30,000


Loss from continuing operations before income taxes	$	(1,110,000)	$	(1,376,000)	$	(2,596,000)	$	(2,969,000)

Capital Expenditures:


	Six months ended March 31,
	2026		2025
Oil and natural gas	$	222,000	$	112,000

Other	—		—
Total	$	222,000	$	112,000

Oil and natural gas capital expenditures include acquisitions as well as changes to capitalized asset retirement obligations, including revisions of asset retirement obligations (see Note 7 for additional details).

Assets By Segment:



	March 31, 2026		September 30, 2025
Oil and natural gas (1)
Canada	$	8,516,000	$	11,118,000



Other:
Cash and cash equivalents	4,016,000		2,886,000


Asset for retirement benefits	6,184,000		5,928,000
Corporate and other	2,831,000		880,000
Total	$	21,547,000	$	20,812,000

______________

(1) Primarily located in the province of Alberta, Canada.

Long-Lived Assets By Geographic Area:


	March 31, 2026		September 30, 2025
United States	$	6,198,000	$	5,965,000
Canada	8,928,000		9,617,000
Total	$	15,126,000	$	15,582,000

Revenue By Geographic Area:


	Three months ended March 31,				Six months ended March 31,
	2026		2025		2026		2025
United States	$	—	$	376,000	$	70,000	$	731,000
Canada	2,497,000		3,189,000		5,158,000		6,742,000
Total (before interest income)	$	2,497,000	$	3,565,000	$	5,228,000	$	7,473,000

11. 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 based upon continuing operations for the three and six months ended March 31, 2026 and 2025.


		Three months ended March 31, 2026
		Oil and natural gas		Land investment		Other		Total
Revenue streams:
	Oil	$	1,783,000	$	—	$	—	$	1,783,000
	Natural gas	469,000		—		—		469,000
	Natural gas liquids	231,000		—		—		231,000


	Other	—		—		14,000		14,000
	Total revenues before interest income	$	2,483,000	$	—	$	14,000	$	2,497,000
Geographical regions:
	United States	$	—	$	—	$	—	$	—
	Canada	2,483,000		—		14,000		2,497,000
	Total revenues before interest income	$	2,483,000	$	—	$	14,000	$	2,497,000
Timing of revenue recognition:
	Goods transferred at a point in time	$	2,483,000	$	—	$	14,000	$	2,497,000


		Three months ended March 31, 2025
		Oil and natural gas		Land investment		Other		Total
Revenue streams:
	Oil	$	2,601,000	$	—	$	—	$	2,601,000
	Natural gas	488,000		—		—		488,000
	Natural gas liquids	454,000		—		—		454,000


	Other	—		—		22,000		22,000
	Total revenues before interest income	$	3,543,000	$	—	$	22,000	$	3,565,000
Geographical regions:
	United States	$	376,000	$	—	$	—	$	376,000
	Canada	3,167,000		—		22,000		3,189,000
	Total revenues before interest income	$	3,543,000	$	—	$	22,000	$	3,565,000
Timing of revenue recognition:
	Goods transferred at a point in time	$	3,543,000	$	—	$	22,000	$	3,565,000


		Six months ended March 31, 2026
		Oil and natural gas		Land investment		Other		Total
Revenue streams:
	Oil	$	3,686,000	$	—	$	—	$	3,686,000
	Natural gas	940,000		—		—		940,000
	Natural gas liquids	487,000		—		—		487,000


	Other	—		70,000		45,000		115,000
	Total revenues before interest income	$	5,113,000	$	70,000	$	45,000	$	5,228,000
Geographical regions:
	United States	$	—	$	70,000	$	—	$	70,000
	Canada	5,113,000		—		45,000		5,158,000
	Total revenues before interest income	$	5,113,000	$	70,000	$	45,000	$	5,228,000
Timing of revenue recognition:
	Goods transferred at a point in time	$	5,113,000	$	70,000	$	45,000	$	5,228,000


		Six months ended March 31, 2025
		Oil and natural gas		Land investment		Other		Total
Revenue streams:
	Oil	$	5,744,000	$	—	$	—	$	5,744,000
	Natural gas	837,000		—		—		837,000
	Natural gas liquids	859,000		—		—		859,000

	Contingent residual payments	—		—		—		—
	Other	—		—		33,000		33,000
	Total revenues before interest income	$	7,440,000	$	—	$	33,000	$	7,473,000
Geographical regions:
	United States	$	731,000	$	—	$	—	$	731,000
	Canada	6,709,000		—		33,000		6,742,000
	Total revenues before interest income	$	7,440,000	$	—	$	33,000	$	7,473,000
Timing of revenue recognition:
	Goods transferred at a point in time	$	7,440,000	$	—	$	33,000	$	7,473,000

Contract Balances

The following table provides the balances of our receivables from contracts with customers which is included in "Accounts and other receivables, net of allowance for credit losses" in the accompanying Condensed Consolidated Balance Sheets.


	March 31, 2026		September 30, 2025		September 30, 2024
Accounts receivables from contracts with customers	$	1,051,000	$	913,000	$	1,472,000

12. 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,
	2026		2025		2026		2025
Foreign currency translation:
Beginning accumulated foreign currency translation	$	268,000	$	313,000	$	295,000	$	220,000
Change in cumulative translation adjustment	39,000		(3,000)		12,000		90,000


Net current period other comprehensive (loss) income	39,000		(3,000)		12,000		90,000
Ending accumulated foreign currency translation	307,000		310,000		307,000		310,000
Retirement plans:
Beginning and ending accumulated retirement plans benefit income	2,347,000		1,723,000		2,347,000		1,723,000






Accumulated other comprehensive income, net of taxes	$	2,654,000	$	2,033,000	$	2,654,000	$	2,033,000

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 8 for additional details).

13. FAIR VALUE MEASUREMENTS

The carrying values of cash and cash equivalents, accounts and other receivables, note receivable, 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 assumptions used in the calculation of estimated discounted cash flows were primarily Level 3 assumptions; assumptions 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.

14. DEBT

Insurance Premium Financing

In March 2025, the Company entered into a short-term financing agreement with a third-party to finance the Company’s directors and officers insurance premium in the amount of $183,000, with a term of 11 months and an annual interest rate of 9.4%. The Company made a down payment of $15,000 and was required to make monthly principal and interest payments of $16,000 over the term of the agreement, which was set to mature in February 2026. The insurance premium financing was repaid in full in September 2025. As at March 31, 2026, the Company has no debt.

15. STOCKHOLDERS' EQUITY

Private Placement Offering

On November 24, 2025, the Company entered into a securities purchase agreement (the “Purchase Agreement”) with certain investors (the “Purchasers”), including certain directors of the board of directors of the Company pursuant to which the Company agreed to issue and sell an aggregate of: (i) 2,221,141 shares of its common stock, and (ii) warrants (the “Common Warrants”) to purchase up to 1,029,104 shares of the Company's common stock (the “Warrant Shares”) in a private placement offering of the Company’s securities (the “Offering”). The directors of the Company participating as Purchasers in the Offering and certain other Purchasers did not receive any Common Warrants. The Offering closed on November 28, 2025 (the “Closing Date”) and the gross proceeds received from the Offering were approximately $2,443,000. Net proceeds from the offering were $2,408,000, with $35,000 issuance costs incurred to register for resale such common stock and Warrants Shares.

The price of the shares of common stock sold in the private placement was $1.10 per share. The Common Warrants have an exercise price of $1.65 per share, can be exercised starting one hundred eighty (180) days following the date of closing of the Offering (the “Initial Exercise Date”) and will be exercisable for three years following the Initial Exercise Date. The Company estimated the fair value of a Common Warrant on the grant date to be $0.30, totaling an aggregate of $309,000, using a Black Sholes model. The Company allocated $4,000 of issuance costs to the Common Warrants, resulting in a net Common Warrant value of $305,000.

In connection with the transaction, and conditioned upon the Closing, one of the Purchasers, Mr. Bradley L. Radoff, had the right to appoint a director to the Company’s board of directors. Accordingly, the Company has appointed Mr. Radoff’s designee, Mr. Joshua E. Schechter, to the Board of Directors, effective November 28, 2025, to serve until the Company’s next annual meeting of stockholders.

The Company filed a registration statement on Form S-3 (File No. 333-292684) with the Securities and Exchange Commission (the "SEC") on January 12, 2026 ("January 2026 Registration Statement"), which was declared effective on January 30, 2026. The registration statement includes a resale prospectus covering up to 3,250,245 shares of the Company’s common stock issued or issuable pursuant to the Purchase Agreement, consisting of 2,221,141 shares of common stock and up to 1,029,104 Warrant Shares, which may be offered from time to time by the selling stockholders named therein.

At-the-Market Equity Offering Program

The aforementioned January 2026 Registration Statement also included a "shelf prospectus" pursuant to which the Company may offer and sell up to $50,000,000 in securities, in aggregate. On February 25, 2026, the Company entered into a sales agreement (the "Sales Agreement") with Roth Capital Partners, LLC (the "Sales Agent"), relating to the shares of our common stock, par value $0.50 per share, under which the Company may, from time to time, sell shares of the Company’s common stock having an aggregate offering price of up to $50,000,000 in “at the market” offerings through or to the Sales Agent. Due to the offering limitations applicable to the Company under General Instruction I.B.6. of Form S-3 and the Company's public float as calculated in accordance therewith as of February 25, 2026, the Company agreed to limit the issuance and sales of securities under this facility to $3,200,000 worth of shares of common stock. The Company issued and sold an aggregate of 926,403 shares under this agreement during the three months ended March 31, 2026. The gross proceeds received from this Sales Agreement throughout the period totaled $1,133,000 reflecting an average gross sales price of $1.22 per share. Net proceeds totaled $957,000, with $28,000 in commissions and $148,000 in fees associated with issuance costs, including legal and accounting costs.

Common Stock Issued for Services

On October 27, 2025, Barnwell Industries, Inc. appointed Philip Patman, Jr. as the Company’s Executive Vice President Finance and in connection with Mr. Patman’s appointment, the Company entered into an executive employment agreement with Mr. Patman, dated, and effective, as of October 27, 2025 (the “Employment Agreement”). Pursuant to the terms of the Employment Agreement, on October 27, 2025, Mr. Patman received a stock award of 83,207 shares of the Company’s common stock. The fair value of the share on grant date were $101,000 ($1.21 per share using the closing price of the Company’s common stock on October 27, 2025).

Stock Options

On October 27, 2025, Board of Directors of the Company (the "Board") issued 185,000 incentive stock options to Mr. Patman, dated, and effective, as of October 27, 2025 under the Employment Agreement, vesting according to the following schedule: 34% of the total on October 27, 2026; 33% of the total on October 27, 2027; and 33% of the total on October 27, 2028. The stock option has a term of ten years and an exercise price of $1.21 per share (the closing price of the Company’s common stock on October 27, 2025).

The following assumptions were used in estimating the fair value for equity-classified stock options granted on October 27, 2025:



Number of shares			185,000
Expected volatility			62.0%
Expected dividends			None
Expected term (in years)			6.0
Risk-free interest rate			3.61%
Expected forfeitures			None
Fair value per share			$0.73

The application of alternative assumptions could produce significantly different estimates of the fair value of share-based compensation, and consequently, the related costs reported in the “General and administrative” expenses in the Condensed Consolidated Statements of Operations.

The following table summarizes Barnwell’s equity-classified stock options activity from October 1, 2025 through March 31, 2026:


Options	Shares	Weighted- Average Exercise Price		Weighted- Average Remaining Contractual Term	Aggregate Intrinsic Value
Outstanding at October 1, 2025	415,000	$	3.38
Granted	185,000	1.21
Exercised	—	—
Expired/Forfeited	(160,000)	3.45
Outstanding at March 31, 2026	440,000	$	2.44	6.8	$	—
Exercisable at March 31, 2026	255,000	$	3.33	4.9	$	—

Compensation cost for stock option awards is measured at the grant date based on the fair value of the award and is recognized as an expense over the requisite service period. During the three and six months ended March 31, 2026, the Company recognized share-based compensation expense related to stock options of $20,000 and $35,000, respectively. There was no share-based compensation expense related to stock options during the three and six months ended March 31, 2025. The remaining unrecognized compensation cost related to stock options as of March 31, 2026 was $99,000 (nil - September 30, 2025).

Restricted Stock Units

On October 8, 2025, the Board granted a total of 133,335 restricted stock units to the independent directors of the Board as partial payment of director fees for their service as members of the Board. The restricted stock units vest ratably over a three-year period, subject to the director’s continued service through the applicable vesting dates.

On October 27, 2025, the Board granted a total of 83,208 restricted stock unit awards pursuant to the Employment Agreement, vesting according to the following schedule: 34% of the total on October 27,

2026; 33% of the total on October 27, 2027; and 33% of the total on October 27, 2028, subject to the director’s continued service through the applicable vesting dates.

On December 3, 2025, the Board granted a total of 43,860 restricted stock units to the appointed independent director of the Board as partial payment of director fees for his service as a member of the Board. The restricted stock units vest ratably over a three-year period, subject to the director’s continued service through the applicable vesting dates.

On December 10, 2025, the Board granted a total of 28,038 restricted stock units to an officer and several directors of the Board as partial payment of compensation for their service as an officer and members of the Board. The restricted stock units vest over a one year period, subject to the person's continued service through the applicable vesting dates.

On January 26, 2026, the Board granted a total of 75,000 shares of restricted stock to an independent consultant as payment for consulting services rendered to the Company. The restricted shares vest in equal monthly installments over a one‑year period beginning in January 2026, subject to the consultant’s continued service through the applicable vesting dates.

The following table summarizes Barnwell’s restricted stock unit activity from October 1, 2025 through March 31, 2026:


Restricted Stock Units	Shares	Weighted-Average Grant Date Fair Value
Nonvested at October 1, 2025	154,174	$	2.07
Granted	363,441	1.22
Vested	(40,750)	1.43
Forfeited	—	—
Nonvested at March 31, 2026	476,865	$	1.48

Compensation cost for restricted stock unit awards is measured at fair value and is recognized as an expense over the requisite service period. During the three and six months ended March 31, 2026, the Company recognized share-based compensation expense related to restricted stock units of $108,000 and $187,000, respectively. During the three and six months ended March 31, 2025, the Company recognized share-based compensation expense related to restricted stock units of $60,000 and $129,000, respectively. As of March 31, 2026, the total remaining unrecognized compensation cost related to nonvested restricted stock units was $407,000, which is expected to be recognized over the weighted-average remaining requisite service period of 1.2 years.

Limited-Duration Shareholder Rights Plan

On January 26, 2026, the Company’s then-existing shareholder rights plan expired in accordance with its terms.

As of January 30, 2026, the Company adopted a new shareholder rights plan (“Rights Plan”) by entering into a Rights Agreement (the “Rights Agreement”), dated as of January 30, 2026, between the Company and Broadridge Corporate Issuer Solutions, LLC, as rights agent. Pursuant to the Rights Plan, the Board authorized and declared a dividend distribution of one right (each, a “Right”) for each

outstanding share of common stock, payable to holders of record as of the close of business on February 13, 2026 (the “Record Date”).

Under the Rights Agreement, each outstanding share of common stock carries one preferred share purchase right. Subject to certain exceptions, the Rights become exercisable if a person or group acquires beneficial ownership of 20% or more of the Company’s outstanding common stock. Shareholders who beneficially owned 20% or more of the Company’s outstanding common stock as of the adoption date of the Rights Plan will not trigger the Rights Plan unless they acquire beneficial ownership of additional shares representing more than 0.25% of the Company’s outstanding common stock, subject to certain exceptions. The Rights Plan expires on July 29, 2026, unless earlier redeemed, exchanged, or terminated in accordance with the Rights Agreement.

The preceding description of the Rights Agreement is qualified in its entirety by reference to the full text of the Rights Agreement, a copy of which has been filed as Exhibit 4.1 to the Company’s Current Report on Form 8-K that was filed with the SEC on January 30, 2026.

16. 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, other than the shareholder contest actions discussed elsewhere in this filing.

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


	Six months ended March 31,
	2026		2025
Supplemental disclosure of cash flow information:
Cash paid during the period for:

Income taxes, net of refunds	$	—	$	168,000

Capital expenditure accruals related to oil and natural gas exploration and development decreased $27,000 and $2,259,000 during the six months ended March 31, 2026 and 2025, respectively. Additionally, capital expenditure accruals related to oil and natural gas asset retirement obligations increased nil and $149,000 during the six months ended March 31, 2026 and 2025, respectively.

18. 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 6.

Barnwell Pension Plan

Effective June 2025, the Pension Plan owned more than 5% of the Company's common shares outstanding. On July 3, 2025, the Barnwell Industries, Inc. Employees’ Pension Plan Trust filed a Schedule 13D with the Securities and Exchange Commission, reporting beneficial ownership of 520,350 shares of Barnwell common stock representing more than 5% of the Company’s common shares outstanding. As of September 30, 2025, the Pension Plan held 666,077 shares of Barnwell common stock. As of March 31, 2026, the Pension Plan held 676,296 shares of Barnwell common stock. All the shares purchased by the Pension Plan were made on the open market through a brokerage account.

Account payable - related parties

During fiscal year 2025, a Special Committee of the Board of Directors of the Company engaged Skadden, Arps, Slate, Meagher & Flom LLP (“Skadden”) to provide legal services related to various governance matters, including proxy and consent solicitations and related litigation involving a significant stockholder. A partner of Skadden who advised the Company is the brother of a member of the Company’s Board of Directors.

The Company incurred $871,000 of legal fees with Skadden during fiscal year 2025. These amounts were fully recognized as legal expenses in the Company’s consolidated statements of operations in the periods in which the services were rendered. The identified matter relates solely to the classification of the related payable on the balance sheet and the omission of related‑party disclosure in previously issued financial statements.

During the quarter ended March 31, 2026, the Company corrected the classification of the related payable to accounts payable - related parties and included the required related‑party disclosures. This correction had no impact on the Company’s consolidated statements of operations, cash flows, or previously reported net income for any period presented.

At March 31, 2026, the Company had $92,000 of accounts payable due to Skadden, which is classified as "Accounts payable - related party" in the accompanying Condensed Consolidated Balance Sheets ($246,000 at September 30, 2025).

19. REVISION OF PREVIOUSLY ISSUED FINANCIAL STATEMENTS

The Company identified certain errors in its previously issued September 30, 2025 consolidated financial statements related to the presentation and disclosure of legal fees related to various governance matters, including proxy and consent solicitations and related litigation involving a significant stockholder. A partner of the law firm engaged by the Company was an immediate family member of a member of the Company’s Board of Directors.

Management evaluated these errors in accordance with SEC Staff Accounting Bulletin Number 99, Materiality (“SAB 99”), which is since codified in Accounting Standards Codification 250, Accounting Changes and Error Corrections (“ASC 250”).

The Company performed a quantitative and qualitative assessment of the errors and determine that the errors did not have a material impact to previously issued financial statements. These amounts were fully recognized as legal expenses in the Company’s consolidated statements of operations in the periods in which the services were rendered. The identified matter relates solely to the classification of the related-

party payable on the balance sheets and statements of cash flows and the omission of related‑party disclosure in previously issued financial statements. Management noted that the presentation and disclosure errors identified resulted in a net zero impact to total operating costs and expenses, income from operations, or net income. Therefore, these immaterial errors have been corrected in the current period in accordance with the guidance under SAB 99 and ASC 250.

The unaudited condensed consolidated financial statements presented herein for the three and six months ended March 31, 2026 and 2025 have been revised to correct the errors described above in accordance with SEC SAB Topic 1.M, as codified in ASC 250.

20. SUBSEQUENT EVENTS

On April 9, 2026, pursuant to SEC Rule 424(b)(5), the Company filed a prospectus supplement amending and supplementing its prospectus supplement dated January 30, 2026 under Form S-3. This prospectus supplement increased the limit on the issuance and sales of securities under its Sales Agreement with Roth Capital (see Note 15 "Stockholders' Equity") to $4,298,000. For the period from April 1, 2026 through the date of filing of these condensed consolidated financial statements, the Company issued an additional 884,093 shares of its common stock under the sales agreement, at an average sales price of $1.32 per share, resulting in gross proceeds of $1,164,000.

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 2025 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 and the calculation of our income taxes, all of which are discussed in our 2025 Annual Report. There have been no significant changes to these critical accounting policies and estimates during the three and six months ended March 31, 2026. We continue to monitor our accounting policies to ensure proper application of current rules and regulations.

Current Outlook

Going Concern

Overview

As disclosed in Note 3 “Discontinued Operations” to the Condensed Consolidated Financial Statements (unaudited) included in this report, on March 14, 2025, the Company entered into and completed the sale of its wholly-owned subsidiary, Water Resources. Water Resources drilled water wells and installed and repaired water pumping systems in Hawaii and represented our contract drilling segment. As a result of the sale, the Company has classified the related assets and liabilities and the results of its contract drilling business as discontinued operations in the condensed consolidated financial statements for all periods presented.

Accordingly, Barnwell’s continuing operations is engaged in the following lines of business: 1) acquiring, developing, producing and selling oil and natural gas in Canada (oil and natural gas segment) and 2) leasehold land interests in Hawaii (land investment 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 was, until August 8, 2025, involved in several non-operated oil and natural gas investments in Oklahoma and Texas.

Land Investment Segment

Through Barnwell’s 77.6% interest in Kaupulehu Developments, 75.0% 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. However, in the quarter ended March 31, 2024, the last two remaining single-family lots of the 80 lots developed within Increment I were sold and there are no more lots available for sale in Increment I. Kaupulehu Developments was entitled to receive payments from KD I based on 10% of the gross receipts from KD I’s sales at Increment I.

•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 in fact occur. No definitive development plans have been made by KD II, the developer of Increment II, as of the date of this report.

•An indirect 19.60% non-controlling ownership interest in KD Kukio Resorts, LLLP, KD Maniniowali, LLLP and KD I and an indirect 10.80% non-controlling ownership interest in KD II through KDK. 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 was the developer of Kaupulehu Lot 4A Increments I and II. The partnerships derive income from the sale of residential parcels in Increment I, which is now completely sold, as well as from commissions on real estate resales by the real estate sales office and revenues resulting from the sale of private club memberships, a few of which remain available for sale.

The Kukio Resort Land Development Partnerships have remaining Increment I obligations to complete project amenities, infrastructure, beautification, and restoration of certain areas and therefore has yet to fully recognize its deferred profit on the Increment I project as a whole. The Increment I deferred profit at March 31, 2026 for the Kukio Resort Land Development Partnerships as a whole was approximately $4,000,000; the recognition of which is dependent upon the completion of the Increment I obligations. The Kukio Resort Land Development Partnerships have accrued estimated costs of these obligations of approximately $2,600,000. The Kukio Resort Land Development Partnerships currently appears to have the ability to fund those obligations but there are no assurances that it can ultimately do so in the future if unforeseen events occur. The Kukio Resort Land Development Partnerships will recognize the Increment I deferred revenue and costs of sales on a percentage completion basis as the cash outlays to complete the remaining project obligations are made. The Kukio Resort Land Development Partnerships’ deferred profit and accrued costs to complete are not reflected in Barnwell’s Condensed Consolidated Balance Sheets as we account for our investment in the Kukio Resort Land Development Partnerships under the equity method of accounting. No percentage of sales payments will be earned by Barnwell on any future recognition of Increment I deferred profit as such payments were already fully earned and received based on cash received by the Kukio Resort Land Development Partnerships as the Increment I lots were sold.

•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 expired by its terms in December 2025.

•Contracts to Sell Interests in Increment II

◦In November 2025, Kaupulehu Developments entered into an agreement with Mr. David Johnston, the son of Mr. Terry Johnston, a partner in Kaupulehu Developments, to surrender any and all remaining rights of Kaupulehu Developments for Increment II for the total consideration of $2,000,000. The purchaser paid an initial $70,000 which was recognized as revenue during the six months ended March 31, 2026. Additionally, the purchaser has the right to extend the closing by up to two years by making a $70,000 payment in each of the next two years, with those payments applied against the $2,000,000 purchase price. The transaction remains subject to the purchaser's election to proceed and

other closing conditions. Because the agreement is subject to substantive contingencies and closing conditions that have not been satisfied, the criteria for revenue recognition under ASC 606 have not been met. Accordingly, no additional revenue has been recognized in the financial statements.

◦Also in November 2025, pursuant to a unit purchase agreement, KDK agreed to sell KDK’s interests in Increment II to Mr. David Johnston for $2,109,000. The unit purchase agreement is subject to due diligence, and there is no certainty that the transaction will close. Furthermore, there is also no assurance on the timing or amounts that the general partner of KDK would distribute upon a closing. Again, there are substantive contingencies and closing conditions that have not been satisfied, and in turn no revenue has been recognized in the financial statements.

Results of Operations

Summary of Results From Continuing Operations

The net loss from continuing operations attributable to Barnwell for the three months ended March 31, 2026 totaled $1,150,000, a $388,000 decrease from a net loss from continuing operations attributable to Barnwell of $1,538,000 for the three months ended March 31, 2025. The following factors affected the results of operations for the three months ended March 31, 2026 as compared to the prior year period:

•General and administrative expenses decreased $641,000 due to $755,000 less professional service fees due to the fees for legal services, proxy solicitation, proxy advisory and public relations costs related to a shareholder consent solicitation and proxy contest in the prior year period compared to the same period in the current year, $96,000 lower personnel costs from the closing of the Hawaii office on January 31, 2026, and a $26,000 insurance recovery. These decreases were partially offset by increases in share based compensation expense and other costs in the current year period as compared to the same period in the prior year;

•A $338,000 increase in equity in income from affiliates and a $34,000 increase in net income attributable to non-controlling interest.

Partially offset by:

•A $665,000 decrease in oil and natural gas segment operating results primarily attributable to a $1,060,000 decrease in oil and natural gas revenues, partially offset by a $200,000 decrease in oil and natural gas depletion, a $143,000 decrease in the oil and natural gas operating expenses, and decreases of $52,000 in the ceiling test impairment.

The decrease in oil and natural gas revenues, expenses and depletion was due in part to a decrease in net production resulting from the August 8, 2025 sale of U.S. oil and natural gas assets and the August 28, 2025 sale of Barnwell's interest in certain oil and natural gas properties in Canada. For the three months ended March 31, 2025, the U.S. oil and natural gas assets contributed oil and natural gas revenues of $376,000, oil and natural gas operating expenses of $139,000, depletion of $86,000 and impairments of $52,000. For the three months ended March 31, 2025, the interest of certain oil and natural gas properties in Canada that were sold contributed oil and natural gas revenues of $84,000, oil and natural gas operating expenses of $46,000, and depletion of $25,000.

Also contributing to the decrease in oil and natural gas segment operating results was the impact of natural declines in production from wells in the Company's Twining area. The decline was 18% overall in the three months ended March 31, 2026 as compared to the same period in the prior year. This includes the impact of the Company's newest horizontal well being in flush production mode in the three months ended March 31, 2025. Excluding the effect of this well, the decline rate was 12% in the three months ended March 31, 2026 as compared to the same period in the prior year. Lower realized oil prices also contributed to the decrease in oil and natural gas segment operating results.

•A $68,000 decrease in foreign currency impacts due to a $58,000 foreign currency loss recorded in the current period as compared to a $10,000 gain recorded in the prior year period due to the effects of foreign currency exchange rate changes on intercompany loans and advances as a result of changes in the U.S. dollar against the Canadian dollar.

The net loss from continuing operations attributable to Barnwell for the six months ended March 31, 2026 totaled $2,576,000, a $560,000 decrease from a net loss from continuing operations attributable to Barnwell of $3,136,000 for the six months ended March 31, 2025. The following factors affected the results of operations for the six months ended March 31, 2026 as compared to the prior year period:

•General and administrative expenses decreased $188,000 due to $642,000 less professional service fees due to the fees for legal services, proxy solicitation, proxy advisory and public relations costs related to a shareholder consent solicitation and proxy contest in the prior year period compared to the same period in the current year, and a $78,000 insurance recovery. This was partially offset by higher salaries and wages due to bonuses and retirement payments related to the Hawaii office closure on January 31, 2026 and higher share based compensation expense in the current year period as compared to the same period in the prior year;

•Equity in income from affiliates increased $338,000, net income attributable to non-controlling interests increased $50,000, and land investment segment operating results, before non-controlling interests’ share of such profits, increased $70,000 due to the Kukio Resort Land Development Partnerships' sale of two lots in the current year period, whereas there were no lots sold in the prior year period; and

•A $581,000 decrease in oil and natural gas segment operating results primarily attributable to a $2,327,000 decrease in oil and natural gas revenues, partially offset by a $513,000 decrease in oil and natural gas depletion, a $568,000 decrease in the oil and natural gas operating expenses, and decreases of $665,000 in the ceiling test impairment.

The decrease in oil and natural gas revenues, expenses and depletion was due in part to a decrease in net production resulting from the August 8, 2025 sale of U.S. oil and natural gas assets and the August 28, 2025 sale of Barnwell's interest in certain oil and natural gas properties in Canada. For the six months ended March 31, 2025, the U.S. oil and natural gas assets contributed oil and natural gas revenues of $731,000, oil and natural gas operating expenses of $260,000, depletion of $225,000 and impairments of $665,000. For the six months ended March 31, 2025, the interest of certain oil and natural gas properties in Canada that were sold contributed oil and natural gas revenues of $165,000, oil and natural gas operating expenses of $135,000, and depletion of $49,000.

Lower realized oil price and natural decline in the retained Canadian properties also contributed to the decrease in oil and natural gas segment operating results.

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 condensed consolidated statements of operations.

The average exchange rate of the Canadian dollar to the U.S. dollar was flat and increased 2% in the three and six months ended March 31, 2026, respectively, as compared to the same periods in the prior year. The exchange rate of the Canadian dollar to the U.S. dollar was flat at March 31, 2026, as compared to September 30, 2025. Accordingly, the assets, liabilities, stockholders’ equity, 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, 2026 was income of $39,000, a $42,000 increase from a loss of $3,000 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, 2026 was income of $12,000, a $78,000 decrease from income of $90,000 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, 2026 and 2025 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)
	2026		2025		$		%
Natural Gas (Mcf)*	$	2.11	$	1.84	$	0.27	15	%
Oil (Bbls)**	$	55.66	$	61.02	$	(5.36)	(9	%)
Natural gas liquids (Bbls)**	$	28.88	$	32.43	$	(3.55)	(11	%)


	Average Price Per Unit
	Six months ended				Increase
	March 31,				(Decrease)
	2026		2025		$		%
Natural Gas (Mcf)*	$	1.94	$	1.43	$	0.51	36	%
Oil (Bbls)**	$	54.00	$	63.39	$	(9.39)	(15	%)
Natural gas liquids (Bbls)**	$	27.08	$	29.61	$	(2.53)	(9	%)


	Net Production
	Three months ended		Increase
	March 31,		(Decrease)
	2026	2025	Units	%
Natural Gas (Mcf)*	211,000	253,000	(42,000)	(17	%)
Oil (Bbls)**	32,000	43,000	(11,000)	(26	%)
Natural gas liquids (Bbls)**	8,000	14,000	(6,000)	(43	%)


	Net Production
	Six months ended		Increase
	March 31,		(Decrease)
	2026	2025	Units	%
Natural Gas (Mcf)*	461,000	551,000	(90,000)	(16	%)
Oil (Bbls)**	67,000	91,000	(24,000)	(26	%)
Natural gas liquids (Bbls)**	18,000	29,000	(11,000)	(38	%)

_______________________________________

* 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 $87,000 operating profit before general and administrative expenses in the three months ended March 31, 2026, a decrease in operating results of $665,000 as compared to the $752,000 operating profit before general and administrative expenses generated during the same period of the prior year. This decrease is primarily attributable to a $1,060,000 decrease in oil and natural gas revenues, partially offset by a $200,000 decrease in oil and natural gas depletion, a $143,000 decrease in the oil and natural gas operating expenses, and decreases of $52,000 in the ceiling test impairment.

The oil and natural gas segment generated a $55,000 operating profit before general and administrative expenses in the six months ended March 31, 2026, a decrease in operating results of $581,000 as compared to the $636,000 operating profit before general and administrative expenses generated during the same period of the prior year. This decrease is primarily attributable to a $2,327,000 decrease in oil and natural gas revenues, partially offset by a $513,000 decrease in oil and natural gas depletion, a $568,000 decrease in the oil and natural gas operating expenses, and decreases of $665,000 in the ceiling test impairment.

The decrease in oil and natural gas revenues, expenses and depletion was due in part to a decrease in net production resulting from the August 8, 2025 sale of U.S. oil and natural gas assets and the August 28, 2025 sale of Barnwell's interest in certain oil and natural gas properties in Canada. For the six months ended March 31, 2025, the U.S. oil and natural gas assets contributed oil and natural gas revenues of $731,000, oil and natural gas operating expenses of $260,000, depletion of $225,000 and impairments of $665,000. For the six months ended March 31, 2025, the interest of certain oil and natural gas properties in Canada that were sold contributed oil and natural gas revenues of $165,000, oil and natural gas operating expenses of $135,000, and depletion of $49,000.

Lower realized oil price and natural decline in the retained Canadian properties also contributed to the decrease in oil and natural gas segment operating results.

The following table sets forth Barnwell’s oil and natural gas segment operating profit before general and administrative expenses by geographic location:


	Three months ended March 31,				Six months ended March 31,
	2026		2025		2026		2025
Operating profit (loss) (before general and administrative expenses)
Canada	$	87,000	$	653,000	$	55,000	$	1,055,000
United States (1)	—		99,000		—		(419,000)
Total operating profit	$	87,000	$	752,000	$	55,000	$	636,000

________________________

(1) The operating loss for the United States for the three and six months ended March 31, 2025 includes non-cash ceiling test impairments of $52,000 and $665,000, respectively.

Oil and natural gas revenues decreased $1,060,000 (30%) and $2,327,000 (31%) for the three and six months ended March 31, 2026, respectively, as compared to the same periods in the prior year, primarily due to decreases in natural gas, oil, and natural gas liquids production in the current year periods as compared to the same periods in the prior year. The decreases in production are in part the result of the sale of the U.S. oil and natural gas assets. These assets contributed revenues of $376,000 and $731,000 for the three and six months ended March 31, 2025, respectively. Also contributing to the decrease was the sale of Barnwell's interest in certain oil and natural gas properties in Canada, which contributed sales of $84,000 and $165,000 for the three and six months ended March 31, 2025, respectively. Revenues also decreased due to natural declines in the Company's Twining assets and a decrease in oil and natural gas liquids prices.

In February 2025, the Company amended certain of its Canadian purchase and sales contracts to change the sales price on 1,055 gross Mcf per day of the Canadian natural gas it sold during the period from April 1, 2025 to October 31, 2025 to a fixed index price before differentials of $1.95 Canadian dollars per Mcf, with remaining volumes continuing to be sold at spot prices. This per day volume of natural gas under this fixed index price contract was equivalent to approximately 45% and 42% of Canadian natural gas gross production per day for the three and six months ended March 31, 2026.

Additionally, in September 2025, the Company amended the sales price on 1,583 gross Mcf per day of the Canadian natural gas it will sell during the period from November 1, 2025 to March 31, 2026 to a fixed index price before differentials of $3.03 Canadian dollars per Mcf, with remaining volumes continuing to be sold at spot prices. This per day volume of natural gas under this fixed index price contract that will affect the period from November 1, 2025 to March 31, 2026, is equivalent to approximately 68% and 62% of Canadian natural gas gross production per day for the three and six months ended March 31, 2026. These natural gas contracts were eligible for and elected as normal purchase and normal sales exception contracts and were thus excluded from derivative accounting.

In November 2025, the Company amended certain of its Canadian purchase and sales contracts to change the sales price on 1,055 gross Mcf per day of the Canadian natural gas that it sold during the period from April 1, 2026 to October 31, 2026 to a fixed index price before differentials of $2.94 Canadian dollars per Mcf, with remaining volumes continuing to be sold at spot prices. This per day volume of natural gas under this fixed index price contract that will affect the period from April 1, 2026 to October 31, 2026, is equivalent to approximately 45% and 42% of Canadian natural gas gross production per day for the three and six months ended March 31, 2026. These natural gas contracts were eligible for and elected as normal purchase and normal sales exception contracts and were thus excluded from derivative accounting.

In June 2025, the Company amended the sales price on 100 gross barrels per day of the Canadian oil to be sold during the period from July 1, 2025 to December 31, 2025 to a fixed index price before differentials of $70.35 per net barrel, with remaining volumes continuing to be sold at spot prices. This per day volume of oil under this fixed index price contract affected the period from July 1, 2025 to December 31, 2025, is equivalent to approximately 28% and 27% of Canadian oil gross production per day for the three and six months ended March 31, 2026.

In January 2026, the Company amended the sales price on 100 gross barrels per day of the Canadian oil to be sold during the period from February 1, 2026 to July 31, 2026 to a fixed index price before differentials of $58.20 per net barrel, with remaining volumes continuing to be sold at spot prices. This per day volume of oil under this fixed index price contract that will affect the period from February 1, 2026 to July 31, 2026, is equivalent to approximately 28% and 27% of Canadian oil gross production per

day for the three and six months ended March 31, 2026. These oil contracts were eligible for and elected as normal purchase and normal sales exception contracts and were thus excluded from derivative accounting.

In March 2026, the Company amended the sales price on 50 gross barrels per day of the Canadian oil to be sold during the period from April 1, 2026 to June 30, 2026 to a fixed index price before differentials of $89.10 per net barrel, with remaining volumes continuing to be sold at spot prices. This per day volume of oil under this fixed index price contract that will affect the period from April 1, 2026 to June 30, 2026, is equivalent to approximately 14% and 14% of Canadian oil gross production per day for the three and six months ended March 31, 2026. These oil contracts were eligible for and elected as normal purchase and normal sales exception contracts and were thus excluded from derivative accounting.

Oil and natural gas operating expenses decreased $143,000 (7%) and 568,000 (13%) for the three and six months ended March 31, 2026, as compared to the same periods in the prior year, primarily due to decreases in production in the current year period due to the sale of the U.S. oil and natural gas properties and the sale of Barnwell's interest in certain oil and natural gas properties in Canada.

Oil and natural gas segment depletion decreased $200,000 (27%) and $513,000 (31%) for the three and six months ended March 31, 2026, as compared to the same periods in the prior year. The decrease was primarily due to decreases in production in the current year period as compared to the same periods in the prior year.

On August 8, 2025, Barnwell entered into an agreement with an independent third party to sell all of its working interest in U.S. oil and natural gas assets for a sales price of $2,300,000. The sales price per the agreement was adjusted for customary purchase price adjustments to reflect the economic activity from the effective date of July 1, 2025 to the closing date August 8, 2025. The U.S. oil and natural gas assets were located in the states of Texas and Oklahoma and were owned by wholly-owned subsidiaries of Barnwell. Barnwell will no longer own any oil and natural gas assets in the U.S. as a result of this sale. Operating revenues from these U.S. oil and natural gas properties represented 11% and 10% of the total oil and natural gas segment operating revenues for the three and six months ended March 31, 2025.

Contracts to Sell Interests in Increment II

General and Administrative Expenses

General and administrative expenses decreased $641,000 (30%) for the three months ended March 31, 2026 as compared to the same periods in the prior year due to $755,000 less professional service fees due to the fees for legal services, proxy solicitation, proxy advisory and public relations costs related to a shareholder consent solicitation and proxy contest in the prior year period compared to the same period in the current year, $96,000 lower personnel costs from the closing of the Hawaii office on January 31, 2026, and a $26,000 insurance recovery. These decreases were partially offset by increases in share based compensation expense and other costs in the current year period as compared to the same period in the prior year.

General and administrative expenses decreased $188,000 (6%) for the six months ended March 31, 2026 as compared to the same periods in the prior year due to $642,000 less professional service fees due to the fees for legal services, proxy solicitation, proxy advisory and public relations costs related to a shareholder consent solicitation and proxy contest in the prior year period compared to the same period in the current year, and a $78,000 insurance recovery. This was partially offset by higher salaries and wages due to bonuses and retirement payments related to the Hawaii office closure on January 31, 2026 and higher share based compensation expense in the current year period as compared to the same period in the prior year.

Depletion, Depreciation, and Amortization

Depletion, depreciation, and amortization decreased $193,000 (26%) and $505,000 (30%) for the three and six months ended March 31, 2026, as compared to the same periods in the prior year, primarily due to decreases in production, as discussed in the “Oil and natural gas” section above.

Impairment of Assets

During the three and six months ended March 31, 2026, the Company had no impairments to oil and natural gas properties.

During the three and six months ended March 31, 2025, the Company incurred a non-cash ceiling test impairment on our U.S. oil and natural gas properties of $52,000 and $665,000.

Foreign Currency (Gain) Loss

During the three and six months ended March 31, 2026, the Company recorded $58,000 and $11,000 in foreign currency losses, respectively, due to the effects of foreign exchange rate changes on

intercompany loans and advances as a result of changes in the exchange rate between the U.S. dollar against the Canadian dollar (three and six months ended March 31, 2025 - $10,000 foreign currency gain and $341,000 foreign currency loss, respectively). The foreign currency losses or gains from intercompany balances are included in our Condensed Consolidated Statements of Operations as the intercompany balances were not considered long-term in nature because management estimates that these intercompany balances will be settled in the future.

Equity in Income of Affiliates

Equity in income of affiliates was $338,000 for the three and six months ended March 31, 2026. Equity in income of affiliates was nil for the three and six months ended March 31, 2025 as there were no lots sold in the current year or prior year periods.

$323,000 of cash distributions were received during the three and six months ended March 31, 2026. Comparatively, there were no cash distributions received during the three and six months ended March 31, 2025.

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 determined that it would 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 would be recorded as equity in income of affiliates.

Income Taxes

Barnwell’s effective consolidated income tax rate from continuing operations, after adjusting loss from continuing operations before income taxes for non-controlling interests, was 1% and 3% for the three and six months ended March 31, 2026 as compared to 12% and 6% for the three and six months ended March 31, 2025.

tax liabilities, are not estimated to have a future benefit as tax credits or deductions. The Company operates two subsidiaries in Canada, one of which is a U.S. corporation operating as a branch in Canada that is treated as a non-resident for Canadian tax purposes and thus has operating results that cannot be offset against or combined with the other Canadian subsidiary that files as a resident for Canadian tax purposes. 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.

Net (Loss) 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 $34,000 and $48,000 for the three and six months ended March 31, 2026 as compared to net loss attributable to non-controlling interests of nil and $2,000 for the same periods in the prior year. The changes of $34,000 and $50,000 for the three and six months were primarily due to the increase 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 period in the prior year.

Net (Loss) Earnings From Discontinued Operations

Net earnings from discontinued operations was nil during the three and six months ended March 31, 2026 as compared to net loss from discontinued operations of $331,000 and $12,000 during the three and six months ended March 31, 2025.

On March 14, 2025, the Company completed the sale of Water Resources, which represented the Company’s contract drilling segment. The financial results of the Company’s contract drilling business has been presented as discontinued operations in the condensed consolidated financial statements for all periods presented. See Note 3 “Discontinued Operations” to the Condensed Consolidated Financial Statements (unaudited) included in this report for further discussion and additional disclosures related to discontinued operations.

Liquidity and Capital Resources

The Company has presented cash flows from discontinued operations in the accompanying Condensed Consolidated Statements of Cash Flows separately after the presentation of cash flows from operating, investing, and financing activities of continuing operations. See Note 3 “Discontinued Operations” to the Condensed Consolidated Financial Statements (unaudited) included in this report for further discussion and additional disclosures related to discontinued operations. The focus of this section, “Liquidity and Capital Resources,” is on the cash flows from continuing operations, which affects future liquidity and capital resources as the Company no longer has any significant continuing involvement with the discontinued operations after the sale.

At March 31, 2026, Barnwell had a working capital surplus of $2,152,000. Barnwell’s primary sources of liquidity are cash on hand of $4,016,000 and cash flow generated by our oil and natural gas operations, as cash flow from our land investment segment, if any, are expected to be intermittent and not significant to our liquidity.

Cash Flows From Continuing Operations

Cash flows used in continuing operations totaled $2,422,000 for the six months ended March 31, 2026, as compared to cash flows used in continuing operations of $854,000 for the same period in the prior year. This $1,568,000 decrease in operating cash flows was primarily due to lower operating results for the oil and natural gas segment in the current year period as compared to the same period in the prior year as a result of the sale of the U.S. oil and gas operations and the August 28, 2025 sale of Barnwell's interests in certain oil and natural gas properties in Canada, and lower realized oil prices. The change was also due to increased spending on asset retirement obligations as part of the Company's abandonment and reclamation initiatives, equity income from affiliates, and retirement plan payments relating to the SERP for retirements in the periods presented.

Cash flows provided by investing activities from continuing operations totaled $223,000 during the six months ended March 31, 2026, as compared to cash flows used in investing activities from continuing operations of $2,272,000 during the same period of the prior year. This $2,495,000 increase in investing cash flows was due to $2,391,000 lower investments in oil and natural gas properties in the current period compared to the prior period, $150,000 of payments received on the note receivable related to the sale of discontinued operations and $323,000 distribution from equity investees received in the current period, and $163,000 in cash divested from the sale of discontinued operations, net of proceeds in the prior year period. These increases were partially offset by a $250,000 dividend received from discontinued operations and $282,000 from the sale of oil and natural gas assets in the prior year period.

Cash flows provided by financing activities from continuing operations totaled $3,330,000 for the six months ended March 31, 2026, as compared to cash flows used in financing activities from continuing operations of $15,000 for the same period in the prior year. The $3,345,000 increase in financing cash flows was due to the November 24, 2025 private placement of 2,221,141 common shares at $1.10 per share and the At-the-Market Equity Offering Program ("ATM Program") sale of 926,403 common shares at an average price of $1.22 per share, which ATM Program began with the sales agreement dated February 25, 2026.

Oil and Natural Gas Capital Expenditures

Barnwell’s oil and natural gas capital expenditures, including accrued capital expenditures and excluding acquisitions and additions and revisions to estimated asset retirement obligations, totaled $113,000 and $223,000 for the three and six months ended March 31, 2026, as compared to $68,000 and $382,000 for the same periods in the prior year.

Oil and Natural Gas Property Dispositions

There were no significant oil and natural gas property dispositions during the three and six months ended March 31, 2026.

On August 8, 2025, Barnwell entered into an agreement with an independent third party to sell all of its working interest in U.S. oil and natural gas assets for a sales price of $2,300,000. The sales price per the agreement was adjusted for customary purchase price adjustments to reflect the economic activity from the effective date of July 1, 2025 to the closing date August 8, 2025. The U.S. oil and natural gas assets were located in the states of Texas and Oklahoma and were owned by wholly-owned subsidiaries of Barnwell. Barnwell no longer owns any oil and natural gas assets in the U.S. as a result of this sale.

On August 28, 2025, Barnwell entered into and completed a purchase and sale agreement with an independent third party and sold its interests in certain oil and natural gas properties located in the Medicine River area of Alberta, Canada. The sales price per the agreement was adjusted for customary purchase price adjustments to $288,000 in order to, among other things, reflect an economic closing date of September 30, 2025. The final determination of the customary adjustments to the purchase price was completed in the three months ended March 31, 2026 and resulted in a reduction in sales price of $16,000. The proceeds and adjustment were credited to the full cost pool, with no gain or loss recognized, as the sale did not result in a significant alteration of the relationship between capitalized costs and proved reserves.

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

As a smaller reporting company, we are not required to provide the information required by this Item 3.

ITEM 4. CONTROLS AND PROCEDURES

Disclosure Controls and Procedures

We have established disclosure controls and procedures to ensure that information relating to Barnwell, including its consolidated subsidiaries, required to be disclosed is accumulated and communicated to Barnwell's management, including its principal executive and principal financial officers, or person performing similar functions, as appropriate to allow timely decisions regarding required disclosure.

As of March 31, 2026, 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, 2026 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 the Securities and Exchange Commission's rules and forms.

Changes in Internal Control Over Financial Reporting

During December 2025 and January 2026, Barnwell experienced certain previously disclosed personnel changes within its accounting function in Canada, including one accounting team member taking short-term disability leave and two additional accounting personnel resigning on short notice. These changes occurred concurrently with the previously announced closure of the Honolulu office and the

transition of accounting responsibilities to Canada, which temporarily disrupted certain normal accounting workflows.

Management promptly implemented mitigation measures, including the engagement of experienced accounting consultants to augment existing financial staff and complete the closing of the quarter ending December 31, 2025, and to support the continued operation of Barnwell’s accounting and financial reporting processes. These consultants possess appropriate technical expertise and experience to perform their assigned responsibilities and one has been integrated into Barnwell’s established control framework.

Management evaluated these events and the related mitigation measures and determined that Barnwell’s internal control over financial reporting remained effective as of March 31, 2026. Other than the personnel changes described above and the engagement of supplemental accounting consultants as part of management’s mitigation efforts, there were no changes in Barnwell’s internal control over financial reporting during the quarter ended March 31, 2026 that materially affected, or are reasonably likely to materially affect, Barnwell’s internal control over financial reporting.

PART II - OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

See discussion of legal and regulatory matters in Note 16 “Contingencies” to the Condensed Consolidated Financial Statements (unaudited) included in Part I, Item 1 of this report, which is incorporated herein by reference.

ITEM 1A. RISK FACTORS

Factors that could cause our actual results to differ materially from those in this Quarterly Report are any of the risks described in “Part I, Item 1A. Risk Factors” in the Form 10-K. Any of these factors could result in a significant or material adverse effect on our results of operations or financial condition. Additional risk factors not presently known to us or that we currently deem immaterial may also impair our business or results of operations.

As of the date of this Quarterly Report, there were no material changes to the risks and uncertainties described in the section titled “Risk Factors” in the Form 10-K during the six months ended March 31, 2026.

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

Purchases of Equity Securities by the Issuer and Affiliated Purchasers

The following table provides information regarding purchases of Barnwell common stock by the Barnwell Industries, Inc. Employee's Pension Plan Trust during the three months ended March 31, 2026:


	(a)	(b)	(c)	(d)
Period	Total number of shares purchased (1)	Average price paid per share (1)	Total number of shares purchased as part of publicly announced plans or programs (2)	Maximum number of shares that may yet be purchased under the plans or programs (2)
January 1-31, 2026	—	—	—	—
February 1-28, 2026	—	—	—	—
March 1-31, 2026	—	—	—	—
Total	0

___________________________________

(1) Represents shares of common stock purchased by the Barnwell Pension Plan, an affiliated purchaser, and the transactions were all made in the open market.

(2) The Company does not have a publicly announced plan or program to purchase shares of our common stock. Accordingly, there were no shares purchased as part of a publicly announced plan or program.

ITEM 3. DEFAULTS UPON SENIOR SECURITIES

None.

ITEM 4. MINE SAFETY DISCLOSURE

None.

ITEM 5. OTHER INFORMATION

During the three months ended March 31, 2026, no director or officer of the Company adopted or terminated a “Rule 10b5-1 trading arrangement” or “non-Rule 10b5-1 trading arrangement,” as each term is defined in Item 408 of Regulation S-K.

ITEM 6. EXHIBITS


Exhibit Number						Description

10.1						Sales Agreement by and between Barnwell Industries, Inc. and Roth Capital Partners, LLC, dated February 25, 2026, incorporated by reference to Exhibit 10.1 to the Company's Current Report on Form 8-K filed with the SEC on February 25, 2026

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)

__________________________________________________

* Filed herewith.

** Furnished herewith.

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 20, 2026	/s/ Philip F. Patman Jr.
		Philip F. Patman, Jr.
		Chief Financial Officer, and Treasurer
		(Principal Financial Officer and Principal Accounting Officer)

INDEX TO EXHIBITS


Exhibit Number						Description

10.1						Sales Agreement by and between Barnwell Industries, Inc. and Roth Capital Partners, LLC, dated February 25, 2026, incorporated by reference to Exhibit 10.1 to the Company's Current Report on Form 8-K filed with the SEC on February 25, 2026

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)

__________________________________________

* Filed herewith.

** Furnished herewith.

# Certain confidential information has been omitted from a portion of this exhibit.

Barnwell Industries Inc — Quarterly Report (Form 10-Q)

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