Cover
Cover - shares | 6 Months Ended | |
Mar. 31, 2021 | May 07, 2021 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2021 | |
Document Transition Report | false | |
Entity File Number | 1-5103 | |
Entity Registrant Name | BARNWELL INDUSTRIES, INC. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 72-0496921 | |
Entity Address, Address Line One | 1100 Alakea Street | |
Entity Address, Address Line Two | Suite 2900 | |
Entity Address, City or Town | Honolulu | |
Entity Address, State or Province | HI | |
Entity Address, Postal Zip Code | 96813 | |
City Area Code | 808 | |
Local Phone Number | 531-8400 | |
Title of 12(b) Security | Common Stock, $0.50 par value | |
Trading Symbol | BRN | |
Security Exchange Name | NYSEAMER | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 8,277,160 | |
Entity Central Index Key | 0000010048 | |
Current Fiscal Year End Date | --09-30 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands | Mar. 31, 2021 | Sep. 30, 2020 |
Current assets: | ||
Cash and cash equivalents | $ 4,387 | $ 4,584 |
Accounts and other receivables, net of allowance for doubtful accounts of: $368,000 at March 31, 2021; $341,000 at September 30, 2020 | 2,331 | 2,176 |
Income taxes receivable | 474 | 472 |
Asset held for sale | 699 | 699 |
Deferred offering costs | 483 | 0 |
Other current assets | 1,954 | 1,556 |
Total current assets | 10,328 | 9,487 |
Asset for retirement benefits | 915 | 771 |
Investments | 159 | 901 |
Operating lease right-of-use assets | 201 | 249 |
Other non-current asset | 250 | 0 |
Property and equipment | 77,373 | 73,431 |
Accumulated depletion, impairment, depreciation, and amortization | (74,457) | (69,657) |
Property and equipment, net | 2,916 | 3,774 |
Total assets | 14,769 | 15,182 |
Current liabilities: | ||
Accounts payable | 2,731 | 2,104 |
Accrued capital expenditures | 184 | 542 |
Accrued compensation | 547 | 408 |
Accrued operating and other expenses | 1,147 | 1,325 |
Current portion of operating lease liabilities | 103 | 111 |
Current portion of asset retirement obligation | 869 | 647 |
Other current liabilities | 563 | 1,227 |
Total current liabilities | 6,144 | 6,364 |
Long-term debt | 64 | 58 |
Operating lease liabilities | 101 | 143 |
Liability for retirement benefits | 4,887 | 4,829 |
Asset retirement obligation | 5,780 | 5,547 |
Deferred income tax liabilities | 208 | 194 |
Total liabilities | 17,184 | 17,135 |
Commitments and contingencies | ||
Equity: | ||
Common stock, par value $0.50 per share; authorized, 20,000,000 shares: 8,445,060 issued at March 31, 2021 and September 30, 2020 | 4,223 | 4,223 |
Additional paid-in capital | 1,501 | 1,350 |
Accumulated deficit | (4,169) | (3,897) |
Accumulated other comprehensive loss, net | (1,688) | (1,435) |
Treasury stock, at cost: 167,900 shares at March 31, 2021 and September 30, 2020 | (2,286) | (2,286) |
Total stockholders’ deficit | (2,419) | (2,045) |
Non-controlling interests | 4 | 92 |
Total deficit | (2,415) | (1,953) |
Total liabilities and equity | $ 14,769 | $ 15,182 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) (Unaudited) - USD ($) $ in Thousands | Mar. 31, 2021 | Sep. 30, 2020 |
Statement of Financial Position [Abstract] | ||
Accounts receivable, allowance for credit loss, current | $ 368 | $ 341 |
Common stock, par value (in dollars per share) | $ 0.50 | $ 0.50 |
Common stock, authorized shares (in shares) | 20,000,000 | 20,000,000 |
Common stock, issued shares (in shares) | 8,445,060 | 8,445,060 |
Treasury stock, shares (in shares) | 167,900 | 167,900 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2021 | Mar. 31, 2020 | |
Revenues: | ||||
Revenues | $ 3,998,000 | $ 4,582,000 | $ 8,385,000 | $ 9,432,000 |
Costs and expenses: | ||||
General and administrative | 1,928,000 | 2,031,000 | 3,113,000 | 3,527,000 |
Depletion, depreciation, and amortization | 227,000 | 687,000 | 503,000 | 1,392,000 |
Impairment of assets | 0 | 1,637,000 | 630,000 | 1,637,000 |
Interest expense | 3,000 | 0 | 4,000 | 0 |
Gain on sale of asset | 0 | (1,336,000) | 0 | (1,336,000) |
Total costs and expenses | 5,382,000 | 6,075,000 | 10,017,000 | 11,303,000 |
Loss before equity in income (loss) of affiliates and income taxes | (1,384,000) | (1,493,000) | (1,632,000) | (1,871,000) |
Equity in income (loss) of affiliates | 624,000 | (25,000) | 1,678,000 | (68,000) |
(Loss) earnings before income taxes | (760,000) | (1,518,000) | 46,000 | (1,939,000) |
Income tax provision (benefit) | 34,000 | 0 | 97,000 | (2,000) |
Net loss | (794,000) | (1,518,000) | (51,000) | (1,937,000) |
Less: Net earnings (loss) attributable to non-controlling interests | 62,000 | (4,000) | 221,000 | (9,000) |
Net loss attributable to Barnwell Industries, Inc. | $ (856,000) | $ (1,514,000) | $ (272,000) | $ (1,928,000) |
Basic and diluted net loss per common share attributable to Barnwell Industries, Inc. stockholders (in dollars per share) | $ (0.10) | $ (0.18) | $ (0.03) | $ (0.23) |
Weighted-average number of common shares outstanding: | ||||
Basic and diluted (in shares) | 8,277,160 | 8,277,160 | 8,277,160 | 8,277,160 |
Oil and natural gas | ||||
Revenues: | ||||
Revenues | $ 2,552,000 | $ 1,910,000 | $ 4,439,000 | $ 4,051,000 |
Costs and expenses: | ||||
Costs and expenses | 1,759,000 | 1,285,000 | 3,194,000 | 2,498,000 |
Depletion, depreciation, and amortization | 146,000 | 584,000 | 341,000 | 1,190,000 |
Impairment of assets | 0 | 1,637,000 | 630,000 | 1,637,000 |
Contract drilling | ||||
Revenues: | ||||
Revenues | 1,389,000 | 2,593,000 | 3,331,000 | 5,239,000 |
Costs and expenses: | ||||
Costs and expenses | 1,465,000 | 1,771,000 | 2,573,000 | 3,585,000 |
Depletion, depreciation, and amortization | 77,000 | 91,000 | 153,000 | 176,000 |
Land investment | ||||
Revenues: | ||||
Revenues | 0 | 0 | 485,000 | 0 |
Gas processing and other | ||||
Revenues: | ||||
Revenues | 57,000 | 79,000 | 130,000 | 142,000 |
Costs and expenses: | ||||
Depletion, depreciation, and amortization | $ 4,000 | $ 12,000 | $ 9,000 | $ 26,000 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2021 | Mar. 31, 2020 | |
Statement of Comprehensive Income [Abstract] | ||||
Net loss | $ (794) | $ (1,518) | $ (51) | $ (1,937) |
Other comprehensive (loss) income: | ||||
Foreign currency translation adjustments, net of taxes of $0 | (85) | 84 | (319) | 89 |
Retirement plans: | ||||
Amortization of accumulated other comprehensive loss into net periodic benefit cost, net of taxes of $0 | 33 | 20 | 66 | 80 |
Net actuarial gains arising during the period, net of taxes of $0 | 0 | 0 | 0 | 880 |
Curtailment gain, net of taxes of $0 | 0 | 0 | 0 | 1,699 |
Total other comprehensive (loss) income | (52) | 104 | (253) | 2,748 |
Total comprehensive (loss) income | (846) | (1,414) | (304) | 811 |
Less: Comprehensive (income) loss attributable to non-controlling interests | (62) | 4 | (221) | 9 |
Comprehensive (loss) income attributable to Barnwell Industries, Inc. | $ (908) | $ (1,410) | $ (525) | $ 820 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME (Parenthetical) (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2021 | Mar. 31, 2020 | |
Statement of Comprehensive Income [Abstract] | ||||
Foreign currency translation adjustments, taxes | $ 0 | $ 0 | $ 0 | $ 0 |
Amortization of accumulated other comprehensive loss into net periodic benefit cost, taxes | 0 | 0 | 0 | 0 |
Net actuarial gains arising during the period, taxes | 0 | 0 | 0 | 0 |
Curtailment gain, taxes | $ 0 | $ 0 | $ 0 | $ 0 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF EQUITY (DEFICIT) (Unaudited) - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-In Capital | Retained Earnings (Accumulated Deficit) | Accumulated Other Comprehensive Loss | Treasury Stock | Non-controlling Interests |
Balance, beginning of period (in shares) at Sep. 30, 2019 | 8,277,160 | ||||||
Balance, beginning of period at Sep. 30, 2019 | $ 1,329 | $ 4,223 | $ 1,350 | $ 859 | $ (2,917) | $ (2,286) | $ 100 |
Increase (Decrease) in Stockholders' Equity (Deficit) | |||||||
Net (loss) earnings | (1,937) | (1,928) | (9) | ||||
Foreign currency translation adjustments, net of taxes of $0 | 89 | 89 | |||||
Retirement plans: | |||||||
Amortization of accumulated other comprehensive loss into net periodic benefit cost, net of taxes of $0 | 80 | 80 | |||||
Net actuarial gains arising during the period, net of taxes of $0 | 880 | 880 | |||||
Curtailment gain, net of taxes of $0 | 1,699 | 1,699 | |||||
Balance, end of period (in shares) at Mar. 31, 2020 | 8,277,160 | ||||||
Balance, end of period at Mar. 31, 2020 | 2,140 | $ 4,223 | 1,350 | (1,069) | (169) | (2,286) | 91 |
Balance, beginning of period (in shares) at Sep. 30, 2020 | 8,277,160 | ||||||
Balance, beginning of period at Sep. 30, 2020 | (1,953) | $ 4,223 | 1,350 | (3,897) | (1,435) | (2,286) | 92 |
Increase (Decrease) in Stockholders' Equity (Deficit) | |||||||
Net (loss) earnings | (51) | (272) | 221 | ||||
Foreign currency translation adjustments, net of taxes of $0 | (319) | (319) | |||||
Distributions to non-controlling interests | (309) | (309) | |||||
Share-based compensation | 151 | 151 | |||||
Retirement plans: | |||||||
Amortization of accumulated other comprehensive loss into net periodic benefit cost, net of taxes of $0 | 66 | 66 | |||||
Net actuarial gains arising during the period, net of taxes of $0 | 0 | ||||||
Curtailment gain, net of taxes of $0 | 0 | ||||||
Balance, end of period (in shares) at Mar. 31, 2021 | 8,277,160 | ||||||
Balance, end of period at Mar. 31, 2021 | $ (2,415) | $ 4,223 | $ 1,501 | $ (4,169) | $ (1,688) | $ (2,286) | $ 4 |
CONDENSED CONSOLIDATED STATEM_5
CONDENSED CONSOLIDATED STATEMENTS OF EQUITY (DEFICIT) (Parenthetical) (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2021 | Mar. 31, 2020 | |
Statement of Stockholders' Equity [Abstract] | ||||
Foreign currency translation adjustments, taxes | $ 0 | $ 0 | $ 0 | $ 0 |
Amortization of accumulated other comprehensive loss into net periodic benefit cost, taxes | 0 | 0 | 0 | 0 |
Net actuarial gains arising during the period, taxes | 0 | 0 | 0 | 0 |
Curtailment gain, taxes | $ 0 | $ 0 | $ 0 | $ 0 |
CONDENSED CONSOLIDATED STATEM_6
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) | 6 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Cash flows from operating activities: | ||
Net loss | $ (51,000) | $ (1,937,000) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Equity in (income) loss of affiliates | (1,678,000) | 68,000 |
Depletion, depreciation, and amortization | 503,000 | 1,392,000 |
Gain on sale of asset | 0 | (1,336,000) |
Impairment of assets | 630,000 | 1,637,000 |
Sale of interest in leasehold land, net of fees paid | (426,000) | 0 |
Distributions of income from equity investees | 1,607,000 | 0 |
Retirement benefits (income) expense | (17,000) | 26,000 |
Non-cash rent (income) expense | (2,000) | 50,000 |
Accretion of asset retirement obligation | 277,000 | 276,000 |
Deferred income tax expense (benefit) | 14,000 | (9,000) |
Asset retirement obligation payments | (179,000) | (420,000) |
Share-based compensation expense | 151,000 | 0 |
Retirement plan contributions and payments | (4,000) | (4,000) |
Bad debt expense | 7,000 | 150,000 |
Decrease from changes in current assets and liabilities | (1,170,000) | (145,000) |
Net cash used in operating activities | (338,000) | (252,000) |
Cash flows from investing activities: | ||
Proceeds from sale of interest in leasehold land, net of fees paid | 426,000 | 0 |
Distribution from equity investees in excess of earnings | 813,000 | 0 |
Proceeds from the sale of asset | 0 | 1,100,000 |
Proceeds from sale of oil and natural gas assets | 0 | 594,000 |
Capital expenditures - oil and natural gas | (552,000) | (2,448,000) |
Capital expenditures - all other | (24,000) | (203,000) |
Payment for other non-current asset | (250,000) | 0 |
Net cash provided by (used in) investing activities | 413,000 | (957,000) |
Cash flows from financing activities: | ||
Borrowings on long-term debt | 47,000 | 0 |
Distributions to non-controlling interests | (309,000) | 0 |
Payment of deferred offering costs | (23,000) | 0 |
Net cash used in financing activities | (285,000) | 0 |
Effect of exchange rate changes on cash and cash equivalents | 13,000 | (18,000) |
Net decrease in cash and cash equivalents | (197,000) | (1,227,000) |
Cash and cash equivalents at beginning of period | 4,584,000 | 4,613,000 |
Cash and cash equivalents at end of period | $ 4,387,000 | $ 3,386,000 |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 6 Months Ended |
Mar. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Principles of Consolidation The condensed consolidated financial statements include the accounts of Barnwell Industries, Inc. and all majority-owned subsidiaries (collectively referred to herein as “Barnwell,” “we,” “our,” “us,” or the “Company”), including a 77.6%-owned land investment general partnership (Kaupulehu Developments) 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 (“SEC”). Accordingly, certain information and footnote disclosures normally included in the annual financial statements prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) have been condensed or omitted pursuant to those rules and regulations, although the Company believes that the disclosures made are adequate to make the information not misleading. These condensed consolidated financial statements and notes should be read in conjunction with the consolidated financial statements and notes thereto included in Barnwell’s September 30, 2020 Annual Report on Form 10-K, as amended by our Form 10-K/A Amendment No. 1. The Condensed Consolidated Balance Sheet as of September 30, 2020 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, 2021, results of operations and comprehensive (loss) income for the three and six months ended March 31, 2021 and 2020, and equity (deficit) and cash flows for the six months ended March 31, 2021 and 2020, have been made. The results of operations for the period ended March 31, 2021 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, share-based payment arrangements, obligations for retirement plans, contract drilling estimated costs to complete, proved oil and natural gas reserves, and the carrying value of other assets, and such assumptions may impact the amount at which such items are recorded. Significant Accounting Policies Other than as set forth below, there have been no changes to Barnwell's significant accounting policies as described in the Notes to Consolidated Financial Statements included in Item 8 of the Company's most recently filed Annual Report on Form 10-K, as amended by our Form 10-K/A Amendment No. 1. Share-based Compensation Share-based compensation cost is measured at fair value. Barnwell utilizes a closed-form valuation model to determine the fair value of each option award. Expected volatilities are based on the historical volatility of Barnwell’s stock over a period consistent with that of the expected terms of the options. The expected terms of the options represent expectations of future employee exercise and are estimated based on factors such as vesting periods, contractual expiration dates, historical trends in Barnwell’s stock price, and historical exercise behavior. If the Company does not have sufficient historical data regarding employee exercise behavior, the “simplified method” as permitted by the SEC’s Staff Accounting Bulletin No. 110, Share-Based Payment is utilized to estimate the expected terms of the options. The risk-free rates for periods within the contractual life of the options are based on the yields of U.S. Treasury instruments with terms comparable to the estimated option terms. Expected dividends are based on current and historical dividend payments. The Company's policy is to recognize forfeitures as they occur. Deferred Offering Costs The Company will incur certain incremental costs directly associated with its at-the-market offering in which the Company can sell, from time to time, shares of its common stock (see Note 15). These costs typically include fees paid to underwriters, attorneys, accountants, and other third parties. The offering costs incurred by the Company are currently capitalized as current assets and are recorded as “deferred offering costs” on the Company’s Condensed Consolidated Balance Sheet. Upon the initial sale of the Company’s shares, the deferred offering costs will be recorded in stockholder’s equity as a reduction of additional paid-in capital generated as a result of the offering. If the sale of the Company’s shares are determined to be no longer probable, the deferred offering costs will be charged to expense. Recently Adopted Accounting Pronouncements In August 2018, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2018-13, “Fair Value Measurement: Disclosure Framework-Changes to the Disclosure Requirements for Fair Value Measurement,” which provides changes to certain fair value disclosure requirements. The Company adopted the provisions of this Accounting Standards Update (“ASU”) effective October 1, 2020. The adoption of this update did not have an impact on Barnwell's consolidated financial statements. In October 2018, the FASB issued ASU No. 2018-17, “Consolidation: Targeted Improvements to Related Party Guidance for Variable Interest Entities,” which modifies the guidance related to indirect interests held through related parties under common control for determining whether fees paid to decision makers and service providers are variable interest. The Company adopted the provisions of this ASU |
GOING CONCERN
GOING CONCERN | 6 Months Ended |
Mar. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
GOING CONCERN | 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. Our ability to sustain our business in the future will depend on sufficient oil and natural gas operating cash flows, which are highly sensitive to volatile oil and natural gas prices, sufficient contract drilling operating cash flows, which are subject to large changes in demand, and sufficient future land investment segment proceeds and distributions from the Kukio Resort Land Development Partnerships, the timing of which are both highly uncertain and not within Barnwell’s control. A sufficient level of such cash inflows are necessary to fund discretionary oil and natural gas capital expenditures, which must be economically successful to provide sufficient returns, as well as fund our non-discretionary outflows such as oil and natural gas asset retirement obligations and ongoing operating and general and administrative expenses. In addition, as discussed in the "Asset Retirement Obligation" section of "Liquidity and Capital Resources," a significant amount of funds will be required to be put on deposit with Canadian regulatory authorities to fund abandonments at the Company's oil and natural gas properties in the Manyberries area. The Company listed its corporate office on the 29th floor of a commercial office building in downtown Honolulu, Hawaii for sale to generate liquidity in order to help mitigate the substantial doubt about our ability to continue as a going concern. The corporate office is currently under a purchase and sales contract with a buyer with a tentative closing to occur prior to September 30, 2021. While the Company believes the likelihood of the sale occurring as per the terms of the contract is more likely than not, the Company’s ability to successfully consummate the sale cannot be assured. On March 16, 2021, the Company initiated an at-the-market offering program (“ATM”) pursuant to which the Company may offer and sell, from time to time, shares of its common stock under price and volume guidelines set by the Company's Board of Directors and the terms and conditions described in the Registration Statement. As of the filing date of this Quarterly Report, no shares have been sold under the ATM, and there is no assurance that a sufficient level of funds can be raised by the ATM. In April 2021, the Company re-initiated the marketing of its non-core oil and natural gas properties in the Spirit River, Wood River, Medicine River, Kaybob, Bonanza, Balsam and Thornbury areas for sale. These properties were previously marketed for sale in January 2020, before the COVID-19 lockdowns began, but the Company did not receive any suitable offers, in part due to the impact of COVID-19 on oil and gas markets. There is no assurance that the sale of these properties will occur. We have experienced a trend of losses and negative operating cash flows in three of the last four years. While potential sources of liquidity may come from the aforementioned initiatives, due to the continuing uncertainties regarding the impacts of the COVID-19 pandemic on our business and the sufficiency of our cash balances and future cash inflows as described above, there is substantial doubt about our ability to meet our estimated cash outflows or continue as a going concern for one year from the date of the filing of this report. These financial statements do not include any adjustments that might result from the outcome of these uncertainties. |
NET LOSS PER COMMON SHARE
NET LOSS PER COMMON SHARE | 6 Months Ended |
Mar. 31, 2021 | |
Earnings Per Share [Abstract] | |
LOSS PER COMMON SHARE | NET 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. Potentially dilutive shares are excluded from the computation of diluted loss per share if their effect is anti-dilutive. Options to purchase 665,000 and 60,000 shares of common stock were excluded from the computation of diluted shares for the three and six months ended March 31, 2021 and 2020, respectively, 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 tables: Three months ended March 31, 2021 Net Loss Shares Per-Share Basic net loss per share $ (856,000) 8,277,160 $ (0.10) Effect of dilutive securities - common stock options — — Diluted net loss per share $ (856,000) 8,277,160 $ (0.10) Six months ended March 31, 2021 Net Loss Shares Per-Share Basic net loss per share $ (272,000) 8,277,160 $ (0.03) Effect of dilutive securities - common stock options — — Diluted net loss per share $ (272,000) 8,277,160 $ (0.03) Three months ended March 31, 2020 Net Loss Shares Per-Share Basic net loss per share $ (1,514,000) 8,277,160 $ (0.18) Effect of dilutive securities - common stock options — — Diluted net loss per share $ (1,514,000) 8,277,160 $ (0.18) Six months ended March 31, 2020 Net Loss Shares Per-Share Basic net loss per share $ (1,928,000) 8,277,160 $ (0.23) Effect of dilutive securities - common stock options — — Diluted net loss per share $ (1,928,000) 8,277,160 $ (0.23) |
INVESTMENTS
INVESTMENTS | 6 Months Ended |
Mar. 31, 2021 | |
Investments, All Other Investments [Abstract] | |
INVESTMENTS | INVESTMENTS Investment in Kukio Resort Land Development Partnerships On November 27, 2013, Barnwell, through a wholly-owned subsidiary, entered into two limited liability limited partnerships, KD Kona 2013 LLLP 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. The partnerships derive income from the sale of residential parcels, of which 15 lots remain to be sold at Increment I as of March 31, 2021, as well as from commissions on real estate sales by the real estate sales office. Two ocean front parcels approximately two to three acres in size fronting the ocean were developed within Increment II by KD II, of which one was sold in fiscal 2017 and one was sold in fiscal 2016. 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. 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. 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. Additionally, Barnwell was entitled to a preferred return from KKM on any allocated equity in income of the Kukio Resort Land Development Partnerships in excess of its partnership sharing ratio for cumulative distributions to all of its partners in excess of $45,000,000 from those partnerships. Cumulative distributions from the Kukio Resort Land Development Partnerships have reached the $45,000,000 threshold and in the quarter ended December 31, 2020, the Kukio Resort Land Development Partnerships made distributions in excess of the threshold out of the proceeds from the sale of two lots in Increment I. Accordingly, Barnwell received a total of $459,000 in preferred return payments, which is reflected as an additional equity pickup in the "Equity in income (loss) of affiliates" line item on the accompanying Condensed Consolidated Statement of Operations for the six months ended March 31, 2021. The preferred return payments received in the quarter ended December 31, 2020, brought the cumulative preferred return total to $656,000, which is the total amount Barnwell was entitled to, and thus there is no more preferred return outstanding as of March 31, 2021. During the six months ended March 31, 2021, Barnwell received net cash distributions in the amount of $2,205,000 from the Kukio Resort Land Development Partnerships after distributing $215,000 to non-controlling interests. Of the $2,205,000 of net cash distributions received from the Kukio Resort Land Development Partnerships, $459,000 represented a payment of the preferred return from KKM, as discussed above. There were no distributions from the Kukio Resort Land Development Partnerships for the six months ended March 31, 2020. Barnwell’s share of the operating results of its equity affiliates was income of $624,000 and $1,678,000, which includes the $459,000 payment of the preferred return from KKM discussed above, for the three and six months ended March 31, 2021, respectively, compared to losses of $25,000 and $68,000 for the three and six months ended March 31, 2020, respectively. The equity in the underlying net assets of the Kukio Resort Land Development Partnerships exceeds the carrying value of the investment in affiliates by approximately $233,000 as of March 31, 2021, which is attributable to differences in the value of capitalized development costs and a note receivable. The basis difference will be recognized as the partnerships sell lots and recognize the associated costs and sell memberships for the Kuki`o Golf and Beach Club for which the receivable relates. The basis difference adjustments of $50,000 and $5,000 for the six months ended March 31, 2021 and 2020, respectively, increased equity in income of affiliates. Summarized financial information for the Kukio Resort Land Development Partnerships is as follows: Three months ended March 31, 2021 2020 Revenue $ 7,330,000 $ 1,224,000 Gross profit $ 3,646,000 $ 651,000 Net earnings (loss) $ 2,702,000 $ (135,000) Six months ended March 31, 2021 2020 Revenue $ 15,450,000 $ 2,990,000 Gross profit $ 7,644,000 $ 1,447,000 Net earnings (loss) $ 5,314,000 $ (303,000) As of March 31, 2021 and September 30, 2020, Barnwell's non-current investment in Kukio Resort Land Development Partnerships was $159,000 and $901,000, respectively. Sale of Interest in Leasehold Land Kaupulehu Developments has the right to receive payments from KD I and KD II resulting from the sale of lots and/or residential units within Increment I and Increment II by KD I and KD II (see Note 18). With respect to Increment I, Kaupulehu Developments is entitled to receive payments from KD I based on the following percentages of the gross receipts from KD I’s sales of single-family residential lots in Increment I: 10% of such aggregate gross proceeds greater than $100,000,000 up to $300,000,000; and 14% of such aggregate gross proceeds in excess of $300,000,000. The total amount of gross proceeds from single-family lots sales was $224,500,000 through March 31, 2021. Two single-family lots were sold during the six months ended March 31, 2021 and 15 single-family lots, of the 80 lots developed within Increment I, remained to be sold as of March 31, 2021. 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 also obligated to pay an amount equal to 0.72% and 0.2% 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, 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. The following table summarizes the Increment I revenues from KD I and the amount of fees directly related to such revenues: Three months ended Six months ended 2021 2020 2021 2020 Sale of interest in leasehold land: Revenues - sale of interest in leasehold land $ — $ — $ 485,000 $ — Fees - included in general and administrative expenses — — (59,000) — Sale of interest in leasehold land, net of fees paid $ — $ — $ 426,000 $ — There is no assurance with regards to the amounts of future payments from Increment I or Increment II to be received, or that the remaining acreage within Increment II will be developed. Investment in Leasehold Land Interest - Lot 4C |
OTHER NON-CURRENT ASSET
OTHER NON-CURRENT ASSET | 6 Months Ended |
Mar. 31, 2021 | |
Other Assets, Noncurrent [Abstract] | |
OTHER NON-CURRENT ASSET | OTHER NON-CURRENT ASSET In February 2021, Barnwell Industries, Inc. established a new wholly-owned subsidiary named BOK Drilling, LLC (“BOK”) for the purpose of indirectly investing in oil plays in Oklahoma. BOK and Gros Ventre Partners, LLC, an entity not affiliated with the Company, entered into the Limited Liability Agreement of Teton Barnwell Fund I, LLC (“Teton Barnwell”), an entity formed for the purpose of directly entering into such an oil play, and in connection therewith, on March 25, 2021, the Company, on behalf of BOK, contributed $250,000 to Teton Barnwell to fund its initial investments in the oil play. The Company has classified the $250,000 as an “Other non-current asset” at March 31, 2021 pending the |
ASSET HELD FOR SALE
ASSET HELD FOR SALE | 6 Months Ended |
Mar. 31, 2021 | |
Asset Held For Sale [Abstract] | |
ASSET HELD FOR SALE | ASSET HELD FOR SALE The Company's Honolulu corporate office is currently listed for sale. Accordingly, the Company has designated this property as an asset held for sale and the carrying value in the aggregate amount of $699,000 is included in “Asset held for sale” on the Company's Condensed Consolidated Balance Sheets at March 31, 2021 and September 30, 2020. In March 2021, the Company entered into a purchase and sales contract with a buyer for the sale of our corporate office with a tentative closing to occur prior to September 30, 2021. |
OIL AND NATURAL GAS PROPERTIES
OIL AND NATURAL GAS PROPERTIES | 6 Months Ended |
Mar. 31, 2021 | |
Oil and Natural Gas Properties [Abstract] | |
OIL AND NATURAL GAS PROPERTIES | OIL AND NATURAL GAS PROPERTIES Dispositions There were no oil and natural gas property dispositions during the six months ended March 31, 2021. In the quarter ended December 31, 2019, Barnwell entered into a purchase and sale agreement with an independent third party and sold its interests in properties located in the Progress area of Alberta, Canada. The sales price per the agreement was adjusted for customary purchase price adjustments to $594,000 in order to, among other things, reflect an economic effective date of October 1, 2019. 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. Acquisitions There were no significant amounts paid for oil and natural gas property acquisitions during the six months ended March 31, 2021, and 2020. 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. There was no ceiling test impairment during the three months ended March 31, 2021 and a $630,000 ceiling test impairment during the six months ended March 31, 2021. There was a ceiling test impairment of $1,637,000 during the three and six months ended March 31, 2020. Changes in the mandated 12-month historical rolling average first-day-of-the-month prices for oil, natural gas and natural gas liquids prices, 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 estimated market value of unproved properties, impact the determination of the maximum carrying value of oil and natural gas properties. |
RETIREMENT PLANS
RETIREMENT PLANS | 6 Months Ended |
Mar. 31, 2021 | |
Retirement Benefits [Abstract] | |
RETIREMENT PLANS | RETIREMENT PLANS Barnwell sponsors a noncontributory defined benefit pension plan (“Pension Plan”) covering substantially all of its U.S. employees. Additionally, Barnwell sponsors a Supplemental Executive Retirement Plan (“SERP”), a noncontributory supplemental retirement benefit plan which covers certain current and former employees of Barnwell for amounts exceeding the limits allowed under the Pension Plan, and a postretirement medical insurance benefits plan (“Postretirement Medical”) covering eligible U.S. employees. In December 2019, the Company’s Board of Directors approved a resolution to freeze all future benefit accruals for all participants under the Company’s Pension Plan and SERP effective December 31, 2019. Consequently, current participants in the Pension Plan and SERP no longer accrue new benefits under the plans and new employees of the Company are no longer eligible to enter the Pension Plan and SERP as participants after December 31, 2019. The freezing of the Pension Plan and SERP triggered a curtailment which required a remeasurement of the projected benefit obligations of the Pension Plan and SERP and resulted in an $880,000 actuarial gain in accumulated other comprehensive loss and a $1,699,000 reduction in unrecognized pension benefit costs that were previously included in accumulated other comprehensive loss, with a corresponding benefit in other comprehensive income which were recorded in the quarter ended December 31, 2019. In April 2021, the Company's Board of Directors initiated the termination of the Postretirement Medical plan and the Company provided all participants of the plan with a sixty-day notice of termination. The Postretirement Medical plan is an unfunded plan and the Company currently estimates that it will recognize a non-cash gain of approximately $2,000,000 upon the termination of the Postretirement Medical plan in the quarter ending June 30, 2021. The following tables detail the components of net periodic benefit (income) cost for Barnwell’s retirement plans: Pension Plan SERP Postretirement Medical Three months ended March 31, 2021 2020 2021 2020 2021 2020 Interest cost $ 64,000 $ 72,000 $ 13,000 $ 15,000 $ 18,000 $ 20,000 Expected return on plan assets (137,000) (172,000) — — — — Amortization of net actuarial loss 10,000 — — — 23,000 20,000 Net periodic benefit (income) cost $ (63,000) $ (100,000) $ 13,000 $ 15,000 $ 41,000 $ 40,000 Pension Plan SERP Postretirement Medical Six months ended March 31, 2021 2020 2021 2020 2021 2020 Service cost $ — $ 50,000 $ — $ 3,000 $ — $ — Interest cost 129,000 155,000 26,000 33,000 36,000 40,000 Expected return on plan assets (274,000) (335,000) — — — — Amortization of prior service cost (credit) — 1,000 — (1,000) — — Amortization of net actuarial loss 20,000 35,000 — 5,000 46,000 40,000 Curtailment cost (income) — 53,000 — (53,000) — — Net periodic benefit (income) cost $ (125,000) $ (41,000) $ 26,000 $ (13,000) $ 82,000 $ 80,000 The net periodic benefit (income) cost, including service cost, is included in “General and administrative” expenses in the Company's Condensed Consolidated Statements of Operations. |
INCOME TAXES
INCOME TAXES | 6 Months Ended |
Mar. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES The components of loss before income taxes, after adjusting the (loss) earnings for non-controlling interests, are as follows: Three months ended Six months ended 2021 2020 2021 2020 United States $ (931,000) $ 701,000 $ 491,000 $ 554,000 Canada 109,000 (2,215,000) (666,000) (2,484,000) $ (822,000) $ (1,514,000) $ (175,000) $ (1,930,000) The components of the income tax provision (benefit) are as follows: Three months ended Six months ended 2021 2020 2021 2020 Current $ 59,000 $ — $ 83,000 $ 7,000 Deferred (25,000) — 14,000 (9,000) $ 34,000 $ — $ 97,000 $ (2,000) Consolidated taxes do not bear a customary relationship to pretax results due primarily to the fact that the Company is taxed separately in Canada based on Canadian source operations and in the U.S. based on consolidated operations, and essentially all deferred tax assets, net of relevant offsetting deferred tax liabilities, are not estimated to have a future benefit as tax credits or deductions. Income from our non-controlling interest in the Kukio Resort Land Development Partnerships is treated as non-unitary for state of Hawaii unitary filing purposes, thus unitary Hawaii losses provide limited sheltering of such non-unitary income. On December 27, 2020, President Trump signed into law the Consolidated Appropriations Act (the “Act”), an omnibus spending bill to fund the federal government that also includes an array of COVID-related tax relief for individuals and businesses. The tax-related measures contained in the Act revise and expand provisions enacted earlier in the year by the Families First Coronavirus Response Act and the Coronavirus Aid, Relief, and Economic Security Act. The Act also extends a number of expiring tax provisions. Additionally, the Act provides for a 100% deduction for certain business meals incurred in calendar years 2021 and 2022. The Company determined that income tax effects related to the passage of the Act were not material to the financial statements for the three and six months ended March 31, 2021. |
REVENUE FROM CONTRACTS WITH CUS
REVENUE FROM CONTRACTS WITH CUSTOMERS | 6 Months Ended |
Mar. 31, 2021 | |
Revenue from Contract with Customer [Abstract] | |
REVENUE FROM CONTRACTS WITH CUSTOMERS | REVENUE FROM CONTRACTS WITH CUSTOMERS Disaggregation of Revenue The following tables provide information about disaggregated revenue by revenue streams, reportable segments, geographical region, and timing of revenue recognition for the three and six months ended March 31, 2021 and 2020. Three months ended March 31, 2021 Oil and natural gas Contract drilling Land investment Other Total Revenue streams: Oil $ 1,933,000 $ — $ — $ — $ 1,933,000 Natural gas 461,000 — — — 461,000 Natural gas liquids 158,000 — — — 158,000 Drilling and pump — 1,389,000 — — 1,389,000 Other — — — 57,000 57,000 Total revenues before interest income $ 2,552,000 $ 1,389,000 $ — $ 57,000 $ 3,998,000 Geographical regions: United States $ — $ 1,389,000 $ — $ 4,000 $ 1,393,000 Canada 2,552,000 — — 53,000 2,605,000 Total revenues before interest income $ 2,552,000 $ 1,389,000 $ — $ 57,000 $ 3,998,000 Timing of revenue recognition: Goods transferred at a point in time $ 2,552,000 $ — $ — $ 57,000 $ 2,609,000 Services transferred over time — 1,389,000 — — 1,389,000 Total revenues before interest income $ 2,552,000 $ 1,389,000 $ — $ 57,000 $ 3,998,000 Three months ended March 31, 2020 Oil and natural gas Contract drilling Land investment Other Total Revenue streams: Oil $ 1,478,000 $ — $ — $ — $ 1,478,000 Natural gas 307,000 — — — 307,000 Natural gas liquids 125,000 — — — 125,000 Drilling and pump — 2,593,000 — — 2,593,000 Other — — — 70,000 70,000 Total revenues before interest income $ 1,910,000 $ 2,593,000 $ — $ 70,000 $ 4,573,000 Geographical regions: United States $ — $ 2,593,000 $ — $ — $ 2,593,000 Canada 1,910,000 — — 70,000 1,980,000 Total revenues before interest income $ 1,910,000 $ 2,593,000 $ — $ 70,000 $ 4,573,000 Timing of revenue recognition: Goods transferred at a point in time $ 1,910,000 $ — $ — $ 70,000 $ 1,980,000 Services transferred over time — 2,593,000 — — 2,593,000 Total revenues before interest income $ 1,910,000 $ 2,593,000 $ — $ 70,000 $ 4,573,000 Six months ended March 31, 2021 Oil and natural gas Contract drilling Land investment Other Total Revenue streams: Oil $ 3,313,000 $ — $ — $ — $ 3,313,000 Natural gas 836,000 — — — 836,000 Natural gas liquids 290,000 — — — 290,000 Drilling and pump — 3,331,000 — — 3,331,000 Contingent residual payments — — 485,000 — 485,000 Other — — — 130,000 130,000 Total revenues before interest income $ 4,439,000 $ 3,331,000 $ 485,000 $ 130,000 $ 8,385,000 Geographical regions: United States $ — $ 3,331,000 $ 485,000 $ 4,000 $ 3,820,000 Canada 4,439,000 — — 126,000 4,565,000 Total revenues before interest income $ 4,439,000 $ 3,331,000 $ 485,000 $ 130,000 $ 8,385,000 Timing of revenue recognition: Goods transferred at a point in time $ 4,439,000 $ — $ 485,000 $ 130,000 $ 5,054,000 Services transferred over time — 3,331,000 — — 3,331,000 Total revenues before interest income $ 4,439,000 $ 3,331,000 $ 485,000 $ 130,000 $ 8,385,000 Six months ended March 31, 2020 Oil and natural gas Contract drilling Land investment Other Total Revenue streams: Oil $ 3,203,000 $ — $ — $ — $ 3,203,000 Natural gas 629,000 — — — 629,000 Natural gas liquids 219,000 — — — 219,000 Drilling and pump — 5,239,000 — — 5,239,000 Other — — — 126,000 126,000 Total revenues before interest income $ 4,051,000 $ 5,239,000 $ — $ 126,000 $ 9,416,000 Geographical regions: United States $ — $ 5,239,000 $ — $ 7,000 $ 5,246,000 Canada 4,051,000 — — 119,000 4,170,000 Total revenues before interest income $ 4,051,000 $ 5,239,000 $ — $ 126,000 $ 9,416,000 Timing of revenue recognition: Goods transferred at a point in time $ 4,051,000 $ — $ — $ 126,000 $ 4,177,000 Services transferred over time — 5,239,000 — — 5,239,000 Total revenues before interest income $ 4,051,000 $ 5,239,000 $ — $ 126,000 $ 9,416,000 Contract Balances The following table provides information about accounts receivables, contract assets and contract liabilities from contracts with customers: March 31, 2021 September 30, 2020 Accounts receivables from contracts with customers $ 2,125,000 $ 1,772,000 Contract assets 486,000 413,000 Contract liabilities 391,000 1,097,000 Accounts receivables from contracts with customers are included in “Accounts and other receivables, net of allowance for doubtful accounts,” and contract assets, which includes costs and estimated earnings in excess of billings and retainage, are included in “Other current assets.” Contract liabilities, which includes billings in excess of costs and estimated earnings are included in “Other current liabilities” in the accompanying Condensed Consolidated Balance Sheets. Retainage, included in contract assets, represents amounts due from customers, but where payments are withheld contractually until certain construction milestones are met. Amounts retained typically range from 5% to 10% of the total invoice, up to contractually-specified maximums. The Company classifies as a current asset those retainages that are expected to be collected in the next twelve months. Contract assets represent the Company’s rights to consideration in exchange for services transferred to a customer that have not been billed as of the reporting date. The Company’s rights are generally unconditional at the time its performance obligations are satisfied. When the Company receives consideration, or such consideration is unconditionally due, from a customer prior to transferring goods or services to the customer under the terms of a sales contract, the Company records deferred revenue, which represents a contract liability. Such deferred revenue typically results from billings in excess of costs and estimated earnings on uncompleted contracts. As of March 31, 2021 and September 30, 2020, the Company had $391,000 and $1,097,000, respectively, included in “Other current liabilities” on the balance sheets for those performance obligations expected to be completed in the next twelve months. During the six months ended March 31, 2021 and 2020, the amount of revenue recognized that was previously included in contract liabilities as of the beginning of the respective period was $789,000 and $707,000, respectively. Contracts are sometimes modified for a change in scope or other requirements. The Company considers contract modifications to exist when the modification either creates new or changes the existing enforceable rights and obligations. Most of the Company’s contract modifications are for goods and services that are not distinct from the existing performance obligations. The effect of a contract modification on the transaction price, and the measure of progress for the performance obligation to which it relates, is recognized as an adjustment to revenue (either as an increase or decrease) on a cumulative catchup basis. Performance Obligations The Company’s remaining performance obligations for drilling and pump installation contracts (hereafter referred to as “backlog”) represent the unrecognized revenue value of the Company’s contract commitments. The Company’s backlog may vary significantly each reporting period based on the timing of major new contract commitments. In addition, our customers have the right, under some infrequent circumstances, to terminate contracts or defer the timing of the Company’s services and their payments to us. Nearly all of the Company's contract drilling segment contracts have original expected durations of one year or less. At March 31, 2021, the Company had three contract drilling jobs with original expected durations of greater than one year. For these contracts, approximately 7% of the remaining performance obligation of $2,609,000 is expected to be recognized in the next twelve months and the remaining, thereafter. Contract Fulfillment Costs Preconstruction costs, which include costs such as set-up and mobilization, are capitalized and allocated across all performance obligations and deferred and amortized over the contract term on a progress towards completion basis. As of March 31, 2021 and September 30, 2020, the Company had $105,000 and $145,000, respectively, in unamortized preconstruction costs related to contracts that were not completed. During the three and six months ended March 31, 2021 and 2020, the amortization of preconstruction costs related to contracts were not material and were included in the accompanying Condensed Consolidated Statements of Operations. Additionally, no impairment charges in connection with the Company’s preconstruction costs were recorded during the three and six months ended March 31, 2021 and 2020. Water Well Re-drill In the quarter ended December 31, 2019, the Company experienced the failure of a hole opener which broke apart leaving pieces in the bottom of a water well being drilled in Hawaii. Efforts to remove the items from the well were unsuccessful through the quarter ended March 31, 2020 and subsequently the Company determined that the well should be abandoned and a new well drilled at no incremental cost to the customer as per the terms of the contract. Accordingly, all the costs to drill and abandon the first well, which are all wasted costs, were excluded from the measurement of progress toward contract completion and all such costs were fully accrued in the quarter ended March 31, 2020, as this contract was determined to be a loss job. In September 2020, while making progress towards the drilling of a replacement well in different location, the drill string twisted off and became lodged in the well borehole, which required a stoppage of drilling and the need to dislodge and retrieve the broken drill string. Accordingly, the estimated total rework costs to remediate the situation was accrued at September 30, 2020. In January 2021, the broken drill string was retrieved from the well borehole and drilling of the replacement well recommenced. |
SEGMENT INFORMATION
SEGMENT INFORMATION | 6 Months Ended |
Mar. 31, 2021 | |
Segment Reporting [Abstract] | |
SEGMENT INFORMATION | SEGMENT INFORMATION Barnwell operates the following segments: 1) acquiring, developing, producing and selling oil and natural gas in Canada (oil and natural gas); 2) investing in land interests in Hawaii (land investment); and 3) drilling wells and installing and repairing water pumping systems in Hawaii (contract drilling). The following table presents certain financial information related to Barnwell’s reporting segments. All revenues reported are from external customers with no intersegment sales or transfers. Three months ended Six months ended 2021 2020 2021 2020 Revenues: Oil and natural gas $ 2,552,000 $ 1,910,000 $ 4,439,000 $ 4,051,000 Contract drilling 1,389,000 2,593,000 3,331,000 5,239,000 Land investment — — 485,000 — Other 57,000 70,000 130,000 126,000 Total before interest income 3,998,000 4,573,000 8,385,000 9,416,000 Interest income — 9,000 — 16,000 Total revenues $ 3,998,000 $ 4,582,000 $ 8,385,000 $ 9,432,000 Depletion, depreciation, and amortization: Oil and natural gas $ 146,000 $ 584,000 $ 341,000 $ 1,190,000 Contract drilling 77,000 91,000 153,000 176,000 Other 4,000 12,000 9,000 26,000 Total depletion, depreciation, and amortization $ 227,000 $ 687,000 $ 503,000 $ 1,392,000 Impairment: Oil and natural gas $ — $ 1,637,000 $ 630,000 $ 1,637,000 Total impairment $ — $ 1,637,000 $ 630,000 $ 1,637,000 Operating profit (loss) (before general and administrative expenses): Oil and natural gas $ 647,000 $ (1,596,000) $ 274,000 $ (1,274,000) Contract drilling (153,000) 731,000 605,000 1,478,000 Land investment — — 485,000 — Other 53,000 58,000 121,000 100,000 Gain on sale of asset — 1,336,000 — 1,336,000 Total operating profit 547,000 529,000 1,485,000 1,640,000 Equity in income (loss) of affiliates: Land investment 624,000 (25,000) 1,678,000 (68,000) General and administrative expenses (1,928,000) (2,031,000) (3,113,000) (3,527,000) Interest expense (3,000) — (4,000) — Interest income — 9,000 — 16,000 (Loss) earnings before income taxes $ (760,000) $ (1,518,000) $ 46,000 $ (1,939,000) |
ACCUMULATED OTHER COMPREHENSIVE
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | 6 Months Ended |
Mar. 31, 2021 | |
Equity [Abstract] | |
ACCUMULATED OTHER COMPREHENSIVE INCOME LOSS | ACCUMULATED OTHER COMPREHENSIVE LOSS The changes in each component of accumulated other comprehensive loss were as follows: Three months ended Six months ended 2021 2020 2021 2020 Foreign currency translation: Beginning accumulated foreign currency translation $ 311,000 $ 696,000 $ 545,000 $ 691,000 Change in cumulative translation adjustment before reclassifications (85,000) 84,000 (319,000) 89,000 Income taxes — — — — Net current period other comprehensive (loss) income (85,000) 84,000 (319,000) 89,000 Ending accumulated foreign currency translation 226,000 780,000 226,000 780,000 Retirement plans: Beginning accumulated retirement plans benefit cost (1,947,000) (969,000) (1,980,000) (3,608,000) Amortization of net actuarial loss and prior service cost 33,000 20,000 66,000 80,000 Net actuarial gains arising during the period — — — 2,579,000 Income taxes — — — — Net current period other comprehensive income 33,000 20,000 66,000 2,659,000 Ending accumulated retirement plans benefit cost (1,914,000) (949,000) (1,914,000) (949,000) Accumulated other comprehensive loss, net of taxes $ (1,688,000) $ (169,000) $ (1,688,000) $ (169,000) The amortization of net actuarial loss and prior service cost 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). |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 6 Months Ended |
Mar. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENTS | FAIR VALUE MEASUREMENTS The carrying values of cash and cash equivalents, accounts and other receivables, accounts payable and accrued current liabilities approximate their fair values due to the short-term nature of the instruments. Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis The estimated fair values of oil and natural gas properties and the asset retirement obligation incurred in the drilling of oil and natural gas wells or assumed in the acquisitions of additional oil and natural gas working interests are based on an estimated discounted cash flow model and market assumptions. The significant Level 3 assumptions used in the calculation of estimated discounted cash flows included future commodity prices, projections of estimated quantities of oil and natural gas reserves, expectations for timing and amount of future development, operating and asset retirement costs, projections of future rates of production, expected recovery rates and risk adjusted discount rates. Barnwell estimates the fair value of asset retirement obligations based on the projected discounted future cash outflows required to settle abandonment and restoration liabilities. Such an estimate requires |
DEBT
DEBT | 6 Months Ended |
Mar. 31, 2021 | |
Debt Disclosure [Abstract] | |
DEBT | DEBT Paycheck Protection Program Loan On April 28, 2020, the Company, as obligor, entered into a promissory note evidencing an unsecured loan in the approximate amount of $147,000 under the Paycheck Protection Program (“PPP”) pursuant to the Coronavirus Aid, Relief, and Economic Security Act (“CARES”) Act that was signed into law in March 2020. The note matures two years after the date of the loan disbursement and bears interest at a fixed annual rate of 1.00%, with the principal and interest payments deferred until ten months after the last day of the covered period. Under the terms of the CARES Act, as amended by the Paycheck Protection Program Flexibility Act of 2020, and the PPP, the Company can apply for and be granted forgiveness for all or a portion of the loan issued under the PPP and the loan is expected to be forgiven to the extent the proceeds are used in accordance with the PPP to cover payroll, mortgage interest, rent, and utility costs incurred by the Company over the 24-week period following the loan disbursement date. As of March 31, 2021, the current and long-term portions of the loan were $131,000 and $16,000, respectively, and the current portion is included in “Other current liabilities” in the Company's Condensed Consolidated Balance Sheet. On April 18, 2021, the Company was notified by the lender of our PPP loan that the entire PPP loan amount of $147,000 and related accrued interest was forgiven by the Small Business Administration. As a result of the loan forgiveness, the Company expects to recognize a gain on debt extinguishment in the Company's Condensed Consolidated Statement of Operations in the quarter ending June 30, 2021. Canada Emergency Business Account Loan In the quarter ended December 31, 2020, the Company’s Canadian subsidiary, Barnwell of Canada, received a loan of CAD$40,000 (in Canadian dollars) under the Canada Emergency Business Account (“CEBA”) loan program for small businesses. During the quarter ended March 31, 2021, the Company applied for an increase to our CEBA loan and received an additional CAD$20,000 for a total loan amount received of CAD$60,000 ($47,000) under the program. The CEBA loan is interest-free with no principal payments required until December 31, 2022, after which the remaining loan balance is converted to a three year term loan at 5% annual interest paid monthly. If the Company repays 66.6% of the principal amount prior to December 31, 2022, there will be loan forgiveness of 33.3% up to a maximum of CAD$20,000. |
STOCKHOLDERS' EQUITY (DEFICIT)
STOCKHOLDERS' EQUITY (DEFICIT) | 6 Months Ended |
Mar. 31, 2021 | |
Stockholders' Equity Note [Abstract] | |
STOCKHOLDERS' EQUITY (DEFICIT) | STOCKHOLDERS' EQUITY (DEFICIT) Share-based Compensation 2018 Equity Incentive Plan The Company’s stock option plans are administered by the Compensation Committee of the Board of Directors. The stockholder-approved 2018 Equity Incentive Plan provides for the issuance of incentive stock options, nonstatutory stock options, stock options with stock appreciation rights, restricted stock, restricted stock units and performance units, qualified performance-based awards, and stock grants to employees, consultants and non-employee members of the Board of Directors. 800,000 shares of Barnwell common stock have been reserved for issuance and as of March 31, 2021, a total of 135,000 share options remain available for grant. Barnwell currently has a policy of issuing new shares to satisfy share option exercises when the optionee requests shares. Equity-classified Awards On February 9, 2021, the Board of Directors of the Company granted options to purchase 665,000 shares of common stock, 310,000 shares to independent directors and 355,000 shares to employees. 605,000 shares of the stock options granted have an exercise price equal to the closing market price of Barnwell’s stock on the date of grant of $3.33, vest annually over three years, and expire in ten years from the date of grant. 60,000 shares of the stock options granted have an exercise price of $3.66 (110% of the closing market price on the date of grant for options granted to affiliates), vest annually over three years, and expire in five years from the date of grant. A summary of the activity in Barnwell’s equity-classified share options from October 1, 2020 through March 31, 2021 is presented below: Options Shares Weighted- Weighted- Aggregate Outstanding at October 1, 2020 — $ — Granted 665,000 3.36 Exercised — — Expired/Forfeited — — Outstanding at March 31, 2021 665,000 $ 3.36 9.4 $ — Exercisable at March 31, 2021 — $ — — $ — The following assumptions were used in estimating the fair value of the equity-classified share options granted on February 9, 2021: > 10% Owner-Employee Others Number of shares 60,000 605,000 Expected volatility 127.4% 105.8% Expected dividends None None Expected term (in years) 3.5 6.0 Risk-free interest rate 0.19% 0.82% Expected forfeitures None None Fair value per share $2.51 $2.70 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 Condensed Consolidated Statements of Operations. Compensation cost for equity-classified 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. As of March 31, 2021, the total remaining unrecognized compensation cost related to nonvested share options was $1,649,000, which is expected to be recognized over the weighted-average remaining requisite service period of 2.9 years. During the three and six months ended March 31, 2021, the Company recognized total share-based compensation expense of $151,000. There was no share-based compensation expense recognized during the three and six months ended March 31, 2020. At The Market Offering On March 16, 2021, the Company entered into a Sales Agreement (the “Sales Agreement”) with A.G.P./Alliance Global Partners (“A.G.P,”), with respect to the ATM pursuant to which the Company may offer and sell, from time to time, shares of its common stock, par value $0.50 per share having an aggregate sales price of up to $25 million (subject to certain limitations at any time our public float remains under $75 million), through or to A.G.P as the Company’s sales agent or as principal. Sales of our common stock under the ATM, if any, will be made by any methods deemed to be “at the market offerings” as defined in Rule 415(a)(4) under the Securities Act, including sales made directly on the NYSE American, on any other existing trading market for our Common Stock, or to or through a market maker. Shares of common stock sold under the ATM are offered pursuant to the Company’s Registration Statement on Form S-3 (File No. 333-254365), filed with the Securities and Exchange Commission on March 16, 2021, and declared effective on March 26, 2021 (the "Registration Statement”), and the prospectus dated March 26, 2021, included in the Registration Statement. |
CONTINGENCIES
CONTINGENCIES | 6 Months Ended |
Mar. 31, 2021 | |
Loss Contingency [Abstract] | |
CONTINGENCIES | CONTINGENCIES Legal and Regulatory Matters Barnwell is routinely involved in disputes with third parties that occasionally require litigation. In addition, Barnwell is required to maintain compliance with all current governmental controls and regulations in the ordinary course of business. Barnwell’s management is not aware of any claims or litigation involving Barnwell that are likely to have a material adverse effect on its results of operations, financial position or liquidity. In the year ended September 30, 2019, two of the water wells drilled by the contract drilling segment for one customer were determined to not meet the contract specifications for plumbness. Subsequently, in the quarter ended March 31, 2020, the Company executed a separate five-year warranty agreement with the customer for one of the wells that did not meet plumbness. Under the terms of the agreement, if the lack of plumbness is determined to be the cause of a pump failure within the warranty period, the Company would be obligated to replace the pump at no cost to the customer. If the Company is unable to replace the pump using industry-standard methods, or if there are two or more pump failures attributable to lack of plumbness within the five-year warranty period, the Company would be obligated to drill a new well at no cost to the customer. Negotiations with the customer are currently ongoing for the other well that the customer claims did not meet plumbness despite the fact that the independent consulting engineer for the job concluded that the most recent plumbness test, completed after the well was cased with casing cemented into place as per the contract, showed that the well meets the plumbness specifications of the contract. Management believes the degrees of deviation for both wells are not impactful to the performance of the submersible pumps that will be installed in those wells. Accordingly, no accruals have been recorded as of March 31, 2021 as there is no probable or estimable contingent liability. In July 2020, the Staff of the State of Hawaii’s Commission on Water Resource Management (“Commission”) circulated a draft of a proposed recommendation to the Commission under which the Company, the water utility, the water utility's independent hydrologist firm and the owner of the land on which the two aforementioned water wells were drilled would be assessed penalty fines because each of the wells were calculated to have been drilled beyond the depth permitted by the permit. The wells were drilled to a depth to penetrate certain layers of impermeable rock necessary to access the aquifer at the instructions and on the advice of the hydrologist hired by the owner of the well. The Company’s share of the proposed penalties and fines was originally calculated to approximately $1,200,000. Subsequently, the Staff of the Commission acknowledged that one well had not been drilled to a depth beyond its permitted depth and the fines on that well were eliminated. Additionally, the fines applicable to the depth of the second well were dropped in lieu of the parties entering into an agreement to perform a water quality study and turn a current well into a monitoring well. Accordingly, the Company recorded a contingent liability of approximately $300,000 at September 30, 2020 and there has been no change to the accrual as of March 31, 2021. |
INFORMATION RELATING TO THE CON
INFORMATION RELATING TO THE CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | 6 Months Ended |
Mar. 31, 2021 | |
Supplemental Cash Flow Elements [Abstract] | |
INFORMATION RELATING TO THE CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | INFORMATION RELATING TO THE CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS Six months ended 2021 2020 Supplemental disclosure of cash flow information: Cash paid (received) during the year for: Income taxes paid (refunded), net $ 85,000 $ (94,000) Capital expenditure accruals related to oil and natural gas exploration and development decreased $381,000 during the six months ended March 31, 2021 and increased $670,000 during the six months ended March 31, 2020. Additionally, capital expenditure accruals related to oil and natural gas asset retirement obligations decreased $12,000 during the six months ended March 31, 2021 and increased $527,000 during the six months ended March 31, 2020. |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 6 Months Ended |
Mar. 31, 2021 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | RELATED PARTY TRANSACTIONS Kaupulehu Developments is entitled to receive payments from the sales of lots and/or residential units by KD I and KD II. KD I and KD II are part of the Kukio Resort Land Development Partnerships in which Barnwell holds indirect 19.6% and 10.8% non-controlling ownership interests, respectively, accounted for under the equity method of investment. The percentage of sales payments are part of transactions which took place in 2004 and 2006 where Kaupulehu Developments sold its leasehold interests in Increment I and Increment II to KD I's and KD II's predecessors in interest, respectively, which was prior to Barnwell’s affiliation with KD I and KD II which commenced on November 27, 2013, the acquisition date of our ownership interest in the Kukio Resort Land Development Partnerships. Changes to the arrangement above, effective March 7, 2019, are discussed in Note 4. During the six months ended March 31, 2021, Barnwell received $485,000 in percentage of sales payments from KD 1 from the sale of two single-family lots within Phase II of Increment I. No lots were sold during the six months ended March 31, 2020. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 6 Months Ended |
Mar. 31, 2021 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | SUBSEQUENT EVENTS Kukio Resort Land Development Partnerships and Sale of Interest in Leasehold Land Subsequent to March 31, 2021, Barnwell received net cash distributions in the amount of $1,554,000 from the Kukio Resort Land Development Partnerships. Financial results of this distribution will be reflected in Barnwell's quarter ending June 30, 2021. Additionally, subsequent to March 31, 2021, Kaupulehu Developments received percentage of sales payments totaling $548,000 from the sale of three lots within Phase II of Increment I. Financial results from the receipt of these payments will be reflected in Barnwell's quarter ending June 30, 2021. Paycheck Protection Program Loan Forgiveness On April 18, 2021, the Company was notified by the lender of our PPP loan that the entire PPP loan amount of $147,000 and related accrued interest was forgiven by the Small Business Administration. As a result of the loan forgiveness, the Company expects to recognize a gain on debt extinguishment in the Company's Condensed Consolidated Statement of Operations in the quarter ending June 30, 2021. Postretirement Medical Plan Termination In April 2021, the Company's Board of Directors initiated the termination of the Postretirement Medical plan and the Company provided all participants of the plan with a sixty-day notice of termination. The Postretirement Medical plan is an unfunded plan and the Company currently estimates that it will recognize a non-cash gain of approximately $2,000,000 upon the termination of the Postretirement Medical plan in the quarter ending June 30, 2021. Oil and Natural Gas Property Dispositions and Acquisitions On April 8, 2021, Barnwell entered into a purchase and sale agreement with an independent third party and sold its interests in properties located in the Hillsdown area of Alberta, Canada. The sales price per the agreement was adjusted for customary purchase price adjustments to $138,000 in order to, among other things, reflect an economic effective date of October 1, 2020. $70,000 of the sales proceeds was withheld for remittance by the buyers to the Canada Revenue Agency for potential amounts due for Barnwell’s Canadian income taxes related to the sale. 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. Additionally, on April 8, 2021, Barnwell acquired additional working interests in oil and natural gas properties located in the North Twining area of Alberta, Canada for cash consideration of $340,000. The purchase price per the agreement was adjusted for customary purchase price adjustments to reflect the economic activity from the effective date to the closing date. 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. |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 6 Months Ended |
Mar. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Principles of Consolidation | Principles of Consolidation The condensed consolidated financial statements include the accounts of Barnwell Industries, Inc. and all majority-owned subsidiaries (collectively referred to herein as “Barnwell,” “we,” “our,” “us,” or the “Company”), including a 77.6%-owned land investment general partnership (Kaupulehu Developments) 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 | 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 (“SEC”). Accordingly, certain information and footnote disclosures normally included in the annual financial statements prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) have been condensed or omitted pursuant to those rules and regulations, although the Company believes that the disclosures made are adequate to make the information not misleading. These condensed consolidated financial statements and notes should be read in conjunction with the consolidated financial statements and notes thereto included in Barnwell’s September 30, 2020 Annual Report on Form 10-K, as amended by our Form 10-K/A Amendment No. 1. The Condensed Consolidated Balance Sheet as of September 30, 2020 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, 2021, results of operations and comprehensive (loss) income for the three and six months ended March 31, 2021 and 2020, and equity (deficit) and cash flows for the six months ended March 31, 2021 and 2020, have been made. The results of operations for the period ended March 31, 2021 are not necessarily indicative of the operating results for the full year. |
Use of Estimates in the Preparation of Condensed Consolidated Financial Statements | Use of Estimates in the Preparation of Condensed Consolidated Financial Statements The preparation of the condensed consolidated financial statements in conformity with U.S. GAAP requires management of Barnwell to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses and the disclosure of contingent assets and liabilities. Actual results could differ significantly from those estimates. Significant assumptions are required in the |
Share-based Compensation | Share-based Compensation Share-based compensation cost is measured at fair value. Barnwell utilizes a closed-form valuation model to determine the fair value of each option award. Expected volatilities are based on the historical volatility of Barnwell’s stock over a period consistent with that of the expected terms of the options. The expected terms of the options represent expectations of future employee exercise and are estimated based on factors such as vesting periods, contractual expiration dates, historical trends in Barnwell’s stock price, and historical exercise behavior. If the Company does not have sufficient historical data regarding employee exercise behavior, the “simplified method” as permitted by the SEC’s Staff Accounting Bulletin No. 110, Share-Based Payment is utilized to estimate the expected terms of the options. The risk-free rates for periods within the contractual life of the options are based on the yields of U.S. Treasury instruments with terms comparable to the estimated option terms. Expected dividends are based on current and historical dividend payments. The Company's policy is to recognize forfeitures as they occur. |
Deferred Offering Costs | Deferred Offering Costs The Company will incur certain incremental costs directly associated with its at-the-market offering in which the Company can sell, from time to time, shares of its common stock (see Note 15). These costs typically include fees paid to underwriters, attorneys, accountants, and other third parties. The offering costs incurred by the Company are currently capitalized as current assets and are recorded as “deferred offering costs” on the Company’s Condensed Consolidated Balance Sheet. Upon the initial sale of the Company’s shares, the deferred offering costs will be recorded in stockholder’s equity as a reduction of additional paid-in capital generated as a result of the offering. If the sale of the Company’s shares are determined to be no longer probable, the deferred offering costs will be charged to expense. |
Recently Adopted Accounting Pronouncements | Recently Adopted Accounting Pronouncements In August 2018, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2018-13, “Fair Value Measurement: Disclosure Framework-Changes to the Disclosure Requirements for Fair Value Measurement,” which provides changes to certain fair value disclosure requirements. The Company adopted the provisions of this Accounting Standards Update (“ASU”) effective October 1, 2020. The adoption of this update did not have an impact on Barnwell's consolidated financial statements. In October 2018, the FASB issued ASU No. 2018-17, “Consolidation: Targeted Improvements to Related Party Guidance for Variable Interest Entities,” which modifies the guidance related to indirect interests held through related parties under common control for determining whether fees paid to decision makers and service providers are variable interest. The Company adopted the provisions of this ASU |
NET LOSS PER COMMON SHARE (Tabl
NET LOSS PER COMMON SHARE (Tables) | 6 Months Ended |
Mar. 31, 2021 | |
Earnings Per Share [Abstract] | |
Reconciliations between net earnings (loss) attributable to the entity's stockholders and common shares outstanding of the basic and diluted net earnings (loss) per share computations | Reconciliations between net loss attributable to Barnwell stockholders and common shares outstanding of the basic and diluted net loss per share computations are detailed in the following tables: Three months ended March 31, 2021 Net Loss Shares Per-Share Basic net loss per share $ (856,000) 8,277,160 $ (0.10) Effect of dilutive securities - common stock options — — Diluted net loss per share $ (856,000) 8,277,160 $ (0.10) Six months ended March 31, 2021 Net Loss Shares Per-Share Basic net loss per share $ (272,000) 8,277,160 $ (0.03) Effect of dilutive securities - common stock options — — Diluted net loss per share $ (272,000) 8,277,160 $ (0.03) Three months ended March 31, 2020 Net Loss Shares Per-Share Basic net loss per share $ (1,514,000) 8,277,160 $ (0.18) Effect of dilutive securities - common stock options — — Diluted net loss per share $ (1,514,000) 8,277,160 $ (0.18) Six months ended March 31, 2020 Net Loss Shares Per-Share Basic net loss per share $ (1,928,000) 8,277,160 $ (0.23) Effect of dilutive securities - common stock options — — Diluted net loss per share $ (1,928,000) 8,277,160 $ (0.23) |
INVESTMENTS (Tables)
INVESTMENTS (Tables) | 6 Months Ended |
Mar. 31, 2021 | |
Investments, All Other Investments [Abstract] | |
Summarized financial information for the land development partnerships | Summarized financial information for the Kukio Resort Land Development Partnerships is as follows: Three months ended March 31, 2021 2020 Revenue $ 7,330,000 $ 1,224,000 Gross profit $ 3,646,000 $ 651,000 Net earnings (loss) $ 2,702,000 $ (135,000) Six months ended March 31, 2021 2020 Revenue $ 15,450,000 $ 2,990,000 Gross profit $ 7,644,000 $ 1,447,000 Net earnings (loss) $ 5,314,000 $ (303,000) |
Summary of increment I and increment II percentage of sales payment revenues received | The following table summarizes the Increment I revenues from KD I and the amount of fees directly related to such revenues: Three months ended Six months ended 2021 2020 2021 2020 Sale of interest in leasehold land: Revenues - sale of interest in leasehold land $ — $ — $ 485,000 $ — Fees - included in general and administrative expenses — — (59,000) — Sale of interest in leasehold land, net of fees paid $ — $ — $ 426,000 $ — |
RETIREMENT PLANS (Tables)
RETIREMENT PLANS (Tables) | 6 Months Ended |
Mar. 31, 2021 | |
Retirement Benefits [Abstract] | |
Schedule of components of net periodic benefit cost (income) | The following tables detail the components of net periodic benefit (income) cost for Barnwell’s retirement plans: Pension Plan SERP Postretirement Medical Three months ended March 31, 2021 2020 2021 2020 2021 2020 Interest cost $ 64,000 $ 72,000 $ 13,000 $ 15,000 $ 18,000 $ 20,000 Expected return on plan assets (137,000) (172,000) — — — — Amortization of net actuarial loss 10,000 — — — 23,000 20,000 Net periodic benefit (income) cost $ (63,000) $ (100,000) $ 13,000 $ 15,000 $ 41,000 $ 40,000 Pension Plan SERP Postretirement Medical Six months ended March 31, 2021 2020 2021 2020 2021 2020 Service cost $ — $ 50,000 $ — $ 3,000 $ — $ — Interest cost 129,000 155,000 26,000 33,000 36,000 40,000 Expected return on plan assets (274,000) (335,000) — — — — Amortization of prior service cost (credit) — 1,000 — (1,000) — — Amortization of net actuarial loss 20,000 35,000 — 5,000 46,000 40,000 Curtailment cost (income) — 53,000 — (53,000) — — Net periodic benefit (income) cost $ (125,000) $ (41,000) $ 26,000 $ (13,000) $ 82,000 $ 80,000 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 6 Months Ended |
Mar. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Components of income (loss) before income taxes, after adjusting the income (loss) for non-controlling interests | The components of loss before income taxes, after adjusting the (loss) earnings for non-controlling interests, are as follows: Three months ended Six months ended 2021 2020 2021 2020 United States $ (931,000) $ 701,000 $ 491,000 $ 554,000 Canada 109,000 (2,215,000) (666,000) (2,484,000) $ (822,000) $ (1,514,000) $ (175,000) $ (1,930,000) |
Schedule of components of the income tax (benefit) provision | The components of the income tax provision (benefit) are as follows: Three months ended Six months ended 2021 2020 2021 2020 Current $ 59,000 $ — $ 83,000 $ 7,000 Deferred (25,000) — 14,000 (9,000) $ 34,000 $ — $ 97,000 $ (2,000) |
REVENUE FROM CONTRACT WITH CUST
REVENUE FROM CONTRACT WITH CUSTOMERS (Tables) | 6 Months Ended |
Mar. 31, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Summary of disaggregation of revenue | The following tables provide information about disaggregated revenue by revenue streams, reportable segments, geographical region, and timing of revenue recognition for the three and six months ended March 31, 2021 and 2020. Three months ended March 31, 2021 Oil and natural gas Contract drilling Land investment Other Total Revenue streams: Oil $ 1,933,000 $ — $ — $ — $ 1,933,000 Natural gas 461,000 — — — 461,000 Natural gas liquids 158,000 — — — 158,000 Drilling and pump — 1,389,000 — — 1,389,000 Other — — — 57,000 57,000 Total revenues before interest income $ 2,552,000 $ 1,389,000 $ — $ 57,000 $ 3,998,000 Geographical regions: United States $ — $ 1,389,000 $ — $ 4,000 $ 1,393,000 Canada 2,552,000 — — 53,000 2,605,000 Total revenues before interest income $ 2,552,000 $ 1,389,000 $ — $ 57,000 $ 3,998,000 Timing of revenue recognition: Goods transferred at a point in time $ 2,552,000 $ — $ — $ 57,000 $ 2,609,000 Services transferred over time — 1,389,000 — — 1,389,000 Total revenues before interest income $ 2,552,000 $ 1,389,000 $ — $ 57,000 $ 3,998,000 Three months ended March 31, 2020 Oil and natural gas Contract drilling Land investment Other Total Revenue streams: Oil $ 1,478,000 $ — $ — $ — $ 1,478,000 Natural gas 307,000 — — — 307,000 Natural gas liquids 125,000 — — — 125,000 Drilling and pump — 2,593,000 — — 2,593,000 Other — — — 70,000 70,000 Total revenues before interest income $ 1,910,000 $ 2,593,000 $ — $ 70,000 $ 4,573,000 Geographical regions: United States $ — $ 2,593,000 $ — $ — $ 2,593,000 Canada 1,910,000 — — 70,000 1,980,000 Total revenues before interest income $ 1,910,000 $ 2,593,000 $ — $ 70,000 $ 4,573,000 Timing of revenue recognition: Goods transferred at a point in time $ 1,910,000 $ — $ — $ 70,000 $ 1,980,000 Services transferred over time — 2,593,000 — — 2,593,000 Total revenues before interest income $ 1,910,000 $ 2,593,000 $ — $ 70,000 $ 4,573,000 Six months ended March 31, 2021 Oil and natural gas Contract drilling Land investment Other Total Revenue streams: Oil $ 3,313,000 $ — $ — $ — $ 3,313,000 Natural gas 836,000 — — — 836,000 Natural gas liquids 290,000 — — — 290,000 Drilling and pump — 3,331,000 — — 3,331,000 Contingent residual payments — — 485,000 — 485,000 Other — — — 130,000 130,000 Total revenues before interest income $ 4,439,000 $ 3,331,000 $ 485,000 $ 130,000 $ 8,385,000 Geographical regions: United States $ — $ 3,331,000 $ 485,000 $ 4,000 $ 3,820,000 Canada 4,439,000 — — 126,000 4,565,000 Total revenues before interest income $ 4,439,000 $ 3,331,000 $ 485,000 $ 130,000 $ 8,385,000 Timing of revenue recognition: Goods transferred at a point in time $ 4,439,000 $ — $ 485,000 $ 130,000 $ 5,054,000 Services transferred over time — 3,331,000 — — 3,331,000 Total revenues before interest income $ 4,439,000 $ 3,331,000 $ 485,000 $ 130,000 $ 8,385,000 Six months ended March 31, 2020 Oil and natural gas Contract drilling Land investment Other Total Revenue streams: Oil $ 3,203,000 $ — $ — $ — $ 3,203,000 Natural gas 629,000 — — — 629,000 Natural gas liquids 219,000 — — — 219,000 Drilling and pump — 5,239,000 — — 5,239,000 Other — — — 126,000 126,000 Total revenues before interest income $ 4,051,000 $ 5,239,000 $ — $ 126,000 $ 9,416,000 Geographical regions: United States $ — $ 5,239,000 $ — $ 7,000 $ 5,246,000 Canada 4,051,000 — — 119,000 4,170,000 Total revenues before interest income $ 4,051,000 $ 5,239,000 $ — $ 126,000 $ 9,416,000 Timing of revenue recognition: Goods transferred at a point in time $ 4,051,000 $ — $ — $ 126,000 $ 4,177,000 Services transferred over time — 5,239,000 — — 5,239,000 Total revenues before interest income $ 4,051,000 $ 5,239,000 $ — $ 126,000 $ 9,416,000 |
Summary of contract with customer, asset and liability | The following table provides information about accounts receivables, contract assets and contract liabilities from contracts with customers: March 31, 2021 September 30, 2020 Accounts receivables from contracts with customers $ 2,125,000 $ 1,772,000 Contract assets 486,000 413,000 Contract liabilities 391,000 1,097,000 |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 6 Months Ended |
Mar. 31, 2021 | |
Segment Reporting [Abstract] | |
Schedule of financial information related to reporting segments | The following table presents certain financial information related to Barnwell’s reporting segments. All revenues reported are from external customers with no intersegment sales or transfers. Three months ended Six months ended 2021 2020 2021 2020 Revenues: Oil and natural gas $ 2,552,000 $ 1,910,000 $ 4,439,000 $ 4,051,000 Contract drilling 1,389,000 2,593,000 3,331,000 5,239,000 Land investment — — 485,000 — Other 57,000 70,000 130,000 126,000 Total before interest income 3,998,000 4,573,000 8,385,000 9,416,000 Interest income — 9,000 — 16,000 Total revenues $ 3,998,000 $ 4,582,000 $ 8,385,000 $ 9,432,000 Depletion, depreciation, and amortization: Oil and natural gas $ 146,000 $ 584,000 $ 341,000 $ 1,190,000 Contract drilling 77,000 91,000 153,000 176,000 Other 4,000 12,000 9,000 26,000 Total depletion, depreciation, and amortization $ 227,000 $ 687,000 $ 503,000 $ 1,392,000 Impairment: Oil and natural gas $ — $ 1,637,000 $ 630,000 $ 1,637,000 Total impairment $ — $ 1,637,000 $ 630,000 $ 1,637,000 Operating profit (loss) (before general and administrative expenses): Oil and natural gas $ 647,000 $ (1,596,000) $ 274,000 $ (1,274,000) Contract drilling (153,000) 731,000 605,000 1,478,000 Land investment — — 485,000 — Other 53,000 58,000 121,000 100,000 Gain on sale of asset — 1,336,000 — 1,336,000 Total operating profit 547,000 529,000 1,485,000 1,640,000 Equity in income (loss) of affiliates: Land investment 624,000 (25,000) 1,678,000 (68,000) General and administrative expenses (1,928,000) (2,031,000) (3,113,000) (3,527,000) Interest expense (3,000) — (4,000) — Interest income — 9,000 — 16,000 (Loss) earnings before income taxes $ (760,000) $ (1,518,000) $ 46,000 $ (1,939,000) |
ACCUMULATED OTHER COMPREHENSI_2
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Tables) | 6 Months Ended |
Mar. 31, 2021 | |
Equity [Abstract] | |
Schedule of changes in each component of accumulated other comprehensive income (loss) | The changes in each component of accumulated other comprehensive loss were as follows: Three months ended Six months ended 2021 2020 2021 2020 Foreign currency translation: Beginning accumulated foreign currency translation $ 311,000 $ 696,000 $ 545,000 $ 691,000 Change in cumulative translation adjustment before reclassifications (85,000) 84,000 (319,000) 89,000 Income taxes — — — — Net current period other comprehensive (loss) income (85,000) 84,000 (319,000) 89,000 Ending accumulated foreign currency translation 226,000 780,000 226,000 780,000 Retirement plans: Beginning accumulated retirement plans benefit cost (1,947,000) (969,000) (1,980,000) (3,608,000) Amortization of net actuarial loss and prior service cost 33,000 20,000 66,000 80,000 Net actuarial gains arising during the period — — — 2,579,000 Income taxes — — — — Net current period other comprehensive income 33,000 20,000 66,000 2,659,000 Ending accumulated retirement plans benefit cost (1,914,000) (949,000) (1,914,000) (949,000) Accumulated other comprehensive loss, net of taxes $ (1,688,000) $ (169,000) $ (1,688,000) $ (169,000) |
STOCKHOLDERS'EQUITY (DEFICIT) (
STOCKHOLDERS'EQUITY (DEFICIT) (Tables) - Equity-classified share options | 6 Months Ended |
Mar. 31, 2021 | |
Share-based compensation | |
Summary of the Activity in Share Options | A summary of the activity in Barnwell’s equity-classified share options from October 1, 2020 through March 31, 2021 is presented below: Options Shares Weighted- Weighted- Aggregate Outstanding at October 1, 2020 — $ — Granted 665,000 3.36 Exercised — — Expired/Forfeited — — Outstanding at March 31, 2021 665,000 $ 3.36 9.4 $ — Exercisable at March 31, 2021 — $ — — $ — |
Schedule of Assumptions Used in Estimating Fair Value | The following assumptions were used in estimating the fair value of the equity-classified share options granted on February 9, 2021: > 10% Owner-Employee Others Number of shares 60,000 605,000 Expected volatility 127.4% 105.8% Expected dividends None None Expected term (in years) 3.5 6.0 Risk-free interest rate 0.19% 0.82% Expected forfeitures None None Fair value per share $2.51 $2.70 |
INFORMATION RELATING TO THE C_2
INFORMATION RELATING TO THE CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Tables) | 6 Months Ended |
Mar. 31, 2021 | |
Supplemental Cash Flow Elements [Abstract] | |
Schedule of supplemental cash flow information | Six months ended 2021 2020 Supplemental disclosure of cash flow information: Cash paid (received) during the year for: Income taxes paid (refunded), net $ 85,000 $ (94,000) |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) | 6 Months Ended |
Mar. 31, 2021 | |
Kaupulehu Developments | |
Principles of Consolidation | |
Ownership interest in subsidiaries (as a percent) | 77.60% |
KD Kona 2013 LLLP | |
Principles of Consolidation | |
Ownership interest in subsidiaries (as a percent) | 75.00% |
NET LOSS PER COMMON SHARE (Deta
NET LOSS PER COMMON SHARE (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2021 | Mar. 31, 2020 | |
Net Earnings (Loss) (Numerator) | ||||
Basic | $ (856) | $ (1,514) | $ (272) | $ (1,928) |
Effect of dilutive securities - common stock options | 0 | 0 | 0 | 0 |
Diluted | $ (856) | $ (1,514) | $ (272) | $ (1,928) |
Shares (Denominator) | ||||
Basic (in shares) | 8,277,160 | 8,277,160 | 8,277,160 | 8,277,160 |
Effect of dilutive securities - common stock options (in shares) | 0 | 0 | 0 | 0 |
Diluted (in shares) | 8,277,160 | 8,277,160 | 8,277,160 | 8,277,160 |
Per-Share Amount | ||||
Basic net earnings (loss) per share (in dollars per share) | $ (0.10) | $ (0.18) | $ (0.03) | $ (0.23) |
Diluted net earnings (loss) per share (in dollars per share) | $ (0.10) | $ (0.18) | $ (0.03) | $ (0.23) |
Options | ||||
Antidilutive shares of common stock excluded from the computation of diluted shares | ||||
Antidilutive shares excluded from computation of earnings (loss) per share (in shares) | 665,000 | 60,000 | 665,000 | 60,000 |
INVESTMENTS - INVESTMENT IN KUK
INVESTMENTS - INVESTMENT IN KUKIO RESORT LAND DEVELOPMENT PARTNERSHIP (Details) $ in Thousands | Nov. 27, 2013USD ($)partnership | Mar. 31, 2021USD ($)lot | Mar. 31, 2020USD ($) | Mar. 31, 2021USD ($)lot | Mar. 31, 2020USD ($) | Sep. 30, 2017a | Sep. 30, 2016 | Sep. 30, 2020USD ($) | Mar. 07, 2019 |
Investment Holdings [Line Items] | |||||||||
Equity in income (loss) of affiliates | $ 624 | $ (25) | $ 1,678 | $ (68) | |||||
Investment in Kukio Resort Land Development Partnerships | 159 | 159 | $ 901 | ||||||
Investment in land development partnerships | |||||||||
Investment Holdings [Line Items] | |||||||||
Number of limited liability limited partnerships formed | partnership | 2 | ||||||||
Cumulative cash distributions from Kukio Resort Land Development Partnerships made to date | 45,000 | ||||||||
Cumulative cash distributions from Kukio Resort Land Development Partnerships, partial payment preferred return | 459 | ||||||||
Cumulative cash distributions from Kukio Resort land development Partnerships, preferred return | 656 | ||||||||
Cash distribution from equity method investment | 2,205 | 0 | |||||||
Equity in income (loss) of affiliates | 624 | $ (25) | 1,678 | (68) | |||||
Difference between carrying amount and underlying equity | 233 | 233 | |||||||
Basis difference adjustment | 50 | $ 5 | |||||||
Investment in Kukio Resort Land Development Partnerships | $ 159 | $ 159 | $ 901 | ||||||
K D Kukio Resorts LLLP | Investment in land development partnerships | |||||||||
Investment Holdings [Line Items] | |||||||||
Ownership interest acquired | 19.60% | ||||||||
KD Kaupulehu, LLLP | Investment in land development partnerships | |||||||||
Investment Holdings [Line Items] | |||||||||
Ownership interest acquired | 19.60% | ||||||||
KD Maniniowali L L L P | Investment in land development partnerships | |||||||||
Investment Holdings [Line Items] | |||||||||
Ownership interest acquired | 19.60% | ||||||||
Indirectly Acquired Interest | Investment in land development partnerships | |||||||||
Investment Holdings [Line Items] | |||||||||
Aggregate cost | $ 5,140 | ||||||||
KD Acquisition, LLLP | Investment in land development partnerships | |||||||||
Investment Holdings [Line Items] | |||||||||
Ownership interest acquired | 19.60% | 19.60% | |||||||
KD Kona 2013 LLLP | Investment in land development partnerships | |||||||||
Investment Holdings [Line Items] | |||||||||
Ownership interest acquired | 75.00% | ||||||||
KKM Makai LLLP | Investment in land development partnerships | |||||||||
Investment Holdings [Line Items] | |||||||||
Ownership interest acquired | 34.45% | ||||||||
KD Kaupulehu LLLP Increment I | Investment in land development partnerships | |||||||||
Investment Holdings [Line Items] | |||||||||
Number of residential lots remaining to be sold | lot | 15 | 15 | |||||||
KD Kaupulehu, LLLP | KD Acquisition II, LP | Investment in land development partnerships | |||||||||
Investment Holdings [Line Items] | |||||||||
Ownership interest acquired | 55.00% | ||||||||
Kaupulehu Developments | KD Kaupulehu LLLP Increment II | |||||||||
Investment Holdings [Line Items] | |||||||||
Number of lots developed | 2 | ||||||||
Number of single family lots sold | 1 | 1 | |||||||
Replay | KD Acquisition II, LP | Investment in land development partnerships | |||||||||
Investment Holdings [Line Items] | |||||||||
Ownership interest acquired | 45.00% | ||||||||
Barnwell Industries Inc | KD Acquisition II, LP | Investment in land development partnerships | |||||||||
Investment Holdings [Line Items] | |||||||||
Ownership interest acquired | 10.80% | 10.80% | |||||||
Non-controlling Interests | Investment in land development partnerships | |||||||||
Investment Holdings [Line Items] | |||||||||
Cash distribution from equity method investment | $ 215 | ||||||||
Maximum | Kaupulehu Developments | KD Kaupulehu LLLP Increment II | |||||||||
Investment Holdings [Line Items] | |||||||||
Increment II lot size | a | 3 | ||||||||
Minimum | Investment in land development partnerships | |||||||||
Investment Holdings [Line Items] | |||||||||
Cumulative cash distributions from Kukio Resort Land Development Partnerships, threshold | $ 45,000 | ||||||||
Minimum | Kaupulehu Developments | KD Kaupulehu LLLP Increment II | |||||||||
Investment Holdings [Line Items] | |||||||||
Increment II lot size | a | 2 |
INVESTMENTS - SUMMARIZED FINANC
INVESTMENTS - SUMMARIZED FINANCIAL INFORMATION (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2021 | Mar. 31, 2020 | |
Investment Holdings [Line Items] | ||||
Revenues | $ 3,998 | $ 4,582 | $ 8,385 | $ 9,432 |
Net earnings (loss) | (794) | (1,518) | (51) | (1,937) |
Investment in land development partnerships | ||||
Investment Holdings [Line Items] | ||||
Revenues | 7,330 | 1,224 | 15,450 | 2,990 |
Gross Profit | 3,646 | 651 | 7,644 | 1,447 |
Net earnings (loss) | $ 2,702 | $ (135) | $ 5,314 | $ (303) |
INVESTMENTS - SALE OF INTEREST
INVESTMENTS - SALE OF INTEREST IN LEASEHOLD LAND (Details) | 6 Months Ended | |
Mar. 31, 2021USD ($)lot | Mar. 07, 2019USD ($)day | |
KD Acquisition II, LP | Investment in land development partnerships | ||
Investment Holdings [Line Items] | ||
Collaborative agreement, percentage of distributions | 15.00% | |
Collaborative agreement, percentage of cumulative net profits, priority payment | 10.00% | |
Collaborative agreement, percentage of cumulative net profits, priority payment, maximum amount | $ 3,000,000 | |
KD Acquisition II, LP | KD Kaupulehu, LLLP | Investment in land development partnerships | ||
Investment Holdings [Line Items] | ||
Ownership interest acquired | 55.00% | |
KD Kaupulehu LLLP Increment I | Kaupulehu Developments | ||
Investment Holdings [Line Items] | ||
Aggregate gross proceeds from sale of Increment I single family lots for calculating payments entitled to be received | $ 224,500,000 | |
Number of single family lots sold | lot | 2 | |
Number of lots remaining to be sold | lot | 15 | |
Number of lots developed | lot | 80 | |
KD Kaupulehu LLLP Increment II Phase 2A | Investment in land development partnerships | ||
Investment Holdings [Line Items] | ||
Number of single family lots, rights to | 3 | |
KD Kaupulehu LLLP Increment II Phase 2A, lots completed subsequent to Phase 2A | Investment in land development partnerships | ||
Investment Holdings [Line Items] | ||
Number of single family lots, rights to | 4 | |
Collaborative agreement, commitment to construct improvements, term | day | 90 | |
KD Development, LLC | Investment in land development partnerships | ||
Investment Holdings [Line Items] | ||
Collaborative agreement, fees, percentage of cumulative net profits | 0.72% | |
Pool Of Various Individuals | Investment in land development partnerships | ||
Investment Holdings [Line Items] | ||
Collaborative agreement, fees, percentage of cumulative net profits | 0.20% | |
Aggregrate gross procceds greater than $100,000,000 up to $300,000,000 | KD Kaupulehu LLLP Increment I | Kaupulehu Developments | ||
Investment Holdings [Line Items] | ||
Payments entitled to be received as percentage of gross proceeds from sale of single family lots | 10.00% | |
Aggregate gross proceeds in excess of $300,000,000 | KD Kaupulehu LLLP Increment I | Kaupulehu Developments | ||
Investment Holdings [Line Items] | ||
Payments entitled to be received as percentage of gross proceeds from sale of single family lots | 14.00% | |
Minimum | Aggregrate gross procceds greater than $100,000,000 up to $300,000,000 | KD Kaupulehu LLLP Increment I | Kaupulehu Developments | ||
Investment Holdings [Line Items] | ||
Aggregate gross proceeds from sale of Increment I single family lots for calculating payments entitled to be received | $ 100,000,000 | |
Minimum | Aggregate gross proceeds in excess of $300,000,000 | KD Kaupulehu LLLP Increment I | Kaupulehu Developments | ||
Investment Holdings [Line Items] | ||
Aggregate gross proceeds from sale of Increment I single family lots for calculating payments entitled to be received | 300,000,000 | |
Maximum | Aggregrate gross procceds greater than $100,000,000 up to $300,000,000 | KD Kaupulehu LLLP Increment I | Kaupulehu Developments | ||
Investment Holdings [Line Items] | ||
Aggregate gross proceeds from sale of Increment I single family lots for calculating payments entitled to be received | $ 300,000,000 |
INVESTMENTS - SUMMARY OF REVENU
INVESTMENTS - SUMMARY OF REVENUES (Details) - Kaupulehu Developments - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2021 | Mar. 31, 2020 | |
Investment Holdings [Line Items] | ||||
Revenues - sale of interest in leasehold land | $ 0 | $ 0 | $ 485 | $ 0 |
Fees - included in general and administrative expenses | 0 | 0 | (59) | 0 |
Sale of interest in leasehold land, net of fees paid | $ 0 | $ 0 | $ 426 | $ 0 |
INVESTMENTS - INVESTMENT IN LEA
INVESTMENTS - INVESTMENT IN LEASEHOLD LAND INTEREST - LOT 4C (Details) a in Thousands | Mar. 31, 2021a |
Investment in leasehold land interest – Lot 4C | |
Investment Holdings [Line Items] | |
Area of land (in acres) | 1 |
OTHER NON-CURRENT ASSET (Detail
OTHER NON-CURRENT ASSET (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Sep. 30, 2020 |
Other Assets, Noncurrent [Abstract] | ||
Other non-current asset | $ 250 | $ 0 |
ASSET HELD FOR SALE (Details)
ASSET HELD FOR SALE (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Sep. 30, 2020 |
Asset Held For Sale [Abstract] | ||
Asset held for sale | $ 699 | $ 699 |
OIL AND NATURAL GAS PROPERTIES
OIL AND NATURAL GAS PROPERTIES (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2019 | Mar. 31, 2021 | Mar. 31, 2020 | |
Oil and Natural Gas Properties [Line Items] | |||||
Proceeds from sale of oil and natural gas assets | $ 0 | $ 594,000 | |||
Impairment of assets | $ 0 | $ 1,637,000 | $ 630,000 | $ 1,637,000 | |
Barnwell Industries Inc | Progress | |||||
Oil and Natural Gas Properties [Line Items] | |||||
Proceeds from sale of oil and natural gas assets | $ 594,000 |
RETIREMENT PLANS (Details)
RETIREMENT PLANS (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 6 Months Ended | |||
Apr. 30, 2021 | Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2019 | Mar. 31, 2021 | Mar. 31, 2020 | |
Other disclosures | ||||||
Net actuarial gains arising during the period | $ 0 | $ 0 | $ 0 | $ 880 | ||
Reduction in unrecognized benefit costs previously included in AOCI | (33) | (20) | (66) | (80) | ||
Curtailment gain | 0 | 0 | 0 | 1,699 | ||
Pension Plan | ||||||
Net periodic benefit cost: | ||||||
Service cost | 0 | 50 | ||||
Interest cost | 64 | 72 | 129 | 155 | ||
Expected return on plan assets | (137) | (172) | (274) | (335) | ||
Amortization of prior service cost (credit) | 0 | 1 | ||||
Amortization of net actuarial loss | 10 | 0 | 20 | 35 | ||
Curtailment cost (income) | 0 | 53 | ||||
Net periodic benefit (income) cost | (63) | (100) | (125) | (41) | ||
Other disclosures | ||||||
Estimated future Pension Plan contributions | 0 | 0 | ||||
SERP | ||||||
Net periodic benefit cost: | ||||||
Service cost | 0 | 3 | ||||
Interest cost | 13 | 15 | 26 | 33 | ||
Amortization of prior service cost (credit) | 0 | (1) | ||||
Amortization of net actuarial loss | 0 | 0 | 0 | 5 | ||
Curtailment cost (income) | 0 | (53) | ||||
Net periodic benefit (income) cost | 13 | 15 | 26 | (13) | ||
Postretirement Medical | ||||||
Net periodic benefit cost: | ||||||
Service cost | 0 | 0 | ||||
Interest cost | 18 | 20 | 36 | 40 | ||
Amortization of prior service cost (credit) | 0 | 0 | ||||
Amortization of net actuarial loss | 23 | 20 | 46 | 40 | ||
Curtailment cost (income) | 0 | 0 | ||||
Net periodic benefit (income) cost | $ 41 | $ 40 | $ 82 | $ 80 | ||
Postretirement Medical | Subsequent Event | ||||||
Other disclosures | ||||||
Curtailment gain | $ 2,000 | |||||
Pension Plan And SERP | ||||||
Other disclosures | ||||||
Net actuarial gains arising during the period | $ 880 | |||||
Reduction in unrecognized benefit costs previously included in AOCI | 1,699 | |||||
Curtailment gain | $ 1,699 |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2021 | Mar. 31, 2020 | |
Components of earnings (loss) before income taxes, after adjusting the earnings (loss) for non-controlling interests | ||||
United States | $ (931) | $ 701 | $ 491 | $ 554 |
Canada | 109 | (2,215) | (666) | (2,484) |
Total | (822) | (1,514) | (175) | (1,930) |
Components of the income tax provision (benefit) | ||||
Current | 59 | 0 | 83 | 7 |
Deferred | (25) | 0 | 14 | (9) |
Total | $ 34 | $ 0 | $ 97 | $ (2) |
REVENUE FROM CONTRACTS WITH C_2
REVENUE FROM CONTRACTS WITH CUSTOMERS - DISAGGREGATION OF REVENUE (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2021 | Mar. 31, 2020 | |
Disaggregation of Revenue [Line Items] | ||||
Revenue before interest income | $ 3,998 | $ 4,573 | $ 8,385 | $ 9,416 |
Oil | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue before interest income | 1,933 | 1,478 | 3,313 | 3,203 |
Natural gas | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue before interest income | 461 | 307 | 836 | 629 |
Natural gas liquids | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue before interest income | 158 | 125 | 290 | 219 |
Drilling and pump | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue before interest income | 1,389 | 2,593 | 3,331 | 5,239 |
Contingent residual payments | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue before interest income | 485 | |||
Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue before interest income | 57 | 70 | 130 | 126 |
United states | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue before interest income | 1,393 | 2,593 | 3,820 | 5,246 |
Canada | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue before interest income | 2,605 | 1,980 | 4,565 | 4,170 |
Goods transferred at a point in time | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue before interest income | 2,609 | 1,980 | 5,054 | 4,177 |
Services transferred over time | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue before interest income | 1,389 | 2,593 | 3,331 | 5,239 |
Oil and natural gas | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue before interest income | 2,552 | 1,910 | 4,439 | 4,051 |
Oil and natural gas | Oil | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue before interest income | 1,933 | 1,478 | 3,313 | 3,203 |
Oil and natural gas | Natural gas | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue before interest income | 461 | 307 | 836 | 629 |
Oil and natural gas | Natural gas liquids | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue before interest income | 158 | 125 | 290 | 219 |
Oil and natural gas | Drilling and pump | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue before interest income | 0 | 0 | 0 | 0 |
Oil and natural gas | Contingent residual payments | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue before interest income | 0 | |||
Oil and natural gas | Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue before interest income | 0 | 0 | 0 | 0 |
Oil and natural gas | United states | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue before interest income | 0 | 0 | 0 | 0 |
Oil and natural gas | Canada | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue before interest income | 2,552 | 1,910 | 4,439 | 4,051 |
Oil and natural gas | Goods transferred at a point in time | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue before interest income | 2,552 | 1,910 | 4,439 | 4,051 |
Oil and natural gas | Services transferred over time | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue before interest income | 0 | 0 | 0 | 0 |
Contract drilling | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue before interest income | 1,389 | 2,593 | 3,331 | 5,239 |
Contract drilling | Oil | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue before interest income | 0 | 0 | 0 | 0 |
Contract drilling | Natural gas | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue before interest income | 0 | 0 | 0 | 0 |
Contract drilling | Natural gas liquids | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue before interest income | 0 | 0 | 0 | 0 |
Contract drilling | Drilling and pump | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue before interest income | 1,389 | 2,593 | 3,331 | 5,239 |
Contract drilling | Contingent residual payments | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue before interest income | 0 | |||
Contract drilling | Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue before interest income | 0 | 0 | 0 | 0 |
Contract drilling | United states | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue before interest income | 1,389 | 2,593 | 3,331 | 5,239 |
Contract drilling | Canada | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue before interest income | 0 | 0 | 0 | 0 |
Contract drilling | Goods transferred at a point in time | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue before interest income | 0 | 0 | 0 | 0 |
Contract drilling | Services transferred over time | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue before interest income | 1,389 | 2,593 | 3,331 | 5,239 |
Land investment | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue before interest income | 0 | 0 | 485 | 0 |
Land investment | Oil | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue before interest income | 0 | 0 | 0 | 0 |
Land investment | Natural gas | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue before interest income | 0 | 0 | 0 | 0 |
Land investment | Natural gas liquids | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue before interest income | 0 | 0 | 0 | 0 |
Land investment | Drilling and pump | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue before interest income | 0 | 0 | 0 | 0 |
Land investment | Contingent residual payments | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue before interest income | 485 | |||
Land investment | Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue before interest income | 0 | 0 | 0 | 0 |
Land investment | United states | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue before interest income | 0 | 0 | 485 | 0 |
Land investment | Canada | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue before interest income | 0 | 0 | 0 | 0 |
Land investment | Goods transferred at a point in time | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue before interest income | 0 | 0 | 485 | 0 |
Land investment | Services transferred over time | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue before interest income | 0 | 0 | 0 | 0 |
Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue before interest income | 57 | 70 | 130 | 126 |
Other | Oil | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue before interest income | 0 | 0 | 0 | 0 |
Other | Natural gas | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue before interest income | 0 | 0 | 0 | 0 |
Other | Natural gas liquids | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue before interest income | 0 | 0 | 0 | 0 |
Other | Drilling and pump | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue before interest income | 0 | 0 | 0 | 0 |
Other | Contingent residual payments | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue before interest income | 0 | |||
Other | Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue before interest income | 57 | 70 | 130 | 126 |
Other | United states | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue before interest income | 4 | 0 | 4 | 7 |
Other | Canada | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue before interest income | 53 | 70 | 126 | 119 |
Other | Goods transferred at a point in time | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue before interest income | 57 | 70 | 130 | 126 |
Other | Services transferred over time | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue before interest income | $ 0 | $ 0 | $ 0 | $ 0 |
REVENUE FROM CONTRACTS WITH C_3
REVENUE FROM CONTRACTS WITH CUSTOMERS - CONTRACT BALANCES (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Sep. 30, 2020 |
Revenue from Contract with Customer [Abstract] | ||
Accounts receivables from contracts with customers | $ 2,125 | $ 1,772 |
Contract assets | 486 | 413 |
Contract liabilities | $ 391 | $ 1,097 |
REVENUE FROM CONTRACTS WITH C_4
REVENUE FROM CONTRACTS WITH CUSTOMERS - NARRATIVE (Details) - USD ($) $ in Thousands | 6 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Sep. 30, 2020 | |
Disaggregation of Revenue [Line Items] | |||
Contract with customer, liability, current | $ 391 | $ 1,097 | |
Contract with customer, liability, revenue recognized | 789 | $ 707 | |
Revenue, remaining performance obligation (backlog) | $ 2,609 | ||
Percentage anticipated to be recognized in next 12 months | 7.00% | ||
Capitalized contract cost net, preconstruction | $ 105 | $ 145 | |
Minimum | |||
Disaggregation of Revenue [Line Items] | |||
Contract receivable retainage percentage | 5.00% | ||
Maximum | |||
Disaggregation of Revenue [Line Items] | |||
Contract receivable retainage percentage | 10.00% |
SEGMENT INFORMATION (Details)
SEGMENT INFORMATION (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2021 | Mar. 31, 2020 | |
Revenues: | ||||
Revenue before interest income | $ 3,998,000 | $ 4,573,000 | $ 8,385,000 | $ 9,416,000 |
Interest income | 0 | 9,000 | 0 | 16,000 |
Total revenues | 3,998,000 | 4,582,000 | 8,385,000 | 9,432,000 |
Depletion, depreciation, and amortization: | ||||
Depletion, depreciation, and amortization | 227,000 | 687,000 | 503,000 | 1,392,000 |
Asset Impairment Charges | ||||
Impairment of assets | 0 | 1,637,000 | 630,000 | 1,637,000 |
Operating profit (loss) (before general and administrative expenses): | ||||
Operating profit (loss) (before general and administrative expenses) | 547,000 | 529,000 | 1,485,000 | 1,640,000 |
Equity in income (loss) of affiliates: | ||||
Equity in income (loss) of affiliates | 624,000 | (25,000) | 1,678,000 | (68,000) |
General and administrative expenses | (1,928,000) | (2,031,000) | (3,113,000) | (3,527,000) |
Interest expense | (3,000) | 0 | (4,000) | 0 |
Interest income | 0 | 9,000 | 0 | 16,000 |
(Loss) earnings before income taxes | (760,000) | (1,518,000) | 46,000 | (1,939,000) |
Intersegment eliminations | ||||
Revenues: | ||||
Total revenues | 0 | |||
Oil and natural gas | ||||
Revenues: | ||||
Revenue before interest income | 2,552,000 | 1,910,000 | 4,439,000 | 4,051,000 |
Total revenues | 2,552,000 | 1,910,000 | 4,439,000 | 4,051,000 |
Depletion, depreciation, and amortization: | ||||
Depletion, depreciation, and amortization | 146,000 | 584,000 | 341,000 | 1,190,000 |
Asset Impairment Charges | ||||
Impairment of assets | 0 | 1,637,000 | 630,000 | 1,637,000 |
Operating profit (loss) (before general and administrative expenses): | ||||
Operating profit (loss) (before general and administrative expenses) | 647,000 | (1,596,000) | 274,000 | (1,274,000) |
Contract drilling | ||||
Revenues: | ||||
Revenue before interest income | 1,389,000 | 2,593,000 | 3,331,000 | 5,239,000 |
Total revenues | 1,389,000 | 2,593,000 | 3,331,000 | 5,239,000 |
Depletion, depreciation, and amortization: | ||||
Depletion, depreciation, and amortization | 77,000 | 91,000 | 153,000 | 176,000 |
Operating profit (loss) (before general and administrative expenses): | ||||
Operating profit (loss) (before general and administrative expenses) | (153,000) | 731,000 | 605,000 | 1,478,000 |
Land investment | ||||
Revenues: | ||||
Revenue before interest income | 0 | 0 | 485,000 | 0 |
Total revenues | 0 | 0 | 485,000 | 0 |
Operating profit (loss) (before general and administrative expenses): | ||||
Operating profit (loss) (before general and administrative expenses) | 0 | 0 | 485,000 | 0 |
Other | ||||
Revenues: | ||||
Revenue before interest income | 57,000 | 70,000 | 130,000 | 126,000 |
Total revenues | 57,000 | 79,000 | 130,000 | 142,000 |
Depletion, depreciation, and amortization: | ||||
Depletion, depreciation, and amortization | 4,000 | 12,000 | 9,000 | 26,000 |
Operating profit (loss) (before general and administrative expenses): | ||||
Operating profit (loss) (before general and administrative expenses) | 53,000 | 58,000 | 121,000 | 100,000 |
Gain on sale of asset | ||||
Operating profit (loss) (before general and administrative expenses): | ||||
Operating profit (loss) (before general and administrative expenses) | $ 0 | $ 1,336,000 | $ 0 | $ 1,336,000 |
ACCUMULATED OTHER COMPREHENSI_3
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2019 | Mar. 31, 2021 | Mar. 31, 2020 | Sep. 30, 2020 | |
Changes in foreign currency translation | ||||||
Beginning accumulated foreign currency translation | $ 311 | $ 696 | $ 691 | $ 545 | $ 691 | |
Change in cumulative translation adjustment before reclassifications | (85) | 84 | (319) | 89 | ||
Income taxes | 0 | 0 | 0 | 0 | ||
Net current period other comprehensive (loss) income | (85) | 84 | (319) | 89 | ||
Ending accumulated foreign currency translation | 226 | 780 | 696 | 226 | 780 | |
Changes in retirement plans | ||||||
Beginning accumulated retirement plans benefit cost | (1,947) | (969) | (3,608) | (1,980) | (3,608) | |
Amortization of net actuarial loss and prior service cost | 33 | 20 | 66 | 80 | ||
Net actuarial gains arising during the period | 0 | 0 | 0 | 2,579 | ||
Income taxes | 0 | 0 | 0 | 0 | ||
Net current period other comprehensive income | 33 | 20 | 66 | 2,659 | ||
Ending accumulated retirement plans benefit cost | (1,914) | (949) | $ (969) | (1,914) | (949) | |
Accumulated other comprehensive loss, net of taxes | $ (1,688) | $ (169) | $ (1,688) | $ (169) | $ (1,435) |
DEBT (Details)
DEBT (Details) $ in Thousands, $ in Thousands | Apr. 18, 2021USD ($) | Apr. 28, 2020USD ($) | Mar. 31, 2021CAD ($) | Dec. 31, 2020CAD ($) | Mar. 31, 2021USD ($) | Mar. 31, 2021CAD ($) | Sep. 30, 2020USD ($) |
Debt Instrument [Line Items] | |||||||
Debt, long-term portion | $ 64 | $ 58 | |||||
Paycheck Protection Program Loan | |||||||
Debt Instrument [Line Items] | |||||||
Debt face amount | $ 147 | ||||||
Debt term | 2 years | ||||||
Interest rate | 1.00% | ||||||
Debt, current portion | 131 | ||||||
Debt, long-term portion | 16 | ||||||
Paycheck Protection Program Loan | Subsequent Event | |||||||
Debt Instrument [Line Items] | |||||||
Loan amount forgiven | $ 147 | ||||||
Canada Emergency Business Account Loan | |||||||
Debt Instrument [Line Items] | |||||||
Debt face amount | $ 40 | $ 47 | $ 60 | ||||
Debt term | 3 years | ||||||
Interest rate | 5.00% | ||||||
Debt instrument, net increase | $ 20 | ||||||
Percentage of loan to be repaid for debt forgiveness | 66.60% | ||||||
Percentage of debt forgiveness | 33.30% | ||||||
Canada Emergency Business Account Loan | Maximum | |||||||
Debt Instrument [Line Items] | |||||||
Loan amount forgiven | $ 20 |
STOCKHOLDERS' EQUITY (DEFICIT)
STOCKHOLDERS' EQUITY (DEFICIT) - SHARE-BASED COMPENSATION (Details) - USD ($) $ / shares in Units, $ in Thousands | Feb. 09, 2021 | Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2021 | Mar. 31, 2020 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number of shares granted (in shares) | 665,000 | ||||
Total unrecognized compensation cost | $ 1,649 | $ 1,649 | |||
Period over which unrecognized compensation cost is expected to be recognized | 2 years 10 months 24 days | ||||
Share-based compensation expense | $ 151 | $ 0 | $ 151 | $ 0 | |
Share-based Payment Arrangement, Tranche One | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number of shares granted (in shares) | 605,000 | ||||
Shares exercise price | $ 3.33 | ||||
Shares vesting period | 3 years | ||||
Shares expiration period | 10 years | ||||
Share-based Payment Arrangement, Tranche Two | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number of shares granted (in shares) | 60,000 | ||||
Shares exercise price | $ 3.66 | ||||
Shares vesting period | 3 years | ||||
Shares expiration period | 5 years | ||||
Share-based Payment Arrangement, Independent Director | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number of shares granted (in shares) | 310,000 | ||||
Share-based Payment Arrangement, Employee | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number of shares granted (in shares) | 355,000 | ||||
Equity Incentive Plan 2018 | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Shares authorized and reserved for issuance (in shares) | 800,000 | 800,000 | |||
Number of shares available for grant (in shares) | 135,000 | 135,000 |
STOCKHOLDERS' EQUITY (DEFICIT_2
STOCKHOLDERS' EQUITY (DEFICIT) - EQUITY-CLASSIFIED AWARDS (Details) - USD ($) | Feb. 09, 2021 | Mar. 31, 2021 |
Shares | ||
Granted (in shares) | 665,000 | |
Equity-classified share options | ||
Shares | ||
Outstanding at the beginning of the period (in shares) | 0 | |
Granted (in shares) | 665,000 | |
Exercised (in shares) | 0 | |
Expired/Forfeited (in shares) | 0 | |
Outstanding at the end of the period (in shares) | 665,000 | |
Exercisable a the end of the period (in shares) | 0 | |
Weighted-Average Exercise Price | ||
Outstanding at the beginning of the period (in dollars per share) | $ 0 | |
Granted (in dollars per share) | 3.36 | |
Exercised (in dollars per share) | 0 | |
Expired/Forfeited (in dollars per share) | 0 | |
Outstanding at the end of the period (in dollars per share) | 3.36 | |
Exercisable at the end of the period (in dollars per share) | $ 0 | |
Weighted-Average Remaining Contractual Term | ||
Options outstanding, weighted average remaining contractual life | 9 years 4 months 24 days | |
Aggregate Intrinsic Value | ||
Options outstanding, aggregate intrinsic value | $ 0 | |
Options exercisable, aggregate intrinsic value | $ 0 |
STOCKHOLDERS' EQUITY (DEFICIT_3
STOCKHOLDERS' EQUITY (DEFICIT) - ESTIMATED FAIR VALUE OF EQUITY-CLASSIFIED AWARDS (Details) - $ / shares | Feb. 09, 2021 | Mar. 31, 2021 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of shares granted (in shares) | 665,000 | |
Equity-classified share options | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of shares granted (in shares) | 665,000 | |
Equity-classified share options | Share-based Payment Arrangement, >10% Owner-Employee | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of shares granted (in shares) | 60,000 | |
Expected volatility | 127.40% | |
Expected dividends | 0.00% | |
Expected term (in years) | 3 years 6 months | |
Risk-free interest rate | 0.19% | |
Expected forfeitures | 0.00% | |
Fair value per share (in dollars per share) | $ 2.51 | |
Equity-classified share options | Share-based Payment Arrangement, Others | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of shares granted (in shares) | 605,000 | |
Expected volatility | 105.80% | |
Expected dividends | 0.00% | |
Expected term (in years) | 6 years | |
Risk-free interest rate | 0.82% | |
Expected forfeitures | 0.00% | |
Fair value per share (in dollars per share) | $ 2.70 |
STOCKHOLDERS' EQUITY (DEFICIT_4
STOCKHOLDERS' EQUITY (DEFICIT) - AT THE MARKET OFFERING (Details) - USD ($) $ / shares in Units, $ in Thousands | Mar. 31, 2021 | Mar. 16, 2021 | Sep. 30, 2020 |
Sale of Stock [Line Items] | |||
Common stock, par value (in dollars per share) | $ 0.50 | $ 0.50 | |
Deferred offering costs | $ 483 | $ 0 | |
At The Market Offering | |||
Sale of Stock [Line Items] | |||
Common stock, par value (in dollars per share) | $ 0.50 | ||
Sale of stock, maximum aggregate sales price | 25,000 | ||
Entity public float, maximum amount | $ 75,000 |
CONTINGENCIES (Details)
CONTINGENCIES (Details) - Unfavorable Regulatory Action - Contract drilling $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Sep. 30, 2020USD ($)well | Mar. 31, 2020well | Sep. 30, 2019wellcustomer | Jul. 28, 2020USD ($) | |
Loss Contingencies [Line Items] | ||||
Number of wells not meeting specifications for plumbness | well | 1 | 2 | ||
Number of customers with wells not meeting specifications for plumbness | customer | 1 | |||
Warranty agreement, term | 5 years | |||
Triggering event, minimum pump failures attributable to lack of plumbness | 2 | |||
Number of wells not meeting permitted depth | well | 2 | |||
Estimate of possible loss | $ | $ 1,200 | |||
Loss contingency accrual | $ | $ 300 |
INFORMATION RELATING TO THE C_3
INFORMATION RELATING TO THE CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Supplemental disclosure of cash flow information: | ||
Income taxes paid (refunded), net | $ 85 | $ (94) |
Oil and natural gas | ||
Supplemental disclosures of cash flow information: | ||
Increase (decrease) in capital expenditure accruals related to oil and natural gas exploration and development | (381) | 670 |
Increase (decrease) in capital expenditure accruals related to oil and natural gas asset retirement obligations | $ (12) | $ 527 |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2021USD ($) | Mar. 31, 2020USD ($) | Mar. 31, 2021USD ($)lot | Mar. 31, 2020USD ($) | |
Kaupulehu Developments | ||||
Related party transactions | ||||
Revenues - sale of interest in leasehold land | $ 0 | $ 0 | $ 485 | $ 0 |
Kaupulehu Developments | KD Kaupulehu, LLLP | Investment in land development partnerships | Increment I | ||||
Related party transactions | ||||
Revenues - sale of interest in leasehold land | $ 485 | |||
Number of single family lots sold | lot | 2 | |||
KD Acquisition, LLLP | Investment in land development partnerships | ||||
Related party transactions | ||||
Ownership interest acquired | 19.60% | 19.60% | ||
KD Acquisition II, LP | Barnwell Industries Inc | Investment in land development partnerships | ||||
Related party transactions | ||||
Ownership interest acquired | 10.80% | 10.80% |
SUBSEQUENT EVENTS (Details)
SUBSEQUENT EVENTS (Details) $ in Thousands | Apr. 18, 2021USD ($) | Apr. 08, 2021USD ($) | May 14, 2021USD ($)lot | Apr. 30, 2021USD ($) | Mar. 31, 2021USD ($) | Mar. 31, 2020USD ($) | Mar. 31, 2021USD ($)lot | Mar. 31, 2020USD ($) | Sep. 30, 2020USD ($) |
Subsequent Event [Line Items] | |||||||||
Curtailment gain | $ 0 | $ 0 | $ 0 | $ 1,699 | |||||
Proceeds from sale of oil and natural gas assets | 0 | 594 | |||||||
Income taxes receivable | 474 | 474 | $ 472 | ||||||
Kaupulehu Developments | |||||||||
Subsequent Event [Line Items] | |||||||||
Sale of interest in leasehold land | $ 0 | $ 0 | $ 485 | 0 | |||||
Kaupulehu Developments | KD Kaupulehu LLLP Increment I | |||||||||
Subsequent Event [Line Items] | |||||||||
Number of single family lots sold | lot | 2 | ||||||||
Investment in land development partnerships | |||||||||
Subsequent Event [Line Items] | |||||||||
Cash distribution from equity method investment | $ 2,205 | $ 0 | |||||||
Subsequent Event | Paycheck Protection Program Loan | |||||||||
Subsequent Event [Line Items] | |||||||||
Loan amount forgiven | $ 147 | ||||||||
Subsequent Event | Postretirement Medical | |||||||||
Subsequent Event [Line Items] | |||||||||
Curtailment gain | $ 2,000 | ||||||||
Subsequent Event | Kaupulehu Developments | KD Kaupulehu LLLP Increment I | |||||||||
Subsequent Event [Line Items] | |||||||||
Sale of interest in leasehold land | $ 548 | ||||||||
Number of single family lots sold | lot | 3 | ||||||||
Subsequent Event | Barnwell Industries Inc | Hillsdown, Alberta, Canada | |||||||||
Subsequent Event [Line Items] | |||||||||
Proceeds from sale of oil and natural gas assets | $ 138 | ||||||||
Income taxes receivable | 70 | ||||||||
Subsequent Event | Barnwell Industries Inc | North Twining, Alberta, Canada | |||||||||
Subsequent Event [Line Items] | |||||||||
Payments to acquire oil and natural gas properties | $ 340 | ||||||||
Subsequent Event | Investment in land development partnerships | |||||||||
Subsequent Event [Line Items] | |||||||||
Cash distribution from equity method investment | $ 1,554 |