Barnwell Industries (BRN) risk factors, FY2025 10-K

Other

1. 01The Company faces issues that could impair our ability to continue as a going concern in the futureNew
2. 02Continued actions by an activist shareholder have had, and may continue to have, a significant negative impact on our ability to execute our business strategies and have had, and may continue to have, an adverse affect on our results of operations and financial conditionNew
3. 03Stockholders may be diluted significantly through our efforts to obtain financing, satisfy obligations through the issuance of securities or use our stock as consideration in certain transactions
4. 04A small number of stockholders, including our General Counsel and Secretary, own a significant amount of our common stock and may have influence over the Company32% rewritten
5. 05Our operations are subject to currency rate fluctuations
6. 06Adverse changes in actuarial assumptions used to calculate retirement plan costs due to economic or other factors, or lower returns on plan assets could adversely affect Barnwell’s results and financial condition
7. 07Declines in the price of our common stock could adversely affect the value of an asset on our balance sheet and our stockholders’ equity31% rewritten
8. 08The price of our common stock has been volatile and could continue to fluctuate substantially
9. 09Failure to retain key personnel could hurt our operations

Risks Related to Oil and Natural Gas Segment

1. 10Acquisitions or discoveries of additional reserves are needed to increase our oil and natural gas segment operating results and cash flow
2. 11We may not realize an adequate return on oil and natural gas investments
3. 12Oil and natural gas prices are highly volatile and further declines, or extended low prices will significantly affect our financial condition and results of operations
4. 13The inability of one or more of our working interest partners to meet their obligations may adversely affect our financial results
5. 14We may incur material costs to comply with or as a result of health, safety, and environmental laws and regulations
6. 15The AER may require purchasers of AER licensed oil and natural gas assets to be within Tiers 1 or 2 overall rankings in the six factors group. This requirement for well transfers hinders our ability to generate capital by selling oil and natural gas assets as there are less qualified buyers
7. 16We may fail to fully identify potential problems related to acquired reserves or to properly estimate those reserves
8. 17If oil and natural gas prices decline and remain low, we may be required to take write-downs of the carrying values of our oil and natural gas properties
9. 18The oil and natural gas industry is highly competitive
10. 19We are not the operator and have limited influence over the operations of certain of our oil and natural gas properties
11. 20Actual reserves will vary from reserve estimates
12. 21Part of our strategy involves using some of the latest available horizontal drilling and completion techniques. The results of our drilling are subject to drilling and completion technique risks, and results may not meet our expectations for reserves or production
13. 22Delays in business operations could adversely affect the amount and timing of our cash inflows
14. 23The oil and natural gas market in which we operate exposes us to potential liabilities that may not be covered by insurance
15. 24Our operations are subject to domestic and foreign government regulation and other risks, particularly in Canada and the U.S
16. 25Changes in U.S. trade policy, including the imposition of tariffs and the resulting consequences, could adversely affect our business, prospects, financial condition, and operating results
17. 26Compliance with foreign tax and other laws may adversely affect our operations
18. 27Unforeseen title defects may result in a loss of entitlement to production and reserves

Risks Related to Land Investment Segment

1. 28Receipt of future payments from KD II and cash distributions from the Kukio Resort Land Development Partnerships is dependent upon the developer’s continued efforts and ability to develop the property100% rewritten
2. 29We hold investment interests in unconsolidated land development partnerships, which are accounted for using the equity method of accounting, in which we do not have a controlling interest. These investments involve risks and are highly illiquid
3. 30Our land investment business is concentrated in the state of Hawaii. As a result, our financial results are dependent on the economic growth and health of Hawaii, particularly the island of Hawaii
4. 31The occurrence of natural disasters in Hawaii could adversely affect our business