RESERVE PETROLEUM CO

Previous wording

We caution you not to place undue reliance on these forward-looking statements, which speak only as of the date of this Form 10-Q, and we undertake no obligation to update this information because of new information, future developments, or otherwise. You are urged to carefully review and consider the disclosures made in this and our other reports filed with the Securities and Exchange Commission that attempt to advise interested parties of the risks and factors that may affect our business.

Current wording

We caution you not to place undue reliance on these forward-looking statements, which speak only as of the date of this Form 10-Q, and we undertake no obligation to update this information because of new information, future developments, or except as required by law. You are urged to carefully review and consider the disclosures made in this and our other reports filed with the Securities and Exchange Commission that attempt to advise interested parties of the risks and factors that may affect our business.

Previous wording

Please refer to the consolidated balance sheets and the consolidated statements of cash flows in this Form 10-Q to supplement the following discussion. In the first six months of 2024, the Company continued to fund its business activity using internal sources of cash. The Company had net cash provided by operating activities of $2,916,586 in the six months ended June 30, 2024. The Company had sales of equity securities of $2,441,691, cash provided by property dispositions of $236,090, distributions from other investments of $4,000, and maturity of available-for-sale debt securities of $2,534,727 for total cash provided by investing activities of $5,216,508. The Company utilized cash for the purchase of property of $5,184,855, the purchase of equity securities of $2,546,077, purchase of investments of $380,070, and purchase of available-for-sale debt securities of $313,826 for cash applied to investing activities of $8,424,828. The Company paid $1,546,874 in stockholder dividends, $164,420 for the purchase of treasury stock, and $70,347 in payments on the Grand Woods note payable, for total cash applied to financing activities of $1,781,641. Cash provided by financing activities included Grand Woods Class C non-controlling interest contributions of $7,552. Cash and cash equivalents decreased $2,065,823 (40%) to $3,152,651 at June 30, 2024, from $5,218,474 at December 31, 2023.

Current wording

Please refer to the consolidated balance sheets and the consolidated statements of cash flows in this Form 10-Q to supplement the following discussion. In the first nine months of 2024, the Company continued to fund its business activity using internal sources of cash. The Company had net cash provided by operating activities of $5,521,459 in the nine months ended September 30, 2024. The Company had sales of equity securities of $2,649,885, cash provided by property dispositions of $243,081, distributions from other investments of $4,000, and maturity of available-for-sale debt securities of $2,534,727 for total cash provided by investing activities of $5,431,693. The Company utilized cash for the purchase of property of $7,160,505, the purchase of equity securities of $2,798,682, purchase of investments of $385,165, and purchase of available-for-sale debt securities of $313,826 for cash applied to investing activities of $10,658,178. The Company paid $1,546,874 in stockholder dividends, $172,900 for the purchase of treasury stock, and $105,994 in payments on the Grand Woods note payable, for total cash applied to financing activities of $1,825,768. Cash provided by financing activities included Grand Woods Class C non-controlling interest contributions of $42,312. Cash and cash equivalents decreased $1,488,482 (29%) to $3,729,992 at September 30, 2024, from $5,218,474 at December 31, 2023.

Previous wording

Equity securities increased $1,119,930 (42%) to $3,783,996 as of June 30, 2024, from $2,664,066 at December 31, 2023. The increase resulted from $104,386 in net purchases, reclassification of $148,042 in cost basis for Chilean Cobalt Corp. ("C3") from Other Investments. This was a result of an Initial Public Offering on April 29, 2024. We also had $867,502 net increases in market value, including a $777,222 unrealized gain on C3.

Current wording

Equity securities increased $1,524,009 (57%) to $4,188,075 as of September 30, 2024, from $2,664,066 at December 31, 2023. The increase resulted from $148,797 in net purchases, reclassification of $148,042 in cost basis for Chilean Cobalt Corp. ("C3") from Other Investments resulting from an Initial Public Offering on April 29, 2024, and net increases in market value $1,227,170, including a $962,275 unrealized gain on C3.

Previous wording

Accounts receivable increased $461,723 (20%) to $2,828,386 as of June 30, 2024, from $2,366,663 at December 31, 2023, resulting from increases in trade and other accounts receivable of $249,135, primarily related to the increase in TWS water well drilling receivables, and oil and gas receivables of $212,588, primarily due to increased volumes on expected production accrued.

Current wording

Accounts receivable decreased $24,576 (1%) to $2,342,087 as of September 30, 2024, from $2,366,663 at December 31, 2023, resulting from decreases in trade and other accounts receivable of $57,165, primarily related to the decrease in TWS water well drilling receivables, and an increase of in oil and gas receivables of $32,589, primarily due to increased volumes on expected production accrued.

Previous wording

Accounts payable increased $26,368 (5%) to $564,164 as of June 30, 2024, from $537,796 at December 31, 2023, primarily due to timing differences in the processing of accounts payable.

Current wording

Accounts payable decreased $490,710 (91%) to $47,086 as of September 30, 2024, from $537,796 at December 31, 2023, primarily due to timing differences in the processing of accounts payable.

Previous wording

Other current liabilities increased $43,855 (342%) to $56,694 as of June 30, 2024, from $12,839 at December 31, 2023, due to an increase of $37,846 in payroll taxes resulting from bringing payroll in-house and changed timing of payroll tax remittance, and an increase in state income and accrued property taxes of $6,009.

Current wording

Other current liabilities increased $50,212 (391%) to $63,051 as of September 30, 2024, from $12,839 at December 31, 2023, due to an increase of $31,762 in payroll taxes resulting from the timing of payroll tax remittance, and an increase in state income and accrued property taxes of $18,450.

Previous wording

Discussion of Significant Changes in the Consolidated Statements of Cash Flows. As noted in the first paragraph above, net cash provided by operating activities was $2,916,586 in the six months ended June 30, 2024, an increase of $277,688 (11%) from cash provided by operations in the comparable period in 2023 of $2,638,898. For more information see “Operating Revenues” and “Other Income, Net” below.

Current wording

Discussion of Significant Changes in the Consolidated Statements of Cash Flows. As noted in the first paragraph above, net cash provided by operating activities was $5,521,459 in the nine months ended September 30, 2024, an increase of $2,382,744 (76%) from cash provided by operations in the comparable period in 2023 of $3,138,715. For more information see “Operating Revenues” and “Other Income, Net” below.

Previous wording

Cash applied to the purchase of property, plant and equipment in the six months ended June 30, 2024, was $5,184,855, an increase of $3,299,090 (175%) from cash applied to the purchase of property, plant and equipment in the comparable period in 2023 of $1,885,765. See the subheading “Exploration Costs” in the “Results of Operations” section below for additional information.

Current wording

Cash applied to the purchase of property, plant and equipment in the nine months ended September 30, 2024, was $7,160,505, an increase of $3,450,874 (93%) from cash applied to the purchase of property, plant and equipment in the comparable period in 2023 of $3,709,631.

Previous wording

Cash applied to the purchase of available-for-sale debt securities in the six months ended June 30, 2024, was $313,826, a decrease of $4,586,117 (94%) from $4,899,943 in the comparable period in 2023. Cash provided by the maturity of available-for-sale debt securities in the six months ended June 30, 2024, was $2,534,727, a decrease of $1,944,114 (43%) from $4,478,841 in the comparable period in 2023. Cash applied to investments in the six months ended June 30, 2024, was $380,070, a decrease of $52,364 (12%) from cash applied in the comparable period of 2023 of $432,434.

Current wording

Cash applied to the purchase of available-for-sale debt securities in the nine months ended September 30, 2024, was $313,826, a decrease of $5,816,892 (95%) from $6,130,718 in the comparable period in 2023. Cash provided by the maturity of available-for-sale debt securities in the nine months ended September 30, 2024, was $2,534,727, a decrease of $3,519,928 (58%) from $6,054,655 in the comparable period in 2023. Cash applied to investments in the nine months ended September 30, 2024, was $385,165, a decrease of $246,941 (39%) from cash applied in the comparable period of 2023 of $632,106.

Previous wording

Off-Balance Sheet Arrangements. The Company is a guarantor of 20% of a $860,000 development loan that matures July 15, 2025, and 20% of a construction loan of $585,000 that matures January 25, 2025 held by QSN Office Park, LLC. The Company is committed to a $250,000 investment in VCC Venture Fund I, LP, of which $125,000 (50%) is invested at June 30, 2024. The Company is committed to a $1,000,000 investment in Cortado Ventures Fund II-A, of which $600,000 (60%) is invested at June 30, 2024. The Company is committed to a$750,000 investment in Cypress MWC, LLC, of which $225,000 (30%) is invested at June 30, 2024. For more information about these entities and the related off-balance sheet arrangements, see Note 4 and Note 5 to the accompanying consolidated financial statements.

Current wording

Off-Balance Sheet Arrangements. The Company is a guarantor of 20% of a $860,000 development loan that matures July 15, 2025, and 20% of a construction loan of $585,000 that matures January 25, 2025 held by QSN Office Park, LLC. The Company is committed to a $250,000 investment in VCC Venture Fund I, LP, of which $125,000 (50%) is invested at September 30, 2024. The Company is committed to a $1,000,000 investment in Cortado Ventures Fund II-A, of which $600,000 (60%) is invested at September 30, 2024. The Company is committed to a$750,000 investment in Cypress MWC, LLC, of which $225,000 (30%) is invested at September 30, 2024. The Company also has a commitment to purchase$175,924 of a private business development fund classified under section 3(c)(7) of the Investment Company Act of 1940 where the Company has elected to use the NAV as a practical expedient to determine the fair value. For more information about these entities and the related off-balance sheet arrangements, see Note 4, Note 5 and Note 9 to the accompanying consolidated financial statements.

Previous wording

Net income attributable to common stockholders increased $894,070 (99%) to $1,793,892 in the six months ended June 30, 2024, from $899,822 in the comparable period in 2023. Net income per share attributable to common stockholders, basic, increased $5.82 to $11.58 in the six months ended June 30, 2024, from $5.76 in the comparable period in 2023. A discussion of revenue from oil and natural gas sales and other significant line items in the consolidated statements of income follows.

Current wording

Net income attributable to common stockholders increased $2,030,203 (133%) to $3,554,929 in the nine months ended September 30, 2024, from $1,524,726 in the comparable period in 2023. Net income per share attributable to common stockholders, basic, increased $13.19 to $22.96 in the nine months ended September 30, 2024, from $9.77 in the comparable period in 2023. A discussion of revenue from oil and natural gas sales and other significant line items in the consolidated statements of income follows.

Previous wording

Operating Revenues. Revenues from oil and natural gas sales increased $1,205,370 (21%) to $6,848,266 in the six months ended June 30, 2024, from $5,642,896 in the comparable period in 2023. The increase is due to an increase in oil sales of $1,047,384, an increase in natural gas sales of $173,227, and a decrease in miscellaneous oil and natural gas product sales of $15,241.

Current wording

Operating Revenues. Revenues from oil and natural gas sales increased $2,071,681 (24%) to $10,723,062 in the nine months ended September 30, 2024, from $8,651,381 in the comparable period in 2023. The increase is due to an increase in oil sales of $1,717,060, an increase in natural gas sales of $286,048, and an increase in miscellaneous oil and natural gas product sales of $68,573.

Previous wording

The $1,047,384 (23%) increase in oil sales to $5,586,883 in the six months ended June 30, 2024, from $4,539,499 in the comparable period in 2023 was the result of an increase in the volume sold and an increase in the average price per barrel (Bbl). The volume of oil sold increased 9,173 Bbls to 72,674 Bbls in the six months ended June 30, 2024, resulting in a positive volume variance of $655,778. The average price per Bbl increased $5.39 to $76.88 per Bbl in the six months ended June 30, 2024, from $71.49 per Bbl in the comparable period in 2023, resulting in a positive price variance of $391,606.

Current wording

The $1,717,060 (24%) increase in oil sales to $8,740,819 in the nine months ended September 30, 2024, from $7,023,759 in the comparable period in 2023 was the result of an increase in the volume sold and an increase in the average price per barrel (Bbl). The volume of oil sold increased 13,048 Bbls to 107,948 Bbls in the nine months ended September 30, 2024, resulting in a positive volume variance of $965,682. The average price per Bbl increased $6.96 to $80.97 per Bbl in the nine months ended September 30, 2024, from $74.01 per Bbl in the comparable period in 2023, resulting in a positive price variance of $751,378.

Previous wording

The $173,227 (18%) increase in natural gas sales to $1,145,059 in the six months ended June 30, 2024, from $971,832 in the comparable period in 2023 was the result of an increase in the volume sold and a decrease in the average price per thousand cubic feet ("MCF"). The volume of natural gas sold increased 84,016 MCF to 434,184 MCF in the six months ended June 30, 2024, from 350,168 MCF in the comparable period in 2023, resulting in a positive volume variance of $233,564. The average price per MCF decreased $0.14 to $2.64 per MCF in the six months ended June 30, 2024, from $2.78 per MCF in the comparable period in 2023, resulting in a negative price variance of $60,337.

Current wording

The $286,048 (20%) increase in natural gas sales to $1,717,843 in the nine months ended September 30, 2024, from $1,431,795 in the comparable period in 2023 was the result of an increase in the volume sold, partially offset by a decrease in the average price per thousand cubic feet ("MCF"). The volume of natural gas sold increased 161,618 MCF to 684,177 MCF in the nine months ended September 30, 2024, from 522,559 MCF in the comparable period in 2023, resulting in a positive volume variance of $442,833. The average price per MCF decreased $0.23 to $2.51 per MCF in the nine months ended September 30, 2024, from $2.74 per MCF in the comparable period in 2023, resulting in a negative price variance of $156,785.

Previous wording

Sales of miscellaneous oil and natural gas products were $116,324 in the six months ended June 30, 2024, compared to $131,565 in the comparable period in 2023.

Current wording

Sales of miscellaneous oil and natural gas products were $264,400 in the nine months ended September 30, 2024, compared to $195,827 in the comparable period in 2023.

Previous wording

The Company had water well drilling revenues of $660,975 in the six months ended June 30, 2024, related to water well drilling through TWS, with $275,582 in the comparable period in 2023. The increase was due to the completion of a large commercial well project and several commercial and residential water wells completed in 2024. Water well drilling revenues ceased on the joint venture agreement termination date of April 19, 2024. See Note 5 for additional information on TWS.

Current wording

The Company had water well drilling revenues of $660,978 in the nine months ended September 30, 2024, related to water well drilling through TWS, with $385,006 in the comparable period in 2023. The increase was due to the completion of a large commercial well project and several commercial and residential water wells completed in 2024. Water well drilling revenues ceased on the joint venture agreement termination date of April 19, 2024. See Note 5 for additional information on TWS.

Previous wording

Operating Costs and Expenses. Operating costs and expenses increased $317,873 (13%) to $2,757,448 in the three months ended June 30, 2024, from $2,439,575 in the comparable period in 2023. The increase was the net result of an increase in production costs of $66,021; a decrease in exploration costs charged to expense of $30,345; a decrease in water well drilling costs of $116,408; an increase in DD&A of $465,388; and a decrease in G&A of $66,783.

Current wording

Operating Costs and Expenses. Operating costs and expenses decreased $184,352 (2%) to $8,037,067 in the nine months ended September 30, 2024, from $8,221,419 in the comparable period of 2023. The decrease was the net result of a decrease in production costs of $77,061; a decrease in exploration costs charged to expense of $308,910; a decrease in water well drilling costs of $277,486; an increase in DD&A of $25,844; and an increase in G&A of $453,261.

Previous wording

Production Costs. Production costs decreased $24,577 (1%) to $2,041,763 in the six months ended June 30, 2024, from $2,066,340 in the comparable period in 2023. Lease operating expenses decreased $208,079 (13%), primarily due to an increase in workovers in the comparable period in 2023. Hauling, compression, and other costs increased by $73,115 (38%). Gross production taxes increased $110,387 (36%) due to increased revenues from oil and natural gas sales in 2024.

Current wording

Production Costs. Production costs decreased $77,061 (2%) to $3,083,457 in the nine months ended September 30, 2024, from $3,160,518 in the comparable period in 2023. Lease operating expenses decreased $328,946 (14%), hauling, compression, and other costs increased by $216,766 (70%), and gross production taxes increased $35,119 (7%) due to increased revenues from oil and natural gas sales, offset by a previous period adjustment to GPT of $106,635.

Previous wording

Exploration Costs. Exploration costs decreased $245,494 (43%) to $328,075 in the six months ended June 30, 2024, from $573,569 in the comparable period in 2023, due to a decrease of $92,963 in geological and geophysical and other expenses, and $157,356 in dry hole and plugging costs, offset by an increase of $4,825 in leasehold impairments.

Current wording

Exploration Costs. Exploration costs decreased $308,910 (45%) to $370,810 in the nine months ended September 30, 2024, from $679,720 in the comparable period in 2023, due to a decrease of $92,963 in geological and geophysical and other expenses, and $222,212 in dry hole and plugging costs, partially offset by an increase of $6,265 in leasehold impairments.

Previous wording

Water Well Drilling Costs. Water well drilling costs increased $95,608 (30%) to $410,178 in the six months ended June 30, 2024, from $314,570 in the comparable period in 2023. These costs consist of contract labor, equipment rental and maintenance, fuel costs, and other operating supplies related to the drilling of water wells through TWS. Water well drilling costs ceased on the joint venture agreement termination date of April 19, 2024. See Note 5 for additional information on TWS.

Current wording

Water Well Drilling Costs. Water well drilling costs decreased $277,486 (40%) to $410,741 in the nine months ended September 30, 2024, from $688,227 in the comparable period in 2023. These costs consist of contract labor, equipment rental and maintenance, fuel costs, and other operating supplies related to the drilling of water wells through TWS. Water well drilling costs ceased on the joint venture agreement termination date of April 19, 2024. See Note 5 for additional information on TWS.

Previous wording

Depreciation, Depletion, Amortization and Valuation Provision (DD&A). DD&A increased $39,822 (3%) to $1,355,152 in the six months ended June 30, 2024, from $1,315,330 in the comparable period in 2023, due to a decrease in long-lived assets impairments of $443,456 offset by a $483,278 net increase in depletion, depreciation, and amortization due to an increase in completions and production.

Current wording

Depreciation, Depletion, Amortization and Valuation Provision (DD&A). DD&A increased $25,844 (1%) to $1,824,905 in the nine months ended September 30, 2024, from $1,799,061 in the comparable period in 2023, due to a decrease in long-lived assets impairments of $443,456 offset by a $469,251 net increase in depletion, depreciation, and amortization due to an increase in completions and production.

Previous wording

Equity Income in Investees. Equity income in investees decreased $1,275 (2%) to $57,358 in the six months ended June 30, 2024, from $58,633 in the comparable period in 2023. Income in the six months ended June 30, 2024, was made up of income of $11,929 in Broadway Sixty-Eight, LLC (“Broadway 68”), income of $32,126 in Broadway Seventy-Two, LLC (“Broadway 72”), income of $46,977 from Victorum BRH Investment, LLC, offset by losses of $11,599 in QSN Office Park, LLC (“QSN”), and $22,075 in Stott's Mill. See Note 4 to the accompanying financial statements for additional information on equity method investments.

Current wording

Equity Income in Investees. Equity income in investees decreased $16,723 (21%) to $64,691 in the nine months ended September 30, 2024, from $81,414 in the comparable period in 2023. Income in the nine months ended September 30, 2024, was made up of income of $8,661 in Broadway Sixty-Eight, LLC (“Broadway 68”), income of $48,569 in Broadway Seventy-Two, LLC (“Broadway 72”), income of $47,104 from Victorum BRH Investment, LLC, loss of $17,492 in QSN

Previous wording

Other Income, Net. Other income, net was $406,343 in the six months ended June 30, 2024, as compared $757,542 in the comparable period in 2023. See Note 3 to the accompanying consolidated financial statements for an analysis of the components of this line item.

Current wording

Other Income, Net. Other income, net was $839,718 in the nine months ended September 30, 2024, as compared $850,021 in the comparable period in 2023. See Note 3 to the accompanying consolidated financial statements for an analysis of the components of this line item.

Previous wording

Income Tax Provision. Income tax provision increased $487,486 (210%) to $719,251 in the six months ended June 30, 2024, from $231,765 in the comparable period in 2023. Of the 2024 tax provision, estimated current tax provision was $799 and estimated deferred tax provision was $718,452. Of the 2023 income tax provision, the estimated current tax benefit was $49,674 and the estimated deferred tax provision was $281,439. See Note 7 to the accompanying consolidated financial statements for additional information on income taxes.

Current wording

Income Tax Provision. Income tax provision increased $591,506 (156%) to $969,746 in the nine months ended September 30, 2024, from $378,240 in the comparable period in 2023. Of the 2024 tax provision, estimated current tax benefit was $68,639 and estimated deferred tax provision was $1,038,385. Of the 2023 income tax provision, the estimated current tax provision was $1,981 and the estimated deferred tax provision was $376,259. See Note 7 to the accompanying consolidated financial statements for additional information on income taxes.

Previous wording

Net income attributable to common stockholders increased $569,721 (117%) to $1,056,884 in the three months ended June 30, 2024, from $487,163 in the comparable period in 2023. The significant changes in the consolidated statements of income are discussed below. Net income per share attributable to common stockholders, basic increased $3.71 to $6.83 in the three months ended June 30, 2024, from $3.12 in the comparable period in 2023.

Current wording

Net income attributable to common stockholders increased $1,136,133 (182%) to $1,761,037 in the three months ended September 30, 2024, from $624,904 in the comparable period in 2023. The significant changes in the consolidated statements of income are discussed below. Net income per share attributable to common stockholders, basic increased $7.38 to $11.39 in the three months ended September 30, 2024, from $4.01 in the comparable period in 2023.

Previous wording

Operating Revenues. Revenues from oil and gas sales increased $1,129,169 (42%) to $3,836,624 in the three months ended June 30, 2024, from $2,707,455 in the comparable period in 2023. The increase is due to an increase in oil sales of $941,257, an increase in natural gas sales of $194,283, and a decrease in miscellaneous oil and gas product sales of $6,371.

Current wording

Operating Revenues. Revenues from oil and gas sales increased $866,311 (29%) to $3,874,796 in the three months ended September 30, 2024, from $3,008,485 in the comparable period in 2023. The increase is due to an increase in oil sales of $669,676, an increase in natural gas sales of $112,821, and an increase in miscellaneous oil and gas product sales of $83,814.

Previous wording

The $941,257 (43%) increase in oil sales to $3,136,719 in the three months ended June 30, 2024, from $2,195,462 in the comparable period in 2023 was the result of an increase in the volume sold and an increase in the average price per barrel (Bbl). The volume of oil sold increased 8,561 Bbls to 39,384 Bbls in the three months ended June 30, 2024, resulting in a positive volume variance of $609,800. The average price per Bbl increased $8.41 to $79.64 per Bbl in the three months ended June 30, 2024, from $71.23 per Bbl in the comparable period in 2023, resulting in a positive price variance of $331,457.

Current wording

The $669,676 (27%) increase in oil sales to $3,153,936 in the three months ended September 30, 2024, from $2,484,260 in the comparable period in 2023 was the result of an increase in the volume sold and an increase in the average price per barrel (Bbl). The volume of oil sold increased 3,875 Bbls to 35,274 Bbls in the three months ended September 30, 2024, resulting in a positive volume variance of $306,590. The average price per Bbl increased $10.29 to $89.41 per Bbl in the three months ended September 30, 2024, from $79.12 per Bbl in the comparable period in 2023, resulting in a positive price variance of $363,086.

Previous wording

The $194,283 (45%) increase in natural gas sales to $630,714 in the three months ended June 30, 2024, from $436,431 in the comparable period in 2023 was the result of an increase in the volume sold and an increase in the average price per MCF. The volume of natural gas sold increased 38,941 MCF to 227,257 MCF in the three months ended June 30, 2024, from 188,316 MCF in the comparable period in 2023, resulting in a positive volume variance of $90,342. The average price per MCF increased $0.46 to $2.78 per MCF in the three months ended June 30, 2024, from $2.32 per MCF in the comparable period in 2023, resulting in a positive price variance of $103,941.

Current wording

The $112,821 (25%) increase in natural gas sales to $572,784 in the three months ended September 30, 2024, from $459,963 in the comparable period in 2023 was the result of an increase in the volume sold and a decrease in the average price per MCF. The volume of natural gas sold increased 77,602 MCF to 249,993 MCF in the three months ended September 30, 2024, from 172,391 MCF in the comparable period in 2023, resulting in a positive volume variance of $207,197. The average price per MCF decreased $0.38 to $2.29 per MCF in the three months ended September 30, 2024, from $2.67 per MCF in the comparable period in 2023, resulting in a negative price variance of $94,376.

Previous wording

Equity Income in Investees. Equity income in investees increased $6,840 to income of $33,817 in the three months ended June 30, 2024, from $26,977 in the comparable period in 2023. See Note 4 to the accompanying financial statements for additional information on equity method investments.

Current wording

Equity Income in Investees. Equity income in investees decreased $15,448 to income of $7,333 in the three months ended September 30, 2024, from $22,781 in the comparable period in 2023. See Note 4 to the accompanying financial statements for additional information on equity method investments.

Previous wording

Other Income, Net. Other income, net decreased $1,977 in the three months ended June 30, 2024, to $186,732 from $188,709 in the comparable period in 2023. See Note 3 to the accompanying consolidated financial statements for an analysis of the components of this item.

Current wording

Other Income, Net. Other income, net increased $340,899 in the three months ended September 30, 2024, to $433,378 from $92,479 in the comparable period in 2023. See Note 3 to the accompanying consolidated financial statements for an analysis of the components of this item.

Previous wording

Income Tax Provision. Income tax provision increased $181,209 (184%) to $279,527 in the three months ended June 30, 2024, from $98,318 in the comparable period in 2023. Of the 2024 tax provision, estimated current tax provision was $308,070 and estimated deferred tax benefit was $28,543. Of the 2023 income tax provision, the estimated current tax benefit was $61,208 and the estimated deferred tax provision was $159,526. See discussions above in “Results of Operations” section and Note 7 to the accompanying consolidated financial statements for additional explanation of the changes in the provision for income taxes.

Current wording

Income Tax Provision/(Benefit). Income tax provision increased $104,020 (71%) to $250,495 in the three months ended September 30, 2024, from a provision of $146,475 in the comparable period in 2023. Of the 2024 tax provision, estimated current tax benefit was $69,438 and estimated deferred tax provision was $319,933. Of the 2023 income tax provision, the estimated current tax provision was $51,655 and the estimated deferred tax provision was $94,820. See discussions above in “Results of Operations” section and Note 7 to the accompanying consolidated financial statements for additional explanation of the changes in the provision for income taxes.