RSRV 10-K & 10-Q changes, risk factors and insider trading

Equity securities decreasedincreased $162,872$2,015,221 (6%81%) to $4,516,415 in 2025 from $2,501,194 in 2024 from $2,664,066 in 2023.2024. The decreaseincrease is due to salespurchases in excess of purchasessales of $686,375,$385,677, offset byand a net increase in market value of $523,503.$1,629,544.

Refundable income taxes decreasedincreased $81,273$45,829 (26%19%) to $282,311 in 2025 from $236,482 in 2024 from $317,755 in 2023,2024, primarily resulting from increasedestimated taxable income that resulted in increases in thefederal tax provision.deposits.

Accounts receivable increased $407,824$220,086 (17%8%) to $2,994,573 in 2025 from $2,774,487 in 20242024, from $2,366,663 in 2023,primarily due to an increase in oilnew andwells gasdrilled salesin volumes,2025 partiallythat offsetwere in first production, but not yet paid by aoperators decreaseas inof prices.December 31, 2025.

Accounts payable decreasedincreased $17,614$647,711 (3%125%) to $1,167,893 in 2025 from $520,182 in 2024 from $537,796 in 2023,2024, primarily due to the timing of payableactivity processing.and invoices.

Net cash applied to investing activities increased $984,137$3,186,996 (16%46%) to $6,974,877$10,161,873 in 2024,2025, from net cash applied to investing activities of $5,990,740$6,974,877 in 2023.2024. The 20242025 amount was the result of net redemptions of available-for-sale debt securities of $2,220,901, net property purchases of $9,671,374,$10,009,712, cash appliedprovided toby equity method and other investments of $210,779$233,516 and net cash providedapplied byto equity securities of $686,375.$385,677.

Net cash applied to financing activities increaseddecreased $556,220$586,658 (33%26%) to $2,239,082$1,652,424 in 20242025 from net cash applied to financing activities of $1,682,862$2,239,082 in 2023.2024. The 20242025 amount was the result of $10 per share cash dividends paid on common stock of $1,546,874,$1,517,794, treasury stock purchases of $596,814,$55,265, payments of principal on the Grand Woods note payable of $142,136,$147,863, and capital contributions from Grand Woods non-controlling interests of $46,742.$68,498.

In 20242025 we had net income attributable to common stockholders of $2,029,278$4,903,715 compared to net lossincome of $55,648$2,029,278 in 2023.2024. Net income per share attributable to common stockholders, basic and diluted, was $13.18$32.32 in 2024,2025, an increase of $13.54$19.14 per share from net lossincome of $0.36$13.18 in 2023.2024.

Operating revenues increased $2,619,561$1,445,498 (20%9%) to $17,441,161 in 2025 from $15,995,663 in 2024 from $13,376,102 in 2023.2024. Oil and gas sales increased $2,649,488$1,560,419 (21%10%) to $16,699,954 in 2025 from $15,139,535 in 2024 from $12,490,047 in 2023.2024. Lease bonuses and other revenues increased $4,565$546,054 (2%280%) to $741,207 in 2025 from $195,153 in 2024 from $190,588 in 2023.2024. Water well drilling services decreased $34,492$660,975 (5%100%) to $0 in 2025 from $660,975 in 2024 from $695,467 in 2023, mainly2024, due to the termination of the TWS Agreement with TWS South on April 19,in 2024.

The $2,649,488$1,560,419 increase in oil and gas sales was the result of a $565,786$2,080,947 increase in gas sales, a $1,971,009$459,155 increasedecrease in oil sales and a $112,693$61,373 increasedecrease in miscellaneous oil and gas product sales.

The $565,786$2,080,947 (26%76%) increase in natural gas sales to $4,802,719 in 2025 from $2,721,772 in 2024 from $2,155,986 in 2023 was the cumulative result of an increase in gas sales volumes and aan decreaseincrease in the average price received per thousand cubic feet (MCF). The average price per MCF of natural gas sales decreasedincreased $0.08$0.84 per MCF to $3.56 per MCF in 2025 from $2.72 per MCF in 2024 from $2.80 per MCF in 2023,2024, resulting in a negativepositive gas price variance of $82,323.$1,131,551. A positive volume variance of $647,077$949,396 was the result of an increase in natural gas volumes sold of 230,730348,663 MCF to 1,348,157 MCF in 2025 from 999,494 MCF in 2024 from 768,764 MCF in 2023.2024.

As disclosed in Supplemental Schedule 1 of the Unaudited Supplemental Financial Information included in Item 8 below, working interests in natural gas extensions and discoveries were not adequate to replace working interest reserves produced in 20242025 orand 2023.2024.

The $1,971,009$459,155 (20%4%) increasedecrease in crude oil sales to $11,549,413 in 2025 from $12,008,568 in 2024 from $10,037,559 in 2023 was the cumulative result of a decrease in the average price per barrel (Bbl), andoffset by an increase in oil sales volumes. The average price received per Bbl of oil decreased $2.49$12.32 to $60.03 in 2025 from $72.35 in 2024 from $74.84 in 2023,2024, resulting in a negative oil price variance of $413,213.$2,369,412. A positive volume variance of $2,384,275$1,910,257 was the result of an increase in oil sales volumes of 31,85926,403 Bbls to 192,387 Bbls in 2025 from 165,984 Bbls in 2024 from 134,125 Bbls in 2023.2024.

As disclosed in Supplemental Schedule 1 of the Unaudited Supplemental Financial Information included below in Item 8, working interests in oil extensions and discoveries were not adequate to replace working interest reserves produced in 20242025 and were not in 2023.2024.

Production Costs. Production costs increased $198,786$157,917 (5%3%) to $4,740,087 in 2025 from $4,582,170 in 2024 from $4,383,384 in 2023.2024. The increase was the cumulative result of a $181,123$98,606 (6%3%) decreaseincrease in lease operating expense to $3,141,841 in 2025 from $3,043,235 in 2024 from $3,224,358 in 2023,2024, a $75,585$69,587 (10%9%) increase in gross production taxes to $883,604 in 2025 from $814,017 in 2024 from $738,432 in 2023,2024, and a $304,324$10,276 (72%1%) increasedecrease in processing deductions to $714,642 in 2025 from $724,918 in 2024 from $420,594 in 2023.2024.

General, Administrative and Other (G&A). G&A increaseddecreased $470,244$420,588 (18%14%) to $3,077,150$2,656,562 from $2,606,906$3,077,150 in 2023.2024. The increasedecrease was primarily due to increasesdecreases of $287,345$63,373 in human resource costs andcosts, bad debt expense of $465,977$435,977 related to TWS accounts receivable, and IT costs of $17,762 offset by decreasesincreases of $243,468$76,899 in consulting fees and $48,171$21,013 in legal and regulatory fees, legal fees and taxes, with a net increasedecrease in all other G&A accounts of $8,561.$1,388.

Equity income in investees was $59,922 in 2025 and $112,481 in 2024 and $107,865 in 2023.2024. The 20242025 net income consisted of Broadway Sixty-Eight, LLC (“Broadway 68”) income of $20,418,$33,933, Broadway Seventy-Two, LLC (“Broadway 72”) income of $38,678,$37,369, Victorum BRH Investment, LLC ("BRH") income of $79,019,$31,440, offset by the Stott's Mill ("Stott's Mill") loss of $23,675$40,071 and QSN Office Park, LLC (“QSN”) loss of $1,959.$2,749.

Net realized and unrealized gain on equity securities was $1,629,544 in 2025 and $375,461 in 20242024. In 2025, we had realized losses of $36,760 and $115,603unrealized ingains 2023.of $1,666,304. In 2024, we had realized gains of $66,168 and unrealized gains of $309,293. InUnrealized 2023,gains wein had2025 realizedwere lossesprimarily due to the increase in market value of $248,329one andstock, unrealizedChilean gainsCobalt Corporation of $363,932.$1,450,814.

Income from other investments decreasedincreased $307,801$366,762 (85%656%) to $422,699 in 2025 from $55,937 in 20242024, primarily resulting from $363,738$398,518 in 2023. Income in 2023 wasincome from athe sale of landall byremaining acreage in OKC Industrial Properties, LC.

Interest income decreased $238,967$189,188 (54%94%) to $12,089 in 2025 from $201,277 in 2024 from $440,244 in 2023 and dividend income increased $39,978$148,297 (69%151%) to $246,468 in 2025 from $98,171 in 2024 from $58,193 in 2023,2024, primarily due to oura usereclassification of fundsbank ininterest oilto anddividends gasto operationsalign andwith assettax acquisition.reporting.

In 2024, Loss on Deconsolidation of TWS South, LLC totaled $296,717 and impairmentImpairment of other investments totaledincreased $318,894.$208,617 to $527,511 in 2025 from $318,894 in 2024, primarily due to impairment of Cloudburst International, Inc. of $356,007 and one VCC investment of $81,504. For more information on the loss on deconsolidation,deconsolidation in 2024, please see Item 8, Note 8 – Non-Controlling Interests and Variable Interest Entities. For more information on impairment of other investments, please See Item 8, Note 7 – Investments and Related Commitments and Contingent Liabilities, Including Guaranties.

Income Tax Provision/(Benefit)

In 2025, we had an estimated income tax provision of $1,265,135 as the result of a deferred tax provision of $1,252,559 and a current tax provision of $12,576. In 2024, we had an estimated income tax provision of $499,399 as the result of a deferred tax provision of $434,446 and a current tax provision of $64,953. In 2023, we had an estimated income tax benefit of $171,401 as the result of a deferred tax benefit of $400,084 and a current tax provision of $228,683. See Item 8, Note 6 to the accompanying consolidated financial statements for an analysis of the various components of income taxes and a discussion of the federal tax rate change.

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 as required by law.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.

Please refer to the consolidatedConsolidated balanceBalance sheetsSheets and the consolidatedConsolidated statementsStatements of cashCash flowsFlows in this Form 10-Q to supplement the following discussion. In the first threesix months of 2026, wethe Company continued to fund ourits business activity using internal sources of cash. WeThe Company had net cash provided by operating activities of $2,731,218$6,924,551 in the threesix months ended MarchJune 31,30, 2026. OurThe Company had sales of equity securities of $121,277 and cash provided by property dispositions of $894,481, for total cash provided by investing activities for the three months ended March 31, 2026 was $117,342 and consisted of proceeds$1,015,758. fromThe disposalCompany of property, plant and equipment of $16,740 and sales of equity securities of $100,602. Our cash applied to investing activities for the three months ended March 31, 2026 was $2,120,856 and consisted ofutilized cash for the purchase of property, plant and equipmentproperty of $1,565,418, cash for$4,904,176, the purchase of equity securities of $202,038,$191,170, and purchase of investments of $449,776, for cash applied to investing activities of $5,545,122. The Company paid $1,515,944 in stockholder dividends, $1,600 for the purchase of equitytreasury methodstock, and other$76,260 investments of $353,400. Our cash applied to financing activities for the three months ended March 31, 2026 was $38,118, which consisted solely ofin payments on the Grand Woods note payable.payable, for total cash applied to financing activities of $1,593,804. Cash provided by financing activities included Grand Woods Class C non-controlling interest contributions of $19,009.$40,223. Cash and cash equivalents increased $708,595$841,606 (35%41%) to $2,759,925$2,892,936 at MarchJune 31,30, 2026, from $2,051,330 at December 31, 2025.

Equity securities decreased $300,432$79,005 (7%2%) to $4,215,983$4,437,410 as of MarchJune 31,30, 2026, from $4,516,415 at December 31, 2025. The decrease wasresulted thefrom result of $101,436$69,893 in net purchases and a $401,868$148,898 net decrease in market value.

Accounts receivable increased $223,366$258,801 (7%9%) to $3,217,939$3,253,374 as of MarchJune 31,30, 2026, from $2,994,573 at December 31, 2025, primarily due to substantialan increase in oil and gas receivables fromof new$320,005 wells.caused by an increase in the price and volume of expected oil production, offset by decreases in trade accounts receivable of $61,204.

Accounts payable and other current liabilities decreased $824,845$1,038,392 (70%88%) to $357,297$143,750 as of MarchJune 31,30, 2026, from $1,182,142 at December 31, 2025, primarily due to invoicethe timing on end of year activity thatand was paid subsequent to year end.invoices.

Discussion of Significant Changes in the Consolidated Statements of Cash Flows. Net cash provided by operating activities was $2,731,218$6,924,551 in the threesix months ended MarchJune 31,30, 2026, an increase of $824,328$1,912,272 (43%38%) fromin net cash provided by operations in the comparable period in 2025 of $1,906,890.$5,012,279. For more information see “Operating Revenues” and “Other Income/(Loss), Net” below.

Cash applied to the purchase of property, plant and equipment in the threesix months ended MarchJune 31,30, 2026, was $1,565,418,$4,904,176, a decrease of $771,730$1,186,487 (33%19%) from cash applied to the purchase of property, plant and equipment in the comparable period in 2025 of $2,337,148.$6,090,663. UnprovedOf oilthe $4,904,176 applied to the purchase of property, plant and gasequipment propertiesin accountthe six months ended June 30, 2026, approximately $728,429 was for approximatelythe 60%purchase of purchases,unproved withleasehold and minerals and approximately $4,175,747 was for the purchase of proved oil and gas properties making up approximately 40%.assets. Cash provided by the disposal of oil and gas properties was $16,740.$894,481, primarily resulting from the sale of unproved, non-producing leasehold and minerals in western Oklahoma.

Cash applied to equity method and other investments in the threesix months ended MarchJune 31,30, 2026, was $353,400,$449,776, ana increasedecrease of $247,125$219,109 (233%33%) from $106,275cash applied in the comparable period of 2025. Net purchases2025 of equity securities was $101,436 in the three months ended March 31, 2026, with net sales of $312,270 in the comparable period in 2025.$668,885.

Off-Balance Sheet Arrangements. WeThe areCompany is a guarantor of 20% of a $620,000 development loan that matures July 15, 2028, held by QSN Office Park, LLC. WeThe are committed to a $250,000 investment in VCC Venture Fund I, LP, of which $218,750 (87.50%)Company is invested at March 31, 2026. We are committed to a $400,000 investment in 14501 N Rockwell LLC,LLC ("Westcreek Ranch"), of which $116,570 (29%) is invested at MarchJune 31,30, 2026. The Company is committed to $1,168,010 for the purchase of oil and gas assets in White Whale LLC. For more information about these entities and the related off-balance sheet arrangements, see Note 5 and Note 6 to the accompanying consolidated financial statements.

Conclusion. Management is unaware of any additional material trends, demands, commitments, events or uncertainties, which would impact liquidity and capital resources to the extent that the discussion presented in the 2025 Form 10-K would not be representative of ourthe Company’s current position.

Results of Operations – ThreeSix Months Ended MarchJune 31,30, 2026

Net income decreasedattributable $771,667to common stockholders increased $581,700 (44%20%) to $996,418$3,556,416 in the threesix months ended MarchJune 31,30, 2026, from $1,768,085$2,974,716 in the comparable period in 2025. Net income per share attributable to common stockholders, basic, decreasedincreased $5.07$3.86 to $6.64$23.46 in the threesix months ended MarchJune 31,30, 2026, from $11.71$19.60 in the comparable period in 2025. A discussion of revenue from oil and natural gas sales and other significant line items in the consolidatedConsolidated statementsStatements of incomeIncome follows.

Operating Revenues. Revenues from oil and natural gas sales increased $1,691,590$3,564,223 (44%49%) to $5,543,055$10,891,971 in the threesix months ended MarchJune 31,30, 2026, from $3,851,465$7,327,748 in the comparable period in 2025. The increase is due to an increase in oil sales of $1,108,064,$2,883,507, an increase in natural gas sales of $628,289,$730,741, and a decrease in miscellaneous oil and natural gas product sales of $44,763.$50,025.

The $1,108,064$2,883,507 (42%57%) increase in oil sales to $3,750,765$7,973,114 in the threesix months ended MarchJune 31,30, 2026, from $2,642,701$5,089,607 in the comparable period in 2025 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 13,44615,889 Bbls to 53,35099,327 Bbls in the threesix months ended MarchJune 31,30, 2026, from 39,904 Bbls in the comparable period in 2025, resulting in a positive volume variance of $890,529.$969,229. The average price per Bbl increased $4.07$19.27 to $70.30$80.27 per Bbl in the threesix months ended MarchJune 31,30, 2026, from $66.23$61.00 per Bbl in the comparable period in 2025, resulting in a positive price variance of $217,535.$1,914,278.

The $628,289$730,741 (56%35%) increase in natural gas sales to $1,752,004$2,791,775 in the threesix months ended MarchJune 31,30, 2026, from $1,123,715$2,061,034 in the comparable period in 2025 was the result of an increase in the volume sold and an increase in the average price per thousand cubic feet ("MCF"). The volume of natural gas sold increased 120,078155,024 MCF to 384,014746,759 MCF in the threesix months ended MarchJune 31,30, 2026, from 263,936591,735 MCF in the comparable period in 2025, resulting in a positive volume variance of $511,532.$539,484. The average price per MCF increased $0.30$0.26 to $4.56$3.74 per MCF in the threesix months ended MarchJune 31,30, 2026, from $4.26$3.48 per MCF in the comparable period in 2025, resulting in a positive price variance of $116,757.$191,257.

For both oil and natural gas sales, the price change was mostly the result of a change in the spot market prices upon which most of ourthe Company’s oil and natural gas sales are based. These spot market prices have had significant fluctuations in the past and these fluctuations are expected to continue.

Sales of miscellaneous oil and natural gas products were $40,286$127,082 in the threesix months ended MarchJune 31,30, 2026, compared to $85,049$177,107 in the comparable period in 2025, primarily due to decreased product sales in assets held in Ohio.2025.

Operating Costs and Expenses. Operating costs and expenses increased $1,674,853$2,571,982 (73%53%) to $3,958,081$7,466,237 in the threesix months ended MarchJune 31,30, 2026, from $2,283,228$4,894,255 in the comparable period of 2025. See below for analysis of changes.

Production Costs. Production costs increased $183,475$395,585 (18%19%) to $1,231,836$2,489,465 in the threesix months ended MarchJune 31,30, 2026, from $1,048,361$2,093,880 in the comparable period in 2025. Lease operating expenses increased $73,786$167,085 (11%12%)., Gasgas deductions and other costs increased $19,968by $31,987 (14%11%). Grossand gross production taxes increased $89,721$196,515 (43%50%). due to increased revenues from oil and natural gas sales.

Exploration Costs. Exploration costs increased $370,106$233,820 (355%107%) to $474,385$452,520 in the threesix months ended MarchJune 31,30, 2026, from $104,279$218,700 in the comparable period in 2025, due to increases of $433,528 in dry hole and plugging costs, and $1,839 in geological and geophysical and other expenses,expenses of $5,102 and dry hole and plugging costs of $293,979, offset by a decrease in other costs of $65,261 in cancelled and expired leases.$65,261.

Depreciation, Depletion, Amortization and Valuation Provision (DD&A). DD&A increased $569,465$1,403,906 (63%78%) to $1,477,343$3,209,310 in the threesix months ended MarchJune 31,30, 2026, from $907,878$1,805,404 in the comparable period in 2025, primarilydue to an increase in long-lived assets impairments of $366,540, and a $1,086,017 net increase in depletion, depreciation, and amortization due to an increase in productioncompletions fromand newproduction, wells.offset by a decrease in leasehold impairment provision of $48,651.

Gain/(Loss)General, on Disposition of OilAdministrative and GasOther Properties.(G&A). WeG&A haddecreased a$21,998 loss(1.69%) onto the sale of unproved, non-producing leasehold of $97,206$1,282,256 in the threesix months ended MarchJune 31,30, 2026, withfrom a gain on sale of $492,282$1,304,254 in the the comparable period in 2025.

Equity Income in Investees. Equity income in investees increaseddecreased $5,563$5,308 (14%8%) to $44,743$57,145 in the threesix months ended MarchJune 31,30, 2026, from $39,180$62,453 in the comparable period in 2025. EquityIncome in the six months ended June 30, 2026, was made up of income was comprised of $23,339$16,386 in Broadway Sixty-Eight, LLC (“Broadway 68”), income of $16,441$26,021 in Broadway Seventy-Two, LLC (“Broadway 72”), and income of $8,137$15,539 infrom Victorum BRH InvestmentInvestment, LLC, offset by a loss of $3,174$801 in QSN Office Park, LLC (“QSN”). See Note 5 to the accompanying financial statements for additional information on equity method investments.

Other Income/(Loss), Net. WeOther hadLoss, anet losswas of $362,324$52,419 in the threesix months ended MarchJune 31,30, 20262026, andas compared $829,809 income of $267,703 in the comparable period in 2025. See Note 4 to the accompanying consolidated financial statements for an analysis of the components of this line item.

Income Tax Provision. Income tax provision decreased $281,368$222,515 (51%27%) to $266,168$593,301 in the threesix months ended MarchJune 31,30, 2026, from $547,536$815,816 in the comparable period in 2025. Of the 2026 tax provision, the estimated current tax benefit was $11,894$11,335 and the estimated deferred tax provision was $278,062.$604,636. Of the 2025 income tax provision, the estimated current tax provision was $12,234$2,602 and the estimated deferred tax provision was $535,302.$813,214.