Barnwell Industries Inc. is facing serious financial difficulties, as highlighted in a recent letter from the Sherwood Group, a major shareholder holding approximately 29.90% of the company's shares. The letter criticizes the current leadership of Kinzler, Grossman, and Horowitz, accusing them of driving the company towards insolvency. The company recently reported significant losses, with $978,000 spent on legal fees in just one quarter, and a dwindling cash balance now at $1.4 million. Operational challenges persist, with declining oil and gas production leading to losses of $1.1 million and $2.3 million for the three- and six-month periods respectively. The management has warned of "substantial doubt" regarding Barnwell's ability to continue as a going concern, attributing this to avoidable proxy costs and oil prices. The Sherwood Group is calling for accountability and changes in leadership to prevent further decline.
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