UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

☒	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended ~~June 30~~March 31, ~~2019~~2020

☐	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

Commission File Number 1-31905

CKX Lands, Inc.

(Exact name of registrant as specified in its charter)

Louisiana		72-0144530
(State or other jurisdiction of incorporation or organization)		(I.R.S. Employer Identification No.)


127 W. Broad Street
Lake Charles, LA		70601
(Address of principal executive offices)		(Zip Code)

	(337) 493-2399
	(Registrant’s telephone number)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock with no par value	CKX	NYSE American

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date: 1,942,495 shares of common stock are issued and outstanding as of ~~August 2, 2019.~~May 7, 2020.

TABLE OF CONTENTS

		Page

PART I.	FINANCIAL INFORMATION

ITEM 1.	FINANCIAL STATEMENTS
	BALANCE SHEETS AS OF ~~JUNE 30, 2019~~MARCH 31, 2020 (UNAUDITED) AND DECEMBER 31, ~~2018~~ 2019
	STATEMENTS OF ~~INCOME~~OPERATIONS FOR THE THREE ~~AND SIX~~ MONTHS ENDED ~~JUNE 30,~~MARCH 31, 2020 AND 2019 ~~AND 2018~~ (UNAUDITED)
	STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY FOR THE THREE ~~AND SIX~~ MONTHS ENDED ~~JUNE 30,~~MARCH 31, 2020 AND 2019 ~~AND 2018~~ (UNAUDITED)
	STATEMENTS OF CASH FLOWS FOR THE ~~SIX~~THREE MONTHS ENDED ~~JUNE 30,~~MARCH 31, 2020 AND 2019 ~~AND 2018~~ (UNAUDITED)
	NOTES TO FINANCIAL STATEMENTS AS OF ~~JUNE 30, 2019~~MARCH 31, 2020 (UNAUDITED)	1

ITEM 2.	MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS	11 10

ITEM 3.	QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK	1614

ITEM 4.	CONTROLS AND PROCEDURES	1614

PART II.	OTHER INFORMATION

ITEM 1	LEGAL PROCEEDINGS	1614

ITEM 1A.	RISK FACTORS	1614

ITEM 2.	UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS	1615

ITEM 3.	DEFAULTS UPON SENIOR SECURITIES	1615

ITEM 4.	MINE SAFETY DISCLOSURES	1615

ITEM 5.	OTHER INFORMATION	1615

ITEM 6.	EXHIBITS	1615

SIGNATURES		1716

~~The accompanying notes are an integral part of these unaudited financial statements.~~

Six Months Ended

June 30,

2019

2018

CASH FLOWS FROM OPERATING ACTIVITIES

Net income
$ 128,992 $ 989,065
Less non-cash expenses included in net income:

Depreciation expense
1,011 467
Depletion expense
109 14,713
Gain on sale of land
(80,876 ) (881,654 )
Unrealized gain on equity investment in mutual funds
(246 ) -
Changes in operating assets and liabilities:

Increase (decrease) in current assets
(74,941 ) (58,503 )
Increase (decrease) in current liabilities
(25,304 ) (58,956 )
Net cash provided by (used in) operating activities
(51,255 ) 5,132

CASH FLOWS FROM INVESTING ACTIVITIES

Purchases of certificates of deposit
(979,000 ) (2,905,000 )
Proceeds from maturity of certificates of deposit
1,670,000 2,192,890
Purchases of mutual funds
(2,961 ) -
Costs of reforesting timber
(17,970 ) (40,134 )
Proceeds from the sale of fixed assets
109,235 996,494
Net cash provided by investing activities
779,304 244,250

CASH FLOWS FROM FINANCING ACTIVITIES

Dividends paid
- (233,099 )
Net cash used in financing activities
- (233,099 )

NET INCREASE IN CASH AND RESTRICTED CASH
728,049 16,283
Cash and restricted cash, beginning of the period
1,860,736 1,652,404
Cash and restricted cash, end of the period
$ 2,588,785 $ 1,668,687

SUPPLEMENTAL CASH FLOW INFORMATION

Cash paid for interest
$ - $ -
Cash paid for income taxes
$ 67,107 $ 308,387

	March 31,		December 31,
	2020		2019
	(unaudited)
ASSETS
Current assets:
Cash	$	2,867,156	$	3,280,289
Certificates of deposit		3,163,163		2,697,000
Equity investment in mutual funds		499,610		500,642
Accounts receivable		77,685		102,786
Prepaid expense and other assets		148,686		39,731
Total current assets		6,756,300		6,620,448
Property and equipment, net		9,241,556		9,242,082
Total assets	$	15,997,856	$	15,862,530

LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities:
Trade payables and accrued expenses		128,353		62,253
Unearned revenue		167,325		165,158
Income tax payable		8,677		-
Total current liabilities		304,355		227,411
Deferred income tax payable		187,664		187,664
Total liabilities		492,019		415,075

Stockholders' equity:
Common stock, 3,000,000 authorized, no par value, 1,942,495 issued and outstanding as of March 31, 2020 and December 31, 2019		59,335		59,335
Retained earnings		15,446,502		15,388,120
Total stockholders' equity		15,505,837		15,447,455
Total liabilities and stockholders' equity	$	15,997,856	$	15,862,530

The accompanying notes are an integral part of these unaudited financial statements.

Note 1: Significant Accounting Policies and Recent Accounting Pronouncements

Significant Accounting Policies

Basis of Presentation

The accompanying unaudited interim financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States of America, pursuant to the rules and regulations of the Securities and Exchange Commission. Certain information and footnote disclosures have been omitted pursuant to such rules and regulations. In the opinion of management, the accompanying financial statements include normal recurring adjustments that are necessary for a fair presentation of the results for the interim periods presented. These financial statements should be read in conjunction with our audited financial statements and notes thereto for the fiscal year ended December 31, ~~2018~~2019 included in our Annual Report on Form 10-K. The results of operations for the three ~~and six~~ months ended ~~June 30, 2019~~March 31, 2020 are not necessarily indicative of results to be expected for the full fiscal year or any other periods.

The preparation of the financial statements in conformity with U.S. generally accepted accounting principles requires management to make a number of estimates and judgments that affect the reported amounts of assets, liabilities, expenses, and related disclosures. Actual results may differ from these estimates.

Certain prior period amounts have been reclassified for consistency with the current period presentation. These reclassifications had no effect on the reported results of operations.

Risks and Uncertainties

In December 2019, a novel coronavirus disease (“COVID-19”) was reported and in January 2020, the World Health Organization (“WHO”) declared it a Public Health Emergency of International Concern. On February 28, 2020, the WHO raised its assessment of the COVID-19 threat from high to very high at a global level due to the continued increase in the number of cases and affected countries, and on March 11, 2020, the WHO characterized COVID-19 as a pandemic. While the Company did not incur significant disruptions to its operations during the first quarter of 2020 from COVID-19, it is unable at this time to predict the impact that COVID-19 will have on its business, financial position and operating results in future periods due to numerous uncertainties and is closely monitoring the impact of the pandemic on all aspects of its business.

Concentration of Credit Risk

The Company maintains its cash balances in seven financial institutions. The amount on deposit in each financial institution is insured by the Federal Deposit Insurance Corporation up to $250,000.

Cash Equivalents

Cash equivalents are highly liquid debt instruments with original maturities of three months or less when purchased.

~~Restricted Cash~~

~~Cash restricted from the sale of lands are held in a 1031 Trust account for a period of six months or less pursuant to Section 1031 of the Internal Revenue Code.~~

Certificate of Deposits

Certificates of deposit have maturities greater than three months when purchased, in amounts not greater than $250,000. All certificates of deposit are held until maturity and recorded at cost which approximates fair value. Certificates of deposit mature through ~~2020.~~2021. Certificates of deposit with a maturity of one year or less are classified as short-term. Certificates of deposit with a maturity of more than one year are classified as long-term.

Equity Investment

In January 2016, the FASB issued ASU 2016-01, “Financial Instruments – Overall (Subtopic 825-10): Recognition of Financial Assets and Financial Liabilities,” (ASU 2016-01), which makes targeted amendments to the guidance for recognition, measurement, presentation and disclosure of financial instruments. The guidance under ASU 2016-01 requires equity investments, other than equity method investments, to be measured at fair value with changes in fair value recognized in net income. As of ~~June 30, 2019,~~March 31, 2020, and December 31, ~~2018,~~2019, the Company classified ~~$248,032~~$499,610 and ~~$244,825,~~$500,642, respectively, of mutual funds as equity securities. The Company invests in ultra-short, high quality U.S. dollar money market funds, foreign funds, and obligations issued by the U.S. Government. The Company did not hold any equity investments until the fourth quarter of 2018, accordingly, there are no effects on the Company’s investments ~~under~~from the adoption of ASU 2016-01.

Accounts Receivable

The Company’s accounts receivable consist of incomes received after quarter-end for royalties produced prior to quarter-end. When there are royalties that have not been received at the time of the preparation of the financial statements for months in the prior quarter, the Company estimates the amount to be received based on the average of the most recent 12 month’s royalties that were received from that particular well. During the three months ended March 31, 2020, the Company revised its estimate for accrued royalty revenue by reducing it approximately 33% to reflect the decrease in oil prices in February and March of 2020. The Company does not maintain an allowance for doubtful accounts because other than the accrual for earned but not received royalties, it has no accounts receivable.

Property, Building and Equipment

Property, building, and equipment is stated at cost. Major additions are capitalized. Maintenance and repairs are charged to income as incurred. Depreciation is computed on the straight-line and accelerated methods over the following estimated useful lives of the assets:

Furniture and equipment (years)
5
-
7
Land improvements (years)

15

Furniture and equipment (in years)	5	-	7
Land improvements (in years)		15

Impairment of Long-lived Assets

Long-lived assets, such as land, timber and property, buildings, and equipment, are reviewed for impairment whenever events or changes in circumstances indicate the carrying amount of an asset may not be recoverable. If events or circumstances arise that require a long-lived asset to be tested for potential impairment, the Company first compares undiscounted cash flows expected to be generated by the asset to ~~its’~~its carrying value. If the carrying amount of the long-lived asset is not recoverable on an undiscounted cash flow basis, an impairment charge is recognized to the extent that the carrying value exceeds the fair value. Fair value may be determined through various valuation techniques including quoted market prices, third-party independent appraisals and discounted cash flow models. ~~The~~During the three months ended March 31, 2020, the Company ~~recorded~~performed a step zero impairment analysis and determined there were no qualitative factors that would indicate impairment. No impairment charges were recorded during the ~~six~~three months ended ~~June 30, 2019~~March 31, 2020 and ~~2018.~~2019.

Revenue Recognition

Effective January 1, 2018, we adopted ASU 2014-09, Revenue from Contracts with Customers (Topic 606). Under the new standard, we recognize revenues when the following criteria are met: (i) persuasive evidence of a contract with a customer exists, (ii) identifiable performance obligations under the contract exist, (iii) the transaction price is determinable for each performance obligation, (iv) the transaction price is allocated to each performance obligation, and (v) the performance obligations are satisfied. We derive a majority of our revenues from oil and gas royalties, timber sales, and surface leases. Surface leases are not within the scope of ASC 606. See Note 6 for more detailed information about the Company’s reportable segments.

Oil and Gas

Oil and gas revenue is generated through customer contracts, where we provide the customer access to a designated tract of land upon which the customer performs exploration, extraction, production and ultimate sale of the oil and gas. The Company receives royalties on all oil and gas produced by the customer. The performance obligation identified in oil and gas related contracts is the production of oil and gas on the designated tract of land. The performance obligation is satisfied at a point in time, which is when the customer produces oil and gas. The transaction price is comprised of fixed fees (royalties) on all oil and gas produced. The Company accrues monthly royalty revenues based upon estimates and adjusts to actual as the Company receives payments. Net accrued royalty income was ~~$81,201~~$71,162 and ~~$93,594~~$84,880 as of ~~June 30, 2019~~March 31, 2020 and December 31, ~~2018,~~2019, respectively. There are no capitalized contract costs associated with oil and gas contracts. The accounting of royalty income remains largely unchanged upon implementation of ASC 606.

Timber

Timber revenue is generated through customer contracts executed as a pay-as-cut arrangement, where the customer acquires the right to harvest specified timber on a designated tract for a set period of time at agreed-upon unit prices. The performance obligation identified in timber related contracts is the severing of a single tree.

We satisfy our performance obligation when timber is severed, at which time revenue is recognized. The transaction price for timber sales is determined using contractual rates applied to harvest volumes. The Company may receive a deposit at the time of entering into a stumpage agreement and this deposit is recorded in ~~trade payables~~unearned revenue and accrued expenses until earned. The Company held stumpage agreement deposits of ~~$54,300~~$87,300 at ~~June 30, 2019~~March 31, 2020 and December 31, ~~2018.~~2019. There are no capitalized contract costs associated with timber contracts. The accounting of timber revenue remains largely unchanged upon implementation of ASC 606.

Surface

Surface revenue is earned through annual leases for agricultural and hunting activities and the Company records revenues evenly over the term of these leases. Surface revenues from these sources are recurring on an annual basis. Unearned surface revenues ~~are recorded in trade payables~~ and accrued expenses were $80,025 and ~~were $55,682 and $58,893~~$77,857 at ~~June 30, 2019,~~March 31, 2020, and December 31, ~~2018,~~2019, respectively.

Surface revenue is also earned through right of way and related temporary workspace leases, both of which are not usual in occurrence and are not recurring sources of revenue. Generally, a right of way lease relates to either a utility or pipeline right of way that is a permanent servitude or exists for fixed periods of time greater than thirty years. The Company retains ownership of the land and the servitude is limited to the use of the surface. Revenue is recorded at the time of the agreement’s execution date. For income tax purposes, these types of agreements are treated as sales of business assets.

Other sources of surface revenue can be commercial activities leases and sales of surface minerals, such as dirt.

Basic and Diluted Earnings per share

Net earnings per share is provided in accordance with FASB ASC 260-10, "Earnings per Share". Basic earnings per share is computed by dividing earnings available to common stockholders by the weighted average number of common shares outstanding during the period. Diluted income per share gives effect to all dilutive potential common shares outstanding during the period. Dilutive income per share excludes all potential common shares if their effect is anti-dilutive. As of ~~June 30,~~March 31, 2020, and 2019 ~~and 2018~~ there were no dilutive shares outstanding.

Dividends

In determining whether a dividend will be declared, the Board of Directors will take into account the Company’s prior fiscal year’s cash flows from operations and the current economic conditions among other information deemed relevant. Dividends paid per common share are based on the weighted average number of shares of common stock outstanding during the period. ~~The Company declared a dividend of $233,099 during the six months ended June 30, 2018.~~ No dividends were declared during the ~~six~~three months ended ~~June 30,~~March 31, 2020 and 2019.

Pursuant to a dividend reversion clause in the Company’s Articles of Incorporation, dividends not claimed within one year after the dividend becomes payable will expire and revert in full ownership to the Company and the Company’s obligation to pay such dividend will cease. Any dividend reversions are recorded in equity upon receipt.

Recent Accounting Pronouncements

In February 2016, the FASB issued ASU 2016-02, which amended the accounting treatment for leases. Lessees (for capital and operating leases) and lessors (for sales-type leases, direct financing leases and operating leases) must apply a modified retrospective transition approach for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements. The modified retrospective approach would not require any transition accounting for leases that expired before the earliest comparative period presented. Lessees and lessors may not apply a full retrospective transition approach. In July 2018, the FASB issued ASU 2018-10 and ASU 2018-11. ASU 2018-10 provides certain areas for improvement in ASU 2016-02 and ASU 2018-11 provides an additional optional transition method by allowing entities to initially apply the new leasing standard at the adoption date and recognize a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. The new leasing standard is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. The Company adopted this standard as of January 1, 2019. The Company reviewed its service agreements and other arrangements and evaluated whether they met the definition of a lease under ASU 2016-02. The Company determined that the adoption of this standard ~~would have~~had no impact on its financial statements.

There are various other updates recently issued, most of which represented technical corrections to the accounting literature or application to specific industries and are not expected to have a material impact on the Company’s financial position, results of operations or cash flows.

Note 4:3: Fair Value of Financial Instruments

ASC 820 Fair Value Measurements and Disclosures (“ASC 820”), defines fair value, establishes a framework for measuring fair value and enhances disclosures about fair value measurements. It defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. ASC 820 also establishes a fair value hierarchy which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The standard describes three levels of inputs that may be used to measure fair value:

Level 1: Observable inputs such as quoted prices (unadjusted) in active markets for identical assets or liabilities.

Level 2: Inputs other than quoted prices that are observable for the asset or liability, either directly or indirectly. These include quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets or liabilities that are not active; and model-driven valuations whose inputs are observable or whose significant value drivers are observable. Valuations may be obtained from, or corroborated by, third-party pricing services.

Level 3: Unobservable inputs to measure fair value of assets and liabilities for which there is little, if any market activity at the measurement date, using reasonable inputs and assumptions based upon the best information at the time, to the extent that inputs are available without undue cost and effort.

The following methods and assumptions were used to estimate the fair value of each class of financial instruments for which it was practical to estimate that value:

Class	Methods and/or Assumptions

Cash and cash equivalents:	Carrying value approximates fair value due to its readily convertible characteristic.

Certificate of Deposit:	Held until maturity and recorded at amortized cost which approximates fair value.

Equity Investment in mutual funds:	Carrying value adjusted to and presented at fair market value.

The estimated fair value of the Company's financial instruments are as follows:

			June 30, 2019				December 31, 2018						March 31, 2020				December 31, 2019
Financial Assets:	Level		Carrying Value		Fair Value		Carrying Value		Fair Value		Level		Carrying Value		Fair Value		Carrying Value		Fair Value

Cash and cash equivalents		1	$	2,484,361	$	2,484,361	$	1,860,736	$	1,860,736		1	$	2,867,156	$	2,867,156	$	3,280,289	$	3,280,289
Certificate of deposit - short term		1		3,164,000		3,164,000		3,370,000		3,370,000		1		3,163,163		3,163,163		2,697,000		2,697,000
Certificate of deposit - long term		1		240,000		240,000		725,000		725,000
Equity investment in mutual funds		1		247,793		248,032		244,832		244,825		1		502,387		499,610		500,410		500,642
Total			$	6,136,154	$	6,136,393	$	6,200,568	$	6,200,561			$	6,532,706	$	6,529,929	$	6,477,699	$	6,477,931

During the ~~six~~three months ended ~~June 30,~~March 31, 2020 and 2019, ~~and 2018,~~ the Company had a gain on sale of land of ~~$80,876~~$33,107 and ~~$881,654,~~$75,926, respectively. ~~For the six months ended June 30, 2018, $767,147 of the gain represented gain on the sale of an undivided 1/6~~^th~~ownership interest in land.~~

Depreciation expense was ~~$1,011~~$234 and ~~$467~~$507 for the ~~six~~three months ended ~~June 30,~~March 31, 2020 and 2019, ~~and 2018,~~ respectively.

Depletion expense was ~~$109~~$134 and ~~$14,713~~$109 for the ~~six~~three months ended ~~June 30,~~March 31, 2020 and 2019, ~~and 2018,~~ respectively.

There are no intersegment sales reported in the accompanying income statements. The accounting policies of the segments are the same as those described in the summary of significant accounting policies in the Company’s Form 10-K for the year ended December 31, ~~2018.~~2019. The Company evaluates performance based on income or loss from operations before income taxes excluding any nonrecurring gains and ~~losses on securities held available-for-sale.~~losses. Income before income tax represents net revenues less costs and expenses less other income and expenses of a general corporate nature. Identifiable assets by segment are those assets used solely in the Company's operations within that segment.

ITEM 2. MANAGEMENT DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

The following discussion and analysis of our financial condition and results of operations should be read in conjunction with our unaudited financial statements and related notes included in this Quarterly Report on Form 10-Q and the audited financial statements and notes thereto as of and for the year ended December 31, ~~2018~~2019 and the related Management’s Discussion and Analysis of Financial Condition and Results of Operations, both of which are contained in our Annual Report on Form 10-K for the fiscal year ended December 31, ~~2018,~~2019, filed on March ~~21, 2019.~~13, 2020.

This Management’s Discussion and Analysis includes a number of forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”) that reflect our current views with respect to future events and financial performance. Forward-looking statements are often identified by words like “believe,” “expect,” “plan,” “estimate,” “anticipate,” “intend,” “project,” “will,” “predicts,” “seeks,” “may,” “would,” “could,” “potential,” “continue,” “ongoing,” “should” and similar expressions, or words which, by their nature, refer to future events. You should not place undue certainty on these forward-looking statements, which apply only as of the date of this Form 10-Q. These forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from historical results or from our predictions, including those risks described in our Annual Report on Form 10-K, this Form 10-Q and in our other public filings. We undertake no obligation to update or revise publicly any forward-looking statements, whether because of new information, future events, or otherwise.

CKX Lands, Inc., a Louisiana corporation, began operations in 1930 under the name Calcasieu Real Estate & Oil Co., Inc. It was originally organized as a spin-off by a bank operating in southwest Louisiana. The purpose of the spin-off was to form an entity to hold non-producing mineral interests which regulatory authorities required the bank to charge off. Over the years, as some of the mineral interests began producing, the Company used part of the proceeds to acquire land. In 1990, the Company made its largest acquisition when it was one of four purchasers who bought a fifty percent undivided interest in approximately 35,575 acres in southwest Louisiana.

Today the Company’s income is derived from mineral royalties, timber sales and surface payments from its lands. CKX receives income from royalty interests and mineral leases related to oil and gas production, timber sales, and surface rents. Although CKX is active in the management of its land and planting and harvesting its timber, CKX is passive in the production of income from oil and gas production in that CKX does not explore for oil and gas or operate wells. These oil and gas activities are performed by unrelated third parties.

CKX leases its property to oil and gas operators and collects income through its land ownership in the form of oil and gas royalties and lease rentals and geophysical revenues. The Company’s oil and gas income fluctuates as new oil and gas production is discovered on Company land and then ultimately depletes or becomes commercially uneconomical to produce. The volatility in the daily commodity pricing of a barrel of oil or a thousand cubic feet, or “MCF,” of gas will also cause fluctuations in the Company’s oil and gas income.

CKX has small royalty interests in 29 different producing oil and gas fields. The size of each royalty interest is determined by the Company’s net ownership in the acreage unit for the well. CKX’s royalty interests range from 0.0045% for the smallest to 7.62% for the largest. As the Company does not own or operate the wells, it does not have access to any reserve information. Eventually, the oil and gas reserves under the Company’s current land holdings will be depleted.

Timber income is derived from sales of timber on Company lands. The timber income will fluctuate depending on our ability to secure stumpage agreements in the regional markets, timber stand age, and/or stumpage commodity prices. Timber is a renewable resource that the Company actively manages.

Surface income is earned from various recurring and non-recurring sources. Recurring surface income is earned from lease arrangements for farming, recreational and commercial uses. Non-recurring surface income can include such activities as pipeline right of ways, and temporary worksite rentals.

In managing its lands, the Company relies on and has established relationships with real estate, forestry, environmental and agriculture consultants as well as attorneys with legal expertise in general corporate matters, real estate, and minerals.

The Company actively searches for additional real estate for purchase in Louisiana with a focus on southwest Louisiana. When evaluating unimproved real estate for purchase, the Company will consider numerous characteristics including but not limited to, timber fitness, agriculture fitness, future development opportunities and/or mineral potential. When evaluating improved real estate for purchase, the Company will consider characteristics including, but not limited to, geographic location, quality of existing revenue streams, and/or quality of the improvements.

In the first quarter of 2019, the Company began developing several ranchette-style subdivisions on certain of its lands in Calcasieu and Beauregard Parishes using existing road rights of way. The Company has identified demand in those areas for ranchette-style lots, which consist of more than three acres each, and the Board of Directors and management believe this project will allow the Company to realize a return on its investment in the applicable lands after payment of expenses. The Company has completed and recorded plats for two subdivisions and expects to complete a third subdivision during the third quarter of 2020. The three subdivisions are located on approximately 415 acres in Calcasieu Parish and approximately 160 acres in Beauregard Parish, and contain an aggregate of 39 lots. As of the date of this report, the Company has closed on the sale of two of the 39 lots, has one sale pending, and it is actively marketing the remaining lots.

The Company is working to identify additional undeveloped acres owned by the Company in Southwest Louisiana that would likewise be suitable for residential subdivisions.

The Company’s results of operations for the three months ended March 31, 2020 were driven primarily by an increase in oil revenues from the first quarter of 2019 due to an over 240% increase in barrels of oil produced and a slightly higher average sale price per barrel, offset by higher general and administrative expenses and a lower gain on the sale of land. The lower gain on sale of land in the in the first quarter of 2020 is due to the variable nature of land sales. The increase in general and administrative expenses from the first quarter of 2019 was attributable to increased property management fees and auditing and accounting fees, offset by a decrease in director fees and travel expense.

Total revenues for the three months ended ~~June 30, 2019~~March 31, 2020 were ~~$216,808, a decrease~~$180,391, an increase of approximately ~~45%~~18% when compared with the same period in ~~2018.~~2019. Total revenue consists of oil and gas, timber, and surface revenues. Components of revenues for the three months ended ~~June 30, 2019~~March 31, 2020 as compared to ~~2018,~~2019, are as follows:

Oil and gas revenues were ~~66%~~64% and ~~41%~~61% of total revenues for the three months ended ~~June 30,~~March 31, 2020 and 2019, ~~and 2018,~~ respectively. A breakdown of oil and gas revenues for the three months ended ~~June 30, 2019~~March 31, 2020 as compared to the three months ended ~~June 30, 2018~~March 31, 2019 is as follows:

CKX received oil and/or gas revenues from 7877 and 79 wells during the three months ended ~~June 30,~~March 31, 2020 and 2019, ~~and 2018,~~ respectively.

The following schedule summarizes barrels and MCF produced and average price per barrel and per MCF for the three months ended ~~June 30, 2019~~March 31, 2020 and ~~2018:~~2019:

Oil revenues ~~decreased~~increased for the three months ended ~~June 30, 2019,~~March 31, 2020, as compared to the three months ended ~~June 30, 2018,~~March 31, 2019, by ~~$10,197.~~$58,226. Gas revenues decreased for the three months ended ~~June 30, 2019,~~March 31, 2020, as compared to the same period in ~~2018,~~2019, by ~~$11,218.~~$34,245. As indicated from the schedule above, the ~~decrease~~increase in oil revenues were due to ~~a decrease~~an increase in the net oil produced and an increase in the average oil sales price per ~~barrel, partially offset by an increase in the net oil produced.~~barrel. The decrease in gas revenues were due to a decrease in net gas produced and a decrease in the average price per MCF.

Lease and geophysical revenues ~~increased~~decreased for the three months ended ~~June 30, 2019,~~March 31, 2020, as compared to the three months ended ~~June 30, 2018,~~March 31, 2019, by ~~$3,720.~~$3,160. These revenues are dependent on oil and gas producers’ activities, are not predictable and can vary significantly from year to year.

Timber revenue was $0$7,888 and ~~$176,559~~$14,481 for the three months ended ~~June 30,~~March 31, 2020 and 2019, ~~and 2018,~~ respectively. The decrease in timber revenues was due to wet weather during the ~~second~~first quarter of fiscal ~~2019~~2020 that limited customers’ ability to harvest timber.

Surface revenues increased for the three months ended ~~June 30, 2019,~~March 31, 2020, as compared to the three months ended ~~June 30, 2018,~~March 31, 2019, by ~~$17,029.~~$12,687. This ~~is due to the receipt of lease bonuses and delay rentals. These amounts are non-recurring revenue recognized when received.~~

Total revenues for the six months ended June 30, 2019 were $370,283, a decrease of approximately 50% when compared with the same period in 2018. Components of revenues for the six months ended June 30, 2019 as compared to 2018, are as follows:

Oil and gas revenues were 63% and 38% of total revenues for the six months ended June 30, 2019 and 2018, respectively. A breakdown of oil and gas revenues for the six months ended June 30, 2019 as compared to the six months ended June 30, 2018 is as follows:

~~CKX received oil and/or gas revenues from 88 wells during the six months ended June 30, 2019 and 2018.~~

~~The following schedule summarizes barrels and MCF produced and average price per barrel and per MCF for the six months ended June 30, 2019 and 2018:~~

Oil revenues decreased for the six months ended June 30, 2019, as compared to the six months ended June 30, 2018, by $66,321. Gas revenues increased for the six months ended June 30, 2019, as compared to the same period in 2018, by $17,629. As indicated from the schedule above, the decrease in oil revenues was due to a decrease in the net oil produced and a decrease in the average oil sales price per barrel. The increase ~~in gas revenues was~~is due to an increase in the ~~net gas produced and an increase in the average~~ price per ~~MCF.~~

~~Lease and geophysical revenues increased~~acre charge for the six months ended June 30, 2019, as compared to the six months ended June 30, 2018, by $856. These revenues are dependent on oil and gas producers’ activities, are not predictable and can vary significantly from year to year.

Timber revenue was $14,481 and $355,008 for the six months ended June 30, 2019 and 2018, respectively. The decrease in timber revenues was due to wet weather during the first half of fiscal 2019 that limited customers’ ability to harvest timber.

Surface revenues increased for the six months ended June 30, 2019, as compared to the six months ended June 30, 2018, by $17,918. This is due to the receipt of lease bonuses and delay rentals. These amounts are non-recurring revenue recognized when received.leases.

Costs and Expenses – Three Months Ended ~~– Three and Six Months Ended June 30, 2019~~March 31, 2020

~~Oil and gas costs increased slightly for the three months ended June 30, 2019 as compared to the three months ended June 30, 2018 by $356.~~ Oil and gas costs decreased slightly for the ~~six~~three months ended ~~June 30, 2019~~March 31, 2020 as compared to the ~~six~~three months ended ~~June 30, 2018~~March 31, 2019 by ~~$1,776. These variances are due to the normal variations in year to year costs.~~$2,787.

Timber costs decreased for the three months ended ~~June 30, 2019~~March 31, 2020 as compared to the three months ended ~~June 30, 2018~~March 31, 2019 by ~~$14,097. Timber costs decreased for the six months ended June 30, 2019 as compared to the six months ended June 30, 2018 by $30,294.~~$1,946. This is primarily due to the decreased timber revenue occurring during the three ~~and six~~ months ended ~~June 30, 2019.~~March 31, 2020.

Surface costs decreased for the three months ended ~~June 30, 2019~~March 31, 2020 as compared to the three months ended ~~June 30, 2018~~March 31, 2019 by ~~$7,398. Surface costs decreased for the six months ended June 30, 2019 as compared to the six months ended June 30, 2018 by $13,810. This is primarily due to reduced maintenance expense.~~$578.

General and administrative expenses increased for the three months ended ~~June 30, 2019~~March 31, 2020 as compared to the three months ended ~~June 30, 2018~~March 31, 2019 by ~~$74,686. General and administrative expenses increased for the six months ended June 30, 2019 as compared to the six months ended June 30, 2018 by $62,160.~~$23,086. This is primarily due to increased ~~contract services,~~property management fees and auditing and accounting ~~SEC filing and legal~~ fees, offset by a decrease in ~~salaries.~~directors fees and travel expense.

Gain on sale of land and equipment was ~~$4,950~~$33,107 and ~~$3,334~~$75,926 for the three months ended ~~June 30,~~March 31, 2020 and 2019, ~~and 2018,~~ respectively. Gain on sale of land and equipment was $80,876 and $881,654 for the six months ended June 30, 2019 and 2018, respectively. For the six months ended June 30, 2018, $767,147 of the gain represented gain on the sale of an undivided 1/6^th ~~ownership interest in land.~~

Current assets totaled ~~$6,231,210~~$6,756,300 and current liabilities equaled ~~$191,511~~$304,355 at ~~June 30, 2019.~~March 31, 2020.

The Company ~~had~~entered into an unsecured revolving line of credit with Hancock Whitney ~~Bank.~~Bank on June 25, 2018. The line of credit permitted the Company to draw a maximum aggregate amount of $1,000,000. Borrowings under the line of credit bore interest at a rate of 4.25%. The line of credit expired, ~~on June 25, 2019~~ and ~~was~~the Company did not ~~extended. As of June 30, 2019, there was no outstanding balance under~~extend the line of ~~credit.~~credit as management believes it has sufficient cash on hand available to handle recurring costs.

In the opinion of management, cash and cash equivalents, and certificates of deposit are adequate for projected operations and possible land acquisitions.

Net cash provided by (used in) operating activities ~~changed from $5,132 to $(51,255)~~was $21,743 and ($40,010) for the ~~six~~three months ended ~~June 30,~~March 31, 2020 and March 31, 2019, ~~compared to the six months ended June 30, 2018,~~ respectively. The change was attributable primarily to the decrease in net income offset by the decrease on the gain on the sale of land.

Net cash provided by (used in) investing activities was ~~$779,304~~($434,876) and ~~$244,250~~$305,807 for the ~~six~~three months ended ~~June 30,~~March 31, 2020, and 2019, ~~and 2018,~~ respectively. For the ~~six~~three months ended ~~June 30,~~March 31, 2020, this primarily resulted from purchases of certificates of deposit of $1,210,163 and purchases of mutual funds of $1,978, offset by proceeds from maturity of certificates of deposit of $744,000 and the proceeds from the sale of fixed assets of $33,265. For the three months ended March 31, 2019, this primarily resulted from purchases of certificates of deposit of ~~$979,000,~~$489,000, purchases of mutual funds of ~~$2,961, costs~~$1,458 and purchases of ~~reforesting~~ timber of $17,970, offset by proceeds from maturity of certificates of deposit of ~~$1,670,000~~$710,000 and the proceeds from the ~~sale~~sales of fixed assets of $109,235. For the six months ended June 30, 2018, this resulted from purchases of certificates of deposit of $2,905,000 and purchases of fixed assets of $40,134, offset by proceeds from maturity of certificates of deposit of $2,192,890 and from the proceeds of sale of fixed assets of $996,494.

~~Net cash used in financing activities was $0 and $233,099 for the six months ended June 30, 2019, and 2018, respectively. For the six months ended June 30, 2018, this includes dividends paid.~~$104,235.

There were no changes in our significant accounting policies and estimates during the ~~six~~three months ended ~~June 30, 2019~~March 31, 2020 from those set forth in “Significant Accounting Policies and Estimates” in our Annual Report on Form 10-K for the year ended December 31, ~~2018 except for the adoption of ASU 2016-02 on January 1, 2019~~2019.

See Note 1, Basis of Presentation and Recent Accounting Pronouncements, to our condensed financial statements included in this report for information regarding recently issued accounting pronouncements that may impact our financial statements.

During the ~~six~~three months ended ~~June 30, 2019,~~March 31, 2020, we did not have any relationships with unconsolidated organizations or financial partnerships, such as structured finance or special purpose entities that would have been established for the purpose of facilitating off-balance sheet arrangements.

Pursuant to Rule 13a-15(b) and Rule 15d-15(b) under the Exchange Act, the Company’s principal executive and financial officer carried out an evaluation of the effectiveness of the Company’s disclosure controls and procedures (as defined under Rule 13a-15(e) or Rule 15d-15(e) under the Exchange Act) as of the end of the period covered by this Report. Disclosure controls and procedures mean controls and other procedures of an issuer that are designed to ensure that information required to be disclosed by the issuer in the reports that it files or submits under the Exchange Act is recorded, processed, summarized and reported, within the time periods specified in the SEC’s rules and forms. Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed by an issuer in the reports that it files or submits under the Exchange Act is accumulated and communicated to the issuer’s management, including its principal executive and principal financial officers, or persons performing similar functions, as appropriate to allow timely decisions regarding required disclosure. Based on its evaluation, management concluded that as of ~~June 30, 2019,~~March 31, 2020, the Company’s disclosure controls and procedures were ~~not effective due to the existence of material weaknesses in internal control over financial reporting, discussed more fully below.~~effective.

As disclosed in our Annual Report on Form 10-K for the year ended December 31, ~~2018,~~2019, our management concluded that, as of December 31, ~~2018,~~2019, the Company’s internal control over financial reporting was not effective due primarily to a lack of internal staffing resulting in a lack segregation of duties, and a lack of evidence of review and oversight of certain financial processes, including processes that have been outsourced to a third-party service organization. Management is currently evaluating the steps that would be necessary to eliminate these material weaknesses.

were effective. There were no changes in the Company’s internal control over financial reporting during the fiscal quarter ended ~~June 30, 2019~~March 31, 2020 that materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

In addition to the other information set forth in this quarterly report, you should carefully consider the risks discussed in our Annual Report on Form 10-K for the fiscal year ended December 31, 2019, including under the heading “Item 1A. Risk Factors,”which, along with risks described below, could materially affect the Company’s business, financial condition or results of operations in future periods. These are not the only risks facing the Company. Other risks and uncertainties not currently known to us or that we currently deem to be immaterial also may materially adversely affect the Company’s business, financial condition or results of operations in future periods.

The COVID-19 pandemic has created a global health crisis and an unprecedented suspension of commercial activity around the world, including in Louisiana, that may lead to a significant, worldwide recession. The effect of the pandemic is rapidly evolving, and its future consequences are highly uncertain, so we cannot predict how it may affect our future financial condition and results of operations.

The novel coronavirus, which emerged in China in late 2019, has caused a deadly pandemic that has spread to North America, including Louisiana. Government authorities around the world, including in the State of Louisiana, have implemented “stay-at-home” and other social distancing orders that have required many businesses, including some of our business partners and customers like timber mills who buy our timber, to close. This suspension in economic activity may in turn cause a worldwide recession, including in Louisiana where we operate. Although we have been able to continue operating, we cannot predict with any certainty how the pandemic could impact our operations in the future. Among other possible effects, the pandemic could materially and adversely affect us in the following ways:

The direct and indirect effects of the pandemic are extremely widespread and rapidly evolving. In addition, its future effects are highly uncertain. It is possible that the pandemic could affect our business in the future in ways that we do not or cannot now anticipate.

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

	Three Months Ended June 30,						Six Months Ended June 30,
	2019			2018			2019			2018

Revenues:
Oil and gas	$	143,036		$	160,731		$	233,932		$	281,768
Timber sales		-			176,559			14,481			355,008
Surface revenue		64,189			53,440			102,704			91,493
Surface revenue - related party		9,583			3,303			19,166			12,459
Total revenue		216,808			394,033			370,283			740,728
Costs, expenses and (gains):
Oil and gas costs		13,643			13,287			28,167			29,943
Timber costs		687			14,784			5,084			35,378
Surface costs		115			7,513			693			14,503
General and administrative expense		208,434			133,748			328,469			266,309
Depreciation expense		504			234			1,011			467
Gain on sale of land		(4,950	)		(3,334	)		(80,876	)		(881,654	)
Total costs, expenses and (gains)		218,433			166,232			282,548			(535,054	)
Income from operations		(1,625	)		227,801			87,735			1,275,782

Interest income		29,487			12,954			56,011			25,876
Income before income taxes		27,862			240,755			143,746			1,301,658
Federal and state income tax expense:
Current		4,591			89,051			14,754			312,593
Deferred		-			-			-			-
Total income taxes		4,591			89,051			14,754			312,593
Net income	$	23,271		$	151,704		$	128,992		$	989,065
Dividends paid		-			-			-			(233,099	)
Net income available to common shareholders	$	23,271		$	151,704		$	128,992		$	755,966

Per common stock, basic and diluted
Net income	$	0.01		$	0.08		$	0.07		$	0.51
Dividends	$	-		$	-		$	-		$	0.12

Weighted average shares outstanding, basic and diluted		1,942,495			1,942,495			1,942,495			1,942,495

	Three Months Ended March 31,
	2020			2019

Revenues:
Oil and gas	$	115,050		$	94,228
Timber sales		7,888			14,481
Surface revenue		47,870			35,183
Surface revenue - related party		9,583			9,583
Total revenue		180,391			153,475
Costs, expenses and (gains):
Oil and gas costs		11,737			14,524
Timber costs		2,451			4,397
Surface costs		-			578
General and administrative expense		143,121			120,035
Depreciation expense		234			507
Gain on sale of land		(33,107	)		(75,926	)
Total costs, expenses and (gains)		124,436			64,115
Income from operations		55,955			89,360

Interest income		17,875			26,524
Income before income taxes		73,830			115,884
Federal and state income tax expense:
Current		15,448			10,163
Deferred		-			-
Total income taxes		15,448			10,163
Net income	$	58,382		$	105,721
Dividends paid		-			-
Net income available to common shareholders	$	58,382		$	105,721

Per common stock, basic and diluted
Net income	$	0.03		$	0.05
Dividends	$	-		$	-

Weighted average shares outstanding, basic and diluted		1,942,495			1,942,495

	June 30,			December 31,			March 31,			December 31,
	2019			2018			2020			2019

Land	$	7,023,053		$	7,051,412		$	7,022,895		$	7,023,053
Timber		2,180,251			2,162,390			2,188,460			2,188,594
Building and equipment		108,602			108,602			108,602			108,602
		9,311,906			9,322,404			9,319,957			9,320,249
Accumulated depreciation		(77,427	)		(76,416	)		(78,401	)		(78,167	)
Total	$	9,234,479		$	9,245,988		$	9,241,556		$	9,242,082

	Three Months Ended						Six Months Ended
	June 30,						June 30,					Three Months Ended March 31,
	2019			2018			2019			2018		2020			2019
Revenues:
Oil and gas	$	143,036		$	160,731		$	233,932		$	281,768	$	115,050		$	94,228
Timber sales		-			176,559			14,481			355,008		7,888			14,481
Surface revenue		73,772			56,743			121,870			103,952		57,453			44,766
Total segment revenues		216,808			394,033			370,283			740,728		180,391			153,475

Cost and expenses:
Oil and gas costs		13,643			13,287			28,167			29,943		11,737			14,524
Timber costs		687			14,784			5,084			35,378		2,451			4,397
Surface costs		115			7,513			693			14,503		-			578
Total segment costs and expenses		14,445			35,584			33,944			79,824		14,188			19,499

Income from operations:
Oil and gas		129,393			147,444			205,765			251,825		103,313			79,704
Timber		(687	)		161,775			9,397			319,630		5,437			10,084
Surface		73,657			49,230			121,177			89,449		57,453			44,188
Total segment income from operations		202,363			358,449			336,339			660,904		166,203			133,976
Other income (expense) before income taxes		(174,501	)		(117,694	)		(192,593	)		640,754		(92,373	)		(18,092	)
Income before income taxes	$	27,862		$	240,755		$	143,746		$	1,301,658	$	73,830		$	115,884

	Six Months Ended		Year Ended		Three Months Ended March 31,		Year Ended December 31,
	June 30,		December 31,
	2019		2018		2019		2019
Identifiable Assets, net of accumulated depreciation
Timber	$	2,180,251	$	2,162,390	$	2,188,460	$	2,188,594
General corporate assets		13,525,438		13,439,611		13,809,396		13,673,936
Total		15,705,689		15,602,001		15,997,856		15,862,530

Capital expenditures:
Timber		17,970		45,067		-		26,815
Surface		-		4,900		-		-
General corporate assets		-		5,471		-		-
Total segment costs and expenses		17,970		55,438		-		26,815

Depreciation and depletion
Oil and gas		-		-		-		-
Timber		109		1,858		134		611
General corporate assets		1,011		2,027		234		1,751
Total	$	1,120	$	3,885	$	368	$	2,362

	June 30, 2019		December 31, 2018
	(unaudited)
ASSETS
Current assets:
Cash	$	2,484,361	$	1,860,736
Restricted cash		104,424		-
Certificates of deposit		3,164,000		3,370,000
Equity investment in mutual funds		248,032		244,825
Accounts receivable		81,201		118,463
Prepaid expense and other assets		149,192		36,989
Total current assets		6,231,210		5,631,013
Long-term certificate of deposit		240,000		725,000
Property and equipment, net		9,234,479		9,245,988
Total assets	$	15,705,689	$	15,602,001

LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities:
Trade payables and accrued expenses		191,511		205,161
Income tax payable		-		11,654
Total current liabilities		191,511		216,815
Deferred income tax payable		187,664		187,664
Total liabilities		379,175		404,479

Stockholders' equity:
Common stock, 3,000,000 authorized, no par value, 1,942,495 issued and outstanding as of June 30, 2019 and December 31, 2018		59,335		59,335
Retained earnings		15,267,179		15,138,187
Total stockholders' equity		15,326,514		15,197,522
Total liabilities and stockholders' equity	$	15,705,689	$	15,602,001

	Common Stock				Retained		Total
	Shares		Amount		Earnings		Equity
Balances, March 31, 2019		1,942,495	$	59,335	$	15,243,908	$	15,303,243
Net income		-		-		23,271		23,271
Balances, June 30, 2019 (unaudited)		1,942,495	$	59,335	$	15,267,179	$	15,326,514

Furniture and equipment (years)	5	-	7
Land improvements (years)		15

	Six Months Ended June 30,				Three Months Ended March 31,
Count	2019		2018		2020		2019
1	$	55,740	$	250,334	$	41,686	$	30,322
2		38,333		77,137		38,333		19,674
3		32,315		73,110		15,651		16,644
4		29,774		47,567		14,307		16,458
5		26,959		38,333		14,172		10,562
6		20,072		-

(1)	~~(1)~~ Before deduction of production costs and severance taxes
(2)	~~(2)~~ Excludes plant products

	●	We depend on third parties for the generation of revenues, such as exploration and production companies, land management companies, surface lessees and timber mills. If any of these businesses limit or suspend their operations due to the pandemic or its economic effects, our operations could be materially, adversely affected.

	3.2	Amendment to Articles of Incorporation of the Registrant (incorporated by reference to Exhibit 3.2 to Form 10-K (File No. 001-31905) for the year ended December 31, 2003 filed on March 19, 2004).

	3.3	Articles of Amendment to the Restated Articles of Incorporation of the Registrant (incorporated by reference to Exhibit 3.3 to Form 10-K (File No. 001-31905) for the year ended December 31, 2018 filed on March 21, 2019).

	3.4	Amended and Restated By-Laws of the Registrant (incorporated by reference to Exhibit ~~3.3~~3.1 to Form ~~10-Q~~8-K (File No. 001-31905) ~~for the quarterly period ended March 31, 2013~~ filed on ~~May 10, 2013)~~August 9, 2019).

	31*	Certification of Lee W. Boyer, President and Treasurer, pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

	32**	Certification of Lee W. Boyer, President and Treasurer, pursuant to 18 U.S.C. Section 1350 and Section 906 of the Sarbanes-Oxley Act of 2002.

	101.INS	XBRL Instance

CKX LANDS, INC. By: /s/ Lee W. Boyer
Lee W. Boyer
President and Treasurer
(Principal executive and financial officer)

	Three Months Ended
	June 30,
											Three Months Ended March 31,
	2019		2018		Change from Prior Year			Percent Change from Prior Year			2020		2019		Change from Prior Year			Percent Change from Prior Year
Oil	$	121,443	$	131,640	$	(10,197	)		(7.7	)%	$	96,225	$	37,999	$	58,226			153.2	%
Gas		16,927		28,145		(11,218	)		(39.9	)%		17,977		52,222		(34,245	)		(65.6	)%
Lease and geophysical		4,666		946		3,720			393.2	%		848		4,007		(3,159	)		(78.8	)%
Total revenues	$	143,036	$	160,731	$	(17,695	)		(11.0	)%	$	115,050	$	94,228	$	20,822			22.1	%

	Six Months Ended
	June 30,

	2019		2018		Change from Prior Year			Percent Change from Prior Year
Oil	$	159,442	$	225,763	$	(66,321	)		(29.4	)%
Gas		69,149		51,520		17,629			34.2	%
Lease and geophysical		5,341		4,485		856			19.1	%
Total revenues	$	233,932	$	281,768	$	(47,836	)		(17.0	)%

Large accelerated filer

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Non-accelerated filer

Smaller reporting company

Emerging growth company