Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2018 | Aug. 13, 2018 | |
Document and Entity Information: | ||
Entity Registrant Name | New Concept Energy, Inc. | |
Entity Trading Symbol | gbr | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2018 | |
Amendment Flag | false | |
Entity Central Index Key | 105,744 | |
Current Fiscal Year End Date | --12-31 | |
Entity Common Stock, Shares Outstanding | 2,131,935 | |
Entity Filer Category | Smaller Reporting Company | |
Entity Current Reporting Status | Yes | |
Entity Voluntary Filers | No | |
Entity Well-known Seasoned Issuer | No | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q2 | |
Small Business Entity | true |
CONSOLIDATED BALANCE SHEETS (Un
CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Current assets | ||
Cash and cash equivalents | $ 278 | $ 419 |
Accounts receivable from oil and gas sales | 45 | 67 |
Current portion note receivable | 47 | 36 |
Total current assets | 370 | 522 |
Oil and natural gas properties (full cost accounting method) | ||
Proved developed and undeveloped oil and gas properties, net of depletion | 2,620 | 2,721 |
Property and equipment, net of depreciation | ||
Land, buildings and equipment - oil and gas operations | 636 | 661 |
Other assets (including $124 due from related parties in 2015) | 268 | 301 |
Total assets | 3,894 | 4,205 |
Current liabilities | ||
Accounts payable - trade (including $277 and $412 due to related parties in 2018 and 2017) | 306 | 446 |
Accrued expenses | 32 | 29 |
Current portion of long term debt | 58 | 81 |
Total current liabilities | 396 | 556 |
Long-term debt | ||
Notes payable less current portion | 229 | 243 |
Asset retirement obligation | 2,770 | 2,770 |
Total liabilities | 3,395 | 3,569 |
Stockholders' equity | ||
Preferred stock, Series B | 1 | 1 |
Common stock, $.01 par value; authorized, 100,000,000 shares; issued and outstanding, 2,036,935 shares at March 31, 2018 and December 31, 2017 | 22 | 21 |
Additional paid-in capital | 59,170 | 59,000 |
Accumulated deficit | (58,694) | (58,386) |
Total Stockholder's equity | 499 | 636 |
Total liabilities & stockholders' equity | $ 3,894 | $ 4,205 |
CONSOLIDATED BALANCE SHEETS (U3
CONSOLIDATED BALANCE SHEETS (Unaudited (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Statement of Financial Position [Abstract] | ||
Due from related parties | $ 124 | $ 124 |
Accounts payable due to related parties | $ 277 | $ 412 |
Common Stock, Par Value | $ 0.01 | $ 0.01 |
Common Stock, Shares Authorized | 100,000,000 | 100,000,000 |
Common Stock, Shares Issued | 2,131,935 | 2,131,935 |
Common Stock, Shares Outstanding | 2,131,935 | 2,131,935 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATION (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Income Statement [Abstract] | ||||
Oil and gas operations, net of royalties | $ 173 | $ 243 | $ 377 | $ 438 |
Operating expenses | ||||
Oil & gas operations | 239 | 256 | 514 | 512 |
Corporate general and administrative | 108 | 122 | 183 | 222 |
Total Operating Expenses | 347 | 378 | 697 | 734 |
Operating earnings (loss) | (174) | (135) | (320) | (296) |
Other income (expense) | ||||
Interest income | 4 | 11 | 11 | 15 |
Interest expense | (5) | (6) | (11) | (13) |
Other income (expense), net | 1 | 6 | 12 | (2) |
Total Other income (expense) | 0 | 11 | 12 | 0 |
Loss from continuing operations | (174) | (124) | (308) | (296) |
Earnings (loss) from discontinued operations | 0 | (11) | 0 | 2 |
Net income (loss) applicable to common shares | $ (174) | $ (135) | $ (308) | $ (294) |
Net income (loss) per common share-basic and diluted | $ (0.08) | $ (0.07) | $ (0.14) | $ (0.15) |
Weighted average common and equivalent shares outstanding - basic | 2,132 | 1,947 | 2,132 | 1,947 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Statement of Cash Flows [Abstract] | ||
Net income (loss) | $ (308) | $ (294) |
Adjustments to reconcile net income to net cash provided by (used in) operating activities | ||
Depreciation, depletion and amortization | 128 | 227 |
Write-off of retirement center assets | 0 | 24 |
Changes in operating assets and liabilities | ||
Other current and non-current assets | 44 | 123 |
Accounts payable and other liabilities | (137) | 284 |
Net cash provided by (used) in operating activities | (273) | 364 |
Cash flows from investing activities | ||
Investment in undeveloped land | 0 | (10) |
Fixed asset additions | 0 | (2) |
Net cash provided by (used) in investing activities | 0 | (12) |
Cash flows from financing activities | ||
Payment on notes payable | (39) | (32) |
Sale of common stock | 171 | 0 |
Net cash provided by (used in) financing activities | 132 | (32) |
Net increase (decrease) in cash and cash equivalents | (141) | 320 |
Cash and cash equivalents at beginning of year | 419 | 113 |
Cash and cash equivalents at end of period | 278 | 433 |
Supplemental disclosures of cash flow information | ||
Cash paid for interest on notes payable: | 11 | 13 |
Cash paid for principal on notes payable | $ 39 | $ 32 |
A. BASIS OF PRESENTATION
A. BASIS OF PRESENTATION | 6 Months Ended |
Jun. 30, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
BASIS OF PRESENTATION | NOTE A: BASIS OF PRESENTATION The accompanying unaudited consolidated financial statements include the accounts of New Concept Energy, Inc. and its majority-owned subsidiaries (collectively, “NCE” or the “Company”). All significant intercompany transactions and accounts have been eliminated. Certain reclassifications have been made to the prior year revenue and operating expense amounts in the statement of operations to conform to the current year presentation. The unaudited financial statements included herein have been prepared by the Company without audit, pursuant to the rules and regulations of the Securities and Exchange Commission. The financial statements reflect all adjustments that are, in the opinion of management, necessary to fairly present such information. All such adjustments are of a normal recurring nature. Although the Company believes that the disclosures are adequate to make the information presented not misleading, certain information and footnote disclosures, including a description of significant accounting policies normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America, have been condensed or omitted pursuant to such rules and regulations. These financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ending December 31, 2017. Operating results for the three and six month periods ended June 30, 2018 are not necessarily indicative of the results that may be expected for any subsequent quarter or for the fiscal year ending December 31, 2018. |
B. NATURE OF OPERATIONS
B. NATURE OF OPERATIONS | 6 Months Ended |
Jun. 30, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
B. NATURE OF OPERATIONS | NOTE B: NATURE OF OPERATIONS The Company operates oil and gas wells and mineral leases in Athens and Meigs Counties in Ohio and in Calhoun, Jackson and Roane Counties in West Virginia through its wholly owned subsidiaries Mountaineer State Energy, Inc. and Mountaineer State Operations, LLC. |
C. SUMMARY OF SIGNIFICANT ACCOU
C. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 6 Months Ended |
Jun. 30, 2018 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE C: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES We consider accounting policies related to our estimates of depreciation amortization and depletion, segments, oil and gas properties, oil and gas reserves, gas gathering assets, office and field equipment, revenue recognition and gas imbalances, leases, revenue recognition for real estate operations, impairment, and sales of real estate as significant accounting policies. The policies include significant estimates made by management using information available at the time the estimates are made. However, these estimates could change materially if different information or assumptions were used. These policies are summarized in our Annual Report on Form 10-K for the year ended December 31, 2017. |
D. OIL AND GAS RESERVES
D. OIL AND GAS RESERVES | 6 Months Ended |
Jun. 30, 2018 | |
Extractive Industries [Abstract] | |
OIL AND GAS RESERVES | NOTE D: OIL AND GAS RESERVES The Company uses the full cost method of accounting for its investment in oil and natural gas properties. Under this method of accounting, all costs of acquisition, exploration and development of oil and natural gas properties (including such costs as leasehold acquisition costs, geological expenditures, dry hole costs, tangible and intangible development costs and direct internal costs) are capitalized as the cost of oil and natural gas properties when incurred. The full cost method requires the Company to calculate quarterly, by cost center, a “ceiling,” or limitation on the amount of properties that can be capitalized on the balance sheet. To the extent capitalized costs of oil and natural gas properties, less accumulated depletion and related deferred taxes exceed the sum of the discounted future net revenues of proved oil and natural gas reserves, the lower of cost or estimated fair value of unproved properties subject to amortization, the cost of properties not being amortized, and the related tax amounts, such excess capitalized costs are charged to expense. |
E. CONTINGENCIES
E. CONTINGENCIES | 6 Months Ended |
Jun. 30, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
CONTINGENCIES | NOTE E: CONTINGENCIES Carlton Litigation Since December 2006, Carlton Energy Group, LLC (“Carlton”), an individual, Eurenergy Resources Corporation (“Eurenergy”) and several other entities, including New Concept Energy, Inc., which was then known as CabelTel International Corporation (the “Company”), have been involved in contentious litigation alleging tortuous conduct, breach of contract and other matters and, as to the Company, that it was the alter ego of Eurenergy. The Carlton claims were based upon an alleged tortuous interference with a contract by the individual and Eurenergy related to the right to explore a coal bed methane concession in Bulgaria which had never (and has not to this day) produced any hydrocarbons. At no time during the pendency of this project or since did the Company or any of its officers or directors have any interest whatsoever in the success or failure of the so-called “Bulgaria Project.” However, in the litigation Carlton alleged that the Company was the alter ego of certain of the other defendants, including Eurenergy. Following a jury trial in 2009, the Trial Court (295 th During August 2017, the parties to the litigation reached an arrangement, the final terms of which will not be determined until the outcome of another appeal to the Supreme Court. Under the terms of the arrangement, the Company should have no financial responsibility to Carlton, nor should any potential final outcome materially adversely affect the Company, in management’s opinion. Other The Company has been named as a defendant in other lawsuits in the ordinary course of business. Management is of the opinion that these lawsuits will not have a material effect on the financial condition, results of operations or cash flows of the Company. |
F. NEWLY ISSUED ACCOUNTING STAN
F. NEWLY ISSUED ACCOUNTING STANDARDS | 6 Months Ended |
Jun. 30, 2018 | |
Accounting Changes and Error Corrections [Abstract] | |
F. NEWLY ISSUED ACCOUNTING STANDARDS | NOTE F: NEWLY ISSUED ACCOUNTING STANDARDS We have considered all other newly issued accounting guidance that is applicable to our operations and the preparation of our financial statements including that which we have not yet adopted. We do not believe that any such guidance will have a material effect on our financial position or results of operations |
G. SUBSEQUENT EVENTS
G. SUBSEQUENT EVENTS | 6 Months Ended |
Jun. 30, 2018 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | NOTE G: SUBSEQUENT EVENTS The Company has evaluated subsequent events through August 13, 2018, the date the financial statements were available to be issued, and determined that there are none to be reported. |