Cover
Cover - shares | 3 Months Ended | |
Mar. 31, 2020 | May 13, 2020 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2020 | |
Document Fiscal Period Focus | Q1 | |
Document Fiscal Year Focus | 2020 | |
Current Fiscal Year End Date | --12-31 | |
Entity Registrant Name | New Concept Energy, Inc. | |
Entity Central Index Key | 0000105744 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 5,131,934 |
CONSOLIDATED BALANCE SHEETS (Un
CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Current assets | ||
Cash and cash equivalents | $ 27 | $ 22 |
Accounts receivable from oil and gas sales | 56 | 73 |
Current portion note receivable (including $3,950 and $4,005 in 2020 and 2019 from related parties | 3,990 | 4,046 |
Other current assets | 38 | |
Total current assets | 4,111 | 4,141 |
Oil and natural gas properties (full cost accounting method) | ||
Proved developed and undeveloped oil and gas properties, net of depletion | 735 | 767 |
Property and equipment, net of depreciation | ||
Land, buildings and equipment - oil and gas operations | 665 | 668 |
Note Receivable | 204 | 214 |
Total assets | 5,715 | 5,790 |
Current liabilities | ||
Accounts payable - (including $243 and $180 due to related parties in 2020 and 2019) | 367 | 355 |
Accrued expenses | 55 | 35 |
Current portion of long term debt | 40 | 44 |
Total current liabilities | 462 | 434 |
Long-term debt | ||
Notes payable less current portion | 171 | 177 |
Asset retirement obligation | 2,770 | 2,770 |
Total liabilities | 3,403 | 3,381 |
Stockholders' equity | ||
Preferred stock, Series B | 1 | 1 |
Common stock, $.01 par value; authorized, 100,000,000 shares; issued and outstanding, 5,131,934 and 2,036,935 shares at March 31, 2020 and December 31, 2019 | 51 | 51 |
Additional paid-in capital | 63,579 | 63,579 |
Accumulated deficit | (61,319) | (61,222) |
Total shareholders' equity | 4,887 | 4,761 |
Total liabilities & equity | $ 5,715 | $ 5,790 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Statement of Financial Position [Abstract] | ||
Current portion note receivable | $ 3,950 | $ 4,005 |
Accounts payable due to related parties | $ 243 | $ 180 |
Common Stock, Par Value | $ 0.01 | $ 0.01 |
Common Stock, Shares Authorized | 100,000,000 | 100,000,000 |
Common Stock, Shares Issued | 5,131,934 | 2,036,935 |
Common Stock, Shares Outstanding | 5,131,934 | 2,036,935 |
CONSOLIDATED STATEMENT OF OPERA
CONSOLIDATED STATEMENT OF OPERATIONS (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Revenue | ||
Oil and gas operations, net of royalties | $ 125 | $ 180 |
Total Revenues | 125 | 180 |
Operating expenses | ||
Oil and gas operations | 178 | 179 |
Corporate general and administrative | 104 | 88 |
Total Operating Expenses | 282 | 267 |
Operating earnings (loss) | (157) | (87) |
Other income (expense) | ||
Interest income | 64 | 65 |
Interest expense | (4) | (5) |
Other income (expense), net | 153 | |
Expense | 60 | 213 |
Earnings (loss) applicable to common shares | $ (97) | $ 126 |
Net income (loss) per common share-basic and diluted | $ 0.01 | $ 0.02 |
Weighted average common and equivalent shares outstanding - basic | 5,132 | 5,132 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Cash flows from operating activities | ||
Net income (loss) | $ 126 | $ (97) |
Adjustments to reconcile net income to net cash provided by (used in) operating activities | ||
Depreciation, depletion and amortization | 37 | 23 |
Other current and non-current assets | 45 | (100) |
Accounts payable and other liabilities | 32 | 65 |
Net cash provided by (used) in operating activities | 17 | 114 |
Cash flows from financing activities | ||
Payment on notes payable | (12) | (15) |
Net cash provided by (used in) financing activities | (12) | (15) |
Net increase (decrease) in cash and cash equivalents | 5 | 99 |
Cash and cash equivalents at beginning of year | 22 | 361 |
Cash and cash equivalents at end of period | 27 | 460 |
Supplemental disclosures of cash flow information | ||
Cash paid for interest on notes payable | $ 3 | $ 5 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY - USD ($) $ in Thousands | Preferred Stock | Common Stock | Additional Paid-In Capital | Retained Earnings / Accumulated Deficit | Total |
Beginning Balance Preferred Stock, Shares at Dec. 31, 2018 | 1 | ||||
Beginning Balance Preferred Stock, Value at Dec. 31, 2018 | $ 1 | ||||
Beginning Balance Common Stock, Shares at Dec. 31, 2018 | 5,132 | ||||
Beginning Balance Common Stock, Value at Dec. 31, 2018 | $ 51 | $ 63,579 | $ (61,222) | $ 2,409 | |
Net income | (97) | (97) | |||
Ending Balance Preferred Stock, Shares at Mar. 31, 2019 | 1 | ||||
Ending Balance Preferred Stock, Value at Mar. 31, 2019 | $ 1 | ||||
Ending Balance Common Stock, Shares at Mar. 31, 2019 | 5,132 | ||||
Ending Balance Common Stock, Value at Mar. 31, 2019 | $ 51 | 63,579 | (61,319) | 2,312 | |
Beginning Balance Preferred Stock, Shares at Dec. 31, 2019 | 1 | ||||
Beginning Balance Preferred Stock, Value at Dec. 31, 2019 | $ 1 | ||||
Beginning Balance Common Stock, Shares at Dec. 31, 2019 | 5,132 | ||||
Beginning Balance Common Stock, Value at Dec. 31, 2019 | $ 51 | 63,579 | (58,870) | 4,761 | |
Net income | 126 | 126 | |||
Ending Balance Preferred Stock, Shares at Mar. 31, 2020 | 1 | ||||
Ending Balance Preferred Stock, Value at Mar. 31, 2020 | $ 1 | ||||
Ending Balance Common Stock, Shares at Mar. 31, 2020 | 5,132 | ||||
Ending Balance Common Stock, Value at Mar. 31, 2020 | $ 51 | $ 63,579 | $ (58,744) | $ 4,887 |
A. BASIS OF PRESENTATION
A. BASIS OF PRESENTATION | 3 Months Ended |
Mar. 31, 2020 | |
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. The Company’s ability to meet current cash obligations relies on cash received from current operations and the collection of notes receivable. The Company is evaluating business opportunities to provide both additional income and cash flow. 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, 2019. Operating results for the three month period ended March 31, 2020 are not necessarily indicative of the results that may be expected for any subsequent quarter or for the fiscal year ending December 31, 2020. |
B. NATURE OF OPERATIONS
B. NATURE OF OPERATIONS | 3 Months Ended |
Mar. 31, 2020 | |
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, LLC and Mountaineer State Operations, LLC. |
C. SUMMARY OF SIGNIFICANT ACCOU
C. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 3 Months Ended |
Mar. 31, 2020 | |
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, 2019. |
D. OIL AND GAS RESERVES
D. OIL AND GAS RESERVES | 3 Months Ended |
Mar. 31, 2020 | |
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 | 3 Months Ended |
Mar. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
CONTINGENCIES | NOTE E: CONTINGENCIES |
F. SUBSEQUENT EVENTS
F. SUBSEQUENT EVENTS | 3 Months Ended |
Mar. 31, 2020 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | NOTE F: SUBSEQUENT EVENTS The Company has evaluated subsequent events through May 13, 2020, the date the financial statements were available to be issued, and determined that there are none to be reported. |