DALLAS--(BUSINESS WIRE)--New Concept Energy, Inc. (NYSE American: GBR), ( the “Company” or “NCE”) a Dallas-based company, today reported net income for the three months ended September 30, 2020 of $2,182,000 or ($0.43) per share, compared to a net loss of $2,320,000 or ($0.45) per share for the three months ended September 30, 2019.
For the three months ended September 30, 2020, the Company recorded net revenue from continuing operations of $82,000 and net income from discontinued operations of $2,100,000. For the three months ended September 30, 2019, the Company recorded $22,000 from continuing operations and a loss of $2,342,000 from discontinued operations.
On August 31, 2020 the Company sold its entire oil and gas operation for $85,000 to an independent third party. In prior years the Company has accrued a liability of $2,745,000 to plug and abandon the existing wells. This obligation was assumed by the buyer. Upon the sale of the wells the Company recorded a gain of $2,138,000.
In September 2019 the Company wrote down the accounting value of its oil and gas reserves by $2,285,000.
For the three months ended September 30, 2020 the Company reported other income of $84,000 which represents a tax refund for taxes paid in prior years.
The Company continues to own approximately 190 acres of land located in Parkersburg West Virginia. Located on the land are four structures totaling approximately 53,000 square feet. Of this total area the main industrial / office building contains approximately 24,800 square feet of which approximately 16,000 square feet is leased at a rate of $101,000 per annum.
NEW CONCEPT ENERGY, INC. AND SUBSIDIARIES |
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CONSOLIDATED BALANCE SHEETS |
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(unaudited) |
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| (dollars in thousands, except par value amount) | ||||||
| September 30, 2020 |
December 31, 2019 |
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| (unaudited) | (audited) | |||||
| Assets | ||||||
| Current assets | ||||||
| Cash and cash equivalents | $ |
42 |
$ |
22 |
||
| Current portion notes receivable (including $3,578 and $4,005 due to related parties in 2020 and 2019) |
|
3,618 |
|
4,046 |
||
| Other current assets |
|
104 |
|
- |
||
| Total current assets |
|
3,764 |
|
4,068 |
||
| Property and equipment, net of depreciation | ||||||
| Land, buildings and equipment |
|
659 |
|
668 |
||
| Assets held for sale |
|
- |
|
840 |
||
| Other assets |
|
181 |
|
214 |
||
| Total assets | $ |
4,604 |
$ |
5,790 |
||
| NEW CONCEPT ENERGY, INC. AND SUBSIDIARIES | |||||||
| CONSOLIDATED BALANCE SHEETS - CONTINUED | |||||||
| (unaudited) | |||||||
| (dollars in thousands, except par value amount) | |||||||
| September 30, 2020 |
December 31, 2019 |
||||||
| Liabilities and stockholders' equity | |||||||
| Current liabilities | |||||||
| Accounts payable (includes $32 and $180 due to related parties in 2020 and 2019) | $ |
39 |
|
$ |
226 |
|
|
| Accrued expenses |
|
18 |
|
|
20 |
|
|
| Current portion of long term debt |
|
40 |
|
|
44 |
|
|
| Total current liabilities |
|
97 |
|
|
290 |
|
|
| Long-term debt | |||||||
| Notes payable less current portion |
|
150 |
|
|
177 |
|
|
| Liabilities of assets held for sale |
|
- |
|
|
2,914 |
|
|
| Total liabilities |
|
247 |
|
|
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 shares at September 30, 2020 and December 31, 2019 |
|
51 |
|
|
51 |
|
|
| Additional paid-in capital |
|
63,579 |
|
|
63,579 |
|
|
| Accumulated deficit |
|
(59,274 |
) |
|
(61,222 |
) |
|
| Total Shareholder Equity |
|
4,357 |
|
|
2,409 |
|
|
| Total liabilities & equity | $ |
4,604 |
|
$ |
5,790 |
|
|
| NEW CONCEPT ENERGY, INC AND SUBSIDIARIES | |||||||||||||||
| CONSOLIDATED STATEMENT OF OPERATIONS | |||||||||||||||
| (unaudited) | |||||||||||||||
| (amounts in thousands, except per share data) | |||||||||||||||
| For the Three Months ended September 30, | For the Nine Months ended September 30, | ||||||||||||||
|
2020 |
|
|
2019 |
|
|
2020 |
|
|
2019 |
|
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| Revenue | |||||||||||||||
| Rent | $ |
25 |
|
$ |
25 |
|
$ |
76 |
|
$ |
76 |
|
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| Operating expenses | |||||||||||||||
| Operating expenses |
|
15 |
|
|
17 |
|
|
46 |
|
|
53 |
|
|||
| Corporate general and administrative |
|
65 |
|
|
92 |
|
|
296 |
|
|
314 |
|
|||
| Total operating expenses |
|
80 |
|
|
109 |
|
|
342 |
|
|
367 |
|
|||
| Operating loss |
|
(55 |
) |
|
(84 |
) |
|
(266 |
) |
|
(291 |
) |
|||
| Other income (expense) | |||||||||||||||
| Interest income from related parties |
|
54 |
|
|
60 |
|
|
172 |
|
|
180 |
|
|||
| Interest Income from third parties |
|
3 |
|
|
3 |
|
|
12 |
|
|
12 |
|
|||
| Interest expense |
|
(3 |
) |
|
(3 |
) |
|
(9 |
) |
|
(12 |
) |
|||
| Income other |
|
83 |
|
|
46 |
|
|
83 |
|
|
199 |
|
|||
| Other income |
|
137 |
|
|
106 |
|
|
258 |
|
|
379 |
|
|||
| Net income (loss) from continuing operations |
|
82 |
|
|
22 |
|
|
(8 |
) |
|
88 |
|
|||
| Discontinued Operations | |||||||||||||||
| Gain (loss) from discontinued operations |
|
(38 |
) |
|
(2,342 |
) |
|
(182 |
) |
|
(2,423 |
) |
|||
| Gain (loss) from disposal of Oil & Gas Operations |
|
2,138 |
|
|
- |
|
|
2,138 |
|
|
- |
|
|||
|
2,100 |
|
|
(2,342 |
) |
|
1,956 |
|
|
(2,423 |
) |
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| Net income (loss) applicable to common shares |
|
2,182 |
|
|
(2,320 |
) |
|
1,948 |
|
|
(2,335 |
) |
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| Net income (loss) per common share-basic and diluted | $ |
0.43 |
|
$ |
(0.45 |
) |
$ |
0.38 |
|
$ |
(0.45 |
) |
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| Weighted average common and equivalent shares outstanding - basic |
|
5,132 |
|
|
5,132 |
|
|
5,132 |
|
|
5,132 |
|
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