DALLAS--(BUSINESS WIRE)--New Concept Energy, Inc. (NYSE American: GBR), (the “Company” or “NCE”) a Dallas based company, today reported Results of Operations for the fourth quarter and the full year ended December 31, 2020.
Discontinued Operations:
In August 2020 the Company sold its oil and gas operation and recorded a gain from the sale of $2.1 million. The sales price was $85,000 however the Company had previously established a reserve for plug and abandonment costs of $2 million. Upon the sale the Company was relieved of any plug and abandonment obligations.
For the full year ended December 31, 2020 the Company reported a net loss from discontinued operations of $170,000 as compared to net loss of $2.4 million for the same period ended December 31, 2019. Included in the loss in 2019 is an impairment loss of $2.3 million whereby the Company had reduced the recorded value of its oil and gas operation.
Continuing Operations:
During the three months ended December 31, 2020 the Company reported a net loss from continuing operations of $32,000 compared to a net loss of $17,000 for the same period ended December 31, 2019.
For the full year ended December 31, 2020 the Company reported a net loss from continuing operations of $52,000 as compared to net income of $60,000 for the same period ended December 31, 2019.
Revenues: Total revenues from rent for the leased property was $101,000 in 2020 and $98,000 in 2019.
Operating Expenses: Operating expenses for the real estate property was $72,000 in 2020 and $61,000 in 2019. General and administrative expenses were $396,000 in 2020 and 418,000 in 2019.
Interest Income: Interest Income was $242,000 in 2020 as compared to $257,000 in 2019. The decrease was due to the reduction in the principal balance outstanding due to payments received.
Other Income: Other income was $85,000 in 2020 which is an income tax refund for prior years. Other income was $199,000 in 2019 which is comprised of a gain on sale of equipment of $46,000 and the settlement of a legal claim of $153,000.
Discontinued Operations: During the first nine months of 2020 the Company recorded a net loss from its oil and gas operations of $170,000. In August 2020 the Company sold the oil and gas operation and recorded a gain of $2,138,000.
About New Concept Energy, Inc.
New Concept Energy, Inc. is a Dallas-based company which owns real estate in West Virginia. For more information, visit the Company’s website at www.newconceptenergy.com.
| NEW CONCEPT ENERGY, INC. AND SUBSIDIARIES | |||||
| CONSOLIDATED BALANCE SHEETS | |||||
| (amounts in thousands) | |||||
| December 31, | |||||
2020 |
2019 |
||||
| Assets | |||||
| Current assets | |||||
| Cash and cash equivalents | $ |
27 |
$ |
22 |
|
| Current portion note receivable (including $ $3,631 and $4,005 in 2020 and 2019 from related parties) |
|
3,683 |
|
4,046 |
|
| Other current assets |
|
92 |
|
- |
|
| Total current assets |
|
3,802 |
|
4,068 |
|
| Property and equipment, net of depreciation | |||||
| Land, buildings and equipment |
|
656 |
|
668 |
|
| Note Receivable |
|
153 |
|
214 |
|
| Assets held for sale |
|
- |
|
840 |
|
| Total assets | $ |
4,611 |
$ |
5,790 |
|
| NEW CONCEPT ENERGY, INC. AND SUBSIDIARIES | |||||||
| CONSOLIDATED BALANCE SHEETS - CONTINUED | |||||||
| (amounts in thousands, except share amounts) | |||||||
| December 31, | |||||||
2020 |
2019 |
||||||
| Liabilities and stockholders' equity | |||||||
| Current liabilities | |||||||
| Accounts payable - trade (including $55 and $180 in 2020 and 2019 due to related parties) | $ |
80 |
|
$ |
226 |
|
|
| Accrued expenses |
|
32 |
|
|
20 |
|
|
| Current portion of long term debt |
|
52 |
|
|
44 |
|
|
| Total current liabilities |
|
164 |
|
|
290 |
|
|
| Long-term debt | |||||||
| Notes payable less current portion |
|
122 |
|
|
177 |
|
|
| Liabilities of assets held for sale |
|
- |
|
|
2,914 |
|
|
| Total liabilities |
|
286 |
|
|
3,381 |
|
|
| Stockholders' equity | |||||||
| Series B convertible preferred stock, $10 par value, liquidation value | |||||||
| of $100 authorized 100 shares, issued and outstanding one share |
|
1 |
|
|
1 |
|
|
| Common stock, $.01 par value; authorized, 100,000,000 | |||||||
| shares; issued and outstanding, 5,131,934 shares | |||||||
| at December 31, 2020 and 2019 |
|
51 |
|
|
51 |
|
|
| Additional paid-in capital |
|
63,579 |
|
|
63,579 |
|
|
| Accumulated deficit |
|
(59,306 |
) |
|
(61,222 |
) |
|
|
4,325 |
|
|
2,409 |
|
||
| Total liabilities & stockholders' equity | $ |
4,611 |
|
$ |
5,790 |
|
|
| NEW CONCEPT ENERGY, INC. AND SUBSIDIARIES | |||||||||||
| CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||||||
| (amounts in thousands, except per share data) | |||||||||||
| Year Ended December 31, | |||||||||||
2020 |
2019 |
2018 |
|||||||||
| Revenue | |||||||||||
| Rent | $ |
101 |
|
$ |
98 |
|
$ |
123 |
|
||
|
101 |
|
|
98 |
|
|
123 |
|
|||
| Operating expenses | |||||||||||
| Operating Expenses |
|
72 |
|
|
61 |
|
|
59 |
|
||
| Corporate general and administrative |
|
396 |
|
|
418 |
|
|
359 |
|
||
|
468 |
|
|
479 |
|
|
418 |
|
|||
| Operating loss |
|
(367 |
) |
|
(381 |
) |
|
(295 |
) |
||
| Other income (expense) | |||||||||||
| Interest income (including $226 and $240 for the year ended 2020 and 2019 from related parties) |
|
242 |
|
|
257 |
|
|
37 |
|
||
| Interest expense |
|
(12 |
) |
|
(15 |
) |
|
(18 |
) |
||
| Other income (expense), net |
|
85 |
|
|
199 |
|
|
11 |
|
||
|
315 |
|
|
441 |
|
|
30 |
|
|||
| Net income (loss) from continuing operations |
|
(52 |
) |
|
60 |
|
|
(265 |
) |
||
| Net income (loss) from discontinued operations | |||||||||||
| Gain (loss) from discontinued operations |
|
(170 |
) |
|
(2,412 |
) |
|
(219 |
) |
||
| Gain from Disposal of oil and gas operations |
|
2,138 |
|
||||||||
|
1,968 |
|
|
(2,412 |
) |
|
(219 |
) |
|||
| Net income (loss) applicable to common shares | $ |
1,916 |
|
$ |
(2,352 |
) |
$ |
(484 |
) |
||
| Net income (loss) per common share-basic and diluted | $ |
0.37 |
|
$ |
(0.46 |
) |
$ |
(0.21 |
) |
||
| Weighted average common and equivalent shares outstanding - basic |
|
5,132 |
|
|
5,132 |
|
|
2,358 |
|
||
