Revenue Performance - Total revenues for the three months ended September 30, 2025, were $232,639, a decrease of approximately 35.8% compared to the same period in 2024[80]. - Oil and gas revenues for the three months ended September 30, 2025, were $47,135, down 35.7% from $73,340 in 2024[80]. - Timber sales revenue increased to $94,825 for the three months ended September 30, 2025, from $18,883 in 2024, representing a 402.2% increase[80]. - Total revenues for the nine months ended September 30, 2025, were $716,759, a decrease of approximately 46.5% compared to $1,340,550 in 2024[85]. - Oil and gas revenues for the nine months ended September 30, 2025, were $373,131, an increase of 17.7% from $316,986 in 2024[85]. - Timber revenue for the nine months ended September 30, 2025, was $94,825, up 348.2% from $21,158 in 2024[89]. Costs and Expenses - Timber costs decreased by $2,052 for the three months ended September 30, 2025, and by $6,127 for the nine months ended September 30, 2025, compared to the same periods in 2024, primarily due to decreased timber management costs[92]. - General and administrative expenses increased by $19,832 for the three months ended September 30, 2025, but decreased by $684,850 for the nine months ended September 30, 2025, primarily due to a decrease in professional expenses and salaries[93]. Strategic Initiatives - The company has initiated a formal process to evaluate strategic alternatives to enhance shareholder value, retaining a financial advisor for this purpose[69]. - The company's Board of Directors is evaluating strategic alternatives for growth, including land acquisitions and business combinations, to enhance shareholder value[97]. Asset and Liquidity Position - Current assets totaled $14,744,240 and current liabilities equaled $281,098 as of September 30, 2025, indicating strong liquidity[95]. - The company had no outstanding debt as of September 30, 2025, and management believes cash and cash equivalents are adequate for projected operations and possible land acquisitions[96]. Cash Flow Analysis - Net cash provided by operating activities increased to $336,296 for the nine months ended September 30, 2025, from $107,406 in 2024, attributed to increased net income and current liabilities[98]. - Net cash provided by investing activities was $4,241,631 for the nine months ended September 30, 2025, compared to net cash used of $4,126,604 in 2024, driven by the maturity of certificates of deposit[99]. - Net cash used in financing activities was $147,614 for the nine months ended September 30, 2025, down from $208,854 in 2024, primarily due to stock repurchases[100]. Land Transactions - An Agreement of Purchase and Sale was entered into for the sale of approximately 7,014 acres of land for $9.2 million, expected to close in Q4 2025[78]. - Gain on sale of land was $275,399 for the nine months ended September 30, 2025, compared to $140,582 for the same period in 2024, with significant sales occurring in Calcasieu parish[94]. Other Financial Information - Surface revenues decreased by $753,603 for the nine months ended September 30, 2025, primarily due to lower right of way income[90]. - The company received oil and gas revenues from 78 wells during the nine months ended September 30, 2025, compared to 64 wells in 2024[87]. - There were no off-balance sheet arrangements or special purpose entities during the nine months ended September 30, 2025[103].

[PART I - FINANCIAL INFORMATION](index=4&type=section&id=PART%20I%20-%20FINANCIAL%20INFORMATION) [ITEM 1. FINANCIAL STATEMENTS](index=4&type=section&id=ITEM%201.%20FINANCIAL%20STATEMENTS) This section presents CKX Lands, Inc.'s unaudited interim financial statements, including Balance Sheets, Statements of Operations, Equity, Cash Flows, and Notes, for periods ended June 30, 2025 [BALANCE SHEETS AS OF JUNE 30, 2025 AND DECEMBER 31, 2024 (UNAUDITED)](index=4&type=section&id=BALANCE%20SHEETS%20AS%20OF%20JUNE%2030%2C%202025%20AND%20DECEMBER%2031%2C%202024%20(UNAUDITED)) **Key Balance Sheet Data:** | Item | June 30, 2025 | December 31, 2024 | | :-------------------------- | :-------------- | :---------------- | | Cash and cash equivalents | $7,468,514 | $3,421,576 | | Certificates of deposit | $2,166,088 | $5,908,491 | | Total current assets | $9,941,535 | $9,579,388 | | Total assets | $18,886,761 | $18,847,237 | | Total current liabilities | $174,706 | $264,183 | | Total stockholders' equity | $18,712,055 | $18,583,054 | [STATEMENTS OF OPERATIONS FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2025 AND 2024 (UNAUDITED)](index=5&type=section&id=STATEMENTS%20OF%20OPERATIONS%20FOR%20THE%20THREE%20AND%20SIX%20MONTHS%20ENDED%20JUNE%2030%2C%202025%20AND%202024%20(UNAUDITED)) **Statements of Operations Summary:** | Metric | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | | :--------------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | | Total revenue | $135,936 | $1,027,434 | $484,119 | $1,169,283 | | Income from operations | $159,669 | $646,128 | $271,818 | $209,522 | | Net income | $161,042 | $565,278 | $276,615 | $163,949 | | Basic net income per share | $0.08 | $0.28 | $0.14 | $0.08 | | Diluted net income per share | $0.08 | $0.27 | $0.14 | $0.08 | - Total revenue decreased significantly for both the three-month (**-86.8%**) and six-month (**-58.6%**) periods ended June 30, 2025, compared to the prior year, primarily due to declines in surface and oil and gas revenues[12](index=12&type=chunk) - Net income for the six months ended June 30, 2025, increased by **68.7%** to **$276,615**, while net income for the three months decreased by **71.5%** to **$161,042**[12](index=12&type=chunk) [STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2025 AND 2024 (UNAUDITED)](index=6&type=section&id=STATEMENTS%20OF%20CHANGES%20IN%20STOCKHOLDERS'%20EQUITY%20FOR%20THE%20THREE%20AND%20SIX%20MONTHS%20ENDED%20JUNE%2030%2C%202025%20AND%202024%20(UNAUDITED)) **Stockholders' Equity Changes (Three Months Ended June 30, 2025):** | Item | Amount | | :-------------------------- | :------------- | | Balances, March 31, 2025 | $18,698,627 | | Repurchases of common stock | $(147,614) | | Net income | $161,042 | | Balances, June 30, 2025 | $18,712,055 | **Stockholders' Equity Changes (Six Months Ended June 30, 2025):** | Item | Amount | | :-------------------------- | :------------- | | Balances, December 31, 2024 | $18,583,054 | | Repurchases of common stock | $(147,614) | | Net income | $276,615 | | Balances, June 30, 2025 | $18,712,055 | [STATEMENTS OF CASH FLOWS FOR THE SIX MONTHS ENDED JUNE 30, 2025 AND 2024 (UNAUDITED)](index=8&type=section&id=STATEMENTS%20OF%20CASH%20FLOWS%20FOR%20THE%20SIX%20MONTHS%20ENDED%20JUNE%2030%2C%202025%20AND%202024%20(UNAUDITED)) **Cash Flow Summary (Six Months Ended June 30):** | Activity | 2025 | 2024 | | :----------------------------------- | :--------- | :--------- | | Net cash provided by operating activities | $94,026 | $353,909 | | Net cash provided by investing activities | $4,100,526 | $175,067 | | Net cash used in financing activities | $(147,614) | $(208,854) | | Net change in cash and cash equivalents | $4,046,938 | $320,122 | | Cash and cash equivalents, end of period | $7,468,514 | $7,866,811 | - Net cash provided by operating activities decreased by **73.5%** in 2025, while net cash provided by investing activities increased significantly due to higher maturities of certificates of deposit[18](index=18&type=chunk) [NOTES TO FINANCIAL STATEMENTS AS OF JUNE 30, 2025 (UNAUDITED)](index=9&type=section&id=NOTES%20TO%20FINANCIAL%20STATEMENTS%20AS%20OF%20JUNE%2030%2C%202025%20(UNAUDITED)) [Note 1: Significant Accounting Policies and Recent Accounting Pronouncements](index=9&type=section&id=Note%201%3A%20Significant%20Accounting%20Policies%20and%20Recent%20Accounting%20Pronouncements) - No impairment charges were recorded for long-lived assets during the six months ended June 30, 2025 and 2024[24](index=24&type=chunk) - No further share-based awards were made under the 2021 Stock Incentive Plan during the six months ended June 30, 2025, and no unvested awards remain as of June 30, 2025[26](index=26&type=chunk) - No dividends were declared during the six months ended June 30, 2025 and 2024[29](index=29&type=chunk) - The company is evaluating the impact of recently issued FASB ASUs: 2023-09 (Income Taxes, effective after Dec 15, 2024), 2024-02 (Codification Improvements, effective after Dec 15, 2024), and 2024-03 (Expense Disaggregation, effective after Dec 15, 2026)[31](index=31&type=chunk)[32](index=32&type=chunk)[33](index=33&type=chunk) [Note 2: Fair Value of Financial Instruments](index=10&type=section&id=Note%202%3A%20Fair%20Value%20of%20Financial%20Instruments) - Fair value measurements are categorized into a three-level hierarchy: Level 1 (quoted prices in active markets), Level 2 (observable inputs other than quoted prices), and Level 3 (unobservable inputs)[34](index=34&type=chunk)[35](index=35&type=chunk)[36](index=36&type=chunk) **Fair Value of Financial Assets (June 30, 2025):** | Financial Assets | Level | Carrying Value | Fair Value | | :----------------------- | :---- | :------------- | :----------- | | Cash and cash equivalents | 2 | $7,468,514 | $7,468,514 | | Certificates of deposit | 2 | $2,166,088 | $2,166,088 | | Total | | $9,634,602 | $9,634,602 | **Fair Value of Financial Assets (December 31, 2024):** | Financial Assets | Level | Carrying Value | Fair Value | | :----------------------- | :---- | :------------- | :----------- | | Cash and cash equivalents | 2 | $3,421,576 | $3,421,576 | | Certificates of deposit | 2 | $5,908,491 | $5,829,337 | | Total | | $9,330,067 | $9,250,913 | [Note 3: Property and Equipment](index=12&type=section&id=Note%203%3A%20Property%20and%20Equipment) **Property and Equipment, Net:** | Item | June 30, 2025 | December 31, 2024 | | :---------------------- | :-------------- | :---------------- | | Land | $6,591,852 | $6,760,765 | | Timber | $2,250,525 | $2,250,525 | | Equipment | $120,873 | $120,873 | | Accumulated depreciation | $(97,744) | $(96,058) | | Total | $8,865,506 | $9,036,105 | - The company recognized a gain on sale of land of **$189,210** for the six months ended June 30, 2025, compared to **$140,582** in the prior year[40](index=40&type=chunk) - Depreciation expense was **$1,687** for the six months ended June 30, 2025, a decrease from **$2,130** in the prior year[41](index=41&type=chunk) [Note 4: Segment Reporting](index=12&type=section&id=Note%204%3A%20Segment%20Reporting) - The company operates in three principal segments: oil and gas, timber, and surface, with performance evaluated based on gross profit[43](index=43&type=chunk)[44](index=44&type=chunk) **Segment Revenues (Three Months Ended June 30):** | Segment | 2025 | 2024 | | :-------- | :----- | :------- | | Oil and Gas | $57,488 | $161,148 | | Timber | $0 | $0 | | Surface | $78,448 | $866,286 | | Consolidated | $135,936 | $1,027,434 | **Segment Revenues (Six Months Ended June 30):** | Segment | 2025 | 2024 | | :-------- | :----- | :------- | | Oil and Gas | $325,996 | $243,648 | | Timber | $0 | $2,275 | | Surface | $158,123 | $923,360 | | Consolidated | $484,119 | $1,169,283 | [Note 5: Income Taxes](index=14&type=section&id=Note%205%3A%20Income%20Taxes) - The company believes all income tax filing positions are highly certain and does not require a reserve for uncertain tax positions[47](index=47&type=chunk) [Note 6: Related Party Transactions](index=14&type=section&id=Note%206%3A%20Related%20Party%20Transactions) - The company has a 25-year lease agreement with Stream Wetlands Services, LLC, a related party where the Company's President also serves as president. The lease includes contingent payments and a guaranteed minimum payment of **$500,000** under specific conditions[48](index=48&type=chunk) - Matilda Stream Management Inc. (MSM), also led by the Company's President and CFO, provides administrative services to the Company for no compensation[49](index=49&type=chunk) [Note 7: Concentrations](index=14&type=section&id=Note%207%3A%20Concentrations) **Revenue from Five Largest Customers (Six Months Ended June 30):** | Customer Rank | 2025 Revenue | 2024 Revenue | | :------------ | :----------- | :----------- | | 1 | $191,682 | $536,615 | | 2 | $30,000 | $240,578 | | 3 | $27,633 | $120,919 | | 4 | $26,950 | $31,212 | | 5 | $25,060 | $20,205 | [Note 8: Share-Based Compensation](index=14&type=section&id=Note%208%3A%20Share-Based%20Compensation) - The 2021 Stock Incentive Plan granted **76,755** restricted stock units (RSUs) and **280,245** performance shares (PSUs) in 2022[51](index=51&type=chunk) - On July 15, 2024, **196,900** unvested performance shares were forfeited due to unachieved performance criteria[52](index=52&type=chunk) - On April 16, 2025, the final tranche of **36,551** RSUs was issued, with **10,454** shares withheld for taxes and reported as treasury stock[53](index=53&type=chunk) - The total fair value of awards was **$3,374,002**, with no unrecognized stock-based compensation expense as of June 30, 2025[54](index=54&type=chunk) [ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS](index=16&type=section&id=ITEM%202.%20MANAGEMENT'S%20DISCUSSION%20AND%20ANALYSIS%20OF%20FINANCIAL%20CONDITION%20AND%20RESULTS%20OF%20OPERATIONS) This section analyzes CKX Lands, Inc.'s financial condition and results of operations for the three and six months ended June 30, 2025, covering business overview, recent developments, liquidity, capital resources, and accounting policies - The company's results for the six months ended June 30, 2025, were primarily driven by an increase in oil and gas revenue and a decrease in general and administrative expenses, offset by a decrease in surface revenues[76](index=76&type=chunk) [Cautionary Statement](index=16&type=section&id=Cautionary%20Statement) - The report contains forward-looking statements subject to risks and uncertainties that could cause actual results to differ materially[57](index=57&type=chunk) - The company undertakes no obligation to update or revise publicly any forward-looking statements[57](index=57&type=chunk) [Overview](index=16&type=section&id=Overview) - CKX Lands, Inc. derives income from mineral royalties, timber sales, and surface payments from its land holdings in southwest Louisiana[59](index=59&type=chunk) - The company is passive in oil and gas production, with income fluctuating based on production and commodity prices[59](index=59&type=chunk)[60](index=60&type=chunk) - The Board of Directors is evaluating strategic alternatives to increase shareholder value, including acquisitions, dispositions, or a potential sale of the company, and is in advanced discussions with a potential counterparty[67](index=67&type=chunk)[68](index=68&type=chunk)[70](index=70&type=chunk) - The company expects to seek to partition its undivided interests in co-owned lands[71](index=71&type=chunk) [Recent Developments](index=18&type=section&id=Recent%20Developments) - The company is developing ranchette-style subdivisions (over three acres each) in Calcasieu and Beauregard Parishes, with **24 of 39** lots sold as of June 30, 2025[73](index=73&type=chunk) - During the six months ended June 30, 2025, the company closed on the sale of one 25-acre lot and one 53-acre lot, resulting in a gain on sale of **$189,210**[75](index=75&type=chunk) [Results of Operations](index=18&type=section&id=Results%20of%20Operations) [Revenue – Three Months Ended June 30, 2025](index=19&type=section&id=Revenue%20%E2%80%93%20Three%20Months%20Ended%20June%2030%2C%202025) **Revenue (Three Months Ended June 30):** | Revenue Type | 2025 | 2024 | Change | Percent Change | | :------------- | :----- | :------- | :------- | :------------- | | Oil and gas | $57,488 | $161,148 | $(103,660) | (64.3)% | | Timber sales | $0 | $0 | $0 | - | | Surface revenue | $78,448 | $866,286 | $(787,838) | (90.9)% | | Total revenue | $135,936 | $1,027,434 | $(891,498) | (86.8)% | - The decrease in oil and gas revenues was primarily due to a reduction in net oil and gas produced[79](index=79&type=chunk) - The decrease in surface revenue was due to lower right-of-way income, partially offset by higher surface lease income[81](index=81&type=chunk) [Revenue – Six Months Ended June 30, 2025](index=19&type=section&id=Revenue%20%E2%80%93%20Six%20Months%20Ended%20June%2030%2C%202025) **Revenue (Six Months Ended June 30):** | Revenue Type | 2025 | 2024 | Change | Percent Change | | :------------- | :----- | :------- | :------- | :------------- | | Oil and gas | $325,996 | $243,648 | $82,348 | 33.8% | | Timber sales | $0 | $2,275 | $(2,275) | (100.0)% | | Surface revenue | $158,123 | $923,360 | $(765,237) | (82.9)% | | Total revenues | $484,119 | $1,169,283 | $(685,164) | (58.6)% | - Oil and gas revenues increased due to an increase in net oil and gas produced, partially offset by a decrease in the average sales price[85](index=85&type=chunk) - Timber revenue decreased by **100%** due to normal business variations in timber customers' harvesting[86](index=86&type=chunk) - Surface revenues decreased due to lower right-of-way income, partially offset by higher surface lease income[87](index=87&type=chunk) [Costs and Expenses – Three and Six Months Ended June 30, 2025](index=21&type=section&id=Costs%20and%20Expenses%20%E2%80%93%20Three%20and%20Six%20Months%20Ended%20June%2030%2C%202025) - Oil and gas costs increased by **$26** for the three months and **$10,370** for the six months ended June 30, 2025[88](index=88&type=chunk) - Timber costs decreased by **$3,866** for the three months and **$4,076** for the six months ended June 30, 2025, primarily due to decreased timber management costs[89](index=89&type=chunk) - General and administrative expenses decreased by **$352,323** for the three months and **$704,683** for the six months ended June 30, 2025, primarily due to lower professional fees and share-based compensation expense[90](index=90&type=chunk) [Gain on Sale of Land – Three and Six Months Ended June 30, 2025](index=21&type=section&id=Gain%20on%20Sale%20of%20Land%20%E2%80%93%20Three%20and%20Six%20Months%20Ended%20June%2030%2C%202025) - Gain on sale of land was **$189,210** for both the three and six months ended June 30, 2025, compared to **$140,582** in the prior year, resulting from the sale of two ranchette lots[91](index=91&type=chunk) [Liquidity and Capital Resources](index=21&type=section&id=Liquidity%20and%20Capital%20Resources) - The company had current assets of **$9,941,535** and current liabilities of **$174,706** as of June 30, 2025, with no outstanding debt[92](index=92&type=chunk)[93](index=93&type=chunk) - Management believes cash and cash equivalents are adequate for projected operations and possible land acquisitions[94](index=94&type=chunk) - Net cash provided by operating activities decreased to **$94,026** for the six months ended June 30, 2025, from **$353,909** in the prior year[96](index=96&type=chunk) - Net cash provided by investing activities significantly increased to **$4,100,527** in 2025 from **$175,067** in 2024, primarily due to higher maturities of certificates of deposit[97](index=97&type=chunk) - Net cash used in financing activities decreased to **$147,614** in 2025 from **$208,854** in 2024, due to fewer common stock repurchases[98](index=98&type=chunk) [Significant Accounting Policies and Estimates](index=22&type=section&id=Significant%20Accounting%20Policies%20and%20Estimates) - There were no changes in significant accounting policies and estimates during the six months ended June 30, 2025, from those reported in the Annual Report on Form 10-K for December 31, 2024[99](index=99&type=chunk) [Recent Accounting Pronouncements](index=22&type=section&id=Recent%20Accounting%20Pronouncements) - Refer to Note 1 for information regarding recently issued accounting pronouncements that may impact the financial statements[100](index=100&type=chunk) [Off-Balance Sheet Arrangements](index=22&type=section&id=Off-Balance%20Sheet%20Arrangements) - The company did not have any off-balance sheet arrangements, financings, or relationships with unconsolidated entities during the six months ended June 30, 2025[101](index=101&type=chunk) [ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK](index=10&type=section&id=ITEM%203.%20QUANTITATIVE%20AND%20QUALITATIVE%20DISCLOSURES%20ABOUT%20MARKET%20RISK) This item is marked as "Not Applicable" in the report, indicating no material quantitative or qualitative disclosures about market risk are required for the period - Item 3 is designated as "Not Applicable" for this reporting period[102](index=102&type=chunk) [ITEM 4. CONTROLS AND PROCEDURES](index=10&type=section&id=ITEM%204.%20CONTROLS%20AND%20PROCEDURES) Management, including the principal executive and financial officers, evaluated the effectiveness of the company's disclosure controls and procedures as of June 30, 2025, and concluded they were effective. There were no material changes in internal control over financial reporting during the quarter [Evaluation of Disclosure Controls and Procedures](index=22&type=section&id=Evaluation%20of%20Disclosure%20Controls%20and%20Procedures) - The company's principal executive officer and principal financial officer concluded that disclosure controls and procedures were effective as of June 30, 2025[102](index=102&type=chunk) [Changes in Internal Control Over Financial Reporting](index=22&type=section&id=Changes%20in%20Internal%20Control%20Over%20Financial%20Reporting) - There were no changes in the company's internal control over financial reporting during the three months ended June 30, 2025, that materially affected or are reasonably likely to materially affect these controls[103](index=103&type=chunk) [PART II. OTHER INFORMATION](index=23&type=section&id=PART%20II.%20OTHER%20INFORMATION) [ITEMS 1 – 4. NOT APPLICABLE](index=23&type=section&id=ITEMS%201%20%E2%80%93%204.%20NOT%20APPLICABLE) Items 1 (Legal Proceedings), 1A (Risk Factors), 2 (Unregistered Sales of Equity Securities and Use of Proceeds), 3 (Defaults Upon Senior Securities), and 4 (Mine Safety Disclosures) are all marked as "Not Applicable" for this reporting period - Items 1, 1A, 2, 3, and 4 of Part II are designated as "Not Applicable"[105](index=105&type=chunk) [ITEM 5. OTHER INFORMATION](index=23&type=section&id=ITEM%205.%20OTHER%20INFORMATION) During the second fiscal quarter of 2025, no director or officer adopted or terminated any contract, instruction, or written plan for the purchase or sale of the Registrant's securities - No director or officer adopted or terminated a contract, instruction, or written plan for the purchase or sale of the Registrant's securities during the second fiscal quarter of 2025[105](index=105&type=chunk) [ITEM 6. EXHIBITS](index=23&type=section&id=ITEM%206.%20EXHIBITS) This section lists the exhibits filed with the Form 10-Q, including corporate governance documents, certifications under the Sarbanes-Oxley Act, and Inline XBRL taxonomy files - Exhibits include Restated Articles of Incorporation, Amendments, Amended and Restated By-Laws[106](index=106&type=chunk) - Certifications of the President and Chief Financial Officer pursuant to Sections 302 and 906 of the Sarbanes-Oxley Act of 2002 are filed[106](index=106&type=chunk) - Inline XBRL Instance and Taxonomy Extension files are included[106](index=106&type=chunk) [SIGNATURES](index=24&type=section&id=SIGNATURES) [Signature](index=24&type=section&id=Signature) The report is duly signed on behalf of CKX Lands, Inc. by W. Gray Stream, President, on August 8, 2025 - The report was signed by W. Gray Stream, President (Principal executive officer) on August 8, 2025[109](index=109&type=chunk)[110](index=110&type=chunk)

```markdown [PART I - FINANCIAL INFORMATION](index=4&type=section&id=PART%20I%20-%20FINANCIAL%20INFORMATION) [Item 1. Financial Statements](index=4&type=section&id=ITEM%201.%20FINANCIAL%20STATEMENTS) For the first quarter ended March 31, 2025, CKX Lands, Inc. reported a significant turnaround, posting a net income of $115,573 compared to a net loss of $401,329 in the same period of 2024. This was driven by a 145.5% increase in total revenues, primarily from oil and gas. Total assets slightly increased to $18.96 million, and the company maintained a strong liquidity position with no debt [Balance Sheets](index=4&type=section&id=BALANCE%20SHEETS) As of March 31, 2025, the company's total assets increased slightly to $18.96 million from $18.85 million at year-end 2024. The increase was primarily in cash and cash equivalents. Total liabilities remained low at $259,796, and stockholders' equity grew to $18.70 million Balance Sheet Summary (Unaudited) | Balance Sheet Items | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Total Current Assets** | $9,751,251 | $9,579,388 | | **Total Assets** | **$18,958,423** | **$18,847,237** | | **Total Current Liabilities** | $259,796 | $264,183 | | **Total Liabilities** | **$259,796** | **$264,183** | | **Total Stockholders' Equity** | **$18,698,627** | **$18,583,054** | [Statements of Operations](index=5&type=section&id=STATEMENTS%20OF%20OPERATIONS) The company reported a net income of $115,573, or $0.06 per share, for the three months ended March 31, 2025, a significant improvement from a net loss of $401,329, or ($0.20) per share, in the prior-year period. The positive result was driven by a 145.5% increase in total revenue, mainly from oil and gas, and a substantial decrease in general and administrative expenses Quarterly Operating Results (Unaudited) | Metric | Three Months Ended Mar 31, 2025 | Three Months Ended Mar 31, 2024 | | :--- | :--- | :--- | | **Total Revenue** | **$348,184** | **$141,849** | | Oil and gas | $268,508 | $82,500 | | Surface revenue | $79,676 | $57,074 | | **Income (Loss) from Operations** | **$112,150** | **($436,606)** | | **Net Income (Loss)** | **$115,573** | **($401,329)** | | **Basic and Diluted EPS** | **$0.06** | **($0.20)** | [Statements of Changes in Stockholders' Equity](index=6&type=section&id=STATEMENTS%20OF%20CHANGES%20IN%20STOCKHOLDERS'%20EQUITY) Stockholders' equity increased from $18.58 million at the end of 2024 to $18.70 million as of March 31, 2025. The increase was solely due to the net income of $115,573 recorded during the quarter - For the three months ended March 31, 2025, total stockholders' equity increased by **$115,573**, reflecting the net income for the period[15](index=15&type=chunk) [Statements of Cash Flows](index=7&type=section&id=STATEMENTS%20OF%20CASH%20FLOWS) Net cash provided by operating activities was $118,664 for the first quarter of 2025, a reversal from net cash used in operating activities of $337,838 in the same period of 2024. The company's cash and cash equivalents increased by $290,907 during the quarter, ending at $3.71 million Quarterly Cash Flow Summary (Unaudited) | Cash Flow Activity | Three Months Ended Mar 31, 2025 | Three Months Ended Mar 31, 2024 | | :--- | :--- | :--- | | **Net cash provided by (used in) operating activities** | **$118,664** | **($337,838)** | | Net cash provided by investing activities | $172,243 | $34,485 | | **Net change in cash and cash equivalents** | **$290,907** | **($303,353)** | | Cash and cash equivalents, end of the period | $3,712,483 | $7,243,336 | [Notes to Financial Statements](index=8&type=section&id=NOTES%20TO%20FINANCIAL%20STATEMENTS) The notes detail the company's accounting policies, segment performance, and related party transactions. Operations are divided into three segments: oil and gas, timber, and surface. The oil and gas segment was the primary driver of revenue and gross profit in Q1 2025. The company has a significant concentration of revenue, with its largest customer accounting for $191,682. A related party lease agreement exists with Stream Wetlands Services, LLC, whose president is also the president of CKX Lands Segment Gross Profit - Q1 2025 vs Q1 2024 | Segment | Gross Profit (Q1 2025) | Gross Profit (Q1 2024) | | :--- | :--- | :--- | | Oil and Gas | $247,798 | $72,134 | | Timber | ($3,774) | ($1,708) | | Surface | $79,676 | $57,074 | | **Total Gross Profit** | **$323,700** | **$127,500** | - The company's revenue is concentrated, with the top customer generating **$191,682** in revenue for the three months ended March 31, 2025, compared to **$25,130** in the same period of 2024[47](index=47&type=chunk) - A related party transaction exists through a 25-year lease with Stream Wetlands Services, LLC, an entity whose president is also the President and a director of the Company[45](index=45&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=14&type=section&id=ITEM%202.%20MANAGEMENT'S%20DISCUSSION%20AND%20ANALYSIS%20OF%20FINANCIAL%20CONDITION%20AND%20RESULTS%20OF%20OPERATIONS) Management attributes the strong Q1 2025 results to increased oil and gas revenue, driven by higher prices and production, and a significant reduction in general and administrative expenses. The company continues to evaluate strategic alternatives to enhance shareholder value and is actively developing and marketing ranchette-style subdivisions. The company maintains a strong liquidity position with no debt and believes its cash reserves are adequate for operations and potential land acquisitions [Overview and Strategic Alternatives](index=14&type=section&id=Overview%20and%20Strategic%20Alternatives) CKX Lands derives income from oil and gas royalties, timber sales, and surface leases. The company is passive in oil and gas production, relying on third-party operators. In August 2023, the Board initiated a formal process to evaluate strategic alternatives, which is ongoing with advanced discussions with a potential counterparty. The company is also developing ranchette-style subdivisions, having sold 22 of 39 lots as of March 31, 2025 - The company's income is derived from three main sources: mineral royalties (oil and gas), timber sales, and surface payments (leases, rents)[52](index=52&type=chunk) - The Board of Directors is actively evaluating strategic alternatives to enhance shareholder value and has advanced discussions with a potential counterparty[60](index=60&type=chunk)[61](index=61&type=chunk)[62](index=62&type=chunk) - The company is developing and selling ranchette-style lots, with **22 of 39** developed lots sold as of March 31, 2025[65](index=65&type=chunk) [Results of Operations](index=16&type=section&id=Results%20of%20Operations) Total revenues for Q1 2025 increased by 145.5% year-over-year to $348,184, primarily due to a 225.5% surge in oil and gas revenue from higher prices and production. Surface revenue also grew by 39.6%. General and administrative expenses decreased significantly by $352,360, mainly due to lower share-based compensation and professional fees Revenue by Source - Q1 2025 vs Q1 2024 | Revenue Source | Q1 2025 | Q1 2024 | Change ($) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Oil and gas | $268,508 | $82,500 | $186,008 | 225.5% | | Timber sales | $0 | $2,275 | ($2,275) | (100.0)% | | Surface revenue | $79,676 | $57,074 | $22,602 | 39.6% | | **Total revenues** | **$348,184** | **$141,849** | **$206,335** | **145.5%** | - The increase in oil and gas revenue was due to higher average gas sales prices and an increase in net oil and gas produced from a larger number of wells (**71 vs 58**)[70](index=70&type=chunk) - General and administrative expenses decreased by **$352,360** compared to Q1 2024, primarily due to lower share-based compensation and professional fees[76](index=76&type=chunk) [Liquidity and Capital Resources](index=18&type=section&id=Liquidity%20and%20Capital%20Resources) The company has a strong liquidity position with $9.75 million in current assets and only $259,796 in current liabilities as of March 31, 2025. The company holds no outstanding debt. Cash flow from operations improved significantly, providing $118,664 in Q1 2025 compared to a use of $337,838 in Q1 2024 - As of March 31, 2025, the company had no outstanding debt[78](index=78&type=chunk) - Management believes that cash and cash equivalents are adequate for projected operations and potential land acquisitions[79](index=79&type=chunk) - Net cash from operating activities increased significantly to **$118,664** in Q1 2025 from a use of **$(337,838)** in Q1 2024, driven by higher net income[81](index=81&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=19&type=section&id=ITEM%203.%20QUANTITATIVE%20AND%20QUALITATIVE%20DISCLOSURES%20ABOUT%20MARKET%20RISK) This item is not applicable for the reporting period, as stated by the company - The company has indicated that this section is not applicable[87](index=87&type=chunk) [Item 4. Controls and Procedures](index=19&type=section&id=ITEM%204.%20CONTROLS%20AND%20PROCEDURES) Management concluded that the company's disclosure controls and procedures were effective as of March 31, 2025. A material weakness in internal control over financial reporting, identified as of December 31, 2024, related to the classification of cash equivalents and investments, was addressed during the first quarter of 2025 through the adoption of a new policy for reviewing third-party journal entries - Based on an evaluation, management concluded that the Company's disclosure controls and procedures were effective as of March 31, 2025[87](index=87&type=chunk) - A material weakness in internal control over financial reporting was identified as of December 31, 2024, due to inadequate controls over the accounting and classification of cash equivalents and short-term investments[88](index=88&type=chunk) - During Q1 2025, management adopted a new policy requiring review and approval of quarter-end closing journal entries to remediate the previously identified material weakness[89](index=89&type=chunk) [PART II - OTHER INFORMATION](index=19&type=section&id=PART%20II%20-%20OTHER%20INFORMATION) [Item 5. Other Information](index=20&type=section&id=ITEM%205.%20OTHER%20INFORMATION) During the first quarter of fiscal year 2025, no director or officer of the company adopted or terminated any contract, instruction, or written plan for the purchase or sale of the company's securities - No director or officer adopted or terminated a plan for the purchase or sale of company securities during the first fiscal quarter of 2025[92](index=92&type=chunk) [Item 6. Exhibits](index=21&type=section&id=ITEM%206.%20EXHIBITS) This section lists the exhibits filed with the Form 10-Q. Key exhibits include the CEO and CFO certifications required under Sections 302 and 906 of the Sarbanes-Oxley Act, as well as Inline XBRL data files - The filing includes certifications from the President (Principal Executive Officer) and Chief Financial Officer pursuant to the Sarbanes-Oxley Act of 2002[93](index=93&type=chunk) ```

Financial Performance - For the fiscal year 2024, the company reported a net income of $250,224, an increase from $142,961 in 2023, driven by a $35,519 increase in total revenue and a $30,155 decrease in general and administrative expenses[102]. - Total revenues for 2024 were $1,521,124, reflecting a 2.4% increase compared to $1,485,605 in 2023, with oil and gas revenues contributing $417,846, timber sales at $22,225, and surface revenues at $1,081,053[103]. - Oil revenues increased by 17.3% to $354,821, while gas revenues surged by 108.1% to $66,672, with total oil and gas revenues accounting for 27% of total revenues in 2024[106]. - The company experienced a decline in timber revenues, which fell by $131,922, representing 1% of total revenues in 2024 compared to 10% in 2023, attributed to timber harvest timing[112]. - Surface revenues increased by $130,249, making up 71% of total revenues in 2024, driven by robust economic activity in the region, including industrial project development[113]. Strategic Initiatives - The company is actively evaluating strategic alternatives to enhance shareholder value, including potential acquisitions and divestitures, and has received preliminary indications of interest from multiple parties regarding the acquisition of the company or its assets[95][96]. - The company plans to continue evaluating commercial, agricultural, and timber lands for acquisition and may consider developing properties for commercial or residential purposes[117]. - The Company is exploring strategic alternatives for growth, including land acquisitions and business combinations[122]. Land and Asset Management - The company has completed and recorded plans for three ranchette-style subdivisions, totaling approximately 575 acres, with 22 out of 39 lots sold as of December 31, 2024[100]. - The company reported a gain on the sale of land of $85,636 in 2024, down from $149,992 in 2023, indicating a decrease in land sale activity[116]. Cash Flow and Financial Position - As of December 31, 2024, the Company had current assets of $9,579,388 and current liabilities of $264,183[119]. - Net cash provided by operating activities decreased by $672,192 to $204,761 for the year ended December 31, 2024, compared to $876,953 for 2023[123]. - Net cash used in investing activities increased significantly to $4,121,020 for the year ended December 31, 2024, from $391,315 in 2023[124]. - The Company had no outstanding debt as of December 31, 2024, and 2023[120]. - Cash and cash equivalents are deemed adequate for projected operations and potential land acquisitions[121]. - Net cash used in financing activities was $208,854 for the year ended December 31, 2024, compared to $87,156 for 2023[125]. - The decrease in cash provided by operating activities was primarily due to a $459,337 decrease in current liabilities[123]. - The Company does not have any off-balance sheet arrangements or relationships with special purpose entities[127]. Accounting Policies - Significant accounting policies are discussed in Note 1 of the audited financial statements[126].

Revenue Performance - Total revenues for the three months ended September 30, 2024, were $171,269, a decrease of approximately 33.9% compared to the same period in 2023[55] - Oil and gas revenues increased by $25,416 to $73,340 for the three months ended September 30, 2024, representing a 53.0% increase year-over-year[55] - Timber revenue decreased by 84.0% to $18,883 for the three months ended September 30, 2024, due to normal business variations in timber customers' harvesting[58] - Surface revenues decreased by 14.8% to $79,046 for the three months ended September 30, 2024, attributed to lower oil and gas delay rental income[59] - Total revenues for the nine months ended September 30, 2024, were $1,340,550, an increase of approximately 68.6% compared to the same period in 2023[60] - Oil and gas revenues for the nine months ended September 30, 2024, increased by $118,506 to $316,986, driven by increased net oil and gas production[61] - Surface revenues increased by 115.3% to $1,002,406 for the nine months ended September 30, 2024, due to three natural gas pipeline right of way agreements[62] Expenses and Cash Flow - General and administrative expenses increased by $85,647 for the nine months ended September 30, 2024, primarily due to increased land research advisory fees[65] - Net cash provided by operating activities decreased to $107,406 for the nine months ended September 30, 2024, down from $252,420 in 2023, primarily due to a decrease in share-based compensation[69] - Net cash used in investing activities increased significantly to $4,126,604 for the nine months ended September 30, 2024, compared to $374,184 in 2023, driven by purchases of certificates of deposits totaling $7,340,723[70] - Net cash used in financing activities was $208,854 for the nine months ended September 30, 2024, attributed to repurchases of common stock, whereas there were no financing activities in 2023[71] Financial Position - Current assets totaled $9,460,950 with current liabilities of $174,134 as of September 30, 2024, indicating a strong liquidity position[67] - The company did not have any off-balance sheet arrangements or relationships with special purpose entities during the nine months ended September 30, 2024[73] - There were no changes in significant accounting policies and estimates during the nine months ended September 30, 2024, compared to the previous year[72] Strategic Initiatives - The Company has initiated a formal process to evaluate strategic alternatives to enhance shareholder value, including potential acquisitions and asset sales[49]

Financial Performance - Total revenue for the three months ended June 30, 2024, was $1,027,434, a significant increase of 177.6% compared to $370,380 for the same period in 2023[6] - Net income for the three months ended June 30, 2024, was $565,278, compared to a net income of $103,228 for the same period in 2023, representing a year-over-year increase of 448.5%[6] - Basic net income per share for the three months ended June 30, 2024, was $0.28, compared to $0.05 for the same period in 2023, indicating a year-over-year increase of 460%[6] - Net income for the six months ended June 30, 2024, was $163,949, compared to a net loss of $134,411 for the same period in 2023[10] - The company’s income before income taxes for the first half of 2024 was $710,756, a significant increase from $137,637 in 2023, reflecting a growth of 417%[26] Revenue Breakdown - Oil and gas revenues reached $161,148 for the three months ended June 30, 2024, up 58.8% from $101,361 in the same period last year[6] - Surface revenue increased to $866,286 for the three months ended June 30, 2024, compared to $258,237 for the same period in 2023, marking a growth of 235.5%[6] - Oil and gas revenues for the first half of 2024 were $161,148, compared to $101,361 in 2023, marking a 59% increase[26] - Oil and gas revenues accounted for 21% of total revenues for the six months ended June 30, 2024, compared to 28% in the same period of 2023[49] - The company’s five largest customers generated revenues of $536,615 and $175,020 for the six months ended June 30, 2024, and 2023, respectively, showing a substantial increase of 206%[29] Expenses and Liabilities - General and administrative expenses rose to $503,118 for the three months ended June 30, 2024, compared to $253,991 in the same period last year, reflecting an increase of 97.8%[6] - The company reported total segment costs and expenses of $17,705 for the first half of 2024, compared to $13,222 in 2023, indicating a rise of 34%[26] - Cash and cash equivalents at the end of the period were $7,866,811, down from $8,386,252 at the end of the previous year[10] - The company had no outstanding debt as of June 30, 2024, with current assets totaling $9,688,496[54] Asset Management - Total stockholders' equity as of June 30, 2024, was $18,484,163, an increase from $18,318,058 as of December 31, 2023[5] - The total liabilities and stockholders' equity as of June 30, 2024, amounted to $18,950,450, compared to $18,813,406 as of December 31, 2023[5] - Total identifiable assets as of June 30, 2024, were $18,950,450, compared to $18,813,406 at the end of 2023[25] Shareholder Activities - The company repurchased 39,012 shares of treasury stock at a cost of $472,602 as of June 30, 2024, compared to 22,946 shares at a cost of $263,748 as of December 31, 2023[5] - Share-based compensation expense recognized for the six months ended June 30, 2024, was $211,010 for restricted stock units, compared to $209,864 in the same period of 2023[31] Strategic Initiatives - The company actively searches for additional real estate for purchase, focusing on southwest Louisiana, with an emphasis on timberland and agricultural land[40] - The company is actively seeking additional undeveloped acres in Southwest Louisiana for potential residential subdivisions[43] - The company has received preliminary indications of interest from multiple parties regarding the potential acquisition of the company or its assets, as part of a strategic evaluation process initiated on August 21, 2023[41] Other Information - The company did not declare any dividends during the six months ended June 30, 2024, and 2023[17] - Depreciation expense remained consistent at $2,130 for both the six months ended June 30, 2024, and 2023[24] - No impairment charges were recorded during the six months ended June 30, 2024, and 2023, indicating stable asset valuations[14] - The company has not made any further awards under the 2021 Stock Incentive Plan during the six months ended June 30, 2024[15] - The company has restated its Articles of Incorporation and amended its By-Laws as of August 10, 2023[63] - The certifications of the President and Chief Financial Officer were filed pursuant to the Sarbanes-Oxley Act of 2002[63] - The report was signed on behalf of CKX Lands, Inc. by W. Gray Stream, the President and Principal Executive Officer[64]

Revenue Performance - For the three months ended March 31, 2024, total revenues decreased to $141,849 from $165,762 in the same period of 2023, representing a decline of 14.4%[17] - Oil and gas revenues increased significantly to $82,500, up 67.7% from $49,195 in the prior year[17] - Timber sales rose to $2,275, reflecting a 19.7% increase from $1,901 in the previous year[17] - Surface revenue dropped to $57,074, a decrease of 50.2% compared to $114,666 in the same period last year[17] - The company reported a gain on the sale of land of $0 for the three months ended March 31, 2024, compared to $149,992 in the same period of 2023[21] Financial Position - Current assets totaled $8,982,131, while current liabilities were $368,394 as of March 31, 2024[22] - Management believes that cash and cash equivalents are adequate for projected operations and potential land acquisitions[23] Operational Management - The company has established relationships with various consultants and attorneys to manage its lands effectively[12] - CKX has small royalty interests in 20 different producing oil and gas fields, with interests ranging from 0.0045% to 7.62%[11] - The company closed the sale of two 40-acre parcels for proceeds of $149,992 during 2023[14]

Revenue Changes - Oil revenues decreased by $152,705 for the year ended December 31, 2023, compared to 2022, due to a decrease in net oil produced and average oil sales price per barrel [75]. - Gas revenues decreased by $76,809 for the year ended December 31, 2023, attributed to a decrease in average price per MCF and net gas produced [75]. - Timber revenues accounted for 10% of total revenues in 2023, down from 20% in 2022, with a decrease of $65,827 year-over-year, primarily due to timber harvest timing [78]. - Surface revenues increased by $662,039 for the year ended December 31, 2023, representing 64% of total revenues, up from 26% in 2022, driven by robust economic activity in the region [79]. Financial Performance - Net cash provided by operating activities increased by $463,262 to $876,953 for the year ended December 31, 2023, compared to $413,691 in 2022, mainly due to increased revenue [86]. - Gain on sale of land was $149,992 for the year ended December 31, 2023, compared to $18,972 in 2022, resulting from the sale of two parcels of land [85]. Assets and Liabilities - The Company had current assets of $9,388,882 and current liabilities of $495,348 as of December 31, 2023 [74]. - The Company has no outstanding debt as of December 31, 2023, and management believes cash and cash equivalents are adequate for projected operations and possible land acquisitions [92]. Strategic Initiatives - The Company is evaluating strategic alternatives to enhance shareholder value, including potential acquisitions and divestitures, as announced on August 21, 2023 [100]. - The Company expects that direct land management and ongoing economic activity in southwest Louisiana may lead to increased surface revenue in fiscal year 2024 [98].

Financial Performance - Total revenue for September 2023 was $259,031, a decrease of 21.5% compared to $330,232 in September 2022[41]. - Net loss for September 2023 was $98,679, an improvement from a net loss of $323,654 in September 2022[44]. - Oil and gas revenue decreased to $47,924 in September 2023 from $188,233 in September 2022, representing a decline of 74.5%[41]. - Timber sales increased to $118,365 in September 2023, up 34.5% from $87,904 in September 2022[41]. - Basic earnings per share for September 2023 was $0.02, compared to a loss of $0.03 in September 2022[41]. - Total segment revenues for the nine months ended September 30, 2023, were $795,173, a decrease of approximately 3.3% from $822,362 in the same period of 2022[80]. - Net income from operations for the nine months ended September 30, 2023, was $763,872, compared to $772,338 for the same period in 2022, indicating a slight decline[80]. - Oil and gas income for the nine months ended September 30, 2023, was $198,480, down from $412,375 in the same period of 2022, reflecting a significant decrease[80]. - Timber sales revenue for the nine months ended September 30, 2023, was $131,048, compared to $198,283 for the same period in 2022, showing a decline[80]. Expenses and Liabilities - General and administrative expenses were $246,268 in September 2023, down 40.1% from $411,189 in September 2022[41]. - Total current liabilities decreased to $118,064 in September 2023 from $267,176 in September 2022, a reduction of 55.9%[40]. - General and administrative expenses decreased by $164,921 for the three months ended September 30, 2023, primarily due to a decrease in stock compensation expense[126]. - Oil and gas costs decreased by $10,801 and $11,923 for the three and nine months ended September 30, 2023, respectively, due to normal year-to-year variations[114]. Cash Flow and Assets - Cash and cash equivalents at the end of September 2023 were $7,026,443, a decrease from $7,382,956 at the end of September 2022[44]. - Net cash provided by operating activities was $252,420 in September 2023, compared to $176,096 in September 2022, an increase of 43.3%[44]. - Net cash provided by operating activities was $252,420 for the nine months ended September 30, 2023, an increase from $176,096 in 2022, primarily due to a decrease in net loss[115]. - Current assets totaled $8,746,578 and current liabilities equaled $118,064 at September 30, 2023[128]. - Identifiable assets as of September 30, 2023, totaled $18,176,133, an increase from $17,687,590 as of December 31, 2022[70]. Strategic Initiatives - The Company announced on August 21, 2023, the initiation of a formal process to evaluate strategic alternatives to enhance shareholder value[140]. - The exploration of strategic alternatives may not lead to a successful transaction, which could adversely affect the company's business and stockholders[152]. Other Financial Metrics - The company reported a gain on the sale of land of $149,992 in September 2023, compared to $5,667 in September 2022[57]. - Gain on sale of land was $149,992 for the nine months ended September 30, 2023, compared to $5,667 in the same period in 2022[127]. - The total fair value of share-based awards was $3,374,002, with $329,131 unrecognized stock-based compensation expense as of September 30, 2023[72]. - Share-based compensation expense recognized for restricted stock units was $315,369 and for performance shares was $420,965 for the nine months ended September 30, 2023[88]. - Depreciation expense for the nine months ended September 30, 2023, was $3,196, compared to $1,901 for the same period in 2022, representing an increase of approximately 68%[68]. - The company has not identified any material changes to the risk factors previously disclosed in its Annual Report for the year ended December 31, 2022[152]. - The report includes certifications from the President and Chief Financial Officer in compliance with the Sarbanes-Oxley Act[153][154].

Revenue Performance - Total revenues for the three months ended June 30, 2023, were $370,380, an increase of approximately 19% compared to the same period in 2022[75]. - Total revenues for the six months ended June 30, 2023, were $536,142, an increase of approximately 9% compared to the same period in 2022[87]. - Oil and gas revenues decreased by $41,851, or 29.8%, for the three months ended June 30, 2023, compared to the same period in 2022[82]. - Oil and gas revenues for the six months ended June 30, 2023, were $150,556, a decrease of 32.8% from $224,142 in the same period in 2022[88]. - Timber revenue was $10,782 for the three months ended June 30, 2023, a decrease of 87.8% from $88,637 in the same period in 2022[85]. - Timber revenue for the six months ended June 30, 2023, was $12,683, down 88.5% from $110,379 in the same period in 2022[91]. - Surface revenues increased by $178,374, or 223.3%, for the three months ended June 30, 2023, primarily due to new pipeline right-of-way payments[86]. - Surface revenues increased by $215,294, or 136.6%, for the six months ended June 30, 2023, due to increased oil and gas delay rentals[93]. - Gain on sale of land was $149,992 for the three months ended June 30, 2023, compared to $0 for the same period in 2022[99]. Costs and Expenses - Timber costs decreased by $244 for the three months ended June 30, 2023, compared to the same period in 2022, but increased by $778 for the six months ended June 30, 2023, due to higher timber management costs[96]. - Surface costs increased by $225 for the three months ended June 30, 2023, but decreased by $4,904 for the six months ended June 30, 2023, primarily due to timing of land repair and maintenance expenses[97]. - General and administrative expenses decreased by $343,305 for the three months ended June 30, 2023, but increased by $131,650 for the six months ended June 30, 2023, mainly due to stock compensation expense changes[98]. Cash Flow and Liquidity - Net cash provided by operating activities was $104,185 for the six months ended June 30, 2023, compared to a cash used of ($139,279) in the same period of 2022, reflecting a decrease in net loss[104]. - Net cash provided by investing activities was $1,133,860 for the six months ended June 30, 2023, primarily from maturity of certificates of deposit and proceeds from the sale of fixed assets[105]. - Current assets totaled $8,589,916 and current liabilities equaled $116,069 at June 30, 2023, indicating strong liquidity[100]. - The company had no outstanding debt as of June 30, 2023, and management believes cash and cash equivalents are adequate for projected operations and possible land acquisitions[101][102]. - The company did not have any off-balance sheet arrangements or special purpose entities during the six months ended June 30, 2023[111]. Strategic Initiatives - The company has closed on the sale of two 40-acre parcels for proceeds of $149,992 during the first six months of 2023[79]. - The company is actively searching for additional real estate for purchase in Louisiana, focusing on timberland and agricultural land[76]. - The Board of Directors is evaluating strategic alternatives for growth, including land acquisitions and business combinations, to enhance shareholder value[103].