Financial Performance - For Q1 2024, New Concept Energy reported a net income applicable to common shares of $2,000, a decrease from $17,000 in Q1 2023[1]. - Total revenue for Q1 2024 was $36,000, down 20% from $45,000 in Q1 2023, with rental income contributing $25,000 and management fees $11,000[2]. - Corporate general and administrative expenses increased to $78,000 in Q1 2024 from $68,000 in Q1 2023, reflecting a 14.7% rise[2]. - Interest income for both Q1 2024 and Q1 2023 was $57,000 and $52,000 respectively, indicating a 9.6% increase year-over-year[2]. - The net income per common share for Q1 2024 remained at $0.01, consistent with Q1 2023[11]. Assets and Liabilities - Total assets as of March 31, 2024, were $4,624,000, slightly down from $4,630,000 as of December 31, 2023[5]. - Current liabilities decreased to $67,000 in Q1 2024 from $75,000 in Q4 2023, a reduction of 10.7%[8]. - Total shareholders' equity increased to $4,557,000 as of March 31, 2024, compared to $4,555,000 at the end of 2023[9]. Shareholder Information - The company maintained a weighted average of 5,132,000 common shares outstanding for both Q1 2024 and Q1 2023[11]. Business Operations - New Concept Energy continues to own real estate in West Virginia and provide management services for a third-party oil and gas company[3].

Financial Performance - Total revenues for Q1 2024 were $36,000, a decrease of 20% compared to $45,000 in Q1 2023[19] - Operating loss for Q1 2024 was $(55,000), compared to $(35,000) in Q1 2023, indicating a worsening of operational performance[19] - Net income applicable to common shares for Q1 2024 was $2,000, down from $17,000 in Q1 2023, reflecting a decline of approximately 88.24%[19] - The Company reported net income from continuing operations of $2,000 for the three months ended March 31, 2024, compared to net income of $17,000 for the same period in 2023, representing a decrease of approximately 88.24%[41] - Revenue for the three months ended March 31, 2024 was $36,000, which included $25,000 in rental income and $11,000 in management fees[41] - Corporate general and administrative expenses increased to $78,000 for the three months ended March 31, 2024, up from $68,000 in the comparable period in 2023, reflecting a rise of approximately 14.71%[41] Cash and Liquidity - Cash and cash equivalents decreased to $395,000 as of March 31, 2024, from $447,000 at the beginning of the year[26] - Cash and cash equivalents decreased to $395,000 at March 31, 2024, down from $447,000 at December 31, 2023, a decline of approximately 11.63%[41] - As of March 31, 2024, the Company had current assets of $456,000 and current liabilities of $67,000, indicating a strong liquidity position[41] - The Company maintains cash balances at financial institutions insured up to $250,000 by the Federal Deposit Insurance Corporation, with no significant concentration of credit risk as of March 31, 2024[34] - The Company has not experienced any losses with respect to its bank balances in excess of government-provided insurance[34] Assets and Liabilities - Total assets as of March 31, 2024, were $4,624,000, slightly down from $4,630,000 at the end of 2023[10] - Total liabilities decreased to $67,000 as of March 31, 2024, from $75,000 at the end of 2023, showing a reduction of approximately 10.67%[13] - Stockholders' equity increased to $4,557,000 as of March 31, 2024, compared to $4,555,000 at the end of 2023[15] Business Strategy - The company is actively evaluating business opportunities to enhance income and cash flow[31] - The Company has established a 100% valuation allowance against its deferred tax assets due to uncertainty regarding the realization of these benefits[40] - The Company has extinguished all outstanding debt, resulting in minimal risk from exposure to changes in interest rates[46] Other Information - The company reported interest income from related parties of $57,000 in Q1 2024, up from $52,000 in Q1 2023, indicating a growth of 9.62%[19] - The Company has maintained its common stock outstanding at 5,131,934 shares since December 31, 2023[15] - The Company has evaluated subsequent events through May 8, 2024, and determined that there are none to be reported[35]

Revenue and Income - The Company reported revenues from rent for the leased property of $101,000 in both 2023 and 2022[32]. - Management fees from oil and gas operations decreased to $51,000 in 2023 from $111,000 in 2022, attributed to a decline in oil and gas prices[32]. - Revenue for the year ended December 31, 2023, was $152 million, down from $212 million in 2022, a decrease of 28.3%[110]. - Operating revenue was $152,000, down from $212,000 in 2022, while total operating expenses increased to $395,000 from $362,000[147]. - The company reported interest income from a related party of $213 million in 2023, slightly up from $212 million in 2022[110]. - The effective income tax rate for 2023 was 0.00%, consistent with 2022, reflecting no income tax expense due to net operating losses[141]. Expenses and Losses - Operating expenses for the real estate property remained stable at $57,000 in both 2023 and 2022, while general and administrative expenses increased to $338,000 in 2023 from $317,000 in 2022[32]. - Operating loss increased to $(243) million in 2023 from $(162) million in 2022, reflecting a worsening of 50%[110]. - Net income applicable to common shares was $(21) million in 2023, compared to a net income of $181 million in 2022, indicating a significant decline[110]. - The company recognized interest income of $222,000 in 2023, compared to $374,000 in 2022, indicating a decrease in interest income[147]. - The company’s total accumulated depreciation increased to $155,000 in 2023 from $142,000 in 2022, reflecting ongoing asset depreciation[135]. Assets and Liabilities - The Company had current assets of $459,000 and current liabilities of $75,000 as of December 31, 2023[31]. - Total assets decreased from $4,639 million in December 2022 to $4,630 million in December 2023, a decline of approximately 0.2%[106]. - Current liabilities increased from $63 million in December 2022 to $75 million in December 2023, representing a rise of 19%[105]. - As of December 31, 2023, the company reported total fixed assets of $784,000, an increase from $773,000 in 2022, with net fixed assets at $629,000 compared to $631,000 in the previous year[135]. - The accumulated deficit increased from $(59,055) million in December 2022 to $(59,076) million in December 2023[106]. Cash and Investments - Cash and cash equivalents totaled $447,000 at December 31, 2023, up from $436,000 at the end of 2022[31]. - The company maintains cash balances at financial institutions insured up to $250,000, with no significant concentration of credit risk reported as of December 31, 2023[144]. - The company has a significant note receivable of $3.5 million from a related party, which is crucial for meeting current cash obligations[119]. Corporate Governance - The Audit Committee met five times in 2023, with all members meeting independence requirements as per SEC regulations[52]. - The Audit Committee is chaired by Dan Locklear, who is qualified as an "audit committee financial expert" under SEC regulations[52]. - The Company has adopted a code of ethics applicable to all directors, officers, and employees, which is available on its website[58]. - The Board of Directors held five meetings in 2023, with no director attending fewer than 75% of the meetings[51]. - All directors and executive officers collectively own 0% of the Company's common stock as of March 29, 2024[69]. Audit and Compliance - The Company’s internal control over financial reporting was assessed as effective as of December 31, 2023[37]. - The Audit Committee actively monitors spending levels and work content to maintain auditor independence[78]. - The Audit Committee is responsible for pre-approving audit and non-audit services to ensure auditor independence[79]. - The Company has adopted a pre-approval policy for audit and non-audit services to comply with SEC rules[79]. - There were no critical audit matters identified during the audit of the financial statements for the year ended December 31, 2022[89]. Future Outlook - The company plans to continue expanding its market presence and investing in new technologies to drive future growth[153]. - The financial statements were made available for issuance on March 28, 2024, indicating ongoing financial health and operational readiness[155].

Financial Performance - Total revenues for the three months ended September 30, 2023, were $35,000, a decrease of 44.4% compared to $63,000 for the same period in 2022[15] - Net income applicable to common shares for the three months ended September 30, 2023, was $7,000, compared to $27,000 for the same period in 2022, representing a decline of 74.1%[15] - For the three months ended September 30, 2023, the company reported net income of $7,000, a decrease of 74% compared to net income of $27,000 for the same period in 2022[44] - For the nine months ended September 30, 2023, the company reported net income of $18,000, down 89% from $170,000 for the same period in 2022[45] - Total revenue for the nine months ended September 30, 2023 was $155,000, including $76,000 from rental revenue and $39,000 from management fees, compared to $155,000 in total revenue for the same period in 2022[45] Expenses and Liabilities - Operating expenses for the three months ended September 30, 2023, were $85,000, a decrease of 4.5% from $89,000 in the prior year[15] - Corporate general and administrative expenses for the nine months ended September 30, 2023 were $219,000, a decrease from $231,000 for the same period in 2022[45] - Total liabilities as of September 30, 2023, were $64,000, compared to $63,000 as of December 31, 2022, indicating a marginal increase[11] Cash and Assets - Cash and cash equivalents at the end of the period were $460,000, an increase of 5.5% from $436,000 at the beginning of the year[18] - Total assets as of September 30, 2023, were $4,658,000, a slight increase from $4,639,000 as of December 31, 2022[9] - Cash and cash equivalents at September 30, 2023 were $460,000, an increase from $436,000 at December 31, 2022[43] - The company maintains cash balances at financial institutions that are insured up to $250,000, with cash balances exceeding federal insurance limits at times during the year[37] Business Operations and Strategy - The company did not report any new product launches or significant market expansion strategies during this quarter[15] - The company is evaluating business opportunities to provide additional income and cash flow[36] - The company has a note receivable of $3,542,000 due from American Realty Investors, Inc., with a maturity date extended to September 2025[34] Market and Growth Projections - The company reported a significant increase in revenue, achieving $150 million for the quarter, representing a 25% year-over-year growth[57] - User data showed a total of 1.2 million active users, up from 1 million in the previous quarter, indicating a 20% increase[57] - The company provided guidance for the next quarter, projecting revenue between $160 million and $170 million, which would reflect a growth rate of 7% to 13%[57] - New product launches are expected to contribute an additional $10 million in revenue over the next quarter[57] - The company is expanding its market presence in Europe, targeting a 15% market share by the end of the fiscal year[57] Research and Development - Research and development expenses increased by 30% to $5 million, focusing on innovative technologies[57] Strategic Initiatives - The company announced a strategic acquisition of a smaller competitor for $20 million, aimed at enhancing its product offerings[57] - Operating income for the quarter was reported at $30 million, with a margin of 20%[57] - The company plans to implement cost-cutting measures to improve profitability, targeting a reduction of $2 million in operational expenses[57] - The management expressed confidence in achieving long-term growth, emphasizing a commitment to shareholder value[57]

Financial Performance - Total revenues for Q2 2023 were $35,000, a decrease of 25.5% compared to $47,000 in Q2 2022[15] - Operating expenses for Q2 2023 were $95,000, an increase of 2.2% from $93,000 in Q2 2022[15] - Net loss applicable to common shares for Q2 2023 was $(6,000), compared to a net income of $138,000 in Q2 2022[15] - For the six months ended June 30, 2023, the company reported a net income of $11,000, a decrease of 92.3% compared to net income of $143,000 for the same period in 2022[40] - For the three months ended June 30, 2023, the company reported a net loss of $6,000 compared to a net income of $138,000 for the same period in 2022[38] Cash and Assets - Cash and cash equivalents at the end of Q2 2023 were $432,000, a slight decrease from $436,000 at the beginning of the year[17] - Total assets as of June 30, 2023, were $4,644,000, up from $4,639,000 as of December 31, 2022[11] - Cash and cash equivalents at June 30, 2023 were $432,000, slightly down from $436,000 at December 31, 2022[37] - As of June 30, 2023, the company had current assets of $4,019,000 and current liabilities of $57,000, indicating a strong liquidity position[37] Stockholder Equity and Deficit - Stockholders' equity increased to $4,587,000 as of June 30, 2023, compared to $4,576,000 at the end of 2022[11] - The accumulated deficit as of June 30, 2023, was $(59,044,000), slightly improved from $(59,055,000) at the end of 2022[11] Revenue Sources - Revenue for the six months ended June 30, 2023 was $80,000, including $51,000 from rental income and $29,000 from management fees, consistent with the rental income of $51,000 in the comparable period of 2022[40] - The company reported interest income of $54,000 for Q2 2023, consistent with the same period in 2022[15] Expenses - Corporate general and administrative expenses for the six months ended June 30, 2023 were $149,000, down from $160,000 in the same period of 2022, reflecting a reduction in administrative expenses[40] Business Operations - The company owns approximately 190 acres of land in Parkersburg, West Virginia, with four structures totaling approximately 53,000 square feet[28] - The company has entered into a Consulting Management Agreement for oil and gas operations, earning a fee of 10% of gross revenue since January 1, 2022[28] - The company is evaluating business opportunities to provide additional income and cash flow[30] Tax and Financial Reporting - The company has established a 100% valuation allowance against its deferred tax assets due to uncertainty in realizing future tax benefits[36] Documentation and Outlook - No relevant financial data or performance metrics were provided in the documents[49] - The documents primarily consist of legal and corporate governance materials, with no earnings summary or user data available[50] - There are no future outlooks or performance guidance mentioned in the provided content[51]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE QUARTER ENDED March 31, 2023 Or ¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD FROM TO Commission File Number 000-08187 NEW CONCEPT ENERGY, INC. (State or Other Jurisdiction of Incorporation or Organization) (I.R.S. Employer Identification No.) Nevada 75-2399477 ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K x ANNUAL REPORT PURSUANT TO SECTION 13 OR 5(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Year ended December 31, 2022 OR o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD FROM TO Commission File Number 000-08187 NEW CONCEPT ENERGY, INC. | --- | --- | --- | |-----------------------------------------|----------------------------------|----------------------- ...

[PART I: FINANCIAL INFORMATION](index=3&type=section&id=PART%20I%3A%20FINANCIAL%20INFORMATION) [Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) The company's financial statements for the period ended September 30, 2022, show an increase in total assets and stockholders' equity compared to year-end 2021, with improved net income driven by new management fee revenue, despite a decrease in operating cash flow [Consolidated Balance Sheets](index=3&type=section&id=Consolidated%20Balance%20Sheets) As of September 30, 2022, total assets were **$4,622 thousand**, an increase from **$4,455 thousand** at December 31, 2021, primarily driven by an increase in cash and cash equivalents, while total stockholders' equity rose to **$4,565 thousand** from **$4,395 thousand** Consolidated Balance Sheet Highlights (in thousands) | Account | Sep 30, 2022 (Unaudited) | Dec 31, 2021 (Audited) | | :--- | :--- | :--- | | **Total Current Assets** | $3,988 | $3,812 | | **Total Assets** | **$4,622** | **$4,455** | | **Total Current Liabilities** | $57 | $60 | | **Total Stockholders' Equity** | $4,565 | $4,395 | | **Total Liabilities & Equity** | **$4,622** | **$4,455** | [Consolidated Statements of Operations](index=5&type=section&id=CONSOLIDATED%20STATEMENT%20OF%20OPERATIONS) For the third quarter of 2022, the company reported a net income of **$27 thousand**, a significant turnaround from a net loss of **$8 thousand** in the same period of 2021, with nine-month net income increasing to **$170 thousand** from **$120 thousand** due to new management fee revenue Operating Results (in thousands, except per share data) | Metric | Q3 2022 | Q3 2021 | 9 Months 2022 | 9 Months 2021 | | :--- | :--- | :--- | :--- | :--- | | **Total Revenue** | $63 | $25 | $155 | $76 | | *Management Fee* | *$38* | *$0* | *$79* | *$0* | | Operating Loss | $(26) | $(62) | $(119) | $(233) | | **Net Income (Loss)** | **$27** | **$(8)** | **$170** | **$120** | | **EPS (basic & diluted)** | **$0.01** | **$(0.01)** | **$0.03** | **$0.02** | [Consolidated Statements of Cash Flows](index=6&type=section&id=CONSOLIDATED%20STATEMENTS%20OF%20CASH%20FLOWS) For the nine months ended September 30, 2022, net cash provided by operating activities was **$147 thousand**, a decrease from **$261 thousand** in the prior-year period, with the company's cash and cash equivalents increasing to **$399 thousand** from **$252 thousand** Cash Flow Summary (in thousands) | Cash Flow Item | Nine Months Ended Sep 30, 2022 | Nine Months Ended Sep 30, 2021 | | :--- | :--- | :--- | | Net Cash from Operating Activities | $147 | $261 | | Net Cash from Investing Activities | $0 | $153 | | Net Cash from Financing Activities | $0 | $(192) | | **Net Increase in Cash** | **$147** | **$222** | | **Cash at End of Period** | **$399** | **$249** | [Consolidated Statements of Changes in Stockholders' Equity](index=7&type=section&id=CONSOLIDATED%20STATEMENTS%20OF%20CHANGES%20IN%20STOCKHOLDERS%20%27%20EQUITY) Total stockholders' equity increased from **$4,395 thousand** at the end of 2021 to **$4,565 thousand** as of September 30, 2022, entirely due to the **$170 thousand** in net income earned during the first nine months of 2022 - For the nine months ended September 30, 2022, total stockholders' equity increased by **$170 thousand**, from **$4,395 thousand** to **$4,565 thousand**, reflecting the net income for the period[21](index=21&type=chunk) [Notes To Consolidated Financial Statements](index=8&type=section&id=Notes%20To%20Consolidated%20Financial%20Statements) The notes clarify that the company's primary operations involve owning and leasing property in West Virginia, with a new Consulting Management Agreement for oil and gas operations generating a **10% fee** of gross revenue, and liquidity depending on cash from operations and notes receivable collection - The company owns 190 acres in Parkersburg, West Virginia, with four structures, and a portion of the main building is leased for **$101 thousand** per year[27](index=27&type=chunk) - Effective January 1, 2022, the company entered a Consulting Management Agreement to provide services for oil and gas operations for a fee of **10% of gross revenue**[27](index=27&type=chunk) - The company's ability to meet cash obligations relies on cash from current operations and the collection of notes receivable[29](index=29&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=9&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management reports a stable liquidity position with current assets of approximately **$3,988 thousand** far exceeding current liabilities of **$57 thousand**, driven by new management fee revenue and other income, while maintaining a full valuation allowance against deferred tax assets [Critical Accounting Policies and Estimates](index=9&type=section&id=Critical%20Accounting%20Policies%20and%20Estimates) Management identifies estimates for doubtful accounts and deferred tax assets as critical accounting policies requiring significant judgment, establishing a **100% valuation allowance** against net deferred tax assets due to uncertainty about generating future taxable income - A **100% valuation allowance** was established against the deferred tax asset because management could not determine that it was more likely than not that the benefit would be realized[36](index=36&type=chunk) [Liquidity and Capital Resources](index=9&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintained a strong liquidity position as of September 30, 2022, with current assets at **$3,988 thousand** and current liabilities at **$57 thousand**, and cash and cash equivalents increasing to **$399 thousand** from **$252 thousand** at the end of 2021 Liquidity Snapshot (in thousands) | Metric | Sep 30, 2022 | | :--- | :--- | | Current Assets | $3,988 | | Current Liabilities | $57 | | Cash and cash equivalents | $399 | [Results of Operations](index=9&type=section&id=Results%20of%20Operations) For Q3 2022, revenue grew to **$63 thousand** from **$25 thousand** in Q3 2021, driven by **$38 thousand** in new management fees, resulting in a net income of **$27 thousand** compared to an **$8 thousand** loss, with nine-month net income rising to **$170 thousand** from **$120 thousand** - For Q3 2022, the company earned net income of **$27 thousand** compared to a net loss of **$8 thousand** in Q3 2021, with revenue increasing due to **$38 thousand** in management fees[37](index=37&type=chunk) - For the nine months ended September 30, 2022, net income was **$170 thousand** compared to **$120 thousand** in the prior year period, with revenue increasing to **$155 thousand** from **$76 thousand**, including **$79 thousand** in management fees[39](index=39&type=chunk) - Other income for the nine months of 2022 was **$130 thousand**, which included **$62 thousand** from the collection of a previously reserved investment and a **$68 thousand** gain on the sale of equipment[40](index=40&type=chunk) [Other Disclosures (Forward Looking Statements, Inflation, Environmental)](index=10&type=section&id=Other%20Disclosures) This section contains a standard "Safe Harbor" statement regarding forward-looking statements, noting that inflation has not historically had an adverse effect, and environmental assessments have not revealed any material liabilities - The company has not historically experienced adverse effects from inflation on operating expenses, but there is no assurance that it can offset future inflationary pressures by increasing rental rates[42](index=42&type=chunk) - Environmental assessments have not revealed any environmental liability that would have a material adverse effect on the company's business, assets, or results of operations[43](index=43&type=chunk) [Quantitative and Qualitative Disclosures about Market Risk](index=10&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) This section is included by title only and does not contain any substantive quantitative or qualitative disclosures regarding the company's exposure to market risk - The report includes the heading for this item but provides no specific disclosures about market risk[44](index=44&type=chunk) [Controls and Procedures](index=11&type=section&id=Item%204.%20Controls%20and%20Procedures) Based on an evaluation as of September 30, 2022, the company's management, including the Principal Executive Officer and Principal Financial Officer, concluded that its disclosure controls and procedures are effective, with no material changes in internal control over financial reporting during the most recent fiscal quarter - The Principal Executive Officer and Principal Financial Officer concluded that the company's disclosure controls and procedures were effective to provide reasonable assurance that required information is properly recorded and reported[45](index=45&type=chunk) - There were no changes in internal control over financial reporting during the most recent fiscal quarter that materially affected, or are reasonably likely to materially affect, internal controls[46](index=46&type=chunk) [PART II: OTHER INFORMATION](index=12&type=section&id=PART%20II%3A%20OTHER%20INFORMATION) [Exhibits](index=12&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Form 10-Q, including corporate governance documents and required certifications by the Principal Executive Officer and Chief Financial Officer, specifically Exhibit 31.1 and Exhibit 32.1 - The report includes as exhibits the CEO/CFO certifications required by Rule 13a-14 (Exhibit 31.1) and 18 U.S.C. §1350 (Exhibit 32.1)[48](index=48&type=chunk) [Signatures](index=13&type=section&id=Signatures) [Signatures and Certifications](index=13&type=section&id=Signatures%20and%20Certifications) The quarterly report was signed on November 9, 2022, by Gene S. Bertcher, in his capacity as Principal Executive Officer, President, and Chief Financial Officer, with his certifications affirming the accuracy and completeness of the financial information presented - The report was signed on November 9, 2022, by Gene S. Bertcher, Principal Executive Officer, President and Chief Financial Officer[50](index=50&type=chunk) - The CEO/CFO certifies that the report fairly presents the financial condition and results of operations and that disclosure controls and procedures are effective[51](index=51&type=chunk)[55](index=55&type=chunk)

PART I: FINANCIAL INFORMATION [Item 1. Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) This section presents the unaudited consolidated financial statements for New Concept Energy, Inc. and its subsidiaries, including balance sheets, statements of operations, cash flows, and changes in stockholders' equity, along with accompanying notes detailing the basis of presentation, nature of operations, significant accounting policies, liquidity, contingencies, and subsequent events [Consolidated Balance Sheets](index=3&type=section&id=Consolidated%20Balance%20Sheets) Presents the Company's financial position, including assets, liabilities, and equity, as of March 31, 2022, and December 31, 2021 | Metric | March 31, 2022 (Unaudited, in thousands) | December 31, 2021 (Audited, in thousands) | | :---------------------- | :------------------------- | :-------------------------- | | Total Assets | $4,496 | $4,455 | | Total Current Assets | $3,856 | $3,812 | | Cash and Cash Equivalents | $254 | $252 | | Total Current Liabilities | $96 | $60 | | Total Shareholders' Equity | $4,400 | $4,395 | [Consolidated Statements of Operations](index=5&type=section&id=Consolidated%20Statements%20of%20Operations) Details the Company's revenues, expenses, and net income (loss) for the three months ended March 31, 2022 and 2021 | Metric (amounts in thousands) | Three Months Ended March 31, 2022 | Three Months Ended March 31, 2021 | | :---------------------------- | :-------------------------------- | :-------------------------------- | | Total Revenues | $45 | $26 | | Operating (loss) | $(47) | $(66) | | Earnings (loss) applicable to common shares | $5 | $79 | | Net income (loss) per common share-basic and diluted | $0.01 | $0.01 | - Total revenues increased to **$45,000** in Q1 2022 from **$26,000** in Q1 2021, driven by new management fees[12](index=12&type=chunk) - Net income decreased significantly from **$79,000** in Q1 2021 to **$5,000** in Q1 2022, primarily due to a **$91,000** tax refund recorded in the prior year[12](index=12&type=chunk)[31](index=31&type=chunk) [Consolidated Statements of Cash Flows](index=6&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Summarizes the Company's cash inflows and outflows from operating, investing, and financing activities | Metric (amounts in thousands) | Three Months Ended March 31, 2022 | Three Months Ended March 31, 2021 | | :---------------------------- | :-------------------------------- | :-------------------------------- | | Net cash provided by (used in) operating activities | $2 | $25 | | Net cash provided by (used in) financing activities | $0 | $(9) | | Net increase (decrease) in cash and cash equivalents | $2 | $16 | | Cash and cash equivalents at end of period | $254 | $43 | - Net cash provided by operating activities decreased from **$25,000** in Q1 2021 to **$2,000** in Q1 2022[15](index=15&type=chunk) [Consolidated Statements of Changes in Stockholders' Equity](index=7&type=section&id=Consolidated%20Statements%20of%20Changes%20in%20Stockholders'%20Equity) Outlines changes in the Company's stockholders' equity, including net income and other comprehensive income, for the period | Metric (amounts in thousands) | December 31, 2021 | March 31, 2022 | | :---------------------------- | :---------------- | :------------- | | Total Stockholders' Equity | $4,395 | $4,400 | | Accumulated Deficit | $(59,236) | $(59,231) | - Total stockholders' equity increased slightly from **$4,395,000** at December 31, 2021, to **$4,400,000** at March 31, 2022, primarily due to net income[17](index=17&type=chunk) [Notes To Consolidated Financial Statements](index=8&type=section&id=Notes%20To%20Consolidated%20Financial%20Statements) Provides detailed explanations and disclosures supporting the consolidated financial statements, including accounting policies and contingencies - The financial statements are unaudited and prepared by management, reflecting all normal recurring adjustments[19](index=19&type=chunk)[20](index=20&type=chunk) - The Company's ability to meet cash obligations relies on current operations and collection of notes receivable, and it is evaluating new business opportunities[21](index=21&type=chunk)[24](index=24&type=chunk) - The Company owns approximately **190 acres** of land in West Virginia with four structures, leasing about **16,000 square feet** for **$101,000** per annum[22](index=22&type=chunk) - Effective January 1, 2022, the Company entered into a Consulting Management Agreement for oil and gas operations, providing services for a fee of **10%** of gross revenue[22](index=22&type=chunk) - Significant accounting policies involve estimates for depreciation, amortization, leases, revenue recognition, impairment, and real estate sales[23](index=23&type=chunk) - The full extent of the COVID-19 pandemic's negative impact on the global economy and the Company's business remains uncertain[25](index=25&type=chunk) - No subsequent events were reported through May 12, 2022[26](index=26&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=9&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section provides management's perspective on the Company's financial condition and operational results, highlighting critical accounting policies, liquidity, and a comparison of performance for the three months ended March 31, 2022, versus 2021, along with forward-looking statements, inflation, and environmental considerations [Critical Accounting Policies and Estimates](index=9&type=section&id=Critical%20Accounting%20Policies%20and%20Estimates) Discusses key accounting policies and estimates that require significant management judgment and impact financial reporting - The Company's financial statements rely on judgments and estimates, particularly for depreciation, amortization, leases, revenue recognition, impairment, and real estate sales[26](index=26&type=chunk)[27](index=27&type=chunk) [Doubtful Accounts](index=9&type=section&id=Doubtful%20Accounts) Explains the Company's policy and methodology for establishing allowances for uncollectible accounts receivable - Allowance for doubtful accounts is based on risk analysis of specific accounts, considering factors like age of receivable, payment history, and debtor financial condition[28](index=28&type=chunk) [Deferred Tax Assets](index=9&type=section&id=Deferred%20Tax%20Assets) Addresses the Company's deferred tax assets and the valuation allowance established against them - A **100%** valuation allowance was established against deferred tax assets at March 31, 2021, as management could not determine that the benefit would more likely than not be realized[29](index=29&type=chunk) [Liquidity and Capital Resources](index=9&type=section&id=Liquidity%20and%20Capital%20Resources) Analyzes the Company's ability to meet its short-term and long-term financial obligations and fund operations | Metric (amounts in thousands) | March 31, 2022 | | :---------------------------- | :------------- | | Current Assets | $3,856 | | Current Liabilities | $96 | | Cash and Cash Equivalents | $254 | - Cash and cash equivalents increased slightly from **$252,000** at December 31, 2021, to **$254,000** at March 31, 2022[30](index=30&type=chunk) [Results of Operations](index=9&type=section&id=Results%20of%20Operations) Compares the Company's financial performance for the three months ended March 31, 2022, and 2021 | Metric (amounts in thousands) | Three Months Ended March 31, 2022 | Three Months Ended March 31, 2021 | | :---------------------------- | :-------------------------------- | :-------------------------------- | | Net income from continuing operations | $5 | $79 | | Total Revenue | $45 | $26 | | Rent Revenue | $25 | $26 | | Management Fees | $20 | $0 | | Corporate General & Administrative Expenses | $80 | $74 | - Net income decreased significantly year-over-year, primarily due to a **$91,000** tax refund recorded in Q1 2021 that did not recur[30](index=30&type=chunk)[31](index=31&type=chunk) - Revenue increased due to **$20,000** in management fees in Q1 2022, offsetting a slight decrease in rental income[30](index=30&type=chunk) [Forward Looking Statements](index=10&type=section&id=Forward%20Looking%20Statements) Provides cautionary statements regarding future results, highlighting inherent risks and uncertainties - The report includes a 'Safe Harbor' statement, cautioning that future results may differ materially due to inherent risks and uncertainties[32](index=32&type=chunk) - Key risks include interest rate fluctuations, ability to obtain financing, demand, pricing, competition, construction delays, and managing costs[32](index=32&type=chunk) [Inflation](index=10&type=section&id=Inflation) Discusses the potential impact of inflation on the Company's revenues, costs, and financial performance - The Company's revenue from rents is highly dependent on market conditions, and principal costs include employee compensation and maintenance[33](index=33&type=chunk) - While the Company has not historically experienced adverse effects of inflation, there is no assurance it can offset future inflationary pressures by increasing rental rates[33](index=33&type=chunk) [Environmental Matters](index=10&type=section&id=Environmental%20Matters) Addresses the Company's compliance with environmental laws and any associated liabilities - Environmental assessments have not revealed any material adverse environmental liability, and the Company believes its properties comply with relevant laws[34](index=34&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 section addresses the Company's exposure to market risks, specifically focusing on interest rate risk [Interest Rate Risk](index=10&type=section&id=Interest%20Rate%20Risk) Examines the Company's exposure to fluctuations in interest rates and its impact on financial instruments - The Company has minimal exposure to changes in interest rates as nearly all its debt is financed at fixed rates[35](index=35&type=chunk) [Item 4. Controls and Procedures](index=10&type=section&id=Item%204.%20Controls%20and%20Procedures) Management, including the Principal Executive Officer and Principal Financial Officer, concluded that the Company's disclosure controls and procedures were effective as of March 31, 2022, and reported no material changes to internal control over financial reporting during the quarter - Disclosure controls and procedures were effective to provide reasonable assurance that required information is recorded, processed, summarized, and reported timely[36](index=36&type=chunk) - No material change in internal control over financial reporting occurred during the most recent fiscal quarter[37](index=37&type=chunk) [Item 6. Exhibits](index=11&type=section&id=Item%206.%20Exhibits) This section lists all exhibits filed with the Form 10-Q, including various corporate governance documents and certifications - Exhibits include Articles of Incorporation, Amendments, Bylaws, Certificates of Designations for Preferred Stock, and certifications[39](index=39&type=chunk) - Certifications pursuant to Rule 13a-14/15d-14 and 18 U.S.C. §1350 are filed herewith[39](index=39&type=chunk)[40](index=40&type=chunk) [Signatures](index=12&type=section&id=Signatures) The report was signed by Gene S. Bertcher, Principal Executive Officer and Chief Financial Officer, on May 12, 2022 - The report was duly signed on May 12, 2022, by Gene S. Bertcher, Principal Executive Officer, President, and Chief Financial Officer of New Concept Energy, Inc[41](index=41&type=chunk) [Certifications](index=13&type=section&id=Certifications) This section contains certifications from the Principal Executive Officer and Chief Financial Officer regarding the Form 10-Q's accuracy and compliance [Certification pursuant to Rule 13a-14 and 15d-14](index=13&type=section&id=Certification%20pursuant%20to%20Rule%2013a-14%20and%2015d-14) Gene S. Bertcher, as Principal Executive Officer and Chief Financial Officer, certified the accuracy of the Form 10-Q, the fair presentation of financial information, the effectiveness of disclosure controls, and the design of internal control over financial reporting, also disclosing any significant deficiencies or fraud - The report does not contain any untrue statement of a material fact or omit material facts, and financial statements fairly present the Company's condition, results, and cash flows[42](index=42&type=chunk) - Disclosure controls and procedures were designed and evaluated as effective, and internal control over financial reporting was designed to provide reasonable assurance[42](index=42&type=chunk) - Disclosed to auditors and the audit committee any significant deficiencies, material weaknesses, or fraud affecting financial reporting[43](index=43&type=chunk) [Certification pursuant to 18 U.S.C. § 1350](index=14&type=section&id=Certification%20pursuant%20to%2018%20U.S.C.%20%C2%A7%201350) Gene S. Bertcher, as President and Chief Financial Officer, certified that the Form 10-Q fully complies with SEC requirements and fairly presents the Company's financial condition and results of operations - The report fully complies with Section 13(a) or 15(d) of the Securities Exchange Act of 1934[44](index=44&type=chunk) - The information in the report fairly presents, in all material respects, the financial condition and results of operations of the Company[44](index=44&type=chunk)