UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-K
ANNUAL REPORT PURSUANT TO SECTION 13 OR 5(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the Year ended December 31 |
OR
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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. |
Nevada | 75-2399477 | |
(State or Incorporation or | ( Identification |
1603 LBJ Freeway Suite 800 Dallas, Texas | |||
75234 | |||
(972)407-8400 | |||
Securities registered pursuant to Section 12(b) of the Exchange Act:
Title of | Trading Symbol(s) | Name of each exchange on which registered |
Common Stock, | GBR | NYSE |
Securities registered pursuant to Section 12(g) of the Act:
NoneIndicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes [ ] ¨No [X]
Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act. Yes [ ] ¨No [X]
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes [X]x No [ ]
Indicate by check mark whether the registrant has submitted electronically and posted on its corporate website if any, every interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files) Yes [X] xNo [ ]
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a non-accelerated filer, or a smaller reporting company. See definition of "large“large, accelerated filer," "accelerated filer"” accelerated filer” and "smaller“smaller reporting company"company” in Rule 12b-2 of the Exchange Act. (Check one):
Large accelerated filer ¨ | Accelerated filer ¨ |
Non-accelerated filer¨ (Do not check if a smaller reporting Company) | Smaller reporting company x |
Emerging growth company ¨ |
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying
with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨
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Indicate by check mark whether the registrant has filed a report on and attestation to its management’s assessment of the effectiveness of its internal control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C. 7262(b)) by the registered public accounting fi rm that prepared or issued its audit report. ¨
If securities are registered pursuant to Section 12(b) of the Act, indicate by check mark whether the financial statements of the registrant included in the filing reflect the correction of an error to previously issued financial statements. ¨
Indicate by check mark whether any of those error corrections are restatements that required a recovery analysis of incentive-based compensation received by any of the registrant’s executive officers during the relevant recovery period pursuant to §240.10D-1(b). ¨
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act). Yes ¨Nox
The aggregate market value of the shares of voting and non-voting common equity held by non-affiliates of the Registrant, computed by reference to the closing price at which the common equity was last sold which was the sales price of the Common Stock on the NYSE MKTAmerican as of June 30, 20152023 (the last business day of the Registrant'sRegistrant’s most recently completed second fiscal quarter) was $1,626,000$4,559,000 based upon a total of 1,077,1823,736,999 shares held as of June 30, 20152023 by persons believed to be non-affiliates of the Registrant. The basis of the calculation does not constitute a determination by the Registrant as defined in Rule 405 of the Securities Act of 1933, as amended, such calculation, if made as of a date within sixty days of this filing, would yield a different value.
As of March 30, 2016,29, 2024, there were 1,946,935 shares of common stock outstanding.
DOCUMENTS INCORPORATED BY REFERENCE: NONE
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NEW CONCEPT ENERGY, INC. Index to Annual Report on Form 10-K Fiscal year ended December 31, NEW CONCEPT ENERGY, INC. Forward-Looking Statements Certain statements in this Form 10-K are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, and Section 21E of the Securities Exchange Act of 1934. The words PART I Item 1. Business New Concept Energy, Inc. Real Estate Operations The Company owns approximately 190 acres of land located in Parkersburg, West Virginia. Located on the land are four structures totaling approximately 53,000 square feet. Of this total area the main industrial / office building contains approximately 24,800 square feet of which as of December 31, 2023 approximately 16,000 of industrial area is leased for $100,000 per annum. Oil and Gas Operations In August 2020, the Company Effective 1/1/2022 the Business Strategy The Company is a Nevada The Company intends to continue to Insurance The Company currently maintains property and liability insurance intended to cover claims Employees At December 31, Management is not aware of any non-compliance by the Company as regards applicable regulatory requirements that would have a material adverse effect on the Available Information The Company maintains an internet website at www.newconceptenergy.com. The Company has available through the website, free of charge, Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K, reports filed pursuant to Section 16 of the Securities Exchange Act of 1934 (the Item 1A. Risk Factors Risks Related to the Company An investment in our securities involves Our governing documents contain anti-takeover provisions that may make it more difficult for a third party to acquire control of us. Item 1B. Unresolved Staff Comments Not applicable. Item 1C. Cybersecurity We rely on the information technology and systems maintained by Pillar Income Asset Management, Inc. (“Pillar”), an entity which provides a number of services to the Company, and we rely on Pillar and its’ personnel to identify and manage material risks from cybersecurity threats. Pillar takes various actions, and incurs significant costs, to maintain and manage the operation and security of information technology and systems, including the data maintained in those systems. We believe that Pillar’s Director of Information Technology and his associates endeavor to evaluate and address cyber risks in alignment with our business objectives, operational needs and industry-accepted standards, such as the National Institute of Standards and Technology (“NIST”) and CIS Critical Security Controls frameworks. Since we rely on accounting, financial, operational, management and other information systems, including the Internet and third-party hosted services to conduct our operations, store personal and sensitive data, process financial information and results of operations for internal reporting purposes and comply with financial reporting, legal and tax requirements, we have processes and procedures in place to monitor the prevention, detection, mitigation and remediation of cybersecurity risks. These include, but are not limited to (i) maintaining a defined and practiced incident response plan; (ii) employing appropriate incident prevention and detection safeguards; (iii) maintaining a defined disaster recovery policy and employing disaster recovery software, where appropriate; (iv) educating, training and testing our user community on information security practices and identification of potential cybersecurity risks and threats; and (v) reviewing and evaluating new developments in the cyber threat landscape. Recognizing the complexity and evolving nature of cybersecurity risk, we engage with a range of external support in evaluating, monitoring and testing our cybersecurity management systems and related cyber risks. We do not believe we are reasonably likely to be materially affected from cybersecurity threats. Item 2. Properties The The Company Item 3. Legal Proceedings Currently the Company PART II Item 5. Market for Market Information The common stock of the Company is listed and traded on the NYSE On March Dividends The Company paid no dividends on its Common Stock in Purchases of Equity Securities The Board of Directors has not authorized the repurchase of any shares of its Common Stock under any share repurchase Item 6. Selected Financial Data Optional and not included. Item 7. Overview The Critical Accounting Policies and Estimates The Deferred Tax Assets Significant management judgment is required in determining the provision for income taxes, deferred tax assets and liabilities and any valuation allowance recorded against net deferred tax assets. The future recoverability of the Liquidity and Capital Resources At December 31, Cash and cash equivalents totaled Results of Operations Fiscal 2023 as compared to 2022 Revenues: Revenues from rent for the leased property was $101,000 in 2023 and 2022. Revenues from managing the oil and gas operations Operating Expenses: Operating expenses for the real estate property was $57,000 in 2023 and 2022. General and administrative expenses were $338,000 in 2023 and $317,000 in 2022. Interest Income:Interest Income was $222,000 in 2023 and $212,000 in 2022. Other Income:Other income was $131,000 in 2022. Included in other income for 2022 is $63,000 which represents the collection of an investment that had previously been fully reserved and a gain of $68,000 from Fiscal Revenues: Operating Expenses: Operating expenses for the real estate property was $57,000 in Interest Income:Interest Income was $212,000 in 2022 as compared to Other Income Item 7a: Quantitative and Qualitative Disclosures about Market Risk As of Item 8. Financial Statements The consolidated financial statements required by this Item begin at page Item 9. Changes In and Disagreements with Accountants on Accounting and Financial Disclosure None. Item 9A. Controls and Procedures Evaluation of Disclosure Controls and Procedures Based on an evaluation by our management (with the participation of our Principal Executive Officer and Principal Financial Officer), as of the end of the period covered by this report, our Principal Executive Officer and Principal Financial Officer concluded that our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended (the There has been no change in our internal control over financial reporting (as defined in Exchange Act Rule 13a-15(f)) during the most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting. Management’s Report on Internal Control over Financial Reporting Our management is responsible for establishing and maintaining adequate internal control over financial reporting for the Company. Our internal control over financial reporting is designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements in accordance with generally accepted accounting principles. There are inherent limitations to the effectiveness of any system of internal control over financial reporting. These limitations include the possibility of human error, the circumvention of overriding of the system and reasonable resource constraints. Because of its inherent limitations, our internal control over financial reporting may not prevent or detect misstatements. Projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions or that the degree of compliance with policies or procedures may deteriorate. Management assessed the effectiveness of the This annual report does not include an attestation report of the Changes in Internal Control over Financial Reporting In preparation for Item 9B. Other Information Not PART III Item 10. Directors, Executive Officers and Corporate Governance Directors The affairs of the Company are managed by the Board of Directors. The directors are elected at the Annual Meeting of Stockholders or appointed by the incumbent Board and serve until the next Annual Meeting of Stockholders, until a successor has been elected or approved, or until earlier resignation, removal or death. It is the The Company has adopted a code of conduct that applies to all directors, officers and employees, including our principal executive officer, principal financial officer and principal accounting officer. Stockholders may find our Code of Conduct on our internet website address at http://www.newconceptenergy.com. We will post any amendments to the Code of Conduct as well as any waivers that are required to be disclosed by the rules of the SEC or the NYSE Our Board of Directors has adopted charters for our Audit, Compensation and Governance and Nominating Committees of the Board of Directors. Stockholders may find these documents on our website by going to the website address http://www.newconceptenergy.com. Stockholders may also obtain a printed copy of the materials referred to by contacting us at the following address: New Concept Energy, Inc. Attn: Investor Relations 1603 LBJ Freeway, Suite Dallas, Texas 75234 972-407-8400 (Telephone) The Audit Committee of the Board of Directors is an All members of the Audit Committee, Compensation Committee and the Governance and Nominating Committee must be independent directors. Members of the Audit Committee must also satisfy additional independence requirements which provide (i) that they may not accept, directly or indirectly, any consulting, advisory or compensatory fee from the Company or any of its subsidiaries other than their The current directors of the Company are listed below, together with their ages, terms of service, all positions and offices with the Company, their principal occupations, business experience and directorships with other companies during the last five years or more. The designation Raymond D. Roberts, age Mr. Roberts is Gene S. Bertcher, age Mr. Bertcher was elected President and Chief Financial Officer effective November 1, 2004. He was elected Chairman and Chief Executive Officer in December 2006. Mr. Bertcher has been Chief Financial Officer and Treasurer of the Company since November 1989 and Executive Vice President from November 1989 until he was elected President. Dan Locklear, age Mr. Locklear has been Chief Financial Officer of Sunridge Management Group, a real estate management company, for more than five years. Mr. Locklear was formerly employed by Johnstown Management Company, Inc. and Trammel Crow Company. Mr. Locklear has been a certified public accountant since 1981 and a licensed real estate broker in the State of Texas since 1978. Richard W. Humphrey, age Mr. Humphrey has been, for more than the past five years, Vice President of Regis Realty Prime, LLC, involved in sales and acquisitions of real estate properties. Mr. Humphrey received from Southern Methodist University Cox School of Business both a Bachelor of Business Administration and Master of Business Administration degree with emphasis in real estate. From 1976 to 1979, he was also a part-time faculty member at Southern Methodist University Cox School of Business in Dallas, teaching real estate classes in undergraduate and graduate school. Regis Realty Prime, LLC and its predecessors are affiliated with Realty Advisors, Inc. ("RAI"). Cecilia Maynard, age 71, (Independent) Director since Ms. Maynard was employed by Pillar Income Asset Management, Inc. Board Committees The Board of Directors held The Board of Directors has standing Audit, Compensation and Governance and Nominating Committees. The Audit Committee was formed on December 12, 2003, and its function is to review the The Governance and Nominating Committee is responsible for developing and implementing policies and practices relating to The Board has also formed a Compensation Committee of the Board of Directors, adopted a Charter for the Compensation Committee on October 20, 2004, The members of the Board of Directors at the date of this Report and the Committees of the Board on which they serve are identified below: Executive Officers The following person currently serves as the sole executive officer of the Company: Gene S. Bertcher, Chairman of the Board, President, Chief Executive Officer and Treasurer. His position with the Company is not subject to a vote of stockholders. His age, term of service and all positions and offices with the Company, other principal occupations, business experience and directorships with other companies during the last five years or more are listed under the caption In addition to the foregoing Code of Ethics The Board of Directors has adopted a code of ethics entitled Section 16(a) Beneficial Ownership Reporting Compliance Based solely upon a review of Forms 3, 4 and 5 Item 11. Executive Compensation The following tables set forth the compensation in all categories paid by the Company for services rendered during the fiscal years ended December 31, SUMMARY COMPENSATION TABLE GRANTS OF PLAN-BASED AWARDS None OUTSTANDING EQUITY AWARDS AT FISCAL YEAR-END None OPTION EXERCISES AND STOCK VESTED None PENSION BENEFITS None NONQUALIFIED DEFERRED COMPENSATION None Fees Earned Or Paid in Cash Stock Awards Option Awards Non-Equity Incentive Plan Compensation Change in Pension Value and Nonqualified Deferred Compensation Earnings All Other Compensation MANAGEMENT AND CERTAIN SECURITY HOLDERS None Compensation of Directors The Company pays each non-employee director a fee of $2,500 per year, plus a meeting fee of $2,000 for each board meeting attended. Employee directors serve without compensation. Item 12. Security Ownership of Certain Beneficial Owners The following table sets forth Name and Address of Beneficial Owner Amount and Nature of Beneficial Ownership Approximate Percent of Class * Realty Advisors, Inc. 27.18% Security Ownership of Management The following table sets forth the ownership of * Beneficial Ownership means the sole or shared power to vote, or to direct the voting of, a ** Item 13. Certain Relationships and Related Transactions, and Director Independence Beginning in 2011 Pillar became the Except as set forth above, the Reporting Persons do not have any contracts, arrangements, understandings or relationships, legal or otherwise, with any person with respect to any securities of the Issuer, including but not limited to, transfer or voting of any of the securities, It is the policy of the Company that all transactions between the Company and any officer or director, or any of their affiliates, must be approved by See Item 10. Directors, Executive Officers and Corporate Governance for information on the independence of Directors and the standards of the NYSE American Exchange. Item 14. Principal Accounting Fees and Services The following table sets forth the aggregate fees for professional services rendered to the Company for the years All services rendered by the principal auditors are permissible under applicable laws and regulations and were pre-approved by either of the Board of Directors or the Audit Committee, as required by law. The fees paid to principal auditors for services described in the above table fall under the categories listed below: Audit Fees: Audit-Related Fees: Tax Fees: All Other Fees: These services are actively monitored (as to both spending level and work content) by the Audit Committee to maintain the appropriate objectivity and independence in the principal Financial Information Systems Design and Implementation Fees Under the Sarbanes-Oxley Act of 2002 (the PART IV Item 15. INDEX TO FINANCIAL STATEMENTS FINANCIAL STATEMENT Optional and not included herein. Your Vision Our Focus Report of Independent Registered Public Accounting Firm Board of Directors and Shareholders New Concept Energy, Inc. Opinion on the Financial Statements We have audited the accompanying consolidated balance sheets of New Concept Energy, Inc. The financial statements of New Concept Energy, Inc. & Subsidiaries as of December 31, Basis for Opinion These We conducted our Our audit Critical Audit Matters Critical audit matters are matters arising from the current period audit of the financial statements that were communicated or required to be communicated to the audit committee and that: (1) relate to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective, or complex judgments. We determined that there are no critical audit matters. /s/ Turner, Stone & Company, L.L.P. We have served as New Concept Energy, Inc. & Subsidiaries’ auditor since 2024. Dallas, Texas March 29, 2024 REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM To the shareholders and the board of directors of New Concept Energy, Inc. Dallas, Texas Opinion on the Financial Statements We have audited the accompanying consolidated balance sheets of New Concept Energy, Inc., and Subsidiaries (the Company) as of December 31, 2022, and the related consolidated statements of operations, stockholders’ equity, and cash flows for each of the years in the two-year period ended December 31, 2022, and the related notes and schedules collectively referred to as the financial statements. In our opinion, the Basis for Opinion These financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on the Company’s financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (“PCOAB”) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB. We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits, we are required to obtain an understanding of internal control over financial reporting, but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control over financial reporting. Accordingly, we express no such opinion. Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion. Critical Audit Matters The critical audit matters communicated below are matters arising from audit of the December 31, 2022, financial statements that were communicated or required to be communicated to the audit committee and that: (1) relate to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective, or complex judgments. The communication of critical audit matters does not alter in any way our opinion on the financial statements, taken as a whole, and we are not, by communicating the critical audit matters below, providing separate opinions on the critical audit matters or on the accounts or disclosures to which they relate. Transactions with and Balances Due from Related Parties Description of the Matter - The Company has significant transactions with and balances due from related parties. The Company performs an assessment as to whether substantially all the amounts due under these receivables are deemed probable of collection. When the Company concludes that it is not probable that it will collect amounts, the Company creates an allowance for the amount not probable of the collection. Auditing the Company’s collectability assessment is complex due to the judgment involved in the Company’s determination of the collectability of these receivables. The determination involves consideration of the terms of the receivable, whether the receivable is currently performing, and any security for the receivable. How We addressed the Matter in Our Audit - We obtained an understanding of the Company’s controls over related party receivables and their collectability assessment. Our testing included, among other things, confirmation of the receivables, reviewing selected financial information of the related parties, reviewing subsequent collections and evaluating transaction documentation. The relevant financial statement accounts are notes and interest receivable from related parties, and accounts payable to related parties and interest income from related parties. Emphasis of Related Party Transactions As described in Swalm & Associates, P.C. Richardson, Texas March 20, 2023 We have served as the Company’s auditor for the years 2008 through 2023. NEW CONCEPT ENERGY, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (amounts in thousands) The accompanying notes are an integral part of these consolidated financial statements. NEW CONCEPT ENERGY, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS - CONTINUED (amounts in thousands, except share amounts) The accompanying notes are an integral part of these consolidated financial statements. NEW CONCEPT ENERGY, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (amounts in thousands, except per share data) The accompanying notes are an integral part of these consolidated financial statements. NEW CONCEPT ENERGY, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY (amounts in thousands) The accompanying notes are an integral part of these consolidated financial statements. NEW CONCEPT ENERGY, INC AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (amounts in thousands) The accompanying notes are an integral part of these consolidated financial statements. New Concept Energy Inc. and Subsidiaries NOTES TO CONSOLIDATED FINANCIAL STATEMENTS NOTE A – BUSINESS DESCRIPTION AND PRESENTATION The Company In August 2020, the Company sold its The Company’s ability to meet current cash obligations relies on cash received from operations and the NOTE B - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES A summary of the significant accounting policies applied in the preparation of the accompanying consolidated financial statements follows: Principles of Consolidation The consolidated financial statements include the accounts of New Concept Energy, Inc. and its majority-owned subsidiaries (collectively, the Property and Property and equipment are recorded at cost. Depreciation is provided Depreciation Revenue Recognition The Company Use of Estimates In preparing financial statements in conformity with accounting principles generally accepted in the United States of America, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the consolidated financial statements and revenues and expenses during the reporting period. Actual results could differ from those estimates. Cash Equivalents The Company considers all short-term deposits and money market investments with a maturity of less than three months to be cash equivalents. Impairment of Notes Receivable Notes receivable are identified as impaired when it is probable that interest and principal will not be collected according to the contractual terms of the note agreements. The accrual of interest is discontinued on such notes, and no income is recognized until all past due amounts of principal and interest are recovered in full. Impairment of Long-Lived Assets The Company reviews its long-lived assets and certain identifiable intangibles for impairment when events or changes in circumstances indicate that the carrying amount of the assets may not be recoverable. In reviewing recoverability, the Company estimates the future cash flows expected to result from the use of the assets and eventually disposing of them. If the sum of the expected future cash flows (undiscounted and without interest charges) is less than the carrying amount of the asset, an impairment loss is recognized based on the The Company determines the fair value of assets to be disposed of and records the asset at the lower of fair value less disposal costs or carrying value. Assets are not depreciated while held for disposal. Sales of Real Estate Gains on sales of real estate are recognized to the extent permitted by Accounting Standards Codification Topic 360-20, Income Taxes The Company accounts for income taxes in accordance with Accounting Standards Codification, NOTE C – Commencing in February 2008, three publicly traded entities needed a chief financial officer, American Realty Investors, Inc. (“ARL”), Transcontinental Realty Investors, Inc. (“TCI”) and Income Realty Advisors, Inc., (“RAI”) is a Beginning in 2011 Pillar Income Asset Management NOTE D Note Receivable is comprised of the following NOTE E – FIXED ASSETS Land, building and furniture, fixtures and equipment are recorded at cost incurred to acquire the assets. At December 31, 2023 and 2022, fixed assets are as NOTE F – We account for income taxes under The At December 31, The Company has no assurance as to if and when the benefit of NOL carryforwards will be realized, therefore, a valuation allowance on the related deferred tax assets has been recorded. Forms 1120, U.S, Corporation Income Tax Returns, for the years ending December 31, The following table presents the principal reasons for the difference between the Company's effective tax rate and the United States statutory income tax rate. NOTE Outstanding Preferred Stock Preferred stock consists of the following (amounts in thousands): The Series B preferred stock has a liquidation value of $100 per share. The right to convert expired April 30, 2003. Dividends at a rate of 6% are payable in cash or preferred shares at the option of the Company. NOTE The Company maintains its cash balances at financial institutions that participate in the NOTE The following table reconciles the segment information to the corresponding amounts in the Consolidated Statements of NOTE The table below reflects the NOTE The The following documents are filed as exhibits (or are incorporated by reference as indicated) into this Report: *Filed herewith. SIGNATURES Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the Company has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons in the capacities and on the dates indicated. /s/ Gene S. Bertcher Gene S. Bertcher /s/ Raymond D Roberts Raymond D Roberts /s/ Richard W Humphrey /s/ Dan Locklear Dan Locklear /s/ Cecilia Maynard 3420153 2"estimate", "plan", "intend", "expect", "anticipate", "and believe"“estimate,” “plan,” “intend,” “expect,” “anticipate,” “and believe” and similar expressions are intended to identify forward-looking statements. These forward-looking statements are found at various places throughout this Report and in the documents incorporated herein by reference. New Concept Energy, Inc. disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Although we believe that our expectations are based upon reasonable assumptions, we can give no assurance that our goals will be achieved. Important factors that could cause our actual results to differ from estimates or projections contained in any forward-looking statements are described under Item 1A. Risk Factors beginning on page 5."“New Concept", "NCE"Concept,” “NCE” or the "Company"“Company” or "we"“we” or "us"“us”) was incorporated in Nevada on May 31, 1991, under the name Medical Resource Companies of America, Inc. The Company is the successor-by-merger to Wespac Investors Trust, a California business trust that began operating in 1982. On March 26, 1996, the name was changed to Greenbriar Corporation. On February 8, 2005, the name of the Company was changed to CabelTel International Corporation. On May 21, 2008, the name of the company was changed to New Concept Energy, Inc.Thethroughsold its wholly owned subsidiaries Mountaineer State Energy, Inc. and Mountaineer State Operations, LLC, owns and operates oil and gas wells and mineral leases in Athens and Meigs Countieswhich were located in Ohio and in Calhoun, Jackson and Roane Counties in West Virginia. The majority of our oil & gas operation was acquired throughacquisitioncompany entered into a Consulting Management Agreement with the current owner of the Carl E. Smith Companies in 2008. As of December 31, 2015oil and gas wells whereby the Company has 153 producing gaswill receive 10% of the revenue received from these wells 31 non-producing wellsin exchange for providing advisory, accounting and related equipment and mineral leases covering approximately 20,000 acres.Retirement CommunityCompany leases and operates Pacific Pointe Retirement Inn ("Pacific Pointe") in King City, Oregon. Pacific Pointe, a retirement center, has a capacity of 114 residents and provides community living with basic services such as meals, housekeeping, laundry, 24/7 staffing, transportation and social and recreational activities. Our residents do not yet need assistance or support with activities of daily living but preferagreement can be terminated by either party after providing 60 days’ notice to the physical and psychological comfort of a residential community of like-minded people and access to senior-oriented services.corporation which owns and operates oil and gas wells in Ohio and West Virginia.pursue acquisition of undervaluedoperate and or distressedsell its West Virginia property. The Company is providing advisory and management services for an independent West Virginia oil and gas related businesses, as well as additional acquisitions of oil and gas leases.company. The Company may chooseseeks to developestablish or resell the acquired acreage as management deems most beneficial to the Company. The Company's strategy is dependent on available financing as well as the market price for oil and gas.The Company intends to maintain its interest in the retirement center it currently operates, however, management has no current intentions to own or operate any additional retirement facilities.infor its oil and gas operations, retirement communityreal estate and corporate operations. The provision of personal services entails an inherent risk of liability compared to more institutional long-term care communities. The Company also carries property insurance on each of its owned and leased properties, as appropriate.32015,2023, the Company employed in all segments, 46the services of 3 people (26 full-time and 20 part-time).with the remainder of the work contracted to third parties. The Company believes it maintains good relationships with its employees. None of the Company'sCompany’s employees are represented by a collective bargaining group.The Company's operations are subject to the Fair Labor Standards Act. Many of the Company's employees are paid at rates related to the minimum wage and any increase in the minimum wage will result in an increase in labor costs.Company'sCompany’s financial condition or results of operations.4 Quality AssuranceEnergy Philosophy – The Company is committed to the preservation and enhancement of the environment in which we operate. We are philosophically and operationally focused to continually prioritize the sensitivity of our ecological system in which we develop resources for our generation as well as our children's. Management's legacy is to prove that the energy industry can develop the earth's natural resources with clean and efficient technologies while preserving its fragile beauty. Our technologies directly and significantly reduce the impact of our operations on nature and wildlife by minimizing surface disturbance.Retirement Center Philosophy – The Company's philosophy of management is to demonstrate by its actions and require from its employees high standards of personal integrity, to develop a climate of openness and trust, to demonstrate respect for human dignity in every circumstance, to be supportive in all relationships, to promote teamwork by involving employees in the management of their own work and to promote the free expression of ideas and opinions. In operating a retirement community, our commitment to quality assurance is designed to achieve a high degree of resident and family member satisfaction with the care and services the Company provides.Regular Property Inspections – Property inspections are conducted by corporate personnel. These inspections cover the appearance of the exterior and grounds, the appearance and cleanliness of the interior, the professionalism and friendliness of staff and notes on maintenance.MarketingThe Company's sell its oil and natural gas production to a limited number of purchasers. While there is an available market for crude oil and natural gas production, we cannot be assured that the loss of these purchasers would not have a material impact on the Company. Further a reduction in the market price for oil and gas will have a negative effect on the Company's financial position.At Pacific Pointe, the Company's marketing and sales efforts are undertaken at the local level. These are intended to create awareness of our property and its services among prospective residents, their families and other key referral sources. The property engages in traditional types of marketing activities such as special events, radio spots, direct mailings, print advertising, signs and yellow page advertising. These marketing activities and media advertisements are directed to potential customers.Government RegulationManagement is not aware of any non-compliance by the Company of applicable regulatory requirements that would have a material adverse effect on the Company's financial condition or results of operations.CompetitionThe oil and natural gas industry is highly competitive. We encounter strong competition from other independent operators and from major oil companies in acquiring properties, contracting for drilling equipment and securing trained personnel. Many of these competitors have financial and technical resources and personnel substantially larger than ours. As a result, our competitors may be able to pay more for desirable leases, or to evaluate, bid for and purchase a greater number of properties or prospects than our financial or personnel resources will permit.We are also affected by competition for drilling rigs and the availability of related equipment. In the past, the oil and natural gas industry has experienced shortages of drilling rigs, equipment, pipe and personnel, which has delayed development drilling and other exploitation activities and has caused significant price increases. We are unable to predict when, or if, such shortages may again occur or how they would affect our development and exploitation program.4Competition is also strong for attractive oil and natural gas producing properties, undeveloped leases and drilling rights, and we cannot assure you that we will be able to compete satisfactorily. Many large oil companies have been actively marketing some of their existing producing properties for sale to independent producers. We regularly evaluate acquisition opportunities and submit bids as part of our growth strategy.Our retirement community is in a highly competitive environment which and will continue to become increasingly competitive in the future. The Company competes with other retirement companies and numerous other companies providing similar long-term care alternatives, such as home healthcare agencies, community-based service programs and convalescent centers (nursing homes)."Exchange Act"“Exchange Act”) and amendments to those reports as soon as rea-sonablyreasonably practicable after we electronically file or furnish such materials to the Securities and Exchange Commission. In addition, the Company has posted the charters for our Audit Committee, Compensation Committee and Governance and Nominating Committee, as well as our Code of Business Conduct and Ethics, Corporate Governance Guidelines on Director Independence and other information on the website. These charters and principles are not incorporated in this Report by reference. The Company will also provide a copy of these documents free of charge to stockholders upon request. The Company issues Annual Reports containing audited financial statements to its common stockholders.variouscertain risks. An investor should carefully consider the following risk factors in conjunction with the other information in this report before trading our securities.The oil & gas industry is highly competitive. Competition for leasehold interests, subcontractors and qualified employees are keen and we are competing against companies that are larger, more experienced and better capitalized than we are.The oil & gas industry faces exposure from changes in oil and gas prices due to market fluctuations beyond the Company's control.● the requirement of an 80% vote to make, adopt, alter, amend, change or repeal our Bylaws or certain key provisions of the Articles of Incorporation that embody, among other things, the anti-takeover provisions; ● the so-called business combination "control act"“control act” requirements involving the Company and a person that beneficially owns 10% or more of the outstanding common stock except under certain circumstances; and● the requirement of holders of at least 80% of the outstanding Common Stock to join together to request a special meeting of stockholders. As of March 30, 2016 a group of entities owned and controlled approximately 46% of the Company's outstanding common stock. This group has significant voting power to block any attempted change in control – See Item 12 – Security Ownership of Certain Beneficial Owners and Management and Related Shareholder Matters.5 5Company'sCompany’s principal offices are located at 1603 LBJ Freeway Suite 300,800, Dallas, Texas 75234. The Company believes this space is presently suitable, fully utilized and will be adequate for the foreseeable future.Retirement Communityunder a long term lease operates Pacific Pointe Retirement Inn ("Pacific Pointe") in King City, Oregon. Pacific Pointe began operations in 1993, has a capacity of 114 residents and provides community living with basic services such as meals, housekeeping, laundry, 24/7 staffing, transportation and social and recreational activities. These residents do not yet need assistance or support with activities of daily living but prefer the physical and psychological comfort of a residential community of like-minded people and access to senior-oriented services.The Company's retirement community is suitable, fully utilized and adequate for the purpose to which it is devoted.The average occupancy and lease rate per resident for our one retirement facility is as follows: Average Average Occupancy Monthly Rate December 2015 88.91 $ 2,507 December 2014 85.5 $ 2,235 December 2013 90.0 $ 2,290 December 2012 92.1 $ 2,225 December 2011 90.5 $ 2,191 Oil and GasReserve EstimationThe Company's producing properties have been in production for over 20 years. Because individual well production volumes were not available, composite production decline curves were constructed for each of the five counties in which these wells are located. All five composite decline curves exhibit well-established production decline trends. After reviewing all available information, it was determined that the most reliable method of estimating the Proved Developed Producing Reserves was by extrapolation of the existing production decline trends to the economic limit of production.Proved Undeveloped Reserves were estimated by analogy to currently producing wells in the various areas producing from the same formations.The Company's reserve reports are prepared by independent petroleum engineers. The process used to control the information provided to the independent petroleum engineers includes an initial compilation of production data by experienced senior management personal in the Company's field office. This data is independently reviewed by appropriate personal in the Company's corporate office prior to being submitted to the independent petroleum engineer. The submitted data is ultimately compared to the final reserve report and then agreed to the financial statement disclosures prepared by the Company.The Company uses the petroleum engineering firm of Lee Keeling and Associates, Inc. to prepare its reserve estimates and future net revenues from its oil and gas properties. The work is performed by a registered professional engineer who is a member of the Society of Petroleum Engineers with over 40 years of experience in the oil and gas industry. According to our independent reserve engineering firm, Lee Keeling & Associates, Inc. as of December 31, 2015, our Proved Reserves in Ohio and West Virginia wereowns approximately 2.6 million Mcf of natural gas and 59 thousand Bbls of oil. Of the total Proved Reserves, approximately 20% were Proved Developed Reserves. As of December 31, 2015, the related PV-10 of our Proved Reserves was approximately $5.9 million from Ohio & West Virginia.6Additional Oil and Gas InformationProduction 2015 – 161,000 Mcf of natural gas and 7,600 Bbls of oil 2014 – 159,000 Mcf of natural gas and 10,459 Bbls of oil 2013 - 194,000 Mcf of natural gas and 12,404 Bbls of oilAverage sales price per unit 2015 - $4.23 per Mcf and $44.87 per Bbls2014 - $4.23 per Mcf and $90.82 per Bbls2013 - $4.23 per Mcf and $96.00 per BblsProductive wells2015 – 1532014 – 1532013 – 152Developed acreage – approximately 20,000 acresDrilling activity – The Company acquired the operations in Ohio and West Virginia in October 2008 and has, for the most part, focused on improving production from wells. Since the acquisition the Company has drilled 15 wells.Development planIn September 2008, the Company through its acquisition of Carl E. Smith, Inc. (now known as Mountaineer State Energy, Inc.) acquired 20,000190 acres of mineral rightsland located in Ohio andParkersburg, West Virginia. The 20,000 acres are both surrounded and interspersed of hundreds of existing wells of which 138 producing wells were owned by the Company and other non-related entities owned the rest of such wells. The entire area has pipelines in place and decades of information regarding reserves.In connection with the acquisition, the Company formulated a development plan to rework existing wells, to improve production using modern technology (both in Proved Developed and Proved Undeveloped Reserves), and to follow up with the drilling of new wells. The Company's plan is to use the current knowledge of the area and new technologies available to both rework its existing wells and drill new wells.The decision as to whether to rework existing wells or and or drill new wells is based upon a number of factors including the market price for both oil and gas. As of March 30, 2015 the Company has suspended expansion activity for its existing acreage until the price for both oil and gas improves from current levels.Proved ReservesThe following table presents our estimated Proved Reserves as of December 31, 2015. These estimates correspond with the method used in presenting the "Supplemental Information on Oil and Gas Operations" in Note N to our consolidated financial statements included in this report. Gas Oil (MMCF) (MBBLS) 480 42 24 17 2,100 - 2,604 59 7The following table presents the changes in our total proved undeveloped reserves. Gas Oil (MMCF) (MBBLS) Proved undeveloped reserves as of December 31, 2014 2,168 68 Revaluation of undeveloped reserves - - Conversion to proved developed reserves - Proved undeveloped reserves as of December 31, 2015 2,168 68 Well StatisticsThe following table sets forth our wells (all natural gas) as of December 31, 2015. Wells Gross (1) Net (2) 153 148 31 31 184 179 (1) Gross wells are the sum of all wells in which we own an interest.(2) Net wells are gross wells multiplied by our fractional working interestsLocated on the well.Acreage StatisticsThe following table sets forth our developed and undeveloped oil and gas lease and mineral acreage as of December 31, 2015. Acres Gross (1) Net (2) 19,375 19,375 - - 19,375 19,375 (1) Gross acresland are four structures totaling approximately 53,000 square feet. Of this total area the sum of all acres in which we own an interest.(2) Net acres are gross acres multiplied by our fractional working interests on the acreage.Carlton Energy Group, LLCIn December 2006, Carlton Energy Group, LLC ("Carlton") instituted litigation against an individual, Eurenergy Resources Corporation ("Eurenergy") and several other entities including(which was then known as CabelTel International Corporation) alleging tortuous conduct, breach of contract and other matters and as to the Company that it was the alter ego of Eurenergy. The Carlton claims were based upon an alleged tortuous interference with a contract by the individual and Eurenergy related to the right to explore a coal bed methane concessionis not involved in Bulgaria which had never (and has not to this day) produced a drop of hydrocarbons. At no time during the pendency of this project or since did the Company or any of its officers or directors have any interest whatsoever in the success or failure of the so-called "Bulgaria Project". However, in the litigation, Carlton alleged that the Company was the "alter-ego" of certain of the other Defendants including Eurenergy.8Following a jury trial in 2009, the Trial Court (295th District Court of Harris County, Texas) reduced the actual damages found by the jury of $66.5 million and entered judgment against EurEnergy and the individual jointly and severally for $31.12 million in actual damages on its tortuous-interference claim and the Court further assessed exemplary damages against The individual and EurEnergy in the amount of $8.5 million each. The Court granted a judgment for the Company finding that it was not the "alter ego" of any of the other parties and thereby would not incur any damages.Cross appeals were filed by Carlton, the individual and EurEnergy to the Court of Appeals for the First District of Texas (the "Court of Appeals") which rendered its opinion on February 14, 2012. The Court of Appeals opinion, among other things, reinstated the jury award of actual damages jointly and severely against the individual and EurEnergy in the amount of $66.5 million and overturned the Trial Court's ruling favorable to the Company rendering a judgment for that amount plus exemplary damages against the Company as the "alter ego" of Eurenergy.The Company and the other defendants filed a Petition for Review of the Court of Appeals Opinion with the Supreme Court of the State of Texas. On May 8, 2015, the Supreme Court of Texas affirmed, in part, and reversed, in part, the Court of Appeals Judgment, remanding the case to that Court for furthermaterial legal proceedings. In its opinion, the Supreme Court concluded that the evidence supports the Jury's verdict that the individual used the Company and other entities, that it would be unjust to require Carlton to treat them separately and found that the Company was an alter ego as a matter of law. The Supreme Court determined that the Court of Appeals erred in reinstating the jury's verdict on damages in the amount of $66.5 million as the amount was speculative and not supported by competent evidence. The Court declined to reinstate the trial court's judgment of $31.16 million. The Supreme Court did rule that there was some evidence to support an award of actual damages and therefore remanded the case to the Court of Appeals to make a factual sufficiency determination, if possible, as to as to the amount. The parties are awaiting the Court's rulingManagement's preliminary analysis of these developments suggests it is reasonably possible that the claim will result in an unfavorable outcome. Management notes that in connection with the original appeal, the individual defendant deposited alternative security with the Court to supersede the judgment which the Court determined to have a value in excess of $56 million. Management believes that the maximum exposure would be in an amount significantly less than the amount on deposit. Accordingly, management believes that any adverse outcome is fully secured by that deposit.OtherThe Company has been named as a defendant in other lawsuits in the ordinary course of business. Management is of the opinion that these lawsuits will not have a material effect on the financial condition, results of operations or cash flows of the Company.Item 4. Mine Safety DisclosuresNot Applicable9Registrant'sRegistrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity SecuritiesMKTAmerican using the symbol "GBR".“GBR.” The following table sets forth the high and low sales prices as reported in the reporting system of the NYSE MKTAmerican and other published financial sources 2015 2014 High Low High Low First Quarter $ 2.62 $ 1.21 $ 2.16 $ 1.62 Second Quarter $ 2.53 $ 1.20 $ 5.25 $ 1.72 Third Quarter $ 1.65 $ 1.16 $ 3.37 $ 1.56 Fourth Quarter $ 1.30 $ 1.08 $ 1.51 $ 0.85 2023 2022 High Low High Low First Quarter $ 1.40 $ 0.99 $ 6.25 $ 2.22 Second Quarter $ 1.26 $ 1.02 $ 3.47 $ 1.54 Third Quarter $ 1.24 $ 0.92 $ 2.34 $ 1.05 Fourth Quarter $ 1.37 $ 1.02 $ 2.00 $ 1.06 18, 201629, 2024, the closing price of the Company'sCompany’s Common Stock was $1.07$1.06 per share. According to the Transfer Agent's records, at March 18, 2016 the Company'sThe Company’s Common Stock was held by approximately 1,393 holders of record.3,500 stockholders.6 20152023 or 2014.2022. The Company has not paid cash dividends on its Common stock during at least the last ten fiscal years and it has been the policy of the Board of Directors of the Company to retain all earnings to pay down debt and finance future expansion and development of its businesses. The payment of dividends, if any, will be determined by the Board of Directors in the future in light of conditions then existing, including the Company'sCompany’s financial condition and requirements, future prospects, restrictions in financing agreements, business conditions and other factors deemed relevant by the Board of Directors.program, except whenprogram. However, from time to time in the past, the Company has purchased from stockholders owning less than one round lot (100 shares) so100 shares on request of such persons to save the Company will purchase shares at market closing on the last trading day prior to receiptcost of the certificate(s). The Company repurchased no shares during the three months ended December 31, 2015.10The selected consolidated financial data presented below are derived from the Company's audited financial statements. December 31, 2015 2014 2013 (amounts in thousands, except per share amounts) Operating revenue $ 3,817 $ 4,363 $ 4,222 Operating expenses 7,787 5,253 5,064 Operating profit (loss) (3,970 ) (890 ) (842 ) (2,622 ) (779 ) 426 Income tax (expense) — — — (2,622 ) (779 ) 426 NET EARNINGS (LOSS) $ (2,622 ) $ (779 ) $ 426 Continuing operations $ (1.35 ) $ (0.40 ) $ 0.22 Net earnings per share $ (1.35 ) $ (0.40 ) $ 0.22 1,947 1,947 1,947 Total assets $ 8,875 $ 12,274 $ 13,308 Long-term debt 1,211 1,428 2,195 Asset retirement obligation 2,770 2,770 2,770 Total liabilities 5,204 5,981 6,236 Total stockholders' equity $ 3,671 $ 6,293 $ 7,072 Management'sManagement’s Discussion and Analysis of Financial Condition and Results of OperationCompany, throughCompany’s operations during 2023 include both leasing its wholly owned subsidiaries Mountaineer State Energy, Inc.office building located in Parkersburg West Virginia and Mountaineer State Operations, LLC, owns and operatesmanaging the oil and gas wellsoperations it sold in August 2020 to a third party. The Company’s principal source of cash and mineral leases in Athens and Meigs Counties in Ohio and in Calhoun, Jackson and Roane Counties in West Virginia. The majority of our oil & gas operationincome was acquired through the acquisition of the Carl E. Smith Companies in 2008. As of December 31, 2015 the Company has 153 producing gas wells, 31 non-producing wells and related equipment and mineral leases covering approximately 20,000 acres.A component of the purchase price for the acquisition of Carl E. Smith, Inc. were certain non-interest bearing long term obligations which the Company will paid out over the next 12 years. The Company has evaluated the aboveinterest it receives from notes and after factoring in certain offsets provided for in the agreement, has valued the above obligations at $1,528,000 at December 31, 2015.As of December 31, 2015, the Company leased one independent living community in Oregon, with a capacity of 114 residents.A number of years ago the Company owned, leased and operated assisted living and retirement communities throughout the United States of America. During that period of time the Company has both acquired and sold over seventy communities. The property in Oregon is a holdover from that time period. While not an integral part of our business plan, the one remaining facility is profitable and it is anticipated that it will remain a part of the Company's operations.11Company'sCompany’s discussion and analysis of its financial condition and results of operations are based upon the Company'sCompany’s consolidated financial statements, which have been prepared in accordance with accounting principles generally accepted in the United States. Certain of the Company'sCompany’s accounting policies require the application of judgment in selecting the appropriate assumptions for calculating financial estimates. By their nature, these judgments are subject to an inherent degree of uncertainty. These judgments and estimates are based upon the Company'sCompany’s historical experience, current trends and information available from other sources that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying value of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates under different assumptions or conditions.The Company believes the following critical accounting policies are more significant to the judgments and estimates used in the preparation of its consolidated financial statements. Revisions in such estimates are recorded in the period in which the facts that give rise to the revisions become known. Oil and Gas Property AccountingThe Company uses the full cost method of accounting for its investment in oil and natural gas properties. Under this method of accounting, all costs of acquisition, exploration and development of oil and natural gas properties (including such costs as leasehold acquisition costs, geological expenditures, dry hole costs, tangible and intangible development costs and direct internal costs) are capitalized as the cost of oil and natural gas properties when incurred.The full cost method requires the Company to calculate quarterly, by cost center, a "ceiling," or limitation on the amount of properties that can be capitalized on the balance sheet. To the extent capitalized costs of oil and natural gas properties, less accumulated depletion and related deferred taxes exceed the sum of the discounted future net revenues of proved oil and natural gas reserves, the lower of cost or estimated fair value of unproved properties subject to amortization, the cost of properties not being amortized, and the related tax amounts, such excess capitalized costs are charged to expense. Beginning December 31, 2009, full cost companies use the unweighted arithmetic average first day of the month price for oil and natural gas for the 12-month period preceding the calculation date to calculate the future net revenues of proved reserves. Prior to December 31, 2009, companies used the price in effect at the calculation date and had the option, under certain circumstances, to elect to use subsequent commodity prices if they increased after the calculation date.The Company assesses any unproved oil and gas properties on an annual basis for possible impairment or reduction in value. The Company assesses properties on an individual basis or as a group if properties are individually insignificant. The assessment includes consideration of the following factors, among others: intent to drill; remaining lease term; geological and geophysical evaluations; drilling results and activity; the assignment of proved reserves; and the economic viability of development if proved reserves are assigned. During any period in which these factors indicate an impairment of unproved properties not subject to amortization, the associated costs incurred to date for such properties are then included in unproved properties subject to amortization.Oil and Gas ReservesOur proved oil and gas reserves are estimated by independent petroleum engineers. Reserve engineering is a subjective process that is dependent upon the quality of available data and the interpretation thereof, including evaluations and extrapolations of well flow rates and reservoir pressure. Estimates by different engineers often vary, sometimes significantly. In addition, physical factors such as the results of drilling, testing and production subsequent to the date of an estimate, as well as economic factors such as changes in product prices, may justify revision of such estimates. Because proved reserves are required to be estimated using prices at the date of the evaluation, estimated reserve quantities can be significantly impacted by changes in product prices.Depreciation, depletion and amortization ("DD&A") of producing properties is computed on the unit-of-production method based on estimated proved oil and gas reserves. While total DD&A expense for the life of a property is limited to the property's total cost, proved reserve revisions result in a change in timing of when DD&A expense is recognized. Downward revisions of proved reserves result in an acceleration of DD&A expense, while upward revisions tend to lower the rate of DD&A expense recognition.The standardized measure of discounted future net cash flows and changes in such cash flows are prepared using assumptions required by the Financial Accounting Standards Board and the Securities and Exchange Commission. Such assumptions include using year-end oil and gas prices and year-end costs for estimated future development and production expenditures. Discounted future net cash flows are calculated using a 10% rate. Changes in any of these assumptions could have a significant impact on the standardized measure. Accordingly, the standardized measure does not represent management's estimated current market value of proved reserves.12The Company's allowance for doubtful accounts receivable and notes receivable is based on an analysis of the risk of loss on specific accounts. The analysis places particular emphasis on past due accounts. Management considers such information as the nature and age of the receivable, the payment history of the tenant, customer or other debtor and the financial condition of the tenant or other debtor. Management's estimate of the required allowance, which is reviewed on a quarterly basis, is subject to revision as these factors change.Company'sCompany’s net deferred tax assets is dependent upon the generation of future taxable income prior to the expiration of the loss carry forwards. At December 31, 2015,2023, the Company had a deferred tax asset due to tax deductions available to it in future years. However, as management could not determine that it was more likely than not that the benefit of the deferred tax asset would be realized, a 100% valuation allowance was established.2015,2023 and 2022, the Company had current assets of $651,000$459,000 and $466,000 and current liabilities of $1,223,000.$473,000$447,000 at December 31, 20152023 and $300,000$436,000 at December 31, 2014.2022. New Concept'sConcept’s principal sources of cash arewas rent from the tenant occupying part of its building in West Virginia, management fees and interest from its notes receivable.7 salesfor a third party was $51,000 and $111,000 in 2023 and 2022. The management agreement has the Company receiving a management fee of 10% of oil and gas revenue. The decrease in management fees is due to a decrease in the revenue due to a decline in oil and proceedsgas prices. salesthe sale of assets.Net cash provided (used) by continuing operating activities was $579,000 in 2015, ($282,000) in 2014 and $1,602,000 in 2013.Net cash used in investing activities was $125,000 in 2015, $954,000 in 2014 and $401,000 in 2013.Net cash provided by (used in) financing activities was ($281,000) in 2015, ($85,000) in 2014 and $22,000 in 2013.Results of Operations20152022 as compared to 2014$3.8 million$101,000 in 20152022 and $4.4 million2021.2014. Net revenue for our oil2022 and gas operation decreased by $700,000$77,000 in 20152021. General and administrative expenses were $317,000 in 2022 and $360,000 in 2021.2014. The fluxuation was principally due to the price the Company received for its oil$220,000 in 2015 as compared to 2014. The revenue for the retirement community increased by approximately $100,000 in 2015 compared to 2014 principally due to rate increases.Operating Expenses: Operating expenses were $7.8 million in 2015 and $5.3 million in 2014.In 2015 pursuant to the requirements of the "full cost ceiling test" for oil & gas companies we recorded a non-cash charge to operations of $ $2,717,000 to write down its investment in Ohio and West Virginia. This charge to earnings was caused by the severe drop in the market price of oil all throughout 2015.Corporate Expenses were $605,000 in 2015 and $823,000 in 2014. The decrease is primarily due to a reduction in legal fees paid in 2015 as compared to 2014.Interest Income & Expense: Interest Expense was $62,000 in 2015 as compared to $91,000 in 2014.2021. The decrease was due to athe reduction in the long term debt owedprincipal balance outstanding due to the previous owners of the Company's oil and gas operation in West Virginia / Ohio. & (Expense)& (expense) was ($32,000) for 2015 as$131,000 in 2022 compared to $197,000$191,000 in 2014. The balances2021. Included in 2015other income for 2022 is $63,000 which represents the collection of an investment that had previously been fully reserved and 2014 are compriseda gain of numerous events.Bad Debt Expense (Recovery): In 2015$68,000 from the company recordedsale of equipment Included in other income for 2021 is an income tax refund for prior years of $91,000 and $100,000 from the sale of a bad debt expense recovery of $1,430,000 with respect to a note receivable that washad been fully reserved in a prior year (For a more complete discussion of history of the receivable, the establishment of a reserve due to concerns regarding collectability of the receivable and the recovery efforts refer to the Company's Annual Report on Form 10-K for the year ended December 31, 2014 in Item 13. on page 21 and Footnote C on page34)Fiscal 2014 as compared to 2013Revenues: Total revenues was $4.4 million in 2014 and $4.2 million in 2013. Net revenue for our oil and gas operation increased by $200,000 for the first nine months of the year but decreased by $200,000 in the final quarter of the year. The fluxuation was principally due to the price the Company received for its oil in 2014 as compared to 2013. The revenue for the retirement community increased by approximately $200,000 in 2014 compared to 2013 principally due to rate increases.13Operating Expenses: Operating expenses were $5.3 million in 2014 and $5.1 million in 2013.Oil & gas operating expenses decreased by a net of $214,000 in 2014. Pursuant to the requirements of the "full cost ceiling test" in 2013 the Company recorded a non-cash charge to operations of $ 200,000 to write down its investment of $250,000 in two small wells in Arkansas.Real estate operating expenses were $2.6 million in 2014 as compared to $2.5 million in 2013. The principal cause of the increase were non-payroll related expenses at the Company's retirement facility.Corporate Expenses were $823,000 in 2014 and $500,000 in 2013. The increase is primarily due to consulting fees paid to assist the Company in its oil and gas operations and to identify new oil and gas opportunities.Interest Income & Expense: Interest Expense was $91,000 in 2014 as compared to $114,000 in 2013. The decrease was due to a reduction in the long term debt owed to the previous owners of the Company's oil and gas operation in West Virginia / Ohio.Other Income & (Expense): Other income & (expense) was $197,000 for 2014 as compared to $ ($189,000) in 2013. The balances in 2014 and 2013 are comprised of numerous events.Bad Debt Expense (Recovery): In 2011 the company recorded a bad debt expense with respect to a note receivable of $10 million dollars. In 2013 and 2012 the company recovered $1.6 million and $2.1 million, respectively, and recorded income (For a more complete discussion of history of the receivable, the establishment of a reserve due to concerns regarding collectability of the receivable and the recovery efforts refer to the Company's Annual Report on Form 10-K for the year ended December 31, 2014 in Item 13. on page 21 and Footnote C on page34)Allthe Company's debt is financed at fixed rates of interest. Therefore,December 31, 2023 the Company has minimalno outstanding long term debt, therefore, the Company has no risk from exposure to changes in interest rates.2416 of this Report."Exchange Act"“Exchange Act”)) were effective to provide reasonable assurance that information required to be disclosed by us in reports that we file or submit under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in SEC rules and forms and that such information is accumulated and communicated to our management, including our Principal Executive Officer and Principal Financial Officer, to allow timely decisions regarding required disclosures.8 14Management'sCompany'sCompany’s internal control over financial reporting as of December 31, 2009.reporting. In making this assessment, management used the criteria set forth in Internal Control - Integrated Framework -2013 issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Based on management'smanagement’s assessments and those criteria, management has concluded that Company'sCompany’s internal control over financial reporting was effective as of December 31, 2014.Company'sCompany’s registered public accounting firm regarding internal control over financial report. Management'sManagement’s report was not subject to attestation by the Company'sCompany’s registered public accounting firm pursuant to rules of the Securities and Exchange Commission that permit the Company to provide only management'smanagement’s report in this annual report.management'smanagement’s report on internal control over financial reporting, we documented and tested the design and operating effectiveness of our internal control over financial reporting. There were no changes in our internal controls over financial reporting (as such term is defined in Exchange Act Rule 13a-15(f)) that occurred during the quarter ended December 31, 20152023 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.applicable.15Board'sBoard’s objective that a majority of the Board consists of independent directors. For a director to be considered "independent",“independent,” the Board must determine that the director does not have any direct or indirect material relationship with the Company. The Board has established guidelines to assist it in determining director independence, which conform to, or are more exacting than, the independence requirements in the NYSE American Stock Exchange listing rules. The independence guidelines are set forth in the Company's "CorporateCompany’s “Corporate Governance Guidelines".Guidelines.” The text of this document has been posted on the Company'sCompany’s internet website at http://www.newconceptenergy.com, and is available in print to any stockholder who requests it. In addition to applying these guidelines, the Board will consider all relevant facts and circumstances in making an independent determination.9 MKTAMERICAN on our website.300"audit committee"“audit committee” for the purposes of Section 3(a) (58) of the Exchange Act. The members of that Committee are Dan Locklear (Chairman), James HuffsticklerRaymond D. Roberts, Cecilia Maynard and Victor L. Lund.Richard W. Humphrey. Mr. Locklear is qualified as an "audit“audit committee financial expert"expert” within the meaning of SEC regulations and the Board has determined that he has the accounting and related financial management expertise within the meaning of the listing standards of the NYSE MKT.American. All of the members of the Audit Committee meet the independence and experience requirements of the listing standards of the NYSE MKT.director'sdirector’s compensation (other than in their capacity as a member of the Audit Committee, the Board of Directors or any other Committee of the Board), and (ii) no member of the Audit Committee may be an "affiliated person"“affiliated person” of the Company or any of its subsidiaries, as defined by the Securities and Exchange Commission."affiliated",“affiliated,” when used below with respect to a director, means that the director is an officer or employee of the Company or one of its subsidiaries. The designation "independent",“independent,” when used below with respect to a director, means that the director is neither an officer of the Company nor a director, officer or employee of a subsidiary of the Company, although the Company may have certain business or professional relationships with the director as discussed in Item 13. Certain Relationships and Related Transactions. No family relationship exists between any executive officer and any of the directors of the company.1684,92, (Independent) Director since June 2015recentlycurrently retired. For more thanHe was also a director of American Realty Investors, Inc. (“ARL”), Transcontinental Realty Investors, Inc. (“TCI”) and Income Opportunity Realty Investors, Inc. (IOR”) from June 2, 2016 to October 10, 2023, ARL and TCI common stock are listed and traded on the past five years, he has been Director of Aviation of Stellar Aviation,New York Stock Exchange and IOR common stock is listed and traded on the NYSE American Exchange. These Companies are affiliated with both Realty Advisors, Inc., a privately held Nevada Corporation, engaged in the business of aircraft (Boeing 737) and logistical management.Pillar Income Asset Management. Mr. Roberts was also elected asis a member of the Governance and Nominating Committee of the Board of Directors of the Registrant.67,75, (Affiliated) Director November 1989 to September 1996 and since June 1999Also, Mr. Bertcher iswas until June 30, 2019 Executive Vice-President and Chief Financial Officer of American Realty Investors, Inc. (NYSE),and Transcontinental Realty Investors, Inc. (NYSE), both of which are traded on the NYSE. Mr. Bertcher was until December 16, 2021 Executive Vice-President and Chief Financial Officer of Income Opportunity Realty Investors, Inc., which is traded on the NYSE MKT,American Exchange. He had occupied these positions he has occupied since February 2008. Further Mr. Bertcher as of August 2020 is a Director of Pillar Income Asset Management. He has been a certified public accountant since 1973. 10 James E. Huffstickler,71,70, (Independent) Director since December 2003Mr. Huffstickler has been Chief Financial Officer of Sunchase America, Ltd., a multi-state property management company, for more than twenty two years. He is a graduate of the University of South Carolina. Mr. Huffstickler has been a certified public accountant since 1976.Dan Locklear, age 62, (Independent) Director since December 2003Victor L. Lund,86,76, (Affiliated) Director since October 2020March 1996Mr. Lund founded Wedgwood Retirement Inns,January 2019("Wedgwood"(“Pillar”) in 1977,from January 2011 through December 31, 2018. Pillar is a Nevada corporation which becameprovides management services to other entities. Ms. Maynard was also (May 31, 2018 to June 2021) a wholly owned subsidiarydirector, Vice President and Secretary of First Equity Properties, Inc., a Nevada corporation, the common stock of which is registered under Section 12(g) of the Company in 1996. For mostSecurities Exchange Act of Wedgwood's existence, Mr. Lund was Chairman of the Board, President and Chief Executive Officer, positions he held until Wedgwood was acquired by the Company. Mr. Lund is President and Chief Executive Officer of Wedgwood Services, Inc., a construction Services Company not affiliated with the Company.sixfive meetings during 2015.2023. For such year, no incumbent director attended fewer than 75% of the aggregate of (i) the total number of meetings held by the Board during the period for which he or she had been a director, and (ii) the total number of meetings held by all Committees of the Board on which he or she served during the period that he or she served.Company'sCompany’s operating and accounting procedures. A Charter of the Audit Committee has been adopted by the Board. The current members of the Audit Committee, all of whom are independent within the SEC regulations, the listing standards of the NYSE MKTAmerican and the Company'sCompany’s Corporate Governance Guidelines are Messrs. Locklear (Chairman), HuffsticklerRoberts and Lund.Ms. Maynard. Mr. Dan Locklear is qualified as an Audit Committee financial expert within the meaning of SEC regulations, and the Board has determined that he has the accounting and related financial management expertise within the meaning of the listing standards of the NYSE MKT.American. The Audit Committee met fourfive times in 2015.the corporate governance, including reviewing and monitoring implementation of the Company'sCompany’s Corporate Governance Guidelines. In addition, the Committee develops and reviews background information on candidates for the Board and makes recommendations to the Board regarding such candidates. The Committee also prepares and supervises the Board'sBoard’s annual review of director independence and the Board'sBoard’s performance and self-evaluation. The Charter of the Governance and Nominating Committee was adopted on October 20, 2004. The members of the Committee are Messrs. HuffsticklerLocklear, Roberts and Ms. Maynard (Chairman), Lund and Locklear. The Governance and Nominating Committee met twice in 2015.17and selectedthe committee members are Mr. Roberts (Chairman) and Messrs. HuffsticklerLocklear and Locklear as members of that Committee. The Compensation Committee met twice in 2015.Director Audit Committee Governance and Nominating Committee Compensation Committee Raymond DD. Roberts✓ ✓ Chairman Gene S. Bertcher James E. HuffsticklerCecilia Maynard✓ Chairman ✓ Dan Locklear Chairman ✓ ✓ Victor L. LundRichard W. Humphrey✓✓11 "Directors"“Directors” above.officers,officer, the Company has other officers not listed herein who are not considered executive officers."Code“Code of Business Conduct and Ethics"Ethics” that applies to all directors, officers and employees of the Company and its subsidiaries. In addition, the Company has adopted a code of ethics entitled "Code“Code of Ethics for Senior Financial Officers"Officers” that applies to the principal executive officer, president, principal financial officer, chief financial officer, principal accounting officer and controller. The text of these documents is posted on the Company'sCompany’s internet website address at http://www.newconceptenergy.com and is available in print to any stockholder who requests them.furnishedavailable to the Company pursuant to Rule 16a-3(e) promulgated under the Securities Exchange Act of 1934 (the "Exchange Act")“Exchange Act “), upon written representations received by the Company, the Company is not aware of any failure by any director, officer or beneficial owner of more than 10% of the Company'sCompany’s common stock to file with the Securities and Exchange Commission on a timely basis.2015, 20142023, 2022 and 20132021 by the Chief Executive Officer of the Company and to the other executive officers and Directors of the Company whose total annual salary in 20152023 exceeded $100,000.SUMMARY COMPENSATION TABLE Change in Non- Pension Equity Value and Name Incentive Nonqualified All and Plan Deferred Other Principal Stock Option Compen- Compensation Compen- Position Year Salary Bonus Awards Awards sation Earnings sation Total 2015 $ 107,300 $ 107,300 2014 $ 107,300 $ 107,300 2013 $ 103,300 $ 103,300 18 Change in Non- Pension Equity Value and Name Incentive Nonqualified All and Plan Deferred Other Principal Stock Option Compen- Compensation Compen- Position Year Salary Bonus Awards Awards sation Earnings sation Total Gene S. Bertcher (1) 2023 $ 56,500 $ 56,500 Chairman, President & 2022 $ 56,500 $ 56,500 Chief Financial Officer 2021 $ 56,500 $ 56,500 (1) The salary in the above table represents Mr. Bertcher’s compensation paid by the Company; he also receives additional compensation for services to other entities which are related to the Company. 12 The salary in the above table represents the portion of Mr. Bertcher's compensation paid by the Company.13 None19DIRECTOR COMPENSATION Name Total Raymond D Roberts $ 8,500 $ 8,500 Gene S. Bertcher $ — $ — James E. Huffstickler $ 10,500 $ 10,500 Dan Locklear $ 10,500 $ 10,500 Victor L. Lund $ 10,500 $ 10,500 DIRECTOR COMPENSATION Name Total Gene S. Bertcher $ — $ — Raymond D. Roberts $ 10,500 $ 10,500 Dan Locklear $ 10,500 $ 10,500 Richard W. Humphrey $ 10,500 $ 10,500 Cecilia Maynard $ 10,500 $ 10,500 and Management and Related Stockholder Mattersasthe ownership of March 30, 2016, certain information with respect to all stockholdersthe Company’s Common Stock, both beneficially and of record, both individually and in the aggregate, for those persons or entities known by the Company to own beneficiallybe the beneficial owners of more than 5% of theits outstanding Common Stock which is the only outstanding class of securitiesas of the Company, except for Series B Preferred Stock (theclose of business on March 29, 2023.1,394,934 shares · based on 5,131,934 shares outstanding on March 28, 2024. which is immaterial), as well as information with respect to the Company'sCompany’s Common Stock, ownedboth beneficially by each director and current executive officers, whose compensation fromof record, both individually and in the Company in 2015 exceeded $100,000, and by allaggregate for the directors and executive officers of the Company, as of the close of business on March 29, 2024.Name and Address of Beneficial Owner Amount and Nature of Beneficial
Ownership*Approximate Percent of
Class**Gene S. Bertcher - 0% Raymond Roberts - 0% Dan Locklear - 0% Richard Humphrey - 0% Cecilia Maynard - 0% All directors and executive officers as a group (5 people) - 0% group. Unless otherwise indicated, each of these stockholders has sole voting andsecurity or investment power with respect to the shares beneficially owned. Common Stock Name of Beneficial Owner 813,96868 41.81 % 40,811 2.1 % 100,000 5.14 % 108,944 5.6 % Albert Spiesman(7) 112,326 5.77 % James E. Huffstickler — 0 % Dan Locklear — 0 % Victor L. Lund — 0 % Raymond D. Roberts — 0 % 14,974 0.77 % 672,630 34.54 % All executive officers and directors as a group (five persons) 40,911 2.1 % Based on 1,946,935Percentages are based upon 5,131, 934 shares of common stockCommon Stock outstanding at March 30, 201620(1) Consists of 108,994 shares of common stock owned by HKS Investment Corporation ("HKS"). According to an original statement on Schedule 13D dated January 9, 2006, the group consists of HKS Investment Corporation, David Hensel, John Kellar and Marshall Stagg, each of whom are deemed to be the beneficial owner of all 108,994 shares. Hensel is stated to be a shareholder, director and President of HKS; Kellar is a shareholder, director, Vice President and Treasurer of HKS; and Stagg is a shareholder, director and Secretary of HKS.14(3) Based on Amendment 22 to Schedule 13D, amended February 11, 2015, filed by each of these entities. Arcadian Energy, Inc. owns 141,338 shares directly and is the sole member of URC Energy, LLC which owns 672,630 shares. The amended Schedule 13D indicates that these entities, collectively, may be deemed a "Person" within the meaning of Section 13D of the Securities Exchange Act of 1934. Includes 100 shares owned directly by Ms. Beadle, a director, President, and Treasurer of Arcadian Energy, Inc. ("Arcadian"), which owns 127,968 shares direct and is the sole member of URC Energy, LLC, which owns 672,630 shares direct. Arcadian is the sole member of URC Energy, LLC, and Arcadian is deemed to be the beneficial owner of such 672,630 shares. Ms. Beadle shares voting power with one other director over the shares owned by Arcadian and URC Energy, LLC.(4) Consists of 14,974 shares of common stock. Officers and Directors of TacCo Financial, Inc. ("TFI") are Ted P. Stokely, Chairman; RL S. Lemke, President and Treasurer and Craig E. Landess, Secretary. TFI's stock is owned by Ted P. Stokely (100%).(5) The direct owner of the 672,630 shares of common stock is URC Energy, LLC. Under Rule 13d-3 of the Exchange Act, Arcadian Energy, Inc. as the sole member of URC Energy, LLC is deemed to be the beneficial owner of such shares.(6) Consists of 100,000 shares of Common Stock owned by Go Green Fuel N.A., L.P. a Texas limited partnership, the sole General Partner of which is GGF North American, LLC, a Texas limited liability company. According to an original statement on Schedule 13D dated December 31, 2009, Go Green Fuel N.A., L.P. acquired 100,000 shares of Common Stock from West Go Green, LLC a Nevada limited liability company at a price of $6.90 per share and Go Green Fuel N.A., LP granted to West Go Green LLC a "Repurchase Option" for a period of three calendar years from December 31, 2009 to repurchase all or any portion of the 100,000 shares purchased at the original purchase price of $6.90 per share, which Repurchase Option. (7) According to a schedule 13G, filed for an event occurring February 27, 2015, by Albert Spiesman, Roth retirement accounts for Albert Spiesman own and hold 82,701 shares; Albert Spiesman, a Trustee for a Roth retirement account f/b/o Joyce E. Spiesman, owns and holds 14,625 shares; and Albert and Joyce E. Spiesman hold, as joint tenancy, 15,000 shares of Common Stock, for an aggregate total of 112,326 shares of Common Stock, beneficially owned by Albert Spiesman.Prime Income Asset Management, Inc ("PIAMI") is a real estate management company that also invests in real estate for its own account. Pillar Income Asset Management, Inc. ("Pillar") is a real estate management company. Both PIAMI and Pillar are indirectly owned by a private trust. URC Energy, Inc. ("URC") is and has been a significant investor in the Company. URC is indirectly owned by a private trust. While the trusts for PIAMI and Pillar and URC are separate they have similar trustees and beneficiaries and therefore the Company has noted PIAMI and Pillar as related parties.Eurenergy Resources, Inc ("ERC") is an oil & gas company that owned and operated oil and gas wells. Beginning in 2006 the Company made loans to PIAMI and ERC at interest rates higher than the Company believes it could have gotten elsewhere.In July 2006, the Company made an unsecured $1.4 million loan to ERC at an annual interest rate of 8%. In June of 2008, the Company entered into a letter of credit agreement with ERC. The terms of the agreement called for interest at the prime rate plus two percent. At May 21, 2009, the balance of the two notes and accrued interest thereon was $3,970,897. On November 20, 2007, the Company made a $630,000 loan PIAMI. In 2008, the Company made additional net advances on the loan totaling approximately $6.3 million. The initial loan and the additional advances were combined into a new loan with interest at the prime rate plus two percent. On May 21, 2009, PIAMI acquired both Eurenergy notes receivable at face value plus accrued interest totaling $3,970,897. Effective May 21, 2009 the Company and PIAMI entered into a new note combing all of the above loans into one note. The loan calls for interest at the prime rate plus 2% with principal and interest payable within 30 days after demand, and if not sooner demanded, on January 31, 2013.At December 31, 2009, the balance due including accrued interest on the note receivable from PIAMI was $11.1 million.During 2010 the note was paid down whereby as of December 31, 2010 the outstanding principal and interest totaled $10.4 million. During the first three quarters of 2011 the Company accrued interest of $360,000 and received $715,000 in payments from PIAMI. In the fourth quarter of 2011 the Company determined that the financial condition of PIAMI had deteriorated and there could be no assurance that the amount owed would or could be collected. The company has recorded a reserve of $10 million (the full balance) for the combined note.Company conductedcontractual advisor to three other publicly traded entities which are related to Realty Advisors, Inc. (“RAI”) through stock ownership by RAI. In addition, the relationship with Mr. Bertcher New Concept conducts business with Pillar whereby Pillar provided the Company with services including processing payroll, acquiring insurance and other administrative matters (rent).matters. The Company believes that by purchasing these services through certain large entities it can get lower costs and better service. In addition, Pillar loaned the Company $225,000 which was used to settle a lawsuit. Pillar does not charge the Company a fee for providing these services.21While separate companies, both PIAMI and Pillar are bothis a wholly owned bysubsidiary of Realty Advisors, Inc. ("RAI"). During 2011 and 2012 the Company incurred obligations to Pillar totaling approximately $1.7 million. In a joint agreement among Pillar, PIAMI and the Company, Pillar agreed to relieve the Company of its obligation to pay $1.7 million and the Company agreed to reduce the amount owed by Prime by a like amount. In the third quarter of 2012 the Company recorded a $1.7 million gain on the transaction. In the fourth quarter of 2012 Pillar incurred expenses on behalf of the Company of $376,000 and agreed to forego payment in exchange for a reduction in the PIAMI obligation. The Company recorded an additional $376,000 gain.During 2015, the Company incurred obligations to Pillar including the cost of payroll, insurance and other operating expenses. In a joint agreement among Pillar, PIAMI and the Company, Pillar agreed, in lieu of being reimbursed for such expenses, to relieve the Company of its obligation to pay $1.4 million and the Company agreed to reduce the amount owed by Prime by a like amount.finders'finders’ fees, joint ventures, loan or option arrangements, puts or calls, guarantees of profits, divisions of profits or losses, or the giving or withholding of proxies.non-managementindependent members of the Board of Directors of the Company. All of the transactions described above were so approved.20152023, 2022 and 20142021 by the Company'sCompany’s principal accounting firm Swalm & Associates, P.C.:Type of Fees 2015 2014 Audit Fees $ 61,000 $ 60,000 Tax Fees 9,000 9,000 Total Fees $ 70,000 $ 69,000 Type of Fees 2023 2022 2021 Audit Fees $ 44,250 $ 42,750 $ 71,525 Tax Fees 3,750 2,750 12,530 Total Fees $ 48,000 $ 45,500 $ 84,055 Company'sCompany’s annual financial statements and review of financial statements included in the Company'sCompany’s Form 10-Q filings and services that are normally provided in connection with statutory and regulatory filings or engagements.Company'sCompany’s financial statements. These services include attestation by the principal auditor that is not required by statute or regulation and consulting on financial accounting/reporting standards.15 auditor'sauditor’s core work, which is the audit of the Company'sCompany’s consolidated financial statements.Swalm & Associates, P.C. did not render professional services to the Company in 2015 with respect to financial information systems design and implementation.22"SO Act"“SO Act”), and the rules of the Securities and Exchange Commission (the "SEC"“SEC”), the Audit Committee of the Board of Directors is responsible for the appointment, compensation and oversight of the work of the independent auditor. The purpose of the provisions of the SO Act and the SEC rules for the Audit Committee'sCommittee’s role in retaining the independent auditor is two-fold. First, the authority and responsibility for the appointment, compensation and oversight of the auditors should be with directors who are independent of management. Second, any non-audit work performed by the auditors should be reviewed and approved by these same independent directors to ensure that any non-audit services performed by the auditor do not impair the independence of the independent auditor. To implement the provisions of the SO Act, the SEC issued rules specifying the types of services that an independent auditor may not provide to its audit client and governing the Audit Committee'sCommittee’s administration of the engagement of the independent auditor. As part of this responsibility, the Audit Committee is required to pre-approve the audit and non-audit services performed by the independent auditor in order to assure that they do not impair the auditor'sauditor’s independence. Accordingly, the Audit Committee has adopted a pre-approval policy of audit and non-audit services (the "Policy"“Policy”), which sets forth the procedures and conditions pursuant to which services to be performed by the independent auditor are to be pre-approved. Consistent with the SEC rules establishing two different approaches to pre-approving non-prohibited services, the Policy of the Audit Committee covers pre-approval of audit services, audit-related services, international administration tax services, non-U.S. income tax compliance services, pension and benefit plan consulting and compliance services, and U.S. tax compliance and planning. At the beginning of each fiscal year, the Audit Committee will evaluate other known potential engagements of the independent auditor, including the scope of work proposed to be performed and the proposed fees, and the approve or reject each service, taking into account whether services are permissible under applicable law and the possible impact of each non-audit service on the independent auditor'sauditor’s independence from management. Typically, in addition to the generally pre-approved services, other services would include due diligence for an acquisition that may or may not have been known at the beginning of the year. The Audit Committee has also delegated to any member of the Audit Committee designated by the Board or the financial expert member of the Audit Committee responsibilities to pre-approve services to be performed by the independent auditor not exceeding $25,000 in value or cost per engagement of audit and non-audit services, and such authority may only be exercised when the Audit Committee is not in session.16 23ConsolidatedExhibits, Financial Statement and Supplementary Schedules PagePage FINANCIAL STATEMENTS Report of Swalm & Associates, P.C. 25Consolidated Balance Sheets26Consolidated Statements of Operations28Consolidated Statements of Cash Flows29Consolidated Statements of Changes in Stockholders' Equity30Notes to Consolidated Financial Statements31 Report of Turner & Stone Company, LLC (PCAOB ID Number 76) 18 Report of Swalm & Associates, P.C. (PCAOB ID Number 1820) 20 Consolidated Balance Sheets 22 Consolidated Statements of Operations 24 25 26 Notes to Consolidated Financial Statements 27 SCHEDULES:SCHEDULES: Other financial statement schedules have been omitted because they are not required, are not applicable, or the information required is included in the Consolidated Financial Statements or the notes thereto.ITEM 16. FORM 10-K SUMMARY 17 24REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRMTo the , and & Subsidiaries as of December 31, 2015 and 2014,2023, and the related consolidated statements of income, shareholders'operations, changes in stockholders’ equity, and cash flows for eachthe year then ended, and the related notes (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of New Concept Energy, Inc. & Subsidiaries as of December 31, 2023, and the yearsresults of its operations and its cash flows for the year then ended in conformity with accounting principles generally accepted in the three-year period endedUnited States of America.2015. 2022, were audited by other auditors whose report dated March 20, 2023, expressed an unqualified opinion on those statements. consolidated financial statements are the responsibility of the Company'sentity’s management. Our responsibility is to express an opinion on the consolidatedentity’s financial statements based on our audit.auditsaudit in accordance with the standards of the Public Company Accounting Oversight Board (United States).PCAOB. Those standards require that we plan and perform the auditsaudit to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement. The Companymisstatement, whether due to error or fraud. New Concept Energy, Inc. & Subsidiaries is not required to have, nor were we engaged to perform, auditsan audit of its internal control over financial reporting. Our audits include considerationAs part of our audit, we are required to obtain an understanding of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion ofon the effectiveness of the Company'sentity’s internal control over financial reporting. Accordingly, we express no such opinion. Anincludesincluded performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence supportingregarding the amounts and disclosures in the consolidated financial statements. AnOur audit also includes assessingincluded evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statement presentation.statements. We believe that our audits provideaudit provides a reasonable basis for our opinion.18 19 consolidated financial statements referred to above present fairly, in all material respects, the financial position of New Concept Energy, Inc., and Subsidiariesthe Company as of December 31, 2015 and 2014,2022, and the consolidated results of theirits operations and theirits cash flows for each of the years in the three-yeartwo-year period ended December 31, 2015,2022, in conformity with accounting principles generally accepted in the United States of America.20 Note Cthe notes to the consolidated financial statements, the CompanyNew Concept Energy, Inc. and Subsidiaries has significant transactions with and balances due from an affiliate.As described in Note K to the financial statements, the Company is named as a party to a significant lawsuit judgment. The Company and its legal counsel believe that the judgment is in error and that while the outcome of the matter cannot presently be determined, they do not believe that the matter will have a material effect on the Company's consolidated financial position. Accordingly, no provision for any liability that may result has been made in the financial statements. Nevertheless, due to the nature of the uncertainty, it is reasonably possible that management's view of the outcome will change in the near term./s/ related parties.21 March 30, 2016Table of Contents 25NEW CONCEPT ENERGY, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (amounts in thousands) December 31, 2015 2014 Assets Current assets Cash and cash equivalents $ 473 $ 300 Accounts receivable from oil and gas sales 141 216 Other current assets 37 182 Total current assets 651 698 Oil and natural gas properties (full cost accounting method) Proved developed and undeveloped oil and gas properties, net of depletion 5,914 8,809 Property and equipment, net of depreciation Land, buildings and equipment - oil and gas operations 803 1,476 Other 134 162 Total property and equipment 937 1,638 1,373 1,129 Total assets $ 8,875 $ 12,274 The accompanying notes are an integral part of these consolidated financial statements. 26NEW CONCEPT ENERGY, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS - CONTINUED (amounts in thousands, except share amounts) December 31, 2015 2014 Liabilities and stockholders' equity Current liabilities Accounts payable - trade (including$168 and $494 in 2015 and 2014 due to related parties) $ 241 $ 673 Accrued expenses 151 229 Current portion of long term debt 831 881 Total current liabilities 1,223 1,783 Long-term debt Notes payable less current portion 1,211 1,428 Asset retirement obligation 2,770 2,770 Total liabilities 5,204 5,981 Stockholders' equity Series B convertible preferred stock, $10 par value, liquidation value of $100 authorized 100 shares, issued and outstanding one share 1 1 Common stock, $.01 par value; authorized, 100,000,000 shares; issued and outstanding, 1,946,935 shares at December 31, 2015 and 2014 20 20 Additional paid-in capital 58,838 58,838 Accumulated deficit (55,188 ) (52,566 ) 3,671 6,293 Total liabilities & stockholders' equity $ 8,875 $ 12,274 The accompanying notes are an integral part of these consolidated financial statements. 27NEW CONCEPT ENERGY, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATION (amounts in thousands, except per share data) Year Ended December 31, 2015 2014 2013 Revenue Oil and gas operations, net of royalties $ 820 $ 1,489 $ 1,477 Real estate operations 2,997 2,874 2,745 3,817 4,363 4,222 Operating expenses Oil and gas operations 1,800 1,853 1,867 Real estate operations 1,685 1,616 1,555 Lease expense 980 961 942 Corporate general and administrative 605 823 500 Impairment of natural gas and oil properties 2,717 - 200 7,787 5,253 5,064 Operating earnings (loss) (3,970 ) (890 ) (842 ) Other income (expense) Interest income 12 5 9 Interest expense (62 ) (91 ) (114 ) Bad debt expense (recovery) - note receivable 1,430 - 1,562 Other income (expense), net (32 ) 197 (189 ) 1,348 111 1,268 Earnings (loss) from continuing operations (2,622 ) (779 ) 426 Net income (loss) applicable to common shares $ (2,622 ) $ (779 ) $ 426 Net income (loss) per common share-basic and diluted $ (1.35 ) $ (0.40 ) $ 0.22 Weighted average common and equivalent shares outstanding - basic 1,947 1,947 1,947 The accompanying notes are an integral part of these consolidated financial statements. 28NEW CONCEPT ENERGY, INC AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (amounts in thousands) Year ended December 31, 2015 2014 2013 Cash flows from operating activities Net income (loss) $ (2,622 ) $ (779 ) $ 426 Depreciation, depletion and amortization 721 732 763 Impairment of natural gas and oil properties 2,717 - 200 Write-off (recovery) of affiliate receivable (1,430 ) - (1,562 ) Reserve for liability in Chesapeake litigation - - 381 Changes in operating assets and liabilities Other current and non-current assets 273 5 (163 ) Accounts payable and other liabilities 920 (240 ) 1,557 Interest payable - - - Net cash provided by (used) in operating activities 579 (282 ) 1,602 Cash flows from investing activities Investment in oil and gas properties (336 ) (129 ) (240 ) Fixed asset additions (31 ) (175 ) (161 ) Cash portion from sale of land 116 - - Repayment of loan from affiliate 126 - - Real estate held for investment - (650 ) Net cash used in investing activities (125 ) (954 ) (401 ) Cash flows from financing activities Payment on notes payable (281 ) (213 ) (40 ) Proceeds from loans - 128 62 Net cash provided by (used in) financing activities (281 ) (85 ) 22 Net increase (decrease) in cash and cash equivalents 173 (1,321 ) 1,223 Cash and cash equivalents at beginning of year 300 1,621 398 Cash and cash equivalents at end of year $ 473 $ 300 $ 1,621 Supplemental disclosures of cash flow information Cash paid for interest on notes payable: $ 77 $ 77 $ 72 Cash paid for principal on notes payable: $ 279 $ 213 $ 40 Non cash portion of sale of land $ 415 $ 0 $ 0 Cash paid income taxes $ 0 $ 0 $ 0 The accompanying notes are an integral part of these consolidated financial statements. 29 Series B Common Additional Accum- Preferred stock Stock paid in ulated Shares Amount Shares Amount capital deficit Total Balance at December 31, 2012 1 $ 1 1,947 $ 20 $ 58,838 $ (52,213 ) $ 6,646 Net Income 426 426 Balance at December 31, 2013 1 1 1,947 $ 20 $ 58,838 (51,787 ) 7,072 Net Income (779 ) (779 ) Balance at December 31, 2014 1 1 1,947 $ 20 $ 58,838 (52,566 ) 6,293 Net Income (2,622 ) (2,622 ) Balance at December 31, 2015 1 $ 1 1,947 $ 20 $ 58,838 $ (55,188 ) $ 3,671 At December 31, 2023 2022 Assets Current assets Cash and cash equivalents $ 447 $ 436 Other current assets 12 30 Total current assets 459 466 Property and equipment, net Land, buildings and equipment 629 631 Note Receivable - related party 3,542 3,542 Total assets $ 4,630 $ 4,639 22 At December 31, 2023 2022 Liabilities and stockholders' equity Current liabilities Accounts payable - trade (including $8 in 2023 and 2022 due to related parties) $ 36 $ 23 Accrued expenses 39 40 Total current liabilities 75 63 Stockholders' equity Series B convertible preferred stock, $ par value, liquidation value of $100, authorized shares, issued and outstanding one share 1 1 Common stock, $ par value; authorized shares; issued and outstanding, shares at December 31, 2023 and 2022 51 51 Additional paid-in capital 63,579 63,579 Accumulated deficit (59,076 ) (59,055 ) 4,555 4,576 Total liabilities & stockholders' equity $ 4,630 $ 4,639 23 Year Ended December 31, 2023 2022 2021 Revenue Rent $ 101 $ 101 $ 101 Management Fee 51 111 - 152 212 101 Operating Expenses Operating Expenses 57 57 77 Corporate general and administrative 338 317 360 Total Operating Expenses 395 374 437 Operating loss (243 ) (162 ) (336 ) Other Income (Expense) Interest income from a related party 213 212 212 Interest income 9 - 8 Interest expense - - (5 ) Other income - 131 191 Total Other income (Expense) 222 343 406 Net income (loss) applicable to common shares $ (21 ) $ 181 $ 70 Net income (loss) per common share-basic and diluted $ ) $ $ Weighted average common and equivalent shares outstanding - basic and diluted 24 Series B Common Stock Additional paid Accumulated in capital deficit Total Shares Amount Shares Amount Balance at December 31, 2020 1 $ 1 5,132 $ 51 $ 63,579 $ (59,306 ) $ 4,325 Issuance of Common Stock Net Income - - - 70 70 Balance at December 31, 2021 1 1 5,132 $ 51 63,579 (59,236 ) 4,395 Issuance of Common Stock Net Income - - - 181 181 Balance at December 31, 2022 1 1 5,132 51 63,579 (59,055 ) 4,576 Issuance of Common Stock Net Loss - - - (21 ) (21 ) Balance at December 31, 2023 1 $ 1 5,132 $ 51 $ 63,579 $ (59,076 ) $ 4,555 3025 Year ended December 31, 2023 2022 2021 Cash flows from operating activities Net income (loss) $ (21 ) $ 181 $ 70 Adjustments to reconcile net income (loss) to net cash provided by operating activities Depreciation 13 12 13 Changes in operating assets and liabilities Other current assets 18 (12 ) 92 Accounts payable and other liabilities 12 3 (52 ) Net cash provided by operating activities 22 184 123 Cash flows from financing activities Payment on notes payable - - (174 ) Net cash used in financing activities - - (174 ) Cash flows from investing activities Fixed asset addition (11 ) - - Collections of note receivable - - 276 Net cash (used) in investing activities (11 ) - 276 Net increase in cash and cash equivalents 11 184 225 Cash and cash equivalents at beginning of year 436 252 27 Cash and cash equivalents at end of year $ 447 $ 436 $ 252 Supplemental disclosures of cash flow information Cash paid for interest on notes payable: $ - $ - $ 5 Cash paid for principal on notes payable: $ - $ - $ 174 26 December 31, 2015throughowns approximately 190 acres of land located in Parkersburg, West Virginia. Located on the land are four structures totaling approximately 53,000 square feet. Of this total area the main industrial / office building contains approximately 24,800 square feet of which as of December 31, 2023 approximately 16,000 of industrial area is leased for $101,000 per annum. wholly owned subsidiaries Mountaineer State Energy, Inc. and Mountaineer State Operations, LLC, operates oil and gas wells and mineral leases in Athens and Meigs Countieswhich were located in Ohio and in Calhoun, Jackson and Roane Counties in West Virginia. As of December 31, 2015 the Company has 153 producing oil & gas wells, 31 non-producing wells and related equipment and mineral leases covering approximately 20,000 acres. Company engaged the firm of independent oil and gas engineers Lee Keeling & Associates, Inc. to estimate the net oil and gas reserves. On the basis of their study, the estimates of future net revenues using a present value discount of 10% were estimated to be $5.9 million at December 31, 2015.NCE also leases and operates a retirement community in King City Oregon, with a capacity of 114 residents.In February 2014 the Company acquired 7.4 acres of undeveloped land in Desoto TX. For $624,000. The Company believes the highest and best use of this property isoperations for the construction and development of multifamily housing. The Company acquired the property for investment purposes. This investment isperiods included in other assetsthis report are reflected as discontinued operations.balance sheet."Company",“Company,” New Concept or "NCE"“NCE”) and are prepared on the basis of accounting principles generally accepted in the United States of America "GAAP".“GAAP.” All significant intercompany transactions and accounts have been eliminated.Depreciation Certain accounting balances have been reclassified to conform to the current year presentation.Amortizationfor in amounts sufficient to relateover the costestimated useful lives of property and equipment to operations over their estimated service lives, ranging from 3 to 40 years. Depreciation is computed bythe related assets using the straight-line method. and amortization expense, which is included in operations,operating expenses, was $151,000, $176,000$13,000, $12,000 and $188,000$13,000 for 2015, 20142023, 2022 and 2013,2021, respectively.Depreciation, Depletion and Amortization of Producing Oil & Gas PropertiesDepreciation, depletion and amortization ("DD&A") of producing properties is computed on the unit-of-production method based on estimated proved oil and gas reserves. While total DD&A expense for the life of a property is limited to the property's total cost, proved reserve revisions result in a change in timing of when DD&A expense is recognized.recorded depletion of mineral rights of $514,000, $510,000 and $650,000recognizes revenues in 2015, 2014 and 2013 respectively.SegmentsThe Company operates two primary business segments; oil and gas operations and retirement facilities. Segment data is provided in "Note N" to these consolidated financial statements.Major PurchaserThe Company sells most of its natural gas production to one purchaser and all of its oil production to one purchaser. While there is an available market for crude oil and natural gas production, we cannot be assured that the loss of this purchaser would not have a material impact on the Company.31Oil and Gas ReservesOur proved oil and gas reserves are estimated by independent petroleum engineers. Reserve engineering is a subjective process that is dependent upon the quality of available data and the interpretation thereof, including evaluations and extrapolations of well flow rates and reservoir pressure. Estimates by different engineers often vary, sometimes significantly. In addition, physical factors such as the results of drilling, testing and production subsequent to the date of an estimate, as well as economic factors such as changes in product prices, may justify revision of such estimates. Because proved reserves are required to be estimated using recent prices of the evaluation, estimated reserve quantities can be significantly impacted by changes in product prices.The standardized measure of discounted future net cash flows and changes in such cash flows are prepared using assumptions required by theaccordance with Financial Accounting Standards Board and(FASB) Accounting Standards Codification (ASC) Topic 606, Revenue from Contracts with Customers. Under this guidance, the Securities and Exchange Commission. Such assumptions include using recent oil and gas prices and year-end costs for estimated future development and production expenditures. Discounted future net cash flowsCompany recognizes revenue when performance obligations under the terms of a contract with a customer are calculatedsatisfied by analyzing exchanges with its customers using a 10% rate. Changesfive-step approach (1) identify the contract(s) with a customer; (2) identify the performance obligation in any of these assumptions couldthe contract(s); (3) determine the transaction price; (4) allocate the transaction price to the performance obligation(s) in the contract(s); and (5) recognize the revenue when (or as) the Company satisfies a performance obligation. The Company derives revenue from rental income from property leases and consulting management fees. The Company’s contracted transaction price is allocated to each distinct performance obligation and recognized as revenue when, or as, the performance obligation is satisfied. The Company’s contracts have a significant impact onsingle performance obligation which are not separately identifiable from other promises in the standardized measure. Accordingly,contracts and is, therefore, not distinct. The Company’s performance obligation is satisfied upon the standardized measure does not represent management's estimated current market valuetransfer of proved reserves. At December 31, 2014,risk of loss to the Company's net book value of oil and natural gas properties exceeded the ceiling amount based on the unweighted arithmetic average of the first day of each month for the 12-month period ended December 31, 2015.Full cost accountingThe Company uses the full cost method of accounting for its investment in oil and natural gas properties. Under this method of accounting, all costs of acquisition, exploration and development of oil and natural gas properties (including such costs as leasehold acquisition costs, geological expenditures, dry hole costs, tangible and intangible development costs and direct internal costs) are capitalized as the cost of oil and natural gas properties when incurred.The full cost method requires the Companycustomer. Revenue related to calculate quarterly, by cost center, a "ceiling," or limitation on the amount of properties that can be capitalized on the balance sheet. To the extent capitalized costs of oil and natural gas properties, less accumulated depletion and related deferred taxes exceed the sum of the discounted future net revenues of proved oil and natural gas reserves, the lower of cost or estimated fair value of unproved properties subject to amortization, the cost of properties not being amortized, and the related tax amounts, such excess capitalized costs are charged to expense. Beginning December 31, 2009, full cost companies use the unweighted arithmetic average first day of the month price for oil and natural gas for the 12-month period preceding the calculation date to calculate the future net revenues of proved reserves. Prior to December 31, 2009, companies used the price in effect at the calculation date and had the option, under certain circumstances, to elect to use subsequent commodity prices if they increased after the calculation date.The Company assesses any unproved oil and gas properties on an annual basis for possible impairment or reduction in value. The Company assesses properties on an individual basis or as a group if properties are individually insignificant. The assessment includes consideration of the following factors, among others: intent to drill; remaining lease term; geological and geophysical evaluations; drilling results and activity; the assignment of proved reserves; and the economic viability of development if proved reserves are assigned. During any period in which these factors indicate an impairment of unproved properties not subject to amortization, the associated costs incurred to date for such properties are then included in unproved properties subject to amortization.Gas gathering assetsGas gathering assets are capitalized as part of the depletable pool and ratably charged to earnings along with other capitalized exploration, drilling and development costs.Office and field equipmentOffice and field equipment are capitalized at cost and depreciated on a straight line basis over their estimated useful lives. Office and field equipment useful lives rangerental income from 5 to 30 years.Revenue recognition and gas imbalancesWe use the sales method of accounting for oil and natural gas revenues. Under the sales method, revenuesproperty leases are recognized based on actual volumes of oilmonthly and natural gas sold to purchasers. Gas imbalances at December 31, 2015 were not significant. New Concept also follows the sales method of accounting for natural gas production imbalances and would recognizeconsulting management fees are recognized quarterly as they are earned over a liability if the existing proved reserves were not adequate to cover an imbalance.32Accounting for LeasesLeases of property, plant and equipment where the Company assumes substantially all the benefits and risks of ownership are classified as finance leases. Finance leases are capitalized at the estimated present value of the underlying lease payments. Each lease payment is allocated between the liability and finance charges so as to achieve a constant rate on the finance balance outstanding. The corresponding rental obligations, net of finance charges, are included in other long-term payables. The interest element of the finance charge is charged to the income statement over the lease period. Property, plant and equipment acquired under finance leasing contracts are depreciated over the useful life of the asset.Leases of assets under which all the risks and benefits of ownership are effectively retained by the lessor are classified as operating leases. Payments made under operating leases are charged to the income statement on a straight-line basis over the period of the lease. When an operating lease is terminated before the lease period has expired, any payment required to be made to the lessor by way of penalty is recognized as an expense in the period in which termination takes place.Revenue RecognitionRental income for residential property leases is recorded when due from residents and is recognized monthly as it is earned, which is not materially different than on a straight-line basis as lease terms are generally for periods of one year or less.Revenues are recognized when products are shipped or services are provided to customers, title is transferred, the sales price is fixed or determinable and collectability is reasonably assured. Costs associated with revenues are recorded in cost of revenues. Production volumes of natural gas are sold immediately and transported via pipeline. Royalties on the production of natural gas either paid in cash or settled through the delivery of volumes. The Company includes royalties in its revenues and cost of revenues when settlement of the royalties is paid in cash, while royalties settled by the delivery of volumes are excluded from revenues and cost of revenues.The Company follows the sales method of accounting for natural gas production imbalances and would recognize a liability if the existing proved reserves were not adequate to cover an imbalance.27 Other Intangible AssetsThe cost of acquired patents, trademarks and licenses is capitalized and amortized using the straight-line method over their useful lives. The carrying amount of each intangible asset is reviewed annually and adjusted for permanent impairment where it is considered necessary.asset'sasset’s fair value.33"Real“Real Estate Sales – Real Estate Sales"Sales”, ("(“ASC 360-20"360-20”). Until the requirements of ASC 360-20 have been met for full profit recognition, sales are accounted for by the installment or cost recovery method, whichever is appropriate.Real Estate Held for SaleAccounting Standards Codification Topic 360, "Property, Plant, & Equipment" ("ASC 360")requires that properties held for sale be reported at the lower of carrying amount or fair value less costs of sale. If a reduction in a held for sale property's carrying amount to fair value less costs of sale is required, a provision for loss is recognized by a charge against earnings. Subsequent revisions, either upward or downward, to a held for sale property's estimated fair value less costs of sale are recorded as an adjustment to the property's carrying amount, but not in excess of the property's carrying amount when originally classified as held for sale. A corresponding charge against or credit to earnings is recognized. Properties held for sale are not depreciated.Asset Retirement ObligationThe Company records an asset retirement obligation liability on the consolidated balance sheets and capitalizes a portion of the cost in "Oil and natural gas properties" during the period in which the obligation is incurred. The asset retirement obligation is further described in Note O.("ASC"(“ASC”) No. 740, "Accounting“Accounting for Income Taxes"Taxes”. ASC 740 requires an asset and liability approach to financial accounting for income taxes. In the event differences between the financial reporting basis and the tax basis of the Company'sCompany’s assets and liabilities result in deferred tax assets, ASC 740 requires an evaluation of the probability of being able to realize the future benefits indicated by such assets. A valuation allowance is provided for a portion or all of the deferred tax assets when there is an uncertainty regarding the Company'sCompany’s ability to recognize the benefits of the assets in future years. Recognition of the benefits of deferred tax assets will require the Company to generate future taxable income. There is no assurance that the Company will generate earnings in future years. Since management could not determine the likelihood that the benefit of the deferred tax asset would be realized, no deferred tax asset was recognized by the Company.Recent Accounting PronouncementsThere were no recent accounting pronouncements that our Company has not implemented that materially affect our consolidated financial statements.RECEIVABLES – PAYABLES – RELATED PARTIESPrimeAsset Management,Opportunity Realty Investors, Inc.Prime (“IOR”), Mr. Bertcher, is a certified public accountant and has a long history in their industry. New Concept made arrangements with the three entities whereby, in addition to his responsibilities to New Concept, Mr. Bertcher would be Chief Financial Officer for the three entities. Mr. Bertcher was paid directly for such services by the contractual advisor for the three companies. Mr. Bertcher resigned as an officer of American Realty Investors, Inc. (“ARI”) and Transcontinental Realty Investors, Inc. (“TCI”) on June 30, 2019, but continued on as an officer of Income Asset Management,Opportunity Realty Investors, Inc. ("PIAMI"(“IOR”) until he resigned December 16, 2021.real estate managementprivately owned investment company that also investsand by virtue of its stock ownership, the controlling shareholder for ARI, which in real estate for its own account.turn is the controlling stockholder of TCI, which is the controlling stockholder of IOR. Mr. Bertcher was an officer of RAI until June 30, 2019.Inc. ("Pillar"(“Pillar”) became the contractual advisor to the three publicly traded entities. Pillar is a real estate management company. Both PIAMIwholly owned subsidiary of RAI and Pillar are indirectly owned byMr. Bertcher serves as a private trust. URC Energy Inc. ("URC") is and has been a significant investor indirector of Pillar. In addition to the Company. URC is indirectly owned by a private trust While the trusts for PIAMI and Pillar and URC are separate they have similar trustees and beneficiaries and thereforerelationship with Mr. Bertcher, the Company has noted PIAMI and Pillar as related parties. Eurenergy Resources, Inc. ("ERC") is an oil & gas company that owned and operated oil and gas wells.Beginning in 2006 the Company made loans to PIAMI and ERC at interest rates higher than the Company believes it could have gotten elsewhere. On May 21, 2009, PIAMI acquired both Eurenergy notes receivable at face value plus accrued interest totaling $3,970,897. Effective May 21, 2009 the Company and PIAMI entered into a new note combing all of the above loans into one note. The loan calls for interest at the prime rate plus 2% with principal and interest payable within 30 days after demand, and if not sooner demanded, on January 31, 2013.At December 31, 2009, the balance due including accrued interest on the note receivable from PIAMI was $11.1 million. During 2010 the note was paid down whereby as of December 31, 2010 the outstanding principal and interest totaled $10.4 million. During the first three quarters of 2011 the Company accrued interest of $360,000 and received $715,000 in payments from PIAMI. In the fourth quarter of 2011 the Company determined that the financial condition of PIAMI had deteriorated and there could be no assurance that the amount owed would or could be collected. The company has recorded a reserve of $10 million (the full balance) for the combined note.34Beginning in 2011, the Company conductedconducts business with Pillar whereby Pillar providedprovides the Company with services including processing payroll, acquiring insurance, Information Technology, Cybersecurity and other administrative matters (rent).matters. The Company believes that by purchasing these services through certain large entities it can get lower costs and better service. Pillar does not charge the Company a fee for providing these services.While separate companies, both PIAMI and The Company reimburses Pillar are both owned by Realty Advisors, Inc. ("RAI"). During 2011 and 2012,for the Company incurred obligations to Pillar totaling approximately $2.1 million. In a joint agreement among Pillar, PIAMI and the Company, Pillar, in 2012, agreed to relieve the Company of its obligation to pay $2.1 million and the Company agreed to reduce the amount owed by PIAMI by a like amount. In 2013 in a similar agreement the Company recorded a $1.6 million recovery on the transaction reduction in the PIAMI obligation.During 2015, the Company incurred obligations to Pillar including thedirect cost of payroll, insurance and other operating expenses. In a joint agreement among Pillar, PIAMI and the Company, Pillar agreed, in lieu of being reimbursed for such expenses, to relieve the Company of its obligation to pay $1.4 million and the Company agreed to reduce the amount owed by PIAMI by a like amount.services.28 Coastland Operations, LLCDuring 2012, the Company and several other defendants settled a lawsuit for $225,000. The Company paid the entire amount and had a note receivable from one of the other defendants, Coastland Operations, LLC (a subsidiary of Arcadian Energy, Inc) for $112,500 representing its share of the settlement Arcadian for a portion of his services. Arcadian, through its subsidiary URC is a significant shareholder of the Company and is therefore considered a related party. In March 2015 the $112,500 plus all accrued interest thereon was paid to the Company.– FAIR VALUE OF FINANCIAL INSTRUMENTSThe following methods and assumptions were used to estimate the fair value of each class of financial instruments for which it is practicable to estimate values.Cash and cash equivalents- The carrying amount approximates fair value because of the short maturity of these instruments.Long-term debt - The fair value of the Company's long-term debt is estimated based on market rates for the same or similar issues. The carrying value of long-term debt approximates its fair value.Notes receivable – The fair value of the note receivable from an affiliate partnership is estimated to approximate fair value based on its short maturity. It is not practical to estimate the fair value of notes receivable from sale of properties because no quoted market exists and there are no comparable debt instruments to provide a basis for valuation.E – NOTES PAYABLENotes payableRECEIVABLE(in thousands): 2015 2014 Notes payable from the acquisition of Mountaineer State Energy, Inc. $ 1,528 $ 1,514 Bank Debt $ 514 $ 795 $ 2,042 $ 2,309 Mountaineer State Energy, Inc. was acquired in 2008. As part of the purchase price the Company issued non-interesting bearing notes with the first payment being required in 2015 and the final payment due in 2032. The balance reflected above is the present value of those obligations.Bank debt represent loans from a bank to finance drilling and equipment at the Company's oil and gas operation. The interest rate ranges from 5% to 5 ½ %. The loans are collateralized by the Company's oil & gas leases as well as real property and equipment.35Aggregate annual principal maturities of long-term debt at December 31, 2015(in thousands):Schedule of notes receivable Interest Rate 2023 2022 American Realty Investors, Inc. (a related party) receivable upon maturity in September 2025 6% $ 3,542 $ 3,542 follows (in thousands):2016 831 2017 187 2018 175 2019 142 2020 127 Thereafter 580 $ 2,042 Schedule of property, plant and equipment 2023 2022 Land and improvements $ 432 $ 432 Buildings and improvements 352 341 Total fixed assets 784 773 Less: Accumulated depreciation (155 ) (142 ) Net Fixed Assets $ 629 $ 631 OPERATING LEASESThe Company leases a retirement communityINCOME TAXESan operating leasethe asset and liability method, which expires January 31, 2017, with an option to renew for an additional five-year period. The Company also has operating leases for equipmentrequires the recognition of deferred tax assets and office space. The leases generally provide that the Company pay property taxes, insurance and maintenance.Future minimum paymentsliabilities for the primary lease following December 31, 2015expected future tax consequences of events that have been included in the financial statements. Under this method, deferred tax assets and liabilities are as follows (in thousands):2016 1,000 2017 83 $ 1,083 Lease expensedetermined on the basis of the differences between the financial statement and tax basis of liabilities using enacted tax rates in 2015, 2014 and 2013 was $980,000, $961,000, and $942,000 respectively.NOTE G - EARNINGS PER SHAREfollowing table sets fortheffect of the computationschange in tax rates on deferred tax assets are liabilities recognized in income in the period that includes the enactment date. We recognize deferred tax assets to the extent that we believe these assets are more likely than not to be realized. If we determine that we would be able to release our deferred tax asset in the future in excess of basic and diluted earnings per share (in thousands, except per share data): Year Ended December 31, 2015 2014 2013 Basic Earnings Per Share: Numerator: Net income from continuing operations $ (2,622 ) $ (779 ) $ 426 Denominator: Weighted average shares outstanding 1,947 1,947 1,947 Basic earnings (loss) per share from continuing operations (1.35 ) (0.40 ) 0.22 NOTE H – INCOME TAXES2015,2023, the Company had net operating loss carry forwards of approximately $9.3$7.5 million, which expire between 20162024 and 2030.2015, 2014, 20132023, 2022, 2021 are subject to examination, by the IRS, generally for three years after they are filed.36The following table presents the principal reasons for the difference between the Company's effective tax rate and the United States statutory income tax rate. 2015 2014 2013 Earned income tax at statutory rate $ 0 $ 0 $ 149 Net operating loss utilization 0 0 (149 ) Deferred tax asset from NOL carry forwards 3,270 2,927 2,464 Valuation allowance (3,270 ) (2,927 ) (2,464 ) Reported income tax expense (benefit) $ 0 $ 0 $ 0 Effective income tax rate 0.00 % 0.00 % 0.00 % The Company believes that it is more likely than not the benefit of NOL carryforwards will notbe realized. Therefore, a valuation allowance on the related deferred tax assets has been recorded.29Schedule of effective income tax rate 2023 2022 2021 Earned income tax at statutory rate of 21% $ - $ 39 $ 15 Net operating loss utilization $ - (39 ) (15 ) Deferred tax asset from NOL carry forwards $ - 1,583 1,735 Valuation allowance $ - (1,583 ) (1,735 ) Reported income tax expense (benefit) $ - $ - $ - Effective income tax rate 0.00 % 0.00 % 0.00 % IG – STOCKHOLDERS'STOCKHOLDERS’ EQUITY Preferred stock consists of the following (amounts in thousands): Year Ended December 31, 2015 2014 1 1 Schedule of stockholders equity Year Ended December 31, 2023 2022 Series B convertible preferred stock, $10 par value, liquidation value of $100, authorized 100 shares, issued and outstanding one share 1 1 J – OTHER INCOME (EXPENSE)Other income (expense) consists ofH - CONCENTRATIONSfollowing: (amounts in thousands) Year ended December 31, 2015 2014 2013 Litigation costs for the Chesapeake matter $ - - (382 ) Income for gas held by Chesapeake - - 200 Other (32 ) 197 (7 ) $ (32 ) $ 197 $ (189 ) NOTE K – CONTINGENCIESCarlton Energy Group, LLCInFederal Deposit Insurance Corporation’s Transaction Account Guarantee Program which insures depositors up to $250,000. At December 2006, Carlton Energy Group, LLC ("Carlton") instituted litigation against an individual, Eurenergy Resources Corporation ("Eurenergy") and several other entities including New Concept Energy, Inc., which was then known as CabelTel International Corporation (the "Company") alleging tortuous conduct, breach of contract and other matters and as to31, 2023, the Company that it was the alter ego of Eurenergy. The Carlton claims were based upon an alleged tortuous interference with a contract by the individual and Eurenergy related to the right to explore a coal bed methane concession in Bulgaria which had never (and has not experienced losses with respect to this day) produced any hydrocarbons. At no time during the pendency of this project or since did the company or any of its officers or directors have any interest whatsoever in the success or failure of the so-called "Bulgaria Project". However, in the litigation, Carlton alleged that the Company was the alter-ego of certain of the other Defendants including Eurenergy.37Following a jury trial in 2009, the Trial Court (295th District Court of Harris County, Texas) reduced the actual damages found by the jury of $66.5 million and entered judgment against EurEnergy and the individual jointly and severally for $31.12 million in actual damages on its tortuous-interference claim and the Court further assessed exemplary damages against The individual and EurEnergy in the amount of $8.5 million each. The Court granted a judgment for the Company that it was not the alter ego of any of the other parties and thereby would not incur any damages.Cross appeals were filed by Carlton, the individual and EurEnergy to the Court of Appeals for the First District of Texas (the "Court of Appeals") which rendered its opinion on February 14, 2012. The Court of Appeals opinion, among other things, reinstated the jury award of actual damages jointly and severely against the individual and EurEnergy in the amount of $66.5 million and overturned the Trial Court's ruling favorable to the Company rendering a judgment for that amount plus exemplary damages against the Company as the "alter ego" of Eurenergy.The Company and the other defendants filed a Petition for Review of the Court of Appeals Opinion with the Supreme Court of the State of Texas. On May 8, 2015, the Supreme Court of Texas affirmed, in part, and reversed, in part, the Court of Appeals Judgment, remanding the case to that Court for further proceedings. In its opinion, the Supreme Court concluded that the evidence supports the Jury's verdict that the individual used the Company and other entities, that it would be unjust to require Carlton to treat them separately and found that the Company was an alter ego as a matter of law. The Supreme Court determined that the Court of Appeals erred in reinstating the jury's verdict on damages in the amount of $66.5 million as the amount was speculative and not supported by competent evidence. The Court declined to reinstate the trial court's judgment of $31.16 million. The Supreme Court did rule that there was some evidence to support an award of actual damages and therefore remanded the case to the Court of Appeals to make a factual sufficiency determination, if possible, as to as to the amount. The parties are awaiting the Court's rulingManagement's preliminary analysis of these developments suggests it is reasonably possible that the claim will result in an unfavorable outcome. Management notes that in connection with the original appeal, the individual defendant deposited alternative security with the Court to supersede the judgment which the Court determined to have a valuebank balances in excess of $56 million.government provided insurance. Management believes that the maximum exposure would be in an amount significantly less than the amount on deposit. Accordingly, management believes that any adverse outcome is fully secured by that deposit.no significant concentration of credit risk exists with respect to these cash balances at December 31, 2023.30 OtherThe Company has been named as a defendant in other lawsuits in the ordinary course of business. Management is of the opinion that these lawsuits will not have a material effect on the financial condition, results of operations or cash flows of the Company.LI – OPERATING SEGMENTSOperations and total assets:Operations:Schedule of segment reporting information Year ended December 31, 2023 Current
Operations Corporate Total Operating revenue $ 152 $ - $ 152 Operating expenses 44 338 382 Depreciation 13 - 13 Total Operating Expenses 57 338 395 Interest income - 222 222 Segment operating income (loss) $ 95 $ (116 ) $ (21 ) Year ended December 31, 2022 Current
Operations Corporate Total Operating revenue $ 212 $ - $ 212 Operating expenses Depreciation 45 317 362 Impairment of oil and gas properties 12 - 12 Interest income 57 317 374 Interest expense - 212 212 Segment operating income - 131 131 $ 155 $ 26 $ 181 Year ended December 31, 2021 Current
Operations Corporate Total Operating revenue 101 $ - $ 101 Operating expenses 65 360 $ 425 Depreciation 12 - $ 12 Total Operating Expenses 77 360 $ 437 Interest income - 220 $ 220 Interest expense - (5 ) $ (5 ) Other income - 191 $ 191 Segment operating income $ 24 $ 46 $ 70 31 38 Oil and Gas Operations Operating revenue $ 820 $ 2,997 $ - $ 3,817 Operating expenses 1,183 2,603 605 $ 4,391 Depreciation, depletion and amortization 617 62 - $ 679 Impairment of oil and gas properties 2,717 - - $ 2,717 Total Operating Expenses 4,517 2,665 605 7,787 Interest expense (62 ) - - $ (62 ) Other income - - 1,398 $ 1,398 Interest income - 12 $ 12 Segment operating income $ (3,760 ) $ 333 $ 805 $ (2,622 ) Assets $ 7,420 $ 430 $ 1,025 $ 8,875 Oil and Gas Operations Operating revenue $ 1,489 $ 2,874 $ - $ 4,363 Operating expenses 1,233 2,512 823 $ 4,568 Depreciation, depletion and amortization 620 65 - $ 685 Impairment of oil and gas properties - - - $ - Total Operating Expenses 1,853 2,577 823 5,253 Interest expense 91 - - $ 91 Other income (19 ) 36 180 $ 197 Interest income - 5 $ 5 Segment operating income $ (474 ) $ 333 $ (638 ) $ (779 ) Assets $ 10,621 $ 445 $ 1,208 $ 12,274 Oil and Gas Operations Operating revenue $ 1,477 $ 2,745 $ - $ 4,222 Operating expenses 1,213 2,436 498 $ 4,147 Depreciation, depletion and amortization 654 61 2 $ 717 Impairment of oil and gas properties 200 - - $ 200 Total Operating Expenses 2,067 2,497 500 5,064 Interest expense 114 - - $ 114 Other income 29 - 1,344 $ 1,373 Interest income - 9 9 Segment operating income $ (675 ) $ 248 $ 853 $ 426 Assets $ 11,859 $ 842 $ 607 $ 13,308 39MJ - QUARTERLY DATA (UNAUDITED)Company'sCompany’s selected quarterly information for the years ended December 31, 2015, 20142023, 2022 and 2013.2021. Amounts shown are in thousands except per share amounts. First Second Third Fourth Year ended December 31, 2015 Quarter Quarter Quarter Quarter Revenue $ 889 $ 1,003 $ 1,004 $ 824 Operating (expense) (1,125 ) (1,100 ) (1,195 ) (1,045 ) Corporate general and administrative expense (154 ) (155 ) (176 ) (120 ) Impairment of natural gas and oil properties - - - (2,717 ) Other income (expense) net 704 362 292 (10 ) Net income (loss) from continuing operations 314 110 (75 ) (2,622 ) Income (loss) allocable to common shareholders $ 314 $ 110 $ (75 ) (2,622 ) Income (loss) per common share – basic $ 0.16 $ 0.06 $ 0.04 $ (1.35 ) First Second Third Fourth Year ended December 31, 2014 Quarter Quarter Quarter Quarter Revenue $ 1,069 $ 1,213 $ 1,131 $ 950 Operating (expense) (1,119 ) (1,053 ) (1,087 ) (1,171 ) Corporate general and administrative expense (192 ) (205 ) (208 ) (218 ) Impairment of natural gas and oil properties - - - Other income (expense) net 202 (54 ) (40 ) 3.00 Net income (loss) from continuing operations (40 ) (99 ) (204 ) (436 ) Income (loss) allocable to common shareholders $ (40 ) $ (99 ) $ (204 ) (436 ) Income (loss) per common share – basic $ (0.02 ) $ (0.05 ) $ (0.10 ) $ (0.23 ) First Second Third Fourth Year ended December 31, 2013 Quarter Quarter Quarter Quarter Revenue $ 1,020 $ 1,050 $ 1,018 $ 1,134 Operating (expense) (1,078 ) (1,112 ) (1,102 ) (1,072 ) Corporate general and administrative expense (173 ) (170 ) (170 ) (129 ) Impairment of natural gas and oil properties (200 ) Other income (expense) net 262 370 387 391 Net income (loss) from continuing operations 31 138 133 124 Income (loss) allocable to common shareholders $ 31 $ 138 $ 133 $ 124 Income (loss) per common share – basic $ 0.02 $ 0.07 $ 0.07 $ 0.06 40Schedule of quarterly financial information First Second Third Fourth Year ended December 31, 2023 Quarter Quarter Quarter Quarter Revenue $ 45 $ 35 $ 35 $ 37 Operating expense (12 ) (14 ) (15 ) (16 ) Corporate general and administrative expense (68 ) (81 ) (70 ) (119 ) Other income 52 54 57 59 Income (loss) allocable to common shareholders 17 (6 ) 7 (39 ) Income (loss) per common share – basic and diluted $ $ ) $ $ First Second Third Fourth Year ended December 31, 2022 Quarter Quarter Quarter Quarter Revenue $ 45 $ 47 $ 63 $ 57 Operating expense (12 ) (13 ) (18 ) (14 ) Corporate general and administrative expense (80 ) (80 ) (71 ) (86 ) Other income 52 184 53 54 Income allocable to common shareholders 5 138 27 11 Income per common share – basic and diluted $ $ $ $ First Second Third Fourth Year ended December 31, 2021 Quarter Quarter Quarter Quarter Revenue $ 26 $ 26 $ 25 $ 25 Operating expense (18 ) (20 ) (34 ) (5 ) Corporate general and administrative expense (74 ) (111 ) (53 ) (122 ) Other income 145 154 54 53 Income (loss) allocable to common shareholders 79 49 (8 ) (49 ) Income (loss) per common share – basic and diluted $ $ $ ) $ N - SUPPLEMENTARY FINANCIAL INFORMATION ON OIL AND NATURAL GAS EXPLORATION, DEVELOPMENT AND PRODUCTION ACTIVITIES (UNAUDITED)Company's net ownership interests in estimated quantitiesdate to which events occurring after December 31, 2023, the date of proved oil and natural gas reserves and changes in net proved reserves, allthe most recent balance sheet, have been evaluated for possible adjustments to the financial statements or disclosure is March 28, 2024, which is the date of which are located in the continental United States, are summarized below: 2015 Proved developed and undeveloped reserves - January 1, 2015 2,866 139 Purchase of oil and natural gas properties in place 0 0 Discoveries and exclusions 0 0 Revisions (94) (69) Sales of oil and gas properties in place 0 0 Production (168) (12) December 31, 2015 2,604 58 Proved developed at beginning of year 698 70 Proved developed reserves at end of year 504 59 2014 Proved developed and undeveloped reserves - January 1, 2014 2,887 173 Purchase of oil and natural gas properties in place 0 0 Discoveries and exclusions 0 0 Revisions 138 (24) Sales of oil and gas properties in place 0 0 Production (159) (10) December 31, 2014 2,866 139 Proved developed at beginning of year 719 105 Proved developed reserves at end of year 698 70 41 2015 2014 Oil and gas sales $ 820 $ 1,489 Operating expenses (1,183 ) (1,233 ) Depreciation, depletion and amortization (617 ) (620 ) Impairment of oil & gas properties (2,717 ) - Results of operations $ (3,697 ) $ (364 ) The following table reflects the standardized measure of future net cash flows related to ourproved reserves 2015 2014 Future oil and gas cash inflows $ 14,326 $ 25,595 Future oil & gas operating expenses (2,554 ) (4,170 ) Future development costs (1,982 ) (2,983 ) Future tax expense (998 ) (1,666 ) Future net cash flows $ 8,792 $ 16,776 10% discount to reflect timing of cash flows (2,878 ) (5,998 ) $ 5,914 $ 10,778 The following table presents the changes in our total proved undeveloped reserves. Gas Oil (MMCF) (MBBLS) Proved undeveloped reserves as of December 31, 2013 2,168 68 Revaluation of undeveloped reserves - - Conversion to proved developed reserves - Proved undeveloped reserves as of December 31, 2014 2,168 68 Conversion to proved developed reserves Revaluation of undeveloped reserves (68) (68) Proved undeveloped reserves as of December 31, 2015 2,100 0 The following table reflects the capitalized costs relating to oil and gas producing activities. 2015 2014 Property acquisition costs: Proved properties $ 9,116 $ 11,496 Unproved properties - - Accumulated depreciation, depletion and amortization and valuation allowance (3,202 ) (,2687 ) Net capitalized costs $ 5,914 $ 8,809 42The following table reflects the costs incurred in oil and gas property acquisition, exploration and development activities. 2015 2014 Property acquisition costs: Proved properties $ - $ - Unproved properties - - Exploration costs - - Development costs 206 129 Total cost incurred $ 206 $ 129 The following table reflects revenues and expenses directly associated with our oil and gas producing activities, including general and administrative expenses directly related to such producing activities. They do not include any allocation of interest costs or general corporate overhead and, therefore, are not necessarily indicative of the contribution to net earnings of our oil and gas operations. Income tax expense has been calculated by applying statutory income tax rates to oil and gas sales after deducting costs, including depreciation, depletion and amortization and after giving effect to permanent differences.43NOTE O – ASSET RETIREMENT OBLIGATIONThe Company records an asset retirement obligation (ARO) when the total depth of a drilled well is reached and the Company can reasonably estimate the fair value of an obligation to perform site reclamation, dismantle facilities or plug and abandon costs. The Company records the ARO liability on the consolidated balance sheets and capitalizes a portion of the cost in "Oil and natural gas properties" during the period in which the obligation is incurred. In general, the amount of an ARO and the costs capitalized will be equal to the estimated future cost to satisfy the abandonment obligation using current prices that are escalated by an assumed inflation factor up to the estimated settlement date and adjusted for the Company's credit risk. This amount is then discounted back to the date that the abandonment obligation was incurred using an assumed cost of funds for the Company. After recording these amounts, the ARO is accreted to its future estimated value using the same assumed cost of funds. The additional capitalized costs are depreciated on a unit-of-production basis or straight-line basis.In the third quarter of 2012, the Company re-evaluated its method of plugging abandoned wells and determined by doing so in-house it could lower the cost. Based upon the Company's current calculations, we have established a sufficient reserve, for accounting purposes, to plug the existing wells when necessary. 2015 2014 Asset retirement obligation, January 1 $ 2,770 $ 2,770 Acquisition of oil and gas properties - - Revisions in the estimated cash flows - - Liability incurred upon acquiring and drilling wells - - Liability settled upon plugging and abandoning wells - - Accretion of discounnt expense - - Asset retirement obligation, December 31 $ 2,770 $ 2,770 NOTE P –SUBSEQUENT EVENTSThe Company has evaluated subsequent events through March 30, 2016, the date the financial statements were available to be issued, and has determinedissued. There are no subsequent events that there are nonewould require an adjustment to be reported. the financial statements.32 Exhibit
DesignationExhibit Description 3.1 Articles of Incorporation of Medical Resource Companies of America (incorporated by reference to Exhibit 3.1 to Registrant’s Form S-4 Registration Statement No. 333-55968 dated December 21, 1992) 3.2 Amendment to the Articles of Incorporation of Medical Resource Companies of America (incorporated by reference to Exhibit 3.5 to Registrant’s Form 8-K dated April 1, 1993) 33 45 NEW CONCEPT ENERGY, INC. March 30, 201629, 2024/s/ Gene S. Bertcher Gene S. Bertcher, Principal Executive Officer, President and Chief Financial Officer Signature Title Date Chairman, President, Principal Executive Officer, Chief Financial Officer and Director March 30, 201629, 2024Director March 30, 201629, 2024James HuffsticklerJames HuffsticklerDirector March 30, 201629, 2024Director March 30, 201629, 2024Victor L. LundVictor L. LundDirector March 30, 201629, 202446