Cover
Cover - shares | 9 Months Ended | |
Sep. 30, 2021 | Nov. 09, 2021 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | Sep. 30, 2021 | |
Document Fiscal Period Focus | Q3 | |
Document Fiscal Year Focus | 2021 | |
Current Fiscal Year End Date | --12-31 | |
Entity File Number | 000-08187 | |
Entity Registrant Name | NEW CONCEPT ENERGY, INC. | |
Entity Central Index Key | 0000105744 | |
Entity Tax Identification Number | 75-2399477 | |
Entity Incorporation, State or Country Code | NV | |
Entity Address, Address Line One | 1603 LBJ Freeway | |
Entity Address, Address Line Two | Suite 800 | |
Entity Address, City or Town | Dallas | |
Entity Address, State or Province | TX | |
Entity Address, Postal Zip Code | 75234 | |
City Area Code | (972) | |
Local Phone Number | 407-8400 | |
Title of 12(b) Security | Common Stock, par value $0.01 | |
Trading Symbol | GBR | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 5,131,934 |
CONSOLIDATED BALANCE SHEETS (un
CONSOLIDATED BALANCE SHEETS (unaudited) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Current assets | ||
Cash and cash equivalents | $ 249 | $ 27 |
Current portion note receivable (including $3,637 and $3,631 in 2021 and 2020 from related parties | 3,596 | 3,683 |
Other current assets | 38 | 92 |
Total current assets | 3,883 | 3,802 |
Property and equipment, net of depreciation | ||
Land, buildings and equipment | 647 | 656 |
Note receivable | 153 | |
Total assets | 4,530 | 4,611 |
Current liabilities | ||
Accounts payable - (including $33 and $55 due to related parties in 2021 and 2020) | 66 | 80 |
Accrued expenses | 19 | 32 |
Current portion of long term debt | 52 | |
Total current liabilities | 85 | 164 |
Long-term debt | ||
Notes payable less current portion | 122 | |
Total liabilities | 85 | 286 |
Stockholders' equity | ||
Preferred stock, Series B | 1 | 1 |
at September 30, 2021 and December 31, 2020 | 51 | 51 |
Additional paid-in capital | 63,579 | 63,579 |
Accumulated deficit | (59,186) | (59,306) |
Total shareholder equity | 4,445 | 4,325 |
Total liabilities & equity | $ 4,530 | $ 4,611 |
CONSOLIDATED BALANCE SHEETS (_2
CONSOLIDATED BALANCE SHEETS (unaudited) (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Statement of Financial Position [Abstract] | ||
Note receivable from related party | $ 3,637 | $ 3,631 |
Accounts Payable, Related Parties, Current | $ 33 | $ 55 |
Common Stock, Par or Stated Value Per Share | $ 0.01 | $ 0.01 |
Common Stock, Shares Authorized | 100,000,000 | 100,000,000 |
Common Stock, Shares, Issued | 5,131,934 | 5,131,934 |
Common Stock, Shares, Outstanding | 5,131,934 | 5,131,934 |
CONSOLIDATED STATEMENT OF OPERA
CONSOLIDATED STATEMENT OF OPERATIONS (unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Revenue | ||||
Rent | $ 25 | $ 25 | $ 76 | $ 76 |
Operating expenses | ||||
Operating Expenses | 34 | 15 | 71 | 46 |
Corporate general and administrative | 53 | 65 | 238 | 296 |
Total operating expenses | 87 | 80 | 309 | 342 |
Operating earnings (loss) | (62) | (55) | (233) | (266) |
Other income (expense) | ||||
Interest income from a related party | 53 | 54 | 159 | 172 |
Interest income from a third party | 2 | 3 | 8 | 12 |
Interest expense | (1) | (3) | (5) | (9) |
Other income (expense), net | 83 | 191 | 83 | |
54 | 137 | 353 | 258 | |
Earnings (loss) from continuing operations | (8) | 82 | 120 | (8) |
Discontinued Operations | ||||
Loss from discontinued operations | (38) | (182) | ||
Gain from disposal of oil & gas operations | 2,138 | 2,138 | ||
2,100 | 1,956 | |||
Earnings (loss) applicable to common shares | $ (8) | $ 2,182 | $ 120 | $ 1,948 |
Net income (loss) per common share-basic and diluted | $ 0.01 | $ 0.43 | $ 0.02 | $ 0.38 |
Weighted average common and equivalent shares outstanding - basic | 5,132 | 5,132 | 5,132 | 5,132 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Cash flows from operating activities | ||
Net Income (loss) from Continuing Operations | $ 120 | $ (8) |
Net Income (loss) from Disontinued Operations | 1,956 | |
Adjustments to reconcile net income to net cash provided by (used in) operating activities | ||
Gain on sale of oil and gas operations | (2,138) | |
Depreciation and amortization | 27 | 13 |
Other current and non-current assets | 141 | (125) |
Accounts payable and other liabilities | (27) | (189) |
Net cash provided by (used) in operating activities | 261 | (491) |
Cash flows from financing activities | ||
Payment on note payable | (192) | (35) |
Net cash provided by (used in) financing activities | (192) | (35) |
Cash flows from investing activities | ||
Proceeds for sale of discontinued operations | 85 | |
Receipt on note receivable | 153 | 461 |
Net cash provided by (used in) financing activities | 153 | 546 |
Net increase (decrease) in cash and cash equivalents | 222 | 20 |
Cash and cash equivalents at beginning of year | 27 | 22 |
Cash and cash equivalents at end of period | 249 | 42 |
Supplemental disclosures of cash flow information | ||
Cash paid for interest on notes payable | $ 5 | $ 9 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (Unaudited) - USD ($) $ in Thousands | Series B Preferred Stock [Member] | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Total |
Beginning balance, value at Dec. 31, 2019 | $ 1 | $ 51 | $ 63,579 | $ (61,222) | $ 2,409 |
Shares, Outstanding, Beginning Balance at Dec. 31, 2019 | 1 | 5,132 | |||
Net Income | 1,948 | 1,948 | |||
Ending balance, value at Sep. 30, 2020 | $ 1 | $ 51 | 63,579 | (59,274) | 4,357 |
Shares, Outstanding, Ending Balance at Sep. 30, 2020 | 1 | 5,132 | |||
Beginning balance, value at Jun. 30, 2020 | $ 1 | $ 51 | 63,579 | (61,456) | 2,175 |
Shares, Outstanding, Beginning Balance at Jun. 30, 2020 | 1 | 5,132 | |||
Net Income | 2,182 | 2,182 | |||
Ending balance, value at Sep. 30, 2020 | $ 1 | $ 51 | 63,579 | (59,274) | 4,357 |
Shares, Outstanding, Ending Balance at Sep. 30, 2020 | 1 | 5,132 | |||
Beginning balance, value at Dec. 31, 2020 | $ 1 | $ 51 | 63,579 | (59,306) | 4,325 |
Shares, Outstanding, Beginning Balance at Dec. 31, 2020 | 1 | 5,132 | |||
Net Income | 120 | 120 | |||
Ending balance, value at Sep. 30, 2021 | $ 1 | $ 51 | 63,579 | (59,186) | 4,445 |
Shares, Outstanding, Ending Balance at Sep. 30, 2021 | 1 | 5,132 | |||
Beginning balance, value at Jun. 30, 2021 | $ 1 | $ 51 | 63,579 | (59,178) | 4,453 |
Shares, Outstanding, Beginning Balance at Jun. 30, 2021 | 1 | 5,132 | |||
Net Income | (8) | (8) | |||
Ending balance, value at Sep. 30, 2021 | $ 1 | $ 51 | $ 63,579 | $ (59,186) | $ 4,445 |
Shares, Outstanding, Ending Balance at Sep. 30, 2021 | 1 | 5,132 |
BASIS OF PRESENTATION
BASIS OF PRESENTATION | 9 Months Ended |
Sep. 30, 2021 | |
Accounting Policies [Abstract] | |
BASIS OF PRESENTATION | NOTE A: BASIS OF PRESENTATION The accompanying unaudited consolidated financial statements include the accounts of New Concept Energy, Inc. and its majority-owned subsidiaries (collectively, “NCE” or the “Company”). All significant intercompany transactions and accounts have been eliminated. Certain reclassifications have been made to the prior year revenue and operating expense amounts in the statement of operations to conform to the current year presentation. The unaudited financial statements included herein have been prepared by the Company without audit, pursuant to the rules and regulations of the Securities and Exchange Commission. The financial statements reflect all adjustments that are, in the opinion of management, necessary to fairly present such information. All such adjustments are of a normal recurring nature. Although the Company believes that the disclosures are adequate to make the information presented not misleading, certain information and footnote disclosures, including a description of significant accounting policies normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America, have been condensed or omitted pursuant to such rules and regulations. These financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ending December 31, 2020. Operating results for the three and nine month periods ended September 30, 2021 are not necessarily indicative of the results that may be expected for any subsequent quarter or for the fiscal year ending December 31, 2021. |
NATURE OF OPERATIONS
NATURE OF OPERATIONS | 9 Months Ended |
Sep. 30, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
NATURE OF OPERATIONS | NOTE B: NATURE OF OPERATIONS The Company also 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 approximately 16,000 square feet is leased at a rate of $ 101,000 |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 9 Months Ended |
Sep. 30, 2021 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE C: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES We consider accounting policies related to our estimates of depreciation amortization and depletion, segments, oil and gas properties, oil and gas reserves, gas gathering assets, office and field equipment, revenue recognition and gas imbalances, leases, revenue recognition for real estate operations, impairment, and sales of real estate as significant accounting policies. The policies include significant estimates made by management using information available at the time the estimates are made. However, these estimates could change materially if different information or assumptions were used. These policies are summarized in our Annual Report on Form 10-K for the year ended December 31, 2020. |
DISCONTINUED OPERATIONS
DISCONTINUED OPERATIONS | 9 Months Ended |
Sep. 30, 2021 | |
Accounting Policies [Abstract] | |
DISCONTINUED OPERATIONS | NOTE D: DISCONTINUED OPERATIONS On August 31, 2020, the Company sold its entire oil and gas operation for $ 85,000 2,745,000 2,138,000 Also included in discontinued operations are net operating expenses the company incurred during the periods presented. For the three and nine months ended September 30, 2020, the Company recorded operating losses of$ 38,000 182,000 |
LIQUIDITY
LIQUIDITY | 9 Months Ended |
Sep. 30, 2021 | |
Liquidity | |
LIQUIDITY | NOTE E: LIQUIDITY The Company’s ability to meet current cash obligations relies on cash received from current operations and the collection of notes receivable. The Company is evaluating business opportunities to provide both additional income and cash flow. |
CONTINGENCIES
CONTINGENCIES | 9 Months Ended |
Sep. 30, 2021 | |
Accounting Policies [Abstract] | |
CONTINGENCIES | NOTE F: CONTINGENCIES |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 9 Months Ended |
Sep. 30, 2021 | |
Accounting Policies [Abstract] | |
SUBSEQUENT EVENTS | NOTE G: SUBSEQUENT EVENTS The Company has evaluated subsequent events through November 9, 2021, the date the financial statements were available to be issued and determined that there are none to be reported. |
NATURE OF OPERATIONS (Details N
NATURE OF OPERATIONS (Details Narrative) | 9 Months Ended |
Sep. 30, 2021USD ($) | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Lease Revenue per Annum | $ 101,000 |
DISCONTINUED OPERATIONS (Detail
DISCONTINUED OPERATIONS (Details Narrative) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Aug. 31, 2020 | |
Accounting Policies [Abstract] | ||||
Value Oil and Gas Operation Sold For | $ 85,000 | |||
Results of Operations, Accretion of Asset Retirement Obligations | $ 2,745,000 | |||
Gain (Loss) on Disposition of Property Plant Equipment | $ 2,138,000 | |||
Discontinued Operation, Gain (Loss) on Disposal of Discontinued Operation, Net of Tax | $ 38,000 | $ 182,000 |