New Concept Energy (GBR) 10-Q 13 Aug 24 2024 Q2 Quarterly report Financial data

Cover

Cover - shares	6 Months Ended
	Jun. 30, 2024	Aug. 13, 2024
Cover [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Quarterly Report	true
Document Transition Report	false
Document Period End Date	Jun. 30, 2024
Document Fiscal Period Focus	Q2
Document Fiscal Year Focus	2024
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	Jun. 30, 2024	Dec. 31, 2023
Current assets
Cash and cash equivalents	$ 416	$ 447
Other current assets	40	12
Total current assets	456	459
Property and equipment, net of depreciation
Land, buildings and equipment	622	629
Note receivable - related party	3,542	3,542
Total assets	4,620	4,630
Current liabilities
Accounts payable	21	36
Accrued expenses	39	39
Total current liabilities	60	75
Stockholders' equity
Preferred stock, Series B, $10 par value; authorized 100,000 shares, 1 issued and outstanding at June 30, 2024 and December 31, 2023	1	1
Common stock, $.01 par value; authorized, 100,000,000 shares; issued and outstanding, 5,131,934 shares at June 30, 2024 and December 31, 2023	51	51
Additional paid-in capital	63,579	63,579
Accumulated deficit	(59,071)	(59,076)
Total shareholders' equity	4,560	4,555
Total liabilities & equity	$ 4,620	$ 4,630

CONSOLIDATED BALANCE SHEETS (_2

CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - $ / shares	Jun. 30, 2024	Dec. 31, 2023
Statement of Financial Position [Abstract]
Preferred stock, par or stated value per share	$ 10	$ 10
Preferred stock, shares authorized	100,000	100,000
Preferred stock, shares issued	1	1
Preferred stock, shares outstanding	1	1
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		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Revenue
Total Revenues	$ 37	$ 35	$ 73	$ 80
Operating Expenses
Operating Expenses	12	14	25	26
Corporate general and administrative	78	81	156	149
Total Operating Expenses	90	95	181	175
Operating loss	(53)	(60)	(108)	(95)
Other Income
Interest income  from related parties	56	54	113	106
Total Other Income	56	54	113	106
Net income (loss) applicable to common shares	$ 3	$ (6)	$ 5	$ 11
Net income (loss) per common share-basic	$ 0.01	$ (0.01)	$ 0.01	$ 0.01
Net income (loss) per common share-diluted	$ 0.01	$ (0.01)	$ 0.01	$ 0.01
Weighted average common and equivalent shares outstanding - basic and diluted	5,132	5,132	5,132	5,132
Rent [Member]
Revenue
Total Revenues	$ 25	$ 26	$ 50	$ 51
Management Fee [Member]
Revenue
Total Revenues	$ 12	$ 9	$ 23	$ 29

CONSOLIDATED STATEMENTS OF CHAN

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (Unaudited) - USD ($) $ in Thousands	Preferred Series B [Member]	Common Stock [Member]	Additional Paid-in Capital [Member]	Retained Earnings [Member]	Total
Beginning balance, value at Dec. 31, 2022	$ 1	$ 51	$ 63,579	$ (59,055)	$ 4,576
Beginning balance, shares at Dec. 31, 2022	1	5,132
Net Income				11	11
Ending balance, value at Jun. 30, 2023	$ 1	$ 51	63,579	(59,044)	4,587
Ending balance, shares at Jun. 30, 2023	1	5,132
Beginning balance, value at Mar. 31, 2023	$ 1	$ 51	63,579	(59,038)	4,593
Beginning balance, shares at Mar. 31, 2023	1	5,132
Net Income				(6)	(6)
Ending balance, value at Jun. 30, 2023	$ 1	$ 51	63,579	(59,044)	4,587
Ending balance, shares at Jun. 30, 2023	1	5,132
Beginning balance, value at Dec. 31, 2023	$ 1	$ 51	63,579	(59,076)	4,555
Beginning balance, shares at Dec. 31, 2023	1	5,132
Net Income				5	5
Ending balance, value at Jun. 30, 2024	$ 1	$ 51	63,579	(59,071)	4,560
Ending balance, shares at Jun. 30, 2024	1	5,132
Beginning balance, value at Mar. 31, 2024	$ 1	$ 51	63,579	(59,074)	4,557
Beginning balance, shares at Mar. 31, 2024	1	5,132
Net Income				3	3
Ending balance, value at Jun. 30, 2024	$ 1	$ 51	$ 63,579	$ (59,071)	$ 4,560
Ending balance, shares at Jun. 30, 2024	1	5,132

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023
Cash flows from operating activities
Net Income	$ 5	$ 11
Adjustments to reconcile net income to net cash provided by (used in) operating activities
Depreciation, depletion and amortization	7	6
Other current assets	(28)	(15)
Accounts payable and other liabilities	(15)	(6)
Net cash used in operating activities	(31)	(4)
Net decrease in cash and cash equivalents	(31)	(4)
Cash and cash equivalents at beginning of year	447	436
Cash and cash equivalents at end of period	$ 416	$ 432

BASIS OF PRESENTATION

BASIS OF PRESENTATION	6 Months Ended
	Jun. 30, 2024
Accounting Policies [Abstract]
BASIS OF PRESENTATION	NOTE A: BASIS OF PRESENTATION The accompanying unaudited condensed consolidated financial statements include the accounts of New Concept Energy, Inc. and its majority-owned subsidiary (collectively, “NCE” or the “Company”). All significant intercompany transactions and accounts have been eliminated. 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. The Company is evaluating business opportunities to provide both additional income and cash flow. 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, 2023. Operating results for the three month period ended June 30, 2024 are not necessarily indicative of the results that may be expected for any subsequent quarter or for the fiscal year ending December 31, 2024.

NATURE OF OPERATIONS

NATURE OF OPERATIONS	6 Months Ended
	Jun. 30, 2024
Organization, Consolidation and Presentation of Financial Statements [Abstract]
NATURE OF OPERATIONS	NOTE B: NATURE OF 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 approximately 16,000 square feet is leased at a rate of $ 101,000 per annum In August 2020, the Company sold its oil and gas operations to a third party. On January 1, 2022, the Company entered into a Consulting Management Agreement with respect to such oil and gas operations whereby the Company would provide management, supervisory and administrative services for a fee of 10% of the gross revenue of such oil and gas operations. The agreement is effective January 1, 2022 and may be terminated by either party upon sixty days’ notice.

SUMMARY OF SIGNIFICANT ACCOUNTI

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	6 Months Ended
	Jun. 30, 2024
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, leases, and 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, 2023. Revenue Recognition The Company recognizes revenues in accordance with Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) Topic 606, Revenue from Contracts with Customers. Under this guidance, the Company recognizes revenue when performance obligations under the terms of a contract with a customer are satisfied by analyzing exchanges with its customers using a five-step approach (1) identify the contract(s) with a customer; (2) identify the performance obligation in the 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 single performance obligation which are not separately identifiable from other promises in the contracts and is, therefore, not distinct. The Company’s performance obligation is satisfied upon the transfer of risk of loss to the customer. Revenue related to rental income from property leases are recognized monthly and consulting management fees are recognized quarterly as they are earned over a period of time. Income Taxes The Company accounts for income taxes in accordance with Accounting Standards Codification, (“ASC”) No. 740, “Accounting for Income 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’s assets and liabilities result in deferred tax assets, ASC 740requires 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 uncertainty regarding the Company’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.

RELATED PARTIES

RELATED PARTIES	6 Months Ended
	Jun. 30, 2024
Related Party Transactions [Abstract]
RELATED PARTIES	NOTE D – RELATED PARTIES 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 Opportunity Realty Investors, Inc. (“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 Opportunity Realty Investors, Inc. (“IOR”) until he resigned December 16, 2021. Realty Advisors, Inc., (“RAI”) is a privately owned investment company and by virtue of its stock ownership, the controlling shareholder for ARI, which in 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. Beginning in 2011 Pillar Income Asset Management (“Pillar”) became the contractual advisor to the three publicly traded entities. Pillar is a wholly owned subsidiary of RAI and Mr. Bertcher serves as a director of Pillar. In addition to the relationship with Mr. Bertcher, the Company conducts business with Pillar whereby Pillar provides the Company with services including processing payroll, acquiring insurance, Information Technology, Cybersecurity and other administrative 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. The Company reimburses Pillar for the direct cost for such services.

CONCENTRATIONS

CONCENTRATIONS	6 Months Ended
	Jun. 30, 2024
Risks and Uncertainties [Abstract]
CONCENTRATIONS	NOTE E: CONCENTRATIONS The Company maintains its cash balances at financial institutions that participate in the Federal Deposit Insurance Corporation’s Transaction Account Guarantee Program which insures depositors up to $ 250,000

NOTE RECEIVABLE

NOTE RECEIVABLE	6 Months Ended
	Jun. 30, 2024
Receivables [Abstract]
NOTE RECEIVABLE	NOTE F: NOTE RECEIVABLE The Company has a Note Receivable from American Realty Investors, Inc. (a related party) in the amount of $ 3,542,000 5.33% September 30, 2027

INCOME TAXES

INCOME TAXES	6 Months Ended
	Jun. 30, 2024
Income Tax Disclosure [Abstract]
INCOME TAXES	NOTE G – INCOME TAXES We account for income taxes under the asset and liability method, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements. Under this method, deferred tax assets and liabilities are determined on the basis of the differences between the financial statement and tax basis of liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. The effect of the change 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 their net recorded amount, we would make an adjustment to the deferred tax asset valuation allowance, which would reduce the provision for income taxes. At June 30, 2024,and December 31,2023 the Company had net operating loss carry forwards of approximately $ 7.5 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

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS	6 Months Ended
	Jun. 30, 2024
Subsequent Events [Abstract]
SUBSEQUENT EVENTS	NOTE H: SUBSEQUENT EVENTS The Company has evaluated subsequent events through August 13, 2024, the date the financial statements were available to be issued and determined that there are none to be reported.

SUMMARY OF SIGNIFICANT ACCOUN_2

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	6 Months Ended
	Jun. 30, 2024
Accounting Policies [Abstract]
Revenue Recognition	Revenue Recognition The Company recognizes revenues in accordance with Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) Topic 606, Revenue from Contracts with Customers. Under this guidance, the Company recognizes revenue when performance obligations under the terms of a contract with a customer are satisfied by analyzing exchanges with its customers using a five-step approach (1) identify the contract(s) with a customer; (2) identify the performance obligation in the 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 single performance obligation which are not separately identifiable from other promises in the contracts and is, therefore, not distinct. The Company’s performance obligation is satisfied upon the transfer of risk of loss to the customer. Revenue related to rental income from property leases are recognized monthly and consulting management fees are recognized quarterly as they are earned over a period of time.
Income Taxes	Income Taxes The Company accounts for income taxes in accordance with Accounting Standards Codification, (“ASC”) No. 740, “Accounting for Income 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’s assets and liabilities result in deferred tax assets, ASC 740requires 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 uncertainty regarding the Company’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.

NATURE OF OPERATIONS (Details N

NATURE OF OPERATIONS (Details Narrative)	6 Months Ended
	Jun. 30, 2024
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Lease revenue per annum	101,000 per annum

CONCENTRATIONS (Details Narrati

CONCENTRATIONS (Details Narrative)	Jun. 30, 2024 USD ($)
Risks and Uncertainties [Abstract]
Federal deposit insurance corporation	$ 250,000

NOTE RECEIVABLE (Details Narrat

NOTE RECEIVABLE (Details Narrative) - American Realty Investors [Member] $ in Thousands	6 Months Ended
	Jun. 30, 2024 USD ($)
Accounts, Notes, Loans and Financing Receivable [Line Items]
Note receivable	$ 3,542,000
Interest rate	5.33%
Due date	Sep. 30, 2027

INCOME TAXES (Details Narrative

INCOME TAXES (Details Narrative) - USD ($)	Jun. 30, 2024	Dec. 31, 2023
Income Tax Disclosure [Abstract]
Net operating loss carry forwards	$ 7,500,000	$ 7,500,000