Document And Entity Information
Document And Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Mar. 29, 2016 | Jun. 30, 2015 | |
Entity Registrant Name | CKX LANDS, INC. | ||
Entity Central Index Key | 352,955 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Smaller Reporting Company | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Common Stock, Shares Outstanding (in shares) | 1,942,495 | ||
Entity Public Float | $ 19,773,862 | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2015 | ||
Document Fiscal Year Focus | 2,015 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false |
Balance Sheets
Balance Sheets - USD ($) | Dec. 31, 2015 | Dec. 31, 2014 |
Short Term [Member] | ||
Current Assets: | ||
Certificates of deposit | $ 3,324,000 | $ 1,680,000 |
Non-current Assets | ||
Certificates of deposit | 3,324,000 | 1,680,000 |
Long Term [Member] | ||
Current Assets: | ||
Certificates of deposit | 1,200,000 | 240,000 |
Non-current Assets | ||
Certificates of deposit | 1,200,000 | 240,000 |
Timber Properties [Member] | ||
Non-current Assets | ||
Timber | $ 1,546,088 | $ 1,527,425 |
Building and Equipment [Member] | ||
Non-current Assets | ||
Timber | ||
Cash and cash equivalents | $ 2,767,424 | $ 5,225,594 |
Accounts receivable | 64,752 | 146,413 |
Prepaid expense and other assets | 44,826 | 50,085 |
Total current assets | 6,201,002 | 7,102,092 |
Land | $ 5,209,846 | 4,957,135 |
Timber | 6,241 | |
Total assets | $ 14,156,936 | 13,826,652 |
Current Liabilities: | ||
Trade payables and accrued expenses | 54,402 | 61,237 |
Total current liabilities | 54,402 | 61,237 |
Non-current Liabilities: | ||
Deferred income tax payable | 292,767 | 224,426 |
Total liabilities | 347,169 | 285,663 |
Stockholders’ Equity: | ||
Common stock, no par value: 3,000,000 shares authorized; 1,942,495 and 2,100,000 shares issued, respectively | 59,335 | 72,256 |
Retained earnings | $ 13,750,432 | 13,844,249 |
Less cost of treasury stock (0 and 157,505 shares, respectively) | (375,516) | |
Total stockholders’ equity | $ 13,809,767 | 13,540,989 |
Total liabilities and stockholders’ equity | $ 14,156,936 | $ 13,826,652 |
Balance Sheets (Parentheticals)
Balance Sheets (Parentheticals) - USD ($) | Dec. 31, 2015 | Dec. 31, 2014 |
Building and Equipment [Member] | ||
Accumulated depreciation | $ 84,156 | $ 90,432 |
Common stock, par value (in dollars per share) | $ 0 | $ 0 |
Common stock, shares authorized (in shares) | 3,000,000 | 3,000,000 |
Common stock, shares issued (in shares) | 1,942,495 | 2,100,000 |
Treasury stock, shares (in shares) | 0 | 157,505 |
Statements of Income
Statements of Income - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Revenues: | ||
Oil and gas | $ 786,204 | $ 1,483,780 |
Timber | 52,028 | 698,773 |
Surface | 223,869 | 436,188 |
Total revenues | 1,062,101 | 2,618,741 |
Oil and gas | 70,240 | 97,702 |
Timber | 8,026 | 84,183 |
Surface | 4,330 | 1,325 |
General and administrative | 501,159 | 526,781 |
Gain on sale of land | (172,352) | (350) |
Total cost, expenses and (gains) | 411,403 | 709,641 |
Income from operations | 650,698 | 1,909,100 |
Other Income (Expense): | ||
Interest income | 23,108 | 16,907 |
Other income | 23,108 | 16,907 |
Income before income taxes | 673,806 | 1,926,007 |
Federal and State Income Taxes: | ||
Current | 142,437 | 598,524 |
Deferred | 68,341 | 42,609 |
Total federal and state income taxes | 210,778 | 641,133 |
Net income | $ 463,028 | $ 1,284,874 |
Per Common Stock , basic and diluted | ||
Net income (in dollars per share) | $ 0.24 | $ 0.66 |
Dividends (in dollars per share) | $ 0.10 | $ 0.28 |
Weighted Average Common Shares Outstanding, basic and diluted (in shares) | 1,942,495 | 1,942,495 |
Statements of Changes in Stockh
Statements of Changes in Stockholders' Equity - USD ($) | Retained Earnings [Member] | Common Stock [Member] | Treasury Stock [Member] | Total |
Balance at Dec. 31, 2013 | $ 13,091,860 | $ 72,256 | $ (375,516) | $ 12,788,600 |
Net income | 1,284,874 | 1,284,874 | ||
Dividends paid | (543,899) | (543,899) | ||
Dividends reversion | 11,414 | 11,414 | ||
Balance at Dec. 31, 2014 | 13,844,249 | 72,256 | (375,516) | 13,540,989 |
Net income | 463,028 | 463,028 | ||
Dividends paid | (194,250) | $ (194,250) | ||
Dividends reversion | ||||
Balance at Dec. 31, 2015 | 13,750,432 | 59,335 | $ 13,809,767 | |
Reclassification of treasury stock under the LBCA | $ (362,595) | $ (12,921) | $ 375,516 | $ 375,516 |
Statements of Cash Flows
Statements of Cash Flows - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Cash Flows from Operating Activities: | ||
Net income | $ 463,028 | $ 1,284,874 |
Adjustments to reconcile net income to net cash used in operating activities: | ||
Gain on sale of land | (172,352) | (350) |
Timber depletion | $ 2,872 | 60,941 |
Depreciation | 6,241 | |
Deferred income tax expense | $ 68,341 | 42,609 |
Change in operating assets and liabilities: | ||
Decrease in current assets | 86,920 | 60,998 |
Decrease in current liabilities | (6,835) | (14,951) |
Net cash provided from operating activities | 441,974 | 1,440,361 |
Cash Flows from Investing Activities: | ||
Maturity proceeds | 3,084,000 | 3,131,000 |
Purchase | (5,688,000) | (2,630,000) |
Purchases | (21,535) | (286,727) |
Proceeds | 185,623 | 350 |
Purchases and improvements | (265,982) | (425,956) |
Net cash provided used in investing activities | (2,705,894) | (211,333) |
Cash Flows from Financing Activities: | ||
Dividends paid | $ (194,250) | (543,899) |
Dividend reversions | 11,414 | |
Net cash used in financing activities | $ (194,250) | (532,485) |
Net increase (decrease) in cash and cash equivalents | (2,458,170) | 696,543 |
Cash and Cash Equivalents: | ||
Beginning | 5,225,594 | 4,529,051 |
Ending | $ 2,767,424 | $ 5,225,594 |
Supplemental Disclosures of Cash Flow Information | ||
Interest | ||
Income taxes | $ 134,576 | $ 612,000 |
Noncash investing and financing activities: | ||
Reclassification of treasury stock under the LBCA. | $ 375,516 |
Note 1 - Nature of Business and
Note 1 - Nature of Business and Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2015 | |
Notes to Financial Statements | |
Organization, Consolidation and Presentation of Financial Statements Disclosure and Significant Accounting Policies [Text Block] | Note 1. Nature of Business and Significant Accounting Policies Nature of business: The Company was incorporated in the State of Louisiana on June 27, 1930. The Company’s business is the ownership and management of land. The primary activities consist of leasing its properties for minerals (oil and gas), raising and harvesting timber, and surface use (agriculture, right of ways, hunting). Significant accounting policies: Pervasiveness of estimates: The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Cash equivalents: Cash equivalents are highly liquid debt instruments with original maturities of three months or less when purchased. Certificate of deposits: Certificates of deposit have maturities greater than three months when purchased, in amounts not greater than $250,000. All certificates of deposit are held until maturity and recorded at cost which approximates fair value. Certificates of deposit mature through 2017. Property and equipment: Property and equipment is stated at cost. Major additions are capitalized. Maintenance and repairs are charged to income as incurred. Depreciation is computed on the straight-line and accelerated methods over the estimated useful lives of the assets. Timber: Reforestation costs and other costs associated with the planting and growth of timber, such as site preparation, purchases of seedlings, planting, fertilization, and herbicide application, are capitalized. Timber carrying costs such as insect, wildlife and wildfire control and forest management services are expensed as incurred. Costs attributable to timber harvested or depleted are charged against revenue as trees are harvested. Depletion rates are determined based on the relationship between the carrying value of the timber and the total timber volume estimated to be harvested over the harvest cycle. Upon the clear-cut harvest of a timber tract, the net timber asset value is expensed. Revenue from timber is recognized upon either the thinning or clear-cut harvesting of our timber and is recorded at such time of such activity. The Company does not enter into timber deed contracts. Impairment of long-lived assets: Long-lived assets, such as land, timber and buildings and equipment, are reviewed for impairment whenever events or changes in circumstances indicate the carrying amount of an asset may not be recoverable. If events or circumstances arise that require a long-lived asset to be tested for potential impairment, the Company first compares undiscounted cash flows expected to be generated by the asset to its carrying value. If the carrying amount of the long-lived asset is not recoverable on an undiscounted cash flow basis, an impairment charge is recognized to the extent that the carrying value exceeds the fair value. Fair value maybe determined through various valuation techniques including quoted market prices, third-party independent appraisals and discounted cash flow models. The Company recorded no impairment charges during 2015 and 2014. Oil and gas: Oil and gas revenue is recorded when the Company is notified by the well’s operator as to the Company’s share of the revenue proceeds together with the withheld severance taxes or net revenue. In addition, the Company does accrue estimated oil and gas net revenue earned but not received from these well operators as of the balance sheet date and records this accrued amount as accounts receivable. The accounts receivable balance consists solely of these accrued net revenues. The Company does not have the ability to know the actual production volume or the oil and gas price paid for the production until the actual payment is received from the well’s operator. In estimating the accrued net receivable and its collectability, the Company reviews the prior months of activity by well, available subsequent net revenue receipts by well and any other pertinent information that is available to the Company to estimate the net revenue at the balance sheet date. As of December 31, 2015 and 2014, no allowance for doubtful accounts was recorded. Surface: Surface revenue is earned through annual leases for agricultural and hunting activities and the Company records revenues from these activities at the time of a fully executed lease agreement and receipt of annual lease payment. Surface revenues from these sources are recurring on an annual basis. Surface revenue is also earned through right of way and related temporary work space leases, both of which are not unusual in occurrence and are not recurring sources of revenue. Generally, a right of way lease relates to either a utility or pipeline right of way that is a permanent servitude or for fixed periods of time greater than thirty years. The Company retains ownership of the surface or land and is limited to the use of the surface. Revenue is recorded at the time of the agreement’s execution date. For income tax purposes, these types of agreements are treated as sales of business assets. Other sources of surface revenue can be commercial activities leases and surface mineral sales, such as dirt. At this time, the Company does not have any active agreements related to these “other” sources Net Income and Dividends Paid per common stock: Net income and dividends paid per common stock are based on the weighted average number of common stock shares outstanding during the period. Dividends: Pursuant to a dividend reversion clause in the Company’s Articles of Incorporation, dividends not claimed within one year after the dividend became payable will expire and revert in full ownership to the Company and the Company’s obligation to pay such dividend will cease. Any dividend reversions are recorded in equity upon receipt. Income taxes: Deferred income tax assets and liabilities are determined using the liability (or balance sheet) method. Under this method, the net deferred tax asset or liability is determined based on the tax effects of the temporary differences between the book and tax bases of the various balance sheet assets and liabilities and gives current recognition to changes in tax rates and laws. In accordance with generally accepted accounting principles, the Company has analyzed its filing positions in federal and state income tax returns for the tax returns that remain subject to examination, generally 3 years after filing. The Company believes that all filing positions are highly certain and that all income tax filing positions and deductions would be sustained upon a taxing jurisdiction’s audit. Therefore, no reserve for uncertain tax positions is required. No interest or penalties have been levied against the Company and none are anticipated. Treasury Stock - Louisiana Business Corporation Act: Effective January 1, 2015, companies incorporated under Louisiana law became subject to the Louisiana Business Corporation Act (which replaced the Louisiana Business Corporation Law). Provisions of the Louisiana Business Corporation Act (“LBCA”) eliminate the concept of treasury stock and provide that shares reacquired by a company are to be treated as authorized but unissued shares. As a result of this change in law, shares previously classified as treasury stock are presented as a reduction to issued shares of common stock, reducing the stated value of common stock and the excess is charged to retained earnings. Recent Accounting Pronouncements: In May 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update 2014-09, “Revenue from Contracts with Customers”. This update supersedes most of the existing revenue recognition requirements in GAAP and requires (i) an entity to recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled to in exchange for those goods or services and (ii) requires expanded disclosures regarding the nature, amount, timing, and certainty of revenue and cash flows from contracts with customers. The standard will be effective for annual and interim reporting periods beginning after December 15, 2017, with early application not permitted. The standard allows for either full retrospective adoption, meaning the standard is applied to all periods presented in the financial statements, or modified retrospective adoption, meaning the standard is applied only to the most current period presented. The Company does not believe this change will have an impact on its financial position, results of operations and liquidity. In November 2015, FASB issued changes to the balance sheet classification of deferred taxes, which the Company immediately adopted. These changes simplify the presentation of deferred income taxes by requiring all deferred income tax assets and liabilities to be classified as noncurrent in a classified balance sheet. The current requirement that deferred tax assets and liabilities of a tax-paying component of an entity be offset and presented as a single amount is not affected by these changes. As such, all deferred income tax assets and liabilities were classified in the Deferred income on the December 31, 2015 Balance Sheet. Additionally, no change to the December 31, 2014 Balance Sheet for these changes was necessary. |
Note 2 - Oil and Gas Leases
Note 2 - Oil and Gas Leases | 12 Months Ended |
Dec. 31, 2015 | |
Notes to Financial Statements | |
Operating Leases of Lessor Disclosure [Text Block] | Note 2. Oil and Gas Leases Results of oil and gas leasing activities for the year ending December 31, 2015 and 2014 are as follows: 2015 20 14 Gross revenues Royalty interests $ 772,212 $ 1,366,281 Lease Fees 13,992 117,499 786,204 1,483,780 Production costs 70,240 97,702 Results before income tax expense 715,964 1,386,078 Estimated income tax expense (40%) 286,386 554,431 Results of operations from producing activities excluding corporate overhead $ 429,578 $ 831,647 There were no major costs, with the exception of severance taxes, incurred in connection the Company's oil and gas leasing activities, which are located entirely within the United States, during the years ended December 31, 2015 and 2014. Reserve quantities (unaudited): Reserve information relating to estimated quantities of the Company's interest in proved reserves of natural gas and crude including condensate and natural gas liquids is not available. Such reserves are located entirely within the United States. A schedule indicating such reserve quantities is, therefore, not presented. All oil and gas royalties come from Company owned properties that were developed and produced by producers, unrelated to Company, under oil and gas mineral lease agreements. Company’s royalty and working interests share of oil and gas, exclusive of plant products, produced from leased properties: 2015 2014 Net gas produced (MCF) 50,304 46,457 Net oil produced (Bbl) 11,145 10,593 |
Note 3 - Income Taxes
Note 3 - Income Taxes | 12 Months Ended |
Dec. 31, 2015 | |
Notes to Financial Statements | |
Income Tax Disclosure [Text Block] | Note 3. Income Taxes The Company files federal and state income tax returns on a calendar year basis. The net deferred tax liability in the accompanying balance sheets includes the following components at December 31, 2015 and 2014: 2015 2014 Current Non-Current Current Non-Current Deferred tax assets $ -- $ -- $ -- $ -- Deferred tax liabilities -- (292,767 ) -- (224,426 ) $ -- $ (292,767 ) $ -- $ (224,426 ) Reconciliations between the United States Federal statutory income tax provision, using the statutory rate of 34%, and the Company’s provision for income taxes at December 31, 2015 and 2014 are as follows: 20 15 20 14 Income tax on income before extraordinary item: Tax at statutory rates $ 229,094 $ 654,842 Tax effect of the following: Statutory depletion (39,383 ) (69,680 ) Section 1033 deferred gain (58,090 ) (36,217 ) State income tax 10,481 49,519 Other 335 60 Income tax on income $ 142,437 $ 598,524 Deferred income taxes result from timing differences in the recognition of revenue and expenses for tax and financial statement purposes. The effect of these timing differences at December 31, 2015 and 2014 is as follows: 2015 2014 Casualty loss $ (121,239 ) $ (121,239 ) Deferred gain (171,528 ) (103,187 ) $ (292,767 ) $ (224,426 ) |
Note 4 - 1033 Exchange
Note 4 - 1033 Exchange | 12 Months Ended |
Dec. 31, 2015 | |
Notes to Financial Statements | |
Real Estate Disclosure [Text Block] | Note 4. 1031 and 1033 Tax Exchanges: During the third quarter of 2015, the Company purchased approximately 200 acres of land. The purchase included fifty percent of the mineral rights and no merchantable timber value was recorded. The 1031 exchange proceeds of $187,500, discussed below, were applied to this transaction. During the second quarter of 2015, the Company sold its 1/6 th During the third quarter of 2014, the Company sold a right of way to a utility company under threat of expropriation for $106,521 and the gain was $106,521. This transaction was structured as a “deferred exchange” pursuant to Paragraph 1033 of the Internal Revenue Code (1033 Exchange) for income tax purposes and as such the gain of $106,521 was deferred for income tax purposes. During September, 2014, the Company purchased 180 acres of timberland located in Jefferson Davis Parish, Louisiana for $279,828 of which $63,000 was the value of timber on the land. The land valued at $216,828 was used as replacement property for the 1033 Exchange deferred gain above. The Company recognized a deferred income tax of $42,609 on this transaction |
Note 5 - Company Operations
Note 5 - Company Operations | 12 Months Ended |
Dec. 31, 2015 | |
Notes to Financial Statements | |
Segment Reporting Disclosure [Text Block] | Note 5. Company Operations The Company’s operations are classified into three principal operating segments that are all located in the United States: oil and gas, surface and timber. The Company’s reportable business segments are strategic business units that offer income from different products. They are managed separately due to the unique aspects of each area. Following is a summary of segmented operations information for 2015 and 2014: 2015 20 14 Revenues Oil and Gas $ 786,204 $ 1, 483,780 Timber 52,028 698,773 Surface 223,869 436,188 Total 1,062,101 2, 618,741 Cost and Expenses Oil and Gas 70,240 97,702 Timber 8,026 84,183 Surface 4,330 1,325 Total 82,596 183,210 Income from Operations Oil and Gas 715,964 1, 386,078 Timber 44,002 614,590 Surface 219,539 434,863 Total 979,505 2,435,531 Other Income (Expense) before Income Taxes (305,699 ) (509,524 ) Income before Income Taxes 673,806 1,926,007 Identifiable Assets, net of accumulated depreciation and depletion Oil and Gas -- -- Timber 1,546,088 1,527,425 Surface -- -- General Corporate Assets 12,610,848 12,299,227 Total 14,156,936 13,826,652 Capital Expenditures Oil and Gas -- -- Timber 21,535 286,727 Surface -- -- General Corporate Assets 265,982 425,956 Total 287,517 712,683 Depreciation and Depletion Oil and Gas -- -- Timber 2,872 60,941 Surface -- -- General Corporate Assets -- 6,241 Total $ 2,872 $ 67,182 There are no intersegment sales reported in the accompanying income statements. The accounting policies of the segments are the same as those described in the summary of significant accounting policies. The Company evaluates performance based on income or loss from operations before income taxes excluding nonrecurring gains and losses on securities held available-for-sale. Income before income tax represents net revenues less costs and expenses less other income and expenses of a general corporate nature. Identifiable assets by segment are those assets used solely in the Company's operations within that segment. Revenue from customers representing 5% or more of total revenue was: Count 2015 2014 1 $167,000 680,000 2 115,000 624,000 3 113,000 173,000 4 94,000 173,000 5 82,000 160,000 6 76,000 138,000 7 64,000 -- 8 57,000 116,000 |
Note 6 - Line of Credit
Note 6 - Line of Credit | 12 Months Ended |
Dec. 31, 2015 | |
Notes to Financial Statements | |
Debt Disclosure [Text Block] | Note 6. Line of Credit The Company has available an unsecured line of credit in the amount of $5,000,000. The balance on this line of credit was $-0- at December 31, 2015 and 2014. The line of credit matures on May 15, 2016 and borrowings under the line will bear interest at 2.75% plus the ICE LIBOR rate per annum. |
Note 7 - Supplementary Income S
Note 7 - Supplementary Income Statement Information | 12 Months Ended |
Dec. 31, 2015 | |
Notes to Financial Statements | |
Supplemental Balance Sheet Disclosures [Text Block] | Note 7. Supplementary Income Statement Information Taxes, other than income taxes, of $159,464 and $186,161, were charged to expense during 2015 and 2014, respectively. |
Note 8 - Contingencies
Note 8 - Contingencies | 12 Months Ended |
Dec. 31, 2015 | |
Notes to Financial Statements | |
Commitments and Contingencies Disclosure [Text Block] | Note 8. Contingencies: There are no material contingencies known to Management. The Company does not participate in off balance sheet arrangements. |
Note 9 - Concentration of Credi
Note 9 - Concentration of Credit Risk | 12 Months Ended |
Dec. 31, 2015 | |
Notes to Financial Statements | |
Concentration Risk Disclosure [Text Block] | Note 9. Concentration of Credit Risk The Company maintains its cash balances in two financial institutions. The amount on deposit in the financial institution is insured by the Federal Deposit Insurance Corporation up to $250,000. |
Note 10 - Related Party Transac
Note 10 - Related Party Transactions | 12 Months Ended |
Dec. 31, 2015 | |
Notes to Financial Statements | |
Related Party Transactions Disclosure [Text Block] | Note 10. Related Party Transactions Office rent of $4,800 and $4,800, was paid to a company owned by the President in 2015 and 2014, respectively. During 2015 and 2014, $792 and $4,517, respectively, was paid to the President’s spouse’s law firm. |
Note 11 - Disclosures about Fai
Note 11 - Disclosures about Fair Value of Financial Instruments | 12 Months Ended |
Dec. 31, 2015 | |
Notes to Financial Statements | |
Fair Value Disclosures [Text Block] | Note 11. Disclosures about Fair Value of Financial Instruments The following methods and assumptions were used to estimate the fair value of each class of financial instruments for which it was practical to estimate that value: Class Methods and/or Assumptions Cash and cash equivalents: Carrying value approximates fair value due to its readily convertible characteristic. Certificate of Deposit: Held until maturity and recorded at amortized cost which approximates fair value. The estimated fair value of the Company's financial instruments at December 31, 2015 and 2014 are as follows. (Presented in thousands) 2015 2014 Level Carrying Fair Value Carrying Fair Value Financial Assets: Cash and cash equivalents 1 $ 2,767 $ 2,767 $ 5,226 $ 5,226 Certificate of deposit – short term 1 3,324 3,324 1,680 1,680 Certificate of deposit – long term 1 1,200 1,200 240 240 $ 7,291 $ 7,291 $ 7,146 $ 7,146 |
Significant Accounting Policies
Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Use of Estimates, Policy [Policy Text Block] | Pervasiveness of estimates: The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. |
Cash and Cash Equivalents, Policy [Policy Text Block] | Cash equivalents: Cash equivalents are highly liquid debt instruments with original maturities of three months or less when purchased. |
Certificates of Deposit [Policy Text Block] | Certificate of deposits: Certificates of deposit have maturities greater than three months when purchased, in amounts not greater than $250,000. All certificates of deposit are held until maturity and recorded at cost which approximates fair value. Certificates of deposit mature through 2017. |
Property, Plant and Equipment, Policy [Policy Text Block] | Property and equipment: Property and equipment is stated at cost. Major additions are capitalized. Maintenance and repairs are charged to income as incurred. Depreciation is computed on the straight-line and accelerated methods over the estimated useful lives of the assets. |
Timber Assets Policy [Policy Text Block] | Timber: Reforestation costs and other costs associated with the planting and growth of timber, such as site preparation, purchases of seedlings, planting, fertilization, and herbicide application, are capitalized. Timber carrying costs such as insect, wildlife and wildfire control and forest management services are expensed as incurred. Costs attributable to timber harvested or depleted are charged against revenue as trees are harvested. Depletion rates are determined based on the relationship between the carrying value of the timber and the total timber volume estimated to be harvested over the harvest cycle. Upon the clear-cut harvest of a timber tract, the net timber asset value is expensed. Revenue from timber is recognized upon either the thinning or clear-cut harvesting of our timber and is recorded at such time of such activity. The Company does not enter into timber deed contracts. |
Property, Plant and Equipment, Impairment [Policy Text Block] | Impairment of long-lived assets: Long-lived assets, such as land, timber and buildings and equipment, are reviewed for impairment whenever events or changes in circumstances indicate the carrying amount of an asset may not be recoverable. If events or circumstances arise that require a long-lived asset to be tested for potential impairment, the Company first compares undiscounted cash flows expected to be generated by the asset to its carrying value. If the carrying amount of the long-lived asset is not recoverable on an undiscounted cash flow basis, an impairment charge is recognized to the extent that the carrying value exceeds the fair value. Fair value maybe determined through various valuation techniques including quoted market prices, third-party independent appraisals and discounted cash flow models. The Company recorded no impairment charges during 2015 and 2014. |
Revenue Recognition, Policy [Policy Text Block] | Oil and gas: Oil and gas revenue is recorded when the Company is notified by the well’s operator as to the Company’s share of the revenue proceeds together with the withheld severance taxes or net revenue. In addition, the Company does accrue estimated oil and gas net revenue earned but not received from these well operators as of the balance sheet date and records this accrued amount as accounts receivable. The accounts receivable balance consists solely of these accrued net revenues. The Company does not have the ability to know the actual production volume or the oil and gas price paid for the production until the actual payment is received from the well’s operator. In estimating the accrued net receivable and its collectability, the Company reviews the prior months of activity by well, available subsequent net revenue receipts by well and any other pertinent information that is available to the Company to estimate the net revenue at the balance sheet date. As of December 31, 2015 and 2014, no allowance for doubtful accounts was recorded. |
Revenue Recognition Leases [Policy Text Block] | Surface: Surface revenue is earned through annual leases for agricultural and hunting activities and the Company records revenues from these activities at the time of a fully executed lease agreement and receipt of annual lease payment. Surface revenues from these sources are recurring on an annual basis. Surface revenue is also earned through right of way and related temporary work space leases, both of which are not unusual in occurrence and are not recurring sources of revenue. Generally, a right of way lease relates to either a utility or pipeline right of way that is a permanent servitude or for fixed periods of time greater than thirty years. The Company retains ownership of the surface or land and is limited to the use of the surface. Revenue is recorded at the time of the agreement’s execution date. For income tax purposes, these types of agreements are treated as sales of business assets. Other sources of surface revenue can be commercial activities leases and surface mineral sales, such as dirt. At this time, the Company does not have any active agreements related to these “other” sources |
Earnings Per Share, Policy [Policy Text Block] | Net Income and Dividends Paid per common stock: Net income and dividends paid per common stock are based on the weighted average number of common stock shares outstanding during the period. |
Revenue Recognition, Dividends [Policy Text Block] | Dividends: Pursuant to a dividend reversion clause in the Company’s Articles of Incorporation, dividends not claimed within one year after the dividend became payable will expire and revert in full ownership to the Company and the Company’s obligation to pay such dividend will cease. Any dividend reversions are recorded in equity upon receipt. |
Income Tax, Policy [Policy Text Block] | Income taxes: Deferred income tax assets and liabilities are determined using the liability (or balance sheet) method. Under this method, the net deferred tax asset or liability is determined based on the tax effects of the temporary differences between the book and tax bases of the various balance sheet assets and liabilities and gives current recognition to changes in tax rates and laws. In accordance with generally accepted accounting principles, the Company has analyzed its filing positions in federal and state income tax returns for the tax returns that remain subject to examination, generally 3 years after filing. The Company believes that all filing positions are highly certain and that all income tax filing positions and deductions would be sustained upon a taxing jurisdiction’s audit. Therefore, no reserve for uncertain tax positions is required. No interest or penalties have been levied against the Company and none are anticipated. |
Treasury Stock LBCA, Policy [Policy Text Block] | Treasury Stock - Louisiana Business Corporation Act: Effective January 1, 2015, companies incorporated under Louisiana law became subject to the Louisiana Business Corporation Act (which replaced the Louisiana Business Corporation Law). Provisions of the Louisiana Business Corporation Act (“LBCA”) eliminate the concept of treasury stock and provide that shares reacquired by a company are to be treated as authorized but unissued shares. As a result of this change in law, shares previously classified as treasury stock are presented as a reduction to issued shares of common stock, reducing the stated value of common stock and the excess is charged to retained earnings. |
New Accounting Pronouncements, Policy [Policy Text Block] | Recent Accounting Pronouncements: In May 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update 2014-09, “Revenue from Contracts with Customers”. This update supersedes most of the existing revenue recognition requirements in GAAP and requires (i) an entity to recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled to in exchange for those goods or services and (ii) requires expanded disclosures regarding the nature, amount, timing, and certainty of revenue and cash flows from contracts with customers. The standard will be effective for annual and interim reporting periods beginning after December 15, 2017, with early application not permitted. The standard allows for either full retrospective adoption, meaning the standard is applied to all periods presented in the financial statements, or modified retrospective adoption, meaning the standard is applied only to the most current period presented. The Company does not believe this change will have an impact on its financial position, results of operations and liquidity. In November 2015, FASB issued changes to the balance sheet classification of deferred taxes, which the Company immediately adopted. These changes simplify the presentation of deferred income taxes by requiring all deferred income tax assets and liabilities to be classified as noncurrent in a classified balance sheet. The current requirement that deferred tax assets and liabilities of a tax-paying component of an entity be offset and presented as a single amount is not affected by these changes. As such, all deferred income tax assets and liabilities were classified in the Deferred income on the December 31, 2015 Balance Sheet. Additionally, no change to the December 31, 2014 Balance Sheet for these changes was necessary. |
Note 2 - Oil and Gas Leases (Ta
Note 2 - Oil and Gas Leases (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Notes Tables | |
Results of Operations for Oil and Gas Producing Activities Disclosure [Table Text Block] | 2015 20 14 Gross revenues Royalty interests $ 772,212 $ 1,366,281 Lease Fees 13,992 117,499 786,204 1,483,780 Production costs 70,240 97,702 Results before income tax expense 715,964 1,386,078 Estimated income tax expense (40%) 286,386 554,431 Results of operations from producing activities excluding corporate overhead $ 429,578 $ 831,647 |
Oil and Gas Net Production, Average Sales Price and Average Production Costs Disclosure [Table Text Block] | 2015 2014 Net gas produced (MCF) 50,304 46,457 Net oil produced (Bbl) 11,145 10,593 |
Note 3 - Income Taxes (Tables)
Note 3 - Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Notes Tables | |
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | 2015 2014 Current Non-Current Current Non-Current Deferred tax assets $ -- $ -- $ -- $ -- Deferred tax liabilities -- (292,767 ) -- (224,426 ) $ -- $ (292,767 ) $ -- $ (224,426 ) |
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | 20 15 20 14 Income tax on income before extraordinary item: Tax at statutory rates $ 229,094 $ 654,842 Tax effect of the following: Statutory depletion (39,383 ) (69,680 ) Section 1033 deferred gain (58,090 ) (36,217 ) State income tax 10,481 49,519 Other 335 60 Income tax on income $ 142,437 $ 598,524 |
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block] | 2015 2014 Casualty loss $ (121,239 ) $ (121,239 ) Deferred gain (171,528 ) (103,187 ) $ (292,767 ) $ (224,426 ) |
Note 5 - Company Operations (Ta
Note 5 - Company Operations (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Notes Tables | |
Schedule of Segment Reporting Information, by Segment [Table Text Block] | 2015 20 14 Revenues Oil and Gas $ 786,204 $ 1, 483,780 Timber 52,028 698,773 Surface 223,869 436,188 Total 1,062,101 2, 618,741 Cost and Expenses Oil and Gas 70,240 97,702 Timber 8,026 84,183 Surface 4,330 1,325 Total 82,596 183,210 Income from Operations Oil and Gas 715,964 1, 386,078 Timber 44,002 614,590 Surface 219,539 434,863 Total 979,505 2,435,531 Other Income (Expense) before Income Taxes (305,699 ) (509,524 ) Income before Income Taxes 673,806 1,926,007 Identifiable Assets, net of accumulated depreciation and depletion Oil and Gas -- -- Timber 1,546,088 1,527,425 Surface -- -- General Corporate Assets 12,610,848 12,299,227 Total 14,156,936 13,826,652 Capital Expenditures Oil and Gas -- -- Timber 21,535 286,727 Surface -- -- General Corporate Assets 265,982 425,956 Total 287,517 712,683 Depreciation and Depletion Oil and Gas -- -- Timber 2,872 60,941 Surface -- -- General Corporate Assets -- 6,241 Total $ 2,872 $ 67,182 |
Schedule of Revenue by Major Customers by Reporting Segments [Table Text Block] | Count 2015 2014 1 $167,000 680,000 2 115,000 624,000 3 113,000 173,000 4 94,000 173,000 5 82,000 160,000 6 76,000 138,000 7 64,000 -- 8 57,000 116,000 |
Note 11 - Disclosures about F22
Note 11 - Disclosures about Fair Value of Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Notes Tables | |
Fair Value, by Balance Sheet Grouping [Table Text Block] | (Presented in thousands) 2015 2014 Level Carrying Fair Value Carrying Fair Value Financial Assets: Cash and cash equivalents 1 $ 2,767 $ 2,767 $ 5,226 $ 5,226 Certificate of deposit – short term 1 3,324 3,324 1,680 1,680 Certificate of deposit – long term 1 1,200 1,200 240 240 $ 7,291 $ 7,291 $ 7,146 $ 7,146 |
Note 1 - Nature of Business a23
Note 1 - Nature of Business and Significant Accounting Policies (Details Textual) - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Impairment of Long-Lived Assets Held-for-use | $ 0 | $ 0 |
Allowance for Doubtful Accounts Receivable, Current | $ 0 | $ 0 |
Period Subject To Examination Federal And State Income Tax Returns | 3 years |
Note 2 - Oil and Gas Leasing Ac
Note 2 - Oil and Gas Leasing Activities (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Gross revenues | ||
Royalty interests | $ 772,212 | $ 1,366,281 |
Lease Fees | 13,992 | 117,499 |
Gross Revenue | 786,204 | 1,483,780 |
Production costs | 70,240 | 97,702 |
Results before income tax expense | 715,964 | 1,386,078 |
Estimated income tax expense (40%) | 286,386 | 554,431 |
Results of operations from producing activities excluding corporate overhead | $ 429,578 | $ 831,647 |
Note 2 - Company's Royalty and
Note 2 - Company's Royalty and Working Interests Share (Details) - Boe | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Natural Gas, Per Thousand Cubic Feet [Member] | ||
Net oil or gas produced | 50,304 | 46,457 |
Crude Oil and NGL [Member] | ||
Net oil or gas produced | 11,145 | 10,593 |
Note 3 - Income Taxes (Details
Note 3 - Income Taxes (Details Textual) | 12 Months Ended |
Dec. 31, 2015 | |
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 34.00% |
Note 3 - Components of Deferred
Note 3 - Components of Deferred Taxes (Details) - USD ($) | Dec. 31, 2015 | Dec. 31, 2014 |
Deferred tax liabilities | $ (292,767) | $ (224,426) |
Deferred tax assets and liabilities, Net | $ (292,767) | $ (224,426) |
Note 3 - Income Tax Reconciliat
Note 3 - Income Tax Reconciliation (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Income tax on income before extraordinary item: | ||
Tax at statutory rates | $ 229,094 | $ 654,842 |
Tax effect of the following: | ||
Statutory depletion | (39,383) | (69,680) |
Section 1033 deferred gain | (58,090) | (36,217) |
State income tax | 10,481 | 49,519 |
Other | 335 | 60 |
Income tax on income | $ 142,437 | $ 598,524 |
Note 3 - Deferred Income Taxes
Note 3 - Deferred Income Taxes (Details) - USD ($) | Dec. 31, 2015 | Dec. 31, 2014 |
Casualty Loss [Member] | ||
Casualty loss | $ (121,239) | $ (121,239) |
Deferred Gain [Member] | ||
Casualty loss | (171,528) | (103,187) |
Casualty loss | $ (292,767) | $ (224,426) |
Note 4 - 1033 Exchange (Details
Note 4 - 1033 Exchange (Details Textual) | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||
Sep. 30, 2014USD ($)a | Sep. 30, 2015USD ($)a | Jun. 30, 2015USD ($)a | Sep. 30, 2014USD ($)a | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | |
Natchitoches Parish [Member] | ||||||
Timber | $ 0 | |||||
Area of Land | a | 200 | |||||
Payments to Acquire Land | $ 187,500 | |||||
Timberland Located in Jefferson Davis Parish, Louisiana [Member] | ||||||
Area of Land | a | 180 | 180 | ||||
One-Sixth Interest in Approximately 155 Acres of Land in Jefferson Davis Parish [Member] | ||||||
Area of Land | a | 155 | |||||
Proceeds from Sale of Land Held-for-use | $ 187,500 | |||||
Gain (Loss) on Disposition of Property Plant Equipment | 172,352 | |||||
Section 1031 Exchange, Gain Deferred for Income Tax Purposes | $ 172,352 | |||||
Real Estate 1033 Exchange [Member] | ||||||
Land | $ 216,828 | $ 216,828 | ||||
Timber | 63,000 | 63,000 | ||||
Proceeds from Sale of Land Held-for-use | $ 185,623 | $ 350 | ||||
Proceeds from Sale of Property Held-for-sale | 106,521 | |||||
Deferred Gain on Sale of Property | 106,521 | 106,521 | ||||
Payments to Acquire Timberlands | $ 279,828 | 21,535 | 286,727 | |||
Land | 5,209,846 | 4,957,135 | ||||
Deferred Income Tax Expense (Benefit) | $ 42,609 | $ 68,341 | $ 42,609 |
Note 5 - Segmented Operations I
Note 5 - Segmented Operations Information (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Oil And Gas [Member] | ||
Revenue by Customer | $ 786,204 | $ 1,483,780 |
Cost and Expenses | 70,240 | 97,702 |
Income from Operations | 715,964 | 1,386,078 |
Timber [Member] | ||
Revenue by Customer | 52,028 | 698,773 |
Cost and Expenses | 8,026 | 84,183 |
Income from Operations | 44,002 | 614,590 |
Identifiable Assets, net of accumulated depreciation and depletion | 1,546,088 | 1,527,425 |
Capital Expenditures | 21,535 | 286,727 |
Depreciation and Depletion | 2,872 | 60,941 |
Surface [Member] | ||
Revenue by Customer | 223,869 | 436,188 |
Cost and Expenses | 4,330 | 1,325 |
Income from Operations | 219,539 | 434,863 |
Corporate Segment [Member] | ||
Identifiable Assets, net of accumulated depreciation and depletion | 12,610,848 | 12,299,227 |
Capital Expenditures | $ 265,982 | 425,956 |
Depreciation and Depletion | 6,241 | |
Operating Segments [Member] | ||
Cost and Expenses | $ 82,596 | 183,210 |
Income from Operations | 979,505 | 2,435,531 |
Other Income (Expense) before Income Taxes | (305,699) | (509,524) |
Revenue by Customer | 1,062,101 | 2,618,741 |
Cost and Expenses | 411,403 | 709,641 |
Income from Operations | 650,698 | 1,909,100 |
Other Income (Expense) before Income Taxes | 23,108 | 16,907 |
Income before Income Taxes | 673,806 | 1,926,007 |
Identifiable Assets, net of accumulated depreciation and depletion | 14,156,936 | 13,826,652 |
Capital Expenditures | 287,517 | 712,683 |
Depreciation and Depletion | $ 2,872 | $ 67,182 |
Note 5 - Customers Representing
Note 5 - Customers Representing 5% or More of Total Revenue (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Major Customers 1 [Member] | ||
Revenue by Customer | $ 167,000 | $ 680,000 |
Major Customers 2 [Member] | ||
Revenue by Customer | 115,000 | 624,000 |
Major Customers 3 [Member] | ||
Revenue by Customer | 113,000 | 173,000 |
Major Customers 4 [Member] | ||
Revenue by Customer | 94,000 | 173,000 |
Major Customers 5 [Member] | ||
Revenue by Customer | 82,000 | 160,000 |
Major Customers 6 [Member] | ||
Revenue by Customer | 76,000 | $ 138,000 |
Major Customers 7 [Member] | ||
Revenue by Customer | 64,000 | |
Major Customers 8 [Member] | ||
Revenue by Customer | 57,000 | $ 116,000 |
Revenue by Customer | $ 1,062,101 | $ 2,618,741 |
Note 6 - Line of Credit (Detail
Note 6 - Line of Credit (Details Textual) - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Long-term Line of Credit | $ 0 | $ 0 |
Line of Credit Facility, Maximum Borrowing Capacity | $ 5,000,000 | |
Line of Credit Facility, Interest Rate During Period | 2.75% |
Note 7 - Supplementary Income34
Note 7 - Supplementary Income Statement Information (Details Textual) - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Taxes, Other | $ 159,464 | $ 186,161 |
Note 8 - Contingencies (Details
Note 8 - Contingencies (Details Textual) | Dec. 31, 2014USD ($) |
Commitments and Contingencies | $ 0 |
Note 9 - Concentration of Cre36
Note 9 - Concentration of Credit Risk (Details Textual) | Dec. 31, 2015USD ($) |
Cash, FDIC Insured Amount | $ 250,000 |
Note 10 - Related Party Trans37
Note 10 - Related Party Transactions (Details Textual) - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
President [Member] | ||
Operating Leases, Rent Expense, Net | $ 4,800 | $ 4,800 |
President's Spouse's Law Firm [Member] | ||
Related Party Transaction, Amounts of Transaction | $ 792 | $ 4,517 |
Note 11 - Estimated Fair Value
Note 11 - Estimated Fair Value of Financial Instruments (Details) - USD ($) | Dec. 31, 2015 | Dec. 31, 2014 |
Fair Value, Inputs, Level 1 [Member] | Short Term [Member] | ||
Certificates of deposit | $ 3,324,000 | $ 1,680,000 |
Certificate of deposit – short term | 3,324,000 | 1,680,000 |
Fair Value, Inputs, Level 1 [Member] | Long Term [Member] | ||
Certificates of deposit | 1,200,000 | 240,000 |
Certificate of deposit – short term | 1,200,000 | 240,000 |
Fair Value, Inputs, Level 1 [Member] | Total Cash and Cash Equivalents [Member] | ||
Cash and cash equivalents | 7,291,000 | 7,146,000 |
Financial Assets | 7,291,000 | 7,146,000 |
Financial Assets | 7,291,000 | 7,146,000 |
Fair Value, Inputs, Level 1 [Member] | ||
Cash and cash equivalents | 2,767,000 | 5,226,000 |
Cash and cash equivalents | 2,767,000 | 5,226,000 |
Financial Assets | 2,767,000 | 5,226,000 |
Short Term [Member] | ||
Certificates of deposit | 3,324,000 | 1,680,000 |
Long Term [Member] | ||
Certificates of deposit | 1,200,000 | 240,000 |
Cash and cash equivalents | 2,767,424 | 5,225,594 |
Financial Assets | $ 2,767,424 | $ 5,225,594 |