U.S. SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q [X] QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Quarterly Period Ended June 30, 2002 [ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to ------ ------ Commission File No. 0-31235 CONX CAPITAL CORPORATION ---------------------- (Exact name of registrant as specified in its charter) NEVADA 62-1736894 ------ ---------- (State or other jurisdiction of (I.R.S. Employer incorporation or organization) Identification Number) 502 N. DIVISION STREET, CARSON CITY, NV 89703 --------------------------------------- ----- (Address of principal executive offices) (Zip Code) (702) 886-0713 ------------- (Registrant's telephone number, including area code) 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 NO --- --- As of June 30, 2002, the Registrant had 6,650,000 shares of Common Stock, $.01 par value per share, outstanding. PART I - FINANCIAL INFORMATION ITEM 1. Financial Statements This quarterly report on Form 10-Q contains forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995. Such forward-looking statements should be read in conjunction with the cautionary statements and other important factors included in this Form 10-Q as well as in other filings made by the Company with the Securities and Exchange Commission ("SEC") . These forward-looking statements are subject to a number of risks and uncertainties, which could cause the Company's actual results to differ materially from those anticipated in such statements and include statements concerning plans, objectives, goals, strategies, future events or performance and underlying assumptions and other statements which are other than statements of historical facts. Factors which could cause such results to differ include the Company's limited operating history, the Company's dependence on the operations of an affiliated party, reliance upon third party financing, the need for additional financing and other factors discussed in the Company's filings with the SEC, including the Risk Factors set forth in the Company's Form 10 dated January 16, 2001. Such forward-looking statements may be identified, without limitation, by the use of the words "anticipates," "believes," "estimates," "expects," "intends," "plans," "predicts," "projects," and similar expressions. The Company's expectations, beliefs and projections are expressed in good faith and are believed by the Company to have a reasonable basis, including without limitation, management's examination of the historical operating trends, data contained in the Company's records and other data available from third parties. There can be no assurance, however, that the Company's expectations, beliefs or projections will be achieved or accomplished. -1- CONX Capital Corporation Accountants' Report and Financial Statements June 30, 2002 and December 31, 2001 -2- CONX Capital Corporation June 30, 2002 and December 31, 2001 Contents Independent Accountants' Report...............................4 Financial Statements Balance Sheets..............................................5 Statements of Income........................................6 Statements of Stockholders' Equity..........................7 Statements of Cash Flows....................................8 Notes to Financial Statements...............................9 -3- Independent Accountants' Report Board of Directors CONX Capital Corporation Little Rock, Arkansas We have reviewed the balance sheet of CONX Capital Corporation as of June 30, 2002 and the related statements of income for the three-month and six-month periods ended June 30, 2002 and 2001, and the statements of stockholders' equity and cash flows for the six-month periods ended June 30, 2002 and 2001. These financial statements are the responsibility of the Company's management. We conducted our reviews in accordance with standards established by the American Institute of Certified Public Accountants. A review of interim financial information consists principally of applying analytical procedures to financial data and making inquiries of persons responsible for financial and accounting matters. It is substantially less in scope than an audit conducted in accordance with auditing standards generally accepted in the United States of America, the objective of which is the expression of an opinion regarding the financial statements taken as a whole. Accordingly, we do not express such an opinion. Based on our reviews, we are not aware of any material modifications that should be made to the financial statements referred to above for them to be in conformity with accounting principles generally accepted in the United States of America. We have previously audited, in accordance with auditing standards generally accepted in the United States of America, the balance sheet as of December 31, 2001 and the related statements of income, stockholders' equity, and cash flows for the year then ended (not presented herein) and in our report dated February 22, 2002, we expressed an unqualified opinion on those financial statements. In our opinion, the information set forth in the accompanying balance sheet as of December 31, 2001, is fairly stated, in all material respects, in relation to the balance sheet from which it has been derived. /s/ BKD, LLP Little Rock, Arkansas July 23, 2002 -4- CONX Capital Corporation Balance Sheets June 30, 2002 and December 31, 2001 Assets 2002 2001 (Unaudited) --------------------------- Cash $ 138,444 $ 888,826 Accounts receivable - affiliated company -- 87,974 Notes receivable - affiliated companies 1,620,382 739,027 Equipment, at cost, net of accumulated depreciation 5,414,517 6,452,176 ----------- ---------- $ 7,173,343 $ 8,168,003 =========== =========== Liabilities and Stockholders' Equity Liabilities Income taxes payable $ 209,431 $ -- Long-term debt 3,556,210 5,183,758 Deferred income taxes 1,129,705 1,126,488 ---------- ---------- Total liabilities 4,895,346 6,310,246 ---------- ---------- Stockholders' Equity Common stock, $.01 par value, authorized and issued 7,000,000 shares 70,000 70,000 Retained earnings 2,225,997 1,805,757 ---------- ---------- 2,295,997 1,875,757 Treasury stock, at cost, 350,000 shares (18,000) (18,000) ---------- ---------- 2,277,997 1,857,757 ---------- ---------- $ 7,173,343 $ 8,168,003 ========== ========== -5- Statements of Income Three Months and Six Months Ended June 30, 2002 and 2001 Three Months Ended June 30, Six Months Ended June 30, 2002 2001 2002 2001 ------------------------------------------------------ (Unaudited) (Unaudited) Lease Income $ 898,209 $ 1,152,600 $ 1,805,361 $ 2,305,200 ---------- ---------- ---------- ---------- Operating Expenses Management fees 15,000 15,000 30,000 30,000 Depreciation 514,121 678,785 1,022,594 1,357,570 Interest expense 62,566 149,004 133,162 303,334 Professional fees 11,781 12,444 18,981 21,444 Directors' fees 5,000 5,000 10,000 10,000 Rent 1,500 1,500 3,000 3,000 Taxes and licenses 1,160 4,861 1,425 8,566 Other 107 113 1,121 126 ---------- --------- --------- --------- 611,235 866,707 1,220,283 1,734,040 ---------- --------- --------- --------- Operating Income 286,974 285,893 585,078 571,160 Other Income 28,936 8,256 47,810 15,141 ---------- --------- --------- ---------- Income Before Income Taxes 315,910 294,149 632,888 586,301 Provision for Income Taxes 91,277 113,601 212,648 228,459 ---------- --------- --------- ---------- Net Income $ 224,633 $ 180,548 $ 420,240 $ 357,842 ========== ========== ========== ========== Earnings Per Share Net income $ 224,633 $ 180,548 $ 420,240 $ 357,842 Weighted average shares of common stock 6,650,000 6,650,000 6,650,000 6,650,000 ---------- ---------- ---------- ---------- Basic earnings per share $ .0338 $ .0272 $ .0632 $ .0538 ========== ========== ========== ========== See Notes to Financial Statements -6- CONX Capital Corporation Statements of Changes in Stockholders' Equity Six Months Ended June 30, 2002 and 2001 Common Retained Treasury Stock Earnings Stock Total --------------------------------------------- Balance, January 1, 2000 $ 70,000 $ 915,428 $ (18,000) $ 967,428 Net income (unaudited) -- 357,842 -- 357,842 -------- --------- --------- --------- Balance, June 30, 2001 70,000 1,273,270 (18,000) 1,325,270 Net income (unaudited) -- 532,487 -- 532,487 --------- ----------- ----------- --------- Balance, December 31, 2001 70,000 1,805,757 (18,000) 1,857,757 Net income (unaudited) -- 420,240 -- 420,240 --------- ----------- ----------- --------- Balance, June 30, 2002 (Unaudited) $ 70,000 $ 2,225,997 $ (18,000) $2,277,997 ========= =========== ========= ========= See Notes to Financial Statements -7- CONX Capital Corporation Statements of Cash Flows Six Months Ended June 30, 2002 and 2001 2002 2001 (Unaudited) (Unaudited) ----------------------------- Operating Activities Net income $ 420,240 $ 357,842 Items not requiring (providing) cash Depreciation 1,022,594 1,357,570 Gain on sale of equipment (6,435) (3,738) Deferred income taxes 3,217 228,459 Changes in Accounts receivable 87,974 566 Accounts payable and accrued expenses 209,431 (3,500) ---------- ---------- Net cash provided by operating activities 1,737,021 1,937,199 ---------- ---------- Investing Activities Proceeds from sale of equipment 21,500 31,500 Increase of notes receivable (881,355) (322,255) ---------- ---------- Net cash used in investing activities (859,855) (290,755) ---------- ----------- Financing Activities Payments on long-term debt (1,627,548) (1,832,124) ---------- ---------- Net cash used in financing activities (1,627,548) (1,832,124) ---------- ---------- Decrease in Cash (750,382) (185,680) Cash, Beginning of Period 888,826 227,948 ---------- ---------- Cash, End of Period $ 138,444 $ 42,268 ========== ========== Supplemental Cash Flows Information Interest paid $ 133,162 $ 303,334 See Notes to Financial Statements -8- CONX Capital Corporation Notes to Financial Statements June 30, 2002 and December 31, 2001 Note 1: Nature of Operations and Summary of Significant Accounting Policies Nature of Operations CONX Capital Corporation, a Delaware Corporation, is a specialty commercial finance company engaged in the business of originating and securing loans and equipment leases to smaller businesses, with a primary initial focus on regional trucking companies. The Company was organized in April 1998 with its headquarters located in Carson City, Nevada. The Company originates loans and leases through marketing offices located in Carson City, Nevada, and Little Rock, Arkansas. For the periods ended June 30, 2002 and 2001, all lease income was derived from one affiliated company. Accounting Policies All adjustments made to the unaudited financial statements were of a normal recurring nature. In the opinion of management, all adjustments necessary for a fair presentation of the results of interim period have been made. The results of operations for the period are not necessarily indicative of the results to be expected for the full year. These financial statements should be read in conjunction with the financial statements and notes thereto included in the Company's Form 10 filed with the Securities and Exchange Commission. Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America 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. Equipment Equipment is depreciated over the estimated useful life of each asset. Annual depreciation is computed using the straight-line method. Estimated useful lives are as follows: Tractors 5 years Trailers 10 years Income Taxes Deferred tax liabilities and assets are recognized for the tax effects of differences between the financial statement and tax bases of assets and liabilities. A valuation allowance is established to reduce deferred tax assets if it is more likely than not that a deferred tax asset will not be realized. Revenue Recognition The Company recognizes operating lease income on the straight- line basis over the life of the operating leases. These operating leases contain provisions for service charges on late payments equal to two percent of the lease payment or, if less, the highest rate allowed by Nevada law. The leases also contain excess mileage charges in the amount of five cents per mile for miles in excess of 150,000 miles determined on an annual basis. Initial direct costs are expensed over the life of the corresponding lease in proportion to the recognition of lease income. At June 30, 2002, the approximate future minimum lease income under these operating leases are as follows: (Unaudited) ----------- 2002 $ 222,498 ========= Operating Leases The Company leases equipment under noncancellable operating leases. These leases expire in various years through 2002 and convert to a month-to-month basis if the Company does not receive notice of termination. These leases require the lessee to pay all executory costs (property taxes, maintenance and insurance). Rental income under these operating leases was $1,805,361 and $2,305,200 for the six months ended June 30, 2002 and 2001, respectively. Equipment under operating leases consists of the following at June 30, 2002 and December 31, 2001: 2002 (Unaudited) 2001 -------------------------------- Tractor $ 9,008,213 $ 9,077,743 Trailers 2,465,894 2,465,894 ---------- ---------- 11,474,107 11,543,637 Less accumulated depreciation 6,059,590 5,091,461 ----------- ----------- $ 5,414,517 $ 6,452,176 ========== ========== -9- CONX Capital Corporation Notes to Financial Statements June 30, 2002 and December 31, 2001 Note 2: Long-term Debt (Unaudited) ------------- Note payable - Navistar Financial Corp. (A) $ 2,174,876 Note payable - Banc One Leasing Corp. (B) 310,801 Note payable - Fleet Capital Leasing (C) 223,826 Note payable - GE Capital Corp. (D) 846,707 ---------- $ 3,556,210 ========== Aggregate annual maturities of long-term debt at June 30, 2002: 2002 $ 1,410,940 2003 1,409,947 2004 531,625 2005 203,698 --------- $ 3,556,210 ========== (A) Due in monthly installments through 2003 ranging from $2,253 to $53,693; including interest from 6.5% to 7.4%; secured by trucks and trailers. Notes are guaranteed by Continental Express SD, Inc. (see Note 3) (B) Due October 30, 2003; payable $14,892 monthly, including interest at 7.83%; secured by trailers. Note is guaranteed by Continental Express SD, Inc. (see Note 3) (C) Due January 28, 2003; payable $45,367 monthly, including interest at 6.5%; secured by tractors and trailers. Note is guaranteed by Continental Express SD, Inc. (see Note 3) (D) Due January 13, 2004; payable $36,421 monthly, including interest at 8.26%; secured by trucks. Note is guaranteed by Continental Express SD, Inc. (see Note 3) NOTE 3: Related Party Transactions The Company leases all of its equipment to Continental Express SD, Inc., an affiliated company, which has common ownership with the Company. The lessor is required to pay all executory costs (property taxes, maintenance and insurance). The Company uses the management and office supplies of Harvey, Inc., an affiliated company, which is owned by the Company's principal stockholder. The Company paid Harvey, Inc. $30,000 during the six months ended June 30, 2002 and 2001, for management fees. -10- CONX Capital Corporation Notes to Financial Statements June 30, 2002 and December 31, 2001 The Company has a note receivable from Harvey Manufacturing, LLC, an affiliated company, in the amount of $767,583 and $739,027 at June 30, 2002 and December 31, 2001, respectively. This note bears interest at 8.25%. The Company has a note receivable from Continental Express SD, Inc., an affiliated company, in the amount of $852,799 at June 30, 2002. This note bears interest at 8.25%. At June 30, 2002, the approximate future minimum lease income under these operating leases are as follows: (Unaudited) ------------- 2002 $ 222,498 ========= Note 4: Income Taxes The provision for income taxes includes these components: 2002 2001 (Unaudited) (Unaudited) --------------------------- Taxes currently payable $ 209,431 $ -- Deferred income taxes 3,217 228,459 --------- --------- $ 212,648 $ 228,459 ========= ========= -11- CONX Capital Corporation Notes to Financial Statements June 30, 2002 and December 31, 2001 A reconciliation of income tax expense at the statutory rate to the Company's actual income tax expense is shown below: 2002 June 30, 2001 (Unaudited) (Unaudited) ------------------------------- Computed at the statutory rate (34%) $ 215,182 $ 199,342 Increase (decrease) resulting from Other (2,534) 29,117 --------- --------- Actual tax provision $ 212,648 $ 228,459 ========= ========= The tax effects of temporary differences related to deferred taxes shown on the balance sheets were: 2002 December 31, (Unaudited) 2001 ------------------------------- Deferred tax assets Net operating loss carryforwards (expiring 2019) $ -- $ 434,425 Deferred tax liabilities Accumulated depreciation (1,129,705) (1,238,866) ----------- ----------- Net deferred tax liability $ (1,129,705) $ (804,441) =========== ========== Note 5: Equipment Equipment consists of the following at June 30, 2002 and December 31, 2001: 2002 (Unaudited) 2001 ------------------------------- Tractors $ 9,008,213 $ 9,077,743 Trailers 2,465,894 2,465,894 ----------- ----------- 11,474,107 11,543,637 Less accumulated depreciation 6,059,590 5,091,461 ----------- ----------- $ 5,414,517 $ 6,452,176 ========== ========== -12- ITEM 2. Management's Discussion and Analysis of Financial Condition and Results of Operation The following discussion and analysis below should be read in conjunction with the financial statements, including the notes thereto, appearing elsewhere in this Quarterly Report on Form 10- Q. To date, the Company's only activities and sources of operating revenue have been leases of tractor and trailer truck equipment to one affiliated company, Continental Express SD, Inc. Results of Operations Three Month Period ended June 30, 2002 Lease income was $898,209 for the quarter ended June 30, 2002, as compared to $1,152,600 for the same period in 2001, a decrease of $254,391 or 22.1%. Operating expenses (consisting primarily of interest and depreciation) for the three month period ended June 30, 2002 were $611,235, and operating expenses as a percentage of lease income were 68.1%. For the same period in 2001, operating expenses were $866,707, a decrease of $255,472 or 29.5%. Operating expenses as a percentage of lease income were 75.2% for the second quarter of 2001. Income from operations for the quarter ended June 30, 2002 was $286,974, as compared to $285,893 for the second quarter of 2001, resulting in an increase of $1,081 or 0.4% in 2002 over 2001. Other income for the three month period ended June 30, 2002 was $28,936, as compared to $8,256 for the second quarter of 2001. Income before income taxes for the quarter ended June 30, 2002 was $315,910, with a provision for income taxes of $91,277, resulting in net income for the three month period ended June 30, 2002 of $224,633. For the quarter ending June 30, 2001, income before income taxes was $294,149, with a provision for income taxes of $113,601 resulting in net income for the period of $180,584. As a result, income before income taxes increased $21,761 or 7.4% and net income increased $44,085 or 24.4% for the second quarter of 2002 over the same period in 2001. -13- Six Month Period Ended June 30, 2002 Lease income was $1,805,361 for the six months ended June 30, 2002, as compared to $2,305,200 for the same period in 2001, a decrease of $499,839 or 21.7%. Operating expenses (consisting primarily of interest and depreciation) for the six month period ended June 30, 2002 were $1,220,283 and operating expenses as a percentage of lease income were 67.6%. For the same period in 2001, operating expenses were $1,734,040, a decrease of $513,757 or 29.7%. Operating expenses as a percentage of lease income were 75.2% for the first six months of 2001. Income from operations for the six months ended June 30, 2002 was $585,078, as compared to $571,160 for the first six months of 2001, resulting in an increase of $13,918 or 2.4% in 2002 over 2001. Other income for the six month period ended June 30, 2002 was $47,810 as compared to $15,141 for the first six months of 2001. Income before income taxes for the six month period ended June 30, 2002 was $632,888, with a provision for income taxes of $212,648, resulting in net income for the six month period ended June 30, 2002 of $420,240. For the six month period ended June 30, 2001, income before income taxes was $586,301, with a provision for income taxes of $228,459, resulting in net income for the period of $357,842. As a result, income before income taxes increased $46,587 or 7.9% and net income increased $62,398 or 17.4% for the first six months of 2002 over the same period in 2001. Liquidity and Capital Resources The Company's current assets and working capital are sufficient to meet its needs for the next twelve months of operation as the Company is currently operating. However, the Company has an ongoing need to finance its lending activities. This need is expected to fluctuate as the volume of the Company's loan and lease originations increase and decrease over the next twelve months. The Company's primary cash requirements include the funding of (i) loans to affiliated entities entering into equipment leases, (ii) overcollateralization or reserve account requirements in connection with loans pooled and sold, (iii) interest, fees, and expenses associated with the Company's warehouse credit and repurchase facilities with certain financial institutions, (iv) federal and state income tax payments, and (v) ongoing administrative and other operating -14- expenses. To date, the Company currently has funded these cash requirements by credit facilities granted by Navistar Financial Corporation, Banc One Leasing Corporation, GE Capital Corporation and Fleet Capital Leasing and guaranteed by the Company's affiliate, Continental Express SD, Inc. Inflation The impact of inflation is reflected in the increased cost of the Company's operating expenses, excluding depreciation and interest expense. Changes in interest rates have a greater impact on the Company's performance than do the effects of general levels of inflation. Inflation affects the Company primarily through its effect on interest rates, since interest rates normally increase during periods of high inflation and decrease during periods of low inflation. The Company intends to manage its exposure to inflationary interest rate risks by closely monitoring the difference or spread between the effective rate of interest received by the Company and the rates payable by the Company. ITEM 3. Quantitative and Qualitative Disclosures About Market Risk Market risk represents the potential loss resulting from adverse changes in the value of financial instruments, either derivative or non-derivative, caused by fluctuations in interest rates, foreign exchange rates, commodity prices, and equity security prices. The Company handles market risks in accordance with its established policies; however, the Company does not enter into derivatives or other financial instruments for trading or speculative purposes. The Company does not have financial instruments to manage and reduce the impact of changes in interest rates at June 30, 2002 and December 31, 2001. The Company held various financial instruments at June 30, 2002 and 2001, consisting of financial assets and liabilities reported in the Company's Balance Sheets. (For additional information regarding these financial instruments, refer to Note 2 to the Company's financial statements.) Interest Rate Risk - The Company is subject to interest rate risk by financing operations through the issuance of certain long-term Notes issued to various lenders. The fair market value of long-term, fixed-interest rate debt is subject to interest rate risk. Generally, the fair value of fixed-interest rate debt will increase as interest rates fall and will decrease as interest rates rise. Foreign-Exchange Rate Risk - The Company currently has no exposure to foreign-exchange rate risk because all of its financial instruments are denominated in U.S. dollars. Commodity Price Risk - The Company has no financial instruments subject to commodity price risk. Equity Security Price Risk - The Company has no financial instruments subject to equity security price risk. -15- PART II -- OTHER INFORMATION ITEM 1. Legal Proceedings There are no legal proceedings involving the Company as a party or involving any of the Company's assets or leased properties. ITEM 2. Changes in Securities None of the rights of the holders of any of the Company's securities were materially modified during the period covered by this report. In addition, no class of securities of the Company was issued or modified which materially limited or qualified any class of its registered securities. ITEM 3. Defaults Upon Senior Securities During the period covered by this report there was no material default in the payment of any principal, interest, sinking or purchase fund installment, or any other material default not cured within 30 days with respect to any indebtedness of the Company. ITEM 4. Submission of Matters to a Vote of Security Holders There were no matters submitted to a vote of security holders. ITEM 5. Other Information None ITEM 6. (a) Exhibits and Reports on Form 10-Q Exhibit Number Description of Exhibit -------------- ---------------------- 99.1 Certificate of Chief Executive Officer of CONX Captial Corporation pursuant to 18 U.S.C. Section 1350. 99.2 Certificate of Chief Financial Officer of CONX Captial Corporation pursuant to 18 U.S.C. Section 1350. (b) Reports on Form 8-K No reports were filed for the period covered by this report. -16- SIGNATURES Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. CONX Capital Corporation By: /s/ Edward M. Harvey ------------------------------------ Edward M. Harvey, Chairman, Director and President (Principal Executive Officer) Dated: August 15, 2002 By: /s/ Todd W. Tiefel ------------------------------------ Todd W. Tiefel, Secretary, Treasurer and Director (Principal Financial and Accounting Officer) Dated: August 15, 2002 -17- Exhibit 99.1 CERTIFICATION OF CHIEF EXECUTIVE OFFICER OF CONX CAPTIAL CORPORATION PURSUANT TO 18 U.S.C. SECTION 1350 In connection with the accompanying report on Form 10-Q for the period ending June 30, 2002 and filed with the Securities and Exchange Commission on the date hereof (the "Report"), I, Edward M. Harvey, Chief Executive Officer of CONX Capital Corporation, hereby certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes - Oxley Act of 2002, that: 1. The report fully complies with the requirements of Section 13 (a) or 15 (d) of the Secutities Exchange act of 1934; and 2. The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the company. /s/ Edward M. Harvey --------------------------- Edward M. Harvey Chief Executive Officer -18- Exhibit 99.2 CERTIFICATION OF CHIEF FINANCIAL OFFICER OF CONX CAPTIAL CORPORATION PURSUANT TO 18 U.S.C. SECTION 1350 In connection with the accompanying report on Form 10-Q for the period ending June 30, 2002 and filed with the Securities and Exchange Commission on the date hereof (the "Report"), I, Todd W. Tiefel, Chief Financial Officer of CONX Capital Corporation, hereby certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes - Oxley Act of 2002, that: 1. The report fully complies with the requirements of Section 13 (a) or 15 (d) of the Secutities Exchange act of 1934; and 2. The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the company. /s/ Todd W. Tiefel ---------------------------- Todd W. Tiefel Chief Financial Officer -19-