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What changed in New Concept Energy, Inc.'s 10-K — 2022 vs 2023

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Paragraph-level year-over-year comparison of New Concept Energy, Inc.'s 2022 and 2023 10-K annual filings, covering the Business, Risk Factors, Legal Proceedings, Cybersecurity, MD&A and Market Risk sections. Every new, removed and edited paragraph is highlighted side-by-side so you can see exactly what management changed in the 2023 report.

+21 added−22 removedSource: 10-K (2024-04-01) vs 10-K (2023-03-21)

Top changes in New Concept Energy, Inc.'s 2023 10-K

21 paragraphs added · 22 removed · 20 edited across 5 sections

Item 1. Business

Business — how the company describes what it does

3 edited+0 added−0 removed8 unchanged
Biggest changeOil and Gas Operations In August 2020, the Company sold its oil and gas wells and mineral leases which were located in Ohio and West Virginia. The oil and operations for the periods included in this report are reflected as discontinued operations.
Biggest changeOil and Gas Operations In August 2020, the Company sold its oil and gas wells and mineral leases which were located in Ohio and West Virginia.
Insurance The Company currently maintains property and liability insurance intended to cover claims for its real estate and corporate operations. Employees At December 31, 2022, the Company employed the services of 3 people with the remainder of the work contracted to third parties. The Company believes it maintains good relationships with its employees.
Insurance The Company currently maintains property and liability insurance intended to cover claims for its real estate and corporate operations. Employees At December 31, 2023, the Company employed the services of 3 people with the remainder of the work contracted to third parties. The Company believes it maintains good relationships with its employees.
Located on the land are four structures totaling approximately 53,000 square feet. Of this total area the main industrial / office building contains approximately 24,800 square feet of which as of December 31,2022 approximately 16,000 of industrial area is leased for $100,000 per annum.
Located on the land are four structures totaling approximately 53,000 square feet. Of this total area the main industrial / office building contains approximately 24,800 square feet of which as of December 31, 2023 approximately 16,000 of industrial area is leased for $100,000 per annum.

Item 1A. Risk Factors

Risk Factors — what could go wrong, per management

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Biggest changeItem 1A. Risk Factors Risks Related to the Company An investment in our securities involves various risks. An investor should carefully consider the following risk factors in conjunction with the other information in this report before trading our securities. Our governing documents contain anti-takeover provisions that may make it more difficult for a third party to acquire control of us.
Biggest changeItem 1A. Risk Factors Risks Related to the Company An investment in our securities involves certain risks. An investor should carefully consider the following risk factors in conjunction with the other information in this report before trading our securities. Our governing documents contain anti-takeover provisions that may make it more difficult for a third party to acquire control of us.

Item 2. Properties

Properties — owned and leased real estate

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Biggest changeLocated 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.
Biggest changeLocated 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. Item 3. Legal Proceedings Currently the Company is not involved in any material legal proceedings. PART II

Item 5. Market for Registrant's Common Equity

Market for Common Equity — stock, dividends, buybacks

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Biggest changeMarket for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities Market Information The common stock of the Company is listed and traded on the NYSE American using the symbol “GBR.” The following table sets forth the high and low sales prices as reported in the reporting system of the NYSE American and other published financial sources. 2022 2021 High Low High Low First Quarter $ 6.25 $ 2.22 $ 30.99 $ 1.79 Second Quarter $ 3.47 $ 1.54 $ 9.41 $ 3.66 Third Quarter $ 2.34 $ 1.05 $ 7.35 $ 3.11 Fourth Quarter $ 2.00 $ 1.06 $ 5.37 $ 2.34 On March 18, 2023, the closing price of the Company’s Common Stock was $1.06 per share.
Biggest changeMarket for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities Market Information The common stock of the Company is listed and traded on the NYSE American using the symbol “GBR.” The following table sets forth the high and low sales prices as reported in the reporting system of the NYSE American and other published financial sources. 2023 2022 High Low High Low First Quarter $ 1.40 $ 0.99 $ 6.25 $ 2.22 Second Quarter $ 1.26 $ 1.02 $ 3.47 $ 1.54 Third Quarter $ 1.24 $ 0.92 $ 2.34 $ 1.05 Fourth Quarter $ 1.37 $ 1.02 $ 2.00 $ 1.06 On March 29, 2024, the closing price of the Company’s Common Stock was $1.06 per share.
The Company’s Common Stock was held by approximately 2,500 holders of record. Dividends The Company paid no dividends on its Common Stock in 2022 or 2021.
The Company’s Common Stock was held by approximately 3,500 stockholders. 6 Table of Contents Dividends The Company paid no dividends on its Common Stock in 2023 or 2022.
No such purchases were made in 2022 or 2021. Item 6. Selected Financial Data Optional and not included.
No such purchases were made in 2023 or 2022.

Item 7. Management's Discussion & Analysis

Management's Discussion & Analysis (MD&A) — revenue / margin commentary

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Biggest changeResults of Operations Fiscal 2022 as compared to 2021 Revenues: Revenues from rent for the leased property was $101,000 in 2022 and 2021. Revenues from managing the oil and gas operations for a third party was $111,000 in 2022. Operating Expenses : Operating expenses for the real estate property was $57,000 in 2022 and $77,000 in 2021.
Biggest changeRevenues from managing the oil and gas operations for a third party was $51,000 and $111,000 in 2023 and 2022. The management agreement has the Company receiving a management fee of 10% of oil and gas revenue. The decrease in management fees is due to a decrease in the revenue due to a decline in oil and gas prices.
Included in other income for 2022 is $63,000 which represents the collection of an investment that had previously been fully reserved and a gain of $68,000 from the sale of equipment. Fiscal 2021 as compared to 2020 Revenues: Total revenues from rent for the leased property was $101,000 in 2021 and 2020.
Included in other income for 2022 is $63,000 which represents the collection of an investment that had previously been fully reserved and a gain of $68,000 from the sale of equipment. Fiscal 2022 as compared to 2021 Revenues: Total revenues from rent for the leased property was $101,000 in 2022 and 2021.
The future recoverability of the Company’s net deferred tax assets is dependent upon the generation of future taxable income prior to the expiration of the loss carry forwards. At December 31, 2022, the Company had a deferred tax asset due to tax deductions available to it in future years.
The future recoverability of the Company’s net deferred tax assets is dependent upon the generation of future taxable income prior to the expiration of the loss carry forwards. At December 31, 2023, the Company had a deferred tax asset due to tax deductions available to it in future years.
Actual results may differ from these estimates under different assumptions or conditions. 6 Table of Contents Deferred Tax Assets Significant management judgment is required in determining the provision for income taxes, deferred tax assets and liabilities and any valuation allowance recorded against net deferred tax assets.
Actual results may differ from these estimates under different assumptions or conditions. Deferred Tax Assets Significant management judgment is required in determining the provision for income taxes, deferred tax assets and liabilities and any valuation allowance recorded against net deferred tax assets.
However, as management could not determine that it was more likely than not that the benefit of the deferred tax asset would be realized, a 100% valuation allowance was established. Liquidity and Capital Resources At December 31, 2022, the Company had current assets of $4,008,000 and current liabilities of $60,000.
However, as management could not determine that it was more likely than not that the benefit of the deferred tax asset would be realized, a 100% valuation allowance was established. Liquidity and Capital Resources At December 31, 2023 and 2022, the Company had current assets of $459,000 and $466,000 and current liabilities of $75,000 and $63,000, respectively.
Critical Accounting Policies and Estimates The Company’s discussion and analysis of its financial condition and results of operations are based upon the Company’s consolidated financial statements, which have been prepared in accordance with accounting principles generally accepted in the United States.
The Company’s principal source of cash and income was the interest it receives from notes receivables. Critical Accounting Policies and Estimates The Company’s discussion and analysis of its financial condition and results of operations are based upon the Company’s consolidated financial statements, which have been prepared in accordance with accounting principles generally accepted in the United States.
Operating Expenses : Operating expenses for the real estate property was $77,000 in 2021 and $72,000 in 2020. General and administrative expenses were $360,000 in 2021 and $396,000 in 2020. Interest Income : Interest Income was $220,000 in 2021 as compared to $242,000 in 2020.
Operating Expenses : Operating expenses for the real estate property was $57,000 in 2022 and $77,000 in 2021. General and administrative expenses were $317,000 in 2022 and $360,000 in 2021. Interest Income : Interest Income was $212,000 in 2022 as compared to $220,000 in 2021.
The decrease was due to the reduction in the principal balance outstanding due to payments received. Other Income : Other income was $191,000 in 2021compared to $85,000 in 2020.
The decrease was due to the reduction in the principal balance outstanding due to payments received. Other Income : Other income was $131,000 in 2022 compared to $191,000 in 2021.
Included in other income for 2021 is an income tax refund for prior years of $91,000 and $100,000 from the sale of a receivable that had been fully reserved in prior years. Other income was $85,000 in 2020 which is principally an income tax refund for prior years.
Included in other income for 2022 is $63,000 which represents the collection of an investment that had previously been fully reserved and a gain of $68,000 from the sale of equipment Included in other income for 2021 is an income tax refund for prior years of $91,000 and $100,000 from the sale of a receivable that had been fully reserved in prior years.
Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operation Overview The Company’s operations during 2022 include both leasing its office building located in Parkersburg West Virginia and managing the oil and gas operations it sold in August 2020. The Company’s principal source of cash and income was the interest it receives from notes receivables.
Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operation Overview The Company’s operations during 2023 include both leasing its office building located in Parkersburg West Virginia and managing the oil and gas operations it sold in August 2020 to a third party.
Cash and cash equivalents totaled $436,000 at December 31, 2022 and $252,000 at December 31, 2021. New Concept’s principal sources of cash was rent from the tenant occupying part of its building in West Virginia, management fees and interest from its notes receivable.
New Concept’s principal sources of cash was rent from the tenant occupying part of its building in West Virginia, management fees and interest from its notes receivable. 7 Table of Contents Results of Operations Fiscal 2023 as compared to 2022 Revenues: Revenues from rent for the leased property was $101,000 in 2023 and 2022.
General and administrative expenses were $317,000 in 2022 and $360,000 in 2021. Interest Income : Interest Income was $212,000 in 2022 and $220,000 in 2021. Other Income : Other income was $131,000 in 2022 compared to $191,000 in 2021.
Operating Expenses : Operating expenses for the real estate property was $57,000 in 2023 and 2022. General and administrative expenses were $338,000 in 2023 and $317,000 in 2022. Interest Income : Interest Income was $222,000 in 2023 and $212,000 in 2022. Other Income : Other income was $131,000 in 2022.
Removed
In August 2020, the Company sold its oil and gas wells and mineral leases which were located in Ohio and West Virginia. The oil and operations for the periods included in this report are reflected as discontinued operations.
Added
Cash and cash equivalents totaled $447,000 at December 31, 2023 and $436,000 at December 31, 2022.
Removed
Other income was $85,000 in 2020 which is an income tax refund for prior years.

Other GBR 10-K year-over-year comparisons