Please wait while we load the requested 10-Q report or click the link below:
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Pursuant to Section 13 or 15(d) of the Securities Exchange Act
Date of Report (Date of earliest event reported): March 26, 2020
NEW CONCEPT ENERGY, INC.
(Exact Name of Registrant as Specified in its Charter)
(State or other
jurisdiction of incorporation)
1603 LBJ Freeway, Suite 300
|(Address of principal executive offices)||(Zip Code)|
Registrant’s telephone number, including area code 972-407-8400
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the Registrant under any of the following provisions:
|[ ]||Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)|
|[ ]||Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)|
|[ ]||Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))|
|[ ]||Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))|
Securities registered pursuant to Section 12(b) of the Act:
Title of Each Class
Name of Each Exchange
on which Registered
Common Stock, par value $0.01
Indicate by check mark whether the Registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company [ ]
If an emerging growth company, indicate by check mark if the Registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.
Section 2 – Financial Information
Item 2.02. Results of Operations and Financial Condition
On March 26, 2020, New Concept Energy, Inc. (“GBR” or the “Company”) announced its operational results for the year ended December 31, 2019. A copy of the announcement is attached as Exhibit “99.1.”
The information furnished pursuant to Item 2.02 in this Form 8-K, including Exhibit “99.1” attached hereto, shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934 or otherwise subject to the liabilities of that Section, unless we specifically incorporate it by reference in a document filed under the Securities Act of 1933 or the Securities Exchange Act of 1934. We undertake no duty or obligation to publicly update or revise the information furnished pursuant to Item 2.02 of this Current Report on Form 8-K.
Section 9 – Financial Statements and Exhibits
Item 9.01. Financial Statements and Exhibits
The following exhibit is furnished with this Report:
Exhibit No. Description
99.1* Press release dated March 26, 2020
* Furnished herewith
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this Current Report on Form 8-K to be signed on its behalf by the undersigned, hereunto duly authorized.
Dated: March 27, 2020
|NEW CONCEPT ENERGY, INC.|
|By:||/s/ Gene S. Bertcher|
|Gene S. Bertcher|
|Chief Financial Officer|
FOR IMMEDIATE RELEASE
New Concept Energy Inc.
Gene Bertcher (800) 400-6407
New Concept Energy, Inc. Reports Fourth Quarter and Full Year 2019 Results
Dallas – March 26, 2020 - New Concept Energy, Inc. (NYSE American: GBR), (the “Company” or “NCE”) a Dallas-based oil and gas company, today reported Results of Operations for the fourth quarter and the full year ended December 31, 2019.
During the three months ended December 31, 2019 the Company reported a net loss of $17,000 compared to a net loss of $55,000 for the same period ended December 31, 2018.
For the full year ended December 31, 2019 the Company reported a net loss of $2.3 million or ($0.46) per share, compared to a net loss of $484,000 or ($0.21) per share for the same period ended December 31, 2018.
Revenues: Total revenues from the oil & gas operation was $590,000 in 2019 and $682,000 in 2018. The decrease was due to the rate the Company received for the sale of its natural gas during 2019.
Operating Expenses: Operating expenses for continuing oil & gas operations was $686,000 in 2019 and $844,000 in 2018. This decrease was principally due to a reduction of depreciation and depletion expense of $166,000.
In 2019 pursuant to the requirements of the “full cost ceiling test” for oil & gas companies we recorded a non-cash charge to operations of $2.3 million to write down its investment in West Virginia. In September 2019 the Company unsuccessfully drilled a well which resulted in dry hole. As the well did not prove up the estimated probable and possible reserves, the Company had to deem the applicable reserve estimates as impaired. In the third quarter the company booked an impairment expense of $2,285,000 which represents a reduction of both the estimated probable and possible reserves as well as the cost of drilling the failed well. This charge to earnings was caused by a revaluation of the Company's non-producing oil and gas reserves.
Corporate Expenses were $412,000 in 2019 and $353,000 in 2018. The increase was principally due to an increase in consulting expenses.
Interest Income: Interest Income was $237,000 in 2019 as compared to $37,000 in 2018. The increase was due to the interest earned from investing the proceeds from the issuance and sale of common stock in December 2018.
About New Concept Energy, Inc.
New Concept Energy, Inc. is a Dallas-based oil and gas company which owns oil and gas wells and mineral leases in Ohio and in West Virginia. For more information, visit the Company’s website at www.newconceptenergy.com.
New Concept Energy, Inc.
Gene Bertcher (800) 400-6407
|NEW CONCEPT ENERGY, INC. AND SUBSIDIARIES|
|CONSOLIDATED BALANCE SHEETS|
|(amounts in thousands)|
|Cash and cash equivalents||$||22||$||361|
|Accounts receivable from oil and gas sales||73||72|
|Current portion note receivable (including $4,005 and $4,017 in 2019 and 2018 from related parties)||4,046||4,063|
|Total current assets||4,141||4,496|
|Oil and natural gas properties (full cost accounting method)|
|Proved developed and undeveloped oil and gas properties, net of depletion||767||2,517|
|Property and equipment, net of depreciation|
|Land, buildings and equipment - oil and gas operations||668||618|
|NEW CONCEPT ENERGY, INC. AND SUBSIDIARIES|
|CONSOLIDATED BALANCE SHEETS - CONTINUED|
|(amounts in thousands, except share amounts)|
|Liabilities and stockholders' equity|
|Accounts payable - trade (including $180 and $37 in 2019 and 2018 due to related parties)||$||355||$||59|
|Current portion of long term debt||44||59|
|Total current liabilities||434||150|
|Notes payable less current portion||177||201|
|Asset retirement obligation||2,770||2,770|
|Series B convertible preferred stock, $10 par value, liquidation value|
|of $100 authorized 100 shares, issued and outstanding one share||1||1|
|Common stock, $.01 par value; authorized, 100,000,000|
|shares; issued and outstanding, 5,131,934 shares|
|at December 31, 2019 and 2018||51||51|
|Additional paid-in capital||63,579||63,579|
|Total liabilities & stockholders' equity||$||5,790||$||7,882|
The following information was filed by New Concept Energy, Inc. (GBR) on Friday, March 27, 2020 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-Q Quarterly Report statement of earnings and operation as management may choose to highlight particular information in the press release.
View differences made from one quarter to another to evaluate New Concept Energy, Inc.'s financial trajectory
Compare this 10-Q Quarterly Report to its predecessor by reading our highlights to see what text and tables were
removed , and by New Concept Energy, Inc..