New Concept Energy, Inc. (NYSE American: GBR), (the “Company” or “NCE”) a Dallas based company, today reported Results of Operations for the fourth quarter and the full year ended December 31, 2020.
Discontinued Operations:
In August 2020 the Company sold its oil and gas operation and recorded a gain from the sale of $2.1 million. The sales price was $85,000 however the Company had previously established a reserve for plug and abandonment costs of $2 million. Upon the sale the Company was relieved of any plug and abandonment obligations.
For the full year ended December 31, 2020 the Company reported a net loss from discontinued operations of $170,000 as compared to net loss of $2.4 million for the same period ended December 31, 2019. Included in the loss in 2019 is an impairment loss of $2.3 million whereby the Company had reduced the recorded value of its oil and gas operation.
Continuing Operations:
During the three months ended December 31, 2020 the Company reported a net loss from continuing operations of $32,000 compared to a net loss of $17,000 for the same period ended December 31, 2019.
For the full year ended December 31, 2020 the Company reported a net loss from continuing operations of $52,000 as compared to net income of $60,000 for the same period ended December 31, 2019.
Revenues: Total revenues from rent for the leased property was $101,000 in 2020 and $98,000 in 2019.
Operating Expenses : Operating expenses for the real estate property was $72,000 in 2020 and $61,000 in 2019. General and administrative expenses were $396,000 in 2020 and 418,000 in 2019.
Interest Income : Interest Income was $242,000 in 2020 as compared to $257,000 in 2019. The decrease was due to the reduction in the principal balance outstanding due to payments received.
Other Income : Other income was $85,000 in 2020 which is an income tax refund for prior years. Other income was $199,000 in 2019 which is comprised of a gain on sale of equipment of $46,000 and the settlement of a legal claim of $153,000.
Discontinued Operations: During the first nine months of 2020 the Company recorded a net loss from its oil and gas operations of $170,000. In August 2020 the Company sold the oil and gas operation and recorded a gain of $2,138,000.
About New Concept Energy, Inc.
New Concept Energy, Inc. is a Dallas-based company which owns real estate in West Virginia. For more information, visit the Company’s website at www.newconceptenergy.com .
|
| NEW CONCEPT ENERGY, INC. AND SUBSIDIARIES |
| CONSOLIDATED BALANCE SHEETS |
| (amounts in thousands) |
|
|
December 31, |
|
2020
|
|
2019
|
| Assets |
|
|
|
|
|
|
|
| Current assets |
|
|
|
| Cash and cash equivalents |
$
|
27
|
|
$
|
22
|
| Current portion note receivable (including $ $3,631 and $4,005 in 2020 and 2019 from related parties) |
|
3,683
|
|
|
4,046
|
| Other current assets |
|
92
|
|
|
-
|
| Total current assets |
|
3,802
|
|
|
4,068
|
|
|
|
|
| Property and equipment, net of depreciation |
|
|
|
| Land, buildings and equipment |
|
656
|
|
|
668
|
|
|
|
|
| Note Receivable |
|
153
|
|
|
214
|
|
|
|
|
| Assets held for sale |
|
-
|
|
|
840
|
|
|
|
|
| Total assets |
$
|
4,611
|
|
$
|
5,790
|
|
|
|
|
|
| NEW CONCEPT ENERGY, INC. AND SUBSIDIARIES |
| CONSOLIDATED BALANCE SHEETS - CONTINUED |
| (amounts in thousands, except share amounts) |
|
|
|
|
|
December 31, |
|
2020
|
|
2019
|
| Liabilities and stockholders' equity |
|
|
|
|
|
|
|
| Current liabilities |
|
|
|
| Accounts payable - trade (including $55 and $180 in 2020 and 2019 due to related parties) |
$
|
80
|
|
|
$
|
226
|
|
| Accrued expenses |
|
32
|
|
|
|
20
|
|
| Current portion of long term debt |
|
52
|
|
|
|
44
|
|
| Total current liabilities |
|
164
|
|
|
|
290
|
|
|
|
|
|
| Long-term debt |
|
|
|
| Notes payable less current portion |
|
122
|
|
|
|
177
|
|
|
|
|
|
| Liabilities of assets held for sale |
|
-
|
|
|
|
2,914
|
|
|
|
|
|
| Total liabilities |
|
286
|
|
|
|
3,381
|
|
|
|
|
|
| Stockholders' equity |
|
|
|
| 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, 2020 and 2019 |
|
51
|
|
|
|
51
|
|
| Additional paid-in capital |
|
63,579
|
|
|
|
63,579
|
|
| Accumulated deficit |
|
(59,306
|
)
|
|
|
(61,222
|
)
|
|
|
4,325
|
|
|
|
2,409
|
|
|
|
|
|
| Total liabilities & stockholders' equity |
$
|
4,611
|
|
|
$
|
5,790
|
|
|
|
|
|
|
|
|
|
|
|
| NEW CONCEPT ENERGY, INC. AND SUBSIDIARIES |
| CONSOLIDATED STATEMENTS OF OPERATIONS |
| (amounts in thousands, except per share data) |
|
|
|
|
|
|
|
Year Ended December 31, |
|
2020
|
|
2019
|
|
2018
|
| Revenue |
|
|
|
|
|
| Rent |
$
|
101
|
|
|
$
|
98
|
|
|
$
|
123
|
|
|
|
101
|
|
|
|
98
|
|
|
|
123
|
|
|
|
|
|
|
|
| Operating expenses |
|
|
|
|
|
| Operating Expenses |
|
72
|
|
|
|
61
|
|
|
|
59
|
|
| Corporate general and administrative |
|
396
|
|
|
|
418
|
|
|
|
359
|
|
|
|
468
|
|
|
|
479
|
|
|
|
418
|
|
| Operating loss |
|
(367
|
)
|
|
|
(381
|
)
|
|
|
(295
|
)
|
|
|
|
|
|
|
| Other income (expense) |
|
|
|
|
|
| Interest income (including $226 and $240 for the year ended 2020 and 2019 from related parties) |
|
242
|
|
|
|
257
|
|
|
|
37
|
|
| Interest expense |
|
(12
|
)
|
|
|
(15
|
)
|
|
|
(18
|
)
|
| Other income (expense), net |
|
85
|
|
|
|
199
|
|
|
|
11
|
|
|
|
315
|
|
|
|
441
|
|
|
|
30
|
|
|
|
|
|
|
|
| Net income (loss) from continuing operations |
|
(52
|
)
|
|
|
60
|
|
|
|
(265
|
)
|
|
|
|
|
|
|
| Net income (loss) from discontinued operations |
|
|
|
|
|
| Gain (loss) from discontinued operations |
|
(170
|
)
|
|
|
(2,412
|
)
|
|
|
(219
|
)
|
| Gain from Disposal of oil and gas operations |
|
2,138
|
|
|
|
|
|
|
|
1,968
|
|
|
|
(2,412
|
)
|
|
|
(219
|
)
|
|
|
|
|
|
|
| Net income (loss) applicable to common shares |
$
|
1,916
|
|
|
$
|
(2,352
|
)
|
|
$
|
(484
|
)
|
|
|
|
|
|
|
| Net income (loss) per common share-basic and diluted |
$
|
0.37
|
|
|
$
|
(0.46
|
)
|
|
$
|
(0.21
|
)
|
|
|
|
|
|
|
| Weighted average common and equivalent shares outstanding - basic |
|
5,132
|
|
|
|
5,132
|
|
|
|
2,358
|
|
|
|
|
|
|
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20210331005990/en/
New Concept Energy Inc.
Gene Bertcher
(800) 400-6407
info@newconceptenergy.com