Business Wire | Mar 31, 2021 04:56PM EDT

New Concept Energy, Inc. Reports Fourth Quarter and Full Year 2020 Results

Mar. 31, 2021

DALLAS--(BUSINESS WIRE)--Mar. 31, 2021--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 SUBSIDIARIESCONSOLIDATED BALANCE SHEETS(amounts in thousands) December 31, 2020 2019

Assets Current assetsCash and cash equivalents $ 27 $ 22

Current portion note receivable (including $ $3,631 and $4,005 3,683 4,046in 2020 and 2019 from related parties)Other current assets 92 -

Total current assets 3,802 4,068

Property and equipment, net of depreciationLand, 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 SUBSIDIARIESCONSOLIDATED BALANCE SHEETS - CONTINUED(amounts in thousands, except share amounts)December 31,2020

2019

Liabilities and stockholders' equityCurrent liabilitiesAccounts payable - trade (including $55 and $180 in 2020 and 2019 due to related parties)$

80

$

226

Accrued expenses32

20

Current portion of long term debt52

44

Total current liabilities164

290

Long-term debtNotes payable less current portion122

177

Liabilities of assets held for sale-

2,914

Total liabilities286

3,381

Stockholders' equitySeries B convertible preferred stock, $10 par value, liquidation valueof $100 authorized 100 shares, issued and outstanding one share1

1

Common stock, $.01 par value; authorized, 100,000,000shares; issued and outstanding, 5,131,934 sharesat December 31, 2020 and 201951

51

Additional paid-in capital63,579

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 SUBSIDIARIESCONSOLIDATED BALANCE SHEETS - CONTINUED(amounts in thousands, except share amounts) December 31, 2020 2019

Liabilities and stockholders' equity Current liabilitiesAccounts payable - trade (including $55 and $180 in $ 80 $ 226 2020 and 2019 due to related parties)Accrued expenses 32 20

Current portion of long term debt 52 44

Total current liabilities 164 290

Long-term debtNotes payable less current portion 122 177

Liabilities of assets held for sale - 2,914

Total liabilities 286 3,381

Stockholders' equitySeries B convertible preferred stock, $10 par value,liquidation valueof $100 authorized 100 shares, issued and outstanding 1 1 one shareCommon stock, $.01 par value; authorized, 100,000,000shares; issued and outstanding, 5,131,934 sharesat 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 SUBSIDIARIESCONSOLIDATED STATEMENTS OF OPERATIONS(amounts in thousands, except per share data)Year Ended December 31,2020

2019

2018

RevenueRent$

101

$

98

$

123

101

98

123

Operating expensesOperating Expenses72

61

59

Corporate general and administrative396

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), net85

199

11

315

441

30

Net income (loss) from continuing operations(52

)

60

(265

)

Net income (loss) from discontinued operationsGain (loss) from discontinued operations(170

)

(2,412

)

(219

)

Gain from Disposal of oil and gas operations2,138

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 - basic5,132

5,132

2,358

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CONTACT: New Concept Energy Inc. Gene Bertcher (800) 400-6407 info@newconceptenergy.com