10-K: New Concept Energy Reports Increased 2025 Net Loss

New Concept Energy, Inc. reported an increased net loss of $46,000 for fiscal year 2025, driven by higher operating expenses and lower interest income, despite growth in rental and management fee revenues.

Summary

• Net loss increased to $46,000 in 2025 from $18,000 in 2024.
• Total revenues grew to $155,000 in 2025 from $146,000 in 2024, primarily from real estate rent and oil and gas management fees.
• Rent revenue increased slightly to $103,000 in 2025 from $101,000 in 2024.
• Oil and gas management fee revenue rose to $52,000 in 2025 from $45,000 in 2024 due to increased oil and gas sales.
• Interest income decreased to $169,000 in 2025 from $213,000 in 2024 due to lower interest rates.
• Other income significantly increased to $50,000 in 2025 from $6,000 in 2024, primarily from the collection of a previously written-off note receivable.
• Operating expenses for real estate increased to $56,000 in 2025 from $48,000 in 2024.
• General and administrative expenses increased to $364,000 in 2025 from $335,000 in 2024.
• The company maintains a full valuation allowance against its deferred tax assets of $1,224,000 due to uncertainty of future realization.
• Current assets were $396,000 and current liabilities were $69,000 as of December 31, 2025, indicating a strong current ratio.
• Cash and cash equivalents increased to $383,000 at December 31, 2025, from $363,000 at December 31, 2024.

Sentiment

Score: 4

Explanation: StockSavvy.ai views this as a mixed filing with increased losses and declining interest income, offset by some revenue growth and strong liquidity. The full valuation allowance on deferred tax assets and anti-takeover provisions are notable concerns for investors.

Positives

• Total revenues increased to $155,000 in 2025, up from $146,000 in 2024.
• Oil and gas management fee revenue grew to $52,000 in 2025, an increase from $45,000 in 2024, driven by higher oil and gas sales.
• Other income saw a substantial increase to $50,000 in 2025, primarily from the collection of a previously written-off note receivable.
• Cash and cash equivalents increased to $383,000 at December 31, 2025, from $363,000 at December 31, 2024.
• The company has no outstanding long-term debt, eliminating exposure to changes in interest rates.
• Current assets of $396,000 significantly exceed current liabilities of $69,000 as of December 31, 2025, indicating strong short-term liquidity.

Negatives

• Net loss increased to $46,000 in 2025, compared to a net loss of $18,000 in 2024.
• Interest income decreased to $169,000 in 2025 from $213,000 in 2024, attributed to lower interest rates.
• General and administrative expenses increased to $364,000 in 2025 from $335,000 in 2024.
• Operating expenses for the real estate property increased to $56,000 in 2025 from $48,000 in 2024.
• A 100% valuation allowance was established against the deferred tax asset of $1,224,000, indicating management's uncertainty about realizing future tax benefits.
• The company has a history of not paying cash dividends on its common stock for at least the last ten fiscal years.

Risks

• Governing documents contain anti-takeover provisions (e.g., 80% vote for bylaws/key articles, business combination control act for 10%+ owners, 80% for special meetings) that may make it more difficult for a third party to acquire control, potentially depriving stockholders of a premium for their shares.
• Reliance on Pillar Income Asset Management, Inc. for information technology and cybersecurity, meaning the company relies on Pillar's personnel to identify and manage material cybersecurity risks.
• The company's ability to meet current cash obligations relies on cash received from operations and the collection of notes receivable, including a $3.5 million note receivable.
• Uncertainty regarding the realization of deferred tax assets, leading to a full valuation allowance against net operating loss carryforwards.
• Utilization of net operating loss carryforwards may be subject to annual limitations under Internal Revenue Code Section 382 in the event of certain changes in ownership.

Future Outlook

The company intends to continue to operate and/or sell its West Virginia property and seeks to establish or acquire new business operations. It also continues to provide advisory and management services to an independent West Virginia oil and gas company. The company disclaims any intention or obligation to update or revise forward-looking statements.

Management Comments

• We believe that our expectations are based upon reasonable assumptions, [but] we can give no assurance that our goals will be achieved.
• The Company intends to continue to operate and or sell its West Virginia property.
• The Company seeks to establish or acquire new business operations.
• Management is not aware of any non-compliance by the Company as regards applicable regulatory requirements that would have a material adverse effect on the Companys financial condition or results of operations.
• The Company believes this space [principal offices] is presently suitable, fully utilized and will be adequate for the foreseeable future.
• The Company believes that by purchasing these services [from Pillar] through certain large entities it can get lower costs and better service.
• Management assessed the effectiveness of the Companys internal control over financial reporting... and has concluded that Companys internal control over financial reporting was effective as of December 31, 2025.

Industry Context

StockSavvy.ai notes that New Concept Energy operates in a niche combining real estate and oil and gas management services. The increase in oil and gas management fees suggests a positive trend in the underlying energy market or the managed assets' performance, while the decline in interest income reflects broader interest rate movements. The company's strategy of seeking new business operations indicates an intent to diversify or grow beyond its current limited scope, which is common for smaller entities looking to enhance shareholder value.

Comparison to Industry Standards

• N/A The filing does not provide specific comparable companies, projects, or results to assess against global benchmarks. The company's operations are highly specific (one property, one management contract), making direct comparisons challenging without external data.

Corporate Governance

Legal Proceedings

• The Company is not involved in any material legal proceedings as of December 31, 2025.

Related Party Transactions

• New Concept Energy conducts business with Pillar Income Asset Management (Pillar), a wholly-owned subsidiary of Realty Advisors, Inc.
• Gene S. Bertcher, the company's Chairman, President, CEO, and Treasurer, also serves as a director of Pillar.
• Pillar provides services including payroll processing, insurance acquisition, information technology, cybersecurity, and other administrative matters to New Concept Energy.
• A formal agreement for these services between the Company and Pillar became effective on September 1, 2024.
• The fee paid to Pillar for its services for the year ended December 31, 2025, was $36,000.
• All transactions between the Company and any officer, director, or their affiliates must be approved by independent members of the Board of Directors.
• Realty Advisors, Inc. beneficially owns 400,000 shares, representing 7.79% of the company's outstanding common stock as of March 23, 2026.
• The company has a $3,542,000 note receivable from American Realty Investors, Inc., which is unsecured and matures on September 30, 2027.

Stakeholder Impact

• Shareholders: Increased net loss and declining interest income may negatively impact shareholder value. Anti-takeover provisions could limit opportunities for premium acquisition offers. No dividends paid, consistent with past policy to retain earnings for debt and expansion.
• Employees: The company employs only 2 people directly, with the remainder contracted, suggesting a lean operational structure. Good relationships are maintained.
• Customers (Tenants & Oil/Gas Partner): Stable rental revenue and increased oil and gas management fees suggest continued operational relationships.
• Creditors: Strong current asset to liability ratio and no long-term debt indicate a healthy short-term financial position for creditors. The $3.5M note receivable is unsecured, which could be a risk if the debtor defaults.

Next Steps

• Continue to operate and/or sell the Parkersburg, West Virginia property.
• Continue providing advisory and management services to an independent West Virginia oil and gas company.
• Seek to establish or acquire new business operations.
• Evaluate the impact of new accounting standards (ASU 2023-09 and ASU 2024-03/2025-01) on future disclosures and financial statements.

Key Dates

Recommendation

The company exhibits a mixed financial performance with an increased net loss and declining interest income, which are concerning. However, it also shows revenue growth in its core operations, strong liquidity with no long-term debt, and a significant cash balance. The full valuation allowance on deferred tax assets and anti-takeover provisions present long-term uncertainties and governance concerns. Given the small scale of operations, the reliance on a single large note receivable, and the stated strategy to seek new business, a 'hold' recommendation is appropriate for investors awaiting clearer signs of sustained profitability or strategic growth execution.

Keywords

New Concept Energy, GBR, 10-K, SEC Filing, Real Estate, Oil and Gas Management, Financial Results, Net Loss, Revenue, Interest Income, Corporate Governance, Risk Factors, Deferred Tax Assets, Related Party Transactions, NYSE American