New Concept Energy, Inc. 2025 Annual Report: Key Highlights and Investor Insights

Ticker: GBR | Exchange: NYSE American

Year Ended: December 31, 2025

1. Company Overview

New Concept Energy, Inc. (“the Company”) is involved in leasing its office building in Parkersburg, West Virginia, and managing oil and gas operations it formerly owned, having sold its oil and gas assets in August 2020. A significant portion of cash flow and income comes from interest earned on notes receivable.

2. 2025 Financial Results

• Total Assets: \$4.49 million (down from \$4.55 million in 2024)
• Net Loss: \$(46,000) for 2025, compared to a net loss of \$(18,000) in 2024
• Operating Expenses: \$56,000 for real estate property (vs. \$48,000 in 2024)
• General & Administrative Expenses: \$364,000 (vs. \$335,000 in 2024)
• Interest Income: \$169,000 (down from \$213,000 in 2024), with the decline attributed to lower interest rates
• No Long-Term Debt: The Company reports no outstanding long-term debt as of December 31, 2025, eliminating interest rate risk exposure

3. Shareholder Information

• Shares Outstanding: 5,131,934 as of March 31, 2026
• Closing Price (March 23, 2026): \$0.94 per share
• Dividends: No dividends paid in 2024 or 2025. The Board of Directors retains all earnings to finance expansion and pay down debt. Future dividends are not anticipated unless financial circumstances change.
• Share Repurchases: No repurchase program is in effect. Occasional purchases of less than 100 shares from stockholders were made in past years to save commission costs, but none in 2024 or 2025.

4. Corporate Governance and Controls

• Internal Controls: The Company’s management, including the CEO and CFO, concluded that disclosure controls and procedures were effective as of December 31, 2025.
• No Material Weaknesses: There were no changes in internal control over financial reporting during 2025 that materially affected, or are reasonably likely to affect, the Company’s internal control over financial reporting.
• Auditor: Turner, Stone & Company, LLP, served as the Company’s auditor since 2024 and issued an unqualified opinion, stating the financial statements present fairly the financial position and results of operations.
• No Critical Audit Matters: The auditor reported no especially challenging or subjective matters for the 2025 audit.

5. Board Structure and Executive Compensation

• Directors: The Board includes Audit, Compensation, and Governance & Nominating Committees. Charters for these are available on the Company’s website.
• Executive Compensation: The Chairman, President & CFO received \$60,000 in 2024; no outstanding equity awards or incentive compensation plans are in place.
• Director Compensation: Non-employee directors receive \$2,500 per year plus \$2,000 per board meeting attended; employee directors serve without compensation.

6. Shareholder Protections and Potential Takeover Barriers

• The Company’s Articles of Incorporation contain anti-takeover provisions, including:
  • Requirement of an 80% vote to amend certain bylaws or articles provisions
  • Business combination “control act” requirements for any party owning 10% or more of shares
  • 80% shareholder threshold to call a special meeting
• These measures could limit or delay potential takeover attempts, possibly depriving shareholders of takeover premiums.

7. Other Noteworthy Items

• Legal Proceedings: The Company is not involved in any material legal proceedings.
• Employee Count: Only two employees as of year-end 2025; all other work is outsourced.
• Major Shareholder: Realty Advisors, Inc. owns 400,000 shares (7.79% of outstanding shares).
• Related Party Transactions: Business with Pillar for payroll, insurance, and admin services; all such transactions are board-approved.
• Public Filings & Governance Documents: Available free of charge on the Company’s website.

8. Risks and Forward-Looking Statements

• Investors are cautioned that forward-looking statements are subject to risks, including those described in the “Risk Factors” section (notably, anti-takeover provisions and possible impact on control changes).
• Management is not aware of any regulatory non-compliance with material adverse effects.

Potential Price-Sensitive Information

• Net Loss Widened: The Company’s net loss increased from \$18,000 in 2024 to \$46,000 in 2025, mainly due to higher operating and administrative expenses and lower interest income.
• No Debt: The Company has no long-term debt, which may appeal to investors seeking a low-leverage position but also suggests limited leverage for growth.
• No Dividends or Buybacks: The continued absence of dividends or share repurchases may disappoint income-focused investors.
• Anti-Takeover Measures: The strong anti-takeover provisions may negatively affect the stock’s attractiveness to activists or acquirers but could offer stability for long-term holders.

Summary Table: Key 2025 Metrics

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Investors should conduct their own due diligence and consult their financial advisor before making investment decisions. The information is based on the Company’s 2025 Annual Report and may be subject to change. Forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those anticipated.

View New Concept Energy, Inc. Historical chart here