New Concept Energy Reports Q2 2025 Financial Results with Net Loss of $18,000

New Concept Energy, Inc. reported its financial results for the second quarter of 2025, revealing a net loss of $18,000, a decline from a net income of $3,000 in the same period of 2024. For the three months ending June 30, 2025, the company generated total revenues of $40,000, which included $26,000 from rental income and $14,000 from management fees. This represents a 8% increase in revenue compared to $37,000 in the prior year. However, operating expenses rose to $100,000 from $90,000, primarily due to increased corporate general and administrative costs, which increased to $85,000 from $78,000 year-over-year.

For the first half of 2025, New Concept Energy reported a net loss of $38,000, compared to a net income of $5,000 for the same period in 2024. Total revenues for the six months ended June 30, 2025, were $78,000, up from $73,000 in the previous year. The increase in revenue was attributed to higher rental income and management fees. However, total operating expenses also increased to $201,000 from $181,000, reflecting ongoing investments in corporate operations.

The company’s balance sheet as of June 30, 2025, showed total assets of $4,574,000, a slight decrease from $4,594,000 at the end of 2024. Current assets were reported at $403,000, while current liabilities increased to $75,000 from $57,000. Stockholders' equity decreased to $4,499,000 from $4,537,000, primarily due to the net loss incurred during the period. The company continues to hold a note receivable from American Realty Investors, Inc. amounting to $3,542,000, which is due in September 2027.

In terms of operational developments, New Concept Energy continues to manage its real estate assets, which include approximately 190 acres of land in Parkersburg, West Virginia, with four structures totaling around 53,000 square feet. The company is actively evaluating new business opportunities to enhance income and cash flow. Despite the current losses, management remains focused on maintaining high occupancy rates and market rate charges in its properties. The company has not reported any significant changes in its employee headcount or market share.

Looking ahead, New Concept Energy's management has indicated that they are assessing various strategies to improve financial performance, including potential acquisitions and new product offerings. The company remains cautious about market conditions and the potential impact of interest rate fluctuations on its operations. As of the filing date, there were no significant subsequent events to report, and the company continues to monitor its financial position closely.