v3.26.1
Note 4 - Segment Reporting
 3 Months Ended
Mar. 31, 2026
Notes to Financial Statements  
Segment Reporting [Text Block]

Note 4:

Segment Reporting

 

The Company’s operations are classified into three principal operating segments that are all located in the United States: oil and gas, timber and surface. The Company’s reportable business segments are strategic business units that offer income from different products. They are managed separately due to the unique aspects of each area.

 

The Company’s President and Treasurer is the chief operating decision maker (“CODM”) and manages and allocates resources between the Oil and Gas, Timber, and Surface segments. Consistent with this decision-making process, the CODM uses financial information disaggregated between the Oil and Gas, Timber, and Surface segment for purposes of evaluating performance, forecasting future period financial results, and allocating resources. The CODM evaluates segment business performance on a quarterly basis based on gross profit.

 

The tables below present financial information for the Company’s three operating business segments:

 

   

Three Months Ended

March 31,

   

Year Ended

December 31,

 
   

2026

    

2025

  

Identifiable Assets, net of accumulated depreciation

                

Timber

   $ 528,520       528,599  

General corporate assets

     21,787,278       21,757,169  

Total

     22,315,798       22,285,768  
                 

Depreciation and depletion

                

Timber

   $ 79     $ 126  

General corporate assets

     438       3,109  

Total

   $ 517     $ 3,235  

 

 

   

Three Months Ended March 31, 2026

  
   

Oil and Gas

    

Timber

    

Surface

    

Consolidated

  

Revenues

     9,292       2,667       158,701       170,660  

Cost of Goods Sold

     2,713       79       -       2,792  

Gross Profit

     6,579       2,588       158,701       167,868  

 

   

Three Months Ended March 31, 2025

  
   

Oil and Gas

    

Timber

    

Surface

    

Consolidated

  

Revenues

     268,508       -       79,676       348,184  

Cost of Goods Sold

     20,710       3,774       -       24,484  

Gross Profit

     247,798       (3,774 )     79,676       323,700  

 

 

Reconciliation

  

Three Months

Ended March 31,

2026

    

Three Months

Ended March 31,

2025

  

Total Gross Profit

     167,868       323,700  

Less:

                

General & administrative expense

     242,269       210,680  

Depreciation Expense

     438       870  

Income (loss) from operations

     (74,839 )     112,150  
                 

Interest Income

     134,377       93,597  

Miscellaneous Income

     9,018       -  

Income before income taxes

     68,556       205,747  

 

There are no intersegment sales reported in the accompanying statements of operations. The accounting policies of the segments are the same as those described in the summary of significant accounting policies in the Company’s Form 10-K for the year ended December 31, 2025. The Company evaluates performance based on income or loss from operations before income taxes excluding any nonrecurring gains and losses. Income before income tax represents net revenues less costs and expenses less other income and expenses of a general corporate nature. Identifiable assets by segment are those assets used solely in the Company's operations within that segment.