v3.26.1
Note 4 - Segment Reporting
 6 Months Ended
Jun. 30, 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 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:

 

   

June 30,

   

December 31,

  
   

2026

    

2025

  

Identifiable Assets, net of accumulated depreciation

                

Timber

   $ 528,520       528,599  

General corporate assets

     21,345,908       21,757,169  

Total

     21,874,428       22,285,768  
                 

Depreciation and depletion

                

Timber

   $ 79     $ 126  

General corporate assets

     876       3,109  

Total

   $ 955     $ 3,235  

 

 

   

Three Months Ended June 30, 2026

  
   

Oil and Gas

    

Timber

    

Surface

    

Consolidated

  

Revenues

     37,553       -       130,761       168,314  

Cost of Goods Sold

     2,556       -       51       2,607  

Gross Profit

     34,997       -       130,710       165,707  

 

   

Three Months Ended June 30, 2025

  
   

Oil and Gas

    

Timber

    

Surface

    

Consolidated

  

Revenues

     57,488       -       78,448       135,936  

Cost of Goods Sold

     12,893       972       -       13,865  

Gross Profit

     44,595       (972 )     78,448       122,071  

 

   

Six Months Ended June 30, 2026

  
   

Oil and Gas

    

Timber

    

Surface

    

Consolidated

  

Revenues

     46,845       2,667       289,462       338,974  

Cost of Goods Sold

     5,269       79       51       5,399  

Gross Profit

     41,576       2,588       289,411       333,575  

 

   

Six Months Ended June 30, 2025

  
   

Oil and Gas

    

Timber

    

Surface

    

Consolidated

  

Revenues

     325,996       -       158,123       484,119  

Cost of Goods Sold

     33,603       4,745       -       38,348  

Gross Profit

     292,393       (4,745 )     158,123       445,771  

 

 

Reconciliation

  

Three Months

Ended
June 30,
2026

    

Three Months

Ended
June 30,
2025

    

Six Months Ended
June 30,
2026

    

Six Months Ended
June 30,
2025

  

Total Gross Profit

     165,707       122,071       333,575       445,771  

Less:

                                

General & administrative expense

     142,218       150,795       384,487       361,476  

Depreciation Expense

     438       817       876       1,687  

Gain on Sale of land

     -       (189,210 )     -       (189,210 )

Income (loss) from operations

     23,051       159,669       (51,788 )     271,818  
                                 

Less:

                                

Interest Income

     130,232       74,481       264,609       168,078  

Miscellaneous Income

     -       67       9,018       68  

Income before income taxes

     153,283       234,217       221,839       439,964  

 

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.