10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2018

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

Commission File Number 1-31905

CKX Lands, Inc.

(Exact name of registrant as specified in its charter)

Louisiana		72-0144530
(State or other jurisdiction of incorporation or organization)		(I.R.S. Employer Identification No.)
1508 Hodges Street
Lake Charles, LA		70601
(Address of principal executive offices)		(Zip Code)
	(337) 493-2399
	(Registrant’s telephone number)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.     Yes  ☒     No  ☐

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).     Yes  ☒     No  ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of “large accelerated filer”, “accelerated filer”, “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer	☐	Accelerated filer	☐
Non-accelerated filer	☐	Smaller reporting company	☒
		Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).     Yes ☐     No  ☒

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date: 1,942,495

CKX Lands, Inc.

Form 10-Q

For the Quarter ended June 30, 2018

Table of Contents

		Page
Part I.  Financial Information
Item  1.	Financial Statements
a.	Balance Sheets as of June 30, 2018 and December 31, 2017 (Unaudited)	1
b.	Statements of Income for the quarters and six months ended June 30, 2018 and 2017 (Unaudited)	2
c.	Statements of Changes in Stockholders’ Equity for the six months ended June 30, 2018 and 2017 (Unaudited)	3
d.	Statements of Cash Flows for the six months ended June 30, 2018 and 2017 (Unaudited)	4
e.	Notes to Financial Statements as of June 30, 2018 (Unaudited)	5-7
Item  2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	8-10
Item  4.	Controls and Procedures	10
Part II. Other Information
Item  6.	Exhibits	11
	Signature	12

Part I – Financial Information

Item 1. FINANCIAL STATEMENTS

CKX Lands, Inc.

Balance Sheets

June 30, 2018 and December 31, 2017

(Unaudited)

	2018		2017
Assets
Current Assets
Cash	$	795,332	$	1,618,583
Cash-Restricted		873,355		33,821
Certificates of deposit		2,140,000		2,662,890
Accounts receivable		93,177		113,067
Prepaid expense and other assets		114,495		50,354
Total current assets		4,016,359		4,478,715
Non-current Assets
Certificate of deposit		2,185,000		950,000
Property and equipment:
Land		7,051,412		7,147,100
Timber		2,134,230		2,119,180
Building and equipment less accumulated depreciation of $74,601 and $74,565, respectively		33,746		28,742
Total property and equipment, net		9,219,388		9,295,022
Total assets	$	15,420,747	$	14,723,737
Liabilities and Stockholders’ Equity
Current Liabilities
Trade payables and accrued expenses	$	140,735	$	207,166
Income tax payable		20,821		13,346
Total current liabilities		161,556		220,512
Non-current Liabilities
Deferred income tax payable		187,664		187,664
Total liabilities		349,220		408,176
Stockholders’ Equity
Common stock, no par value: 3,000,000 shares authorized;1,942,495 and 1,942,495 shares issued, respectively		59,335		59,335
Retained earnings		15,012,192		14,256,226
Total stockholders’ equity		15,071,527		14,315,561
Total liabilities and stockholders’ equity	$	15,420,747	$	14,723,737

The accompanying notes are an integral part of these unaudited financial statements.

1

CKX Lands, Inc.

Statements of Income

Quarters and Six Months Ended June 30, 2018 and 2017

 (Unaudited)

	Quarter Ended June 30,					Six Months Ended June 30,
	2018			2017		2018			2017
Revenues:
Oil and gas	$	161,678		$	151,693	$	286,255		$	333,362
Timber		176,559			8,966		355,008			8,966
Surface		52,493			198,013		87,006			215,115
Surface – related party		3,303			38,333		12,459			38,333
Total revenues		394,033			397,005		740,728			595,776
Costs, Expenses and (Gains):
Oil and gas		13,287			20,083		29,943			33,049
Timber		14,784			6,107		35,378			6,107
Surface		7,513			15,237		14,503			24,848
General and administrative		133,748			100,590		266,309			250,233
Depreciation		234			233		467			467
Gain on sale of land and equipment		(3,334	)		--		(881,654	)		(2,891	)
Total cost, expenses and (gains)		166,232			142,250		(535,054	)		311,813
Income from operations		227,801			254,755		1,275,782			283,963
Other Income:
Interest income		12,954			10,363		25,876			20,575
Net other income		12,954			10,363		25,876			20,575
Income before income taxes		240,755			265,118		1,301,658			304,538
Federal and State Income Taxes:
Current		89,051			51,638		312,593			46,438
Deferred		--			--		--			--
Total income taxes		89,051			51,638		312,593			46,438
Net Income	$	151,704		$	213,480	$	989,065		$	258,100
Per Common Stock, basic and diluted
Net Income	$	0.08		$	0.11	$	0.51		$	0.13
Dividends	$	0.00		$	0.00	$	0.12		$	0.10
Weighted Average Common Shares Outstanding, basic and diluted		1,942,495			1,942,495		1,942,495			1,942,495

The accompanying notes are an integral part of these unaudited financial statements.

2

CKX Lands, Inc.

Statements of Changes in Stockholders’ Equity

Six Months Ended June 30, 2018 and 2017

(Unaudited)

	Total			Retained Earnings			Capital Stock Issued
Six Months Ending June 30, 2018
December 31, 2017 Balance	$	14,315,561		$	14,256,226		$	59,335
Net income		989,065			989,065			--
Dividends declared		(233,099	)		(233,099	)		--
June 30, 2018 Balance	$	15,071,527		$	15,012,192		$	59,335
Six Months Ending June 30, 2017
December 31, 2016 Balance	$	13,986,948		$	13,927,613		$	59,335
Net income		258,100			258,100			--
Dividends declared		(194,250	)		(194,250	)		--
June 30, 2017 Balance	$	14,050,798		$	13,991,463		$	59,335

The accompanying notes are an integral part of these unaudited financial statements.

3

CKX Lands, Inc.

Statements of Cash Flows

Six Months Ended June 30, 2018 and 2017

(Unaudited)

	2018			2017
Cash Flows Provided From Operating Activities:
Net Income	$	989,065		$	258,100
Less non-cash and non-operating (income) expenses included in net income:
Depreciation, depletion and amortization		15,180			467
Gain on sale of land and equipment		(881,654	)		(2,891	)
Change in operating assets and liabilities:
Increase in current assets		(58,503	)		(104,871	)
Increase in current liabilities		(58,956	)		11,278
Net cash provided from operating activities		5,132			162,083
Cash Flows Provided From (Used In) Investing Activities:
Certificates of deposit:
Purchases		(2,905,000	)		(1,212,890	)
Maturity proceeds		2,192,890			1,690,000
Land, equipment, and other assets:
Purchases		(10,371	)		--
Sales proceeds		996,494			3,390
Timber:
Purchases		(29,763	)		(11,040	)
Net cash provided from investing activities		244,250			469,460
Cash Flows Used In Financing Activities:
Dividends paid		(233,099	)		(194,250	)
Net cash used in financing activities		(233,099	)		(194,250	)
Net increase in cash and cash-restricted		16,283			437,293
Cash and cash-restricted:
Beginning		1,652,404			1,081,188
Ending	$	1,668,687		$	1,518,481
Supplemental disclosures of cash flow information:
Cash payments for:
Interest	$	--		$	--
Income taxes	$	308,387		$	55,000

The accompanying notes are an integral part of these unaudited financial statements.

4

CKX Lands, Inc.

Notes to Financial Statements

June 30, 2018

(Unaudited)

Note 1.      Basis of Presentation

The accompanying unaudited financial statements of CKX Lands, Inc. (“Company”) have been prepared in accordance with United States generally accepted accounting principles for interim financial information. They do not include all information and footnotes required by United States generally accepted accounting principles for complete financial statements. Except as described herein, there has been no material change in the information disclosed in the notes to the financial statements included in our financial statements as of and for the year ended December 31, 2017. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included in the accompanying financial statements. Certain amounts have been reclassified to conform to the current period’s presentation, including oil and gas, timber, and surface, from general and administrative costs and expenses on the statements of income.

In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606), which supersedes most current revenue recognition guidance, including industry-specific guidance. Subsequently, the FASB has issued updates which provide additional implementation guidance. The new guidance requires companies to recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration it expects to be entitled to in exchange for those goods or services. We adopted this guidance in the first quarter of 2018 applying the modified retrospective approach. We have completed our review of all revenue sources in scope for the new standard, and stumpage agreements are within this scope. In accordance with the new standard, the basis for determining revenue and expenses allocable to stumpage agreements (timber revenue) was not modified. There was no net cumulative effect adjustment for this change as of January 1, 2018.

In November 2016, the FASB issued ASU 2016-18, Statement of Cash Flows (Topic 230), which provides guidance requiring companies to report net cash provided or used by operating, investing and financing activities and the net effect of those flows on the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents during the period.  The statement of cash flows shall report that information in a manner that reconciles beginning and ending totals of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. The companies shall also disclose information about the nature of the restrictions on restricted cash and restricted cash equivalents.  We adopted this guidance in the first quarter of 2018.  In accordance with the new standard, no modification to our presentation for restricted cash was made. 

Interim results are not necessarily indicative of results for a full year. These financial statements and accompanying notes should be read in conjunction with the Company’s Form 10-K for the year ended December 31, 2017 and Form 10-Q for the quarterly period ended June 30, 2018.

Note 2.      Income Taxes

In accordance with generally accepted accounting principles, the Company has analyzed its filing positions in federal and state income tax returns that remain subject to examination, generally 3 years after filing. The Company believes that all filing positions are highly certain and that all income tax filing positions and deductions would be sustained upon a taxing jurisdiction’s audit. Therefore, no reserve for uncertain tax positions is required. No interest or penalties have been levied against the Company and none are anticipated.

Note 3.      Company Operations

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.

5

CKX Lands, Inc.

Notes to Financial Statements

June 30, 2018

(Unaudited)

Following is a summary of segmented operations information for the six months ended June 30, 2018 and 2017, respectively:

	2018		2017
Revenues
Oil and Gas	$	286,255	$	333,362
Timber		355,008		8,966
Surface		99,465		253,448
Total		740,728		595,776
Cost and Expenses
Oil and Gas		29,943		33,049
Timber		35,378		6,107
Surface		14,506		24,848
Total		79,824		64,004
Income from Operations
Oil and Gas		256,312		300,313
Timber		319,630		2,859
Surface		84,962		228,600
Total		660,904		531,772
Other Income (Expense) before Income Taxes		328,161		(273,672	)
Income before Income Taxes		989,065		258,100
Identifiable Assets, net of accumulated depreciation and depletion
Oil and Gas		--		--
Timber		2,134,230		2,119,180
Surface		--		--
General Corporate Assets		13,286,517		12,604,557
Total		15,420,747		14,723,737
Capital Expenditures
Oil and Gas		--		--
Timber		29,763		11,040
Surface		--		--
General Corporate Assets		10,371		--
Total		40,134		11,040
Depreciation and Depletion
Oil and Gas		--		--
Timber		14,713		--
Surface		--		--
General Corporate Assets		467		467
Total	$	15,180	$	467

There are no intersegment sales reported in the accompanying income statements. 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, 2017. The Company evaluates performance based on income or loss from operations before income taxes excluding any nonrecurring gains and losses on securities held available-for-sale. 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.

6

CKX Lands, Inc.

Notes to Financial Statements

June 30, 2018

(Unaudited)

Note 3.      Company Operations (continued)

Revenue from customers representing 5% or more of total revenue for the six months ended June 30, 2018 and 2017, respectively are:

Count	2018		2017
1	$	250,334	$	179,292
2		77,137		80,210
3		73,110		54,154
4		47,567		42,513
5		38,333		38,333

Note 4.       Cash – Restricted

During the first quarter of 2018, the company closed on the sale of four parcels of land all of which were structured as a “deferred exchange using a qualified intermediary” pursuant to Paragraph 1031 of the Internal Revenue Code (1031 Exchange) for income tax purposes. The net proceeds from these transactions of $993,160 of which $873,355 remained in the Cash-Restricted amount at June 30, 2018. Subsequent to March 31, 2018, identified properties for the purposes of the 1031 Exchange were deemed not acceptable after preliminary due diligence. The 1031 Exchange will not be completed. The related tax expense on the gain from these sales has been accrued at June 30, 2018.

The following table provides a reconciliation of cash and cash-restricted reported within the balance sheet that sum to the total of the same such amounts shown in the statement of cash flows.

	June 30, 2018
Cash	$	795,332
Cash-restricted		873,355
Cash and cash-restricted	$	1,668,687

Note 5.      Dividend Declaration

On March 22, 2018, the Company declared a dividend of twelve ($0.12) cents per common share payable to shareholders of record date as of April 5, 2018 and payment date of April 12, 2018.

Note 6.      Related Party Transactions

On April 17, 2017, the Company entered into an option to lease agreement (“OTL”) with Stream Wetlands Services, LLC (“Stream”). Under the terms of the OTL, Stream paid the Company $38,333 during the quarter ended March 31, 2018 for an extension of an exclusive right to evaluate and market certain lands owned by the Company to their client for beneficial use purposes to compensate for wetlands impact through February 28, 2019. Stream may extend the OTL for up to two (2) successive periods of twelve (12) months. If Stream is chosen to perform their client’s project, the Company has agreed to put forth its best efforts to negotiate and enter into a mutually acceptable lease form. Due to the uncertainty of the contract award and project scope, we are unable to estimate the potential financial benefit, if any, to the Company. William Gray Stream, a prior Company Director, is the president of Stream Wetlands Services, LLC.

7

Item 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Results of Operations

Revenue

Comparison of Revenues for the three months ended June 30, 2018 and 2017 follows:

	2018		2017		$ Change			% Change
Oil and Gas		286,255		333,362		(47,107	)		(14.13	)%
Timber		355,008		8,966		346,042			3,859.49	%
Surface		99,465		253,448		(153,983	)		(60.76	)%
Total		740,728		595,776		144,952			24.33	%

Oil and Gas

CKX leases its property to oil and gas operators and collects income through its land ownership in the form of oil and gas royalties and lease rentals and geophysical revenues. A breakdown of oil and gas revenues follows:

	2018		2017		$ Change			% Change
Oil		230,249		245,441		(15,192	)		(6.19	)%
Gas		51,520		80,254		(28,734	)		(35.80	)%
Lease and Geophysical		4,486		7,667		(3,181	)		(41.49	)%
Total		286,255		333,362		(47,107	)		(14.13	)%

CKX received oil and/or gas revenues from 87 and 95 wells during the three-month period ended June 30, 2018 and 2017, respectively.

The following schedule summarizes barrels and MCF produced and average price per barrel and per MCF.

	2018		2017
Net oil produced (Bbl)(2)		3,247		4,305
Average oil sales price (per Bbl)(1,2)	$	63.18	$	50.40
Net gas produced (MCF)		15,248		23,746
Average gas sales price (per MCF)(1)	$	3.38	$	3.38

Notes to above schedule:

⁽¹⁾ Before deduction of production costs and severance taxes.

⁽²⁾ Excludes plant products.

Oil and Gas revenues decreased by $43,926 from 2017 revenues. As indicated from the schedule above the net decrease was due to increases in the average price per barrel and decreases in barrels of oil produced, MCF of gas produced, and the average price per MCF.

8

Item 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (continued)

Lease and geophysical revenues were $4,486 in 2018 and $7,667 in 2017 amounts. These revenues are dependent on oil and gas producers’ activities, are not predictable and can vary significantly from year to year.

Management believes oil and gas activity is driven by the current and forecasted commodity prices, demand for oil and gas, and upstream and downstream industry activity. Based on available public information, management believes that oil and gas activity which includes oil and gas production as well as lease rentals will be comparable to 2017 annual reported amounts.

During the first six months of 2018, the Company received $355,008 in timber revenues. In 2017, the Company received 8,966 in timber revenues. We believe the increase in revenues is due to our continued marketing of our timber and securing stumpage agreements over the last couple of years and dryer weather. We believe the market will continue to be challenging during 2018.

Surface revenue decreased $153,983 from 2017 revenues primarily due to no revenue related to pipeline right of way agreements were received in 2018.  As previously noted by management, pipeline, utility and other right of ways are not unusual to the Company however, these types of revenue are not predictable and can vary significantly from year to year.

Costs and Expenses

Timber costs increased by $29,271 in 2018 due to the increased timbers revenue occurring in the first six months of 2018.

Surface costs decreased by $10,345 in 2018 due to lower repair and maintenance cost and no legal contract review.

General and administrative expenses increased by $16,076 primarily due to increased officer salaries for land disposition administration, increased transfer agent fees and public company fees, increased general and administrative expenses and decreases in legal fees related to SEC reporting and director fees.

Financial Condition

Current assets totaled $4,016,359 and current liabilities equaled $161,556 at June 30, 2018.

In the opinion of management, cash and cash equivalents, and certificates of deposit are adequate for projected operations and possible land acquisitions.

The Company declared and paid twelve cents per common share dividend during the quarter ended March 31, 2018. During the first quarter of each future calendar year, the Company anticipates determining if a dividend will be declared. In determining whether a dividend will be declared, the board of directors will take into account the Company’s prior fiscal year’s cash flows from operations and current economic conditions among other information deemed relevant.

Issues and Uncertainties

This quarterly report contains forward-looking statements. These statements are based on current expectations and assumptions that are subject to risks and uncertainties. Actual results could differ materially because of issues and uncertainties such as those discussed below, which, among others, should be considered in evaluating the Company’s financial outlook.

9

Item 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (continued)

The Company’s business and operations are subject to certain risks and uncertainties, including:

Reliance upon Oil and Gas Discoveries

The Company’s most significant risk is its reliance upon others to perform exploration and development for oil and gas on its land. Future income is dependent on others finding new production on the Company’s land to replace present production as it is depleted. Oil and gas prices as well as new technology will affect the possibility of new discoveries.

Commodity Prices

Most of the Company’s operating income comes from the sale of commodities produced from its lands: oil and gas, and timber. Fluctuations in these commodity prices will directly impact net income.

Natural Disasters

The Company has approximately 10,612 net acres of timberland (pine and hardwood) in various stages of growth or age classes. A typical pine timber stand will be harvested after 30 to 35 years of growth with some thinning occurring during this time. A hardwood stand will be harvested after 45 to 50 years of growth. A natural disaster can have a material adverse effect on timber growth, reducing its value. Natural disasters could include a hurricane, tornado, high winds, heavy rains and flooding, and/or fire cause by lightning.

Item 3. Not applicable.

Item 4. CONTROLS AND PROCEDURES

Evaluation of Disclosure Controls and Procedures

The Company has evaluated the effectiveness of the design and operation of its disclosure controls and procedures pursuant to Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934 as of the period covered by this report. Based on the evaluation, performed under the supervision and with the participation of the Company’s management, including the President, concluded that the Company’s disclosure controls and procedures were effective as of the end of the period covered by the report.

Changes in Internal Control Over Financial Reporting

There were no significant changes with respect to the Company’s internal control over financial reporting or in other factors that materially affected, or are reasonably likely to materially affect, our internal control over financial reporting during the quarter covered by this report.

10

Part II. Other Information

Item 1 – 5. Not Applicable

Item 6. EXHIBITS

3.1 Restated/Articles of Incorporation of the Registrant are incorporated by reference to Exhibit (3)-1 to Form 10 filed April 29, 1981.

3.2 Amendment to Articles of Incorporation of the Registrant is incorporated by reference to Exhibit (3.2) to Form 10-K for year ended December 31, 2003.

3.3 By-Laws of the Registrant are incorporated by reference to Exhibit (3.3) to Form 10-Q for the quarterly period ended June 30, 2013.

10 Contract to Purchase and Sell approximately 3,495 acres in Cameron Parish, Louisiana effective July 3, 2007 is incorporated by reference to Exhibit (10) to Form 10-QSB filed August 13, 2007.

10.1 Agreement to Purchase and Sell Real Estate of approximately 880 acres in Calcasieu Parish, Louisiana effective May 11, 2016 is incorporated by reference to Form 10-Q filed August 8, 2016.

10.2 Agreement to Purchase and Sell Real Estate of commercial real estate in Sulphur, Louisiana effective July 13, 2017 is incorporated by reference to Form 10-Q filed August 3, 2017.

31 Certification of President and Treasurer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 filed herewith.

32 Certification of President and Treasurer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 filed herewith.

101.INS** XBRL Instance

101.SCH** XBRL Taxonomy Extension Schema

101.CAL** XBRL Taxonomy Extension Calculation

101.DEF** XBRL Taxonomy Extension Definition

101.LAB** XBRL Taxonomy Extension Labels

101.PRE** XBRL Taxonomy Extension Presentation

**XBRL information is furnished and not filed or a part of a registration statement or prospectus for purposes of sections 11 or 12 of the Securities Act of 1933, as amended, is deemed not filed for purposes of section 18 of the Securities Exchange Act of 1934, as amended, and otherwise is not subject to liability under these sections.

************************************

11

Signature

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

	CKX Lands, Inc.
Date: August 2, 2018	/s/ Lee Boyer
	Lee Boyer
	President

12

EX-31

Exhibit 31

CERTIFICATION OF CHIEF EXECUTIVE AND FINANCIAL OFFICER PURSUANT TO RULE 13A-14(A) AND RULE 15D-14(A) OF THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED

I, Lee Boyer, certify that:

1. I have reviewed CKX Lands, Inc. (the “registrant”) Form 10-Q for the quarter ended June 30, 2018;

2 Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. I am responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under my supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to me by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under my supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report my conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. I have disclosed, based on my most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

August 2, 2018	/s/Lee Boyer
	Lee Boyer
	President

EX-32

Exhibit 32

Certification Pursuant to 18 U.S.C. Sec. 1350

(Section 906 of the Sarbanes – Oxley Act of 2002)

In connection with the filing by CKX Lands, Inc. (the “Company”) of this Form 10-Q for the quarter ending June 30, 2018 (the “Report”), the undersigned hereby certifies, to the best of my knowledge, that:

1. The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

2. The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

August 2, 2018	/s/Lee Boyer
	Lee Boyer
	President

XML

Document And Entity Information - shares	6 Months Ended
	Jun. 30, 2018	Aug. 02, 2018
Document Information [Line Items]
Entity Registrant Name	CKX LANDS, INC.
Entity Central Index Key	0000352955
Trading Symbol	ckx
Current Fiscal Year End Date	--12-31
Entity Filer Category	Smaller Reporting Company
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Well-known Seasoned Issuer	No
Entity Common Stock, Shares Outstanding (in shares)		1,942,495
Document Type	10-Q
Document Period End Date	Jun. 30, 2018
Document Fiscal Year Focus	2018
Document Fiscal Period Focus	Q2
Amendment Flag	false

XML

Balance Sheets (Current Period Unaudited) - USD ($)	Jun. 30, 2018	Dec. 31, 2017
Current Assets
Cash	$ 795,332	$ 1,618,583
Cash-Restricted	873,355	33,821
Certificates of deposit	2,140,000	2,662,890
Accounts receivable	93,177	113,067
Prepaid expense and other assets	114,495	50,354
Total current assets	4,016,359	4,478,715
Non-current Assets
Certificates of deposit	2,185,000	950,000
Property and equipment:
Land	7,051,412	7,147,100
Property, plant, and equipment, net	9,219,388	9,295,022
Total assets	15,420,747	14,723,737
Current Liabilities
Trade payables and accrued expenses	140,735	207,166
Income tax payable	20,821	13,346
Total current liabilities	161,556	220,512
Non-current Liabilities
Deferred income tax payable	187,664	187,664
Total liabilities	349,220	408,176
Stockholders’ Equity
Common stock, no par value: 3,000,000 shares authorized;1,942,495 and 1,942,495 shares issued, respectively	59,335	59,335
Retained earnings	15,012,192	14,256,226
Total stockholders’ equity	15,071,527	14,315,561
Total liabilities and stockholders’ equity	15,420,747	14,723,737
Timber Properties [Member]
Property and equipment:
Property, plant, and equipment, net	2,134,230	2,119,180
Building and Equipment [Member]
Property and equipment:
Property, plant, and equipment, net	$ 33,746	$ 28,742

XML

Balance Sheets (Current Period Unaudited) (Parentheticals) - USD ($) $ / shares in Thousands	Jun. 30, 2018	Dec. 31, 2017
Common stock, par value (in dollars per share)	$ 0	$ 0
Common stock, shares authorized (in shares)	3,000,000	3,000,000
Common stock, shares issued (in shares)	1,942,495	1,942,495
Building and Equipment [Member]
Accumulated depreciation	$ 74,601	$ 74,565

XML

Statements of Income (Unaudited) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Revenues:
Revenue by Customer	$ 394,033	$ 397,005	$ 740,728	$ 595,776
Costs, Expenses and (Gains):
General and administrative	133,748	100,590	266,309	250,233
Depreciation	234	233	467	467
Gain on sale of land and equipment	(3,334)		(881,654)	(2,891)
Total cost, expenses and (gains)	166,232	142,250	(535,054)	311,813
Income from operations	227,801	254,755	1,275,782	283,963
Other Income:
Interest income	12,954	10,363	25,876	20,575
Net other income	12,954	10,363	25,876	20,575
Income before income taxes	240,755	265,118	1,301,658	304,538
Federal and State Income Taxes:
Current	89,051	51,638	312,593	46,438
Deferred
Total income taxes	89,051	51,638	312,593	46,438
Net Income	$ 151,704	$ 213,480	$ 989,065	$ 258,100
Per Common Stock, basic and diluted
Net Income (in dollars per share)	$ 0.08	$ 0.11	$ 0.51	$ 0.13
Dividends (in dollars per share)	$ 0	$ 0	$ 0.12	$ 0.10
Weighted Average Common Shares Outstanding, basic and diluted (in shares)	1,942,495	1,942,495	1,942,495	1,942,495
Oil and Gas [Member]
Revenues:
Revenues from customers	$ 161,678	$ 151,693	$ 286,255	$ 333,362
Costs, Expenses and (Gains):
Cost of goods and services sold	13,287	20,083	29,943	33,049
Timber [Member]
Revenues:
Revenues from customers	176,559	8,966	355,008	8,966
Costs, Expenses and (Gains):
Cost of goods and services sold	14,784	6,107	35,378	6,107
Surface Leases, Unrelated Parties [Member]
Revenues:
Revenues, leases	52,493	198,013	87,006	215,115
Surface Leases, Related Parties [Member]
Revenues:
Revenues, leases	3,303	38,333	12,459	38,333
Surface Leases [Member]
Costs, Expenses and (Gains):
Cost of goods and services sold	$ 7,513	$ 15,237	$ 14,503	$ 24,848

XML

Statements of Changes in Stockholders' Equity (Unaudited) - USD ($)	Retained Earnings [Member]	Common Stock [Member]	Total
Balance at Dec. 31, 2016	$ 13,927,613	$ 59,335	$ 13,986,948
Net income	258,100		258,100
Dividends declared	(194,250)		(194,250)
Balance at Jun. 30, 2017	13,991,463	59,335	14,050,798
Balance at Dec. 31, 2017	14,256,226	59,335	14,315,561
Net income	989,065		989,065
Dividends declared	(233,099)		(233,099)
Balance at Jun. 30, 2018	$ 15,012,192	$ 59,335	$ 15,071,527

XML

Statements of Cash Flows (Unaudited) - USD ($)	6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017
Cash Flows Provided From Operating Activities:
Net Income	$ 989,065	$ 258,100
Less non-cash and non-operating (income) expenses included in net income:
Depreciation, depletion and amortization	15,180	467
Gain on sale of land and equipment	(881,654)	(2,891)
Change in operating assets and liabilities:
Increase in current assets	(58,503)	(104,871)
Increase in current liabilities	(58,956)	11,278
Net cash provided from operating activities	5,132	162,083
Cash Flows Provided From (Used In) Investing Activities:
Purchases, certificates of deposit	(2,905,000)	(1,212,890)
Maturity proceeds	2,192,890	1,690,000
Purchases, land, timber, equipment, and other assets	(10,371)
Sales proceeds	996,494	3,390
Purchases, timber	(29,763)	(11,040)
Net cash provided from investing activities	244,250	469,460
Cash Flows Used In Financing Activities:
Dividends paid	(233,099)	(194,250)
Net cash used in financing activities	(233,099)	(194,250)
Net increase in cash and cash-restricted	16,283	437,293
Beginning	1,652,404	1,081,188
Ending	1,668,687	1,518,481
Supplemental disclosures of cash flow information:
Interest
Income taxes	$ 308,387	$ 55,000

XML

Note 1 - Basis of Presentation

6 Months Ended

Jun. 30, 2018

Notes to Financial Statements

Organization, Consolidation and Presentation of Financial Statements Disclosure and Significant Accounting Policies [Text Block]

Note

1.

      Basis of Presentation

The accompanying unaudited financial statements of CKX Lands, Inc. (“Company”) have been prepared in accordance with United States generally accepted accounting principles for interim financial information. They do

not

include all information and footnotes required by United States generally accepted accounting principles for complete financial statements. Except as described herein, there has been

no

material change in the information disclosed in the notes to the financial statements included in our financial statements as of and for the year ended

December 31, 2017.

In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included in the accompanying financial statements. Certain amounts have been reclassified to conform to the current period’s presentation, including oil and gas, timber, and surface, from general and administrative costs and expenses on the statements of income.

In

May 2014,

the FASB issued ASU

2014

-

09,

Revenue from Contracts with Customers

 

(Topic

606

),

 which supersedes most current revenue recognition guidance, including industry-specific guidance. Subsequently, the FASB has issued updates which provide additional implementation guidance. The new guidance requires companies to recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration it expects to be entitled to in exchange for those goods or services. We adopted this guidance in the

first

quarter of

2018

applying the modified retrospective approach. We have completed our review of all revenue sources in scope for the new standard, and stumpage agreements are within this scope. In accordance with the new standard, the basis for determining revenue and expenses allocable to stumpage agreements (timber revenue) was

not

modified. There was

no

net cumulative effect adjustment for this change as of

January 1, 2018.

In

November 2016,

the FASB issued ASU

2016

-

18,

Statement of Cash Flows (Topic

230

),

which provides guidance requiring companies to report net cash provided or used by operating, investing and financing activities and the net effect of those flows on the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents during the period.  The statement of cash flows shall report that information in a manner that reconciles beginning and ending totals of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. The companies shall also disclose information about the nature of the restrictions on restricted cash and restricted cash equivalents.  We adopted this guidance in the

first

quarter of

2018.

  In accordance with the new standard,

no

modification to our presentation for restricted cash was made. 

Interim results are

not

necessarily indicative of results for a full year. These financial statements and accompanying notes should be read in conjunction with the Company’s Form

10

-K for the year ended

December 31, 2017

and Form

10

-Q for the quarterly period ended

June 30, 2018.

XML

Note 2 - Income Taxes

6 Months Ended

Jun. 30, 2018

Notes to Financial Statements

Income Tax Disclosure [Text Block]

Note

2.

      Income Taxes

In accordance with generally accepted accounting principles, the Company has analyzed its filing positions in federal and state income tax returns that remain subject to examination, generally

3

years after filing. The Company believes that all filing positions are highly certain and that all income tax filing positions and deductions would be sustained upon a taxing jurisdiction’s audit. Therefore,

no

reserve for uncertain tax positions is required.

No

interest or penalties have been levied against the Company and

none

are anticipated.

XML

Note 3 - Company Operations

6 Months Ended

Jun. 30, 2018

Notes to Financial Statements

Segment Reporting Disclosure [Text Block]

Note

3.

      Company Operations

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.

Following is a summary of segmented operations information for the

six

months ended

June 30, 2018

and

2017,

respectively:

	2018		2017
Revenues
Oil and Gas	$	286,255	$	333,362
Timber		355,008		8,966
Surface		99,465		253,448
Total		740,728		595,776
Cost and Expenses
Oil and Gas		29,943		33,049
Timber		35,378		6,107
Surface		14,506		24,848
Total		79,824		64,004
Income from Operations
Oil and Gas		256,312		300,313
Timber		319,630		2,859
Surface		84,962		228,600
Total		660,904		531,772
Other Income (Expense) before Income Taxes		328,161		(273,672	)
Income before Income Taxes		989,065		258,100
Identifiable Assets, net of accumulated depreciation and depletion
Oil and Gas		--		--
Timber		2,134,230		2,119,180
Surface		--		--
General Corporate Assets		13,286,517		12,604,557
Total		15,420,747		14,723,737
Capital Expenditures
Oil and Gas		--		--
Timber		29,763		11,040
Surface		--		--
General Corporate Assets		10,371		--
Total		40,134		11,040
Depreciation and Depletion
Oil and Gas		--		--
Timber		14,713		--
Surface		--		--
General Corporate Assets		467		467
Total	$	15,180	$	467

There are

no

intersegment sales reported in the accompanying income statements. 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, 2017.

The Company evaluates performance based on income or loss from operations before income taxes excluding any nonrecurring gains and losses on securities held available-for-sale. 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.

Revenue from customers representing

5%

or more of total revenue for the

six

months ended

June 30, 2018

and

2017,

respectively are:

Count	2018		2017
1	$	250,334	$	179,292
2		77,137		80,210
3		73,110		54,154
4		47,567		42,513
5		38,333		38,333

XML

Note 4 - Cash - Restricted

6 Months Ended

Jun. 30, 2018

Notes to Financial Statements

Restricted Assets Disclosure [Text Block]

Note

4.

       Cash – Restricted

During the

first

quarter of

2018,

the company closed on the sale of

four

parcels of land all of which were structured as a “deferred exchange using a qualified intermediary” pursuant to Paragraph

1031

of the Internal Revenue Code (

1031

Exchange) for income tax purposes. The net proceeds from these transactions of

$993,160

of which

$873,355

remained in the Cash-Restricted amount at

June 30, 2018.

Subsequent to

March 31, 2018,

identified properties for the purposes of the

1031

Exchange were deemed

not

acceptable after preliminary due diligence. The

1031

Exchange will

not

be completed. The related tax expense on the gain from these sales has been accrued at

June 30, 2018.

The following table provides a reconciliation of cash and cash-restricted reported within the balance sheet that sum to the total of the same such amounts shown in the statement of cash flows.

	June 30, 2018
Cash	$	795,332
Cash-restricted		873,355
Cash and cash-restricted	$	1,668,687

XML

Note 5 - Dividend Declaration

6 Months Ended

Jun. 30, 2018

Notes to Financial Statements

Dividends [Text Block]

Note

5.

      Dividend Declaration

On

March 22, 2018

,

the Company declared a dividend of

twelve

(

$0.12

) cents per common share payable to shareholders of record date as of

April 5, 2018

and payment date of

April 12, 2018

.

XML

Note 6 - Related Party Transactions

6 Months Ended

Jun. 30, 2018

Notes to Financial Statements

Related Party Transactions Disclosure [Text Block]

Note

6.

      Related Party Transactions

On

April 17, 2017,

the Company entered into an option to lease agreement (“OTL”) with Stream Wetlands Services, LLC (“Stream”). Under the terms of the OTL, Stream paid the Company

$38,333

during the quarter ended

March 31, 2018

for an extension of an exclusive right to evaluate and market certain lands owned by the Company to their client for beneficial use purposes to compensate for wetlands impact through

February 28, 2019.

Stream

may

extend the OTL for up to

two

(

2

) successive periods of

twelve

(

12

) months. If Stream is chosen to perform their client’s project, the Company has agreed to put forth its best efforts to negotiate and enter into a mutually acceptable lease form. Due to the uncertainty of the contract award and project scope, we are unable to estimate the potential financial benefit, if any, to the Company. William Gray Stream, a prior Company Director, is the president of Stream Wetlands Services, LLC.

XML

Note 3 - Company Operations (Tables)

6 Months Ended

Jun. 30, 2018

Notes Tables

Schedule of Segment Reporting Information, by Segment [Table Text Block]

	2018		2017
Revenues
Oil and Gas	$	286,255	$	333,362
Timber		355,008		8,966
Surface		99,465		253,448
Total		740,728		595,776
Cost and Expenses
Oil and Gas		29,943		33,049
Timber		35,378		6,107
Surface		14,506		24,848
Total		79,824		64,004
Income from Operations
Oil and Gas		256,312		300,313
Timber		319,630		2,859
Surface		84,962		228,600
Total		660,904		531,772
Other Income (Expense) before Income Taxes		328,161		(273,672	)
Income before Income Taxes		989,065		258,100
Identifiable Assets, net of accumulated depreciation and depletion
Oil and Gas		--		--
Timber		2,134,230		2,119,180
Surface		--		--
General Corporate Assets		13,286,517		12,604,557
Total		15,420,747		14,723,737
Capital Expenditures
Oil and Gas		--		--
Timber		29,763		11,040
Surface		--		--
General Corporate Assets		10,371		--
Total		40,134		11,040
Depreciation and Depletion
Oil and Gas		--		--
Timber		14,713		--
Surface		--		--
General Corporate Assets		467		467
Total	$	15,180	$	467

Schedule of Revenue by Major Customers by Reporting Segments [Table Text Block]

Count	2018		2017
1	$	250,334	$	179,292
2		77,137		80,210
3		73,110		54,154
4		47,567		42,513
5		38,333		38,333

XML

Note 4 - Cash - Restricted (Tables)

6 Months Ended

Jun. 30, 2018

Notes Tables

Schedule of Cash and Cash Equivalents [Table Text Block]

	June 30, 2018
Cash	$	795,332
Cash-restricted		873,355
Cash and cash-restricted	$	1,668,687

XML

Note 2 - Income Taxes (Details Textual) $ in Thousands	Jun. 30, 2018 USD ($)
Unrecognized Tax Benefits, Income Tax Penalties and Interest Accrued, Total	$ 0
Unrecognized Tax Benefits, Ending Balance	$ 0

XML

Note 3 - Company Operations (Details Textual)	3 Months Ended		6 Months Ended
	Jun. 30, 2018 USD ($)	Jun. 30, 2017 USD ($)	Jun. 30, 2018 USD ($)	Jun. 30, 2017 USD ($)
Number of Operating Segments			3
Revenues, Total	$ 394,033	$ 397,005	$ 740,728	$ 595,776
Intersegment Eliminations [Member]
Revenues, Total	$ 0	$ 0	$ 0	$ 0

XML

Note 3 - Company Operations - Segmented Operations Information (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017	Dec. 31, 2017
Revenue by Customer	$ 394,033	$ 397,005	$ 740,728	$ 595,776
Total cost, expenses and (gains)	166,232	142,250	(535,054)	311,813
Income from operations	227,801	254,755	1,275,782	283,963
Other Income (Expense) before income Taxes	12,954	10,363	25,876	20,575
Income before income Taxes	240,755	265,118	1,301,658	304,538
Total assets	15,420,747		15,420,747		$ 14,723,737
Depreciation, depletion and amortization			15,180	467
Oil and Gas [Member]
Revenues from customers	161,678	151,693	286,255	333,362
Timber [Member]
Revenues from customers	176,559	8,966	355,008	8,966
Operating Segments [Member]
Revenue by Customer			740,728	595,776
Total cost, expenses and (gains)			79,824	64,004
Income from operations			660,904	531,772
Other Income (Expense) before income Taxes			328,161	(273,672)
Income before income Taxes			989,065	258,100
Total assets	15,420,747	14,723,737	15,420,747	14,723,737
Capital Expenditures			40,134	11,040
Depreciation, depletion and amortization			15,180	467
Oil And Gas Segment [Member] | Operating Segments [Member]
Total cost, expenses and (gains)			29,943	33,049
Income from operations			256,312	300,313
Total assets
Capital Expenditures
Depreciation, depletion and amortization
Oil And Gas Segment [Member] | Operating Segments [Member] | Oil and Gas [Member]
Revenues from customers			286,255	333,362
Timber Segment [Member] | Operating Segments [Member]
Total cost, expenses and (gains)			35,378	6,107
Income from operations			319,630	2,859
Total assets	2,134,230	2,119,180	2,134,230	2,119,180
Capital Expenditures			29,763	11,040
Depreciation, depletion and amortization			14,713
Timber Segment [Member] | Operating Segments [Member] | Timber [Member]
Revenues from customers			355,008	8,966
Surface Segment [Member] | Operating Segments [Member]
Revenues, leases			99,465	253,448
Total cost, expenses and (gains)			14,506	24,848
Income from operations			84,962	228,600
Total assets
Capital Expenditures
Depreciation, depletion and amortization
Corporate Segment [Member] | Operating Segments [Member]
Total assets	$ 13,286,517	$ 12,604,557	13,286,517	12,604,557
Capital Expenditures			10,371
Depreciation, depletion and amortization			$ 467	$ 467

XML

Note 3 - Company Operations - Customers Representing 5% or More of Total Revenue (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Revenue by Customer	$ 394,033	$ 397,005	$ 740,728	$ 595,776
Major Customers 1 [Member]
Revenue by Customer			250,334	179,292
Major Customers 2 [Member]
Revenue by Customer			77,137	80,210
Major Customers 3 [Member]
Revenue by Customer			73,110	54,154
Major Customers 4 [Member]
Revenue by Customer			47,567	42,513
Major Customers 5 [Member]
Revenue by Customer			$ 38,333	$ 38,333

XML

Note 4 - Cash - Restricted (Details Textual)	6 Months Ended
	Jun. 30, 2018 USD ($)	Jun. 30, 2017 USD ($)	Dec. 31, 2017 USD ($)
Number of Land Parcels Sold	4
Proceeds from Sale of Property, Plant, and Equipment, Total	$ 996,494	$ 3,390
Restricted Cash and Cash Equivalents, Current, Total	873,355		$ 33,821
Land [Member]
Proceeds from Sale of Property, Plant, and Equipment, Total	$ 993,160

XML

Note 4 - Cash - Restricted - Cash and Cash-restricted (Details) - USD ($)	Jun. 30, 2018	Dec. 31, 2017	Jun. 30, 2017	Dec. 31, 2016
Cash	$ 795,332	$ 1,618,583
Cash-restricted	873,355	33,821
Cash and cash-restricted	$ 1,668,687	$ 1,652,404	$ 1,518,481	$ 1,081,188

XML

Note 5 - Dividend Declaration (Details Textual)	Mar. 22, 2018 $ / shares
Dividends Payable, Amount Per Share	$ 0.12
Dividends Payable, Date Declared	Mar. 22, 2018
Dividends Payable, Date of Record	Apr. 05, 2018
Dividends Payable, Date to be Paid	Apr. 12, 2018

XML

Note 6 - Related Party Transactions (Details Textual) - Stream Wetlands Services [Member] - Exclusive Right to Evaluate and Market Lands For Beneficial Purposes to Compensate for Impact [Member]	Apr. 17, 2017 USD ($)
Related Party Transaction, Amounts of Transaction	$ 38,333
Option to Lease Arrangements, Number of Renewal Periods	2
Lessee, Operating Lease, Renewal Term	1 year