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 September 30, 2019

☐ 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.)
127 W. Broad Street
Lake Charles, LA		70601
(Address of principal executive offices)		(Zip Code)
	(337) 493-2399
	(Registrant’s telephone number)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock with no par value	CKX	NYSE American

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 every Interactive Data File required to be submitted 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 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 shares of common stock are issued and outstanding as of November 1, 2019.

TABLE OF CONTENTS

		Page
PART I.	FINANCIAL INFORMATION
ITEM 1.	FINANCIAL STATEMENTS BALANCE SHEETS AS OF SEPTEMBER 30, 2019 (UNAUDITED) AND DECEMBER 31, 2018 STATEMENTS OF INCOME FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2019 AND 2018 (UNAUDITED) STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2019 AND 2018 (UNAUDITED) STATEMENTS OF CASH FLOWS FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2019 AND 2018 (UNAUDITED) NOTES TO FINANCIAL STATEMENTS AS OF SEPTEMBER 30, 2019 (UNAUDITED)	1
ITEM 2.	MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS	11
ITEM 3.	QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK	16
ITEM 4.	CONTROLS AND PROCEDURES	16
PART II.	OTHER INFORMATION
ITEM 1	LEGAL PROCEEDINGS	16
ITEM 1A.	RISK FACTORS	16
ITEM 2.	UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS	16
ITEM 3.	DEFAULTS UPON SENIOR SECURITIES	16
ITEM 4.	MINE SAFETY DISCLOSURES	16
ITEM 5.	OTHER INFORMATION	16
ITEM 6.	EXHIBITS	16
SIGNATURES		17

PART I - FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

CKX LANDS, INC.

BALANCE SHEETS

	September 30, 2019		December 31, 2018
	(unaudited)
ASSETS
Current assets:
Cash	$	2,940,360	$	1,860,736
Certificates of deposit		3,173,000		3,370,000
Equity investment in mutual funds		249,436		244,825
Accounts receivable		111,388		118,463
Prepaid expense and other assets		86,362		36,989
Total current assets		6,560,546		5,631,013
Long-term certificate of deposit		-		725,000
Property and equipment, net		9,238,383		9,245,988
Total assets	$	15,798,929	$	15,602,001
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Trade payables and accrued expenses		132,041		146,268
Unearned revenue		94,740		58,893
Income tax payable		-		11,654
Total current liabilities		226,781		216,815
Deferred income tax payable		187,664		187,664
Total liabilities		414,445		404,479
Stockholders' equity:
Common stock, 3,000,000 authorized, no par value, 1,942,495 issued and outstanding as of September 30, 2019 and December 31, 2018		59,335		59,335
Retained earnings		15,325,149		15,138,187
Total stockholders' equity		15,384,484		15,197,522
Total liabilities and stockholders' equity	$	15,798,929	$	15,602,001

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

1

CKX LANDS, INC.

STATEMENTS OF OPERATIONS

(Unaudited)

	Three Months Ended September 30,				Nine Months Ended September 30,
	2019		2018		2019			2018
Revenues:
Oil and gas	$	174,097	$	178,640	$	408,029		$	464,895
Timber sales		16,717		56,929		31,198			411,936
Surface revenue		27,940		22,127		130,644			109,133
Surface revenue - related party		9,583		-		28,749			12,459
Total revenue		228,337		257,696		598,620			998,423
Costs, expenses and (gains):
Oil and gas costs		20,196		18,435		48,364			48,378
Timber costs		9,292		15,212		14,376			50,591
Surface costs		581		10,717		1,274			25,220
General and administrative expense		143,198		136,366		471,668			402,674
Depreciation expense		507		1,050		1,517			1,517
Gain on sale of land		-		-		(80,876	)		(881,654	)
Total costs, expenses and (gains)		173,774		181,780		456,323			(353,274	)
Income from operations		54,563		75,916		142,297			1,351,697
Interest income		28,512		26,301		84,524			52,176
Income before income taxes		83,075		102,217		226,821			1,403,873
Federal and state income tax expense:
Current		25,105		16,817		39,859			329,409
Deferred		-		-		-			-
Total income taxes		25,105		16,817		39,859			329,409
Net income	$	57,970	$	85,400	$	186,962		$	1,074,464
Dividends paid		-		-		-			(233,099	)
Net income available to common shareholders	$	57,970	$	85,400	$	186,962		$	841,366

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

2

CKX LANDS, INC.

STATEMENTS OF CHANGES IN STOCKHOLDERS EQUITY

THREE MONTHS ENDED SEPTEMBER 30, 2019 AND 2018

(Unaudited)

	Common Stock				Retained		Total
	Shares		Amount		Earnings		Equity
Balances, June 30, 2019 (unaudited)		1,942,495	$	59,335	$	15,267,179	$	15,326,514
Net income		-		-		57,970		57,970
Balances, September 30, 2019 (unaudited)		1,942,495	$	59,335	$	15,325,149	$	15,384,484

	Common Stock				Retained		Total
	Shares		Amount		Earnings		Equity
Balances, June 30, 2018 (unaudited)		1,942,495	$	59,335	$	15,012,192	$	15,071,527
Net income		-		-		85,400		85,400
Balances, September 30, 2018 (unaudited)		1,942,495	$	59,335	$	15,097,592	$	15,156,927

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

CKX LANDS, INC.

STATEMENTS OF CHANGES IN STOCKHOLDERS EQUITY

NINE MONTHS ENDED SEPTEMBER 30, 2019 AND 2018

(Unaudited)

	Common Stock				Retained		Total
	Shares		Amount		Earnings		Equity
Balances, December 31, 2018		1,942,495	$	59,335	$	15,138,187	$	15,197,522
Net income		-		-		186,962		186,962
Balances, September 30, 2019 (unaudited)		1,942,495	$	59,335	$	15,325,149	$	15,384,484

	Common Stock				Retained			Total
	Shares		Amount		Earnings			Equity
Balances, December 31, 2017		1,942,495	$	59,335	$	14,256,226		$	14,315,561
Dividends paid		-		-		(233,099	)		(233,099	)
Net income		-		-		1,074,464			1,074,464
Balances, September 30, 2018 (unaudited)	$	1,942,495	$	59,335	$	15,097,592		$	15,156,926

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

3

 CKX LANDS, INC.

STATEMENTS OF CASH FLOWS

(Unaudited)

	Nine Months Ended
	September 30,
	2019			2018
CASH FLOWS FROM OPERATING ACTIVITIES
Net income	$	186,962		$	1,074,464
Less non-cash expenses included in net income:
Depreciation expense		1,517			1,517
Depletion expense		288			13,896
Gain on sale of land		(80,876	)		(881,654	)
Unrealized gain on equity investment in mutual funds		(246	)		-
Changes in operating assets and liabilities:
Increase (decrease) in current assets		(42,297	)		(67,375	)
Increase (decrease) in current liabilities		9,966			(42,759	)
Net cash provided by operating activities		75,314			98,089
CASH FLOWS FROM INVESTING ACTIVITIES
Purchases of certificates of deposit		(1,468,000	)		(3,145,000	)
Proceeds from maturity of certificates of deposit		2,390,000			2,662,890
Purchases of mutual funds		(4,365	)		-
Costs of reforesting timber		(22,560	)		(39,317	)
Proceeds from the sale of fixed assets		109,235			996,494
Net cash provided by investing activities		1,004,310			475,067
CASH FLOWS FROM FINANCING ACTIVITIES
Dividends paid		-			(233,099	)
Net cash used in financing activities		-			(233,099	)
NET INCREASE IN CASH AND RESTRICTED CASH		1,079,624			340,057
Cash and restricted cash, beginning of the period		1,860,736			1,652,404
Cash and restricted cash, end of the period	$	2,940,360		$	1,992,461
SUPPLEMENTAL CASH FLOW INFORMATION
Cash paid for interest	$	-		$	-
Cash paid for income taxes	$	67,107		$	355,387

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

4

CKX LANDS, INC.

NOTES TO UNAUDITED FINANCIAL STATEMENTS

The “Company,” “we,” “us,” and “our,” refer to CKX Lands, Inc.

Note 1:      Significant Accounting Policies and Recent Accounting Pronouncements

Significant Accounting Policies

Basis of Presentation

The accompanying unaudited interim financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States of America, pursuant to the rules and regulations of the Securities and Exchange Commission. Certain information and footnote disclosures have been omitted pursuant to such rules and regulations. In the opinion of management, the accompanying financial statements include normal recurring adjustments that are necessary for a fair presentation of the results for the interim periods presented. These financial statements should be read in conjunction with our audited financial statements and notes thereto for the fiscal year ended December 31, 2018 included in our Annual Report on Form 10-K. The results of operations for the three and nine months ended September 30, 2019 are not necessarily indicative of results to be expected for the full fiscal year or any other periods.

The preparation of the financial statements in conformity with U.S. generally accepted accounting principles requires management to make a number of estimates and judgments that affect the reported amounts of assets, liabilities, expenses, and related disclosures. Actual results may differ from these estimates.

Certain prior period amounts have been reclassified for consistency with the current period presentation. These reclassifications had no effect on the reported results of operations.

Concentration of Credit Risk

The Company maintains its cash balances in seven financial institutions. The amount on deposit in each financial institution is insured by the Federal Deposit Insurance Corporation up to $250,000.

Cash Equivalents

Cash equivalents are highly liquid debt instruments with original maturities of three months or less when purchased.

Certificate of Deposits

Certificates of deposit have maturities greater than three months when purchased, in amounts not greater than $250,000. All certificates of deposit are held until maturity and recorded at cost which approximates fair value. Certificates of deposit mature through 2020. Certificates of deposit with a maturity of one year or less are classified as short-term. Certificates of deposit with a maturity of more than one year are classified as long-term.

Equity Investment

In January 2016, the FASB issued ASU 2016-01, “Financial Instruments – Overall (Subtopic 825-10): Recognition of Financial Assets and Financial Liabilities,” (ASU 2016-01), which makes targeted amendments to the guidance for recognition, measurement, presentation and disclosure of financial instruments.  The guidance under ASU 2016-01 requires equity investments, other than equity method investments, to be measured at fair value with changes in fair value recognized in net income.  As of September 30, 2019, and December 31, 2018, the Company classified $249,436 and $244,825, respectively, of mutual funds as equity securities.  The Company invests in ultra-short, high quality U.S. dollar money market funds, foreign funds, and obligations issued by the U.S. Government. The Company did not hold any equity investments until the fourth quarter of 2018, accordingly, there are no effects on the Company’s investments from the adoption of ASU 2016-01.

5

Accounts Receivable

The Company’s accounts receivable consist of incomes received after quarter-end for royalties produced prior to quarter-end.  When there are royalties that have not been received at the time of the preparation of the financial statements for months in the prior quarter, the Company estimates the amount to be received based on the average of the most recent 12 month’s royalties that were received from that particular well.  The Company does not maintain an allowance for doubtful accounts because other than the accrual for earned but not received royalties, it has no accounts receivable.

Property, Building and Equipment

Property, building, and equipment is stated at cost. Major additions are capitalized. Maintenance and repairs are charged to income as incurred. Depreciation is computed on the straight-line and accelerated methods over the following estimated useful lives of the assets:

Furniture and equipment (in years)	5	-	7
Land improvements (in years)		15

Impairment of Long-lived Assets

Long-lived assets, such as land, timber and property, buildings, and equipment, are reviewed for impairment whenever events or changes in circumstances indicate the carrying amount of an asset may not be recoverable. If events or circumstances arise that require a long-lived asset to be tested for potential impairment, the Company first compares undiscounted cash flows expected to be generated by the asset to its carrying value. If the carrying amount of the long-lived asset is not recoverable on an undiscounted cash flow basis, an impairment charge is recognized to the extent that the carrying value exceeds the fair value. Fair value may be determined through various valuation techniques including quoted market prices, third-party independent appraisals and discounted cash flow models. The Company recorded no impairment charges during the nine months ended September 30, 2019 and 2018.

Revenue Recognition

Effective January 1, 2018, we adopted ASU 2014-09, Revenue from Contracts with Customers (Topic 606). Under the new standard, we recognize revenues when the following criteria are met: (i) persuasive evidence of a contract with a customer exists, (ii) identifiable performance obligations under the contract exist, (iii) the transaction price is determinable for each performance obligation, (iv) the transaction price is allocated to each performance obligation, and (v) the performance obligations are satisfied. We derive a majority of our revenues from oil and gas royalties, timber sales, and surface leases. Surface leases are not within the scope of ASC 606. See Note 6 for more detailed information about the Company’s reportable segments.

Oil and Gas

Oil and gas revenue is generated through customer contracts, where we provide the customer access to a designated tract of land upon which the customer performs exploration, extraction, production and ultimate sale of the oil and gas. The Company receives royalties on all oil and gas produced by the customer. The performance obligation identified in oil and gas related contracts is the production of oil and gas on the designated tract of land. The performance obligation is satisfied at a point in time, which is when the customer produces oil and gas. The transaction price is comprised of fixed fees (royalties) on all oil and gas produced. The Company accrues monthly royalty revenues based upon estimates and adjusts to actual as the Company receives payments. Net accrued royalty income was $111,915 and $93,594 as of September 30, 2019 and December 31, 2018, respectively. There are no capitalized contract costs associated with oil and gas contracts. The accounting of royalty income remains largely unchanged upon implementation of ASC 606.

Timber

Timber revenue is generated through customer contracts executed as a pay-as-cut arrangement, where the customer acquires the right to harvest specified timber on a designated tract for a set period of time at agreed-upon unit prices. The performance obligation identified in timber related contracts is the severing of a single tree.

We satisfy our performance obligation when timber is severed, at which time revenue is recognized. The transaction price for timber sales is determined using contractual rates applied to harvest volumes. The Company may receive a deposit at the time of entering into a stumpage agreement and this deposit is recorded in trade payables and accrued expenses until earned. The Company held stumpage agreement deposits of $54,300 at September 30, 2019 and December 31, 2018. There are no capitalized contract costs associated with timber contracts. The accounting of timber revenue remains largely unchanged upon implementation of ASC 606.

6

Surface

Surface revenue is earned through annual leases for agricultural and hunting activities and the Company records revenues evenly over the term of these leases.  Surface revenues from these sources are recurring on an annual basis.  Unearned surface revenues are recorded in trade payables and accrued expenses and were $94,741 and $58,893 at September 30, 2019, and December 31, 2018, respectively.

Surface revenue is also earned through right of way and related temporary workspace leases, both of which are not usual in occurrence and are not recurring sources of revenue. Generally, a right of way lease relates to either a utility or pipeline right of way that is a permanent servitude or exists for fixed periods of time greater than thirty years. The Company retains ownership of the land and the servitude is limited to the use of the surface. Revenue is recorded at the time of the agreement’s execution date. For income tax purposes, these types of agreements are treated as sales of business assets.

Other sources of surface revenue can be commercial activities leases and sales of surface minerals, such as dirt.

Basic and Diluted Earnings per share

Net earnings per share is provided in accordance with FASB ASC 260-10, "Earnings per Share". Basic earnings per share is computed by dividing earnings available to common stockholders by the weighted average number of common shares outstanding during the period. Diluted income per share gives effect to all dilutive potential common shares outstanding during the period. Dilutive income per share excludes all potential common shares if their effect is anti-dilutive. As of September 30, 2019, and 2018 there were no dilutive shares outstanding.

Dividends

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 the current economic conditions among other information deemed relevant. Dividends paid per common share are based on the weighted average number of shares of common stock outstanding during the period. The Company declared and paid a dividend of $233,099 during the nine months ended September 30, 2018. No dividends were declared during the nine months ended September 30, 2019.

Pursuant to a dividend reversion clause in the Company’s Articles of Incorporation, dividends not claimed within one year after the dividend becomes payable will expire and revert in full ownership to the Company and the Company’s obligation to pay such dividend will cease. Any dividend reversions are recorded in equity upon receipt.

Recent Accounting Pronouncements

In February 2016, the FASB issued ASU 2016-02, which amended the accounting treatment for leases. Lessees (for capital and operating leases) and lessors (for sales-type leases, direct financing leases and operating leases) must apply a modified retrospective transition approach for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements. The modified retrospective approach would not require any transition accounting for leases that expired before the earliest comparative period presented. Lessees and lessors may not apply a full retrospective transition approach. In July 2018, the FASB issued ASU 2018-10 and ASU 2018-11. ASU 2018-10 provides certain areas for improvement in ASU 2016-02 and ASU 2018-11 provides an additional optional transition method by allowing entities to initially apply the new leasing standard at the adoption date and recognize a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. The new leasing standard is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. The Company adopted this standard as of January 1, 2019. The Company reviewed its service agreements and other arrangements and evaluated whether they met the definition of a lease under ASU 2016-02. The Company determined that the adoption of this standard would have no impact on its financial statements.

There are various other updates recently issued, most of which represented technical corrections to the accounting literature or application to specific industries and are not expected to have a material impact on the Company’s financial position, results of operations or cash flows.

Note 2:      Certificates of Deposit

The Company has certificates of deposit for investment purposes. Certificates of deposit have maturities greater than three months when purchased, in amounts not greater than $250,000. All certificates of deposit are held until maturity and recorded at cost which approximates fair value. Certificates of deposit mature through August of 2020. Total certificates of deposit were $3,173,000 and $4,095,000 as of September 30, 2019 and December 31, 2018, respectively. Purchases of certificates of deposit were $1,468,000 and $3,145,000 for the nine months ended September 30, 2019 and 2018, respectively. Proceeds from the maturity of certificates of deposit were $2,390,000 and $2,662,890 for the nine months ended September 30, 2019 and 2018, respectively.

7

Note 3:      Fair Value of Financial Instruments

ASC 820 Fair Value Measurements and Disclosures (“ASC 820”), defines fair value, establishes a framework for measuring fair value and enhances disclosures about fair value measurements. It defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. ASC 820 also establishes a fair value hierarchy which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The standard describes three levels of inputs that may be used to measure fair value:

Level 1: Observable inputs such as quoted prices (unadjusted) in active markets for identical assets or liabilities.

Level 2: Inputs other than quoted prices that are observable for the asset or liability, either directly or indirectly. These include quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets or liabilities that are not active; and model-driven valuations whose inputs are observable or whose significant value drivers are observable. Valuations may be obtained from, or corroborated by, third-party pricing services.

Level 3: Unobservable inputs to measure fair value of assets and liabilities for which there is little, if any market activity at the measurement date, using reasonable inputs and assumptions based upon the best information at the time, to the extent that inputs are available without undue cost and effort.

The following methods and assumptions were used to estimate the fair value of each class of financial instruments for which it was practical to estimate that value:

Class	Methods and/or Assumptions
Cash and cash equivalents:	Carrying value approximates fair value due to its readily convertible characteristic.
Certificate of Deposit:	Held until maturity and recorded at amortized cost which approximates fair value.
Equity Investment in mutual funds:	Carrying value adjusted to and presented at fair market value.

The estimated fair value of the Company's financial instruments are as follows:

			September 30, 2019				December 31, 2018
Financial Assets:	Level		Carrying Value		Fair Value		Carrying Value		Fair Value
Cash and cash equivalents		1	$	2,940,360	$	2,940,360	$	1,860,736	$	1,860,736
Certificate of deposit - short term		1		3,173,000		3,173,000		3,370,000		3,370,000
Certificate of deposit - long term		1		-		-		725,000		725,000
Equity investment in mutual funds		1		249,197		249,436		244,832		244,825
Total			$	6,362,557	$	6,362,796	$	6,200,568	$	6,200,561

Note 4:      Property and Equipment

Property and equipment consisted of the following:

	September 30,			December 31,
	2019			2018
Land	$	7,023,053		$	7,051,412
Timber		2,184,661			2,162,390
Building and equipment		108,602			108,602
		9,316,316			9,322,404
Accumulated depreciation		(77,933	)		(76,416	)
Total	$	9,238,383		$	9,245,988

8

During the nine months ended September 30, 2019 and 2018, the Company had a gain on sale of land of $80,876 and $881,654, respectively. For the nine months ended September 30, 2018, $767,147 of the gain represented gain on the sale of an undivided 1/6th ownership interest in land.

Depreciation expense was $1,517 for the nine months ended September 30, 2019 and 2018.

Depletion expense was $288 and $13,896 for the nine months ended September 30, 2019 and 2018, respectively.

Note 5:      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.

9

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

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2019			2018			2019			2018
Revenues:
Oil and gas	$	174,097		$	178,640		$	408,029		$	464,895
Timber sales		16,717			56,929			31,198			411,936
Surface revenue		37,523			22,127			159,393			121,592
Total segment revenues		228,337			257,696			598,620			998,423
Cost and expenses:
Oil and gas costs		20,196			18,435			48,364			48,378
Timber costs		9,292			15,212			14,376			50,591
Surface costs		581			10,717			1,274			25,220
Total segment costs and expenses		30,069			44,364			64,014			124,189
Income from operations:
Oil and gas		153,901			160,205			359,665			416,517
Timber		7,425			41,717			16,822			361,345
Surface		36,942			11,410			158,119			96,372
Total segment income from operations		198,268			213,332			534,606			874,234
Other income (expense) before income taxes		(115,193	)		(111,115	)		(307,785	)		529,639
Income before income taxes	$	83,075		$	102,217		$	226,821		$	1,403,873

	Nine Months Ended		Year Ended
	September 30,		December 31,
	2019		2018
Identifiable Assets, net of accumulated depreciation
Timber	$	2,184,661	$	2,162,390
General corporate assets		13,614,268		13,439,611
Total		15,798,929		15,602,001
Capital expenditures:
Timber		22,560		45,067
Surface		-		4,900
General corporate assets		-		5,471
Total segment costs and expenses		22,560		55,438
Depreciation and depletion
Oil and gas		-		-
Timber		288		1,858
General corporate assets		1,517		2,027
Total	$	1,805	$	3,885

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, 2018. 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.

Note 6:      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 those filed in the last three years. 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.

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Note 7:      Related Party Transactions

The Company and Stream Wetlands Services, LLC (“Stream Wetlands”) are parties to an option to lease agreement dated April 17, 2017 (the “OTL”). The OTL provides Stream Wetlands an option, exercisable through February 28, 2020, to lease certain lands from the Company, subject to the negotiation and execution of a mutually acceptable lease form. Stream Wetlands paid the Registrant $38,333 upon execution of the OTL, and an additional $38,333 during the quarters ended March 31, 2018 and 2019. Stream Wetlands may extend the term of the OTL for one more year by paying $38,333 in the first quarter of 2020. Mr. Stream, a director of the Company, is the president of Stream Wetlands.

The Company’s President is a partner in Stockwell, Sievert, Viccellio, Clements, LLP (“Stockwell”). Beginning in August 2018, the Company began renting office space from Stockwell. The Company pays Stockwell $750 per month as rent for office space and associated services, $2,000 per month to reimburse the firm for an administrative assistant and reimburses Stockwell for miscellaneous office supplies and legal expenses. For the three months ended September 30, 2019, the Company recorded $8,468 in total of such expense, of which $2,250 was rent expense. For the nine months ended September 30, 2019, the Company recorded $25,512 in total, of which $6,750 was rent expense.

Note 8:      Concentrations

Revenue from customers representing 5% or more of total revenue for the nine months ended September 30, 2019 and 2018, respectively were:

	Nine Months Ended September 30,
Count	2019		2018
1	$	82,644	$	254,018
2		46,267		117,589
3		41,213		93,563
4		38,333		72,557
5		38,246		44,316
6		30,293		-

ITEM 2. MANAGEMENT DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

The following discussion and analysis of our financial condition and results of operations should be read in conjunction with our unaudited financial statements and related notes included in this Quarterly Report on Form 10-Q and the audited financial statements and notes thereto as of and for the year ended December 31, 2018 and the related Management’s Discussion and Analysis of Financial Condition and Results of Operations, both of which are contained in our Annual Report on Form 10-K for the fiscal year ended December 31, 2018, filed on March 21, 2019.

Cautionary Statement

This Management’s Discussion and Analysis includes a number of forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”) that reflect our current views with respect to future events and financial performance. Forward-looking statements are often identified by words like “believe,” “expect,” “plan,” “estimate,” “anticipate,” “intend,” “project,” “will,” “predicts,” “seeks,” “may,” “would,” “could,” “potential,” “continue,” “ongoing,” “should” and similar expressions, or words which, by their nature, refer to future events. You should not place undue certainty on these forward-looking statements, which apply only as of the date of this Form 10-Q. These forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from historical results or from our predictions, including those risks described in our Annual Report on Form 10-K and in our other public filings. We undertake no obligation to update or revise publicly any forward-looking statements, whether because of new information, future events, or otherwise.

Overview

CKX Lands, Inc., a Louisiana corporation, began operations in 1930 under the name Calcasieu Real Estate & Oil Co., Inc. It was originally organized as a spin-off by a bank operating in southwest Louisiana. The purpose of the spin-off was to form an entity to hold non-producing mineral interests which regulatory authorities required the bank to charge off. Over the years, as some of the mineral interests began producing, the Company used part of the proceeds to acquire land. In 1990, the Company made its largest acquisition when it was one of four purchasers who bought a fifty percent undivided interest in approximately 35,575 acres in southwest Louisiana.

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Today the Company’s income is derived from mineral royalties, timber sales and surface payments from its lands. CKX receives income from royalty interests and mineral leases related to oil and gas production, timber sales, and surface rents. Although CKX is active in the management of its land and planting and harvesting its timber, CKX is passive in the production of income from oil and gas production in that CKX does not explore for oil and gas or operate wells. These oil and gas activities are performed by unrelated third parties.

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. The Company’s oil and gas income fluctuates as new oil and gas production is discovered on Company land and then ultimately depletes or becomes commercially uneconomical to produce. The volatility in the daily commodity pricing of a barrel of oil or a thousand cubic feet, or “MCF,” of gas will also cause fluctuations in the Company’s oil and gas income.

CKX has small royalty interests in 29 different producing oil and gas fields. The size of each royalty interest is determined by the Company’s net ownership in the acreage unit for the well. CKX’s royalty interests range from 0.0045% for the smallest to 7.62% for the largest. As the Company does not own or operate the wells, it does not have access to any reserve information. Eventually, the oil and gas reserves under the Company’s current land holdings will be depleted.

Timber income is derived from sales of timber on Company lands. The timber income will fluctuate depending on our ability to secure stumpage agreements in the regional markets, timber stand age, and/or stumpage commodity prices. Timber is a renewable resource that the Company actively manages.

Surface income is earned from various recurring and non-recurring sources. Recurring surface income is earned from lease arrangements for farming, recreational and commercial uses. Non-recurring surface income can include such activities as pipeline right of ways, and temporary worksite rentals.

In managing its lands, the Company relies on and has established relationships with real estate, forestry, environmental and agriculture consultants as well as attorneys with legal expertise in general corporate matters, real estate, and minerals.

The Company actively searches for additional real estate for purchase in Louisiana with a focus on southwest Louisiana. When evaluating unimproved real estate for purchase, the Company will consider numerous characteristics including but not limited to, timber fitness, agriculture fitness, future development opportunities and/or mineral potential. When evaluating improved real estate for purchase, the Company will consider characteristics including, but not limited to, geographic location, quality of existing revenue streams, and/or quality of the improvements.

Results of Operations

Revenue – Three Months Ended September 30, 2019

Total revenues for the three months ended September 30, 2019 were $228,337, a decrease of approximately 11% when compared with the same period in 2018. Total revenue consists of oil and gas, timber, and surface revenues. Components of revenues for the three months ended September 30, 2019 as compared to 2018, are as follows:

	Three Months Ended
	September 30,
	2019		2018		Change from Prior Year			Percent Change from Prior Year
Revenues:
Oil and gas	$	174,097	$	178,640	$	(4,543	)		(2.5	)%
Timber		16,717		56,929		(40,212	)		(70.6	)%
Surface		37,523		22,127		15,396			69.6	%
Total revenues	$	228,337	$	257,696	$	(29,359	)		(11.4	)%

12

Oil and Gas

Oil and gas revenues were 76% and 69% of total revenues for the three months ended September 30, 2019 and 2018, respectively. A breakdown of oil and gas revenues for the three months ended September 30, 2019 as compared to the three months ended September 30, 2018 is as follows:

	Three Months Ended
	September 30,
	2019		2018		Change from Prior Year			Percent Change from Prior Year
Oil	$	145,511	$	142,664	$	2,847			2.0	%
Gas		28,029		24,971		3,058			12.2	%
Lease and geophysical		557		11,005		(10,448	)		(94.9	)%
Total revenues	$	174,097	$	178,640	$	(4,543	)		(2.5	)%

CKX received oil and/or gas revenues from 80 wells during the three months ended September 30, 2019 and 2018.

The following schedule summarizes barrels and MCF produced and average price per barrel and per MCF for the three months ended September 30, 2019 and 2018:

	Three Months Ended
	September 30,
	2019		2018
Net oil produced (Bbl)(2)		2,308		1,448
Average oil sales price (per Bbl)(1,2)	$	63.05	$	75.25
Net gas produced (MCF)		9,274		5,165
Average gas sales price (per MCF)(1)	$	3.02	$	4.26

(1) Before deduction of production costs and severance taxes

(2) Excludes plant products

Oil revenues increased for the three months ended September 30, 2019, as compared to the three months ended September 30, 2018, by $2,847. Gas revenues increased for the three months ended September 30, 2019, as compared to the same period in 2018, by $3,058. As indicated from the schedule above, the increase in oil revenues were due to an increase in the net oil produced, offset by a decrease in the average oil sales price per barrel. The increase in gas revenues were due to an increase in net gas produced and a decrease in the average price per MCF.

Lease and geophysical revenues decreased for the three months ended September 30, 2019, as compared to the three months ended September 30, 2018, by $10,448. These revenues are dependent on oil and gas producers’ activities, are not predictable and can vary significantly from year to year.

Timber

Timber revenue was $16,717 and $56,929 for the three months ended September 30, 2019 and 2018, respectively. The decrease in timber revenues was due to wet weather during the third quarter of fiscal 2019 that limited customers’ ability to harvest timber.

Surface

Surface revenues increased for the three months ended September 30, 2019, as compared to the three months ended September 30, 2018, by $15,396. This increase is due to an increase in the price per acre charge for leases. 

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Revenue - Nine Months Ended September 30, 2019

Total revenues for the nine months ended September 30, 2019 were $598,620, a decrease of approximately 40% when compared with the same period in 2018. Components of revenues for the nine months ended September 30, 2019 as compared to 2018, are as follows:

	Nine Months Ended
	September 30,
	2019		2018		Change from Prior Year			Percent Change from Prior Year
Revenues:
Oil and gas	$	408,029	$	464,895	$	(56,866	)		(12.2	)%
Timber sales		31,198		411,936		(380,738	)		(92.4	)%
Surface revenue		159,393		121,592		37,801			31.1	%
Total revenues	$	598,620	$	998,423	$	(399,803	)		(40.0	)%

Oil and Gas

Oil and gas revenues were 68% and 47% of total revenues for the nine months ended September 30, 2019 and 2018, respectively. A breakdown of oil and gas revenues for the nine months ended September 30, 2019 as compared to the nine months ended September 30, 2018 is as follows:

	Nine Months Ended
	September 30,
	2019		2018		Change from Prior Year			Percent Change from Prior Year
Oil	$	304,953	$	375,676	$	(70,723	)		(18.8	)%
Gas		97,178		76,223		20,955			27.5	%
Lease and geophysical		5,898		8,509		(2,611	)		(30.7	)%
Total revenues	$	408,029	$	460,408	$	(52,379	)		(11.4	)%

CKX received oil and/or gas revenues from 97 and 89 wells during the nine months ended September 30, 2019 and 2018, respectively.

The following schedule summarizes barrels and MCF produced and average price per barrel and per MCF for the nine months ended September 30, 2019 and 2018:

	Nine Months Ended
	September 30,
	2019		2018
Net oil produced (Bbl)(2)		4,904		4,678
Average oil sales price (per Bbl)(1,2)	$	62.19	$	67.29
Net gas produced (MCF)		25,777		20,334
Average gas sales price (per MCF)(1)	$	3.77	$	3.60

(1) Before deduction of production costs and severance taxes

(2) Excludes plant products

Oil revenues decreased for the nine months ended September 30, 2019, as compared to the nine months ended September 30, 2018, by $70,723. Gas revenues increased for the nine months ended September 30, 2019, as compared to the same period in 2018, by $20,955. As indicated from the schedule above, the decrease in oil revenues was due to a decrease in the net oil produced and a decrease in the average oil sales price per barrel. The increase in gas revenues was due to an increase in the net gas produced and an increase in the average price per MCF.

Lease and geophysical revenues decreased for the nine months ended September 30, 2019, as compared to the nine months ended September 30, 2018, by $2,611. These revenues are dependent on oil and gas producers’ activities, are not predictable and can vary significantly from year to year.

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Timber

Timber revenue was $31,198 and $411,936 for the nine months ended September 30, 2019 and 2018, respectively. The decrease in timber revenues was due to wet weather during the first three quarters of fiscal 2019 that limited customers’ ability to harvest timber.

Surface

Surface revenues increased for the nine months ended September 30, 2019, as compared to the nine months ended September 30, 2018, by $37,801. This is due to the receipt of lease bonuses and delay rentals and an increase in the price per acre charge for leases.

Costs and Expenses – Three and Nine Months Ended September 30, 2019

Oil and gas costs increased slightly for the three months ended September 30, 2019 as compared to the three months ended September 30, 2018 by $1,761. Oil and gas costs decreased slightly for the nine months ended September 30, 2019 as compared to the nine months ended September 30, 2018 by $14. These variances are due to the normal variations in year to year costs.

Timber costs decreased for the three months ended September 30, 2019 as compared to the three months ended September 30, 2018 by $5,920. Timber costs decreased for the nine months ended September 30, 2019 as compared to the nine months ended September 30, 2018 by $36,215. This is primarily due to the decreased timber revenue occurring during the three and nine months ended September 30, 2019.

Surface costs decreased for the three months ended September 30, 2019 as compared to the three months ended September 30, 2018 by $10,136. Surface costs decreased for the nine months ended September 30, 2019 as compared to the nine months ended September 30, 2018 by $23,946. This is primarily due to reduced maintenance expense.

General and administrative expenses increased for the three months ended September 30, 2019 as compared to the three months ended September 30, 2018 by $6,831. General and administrative expenses increased for the nine months ended September 30, 2019 as compared to the nine months ended September 30, 2018 by $68,993. This is primarily due to increased contract services, accounting, SEC filing and legal fees, offset by a decrease in salaries.

Gain on Sale of Land

Gain on sale of land and equipment was $0 for the three months ended September 30, 2019 and 2018. Gain on sale of land and equipment was $80,876 and $881,654 for the nine months ended September 30, 2019 and 2018, respectively. For the nine months ended September 30, 2018, $767,147 of the gain represented gain on the sale of an undivided 1/6^th ownership interest in land.

Liquidity and Capital Resources

Sources of Liquidity

Current assets totaled $6,560,546 and current liabilities equaled $226,781 at September 30, 2019.

The Company entered into an unsecured revolving line of credit with Hancock Whitney Bank on June 25, 2018. The line of credit permitted the Company to draw a maximum aggregate amount of $1,000,000. Borrowings under the line of credit bore interest at a rate of 4.25%. The line of credit expired on June 25, 2019 and was not extended. As of September 30, 2019, there was no outstanding balance under the line of credit.

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

Analysis of Cash Flows

Net cash provided by operating activities decreased by $22,775 to $75,314 for the nine months ended September 30, 2019, compared to the nine months ended September 30, 2018, respectively. The change was attributable primarily to the decrease in net income offset by the decrease on the gain on the sale of land.

Net cash provided by investing activities was $1,004,310 and $475,067 for the nine months ended September 30, 2019, and 2018, respectively.  For the nine months ended September 30, 2019, this primarily resulted from purchases of certificates of deposit of $1,468,000, purchases of mutual funds of $4,365, and costs of reforesting timber of $22,560, offset by proceeds from maturity of certificates of deposit of $2,390,000 and the proceeds from the sale of fixed assets of $109,235. For the nine months ended September 30, 2018, this resulted from purchases of certificates of deposit of $3,145,000 and costs of reforesting timber of $39,317, offset by proceeds from maturity of certificates of deposit of $2,662,890 and from the proceeds of sale of fixed assets of $996,494.   

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Net cash used in financing activities was $0 and $233,099 for the nine months ended September 30, 2019, and 2018, respectively.  For the nine months ended September 30, 2018, this includes dividends paid.

Significant Accounting Polices and Estimates

There were no changes in our significant accounting policies and estimates during the nine months ended September 30, 2019 from those set forth in “Significant Accounting Policies and Estimates” in our Annual Report on Form 10-K for the year ended December 31, 2018 except for the adoption of ASU 2016-02 on January 1, 2019, as discussed in Note 1.

Recent Accounting Pronouncements

See Note 1, Basis of Presentation and Recent Accounting Pronouncements, to our condensed financial statements included in this report for information regarding recently issued accounting pronouncements that may impact our financial statements.

Off-Balance Sheet Arrangements

During the nine months ended September 30, 2019, we did not have any relationships with unconsolidated organizations or financial partnerships, such as structured finance or special purpose entities that would have been established for the purpose of facilitating off-balance sheet arrangements.

ITEM 3. NOT APPLICABLE

ITEM 4. CONTROLS AND PROCEDURES

Evaluation of Disclosure Controls and Procedures

Pursuant to Rule 13a-15(b) and Rule 15d-15(b) under the Exchange Act, the Company’s principal executive and financial officer carried out an evaluation of the effectiveness of the Company’s disclosure controls and procedures (as defined under Rule 13a-15(e) or Rule 15d-15(e) under the Exchange Act) as of the end of the period covered by this Report. Disclosure controls and procedures mean controls and other procedures of an issuer that are designed to ensure that information required to be disclosed by the issuer in the reports that it files or submits under the Exchange Act is recorded, processed, summarized and reported, within the time periods specified in the SEC’s rules and forms. Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed by an issuer in the reports that it files or submits under the Exchange Act is accumulated and communicated to the issuer’s management, including its principal executive and principal financial officers, or persons performing similar functions, as appropriate to allow timely decisions regarding required disclosure. Based on its evaluation, management concluded that as of September 30, 2019, the Company’s disclosure controls and procedures were not effective due to the existence of material weaknesses in internal control over financial reporting, discussed more fully below.

Changes in Internal Control Over Financial Reporting

As disclosed in our Annual Report on Form 10-K for the year ended December 31, 2018, our management concluded that, as of December 31, 2018, the Company’s internal control over financial reporting was not effective due primarily to a lack of internal staffing resulting in a lack segregation of duties, and a lack of evidence of review and oversight of certain financial processes, including processes that have been outsourced to a third-party service organization. Management is currently evaluating the steps that would be necessary to eliminate these material weaknesses.

There were no changes in the Company’s internal control over financial reporting during the fiscal quarter ended September 30, 2019 that materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

PART II - OTHER INFORMATION

ITEMS 1 – 5. NOT APPLICABLE

ITEM 6. EXHIBITS

3.1 Restated Articles of Incorporation of the Registrant (incorporated by reference to Exhibit 3.1 to Form 10-K (File No. 001-31905) for the year ended December 31, 2018 filed on March 21, 2019).

16

3.2	Amendment to Articles of Incorporation of the Registrant (incorporated by reference to Exhibit 3.2 to Form 10-K (File No. 001-31905) for the year ended December 31, 2003 filed on March 19, 2004).
3.3	Articles of Amendment to the Restated Articles of Incorporation of the Registrant (incorporated by reference to Exhibit 3.3 to Form 10-K (File No. 001-31905) for the year ended December 31, 2018 filed on March 21, 2019).
3.4	Amended and Restated By-Laws of the Registrant (adopted as of August 8, 2019) (incorporated by reference to Exhibit 3.1 to Form 8-K (File No. 001-31905) filed on August 9, 2019).
31*	Certification of Lee W. Boyer, President and Treasurer, pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32**	Certification of Lee W. Boyer, President and Treasurer, pursuant to 18 U.S.C. Section 1350 and Section 906 of the Sarbanes-Oxley Act of 2002.
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

*	Filed herewith
**	Furnished herewith

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.

Date: November 7, 2019

CKX LANDS, INC.

By:

/s/ Lee W. Boyer

Lee W. Boyer

President and Treasurer

(Principal executive and financial officer)

17

EX-31

Exhibit 31

CERTIFICATION

I, Lee W. Boyer, certify that:

1.	I have reviewed this Form 10-Q for the quarter ended September 30, 2019 (this “report”) of CKX Lands, Inc. (the “registrant”);
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.

Date: November 7, 2019

/s/ Lee W. Boyer

Lee W. Boyer

President and Treasurer

(Principal executive and financial officer)

EX-32

 Exhibit 32

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350 AND

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 ended September 30, 2019 (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.

Dated: November 7, 2019

/s/ Lee W. Boyer

Lee W. Boyer

President and Treasurer

(Principal executive and financial officer)

XML

Note 3 - Fair Value of Financial Instruments

9 Months Ended

Sep. 30, 2019

Notes to Financial Statements

Fair Value Disclosures [Text Block]

Note

3

:      Fair Value of Financial Instruments

ASC

820

Fair Value Measurements and Disclosures (“ASC

820”

), defines fair value, establishes a framework for measuring fair value and enhances disclosures about fair value measurements. It defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. ASC

820

also establishes a fair value hierarchy which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The standard describes

three

levels of inputs that

may

be used to measure fair value:

Level

1:

Observable inputs such as quoted prices (unadjusted) in active markets for identical assets or liabilities.

Level

2:

Inputs other than quoted prices that are observable for the asset or liability, either directly or indirectly. These include quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets or liabilities that are

not

active; and model-driven valuations whose inputs are observable or whose significant value drivers are observable. Valuations

may

be obtained from, or corroborated by,

third

-party pricing services.

Level

3:

Unobservable inputs to measure fair value of assets and liabilities for which there is little, if any market activity at the measurement date, using reasonable inputs and assumptions based upon the best information at the time, to the extent that inputs are available without undue cost and effort.

The following methods and assumptions were used to estimate the fair value of each class of financial instruments for which it was practical to estimate that value:

Class	Methods and/or Assumptions
Cash and cash equivalents:	Carrying value approximates fair value due to its readily convertible characteristic.
Certificate of Deposit:	Held until maturity and recorded at amortized cost which approximates fair value.
Equity Investment in mutual funds:	Carrying value adjusted to and presented at fair market value.

The estimated fair value of the Company's financial instruments are as follows:

			September 30, 2019				December 31, 2018
Financial Assets:	Level		Carrying Value		Fair Value		Carrying Value		Fair Value
Cash and cash equivalents		1	$	2,940,360	$	2,940,360	$	1,860,736	$	1,860,736
Certificate of deposit - short term		1		3,173,000		3,173,000		3,370,000		3,370,000
Certificate of deposit - long term		1		-		-		725,000		725,000
Equity investment in mutual funds		1		249,197		249,436		244,832		244,825
Total			$	6,362,557	$	6,362,796	$	6,200,568	$	6,200,561

XML

Note 5 - Segment Reporting (Tables)

9 Months Ended

Sep. 30, 2019

Notes Tables

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

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2019			2018			2019			2018
Revenues:
Oil and gas	$	174,097		$	178,640		$	408,029		$	464,895
Timber sales		16,717			56,929			31,198			411,936
Surface revenue		37,523			22,127			159,393			121,592
Total segment revenues		228,337			257,696			598,620			998,423
Cost and expenses:
Oil and gas costs		20,196			18,435			48,364			48,378
Timber costs		9,292			15,212			14,376			50,591
Surface costs		581			10,717			1,274			25,220
Total segment costs and expenses		30,069			44,364			64,014			124,189
Income from operations:
Oil and gas		153,901			160,205			359,665			416,517
Timber		7,425			41,717			16,822			361,345
Surface		36,942			11,410			158,119			96,372
Total segment income from operations		198,268			213,332			534,606			874,234
Other income (expense) before income taxes		(115,193	)		(111,115	)		(307,785	)		529,639
Income before income taxes	$	83,075		$	102,217		$	226,821		$	1,403,873

	Nine Months Ended		Year Ended
	September 30,		December 31,
	2019		2018
Identifiable Assets, net of accumulated depreciation
Timber	$	2,184,661	$	2,162,390
General corporate assets		13,614,268		13,439,611
Total		15,798,929		15,602,001
Capital expenditures:
Timber		22,560		45,067
Surface		-		4,900
General corporate assets		-		5,471
Total segment costs and expenses		22,560		55,438
Depreciation and depletion
Oil and gas		-		-
Timber		288		1,858
General corporate assets		1,517		2,027
Total	$	1,805	$	3,885

XML

Note 5 - Segment Reporting

9 Months Ended

Sep. 30, 2019

Notes to Financial Statements

Segment Reporting Disclosure [Text Block]

Note

5

:      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 tables below present financial information for the Company’s

three

operating business segments:

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2019			2018			2019			2018
Revenues:
Oil and gas	$	174,097		$	178,640		$	408,029		$	464,895
Timber sales		16,717			56,929			31,198			411,936
Surface revenue		37,523			22,127			159,393			121,592
Total segment revenues		228,337			257,696			598,620			998,423
Cost and expenses:
Oil and gas costs		20,196			18,435			48,364			48,378
Timber costs		9,292			15,212			14,376			50,591
Surface costs		581			10,717			1,274			25,220
Total segment costs and expenses		30,069			44,364			64,014			124,189
Income from operations:
Oil and gas		153,901			160,205			359,665			416,517
Timber		7,425			41,717			16,822			361,345
Surface		36,942			11,410			158,119			96,372
Total segment income from operations		198,268			213,332			534,606			874,234
Other income (expense) before income taxes		(115,193	)		(111,115	)		(307,785	)		529,639
Income before income taxes	$	83,075		$	102,217		$	226,821		$	1,403,873

	Nine Months Ended		Year Ended
	September 30,		December 31,
	2019		2018
Identifiable Assets, net of accumulated depreciation
Timber	$	2,184,661	$	2,162,390
General corporate assets		13,614,268		13,439,611
Total		15,798,929		15,602,001
Capital expenditures:
Timber		22,560		45,067
Surface		-		4,900
General corporate assets		-		5,471
Total segment costs and expenses		22,560		55,438
Depreciation and depletion
Oil and gas		-		-
Timber		288		1,858
General corporate assets		1,517		2,027
Total	$	1,805	$	3,885

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, 2018.

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.

XML

Document And Entity Information - shares	9 Months Ended
	Sep. 30, 2019	Nov. 01, 2019
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	Non-accelerated Filer
Entity Current Reporting Status	Yes
Entity Emerging Growth Company	false
Entity Small Business	true
Entity Common Stock, Shares Outstanding (in shares)		1,942,495
Entity Shell Company	false
Document Type	10-Q
Document Period End Date	Sep. 30, 2019
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	Q3
Amendment Flag	false
Title of 12(b) Security	Common Stock with no par value

XML

Significant Accounting Policies (Policies)

9 Months Ended

Sep. 30, 2019

Accounting Policies [Abstract]

Basis of Accounting, Policy [Policy Text Block]

Basis of Presentation

The accompanying unaudited interim financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States of America, pursuant to the rules and regulations of the Securities and Exchange Commission. Certain information and footnote disclosures have been omitted pursuant to such rules and regulations. In the opinion of management, the accompanying financial statements include normal recurring adjustments that are necessary for a fair presentation of the results for the interim periods presented. These financial statements should be read in conjunction with our audited financial statements and notes thereto for the fiscal year ended

December 31, 2018

included in our Annual Report on Form

10

-K. The results of operations for the

three

and

nine

months ended

September 30, 2019

are

not

necessarily indicative of results to be expected for the full fiscal year or any other periods.

The preparation of the financial statements in conformity with U.S. generally accepted accounting principles requires management to make a number of estimates and judgments that affect the reported amounts of assets, liabilities, expenses, and related disclosures. Actual results

may

differ from these estimates.

Certain prior period amounts have been reclassified for consistency with the current period presentation. These reclassifications had

no

effect on the reported results of operations.

Concentration Risk, Credit Risk, Policy [Policy Text Block]

Concentration of Credit Risk

The Company maintains its cash balances in

seven

financial institutions. The amount on deposit in each financial institution is insured by the Federal Deposit Insurance Corporation up to

$250,000.

Cash and Cash Equivalents, Policy [Policy Text Block]

Cash Equivalents

Cash equivalents are highly liquid debt instruments with original maturities of

three

months or less when purchased.

Certificates of Deposit [Policy Text Block]

Certificate of Deposits

Certificates of deposit have maturities greater than

three

months when purchased, in amounts

not

greater than

$250,000.

All certificates of deposit are held until maturity and recorded at cost which approximates fair value. Certificates of deposit mature through

2020.

Certificates of deposit with a maturity of

one

year or less are classified as short-term. Certificates of deposit with a maturity of more than

one

year are classified as long-term.

Investment, Policy [Policy Text Block]

Equity Investment

In

January 2016,

the FASB issued ASU

2016

-

01,

“Financial Instruments – Overall (Subtopic

825

-

10

): Recognition of Financial Assets and Financial Liabilities,” (ASU

2016

-

01

),

which makes targeted amendments to the guidance for recognition, measurement, presentation and disclosure of financial instruments.  The guidance under ASU

2016

-

01

requires equity investments, other than equity method investments, to be measured at fair value with changes in fair value recognized in net income.  As of

September 30, 2019,

and

December 31, 2018,

the Company classified

$249,436

and

$244,825,

respectively, of mutual funds as equity securities.  The Company invests in ultra-short, high quality U.S. dollar money market funds, foreign funds, and obligations issued by the U.S. Government. The Company did

not

hold any equity investments until the

fourth

quarter of

2018,

accordingly, there are

no

effects on the Company’s investments from the adoption of ASU

2016

-

01.

Receivable [Policy Text Block]

Accounts Receivable

The Company’s accounts receivable consist of incomes received after quarter-end for royalties produced prior to quarter-end.  When there are royalties that have

not

been received at the time of the preparation of the financial statements for months in the prior quarter, the Company estimates the amount to be received based on the average of the most recent

12

month’s royalties that were received from that particular well.  The Company does

not

maintain an allowance for doubtful accounts because other than the accrual for earned but

not

received royalties, it has

no

accounts receivable.

Property, Plant and Equipment, Policy [Policy Text Block]

Property, Building and Equipment

Property, building, and equipment is stated at cost. Major additions are capitalized. Maintenance and repairs are charged to income as incurred. Depreciation is computed on the straight-line and accelerated methods over the following estimated useful lives of the assets:

Furniture and equipment (in years)	5	-	7
Land improvements (in years)

15

Impairment or Disposal of Long-Lived Assets, Policy [Policy Text Block]

Impairment of Long-lived Assets

Long-lived assets, such as land, timber and property, buildings, and equipment, are reviewed for impairment whenever events or changes in circumstances indicate the carrying amount of an asset

may

not

be recoverable. If events or circumstances arise that require a long-lived asset to be tested for potential impairment, the Company

first

compares undiscounted cash flows expected to be generated by the asset to its carrying value. If the carrying amount of the long-lived asset is

not

recoverable on an undiscounted cash flow basis, an impairment charge is recognized to the extent that the carrying value exceeds the fair value. Fair value

may

be determined through various valuation techniques including quoted market prices,

third

-party independent appraisals and discounted cash flow models. The Company recorded

no

impairment charges during the

nine

months ended

September 30, 2019

and

2018.

Revenue from Contract with Customer [Policy Text Block]

Revenue Recognition

Effective

January 1, 2018,

we adopted ASU

2014

-

09,

Revenue from Contracts with Customers (Topic

606

). Under the new standard, we recognize revenues when the following criteria are met: (i) persuasive evidence of a contract with a customer exists, (ii) identifiable performance obligations under the contract exist, (iii) the transaction price is determinable for each performance obligation, (iv) the transaction price is allocated to each performance obligation, and (v) the performance obligations are satisfied. We derive a majority of our revenues from oil and gas royalties, timber sales, and surface leases. Surface leases are

not

within the scope of ASC

606.

See Note

6

for more detailed information about the Company’s reportable segments.

Oil and Gas

Oil and gas revenue is generated through customer contracts, where we provide the customer access to a designated tract of land upon which the customer performs exploration, extraction, production and ultimate sale of the oil and gas. The Company receives royalties on all oil and gas produced by the customer. The performance obligation identified in oil and gas related contracts is the production of oil and gas on the designated tract of land. The performance obligation is satisfied at a point in time, which is when the customer produces oil and gas. The transaction price is comprised of fixed fees (royalties) on all oil and gas produced. The Company accrues monthly royalty revenues based upon estimates and adjusts to actual as the Company receives payments. Net accrued royalty income was

$111,915

and

$93,594

as of

September 30, 2019

and

December 31, 2018,

respectively. There are

no

capitalized contract costs associated with oil and gas contracts. The accounting of royalty income remains largely unchanged upon implementation of ASC

606.

Timber

Timber revenue is generated through customer contracts executed as a pay-as-cut arrangement, where the customer acquires the right to harvest specified timber on a designated tract for a set period of time at agreed-upon unit prices. The performance obligation identified in timber related contracts is the severing of a single tree.

We satisfy our performance obligation when timber is severed, at which time revenue is recognized. The transaction price for timber sales is determined using contractual rates applied to harvest volumes. The Company

may

receive a deposit at the time of entering into a stumpage agreement and this deposit is recorded in trade payables and accrued expenses until earned. The Company held stumpage agreement deposits of

$54,300

at

September 30, 2019

and

December 31, 2018.

There are

no

capitalized contract costs associated with timber contracts. The accounting of timber revenue remains largely unchanged upon implementation of ASC

606.

Surface

Surface revenue is earned through annual leases for agricultural and hunting activities and the Company records revenues evenly over the term of these leases.  Surface revenues from these sources are recurring on an annual basis.  Unearned surface revenues are recorded in trade payables and accrued expenses and were

$94,741

and

$58,893

at

September 30, 2019,

and

December 31, 2018,

respectively.

Surface revenue is also earned through right of way and related temporary workspace leases, both of which are

not

usual in occurrence and are

not

recurring sources of revenue. Generally, a right of way lease relates to either a utility or pipeline right of way that is a permanent servitude or exists for fixed periods of time greater than

thirty

years. The Company retains ownership of the land and the servitude is limited to the use of the surface. Revenue is recorded at the time of the agreement’s execution date. For income tax purposes, these types of agreements are treated as sales of business assets.

Other sources of surface revenue can be commercial activities leases and sales of surface minerals, such as dirt.

Earnings Per Share, Policy [Policy Text Block]

Basic and Diluted Earnings per share

Net earnings per share is provided in accordance with FASB ASC

260

-

10,

"Earnings per Share". Basic earnings per share is computed by dividing earnings available to common stockholders by the weighted average number of common shares outstanding during the period. Diluted income per share gives effect to all dilutive potential common shares outstanding during the period. Dilutive income per share excludes all potential common shares if their effect is anti-dilutive. As of

September 30, 2019,

and

2018

there were

no

dilutive shares outstanding.

Stockholders' Equity, Policy [Policy Text Block]

Dividends

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 the current economic conditions among other information deemed relevant. Dividends paid per common share are based on the weighted average number of shares of common stock outstanding during the period. The Company declared and paid a dividend of

$233,099

during the

nine

months ended

September 30, 2018.

No

dividends were declared during the

nine

months ended

September 30, 2019.

Pursuant to a dividend reversion clause in the Company’s Articles of Incorporation, dividends

not

claimed within

one

year after the dividend becomes payable will expire and revert in full ownership to the Company and the Company’s obligation to pay such dividend will cease. Any dividend reversions are recorded in equity upon receipt.

New Accounting Pronouncements, Policy [Policy Text Block]

Recent Accounting Pronouncements

In

February 2016,

the FASB issued ASU 

2016

-

02,

 which amended the accounting treatment for leases. Lessees (for capital and operating leases) and lessors (for sales-type leases, direct financing leases and operating leases) must apply a modified retrospective transition approach for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements. The modified retrospective approach would

not

require any transition accounting for leases that expired before the earliest comparative period presented. Lessees and lessors

may

not

apply a full retrospective transition approach. In

July 2018,

the FASB issued ASU 

2018

-

10

 and ASU 

2018

-

11.

 ASU 

2018

-

10

 provides certain areas for improvement in ASU 

2016

-

02

 and ASU 

2018

-

11

 provides an additional optional transition method by allowing entities to initially apply the new leasing standard at the adoption date and recognize a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. The new leasing standard is effective for fiscal years beginning after

December 

15,

2018,

including interim periods within those fiscal years. The Company adopted this standard as of

January 1, 2019.

The Company reviewed its service agreements and other arrangements and evaluated whether they met the definition of a lease under ASU 

2016

-

02.

The Company determined that the adoption of this standard would have

no

impact on its financial statements.

There are various other updates recently issued, most of which represented technical corrections to the accounting literature or application to specific industries and are

not

expected to have a material impact on the Company’s financial position, results of operations or cash flows.

XML

Statements of Changes in Stockholders Equity (Unaudited) - USD ($)	Common Stock [Member]	Retained Earnings [Member]	Total
Balances (in shares) at Dec. 31, 2017	1,942,495
Balances at Dec. 31, 2017	$ 59,335	$ 14,256,226	$ 14,315,561
Net income		1,074,464	1,074,464
Dividends paid		(233,099)	(233,099)
Balances (in shares) at Sep. 30, 2018	1,942,495
Balances at Sep. 30, 2018	$ 59,335	15,097,592	15,156,927
Balances (in shares) at Jun. 30, 2018	1,942,495
Balances at Jun. 30, 2018	$ 59,335	15,012,192	15,071,527
Net income		85,400	85,400
Balances (in shares) at Sep. 30, 2018	1,942,495
Balances at Sep. 30, 2018	$ 59,335	15,097,592	15,156,927
Balances (in shares) at Dec. 31, 2018	1,942,495
Balances at Dec. 31, 2018	$ 59,335	15,138,187	15,197,522
Net income		186,962	186,962
Balances (in shares) at Sep. 30, 2019	1,942,495
Balances at Sep. 30, 2019	$ 59,335	15,325,149	15,384,484
Balances (in shares) at Jun. 30, 2019	1,942,495
Balances at Jun. 30, 2019	$ 59,335	15,267,179	15,326,514
Net income		57,970	57,970
Balances (in shares) at Sep. 30, 2019	1,942,495
Balances at Sep. 30, 2019	$ 59,335	$ 15,325,149	$ 15,384,484

XML

Note 2 - Certificates of Deposit (Details Textual) - USD ($)	9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Dec. 31, 2018
Certificates Of Deposit Maximum Value Per Deposit	$ 250,000
Certificates of Deposit, at Carrying Value, Current and Noncurrent	3,173,000		$ 4,095,000
Payments to Acquire Investments, Total	4,365
Certificates of Deposit [Member]
Payments to Acquire Investments, Total	1,468,000	3,145,000
Proceeds from Sale, Maturity and Collection of Investments, Total	$ 2,390,000	$ 2,662,890

XML

Note 5 - Segment Reporting (Details Textual)	3 Months Ended		9 Months Ended
	Sep. 30, 2019 USD ($)	Sep. 30, 2018 USD ($)	Sep. 30, 2019 USD ($)	Sep. 30, 2018 USD ($)
Number of Operating Segments			3
Revenues, Total	$ 228,337	$ 257,696	$ 598,620	$ 998,423
Intersegment Eliminations [Member]
Revenues, Total			$ 0	$ 0

XML

Note 1 - Significant Accounting Policies and Recent Accounting Pronouncements - Useful Life of Property, Plant, and Equipment (Details)	6 Months Ended
	Sep. 30, 2019
Furniture and Equipment [Member]
Useful life (Year)
Furniture and Equipment [Member] | Minimum [Member]
Useful life (Year)	5 years
Furniture and Equipment [Member] | Maximum [Member]
Useful life (Year)	7 years
Land and Land Improvements [Member]
Useful life (Year)	15 years
Land and Land Improvements [Member] | Minimum [Member]
Useful life (Year)
Land and Land Improvements [Member] | Maximum [Member]
Useful life (Year)

XML

Note 4 - Property and Equipment - Property and Equipment (Details) - USD ($)	Sep. 30, 2019	Dec. 31, 2018
Land	$ 7,023,053	$ 7,051,412
Timber	2,184,661	2,162,390
Building and equipment	108,602	108,602
Total, before accumulated depreciation	9,316,316	9,322,404
Accumulated depreciation	(77,933)	(76,416)
Total	$ 9,238,383	$ 9,245,988

XML

Note 4 - Property and Equipment

9 Months Ended

Sep. 30, 2019

Notes to Financial Statements

Property, Plant and Equipment Disclosure [Text Block]

Note

4

:      Property and Equipment

Property and equipment consisted of the following:

	September 30,			December 31,
	2019			2018
Land	$	7,023,053		$	7,051,412
Timber		2,184,661			2,162,390
Building and equipment		108,602			108,602
		9,316,316			9,322,404
Accumulated depreciation		(77,933	)		(76,416	)
Total	$	9,238,383		$	9,245,988

During the

nine

months ended

September 30, 2019

and

2018,

the Company had a gain on sale of land of

$80,876

and

$881,654,

respectively. For the

nine

months ended

September 30, 2018,

$767,147

of the gain represented gain on the sale of an undivided

1/6th

ownership interest in land.

Depreciation expense was

$1,517

for the

nine

months ended

September 30, 2019

and

2018.

Depletion expense was

$288

and

$13,896

for the

nine

months ended

September 30, 2019

and

2018,

respectively.

XML

Note 8 - Concentrations

9 Months Ended

Sep. 30, 2019

Notes to Financial Statements

Concentration Risk Disclosure [Text Block]

Note

8

:      Concentrations

Revenue from customers representing

5%

or more of total revenue for the

nine

months ended

September 30, 2019

and

2018,

respectively were:

	Nine Months Ended September 30,
Count	2019		2018
1	$	82,644	$	254,018
2		46,267		117,589
3		41,213		93,563
4		38,333		72,557
5		38,246		44,316
6		30,293		-

XML

Statements of Operations (Unaudited) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Revenues:
Total revenue	$ 228,337	$ 257,696	$ 598,620	$ 998,423
Costs, expenses and (gains):
General and administrative expense	143,198	136,366	471,668	402,674
Depreciation expense	507	1,050	1,517	1,517
Gain on sale of land			(80,876)	(881,654)
Total costs, expenses and (gains)	173,774	181,780	456,323	(353,274)
Income from operations	54,563	75,916	142,297	1,351,697
Interest income	28,512	26,301	84,524	52,176
Income before income taxes	83,075	102,217	226,821	1,403,873
Federal and state income tax expense:
Current	25,105	16,817	39,859	329,409
Deferred
Total income taxes	25,105	16,817	39,859	329,409
Net income	57,970	85,400	186,962	1,074,464
Dividends paid				(233,099)
Net income available to common shareholders	57,970	85,400	186,962	841,366
Oil and Gas [Member]
Revenues:
Revenues from customers	174,097	178,640	408,029	464,895
Costs, expenses and (gains):
Cost of goods and services sold	20,196	18,435	48,364	48,378
Timber [Member]
Revenues:
Revenues from customers	16,717	56,929	31,198	411,936
Costs, expenses and (gains):
Cost of goods and services sold	9,292	15,212	14,376	50,591
Surface Leases, Unrelated Parties [Member]
Revenues:
Revenues, leases	27,940	22,127	130,644	109,133
Surface Leases, Related Parties [Member]
Revenues:
Revenues, leases	9,583		28,749	12,459
Surface Leases [Member]
Costs, expenses and (gains):
Cost of goods and services sold	$ 581	$ 10,717	$ 1,274	$ 25,220

XML

Note 2 - Certificates of Deposit

9 Months Ended

Sep. 30, 2019

Notes to Financial Statements

Certificates Of Deposit Disclosure[Text Block]

Note

2

:      Certificates of Deposit

The Company has certificates of deposit for investment purposes. Certificates of deposit have maturities greater than 

three

 months when purchased, in amounts 

not

 greater than 

$250,000.

 All certificates of deposit are held until maturity and recorded at cost which approximates fair value. Certificates of deposit mature through 

August

of

2020.

Total certificates of deposit were

$3,173,000

and

$4,095,000

as of

September 30, 2019

and

December 31, 2018,

respectively. Purchases of certificates of deposit were

$1,468,000

and

$3,145,000

for the

nine

months ended

September 30, 2019

and

2018,

respectively. Proceeds from the maturity of certificates of deposit were

$2,390,000

and

$2,662,890

for the

nine

months ended

September 30, 2019

and

2018,

respectively.

XML

Note 4 - Property and Equipment (Tables)

9 Months Ended

Sep. 30, 2019

Notes Tables

Property, Plant and Equipment [Table Text Block]

	September 30,			December 31,
	2019			2018
Land	$	7,023,053		$	7,051,412
Timber		2,184,661			2,162,390
Building and equipment		108,602			108,602
		9,316,316			9,322,404
Accumulated depreciation		(77,933	)		(76,416	)
Total	$	9,238,383		$	9,245,988

XML

Note 5 - Segment Reporting - Segmented Operations Information (Details) - USD ($)	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018	Dec. 31, 2018
Revenues, Total	$ 228,337	$ 257,696	$ 598,620	$ 998,423
Total costs, expenses and (gains)	173,774	181,780	456,323	(353,274)
Income from operations	54,563	75,916	142,297	1,351,697
Income before income Taxes	83,075	102,217	226,821	1,403,873
Total assets	15,798,929		15,798,929		$ 15,602,001
Capital Expenditures			22,560		55,438
Oil and Gas [Member]
Revenues from customers	174,097	178,640	408,029	464,895
Timber [Member]
Revenues from customers	16,717	56,929	31,198	411,936
Operating Segments [Member]
Revenues, Total	228,337	257,696	598,620	998,423
Total costs, expenses and (gains)	30,069	44,364	64,014	124,189
Income from operations	198,268	213,332	534,606	874,234
Other income (expense) before income taxes	(115,193)	(111,115)	(307,785)	529,639
Income before income Taxes	83,075	102,217	226,821	1,403,873
Total assets	15,798,929		15,798,929		15,602,001
Depreciation and Depletion			1,805		3,885
Operating Segments [Member] | Oil And Gas Segment [Member]
Total costs, expenses and (gains)	20,196	18,435	48,364	48,378
Income from operations	153,901	160,205	359,665	416,517
Depreciation and Depletion
Operating Segments [Member] | Oil And Gas Segment [Member] | Oil and Gas [Member]
Revenues from customers	174,097	178,640	408,029	464,895
Operating Segments [Member] | Timber Segment [Member]
Total costs, expenses and (gains)	9,292	15,212	14,376	50,591
Income from operations	7,425	41,717	16,822	361,345
Total assets	2,184,661		2,184,661		2,162,390
Capital Expenditures			22,560		45,067
Depreciation and Depletion			288		1,858
Operating Segments [Member] | Timber Segment [Member] | Timber [Member]
Revenues from customers	16,717	56,929	31,198	411,936
Operating Segments [Member] | Corporate Segment [Member]
Total assets	13,614,268		13,614,268		13,439,611
Capital Expenditures					5,471
Depreciation and Depletion			1,517		2,027
Operating Segments [Member] | Surface Segment [Member]
Revenues, leases	37,523	22,127	159,393	121,592
Total costs, expenses and (gains)	581	10,717	1,274	25,220
Income from operations	$ 36,942	$ 11,410	158,119	$ 96,372
Capital Expenditures					$ 4,900

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Note 8 - Concentrations (Tables)

9 Months Ended

Sep. 30, 2019

Notes Tables

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

	Nine Months Ended September 30,
Count	2019		2018
1	$	82,644	$	254,018
2		46,267		117,589
3		41,213		93,563
4		38,333		72,557
5		38,246		44,316
6		30,293		-

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Note 3 - Fair Value of Financial Instruments - Financial Instruments (Details) - USD ($)	Sep. 30, 2019	Dec. 31, 2018
Reported Value Measurement [Member]
Total	$ 6,362,557	$ 6,200,568
Reported Value Measurement [Member] | Fair Value, Inputs, Level 1 [Member]
Cash and cash equivalents	2,940,360	1,860,736
Reported Value Measurement [Member] | Fair Value, Inputs, Level 1 [Member] | Certificates of Deposit, Short-term [Member]
Investment	3,173,000	3,370,000
Reported Value Measurement [Member] | Fair Value, Inputs, Level 1 [Member] | Certificates of Deposit, Long-term [Member]
Investment		725,000
Reported Value Measurement [Member] | Fair Value, Inputs, Level 1 [Member] | Mutual Fund [Member]
Investment	249,197	244,832
Estimate of Fair Value Measurement [Member]
Total	6,362,796	6,200,561
Estimate of Fair Value Measurement [Member] | Fair Value, Inputs, Level 1 [Member]
Cash and cash equivalents	2,940,360	1,860,736
Estimate of Fair Value Measurement [Member] | Fair Value, Inputs, Level 1 [Member] | Certificates of Deposit, Short-term [Member]
Investment	3,173,000	3,370,000
Estimate of Fair Value Measurement [Member] | Fair Value, Inputs, Level 1 [Member] | Certificates of Deposit, Long-term [Member]
Investment		725,000
Estimate of Fair Value Measurement [Member] | Fair Value, Inputs, Level 1 [Member] | Mutual Fund [Member]
Investment	$ 249,436	$ 244,825

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Note 8 - Concentrations - Customers Representing 5% or More of Total Revenue (Details) - USD ($)	9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018
Major Customers 1 [Member]
Revenue by customer	$ 82,644	$ 254,018
Major Customers 2 [Member]
Revenue by customer	46,267	117,589
Major Customers 3 [Member]
Revenue by customer	41,213	93,563
Major Customers 4 [Member]
Revenue by customer	38,333	72,557
Major Customers 5 [Member]
Revenue by customer	38,246	44,316
Major Customers 6 [Member]
Revenue by customer	$ 30,293

XML

Balance Sheets (Current Period Unaudited) - USD ($)	Sep. 30, 2019	Dec. 31, 2018
Current assets:
Cash	$ 2,940,360	$ 1,860,736
Certificates of deposit	3,173,000	3,370,000
Equity investment in mutual funds	249,436	244,825
Accounts receivable	111,388	118,463
Prepaid expense and other assets	86,362	36,989
Total current assets	6,560,546	5,631,013
Long-term certificate of deposit		725,000
Property and equipment, net	9,238,383	9,245,988
Total assets	15,798,929	15,602,001
Current liabilities:
Trade payables and accrued expenses	132,041	146,268
Unearned revenue	94,740	58,893
Income tax payable		11,654
Total current liabilities	226,781	216,815
Deferred income tax payable	187,664	187,664
Total liabilities	414,445	404,479
Stockholders' equity:
Common stock, 3,000,000 authorized, no par value, 1,942,495 issued and outstanding as of September 30, 2019 and December 31, 2018	59,335	59,335
Retained earnings	15,325,149	15,138,187
Total stockholders' equity	15,384,484	15,197,522
Total liabilities and stockholders' equity	$ 15,798,929	$ 15,602,001

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Note 6 - Income Taxes

9 Months Ended

Sep. 30, 2019

Notes to Financial Statements

Income Tax Disclosure [Text Block]

Note

6

:      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 those filed in the last

three

years. 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

Statements of Cash Flows (Unaudited) - USD ($)	9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018
CASH FLOWS FROM OPERATING ACTIVITIES
Net income	$ 186,962	$ 1,074,464
Less non-cash expenses included in net income:
Depreciation expense	1,517	1,517
Depletion expense	288	13,896
Gain on sale of land	(80,876)	(881,654)
Unrealized gain on equity investment in mutual funds	(246)
Changes in operating assets and liabilities:
Increase (decrease) in current assets	(42,297)	(67,375)
Increase (decrease) in current liabilities	9,966	(42,759)
Net cash provided by operating activities	75,314	98,089
CASH FLOWS FROM INVESTING ACTIVITIES
Purchases of certificates of deposit	(1,468,000)	(3,145,000)
Proceeds from maturity of certificates of deposit	2,390,000	2,662,890
Purchases of mutual funds	(4,365)
Costs of reforesting timber	(22,560)	(39,317)
Proceeds from the sale of fixed assets	109,235	996,494
Net cash provided by investing activities	1,004,310	475,067
CASH FLOWS FROM FINANCING ACTIVITIES
Dividends paid	0	(233,099)
Net cash used in financing activities		(233,099)
NET INCREASE IN CASH AND RESTRICTED CASH	1,079,624	340,057
Cash and restricted cash, beginning of the period	1,860,736	1,652,404
Cash and restricted cash, end of the period	2,940,360	1,992,461
SUPPLEMENTAL CASH FLOW INFORMATION
Cash paid for interest
Cash paid for income taxes	$ 67,107	$ 355,387

XML

Note 1 - Significant Accounting Policies and Recent Accounting Pronouncements (Tables)

9 Months Ended

Sep. 30, 2019

Notes Tables

Property, Plant and Equipment, Useful Life [Table Text Block]

Furniture and equipment (in years)	5	-	7
Land improvements (in years)		15

XML

Note 7 - Related Party Transactions (Details Textual)		1 Months Ended	3 Months Ended			9 Months Ended
	Apr. 17, 2017 USD ($)	Aug. 31, 2018 USD ($)	Sep. 30, 2019 USD ($)	Mar. 31, 2019 USD ($)	Mar. 31, 2018 USD ($)	Sep. 30, 2019 USD ($)
Stream Wetlands Services [Member] | Exclusive Right to Evaluate and Market Lands For Beneficial Purposes to Compensate for Impact [Member]
Related Party Transaction, Amounts of Transaction	$ 38,333			$ 38,333	$ 38,333
Option to Lease Arrangements, Number of Renewal Periods	1
Stockwell [Member] | Rent Expenses for Office Space and Associated Services [Member]
Operating Lease Monthly Rent		$ 750
Stockwell [Member] | Administrative Assistant and Miscellaneous Offices Supplies, Monthly Expense [Member]
Operating Lease Monthly Rent		$ 2,000
Related Party Transaction, Expenses from Transactions with Related Party			$ 8,468			$ 25,512
Related Party Rent Expense			$ 2,250			$ 6,750

XML

Balance Sheets (Current Period Unaudited) (Parentheticals) - $ / shares $ / shares in Thousands	Sep. 30, 2019	Dec. 31, 2018
Common Stock, no 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
Common Stock, shares outstanding (in shares)	1,942,495	1,942,495

XML

Note 7 - Related Party Transactions

9 Months Ended

Sep. 30, 2019

Notes to Financial Statements

Related Party Transactions Disclosure [Text Block]

Note

7

:      Related Party Transactions

The Company and Stream Wetlands Services, LLC (“Stream Wetlands”) are parties to an option to lease agreement dated

April 17, 2017 (

the “OTL”). The OTL provides Stream Wetlands an option, exercisable through

February 28, 2020,

to lease certain lands from the Company, subject to the negotiation and execution of a mutually acceptable lease form. Stream Wetlands paid the Registrant

$38,333

upon execution of the OTL, and an additional

$38,333

during the quarters ended

March 31, 2018

and

2019.

Stream Wetlands

may

extend the term of the OTL for

one

more year by paying

$38,333

in the

first

quarter of

2020.

Mr. Stream, a director of the Company, is the president of Stream Wetlands.

The Company’s President is a partner in Stockwell, Sievert, Viccellio, Clements, LLP (“Stockwell”). Beginning in

August 2018,

the Company began renting office space from Stockwell. The Company pays Stockwell

$750

per month as rent for office space and associated services,

$2,000

per month to reimburse the firm for an administrative assistant and reimburses Stockwell for miscellaneous office supplies and legal expenses. For the

three

months ended

September 30, 2019,

the Company recorded

$8,468

in total of such expense, of which

$2,250

was rent expense. For the

nine

months ended

September 30, 2019,

the Company recorded

$25,512

in total, of which

$6,750

was rent expense.

XML

Note 1 - Significant Accounting Policies and Recent Accounting Pronouncements

9 Months Ended

Sep. 30, 2019

Notes to Financial Statements

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

Note

1:

      Significant Accounting Policies and Recent Accounting Pronouncements

Significant Accounting Policies

Basis of Presentation

The accompanying unaudited interim financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States of America, pursuant to the rules and regulations of the Securities and Exchange Commission. Certain information and footnote disclosures have been omitted pursuant to such rules and regulations. In the opinion of management, the accompanying financial statements include normal recurring adjustments that are necessary for a fair presentation of the results for the interim periods presented. These financial statements should be read in conjunction with our audited financial statements and notes thereto for the fiscal year ended

December 31, 2018

included in our Annual Report on Form

10

-K. The results of operations for the

three

and

nine

months ended

September 30, 2019

are

not

necessarily indicative of results to be expected for the full fiscal year or any other periods.

The preparation of the financial statements in conformity with U.S. generally accepted accounting principles requires management to make a number of estimates and judgments that affect the reported amounts of assets, liabilities, expenses, and related disclosures. Actual results

may

differ from these estimates.

Certain prior period amounts have been reclassified for consistency with the current period presentation. These reclassifications had

no

effect on the reported results of operations.

Concentration of Credit Risk

The Company maintains its cash balances in

seven

financial institutions. The amount on deposit in each financial institution is insured by the Federal Deposit Insurance Corporation up to

$250,000.

Cash Equivalents

Cash equivalents are highly liquid debt instruments with original maturities of

three

months or less when purchased.

Certificate of Deposits

Certificates of deposit have maturities greater than

three

months when purchased, in amounts

not

greater than

$250,000.

All certificates of deposit are held until maturity and recorded at cost which approximates fair value. Certificates of deposit mature through

2020.

Certificates of deposit with a maturity of

one

year or less are classified as short-term. Certificates of deposit with a maturity of more than

one

year are classified as long-term.

Equity Investment

In

January 2016,

the FASB issued ASU

2016

-

01,

“Financial Instruments – Overall (Subtopic

825

-

10

): Recognition of Financial Assets and Financial Liabilities,” (ASU

2016

-

01

),

which makes targeted amendments to the guidance for recognition, measurement, presentation and disclosure of financial instruments.  The guidance under ASU

2016

-

01

requires equity investments, other than equity method investments, to be measured at fair value with changes in fair value recognized in net income.  As of

September 30, 2019,

and

December 31, 2018,

the Company classified

$249,436

and

$244,825,

respectively, of mutual funds as equity securities.  The Company invests in ultra-short, high quality U.S. dollar money market funds, foreign funds, and obligations issued by the U.S. Government. The Company did

not

hold any equity investments until the

fourth

quarter of

2018,

accordingly, there are

no

effects on the Company’s investments from the adoption of ASU

2016

-

01.

Accounts Receivable

The Company’s accounts receivable consist of incomes received after quarter-end for royalties produced prior to quarter-end.  When there are royalties that have

not

been received at the time of the preparation of the financial statements for months in the prior quarter, the Company estimates the amount to be received based on the average of the most recent

12

month’s royalties that were received from that particular well.  The Company does

not

maintain an allowance for doubtful accounts because other than the accrual for earned but

not

received royalties, it has

no

accounts receivable.

Property, Building and Equipment

Property, building, and equipment is stated at cost. Major additions are capitalized. Maintenance and repairs are charged to income as incurred. Depreciation is computed on the straight-line and accelerated methods over the following estimated useful lives of the assets:

Furniture and equipment (in years)	5	-	7
Land improvements (in years)		15

Impairment of Long-lived Assets

Long-lived assets, such as land, timber and property, buildings, and equipment, are reviewed for impairment whenever events or changes in circumstances indicate the carrying amount of an asset

may

not

be recoverable. If events or circumstances arise that require a long-lived asset to be tested for potential impairment, the Company

first

compares undiscounted cash flows expected to be generated by the asset to its carrying value. If the carrying amount of the long-lived asset is

not

recoverable on an undiscounted cash flow basis, an impairment charge is recognized to the extent that the carrying value exceeds the fair value. Fair value

may

be determined through various valuation techniques including quoted market prices,

third

-party independent appraisals and discounted cash flow models. The Company recorded

no

impairment charges during the

nine

months ended

September 30, 2019

and

2018.

Revenue Recognition

Effective

January 1, 2018,

we adopted ASU

2014

-

09,

Revenue from Contracts with Customers (Topic

606

). Under the new standard, we recognize revenues when the following criteria are met: (i) persuasive evidence of a contract with a customer exists, (ii) identifiable performance obligations under the contract exist, (iii) the transaction price is determinable for each performance obligation, (iv) the transaction price is allocated to each performance obligation, and (v) the performance obligations are satisfied. We derive a majority of our revenues from oil and gas royalties, timber sales, and surface leases. Surface leases are

not

within the scope of ASC

606.

See Note

6

for more detailed information about the Company’s reportable segments.

Oil and Gas

Oil and gas revenue is generated through customer contracts, where we provide the customer access to a designated tract of land upon which the customer performs exploration, extraction, production and ultimate sale of the oil and gas. The Company receives royalties on all oil and gas produced by the customer. The performance obligation identified in oil and gas related contracts is the production of oil and gas on the designated tract of land. The performance obligation is satisfied at a point in time, which is when the customer produces oil and gas. The transaction price is comprised of fixed fees (royalties) on all oil and gas produced. The Company accrues monthly royalty revenues based upon estimates and adjusts to actual as the Company receives payments. Net accrued royalty income was

$111,915

and

$93,594

as of

September 30, 2019

and

December 31, 2018,

respectively. There are

no

capitalized contract costs associated with oil and gas contracts. The accounting of royalty income remains largely unchanged upon implementation of ASC

606.

Timber

Timber revenue is generated through customer contracts executed as a pay-as-cut arrangement, where the customer acquires the right to harvest specified timber on a designated tract for a set period of time at agreed-upon unit prices. The performance obligation identified in timber related contracts is the severing of a single tree.

We satisfy our performance obligation when timber is severed, at which time revenue is recognized. The transaction price for timber sales is determined using contractual rates applied to harvest volumes. The Company

may

receive a deposit at the time of entering into a stumpage agreement and this deposit is recorded in trade payables and accrued expenses until earned. The Company held stumpage agreement deposits of

$54,300

at

September 30, 2019

and

December 31, 2018.

There are

no

capitalized contract costs associated with timber contracts. The accounting of timber revenue remains largely unchanged upon implementation of ASC

606.

Surface

Surface revenue is earned through annual leases for agricultural and hunting activities and the Company records revenues evenly over the term of these leases.  Surface revenues from these sources are recurring on an annual basis.  Unearned surface revenues are recorded in trade payables and accrued expenses and were

$94,741

and

$58,893

at

September 30, 2019,

and

December 31, 2018,

respectively.

Surface revenue is also earned through right of way and related temporary workspace leases, both of which are

not

usual in occurrence and are

not

recurring sources of revenue. Generally, a right of way lease relates to either a utility or pipeline right of way that is a permanent servitude or exists for fixed periods of time greater than

thirty

years. The Company retains ownership of the land and the servitude is limited to the use of the surface. Revenue is recorded at the time of the agreement’s execution date. For income tax purposes, these types of agreements are treated as sales of business assets.

Other sources of surface revenue can be commercial activities leases and sales of surface minerals, such as dirt.

Basic and Diluted Earnings per share

Net earnings per share is provided in accordance with FASB ASC

260

-

10,

"Earnings per Share". Basic earnings per share is computed by dividing earnings available to common stockholders by the weighted average number of common shares outstanding during the period. Diluted income per share gives effect to all dilutive potential common shares outstanding during the period. Dilutive income per share excludes all potential common shares if their effect is anti-dilutive. As of

September 30, 2019,

and

2018

there were

no

dilutive shares outstanding.

Dividends

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 the current economic conditions among other information deemed relevant. Dividends paid per common share are based on the weighted average number of shares of common stock outstanding during the period. The Company declared and paid a dividend of

$233,099

during the

nine

months ended

September 30, 2018.

No

dividends were declared during the

nine

months ended

September 30, 2019.

Pursuant to a dividend reversion clause in the Company’s Articles of Incorporation, dividends

not

claimed within

one

year after the dividend becomes payable will expire and revert in full ownership to the Company and the Company’s obligation to pay such dividend will cease. Any dividend reversions are recorded in equity upon receipt.

Recent Accounting Pronouncements

In

February 2016,

the FASB issued ASU 

2016

-

02,

 which amended the accounting treatment for leases. Lessees (for capital and operating leases) and lessors (for sales-type leases, direct financing leases and operating leases) must apply a modified retrospective transition approach for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements. The modified retrospective approach would

not

require any transition accounting for leases that expired before the earliest comparative period presented. Lessees and lessors

may

not

apply a full retrospective transition approach. In

July 2018,

the FASB issued ASU 

2018

-

10

 and ASU 

2018

-

11.

 ASU 

2018

-

10

 provides certain areas for improvement in ASU 

2016

-

02

 and ASU 

2018

-

11

 provides an additional optional transition method by allowing entities to initially apply the new leasing standard at the adoption date and recognize a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. The new leasing standard is effective for fiscal years beginning after

December 

15,

2018,

including interim periods within those fiscal years. The Company adopted this standard as of

January 1, 2019.

The Company reviewed its service agreements and other arrangements and evaluated whether they met the definition of a lease under ASU 

2016

-

02.

The Company determined that the adoption of this standard would have

no

impact on its financial statements.

There are various other updates recently issued, most of which represented technical corrections to the accounting literature or application to specific industries and are

not

expected to have a material impact on the Company’s financial position, results of operations or cash flows.

XML

Note 3 - Fair Value of Financial Instruments (Tables)

9 Months Ended

Sep. 30, 2019

Notes Tables

Fair Value, by Balance Sheet Grouping [Table Text Block]

			September 30, 2019				December 31, 2018
Financial Assets:	Level		Carrying Value		Fair Value		Carrying Value		Fair Value
Cash and cash equivalents		1	$	2,940,360	$	2,940,360	$	1,860,736	$	1,860,736
Certificate of deposit - short term		1		3,173,000		3,173,000		3,370,000		3,370,000
Certificate of deposit - long term		1		-		-		725,000		725,000
Equity investment in mutual funds		1		249,197		249,436		244,832		244,825
Total			$	6,362,557	$	6,362,796	$	6,200,568	$	6,200,561

XML

Note 1 - Significant Accounting Policies and Recent Accounting Pronouncements (Details Textual) - USD ($) $ / shares in Thousands	9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Dec. 31, 2018
Equity Securities, FV-NI	$ 249,436		$ 244,825
Accounts Receivable, Allowance for Credit Loss, Current	0		0
Impairment of Long-Lived Assets Held-for-use	0
Accrued Royalty Income	111,915		93,594
Deposit Assets, Stumpage Agreements	$ 54,300		54,300
Earnings Per Share, Diluted, Total	$ 0	$ 0
Payments of Ordinary Dividends, Common Stock	$ 0	$ 233,099
Oil and Gas [Member]
Capitalized Contract Cost, Net, Total	0
Timber [Member]
Capitalized Contract Cost, Net, Total	0
Surface Leases [Member] | Accounts Payable and Accrued Liabilities [Member]
Contract with Customer, Liability, Total	94,741		58,893
Mutual Fund [Member]
Equity Securities, FV-NI	$ 249,436		$ 244,825

XML

Note 4 - Property and Equipment (Details Textual) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Gain (Loss) on Disposition of Oil and Gas and Timber Property, Total			$ 80,876	$ 881,654
Depreciation, Total	$ 507	$ 1,050	1,517	1,517
Depletion, Total			288	13,896
Land [Member]
Gain (Loss) on Disposition of Oil and Gas and Timber Property, Total			$ 80,876	881,654
Land [Member] | Partially Owned Properties [Member]
Gain (Loss) on Disposition of Oil and Gas and Timber Property, Total				$ 767,147
Investment Owned, Percent of Net Assets	16.00%		16.00%

XML

Note 6 - Income Taxes (Details Textual) $ in Thousands	Sep. 30, 2019 USD ($)
Unrecognized Tax Benefits, Ending Balance	$ 0
Unrecognized Tax Benefits, Income Tax Penalties and Interest Accrued, Total	$ 0