CKX LANDS, INC. Segments Disclosure

Note 6:

Segment Reporting

 

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

 

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

 

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

 

		Years Ended December 31,
		2025				2024
Identifiable Assets, net of accumulated depreciation
Oil & Gas		$	-			$	-
Surface			-				-
Timber			528,599				2,250,525
General corporate assets			21,757,169				16,596,712
Total		$	22,285,768			$	18,847,237
Capital expenditures:
Oil & Gas		$	-			$	-
Timber			-				-
Surface			-				-
General corporate assets			-				-
Total segment costs and expenses		$	-			$	-
Depreciation and depletion
Oil and gas		$	-			$	-
Timber			126				91
Surface			-				-
General corporate assets			3,109				4,261
Total		$	3,235			$	4,352

 

 

		December 31, 2025
		Oil and Gas				Timber				Surface				Consolidated
Revenues		$	415,469			$	94,825			$	328,249			$	838,543
Cost of Goods Sold			43,303				12,795				8,600				64,698
Gross Profit			372,166				82,030				319,649				773,845

 

		December 31, 2024
		Oil and Gas				Timber				Surface				Consolidated
Revenues		$	417,846			$	22,225			$	1,081,053			$	1,521,124
Cost of Goods Sold			46,436				18,385				533				65,354
Gross Profit			371,410				3,840				1,080,520				1,455,770

 

 

Reconciliation		2025				2024
Total Gross Profit			773,845				1,455,770
Less:
General & Administrative Expense			687,441				1,420,153
Depreciation Expense			3,109				4,261
Gain on Sale of Land			(3,557,868	)			(85,636	)
Income from Operations			3,641,163				116,992
Interest Income			335,539				206,949
Miscellaneous Income			66				13,783
Income before income taxes			3,976,768				337,724

 

There are no intersegment sales reported in the accompanying statements of operations. The accounting policies of the segments are the same as those described in the summary of significant accounting policies. The Company evaluates performance based on income or loss from operations before income taxes excluding nonrecurring gains and losses on equity investment. 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.