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 March 31, 2025 ☐ 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) 2417 Shell Beach ...

Financial Performance - For the fiscal year 2024, the company reported a net income of $250,224, an increase from $142,961 in 2023, driven by a $35,519 increase in total revenue and a $30,155 decrease in general and administrative expenses[102]. - Total revenues for 2024 were $1,521,124, reflecting a 2.4% increase compared to $1,485,605 in 2023, with oil and gas revenues contributing $417,846, timber sales at $22,225, and surface revenues at $1,081,053[103]. - Oil revenues increased by 17.3% to $354,821, while gas revenues surged by 108.1% to $66,672, with total oil and gas revenues accounting for 27% of total revenues in 2024[106]. - The company experienced a decline in timber revenues, which fell by $131,922, representing 1% of total revenues in 2024 compared to 10% in 2023, attributed to timber harvest timing[112]. - Surface revenues increased by $130,249, making up 71% of total revenues in 2024, driven by robust economic activity in the region, including industrial project development[113]. Strategic Initiatives - The company is actively evaluating strategic alternatives to enhance shareholder value, including potential acquisitions and divestitures, and has received preliminary indications of interest from multiple parties regarding the acquisition of the company or its assets[95][96]. - The company plans to continue evaluating commercial, agricultural, and timber lands for acquisition and may consider developing properties for commercial or residential purposes[117]. - The Company is exploring strategic alternatives for growth, including land acquisitions and business combinations[122]. Land and Asset Management - The company has completed and recorded plans for three ranchette-style subdivisions, totaling approximately 575 acres, with 22 out of 39 lots sold as of December 31, 2024[100]. - The company reported a gain on the sale of land of $85,636 in 2024, down from $149,992 in 2023, indicating a decrease in land sale activity[116]. Cash Flow and Financial Position - As of December 31, 2024, the Company had current assets of $9,579,388 and current liabilities of $264,183[119]. - Net cash provided by operating activities decreased by $672,192 to $204,761 for the year ended December 31, 2024, compared to $876,953 for 2023[123]. - Net cash used in investing activities increased significantly to $4,121,020 for the year ended December 31, 2024, from $391,315 in 2023[124]. - The Company had no outstanding debt as of December 31, 2024, and 2023[120]. - Cash and cash equivalents are deemed adequate for projected operations and potential land acquisitions[121]. - Net cash used in financing activities was $208,854 for the year ended December 31, 2024, compared to $87,156 for 2023[125]. - The decrease in cash provided by operating activities was primarily due to a $459,337 decrease in current liabilities[123]. - The Company does not have any off-balance sheet arrangements or relationships with special purpose entities[127]. Accounting Policies - Significant accounting policies are discussed in Note 1 of the audited financial statements[126].

Revenue Performance - Total revenues for the three months ended September 30, 2024, were $171,269, a decrease of approximately 33.9% compared to the same period in 2023[55] - Oil and gas revenues increased by $25,416 to $73,340 for the three months ended September 30, 2024, representing a 53.0% increase year-over-year[55] - Timber revenue decreased by 84.0% to $18,883 for the three months ended September 30, 2024, due to normal business variations in timber customers' harvesting[58] - Surface revenues decreased by 14.8% to $79,046 for the three months ended September 30, 2024, attributed to lower oil and gas delay rental income[59] - Total revenues for the nine months ended September 30, 2024, were $1,340,550, an increase of approximately 68.6% compared to the same period in 2023[60] - Oil and gas revenues for the nine months ended September 30, 2024, increased by $118,506 to $316,986, driven by increased net oil and gas production[61] - Surface revenues increased by 115.3% to $1,002,406 for the nine months ended September 30, 2024, due to three natural gas pipeline right of way agreements[62] Expenses and Cash Flow - General and administrative expenses increased by $85,647 for the nine months ended September 30, 2024, primarily due to increased land research advisory fees[65] - Net cash provided by operating activities decreased to $107,406 for the nine months ended September 30, 2024, down from $252,420 in 2023, primarily due to a decrease in share-based compensation[69] - Net cash used in investing activities increased significantly to $4,126,604 for the nine months ended September 30, 2024, compared to $374,184 in 2023, driven by purchases of certificates of deposits totaling $7,340,723[70] - Net cash used in financing activities was $208,854 for the nine months ended September 30, 2024, attributed to repurchases of common stock, whereas there were no financing activities in 2023[71] Financial Position - Current assets totaled $9,460,950 with current liabilities of $174,134 as of September 30, 2024, indicating a strong liquidity position[67] - The company did not have any off-balance sheet arrangements or relationships with special purpose entities during the nine months ended September 30, 2024[73] - There were no changes in significant accounting policies and estimates during the nine months ended September 30, 2024, compared to the previous year[72] Strategic Initiatives - The Company has initiated a formal process to evaluate strategic alternatives to enhance shareholder value, including potential acquisitions and asset sales[49]

Financial Performance - Total revenue for the three months ended June 30, 2024, was $1,027,434, a significant increase of 177.6% compared to $370,380 for the same period in 2023[6] - Net income for the three months ended June 30, 2024, was $565,278, compared to a net income of $103,228 for the same period in 2023, representing a year-over-year increase of 448.5%[6] - Basic net income per share for the three months ended June 30, 2024, was $0.28, compared to $0.05 for the same period in 2023, indicating a year-over-year increase of 460%[6] - Net income for the six months ended June 30, 2024, was $163,949, compared to a net loss of $134,411 for the same period in 2023[10] - The company’s income before income taxes for the first half of 2024 was $710,756, a significant increase from $137,637 in 2023, reflecting a growth of 417%[26] Revenue Breakdown - Oil and gas revenues reached $161,148 for the three months ended June 30, 2024, up 58.8% from $101,361 in the same period last year[6] - Surface revenue increased to $866,286 for the three months ended June 30, 2024, compared to $258,237 for the same period in 2023, marking a growth of 235.5%[6] - Oil and gas revenues for the first half of 2024 were $161,148, compared to $101,361 in 2023, marking a 59% increase[26] - Oil and gas revenues accounted for 21% of total revenues for the six months ended June 30, 2024, compared to 28% in the same period of 2023[49] - The company’s five largest customers generated revenues of $536,615 and $175,020 for the six months ended June 30, 2024, and 2023, respectively, showing a substantial increase of 206%[29] Expenses and Liabilities - General and administrative expenses rose to $503,118 for the three months ended June 30, 2024, compared to $253,991 in the same period last year, reflecting an increase of 97.8%[6] - The company reported total segment costs and expenses of $17,705 for the first half of 2024, compared to $13,222 in 2023, indicating a rise of 34%[26] - Cash and cash equivalents at the end of the period were $7,866,811, down from $8,386,252 at the end of the previous year[10] - The company had no outstanding debt as of June 30, 2024, with current assets totaling $9,688,496[54] Asset Management - Total stockholders' equity as of June 30, 2024, was $18,484,163, an increase from $18,318,058 as of December 31, 2023[5] - The total liabilities and stockholders' equity as of June 30, 2024, amounted to $18,950,450, compared to $18,813,406 as of December 31, 2023[5] - Total identifiable assets as of June 30, 2024, were $18,950,450, compared to $18,813,406 at the end of 2023[25] Shareholder Activities - The company repurchased 39,012 shares of treasury stock at a cost of $472,602 as of June 30, 2024, compared to 22,946 shares at a cost of $263,748 as of December 31, 2023[5] - Share-based compensation expense recognized for the six months ended June 30, 2024, was $211,010 for restricted stock units, compared to $209,864 in the same period of 2023[31] Strategic Initiatives - The company actively searches for additional real estate for purchase, focusing on southwest Louisiana, with an emphasis on timberland and agricultural land[40] - The company is actively seeking additional undeveloped acres in Southwest Louisiana for potential residential subdivisions[43] - The company has received preliminary indications of interest from multiple parties regarding the potential acquisition of the company or its assets, as part of a strategic evaluation process initiated on August 21, 2023[41] Other Information - The company did not declare any dividends during the six months ended June 30, 2024, and 2023[17] - Depreciation expense remained consistent at $2,130 for both the six months ended June 30, 2024, and 2023[24] - No impairment charges were recorded during the six months ended June 30, 2024, and 2023, indicating stable asset valuations[14] - The company has not made any further awards under the 2021 Stock Incentive Plan during the six months ended June 30, 2024[15] - The company has restated its Articles of Incorporation and amended its By-Laws as of August 10, 2023[63] - The certifications of the President and Chief Financial Officer were filed pursuant to the Sarbanes-Oxley Act of 2002[63] - The report was signed on behalf of CKX Lands, Inc. by W. Gray Stream, the President and Principal Executive Officer[64]

Revenue Performance - For the three months ended March 31, 2024, total revenues decreased to $141,849 from $165,762 in the same period of 2023, representing a decline of 14.4%[17] - Oil and gas revenues increased significantly to $82,500, up 67.7% from $49,195 in the prior year[17] - Timber sales rose to $2,275, reflecting a 19.7% increase from $1,901 in the previous year[17] - Surface revenue dropped to $57,074, a decrease of 50.2% compared to $114,666 in the same period last year[17] - The company reported a gain on the sale of land of $0 for the three months ended March 31, 2024, compared to $149,992 in the same period of 2023[21] Financial Position - Current assets totaled $8,982,131, while current liabilities were $368,394 as of March 31, 2024[22] - Management believes that cash and cash equivalents are adequate for projected operations and potential land acquisitions[23] Operational Management - The company has established relationships with various consultants and attorneys to manage its lands effectively[12] - CKX has small royalty interests in 20 different producing oil and gas fields, with interests ranging from 0.0045% to 7.62%[11] - The company closed the sale of two 40-acre parcels for proceeds of $149,992 during 2023[14]

Revenue Changes - Oil revenues decreased by $152,705 for the year ended December 31, 2023, compared to 2022, due to a decrease in net oil produced and average oil sales price per barrel [75]. - Gas revenues decreased by $76,809 for the year ended December 31, 2023, attributed to a decrease in average price per MCF and net gas produced [75]. - Timber revenues accounted for 10% of total revenues in 2023, down from 20% in 2022, with a decrease of $65,827 year-over-year, primarily due to timber harvest timing [78]. - Surface revenues increased by $662,039 for the year ended December 31, 2023, representing 64% of total revenues, up from 26% in 2022, driven by robust economic activity in the region [79]. Financial Performance - Net cash provided by operating activities increased by $463,262 to $876,953 for the year ended December 31, 2023, compared to $413,691 in 2022, mainly due to increased revenue [86]. - Gain on sale of land was $149,992 for the year ended December 31, 2023, compared to $18,972 in 2022, resulting from the sale of two parcels of land [85]. Assets and Liabilities - The Company had current assets of $9,388,882 and current liabilities of $495,348 as of December 31, 2023 [74]. - The Company has no outstanding debt as of December 31, 2023, and management believes cash and cash equivalents are adequate for projected operations and possible land acquisitions [92]. Strategic Initiatives - The Company is evaluating strategic alternatives to enhance shareholder value, including potential acquisitions and divestitures, as announced on August 21, 2023 [100]. - The Company expects that direct land management and ongoing economic activity in southwest Louisiana may lead to increased surface revenue in fiscal year 2024 [98].

Financial Performance - Total revenue for September 2023 was $259,031, a decrease of 21.5% compared to $330,232 in September 2022[41]. - Net loss for September 2023 was $98,679, an improvement from a net loss of $323,654 in September 2022[44]. - Oil and gas revenue decreased to $47,924 in September 2023 from $188,233 in September 2022, representing a decline of 74.5%[41]. - Timber sales increased to $118,365 in September 2023, up 34.5% from $87,904 in September 2022[41]. - Basic earnings per share for September 2023 was $0.02, compared to a loss of $0.03 in September 2022[41]. - Total segment revenues for the nine months ended September 30, 2023, were $795,173, a decrease of approximately 3.3% from $822,362 in the same period of 2022[80]. - Net income from operations for the nine months ended September 30, 2023, was $763,872, compared to $772,338 for the same period in 2022, indicating a slight decline[80]. - Oil and gas income for the nine months ended September 30, 2023, was $198,480, down from $412,375 in the same period of 2022, reflecting a significant decrease[80]. - Timber sales revenue for the nine months ended September 30, 2023, was $131,048, compared to $198,283 for the same period in 2022, showing a decline[80]. Expenses and Liabilities - General and administrative expenses were $246,268 in September 2023, down 40.1% from $411,189 in September 2022[41]. - Total current liabilities decreased to $118,064 in September 2023 from $267,176 in September 2022, a reduction of 55.9%[40]. - General and administrative expenses decreased by $164,921 for the three months ended September 30, 2023, primarily due to a decrease in stock compensation expense[126]. - Oil and gas costs decreased by $10,801 and $11,923 for the three and nine months ended September 30, 2023, respectively, due to normal year-to-year variations[114]. Cash Flow and Assets - Cash and cash equivalents at the end of September 2023 were $7,026,443, a decrease from $7,382,956 at the end of September 2022[44]. - Net cash provided by operating activities was $252,420 in September 2023, compared to $176,096 in September 2022, an increase of 43.3%[44]. - Net cash provided by operating activities was $252,420 for the nine months ended September 30, 2023, an increase from $176,096 in 2022, primarily due to a decrease in net loss[115]. - Current assets totaled $8,746,578 and current liabilities equaled $118,064 at September 30, 2023[128]. - Identifiable assets as of September 30, 2023, totaled $18,176,133, an increase from $17,687,590 as of December 31, 2022[70]. Strategic Initiatives - The Company announced on August 21, 2023, the initiation of a formal process to evaluate strategic alternatives to enhance shareholder value[140]. - The exploration of strategic alternatives may not lead to a successful transaction, which could adversely affect the company's business and stockholders[152]. Other Financial Metrics - The company reported a gain on the sale of land of $149,992 in September 2023, compared to $5,667 in September 2022[57]. - Gain on sale of land was $149,992 for the nine months ended September 30, 2023, compared to $5,667 in the same period in 2022[127]. - The total fair value of share-based awards was $3,374,002, with $329,131 unrecognized stock-based compensation expense as of September 30, 2023[72]. - Share-based compensation expense recognized for restricted stock units was $315,369 and for performance shares was $420,965 for the nine months ended September 30, 2023[88]. - Depreciation expense for the nine months ended September 30, 2023, was $3,196, compared to $1,901 for the same period in 2022, representing an increase of approximately 68%[68]. - The company has not identified any material changes to the risk factors previously disclosed in its Annual Report for the year ended December 31, 2022[152]. - The report includes certifications from the President and Chief Financial Officer in compliance with the Sarbanes-Oxley Act[153][154].

Revenue Performance - Total revenues for the three months ended June 30, 2023, were $370,380, an increase of approximately 19% compared to the same period in 2022[75]. - Total revenues for the six months ended June 30, 2023, were $536,142, an increase of approximately 9% compared to the same period in 2022[87]. - Oil and gas revenues decreased by $41,851, or 29.8%, for the three months ended June 30, 2023, compared to the same period in 2022[82]. - Oil and gas revenues for the six months ended June 30, 2023, were $150,556, a decrease of 32.8% from $224,142 in the same period in 2022[88]. - Timber revenue was $10,782 for the three months ended June 30, 2023, a decrease of 87.8% from $88,637 in the same period in 2022[85]. - Timber revenue for the six months ended June 30, 2023, was $12,683, down 88.5% from $110,379 in the same period in 2022[91]. - Surface revenues increased by $178,374, or 223.3%, for the three months ended June 30, 2023, primarily due to new pipeline right-of-way payments[86]. - Surface revenues increased by $215,294, or 136.6%, for the six months ended June 30, 2023, due to increased oil and gas delay rentals[93]. - Gain on sale of land was $149,992 for the three months ended June 30, 2023, compared to $0 for the same period in 2022[99]. Costs and Expenses - Timber costs decreased by $244 for the three months ended June 30, 2023, compared to the same period in 2022, but increased by $778 for the six months ended June 30, 2023, due to higher timber management costs[96]. - Surface costs increased by $225 for the three months ended June 30, 2023, but decreased by $4,904 for the six months ended June 30, 2023, primarily due to timing of land repair and maintenance expenses[97]. - General and administrative expenses decreased by $343,305 for the three months ended June 30, 2023, but increased by $131,650 for the six months ended June 30, 2023, mainly due to stock compensation expense changes[98]. Cash Flow and Liquidity - Net cash provided by operating activities was $104,185 for the six months ended June 30, 2023, compared to a cash used of ($139,279) in the same period of 2022, reflecting a decrease in net loss[104]. - Net cash provided by investing activities was $1,133,860 for the six months ended June 30, 2023, primarily from maturity of certificates of deposit and proceeds from the sale of fixed assets[105]. - Current assets totaled $8,589,916 and current liabilities equaled $116,069 at June 30, 2023, indicating strong liquidity[100]. - The company had no outstanding debt as of June 30, 2023, and management believes cash and cash equivalents are adequate for projected operations and possible land acquisitions[101][102]. - The company did not have any off-balance sheet arrangements or special purpose entities during the six months ended June 30, 2023[111]. Strategic Initiatives - The company has closed on the sale of two 40-acre parcels for proceeds of $149,992 during the first six months of 2023[79]. - The company is actively searching for additional real estate for purchase in Louisiana, focusing on timberland and agricultural land[76]. - The Board of Directors is evaluating strategic alternatives for growth, including land acquisitions and business combinations, to enhance shareholder value[103].

Revenue Performance - For the three months ended March 31, 2023, total revenues were $165,762, a decrease of $16,156 or 8.9% compared to $181,918 in the same period of 2022[82]. - Oil and gas revenue decreased by $33,234 or 40.3%, from $82,429 in Q1 2022 to $49,195 in Q1 2023[82]. - Timber sales revenue dropped significantly by $19,842 or 91.3%, from $21,743 in Q1 2022 to $1,901 in Q1 2023[82]. - Surface revenue increased by $36,920 or 47.5%, rising from $77,746 in Q1 2022 to $114,666 in Q1 2023[82]. Expenses - General and administrative expenses rose by $474,954, primarily due to share-based compensation awarded to officers[86]. Real Estate Transactions - The company closed on the sale of two 40-acre parcels for proceeds of $149,992 during Q1 2023[80]. - The company actively seeks additional real estate purchases in Louisiana, focusing on timberland and agricultural land[79]. Dividends and Operations - No dividends were declared during the three months ended March 31, 2023 and 2022[87]. - The company does not explore for oil and gas or operate wells, relying on unrelated third parties for production[76]. Wells and Production - The company received oil and/or gas revenues from 62 wells during both the three months ended March 31, 2023 and 2022[83].

Revenue Performance - The company's total revenues for 2022 were $1,105,494, an increase of approximately 48% compared to 2021 revenues of $744,545[98]. - Oil and gas revenues accounted for 54% of total revenues in 2022, with a significant increase of 63.5% from $364,907 in 2021 to $596,755 in 2022[100]. - Timber revenues increased by $68,872, totaling $219,974 in 2022, driven by improved demand in the regional market[107]. - Surface revenues rose by $60,229, reaching $288,765 in 2022, reflecting increased economic activity in the region[108]. Financial Position - As of December 31, 2022, the company had current assets of $8,307,928 and current liabilities of $267,176, with no outstanding debt[118][119]. - The company has small royalty interests in 20 different producing oil and gas fields, with royalty interests ranging from 0.0045% to 7.62%[87]. Net Income and Loss - The company's net loss for 2022 was $2,137,067, a decrease from net income of $819,349 in 2021, primarily due to lower gains on land sales and stock compensation expenses[97]. Cash Flow - Net cash provided by operating activities increased by $677,364 to $413,691 for the year ended December 31, 2022, compared to a net cash used of ($263,673) in 2021, primarily due to an increase in sales of $360,949 and a decrease in operating expenses[122]. - Net cash used in investing activities was $(498,765) for the year ended December 31, 2022, compared to $1,210,291 in 2021, with significant purchases including $1,000,000 in certificates of deposit and $12,835 in property and equipment[123]. - Net cash used in financing activities was $(176,592) for the year ended December 31, 2022, attributed to repurchases of common stock[124]. Strategic Development - The company is actively developing ranchette-style subdivisions on its lands, having completed plats for three subdivisions on approximately 575 acres[95]. - The company plans to continue evaluating commercial, agricultural, and timber lands for acquisitions and developing properties for commercial or residential purposes[114]. - Management is optimistic about the improvement of stumpage prices and aims to enter into additional stumpage agreements[116]. - The Board of Directors is evaluating strategic alternatives to increase shareholder value, including growth through acquisitions and asset dispositions[121]. Off-Balance Sheet Arrangements - The company does not have any off-balance sheet arrangements or relationships with unconsolidated entities[126].