Quarterly report [Sections 13 or 15(d)]

Segment Information

v3.26.1
Segment Information
 6 Months Ended
Jun. 30, 2026
Segment Reporting [Abstract]  
Segment Information

Note 17 – Segment Information

 

The Company is an operating, acquisition, and investment business. Subsidiaries in which the Company has a controlling financial interest are consolidated. The Company generally has two reportable segments. The first reportable segment is its classic energy segment, which consists of the Company’s operations and investment in the classic energy space, including its oil and gas royalty interests. The classic energy segment includes the fair value of securities investments in (i) oil and gas, (ii) uranium, and (iii) coal plus the Company’s March 2025 acquisition of three fractional, non-operating royalty interests in oil and gas properties covering approximately one-hundred twenty-one (121) wells in the Spraberry Field of the Permian Basin in West Texas for total consideration of $1,369,899 that is further disclosed at Note 8. The Company’s primary aim for its classic energy segment is to acquire revenue-generating energy assets, such as oil and gas royalties, oil service businesses, or other private energy operating companies, as viable opportunities for such acquisition(s) become available. The second reportable segment consists of the Company’s historic residual operations, which include the fully impaired settlement payments receivable from G Farma and its co-defendants in the amount of $2,539,597 plus $754,921 accrued interest at June 30, 2026, and the operation of subsidiaries Mentor IP, Partner I, Partner II, and TWG. The Company also maintains a gold investment for profit and short-term treasury exchange-traded funds for the purpose of facilitating investment into the Company to support potential future energy acquisitions and to collect low-risk interest to offset inflation, respectively. Additionally, the Company formerly had small investments in futures contracts, investments in securities listed on the NYSE and NASDAQ, an investment in note receivable from a non-affiliated party that was fully impaired on June 11, 2024, and the fair value of convertible notes receivable and accrued interest from NeuCourt, that was exchanged for a NeuCourt SAFE security investment that is carried at cost as a long-term investment and is included with the Company’s long term investments on the Company’s consolidated balance sheet. The gold investment, short-term treasury exchange-traded funds, and the investment in NeuCourt are included in the Corporate and Eliminations section below.

 

Our Chief Operating Decision Maker (“CODM”) is our Chairman and Chief Executive Officer, Chet Billingsley. Our CODM evaluates the performance of the Company’s operating segments on an ongoing weekly basis, and he routinely monitors each segment’s exposure to risk due to potential economic factors, societal trends, and market conditions in order to assess and determine the proper allocation of resources related to segment expenses. Our CODM uses segment operating income (loss) to review monthly, quarterly, and annual segment trends. Additionally, the CODM regularly monitors actual and prospective cash and cash equivalent balances weekly.

 

Routine expenses related to Company’s oil and gas royalty interests within its energy segment were limited to the severance and ad valorem tax liabilities specified below. The Company’s CODM monitors changes in market conditions, commodity prices, production volumes, and other factors, which may materially impact the recoverability of our royalty interests. Costs not allocated to our two reportable segments represent activities associated with the Company’s management and headquarters functions, especially with regard to accounting and audits for the Company and its majority-owned subsidiaries. The Company’s headquarters functions also include monitoring our less than majority positions for value and investment security and reviewing possible acquisition candidates and acquisition assets on an ongoing basis. These costs primarily included administrative expenses, professional service fees, advertising and promotion expenses, travel-related expenses, employee and officer salaries, employee and officer accrued benefits, employee and officer payroll tax expenses, board fees, and depreciation expenses. See Management’s Discussion and Analysis of Financial Condition and Results of Operations, Results of Operations for the three months and six months ended June 30, 2026 compared to the three months and six months ended June 30, 2025, Selling, General, and Administrative Expenses for a further disclosure and discussion of the Company’s management and headquarters related expenses.

 

 

Segment information for our current operating segments is as follows:

 

   

Energy

Segment

     Historic Segment     Corporate and Eliminations     Consolidated  
Three months ended June 30, 2026                                
Net revenue   $ 65,595     $ -     $ -     $ 65,595  
Operating income (loss)     65,595       (160 )     (197,279 )     (131,844 )
Interest and dividend income     59       -       2       61  
Interest expense     -       -       -       -  
Severance and ad valorem taxes     3,264       -       -       3,264  
Property additions     -       -       4,112       4,112  
Fixed asset depreciation and amortization     -       -       1,456       1,456  
Other asset additions     -       -       -       -  
Other asset amortization     34,247       -       -       34,247  
                                 
Three months ended June 30, 2025                                
Net revenue   $ 75,000     $ -     $ -     $ 75,000  
Operating income (loss)     75,000       (442 )     (201,291 )     (126,733 )
Interest and dividend income     7,392       -       1       7,393  
Interest expense     -       -       -       -  
Severance and ad valorem taxes     -       -       -       -  
Property additions     -       -       -       -  
Fixed asset depreciation and amortization     -       -       85       85  
Other asset additions     -       -       -       -  
Other asset amortization     34,247       -       -       34,247  
                                 
Six months ended June 30, 2026                                
Net revenue   $ 108,363     $ -     $ -     $ 108,363  
Operating income (loss)     108,363       (649 )     (499,939 )     (392,225 )
Interest and dividend income     190       -       3       193  
Interest expense     -       -       -       -  
Severance and ad valorem taxes     10,098       -       -       10,098  
Property additions     -       -       4,112       4,112  
Fixed asset depreciation and amortization     -       -       2,303       2,303  
Other asset additions     -       -       -       -  
Other asset amortization     68,495       -       -       68,495  
Total assets     1,237,033       405       1,279,001       2,516,439  
                                 
Six months ended June 30, 2025                                
Net revenue   $ 77,000     $ -     $ -     $ 77,000  
Operating income (loss)     77,000       (622 )     (397,086 )     (320,708 )
Interest and dividend income     37,041       -       3       37,044  
Interest expense     -       -       -       -  
Severance and ad valorem taxes     -       -       -       -  
Property additions     -       -       -       -  
Fixed asset depreciation and amortization     -       -       170       170  
Other asset additions     1,369,889       -       -       1,369,889  
Other asset amortization     34,756       -       -       34,756  
Total assets     1,508,510       1,687       1,456,801       2,966,998  

 

The following table reconciles operating segments and corporate-unallocated operating income (loss) to consolidated income before income taxes for the three and six months ended June 30, 2026 and 2025, as presented in the unaudited condensed consolidated income statements:

 

    2026     2025     2026     2025  
    Three Months Ended
June 30,		     Six Months Ended
June 30,		  
    2026     2025     2026     2025  
Operating income (loss)   $ (131,844 )   $ (126,733 )   $ (392,225 )     (320,708 )
Realized gain (loss) on investment in securities     -       (194,693 )     18,740       (185,147 )
Unrealized gain (loss) on investment in securities     (120,549 )     80,331       (68,143 )     27,794  
Realized gain (loss) on investment in gold     49,886       -       49,886       -  
Realized gain (loss) on investment in futures     116       -       116       -  
Interest and dividend income     61       7,393       193       37,044  
Other income     -       -       20,413       -  
                                 
Income (loss) before income taxes   $ (202,330 )   $ (233,702 )   $ (371,020 )     (441,017 )