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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, 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)		(I.R.S. Employer Identification No.)


2417 Shell Beach Drive
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: 2,053,129 shares of common stock are issued and outstanding as of November 1, 2025.

TABLE OF CONTENTS

		Page

PART I.	FINANCIAL INFORMATION

ITEM 1.	FINANCIAL STATEMENTS
	BALANCE SHEETS AS OF SEPTEMBER 30, 2025 AND DECEMBER 31, 2024 (UNAUDITED)
	STATEMENTS OF OPERATIONS FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2025 AND 2024 (UNAUDITED)
	STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2025 AND 2024 (UNAUDITED)
	STATEMENTS OF CASH FLOWS FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2025 AND 2024 (UNAUDITED)
	NOTES TO FINANCIAL STATEMENTS AS OF SEPTEMBER 30, 2025 (UNAUDITED)	1

ITEM 2.	MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS	6

ITEM 3.	QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK	10

ITEM 4.	CONTROLS AND PROCEDURES	10

PART II.	OTHER INFORMATION

ITEM 1	LEGAL PROCEEDINGS	11

ITEM 1A.	RISK FACTORS	11

ITEM 2.	UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS	11

ITEM 3.	DEFAULTS UPON SENIOR SECURITIES	11

ITEM 4.	MINE SAFETY DISCLOSURES	11

ITEM 5.	OTHER INFORMATION	11

ITEM 6.	EXHIBITS	11

SIGNATURES		12

PART I - FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

CKX LANDS, INC.

BALANCE SHEETS

(unaudited)

	September 30,			December 31,
	2025			2024
ASSETS
Current assets:
Cash and cash equivalents	$	7,851,889		$	3,421,576
Certificates of deposit		2,166,088			5,908,491
Accrued accounts receivable		44,401			78,119
Prepaid expense and other assets		177,508			171,202
Assets held for sale		4,504,354			-
Total current assets		14,744,240			9,579,388
Property and equipment, net		4,305,398			9,036,105
Deferred tax asset		109,819			231,744
Total assets	$	19,159,457		$	18,847,237

LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities:
Trade payables and accrued expenses	$	111,639		$	52,420
Unearned revenue		169,459			211,763
Total current liabilities		281,098			264,183
Total liabilities		281,098			264,183

Stockholders' equity:
Common stock, 3,000,000 shares authorized, no par value, 2,102,595 and 2,053,129 shares issued and outstanding, respectively, as of September 30, 2025 and 2,066,044 and 2,027,032 shares issued and outstanding, respectively, as of December 31, 2024		59,335			59,335
Additional paid in capital		3,374,002			3,374,002
Treasury stock, 49,466 and 39,012 shares, at cost, as of September 30, 2025 and December 31, 2024, respectively		(620,216	)		(472,602	)
Retained earnings		16,065,238			15,622,319
Total stockholders' equity		18,878,359			18,583,054
Total liabilities and stockholders' equity	$	19,159,457		$	18,847,237

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

CKX LANDS, INC.

STATEMENTS OF OPERATIONS

(Unaudited)

	Three Months Ended September 30,						Nine Months Ended September 30,
	2025			2024			2025			2024

Revenues:
Oil and gas	$	47,135		$	73,340		$	373,131		$	316,986
Timber sales		94,825			18,883			94,825			21,158
Surface revenue		90,679			79,046			248,803			1,002,406
Total revenue		232,639			171,269			716,759			1,340,550
Costs, expenses and (gains):
Oil and gas costs		5,657			12,958			39,260			36,189
Timber costs		4,833			6,885			9,579			15,706
Surface costs		7,390			240			7,390			240
General and administrative expense		186,883			167,051			548,359			1,233,209
Depreciation expense		711			1,065			2,398			3,196
Gain on sale of land		(86,188	)		-			(275,399	)		(140,582	)
Total costs, expenses and (gains)		119,286			188,199			331,587			1,147,958
Income (loss) from operations		113,353			(16,930	)		385,172			192,592

Interest income		50,401			54,097			218,480			155,196
Miscellaneous income		-			38			66			13,785
Income before income taxes		163,754			37,205			603,718			361,573
Federal and state income tax expense (benefit):
Current		27,548			(13,676	)		38,873			(13,676	)
Deferred		(30,098	)		(3,235	)		121,926			157,184
Total income taxes		(2,550	)		(16,911	)		160,799			143,508
Net income	$	166,304		$	54,116		$	442,919		$	218,065

Net income per share:
Basic	$	0.08		$	0.03		$	0.22		$	0.11
Diluted	$	0.08		$	0.03		$	0.22		$	0.11

Weighted-average shares used in per share calculation:
Basic		2,053,129			2,027,032			2,043,092			2,015,177
Diluted		2,053,129			2,063,583			2,043,092			2,051,728

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

CKX LANDS, INC.

STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY

THREE MONTHS ENDED SEPTEMBER 30, 2025 AND 2024

(Unaudited)

	Common Stock				Treasury			Additional Paid-In		Retained		Total
	Shares		Amount		Stock			Capital		Earnings		Equity
Balances, June 30, 2025		2,102,595	$	59,335	$	(620,216	)	$	3,374,002	$	15,898,934	$	18,712,055
Net income		-		-		-			-		166,304		166,304
Balances, September 30, 2025		2,102,595	$	59,335	$	(620,216	)	$	3,374,002	$	16,065,238	$	18,878,359

	Common Stock							Additional
	Shares		Amount		Treasury Stock			Paid-In Capital		Retained Earnings		Total Equity
Balances, June 30, 2024		2,066,044	$	59,335	$	(472,602	)	$	3,361,386	$	15,536,044	$	18,484,163
Share-based compensation		-		-		-			12,616		-		12,616
Net income		-		-		-			-		54,116		54,116
Balances, September 30, 2024		2,066,044	$	59,335	$	(472,602	)	$	3,374,002	$	15,590,160	$	18,550,895

CKX LANDS, INC.

STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY

NINE MONTHS ENDED SEPTEMBER 30, 2025 AND 2024

(Unaudited)

	Common Stock							Additional
	Shares		Amount		Treasury Stock			Paid-In Capital		Retained Earnings		Total Equity
Balances, December 31, 2024		2,066,044	$	59,335	$	(472,602	)	$	3,374,002	$	15,622,319	$	18,583,054
Issuances under share-based compensation		36,551		-		-			-		-		-
Repurchases of common stock		-		-		(147,614	)		-		-		(147,614	)
Net income		-		-		-			-		442,919		442,919
Balances, September 30, 2025		2,102,595	$	59,335	$	(620,216	)	$	3,374,002	$	16,065,238	$	18,878,359

	Common Stock							Additional
	Shares		Amount		Treasury Stock			Paid-In Capital		Retained Earnings		Total Equity
Balances, December 31, 2023		2,014,283	$	59,335	$	(263,748	)	$	3,150,376	$	15,372,095	$	18,318,058
Issuances under share-based compensation		51,761		-		-			-		-		-
Share-based compensation		-		-		-			223,626		-		223,626
Repurchases of common stock		-		-		(208,854	)		-		-		(208,854	)
Net income		-		-		-			-		218,065		218,065
Balances, September 30, 2024		2,066,044	$	59,335	$	(472,602	)	$	3,374,002	$	15,590,160	$	18,550,895

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

CKX LANDS, INC.

STATEMENTS OF CASH FLOWS

(Unaudited)

	Nine Months Ended
	September 30,
	2025			2024
CASH FLOWS FROM OPERATING ACTIVITIES
Net income	$	442,919		$	218,065
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation expense		2,398			3,196
Depletion expense		126			65
Deferred income tax expense		121,925			157,184
Gain on sale of land		(275,399	)		(140,582	)
Share-based compensation		-			223,626
Changes in operating assets and liabilities:
Decrease (increase) in current assets		27,412			(32,934	)
Increase (decrease) in current liabilities		16,915			(321,214	)
Net cash provided by operating activities		336,296			107,406

CASH FLOWS FROM INVESTING ACTIVITIES
Purchases of certificates of deposit		(6,750,837	)		(7,340,723	)
Maturity of certificates of deposit		10,493,240			3,073,537
Proceeds from the sale of fixed assets		499,228			140,582
Net cash provided by (used in) investing activities		4,241,631			(4,126,604	)

CASH FLOWS FROM FINANCING ACTIVITIES
Repurchases of common stock		(147,614	)		(208,854	)
Net cash used in financing activities		(147,614	)		(208,854	)

NET CHANGE IN CASH AND CASH EQUIVALENTS		4,430,313			(4,228,052	)
Cash and cash equivalents, beginning of the period		3,421,576			7,546,689
Cash and cash equivalents, end of the period	$	7,851,889		$	3,318,637

SUPPLEMENTAL CASH FLOW INFORMATION
Cash paid for interest	$	-		$	-
Cash paid for income taxes	$	-		$	208,999

SUPPLEMENTAL DISCLOSURE OF NON-CASH ACTIVITIES
Reclassification of property, plant and equipment to assets held for sale	$	4,504,354		$	-

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

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, 2024 included in our Annual Report on Form 10-K. The results of operations for the three and nine months ended September 30, 2025 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.

Concentration of Credit Risk

The Company maintains its cash balances in six financial institutions. At times, cash balances may exceed the Federal Deposit Insurance Corporation’s insured limit of $250,000. The Company has not experienced any losses in such accounts and management believes the Company is not exposed to any significant credit risk on its cash balances.

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. During the year ended December 31, 2024, the Company performed a step zero impairment analysis on its long-lived assets and determined there were no qualitative factors that would indicate impairment. No impairment charges were recorded during the nine months ended September 30, 2025 and 2024, respectively.

Share-Based Compensation

We maintain one incentive compensation plan: the 2021 Stock Incentive Plan (the Plan). The Plan provides for the issuance of restricted stock units (RSUs) and performance-based restricted stock units (PSUs) to certain of our employees, non-employee directors and consultants.

For awards that are subject to market conditions, we utilize a binomial-lattice model (i.e., Monte Carlo simulation model), to determine the fair value. The Monte Carlo simulation model utilizes multiple input variables to determine the share-based compensation expense. Awards for the maximum number of shares issuable under the Plan were made on June 13, 2022. No further awards were made under the Plan during the nine months ended September 30, 2025. As of September 30, 2025, there are no longer any unvested awards under the plan.

Share-based compensation expense related to RSUs is expensed over the grant date to the end of the requisite service period using the straight-line method. PSUs are expensed over the grant date to the end of the requisite service period using a model-driven derived service period based upon the median of the price projection scenarios for each performance trigger. The RSUs and PSUs do not have voting rights. We calculate the fair value of our share-based awards on the date of grant.

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. There were no dilutive shares outstanding for the three and nine months ended September 30, 2025. For the three and nine months ended September 30, 2024, dilutive shares attributable to 36,551 vested restricted stock units not released were included in the calculation of diluted earnings per share.

Dividends

The Company does not currently pay dividends on a regular basis. In determining whether to declare a dividend, the Board of Directors takes 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 stock are based on the weighted average number of common stock shares outstanding during the period. No dividends were declared during the nine months ended September 30, 2025 and 2024, respectively.

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 December 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2023-09, “Income Taxes (Topic 740): Improvements to Income Tax Disclosures”, which requires public entities, on an annual basis, to provide disclosure of specific categories in the rate reconciliation table, as well as disclosure of income taxes paid disaggregated by jurisdiction. For public business entities, the amendments in this update are effective for annual periods beginning after December 15, 2024. The amendments in this update should be applied on a prospective basis and retrospective application is permitted. The Company is currently evaluating this ASU to determine its impact on the Company’s disclosures.

In March 2024, the FASB issued ASU 2024-02, “Codification Improvements - Amendments to Remove References to the Concepts Statements”. This ASU contains amendments to the Codification that remove references to various FASB Concepts Statements. The effort facilitates Codification updates for technical corrections such as conforming amendments, clarifications to guidance, simplifications to wording or the structure of guidance, and other minor improvements. This ASU will be effective for fiscal years beginning after December 15, 2024, with early adoption permitted. The Company is currently evaluating the impact of adopting this ASU on its financial statements and disclosures.

In November 2024, the FASB issued ASU No. 2024-03, Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses ("ASU 2024-03"). This ASU requires new financial statement disclosures disaggregating prescribed expense categories within relevant income statement expense captions. ASU 2024-03 will be effective for fiscal years beginning after December 15, 2026, and interim periods beginning after December 15, 2027. Early adoption is permitted. The Company is currently evaluating the impact of adopting the standard.

Note 2: 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 and Methods and/or Assumptions

Cash and cash equivalents: Carrying value approximates fair value due to its readily convertible characteristic.

Certificates of deposit: Carrying value adjusted to and presented at fair market value.

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

			September 30, 2025				December 31, 2024
Financial Assets:	Level		Carrying Value		Fair Value		Carrying Value		Fair Value

Cash and cash equivalents		2	$	7,851,889	$	7,851,889	$	3,421,576	$	3,421,576
Certificates of deposit		2		2,166,088		2,166,088		5,908,491		5,829,337
Total			$	10,017,977	$	10,017,977	$	9,330,067	$	9,250,913

Note 3:

Property and Equipment

Property and equipment consisted of the following:

	September 30,			December 31,
	2025			2024

Land	$	3,621,391		$	6,760,765
Timber		661,589			2,250,525
Equipment		120,874			120,873
		4,403,854			9,132,163
Accumulated depreciation		(98,456	)		(96,058	)
Total	$	4,305,398		$	9,036,105

During the nine months ended September 30, 2025 and 2024, the Company had a gain on sale of land of $275,399 and $140,582, respectively.

Depreciation expense was $2,398 and $3,196 for the nine months ended September 30, 2025 and 2024, respectively.

Depletion expense was $126 and $65 and for the nine months ended September 30, 2025 and 2024, respectively.

Note 4:

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 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 business segments:

	Nine Months Ended September 30,		Year Ended December 31,
	2025		2024
Identifiable Assets, net of accumulated depreciation
Timber	$	661,589		2,250,525
Surface		-		-
General corporate assets		18,497,868		16,596,712
Total		19,159,457		18,847,237

Depreciation and depletion
Oil and gas	$	-	$	-
Timber		126		91
General corporate assets		2,398		4,261
Total	$	2,524	$	4,352

	Three Months Ended September 30, 2025
	Oil and Gas		Timber		Surface		Consolidated
Revenues	$	47,135		94,825		90,679		232,639
Cost of goods sold		5,657		4,833		7,390		17,880
Gross profit		41,478		89,992		83,289		214,759

	Three Months Ended September 30, 2024
	Oil and Gas		Timber		Surface		Consolidated
Revenues	$	73,340		18,883		79,046		171,269
Cost of goods sold		12,958		6,885		240		20,083
Gross profit		60,382		11,998		78,806		151,186

	Nine Months Ended September 30, 2025
	Oil and Gas		Timber		Surface		Consolidated
Revenues	$	373,131		94,825		248,803		716,759
Cost of goods sold		39,260		9,579		7,390		56,229
Gross profit		333,871		85,246		241,413		660,530

	Nine Months Ended September 30, 2024
	Oil and Gas		Timber		Surface		Consolidated
Revenues	$	316,986		21,158		1,002,406		1,340,550
Cost of goods sold		36,189		15,706		240		52,135
Gross profit		280,797		5,452		1,002,166		1,288,415

	Three Months Ended September 30,						Nine Months Ended September 30,
Reconciliation	2025			2024			2025			2024
Total gross profit	$	214,759		$	151,186		$	660,530		$	1,288,415
Less:
General & administrative expense		186,883			167,051			548,359			1,233,209
Depreciation expense		711			1,065			2,398			3,196
Gain on sale of land		(86,188	)		-			(275,399	)		(140,582	)
Income (loss) from operations		113,353			(16,930	)		385,172			192,592
Miscellaneous income		-			38			66			13,785
Interest income		50,401			54,097			218,480			155,196
Income before income taxes		163,754			37,205			603,718			361,573

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 in the Company’s Form 10-K for the year ended December 31, 2024. The Company evaluates performance based on income or loss from operations before income taxes excluding any nonrecurring gains and losses. 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 5:

Income Taxes

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

Note 6:

Related Party Transactions

The Company and Stream Wetlands Services, LLC (“Stream Wetlands”) were parties to an option to lease agreement dated April 17, 2017 (the “OTL”). The OTL provided Stream Wetlands an option to lease certain lands from the Company, subject to the negotiation and execution of a mutually acceptable lease form. On February 28, 2022, Stream Wetlands exercised the OTL and entered into a 25-year lease in exchange for a one-time payment by Stream Wetlands of $38,333. The terms of the lease provide for formulaic contingent payments to the Company based on the amount of revenue generated from activities on the subject property by a third party, with a guaranteed minimum payment of $500,000 in the event that revenue does not meet a minimum threshold. No minimum payment is due unless and until the third party engages in activity on the subject lands, and neither the Company nor Stream Wetlands is able to determine whether that will occur. William Gray Stream, the President and a director of the Company, is the president of Stream Wetlands.

The Company’s President is also the President of Matilda Stream Management Inc. (“MSM”) and the Chief Financial Officer was, until August 2025, the Chief Investment Officer of MSM. MSM provides administrative services to the Company for no compensation.

Note 7:

Concentrations

Revenue from the Company's five largest customers for the nine months ended September 30, 2025 and 2024, respectively were:

	Nine Months Ended September 30,
Count	2025		2024
1	$	191,682	$	536,615
2		94,825		240,578
3		37,640		124,366
4		32,794		49,339
5		30,000		32,988

Note 8:

Share-Based Compensation

During the year ended December 31, 2022, the Company granted to certain employees an aggregate of 76,755 restricted stock units that vested over a three-year period through July 15, 2024 and 280,245 performance shares that vested upon achievement of certain stock price hurdles as measured during the period from July 15, 2020 through July 15, 2024. Each of the time-based and market-condition awards were subject to the recipient’s continued service with us, the terms and conditions of our stock incentive plan and the applicable award agreement.

As of December 31, 2024, 76,755 restricted stock units and 83,345 performance shares had vested, representing a total of 160,100 issuable shares under the Plan. As of December 31, 2024, a total of 123,549 of the issuable shares had been issued to employees, with 36,551 restricted stock units vested and unissued. On July 15, 2024, all 196,900 unvested performance shares awarded to employees under the Plan lapsed without the performance criteria being achieved and were forfeited by the grantees. There are no further unvested awards outstanding under the Plan. The plan participants elected to have the Company withhold shares to cover the employee payroll tax withholdings for the shares issued. As of December 31, 2024, the Company withheld 39,012 shares of the 123,549 shares issued to the employees. The shares are reported as treasury stock on the balance sheets.

On April 16, 2025, 36,551 shares, representing the final tranche of restricted stock units, were issued to the grantees. The recipients elected to have the Company withhold 10,454 shares to cover their respective taxes owed on the award. The shares are reported as treasury stock on the balance sheets.

The share-based compensation expense recognized is included in general and administrative expense in the statements of operations. The total fair value of the awards was $3,374,002 of which $0 was unrecognized stock-based compensation expense as of December 31, 2024 and September 30, 2025.

Note 9:

Assets Held for Sale

On August 14, 2025, the Company entered into a definitive agreement to sell approximately 7,014 acres of land located in multiple Louisiana parishes for $9.23 million in cash. The transaction is expected to close in the fourth quarter of 2025, subject to customary conditions. In connection with the agreement, the Company reclassified the land and timber from Property, Plant and Equipment to Assets Held for Sale. The carrying value of the land and timber was $2.9 million and $1.6 million, respectively, as of August 14, 2025. The reclassification of the assets to Held for Sale did not have an impact on earnings.

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, 2024 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, 2024, filed on March 25, 2025.

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, this Form 10-Q 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.

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, land 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. These commodity prices are affected by numerous factors and uncertainties external to CKX’s business and over which it has no control, including the global supply and demand for oil and gas, and domestic and global economic conditions, among other factors.

CKX has small royalty interests in 20 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 Company’s 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 and on timberland and agricultural land. 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.

On August 21, 2023, the Company announced that the Board had determined to initiate a formal process to evaluate strategic alternatives for the Company to enhance value for stockholders and had retained a financial advisor in connection with the process.

On April 18, 2024, the Company provided an update on the process, noting that it had received preliminary indications of interest from multiple parties related to the potential acquisition of the Company or its assets, and that the Company and its advisors were working with a select group of these parties to provide them with additional information. The Board has formed a subcommittee to provide oversight and management of the process.

Since the April 18, 2024 update, management and the Board subcommittee, together with the Company’s financial advisors, have continued working with interested parties.

As part of management’s desire to maximize value for shareholders through this process, the Company expects to seek to partition, in kind or by sale, ownership of its undivided interests in lands co-owned with others. There can be no assurance that the Company will be successful in reaching a negotiated partition of its co-owned acreage that would avoid the need to seek partition in court.

Additionally, a sale of the Company or all or substantially all of its assets would be subject to a number of conditions and contingencies, including the approval of the Company’s shareholders. There can be no assurance that this process will result in the successful negotiation of a definitive agreement for a transaction or any other strategic outcome, or that the Board will recommend that CKX’s shareholders approve any transaction.

As disclosed in the Company’s Current Report on Form 8-K filed on August 15, 2025, and as discussed below, the Company entered into an Agreement of Purchase and Sale on August 14, 2025, for the sale, subject to the terms and conditions set forth in the agreement, of approximately 7,014 acres of land wholly-owned by the Company in several parishes of the State of Louisiana.

Recent Developments

In 2019, the Company began developing several ranchette-style subdivisions on certain of its lands in Calcasieu and Beauregard Parishes using existing road rights of way. The Company has identified demand in those areas for ranchette-style lots, which consist of more than three acres each, and the Board of Directors and management believe this project will allow the Company to realize a return on its investment in the applicable lands after payment of expenses. The Company has completed and recorded plans for three subdivisions. The three subdivisions are located on approximately 415 acres in Calcasieu Parish and approximately 160 acres in Beauregard Parish and contain an aggregate of 39 lots. As of September 30, 2025, the Company has closed on the sale of 24 of the 39 lots. As of the date of this report the Company is actively marketing the remaining lots.

The Company is working to identify additional undeveloped acres owned by the Company in Southwest Louisiana that would likewise be suitable for residential subdivisions.

During 2024, the Company closed on the sale of one 25-acre ranchette lot in which it had a 100% ownership interest for net proceeds to the Company of $140,582. During the nine months ended September 2025, the Company closed on the sale of two 25-acre lots and one 53-acre lot in Calcasieu parish in which it had a 100% ownership interest for net proceeds to the Company of $499,228, inclusive of a gain on the sales of $275,399.

In August 2025, the Company entered into an Agreement of Purchase and Sale to sell approximately 7,014 acres of land located in multiple Louisiana parishes for $9.2 million in cash. The transaction is expected to close in the fourth quarter of 2025, subject to customary conditions. The land has been reclassified as “Assets Held for Sale” as of the agreement date. We anticipate using the proceeds to strengthen our balance sheet and evaluate strategic opportunities. Until closing, we retain timber harvesting rights under the agreement. We do not expect the transaction to materially impact ongoing operations. The sale may result in a gain or loss depending on final closing adjustments and costs.

Results of Operations

Summary of Results

The Company’s results of operations for the nine months ended September 30, 2025 as compared to the nine months ended September 30, 2024 were driven primarily by increases in oil and gas and timber revenues as well as a decrease in general and administrative expenses, offset by a decrease in surface revenues. The decrease in general and administrative expenses is primarily due to a decrease in professional expenses and salaries and wages, while the decrease in surface revenues is primarily due to lower right of way income during the nine months ended September 30, 2025 as compared to the nine months ended September 30, 2024.

Revenue – Three Months Ended September 30, 2025

Total revenues for the three months ended September 30, 2025 were $232,639, a decrease of approximately 35.8% when compared with the same period in 2024. Total revenue consists of oil and gas, timber, and surface revenues. Components of revenues for the three months ended September 30, 2025 as compared to 2024, are as follows:

	Three Months Ended September 30,
	2025		2024		Change from Prior Year			Percent Change from Prior Year
Revenues:
Oil and gas	$	47,135	$	73,340	$	(26,205	)		(35.7	)%
Timber sales		94,825		18,883		75,942			402.2	%
Surface revenue		90,679		79,046		11,633			14.7	%
Total revenues	$	232,639	$	171,269	$	61,370			35.8	%

Oil and Gas

Oil and gas revenues were 20% and 43% of total revenues for the three months ended September 30, 2025 and 2024, respectively.

CKX received oil and/or gas revenues from 78 and 64 wells during the three months ended September 30, 2025 and 2024, respectively.

Oil and gas revenues decreased for the three months ended September 30, 2025, as compared to the three months ended September 30, 2024, by $26,205. The decrease was due to a decrease in the average oil sales and average gas sales prices as well as a decrease in net oil and gas produced.

Timber

Timber revenue was $94,825 and $18,883 for the three months ended September 30, 2025 and 2024, respectively. The increase in timber revenues was due to normal business variations in timber customers’ harvesting.

Surface

Surface revenues increased for the three months ended September 30, 2025, as compared to the three months ended September 30, 2024, by $11,633. The increase in surface revenue was due to higher oil and gas delay rental income and higher surface lease income, as well as one small right of way payment received in the current quarter.

Revenue – Nine Months Ended September 30, 2025

Total revenues for the nine months ended September 30, 2025 were $716,759, a decrease of approximately 46.5% when compared with the same period in 2024. Total revenue consists of oil and gas, timber, and surface revenues. Components of revenues for the nine months ended September 30, 2025 as compared to 2024, are as follows:

	Nine Months Ended September 30,
	2024		2023		Change from Prior Year			Percent Change from Prior Year
Revenues:
Oil and gas	$	373,131	$	316,986	$	56,145			17.7	%
Timber sales		94,825		21,158		73,667			348.2	%
Surface revenue		248,803		1,002,406		(753,603	)		(75.2	)%
Total revenues	$	716,759	$	1,340,550	$	(623,791	)		(46.5	)%

Oil and Gas

Oil and gas revenues were 52% and 24% of total revenues for the nine months ended September 30, 2025 and 2024, respectively.

CKX received oil and/or gas revenues from 78 and 64 wells during the nine months ended September 30, 2025 and 2024, respectively.

Oil and gas revenues increased for the nine months ended September 30, 2025, as compared to the nine months ended September 30, 2024, by $56,145. The increase was due to an increase in the net oil and gas produced as well as an increase in the average gas sales price, slightly offset by a decrease in the average oil sales price.

Timber

Timber revenue was $94,825 and $21,158 for the nine months ended September 30, 2025 and 2024, respectively. The increase in timber revenues was due to normal business variations in timber customers’ harvesting.

Surface

Surface revenues decreased for the nine months ended September 30, 2025, as compared to the nine months ended September 30, 2024, by $753,603. The decrease in surface revenue was due to lower right of way income during the nine month current period versus the prior year.

Costs and Expenses – Three and Nine Months Ended September 30, 2025

Oil and gas costs decreased for the three months ended September 30, 2025 as compared to the three months ended September 30, 2024 by $7,301. Oil and gas costs increased for the nine months ended September 30, 2025 as compared to the nine months ended September 30, 2024 by $3,071. Oil and gas costs fluctuated proportionately with increased or decreased production.

Timber costs decreased for the three months ended September 30, 2025, as compared to the three months ended September 30, 2024, by $2,052. Timber costs decreased for the nine months ended September 30, 2025, as compared to the nine months ended September 30, 2024, by $6,127. Timber costs are related to general management of the Company’s timberland. The decrease is primarily due to decreased timber management costs.

General and administrative expenses increased for the three months ended September 30, 2025, as compared to the three months ended September 30, 2024, by $19,832. This is primarily due to an increase in legal fees. General and administrative expenses decreased for the nine months ended September 30, 2025, as compared to the nine months ended September 30, 2024, by $684,850. This is primarily due to a decrease in professional expenses and salaries and wages.

Gain on Sale of Land – Three and Nine Months Ended September 30, 2025

Gain on sale of land was $275,399 and $140,582 for the nine months ended September 30, 2025 and 2024, respectively. For the three months ended September 30, 2025, this consisted of the sale of one 25-acre lot in Calcasieu parish. There were no land sales for the three months ended September 30, 2024. For the nine months ended September 30, 2025, this consisted of the sale of two 25-acre ranchette lots and one 53-acre lot in Calcasieu parish. For the nine months ended September 30, 2024, this consisted of the sale of one 25-acre ranchette lot in Calcasieu parish.

Liquidity and Capital Resources

Sources of Liquidity

Current assets totaled $14,744,240 and current liabilities equaled $281,098 at September 30, 2025.

As of September 30, 2025 and December 31, 2024, the Company had no outstanding debt.

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

The Company’s Board of Directors regularly evaluates a range of strategic alternatives that could increase shareholder value, and the Board and management conduct due diligence activities in connection with such alternatives. These include opportunities for growth though the acquisitions of land or other assets or business combinations, dispositions of assets and reinvestment of the proceeds, and other alternatives. The cost and terms of any financing to be raised in conjunction with any growth opportunity, including the Company’s ability to raise debt or equity capital on terms and at costs satisfactory to the Company, and the effect of such opportunities on the Company’s balance sheet, are critical considerations in any such evaluation.

Analysis of Cash Flows

Net cash provided by operating activities was $336,296 and $107,406 for the nine months ended September 30, 2025 and 2024, respectively. The increase in cash provided by operating activities was attributable to an increase in net income as well as a greater increase in current liabilities, which resulted in a favorable impact on operating cash flows.

Net cash provided by investing activities was $4,241,631 for the nine months ended September 30, 2025, while net cash used in investing activities was $4,126,604 for the nine months ended September 30, 2024. For the nine months ended September 30, 2025, this resulted from purchases of certificates of deposits of $6,750,837, offset by the maturity of certificates of deposit of $10,493,240 and proceeds from the sale of fixed assets of $499,228. For the nine months ended September 30, 2024, this resulted from purchases of certificates of deposits of $7,340,723, offset by the maturity of certificates of deposit of $3,073,537 and proceeds from the sale of fixed assets of $140,582.

Net cash used in financing activities was $147,614 and $208,854 for the nine months ended September 30, 2025 and 2024, respectively. For the nine months ended September 30, 2025 and 2024, this resulted from repurchases of common stock.

Significant Accounting Polices and Estimates

There were no changes in our significant accounting policies and estimates during the nine months ended September 30, 2025 from those set forth in “Significant Accounting Policies and Estimates” in our Annual Report on Form 10-K for the year ended December 31, 2024.

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, 2025, we did not have any off-balance sheet arrangements, financings, or other relationships with unconsolidated entities or other persons, also known as “special purpose entities” (SPEs).

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 officer and principal 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 officer and principal financial officer, 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, 2025, the Company’s disclosure controls and procedures were effective.

Changes in Internal Control Over Financial Reporting

There were no changes in the Company’s internal control over financial reporting during the three months ended September 30, 2025 that materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

PART II - OTHER INFORMATION

ITEMS 1 – 4. NOT APPLICABLE

ITEM 5. OTHER INFORMATION

During the third fiscal quarter of the Registrant’s 2025 fiscal year, no director or officer adopted or terminated a contract, instruction or written plan or arrangement for the purchase or sale of securities of the Registrant.

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).

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 10, 2023) (incorporated by reference to Exhibit 3.1 to Form 8-K (File No. 001-31905) filed on August 14, 2023).

10.1	Agreement of Purchase and Sale dated August 14, 2025 by and among the Registrant, Southern Pine Plantations of Georgia, Inc. and Adams, Hemingway, Wilson and Rutledge, LLC, as escrow agent (incorporated by reference to Exhibit 10.1 to Form 8-K (File No. 001-31905) filed on August 15, 2025).

31.1*	Certification of W. Gray Stream, President, pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

31.2*	Certification of Scott A. Stepp, Chief Financial Officer, pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

32.1**	Certification of W. Gray Stream, President, pursuant to 18 U.S.C. Section 1350 and Section 906 of the Sarbanes-Oxley Act of 2002.

32.2**	Certification of Scott Stepp, Chief Financial Officer, pursuant to 18 U.S.C. Section 1320 and Section 906 of the Sarbanes-Oxley Act of 2002.

101.INS	Inline XBRL Instance

101.SCH	Inline XBRL Taxonomy Extension Schema

101.CAL	Inline XBRL Taxonomy Extension Calculation

101.DEF	Inline XBRL Taxonomy Extension Definition

101.LAB	Inline XBRL Taxonomy Extension Labels

101.PRE	Inline XBRL Taxonomy Extension Presentation

104	Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101).

*	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 10, 2025

CKX LANDS, INC.

By:

*/s/ W. Gray Stream*
W. Gray Stream
President
(Principal executive officer)

CKX LANDS, INC. 10-Q