UNITED STATES
SECURITIES AND EXCHANGE
COMMISSION
WASHINGTON, D.C. 20549
SCHEDULE 14A INFORMATION
Proxy Statement Pursuant to Section
14(a) of the Securities Exchange of 1934 (Amendment No. __)
Filed by the
Registrant [X]
Filed by
a Party other than
the Registrant [ ] Check the
appropriate box:
[ ] Preliminary
Proxy Statement.
[ ] Confidential,
for Use of the Commission Only (as permitted by Rule 14a-6(e)(2)).
[X] Definitive Proxy Statement.
[ ] Definitive
Additional Materials.
[ ] Soliciting
Material Pursuant to Section 240.14a-12.
NEW CONCEPT ENERGY,
INC.
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(Name of Registrant as
Specified In Its Charter)
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(Name of Person(s) Filing
Proxy Statement if other than the Registrant)
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Payment of Filing Fee (Check the appropriate box):
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Aggregate number of securities to which transaction applies:
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Per unit price or other underlying value of transaction computed pursuant to Exchange Act Rule
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Proposed maximum aggregate value of transaction:
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Fee paid previously with preliminary materials.
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Check box if any part of the fee is offset as provided by Exchange Act Rule 0-11(a)(2) and identify
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NEW CONCEPT
ENERGY, INC.
NOTICE OF
ANNUAL MEETING OF STOCKHOLDERS
TO BE HELD
ON DECEMBER 16, 2020
New
Concept Energy, Inc. will hold its Annual Meeting of Stockholders on Wednesday, December 16, 2020, at 10:30 a.m., local Dallas,
Texas time, at 1603 LBJ Freeway, Suite 800, Dallas, Texas 75234. The purpose of the meeting is to consider and act upon:
● Election
of a Board of five directors to serve until the next Annual Meeting of Stockholders and until their successors are duly elected
and qualified.
● Ratification
of the selection of Swalm & Associates, P.C. as the independent registered public accounting firm.
● Such
other matters as may properly be presented at the Annual Meeting.
Only
Stockholders of record at the close of business on Friday, November 13, 2020, will be entitled to vote at the meeting.
Your
vote is important. Whether or not you plan to attend the meeting, please complete, sign, date and return the enclosed proxy card
in the accompanying envelope provided. Your completed proxy will not prevent you from attending the meeting and voting in person
should you choose.
Dated:
November 16, 2020
By
order of the Board of Directors,
Gene
S. Bertcher, President
__________________________
This Proxy
Statement is available at www.newconceptenergy.com.
Among other
things, the Proxy Statement contains information regarding:
$
The date, time and location of the meeting
$
A list of the matters being submitted to Stockholders
$
Information concerning voting in person
NEW CONCEPT
ENERGY, INC.
PROXY STATEMENT
FOR THE ANNUAL
MEETING OF STOCKHOLDERS
TO BE HELD
DECEMBER 16, 2020
The
Board of Directors of New Concept Energy, Inc. (the “Company” or “we” or “us”)
is soliciting proxies to be used at the Annual Meeting of Stockholders following the fiscal year ended December 31, 2019 (the
“Annual Meeting”). Distribution of this Proxy Statement and a Proxy Form is scheduled to begin on November
17, 2020. The mailing address of the Company's principal executive offices
is 1603 LBJ Freeway, Suite 300, Dallas, Texas 75234.
About the
Meeting
Who Can Vote
Record
holders of Common Stock and Series B Preferred Stock of the Company at the close of business on Friday, November 13, 2020 (the
“Record Date”), may vote at the Annual Meeting. On that date, 5,131,935 shares of Common Stock and 559 shares
of Series B Preferred Stock were outstanding. Each share is entitled to cast one vote.
How You Can
Vote
If
you return your signed proxy before the Annual Meeting, we will vote your shares as you direct. You can specify whether your shares
should be voted for all, some or none of the nominees for director. You can also specify whether you approve, disapprove or abstain
from the other proposal to ratify the selection of auditors.
If
a proxy is executed and returned but no instructions are given, the shares will be voted according to the recommendations of the
Board of Directors. The Board of Directors recommends a vote FOR both Proposals 1 and 2.
Revocation
of Proxies
You
may revoke your proxy at any time before it is exercised by (a) delivering a written notice of revocation to the Corporate Secretary,
(b) delivering another proxy that is dated later than the original proxy, or (c) casting your vote in person at the Annual Meeting.
Your last vote will be the vote that is counted.
Vote Required
The
holders of a majority of the shares entitled to vote who are either present in person or represented by a proxy at the Annual
Meeting will constitute a quorum for the transaction of business at the Annual Meeting. As of November 13, 2020, there were 5,131,935
shares of Common Stock and 559 shares of Series B Preferred Stock issued and outstanding. The presence, in person or by proxy,
of stockholders entitled to cast at least 2,566,247 votes constitutes a quorum for adopting the proposals at the Annual Meeting.
If you have properly signed and returned your proxy card by mail, you will be considered part of the quorum, and the persons named
on the proxy card will vote your shares as you have instructed. If the broker holding your shares in “street” name
indicates to us on a proxy card that the broker lacks
discretionary
authority to vote your shares, we will not consider your shares as present or entitled to vote for any purpose.
A
plurality of the votes cast is required for the election of directors. This means that the director nominee with the most votes
for a particular slot is elected to that slot. A proxy that has properly withheld authority with respect to the election of one
or more directors will not be voted with respect to the director or directors indicated, although it will be counted for purposes
of determining whether there is a quorum.
For
the other two proposals, the affirmative vote of the holders of a majority of the shares represented in person or by proxy entitled
to vote on the proposal will be required for approval. An abstention with respect to such proposal will not be voted, although
it will be counted for purposes of determining whether there is a quorum. Accordingly, an abstention will have the effect of a
negative vote.
If
you received multiple proxy cards, this indicates that your shares are held in more than one account, such as two brokerage accounts,
and are registered in different names. You should vote each of the proxy cards to ensure that all your shares are voted.
Other Matters
to be Acted Upon at the Annual Meeting
We
do not know of any other matters to be validly presented or acted upon at the Annual Meeting. Under our Bylaws, no business besides
that stated in the Annual Meeting Notice may be transacted at any meeting of stockholders. If any other matter is presented at
the Annual Meeting on which a vote may be properly taken, the shares represented by proxies will be voted in accordance with the
judgment of the person or persons voting those shares.
Expenses
of Solicitation
The
Company is making this solicitation and will pay the entire cost of preparing, assembling, printing, mailing and distributing
these proxy materials and soliciting votes. Some of our directors, officers and employees may solicit proxies personally, without
any additional compensation, by telephone or mail. Proxy materials will also be furnished without cost to brokers and other nominees
to forward to the beneficial owners of shares held in their names.
Available
Information
Our
internet website address is www.newconceptenergy.com. We make available free of
charge through our website our most recent Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form
8-K, and amendments to those reports as soon as reasonably practicable after we electronically file or furnish such materials
to the Securities and Exchange Commission (the “SEC”). In addition, we have posted the Charters of our Audit
Committee, Compensation Committee, and Governance and Nominating Committee, as well as our Code of Business Conduct and Ethics,
Code of Ethics for Senior Financial Officers, Corporate Governance Guidelines and Corporate Governance Guidelines on Director
Independence, all under separate headings. These charters and principles are not incorporated in this instrument by reference.
We will also provide a copy of these documents free of charge to stockholders upon written request. The Company issues Annual
Reports containing audited financial statements to its common stockholders.
Multiple
Stockholders Sharing the Same Address
The
SEC rules allow for the delivery of a single copy of an annual report and proxy statement to any household at which two or more
stockholders reside, if it is believed the stockholders are members of the same family. Duplicate account mailings will be eliminated
by allowing stockholders to consent to
such elimination,
or through implied consent if a stockholder does not request continuation of duplicate mailings. Depending upon the practices
of your broker, bank or other nominee, you may need to contact them directly to continue duplicate mailings to your household.
If you wish to revoke your consent to house holding, you must contact your broker, bank or other nominee.
If
you hold shares of common stock in your own name as a holder of record, house holding will not apply to your shares.
If
you wish to request extra copies free of charge of any annual report, proxy statement or information statement, please send your
request to New Concept Energy, Inc., Attention: Investor Relations, 1603 LBJ Freeway, Suite 800, Dallas, Texas 75234 or call (800)
400-6407.
Questions
You
may call our Investor Relations Department at 800-400-6407 if you have any questions.
PLEASE VOTE
- YOUR VOTE IS IMPORTANT
Corporate
Governance and Board Matters
The
affairs of the Company are managed by the Board of Directors. The Directors are elected at the annual meeting of stockholders
each year or appointed by the incumbent Board of Directors and serve until the next annual meeting of stockholders or until a
successor has been elected or approved.
Current members
of the Board
The
members of the Board of Directors on the date of this proxy statement, and the committees of the Board on which they serve, are
identified below:
Director
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Audit
Committee
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Compensation
Committee
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Governance
and Nominating Committee
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Gene S. Bertcher
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Richard W. Humphrey
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Dan Locklear
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Chair
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✓
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✓
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Cecelia Maynard
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✓
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✓
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Chair
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Raymond D. Roberts,
Sr.
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✓
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Chair
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✓
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Role of the
Board’s Committees
The
Board of Directors has standing Audit, Governance and Nominating, and Compensation Committees.
Audit
Committee. The functions of the Audit Committee are described below under the heading “Report of the Audit Committee.”
The Audit Committee is an “audit committee” for purposes of Section 3(a)(58) of the Securities Exchange Act of 1934,
as amended. The charter of the Audit Committee was adopted on December 12, 2003, and is available on the Company's
Investor Relations website (www.newconceptenergy.com). The Audit Committee was
initially formed on December 12, 2003. All of the members of the Audit Committee are independent within the meaning of the SEC
regulations, the listing standards of the NYSE American (formerly, the American Stock Exchange) and the Company's
Corporate Governance Guidelines. Mr. Locklear, a member and Chair of the Committee, is qualified as an “audit committee
financial expert” within the meaning of SEC regulations and the Board has determined that he has accounting and related
financial management expertise within the meaning of the listing standards of the NYSE American. All of the members of the Audit
Committee meet the independence and experience requirements of the listing standards of the NYSE American. The Audit Committee
met four times in 2019.
Governance
and Nominating Committee. The Governance and Nominating Committee is responsible for developing and implementing policies
and practices relating to corporate governance, including reviewing and monitoring implementation of the Company's
Corporate Governance Guidelines. In addition, the Committee develops and reviews background information on candidates for
the Board and makes recommendations to the Board regarding such candidates. The Committee also prepares and supervises the Board’s
annual review of director independence and the Board’s performance self-evaluation. The charter of the Governance and Nominating
Committee was adopted on October 20, 2004,
and is available
on the Company's Investor Relations website (www.newconceptenergy.com).
The Governance and Nominating Committee was initially formed on October 20, 2004. All of the members of the Governance
and Nominating Committee are independent within the meaning of the listing standards of the NYSE American and the Company's Corporate
Governance Guidelines. The Governance and Nominating Committee met two times in 2019.
Compensation
Committee. The Compensation Committee is responsible for overseeing the policies of the Company relating to compensation
to be paid by the Company to the Company's principal executive officer
and any other officers designated by the Board and make recommendations to the Board with respect to such policies, produce necessary
reports on executive compensation for inclusion in the Company’s proxy statement in accordance with applicable rules and
regulations and to monitor the development and implementation of succession plans for the principal executive officer and other
key executives and make recommendations to the Board with respect to such plans. The charter of the Compensation Committee was
adopted on October 20, 2004, and is available on the Company’s Investor Relations website (www.newconceptenergy.com).
The Compensation Committee was initially formed on October 20, 2004. All of the members of the Compensation Committee are independent
within the meaning of the listing standards of the NYSE American and the Company's
Corporate Governance Guidelines. The Compensation Committee is to be comprised of at least three directors who are independent
of management and the Company. The Compensation Committee met one time in 2019.
Presiding
Director
On
November 8, 2011, the Board created a new position of Presiding Director, whose primary responsibility is to preside over periodic
executive sessions of the Board in which management directors and other members of management do not participate. The Presiding
Director also advises the Chairman of the Board and, as appropriate, Committee chairs with respect to agendas and information
needs relating to Board and Committee meetings, provides advice with respect to the selection of Committee chairs and perform
other duties that the Board may from time to time delegate to assist the Board in the fulfillment of its responsibilities. The
nonmanagement members of the Board designated Dan Locklear to serve in this position until the Company's
annual meeting of stockholders to be held following the fiscal year ended December 31, 2019 (i.e., this meeting).
Selection
of Nominees for the Board
The
Governance and Nominating Committee will consider candidates for Board membership suggested by its members and other Board members,
as well as management and stockholders. The Committee may also retain a third-party executive search firm to identify candidates
upon request of the Committee from time to time. A stockholder who wishes to recommend a prospective nominee for the Board should
notify the Company's Corporate Secretary or any member of the Governance and Nominating Committee in writing with whatever supporting
material the stockholder considers appropriate. The Governance and Nominating Committee will also consider whether to nominate
any person nominated by a stockholder pursuant to the provisions of the Company's bylaws relating to stockholder nominations.
Once
the Governance and Nominating Committee has identified a prospective nominee, the Committee will make an initial determination
as to whether to conduct a full evaluation of the candidate. This initial determination will be based on whatever information
is provided to the Committee with the recommendation of the prospective candidate, as well as the Committee's own knowledge of
the prospective candidate, which may be supplemented by inquiries to the person making the recommendation or others. The preliminary
determination will be based primarily on the need for additional Board members to fill vacancies or expand the size of the Board
and the likelihood that the prospective nominee can satisfy the evaluation factors described below. If the Committee determines,
in consultation with the Chairman of the Board and other Board members as appropriate, that additional consideration is warranted,
it may request
the third-party
search firm to gather additional information about the prospective nominee's background and experience and to report its findings
to the Committee. The Committee will then evaluate the prospective nominee against the standards and qualifications set out in
the Company's Corporate Governance Guidelines, including:
● the
ability of the prospective nominee to represent the interests of the stockholders of the Company;
● the
prospective nominee's standards of integrity, commitment and independence of thought and judgment;
● the
prospective nominee's ability to dedicate sufficient time, energy and, attention to the diligent performance of his or her duties,
including the prospective nominee's service on other public company boards, as specifically set out in the Company's Corporate
Governance Guidelines;
● the
extent to which the prospective nominee contributes to the range of talent, skill and expertise appropriate for the Board;
● the
extent to which the prospective nominee helps the Board reflect the diversity of the Company's stockholders, employees, customers,
guests and communities; and
● the
willingness of the prospective nominee to meet any minimum equity interest holding guideline.
The Committee
also considers such other relevant factors as it deems appropriate, including the current composition of the Board, the balance
of management and independent directors, the need for Audit Committee expertise and the evaluations of other prospective nominees.
In connection with this evaluation, the Committee determines whether to interview the prospective nominee, and if warranted, one
or more members of the Committee, and others as appropriate, interview prospective nominees in person or by telephone. After completing
this evaluation and interview, the Committee makes a recommendation to the full Board as to the persons who should be nominated
by the Board, and the Board determines the nominees after considering the recommendation and report of the Committee.
The
Bylaws of the Company provide that any stockholder entitled to vote in the election of directors generally may nominate one or
more persons for election as directors at a meeting only if one hundred twenty (120) days prior written notice of such stockholders'
intention to make such nomination has been delivered personally to, or has been mailed to and received by the Board of
Directors at the principal office of the Company with a copy to the President and Secretary of the Company. If a stockholder has
a suggestion for candidates for election, the stockholder should follow this procedure. Each notice from a stockholder must set
forth (i) the name and address of the stockholder who intends to make the nomination and the name of the person to be nominated,
(ii) the class and number of shares of stock held of record, owned beneficially and represented by proxy by such stockholder
as of the record date for the meeting and as of the date of such notice, (iii) a representation that the stockholder intends
to appear in person or by proxy at the meeting to nominate the person specified in the notice, (iv) a description of all arrangements
or understandings between such stockholder and each nominee and any other person (naming those persons) pursuant to which the
nomination is to be made by such stockholder, (v) such other information regarding each nominee proposed by such stockholder as
would be required to be included in a proxy statement filed pursuant to the proxy rules, and (vi) the consent of each nominee
to serve as a director of the Company if so elected. The chairman of the Annual Meeting may refuse to acknowledge the nomination
of any person not made in compliance with this procedure.
Determinations
of Director Independence
In
October 2004, the Board enhanced its Corporate Governance Guidelines. The Guidelines adopted by the Board meet or
exceed the new listing standards adopted during the year by the American Stock Exchange. The full text of the Guidelines can
be found in the Investor Relations section of the Company's website (www.newconceptenergy.com).
A copy may also be obtained upon request from the Company's Corporate Secretary.
Pursuant
to the Guidelines, the Board undertook its annual review of director independence in December 2019. During this review,
the Board considered transactions and relationships between each director or any member of his or her immediate family and the
Company and its subsidiaries and affiliates, including those reported under “Certain Relationships and Related Transactions”
below. The Board also examined transactions and relationships between directors or their affiliates and members of the Company's
senior management or their affiliates. As provided in the Guidelines, the purpose of this review was to determine whether
any such relationships or transactions were inconsistent with a determination that the director is independent.
As
a result of this review, the Board affirmatively determined that the then directors, Messrs. Huffstickler, Locklear, Lund and
Roberts, are each independent of the Company and its management under the standards set forth in the Corporate Governance Guidelines.
Since that time, Mr. Lund, age 87, resigned on July 26, 2020. Mr. Richard W. Humphrey was selected as a director, effective October
9, 2020.
Directors’
Service for Other Publicly Held Entities
Raymond
D. Roberts, Sr. serves as a member of the Audit Committee of this Company as well as three other corporations which are part of
a consolidated group for financial statement reporting purposes, all of which are involved in another industry, the common stock
of each of which is listed and available for trading on the NYSE and/or NYSE American, thus making four entities for which Mr.
Roberts serves in a similar capacity. The Board has determined, after discussion, that the fact that three of the entities are
part of a consolidated group requires Mr. Roberts to be familiar with the financial reporting requirements and standards of each
of those entities due to the fact of consolidation and does not create an additional burden upon Mr. Roberts but also confers
a benefit on each of those three entities, as it may well save on Mr. Roberts’ time and responsibility. This entity (and
the other three consolidated entities) has no specific policy or prohibition upon Mr. Roberts
or any other person’s service to any other publicly held entities, but the members of this Board periodically review other
relationships among Committee and Board members with other independent entities to ensure that no conflict exists and, in fact,
have confirmed that Mr. Roberts’ service to other entities in other industries benefits the expertise of Mr. Roberts and
the Company.
Board Meetings During Fiscal 2019
The
Board met six times during fiscal 2019. Each director attended 75% or more of the meetings of the Board and Committees on which
he served. Under the Company's Corporate Governance Guidelines,
each Director is expected to dedicate sufficient time, energy an attention to ensure the diligent performance of his or her duties,
including by attending meetings of the stockholders of the Company, the Board and Committees of which he is a member. In addition,
the independent directors met in executive session four times during fiscal 2019.
Directors’
Compensation
Each
nonemployee director currently receives an annual retainer of $2,500 plus a meeting fee of $2,000 plus reimbursement for expenses.
The Company also reimburses directors for travel expenses
incurred in
connection with attending Board, committee and stockholder meetings and for other Company/business related expenses. Directors
who are also employees of the Company receive no additional compensation for service as a director.
During
2019, $42,000 was paid to the nonemployee directors in total directors’ fees for all services, including the annual fee for service
during the period from January 1, 2019, through December 31, 2019. Those fees received by directors were Dan Locklear ($10,500),
Victor Lund, a longtime director, who resigned July 26, 2020 ($10,500), Cecelia Maynard ($10,500), and Raymond D. Roberts, Sr.
($10,500).
Stockholders’
Communication with the Board
Stockholders
and other parties interested in communicating directly with the presiding director or with the nonmanagement directors as a group
may do so by writing to Dan Locklear, Director, P. O. Box 830163, Richardson, Texas 75083-0160. Effective October 20, 2004, the
Governance and Nominating Committee of the Board also approved a process for handling letters received by the Company and addressed
to members of the Board but received at the Company. Under that process, the Corporate Secretary of the Company reviews all such
correspondence and regularly forwards to the Board a summary of all such correspondence and copies of all correspondence that,
in the opinion of the Corporate Secretary, deals with the functions of the Board or committees thereof or that he otherwise determines
requires their attention. Directors may at any time review a log of all correspondence received by the Company that is addressed
to members of the Board and received by the Company and request copies of any such correspondence. Concerns relating to accounting,
internal controls or auditing matters are immediately brought to the attention of the Chairman of the Audit Committee and handled
in accordance with procedures established by the Audit Committee with respect to such matters.
Code of Ethics
The
Company has adopted a Code of Business Conduct and Ethics, which applies to all directors, officers and employees (including those
of the contractual advisor). In addition, on October 20, 2004, the Company adopted a code of ethics entitled “Code of Ethics
for Senior Financial Officers” that applies to the principal executive officer, president, principal financial officer,
chief financial officer, the principal accounting officer and controller. The text of both documents is available on the Company's
Investor Relations website (www.newconceptenergy.com). The Company intends to post
amendments to or waivers from its Code of Ethics for Senior Financial Officers (to the extent applicable to the Company's chief
executive officer, principal financial officer or principal accounting officer) at this location on its website.
Compliance
with Section 16(a) of Reporting Requirements
Section
16(a) under the Securities Exchange Act of 1934 requires the Company’s
directors, executive officers and any persons holding 10% or more of the Company's
shares of Common Stock are required to report their ownership of the Company's
shares of Common Stock and any changes in that ownership to the SEC on specified report forms. Specific due dates for these reports
have been established, and the Company is required to report any failure to file by these dates during each fiscal year. All of
these filing requirements were satisfied by the Company's directors and
executive officers and holders of more than 10% of the Company’s Common Stock during the fiscal year ended December 31, 2019. In
making these statements, the Company has relied upon the written representations of its directors and executive officers and the
holders of 10% or more of the Company's Common Stock and copies of the
reports that each has filed with the SEC.
Security Ownership
of Certain Beneficial Owners and Management
Security
Ownership of Certain Beneficial Owners
The
following table sets forth the ownership of the Company's Common Stock,
both beneficially and of record, both individually and in the aggregate, for those persons or entities known by the Company to
be the beneficial owners of more than 5% of its outstanding Common Stock as of the close of business on November 13, 2020.
Name
and Address of
Beneficial
Owner
|
Amount and Nature
of
Beneficial
Ownership
|
Approximate
Percent of
Class
|
Realty
Advisors, Inc.
1603
LBJ Freeway, Suite 800
Dallas,
Texas 75234
|
3,060,000
shares
|
58.63%
|
Security
Ownership of Management
The
following table sets forth the ownership of the Company's Common Stock,
both beneficially and of record, both individually and in the aggregate, for the directors and executive officers of the Company
as of the close of business on November 13, 2020.
Name and Address
of Beneficial Owner
|
Amount
and Nature of Beneficial Ownership*
|
Approximate
Percent of Class**
|
Gene S. Bertcher
|
-
|
0%
|
Richard W. Humphrey
|
-
|
0%
|
Dan Locklear
|
-
|
0%
|
Cecelia Maynard
|
-
|
0%
|
Raymond D. Roberts,
Sr.
|
-
|
0%
|
All directors and
executive officers as a group (5 people)
|
-
|
0%
|
_____________________________
*
“Beneficial Ownership” means the sole or shared power to vote, or to direct the voting of, a security or investment
power with respect to a security, or any combination thereof.
**
Percentages are based upon 5,131,935 shares of Common Stock outstanding at November 13, 2020.
|
PROPOSAL 1
ELECTION OF
DIRECTORS
Five
directors are to be elected at the Annual Meeting. Each director elected will hold office until the Annual Meeting following the
fiscal year ending December 31, 2020. All of the nominees for director are now serving as directors. Each of the nominees has
consented to being named in this proxy statement
as a nominee
and has agreed to serve as a director if elected. The persons named on the proxy card will vote for all of the nominees for director
listed unless you withhold authority to vote for one or more of the nominees. The nominees receiving a plurality of votes cast
at the Annual Meeting will be elected as directors. Abstentions and broker non-votes will not be treated as a vote for or against
any particular nominee and will not affect the outcome of the election of directors. Cumulative voting for the election of directors
is not permitted. If any director is unable to stand for reelection, the Board will designate a substitute. If a substitute nominee
is named, the persons named on the proxy card will vote for the election of the substitute director.
James
E. Huffstickler, 75, a director of the Company since December 2003, resigned, effective October 20, 2017. He is retired and previously
served as the Chief Financial Officer of Sunchase American, Ltd., a multistate property management firm, for more than 22 years.
He has been a certified public accountant since 1976. Following Mr. Huffstickler's
resignation, the committees of the Board of Directors were restructured. Cecelia Maynard was elected as a director by the Board
of Directors on January 18, 2019. Ms. Maynard resigned as a director on July 10, 2020. Victor Lund, age 89, a director since March
1996, resigned on July 26, 2020, and on August 20, 2020, Cecelia Maynard was reelected as a director to fill the vacancy created
by the resignation of Victor Lund. On October 8, 2020, effective October 9, 2020, Richard W. Humphrey was elected a director by
the Board.
The
nominees for election as directors at the Annual Meeting are listed below, together with their ages, terms of service, all positions
and offices with the Company, other principal occupations, business experience and directorships with other companies during the
last five years or more. All of the nominees are currently serving as directors of the Company, and four were elected at the Annual
Meeting of Stockholders held on December 5, 2019. No family relationship exists among any of the directors or executive officers
of the Company. The designation “affiliated,” when used below with respect to a director, means that the director
is an officer, director or employee of the Company.
Gene
S. Bertcher, age 72, (Affiliated) Director since November 1989 to September 1996 and since June 1999
Mr.
Bertcher was elected President and Chief Financial Officer effective November 1, 2004. He was elected Chairman and Chief Executive
Officer in December 2006. He relinquished the position of President in September 2008 and was reelected President in April 2009.
From January 3, 2003 until that date he was also Chief Executive Officer. Mr. Bertcher was Executive Vice President, Chief Financial
Officer and Treasurer of the Company (November 1989 to November 2004). He has been a certified public accountant since 1973. Mr.
Bertcher is also Executive Vice president (since February 2008) and Chief Financial Officer (since November 2, 2009) of Income
Opportunity Realty Investors, Inc., a Nevada corporation (“IOR”), which has its common stock listed and traded
on the NYSE American. Also, he was Executive Vice President (February 2008 to July 2019) and Chief Financial Officer (May 2008
to July 2019) of American Realty Investors, Inc., a Nevada corporation (“ARL”), which has its common stock
listed and traded on the New York Stock Exchange (“NYSE”), Transcontinental Realty Investors, Inc., a Nevada
corporation (“TCI”), which also has its common stock listed and traded on the NYSE. All of ARL, TCI and IOR
are Dallas, Texas based real estate entities; prior to May 2008 and from February 2008 to April 2008, he was also Interim Chief
Financial Officer of ARL, TCI and IOR. Until November 1989, Mr. Bertcher was a partner in Grant Thornton, LLP having served as
Chairman of its National Real Estate and Construction Committee.
Richard
W. Humphrey, age 73, (Affiliated) Director since October 9, 2020
Mr.
Humphrey has been, for more than the past five years, Vice President of Regis Realty Prime, LLC, involved in sales and acquisitions
of real estate properties. Mr. Humphrey received from Southern Methodist University Cox School of Business both a Bachelors of
Business Administration and Masters of
Business Administration
degree with emphasis in real estate. From 1976 to 1979, he was also a part-time faculty member at Southern Methodist University
Cox School of Business in Dallas, teaching real estate classes in undergraduate and graduate school. Regis Realty Prime, LLC and
its predecessors are affiliated with Realty Advisors, Inc. (“RAI”).
Dan
Locklear, age 65, (Independent) Director since December 2003
Mr.
Locklear has been Chief Financial Officer of Sunridge Management Group, a real estate management company, for more than five years.
Mr. Locklear was formerly employed by Johnstown Management Company, Inc. and Trammel Crow Company. Mr. Locklear has been a certified
public accountant since 1981 and a licensed real estate broker in the State of Texas since 1978.
Cecelia
Maynard, age 69, (Independent) Director from January 2019 to July 10, 2020 and since August 20, 2020
Ms.
Maynard was employed by Pillar Income Asset Management, Inc. (“Pillar”) from January 2011 through December
31, 2018. Pillar is a Nevada corporation which provides management services to other entities. Ms. Maynard has also (since May
31, 2018) been a director, Vice President and Secretary of First Equity Properties, Inc., a Nevada corporation, the Common Stock
of which is registered under Section 12(g) of the Securities Exchange Act of 1934.
Raymond
D. Roberts, Sr., age 89, (Independent) Director since June 2015
Mr.
Roberts was originally elected a director on June 17, 2015, by the Board to fill a vacancy; he was elected at the last Annual
Meeting. He is retired. For more than five years prior to December 31, 2014, he was Director of Aviation of Steller Aviation,
Inc., a privately held Nevada corporation, engaged in the business of aircraft and logistical management. Mr. Roberts has been
(since June 2, 2016) a member of the Board of Directors of each of ARL, TCI and IOR.
The Board
of Directors unanimously recommends a vote FOR
the election
of all of the Nominees named above.
PROPOSAL 2
RATIFICATION
OF APPOINTMENT OF
INDEPENDENT
REGISTERED PUBLIC ACCOUNTING FIRM
The
Audit Committee has appointed Swalm & Associates, P.C. as the independent registered public accounting firm for New Concept
Energy, Inc. for the 2020 fiscal year and to conduct quarterly reviews through September 30, 2021. The Company's
Bylaws do not require that stockholders ratify the appointment of Swalm & Associates, P.C. as the Company's
independent registered public accounting firm. Swalm & Associates, P.C. has served as the Company's
independent registered public accounting firm for each of the fiscal years ended December 31, 2008 through 2019. The Audit Committee
will consider the outcome of this vote in its decision to appoint an independent registered public accounting firm next year;
however, it is not bound by the stockholders' decision. Even if the selection
is ratified, the Audit Committee, in its sole discretion, may change the appointment at any time during the year if it determines
that such a change would be in the best interest of the Company and its stockholders.
A
representative of Swalm & Associates, P.C. will attend the Annual Meeting. The representative will have an opportunity to
make a statement if he or she desires to do so and will be available to respond to appropriate questions from the stockholders.
The Board
of Directors unanimously recommends a vote FOR the ratification of the
appointment
of Swalm & Associates, P.C. as the Company's
independent
registered public accounting firm.
Fiscal Years
2018 and 2019 Audit Firm Fee Summary
The
following table sets forth the aggregate fees for professional services rendered to the Company for the years 2018 and 2019 by
the Company's principal accounting firm, Swalm & Associates, P.C.:
Type of Fees
|
|
2018
|
|
2019
|
Audit Fees
|
|
$
|
67,000
|
|
|
$
|
67,000
|
|
Audit-Related Fees
|
|
|
—
|
|
|
|
—
|
|
Tax Fees
|
|
$
|
12,000
|
|
|
$
|
12,000
|
|
All Other Fees
|
|
|
—
|
|
|
|
—
|
|
Total Fees:
|
|
$
|
79,000
|
|
|
$
|
79,000
|
|
____________________________
All
services rendered by the principal auditors are permissible under applicable laws and regulations and were pre-approved by either
the Board of Directors or the Audit Committee, as required by law. The fees paid the principal auditors for services as described
in the above table fall under the categories listed below:
Audit
Fees. These are fees for professional services performed by the principal auditor for the audit of the Company's
annual financial statements and review of financial statements included in the Company's
10-Q filings and services that are normally provided in connection with statutory and regulatory filing or engagements.
Audit-Related
Fees. These are fees for assurance and related services performed by the principal auditor that are reasonably related to
the performance of the audit or review of the Company's financial statements.
These services include attestations by the principal auditor that are not required by statute or regulation and consulting on
financial accounting/reporting standards.
Tax
Fees. These are fees for professional services performed by the principal auditor with respect to tax compliance, tax planning,
tax consultation, returns preparation and review of returns. The review of tax returns includes the Company and its consolidated
subsidiaries.
All
Other Fees. These are fees for other permissible work performed by the principal auditor that do not meet the above category
descriptions.
These
services are actively monitored (as to both spending level and work content) by the Audit Committee to maintain the appropriate
objectivity and independence in the principal auditor's core work, which
is the audit of the Company's consolidated financial statements.
Swalm
& Associates PC did not render professional services to the Company in 2019 involving any financial information systems design
and implementation.
Report of
the Audit Committee
of the Board
of Directors
The
Audit Committee of the Board of Directors is composed of three directors, each of whom satisfies the requirements of independence,
experience and financial literacy under the requirements of the NYSE American and the SEC. The Audit Committee has directed the
preparation of this report and has approved its content and submission to the stockholders.
The
Audit Committee is responsible for, among other things:
• retaining
and overseeing the independent registered public accounting firm that serves as our independent auditor and evaluating their performance
and independence;
• reviewing
the annual audit plan with management and the independent registered public accounting firm;
• preapproving
any permitted non-audit services provided by our independent registered public accounting firm;
• approving
the fees to be paid to our independent registered public accounting firm;
• reviewing
the adequacy and effectiveness of our internal controls with management, internal auditors and the independent registered public
accounting firm;
• reviewing
and discussing the annual audited financial statements and the interim unaudited financial statements with management and the
registered public accounting firm; and
• approving
our internal audit plan and reviewing reports of our internal auditors.
The
Audit Committee operates under a written charter adopted by the Board of Directors. The Committee's
responsibilities are set forth in this charter which is available on our website at www.newconceptenergy.com.
The
Audit Committee assists the Board in fulfilling its responsibilities for general oversight of the integrity of the Company’s financial
statements, the adequacy of the Company's system of internal controls,
the Company's risk management, the Company's
compliance with legal and regulatory requirements, the independent auditors'
qualifications and independence, and the performance of the Company's
independent auditors. The Committee has sole authority over the selection of the Company's
independent auditors and manages the Company's relationship with its independent
auditors. The Committee has the authority to obtain advice and assistance from outside legal, accounting or other advisors as
the Committee deems necessary to carry out its duties and receive appropriate funding, as determined by the Committee, from the
Company for such advice and assistance.
The
Committee met four times during 2019. The Committee schedules its meetings with a view to ensuring that it devotes appropriate
attention to all of its tasks. The Committee's meetings include private
sessions with the Company's independent auditors without the presence
of the Company's management, as well as executive sessions consisting
of only Committee members. The Committee also meets senior management from time to time.
Management
has the primary responsibility for the Company's financial reporting process,
including its system of internal control over financial reporting and for the preparation of consolidated financial statements
in accordance with accounting principles generally accepted in the United States of America. The Company's
independent auditors are responsible for auditing those financial statements in accordance with professional standards and expressing
an opinion as to their material conformity with U.S. generally accepted accounting principles and for auditing management's
assessment of, and the effective operation of, internal control over financial reporting. The Committee's
responsibility is to monitor and review the Company's financial reporting
process and discuss management's report on the Company's
internal control over financial reporting. It is not the Committee's duty
or responsibility to conduct audits or accounting reviews or procedures. The Committee has relied, without independent verification,
on management's representation that the financial statements have been
prepared with integrity and objectivity and in conformity with accounting principles generally accepted in the United States of
America and on the opinion of the independent registered public accountants included in their report on the Committee's
financial statements.
As
part of its oversight of the Company's financial statements, the Committee
reviews and discusses with both management and the Company's independent
registered public accountants all annual and quarterly financial statements prior to their issuance. During 2019, management advised
the Committee that each set of financial statements reviewed had been prepared in accordance with accounting principles generally
accepted in the United States of America, and reviewed significant accounting and disclosure issues with the Committee. These
reviews include discussions with the independent accountants of the matters required to be discussed pursuant to Statement
on Auditing Standards No. 61 (Codification of Statements on Auditing Standards), including the quality (not merely the acceptability)
of the Company's accounting principles, the reasonableness of significant
judgments, the clarity of disclosures in the financial statements and disclosures related to critical accounting practices. The
Committee has also discussed with Swalm & Associates, P.C. matters relating to its independence, including a review of audit
and non-audit fees, and written disclosures from Swalm & Associates, P.C. to the Company pursuant to Independence Standards
Board Standard No. 1 (Independence Discussions with Audit Committees). The Committee also considered whether non-audit services,
provided by the independent accountants are compatible with the independent accountant's
independence. The Company also received regular updates on the amount of fees and scope of audit, audit related, and tax services
provided.
In
addition, the Committee reviewed key initiatives and programs aimed at strengthening the effectiveness of the Company's
internal and disclosure control structure. As part of this process, the Committee continued to monitor the scope and adequacy
of the Company's internal controls, reviewed staffing levels and steps
taken to implement recommended improvements in any internal procedures and controls.
Based
on the Committee's discussion with management and the independent accountants
and the Committee's review of the representation of management and the
report of the independent accountants to the Board of Directors, the Audit Committee recommended to the Board of Directors, and
the Board of Directors has approved, that the audited consolidated financial statements be included in the Company's
Annual Report on Form 10-K for the year ended December 31, 2019, filed with the SEC. The Audit Committee and the Board of Directors
have also selected Swalm & Associates, P.C. as the Company's independent
registered public accountants and auditors for the fiscal year ending December 31, 2020.
AUDIT COMMITTEE
Raymond
D. Roberts, Sr.
|
Dan Locklear
|
Cecelia Maynard
|
Pre-Approval
Policy for Audit and Non-Audit Services
Under
the Sarbanes-Oxley Act of 2002 (the “SO Act”), and the rules of the SEC, the Audit Committee of the Board of
Directors is responsible for the appointment, compensation and oversight of the work of the independent auditor. The purpose of
the provisions of the SO Act and the SEC rules for the Audit Committee role in retaining the independent auditor is twofold. First,
the authority and responsibility for the appointment, compensation and oversight of the auditors should be with directors who
are independent of management. Second, any non-audit work performed by the auditors should be reviewed and approved by these same
independent directors to ensure that any non-audit services performed by the auditor do not impair the independence of the independent
auditor. To implement the provisions of the SO Act, the SEC issued rules specifying the types of services that an independent
auditor may not provide to its audit client, and governing the Audit Committee's
administration of the engagement of the independent auditor. As part of this responsibility, the Audit Committee is required to
pre-approve the audit and non-audit services performed by the independent auditor in order to assure that they do not impair the
auditor's independence. Accordingly, the Audit Committee adopted on March
22, 2004 a written pre-approval policy of audit and non-audit services (the “Policy”), which sets forth the
procedures and conditions pursuant to which services to be performed by the independent auditor are to be pre-approved. Consistent
with the SEC rules establishing two different approaches to approving non-prohibited services, the policy of the Audit Committee
covers pre-approval of audit services, audit related services, international administration tax services, non-U.S. income tax
compliance services, pension and benefit plan consulting and compliance services, and U.S. tax compliance and planning. At the
beginning of each fiscal year, the Audit Committee will evaluate other known potential engagements of the independent auditor,
including the scope of work proposed to be performed and the proposed fees, and approve or reject each service, taking into account
whether services are permissible under applicable law and the possible impact of each non-audit service on the independent auditor's
independence from management. Typically, in addition to the generally pre-approved services, other services would include due
diligence for an acquisition that may or may not have been known at the beginning of the year. The Audit Committee has also delegated
to any member of the Audit Committee designated by the Board or the financial expert member of the Audit Committee responsibilities
to pre-approve services to be performed by the independent auditor not exceeding $25,000 in value or cost per engagement of audit
and non-audit services, and such authority may only be exercised when the Audit Committee is not in session.
EXECUTIVE
COMPENSATION
The
Company has few employees, and no payroll or benefit plans and pays compensation to only one executive officer. The following
tables set forth the compensation in all categories paid by the Company for services rendered during the fiscal years ended December
31, 2019, 2018, and 2017, by the Principal Executive Officer of the Company and to the other executive officers and Directors
of the Company, whose total annual salaries in 2019 exceeded $100,000, the number of options granted to any of such persons during
2019 and the value of the unexercised options held by any of such persons on December 31, 2019.
SUMMARY COMPENSATION
TABLE
Name and
Principal
Position
|
|
|
Year
|
|
|
|
Salary
|
|
|
|
Bonus
|
|
|
Stock Awards
|
|
Option Awards
|
|
Non-Equity Incentive Plan Compensation
|
|
Change in Pension Value and Non-qualified Deferred Compensation Earnings
|
|
All Other Compensation
|
|
|
Total
|
|
Gene S. Bertcher (1)
Chairman, President
& Chief Financial Officer
|
|
|
2019
2018
2017
|
|
|
|
$56,500
$56,500
$56,500
|
|
|
|
-
-
-
|
|
|
-
-
-
|
|
-
-
-
|
|
-
-
-
|
|
-
-
-
|
|
-
-
-
|
|
|
$56,500
$56,500
$56,500
|
|
(1) Commencing
in February 2008, on a then interim basis, three other publicly held entities (Income Opportunity Realty Investors, Inc., Transcontinental
Realty Investors, Inc., and American Realty Investors, Inc., each of which have the same contractual advisor, now Pillar Income
Asset Management, Inc. [“Pillar”]) arranged with the Company for accounting and administrative services of
the Company, specifically Gene S. Bertcher, who is a certified public accountant and had a long history in the industry in which
such entities were engaged. At the time, the Company, through Bertcher, was also providing accounting and administrative services
to other entities on a fee based arrangement to assist those entities when the Company had excess capacity and personnel to provide
accounting services. Commencing February 2008, Mr. Bertcher was elected as Officer and Chief Financial Officer of each of IOR,
TCI, and ARL. As a compensation arrangement evolved over time, the three entities agreed to reimburse the Company for one half
of the gross compensation and related expenses of Bertcher at the Company and, from and after December 31, 2010, arranged to provide
office space for Mr. Bertcher and certain other Company personnel rather than requiring operating out of two separate locations.
Beginning January 1, 2011, the Company's accounting department moved into
offices maintained by the contractual advisor of the three entities, and the Company was then allowed the use of certain administrative
services, such as space on the contractual advisor's computer server,
use of copiers, telephone services, and other related items. The Company has not been charged for the use of such office space,
computer services, telephone service, or other day-to-day cost of operating an office. Each of the three entities effectively
split the cost, generally, one third each. ARL (together with subsidiaries) owns in excess of 80% of the Common Stock of TCI,
and TCI, in turn, owns in excess of 80% of the Common Stock of IOR. The arrangement renews on an annual basis and is terminable
on sixty (60) days written notice. For purposes of the table set forth above, the net cost to the Company is 25% to 50% of the
salary amount for each year. The amount reflected in the table above is one quarter (2019, 2018 and 2017) of the total compensation
for Mr. Bertcher, attributable to the Company.
GRANTS OF
PLAN BASED AWARDS
None
OUTSTANDING
EQUITY AWARDS AT FISCAL YEAR END
None
OPTION EXERCISES
AND STOCK VESTED
None
PENSION BENEFITS
None
NON-QUALIFIED
DEFERRED COMPENSATION
None
DIRECTOR COMPENSATION
Name
|
|
Fees Earned or Paid in Cash
|
|
Stock Awards
|
|
Option Awards
|
|
Non-Equity Incentive Plan Compensation
|
|
Change in Pension Value and Non-qualified Deferred Compensation Earnings
|
|
All
Other Compensation
|
|
|
Total
|
|
Gene S. Bertcher
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
—
|
|
Dan Locklear
|
|
$
|
10,500
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
10,500
|
|
Victor L. Lund
|
|
$
|
10,500
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
10,500
|
|
Cecelia Maynard
|
|
$
|
10,500
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
10,500
|
|
Raymond D. Roberts, Sr.
|
|
$
|
10,500
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
10,500
|
|
The
Company pays each nonemployee director a fee of $2,500 per annum plus a meeting fee of $2,000 for each Board meeting attended.
Directors who are also employees of the Company serve without additional compensation.
MANAGEMENT
AND CERTAIN SECURITY HOLDERS
None
Compensation
Committee Report
The
Compensation Committee of the Board of Directors is comprised of at least two directors who are independent of management and
the Company. Each member of the Compensation Committee must be determined to be independent by the Board under the Corporate Governance
Guidelines on Director Independence adopted by the Board and under the NYSE American standards for nonemployee directors
and Rule
16b-3(b)(3)(i) of the rules and regulations promulgated under the Securities Exchange Act of 1934 and the requirements for “outside
directors” set forth in Treasury Regulations, Section 27(e)(3). Each member of the Committee is to be free of any relationship
that in the judgment of the Board from time to time may interfere with the exercise of his or her independent judgment. Each Committee
member is appointed annually subject to removal at any time by the Board and serves until his or her Committee appointment is
terminated by the Board. The Compensation Committee is composed of three directors, each of whom meets the standards described
above.
The
purposes of the Compensation Committee are to oversee the policies of the Company relating to compensation to be paid by the Company
to the Company’s principal executive officer (“CEO”) and any other officers designated by the Board and make
recommendations to the Board with respect to such policies, produce necessary reports and executive compensation for inclusion
in the Company’s proxy statement, in accordance with applicable rules and regulations, and monitor the development and implementation
of succession plans for the CEO and other key executives and make recommendations to the Board with respect to such plans.
The
Board of Directors determined that the primary forms of executive compensation should be the incentive system discussed above.
The Company’s performance is a key consideration (to the extent that such performance can be fairly attributed or related
to an executive’s performance) and each executive’s responsibilities and capabilities are key considerations. The
independent directors strive to keep executive compensation competitive for comparable positions in other corporations where possible.
In addition, the Compensation Committee believes in equity compensation wherein executives will be additionally rewarded based
on increasing the Company’s stockholder value. Base salaries are predicated on a number of factors, including:
● recommendation
of the CEO;
● knowledge
of similarly situated executives at other companies;
● the
executive’s position and responsibilities within the Company;
● the
Board of Directors’ subjective evaluation of the executive’s contribution to the Company’s performance;
● the
executive’s experience; and
● the
term of the executive’s tenure with the Company.
The
charter of the Compensation Committee was adopted on October 2, 2004, and the members of the Compensation Committee, all of whom
are independent within the meaning of the listing standards of the NYSE American and the Company’s Corporate Governance
Guidelines, are listed below. Since its formation, the Compensation Committee has annually reviewed its existing charter and regularly
performed the tasks described above.
COMPENSATION
COMMITTEE
Cecelia
Maynard
|
Raymond D. Roberts, Sr.
|
Dan
Locklear
|
Compensation Committee Interlocks
and Insider Participation
The
Company’s Compensation Committee is made up of nonemployee directors who have never served as officers of, or been employed
by the Company. None of the Company’s executive officers serve on a board of directors of any entity that has a director
or officer serving on this Committee.
Executive
Officers
The
only executive officer of the Company is Gene S. Bertcher, Chairman of the Board, President, Chief Executive and Financial Officer.
His age, term of service and all positions and offices with the Company and other information is described above under “PROPOSAL
1 - ELECTION OF DIRECTORS.”
Certain Relationships
and Related Transactions
Historically,
the Company has engaged in and may continue to engage in business transactions, including real estate partnerships, with related
parties. Management believes that all of the related party transactions represented the best investments available at the time
and were at least as advantageous to the Company as could have been obtained from unrelated third parties.
Beginning
in 2011, Pillar became the contractual advisor to the three other publically traded entities. In addition to the relationship
with Mr. Bertcher, the Company conducts business with Pillar, whereby Pillar provides the Company with services, including processing
payroll, acquiring insurance and other administrative matters. The Company believes that, by purchasing these services through
certain large entities, it can get lower costs and better service. Pillar does not charge the Company a fee for providing these
services. Pillar is a wholly owned subsidiary of Realty Advisors, Inc., which is the holder of 58.63% of the outstanding Common
Stock of the Company.
It
is the policy of the Company that all transactions between the Company and any officer or director, or any of their affiliates,
must be approved by nonmanagement members of the Board of Directors of the Company. All of the transactions described above were
so approved.
OTHER MATTERS
The
Board of Directors knows of no other matters that may be properly or should be brought before the Annual Meeting. However, if
any other matters are properly brought before the Annual Meeting, the persons named in the enclosed proxy or their substitutes
will vote in accordance with their best judgment on such matters.
FINANCIAL
STATEMENTS
The
audited financial statements of the Company, in comparative form, for the years ended December 31, 2018 and 2019, are contained
in the 2019 Annual Report to Stockholders, which was mailed to stockholders in April 2018. Such report and the financial statements
contained therein are not to be considered part of this solicitation.
SOLICITATION
OF PROXIES
THIS
PROXY STATEMENT IS FURNISHED TO STOCKHOLDERS TO SOLICIT PROXIES ON BEHALF OF THE BOARD OF DIRECTORS OF NEW CONCEPT ENERGY, INC.
The cost of soliciting proxies will be borne by the Company. Directors and officers of the Company may, without additional
compensation, solicit by mail, in person or by telecommunication.
FUTURE PROPOSALS
OF STOCKHOLDERS
Stockholder
proposals for our Annual Meeting to be held in 2021 must be received by us by December 31, 2020, and must otherwise comply with
the rules promulgated by the Securities and Exchange Commission to be considered for inclusion in our proxy statement for that
year. Any stockholder proposal, whether or not to be included in our proxy materials, must be sent to our Corporate Secretary
at 1603 LBJ Freeway, Suite 800, Dallas, Texas 75234.
COPIES
OF NEW CONCEPT ENERGY, INC.’S ANNUAL REPORT FOR THE FISCAL YEAR ENDED DECEMBER 31, 2019, TO THE SECURITIES AND EXCHANGE
COMMISSION ON FORM 10-K AS FILED WITH THE SECURITIES AND EXCHANGE COMMISSION (WITHOUT EXHIBITS) ARE AVAILABLE TO STOCKHOLDERS
WITHOUT CHARGE THROUGH OUR WEBSITE AT WWW.NEWCONCEPTENERGY.COM OR UPON WRITTEN REQUEST TO NEW CONCEPT ENERGY, INC., 1603
LBJ FREEWAY, SUITE 300, DALLAS, TEXAS 75234, ATTN: DIRECTOR OF INVESTOR RELATIONS.
Dated: November
16, 2020
By order
of the Board of Directors,
Gene
S. Bertcher, President
New
Concept Energy, Inc.
NOTICE OF INTERNET AVAILABILITY OF PROXY
MATERIAL
The Notice of Meeting, Proxy Statement and
Proxy Card
are available at www.newconceptenergy.com.
This Proxy is Solicited on Behalf of the
Board of Directors
The undersigned acknowledges receipt of the
notice of annual meeting of stockholders of New Concept Energy, Inc. (the “Company”), to be held at 1603 LBJ Freeway,
Suite 800, Dallas, Texas 75234, on December 16, 2020, beginning at 10:30 AM, Dallas Time, and the proxy statement in connection
therewith and appoints Gene S. Bertcher the undersigned’s proxy with full power of substitution for and in the name, place and
stead of the undersigned, to vote upon and act with respect to all of the shares of Common Stock and Series B Preferred Stock
of the Company standing in the name of the undersigned, or with respect to which the undersigned is entitled to vote and act,
at the meeting and at any adjournment thereof.
The undersigned directs
that the undersigned’s proxy be voted as follows:
|
1.
|
ELECTION OF DIRECTORS [ ] For all nominees (except as marked to the contrary below)
|
[ ] Withhold authority to
vote for all nominees listed below
Nominees: Gene S. Bertcher,
Richard W. Humphrey, Dan Locklear, Cecelia Maynard, Raymond D. Roberts, Sr.
_____________________________________________________________________________________
(Instruction: To withhold authority to vote
any individual nominee, write that nominee’s name on the line provided above.)
|
2.
|
RATIFICATION OF THE SELECTION OF SWALM & ASSOCIATES AS THE INDEPENDENT REGISTERED PUBLIC ACCOUNTING
FIRM FOR 2020 AND ANY INTERIM PERIOD.
|
[ ] FOR [ ] AGAINST [
] ABSTAIN
|
3.
|
IN THE DISCRETION OF THE PROXIES, ON ANY OTHER MATTER WHICH MAY PROPERLY COME BEFORE THE MEETING.
|
[ ] FOR [ ] AGAINST [
] ABSTAIN
This proxy will be voted as specified above.
If no specification is made, this proxy will be voted FOR the election of all the director nominees in 1 above and/or FOR the
ratification of the selection of Swalm & Associates in 2 above.
The undersigned hereby
revokes any proxy heretofore given to vote or act with respect to the Common Stock or Series B Preferred Stock of the Company and
hereby ratifies and confirms all that the proxies, their substitutes, or any of them may lawfully do by virtue hereof.
If more than one of the
proxies named shall be present in person or by substitute at the meeting or at any adjournment thereof, the majority of the proxies
so present and voting, either in person or by substitute, shall exercise all of the powers hereby given.
Please date, sign and mail this proxy in the
enclosed envelope. No postage is required.
Date: _____________________, 2020
______________________________________
Signature of Stockholder
_________________________________________
Signature of Stockholder
Please date this proxy and sign your name
exactly as it appears hereon. Where there is more than one owner, each should sign. When signing as an attorney, administrator,
executor, guardian or trustee, please add your title as such. If executed by a corporation, the proxy should be signed by a duly
authorized officer.
New Concept Energy (AMEX:GBR)
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New Concept Energy (AMEX:GBR)
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From Jul 2023 to Jul 2024