CKX LANDS, INC.

Previous wording

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 March 31, 2025, the Company has closed on the sale of 22 of the 39 lots. As of the date of this report the Company is actively marketing the remaining lots.

Current wording

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 June 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.

Previous wording

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.

Current wording

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 six months ended June 2025, the Company closed on the sale of one 25-acre lot and one 53-acre lot in Calcasieu parish in which it had a 100% ownership interest for net proceeds to the Company of $358,123, inclusive of a gain on the sale of $189,210.

Previous wording

The Company’s results of operations for the three months ended March 31, 2025 were driven primarily by increases in oil and gas and surface revenues, along with a decrease in general and administrative expenses. The decrease in general and administrative expenses is primarily due to a decrease in professional expenses and stock-based compensation expense.

Current wording

The Company’s results of operations for the six months ended June 30, 2025 as compared to the six months ended June 30, 2024 were driven primarily by an increase in oil and gas revenue along with 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 stock-based compensation expense.

Previous wording

Total revenues for the three months ended March 31, 2025 were $348,184, an increase of approximately 145.5% when compared with the same period in 2024. Total revenue consists of oil and gas, timber, and surface revenues. Components of revenues for the three months ended March 31, 2025 as compared to 2024, are as follows:

Current wording

Total revenues for the three months ended June 30, 2025 were $135,936, a decrease of approximately 86.8% 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 June 30, 2025 as compared to 2024, are as follows:

Previous wording

Oil and gas revenues were 77% and 58% of total revenues for the three months ended March 31, 2025 and 2024, respectively.

Current wording

Oil and gas revenues were 42% and 16% of total revenues for the three months ended June 30, 2025 and 2024, respectively.

Previous wording

CKX received oil and/or gas revenues from 71 and 58 wells during the three months ended March 31, 2025 and 2024, respectively.

Current wording

CKX received oil and/or gas revenues from 76 and 62 wells during the three months ended June 30, 2025 and 2024, respectively.

Previous wording

Net cash used in financing activities was $0 for the three months ended March 31, 2025 and 2024.

Current wording

Timber revenue was $0 for the three months ended June 30, 2025 and 2024.

Previous wording

Oil and gas revenues increased for the three months ended March 31, 2025, as compared to the three months ended March 31, 2024, by $186,008. The increase was due to an increase in the average gas sales prices as well as an increase in net oil and gas produced.

Current wording

Oil and gas revenues increased for the six months ended June 30, 2025, as compared to the six months ended June 30, 2024, by $82,348. The increase was due to an increase in the net oil and gas produced partially offset by a decrease in the average sales price.

Previous wording

Timber revenue was $0 and $2,275 for the three months ended March 31, 2025 and 2024, respectively. The decrease in timber revenues was due to normal business variations in timber customers’ harvesting.

Current wording

Timber revenue was $0 and $2,275 for the six months ended June 30, 2025 and 2024, respectively. The decrease in timber revenues was due to normal business variations in timber customers’ harvesting.

Previous wording

Surface revenues increased for the three months ended March 31, 2025, as compared to the three months ended March 31, 2024, by $22,602. The increase in surface revenue was due to an increase in farm rental income as well as higher surface lease income.

Current wording

Surface revenues decreased for the six months ended June 30, 2025, as compared to the six months ended June 30, 2024, by $765,237. The decrease in surface revenue was due to lower right of way income, partially offset by higher surface lease income.

Previous wording

Costs and Expenses –Three Months Ended March 31, 2025

Current wording

Costs and Expenses –Three and Six Months Ended June 30, 2025

Previous wording

Oil and gas costs increased for the three months ended March 31, 2025 as compared to the three months ended March 31, 2024 by $10,344. The increase is primarily due to an increase in production taxes.

Current wording

Oil and gas costs increased for the three and six months ended June 30, 2025 as compared to the three and six months ended June 30, 2024 by $26 and $10,370. This variance is due to the normal variations in year to year costs.

Previous wording

Timber costs decreased for the three months ended March 31, 2025 as compared to the three months ended March 31, 2024 by $209. Timber costs are related to general management of the Company’s timberland. The decrease is primarily due to decreased timber management costs.

Current wording

Timber costs decreased for the three months ended June 30, 2025, as compared to the three months ended June 30, 2024 by $3,866. Timber costs decreased for the six months ended June 30, 2025, as compared to the six months ended June 30, 2024, by $4,076. Timber costs are related to general management of the Company’s timberland. The decrease is primarily due to decreased timber management costs.

Previous wording

General and administrative expenses decreased for the three months ended March 31, 2025 as compared to the three months ended March 31, 2024 by $352,360. This is primarily due to a decrease in share-based compensation expense along with a decrease in professional fees.

Current wording

General and administrative expenses decreased for the three months ended June 30, 2025, as compared to the three months ended June 30, 2024, by $352,323. This is primarily due to a decrease in professional fees. General and administrative expenses decreased for the six months ended June 30, 2025, as compared to the six months ended June 30, 2024, by $704,683. This is primarily due to a decrease in professional fees as well as a decrease in share-based compensation expense.

Previous wording

Current assets totaled $9,751,251 and current liabilities equaled $259,796 at March 31, 2025.

Current wording

Current assets totaled $9,941,535 and current liabilities equaled $174,706 at June 30, 2025.

Previous wording

Net cash provided by (used in) operating activities was $118,664 and $(337,838) for the three months ended March 31, 2025 and 2024, respectively. The increase in cash provided by operating activities was attributable to an increase to net income partially offset by an increase in current assets.

Current wording

Net cash provided by operating activities was $94,026 and $353,909 for the six months ended June 30, 2025 and 2024, respectively. The decrease in cash provided by operating activities was attributable to an increase in net income, offset by unfavorable changes in working capital, including a greater increase in current assets and a decrease in current liabilities in 2025.

Previous wording

Net cash provided by investing activities was $172,243 and $34,485 for the three months ended March 31, 2025 and 2024, respectively. The increase to net cash provided by investing activities resulted from purchases of certificates of deposits of $6,502,665, offset by the maturity of certificates of deposit of $6,674,908.

Current wording

Net cash provided by investing activities was $4,100,527 and $175,067 for the six months ended June 30, 2025 and 2024, respectively. For the six months ended June 30, 2025, this resulted from maturity of certificates of deposit of $10,493,240 and proceeds from the sale of fixed assets of $358,123, offset by purchases of certificates of deposit of $6,750,837. For the six months ended June 30, 2024, this resulted from maturity of certificates of deposit of $1,534,485 and proceeds from the sale of fixed assets of $140,582, offset by purchases of certificates of deposit of $1,500,000.

Previous wording

There were no changes in our significant accounting policies and estimates during the three months ended March 31, 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.

Current wording

There were no changes in our significant accounting policies and estimates during the six months ended June 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.

Previous wording

During the three months ended March 31, 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).

Current wording

During the six months ended June 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).