Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Dec. 31, 2016 | Feb. 09, 2017 | |
Document And Entity Information | ||
Entity Registrant Name | CAMBER ENERGY, INC. | |
Entity Central Index Key | 1,309,082 | |
Document Type | 10-Q | |
Trading Symbol | LEI | |
Document Period End Date | Dec. 31, 2016 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --03-31 | |
Entity Well-known Seasoned Issuer | No | |
Entity Voluntary Filer | No | |
Entity's Reporting Status Current | Yes | |
Entity Filer Category | Smaller Reporting Company | |
Entity Common Stock, Shares Outstanding | 23,766,733 | |
Document Fiscal Period Focus | Q3 | |
Document Fiscal Year Focus | 2,017 |
CONSOLIDATED BALANCE SHEETS (Un
CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) | Dec. 31, 2016 | Mar. 31, 2016 |
Current Assets | ||
Cash | $ 1,980,234 | $ 197,662 |
Restricted Cash | 2,398,929 | |
Accounts Receivable | 2,111,782 | 93,523 |
Inventories | 202,677 | 194,997 |
Other Current Assets | 109,667 | 56,805 |
Total Current Assets | 6,803,289 | 542,987 |
Property and Equipment | ||
Oil and Gas Properties (Full Cost Method) | 100,555,959 | 48,518,512 |
Other Property and Equipment | 437,352 | 420,351 |
Total Property and Equipment | 100,993,311 | 48,938,863 |
Accumulated Depletion, Depreciation and Amortization | (36,577,780) | (34,748,434) |
Total Property and Equipment, Net | 64,415,531 | 14,190,429 |
Other Assets | 121,369 | 58,716 |
Total Assets | 71,340,189 | 14,792,132 |
Current Liabilities | ||
Accounts Payable | 2,690,605 | 2,423,949 |
Common Stock Payable | 23,571 | 71,572 |
Accrued Expenses | 768,713 | 494,232 |
Notes Payable, Net of Discount | 202,000 | |
Current Portion of Long-Term Notes Payable, Net of Discount | 9,958,110 | 7,153,734 |
Convertible Notes Payable, Net of Discount | 739,817 | |
Total Current Liabilities | 13,440,999 | 11,085,304 |
Long-term Notes Payable, Net of Discount | 33,619,385 | |
Asset Retirement Obligations | 2,005,746 | 1,179,170 |
Derivative Liability | 59,388 | 126,960 |
Total Liabilities | 49,125,518 | 12,391,434 |
Stockholders' Equity | ||
Stock Dividends Distributable But Not Issued | 852,516 | |
Additional Paid-in Capital | 115,554,060 | 58,591,988 |
Accumulated Deficit | (113,540,996) | (56,966,795) |
Total Stockholders' Equity | 22,214,671 | 2,400,698 |
Total Liabilities and Stockholders' Equity | 71,340,189 | 14,792,132 |
Series B Preferred Stock [Member] | ||
Stockholders' Equity | ||
Preferred Stock | 14,898,038 | |
Series C Preferred Stock [Member] | ||
Stockholders' Equity | ||
Preferred Stock | $ 4,428,955 | |
Series A Preferred Stock [Member] | ||
Stockholders' Equity | ||
Preferred Stock | $ 773,900 |
CONSOLIDATED BALANCE SHEETS (U3
CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - $ / shares | Dec. 31, 2016 | Mar. 31, 2016 |
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, authorized | 100,000,000 | 100,000,000 |
Common stock, issued | 22,097,927 | 1,605,224 |
Common stock, outstanding | 22,097,927 | 1,605,224 |
Series A Preferred Stock [Member] | ||
Preferred stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Preferred stock, authorized | 2,000 | 2,000 |
Preferred stock, issued | 0 | 500 |
Preferred stock, outstanding | 0 | 500 |
Series B Preferred Stock [Member] | ||
Preferred stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Preferred stock, authorized | 600,000 | 600,000 |
Preferred stock, issued | 552,000 | 0 |
Preferred stock, outstanding | 552,000 | 0 |
Series C Preferred Stock [Member] | ||
Preferred stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Preferred stock, authorized | 500,000 | 500,000 |
Preferred stock, issued | 495 | 0 |
Preferred stock, outstanding | 495 | 0 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | |
Operating Revenues | ||||
Crude Oil | $ 484,016 | $ 183,705 | $ 1,139,152 | $ 867,406 |
Natural Gas | 636,619 | 805,617 | ||
NGL | 790,185 | 1,013,809 | ||
Total Revenues | 1,910,820 | 183,705 | 2,958,578 | 867,406 |
Operating Expenses | ||||
Lease Operating Expenses | 1,298,475 | 182,449 | 2,074,999 | 597,932 |
Severance and Property Taxes | 89,606 | 27,961 | 165,174 | 98,456 |
Depreciation, Depletion, Amortization, and Accretion | 1,286,684 | 204,069 | 1,946,366 | 739,107 |
Impairment of Oil and Gas Properties | 48,990,520 | |||
General and Administrative | 1,310,119 | 675,827 | 3,009,540 | 1,854,646 |
Total Expenses | 3,984,884 | 1,090,306 | 56,186,599 | 3,290,141 |
Operating Loss | (2,074,064) | (906,601) | (53,228,021) | (2,422,735) |
Other Expense (Income) | ||||
Interest Expense | 1,457,827 | 51,394 | 2,384,716 | 557,613 |
Other Expense (Income), Net | 865,685 | 65,132 | 961,465 | 27,344 |
Total Other Expenses | 2,323,512 | 116,526 | 3,346,181 | 584,957 |
Net Loss | $ (4,397,576) | $ (1,023,127) | $ (56,574,202) | $ (3,007,692) |
Net Loss Per Common Share | ||||
Basic and Diluted (in dollars per share) | $ (0.20) | $ (0.70) | $ (5.64) | $ (2.09) |
Weighted Average Number of Common Shares Outstanding | ||||
Basic and Diluted (in shares) | 21,782,632 | 1,463,590 | 10,039,130 | 1,438,573 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) | 9 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Cash Flows from Operating Activities | ||
Net Loss | $ (56,574,202) | $ (3,007,692) |
Adjustments to reconcile net losses to net cash used in operating activities: | ||
Depreciation, Depletion, Amortization and Accretion | 1,946,366 | 739,107 |
Impairment of Oil and Gas Properties | 48,990,520 | |
Share-Based Compensation | 86,484 | 129,581 |
Amortization of Discount on Notes | 1,423,203 | 191,460 |
Change in Fair Value of Derivative Liability | (67,572) | |
(Gain) Loss on Settlement of Account Payable | (44,278) | 20,519 |
Loss on Sale of Property and Equipment | 602 | |
Changes in Components of Working Capital and Other Assets | ||
Accounts Receivable | (1,382,777) | 77,908 |
Inventories | (7,680) | (477) |
Prepaid Expenses and Other Current Assets | (52,862) | 53,753 |
Accounts Payable and Accrued Expenses | (595,328) | 610,026 |
Net Cash Used in Operating Activities | (6,278,126) | (1,185,213) |
Investing Cash Flows | ||
Cash Paid for Oil and Gas Property Development Costs | (1,552,026) | (149,453) |
Cash Paid for Segundo Acquisition | (4,975,000) | |
Proceeds from Sale of Oil and Gas Properties | 347,600 | |
Proceeds from Victory Settlement | 54,021 | |
Cash Paid for Deposits | (62,653) | |
Cash Paid for Other Property and Equipment | (17,001) | |
Deposit for Acquisition of Property, Plant and Equipment | 1,628 | |
Net Cash Used in Investing Activities | (6,606,680) | 253,796 |
Financing Cash Flows | ||
Proceeds from Issuance of Notes Payable | 1,500,000 | 250,000 |
Proceeds from the Exercise of Warrants | 4,072,500 | |
Principal Repayments on Notes Payable | (1,500,000) | (117,000) |
Proceeds from Issuance of Long-term Notes Payable | 41,640,000 | |
Principal Repayments on Long-Term Notes Payable | (33,136,615) | |
Proceeds from Issuance of Convertible Notes | 150,000 | 800,000 |
Proceeds from the Issuance of Series C Preferred Stock and Warrants | 5,000,000 | |
Bond Sinking Fund Deposit | (2,398,929) | |
Porceeds from Sale of Treasury Stock | 104,754 | |
Stock Placement Fees Paid | (659,578) | (22,013) |
Net Cash Provided by Financing Activities | 14,667,378 | 1,015,741 |
Increase in Cash | 1,782,572 | 84,324 |
Cash at Beginning of the Period | 197,662 | 166,597 |
Cash at End of the Period | $ 1,980,234 | $ 250,921 |
GENERAL
GENERAL | 9 Months Ended |
Dec. 31, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
GENERAL | NOTE 1 - GENERAL Incorporated in Nevada in December 2003 under the name Panorama Investments Corp., the Company changed its name to Lucas Energy, Inc. effective June 9, 2006 and effective January 4, 2017, the Company changed its name to Camber Energy, Inc. The accompanying unaudited interim consolidated financial statements of Camber Energy, Inc. (“Camber” or the “Company”) have been prepared in accordance with accounting principles generally accepted in the United States and the rules of the Securities and Exchange Commission, and should be read in conjunction with the audited financial statements and notes thereto contained in Camber’s annual report filed with the SEC on Form 10-K for the year ended March 31, 2016. In the opinion of management, all adjustments, consisting of normal recurring adjustments, necessary for a fair presentation of financial position and the results of operations for the interim periods presented have been reflected herein. The results of operations for interim periods are not necessarily indicative of the results to be expected for the full year. Notes to the consolidated financial statements which would substantially duplicate the disclosures contained in the audited financial statements for the most recent fiscal year 2016 as reported in the Form 10-K have been omitted. Our fiscal year ends on the last day of March of each year. We refer to the twelve-month periods ended March 31, 2017 and 2016 as our 2017 and 2016 fiscal years, respectively. On July 15, 2015, the Company effected a 1-for-25 reverse stock split of all of the outstanding shares of the Company’s common stock. Proportional adjustments were also made to the conversion and exercise prices of the Company’s outstanding convertible preferred stock, warrants and stock options, and to the number of shares issued and issuable under the Company’s stock incentive plans. All issued and outstanding shares of common stock, conversion terms of preferred stock, options and warrants to purchase common stock and per share amounts contained in the financial statements have been retroactively adjusted to reflect the reverse split for all periods presented. |
LIQUIDITY AND GOING CONCERN CON
LIQUIDITY AND GOING CONCERN CONSIDERATIONS | 9 Months Ended |
Dec. 31, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
LIQUIDITY AND GOING CONCERN CONSIDERATIONS | NOTE 2 – LIQUIDITY AND GOING CONCERN CONSIDERATIONS At December 31, 2016, the Company’s total current liabilities of $13.4 million exceeded its total current assets of $6.8 million, resulting in a working capital deficit of $6.6 million, while at March 31, 2016, the Company’s total current liabilities of $11.1 million exceeded its total current assets of $0.6 million, resulting in a working capital deficit of $10.5 million. The $3.9 million decrease in the working capital deficit is primarily related to $6.2 million in cash and restricted cash received subsequent to March 31, 2016, together with additional receivables, each relating to the closing of the transactions contemplated by the Asset Purchase Agreement described below, which was completed in August 2016, offset by $2.3 million in additional net borrowings and payables. On December 30, 2015, we entered into an Asset Purchase Agreement (the “Asset Purchase Agreement”) as amended from time to time to acquire from twenty-three different entities and individuals (the “Sellers”), working interests in producing properties and undeveloped acreage (the “Acquisition”), which acquisition transaction was completed on August 25, 2016. The assets acquired include varied interests in two largely contiguous acreage blocks in the liquids-rich Mid-Continent region. In connection with the closing of the acquisition, we assumed approximately $30.6 million of commercial bank debt, issued 13,009,664 shares of common stock to certain of the Sellers, issued 552,000 shares of Series B Preferred Stock to one of the Sellers and its affiliate, and paid $4,975,000 in cash to certain of the Sellers. The effective date of the Acquisition was April 1, 2016. Pursuant to a Letter Agreement we entered into, at the closing of the Acquisition, with RAD2 Minerals, Ltd. (“RAD2”), one of the Sellers, which is owned and controlled by Richard N. Azar II, who was appointed as our Chairman on August 26, 2016, RAD2 agreed to accept full financial liability for any and all deficiencies between the “Agreed Assets Value” set forth in the Asset Purchase Agreement of $80,697,710, and the mutually agreed upon value of the assets delivered by the Sellers at the closing of the Acquisition, up to an aggregate of $1,030,941 (as applicable, the “Deficiency”). The Company accepted additional oil and gas producing properties and two salt water disposal facilities from the Sellers with an approximate value of $1.0 million to resolve this Deficiency. As discussed in “Note 6 – Notes Payable and Debenture”, we borrowed $40 million from International Bank of Commerce (“IBC”) effective August 25, 2016. The proceeds of the loan were used to repay and refinance approximately $30.6 million of indebtedness owed by certain of the Sellers to IBC as part of the closing of the Acquisition. On April 6, 2016, we entered into a Securities Purchase Agreement (the “Securities Purchase Agreement”) with an accredited institutional investor (the “Investor”), pursuant to which we sold and issued a redeemable convertible subordinated debenture, with a face amount of $530,000, initially convertible into 163,077 shares of common stock (subject to certain conversion premiums) at a conversion price equal to $3.25 per share and a warrant to initially purchase 1,384,616 shares of common stock (subject to adjustment thereunder) at an exercise price equal to $3.25 per share (the “First Warrant”). The Investor purchased the debenture at a 5.0% original issue discount for the sum of $500,000 and has exercised the First Warrant in full as described below for the sum of $4.5 million. Also on April 6, 2016, we entered into a Stock Purchase Agreement with the Investor, pursuant to which we agreed, subject to certain conditions, to issue up to 527 shares of Series C redeemable convertible preferred stock (the “Series C Preferred Stock”) at a 5% original issue discount, convertible into 1,618,462 shares of common stock (subject to certain conversion premiums) at a conversion price of $3.25 per share, and a warrant to initially purchase 1,111,112 shares of common stock at an exercise price of $4.50 per share (the “Second Warrant”). Under the terms of the Stock Purchase Agreement, the Second Warrant and 53 shares of Series C Preferred Stock were sold and issued for $500,000 on September 2, 2016, and the remaining 474 shares of Series C Preferred Stock were sold and issued for $4.5 million on November 17, 2016. In July and August 2016, RAD2 advanced the Company an aggregate of $350,000. Also, in August 2016, two other Sellers advanced the Company an aggregate of $200,000 ($100,000 each). These advances did not accrue interest and had no stated maturity date. Additionally, in August 2016, RAD2 loaned us $1.5 million pursuant to a promissory note. The promissory note did not accrue interest for the first month it was outstanding and accrued interest at the rate of 5% per annum thereafter until paid in full. The Company repaid the promissory note in full and all amounts advanced by RAD2 and the two other Sellers in October 2016. On October 7, 2016, the Investor exercised the First Warrant in full and was due 1,384,616 shares of common stock upon exercise thereof and an additional 2,252,735 shares of common stock in consideration for the conversion premium due thereon. A total of 810,000 shares were issued to the Investor on October 7, 2016, with the remaining shares being held in abeyance until such time as it would not result in the Investor exceeding its beneficial ownership limitation (4.99% of the Company’s outstanding common stock). The Company received gross proceeds of $4,500,000 from the exercise of the First Warrant and paid placement agent fees of $427,500 for services rendered in connection with the First Warrant. Pursuant to the terms of the First Warrant, the number of shares due in consideration for the conversion premium increases as the annual rate of return under the First Warrant increases, including by 10% upon the occurrence of certain triggering events (which had occurred by the October 7, 2016 date of exercise), to 17% per annum upon the exercise of the First Warrant. Additionally, as the conversion rate for the conversion premium is currently 85% of the lowest daily volume weighted average price during the measuring period, less $0.10 per share of common stock not to exceed 85% of the lowest sales prices on the last day of such period less $0.10 per share, the number of shares issuable in connection with the conversion premium increases as the trading price of our common stock decreases, and the trading price of our common stock has decreased since the date the First Warrant was exercised, triggering a further reduction in the conversion price of the conversion premium and an increase in the number of shares due the Investor in connection with the conversion of the amount owed in connection with the conversion premium. In total, an aggregate of 7,476,680 shares of common stock were due as of December 31, 2016 (and an aggregate of approximately 7.7 million shares of common stock were due as of the date of this filing) in connection with the conversion premium associated with the First Warrant, of which an aggregate of 3,615,384 shares had been issued to the Investor as of December 31, 2016 (and as of the date of this filing), in connection with various requests from the Investor for the issuance of additional shares of common stock out of the total shares held in abeyance for such aggregate exercise, with the remaining shares being held in abeyance until such time as it would not result in the Investor exceeding its beneficial ownership limitation (4.99% of the Company’s outstanding common stock) and until such time as a sufficient number of shares have been registered to allow for the issuance of registered shares to the Investor. Additionally, due to the above, the total number of shares issued or held in abeyance for issuance for the exercise and payment of conversion premium under the First Warrant may further increase during the measuring period. The measuring period continues until the date ending 60 days after we deliver to the Investor the last of the total shares due under the First Warrant. At December 31, 2016, the Company had $6,959,025 due under the $7.5 million Letter Loan Agreement (as amended, modified, restated and revised to date, the “Rogers Loan”) originally entered into with Louise H. Rogers (“Rogers”) on August 13, 2013, the maturity date of which Rogers Loan was amended effective January 31, 2017, from January 31, 2017 to April 30, 2017. We also paid $9,000 to Ms. Rogers and $9,000 to Robertson Global Credit, LLC, the servicer of the Rogers Loan, in connection with the amendment. During the remainder of the quarter ended March 31, 2017, the Company intends to negotiate new financing extension terms prior to the new maturity date of April 30, 2017. Effective January 31, 2017, the Company borrowed $1,000,000 from Alan Dreeben, one of the Company’s directors, pursuant to a short-term promissory note. The short-term promissory note has a principal balance of $1,050,000 (the $1,000,000 principal amount borrowed plus a $50,000 original issue discount), accrues interest at 6% per annum and has a maturity date of January 31, 2018 and contains standard and customary events of default. As additional consideration for Mr. Dreeben agreeing to make the loan, we agreed to issue Mr. Dreeben 40,000 restricted shares of common stock (which had not been issued as of the date of this report or included in the number of issued and outstanding shares disclosed herein). The Company used the proceeds from the loan to pay the majority of the leasehold cost associated with our entry into a Lease Acquisition and Participation Agreement with a privately-held, Houston, Texas-based oil and gas holding company (see discussion below under “Note 12 – Subsequent Events”). In addition to the transactions noted above, Camber is currently discussing potential financing transactions, which we plan to raise through the sale of debt or equity in order to fulfill our current capital requirements, which we believe, if finalized and completed, will ensure the future viability of the Company. Additionally, due to our current capital structure and the nature of oil and gas interests, i.e., that rates of production generally decline over time as oil and gas reserves are depleted, if we are unable to obtain the necessary financing to drill additional wells and develop our proved undeveloped reserves (“PUDs”); coupled with the low commodity prices over the last twelve months, we believe that our revenues will continue to decline over time. Therefore, we may be forced to scale back our business plan, sell assets to satisfy outstanding debts or take other remedial steps which may include seeking bankruptcy protection. If the Company is required to seek financing, we may be prohibited from undertaking certain types of funding transactions by our prior funding agreements, such financings may not be available or, if available, may not be on terms acceptable to the Company. Accordingly, the financial statements do not include any adjustments related to the recoverability of assets or classification of liabilities that might be necessary should the Company be unable to continue as a going concern. The ability of the Company to continue as a going concern is dependent upon its ability to raise capital to meet its obligations and develop its oil and gas properties to attain profitable operations. These conditions raise substantial doubt about our ability to continue as a going concern for the next twelve months. The accompanying financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 9 Months Ended |
Dec. 31, 2016 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE 3 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The Company has provided a discussion of significant accounting policies, estimates and judgments in its 2016 Annual Report. There have been no changes to the Company’s significant accounting policies since March 31, 2016. |
PROPERTY AND EQUIPMENT
PROPERTY AND EQUIPMENT | 9 Months Ended |
Dec. 31, 2016 | |
Property and Equipment | |
PROPERTY AND EQUIPMENT | NOTE 4 – PROPERTY AND EQUIPMENT Oil and Gas Properties Camber uses the full cost method of accounting for oil and gas producing activities. Costs to acquire mineral interests in oil and gas properties, to drill and equip exploratory wells used to find proved reserves, and to drill and equip development wells including directly related overhead costs and related asset retirement costs are capitalized. Properties not subject to amortization consist of acquisition, exploration and development costs, which are evaluated on a property-by-property basis. Amortization of these unproved property costs begins when the properties become proved or their values become impaired and the corresponding costs are added to the capitalized costs subject to amortization. Costs of oil and gas properties are amortized using the units of production method. Amortization expense calculated per equivalent physical unit of production amounted to $13.01 per barrel of oil equivalent (“BOE”) for the three months ended December 31, 2016, and was $31.78 per BOE for the three months ended December 31, 2015. Amortization expense calculated per equivalent physical unit of production amounted to $13.81 per BOE for the nine months ended December 31, 2016, and was $31.85 per BOE for the nine months ended December 31, 2015. In applying the full cost method, Camber performs an impairment test (ceiling test) at each reporting date, whereby the carrying value of property and equipment is compared to the “estimated present value,” of its proved reserves discounted at a 10-percent interest rate of future net revenues, based on current economic and operating conditions at the end of the period, plus the cost of properties not being amortized, plus the lower of cost or fair market value of unproved properties included in costs being amortized, less the income tax effects related to book and tax basis differences of the properties. The price used in the ceiling test is the simple average first of the month price for the prior 12 months. If capitalized costs exceed this limit, the excess is charged as an impairment expense. As of December 31, 2016, no impairment of oil and gas properties was indicated, aside from the impairment of $49.0 million recognized in conjunction with the Acquisition. All of Camber’s oil and gas properties are located in the United States. Below are the components of Camber’s oil and gas properties recorded at: December 31, March 31, 2016 2016 Proved leasehold costs $ 37,356,943 $ 10,266,551 Costs of wells and development 61,725,817 37,534,624 Capitalized asset retirement costs 1,473,199 717,337 Total oil and gas properties 100,555,959 48,518,512 Accumulated depreciation and depletion (36,204,667 ) (34,416,407 ) Net capitalized costs $ 64,351,292 $ 14,102,105 In August 2016, our wholly-owned subsidiary, CATI Operating, LLC (“CATI”), entered into an agreement to participate in the drilling and completion of certain Eagle Ford wells under a joint operating agreement with Lonestar Resources US, Inc. (“Lonestar”) to conduct improvement maintenance operations on the existing assets of CATI. The agreement with Lonestar covers over 1,450 gross acres and Camber’s participation will vary from an 8% to a 14% working interest in the units. The Company capitalized approximately $800,000 in development costs associated with the Cyclone #9H and #10H wells during the nine months ended December 31, 2016. On August 25, 2016, the Company completed the Acquisition and acquired working interests in producing properties and undeveloped acreage from the Sellers (see “Note 2 – Liquidity and Going Concern Considerations”). The assets acquired include varied interests in two largely contiguous acreage blocks in the liquids-rich Mid-Continent region. As consideration for the Acquisition of the acquired assets, the Company assumed approximately $30.6 million of commercial bank debt, issued 13,009,664 shares of common stock to certain of the Sellers valued at the grant date fair value, issued 552,000 shares of Series B Preferred Stock to one of the Sellers and its affiliate (see “Note 7 – Stockholders’ Equity”) valued at the grant date fair value, and paid $4,975,000 in cash to certain of the Sellers. The effective date of the Acquisition was April 1, 2016. The following tables summarize the purchase price and allocation of the purchase price to the net assets acquired in connection with the Acquisition: Consideration Given Purchase Price on August 25, 2016: Fair value of common stock issued $ 49,176,530 Fair value of Series B Preferred Stock issued 14,898,038 Assumption of debt 30,595,256 Cash at Closing 4,975,000 Total purchase price $ 99,644,824 Net Assets Acquired Accounts receivable $ 635,482 Total current assets acquired 635,482 Oil and gas properties 50,774,684 Total assets acquired 51,410,166 Asset retirement obligations (755,862 ) Total liabilities acquired (755,862 ) Net assets acquired 50,654,304 Impairment of oil and gas properties 48,990,520 Total Purchase Price $ 99,644,824 The proceeds from the $40 million loan from IBC were as follows: Use of Proceeds Assumption of debt $ 30,595,256 Cash funding (due at closing) 4,975,000 Loan Commitment fee (due at closing) 200,000 Lien Payoff (due at closing) 72,657 Restricted cash (received at closing) 3,360,000 Cash (received at closing) 797,087 Debt payable after closing $ 40,000,000 |
ASSET RETIREMENT OBLIGATIONS
ASSET RETIREMENT OBLIGATIONS | 9 Months Ended |
Dec. 31, 2016 | |
Asset Retirement Obligation Disclosure [Abstract] | |
ASSET RETIREMENT OBLIGATIONS | NOTE 5 – ASSET RETIREMENT OBLIGATIONS The following table presents the reconciliation of the beginning and ending aggregate carrying amounts of long-term legal obligations associated with the retirement of oil and gas property and equipment for the nine-month period ended December 31, 2016 and 2015, respectively. Camber does not have any short-term asset retirement obligations as of December 31, 2016 and 2015, respectively. 2016 2015 Carrying amount at beginning of period - March 31, 2016 $ 1,179,170 $ 1,051,694 Acquisition of oil and gas properties 755,862 — Accretion 70,714 95,484 Carrying amount at end of period – December 31, 2016 $ 2,005,746 $ 1,147,148 |
NOTES PAYABLE AND DEBENTURE
NOTES PAYABLE AND DEBENTURE | 9 Months Ended |
Dec. 31, 2016 | |
Debt Disclosure [Abstract] | |
NOTES PAYABLE AND DEBENTURE | NOTE 6 – NOTES PAYABLE AND DEBENTURE The Company’s notes payable and debenture consisted of the following: December 31, March 31, 2016 2016 Note Payable - Rogers $ 6,959,025 $ 7,153,734 Note Payable - Dreeben — 275,000 Convertible Notes Payable - Silver Star — 800,000 Convertible Notes Payable - HFT — 450,000 Debenture 530,000 — Note Payable - IBC 39,038,929 — 46,527,954 8,678,734 Unamortized debt discount (2,950,459 ) (583,183 ) Total Notes Payable and Debenture 43,577,495 8,095,551 Less current portion of long-term debt (9,958,110 ) (8,095,551 ) Long-term portion $ 33,619,385 $ — Rogers Loan and Promissory Note Letter Loan Agreement At December 31, 2016, the Company had $6,959,025 due under the $7.5 million Letter Loan Agreement originally entered into with Rogers on August 13, 2013. Amortization of debt discount of $21,323 was recorded during the year ended March 31, 2016 while no unamortized discount remained as of December 31, 2016. Currently, the Rogers Loan has a maturity date of April 30, 2017, and we have agreed to pay all professional fees incurred by Rogers and to pay Rogers $39,000 in lieu of interest on the Rogers Loan as well as all operating income of collateralized assets (beginning October 1, 2015). Also, we agreed to make principal payments to Rogers from certain insurance proceeds to be received, which we have not received to date. For the months of January, February, March, June and July 2016, the Company did not make the required monthly principal payments due pursuant to the terms of the Rogers loan as amended. Instead, the Company and the loan administrator agreed to settle any outstanding administration and legal fees in lieu of the principal payments. The Company paid approximately $98,000 related to the fees and effective July 5, 2016 and obtained a waiver for the nonpayment of the principal amounts through July 2016. We have also not made the $39,000 required monthly fee payments on the Rogers Loan since August 2016, however, we have made all required principal payments, and Rogers has not sent any notice of default or taken any action in connection therewith. Additionally, per a prior amendment, we transferred all of our oil and gas interests and equipment to our then newly formed wholly-owned Texas subsidiary, CATI Operating LLC, which clarified that following the transfer, Rogers had no right to foreclose upon the Company (at the Nevada corporate parent level) upon the occurrence of an event of default under the Rogers Loan, and that instead Rogers would only take action against CATI and its assets and required Rogers to release all UCC and other security filings on the Company (provided that Rogers is allowed to file the same filings on CATI and its assets). Subsequently, we formally assigned all of our oil and gas interests and equipment to CATI pursuant to an Assignment and Bill of Sale dated December 16, 2015. On February 1, 2017, the Company agreed to extend the maturity date of the Rogers Loan from January 31, 2017 to April 30, 2017. As consideration, the Company paid $9,000 to Ms. Rogers and $9,000 to Robertson Global Credit, LLC, the servicer of the Amended Note. During the remainder of the quarter ended March 31, 2017, the Company intends to negotiate new financing and extension terms prior to the new maturity date of April 30, 2017. Promissory Note On August 25, 2016, and effective on August 15, 2016, our wholly-owned subsidiary, CATI borrowed $1 million from the Company’s senior lender, Rogers. The amount borrowed accrued interest at the rate of 12% per annum (18% upon the occurrence of an event of default) and was due and payable on or before November 9, 2016. The note is secured by the assets of CATI and none of our other assets, including those acquired in the Acquisition. Pursuant to the terms of the note, a total of 80% of all cash flow generated by CATI was required to first be paid to satisfy amounts owed under the August 2016 Note, and then to amounts owed under the Letter Loan, with the remaining 20% of such cash flow used by CATI for lease and other operating expenses and capital expenditures approved by Rogers’ designated representatives. In connection with our entry into the August 2016 note, we paid a loan origination fee of $50,000 and agreed to pay all fees of Rogers’ counsel in connection with the preparation and negotiation of the note. The $50,000 loan origination fee was recorded as a debt discount and was amortized through interest expense using the effective interest method over the term of the note. As additional consideration, CATI issued Robertson Global Credit, LLC, the administrator of the Rogers Loan, a 2% overriding royalty interest in the wellbores of the Cyclone #9H and Cyclone #10H wells. On October 11, 2016, we paid Rogers the full amount of principal due on the promissory note of $1.0 million and also paid the full amount of interest due of $15,667 on October 13, 2016. As such, the promissory note was no longer outstanding as of December 31, 2016. Silver Star Line of Credit On August 30, 2015, we entered into a Non-Revolving Line of Credit Agreement with Silver Star Oil Company (“Silver Star”). The line of credit provided us the right to issue up to $2.4 million in convertible promissory notes to Silver Star. To date, Camber has drawn $1,000,000 under the line of credit for the months of October, November, December 2015 and January and February 2016. The convertible notes contained a beneficial conversion feature with a combined intrinsic value of $687,987 for the five notes, which was recognized as a debt discount and is being amortized through interest expense using the effective interest method over the term of the notes. Convertible notes totaling $800,000 had been assigned by Silver Star to Rockwell Capital Partners (“Rockwell”), of which Rockwell has fully converted a total of $830,562 of the principal and interest due on such convertible notes outstanding into shares of our common stock at a conversion price of $1.50 per share, for an aggregate of 553,708 shares. On July 15, 2016, pursuant to an assignment of convertible promissory note agreement, the Company was advised that the last $200,000 convertible promissory note sold to Silver Star on February 20, 2016 was assigned by Silver Star to Texas Capital & Assets LLC. On September 28, 2016, Texas Capital & Assets LLC converted $207,566 of principal and interest due on such convertible note into shares of our common stock at a conversion price of $1.50 per share, for an aggregate of 138,377 shares. As of December 31, 2016, the Company had no remaining Silver Star convertible notes outstanding as all outstanding notes had been converted into shares of the Company’s common stock. HFT Convertible Promissory Note Purchase Agreement and Convertible Promissory Notes On March 29, 2016, Camber entered into a Convertible Promissory Note Purchase Agreement with HFT Enterprises, LLC (“HFT”). Pursuant to the Note Purchase Agreement, we agreed to sell an aggregate of $600,000 in convertible notes, including $450,000 in convertible notes purchased on the date of the parties’ entry into the agreement, and $150,000 in convertible notes purchased by Debra Herman, the wife of Michael Herman, the principal of HFT, on April 26, 2016. We also granted Mrs. Herman warrants to purchase 124,285 shares of common stock with an exercise price of $1.50 per share on April 26, 2016, when the final loan was made pursuant to the terms of the agreement. Each of the convertible notes are due and payable twelve months from their issuance date, accrue interest at the rate of 6% per annum (15% upon the occurrence of an event of default), and allow the holder thereof the right to convert the principal and interest due thereunder into common stock of the Company at a conversion price of $1.50 per share, provided that the total number of shares of common stock issuable upon conversion of the convertible notes could not exceed 19.9% of our outstanding shares of common stock on March 29, 2016, until shareholder approval for such issuances was received, which approval was received on August 23, 2016. The convertible notes contained a beneficial conversion feature with a combined intrinsic value of $600,000 for the three notes, which is recognized as a discount and is being amortized through interest expense using the effective interest method over the term of the notes. On October 4, 2016, HFT, converted $464,800 of the principal and interest due on such convertible notes held by HFT into shares of our common stock at a conversion price of $1.50 per share, for an aggregate of 309,866 shares. Additionally on November 18, 2016, Mrs. Herman converted $155,110 of the principal and interest due on the convertible note which she held into shares of our common stock at a conversion price of $1.50 per share, for an aggregate of 103,400 shares. As of December 31, 2016, the Company had no remaining HFT convertible notes outstanding as all outstanding notes had been converted into shares of the Company’s common stock. Dreeben Note On March 28, 2016, we borrowed $250,000 from Alan Dreeben, one of the Sellers and one of our directors, pursuant to a short-term promissory note. The short-term promissory note has a principal balance of $275,000 (the $250,000 borrowed plus a $25,000 original issue discount). As additional consideration for Mr. Dreeben agreeing to make the loan, we agreed to issue Mr. Dreeben 15,000 shares of restricted common stock which were issued in September 2016. The Company recognized a $48,000 discount to the short-term promissory note which was based on the closing price of the Company’s common stock ($3.20 per share) on March 28, 2016 in addition to the original discount of $25,000, for a total discount of $73,000. On June 27, 2016, we entered into an amended and restated short-term promissory note, amending and restating the note originally entered into with Mr. Dreeben on March 28, 2016 ; evidencing an additional $100,000 borrowed on June 13, 2016, plus a $10,000 original issue discount on such loan amount and extending the maturity date of the note to August 31, 2016. On August 31, 2016, the Company paid Mr. Dreeben the full amount due on the short-term promissory note of $385,000. Debenture On April 6, 2016, we entered into a Securities Purchase Agreement with the Investor, pursuant to which we issued a redeemable convertible subordinated debenture, with a face value of $530,000, initially convertible into 163,077 shares of common stock at a conversion price equal to $3.25 per share and warrants to initially purchase 1,384,616 shares of common stock (subject to adjustment thereunder) at an exercise price equal to $3.25 per share (the “First Warrant”). The Investor purchased the debenture at a $30,000 original issue discount for the sum of $500,000 and agreed that it would exercise the First Warrant, upon satisfaction of certain conditions, for the sum of $4.5 million, which warrant was exercised in October 2016. The debenture matures in seven years and accrues interest at a rate of 6.0% per annum. Due to the recent decline in the price of our common stock and that a trigger event occurred on June 30, 2016 as a result of the delay in filing our Annual Report on Form 10-K for the year ended March 31, 2016, the premium rate on the debenture increased from 6% to 34% and the conversion discount became 85% of the lowest daily volume weighted average price during the measuring period (60 days prior to and 60 days after the last date that the Investor receives the last of the shares due), less $0.10 per share of common stock not to exceed 85% of the lowest sales price on the last day of such period less $0.10 per share. As the fair value of the warrants issued in connection with the debenture exceeds the $530,000 value of the debenture, we fully discounted the entire debenture and will amortize the discount over the term of the debenture. The discount is being amortized through interest expense using the effective interest method over the term of the debenture. As of December 31, 2016, the Company had a convertible subordinated debenture of $56,786 (net of the unamortized discount of $473,214) which was recognized as a long-term liability on the Company’s balance sheet as of December 31, 2016. The Company also recognized $135,000 in accrued interest as of December 31, 2016. Loan Agreement with RAD2 Effective on August 25, 2016, RAD2, which was one of the Sellers and which is owned and controlled by Richard N. Azar II, who was appointed as our Chairman on August 26, 2016, loaned us $1.5 million pursuant to a promissory note. The promissory note does not accrue interest for the first month it is outstanding and accrues interest at the rate of 5% per annum thereafter until paid in full. On October 13, 2016, the Company paid RAD2 the full amount due on the promissory note of $1.5 million and recognized $3,750 in accrued interest, which has yet to be paid. Loan Agreement with International Bank of Commerce (“IBC”) On August 25, 2016, we, as borrower, and Richard N. Azar II, who was appointed as our Chairman on August 26, 2016 and who also received the largest number of securities and cash in connection with the closing of the Acquisition (“Azar”), Donnie B. Seay, Richard E. Menchaca, RAD2, DBS Investments, Ltd. (“DBS”, controlled by Mr. Seay) and Saxum Energy, LLC (“Saxum”, which is controlled by Mr. Menchaca), as guarantors (collectively, the “Guarantors”, all of which were directly or indirectly Sellers), and IBC as Lender (“Lender”), entered into a Loan Agreement. Pursuant to the Loan Agreement, the Lender loaned us $40 million, evidenced by a Real Estate Lien Note in the amount of $40 million. We are required to make monthly payments under the note equal to the greater of (i) $425,000; and (ii) fifty percent (50%) of our monthly net income. The note accrues annual interest at 2% above the prime rate then in effect, subject to a minimum interest rate of 5.5% per annum. The note is due and payable on August 25, 2019. Payments under the note are subject to change as the interest rate changes in order to sufficiently amortize the note in 120 monthly installments. We have the right, from time to time and without penalty to prepay the note in whole or in part, subject to the terms thereof. The proceeds of the loan were used to repay and refinance approximately $30.6 million of indebtedness owed by certain of the Sellers, to the Lender (including an aggregate of $18.3 million owed by RAD2 and another entity controlled by Mr. Azar, $9.8 million owed by DBS, and $2.1 million owed by Mr. Menchaca), as well as to pay the $4.975 million due to the Sellers at closing. Another $3.36 million was used to fund a sinking fund required by the Lender, as discussed below, to pay principal on the note. The amount owed under the note is secured by a Security Interest in substantially all of our assets and properties, pursuant to three Security Agreements. Also, each of the Guarantors guaranteed the repayment of a portion of the Loan Agreement pursuant to a Limited Guaranty Agreement. Additionally, in connection with the parties’ entry into the Loan Agreement and to further secure amounts due thereunder, certain of the Guarantors pledged shares of common stock which they received at the closing to the Lender, with RAD2 pledging 3,120,606 shares of common stock; DBS pledging 935,934 shares of common stock; and Saxum pledging 673,392 shares of common stock. The Loan Agreement also provides that with respect to the properties located in Glasscock County, Texas, which we obtained ownership of at the closing of the Acquisition (collectively, the “West Texas Properties”), we have the right to sell the West Texas Properties after (i) the Lender approves the purchase and sale agreement in its sole discretion, (ii) the Lender receives as a prepayment of the loan, 50% of the sales proceeds of the West Texas Properties, but in no event less than $2,000,000, and (iii) the balance of the sales proceeds of the West Texas Properties are deposited in the bank account that we are required to maintain with the Lender, to be used to pay certain principal payments of the note as approved by Lender in its sole discretion. We agreed to pay the Lender a loan finance charge of $400,000 in connection with our entry into the Loan Agreement, with half due on the date we entered into the Loan Agreement and half due on or before the 180th day following the date of the Loan Agreement. As further consideration for agreeing to the terms of the Loan, we agreed to issue the Lender 390,290 shares of common stock. We recognized a $2.8 million note discount related to these transactions and other debt issuance costs and will amortize the discount and debt issuance costs over the term of the note. As of December 31, 2016, the balance of the loan due to IBC was $39.0 million, of which $3.0 million is recognized as short-term liability and $36.0 million (less unamortized debt issuance costs of approximately $2.4 million) is recognized as a long-term liability on the Company’s balance sheet as of December 31, 2016. The Company has also recognized approximately $30,000 in accrued interest as of December 31, 2016. |
STOCKHOLDERS' EQUITY
STOCKHOLDERS' EQUITY | 9 Months Ended |
Dec. 31, 2016 | |
Equity [Abstract] | |
STOCKHOLDERS' EQUITY | NOTE 7 – STOCKHOLDERS’ EQUITY Series A Convertible Preferred Stock On April 19, 2016, the holder of our Series A Convertible Preferred Stock, agreed to convert all 500 shares of our outstanding Series A Convertible Preferred Stock into 20,000 shares of our common stock (a conversion ratio of 40:1 as provided in the original designation of the Series A Convertible Preferred Stock adjusted for the Company’s 1:25 reverse stock split effective on July 25, 2015), which conversion was completed on April 25, 2016. We paid the holder $20,000 in connection with such conversion in order to comply with the terms of the Asset Purchase Agreement that required that no shares of Series A Convertible Preferred Stock be outstanding at the closing. As of December 31, 2016, we had no Series A Convertible Preferred Stock issued or outstanding. Series B Redeemable Convertible Preferred Stock On September 1, 2016, as consideration for the closing of the Acquisition, the Company issued an aggregate of 552,000 shares of Redeemable Convertible Preferred Stock, which had a total value of $13,800,000 based on the $25 per Series B Preferred Stock share par value. The preferred shares were issued to RAD2 (200,000 shares) and Segundo Resources, LLC (an affiliate of RAD2)(352,000 shares) on behalf of and for the benefit of RAD2. The Series B Preferred Stock has a liquidation preference of $25 per share. The Series B Preferred Stock is convertible, at the option of the holder at any time following the original issuance date, into common stock at a rate of approximately 7.14:1 (issuable into an aggregate of 3,942,857 shares of common stock if fully converted), at the option of the holder thereof, or automatically as to 25% of the Series B Preferred Stock shares if our common stock trades above $6.125 per share for at least 20 consecutive trading days, and trades with at least 75,000 shares of average volume per day during such period; an additional 50% of the Series B Preferred Stock shares if our common stock trades above $7.00 per share for at least 20 consecutive trading days, and trades with at least 75,000 shares of average volume per day during such period; and as to the remaining Series B Preferred Stock shares, if our common stock trades above $7.875 per share for at least 20 consecutive trading days, and trades with at least 75,000 shares of average volume per day during such period. Each outstanding share of Series B Preferred Stock will be entitled to one vote per share on all stockholder matters. The Series B Preferred Stock is redeemable at any time by the Company upon the payment by the Company of the face amount of the Series B Preferred Stock ($25 per share) plus any and all accrued and unpaid dividends thereon. The Company has the option, exercisable from time to time after the original issue date, to redeem all or any portion of the outstanding shares of Series B Preferred Stock by paying each applicable holder, an amount equal to the original issue price multiplied by the number of Series B Preferred shares held by each applicable holder plus the accrued dividends. The 552,000 shares of Series B Preferred Stock have the following features: ● a liquidation preference senior to all of the Company’s common stock; ● a dividend, payable quarterly, at an annual rate of six percent (6%) of the original issue price until such Series B Preferred Stock is no longer outstanding either due to conversion, redemption or otherwise; and ● voting rights on all matters, with each share having 1 vote. As the Series B Preferred Stock is convertible at any time following the original issuance date into common stock at a rate of approximately 7.14:1, the Company recognized a fair value measurement of $14,898,038 for the Series B Preferred Stock, which is based on the 552,000 preferred shares issued times the conversion rate of approximately 7.14, times the price of the Company’s common stock of $3.78 per share at the date of the closing of the Acquisition on August 25, 2016. As of December 31, 2016, the Company recognized a stock dividend on the Series B Preferred Stock consisting of 82,674 shares of our common stock, which was recognized as a charge to additional paid in-capital and stock dividends distributable but not issued of $102,516 based on the closing price of the Company’s common stock of $1.24 per share on December 30, 2016. The common stock dividends were subsequently issued to the preferred shareholders on January 9, 2017 (see “Note 12 - Subsequent Events”). Series C Redeemable Convertible Preferred Stock On April 6, 2016, we entered into a Stock Purchase Agreement with the Investor, pursuant to which we agreed, subject to certain conditions, to sell 527 shares of Series C redeemable convertible preferred stock (with a face value of $5.26 million) at a 5% original issue discount of $263,000, convertible into 1,618,462 shares of common stock at a conversion price of $3.25 per share, and a warrant to purchase 1,111,112 shares of common stock at an exercise price of $4.50 per share (the “Second Warrant”). On September 2, 2016, the Second Warrant and 53 shares of Series C Preferred Stock were issued for $526,450 ($500,000, net cash proceeds to Camber) after the Acquisition (as defined and described in “Note 2 – Liquidity and Going Concern Considerations”) closed. The prorated share of the $263,000 discount ($26,450) was recorded to interest expense. On November 17, 2016, the remaining 474 shares of Series C Preferred Stock were issued for $4,736,550 ($4,500,000, net cash proceeds to Camber) and the Company paid placement agent and legal fees of $514,000 for services rendered in connection with the issuance. The Company also recognized $236,550 of the remaining 5% original issue discount, which was recorded to interest expense in the current period. The holder of the Series C Preferred Stock is entitled to cumulative dividends through maturity, which initially totaled 6% per annum, and are adjustable to up to 35% per annum, based on certain triggering events and the trading price of our common stock, and which totaled 30% per annum as of December 31, 2016, and currently total 34% per annum, payable upon redemption, conversion, or maturity, and when, as and if declared by our Board of Directors in its discretion. The Series C Preferred Stock ranks senior to the common stock and pari passu with respect to our Series B Redeemable Convertible Preferred Stock. The Series C Preferred Stock may be converted into shares of common stock at any time at the option of the holder, or at our option if certain equity conditions (as defined in the Certificate of Designation) are met. Upon conversion, we will pay the holder of the Series C Preferred Stock being converted an amount, in cash or stock at our sole discretion, equal to the dividends that such shares would have otherwise earned if they had been held through the maturity date (7 years), and issue to the holder such number of shares of common stock equal to $10,000 per share of Series C Preferred Stock (the “Face Value”) multiplied by the number of such shares of Series C Preferred Stock divided by the conversion rate ($3.25 per share). The conversion premium under the Series C Preferred Stock is payable and the dividend rate under the Series C Preferred Stock is adjustable on the same terms and conditions as accrued interest is payable and adjustable under the Debenture. The Series C Preferred Stock has a maturity date that is seven years after the date of issuance and, if the Series C Preferred Stock has not been wholly converted into shares of common stock prior to such date, we may redeem the Series C Preferred Stock on such date by repaying to the holder in cash 100% of the Face Value plus an amount equal to any accrued but unpaid dividends thereon. 100% of the Face Value, plus an amount equal to any accrued but unpaid dividends thereon, automatically becomes payable in the event of a liquidation, dissolution or winding up by us. On December 22, 2016, the Investor converted 32 shares of the Series C Preferred stock (equal to a face value of $320,000), and was due 98,462 shares of common stock and an additional 969,138 shares of common stock in dividend premium shares. Due to the recent decline in the price of our common stock and the trigger event that occurred on June 30, 2016 as a result of the delay in filing our Annual Report on Form 10-K for the year ended March 31, 2016, the dividend premium rate increased from 6% to 30% and the conversion discount became 85% of the lowest daily volume weighted average price during the measuring period, less $0.10 per share of common stock not to exceed 85% of the lowest sales prices on the last day of such period less $0.10 per share. A total of 1,067,600 shares were issued to the Investor on December 23, 2016. As of December 31, 2016, the Company accrued common stock dividends on the Series C Preferred Stock based on the then 30% premium dividend rate described above. The Company recognized a charge to additional paid-in capital and stock dividends distributable but not issued of $750,000 related to the stock dividend declared but not issued. On January 5, 2017, the Investor converted 21 shares of the Series C Preferred stock (equal to a face value of $210,000), and was due 64,146 shares of common stock and an additional 657,196 shares of common stock in dividend premium shares. On January 23, 2017, the Investor converted 21 shares of the Series C Preferred stock (equal to a face value of $210,000), and was due 64,146 shares of common stock and an additional 780,694 shares of common stock in dividend premium shares (see “Note 12 - Subsequent Events”). Common Stock The following summarizes the Company’s common stock activity during the nine-month period ended December 31, 2016: Common Shares Issued and Outstanding Amount (a) Per Share Shares Balance at March 31, 2016 1,605,224 Conversion of Debt $ 1,452,029 $ 1.50 968,018 Preferred Stock Series A Conversion 773,900 38.70 20,000 Preferred Stock Series C Conversion 320,000 0.30 1,067,600 Warrant Conversion 4,072,500 0.81 5,000,000 Acquisition Shares 49,176,530 3.78 13,009,664 Lender Shares 1,455,782 3.73 390,290 Dreeben Note Shares 48,000 3.20 15,000 Share-Based Compensation 72,035 3.25 22,131 Balance at December 31, 2016 22,097,927 (a) Net proceeds or fair value on grant date, as applicable. See “Note 9 – Share-Based Compensation”, for information on common stock activity related to Share-Based Compensation, including shares granted to the board of directors, officers, employees and consultants. Warrants During the nine months ended December 31, 2016, warrants to purchase 1,384,616 shares of common stock were granted in connection with our sale of the debenture noted in “Note 6 – Note Payables and Debenture” and warrants to purchase 1,111,112 shares of common stock at an exercise price of $4.50 per share were granted in connection with our sale of 53 shares of Series C Preferred Stock noted above. We also granted warrants to purchase 124,285 shares of common stock in connection with the HFT Convertible Promissory Notes (see “Note 6 – Note Payables and Debenture”). No warrants were cancelled during the nine months ended December 31, 2016, other than warrants to purchase 100,420 shares of common stock at an exercise price of $71.50 per share expired unexercised on July 4, 2016. On October 7, 2016, the Investor exercised the First Warrant in full and was due 1,384,616 shares of common stock upon exercise thereof and an additional 2,252,735 shares of common stock in consideration for the conversion premium due thereon. A total of 810,000 shares were issued to the Investor on October 7, 2016, with the remaining shares being held in abeyance until such time as it would not result in the Investor exceeding its beneficial ownership limitation (4.99% of the Company’s outstanding common stock). The Company received gross proceeds of $4,500,000 from the exercise of the First Warrant and paid placement agent fees of $427,500 for services rendered in connection with the First Warrant. Pursuant to the terms of the First Warrant, the number of shares due in consideration for the conversion premium increases as the annual rate of return under the First Warrant increases, including by 10% upon the occurrence of certain triggering events (which had occurred by the October 7, 2016 date of exercise), to 17% per annum upon the exercise of the First Warrant. Additionally, as the conversion rate for the conversion premium is currently 85% of the lowest daily volume weighted average price during the measuring period, less $0.10 per share of common stock not to exceed 85% of the lowest sales prices on the last day of such period less $0.10 per share, the number of shares issuable in connection with the conversion premium increases as the trading price of our common stock decreases, and the trading price of our common stock has decreased since the date the First Warrant was exercised, triggering a further reduction in the conversion price of the conversion premium and an increase in the number of shares due the Investor in connection with the conversion of the amount owed in connection with the conversion premium. In total, an aggregate of 7,476,680 shares of common stock were due as of December 31, 2016 (and an aggregate of approximately 7.7 million shares of common stock were due as of the date of this filing) in connection with the conversion premium associated with the First Warrant, of which an aggregate of 3,615,384 shares had been issued to the Investor as of December 31, 2016 (and as of the date of this filing), in connection with various requests from the Investor for the issuance of additional shares of common stock out of the total shares held in abeyance for such aggregate exercise, with the remaining shares being held in abeyance until such time as it would not result in the Investor exceeding its beneficial ownership limitation (4.99% of the Company’s outstanding common stock) and until such time as a sufficient number of shares have been registered to allow for the issuance of registered shares to the Investor. Additionally, due to the above, the total number of shares issued or held in abeyance for issuance for the exercise and payment of conversion premium under the First Warrant may further increase during the measuring period. The measuring period continues until the date ending 60 days after we deliver to the Investor the last of the total shares due under the First Warrant. Additionally, warrants to purchase 66,668 shares of common stock issued in connection with an equity raise completed in April 2014, contained a weighted average anti-dilutive provision in which the exercise price of the warrants are adjusted downward based on any subsequent issuance or deemed issuance of common stock or convertible securities by the Company for consideration less than the then exercise price of such warrants. As a result of the anti-dilution rights, the exercise price of the warrants was adjusted to $3.59 per share, in connection with an automatic adjustment to the exercise price due to the Acquisition. As of December 31, 2016, the fair value of the derivative liability associated with the 66,668 warrants was $62,732 compared to $160,040 at September 30, 2016. Therefore, the $97,308 change in the derivative liability fair value was recorded as other income on the consolidated statement of operations. The following is a summary of the Company’s outstanding warrants at December 31, 2016: Warrants Exercise Expiration Intrinsic Value at Outstanding Price ($) Date December 31, 2016 41,300 (1) 57.50 October 18, 2017 $ — 11,000 (2) 37.50 April 4, 2018 — 2,000 (3) 37.50 May 31, 2018 — 11,195 (4) 0.01 August 13, 2018 13,770 66,668 (5) 3.59 April 21, 2019 — 124,285 (6) 1.50 April 21, 2021 — 1,111,112 (7) 4.50 March 31, 2017 — 1,367,560 $ 13,770 (1) Warrants issued in connection with the sale of units in the Company’s unit offering in April 2012. The warrants became exercisable on October 18, 2012, and will remain exercisable thereafter until October 18, 2017. (2) Warrants issued in connection with the issuance of certain notes in April 2013, of which the outstanding principal and interest was paid in full on August 16, 2013. The warrants were exercisable on the grant date (April 4, 2013) and remain exercisable until April 4, 2018. (3) Warrants issued in connection with the issuance of certain notes in May 2013, of which the outstanding principal and interest was paid in full on August 16, 2013. The warrants were exercisable on the grant date (May 31, 2013) and remain exercisable until May 31, 2018. (4) Warrants issued in connection with the Rogers Loan. The warrants were exercisable on the grant date (August 13, 2013) and remain exercisable until August 13, 2018. The exercise price was lowered to $0.01 per share on August 12, 2015. (5) Warrants issued in connection with the sale of units in the Company’s unit offering in April 2014. The Warrants became exercisable on April 21, 2014 and will remain exercisable thereafter until April 21, 2019. (6) Warrants issued in connection with the HFT Convertible Promissory Notes. The warrants were exercisable on the grant date (April 26, 2016) and remain exercisable until April 26, 2021. (7) Warrants issued in connection with the sale of Series C Preferred Stock. The warrants were exercisable on the grant date (September 2, 2016) and remain exercisable until March 31, 2017. |
INCOME TAXES
INCOME TAXES | 9 Months Ended |
Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | NOTE 8 – INCOME TAXES The Company has estimated that its effective tax rate for U.S. purposes will be zero for the 2017 fiscal year and consequently, recorded no provision or benefit for income taxes for the nine months ended December 31, 2016. |
SHARE-BASED COMPENSATION
SHARE-BASED COMPENSATION | 9 Months Ended |
Dec. 31, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
SHARE-BASED COMPENSATION | NOTE 9 – SHARE-BASED COMPENSATION Camber measures the cost of employee services received in exchange for an award of equity instruments based on the grant-date fair value of the award over the vesting period. Common Stock Camber issued 22,131 shares of its common stock with an aggregate grant date fair value of $72,035 during the nine-month period ended December 31, 2016, which were valued based on the trading value of Camber’s common stock on the date of grant. Also, on December 31, 2016, the Company agreed to award an additional 19,010 shares of its common stock with an aggregate grant fair value of $23,572, which were valued based on the trading value of Camber’s common stock on the date of grant. Those common stock awards had yet to be physically issued as of December 31, 2016, and therefore, were recognized as accrued common stock payable on the balance sheet. The shares were awarded according to the employment agreement with an officer and as additional compensation for other officers and managerial personnel. Stock Options As of December 31, 2016 and 2015, the Company had 19,920 and 22,920 stock options outstanding with a weighted average exercise price of $35.38 and $33.96, respectively. Of the Company’s outstanding options, no options were exercised or forfeited while 3,000 options expired during the nine months ended December 31, 2016. Additionally, no stock options were granted during the nine months ended December 31, 2016. Compensation expense related to stock options during the nine-month period ended December 31, 2016 was $14,449. Options outstanding and exercisable at December 31, 2016 and 2015 had no intrinsic value, respectively. The intrinsic value is based upon the difference between the market price of Camber’s common stock on the date of exercise and the grant price of the stock options. The following tabulation summarizes the remaining terms of the options outstanding: Exercise Remaining Options Options Price ($) Life (Yrs.) Outstanding Exercisable 40.75 0.8 4,000 4,000 43.50 0.8 6,000 6,000 39.50 0.8 2,000 2,000 40.25 1.0 2,000 2,000 5.50 1.2 4,000 4,000 51.75 3.8 1,920 1,920 Total 19,920 19,920 As of December 31, 2016, total unrecognized stock-based compensation expense related to all non-vested stock options was $16,055, which is being recognized over a remaining weighted average period of approximately 0.7 years. In prior periods, the shareholders of the Company approved the Company’s 2014 (as amended), 2012 and 2010 Stock Incentive Plans (the “Plans”). The Plans are intended to secure for the Company the benefits arising from ownership of the Company’s common stock by the employees, officers, directors and consultants of the Company, all of whom are and will be responsible for the Company’s future growth. The Plans provide an opportunity for any employee, officer, director or consultant of the Company to receive incentive stock options (to eligible employees only), nonqualified stock options, restricted stock, stock awards and shares in performance of services. There are 56,987 shares available for issuance under the Plans as of December 31, 2016. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 9 Months Ended |
Dec. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | NOTE 10 – COMMITMENTS AND CONTINGENCIES Office Lease. Legal Proceedings |
SUPPLEMENTAL CASH FLOW INFORMAT
SUPPLEMENTAL CASH FLOW INFORMATION | 9 Months Ended |
Dec. 31, 2016 | |
Supplemental Cash Flow Elements [Abstract] | |
SUPPLEMENTAL CASH FLOW INFORMATION | NOTE 11 – SUPPLEMENTAL CASH FLOW INFORMATION Net cash paid for interest and income taxes was as follows for the periods indicated: Nine Months Ended December 31, 2016 2015 Interest $ 755,903 $ 74,152 Income taxes — — Non-cash investing and financing activities for the periods indicated included the following: Nine Months Ended December 31, 2016 2015 Reduction in Accounts Payable for Payments Made on Previously Accrued Capital Expenditures $ 242,957 $ 76,899 Forgiveness of Debt in Transaction Settlement $ — $ 600,000 Common Stock Issued in Transaction Settlement $ — $ 234,777 Discount from Beneficial Conversion Feature on Convertible Notes $ — $ 227,910 Return and Cancellation of Common Stock Issued in Victory Settlement $ — $ (110,616 ) Increase in Asset Retirement Obligations $ 755,862 $ — Issuance of Common Stock for Segundo Acquisition $ 49,176,530 $ — Issuance of Series B Preferred Stock for Segundo Acquisition $ 14,898,038 $ — Notes Payable Assumed for Segundo Acquisition $ 30,595,256 $ — Accounts Receivable Assumed for Segundo Acquisition $ 635,482 $ — Debt discounts on Notes Payable, Long-Term Notes Payable and Convertible Notes Payable $ 3,376,900 $ — Issuance of Restricted Common Stock for Dreeben Loan $ 48,000 $ — Conversion of Convertible Notes in Common Stock $ 1,445,669 $ — Conversion of Preferred Stock to Common Stock $ 1,093,900 $ — Stock Dividends Distributable but not Issued $ 852,516 $ — |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 9 Months Ended |
Dec. 31, 2016 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | NOTE 12 – SUBSEQUENT EVENTS On January 3, 2017, we filed an amendment to our Articles of Incorporation with the Secretary of State of Nevada to change our name to “Camber Energy, Inc.” The name change was previously approved by our majority shareholders via a written consent to action without a meeting on December 16, 2016. On January 3, 2017, Camber entered into a Lease Acquisition and Participation Agreement with a privately-held, Houston, Texas-based oil and gas holding company (“Partner”) to acquire a leasehold position in the Permian Basin in Texas, where we agreed to acquire an initial leasehold comprised of 16,300 gross, 3,600 net, mineral acres in consideration for $1.43 million, and have agreed to form an area of mutual interest on the Central Basin Platform of the Permian Basin covering approximately seventy thousand (70,000) acres. The Company will operate the properties and own a 90% working interest and the Partner will hold a 10% working interest in acquired leases. The Company intends to target development in the oil producing San Andres formation. The transaction closed on January 31, 2017. On January 5, 2017, the Investor converted 21 shares of Series C Preferred Stock (equal to a face value of $210,000), and was due 64,616 shares of common stock and an additional 657,196 shares of common stock in dividend premium shares for a total of 721,821 shares of common stock. Due to the recent decline in the price of our common stock and the trigger event that occurred on June 30, 2016 as a result of the delay in filing our Annual Report on Form 10-K for the year ended March 31, 2016, the dividend premium rate of our Series C Preferred Stock increased from 6% to 31% and the conversion discount became 85% of the lowest daily volume weighted average price during the measuring period, less $0.10 per share of common stock not to exceed 85% of the lowest sales prices on the last day of such period less $0.10 per share. The measuring period continues until the date ending 60 days after the shares described in the initial conversion notice are received into the Investors brokerage account. A total of 1,067,600 shares were issued to the Investor on December 23, 2016. On January 9, 2017, the Company paid the required dividend on the Series B Preferred Stock by way of the issuance of 82,674 shares of our common stock to the preferred shareholders at a fair market value of $102,516, based on the closing price of the Company’s common stock ($1.24 per share) on December 30, 2016. On January 23, 2017, the Investor converted an additional 21 shares of the Series C Preferred stock (equal to a face value of $210,000), and was due 64,616 shares of common stock and an additional 780,694 shares of common stock in dividend premium shares for a total of 845,310 shares. Due to the continued decline in the price of our common stock the dividend premium rate increased further to 34%. On January 24, 2017, we entered into a Third Amendment to Asset Purchase Agreement (the “Third Amendment”) amending that certain Asset Purchase Agreement dated December 31, 2015. Pursuant to the Third Amendment, the parties agreed to amend a post-closing covenant under the original Asset Purchase Agreement to remove the requirement that one of the directors serving on the Company’s board of directors resign within six months of the closing of the Acquisition. On January 31, 2017, we entered into an amendment to the Rogers Loan, pursuant to which the parties agreed to extend the maturity date from January 31, 2017 to April 30, 2017. We also agreed to pay $9,000 to Ms. Rogers and $9,000 to Robertson Global Credit, LLC, the servicer of the Rogers Loan, in connection with our entry into the amendment. On January 31, 2017, we borrowed $1,000,000 from Alan Dreeben, one of the Company’s directors, pursuant to a short-term promissory note. The short-term promissory note has a principal balance of $1,050,000 (the $1,000,000 principal amount borrowed plus a $50,000 original issue discount), accrues interest at 6% per annum and has a maturity date of January 31, 2018 and contains standard and customary events of default. As additional consideration for Mr. Dreeben agreeing to make the loan, we agreed to issue Mr. Dreeben 40,000 restricted shares of common stock (which had not been issued as of the date of this report or included in the number of issued and outstanding shares disclosed herein). |
PROPERTY AND EQUIPMENT (Tables)
PROPERTY AND EQUIPMENT (Tables) | 9 Months Ended |
Dec. 31, 2016 | |
Property and Equipment | |
Schedule of oil and natural gas properties | All of Camber’s oil and gas properties are located in the United States. Below are the components of Camber’s oil and gas properties recorded at: December 31, March 31, 2016 2016 Proved leasehold costs $ 37,356,943 $ 10,266,551 Costs of wells and development 61,725,817 37,534,624 Capitalized asset retirement costs 1,473,199 717,337 Total oil and gas properties 100,555,959 48,518,512 Accumulated depreciation and depletion (36,204,667 ) (34,416,407 ) Net capitalized costs $ 64,351,292 $ 14,102,105 |
Schedule of purchase price net assets acquired in connection with acquisition | The following tables summarize the purchase price and allocation of the purchase price to the net assets acquired in connection with the Acquisition: Consideration Given Purchase Price on August 25, 2016: Fair value of common stock issued $ 49,176,530 Fair value of Series B Preferred Stock issued 14,898,038 Assumption of debt 30,595,256 Cash at Closing 4,975,000 Total purchase price $ 99,644,824 Net Assets Acquired Accounts receivable $ 635,482 Total current assets acquired 635,482 Oil and gas properties 50,774,684 Total assets acquired 51,410,166 Asset retirement obligations (755,862 ) Total liabilities acquired (755,862 ) Net assets acquired 50,654,304 Impairment of oil and gas properties 48,990,520 Total Purchase Price $ 99,644,824 The proceeds from the $40 million loan from IBC were as follows: Use of Proceeds Assumption of debt $ 30,595,256 Cash funding (due at closing) 4,975,000 Loan Commitment fee (due at closing) 200,000 Lien Payoff (due at closing) 72,657 Restricted cash (received at closing) 3,360,000 Cash (received at closing) 797,087 Debt payable after closing $ 40,000,000 |
ASSET RETIREMENT OBLIGATIONS (T
ASSET RETIREMENT OBLIGATIONS (Tables) | 9 Months Ended |
Dec. 31, 2016 | |
Asset Retirement Obligation Disclosure [Abstract] | |
Schedule of reconciliation of long-term legal obligations | The following table presents the reconciliation of the beginning and ending aggregate carrying amounts of long-term legal obligations associated with the retirement of oil and gas property and equipment for the nine-month period ended December 31, 2016 and 2015, respectively. Camber does not have any short-term asset retirement obligations as of December 31, 2016 and 2015, respectively. 2016 2015 Carrying amount at beginning of period - March 31, 2016 $ 1,179,170 $ 1,051,694 Acquisition of oil and gas properties 755,862 — Accretion 70,714 95,484 Carrying amount at end of period – December 31, 2016 $ 2,005,746 $ 1,147,148 |
NOTES PAYABLE AND DEBENTURE (Ta
NOTES PAYABLE AND DEBENTURE (Tables) | 9 Months Ended |
Dec. 31, 2016 | |
Debt Disclosure [Abstract] | |
Schedule of notes payable and debenture | The Company’s notes payable and debenture consisted of the following: December 31, March 31, 2016 2016 Note Payable - Rogers $ 6,959,025 $ 7,153,734 Note Payable - Dreeben — 275,000 Convertible Notes Payable - Silver Star — 800,000 Convertible Notes Payable - HFT — 450,000 Debenture 530,000 — Note Payable - IBC 39,038,929 — 46,527,954 8,678,734 Unamortized debt discount (2,950,459 ) (583,183 ) Total Notes Payable and Debenture 43,577,495 8,095,551 Less current portion of long-term debt (9,958,110 ) (8,095,551 ) Long-term portion $ 33,619,385 $ — |
STOCKHOLDERS' EQUITY (Tables)
STOCKHOLDERS' EQUITY (Tables) | 9 Months Ended |
Dec. 31, 2016 | |
Equity [Abstract] | |
Schedule of common stock activity | The following summarizes the Company’s common stock activity during the nine-month period ended December 31, 2016: Common Shares Issued and Outstanding Amount (a) Per Share Shares Balance at March 31, 2016 1,605,224 Conversion of Debt $ 1,452,029 $ 1.50 968,018 Preferred Stock Series A Conversion 773,900 38.70 20,000 Preferred Stock Series C Conversion 320,000 0.30 1,067,600 Warrant Conversion 4,072,500 0.81 5,000,000 Acquisition Shares 49,176,530 3.78 13,009,664 Lender Shares 1,455,782 3.73 390,290 Dreeben Note Shares 48,000 3.20 15,000 Share-Based Compensation 72,035 3.25 22,131 Balance at December 31, 2016 22,097,927 |
Schedule of outstanding warrants | The following is a summary of the Company’s outstanding warrants at December 31, 2016: Warrants Exercise Expiration Intrinsic Value at Outstanding Price ($) Date December 31, 2016 41,300 (1) 57.50 October 18, 2017 $ — 11,000 (2) 37.50 April 4, 2018 — 2,000 (3) 37.50 May 31, 2018 — 11,195 (4) 0.01 August 13, 2018 13,770 66,668 (5) 3.59 April 21, 2019 — 124,285 (6) 1.50 April 21, 2021 — 1,111,112 (7) 4.50 March 31, 2017 — 1,367,560 $ 13,770 (1) Warrants issued in connection with the sale of units in the Company’s unit offering in April 2012. The warrants became exercisable on October 18, 2012, and will remain exercisable thereafter until October 18, 2017. (2) Warrants issued in connection with the issuance of certain notes in April 2013, of which the outstanding principal and interest was paid in full on August 16, 2013. The warrants were exercisable on the grant date (April 4, 2013) and remain exercisable until April 4, 2018. (3) Warrants issued in connection with the issuance of certain notes in May 2013, of which the outstanding principal and interest was paid in full on August 16, 2013. The warrants were exercisable on the grant date (May 31, 2013) and remain exercisable until May 31, 2018. (4) Warrants issued in connection with the Rogers Loan. The warrants were exercisable on the grant date (August 13, 2013) and remain exercisable until August 13, 2018. The exercise price was lowered to $0.01 per share on August 12, 2015. (5) Warrants issued in connection with the sale of units in the Company’s unit offering in April 2014. The Warrants became exercisable on April 21, 2014 and will remain exercisable thereafter until April 21, 2019. (6) Warrants issued in connection with the HFT Convertible Promissory Notes. The warrants were exercisable on the grant date (April 26, 2016) and remain exercisable until April 26, 2021. (7) Warrants issued in connection with the sale of Series C Preferred Stock. The warrants were exercisable on the grant date (September 2, 2016) and remain exercisable until March 31, 2017. |
SHARE-BASED COMPENSATION (Table
SHARE-BASED COMPENSATION (Tables) | 9 Months Ended |
Dec. 31, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of options outstanding | The following tabulation summarizes the remaining terms of the options outstanding: Exercise Remaining Options Options Price ($) Life (Yrs.) Outstanding Exercisable 40.75 0.8 4,000 4,000 43.50 0.8 6,000 6,000 39.50 0.8 2,000 2,000 40.25 1.0 2,000 2,000 5.50 1.2 4,000 4,000 51.75 3.8 1,920 1,920 Total 19,920 19,920 |
SUPPLEMENTAL CASH FLOW INFORM23
SUPPLEMENTAL CASH FLOW INFORMATION (Tables) | 9 Months Ended |
Dec. 31, 2016 | |
Supplemental Cash Flow Elements [Abstract] | |
Schedule of supplemental cash flow information | Net cash paid for interest and income taxes was as follows for the periods indicated: Nine Months Ended December 31, 2016 2015 Interest $ 755,903 $ 74,152 Income taxes — — Non-cash investing and financing activities for the periods indicated included the following: Nine Months Ended December 31, 2016 2015 Reduction in Accounts Payable for Payments Made on Previously Accrued Capital Expenditures $ 242,957 $ 76,899 Forgiveness of Debt in Transaction Settlement $ — $ 600,000 Common Stock Issued in Transaction Settlement $ — $ 234,777 Discount from Beneficial Conversion Feature on Convertible Notes $ — $ 227,910 Return and Cancellation of Common Stock Issued in Victory Settlement $ — $ (110,616 ) Increase in Asset Retirement Obligations $ 755,862 $ — Issuance of Common Stock for Segundo Acquisition $ 49,176,530 $ — Issuance of Series B Preferred Stock for Segundo Acquisition $ 14,898,038 $ — Notes Payable Assumed for Segundo Acquisition $ 30,595,256 $ — Accounts Receivable Assumed for Segundo Acquisition $ 635,482 $ — Debt discounts on Notes Payable, Long-Term Notes Payable and Convertible Notes Payable $ 3,376,900 $ — Issuance of Restricted Common Stock for Dreeben Loan $ 48,000 $ — Conversion of Convertible Notes in Common Stock $ 1,445,669 $ — Conversion of Preferred Stock to Common Stock $ 1,093,900 $ — Stock Dividends to be Issued $ 852,516 $ — |
GENERAL (Details Narrative)
GENERAL (Details Narrative) | Jul. 15, 2015 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Description of reverse stock split | 1-for-25 reverse stock split of all of the outstanding shares of the Companys common stock which was effective on July 15, 2015. |
Reverse stock split ratio | 0.04 |
LIQUIDITY AND GOING CONCERN C25
LIQUIDITY AND GOING CONCERN CONSIDERATIONS (Details Narrative) - USD ($) | Jan. 31, 2017 | Nov. 17, 2016 | Oct. 07, 2016 | Sep. 02, 2016 | Aug. 26, 2016 | Aug. 25, 2016 | Apr. 06, 2016 | Dec. 30, 2015 | Oct. 31, 2016 | Dec. 31, 2016 | Dec. 31, 2015 | Feb. 10, 2017 | Dec. 30, 2016 | Aug. 31, 2016 | Mar. 31, 2016 | Aug. 13, 2013 |
Current liabilities | $ 13,440,999 | $ 11,085,304 | ||||||||||||||
Current assets | 6,803,289 | 542,987 | ||||||||||||||
Working capital deficit | (6,600,000) | (10,500,000) | ||||||||||||||
Change in working capital deficit | 3,900,000 | |||||||||||||||
Increase decrease in cash and restricted cash | 6,200,000 | |||||||||||||||
Cash paid for acquisition | 4,975,000 | |||||||||||||||
Proceeds from convertible notes | 150,000 | $ 800,000 | ||||||||||||||
Principal balance of short-term promissory note | $ 46,527,954 | 8,678,734 | ||||||||||||||
First Warrant [Member] | ||||||||||||||||
Number of common stock issued upon warrant exercise | 7,700,000 | |||||||||||||||
First Warrant [Member] | Subsequent Event [Member] | ||||||||||||||||
Number of common stock issued upon warrant exercise | 7,700,000 | |||||||||||||||
Letter Loan - Ms. Rogers [Member] | ||||||||||||||||
Notes payable | $ 6,959,025 | $ 7,500,000 | ||||||||||||||
Maturity date | Apr. 30, 2017 | |||||||||||||||
Principal balance of short-term promissory note | $ 6,959,025 | $ 7,153,734 | ||||||||||||||
Seller 2 [Member] | ||||||||||||||||
Repayment of debt | $ 100,000 | |||||||||||||||
Advances | $ 100,000 | |||||||||||||||
Institutional Investors [Member] | First Warrant [Member] | ||||||||||||||||
Shares of common stock called by warrants | 3,615,384 | |||||||||||||||
Number of common stock issued upon warrant exercise | 1,384,616 | |||||||||||||||
Number of additional common stock issued upon warrant exercise | 2,252,735 | |||||||||||||||
Proceeds from warrant exercises | $ 4,500,000 | |||||||||||||||
Number of shares issued | 810,000 | |||||||||||||||
Placement agent fees | $ 427,500 | |||||||||||||||
Institutional Investors [Member] | First Warrant [Member] | Subsequent Event [Member] | ||||||||||||||||
Shares of common stock called by warrants | 3,615,384 | |||||||||||||||
Institutional Investors [Member] | Redeemable Convertible Subordinated Debenture [Member] | First Warrant [Member] | ||||||||||||||||
Warrant exercise price (in dollars per share) | $ 3.25 | |||||||||||||||
Value of warrant | $ 4,500,000 | |||||||||||||||
Shares of common stock called by warrants | 1,384,616 | |||||||||||||||
RAD2 Minerals [Member] | ||||||||||||||||
Repayment of debt | $ 350,000 | |||||||||||||||
Advances | 350,000 | |||||||||||||||
RAD2 Minerals [Member] | 5% Promissory Note [Member] | ||||||||||||||||
Repayment of debt | 1,500,000 | |||||||||||||||
RAD2 Minerals [Member] | 5% Promissory Note [Member] | ||||||||||||||||
Notes payable | $ 1,500,000 | |||||||||||||||
Interest rate | 5.00% | |||||||||||||||
Percentage interest of short-term promissory note | 5.00% | |||||||||||||||
Seller 1 [Member] | ||||||||||||||||
Repayment of debt | $ 100,000 | |||||||||||||||
Advances | $ 100,000 | |||||||||||||||
Mr. Alan Dreeben [Member] | 6% Promissory Note [Member] | Subsequent Event [Member] | ||||||||||||||||
Interest rate | 6.00% | |||||||||||||||
Debt instrument face amount | $ 1,000,000 | |||||||||||||||
Principal balance of short-term promissory note | 1,050,000 | |||||||||||||||
Original issue discount | $ 50,000 | |||||||||||||||
Percentage interest of short-term promissory note | 6.00% | |||||||||||||||
Mr. Alan Dreeben [Member] | Restricted Stock [Member] | Subsequent Event [Member] | ||||||||||||||||
Shares of common stock issued for debt | 40,000 | |||||||||||||||
Asset Purchase Agreement [Member] | ||||||||||||||||
Offsetting of additional borrowings and payables | $ 2,300,000 | |||||||||||||||
Asset Purchase Agreement [Member] | Seller 2 [Member] | ||||||||||||||||
Agreed assets value | $ 80,697,710 | |||||||||||||||
Agreed assets value deficiency | 1,030,941 | |||||||||||||||
Value of assets acquired in clearing of deficiency | $ 1,000,000 | |||||||||||||||
Asset Purchase Agreement [Member] | 23 Different Entities & Individuals [Member] | Mid-Continent Region [Member] | ||||||||||||||||
Cash paid for acquisition | $ 4,975,000 | |||||||||||||||
Asset Purchase Agreement [Member] | 23 Different Entities & Individuals [Member] | Mid-Continent Region [Member] | Common Stock [Member] | ||||||||||||||||
Number of shares issued in acquisition | 13,009,664 | 13,009,664 | ||||||||||||||
Asset Purchase Agreement [Member] | 23 Different Entities & Individuals [Member] | Mid-Continent Region [Member] | Preferred Stock [Member] | ||||||||||||||||
Number of shares issued in acquisition | 552,000 | |||||||||||||||
Purchase Agreement [Member] | 23 Different Entities & Individuals [Member] | Mid-Continent Region [Member] | ||||||||||||||||
Commercial bank debt assumed in acquisition | $ 30,600,000 | |||||||||||||||
Repayment of debt | $ 30,600,000 | |||||||||||||||
Cash paid for acquisition | 4,975,000 | |||||||||||||||
Loan Agreement [Member] | International Bank of Commerce [Member] | ||||||||||||||||
Notes payable | $ 40,000,000 | |||||||||||||||
Loan Agreement [Member] | International Bank of Commerce [Member] | 5% Promissory Note [Member] | ||||||||||||||||
Maturity date | Aug. 25, 2019 | |||||||||||||||
Interest rate | 5.50% | |||||||||||||||
Debt instrument face amount | $ 40,000,000 | |||||||||||||||
Original issue discount | $ 2,800,000 | |||||||||||||||
Percentage interest of short-term promissory note | 5.50% | |||||||||||||||
Shares of common stock issued for debt | 390,290 | |||||||||||||||
Securities Purchase Agreement [Member] | Institutional Investors [Member] | 6% Series C Redeemable Convertible Preferred Stock [Member] | ||||||||||||||||
Shares of common stock issued on conversion | 1,618,462 | |||||||||||||||
Stock conversion price (in dollars per share) | $ 3.25 | |||||||||||||||
Original issue discount | 5.00% | |||||||||||||||
Proceeds from convertible notes | $ 4,500,000 | $ 500,000 | ||||||||||||||
Number of shares issued | 474 | 53 | 527 | |||||||||||||
Securities Purchase Agreement [Member] | Institutional Investors [Member] | Second Warrant [Member] | 6% Series C Redeemable Convertible Preferred Stock [Member] | ||||||||||||||||
Warrant exercise price (in dollars per share) | $ 4.50 | |||||||||||||||
Shares of common stock called by warrants | 1,111,112 | |||||||||||||||
Securities Purchase Agreement [Member] | Institutional Investors [Member] | Redeemable Convertible Subordinated Debenture [Member] | ||||||||||||||||
Notes payable | $ 530,000 | |||||||||||||||
Interest rate | 6.00% | |||||||||||||||
Shares of common stock issued on conversion | 163,077 | |||||||||||||||
Stock conversion price (in dollars per share) | $ 3.25 | |||||||||||||||
Original issue discount | 5.00% | |||||||||||||||
Proceeds from issuance of debt | $ 500,000 | |||||||||||||||
Percentage interest of short-term promissory note | 6.00% |
PROPERTY AND EQUIPMENT (Details
PROPERTY AND EQUIPMENT (Details Narrative) | Aug. 25, 2016USD ($)shares | Dec. 30, 2015USD ($)shares | Aug. 31, 2016USD ($)a | Dec. 31, 2016$ / Boe | Dec. 31, 2015$ / Boe | Dec. 31, 2016USD ($)$ / Boe | Dec. 31, 2015$ / Boe |
Amortization expense, per equivalent physical unit of production, per barrel of oil | $ / Boe | 13.01 | 31.78 | 13.81 | 31.85 | |||
Cash paid for acquisition | $ 4,975,000 | ||||||
Joint Operating Agreement ( Lonestar Resources US, Inc.) [Member] | CATI Operating, LLC [Member] | |||||||
Area of land | a | 1,450 | ||||||
Joint Operating Agreement ( Lonestar Resources US, Inc.) [Member] | CATI Operating, LLC [Member] | Cyclone 9H and 10H Wells [Member] | |||||||
Development costs | $ 800,000 | ||||||
Joint Operating Agreement ( Lonestar Resources US, Inc.) [Member] | CATI Operating, LLC [Member] | Minimum [Member] | |||||||
Percentage of partcipation in agreement | 8.00% | ||||||
Joint Operating Agreement ( Lonestar Resources US, Inc.) [Member] | CATI Operating, LLC [Member] | Maximum [Member] | |||||||
Percentage of partcipation in agreement | 14.00% | ||||||
Purchase Agreement [Member] | 23 Different Entities & Individuals [Member] | Mid-Continent Region [Member] | |||||||
Commercial bank debt assumed in acquisition | $ 30,600,000 | ||||||
Cash paid for acquisition | $ 4,975,000 | ||||||
Asset Purchase Agreement [Member] | 23 Different Entities & Individuals [Member] | Mid-Continent Region [Member] | |||||||
Cash paid for acquisition | $ 4,975,000 | ||||||
Asset Purchase Agreement [Member] | 23 Different Entities & Individuals [Member] | Mid-Continent Region [Member] | Common Stock [Member] | |||||||
Number of shares issued in acquisition | shares | 13,009,664 | 13,009,664 | |||||
Effective date of acquisition | Apr. 1, 2016 | ||||||
Asset Purchase Agreement [Member] | 23 Different Entities & Individuals [Member] | Mid-Continent Region [Member] | Series B Preferred Stock [Member] | |||||||
Number of shares issued in acquisition | shares | 552,000 |
PROPERTY AND EQUIPMENT (Detai27
PROPERTY AND EQUIPMENT (Details) - USD ($) | Dec. 31, 2016 | Mar. 31, 2016 |
Components of oil and gas properties recorded at cost | ||
Proved leasehold costs | $ 37,356,943 | $ 10,266,551 |
Costs of wells and development | 61,725,817 | 37,534,624 |
Capitalized asset retirement costs | 1,473,199 | 717,337 |
Total oil & gas properties | 100,555,959 | 48,518,512 |
Accumulated depreciation and depletion | (36,204,667) | (34,416,407) |
Net Capitalized Costs | $ 64,351,292 | $ 14,102,105 |
PROPERTY AND EQUIPMENT (Detai28
PROPERTY AND EQUIPMENT (Details 1) - USD ($) | Aug. 25, 2016 | Dec. 31, 2016 |
Fair value of net assets at August 25, 2016: | ||
Impairment of oil and gas properties | $ 48,990,520 | |
Purchase Agreement [Member] | 23 Different Entities & Individuals [Member] | Mid-Continent Region [Member] | ||
Purchase Price on August 25, 2016: | ||
Fair value of common stock issued | $ 49,176,530 | |
Fair value of Series B Preferred Stock issued | 14,898,038 | |
Assumption of debt | 30,595,256 | |
Cash at Closing | 4,975,000 | |
Total purchase price | 99,644,824 | |
Fair value of net assets at August 25, 2016: | ||
Accounts receivable | 635,482 | |
Total current assets acquired | 635,482 | |
Oil and gas properties | 50,774,684 | |
Total assets acquired | 51,410,166 | |
Asset retirement obligations | (755,862) | |
Total liabilities acquired | (755,862) | |
Net assets acquired | 50,654,304 | |
Impairment of oil and gas properties | 48,990,520 | |
Total Purchase Price | 99,644,824 | |
Assumption of debt | 30,595,256 | |
Cash funding (due at closing) | 4,975,000 | |
Loan Commitment fee (due at closing) | 200,000 | |
Lien Payoff (due at closing) | 72,657 | |
Restricted cash (received at closing) | 3,360,000 | |
Cash (received at closing) | 797,087 | |
Debt payable after closing | $ 40,000,000 |
ASSET RETIREMENT OBLIGATIONS (D
ASSET RETIREMENT OBLIGATIONS (Details) - USD ($) | 9 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Reconciliation of carrying amounts of asset retirement obligations | ||
Carrying amount at beginning of year | $ 1,179,170 | $ 1,051,694 |
Acquisition of oil and gas properties | 755,862 | |
Accretion | 70,714 | 95,484 |
Carrying amount at end of year | $ 2,005,746 | $ 1,147,418 |
NOTES PAYABLE, AND DEBENTURE (D
NOTES PAYABLE, AND DEBENTURE (Details Narrative) | Jan. 31, 2017USD ($) | Jan. 31, 2017USD ($) | Nov. 18, 2016USD ($)$ / sharesshares | Oct. 13, 2016USD ($) | Oct. 04, 2016USD ($)shares | Sep. 28, 2016USD ($)shares | Aug. 31, 2016USD ($) | Aug. 29, 2016USD ($) | Aug. 26, 2016USD ($)shares | Aug. 25, 2016USD ($) | Apr. 26, 2016USD ($)$ / sharesshares | Apr. 06, 2016USD ($)shares | Mar. 29, 2016USD ($)$ / shares | Mar. 28, 2016USD ($)shares | Dec. 31, 2016USD ($)$ / sharesshares | Dec. 31, 2015USD ($) | Mar. 31, 2016USD ($)$ / shares | Feb. 10, 2017shares | Oct. 11, 2016USD ($) | Jun. 27, 2016USD ($) | Aug. 30, 2015USD ($)$ / shares | Aug. 13, 2013USD ($) |
Repayment of notes payable | $ 1,500,000 | $ 117,000 | ||||||||||||||||||||
Amortization of debt discount | 1,423,203 | 191,460 | ||||||||||||||||||||
Proceeds from notes payable | 1,500,000 | 250,000 | ||||||||||||||||||||
Notes payable, current | 9,958,110 | $ 7,153,734 | ||||||||||||||||||||
Notes payable, noncurrent | 33,619,385 | |||||||||||||||||||||
Proceeds from convertible notes | 150,000 | $ 800,000 | ||||||||||||||||||||
Value of convertible notes | $ 1,445,669 | |||||||||||||||||||||
HFT Enterprises, LLC [Member] | ||||||||||||||||||||||
Number of common shares issued from conversion | shares | 309,866 | |||||||||||||||||||||
Value of convertible notes | $ 464,800 | |||||||||||||||||||||
International Bank of Commerce [Member] | Loan Agreement [Member] | ||||||||||||||||||||||
Notes payable | $ 40,000,000 | |||||||||||||||||||||
Institutional Investors [Member] | First Warrant [Member] | ||||||||||||||||||||||
Shares of common stock called by warrants | shares | 3,615,384 | |||||||||||||||||||||
Institutional Investors [Member] | Subsequent Event [Member] | First Warrant [Member] | ||||||||||||||||||||||
Shares of common stock called by warrants | shares | 3,615,384 | |||||||||||||||||||||
12% Promissory Note Due November 9, 2016 [Member] | CATI [Member] | ||||||||||||||||||||||
Amortization of debt discount | 50,000 | |||||||||||||||||||||
Debt instrument face amount | $ 1,000,000 | |||||||||||||||||||||
Notes interest rate after default | 18.00% | |||||||||||||||||||||
Loan origination fee | $ 50,000 | |||||||||||||||||||||
Overriding royalty interest | 2.00% | |||||||||||||||||||||
12% Promissory Note Due November 9, 2016 [Member] | CATI Operating, LLC [Member] | ||||||||||||||||||||||
Repayments of notes payable | $ 15,667 | |||||||||||||||||||||
Principal payment of promissory note | $ 1,000,000 | |||||||||||||||||||||
Second Amended Letter Loan Agreement - Ms. Rogers [Member] | Subsequent Event [Member] | ||||||||||||||||||||||
Repayment of notes payable | $ 9,000 | |||||||||||||||||||||
Second Amended Letter Loan Agreement - Ms. Rogers [Member] | Robertson Global Credit, LLC [Member] | Subsequent Event [Member] | ||||||||||||||||||||||
Repayment of notes payable | $ 9,000 | |||||||||||||||||||||
Letter Loan - Ms. Rogers [Member] | ||||||||||||||||||||||
Notes payable | $ 6,959,025 | $ 7,500,000 | ||||||||||||||||||||
Amortization of debt discount | 21,323 | |||||||||||||||||||||
Debt maturity date | Apr. 30, 2017 | |||||||||||||||||||||
Payments in lieu of interest | $ 39,000 | |||||||||||||||||||||
Amount of payment in default | 39,000 | |||||||||||||||||||||
Fees and waiver | 98,000 | |||||||||||||||||||||
6% Convertible Promissory Notes [Member] | Mrs. Debra Herman Member] | ||||||||||||||||||||||
Debt instrument beneficial conversion feature amount | $ 155,110 | |||||||||||||||||||||
Conversion price (in dollars per share) | $ / shares | $ 1.50 | |||||||||||||||||||||
Shares of common stock issued on conversion | shares | 103,400 | |||||||||||||||||||||
6% Convertible Promissory Notes [Member] | Mrs. Debra Herman Member] | Convertible Promissory Note Purchase Agreement [Member] | ||||||||||||||||||||||
Conversion price (in dollars per share) | $ / shares | $ 1.50 | |||||||||||||||||||||
Convertible notes payable | $ 150,000 | |||||||||||||||||||||
Shares of common stock called by warrants | shares | 124,285 | |||||||||||||||||||||
Notes interest rate | 6.00% | |||||||||||||||||||||
Notes interest rate after default | 15.00% | |||||||||||||||||||||
Percentage of outstanding common stock after conversion of debt | 19.90% | |||||||||||||||||||||
6% Convertible Promissory Notes [Member] | HFT Enterprises, LLC [Member] | Convertible Promissory Note Purchase Agreement [Member] | ||||||||||||||||||||||
Notes payable | $ 600,000 | |||||||||||||||||||||
Debt instrument beneficial conversion feature amount | $ 600,000 | |||||||||||||||||||||
Conversion price (in dollars per share) | $ / shares | $ 1.50 | |||||||||||||||||||||
Convertible notes payable | $ 450,000 | |||||||||||||||||||||
Notes interest rate | 6.00% | |||||||||||||||||||||
Notes interest rate after default | 15.00% | |||||||||||||||||||||
Percentage of outstanding common stock after conversion of debt | 19.90% | |||||||||||||||||||||
15% Dreeben Note [Member] | Mr. Alan Dreeben [Member] | Convertible Promissory Note Purchase Agreement [Member] | ||||||||||||||||||||||
Notes payable | $ 250,000 | |||||||||||||||||||||
Debt maturity date | Jun. 28, 2016 | |||||||||||||||||||||
Debt instrument face amount | $ 275,000 | |||||||||||||||||||||
Debt discount | $ 25,000 | $ 73,000 | ||||||||||||||||||||
Shares of common stock issued for debt | shares | 15,000 | |||||||||||||||||||||
Value of common stock issued for debt | $ 48,000 | |||||||||||||||||||||
Share price (in dollars per share) | $ / shares | $ 3.20 | |||||||||||||||||||||
15% Dreeben Note [Member] | Mr. Alan Dreeben [Member] | Amended Convertible Promissory Note Purchase Agreement [Member] | ||||||||||||||||||||||
Notes payable | $ 100,000 | |||||||||||||||||||||
Repayment of notes payable | 385,000 | |||||||||||||||||||||
Debt instrument face amount | $ 100,000 | |||||||||||||||||||||
Debt discount | 10,000 | |||||||||||||||||||||
5% Promissory Note [Member] | RAD2 Minerals [Member] | ||||||||||||||||||||||
Notes payable | $ 1,500,000 | |||||||||||||||||||||
Notes interest rate | 5.00% | |||||||||||||||||||||
5% Promissory Note [Member] | RAD2 Minerals [Member] | Loan Agreement [Member] | Mr. Richard N. Azar II [Member] | ||||||||||||||||||||||
Notes payable | 1,500,000 | |||||||||||||||||||||
Debt instrument face amount | $ 1,500,000 | |||||||||||||||||||||
Accrued interest | $ 3,750 | |||||||||||||||||||||
Proceeds from notes payable | $ 18,300,000 | |||||||||||||||||||||
Number of shares pledging | shares | 3,120,606 | |||||||||||||||||||||
5% Promissory Note [Member] | International Bank of Commerce [Member] | Loan Agreement [Member] | ||||||||||||||||||||||
Debt maturity date | Aug. 25, 2019 | |||||||||||||||||||||
Debt instrument face amount | $ 40,000,000 | |||||||||||||||||||||
Debt discount | $ 2,800,000 | |||||||||||||||||||||
Notes interest rate | 5.50% | |||||||||||||||||||||
Shares of common stock issued for debt | shares | 390,290 | |||||||||||||||||||||
Loan origination fee | $ 400,000 | |||||||||||||||||||||
Sinking fund payment | $ 3,360,000 | |||||||||||||||||||||
Description of notes collateral | Secured by a Security Interest in substantially all of our assets and properties, pursuant to three Security Agreements. Also, each of the Guarantors guaranteed the repayment of a portion of the Loan Agreement pursuant to a Limited Guaranty Agreement. | |||||||||||||||||||||
5% Promissory Note [Member] | International Bank of Commerce [Member] | Loan Agreement [Member] | Mr. Richard N. Azar II [Member] | ||||||||||||||||||||||
Notes payable | $ 39,000,000 | |||||||||||||||||||||
Accrued interest | 30,000 | |||||||||||||||||||||
Notes payable, current | 3,000,000 | |||||||||||||||||||||
Notes payable, noncurrent | 36,000,000 | |||||||||||||||||||||
Debt issuance costs | 2,400,000 | |||||||||||||||||||||
5% Promissory Note [Member] | DBS Investments, Ltd. [Member] | Loan Agreement [Member] | Mr. Richard N. Azar II [Member] | ||||||||||||||||||||||
Proceeds from notes payable | $ 9,800,000 | |||||||||||||||||||||
Number of shares pledging | shares | 935,934 | |||||||||||||||||||||
5% Promissory Note [Member] | Saxum Energy, LLC [Member] | Loan Agreement [Member] | Mr. Richard N. Azar II [Member] | ||||||||||||||||||||||
Proceeds from notes payable | $ 4,975,000 | |||||||||||||||||||||
Number of shares pledging | shares | 673,392 | |||||||||||||||||||||
Promissory Note [Member] | Certain Sellers [Member] | ||||||||||||||||||||||
Proceeds from notes payable | $ 30,600,000 | |||||||||||||||||||||
Redeemable Convertible Subordinated Debenture [Member] | Institutional Investors [Member] | First Warrant [Member] | ||||||||||||||||||||||
Shares of common stock called by warrants | shares | 1,384,616 | |||||||||||||||||||||
Redeemable Convertible Subordinated Debenture [Member] | Institutional Investors [Member] | Securities Purchase Agreement [Member] | ||||||||||||||||||||||
Notes payable | $ 530,000 | |||||||||||||||||||||
Shares of common stock issued on conversion | shares | 163,077 | |||||||||||||||||||||
Notes interest rate | 6.00% | |||||||||||||||||||||
Non-Revolving Line of Credit Agreement [Member] | Convertible Promissory Notes [Member] | ||||||||||||||||||||||
Notes payable | $ 2,400,000 | |||||||||||||||||||||
Debt instrument beneficial conversion feature amount | $ 687,987 | |||||||||||||||||||||
Conversion price (in dollars per share) | $ / shares | $ 1.50 | |||||||||||||||||||||
Non-Revolving Line of Credit Agreement [Member] | Convertible Promissory Notes [Member] | Texas Capital & Assets LLC [Member] | ||||||||||||||||||||||
Conversion price (in dollars per share) | $ / shares | $ 1.50 | |||||||||||||||||||||
Debt instrument face amount | $ 200,000 | |||||||||||||||||||||
Shares of common stock issued for debt | shares | 138,377 | |||||||||||||||||||||
Value of common stock issued for debt | $ 207,566 | |||||||||||||||||||||
Non-Revolving Line of Credit Agreement [Member] | Convertible Promissory Notes [Member] | Rockwell Capital Partners [Member] | ||||||||||||||||||||||
Value of debt converted to common stock | $ 830,562 | |||||||||||||||||||||
Conversion price (in dollars per share) | $ / shares | $ 1.50 | |||||||||||||||||||||
Shares of common stock issued on conversion | shares | 553,708 | |||||||||||||||||||||
Debt instrument face amount | $ 800,000 |
NOTES PAYABLE, AND DEBENTURE 31
NOTES PAYABLE, AND DEBENTURE (Details) - USD ($) | Dec. 31, 2016 | Mar. 31, 2016 |
Gross Notes Payable and Debenture | $ 46,527,954 | $ 8,678,734 |
Unamortized debt discount | (2,950,459) | (583,183) |
Total Notes Payable and Debenture | 43,577,495 | 8,095,551 |
Less current portion of long-term debt | (9,958,110) | (8,095,551) |
Long-term portion | 33,619,385 | |
Letter Loan - Ms. Rogers [Member] | ||
Gross Notes Payable and Debenture | 6,959,025 | 7,153,734 |
15% Dreeben Note [Member] | Convertible Promissory Note Purchase Agreement [Member] | Mr. Alan Dreeben [Member] | ||
Gross Notes Payable and Debenture | 275,000 | |
Convertible Promissory Notes [Member] | Silver Star And Rockwell Capital Partners [Member] | Non-Revolving Line of Credit Agreement [Member] | ||
Gross Notes Payable and Debenture | 800,000 | |
6% Convertible Promissory Notes [Member] | Convertible Promissory Note Purchase Agreement [Member] | HFT Enterprises, LLC [Member] | ||
Gross Notes Payable and Debenture | $ 450,000 | |
Debenture [Member] | ||
Gross Notes Payable and Debenture | 530,000 | |
5% Promissory Note [Member] | Loan Agreement [Member] | International Bank of Commerce [Member] | Mr. Richard N. Azar II [Member] | ||
Gross Notes Payable and Debenture | 39,038,929 | |
Long-term portion | $ 36,000,000 |
STOCKHOLDERS' EQUITY (Details N
STOCKHOLDERS' EQUITY (Details Narrative) | Jan. 23, 2017USD ($)shares | Jan. 09, 2017USD ($)$ / sharesshares | Jan. 05, 2017USD ($)shares | Nov. 18, 2016shares | Nov. 17, 2016shares | Oct. 07, 2016USD ($)shares | Sep. 02, 2016USD ($)$ / sharesshares | Sep. 01, 2016USD ($)$ / sharesshares | Apr. 19, 2016shares | Apr. 06, 2016USD ($)$ / sharesshares | Jan. 23, 2016shares | Jul. 15, 2015 | Dec. 23, 2016shares | Dec. 22, 2016USD ($)shares | Dec. 31, 2016USD ($)$ / sharesshares | Dec. 31, 2015USD ($) | Dec. 31, 2016USD ($)$ / sharesshares | Dec. 31, 2015USD ($) | Feb. 10, 2017shares | Aug. 25, 2016$ / shares | Apr. 26, 2016shares | Mar. 31, 2016USD ($)$ / sharesshares |
Reverse stock split ratio | 0.04 | |||||||||||||||||||||
Derivative Liability | $ | $ 59,388 | $ 59,388 | $ 126,960 | |||||||||||||||||||
Fair value of stock | $ | 14,898,038 | |||||||||||||||||||||
Interest expense | $ | $ 1,457,827 | $ 51,394 | $ 2,384,716 | $ 557,613 | ||||||||||||||||||
Mrs. Debra Herman Member] | 6% Convertible Promissory Notes [Member] | ||||||||||||||||||||||
Shares converted | 103,400 | |||||||||||||||||||||
Warrants Issued in 2014 [Member] | Institutional Investors [Member] | ||||||||||||||||||||||
Preferred stock conversion shares | 66,668 | 66,668 | 66,668 | |||||||||||||||||||
Warrant exercise price (in dollars per share) | $ / shares | $ 3.59 | $ 3.59 | $ 3.59 | |||||||||||||||||||
Derivative Liability | $ | $ 160,040 | $ 160,040 | ||||||||||||||||||||
First Warrant [Member] | ||||||||||||||||||||||
Number of common stock issued upon warrant exercise | 7,700,000 | 7,700,000 | ||||||||||||||||||||
First Warrant [Member] | Institutional Investors [Member] | ||||||||||||||||||||||
Shares of common stock called by warrants | 3,615,384 | 3,615,384 | ||||||||||||||||||||
Number of shares issued | 810,000 | |||||||||||||||||||||
Number of common stock issued upon warrant exercise | 1,384,616 | |||||||||||||||||||||
Number of additional common stock issued upon warrant exercise | 2,252,735 | |||||||||||||||||||||
Proceeds from warrant exercises | $ | $ 4,500,000 | |||||||||||||||||||||
Placement agent fees | $ | $ 427,500 | |||||||||||||||||||||
First Warrant [Member] | Institutional Investors [Member] | Redeemable Convertible Subordinated Debenture [Member] | ||||||||||||||||||||||
Shares of common stock called by warrants | 1,384,616 | |||||||||||||||||||||
Warrant exercise price (in dollars per share) | $ / shares | $ 3.25 | |||||||||||||||||||||
Common Stock [Member] | ||||||||||||||||||||||
Shares converted | 20,000 | |||||||||||||||||||||
Conversion ratio | 0.025 | |||||||||||||||||||||
Share price (in dollars per share) | $ / shares | $ 3.78 | |||||||||||||||||||||
Series B Redeemable Convertible Preferred Stock [Member] | ||||||||||||||||||||||
Shares converted | 3,942,857 | |||||||||||||||||||||
Number of shares issued | 552,000 | |||||||||||||||||||||
Share price (in dollars per share) | $ / shares | $ 25 | $ 1.24 | $ 1.24 | |||||||||||||||||||
Number of shares issued, value | $ | $ 13,800,000 | |||||||||||||||||||||
Liquidation preference (in dollars per share) | $ / shares | $ 25 | |||||||||||||||||||||
Number of shares exercisable | The 552,000 shares of Series B Preferred Stock have the following features: ● a liquidation preference senior to all of the Company’s common stock; ● a dividend, payable quarterly, at an annual rate of six percent (6%) of the original issue price until such Series B Preferred Stock is no longer outstanding either due to conversion, redemption or otherwise; and ● voting rights on all matters, with each share having 1 vote. | |||||||||||||||||||||
Dividend rate | 6.00% | |||||||||||||||||||||
Fair value of stock | $ | $ 14,898,038 | |||||||||||||||||||||
Fair market value of the shares paid as dividend | $ | $ 102,516 | $ 102,516 | ||||||||||||||||||||
Stock dividends recognized | 82,674 | |||||||||||||||||||||
Series B Redeemable Convertible Preferred Stock [Member] | Segundo Resources, LLC (Affiliate of RAD2) [Member] | ||||||||||||||||||||||
Number of shares issued | 352,000 | |||||||||||||||||||||
Series B Redeemable Convertible Preferred Stock [Member] | RAD2 [Member] | ||||||||||||||||||||||
Number of shares issued | 200,000 | |||||||||||||||||||||
Series A Convertible Preferred Stock [Member] | ||||||||||||||||||||||
Shares converted | 500 | |||||||||||||||||||||
Stock Purchase Agreement [Member] | Investor [Member] | Series C Preferred Stock [Member] | ||||||||||||||||||||||
Conversion ratio | 0.10 | |||||||||||||||||||||
Preferred stock conversion shares | 32 | |||||||||||||||||||||
Number of shares issued | 474 | 1,067,600 | 1,067,600 | |||||||||||||||||||
Shares converted face value | $ | $ 320,000 | |||||||||||||||||||||
Number of shares issued, value | $ | $ 4,736,550 | |||||||||||||||||||||
Fair market value of the shares paid as dividend | $ | $ 750,000 | $ 750,000 | ||||||||||||||||||||
Stock dividends recognized | 98,462 | |||||||||||||||||||||
Legal fees | $ | 514,000 | |||||||||||||||||||||
Stock original issue discount | $ | $ 236,550 | |||||||||||||||||||||
Additional dividend premium shares | 969,138 | |||||||||||||||||||||
Stock conversion price (in dollars per share) | $ / shares | $ 3.25 | |||||||||||||||||||||
Proceeds from issuance of convertible preferred stock | $ | $ 4,500,000 | |||||||||||||||||||||
Discription of intrest rate | Dividend premium rate increased from 6% to 30% and the conversion discount became 85% of the lowest daily volume weighted average price during the measuring period, less $0.10 per share of common stock not to exceed 85% of the lowest sales prices on the last day of such period less $0.10 per share. | The holder of the Series C Preferred Stock will be entitled to cumulative dividends through maturity, which initially totaled 6% per annum, and are adjustable to up to 35% per annum, based on certain triggering events and the trading price of our common stock, and which totaled 30% per annum as of December 31, 2016, and currently total 34% per annum, payable upon redemption, conversion, or maturity, and when, as and if declared by our Board of Directors in its discretion. | ||||||||||||||||||||
Premium dividend rate | 30.00% | 30.00% | ||||||||||||||||||||
Percentage of issue discount | 5.00% | |||||||||||||||||||||
Stock Purchase Agreement [Member] | Investor [Member] | Series C Preferred Stock [Member] | ||||||||||||||||||||||
Number of shares issued | 53 | |||||||||||||||||||||
Number of shares issued, value | $ | $ 526,450 | |||||||||||||||||||||
Stock original issue discount | $ | 263,000 | |||||||||||||||||||||
Proceeds from issuance of convertible preferred stock | $ | 500,000 | |||||||||||||||||||||
Interest expense | $ | $ 26,450 | |||||||||||||||||||||
Stock Purchase Agreement [Member] | Investor [Member] | Series C Preferred Stock [Member] | ||||||||||||||||||||||
Shares converted | 1,618,462 | |||||||||||||||||||||
Number of shares issued | 527 | |||||||||||||||||||||
Number of shares issued, value | $ | $ 5,260,000 | |||||||||||||||||||||
Dividend rate | 6.00% | |||||||||||||||||||||
Stock original issue discount | $ | $ 263,000 | |||||||||||||||||||||
Stock conversion price (in dollars per share) | $ / shares | $ 3.25 | |||||||||||||||||||||
Certificate of Designations dividend rate | 25.00% | |||||||||||||||||||||
Stock Purchase Agreement [Member] | Investor [Member] | Series C Preferred Stock [Member] | Second Warrant [Member] | ||||||||||||||||||||||
Shares of common stock called by warrants | 1,111,112 | |||||||||||||||||||||
Warrant exercise price (in dollars per share) | $ / shares | $ 4.50 | |||||||||||||||||||||
Convertible Promissory Note Purchase Agreement [Member] | Mrs. Debra Herman Member] | 6% Convertible Promissory Notes [Member] | ||||||||||||||||||||||
Shares of common stock called by warrants | 124,285 | |||||||||||||||||||||
Securities Purchase Agreement [Member] | Institutional Investors [Member] | Redeemable Convertible Subordinated Debenture [Member] | ||||||||||||||||||||||
Shares converted | 163,077 | |||||||||||||||||||||
Stock conversion price (in dollars per share) | $ / shares | $ 3.25 | |||||||||||||||||||||
Securities Purchase Agreement [Member] | 6% Series C Redeemable Convertible Preferred Stock [Member] | Institutional Investors [Member] | ||||||||||||||||||||||
Shares converted | 1,618,462 | |||||||||||||||||||||
Number of shares issued | 474 | 53 | 527 | |||||||||||||||||||
Stock conversion price (in dollars per share) | $ / shares | $ 3.25 | |||||||||||||||||||||
Securities Purchase Agreement [Member] | 6% Series C Redeemable Convertible Preferred Stock [Member] | Second Warrant [Member] | Institutional Investors [Member] | ||||||||||||||||||||||
Shares of common stock called by warrants | 1,111,112 | |||||||||||||||||||||
Warrant exercise price (in dollars per share) | $ / shares | $ 4.50 | |||||||||||||||||||||
Subsequent Event [Member] | First Warrant [Member] | ||||||||||||||||||||||
Number of common stock issued upon warrant exercise | 7,700,000 | |||||||||||||||||||||
Subsequent Event [Member] | First Warrant [Member] | Institutional Investors [Member] | ||||||||||||||||||||||
Shares of common stock called by warrants | 3,615,384 | |||||||||||||||||||||
Subsequent Event [Member] | Series C Preferred Stock [Member] | ||||||||||||||||||||||
Share price (in dollars per share) | $ / shares | $ 1.24 | |||||||||||||||||||||
Fair market value of the shares paid as dividend | $ | $ 102,516 | |||||||||||||||||||||
Stock dividends recognized | 82,674 | |||||||||||||||||||||
Subsequent Event [Member] | Stock Purchase Agreement [Member] | Investor [Member] | Series C Preferred Stock [Member] | ||||||||||||||||||||||
Preferred stock conversion shares | 21 | 21 | ||||||||||||||||||||
Shares converted face value | $ | $ 210,000 | $ 210,000 | ||||||||||||||||||||
Stock dividends recognized | 64,146 | 64,146 | ||||||||||||||||||||
Additional dividend premium shares | 780,694 | 657,196 |
STOCKHOLDERS' EQUITY (Details)
STOCKHOLDERS' EQUITY (Details) | 9 Months Ended | |
Dec. 31, 2016USD ($)$ / sharesshares | ||
Common stock activity | ||
Beginning balance, issued | 1,605,224 | |
Beginning balance, outstanding | 1,605,224 | |
Conversion of Debt, shares | 968,018 | |
Conversion of Debt, value | $ | $ 1,452,029 | [1] |
Conversion of Debt, per share | $ / shares | $ 1.5 | |
Preferred Stock Series A Conversion, shares | 20,000 | |
Preferred Stock Series A Conversion, value | $ | $ 773,900 | [1] |
Preferred Stock Series A Conversion, per share | $ / shares | $ 38.7 | |
Preferred Stock Series C Conversion, shares | 1,067,600 | |
Preferred Stock Series C Conversion, value | $ | $ 320,000 | [1] |
Preferred Stock Series C Conversion, per share | $ / shares | $ 0.3 | |
Warrant Conversion, Shares | 5,000,000 | |
Warrant Conversion, value | $ | $ 4,072,500 | [1] |
Warrant Conversion, per share | $ / shares | $ 0.81 | |
Acquisition Shares | 13,009,664 | |
Acquisition Shares, value | $ | $ 49,176,530 | [1] |
Acquisition Shares, per share | $ / shares | $ 3.78 | |
Lender Shares | 390,290 | |
Lender Shares, value | $ | $ 1,455,782 | [1] |
Lender Shares, per share | $ / shares | $ 3.73 | |
Dreeben Note Shares | 15,000 | |
Dreeben Note Shares, value | $ | $ 48,000 | [1] |
Dreeben Note Shares, per share | $ / shares | $ 3.2 | |
Share-Based Compensation, shares | 22,131 | |
Share-Based Compensation, value | $ | $ 72,035 | [1] |
Share-Based Compensation, per share | $ / shares | $ 3.25 | |
Ending balance, issued | 22,097,927 | |
Ending balance, outstanding | 22,097,927 | |
[1] | Net proceeds or fair value on grant date, as applicable. |
STOCKHOLDERS' EQUITY (Details 1
STOCKHOLDERS' EQUITY (Details 1) | 9 Months Ended | |
Dec. 31, 2016USD ($)$ / sharesshares | ||
Warrants outstanding | 1,367,560 | |
Warrant intrinsic value | $ | $ 13,770 | |
Warrants - Exercise Price 57.50 [Member] | ||
Warrants outstanding | 41,300 | [1] |
Warrant exercise price | $ / shares | $ 57.50 | |
Warrant Expiration date | Oct. 18, 2017 | |
Warrants - Exercise Price 37.50 [Member] | ||
Warrants outstanding | 11,000 | [2] |
Warrant exercise price | $ / shares | $ 37.50 | |
Warrant Expiration date | Apr. 4, 2018 | |
Warrants - Exercise Price 37.50 [Member] | ||
Warrants outstanding | 2,000 | [3] |
Warrant exercise price | $ / shares | $ 37.50 | |
Warrant Expiration date | May 31, 2018 | |
Warrants - Exercise Price 0.01 [Member] | ||
Warrants outstanding | 11,195 | [4] |
Warrant exercise price | $ / shares | $ 0.01 | |
Warrant Expiration date | Aug. 13, 2018 | |
Warrant intrinsic value | $ | $ 13,770 | |
Warrants - Exercise Price 3.59 [Member] | ||
Warrants outstanding | 66,668 | [5] |
Warrant exercise price | $ / shares | $ 3.59 | |
Warrant Expiration date | Apr. 21, 2019 | |
Warrants - Exercise Price 1.50 [Member] | ||
Warrants outstanding | 124,285 | [6] |
Warrant exercise price | $ / shares | $ 1.50 | |
Warrant Expiration date | Apr. 21, 2021 | |
Warrants - Exercise Price 4.50 [Member] | ||
Warrants outstanding | 1,111,112 | [7] |
Warrant exercise price | $ / shares | $ 4.50 | |
Warrant Expiration date | Sep. 2, 2023 | |
[1] | Warrants issued in connection with the sale of units in the Company's unit offering in April 2012. The warrants became exercisable on October 18, 2012, and will remain exercisable thereafter until October 18, 2017. | |
[2] | Warrants issued in connection with the issuance of certain notes in April 2013, of which the outstanding principal and interest was paid in full on August 16, 2013. The warrants were exercisable on the grant date (April 4, 2013) and remain exercisable until April 4, 2018. | |
[3] | Warrants issued in connection with the issuance of certain notes in May 2013, of which the outstanding principal and interest was paid in full on August 16, 2013. The warrants were exercisable on the grant date (May 31, 2013) and remain exercisable until May 31, 2018. | |
[4] | Warrants issued in connection with the Rogers Loan. The warrants were exercisable on the grant date (August 13, 2013) and remain exercisable until August 13, 2018. The exercise price was lowered to $0.01 per share on August 12, 2015. | |
[5] | Warrants issued in connection with the sale of units in the Company's unit offering in April 2014. The Warrants became exercisable on April 21, 2014 and will remain exercisable thereafter until April 21, 2019. | |
[6] | Warrants issued in connection with the HFT Convertible Promissory Notes. The warrants were exercisable on the grant date (April 26, 2016) and remain exercisable until April 26, 2021. | |
[7] | Warrants issued in connection with the sale of Series C Preferred Stock. The warrants were exercisable on the grant date (September 2, 2016) and remain exercisable until March 31, 2017. |
INCOME TAXES (Details Narrative
INCOME TAXES (Details Narrative) | 9 Months Ended |
Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Effective tax rate | 0.00% |
SHARE-BASED COMPENSATION (Detai
SHARE-BASED COMPENSATION (Details Narrative) - USD ($) | 9 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | ||
Shares issued as compensation | 22,131 | ||
Value of shares issued as compensation | [1] | $ 72,035 | |
Options Outstanding | 19,920 | 22,920 | |
Weighted average exercise price of options | $ 35.38 | $ 33.96 | |
Stock option compensation expense | $ 14,449 | ||
Unrecognized compensation expense - nonvested options | $ 16,055 | ||
Unrecognized compensation expense period | 8 months 12 days | ||
Number of options expired during the period | 3,000 | ||
2014 Stock Incentive Plan [Member] | |||
Numbers of shares available for issuance | 56,987 | ||
Additional Shares Granted [Member] | |||
Shares issued as compensation | 19,010 | ||
Value of shares issued as compensation | $ 23,572 | ||
[1] | Net proceeds or fair value on grant date, as applicable. |
SHARE-BASED COMPENSATION (Det37
SHARE-BASED COMPENSATION (Details) - $ / shares | 9 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Remaining terms of the options outstanding | ||
Options Outstanding | 19,920 | 22,920 |
Options Exercisable | 19,920 | |
Stock Options Exercise Price 40.75 [Member] | ||
Remaining terms of the options outstanding | ||
Exercise price | $ 40.75 | |
Remaining Life | 9 months 18 days | |
Options Outstanding | 4,000 | |
Options Exercisable | 4,000 | |
Stock Options Exercise Price 43.50 [Member] | ||
Remaining terms of the options outstanding | ||
Exercise price | $ 43.50 | |
Remaining Life | 9 months 18 days | |
Options Outstanding | 6,000 | |
Options Exercisable | 6,000 | |
Stock Options Exercise Price 39.50 [Member] | ||
Remaining terms of the options outstanding | ||
Exercise price | $ 39.50 | |
Remaining Life | 9 months 18 days | |
Options Outstanding | 2,000 | |
Options Exercisable | 2,000 | |
Stock Options Exercise Price 40.25 [Member] | ||
Remaining terms of the options outstanding | ||
Exercise price | $ 40.25 | |
Remaining Life | 1 year | |
Options Outstanding | 2,000 | |
Options Exercisable | 2,000 | |
Stock Options Exercise Price 5.50 [Member] | ||
Remaining terms of the options outstanding | ||
Exercise price | $ 5.50 | |
Remaining Life | 1 year 2 months 12 days | |
Options Outstanding | 4,000 | |
Options Exercisable | 4,000 | |
Stock Options Exercise Price 51.75 [Member] | ||
Remaining terms of the options outstanding | ||
Exercise price | $ 51.75 | |
Remaining Life | 3 years 9 months 18 days | |
Options Outstanding | 1,920 | |
Options Exercisable | 1,920 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Details Narrative) | 9 Months Ended |
Dec. 31, 2016USD ($)ft² | |
Office space - size | ft² | 4,400 |
Payment for security deposit | $ 8,400 |
Proceeds from security deposit returned | 5,000 |
Lease Year One [Member] | |
Monthly base rent | 7,700 |
Lease Year Two [Member] | |
Monthly base rent | 7,900 |
Lease Year Three [Member] | |
Monthly base rent | 8,000 |
Lease Year Four [Member] | |
Monthly base rent | 8,200 |
Lease Year Five [Member] | |
Monthly base rent | $ 8,400 |
SUPPLEMENTAL CASH FLOW INFORM39
SUPPLEMENTAL CASH FLOW INFORMATION (Details) - USD ($) | 9 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Supplemental cash flow information | ||
Interest | $ 755,903 | $ 74,152 |
SUPPLEMENTAL CASH FLOW INFORM40
SUPPLEMENTAL CASH FLOW INFORMATION (Details 1) - USD ($) | 9 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Supplemental Cash Flow Elements [Abstract] | ||
Reduction in Accounts Payable for Payments Made on Previously Accrued Capital Expenditures | $ 242,957 | $ 76,899 |
Forgiveness of Debt in Transaction Settlement | 600,000 | |
Common Stock Issued in Transaction Settlement | 234,777 | |
Discount from Beneficial Conversion Feature on Convertible Notes | 227,910 | |
Return and Cancellation of Common Stock Issued in Victory Settlement | $ (110,616) | |
Increase in Asset Retirement Obligations | 755,862 | |
Issuance of Common Stock for Segundo Acquisition | 49,176,530 | |
Issuance of Series B Preferred Stock for Segundo Acquisition | 14,898,038 | |
Notes Payable Assumed for Segundo Acquisition | 30,595,256 | |
Accounts Receivable Assumed for Segundo Acquisition | 635,482 | |
Debt discounts on Notes Payable, Long-Term Notes Payable and Convertible Notes Payable | 3,376,900 | |
Issuance of Restricted Common Stock for Dreeben Loan | 48,000 | |
Conversion of Convertible Notes in Common Stock | 1,445,669 | |
Conversion of Preferred Stock to Common Stock | 1,093,900 | |
Stock Dividends Distributable but not Issued | $ 852,516 |
SUBSEQUENT EVENTS (Details Narr
SUBSEQUENT EVENTS (Details Narrative) | Jan. 31, 2017USD ($)shares | Jan. 31, 2017USD ($) | Jan. 31, 2017USD ($) | Jan. 23, 2017USD ($)shares | Jan. 09, 2017USD ($)$ / sharesshares | Jan. 05, 2017USD ($)shares | Oct. 07, 2016shares | Sep. 02, 2016shares | Jun. 30, 2016 | Jan. 23, 2016shares | Feb. 03, 2017USD ($) | Dec. 23, 2016shares | Dec. 22, 2016USD ($)shares | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Jan. 03, 2017a | Mar. 31, 2016USD ($) |
Repayments of notes payable | $ 1,500,000 | $ 117,000 | |||||||||||||||
Principal balance of short-term promissory note | 46,527,954 | $ 8,678,734 | |||||||||||||||
Institutional Investors [Member] | First Warrant [Member] | |||||||||||||||||
Description of increase in premium rate | The dividend premium rate of our Series C Preferred Stock increased from 6% to 31% and the conversion discount became 85% of the lowest daily volume weighted average price during the measuring period, less $0.10 per share of common stock not to exceed 85% of the lowest sales prices on the last day of such period less $0.10 per share. | ||||||||||||||||
Number of shares issued | shares | 810,000 | ||||||||||||||||
Stock Purchase Agreement [Member] | Investor [Member] | Series C Preferred Stock [Member] | |||||||||||||||||
Preferred stock conversion shares | shares | 32 | ||||||||||||||||
Shares converted face value | $ 320,000 | ||||||||||||||||
Stock dividends recognized | shares | 98,462 | ||||||||||||||||
Additional dividend premium shares | shares | 969,138 | ||||||||||||||||
Number of shares issued | shares | 474 | 1,067,600 | 1,067,600 | ||||||||||||||
Fair market value of the shares paid as dividend | $ 750,000 | ||||||||||||||||
Subsequent Event [Member] | Second Amended Letter Loan Agreement - Ms. Rogers [Member] | |||||||||||||||||
Repayments of notes payable | $ 9,000 | ||||||||||||||||
Subsequent Event [Member] | Robertson Global Credit, LLC [Member] | Second Amended Letter Loan Agreement - Ms. Rogers [Member] | |||||||||||||||||
Repayments of notes payable | $ 9,000 | ||||||||||||||||
Subsequent Event [Member] | Mr. Alan Dreeben [Member] | 6% Promissory Note [Member] | |||||||||||||||||
Debt instrument face amount | $ 1,000,000 | 1,000,000 | 1,000,000 | ||||||||||||||
Principal balance of short-term promissory note | 1,050,000 | 1,050,000 | 1,050,000 | ||||||||||||||
Original issue discount | $ 50,000 | $ 50,000 | $ 50,000 | ||||||||||||||
Percentage interest of short-term promissory note | 6.00% | 6.00% | 6.00% | ||||||||||||||
Subsequent Event [Member] | Series C Preferred Stock [Member] | |||||||||||||||||
Stock dividends recognized | shares | 82,674 | ||||||||||||||||
Fair market value of the shares paid as dividend | $ 102,516 | ||||||||||||||||
Share price (in dollars per share) | $ / shares | $ 1.24 | ||||||||||||||||
Subsequent Event [Member] | Restricted Stock [Member] | Mr. Alan Dreeben [Member] | |||||||||||||||||
Shares of common stock issued for debt | shares | 40,000 | ||||||||||||||||
Subsequent Event [Member] | Stock Purchase Agreement [Member] | Investor [Member] | Series C Preferred Stock [Member] | |||||||||||||||||
Preferred stock conversion shares | shares | 21 | 21 | |||||||||||||||
Shares converted face value | $ 210,000 | $ 210,000 | |||||||||||||||
Stock dividends recognized | shares | 64,146 | 64,146 | |||||||||||||||
Additional dividend premium shares | shares | 780,694 | 657,196 | |||||||||||||||
Additional common stock dividend premium shares total | shares | 845,310 | 721,821 | |||||||||||||||
Subsequent Event [Member] | Lease Acquisition and Participation Agreement [Member] | |||||||||||||||||
Leasehold property, purchase consideration | $ 1,430,000 | ||||||||||||||||
Percentage of working interest | 90.00% | ||||||||||||||||
Subsequent Event [Member] | Lease Acquisition and Participation Agreement [Member] | Partner [Member] | |||||||||||||||||
Area of land, net | a | 3,600 | ||||||||||||||||
Area of land, gross | a | 16,300 | ||||||||||||||||
Area of land | a | 70,000 | ||||||||||||||||
Percentage of working interest | 10.00% |