Mexco Energy (MXC) 10-Q 14 Aug 19 2020 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Jun. 30, 2019	Aug. 14, 2019
Document And Entity Information
Entity Registrant Name	MEXCO ENERGY CORP
Entity Central Index Key	0000066418
Document Type	10-Q
Document Period End Date	Jun. 30, 2019
Amendment Flag	false
Current Fiscal Year End Date	--03-31
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business Flag	true
Entity Emerging Growth Company	false
Entity Ex Transition Period	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		2,040,166
Document Fiscal Period Focus	Q1
Document Fiscal Year Focus	2020

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($)	Jun. 30, 2019	Mar. 31, 2019
Current assets
Cash and cash equivalents	$ 150,361	$ 128,252
Accounts receivable:
Oil and natural gas sales	371,536	349,600
Note Receivable		30,421
Prepaid costs and expenses	38,348	53,735
Total current assets	560,245	562,008
Property and equipment, at cost
Oil and gas properties, using the full cost method	36,249,582	35,907,677
Other	113,043	113,043
Accumulated depreciation, depletion and amortization	(27,465,689)	(27,255,451)
Property and equipment, net	8,896,936	8,765,269
Investment - cost basis	75,000
Operating lease, right-of-use asset	125,071
Other noncurrent assets	55,777	122,407
Total assets	9,713,029	9,449,684
Current liabilities
Accounts payable and accrued expenses	152,956	166,113
Operating lease liability, current	64,941
Total current liabilities	217,897	166,113
Long-term liabilities
Long-term debt	189,062
Operating lease liability, long-term	60,403
Asset retirement obligations	862,191	854,034
Total long-term liabilities	1,111,656	854,034
Total liabilities	1,329,553	1,020,147
Commitments and contingencies
Stockholders' equity
Preferred stock - $1.00 par value; 10,000,000 shares authorized; none outstanding
Common stock - $0.50 par value; 40,000,000 shares authorized; 2,107,166 shares issued and 2,040,166 shares outstanding as of June 30, 2019 and March 31, 2019, respectively	1,053,583	1,053,583
Additional paid-in capital	7,313,173	7,305,048
Retained earnings	362,721	416,907
Treasury stock, at cost (67,000 shares)	(346,001)	(346,001)
Total stockholders' equity	8,383,476	8,429,537
Total liabilities and stockholders' equity	$ 9,713,029	$ 9,449,684

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - $ / shares	Jun. 30, 2019	Mar. 31, 2019
Statement of Financial Position [Abstract]
Preferred stock par value	$ 1	$ 1
Preferred stock shares authorized	10,000,000	10,000,000
Preferred stock shares outstanding
Common stock par value	$ 0.50	$ 0.50
Common stock shares authorized	40,000,000	40,000,000
Common stock shares issued	2,107,166	2,107,166
Common stock shares outstanding	2,040,166	2,040,166
Treasury stock, shares	67,000	67,000

Consolidated Statements of Oper

Consolidated Statements of Operations (Unaudited) - USD ($)	3 Months Ended
	Jun. 30, 2019	Jun. 30, 2018
Operating revenues:
Total operating revenues	$ 699,591	$ 749,011
Operating expenses:
Production	219,395	258,935
Accretion of asset retirement obligations	6,747	3,635
Depreciation, depletion and amortization	210,238	216,075
General and administrative	311,061	249,038
Total operating expenses	747,441	727,683
Operating (loss) income	(47,850)	21,328
Other income (expense):
Interest income	20	13
Interest expense	(6,356)	(6,921)
Net other expense	(6,336)	(6,908)
(Loss) income before provision for income taxes	(54,186)	14,420
Income tax
Net (loss) income	$ (54,186)	$ 14,420
(Loss) income per common share:
Basic:	$ (0.03)	$ 0.01
Diluted:	$ (0.03)	$ 0.01
Weighted average common shares outstanding:
Basic:	2,040,166	2,037,266
Diluted:	2,040,166	2,037,266
Oil [Member]
Operating revenues:
Total operating revenues	$ 588,436	$ 570,063
Natural Gas [Member]
Operating revenues:
Total operating revenues	103,258	165,290
Other [Member]
Operating revenues:
Total operating revenues	$ 7,897	$ 13,658

Consolidated Statement of Chang

Consolidated Statement of Changes in Stockholders' Equity (Unaudited) - USD ($)	Common Stock Par Value [Member]	Additional Paid-In Capital [Member]	Retained Earnings [Member]	Treasury Stock [Member]	Total
Balance at Mar. 31, 2018	$ 1,052,133	$ 7,265,601	$ 429,853	$ (346,001)	$ 8,429,537
Net (loss) income			14,420		14,420
Stock based compensation		3,442			3,442
Balance at Jun. 30, 2018	1,052,133	7,269,043	444,273	(346,001)	8,419,448
Balance at Mar. 31, 2019	$ 1,053,583	7,305,048	416,907	$ (346,001)	8,429,537
Balance, shares at Mar. 31, 2019	2,107,166			(67,000)
Net (loss) income			(54,186)		(54,186)
Stock based compensation		8,125			8,125
Balance at Jun. 30, 2019	$ 1,053,583	$ 7,313,173	$ 362,721	$ (346,001)	$ 8,383,476
Balance, shares at Jun. 30, 2019	2,107,166			(67,000)
Common stock shares outstanding at Jun. 30, 2019					2,040,166

Consolidated Statements of Cash

Consolidated Statements of Cash Flows (Unaudited) - USD ($)	3 Months Ended
	Jun. 30, 2019	Jun. 30, 2018
Cash flows from operating activities:
Net (loss) income	$ (54,186)	$ 14,420
Adjustments to reconcile net (loss) income to net cash provided by operating activities:
Stock-based compensation	8,125	3,442
Depreciation, depletion and amortization	210,238	216,075
Accretion of asset retirement obligations	6,747	3,635
Amortization of debt issuance costs	3,593
Changes in operating assets and liabilities
(Increase) decrease in accounts receivable	(21,936)	207,144
Decrease in prepaid expenses	15,387	9,895
Decrease in other assets	30,421
Decrease in right-of-use asset	16,314
Decrease in accounts payable and accrued expenses	(10,148)	(299,061)
Settlement of asset retirement obligations	(2,558)	(1,049)
Decrease in operating lease liability	(16,041)
Net cash provided by operating activities	185,956	154,501
Cash flows from investing activities:
Additions to oil and gas properties	(314,945)	(29,042)
Investment – cost basis	(75,000)
Proceeds from sale of oil and gas properties and equipment	1,098	17,023
Net cash used in investing activities	(388,847)	(12,019)
Cash flows from financing activities:
Reduction of long-term debt		(200,000)
Proceeds from long-term debt	225,000
Net cash provided by (used in) financing activities	225,000	(200,000)
Net increase (decrease) in cash and cash equivalents	22,109	(57,518)
Cash and cash equivalents at beginning of period	128,252	492,610
Cash and cash equivalents at end of period	150,361	435,092
Supplemental disclosure of cash flow information:
Cash paid for interest	4,063	7,964
Non-cash investing and financing activities:
Asset retirement obligations	2,363	1,743
Operating lease - right of use asset and associated liabilities	$ 141,385

Nature of Operations

Nature of Operations	3 Months Ended
	Jun. 30, 2019
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Nature of Operations	1. Nature of Operations Mexco Energy Corporation (a Colorado corporation) and its wholly owned subsidiaries, Forman Energy Corporation (a New York corporation), Southwest Texas Disposal Corporation (a Texas corporation) and TBO Oil & Gas, LLC (a Texas limited liability company) (collectively, the “Company”) are engaged in the exploration, development and production of natural gas, crude oil, condensate and natural gas liquids (“NGLs”). Most of the Company’s oil and gas interests are centered in West Texas and Southeastern New Mexico; however, the Company owns producing properties and undeveloped acreage in fourteen states. Although the Company’s oil and gas interests predominately are operated by others, the Company operates three wells on a lease in which it owns a 100% working interest.

Basis of Presentation and Signi

Basis of Presentation and Significant Accounting Policies	3 Months Ended
	Jun. 30, 2019
Accounting Policies [Abstract]
Basis of Presentation and Significant Accounting Policies	2. Basis of Presentation and Significant Accounting Policies Principles of Consolidation Estimates and Assumptions Interim Financial Statements. Investments. Recently Adopted Accounting Pronouncements.

Asset Retirement Obligations

Asset Retirement Obligations	3 Months Ended
	Jun. 30, 2019
Asset Retirement Obligation Disclosure [Abstract]
Asset Retirement Obligations	3. Asset Retirement Obligations The Company’s asset retirement obligations (“ARO”) relate to the plugging of wells, the removal of facilities and equipment, and site restoration on oil and gas properties. The fair value of a liability for an ARO is recorded in the period in which it is initially incurred, discounted to its present value using the credit adjusted risk-free interest rate, and a corresponding amount capitalized by increasing the carrying amount of the related long-lived asset. The liability is accreted each period until the liability is settled or the well is sold, at which time the liability is removed. The related asset retirement cost is capitalized as part of the carrying amount of our oil and natural gas properties. The ARO is included on the consolidated balance sheets with the current portion being included in the accounts payable and other accrued expenses. The following table provides a rollforward of the AROs for the first three months of fiscal 2020: Carrying amount of asset retirement obligations as of April 1, 2019 $ 861,534 Liabilities incurred 2,363 Liabilities settled (953 ) Accretion expense 6,747 Carrying amount of asset retirement obligations as of June 30, 2019 869,691 Less: Current portion 7,500 Non-Current asset retirement obligation $ 862,191

Long Term Debt

Long Term Debt	3 Months Ended
	Jun. 30, 2019
Debt Disclosure [Abstract]
Long Term Debt	4. Long Term Debt Long-term debt on the Consolidated Balance Sheets consisted of the following as of the dates indicated: June 30, 2019 March 31, 2019 Credit facility $ 225,000 - Unamortized debt issuance costs (35,938 ) - Total long-term debt $ 189,062 - The Company has a loan agreement (the “Agreement”) with West Texas National Bank (“WTNB”), which provided for a credit facility of $1,000,000. The Agreement has no monthly commitment reduction and a borrowing base to be evaluated annually. Under the Agreement, interest on the facility accrues at a rate equal to the prime rate as quoted in the Wall Street Journal plus one-half of one percent (0.5%) floating daily. Interest on the outstanding amount under the Agreement is payable monthly. In addition, the Company will pay an unused commitment fee in an amount equal to one-half of one percent (0.5%) times the daily average of the unadvanced amount of the commitment. The unused commitment fee is payable quarterly in arrears on the last day of each calendar quarter. As of June 30, 2019, there was $775,000 available on the facility. No principal payments are anticipated to be required through the maturity date of the credit facility, December 28, 2021. Upon closing with WTNB on the Agreement, the Company paid a .5% loan origination fee in the amount of $5,000 plus legal and recording expenses totaling $34,532, which were deferred over the life of the credit facility. Amounts borrowed under the Agreement are collateralized by the common stock of the Company’s wholly owned subsidiaries and substantially all of the Company’s oil and gas properties. The Agreement contains customary covenants for credit facilities of this type including limitations on change in control, disposition of assets, mergers and reorganizations. The Company is also obligated to meet certain financial covenants under the Agreement and requires senior debt to earnings before interest, taxes, depreciation and amortization (“EBITDA”) ratios (Senior Debt/EBITDA) less than or equal to 4.00 to 1.00 measured with respect to the four trailing quarters and minimum interest coverage ratios (EBITDA/Interest Expense) of 2.00 to 1.00 for each quarter. The Company is in compliance with all covenants as of June 30, 2019 and believes it will remain in compliance for the next fiscal year. In addition, this Agreement prohibits the Company from paying cash dividends on its common stock without written permission of WTNB. The Agreement does not permit the Company to enter into hedge covering crude oil and natural gas prices. The balance outstanding on the line of credit as of June 30, 2019 was $225,000. The following table is a summary of activity on the WTNB line of credit for the three months ended June 30, 2019: Principal Balance at April 1, 2019: $ - Borrowings 225,000 Repayments - Balance at June 30, 2019: $ 225,000 Subsequently, on July 8, 2019, the Company borrowed $75,000 on the WTNB line of credit and $25,000 on August 7, 2019, leaving a balance of $325,000. On June 27, 2019, the Company deposited $25,000 into a Certificate of Deposit Account at WTNB to collateralize one outstanding letter of credit for $25,000 in lieu of a plugging bond with the Texas Railroad Commission covering the properties the Company operates. On December 26, 2018, the Company deposited $26,250 into a Cash Collateral Account at BOA to collateralize one outstanding letter of credit for $25,000 in lieu of a plugging bond with the Texas Railroad Commission covering the properties the Company operates. Subsequently, on August 9, 2019, this account was closed and the funds were returned to the Company.

Leases

Leases	3 Months Ended
	Jun. 30, 2019
Leases [Abstract]
Leases	5. Leases The Company leases approximately 4,160 rentable square feet of office space from an unaffiliated third party for our corporate office located in Midland, Texas. This includes 1,021 square feet of office space shared with and reimbursed by our majority shareholder. The lease is a 36 month lease that expires in May 2021 and does not include an option to renew. The Company determines an arrangement is a lease at inception. Operating leases are recorded in operating lease right-of-use asset, operating lease liability, current, and operating lease liability, long-term on the consolidated balance sheets. Operating lease right-of-use assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent its obligation to make lease payments arising from the lease. Operating lease assets and liabilities are recognized at the commencement date based on the present value of lease payments over the lease term. As the Company’s lease does not provide an implicit rate, the Company uses the incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. The incremental borrowing rate used at adoption was 6.0%. Significant judgement is required when determining the incremental borrowing rate. The Company chose not to discount because the difference is not significant. Rent expense for lease payments is recognized on a straight-line basis over the lease term. The balance sheets classification of lease assets and liabilities was as follows: June 30, 2019 Assets Operating lease right-of-use asset, beginning balance $ 141,385 Current period amortization (16,314 ) Total operating lease right-of-use asset $ 125,071 Liabilities Operating lease liability, current $ 64,941 Operating lease liability, long term 60,403 Total lease liabilities $ 125,344 Future minimum lease payments as of June 30, 2019 under non-cancellable operating leases are as follows: Lease Obligation Fiscal Year Ended March 31, 2020 $ 48,641 Fiscal Year Ended March 31, 2021 65,721 Fiscal Year Ended March 31, 2022 10,982 Total lease payments $ 125,344 Less: imputed interest - Operating lease liability 125,344 Less: operating lease liability, current (64,941 ) Operating lease liability, long term $ 60,403 Net cash paid for our operating lease for the three months ended June 30, 2019 and 2018 was $12,102 and $7,919, respectively. Rent expense, less sublease income of $3,938 and $2,846, respectively, is included in general and administrative expenses.

Income Taxes

Income Taxes	3 Months Ended
	Jun. 30, 2019
Income Tax Disclosure [Abstract]
Income Taxes	6. Income Taxes A valuation allowance for deferred tax assets, including net operating losses, is recognized when it is more likely than not that some or all of the benefit from the deferred tax asset will not be realized. To assess that likelihood, we use estimates and judgment regarding our future taxable income, and we consider the tax consequences in the jurisdiction where such taxable income is generated, to determine whether a valuation allowance is required. Such evidence can include our current financial position, our results of operations, both actual and forecasted, the reversal of deferred tax liabilities, and tax planning strategies as well as the current and forecasted business economics of our industry. Based on the material write-downs of the carrying value of our oil and natural gas properties during fiscal 2016, we are in a net deferred tax asset position as of June 30, 2019. Our deferred tax asset is $1,276,572 as of June 30, 2019 with a valuation amount of $1,276,572. We believe it is more likely than not that these deferred tax assets will not be realized. Management assesses the available positive and negative evidence to estimate whether sufficient future taxable income will be generated to permit the use of deferred tax assets. The amount of the deferred tax asset considered realizable, however, could be adjusted if estimates of future taxable income are reduced or increased or if objective negative evidence in the form of cumulative losses is no longer present and additional weight is given to subjective evidence such as future expected growth.

Related Party Transactions

Related Party Transactions	3 Months Ended
	Jun. 30, 2019
Related Party Transactions [Abstract]
Related Party Transactions	7. Related Party Transactions Related party transactions for the Company relate to shared office expenditures in addition to administrative and operating expenses paid on behalf of the principal stockholder. The total billed to and reimbursed by the stockholder for the quarters ended June 30, 2019 and 2018 were $10,101 and $16,419, respectively. The principal stockholder pays for his share of the lease amount for the shared office space directly to the lessor. Amounts paid by the principal stockholder directly to the lessor for the three months ending June 30, 2019 and 2018 were $3,938 and $2,846, respectively.

(Loss) Income Per Common Share

(Loss) Income Per Common Share	3 Months Ended
	Jun. 30, 2019
(Loss) income per common share:
(Loss) Income Per Common Share	8. (Loss) Income Per Common Share The Company’s basic net (loss) income per share has been computed based on the weighted average number of common shares outstanding during the period. Diluted net (loss) income per share assumes the exercise of all stock options having exercise prices less than the average market price of the common stock during the period using the treasury stock method and is computed by dividing net (loss) income by the weighted average number of common shares and dilutive potential common shares (stock options) outstanding during the period. In periods where losses are reported, the weighted average number of common shares outstanding excludes potential common shares, because their inclusion would be anti-dilutive. The following is a reconciliation of the number of shares used in the calculation of basic and diluted net (loss) income per share for the three month periods ended June 30, 2019 and 2018. 2019 2018 Net (loss) income $ (54,186 ) $ 14,420 Shares outstanding: Weighted average common shares outstanding – basic 2,040,166 2,037,266 Effect of the assumed exercise of dilutive stock options - - Weighted average common shares outstanding – dilutive 2,040,166 2,037,266 (Loss) income per common share: Basic $ (0.03 ) $ 0.01 Diluted $ (0.03 ) $ 0.01 Due to a net loss for the three months ended June 30, 2019, the weighted average number of common shares outstanding excludes common stock equivalents because their inclusion would be anti-dilutive. For the three months ended June 30, 2018, 148,600 potential common shares relating to stock options were excluded in the computation of diluted net income per share because the price of the options was greater than the average market price of the common shares and therefore, the effect would be anti-dilutive. Anti-dilutive stock options have a weighted average exercise price of $6.54 at June 30, 2018.

Subsequent Events

Subsequent Events	3 Months Ended
	Jun. 30, 2019
Subsequent Events [Abstract]
Subsequent Events	9. Subsequent Events On July 8, 2019, the Company borrowed $75,000 on the WTNB line of credit and $25,000 on August 7, 2019, leaving a balance of $325,000. The Company completed a review and analysis of all events that occurred after the consolidated balance sheet date to determine if any such events must be reported and has determined that there are no other subsequent events to be disclosed.

Basis of Presentation and Sig_2

Basis of Presentation and Significant Accounting Policies (Policies)	3 Months Ended
	Jun. 30, 2019
Accounting Policies [Abstract]
Principles of Consolidation	Principles of Consolidation
Estimates and Assumptions	Estimates and Assumptions
Interim Financial Statements	Interim Financial Statements.
Investments	Investments.
Recently Adopted Accounting Pronouncements	Recently Adopted Accounting Pronouncements.

Asset Retirement Obligations (T

Asset Retirement Obligations (Tables)	3 Months Ended
	Jun. 30, 2019
Asset Retirement Obligation Disclosure [Abstract]
Schedule of Rollforward of Asset Retirement Obligations	The following table provides a rollforward of the AROs for the first three months of fiscal 2020: Carrying amount of asset retirement obligations as of April 1, 2019 $ 861,534 Liabilities incurred 2,363 Liabilities settled (953 ) Accretion expense 6,747 Carrying amount of asset retirement obligations as of June 30, 2019 869,691 Less: Current portion 7,500 Non-Current asset retirement obligation $ 862,191

Long Term Debt (Tables)

Long Term Debt (Tables)	3 Months Ended
	Jun. 30, 2019
Debt Disclosure [Abstract]
Schedule of Long Term Debt	Long-term debt on the Consolidated Balance Sheets consisted of the following as of the dates indicated: June 30, 2019 March 31, 2019 Credit facility $ 225,000 - Unamortized debt issuance costs (35,938 ) - Total long-term debt $ 189,062 -
Summary of Line of Credit Activity	The following table is a summary of activity on the WTNB line of credit for the three months ended June 30, 2019: Principal Balance at April 1, 2019: $ - Borrowings 225,000 Repayments - Balance at June 30, 2019: $ 225,000

Leases (Tables)

Leases (Tables)	3 Months Ended
	Jun. 30, 2019
Leases [Abstract]
Schedule of Operating Lease Assets and Liabilities	The balance sheets classification of lease assets and liabilities was as follows: June 30, 2019 Assets Operating lease right-of-use asset, beginning balance $ 141,385 Current period amortization (16,314 ) Total operating lease right-of-use asset $ 125,071 Liabilities Operating lease liability, current $ 64,941 Operating lease liability, long term 60,403 Total lease liabilities $ 125,344
Schedule of Future Minimum Lease Payments	Future minimum lease payments as of June 30, 2019 under non-cancellable operating leases are as follows: Lease Obligation Fiscal Year Ended March 31, 2020 $ 48,641 Fiscal Year Ended March 31, 2021 65,721 Fiscal Year Ended March 31, 2022 10,982 Total lease payments $ 125,344 Less: imputed interest - Operating lease liability 125,344 Less: operating lease liability, current (64,941 ) Operating lease liability, long term $ 60,403

(Loss) Income Per Common Share

(Loss) Income Per Common Share (Tables)	3 Months Ended
	Jun. 30, 2019
(Loss) income per common share:
Schedule of Reconciliation of Basic Net Loss Per Share and Diluted Loss Per Share	The following is a reconciliation of the number of shares used in the calculation of basic and diluted net (loss) income per share for the three month periods ended June 30, 2019 and 2018. 2019 2018 Net (loss) income $ (54,186 ) $ 14,420 Shares outstanding: Weighted average common shares outstanding – basic 2,040,166 2,037,266 Effect of the assumed exercise of dilutive stock options - - Weighted average common shares outstanding – dilutive 2,040,166 2,037,266 (Loss) income per common share: Basic $ (0.03 ) $ 0.01 Diluted $ (0.03 ) $ 0.01

Nature of Operations (Details N

Nature of Operations (Details Narrative)	Jun. 30, 2019
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Ownership percentage	100.00%

Basis of Presentation and Sig_3

Basis of Presentation and Significant Accounting Policies (Details Narrative)	6 Months Ended
	Jun. 30, 2019USD ($)
Accounting Policies [Abstract]
Percentage of the variable interest entity's	1.00%
Operating lease right-of-use asset	$ 141,385

Assets Retirement Obligations -

Assets Retirement Obligations - Schedule of Rollforward of Asset Retirement Obligations (Details) - USD ($)	3 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Mar. 31, 2019
Asset Retirement Obligation Disclosure [Abstract]
Carrying amount of asset retirement obligations, beginning of year	$ 861,534
Liabilities incurred	2,363
Liabilities settled	(953)
Accretion expense	6,747	$ 3,635
Carrying amount of asset retirement obligations, end of year	869,691
Less: Current portion	7,500
Non-Current asset retirement obligation	$ 862,191		$ 854,034

Long Term Debt (Details Narrati

Long Term Debt (Details Narrative) - USD ($)	3 Months Ended
	Jun. 30, 2019	Aug. 07, 2019	Jul. 08, 2019	Jun. 27, 2019	Dec. 26, 2018
Credit facility face amount	$ 775,000
West Texas National Bank [Member]
Credit facility face amount	325,000
Deposit				$ 25,000
Outstanding letter of credit				$ 25,000
West Texas National Bank [Member] | Subsequent Event [Member]
Line of credit borrowing capacity		$ 25,000	$ 75,000
Bank of America, N.A [Member]
Deposit					$ 26,250
Outstanding letter of credit					$ 25,000
Loan Agreement [Member]
Credit facility face amount	$ 225,000
Debt instrument covenant description	The Company is also obligated to meet certain financial covenants under the Agreement and requires senior debt to earnings before interest, taxes, depreciation and amortization ("EBITDA") ratios (Senior Debt/EBITDA) less than or equal to 4.00 to 1.00 measured with respect to the four trailing quarters and minimum interest coverage ratios (EBITDA/Interest Expense) of 2.00 to 1.00 for each quarter.
Loan Agreement [Member] | West Texas National Bank [Member]
Credit facility face amount	$ 1,000,000
Accrues variable interest rate	0.50%
Line of credit commitment fee description	The Company will pay an unused commitment fee in an amount equal to one-half of one percent (0.5%) times the daily average of the unadvanced amount of the commitment.
Line of credit maturity date	Dec. 28, 2021
Line of credit commitment fee, percentage	0.50%
Loan origination fee	$ 5,000
Legal and recording expenses	$ 34,352

Long Term Debt - Schedule of Lo

Long Term Debt - Schedule of Long Term Debt (Details) - USD ($)	Jun. 30, 2019	Mar. 31, 2019
Debt Disclosure [Abstract]
Credit facility	$ 225,000
Unamortized debt issuance costs	(35,938)
Total long-term debt	$ 189,062

Long Term Debt - Summary of Lin

Long Term Debt - Summary of Line of Credit Activity (Details)	3 Months Ended
	Jun. 30, 2019USD ($)
Debt Disclosure [Abstract]
Balance at April 1, 2019:
Borrowings	225,000
Repayments
Balance at June 30, 2019:	$ 225,000

Leases (Details Narrative)

Leases (Details Narrative)	3 Months Ended		6 Months Ended
	Jun. 30, 2019USD ($)ft²	Jun. 30, 2018USD ($)	Jun. 30, 2019ft²
Area of lease | ft²	4,160		4,160
Lease term	36 months		36 months
Operating lease description			The Company leases its principal office space. On May 15, 2018, the Company agreed to a three year lease.
Incremental borrowing interest percentage			6.00%
Rent expense | $	$ 12,102	$ 7,919
General and Administrative Expenses [Member]
Rent expense | $	$ 3,938	$ 2,846
Shareholder [Member]
Area of lease | ft²	1,021		1,021

Leases - Schedule of Operating

Leases - Schedule of Operating Lease Assets and Liabilities (Details) - USD ($)	Jun. 30, 2019	Mar. 31, 2019
Leases [Abstract]
Operating lease right-of-use asset, beginning balance	$ 141,385
Current period amortization	(164,314)
Total operating lease right-of-use asset	125,071
Operating lease liability - current	64,941
Operating lease liability, long term	60,403
Total lease liabilities	$ 125,344

Leases - Schedule of Future Min

Leases - Schedule of Future Minimum Lease Payments (Details) - USD ($)	Jun. 30, 2019	Mar. 31, 2019
Leases [Abstract]
Fiscal Year Ended March 31, 2020	$ 48,641
Fiscal Year Ended March 31, 2021	65,721
Fiscal Year Ended March 31, 2022	10,982
Total lease payments	125,344
Less: imputed interest
Operating lease liability	125,344
Less: operating lease liability - current	(64,941)
Operating lease liability, long term	$ 60,403

Income Taxes (Details Narrative

Income Taxes (Details Narrative)	Jun. 30, 2019USD ($)
Income Tax Disclosure [Abstract]
Deferred tax asset, net	$ 1,276,572
Valuation allowance	$ 1,276,572

Related Party Transactions (Det

Related Party Transactions (Details Narrative) - USD ($)	3 Months Ended
	Jun. 30, 2019	Jun. 30, 2018
Related Party Transactions [Abstract]
Total billed to and reimbursed expenses	$ 10,101	$ 16,419
Due to related party	$ 3,938	$ 2,846

(Loss) Income Per Common Shar_2

(Loss) Income Per Common Share (Details Narrative) - Stock Option [Member]	3 Months Ended
	Jun. 30, 2018$ / sharesshares
Anti diluted excluding common shares | shares	148,600
Weighted average exercise price | $ / shares	$ 6.54

(Loss) Income Per Common Shar_3

(Loss) Income Per Common Share - Schedule of Reconciliation of Basic Net Loss Per Share and Diluted Loss Per Share (Details) - USD ($)	3 Months Ended
	Jun. 30, 2019	Jun. 30, 2018
(Loss) income per common share:
Net (loss) income	$ (54,186)	$ 14,420
Shares outstanding: Weighted average common shares outstanding - basic	2,040,166	2,037,266
Shares outstanding: Effect of the assumed exercise of dilutive stock options
Shares outstanding: Weighted average common shares outstanding - dilutive	2,040,166	2,037,266
(Loss) income per common share: Basic	$ (0.03)	$ 0.01
(Loss) income per common share: Diluted	$ (0.03)	$ 0.01

Subsequent Events (Details Narr

Subsequent Events (Details Narrative) - Subsequent Event [Member] - West Texas National Bank [Member] - USD ($)	Aug. 07, 2019	Jul. 08, 2019
Line of credit borrowing amount	$ 25,000	$ 75,000
Remaining balance on borrowings	$ 325,000