Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Dec. 31, 2020 | Feb. 10, 2021 | |
Cover [Abstract] | ||
Entity Registrant Name | MEXCO ENERGY CORP | |
Entity Central Index Key | 0000066418 | |
Document Type | 10-Q | |
Document Period End Date | Dec. 31, 2020 | |
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 Shell Company | false | |
Entity Common Stock, Shares Outstanding | 2,071,666 | |
Document Fiscal Period Focus | Q3 | |
Document Fiscal Year Focus | 2021 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Dec. 31, 2020 | Mar. 31, 2020 |
Current assets | ||
Cash and cash equivalents | $ 41,016 | $ 34,381 |
Accounts receivable: | ||
Oil and natural gas sales | 363,387 | 271,315 |
Trade | 16,080 | 13,382 |
Prepaid costs and expenses | 8,754 | 50,188 |
Total current assets | 429,237 | 369,266 |
Property and equipment, at cost | ||
Oil and gas properties, using the full cost method | 38,231,910 | 37,465,172 |
Other | 120,208 | 116,993 |
Accumulated depreciation, depletion and amortization | (28,806,949) | (28,109,252) |
Property and equipment, net | 9,545,169 | 9,472,913 |
Investment - cost basis | 175,000 | 150,000 |
Operating lease, right-of-use asset | 36,987 | 76,130 |
Other noncurrent assets | 2,200 | |
Total assets | 10,186,393 | 10,070,509 |
Current liabilities | ||
Accounts payable and accrued expenses | 94,627 | 116,760 |
Operating lease liability, current | 38,438 | 65,721 |
Total current liabilities | 133,065 | 182,481 |
Long-term liabilities | ||
Long-term debt | 1,071,817 | 757,423 |
Operating lease liability, long-term | 10,982 | |
Asset retirement obligations | 757,684 | 755,261 |
Total long-term liabilities | 1,829,501 | 1,523,666 |
Total liabilities | 1,962,566 | 1,706,147 |
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; 2,118,866 and 2,107,166 shares issued; 2,051,866 and 2,040,166 shares outstanding as of December 31, 2020 and March 31, 2020, respectively | 1,059,433 | 1,053,583 |
Additional paid-in capital | 7,454,109 | 7,339,351 |
Retained earnings | 56,286 | 317,429 |
Treasury stock, at cost (67,000 shares) | (346,001) | (346,001) |
Total stockholders' equity | 8,223,827 | 8,364,362 |
Total liabilities and stockholders' equity | $ 10,186,393 | $ 10,070,509 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Dec. 31, 2020 | Mar. 31, 2020 |
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 | 2,118,866 | 2,107,166 |
Common stock, shares outstanding | 2,051,866 | 2,040,166 |
Treasury stock, shares | 67,000 | 67,000 |
Consolidated Statements of Oper
Consolidated Statements of Operations (Unaudited) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | |
Operating revenue: | ||||
Total operating revenues | $ 699,894 | $ 769,778 | $ 1,706,392 | $ 2,095,253 |
Operating expenses: | ||||
Production | 235,958 | 249,921 | 624,741 | 698,358 |
Accretion of asset retirement obligation | 7,116 | 6,961 | 21,540 | 20,298 |
Depreciation, depletion, and amortization | 237,459 | 228,762 | 697,698 | 648,729 |
General and administrative | 193,288 | 239,346 | 634,526 | 805,701 |
Total operating expenses | 673,821 | 724,990 | 1,978,505 | 2,173,086 |
Operating income (loss) | 26,073 | 44,788 | (272,113) | (77,833) |
Other income (expenses): | ||||
Interest income | 71 | 611 | 387 | 1,110 |
Interest expense | (14,604) | (10,203) | (39,174) | (25,054) |
PPP loan forgiveness | 68,957 | 68,957 | ||
Loss on derivative instruments | (19,200) | |||
Net other income (expense) | 54,424 | (9,592) | 10,970 | (23,944) |
Income (loss) before income taxes | 80,497 | 35,196 | (261,143) | (101,777) |
Net income (loss) | $ 80,497 | $ 35,196 | $ (261,143) | $ (101,777) |
Income (loss) per common share: | ||||
Basic: | $ 0.04 | $ 0.02 | $ (0.13) | $ (0.05) |
Diluted: | $ 0.04 | $ 0.02 | $ (0.13) | $ (0.05) |
Weighted average common shares outstanding: | ||||
Basic: | 2,051,081 | 2,040,166 | 2,044,054 | 2,040,166 |
Diluted: | 2,054,288 | 2,040,166 | 2,044,054 | 2,040,166 |
Oil Sales [Member] | ||||
Operating revenue: | ||||
Total operating revenues | $ 520,261 | $ 643,141 | $ 1,307,588 | $ 1,762,663 |
Natural Gas Sales [Member] | ||||
Operating revenue: | ||||
Total operating revenues | 171,982 | 123,082 | 378,798 | 321,004 |
Other [Member] | ||||
Operating revenue: | ||||
Total operating revenues | $ 7,651 | $ 3,555 | $ 20,006 | $ 11,586 |
Consolidated Statements of Chan
Consolidated Statements 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, 2019 | $ 1,053,583 | $ 7,305,048 | $ 416,907 | $ (346,001) | $ 8,429,537 |
Net loss | (101,777) | (101,777) | |||
Stock based compensation | 24,375 | 24,375 | |||
Balance at Dec. 31, 2019 | 1,053,583 | 7,329,423 | 315,130 | (346,001) | 8,352,135 |
Balance at Sep. 30, 2019 | 1,053,583 | 7,321,298 | 279,934 | (346,001) | 8,308,814 |
Net loss | 35,196 | 35,196 | |||
Stock based compensation | 8,125 | 8,125 | |||
Balance at Dec. 31, 2019 | 1,053,583 | 7,329,423 | 315,130 | (346,001) | 8,352,135 |
Balance at Mar. 31, 2020 | 1,053,583 | 7,339,351 | 317,429 | (346,001) | $ 8,364,362 |
Common stock shares, issued at Mar. 31, 2020 | 2,107,166 | ||||
Common stock shares, held in treasury at Mar. 31, 2020 | (67,000) | ||||
Net loss | (261,143) | $ (261,143) | |||
Issuance of stock through options exercised | 5,850 | 72,945 | 78,795 | ||
Stock based compensation | 41,813 | $ 41,813 | |||
Common stock shares, issued | 11,700 | ||||
Common stock shares, held in treasury, Acquisitions, shares | |||||
Balance at Dec. 31, 2020 | 1,059,433 | 7,454,109 | 56,286 | (346,001) | $ 8,223,827 |
Common stock shares, issued at Dec. 31, 2020 | 2,118,866 | ||||
Common stock shares, held in treasury at Dec. 31, 2020 | (67,000) | ||||
Common stock shares outstanding at Dec. 31, 2020 | 2,051,866 | ||||
Balance at Sep. 30, 2020 | 1,054,333 | 7,375,984 | (24,211) | (346,001) | $ 8,060,105 |
Net loss | 80,497 | 80,497 | |||
Issuance of stock through options exercised | 5,100 | 64,260 | 69,360 | ||
Stock based compensation | 13,865 | 13,865 | |||
Balance at Dec. 31, 2020 | $ 1,059,433 | $ 7,454,109 | $ 56,286 | $ (346,001) | $ 8,223,827 |
Common stock shares, issued at Dec. 31, 2020 | 2,118,866 | ||||
Common stock shares, held in treasury at Dec. 31, 2020 | (67,000) | ||||
Common stock shares outstanding at Dec. 31, 2020 | 2,051,866 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 9 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Cash flows from operating activities: | ||
Net loss | $ (261,143) | $ (101,777) |
Adjustments to reconcile net loss to net cash provided by operating activities: | ||
Stock-based compensation | 41,813 | 24,375 |
Depreciation, depletion and amortization | 697,698 | 648,729 |
Accretion of asset retirement obligations | 21,540 | 20,298 |
PPP loan forgiveness | (68,574) | |
Amortization of debt issuance costs | 9,394 | 10,781 |
Changes in operating assets and liabilities: | ||
Increase in accounts receivable | (94,769) | (59,627) |
Decrease in right-of-use asset | 39,143 | 48,941 |
Decrease in prepaid expenses | 41,433 | 36,340 |
Decrease in other assets | 30,421 | |
Decrease in accounts payable and accrued expenses | (8,009) | (54,375) |
Settlement of asset retirement obligations | (7,398) | (12,054) |
Decrease in operating lease liability | (38,265) | (48,468) |
Net cash provided by operating activities | 372,863 | 543,584 |
Cash flows from investing activities: | ||
Additions to oil and gas properties | (1,024,104) | (1,100,437) |
Additions to other property and equipment | (3,215) | (2,237) |
Drilling refund | 121,970 | |
Investment - cost basis | (25,000) | (100,000) |
Proceeds from sale of oil and gas properties and equipment | 111,752 | 79,133 |
Net cash used in investing activities | (818,597) | (1,123,541) |
Cash flows from financing activities: | ||
Proceeds from exercise of stock options | 78,795 | |
Proceeds from long-term debt | 680,000 | 705,000 |
Proceeds from PPP loan | 68,574 | |
Debt issuance costs | ||
Reduction of long-term debt | (375,000) | (190,000) |
Net cash provided by financing activities | 452,369 | 515,000 |
Net increase (decrease) in cash and cash equivalents | 6,635 | (64,957) |
Cash and cash equivalents at beginning of period | 34,381 | 128,252 |
Cash and cash equivalents at end of period | 41,016 | 63,295 |
Supplemental disclosure of cash flow information: | ||
Cash paid for interest | 28,634 | 14,047 |
Non-cash investing and financing activities: | ||
Asset retirement obligations | 14,013 | 15,475 |
Operating lease - right of use asset and associated liabilities | $ 9,360 | $ 141,385 |
Nature of Operations
Nature of Operations | 9 Months Ended |
Dec. 31, 2020 | |
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. All of the Company’s oil and gas interests are operated by others. Recent Events The outbreak of the novel coronavirus (“COVID-19”) in the first calendar quarter of 2020 and its continued spread across the globe in the second and third calendar quarters of 2020 has resulted, and is likely to continue to result, in significant economic disruption and has, and is likely to continue to, adversely affect the operations of the Company’s business, as the significantly reduced global and national economic activity has resulted in reduced demand for oil and natural gas. Federal, state and local governments mobilized to implement containment mechanisms to minimize impacts to their populations and economies. Various containment measures, which include the quarantining of cities, regions and countries, while aiding in the prevention of further outbreak, have resulted in a severe drop in general economic activity and a resulting decrease in energy demand. In addition, the global economy has experienced a significant disruption to global supply chains. The extent of the COVID-19 outbreak on the Company’s operational and financial performance will continue to depend on certain developments, including the duration and spread of the outbreak and its continued impact on customer activity and third-party providers. The direct impact to the Company’s operations began to take effect at the close of the fiscal year ended March 31, 2020, and continued through the issuance of these condensed consolidated financial statements. The full extent to which the COVID-19 outbreak may affect the Company’s financial conditions, results of operations or liquidity subsequent to the issuance of these condensed consolidated financial statements is uncertain. At the time of this filing, cases of COVID-19 in the U.S. remain high, including in Texas, where we are involved in significant operations. The severe drop in economic activity, travel restrictions and other restrictions due to COVID-19 have had a significant negative impact on the demand for oil and gas. Due to the significantly reduced demand for oil and natural gas as a result of the COVID-19 pandemic and the current oversupply of oil and natural gas in the market, available storage and capacity for the Company’s customers’ production may be limited or completely unavailable in the future, which may further negatively impact the price of oil. The Company cannot predict whether, or when, the global supply and demand imbalance will be resolved or whether, or when, oil and natural gas production and economic activities will return to normalized levels. In the absence of additional reductions to global production, oil, natural gas and NGLs prices could remain at current levels, or decline further, for an extended period of time. |
Basis of Presentation and Signi
Basis of Presentation and Significant Accounting Policies | 9 Months Ended |
Dec. 31, 2020 | |
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. Derivative Financial Instruments. The Company accounts for derivative financial instruments using fair value accounting and recognizes gains and losses in earnings during the period in which they occur. Unsettled derivative instruments are recorded in the accompanying consolidated balance sheets as either a current or non-current asset or a liability measured at its fair value. The Company only offsets derivative assets and liabilities for arrangements with the same counterparty when right of offset exists. Derivative assets and liabilities with different counterparties are recorded gross in the consolidated balance sheets. Derivative contract settlements are reflected in operating activities in the accompanying consolidated statements of cash flows. The Company uses certain pricing models to determine the fair value of its derivative financial instruments. Inputs to the pricing models include publicly available prices and forward price curves generated from a compilation of data gathered from third parties. Company management validates the data provided by third parties by understanding the pricing models used, obtaining market values from other pricing sources, analyzing pricing data in certain situations and confirming that those securities trade in active markets. Recently Adopted Accounting Pronouncements. |
Asset Retirement Obligations
Asset Retirement Obligations | 9 Months Ended |
Dec. 31, 2020 | |
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 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 in 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 nine months of fiscal 2021: Carrying amount of asset retirement obligations as of April 1, 2020 $ 762,761 Liabilities incurred 14,013 Liabilities settled (33,130 ) Accretion expense 21,540 Carrying amount of asset retirement obligations as of December 31, 2020 765,184 Less: Current portion 7,500 Non-Current asset retirement obligation $ 757,684 |
Stock-based Compensation
Stock-based Compensation | 9 Months Ended |
Dec. 31, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Stock-based Compensation | 4. Stock-based Compensation The Company recognized stock-based compensation expense of $13,865 and $8,125 in general and administrative expense in the Consolidated Statements of Operations for the three months ended December 31, 2020 and 2019, respectively. Stock-based compensation expense recognized for the nine months ended December 31, 2020 and 2019 was $41,813 and $24,375, respectively. The total cost related to non-vested awards not yet recognized at December 31, 2020 totals approximately $127,996 which is expected to be recognized over a weighted average of 2.70 years. The following table is a summary of activity of stock options for the nine months ended December 31, 2020: Number of Weighted Weighted Average Outstanding at April 1, 2020 227,700 $ 5.65 4.83 Granted - - Exercised (11,700 ) - Forfeited or Expired (35,200 ) - Outstanding at December 31, 2020 180,800 $ 5.49 5.11 Vested at December 31, 2020 119,800 $ 6.33 3.28 Exercisable at December 31, 2020 119,800 $ 6.33 3.28 During the nine months ended December 31, 2020 and 2019, no stock options were granted. During the nine months ended December 31, 2020, stock options covering 11,700 shares were exercised with a total intrinsic value of $12,217. The Company received proceeds of $78,795 from these exercises. During the nine months ended December 31, 2019, no stock options were exercised. During the nine months ended December 31, 2020, 1,000 unvested stock options were forfeited due to the resignation of an employee and 34,200 vested stock options expired unexercised. There were no stock options forfeited or expired during the nine months ended December 31, 2019. No forfeiture rate is assumed for stock options granted to directors or employees due to the forfeiture rate history of these types of awards. Outstanding options at December 31, 2020 expire between November 2021 and March 2030 and have exercise prices ranging from $3.34 to $7.00. Subsequently, in January 2021, stock options covering 19,800 shares were exercised with a total intrinsic value of $53,751. The Company received proceeds of $134,640 from these exercises. |
Long Term Debt
Long Term Debt | 9 Months Ended |
Dec. 31, 2020 | |
Debt Disclosure [Abstract] | |
Long Term Debt | 5. Long Term Debt Long-term debt on the Consolidated Balance Sheets consisted of the following as of the dates indicated: December 31, March 31, Credit facility $ 1,100,000 $ 795,000 Unamortized debt issuance costs (28,183 ) (37,577 ) Total long-term debt $ 1,071,817 $ 757,423 On December 28, 2018, the Company entered into a loan agreement (the “Agreement”) with West Texas National Bank (“WTNB”), which provided for a credit facility of $1,000,000 with a maturity date of December 28, 2021. The Agreement has no monthly commitment reduction and a borrowing base to be evaluated annually. On February 28, 2020, the Agreement was amended to increase the credit facility to $2,500,000, extend the maturity date to March 28, 2023 and increase the borrowing base to $1,500,000. Under the Agreement, interest on the credit 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 December 31, 2020, there was $400,000 available on the credit facility. No principal payments are anticipated to be required through the maturity date of the credit facility, March 28, 2023. Upon closing with WTNB on the original 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 original life of the credit facility. Upon closing the amendment to the Agreement, the Company paid a .1% loan origination fee of $2,500 and an extension fee of $3,125 plus legal and recording expenses totaling $12,266, which were also deferred over the new remaining 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 December 31, 2020 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 agreements covering crude oil and natural gas prices without prior WTNB approval. The Company obtained written permission from WTNB prior to entering into the current hedge agreement discussed in Note 8. The balance outstanding on the line of credit as of December 31, 2020 was $1,100,000. The following table is a summary of activity on the WTNB line of credit for the nine months ended December 31, 2020: Principal Balance at April 1, 2020: $ 795,000 Borrowings 680,000 Repayments (375,000 ) Balance at December 31, 2020: $ 1,100,000 Subsequently, on January 11, 2021, the Company borrowed $75,000 on the WTNB credit facility and on January 15, 2021, made a payment of $75,000 on the credit facility, leaving a balance of $1,100,000. The Company also maintained 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 operated. The operated property was sold effective December 1, 2019 and the letter of credit was cancelled. On April 10, 2020, the Certificate of Deposit Account was terminated and the funds deposited into the Company’s operating account. |
Paycheck Protection Program (PP
Paycheck Protection Program (PPP) Loan | 9 Months Ended |
Dec. 31, 2020 | |
Debt Disclosure [Abstract] | |
Paycheck Protection Program (PPP) Loan | 6. Paycheck Protection Program (PPP) Loan. On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security Act commonly referred to as the CARES Act became effective. One component of the CARES Act was the paycheck protection program (“PPP”) which provides small businesses with the resources needed to maintain their payroll and cover applicable overhead. The PPP is implemented by the United States Small Business Administration (“SBA”) with support from the Department of the Treasury. The PPP provides funds to pay up to 24 weeks of payroll costs including benefits. Funds can also be used to pay interest on mortgages, rent, and utilities. The Company applied for, and was accepted to participate in this program. On May 5, 2020, the Company received funding for approximately $68,600. The loan was a two-year loan with a maturity date of May 5, 2022 an annual interest rate of 1% payable monthly with the first six monthly payments deferred. The Company applied for and on November 25, 2020 was approved for loan forgiveness in the amount of $68,957 under the provisions of Section 1106 of the CARES Act. This was for the forgiveness of our PPP loan in the amount of $68,574 and $383 in accrued interest expense. The Company was eligible for loan forgiveness because the Company used all loan proceeds to partially subsidize direct payroll expenses. |
Leases
Leases | 9 Months Ended |
Dec. 31, 2020 | |
Leases [Abstract] | |
Leases | 7. Leases The Company leases approximately 4,160 rentable square feet of office space from an unaffiliated third party for the corporate office located in Midland, Texas. This includes 1,021 square feet of office space shared with and reimbursed by the majority shareholder. The lease is a 36-month lease that expires in May 2021 and does not include an option to renew. In June 2020, in exchange for a reduction in rent for the months of June and July 2020, the Company agreed to a 2-month extension to its current lease agreement at the regular monthly rate extending its current lease expiration date to July 2021. 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: December 31, Assets Operating lease right-of-use asset, beginning balance $ 76,130 Current period amortization (48,503 ) Lease amendment (1,622 ) Lease extension 10,982 Total operating lease right-of-use asset, ending balance $ 36,987 Liabilities Operating lease liability, current $ 38,438 Operating lease liability, long term - Total lease liabilities $ 38,438 Future minimum lease payments as of December 31, 2020 under non-cancellable operating leases are as follows: Lease Fiscal Year Ended March 31, 2021 16,473 Fiscal Year Ended March 31, 2022 21,965 Total lease payments $ 38,438 Less: imputed interest - Operating lease liability 38,438 Less: operating lease liability, current (38,438 ) Operating lease liability, long term $ - Net cash paid for our operating lease for the nine months ended December 31, 2020 and 2019 was $34,121 and $35,300, respectively. Rent expense, less sublease income of $14,315 and $13,167, respectively, is included in general and administrative expenses. |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Dec. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 8. Fair Value Measurements The Company applies FASB ASC Topic 820, Fair Value Measurements and Disclosure (“ASC Topic 820”), which establishes a framework for measuring fair value based upon inputs that market participants use in pricing an asset or liability, which are classified into two catagories: observable inputs or unobservable inputs. Observable inputs represent market data obtained from independent sources, whereas unobservable inputs reflect a company’s own market assumptions, which are used if observable inputs are not reasonably available without undue cost and effort. These two types of inputs are further prioritized into the following fair value input hierarchy: Level 1: Quoted prices for identical instruments in active markets at the measurement date. Level 2: Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations in which all significant inputs and significant value drivers are observable in active markets at the measurement date and for the anticipated term of the instrument. Level 3: Valuations derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable inputs that reflect the reporting entity’s own assumptions about the assumptions market participants would use in pricing the asset or liability acquired, based on the best information available in the circumstances. The carrying amount reported in the accompanying consolidated balance sheets for cash and cash equivalents, accounts receivable and accounts payable approximates fair value because of the immediate or short-term maturity of these financial instruments. The fair value amount reported in the accompanying consolidated balance sheets for long-term debt approximates fair value because the actual interest rates do not significantly differ from current rates offered for instruments with similar characteristics. See the Company’s Note 5 on Long Term Debt for further discussion. Fair Value Measurements on a Recurring Basis A financial instrument’s level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. The Company’s commodity derivative instruments were carried at fair value on a recurring basis in the Company’s consolidated balance sheets. The Company uses certain pricing models to determine the fair value of its derivative financial instruments. Inputs to the pricing models include publicly available prices and forward price curves generated from a compilation of data gathered from third parties. Company management validates the data provided by third parties by understanding the pricing models used, obtaining market values from other pricing sources, analyzing pricing data in certain situations and confirming that those securities trade in active markets. Assumed credit risk adjustments, based on published credit ratings and public bond yield spreads are applied to the Company’s commodity derivatives. The Company’s derivative instruments are subject to netting arrangements and qualify for net presentation in the consolidated balance sheets in those instances where such arrangements exist with the respective counterparty. To ensure these derivative instruments are recorded at fair value, valuation adjustments may be required to reflect the creditworthiness of either party as well as market constraints on liquidity. There was no adjustment as of December 31, 2020. Fair Value Measurements on a Nonrecurring Basis The asset retirement obligation estimates are derived from historical costs and management’s expectation of future cost environments and, therefore, the Company has designated these liabilities as Level 3 measurements. The significant inputs to this fair value measurement include estimates of plugging, abandonment and remediation costs, well life, inflation and credit-adjusted risk-free rate. See Note 3 for a reconciliation of the beginning and ending balances of the liability for the Company’s asset retirement obligations. |
Derivative Financial Instrument
Derivative Financial Instruments | 9 Months Ended |
Dec. 31, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | 9. Derivative Financial Instruments It is the Company’s policy to enter into derivative contracts only with counterparties that are creditworthy financial institutions deemed by management as competent and competitive. The Company is exposed to certain risks relating to its ongoing business operations, such as commodity price risk. Derivative contracts are utilized to economically hedge the Company’s exposure to price fluctuations and reduce the variability in the Company’s cash flows associated with anticipated sales of future oil and natural gas production. The Company follows FASB ASC Topic 815, Derivatives and Hedging (ASC Topic 815), to account for its derivative financial instruments. The Company’s crude oil derivative positions consisted of put options. The Company has elected not to designate any of its derivative contracts for hedge accounting. Accordingly, the Company records the net change in the mark-to-market valuation of these derivative contracts, as well as all payments and receipts on settled derivative contracts, in net realized and unrealized gain (loss) on commodity price hedging contracts on the consolidated statements of operations. All derivative contracts are recorded at fair market value and included in the consolidated balance sheets as assets or liabilities. As of December 31, 2020, the Company has no derivative contracts. The Company may have multiple hedge positions that span a several-month time period and result in fair value asset and liability positions. At the end of the reporting periods, those positions are offset to a single fair value asset or liability for each commodity and the netted balance is reflected in the consolidated balance sheets as an asset or liability. During the quarter ended June 30, 2020 the Company entered into a series of crude oil put option contracts. All of these such contracts expired in July and August 2020. The following tables summarizes the amounts of the Company’s realized and unrealized losses on derivative contracts listed as loss on derivative instruments in the Company’s consolidated statements of operations for the nine months ended December 31, 2020. Loss Recognized Realized loss on oil price hedging contracts $ (19,200 ) Unrealized gain (loss) on oil price hedging contracts - Net realized and unrealized loss on derivative contracts $ (19,200 ) |
Income Taxes
Income Taxes | 9 Months Ended |
Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 10. 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 December 31, 2020. Our deferred tax asset is $1,312,129 as of December 31, 2020 with a valuation amount of $1,312,129. 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 | 9 Months Ended |
Dec. 31, 2020 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | 11. 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 three months ended December 31, 2020 and 2019 was $9,122 and $12,289, respectively. The total billed to and reimbursed by the stockholder for the nine months ended December 31, 2020 and 2019 was $27,443 and $32,232, 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 December 31, 2020 and 2019 were $4,045 and $3,981, respectively. Amounts paid by the principal stockholder directly to the lessor for the nine months ending December 31, 2020 and 2019 were $11,694 and $11,900, respectively. |
Income (Loss) Per Common Share
Income (Loss) Per Common Share | 9 Months Ended |
Dec. 31, 2020 | |
Income (loss) per common share: | |
Income (Loss) Per Common Share | 12. Income (loss) Per Common Share The Company’s basic net income (loss) per share has been computed based on the weighted average number of common shares outstanding during the period. Diluted net income (loss) 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 income (loss) 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 income (loss) per share for the three and nine month periods ended December 31, 2020 and 2019: Three Months Ended Nine Months Ended December 31 December 31 2020 2019 2020 2019 Net income (loss) $ 80,047 $ 35,196 $ (261,143 ) $ (101,777 ) Shares outstanding: Weighted avg. shares outstanding – basic 2,051,081 2,040,166 2,044,054 2,040,166 Effect of assumed exercise of dilutive stock options 3,207 - - - Weighted avg. shares outstanding – dilutive 2,054,288 2,040,166 2,044,054 2,040,166 Income (loss) per common share: Basic $ 0.04 $ 0.02 $ (0.13 ) $ (0.05 ) Diluted $ 0.04 $ 0.02 $ (0.13 ) $ (0.05 ) For the three months ended December 31, 2019, 139,800 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 $6.12 at December 31, 2020. Due to a net loss for the nine months ended December 31, 2020 and 2019, the weighted average number of common shares outstanding excludes common stock equivalents because their inclusion would be anti-dilutive. |
Subsequent Events
Subsequent Events | 9 Months Ended |
Dec. 31, 2020 | |
Subsequent Events [Abstract] | |
Subsequent Events | 13. Subsequent Events 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) | 9 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | Principles of Consolidation |
Estimates and Assumptions | Estimates and Assumptions |
Interim Financial Statements | Interim Financial Statements. |
Investments | Investments. |
Derivative Financial Instruments | Derivative Financial Instruments. The Company accounts for derivative financial instruments using fair value accounting and recognizes gains and losses in earnings during the period in which they occur. Unsettled derivative instruments are recorded in the accompanying consolidated balance sheets as either a current or non-current asset or a liability measured at its fair value. The Company only offsets derivative assets and liabilities for arrangements with the same counterparty when right of offset exists. Derivative assets and liabilities with different counterparties are recorded gross in the consolidated balance sheets. Derivative contract settlements are reflected in operating activities in the accompanying consolidated statements of cash flows. The Company uses certain pricing models to determine the fair value of its derivative financial instruments. Inputs to the pricing models include publicly available prices and forward price curves generated from a compilation of data gathered from third parties. Company management validates the data provided by third parties by understanding the pricing models used, obtaining market values from other pricing sources, analyzing pricing data in certain situations and confirming that those securities trade in active markets. |
Recently Adopted Accounting Pronouncements | Recently Adopted Accounting Pronouncements. |
Asset Retirement Obligations (T
Asset Retirement Obligations (Tables) | 9 Months Ended |
Dec. 31, 2020 | |
Asset Retirement Obligation Disclosure [Abstract] | |
Schedule of Rollforward of Asset Retirement Obligations | The following table provides a rollforward of the AROs for the first nine months of fiscal 2021: Carrying amount of asset retirement obligations as of April 1, 2020 $ 762,761 Liabilities incurred 14,013 Liabilities settled (33,130 ) Accretion expense 21,540 Carrying amount of asset retirement obligations as of December 31, 2020 765,184 Less: Current portion 7,500 Non-Current asset retirement obligation $ 757,684 |
Stock-based Compensation (Table
Stock-based Compensation (Tables) | 9 Months Ended |
Dec. 31, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Summary of Activity of Stock Options | The following table is a summary of activity of stock options for the nine months ended December 31, 2020: Number of Weighted Weighted Average Outstanding at April 1, 2020 227,700 $ 5.65 4.83 Granted - - Exercised (11,700 ) - Forfeited or Expired (35,200 ) - Outstanding at December 31, 2020 180,800 $ 5.49 5.11 Vested at December 31, 2020 119,800 $ 6.33 3.28 Exercisable at December 31, 2020 119,800 $ 6.33 3.28 |
Long Term Debt (Tables)
Long Term Debt (Tables) | 9 Months Ended |
Dec. 31, 2020 | |
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: December 31, March 31, Credit facility $ 1,100,000 $ 795,000 Unamortized debt issuance costs (28,183 ) (37,577 ) Total long-term debt $ 1,071,817 $ 757,423 |
Summary of Line of Credit Activity | The following table is a summary of activity on the WTNB line of credit for the nine months ended December 31, 2020: Principal Balance at April 1, 2020: $ 795,000 Borrowings 680,000 Repayments (375,000 ) Balance at December 31, 2020: $ 1,100,000 |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Dec. 31, 2020 | |
Leases [Abstract] | |
Schedule of Operating Lease Assets and Liabilities | The balance sheets classification of lease assets and liabilities was as follows: December 31, Assets Operating lease right-of-use asset, beginning balance $ 76,130 Current period amortization (48,503 ) Lease amendment (1,622 ) Lease extension 10,982 Total operating lease right-of-use asset, ending balance $ 36,987 Liabilities Operating lease liability, current $ 38,438 Operating lease liability, long term - Total lease liabilities $ 38,438 |
Schedule of Future Minimum Lease Payments | Future minimum lease payments as of December 31, 2020 under non-cancellable operating leases are as follows: Lease Fiscal Year Ended March 31, 2021 16,473 Fiscal Year Ended March 31, 2022 21,965 Total lease payments $ 38,438 Less: imputed interest - Operating lease liability 38,438 Less: operating lease liability, current (38,438 ) Operating lease liability, long term $ - |
Derivative Financial Instrume_2
Derivative Financial Instruments (Tables) | 9 Months Ended |
Dec. 31, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Summary of Realized and Unrealized Losses On Derivative Contracts | The following tables summarizes the amounts of the Company’s realized and unrealized losses on derivative contracts listed as loss on derivative instruments in the Company’s consolidated statements of operations for the nine months ended December 31, 2020. Loss Recognized Realized loss on oil price hedging contracts $ (19,200 ) Unrealized gain (loss) on oil price hedging contracts - Net realized and unrealized loss on derivative contracts $ (19,200 ) |
Income (Loss) Per Common Share
Income (Loss) Per Common Share (Tables) | 9 Months Ended |
Dec. 31, 2020 | |
Income (loss) per common share: | |
Schedule of Reconciliation of Basic and Diluted Net Income (loss) Per Share | The following is a reconciliation of the number of shares used in the calculation of basic and diluted net income (loss) per share for the three and nine month periods ended December 31, 2020 and 2019: Three Months Ended Nine Months Ended December 31 December 31 2020 2019 2020 2019 Net income (loss) $ 80,047 $ 35,196 $ (261,143 ) $ (101,777 ) Shares outstanding: Weighted avg. shares outstanding – basic 2,051,081 2,040,166 2,044,054 2,040,166 Effect of assumed exercise of dilutive stock options 3,207 - - - Weighted avg. shares outstanding – dilutive 2,054,288 2,040,166 2,044,054 2,040,166 Income (loss) per common share: Basic $ 0.04 $ 0.02 $ (0.13 ) $ (0.05 ) Diluted $ 0.04 $ 0.02 $ (0.13 ) $ (0.05 ) |
Basis of Presentation and Sig_3
Basis of Presentation and Significant Accounting Policies (Details Narrative) | 9 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Cost method investments, percentage description | The Company accounts for investments of less than 1% of any limited liability company using the cost method. |
Asset Retirement Obligations -
Asset Retirement Obligations - Schedule of Rollforward of Asset Retirement Obligations (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Mar. 31, 2020 | |
Asset Retirement Obligation Disclosure [Abstract] | |||||
Carrying amount of asset retirement obligations, beginning of the period | $ 762,761 | ||||
Liabilities incurred | 14,013 | ||||
Liabilities settled | (33,130) | ||||
Accretion expense | $ 7,116 | $ 6,961 | 21,540 | $ 20,298 | |
Carrying amount of asset retirement obligations, end of the period | 765,184 | 765,184 | |||
Less: Current portion | 7,500 | 7,500 | |||
Non-Current asset retirement obligation | $ 757,684 | $ 757,684 | $ 755,261 |
Stock-based Compensation (Detai
Stock-based Compensation (Details Narrative) - USD ($) | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||
Jan. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | |
Total cost related to non-vested awards | $ 127,996 | $ 127,996 | |||
Non-vested awards, weighted average period of recognition | 2 years 8 months 12 days | ||||
Number of stock options granted shares | |||||
Stock options shares exercised | 11,700 | ||||
Stock options intrinsic value exercised | $ 12,217 | ||||
Proceeds from options exercised | $ 78,795 | ||||
Stock options shares forfeited | 1,000 | ||||
Stock options shares expired | 34,200 | ||||
Outstanding options expiration date description | Outstanding options at December 31, 2020 expire between November 2021 and March 2030 and have exercise prices ranging from $3.34 to $7.00. | ||||
Stock option exercise price, minimum | $ 3.34 | ||||
Stock option exercise price, maximum | $ 7 | ||||
Subsequent Event [Member] | |||||
Stock options shares exercised | 19,800 | ||||
Stock options intrinsic value exercised | $ 53,751 | ||||
Proceeds from options exercised | $ 134,640 | ||||
Minimum [Member] | |||||
Outstanding options expiration month and year | 2021-11 | ||||
Maximum [Member] | |||||
Outstanding options expiration month and year | 2030-03 | ||||
General and Administrative Expense [Member] | |||||
Stock based compensation expense | $ 13,943 | $ 8,125 | $ 41,813 | $ 24,375 |
Stock-based Compensation - Summ
Stock-based Compensation - Summary of Activity of Stock Options (Details) - $ / shares | 9 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Number of Shares, Granted | ||
Number of Shares, Exercised | (11,700) | |
Stock Option [Member] | ||
Number of Shares, Beginning Balance | 227,700 | |
Number of Shares, Granted | ||
Number of Shares, Exercised | (11,700) | |
Number of Shares, Forfeited or Expired | (35,200) | |
Number of Shares, Ending Balance | 180,800 | |
Number of Shares, Vested | 119,800 | |
Number of Shares, Exercisable | 119,800 | |
Weighted Average Exercise Price Per Share, Beginning Balance | $ 5.65 | |
Weighted Average Exercise Price Per Share, Granted | ||
Weighted Average Exercise Price Per Share, Exercised | ||
Weighted Average Exercise Price Per Share, Forfeited or Expired | ||
Weighted Average Exercise Price Per Share, Ending Balance | 5.49 | |
Weighted Average Exercise Price Per Share, Vested | 6.33 | |
Weighted Average Exercise Price Per Share, Exercisable | $ 6.33 | |
Weighted Average Remaining Contract Life in Years, Beginning Balance | 4 years 9 months 29 days | |
Weighted Average Remaining Contract Life in Years, Ending Balance | 5 years 1 month 9 days | |
Weighted Aggregate Average Remaining Contract Life in Years, Vested | 3 years 3 months 11 days | |
Weighted Aggregate Average Remaining Contract Life in Years, Exercisable | 3 years 3 months 11 days |
Long Term Debt (Details Narrati
Long Term Debt (Details Narrative) - USD ($) | Jan. 15, 2021 | Feb. 28, 2020 | Dec. 28, 2018 | Dec. 31, 2020 | Jan. 11, 2021 | Mar. 31, 2020 |
Line of credit | $ 1,100,000 | $ 795,000 | ||||
Repayments | 375,000 | |||||
West Texas National Bank [Member] | ||||||
Outstanding letter of credit | $ 25,000 | |||||
West Texas National Bank [Member] | Subsequent Event [Member] | ||||||
Line of credit | $ 1,100,000 | $ 75,000 | ||||
Repayments | $ 75,000 | |||||
Loan Agreement [Member] | ||||||
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 | $ 2,500,000 | $ 1,000,000 | $ 400,000 | |||
Line of credit maturity date | Mar. 28, 2023 | Dec. 28, 2021 | ||||
Line of credit, increase in borrowing base amount | $ 1,500,000 | |||||
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 commitment fee, percentage | 0.50% | |||||
Loan origination fee, percentage | 0.50% | 0.10% | ||||
Loan origination fee | $ 5,000 | $ 2,500 | ||||
Legal and recording expenses | $ 34,532 | 12,266 | ||||
Extension fees | $ 3,125 |
Long Term Debt - Schedule of Lo
Long Term Debt - Schedule of Long Term Debt (Details) - USD ($) | Dec. 31, 2020 | Mar. 31, 2020 |
Debt Disclosure [Abstract] | ||
Credit facility | $ 1,100,000 | $ 795,000 |
Unamortized debt issuance costs | (28,183) | (37,577) |
Total long-term debt | $ 1,071,817 | $ 757,423 |
Long Term Debt - Summary of Lin
Long Term Debt - Summary of Line of Credit Activity (Details) | 9 Months Ended |
Dec. 31, 2020USD ($) | |
Debt Disclosure [Abstract] | |
Balance at April 1, 2020: | $ 795,000 |
Borrowings | 680,000 |
Repayments | (375,000) |
Balance at December 31, 2020: | $ 1,100,000 |
Paycheck Protection Program (_2
Paycheck Protection Program (PPP) Loan (Details Narrative) - USD ($) | Nov. 25, 2020 | May 05, 2020 | Dec. 31, 2020 | Dec. 31, 2019 |
PPP fund received | $ 68,600 | |||
Loan term | 2 years | |||
Debt maturity date | May 5, 2022 | |||
Annual interest rate | 1.00% | |||
Debt description | The loan was a two-year loan with a maturity date of May 5, 2022 an annual interest rate of 1% payable monthly with the first six monthly payments deferred. | |||
Proceeds from PPP loan | $ 68,574 | |||
Accrued interest expense | $ 383 | |||
CARES Act [Member] | ||||
Loan forgiveness amount | $ 68,957 |
Leases (Details Narrative)
Leases (Details Narrative) | 1 Months Ended | 9 Months Ended | |
Jun. 30, 2020 | Dec. 31, 2020USD ($)ft² | Dec. 31, 2019USD ($) | |
Area of lease | ft² | 4,160 | ||
Lease term | 36 months | ||
Lease expiration date | May 31, 2021 | ||
Lease term extension, description | In June 2020, in exchange for a reduction in rent for the months of June and July 2020, the Company agreed to a 2-month extension to its current lease agreement at the regular monthly rate extending its current lease expiration date to July 2021. | ||
Incremental borrowing interest percentage | 6.00% | ||
Net cash paid for operating lease | $ | $ 34,121 | $ 35,300 | |
Sublease income | $ | $ 14,315 | $ 13,167 | |
Shareholder [Member] | |||
Area of lease | ft² | 1,021 |
Leases - Schedule of Operating
Leases - Schedule of Operating Lease Assets and Liabilities (Details) - USD ($) | Dec. 31, 2020 | Mar. 31, 2020 |
Leases [Abstract] | ||
Operating lease right-of-use asset, beginning balance | $ 76,130 | |
Current period amortization | (48,503) | |
Lease amendment | (1,622) | |
Lease extension | 10,982 | |
Total operating lease right-of-use asset, ending balance | 36,987 | $ 76,130 |
Operating lease liability, current | 38,438 | 65,721 |
Operating lease liability, long term | $ 10,982 | |
Total lease liabilities | $ 38,438 |
Leases - Schedule of Future Min
Leases - Schedule of Future Minimum Lease Payments (Details) - USD ($) | Dec. 31, 2020 | Mar. 31, 2020 |
Leases [Abstract] | ||
Fiscal Year Ended March 31, 2021 | $ 16,473 | |
Fiscal Year Ended March 31, 2022 | 21,965 | |
Total lease payments | 38,438 | |
Less: imputed interest | ||
Operating lease liability | 38,438 | |
Less: operating lease liability, current | (38,438) | $ (65,721) |
Operating lease liability, long term | $ 10,982 |
Derivative Financial Instrume_3
Derivative Financial Instruments - Summary of Realized and Unrealized Losses On Derivative Contracts (Details) | Dec. 31, 2020USD ($) |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Realized loss on oil price hedging contracts | $ (19,200) |
Unrealized gain (loss) on oil price hedging contracts | |
Net realized and unrealized loss on derivative contracts | $ (19,200) |
Income Taxes (Details Narrative
Income Taxes (Details Narrative) | Dec. 31, 2020USD ($) |
Income Tax Disclosure [Abstract] | |
Deferred tax asset, net | $ 1,312,129 |
Valuation allowance | $ 1,312,129 |
Related Party Transactions (Det
Related Party Transactions (Details Narrative) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | |
Related Party Transactions [Abstract] | ||||
Total billed to and reimbursed expenses | $ 9,122 | $ 12,289 | $ 27,443 | $ 32,232 |
Due to related party | $ 4,045 | $ 3,981 | $ 11,694 | $ 11,900 |
Income (Loss) Per Common Shar_2
Income (Loss) Per Common Share (Details Narrative) - $ / shares | 3 Months Ended | 9 Months Ended |
Dec. 31, 2019 | Dec. 31, 2020 | |
Income (loss) per common share: | ||
Anti-diluted excluding common shares | 139,800 | |
Weighted average exercise price | $ 6.12 |
Income (Loss) Per Common Shar_3
Income (Loss) Per Common Share - Schedule of Reconciliation of Basic and Diluted Net Income (Loss) Per Share (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income (loss) per common share: | ||||
Net income (loss) | $ 80,497 | $ 35,196 | $ (261,143) | $ (101,777) |
Shares outstanding: Weighted avg. shares outstanding - basic | 2,051,081 | 2,040,166 | 2,044,054 | 2,040,166 |
Shares outstanding: Effect of the assumed exercise of dilutive stock options | $ 3,207 | |||
Shares outstanding: Weighted avg. shares outstanding - dilutive | 2,054,288 | 2,040,166 | 2,044,054 | 2,040,166 |
Income (loss) per common share: Basic | $ 0.04 | $ 0.02 | $ (0.13) | $ (0.05) |
Income (loss) per common share: Diluted | $ 0.04 | $ 0.02 | $ (0.13) | $ (0.05) |