Mexco Energy (MXC) 10-Q 10 Feb 23 2023 Q3 Quarterly report Financial data

Cover

Cover - shares	9 Months Ended
	Dec. 31, 2022	Feb. 10, 2023
Cover [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Quarterly Report	true
Document Transition Report	false
Document Period End Date	Dec. 31, 2022
Document Fiscal Period Focus	Q3
Document Fiscal Year Focus	2023
Current Fiscal Year End Date	--03-31
Entity File Number	1-31785
Entity Registrant Name	MEXCO ENERGY CORPORATION
Entity Central Index Key	0000066418
Entity Tax Identification Number	84-0627918
Entity Incorporation, State or Country Code	CO
Entity Address, Address Line One	415 West Wall Street
Entity Address, Address Line Two	Suite 475
Entity Address, City or Town	Midland
Entity Address, State or Province	TX
Entity Address, Postal Zip Code	79701
City Area Code	(432)
Local Phone Number	682-1119
Title of 12(b) Security	Common Stock, par value $0.50 per share
Trading Symbol	MXC
Security Exchange Name	NYSEAMER
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		2,142,000

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($)	Dec. 31, 2022	Mar. 31, 2022
Current assets
Cash and cash equivalents	$ 631,036	$ 1,370,766
Accounts receivable:
Oil and natural gas sales	2,048,695	1,310,137
Prepaid costs and expenses	21,387	52,636
Prepaid drilling	11,138
Other	3,132
Total current assets	2,715,388	2,733,539
Property and equipment, at cost
Oil and gas properties, using the full cost method	45,164,341	40,373,741
Other	121,926	120,208
Accumulated depreciation, depletion and amortization	(31,629,063)	(30,361,047)
Property and equipment, net	13,657,204	10,132,902
Investment – cost basis	500,000	275,000
Operating lease, right-of-use asset	89,394	129,923
Other noncurrent assets		13,156
Total assets	16,961,986	13,284,520
Current liabilities
Accounts payable and accrued expenses	191,233	209,469
Operating lease liability, current	55,841	54,294
Total current liabilities	247,074	263,763
Long-term liabilities
Operating lease liability, long-term	33,553	75,629
Asset retirement obligations	721,489	720,512
Total long-term liabilities	755,042	796,141
Total liabilities	1,002,116	1,059,904
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; 2,221,416 and 2,216,416 shares issued;  2,142,000 and 2,149,416 shares outstanding as of December 31, 2022 and March 31, 2022, respectively	1,110,708	1,108,208
Additional paid-in capital	8,279,823	8,133,982
Retained earnings	7,083,600	3,328,427
Treasury stock, at cost (79,416 and 67,000 shares, respectively)	(514,261)	(346,001)
Total stockholders’ equity	15,959,870	12,224,616
Total liabilities and stockholders’ equity	$ 16,961,986	$ 13,284,520

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - $ / shares	Dec. 31, 2022	Mar. 31, 2022
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	0	0
Common stock, par value	$ 0.50	$ 0.50
Common stock, shares authorized	40,000,000	40,000,000
Common stock, shares issued	2,221,416	2,216,416
Common stock, shares outstanding	2,142,000	2,149,416
Treasury stock, shares	79,416	67,000

Consolidated Statements of Oper

Consolidated Statements of Operations (Unaudited) - USD ($)	3 Months Ended		9 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2022	Dec. 31, 2021
Operating revenue:
Total operating revenues	$ 2,581,210	$ 1,595,344	$ 7,355,975	$ 4,413,023
Operating expenses:
Production	478,670	291,068	1,308,143	903,643
Accretion of asset retirement obligation	7,553	7,327	22,902	21,630
Depreciation, depletion, and amortization	496,509	268,018	1,268,016	812,398
General and administrative	288,536	239,767	876,735	739,469
Total operating expenses	1,271,268	806,180	3,475,796	2,477,140
Operating income	1,309,942	789,164	3,880,179	1,935,883
Other income (expenses):
Interest income	59	55	152	126
Interest expense	(3,230)	(3,132)	(9,922)	(23,381)
Net other expense	(3,171)	(3,077)	(9,770)	(23,255)
Net income before income taxes	1,306,771	786,087	3,870,409	1,912,628
State income tax expense	61,986	32,785	115,236	55,492
Net income	$ 1,244,785	$ 753,302	$ 3,755,173	$ 1,857,136
Income per common share:
Basic:	$ 0.58	$ 0.36	$ 1.75	$ 0.89
Diluted:	$ 0.56	$ 0.35	$ 1.70	$ 0.89
Weighted average common shares outstanding:
Basic:	2,147,750	2,120,912	2,148,859	2,096,433
Diluted:	2,205,706	2,176,240	2,213,652	2,146,717
Oil Sales [Member]
Operating revenue:
Total operating revenues	$ 1,750,539	$ 1,073,078	$ 4,707,735	$ 3,193,315
Natural Gas Sales [Member]
Operating revenue:
Total operating revenues	735,478	500,906	2,476,290	1,177,405
Other [Member]
Operating revenue:
Total operating revenues	$ 95,193	$ 21,360	$ 171,950	$ 42,303

Consolidated Statements of Chan

Consolidated Statements of Changes in Stockholders' Equity (Unaudited) - USD ($)	Common Stock [Member]	Additional Paid-in Capital [Member]	Retained Earnings [Member]	Treasury Stock [Member]	Total
Beginning balance, value at Mar. 31, 2021	$ 1,071,833	$ 7,624,214	$ 473,361	$ (346,001)	$ 8,823,407
Net income			395,006		395,006
Stock based compensation		13,865			13,865
Issuance of stock through options exercised	2,500	31,500			34,000
Ending balance, value at Jun. 30, 2021	1,074,333	7,669,579	868,367	(346,001)	9,266,278
Beginning balance, value at Mar. 31, 2021	1,071,833	7,624,214	473,361	(346,001)	8,823,407
Net income					1,857,136
Ending balance, value at Dec. 31, 2021	1,094,333	7,959,357	2,330,497	(346,001)	11,038,186
Beginning balance, value at Jun. 30, 2021	1,074,333	7,669,579	868,367	(346,001)	9,266,278
Net income			708,828		708,828
Stock based compensation		22,568			22,568
Issuance of stock through options exercised	11,450	140,282			151,732
Ending balance, value at Sep. 30, 2021	1,085,783	7,832,429	1,577,195	(346,001)	10,149,406
Net income			753,302		753,302
Stock based compensation		25,570			25,570
Issuance of stock through options exercised	8,550	101,358			109,908
Ending balance, value at Dec. 31, 2021	1,094,333	7,959,357	2,330,497	(346,001)	11,038,186
Beginning balance, value at Mar. 31, 2022	1,108,208	8,133,982	3,328,427	(346,001)	$ 12,224,616
Beginning balance, shares at Mar. 31, 2022					2,216,416
Beginning balance, held in treasury, shares at Mar. 31, 2022					(67,000)
Net income			1,298,672		$ 1,298,672
Stock based compensation		25,571			25,571
Ending balance, value at Jun. 30, 2022	1,108,208	8,159,553	4,627,099	(346,001)	13,548,859
Beginning balance, value at Mar. 31, 2022	1,108,208	8,133,982	3,328,427	(346,001)	$ 12,224,616
Beginning balance, shares at Mar. 31, 2022					2,216,416
Beginning balance, held in treasury, shares at Mar. 31, 2022					(67,000)
Net income					$ 3,755,173
Common stock shares, issued					5,000
Common stock shares, held in treasury, Acquisitions, shares					(12,416)
Ending balance, value at Dec. 31, 2022	1,110,708	8,279,823	7,083,600	(514,261)	$ 15,959,870
Ending balance, shares at Dec. 31, 2022					2,221,416
Ending balance, held in treasury, shares at Dec. 31, 2022					(79,416)
Common stock shares, outstanding at Dec. 31, 2022					2,142,000
Beginning balance, value at Jun. 30, 2022	1,108,208	8,159,553	4,627,099	(346,001)	$ 13,548,859
Net income			1,211,716		1,211,716
Stock based compensation		34,431			34,431
Profit from purchase of stock by insider		30,179			30,179
Ending balance, value at Sep. 30, 2022	1,108,208	8,224,163	5,838,815	(346,001)	14,825,185
Net income			1,244,785		1,244,785
Stock based compensation		41,460			41,460
Issuance of stock through options exercised	2,500	14,200			16,700
Purchase of stock				(168,260)	(168,260)
Ending balance, value at Dec. 31, 2022	$ 1,110,708	$ 8,279,823	$ 7,083,600	$ (514,261)	$ 15,959,870
Ending balance, shares at Dec. 31, 2022					2,221,416
Ending balance, held in treasury, shares at Dec. 31, 2022					(79,416)
Common stock shares, outstanding at Dec. 31, 2022					2,142,000

Consolidated Statements of Cash

Consolidated Statements of Cash Flows (Unaudited) - USD ($)	9 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Cash flows from operating activities:
Net income	$ 3,755,173	$ 1,857,136
Adjustments to reconcile net income to net cash provided by operating activities:
Stock-based compensation	101,462	62,003
Depreciation, depletion and amortization	1,268,016	812,398
Accretion of asset retirement obligations	22,902	21,630
Amortization of debt issuance costs	9,394	9,394
Changes in operating assets and liabilities:
Increase in accounts receivable	(738,558)	(98,901)
Decrease in right-of-use asset	40,529	42,687
Decrease in prepaid expenses	31,249	26,736
(Decrease) increase in accounts payable and accrued expenses	(81,236)	42,034
Settlement of asset retirement obligations	(17,482)	(2,741)
Decrease in operating lease liability	(40,529)	(43,790)
Net cash provided by operating activities	4,350,920	2,728,586
Cash flows from investing activities:
Additions to oil and gas properties	(4,760,880)	(1,213,618)
Additions to other property and equipment	(1,718)
Drilling refunds	18,329	229,800
Investment – cost basis	(225,000)	(50,000)
Proceeds from sale of oil and gas properties and equipment		11,969
Net cash used in investing activities	(4,969,269)	(1,021,849)
Cash flows from financing activities:
Proceeds from exercise of stock options	16,700	295,640
Profits from purchase of stock by insider	30,179
Proceeds from long-term debt	675,000	275,000
Reduction of long-term debt	(675,000)	(1,455,000)
Acquisition of treasury stock	(168,260)
Net cash used in financing activities	(121,381)	(884,360)
Net (decrease) increase in cash and cash equivalents	(739,730)	822,377
Cash and cash equivalents at beginning of period	1,370,766	57,813
Cash and cash equivalents at end of period	631,036	880,190
Supplemental disclosure of cash flow information:
Cash paid for interest	528	14,834
Non-cash investing and financing activities:
Asset retirement obligations	21,554	12,499
Operating lease – right of use asset and associated liabilities		$ 165,007

Nature of Operations

Nature of Operations	9 Months Ended
	Dec. 31, 2022
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.

Basis of Presentation and Signi

Basis of Presentation and Significant Accounting Policies	9 Months Ended
	Dec. 31, 2022
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 The Company accounts for investments of less than 3% of any limited liability companies at cost Reclassifications

Asset Retirement Obligations

Asset Retirement Obligations	9 Months Ended
	Dec. 31, 2022
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 2022: Schedule of Rollforward of Asset Retirement Obligations Carrying amount of asset retirement obligations as of April 1, 2022 $ 735,512 Liabilities incurred 21,554 Liabilities settled (43,479 ) Accretion expense 22,902 Carrying amount of asset retirement obligations as of December 31, 2022 736,489 Less: Current portion 15,000 Non-Current asset retirement obligation $ 721,489

Stock-based Compensation

Stock-based Compensation	9 Months Ended
	Dec. 31, 2022
Share-Based Payment Arrangement [Abstract]
Stock-based Compensation	4. Stock-based Compensation The Company recognized stock-based compensation expense of $ 41,460 25,570 101,462 62,003 498,285 2.63 During the nine months ended December 31, 2022, the Compensation Committee of the Board of Directors approved and the Company granted 31,000 18.05 385,640 31,000 8.51 187,550 ten years four years Included in the following table is a summary of the grant-date fair value of stock options granted and the related assumptions used in the Binomial models for stock options granted during the nine months ended December 31, 2022 and 2021. All such amounts represent the weighted average amounts. Schedule of Grant-date Fair Value of Stock Options Granted and Assumptions Used Binominal Models NIne Months Ended December 31 2022 2021 Grant-date fair value $ 12.44 $ 6.05 Volatility factor 57.3 % 65.38 % Dividend yield - - Risk-free interest rate 3.15 % 0.92 % Expected term (in years) 6.25 6.25 The following table is a summary of activity of stock options for the nine months ended December 31, 2021: Summary of Activity of Stock Options Number of Shares Weighted Average Exercise Price Weighted Average Remaining Contract Life in Years Intrinsic Value Outstanding at April 1, 2022 114,250 $ 5.51 7.40 $ 1,221,670 Granted 31,000 18.05 Exercised (5,000 ) 3.34 Forfeited or Expired - - Outstanding at December 31, 2022 140,250 $ 8.36 7.29 $ 578,290 Vested at December 31, 2022 65,500 $ 5.28 5.76 $ 471,288 Exercisable at December 31, 2022 65,500 $ 5.28 5.76 $ 471,288 During the nine months ended December 31, 2022, stock options covering 5,000 47,575 16,700 45,000 241,226 295,640 There were no Outstanding options at December 31, 2022 expire between August 2024 August 2032 3.34 18.05

Long Term Debt

Long Term Debt	9 Months Ended
	Dec. 31, 2022
Debt Disclosure [Abstract]
Long Term Debt	5. Long Term Debt On December 28, 2018, the Company entered into a loan agreement (the “Agreement”) with West Texas National Bank (“WTNB”), which originally provided for a credit facility of $ 1,000,000 December 28, 2021 On February 28, 2020, the Agreement was amended to increase the credit facility to $ 2,500,000 March 28, 2023 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% the Company will pay an unused commitment fee in an amount equal to one-half of one percent ( 0.5 1,500,000 No principal payments are anticipated to be required through the maturity date of the credit facility, March 28, 2023 .5 5,000 34,532 .1 2,500 3,125 12,266 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. 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. There was no balance outstanding on the line of credit as of December 31, 2022. The following table is a summary of activity on the WTNB line of credit for the nine months ended December 31, 2022: Summary of Line of Credit Activity Principal Balance at April 1, 2022: $ - Borrowings 675,000 Repayments (675,000 ) Balance at December 31, 2022: $ -

Leases

Leases	9 Months Ended
	Dec. 31, 2022
Leases
Leases	6. Leases The Company leases approximately 4,160 1,112 36 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 agreed to extend its current lease at a flat (unescalated) rate for 36 months. July 31, 2024 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 3.75% The balance sheets classification of lease assets and liabilities was as follows: Schedule of Operating Lease Assets and Liabilities December 31, 2022 Assets Operating lease right-of-use asset, beginning balance $ 129,923 Current period amortization (40,529 ) Total operating lease right-of-use asset $ 89,394 Liabilities Operating lease liability, current $ 55,841 Operating lease liability, long term 33,553 Total lease liabilities $ 89,394 Future minimum lease payments as of December 31, 2022 under non-cancellable operating leases are as follows: Schedule of Future Minimum Lease Payments Lease Obligation Fiscal Year Ended March 31, 2023 14,560 Fiscal Year Ended March 31, 2024 58,240 Fiscal Year Ended March 31, 2025 19,413 Total lease payments $ 92,213 Less: imputed interest (2,819 ) Operating lease liability 89,394 Less: operating lease liability, current (55,841 ) Operating lease liability, long term $ 33,553 Net cash paid for our operating lease for the nine months ended December 31, 2022 and 2021 was $ 32,001 31,570 11,679 14,662

Income Taxes

Income Taxes	9 Months Ended
	Dec. 31, 2022
Income Tax Disclosure [Abstract]
Income Taxes	7. 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, 2022. Our deferred tax asset for federal income tax purposes is $ 202,543 202,543

Related Party Transactions

Related Party Transactions	9 Months Ended
	Dec. 31, 2022
Related Party Transactions [Abstract]
Related Party Transactions	8. 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, 2022 and 2021 was $ 11,598 12,276 35,333 35,332 3,893 11,679 11,882

Income Per Common Share

Income Per Common Share	9 Months Ended
	Dec. 31, 2022
Income per common share:
Income Per Common Share	9. Income Per Common Share The following is a reconciliation of the number of shares used in the calculation of basic and diluted net income per share for the three and nine month periods ended December 31, 2022 and 2021: Schedule of Reconciliation of Basic and Diluted Net Income (loss) Per Share 2022 2021 2022 2021 Three Months Ended Nine Months Ended December 31 December 31 2022 2021 2022 2021 Net income $ 1,244,785 $ 753,302 $ 3,755,173 $ 1,857,136 Shares outstanding: Weighted avg. shares outstanding – basic 2,147,750 2,120,912 2,148,859 2,096,433 Effect of assumed exercise of dilutive stock options 57,956 55,328 64,793 50,284 Weighted avg. shares outstanding – dilutive 2,205,706 2,176,240 2,213,652 2,146,717 Income per common share: Basic $ 0.58 $ 0.36 $ 1.75 $ 0.89 Diluted $ 0.56 $ 0.35 $ 1.70 $ 0.89 For the three months ended December 31, 2022, 31,000 18.05 For the three and nine months ended December 31, 2021, 31,000 8.51

Stockholders_ Equity

Stockholders’ Equity	9 Months Ended
	Dec. 31, 2022
Equity [Abstract]
Stockholders’ Equity	10. Stockholders’ Equity In June 2022, the Board of Directors authorized the use of up to $ 250,000 During the three months ended December 31, 2022, the Company repurchased 12,416 168,260 no 1,300 16,359 On September 6, 2022, one of the Company’s directors paid the Company $ 30,179

Subsequent Events

Subsequent Events	9 Months Ended
	Dec. 31, 2022
Subsequent Events [Abstract]
Subsequent Events	11. 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, 2022
Accounting Policies [Abstract]
Principles of Consolidation	Principles of Consolidation
Estimates and Assumptions	Estimates and Assumptions
Interim Financial Statements	Interim Financial Statements
Investments	Investments The Company accounts for investments of less than 3% of any limited liability companies at cost
Reclassifications	Reclassifications

Asset Retirement Obligations (T

Asset Retirement Obligations (Tables)	9 Months Ended
	Dec. 31, 2022
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 2022: Schedule of Rollforward of Asset Retirement Obligations Carrying amount of asset retirement obligations as of April 1, 2022 $ 735,512 Liabilities incurred 21,554 Liabilities settled (43,479 ) Accretion expense 22,902 Carrying amount of asset retirement obligations as of December 31, 2022 736,489 Less: Current portion 15,000 Non-Current asset retirement obligation $ 721,489

Stock-based Compensation (Table

Stock-based Compensation (Tables)	9 Months Ended
	Dec. 31, 2022
Share-Based Payment Arrangement [Abstract]
Schedule of Grant-date Fair Value of Stock Options Granted and Assumptions Used Binominal Models	Included in the following table is a summary of the grant-date fair value of stock options granted and the related assumptions used in the Binomial models for stock options granted during the nine months ended December 31, 2022 and 2021. All such amounts represent the weighted average amounts. Schedule of Grant-date Fair Value of Stock Options Granted and Assumptions Used Binominal Models NIne Months Ended December 31 2022 2021 Grant-date fair value $ 12.44 $ 6.05 Volatility factor 57.3 % 65.38 % Dividend yield - - Risk-free interest rate 3.15 % 0.92 % Expected term (in years) 6.25 6.25
Summary of Activity of Stock Options	The following table is a summary of activity of stock options for the nine months ended December 31, 2021: Summary of Activity of Stock Options Number of Shares Weighted Average Exercise Price Weighted Average Remaining Contract Life in Years Intrinsic Value Outstanding at April 1, 2022 114,250 $ 5.51 7.40 $ 1,221,670 Granted 31,000 18.05 Exercised (5,000 ) 3.34 Forfeited or Expired - - Outstanding at December 31, 2022 140,250 $ 8.36 7.29 $ 578,290 Vested at December 31, 2022 65,500 $ 5.28 5.76 $ 471,288 Exercisable at December 31, 2022 65,500 $ 5.28 5.76 $ 471,288

Long Term Debt (Tables)

Long Term Debt (Tables)	9 Months Ended
	Dec. 31, 2022
Debt Disclosure [Abstract]
Summary of Line of Credit Activity	Summary of Line of Credit Activity Principal Balance at April 1, 2022: $ - Borrowings 675,000 Repayments (675,000 ) Balance at December 31, 2022: $ -

Leases (Tables)

Leases (Tables)	9 Months Ended
	Dec. 31, 2022
Leases
Schedule of Operating Lease Assets and Liabilities	The balance sheets classification of lease assets and liabilities was as follows: Schedule of Operating Lease Assets and Liabilities December 31, 2022 Assets Operating lease right-of-use asset, beginning balance $ 129,923 Current period amortization (40,529 ) Total operating lease right-of-use asset $ 89,394 Liabilities Operating lease liability, current $ 55,841 Operating lease liability, long term 33,553 Total lease liabilities $ 89,394
Schedule of Future Minimum Lease Payments	Future minimum lease payments as of December 31, 2022 under non-cancellable operating leases are as follows: Schedule of Future Minimum Lease Payments Lease Obligation Fiscal Year Ended March 31, 2023 14,560 Fiscal Year Ended March 31, 2024 58,240 Fiscal Year Ended March 31, 2025 19,413 Total lease payments $ 92,213 Less: imputed interest (2,819 ) Operating lease liability 89,394 Less: operating lease liability, current (55,841 ) Operating lease liability, long term $ 33,553

Income Per Common Share (Tables

Income Per Common Share (Tables)	9 Months Ended
	Dec. 31, 2022
Income 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 per share for the three and nine month periods ended December 31, 2022 and 2021: Schedule of Reconciliation of Basic and Diluted Net Income (loss) Per Share 2022 2021 2022 2021 Three Months Ended Nine Months Ended December 31 December 31 2022 2021 2022 2021 Net income $ 1,244,785 $ 753,302 $ 3,755,173 $ 1,857,136 Shares outstanding: Weighted avg. shares outstanding – basic 2,147,750 2,120,912 2,148,859 2,096,433 Effect of assumed exercise of dilutive stock options 57,956 55,328 64,793 50,284 Weighted avg. shares outstanding – dilutive 2,205,706 2,176,240 2,213,652 2,146,717 Income per common share: Basic $ 0.58 $ 0.36 $ 1.75 $ 0.89 Diluted $ 0.56 $ 0.35 $ 1.70 $ 0.89

Basis of Presentation and Sig_3

Basis of Presentation and Significant Accounting Policies (Details Narrative)	9 Months Ended
	Dec. 31, 2022
Accounting Policies [Abstract]
Cost method investments, percentage description	The Company accounts for investments of less than 3% of any limited liability companies at cost

Schedule of Rollforward of Asse

Schedule of Rollforward of Asset Retirement Obligations (Details) - USD ($)	3 Months Ended		9 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2022	Dec. 31, 2021	Mar. 31, 2022
Asset Retirement Obligation Disclosure [Abstract]
Asset Retirement Obligation, Beginning Balance			$ 735,512
Asset Retirement Obligation, Liabilities Incurred			21,554
Asset Retirement Obligation, Liabilities Settled			(43,479)
Asset Retirement Obligation, Accretion Expense	$ 7,553	$ 7,327	22,902	$ 21,630
Asset Retirement Obligation, Ending Balance	736,489		736,489
Asset Retirement Obligation, Current	15,000		15,000
Asset Retirement Obligations, Noncurrent	$ 721,489		$ 721,489		$ 720,512

Schedule of Grant-date Fair Val

Schedule of Grant-date Fair Value of Stock Options Granted and Assumptions Used Binominal Models (Details) - $ / shares	9 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Share-Based Payment Arrangement [Abstract]
Grant-date fair value	$ 12.44	$ 6.05
Volatility factor	57.30%	65.38%
Dividend yield
Risk-free interest rate	3.15%	0.92%
Expected term (in years)	6 years 3 months	6 years 3 months

Summary of Activity of Stock Op

Summary of Activity of Stock Options (Details) - USD ($)	9 Months Ended		12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Mar. 31, 2022
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Number of Shares, Exercised	(5,000)	(45,000)
Number of Shares, Forfeited or Expired	0	0
Share-Based Payment Arrangement, Option [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Number of Shares, Beginning Balance	114,250
Weighted Average Exercise Price Per Share, Beginning Balance	$ 5.51
Weighted Average Remaining Contract Life in Years, Ending Balance	7 years 3 months 14 days		7 years 4 months 24 days
Intrinsic Value, Beginning Balance	$ 1,221,670
Number of Shares, Granted	31,000
Weighted Average Exercise Price Per Share, Granted	$ 18.05
Number of Shares, Exercised	(5,000)
Weighted Average Exercise Price Per Share, Exercised	$ 3.34
Number of Shares, Forfeited or Expired
Weighted Average Exercise Price Per Share, Forfeited or Expired
Number of Shares, Ending Balance	140,250		114,250
Weighted Average Exercise Price Per Share, Ending Balance	$ 8.36		$ 5.51
Intrinsic Value, Ending Balance	$ 578,290		$ 1,221,670
Number of Shares, Vested	65,500
Weighted Average Exercise Price Per Share, Vested	$ 5.28
Weighted Aggregate Average Remaining Contract Life in Years, Vested	5 years 9 months 3 days
Intrinsic Value, Vested	$ 471,288
Number of Shares, Exercisable	65,500
Weighted Average Exercise Price Per Share, Exercisable	$ 5.28
Weighted Aggregate Average Remaining Contract Life in Years, Exercisable	5 years 9 months 3 days
Intrinsic Value, Exercisable	$ 471,288

Stock-based Compensation (Detai

Stock-based Compensation (Details Narrative) - USD ($)	3 Months Ended		9 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2022	Dec. 31, 2021
Share-Based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total cost related to non-vested awards	$ 498,285		$ 498,285
Non-vested awards, weighted average period of recognition			2 years 7 months 17 days
Award vesting period			4 years
Stock option shares exercised			5,000	45,000
Stock options intrinsic value exercised			$ 47,575	$ 241,226
Proceeds from stock-based compensation including option exercise			$ 16,700	$ 295,640
Number of shares, forfeited or expired			0	0
Outstanding options exercise price, lower range			$ 3.34
Outstanding options exercise price, upper range			$ 18.05
Minimum [Member]
Share-Based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Outstanding options expiration month and year			2024-08
Maximum [Member]
Share-Based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Outstanding options expiration month and year			2032-08
Board of Directors [Member]
Share-Based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Number of shares, granted			31,000	31,000
Exercisable price per share			$ 18.05	$ 8.51
Fair value of stock option exercisable			$ 385,640	$ 187,550
Weighted average remaining contractual term exercise period			10 years
General and Administrative Expense [Member]
Share-Based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Stock based compensation expense	$ 41,460	$ 25,570	$ 101,462	$ 62,003

Summary of Line of Credit Activ

Summary of Line of Credit Activity (Details)	9 Months Ended
	Dec. 31, 2022 USD ($)
Debt Disclosure [Abstract]
Beginning balance
Borrowings	675,000
Repayments	(675,000)
Ending balance

Long Term Debt (Details Narrati

Long Term Debt (Details Narrative) - USD ($)			9 Months Ended
	Feb. 28, 2020	Dec. 28, 2018	Dec. 31, 2022
Loan Agreement [Member]
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Debt instrument covenant description			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.
Loan Agreement [Member] | West Texas National Bank [Member]
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Line of credit facility	$ 2,500,000	$ 1,000,000
Line of credit facility, maturity date	Mar. 28, 2023	Dec. 28, 2021
Line of credit, increase in borrowing base amount	$ 1,500,000
Debt instrument rate	0.50%
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. The unused commitment fee is payable quarterly in arrears on the last day of each calendar quarter
Line of credit facility, unused capacity, commitment fee percentage	0.50%
Line of credit available for borrowing			$ 1,500,000
Loan origination fee percentage	0.10%
Loan origination fee	$ 2,500
Extension fees	3,125
Legal fees	$ 12,266
Original Agreement [Member] | West Texas National Bank [Member]
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Loan origination fee percentage	0.50%
Loan origination fee	$ 5,000
Legal and recording expenses	$ 34,532

Schedule of Operating Lease Ass

Schedule of Operating Lease Assets and Liabilities (Details) - USD ($)	Dec. 31, 2022	Mar. 31, 2022
Leases
Operating lease right-of-use asset, beginning balance	$ 129,923
Current period amortization	(40,529)
Total operating lease right-of-use asset	89,394	$ 129,923
Operating lease liability, current	55,841	54,294
Operating lease liability, long term	33,553	$ 75,629
Total lease liabilities	$ 89,394

Schedule of Future Minimum Leas

Schedule of Future Minimum Lease Payments (Details) - USD ($)	Dec. 31, 2022	Mar. 31, 2022
Leases
Fiscal Year Ended March 31, 2023	$ 14,560
Fiscal Year Ended March 31, 2024	58,240
Fiscal Year Ended March 31, 2025	19,413
Total lease payments	92,213
Less: imputed interest	(2,819)
Operating lease liability	89,394
Less: operating lease liability, current	(55,841)	$ (54,294)
Operating lease liability, long term	$ 33,553	$ 75,629

Leases (Details Narrative)

Leases (Details Narrative)	1 Months Ended	9 Months Ended
	Jun. 30, 2021	Dec. 31, 2022 USD ($) ft²	Dec. 31, 2021 USD ($)
Deferred Compensation Arrangement with Individual, Excluding Share-Based Payments and Postretirement Benefits [Line Items]
Area of lease | ft²		4,160
Lease term		36 months
Lease term extension, description	the Company agreed to extend its current lease at a flat (unescalated) rate for 36 months.	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
Lease Expiration Date	Jul. 31, 2024
Incremental borrowing rate		3.75%
Net cash paid for operating lease | $		$ 32,001	$ 31,570
Sublease income | $		$ 11,679	$ 14,662
Shareholder [Member]
Deferred Compensation Arrangement with Individual, Excluding Share-Based Payments and Postretirement Benefits [Line Items]
Area of lease | ft²		1,112

Income Taxes (Details Narrative

Income Taxes (Details Narrative)	Dec. 31, 2022 USD ($)
Income Tax Disclosure [Abstract]
Deferred tax asset, net	$ 202,543
Deferred tax assets, valuation allowance	$ 202,543

Related Party Transactions (Det

Related Party Transactions (Details Narrative) - USD ($)	3 Months Ended		9 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2022	Dec. 31, 2021
Related Party Transactions [Abstract]
Total billed to and reimbursed expenses	$ 11,598	$ 12,276	$ 35,333	$ 35,332
Due to related party	$ 3,893	$ 3,893	$ 11,679	$ 11,882

Schedule of Reconciliation of B

Schedule of Reconciliation of Basic and Diluted Net Income (loss) Per Share (Details) - USD ($)	3 Months Ended						9 Months Ended
	Dec. 31, 2022	Sep. 30, 2022	Jun. 30, 2022	Dec. 31, 2021	Sep. 30, 2021	Jun. 30, 2021	Dec. 31, 2022	Dec. 31, 2021
Income per common share:
Net income	$ 1,244,785	$ 1,211,716	$ 1,298,672	$ 753,302	$ 708,828	$ 395,006	$ 3,755,173	$ 1,857,136
Weighted avg. shares outstanding – basic	2,147,750			2,120,912			2,148,859	2,096,433
Effect of assumed exercise of dilutive stock options	$ 57,956			$ 55,328			$ 64,793	$ 50,284
Weighted avg. shares outstanding – dilutive	2,205,706			2,176,240			2,213,652	2,146,717
Basic	$ 0.58			$ 0.36			$ 1.75	$ 0.89
Diluted	$ 0.56			$ 0.35			$ 1.70	$ 0.89

Income Per Common Share (Detail

Income Per Common Share (Details Narrative) - $ / shares	3 Months Ended		9 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2021
Income per common share:
Antidilutive securities excluded from computation of earnings per share	31,000	31,000	31,000
Anti-dilutive stock options have a weighted average exercise price	$ 18.05		$ 8.51

Stockholders_ Equity (Details N

Stockholders’ Equity (Details Narrative) - USD ($)		1 Months Ended	3 Months Ended		9 Months Ended
	Sep. 06, 2022	Jan. 31, 2023	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2022	Dec. 31, 2021	Jun. 30, 2022
Stock repurchased during the period, shares			12,416	0
Stock repurchased during the period, aggregate cost			$ 168,260
Profits from purchase of stock by insider					$ 30,179
Subsequent Event [Member]
Stock repurchased during the period, shares		1,300
Stock repurchased during the period, aggregate cost		$ 16,359
Director [Member]
Profits from purchase of stock by insider	$ 30,179
Maximum [Member] | Board of Directors [Member]
Stock authorized repurchased shares for treasury							$ 250,000