Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | |
Mar. 31, 2016 | Aug. 24, 2018 | |
Document And Entity Information | ||
Entity Registrant Name | GROOVE BOTANICALS INC. | |
Entity Central Index Key | 918,573 | |
Document Type | 10-K | |
Document Period End Date | Mar. 31, 2016 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --03-31 | |
Is Entity a Well-known Seasoned Issuer? | No | |
Is Entity a Voluntary Filer? | No | |
Is Entity's Reporting Status Current? | Yes | |
Entity Filer Category | Smaller Reporting Company | |
Entity Public Float | $ 0 | |
Entity Common Stock, Shares Outstanding | 26,543,062 | |
Document Fiscal Period Focus | FY | |
Document Fiscal Year Focus | 2,016 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Mar. 31, 2016 | Mar. 31, 2015 |
Current Assets: | ||
Cash and cash equivalents | $ 108,220 | $ 135,713 |
Accounts receivable, net of allowance for doubtful accounts of $28,741 and $0 | 0 | 33,344 |
Notes receivable | 0 | 11,429 |
Deposits and prepaid expenses | 0 | 368,946 |
Receivables from joint interests, net of allowance for doubtful accounts of $153,209 and $131,236 | 0 | 20,000 |
Total current assets | 108,220 | 569,432 |
Property and equipment, net | 13,592 | 18,125 |
Unproven oil & gas properties | 177,000 | 1,867,183 |
Producing oil & gas properties, net | 74,816 | 239,283 |
Intellectual property rights, net | 0 | 53,234 |
Total Assets | 373,628 | 2,747,257 |
Current Liabilities: | ||
Accounts payable and accrued liabilities | 194,691 | 433,751 |
Accrued payroll - related parties | 205,462 | 211,317 |
Dividends payable | 205,488 | 32,950 |
Accrued liabilities to joint interest | 9,965 | 10,567 |
Notes payable - related party | 20,000 | 20,000 |
Notes payable, net of discount | 149,200 | 224,300 |
Total current liabilities | 784,806 | 932,885 |
Accrued asset retirement obligation (ARO) liability | 136,642 | 124,220 |
Total Liabilities | 921,448 | 1,057,105 |
Commitments and contingencies | 0 | 0 |
Equity | ||
Preferred stock, Series A, $.10 par value, 1,000,000 shares authorized; 100 shares issued and outstanding stated at redemption value, as of March 31, 2016 and March 31, 2015, liquidation preference of $537,450 and 532,950 as of March 31, 2016 and 2015 | 10 | 10 |
Preferred stock, Series B, $.10 par value, 2,000 shares authorized; 1,983 shares issued and 1,625 shares issued and outstanding stated at redemption value as of March 31, 2016 and March 31, 2015, liquidation preference of $1,983,000 and 1,625,000 as of March 31, 2016 and 2015 | 198 | 163 |
Common stock, $.001 par value: 200,000,000 shares authorized 18,198,062 and 16,548,062 shares issued and outstanding at March 31, 2016 and March 31, 2015, respectively | 18,198 | 16,548 |
Additional paid in capital | 32,993,499 | 32,572,304 |
Accumulated deficit | (33,610,746) | (30,898,873) |
Total Stockholders (Deficit) Equity | (598,841) | 1,690,152 |
Non-controlling interest | 51,021 | 0 |
Total (Deficit) Equity | (547,820) | 1,690,152 |
Total Liabilities and Stockholders' Equity | $ 373,628 | $ 2,747,257 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) | Mar. 31, 2016 | Mar. 31, 2015 |
Allowance for doubtful accounts | $ 28,741 | $ 0 |
Allowance for doubtful accounts on receivables from joint interests | $ 153,209 | $ 131,236 |
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 200,000,000 | 200,000,000 |
Common stock, shares issued | 18,198,062 | 16,548,062 |
Common stock, shares outstanding | 18,198,062 | 16,548,062 |
Preferred stock, Series A | ||
Preferred stock, par value | $ 0.10 | $ 0.10 |
Preferred stock, shares authorized | 1,000,000 | 1,000,000 |
Preferred stock, shares issued | 100 | 100 |
Preferred stock, shares outstanding | 100 | 100 |
Preferred stock, Series B | ||
Preferred stock, par value | $ 0.10 | $ 0.10 |
Preferred stock, shares authorized | 2,000 | 2,000 |
Preferred stock, shares issued | 1,983 | 1,625 |
Preferred stock, shares outstanding | 1,983 | 1,625 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) | 12 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Income Statement [Abstract] | ||
Oil & Gas Sales | $ 52,933 | $ 110,371 |
Operating expenses: | ||
Lease operating expense, severance taxes and ARO accretion | 66,081 | 100,060 |
Selling, general and administrative expenses | 788,836 | 285,534 |
Bad debt expense | 58,741 | 0 |
Impairment expense | 1,839,941 | 0 |
Stock based compensation | 0 | 24,454 |
Depreciation, depletion, and amortization | 69,579 | 74,411 |
Total operating expenses | 2,823,178 | 484,459 |
Operating loss | (2,770,245) | (374,088) |
Other income (expense): | ||
Gain (Loss) on settlement of debt | 283,014 | 424,624 |
Gain (Loss) on conversion of dividends payable | 0 | 82,779 |
Other miscellaneous income | 0 | 10,100 |
Interest expense, net | (16,703) | (43,101) |
Total other income | 266,311 | 474,402 |
Income (Loss) before income tax | (2,503,934) | 100,314 |
Provision for income taxes | 0 | 0 |
Net (loss) Income | (2,503,934) | 100,314 |
Less net loss attributable to noncontrolling interests | 99 | 0 |
Net income (loss) attributable to the Company | (2,503,835) | 100,314 |
Preferred stock dividends | (208,038) | (175,599) |
Net income (loss) attributable to common shareholders | $ (2,711,873) | $ (75,285) |
Net loss per share - basic and diluted | $ (0.154) | $ (0.006) |
Weighted average shares outstanding - basic and diluted | 17,620,117 | 12,722,363 |
Consolidated Statement of Cash
Consolidated Statement of Cash Flows - USD ($) | 12 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Cash flows from operating activities: | ||
Net (loss) | $ (2,503,934) | $ 100,314 |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Common stock issued for services | 0 | 24,454 |
Non-cash consulting services | 433,946 | |
Provision for allowances for doubtful accounts | 58,741 | 0 |
(Gain) on extinguishment of debt | (283,014) | (424,624) |
(Gain) on the reduction of dividends payable | 0 | (82,779) |
Impairment of assets | 1,839,941 | 0 |
Stock issued for reduction of interest on notes payable | 0 | 176,959 |
Stock issued for licensing fees | 0 | 15,000 |
Depreciation, depletion, and amortization | 69,579 | 74,411 |
Depreciation and ARO liability | 2,896 | 2,896 |
Net change in operating assets and liabilities: | ||
Accounts receivable | 4,603 | 20,882 |
Accounts payable and other accrued expenses | 21,753 | (143,149) |
Due to related party | (5,855) | (6,000) |
Asset retirement obligation accretion | 12,422 | 11,293 |
Net cash (used) in operating activities | (348,922) | (230,343) |
Cash flows from investing activities: | ||
Deposit on the purchase of additional assets | 0 | 22,657 |
Purchase of property and equipment | 0 | (22,657) |
Acquisition of oil producing properties | 0 | (120,000) |
Principle payments received on notes receivable | 1,429 | 7,142 |
Net cash provided by (used in) investing activities | 1,429 | (112,858) |
Cash flows from financing activities: | ||
Proceeds from advances from related party | 0 | 0 |
Payments on notes payable | 0 | 0 |
Payments on notes payable | (10,000) | 0 |
Proceeds from notes payable | 0 | 60,000 |
Non-controlling interest stock sale | 0 | 0 |
Preferred stock B issued for cash | 330,000 | 260,000 |
Dividends paid on preferred stock | 0 | (65,000) |
Net cash provided in financing activities | 320,000 | 255,000 |
Net (decrease) in cash and cash equivalents | (27,493) | (88,201) |
Cash and cash equivalents at beginning of period | 135,713 | 223,914 |
Cash and cash equivalents at end of period | 108,220 | 135,713 |
Supplemental disclosures of cash flow information: | ||
Cash paid during the period for Interest | 8,500 | |
Cash paid during the period for Taxes | ||
Common stock issued in exchange for consulting services | 99,000 | |
Common stock issued in exchange for licenses | 15,000 | |
Common stock issued for the conversion of dividends payable | 61,600 | |
Common stock issued for conversion of note payable, accrued interest, and assumption of debt | 28,000 | 52,500 |
Gain (Loss) on extinguishment of debt | (283,014) | (424,624) |
Preferred stock issued in exchange for consulting services | 0 | 15,000 |
Preferred stock issued for conversion of notes payable, accrued interest, and assumption of debt | $ 25,000 | $ 50,000 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Equity - USD ($) | Preferred Stock Series B | Common Stock | Additional Paid-In Capital | Retained Earnings | Total |
Beginning balance at Mar. 31, 2014 | $ 130 | $ 11,658 | $ 32,024,126 | $ (30,823,588) | $ 1,212 |
Beginning balance, Shares at Mar. 31, 2014 | 1,300 | 11,658,062 | |||
Preferred shares issued in exchange for notes payable | $ 5 | 49,995 | 50,000 | ||
Preferred shares issued in exchange for notes payable, Shares | 50 | ||||
Common stock issued for consulting services | $ 200 | 13,800 | 14,000 | ||
Common stock issued for consulting services, Shares | 200,000 | ||||
Preferred Stock issued for cash | $ 26 | 259,975 | 260,001 | ||
Preferred Stock issued for cash, Shares | 260 | ||||
Preferred stock issued in exchange for consulting services | $ 2 | 14,998 | 15,000 | ||
Preferred stock issued in exchange for consulting services, Shares | 15 | ||||
Common stock issued for licenses | $ 300 | 14,700 | 15,000 | ||
Common stock issued for licenses, shares | 300,000 | ||||
Common stock issued for consulting services (b) | $ 1,700 | 83,300 | 85,000 | ||
Common stock issued for consulting services (b), Shares | 1,700,000 | ||||
Common stock issued in exchange for notes payable | $ 1,150 | 51,350 | 52,500 | ||
Common stock issued in exchange for notes payable, Shares | 1,150,000 | ||||
Common stock issued in exchange for dividends payable | $ 1,540 | 60,060 | 61,600 | ||
Common stock issued in exchange for dividends payable, shares | 1,540,000 | ||||
Preferred Dividends | (175,599) | (175,599) | |||
Net Loss | 100,314 | 100,314 | |||
Balance at Mar. 31, 2015 | $ 163 | $ 16,548 | 32,572,304 | (30,898,873) | 1,690,152 |
Balance, Shares at Mar. 31, 2015 | 1,625 | 16,548,062 | |||
Preferred shares issued in exchange for notes payable | $ 2 | 24,998 | 25,000 | ||
Preferred shares issued in exchange for notes payable, Shares | 25 | ||||
Preferred Stock issued for cash | $ 28 | 279,972 | 280,000 | ||
Preferred Stock issued for cash, Shares | 280 | ||||
Preferred stock issued for cash (AFS Holdings, Inc.) | 50,000 | 50,000 | |||
Preferred stock issued in exchange for consulting services | $ 5 | 52,995 | 53,000 | ||
Preferred stock issued in exchange for consulting services, Shares | 53 | ||||
Common stock issued to pay accounts payable | $ 650 | 25,350 | 26,000 | ||
Common stock issued to pay accounts payable, Shares | 650,000 | ||||
Common stock issued for consulting services (b) | $ 300 | 11,700 | 12,000 | ||
Common stock issued for consulting services (b), Shares | 300,000 | ||||
Common stock issued in exchange for notes payable | $ 700 | 27,300 | 28,000 | ||
Common stock issued in exchange for notes payable, Shares | 700,000 | ||||
Non-controlling interest | (1,120) | 0 | |||
Preferred Dividends | (208,038) | (208,038) | |||
Net Loss | (2,503,835) | (2,503,934) | |||
Balance at Mar. 31, 2016 | $ 198 | $ 18,198 | $ 32,993,499 | $ (33,610,746) | $ (547,820) |
Balance, Shares at Mar. 31, 2016 | 1,983 | 18,198,062 |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Mar. 31, 2016 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Nature of Operations Groove Botanicals, Inc. (the "Company") was originally incorporated in Colorado in April 1991 under the name Snow Runner (USA), Inc. The Company was the general partner of Snow Runner (USA) Ltd.; a Colorado limited partnership to sell proprietary snow skates under the name "Sled Dogs" which was dissolved in August 1992. In late 1993, the Company relocated its operations to Minnesota and in January 1994 changed our name to Snow Runner, Inc. In November 1994 we changed our name to the Sled Dogs Company. On November 5, 1997, we filed for protection under Chapter 11 of the U.S. Bankruptcy Code. In September 1998, we emerged from protection of Chapter 11 of the U.S. Bankruptcy Code. In May, 1999, we changed our state of domicile to Nevada and our name to XDOGS.COM, Inc. On July 22, 2005, the Board of Directors and a majority of the Company's shareholders approved an amendment to our Articles of Incorporation to change the Company's name to Avalon Oil & Gas, Inc., and to increase the authorized number of shares of our common stock from 200,000,000 shares to 1,000,000,000 shares par value of $0.001, and engage in the acquisition of producing oil and gas properties. On November 16, 2011, a majority of the Company's shareholders approved an amendment to our Articles of Incorporation to increase the authorized number of shares of our common stock from 1,000,000,000 shares to 3,000,000,000 shares par value of $0.001. On June 4, 2012 the Board of Directors approved an amendment to our Articles of Incorporation to a reverse split of the issued and outstanding shares of Common Stock of the Corporation (“Shares”) such that each holder of Shares as of the record date of June 4, 2012 shall receive one (1) post-split Share on the effective date of June 4, 2012 for each three hundred (300) Shares owned. The reverse split was effective on July 23, 2012. On September 28, 2012, we held a special meeting of Avalon’s shareholders and approved an amendment to the Company’s Articles of Incorporation such that the Company would be authorized to issue up to 200,000,000 shares of common stock. We filed an amendment with the Nevada Secretary of State on April 10, 2013, to increase our authorized shares to 200,000,000. On March 21, 2018 the Board of Directors and a majority of the Company's shareholders approved an amendment to our Articles of Incorporation to change the Company's name to Groove Botanicals, Inc. We filed an amendment to our Articles of Incorporation with the State of Nevada on May 18, 2018. The Company is currently in the process of raising funds to manufacture and sell our CBD skincare products. On September 22, 2007 the Company entered into an agreement with respect to its purchase of a 75.6% interest in Oiltek, Inc. (Oiltek) for $50,000 and the right of Oiltek to market Avalon's intellectual property. On March 19, 2014, the Company formed Weyer Partners, LLC, (“Weyer”) a one hundred percent (100%) wholly owned Minnesota Corporation. Weyer Partners, LLC, was formed to operate oil and gas properties in Oklahoma and Texas. Weyer is consolidated in these financial statements. On May 9, 2014, the Company formed AFS Holdings, Inc., (“AFS”) a one hundred percent (100%) wholly owned Nevada Corporation. AFS Holding, Inc., was formed to leverage the Company’s relationship with IP TechEx, and market technology licensed from IP TechEx. AFS is consolidated in these financial statements. Principles of consolidation The consolidated financial statements include the accounts of the Company and the Company’s subsidiary’s Oiltek, Inc., AFS Holdings, Inc., and Weyer Partners, LLC. All significant inter-company items have been eliminated in consolidation. Going Concern The Company has minimal revenues from our remaining oil and gas assets. We are in need of additional cash resources to maintain our operations. As of March 31, 2016, the Company had a working capital deficit of $676,586, had incurred losses since inception of $33,610,746, and have not yet received any revenue from the sale our CBD skincare products. These factors raise substantial doubt about its ability to continue as a going concern. The Company’s ability to continue as a going concern is dependent on its ability to raise additional capital or obtain necessary debt financing. The Company is presently dependent on its controlling shareholder to provide us funding for its daily operation and expenses, including professional fee and fees charged by regulators, although he is under no obligation to do so. The Company intends to meet the cash requirements for the next 12 months from the issuance date of this report through a combination of debt and equity financing by way of private placements, friends, family and business associates. The Company currently did not have any arrangements in place to complete any private placement financings and there is no assurance that the Company will be successful in completing any such financings on terms that will be acceptable to it. If we do not have sufficient working capital to pay our operating costs for the next 12 months, we will require additional funds to pay our legal, accounting and other fees associated with our Company and our filing obligations under United States federal securities laws, as well as to pay our other accounts payable generated in the ordinary course of our business. Once these costs are accounted for, we will focus on the following the manufacture and sale of our CBD skincare products. Any failure to raise money will have the effect of delaying the timeframes in the business plan as set forth above, and the Company may have to push back the dates of such activities. The financial statements have been prepared on a going concern basis which assumes the Company will be able to realize its assets and discharge its liabilities in the normal course of business for the foreseeable future. The Company has incurred losses and further losses are anticipated as a result of the development of business which raises substantial doubt about the Company’s ability to continue as a going concern within the next twelve months from the issuance date of this report. The ability to continue as a going concern is dependent upon the Company generating profitable operations in the future and/or obtaining financing necessary to meet the Company’s obligations and repay its liabilities arising from normal business operations when they come due. Management intends to finance operating costs over the next twelve months with existing cash on hand and loans from directors and/or private placement of the Company’s common stock. Our cash and cash equivalents were $108,220 on March 31, 2016, compared to $135,713 on March 31, 2015. We met our liquidity needs through the issuance of our common stock, preferred stock, and notes payable for cash and from the revenue derived from our oil and gas operations. We need to raise additional capital during the fiscal year, but currently have not acquired sufficient additional funding. Our ability to continue operations as a going concern is highly dependent upon our ability to obtain immediate additional financing, or generate revenues from the sale of our CBD skincare products, and to achieve profitability, none of which can be guaranteed. Unless additional funding is obtained, it is highly unlikely that we can continue to operate. There is no assurance that even with adequate financing or combined operations, we will generate revenues and be profitable. Ultimately, our success is dependent upon our ability to generate revenues from the sale of our CBD skin care products. The March 31, 2016, consolidated financial statements have been prepared assuming the Company will continue as a going concern. However, the Company has incurred a loss of $33,610,746 from inception through March 31, 2016, and has negative working capital deficiency of $676,586 and stockholders’ deficit of $548,841 as of March 31, 2016. These conditions raise substantial doubt about the ability of the Company to continue as a going concern. The Company currently has minimal revenue generating operations and expects to incur substantial operating expenses in order to expand its business. As a result, the Company expects to incur operating losses for the foreseeable future. The Company will continue to seek equity and debt financing to meet our operating losses. The accompanying consolidated financial statements do not include any adjustments that might become necessary should the Company be unable to continue as a going concern. Use of Estimates The preparation of financial statements in conformity with generally accepted accounting principles generally accepted in the United States of America requires us to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results could differ from those estimates and assumptions. Basis of Accounting The Company's financial statements are prepared using the accrual method of accounting. Revenues are recognized when earned and expenses when incurred. Cash and Cash Equivalents Cash and cash equivalents consist primarily of cash on deposit. The Company maintains its cash balances at several financial institutions. Accounts at the institutions are insured by the Federal Deposit Insurance Corporation up to $250,000. Fair Value of Financial Instruments The Company's financial instruments are cash and cash equivalents, accounts receivable, accounts payable, notes payable, notes receivable and long-term debt. The recorded values of cash and cash equivalents, accounts receivable, and accounts payable approximate their fair values based on their short-term nature. The recorded values of notes payable, notes receivable and long-term debt approximate their fair values, as interest approximates market rates. Accounts Receivable and Receivables from the Joint Interest Management periodically assesses the collectability of the Company's accounts receivable and receivables from the Joint Interest. Accounts determined to be uncollectible are charged to operations when that determination is made. The Company determined that the accounts receivable from the Joint Interest accounts were uncollectable for the year ended March 31, 2016. Oil and Natural Gas Properties The Company follows the full cost method of accounting for natural gas and oil properties. Under the full cost concept, all costs incurred in acquiring, exploring, and developing properties cost center are capitalized when incurred and are amortized as mineral reserves in the cost center are produced, subject to a limitation that the capitalized costs not exceed the value of those reserves. The unamortized costs relating to a property that is surrendered, abandoned, or otherwise disposed of are accounted for as an adjustment of accumulated amortization, rather than as a gain or loss that enters into the determination of net income, until all of the properties constituting the amortization base are disposed of, at which point gain or loss is recognized. The Company capitalizes all internal costs, including: salaries and related fringe benefits of employees directly engaged in the acquisition, exploration and development of natural gas and oil properties, as well as other identifiable general and administrative costs associated with such activities. During the year ended March 31, 2016 no acquisition costs were capitalized. During the year ended March 31, 2015, we capitalized $120,000 for the purchase of the Kensington Energy Assets. Oil and natural gas properties are reviewed for recoverability at least annually or when events or changes in circumstances indicate that its carrying value may exceed future undiscounted cash inflows. Under the full cost method of accounting, a ceiling test is performed on a quarterly basis. The full cost ceiling test is an impairment test prescribed by SEC Regulation S-X Rule 4-10. The ceiling test determines a limit on the book value of oil and natural gas properties. The capitalized costs of proved oil and natural gas properties, net of accumulated depletion in the Company’s Consolidated Balance Sheets, may not exceed the estimated future net cash flows from proved oil and natural gas reserves, excluding future cash outflows associated with settling asset retirement obligations that have been accrued in the Company’s Consolidated Balance Sheets, using the unweighted average first day of the month commodity sales prices for the previous twelve months (adjusted for quality and basis differentials), held constant for the life of production, discounted at 10%, plus the cost of unevaluated properties and major development projects excluded from the costs being amortized. If capitalized costs exceed this limit, the excess is charged to expense. As of March 31, 2016 and 2015, the Company impaired $128,462 in Proven Oil and Gas Properties and $1,690,183 in Unproved Oil and Gas Properties and - 0- respectively. Property and Equipment Other property and equipment is reviewed on an annual basis for impairment and as of March 31, 2016 the Company had not identified any such impairment. Repairs and maintenance are charged to operations when incurred and improvements and renewals are capitalized. Other property and equipment are stated at cost. Depreciation is calculated using the straight-line method for financial reporting purposes and accelerated methods for tax purposes. Their estimated useful lives are as follows: Office Equipment: 5-7 Years Asset Retirement Obligations In accordance with the provisions of Financial Accounting Standards Board “FASB” Accounting Standard Codification “ASC” 410-20-15, “Accounting for Asset Retirement Obligations”, the Company records the fair value of its liability for asset retirement obligations in the period in which it is incurred and a corresponding increase in the carrying amount of the related long live assets. Over time, the liability is accreted to its present value at the end of each reporting period, and the capitalized cost is depreciated over the useful life of the related assets. Upon settlement of the liability, the Company will either settle the obligation for its recorded amount or incur a gain or loss upon settlement. The Company's asset retirement obligations relate to the plugging and abandonment of its oil properties. Intellectual Property The cost of licensed technologies acquired is capitalized and will be amortized over the shorter of the term of the licensing agreement or the remaining life of the underlying patents. The Company evaluates recoverability of identifiable intangible assets whenever events or changes in circumstances indicate that intangible assets carrying amount may not be recoverable. Such circumstances include, but are not limited to: (1) a significant decrease in the market value of an asset, (2) a significant adverse change in the extent or manner in which an asset is used, or (3) an accumulation of cost significantly in excess of the amount originally expected for the acquisition of an asset. The Company measures the carrying amount of the assets against the estimated undiscounted future cash flows associated with it. The Company impaired $21,292 for the year ended March 31, 2016. There were not any impairment loss for the fiscal year ended March 31, 2015. Should the sum of the expected cash flows be less than the carrying amount of assets being evaluated, an impairment loss would be recognized. The impairment loss would be calculated as the amount by which the carrying amount of the assets, exceed fair value. Estimated amortization of intangible assets over the next five years is as follows: March 31, 2017 and thereafter $ - Stock Based Compensation Share awards granted to employees and independent directors are accounted for under ASC 718, "Share-Based Payment". ASC 718-10 eliminates accounting for share-based compensation transaction using the intrinsic value method and requires instead that such transactions be accounted for using a fair-value-based method. The Company has elected to adopt the provisions of ASC 718-10 effective January 1, 2006, under the modified prospective transition method, in which compensation cost was recognized beginning with the effective date (a) based on the requirements of ASC 718-10 for all share-based payments granted after the effective date and (b) based on the requirements of ASC 718-10 for all awards granted to employees prior to the effective date of ASC 718-10 that remain unvested on the effective date. The Company records share-based compensation expense for awards granted to non-employees in exchange for services at fair value in accordance with the provisions of ASC 505-50, "Equity Based" payment to non-employees. For the awards granted to non-employees, the Company will record compensation expenses equal to the fair value of the share options at the measurement date, which is determined to be the earlier of the performance commitment date or the service completion date. Loss per Common Share ASC 260-10-45, “Earnings Per Share”, requires presentation of "basic" and "diluted" earnings per share on the face of the statements of operations for all entities with complex capital structures. Basic earnings per share are computed by dividing net income by the weighted average number of common shares outstanding for the period. Diluted earnings per share reflect the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted during the period. Dilutive securities having an anti-dilutive effect on diluted earnings per share are excluded from the calculation. In addition, the Company had a net loss during current period so dilutive securities would decrease negative EPS and have an anti-dilutive effect. Income Taxes Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets, including tax loss and credit carry forwards, and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. Deferred income tax expense represents the change during the period in the deferred tax assets and deferred tax liabilities. The components of the deferred tax assets and liabilities are individually classified as current and non-current based on their characteristics. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. ASC 740-10-25, “Accounting for Uncertainty in Income Taxes”, is intended to clarify the accounting for uncertainty in income taxes recognized in a company's financial statements and prescribes the recognition and measurement of a tax position taken or expected to be taken in a tax return. ASC 740-10-25 also provides guidance on de-recognition, classification, interest and penalties, accounting in interim periods, disclosure and transition. Under ASC 740-10-25, evaluation of a tax position is a two-step process. The first step is to determine whether it is more-likely-than-not that a tax position will be sustained upon examination, including the resolution of any related appeals or litigation based on the technical merits of that position. The second step is to measure a tax position that meets the more-likely-than-not threshold to determine the amount of benefit to be recognized in the financial statements. A tax position is measured at the largest amount of benefit that is greater than 50 percent likely of being realized upon ultimate settlement. Tax positions that previously failed to meet the more-likely-than-not recognition threshold should be recognized in the first subsequent period in which the threshold is met. Previously recognized tax positions that no longer meet the more-likely-than-not criteria should be de-recognized in the first subsequent financial reporting period in which the threshold is no longer met. Revenue Recognition In accordance with the requirements ASC topic 605 "Revenue Recognition", revenues are recognized at such time as (1) persuasive evidence of an arrangement exists, (2) delivery has occurred or services have been rendered, (3) the seller's price to the buyer is fixed or determinable and (4) collectability is reasonably assured. Specifically, oil and gas sales are recognized as income at such time as the oil and gas are delivered to a viable third party purchaser at an agreed price. Recent Accounting Standards In August 2014, the FASB issued ASU No. 2014-15, Presentation of Financial Statements – Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern (“ASU 2014-15”). ASU 2014-15 provides guidance about management’s responsibility to evaluate whether there is substantial doubt about an entity’s ability to continue as a going concern and sets rules for how this information should be disclosed in the financial statements. ASU 2014-15 is effective for annual periods ending after December 15, 2016 and interim periods thereafter. The Company adopted ASU 2014-15 prospectively for the annual period ending December 31, 2016. Pursuant to ASU 2014-15, the Company is required to consider whether there are adverse conditions or events that raise substantial doubt about the Company’s ability to continue as a going concern within one year after the date that the financial statements are issued and the probability that management’s plans will mitigate the adverse conditions or events (if any). Adverse conditions or events would include, but not be limited to, negative financial trends (such as recurring operating losses, working capital deficiencies, or insufficient liquidity), a need to restructure outstanding debt to avoid default, and industry developments (for example commodity price declines and regulatory changes). |
RECEIVABLE FROM JOINT INTERESTS
RECEIVABLE FROM JOINT INTERESTS | 12 Months Ended |
Mar. 31, 2016 | |
Receivables [Abstract] | |
RECEIVABLE FROM JOINT INTERESTS | NOTE 2: RECEIVABLE FROM JOINT INTERESTS The Company is the operator of certain wells acquired in the Expanded Bedford Agreement. Pursuant to a joint interest operating agreement (the “Joint Interest Agreement”), the Company charges the other owners of the Grace Wells for their pro-rata share of operating and workover expenses. These receivables are carried on the Company’s balance sheet as Receivable from Joint Interests. At March 31, 2016 and 2015, the amount of these receivables is $153,209 and $151,236, respectively. During the year ended March 31, 2016, the Company deemed the collectability of the receivable from joint interests in the amount of $153,209, as unlikely. |
DEPOSITS AND PREPAID EXPENSES
DEPOSITS AND PREPAID EXPENSES | 12 Months Ended |
Mar. 31, 2016 | |
Notes to Financial Statements | |
DEPOSITS AND PREPAID EXPENSES | NOTE 3: DEPOSITS AND PREPAID EXPENSES During the years ended March 31, 2016 and 2015 the Company has advanced $- 0- and $279,400 toward the purchase of properties. We wrote off the $279,000 in deposits of $279,400 on March 31, 2016. During the year ended March 31, 2015 the Company incurred prepaid consulting fees in the amount of $100,000 which was being amortized over 36 months. In November 2015 the Company incurred prepaid consulting fees to Rene Haeusler, a director of the company, in the amount of $50,000 which is being amortized over 48 months. Amortization through March 31, 2016 was $37,131. We wrote off the remaining balance of our prepaid consulting fees in the on March 31, 2016. March 31, 2016 March 31, 2015 Deposits on wells $ 279,400 $ 279,400 Prepaid consulting fees 150,000 100,000 429,400 379,400 Less: Accumulated Amortization on Prepaid Consulting Fees (37,131 ) (10,454 ) Less: Impairment of Well Deposits and Consulting Fees (392,269 ) — $ 0 $ 368,946 |
PROPERTY AND EQUIPMENT
PROPERTY AND EQUIPMENT | 12 Months Ended |
Mar. 31, 2016 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY AND EQUIPMENT | NOTE 4: PROPERTY AND EQUIPMENT A summary of property and equipment at March 31, 2016 and 2015 is as follows: March 31, March 31, Office Equipment $ 41,778 $ 41,778 Vehicles 22,657 22,657 64,435 64,435 Less: Accumulated depreciation (50,843 ) (46,310 ) Total $ 13,592 $ 18,125 Depreciation expense for the years ended March 31, 2016 and 2015 was $4,533 and $4,532 respectively. |
INTELLECTUAL PROPERTY RIGHTS
INTELLECTUAL PROPERTY RIGHTS | 12 Months Ended |
Mar. 31, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
INTELLECTUAL PROPERTY RIGHTS | NOTE 5: INTELLECTUAL PROPERTY RIGHTS A summary of the intellectual property rights at March 31, 2016 and 2015, are as follows: March 31, 2016 March 31, 2015 Intelli-well $ 425,850 $ 425,850 Less: accumulated amortization (404,558 ) (372,616 ) Less: impairment (21,292 ) — Total $ -0- $ 53,234 Amortization expense for the years ended March 31, 2016 and 2015 was $31,938 and $42,851. We impaired the remaining $21,292 for the year ended March 31, 2016. |
OIL AND GAS PROPERTY ACTIVITY
OIL AND GAS PROPERTY ACTIVITY | 12 Months Ended |
Mar. 31, 2016 | |
Extractive Industries [Abstract] | |
OIL AND GAS PROPERTY ACTIVITY | NOTE 6: OIL AND GAS PROPERTY ACTIVITY Producing oil and gas properties consist of the following: March 31, 2016 March 31, 2015 Lincoln County, Oklahoma $ 111,402 $ 111,402 Lipscomb County, Texas 250,082 250,082 Miller County, Arkansas 139,909 139,909 Ward Petroleum Assets 290,500 290,500 Kensington Energy Assets 120,000 120,000 Other Properties 325,185 325,185 Total Properties 1,237,078 1,237,078 Asset retirement cost, net 34,780 37,676 Property impairments (609,534 ) (481,072 ) Less: Depletion (587,508 ) (554,399 ) Net $ 74,816 $ 239,283 For the year ended March 31, 2016 and 2015, depletion per Bbl was $6.85 and $6.85 respectively. |
ACCOUNTS PAYABLE AND ACCRUED LI
ACCOUNTS PAYABLE AND ACCRUED LIABILITIES | 12 Months Ended |
Mar. 31, 2016 | |
Payables and Accruals [Abstract] | |
ACCOUNTS PAYABLE AND ACCRUED LIABILITIES | NOTE 7: ACCOUNTS PAYABLE AND ACCRUED LIABILITIES Accounts payable and accrued liabilities consisted of the following: March 31, 2016 March 31, 2015 Accounts payable $ 130,747 $ 371,721 Accrued interest 63,944 62,030 Total $ 194,691 $ 433,751 |
NOTES PAYABLE
NOTES PAYABLE | 12 Months Ended |
Mar. 31, 2016 | |
Debt Disclosure [Abstract] | |
NOTES PAYABLE | NOTE 8: NOTES PAYABLE March 31, 2016 March 31, 2015 On May 8, 2006, the Company entered into a convertible note payable agreement with a shareholder in the amount of $100,000. The note carries an interest rate of 10% per annum and matures of November 8, 2006. The note holder has the right to convert the note and accrued interest at a rate of $0.01 per share. The value of this conversion feature was treated as a loan discount for the full $100,000 of the loan and was amortized to interest expense over the life of the loan. During the year ended March 31, 2016, the Company issued 700,000 shares of common stock for the conversion of $100 of principal. Interest in the amount of $175 and $180 was accrued on this note during the year ended March 31, 2016 and 2015, respectively. The maturity of this note has been extended until April 1, 2018. The outstanding principal balance and all outstanding interest was converted into 500,000 shares on June 15, 2018. $ 1,700 $ 1,800 On November 11, 2008, the Company issued a convertible promissory note to an investor in the amount of $50,000. The current balance of the note is $30,000. The note carries an interest rate of 10% per annum and a maturity date of October 1, 2009. The note holder has the right to convert the note and accrued interest into shares of the Company’s common stock at a rate of $3.00 per share. The discount is being amortized to interest expense over the life of the note via the effective interest method. Interest in the amount of $3,000 and $3,000 was accrued on this note during the year ended March 31, 2015 and 2014, respectively. Accrued interest was $17,884 and $14,877 respectively at March 31, 2016 and 2015. This remaining balance of $30,000 on this promissory note and the promissory note issued in the amount of $50,000 on January 27, 2009 and accrued interest, was settled on March 9, 2018 for $2,500 plus the issuance of 600,000 shares of Common Stock 30,000 30,000 On January 27, 2009, the Company issued a promissory note to an investor in the amount of $50,000. The note carries an interest rate of 10% per annum and matures on December 15, 2009. In addition to the note payable, the Company issued 1,000,000 shares of common stock to the note holder. The shares are considered a discount to the note payable. The shares are value using the closing market price on the date the note was signed and have a value of $25,000. The discount will be amortized over the life of the note via the effective interest method. Accrued interest was $35,877 and $30,863 at March 31, 2016 and 2015 respectively. This note and the promissory note issued in the amount of $50,000 on November 11, 2008, with a remaining balance of $30,000 plus accrued interest was settled on March 9, 2018 for $2,500 plus the issuance of 600,000 shares of Common Stock. 50,000 50,000 On November 28, 2006, Oiltek, of which the Company has a majority interest in, issued a convertible note payable in the amount of $2,500. This note bears interest at a rate of 8% per annum and matures on October 1, 2007. The principal amount of the note and accrued interest are convertible into shares of the Company’s common stock at a price of $0.01 per share. A beneficial conversion feature in the amount of $2,500 was recorded as a discount to the note and was amortized to interest expense during the period ended December 31, 2006. Interest in the amount of $200 and $200 was accrued on this note during the twelve months ended March 31, 2016 and 2015, respectively. The maturity date of this note has been extended until Apri1 1, 2018. The outstanding principal balance and all accrued interest was converted into 950,000 shares on April 19, 2018. 2,500 2,500 On November 28, 2006, Oiltek, of which the Company has a majority interest in, issued a convertible note payable in the amount of $5,000. This note bears interest at a rate of 8% per annum and matured on October 1, 2007. The principal amount of the note and accrued interest are convertible into shares of the Company’s common stock at a price of $0.01 per share. A beneficial conversion feature in the amount of $5,000 was recorded as a discount to the note and was amortized to interest expense during the period ended December 31, 2006. Interest in the amount of $400 and $400 was accrued on this note during the twelve months ended March 31, 2016 and 2015, respectively. The maturity date of this note has been extended until Apri1 1, 2018. The outstanding principal balance and all accrued interest was converted into 400,000 shares on April 19, 2018. 5,000 5,000 On September 29, 2014, the Company issued two promissory notes note payable in the total amount of $60,000. These notes bear interest at a rate of 5% per annum, matured on January 1, 2014, and were extended until December 1, 2016. Accrued interest as of March 31, 2015 and March 31, 2016 was $1,504 and 4,512. The principal and accrued interest on these notes were settled in March 2018 for $5,000. 60,000 60,000 On January 1, 2011 the Company issued a promissory note payable in the amount of $250,000. This note bears interest at a rate of 8% per annum and matured on January 1, 2014, and were extended until April 1, 2015. The principal amount of the note and accrued interest are convertible into shares of the Company’s common stock at a price of $0.01 per share. A beneficial conversion feature in the amount of $95,000 was recorded as a discount to the note and is being amortized to interest expense. A discount of $-0- and $94,050 was deducted for the years ended March 31, 2015 and 2014 respectively. Interest in the amount of $4,010 and $17,945 was accrued on this note during the twelve months ended March 31, 2015 and 2014, respectively. Accrued interest was $5,858 and $1,847 at March 31, 2015. During the year ended March 31, 2016, we settled $50,000 of this note plus accrued interest for $10,000 and issued 25 shares of our Series B Preferred Stock for the remaining $25,000 plus accrued interest 0 75,000 Total outstanding $ 149,200 $ 224,300 Note Unamortized Net of March 31, 2016: Amount Discounts Discount Notes payable – long-term portion $ — $ — $ — Notes payable – current portion 149,200 — 149,200 Total $ 149,200 $ — $ 149,200 Note Unamortized Net of March 31, 2015: Amount Discounts Discount Notes payable – long-term portion $ 224,300 $ — $ 224,300 Notes payable – current portion — — — Total $ 224,300 $ — $ 224,300 Minimum future principal payments under the note payable are due as follows during the year ended March 31: 2017 $ 149,200 |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 12 Months Ended |
Mar. 31, 2016 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | NOTE 9: RELATED PARTY TRANSACTIONS During the fiscal year ended March 31, 2016 and 2015, the president advanced the Company $0 and $0, respectively. The balance as of March 31, 2016 and 2015 were $20,000 and $20,000, respectively. Preferred Stock The 100 shares of Series A Preferred Stock were issued on June 3, 2002 as payment for $500,000 in promissory notes, are convertible into the number of shares of common stock sufficient to represent forty percent (40%) of the fully diluted shares outstanding after their issuance The holder of these shares of Series A Preferred Stock is our President, Kent Rodriguez. The Series A Preferred Stock pays an eight percent (8%) dividend. The dividends are cumulative and payable quarterly. The Series A Preferred Stock carries liquidating preference, over all other classes of stock, equal to the amount paid for the stock plus any unpaid dividends. The Series A Preferred Stock provides for voting rights on an "as converted to common stock" basis. During the years ended March 31, 2016 and 2015, the Company incurred $40,000 in Class A preferred stock dividends. The holders of the Series A Preferred Stock have the right to convert each share of preferred stock into a sufficient number of shares of common stock to equal 40% of the then fully-diluted shares outstanding. Fully diluted shares outstanding is computed as the sum of the number of shares of common stock outstanding plus the number of shares of common stock issuable upon exercise, conversion or exchange of outstanding options, and warrants. In the event that the Company does not have an adequate number of shares of Common Stock authorized, upon a conversion request, only the maximum allowable number of shares of Series A preferred stock shall convert into Common Stock and the remaining shares of Series A preferred Stock shall convert upon lapse of the applicable restrictions. On January 12, 2018, our Board of Directors agreed to amend Designation of the Series A Convertible Preferred Stock be amended by changing the ratio for conversion, in Article IV, subparagraph (a), from .4% to .51% so that upon conversion the number of shares of common stock to be exchanged shall equal 51% of then issued and outstanding common stock. Employment Agreements KENT RODRIGUEZ During the years ended March 31, 2016 and 2015, the Company charged to operations the amount of $49,202 and $48,000 in annual salary for Mr. Rodriguez, of which $50,457 and $49,202 was paid to him during the years ended March 31, 2016 and 2015, respectively. As of March 31, 2016 and 2015, the balances of accrued and unpaid salaries were $205,462 and $211,317. In March, 2013, our Board of Directors authorized the issuance of 2,000 shares of Series B Preferred Stock, par value $0.10 per share (the "Series B Preferred Stock"). The face amount of share of the Series B Preferred Stock is $1,000. As of March 31, 2016 and 2015, the Company has 1,983 and 1,625 shares of Series B preferred stock respectively issued and outstanding. The liquidation preference as of March 31, 2016 and 2015 was $1,983,000 and $1,625,000 or $1,000.00 per share. The Series B Preferred Stock accrues dividends at the rate of 9% per annum on the original purchase price for the shares. These dividends are payable annually, beginning in January 2014. We are prohibited from paying any dividends on our Common Stock until all accrued dividends are paid on our Series B Preferred Stock. The Series B Preferred Stock ranks junior to the Series A Preferred Stock owned by our President and Chief Executive Officer, as to Dividends and to a distribution of assets in the event of a liquidation of assets. The Holders of Series B Preferred Stock do not have any voting rights and their consent is not required to take any sort of corporate action. In November 2015 we issued 50 shares Series B Preferred Stock for consulting services to Rene Haeusler, a director of the Company, for $50,000. As of March 31, 2016, the balances of related party was $0. For details, please refer to Note 3. |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Mar. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | NOTE 10: INCOME TAXES Deferred income taxes result from the temporary difference arising from the use of accelerated depreciation methods for income tax purposes and the straight-line method for financial statement purposes, and an accumulation of Net Operating Loss carryforwards for income tax purposes with a valuation allowance against the carryforwards for book purposes. In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. Included in deferred tax assets are Federal and State net operating loss carryforwards of $31,770,841 which will expire beginning in 2029. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. Management considers the scheduled reversal of deferred tax liabilities, projected future taxable income, and tax planning strategies in making this assessment. Based upon our cumulative losses through March 31, 2016, we have provided a valuation allowance reducing the net realizable benefits of these deductible differences to $0 at March 31, 2016. The amount of the deferred tax asset considered realizable could change in the near term if projected future taxable income is realized. Due to significant changes in the Company's ownership, the Company's future use of its existing net operating losses may be limited. A reconciliation between the actual income tax expense and income taxes computed by applying the statutory Federal and state income tax rates to income from continuing operations before income taxes is as follows: Twelve Months Ended March 31, 2016 Twelve Months Ended March 31, 2015 Computed “expected” income tax benefit at approximately 34% $ (10,802,086 ) $ (10,471,510 ) Change in valuation allowance $ 10,802,086 $ 10,471,510 |
STOCKHOLDERS' EQUITY
STOCKHOLDERS' EQUITY | 12 Months Ended |
Mar. 31, 2016 | |
Equity [Abstract] | |
STOCKHOLDERS' EQUITY | NOTE 11: STOCKHOLDERS’ EQUITY Preferred Stock Series A Preferred Stock The Company is authorized to issue 1,000,000 shares of preferred stock, par value $0.10 per share. As of March 31, 2016 and 2015, the Company has 100 shares of Series A preferred stock issued and outstanding. During the twelve months ended March 31, 2016 and 2015, the Company incurred $40,000 respectively in Series A preferred stock dividends, and paid $35,500 and $49,000 for the twelve months ended March 31, 2016 and 2015 respectively. As of March 31, 2016 and 2015, the accrued balance due Mr. Rodriguez was $37,450 and $32,950 respectively. The liquidation preference as of March 31, 2016 and March 31, 2015 was $537,450 or $5,374.5 per share and $532,950 or $5,329.5 per share. The 100 shares of Series A Preferred Stock, issued to Mr. Rodriguez as payment for $500,000 in promissory notes, are convertible into the number of shares of common stock sufficient to represent 40 percent (40%) of the fully diluted shares outstanding after their issuance. The Series A Preferred Stock pays an eight percent (8%) dividend. The dividends are cumulative and payable quarterly. The Series A Preferred Stock carries liquidating preference, over all other classes of stock, equal to the amount paid for the stock plus any unpaid dividends. The Series A Preferred Stock provides for voting rights on an "as converted to common stock" basis. On January 12, 2018, our Board of Directors agreed to amend Designation of the Series A Convertible Preferred Stock be amended by changing the ratio for conversion, in Article IV, subparagraph (a), from .4% to .51% so that upon conversion the number of shares of common stock to be exchanged shall equal 51% of then issued and outstanding common stock. The holders of the Series A Preferred Stock have the right to convert the preferred stock into shares of common stock such that if converted simultaneously, they shall represent fifty-one percent (51%) of the fully diluted shares outstanding after their issuance. Fully diluted shares outstanding is computed as the sum of the number of shares of common stock outstanding plus the number of shares of common stock issuable upon exercise, conversion or exchange of outstanding options, warrants, or convertible securities. Series B Preferred Stock In March, 2013, our Board of Directors authorized the issuance of 2,000 shares of Series B Preferred Stock, par value $0.10 per share (the "Series B Preferred Stock"). The face amount of share of the Series B Preferred Stock is $1,000. As of March 31, 2016 and 2015, the Company has 1,983 and 1,625 shares of Series B preferred stock respectively issued and outstanding. The liquidation preference as of March 31, 2016 and 2015 was $1,983,000 and $1,625,000 or $1,000.00 per share. The Series B Preferred Stock accrues dividends at the rate of 9% per annum on the original purchase price for the shares. These dividends are payable annually, beginning in January 2014. We are prohibited from paying any dividends on our Common Stock until all accrued dividends are paid on our Series B Preferred Stock. The Series B Preferred Stock ranks junior to the Series A Preferred Stock owned by our President and Chief Executive Officer, as to Dividends and to a distribution of assets in the event of a liquidation of assets. The Holders of Series B Preferred Stock do not have any voting rights and their consent is not required to take any sort of corporate action. Series B Preferred Stock Issuances during the year ended March 31, 2016: In June 2015 we exchanged 25 shares Series B Preferred Stock for $25,000 of notes payable. In June 2015 we issued 100 Shares of Series B Preferred Stock to an accredited investor for $100,000. In September 2015 we issued 75 Shares of Series B Preferred Stock to an accredited investor for $75,000. In November 2015 we issued 50 shares Series B Preferred Stock for consulting services for $50,000. In December 2015 we issued 85 Shares of Series B Preferred Stock to an accredited investor for $85,000. In March 2016 we issued 23 Shares of Series B Preferred Stock to an accredited investor for $23,000. In March 2018 we issued 2,015000 Shares of Common Stock for all accrued interest as of March 31, 2018, on the outstanding 1,625 shares of our Series B Preferred Stock. During the twelve months ended March 31, 2016 and 2015, the Company incurred $165,038 and $135,599 in dividends on Series B preferred stock. Total dividends payable from both A and B preferred shares at March 31, 2016 and 2015 is $205,488 and $32,950 respectively. AFS Holdings, Inc. Series A Preferred Stock On October 5, 2015, the Articles of Incorporation of AFS were amended to authorize the issuance of 5,000,000 shares of Preferred Stock, par value $0.001, of which 1,000 shares are designated as Series A Preferred Stock. AFS Series A Preferred Stock accrues dividends at the rate of 12% per annum on the original purchase price for the shares. These dividends are payable annually in cash or the AFS Common Stock at the discretion of the Board of Directors, beginning in March 2016. AFS is prohibited from paying any dividends on AFS Common Stock until all accrued dividends are paid on our Series A preferred Stock. Upon liquidation, the Series A Preferred Stock shareholders shall be entitled to the stated value of each shares held, in addition to accrued and unpaid dividends, as long as AFS possesses the funds necessary to make payments. AFS may, at any time, redeem the shares of Series A Preferred Stock without the prior written consent of the Series A Preferred Stock shareholders. The Series A Preferred Stock ranks senior to AFS Common Stock in a distribution of assets in the event of a liquidation of assets. There are currently 50 shares of AFS Series A Preferred Stock outstanding. As of March 31, 2016, the liquidation preference is $53,000 or $1,060 per share. Accrued interest as of March 31, 2016 is $3,000. The Holders of AFS Series A Preferred Stock do not have any voting rights and their consent is not required to take any sort of corporate action. AFS Series A Preferred Stock Issuances during the year ended March 31, 2016: On October 13, 2015 we issued 50 shares of AFS Series A Preferred Stock to an unaffiliated accredited investor for $50,000. Common Stock On June 4, 2012 the Board of Directors approved an amendment to our Articles of Incorporation to a reverse split of the issued and outstanding shares of Common Stock of the Corporation (“Shares”) such that each holder of Shares as of the record date of June 4, 2012 shall receive one (1) post-split Share on the effective date of June 4, 2012 for each three hundred (300) Shares owned. The reverse split was effective on July 23, 2012. The Company has authorized 200,000,000 shares of common stock with a par value of $0.001 per share. As of March 31, 2016 and 2015, the Company has 18,198,062 and 16,548,062 shares of common stock issued and outstanding. Common stock issuances during the year ended March 31, 2015: On April 25, 2014, the Company issued 200,000 shares of common stock to a consultant, the value of these shares in the amount of $14,000, or $0.07 per share was charged to operations, and was valued at closing bid price of the Company's common stock on the date the Consulting Agreement was executed by the Company. On December 1, 2014, the Company issued 300,000 shares of common stock for a technology licensing agreement dated December 1, 2014, the value of these shares in the amount of $15,000, or $0.05 per share was charged to operations, and was valued at the middle of the closing bid price and the closing offering price of the Company's common stock on the date the Consulting Agreement was executed by the Company On December 15, 2015, the Company issued 650,000 shares of common stock in exchange for a $150,000 promissory note payable and $90,000 of accrued interest. The value of these shares in the amount of $32,500, or $0.05 per share and was valued at closing bid price of the Company's common stock on the date the Agreement was executed by the Company. $207,500 was treated as a gain from this transaction. On December 26, 2014, the Company issued 1,700,000 shares of common to a consultant, the value of these shares in the amount of $85,000, or $0.05 per share was charged to operations, and was valued at the middle of the closing bid price and the closing offering price of the Company's common stock on the date the Consulting Agreement was executed by the Company. On March 25, 2015, the Company issued 1,540,000 shares of common stock to the holders of Series B Preferred Stock to pay all accrued interest as of March 31, 2015. The value of these shares in the amount of $61,600, or $.04 per share. On March 27, 2015, the Company issued 500,000 shares of common stock along with $6,000, in exchange for a $150,000 promissory note payable and $90,000 of accrued interest. The value of these shares in the amount of $20,000 or $0.04 per share, and were valued at closing bid price of the Company's common stock on the date the Agreement was executed by the Company, $215,000 was treated as a gain from this transaction. Common stock issuances during the year ended March 31, 2016: On April 2, 2015 we issued 300,000 shares of our Common Stock to our directors for their services. The shares were valued at $12,000 or $0.04 per share and were valued based on the midpoint between the closing bid and offer price of the Company's common stock on the date the shares were issued. On June 25, 2015, the company issued 650,000 shares of Common Stock, paid $5,000 in cash and issued a $5,000 promissory note for settlement of an account payable of $280,972.06. The shares were valued at $26,000 or $0.04 per share. The value of the shares was based on the closing bid price of the Company's common stock on the date the Agreement was executed by the Company. $244,972 was treated as a gain from this transaction. On November 9, 2015, the Company issued 700,000 shares of common stock for the conversion of a note payable and assumption of debt. The fair market value of these shares was $28,000 or $0.04 per share which was based on the current market value on the date of issuance. $100 has been credited to the note payable, $830 to interest payable, and a loss of $27,070 was recognized on this conversion, and was charged to operations. Options There are no stock options outstanding. Warrants None |
TECHNOLOGY LICENSE AGREEMENTS
TECHNOLOGY LICENSE AGREEMENTS | 12 Months Ended |
Mar. 31, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
TECHNOLOGY LICENSE AGREEMENTS | NOTE 12: TECHNOLOGY LICENSE AGREEMENTS On December 1, 2014, the Company entered into an exclusive license agreement for anti-corrosion technology from Ronald Knight in exchange for three hundred thousand (300,000) shares of our common stock. This license calls for an earned royalty of three percent (3.00%) on sales of licensed products and services as they may relate to corrosion prevention and maintenance of sump pumps at gasoline and diesel dispensing locations, including, but not limited to gas stations, convenience stores, trucking companies, bus companies, and any other locations where gasoline and/or diesel is dispensed. We did not have any revenue for the period ended March 31, 2015. The Company terminated this agreement on August 7, 2017 |
LOSS PER SHARE
LOSS PER SHARE | 12 Months Ended |
Mar. 31, 2016 | |
Earnings Per Share [Abstract] | |
LOSS PER SHARE | NOTE 13: LOSS PER SHARE ASC 260-10-45 requires a reconciliation of the numerator and denominator of the basic and diluted earnings per share (EPS) computations. We compute basic EPS by dividing net income (loss) attributable to common stockholders by the weighted-average number of shares of common stock outstanding during the period. The calculation of income (loss) available to common stockholders and EPS is based on the underlying premise that all income after payment of dividends on preferred shares is available to and will be distributed to the common stockholders. As the Company is in a loss position during the year ended March 31, 2016 and 2015, there is no dilutive effect included. The net loss per share was $0.154 and $0.006 for March 31, 2016 and 2015. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Mar. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | NOTE 14: Commitments and contingencies through the date of these financial statements were issued have been considered by the Company and none were noted which were required to be disclosed. |
ASC 932-235-55 SUPPLEMENTAL DIS
ASC 932-235-55 SUPPLEMENTAL DISCLOSURES | 12 Months Ended |
Mar. 31, 2016 | |
Asc 932-235-55 Supplemental Disclosures | |
ASC 932-235-55 SUPPLEMENTAL DISCLOSURES | NOTE 15: ASC 932-235-55 SUPPLEMENTAL DISCLOSURES Net Capitalized Costs The Company's aggregate capitalized costs related to natural gas and oil producing activities are summarized as follows: March 31, 2016 March 31, 2015 Natural gas and oil properties and related equipment: Proven $ 1,271,858 $ 1,274,754 Unproven 1,867,183 1,867,183 Accumulated depreciation, depletion, and impairment (2,887,225 ) (1,035,471 ) Net capitalized costs $ 251,816 $ 2,016,466 Costs Incurred Costs incurred in natural gas and oil property acquisition, exploration and development activities that have been capitalized are summarized as follows: March 31, March 31, Acquisition of properties $ — $ 120,000 Development costs — -0- Total costs incurred $ — $ 120,000 Results of Operations for Natural Gas and Oil Producing Activities The Company's results of operations from natural gas and oil producing activities are presented below for the fiscal years ended March 31, 2016 and 2015. The following table includes revenues and expenses associated directly with the Company's natural gas and oil producing activities. It does not include any interest costs and general and administrative costs and, therefore, is not necessarily indicative of the contribution to consolidated net operating results of the Company's natural gas and oil operations. March 31, March 31, 2015 Production revenues $ 52,933 $ 110,371 Production costs (66,081 ) (100,060 ) Depreciation and depletion expense (69,579 ) (74,411 ) $ (82,727 ) $ (64,100 ) Imputed income tax provision (1) — — Results of operation for natural gas / oil producing activity $ (82, 727) $ (64,100 ) (1) Concentration of customers For the year ended March 31, 2016, three customers, KROG Partners, Scissortail Energy and Ward Petroleum, individually accounted for 28%, 20% and 16% of the Company’s revenues, respectively. For the year ended March 31, 2015, four customers, Scissortail Energy, KROG Partners, Rockwell Energy and Swift Energy, individually accounted for 33%, 14%, 11% and 11% of the Company’s revenues, respectively. Except for the aforementioned customers, there was no other single customer who accounted for more than 10% of the Company’s revenues for the year ended March 31, 2016 and 2015. (2) The imputed income tax provision is hypothetical (at the statutory rate) and determined without regard to the Company's deduction for general and administrative expenses, interest costs and other income tax credits and deductions, nor whether the hypothetical tax provision will be payable. Natural Gas and Oil Reserve Quantities The following schedule contains estimates of proved natural gas and oil reserves attributable to the Company. Proved reserves are estimated quantities of natural gas and oil that geological and engineering data demonstrate with reasonable certainty to be recoverable in future years from known reservoirs under existing economic and operating conditions. Proved developed reserves are those which are expected to be recovered through existing wells with existing equipment and operating methods. Reserves are stated in thousand cubic feet (mcf) of natural gas and barrels (bbl) of oil. Geological and engineering estimates of proved natural gas and oil reserves at one point in time are highly interpretive, inherently imprecise and subject to ongoing revisions that may be substantial in amount. Although every reasonable effort is made to ensure that the reserve estimates are accurate, due to their nature reserve estimates are generally less precise than other estimates presented in connection with financial statement disclosures. Oil - bbls Proved reserves: Balance as of March 31, 2014 6,883 Production (567 ) Purchase of reserves-in-place 3,414 Technical Revision 338 Economic Revision (80 ) Balance as of March 31, 2015 9,988 Production (1,136 ) Purchase of reserves-in-place — Technical Revisions (1,039 ) Economic Revision (3,616 ) Balance as of March 31, 2016 5,275 Gas - mcf Proved reserves: Balance as of March 31, 2014 133,136 Production (9,470 ) Purchase of reserves-in-place 8,071 Technical Revision 17,957 Economic Revision — Balance as of March 31, 2015 149,694 Production (15,744 ) Purchase of reserves-in-place — Technical Revisions 4,270 Economic Revision (29,387 ) Balance as of March 31, 2016 108,833 Standardized Measure of Discounted Future Net Cash Flows The following schedule presents the standardized measure of estimated discounted future net cash flows from the Company's proved reserves for the fiscal years ended March 31, 2016 and 2015. Estimated future cash flows are based on independent reserve data. Because the standardized measure of future net cash flows was prepared using the prevailing economic conditions existing at March 31, 2016 and 2015, it should be emphasized that such conditions continually change. Accordingly, such information should not serve as a basis in making any judgment on the potential value of the Company's recoverable reserves or in estimating future results of operations. March 31, 2016 March 31, 2015 Future production revenue $ 428,105 $ 1,317,165 Future production costs (317,887 ) (675,670 ) Future development costs — — Future cash flows before income taxes 110,218 641,495 Future income tax — — Future net cash flows 110,218 641,495 Effect of discounting future annual cash flows at 10% (35,402 (253,043 ) Standard measure of discounted net cash flows $ 74,816 $ 388,452 (1) The weighted average oil wellhead price used in computing the Company's reserves were $42.10 per bbl and $80.60 per bbl at March 31, 2016 and 2015, respectively. The weighted average gas wellhead price used in computing the Company's reserves were $1.824 and $3.34/mmbtu at March 31, 2016 and 2015, respectively. The oil and gas pricing were calculated using the arithmetic average of the price on the first day of each month that was received for each property during the previous fiscal year. These prices were held constant throughout the economic life of the properties. Previous year run checks were used to determine the actual prices received. The following schedule contains a comparison of the standardized measure of discounted future net cash flows to the net carrying value of proved natural gas and oil properties at March 31, 2016 and 2015: March 31, 2016 March 31, 2015 Standardized measure of discount future net cash flows $ 74,816 $ 388,452 Proved natural oil and gas property, net of accumulated depreciation, depletion, and amortization, including impairment 74,816 239,283 Standardized measure of discount future net cash flows in excess of net carrying value of proved natural oil and gas properties $ — $ 149,169 |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Mar. 31, 2016 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | NOTE 16: SUBSEQUENT EVENTS The Company has reviewed the subsequent event through the date of this report. Below are our subsequent events: On January 29, 2018 the Company executed a Promissory Note between the Company and On March 21, 2018 the Board of Directors and a majority of the Company's shareholders approved an amendment to our Articles of Incorporation to change the Company's name to Groove Botanicals, Inc. We filed an amendment to our Articles of Incorporation with the State of Nevada on May 18, 2018. Our Company’s new name reflects our new corporate direction as a consumer health products company dedicated to improving people’s health and well-being. We will assemble a portfolio of assets via royalty agreements, equity investments, and licensing agreements, as well as develop our own proprietary CB3 skin care products. Our products will contain premium hemp extracts with a broad range of cannabinoids, including cannabidiol (CBD). CBD is . |
SUMMARY OF SIGNIFICANT ACCOUN23
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Mar. 31, 2016 | |
Accounting Policies [Abstract] | |
Nature of Operations | Nature of Operations Groove Botanicals, Inc. (the "Company") was originally incorporated in Colorado in April 1991 under the name Snow Runner (USA), Inc. The Company was the general partner of Snow Runner (USA) Ltd.; a Colorado limited partnership to sell proprietary snow skates under the name "Sled Dogs" which was dissolved in August 1992. In late 1993, the Company relocated its operations to Minnesota and in January 1994 changed our name to Snow Runner, Inc. In November 1994 we changed our name to the Sled Dogs Company. On November 5, 1997, we filed for protection under Chapter 11 of the U.S. Bankruptcy Code. In September 1998, we emerged from protection of Chapter 11 of the U.S. Bankruptcy Code. In May, 1999, we changed our state of domicile to Nevada and our name to XDOGS.COM, Inc. On July 22, 2005, the Board of Directors and a majority of the Company's shareholders approved an amendment to our Articles of Incorporation to change the Company's name to Avalon Oil & Gas, Inc., and to increase the authorized number of shares of our common stock from 200,000,000 shares to 1,000,000,000 shares par value of $0.001, and engage in the acquisition of producing oil and gas properties. On November 16, 2011, a majority of the Company's shareholders approved an amendment to our Articles of Incorporation to increase the authorized number of shares of our common stock from 1,000,000,000 shares to 3,000,000,000 shares par value of $0.001. On June 4, 2012 the Board of Directors approved an amendment to our Articles of Incorporation to a reverse split of the issued and outstanding shares of Common Stock of the Corporation (“Shares”) such that each holder of Shares as of the record date of June 4, 2012 shall receive one (1) post-split Share on the effective date of June 4, 2012 for each three hundred (300) Shares owned. The reverse split was effective on July 23, 2012. On September 28, 2012, we held a special meeting of Avalon’s shareholders and approved an amendment to the Company’s Articles of Incorporation such that the Company would be authorized to issue up to 200,000,000 shares of common stock. We filed an amendment with the Nevada Secretary of State on April 10, 2013, to increase our authorized shares to 200,000,000. On March 21, 2018 the Board of Directors and a majority of the Company's shareholders approved an amendment to our Articles of Incorporation to change the Company's name to Groove Botanicals, Inc. We filed an amendment to our Articles of Incorporation with the State of Nevada on May 18, 2018. The Company is currently in the process of raising funds to manufacture and sell our CBD skincare products. On September 22, 2007 the Company entered into an agreement with respect to its purchase of a 75.6% interest in Oiltek, Inc. (Oiltek) for $50,000 and the right of Oiltek to market Avalon's intellectual property. On March 19, 2014, the Company formed Weyer Partners, LLC, (“Weyer”) a one hundred percent (100%) wholly owned Minnesota Corporation. Weyer Partners, LLC, was formed to operate oil and gas properties in Oklahoma and Texas. Weyer is consolidated in these financial statements. On May 9, 2014, the Company formed AFS Holdings, Inc., (“AFS”) a one hundred percent (100%) wholly owned Nevada Corporation. AFS Holding, Inc., was formed to leverage the Company’s relationship with IP TechEx, and market technology licensed from IP TechEx. AFS is consolidated in these financial statements. |
Principles of consolidation | Principles of consolidation The consolidated financial statements include the accounts of the Company and the Company’s subsidiary’s Oiltek, Inc., AFS Holdings, Inc., and Weyer Partners, LLC. All significant inter-company items have been eliminated in consolidation. |
Going Concern | Going Concern The Company has minimal revenues from our remaining oil and gas assets. We are in need of additional cash resources to maintain our operations. As of March 31, 2016, the Company had a working capital deficit of $676,586, had incurred losses since inception of $33,610,746, and have not yet received any revenue from the sale our CBD skincare products. These factors raise substantial doubt about its ability to continue as a going concern. The Company’s ability to continue as a going concern is dependent on its ability to raise additional capital or obtain necessary debt financing. The Company is presently dependent on its controlling shareholder to provide us funding for its daily operation and expenses, including professional fee and fees charged by regulators, although he is under no obligation to do so. The Company intends to meet the cash requirements for the next 12 months from the issuance date of this report through a combination of debt and equity financing by way of private placements, friends, family and business associates. The Company currently did not have any arrangements in place to complete any private placement financings and there is no assurance that the Company will be successful in completing any such financings on terms that will be acceptable to it. If we do not have sufficient working capital to pay our operating costs for the next 12 months, we will require additional funds to pay our legal, accounting and other fees associated with our Company and our filing obligations under United States federal securities laws, as well as to pay our other accounts payable generated in the ordinary course of our business. Once these costs are accounted for, we will focus on the following the manufacture and sale of our CBD skincare products. Any failure to raise money will have the effect of delaying the timeframes in the business plan as set forth above, and the Company may have to push back the dates of such activities. The financial statements have been prepared on a going concern basis which assumes the Company will be able to realize its assets and discharge its liabilities in the normal course of business for the foreseeable future. The Company has incurred losses and further losses are anticipated as a result of the development of business which raises substantial doubt about the Company’s ability to continue as a going concern within the next twelve months from the issuance date of this report. The ability to continue as a going concern is dependent upon the Company generating profitable operations in the future and/or obtaining financing necessary to meet the Company’s obligations and repay its liabilities arising from normal business operations when they come due. Management intends to finance operating costs over the next twelve months with existing cash on hand and loans from directors and/or private placement of the Company’s common stock. Our cash and cash equivalents were $108,220 on March 31, 2016, compared to $135,713 on March 31, 2015. We met our liquidity needs through the issuance of our common stock, preferred stock, and notes payable for cash and from the revenue derived from our oil and gas operations. We need to raise additional capital during the fiscal year, but currently have not acquired sufficient additional funding. Our ability to continue operations as a going concern is highly dependent upon our ability to obtain immediate additional financing, or generate revenues from the sale of our CBD skincare products, and to achieve profitability, none of which can be guaranteed. Unless additional funding is obtained, it is highly unlikely that we can continue to operate. There is no assurance that even with adequate financing or combined operations, we will generate revenues and be profitable. Ultimately, our success is dependent upon our ability to generate revenues from the sale of our CBD skin care products. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with generally accepted accounting principles generally accepted in the United States of America requires us to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results could differ from those estimates and assumptions. |
Basis of Accounting | Basis of Accounting The Company's financial statements are prepared using the accrual method of accounting. Revenues are recognized when earned and expenses when incurred. |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash and cash equivalents consist primarily of cash on deposit. The Company maintains its cash balances at several financial institutions. Accounts at the institutions are insured by the Federal Deposit Insurance Corporation up to $250,000. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments The Company's financial instruments are cash and cash equivalents, accounts receivable, accounts payable, notes payable, notes receivable and long-term debt. The recorded values of cash and cash equivalents, accounts receivable, and accounts payable approximate their fair values based on their short-term nature. The recorded values of notes payable, notes receivable and long-term debt approximate their fair values, as interest approximates market rates. |
Accounts Receivable and Receivables from the Joint Interest | Accounts Receivable and Receivables from the Joint Interest Management periodically assesses the collectability of the Company's accounts receivable and receivables from the Joint Interest. Accounts determined to be uncollectible are charged to operations when that determination is made. The Company determined that the accounts receivable from the Joint Interest accounts were uncollectable for the year ended March 31, 2016. |
Oil and Natural Gas Properties | Oil and Natural Gas Properties The Company follows the full cost method of accounting for natural gas and oil properties. Under the full cost concept, all costs incurred in acquiring, exploring, and developing properties cost center are capitalized when incurred and are amortized as mineral reserves in the cost center are produced, subject to a limitation that the capitalized costs not exceed the value of those reserves. The unamortized costs relating to a property that is surrendered, abandoned, or otherwise disposed of are accounted for as an adjustment of accumulated amortization, rather than as a gain or loss that enters into the determination of net income, until all of the properties constituting the amortization base are disposed of, at which point gain or loss is recognized. The Company capitalizes all internal costs, including: salaries and related fringe benefits of employees directly engaged in the acquisition, exploration and development of natural gas and oil properties, as well as other identifiable general and administrative costs associated with such activities. During the year ended March 31, 2016 no acquisition costs were capitalized. During the year ended March 31, 2015, we capitalized $120,000 for the purchase of the Kensington Energy Assets. Oil and natural gas properties are reviewed for recoverability at least annually or when events or changes in circumstances indicate that its carrying value may exceed future undiscounted cash inflows. Under the full cost method of accounting, a ceiling test is performed on a quarterly basis. The full cost ceiling test is an impairment test prescribed by SEC Regulation S-X Rule 4-10. The ceiling test determines a limit on the book value of oil and natural gas properties. The capitalized costs of proved oil and natural gas properties, net of accumulated depletion in the Company’s Consolidated Balance Sheets, may not exceed the estimated future net cash flows from proved oil and natural gas reserves, excluding future cash outflows associated with settling asset retirement obligations that have been accrued in the Company’s Consolidated Balance Sheets, using the unweighted average first day of the month commodity sales prices for the previous twelve months (adjusted for quality and basis differentials), held constant for the life of production, discounted at 10%, plus the cost of unevaluated properties and major development projects excluded from the costs being amortized. If capitalized costs exceed this limit, the excess is charged to expense. As of March 31, 2016 and 2015, the Company impaired $128,462 in Proven Oil and Gas Properties and $1,690,183 in Unproved Oil and Gas Properties and - 0- respectively. |
Property and Equipment, net | Property and Equipment Other property and equipment is reviewed on an annual basis for impairment and as of March 31, 2016 the Company had not identified any such impairment. Repairs and maintenance are charged to operations when incurred and improvements and renewals are capitalized. Other property and equipment are stated at cost. Depreciation is calculated using the straight-line method for financial reporting purposes and accelerated methods for tax purposes. Their estimated useful lives are as follows: Office Equipment: 5-7 Years |
Asset Retirement Obligations | Asset Retirement Obligations In accordance with the provisions of Financial Accounting Standards Board “FASB” Accounting Standard Codification “ASC” 410-20-15, “Accounting for Asset Retirement Obligations”, the Company records the fair value of its liability for asset retirement obligations in the period in which it is incurred and a corresponding increase in the carrying amount of the related long live assets. Over time, the liability is accreted to its present value at the end of each reporting period, and the capitalized cost is depreciated over the useful life of the related assets. Upon settlement of the liability, the Company will either settle the obligation for its recorded amount or incur a gain or loss upon settlement. The Company's asset retirement obligations relate to the plugging and abandonment of its oil properties. |
Intellectual Property Rights, net | Intellectual Property The cost of licensed technologies acquired is capitalized and will be amortized over the shorter of the term of the licensing agreement or the remaining life of the underlying patents. The Company evaluates recoverability of identifiable intangible assets whenever events or changes in circumstances indicate that intangible assets carrying amount may not be recoverable. Such circumstances include, but are not limited to: (1) a significant decrease in the market value of an asset, (2) a significant adverse change in the extent or manner in which an asset is used, or (3) an accumulation of cost significantly in excess of the amount originally expected for the acquisition of an asset. The Company measures the carrying amount of the assets against the estimated undiscounted future cash flows associated with it. The Company impaired $21,292 for the year ended March 31, 2016. There were not any impairment loss for the fiscal year ended March 31, 2015. Should the sum of the expected cash flows be less than the carrying amount of assets being evaluated, an impairment loss would be recognized. The impairment loss would be calculated as the amount by which the carrying amount of the assets, exceed fair value. Estimated amortization of intangible assets over the next five years is as follows: March 31, 2017 and thereafter $ - |
Stock Based Compensation | Stock Based Compensation Share awards granted to employees and independent directors are accounted for under ASC 718, "Share-Based Payment". ASC 718-10 eliminates accounting for share-based compensation transaction using the intrinsic value method and requires instead that such transactions be accounted for using a fair-value-based method. The Company has elected to adopt the provisions of ASC 718-10 effective January 1, 2006, under the modified prospective transition method, in which compensation cost was recognized beginning with the effective date (a) based on the requirements of ASC 718-10 for all share-based payments granted after the effective date and (b) based on the requirements of ASC 718-10 for all awards granted to employees prior to the effective date of ASC 718-10 that remain unvested on the effective date. The Company records share-based compensation expense for awards granted to non-employees in exchange for services at fair value in accordance with the provisions of ASC 505-50, "Equity Based" payment to non-employees. For the awards granted to non-employees, the Company will record compensation expenses equal to the fair value of the share options at the measurement date, which is determined to be the earlier of the performance commitment date or the service completion date. |
Loss per Common Share | Loss per Common Share ASC 260-10-45, “Earnings Per Share”, requires presentation of "basic" and "diluted" earnings per share on the face of the statements of operations for all entities with complex capital structures. Basic earnings per share are computed by dividing net income by the weighted average number of common shares outstanding for the period. Diluted earnings per share reflect the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted during the period. Dilutive securities having an anti-dilutive effect on diluted earnings per share are excluded from the calculation. In addition, the Company had a net loss during current period so dilutive securities would decrease negative EPS and have an anti-dilutive effect. |
Income Taxes | Income Taxes Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets, including tax loss and credit carry forwards, and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. Deferred income tax expense represents the change during the period in the deferred tax assets and deferred tax liabilities. The components of the deferred tax assets and liabilities are individually classified as current and non-current based on their characteristics. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. ASC 740-10-25, “Accounting for Uncertainty in Income Taxes”, is intended to clarify the accounting for uncertainty in income taxes recognized in a company's financial statements and prescribes the recognition and measurement of a tax position taken or expected to be taken in a tax return. ASC 740-10-25 also provides guidance on de-recognition, classification, interest and penalties, accounting in interim periods, disclosure and transition. Under ASC 740-10-25, evaluation of a tax position is a two-step process. The first step is to determine whether it is more-likely-than-not that a tax position will be sustained upon examination, including the resolution of any related appeals or litigation based on the technical merits of that position. The second step is to measure a tax position that meets the more-likely-than-not threshold to determine the amount of benefit to be recognized in the financial statements. A tax position is measured at the largest amount of benefit that is greater than 50 percent likely of being realized upon ultimate settlement. Tax positions that previously failed to meet the more-likely-than-not recognition threshold should be recognized in the first subsequent period in which the threshold is met. Previously recognized tax positions that no longer meet the more-likely-than-not criteria should be de-recognized in the first subsequent financial reporting period in which the threshold is no longer met. |
Revenue Recognition | Revenue Recognition In accordance with the requirements ASC topic 605 "Revenue Recognition", revenues are recognized at such time as (1) persuasive evidence of an arrangement exists, (2) delivery has occurred or services have been rendered, (3) the seller's price to the buyer is fixed or determinable and (4) collectability is reasonably assured. Specifically, oil and gas sales are recognized as income at such time as the oil and gas are delivered to a viable third party purchaser at an agreed price. |
Recent Accounting Standards | Recent Accounting Standards In August 2014, the FASB issued ASU No. 2014-15, Presentation of Financial Statements – Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern (“ASU 2014-15”). ASU 2014-15 provides guidance about management’s responsibility to evaluate whether there is substantial doubt about an entity’s ability to continue as a going concern and sets rules for how this information should be disclosed in the financial statements. ASU 2014-15 is effective for annual periods ending after December 15, 2016 and interim periods thereafter. The Company adopted ASU 2014-15 prospectively for the annual period ending December 31, 2016. Pursuant to ASU 2014-15, the Company is required to consider whether there are adverse conditions or events that raise substantial doubt about the Company’s ability to continue as a going concern within one year after the date that the financial statements are issued and the probability that management’s plans will mitigate the adverse conditions or events (if any). Adverse conditions or events would include, but not be limited to, negative financial trends (such as recurring operating losses, working capital deficiencies, or insufficient liquidity), a need to restructure outstanding debt to avoid default, and industry developments (for example commodity price declines and regulatory changes). |
SUMMARY OF SIGNIFICANT ACCOUN24
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Mar. 31, 2016 | |
Accounting Policies [Abstract] | |
Estimated amortization of intangible assets | March 31, 2017 and thereafter $ - |
DEPOSITS AND PREPAID EXPENSES (
DEPOSITS AND PREPAID EXPENSES (Tables) | 12 Months Ended |
Mar. 31, 2016 | |
Notes to Financial Statements | |
Deposits and Prepaid Expenses | March 31, 2016 March 31, 2015 Deposits on wells $ 279,400 $ 279,400 Prepaid consulting fees 150,000 100,000 429,400 379,400 Less: Accumulated Amortization on Prepaid Consulting Fees (37,131 ) (10,454 ) Less: Impairment of Well Deposits and Consulting Fees (392,269 ) — $ 0 $ 368,946 |
PROPERTY AND EQUIPMENT (Tables)
PROPERTY AND EQUIPMENT (Tables) | 12 Months Ended |
Mar. 31, 2016 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | March 31, March 31, Office Equipment $ 41,778 $ 41,778 Vehicles 22,657 22,657 64,435 64,435 Less: Accumulated depreciation (50,843 ) (46,310 ) Total $ 13,592 $ 18,125 |
INTELLECTUAL PROPERTY RIGHTS (T
INTELLECTUAL PROPERTY RIGHTS (Tables) | 12 Months Ended |
Mar. 31, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Summary of intellectual property rights | March 31, 2016 March 31, 2015 Intelli-well $ 425,850 $ 425,850 Less: accumulated amortization (404,558 ) (372,616 ) Less: impairment (21,292 ) — Total $ -0- $ 53,234 |
OIL AND GAS PROPERTY ACTIVITY (
OIL AND GAS PROPERTY ACTIVITY (Tables) | 12 Months Ended |
Mar. 31, 2016 | |
Extractive Industries [Abstract] | |
Producing oil and gas properties | March 31, 2016 March 31, 2015 Lincoln County, Oklahoma $ 111,402 $ 111,402 Lipscomb County, Texas 250,082 250,082 Miller County, Arkansas 139,909 139,909 Ward Petroleum Assets 290,500 290,500 Kensington Energy Assets 120,000 120,000 Other Properties 325,185 325,185 Total Properties 1,237,078 1,237,078 Asset retirement cost, net 34,780 37,676 Property impairments (609,534 ) (481,072 ) Less: Depletion (587,508 ) (554,399 ) Net $ 74,816 $ 239,283 |
ACCOUNTS PAYABLE AND ACCRUED 29
ACCOUNTS PAYABLE AND ACCRUED LIABILITIES (Tables) | 12 Months Ended |
Mar. 31, 2016 | |
Payables and Accruals [Abstract] | |
Accounts payable and accrued liabilities | March 31, 2016 March 31, 2015 Accounts payable $ 130,747 $ 371,721 Accrued interest 63,944 62,030 Total $ 194,691 $ 433,751 |
NOTES PAYABLE (Tables)
NOTES PAYABLE (Tables) | 12 Months Ended |
Mar. 31, 2016 | |
Debt Disclosure [Abstract] | |
Summary of notes payable | March 31, 2016 March 31, 2015 On May 8, 2006, the Company entered into a convertible note payable agreement with a shareholder in the amount of $100,000. The note carries an interest rate of 10% per annum and matures of November 8, 2006. The note holder has the right to convert the note and accrued interest at a rate of $0.01 per share. The value of this conversion feature was treated as a loan discount for the full $100,000 of the loan and was amortized to interest expense over the life of the loan. During the year ended March 31, 2016, the Company issued 700,000 shares of common stock for the conversion of $100 of principal. Interest in the amount of $175 and $180 was accrued on this note during the year ended March 31, 2016 and 2015, respectively. The maturity of this note has been extended until April 1, 2018. The outstanding principal balance and all outstanding interest was converted into 500,000 shares on June 15, 2018. $ 1,700 $ 1,800 On November 11, 2008, the Company issued a convertible promissory note to an investor in the amount of $50,000. The current balance of the note is $30,000. The note carries an interest rate of 10% per annum and a maturity date of October 1, 2009. The note holder has the right to convert the note and accrued interest into shares of the Company’s common stock at a rate of $3.00 per share. The discount is being amortized to interest expense over the life of the note via the effective interest method. Interest in the amount of $3,000 and $3,000 was accrued on this note during the year ended March 31, 2015 and 2014, respectively. Accrued interest was $17,884 and $14,877 respectively at March 31, 2016 and 2015. This remaining balance of $30,000 on this promissory note and the promissory note issued in the amount of $50,000 on January 27, 2009 and accrued interest, was settled on March 9, 2018 for $2,500 plus the issuance of 600,000 shares of Common Stock 30,000 30,000 On January 27, 2009, the Company issued a promissory note to an investor in the amount of $50,000. The note carries an interest rate of 10% per annum and matures on December 15, 2009. In addition to the note payable, the Company issued 1,000,000 shares of common stock to the note holder. The shares are considered a discount to the note payable. The shares are value using the closing market price on the date the note was signed and have a value of $25,000. The discount will be amortized over the life of the note via the effective interest method. Accrued interest was $35,877 and $30,863 at March 31, 2016 and 2015 respectively. This note and the promissory note issued in the amount of $50,000 on November 11, 2008, with a remaining balance of $30,000 plus accrued interest was settled on March 9, 2018 for $2,500 plus the issuance of 600,000 shares of Common Stock. 50,000 50,000 On November 28, 2006, Oiltek, of which the Company has a majority interest in, issued a convertible note payable in the amount of $2,500. This note bears interest at a rate of 8% per annum and matures on October 1, 2007. The principal amount of the note and accrued interest are convertible into shares of the Company’s common stock at a price of $0.01 per share. A beneficial conversion feature in the amount of $2,500 was recorded as a discount to the note and was amortized to interest expense during the period ended December 31, 2006. Interest in the amount of $200 and $200 was accrued on this note during the twelve months ended March 31, 2016 and 2015, respectively. The maturity date of this note has been extended until Apri1 1, 2018. The outstanding principal balance and all accrued interest was converted into 950,000 shares on April 19, 2018. 2,500 2,500 On November 28, 2006, Oiltek, of which the Company has a majority interest in, issued a convertible note payable in the amount of $5,000. This note bears interest at a rate of 8% per annum and matured on October 1, 2007. The principal amount of the note and accrued interest are convertible into shares of the Company’s common stock at a price of $0.01 per share. A beneficial conversion feature in the amount of $5,000 was recorded as a discount to the note and was amortized to interest expense during the period ended December 31, 2006. Interest in the amount of $400 and $400 was accrued on this note during the twelve months ended March 31, 2016 and 2015, respectively. The maturity date of this note has been extended until Apri1 1, 2018. The outstanding principal balance and all accrued interest was converted into 400,000 shares on April 19, 2018. 5,000 5,000 On September 29, 2014, the Company issued two promissory notes note payable in the total amount of $60,000. These notes bear interest at a rate of 5% per annum, matured on January 1, 2014, and were extended until December 1, 2016. Accrued interest as of March 31, 2015 and March 31, 2016 was $1,504 and 4,512. The principal and accrued interest on these notes were settled in March 2018 for $5,000. 60,000 60,000 On January 1, 2011 the Company issued a promissory note payable in the amount of $250,000. This note bears interest at a rate of 8% per annum and matured on January 1, 2014, and were extended until April 1, 2015. The principal amount of the note and accrued interest are convertible into shares of the Company’s common stock at a price of $0.01 per share. A beneficial conversion feature in the amount of $95,000 was recorded as a discount to the note and is being amortized to interest expense. A discount of $-0- and $94,050 was deducted for the years ended March 31, 2015 and 2014 respectively. Interest in the amount of $4,010 and $17,945 was accrued on this note during the twelve months ended March 31, 2015 and 2014, respectively. Accrued interest was $5,858 and $1,847 at March 31, 2015. During the year ended March 31, 2016, we settled $50,000 of this note plus accrued interest for $10,000 and issued 25 shares of our Series B Preferred Stock for the remaining $25,000 plus accrued interest 0 75,000 Total outstanding $ 149,200 $ 224,300 |
Schedule of notes payable with classification | Note Unamortized Net of March 31, 2016: Amount Discounts Discount Notes payable – long-term portion $ — $ — $ — Notes payable – current portion 149,200 — 149,200 Total $ 149,200 $ — $ 149,200 Note Unamortized Net of March 31, 2015: Amount Discounts Discount Notes payable – long-term portion $ 224,300 $ — $ 224,300 Notes payable – current portion — — — Total $ 224,300 $ — $ 224,300 |
Minimum future principal payments due under note payable | 2017 $ 149,200 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Mar. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Income from continuing operations before income taxes | Twelve Months Ended March 31, 2016 Twelve Months Ended March 31, 2015 Computed “expected” income tax benefit at approximately 34% $ (10,802,086 ) $ (10,471,510 ) Change in valuation allowance $ 10,802,086 $ 10,471,510 |
ASC 932-235-55 SUPPLEMENTAL D32
ASC 932-235-55 SUPPLEMENTAL DISCLOSURES (Tables) | 12 Months Ended |
Mar. 31, 2016 | |
Asc 932-235-55 Supplemental Disclosures | |
Summary of aggregate capitalized costs related to natural gas and oil producing activities | March 31, 2016 March 31, 2015 Natural gas and oil properties and related equipment: Proven $ 1,271,858 $ 1,274,754 Unproven 1,867,183 1,867,183 Accumulated depreciation, depletion, and impairment (2,887,225 ) (1,035,471 ) Net capitalized costs $ 251,816 $ 2,016,466 |
Summary of costs incurred in natural gas and oil property acquisition, exploration and development activities | March 31, 2016 March 31, 2015 Acquisition of properties $ — $ 120,000 Development costs — -0- Total costs incurred $ — $ 120,000 |
Results of Operations for Oil and Gas Producing Activities Disclosure | March 31, 2016 March 31, 2015 Production revenues $ 52,933 $ 110,371 Production costs (66,081 ) (100,060 ) Depreciation and depletion expense (69,579 ) (74,411 ) $ (82,727 ) $ (64,100 ) Imputed income tax provision (1) — — Results of operation for natural gas / oil producing activity $(82, 727) $ (64,100 ) |
Summary of natural gas and oil reserve quantities | Oil - bbls Proved reserves: Balance as of March 31, 2014 6,883 Production (567 ) Purchase of reserves-in-place 3,414 Technical Revision 338 Economic Revision (80 ) Balance as of March 31, 2015 9,988 Production (1,136 ) Purchase of reserves-in-place — Technical Revisions (1,039 ) Economic Revision (3,616 ) Balance as of March 31, 2016 5,275 Gas - mcf Proved reserves: Balance as of March 31, 2014 133,136 Production (9,470 ) Purchase of reserves-in-place 8,071 Technical Revision 17,957 Economic Revision — Balance as of March 31, 2015 149,694 Production (15,744 ) Purchase of reserves-in-place — Technical Revisions 4,270 Economic Revision (29,387 ) Balance as of March 31, 2016 108,833 |
Summary of standardized measure of discounted future net cash flows to estimating future results of operations | March 31, 2016 March 31, 2015 Future production revenue $ 428,105 $ 1,317,165 Future production costs (317,887 ) (675,670 ) Future development costs — — Future cash flows before income taxes 110,218 641,495 Future income tax — — Future net cash flows 110,218 641,495 Effect of discounting future annual cash flows at 10% (35,402 (253,043 ) Standard measure of discounted net cash flows $ 74,816 $ 388,452 |
Summary of standardized measure of discounted future net cash flows | March 31, 2016 March 31, 2015 Standardized measure of discount future net cash flows $ 74,816 $ 388,452 Proved natural oil and gas property, net of accumulated depreciation, depletion, and amortization, including impairment 74,816 239,283 Standardized measure of discount future net cash flows in excess of net carrying value of proved natural oil and gas properties $ — $ 149,169 |
SUMMARY OF SIGNIFICANT ACCOUN33
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Estimated amortization of intangible assets (Details) | Mar. 31, 2016USD ($) |
Accounting Policies [Abstract] | |
2017 and thereafter | $ 0 |
SUMMARY OF SIGNIFICANT ACCOUN34
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) - USD ($) | 2 Months Ended | 12 Months Ended | 276 Months Ended | ||||||||
Jul. 23, 2012 | Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2016 | May 09, 2014 | Mar. 19, 2014 | Apr. 10, 2013 | Sep. 28, 2012 | Nov. 16, 2011 | Sep. 22, 2007 | Jul. 22, 2005 | |
Authorized number of shares of common stock | 200,000,000 | 200,000,000 | 200,000,000 | 200,000,000 | 200,000,000 | 3,000,000,000 | 1,000,000,000 | ||||
Common stock authorized, par value | $ 0.001 | $ 0.001 | $ 0.001 | $ 0.001 | $ 0.001 | ||||||
Reverse split terms | 300 to 1 | ||||||||||
Percentage of interest | 75.60% | ||||||||||
Purchase price of interest in Oiltek | $ 50,000 | ||||||||||
Loss incurred from inception | $ (33,610,746) | ||||||||||
Working capital deficiency | $ 676,586 | 676,586 | |||||||||
Stockholders' Equity | (598,841) | $ 1,690,152 | (598,841) | ||||||||
Accounts at institutions insured by FDIC | 250,000 | 250,000 | |||||||||
Impaired in Proven Oil and Gas Properties | 128,462 | 128,462 | 128,462 | ||||||||
Impaired in Unproved Oil and Gas Properties | 1,690,183 | 0 | $ 1,690,183 | ||||||||
Acquisition costs | $ 120,000 | ||||||||||
Estimated useful lives; Office Equipment | 5 years | ||||||||||
Impairement on intellectual Property | $ 21,292 | ||||||||||
AFS | |||||||||||
Percentage of interest | 100.00% | ||||||||||
Weyer | |||||||||||
Percentage of interest | 100.00% |
RECEIVABLE FROM JOINT INTERES35
RECEIVABLE FROM JOINT INTERESTS (Details Narrative) - USD ($) | Mar. 31, 2016 | Mar. 31, 2015 |
Receivables [Abstract] | ||
Receivables from Joint Interests | $ 153,209 | $ 151,236 |
Unlikely collectability of receivable from joint interests amount | $ 153,209 | $ 131,236 |
DEPOSITS AND PREPAID EXPENSES -
DEPOSITS AND PREPAID EXPENSES - Deposits and Prepaid Expenses (Details) - USD ($) | Mar. 31, 2016 | Nov. 30, 2015 | Mar. 31, 2015 |
Notes to Financial Statements | |||
Deposits on wells | $ 0 | $ 279,400 | |
Prepaid consulting fees | 150,000 | $ 50,000 | 100,000 |
Deposits And Prepaid Expenses, Gross | 429,400 | 379,400 | |
Less: Accumulated amortization on prepaid fees | (37,131) | (10,454) | |
Less: Impairment of Well Deposits and Consulting Fees | (392,269) | 0 | |
Deposits and Prepaid Expenses, Net | $ 0 | $ 368,946 |
DEPOSITS AND PREPAID EXPENSES37
DEPOSITS AND PREPAID EXPENSES (Details Narrative) - USD ($) | Mar. 31, 2016 | Nov. 30, 2015 | Mar. 31, 2015 |
Notes to Financial Statements | |||
Deposits on wells | $ 0 | $ 279,400 | |
Prepaid consulting fees | 150,000 | $ 50,000 | $ 100,000 |
Deposits written off | $ 279,000 |
PROPERTY AND EQUIPMENT (Details
PROPERTY AND EQUIPMENT (Details) - USD ($) | Mar. 31, 2016 | Mar. 31, 2015 |
Total Gross | $ 64,435 | $ 64,435 |
Less: Accumulated depreciation | (50,843) | (46,310) |
Total | 13,592 | 18,125 |
Office Equipment | ||
Total Gross | 41,778 | 41,778 |
Vehicles | ||
Total Gross | $ 22,657 | $ 22,657 |
PROPERTY AND EQUIPMENT (Detai39
PROPERTY AND EQUIPMENT (Details Narrative) - USD ($) | 12 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Property, Plant and Equipment [Abstract] | ||
Depreciation expense | $ 4,533 | $ 4,532 |
INTELLECTUAL PROPERTY RIGHTS -
INTELLECTUAL PROPERTY RIGHTS - Summary of intellectual property rights (Details) - USD ($) | Mar. 31, 2016 | Mar. 31, 2015 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Intelli-well | $ 425,850 | $ 425,850 |
Less: accumulated amortization | (404,558) | (372,616) |
Less: impairment | (21,292) | 0 |
Total | $ 0 | $ 53,234 |
INTELLECTUAL PROPERTY RIGHTS (D
INTELLECTUAL PROPERTY RIGHTS (Details Narrative) - USD ($) | 12 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Amortization of intangible assets | $ 31,938 | $ 42,851 |
Impairement on intellectual Property | $ 21,292 |
OIL AND GAS PROPERTY ACTIVITY -
OIL AND GAS PROPERTY ACTIVITY - Producing oil and gas properties (Details) - USD ($) | Mar. 31, 2016 | Mar. 31, 2015 |
Ward Petroleum Assets | $ 290,500 | $ 290,500 |
Kensington Energy Assets | 120,000 | 120,000 |
Other Properties | 325,185 | 325,185 |
Total Properties | 1,237,078 | 1,237,078 |
Asset retirement obligation | 34,780 | 37,676 |
Property impairments | (609,534) | (481,072) |
Less: Depletion | (587,508) | (554,399) |
Net | 74,816 | 239,283 |
Lincoln County, Oklahoma | ||
Properties | 111,402 | 111,402 |
Lipscomb County, Texas | ||
Properties | 250,082 | 250,082 |
Miller County, Arkansas | ||
Properties | $ 139,909 | $ 139,909 |
ACCOUNTS PAYABLE AND ACCRUED 43
ACCOUNTS PAYABLE AND ACCRUED LIABILITIES - Accounts payable and accrued liabilities (Details) - USD ($) | Mar. 31, 2016 | Mar. 31, 2015 |
Payables and Accruals [Abstract] | ||
Accounts payable | $ 130,747 | $ 371,721 |
Accrued liabilities | 63,944 | 62,030 |
Total | $ 194,691 | $ 433,751 |
Notes Payable (Details)
Notes Payable (Details) - USD ($) | Mar. 31, 2016 | Mar. 31, 2015 |
Summary of notes payable | ||
Notes payable | $ 149,200 | $ 224,300 |
Convertible Debt [Member] | ||
Summary of notes payable | ||
Notes payable | 1,700 | 1,800 |
Convertible Promissory Note [Member] | ||
Summary of notes payable | ||
Notes payable | 30,000 | 30,000 |
Promissory Note [Member] | ||
Summary of notes payable | ||
Notes payable | 50,000 | 50,000 |
Convertible Debt Two [Member] | ||
Summary of notes payable | ||
Notes payable | 2,500 | 2,500 |
Convertible Debt Three [Member] | ||
Summary of notes payable | ||
Notes payable | 5,000 | 5,000 |
Promissory Note Two [Member] | ||
Summary of notes payable | ||
Notes payable | 60,000 | 60,000 |
Promissory Note Three [Member] | ||
Summary of notes payable | ||
Notes payable | $ 0 | $ 75,000 |
Notes Payable (Details 1)
Notes Payable (Details 1) - USD ($) | Mar. 31, 2016 | Mar. 31, 2015 |
Summary of notes payable | ||
Total | $ 149,200 | $ 224,300 |
Note Amount | ||
Summary of notes payable | ||
Notes payable - long-term portion | 0 | 224,300 |
Notes payable - current portion | 149,200 | 0 |
Total | 149,200 | 224,300 |
Unamortized Discounts | ||
Summary of notes payable | ||
Notes payable - long-term portion | 0 | 0 |
Notes payable - current portion | 0 | 0 |
Total | 0 | 0 |
Net Of Discount | ||
Summary of notes payable | ||
Notes payable - long-term portion | 0 | 224,300 |
Notes payable - current portion | 149,200 | 0 |
Total | $ 149,200 | $ 224,300 |
Notes Payable (Details 2)
Notes Payable (Details 2) | Mar. 31, 2016USD ($) |
Summary of minimum future principal payments | |
2,017 | $ 149,200 |
Total | $ 149,200 |
Notes Payable (Details Narrativ
Notes Payable (Details Narrative) | 12 Months Ended |
Mar. 31, 2016 | |
Convertible Debt [Member] | |
Notes payable | On May 8, 2006, the Company entered into a convertible note payable agreement with a shareholder in the amount of $100,000. The note carries an interest rate of 10% per annum and matures of November 8, 2006. The note holder has the right to convert the note and accrued interest at a rate of $0.01 per share. The value of this conversion feature was treated as a loan discount for the full $100,000 of the loan and was amortized to interest expense over the life of the loan. During the year ended March 31, 2016, the Company issued 700,000 shares of common stock for the conversion of $100 of principal. Interest in the amount of $175 and $180 was accrued on this note during the year ended March 31, 2016 and 2015, respectively. The maturity of this note has been extended until April 1, 2018. The outstanding principal balance and all outstanding interest was converted into 500,000 shares on June15, 2018. |
Convertible Promissory Note [Member] | |
Notes payable | On November 11, 2008, the Company issued a convertible promissory note to an investor in the amount of $50,000. The current balance of the note is $30,000. The note carries an interest rate of 10% per annum and a maturity date of October 1, 2009. The note holder has the right to convert the note and accrued interest into shares of the Company’s common stock at a rate of $3.00 per share. The discount is being amortized to interest expense over the life of the note via the effective interest method. Interest in the amount of $3,000 and $3,000 was accrued on this note during the year ended March 31, 2015 and 2014, respectively. Accrued interest was $17,884 and $14,877 respectively at March 31, 2016 and 2015. This remaining balance of $30,000 on this promissory note and the promissory note issued in the amount of $50,000 on January 27, 2009 and accrued interest, was settled on March 9, 2018 for $2,500 plus the issuance of 600,000 shares of Common Stock |
Promissory Note [Member] | |
Notes payable | On January 27, 2009, the Company issued a promissory note to an investor in the amount of $50,000. The note carries an interest rate of 10% per annum and matures on December 15, 2009. In addition to the note payable, the Company issued 1,000,000 shares of common stock to the note holder. The shares are considered a discount to the note payable. The shares are value using the closing market price on the date the note was signed and have a value of $25,000. The discount will be amortized over the life of the note via the effective interest method. Accrued interest was $35,877 and $30,863 at March 31, 2016 and 2015 respectively. This note and the promissory note issued in the amount of $50,000 on November 11, 2008, with a remaining balance of $30,000 plus accrued interest was settled on March 9, 2018 for $2,500 plus the issuance of 600,000 shares of Common Stock. |
Convertible Debt Two [Member] | |
Notes payable | On November 28, 2006, Oiltek, of which the Company has a majority interest in, issued a convertible note payable in the amount of $2,500. This note bears interest at a rate of 8% per annum and matures on October 1, 2007. The principal amount of the note and accrued interest are convertible into shares of the Company’s common stock at a price of $0.01 per share. A beneficial conversion feature in the amount of $2,500 was recorded as a discount to the note and was amortized to interest expense during the period ended December 31, 2006. Interest in the amount of $200 and $200 was accrued on this note during the twelve months ended March 31, 2016 and 2015, respectively. The maturity date of this note has been extended until Apri1 1, 2018. The outstanding principal balance and all accrued interest was converted into 950,000 shares on April 19, 2018. |
Convertible Debt Three [Member] | |
Notes payable | On November 28, 2006, Oiltek, of which the Company has a majority interest in, issued a convertible note payable in the amount of $5,000. This note bears interest at a rate of 8% per annum and matured on October 1, 2007. The principal amount of the note and accrued interest are convertible into shares of the Company’s common stock at a price of $0.01 per share. A beneficial conversion feature in the amount of $5,000 was recorded as a discount to the note and was amortized to interest expense during the period ended December 31, 2006. Interest in the amount of $400 and $400 was accrued on this note during the twelve months ended March 31, 2016 and 2015, respectively. The maturity date of this note has been extended until Apri1 1, 2018. The outstanding principal balance and all accrued interest was converted into 400,000 shares on April 19, 2018. |
Promissory Note Two [Member] | |
Notes payable | On September 29, 2014, the Company issued two promissory notes note payable in the total amount of $60,000. These notes bear interest at a rate of 5% per annum, matured on January 1, 2014, and were extended until December 1, 2016. Accrued interest as of March 31, 2015 and March 31, 2016 was $1,504 and 4,512. The principal and accrued interest on these notes were settled in March 2018 for $5,000. |
Promissory Note Three [Member] | |
Notes payable | On January 1, 2011 the Company issued a promissory note payable in the amount of $250,000. This note bears interest at a rate of 8% per annum and matured on January 1, 2014, and were extended until April 1, 2015. The principal amount of the note and accrued interest are convertible into shares of the Company’s common stock at a price of $0.01 per share. A beneficial conversion feature in the amount of $95,000 was recorded as a discount to the note and is being amortized to interest expense. A discount of $-0- and $94,050 was deducted for the years ended March 31, 2015 and 2014 respectively. Interest in the amount of $4,010 and $17,945 was accrued on this note during the twelve months ended March 31, 2015 and 2014, respectively. Accrued interest was $5,858 and $1,847 at March 31, 2015. During the year ended March 31, 2016, we settled $50,000 of this note plus accrued interest for $10,000 and issued 25 shares of our Series B Preferred Stock for the remaining $25,000 plus accrued interest |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details Narrative) - USD ($) | 12 Months Ended | |||
Mar. 31, 2016 | Mar. 31, 2015 | Nov. 30, 2015 | Mar. 31, 2013 | |
Preferred stock, value | $ 10 | $ 10 | ||
Stock dividends incurred | 40,000 | |||
Amount charged to operations in annual salary | 48,000 | |||
Amount of compensation paid to Mr. Rodriquez | 49,202 | |||
Balance of accrued and unpaid salaries | $ 205,462 | $ 211,317 | ||
Preferred Stock Series A | ||||
Shares of Preferred Stock issued to an officer/director as payment for promissory notes | 100 | |||
Value of promissory notes to an officer/director | $ 500,000 | |||
Preferred Stock conversion percentage, fully diluted shares outstanding after issuance | 40.00% | |||
Preferred Stock dividend payment percentage | 8.00% | |||
Stock dividends incurred | $ 40,000 | |||
Amount charged to operations in annual salary | 49,202 | |||
Amount of compensation paid to Mr. Rodriquez | $ 50,457 | |||
Preferred Stock Series B | ||||
Shares of Preferred Stock issued to an officer/director as payment for promissory notes | 1,625 | 1,983 | 50 | 2,000 |
Preferred Stock, par value | $ 1,000 | $ 1,000 | $ .10 | |
Preferred stock, value | $ 1,625,000 | $ 1,983,000 | $ 50,000 | $ 1,000 |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) | 12 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Income Tax Disclosure [Abstract] | ||
Income tax rate | 38.73% | 38.73% |
Computed "expected" income tax expense | $ (10,802,086) | $ (10,471,510) |
Change in valuation allowance | $ 10,802,086 | $ 10,471,510 |
INCOME TAXES (Details Narrative
INCOME TAXES (Details Narrative) | 12 Months Ended |
Mar. 31, 2016USD ($) | |
Income Tax Disclosure [Abstract] | |
Federal and State net operating loss carry forwards | $ 31,770,841 |
Valuation allowance reducing the net realizable benefits of deductible differences | $ 0 |
Operating loss expiration period | Dec. 31, 2029 |
STOCKHOLDERS' EQUITY - Preferre
STOCKHOLDERS' EQUITY - Preferred Stock (Details Narrative) - USD ($) | Oct. 13, 2015 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2018 | Nov. 30, 2015 | Oct. 05, 2015 | Mar. 31, 2013 |
Preferred stock dividends | $ 208,038 | $ 175,599 | |||||||||
Preferred stock dividends paid | $ 40,000 | ||||||||||
Common stock issued | 18,198,062 | 18,198,062 | 16,548,062 | ||||||||
Accrued balance due to Mr.Rodriguez | $ 205,462 | $ 205,462 | $ 211,317 | ||||||||
AFS | |||||||||||
Preferred stock, shares authorized | 5,000,000 | ||||||||||
Preferred stock, par value | $ 0.001 | ||||||||||
Preferred stock, Series A | |||||||||||
Preferred stock, shares authorized | 1,000,000 | 1,000,000 | 1,000,000 | ||||||||
Preferred stock, par value | $ 0.10 | $ 0.10 | $ 0.10 | ||||||||
Preferred stock, shares issued | 100 | 100 | 100 | ||||||||
Preferred stock, shares outstanding | 100 | 100 | 100 | ||||||||
Preferred stock dividends | $ 40,000 | $ 40,000 | |||||||||
Preferred stock dividends paid | 35,500 | 49,000 | |||||||||
Accrued balance due to Mr.Rodriguez | $ 37,450 | 37,450 | 32,950 | ||||||||
Liquidation preference | $ 537,450 | $ 537,450 | $ 532,950 | ||||||||
Liquidation preference per share | $ 5,374.5 | $ 5,374.5 | $ 5,329.5 | ||||||||
Preferred stock issued to officer/director on conversion of promissory notes, Shares | 100 | ||||||||||
Preferred stock issued to officer/director on conversion of promissory notes | $ 500,000 | ||||||||||
Fully diluted shares outstanding percentage | 51.00% | 51.00% | |||||||||
Dividend rate on preferred stock | 8.00% | ||||||||||
Preferred stock, Series A | AFS | |||||||||||
Preferred stock, shares authorized | 1,000 | ||||||||||
Preferred stock, shares outstanding | 50 | ||||||||||
Liquidation preference | $ 53,000 | ||||||||||
Liquidation preference per share | $ 1,060 | ||||||||||
Preferred stock sold amount to accredited investor | $ 50,000 | ||||||||||
Preferred stock shares sold to accredited investor | 50 | ||||||||||
Accrued interest | $ 3,000 | ||||||||||
Preferred stock, Series B | |||||||||||
Preferred stock, shares authorized | 2,000 | 2,000 | 2,000 | ||||||||
Preferred stock, par value | $ 0.10 | $ 0.10 | $ 0.10 | $ 0.10 | |||||||
Preferred stock, shares issued | 1,983 | 1,983 | 1,625 | 2,000 | |||||||
Preferred stock, shares outstanding | 1,983 | 1,983 | 1,625 | ||||||||
Preferred stock dividends | $ 165,038 | $ 135,599 | |||||||||
Liquidation preference | $ 1,983,000 | $ 1,983,000 | $ 1,625,000 | ||||||||
Liquidation preference per share | $ 1,000 | $ 1,000 | $ 1,000 | ||||||||
Dividend rate on preferred stock | 9.00% | ||||||||||
Preferred stock face amount | $ 1,000 | $ 1,000 | $ 1,000 | $ 1,000 | |||||||
Preferred stock sold amount to accredited investor | $ 23,000 | $ 85,000 | $ 75,000 | $ 100,000 | |||||||
Preferred stock shares sold to accredited investor | 23 | 85 | 75 | 100 | |||||||
Preferred stock, Series B | Consulting Services | |||||||||||
Preferred stock, shares issued | 50 | ||||||||||
Preferred stock face amount | $ 50,000 | ||||||||||
Common Stock for Accrued Interest | |||||||||||
Preferred stock, shares issued | 1,625 | ||||||||||
Common stock issued | 2,015,000 |
STOCKHOLDERS' EQUITY - Common S
STOCKHOLDERS' EQUITY - Common Stock (Details Narrative) - USD ($) | Dec. 15, 2015 | Nov. 09, 2015 | Jun. 25, 2015 | Apr. 02, 2015 | Mar. 27, 2015 | Dec. 26, 2014 | Dec. 01, 2014 | Apr. 25, 2014 | Mar. 31, 2016 | Mar. 31, 2015 | Mar. 25, 2015 | Apr. 10, 2013 | Sep. 28, 2012 | Nov. 16, 2011 | Jul. 22, 2005 |
Common stock, shares authorized | 200,000,000 | 200,000,000 | 200,000,000 | 200,000,000 | 3,000,000,000 | 1,000,000,000 | |||||||||
Common stock, par value | $ 0.001 | $ 0.001 | $ 0.001 | $ 0.001 | |||||||||||
Common stock, shares issued | 18,198,062 | 16,548,062 | |||||||||||||
Common stock, shares outstanding | 18,198,062 | 16,548,062 | |||||||||||||
Common stock issued for conversion of note payable, value | $ 28,000 | $ 52,500 | |||||||||||||
Common stock issued for services, value | $ 0 | $ 24,454 | |||||||||||||
Director | |||||||||||||||
Common stock issued for services, value | $ 12,000 | ||||||||||||||
Common stock issued for services, shares | 300,000 | ||||||||||||||
Preferred stock, Series B | |||||||||||||||
Common stock issued for accrued interest, Value | $ 61,600 | ||||||||||||||
Common stock issued for accrued interest, shares | 1,540,000 | ||||||||||||||
Technology Licensing Agreement | |||||||||||||||
Common stock, par value per share | $ 0.05 | ||||||||||||||
Common stock issued for services, value | $ 15,000 | ||||||||||||||
Common stock issued for services, shares | 300,000 | ||||||||||||||
Consulting Services | |||||||||||||||
Common stock issued for compensation, shares | 1,700,000 | 200,000 | |||||||||||||
Common stock issued for compensation, value | $ 85,000 | $ 14,000 | |||||||||||||
Common stock, par value per share | $ 0.05 | $ 0.07 | |||||||||||||
Promissory Note [Member] | |||||||||||||||
Common stock, par value per share | $ 0.05 | $ 0.04 | $ 0.04 | $ 0.04 | |||||||||||
Common stock issued for conversion of note payable, value | $ 32,500 | $ 28,000 | $ 26,000 | $ 20,000 | |||||||||||
Common stock issued for cash | $ 5,000 | $ 6,000 | |||||||||||||
Common stock issued for conversion of note payable, shares | 650,000 | 700,000 | 650,000 | 500,000 | |||||||||||
Credited amount on conversion of notes payable | $ 150,000 | $ 100 | $ 5,000 | $ 150,000 | |||||||||||
Gain (Loss) on conversion of notes payable | 207,500 | 27,070 | 244,972 | 215,000 | |||||||||||
Promissory note issued for settlement of account payable | $ 280,972 | ||||||||||||||
Accrued interest | $ 90,000 | $ 830 | $ 90,000 |
Technology license agreement (D
Technology license agreement (Details Narrative) | 12 Months Ended |
Mar. 31, 2016shares | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Shares exchanged for exclusive license agreement | 300,000 |
Percentage of net sales as royalty income | 3.00% |
Loss Per Share (Details Narrati
Loss Per Share (Details Narrative) - $ / shares | 12 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Earnings Per Share [Abstract] | ||
Net loss per share | $ 0.154 | $ 0.006 |
ASC 932-235-55 SUPPLEMENTAL D55
ASC 932-235-55 SUPPLEMENTAL DISCLOSURES (Details) - USD ($) | Mar. 31, 2016 | Mar. 31, 2015 |
Natural gas and oil properties and related equipment: | ||
Proven | $ 1,271,858 | $ 1,274,754 |
Unproven | 177,000 | 1,867,183 |
Accumulated depreciation, depletion, and impairment | (2,887,225) | (1,035,471) |
Net capitalized costs | $ 251,816 | $ 2,016,466 |
ASC 932-235-55 SUPPLEMENTAL D56
ASC 932-235-55 SUPPLEMENTAL DISCLOSURES (Details 1) - USD ($) | 12 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Summary of costs incurred in natural gas and oil property acquisition, exploration and development activities | ||
Acquisition of properties | $ 120,000 | |
Development costs | ||
Total costs incurred | $ 120,000 |
ASC 932-235-55 SUPPLEMENTAL D57
ASC 932-235-55 SUPPLEMENTAL DISCLOSURES (Details 2) - USD ($) | 12 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | ||
Summary of results of operations from natural gas and oil producing activities | |||
Production revenues | $ 52,933 | $ 110,371 | |
Production costs | (66,081) | (100,060) | |
Depreciation and depletion expense | (69,579) | (74,411) | |
Results of operation for natural gas / oil producing activity gross | (82,727) | (64,100) | |
Imputed income tax provision (1) | [1] | 0 | 0 |
Results of operation for natural gas / oil producing activity | $ (82,727) | $ (64,100) | |
[1] | For the year ended March 31, 2016, three customers, KROG Partners, Scissortail Energy and Ward Petroleum, individually accounted for 28% 20% and 16% of the Companys revenues respectively. For the year ended March 31, 2015, four customers, Scissortail Energy, KROG Partners, Rockwell Energy and Swift Energy, individually accounted for 33%, 14%, 11% and 11% of the Companys revenues, respectively. Except for the aforementioned customers, there was no other single customer who accounted for more than 10% of the Companys revenues for the year ended March 31, 2016 and 2015. |
ASC 932-235-55 SUPPLEMENTAL D58
ASC 932-235-55 SUPPLEMENTAL DISCLOSURES (Details 3) - bbl | 12 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Oil [Member] | ||
Summary of contains estimates of proved natural gas and oil reserves | ||
Beginning Balance | 9,998 | 6,883 |
Production | (1,136) | (567) |
Purchase of reserves-in-place | 0 | 3,414 |
Technical Revision | (1,039) | 338 |
Economic Revision | (3,616) | (80) |
Balance | 5,275 | 9,998 |
Gas [Member] | ||
Summary of contains estimates of proved natural gas and oil reserves | ||
Beginning Balance | 149,694 | 133,136 |
Production | (15,744) | (9,470) |
Purchase of reserves-in-place | 0 | 8,071 |
Technical Revision | 4,270 | 17,957 |
Economic Revision | (29,387) | 0 |
Balance | 108,833 | 149,694 |
ASC 932-235-55 SUPPLEMENTAL D59
ASC 932-235-55 SUPPLEMENTAL DISCLOSURES (Details 4) - USD ($) | 12 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Schedule presents the standardized measure of estimated discounted future net cash flows | ||
Future production revenue | $ 428,105 | $ 1,317,165 |
Future production costs | (317,887) | (675,670) |
Future development costs | 0 | 0 |
Future cash flows before income taxes | 110,218 | 641,495 |
Future income tax | 0 | 0 |
Future net cash flows | 110,218 | 641,495 |
Effect of discounting future annual cash flows at 10% | (35,402) | (253,043) |
Standard measure of discounted net cash flows | $ 74,816 | $ 388,452 |
ASC 932-235-55 SUPPLEMENTAL D60
ASC 932-235-55 SUPPLEMENTAL DISCLOSURES (Details 5) - USD ($) | 12 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Principal sources of change in standardized measure of discounted future net cash flow relating to prove oil and gas reserves | ||
Standardized measure of discount future net cash flows | $ 74,816 | $ 388,452 |
Proved natural oil and gas property, net of accumulated depreciation, depletion, and amortization, including impairment | 74,816 | 239,283 |
Standardized measure of discount future net cash flows in excess of net carrying value of proved natural oil and gas properties | $ 0 | $ 149,169 |
ASC 932-235-55 SUPPLEMENTAL D61
ASC 932-235-55 SUPPLEMENTAL DISCLOSURES (Details Narrative) - $ / shares | 12 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Oil [Member] | ||
Average Sales Price and Production Costs Per Unit of Production [Line Items] | ||
Weighted average wellhead price used in computing the Company's reserves | $ 80.60 | |
Gas [Member] | ||
Average Sales Price and Production Costs Per Unit of Production [Line Items] | ||
Weighted average wellhead price used in computing the Company's reserves | $ 3.34 | |
Oil [Member] | ||
Average Sales Price and Production Costs Per Unit of Production [Line Items] | ||
Weighted average wellhead price used in computing the Company's reserves | $ 42.10 | |
Gas [Member] | ||
Average Sales Price and Production Costs Per Unit of Production [Line Items] | ||
Weighted average wellhead price used in computing the Company's reserves | $ 1.824 |
SUBSEQUENT EVENTS (Details Narr
SUBSEQUENT EVENTS (Details Narrative) | Jan. 29, 2018USD ($) |
Convertible Promissory Note [Member] | |
Promissory Note | $ 230,000 |