Cover
Cover - shares | 3 Months Ended | |
Jun. 30, 2022 | Aug. 15, 2022 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | Jun. 30, 2022 | |
Document Fiscal Period Focus | Q1 | |
Document Fiscal Year Focus | 2022 | |
Current Fiscal Year End Date | --03-31 | |
Entity File Number | 1-31785 | |
Entity Registrant Name | MEXCO ENERGY CORPORATION | |
Entity Central Index Key | 0000066418 | |
Entity Tax Identification Number | 84-0627918 | |
Entity Incorporation, State or Country Code | CO | |
Entity Address, Address Line One | 415 West Wall Street | |
Entity Address, Address Line Two | Suite 475 | |
Entity Address, City or Town | Midland | |
Entity Address, State or Province | TX | |
Entity Address, Postal Zip Code | 79701 | |
City Area Code | (432) | |
Local Phone Number | 682-1119 | |
Title of 12(b) Security | Common Stock, par value $0.50 per share | |
Trading Symbol | MXC | |
Security Exchange Name | NYSEAMER | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 2,149,416 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Jun. 30, 2022 | Mar. 31, 2022 |
Current assets | ||
Cash and cash equivalents | $ 537,001 | $ 1,370,766 |
Accounts receivable: | ||
Oil and natural gas sales | 1,532,385 | 1,310,137 |
Trade | ||
Prepaid costs and expenses | 38,370 | 52,636 |
Total current assets | 2,107,756 | 2,733,539 |
Property and equipment, at cost | ||
Oil and gas properties, using the full cost method | 42,669,430 | 40,373,741 |
Other | 121,926 | 120,208 |
Accumulated depreciation, depletion and amortization | (30,748,176) | (30,361,047) |
Property and equipment, net | 12,043,180 | 10,132,902 |
Investment in limited liability company at cost | 300,000 | 275,000 |
Operating lease, right-of-use asset | 116,540 | 129,923 |
Other noncurrent assets | 114,006 | 13,156 |
Total assets | 14,681,482 | 13,284,520 |
Current liabilities | ||
Accounts payable and accrued expenses | 283,941 | 209,469 |
Operating lease liability, current | 54,806 | 54,294 |
Total current liabilities | 338,747 | 263,763 |
Long-term liabilities | ||
Operating lease liability, long-term | 61,734 | 75,629 |
Asset retirement obligations | 732,142 | 720,512 |
Total long-term liabilities | 793,876 | 796,141 |
Total liabilities | 1,132,623 | 1,059,904 |
Commitments and contingencies | ||
Stockholders’ equity | ||
Preferred stock - $1.00 par value;10,000,000 shares authorized; none outstanding | ||
Common stock - $0.50 par value; 40,000,000 shares authorized; 2,216,416 shares issued and 2,149,416 shares outstanding as of June 30, 2022 and March 31, 2022, respectively | 1,108,208 | 1,108,208 |
Additional paid-in capital | 8,159,553 | 8,133,982 |
Retained earnings | 4,627,099 | 3,328,427 |
Treasury stock, at cost (67,000 shares) | (346,001) | (346,001) |
Total stockholders’ equity | 13,548,859 | 12,224,616 |
Total liabilities and stockholders’ equity | $ 14,681,482 | $ 13,284,520 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Jun. 30, 2022 | Mar. 31, 2022 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value | $ 1 | $ 1 |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value | $ 0.50 | $ 0.50 |
Common stock, shares authorized | 40,000,000 | 40,000,000 |
Common stock, shares issued | 2,216,416 | 2,216,416 |
Common stock, shares outstanding | 2,149,416 | 2,149,416 |
Treasury stock, shares | 67,000 | 67,000 |
Consolidated Statements of Oper
Consolidated Statements of Operations (Unaudited) - USD ($) | 3 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Operating revenues: | ||
Total operating revenues | $ 2,449,973 | $ 1,264,198 |
Operating expenses: | ||
Production | 435,028 | 276,987 |
Accretion of asset retirement obligations | 7,519 | 7,058 |
Depreciation, depletion and amortization | 387,128 | 264,320 |
General and administrative | 318,530 | 308,167 |
Total operating expenses | 1,148,205 | 856,532 |
Operating income | 1,301,768 | 407,666 |
Other income (expense): | ||
Interest income | 35 | 59 |
Interest expense | (3,131) | (12,719) |
Net other expense | (3,096) | (12,660) |
Income before provision for income taxes | 1,298,672 | 395,006 |
Income tax | ||
Net income | $ 1,298,672 | $ 395,006 |
Income per common share: | ||
Basic: | $ 0.60 | $ 0.19 |
Diluted: | $ 0.59 | $ 0.19 |
Weighted average common shares outstanding: | ||
Basic: | 2,149,416 | 2,076,756 |
Diluted: | 2,216,742 | 2,119,955 |
Oil Sales [Member] | ||
Operating revenues: | ||
Total operating revenues | $ 1,559,321 | $ 987,103 |
Natural Gas Sales [Member] | ||
Operating revenues: | ||
Total operating revenues | 856,792 | 268,462 |
Other [Member] | ||
Operating revenues: | ||
Total operating revenues | $ 33,860 | $ 8,633 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Stockholders' Equity (Unaudited) - USD ($) | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Treasury Stock [Member] | Total |
Beginning balance, value at Mar. 31, 2021 | $ 1,071,833 | $ 7,624,214 | $ 473,361 | $ (346,001) | $ 8,823,407 |
Net income | 395,006 | 395,006 | |||
Stock based compensation | 13,865 | 13,865 | |||
Issuance of stock through options exercised | 2,500 | 31,500 | 34,000 | ||
Ending balance, value at Jun. 30, 2021 | 1,074,333 | 7,669,579 | 868,367 | (346,001) | 9,266,278 |
Beginning balance, value at Mar. 31, 2022 | 1,108,208 | 8,133,982 | 3,328,427 | (346,001) | $ 12,224,616 |
Beginning balance, shares at Mar. 31, 2022 | 2,216,416 | ||||
Beginning balance, held in treasury, shares at Mar. 31, 2022 | (67,000) | ||||
Net income | 1,298,672 | $ 1,298,672 | |||
Stock based compensation | 25,571 | $ 25,571 | |||
Common stock shares, issued | |||||
Common stock shares, held in treasury, Acquisitions, shares | |||||
Ending balance, value at Jun. 30, 2022 | $ 1,108,208 | $ 8,159,553 | $ 4,627,099 | $ (346,001) | $ 13,548,859 |
Ending balance, shares at Jun. 30, 2022 | 2,216,416 | ||||
Ending balance, held in treasury, shares at Jun. 30, 2022 | (67,000) | ||||
Common stock shares, outstanding at Jun. 30, 2022 | 2,149,416 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 3 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Cash flows from operating activities: | ||
Net income | $ 1,298,672 | $ 395,006 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Stock-based compensation | 25,571 | 13,865 |
Depreciation, depletion and amortization | 387,128 | 264,320 |
Accretion of asset retirement obligations | 7,519 | 7,058 |
Amortization of debt issuance costs | 3,131 | 3,131 |
Changes in operating assets and liabilities | ||
Increase in accounts receivable | (222,248) | (68,135) |
Decrease in prepaid expenses | 14,266 | 10,530 |
Decrease (increase) in right-of-use asset | 13,384 | (148,881) |
(Decrease) increase in accounts payable and accrued expenses | (12,364) | 40,918 |
Settlement of asset retirement obligations | (6,077) | (291) |
(Decrease) increase in operating lease liability | (13,384) | 148,533 |
Net cash provided by operating activities | 1,495,598 | 666,054 |
Cash flows from investing activities: | ||
Additions to oil and gas properties | (2,320,974) | (302,976) |
Additions to other property and equipment | (1,718) | |
Investment in limited liability company at cost | (25,000) | |
Drilling refund | 18,329 | |
Proceeds from sale of oil and gas properties and equipment | 5,863 | |
Net cash used in investing activities | (2,329,363) | (297,113) |
Cash flows from financing activities: | ||
Proceeds from exercise of stock options | 34,000 | |
Reduction of long-term debt | (480,000) | |
Proceeds from long-term debt | 100,000 | |
Net cash used in financing activities | (346,000) | |
Net (decrease) increase in cash and cash equivalents | (833,765) | 22,941 |
Cash and cash equivalents at beginning of period | 1,370,766 | 57,813 |
Cash and cash equivalents at end of period | 537,001 | 80,754 |
Supplemental disclosure of cash flow information: | ||
Cash paid for interest | 10,040 | |
Non-cash investing and financing activities: | ||
Asset retirement obligations | 14,668 | 3,329 |
Operating lease – right of use asset and associated liabilities | $ 165,007 |
Nature of Operations
Nature of Operations | 3 Months Ended |
Jun. 30, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Nature of Operations | 1. Nature of Operations Mexco Energy Corporation (a Colorado corporation) and its wholly owned subsidiaries, Forman Energy Corporation (a New York corporation), Southwest Texas Disposal Corporation (a Texas corporation) and TBO Oil & Gas, LLC (a Texas limited liability company) (collectively, the “Company”) are engaged in the acquisition, exploration, development and production of crude oil, natural gas, condensate and natural gas liquids (“NGLs”). Most of the Company’s oil and gas interests are centered in West Texas and Southeastern New Mexico; however, the Company owns producing properties and undeveloped acreage in fourteen states. All of Company’s oil and gas interests are operated by others. |
Basis of Presentation and Signi
Basis of Presentation and Significant Accounting Policies | 3 Months Ended |
Jun. 30, 2022 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Significant Accounting Policies | 2. Basis of Presentation and Significant Accounting Policies Principles of Consolidation Estimates and Assumptions Interim Financial Statements Investments The Company accounts for investments of less than 1% in limited liability companies at cost. |
Asset Retirement Obligations
Asset Retirement Obligations | 3 Months Ended |
Jun. 30, 2022 | |
Asset Retirement Obligation Disclosure [Abstract] | |
Asset Retirement Obligations | 3. Asset Retirement Obligations The Company’s asset retirement obligations (“ARO”) relate to the plugging of wells, the removal of facilities and equipment, and site restoration on oil and gas properties. The fair value of a liability for an ARO is recorded in the period in which it is incurred, discounted to its present value using the credit adjusted risk-free interest rate, and a corresponding amount capitalized by increasing the carrying amount of the related long-lived asset. The liability is accreted each period until the liability is settled or the well is sold, at which time the liability is removed. The related asset retirement cost is capitalized as part of the carrying amount of our oil and natural gas properties. The ARO is included on the consolidated balance sheets with the current portion being included in the accounts payable and other accrued expenses. The following table provides a rollforward of the AROs for the first three months of fiscal 2022: Schedule of Rollforward of Asset Retirement Obligations Carrying amount of asset retirement obligations as of April 1, 2022 $ 735,512 Liabilities incurred 14,668 Liabilities settled (10,557 ) Accretion expense 7,519 Carrying amount of asset retirement obligations as of June 30, 2022 747,142 Less: Current portion 15,000 Non-Current asset retirement obligation $ 732,142 |
Long Term Debt
Long Term Debt | 3 Months Ended |
Jun. 30, 2022 | |
Debt Disclosure [Abstract] | |
Long Term Debt | 4. Long Term Debt On December 28, 2018, the Company entered into a loan agreement (the “Agreement”) with West Texas National Bank (“WTNB”), which originally provided for a credit facility of $ 1,000,000 December 28, 2021 On February 28, 2020, the Agreement was amended to increase the credit facility to $ 2,500,000 March 28, 2023 1,500,000 Under the Agreement, interest on the facility accrues at a rate equal to the prime rate as quoted in the Wall Street Journal plus one-half of one percent ( 0.5 the Company will pay an unused commitment fee in an amount equal to one-half of one percent (0.5%) times the daily average of the unadvanced amount of the commitment. 1,500,000 No principal payments are anticipated to be required through the maturity date of the credit facility, March 28, 2023 .5 5,000 34,532 .1 2,500 3,125 12,266 Amounts borrowed under the Agreement are collateralized by the common stock of the Company’s wholly owned subsidiaries and substantially all of the Company’s oil and gas properties. The Agreement contains customary covenants for credit facilities of this type including limitations on change in control, disposition of assets, mergers and reorganizations. The Company is also obligated to meet certain financial covenants under the Agreement and requires senior debt to earnings before interest, taxes, depreciation and amortization (“EBITDA”) ratios (Senior Debt/EBITDA) less than or equal to 4.00 to 1.00 measured with respect to the four trailing quarters and minimum interest coverage ratios (EBITDA/Interest Expense) of 2.00 to 1.00 for each quarter. In addition, this Agreement prohibits the Company from paying cash dividends on its common stock without prior written permission of WTNB. The Agreement does not permit the Company to enter into hedge agreements covering crude oil and natural gas prices without prior WTNB approval. There was no balance outstanding on the credit facility as of June 30, 2022. |
Stock-based Compensation
Stock-based Compensation | 3 Months Ended |
Jun. 30, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Stock-based Compensation | 5. Stock-based Compensation The Company recognized compensation expense of $ 25,571 13,865 188,537 2.14 The following table is a summary of stock options activity for the three months ended June 30, 2022: Summary of Activity of Stock Options Number of Shares Weighted Average Exercise Price Per Share Weighted Aggregate Average Remaining Contract Life Intrinsic Value Outstanding at April 1, 2022 114,250 $ 5.51 7.40 $ 1,221,670 Granted - - Exercised - - Forfeited or Expired - - Outstanding at June 30, 2022 114,250 $ 5.51 7.15 $ 1,334,778 Vested at June 30, 2022 52,750 $ 4.68 5.99 $ 660,023 Exercisable at June 30, 2022 52,750 $ 4.68 5.99 $ 660,023 During the three months ended June 30, 2022 and 2021, no During the three months ended June 30, 2022, no 5,000 15,036 34,000 No forfeiture rate is assumed for stock options granted to directors or employees due to the forfeiture rate history for these types of awards. During the three months ended June 30, 2022 and 2021, there were no Outstanding options at June 30, 2022 expire between August 2024 July 2031 3.34 8.51 |
Leases
Leases | 3 Months Ended |
Jun. 30, 2022 | |
Leases | |
Leases | 6. Leases The Company leases approximately 4,160 1,112 36 In June 2020, in exchange for a reduction in rent for the months of June and July 2020, the Company agreed to a 2-month extension to its current lease agreement at the regular monthly rate extending its current lease expiration date to July 2021. In June 2021, the Company agreed to extend its current lease at a flat (unescalated) rate for 36 months. July 31, 2024 The Company determines an arrangement is a lease at inception. Operating leases are recorded in operating lease right-of-use asset, operating lease liability, current, and operating lease liability, long-term on the consolidated balance sheets. Operating lease right-of-use assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent its obligation to make lease payments arising from the lease. Operating lease assets and liabilities are recognized at the commencement date based on the present value of lease payments over the lease term. As the Company’s lease does not provide an implicit rate, the Company uses the incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. The incremental borrowing rate used at adoption was 3.75 The balance sheets classification of lease assets and liabilities was as follows: Schedule of Operating Lease Assets and Liabilities June 30, 2022 Assets Operating lease right-of-use asset, beginning balance $ 129,923 Current period amortization (13,383 ) Total operating lease right-of-use asset $ 116,540 Liabilities Operating lease liability, current $ 54,806 Operating lease liability, long term 61,734 Total lease liabilities $ 116,540 Future minimum lease payments as of June 30, 2022 under non-cancellable operating leases are as follows: Schedule of Future Minimum Lease Payments Lease Obligation Fiscal Year Ended March 31, 2023 43,680 Fiscal Year Ended March 31, 2024 58,240 Fiscal Year Ended March 31, 2025 19,413 Total lease payments $ 121,333 Less: imputed interest (4,793 ) Operating lease liability 116,540 Less: operating lease liability, current (54,806 ) Operating lease liability, long term $ 61,734 Net cash paid for our operating lease for the three months ended June 30, 2022 and 2021 was $ 10,667 10,929 3,893 5,200 |
Income Taxes
Income Taxes | 3 Months Ended |
Jun. 30, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 7. Income Taxes A valuation allowance for deferred tax assets, including net operating losses, is recognized when it is more likely than not that some or all of the benefit from the deferred tax asset will not be realized. To assess that likelihood, we use estimates and judgment regarding our future taxable income, and we consider the tax consequences in the jurisdiction where such taxable income is generated, to determine whether a valuation allowance is required. Such evidence can include our current financial position, our results of operations, both actual and forecasted, the reversal of deferred tax liabilities, and tax planning strategies as well as the current and forecasted business economics of our industry. Based on the material write-downs of the carrying value of our oil and natural gas properties during fiscal 2016, we are in a net deferred tax asset position as of June 30, 2022. Our deferred tax asset is $ 526,846 526,846 |
Related Party Transactions
Related Party Transactions | 3 Months Ended |
Jun. 30, 2022 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | 8. Related Party Transactions Related party transactions for the Company primarily relate to shared office expenditures in addition to administrative and operating expenses paid on behalf of the principal stockholder. The total billed to and reimbursed by the stockholder for the quarters ended June 30, 2022 and 2021 was $ 10,085 12,768 3,893 4,045 |
Income Per Common Share
Income Per Common Share | 3 Months Ended |
Jun. 30, 2022 | |
Income per common share: | |
Income Per Common Share | 9. Income Per Common Share The following is a reconciliation of the number of shares used in the calculation of basic and diluted net income per share for the three-month periods ended June 30, 2022 and 2021. Schedule of Reconciliation of Basic and Diluted Net Income (loss) Per Share 2022 2021 Net income $ 1,298,672 $ 395,006 Shares outstanding: Weighted average common shares outstanding – basic 2,149,416 2,076,756 Effect of the assumed exercise of dilutive stock options 67,326 43,199 Weighted average common shares outstanding – dilutive 2,216,742 2,119,955 Income per common share: Basic $ 0.60 $ 0.19 Diluted $ 0.59 $ 0.19 For the three months ended June 30, 2022 and 2021, no |
Subsequent Events
Subsequent Events | 3 Months Ended |
Jun. 30, 2022 | |
Subsequent Events [Abstract] | |
Subsequent Events | 10. Subsequent Events In July 2022, Mexco expended approximately $ 300,000 In July and August 2022, Mexco expended approximately $ 768,000 In July and August 2022, Mexco expended approximately $ 377,000 In August 2022, Mexco expended approximately $ 33,000 The Company completed a review and analysis of all events that occurred after the consolidated balance sheet date to determine if any such events must be reported and has determined that there are no other subsequent events to be disclosed. |
Basis of Presentation and Sig_2
Basis of Presentation and Significant Accounting Policies (Policies) | 3 Months Ended |
Jun. 30, 2022 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | Principles of Consolidation |
Estimates and Assumptions | Estimates and Assumptions |
Interim Financial Statements | Interim Financial Statements |
Investments | Investments The Company accounts for investments of less than 1% in limited liability companies at cost. |
Asset Retirement Obligations (T
Asset Retirement Obligations (Tables) | 3 Months Ended |
Jun. 30, 2022 | |
Asset Retirement Obligation Disclosure [Abstract] | |
Schedule of Rollforward of Asset Retirement Obligations | The following table provides a rollforward of the AROs for the first three months of fiscal 2022: Schedule of Rollforward of Asset Retirement Obligations Carrying amount of asset retirement obligations as of April 1, 2022 $ 735,512 Liabilities incurred 14,668 Liabilities settled (10,557 ) Accretion expense 7,519 Carrying amount of asset retirement obligations as of June 30, 2022 747,142 Less: Current portion 15,000 Non-Current asset retirement obligation $ 732,142 |
Stock-based Compensation (Table
Stock-based Compensation (Tables) | 3 Months Ended |
Jun. 30, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Summary of Activity of Stock Options | The following table is a summary of stock options activity for the three months ended June 30, 2022: Summary of Activity of Stock Options Number of Shares Weighted Average Exercise Price Per Share Weighted Aggregate Average Remaining Contract Life Intrinsic Value Outstanding at April 1, 2022 114,250 $ 5.51 7.40 $ 1,221,670 Granted - - Exercised - - Forfeited or Expired - - Outstanding at June 30, 2022 114,250 $ 5.51 7.15 $ 1,334,778 Vested at June 30, 2022 52,750 $ 4.68 5.99 $ 660,023 Exercisable at June 30, 2022 52,750 $ 4.68 5.99 $ 660,023 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Jun. 30, 2022 | |
Leases | |
Schedule of Operating Lease Assets and Liabilities | The balance sheets classification of lease assets and liabilities was as follows: Schedule of Operating Lease Assets and Liabilities June 30, 2022 Assets Operating lease right-of-use asset, beginning balance $ 129,923 Current period amortization (13,383 ) Total operating lease right-of-use asset $ 116,540 Liabilities Operating lease liability, current $ 54,806 Operating lease liability, long term 61,734 Total lease liabilities $ 116,540 |
Schedule of Future Minimum Lease Payments | Future minimum lease payments as of June 30, 2022 under non-cancellable operating leases are as follows: Schedule of Future Minimum Lease Payments Lease Obligation Fiscal Year Ended March 31, 2023 43,680 Fiscal Year Ended March 31, 2024 58,240 Fiscal Year Ended March 31, 2025 19,413 Total lease payments $ 121,333 Less: imputed interest (4,793 ) Operating lease liability 116,540 Less: operating lease liability, current (54,806 ) Operating lease liability, long term $ 61,734 |
Income Per Common Share (Tables
Income Per Common Share (Tables) | 3 Months Ended |
Jun. 30, 2022 | |
Income per common share: | |
Schedule of Reconciliation of Basic and Diluted Net Income (loss) Per Share | The following is a reconciliation of the number of shares used in the calculation of basic and diluted net income per share for the three-month periods ended June 30, 2022 and 2021. Schedule of Reconciliation of Basic and Diluted Net Income (loss) Per Share 2022 2021 Net income $ 1,298,672 $ 395,006 Shares outstanding: Weighted average common shares outstanding – basic 2,149,416 2,076,756 Effect of the assumed exercise of dilutive stock options 67,326 43,199 Weighted average common shares outstanding – dilutive 2,216,742 2,119,955 Income per common share: Basic $ 0.60 $ 0.19 Diluted $ 0.59 $ 0.19 |
Basis of Presentation and Sig_3
Basis of Presentation and Significant Accounting Policies (Details Narrative) | 3 Months Ended |
Jun. 30, 2022 | |
Accounting Policies [Abstract] | |
Cost method investments, percentage description | The Company accounts for investments of less than 1% in limited liability companies at cost. |
Schedule of Rollforward of Asse
Schedule of Rollforward of Asset Retirement Obligations (Details) - USD ($) | 3 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Mar. 31, 2022 | |
Asset Retirement Obligation Disclosure [Abstract] | |||
Asset Retirement Obligation, Beginning Balance | $ 735,512 | ||
Asset Retirement Obligation, Liabilities Incurred | 14,668 | ||
Asset Retirement Obligation, Liabilities Settled | (10,557) | ||
Asset Retirement Obligation, Accretion Expense | 7,519 | $ 7,058 | |
Asset Retirement Obligation, Ending Balance | 747,142 | ||
Asset Retirement Obligation, Current | 15,000 | ||
Asset Retirement Obligations, Noncurrent | $ 732,142 | $ 720,512 |
Long Term Debt (Details Narrati
Long Term Debt (Details Narrative) - USD ($) | 3 Months Ended | ||
Feb. 28, 2020 | Dec. 28, 2018 | Jun. 30, 2022 | |
Loan Agreement [Member] | |||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||
Debt instrument covenant description | The Agreement contains customary covenants for credit facilities of this type including limitations on change in control, disposition of assets, mergers and reorganizations. The Company is also obligated to meet certain financial covenants under the Agreement and requires senior debt to earnings before interest, taxes, depreciation and amortization (“EBITDA”) ratios (Senior Debt/EBITDA) less than or equal to 4.00 to 1.00 measured with respect to the four trailing quarters and minimum interest coverage ratios (EBITDA/Interest Expense) of 2.00 to 1.00 for each quarter. | ||
Loan Agreement [Member] | West Texas National Bank [Member] | |||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||
Line of credit facility | $ 2,500,000 | $ 1,000,000 | |
Line of credit facility, maturity date | Mar. 28, 2023 | Dec. 28, 2021 | |
Line of credit, increase in borrowing base amount | $ 1,500,000 | ||
Debt instrument rate | 0.50% | ||
Commitment fee description | the Company will pay an unused commitment fee in an amount equal to one-half of one percent (0.5%) times the daily average of the unadvanced amount of the commitment. | ||
Line of credit available for borrowing | $ 1,500,000 | ||
Loan origination fee percentage | 0.10% | ||
Loan origination fee | $ 2,500 | ||
Legal and recording expenses | 12,266 | ||
Extension fees | $ 3,125 | ||
Original Agreement [Member] | West Texas National Bank [Member] | |||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||
Loan origination fee percentage | 0.50% | ||
Loan origination fee | $ 5,000 | ||
Legal and recording expenses | $ 34,532 |
Summary of Activity of Stock Op
Summary of Activity of Stock Options (Details) - USD ($) | 3 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||
Number of Shares, Granted | 0 | 0 |
Number of Shares, Exercised | 0 | (5,000) |
Number of Shares, Forfeited or Expired | 0 | 0 |
Share-Based Payment Arrangement, Option [Member] | ||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||
Number of Shares, Beginning Balance | 114,250 | |
Weighted Average Exercise Price Per Share, Beginning Balance | $ 5.51 | |
Weighted Average Remaining Contract Life in Years, Beginning Balance | 7 years 4 months 24 days | |
Intrinsic Value, Beginning Balance | $ 1,221,670 | |
Number of Shares, Granted | ||
Weighted Average Exercise Price Per Share, Granted | ||
Number of Shares, Exercised | ||
Weighted Average Exercise Price Per Share, Exercised | ||
Number of Shares, Forfeited or Expired | ||
Weighted Average Exercise Price Per Share, Forfeited or Expired | ||
Number of Shares, Ending Balance | 114,250 | |
Weighted Average Exercise Price Per Share, Ending Balance | $ 5.51 | |
Weighted Average Remaining Contract Life in Years, Ending Balance | 7 years 1 month 24 days | |
Intrinsic Value, Ending Balance | $ 1,334,778 | |
Number of Shares, Vested | 52,750 | |
Weighted Average Exercise Price Per Share, Vested | $ 4.68 | |
Weighted Aggregate Average Remaining Contract Life in Years, Vested | 5 years 11 months 26 days | |
Intrinsic Value, Vested | $ 660,023 | |
Number of Shares, Exercisable | 52,750 | |
Weighted Average Exercise Price Per Share, Exercisable | $ 4.68 | |
Weighted Aggregate Average Remaining Contract Life in Years, Exercisable | 5 years 11 months 26 days | |
Intrinsic Value, Exercisable | $ 660,023 |
Stock-based Compensation (Detai
Stock-based Compensation (Details Narrative) - USD ($) | 3 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Share-Based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Total cost related to non-vested awards | $ 188,537 | |
Non-vested awards, weighted average period of recognition | 2 years 1 month 20 days | |
Stock option granted | 0 | 0 |
Stock option shares exercised | 0 | 5,000 |
Intrinsic value | $ 15,036 | |
Proceeds from stock-based ompensation including option exercise | $ 34,000 | |
Number of shares, forfeited or expired | 0 | 0 |
Outstanding options exercise price, lower range | $ 3.34 | |
Outstanding options exercise price, upper range | $ 8.51 | |
Minimum [Member] | ||
Share-Based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Outstanding options expiration month and year | 2024-08 | |
Maximum [Member] | ||
Share-Based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Outstanding options expiration month and year | 2031-07 | |
General and Administrative Expense [Member] | ||
Share-Based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Stock based compensation expense | $ 25,571 | $ 13,865 |
Schedule of Operating Lease Ass
Schedule of Operating Lease Assets and Liabilities (Details) - USD ($) | Jun. 30, 2022 | Mar. 31, 2022 |
Leases | ||
Operating lease right-of-use asset, beginning balance | $ 129,923 | |
Current period amortization | (13,383) | |
Total operating lease right-of-use asset | 116,540 | $ 129,923 |
Operating lease liability, current | 54,806 | 54,294 |
Operating lease liability, long term | 61,734 | $ 75,629 |
Total lease liabilities | $ 116,540 |
Schedule of Future Minimum Leas
Schedule of Future Minimum Lease Payments (Details) - USD ($) | Jun. 30, 2022 | Mar. 31, 2022 |
Leases | ||
Fiscal Year Ended March 31, 2023 | $ 43,680 | |
Fiscal Year Ended March 31, 2024 | 58,240 | |
Fiscal Year Ended March 31, 2025 | 19,413 | |
Total lease payments | 121,333 | |
Less: imputed interest | (4,793) | |
Operating lease liability | 116,540 | |
Less: operating lease liability, current | (54,806) | $ (54,294) |
Operating lease liability, long term | $ 61,734 | $ 75,629 |
Leases (Details Narrative)
Leases (Details Narrative) | 1 Months Ended | 3 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2022 USD ($) ft² | Jun. 30, 2021 USD ($) | |
Deferred Compensation Arrangement with Individual, Excluding Share-Based Payments and Postretirement Benefits [Line Items] | |||
Area of lease | ft² | 4,160 | ||
Lease term | 36 months | ||
Lease term extension, description | In June 2021, the Company agreed to extend its current lease at a flat (unescalated) rate for 36 months. | In June 2020, in exchange for a reduction in rent for the months of June and July 2020, the Company agreed to a 2-month extension to its current lease agreement at the regular monthly rate extending its current lease expiration date to July 2021. | |
Lease Expiration Date | Jul. 31, 2024 | ||
Incremental borrowing rate | 3.75% | ||
Net cash paid for operating lease | $ | $ 10,667 | $ 10,929 | |
Sublease income | $ | $ 3,893 | $ 5,200 | |
Shareholder [Member] | |||
Deferred Compensation Arrangement with Individual, Excluding Share-Based Payments and Postretirement Benefits [Line Items] | |||
Area of lease | ft² | 1,112 |
Income Taxes (Details Narrative
Income Taxes (Details Narrative) | Jun. 30, 2022 USD ($) |
Income Tax Disclosure [Abstract] | |
Deferred tax asset, net | $ 526,846 |
Deferred tax assets, valuation allowance | $ 526,846 |
Related Party Transactions (Det
Related Party Transactions (Details Narrative) - USD ($) | 3 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Related Party Transactions [Abstract] | ||
Total billed to and reimbursed expenses | $ 10,085 | $ 12,768 |
Due to related party | $ 3,893 | $ 4,045 |
Schedule of Reconciliation of B
Schedule of Reconciliation of Basic and Diluted Net Income (loss) Per Share (Details) - USD ($) | 3 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Income per common share: | ||
Net income | $ 1,298,672 | $ 395,006 |
Weighted average common shares outstanding – basic | 2,149,416 | 2,076,756 |
Effect of the assumed exercise of dilutive stock options | $ 67,326 | $ 43,199 |
Weighted average common shares outstanding – dilutive | 2,216,742 | 2,119,955 |
Basic | $ 0.60 | $ 0.19 |
Diluted | $ 0.59 | $ 0.19 |
Income Per Common Share (Detail
Income Per Common Share (Details Narrative) - shares | 3 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Income per common share: | ||
Antidilutive securities excluded from computation of earnings per share | 0 | 0 |
Subsequent Events (Details Narr
Subsequent Events (Details Narrative) - Subsequent Event [Member] - USD ($) | 1 Months Ended | |
Aug. 31, 2022 | Jul. 31, 2022 | |
Four Horizontal New Mexico [Member] | ||
Subsequent Event [Line Items] | ||
Remaining balance drilling and completion | $ 300,000 | |
Three Horizontal New Mexico [Member] | ||
Subsequent Event [Line Items] | ||
Purchase additional working interests | $ 768,000 | 768,000 |
Horizontal New Mexico [Member] | ||
Subsequent Event [Line Items] | ||
Purchase additional working interests | 377,000 | $ 377,000 |
Two Horizontal New Mexico [Member] | ||
Subsequent Event [Line Items] | ||
Remaining balance drilling and completion | $ 33,000 |