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Credit Facility | 12 Months Ended
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Mar. 31, 2016
Debt Disclosure [Abstract] |
Credit Facility | 4. Credit Facility The Company has a loan agreement with Bank of America, N.A. (the “Agreement”), which provided for a credit facility of $5,630,000 with no monthly commitment reductions and a borrowing base to be evaluated on July 30 and January 1 of each year or at any additional time in the Bank’s discretion as of March 31, 2016. The borrowing base will be reset to the extent the Company sells or otherwise disposes of any of its oil and gas properties. The Company is required to pay 100% of such net proceeds to the lender resulting in a permanent reduction of the borrowing base. Subsequently, in April 2016, the Company sold some of its oil and gas properties for $60,000 and used these proceeds to pay on its line of credit, thus reducing its credit facility and borrowing base to $5,570,000. 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 was renewed ten times with the tenth amendment effective as of March 31, 2016 with a maturity date of November 30, 2020. Under such renewal agreement, interest on the facility accrues at an annual rate equal to the British Bankers Association London Interbank Offered Rate (“BBA LIBOR”) daily floating rate, plus an increased rate from 2.5 to 3.0 percentage points, which was 2.935% on March 31, 2016. Interest on the outstanding amount under the credit agreement is payable monthly. In addition, the Company no longer will pay an unused commitment fee in an amount equal to ½ to 1 percent (.5%) times the daily average of the unadvanced amount of the commitment. There was no availability of this line of credit at March 31, 2016. No principal payments are anticipated to be required through November 30, 2020. 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 except that the tenth amendment replaces the tangible net worth test and requires minimum earnings before interest, taxes, depreciation and amortization (“EBITDA”) of $100,000 for the two fiscal quarters ending September 30, 2016, $300,000 for the three fiscal quarters ending December 31, 2016, $500,000 for the four fiscal quarters ending March 31, 2017 and $650,000 for each trailing fiscal quarter period thereafter and minimum interest coverage ratios (EBITDA/Interest Expense) of 1.25 to 1 for the fiscal quarter ending June 30, 2016 and 2.00 to 1.00 for each quarter thereafter. The Company is in compliance with all covenants as of March 31, 2016. In addition, this Agreement prohibits the Company from paying cash dividends on its common stock. The Agreement does grant the Company permission to enter into hedge agreements however, it is under no obligation to do so. The amended Agreement allows for up to $500,000 of the facility to be used for outstanding letters of credits. As of March 31, 2016, one letter of credit for $50,000, in lieu of plugging bond with the Texas Railroad Commission (“TRRC”) covering the properties the Company operates is outstanding under the facility. This letter of credit renews annually. The company will pay a fee in an amount equal to 1 percent (1.0%) per annum of the outstanding undrawn amount of each standby letter of credit, payable monthly in arrears, on the basis of the face amount outstanding on the day the fee is calculated. The balance outstanding on the line of credit as of March 31, 2016 was $5,580,000 and as of June 15, 2016 was $5,520,000. The following table is a summary of activity on the Bank of America, N.A. line of credit for the year ended March 31, 2016:
|  |  | Principal |
Balance at April 1, 2015: |  |  | $ | 5,950,000 |
Borrowings |  |  |  | 400,000 |
Repayments |  |  |  | (770,000 | )
Balance at March 31, 2016: |  |  | $ | 5,580,000 |

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- Definition The entire disclosure for debt and capital lease obligations can be reported. Information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants. Also includes descriptions and amounts of capital leasing arrangements that consist of direct financing, sales type and leveraged leases. Disclosure may include the effect on the balance sheet and the income statement resulting from a change in lease classification for leases that at inception would have been classified differently had guidance been in effect at the inception of the original lease. + References No definition available. + Details
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- References No definition available. + Details
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