Quarterly report pursuant to Section 13 or 15(d)

REVENUE FROM CONTRACTS WITH CUSTOMERS

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REVENUE FROM CONTRACTS WITH CUSTOMERS
6 Months Ended
Sep. 30, 2019
Revenue from Contract with Customer [Abstract]  
REVENUE FROM CONTRACTS WITH CUSTOMERS

NOTE 9 – REVENUE FROM CONTRACTS WITH CUSTOMERS 

 

Disaggregation of Revenue from Contracts with Customers 

 

Oil and Gas Contracts 

 

The following table disaggregates revenue by significant product type for the three and six months ended September 30, 2019 and 2018:  

 

    Three Months Ended     Six Months Ended  
    September 30,     September 30,  
    2019     2018     2019     2018  
Oil sales   $ 66,786     $ 181,952     $ 160,485     $ 382,021  
Natural gas sales     12,343       266,430       19,547       739,943  
Natural gas liquids sales     13,624       361,084       34,072       1,382,198  
Total oil and gas revenue from customers   $ 92,753     $ 809,466     $ 214,104     $ 2,504,162  

  

Construction and Service Contracts 

 

For the contracts entered into, there is a similar number of performance obligations, and in most cases, the Company has determined that the method of revenue recognition for these contracts is the same as the Company previously utilized considering different elements, such as variable consideration, when evaluating their transaction prices. The Company ultimately determined that over time revenue recognition was appropriate via the percentage-of-completion method, based on time incurred, or as units are produced, in accordance with ASC 606-10-25-27 as the Company satisfies its performance obligations over time.  

 

Contract cost and recognized income not yet billed on uncompleted contracts arise when recorded revenues for a contract exceed the amounts billed under the terms of the contracts. Contract billings in excess of cost and recognized income arise when billed amounts exceed revenues recorded. Amounts are billable to customers upon various measures of performance, including achievement of certain milestones, completion of specified units or completion of the contract.  

 

As of September 30, 2019, the Company had approximately $2.9 million in unsatisfied performance obligations under its executed fixed price service contracts in progress. The Company expects to satisfy these performance obligations within the next 12 months. 

 

Contract cost and recognized income not yet billed and related amounts billed as of September 30, 2019 were as follows:   

 

    September 30, 2019  
       
Contract cost and recognized income not yet billed   $ 1,771,739  
Contract billings in excess of cost and recognized income     (90,082 )
 Net amount of cost and estimated earnings on uncompleted contracts in excess of billings   $ 1,681,657