LIQUIDITY AND GOING CONCERN CONSIDERATIONS
|6 Months Ended|
Sep. 30, 2020
|Organization, Consolidation and Presentation of Financial Statements [Abstract]|
|LIQUIDITY AND GOING CONCERN CONSIDERATIONS||
NOTE 2 – LIQUIDITY AND GOING CONCERN CONSIDERATIONS
At September 30, 2020, the Company’s total current assets of $1.5 million were less than its total current liabilities of approximately $1.6 million, resulting in a working capital deficit of $0.1 million, while at March 31, 2020, the Company’s total current assets of $1.1 million were less than its total current liabilities of approximately $2.0 million, resulting in a working capital deficit of $0.9 million. The decrease in working capital deficit of $0.8 million is the result of the sale of the Series C Preferred Stock shares in June 2020.
Recent oil and gas price volatility as a result of geopolitical conditions and the global COVID-19 pandemic may have a negative impact on the Company’s financial position and results of operations. Negative impacts could include, but are not limited to, the Company’s inability to sell its oil and gas production, reduction in the selling price of the Company’s oil and gas, failure of a counterparty to make required payments, possible disruption of production as a result of worker illness or mandated production shutdowns or ‘stay-at-home’ orders, and access to new capital and financing.
The factors above raise substantial doubt about the Company’s ability to continue to operate as a going concern for the twelve months following the issuance of these financial statements. The Company believes that it may not have sufficient liquidity to meet its operating costs unless it can raise new funding, which may be through the sale of debt or equity or unless it closes the Viking Merger, which is the Company’s current plan, which Merger is anticipated to close in the first calendar quarter of 2021, and which required closing date is currently December 31, 2020. There is no guarantee though that the Viking Merger will be completed or other sources of funding will be available. The financial statements do not include any adjustments that might result from the outcome of this uncertainty.
The entire disclosure when substantial doubt is raised about the ability to continue as a going concern. Includes, but is not limited to, principal conditions or events that raised substantial doubt about the ability to continue as a going concern, management's evaluation of the significance of those conditions or events in relation to the ability to meet its obligations, and management's plans that alleviated or are intended to mitigate the conditions or events that raise substantial doubt about the ability to continue as a going concern.
Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef