Restatement of previously issued financial statements (Tables)

6 Months Ended

Sep. 30, 2020

Restatement of previously issued financial statements (Tables)

Schedule of consolidated balance sheet

The table below sets forth changes to the consolidated balance sheet as of September 30, 2020:

	As Previously Restated (Second amendment)			Adjustments			As Restated
TOTAL ASSETS		11,795,451			-			11,795,451
LIABILITIES  AND EQUITY
Current liabilities
Accounts payable		1,455,898						1,455,898
Accrued expenses		107,621						107,621
Derivative liability - Series C		30,866,933			65,884,245			96,751,178
Current ARO		25,766						25,766
Current income taxes payable		3,000						3,000
Total current liabilities		32,459,218			65,884,245			98,343,463
Asset retirement obligations		20,017						20,017
TOTAL LIABILITIES		32,479,235			65,884,245			98,363,480
TEMPORARY EQUITY
Preferred Stock Series C		38,002,002			(32,698,864	)		5,303,138
STOCKHOLDERS EQUITY
Preferred Stock Series C		-						-
Common Stock		25,000						25,000
Additional paid in capital		161,157,247			40,169,049			201,326,296
Retained earnings (deficit)		(219,868,033	)		(73,354,430	)		(293,222,463	)
Total stockholders equity (deficit)		(58,685,786	)		(33,185,381	)		(91,871,167	)
TOTAL LIABILITIES AND EQUITY		11,795,451			-			11,795,451

The table below sets forth changes to the consolidated balance sheet as of March 31, 2020:

	As Previously Restated (Second amendment)			Adjustments			As Restated
TOTAL ASSETS		9,695,218						9,695,218
LIABILITIES AND EQUITY
Current liabilities
Accounts payable		1,474,221			-			1,474,221
Common stock payable		173,000			-			173,000
Accrued expenses		348,460			-			348,460
Derivative liability - Series C		8,669,831			68,966,835			77,636,666
Current ARO		30,227			-			30,227
Current income taxes payable		3,000			-			3,000
Total current liabilities		10,698,739			68,966,835			79,665,574
Asset retirement obligations		41,523			-			41,523
TOTAL LIABILITIES		10,740,262			68,966,835			79,707,097
Commitments and contingencies		-						-
TEMPORARY EQUITY
Preferred Stock Series C		39,389,202			(29,587,756	)		9,801,446
STOCKHOLDERS EQUITY
Common Stock		5,000			-			5,000
Additional paid in capital		149,825,528			29,957,705			179,783,233
Retained earnings (deficit)		(190,264,774	)		(69,336,784	)		(259,601,558	)
Total stockholders equity (Deficit)		(40,434,246	)		(39,379,079	)		(79,813,325	)
TOTAL LIABILITIES AND EQUITY		9,695,218			--			9,695,218

Schedule of consolidated statement of operations

The table below sets forth changes to the consolidated statement of operations for the three month period ended September 30, 2020:

Three Months Ended September 30, 2020	As Previously Restated (Second amendment)			Adjustments			Restated
Total Revenues		57,458						57,458
Operating Expenses
Lease Operating Expenses		27,222						27,222
Severance and Property Taxes		2,126						2,126
Depreciation, Depletion, Amortization, and Accretion		2,837						2,837
General and Administrative		852,915						852,915
Total Operating Expenses		885,100						885,100
Operating Loss		(827,642	)					(827,642	)
Other Expense (Income)
Loss from Unconsolidated Entity		1,056,766						1,056,766
Loss on Derivative Liability		20,251,123			(2,320,788	)		17,930,335
Other Expense (Income), Net		172,100						172,100
Total Other Expenses		21,479,989			(2,320,788	)		19,159,201
Net Loss	$	(22,307,631	)	$	2,320,788		$	(19,986,843	)
Less Preferred Dividends		1,651,219			(1,651,219	)		--
Net Loss Attributable to Common Shareholders		(23,958,850	)		3,972,007			(19,986,843	)
Net Loss Per Common Share
Basic
Continuing Operations	$	(1.21	)	$	0.20		$	(1.01	)
Discontinued Operations		—						—
Total	$	(1.21	)	$	0.20		$	(1.01	)
Diluted
Continuing Operations	$	(1.21	)	$	0.20		$	(1.01	)
Discontinued Operations		—						—
Total	$	(1.21	)	$	0.20		$	(1.01	)

The table below sets forth changes to the consolidated statement of operations for the six month period ended September 30, 2020:

Six Months Ended September 30, 2020	As Previously Restated (Second amendment)			Adjustments			Restated
Total Revenues		91,147						91,147
Operating Expenses
Lease Operating Expenses		96,513						96,513
Severance and Property Taxes		3,475						3,475
Depreciation, Depletion, Amortization, and Accretion		5,132						5,132
General and Administrative		1,539,578						1,539,578
Total Operating Expenses		1,644,698						1,644,698
Operating Loss		(1,553,551	)					(1,553,551	)
Other Expense (Income)
Interest Expense		—						—
Loss from Unconsolidated Entity		2,140,121						2,140,121
Loss on Derivative Liability		25,952,119			4,017,646			29,969,765
Other Expense (Income), Net		(42,532						(42,532	)
Total Other Expenses		28,049,708			4,017,646			32,067,354
Net Loss Before Discontinued Operations		(29,603,259	)		(4,017,646	)		(33,620,905	)
Income from Discontinued Operations		—						—
Net Loss	$	(29,603,259	)	$	(4,017,646	)	$	(33,620,905	)
Less Preferred Dividends		3,331,975			(1,114,304	)		2,217,671
Net Loss Attributable to Common Shareholders		(32,935,234	)		(2,903,342	)		(35,838,576	)
Net Loss Per Common Share
Basic
Continuing Operations	$	(2.40	)	$	(0.21	)	$	(2.61	)
Discontinued Operations		—						—
Total	$	(2.40	)	$	(0.21	)	$	(2.61	)
Diluted
Continuing Operations	$	(2.40	)	$	(0.21	)	$	(2.61	)
Discontinued Operations		—						—
Total	$	(2.40	)	$	(0.21	)	$	(2.61	)

The table below sets forth changes to the consolidated statement of operations for the three month period ended September 30, 2019:

Three Months Ended September 30, 2019	As Previously Restated (Second amendment)			Adjustments			Restated
Total Revenues		92,753						92,753
Operating Expenses
Lease Operating Expenses		188,483						188,483
Severance and Property Taxes		4,031						4,031
Depreciation, Depletion, Amortization, and Accretion		3,592						3,592
General and Administrative		940,483						940,483
Total Operating Expenses		1,136,589						1,136,589
Operating Loss		(1,043,836	)					(1,043,836	)
Other Expense (Income)
Interest Expense		4,174						4,174
Loss on Derivative Liability		2,767,878			5,366,234			8,134,112
Other Expense (Income), Net		(9,278	)					(9,278	)
Total Other Expenses (Income)		(2,762,774	)		5,366,234			8,129,008
Net Loss Before Discontinued Operations		(3,806,610	)		(5,366,234	)		(9,172,844	)
Income from Discontinued Operations		761,768						761,768
Net Loss	$	(3,044,842	)	$	(5,366,234	)	$	(8,411,076	)
Less Preferred Dividends		1,468,328			(1,384,046	)		84,282
Net Loss Attributable to Common Shareholders		(4,513,170	)		(3,982,188	)		(8,495,358	)
Net Loss Per Common Share
Basic
Continuing Operations	$	(10.69	)	$	(8.07	)	$	(18.77	)
Discontinued Operations		1.54						1.54
Total	$	(9.15	)	$	(8.07	)	$	(17.22	)
Diluted
Continuing Operations	$	(10.69	)	$	(8.07	)	$	(18.77	)
Discontinued Operations		1.54						1.54
Total	$	(9.15	)	$	(8.07	)	$	(17.22	)

The table below sets forth changes to the consolidated statement of operations for the six month period ended September 30, 2019:

Six Months Ended September 30, 2019	As Previously Restated (Second amendment)			Adjustments			Restated
Total Revenues		214,104						214,104
Operating Expenses
Lease Operating Expenses		312,040						312,040
Severance and Property Taxes		6,605						6,605
Depreciation, Depletion, Amortization, and Accretion		7,834						7,834
General and Administrative		2,272,474						2,272,474
Total Operating Expenses		2,598,953						2,598,953
Operating Loss		(2,384,849	)					(2,384,849	)
Other Expense (Income)
Interest Expense		5,021						5,021
Loss from Unconsolidated Entity		—						—
Loss on Derivative Liability		4,931,769			5,366,234			10,298,003
Other Expense (Income), Net		(63,540	)					(63,540	)
Total Other Expenses (Income)		(4,873,250	)		5,366,234			10,239,484
Net Loss Before Discontinued Operations		(7,258,099	)		(5,366,234	)		(12,624,333	)
Income from Discontinued Operations		761,768						761,768
Net Loss	$	(6,496,331	)	$	(5,366,234	)	$	(11,862,565	)
Less Preferred Dividends		2,922,049			(2,837,767	)		84,282
Net Loss Attributable to Common Shareholders		(9,418,380	)		(2,528,467	)		(11,946,847	)
Net Loss Per Common Share
Basic
Continuing Operations	$	(39.24	)	$	(9.75	)	$	(48.99	)
Discontinued Operations		2.94						2.94
Total	$	(36.30	)	$	(9.75	)	$	(46.05	)
Diluted
Continuing Operations	$	(39.24	)	$	(9.75	)	$	(48.99	)
Discontinued Operations		2.94						2.94
Total	$	(36.30	)	$	(9.75	)	$	(46.05	)

Schedule of consolidated statement of shareholders'24

The table below sets forth changes to the consolidated statement of shareholders’ equity as of September 30, 2020:

	As previously restated (First Amendment)			Adjustments			As Restated
Balances September 30, 2020
Series C preferred Stock	$	38,002,002		$	(32,698,864	)	$	5,303,138
Common stock		25,000						25,000
Additional Paid-in Capital		161,157,247			40,169,049			201,326,296
Accumulated Deficit		(219,868,033	)		(73,354,430	)		(293,222,463	)
Total Stockholders' Equity, September 30, 2020	$	(58,685,786	)	$	(33,185,381	)	$	(91,871,167	)

The table below sets forth changes to the consolidated statement of shareholders’ equity as of March 31, 2020:

	As previously restated (First Amendment)			Adjustments			As Restated
Balances March 31, 2020
Series C preferred Stock	$	39,389,202		$	(29,587,756	)	$	9,801,446
Common stock	$	5,000					$	5,000
Additional Paid-in Capital		149,825,528			29,957,705			179,783,233
Accumulated Deficit		(190,264,774	)		(69,336,784	)		(259,601,558	)
Total Stockholders' Equity, March 31, 2020	$	(40,434,246	)	$	(39,379,079	)	$	(79,813,325	)

Schedule of Consolidated statements of cash flows

The table below sets forth changes to the consolidated statements of cash flows for the six month period ended September 30, 2020:

Six Months Ended September 30, 2020	As Previously Restated (Second amendment)			Adjustments			Restated
Cash Flows from Operating Activities
Net Loss	$	(29,603,259	)		(4,017,646	)	$	(33,620,905	)
Net Income from Discontinued Operations		—						—
Net Loss from Continuing Operations		(29,603,259	)		(4,017,646	)		(33,620,905	)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation, Depletion, Amortization, and Accretion		5,132						5,132
Bad debt Expense		170,660						170,660
Share-Based Compensation		36,502						36,502
Loss from Equity Method Investment		2,140,121						2,140,121
Change in Fair Value of Derivative Liability		25,952,119			4,017,646			29,969,765
Changes in Components of Working Capital and Other Assets:
Accounts Receivable		55,060						55,060	)
Other Current Assets		155,053						155,053
Accounts Payable and Accrued Expenses		(255,038	)					(255,038	)
Net Cash Used in Operating Activities		(1,343,650	)					(1,343,650	)
Investing Cash Flows
Cash Paid for Issuance of Notes Receivable		(4,200,000	)					(4,200,000
Net Cash Used in Investing Activities		(4,200,000	)					(4,200,000	)
Financing Cash Flows
Proceeds from Issuance of Series C Preferred Stock		6,000,000						6,000,000
Net Cash Provided by Financing Activities		6,000,000						6,000,000
Increase (Decrease) in Cash		456,350						456,350	)
Cash at Beginning of the Period		656,615						656,615
Cash at End of the Period	$	1,112,965					$	1,112,965

The table below sets forth changes to the consolidated statements of cash flows for the six month period ended September 30, 2019:

Six Months Ended September 30, 2019	As Previously Restated (Second amendment)			Adjustments			Restated
Cash Flows from Operating Activities
Net Loss	$	(6,496,331	)		(5,366,234	)	$	(11,862,565	)
Net Income from Discontinued Operations		761,768						761,768
Net Loss from Continuing Operations		(7,258,099	)		(5,366,234	)		(12,624,333	)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation, Depletion, Amortization, and Accretion		7,834						7,834
Bad debt Expense		17,694						17,694
Share-Based Compensation		29,425						29,425
Loss from Equity Method Investment		—						—
Change in Fair Value of Derivative Liability		4,931,764			5,366,234			10,298,003
Changes in Components of Working Capital and Other Assets:
Accounts Receivable		(7,213						(7,213	)
Other Current Assets		234,145						234,14
Accounts Payable and Accrued Expenses		(409,683	)		(5	)		(409,688	)
Net Cash Used in Operating Activities from Continuing Operations		(2,454,133	)					(2,454,133	)
Net Cash Used in Operating Activities from Discontinued Operations		(383,770						(383,770	)
Net Cash Used in Operating Activities		(2,837,903	)					(2,837,903	)
Investing Cash Flows
Cash Paid for Subsidiary		(1,050,000						(1,050,000	)
Cash Paid for Issuance of Notes Receivable		—						—
Cash Received for Deposits		(31,534						(31,534	)
Net Cash Used in Investing Activities from Continuing Operations		(1,081,534	)					(1,081,534	)
Net Cash Used in Investing Activities from Discontinued Operations		(70,440						(70,440	)
Net Cash Used in Investing Activities		(1,151,974	)					(1,151,974	)
Financing Cash Flows
Cash Paid for Settlement of Series B Preferred Stock Warrants		(25,000						(25,000	)
Proceeds from Issuance of Series C Preferred Stock		—						—
Net Cash Provided by (Used in) Financing Activities from Continuing Operations		(25,000						(25,000	)
Net Cash Provided by Financing Activities from Discontinued Operations		454,210						454,210
Net Cash Provided by Financing Activities		429,210						429,210
Increase (Decrease) in Cash		(3,560,667						(3,560,667	)
Cash at Beginning of the Period		7,778,723						7,778,723
Cash at End of the Period	$	4,218,056					$	4,218,056