Leases

3 Months Ended

Jun. 30, 2020

Leases [Abstract]

LEASES

NOTE 19: LEASES

The Company has adopted ASU No. 2016-02, Leases (Topic 842), as of April 1, 2019 and will account for their leases in terms of the right of use assets and offsetting lease liability obligations under this pronouncement. The Company had had only short-term leases up through the acquisition of Banner Midstream. The Company acquired a right of use asset and lease liability of $731 and $732, respectively on March 27, 2020. The Company recorded these amounts at present value, in accordance with the standard, using discount rates ranging between 2.5% and 6.8%. The right of use asset is composed of the sum of all lease payments, at present value, and is amortized straight line over the life of the expected lease term. For the expected term of the lease the Company used the initial terms ranging between 42 and 60 months. Upon the election by the Company to extend the lease for additional years, that election will be treated as a lease modification and the lease will be reviewed for remeasurement. This lease will be treated as an operating lease under the new standard.

The Company has chosen to implement this standard using the modified retrospective model approach with a cumulative-effect adjustment, which does not require the Company to adjust the comparative periods presented when transitioning to the new guidance. The Company has also elected to utilize the transition related practical expedients permitted by the new standard. The modified retrospective approach provides a method for recording existing leases at adoption and in comparative periods that approximates the results of a modified retrospective approach. Adoption of the new standard did not result in an adjustment to retained earnings for the Company.

The Company's portfolio of leases contains both finance and operating leases that relate primarily to the commodity segment. As of June 30, 2020, the value of the unamortized lease right of use asset is $672, of which $550 is from financing leases (through maturity at June 30, 2024) and $122 is from operating leases (through maturity at September 30, 2022). As of June 30, 2020, the Company's lease liability was $677, of which $539 is from financing leases and $138 is from operating leases.

Maturity of lease liability for the operating leases for the period ended June 30,
2021	$	82
2022	$	48
2023	$	12
2024	$	-
Imputed interest	$	(4	)
Total lease liability	$	138

Disclosed as:
Current portion	$	79
Non-current portion	$	59

Maturity of lease liability for the financing leases for the period ended June 30,
2021	$	151
2022	$	151
2023	$	148
2024	$	119
Imputed interest	$	(30	)
Total lease liability	$	539

Disclosed as:
Current portion	$	138
Non-current portion	$	401

Amortization of the right of use asset for the period ended June 30,
2021	$	212
2022	$	185
2023	$	156
2024	$	119
2025	$	-
Total	$	672

Total Lease Cost

Individual components of the total lease cost incurred by the Company is as follows:

	Three months ended June 30, 2020
Operating lease expense	$	20
Finance lease expense
Depreciation of capitalized finance lease assets		35
Interest expense on finance lease liabilities		4
Total lease cost	$	59