Note I - Fair Value Measurements

3 Months Ended

Jun. 30, 2020

NOTE I — FAIR VALUE MEASUREMENTS

Accounting standards provide a comprehensive framework for measuring fair value and sets forth a definition of fair value and establishes a hierarchy prioritizing the inputs to valuation techniques, giving the highest priority to quoted prices in active markets for identical assets and liabilities and the lowest priority to unobservable value inputs. Levels within the hierarchy are defined as follows:

●

Level

– Quoted prices for identical assets and liabilities in active markets.

●

Level

– Inputs other than quoted prices included within Level

that are observable for the assets and liabilities, either directly or indirectly.

●

Level

– Unobservable inputs that are supported by little or

market activity and that are significant to the fair value of the assets and liabilities.

Recurring Fair Value Measurements

June 30, 2020,

our financial assets measured at fair value on a recurring basis were as follows:

	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total
Commodity futures – financial assets	$	54,000	$	—	$	—	$	54,000
Total	$	54,000	$	—	$	—	$	54,000

March 31, 2020,

the Company did

not

have any financial instruments that required fair value measurement on a recurring basis.

Non-Recurring Fair Value Measurements

March 31, 2020,

our assets measured at fair value on a non-recurring basis were categorized as follows:

	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total
Long-lived assets held and used (1)	$	—	$	—	$	1,771,450	$	1,771,450
Total	$	—	$	—	$	1,771,450	$	1,771,450

(

)

March 31, 2020,

the Company performed an impairment review of the tubular segment's pipe finishing facility that resulted in the assets being written down to their estimated fair value of

$1,771,450.

June 30, 2020,

the Company did

not

have any fair value measurements on a non-recurring basis.

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

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