UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended March 31, 2023 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission File No. 1-31785 MEXCO ENERGY CORPORATION (Exact name of registrant as specified in its charter) (State or other jurisdiction of incorporation or organization) Colorado 84-0627918 (Address of principa ...

Financial Performance - For the quarter ended December 31, 2022, net income was $1,244,785, a 65% increase from $753,302 for the same quarter in 2021[83]. - Net income for the nine months ended December 31, 2022, was $3,755,173, a 102% increase from $1,857,136 for the same period in 2021[89]. - Revenue from oil and gas sales for the nine months ended December 31, 2022, was $7,184,025, a 64% increase from $4,370,720 for the same period in 2021[90]. Revenue Breakdown - Revenue from oil and gas sales was $2,486,017 for Q3 fiscal 2023, a 58% increase from $1,573,984 in Q3 fiscal 2022[84]. - Oil revenue increased by 63.1% to $1,750,539 with production volume rising by 50.7% to 21,308 barrels[85]. - Natural gas revenue increased by 46.8% to $735,478, with production volume up 59.5% to 145,980 mcf[85]. - Oil revenue was $4,707,735 for the nine months ended December 31, 2022, a 47.4% increase from $3,193,315 in 2021, with production volume increasing by 9.1%[91]. - Gas revenue was $2,476,290 for the nine months ended December 31, 2022, a 110.3% increase from $1,177,405 in 2021, with production volume increasing by 43.8%[91]. Expenses - General and administrative expenses increased by 20% to $288,536 for Q3 fiscal 2023 compared to $239,767 in Q3 fiscal 2022[87]. - Production costs for the nine months ended December 31, 2022, were $1,308,143, a 45% increase from $903,643 in 2021[91]. - Depreciation, depletion, and amortization expense was $1,268,016 for the nine months ended December 31, 2022, a 56% increase from $812,398 in 2021[92]. - General and administrative expenses were $876,735 for the nine months ended December 31, 2022, a 19% increase from $739,469 in 2021[93]. - Income tax expense for the nine months ended December 31, 2022, was $115,236, a 108% increase from $55,492 in 2021[95]. Cash Flow and Financial Position - Cash flow from operating activities for the nine months ended December 31, 2022, was $4,350,920, an increase of $1,622,334 from $2,728,586 in the same period of 2021[61]. - As of December 31, 2022, cash and cash equivalents were $631,036, following a net cash decrease of $739,730[65]. Investments and Operations - The company plans to participate in the drilling of 50 horizontal wells at an estimated cost of $4,000,000 for fiscal year 2023[66]. - Mexco's working interest in completed wells in the Midland Basin achieved initial production rates of 560 barrels of oil equivalent per day[68]. - The company acquired royalty interests in 22 wells for $939,000 effective April 1, 2022[77]. Risk Factors - The largest credit risk associated with any single purchaser was $1,255,427, representing 61% of total oil and gas receivables as of December 31, 2022[97].

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D. C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to (Registrant's telephone number, including area code) Securities registered pursuant to Section 12(b) of the Act: | Title of each class | Trading Symbol(s) | Name ...

Financial Performance - For the quarter ended June 30, 2022, net income was $1,298,672, a significant increase from $395,006 for the same quarter in 2021, primarily due to higher oil and gas prices and increased production volumes [73]. - Revenue from oil and gas sales reached $2,416,113 for the quarter ended June 30, 2022, representing a 92% increase from $1,255,565 in the same quarter of 2021 [74]. - Cash flow provided by operating activities was $1,495,598 for the three months ended June 30, 2022, compared to $666,054 for the same period in 2021, marking an increase of $829,544 [55]. Production and Costs - Production costs increased by 57% to $435,028 for the three months ended June 30, 2022, primarily due to higher production taxes and lease operating expenses [74]. - Depreciation, depletion, and amortization expense rose by 46% to $387,128 for the first quarter of fiscal 2023, driven by increased production and a higher amortization base [75]. Market Conditions - The average price per barrel of oil increased by 71.4% to $109.62 in Q2 2022, while the average price per mcf of gas rose by 121.8% to $6.61 [74]. - In the last twelve months, the WTI crude oil price ranged from a low of $58.30 per bbl to a high of $119.68 per bbl, while the Henry Hub natural gas price ranged from $3.32 per MMBtu to $9.44 per MMBtu [82]. - As of June 30, 2022, the WTI crude oil price was $101.74 per bbl and the Henry Hub natural gas price was $5.75 per MMBtu [82]. Future Plans and Investments - The company plans to participate in the drilling and completion of 52 horizontal wells at an estimated aggregate cost of approximately $3,800,000 for the fiscal year ending March 31, 2023 [61]. - The company acquired various royalty interests in 22 wells for a purchase price of $939,000, effective April 1, 2022 [68]. Financial Position - As of June 30, 2022, the company had working capital of $1,769,009, a decrease of $700,767 from $2,469,776 at March 31, 2022 [54]. - The company has no off-balance sheet debt or unrecorded obligations, with total contractual obligations for leases amounting to $121,333 due within one year [73]. Price Sensitivity - A $10 increase or decrease in average oil price for the quarter ended June 30, 2022, would have resulted in a change of $142,240 in oil sales [84]. - A $1 increase or decrease in average gas price for the same quarter would have led to a change of $129,706 in natural gas sales [84]. - Declines in oil and natural gas prices can adversely affect the company's financial condition, liquidity, and operating results [83]. - Improvements in oil and gas prices can positively impact the company's financial condition and capital resources [84]. - Price fluctuations can lead to changes in estimated future net revenue and the quantity of proved reserves [83]. - A noncash write-down of oil and gas properties may be required if prices decline significantly [83]. - Lower prices may reduce the economically producible quantities of crude oil and natural gas [83]. - The company may experience material changes in reserve quantities solely due to price changes, independent of drilling performance [83].

Part I [Business Overview](index=5&type=section&id=Item%201.%20Business) Mexco Energy Corporation is an independent oil and gas company focused on non-operated interests in the Permian Basin, with 1.616 MMBOE proved reserves - The company is an independent oil and gas entity primarily engaged in acquiring and developing non-operated working and royalty interests in the Permian Basin[14](index=14&type=chunk)[17](index=17&type=chunk)[18](index=18&type=chunk) Proved Reserves and PV-10 Value (as of March 31, 2022) | Metric | Value | | :--- | :--- | | Total Estimated Proved Reserves | 1.616 million BOE | | Oil and NGLs Percentage | 50% | | Natural Gas Percentage | 50% | | Estimated PV-10 Value | ~$31 million | - The Permian Basin is the company's core operational area, contributing **84%** of discounted future net cash flows from proved reserves, with the Delaware Basin accounting for **61%**[26](index=26&type=chunk)[28](index=28&type=chunk) Historical Production Volumes | Year | Oil (Bbls) | Gas (Mcf) | | :--- | :--- | :--- | | 2022 | 61,689 | 393,841 | | 2021 | 50,327 | 324,205 | | 2020 | 44,301 | 294,007 | | 2019 | 35,359 | 295,133 | | 2018 | 34,743 | 318,774 | - A single customer accounted for **68%** of oil and gas revenues in fiscal 2022, indicating significant customer concentration[38](index=38&type=chunk) - The company maintains a lean operational structure with only two full-time and three part-time employees as of March 31, 2022[54](index=54&type=chunk) [Risk Factors](index=11&type=section&id=Item%201A.%20Risk%20Factors) The company faces risks from volatile commodity prices, reserve replacement, PUD development, and reliance on third-party operators - Volatility of oil and gas prices is a primary risk, impacting revenues, capital expenditure cash flow, borrowing capacity, and potentially leading to ceiling test writedowns[60](index=60&type=chunk)[61](index=61&type=chunk) - Approximately **37%** of total estimated net proved reserves were undeveloped as of March 31, 2022, requiring significant capital and successful drilling for recovery[70](index=70&type=chunk) - Limited control over non-operated properties, including operational procedures, expenditures, and development timelines, poses a risk to revenues and production[80](index=80&type=chunk) - The Chairman and CEO, Nicholas C. Taylor, beneficially owns approximately **44%** of common stock, granting significant influence over shareholder matters and business strategy[88](index=88&type=chunk) - The company has never paid cash dividends and does not anticipate doing so, as earnings are retained for business growth[91](index=91&type=chunk) [Properties and Reserves](index=18&type=section&id=Item%202.%20Properties) Total proved reserves increased **7.5%** to **1.616 MMBOE** by March 31, 2022, with PV-10 value doubling to **$30.8 million** - Average commodity prices used in fiscal 2022 reserve calculations increased dramatically year-over-year, with oil rising to **$74.52/bbl** and natural gas to **$4.60/mcf**[98](index=98&type=chunk) Proved Reserves and PV-10 Value Comparison (as of March 31) | Metric | 2022 | 2021 | | :--- | :--- | :--- | | Total Net Proved Reserves (BOE) | 1,616,180 | 1,503,970 | | PV-10 Value ($) | $30,777,000 | $13,758,300 | | Standardized Measure ($) | $25,920,000 | $12,763,000 | - In fiscal 2022, the company added **307 MBOE** through extensions and discoveries and **21 MBOE** through acquisitions, offset by production and downward revisions of **86 MBOE**[109](index=109&type=chunk) Net Production and Average Sales Price (Fiscal Year Ended March 31) | Metric | 2022 | 2021 | | :--- | :--- | :--- | | **Oil** | | | | Production (Bbls) | 61,689 | 50,327 | | Average Sales Price/Bbl ($) | $75.95 | $40.31 | | **Gas** | | | | Production (Mcf) | 393,841 | 324,205 | | Average Sales Price/Mcf ($) | $4.67 | $2.30 | | **Total** | | | | Total Production (BOE) | 127,329 | 104,361 | [Legal and Safety Disclosures](index=21&type=section&id=Item%203.%20Legal%20Proceedings) The company is not involved in any material legal or governmental proceedings, and mine safety disclosures are not applicable to its operations - The company is not aware of any material legal or governmental proceedings against it[119](index=119&type=chunk) - Mine safety disclosures are not applicable to the company's operations[121](index=121&type=chunk) Part II [Common Stock Market and Shareholder Matters](index=23&type=section&id=Item%205.%20Market%20for%20Registrant%27s%20Common%20Equity%2C%20Related%20Stockholder%20Matters%20and%20Issuer%20Purchases%20of%20Equity%20Securities) Mexco's common stock trades on NYSE American under 'MXC' with significant volatility; no cash dividends are anticipated, and a **$250,000** repurchase program is authorized Quarterly Stock Price Range (Fiscal 2022) | Quarter (2021-2022) | High ($) | Low ($) | | :--- | :--- | :--- | | Apr - Jun 2021 | 10.60 | 6.88 | | Jul - Sep 2021 | 11.80 | 7.80 | | Oct - Dec 2021 | 18.00 | 8.35 | | Jan - Mar 2022 | 43.00 | 9.00 | - The company has never declared or paid cash dividends and does not anticipate doing so, with its current bank loan also prohibiting such payments without permission[126](index=126&type=chunk) - A **$250,000** share repurchase program is authorized, but no shares were repurchased in fiscal years 2022 or 2021[129](index=129&type=chunk)[130](index=130&type=chunk) [Management's Discussion and Analysis (MD&A)](index=24&type=section&id=Item%207.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Fiscal 2022 net income surged to **$2.86 million** on **135%** revenue growth, driven by higher commodity prices and production, enabling debt repayment [Liquidity and Capital Resources](index=24&type=section&id=MD%26A_Liquidity_and_Capital_Resources) Liquidity significantly improved in fiscal 2022, with operating cash flow reaching **$3.7 million**, enabling **$1.6 million** in property additions and full debt repayment Cash Flow Summary (Years Ended March 31) | Cash Flow Activity | 2022 | 2021 | | :--- | :--- | :--- | | Net Cash Provided by Operating Activities ($) | $3,744,407 | $710,047 | | Net Cash Used in Investing Activities ($) | ($1,710,024) | ($1,387,624) | | Net Cash (Used in) Provided by Financing Activities ($) | ($721,430) | $701,009 | - During fiscal 2022, the company participated in drilling **40** horizontal wells at a cost of approximately **$1.3 million**, primarily in the Delaware Basin[141](index=141&type=chunk) - The company acquired overriding royalty interests in **53** producing wells in the Eagle Ford area for **$567,000**[159](index=159&type=chunk) - Subsequent to fiscal year-end, the company acquired additional royalty interests for **$939,000** and committed to further drilling projects in the Permian Basin[154](index=154&type=chunk)[155](index=155&type=chunk)[160](index=160&type=chunk) [Results of Operations](index=27&type=section&id=MD%26A_Results_of_Operations) Net income for fiscal 2022 surged **1731%** to **$2.86 million**, driven by **135%** revenue growth to **$6.5 million** from higher commodity prices and production - Net income for fiscal 2022 was **$2,855,066**, an increase of **1731%** compared to **$155,932** in fiscal 2021[164](index=164&type=chunk) Revenue and Price Analysis (FY 2022 vs FY 2021) | Metric | 2022 | 2021 | % Change | | :--- | :--- | :--- | :--- | | **Oil Revenue** | $4,685,094 | $2,028,792 | +130.9% | | Average Oil Price/bbl ($) | $75.95 | $40.31 | +88.4% | | **Gas Revenue** | $1,840,170 | $744,987 | +147.0% | | Average Gas Price/mcf ($) | $4.67 | $2.30 | +103.0% | - Operating expenses increased at a slower pace than revenues, with production costs up **47%**, DD&A up **48%**, and G&A expenses up **26%** year-over-year[166](index=166&type=chunk)[167](index=167&type=chunk)[168](index=168&type=chunk) [Critical Accounting Policies](index=28&type=section&id=MD%26A_Critical_Accounting_Policies) Critical accounting policies include the full cost method for oil and gas properties and the quarterly ceiling test, where proved reserve estimates are key judgments - The company uses the full cost method of accounting, capitalizing all costs associated with property acquisition, exploration, and development[174](index=174&type=chunk) - A quarterly ceiling test ensures capitalized costs do not exceed the after-tax present value of future net cash flows from proved reserves; no write-downs were recorded in fiscal 2022 or 2021[67](index=67&type=chunk)[177](index=177&type=chunk) - Estimates of proved reserves, prepared by an independent engineering firm, are critical and inherently uncertain, serving as a key input for DD&A calculation and the ceiling test[179](index=179&type=chunk) [Market Risk Disclosures](index=31&type=section&id=Item%207A.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) Primary market risk is commodity price volatility; a **$10/bbl** oil price change impacts pretax income by **$617,000**, and a **$1/mcf** gas price change by **$394,000** - The primary market risk stems from fluctuating commodity prices; a hypothetical **$10/bbl** change in oil price would have altered fiscal 2022 pretax income by **$616,890**[194](index=194&type=chunk)[200](index=200&type=chunk) - A hypothetical **$1/mcf** change in the average natural gas price for fiscal 2022 would have altered pretax income by **$393,841**[200](index=200&type=chunk) - Credit risk is concentrated, with one purchaser accounting for **60%** of total oil and gas receivables at March 31, 2022, though significant credit losses have not been experienced[195](index=195&type=chunk) [Controls and Procedures](index=32&type=section&id=Item%209A.%20Controls%20and%20Procedures) Management concluded that disclosure controls and internal control over financial reporting were effective as of March 31, 2022, with no material changes reported - Management, including the CEO and CFO, assessed and concluded the company's internal control over financial reporting was effective as of March 31, 2022, based on the COSO 2013 framework[203](index=203&type=chunk)[205](index=205&type=chunk) - The company's disclosure controls and procedures were also evaluated and found to be effective as of March 31, 2022[206](index=206&type=chunk) Part III [Directors, Compensation, and Related Party Transactions](index=33&type=section&id=Items%2010-14) Information on directors, executive compensation, security ownership, and related party transactions is incorporated by reference from the separately filed 2022 Proxy Statement - Detailed information for Items 10 through 14 is incorporated by reference from the definitive Proxy Statement to be filed within 120 days of the fiscal year-end[209](index=209&type=chunk)[211](index=211&type=chunk)[212](index=212&type=chunk)[213](index=213&type=chunk)[214](index=214&type=chunk) Financial Statements and Notes [Consolidated Financial Statements](index=41&type=section&id=Consolidated%20Financial%20Statements) Audited consolidated financial statements for fiscal 2022 show significant improvement, with total assets at **$13.3 million**, liabilities reduced to **$1.1 million**, and net income surging to **$2.86 million** Consolidated Balance Sheet Highlights (as of March 31) | Account | 2022 | 2021 | | :--- | :--- | :--- | | Total Current Assets ($) | $2,733,539 | $757,494 | | Property and Equipment, Net ($) | $10,132,902 | $9,768,943 | | Total Assets ($) | $13,284,520 | $10,830,687 | | Total Current Liabilities ($) | $263,763 | $138,534 | | Long-Term Debt ($) | $0 | $1,154,949 | | Total Liabilities ($) | $1,059,904 | $2,007,280 | | Total Stockholders' Equity ($) | $12,224,616 | $8,823,407 | Consolidated Statement of Operations Highlights (Years Ended March 31) | Account | 2022 | 2021 | | :--- | :--- | :--- | | Total Operating Revenues ($) | $6,587,780 | $2,799,004 | | Operating Income ($) | $2,881,238 | $158,701 | | Net Income ($) | $2,855,066 | $155,932 | | Diluted EPS ($) | $1.32 | $0.08 | [Note 5: Long-Term Debt](index=49&type=section&id=Note%205.%20Long-Term%20Debt) In fiscal 2022, the company fully repaid its **$1.18 million** outstanding debt, resulting in a zero balance by March 31, 2022, with a **$1.5 million** credit facility available Credit Facility Activity (Years Ended March 31) | Activity | Principal Amount ($) | | :--- | :--- | | Balance at March 31, 2021 | $1,180,000 | | Borrowings (FY 2022) | $275,000 | | Repayments (FY 2022) | $1,455,000 | | **Balance at March 31, 2022** | **$0** | - The credit facility has a borrowing base of **$1,500,000**, which was fully available as of March 31, 2022[326](index=326&type=chunk)[327](index=327&type=chunk) [Note 16: Oil and Gas Reserve Data (Unaudited)](index=56&type=section&id=Note%2016.%20Oil%20and%20Gas%20Reserve%20Data%20%28Unaudited%29) Unaudited proved oil and gas reserves increased to **1.616 MMBOE**, with PUDs at **37%**; the standardized measure rose to **$25.9 million** due to higher prices Changes in Proved Reserves (BOE) | Description | Oil (Bbls) | Gas (Mcf) | | :--- | :--- | :--- | | As of March 31, 2021 | 738,000 | 4,595,000 | | Revisions/Purchases/Discoveries (Net) | 133,000 | 641,000 | | Production | (62,000) | (394,000) | | **As of March 31, 2022** | **809,000** | **4,842,000** | - At March 31, 2022, Proved Undeveloped Reserves (PUDs) were estimated at **590 MBOE**, representing **37%** of total proved reserves[370](index=370&type=chunk) Standardized Measure of Discounted Future Net Cash Flows | Metric | March 31, 2022 | March 31, 2021 | | :--- | :--- | :--- | | Standardized Measure ($) | $25,920,000 | $12,763,000 | - The increase in the standardized measure was primarily driven by a **$16.8 million** positive change from higher prices and adjusted production costs[381](index=381&type=chunk)

PART I. FINANCIAL INFORMATION [Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements) Financial statements reflect significant improvement in financial health, with increased assets and equity, and a turnaround to net income driven by higher oil and gas revenues [Consolidated Balance Sheets](index=4&type=section&id=Consolidated%20Balance%20Sheets) Balance sheets show total assets increased to **$12.07 million** and liabilities decreased to **$1.04 million**, boosting equity to **$11.04 million** Consolidated Balance Sheet Highlights (Unaudited) | Account | Dec 31, 2021 | Mar 31, 2021 | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $880,190 | $57,813 | | Total current assets | $1,652,037 | $757,494 | | Property and equipment, net | $10,012,520 | $9,768,943 | | Total assets | $12,073,396 | $10,830,687 | | **Liabilities & Equity** | | | | Total current liabilities | $208,359 | $138,534 | | Long-term debt | $0 | $1,154,949 | | Total liabilities | $1,035,210 | $2,007,280 | | Total stockholders' equity | $11,038,186 | $8,823,407 | [Consolidated Statements of Operations](index=5&type=section&id=Consolidated%20Statements%20of%20Operations) Statements of operations show a significant turnaround to **$1.86 million** net income for nine months, driven by doubled operating revenues Operating Results (Unaudited) | Metric | Three Months Ended Dec 31, 2021 | Three Months Ended Dec 31, 2020 | Nine Months Ended Dec 31, 2021 | Nine Months Ended Dec 31, 2020 | | :--- | :--- | :--- | :--- | :--- | | Total operating revenues | $1,595,344 | $699,894 | $4,413,023 | $1,706,392 | | Operating income (loss) | $756,379 | $26,073 | $1,880,391 | ($272,113) | | Net income (loss) | $753,302 | $80,497 | $1,857,136 | ($261,143) | | Basic EPS | $0.36 | $0.04 | $0.89 | ($0.13) | | Diluted EPS | $0.35 | $0.04 | $0.87 | ($0.13) | [Consolidated Statements of Cash Flows](index=7&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Cash flows show operating activities provided **$2.73 million**, leading to an **$822k** increase in cash and equivalents by period end Cash Flow Summary (Unaudited) | Cash Flow Activity | Nine Months Ended Dec 31, 2021 | Nine Months Ended Dec 31, 2020 | | :--- | :--- | :--- | | Net cash provided by operating activities | $2,728,586 | $372,863 | | Net cash used in investing activities | ($1,021,849) | ($818,597) | | Net cash (used in) provided by financing activities | ($884,360) | $452,369 | | **Net increase in cash and cash equivalents** | **$822,377** | **$6,635** | | **Cash and cash equivalents at end of period** | **$880,190** | **$41,016** | [Notes to Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) Notes detail oil and gas operations, accounting policies, zero long-term debt, no derivatives, and recent mineral interest acquisitions - The company's oil and gas interests are centered in West Texas and Southeastern New Mexico, with all interests operated by other parties[17](index=17&type=chunk) - As of December 31, 2021, the company had no derivative contracts. It previously used crude oil put options which expired in 2020[24](index=24&type=chunk) - The company had no balance outstanding on its line of credit as of December 31, 2021, having made net repayments of **$1,180,000** during the first nine months of the fiscal year[41](index=41&type=chunk) - In January 2022, the company invested an additional **$25,000** in a limited liability company focused on mineral interests in Ohio. In February 2022, it agreed to purchase overriding royalty interests in Texas for **$567,000**[53](index=53&type=chunk)[54](index=54&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=14&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses significant financial improvement from higher oil/gas prices and production, debt repayment, and future drilling plans [Liquidity and Capital Resources](index=16&type=section&id=Liquidity%20and%20Capital%20Resources) Liquidity improved with working capital at **$1.44 million** and operating cash flow at **$2.73 million**, supporting debt repayment Cash Flow Changes (Nine Months Ended Dec 31) | Activity | 2021 | 2020 | % Difference | | :--- | :--- | :--- | :--- | | Net cash provided by operating activities | $2,728,586 | $372,863 | 632% | | Net cash used in investing activities | ($1,021,849) | ($818,597) | 25% | | Net cash (used in) provided by financing activities | ($884,360) | $452,369 | (295)% | - Working capital increased by **$824,718** to **$1,443,678** at December 31, 2021, compared to March 31, 2021[62](index=62&type=chunk) [Oil and Natural Gas Property Development](index=17&type=section&id=Oil%20and%20Natural%20Gas%20Property%20Development) The company plans to participate in 43 horizontal wells in the Delaware Basin for **$1.2 million** in fiscal 2022 - The company plans to participate in **43** horizontal wells in the Delaware Basin during fiscal 2022 at an estimated cost of approximately **$1,200,000**[68](index=68&type=chunk) - The company participated in multiple drilling and completion projects in the Delaware Basin, including wells in the Wolfcamp, Bone Spring, and Lower Wolfcamp Shale formations[69](index=69&type=chunk)[72](index=72&type=chunk)[75](index=75&type=chunk) [Results of Operations](index=18&type=section&id=Results%20of%20Operations) Operating results show a dramatic improvement with **159%** revenue growth to **$4.37 million** and **$1.86 million** net income Q3 FY2022 vs Q3 FY2021 Sales Performance | Metric | 2021 | 2020 | % Difference | | :--- | :--- | :--- | :--- | | **Oil** | | | | | Revenue | $1,073,078 | $520,261 | 106.3% | | Volume (bbls) | 14,142 | 13,004 | 8.8% | | Average Price (per bbl) | $75.88 | $40.01 | 89.7% | | **Gas** | | | | | Revenue | $500,906 | $171,982 | 191.3% | | Volume (mcf) | 91,534 | 82,688 | 10.7% | | Average Price (per mcf) | $5.47 | $2.08 | 163.0% | Nine Months Ended Dec 31 Sales Performance | Metric | 2021 | 2020 | % Difference | | :--- | :--- | :--- | :--- | | **Oil** | | | | | Revenue | $3,193,315 | $1,307,588 | 144.2% | | Volume (bbls) | 45,857 | 37,681 | 21.7% | | Average Price (per bbl) | $69.64 | $34.70 | 100.7% | | **Gas** | | | | | Revenue | $1,177,405 | $378,798 | 210.8% | | Volume (mcf) | 274,204 | 251,094 | 9.2% | | Average Price (per mcf) | $4.29 | $1.51 | 184.1% | - General and administrative expenses for the nine months increased **25%** to **$794,961** from **$634,526**, primarily due to higher bonuses, director's fees, and stock option compensation expense[95](index=95&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=20&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) Primary market risks include commodity price volatility, with a **$10/bbl** oil price change impacting pretax income by **$458k** - The most significant market risk is energy price volatility. WTI crude prices ranged from **$43.60** to **$80.63** per barrel in the last twelve months[100](index=100&type=chunk)[101](index=101&type=chunk) - A **$10/bbl** change in oil price would alter nine-month pretax income by **$458,570**[102](index=102&type=chunk) - A **$1/mcf** change in gas price would alter nine-month pretax income by **$274,204**[102](index=102&type=chunk) - The company has significant credit risk concentration, with one purchaser representing **71%** (**$530,696**) of total oil and gas receivables as of December 31, 2021[99](index=99&type=chunk) [Controls and Procedures](index=20&type=section&id=Item%204.%20Controls%20and%20Procedures) Disclosure controls and procedures were effective as of December 31, 2021, with no material changes to internal controls - Management concluded that as of December 31, 2021, the company's disclosure controls and procedures were effective[103](index=103&type=chunk) - No material changes to internal control over financial reporting occurred during the nine months ended December 31, 2021[104](index=104&type=chunk) PART II. OTHER INFORMATION [Legal Proceedings](index=21&type=section&id=Item%201.%20Legal%20Proceedings) The company is not aware of any material legal or governmental proceedings against its operations or financial condition - The company is not aware of any material legal or governmental proceedings against it[106](index=106&type=chunk) [Risk Factors](index=21&type=section&id=Item%201A.%20Risk%20Factors) No material changes to risk factors previously disclosed in the 2021 Annual Report on Form 10-K - No material changes have been made to the risk factors disclosed in the 2021 Annual Report on Form 10-K[107](index=107&type=chunk) [Exhibits](index=21&type=section&id=Item%206.%20Exhibits) Exhibits include CEO and CFO certifications and Inline XBRL data files as required by regulations - Exhibits filed include CEO and CFO certifications (31.1, 31.2, 32.1) and Inline XBRL documents[108](index=108&type=chunk)

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D. C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2021 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File No. 1-31785 MEXCO ENERGY CORPORATION (Exact name of registrant as specified in its charter) Colorado 84-0627918 (State or other jurisdiction of ( ...

Financial Performance - For the quarter ended June 30, 2021, net income was $395,006 compared to a net loss of $299,670 for the same quarter in 2020, primarily due to increased operating revenues from higher oil and gas prices and production [75]. - Revenue from oil and gas sales was $1,255,565 for the quarter ended June 30, 2021, a 245% increase from $364,179 for the same quarter in 2020 [76]. - Cash flow provided by operating activities was $666,054 for the three months ended June 30, 2021, a 902% increase from $66,472 for the same period in 2020 [59]. Oil and Gas Revenue - Oil revenue was $987,103 for the quarter ended June 30, 2021, a 249.6% increase from $282,370 in the same quarter of 2020, with an average price per barrel of $63.94, up 161.2% from $24.48 [76]. - Gas revenue was $268,462 for the quarter ended June 30, 2021, a 228.2% increase from $81,809 in the same quarter of 2020, with an average price per mcf of $2.98, up 189.3% from $1.03 [76]. Costs and Expenses - Production costs were $276,987 for the three months ended June 30, 2021, a 61% increase from $171,666 for the same period in 2020 [76]. - General and administrative expenses were $308,167 for the three months ended June 30, 2021, a 24% increase from $248,878 for the same period in 2020 [78]. Working Capital and Debt - As of June 30, 2021, the company had working capital of $626,850, an increase of $7,890 from $618,960 at March 31, 2021 [57]. - The company has no off-balance sheet debt or unrecorded obligations as of June 30, 2021 [74]. - As of June 30, 2021, the outstanding loan balance under the credit agreement was $800,000, with a potential annual pretax income change of $8,000 for each 1% change in interest rates [81]. Credit Risk - The largest credit risk associated with a single purchaser was $495,512, representing 74% of total oil and gas receivables, with no significant credit losses reported [82]. - The company has not experienced significant credit losses despite the high concentration of credit risk [82]. Market Conditions - The NYMEX West Texas Intermediate (WTI) crude oil price ranged from $31.75 per barrel in October 2020 to $70.03 per barrel in June 2021, while the Henry Hub natural gas price ranged from $1.33 per MMBtu to $23.86 per MMBtu during the same period [86]. - On June 30, 2021, the WTI crude oil price was $69.45 per barrel, and the Henry Hub natural gas price was $3.79 per MMBtu [86]. - A $10 increase or decrease in average oil price for the quarter ended June 30, 2021, would have resulted in a $154,380 change in pretax income [88]. - A $1 increase or decrease in average gas price for the same quarter would have led to a $90,063 change in pretax income [88]. - Declines in oil and natural gas prices could materially adversely affect the company's financial condition, liquidity, and ability to obtain financing [87]. - Improvements in oil and gas prices can positively impact the company's financial condition and capital resources [88]. - The volatility in oil and natural gas prices is expected to continue, influenced by global demand, supply levels, and geopolitical factors [85]. Future Plans - The company plans to participate in the drilling and completion of 36 horizontal wells at an estimated aggregate cost of approximately $1,250,000 for the fiscal year ending March 31, 2022 [64].

PART I [Business](index=4&type=section&id=Item%201.%20Business) Mexco Energy Corporation is an independent oil and gas company focused on acquisition, exploration, and production in the U.S., primarily in the Permian Basin, with 1.504 MMBOE proved reserves - The company is an independent oil and gas entity engaged in acquisition, exploration, development, and production of crude oil and natural gas in the U.S.[11](index=11&type=chunk) - The majority of the company's activities are centered in the Permian Basin (West Texas and Southeastern New Mexico), which accounts for **80% of its discounted future net cash flows** and **86% of gross revenues**[16](index=16&type=chunk)[26](index=26&type=chunk) - All of the company's oil and gas interests are operated by others; Mexco acquires working, royalty, and mineral interests rather than operating properties itself[16](index=16&type=chunk) - The business environment in fiscal 2021 was challenging due to the COVID-19 pandemic, which reduced energy demand and caused extreme commodity price volatility, but prices recovered to pre-pandemic levels by Q4 FY2021[21](index=21&type=chunk)[22](index=22&type=chunk)[23](index=23&type=chunk) Proved Reserves and Present Value (as of March 31, 2021) | Metric | Value | | :--- | :--- | | Total Estimated Proved Reserves | 1.504 million BOE | | Oil and NGLs Percentage | 49% | | Natural Gas Percentage | 51% | | Estimated Present Value (PV-10) | ~$14 million | [Company Profile and Strategy](index=5&type=section&id=Company%20Profile%20and%20Strategy) Mexco's strategy focuses on acquiring proved oil and gas reserves, primarily working, royalty, and mineral interests, with all properties operated by third parties - The company's primary strategy is to acquire proved reserves, preferably with value in producing wells, behind pipe reserves, and high-quality undeveloped locations[15](index=15&type=chunk) - From 1983 to 2021, Mexco completed approximately **80 acquisitions** of producing oil and gas properties, including royalties, overriding royalties, minerals, and working interests[17](index=17&type=chunk) [Oil and Gas Operations](index=6&type=section&id=Oil%20and%20Gas%20Operations) Mexco's operations are heavily concentrated in the Permian Basin, representing 80% of future net cash flows, with interests in approximately 6,400 producing wells Key Operational Area Contribution (FY2021) | Basin | % of Discounted Future Net Cash Flows | % of Gross Revenues | | :--- | :--- | :--- | | Delaware Basin | 52% | 66% | | Midland Basin | 14% | 14% | | **Total Permian** | **80%** | **86%** | - As of March 31, 2021, the company owned partial interests in approximately **6,400 producing wells** located across 14 U.S. states[31](index=31&type=chunk) Historical Oil and Gas Production | Year | Oil (Bbls) | Gas (Mcf) | | :--- | :--- | :--- | | 2021 | 50,327 | 324,205 | | 2020 | 44,301 | 294,007 | | 2019 | 35,359 | 295,133 | | 2018 | 34,743 | 318,774 | | 2017 | 34,689 | 356,268 | [Major Customers and Competition](index=7&type=section&id=Major%20Customers%20and%20Competition) Mexco operates in a highly competitive oil and gas industry, with significant revenue concentration from one major customer, though a ready market mitigates risk Major Customer Revenue Concentration | Customer | % of Revenues (FY 2021) | % of Revenues (FY 2020) | | :--- | :--- | :--- | | Company A | 66% | 52% | - The company does not believe the loss of any individual customer would have a material adverse effect on its financial position, as a ready market exists for oil and gas production[38](index=38&type=chunk) [Executive Officers and Employees](index=9&type=section&id=Executive%20Officers%20and%20Employees) The company is led by a small team of experienced executive officers and had two full-time and three part-time employees as of March 31, 2021 Executive Officers (as of March 31, 2021) | Name | Age | Position | | :--- | :--- | :--- | | Nicholas C. Taylor | 83 | Chairman and Chief Executive Officer | | Tamala L. McComic | 52 | President, Chief Financial Officer, Treasurer, and Assistant Secretary | | Donna Gail Yanko | 76 | Vice President and Secretary | - As of March 31, 2021, the company had **two full-time and three part-time employees**[53](index=53&type=chunk) [Risk Factors](index=10&type=section&id=Item%201A.%20Risk%20Factors) The company faces significant risks related to volatile commodity prices, operational challenges, regulatory compliance, reserve estimates, and common stock matters including dilution and CEO influence [Risks Related to Business and Industry](index=10&type=section&id=Risks%20Related%20to%20Business%20and%20Industry) The company's operations are subject to industry-specific risks including volatile commodity prices, global events, regulations, reserve uncertainty, operational hazards, and limited control as a non-operator - Oil and gas price volatility significantly affects profitability, cash flow, and the ability to fund capital expenditures; lower prices can lead to ceiling test writedowns and reduce economically recoverable reserves[59](index=59&type=chunk)[60](index=60&type=chunk) - The COVID-19 pandemic created significant economic disruption, reducing demand for oil and gas, and while prices recovered, the continued spread of the virus remains a risk[63](index=63&type=chunk) - Approximately **32% of the company's total estimated net proved reserves** at March 31, 2021, were undeveloped, and their recovery requires significant capital expenditures and successful drilling[70](index=70&type=chunk) - As a non-operator for all its properties, the company has limited control over operating procedures, expenditures, and future development, which could reduce production and revenues[81](index=81&type=chunk) - The company is dependent on its key personnel, particularly CEO Nicholas C. Taylor, who beneficially owns approximately **46% of the common stock** and has significant influence over business strategy and operations[92](index=92&type=chunk)[93](index=93&type=chunk) [Risks Related to Common Stock](index=17&type=section&id=Risks%20Related%20to%20Common%20Stock) Ownership of Mexco's common stock carries risks including potential dilution, absence of dividends, significant influence by executive officers, and historical price volatility - The company has never paid cash dividends and does not anticipate paying any in the foreseeable future, intending to retain all future earnings to fund business development[96](index=96&type=chunk) - As of March 31, 2021, executive officers and directors beneficially owned approximately **51% of the common stock**, enabling them to significantly influence all matters requiring stockholder approval[98](index=98&type=chunk) - The market price of the company's common stock has been and could continue to be volatile due to factors like commodity prices, political conditions, and limited trading volume[99](index=99&type=chunk) [Unresolved Staff Comments](index=18&type=section&id=Item%201B.%20Unresolved%20Staff%20Comments) The company reports no unresolved staff comments - None[102](index=102&type=chunk) [Properties](index=18&type=section&id=Item%202.%20Properties) As of March 31, 2021, Mexco's properties included interests in approximately 6,400 gross wells and 586,000 gross acres, with proved reserves estimated at 1.504 MMBOE, a decrease from the prior year - As of March 31, 2021, the company had interests in approximately **6,400 gross (20 net) oil and gas wells** and owned interests in approximately **586,000 gross (3,169 net) acres**[103](index=103&type=chunk) - Downward revisions in fiscal 2021 were primarily due to reserves being written off because of the five-year development limitation, mainly affecting working interests in the Wolfcamp B Zone in Upton and Reagan Counties, Texas[116](index=116&type=chunk) Proved Reserves Summary (as of March 31) | Metric | 2021 | 2020 | | :--- | :--- | :--- | | Total Net Proved Reserves (BOE) | 1,503,970 | 1,816,195 | | PV-10 Value | $13,758,300 | $21,636,700 | | Standardized Measure | $12,763,000 | $18,976,000 | | Oil Price Used (per Bbl) | $37.42 | $53.23 | | Gas Price Used (per Mcf) | $2.29 | $1.66 | [Drilling Activities and Production](index=20&type=section&id=Drilling%20Activities%20and%20Production) In fiscal 2021, the company participated in drilling 25 gross development wells, with total production increasing to 104,361 BOE from the prior year Drilling Activity (Working Interest) | Well Type | FY 2021 (Gross/Net) | FY 2020 (Gross/Net) | | :--- | :--- | :--- | | Exploratory Wells | 0 / 0 | 0 / 0 | | Development Wells | 25 / 0.13 | 58 / 0.18 | Net Production and Average Prices | Metric | 2021 | 2020 | | :--- | :--- | :--- | | Oil Production (Bbls) | 50,327 | 44,301 | | Avg. Oil Price (per Bbl) | $40.31 | $52.15 | | Gas Production (Mcf) | 324,205 | 294,007 | | Avg. Gas Price (per Mcf) | $2.30 | $1.40 | | Total BOE | 104,361 | 93,302 | [Legal Proceedings](index=23&type=section&id=Item%203.%20Legal%20Proceedings) The company is not aware of any material legal or governmental proceedings against it - The company is not aware of any legal or governmental proceedings against it, or contemplated to be brought against it[127](index=127&type=chunk) [Mine Safety Disclosures](index=23&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the company - Not applicable[128](index=128&type=chunk) PART II [Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities](index=23&type=section&id=Item%205.%20Market%20for%20Registrant%27s%20Common%20Equity%2C%20Related%20Stockholder%20Matters%20and%20Issuer%20Purchases%20of%20Equity%20Securities) Mexco's common stock trades on the NYSE American, experienced volatility, has never paid dividends, and authorized a share repurchase program with no shares bought in fiscal 2021 - The company's common stock trades on the NYSE American under the symbol "**MXC**"[129](index=129&type=chunk) - The company has never declared or paid cash dividends and does not anticipate paying any in the foreseeable future, as it intends to retain earnings for business operations and development[133](index=133&type=chunk) - In September 2020, the Board authorized a share repurchase program of up to **$250,000**, but no shares were repurchased under this program during the fiscal year ended March 31, 2021[136](index=136&type=chunk)[137](index=137&type=chunk) [Selected Consolidated Financial Data](index=24&type=section&id=Item%206.%20Selected%20Consolidated%20Financial%20Data) This item is not applicable to the company - Not applicable[138](index=138&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=24&type=section&id=Item%207.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) For fiscal 2021, Mexco reported net income of $155,932, a turnaround from a prior year loss, driven by increased natural gas sales and reduced G&A expenses Financial Performance Summary (FY2021 vs FY2020) | Metric | FY 2021 | FY 2020 | | :--- | :--- | :--- | | Net Income (Loss) | $155,932 | ($99,478) | | Total Oil & Gas Sales | $2,773,779 | $2,720,353 | | Cash from Operations | $710,047 | $864,960 | - The increase in net income was primarily due to an **81.6% rise in natural gas revenue**, driven by a **64.3% increase in average price per Mcf**, and a **17% decrease in general and administrative expenses**[164](index=164&type=chunk)[165](index=165&type=chunk)[167](index=167&type=chunk) - The company participated in the drilling and completion of **22 horizontal wells** in the Delaware Basin during fiscal 2021 at a cost of approximately **$1,030,000**[149](index=149&type=chunk) [Liquidity and Capital Resources](index=24&type=section&id=Liquidity%20and%20Capital%20Resources) The company funds operations through cash flow, borrowings, and asset sales; in fiscal 2021, operating cash flow was $710,047, and working capital increased to $618,960 Summary of Cash Flows (For the Years Ended March 31) | Cash Flow Activity | 2021 | 2020 | | :--- | :--- | :--- | | Net cash provided by operating activities | $710,047 | $864,960 | | Net cash used in investing activities | ($1,387,624) | ($1,741,565) | | Net cash provided by financing activities | $701,009 | $782,734 | - Working capital increased by **$409,849** during fiscal 2021, reaching **$618,960** as of March 31, 2021[147](index=147&type=chunk) [Results of Operations](index=27&type=section&id=Results%20of%20Operations) Mexco's net income improved to $155,932 in fiscal 2021, driven by increased natural gas sales and reduced operating expenses, despite a decline in average oil prices Oil and Gas Sales Breakdown (FY2021 vs FY2020) | Category | 2021 | 2020 | % Difference | | :--- | :--- | :--- | :--- | | **Oil Revenue** | **$2,028,792** | **$2,310,127** | **(12.1)%** | | Oil Volume (bbls) | 50,327 | 44,301 | 13.6% | | Avg. Oil Price (per bbl) | $40.31 | $52.15 | (22.7)% | | **Gas Revenue** | **$744,987** | **$410,226** | **81.6%** | | Gas Volume (mcf) | 324,205 | 294,007 | 10.3% | | Avg. Gas Price (per mcf) | $2.30 | $1.40 | 64.3% | - Production costs decreased by **5%** in fiscal 2021 due to wells being shut-in during May 2020 and operator cost-cutting measures[165](index=165&type=chunk) - General and administrative expenses decreased by **17%** in fiscal 2021, primarily due to lower salaries, contract services, and professional fees[167](index=167&type=chunk) [Critical Accounting Policies and Estimates](index=28&type=section&id=Critical%20Accounting%20Policies%20and%20Estimates) The company's financial statements rely on critical accounting policies, primarily the full cost method for oil and gas properties, requiring a quarterly ceiling test for impairment, and the estimation of proved reserves - The company uses the full cost method of accounting, capitalizing all costs associated with property acquisition, exploration, and development[174](index=174&type=chunk) - A quarterly ceiling test is required under the full cost method, which limits the book value of oil and gas properties to the after-tax present value of future net cash flows from proved reserves; exceeding this limit results in a non-cash impairment charge[177](index=177&type=chunk) - Estimates of proved reserves are critical as they materially impact DD&A expense and the ceiling test; these estimates are inherently uncertain and depend on numerous assumptions[179](index=179&type=chunk)[181](index=181&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=31&type=section&id=Item%207A.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company's primary market risks stem from volatile commodity prices and interest rates, with significant exposure to energy price fluctuations and credit risk concentration from a major customer - The most significant market risk is the pricing of crude oil and natural gas production, which is highly volatile and unpredictable[199](index=199&type=chunk) - A **+/- $10 per barrel** change in the average oil price for fiscal 2021 would have changed oil revenue by **$503,270**; a **+/- $1 per Mcf** change in the average gas price would have changed natural gas revenue by **$324,205**[204](index=204&type=chunk) - At March 31, 2021, the company had a **$1,180,000 loan balance** with a variable interest rate; a one percentage point change in the rate would alter annual pretax income by **$11,800**[197](index=197&type=chunk) - The company has credit risk concentration, with its largest purchaser accounting for **71% of total oil and gas receivables** as of March 31, 2021[198](index=198&type=chunk) [Financial Statements and Supplementary Data](index=32&type=section&id=Item%208.%20Financial%20Statements%20and%20Supplementary%20Data) This section incorporates by reference the company's consolidated financial statements and supplementary data located on pages F1 through F24 - The information required by this item appears on pages **F1 through F24** of the report[205](index=205&type=chunk) [Changes in and Disagreements with Accountants on Accounting and Financial Disclosures](index=32&type=section&id=Item%209.%20Changes%20in%20and%20Disagreements%20with%20Accountants%20on%20Accounting%20and%20Financial%20Disclosures) The company reports no changes in or disagreements with its accountants on accounting and financial disclosures - None[206](index=206&type=chunk) [Controls and Procedures](index=33&type=section&id=Item%209A.%20Controls%20and%20Procedures) Management concluded that the company's internal control over financial reporting and disclosure controls and procedures were effective as of March 31, 2021 - Management concluded that the company's internal control over financial reporting was effective as of March 31, 2021[208](index=208&type=chunk) - The principal executive officer and principal financial officer concluded that the company's disclosure controls and procedures were effective as of March 31, 2021[209](index=209&type=chunk) [Other Information](index=33&type=section&id=Item%209B.%20Other%20Information) The company reports no other information for this item - None[211](index=211&type=chunk) PART III [Directors, Executive Officers and Corporate Governance](index=33&type=section&id=Item%2010.%20Directors%2C%20Executive%20Officers%20and%20Corporate%20Governance) Information regarding directors, executive officers, and corporate governance is incorporated by reference from the 2021 Proxy Statement - Information is incorporated by reference from the Proxy Statement for the Annual Meeting of Stockholders to be held September 9, 2021[211](index=211&type=chunk) [Executive Compensation](index=33&type=section&id=Item%2011.%20Executive%20Compensation) Information regarding executive compensation is incorporated by reference from the 2021 Proxy Statement - Information is incorporated by reference from the Proxy Statement under the caption "Executive Compensation"[213](index=213&type=chunk) [Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters](index=33&type=section&id=Item%2012.%20Security%20Ownership%20of%20Certain%20Beneficial%20Owners%20and%20Management%20and%20Related%20Stockholder%20Matters) Information regarding security ownership is incorporated by reference from the 2021 Proxy Statement - Information is incorporated by reference from the Proxy Statement under the captions "Security Ownership of Certain Beneficial Owners and Management" and "Employee Incentive Stock Option Plans"[214](index=214&type=chunk) [Certain Relationships and Related Transactions, and Director Independence](index=34&type=section&id=Item%2013.%20Certain%20Relationships%20and%20Related%20Transactions%2C%20and%20Director%20Independence) Information regarding related party transactions and director independence is incorporated by reference from the 2021 Proxy Statement - Information is incorporated by reference from the Proxy Statement under the captions "Certain Relationships and Related Transactions" and "Meetings and Committees of the Board of Directors"[215](index=215&type=chunk) [Principal Accounting Fees and Services](index=34&type=section&id=Item%2014.%20Principal%20Accounting%20Fees%20and%20Services) Information regarding principal accounting fees and services is incorporated by reference from the 2021 Proxy Statement - Information is incorporated by reference from the Proxy Statement under the caption "Audit Fees and Services"[216](index=216&type=chunk) PART IV [Exhibits and Financial Statement Schedules](index=34&type=section&id=Item%2015.%20Exhibits%20and%20Financial%20Statement%20Schedules) This section lists the consolidated financial statements, financial statement schedules, and exhibits filed as part of the Form 10-K - A list of consolidated financial statements is provided in the "Index to Consolidated Financial Statements" on page **F-1**[217](index=217&type=chunk) - A list of exhibits filed with the Form 10-K is provided in the "Index to Exhibits" on page **F-25**[218](index=218&type=chunk) Financial Statements and Notes [Consolidated Financial Statements](index=43&type=section&id=Consolidated%20Financial%20Statements) The consolidated financial statements show total assets increased to $10.83 million, net income of $155,932, and total stockholders' equity rose to $8.82 million in fiscal 2021 Key Financial Metrics (as of March 31) | Metric | 2021 | 2020 | | :--- | :--- | :--- | | Total Assets | $10,830,687 | $10,070,509 | | Total Liabilities | $2,007,280 | $1,706,147 | | Total Stockholders' Equity | $8,823,407 | $8,364,362 | | Net Income (Loss) | $155,932 | ($99,478) | | Diluted EPS | $0.08 | ($0.05) | [Notes to Consolidated Financial Statements](index=47&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) The notes detail accounting policies, including the full cost method and ceiling test, long-term debt, deferred tax assets, and unaudited oil and gas reserve data - The company accounts for its oil and gas properties using the full cost method, capitalizing all costs of acquisition, exploration, and development[290](index=290&type=chunk) - As of March 31, 2021, the company had **$1,180,000 outstanding** on its credit facility, which matures in March 2023[329](index=329&type=chunk)[330](index=330&type=chunk) - The company has a net deferred tax asset of **$1,258,401** as of March 31, 2021, but has recorded a full valuation allowance against it, believing it is more likely than not that the asset will not be realized[342](index=342&type=chunk)[346](index=346&type=chunk) - In May 2020, the company received a PPP loan of approximately **$68,600**, which was fully forgiven in November 2020[370](index=370&type=chunk)[371](index=371&type=chunk) [Note 16. Oil and Gas Reserve Data (Unaudited)](index=59&type=section&id=Note%2016.%20Oil%20and%20Gas%20Reserve%20Data%20%28Unaudited%29) This note provides unaudited data on proved oil and gas reserves, which decreased in fiscal 2021 due to downward revisions, with PUDs at 484 MBOE Changes in Proved Reserves (FY2021) | Category | Oil (Bbls) | Natural Gas (Mcf) | | :--- | :--- | :--- | | **As of March 31, 2020** | **1,008,000** | **4,850,000** | | Revision of previous estimates | (292,000) | (200,000) | | Extensions and discoveries | 92,000 | 283,000 | | Sales of minerals in place | (20,000) | (14,000) | | Production | (50,000) | (324,000) | | **As of March 31, 2021** | **738,000** | **4,595,000** | Standardized Measure of Discounted Future Net Cash Flows | Date | Value | | :--- | :--- | | March 31, 2021 | $12,763,000 | | March 31, 2020 | $18,976,000 | - At March 31, 2021, proved undeveloped reserves (PUDs) were **484 MBOE**, accounting for **32% of total estimated proved reserves**[376](index=376&type=chunk)

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D. C. 20549 FORM 10-Q [X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended December 31, 2020 OR [ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File No. 1-31785 MEXCO ENERGY CORPORATION (Exact name of registrant as specified in its charter) Colorado 84-0627918 (State or other jurisdiction o ...