XML 57 R14.htm IDEA: XBRL DOCUMENT
v3.22.1

Note 8 - Income Taxes | 12 Months Ended
--- | ---
Dec. 31, 2021
Notes to Financial Statements |
Income Tax Disclosure [Text Block] | (8) INCOME TAXES Our income tax is different than the expected amount computed using the applicable federal statutory income tax rate of 21%. The reasons for and effects of such differences for the years ended December 31 are below (in thousands):
|  | 2021 |  |  | 2020 |
Expected amount |  | $ | (783 | ) |  | $ | (1,865 | )
State income taxes, net of federal benefit |  |  | (767 | ) |  |  | (644 | )
Percentage depletion |  |  | (1,725 | ) |  |  | (2,154 | )
Valuation allowance |  |  | 3,376 |  |  |  | 1,275 |
Stock-based compensation |  |  | 380 |  |  |  | 67 |
PPP loan forgiveness |  |  | (2,100 | ) |  |  | — |
Return to provision adjustments |  |  | 1,610 |  |  |  | (60 | )
Other |  |  | 35 |  |  |  | 723 |
|  | $ | 26 |  |  | $ | (2,658 | )
The deferred tax assets and liabilities resulting from temporary differences between book and tax basis are comprised of the following at December 31 (in thousands):
|  | 2021 |  |  | 2020 |
Deferred tax assets: |  |  |  |  |  |  |  |
Net operating loss |  | $ | 32,659 |  |  | $ | 24,081 |
Valuation allowance |  |  | (4,651 | ) |  |  | (1,275 | )
Capital loss carryforward |  |  | — |  |  |  | 525 |
Stock-based compensation |  |  | — |  |  |  | 179 |
Other |  |  | — |  |  |  | 234 |
Total deferred tax assets |  |  | 28,008 |  |  |  | 23,744 |
Deferred tax liabilities: |  |  |  |  |  |  |  |
Coal properties |  |  | (30,368 | ) |  |  | (26,171 | )
Investment in partnerships |  |  | (484 | ) |  |  | (397 | )
Other |  |  | (6 | ) |  |  | — |
Total deferred tax liabilities |  |  | (30,858 | ) |  |  | (26,568 | )
Net deferred tax liability |  | $ | (2,850 | ) |  | $ | (2,824 | )
Our effective tax rate (ETR) for 2021 was (1%) compared to 30% for 2020. The tax rate for the years ended December 31, 2021 and 2020 are not predictive of future tax rates. Our ETR differs from the statutory rate due to statutory depletion in excess of tax basis, PPP loan forgiveness, return to provision adjustments, and changes in the valuation allowance. The deduction for statutory depletion does not necessarily change proportionately to changes in income before income taxes. We recognize deferred tax assets to the extent that we believe that these assets are more likely than not to be realized. In making such a determination, we consider all available positive and negative evidence, including future reversals of existing taxable temporary differences, projected future taxable income, tax-planning strategies, and results of recent operations. We believe that it is more likely than not that the benefit from certain federal and state NOL carryforwards will not be realized. In recognition of this, we have provided a valuation allowance of $4.7 million and $1.3 on the deferred tax assets related to these state NOL carryforwards as of December 31, 2021 and 2020, respectively. We have analyzed our filing positions in all of the federal and state jurisdictions where we are required to file income tax returns, as well as all open tax years in these jurisdictions, to determine whether the positions will be more likely than not be sustained by the applicable tax authority. Tax positions not deemed to meet the more-likely-than-not threshold are not recorded as a tax benefit or expense in the current year. We identified our federal tax return and our Indiana state tax return as “major” tax jurisdictions. We believe that our income tax filing positions and deduction will be sustained on audit and do not anticipate any adjustments that will result in a material change to our consolidated financial position. While not material, we record any penalties and interest as general and administrative expense. Tax returns filed with the IRS and state entities generally remain subject to examination for three years after filing. At December 31, 2021, we had approximately $125 million and $158 million of federal and Indiana net operating loss carryforwards (“NOLs”), respectively. These NOLs are available to offset future taxable income. Federal NOLs generated in 2017 and prior years have a carryforward period of 20 years while those generated in 2018 and future years carryforward indefinitely. The federal NOLs generated in pre-2018 years of $56 million can offset 100% of the current years' taxable income. The federal NOLs generated in post 2017 years of $69 million can offset 80% of current years' taxable income. The pre-2018 federal NOLs will expire in varying amounts from 2035 to 2037 if they are not utilized. Indiana NOLs have a 20-year carryforward period and will expire in the years 2034 to 2041 if they are not utilized.

X
- References No definition available. + Details
Name: | us-gaap_DisclosureTextBlockAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 21 -URI http://asc.fasb.org/extlink&oid=121826272&loc=d3e32857-109319 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section S99 -Paragraph 2 -Subparagraph (SAB Topic 11.C) -URI http://asc.fasb.org/extlink&oid=122134291&loc=d3e330215-122817 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 17 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=121826272&loc=d3e32809-109319 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SAB TOPIC 6.I.5.Q1) -URI http://asc.fasb.org/extlink&oid=122134291&loc=d3e330036-122817 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 14 -URI http://asc.fasb.org/extlink&oid=121826272&loc=d3e32705-109319 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 270 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6424409&loc=d3e44925-109338 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -URI http://asc.fasb.org/topic&trid=2144680 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 30 -Section 50 -Paragraph 2 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=6424122&loc=d3e41874-109331 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08(h)(2)) -URI http://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690 + Details
Name: | us-gaap_IncomeTaxDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration