XML 123 R16.htm IDEA: XBRL DOCUMENT v3.23.1
Income Taxes
 12 Months Ended
Dec. 31, 2022
Income Taxes  
Income Taxes

10. Income Taxes

 

The Company did not recognize a provision (benefit) for income taxes for the years ended December 31, 2022 and 2021.

 

The significant components of net deferred tax assets at December 31, 2022 and 2021 were as follows:

 

 

 

2022

 

 

2021

 

Deferred tax assets

 

 

 

 

 

 

Net operating loss carry forward

 

$5,315,200

 

 

$4,796,000

 

Mineral properties

 

 

235,500

 

 

 

241,300

 

Asset retirement obligation

 

 

-

 

 

 

4,600

 

Stock based compensation

 

 

629,000

 

 

 

503,400

 

Other

 

 

25,600

 

 

 

16,800

 

Total deferred tax assets

 

 

6,205,300

 

 

 

5,562,100

 

Valuation allowance

 

 

(4,999,500)

 

 

(4,017,800)

 

 

 

1,205,800

 

 

 

1,544,300

 

Deferred tax liabilities

 

 

 

 

 

 

 

 

Property, plant, and equipment

 

 

(1,204,300)

 

 

(1,544,300)

Asset retirement obligation

 

 

(1,500)

 

 

-

 

Total deferred tax liabilities

 

 

(1,205,800)

 

 

(1,544,300)

 

 

 

 

 

 

 

 

 

Net deferred tax assets

 

$-

 

 

$-

 

 

At December 31, 2022 and 2021, the Company had net deferred tax assets principally arising from the net operating loss carryforward for income tax purposes. As management of the Company cannot determine that it is more likely than not that the Company will realize the benefit of the deferred tax assets, a valuation allowance equal to 100% of the net deferred tax asset exists at December 31, 2022 and 2021.

 

At December 31, 2022, the Company had net operating loss carry forwards of approximately $20,778,000 for both federal and state purposes, $11,100,000 of which expire between 2021 through 2037. The remaining balance of $9,678,000 will never expire but its utilization is limited to 80% of taxable income in any future year.

 

The income tax provision (benefit) for the years ended December 31, 2022 and 2021 differ from the statutory rate of 21% as follows:

 

 

 

2022

 

 

2021

 

 

 

 

 

 

 

 

Provision (benefit) at statutory rate for the period

 

$(552,500)

 

$(683,600)

State taxes, net of federal taxes

 

 

(144,000)

 

 

(178,200)

Change in state tax rate

 

 

173,700

 

 

 

57,000

 

Adjustment of prior year tax estimates

 

 

(458,900)

 

 

73,100

 

Increase (decrease) in valuation allowance

 

 

981,700

 

 

 

731,700

 

Total provision (benefit)

 

$-

 

 

$-

 

 

The Company is open to examination of our income tax filings in the United States and state jurisdictions for the 2020 through 2022 tax years. Tax attributes from years prior to that can be adjusted as a result of examinations. In the event that the Company is assessed penalties and or interest, penalties will be charged to other operating expense and interest will be charged to interest expense. The Company has reviewed its tax positions and believes it has not taken a position that would not be sustained under examination.