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Income Taxes
 12 Months Ended
Dec. 31, 2024
Income Taxes  
Income Taxes

10. Income Taxes

 

The Company did not recognize a provision (benefit) for income taxes for the years ended December 31, 2024 and 2023.

 

The significant components of net deferred tax assets at December 31, 2024 and 2023 were as follows:

 

 

 

2024

 

 

2023

 

Deferred tax assets

 

 

 

 

 

 

Net operating loss carry forwards

 

$3,661,000

 

 

$5,205,300

 

Mineral properties

 

 

201,100

 

 

 

222,300

 

Asset retirement obligation

 

 

16,000

 

 

 

9,100

 

Stock based compensation

 

 

629,000

 

 

 

629,000

 

Other

 

 

26,500

 

 

 

24,500

 

Total deferred tax assets

 

 

4,533,600

 

 

 

6,090,200

 

Valuation allowance

 

 

(3,176,700)

 

 

(4,506,700)

 

 

 

1,356,900

 

 

 

1,583,500

 

Deferred tax liabilities

 

 

 

 

 

 

 

 

Property, plant, and equipment

 

 

(1,356,900)

 

 

(1,583,500)

Asset retirement obligation

 

 

-

 

 

 

-

 

Total deferred tax liabilities

 

 

(1,356,900)

 

 

(1,583,500)

 

 

 

 

 

 

 

 

 

Net deferred tax assets

 

$-

 

 

$-

 

 

At December 31, 2024 and 2023, 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, 2023 and 2022.

 

At December 31, 2024, the Company had net operating loss carry forwards of approximately $14,311,000 for federal purposes, $4,684,000 which expire between 2030 through 2038. At December 31, 2024, the Company had net operating loss carry forwards of approximately $12,001,000 for state purposes, which expire between 2030 and 2042. The remaining balance of $9,627,000 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, 2024 and 2023 differ from the statutory rate of 21% as follows:

 

 

 

2024

 

 

2023

 

 

 

 

 

 

 

 

Provision (benefit) at statutory rate for the period

 

$1,838,200

 

 

$225,400

 

State taxes, net of federal taxes

 

 

401,000

 

 

 

49,200

 

Taxable grant income

 

 

106,900

 

 

 

-

 

Adjustment of prior year tax estimates

 

 

(60,900)

 

 

218,200

 

Non-deductible items

 

 

3,400

 

 

 

-

 

Depletion

 

 

(958,600)

 

 

-

 

Increase (decrease) in valuation allowance

 

 

(1,330,000)

 

 

(492,800)

Total provision (benefit)

 

$-

 

 

$-

 

 

The Company is open to examination of its income tax filings in the United States and state jurisdictions for the 2022 through 2024 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.