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Note 14 - Income Taxes | 12 Months Ended
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Jun. 30, 2022
Notes to Financial Statements |
Income Tax Disclosure [Text Block] | 14. Income Taxes
|  | Year Ended June 30, |
|  | 2022 |  |  | 2021 |
Income tax provision/(benefit) at statutory tax rate |  | $ | (4,961,540 | ) |  | $ | 5,285,909 |
State tax benefit |  |  | (1,544,567 | ) |  |  | 2,829,625 |
Return to provision |  |  | (38 | ) |  |  | (161,474 | )
Permanent differences |  |  | 12,937 |  |  |  | 472 |
Transaction costs |  |  | — |  |  |  | 73,182 |
Stock based compensation |  |  | 100,666 |  |  |  | 77,910 |
Restricted stock shortfall |  |  | — |  |  |  | 162,750 |
Legal fees |  |  | 131,311 |  |  |  | — |
Convertible debt interest |  |  | 66,463 |  |  |  | — |
162(m) Limitation |  |  | 84,822 |  |  |  | — |
Other valuation allowance |  |  | 5,990,215 |  |  |  | (6,966,500 | )
Income tax provision/(benefit) |  | $ | (119,731 | ) |  | $ | 1,301,874 |
The provision for income taxes for the periods indicated below are comprised of the following:
|  | Year Ended June 30, |
|  | 2022 |  |  | 2021 |
Current: |  |  |  |  |  |  |  |
Federal |  | $ | (261,636 | ) |  | $ | 915,234 |
State |  |  | 141,905 |  |  |  | 386,640 |
Total current income tax expense/(benefit) |  | $ | (119,731 | ) |  | $ | 1,301,874 |
Deferred: |  |  |  |  |  |  |  |
Federal |  | $ | — |  |  | $ | — |
State |  |  | — |  |  |  | — |
Total deferred income tax expense |  | $ | — |  |  | $ | — |
The net deferred tax asset is comprised of the following:
|  | Year Ended June 30, |
|  | 2022 |  |  | 2021 |
Deferred tax asset: |  |  |  |  |  |  |  |
Investment in the Peak Gold JV |  | $ | 8,278,223 |  |  | $ | 6,016,386 |
State deferred tax assets |  |  | 3,503,066 |  |  |  | 1,846,393 |
Stock option expenses |  |  | 1,425,498 |  |  |  | 1,900,850 |
Net operating losses |  |  | 2,547,058 |  |  |  | — |
Valuation allowance |  |  | (15,753,845 | ) |  |  | (9,763,629 | )
Net deferred tax assets |  | $ | — |  |  | $ | — |
On March 27, 2020, the Coronavirus Aid, Relief and Economic Security Act (the “CARES” Act) was enacted which is aimed at providing emergency assistance due to the impact of the COVID-19 pandemic. The CARES Act includes provisions related to refundable payroll tax credits, deferment of employer side social security payments, net operating loss carryback periods, alternative minimum tax credit refunds, modifications to the net interest deduction limitations and technical corrections to tax deprecation methods for qualified improvement property. The Company does not expect to be materially impacted by the CARES Act and does not anticipate the CARES Act to have a material effect on its ability to realize deferred tax assets with the exception of the relief from the 80% limitation on some of its NOLs that were fully utilized for the tax year ended June 30, 2021. At each reporting period, we weigh all positive and negative evidence to determine whether our deferred tax assets are more likely than not to be realized. As a result of this analysis at June 30, 2022, we have determined a valuation allowance is necessary as we have a history of book and tax losses with the exception of June 30, 2021, we have not generated any revenue from mineral sales or operations and do not have any recurring sources of revenue. During fiscal year 2022, we had a change in our valuation allowance of approximately $6.0 million. The Company fully utilized all U.S. federal and Alaskan tax loss carry-forwards for the tax year ended June 30, 2021 as a result of the income driven by the gain on the sale of the CORE JV Interest in connection with the Kinross Transactions. At June 30, 2022, we have U.S. federal tax loss carry-forwards of approximately $12.1 million, and state of Alaska tax loss carry-forwards of approximately $9.7 million. Use of future NOLs may be limited if we undergo an ownership change. Generally, an ownership change occurs if certain persons or groups, increase their aggregate ownership in us by more than 50 percentage points looking back over a rolling three-year period. If an ownership change occurs, our ability to use our NOLs to reduce income taxes is limited to an annual amount, or the Section 382 limitation, equal to the fair market value of our common stock immediately prior to the ownership change multiplied by the long term tax-exempt interest rate, which is published monthly by the Internal Revenue Service. In the event of an ownership change, NOLs can be used to offset taxable income for years within a carry-forward period subject to the Section 382 limitation. The Company performed an evaluation as of June 30, 2022. From June 30, 2021 to June 30, 2022 there were no ownership changes under the meaning of Section 382. The Company experienced an ownership change on March 22, 2013. Based upon the Company’s determination of its annual limitation related to this ownership change, management believes that Section 382 should not otherwise limit the Company’s ability to utilize its federal or state NOLs during their applicable carryforward periods. We did not have any unrecognized tax benefits as of June 30, 2022. The amount of unrecognized tax benefits may change in the next twelve months; however we do not expect the change to have a significant impact on our results of operations or our financial position. The Company’s tax returns are subject to periodic audits by the various jurisdictions in which the Company operates. The Company's state of Alaska and federal tax return are both open for examination for the years June 30, 2012 through June 30, 2021. These audits can result in adjustments of taxes due or adjustments of the NOL carryforwards that are available to offset future taxable income. The Company’s policy is to recognize estimated interest and penalties related to potential underpayment on any unrecognized tax benefits as a component of income tax expense in the Consolidated Statement of Operations. The Company does not anticipate that the total unrecognized benefits will significantly change due to the settlement of audits and the expiration of the statute of limitations before June 30, 2022.

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- 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 https://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 https://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 https://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 https://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 https://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 https://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 https://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 https://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 https://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690 + Details
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