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INCOME TAXES
 12 Months Ended
Dec. 31, 2024
Major components of tax expense (income) [abstract]  
INCOME TAXES

11. INCOME TAXES

 

The Company’s income tax (benefit) provision consisted of the following components (in thousands):

 

   2024    2023 
Current          
Federal   -    - 
State  $374    - 
Current   374    - 
Deferred          
Federal   5,597    1,967 
State   (107)   1,392 
Deferred   5,490    3,359 
           
Total   5,864    3,359 

 

The provision for income taxes reported differs from the amounts computed by applying the cumulative US federal and state income tax rates to the net loss before tax provision due to the following:

 

   2024   2023 
         
Net income  $23,979   $22,639 
Statutory tax rate   25.91%   26.43%
Net income After Tax   6,213    5,983 
Add (deduct):          
Return to provision   (1)   (122)
Depletion   (293)   (352)
Prior period state deferred adjustments   429    1,051 
Change in unrecognized tax benefit   140    (3,229)
Change in enacted tax rate   (711)   - 
Other   87    28 
Income tax expense  $5,864   $3,359 

 

 

Deferred tax liabilities and assets are attributable to the following:

 

   2024   2023 
Deferred income tax liabilities:          
Property, plant and equipment  $(39,172)  $(37,118)
Commodity contracts   (189)   (103)
Leases   -    (18)
           
Deferred tax assets:          
Stock based compensation   835    377 
Asset retirement obligations   461    425 
Other   15    - 
Loss carry-forward   29,349    33,078 
Deferred tax assets and liabilities  $(8,701)  $(3,359)

 

Unrecognized deferred tax assets

 

Deferred tax assets have not been recognized for the following deductible temporary differences:

 

   2024   2023 
         
Property, plant and equipment  $407   $441 
Loss carry-forward   20,946    22,014 
Capital losses   10,141    10,976 
Unrecognized deferred tax assets  $31,494   $33,431 

 

Deferred tax assets have not been recognized in respect of these items because it is not probable that future taxable profits will be available against which they can be utilized.

 

The Company has net operating losses carried forward which may be available to offset future income for income tax purposes expiring over the periods 2028 to 2039. The Company has net operating losses of approximately $112 million in the US, $139 million in US States and $21 million in Canada. The Canada net operating losses are unrecognized.

 

The Company has temporary differences associated with its investments in its foreign subsidiaries. The Company has no deferred tax liabilities in respect of these temporary differences.