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Income Taxes
 12 Months Ended
Dec. 31, 2012
Income Taxes [Abstract]  
Income Taxes

21. Income Taxes

 

The provision (benefit) for income taxes from continued operations for the years ended December 31, 2012, 2011 and 2010 consist of the following:

 

    2012     2011     2010  
Current:                        
Federal   $ -     $ -     $ -  
                         
Deferred:                        
Federal     -       (76,081 )     -  
                         
Income taxes provision   $ -     $ (76,081 )   $ -  
                         
Federal statutory rate     (34.0 )%     (34.0 )%     (34.0 )%
Change in valuation allowance     33.9       32.9       33.7  
Other     0.1       0.4       0.3  
      - %     (0.7 )%     - %

 

Deferred income taxes at December 31, 2012 and 2011 consisted of the following:

 

    December 31,     December 31,  
    2012     2011  
Asset retirement obligation   $ 609,905     $ 401,922  
Fixed assets     (695,728 )     (121,016 )
Mine exploration and development costs     5,576,631       5,002,105  
Derivatives - change in fair value     (487,274 )     (332,754 )
Stock-based compensation     2,261,053       682,761  
Net operating loss     40,925,397       32,122,539  
Transaction costs     1,362,388       1,312,856  
Other     48,048       64,942  
Valuation allowance     (49,600,420 )     (39,133,355 )
Total net deferred tax assets   $ -     $ -  

 

At December 31, 2012, the Company had federal net operating losses of approximately $120,370,000 which will begin to expire in 2023 and could be subject to certain limitations under section 382 of the Internal Revenue Code.

 

The Company has provided a valuation allowance at December 31, 2012 and 2011 of $49,600,420 and $39,133,355 for its net deferred tax assets as it cannot conclude it is more likely than not that they will be realized. The valuation allowance increased by approximately $10,467,000, $3,897,000 and $20,302,000 in 2012, 2011 and 2010, respectively.

 

As of December 31, 2012 and 2011, the Company did not have any unrecognized tax benefits. The Company's policy is to recognize interest and penalties related to income tax matters in income tax expense. The Company currently has no federal or state tax examinations in progress nor has it had any federal or state tax examinations since its inception. The Company is subject to U.S. federal and state income tax examination for tax years 2009 and forward.