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Income Taxes | 12 Months Ended
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Jun. 30, 2017
Income Tax Disclosure [Abstract] |
Income Taxes | Income Taxes We file a consolidated federal income tax return in the United States and various combined and separate filings in several state and local jurisdictions. There were no unrecognized tax benefits nor any accrued interest or penalties associated with unrecognized tax benefits during the years ended June 30, 2017, 2016 and 2015. We believe that we have appropriate support for the income tax positions taken and to be taken on the Company's tax returns and that the accruals for tax liabilities are adequate for all open years based on our assessment of many factors including past experience and interpretations of tax law applied to the facts of each matter. The Company's tax returns are open to audit under the statute of limitations for the years ending June 30, 2014 through June 30, 2016 for federal tax purposes and for the years ended June 30, 2013 through June 30, 2016 for state tax purposes. The components of our income tax provision are as follows:
| June 30, 2017 |  | June 30, 2016 |  | June 30, 2015
Current: |  |  |  |  |
Federal | $ | 168,152 |  |  | $ | 8,731,290 |  |  | $ | 1,413,296 |
State | 581,593 |  |  | 264,254 |  |  | 608,436 |
Total current income tax provision | 749,745 |  |  | 8,995,544 |  |  | 2,021,732 |
Deferred: |  |  |  |  |
Federal | 3,880,522 |  |  | 541,891 |  |  | 1,282,059 |
State | 210,397 |  |  | 33,344 |  |  | 140,430 |
Total deferred income tax provision | 4,090,919 |  |  | 575,235 |  |  | 1,422,489 |
| $ | 4,840,664 |  |  | $ | 9,570,779 |  |  | $ | 3,444,221 |
The following table presents the reconciliation of our income taxes calculated at the statutory federal tax rate, currently 34%, to the income tax provision in our financial statements. Our effective tax rate for 2017 exceeded the statutory rate primarily as a result of state of Louisiana income taxes, partly offset by depletion in excess of basis. The effective tax rate for 2016 is less than the statutory rate primarily due to the benefit derived from statutory depletion in excess of tax basis and the Company had significant legal settlement and derivative gains that were not taxable in Louisiana. The effective tax rates for 2015 exceeded the statutory rate primarily due to state of Louisiana income taxes.
| June 30, 2017 |  | % of Income Before Income Taxes |  | June 30, 2016 |  | % of Income Before Income Taxes |  | June 30, 2015 |  | % of Income Before Income Taxes
Income tax provision computed at the statutory federal rate | $ | 4,380,892 |  |  | 34.0 | % |  | $ | 11,638,588 |  |  | 34.0 | % |  | $ | 2,868,267 |  |  | 34.0 | %
Reconciling items: |  |  |  |  |  |  |  |  |  |  |
Depletion in excess of basis | (92,196 | ) |  | (0.7 | )% |  | (2,242,620 | ) |  | (6.6 | )% |  | — |  |  | — | %
State income taxes, net of federal tax benefit | 522,713 |  |  | 4.1 | % |  | 196,415 |  |  | 0.6 | % |  | 595,708 |  |  | 7.1 | %
Permanent differences related to stock-based compensation | 27,884 |  |  | 0.2 | % |  | — |  |  | — | % |  | — |  |  | — | %
Other | 1,371 |  |  | — | % |  | (21,604 | ) |  | (0.1 | )% |  | (19,754 | ) |  | (0.2 | )%
Income tax provision | $ | 4,840,664 |  |  | 37.6 | % |  | $ | 9,570,779 |  |  | 27.9 | % |  | $ | 3,444,221 |  |  | 40.9 | %
Deferred income taxes primarily represent the net tax effect of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Deferred tax assets and liabilities are classified as either current or noncurrent on the balance sheet based on the classification of the related asset or liability for financial reporting purposes. Deferred tax assets and liabilities not related to specific assets or liabilities on the financial statements are classified according to the expected reversal date of the temporary difference or the expected utilization date for tax attribute carryforwards.
| Asset (Liability)
| June 30, 2017 |  | June 30, 2016 |  | June 30, 2015
Deferred tax assets: |  |  |  |  |
Non-qualified stock-based compensation | $ | 367,159 |  |  | $ | 553,182 |  |  | $ | 173,647 |
Net operating loss carry-forwards | 852,477 |  |  | 386,808 |  |  | 400,288 |
AMT credit carry-forward | 110,564 |  |  | — |  |  | 701,254 |
Other | 18,581 |  |  | 130,947 |  |  | 91,113 |
Gross deferred tax assets | 1,348,781 |  |  | 1,070,937 |  |  | 1,366,302 |
Valuation allowance | (292,446 | ) |  | (292,446 | ) |  | (292,446 | )
Total deferred tax assets | 1,056,335 |  |  | 778,491 |  |  | 1,073,856 |
Deferred tax liability: |  |  |  |  |
Oil and natural gas properties | (16,882,626 | ) |  | (12,513,863 | ) |  | (12,233,993 | )
Total deferred tax liability | (16,882,626 | ) |  | (12,513,863 | ) |  | (12,233,993 | )
Net deferred tax liability | $ | (15,826,291 | ) |  | $ | (11,735,372 | ) |  | $ | (11,160,137 | )
The above assets and liabilities are present on the balance sheet as follows:
| June 30, 2017 |  | June 30, 2016 |  | June 30, 2015
Current deferred tax asset | $ | — |  |  | $ | 105,321 |  |  | $ | 82,414 |
Non-current deferred tax liability | 15,826,291 |  |  | 11,840,693 |  |  | 11,242,551 |
Net liability | 15,826,291 |  |  | 11,735,372 |  |  | 11,160,137 |
As the result of early adopting ASU No. 2015-17, Balance Sheet Classification of Deferred Taxes, at the beginning of this fiscal year current deferred tax assets have been netted together with noncurrent deferred income tax liabilities on the June 30, 2017 consolidated balance sheet. The prior years presented have not been retrospectively adjusted. As of June 30, 2017, we had a federal tax loss carryforward of approximately $1.2 million that we acquired through the reverse merger in May 2004. The majority of the tax loss carryforwards from the reverse merger expired without being utilized. We will be able to utilize a maximum of $0.3 million of these carryforwards in equal annual amounts of $39,648 through 2023 and the balance is not able to be utilized based on the provisions of IRC Section 382. We have recorded a valuation allowance for the portion of our net operating loss that is limited by IRC Section 382. During this fiscal year we generated a net operating loss of approximately $9.1 million in the State of Louisiana reflecting bonus depreciation tax deductions for our NGL plant, which was placed in service during fiscal 2017. During fiscal 2016 we utilized the remaining amount of $25.3 million of net operating losses ("NOL's") created primarily from tax deductions in excess of book deductions related to the exercise of non-qualified stock options and incentive warrants in fiscal 2014. NOL's related to such stock-based awards had not affected our future tax provision for financial reporting purposes, nor had it been recognized as a deferred tax asset for these future benefits. In fiscal 2016 and 2015, we recognized a tax benefit for utilization of these NOL's to offset cash taxes that would otherwise have been payable as an increase in additional paid in capital, in amounts of $9,650,657 and $1,633,946 respectively. In late September 2015, we received a $1.5 million refund payment of cash taxes paid to the State of Louisiana over a three-year period ended June 30, 2014. We also received $57,467 from the State of Louisiana for interest on the refund and recorded it as a reduction of current income tax expense. This carryback of tax losses resulted from the exercise of stock options and incentive warrants in fiscal 2014 and, accordingly, we recognized this benefit as an increase in additional paid-in capital for financial reporting purposes. This carryback utilized approximately $19.1 million of an estimated $24.2 million net loss for state tax purposes. The remaining balance of this net loss carryforward in Louisiana was utilized in the tax return for the year ended June 30, 2015. In addition, as of June 30, 2017, the Company had an estimated carryforward of percentage depletion in excess of basis of approximately $7.2 million. These future deductions are limited to 65% of taxable income in any period.

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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/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -URI http://asc.fasb.org/topic&trid=2144680 + Details
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