XML 24 R12.htm IDEA: XBRL DOCUMENT
v3.10.0.1

Income Taxes | 6 Months Ended
--- | ---
Jun. 30, 2018
Income Tax Disclosure [Abstract] |
Income Taxes | NOTE F - INCOME TAXES During the six-month period ended June 30, 2018, we generated a federal net operating loss (“NOL”) carryforward of $1.1 million and generated $3.7 million of foreign NOL carryforwards. As of June 30, 2018, we had consolidated income tax NOL carryforwards for federal tax purposes of approximately $162.6 million and net operating loss carryforwards for foreign income tax purposes of approximately $35.4 million. The federal NOL carryforwards from 2005 forward will expire in various years beginning in 2025 and ending through the year 2037. Deferred income tax assets and liabilities are recognized for the estimated future tax consequences attributable to differences between financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred income tax assets and liabilities are measured using enacted tax rates expected to be recovered or settled. We have recorded a net deferred tax asset of $0 at June 30, 2018. As required by the Accounting for Income Taxes topic in the ASC, we have concluded it is more likely than not that those assets would not be realizable without the recovery and rights of ownership or salvage rights of high value shipwrecks or substantial profits from our mining operations and thus a valuation allowance has been recorded as of June 30, 2018. There was no U.S. income tax expense for the three months ended June 30, 2018 due to the generation of net operating losses. The increase in the valuation allowance as of June 30, 2018 is due to the generation of approximately $2.4 million in net operating loss year-to-date. The change in the valuation allowance is as follows:
June 30, 2018 |  | $ | 49,888,798 |
December 31, 2017 |  |  | 49,235,133 |
Change in valuation allowance |  | $ | 653,665 |
Our estimated annual effective tax rate as of June 30, 2018 is 27.39% while our June 30, 2018 effective tax rate is 0.0% because of the full valuation allowance. We have reflected the income tax effects of the Tax Cuts and Jobs Act of 2017 (“Tax Reform”) in accordance with SAB 118 and have made reasonable estimates related to certain impacts of Tax Reform. As a result, the Company will be subject to a 21.0% U.S. federal tax rate for future years. Even with the federal tax rate being reduced, we do not expect any material changes in income tax expense due to the amount of NOL carryforwards. We have not recognized a material adjustment in the liability for unrecognized tax benefits and have not recorded any provisions for accrued interest and penalties related to uncertain tax positions. The earliest tax year still subject to examination by a major taxing jurisdiction is 2014.

X
- References No definition available. + Details
Name: | us-gaap_IncomeTaxDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- 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://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -URI http://asc.fasb.org/topic&trid=2144680 + Details
Name: | us-gaap_IncomeTaxDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration