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Income Taxes
 12 Months Ended
Dec. 31, 2024
Income Taxes  
Income Taxes

6. Income Taxes :

 

The net deferred income tax assets/liabilities in the December 31, 2024 and 2023 consolidated balance sheets include the following components:

 

(in thousands)

 

2024

 

 

2023

 

Deferred tax assets:

 

 

 

 

 

 

Loss carryovers

 

$12,806

 

 

$12,403

 

Mineral Property

 

 

1,669

 

 

 

1,669

 

Capitalized Exploration Costs

 

 

1,771

 

 

 

841

 

Stock option compensation expense

 

 

292

 

 

 

129

 

Other

 

 

162

 

 

 

175

 

Unrealized loss on short-term investments

 

 

29

 

 

 

100

 

Lease Liability

 

 

12

 

 

 

19

 

Valuation allowance

 

 

(16,722)

 

 

(15,301)

Total deferred tax assets

 

 

19

 

 

 

35

 

Deferred tax liabilities:

 

 

 

 

 

 

 

 

Unrealized gains on marketable equity securities

 

 

-

 

 

 

1

 

Lease Asset

 

 

11

 

 

 

21

 

Basis difference on fixed assets

 

 

8

 

 

 

13

 

Total deferred tax liabilities

 

 

19

 

 

 

35

 

Net deferred tax liabilities

 

$-

 

 

$-

 

The U.S. Federal Statutory Tax Rate for 2024 is 21%.  The reconciliation of the expected income tax expense (benefit) and the actual income tax expense (benefit) is as follows:

 

(in thousands)

 

2024

 

 

2023

 

Expected income tax benefit

 

$(1,127)

 

$(788)

Equity based compensation

 

 

-

 

 

 

(23)

Foreign tax rate differences

 

 

(7)

 

 

(19)

State income tax

 

 

(181)

 

 

(160)

Change in valuation allowance

 

 

1,421

 

 

 

992

 

Prior year return reconciliation

 

 

(104)

 

 

-

 

Permanent differences and other

 

 

(2)

 

 

(2)

Income tax (benefit) expense

 

$-

 

 

$-

 

 

Solitario has U.S. Federal net operating loss (NOL) carryovers of $27,471,000 as of December 31, 2024.  Under the Tax Cuts and Jobs Act (“TCIA”) Federal NOL’s incurred in taxable years beginning in 2018 and later have an indefinite carryforward period, but the use of the NOL carryover is limited to 80% of taxable income in the subsequent year.  Federal NOL carryovers incurred prior to 2018 expire after 20 years.  Solitario has $12,769,000 of Federal NOL carryovers incurred prior to 2018 which begin expiring in 2027.  Solitario has State NOL carryovers in Colorado, Montana, and Alaska of $27,833,000 which begin expiring in 2026.  Solitario has Canadian and Peruvian NOL carryovers of $19,155,000 which begin expiring in 2027.  Solitario has U.S. Federal and State capital loss carryovers of $414,000 which begin expiring in 2026.  NOL carryovers and capital loss carryovers are a benefit to Solitario in the form of future tax savings and such carryovers are recorded as deferred tax assets, subject to a valuation allowance.  Solitario has provided a valuation allowance of 100% of its net deferred tax assets due to the uncertainty of generating future profits that would allow for the realization of such deferred tax assets.