XML 46 R18.htm IDEA: XBRL DOCUMENT v2.4.0.8
FEDERAL INCOME TAXES
 12 Months Ended
Dec. 31, 2012
FEDERAL INCOME TAXES  
FEDERAL INCOME TAXES

11. FEDERAL INCOME TAXES

 

The deferred federal income tax asset (liability) consists of the following:

 

 

 

December 31,

 

 

 

2012

 

2011

 

2010

 

 

 

(Restated)

 

(Restated)

 

(Restated)

 

Property development costs-net of amortization

 

$

12,230,000

 

$

10,444,000

 

$

11,090,000

 

 

 

 

 

 

 

 

 

 

 

 

Accelerated depreciation

 

(294,000

)

(105,000

)

(151,000

)

 

 

 

 

 

 

 

 

Restoration reserves

 

(2,681,000

)

(2,080,000

)

(1,560,000

)

 

 

 

 

 

 

 

 

Net operating loss carry-forwards utilized

 

996,000

 

143,000

 

—

 

 

 

 

 

 

 

 

 

Net operating loss and percentage depletion carry-forwards

 

57,724,000

 

39,496,000

 

34,766,000

 

 

 

 

 

 

 

 

 

Valuation allowance and other-net

 

(67,975,000

)

(47,898,000

)

(44,145,000

)

 

 

 

 

 

 

 

 

Total deferred income tax asset (liability)

 

$

—

 

$

—

 

$

—

 

 

Major items causing the Company’s tax provision to differ from the federal statutory rate of 34% were:

 

 

 

For the Twelve Months Ended December 31,

 

 

 

2012

 

2011

 

2010

 

 

 

Amount

 

% of
Pretax
Income

 

Amount

 

% of
Pretax
Income

 

Amount

 

% of
Pretax
Income

 

 

 

(Restated)

 

 

 

(Restated)

 

 

 

(Restated)

 

 

 

Pretax income (loss)

 

$

(19,360,853

)

 

 

$

(11,065,842

)

 

 

$

(11,803,719

)

 

 

Pretax income (loss) times statutory tax rate

 

(6,582,690

)

34

%

(3,762,386

)

34

%

(4,013,264

)

34

%

Increases (decreases) in taxes resulting from:

 

 

 

 

 

 

 

 

 

 

 

 

 

Change in valuation allowance

 

6,582,690

 

-34

%

3,762,386

 

-34

%

4,013,264

 

-34

%

Income tax benefit

 

$

—

 

0

%

$

—

 

0

%

$

—

 

0

%

 

The Company also has available for regular federal income tax purposes at December 31, 2012 estimated net operating loss (“NOL”) carry-forwards of approximately $167 million, before limitations which expire primarily in 2013 through 2032, if not previously utilized. This includes approximately $29.6 million in NOL’s associated with the Neutron acquisition. Following the issuance of the Company’s Common Stock in 2001 and the Neutron acquisition in 2012, the ability to utilize the NOL’s will be severely limited on an annual and aggregate basis. For this reason, and due to no expectation of profitable operations in the near future, the NOL has a full valuation allowance and is not shown as a deferred tax asset in the table above.

 

The Company’s tax years ended 2006 to 2011 remain open to examination for Federal tax purposes.