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Income Taxes | 12 Months Ended
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Dec. 31, 2017
Income Tax Disclosure [Abstract] |
Income Taxes |
12. | INCOME TAXES
The Company incurred a net loss for each of the years ended December 31, 2017, 2016 and 2015, and the Company has recorded valuation allowances for its net deferred tax assets for each of those years. Accordingly, the Company has not recognized a benefit for income taxes in the accompanying financial statements. Income tax benefit using the Company’s effective income tax rate differs from the U.S. Federal Statutory income tax rate due to the following:
|  | 2017 |  |  | 2016 |  |  | 2015 |
Income tax benefit at federal statutory rate |  | $ | 472 |  |  | $ | 4,801 |  |  | $ | 31,585 |
State income tax benefit, net of federal impact |  |  | 38 |  |  |  | 292 |  |  |  | 1,440 |
Change in Federal tax rate, net of state benefit (1) |  |  | (5,440 | ) |  |  |  |  |  |  |  |
Loss on debt to equity conversion |  |  | (1,630 | ) |  |  |  |  |  |  |  |
Effect of Sec. 382 Limitation |  |  | (29,803 | ) |  |  |  |  |  |  |  |
Incentive stock options and restricted stock not deductible for tax purposes |  |  | 964 |  |  |  | - |  |  |  | (269 | )
Percentage depletion carryover |  |  | 138 |  |  |  | 19 |  |  |  | - |
Prior year true up |  |  | 1,076 |  |  |  | 534 |  |  |  | 171 |
Other |  |  | 77 |  |  |  |  |  |  |  |  |
Decrease in valuation allowance |  |  | (34,109 | ) |  |  | (5,646 | ) |  |  | (32,927 | )
Income tax benefit (expense) |  | $ | - |  |  | $ | - |  |  | $ | - |
| (1) | The change in the Federal Tax rate was due to the passage of Public Law 115-97 (Tax Cuts and Jobs Act). This resulted in a provisional reduction of the Company’s deferred tax assets before valuation analysis primarily due to a reduction in the US Statutory rate from 35% to 21%. We will continue to analyze the Tax Cuts and Jobs Act and future associated Treasury Regulations. This future analysis could potentially affect the measurement of deferred tax balances and give rise to new deferred tax amounts.
The components of deferred tax assets and liabilities as of December 31, 2017 and 2016 are as follows:
|  | 2017 |  |  | 2016 |
Deferred tax assets: |  |  |  |  |  |  |  |
Net operating loss carryover (2) |  | $ | 874 |  |  | $ | 26,739 |
Property and equipment |  |  | 7,123 |  |  |  | 14,575 |
Percentage depletion and contribution carryovers (2) |  |  | 1,872 |  |  |  | 2,512 |
Alternative minimum tax credit carryover (2) |  |  | 785 |  |  |  | 706 |
Equity method investment and other |  |  | 398 |  |  |  | 547 |
Deferred compensation liability |  |  | 8 |  |  |  | 12 |
Asset retirement obligations |  |  | 221 |  |  |  | 377 |
Stock-based compensation |  |  | 83 |  |  |  | (44 | )
Total deferred tax assets |  |  | 11,364 |  |  |  | 45,424 |
Deferred tax liabilities: |  |  |  |  |  |  |  |
Property and equipment |  |  | - |  |  |  | - |
Oil price risk derivatives |  |  | - |  |  |  | - |
Other |  |  | (3 | ) |  |  | (4 | )
Total deferred tax liabilities |  |  | (3 | ) |  |  | (4 | )
Net deferred tax assets |  |  | 11,361 |  |  |  | 45,420 |
Less valuation allowance |  |  | (11,361 | ) |  |  | (45,420 | )
Net deferred tax asset |  | $ | - |  |  | $ | - |
| (2) | On December 27, 2017, the Company paid down debt with common stock. This represented a 49.3% ownership change in the company. This combined with other equity events triggered Net Operation Loss limitations under I.R.C Section 382. As a result, the Company’s Net Operating Loss carryforwards were significantly limited.
The Company has net operating loss carryovers (after limitations) as of December 31, 2017 of approximately $3,600,000 for federal income tax purposes. The net operating loss carryovers may be carried back two years and forward twenty years from the year the net operating loss was generated. The net operating losses may be used to offset future taxable income and expire in varying amounts through 2036. In addition, the Company has alternative minimum tax credit carry-forwards of approximately $785,000 (subject to limitations) which are available to offset future federal income taxes over an indefinite period. The statute of limitations is closed for the tax years through 2011. The Company recognizes, measures, and discloses uncertain tax positions whereby tax positions must meet a “more-likely-than-not” threshold to be recognized. During the years ended December 31, 2017, 2016 and 2015, no adjustments were recognized for uncertain tax positions.

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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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