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Income Taxes | 12 Months Ended
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Mar. 31, 2013
Income Tax Disclosure [Abstract] |
Income Taxes | 7. Income Taxes Mexco and its subsidiaries file a consolidated federal income tax return and various state income tax returns. The amount of income taxes we record requires the interpretation of complex rules and regulations of federal and state taxing jurisdictions. With few exceptions, Mexco is no longer subject to U.S. federal and state income tax examinations by tax authorities for years prior to 2010. Significant components of net deferred tax assets (liabilities) at March 31 are as follows:
|  | 2013 |  | 2012 |  | 2011
Deferred tax assets: |  |  |  |  |
| Percentage depletion carryforwards | $1,336,630 |  | $1,336,630 |  | $1,180,896
| Deferred stock-based compensation | 24,003 |  | 13,844 |  | 2,872
| Asset retirement obligation | 252,158 |  | 205,616 |  | 179,462
| Net operating loss | 503,659 |  | 171,411 |  | 125,848
| Other | 3,237 |  | 3,695 |  | 6,200
| 2,119,687 |  | 1,731,196 |  | 1,495,278
Deferred tax liabilities: |  |  |  |  |
| Excess financial accounting bases over tax bases of property and equipment | (2,972,886) |  | (2,615,899) |  | (2,407,941)
| Net deferred tax liabilities | $ (853,199) |  | $ (884,703) |  | $ (912,663)
As of March 31, 2013, we have a statutory depletion carryforward of approximately $4,300,000, which does not expire. At March 31, 2013, we had a net operating loss carryforward for regular income tax reporting purposes of approximately $3,800,000, which will begin expiring in 2021. Our ability to use some of our net operating loss carryforwards and certain other tax attributes to reduce current and future U.S. federal taxable income is subject to limitations under the Internal Revenue Code. For the year ended March 31, 2013, there was a deferred income tax benefit of $31,504. There was no current income tax for the year ended March 31, 2013. For the year ended March 31, 2012, there was a deferred income tax benefit of $27,960. There was no current income tax for the year ended March 31, 2012. For the year ended March 31, 2011, there was a current income tax benefit of $25,502 and a deferred income tax expense of $9,906. A reconciliation of the provision for income taxes to income taxes computed using the federal statutory rate for years ended March 31 follows:
|  | 2013 |  | 2012 |  | 2011
Tax expense at federal statutory rate (1) | $ (70,678) |  | $ 102,691 |  | $ 47,634
Statutory depletion carryforward | -- |  | (155,734) |  | (86,221)
Effect of graduated rates | 3,391 |  | (16,940) |  | (3,074)
Revision of prior year estimates | -- |  | 4,314 |  | 44,503
Permanent differences | 35,783 |  | 30,210 |  | (17,309)
Other | -- |  | 7,499 |  | (1,129)
| Total income tax benefit | $ (31,504) |  | $ (27,960) |  | $ (15,596)
| Effective income tax rate | (15%) |  | (9%) |  | (11%)
(1) The federal statutory rate was 34% for fiscal years ending March 31, 2013, 2012 and 2011. For the years ended March 31, 2013, 2012 and 2011, we did not have any uncertain tax positions. For the years ended March 31, 2013, 2012 and 2011, the amount of unrecognized tax benefits was approximately $677,000, $677,000 and $670,000, respectively. While it is expected the amount of unrecognized tax benefits will change in the next 12 months, we do not expect any change to have a significant impact on our results of operations. The recognition of the total amount of the unrecognized tax benefits of $677,000 would have an impact on the effective tax rate. If these unrecognized tax benefits are disallowed, we will be required to pay additional taxes. A reconciliation of the beginning and ending balances of unrecognized tax benefits is as follows:
| 2013 |  | 2012 |  | 2011
Unrecognized tax benefits at beginning of period | $ 677,000 |  | $ 670,000 |  | $ 524,000
Additions based on tax positions related to the current year | - |  | - |  | 146,000
Changes to tax positions of prior years | - |  | 7,000 |  | -
Settlements | - |  | - |  | -
Expirations | - |  | - |  | -
Unrecognized tax benefits at end of period | $ 677,000 |  | $ 677,000 |  | $ 670,000

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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 -SubTopic 10 -Section 50 -Paragraph 15 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32718-109319 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08.(h)) -URI http://asc.fasb.org/extlink&oid=6881521&loc=d3e23780-122690 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 08 -Paragraph h -Article 4 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 9 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32639-109319 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32537-109319 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32559-109319 Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 109 -Paragraph 136, 172 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 8: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 109 -Paragraph 43, 44, 45, 46, 47, 48, 49 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. + Details
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