XML 67 R13.htm IDEA: XBRL DOCUMENT
v2.4.0.8

Income Taxes | 12 Months Ended
--- | ---
Mar. 31, 2014
Income Tax Disclosure [Abstract] |
Income Taxes | 7. Income Taxes The Company files 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, the Company is no longer subject to U.S. federal and state income tax examinations by tax authorities for years prior to 2011. In January 2014, the Company was notified by the Internal Revenue Service that it had been selected at random for a compliance research examination of fiscal year ending March 31, 2012. Significant components of net deferred tax assets (liabilities) at March 31 are as follows:
|  | 2014 |  |  | 2013 |
Deferred tax assets: |  |  |  |  |  |
Percentage depletion carryforwards |  | $ | 1,463,834 |  |  | $ | 1,336,630 |
Deferred stock-based compensation |  |  | 29,475 |  |  |  | 24,003 |
Asset retirement obligation |  |  | 298,089 |  |  |  | 252,158 |
Net operating loss |  |  | 298,736 |  |  |  | 503,659 |
Derivative instruments |  |  | 13,944 |  |  |  |  |
Other |  |  | 9,673 |  |  |  | 3,237 |
|  |  | 2,113,751 |  |  |  | 2,119,687 |
Deferred tax liabilities: |  |  |  |  |  |  |  |
Excess financial accounting bases over tax bases of property and equipment |  |  | (2,972,200 | ) |  |  | (2,972,886 | )
Net deferred tax liabilities |  | $ | (858,449 | ) |  | $ | (853,199 | )
As of March 31, 2014, the Company has a statutory depletion carryforward of approximately $4,700,000, which does not expire. At March 31, 2014, the Company had a net operating loss carryforward for regular income tax reporting purposes of approximately $3,200,000, which will begin expiring in 2029. The Company's ability to use some of its 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. The income tax provision consists of the following for years ended March 31, 2014, 2013 and 2012:
|  | 2014 |  |  | 2013 |  |  | 2012 |
Current income tax expense |  | $ | 6,500 |  |  | $ | - |  |  | $ | - |
Deferred income tax expense (benefit) |  |  | 5,250 |  |  |  | (31,504 | ) |  |  | (27,960 | )
Total income tax provision: |  | $ | 11,750 |  |  | $ | (31,504 | ) |  | $ | (27,960 | )
Effective tax rate |  |  | 4 | % |  |  | (15 | %) |  |  | (9 | %)
The current income tax expense for fiscal year 2014 is the Company's anticipated alternative minimum tax that cannot offset with its alternative minimum tax net operating loss. The tax benefit from the net operating loss carryforward for the year ended March 31, 2014 was approximately $205,000." A reconciliation of the provision for income taxes to income taxes computed using the federal statutory rate for years ended March 31 follows:
|  | 2014 |  |  | 2013 |  |  | 2012 |
Tax expense at federal statutory rate (1) |  | $ | 106,374 |  |  | $ | (70,678 | ) |  | $ | 102,691 |
Statutory depletion carryforward |  |  | (127,204 | ) |  |  | - |  |  |  | (155,734 | )
Effect of graduated rates |  |  | (13,841 | ) |  |  | 3,391 |  |  |  | (16,940 | )
Revision of prior year estimates |  |  | - |  |  |  | - |  |  |  | 4,314 |
Permanent differences |  |  | 46,421 |  |  |  | 35,783 |  |  |  | 30,210 |
Other |  |  | - |  |  |  | - |  |  |  | 7,499 |
Total income tax expense (benefit) |  | $ | 11,750 |  |  | $ | (31,504 | ) |  | $ | (27,960 | )
Effective income tax rate |  |  | 4 | % |  |  | (15 | %) |  |  | (9 | %)
(1) | The federal statutory rate was 34% for fiscal years ending March 31, 2014, 2013 and 2012.
For the years ended March 31, 2014, 2013 and 2012, the Company did not have any uncertain tax positions. A reconciliation of the beginning and ending balances of unrecognized tax benefits is as follows:
|  | 2014 |  |  | 2013 |  |  | 2012 |
Unrecognized tax benefits at beginning of period |  | $ | 677,000 |  |  | $ | 677,000 |  |  | $ | 670,000 |
Additions based on tax positions related to the current year |  |  | 2,000 |  |  |  | - |  |  |  | - |
Changes to tax positions of prior years |  |  | - |  |  |  | - |  |  |  | 7,000 |
Settlements |  |  | - |  |  |  | - |  |  |  | - |
Expirations |  |  | - |  |  |  | - |  |  |  | - |
Unrecognized tax benefits at end of period |  | $ | 679,000 |  |  | $ | 677,000 |  |  | $ | 677,000 |
While the amount of unrecognized tax benefits may change in the next 12 months, the Company does not expect any change to have a significant impact on its results of operations. The recognition of the total amount of the unrecognized tax benefits would have an impact on the effective tax rate. If these unrecognized tax benefits are disallowed, the Company will be required to pay additional taxes.

X
- 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://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=26873400&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 + Details
Name: | us-gaap_IncomeTaxDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration