XML 22 R13.htm IDEA: XBRL DOCUMENT v3.23.2
Income Taxes
 3 Months Ended
Jun. 30, 2023
Income Tax Disclosure [Abstract]  
Income Taxes

7. Income Taxes

 

On August 16, 2022, President Biden signed into law the Inflation Reduction Act of 2022 (“IRA 2022”). The IRA 2022, among other tax provisions, imposes a 15% corporate alternative minimum tax on corporations with book financial statement income in excess of $1.0 billion, effective for tax years beginning after December 31, 2022. The IRA 2022 also establishes a 1% excise tax on stock repurchases made by publicly traded U.S. corporations, effective for stock repurchases in excess of an annual limit of $1.0 million after December 31, 2022. The IRA 2022 did not impact the Company’s current year tax provision or the Company’s financial statements.

 

The income tax provision consists of the following for the three months ended June 30, 2023 and 2022:

 

 

   2023   2022 
   Three Months Ended 
   June 30 
   2023   2022 
Current income tax expense:          
Federal  $-   $- 
State   32,818    28,287 
Total current income tax expense   32,818    28,287 
Deferred income tax expense:          
Federal   88,683    - 
State   -    - 
Total deferred income tax expense   88,683    - 
Total income tax expense:  $121,501   $28,287 

 

Federal income tax for the three months ended June 30, 2023 was $88,683. There was no federal income tax expense for the three months ended June 30, 2022 because the Company was in a net deferred tax asset position.

 

 

A reconciliation of the provision for income taxes to income taxes computed using the federal statutory rate for the three months ended June 30 follows:

 

   2023   2022 
Tax expense at federal statutory rate (1)  $116,402   $272,721 
Statutory depletion carryforward   (36,015)   (50,738)
Change in valuation allowance   (3,578)   (226,644)
U. S. tax reform, corporate rate reduction   -    - 
Permanent differences   11,874    4,661 
State income expense   32,818    28,287 
Other   -    - 
Total income tax  $121,501   $28,287 
Effective income tax rate   20.7%   2.1%

 

  (1) The federal statutory rate was 21% for three months ended June 30, 2023 and 2022.