v3.22.2.2
Income Taxes
 12 Months Ended
Dec. 31, 2021
Income Taxes  
Income Taxes

10. Income Taxes

 

The Company did not recognize a provision (benefit) for income taxes for the years ended December 31, 2021 and 2020.

 

The significant components of net deferred tax assets at December 31, 2021 and 2020 were as follows:

 

 

 

2021

 

 

2020

 

Deferred tax assets

 

 

 

 

 

 

Net operating loss carry forward

 

$4,796,000

 

 

$3,984,500

 

Mineral properties

 

 

241,300

 

 

 

201,200

 

Asset retirement obligation

 

 

4,600

 

 

 

8,400

 

Stock based compensation

 

 

503,400

 

 

 

219,000

 

Other

 

 

16,800

 

 

 

14,800

 

Total deferred tax assets

 

 

5,562,100

 

 

 

4,427,900

 

Valuation allowance

 

 

(4,017,800)

 

 

(3,286,100)

 

 

 

1,544,300

 

 

 

1,141,800

 

Deferred tax liabilities

 

 

 

 

 

 

 

 

Property, plant, and equipment

 

 

(1,544,300)

 

 

(1,141,800)

Total deferred tax liabilities

 

 

(1,544,300)

 

 

(1,141,800)

 

 

 

 

 

 

 

 

 

Net deferred tax assets

 

$-

 

 

$-

 

 

At December 31, 2021 and 2020, the Company had net deferred tax assets principally arising from the net operating loss carryforward for income tax purposes. As management of the Company cannot determine that it is more likely than not that the Company will realize the benefit of the deferred tax assets, a valuation allowance equal to 100% of the net deferred tax asset exists at December 31, 2021 and 2020.

 

At December 31, 2021 the Company had net operating loss carry forwards of approximately $18,118,000 for both federal and state purposes, $11,100,000 of which expire between 2021 through 2037. The remaining balance of $7,018,000 will never expire but its utilization is limited to 80% of taxable income in any future year.

The income tax provision (benefit) for the years ended December 31, 2021 and 2020 differ from the statutory rate of 21% as follows:

 

 

 

2021

 

 

2020

 

 

 

 

 

 

 

 

Provision (benefit) at statutory rate for the period

 

$(683,600)

 

$(155,400)

State taxes, net of federal taxes

 

 

(178,200)

 

 

(43,300)

Non-taxable item-CARES Act loan forgiven

 

 

-

 

 

 

(96,200)

Change in rate reconciliation

 

 

57,000

 

 

 

-

 

Adjustment of prior year tax estimates

 

 

73,100

 

 

 

(5,800)

Increase (decrease) in valuation allowance

 

 

731,700

 

 

 

300,250

 

Total provision (benefit)

 

$-

 

 

$-

 

 

The Company is open to examination of our income tax filings in the United States and state jurisdictions for the 2019 through 2021 tax years. Tax attributes from years prior to that can be adjusted as a result of examinations. In the event that the Company is assessed penalties and or interest, penalties will be charged to other operating expense and interest will be charged to interest expense. The Company has reviewed its tax positions and believes it has not taken a position that would not be sustained under examination.