Schedule of Net Deferred Tax Asset |
As
of December 31, 2024 and 2023, the Company’s net deferred tax assets were as follows:
| |
December 31,
2024 | | |
December 31,
2023 | |
Deferred
tax assets | |
| | |
| |
Federal
net operating loss | |
$ | 1,913,959 | | |
$ | 454,225 | |
Transaction
costs | |
| 1,515,401 | | |
| 1,441,904 | |
Other
debt costs | |
| - | | |
| 885,890 | |
Accrued
expenses | |
| 1,202,259 | | |
| - | |
Deferred
compensation | |
| 446,113 | | |
| - | |
Derivative
liability | |
| 228,732 | | |
| - | |
Stock-based
compensation | |
| 648,697 | | |
| 268,405 | |
Other | |
| 45,322 | | |
| 3,611 | |
Total
deferred tax assets | |
| 6,000,483 | | |
| 3,054,035 | |
Deferred
tax liabilities | |
| | | |
| | |
Oil
and natural gas properties | |
| (8,665,914 | ) | |
| (9,097,162 | ) |
Unrealized
gain on derivatives | |
| (27,302 | ) | |
| (120,013 | ) |
Total
deferred tax assets | |
| (8,693,216 | ) | |
| (9,217,175 | ) |
Net
deferred tax liabilities | |
| (2,692,733 | ) | |
| (6,163,140 | ) |
Valuation
allowance for deferred tax assets | |
| - | | |
| - | |
Net
Deferred tax liability, net of allowance | |
$ | (2,692,733 | ) | |
$ | (6,163,140 | ) |
|
Schedule of Income Tax Provision |
The
income tax provision consists of the following:
| |
| | |
For
the period from | |
| |
For
the
Year Ended
December 31, 2024 | | |
November 15,
2023 to December 31, 2023 | |
Current
income tax (benefit) expense | |
| | |
| |
Federal | |
$ | - | | |
$ | (22,007 | ) |
State | |
| - | | |
| - | |
Total
current income tax benefit | |
| - | | |
| (22,007 | ) |
Deferred
tax (benefit) expense: | |
| | | |
| | |
Federal | |
| (2,840,051 | ) | |
| (1,467,862 | ) |
State | |
| (630,356 | ) | |
| (325,795 | ) |
Valuation
allowance | |
| - | | |
| (571,975 | ) |
Total
deferred income tax (benefit) expense | |
| (3,470,407 | ) | |
| (2,365,632 | ) |
Total
income tax (benefit) expense | |
$ | (3,470,407 | ) | |
$ | (2,387,639 | ) |
|
Schedule of Reconciliation of the Federal Income Tax Rate |
A
reconciliation of the federal income tax rate to the Company’s effective tax rate is as follows:
| |
For
the
period from | | |
For
the
period from | |
| |
November 15,
2023 to December 31, 2023 | | |
November 15,
2023 to December 31, 2023 | |
Statutory
federal income tax rate | |
| 21.00 | % | |
| 21.00 | % |
State
Taxes (Net of Federal Benefit) | |
| 5.02 | % | |
| 2.86 | % |
Permanent
Differences | |
| (1.60 | )% | |
| (8.11 | )% |
Exchange
of Class B units for Class A common stock | |
| 3.24 | % | |
| - | % |
Change
in valuation allowance | |
| - | % | |
| 5.02 | % |
Other | |
| (0.01 | )% | |
| 0.19 | % |
Income
tax provision | |
| 27.65 | % | |
| 20. 97 | % |
|