v3.26.1
Income Taxes
 12 Months Ended
Dec. 31, 2025
Income Taxes  
Income Taxes

10. Income Taxes

 

In the year ended December 31, 2025, the Company recognized a provision for income taxes in the amount of $426,100. The Company did not recognize a provision or (benefit) for income taxes for the year ended December 31, 2024, but the minimum Idaho state tax was paid.

 

The components of the 2025 tax provision are as follows:

 

Current

 

Federal

 

$222,250

 

Idaho state

 

 

112,150

 

Total current income tax provision

 

 

334,400

 

 

 

 

 

 

Deferred

Federal

 

 

76,460

 

Idaho state

 

 

15,240

 

Total deferred income tax provision

 

 

91,700

 

 

 

 

 

 

Total income tax provision

 

$426,100

 

 

The significant components of net deferred tax assets at December 31, 2025 and 2024 were as follows:

 

 

 

2025

 

 

2024

 

Deferred tax assets

 

 

 

 

 

 

Net operating loss carry forwards

 

$1,160,300

 

 

$3,661,000

 

Mineral properties

 

 

438,100

 

 

 

201,100

 

Asset retirement obligation

 

 

20,500

 

 

 

16,000

 

Stock based compensation

 

 

679,900

 

 

 

629,000

 

Other

 

 

52,900

 

 

 

26,500

 

Total deferred tax assets

 

 

2,351,700

 

 

 

4,533,600

 

Valuation allowance

 

 

-

 

 

 

(3,176,700)

 

 

 

2,351,700

 

 

 

1,356,900

 

Deferred tax liabilities

 

 

 

 

 

 

 

 

Property, plant, and equipment

 

 

(2,443,400)

 

 

(1,356,900)

Asset retirement obligation

 

 

-

 

 

 

-

 

Total deferred tax liabilities

 

 

(2,443,400)

 

 

(1,356,900)

 

 

 

 

 

 

 

 

 

Net deferred tax assets (liabilities)

 

$(91,700)

 

$-

 

 

At December 31, 2025, the Company had net deferred tax assets principally arising from the net operating loss carryforward for income tax purposes. There is no valuation allowance necessary as the Company has a net deferred tax liability at December 31, 2025.

 

At December 31, 2024, the Company had net deferred tax assets principally arising from the net operating loss carryforward for income tax purposes. As management of the Company could not determine that it was more likely than not that the Company would realize the benefit of the deferred tax assets, a valuation allowance equal to 100% of the net deferred tax asset existed at December 31, 2024.

 

At December 31, 2025, the Company had net operating loss carry forwards of approximately $5,525,295 for federal purposes, none of which will expire, but utilization is limited to 80% of taxable income in any future year. At December 31, 2025, the Company did not have any net operating loss carry forwards for state purposes.

 

The income tax provision (benefit) for the years ended December 31, 2025 and 2024 differ from the statutory rate of 21% as follows: 

 

 

 

2025

 

 

2024

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Provision (benefit) at statutory rate for the period

 

$3,582,000

 

 

 

21.00%

 

$1,838,200

 

 

 

21.00%

Idaho state taxes, net of federal taxes

 

 

714,100

 

 

 

4.19%

 

 

401,000

 

 

 

4.60%

Taxable grant income

 

 

-

 

 

 

-

 

 

 

106,900

 

 

 

1.20%

Change in state tax rate

 

 

(31,100)

 

(0.18%)

 

 

 

-

 

 

 

-

 

Stock-based compensation

 

 

265,500

 

 

 

1.56%

 

 

-

 

 

 

-

 

Non-deductible items

 

 

2,600

 

 

 

0.02%

 

 

3,400

 

 

 

0.04%

Depletion

 

 

(1,311,100)

 

(7.69%)

 

 

 

(958,600)

 

(10.94%)

 

Change in estimates

 

 

380,700

 

 

 

2.23%

 

 

(60,900)

 

(0.70%)

 

Increase (decrease) in valuation allowance

 

 

(3,176,600)

 

(18.62%)

 

 

 

(1,330,000)

 

(15.20%)

 

Total provision (benefit)

 

$426,100

 

 

 

2.50%

 

$-

 

 

 

-

 

 

The Company is open to examination of its income tax filings in the United States and state jurisdictions for the 2023 through 2025 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. During the years ended December 31, 2025 and 2024, there were no material uncertain tax positions taken by the Company.