v3.26.3
Income Taxes (Tables)
12 Months Ended
Dec. 31, 2025
Income Taxes [Abstract]  
Schedule of Net Deferred Tax Asset

As of December 31, 2025 and 2024, the Company’s net deferred tax assets were as follows:

 

   December 31,
2025
   December 31,
2024
 
Deferred tax assets        
Federal net operating loss  $1,402,259   $1,913,959 
Transaction costs   1,408,371    1,515,401 
Accrued expenses   670,754    1,202,259 
Deferred compensation   1,350,406    446,113 
Derivative liability   
-
    228,732 
Stock-based compensation   818,497    648,697 
Other   73,972    45,322 
Total deferred tax assets   5,724,259    6,000,483 
Deferred tax liabilities          
Oil and natural gas properties   (8,385,100)   (8,665,914)
Prepaid expenses   (37,740)   
-
 
Equipment credit   (1,244,559)   
-
 
Unrealized gain on derivatives   (16,252)   (27,302)
Total deferred tax liabilities   (9,683,651)   (8,693,216)
Net deferred tax liabilities   (3,959,392)   (2,692,733)
Valuation allowance for deferred tax assets   
-
    
-
 
Net Deferred tax liability, net of allowance  $(3,959,392)  $(2,692,733)
Schedule of Income Tax Provision

The income tax provision consists of the following:

 

   For the
Year Ended
December 31,
2025
   For the
Year Ended
December 31,
2024
 
Current income tax (benefit) expense        
Federal  $503,692   $
-
 
State   143,203    
-
 
Total current income tax expense   646,895    
-
 
Deferred tax (benefit) expense:          
Federal   1,036,586    (2,840,051)
State   230,073    (630,356)
Valuation allowance   
-
    
-
 
Total deferred income tax (benefit) expense   1,266,659    (3,470,407)
Total income tax (benefit) expense  $1,913,554   $(3,470,407)
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 Year Ended
December 31,
2025
   For the Year Ended
December 31,
2024
 
Expected income tax expense (benefit) computed at the statutory rate  $(1,724,743)   21.00%  $(2,792,305)   21.00%
State Taxes (Net of Federal Benefit)   343,205    (4.18)%   (667,494)   5.02%
Nontaxable or Nondeductible Items                    
Gain on forgiveness of debt – equity related party   1,133,061    (13.80)%   
-
    
-
 
Change in fair value of derivative liability, related party   (71,610)   0.87%   
-
    
-
 
Change in fair value of derivative liability   434,758    (5.29)%   
-
    
-
 
Loss on extinguishment of debt   337,247    (4.11)%   
-
    
-
 
Other   60,344    (0.73)%   420,205    (3.16)%
Exchange of Class B units for Class A common stock   1,401,292    (17.06)%   (430,813)   3.24%
Income tax provision (benefit)   1,913,554    (23.30)%   (3,470,407)   26.10%