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  (As Restated)     
Federal net operating loss  $1,262,629   $1,913,959 
Transaction costs   1,408,371    1,515,401 
Accrued expenses   842,969    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   5,756,844    6,000,483 
Deferred tax liabilities          
Oil and natural gas properties   (9,288,685)   (8,665,914)
Prepaid expenses   (37,740)   
-
 
Equipment credit   (1,244,559)   
-
 
Unrealized gain on derivatives   (16,252)   (27,302)
Total deferred tax liabilities   (10,587,236)   (8,693,216)
Net deferred tax liabilities   (4,830,392)   (2,692,733)
Valuation allowance for deferred tax assets   
-
    
-
 
Net Deferred tax liability, net of allowance  $(4,830,392)  $(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  (As Restated)     
Federal  $532,692   $
-
 
State   151,203    
-
 
Total current income tax expense   683,895    
-
 
Deferred tax (benefit) expense:          
Federal   1,749,586    (2,840,051)
State   388,073    (630,356)
Valuation allowance   
-
    
-
 
Total deferred income tax (benefit) expense   2,137,659    (3,470,407)
Total income tax (benefit) expense  $2,821,554   $(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
(As Restated)		   For the Year Ended
December 31,
2024		 
Expected income tax expense (benefit) computed at the statutory rate  $(981,343)   21.00%  $(2,792,305)   21.00%
State Taxes (Net of Federal Benefit)   507,805    (10.87)%   (667,494)   5.02%
Nontaxable or Nondeductible Items                    
Gain on forgiveness of debt – equity related party   1,133,061    (24.25)%   
-
    
-
 
Change in fair value of derivative liability, related party   (71,610)   1.53%   
-
    
-
 
Change in fair value of derivative liability   434,758    (9.30)%   
-
    
-
 
Loss on extinguishment of debt   337,247    (7.22)%   
-
    
-
 
Other   60,344    (1.29)%   420,205    (3.16)%
Exchange of Class B units for Class A common stock   1,401,292    (29.99)%   (430,813)   3.24%
Income tax provision (benefit)   2,821,554    (60.38)%   (3,470,407)   26.10%