9. Income Tax (Tables)

12 Months Ended

Mar. 31, 2014

Income Tax Tables

Provision for income tax

	Year Ended March 31,
	2014			2013
Current:
Federal	$	(387,000	)	$	40,000
State		(3,000	)		22,000
Total current income tax (benefit) expense		(390,000	)		62,000
Deferred:
Federal		1,439,000			226,000
State		76,000			14,000
Total deferred income tax expense		1,515,000			240,000
Income tax expense	$	1,125,000		$	302,000

Reconciliation between the income tax provision at the statutory rate on income tax and the income tax provision

	Year Ended March 31,
	2014			2013
Federal tax at statutory rate	$	1,722,000		$	708,000
State taxes, net of federal benefit		55,000			18,000
Excess percentage depletion		(678,000	)		(415,000	)
Changes in state rates and other adjustments to deferred taxes		26,000			(9,000	)
Income tax expense	$	1,125,000		$	302,000
Effective rate expressed as a percentage of income before income tax		22.2	%		14.5	%

Net deferred tax assets and liabilities

Net deferred tax assets and liabilities were comprised of:	Year Ended March 31,
	2014			2013
Deferred tax assets:
Statutory depletion carry-forward	$	2,190,000		$	1,467,000
Other accruals		103,000			131,000
Allowance for doubtful accounts		5,000			14,000
Gross deferred tax assets		2,298,000			1,612,000
Deferred tax liabilities:
Depreciation, depletion and intangible drilling costs		(6,784,000	)		(4,583,000	)
Gross deferred tax liabilities		(6,784,000	)		(4,583,000	)
Net deferred tax liabilities	$	(4,486,000	)	$	(2,971,000	)