6. Income Tax (Tables)

3 Months Ended

Jun. 30, 2014

Income Tax Tables

Provision for income tax

The provision for income tax is comprised of:

	Three Months Ended June 30,
	2014		2013
	(Unaudited)		(Unaudited)
Current:
Federal	$	2,000	$	20,000
State		4,000		7,000
Total current income tax		6,000		27,000
Deferred:
Federal		200,000		133,000
State		11,000		8,000
Total deferred income tax		211,000		141,000
Income tax expense	$	217,000	$	168,000

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

A reconciliation between the income tax provision at the statutory rate on income tax and the income tax provision for the three months ended is as follows:

		Three Months Ended June 30,
	2014			2013
	(Unaudited)			(Unaudited)
Federal tax at statutory rate	$	413,000		$	292,000
State taxes, net of federal benefit		12,000			9,000
Excess percentage depletion		(203,000	)		(135,000	)
Other adjustments, net		(5,000	)		2,000
Income tax expense	$	217,000		$	168,000
Effective rate expressed as a percentage of income before income tax		17.9	%		19.5	%

Net deferred tax assets and liabilities

Net deferred tax assets and liabilities were comprised of:

	June 30,			March 31,
	2014			2014
	(Unaudited)
Deferred tax assets:
Statutory depletion carry-forward	$	2,406,000		$	2,190,000
Net operating loss carry-forward		14,000			-
Other accruals		67,000			103,000
Allowance for doubtful accounts		5,000			5,000
Gross deferred tax assets		2,492,000			2,298,000
Deferred tax liabilities:
Depletion, depreciation and intangible drilling costs		(7,187,000	)		(6,784,000	)
Gross deferred tax liabilities		(7,187,000	)		(6,784,000	)
Deferred tax liabilities, net	$	(4,695,000	)	$	(4,486,000	)