Income Taxes

12 Months Ended

Dec. 31, 2018

Income Tax Disclosure [Abstract]

INCOME TAXES

NOTE 16 – INCOME TAXES

There was no income tax provision (benefit) for the years ended December 31, 2018 and 2017. The components of the Company's net deferred tax assets are as follows:

	2018			2017
Deferred tax asset:
Net operating loss carryforward	$	952,000		$	5,531,000
Property and equipment		37,000			37,000
Exploration costs		85,000			113,000
Stock based compensation		96,000			-
Financing costs		23,000			1,000
Asset retirement obligation		42,000			27,000
Total deferred tax assets		1,235,000			5,709,000
Valuation allowance		(1,235,000	)		(5,709,000	)
Net deferred tax assets	$	-		$	-

Deferred income taxes arise from timing differences resulting from income and expense items reported for financial accounting and tax purposes in different periods. A deferred tax asset valuation allowance is recorded when it is more likely than not that deferred tax assets will not be realized. As management of the Company cannot determine that it is more likely than not that the Company will realize the benefit of the net deferred tax assets, a valuation allowance equal to 100% of the deferred tax assets has been recorded at December 31, 2018 and 2017.

On December 22, 2017, the United States enacted the Tax Cuts and Jobs Act (the "Act") resulting in significant modifications to existing law. The Company did not incur any net income tax benefit or provision for the year ended December 31, 2018 as a result of the changes to tax laws and tax rates under the Act. The Company's net deferred tax asset was reduced by approximately $3.8 million during the year ended December 31, 2018, which consisted primarily of the re-measurement of federal deferred tax assets from 35% to 21%.

A reconciliation between the statutory federal income tax rate and the Company's tax benefit (provision) is as follow:

	December 31, 2018					December 31, 2017
Amount computed using the statutory rate	$	4,482,000		(21	%)	$	(1,387,000	)	(35	%)
Other		(8,000	)	-			-		-
Impact of change in statutory tax rate		-		-			3,805,000		96	%
Change in valuation allowance		(4,474,000	)	21	%		(2,418,000	)	(61	%)
Total income tax provision (benefit)	$	-		-	%	$	-		-	%

At December 31, 2018, the Company had a federal net operating loss carry forward of approximately $4.5 million which expires in 2037.

During the years ended December 31, 2018 and 2017, there were no material uncertain tax positions taken by the Company. It is not anticipated that unrecognized tax benefits would significantly increase or decrease within 12 months of the reporting date. The Company recognizes interest accrued related to unrecognized tax benefits in interest expense and penalties in operating expenses. No such interest or penalties were recognized during the periods presented. The Company had no accruals for interest and penalties at December 31, 2018 and 2017. The Company's federal income tax returns for fiscal years 2014 through 2018 remain open and subject to examination.