10. Income Taxes

12 Months Ended

Dec. 31, 2019

Notes

10. Income Taxes

10. Income Taxes  

The Company did not recognize a tax provision for the year ended December 31, 2019 due to the availability of net operating loss carryforwards.  The Company did not recognize a tax benefit for the year ended December 31, 2018 due to ongoing net losses.  

At December 31, 2019 and 2018, net deferred tax assets were calculated based on expected blended future tax rates of 26.7% including both federal and Idaho state components.  Significant components of net deferred tax assets at December 31, 2019 and 2018 are as follows:  

	2019	2018
Deferred tax assets:
Net operating loss carryforwards	$1,448,900	$1,935,200
Share-based compensation	90,800	59,500
Deferred compensation	278,000	278,000
Investments	39,500	-
Mineral properties	212,400	89,700
	2,069,600	2,362,400
Deferred tax liabilities:
Investment in OGT	(146,800)	(146,500)
Net deferred tax assets	1,922,800	2,215,900
Less valuation allowance	(1,922,800)	(2,215,900)
Net deferred tax asset	$-	$-

At December 31, 2019 and 2018, the Company had net deferred tax assets which were fully reserved by valuation allowances as management cannot determine that it is more likely than not that the Company will realize the benefits of the net deferred tax asset.   

The income tax benefit shown in the financial statements for the years ended December 31, 2019 and 2018 differs from the federal statutory rate as follows:

	2019		2018
(Provision) benefit at statutory rates	$(228,300)	(21.0)%	$132,900	21.0%
State taxes	(61,800)	(5.7)%	7,500	1.2%
Miscellaneous permanent differences	600	(0.1)%	500	0.1%
Change in prior year tax estimates	(2,400)	(0.2)%	26,400	4.1%
Change in valuation allowance	293,100	27.0%	(167,300)	(26.4)%
Total	$-	-%	$-	-%

The Company has analyzed its filing positions in all jurisdictions where it is required to file income tax returns and found no positions that would require a liability for uncertain income tax benefits to be recognized.  The Company is subject to possible tax examinations for the years 2017 through 2019.  Prior year tax attributes could be adjusted by taxing authorities.  If applicable, the Company will deduct interest and penalties as interest expense on the financial statements.