Income Taxes

12 Months Ended

Dec. 31, 2021

Income Tax Disclosure [Abstract]

Income Taxes [Text Block]

10. Income Taxes

The Company did not recognize a tax provision during 2021 and 2020.

At December 31, 2021 and 2020, 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, 2021 and 2020 are as follows:

		2021			2020
Deferred tax assets:
Net operating loss carryforwards	$	2,130,700		$	1,547,400
Share-based compensation		83,700			133,400
Deferred compensation		278,000			278,000
Mineral properties		170,600			179,300
		2,663,000			2,138,100
Deferred tax liabilities:
Investment in OGT		(147,500	)		(147,100	)
Investments		(3,600	)		(302,900	)
Net deferred tax assets		2,511,900			1,688,100
Less valuation allowance		(2,511,900	)		(1,688,100	)
Net deferred tax assets	$	-		$	-

The Company fully reserved the deferred tax asset as of December 31, 2021 and 2020, as management of the Company cannot determine that is more likely than not that, the Company will realize the benefit of the deferred tax assets.
 

At December 31, 2021, the Company had approximately $ 8.0 million of federal and state net operating loss carryforwards. $7.5 million of net operating loss will expire between 2030 and 2037.  $0.5 million of the losses were incurred after 2017 and can be carried forward indefinitely, although usage of these net operating losses is limited to 80% of taxable income in the future tax year.   

The income tax benefit shown in the financial statements for the years ended December 31, 2021 and 2020 differs from the federal statutory rate as follows:

		2021					2020
(Provision) benefit at statutory rates		119,000		21.0%		$	(256,600	)	(21.0%)
State taxes		32,300		5.7			(69,600	)	(5.7	)
Permanent differences		-		0.0			(12,600	)	1.0
Change in prior year tax estimates		672,500		118.6			104,100		8.5
Change in valuation allowance		(823,800	)	(145.3	)		234,700		(19.2	)
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 2018 through 2021.  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.