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Note 2 - Income Tax Disclosure
12 Months Ended
Sep. 30, 2024
Notes  
Note 2 - Income Tax Disclosure

Note 2 - Income Taxes. At September 30, 2024, the Company had a depletion carryforward of $860,000 and a net operating loss carryforward of $1,883,000, of which $1,586,599 will expire in the years 2029 through 2038. The approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax assets at September 30, 2024, computed in accordance with the Income Tax Topic (Topic 740) of the Codification, is as follows:

 

Deferred Tax Assets

 

2024

 

2023

 Depletion carryforward

$

181,000

$

181,000

 Net operating loss carryforward

 

395,000

 

487,000

 Accrued shareholder salary

 

228,000

 

228,000

 Deletion and amortization

 

2,000

 

2,000

Total Net Deferred Tax Assets

 

806,000

 

898,000

 Less valuation allowance

 

(806,000)

 

(898,000)

Net Deferred Tax Asset

$

     -

$

     -

 

A valuation allowance has been provided because of the uncertainty of future realization. Income tax expense is different from amounts computed by applying the statutory Federal income tax rate for the following reasons:

 

 

2024

2023

Tax expense (benefit) at 21% of net earnings (loss)

$

92,000

(28,000)

Impact of rate change effective January 1, 2018

 

   -

   -

Change in valuation allowance for net deferred tax assets

 

(92,000)

28,000

Income tax expense

$

-

-

 

As of September 30, 2024, the Company has no unrecognized tax benefit as a result of uncertain tax positions. As of September 30, 2024, the Company’s tax years that remain subject to examination are 2021 - 2024 (Federal jurisdiction) and 2020 - 2024 (state jurisdictions).