Schedule of Effective Income Tax Rate Reconciliation |
The
provision for income taxes differs from the amount computed by applying the federal statutory income tax rate (35%) on operations
due primarily to permanent differences attributable to organizational expenses.
|
|
Fiscal
Year Ended December 31, 2017 |
|
|
Fiscal
Year Ended December 31, 2016 |
|
|
|
|
|
|
|
|
Income
tax expense computed at statutory rates |
|
$ |
(1,141,449 |
) |
|
$ |
(656,523 |
) |
Non-deductible items |
|
|
536,470 |
|
|
|
219,438 |
|
Change
in valuation allowance |
|
|
604,979 |
|
|
|
437,085 |
|
|
|
|
|
|
|
|
|
|
Total |
|
$ |
— |
|
|
$ |
— |
|
|
Schedule of Deferred Tax Assets and Liabilities |
The
components of the net deferred tax asset were as follows:
|
|
December
31, 2016
|
|
|
|
Gross
Values |
|
|
Tax
Effect |
|
Deferred
tax assets
|
|
|
|
|
|
$ |
|
|
Book
Impairment |
|
$ |
668,073 |
|
|
$ |
233,825 |
|
Net
operating loss carryforwards |
|
|
7,120,879 |
|
|
|
2,492,308 |
|
Asset
retirement obligation |
|
|
— |
|
|
|
— |
|
Other |
|
|
— |
|
|
|
— |
|
Total
deferred tax assets |
|
|
7,788,952 |
|
|
|
2,726,133 |
|
|
|
|
|
|
|
|
|
|
Deferred
tax liabilities |
|
|
|
|
|
|
|
|
O&G
Properties |
|
|
(6,496,717 |
) |
|
|
(2,273,851 |
) |
Other |
|
|
— |
|
|
|
— |
|
Total
deferred tax liabilities |
|
|
(6,496,717 |
) |
|
|
(2,273,851 |
) |
Less:
Valuation allowance |
|
|
(1,292,235 |
) |
|
|
(452,282 |
) |
Net
deferred tax assets (liabilities) |
|
$ |
— |
|
|
$ |
— |
|
|
|
December
31, 2017 |
|
|
|
Gross
Values |
|
|
Tax
Effect |
|
Deferred
tax assets |
|
|
|
|
|
$ |
|
|
Book
Impairment |
|
$ |
668,073 |
|
|
$ |
140,295 |
|
Net
operating loss carryforwards |
|
|
8,924,934 |
|
|
|
1,874,236 |
|
Asset
retirement obligation |
|
|
— |
|
|
|
— |
|
Other |
|
|
— |
|
|
|
— |
|
Total
deferred tax assets |
|
|
9,593,007 |
|
|
|
2,014,531 |
|
|
|
|
|
|
|
|
|
|
Deferred
tax liabilities |
|
|
|
|
|
|
|
|
O&G
Properties |
|
|
(1,556,593 |
) |
|
|
(326,884 |
) |
Other |
|
|
— |
|
|
|
— |
|
Total
deferred tax liabilities |
|
|
(1,556,593 |
) |
|
|
(326,884 |
) |
Less:
Valuation allowance |
|
|
(8,036,415 |
) |
|
|
(1,687,647 |
) |
Net
deferred tax assets (liabilities) |
|
$ |
— |
|
|
$ |
— |
|
|