INCOME TAXES (Tables)
|
12 Months Ended |
Dec. 31, 2021 |
|---|
| INCOME TAXES |
|
| Schedule of Components of Income Tax Expense |
For the years ended December 31, 2021, 2020, and 2019, components of our provision for income taxes are as follows:
|
|
|
|
|
|
|
|
|
|
Provision for Income Taxes |
|
2021 |
|
2020 |
|
2019 |
Federal Deferred Tax |
|
$ |
— |
|
$ |
(6,001,176) |
|
$ |
13,787,654 |
State Deferred Tax |
|
|
90,342 |
|
|
— |
|
|
— |
Provision for Income Taxes |
|
$ |
90,342 |
|
$ |
(6,001,176) |
|
$ |
13,787,654 |
|
| Schedule of Effective Income Tax Rate Reconciliation |
The following is a reconciliation of income taxes computed using the U.S. federal statutory rate to the provision for income taxes:
|
|
|
|
|
|
|
|
|
|
Rate Reconciliation |
|
2021 |
|
2020 |
|
2019 |
Pre-tax book income |
|
$ |
3,413,234 |
|
$ |
(259,413,004) |
|
$ |
43,284,205 |
Tax at federal statutory rate |
|
$ |
716,779 |
|
$ |
(54,476,731) |
|
$ |
9,089,683 |
Excess tax benefit from stock option exercises and restricted stock vesting |
|
|
(175,187) |
|
|
(1,109,379) |
|
|
4,055,418 |
Adjust prior estimates to tax return |
|
|
2,938,948 |
|
|
(1,930,994) |
|
|
19 |
States taxes, net of federal benefit |
|
|
430,654 |
|
|
(964,393) |
|
|
160,913 |
Adjustment for change in future effective tax rate (1) |
|
|
— |
|
|
— |
|
|
479,222 |
Valuation allowance |
|
|
(3,827,194) |
|
|
52,161,412 |
|
|
— |
Non-deductible expenses and other |
|
|
6,342 |
|
|
318,909 |
|
|
2,399 |
Provision for Income Taxes |
|
$ |
90,342 |
|
$ |
(6,001,176) |
|
$ |
13,787,654 |
|
| Schedule of Deferred Tax Assets and Liabilities |
The net deferred taxes consisted of the following as of December 31, 2021 and 2020:
|
|
|
|
|
|
|
12/31/2021 |
|
12/31/2020 |
|
|
Total |
|
Total |
Deferred Tax Assets |
|
|
|
|
Net operating loss (NOL) carryforward |
|
60,155,112 |
|
54,185,183 |
Equity compensation |
|
691,076 |
|
3,350,361 |
Asset retirement obligation |
|
3,348,875 |
|
4,604,906 |
Fair market value of derivatives |
|
6,403,745 |
|
888,266 |
Accrued expense |
|
5,049 |
|
— |
Others |
|
56,028 |
|
55,746 |
Gross Deferred Tax Assets |
|
70,659,885 |
|
63,084,462 |
Less: valuation allowance |
|
(48,334,217) |
|
(52,161,412) |
Net Deferred Tax Assets |
|
22,325,668 |
|
10,923,050 |
|
|
|
|
|
Deferred Tax Liabilities |
|
|
|
|
Propety and equipment |
|
(22,415,959) |
|
(10,923,050) |
Net Deferred Liabilties |
|
(22,415,959) |
|
(10,923,050) |
|
|
|
|
|
Net Deferred Tax Asset/(Liabilities) |
|
(90,292) |
|
— |
|