9. Income Taxes

The Company adopted ASU 2023-09, Improvements to Income Tax Disclosures, effective January 1, 2025. The adoption did not have a material impact on the Company's financial statements but resulted in expanded income tax disclosures.

The Company did not recognize a tax provision during 2025 and 2024. The company paid the Idaho minimum tax of $30 in 2025 and 2024.

Significant components of net deferred tax assets at December 31, 2025 and 2024 are as follows:

			2025			2024
Deferred tax assets:
	NOL carryforward		2,268,000			1,893,300
	NOL carryforward Idaho		452,000			507,000
	Capital Loss Carryforward		262,000			267,000
	Share-based compensation		364,000			82,000
	Deferred compensation		278,000			283,900
	Investments		3,000			-
	Mineral properties		222,000			166,000
			3,849,000			3,199,200

Deferred tax liabilities:
	Investment in OGT		(140,000	)		(143,000	)

Net deferred tax asset			3,709,000			3,056,200
Less valuation allowance			(3,709,000	)		(3,056,200	)
Net deferred tax asset		$	-		$	-

The Company fully reserved the deferred tax asset as of December 31, 2025 and 2024, as management of the Company cannot determine that it's more likely than not that, the Company will realize the benefits of the deferred tax assets.

At December 31, 2025, the Company has approximately $10.8 million of federal and state net operating loss carry forwards. $7.5 million of the federal net operating losses will expire between 2028 and 2045 and $3.3 million of the losses were incurred after 2017 and can be carried forward indefinitely, although the usage of these net operating losses is limited to 80% of taxable income in future years. The Idaho State net operating loss carryforward expires between 2028-2045.

The income tax benefit for the years ended December 31, 2025 and 2024 differs from the statutory rate as follows:

		2025				2024
(Provision)/benefit at statutory rate		594,300		21.0%		132,500		21.0%
State taxes - Idaho		118,600		4.19%		29,700		4.7%
Meals, entertainment, penalties		(1,500	)	-0.05%
Change in state tax rate		(59,400	)	-2.10%
Miscellaneous permanent differences						(30,050	)	-5.1%
Change in prior year tax estimate		800		0.3%		1,630		0.3%
Change in valuation allowance		(652,800	)	-23.07%		(133,780	)	-20.9%
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 2023 through 2025. 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.