Annual report pursuant to Section 13 and 15(d)

INCOME TAXES (Tables)

v3.7.0.1
INCOME TAXES (Tables)
12 Months Ended
Mar. 31, 2016
Income Tax Disclosure [Abstract]  
Schedule of provision for income taxes

The Company recorded a benefit for state income taxes of approximately $15,000 and zero for the years ended March 31, 2017 and 2016, respectively, as a result of the losses and change in valuation allowance for each year.

 

    2017     2016  
 Current taxes:                
 Federal   $ (15,000 )   $  
 State            
      (15,000 )      
 Deferred taxes:                
 Federal            
 State            
             
 Total   $ (15,000 )   $  

 

Schedule of reconciliation between actual tax expense and income taxes

The following is a reconciliation between actual tax expense (benefit) and income taxes computed by applying the U.S. federal income tax rate to income from continuing operations before income taxes for the years ended March 31, 2017 and 2016:

 

    2017     2016  
 Computed at expected tax rates (34%)   $ (30,307,001 )   $ (8,652,916 )
 Meals and entertainment     237,099       50,598  
 Return to accrual true-up     (15,000 )     (13,068 )
 NOLs limitation resulting from change in control     15,134,586        
 Change in valuation allowance     14,935,316       8,615,386  
 Total   $ (15,000 )   $  

 

Schedule of deferred tax assets and deferred liabilities

Tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred liabilities are presented below:

 

    At March 31,  
    2017     2016  
Deferred tax assets:                
Net operating tax loss carryforwards   $ 3,912,500     $ 14,638,485  
Gain on sale of oil and gas properties     7,197,260       6,696,052  
Depletion     1,101,236       1,678,175  
Unrealized net loss on available-for-sale securities     123,955       123,954  
Share-based compensation     402,388       387,564  
Total deferred tax assets     12,737,339       23,524,230  
Deferred tax liabilities:                
Intangible drilling costs     25,949,194       (959,124 )
Depreciation     (4,165,651 )     (3,014,952 )
Other     109,102       144,903  
Total deferred tax liabilities     21,892,645       (3,829,173 )
Subtotal     34,629,984       19,695,027  
Less: valuation allowance     (34,629,984 )     (19,695,057 )
Total   $     $