Idaho Strategic Resources, Inc. Income Taxes Disclosure
10. Income Taxes
In the year ended December 31, 2025, the Company recognized a provision for income taxes in the amount of $426,100. The Company did not recognize a provision or (benefit) for income taxes for the year ended December 31, 2024, but the minimum Idaho state tax was paid.
The components of the 2025 tax provision are as follows:
Current |
| |||
Federal |
| $ | 222,250 |
|
Idaho state |
|
| 112,150 |
|
Total current income tax provision |
|
| 334,400 |
|
|
|
|
|
|
Deferred | ||||
Federal |
|
| 76,460 |
|
Idaho state |
|
| 15,240 |
|
Total deferred income tax provision |
|
| 91,700 |
|
|
|
|
|
|
Total income tax provision |
| $ | 426,100 |
|
The significant components of net deferred tax assets at December 31, 2025 and 2024 were as follows:
|
| 2025 |
|
| 2024 |
| ||
Deferred tax assets |
|
|
|
|
|
| ||
Net operating loss carry forwards |
| $ | 1,160,300 |
|
| $ | 3,661,000 |
|
Mineral properties |
|
| 438,100 |
|
|
| 201,100 |
|
Asset retirement obligation |
|
| 20,500 |
|
|
| 16,000 |
|
Stock based compensation |
|
| 679,900 |
|
|
| 629,000 |
|
Other |
|
| 52,900 |
|
|
| 26,500 |
|
Total deferred tax assets |
|
| 2,351,700 |
|
|
| 4,533,600 |
|
Valuation allowance |
|
| - |
|
|
| (3,176,700 | ) |
|
|
| 2,351,700 |
|
|
| 1,356,900 |
|
Deferred tax liabilities |
|
|
|
|
|
|
|
|
Property, plant, and equipment |
|
| (2,443,400 | ) |
|
| (1,356,900 | ) |
Asset retirement obligation |
|
| - |
|
|
| - |
|
Total deferred tax liabilities |
|
| (2,443,400 | ) |
|
| (1,356,900 | ) |
|
|
|
|
|
|
|
|
|
Net deferred tax assets (liabilities) |
| $ | (91,700 | ) |
| $ | - |
|
At December 31, 2025, the Company had net deferred tax assets principally arising from the net operating loss carryforward for income tax purposes. There is no valuation allowance necessary as the Company has a net deferred tax liability at December 31, 2025.
At December 31, 2024, the Company had net deferred tax assets principally arising from the net operating loss carryforward for income tax purposes. As management of the Company could not determine that it was more likely than not that the Company would realize the benefit of the deferred tax assets, a valuation allowance equal to 100% of the net deferred tax asset existed at December 31, 2024.
At December 31, 2025, the Company had net operating loss carry forwards of approximately $5,525,295 for federal purposes, none of which will expire, but utilization is limited to 80% of taxable income in any future year. At December 31, 2025, the Company did not have any net operating loss carry forwards for state purposes.
The income tax provision (benefit) for the years ended December 31, 2025 and 2024 differ from the statutory rate of 21% as follows:
|
| 2025 |
|
| 2024 |
| ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Provision (benefit) at statutory rate for the period |
| $ | 3,582,000 |
|
|
| 21.00 | % |
| $ | 1,838,200 |
|
|
| 21.00 | % |
Idaho state taxes, net of federal taxes |
|
| 714,100 |
|
|
| 4.19 | % |
|
| 401,000 |
|
|
| 4.60 | % |
Taxable grant income |
|
| - |
|
|
| - |
|
|
| 106,900 |
|
|
| 1.20 | % |
Change in state tax rate |
|
| (31,100 | ) |
| (0.18%) |
|
|
| - |
|
|
| - |
| |
Stock-based compensation |
|
| 265,500 |
|
|
| 1.56 | % |
|
| - |
|
|
| - |
|
Non-deductible items |
|
| 2,600 |
|
|
| 0.02 | % |
|
| 3,400 |
|
|
| 0.04 | % |
Depletion |
|
| (1,311,100 | ) |
| (7.69%) |
|
|
| (958,600 | ) |
| (10.94%) |
| ||
Change in estimates |
|
| 380,700 |
|
|
| 2.23 | % |
|
| (60,900 | ) |
| (0.70%) |
| |
Increase (decrease) in valuation allowance |
|
| (3,176,600 | ) |
| (18.62%) |
|
|
| (1,330,000 | ) |
| (15.20%) |
| ||
Total provision (benefit) |
| $ | 426,100 |
|
|
| 2.50 | % |
| $ | - |
|
|
| - |
|
The Company is open to examination of its income tax filings in the United States and state jurisdictions for the 2023 through 2025 tax years. Tax attributes from years prior to that can be adjusted as a result of examinations. In the event that the Company is assessed penalties and or interest, penalties will be charged to other operating expense and interest will be charged to interest expense. The Company has reviewed its tax positions and believes it has not taken a position that would not be sustained under examination. During the years ended December 31, 2025 and 2024, there were no material uncertain tax positions taken by the Company.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 23, 2026 | Showing above |
| 2024 | Mar 31, 2025 | |
| 2023 | Mar 25, 2024 | |
| 2022 | Mar 31, 2023 | |
| 2021 | Mar 31, 2022 | |
| 2020 | Mar 31, 2021 | |
| 2019 | Mar 23, 2020 | |
| 2018 | Apr 1, 2019 | |
| 2017 | Feb 26, 2018 | |
| 2016 | Mar 31, 2017 | |
| 2015 | Mar 28, 2016 | |
About Income Taxes Disclosures
The income tax disclosure reveals how much a company actually pays in taxes versus what the statutory rate would predict. Analysts focus on the effective tax rate (ETR) reconciliation, which breaks down every item driving the gap between the 21% federal rate and the company's reported ETR — including R&D credits, foreign rate differentials, and state taxes. Deferred tax assets (DTAs) and their valuation allowances signal management's confidence in future profitability: a rising allowance suggests the company doubts it can use accumulated tax benefits. Uncertain tax benefit (UTB) reserves quantify exposure to IRS challenges on aggressive positions.
Key signals to watch: sudden ETR drops without clear operational reasons, large increases in valuation allowances, growing UTB balances, and significant unremitted foreign earnings. Post-TCJA, pay attention to GILTI and BEAT provisions that affect multinational tax structures. Compare the cash taxes paid (from the cash flow statement) against the income tax provision to gauge earnings quality.