Income Taxes

12 Months Ended

Dec. 31, 2021

Income Tax Disclosure [Abstract]

Income Taxes

18. Income Taxes

The Company has net operating losses carried forward of $23,415,133 available to offset taxable income in future years which expire beginning in fiscal 2025.

The Company is subject to United States federal and state income taxes at a rate of 21% in 2021 (2020 - 21%). The reconciliation of the provision for income taxes at the United States federal statutory rate compared to the Company’s income tax expense as reported is as follows:

	2021			2020
Benefit at statutory rate	$	(430,616	)	$	(741,990	)
Permanent differences and other		(70,637	)		(86,216	)
Valuation allowance change		501,252			828,206
Income tax provision	$	–		$	–

The significant components of deferred income tax assets and liabilities as of December 31, 2021 and 2020 are as follows:

	2021			2020
Net operating losses carried forward	$	4,917,178		$	4,486,562
Oil and gas properties		77,556			77,556
Stock compensation expense		1,299,471			1,228,834
Other		233			233
Total deferred income tax assets		6,294,437			5,793,185
Valuation allowance		(6,294,437	)		(5,793,185	)
Net deferred income tax asset	$	–		$	–