Federal Income Taxes

12 Months Ended

Dec. 31, 2014

Income Tax Disclosure [Abstract]

Federal Income Taxes

12. FEDERAL INCOME TAXES

We recognize future tax assets and liabilities for each tax jurisdiction based on the difference between the financial reporting and tax bases of assets and liabilities using the enacted tax rates expected to be in effect when the taxes are paid or recovered. A valuation allowance is provided against net future tax assets for which we do consider the realization of such assets to meet the required “more likely than not” standard.

Our future tax assets and liabilities at December 31, 2014 and 2013 include the following components:

	December 31,
	2014			2013
Deferred tax assets:
Non-Current:
Net operating loss carryforwards	$	71,882		$	63,539
Mineral properties		11,375			14,153
Equipment & Furniture		133			127
Restoration Reserves		1,360			1,303
Stock-based compensation		199			—
Derivatives		—			37
Deferred tax assets		84,949			79,159
Valuation allowance		(82,435	)		(78,544	)
Net	$	2,514		$	615
Deferred tax liabilities:
Current:
Prepaids and other		100		$	50
		100			50
Non-Current:
Derivatives		(956	)		—
Equipment & Furniture		(1,658	)		(665	)
		(2,614	)		(665	)
Deferred tax liabilities		(2,514	)		(615	)
Net deferred tax asset (liability)	$	—		$	—

The valuation allowance increased $3,891 from the year ended December 31, 2013 to the year ended December 31, 2014. This was the result of an increase in the net deferred tax assets, primarily net operating loss carryforwards (“NOLs”), equity based compensation, and exploration spending on mineral properties. Because we are unable to determine whether it is more likely than not that the net deferred tax assets will be realized, we continue to record a 100% valuation against the net deferred tax assets.

At December 31, 2014, we had U.S. net operating loss carryforwards of approximately $206,364, which expire from 2018 to 2034. This included approximately $32,826 in net operating loss carryforwards associated with the Neutron merger.

Section 382 of the Internal Revenue Code could apply and limit our ability to utilize a portion of the US net operating loss carryforwards. Following the issuance of the Company’s Common Stock in 2001 and the Neutron merger in 2012, the ability to utilize the net operating loss carryforwards will be severely limited on an annual and aggregate basis. A formal Section 382 study has not been completed, therefore the actual usage of US net operating loss carryforwards has not been determined. Similar limitations apply to the state net operating loss carryforwards related to the Neutron acquisition.

A reconciliation of expected income tax on net income at statutory rates is as follows:

	Year ended December 31,
	2014			2013
Net loss	$	(10,684	)	$	(20,294	)
Statutory tax rate		34	%		34	%
Tax recovery at statutory rate		(3,633	)		(6,900	)
Change in tax rates		—			636
Mineral property adjustments		1,975			(4,210	)
Stock based compensation		12			416
Operating loss carryforward adjustment		(2,251	)		636
Nondeductible write-offs		6			126
Change in valuation allowance		3,891			9,296
Income tax expense (recovery)		$—			$—

We do not have any unrecognized income tax benefits. Should we incur interest and penalties relating to tax uncertainties, such amounts would be classified as a component of the interest expense and operating expense, respectively.

Uranium Resources, Inc., and its wholly owned subsidiaries, files in the U.S. federal jurisdiction and various state jurisdictions. The years still open for audit are generally the current year plus the previous three. However, because we have NOLs carrying forward, certain items attributable to closed tax years are still subject to adjustment by applicable taxing authorities through an adjustment to tax losses carried forward to open years.