Annual report pursuant to Section 13 and 15(d)

INCOME TAXES (Tables)

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INCOME TAXES (Tables)
12 Months Ended
Sep. 30, 2019
Income Tax Disclosure [Abstract]  
Schedule of actual income tax provision for continuing operations

The provision for income taxes consists of the following for the years ended September 30, 2019 and 2018:

      2019       2018  
FEDERAL                
Current   $     $  
Deferred            
STATE                
Current            
Deferred            
TOTAL PROVISION   $     $  

 

Schedule of provision for income taxes

The difference between the actual income tax provision versus tax computed at the statutory rate is as follows for the years ended September 30, 2019 and 2018, respectively:

 

    2019     2018  
Expected provision (based on statutory rate of 21%)   $ (2,881,988)     $ (553,714)  
Effect of:                
Increase in valuation allowance     2,879,685       2,696,631  
Non-deductible expense     500,638       53,493  
Rate change           (2,305,270)  
Other, net     (498,335)       108,860  
Total actual provision   $     $  

 

Schedule of deferred income tax assets and liabilities

Deferred income tax assets and liabilities at September 30, 2019 and 2018, respectively, consist of the following:

 

    2019     2018  
DEFERRED TAX ASSETS (LIABILITIES)                
Net operating losses   $ 10,295,547     $ 7,131,636  
Exploration costs     (1,110,135 )     (1,503,472 )
Oil and natural gas leases     2,336,776       2,192,654  
IDC     (1,036,737 )      
Partnership ordinary loss     (178,359 )      
Stock based compensation     567,406       411,287  
Accrued interest and expenses not paid     386,685       271,190  
Derivative financial instrument     69,120       (57,059 )
Differences in book/tax depreciation     9,191       13,573  
Net deferred tax asset   $ 11,339,494     $ 8,459,809  
Valuation allowance     (11,339,494 )     (8,459,809 )
NET DEFERRED TAXES   $     $