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Note 15 - Income Taxes | 12 Months Ended
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Nov. 30, 2023
Notes to Financial Statements |
Income Tax Disclosure [Text Block] | NOTE 15 – INCOME TAXES The Company’s statutory tax rate is 27% and is expected to remain at this amount until 2024. The Company’s Income tax expense (recovery) consisted of:
|  | Years ended November 30, |
|  | 2023 |  |  | 2022 |  |  | 2021 |
Current: |  |  |  |  |  |  |  |  |  |  |  |
Canada |  | $ | — |  |  | $ | — |  |  | $ | 110 |
Foreign |  |  | 39 |  |  |  | (33 | ) |  |  | 27 |
|  |  | 39 |  |  |  | (33 | ) |  | $ | 137 |
Deferred: |  |  |  |  |  |  |  |  |  |  |  |
Canada |  |  | — |  |  |  | — |  |  |  | — |
Foreign |  |  | — |  |  |  | — |  |  |  | — |
|  |  | — |  |  |  | — |  |  |  | — |
Income tax (recovery) expense |  | $ | 39 |  |  | $ | (33 | ) |  | $ | 137 |
The Company’s Loss before income taxes consisted of:
|  | Years ended November 30, |
|  | 2023 |  |  | 2022 |  |  | 2021 |
Canada |  | $ | (18,213 | ) |  | $ | (17,062 | ) |  | $ | (17,723 | )
Foreign |  |  | (28,551 | ) |  |  | (36,314 | ) |  |  | (22,676 | )
|  | $ | (46,764 | ) |  | $ | (53,376 | ) |  | $ | (40,399 | )
The Company’s Income tax (recovery) expense differed from the amounts computed by applying the Canadian statutory corporate income tax rates for the following reasons:
|  |  |  |  |  | Years ended November 30, |
|  |  |  |  |  | 2023 |  |  |  |  |  |  | 2022 |  |  |  |  |  |  | 2021 |
Loss before income taxes |  |  |  |  |  | $ | (46,764 | ) |  |  |  |  |  | $ | (53,376 | ) |  |  |  |  |  | $ | (40,399 | )
Combined federal and provincial statutory tax rate |  |  | 27.0 | % |  |  | (12,626 | ) |  |  | 27.0 | % |  |  | (14,412 | ) |  |  | 27.0 | % |  |  | (10,908 | )
Reconciling items: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Non-deductible expenditures |  |  | -5.9 | % |  |  | 2,767 |  |  |  | -4.5 | % |  |  | 2,411 |  |  |  | -6.1 | % |  |  | 2,483 |
Foreign accrual property income |  |  | -3.6 | % |  |  | 1,682 |  |  |  | -1.2 | % |  |  | 666 |  |  |  | -1.9 | % |  |  | 771 |
Effect of different statutory tax rates on earnings or losses of subsidiaries |  |  | 0.9 | % |  |  | (407 | ) |  |  | 1.0 | % |  |  | (518 | ) |  |  | 0.8 | % |  |  | (323 | )
Change in valuation allowance on deferred tax assets |  |  | -18.5 | % |  |  | 8,623 |  |  |  | -22.3 | % |  |  | 11,852 |  |  |  | -20.1 | % |  |  | 8,115 |
Other |  |  | — |  |  |  | — |  |  |  | 0.1 | % |  |  | (32 | ) |  |  | — |  |  |  | (1 | )
Income tax (recovery) expense |  |  | -0.1 | % |  | $ | 39 |  |  |  | 0.1 | % |  | $ | (33 | ) |  |  | -0.3 | % |  | $ | 137 |
Components of the Company’s deferred income tax assets (liabilities) are as follows:
|  | As of November 30, |
|  | 2023 |  |  | 2022 |
Deferred tax income assets: |  |  |  |  |  |  |  |
Net operating loss carry forwards |  | $ | 193,508 |  |  | $ | 188,783 |
Capital loss carry forwards |  |  | 47,995 |  |  |  | 48,264 |
Mineral properties |  |  | 624 |  |  |  | 628 |
Intangible assets |  |  | 462 |  |  |  | 465 |
Property and equipment |  |  | 184 |  |  |  | 198 |
Investment in affiliates |  |  | 47,522 |  |  |  | 44,713 |
Unpaid interest expense |  |  | 2,105 |  |  |  | 2,105 |
Unrealized loss on investments |  |  | 196 |  |  |  | 233 |
Asset retirement obligation |  |  | 131 |  |  |  | 386 |
Other |  |  | 1,129 |  |  |  | 1,068 |
|  |  | 293,856 |  |  |  | 286,843 |
Valuation allowances |  |  | (293,536 | ) |  |  | (285,611 | )
|  |  | 320 |  |  |  | 1,232 |
Deferred income tax liabilities: |  |  |  |  |  |  |  |
Notes receivable |  |  | — |  |  |  | (942 | )
Capitalized assets and other |  |  | (320 | ) |  |  | (290 | )
|  |  | (320 | ) |  |  | (1,232 | )
Net deferred income tax assets (liabilities) |  | $ | — |  |  | $ | — |
Net operating losses available to offset future taxable income are as follows:
Year of Expiry |  | U.S. |  |  | Canada |
2024 |  | $ | 1,032 |  |  | $ | — |
2025 |  |  | 1,246 |  |  |  | — |
2026 |  |  | 13,382 |  |  |  | 17,795 |
2027 |  |  | 18,493 |  |  |  | 1,777 |
2028 |  |  | 85 |  |  |  | — |
2029 |  |  | 11,223 |  |  |  | 11,515 |
2030 |  |  | 10,916 |  |  |  | 15,322 |
2031 |  |  | 16,580 |  |  |  | 15,249 |
2032 |  |  | 309,772 |  |  |  | 18,610 |
2033 |  |  | 14,529 |  |  |  | 14,044 |
2034 |  |  | 15,607 |  |  |  | 10,104 |
2035 |  |  | 16,383 |  |  |  | 9,227 |
2036 |  |  | 14,764 |  |  |  | 9,080 |
2037 |  |  | 14,111 |  |  |  | 6,037 |
2038 |  |  | — |  |  |  | 6,153 |
2039 |  |  | — |  |  |  | 5,578 |
2040 |  |  | — |  |  |  | 6,642 |
2041 |  |  | — |  |  |  | — |
2042 |  |  | — |  |  |  | 6,854 |
2043 |  |  | — |  |  |  | 4,153 |
Indefinite |  |  | 72,413 |  |  |  | — |
|  | $ | 530,536 |  |  | $ | 158,140 |
U.S. net operating losses arising in tax years ending after December 31, 2017 can be carried over to each taxable year following the tax year of loss (indefinitely). The Company has capital loss carry-forwards of approximately $355,516 as of November 30, 2023 (November 30, 2022: $357,511) for Canadian tax purposes. These tax losses are carried forward indefinitely. Future use of U.S. loss carry-forwards is subject to certain limitations under provisions of the Internal Revenue Code including limitations subject to Section 382, which relates to a 50% change in control over a three-year period and are further dependent upon the Company attaining profitable operations. Ownership changes occurred on January 22, 2009 and on December 31, 2012 and the U.S. tax losses related to NOVAGOLD Resources Alaska Inc. and its investment in Donlin Gold for the prior three-year periods prior to the change in control may be subject to limitation under Section 382. Accordingly, the Company’s ability to use these losses may be limited or they may expire un-utilized. Losses incurred to date may be further limited if a subsequent change in control occurs. Management assesses the available positive and negative evidence to estimate if sufficient future taxable income will be generated to use the existing deferred tax asset. Significant pieces of objective negative evidence evaluated included the cumulative loss incurred as of November 30, 2023. Such objective evidence limits the ability to consider other subjective evidence such as management’s projections for future growth. On the basis of this evaluation, as of November 30, 2023, a valuation allowance of $293,536 (November 30, 2022: $285,611), has been recorded in order to measure only the portion of the deferred tax asset that more likely than not will be realized. The amount of the deferred tax asset considered realizable; however, could be adjusted if estimates of future taxable income during the carry forward period are reduced or if objective negative evidence in the form of cumulative losses is no longer present and additional weight may be given to subjective evidence such as management’s projections for growth. Uncertain tax position There were no uncertain tax positions as of November 30, 2023, 2022 and 2021. The Company recognizes any interest and penalties related to uncertain tax positions, if any, as income tax expense. Accrued interest and penalties are included within the related tax liability line in the consolidated balance sheet. As of November 30, 2023, 2022 and 2021, there were no accrued interest and penalties related to uncertain tax positions. The Company is subject to income taxes in Canada and the United States. With few exceptions, the tax years that remain subject to examination as of November 30, 2023, are 2018 to 2023 in Canada and 2019 to 2023 in the United States.

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