INCOME TAXES

A reconciliation of income tax expense and the product of accounting income before income tax, multiplied by the combined Canadian federal and provincial income tax rate (the rate applicable to the Canadian parent company) is as follows:



				Year ended
				December 31,
	2017			2016			2015
Loss before income taxes	$	(27,990	)	$	(39,864	)	$	(82,357	)
Combined federal and provincial rate	26.50		%	26.50		%	26.50		%
Expected income tax recovery	(7,400		)	(10,600		)	(21,825		)
Stock based compensation	934			704			291
Other non-deductible/non-taxable items	(1,303		)	—			(2,984		)
Foreign tax rate differences	—			(2,962		)	(10,180		)
Unrecognized deferred tax assets	7,769			12,858			34,698
Income tax expense	$	—		$	—		$	—

The components of the net deferred tax assets and liabilities as of December 31, 2017, 2016 and 2015 are as follows:



	Year ended
	December 31,
	2017			2016
Current deferred tax assets
Inventories	2,148			2,900
Short-term investments	1,216			413
Total current deferred tax assets	3,364			3,313
Non-current deferred tax assets
Operating loss carry forwards	74,644			91,441
Capital loss carry forwards	15,286			21,322
Deferred revenue and other	3,695			3,885
Mineral properties and deferred costs	28,080			40,581
Asset retirement obligations	4,844			6,398
Intangibles and other	(663		)	(2,524		)
Property, plant and equipment	845			(751		)
Total non-current deferred tax assets	126,731			160,352
Subtotal deferred tax asset	130,095			163,665
Less: valuation allowance	(130,095		)	(163,665		)
Net deferred tax asset	$	—		$	—

At December 31, 2017, and 2016, the Company recorded a valuation allowance against the net deferred tax assets for the above related items in the financial statements as management did not consider it more likely than not that the Company will be able to realize the deferred tax assets in the future.

The following table summarizes the changes to the valuation allowance:



For the Year	Balance at
Ended	Beginning of			Balance at End
December 31,	Period	Additions (a)	Deductions (b)	of Period
2017	163,666	4,259	(37,830)	130,095
2016	153,651	11,166	(1,151)	163,666




a)	The additions to the valuation allowance result from additional losses incurred, increases to other tax assets such as mineral property and property, plant and equipment. Management does not feel these additions meet the more-likely-than-no criterion for recognition.

b)	The reductions to the valuation allowance result primarily from the decrease in the net unrecognized deferred tax asset due to the change in the U.S. tax law which lowered the corporate tax rate from 35% to 21% beginning 1/1/2018. The decrease in our expected future tax rate results in a reduction in the value of our deferred tax assets by $49,369. As we have a full valuation allowance against our deferred tax asset, a corresponding decrease in our valuation allowance is also required.

The following table summarizes the Company's capital losses and net operating losses as of December 31, 2017 that can be applied against future taxable profit.



Country	Type	Amount		Expiry Date
Canada	Non-capital losses	$	31,159	2027 - 2035
Canada	Allowable Capital losses	3,285		None
Canada	Investment Tax Credits	1,211		2023 - 2026
United States	Net operating losses	250,518		2026 - 2035
United States	Capital losses	54,399		2019

Utilization of the United States loss carry forwards will be limited in any year as a result of previous changes in ownership. For the Energy Fuels Holding Corporation and Subsidiaries consolidated group, management estimates that approximately $75 million in net operating losses will expire unutilized as a result of these limitations.

Utilization of the Canadian loss carry forwards will be subject to the Acquisition of Control Rules in any year as a result of previous changes in ownership.