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:



	Years ended December 31,
	2019			2018			2017
Loss before income taxes	$	(38,094	)	$	(25,362	)	$	(27,990	)
Combined federal and provincial rate	26.50		%	26.50		%	26.50		%
Expected income tax recovery	(10,095		)	(6,721		)	(7,400		)
Share-based compensation	985			623			934
Other non-deductible/non-taxable items	(376		)	597			(1,303		)
Foreign tax rate differences	—			—			—
Unrecognized deferred tax assets	9,486			5,501			7,769
Income tax expense	$	—		$	—		$	—

The components of the net deferred tax assets and liabilities as of December 31, 2019 and 2018 are as follows:



	Years ended December 31,
	2019			2018
Current deferred tax assets
Inventories	$	5,405		$	1,812
Short-term investments	209			209
Total current deferred tax assets	5,614			2,021
Non-current deferred tax assets
Operating loss carry forwards	88,156			80,290
Capital loss carry forwards	852			14,903
Deferred revenue and other	2,719			3,622
Mineral properties and deferred costs	27,541			28,317
Asset retirement obligations	5,028			5,062
Intangibles and other	—			—
Property, plant and equipment	1,644			1,549
Total non-current deferred tax assets	125,940			133,743
Subtotal deferred tax asset	131,554			135,764
Less: valuation allowance	(131,554		)	(135,764		)
Net deferred tax asset	$	—		$	—

At December 31, 2019, and 2018, 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 Years Ended	Balance							Balance
December 31,	Beginning of Period		Additions (a)		Deductions (b)			End of Period
2019	$	135,764	$	11,459	$	(15,669	)	$	131,554
2018	$	130,095	$	7,469	$	(1,800	)	$	135,764



a)	The additions to the valuation allowance result from additional losses incurred and 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 decreases to other tax assets such as inventories, short-term investments and deferred revenue.

The following table summarizes the Company's capital losses and net operating losses as of December 31, 2019 that can be applied against future taxable profit.



Country	Type	Amount		Expiry Date
Canada	Non-capital losses	$	40,085	2027 - 2037
Canada	Allowable capital losses	3,215		None
Canada	Investment tax credits	1,185		2023-2027
United States	Pre-2018 net operating losses	268,395		2026-2037
United States	Post-2017 net operating losses	24,186		None

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.

In addition, as a result of the Tax Cuts and Jobs Act, United States net operating loss carryforwards generated after December 31, 2017, are limited to usage at 80% of taxable income and will be permitted to be carried forward indefinitely.

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.