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INCOME TAXES
 12 Months Ended
Dec. 31, 2021
Income Tax Disclosure [Abstract]  
Income Taxes INCOME TAXES
For financial reporting purposes, income before taxes includes the following components:
 Years ended December 31,
 202120202019
Canada$(7,549)$(10,407)$(4,174)
Foreign8,997 (17,465)(33,920)
Total$1,448 $(27,872)$(38,094)
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,
 202120202019
Income (Loss) before income taxes$1,448 $(27,872)$(38,094)
Combined federal and provincial rate26.50 %26.50 %26.50 %
Expected income tax recovery$384 $(7,385)$(10,095)
Share-based compensation(89)565 985 
Other non-deductible/non-taxable items159 1,985 (376)
Unrecognized deferred tax assets(454)4,835 9,486 
Income tax expense$— $— $— 
The components of the net deferred tax assets and liabilities as of December 31, 2021 and 2020 are as follows:
 Years ended December 31,
 20212020
Deferred tax assets  
Inventories$6,380 $7,051 
Short-term investments209 209 
Operating loss carry forwards101,345 95,060 
Capital loss carry forwards914 843 
Deferred revenue and other1,520 2,057 
Mineral properties and deferred costs, United States18,682 24,794 
Mineral properties and deferred costs, Canada1,884 1,760 
Asset retirement obligations3,627 3,455 
Property, plant and equipment942 1,806 
Total deferred tax assets$135,503 $137,035 
Less: valuation allowance(135,503)(137,035)
Net deferred tax assets$— $— 
At December 31, 2021, and 2020, 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 EndedBalance  Balance
December 31,
Beginning of PeriodAdditions (a)Deductions (b)End of Period
2021$137,035 $6,653 $(8,185)$135,503 
2020$131,554 $7,140 $(1,659)$137,035 
a)The 2021 additions to the valuation allowance result from additional losses incurred and increases to other tax assets such as reclamation obligations. Management does not feel these additions meet the more-likely-than-not criterion for recognition.
  
b)The 2021 reductions to the valuation allowance result primarily from the decreases to other tax assets such as property, plant and equipment and mineral properties.
The following table summarizes the Company's capital losses and net operating losses as of December 31, 2021 that can be applied against future taxable profit.
CountryTypeAmountExpiry Date
CanadaNon-capital losses$49,737 2027 - 2039
CanadaAllowable capital losses3,450 None
CanadaInvestment tax credits1,254 2023-2027
United StatesPre-2018 net operating losses292,139 2026-2036
United StatesPost-2017 net operating losses40,562 None
United StatesUS Excess Interest Carryforward11 None
Under Section 382 of the Internal Revenue Code of 1986, (“IRC Section 382”), a corporation that undergoes an ownership change is subject to limitations on its use of pre-change tax attributes and carryforwards to offset future taxable income. The Company has determined that as a result of previous changes in ownership, approximately $75 million in net operating losses will never be utilized as a result of these limitations and the remaining net operating losses are not expected to be utilized.
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.
The Company files income tax returns in the US federal and various state jurisdictions with varying statutes of limitations. The Company’s NOL from all years may be subject to adjustment for three or four years following the year in which utilized. We do not anticipate that any potential tax adjustments will have a significant impact on our financial position or results of operations.
Company policy is to include interest and penalties related to uncertain tax positions in the income tax expense line on the financial statements. However, as of December 31, 2021 the Company does not have any uncertain tax positions.