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INCOME TAXES
 12 Months Ended
Dec. 31, 2024
Income Tax Disclosure [Abstract]  
Income Taxes INCOME TAXES
For financial reporting purposes, income before taxes includes the following components:
 Years Ended December 31,
 202420232022
Canada$(24,213)$(5,229)$(23,964)
Foreign(24,000)105,261 (35,980)
Total$(48,213)$100,032 $(59,944)
A reconciliation of income tax expense (benefit) and the product of accounting income before income tax, multiplied by the combined Canadian federal and provincial income tax rate (the rate applicable to the Canadian parent company) is as follows:
 Years Ended December 31,
 202420232022
Income (loss) before income taxes$(48,213)$100,032 $(59,944)
Combined federal and provincial rate26.50 %26.50 %26.50 %
Expected income tax (benefit)(12,776)26,508 (15,885)
Share-based compensation225 (893)572 
Transaction costs2,849 — — 
Other non-deductible/non-taxable items2,553 2,015 3,977 
Foreign tax rate differences(418)— — 
Unrecognized deferred tax assets7,195 (27,354)11,336 
Income tax benefit (expense)$(372)$276 $— 
The components of the net deferred tax assets are as follows:
 Years Ended December 31,
 20242023
Operating loss carry forwards$117,493 $93,241 
Mineral properties and deferred costs, United States13,990 16,872 
Property, plant and equipment8,907 986 
Accruals & reserves6,923 — 
Deferred revenue and other4,722 2,431 
Mineral properties and deferred costs, Other2,808 — 
Asset retirement obligations1,909 2,894 
Mineral properties and deferred costs, Canada1,724 1,726 
Mineral properties and deferred costs, Madagascar1,263 — 
Capital loss carry forwards837 849 
Inventories832 547 
Short-term investments209 209 
Total deferred tax assets161,617 119,755 
Less: valuation allowance(161,617)(119,755)
Net deferred tax assets$— $— 
As of December 31, 2024 and 2023, the Company maintained a full valuation allowance against its net deferred tax assets. The Company continually reviews the adequacy of the valuation allowance and intends to continue maintaining a full valuation allowance on its net deferred tax assets until there is sufficient evidence to support the reversal of all or a portion of the allowance. Should the Company's assessment change in a future period, it may release all or a portion of the valuation allowance, which would result in a deferred tax benefit in the period of adjustment.
The following table summarizes the changes to the valuation allowance:
For the Years EndedBalance  Balance
December 31,
Beginning of Period
Additions (1)
Deductions (2)
End of Period
2024$119,755 $45,743 $(3,881)$161,617 
2023$146,931 $— $(27,176)$119,755 
(1)The additions to the valuation allowance during the year ended December 31, 2024 result from the generation of additional tax losses and deferred tax assets acquired from Base Resources. For the year ended December 31, 2023, there were no additions to the valuation allowance.
(2)For the year ended December 31, 2024, the reductions to the valuation allowance result from the decrease to tax assets such as ARO and mineral properties in the U.S. For the year ended December 31, 2023, the reductions to the valuation allowance are primarily due to the decreases to other tax assets such as inventories.
The following table summarizes the Company's capital losses and net operating losses as of December 31, 2024 that can be applied against future taxable income.

CountryTypeAmountExpiry Date
CanadaNon-capital losses$55,970 2027 - 2039
CanadaAllowable capital losses3,157 None
CanadaInvestment tax credits1,148 2024-2027
United StatesPre-2018 net operating losses194,434 2026-2036
United StatesPost-2017 net operating losses122,005 None
AustraliaNet operating losses61,411 No expiration
MadagascarNet operating losses1,015 2025-2029
Other JurisdictionsNet operating losses899 Various
Total$440,039 
Under Section 382 of the Internal Revenue Code of 1986, 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 had an ownership change in 2015 and is subject to an annual limitation for the use of loss carryforwards generated prior to 2015.
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 U.S. 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.
The Company’s policy is to include interest and penalties related to uncertain tax positions in the income tax expense line on the financial statements. As of December 31, 2024, the Company does not have any uncertain tax positions.
For the year ended December 31, 2024, the Company recorded income tax benefit of $0.37 million on loss before tax of $48.21 million. For the year ended December 31, 2023, the Company recorded income tax expense of $0.28 million on income before tax of $100.03 million. For the year ended December 31, 2022, the Company did not record income tax benefit on loss before tax of $59.94 million. The effective tax rate was 0.77% and 0.28% for the years ended December 31, 2024 and 2023, respectively. For the year ended December 31, 2023, the effective tax rate was 0%, which was a result of the full valuation allowance on net deferred tax assets.