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Income taxes

12 Months Ended

Dec. 31, 2022

Disclosure Of Income Tax Text Block Abstract

20.

Income taxes

The actual income tax provision differs from the expected amount calculated by applying the Canadian combined federal and provincial corporate tax rates to income before tax. These differences result from the following:

	December 31,			December 31,
	2022			2021
	$			$
Loss before income tax		(16,515,389	)		(8,563,473	)
Statutory income tax rate		27	%		27	%
Expected income tax expense (recovery)		(4,459,155	)		(2,312,138	)
Increase (decrease) resulting from:
Change in unrecognized temporary differences		2,949,101			1,800,688
Permanent differences		1,159,884			433,595
Effect of tax rates in foreign jurisdictions		146,727			77,855
Share issue costs		201,740			-
Prior period adjustments		1,703			-
Income tax expense (recovery)		-			-

Recognized deferred tax assets and liabilities

Deferred tax assets are attributable to the following:

Income tax expense (recovery)

	December 31,			December 31,
	2022			2021
	$			$
Deferred tax expense (recovery)
Organization and reversal of temporary differences		(2,949,101	)		(1,800,688	)
Change in unrecognized temporary differences		2,949,101			1,800,688
Income tax expense (recovery)		-			-

	2022			2021
	$			$
Loss carryforwards		488,823			52,244
Deferred tax assets		488,823			52,244
Set-off of tax		(488,823	)		(52,244	)
Net deferred tax assets		-			-

Deferred tax liabilities are attributable to the following:

	December 31,			December 31,
	2022			2021
	$			$
Intangible assets		(39,481	)		-
Right-of-use assets		(42,472	)		(52,244	)
Fixed assets		(276,699	)
Right-of-use assets		(130,171	)		-
Marketable securities		(488,823	)		(52,244	)
Set-off of tax		488,823			52,244
Net deferred tax liability		-			-

Unrecognized deferred tax assets

	December 31,		December 31,
	2022		2021
	$		$
Deductible temporary differences		3,920,076		2,576,276
Tax losses		26,069,552		12,754,678
		29,989,628		15,330,954

Deferred tax assets have not been recognized in respect of the above items, because it is not probable that future taxable profit will be available against which the Company can use the benefits therefrom.

The Company has Canadian non-capital loss carryforwards of $28,628,469 (December 31, 2021 - $22,107,188), that will start expiring in 2028 and US federal net operating loss carryforwards of $21,099,321 (December 31, 2021 - $11,232,201), of which $15,223,100 can be carried forward indefinitely and $5,876,221 that will start expiring in 2027.