XML 369 R26.htm IDEA: XBRL DOCUMENT v3.25.0.1
Income Taxes
 12 Months Ended
Dec. 31, 2024
Income Tax Disclosure [Abstract]  
Income Taxes Income Taxes
Net loss before income taxes was generated as follows:
Years Ended December 31,
202420232022
Domestic - Canada$(21,525)$(11,666)$(12,442)
Foreign – outside of Canada(52,397)(14,412)(10,878)
$(73,922)$(26,078)$(23,320)
Income tax benefit is comprised of the following:
Years Ended December 31,
202420232022
Current tax expense
   Domestic – Canada$- $- $- 
   Foreign – outside of Canada38 2 2 
$38 $2 $2 
Deferred tax benefit
   Domestic – Canada- - - 
   Foreign – outside of Canada(5,967)(469)(167)
$(5,967)$(469)$(167)
Income tax benefit$(5,929)$(467)$(165)
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:
Years Ended December 31,
202420232022
Loss before tax$(73,922)$(26,078)$(23,320)
Federal income tax rate 27 %27 %27 %
Income tax recovery based on statutory rate(19,959)(7,041)(6,296)
Increase (decrease) resulting from:
    Permanent differences1,257 1,716 972 
    Non-controlling interest1,452 — — 
    Change in valuation allowance8,499 5,595 4,301 
    Other(631)9 (53)
    Effect of tax rate in foreign jurisdictions2,610 457 563 
    Tax rate differences and tax rate changes 843 (1,203)348 
    Income tax benefit$(5,929)$(467)$(165)
Deferred taxes result from the temporary differences between financial reporting carrying amounts and the tax basis of existing assets and liabilities. The table below summarizes the principal components of the deferred tax assets (liabilities) as follows :
December 31,
20242023
Deferred tax assets
Loss carryforwards$24,983 $17,155 
Mineral rights and properties4,952 6,273 
Inventory1,489 - 
Transaction and financing costs 1,685 2,260 
Lease liability97 128 
Warranty liability815 815 
Investment in partnership3,066 - 
Other197 122 
Deferred tax assets$37,284 $26,753 
Valuation allowance(34,697)(24,819)
Net deferred tax asset$2,587 $1,934 
Deferred tax liabilities
Investments in equity securities(786)(942)
Intangible assets(35)(38)
Right of use of assets(86)(120)
Mineral rights and properties(28,142)(28,306)
Other (518)(487)
Deferred tax liabilities$(29,567)$(29,893)
Deferred tax assets2,587 1,934 
Net deferred tax liability$(26,980)$(27,959)
Deferred income taxes have not been recorded on the basis differences for investments in consolidated subsidiaries as these basis differences are indefinitely reinvested or will reverse in a non-taxable manner. Quantification of the deferred income tax liability, if any, associated with indefinitely reinvested basis differences is not practicable.
A valuation allowance has been taken against the US federal and state deferred tax assets of $15,700. A valuation allowance has been taken against the Canadian deferred tax assets of $18,997.
As of December 31, 2024 and 2023, the Company has Canadian federal and provincial non-capital loss carryforwards of $66,611 and $49,452, respectively. The Canadian non-capital loss carryforwards expire between 2028 and 2044.
The Company has a US federal net operating loss carryforward of $31,004 and $23,008) with no expiration as of December 31, 2024 and 2023, respectively, and US federal net operating loss carryforwards of $5,658 as of December 31, 2024 and 2023 that expire between 2028 and 2037. In addition, these federal net operating losses that are not subject to expiry are limited to usage at 80% of taxable income in future years. The Company has state net operating loss carryforward of $4,545 with no expiration as of December, 31, 2024 and 2023 and state net operating loss carryforwards of $21,582 and $17,747 as of December 31, 2024 and 2023, respectively, that expire between 2033 and 2044.
Under Section 382 of the Internal Revenue Code of 1986, a corporation that undergoes an ownership change is subject to limitation on its use of pre-change tax attributes and carryforward to offset future taxable income. As of
December 31, 2024 and 2023, we have approximately $11,302 of net operating losses for certain subsidiaries subject to limitation under section 382.
We are subject to the continuous examination of our income tax returns by the Internal Revenue Service and other tax authorities. A change in the assessment of the outcomes of such matters could materially impact our consolidated financial statements. The calculation of tax liabilities involves dealing with uncertainties in the application of complex tax regulations. We recognize liabilities for anticipated tax audit issues based on our estimate of whether, and the extent to which, additional taxes may be required. If we ultimately determine that payment of these amounts is unnecessary, then we reverse the liability and recognize a tax benefit during the period in which we determine that the liability is no longer necessary. We also recognize tax benefits to the extent that it is more likely than not that our positions will be sustained if challenged by the taxing authorities. To the extent we prevail in matters for which liabilities have been established or are required to pay amounts in excess of our liabilities, our effective tax rate in a given period may be materially affected. An unfavorable tax settlement would require cash payments and may result in an increase in our effective tax rate in the year of resolution. A favorable tax settlement would be recognized as a reduction in our effective tax rate in the year of resolution. We do not have a liability related to uncertain positions for income taxes as of December 31, 2024.