Income Taxes (Tables)

12 Months Ended

Dec. 31, 2025

Net loss before income taxes was generated as follows:


	As of December 31,
	2025		2024
Domestic - Canada	$	(28,587)	$	(21,525)
Foreign – outside of Canada	(34,924)		(52,397)
	$	(63,511)	$	(73,922)

Income tax expense (benefit) is comprised of the following:


	As of December 31,
	2025		2024
Current tax expense
Domestic – Canada	$	-	$	-
Foreign – outside of Canada	108		38
	$	108	$	38

Deferred tax benefit
Domestic – Canada	$	-	$	-
Foreign – outside of Canada	(596)		(5,967)
	$	(596)	$	(5,967)

Income tax benefit	$	(488)	$	(5,929)

Schedule of Income Taxes Paid, Net

Supplemental cash flow information related to leases was as follows:


	Years Ended December 31,
	2025	2024
Cash paid for operating leases	$203	$201
Supplemental disclosure of noncash leasing activities:
Right-of-use-assets obtained in exchange for new operating lease liabilities	$3,006	$67

The amounts of income tax paid, net of tax refunds received, are as follows:


	As of December 31,
	2025	2024
Domestic – Canada	0	0
Foreign – outside of Canada	108	38
	108	38

Schedule of Effective Income Tax Rate Reconciliation


	As of December 31,
	2025				2024
Loss before tax	$	(63,511)			$	(73,922)

Canadian Federal income tax	(9,527)		15.00	%	(11,088)		15.00	%
Nontaxable or nondeductible items
Share-based payment awards	630		(0.99)	%	729		(0.99)	%
Non-taxable portion of capital gains	(1,562)		2.46	%	-		-	%
Other	264		(0.42)	%	41		(0.05)	%
Cross-border taxes	-		-	%	-		-	%
Changes in valuation allowances	4,713		(7.42)	%	2,312		(3.13)	%
Other	(112)		0.18	%	(14)		0.02	%
Foreign tax effects
Statutory tax rate difference between United States and Canada	(2,426)		3.82	%	(3,678)		4.98	%
Nontaxable or nondeductible items	240		(0.38)	%	-		-	%
Tax rate differences and tax rate changes	-		-	%	552		(0.75)	%
Non-controlling interest	1,091		(1.72)	%	1,345		(1.82)	%
Changes in valuation allowances	3,786		(5.96)	%	4,217		(5.70)	%
Deferred only adjustment	1,576		(2.48)	%	-		-	%
Other	484		(0.76)	%	(507)		0.68	%
Tax rate differences and tax rate changes	355		(0.56)	%	162		(0.22)	%
Canadian provincial income tax	-		-	%			-	%
Income tax benefit	$	(488)	0.77	%	$	(5,929)	8.02	%

Schedule of Deferred Tax Assets and Liabilities

The table below summarizes the principal components of the deferred tax assets (liabilities) as follows:


		December 31,
		2025	2024
Deferred tax assets:
Loss carryforwards		$34,024	$24,983
Mineral rights and properties		3,363	4,952
Inventory		-	1,489
Transaction and financing costs		920	1,685
Lease liability		881	97
Warranty liability		815	815
Investment in partnership		4,039	3,066
Investments in equity and securities		2,880	-
Restricted interest and financing expenses		1,608	-
Other		2,282	197
Deferred tax assets		50,812	37,284
Valuation allowance		(46,906)	(34,697)
Net deferred tax asset		3,906	2,587


Deferred tax liabilities:
Investments in equity securities		-	(786)
Intangible assets		(31)	(35)
Right of use of assets		(828)	(86)
Mineral rights and properties		(28,162)	(28,142)
Property, plant and equipment		(1,030)	-
Other		(239)	(518)
Deferred tax liabilities		(30,290)	(29,567)
Deferred tax assets		3,906	2,587
Net deferred tax liability	$	$(26,384)	$(26,980)

Summary of Valuation Allowance

The following table summarizes the changes to the valuation allowance:


For the Years Ended	Balance						Balance
December 31,	Beginning of Period		Additions (1)		Deductions (2)		End of Period
2025	$	34,697	$	19,065	$	(6,856)	$	46,906
2024	$	24,819	$	12,138	$	(2,260)	$	34,697

(1) The additions to the valuation allowance during the year ended December 31, 2025 result from the generation of additional tax losses as well as increases to tax assets such as mineral property and inventory. 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.

(2) The reductions to the valuation allowance during the year ended December 31, 2025 result from the decrease to tax assets such as debt issuance costs, property, plant and equipment and asset retirement obligations. 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.

Summary of Operating Loss Carryforwards

The following table summarizes the Company’s capital losses and net operating losses as of December 31, 2025 that can be applied against future taxable income:

Country

Type

Amount

Expiry Date

Canada

Non-capital losses

80,542

Between 2028 and 2045

Canada

Investment tax credits

United States

Expiring loss (Federal and state)

32,291

Between 2028 and 2044

United States

Non-Expiring loss (Federal and state)

56,810

No expiration

Total

169,643