Income Taxes

12 Months Ended

Dec. 31, 2024

Major components of tax expense (income) [abstract]

23.

INCOME TAXES

Income tax recognized in profit or loss is comprised of the following:


	Years ended December 31,
		2024			2023
	$			$
Deferred income tax (recovery)/expense		(10,659	)		10,659
Total income tax (recovery)/expense		(10,659	)		10,659

A reconciliation of income taxes at Canadian statutory rates with reported taxes is as follows:


	Years ended December 31,
	2024			2023			2022
	$			$			$

(Loss)/income from continuing operations before taxes		(25,899	)		28,240			(32,527	)
Income/(loss) from discontinuing operations before taxes		-			1,270,788			(61,041	)
Total (loss)/income before taxes		(25,899	)		1,299,028			(93,568	)

Statutory tax rate		27	%		27	%		27	%

Expected income tax (recovery)/expense at statutory tax rate		(6,993	)		350,737			(25,263	)

Items not taxable for income tax purposes		(4,311	)		(348,159	)		9,846
Effect of lower tax rate in foreign jurisdiction		-			(162	)		3,048
Foreign exchange related to the weakening of the Argentine Pesos		-			5,670			-
Change in unrecognized deferred tax assets and other		645			2,573			12,369
Tax (recovery)/expense		(10,659	)		10,659			0

23.

INCOME TAXES (continued)

The significant components of the Company's deferred tax assets and liabilities are as follows:


	December 31, 2024			December 31, 2023
	$			$
Deferred tax assets:
Tax loss carryforwards		8,351			16,498
Loans to Exar Capital		217			217
Exploration and evaluation assets		21			-
Capital assets		5,234			95
Investment in Cauchari-Olaroz project		71			-
Other		-			268
Deferred tax assets		13,894			17,078

Deferred tax liabilities:
Investment in Cauchari-Olaroz project		-			(1,313	)
Investment in Arena Minerals		-			(10,659	)
Financing costs		(2,295	)		(2,295	)
Convertible debt		(11,290	)		(13,470	)
Other		(309	)		-
Deferred tax liabilities		(13,894	)		(27,737	)

Deferred income tax liability		0			(10,659	)

Deductible temporary differences for which no deferred tax assets are recognized as follows:


	December 31, 2024		December 31, 2023
	$		$
Tax loss carryforwards		45,848		48,771
Other		32,564		25,965
		78,412		74,736

The Company had deductible temporary differences for which deferred tax assets have not been recognized because it is not probable that future profits will be available against which the Company can utilize the benefits. The Company completed the Continuation from Canada to Switzerland on January 23, 2025, as such, the Canadian tax losses and other Canadian tax attributes are not available for carry forward to future years after the Continuation. The deductible temporary differences for which no deferred tax assets have been recognized in Canada are $62,372 (2023 – $101,545) and in Argentina are $14,405 (2023 – $8,330).

The Company recognized a deferred tax recovery of $10,659 during the year ended December 31, 2024, due to inflation adjustments on the tax basis of Pastos Grandes assets in Argentina partially offset by the weakening of the Argentine Peso against the US dollar on the tax basis of Pastos Grandes assets.