10. Income Taxes

The Company’s U.S. and foreign source income/(loss) is as follows:


	Years ended December 31,
	2019		2018
U.S.	$	(1,730)	$	(646)
Canada		(3,514)		(2,288)
Other Foreign		(4,142)		(5,780)
	$	(9,386)	$	(8,714)

During the years ended December 31, 2019 and 2018, the Company has recognized ‘nil’ current and deferred income tax expense or benefit in each of the US, Canadian, and other foreign jurisdictions, due to full valuation allowances within each jurisdiction.

Rate Reconciliation

A reconciliation of the combined income taxes at the statutory rates and the Company’s effective income tax (benefit)/expense is as follows:


	Years ended December 31,
	2019		2018
Income taxed at statutory rates	$	(2,311)	$	(2,125)
Increase (decrease) in taxes from:
Stock-based compensation		84		79
Other adjustments		102		5
Adjustment due to capital transactions
Prior year provision to actual adjustments		475		(2,867)
Change in US tax rate		—		—
Change in foreign tax rate		(1,361)		—
Differences in tax rates		(284)		(339)
Effect of foreign exchange		66		(6)
Expiration of NOLs		—		—
Change in valuation allowance		3,229		5,253
Income tax (benefit)/expense	$	—	$	—

Deferred Taxes

Deferred income taxes reflect the net effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. The significant components of our deferred tax assets and liabilities as at December 31 are as follows:


	December 31,
	2019		2018
Deferred income tax assets
Excess tax basis over book basis of property, plant and equipment	$	8,295	$	7,488
Marketable securities		500		667
Operating loss carryforwards		36,716		34,052
Capital loss carryforwards		13,618		13,276
Other		1,085		2,031
Total future tax assets		60,214		57,514
Valuation allowance for future tax assets		(59,886)		(56,659)
		328		855
Deferred income tax liabilities
Other investments		328		855
		328		855

Total Deferred Taxes	$	—	$	—

Valuation Allowance on Canadian and Foreign Tax Assets

We establish a valuation allowance against the future income tax assets if, based on available information, it is more likely than not that all of the assets will not be realized. The valuation allowance of $59,886 and $56,659 at December 31, 2019 and 2018, respectively, relates mainly to net operating loss carryforwards, in Canada and other foreign tax jurisdictions, where the utilization of such attributes is not more likely than not. The Company continually assesses both positive and negative evidence to determine whether it is more likely than not that deferred tax assets can be realized prior to their expiration.

Loss Carryforwards

The Company’s tax loss carryforwards expire as follows:


	Noncapital Canada		U.S.		Mexico		Barbados		Total
2019	$	—	$	—	$	—	$	—	$	—
2020		—		—		—		—		—
2021		—		—		—		(20)		(20)
2022		—		—		(6,706)		(31)		(6,737)
2023		—		—		(392)		(22)		(414)
2024		—		—		—		(4)		(4)
2025		—		—		(84)		(6)		(90)
2026		(1,027)		—		(789)		(6)		(1,822)
2027		(847)		—		—		(6)		(853)
2028		(5,245)		(1,287)		—		(6)		(6,538)
2029		(4,022)		(1,719)		—		—		(5,741)
2030		(5,032)		(1,970)		—		—		(7,002)
2031		(3,806)		(1,827)		—		—		(5,633)
2032		(6,397)		(3,407)		—		—		(9,804)
2033		(6,185)		(2,323)		—		—		(8,508)
2034		(4,420)		(3,098)		—		—		(7,518)
2035		(3,729)		(2)		—		—		(3,731)
2036		(2,799)		(2,655)		—		—		(5,454)
2037		(1,916)		(2,482)		—		—		(4,398)
2038		(2,666)		—		—		—		(2,666)
2039		(3,204)		—		—		—		(3,204)
	$	(51,295)	$	(20,770)	$	(7,971)	$	(101)	$	(80,137)

Note: U.S. loss carryforwards for tax years beginning in 2018 of $2,119, Canadian capital loss carryforwards of $100,874 and Australian NOLs of $49,418, which do not expire, are not included above.

Accounting for uncertainty in taxes

Accounting Standards Codification Topic 740 guidance requires that the Company evaluate all income tax positions taken, and recognize a liability for any uncertain tax positions that are not more likely than not to be sustained by the tax authorities. As of December 31, 2019, the Company believes it has no liability for unrecognized tax positions. If the Company were to determine there were any uncertain tax positions, the Company would recognize the liability and related interest and penalties within income tax expense.

Tax statute of limitations

The Company files income tax returns in Canada, U.S. federal and state jurisdictions and other foreign jurisdictions. There are currently no tax examinations underway for these jurisdictions. Furthermore, the Company is no longer subject to Canadian tax examinations by the Canadian Revenue Agency for years ended on or before December 31, 2016 or U.S. federal income tax examinations by the Internal Revenue Service for years ended on or before December 31, 2016. Some U.S. state and other foreign jurisdictions are still subject to tax examination for years ended on or before December 31, 2015.

Although certain tax years are closed under the statute of limitations, tax authorities can still adjust losses being carried forward into open years.