INCOME TAX

12 Months Ended

Mar. 31, 2025

Major items causing the Company’s income tax rate to differ from the Canadian statutory rate of approximately 26.5% are as follows:


	Year ended March 31,
	2025	2024
	$	$
Net loss before income taxes	(113,137)	(78,080)

Expected recovery at statutory rate	29,981	20,691
Non-capital losses acquired on acquisition of subsidiary	—	11,658
Share-based compensation	(10,497)	(3,680)
Share issuance costs	122	4,420
Difference between Canadian and foreign tax rates	(9,317)	(5,440)
Effect of exchange on unbooked deferred tax assets	351	(112)
Non-deductible expenses	(103)	(132)
Change in unrecognized deferred tax assets	(10,537)	(27,405)
Income tax recovery	—	—

The significant components of the Company’s deferred tax assets resulting from temporary differences, unused tax credits and unused tax losses, that have not been included on the consolidated statement of financial position, are as follows:


As at	March 31, 2025	March 31, 2024
	$	$
Non-capital loss carryforwards - Canada	22,310	20,168
Non-capital loss carryforwards - United States	2,533	2,344
Non-capital loss carryforwards - Ireland	18,327	10,391
Non-capital loss carryforwards - United Kingdom	10,767	10,282
Deferred compensation	1,653	1,474
Research and Development expenditures	2,538	1,681
Share issuance costs	3,102	4,361
Depreciation/Capital cost allowance differences	15	7
	61,245	50,708
Valuation allowance	(61,245)	(50,708)
	—	—

Non-capital loss balance

As at March 31, 2025, the Company has non-capital losses in Canada, which under certain circumstances can be used to reduce taxable income of future years. The non-capital losses expire as follows:


Year of expiry			$
2036			1
2037			62
2038			32
2039			115
2040			863
2041			21,856
2042			16,019
2043			10,704
2044			24,397
2045			10,105
			84,154

As at March 31, 2025, the Company has non-capital losses in the United States and Massachusetts of $12,064, which under certain circumstances can be used to reduce the taxable income of future years. The federal losses have no expiry but are subject to limitations on utilization as laid out below. The Massachusetts non-capital losses, stated in Canadian dollars expire as follows:


Year of expiry			$
2040			1,053
2041			1,543
2042			4,979
2043			1,593
2044			1,425
2045			1,471
			12,064

Although the US federal losses carryforward indefinitely, they are subject to restrictions on their deductibility. For federal purposes the deductibility of $2,596 is restricted to 80% of taxable income in the year of deduction. The deductibility of $1,053 is further restricted to an annual limitation under Section 382. As at March 31, 2025, the annual limitation was $153.

As at March 31, 2025, the Company has non-capital losses in Ireland, which under certain circumstances can be used to reduce taxable income of future years. The non-capital losses in Ireland, stated in Canadian Dollars, expire as follows:


Year of expiry			$
2042			22,965
2043			23,017
2044			33,857
2045			57,875
			137,714

As at March 31, 2025 the Company had $43,208 of non-capital losses in UK which under certain circumstances can be used to reduce the taxable income of future years. These losses do not expire.