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INCOME TAXES
 12 Months Ended
Mar. 31, 2022
Income Tax Disclosure [Abstract]  
Income Tax Disclosure [Text Block]

NOTE 16 – INCOME TAXES

 

The Company calculates its provision for foreign and U.S. federal income taxes based on the current tax law. As the Company maintains a full valuation allowance against its deferred tax assets, there is no income tax expense recorded related to this change other than the Federal AMT credit which are refundable due to the passage of tax reform.

 

Due to the Company’s history of losses and uncertainty of future taxable income, a valuation allowance sufficient to fully offset net operating losses and other deferred tax assets has been established. The valuation allowance will be maintained until sufficient positive evidence exists to support a conclusion that a valuation allowance is not necessary.

 

Income tax expense/(benefit) for each of the years ended March 31 consists of the following:

 

   

Year Ended March 31,

(in thousands)

  

Income Tax Expense

                
   

2022

($)		    

2021

($)		  

Net income loss before tax

     (15,016 )     (8,811 )

Tax rate

     21 %     21

%
                 

Expected income tax recovery

     (3,153 )     (1,850 )

Impact of tax rate differences in foreign jurisdictions

     -       (33 )

Tax rate changes and other adjustments

     (385 )     (78 )

Permanent differences

     50       19  

Change in valuation allowance

     3,488       1,942  
      -       -  

 

The significant components of deferred income tax expense/(benefit) from operations before non-controlling interest for each of the years ended March 31 are approximated as following:

 

   

Year Ended March 31,

(in thousands)

  

Deferred income taxes

                
   

2022

($)		    

2021

($)		  
                 

Net operating loss carry-forwards foreign

     149       536  

Non-capital loss carry-forwards – U.S.

     10,487       7,373  

Temporary differences

     (66 )     (827 )
                 

Net deferred tax asset

     10,570       7,082  

Valuation allowance

     (10,570 )     (7,082 )
      -       -  

 

The table below sets forth the details of expiration of the non-financial carried forward losses of the Company as of March 31, 2022, as under:

 

Year

  

Amount

(in thousands)

($)

  
         

2023

     52  

2024

     343  

2025

     4  

2026

     14  

2027

     34  

2028

     16  

2029

     28  

2030

     210  

2031

     3,081  

2032

     4,141  

2033

     627  

2034

     1,269  

2035

     1,735  

2036

     1,176  

2037

     819  

2038

     1,256  

2039

     4,132  

2040

     7,932  

2041

     8,841  

2042

     14,897  

Total

     50,607  

 

Realization of deferred tax assets, including those related to net operating loss carryforwards, are dependent upon future earnings, if any, of which the timing and amount are uncertain. Accordingly, the net deferred tax assets have been fully offset by a valuation allowance. Based upon the Company’s current operating results management cannot conclude that it is more likely than not that such assets will be realized. The Company files income tax returns in India, Hong Kong, Colombia, and the U.S.