XML 39 R21.htm IDEA: XBRL DOCUMENT v3.23.2
INCOME TAXES
 12 Months Ended
Mar. 31, 2023
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

                
   

2023

($)		    

2022

($)		  

Net income loss before tax

     (11,506 )     (15,016 )

Tax rate

     21

%

     21

%
                 

Expected income tax recovery

     (2,416 )     (3,153

)

Impact of tax rate differences in foreign jurisdictions

     (7 )     -  

Tax rate changes and other adjustments

     (667 )     (385

)

Permanent differences

     88       50  

Change in valuation allowance

     3,002       3,488  
      -       -  

 

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

                
   

2023

($)		    

2022

($)		  
                 

Net operating loss carry-forwards foreign

     137       149  

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

     12,888       10,487  

Temporary differences

     548       (66 )
                 

Net deferred tax asset

     13,573       10,570  

Valuation allowance

     (13,573 )     (10,570 )
      -       -  

 

The table below sets forth the details of expiration of the non-financial carried forward losses of the Company as of March 31, 2023, as under:

 

Year

 

Amount

(in thousands)

($)

 

 

 

 

 

 

2023

 

 

47

 

2024

    

309

  

2025

 

 

3

 

2026

 

 

12

 

2027

 

 

30

 

2028

 

 

14

 

2029

 

 

25

 

2030

 

 

141

 

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

 

 

14,966

 

2043

    

11,359

  

Total

 

 

61,915

 

 

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.