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INCOME TAXES
 12 Months Ended
Mar. 31, 2024
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

                
   

2024

($)		    

2023

($)		  

Net income loss before tax

     (13,000 )     (11,506 )

Tax rate

     21 %     21 %
                 

Expected income tax recovery

     (2,730 )     (2,416 )

Impact of tax rate differences in foreign jurisdictions

     (151 )     (7 )

Tax rate changes and other adjustments

     1,475       (667 )

Permanent differences

     -       88  

Change in valuation allowance

     1,406       3,002  
      -       -  

 

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

                
   

2024

($)		    

2023

($)		  
                 

Net operating loss carry-forwards foreign

     287       137  

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

     14,272       12,888  

Temporary differences

     418       548  
                 

Net deferred tax asset

     14,977       13,573  

Valuation allowance

     (14,977 )     (13,573 )
      -       -  

 

The table below sets forth the details of expiration of the non-financial carried forward losses of the Company as of March 31, 2024, as under:

 

Year

  

Amount

(in thousands)

($)

  

2024

     43  

2025

     -  

2026

     -  

2027

     10  

2028

     9  

2029

     -  

2030

     37  

2031

     3,082  

2032

     5,140  

2033

     627  

2034

     1,269  

2035

     1,735  

2036

     1,175  

2037

     819  

2038

     1,256  

2039

     4,131  

2040

     7,932  

2041

     8,841  

2042

     14,966  

2043

     8,552  

2044

     9,396  

No expiry

     78  

Total

     69,101  

 

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, Colombia, and the U.S. The Company has a carry-forward R&D tax credit of approximately $4,542 thousand