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INCOME TAXES
 12 Months Ended
Mar. 31, 2025
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        
   2025
($)		   2024
($)		 
Net income loss before tax   (7,121)   (13,000)
Tax rate   21%   21%
           
Expected income tax recovery   (1,495)   (2,730)
Impact of tax rate differences in foreign jurisdictions   (72)   (151)
Tax rate changes and other adjustments   (2,305)   1,475 
Permanent differences   -    - 
Change in valuation allowance   3,872    1,406 
    -    - 

 

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 follows:

 

   Year Ended March 31,
(in thousands)		 
Deferred income taxes        
   2025
($)		   2024
($)		 
         
Net operating loss carry-forwards foreign   332    287 
Non-capital loss carry-forwards – U.S.   18,365    14,272 
Temporary differences   427    418 
           
Net deferred tax asset   19,124     14,977 
Valuation allowance   (19,124)   (14,977)
    -    - 

The table below sets forth the details of expiration of the non-financial carried forward losses of the Company as of March 31, 2025, as under:

 

Year   Amount
(in thousands)
($)		  
2029     16  
2030     37  
2031     3,081  
2032     4,141  
2033     627  
2034     1,269  
2035     1,735  
2036     1,176  
2037     819  
No expiry     1,256  
No expiry     4,132  
No expiry     7,932  
No expiry     8,841  
No expiry     14,966  
No expiry     8,552  
No expiry     6,884  
No expiry     22,006  
Total     87,469  

 

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.