XML 143 R28.htm IDEA: XBRL DOCUMENT
v3.24.3

Income Taxes | 12 Months Ended
--- | ---
Dec. 31, 2023
Income Taxes [Abstract] |
INCOME TAXES | 20. INCOME TAXES a) Provision for Income Taxes The components of loss before income taxes are as follows:
|  | Year Ended December 31,
|  | 2023 |  | 2022
Domestic |  | $ | (8,925,899 | ) |  | $ | (20,999,110 | )
Foreign |  |  | (1,586,258 | ) |  |  | (1,474,082 | )
Total |  | $ | (10,512,157 | ) |  | $ | (22,473,192 | )
For purposes of reconciling the Company’s provision for income taxes at the statutory rate and the Company’s provision (benefit) for income taxes at the effective tax rate, a notional 27% tax rate was applied as follows:
|  | 2023 |  | 2022
|  | ($) |  | ($)
Loss for the year |  | (10,512,157 | ) |  | (22,473,192 | )
Income tax at federal statutory rate |  | (2,838,000 | ) |  | (5,876,000 | )
Increase (decrease) in tax resulting from: |  |  |  |  |  |
Change in statutory, foreign tax, foreign exchange rates and other |  | 536,000 |  |  | (12,000 | )
Permanent differences |  | (218,000 | ) |  | 1,875,000 |
Share issue costs |  | — |  |  | 370,000 |
Change in unrecognized deductible temporary differences |  | 2,686,000 |  |  | 3,643,000 |
Other |  | (166,000 | ) |  | — |
Income tax expense |  | — |  |  | — |
The difference between the statutory federal income tax rate and the Company’s effective tax rate in 2023, and 2022 is primarily attributable to the difference between the U.S. and foreign tax rates, non-deductible officer compensation, share-based compensation, true up of deferred taxes, other non-deductible permanent items, and change in valuation allowance. Note that the statutory rate will be the Canadian rate as the parent (filer) is domiciled in Canada. The net deferred tax assets (liabilities) are comprised of the following:
|  | 2023 |  | 2022
|  | ($) |  | ($)
Deferred tax assets: |  |  |  |  |  |
Non-capital losses carry-forward |  | 15,769,000 |  |  | 14,379,000 |
Exploration and Evaluation assets |  | 1,470,000 |  |  | 1,470,000 |
Share issuance costs |  | 733,000 |  |  | 789,000 |
Intangible assets |  | 2,047,000 |  |  | 622,000 |
Other deferreds |  | 1,000 |  |  | 12,000 |
Allowable capital losses |  | 3,635,000 |  |  | 3,558,000 |
Property and equipment |  | 77,000 |  |  | 76,000 |
Valuation allowance |  | (23,732,000 | ) |  | (20,906,000 | )
Total deferred income taxes |  | — |  |  | — |
A valuation allowance is recorded to reduce deferred tax assets to the amount that is more likely than not to be realized based on an assessment of positive and negative evidence, including estimates of future taxable income necessary to realize future deductible amounts. A significant piece of objective negative evidence evaluated was the cumulative loss incurred over the three-year period ended December 31, 2023. Such objective evidence limits the ability to consider other subjective evidence such as its projections for future growth. On the basis of this evaluation, at December 31, 2023 and 2022, a valuation allowance of $23.7 million and $20.9 million, respectively, has been recorded. As of December 31, 2023, the Company has accumulated federal and state net operating loss (“NOL”) carryforwards of $30.1 million and $15.6 million, respectively. The significant components of the Company’s temporary differences, unused tax credits and unused tax losses that have not been included on the consolidated balance sheets are as follows:
Temporary Differences |  | 2023 |  | Expiry Date Range |  | 2022 |  | Expiry Date Range
|  | ($) |  |  |  | ($) |  |
Non-capital losses available for future periods – US |  | 45,697,000 |  | 2036 to indefinite |  | 41,188,000 |  | 2036 to indefinite
Non-capital losses available for future periods – Canada |  | 22,862,000 |  | 2026 to 2043 |  | 21,739,000 |  | 2026 to 2041
Allowable capital losses |  | 13,463,000 |  | No expiry date |  | 13,178,000 |  | No expiry date
Property and equipment |  | 280,000 |  | No expiry date |  | 270,000 |  | No expiry date
Intangible assets |  | 9,747,000 |  | No expiry date |  | 2,962,000 |  | No expiry date
Exploration and evaluation assets |  | 5,446,000 |  | No expiry date |  | 5,446,000 |  | No expiry date
Share issuance costs |  | 2,715,000 |  | No expiry date |  | 2,922,000 |  | No expiry date
The Company is subject to taxation in the United States and various states along with other foreign countries. The Company has not been notified that it is under audit by the IRS or any state, however, due to the presence of NOL carryforwards, all the income tax years remain open for examination in each of these jurisdictions. There are no audits in any foreign jurisdictions. The Company does not believe that it is reasonably possible that the total amount of unrecognized tax benefits will significantly increase or decrease in the next 12 months. Deferred income taxes have not been provided for undistributed earnings of the Company’s consolidated foreign subsidiaries because of the Company’s intent to reinvest such earnings indefinitely in active foreign operations. Tax attributes are subject to review, and potential adjustment, by tax authorities. The Company files income tax returns with Canada, U.S. and state governments. With few exceptions, the Company is no longer subject to tax examinations by tax authorities for years before 2019.

X
- Definition The entire disclosure for income tax. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482685/740-10-50-12 Reference 2: http://www.xbrl.org/2003/role/exampleRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 231 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482663/740-10-55-231 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12C -Publisher FASB -URI https://asc.fasb.org/1943274/2147482685/740-10-50-12C Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12B -Publisher FASB -URI https://asc.fasb.org/1943274/2147482685/740-10-50-12B Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 270 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Publisher FASB -URI https://asc.fasb.org/1943274/2147477891/740-270-50-1 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 1 -Subparagraph (SAB Topic 6.I.5.Q1) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479360/740-10-S99-1 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Topic 946 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 13 -Publisher FASB -URI https://asc.fasb.org/1943274/2147480990/946-20-50-13 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Topic 235 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08(h)(2)) -Publisher FASB -URI https://asc.fasb.org/1943274/2147480678/235-10-S99-1 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/740/tableOfContent Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 14 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482685/740-10-50-14 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482685/740-10-50-21 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 17 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482685/740-10-50-17 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 2 -Subparagraph (SAB Topic 11.C) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479360/740-10-S99-2 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 30 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482603/740-30-50-2 + Details
Name: | us-gaap_IncomeTaxDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- References No definition available. + Details
Name: | us-gaap_IncomeTaxesPaidNetAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration