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Income Taxes

12 Months Ended

Dec. 31, 2022

Dec. 31, 2021

17. Income Taxes

The components of income tax expense (benefit) are as follows:

Years ended December 31,	2022		2021
Current:	$	—	$	—
Kingdom of Lesotho		—		—
Republic of Malta		—		—
United Kingdom		—		—
	$	—	$	—

A reconciliation of the expected income tax recovery to the actual income tax recovery is as follows:

Deferred tax assets and liabilities have not been recognized for the following:

Years ended December 31,	2022			2021
Net loss before income taxes:	$	(11,657,674	)	$	(8,131,197	)
Statutory income tax rate		26.50	%		26.50	%

Income tax benefit		(3,089,284	)		(2,154,767	)
Non-deductible items		1,664,757			—
Non-taxable items		(3,420,469	)		—
Foreign rate differential		(323,877	)		1,227,150
Unrecognized loss carryforwards		5,168,873			1,089,449
	$	—		$	—

The Company has reconciled to the average statutory tax rate of the Kingdom of Lesotho (10%), the Republic of Malta (35%), the United Kingdom (19%), and the Republic of Portugal (21%).

Deferred tax assets

At December 31,	2022		2021
Net operating loss before carryforwards	$	—	$	—
Unrecognized loss carryforwards	$	—	$	—

Deferred tax assets have not been recognized in respect of unutilized tax losses carried forward because it is not probable that future taxable profit will be available against which the Company can use the benefits therefrom.

12. Income taxes

The components of income tax expense (benefit) are as follows:

Year ended December 31	2021		2020		2019
Current:
Kingdom of Lesotho	$	—	$	—	$	—
Republic of Malta		—		—		—
United Kingdom		—		—		—
	$	—	$	—	$	—

A reconciliation of the expected income tax recovery to the actual income tax recovery is as follows:

Deferred tax assets and liabilities have not been recognized for the following:

Year ended December 31	2021			2020			2019
Net loss before income taxes	$	(8,131,197	)	$	(2,300,571	)	$	(1,394,641	)
Statutory income tax rate		26.50	%		26.50	%		26.50	%

Income tax benefit		(2,154,767	)		(609,651	)		(369,580	)
Foreign rate differential		1,227,150			379,594			230,116
Unrecognized loss carryforwards		1,089,449			230,057			139,464
	$	—		$	—		$	—

The Company has reconciled to the average statutory tax rate of the Kingdom of Lesotho (10%), the Republic of Malta (35%) and the United Kingdom (19%).

Deferred tax assets

As at December 31	2021		2020
Net operating loss before carryforwards	$	—	$	—
Unrecognized loss carryforwards	$	—	$	—