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Income Taxes

12 Months Ended

Dec. 31, 2022

Income Taxes

Income Taxes

The Company operates in both U.S. and Canadian tax jurisdictions. Its income is subject to varying rates of tax and losses incurred in one jurisdiction cannot be used to offset income taxes payable in another. A reconciliation of the combined Canadian federal and provincial income tax rate with the Company’s effective tax rate is as follows (in thousands except for percentage rates):

​	​	​	​	​	​	​	​
​	​	Year Ended		​	Year Ended
​	​	December 31,		​	December 31,
​		2022			2021
Domestic loss	​	$	(10,548)	​	$	(9,122)	​
Foreign loss	​		(13,117)	​		(8,173)	​
Loss before income taxes	​		(23,665)	​		(17,295)	​
​	​	​	​	​	​	​	​
Expected statutory rate	​		26.50	%		26.50	%
Expected provision for (recovery of) income tax	​		(6,271)	​		(4,583)	​
Permanent differences	​		1,170	​		993	​
Change in valuation allowance	​		4,669	​		3,086	​
Effect of foreign exchange rate differences	​		​	​		—	​
Effect of change in future enacted tax rates	​		​	​		—	​
Tax credits and other adjustments	​		​	​		—	​
Effect of tax rate changes and other	​		432	​		504	​
Provision for income taxes	​	$	—	​	$	—	​

​

The Canadian statutory income tax rate of 26.5 percent is comprised of federal income tax at approximately 15.0 percent and provincial income tax at approximately 11.5 percent.

The primary temporary differences which gave rise to future income taxes (recovery) at December 31, 2022 and December 31, 2021:

​	​	​	​	​	​	​
​	​	December 31,		​	December 31,
​		2022			2021
Future tax assets:		​	​		​	​
SR&ED expenditures	​	$	2,086	​	$	2,086
Income tax loss carryforwards	​		34,948	​		30,007
Non-refundable investment tax credits	​		421	​		700
Share issue costs	​		62	​		77
Fixed and intangible assets	​		1,083	​		1,083
Debt discount	​		22	​		—
​	​		38,622	​		33,953
Less: valuation allowance	​		(38,596)	​		(33,927)
Net future tax assets	​	$	26	​	$	26

​

10. Subsequent Events

Management has evaluated subsequent events through the date of this filing and concluded there are no events of significance which require disclosure.

Tax Cuts and Jobs Act

On December 22, 2017, the then President of the United States signed into law an Act to provide for reconciliation pursuant to titles II and V of the concurrent resolution on the budget for fiscal year 2018 (commonly known as “the Tax Cuts and Jobs Act” (“TCJA”)), which introduced a comprehensive set of tax reforms. The Tax Cuts and Jobs Act significantly revises U.S. tax law by, among other provisions, lowering the Company’s corporate tax rate from 34% to 21% and eliminating or reducing certain income tax deductions.

In December 2017, in accordance with the SEC Staff Accounting Bulletin (“SAB”) 118–Income Tax Accounting Implications of the TCJA, the Company recorded tax effects on a provisional basis based on a reasonable estimate. The TCJA did not have a material impact on the Company's financial statements because its deferred temporary differences are fully offset by a valuation allowance and the Company does not have any offshore earnings from which to record the mandatory transition tax. During 2018, the Company completed its analysis under SAB 118 and no additional tax effects due to rate-remeasurement were required to be recorded.

There are no current income taxes owed, nor are any income taxes expected to be owed in the near term. At December 31, 2022, the Company has unclaimed Scientific Research and Experimental Development ("SR&ED") expenditures, income

tax loss carry-forwards and non-refundable investment tax credits. The unclaimed amounts and their expiry dates are as listed below:

​	​	​	​	​	​	​
​		​	​		Province/
​	​	Federal		​	State
SR&ED expenditures (no expiry)	​	$	7,872	​	$	—
Income tax loss carryforwards (expiry date):	​		​	​		​
2023	​		1,588	​		—
2024	​		4,849	​		—
2025	​		6,143	​		—
2026	​		13,868	​		—
2027	​		8,136	​		—
2028	​		10,509	​		4,164
2029	​		8,185	​		2,116
2030	​		2,608	​		700
2031	​		3,378	​		789
2032	​		3,491	​		651
2033	​		1,789	​		655
2034	​		1,812	​		617
2035	​		1,804	​		941
2036	​		2,208	​		1,013
2037	​		4,641	​		1,638
2038	​		5,267	​		-
2039	​		5,848	​		-
2040	​		5,792	​		-
2041	​		5,340	​		-
2042	​		6,192	​		-
No expiration	​		35,974	​		24,580
Investment tax credits (expiry date):	​		​	​		​
2023	​		169	​		​
2024	​		189	​		​
2025	​		82	​		​
2026	​		86	​		​
2027	​		47	​		​

​

X

- References

No definition available.

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- Definition

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 21
-URI https://asc.fasb.org/extlink&oid=121826272&loc=d3e32857-109319

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section S99
-Paragraph 2
-Subparagraph (SAB Topic 11.C)
-URI https://asc.fasb.org/extlink&oid=122134291&loc=d3e330215-122817

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 17
-Subparagraph (b)
-URI https://asc.fasb.org/extlink&oid=121826272&loc=d3e32809-109319

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section S99
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-Subparagraph (SAB TOPIC 6.I.5.Q1)
-URI https://asc.fasb.org/extlink&oid=122134291&loc=d3e330036-122817

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
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-URI https://asc.fasb.org/extlink&oid=121826272&loc=d3e32705-109319

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 270
-Section 50
-Paragraph 1
-URI https://asc.fasb.org/extlink&oid=6424409&loc=d3e44925-109338

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-URI https://asc.fasb.org/topic&trid=2144680

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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-URI https://asc.fasb.org/extlink&oid=6424122&loc=d3e41874-109331

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
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-Section S99
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