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Income taxes
 12 Months Ended
Dec. 31, 2025
Income Tax Disclosure [Abstract]  
Income taxes

 

12. Income taxes:

 

As at December 31, 2022, Kidoz Inc. was domiciled in the tax-free jurisdiction of Anguilla, British West Indies. However certain of the Company’s subsidiaries incur income taxation. Effective January 1, 2023, the Company continued out of Anguilla and into Canada and became a Canadian tax payer.

 

The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities at December 31, 2025 and 2024, are presented below:

  

   2025   2024   2023 
Income (loss) for the year before tax   430,949    511,720    (2,038,034)
                
Expected tax expense (recovery)  $123,341   $138,164   $(550,269)
Change in statutory, foreign tax, foreign exchange rates and other   (158,538)   (184,459)   183,916 
Permanent differences   125,175    103,865    140,572 
Impact of SRED and ITC due to rate differences   (504,153)   -    - 
Adjustment to prior years provision versus statutory tax returns   (73,796)   (911)   (26,902)
Change in unrecognized deductible temporary differences   462,103    101,921    226,705 
Current income tax (recovery) expense  $(25,868)  $158,580   $(25,978)
Deferred income tax expense (recovery)   -    -    - 
Total income tax (recovery) expense  $(25,868)  $158,580   $(25,978)

 

 

Kidoz Inc. and subsidiaries

(Expressed in United States Dollars)

 

Notes to Consolidated Financial Statements

 

Years ended December 31, 2025, 2024 and 2023

 

 

12. Income taxes: (Continued)

 

The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities at December 31, 2025 and 2024 are presented below:

  

   2025   2024 
Deferred tax (liabilities) assets:          
Non-capital loss carry forwards  $249,290   $312,261 
Equipment   1,178    (1,066)
Intangible assets   (23,836)   (44,266)
Investment tax credit   480,853    - 
Other   185,352    176,752 
Deferred tax assets gross    892,837    443,681 
Unrecognized deferred tax assets   (892,837)   (443,681)
Total deferred tax (liability) asset  $-   $- 

 

As at December 31, 2025, the Company’s had $939,704 (2024 - $1,110,519) of non-capital losses expiring through December 31, 2045.

 

In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those differences become deductible.

 

Management considers the scheduled reversal of deferred tax liabilities, projected future taxable income, and tax planning strategies in assessing the realizability of deferred tax assets.

 

The Company recognized this tax credit as a recovery of income tax expense on the statement of operations and comprehensive (loss) income upon receipt of funds.