| INCOME TAXES |
|
a) |
Provision for Income Taxes |
A reconciliation of income taxes at
statutory rates with the reported taxes is as follows:
| |
|
2021 |
|
|
2020 |
|
|
2019 |
|
| |
|
($) |
|
|
($) |
|
|
($) |
|
| Loss for the year |
|
|
(17,847,892 |
) |
|
|
(6,911,040 |
) |
|
|
(7,256,326 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
| Expected income tax (recovery) |
|
|
(4,819,000 |
) |
|
|
(1,866,000 |
) |
|
|
(1,959,000 |
) |
| Change in statutory, foreign tax, foreign exchange rates and other |
|
|
294,000 |
|
|
|
275,000 |
|
|
|
398,000 |
|
| Permanent differences |
|
|
1,107,000 |
|
|
|
403,000 |
|
|
|
260,000 |
|
| Share issue costs |
|
|
432,000 |
|
|
|
- |
|
|
|
(116,000 |
) |
| Adjustment to prior years provision versus statutory tax returns |
|
|
- |
|
|
|
(35,000 |
) |
|
|
3,133,000 |
|
| Change in unrecognized deductible temporary differences |
|
|
2,986,000 |
|
|
|
1,223,000 |
|
|
|
(1,716,000 |
) |
| Income tax expense |
|
|
- |
|
|
|
- |
|
|
|
- |
|
The significant components of the Company’s
deferred tax assets that have not been included on the consolidated statement of financial position are as follows:
| |
|
2021 |
|
|
2020 |
|
|
2019 |
|
| |
|
($) |
|
|
($) |
|
|
($) |
|
| Non-capital losses carry-forward |
|
|
11,751,000 |
|
|
|
7,841,000 |
|
|
|
6,824,000 |
|
| Exploration and evaluation assets |
|
|
1,470,000 |
|
|
|
1,470,000 |
|
|
|
1,477,000 |
|
| Share issuance costs |
|
|
735,000 |
|
|
|
109,000 |
|
|
|
154,000 |
|
| Debt with accretion |
|
|
(70,000 |
) |
|
|
(70,000 |
) |
|
|
(98,000 |
) |
| Intangible assets |
|
|
179,000 |
|
|
|
1,336,000 |
|
|
|
1,236,000 |
|
| Other deferreds |
|
|
37,000 |
|
|
|
- |
|
|
|
- |
|
| Allowable capital losses |
|
|
3,801,000 |
|
|
|
3,592,000 |
|
|
|
3,579,000 |
|
| Property and equipment |
|
|
35,000 |
|
|
|
64,000 |
|
|
|
59,000 |
|
| |
|
|
17,938,000 |
|
|
|
14,342,000 |
|
|
|
13,231,000 |
|
| Unrecognized deferred tax assets |
|
|
(17,938,000 |
) |
|
|
(14,342,000 |
) |
|
|
(13,231,000 |
) |
The significant components of the Company’s
temporary differences, unused tax credits and unused tax losses that have not been included on the consolidated statement of financial
position are as follows:
| Temporary Differences |
|
2021 |
|
|
Expiry Date Range |
|
2020 |
|
|
Expiry Date Range |
| |
|
($) |
|
|
|
|
($) |
|
|
|
| Non-capital losses available for future periods - US |
|
|
29,390,000 |
|
|
2036 to indefinite |
|
|
14,880,000 |
|
|
2036 to indefinite |
| Non-capital losses available for future periods - Canada |
|
|
20,664,000 |
|
|
2026 to 2040 |
|
|
17,215,000 |
|
|
2026 to 2039 |
| Allowable capital losses |
|
|
14,077,000 |
|
|
No expiry date |
|
|
13,304,000 |
|
|
No expiry date |
| Property and equipment |
|
|
128,000 |
|
|
No expiry date |
|
|
273,000 |
|
|
No expiry date |
| Intangible asset |
|
|
853,000 |
|
|
No expiry date |
|
|
6,364,000 |
|
|
No expiry date |
| Exploration and evaluation assets |
|
|
5,446,000 |
|
|
No expiry date |
|
|
5,446,000 |
|
|
No expiry date |
| Share issuance costs |
|
|
2,724,000 |
|
|
2040 to 2044 |
|
|
401,000 |
|
|
2040 to 2043 |
Tax attributes are subject to review,
and potential adjustment, by tax authorities.
|