Annual and transition report of foreign private issuers pursuant to Section 13 or 15(d)

Income Taxes

v3.23.1
Income Taxes
12 Months Ended
Dec. 31, 2022
Income Taxes [Abstract]  
INCOME TAXES
20. INCOME TAXES

 

  a) Provision for Income Taxes

 

A reconciliation of income taxes at statutory rates with the reported taxes is as follows:

 

    2022     2021     2020  
    ($)     ($)     ($)  
Loss for the year     (21,762,333 )     (17,847,892 )     (6,911,040 )
                         
Expected income tax (recovery)     (5,876,000 )     (4,819,000 )     (1,866,000 )
Change in statutory, foreign tax, foreign exchange rates and other     (12,000 )     294,000       275,000  
Permanent differences     1,875,000       1,107,000       403,000  
Share issue costs     370,000       432,000      
-
 
Adjustment to prior years provision versus statutory tax returns    
-
     
-
      (35,000 )
Change in unrecognized deductible temporary differences     3,643,000       2,986,000       1,223,000  
Income tax expense    
-
     
-
     
-
 

 

  b) Deferred Income Taxes

 

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:

 

    2022     2021     2020  
    ($)     ($)     ($)  
Non-capital losses carry-forward     14,519,000       11,751,000       7,841,000  
Exploration and evaluation assets     1,470,000       1,470,000       1,470,000  
Share issuance costs     789,000       735,000       109,000  
Debt with accretion    
-
      (70,000 )     (70,000 )
Intangible assets     622,000       179,000       1,336,000  
Other deferreds     12,000       37,000      
-
 
Allowable capital losses     3,558,000       3,801,000       3,592,000  
Property and equipment     76,000       35,000       64,000  
      21,046,000       17,938,000       14,342,000  
Unrecognized deferred tax assets     (21,046,000 )     (17,938,000 )     (14,342,000 )

 

  b) Deferred Income Taxes

 

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   2022     Expiry Date Range   2021     Expiry Date Range
    ($)         ($)      
Non-capital losses available for future periods - US     41,188,000     2036 to indefinite     29,390,000     2036 to indefinite
Non-capital losses available for future periods - Canada     21,739,000     2026 to 2042     20,664,000     2026 to 2041
Allowable capital losses     13,178,000      No expiry date     14,077,000     No expiry date
Property and equipment     270,000      No expiry date     128,000     No expiry date
Intangible assets     2,962,000      No expiry date     853,000     No expiry date
Exploration and evaluation assets     5,446,000     No expiry date     5,446,000     No expiry date
Share issuance costs     2,922,000     No expiry date     2,724,000     No expiry date

 

Tax attributes are subject to review, and potential adjustment, by tax authorities.