Post-effective amendment to a registration statement that is not immediately effective upon filing

Income Tax

v3.23.1
Income Tax
 12 Months Ended
Dec. 31, 2022
Income Tax Disclosure [Abstract]  
INCOME TAX

17.    INCOME TAX

Income tax recognized in the statement of operations:

 

Year ended

December 31,
2022

  

December 31,
2021

Current tax

  

 

  

 

  

 

  

Current tax expense in respect of the current year

  

$

296

 

  

$

—
   

 

  

 

  

 

  

Deferred tax

  

 

  

 

  

 

  

Deferred tax expense (recovery) in the current year

  

 

(6,650

)

  

 

950

Total income tax expense recognized in the current year

  

$

(6,354

)

  

$

950

The reconciliation of income tax expense attributable to loss before income taxes differs from the amounts computed by applying the combined federal and provincial combined tax rate of 27% (2021 — 27%) of pre-tax loss as a result of the following:

 

Year ended
   

December 31,
2022

  

December 31,
2021

Net loss before income tax

  

$

(72,455

)

  

$

(44,681

)

Expected federal income tax recovery calculated at 27%(a)

  

 

(19,563

)

  

 

(12,064

)

Effect of income/expenses, net, that are not (taxable)/deductible (permanent differences) in determining taxable profit

  

 

591

 

  

 

3,493

 

Tax rates differences applicable to foreign subsidiaries

  

 

616

 

  

 

(708

)

Loss related to loan conversion

  

 

(319

)

  

 

—

 

Change valuation allowance

  

 

13,825

 

  

 

7,988

 

Foreign exchange

  

 

—

 

  

 

1,226

 

Changes in tax rates

  

 

—

 

  

 

950

 

Intangible asset impairment – effect of tax rate difference

  

 

(1,520

)

  

 

—

 

Other

  

 

16

 

  

 

65

 

Income tax expense

  

$

(6,354

)

  

$

950

 

____________

(a)      Due to the substantial alignment of the taxable income base between Canada and its provinces, the combined federal and provincial rate has been used as the reconciliation rate.

The following net deferred tax assets are not recognized in the consolidated financial statements due to the unpredictability of future income as of the periods presented:

 

Year ended

December 31,
2022

  

December 31,
2021

Deferred tax asset (liability)

  

 

  

 

  

 

  

 

Non-capital losses carry forward

  

$

36,794

 

  

$

24,139

 

Capital losses carryforward

  

 

516

 

  

 

98

 

Other

  

 

4,222

 

  

 

3,765

 

Property, plant and equipment

  

 

978

 

  

 

595

 

Intangibles

  

 

625

 

  

 

581

 

Deferred tax assets

  

$

43,135

 

  

$

29,178

 

Valuation allowance

  

 

(42,338

)

  

 

(28,513

)

Intangible assets

  

 

—

 

  

 

(6,650

)

Investments

  

 

(600

)

  

 

—

 

Other

  

 

(197

)

  

 

(665

)

Net deferred tax liability

  

$

—

 

  

$

(6,650

)

As at December 31, 2022, the Company has operating losses, which may be carried forward to apply against future year’s income tax for income tax purposes, subject to final determination by taxation authorities and expiring as follows:

 

Canada

  

United 
States

  

Colombia

  

United
Kingdom

  

Portugal

  

Germany

  

Total

2030

  

$

—

  

$

—

  

$

2,689

  

$

—

  

$

—

  

$

—

  

$

2,689

2031

  

 

—

  

 

—

  

 

12,395

  

 

—

  

 

1,802

  

 

—

  

$

14,197

2032

  

 

—

  

 

—

  

 

6,135

  

 

—

  

 

3,859

  

 

—

  

$

9,994

2033

  

 

—

  

 

—

  

 

7,591

  

 

—

  

 

3,925

  

 

—

  

$

11,516

2034

  

 

—

  

 

—

  

 

25,247

  

 

—

  

 

7,778

  

 

—

  

$

33,025

2037

  

 

—

  

 

641

  

 

—

  

 

—

  

 

—

  

 

—

  

$

641

2038

  

 

—

  

 

—

  

 

—

  

 

—

  

 

—

  

 

—

  

$

—

2039

  

 

479

  

 

—

  

 

—

  

 

—

  

 

—

  

 

—

  

$

479

2040

  

 

10,824

  

 

—

  

 

—

  

 

—

  

 

—

  

 

—

  

$

10,824

2041

  

 

8,675

  

 

—

  

 

—

  

 

—

  

 

—

  

 

—

  

$

8,675

2042

  

 

7,090

  

 

—

  

 

—

  

 

—

  

 

—

  

 

—

  

$

7,090

Indefinite

  

 

—

  

 

15,692

  

 

—

  

 

49

  

 

—

  

 

10,350

  

$

26,091

Total

  

$

27,068

  

$

16,333

  

$

54,057

  

$

49

  

$

17,364

  

$

10,350

  

$

125,221

Should all of the deferred tax assets be recognized as an asset in the future, approximately $390 of the benefit would be credited to share capital. Due to the losses sustained by the Company in the current and prior periods, no amount of deferred tax related to investments in subsidiaries has been recognized.

Uncertain Tax Benefits

The Company has recorded no provisions for, or reserved amounts related to unrecognized deferred tax assets in respect of, uncertain tax benefits for the year ended December 31, 2022 and 2021, and there are no foreseeable changes for the 12 months following December 31, 2022. During the years ended December 31, 2022 and 2021, the Company recorded $109 and $44, respectively of interest or penalties related to Canadian foreign reporting late filing penalties. All years since the incorporation of the Company and its subsidiaries remain open to be audited by tax authorities.