Annual report pursuant to Section 13 and 15(d)

INCOME TAX

v3.24.1
INCOME TAX
 12 Months Ended
Dec. 31, 2023
Income Tax Disclosure [Abstract]  
INCOME TAX INCOME TAX
Income tax recognized in the statement of operations:
Year ended
December 31,
2023		 December 31,
2022
Current tax
Current tax expense in respect of the current year $ 68  $ 296 
Deferred tax
Deferred tax expense (recovery) in the current year —  (6,650)
Total income tax expense recognized in the current year $ 68  $ (6,354)
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% (2022 — 27%) of pre-tax loss as a result of the following:
Year ended
December 31,
2023		 December 31,
2022
Net loss before income tax $ (19,729) (44,094)
Expected federal income tax recovery calculated at 27% (a)
(5,327) (11,905)
Effect of income/expenses, net, that are not (taxable)/deductible (permanent differences) in determining taxable profit 800  527 
Tax rates differences applicable to foreign subsidiaries 929  (1,070)
Loss related to loan conversion (319)
Change valuation allowance 4,065  7,961 
Foreign exchange (248) — 
Changes in tax rates —  — 
Intangible asset impairment - effect of tax rate difference —  (1,520)
Other (151) (28)
Income tax expense $ 68  $ (6,354)
(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,
2023		 December 31,
2022
Deferred tax asset (liability)
Non-capital losses carry forward $ 42,510  $ 37,212 
Capital losses carryforward 796  3,198 
Other 4,876  4,222 
Property, plant and equipment 1,067  978 
Intangibles 504  625 
Deferred tax assets $ 49,753  $ 46,235 
Valuation allowance (45,988) (42,338)
Intangible assets —  — 
Investments —  (600)
Other (3,765) (197)
Net deferred tax liability $ —  $ 3,100 
As at December 31, 2023, 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  —  1,853  —  $ 14,248 
2032 —  —  6,135  —  3,969  —  $ 10,104 
2033 —  —  7,591  —  4,037  —  $ 11,628 
2034 —  —  25,247  —  8,001  —  $ 33,248 
2035 —  —  7,364  —  7,866  —  $ 15,230 
2037 —  641  —  —  —  —  $ 641 
2038 —  —  —  —  —  —  $ — 
2039 502  —  —  —  —  —  $ 502 
2040 11,066  —  —  —  —  —  $ 11,066 
2041 8,869  —  —  —  —  —  $ 8,869 
2042 7,248  —  —  —  —  —  $ 7,248 
2043 4,669  —  —  —  —  —  $ 4,669 
Indefinite —  14,648  —  319  —  12,868  $ 27,835 
Total $ 32,354  $ 15,289  $ 61,421  $ 319  $ 25,726  $ 12,868  $ 147,977 
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, 2023 and there are no foreseeable changes for the 12 months following December 31, 2023. In the current year, the Company recorded $14.5 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.