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

Income Tax

v3.22.1
Income Tax
 12 Months Ended
Dec. 31, 2021
Income Tax Disclosure [Abstract]  
INCOME TAX

18. INCOME TAX

Income tax recognized in the statement of operations:

 

Year ended
   

December 31, 2021

  

December 31, 2020

Current tax

  

 

    

 

  

Current tax expense in respect of the current year

  

$

—

  

$

—
   

 

    

 

  

Deferred tax

  

 

    

 

  

Deferred tax expense (recovery) in the current year

  

 

950

  

 

—

Total income tax expense recognized in the current year

  

$

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% (2020 – 27%) of pre-tax loss as a result of the following:

 

Year ended
   

December 31,
2021

  

December 31,
2020

Net loss before income tax

  

$

(44,681

)

  

$

(25,891

)

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

  

 

(12,064

)

  

 

(6,992

)

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

  

 

3,493

 

  

 

(1,454

)

Tax rates differences applicable to foreign subsidiaries

  

 

(708

)

  

 

(143

)

Adjustments related to prior years

  

 

0

 

  

 

958

 

Change valuation allowance

  

 

7,988

 

  

 

8,009

 

Foreign exchange

  

 

1,226

 

  

 

(378

)

Changes in tax rates

  

 

950

 

  

 

—

 

Other

  

 

65

 

  

 

—

 

Income tax expense

  

$

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,
2021

  

December 31,
2020

Deferred tax asset (liability)

  

 

  

 

  

 

  

 

Non-capital losses carry forward

  

$

24,139

 

  

$

18,436

 

Capital losses carryforward

  

 

98

 

  

 

98

 

Other

  

 

3,765

 

  

 

1,697

 

Property, plant and equipment

  

 

595

 

  

 

279

 

Intangibles

  

 

581

 

  

 

441

 

Deferred tax assets

  

$

29,178

 

  

$

20,951

 

Valuation allowance

  

 

(28,513

)

  

 

(20,525

)

Intangible assets

  

 

(6,650

)

  

 

(5,700

)

Other

  

 

(665

)

  

 

(426

)

Net deferred tax liability

  

$

(6,650

)

  

$

(5,700

)

As at December 31, 2021, 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

  

 

—

  

 

1,909

  

 

—

  

$

14,304

2032

  

 

—

  

 

—

  

 

6,135

  

 

—

  

 

4,088

  

 

—

  

$

10,223

2033

  

 

—

  

 

—

  

 

7,591

  

 

—

  

 

4,159

  

 

—

  

$

11,750

2037

  

 

—

  

 

641

  

 

—

  

 

—

  

 

—

  

 

—

  

$

641

2038

  

 

117

  

 

—

  

 

—

  

 

—

  

 

—

  

 

—

  

$

117

2039

  

 

1,058

  

 

—

  

 

—

  

 

—

  

 

—

  

 

—

  

$

1,058

2040

  

 

11,605

  

 

—

  

 

—

  

 

—

  

 

—

  

 

—

  

$

11,605

2041

  

 

9,297

  

 

—

  

 

—

  

 

—

  

 

—

  

 

—

  

$

9,297

Indefinite

  

 

—

  

 

13,520

  

 

—

  

 

—

  

 

—

  

 

9,103

  

$

22,623

Total

  

$

22,077

  

$

14,161

  

$

28,810

  

$

—

  

$

10,156

  

$

9,103

  

$

84,307

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 during calendar year December 31, 2021 and 2020. The Company did not record any expenses related to interest or penalties related to income taxes during calendar year December 31, 2021 and 2020. All years since the incorporation of the Company and its subsidiaries remain open to be audited by tax authorities.