INCOME TAX (Tables)
|
12 Months Ended |
Dec. 31, 2022 |
Income Tax Disclosure [Abstract] |
|
Schedule of Components of Income Tax Expense (Recovery) |
Income tax recognized in the statement of operations:
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Year ended |
|
December 31, 2022 |
|
December 31, 2021 |
Current tax |
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|
|
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
|
|
|
Schedule of Effective Income Tax Rate Reconciliation |
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:
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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.
|
Schedule of Deferred Tax Assets and Liabilities |
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:
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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) |
|
|
Summary of Operating Loss Carryforwards |
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:
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Canada |
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United States |
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Colombia |
|
United Kingdom |
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Portugal |
|
Germany |
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Total |
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|
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|
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
|
|
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