Clever Leaves Annual report pursuant to Section 13 and 15(d)

Annual report pursuant to Section 13 and 15(d)

INCOME TAX (Tables)

INCOME TAX (Tables)

12 Months Ended

Dec. 31, 2020

Schedule of Components of Income Tax Expense (Recovery)

Income tax recognized in the statement of operations:


	2020		2019
Current tax
Current tax expense in respect of the current year	$	—	$	—

Deferred tax
Deferred tax expense (recovery) in the current year	—		—
Total income tax expense recognized in the current year	$	—	$	—

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% (2019 — 27%) of pre-tax loss as a result of the following:


	2020			2019
	(Restated) (d)
Loss before income taxes	$	(25,895)	(a)	$	(45,980)	(b)
Expected federal income tax recovery calculated at 27% (c)	(6,992)			(12,415)
Effect of income/expenses, net, that are not (taxable)/deductible (permanent differences) in determining taxable profit	(1,454)			2,019
Tax rates differences applicable to foreign subsidiaries	(143)			(632)

Adjustments related to prior years	958			—
Change valuation allowance	8,009			10,150
Foreign exchange	(378)			878

Income tax expense	$	—		$	—

(a)Loss before income taxes of $25,891 plus loss from equity investment of $4.

(b)Loss before income taxes of $45,884 plus loss from equity investment of $96.

(c)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.

(d)Following the SEC statement in April 2021, the Company determined that the private warrants should be classified as a liability. Refer to Note 3. for more information and the impact on the Company's financial statements.

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:


	2020		2019

Deferred tax asset (liability)
Non-capital losses carry forward	$	18,436	$	11,909
Capital losses carryforward	98		—
Other	1,697		1,567

Property, plant and equipment	279		—
Intangibles	441		—
Deferred tax assets	$	20,951	$	13,476
Valuation allowance	(20,525)		(12,515)
Intangible assets	(5,700)		(5,713)
Other	(426)		(948)
Net deferred tax liability	$	(5,700)	$	(5,700)

Summary of Operating Loss Carryforwards

As at December 31, 2020, 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

2030	$	—	$	—	$	3,176	$	—	$	—	$	—
2031					14,635				2,150
2032					7,048				5,157
2037	75		641		—
2038	323		—		—
2039	3,914
2040	11,519
Indefinite	—		11,963		—		1,761				7,824
Total	$	15,831	$	12,604	$	24,859	$	1,761	$	7,307	$	7,824