Annual report pursuant to Section 13 and 15(d)

INCOME TAX

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INCOME TAX
12 Months Ended
Dec. 31, 2020
Income Tax Disclosure [Abstract]  
INCOME TAX INCOME TAX
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 $   $ — 
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
Loss before income taxes $ (36,675) (a) $ (45,980) (b)
Expected federal income tax recovery calculated at 27% (c)
(9,903) (12,415)
Effect of expenses that are not deductible (permanent differences) in determining taxable profit 1,457  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 $36,671 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.

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)
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 

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 (2019- $0) and there are no foreseeable changes for the twelve months following December 31, 2020. The Company did not record any expenses related to interest or penalties related to income taxes (2019 - $0). All years since the incorporation of the Company and its subsidiaries remain open to be audited by tax authorities.