Annual report pursuant to Section 13 and 15(d)

INCOME TAX

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