Note 22 - Income Taxes

12 Months Ended

Jul. 31, 2023

Notes to Financial Statements

Income Tax Disclosure [Text Block]

NOTE 22: INCOME TAXES

A reconciliation of income tax computed at the federal and state statutory tax rates including the Company’s effective tax rate is as follows:

	Year Ended July 31,
	2023			2022			2022
Federal income tax provision rate		21.00	%		21.00	%		21.00	%
State income tax provision rate, net of federal income tax effect		2.89	%		2.95	%		0.83	%
Total income tax provision rate		23.89	%		23.95	%		21.83	%

The actual income tax provisions differ from the expected amounts calculated by applying the combined federal and state corporate income tax rates to our loss before income taxes.

The components of these differences are as follows:

	Year Ended July 31,
	2023			2022			2022
Income (Loss) before income taxes	$	(2,437	)	$	5,247		$	(14,817	)
Corporate tax rate		23.89	%		23.95	%		21.83	%
Expected tax expense (recovery)		(582	)		1,257			(3,235	)
Increase (decrease) resulting from
Foreign tax rate differences		(83	)		158			77
Permanent differences		1,486			(326	)		(217	)
Prior year true-up		(464	)		6			(270	)
Change in state tax rate		(182	)		(460	)		(406	)
Foreign exchange rate differences		1,687			(4	)		(56	)
Other		1,138			188			163
Change in valuation allowance		(2,130	)		(824	)		3,940
Deferred tax expense (recovery)	$	870		$	(5	)	$	(4	)

We have incurred taxable losses for all years since inception and, accordingly, no provision for current income tax has been recorded for the current or any prior fiscal years.

As at July 31, 2023, we re-evaluated the realizability of our tax loss carry-forwards and our conclusion that the realization of these tax loss carry-forwards is not likely to occur remains unchanged.  As a result, we will continue to record a full valuation allowance for the deferred tax assets relating to the remaining tax loss carry-forwards.

The components of income (loss) from operations before income taxes, by tax jurisdiction, are as follows:

	Year Ended July 31,
	2023			2022			2022
United States	$	5,192		$	6,054		$	(14,297	)
Canada		(6,720	)		268			94
Paraguay		(909	)		(1,075	)		(614	)
	$	(2,437	)	$	5,247		$	(14,817	)

The Company’s deferred tax assets (liabilities) are as follows:

	July 31, 2023			July 31, 2022
Deferred tax assets (liabilities)
Mineral properties	$	2,191		$	1,401
Exploration costs		1,774			1,875
Stock option expense		3,628			4,651
Depreciable property		1,115			1,078
Inventories		(3,909	)		(3,955	)
Asset retirement obligations		3,130			2,924
Other		(2,389	)		654
Section 163(j) interest expense carry forwards		4,160			2,040
Loss carry forwards		68,661			70,162
		78,361			80,830
Valuation allowance		(78,361	)		(80,830	)
Deferred tax assets		-			-
Deferred tax liabilities
Mineral properties		(71,080	)		(536	)
Net deferred tax liabilities	$	(71,080	)	$	(536	)

As the criteria for recognizing deferred tax assets have not been met due to the uncertainty of realization, a valuation allowance of 100% has been recorded for the current and prior years.

The Company’s U.S. net operating loss carry-forwards expire as follows:

July 31, 2024	$	2,519
July 31, 2025		4,831
July 31, 2026		8,461
July 31, 2027		6,907
July 31, 2028		11,777
Between July 31, 2009 and 2037		165,665
No expiry		90,364
	$	290,524

For U.S. federal income tax purposes, a change in ownership under IRC Section 382 has occurred as a result of the Company’s acquisitions in prior years. When an ownership change has occurred, the utilization of these losses against future income would be subject to an annual limitation, which would be equal to the value of the acquired company immediately prior to the change in ownership multiplied by the IRC Section 382 rate in effect during the month of the change.

The Company’s Canadian net operating loss carry-forwards in Canadian dollars expire as follows:

July 31, 2027	$	183
July 31, 2028		2,089
July 31, 2029		3,436
July 31, 2030		2,406
July 31, 2031		2,673
Remaining balance		35,161
	$	45,948