Note 22 - Income Taxes

12 Months Ended

Jul. 31, 2024

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,
	2024			2023			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	%		2.89	%		2.95	%
Total income tax provision rate		23.89	%		23.89	%		23.95	%

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,
	2024			2023			2022
Income (Loss) before income taxes	$	(34,255	)	$	(2,437	)	$	5,247
Corporate tax rate		23.89	%		23.89	%		23.95	%
Expected tax expense (recovery)		(8,184	)		(582	)		1,257
Increase (decrease) resulting from
Foreign tax rate differences		(151	)		(83	)		158
Permanent differences		4,155			1,486			(326	)
Prior year true-up		(81	)		(464	)		6
Change in state tax rate		77			(182	)		(460	)
Foreign exchange rate differences		(1,231	)		1,687			(4	)
Other		-			1,138			188
Change in valuation allowance		381			(2,130	)		(824	)
Deferred tax expense (recovery)	$	(5,034	)	$	870		$	(5	)

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, 2024, 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,
	2024			2023			2023
United States	$	(13,928	)	$	5,192		$	6,054
Canada		(19,468	)		(6,720	)		268
Paraguay		(859	)		(909	)		(1,075	)
	$	(34,255	)	$	(2,437	)	$	5,247

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

	July 31, 2024			July 31, 2023
Deferred tax assets (liabilities)
Mineral properties	$	2,107		$	2,191
Exploration costs		6,176			1,774
Stock option expense		2,448			3,628
Depreciable property		1,098			1,115
Inventories		334			(3,909	)
Asset retirement obligations		4,267			3,130
Investment in equity securities		(3,351	)		465
Equity accounted for investment		(4,190	)		(3,906	)
Other		(3,643	)		1,052
Section 163(j) interest expense carry forwards		3,307			4,160
Loss carry forwards		72,214			68,661
		80,767			78,361
Valuation allowance		(78,741	)		(78,361	)
Deferred tax assets		2,026			-
Deferred tax liabilities
Mineral properties		(66,373	)		(71,080	)
Net deferred tax liabilities	$	(64,347	)	$	(71,080	)

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

July 31, 2025	$	2,398
July 31, 2026		4,703
July 31, 2027		3,171
July 31, 2028		2,798
July 31, 2029		10,332
Between July 31, 2030 and 2037		155,228
No expiry		116,754
	$	295,384

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	$	133
July 31, 2028		456
July 31, 2029		557
July 31, 2030		553
July 31, 2031		759
Remaining balance		8,300
	$	10,758