Income Taxes

12 Months Ended

Dec. 31, 2021

Income Tax Disclosure [Abstract]

Income Taxes

8.Income Taxes​​

As at December 31, 2021 and 2020, the Company had no accrued interest and penalties related to uncertain tax positions. Reconciliation of the statutory tax rate of 21% (2020 - 21%) and income tax benefits at those rates to the effective income tax rates and income tax benefits reported in the statements of operations and comprehensive loss is as follows:

Income tax rate		21.0%			21.0%
	For the Years Ended December 31,
	2021			2020
Loss before income tax	$	(1,000,689	)	$	(860,557	)
Expected income tax recovery		(210,145	)		(180,717	)
Unrealized foreign exchange		147			(1,401	)
Other permanent difference		5,043			3,921
Stock-based compensation		24,444			42,000
Change in valuation allowance		180,511			136,197
Income tax expense	$	-		$	-

58

Joshua Gold Resources Inc.

(An Exploration Stage Company)

Notes to Financial Statements

For the year ended December 31, 2021

 

The following table summarizes the significant components of deferred tax:

	For the Years Ended December 31,
	2021		2020
Deferred tax asset:
Net operating loss carry forward	$	6,626,368	$	6,056,895
Exploration and development costs		3,555693		3,265,590
Valuation allowance	$	(10,182,061)	$	(9,322,485)

The Company has net operating loss carryovers of approximately $6.6 million for federal and state income tax purposes, which begin to expire in 2029. The ultimate realization of the net operating loss is dependent upon future taxable income, if any, of the Company. Based on losses from inception, the Company determined that as of December 31, 2021 it is more likely than not that the Company will not realize benefits from the deferred tax assets. The Company will not record income tax benefits in the financial statements until it is determined that it is more likely than not that the Company will generate sufficient taxable income to realize the deferred income tax assets. As a result of the analysis, the Company determined that a valuation allowance against the deferred tax assets was required.

The tax years that remain subject to examination by major taxing jurisdictions are those for the years ended December 31, 2021, 2020, 2019, 2018, 2017, 2016, 2015, 2014, 2013, 2012, 2011 and 2010.