Income Taxes

9 Months Ended

Dec. 31, 2023

Income Taxes [Abstract]

Income Taxes

19. Income Taxes  

The majority of our revenues from international Marine sales are invoiced from and collected by our U.S. entity and recognized as a component of income before taxes in the United States as opposed to a foreign jurisdiction. BESS revenues are invoiced and collected by our U.K. entities. The components of income before income taxes by U.S. and foreign jurisdictions were as follows:

	December 31, 2023 $			December 31, 2022 $
United States		(10,875,742	)		(4,205,331	)
Foreign		23,513,169			(3,499,784	)
Net profit / (loss) before taxes		12,637,428			(7,705,115	)

The following table reconciles the income tax expense (benefit) at the statutory rates to the income tax (benefit) at the Company’s effective tax rate.

	December 31, 2023 $			December 31 2022 $
Net profit / (loss) before taxes		12,637,428			(7,705,115	)
Statutory tax rate		21	%		21	%
Expected income tax expense / (recovery)		2,653,860			(1,618,074	)
Tax exemption on share sale		(7,905,011	)		–
Subpart F inclusion		6,027,488			–
Permanent differences and other		2,451,576			151,871
Foreign tax rate difference		(73,458	)		6,686
Change in valuation allowance		(1,988,816	)		1,459,517
Income tax provision		1,165,639			–
Current		1,165,639			–
Deferred		–			–
Income tax provision		1,165,639			–

At December 31, 2023, the Company is current with statutory corporate income tax filings. Certain of the amounts presented above are based on estimates and what management believes are prudent filing positions. The actual losses available could differ from these estimates upon assessment and review by taxation authorities. U.S. federal and state income tax returns filed by us remain subject to examination for income tax years 2014 and subsequent. Canadian federal and provincial income tax returns filed by us remain subject to examination for income tax years 2019 and subsequent. Income tax returns associated with our operations located in the United Kingdom and China are subject to examination for income tax years 2018 and subsequent.

Tax positions are evaluated for recognition using a more-likely than-not recognition threshold, and those tax positions eligible for recognition are measured as the largest amount of tax benefit that is greater than 50% likely of being realized upon the effective settlement with a taxing authority that has full knowledge of all relevant information. 

The Company estimates that it has brought forward accumulated estimated net operating losses of approximately $25.3 million which were incurred mainly in the U.S, and which don’t begin to expire until 2033. Historical losses in the U.S., are subject to limitations on use due to deemed changes in control for tax purposes. This impacts the timing and opportunity to use certain losses. In arriving at the tax liability for the current period, a total of $24.8 million of historical net operating losses were offset, leaving $0.5 million carried forward into future reporting periods. In addition, the Company estimates that it has approximately $12.7 million in losses available in the United Kingdom.