INCOME TAXES

12 Months Ended

Sep. 30, 2022

INCOME TAXES

INCOME TAXES

11.    INCOME TAXES

The following is a reconciliation of income taxes calculated at the combined Canadian federal and provincial income statutory corporate tax rate of 27.0% (2021 – 27.0%) to the tax expense:

For the years ended September 30	2022		2021
Loss for the year before income tax	$	(35,215,072)	$	(36,839,810)
Tax recovery at statutory income tax rates	$	(9,509,000)	$	(9,947,000)
Non-deductible share-based payments		963,000		1,575,000
Taxable capital gains
Other permanent differences including foreign exchange		(25,000)		(49,000)
Share issue costs		—		(2,492,000)
Change in statutory, foreign tax, foreign exchange rates and other		1,288,000		1,260,000
Adjustment to prior years provision versus statutory tax returns and expiry of non-capital losses		165,000		(725,000)
Change in valuation allowance		7,007,000		10,344,000
Total income tax expense	$	(111,000)	$	(34,000)

Tax attributes are subject to review, and potential adjustment, by tax authorities. The Company has recorded an income tax recovery of $111,000 for the year ended September 30, 2022 (2021 recovery of $34,000) in relation to taxable income generated by its US subsidiary.

For the years ended September 30, 2022 and 2021, the Company did not record a provision for income taxes due to a full valuation allowance against our deferred tax assets. The significant components of the Company’s deferred tax assets that have not been included on the consolidated statement of financial position are as follows:

Deferred tax assets	2022		2021
Operating losses carried forward	$	37,710,000	$	29,749,000
Equipment and intangible assets		77,000		77,000
Investment tax credits		29,000		29,000
Financing costs		2,026,000		3,025,000
Federal R&D credit		210,000		210,000
Other		125,000		79,000
		40,177,000		33,169,000
Valuation allowance		(40,177,000)		(33,169,000)
Net future tax assets	$	—	$	—

As at September 30, 2022, the Company has non-capital loss carry-forwards of approximately $87,702,000 (2021 - $78,416,000) available to offset future taxable income in Canada and approximately $66,812,000 (2021 - $40,843,000) available to offset future taxable income in the US. These non-capital loss carryforwards begin to expire in 2031.