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Income Taxes (Tables)
12 Months Ended
Dec. 31, 2022
Income Tax Disclosure [Abstract]  
Summary of Loss Before Provision for Income Taxes

Loss before the provision for income taxes consisted of the following:

 

 

Year Ended December 31,

 

 

 

2022

 

 

2021

 

 

 

(in thousands)

 

Canada

 

$

(17,550

)

 

$

(110,433

)

Foreign

 

$

3,650

 

 

$

1,847

 

Loss before provision for income taxes

 

$

(13,900

)

 

$

(108,586

)

 

Summary of provision for income taxes

The components of the provision for income taxes are as follows:

 

 

Year Ended December 31,

 

 

 

2022

 

 

2021

 

 

 

(in thousands)

 

Current income tax provision - foreign

 

$

11,527

 

 

$

530

 

Deferred income tax benefit - foreign

 

 

3,620

 

 

 

(2,208

)

Total provision for income taxes

 

$

15,147

 

 

$

(1,678

)

Summary of Reconciliation of Provision for Income Taxes

A reconciliation between tax expense and the product of accounting income multiplied by the statutory income tax rate is as follows:

 

 

Year Ended December 31,

 

 

 

2022

 

 

2021

 

 

 

(in thousands)

 

Loss before income taxes

 

$

(13,900

)

 

$

(108,586

)

Income tax at statutory rate

 

 

26.5

%

 

 

26.5

%

Computed income tax recovery

 

 

(3,684

)

 

 

(28,775

)

Effect on income tax resulting from:

 

 

 

 

 

 

Federal investment tax credit

 

 

(4,899

)

 

 

(4,093

)

Accounting charges not deductible for tax purposes

 

 

679

 

 

 

1,078

 

Capital gain income

 

 

(13,956

)

 

 

 

Equity compensation

 

 

3,492

 

 

 

2,220

 

State taxes

 

 

(777

)

 

 

(37

)

Other

 

 

(142

)

 

 

644

 

Change in valuation allowance

 

 

34,434

 

 

 

27,285

 

Tax (benefit) expense

 

$

15,147

 

 

$

(1,678

)

Summary of Losses Expire The Company has not recognized the tax benefit of these losses. These losses expire as follows:

 

 

 

 

 

 

(in thousands)

 

2042

 

$

45,279

 

2041

 

 

93,834

 

2040

 

 

 

2039

 

 

11,394

 

2038

 

 

7,111

 

2037

 

 

883

 

Total

 

$

158,501

 

Summary of Investment Tax Credits Expire The Company has not recognized the tax benefits related to the non-refundable investment tax credits. The investment tax credits

 

 

(in thousands)

 

2042

 

$

2,392

 

2041

 

 

2,253

 

2040

 

 

1,702

 

2039

 

 

1,362

 

2038

 

 

776

 

2037

 

 

455

 

2036

 

 

24

 

Total

 

$

8,964

 

Summary of Deferred Tax Assets

The Company’s deferred tax assets as of December 31, 2022 and 2021 consisted of the following:

 

 

2022

 

 

2021

 

 

 

(in thousands)

 

Net operating loss carryforwards

 

$

42,003

 

 

$

30,093

 

Net research and development expenditures

 

 

14,468

 

 

 

10,656

 

Share issuance costs

 

 

2,369

 

 

 

3,538

 

Net federal investment tax credits

 

 

6,589

 

 

 

4,805

 

U.S. research and development tax credits

 

 

 

 

 

1,775

 

Tax basis of property and equipment in excess of carrying values

 

 

(376

)

 

 

 

Operating lease right-of-use assets

 

 

(1,429

)

 

 

(1,995

)

Operating lease liability

 

 

1,445

 

 

 

1,950

 

Accrued expense and other liabilities

 

 

785

 

 

 

760

 

Deferred revenue

 

 

14,783

 

 

 

13,656

 

Share-based compensation

 

 

2,492

 

 

 

988

 

R&D costs capitalized

 

 

13,911

 

 

 

 

Total deferred tax assets

 

 

97,040

 

 

 

66,226

 

Valuation allowance

 

 

(97,040

)

 

 

(62,606

)

Net deferred tax assets

 

$

 

 

$

3,620