Income Taxes

12 Months Ended

Dec. 31, 2025

Major components of tax expense (income) [abstract]

Income Taxes

Note 13 - Income Taxes

Income tax expense differs from the amount that would result from applying corporate income tax rates to earnings before income taxes. The differences result from the following items during the years ended December 31, 2025 and 2024:

	For the year ended December 31,
	2025		2024
Net income before taxes	$	6,280	$	1,009
Statutory tax rate (%)	27		27
Expected income tax	$	1,696	$	272
Difference between parent and foreign tax rates	347		(55)
Withholding taxes	2,779		1,260
Share-based compensation	658		375
Share of profit of associate	(627)		(646)
Other permanent differences	1,766		753
Change in unrecognized deferred tax assets	(2,111)		(704)
Other adjustments	-		66
Total income tax expense	$	4,508	$	1,321

	For the year ended December 31,
	2025		2024
Current tax expense	$	4,924	$	1,336
Deferred tax recovery	(416)		(15)
Total income tax expense	$	4,508	$	1,321

Note 13 - Income Taxes (continued)

The tax effects of temporary differences between amounts recorded in the Company's accounts and the corresponding amounts as computed for income tax purposes gives rise to deferred tax liabilities as follows:

	As at December 31,
	2025		2024
Deferred Tax Liabilities
Royalty interests	$	(116,173)	$	(1,365)
Investment in associate	(249)		(603)
	(116,422)		(1,968)
Deferred Tax Assets
Losses	3,833		115
Other	36		106
Net deferred tax liability	$	(112,553)	$	(1,747)

Deferred tax assets have not been recognized in respect of the following deductible temporary differences:

	As at December 31,
	2025		2024
Losses	$	27,355	$	29,163
Deductible temporary differences	3,390		2,893
	$	30,745	$	32,056

The Company has Canadian tax losses of $27.4 million available to offset future taxable income. The losses expire in 2040 and 2044. The Company has Australian tax losses of $1.2 million available to offset future taxable income that do not expire. Tax attributes are subject to review and potential adjustments by tax authorities.