Income Taxes

12 Months Ended

Dec. 31, 2024

Income Taxes

Income Taxes

10. Income Taxes

The Company’s U.S. and foreign source income/(loss) were:

	Years Ended December 31,
	2024		2023
U.S.	$	(64)	$	(154)
Canada		(14,764)		(3,097)
Other foreign, net		26,077		(3,334)
	$	11,249	$	(6,585)

During the years ended December 31, 2024 and 2023, the Company recognized $nil current and deferred income tax expense or benefit in each of the U.S., Canada, and other foreign jurisdictions, due to full valuation allowances within each jurisdiction.

Rate Reconciliation

Reconciliations between the Company’s combined income (loss) taxed at statutory rates and the income tax (benefit)/expense were:

	Years Ended December 31,
	2024		2023
Combined income taxed at statutory rates	$	2,363	$	(1,383)
Increase (decrease) in taxes from:
State Tax		9		5
Stock-based compensation		130		117
Meals and Entertainment		1		1
Imputed interest		71		60
Other adjustments		(366)		(7)
Expiring NOLs		—		137
Inflation adjustment		—		—
Prior year provision to actual adjustments		(313)		580
Change in U.S. tax rate		4		—
Differentials in foreign tax rates		1,464		(484)
Changes in foreign exchange rates		1,860		(77)
Changes in valuation allowances affecting income tax expense or benefit		(5,223)		1,051
Income tax (benefit)/expense	$	—	$	—

Deferred Taxes

Deferred income taxes reflect the net effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Components of the Company’s deferred tax assets and liabilities were:

	December 31,
	2024		2023
Deferred income tax assets
Excess tax basis over book basis of property, plant and equipment	$	6,924	$	7,225
Operating loss carryforwards		41,440		40,817
Capital loss carryforwards		14,954		14,394
Capital expenditures		366		366
Stock compensation		33		54
VAT recoverable		144		176
Unrealized foreign exchange gain/loss		6		7
Offering costs		104		157
Accrued vacation		24		22
Other		—		—
Total future tax assets		63,995		63,218
Valuation allowance for future tax assets		(57,995)		(63,218)
		6,000		—
Deferred income tax liabilities
Deferred proceeds for tax purposes from royalty transaction		6,000		—
Other investments		—		—
		6,000		—
Total deferred taxes, net	$	—	$	—

Valuation Allowance on Canadian and Foreign Tax Assets

We establish a valuation allowance against income tax assets if, based on available information, it is more likely than not that all of the assets will not be realized. The valuation allowances of $57,995 and $63,218 at December 31, 2024 and 2023, respectively, related mainly to operating loss carryforwards where utilization is not deemed to be more likely than not. The Company periodically assesses both positive and negative evidence to determine whether it is more likely than not that deferred tax assets can be realized prior to expiration.

Loss Carryforwards

The Company’s tax loss carryforwards expire as follows:

	Noncapital Canada		U.S.		Mexico		Barbados		Total
2025		—		—		79		6		85
2026		1,027		—		815		5		1,847
2027		847		—		—		7		854
2028		5,245		—		—		7		5,252
2029		4,022		—		—		2		4,024
2030		5,032		1,359		—		12		6,403
2031		3,806		3,407		71		7		7,291
2032		6,397		2,323		49		—		8,769
2033		6,185		3,098		46		—		9,329
2034		4,420		—		82		—		4,502
2035		3,729		2		—		—		3,731
2036		2,799		2,655		—		—		5,454
2037		1,916		2,482		—		—		4,398
2038		2,666		—		—		—		2,666
2039		3,338		—		—		—		3,338
2040		2,829		—		—		—		2,829
2041		3,195		—		—		—		3,195
2042		734		—		—		—		734
2043		2,905		—		—		—		2,905
2044		2,470		—		—		—		2,470
	$	63,562	$	15,326	$	1,142	$	46	$	80,076

U.S. loss carryforwards for tax years beginning in 2018 of $2,372, Canadian capital loss carryforwards of $110,770 and Australian net operating losses of $67,063, which do not expire, are not included in the previous table.

Tax Statute of Limitations

The Company files income tax returns in Canada, U.S. federal and state jurisdictions, and other foreign jurisdictions. There are currently no tax examinations underway for these jurisdictions. Furthermore, the Company is no longer subject to Canadian tax examinations by the Canadian Revenue Agency for years ended on or before December 31, 2020 or U.S. federal income tax examinations by the Internal Revenue Service for years ended on or before December 31, 2020. Some U.S. state and other foreign jurisdictions are still subject to tax examination for years ended on or before December 31, 2019.

Although certain tax years are closed under the statute of limitations, tax authorities can still adjust losses being carried forward to open years. See Note 8 for discussion of ongoing legal matters associated with an assessment by the SAT.