15. Taxes
The Company is subject to corporate income taxes and other provincial and federal mining and sales taxes. There is a $65,000 receivables amount reported on the Statement of Financial Position of the Company comprised of taxes receivable from the Canadian tax authorities (federal GST credits). Although the Company has been successful in the past with applications for these credits, there is a risk that the tax claims may be denied or reduced by the tax authorities. As of December 31, 2025, the Company has a deferred tax liability of $2.3 million, resulting mainly from timing difference between the accounting and tax values of the mineral properties expenditures.
Income taxes
A reconciliation of income taxes at statutory rates with the reported taxes is as follows:
| |
|
2025 |
|
|
2024 |
|
|
2023 |
|
| Loss for the year |
$ |
(1,611 |
) |
$ |
(1,125 |
) |
$ |
(3,097 |
) |
| Expected income tax (recovery) |
$ |
(435 |
) |
$ |
(304 |
) |
$ |
(836 |
) |
| Change in statutory, foreign tax, foreign exchange rates and other |
|
(90 |
) |
|
131 |
|
|
(178 |
) |
| Permanent difference |
|
136 |
|
|
105 |
|
|
146 |
|
| Share issue cost |
|
(11 |
) |
|
(7 |
) |
|
(3 |
) |
| Adjustment to prior years provision versus statutory tax returns |
|
1,006 |
|
|
(140 |
) |
|
476 |
|
| Change in unrecognized deductible temporary differences |
|
377 |
|
|
215 |
|
|
395 |
|
| Total income tax expense (recovery) |
$ |
983 |
|
$ |
- |
|
$ |
- |
|
| |
|
|
|
|
|
|
|
|
|
| Current income tax |
$ |
- |
|
$ |
- |
|
|
|
|
| Deferred tax expense |
$ |
983 |
|
$ |
- |
|
|
|
|
The significant components of the Company's deferred tax assets and liabilities are as follows:
| |
|
2025 |
|
|
2024 |
|
|
2023 |
|
| Deferred Tax Assets (liabilities) |
|
|
|
|
|
|
|
|
|
| Mineral property interests |
$ |
(4,236 |
) |
$ |
(2,651 |
) |
$ |
(1,881 |
) |
| Equipment |
|
128 |
|
|
106 |
|
|
115 |
|
| Non-capital losses |
|
1,797 |
|
|
1,280 |
|
|
389 |
|
| Net deferred tax liability |
$ |
(2,311 |
) |
$ |
(1,265 |
) |
$ |
(1,377 |
) |
The significant components of the Company's temporary differences, unused tax credits and unused tax losses that have not been included on the consolidated statement of financial position are as follows:
| |
|
2025 |
|
|
Expiry Date Range |
|
|
2024 |
|
|
Expiry Date Range |
|
|
2023 |
|
|
Expiry Date Range |
|
| Temporary Differences |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Mineral property interests |
$ |
3,363 |
|
|
No expiry date |
|
$ |
3,217 |
|
|
No expiry date |
|
$ |
3,667 |
|
|
No expiry date |
|
| Equipment |
|
936 |
|
|
No expiry date |
|
|
854 |
|
|
No expiry date |
|
|
888 |
|
|
No expiry date |
|
| Lease liability |
|
102 |
|
|
No expiry date |
|
|
150 |
|
|
No expiry date |
|
|
215 |
|
|
No expiry date |
|
| Share issue costs |
|
93 |
|
|
2046 to 2049 |
|
|
175 |
|
|
2045 to 2048 |
|
|
297 |
|
|
2044 to 2047 |
|
| Marketable securities |
|
1,073 |
|
|
No expiry date |
|
|
1,022 |
|
|
No expiry date |
|
|
916 |
|
|
No expiry date |
|
| Allowable capital losses and other |
|
187 |
|
|
No expiry date |
|
|
105 |
|
|
No expiry date |
|
|
87 |
|
|
No expiry date |
|
| Non-capital losses available for future period |
|
14,633 |
|
|
See below |
|
|
13,708 |
|
|
See below |
|
|
13,067 |
|
|
See below |
|
| Canada |
|
14,343 |
|
|
2030 to 2045 |
|
|
12,278 |
|
|
2030 to 2044 |
|
|
12,653 |
|
|
2030 to 2043 |
|
| USA |
|
290 |
|
|
No expiry date |
|
|
1,430 |
|
|
No expiry date |
|
|
414 |
|
|
No expiry date |
|