v3.25.1
Income Taxes
 12 Months Ended
Dec. 31, 2024
Income Tax Disclosure [Abstract]  
Income Taxes [Text Block]

17 Income Taxes

The Company's income tax provision has been calculated as follows:

    2024     2023  
Loss before income taxes $ (7,859,171 ) $ (8,225,334 )
Expected income tax recovery at the statutory rate of 21% (2023-21%)   (1,650,426 )   (1,727,320 )
Foreign tax rate differences   (322,065 )   (66,534 )
Prior year adjustments   (707,108 )   26,565  
Foreign exchange effect on deferred tax assets and other   227,964     (62,195 )
Permanent differences   837,774     681,551  
Change in valuation allowance   1,613,861     1,147,933  
Provision for income taxes $ -   $ -  

 

Deferred tax assets and liabilities

The tax effects of temporary differences that give rise to significant components of the deferred income tax assets and deferred income tax liabilities are presented below:

    2024     2023  
Net operating loss carry forwards $ 6,034,337   $ 4,795,400  
Financing costs   53,071     41,495  
Depreciable and amortizable assets   171,062     (21,073 )
Land   (57,618 )   (175,603 )
Other timing differences   251,384     198,156  
Total gross deferred income tax assets   6,452,236     4,838,375  
Less: valuation allowance   6,452,236     4,838,375  
Total deferred income tax liabilities $ -   $ -  

As at December 31, 2024 and 2023, the valuation allowance was due primarily to the history of losses generated. The valuation allowance is reviewed periodically and if the assessment of the more likely than not criteria changes, the valuation allowance is adjusted accordingly.

Potential benefits of income tax losses are not recognized in the accounts until realization is more likely than not. The Company computes tax asset benefits for net operating losses ("NOL") carried forward.

The Company has US NOL available for carry forward of $12,436,427 (2023-$9,499,557) which can be carried forward indefinitely and Canadian NOL available for carry forward of $12,915,801 (C$18,583,887) (2023-$10,567,898; C$13,976,852) which expire in the years 2037 through 2044.