v3.25.2
Income Taxes
 12 Months Ended
Jun. 30, 2025
Income Tax Disclosure [Abstract]  
Income Taxes

Note 12. Income Taxes

At June 30, 2025, the Company has net operating loss carry forwards of $38,200,235 (2024- $38,219,334) expiring between the years 2025 and 2038 which are available to reduce future taxable income. Tax losses incurred after June 30, 2018 of $45,427,872 (2024 - $35,736,884) may be carried forward indefinitely. The tax effects of the significant components within the Company’s deferred tax asset (liability) at June 30, 2025 and 2024 are as follows:

United States

 

2025

 

 

2024

 

Mineral properties

 

$

71,353

 

 

$

308,364

 

Asset retirement obligation

 

 

481,691

 

 

 

476,760

 

Fixed assets

 

 

(257

)

 

 

752

 

Derivatives

 

 

276,686

 

 

 

185,163

 

Stock options

 

 

626,052

 

 

 

628,667

 

Other

 

 

2,100

 

 

 

2,100

 

Net operating losses

 

 

17,565,333

 

 

 

15,534,237

 

 

 

$

19,022,958

 

 

$

17,136,043

 

Valuation allowance

 

 

(19,315,657

)

 

 

(17,409,493

)

Mineral properties

 

$

(292,699

)

 

$

(273,450

)

Net deferred tax asset

 

$

—

 

 

$

—

 

 

The income tax recovery differs from the amounts computed by applying statutory tax to pre-tax losses as a result of the following:

 

 

2025

 

 

2024

 

Loss before taxes

 

$

(9,031,174

)

 

$

(8,023,038

)

US Statutory tax rate

 

 

21.00

%

 

 

21.00

%

Expected income recovery

 

 

(1,896,547

)

 

 

(1,684,838

)

Non-deductible items

 

 

482

 

 

 

1,099

 

Change in estimates

 

 

9,150

 

 

 

(67,181

)

Other items

 

 

—

 

 

 

—

 

Change in tax rates

 

 

—

 

 

 

—

 

Change in valuation allowance

 

 

1,906,164

 

 

 

1,784,327

 

Total income taxes

 

 

19,249

 

 

$

33,407

 

Current tax expense

 

 

—

 

 

 

—

 

Deferred tax expense

 

 

19,249

 

 

 

33,407

 

 

 

$

—

 

 

$

—

 

The potential tax benefits of net operating losses have not been recognized in these financial statements because the Company cannot be assured it is more likely than not it will utilize the net operating losses carried forward in future years.

Accounting for uncertainty for Income Tax

Income taxes are determined using assets and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis. Deferred tax assets and liabilities are measured using the enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the period that includes the enactment date. In addition, a valuation allowance is established to reduce any deferred tax asset for which it is determined that it is more likely than not that some portion of the deferred tax asset will not be realized.

As at June 30, 2025 and 2024, the Company’s consolidated balance sheets did not reflect a liability for uncertain tax positions, nor any accrued penalties or interest associated with income tax uncertainties. The Company is subject to income taxation at the federal and state levels. The Company is subject to US federal tax examinations for the tax years 2019 through 2024. Loss carryforwards generated or utilized in years earlier than 2019 are also subject to examination and adjustment. The Company has no income tax examinations in process.