| Income Tax |
A
reconciliation of the expected income tax recovery to the actual income tax recovery is as follows:
SCHEDULE OF RECONCILIATION OF THE EXPECTED INCOME TAX
| | |
December 31, 2025 | | |
December 31, 2024 | |
| Income (Loss) before income taxes | |
$ | (19,722,261 | ) | |
$ | (11,445,652 | ) |
| Statutory tax rate | |
| 27 | % | |
| 27 | % |
| Expected tax expense (recovery) | |
| (5,325,010 | ) | |
| (3,090,326 | ) |
| Non-deductible expenses and other | |
| 1,875,335 | | |
| 2,392,797 | |
| Impact of foreign exchange | |
| 40,701 | | |
| (317,069 | ) |
| Impact of foreign tax rate | |
| 517,427 | | |
| 361,612 | |
| Loss carryforwards removed on dissolution of subsidiary | |
| 1,114,893 | | |
| - | |
| Change in valuation allowance | |
| 1,776,654 | | |
| 652,986 | |
| Total | |
$ | — | | |
$ | — | |
Significant
components of the Company’s deferred tax assets as of December 31, 2025 and 2024 are as follows:
SCHEDULE
OF DEFERRED TAX ASSETS
| | |
December 31, 2025 | | |
December 31, 2024 | |
| Deferred income tax assets: | |
| | | |
| | |
| Loss
carryforwards removed on dissolution of subsidiary | |
| (1,114,893 | ) | |
| - | |
| Non-capital losses | |
$ | 14,466,345 | | |
$ | 12,393,800 | |
| Exploration and evaluation assets | |
| 5,820,101 | | |
| 5,068,587 | |
| Property and equipment | |
| (4,366,698 | ) | |
| (4,603,539 | ) |
| Share issuance costs | |
| 197,463 | | |
| 366,816 | |
| Deferred
income tax assets | |
$ | 15,002,318 | | |
$ | 13,225,664 | |
Anfield
Energy Inc.
Notes
to the Consolidated Financial Statements
For the
years ended December 31, 2025 and 2024
(Expressed
in Canadian Dollars)
| 13. | Income
Tax (continued) |
The
tax pools relating to these deductible temporary difference expire as follows:
SCHEDULE OF DEDUCTIBLE TEMPORARY DIFFERENCE EXPIRE
| | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| | |
Canadian non-capital losses | | |
Canadian resource pools | | |
United States tax losses | | |
United States resource pools | | |
Property and equipment | | |
Share issue costs | |
| 2032 | |
$ | 583,364 | | |
$ | - | | |
$ | - | | |
$ | - | | |
$ | - | | |
$ | - | |
| 2033 | |
| 717,523 | | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | |
| 2034 | |
| 1,566,222 | | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | |
| 2035 | |
| 1,049,578 | | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | |
| 2036 | |
| 1,121,278 | | |
| - | | |
| 271,584 | | |
| - | | |
| - | | |
| - | |
| 2037 | |
| 2,591,686 | | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | |
| 2038 | |
| 3,814,238 | | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | |
| 2039 | |
| 1,495,165 | | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | |
| 2040 | |
| 2,179,304 | | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | |
| 2041 | |
| 2,525,063 | | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | |
| 2042 | |
| 5,429,508 | | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | |
| 2043 | |
| 3,582,932 | | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | |
| 2044 | |
| 5,726,345 | | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | |
| 2025 | |
| 6,637,294 | | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | |
| No expiry | |
| - | | |
| 2,271,762 | | |
$ | 13,138,828 | | |
| 57,732,041 | | |
| 540,479 | | |
| 731,344 | |
| Total | |
$ | 39,019,500 | | |
$ | 2,271,762 | | |
$ | 13,410,412 | | |
$ | 57,732,041 | | |
$ | 540,479 | | |
$ | 731,344 | |
|