INCOME TAXES (Tables)
|
12 Months Ended |
Dec. 31, 2025 |
| Income Tax Disclosure [Abstract] |
|
| SUMMARY OF INCOME TAX PROVISION |
For
the years ended December 31, 2025 and 2024, loss before income tax provision consisted of the following:
SUMMARY OF INCOME TAX PROVISION
| | |
December 31, 2025 | | |
December 31, 2024 | |
|
| SCHEDULE OF COMPONENTS OF INCOME TAX |
SCHEDULE OF COMPONENTS OF INCOME TAX
| | |
| | | |
| | |
| | |
December 31, 2025 | |
| Statutory tax rate | |
| 27.00 | % | |
| | |
| Income taxes at the statutory rate | |
$ | (8,962,706 | ) | |
| 27 | % |
| Foreign tax effects | |
| | | |
| | |
| United States: | |
| | | |
| | |
| Statutory tax rate difference between US and Canada | |
| 462,784 | | |
| -1 | % |
| Foreign currency translation | |
| (38,054 | ) | |
| 0 | % |
| Other adjustments | |
| 134,940 | | |
| 0 | % |
| Change in valuation allowance | |
| 1,522,860 | | |
| -5 | % |
| Non-taxable or non-deductible items: | |
| | | |
| | |
| Debt conversion and extinguishment losses | |
| 2,712,062 | | |
| -8 | % |
| Non-deductible accretion interest | |
| 843,158 | | |
| -3 | % |
| Share issuance costs | |
| (454,114 | ) | |
| 1 | % |
| Stock-based compensation | |
| 410,442 | | |
| -1 | % |
| Foreign currency translation | |
| (716,327 | ) | |
| 2 | % |
| Change in fair value of warrants | |
| (803,766 | ) | |
| 2 | % |
| Other permanent differences | |
| 7,292 | | |
| 0 | % |
| Changes in valuation allowance | |
| 4,556,376 | | |
| -13 | % |
| Other adjustments | |
| 325,053 | | |
| -1 | % |
| Income tax expense (recovery) | |
$ | - | | |
| 0 | % |
The
following table reconciles income taxes calculated at the Canadian statutory rate with the actual income tax expense for the year ended
December 31, 2024.
| | |
| | | |
| | |
| | |
December 31, 2024 | |
| Statutory tax rate | |
| 27.00 | % | |
| | |
| Income taxes at the statutory rate | |
$ | (4,394,200 | ) | |
| 27 | % |
| Change in fair value of derivative liabilities | |
| (377,536 | ) | |
| 2 | % |
| Non-deductible accretion interest | |
| 671,064 | | |
| -4 | % |
| Debt conversion and extinguishment losses | |
| 1,195,929 | | |
| -7 | % |
| Stock-based compensation | |
| 109,803 | | |
| -1 | % |
| Share issue costs | |
| (126,529 | ) | |
| 1 | % |
| Foreign currency translation | |
| 1,159,454 | | |
| -7 | % |
| Other | |
| (80,453 | ) | |
| 0 | % |
| Total | |
$ | (1,842,468 | ) | |
| 11 | % |
| Change in valuation allowance | |
| 1,842,468 | | |
| -11 | % |
| Total income tax expense (benefit) | |
$ | - | | |
| 0 | % |
|
| SCHEDULE OF DEFERRED TAX ASSETS AND LIABILITIES |
Deferred
income taxes reflect the net tax effect of temporary differences between the carrying amounts of assets and liabilities for financial
reporting purposes and the amounts used for income tax purposes. A valuation allowance is provided for deferred tax assets if it is more
likely than not that we will not realize those tax assets through future operations. Significant components of the Company’s deferred
taxes are as follows:
SCHEDULE OF DEFERRED TAX ASSETS AND LIABILITIES
| | |
December 31, 2025 | | |
December 31, 2024 | |
| Deferred tax assets: | |
| | | |
| | |
| Unused net operating losses carry forward - Canada | |
$ | 14,365,607 | | |
$ | 10,904,961 | |
| Unused net operating losses carry forward - US Federal and State | |
| 930,193 | | |
| 1,036,463 | |
| Share issue costs - Canada | |
| 155,787 | | |
| 261,984 | |
| Unrealized loss on market revaluation - US | |
| 1,630,987 | | |
| - | |
| Intangible capital assets - Canada | |
| 2,695,255 | | |
| 1,388,075 | |
| Intangible capital assets - US | |
| 258 | | |
| - | |
| Intangible capital assets | |
| 258 | | |
| - | |
| SR&ED pool - Canada | |
| 61,301 | | |
| - | |
| Total deferred tax assets | |
$ | 19,839,388 | | |
$ | 13,591,483 | |
| | |
| | | |
| | |
| Deferred tax liabilities: | |
| | | |
| | |
| Tangible capital assets - Canada | |
$ | (217,943 | ) | |
$ | (51,391 | ) |
| Other - US | |
| (2,113 | ) | |
| - | |
| Total deferred tax liabilities | |
$ | (220,056 | ) | |
$ | (51,391 | ) |
| | |
| | | |
| | |
| Deferred tax asset | |
$ | 19,619,332 | | |
$ | 13,540,092 | |
| Valuation allowance | |
| (19,619,332 | ) | |
| (13,540,092 | ) |
| Net deferred tax assets (liabilities) | |
$ | - | | |
$ | - | |
|
| SCHEDULE OF NON-CAPITAL LOSSES USED TO OFFSET FUTURE TAXABLE INCOME IN CANADA |
SCHEDULE OF NON-CAPITAL LOSSES USED
TO OFFSET FUTURE TAXABLE INCOME IN CANADA
| | |
| | |
| 2038 | |
$ | 2,663,570 | |
| 2039 | |
| 6,033,861 | |
| 2040 | |
| 3,110,273 | |
| 2041 | |
| 8,457,838 | |
| 2042 | |
| 14,712,845 | |
| Thereafter | |
| 37,945,692 | |
| Non-capital
losses | |
$ | 72,924,079 | |
|