v3.26.1
Income Taxes
 12 Months Ended
Dec. 31, 2025
Income Taxes [Abstract]  
INCOME TAXES

NOTE 19: INCOME TAXES

 

Loss from continuing operations before income taxes is composed of the following:

 

   Year ended December 31, 
   2025   2024   2023 
Loss before income taxes from continuing operations:            
Canada   (174,611)   (1,135)   (42,161)
Foreign - United States   (33,802)   (5,878)   2,074
    (208,413)   (7,013)   (40,087)

 

Current and deferred income tax (expense) recovery from continuing operations is composed of the following:

 

   Year ended December 31, 
   2025   2024   2023 
Current tax expense (recovery):            
Canada - Federal   59    21    216 
Canada - Provincial   (126)   34    70 
Foreign - United States   168    226    258 
    101    281    544 
                
Deferred tax expense (recovery):               
Canada - Federal   
—
    
—
    (698)
Foreign - United States   
—
    65    
—
 
    
—
    65    (698)
Total income tax expense (recovery)   101    346    (154)

 

The following table summarizes the amount of income taxes paid (net of refunds received) from continuing operations:

 

   Year ended December 31, 
   2025   2024   2023 
Income taxes paid (net of refunds received):            
Canada - Federal   9    61    
—
 
Canada - Provincial   (40)   47    
—
 
Foreign - United States   458    458    295 
Total income taxes paid (received)   427    566    295 

The following table reconciles the Canadian Federal statutory tax rate to the Company’s effective tax rate:

 

   Year ended December 31, 
   2025   2024   2023 
Income tax recovery at federal statutory tax rate   (31,262)   15.0%   (1,052)   15.0%   (6,013)   15.0%
Increase (decrease) in taxes resulting from:                              
Provincial taxes*, net of federal effect   (126)   0.1%   34    (0.5)%   (1,946)   4.9%
Foreign tax effects - United States                              
Tax rate differential   (2,028)   1.0%   (353)   5.0%   124    (0.3)%
Change in valuation allowance   6,339    (3.0)%   490    (7.0)%   (281)   0.7%
Other   940    (0.5)%   1,036    (14.8)%   56   (0.1)%
Non-taxable or non-deductible items                              
Stock based compensation   2,244    (1.1)%   1,888    (26.9)%   1,591    (4.0)%
Non-deductible loss on derivatives   4,792    (2.3)%   
—
    
—
%   
—
    
—
%
Prior year true-up non capital loss   (2,232)   1.1%   
—
    
—
%   
—
    
—
%
Other   557    (0.3)%   (304)   4.3%   663    (1.7)%
Change in valuation allowance   20,877    (10.0)%   (1,393)   19.9%   5,652    (14.1)%
Other   
—
    
—
%   
—
    
—
%   
—
    
—
%
Income tax expense (recovery)   101    
—
%   346    (5.0)%   (154)   0.4%

 

*The Company is subject to Canadian federal income tax and Québec makes up the majority (>50%) of the provincial taxes.

 

Deferred tax assets and liabilities

 

Deferred taxes are computed based on enacted tax rates expected to apply at the time of realization. Deferred taxes relate primarily to temporary timing differences arising from the recognition of expenses relating to the depreciation of fixed assets, loss carryforwards and professional fees relating to the Company’s equity activity that are recognized as a reduction of equity.

 

As at December 31, 2025, the Company has analyzed the recoverability of its deferred tax assets and has concluded that it is not more likely than not that sufficient taxable profit is expected to utilize these deferred tax assets.

The components of deferred tax assets and liabilities arising from temporary differences are summarized below:

 

   As of December 31,   As of December 31, 
   2025   2024 
Deferred tax assets:        
Operating losses and interest limitation   111,611    52,724 
Change in fair value of digital assets   8,998    
—
 
Goodwill and intangibles   3,984    
—
 
Stock-based compensation   2,852    
—
 
Long-term debt   4,120    
—
 
Financing fees   2,185    4,439 
Investment in discontinued operations   18,252    9,038 
Reserves and other   11,688    5,215 
Total deferred tax assets   163,690    71,416 
Less: valuation allowance   (160,201)   (53,302)
Net deferred tax assets   3,489    18,114 
Deferred tax liabilities:          
Property, plant and equipment   (3,554)   (3,271)
Change in fair value of digital assets   
—
    (14,001)
Reserves and other   
—
    (907)
Total deferred tax liabilities   (3,554)   (18,179)
Net deferred tax assets (liabilities)   (65)   (65)

 

The following table summarizes the Company’s valuation allowance movement:

 

   As of
December 31,		   As of
December 31,		   As of
December 31,		 
   2025   2024   2023 
Balance as of January 1,   53,302    50,857    30,324 
Charged to income tax (expense) recovery   47,850    5,956    10,567 
Charged to equity   (1,878)   (717)   1,448 
Investment in discontinued operations   9,214    519    8,518 
Business combination   64,716    
—
    
—
 
Deductions   (4,197)   (3,313)   
—
 
Property, plant and equipment   (8,806)   
—
    
—
 
Balance as of December 31,   160,201    53,302    50,857 

The Company’s loss carryforward balances and expiration for continuing operations are summarized below:

 

   2031+ 
Non-capital loss carryforward    
  Canada   215,980 
  Foreign - United States   206,013 
    421,993 

 

The Company has not identified any uncertain tax positions requiring a reserve as of December 31, 2025 and 2024.