Income Taxes

Schedule of income tax expense and tax rates to the net income (losses) before taxes

Income tax expense varies from the amount that would be computed by applying the basic federal and provincial income tax rates to the net income (losses) before taxes as follows:

December 31,	2025			2024

(Loss) income for the year	$	(6,690	)	$	2,463

Tax rate		23.0	%		23.0	%

Expected Canadian income tax recovery (expense)	$	1,539		$	(568	)

Decrease resulting from:
Change in unrecognized temporary differences		(4,480	)		3,422
Share issuance costs in equity		(683	)		-
Difference between Canadian statutory rate and those applicable to U.S. and other foreign subsidiaries		(97	)		(63	)
Non-deductible expenses and non-taxable income		(95	)		(50	)
Adjustment for prior years income tax matters		4,751			(2,665	)
Expiry of tax losses		(957	)		-
Other		-			(76	)
Income tax expense	$	(22	)	$	-

Schedule of unrecognized deferred tax assets

Deferred tax assets have not been recognized in respect of the following items:

December 31,	2025		2024

Deductible temporary differences	$	1,923	$	21,333
Tax loss carryforwards		189,282		192,030
Property plant and equipment		3,677		-
Lease liability		207		-
Share issuance costs		2,834		-
R&D tax credits		2,139		-

Unrecognized deferred tax assets	$	200,062	$	213,363

Schedule of movement in deferred tax balances

	Balance at			Recognized in			Recognized		Balance at
	December 31, 2024			Profit and Loss			in Equity		December 31, 2025

Property and equipment	$	(524	)	$	214		$	-	$	(310	)
Intangible assets		(89	)		(74	)		-		(163	)
Investments at fair value		-			(99	)		-		(99	)
Right of use assets		-			(39	)		-		(39	)
Tax reserves and other		(5	)		3			-		(2	)
Tax loss carryforwards		618			(5	)		-		613

Net tax (assets) liabilities	$	-		$	-		$	-	$	-