| Income Taxes |
27. INCOME TAXESNet loss before income taxes was generated as follows:
|
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|
|
|
|
|
|
|
|
|
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|
|
|
Years ended |
|
|
|
March 31, |
|
|
March 31, |
|
|
March 31, |
|
|
|
2026 |
|
|
2025 |
|
|
2024 |
|
|
|
|
|
|
(As Restated) |
|
|
(As Restated) |
|
Domestic - Canada |
|
$ |
(184,743 |
) |
|
$ |
(889,018 |
) |
|
$ |
(317,197 |
) |
Foreign - outside of Canada |
|
|
(78,142 |
) |
|
|
381,258 |
|
|
|
(190,569 |
) |
|
|
$ |
(262,885 |
) |
|
$ |
(507,760 |
) |
|
$ |
(507,766 |
) |
The income tax (expense) recovery consists of the following:
|
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|
|
|
|
|
|
|
|
|
|
|
|
|
Years ended |
|
|
|
March 31, |
|
|
March 31, |
|
|
March 31, |
|
|
|
2026 |
|
|
2025 |
|
|
2024 |
|
Current |
|
|
|
|
|
|
|
|
|
Domestic - Canada |
|
$ |
(96 |
) |
|
$ |
79 |
|
|
$ |
(462 |
) |
Foreign - outside of Canada |
|
|
109 |
|
|
|
(418 |
) |
|
|
194 |
|
|
|
$ |
13 |
|
|
$ |
(339 |
) |
|
$ |
(268 |
) |
Deferred |
|
|
|
|
|
|
|
|
|
Domestic - Canada |
|
$ |
(53 |
) |
|
$ |
(7,006 |
) |
|
$ |
(12,596 |
) |
Foreign - outside of Canada |
|
|
17 |
|
|
|
204 |
|
|
|
537 |
|
|
|
|
(36 |
) |
|
|
(6,802 |
) |
|
|
(12,059 |
) |
Income tax (expense) recovery |
|
$ |
(23 |
) |
|
$ |
(7,141 |
) |
|
$ |
(12,327 |
) |
As more fully described in Note 3, income taxes that are required to be reflected in equity, instead of in the consolidated statements of operations, are included in the consolidated statements of shareholders’ equity, if applicable. Current and deferred income tax referred to above is recognized based on the Company’s best estimate of the tax rates expected to apply to the income, loss or temporary difference. The Company is subject to income tax in numerous jurisdictions with varying tax rates. During the current year ended, there were no material changes to the enacted statutory tax rates in the jurisdictions where the majority of the Company’s income for tax purposes was earned or where its material temporary differences or losses are expected to be realized or settled, however the impact of commercial decisions and market forces result in changes to the distribution of income for tax purposes amongst taxing jurisdictions that may result in a change of the effective tax rate applicable to such income, loss or temporary difference. A reconciliation of the amount of income taxes reflected above compared to the expected income taxes calculated at the federal statutory income tax rate of 15% for the years ended March 31, 2026, 2025 and 2024 is as follows:
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|
|
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|
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|
|
|
Years ended |
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|
March 31, 2026 |
|
|
March 31, 2025 |
|
|
March 31, 2024 |
|
|
|
Amount |
|
|
Percent |
|
|
Amount |
|
|
Percent |
|
|
Amount |
|
|
Percent |
|
Canadian federal statutory rate |
|
$ |
39,433 |
|
|
|
15.0 |
% |
|
$ |
76,164 |
|
|
|
15.0 |
% |
|
$ |
76,165 |
|
|
|
15.0 |
% |
State and local income taxes, net of federal
income tax effect1 |
|
|
(65 |
) |
|
|
-0.2 |
% |
|
|
(2,966 |
) |
|
|
-3.9 |
% |
|
|
(5,286 |
) |
|
|
-6.9 |
% |
Acquisition costs |
|
|
(1,178 |
) |
|
|
-3.0 |
% |
|
|
(949 |
) |
|
|
-1.2 |
% |
|
|
(3,749 |
) |
|
|
-4.9 |
% |
Deconsolidation of subsidiaries |
|
|
- |
|
|
|
0.0 |
% |
|
|
- |
|
|
|
0.0 |
% |
|
|
(51,787 |
) |
|
|
-68.0 |
% |
Settlement of debt |
|
|
- |
|
|
|
0.0 |
% |
|
|
(4,715 |
) |
|
|
-6.2 |
% |
|
|
1,174 |
|
|
|
1.5 |
% |
Fair value of warrant derivative liability |
|
|
1,305 |
|
|
|
3.3 |
% |
|
|
13,386 |
|
|
|
17.6 |
% |
|
|
(5,462 |
) |
|
|
-7.2 |
% |
Other |
|
|
(1,123 |
) |
|
|
-2.8 |
% |
|
|
133 |
|
|
|
0.2 |
% |
|
|
(330 |
) |
|
|
-0.4 |
% |
Non-deductible and (non taxable) items |
|
|
(996 |
) |
|
|
-2.5 |
% |
|
|
7,855 |
|
|
|
10.3 |
% |
|
|
(60,154 |
) |
|
|
-79.0 |
% |
Federal statutory tax rate differential |
|
|
(155 |
) |
|
|
-0.4 |
% |
|
|
1,135 |
|
|
|
1.5 |
% |
|
|
6,697 |
|
|
|
8.8 |
% |
Divestiture of subsidiaries |
|
|
- |
|
|
|
0.0 |
% |
|
|
- |
|
|
|
0.0 |
% |
|
|
(16,069 |
) |
|
|
-21.1 |
% |
Other |
|
|
366 |
|
|
|
0.9 |
% |
|
|
(2,866 |
) |
|
|
-3.8 |
% |
|
|
266 |
|
|
|
0.3 |
% |
The Netherlands |
|
|
211 |
|
|
|
0.5 |
% |
|
|
(1,731 |
) |
|
|
-2.3 |
% |
|
|
(9,106 |
) |
|
|
-12.0 |
% |
Federal statutory tax rate differential |
|
|
10,725 |
|
|
|
27.2 |
% |
|
|
1,538 |
|
|
|
2.0 |
% |
|
|
6,982 |
|
|
|
9.2 |
% |
Valuation Allowance |
|
|
(21,076 |
) |
|
|
-53.4 |
% |
|
|
(2,892 |
) |
|
|
-3.8 |
% |
|
|
(15,772 |
) |
|
|
-20.7 |
% |
Other |
|
|
325 |
|
|
|
0.8 |
% |
|
|
(143 |
) |
|
|
-0.2 |
% |
|
|
(1,127 |
) |
|
|
-1.5 |
% |
Germany |
|
|
(10,026 |
) |
|
|
-25.4 |
% |
|
|
(1,497 |
) |
|
|
-2.0 |
% |
|
|
(9,917 |
) |
|
|
-13.0 |
% |
Federal statutory tax rate differential |
|
|
- |
|
|
|
0.0 |
% |
|
|
(11,570 |
) |
|
|
-15.2 |
% |
|
|
(3,865 |
) |
|
|
-5.1 |
% |
Divestiture of subsidiaries |
|
|
- |
|
|
|
0.0 |
% |
|
|
28,905 |
|
|
|
38.0 |
% |
|
|
9,663 |
|
|
|
12.7 |
% |
United Kingdom |
|
|
- |
|
|
|
0.0 |
% |
|
|
17,335 |
|
|
|
22.8 |
% |
|
|
5,798 |
|
|
|
7.6 |
% |
Federal statutory tax rate differential |
|
|
252 |
|
|
|
0.6 |
% |
|
|
869 |
|
|
|
1.1 |
% |
|
|
15,783 |
|
|
|
20.7 |
% |
Valuation Allowance |
|
|
(259 |
) |
|
|
-0.7 |
% |
|
|
(3,091 |
) |
|
|
-4.1 |
% |
|
|
(27,995 |
) |
|
|
-36.8 |
% |
Deconsolidation of subsidiaries |
|
|
- |
|
|
|
0.0 |
% |
|
|
43,365 |
|
|
|
56.9 |
% |
|
|
(7,348 |
) |
|
|
-9.6 |
% |
United States of America |
|
|
(7 |
) |
|
|
0.0 |
% |
|
|
41,143 |
|
|
|
53.9 |
% |
|
|
(19,560 |
) |
|
|
-25.7 |
% |
Other foreign jurisdictions |
|
|
482 |
|
|
|
1.2 |
% |
|
|
1,723 |
|
|
|
2.3 |
% |
|
|
4,932 |
|
|
|
6.5 |
% |
Foreign Tax Effects |
|
|
(9,340 |
) |
|
|
-23.7 |
% |
|
|
56,973 |
|
|
|
74.7 |
% |
|
|
(27,853 |
) |
|
|
-36.6 |
% |
Change in valuation allowances |
|
|
(22,485 |
) |
|
|
-57.0 |
% |
|
|
(90,220 |
) |
|
|
-118.5 |
% |
|
|
55,468 |
|
|
|
72.8 |
% |
Other |
|
|
(1,544 |
) |
|
|
-3.9 |
% |
|
|
(90 |
) |
|
|
-0.1 |
% |
|
|
(1,209 |
) |
|
|
-1.6 |
% |
Reversal of tax recorded in OCI |
|
|
- |
|
|
|
0.0 |
% |
|
|
(3,203 |
) |
|
|
-4.2 |
% |
|
|
(5,830 |
) |
|
|
-7.7 |
% |
Non-taxable portion of capital gains and
losses |
|
|
(5,026 |
) |
|
|
-12.7 |
% |
|
|
(51,654 |
) |
|
|
-67.8 |
% |
|
|
(43,628 |
) |
|
|
-57.3 |
% |
Other adjustments |
|
|
(6,570 |
) |
|
|
-16.7 |
% |
|
|
(54,947 |
) |
|
|
-72.1 |
% |
|
|
(50,667 |
) |
|
|
-66.5 |
% |
Income tax (expense) recovery |
|
$ |
(23 |
) |
|
|
-0.1 |
% |
|
$ |
(7,141 |
) |
|
|
-9.4 |
% |
|
$ |
(12,327 |
) |
|
|
-16.2 |
% |
1 Canadian provincial income taxes paid are 100% attributed to Ontario. |
|
Current income taxes payable in the amount of $291 (March 31, 2025 – $397) is included in accounts payable and current income taxes receivable in the amount of $nil (March 31, 2025 – $nil) is included in other accounts receivable. The Company continues to believe the amount of unrealized tax benefits appropriately reflects the uncertainty of items that are or may in the future be under discussion, audit, dispute or appeal with a tax authority or which otherwise result in uncertainty in the determination of income for tax purposes. If appropriate, an unrealized tax benefit will be realized in the year in which the Company determines that realization is not in doubt. Where the final determined outcome is different from the Company’s estimate, such difference will impact the Company’s income taxes in the year during which such determination is made. Significant components of deferred income tax assets (liabilities) consist of the following:
|
|
|
|
|
|
|
|
|
|
|
March 31, |
|
|
March 31, |
|
|
|
2026 |
|
|
2025 |
|
Deferred income tax assets |
|
|
|
|
|
|
Property, plant and equipment |
|
$ |
74,028 |
|
|
$ |
74,392 |
|
Intangible assets |
|
|
30,263 |
|
|
|
17,483 |
|
Inventory reserves and write-downs |
|
|
5,584 |
|
|
|
5,587 |
|
Other reserves and accruals |
|
|
6,501 |
|
|
|
2,792 |
|
Losses carried forward |
|
|
1,184,939 |
|
|
|
1,176,913 |
|
Equity method investments and other financial assets |
|
|
113,359 |
|
|
|
106,570 |
|
Deferred financing costs |
|
|
7,581 |
|
|
|
11,439 |
|
Unrealized losses |
|
|
62,211 |
|
|
|
68,877 |
|
Other |
|
|
32,069 |
|
|
|
10,698 |
|
Gross deferred income tax assets |
|
|
1,516,535 |
|
|
|
1,474,751 |
|
Valuation allowances |
|
|
(1,508,750 |
) |
|
|
(1,474,467 |
) |
Total deferred income tax assets, net |
|
$ |
7,785 |
|
|
$ |
284 |
|
|
|
|
|
|
|
|
Deferred income tax liabilities |
|
|
|
|
|
|
Property, plant and equipment |
|
$ |
(1,849 |
) |
|
$ |
- |
|
Intangible assets |
|
|
(7,394 |
) |
|
|
- |
|
Deferred financing costs |
|
|
(5,506 |
) |
|
|
- |
|
Other |
|
|
(973 |
) |
|
|
- |
|
Total deferred income tax liabilities |
|
|
(15,722 |
) |
|
|
- |
|
Net deferred income tax assets (liabilities) |
|
$ |
(7,937 |
) |
|
$ |
284 |
|
In evaluating whether it is more likely than not that all or a portion of a deferred income tax asset will be realized consideration is given to the estimated reversal of deferred income tax liabilities and future taxable income. The Company has recognized valuation allowances for operating losses carried forward, capital losses carried forward and other deferred income tax assets when it is believed that it is more likely than not that these items will not be realized. As at March 31, 2026, the Company had temporary differences associated with investments in foreign subsidiaries for which no deferred income tax liabilities have been recognized, as the Company is able to control the timing of the reversal of these temporary differences and material undistributed earnings are considered permanently invested. Determination of the amount of the unrecognized deferred income tax liability is not practicable due to the inherent complexity of the multi-jurisdictional operations of the Company. The cash income taxes paid by jurisdiction are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Years ended |
|
|
|
March 31, |
|
|
March 31, |
|
|
March 31, |
|
|
|
2026 |
|
|
2025 |
|
|
2024 |
|
|
|
|
|
|
|
|
|
|
|
Canadian federal |
|
$ |
- |
|
|
$ |
(104 |
) |
|
$ |
(5,706 |
) |
Canadian provincial1 |
|
|
- |
|
|
|
(24 |
) |
|
|
- |
|
Foreign |
|
|
|
|
|
|
|
|
|
Australia |
|
|
307 |
|
|
|
254 |
|
|
|
- |
|
Germany |
|
|
(325 |
) |
|
|
529 |
|
|
|
485 |
|
Netherlands |
|
|
162 |
|
|
|
- |
|
|
|
(195 |
) |
USA |
|
|
- |
|
|
|
- |
|
|
|
1,260 |
|
Total foreign |
|
|
144 |
|
|
|
783 |
|
|
|
1,550 |
|
|
|
$ |
144 |
|
|
$ |
655 |
|
|
$ |
(4,156 |
) |
1 Canadian provincial income taxes paid are 100% attributed to Ontario |
|
As at March 31, 2026, the Company has the following losses carried forward available to reduce future years’ taxable income, which losses expire as follows:
|
|
|
|
|
Expiring within 5 years |
|
$ |
1,864 |
|
Expiring between 5 and 10 years |
|
|
12,629 |
|
Expiring between 10 and 15 years |
|
|
853,917 |
|
Expiring between 15 and 20 years |
|
|
2,313,166 |
|
Indefinite |
|
|
581,948 |
|
|
|
$ |
3,763,524 |
|
|
|
|
|
|
Total in Canada |
|
$ |
3,179,713 |
|
Total in United States |
|
|
505,295 |
|
Total in Europe |
|
|
78,516 |
|
|
|
$ |
3,763,524 |
|
|
|
|
|
|
Total operating losses |
|
$ |
3,763,524 |
|
Total capital losses (carried forward indefinitely) |
|
|
1,427,322 |
|
|
|
$ |
5,190,846 |
|
|