Major items causing the Company’s income tax rate to differ from the Canadian statutory rate of approximately 26.5% are as follows:


	Year ended March 31,
	2026	2025
		Restated - Note 2
	$	$
Net loss before income taxes	(147,998)	(81,607)

Expected recovery at statutory rate	39,219	21,626
Share-based compensation	(685)	(7,572)
Share issuance costs	2,806	88
Difference between Canadian and foreign tax rates	(16,438)	(6,720)
Effect of exchange on unbooked deferred tax assets	816	253
Non-deductible expenses	(124)	(75)
Change in unrecognized deferred tax assets	(25,594)	(7,600)
Income tax recovery	—	—

The significant components of the Company’s deferred tax assets resulting from temporary differences, unused tax credits and unused tax losses, that have not been included on the consolidated statement of financial position, are as follows:


As at	March 31, 2026	March 31, 2025
		Restated - Note 2
	$	$
Non-capital loss carryforwards - Canada	24,906	15,518
Non-capital loss carryforwards - United States	2,715	1,762
Non-capital loss carryforwards - Ireland	25,448	12,748
Non-capital loss carryforwards - United Kingdom	8,374	7,489
Deferred compensation	526	1,150
Research and development expenditures	2,680	1,765
Share issuance costs	3,546	2,158
Depreciation/capital cost allowance differences	(1)	10
	68,194	42,600
Valuation allowance	(68,194)	(42,600)
	—	—

As at March 31, 2026, the Company has non-capital losses in Canada, which under certain circumstances can be used to reduce taxable income of future years. The non-capital losses, stated in U.S. dollars, expire as follows:


Year of expiry			$
2036			1
2037			44
2038			23
2039			83
2040			619
2041			15,679
2042			11,492
2043			7,679
2044			17,502
2045			7,272
2046			33,588
			93,982

As at March 31, 2026, the Company has non-capital losses in the United States and Massachusetts of $20,446, which under certain circumstances can be used to reduce the taxable income of future years. The federal

losses have no expiry but are subject to limitations on utilization as laid out below. The Massachusetts non-capital losses expire as follows:

Although the US federal losses carryforward indefinitely, they are subject to restrictions on their deductibility. For federal purposes the deductibility of $20,446 is restricted to 80% of taxable income in the year of utilization. The deductibility of $733 is further restricted to an annual limitation under Section 382. As at March 31, 2026, the annual limitation was $106.

As at March 31, 2026, the Company has non-capital losses in Ireland, which under certain circumstances can be used to reduce taxable income of future years. The non-capital losses in Ireland, stated in U.S. Dollars, expire as follows: