Note 12 - Income Taxes |
6 Months Ended |
|---|---|
Jun. 30, 2026 | |
| Income Tax Disclosure [Abstract] | |
| Income Taxes | 12. Income Taxes The Company recognized a full valuation allowance on its deferred tax asset as of June 30, 2026 and December 31, 2025 and has recognized a tax benefit of $1,868,176 and $1,891,184 for income tax for the three and six months ended June 30, 2026, respectively, and benefit of $52,451 and expense of $171,230 for the three and six months ended June 30, 2025. The effective tax rate was -64.00% and 16.58% for the three and six months ended June 30, 2026. The effective tax rate was 0.33% and -2.65% for the three and six months ended June 30, 2025. The effective income tax rate for the three and six months ended June 30, 2026 differs from the statutory rate primarily due to the amortization of its flow through liability. The effective income tax rate for the three and six months ended June 30, 2025 differs from the statutory rate primarily due to the full valuation allowance. At each reporting period, the Company weighs all positive and negative evidence to determine whether the deferred tax assets are more likely than not to be realized. As a result of this analysis at June 30, 2026 and December 31, 2025, the Company provided a full valuation allowance against the deferred tax assets. As part of the Dolly Varden acquisition, the Company measured and recorded a net deferred tax liability through acquisition accounting with an offsetting entry to the property & equipment assets. The Company’s deferred tax liability originating from the Dolly Varden acquisition was $55,741,022 and $nil, as of June 30, 2026 and December 31, 2025, respectively. This relates to the book to tax temporary differences between the carryover tax basis and new book basis of the net assets acquired, recognized at a statutory rate of 27%. The net deferred tax liability of $55,741,022 includes an increase related to exploration costs for the period ended June 30, 2026. As part of the HighGold acquisition, the Company measured and recorded a net deferred tax liability through acquisition accounting with an offsetting entry to the property & equipment assets. The Company’s deferred tax liability originating from the HighGold acquisition was $540,528 and $617,353, as of June 30, 2026 and December 31, 2025, respectively. The net deferred tax liability of $540,528 includes an increase related to exploration costs for the period ended June 30, 2026. The Company reviews its tax positions quarterly for tax uncertainties. The Company did not have any uncertain tax positions as of June 30, 2026 or December 31, 2025.
For the three and six months ended June 30, 2026, the Company recognized income tax benefits of $1,496,928 related to the amortization of its liability on flow-through share issuances and the associated Part XII.6 tax. For the three and six months ended June 30, 2025, the Company recognized no income tax benefit or expense related to the amortization of its liability on flow-through share issuances and the associated Part XII.6 tax. |