| INCOME TAX |
13.INCOME TAX A summary of the Company’s reconciliation of income taxes at statutory rates for the years ended June 30, 2026 and 2025, is as follows | | | | | | | | | | Years ended June 30, | | | | 2026 | | 2025 | | Canadian statutory tax rate | | | 27.00 | % | | 27.00 | % | | | | | | | | | Loss before income taxes | | $ | (1,578,941) | | $ | (3,780,222) | | | | | | | | | | Income tax recovery computed at Canadian statutory rates | | | (426,309) | | | (1,020,659) | | Foreign tax rates different from statutory rate | | | 322,632 | | | (69,866) | | Permanent items and other | | | (194,975) | | | 583,296 | | Change in unrecognized deferred tax assets | | | 298,652 | | | 507,229 | | | | | — | | | — | |
Deferred tax assets are recognized to the extent that the realization of the related tax benefit through future taxable profits is probable. The ability to realize the tax benefits is dependent upon numerous factors, including the future profitability of operations in the jurisdiction in which the tax benefit arises. Deductible temporary differences and unused tax loss for which no deferred tax assets have been recognized are attributable to the following: | | | | | | | | | June 30, 2026 | | June 30, 2025 | Non-capital loss carry forward | | $ | 14,962,117 | | $ | 16,212,219 | Capital loss carry forward | | | 17,885,070 | | | 18,622,526 | Proerpty, plant and equipment | | | 240,563 | | | 248,417 | Equity investments | | | 246,411 | | | 337,682 | Share issuance cost | | | 1,980,621 | | | 857,623 | | | | 35,314,782 | | | 36,278,467 |
As of June 30, 2026, the Company has the following net operating losses, expiring various years to 2046 and available to offset future taxable income in Canada, Bolivia, respectively: | | | | | | | | | Canada | | Bolivia | 2026 | | | — | | | — | 2027 | | | — | | | 1,262,008 | 2028 | | | — | | | 1,750,762 | 2029 | | | — | | | 1,928,247 | 2030 | | | — | | | 809,750 | 2031 | | | — | | | 1,212,114 | 2032 | | | — | | | — | 2033 | | | — | | | — | 2034 | | | — | | | — | 2035 | | | — | | | — | 2036 | | | — | | | — | 2037 | | | — | | | — | 2038 | | | — | | | — | 2039 | | | — | | | — | 2040 | | | — | | | — | 2041 | | | — | | | — | 2042 | | | — | | | — | 2043 | | | 1,915,434 | | | — | 2044 | | | 2,938,612 | | | — | 2045 | | | 2,224,393 | | | — | 2046 | | | 920,797 | | | — | | | $ | 7,999,236 | | $ | 6,962,881 |
As at June 30, 2026, the Company had capital loss carry forward of $17,885,070 that can be carried indefinitely in Canada (June 30, 2025 - $18,622,526).
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