v3.26.3
Income Taxes
 12 Months Ended
Jun. 30, 2026
Income Tax Disclosure [Abstract]  
Income Taxes
13.
INCOME TAXES

Domestic and foreign components of loss before income taxes for the years ended June 30, 2026 and 2025 are as follows:

 

 

For the year ended June 30,

 

2026

 

2025

Canada

 

$(29,649)

 

$(13,089)

United States

 

(21,053)

 

(4,818)

United Kingdom

 

(79)

 

(75)

Total

 

$(50,781)

 

$(17,982)

 

The following table is a reconciliation of income taxes at statutory rates:

 

 

For the year ended June 30,

 

 

2026

 

2025

 

$

 

%

 

$

 

%

Income tax benefit at Canadian federal statutory rate

 

$(7,617)

 

15.00%

 

$(2,697)

 

15.00%

Provincial income tax

 

(3,558)

 

7.01%

 

$(1,571)

 

8.74%

Non-taxable/non-deductible items:

 

 

 

 

 

 

 

 

Stock issuance costs in equity

 

(8,119)

 

15.99%

 

$(1,143)

 

6.36%

Warrant liabilities

 

3,519

 

(6.93)%

 

$1,105

 

(6.15)%

Earnout share liability

 

2,314

 

(4.56)%

 

$557

 

(3.10)%

Share based payments

 

822

 

(1.62)%

 

$194

 

(1.08)%

Other

 

208

 

(0.41)%

 

$5

 

(0.03)%

Change in valuation allowance

 

9,249

 

(18.21)%

 

2,804

 

(15.59)%

Other

 

12

 

(0.02)%

 

13

 

(0.07)%

Foreign Tax Effects

 

 

 

 

 

 

 

 

United States:

 

 

 

 

 

 

 

 

Foreign rate differences

 

(2,105)

 

4.15%

 

(482)

 

2.68%

Change in valuation allowance

 

4,908

 

(9.67)%

 

1,159

 

(6.45)%

Other

 

355

 

(0.71)%

 

45

 

(0.25)%

Other foreign jurisdictions

 

12

 

(0.02)%

 

11

 

(0.06)%

Total

 

$—

 

0.00%

 

$—

 

0.00%

The provincial income tax rate reflects the statutory general corporate income tax rate of 12% applicable in the Province of British Columbia. Income tax benefit was $0 in each of the Canadian federal, Canadian provincial, U.S., and U.K. jurisdictions for the years ended June 30, 2026 and 2025. In addition, during the years ended June 30, 2026 and 2025, the Company did not pay any income taxes, net of refunds received, in Canada, the United States, or the United Kingdom.

 

 

Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. The significant components of deferred taxes are as follows:

 

 

As of June 30,

 

2026

 

2025

Deferred tax assets

 

 

 

 

Mineral interests

 

$13,562

 

$10,438

Net operating losses available for future periods

 

20,424

 

16,125

Startup and organizational costs

 

1,697

 

1,842

Research and development costs

 

2,120

 

1,295

Share issuance/financing costs

 

7,420

 

1,357

Canadian restricted interest and financing carryforward

 

605

 

605

Capital losses available for future periods

 

457

 

456

Other

 

50

 

41

Total deferred tax assets

 

46,335

 

32,159

Valuation allowance

 

(46,335)

 

(32,159)

Net deferred tax assets

 

$—

 

$—

 

Changes in the valuation allowance are as follows:

 

 

For the year ended June 30,

 

2026

 

2025

Valuation allowance, beginning of year

 

$(32,159)

 

$(28,181)

Current year additions

 

(14,176)

 

(3,978)

Valuation allowance, end of year

 

$(46,335)

 

$(32,159)

 

The Company establishes a valuation allowance against future income tax assets if, based on available information, it is more likely than not that all of the assets will not be realized. The valuation allowance of $46,335 at June 30, 2026, relates mainly to net operating loss carryforwards in Canada and mineral interests due to deferred exploration expenditures in the United States, where the utilization of such attributes is not more likely than not.

The Company has the following cumulative net operating losses for Canadian and U.S. Federal income tax purposes. Canadian tax loss carryforwards will generally expire between 2028 and 2045. U.S. tax losses incurred through June 30, 2018, totaled $981 and will generally expire between 2031 and 2038. As a result of the Tax Cuts and Jobs Act of 2017, U.S. tax losses incurred for our tax years ending on and after June 30, 2019, totaling $10,027, have no expiration.

 

 

 

As of June 30,

Jurisdiction

 

2026

 

2025

Canada

 

$64,990

 

$53,194

United States

 

11,008

 

6,627

United Kingdom

 

208

 

112

Total

 

$76,206

 

$59,933

 

In addition, the Company has a Canadian capital loss carryforward of $3,388 as of June 30, 2026, which has no expiration date and can be used to offset future capital gains, and U.S. state net operating loss carryforwards of $13,124 as of June 30, 2026 which generally expire between 2031 and 2046.

At June 30, 2026 and 2025, we had no undistributed earnings of foreign subsidiaries that would be subject to income tax upon distribution to Canada from a foreign subsidiary. As such, as of June 30, 2026 and 2025, we did not provide for deferred taxes on any such earnings of our foreign subsidiaries.

The Company had no unrecognized tax benefits as of June 30, 2026 or 2025. The Company has not recognized any interest or penalties in the fiscal years presented in these consolidated financial statements. The Company is subject to income tax in the U.S. federal jurisdiction, the United Kingdom, and Canada. Certain years remain subject to examination by the applicable tax authorities.

On July 4, 2025, the One Big Beautiful Bill Act (“OBBBA”) was enacted in the U.S., which includes a broad range of tax reform provisions affecting businesses. The OBBBA includes numerous changes to existing tax law including extending or making permanent certain business and international tax measures initially established under the 2017 Tax Cuts and Jobs Act, which were set to expire. The OBBBA contains several changes to corporate taxation including modifications to capitalization of research and development expenses, modifications to deductions for interest expense, and accelerated depreciation on certain asset additions. The OBBBA was enacted during the year ended June 30, 2026. Given the Company's full valuation allowance against its net deferred tax assets, the enactment of the OBBBA did not have a material impact on the Company's income tax provision or effective tax rate for the year ended June 30, 2026.