v3.26.3
Income tax
 12 Months Ended
Jun. 30, 2026
Income Tax  
Income tax

 

28.Income tax:

 

The Company is subject to income taxes in Canada, while the subsidiaries in United States are subject to the income tax laws of the United States.

 

The actual income tax provision differs from the expected amount calculated by applying the Canadian combined federal and provincial corporate tax rates to income before tax. For entities subject to U.S. taxation, the expected provision is calculated using the applicable U.S. federal and state statutory tax rates. These differences result from the following:

 

   2026   2025   2024 
Loss before income taxes  $(25,145)  $(35,336)  $(631)
Statutory tax rate   26.5%   26.5%   26.5%
Expected income tax benefit (expense)   (6,664)   (9,364)   (167)
Permanent differences   719    (1,136)   175 
Federal and state tax credits   (288)   -    - 
Employee share compensation   -    -    228 
Goodwill impairment loss   -    4,827    1,087 
Adjustment to prior years provision versus statutory tax return   889    -    724 
Adjustment to prior years provision after carry back of tax credits and losses   (1,809)   -    - 
Changes in statutory, foreign tax, foreign exchange rates and other   183    223    (30)
Change in unrecognized temporary differences   6,121    1,230    929 
Total income tax expense (recovery)   (849)   (4,220)   2,946 
                
Current tax expense (recovery)   (477)   953    2,962 
Deferred tax expense (recovery)   (372)   (5,173)   (16)
Total income tax expense (recovery)  $(849)  $(4,220)  $2,946 

 

The components of the net deferred tax liability are as follows:

 

   2026   2025 
Deferred tax assets:          
Lease liabilities  $1,787   $1,820 
Loss carry forward   881    1,423 
Asset retirement obligation   353    330 
Total   3,021    3,573 
Deferred tax liabilities:          
Intangible assets   (3,184)   (3,948)
Derivative financial instruments   (105)   (82)
Property, plant and equipment   (3,211)   (3,517)
Right-of-use assets   (1,875)   (1,794)
Long-term debt   (111)   (67)
Total   (8,486)   (9,408)
Net deferred tax liabilities  $(5,465)   (5,835)

 

 

POWERBANK CORPORATION

Notes to Consolidated Financial Statements

(Expressed in thousands of Canadian dollars, except per share amounts and as otherwise indicated)

For the years ended June 30, 2026, 2025 and 2024

 

 

28.Income tax (continued):

 

   2026   2025 
Deferred tax liabilities resulted from acquisition of OFIT GM & OFIT RT  $(1,073)  $(1,073)
Deferred tax liabilities resulted from acquisition of Solar Flow Through Funds   (9,937)   (9,937)
Deferred tax recovery   5,545    5,175 
Net deferred tax liabilities  $(5,465)  $(5,835)

 

The unrecognized deductible temporary differences are attributable to the following:

 

   2026   2025 
Interest expense  $179   $- 
Lease liabilities   804    331 
Fair value change of warrant liabilities   289    - 
Loss carry forwards   49,873    13,719 
Property, plant and equipment   (1,855)   4,072 
Right-of-use assets   (670)   (306)
Long-term debt   (697)   (261)
Intangible assets   (3,818)   (3,487)
Foreign exchange   (1)   76 
Asset retirement obligation   (80)   - 
Passthrough interest   59    38 
Passthrough income   (668)   (441)
Solar tax credit   2,147    3,060 
Restricted interest and financing expenses   3,390    1,715 
Net deferred tax assets  $48,952   $18,516 

 

As of June 30, 2026, the Company has non-capital losses of approximately $50,588 (June 30, 2025 - $20,293) available that may be carried forward and applied against future income for Canadian income tax purposes. These non-capital losses expire between 2042 - 2045.

 

 

POWERBANK CORPORATION

Notes to Consolidated Financial Statements

(Expressed in thousands of Canadian dollars, except per share amounts and as otherwise indicated)

For the years ended June 30, 2026, 2025 and 2024