Annual report [Section 13 and 15(d), not S-K Item 405]

Income Taxes

v3.25.1
Income Taxes
 12 Months Ended
Dec. 31, 2024
Income Taxes  
Income Taxes

22.Income Taxes

Income (loss) before income taxes on which the provision for income taxes was computed was as follows:

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Year Ended December 31, 

Income (Loss) before Income Tax Provision

    

2024

    

2023

​

​

​

​

​

United States

 

(54,757)

 

(27,263)

Canada

 

1,568

 

(3,393)

​

 

(53,189)

 

(30,656)

​

There was no federal or state income tax provision (benefit) in the years presented above.

Deferred income taxes reflect the net tax effects of (a) temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes, and (b) operating losses and tax credit carryforwards.

The tax effects of significant items comprising the Company’s deferred tax assets and liabilities are as follows:

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As of December 31, 

Deferred Tax Assets

​

2024

    

2023

​

​

​

​

​

Deferred tax assets

    

​

    

​

Compensation accruals

 

145

 

59

ITC credits

​

235

​

255

Asset retirement obligation

​

10,332

​

7,662

Equity compensation

​

822

​

611

Net operating loss

​

60,235

​

47,715

Lease liability

​

2

​

3

Fixed assets

​

7,571

​

4,821

Cumulative eligible capital deductions

​

20

​

22

Share issues cost

​

1,537

​

944

Total deferred tax assets

​

80,899

​

62,092

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​

​

​

​

Deferred tax liabilities

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​

​

​

Unrealized gain/loss

​

(1)

​

(1)

ROU asset

​

(2)

​

(3)

Total deferred tax liabilities

​

(3)

​

(4)

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​

​

​

​

Valuation allowance

​

(80,896)

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(62,088)

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​

 

​

Net deferred taxes

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-

​

-

​

ASC 740 requires that the tax benefit of net operating losses, temporary differences and credit carryforwards be recorded as an asset to the extent that management assesses that realization is “more likely than not.” Realization of the future tax benefits is dependent on the Company’s ability to generate sufficient taxable income within the carryforward period. Because of the Company’s recent history of operating losses, management believes that recognition of the deferred tax assets arising from the above-mentioned future tax benefits is currently not likely to be realized and, accordingly, has provided a valuation allowance.

The valuation allowance increased by $18,808 and $6,775 during 2024 and 2023, respectively.

Net operating losses and tax credit carryforwards as of December 31, 2024, are as follows:

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Income Tax Loss Carryforwards

    

Gross Amounts

    

Expiration Years

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​

​

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Net operating losses, federal (Pre-January 1, 2018)

 

79,699

 

2029 - 2035

Net operating losses, federal (Post-December 31, 2017)

 

97,061

 

No expirations

Net operating losses, state

 

144,079

 

Varies by state

Net operating losses, Canada

 

26,770

 

2026 - 2044

Tax credits, foreign

 

235

 

2025-2028

​

The effective tax rate of the Company’s provision (benefit) for income taxes differs from the federal statutory rate as follows:

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Year Ended December 31, 

Income Tax Rate Reconciliation

    

2024

    

2023

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​

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Statutory rate

 

26.5

%  

 

26.5

%  

State tax

 

12.6

%  

 

(2.0)

%  

Foreign tax

 

(5.6)

%  

 

(4.7)

%  

Change in valuation allowance

 

(38.6)

%  

 

(21.2)

%  

Nondeductible items

 

2.5

%  

 

(1.5)

%  

True-ups/other

 

—

%  

 

(0.1)

%  

Share issuance costs

 

2.4

%  

 

2.8

%  

Stock compensation

 

0.2

%  

 

0.2

%  

​

 

0.0

%  

 

0.0

%  

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​

Year Ended December 31, 

Income Tax Reconciliation

    

2024

    

2023

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​

​

​

​

Statutory rate

 

(13,752)

​

(8,141)

State tax

 

(6,547)

​

617

Foreign tax

​

2,940

​

1,433

Change in valuation allowance

​

20,037

​

6,512

Nondeductible items

 

(1,318)

​

477

True-ups/other

 

(1)

​

31

Share of issuance costs

 

(1,250)

​

(856)

Stock compensation

 

(109)

​

(73)

​

 

-

​

-

​

The Company follows a comprehensive model for recognizing, measuring, presenting, and disclosing uncertain tax positions taken or expected to be taken on a tax return. Tax positions must initially be recognized in the financial statements when it is more likely than not the position will be sustained upon examination by the tax authorities. Such tax positions must initially and subsequently be measured as the largest amount of tax benefit that has a greater than 50% likelihood of being realized upon ultimate settlement with the tax authority assuming full knowledge of the position and relevant facts.

The Company currently has no uncertain tax positions and is therefore not reflecting any adjustments for such in its deferred tax assets.

The Company’s policy is to account for income tax related interest and penalties in income tax expense in the accompanying Consolidated Statements of Operations. There have been no income tax related interest or penalties assessed or recorded in the years ending December 31, 2024 and 2023.

Other comprehensive loss was not subject to income tax effects.