General form of registration statement for all companies including face-amount certificate companies

Note 19 - Income Tax

v3.24.3
Note 19 - Income Tax
 12 Months Ended
Dec. 31, 2023
Notes to Financial Statements  
Income Tax Disclosure [Text Block]

NOTE 19: INCOME TAX

 

The total provision for income taxes differs from the amount which would be computed by applying the US income tax rate to loss before income taxes. The reasons for these differences are as follows:

 

   

December 31

  
   

2023

    

2022

  

Statutory income tax rate

     27.60 %     28.51 %
                 

Statutory income tax recovery

   $ (718 )   $ (1,113 )
                 

Increase (decrease) in income taxes

                

Non-deductible option expenses

     135       19  

Taxable capital gain on sale of investment and equipment

     -       -  

Difference in foreign tax rates

     30       200  

US state tax

     1       (1 )

Change in valuation allowance

     553       895  

Income tax expense (recovery)

  $ 1     $ -  

 

The Company recognizes deferred tax assets and liabilities for the expected future tax consequences of temporary differences between the carrying amounts and the tax basis of assets and liabilities and certain carry-forward balances.

 

The primary components of the deferred tax assets and liabilities are as follows, for the periods indicated below:

 

   

December

  
   

2023

    

2022

  
   

$

    

$

  

Deferred tax assets

                

Non-capital loss carry-forwards from Canada

     -       1  

Non-capital loss carry-forwards from US

     1,418       1,576  

Non-capital loss carry-forwards from Israel

     15,449       17,479  

Stock option

     95       17  

R&D expenditures

     236       424  

Reserves and others

     127       -  
      17,325       19,497  
                 

Valuation Allowances for deferred tax assets

     (17,325 )     (19,497 )

Net deferred tax assets

    -       -  

 

The net deferred tax assets have been offset by a valuation allowance because it is not more likely than not the Company will realize the benefit of these deferred tax assets. The Company did not recognize any tax benefits as of December 31, 2023 and December 31, 2022.

 

At December 31, 2023, the Company's Canadian, US, and Israeli non-capital income tax losses, the benefit of which has not been recognized on the consolidated financial statements, expire as follows:

 

   

Canada

   

US

    

Israel

  

2034

   $ -     $ 501     $ -  

2035

     -       1,767       -  

2036

     -       2,872       -  

2037

     -       -       -  

2038

     -       -       -  

2039

     -       -       -  

2040

     -       -       -  

2041

     -       -       -  

2042

     2       -       -  

Indefinite

     -       1,293       67,170  
    $ 2     $ 6,433     $ 67,170  

 

At December 31, 2023, the Company had a cumulative carry-forward pool of Israeli Research and Development expenditures in the amount of $889 (2022: $1,823) which will be amortized within the next three years.

 

The Company files unconsolidated federal income tax returns domestically and in foreign jurisdictions. The Company has open tax years from 2018 to 2023 with tax jurisdictions including Canada, U.S, and Israel. These open years contain certain matters that could be subject to differing interpretations of applicable tax laws and regulations, as they relate to amount, timing, or inclusion of revenues and expenses.