Annual report pursuant to Section 13 and 15(d)

Income Taxes (Tables)

v3.22.4
Income Taxes (Tables)
12 Months Ended
Dec. 31, 2022
Income Tax Disclosure [Abstract]  
Schedule of Income (Losses) before Income Tax, Domestic and Foreign
Income (losses) before income taxes for the years ended December 31, 2022, 2021 and 2020 was as follows:
(in thousands) 2022 2021 2020
Canada $ (112,359) $ (180,374) $ (61,024)
Foreign 6,007  168  (41,750)
$ (106,352) $ (180,206) $ (102,774)
Schedule of Components of Income Tax Expense (Benefit)
The components of income tax expense (benefit) consisted of the following for the years ended December 31, 2022, 2021 and 2020:
(in thousands) 2022 2021 2020
Current:
Canada $   $ —  $ — 
Foreign 1,828  760  (94)
1,828  760  (94)
Deferred:
Canada   —  — 
Foreign   —  — 
Total deferred   —  — 
Income tax expense (benefit) $ 1,828  $ 760  $ (94)
Schedule of Effective Income Tax Rate Reconciliation The provision for income taxes varied from the income taxes provided based on the Canadian statutory rate of 26.7%, 26.8%, and 26.8% for the years ending December 31, 2022, 2021 and 2020, respectively. The Company's increase in tax expense is primarily driven by withholding tax payments of $1.2 million paid during 2022.
2022 2021 2020
Canada statutory income tax benefit 26.7  % 26.8  % 26.8  %
Effect of tax rates on foreign jurisdictions 0.3  —  (2.4)
Withholding taxes (1.1) —  — 
Impact of future rates and tax rate changes (0.1) (0.1) 6.1 
Foreign tax credit 1.1  —  — 
Non-deductible share-based compensation (8.1) (4.5) (4.5)
Change in valuation allowance (21.5) (21.8) (26.0)
Scientific Research and Experimental Development (SRED) 1.1  0.3  0.4 
Other (0.1) (1.1) (0.3)
Effective tax rate (1.7) % (0.4) % 0.1  %
Schedule of Deferred Tax Assets and Liabilities
The net deferred tax assets (liabilities) consisted of the following for the years ending December 31, 2022 and 2021:
(in thousands) 2022 2021
Deferred tax assets:
Net operating loss carry-forwards $ 141,020  $ 120,274 
Share issue costs 4,209  6,016 
Intangible assets 1,400  1,086 
SRED (Scientific Research and Experimental Development) 7,462  6,059 
Capitalized research and development 1,663  — 
Deferred compensation 3,391  3,980 
Accruals 2,887  2,653 
Other 4,287  3,473 
Gross deferred tax assets 166,319  143,541 
Valuation allowance (164,514) (141,348)
Total deferred tax assets 1,805  2,193 
Deferred tax liabilities:
Other (1,128) (1,356)
Property and equipment and intangible assets (677) (837)
Total deferred tax liabilities (1,805) (2,193)
Net deferred tax assets (liabilities) $   $ —