v3.25.4
Income Taxes
 6 Months Ended 12 Months Ended
Sep. 30, 2025
Mar. 31, 2025
Income Tax Disclosure [Abstract]    
Income Taxes

 

13. Income Taxes

 

Provision for Income Taxes

 

Schedule of Reconciliation of the Statutory Versus Effective Rates

Schedule of Unrecorded Deferred Tax Assets

 

The Company is incorporated in and subject to taxation in Canada and provincially British Columbia. As the Company primarily operates through its United States subsidiary, with its operations headquarters in Texas and its initial commercial operations in Utah, these jurisdictions are also subject to taxation. The provision for income tax (benefit) differs from the amount that would have resulted by applying the combined Canadian federal and provincial statutory tax rates due to the impact of United States and state income taxes, as well as certain non-deductible expenses. As the Company has not generated net taxable income since inception, the deferred tax assets are fully offset by a valuation allowance and no tax benefit has been included in the condensed consolidated financial statements.

 

13. Income Taxes

 

Provision for Income Taxes

 

The provision for income tax (benefit) differs from the amount that would have resulted by applying the combined Canadian federal and provincial statutory tax rates. A reconciliation of the statutory versus effective rates are as follows (amounts in thousands):

 

  $(949)   (27)%  $(2,298)   (27)%
   For the Year Ended March 31, 
   2025   2024 
Income (tax benefit) at statutory rate (Canada)  $(949)   (27)%  $(2,298)   (27)%
Change in statutory, foreign exchange rates and other   -    -%   703    8%
Permanent differences   338    10%   159    2%
Share issuance costs   -    -%   (142)   (2)%
Adjustments to prior years’ provision   (1,061)   (30)%   1,578    19%
Non taxable gain on warrant obligations   (3,291)   (94)%   -    -%
Increase in valuation allowance (Canada)   4,265    121%   -    -%
US-Canadian rate differential   629    18%   -    -%
Other   69   2%   -    -%
Income tax benefit, net  $-    -%  $-    -%

 

 

International Battery Metals Ltd.

Notes to the Consolidated Financial Statements

For the Years Ended March 31, 2025 and 2024

 

The significant components of the Company’s unrecorded deferred tax assets are as follows (in thousands):

 

 

   2025   2024 
   As of March 31, 
   2025   2024 
Non-capital loss carryforward  $7,449   $3,452 
Basis differences in fixed assets   (990)   128 
Intangible assets   766    812 
Accruals and reserves   233   -
Share issuance costs   1,163    202 
Interest limitations   

237

    - 
Capital losses   2    1 
Gross deferred tax assets   8,860    4,595 
Less: valuation allowance   (8,860)   (4,595)
Net deferred tax assets  $-   $- 

 

As of March 31, 2025, the Company had non-capital tax loss carryforwards in Canada of approximately $17.6 million which can be applied to reduce future Canadian taxable income and will expire between 2031 and 2045. Additionally, the Company had net operating tax loss carryforwards in the United States of $13.2 million, which may be carried forward indefinitely to reduce future U.S. taxable income.

 

As of March 31, 2025, the Company has unrecognized deferred tax liability of approximately $1.5 million due to the timing differences arising on the initial recognition of the acquisition of all the issued and outstanding shares of a subsidiary acquired in 2018.