The
Company’s income tax (benefit) provision consisted of the following components (in thousands):
SCHEDULE
OF INCOME TAX BENEFIT
| | |
2025 | | |
2024 | |
| | |
| | |
| |
| Current | |
| | | |
| | |
| Federal | |
$ | - | | |
$ | - | |
| State | |
| 137 | | |
| 374 | |
| Current | |
| 137 | | |
| 374 | |
| Deferred | |
| | | |
| | |
| Federal | |
| 4,282 | | |
| 5,597 | |
| State | |
| 449 | | |
| (107 | ) |
| Deferred | |
| 4,731 | | |
| 5,490 | |
| | |
| | | |
| | |
| Total | |
$ | 4,868 | | |
$ | 5,864 | |
Kolibri
Global Energy Inc.
Notes
to Consolidated Financial Statements
For
the Years Ended December 31, 2025 and 2024
(Audited,
expressed in thousands of United States dollars) |
The
provision for income taxes reported differs from the amounts computed by applying the US federal income tax rates to the net loss before
tax provision due to the following:
SCHEDULE
OF INCOME TAX RATES TO THE NET LOSS BEFORE TAX PROVISION
| | |
2025 | | |
2024 | |
| | |
| | |
| |
| Net income before income tax | |
$ | 20,345 | | |
$ | 23,979 | |
| Statutory tax rate | |
| 21.00 | % | |
| 21.00 | % |
| Net income After Tax | |
| 4,272 | | |
| 5,036 | |
| Add (deduct): | |
| | | |
| | |
| State tax expense | |
| 588 | | |
| 268 | |
| Return to provision | |
| - | | |
| (14 | ) |
| Prior period deferred adjustments | |
| 24 | | |
| 348 | |
| Foreign taxes | |
| 216 | | |
| 226 | |
| Permanent differences | |
| (232 | ) | |
| - | |
| Income tax expense | |
$ | 4,868 | | |
$ | 5,864 | |
Deferred
tax liabilities and assets are attributable to the following:
SCHEDULE
OF DEFERRED TAX LIABILITIES AND ASSETS
| | |
2025 | | |
2024 | |
| Deferred income tax liabilities(1): | |
| | | |
| | |
| Property, plant
and equipment(1) | |
$ | (43,240 | ) | |
$ | (39,172 | ) |
| Commodity contracts(1) | |
| (65 | ) | |
| (189 | ) |
| | |
| | | |
| | |
| Deferred tax assets: | |
| | | |
| | |
| Stock based compensation | |
| 278 | | |
| 835 | |
| Asset retirement obligations | |
| 527 | | |
| 461 | |
| Leases | |
| 11 | | |
| - | |
| Accrued bonus | |
| 229 | | |
| - | |
| Other | |
| 1 | | |
| 15 | |
| Loss
carry-forward | |
| 28,176 | | |
| 29,349 | |
| Deferred
tax assets and liabilities | |
$ | (14,083 | ) | |
$ | (8,701 | ) |
| (1) |
A
total of $651 of the change in deferred tax liabilities was recognized in equity as it relates to stock based
compensation. |
Unrecognized
deferred tax assets
Deferred
tax assets have not been recognized for the following deductible temporary differences:
SCHEDULE
OF UNRECOGNIZED DEFERRED TAX ASSETS
| | |
2025 | | |
2024 | |
| | |
| | |
| |
| Property, plant and equipment | |
$ | 427 | | |
$ | 407 | |
| Loss carry-forward | |
| 23,128 | | |
| 20,946 | |
| Capital losses | |
| 10,625 | | |
| 10,141 | |
| Unrecognized
deferred tax assets | |
$ | 34,180 | | |
$ | 31,494 | |
Kolibri
Global Energy Inc.
Notes
to Consolidated Financial Statements
For
the Years Ended December 31, 2025 and 2024
(Audited,
expressed in thousands of United States dollars) |
Deferred
tax assets have not been recognized in respect of these items because it is not probable that future taxable profits will be available
against which they can be utilized.
The
Company has net operating losses carried forward which may be available to offset future income for income tax purposes expiring over
the periods 2028 to 2039. The Company has net operating losses of approximately $106 million in the US, $147 million in US States and
$23 million in Canada. The Canada net operating losses are unrecognized.
The
Company has temporary differences associated with its investments in its foreign subsidiaries. The Company has no deferred tax liabilities
in respect of these temporary differences.
|