v3.26.1
Income Taxes
 12 Months Ended
Mar. 31, 2026
Income Tax Disclosure [Abstract]  
Income Taxes
14.
Income Taxes

Provision for Income Taxes

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.

Net income (loss) before tax expense was comprised of the following for the periods indicated (in thousands):

 

 

Year Ended March 31,

 

 

 

2026

 

 

2025

 

United States

 

$

(10,011

)

 

$

(10,484

)

Canada

 

 

10,133

 

 

 

6,968

 

Income (Loss) before income tax

 

$

122

 

 

$

(3,516

)

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):

 

 

Year Ended March 31,

 

 

 

2026

 

 

2025

 

Income tax (benefit) at statutory rate (Canada)

 

$

18

 

 

15

 %

 

$

(527

)

 

15

 %

Impact of Canadian provincial rate

 

 

-

 

 

-

 %

 

 

-

 

 

-

 %

Nontaxable or nondeductible items

 

 

-

 

 

-

 %

 

 

338

 

 

(10

)%

Increase in valuation allowance

 

 

1,204

 

 

987

 %

 

 

1,706

 

 

(49

)%

Nontaxable gain on warrant obligations

 

 

(3,675

)

 

(3,012

)%

 

 

(3,291

)

 

94

 %

Change in statutory, foreign exchange rates and other

 

 

(175

)

 

(143

)%

 

 

-

 

 

-

 %

Other

 

 

(127

)

 

(104

)%

 

 

69

 

 

(2

)%

Foreign income tax effects

 

 

 

 

 

 

 

 

 

 

United States of America

 

 

 

 

 

 

 

 

 

 

Tax rate differential

 

 

601

 

 

493

 %

 

 

629

 

 

(18

)%

Nontaxable or nondeductible items

 

 

6

 

 

5

 %

 

 

-

 

 

-

 %

Increase in valuation allowance

 

 

1,858

 

 

1,523

 %

 

 

2,137

 

 

(61

)%

Adjustments to prior years' provision

 

 

290

 

238 %

 

 

 

(1,061

)

30 %

 

Income tax benefit, net

 

$

-

 

 

-

 %

 

$

-

 

 

-

 %

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

 

 

As of March 31,

 

 

 

2026

 

 

 

2025

 

Non-capital loss carryforward

 

$

8,448

 

 

 

$

7,449

 

Basis differences in fixed assets

 

 

(769

)

 

 

 

(990

)

Intangible assets

 

 

2,611

 

 

 

 

766

 

Accruals and reserves

 

 

226

 

 

 

 

233

 

Share issuance costs

 

 

1,389

 

 

 

 

1,163

 

Interest limitation

 

 

-

 

 

 

 

237

 

Capital losses

 

 

2

 

 

 

 

2

 

 

 

11,907

 

 

-

 

 

8,860

 

Less: Valuation allowance

 

 

(11,907

)

 

 

 

(8,860

)

Net deferred tax assets

 

$

-

 

 

 

$

-

 

As of March 31, 2026, the Company had non-capital tax loss carryforwards in Canada of approximately $19.9 million which can be applied to reduce future Canadian taxable income and will expire between 2031 and 2046. Additionally, the Company had net operating tax loss carryforwards in the United States of $14.7 million, which may be carried forward indefinitely to reduce future U.S. taxable income. The valuation allowance increased $3.1 million during the year ended March 31, 2026.