Annual report pursuant to Section 13 and 15(d)

Income Tax

v3.23.3
Income Tax
 12 Months Ended
Aug. 31, 2023
Income Tax  
Income Tax

13. Income Taxes

 

The following table reconciles the income tax benefit at the U.S. Federal statutory rate to income tax benefit at the Company’s effective tax rates as at August 31, 2023 and 2022:

 

 

 

August 31

 2023

 

 

August 31

 2022

 

 

 

$

 

 

$

 

Loss before taxes

 

 

 (6,712,525 )

 

 

 (7,383,653 )

Expected income tax recovery

 

 

 (1,427,529 )

 

 

 (1,619,854 )

Non-deductible items

 

 

 (831 )

 

 

 (280,155 )

Change in estimates

 

 

 4,271

 

 

 

 (44,867 )

Effect of changes in foreign and long-term tax rates

 

 

 -

 

 

 

 23,625

 

Change in valuation allowance

 

 

 1,432,305

 

 

 

 1,921,251

 

Total income taxes

 

 

 8,216

 

 

 

 -

Deferred taxes reflect the tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes. Deferred tax assets at August 31, 2023 and 2022 are comprised of the following:

 

 

 

August 31

 2023

 

 

August 31

 2022

 

 

 

$

 

 

$

 

Non-capital losses

 

 

 8,637,353

 

 

 

 7,747,485

 

Marketable securities

 

 

 (14,051 )

 

 

 118,175

 

Stock based compensation

 

 

 650,778

 

 

 

 -

 

R&D

 

 

 371,326

 

 

 

 -

 

PPE and intangibles

 

 

 (64,569 )

 

 

 -

 

Total deferred tax assets                 

 

 

 9,580,837

 

 

 

 7,865,660

 

Valuation Allowance

 

 

 (9,580,837 )

 

 

 (7,865,660 )

Net Deferred tax assets                 

 

 

 -

 

 

 

 -

 

 

The Company has net operating loss carry-forwards of approximately $40 million which may be carried forward to apply against future year income tax for U.S. tax purposes.