GDRZF 6-K
Gold Reserve Ltd (GDRZF)
Exhibit 99.1
GOLD RESERVE INC.
March 31, 2022
Interim Consolidated Financial Statements
U.S. Dollars
(unaudited)
| 1 |
GOLD RESERVE INC.
CONSOLIDATED BALANCE SHEETS
(Unaudited - Expressed in U.S. dollars)
|
March 31, 2022 |
December 31, 2021 | ||||||
| ASSETS | |||||||
| Current Assets: | |||||||
| Cash and cash equivalents (Note 3) | $ | $ | |||||
| Marketable securities (Note 4) | |||||||
| Income tax receivable (Note 9) | |||||||
| Prepaid expense and other | |||||||
| Total current assets | |||||||
| Property, plant and equipment, net (Note 5) | |||||||
| Right of use asset | |||||||
| Total assets | $ | $ | |||||
| LIABILITIES | |||||||
| Current Liabilities: | |||||||
| Accounts payable and accrued expenses (Note 2) | $ | $ | |||||
| Lease liability | |||||||
| Contingent value rights (Note 2) | |||||||
| Total current liabilities | |||||||
| Total liabilities | |||||||
| SHAREHOLDERS' EQUITY | |||||||
| Serial preferred stock, without par value | |||||||
| Authorized: | Unlimited | ||||||
| Issued: | |||||||
| Common shares | |||||||
| Class A common shares, without par value | |||||||
| Authorized: | Unlimited | ||||||
| Issued and outstanding: | 2022… | 2021… | |||||
| Contributed surplus | |||||||
| Stock options (Note 8) | |||||||
| Accumulated deficit | ( |
( | |||||
| Total shareholders' equity | |||||||
| Total liabilities and shareholders' equity | $ | $ | |||||
Contingencies (Note 2)
The accompanying notes are an integral part of the interim consolidated financial statements.
Approved by the Board of Directors:
/s/ James Michael Johnston /s/ James P. Geyer
| 2 |
GOLD RESERVE INC.
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS
(Unaudited - Expressed in U.S. dollars)
| Three Months Ended | ||||||||
| March 31, | ||||||||
| 2022 | 2021 | |||||||
| INCOME | ||||||||
| Interest income | $ | |
$ | | ||||
| Gain on marketable equity securities | ||||||||
| Foreign currency gain | ||||||||
| EXPENSES | ||||||||
| Corporate general and administrative (Note 2) | ||||||||
| Siembra Minera Project and related costs (Note 6) | ||||||||
| Exploration costs | ||||||||
| Legal and accounting | ||||||||
| Arbitration and settlement (Note 2) | ||||||||
| Equipment holding costs | ||||||||
| Net loss and comprehensive loss for the period | $ | ( |
$ | ( | ||||
|
|
||||||||
| Net loss per share, basic and diluted | $ | ( |
$ | ( | ||||
| Weighted average common shares outstanding, basic and diluted |
|
|
|
|
|
|
|
|
The accompanying notes are an integral part of the interim consolidated financial statements.
| 3 |
GOLD RESERVE INC.
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY
(Unaudited - Expressed in U.S. dollars)
| For the Three Months Ended March 31, 2022 and 2021 | |||||
| Common Shares | Contributed Surplus | Stock Options | Accumulated Deficit | ||
| Number | Amount | ||||
| Balance, December 31, 2021 | $ |
$ |
$ |
$ ( | |
| Net loss for the period | – | ( | |||
| Stock option compensation (Note 8) | – | ||||
| Balance, March 31, 2022 | $ |
$ |
$ |
$ ( | |
|
|
|||||
| Balance, December 31, 2020 | $ |
$ |
$ |
$ ( | |
| Net loss for the period | – | ( | |||
| Stock option compensation (Note 8) | – | ||||
| Balance, March 31, 2021 | $ |
$ |
$ |
$ ( | |
The accompanying notes are an integral part of the interim consolidated financial statements.
| 4 |
GOLD RESERVE INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited - Expressed in U.S. dollars)
| Three Months Ended | ||||||||
| March 31, | ||||||||
| 2022 | 2021 | |||||||
| Cash Flows from Operating Activities: | ||||||||
| Net loss for the period | $ | ( |
$ | ( | ||||
|
Adjustments to reconcile net loss to net cash used in operating activities: |
||||||||
| Stock option compensation | ||||||||
| Depreciation | ||||||||
| Gain on marketable equity securities | ( |
( | ||||||
| Changes in non-cash working capital: | ||||||||
| Net decrease in prepaid expense and other |
||||||||
| Net increase in payables and accrued expenses |
||||||||
| Net cash used in operating activities | ( |
( | ||||||
|
Cash Flows from Investing Activities: |
||||||||
| Net cash used in investing activities | ||||||||
|
Cash Flows from Financing Activities: |
||||||||
| Net cash used in financing activities | ||||||||
|
Change in Cash and Cash Equivalents: |
||||||||
| Net decrease in cash and cash equivalents | ( |
( | ||||||
| Cash and cash equivalents - beginning of period | ||||||||
| Cash and cash equivalents - end of period | $ | $ | ||||||
The accompanying notes are an integral part of the interim consolidated financial statements.
| 5 |
Note 1. The Company and Significant Accounting Policies:
Gold Reserve Inc. ("Gold Reserve," the "Company," "we," "us," or "our") is engaged in the business of acquiring, exploring and developing mining projects and was incorporated in 1998 under the laws of the Yukon Territory, Canada and continued to Alberta, Canada in September 2014.
Gold Reserve Inc. is the successor issuer to Gold Reserve Corporation which was incorporated in 1956. Management's primary activities have included: the advancement of the Siembra Minera project (the "Siembra Minera Project") (including the related social and humanitarian efforts) and corporate and legal activities associated with the collection of the unpaid balance of the Award and the Resolution (as defined herein) of the Bolivarian Republic of Venezuela (“Venezuela”) Ministry of Mines to revoke the mining rights in connection with the Siembra Minera Project, along with planned activities if there is a successful appeal or overturning of such Resolution.
The U.S. and Canadian governments have imposed various sanctions targeting Venezuela (the "Sanctions"). The Sanctions, in aggregate, essentially prevent any dealings with Venezuelan government or state-owned or controlled entities and prohibit directors, management and employees of the Company who are U.S. Persons from dealing with certain Venezuelan individuals or entering into certain transactions.
The Sanctions imposed by the U.S. government generally block all property of the government of Venezuela and prohibit directors, management and employees of the Company who are U.S. Persons (as defined by U.S. Sanction statutes) from dealing with the Venezuelan government and/or state-owned/controlled entities, entering into certain transactions or dealing with Specially Designated Nationals ("SDNs") and target corruption in, among other identified sectors, the gold sector of the Venezuelan economy,
The Sanctions imposed by the Canadian government include asset freezes and prohibitions on dealings with certain named Venezuelan officials under the Special Economic Measures (Venezuela) Regulations of the Special Economic Measures Act and the Justice for Victims of Corrupt Foreign Officials Regulations of the Justice for Victims of Corrupt Foreign Officials Act (Sergei Magnitsky Law),
The cumulative impact of the Sanctions continues to restrict the Company from working with those Venezuelan government officials responsible for the payment and transfer of funds associated with the Settlement Agreement which adversely impacts our ability to collect the remaining balance of the Award plus interest and/or amounts due pursuant to the Settlement Agreement from Venezuela. Even if we are successful in appealing or otherwise overturning the Resolution by the Venezuelan Ministry of Mines to revoke the mining rights in connection with the Siembra Minera Project, the Sanctions continue to restrict the Company from working with those Venezuelan government officials responsible for the operation of Siembra Minera (as defined herein) and the development of the Siembra Minera Project and, until Sanctions are lifted, would obstruct any ability for us to develop the Siembra Minera Project as originally planned.
Basis of Presentation
and Principles of Consolidation. These consolidated financial statements have been prepared in accordance with U.S. generally
accepted accounting principles ("U.S. GAAP"). The statements include the accounts of the Company, Gold Reserve Corporation and
three Barbadian subsidiaries one of which was formed to hold our equity interest in Empresa Mixta Ecosocialista Siembra Minera, S.A. (“Siembra
Minera”) which is beneficially owned
Cash and Cash Equivalents. We consider short-term, highly liquid investments purchased with an original maturity of three months or less to be cash equivalents for purposes of reporting cash equivalents and cash flows. The cost of these investments approximates fair value. We manage the exposure of our cash and cash equivalents to credit risk by diversifying our holdings into various major financial institutions. (See Note 3.)
Exploration and Development Costs. Exploration costs incurred in locating areas of potential mineralization or evaluating properties or working interests with specific areas of potential mineralization are expensed as incurred. Development costs of proven mining properties not yet producing are capitalized at cost and classified as capitalized development costs under property, plant and equipment. Mineral property acquisition costs are capitalized and holding costs of such properties are charged to operations during the period if no significant exploration or development activities are being conducted on the related properties. Upon commencement of production, capitalized exploration and development costs would be amortized based on the estimated proven and probable reserves benefited. Mineral properties determined to be impaired or that are abandoned are written-down to the estimated fair value. Carrying values do not necessarily reflect present or future values.
| 6 |
Property, Plant and Equipment. Property, plant and equipment is recorded at cost and are depreciated on a straight-line basis over their estimated useful lives, except for equipment not yet placed into use. Included in property, plant and equipment is certain equipment, relating to the Brisas Project that is not being depreciated as it is not in use. The ultimate recoverable value of this equipment may be different than management's current estimate. We have additional property, plant and equipment which are recorded at cost less accumulated depreciation. Replacement costs and major improvements are capitalized. Maintenance and repairs are charged to expense as incurred. The cost and accumulated depreciation of assets retired or sold are removed from the accounts and any resulting gain or loss is reflected in operations. Furniture, office equipment and leasehold improvements are depreciated using the straight-line method over five to ten years. The remaining property, plant and equipment are fully depreciated.
Impairment of Long-Lived Assets. We review long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of the assets may not be recoverable. If the sum of the expected future net cash flows to be generated from the use or eventual disposition of a long-lived asset (undiscounted and without interest charges) is less than the carrying amount of the asset, an impairment loss is recognized based on a determination of the asset's fair value. Fair value is generally determined by discounting estimated cash flows based on market participant expectations of those future cash flows, or applying a market approach that uses market prices and other relevant information generated by market transactions involving comparable assets.
Foreign Currency. The U.S. dollar is our (and our foreign subsidiaries') functional currency. Monetary assets and liabilities denominated in a foreign currency are translated into U.S. dollars at the rates of exchange in effect at the balance sheet dates. Non-monetary assets and liabilities are translated at historical rates and revenue and expense items are translated at average exchange rates during the reporting period, except for depreciation which is translated at historical rates. Translation gains and losses are included in the statement of operations.
Income Taxes. We use the liability method of accounting for income taxes. Deferred tax assets and liabilities are determined based on the differences between the tax basis of assets and liabilities and those amounts reported in the financial statements. The deferred tax assets or liabilities are calculated using the enacted tax rates expected to apply in the periods in which the differences are expected to be settled. Deferred tax assets are recognized to the extent that they are considered more likely than not to be realized.
Uncertain Tax Positions. We record uncertain tax positions based on a two-step process that separates recognition from measurement. The first step is determining whether a tax position has met the recognition threshold which requires that the Company determine if it is more likely than not that it will sustain the tax benefit taken or expected to be taken in the event of a dispute with taxing authorities. The second step, for those positions meeting the “more likely than not” threshold, is to recognize the largest amount of benefit that is greater than 50 percent likely to be realized upon settlement with taxing authorities. Management periodically evaluates positions taken in tax returns in situations in which applicable tax regulation is subject to interpretation. The Company establishes provisions where appropriate on the basis of amounts expected to be received from or paid to tax authorities.
Use of Estimates. The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.
Marketable Securities. The Company's marketable securities consist of equity securities, which are reported at fair value with changes in fair value included in the statement of operations.
Equity accounted investments. Investments in incorporated entities in which the Company has the ability to exercise significant influence over the investee are accounted for by the equity method.
| 7 |
Financial Instruments. Marketable securities are measured at fair value at each reporting date, with the change in value recognized in the statement of operations as a gain or loss. Cash and cash equivalents, deposits, advances and receivables are accounted for at amortized cost which approximates fair value (See Note 3). Accounts payable and contingent value rights are recorded at amortized cost which approximates fair value.
Note 2. Arbitral Award, Settlement Agreement and Mining Data Sale:
In October 2009 we initiated
a claim (the "Brisas Arbitration") under the Additional Facility Rules of the International Centre for the Settlement of Investment
Disputes ("ICSID") to obtain compensation for the losses caused by the actions of Venezuela that terminated our previous mining
project known as the "Brisas Project." On September 22, 2014, we were granted an Arbitral Award (the "Award") totaling
$
In July 2016, we signed
the Settlement Agreement, subsequently amended, whereby Venezuela agreed among other things to pay us a total of approximately $
To date, the Company has
received payments of approximately $
The interest rate provided for on any unpaid amounts pursuant to the Award is specified as LIBOR plus two percent. With the phase out of LIBOR, if and when it is possible to engage with the Venezuelan government, we expect that, if necessary, we will either come to an agreement with Venezuela as to an appropriate replacement or, alternatively, petition the court responsible for the enforcement of our Award judgement to rule on a new interest rate benchmark.
In addition to other constraints, the Sanctions restrict the Company from working with those Venezuelan government officials responsible for the payment and transfer of funds associated with the Settlement Agreement which adversely impacts our ability to collect the remaining balance of the Award plus interest and/or amounts due pursuant to the Settlement Agreement from Venezuela. The Company, with counsels’ assistance, continues to evaluate and pursue various options in regard to the Award and the Settlement Agreement.
We have Contingent Value
Rights ("CVRs") outstanding that entitle the holders to an aggregate of
We maintain a bonus plan
(the "Bonus Plan") which is intended to compensate the participants, including executive officers, employees, directors and
consultants for their past and present contributions to the Company. The bonus pool under the Bonus Plan is comprised of the gross proceeds
collected or the fair value of any consideration realized less applicable taxes multiplied by
| 8 |
Due to U.S. and Canadian Sanctions and the uncertainty of transferring the remaining amounts due from Venezuela to bank accounts outside of Venezuela, management only considers those funds received by the Company into its North American bank accounts as funds available for purposes of the CVR and Bonus Plan cash distributions.
Following receipt, if any, of additional funds pursuant to the Settlement Agreement and after applicable payments to CVR holders and Bonus Plan participants, we expect to distribute to our shareholders a substantial majority of any remaining amounts, subject to applicable regulatory requirements and retaining sufficient reserves for operating expenses, contractual obligations, accounts payable and income taxes, and any obligations arising as a result of the collection of the remaining amount owed by Venezuela.
Note 3. Cash and Cash Equivalents:
Cash and Cash Equivalents
| March 31, | December 31, | |||||||
| 2022 | 2021 | |||||||
| Bank deposits | $ | $ | ||||||
| Short term investments | ||||||||
| Total | $ | $ |
Short term investments include money market funds and U.S. treasury bills which mature in three months or less.
Note 4. Marketable Securities:
| March 31, | December 31, | |||||||
| Schedule of Marketable Securities Value | 2022 | 2021 | ||||||
| Equity securities | ||||||||
| Fair value and carrying value at beginning of period | $ | $ | ||||||
| Increase in fair value | ||||||||
| Fair value and carrying value at balance sheet date | $ | $ | ||||||
Marketable equity securities are classified as trading securities and accounted for at fair value, based on quoted market prices with unrealized gains or losses recorded in the Consolidated Statements of Operations.
Accounting Standards Codification ("ASC") 820 establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value into three broad levels: Level 1 inputs are quoted prices in active markets for identical assets or liabilities, Level 2 inputs are inputs other than quoted prices included within Level 1 that are directly or indirectly observable for the asset or liability and Level 3 inputs are unobservable inputs for the asset or liability that reflect the entity's own assumptions. The fair values of the Company's marketable equity securities as at the balance sheet date are based on Level 1 inputs.
Note 5. Property, Plant and Equipment:
| Accumulated | ||||||
| Cost | Depreciation | Net | ||||
| March 31, 2022 | ||||||
| Machinery and equipment | $ | $ | $ | |||
| Furniture and office equipment | ( |
|||||
| Transportation equipment | ( |
|||||
| Leasehold improvements | ( |
|||||
| Mineral property | ||||||
| $ | $ | ( |
$ |
| 9 |
| Accumulated | ||||||
| Cost | Depreciation | Net | ||||
| December 31, 2021 | ||||||
| Machinery and equipment | $ | $ | $ | |||
| Furniture and office equipment | ( |
|||||
| Transportation equipment | ( |
|||||
| Leasehold improvements | ( |
|||||
| Mineral property | ||||||
| $ | $ | ( |
$ |
Machinery and equipment consists of a semi-autogenous grinding (SAG) mill and minor infrastructure equipment originally intended for use on the Brisas Project. We evaluate our equipment and mineral property to determine whether events or changes in circumstances have occurred that may indicate that the carrying amount may not be recoverable. We regularly obtain comparable market data for similar equipment as evidence that our equipment’s fair value less cost to sell is in excess of the carrying amount. No impairment write-downs of property, plant and equipment were recorded during the three months ended March 31, 2022 and 2021.
In August 2016, we executed
the Contract for the Incorporation and Administration of the Mixed Company with the government of Venezuela and in October 2016, together
with an affiliate of the government of Venezuela, we incorporated Siembra Minera by our purchasing shares in Siembra Minera for a nominal
amount. The primary purpose of this entity is to develop the Siembra Minera Project, as defined herein. Siembra Minera is beneficially
owned 55% by Corporacion Venezolana de Mineria, S.A., a Venezuelan government corporation, and 45% by Gold Reserve. Siembra Minera was
granted by the government of Venezuela certain gold, copper, silver and other strategic mineral rights (primarily comprised of the historical
Brisas and Cristinas areas) contained within Bolivar State comprising the Siembra Minera Project (which has a twenty year term with two
ten year extensions) and was, among other things authorized to carry on its business, pay a net smelter return royalty to Venezuela on
the future sale of gold, copper, silver and any other strategic minerals over the life of the Siembra Minera Project and provide net profits
participation based on the sales price of gold per ounce. A number of authorizations, which still have not been provided by the government,
are critical to the future operation and economics of the Siembra Minera Project. Pursuant to the Settlement Agreement (as described in
Note 2), both parties will retain their respective interest in Siembra Minera in the event all of the agreed upon Settlement Agreement
payments are not made by Venezuela. Project expenditures incurred in 2022 and 2021 primarily related to costs associated with the retention
of technical consultants and, to a lesser degree, work related to compliance and reporting obligations, maintenance of the technical data
base, and costs of social work programs. The Company has directly incurred the costs associated with the Siembra Minera Project which,
beginning in 2016 through March 31, 2022, amounted to a total of approximately $
In March 2022, the Ministry of Mines of Venezuela (the “Ministry”) issued a resolution to revoke the mining rights of Siembra Minera for alleged non-compliance with certain Venezuelan mining regulations (the “Resolution”). Siembra Minera filed a reconsideration request with the Ministry asking for the Resolution to be overturned. If the Resolution is not overturned by the Ministry, Siembra Minera has the right to challenge the validity of the Resolution with the Venezuelan Supreme Court of Justice. We are considering and working in earnest with respect to all legal rights and remedies that may be available to us under Venezuelan and other laws, under the Settlement Agreement and otherwise including potential or actual appeals or contests with respect thereto (the related actions by us, “Appeals”). Even if the Resolution is successfully overturned or annulled, the Sanctions, along with other constraints, could adversely impact our ability to finance, develop and operate the Siembra Minera Project or collect or repatriate sums under the Settlement Agreement.
Note 7. 401(k) Plan:
The 401(k) Plan, formerly
entitled the KSOP Plan, was originally adopted in 1990 and was most recently restated effective January 1, 2021. The purpose of the 401(k)
Plan is to offer retirement benefits to eligible employees of the Company. The 401(k) Plan provides for a salary deferral, a non-elective
contribution of 3% of each eligible Participant’s annual compensation and discretionary contributions. Allocation of Class A common
shares or cash to participants' accounts, subject to certain limitations, is at the discretion of the Board. Cash contributions for the
2021 plan year were approximately $
| 10 |
Equity Incentive Plan
The Company's equity incentive
plan provides for the grant of stock options to purchase the Company’s Class A common shares. During the second quarter of 2021,
the number of shares available under the plan was increased to a maximum of
Stock option transactions for the three months ended March 31, 2022 and 2021 are as follows:
| 2022 | 2021 | |||||
| Shares | Weighted Average Exercise Price | Shares | Weighted Average Exercise Price | |||
| Options outstanding - beginning of period | $ |
$ |
||||
| Options granted | - | - | |
|
||
| Options outstanding - end of period | $ |
$ |
||||
| Options exercisable - end of period | $ |
$ |
||||
The following table relates to stock options at March 31, 2022:
| Outstanding Options | Exercisable Options | ||||||||
| Exercise Price | Number | Weighted Average Exercise Price | Aggregate Intrinsic Value | Weighted Average Remaining Contractual Term (Years) | Number | Weighted Average Exercise Price | Aggregate Intrinsic Value | Weighted Average Remaining Contractual Term (Years) | |
| - | $ |
$ |
$ |
||||||
| - | |
$ |
|
||||||
| - | $ |
||||||||
| - | $ |
||||||||
| - | $ |
$ |
$ |
||||||
The Company granted NIL
and options during the three-month periods ended March 31, 2022 and 2021, respectively. The Company recorded non-cash compensation
during the three months ended March 31, 2022 and 2021 of $
The weighted average fair value of the options granted during the three months ended March 31, 2021 was calculated as . The fair value of options granted was determined using the Black-Scholes model based on the following weighted average assumptions:
| Risk free interest rate | % | |||
| Expected term | years | |||
| Expected volatility | % | |||
| Dividend yield |
The risk free interest rate is based on the US Treasury rate on the date of grant for a period equal to the expected term of the option. The expected term is based on historical exercise experience and projected post-vesting behavior. The expected volatility is based on historical volatility of our common stock over a period equal to the expected term of the option.
| 11 |
Change of Control Agreements
The Company maintains
change of control agreements with certain officers and employees. A Change of Control is generally defined as one or more of the following:
the acquisition by any individual, entity or group, of beneficial ownership of 25 percent of the voting power of the Company’s outstanding
Common Shares; a change in the composition of the Board that causes less than a majority of the current directors of the Board to be members
of the incoming board; reorganization, merger or consolidation or sale or other disposition of all or substantially all of the assets
of the Company; liquidation or dissolution of the Company; or any other event the Board reasonably determines constitutes a Change of
Control. As of March 31, 2022, the amount payable under the change of control agreements, in the event of a Change of Control, was approximately
$
Milestone bonuses
The Company implemented
an incentive bonus plan in the fourth quarter of 2021 which involves senior management whose cash compensation was reduced as part of
a three-year cost reduction program. The plan provides for the payment of a bonus upon the achievement of specific objectives related
to the development of the Company’s business and prospects in Venezuela within certain time frames. As of March 31, 2022, the amount
payable under the plan in the event of the achievement of the specific objectives was approximately $
Note 9. Income Tax:
Income tax benefit for the three months ended March 31, 2022 and 2021 differs from the amount that would result from applying Canadian tax rates to net income before taxes. These differences result from the items noted below:
| 2022 | 2021 | |||
| Amount | % | Amount | % | |
| Income tax benefit based on Canadian tax rates | $ |
$ |
||
| Decrease due to: | ||||
| Different tax rates on foreign subsidiaries | ( |
( |
( |
( |
| Non-deductible expenses | ( |
( |
( | |
| Change in valuation allowance and other | ( |
( |
( |
( |
| $ |
$ |
|||
No current income tax was recorded by the Company during the three months ended March 31, 2022 and 2021. The Company recorded a valuation allowance to reflect the estimated amount of the deferred tax assets which may not be realized, principally due to the uncertainty of utilization of net operating losses and other carry forwards prior to expiration. The valuation allowance for deferred tax assets may be reduced if our estimate of future taxable income changes. As part of the US government response to the COVID-19 pandemic, the U.S. Congress passed the CARES act in late March 2020 which, among other things, allowed companies to carryback losses incurred in 2018, 2019 and 2020. The Company recorded an income tax benefit in prior years to reflect the carryback of U.S. taxable losses incurred in 2020 and 2019 to offset taxable income in 2018.
The Company has an income
tax receivable of $
| 12 |
The components of the Canadian and U.S. deferred income tax assets and liabilities as of March 31, 2022 and December 31, 2021 were as follows:
| March 31, | December 31, | |||
| 2022 | 2021 | |||
| Deferred income tax assets | ||||
| Net operating loss carry forwards | $ | $ | ||
| Property, Plant and Equipment | ||||
| Other | ||||
| Valuation allowance | ( |
( | ||
| $ | |
$ | | |
| Deferred income tax liabilities | ||||
| Other | ( |
( | ||
| Net deferred income tax asset | $ | $ |
At March 31, 2022, we had the following U.S. and Canadian tax loss carry forwards stated in U.S. dollars.
| U.S. | Canadian | Expires | ||
| $ | $ |
2026 | ||
| 2027 | ||||
| 2028 | ||||
| 2029 | ||||
| 2030 | ||||
| 2031 | ||||
| 2032 | ||||
| 2033 | ||||
| 2034 | ||||
| 2035 | ||||
| 2036 | ||||
| 2037 | ||||
| 2038 | ||||
| 2039 | ||||
|
|
2040 2041 2042 | |||
| - | ||||
| $ | $ |