Annual reports filed by certain Canadian issuers pursuant to Section 15(d) and Rule 15d-4

TAXATION (Tables)

v3.22.1
TAXATION (Tables)
12 Months Ended
Dec. 31, 2021
TAXATION  
Schedule of domestic and foreign components of loss before income taxes

The domestic and foreign components of loss before income taxes for the years ended December 31, 2021 and 2020 are as follows:

Year Ended

    

2021

    

2020

Domestic

$

23,500,189

$

6,426,623

Foreign

 

(11,191,729)

 

(8,944,609)

Income (loss) before income taxes

 

12,308,460

 

(2,517,986)

Schedule of provision for income taxes

For the years ended December 31, 2021 and 2020 income taxes expense consisted of:

Year Ended 

    

2021

    

2020

Current taxes:

    

  

    

  

Federal

$

38,461,470

$

18,957,490

State

 

7,358,780

 

2,813,100

Total Current

45,820,250

21,770,590

Deferred taxes:

 

 

Federal

(13,414,139)

110,928

State

 

(3,145,200)

 

205,945

Foreign

(2,980,526)

(1,386,577)

Change in valuation allowance

2,980,526

1,386,577

Total Deferred

(16,559,339)

316,873

Total income tax expense:

$

29,260,911

$

22,087,463

Schedule of reconciliation between the effective tax rate on income from continuing operations and statutory tax

The difference between the income tax expense for the years ended December 31, 2021 and 2020 and the expected income taxes based on the statutory tax rate applied to income (loss) before income tax as follows:

    

Years Ended

    

2021

    

2020

Income (Loss) before income taxes

    

$

12,308,460

$

(2,517,986)

Statutory tax rates

 

21

%  

 

21

%

Expense (Recovery) based on statutory rates

 

2,584,776

(528,777)

Foreign tax rate differential

 

(671,504)

(536,978)

State taxes

 

4,981,840

2,990,031

Acquisitions costs

 

1,856,910

491,748

Non-deductible expenses

 

18,235,273

18,705,349

Tax rate change

 

(767,185)

206,828

Change in valuation allowance

2,980,526

1,386,577

Other differences

60,275

(627,315)

Income tax expense

$

29,260,911

$

22,087,463

Schedule of components of deferred tax assets and liabilities, and deferred tax assets that have not been recognized

At December 31, 2021 and 2020, the components of deferred tax assets and liabilities were as follows:

   

Year Ended December 31, 

   

2021

   

2020

Deferred tax assets

Net operating losses

$

7,966,924

$

4,686,002

Share issuance costs

2,245,164

2,598,470

Investments

34,185

146,724

Inventory

153,007

161,508

Other assets

1,051,992

50,782

Total deferred tax assets

11,451,272

7,643,486

Valuation allowance

(8,552,068)

(5,571,542)

Total deferred tax assets

2,899,204

2,071,944

Deferred tax liabilities

Depreciation

$

(6,071,445)

$

(81,156)

Amortization

(64,197,066)

(14,905,067)

Debt financing costs

(1,821,085)

(1,713,700)

Other liabilities

(890,927)

(50,012)

Total deferred tax liabilities

(72,980,523)

(16,749,935)

Net deferred tax liabilities

$

(70,081,319)

$

(14,677,991)