TAXATION (Tables)
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12 Months Ended |
Dec. 31, 2020 |
TAXATION |
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Schedule of provision for income taxes |
Provision for income taxes consists of the following for the years ended December 31, 2020 and 2019:
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Year Ended December 31,
|
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2020
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|
2019
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Current expense:
|
|
|
|
|
|
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Federal
|
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$
|
19,023,188
|
|
$
|
7,706,952
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State
|
|
|
2,953,573
|
|
|
1,021,109
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Total current expense:
|
|
$
|
21,976,761
|
|
$
|
8,728,061
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|
|
|
|
|
|
|
Deferred expense (benefit):
|
|
|
|
|
|
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Federal
|
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$
|
1,547,525
|
|
$
|
(3,442,568)
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State
|
|
|
841,083
|
|
|
(450,002)
|
Total deferred expense (benefit):
|
|
$
|
2,388,608
|
|
$
|
(3,892,570)
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|
|
|
|
|
|
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Total provision for income taxes
|
|
$
|
24,365,369
|
|
$
|
4,835,491
|
|
Schedule of reconciliation between the effective tax rate on income from continuing operations and statutory tax |
As of December 31, 2020, and 2019, the reconciliation between the effective tax rate on income from continuing operations and statutory tax are as follows:
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|
|
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Year Ended December 31,
|
|
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2020
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|
2019
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Loss before taxes
|
|
$
|
(151,967,289)
|
|
$
|
(159,344,113)
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|
Statutory tax rate
|
|
|
27
|
%
|
|
27
|
%
|
|
|
|
|
|
|
|
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Expected income tax recovery
|
|
|
(41,031,168)
|
|
|
(43,022,911)
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|
Difference in foreign tax rates
|
|
|
(3,098,062)
|
|
|
569,917
|
|
Tax rate changes and other adjustments
|
|
|
1,027,280
|
|
|
36,969
|
|
Stock-based compensation
|
|
|
8,863,599
|
|
|
7,966,090
|
|
Unrealized change in fair value of financial liabilities
|
|
|
46,627,953
|
|
|
32,922,160
|
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Non-deductible items
|
|
|
6,794,533
|
|
|
4,091,370
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|
Benefit of tax loss not recognized
|
|
|
1,386,578
|
|
|
1,708,628
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|
State tax
|
|
|
3,794,656
|
|
|
563,268
|
|
|
|
|
|
|
|
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Reported income tax expense
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|
$
|
24,365,369
|
|
$
|
4,835,491
|
|
|
|
|
|
|
|
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Effective Tax Rate
|
|
|
(16.03)
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%
|
|
(3.03)
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%
|
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Schedule of components of deferred tax assets and liabilities, and deferred tax assets that have not been recognized |
As of December 31, 2020 and 2019, the components of deferred tax assets and liabilities were as follows:
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Year Ended December 31,
|
|
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2020
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|
2019
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Property, plant and equipment
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|
$
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(1,085,011)
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|
$
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(777,780)
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Intangible assets
|
|
|
(44,981,241)
|
|
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(41,992,664)
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Partnerships
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|
|
146,978
|
|
|
136,836
|
Biological assets
|
|
|
(2,228,536)
|
|
|
1,198,574
|
Inventory
|
|
|
161,800
|
|
|
79,869
|
Start-up expenses
|
|
|
50,012
|
|
|
277,404
|
Net deferred tax liability
|
|
$
|
(47,935,998)
|
|
$
|
(41,077,761)
|
Deferred tax assets have not been recognized in respect of the following deductible temporary differences:
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|
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|
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As of December 31,
|
|
|
2020
|
|
2019
|
Share issuance and financing costs
|
|
$
|
3,276,924
|
|
$
|
5,659,149
|
Non-capital losses carried forward - Canada
|
|
|
17,355,564
|
|
|
9,520,242
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Other temporary differences
|
|
|
2,855
|
|
|
15,269
|
Total unrecognized deductible temporary differences
|
|
$
|
20,635,343
|
|
$
|
15,194,660
|
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