v3.21.1
TAXATION (Tables)
12 Months Ended
Dec. 31, 2020
TAXATION  
Schedule of provision for income taxes

Provision for income taxes consists of the following for the years ended December 31, 2020 and 2019:

 

 

 

 

 

 

 

 

 

Year Ended December 31, 

 

 

2020

 

2019

Current expense:

    

  

 

    

  

 

Federal

 

$

19,023,188

 

$

7,706,952

State

 

 

2,953,573

 

 

1,021,109

Total current expense:

 

$

21,976,761

 

$

8,728,061

 

 

 

 

 

 

 

Deferred expense (benefit):

 

 

  

 

 

  

Federal

 

$

1,547,525

 

$

(3,442,568)

State

 

 

841,083

 

 

(450,002)

Total deferred expense (benefit):

 

$

2,388,608

 

$

(3,892,570)

 

 

 

 

 

 

 

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:

 

 

 

 

 

 

 

 

 

 

Year Ended December 31, 

 

 

 

2020

 

2019

 

Loss before taxes

    

$

(151,967,289)

    

$

(159,344,113)

 

Statutory tax rate

 

 

27

%  

 

27

%

 

 

 

 

 

 

 

 

Expected income tax recovery

 

 

(41,031,168)

 

 

(43,022,911)

 

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

 

Non-deductible items

 

 

6,794,533

 

 

4,091,370

 

Benefit of tax loss not recognized

 

 

1,386,578

 

 

1,708,628

 

State tax

 

 

3,794,656

 

 

563,268

 

 

 

 

 

 

 

 

 

Reported income tax expense

 

$

24,365,369

 

$

4,835,491

 

 

 

 

 

 

 

 

 

Effective Tax Rate

 

 

(16.03)

%  

 

(3.03)

%

 

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:

 

 

 

 

 

 

 

 

 

Year Ended December 31, 

 

 

2020

 

2019

Property, plant and equipment

    

$

(1,085,011)

    

$

(777,780)

Intangible assets

 

 

(44,981,241)

 

 

(41,992,664)

Partnerships

 

 

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:

 

 

 

 

 

 

 

 

 

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

Other temporary differences

 

 

2,855

 

 

15,269

Total unrecognized deductible temporary differences

 

$

20,635,343

 

$

15,194,660