68 / 111
67
The provision for income taxes includes the following components:
As of December 31,
2015
2014
Current
Canada
$ - $ -
United States
-
-
-
-
Deferred
Canada
$ - $ -
United States
-
-
-
-
Income tax
expense
(recovery)
$ - $ -
A reconciliation of expected income tax on net income at statutory rates is as follows:
As of December 31,
As of December 31,
2015
2014
Net income (loss)
$ (9,678)
$ (14,029)
Statutory tax rate
26.00%
26.00%
Tax expense (recovery) at statutory rate
(2,516)
(3,648)
Foreign tax rates
(591)
(928)
Change in tax rates
166
27
Share issuance costs amortization
(103)
(220)
Stock-based compensation
569
155
Nondeductible expenses
17
5
Prior year true-up for loss carryovers
43
20
Prior year true-up for property basis
adjustments
-
(63)
Unrecognized benefit of non-capital losses
-
-
Other
-
-
Change in valuation allowance
2,415
4,652
Income tax expense (recovery)
$ -
$ -
We do not have any unrecognized income tax benefits. Should we incur interest and penalties relating to
tax uncertainties, such amounts would be classified as a component of the interest expense and operating expense,
respectively.
Rare Element and its wholly owned subsidiary, Rare Element Holdings Ltd., file income tax returns in the
Canadian federal jurisdiction and provincial jurisdictions, and its wholly owned subsidiary, Rare Element
Resources, Inc., files in the U.S. federal jurisdiction and various state jurisdictions. The years still open for audit are
generally the current year plus the previous three. However, because we have NOLs carrying forward, certain items
attributable to closed tax years are still subject to adjustment by applicable taxing authorities through an adjustment
to tax losses carried forward to open years.