LITHIUM AMERICAS CORP. Income Taxes Disclosure
The following table represents the major components of income/(loss) before income tax recognized in the Consolidated Statements of Loss:
|
|
For the year ended December 31, |
|
|||||
|
|
2025 |
|
|
2024 |
|
||
Income/ (loss) from continuing operations before taxes |
|
|
|
|
|
|
||
Canada |
|
$ |
(179,182 |
) |
|
$ |
(35,069 |
) |
United States |
|
|
92,920 |
|
|
|
(7,564 |
) |
|
|
$ |
(86,262 |
) |
|
$ |
(42,633 |
) |
A reconciliation of income taxes at the Canadian statutory federal rate of 15% is as follows:
|
|
For the year ended December 31, 2025 |
|
|
For the year ended December 31, 2024 |
|
||||||||
|
|
Amount |
|
Percent |
|
|
Amount |
|
Percent |
|
||||
|
|
|
|
|
|
|
|
|
|
|
||||
Loss from continuing operations before taxes |
|
$ |
(86,262 |
) |
|
|
|
$ |
(42,633 |
) |
|
|
||
Statutory tax rate |
|
$ |
(12,938 |
) |
|
15.0 |
% |
|
$ |
(6,395 |
) |
|
15.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
||||
Reconciling items: |
|
|
|
|
|
|
|
|
|
|
||||
Domestic federal |
|
|
|
|
|
|
|
|
|
|
||||
Nontaxable and nondeductible items: |
|
|
|
|
|
|
|
|
|
|
||||
Stock-based compensation |
|
|
916 |
|
|
(1.1 |
)% |
|
|
774 |
|
|
(1.8 |
)% |
Revaluation of warrant obligations |
|
|
(6,251 |
) |
|
7.2 |
% |
|
|
(32 |
) |
|
0.1 |
% |
Revaluation of convertible debt and conversion feature |
|
|
25,656 |
|
|
(29.7 |
)% |
|
|
- |
|
|
0.0 |
% |
Other reconciliation items: |
|
|
|
|
|
|
|
|
|
|
||||
Share issuance costs |
|
|
(1,017 |
) |
|
1.2 |
% |
|
|
(1,928 |
) |
|
4.5 |
% |
Others |
|
|
393 |
|
|
(0.4 |
)% |
|
|
1,051 |
|
|
(2.5 |
)% |
Changes in valuation allowance |
|
|
5,491 |
|
|
(6.3 |
)% |
|
|
5,396 |
|
|
(12.7 |
)% |
Foreign tax effects - United States |
|
|
|
|
|
|
|
|
|
|
||||
Rate differential between the U.S. and Canada |
|
|
2,750 |
|
|
(3.2 |
)% |
|
|
(454 |
) |
|
1.1 |
% |
Nontaxable and nondeductible items: |
|
|
|
|
|
|
|
|
|
|
||||
Nondeductible interest |
|
|
- |
|
|
0.0 |
% |
|
|
2,080 |
|
|
(4.9 |
)% |
Gain on transfer of employee contracts |
|
|
- |
|
|
0.0 |
% |
|
|
440 |
|
|
(1.0 |
)% |
Stock-based compensation |
|
|
- |
|
|
0.0 |
% |
|
|
(6,521 |
) |
|
15.3 |
% |
Others |
|
|
(158 |
) |
|
0.2 |
% |
|
|
192 |
|
|
(0.5 |
)% |
Other reconciliation items: |
|
|
|
|
|
|
|
|
|
|
||||
Deferred tax related to issuance of warrants |
|
|
19,353 |
|
|
(22.4 |
)% |
|
|
- |
|
|
0.0 |
% |
Adjustment of book-tax difference on capital assets |
|
|
3,352 |
|
|
(3.9 |
)% |
|
|
(661 |
) |
|
1.6 |
% |
Non-controlling interest's income |
|
|
(5,374 |
) |
|
6.2 |
% |
|
|
- |
|
|
0.0 |
% |
Others |
|
|
313 |
|
|
(0.4 |
)% |
|
|
(340 |
) |
|
0.8 |
% |
Change in valuation allowance |
|
|
(32,486 |
) |
|
37.6 |
% |
|
|
6,398 |
|
|
(15.0 |
)% |
|
|
$ |
- |
|
|
0.0 |
% |
|
$ |
- |
|
|
0.0 |
% |
The significant components of deferred income tax assets and liabilities were:
|
|
For the year ended December 31, |
|
|||||
|
|
2025 |
|
|
2024 |
|
||
Deferred income tax assets: |
|
|
|
|
|
|
||
Non-capital loss carryforwards |
|
$ |
64,960 |
|
|
$ |
58,371 |
|
Share issuance costs |
|
|
6,723 |
|
|
|
3,139 |
|
Exploration assets |
|
|
7 |
|
|
|
7 |
|
Property, plant and equipment |
|
|
9,082 |
|
|
|
3,703 |
|
Investment measured at fair value |
|
|
495 |
|
|
|
592 |
|
Production payment arrangements |
|
|
8,015 |
|
|
|
- |
|
Stock-based compensation |
|
|
112 |
|
|
|
112 |
|
Other items |
|
|
(285 |
) |
|
|
449 |
|
|
|
|
89,109 |
|
|
|
66,373 |
|
Less: valuation allowance |
|
|
(44,779 |
) |
|
|
(63,617 |
) |
Total deferred income tax assets |
|
$ |
44,330 |
|
|
$ |
2,756 |
|
|
|
|
|
|
|
|
||
Deferred income tax liabilities: |
|
|
|
|
|
|
||
Investment in Lithium Nevada Ventures |
|
$ |
(44,330 |
) |
|
$ |
(2,756 |
) |
Total deferred income tax liabilities |
|
$ |
(44,330 |
) |
|
$ |
(2,756 |
) |
|
|
|
|
|
|
|
||
Deferred income tax assets, net |
|
$ |
- |
|
|
$ |
- |
|
The Company has non-capital loss carryforwards in (i) the US of approximately $288.5 million (2024 - $257.6 million) of which $38.8 million expires between and and the remaining amount has no fixed date of expiry and (ii) Canada of $16.2 million (2024 - $15.9 million) expiring in . The non-capital loss carryforwards are available to reduce taxable income in the US and Canada, respectively.
The Company has recognized a valuation allowance to the extent the recovery of deferred tax assets cannot be supported by the reversal of taxable temporary differences, as recovery of these deferred tax assets is not considered “more likely than not”.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 19, 2026 | Showing above |
| 2024 | Mar 28, 2025 | |
About Income Taxes Disclosures
The income tax disclosure reveals how much a company actually pays in taxes versus what the statutory rate would predict. Analysts focus on the effective tax rate (ETR) reconciliation, which breaks down every item driving the gap between the 21% federal rate and the company's reported ETR — including R&D credits, foreign rate differentials, and state taxes. Deferred tax assets (DTAs) and their valuation allowances signal management's confidence in future profitability: a rising allowance suggests the company doubts it can use accumulated tax benefits. Uncertain tax benefit (UTB) reserves quantify exposure to IRS challenges on aggressive positions.
Key signals to watch: sudden ETR drops without clear operational reasons, large increases in valuation allowances, growing UTB balances, and significant unremitted foreign earnings. Post-TCJA, pay attention to GILTI and BEAT provisions that affect multinational tax structures. Compare the cash taxes paid (from the cash flow statement) against the income tax provision to gauge earnings quality.