Paramount Gold Nevada Corp. Income Taxes Disclosure
Note 12. Income Taxes
At June 30, 2025, the Company has net operating loss carry forwards of $38,200,235 (2024- $38,219,334) expiring between the years 2025 and 2038 which are available to reduce future taxable income. Tax losses incurred after June 30, 2018 of $45,427,872 (2024 - $35,736,884) may be carried forward indefinitely. The tax effects of the significant components within the Company’s deferred tax asset (liability) at June 30, 2025 and 2024 are as follows:
United States |
|
2025 |
|
|
2024 |
|
||
Mineral properties |
|
$ |
71,353 |
|
|
$ |
308,364 |
|
Asset retirement obligation |
|
|
481,691 |
|
|
|
476,760 |
|
Fixed assets |
|
|
(257 |
) |
|
|
752 |
|
Derivatives |
|
|
276,686 |
|
|
|
185,163 |
|
Stock options |
|
|
626,052 |
|
|
|
628,667 |
|
Other |
|
|
2,100 |
|
|
|
2,100 |
|
Net operating losses |
|
|
17,565,333 |
|
|
|
15,534,237 |
|
|
|
$ |
19,022,958 |
|
|
$ |
17,136,043 |
|
Valuation allowance |
|
|
(19,315,657 |
) |
|
|
(17,409,493 |
) |
Mineral properties |
|
$ |
(292,699 |
) |
|
$ |
(273,450 |
) |
Net deferred tax asset |
|
$ |
— |
|
|
$ |
— |
|
The income tax recovery differs from the amounts computed by applying statutory tax to pre-tax losses as a result of the following:
|
|
2025 |
|
|
2024 |
|
||
Loss before taxes |
|
$ |
(9,031,174 |
) |
|
$ |
(8,023,038 |
) |
US Statutory tax rate |
|
|
21.00 |
% |
|
|
21.00 |
% |
Expected income recovery |
|
|
(1,896,547 |
) |
|
|
(1,684,838 |
) |
Non-deductible items |
|
|
482 |
|
|
|
1,099 |
|
Change in estimates |
|
|
9,150 |
|
|
|
(67,181 |
) |
Other items |
|
|
— |
|
|
|
— |
|
Change in tax rates |
|
|
— |
|
|
|
— |
|
Change in valuation allowance |
|
|
1,906,164 |
|
|
|
1,784,327 |
|
Total income taxes |
|
|
19,249 |
|
|
$ |
33,407 |
|
Current tax expense |
|
|
— |
|
|
|
— |
|
Deferred tax expense |
|
|
19,249 |
|
|
|
33,407 |
|
|
|
$ |
— |
|
|
$ |
— |
|
The potential tax benefits of net operating losses have not been recognized in these financial statements because the Company cannot be assured it is more likely than not it will utilize the net operating losses carried forward in future years.
Accounting for uncertainty for Income Tax
Income taxes are determined using assets and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis. Deferred tax assets and liabilities are measured using the enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the period that includes the enactment date. In addition, a valuation allowance is established to reduce any deferred tax asset for which it is determined that it is more likely than not that some portion of the deferred tax asset will not be realized.
As at June 30, 2025 and 2024, the Company’s consolidated balance sheets did not reflect a liability for uncertain tax positions, nor any accrued penalties or interest associated with income tax uncertainties. The Company is subject to income taxation at the federal and state levels. The Company is subject to US federal tax examinations for the tax years . Loss carryforwards generated or utilized in years earlier than 2019 are also subject to examination and adjustment. The Company has no income tax examinations in process.
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Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Sep 25, 2025 | Showing above |
| 2024 | Sep 26, 2024 | |
| 2023 | Sep 26, 2023 | |
| 2022 | Oct 13, 2022 | |
| 2021 | Sep 17, 2021 | |
| 2020 | Sep 25, 2020 | |
| 2019 | Sep 16, 2019 | |
| 2018 | Sep 11, 2018 | |
| 2017 | Sep 18, 2017 | |
| 2016 | Sep 16, 2016 | |
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.