URANIUM ENERGY CORP Income Taxes Disclosure

NOTE 21:

INCOME TAXES

 

A reconciliation of income tax computed at the federal and state statutory tax rates including the Company’s effective tax rate is as follows:

 

		Year Ended July 31,
		2025				2024				2023
Federal income tax provision rate			21.00	%			21.00	%			21.00	%
State income tax provision rate, net of federal income tax effect			2.89	%			2.89	%			2.89	%
Total income tax provision rate			23.89	%			23.89	%			23.89	%

 

The actual income tax provisions differ from the expected amounts calculated by applying the combined federal and state corporate income tax rates to our loss before income taxes.

 

The components of these differences are as follows:

 

		Year Ended July 31,
		2025				2024				2023
Loss before income taxes		$	(90,435	)		$	(34,255	)		$	(2,437	)
Corporate tax rate			23.89	%			23.89	%			23.89	%
Expected tax expense (recovery)			(21,605	)			(8,184	)			(582	)
Increase (decrease) resulting from
Foreign tax rate differences			(186	)			(151	)			(83	)
Permanent differences			(317	)			4,155				1,486
Prior year true-up			164				(81	)			(464	)
Change in state tax rate			982				77				(182	)
Foreign exchange rate differences			330				(1,231	)			1,687
Other			-				-				1,138
Change in valuation allowance			17,853				381				(2,130	)
Deferred tax expense (recovery)		$	(2,779	)		$	(5,034	)		$	870

 

We have incurred taxable losses for all years since inception and, accordingly, no provision for current income tax has been recorded for the current or any prior fiscal years.

 

July 31, 2025

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As at July 31, 2025, we re-evaluated the realizability of our tax loss carry-forwards and our conclusion that the realization of these tax loss carry-forwards is not likely to occur remains unchanged.  As a result, we will continue to record a full valuation allowance for the deferred tax assets relating to the remaining tax loss carry-forwards.

 

The components of income (loss) from operations before income taxes, by tax jurisdiction, are as follows:

 

		Year Ended July 31,
		2025				2024				2023
United States		$	(80,506	)		$	(13,928	)		$	5,192
Canada			(9,206	)			(19,468	)			(6,720	)
Paraguay			(723	)			(859	)			(909	)
		$	(90,435	)		$	(34,255	)		$	(2,437	)

 

The Company’s deferred tax assets (liabilities) are as follows:

 

		July 31, 2025				July 31, 2024
Deferred tax assets (liabilities)
Mineral properties		$	60			$	2,107
Exploration costs			9,098				6,176
Stock option expense			2,985				2,448
Depreciable property			1,085				1,098
Inventories			296				334
Asset retirement obligations			6,280				4,267
Investment in equity securities			(3,745	)			(3,351	)
Equity accounted for investment			1,953				(4,190	)
Other			(3,423	)			(3,643	)
Section 163(j) interest expense carry forwards			3,307				3,307
Loss carry forwards			83,499				72,214
			101,395				80,767
Valuation allowance			(96,976	)			(78,741	)
Deferred tax assets			4,419				2,026
Deferred tax liabilities
Mineral properties			(66,542	)			(66,373	)
Net deferred tax liabilities		$	(62,123	)		$	(64,347	)

 

July 31, 2025

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The Company’s U.S. net operating loss carry-forwards expire as follows:

 

July 31, 2026		$	4,703
July 31, 2027			3,171
July 31, 2028			2,798
July 31, 2029			10,332
July 31, 2030			9,183
Between July 31, 2031 and 2037			146,045
No expiry			167,234
		$	343,466

 

For U.S. federal income tax purposes, a change in ownership under IRC Section 382 has occurred as a result of the Company’s acquisitions in prior years.  When an ownership change has occurred, the utilization of these losses against future income would be subject to an annual limitation, which would be equal to the value of the acquired company immediately prior to the change in ownership multiplied by the IRC Section 382 rate in effect during the month of the change.

 

The Company’s Canadian net operating loss carry-forwards in Canadian dollars expire as follows:

 

July 31, 2027		$	132
July 31, 2028			455
July 31, 2029			556
July 31, 2030			552
July 31, 2031			706
Remaining balance			5,849
		$	8,250