U.S. GoldMining Inc. Income Taxes Disclosure

Note 15: Income Tax

 

Income (loss) from continuing operations before income taxes, disaggregated by tax jurisdiction, is as follows:

 Schedule of Income (loss) from continuing operations before income taxes

		Year ended December 31
		2025				2024
United States		$	(6,993,394	)		$	(8,510,759	)
Canada			6,409				28,645
Net loss for the year before tax		$	(6,986,985	)		$	(8,482,114	)

 

Income tax expense (benefit), disaggregated by tax jurisdiction, is as follows:

 Schedule of Income Tax Expense (benefit)

		Year ended December 31
		2025				2024
United States- Federal		$	-			$	-
United States- State			-				-
Canada			4,079				4,967
income tax expense		$	4,079			$	4,967

 

A reconciliation of the provision for income taxes computed at the combined federal and state statutory rate to the provision for income taxes as shown in the statements of operations for the years ended December 31, 2025 and 2024 is as follows:

 Schedule of Effective Tax Rate

		Year ended December 31
		2025				2024
Net loss for the year before tax		$	(6,986,985	)		$	(8,482,114	)
Statutory federal income rate			21.00	%			21.00	%
Recovery of income taxes at statutory rates		$	(1,467,267	)		$	(1,781,244	)
State tax			(519,608	)			(632,349	)
Permanent differences			273,514				157,249
Adjustments to valuation allowance related to prior years			(54,654	)			-
Change in valuation allowance			1,772,094				2,261,311
Tax expense for the year		$	4,079			$	4,967

 

Deductible temporary differences and unused tax losses for which no deferred tax assets have been recognized are attributable to the following:

 Schedule of Deferred Tax Assets

		Year ended December 31
		2025				2024
Non-capital loss carry-forward		$	4,573,084			$	3,367,952
Resource properties			2,336,694				1,825,381
Equipment			83,604				27,955
Deferred income tax assets			6,993,382				5,221,288
Valuation allowance			(6,993,382	)			(5,221,288	)
Deferred income tax assets		$	-			$	-

 

 

U.S. GOLDMINING INC.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

(Expressed in U.S. Dollars)

 

 

Deferred tax assets have not been recognized in the financial statements, as management does not consider it more likely than not that those assets will be realized in the near future. The Company has non-capital federal losses which may be carried forward to reduce taxable income in future years. As of December 31, 2025, the Company has non-capital losses of $16,085,418 in the United States of which $897,219 will expire between 2034 and 2037 and $15,188,199 may be carried forward indefinitely. Our U.S. federal net operating loss carryforwards expire as follows:

 Summary of Operating Loss Carryforwards

November 30, 2034		$	46,930
November 30, 2035			289,455
November 30, 2036			283,286
November 30, 2037			277,548
Indefinite			15,188,199
Total		$	16,085,418