ENERGY FUELS INCUUUU
ENERGY FUELS INC Income Taxes Disclosure
INCOME TAXES
* Not applicable.
Income before taxes includes the following components:
| Years Ended December 31, | |||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||
| Canada | $ | (8,273) | $ | (24,213) | $ | (5,229) | |||||||||||
| Foreign | (78,817) | (24,000) | 105,261 | ||||||||||||||
| Total | $ | (87,090) | $ | (48,213) | $ | 100,032 | |||||||||||
A reconciliation of income tax benefit (expense) to the amount computed by applying the 15% Canadian federal income tax rate after the adoption of ASU 2023-09 is presented below. The Canadian federal income tax rate is utilized as the Company's income tax filing entity is a Canadian corporation that is domiciled in Canada.
| 2025 | |||||||||||
| Amount | Percent | ||||||||||
| Worldwide book loss before income tax | $ | (87,090) | * | ||||||||
| Canada federal statutory income tax rate | $ | (13,063) | 15 | % | |||||||
| Domestic federal | |||||||||||
| Nontaxable or nondeductible items | $ | (186) | 0.21 | % | |||||||
| Cross-border taxes | 626 | (0.72) | % | ||||||||
| Changes in valuation allowances | 464 | (0.53) | % | ||||||||
| Other reconciling items | 337 | (0.39) | % | ||||||||
| Domestic state and local income taxes, net of federal effect | — | — | % | ||||||||
| Foreign tax effects | |||||||||||
| U.S. | |||||||||||
| Nondeductible expenses | $ | 1,094 | (1.26) | % | |||||||
| Changes in valuation allowances | 11,633 | (13.36) | % | ||||||||
| Statutory income tax rate differential | (5,523) | 6.34 | % | ||||||||
| Kenya | |||||||||||
| Nondeductible expenses | 233 | (0.27) | % | ||||||||
| Changes in valuation allowances | 2,643 | (3.03) | % | ||||||||
| Statutory income tax rate differential | (1,418) | 1.63 | % | ||||||||
| Other | (1,125) | 1.29 | % | ||||||||
| Australia | |||||||||||
| Nondeductible expenses | 202 | — | % | ||||||||
| Share-based compensation | 1,109 | (1.27) | % | ||||||||
| Changes in valuation allowances | 3,690 | (4.24) | % | ||||||||
| Statutory income tax rate differential | (2,501) | 2.87 | % | ||||||||
| Madagascar | |||||||||||
| Changes in valuation allowances | 730 | (0.84) | % | ||||||||
| Statutory income tax rate differential | (183) | — | % | ||||||||
| Other Foreign Jurisdictions | |||||||||||
| Nondeductible expenses | 246 | (0.28) | % | ||||||||
| Changes in valuation allowances | 182 | (0.21) | % | ||||||||
| Statutory income tax rate differential | (169) | 0.19 | % | ||||||||
| Worldwide changes in prior year unrecognized tax benefits | — | — | % | ||||||||
| Total | $ | 979 | 1.12 | % | |||||||
The Company paid $0.10 million of income taxes in 2025, all of which was attributable to Brazil.
The Company adopted ASU 2023-09 prospectively with its 2025 annual reporting. See Note 2 – Summary of Significant Accounting Policies. As such, the reconciliation of income tax expense (benefit) and the product of income (loss) before income taxes and the combined Canadian federal and provincial income tax rate of 26.5% is as follows:
| Years Ended December 31, | |||||||||||
| 2024 | 2023 | ||||||||||
| Income (loss) before income taxes | $ | (48,213) | $ | 100,032 | |||||||
| Combined federal and provincial rate | 26.50 | % | 26.50 | % | |||||||
| Expected income tax (benefit) | (12,776) | 26,508 | |||||||||
| Share-based compensation | 225 | (893) | |||||||||
| Transaction costs | 2,849 | — | |||||||||
| Other non-deductible/non-taxable items | 2,553 | 2,015 | |||||||||
| Foreign tax rate differences | (418) | — | |||||||||
| Unrecognized deferred tax assets | 7,195 | (27,354) | |||||||||
| Income tax benefit (expense) | $ | (372) | $ | 276 | |||||||
The components of the net deferred tax assets and liabilities are as follows:
| Years Ended December 31, | |||||||||||
| 2025 | 2024 | ||||||||||
| Operating loss carry forwards | $ | 136,227 | $ | 117,493 | |||||||
| Mineral properties and deferred costs, United States | 16,312 | 13,990 | |||||||||
| Property, plant and equipment | 1,912 | 8,907 | |||||||||
| Accruals & reserves | 7,169 | 6,923 | |||||||||
| Debt issuance costs, R&D and other | 2,793 | 4,722 | |||||||||
| Mineral properties and deferred costs, Other | 3,144 | 2,808 | |||||||||
| Asset retirement obligations | 1,416 | 1,909 | |||||||||
| Mineral properties and deferred costs, Canada | 1,773 | 1,724 | |||||||||
| Mineral properties and deferred costs, Madagascar | 1,263 | 1,263 | |||||||||
| Capital loss carry forwards | 861 | 837 | |||||||||
| Inventories | 1,965 | 832 | |||||||||
| Short-term investments | 209 | 209 | |||||||||
| Total deferred tax assets | 175,044 | 161,617 | |||||||||
| Less: valuation allowance | (175,044) | (161,617) | |||||||||
| Net deferred tax assets | $ | — | $ | — | |||||||
As of December 31, 2025 and 2024, the Company recorded a full valuation allowance against the net deferred tax assets for the above related items in the financial statements as management did not consider it more likely than not that the Company will be able to realize the deferred tax assets in the future.
The following table summarizes the changes to the valuation allowance:
| For the Years Ended | Balance | Balance | ||||||||||||||||||||||||
December 31, | Beginning of Period | Additions(1) | Deductions(2) | End of Period | ||||||||||||||||||||||
| 2025 | $ | 161,617 | 22,844 | (9,417) | $ | 175,044 | ||||||||||||||||||||
| 2024 | $ | 119,755 | 45,743 | (3,881) | $ | 161,617 | ||||||||||||||||||||
(1)The additions to the valuation allowance during the year ended December 31, 2025 result from the generation of additional tax losses as well as increases to tax assets such as mineral property and inventory. The additions to the valuation allowance during the year ended December 31, 2024 result from the generation of additional tax losses and deferred tax assets acquired from Base Resources.
(2)The reductions to the valuation allowance during the year ended December 31, 2025 result from the decrease to tax assets such as debt issuance costs, property, plant and equipment and asset retirement obligations. For the year ended December 31, 2024, the reductions to the valuation allowance result from the decrease to tax assets such as ARO and mineral properties in the U.S.
The following table summarizes the Company’s capital losses and net operating losses as of December 31, 2025 that can be applied against future taxable income:
| Country | Type | Amount | Expiry Date | |||||||||||||||||
| Canada | Non-capital losses | $ | 61,025 | 2027 - 2039 | ||||||||||||||||
| Canada | Allowable capital losses | 3,248 | None | |||||||||||||||||
| Canada | Investment tax credits | 1,572 | 2026-2032 | |||||||||||||||||
| United States | Pre-2018 net operating losses | 194,434 | 2026-2036 | |||||||||||||||||
| United States | Post-2017 net operating losses | 157,712 | None | |||||||||||||||||
| Australia | Net operating losses | 75,685 | No expiration | |||||||||||||||||
| Madagascar | Net operating losses | 5,048 | 2026-2029 | |||||||||||||||||
| Kenya | Net operating losses | 9,647 | No expiration | |||||||||||||||||
| Other Jurisdictions | Net operating losses | 852 | Various | |||||||||||||||||
| Total | $ | 509,223 | ||||||||||||||||||
Under Section 382 of the Internal Revenue Code of 1986, a corporation that undergoes an ownership change is subject to limitations on its use of pre-change tax attributes and carryforwards to offset future taxable income. The Company had an ownership change in 2015 and is subject to an annual limitation for the use of loss carryforwards generated prior to 2015.
In addition, as a result of the Tax Cuts and Jobs Act, U.S. net operating loss carryforwards generated after December 31, 2017 are limited to usage at 80% of taxable income and will be permitted to be carried forward indefinitely.
Utilization of the Canadian loss carry forwards will be subject to the Acquisition of Control Rules in any year as a result of previous changes in ownership.
The Company files income tax returns in the U.S. federal and various state jurisdictions with varying statutes of limitations. The Company’s net operating losses from all years may be subject to adjustment for or four years following the year in which utilized. We do not anticipate that any potential tax adjustments will have a significant impact on our financial position or results of operations.
The Company’s policy is to include interest and penalties related to uncertain tax positions in the income tax expense line on the financial statements. As of December 31, 2025, the Company does not have any uncertain tax positions.
For the year ended December 31, 2025, the Company recorded income tax benefit of $0.98 million on loss before tax of $87.09 million. For the year ended December 31, 2024, the Company recorded income tax benefit of $0.37 million on loss before tax of $48.21 million. For the year ended December 31, 2023, the Company recorded income tax expense of $0.28 million on income before tax of $100.03 million. The effective tax rate was 1.12%, 0.77% and 0.28% for the years ended December 31, 2025, 2024 and 2023 respectively.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 26, 2026 | Showing above |
| 2024 | Feb 26, 2025 | |
| 2022 | Mar 8, 2023 | |
| 2021 | Mar 15, 2022 | |
| 2018 | Mar 12, 2019 | |
| 2017 | Mar 12, 2018 | |
| 2016 | Mar 10, 2017 | |
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.