The following table sets forth a reconciliation of the statutory federal income tax for the fiscal year ended December 31, 2023 and nine months ended December 31, 2022:

	Year Ended December 31, 2023		Nine Months Ended December 31, 2022
	$		$
Income tax benefit computed at federal statutory rates	(7,909,971	)	(4,516,175	)
Non-deductible expenses	4,910		20,911
Non-deductible stock-based compensation	(25,887	)	209,213
Change in valuation allowance	6,741,327		1,704,445
Other	(27,708	)	256,450
Total Tax Benefit	(1,217,329	)	(2,325,156	)

The tax effects of the temporary differences between reportable financial statement income and taxable income are recognized as deferred tax assets or liabilities. Significant components of the deferred tax assets and the related valuation allowance are set out below.

Management has established a valuation allowance on certain deferred tax assets because of the underlying the deferred tax benefit may not be realized.


	Balance at Beginning of Fiscal Year	Charged to Costs and Expense		Balance at End of Fiscal Year
	$	$		$
Reserves and allowances deducted from asset accounts:
Valuation allowance for deferred tax assets
Year ended December 31, 2023	3,514,894	6,741,327	^(a)	10,256,221
Nine months ended December 31, 2022	1,810,449	1,704,445	^(a)	3,514,894

(a) primarily associated with net operating losses generated and current year changes in US federal temporary differences

Significant components of our deferred tax assets and liabilities as of December 31, 2023 and 2022 are as follows:

	December 31, 2023		December 31, 2022
Deferred tax assets:	$		$
Net operating losses	8,287,041		7,123,439
Stock-based compensation	2,896,753		2,147,387
Total	11,183,794		9,270,826
Less: valuation allowance	(10,256,221	)	(3,514,894	)
Total deferred tax assets	927,573		5,755,932

Deferred tax liability:
Property and equipment	5,942		(25,460	)
Mineral properties	(1,043,466	)	(7,079,154	)
Other	24,619		16,564
Total deferred tax liabilities	(1,012,905	)	(7,088,050	)

Net deferred tax liability	(85,332	)	(1,332,118	)

The Company maintains gross federal net operating loss ("NOL") carry forwards of approximately $39.3 million ($8.3 million tax-effected). Of the total gross amount, approximately $8.5 million ($1.8 million tax-effected) will begin to expire in 2027, as they were incurred prior to 2018. The NOLs generated in 2018 - 2023 can be carried forward indefinitely under the provisions of the Tax Cuts and Jobs Act.

There are no unrecognized tax benefits as of December 31, 2023 and 2022. We file income tax returns in the United States federally and in one state jurisdiction and in Canada. The Company has not been subjected to tax examinations for any year and the statute of limitations has not expired. The Company's tax returns remain open for examination by the applicable authorities, generally 3 years for federal and 4 years for state.