XORTX Therapeutics Inc. Annual and transition report of foreign private issuers pursuant to Section 13 or 15(d)

Annual and transition report of foreign private issuers pursuant to Section 13 or 15(d)

Income taxes (Tables)

Income taxes (Tables)

12 Months Ended

Dec. 31, 2021

The income taxes shown in the consolidated statements of comprehensive loss differ from the amounts obtained by applying statutory rates to the loss before income taxes due to the following:

	2021			2020			2019
	$			$			$
Net loss for the year		(1,652,000	)		(1,285,000	)		(630,000	)
Statutory tax rate		27	%		27	%		27	%
Expected income tax recovery		(446,000	)		(347,000	)		(170,000	)
Decrease to income tax recovery due to:
Non-deductible permanent differences		135,000			79,000			16,000
Temporary differences		(516,000	)		6,000			—
(Over) under provided in prior years		—			(278,000	)		13,000
Change in tax assets not recognized		827,000			540,000			141,000
Income tax recovery		—			—			—

The significant components of the Company’s deferred tax assets are as follows:

	December 31, 2021			December 31, 2020
		$			$
Share issuance costs		529,000			18,000
Cumulative eligible capital		105,000			100,000
Operating losses carried forward		1,652,000			1,341,000
Total deferred tax assets		2,286,000			1,459,000
Deferred tax assets not recognized		(2,286,000	)		(1,459,000	)
		—			—

The losses expire as follows:

The realization of income tax benefits related to these deferred potential tax deductions is not probable. Accordingly, no deferred income tax assets have been recognized for accounting purposes. The Company has Canadian non-capital losses carried forward of approximately $6,119,000 that may be available for tax purposes. The losses expire as follows:

Expiry date	$
2032		135,000
2033		748,000
2034		325,000
2035		287,000
2036		364,000
2037		618,000
2038		1,089,000
2039		553,000
2040		847,000
2041		1,153,000
Total		6,119,000