Deferred Tax AssetsUnder UK and Canadian GAAP a company may carry the expected value of income tax loss carry forward amounts on their balance sheet if there is sufficient evidence that the Company will have future taxable income against which such losses could be applied.
As Amazon Mining and later Verde in its start up phase ran up $26 million in operating losses, it was not able to justify carrying a deferred tax asset on its balance sheet. I note in the Q3 Statements that management confirms the mine is full operation and will generate sufficient cash flows .... to adopt the going concern basis for preparing the annual financial statements. This and the growing profitability of the Company suggests there may now be sufficient assurance of future otherwise taxable income to enable the previously ignored tax assets to be recognized and shown in the statements. This would also book a nice addition to comprehensive income in 2020.
Stay tuned for the details in the 2020 audited statements.