RARE ELEMENT RESOURCES LTD.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Expressed in thousands of U.S. Dollars, except share and per share amounts, unless otherwise noted)
80
Deferred tax assets relating to equity compensation have been reduced to reflect tax deductions in excess of
previously recorded tax benefits through the year ended December 31, 2014. Our NOL carryforwards referenced
above at December 31, 2014, 2013 and 2012 include $538 of income tax deductions in excess of previously
recorded tax benefits. Although these additional tax deductions are reflected in the NOL carryforwards referenced
above, the related tax benefit of $140 will not be recognized until the deductions reduce taxes payable. Accordingly,
since the tax benefit does not reduce our current taxes payable for the periods ending December 31, 2014, 2013 or
2012, these tax benefits are not reflected in the deferred tax assets presented above. The tax benefit of these excess
deductions will be reflected as a credit to additional paid-in capital when recognized.
For financial reporting purposes, income/(loss) from continuing operations before income taxes consists of the
following components:
For the years ended December 31,
For the six-month
period ended
For the fiscal
year ended
December 31,
June 30,
2014
2013
2012
2012
Canada
$ (623) $ (1,038) $ 457
$ (15,572)
United States
(13,406)
(21,208)
(15,887)
(19,422)
$ (14,029) $ (22,246) $ (15,430)
$ (34,994)
The provision for income taxes includes the following components:
As of December 31,
2014
2013
Current
Canada
$ - $ -
United States
-
-
-
-
Deferred
Canada
$ - $ -
United States
-
-
-
-
Income tax
expense
(recovery)
$ - $ -
