Genius Group Limited Registration statement for securities of certain foreign private issuers

Registration statement for securities of certain foreign private issuers

DEFERRED TAX ASSETS AND LIABILITIES

DEFERRED TAX ASSETS AND LIABILITIES

12 Months Ended

Dec. 31, 2021

Dec. 31, 2020

DEFERRED TAX ASSETS AND LIABILITIES

DEFERRED TAX ASSETS AND LIABILITIES

NOTE 13 — DEFERRED TAX ASSETS AND LIABILITIES

Deferred tax assets and (liabilities) as of December 31, 2021 and 2020 and the related activity for the years ended December 31, 2021 and 2020 are as follows:


			Recognized		Recognized
	Balance		In		In		Balance
	December 31,		Other		Provision For		December 31,
	2020		Comprehensive Income		Income Taxes		2021
Non-current assets:
Intangible assets		—		—		—	$	—
Property, plant, and equipment		(979,612)		—		96,537	$	(883,075)
Other		(8,431)				8,431	$	—
		(988,043)		—		104,968		(883,075)
Current assets:
Receivables		—		—		—	$	—
Prepaid expenses		(11,849)		—		(5,346)	$	(17,195)
Other (Section 24C allowance)		26,452		23,451		116	$	50,019
		14,603		23,451		(5,230)		32,824
Current liabilities:
Depreciation		—		—		—	$	—
Income in Advance		98,015		—		29,114	$	127,129
Tax Losses		—		—		—	$	—
Net deferred tax assets and (liabilities)	$	(875,425)	$	23,451	$	128,852	$	(723,122)


	Balance
	December 31,		Recognized In		Recognized In		Balance
	2019, as		Business		Provision For		December 31,
	restated		Combinations		Income Taxes		2020
Non-current assets:
Intangible assets	$	—	$	—	$	—	$	—
Property, plant, and equipment		(1,005,005)		(69,537)		94,930		(979,612)
Other		—		—		(8,431)		(8,431)
		(1,005,005)		—		86,499		(988,043)
Current assets:
Other (Section 24C allowance)		(11,709)		—		(140)		(11,849)
Other (Other)		—		—		26,452		26,452
		(11,709)		—		26,312		14,603
Current liabilities:
Income in Advance		105,108		—		(7,093)		98,015
Tax Losses		174,963				(174,963)		—
		280,070		—		(182,056)		98,015
Net deferred tax assets and (liabilities)	$	(736,645)	$	(69,537)	$	(69,245)	$	(875,425)

Unused tax losses for which no deferred tax assets have been recognized as of December 31, 2021 and 2020 are as follows:


	Year Ended December 31,
	2021		2020
Unused tax losses for which no deferred tax assets has been recognized	$	(9,982,291)	$	(6,155,623)
Potential tax benefit of such unused tax losses at applicable statutory tax rates	$	(2,050,255)	$	(1,305,245)

Management has evaluated and concluded that there were no material uncertain tax positions requiring recognition in the Company’s financial statements as of December 31, 2021 and 2020.

No tax audits were commenced or were in process during the years ended December 31, 2021 and 2020 and no tax related interest or penalties were incurred during those years.

NOTE 13 — DEFERRED TAX ASSETS AND LIABILITIES (as restated)

Deferred tax assets and (liabilities) as of December 31, 2020 and 2019 and the related activity for the years ended December 31, 2020 and 2019 are as follows:


			Recognized		Recognized
	Balance		In		In		Balance
	December 31,		Business		Provision For		December 31,
	2019, as restated		Combinations		Income Taxes		2020, as restated
Non-current assets:
Intangible assets	$	—	$	—	$	—	$	—
Property, plant, and equipment		(1,005,005)		(69,537)		94,930		(979,612)
Other		—				(8,431)	$	(8,431)
		(1,005,005)		(69,537)		86,499	$	(988,043)
Current assets:
Other (Section 24C allowance)		(11,709)		—		(140)		(11,849)
Other (Other)		—		—		26,452		26,452
		(11,709)		—		26,312		14,603
Current liabilities:
Income in Advance		105,108		—		(7,093)		98,015
Tax Losses		174,963				(174,963)		—
		280,071		—		(182,056)		98,015
Net deferred tax assets and (liabilities)	$	(736,645)	$	(69,537)	$	(69,245)	$	(875,425)



	Balance		Recognized In		Recognized In		Balance
	December 31,		Business		Provision For		December 31,
	2018		Combinations		Income Taxes		2019, as restated
Non-current assets:
Intangible assets	$	—	$	—	$	—	$	—
Property, plant, and equipment		(853,231)		(218,402)		66,628	$	(1,005,005)
Other		—		—		—	$	—
		(853,231)		(218,402)		66,628		(1,005,005)
Current assets:
Receivables		—		—		—	$	—
Prepaid expenses		(1,536)		—		1,536	$	—
Other (Section 24C allowance)		(70,427)		—		58,718	$	(11,709)
		(71,963)		—		60,254		(11,709)
Current liabilities:
Depreciation		—		—		—	$	—
Income in Advance		117,378		—		(12,270)	$	105,108
Tax Losses		373,618				(198,656)	$	174,963
		490,996				(210,926)		280,071
Net deferred tax assets and (liabilities)	$	(434,198)	$	(218,402)	$	(84,044)	$	(736,645)

Unused tax losses for which no deferred tax assets have been recognized as of December 31, 2020 and 2019 are as follows:


	Year Ended December 31,
	2020		2019
Unused tax losses for which no deferred tax assets has been recognized	$	(6,155,623)	$	(4,044,750)
Potential tax benefit of such unused tax losses at applicable statutory tax rates	$	(1,305,245)	$	(768,413)

Management has evaluated and concluded that there were no material uncertain tax positions requiring recognition in the Company’s financial statements as of December 31, 2020 and 2019.

No tax audits were commenced or were in process during the years ended December 31, 2020 and 2019 and no tax related interest or penalties were incurred during those years.