During the month period ended and the Company recorded current income tax expense of and respectively, in connection with U.S. state taxes and taxes on profits in certain foreign jurisdictions, and deferred income tax recovery of and respectively, in connection with temporary differences related to the Mexican operations.

 

During the month period ended and the Company recorded current income tax expense of and respectively, in connection with U.S. state taxes and taxes on profits in certain foreign jurisdictions, and deferred income tax recovery of and respectively, in connection with temporary differences related to the Mexican operations.

 

In assessing the realization of deferred tax assets, management considers whether it is more likely than that some portion or all of its deferred tax assets will be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income. Management considers the scheduled reversal of deferred tax liabilities, change of control limitations, projected future taxable income and tax planning strategies in making this assessment. Guidance under ASC Income Taxes, (“ASC ) states that forming a conclusion that a valuation allowance is needed is difficult when there is negative evidence, such as cumulative losses in recent years in the jurisdictions to which the deferred tax assets relate. The U.S., Canadian and Asian jurisdictions continue to have a full valuation allowance recorded against the deferred tax assets.