ifrs-full:DisclosureOfIncomeTaxExplanatory
| |
a) |
Income tax recognized in profit or loss:
|
| |
|
|
2017
|
|
|
2016 |
|
|
2015 |
|
| |
|
|
|
|
|
|
|
|
|
|
| |
Canadian current tax expense |
$ |
-
|
|
$ |
-
|
|
$ |
-
|
|
| |
Foreign current tax expense |
|
-
|
|
|
-
|
|
|
-
|
|
| |
Deferred tax expense |
|
-
|
|
|
-
|
|
|
-
|
|
| |
Total |
|
-
|
|
|
-
|
|
|
-
|
|
| |
b) |
Reconciliation of accounting and taxable income, for the years ended December 31 are as follows:
|
| |
|
|
2017
|
|
|
2016 |
|
|
2015 |
|
| |
|
|
|
|
|
|
|
|
|
|
| |
Net income (loss) for the year before taxes |
$ |
(6,014,330
|
)
|
$ |
(4,271,294
|
) |
$ |
(5,044,012
|
) |
| |
Combined federal and provincial income tax rate |
|
26.00%
|
|
|
26.00%
|
|
|
26.00%
|
|
| |
Expected income tax expense (recovery) |
|
(1,564,000
|
)
|
|
(1,111,000
|
) |
|
(1,311,000
|
) |
| |
Increase (decrease) resulting from |
|
|
|
|
|
|
|
|
|
| |
SR&ED credit claims |
|
(3,000
|
)
|
|
78,000
|
|
|
(210,000
|
) |
| |
Stock-based compensation |
|
31,000
|
|
|
189,000
|
|
|
34,000
|
|
| |
Non-deductible (Non-Taxable) items |
|
(79,000
|
)
|
|
(55,000
|
) |
|
24,000
|
|
| |
Tax adjustment from rate change and other |
|
(262,000
|
)
|
|
-
|
|
|
-
|
|
| |
Change in unrecognized deferred tax assets |
|
1,877,000
|
|
|
899,000
|
|
|
1,501,000
|
|
| |
Income tax expense |
$ |
-
|
|
$ |
-
|
|
$ |
-
|
|
| |
c) |
The components of the deferred tax asset (liability) balances for the years ended December 31, are as follows:
|
| |
|
|
2017
|
|
|
2016 |
|
|
2015 |
|
| |
|
|
|
|
|
|
|
|
|
|
| |
Deferred tax assets |
|
|
|
|
|
|
|
|
|
| |
Non-capital losses |
$
|
6,401,000
|
|
$ |
4,703,000
|
|
$ |
3,741,000
|
|
| |
Equipment and other |
|
223,000
|
|
|
78,000
|
|
|
76,000
|
|
| |
Temporary differences relating to intellectual property costs |
|
-
|
|
|
136,000
|
|
|
136,000
|
|
| |
Foreign tax credit |
|
412,000
|
|
|
412,000
|
|
|
412,000
|
|
| |
Un-deducted SR&ED expenditure pool |
|
412,000
|
|
|
320,000
|
|
|
320,000
|
|
| |
Investment tax credit |
|
196,000
|
|
|
161,000
|
|
|
239,000
|
|
| |
Share issuance costs |
|
156,000
|
|
|
113,000
|
|
|
100,000
|
|
| |
Unrecognized deferred tax assets |
|
(7,800,000
|
)
|
|
(5,923,000
|
) |
|
(5,024,000
|
) |
| |
|
$
|
-
|
|
$ |
-
|
|
$ |
-
|
|
Deferred tax assets in respect of losses and other temporary differences are recognized when it is more likely than not, that they will be recovered against profits in future periods. No deferred tax asset has been recognized as this criteria has not been met.
At December 31, 2017, the Company has Canadian non capital losses totalling approximately $23,714,000
that expire beginning in 2026:
|
Year of Expiry
|
|
Amount
|
|
| 2026 |
$ |
6,000
|
|
| 2027 |
|
16,000
|
|
| 2028 |
|
533,000
|
|
| 2029 |
|
863,000
|
|
| 2031 |
|
2,080,000
|
|
| 2032 |
|
2,290,000
|
|
| 2033 |
|
39,000
|
|
| 2034 |
|
3,908,000
|
|
| 2035 |
|
4,356,000
|
|
| 2036 |
|
3,583,000
|
|
| 2037 |
|
6,040,000
|
|
| |
$ |
23,714,000
|
|