14. Income taxes:
Deferred income taxes reflect the impact of temporary differences between amounts of assets and liabilities as reported for financial reporting purposes and such amounts as measured by tax laws. The tax effects of temporary differences that gave rise to significant portions of the deferred tax asset and deferred tax liability are as follows:
|
| 2016 | 2015 |
| Deferred tax asset: |
|
|
| Net operating loss carryforwards | $ 10,490,000 | $ 9,980,000 |
| Capital loss carryforwards | 1,050,000 | 1,050,000 |
| Total gross deferred tax asset | 11,540,000 | 11,030,000 |
|
|
|
|
| Valuation allowance | (11,540,000) | (11,030,000) |
|
|
|
|
| Net deferred taxes | $ -- | $ -- |
Income tax expense attributable to loss before income taxes was $nil (2015 - $nil) and differed from the amounts computed by applying the U.S. federal income tax rate of 34% (2015 - 34%) to the net loss as a result of the following:
|
| 2016 | 2015 |
| Expected tax rate | 34% | 34% |
| Expected tax recovery applied to net |
|
|
| loss before income taxes | $ (1,449,000) | $ (1,106,000) |
|
|
|
|
| Increase (decrease) in taxes resulting from: |
|
|
| Change in valuation allowance | 510,000 | 580,000 |
| Compensation expense | 159,000 | 193,000 |
| Interest and financing costs | 204,000 | 399,000 |
| Other | (576,000) | (66,000) |
|
|
|
|
|
| $ 0 | $ 0 |
The Corporation has net operating losses of $31,016,000 which are available to reduce U.S. taxable income and which expire as follows:
|
|
|
| 2019 | $ 391,000 |
| 2020 | 675,000 |
| 2021 | 521,000 |
| 2022 | 897,000 |
| 2023 | 1,671,000 |
| 2024 | 4,205,000 |
| 2025 | 3,381,000 |
| 2026 | 3,088,000 |
| 2027 | 2,623,000 |
| 2028 | 2,401,000 |
| 2029 | 1,299,000 |
| 2030 | 1,258,000 |
| 2031 | 1,298,000 |
| 2032 | 1,229,000 |
| 2033 | 1,475,000 |
| 2034 | 1,404,000 |
| 2035 | 1,704,000 |
| 2036 | 1,496,000 |
|
| $ 31,016,000 |
The losses noted above are estimates, as the related tax returns have not been filed by the Corporation.