The Company has estimated net operating losses for the years ended December 31, 2017 and 2016 of $12.3 million and $11.0 million, respectively, available to offset taxable income in future years.
The significant components of deferred income taxes and assets as at December 31, 2017 are as follows:
| Net deferred tax liability | 2017 $ |
2016 $ |
||||||
| Excess of tax over book depreciation and amortization | - | - | ||||||
| Prepaid expenses | - | - | ||||||
| Allowance for doubtful accounts | - | - | ||||||
| Accrued expenses | 1,154 | - | ||||||
| Stock-based compensation | - | - | ||||||
| Net Operating Losses carry-forward | 11,156,839 | 8,806,016 | ||||||
| Research and development tax credits | - | - | ||||||
| Gross deferred tax assets | 11,157,993 | 8,806,016 | ||||||
| Valuation allowance | (11,157,993 | ) | (8,806,016 | ) | ||||
| Net deferred tax asset | - | - | ||||||
| Summary Rate Reconciliation | 2017 % |
|||
| Federal statutory rate | 35.0 | |||
| State income taxes, net of federal benefit | 0.0 | |||
| Permanent Differences | 0.1 | |||
| Stock based compensation | (5.8 | ) | ||
| Federal Research & Development Credits | 0.0 | |||
| Foreign taxes | (3.1 | ) | ||
| Federal Deferred Rate Decrease | (10.3 | ) | ||
| Increase/(decrease) in valuation reserve | (15.9 | ) | ||
| Total | 0.0 |