As a Nevada corporation, the Company is liable for taxes in the United States.  As of December 31, 2017, the Company did not have any income for tax purposes and therefore, no tax liability or expense has been recorded in these financial statements (December 31, 2016 – none).

The Company has tax losses of approximately $27,800,000 (December 31, 2016 - $27,200,000) to reduce future taxable income.  The tax losses expire in years starting from 2028.

The deferred tax asset associated with the tax loss carry forward is approximately $9,500,000 (December 31, 2016 - $9,200,000).  The Company has provided a full valuation allowance against the deferred tax asset since it is more likely than not that the asset will not be realized.  The difference between the Company's statutory income tax rate of (34%) and its effective rate of zero is primarily attributable to the valuation allowance provided on deferred taxes arising from net operating loss carry forwards.