| The Company has approximately $9 million of non-capital losses carried forward to offset taxable income in future years which expire beginning in fiscal 2029. The income tax benefit differs from the amount computed by applying the Canadian federal and provincial statutory rates to net loss before income taxes for the years ended January 31, 2017 and 2016, respectively, as a result of the following: |
2017 $ |
2016 $ |
|||||||
| Net loss before taxes | 6,329,029 | 10,307,065 | ||||||
| Statutory rate | 26.0 | % | 26.0 | % | ||||
| Expected tax recovery | 1,645,548 | 2,679,837 | ||||||
| Lower effective tax rate on losses in U.S. jurisdiction | (2,538 | ) | (22 | ) | ||||
| Permanent differences and other | (1,380,771 | ) | (1,657,428 | ) | ||||
| Expenses deductible for tax purposes | 35 | 44 | ||||||
| Current period losses not recognized | (262,274 | ) | (1,022,431 | ) | ||||
| Income tax provision | – | – | ||||||
| The significant components of deferred income tax assets and liabilities as at January 31, 2017 and 2016, after applying enacted corporate income tax rates, are as follows: |
2017 $ |
2016 $ |
|||||||
| Non-capital losses carried forward | 2,351,702 | 1,664,848 | ||||||
| Valuation allowance | (2,351,702 | ) | (1,664,848 | ) | ||||
| Net deferred tax asset | – | – | ||||||
| The following table lists the fiscal year in which the loss was incurred and the expiration date of the operating loss: |
| Expiry Date | Non-Capital Loss $ |
|||
| 2029 | 332,251 | |||
| 2030 | 214,788 | |||
| 2031 | 644,545 | |||
| 2032 | 976,799 | |||
| 2033 | 107,983 | |||
| 2034 | 1,088,605 | |||
| 2035 | 1,114,230 | |||
| 2036 | 3,546,763 | |||
| 2037 | 1,018,509 | |||
| 9,044,473 | ||||