Note 11 – Income Taxes
The Company uses the liability method, where deferred tax assets and liabilities are determined based on the expected future tax consequences of temporary differences between the carrying amounts of assets and liabilities for financial and income tax reporting purposes. During 2015 and 2014, the Company incurred net losses and, therefore, has no tax liability. The net deferred tax asset generated by the loss carry-forward has been fully reserved. The cumulative net operating loss carry-forward is approximately $1,001,468 and $437,925 at December 31, 2015 and 2014, respectively, and will begin to expire in the year 2034.
The Company had deferred income tax assets as of December 31, 2015, and 2014 as follows:
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|
December 31, 2015
|
|
|
December 31, 2014
|
|
|
Operating loss carryforwards before income tax
|
|
$
|
1,001,483
|
|
|
$
|
437,925
|
|
|
Expected recovery at statutory rate 34%
|
|
|
34%
|
|
|
|
34%
|
|
|
Loss carryforwards
|
|
|
340,504
|
|
|
|
148,895
|
|
|
Less - valuation allowance
|
|
|
(340,504
|
)
|
|
|
(148,895
|
)
|
|
Total net deferred tax assets
|
|
$
|
-
|
|
|
$
|
-
|
|