10.       Income taxes

The provision for income taxes differs from the result that would be obtained by applying the statutory tax rate of 34% (2016 - 34%) to income before income taxes. The difference results from the following items:

The components of the net deferred income tax asset, the statutory tax rate and the amount of the valuation allowance are as follows:

The potential benefit of the deferred income tax asset has not been recognized in these financial statements since it cannot be assured that it is more likely than not that such benefit will be utilized in future years. The Company believes that the available objective evidence creates sufficient uncertainty regarding the realizability of the deferred income tax assets such that a full valuation allowance has been recorded.

The operating losses amounting to $39,717,436 for utilization in the United States of America, the jurisdiction where they were incurred, will expire between 2019 and 2037 if they are not used. The following table lists the fiscal year in which the loss was incurred and the expiration date of the operating loss carry-forwards: