Annual reports filed by certain Canadian issuers pursuant to Section 15(d) and Rule 15d-4

Note 16 - Income Taxes

v3.8.0.1
Note 16 - Income Taxes
12 Months Ended
Dec. 31, 2017
Statement Line Items [Line Items]  
Disclosure of income tax [text block]
16.
Income taxes:
 
Deferred tax assets have
not
been recognized in respect of the following items:
 
    December 31,
2017
    December 31,
2016
    December 31,
2015
 
          As recast
(note 3(b))
    As recast
(note 3(b))
 
                   
Net operating losses carried forward   $
15,645
    $
11,743
    $
8,099
 
Research and development expenditures    
5,450
     
5,098
     
4,946
 
Equipment book over tax depreciation    
410
     
368
     
354
 
Intangible asset    
2,464
     
2,307
     
2,238
 
Undeducted financing costs    
273
     
270
     
281
 
Ontario Research and Development Tax Credit    
427
     
398
     
388
 
Cumulative eligible capital    
284
     
267
     
288
 
Unrecognized deferred tax asset   $
24,953
    $
20,451
    $
16,594
 
 
The Company has undeducted research and development expenditures, totaling
$20.5
million that can be carried forward indefinitely. The Company also has non-refundable federal investment tax credits of approximately
$4.3
million which are available to reduce future federal taxes payable and begin to expire in
2018,
as well as non-refundable Ontario research and development tax credits of approximately
$425
thousand which are available to reduce future Ontario taxes payable and begin to expire in
2028.
 
In addition, the Company has non-capital loss carryforwards of
$59
million. To the extent that the non-capital loss carryforwards are
not
used, they expire as follows:
 
       
2026   $
6
 
2027    
3,460
 
2028    
2,978
 
2029    
522
 
2030    
2,313
 
2031    
2,053
 
2032    
2,767
 
2033    
5,977
 
2034    
4,558
 
2035    
8,988
 
2036    
13,520
 
2037    
11,859
 
    $
59,001
 
 
Provision for income taxes:
 
Major items causing the Company’s income tax rate to differ from the statutory rate of approximately
26.5%
(
December 
31,
2015
26.5%,
December 
31,
2014
-
26.5%
) are as follows:
 
    Year ended
December 31,
2017
    Year ended
December 31,
2016
    Year ended
December 31,
2015
 
          As recast
(note 3(b))
    As recast
(note 3(b))
 
                   
Loss before income taxes   $
(11,661
)   $
(14,240
)   $
(11,711
)
Statutory Canadian corporate tax rate    
26.5
%    
26.5
%    
26.5
%
                         
Anticipated tax recovery   $
(3,090
)   $
(3,773
)   $
(3,103
)
Non-deductible permanent differences    
220
     
412
     
604
 
Change in deferred tax benefits deemed not probable to be recovered    
4,502
     
3,434
     
2,606
 
Change in substantively enacted rates    
51
     
 
     
 
 
Foreign exchange differences    
(1,391
)    
 
     
 
 
Other    
(292
)    
(73
)    
(107
)
    $ -     $ -     $ -