XML 45 R27.htm IDEA: XBRL DOCUMENT
v3.10.0.1

Income Taxes | 12 Months Ended
--- | ---
Dec. 31, 2018
Income Tax Disclosure [Abstract] |
Income Taxes | Income Taxes The domestic and foreign components of comprehensive loss before income taxes were as follows:
| Years ended
| December 31, 2018 $ |  | December 31, 2017 $
Domestic | (71,188 | ) |  | (31,056 | )
Foreign | (9,016 | ) |  | (3,686 | )
| (80,204 | ) |  | (34,742 | )
The reconciliation of the expected provision for income tax recovery/expense to the actual provision for income tax recovery/expense reported in the Consolidated Statements of Operations and Comprehensive Loss for the years ended December 31, 2018 and 2017 is as follows:
| Years ended
| December 31, 2018 $ |  | December 31, 2017 $
Comprehensive loss | (80,204 | ) |  | (34,742 | )
Expected income tax expense at Canadian statutory income tax rate of 26.51% (2017 - 26.51%) | (21,269 | ) |  | (9,211 | )
Permanent differences | 16,057 |  |  | 13,015 |
Share issuance costs | (8,051 | ) |  | (4,502 | )
Stock-based compensation benefits | (3,132 | ) |  | (4,722 | )
State tax losses | (659 | ) |  | (4,875 | )
Other items | (88 | ) |  | 367 |
Foreign tax rate differential | 1,726 |  |  | 711 |
Increase in valuation allowance | 15,416 |  |  | 9,217 |
Provision for income tax (recovery) expense | — |  |  | — |
During the years ended December 31, 2018 and 2017, the comprehensive loss before income taxes includes foreign income loss of $9,016 and $3,686, respectively. The significant components of the Company’s deferred income tax assets and liabilities as of December 31, 2018 and 2017 are as follows:
| December 31, 2018 $ |  | December 31, 2017 $
Deferred tax assets |  |  |
State tax loss carryforwards | 7,493 |  |  | 6,839 |
Share issuance costs | 8,011 |  |  | 6,662 |
Lease accruals and reserves | 8,384 |  |  | 5,747 |
Tax loss carryforwards | 12,047 |  |  | 4,283 |
Scientific Research & Experimental Development (SR&ED) expenditure carryforwards | 2,539 |  |  | 3,486 |
Temporary differences on capital and intangible assets | 2,366 |  |  | 3,236 |
Investment tax credits | 3,294 |  |  | 3,046 |
Stock based compensation expense | 6,427 |  |  | 237 |
Valuation allowance | (46,343 | ) |  | (31,653 | )
Total deferred tax assets | 4,218 |  |  | 1,883 |
Deferred tax liabilities |  |  |  |  |
Capitalized software development costs | 5,350 |  |  | 3,271 |
Total deferred tax liabilities | 5,350 |  |  | 3,271 |
Net deferred tax liability | 1,132 |  |  | 1,388 |
Management assesses the available positive and negative evidence to estimate whether sufficient future taxable income will be generated to permit use of the existing deferred tax assets. On the basis of this evaluation, as of December 31, 2018, a valuation allowance continues to be recorded against all of our deferred tax assets as we believe that it is not more likely than not that our deferred tax assets will be realized. The Company does no t have any unrecognized tax benefits. The Company's accounting policy is to recognize interest and penalties related to uncertain tax positions as a component of income tax expense. In the years ended December 31, 2018 and 2017, there was no interest or penalties related to uncertain tax positions. The Company and its Canadian subsidiaries file federal and provincial income tax returns in Canada. The Company and its U.S. subsidiaries file federal and state income tax returns in the U.S. and other foreign subsidiaries file income tax returns in their respective foreign jurisdictions. The Company remains subject to audit by the relevant tax authorities for the years ended 2011 through 2018. The Company was subject to a corporate income tax audit by the Canadian Revenue Agency (CRA) for tax years ending December 31, 2015. During the year ending December 31, 2018, the CRA concluded its audit with no reassessment and, thus, no interest or penalties. There is no impact to the consolidated financial statements for the year ending December 31, 2018. The Company estimates SR&ED expenditures and claims investment tax credits for income tax purposes based on management’s interpretation of the applicable legislation in the Income Tax Act and related provincial legislation. These claims are subject to audit by the tax authorities. In the opinion of management, the treatment of research and development expenditures for income tax purposes is appropriate. Any difference between recorded investment tax credits and amounts ultimately received is recorded when the amount becomes known. As at December 31, 2018 and 2017, the Company had unused non-capital tax losses of approximately $169,967 and $96,495 respectively. $17,210 of the non-capital tax losses as at December 31, 2018 do not expire, while the $152,757 remaining non-capital tax losses are due to expire between 2032 and 2038. U.S. state losses of $116,026 are included in the balance at December 31, 2018. In addition, at December 31, 2018 and 2017, the Company has a SR&ED expenditure pool balance totaling $9,575 and $13,148, respectively, which does not expire, and investment tax credits of $4,179 and $3,762, respectively. The investment tax credits are due to expire between 2030 and 2038.

X
- References No definition available. + Details
Name: | us-gaap_IncomeTaxDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -URI http://asc.fasb.org/topic&trid=2144680 + Details
Name: | us-gaap_IncomeTaxDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration