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11. INCOME TAX | 12 Months Ended
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Dec. 31, 2016
Income Tax Disclosure [Abstract] |
11. INCOME TAX | The provision for income tax expense (benefit) is comprised of the following:
|  | 2016 |  | 2015
Current tax, federal |  | $ 787,539 |  | $ 613,691
Current tax, state |  | 194,594 |  | 151,637
Current tax, foreign |  | - |  | -
Current tax, total |  | 982,133 |  | 765,328
Deferred income tax, federal |  | 41,343 |  | 77,365
Deferred income tax, state |  | 10,215 |  | 19,116
Deferred income tax, foreign |  | 252,235 |  | (58,324)
Deferred income tax, total |  | 303,793 |  | 38,157
Total |  | $ 3,191,056 |  | $ 803,485
The following table reconciles the income tax benefit at the U.S. Federal statutory rate to income tax benefit at the Company's effective tax rates.
|  | 2016 |  | 2015
Income (loss) before taxes |  | 3,079,260 |  | 2,308,181
US statutory tax rates |  | 39.12% |  | 39.12%
Expected income tax (recovery) |  | 1,207,840 |  | 902,845
Non-deductible items |  | (139,975) |  | 39,872
Change in estimates |  | 228,495 |  | 12,336
Change in enacted tax rate |  | 4,437 |  | (158,840)
Option expired during the year |  | 8,418 |  | 35,685
Foreign tax rate difference |  | (46,498) |  | (40,393)
Change in valuation allowance |  | 22,878 |  | 11,977
Total income taxes (recovery) |  | 1,285,595 |  | 803,483
Current income tax expenses (recovery) |  | 982,133 |  | 765,328
Deferred tax expenses (recovery) |  | 303,792 |  | 38,156
Total income taxes (recovery) |  | 1,285,925 |  | 803,484
Deferred taxes reflect the tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes. Deferred tax assets (liabilities) at December 31, 2016 and 2015 are comprised of the following:
Canada |  | 2016 |  | 2015
Non capital loss carryforwards |  | 830,476 |  | 1,068,935
Patents |  | 45,351 |  | 36,070
Fixed assets |  | 848,843 |  | 809,404
Financial instruments |  | - |  | -
|  | 1,724,670 |  | 1,914,409
Valuation Allowance |  | - |  | -
Net Deferred tax asset (liability) |  | 1,724.670 |  | 1,914,409
USA |  |  |  |
|  | 2016 |  | 2015
Fixed Assets |  | 322,634 |  | 353,907
Stock-Based Compensation |  | 209,242 |  | 206,648
|  | 531,876 |  | 560,556
Deferred tax asset not recognized |  | 229,547 |  | 206,669
Net Deferred tax asset |  | 302,329 |  | 353,886
The Company has non-operating loss carryforwards of approximately $3,075,838 (2015 - $3,959,018) which may be carried forward to apply against future year income tax for Canadian income tax purposes, subject to the final determination by taxation authorities, expiring in the following years:
Expiry |  | Loss
2030 |  | 656,645
2031 |  | 805,757
2032 |  | 927,780
2033 |  | 683,283
2034 |  | -
2035 |  | -
2036 |  | -
2037 |  | 2,372
Total |  | 3,075,838
As at December 31, 2016, the Company has no net operating losses carryforward available for US tax purposes. Accounting for Uncertainty for Income Tax Effective January 1, 2009, the Company adopted the interpretation for accounting for uncertainty in income taxes which was an interpretation of the accounting standard accounting for income taxes. This interpretation created a single model to address accounting for uncertainty in tax positions. This interpretation clarifies the accounting for income taxes, by prescribing a minimum recognition threshold a tax position is required to meet before being recognized in the financial statements. As at December 31, 2016 and 2015, the Company’s consolidated balance sheets did not reflect a liability for uncertain tax positions, nor any accrued penalties or interest associated with income tax uncertainties. The Company has no income tax examinations in progress.

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- 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://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08.(h)) -URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=65882285&loc=d3e32559-109319 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 15 -URI http://asc.fasb.org/extlink&oid=65882285&loc=d3e32718-109319 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 9 -URI http://asc.fasb.org/extlink&oid=65882285&loc=d3e32639-109319 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=65882285&loc=d3e32537-109319 + Details
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