XML 34 R20.htm IDEA: XBRL DOCUMENT
v3.19.1

Income Tax | 12 Months Ended
--- | ---
Dec. 31, 2018
Income Tax Disclosure [Abstract] |
Income Tax | 14. Income Tax The provision for income tax expense (benefit) is comprised of the following:
|  | 2018 |  |  | 2017 |
Current tax, federal |  | $ | 547,486 |  |  | $ | 547,486 |
Current tax, state |  |  | 132,833 |  |  |  | 132,833 |
Current tax, foreign |  |  | - |  |  |  | - |
Current tax, total |  |  | 680,319 |  |  |  | 680,319 |
Deferred income tax, federal |  |  | (11,069 | ) |  |  | (11,069 | )
Deferred income tax, state |  |  | (2,686 | ) |  |  | (2,686 | )
Deferred income tax, foreign |  |  | 385,639 |  |  |  | 385,639 |
Deferred income tax, total |  |  | 371,884 |  |  |  | 371,884 |
Total |  | $ | 1,052,203 |  |  | $ | 1,052,203 |
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.
|  | 2018 |  |  | 2017 |
Income (loss) before tax, net of tax from gain on involuntary disposition |  |  | 3,054,847 |  |  |  | 3,420,556 |
Tax from gain on involuntary disposition |  |  | 693,063 |  |  |  | (613,611 | )
Income (loss) before taxes |  |  | 3,747,910 |  |  |  | 2,806,945 |
US statutory tax rates |  |  | 28.51 | % |  |  | 39.69 | %
Expected income tax (recovery) |  |  | 1,068,342 |  |  |  | 1,114,147 |
Non-deductible items |  |  | 627,995 |  |  |  | 520,665 |
Change in estimates |  |  | 61,361 |  |  |  | (91,632 | )
Change in enacted tax rate |  |  | - |  |  |  | 189,626 |
Option expired during the year |  |  | 5,191 |  |  |  | 21,640 |
Foreign tax rate difference |  |  | (396,514 | ) |  |  | (662,381 | )
Change in valuation allowance |  |  | (36,119 | ) |  |  | (39,863 | )
Total income taxes (recovery) |  |  | 1,061,609 |  |  |  | 1,052,203 |
Current income tax expenses (recovery) |  |  | 533,130 |  |  |  | 680,318 |
Deferred tax expenses (recovery) |  |  | 797,126 |  |  |  | 371,884 |
Total income taxes (recovery) |  |  | 1,061,609 |  |  |  | 1,052,203 |
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, 2018 and 2017 are comprised of the following:
|  | 2018 |  |  | 2017 |
Canada |  |  |  |  |  |  |  |
Non capital loss carryforwards |  |  | 556,462 |  |  |  | 1,378,242 |
Patents |  |  | 63,998 |  |  |  | 69,597 |
Fixed assets |  |  | (350 | ) |  |  | - |
Financial instruments |  |  | - |  |  |  | - |
|  |  | 620,110 |  |  |  | 1,447,839 |
Valuation Allowance |  |  | - |  |  |  | - |
Net Deferred tax asset (liability) |  |  | 620,110 |  |  |  | 1,447,839 |
|  |  | 2018 |  |  |  | 2017 |
USA |  |  |  |  |  |  |  |
Fixed Assets |  |  | 247,665 |  |  |  | 351,746 |
Intangible assets |  |  | (989,569 | ) |  |  | - |
Stock-Based Compensation |  |  | 173,739 |  |  |  | 154,023 |
|  |  | (568,165 | ) |  |  | 505,768 |
Deferred tax asset not recognized |  |  | 153,565 |  |  |  | 189,684 |
Net Deferred tax asset |  |  | (721,730 | ) |  |  | 316,084 |
The Company has non-operating loss carryforwards of approximately $2,060,971 (2017 - $5,097,682) 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 |
2032 |  |  | 401,480 |
2037 |  |  | 1,659,491 |
Total |  |  | 2,060,971 |
As at December 31, 2018, 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, 2018 and 2017, 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.

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