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Income Taxes
 12 Months Ended
Dec. 31, 2011
Income Taxes

11.      Income Taxes

 

The Company operates in both U.S. and Canadian tax jurisdictions.  Its income is subject to varying rates of tax and losses incurred in one jurisdiction cannot be used to offset income taxes payable in another.  A reconciliation of the combined Canadian federal and provincial income tax rate with the Company’s effective tax rate is as follows:

 

    Year Ended
December 31,		     Year Ended
December 31,		  
    2011     2010  
Domestic loss     5,623       (7,100 )
Foreign loss     (938 )     (723 )
Loss before income taxes     4,685       (7,823 )
                 
Expected statutory rate (recovery)     28.25 %     28.25 %
Expected provision for (recovery of) income tax     1,324       (2,339 )
Permanent differences     (2,209 )     1,686  
Change in valuation allowance     (589 )     2,334  
Non-refundable investment tax credits     157       (196 )
Effect of foreign exchange rate differences     (204 )     (585 )
Effect of change in future enacted tax rates     (77 )     -  
Effect of tax rate changes and other     1,599       (900 )
Provision for income taxes   $ -     $ -  

 

The Canadian statutory come tax rate of 28.25 percent is comprised of federal income tax at approximately 16.5 percent and provincial income tax at approximately 11.75 percent.

 

The primary temporary differences which gave rise to future income taxes (recovery) at December 31, 2011, December 31, 2010:

 

    December 31,
2011		     December 31,
2010		  
Future tax assets:                
SR&ED expenditures     2,071       2,228  
Income tax loss carryforwards     19,635       20,008  
Non-refundable investment tax credits     1,719       1,719  
Share issue costs     84       81  
Accrued expenses     -       9  
Fixed and intangible assets     685       737  
Harmonization credit     280       280  
      24,193       25,062  
Less: valuation allowance     (24,193 )     (25,062 )
Net future tax assets   $ -     $ -  

 

There are no current income taxes owed, nor are any income taxes expected to be owed in the near term.

 

At December 31, 2011 the Company has unclaimed Scientific Research and Experimental Development ("SR&ED") expenditures, income tax loss carry forwards and non-refundable investment tax credits.  The unclaimed amounts and their expiry dates are as listed below:

 

      Federal     Province/ State  
SR&ED expenditures (no expiry)     $ 7,872     $ 1,580  
Income tax loss carryforwards (expiry date):                  
2014       6,089       6089  
2015       11,499       11,499  
2021       26       -  
2022       233       -  
2023       133       -  
2024       1,536       1,455  
2025       4,795       4,768  
2026       20,562       20,496  
2027       8,340       8,320  
2028       10,840       10,823  
2029       8,502       8,502  
2030       2,587       2,586  
2031       3,399       3,399  
Investment tax credits (expiry date):                  
2018       10          
2019       8          
2020       96          
2021       55          
2022       548          
2023       399          
2024       178          
2025       199          
2026       86          
2027       90          
2028       50