v2.4.0.8
10. Income taxes:
 12 Months Ended
Dec. 31, 2013
Income Tax Disclosure [Abstract]  
Income Tax Disclosure [Text Block]
10.   Income taxes:

The provision for income taxes differs from the result that would be obtained by applying the statutory tax rate of 34% (2012 - 34%) to income before income taxes. The difference results from the following items:

 
 
2013
   
2012
 
Computed expected benefit of income taxes
  $ (1,019,058 )   $ (2,831,744 )
Stock-based compensation
    83,270       1,903,205  
Non-deductible interest expense
    62,556       57,544  
Permanent differences
    718,312       -  
Increase in valuation allowance
    154,920       870,995  
Income tax provision
  $ -     $ -  

The components of the net deferred income tax asset, the statutory tax rate and the amount of the valuation allowance are as follows:

 
 
2013
   
2012
 
Net operating loss carried forward
  $ 29,141,241     $ 28,685,595  
Tax rate
    34 %     34 %
Deferred income tax assets
    9,908,022       9,753,102  
Valuation allowance
    (9,908,022 )     (9,753,102 )
Net deferred income tax asset
  $ -     $ -  

The potential benefit of the deferred income tax asset has not been recognized in these financial statements since it cannot be assured that it is more likely than not that such benefit will be utilized in future years. The Company believes that the available objective evidence creates sufficient uncertainty regarding the realizability of the deferred income tax assets such that a full valuation allowance has been recorded.

The operating losses amounting to $29,141,241 for utilization in the United States of America, the jurisdiction where they were incurred, will expire between 2019 and 2033 if they are not used. The following table lists the fiscal year in which the loss was incurred and the expiration date of the operating loss carry-forwards:

Fiscal Year
 
Amount
Expiry Date
1999
$
88,022
2019
2000
 
4,425,866
2020
2001
 
3,681,189
2021
2002
 
2,503,951
2022
2003
 
2,775,900
2023
2004
 
1,250,783
2024
2005
 
1,304,283
2025
2006
 
1,532,322
2026
2007
 
1,479,818
2027
2008
 
1,599,919
2028
2009
 
1,723,146
2029
2010
 
822,678
2030
2011
 
1,746,615
2031
2012
 
1,638,421
2032
2013
 
2,568,328
2033
Total
$
29,141,241