v3.22.1
Income taxes
 12 Months Ended
Dec. 31, 2021
Income Tax Disclosure [Abstract]  
Income taxes

11.       Income taxes

 

The provision for income taxes differs from the result that would be obtained by applying the statutory tax rate of 21% (2020 - 21%) to income (loss) before income taxes. The difference results from the following items:

 

          
   Year Ended
December 31,
2021		  Year Ended
December 31,
2020
Computed expected benefit of income taxes  $(1,773,096)  $(1,242,363)
Stock-based compensation   925,449    593,885 
Non-deductible interest expense   334,556    79,418 
Expiry of tax credits   773,050    929,432 
True up of prior year balances   99,348    1,214,608 
Increase (decrease) in valuation allowance   (359,307)   (1,574,980)
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:

 

          
   Year Ended
December 31,
2021		  Year Ended
December 31,
2020
Net operating loss carried forward  $35,414,853   $37,125,837 
Tax rate   21%   21%
Deferred income tax assets   7,437,119    7,796,426 
Valuation allowance   (7,437,119)   (7,796,426)
Net deferred income tax asset  $—     $—   

 

The potential benefit of the deferred income tax asset has not been recognized in these consolidated 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 $35,414,000 for utilization in the United States, the jurisdiction where they were incurred, will expire between 2022 and 2041 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 carryforwards:

 

     
Fiscal Year Amount Expiry Date
2002   2,504,000 2022
2003 $ 2,776,000 2023
2004   1,251,000 2024
2005   1,304,000 2025
2006   1,532,000 2026
2007   1,480,000 2027
2008   1,600,000 2028
2009   1,723,000 2029
2010   823,000 2030
2011   1,747,000 2031
2012   1,638,000 2032
2013   1,403,000 2033
2014   2,595,000 2034
2015   1,619,000 2035
2016   1,171,000 2036
2017   928,000 2037
2018   720,000 2038
2019   3,921,000 2039
2020   2,236,000 2040
2021   2,443,000 2041
Total $ 35,414,000