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Income tax expense (Tables)
12 Months Ended
Dec. 31, 2021
Income tax expense  
Income Tax Expense

For the years ended December 31,

 

 

2021

 

 

2020

 

 

2019

 

 

 

 

 

(Adjusted – Note 2)

 

 

(Adjusted – Note 2)

 

Net loss before income taxes

 

$(3,123,799)

 

$(6,028,228)

 

$3,794,709

 

Canadian statutory income tax rate

 

 

23.0%

 

 

24.0%

 

 

26.5%

Income tax (recovery) at statutory income tax rate

 

 

(718,474)

 

 

(1,446,775)

 

 

1,005,598

 

Effect of non- deductible expenses and other items:

 

 

 

 

 

 

 

 

 

 

 

 

Stock-based compensation and other expenses

 

 

67,948

 

 

 

44,225

 

 

 

11,609

 

Change in statutory tax rates

 

 

(92,850)

 

 

(131,242)

 

 

918,821

 

Foreign exchange adjustments

 

 

662

 

 

 

29,910

 

 

 

82,433

 

Other (Expired losses)

 

 

1,206,056

 

 

 

258,091

 

 

 

43,592

 

Change in valuation allowance

 

 

463,342

 

 

 

(1,245,791)

 

 

2,062,053

 

Income tax expense (recovery)

 

 

(463,342)

 

 

1,245,791

 

 

 

(2,062,053)
Valuation Allowance

For the years ended December 31,

 

 

2021

 

 

2020

 

 

2019

 

Net operating losses carried forward:

 

 

 

 

 

 

 

 

 

 Canada (expiration dates 2027 to 2040)

 

$8,051,504

 

 

$7,809,363

 

 

$6,840,817

 

 USA (expiration dates 2022 to 2026)

 

 

248,289

 

 

 

1,223,212

 

 

 

1,494,711

 

Timing differences on property & equipment, Right

 

 

 

 

 

 

 

 

 

 

 

 

of Use of Assets, Lease obligations and financing costs

 

 

1,674,085

 

 

 

1,945,086

 

 

 

1,805,012

 

SRED Expenditures

 

 

575,747

 

 

 

369,522

 

 

 

348,341

 

Foreign Tax Credit

 

 

285,772

 

 

 

285,772

 

 

 

285,772

 

 

 

 

10,835,397

 

 

 

11,632,955

 

 

 

10,774,653

 

Intellectual property

 

 

(3,411,411)

 

 

(3,745,627)

 

 

(4,133,115)

Less valuation allowance

 

 

7,423,986

 

 

 

7,887,328

 

 

 

6,641,538

 

 

 

 

(7,423,986)

 

 

(7,887,328)

 

 

(6,641,538)