10. INCOME TAX (Tables)

12 Months Ended

Dec. 31, 2013

Income Tax Disclosure [Abstract]

Components of Income Tax Expense (Benefit)

	2013			2012
Current tax, federal	$	(110,302	)	$	921,247
Current tax, state		(24,418	)		205,221
Current tax, foreign		-			-
Current tax, total		(134,720	)		1,126,468
Deferred income tax, federal		(79,178	)		(73,111	)
Deferred income tax, state		-			-
Deferred income tax, foreign		(2,329,217	)		-
Deferred income tax, total		(2,408,395	)		(73,111	)
Total	$	(2,543,115	)	$	1,053,357

Schedule of Reconcilation of Income Taxes

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.

	2013			2012
Loss before taxes		(721,481	)		(31,090	)
US statutory tax rate		38.62	%		34.00	%
Expected income tax (recovery)		(278,635	)		(10,571	)
Non-deductible items		(396,793	)		(71,650	)
Change in estimates		(163,928	)		758
Change in enacted tax rate		91,711			-
Option expired during the year		20,878			-
Functional currency adjustments		164,890			(40,925	)
Foreign tax rate difference		365,377			217,576
Change in valuation allowance		(2,346,616	)		752,948
Total income taxes (recovery)		(2,543,115	)		848,136
Current income tax expenses (recovery)		(134,720	)		1,126,468
Deferred tax expenses (recovery)		(2,408,395	)		(73,111	)
Total income taxes (recovery)		(2,543,115	)		1,053,357

Deferred tax assets (liabilities)

Deferred tax assets (liabilities) at December 31, 2013 and 2012 are comprised of the following:

Canada	2013		2012
Non capital loss carryforwards		1,596,755		2,119,669
Patents		33,936		(118	)
Fixed Assets		698,526		199,983
		2,329,217		2,319,534
Valuation Allowance		-		2,319,534
Net Deferred tax asset (liability)		2,329,217		-
USA
		2013		2012
Net operating loss carryforwards		-		108,969
Fixed Assets		348,517		272,062
Stock-Based Compensation		213,662		147,051
		580,178		528,082
Deferred tax asset not recognized		208,889		235,971
Net Deferred tax asset		371,289		292,111

Non operating loss carryforwards

Expiry	Loss
2014		-
2015		75,153
2026		878,698
2027		789,096
2028		707,062
2029		973,931
2030		1,017,150
2031		1,171,186
2032		765,836
2033		8,908
Total		6,387,020