Income Tax

12 Months Ended

Dec. 31, 2017

Income Tax Disclosure [Abstract]

Income Tax

11.       Income Tax

The provision for income tax expense (benefit) is comprised of the following:

	2017			2016
Current tax, federal	$	547,486		$	787,539
Current tax, state		132,833			194,594
Current tax, foreign		-			-
Current tax, total		680,319			982,133
Deferred income tax, federal		(11,069	)		41,343
Deferred income tax, state		(2,686	)		10,215
Deferred income tax, foreign		385,639			252,235
Deferred income tax, total		371,884			303,793
Total	$	1,052,203		$	3,191,056

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.

	2017			2016
Income (loss) before tax, net of tax from gain on involuntary disposition		3,420,556			3,079,260
Tax from gain on involuntary disposition		(613,611	)		-
Income (loss) before taxes		2,806,945			3,079,260
US statutory tax rates		39.69	%		39.12	%
Expected income tax (recovery)		1,114,147			1,207,840
Non-deductible items		520,665			(139,975	)
Change in estimates		(91,632	)		228,495
Change in enacted tax rate		189,626			4,437
Option expired during the year		21,640			8,418
Foreign tax rate difference		(662,381	)		(46,498	)
Change in valuation allowance		(39,863	)		22,878
Total income taxes (recovery)		1,052,203			1,285,595
Current income tax expenses (recovery)		680,318			982,133
Deferred tax expenses (recovery)		371,884			303,792
Total income taxes (recovery)		1,052,203			1,285,925

Deferred taxes reflect the tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes. Deferred tax assets (liabilities) at December 31, 2017 and 2016 are comprised of the following:

Canada	2017		2016
Non capital loss carryforwards		1,378,242		830,476
Patents		69,597		45,351
Fixed assets		-		848,843
Financial instruments		-		-
		1,447,839		1,724,670
Valuation Allowance		-		-
Net Deferred tax asset (liability)		1,447,839		1,724,670

USA
	2017		2016
Fixed Assets		351,746		322,634
Stock-Based Compensation		154,023		209,242
		505,768		531,876
Deferred tax asset not recognized		189,684		229,547
Net Deferred tax asset		316,084		302,329

The Company has non-operating loss carryforwards of approximately $5,097,682 (2016 - $3,075,838) which may be carried forward to apply against future year income tax for Canadian income tax purposes, subject to the final determination by taxation authorities, expiring in the following years:

Expiry	Loss
2029		710,778
2030		862,371
2031		992,967
2032		649,299
2033		77,587
2037		1,804,680
Total		5,097,682

As at December 31, 2017, the Company has no net operating losses carryforward available for US tax purposes.

Accounting for Uncertainty for Income Tax

Effective January 1, 2009, the Company adopted the interpretation for accounting for uncertainty in income taxes which was an interpretation of the accounting standard accounting for income taxes. This interpretation created a single model to address accounting for uncertainty in tax positions. This interpretation clarifies the accounting for income taxes, by prescribing a minimum recognition threshold a tax position is required to meet before being recognized in the financial statements.

As at December 31, 2017 and 2016, the Company’s consolidated balance sheets did not reflect a liability for uncertain tax positions, nor any accrued penalties or interest associated with income tax uncertainties. The Company has no income tax examinations in progress.