INCOME TAXES

12 Months Ended

Dec. 31, 2021

Income Tax Disclosure [Abstract]

INCOME TAXES

14. Income Taxes

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

	2021		2020
Current tax, federal	$	1,309,503	$	739,113
Current tax, state		592,394		334,361
Current tax, foreign		91,285		124,414
Current tax, total		1,993,182		1,197,888
Deferred income tax, federal		250,153		158,308
Deferred income tax, state		113,164		71,616
Deferred income tax, foreign		-		179,629
Deferred income tax, total		363,317		409,553
Total	$	2,356,499	$	1,607,441

The following table reconciles the income tax expense at the U.S. Federal statutory rate to income tax expense at the Company’s effective tax rates.

	2021			2020
Income before tax	$	6,650,756		$	5,190,975
US statutory tax rates		30.50	%		30.50	%
Expected income tax		2,028,481			1,583,247
Non-deductible items		(29,508	)		(60,470	)
Change in estimates and other		(65,027	)		603,422
Change in enacted tax rate		337,961			-
Foreign tax rate difference		(86,696	)		(120,372	)
Change in valuation allowance		171,288			(398,386	)
Total income taxes		2,356,499			1,607,441
Current income tax expense		1,993,182			1,197,888
Deferred tax expense (recovery)		363,317			409,553
Total income tax expense	$	2,356,499		$	1,607,441

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, 2021 and 2020 are comprised of the following:

	2021			2020
Canada
Non capital loss carryforwards	$	1,443,371		$	1,638,357
Intangible assets		19,849			18,863
Property, equipment and leaseholds		587,408			624,016
Financial instruments		-			26,690
		2,050,628			2,307,926
Valuation allowance		(2,050,628	)		(2,307,926	)
Net deferred tax asset	$	-		$	-
US
		2021			2020
Net operating loss carryforwards	$	-		$	-
Intangible assets		-			-
Investments		(241,880	)		(167,635	)
Property, equipment and leaseholds		(68,282	)		(66,116	)
Property, equipment and leaseholds		12,697			201,393
Financial instruments		-			98,210
Deferred tax asset not recognized		-			-
Net deferred tax asset (liability)	$	(297,465	)	$	65,852

The Company has non-capital loss carryforwards of approximately $6,275,526 (2020 - $6,068,054) 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:

`	Loss
2029		891,014
2030		1,081,844
2031		1,245,577
2037		2,238,533
2038		372,149
2039		72,378
2040		166,494
2041		207,537
Total		6,275,526

As at December 31, 2021, the Company has no net operating loss carryforwards available for US tax purposes.

Accounting for Uncertainty for Income Tax

As at December 31, 2021 and 2020, 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.