INCOME TAXES

12 Months Ended

Dec. 31, 2023

Income Tax Disclosure [Abstract]

INCOME TAXES

13. INCOME TAXES

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

	2023			2022
Current tax, federal	$	753,683		$	1,017,059
Current tax, state		340,952			460,098
Current tax, foreign		151,236			216,082
Current tax		1,245,871			1,693,239
Income tax recovery		(1,127,689	)		(1,476,088	)
Current tax, total		118,182			217,151
Deferred income tax, federal		(172,763	)		(49,088
Deferred income tax, state		(78,154	)		(22,207
Deferred income tax, foreign		-			-
Deferred income tax, total		(250,917	)		(71,295
Total	$	(132,735	)	$	145,856

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.

	2023			2022
Income before tax	$	3,623,250		$	7,859,085
US statutory tax rates		30.50	%		30.50	%
Expected income tax		1,105,091			2,397,021
Non-deductible items		362,554			(243,167	)
Change in estimates and other		(1,585,427	)		(2,004,041	)
Foreign tax rate difference		(92,379	)		(226,611	)
Change in valuation allowance		77,426			(222,654	)
Total income taxes		(132,735	)		145,856
Current income tax expense		118,182			217,151
Deferred tax recovery		(250,917	)		(71,295	)
Total income tax expense (recovery)	$	(132,735	)	$	145,856

Included in current income tax expense for the year ended December 31, 2023 is a recovery of $1,127,689 (2022 - $1,476,088) for a revision of estimated current taxes payable for previous years.

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, 2023 and 2022 are comprised of the following:

	2023			2022
Canada
Non capital loss carryforwards	$	855,176		$	891,954
Intangible assets		-			-
Property, equipment and leaseholds		30,916			47,279
		886,092			939,233
Valuation allowance		(886,092	)		(939,233	)
Net deferred tax asset	$	-		$	-
US
		2023			2022
Net operating loss carryforwards	$	-		$	-
Intangible assets		(11,346	)		(6,070	)
Investments		-			(7,676	)
Property, equipment and leaseholds		(248,701	)		(486,713	)
Property, equipment and leaseholds		284,794			274,289
Financial instruments		-			-
Deferred tax asset not recognized		-			-
Net deferred tax asset (liability)	$	24,747		$	(226,170	)

The Company has non-capital loss carryforwards of approximately $3,718,155 (2022 - $3,878,060) 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
2030		407,947
2031		941,856
2032		615,878
2037		1,692,555
2039		48,048
2040		11,871
Total		3,718,155

As at December 31, 2023, the Company has no net operating loss carryforwards available for US tax purposes.

Accounting for Uncertainty for Income Tax

As at December 31, 2023 and 2022, the Company’s consolidated balance sheets did not reflect an asset for uncertain tax positions but did account for accrued penalties or interest associated with income taxes not yet filed. The Company has no income tax examinations in progress.