11. INCOME TAX

12 Months Ended

Dec. 31, 2016

Income Tax Disclosure [Abstract]

11. INCOME TAX

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

	2016	2015
Current tax, federal	$   787,539	$   613,691
Current tax, state	194,594	151,637
Current tax, foreign	-	-
Current tax, total	982,133	765,328
Deferred income tax, federal	41,343	77,365
Deferred income tax, state	10,215	19,116
Deferred income tax, foreign	252,235	(58,324)
Deferred income tax, total	303,793	38,157
Total	$   3,191,056	$   803,485

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.

	2016	2015
Income (loss) before taxes	3,079,260	2,308,181
US statutory tax rates	39.12%	39.12%
Expected income tax (recovery)	1,207,840	902,845
Non-deductible items	(139,975)	39,872
Change in estimates	228,495	12,336
Change in enacted tax rate	4,437	(158,840)
Option expired during the year	8,418	35,685
Foreign tax rate difference	(46,498)	(40,393)
Change in valuation allowance	22,878	11,977
Total income taxes (recovery)	1,285,595	803,483
Current income tax expenses (recovery)	982,133	765,328
Deferred tax expenses (recovery)	303,792	38,156
Total income taxes (recovery)	1,285,925	803,484

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, 2016 and 2015 are comprised of the following:

Canada	2016	2015
Non capital loss carryforwards	830,476	1,068,935
Patents	45,351	36,070
Fixed assets	848,843	809,404
Financial instruments	-	-
	1,724,670	1,914,409
Valuation Allowance	-	-
Net Deferred tax asset (liability)	1,724.670	1,914,409
USA
	2016	2015
Fixed Assets	322,634	353,907
Stock-Based Compensation	209,242	206,648
	531,876	560,556
Deferred tax asset not recognized	229,547	206,669
Net Deferred tax asset	302,329	353,886

The Company has non-operating loss carryforwards of approximately $3,075,838 (2015 - $3,959,018) 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
2030	656,645
2031	805,757
2032	927,780
2033	683,283
2034	-
2035	-
2036	-
2037	2,372
Total	3,075,838

As at December 31, 2016, 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, 2016 and 2015, 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.