Income taxes

12 Months Ended

Oct. 31, 2018

Statements Line Items

Income taxes [Text Block]

14.      Income taxes

(a) The Company has non-capital losses of approximately $29 million available to reduce future taxable income, the benefit of which has not been recognized in these consolidated financial statements. At October 31, 2018, the tax losses expire as follows:

		Canada		Other foreign		Total
2026	$	1,826,168	$	-	$	1,826,168
2027		1,535,663		-		1,535,663
2028		-		-		-
2029		1,573,852		452,762		2,026,614
2030		2,123,536		1,880,897		4,004,433
2031		1,279,365		18,526		1,297,891
2032		1,417,868		325,793		1,743,661
2033		1,718,596		157,463		1,876,059
2034		2,486,226		679,089		3,165,315
2035		2,809,651		570,901		3,380,552
2036		3,297,284		441,019		3,738,303
2037		2,639,572		232,719		2,872,291
2038		1,625,600		-		1,625,600
	$	24,333,381	$	4,759,169	$	29,092,550

(b)	In addition, the Company has available capital loss carry forwards of approximately $1.3 million to reduce future taxable capital gains, the benefit of which has not been recognized in these consolidated financial statements. These losses carry forward indefinitely.
(c)	Deferred income taxes reflect the net tax effect of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant components of the Company’s deferred tax assets and liabilities are as follows:

		2018			2017			2016
Non-capital losses and other	$	7,698,859		$	7,277,434		$	7,139,329
Capital losses		175,090			350,180			165,164
Property, equipment, patents and deferred costs		1,567,228			1,598,394			1,769,064
Share issuance costs		-			-			1,881
	$	9,441,177		$	9,226,008		$	9,075,438
Deferred tax asset not recognized		(9,441,177	)		(9,226,008	)		(9,075,438	)
	$	-		$	-		$	-

At October 31, 2018, the Company has assessed that it is not probable that sufficient taxable profit will be availableto use deferred income tax assets based on operating losses in prior years; therefore, there are no balances carried in the consolidated statements of financial position for such assets.

(d) The reconciliation of income tax attributed to continuing operations computed at the statutory tax rates to income tax expense is as follows:

		2018			2017			2016
Loss before income taxes	$	(2,362,239	)	$	(4,346,200	)	$	(6,805,535	)
Statutory tax rate		26.50%			26.50%			26.50%
Expected income tax recovery	$	(625,993	)	$	(1,151,743	)	$	(1,803,467	)
Non-deductible expenses and other items		182,056			413,499			130,211
Effect of exchange rate on deferred tax assets carried forward		225,846			424,023			142,518
Effect of higher tax rates in foreign jurisdiction		-			163,651			(446,821	)
Change in deferred income tax rates and other		-			-			1,641,838
Change in deferred tax assets not recognized		218,091			150,570			335,721
	$	-		$	-		$	-