INCOME TAXES

12 Months Ended

Dec. 31, 2019

Income Tax Disclosure [Abstract]

INCOME TAXES [Text Block]

8.      INCOME TAXES

The Company was subject to United States federal income taxes at an approximate rate of 21%.  The reconciliation of the provision for income taxes at the United States federal statutory rate compared to the Company's income tax expense as reported is as follows:

		December 31, 2019			December 31, 2018
Net income (loss) for the year	$	15,765		$	(770,853	)
Statutory rate		21%			21%
Expected income tax expense (recovery)		3,000			(162,000	)
Impact of statutory tax rate on earnings of subsidiary		11,000			(26,000	)
Non-taxable earnings		49,000			24,000
Adjustment to prior year tax  provision		—			1,000
Change in valuation allowance		(63,000	)		151,000
	$	—		$	(12,000	)

 

The significant components of deferred income tax assets at December 31, 2019 and December 31, 2018 are as follows:

		December 31, 2019			December 31, 2018
Net operating losses	$	1,705,000		$	1,706,000
Intangible assets		11,000			67,000
		1,716,000			1,773,000
Valuation allowance		(1,716,000	)		(1,773,000	)
	$	—		$	—

At December 31, 2019, the Company had accumulated non-capital loss carry-forwards of approximately $7,599,000 that may be carried forward indefinitely, subject to limitations. The potential future tax benefits of these expenses and losses carried-forward have not been reflected in these financial statements due to the uncertainty regarding their ultimate realization. Tax attributes are subject to review, and potential adjustment by tax authorities.