Income Taxes

12 Months Ended

Dec. 31, 2015

Income Tax Disclosure [Abstract]

Income Taxes

NOTE 5 - INCOME TAXES

The following table summarizes the activities for the year ended December 31,:

	2015			2014
Statutory tax rate:
U.S.		34	%		34	%
Foreign		26.5	%		26.5	%
Loss from operations before recovery of income taxes:
U.S.	$	(4,312,121	)	$	(6,327,215	)
Foreign		(12,189	)		(474,304	)
		(4,324,310	)	$	(6,801,519	)
Expected income tax recovery		(1,449,550	)	$	(2,385,209	)
Permanent differences		10,557			8,417
Tax rate changes and other adjustments		(345,834	)		(363,546	)
Increase in valuation allowance		1,784,827			2,740,338
Income tax recovery from continuing operations		-		$	-

The Company’s income tax recovery is allocated as follows:

The Company’s deferred tax assets and liabilities as at December 31, 2015 and 2014 are as follows:

	2015			2014
Deferred Tax Assets
Non-capital losses	$	17,908,732		$	16,315,501
Reserve – Contingency		171,410			237,944
Property, plant and equipment		335,475			282,503
Accounts receivable		237,944			191,172
Accrued expenses		514			514
Fees and Payroll in Stocks and Options		319,528			318,325
Impairment Reserve		455,190			385,116
Other		2,032			-
		19,430,825			17,731,075
Deferred Tax Liabilities
Property, plant and equipment		(408,602	)		(493,679	)
Less: Valuation allowance		(19,022,223	)		(17,237,396	)
	$	-		$	-

The Company’s non-capital income tax losses expire as follows:

U.S.	2029	$	526,411
	2030		6,080,091
	2031		9,240,965
	2032		10,853,750
	2033		10,436,738
	2034		5,929,097
	2035		1,717,918
		$	44,784,970
Foreign	2030	$	1,224,680
	2031		1,818,894
	2032		1,284,807
	2033		607,349
	2034		670,890
	2035		66,909
		$	5,673,529

The Company calculates its income tax expense by estimating the annual effective tax rate and applying that rate to the year-to-date ordinary income (loss) at the end of the period. The Company records a tax valuation allowance when it is more likely than not that it will not be able to recover the value of its deferred tax assets. For the years ended December 31, 2015 and 2014, the Company calculated its estimated annualized effective tax rate at 0% and 0%, respectively, for both the United States and Canada. The Company had no income tax expense on its $4,098,856 and $6,792,799 losses from continuing operations and $199,452 and $8,720 gain and loss, respectively, from discontinued operations for the years ended December 31, 2015 and 2014, respectively.

The Company recognizes the financial statement benefit of a tax position only after determining that the relevant tax authority would more likely than not sustain the position following an audit. For tax positions meeting the more-likely-than-not threshold, the amount recognized in the financial statements is the largest benefit that has a greater than 50% likelihood of being realized upon ultimate settlement with the relevant tax authority. The Company recognizes interest accrued on uncertain tax positions as well as interest received from favorable tax settlements within interest expense. The Company recognizes penalties accrued on unrecognized tax benefits within selling, general and administrative expenses. As of December 31, 2015 and 2014, the Company had no uncertain tax positions.

The Company does not anticipate any significant changes to the total amounts of unrecognized tax benefits in the next twelve months. The years ended December 31, 2009 through December 31, 2015 are open tax years.