Income taxes (Tables)

12 Months Ended

Dec. 31, 2014

Schedule of Income tax Expense (Recovery)

Income tax expense (recovery) varies from the amounts that would be computed by applying the expected Canadian income tax rate (26%) and U.S. income tax rates (35%). The combined Canadian and U.S. income tax rates of 27.3% (2013 – 25.6%; 2012 – 25.1%) was applied to loss before income taxes as shown in the following table:


	DECEMBER 31, 2014			DECEMBER 31, 2013			DECEMBER 31, 2012
Computed taxes at combined Canadian and U.S. tax rates	$	(6,561,056	)	$	(2,235,488	)	$	(1,936,264	)
Change in Canadian tax rate		—			(363,706	)		—
Non-deductible expenses		185,041			93,663			119,829
Investment tax credits⁽ⁱ⁾		(222	)		(5,044	)		42,294
Change in valuation allowance		4,519,695			2,500,412			1,719,347
Reversal of tax benefit related to taxable preferred stock		1,684,713			—			—
Other impact upon conversion of taxable preferred stock		171,607			5,119			97,088

Income tax (recovery) expense ⁽ⁱ⁾	$	(222	)	$	(5,044	)	$	42,294

⁽ⁱ⁾

Income tax (recovery) expense for the years ended December 31, 2014, 2013 and 2012 were all related to AQXP Canada’s Canadian investment tax credits. For periods prior to June 2010, AQXP Canada was able to claim Canadian refundable investment tax credits. As described in Note 2(i), when investment tax credits subsequently received are less or more than originally recorded, the difference is treated as a change in estimate and recorded as part of current income tax expense (recovery); in 2012 claims received were less than originally recorded and accordingly AQXP Canada recognized an income tax expense for this difference.

Schedule of Net (Loss) Income Before Taxes


	DECEMBER 31, 2014			DECEMBER 31, 2013			DECEMBER 31, 2012
Net (loss) income before taxes:
Canada	$	(20,538,640	)	$	(8,881,697	)	$	(7,431,876	)
U.S.		(3,488,598	)		147,282			(240,028	)

Total	$	(24,027,238	)	$	(8,734,415	)	$	(7,671,904	)

Components of Deferred Income Tax Assets

The significant components of the deferred income tax assets are as follows:


	DECEMBER 31, 2014			DECEMBER 31, 2013
Canadian net operating losses	$	13,858,491		$	10,560,895
U.S. net operating losses		1,403,318			477,682
Research and development deductions and credits		4,947,218			4,933,498
Other		404,810			122,066
Less: valuation allowance		(20,613,837	)		(16,094,141	)

Net deferred income tax assets	$	—		$	—