Income taxes (Tables)

12 Months Ended

Dec. 31, 2015

Income tax 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 27.4% (2014 – 27.3%; 2013 – 25.6%) was applied to loss before income taxes as shown in the following table:


	DECEMBER 31, 2015			DECEMBER 31, 2014			DECEMBER 31, 2013
Computed taxes at combined Canadian and U.S. tax rates	$	(5,997	)	$	(6,561	)	$	(2,235	)
Change in Canadian tax rate		26			—			(364	)
Non-deductible expenses		446			185			94
Investment tax credits ⁽ⁱ⁾		—			—			(5	)
Change in valuation allowance		5,525			4,519			2,500
Reversal of tax benefit related to taxable preferred stock		—			1,685			—
Other impact upon conversion of taxable preferred stock		—			172			5

Income tax recovery ⁽ⁱ⁾	$	—		$	—		$	(5	)

⁽ⁱ⁾

Income tax recovery for the years ended December 31, 2015, 2014 and 2013 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 recovery.

Schedule of Net (Loss) Income Before Taxes

	DECEMBER 31, 2015			DECEMBER 31, 2014			DECEMBER 31, 2013
Net (loss) income before taxes:
Canada	$	(18,382	)	$	(20,538	)	$	(8,881	)
U.S.		(3,478	)		(3,489	)		147

Total	$	(21,860	)	$	(24,027	)	$	(8,734	)

Components of Deferred Income Tax Assets

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


	DECEMBER 31, 2015			DECEMBER 31, 2014
Canadian net operating losses	$	18,282		$	13,858
U.S. net operating losses		2,499			1,403
Research and development deductions and credits		4,947			4,947
Other		410			405
Less: valuation allowance		(26,138	)		(20,613	)

Net deferred income tax assets	$	—		$	—