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Income Taxes
 12 Months Ended
Dec. 31, 2018
Income Tax Disclosure [Abstract]  
Income Taxes

7.

Income Taxes


As at December 31, 2018 and 2017, the Company had no accrued interest and penalties related to uncertain tax positions.  Reconciliation of the statutory tax rate of 21% (2017 - 34%) and income tax benefits at those rates to the effective income tax rates and income tax benefits reported in the statement of operations and comprehensive loss is as follows:


 

For the Years Ended December 31,

 

2018

 

2017

 

 

 

 

Loss before income tax

       $       (258,861)

 

     $   (1,237,085)

 

 

 

 

Expected income tax recovery

                   (54,361)

 

                (420,608)

Unrealized foreign exchange

                     (1,482)

 

                  (97,154)

other permanent difference

                     35,309

 

                   50,677

Change in valuation allowance

                     20,534

 

                  467,085

Income tax expense

       $                 -   

 

       $               -   

 

 

 

 

 

 

 

 

The following table summarizes the significant components of deferred tax:

 

 

 

 

 

For the Years Ended December 31,

 

2018

 

2017

Deferred tax asset:

 

 

 

Net operating loss carry forward

          $     1,201,400

 

         $   1,980,039

Exploration and development costs

                   212,334

 

                    340,494

Valuation allowance

               (1,413,734)

 

(2,320,533)

Total

          $                - 

 

          $              - 


The Company has net operating loss carryovers of approximately $4,464,000 for federal and state income tax purposes, which begin to expire in 2029. The ultimate realization of the net operating loss is dependent upon future taxable income, if any, of the Company. Based on losses from inception, the Company determined that as of December 31, 2018 it is more likely than not that the Company will not realize benefits from the deferred tax assets. The Company will not record income tax benefits in the financial statements until it is determined that it is more likely than not that the Company will generate sufficient taxable income to realize the deferred income tax assets. As a result of the analysis, the Company determined that a valuation allowance against the deferred tax assets was required.


The tax years that remain subject to examination by major taxing jurisdictions are those for the years ended December 31, 2017, 2016, 2015, 2014, 2013, 2012, 2011 and 2010.