Income Taxes

12 Months Ended

Dec. 31, 2019

Income Tax Disclosure [Abstract]

Income Taxes [Text Block]

20. Income Taxes

The Company’s income tax provision has been calculated as follows:

		2019			2018
Loss before income taxes	$	(2,895,185	)	$	(3,894,016	)
Expected income tax recovery at the statutory rate of 21% (2018-21%)		(607,989	)		(817,743	)
Foreign tax rate differences		(159,235	)		(213,459	)
Foreign exchange effect on deferred tax assets and other		(162,119	)		51,968
Permanent differences		286,520			637,593
Change in valuation allowance		642,823			341,641
Provision for income taxes	$	—		$	—

Deferred tax assets and liabilities

The tax effects of temporary differences that give rise to significant components of the deferred income tax assets and deferred income tax liabilities are presented below:

		2019			2018
Net operating loss carry forwards	$	1,818,035		$	1,157,180
Financing costs		194,874			143,260
Depreciable and amortizable assets		(210,805	)		(141,159	)
Total gross deferred income tax assets		1,802,104			1,159,281
Less: valuation allowance		(1,802,104	)		(1,159,281	)
Total deferred income tax assets	$	—		$	—

As at December 31, 2019 and 2018, the valuation allowance was due to the history of losses generated. The valuation allowance is reviewed periodically and if the assessment of the more likely than not criteria changes, the valuation allowance is adjusted accordingly.

Potential benefits of income tax losses are not recognized in the accounts until realization is more likely than not. The Company computes tax asset benefits for net operating losses ("NOL") carried forward.

The Company has US NOL available for carryforward of $1,109,013 ($1,440,464 CAD) (2018-$294,428; $401,675 CAD) a portion of which, $76,211 ($98,988 CAD), expires in the year 2037 and the balance indefinitely and Canadian NOL available for carryforward of $5,751,498 ($7,470,448 CAD) (2018-$4,366,717; $5,957,322 CAD) which expire in the years 2023 through 2039.

In addition, the Company has capital losses carried forward totaling $107,785 ($139,999 CAD). These losses can be carried forward indefinitely.

Also, the Company was assessed certain penalties from the internal revenue service in the amount of $30,000, for which the Company has requested relief.