Income Taxes

12 Months Ended

Dec. 31, 2022

Income Tax Disclosure [Abstract]

Income Taxes [Text Block]

18. Income Taxes

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

		2022			2021
Loss before income taxes	$	(12,082,636	)	$	(4,901,397	)
Expected income tax recovery at the statutory rate of 21% (2021-21%)		(2,537,354	)		(1,029,293	)
Foreign tax rate differences		(133,836	)		(144,045	)
Prior year adjustments		50,972			62,575
Foreign exchange effect on deferred tax assets and other		112,591			1,702
Permanent differences		1,545,782			163,693
Change in valuation allowance		889,757			909,826
Provision for income taxes	$	(72,088	)	$	(35,542	)

The Company's income tax provision is allocated as follows:

Current Tax (recovery)		-			(26,505	)
Deferred Tax (recovery)		(72,088	)		(9,037	)
	$	(72,088	)	$	(35,542	)

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:

		2022			2021
Net operating loss carry forwards	$	3,742,661		$	2,836,838
Financing costs		84,502			31,614
Depreciable and amortizable assets		9,123			(67,349	)
Land		(171,469	)		(184,369	)
Convertible promissory notes		(110,924	)		110,026
Other timing differences		136,549			-
Total gross deferred income tax assets		3,690,442			2,726,760
Less: valuation allowance		3,690,442			(2,800,685	)
Total deferred income tax liabilities	$	-		$	(73,925	)

 

Movement in deferred income tax liabilities:		2022			2021
Balance at the beginning of the year	$	(73,925	)	$	(82,501	)
Recognized in profit/loss		72,088			9,037
Recognized in OCI		1,837			(461	)
Balance at the end of the year	$	-		$	(73,925	)

As at December 31, 2022 and 2021, 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 carry forward of $5,537,874 (2021-$3,400,418) which can be carried forward indefinitely and Canadian NOL available for carry forward of $9,734,745 (C$13,185,352) (2021-$7,918,029; C$10,038,069) which expire in the years 2036 through 2042.