Note 11 - Income Taxes

9 Months Ended

Sep. 30, 2018

Notes to Financial Statements

Income Tax Disclosure [Text Block]

NOTE

11

– INCOME TAXES

A reconciliation of the effective tax rate of the income tax benefit and the statutory income tax rates applied to the loss before income taxes is as follows for the

nine

-months ended

September 30:

	2018			2017
Income tax benefit at Canadian statutory rate		26.5	%		26.5	%
Valuation allowance		(26.5%	)		(26.5%	)
Effective income tax rate		0	%		0	%

As of

September 30, 2018,

the Company has net operating loss carryforwards of approximately

$33,400,000

that

may

be available to reduce future years’ taxable income. Such carryforwards typically expire after

20

years. The Company currently has carry forwards that begin to expire in

2034.

Future tax benefits which

may

arise as a result of these losses have

not

been recognized in these consolidated financial statements, because the Company believes that it is more likely than

not

that the carryforwards will expire unused and accordingly, the Company has recorded a valuation allowance for the deferred tax asset relating to these tax loss carry-forwards. The deferred tax asset and associated valuation allowance are as follows for the period ended

September 30, 2018

and the year ended

December 31, 2017:

	2018			2017
Deferred tax asset - net operating losses	$	8,800,000		$	5,900,000
Deferred tax asset valuation allowance		(8,800,000	)		(5,900,000	)
Net deferred tax asset	$	-		$	-

All other temporary differences are immaterial both individually and in the aggregate to the consolidated financial statements.