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Income taxes (Tables)

12 Months Ended

Dec. 31, 2018

The components of the income tax provision include:

	2018		2017
Current	$	-	$	-
Deferred		489		298
	$	489	$	298

Reconciliation of Combined Canadian Federal and Provincial Statutory Income Tax Rate to Effective Tax Rate

The reconciliation of the combined Canadian federal and provincial statutory income tax rate of 26.5% (2017 - 26.5%) to the effective tax rate is as follows:

	2018			2017
Income (loss) before income taxes	$	(18,716	)	$	2,789
Combined statutory tax rate		26.5	%		26.5	%
Theoretical tax expense (recovery)	$	(4,960	)	$	739
Non-deductible expenses:
Share-based payments		1,123			494
Meals and entertainment		18			-
Non-taxable income:
Non-taxable portion of capital gains		(83	)		(762	)
Effect of provincial tax rate difference		(4	)		5
Changes in unrecognized deferred tax assets		4,395			(178	)
Income tax expense	$	489		$	298

Summary of components of deferred tax

The components of deferred tax are summarized below. Deferred tax assets and liabilities have been offset where they relate to income taxes levied by the same taxation authority and the Company has the legal right and intent to offset.

	2018			2017
Deferred tax assets
Non-capital losses carried forward	$	5,175		$	5,690
Financing fees		315			31
Scientific research and experimental development		55			28
Finance lease obligation		42			-
Provisions		49			-

Deferred tax liabilities
Biological assets		(1,676	)		(986	)
Inventory		(1,639	)		(1,989	)
Investments in equity accounted investees		(41	)		(153	)
Other investments		(36	)		(91	)
Property, plant and equipment		(1,285	)		(968	)
Intangible assets		(2,809	)		(2,978	)
Net deferred tax liability	$	(1,850	)	$	(1,416	)

Summary of changes in net deferred tax liability

The changes in the net deferred tax liability are provided below:

	2018			2017
Balance - beginning of year	$	1,416		$	1,457
Recognized in income		489			298
Recognized in other comprehensive income		(55	)		(339	)
Balance - end of year	$	1,850		$	1,416

Summary of Net Deferred Tax Asset Not Recognized

Deferred tax assets have not been recognized in respect of the following deductible temporary differences because it is not probable that future taxable profit will be available against which the Company can utilize the benefits therefrom:

	2018		2017
Property, plant and equipment	$	1,090	$	684
Share and debt issuance costs ⁽ⁱ⁾		9,488		2,834
Losses carried forward ⁽ⁱⁱ⁾		25,663		7,814
Equity accounted investments		923		-

⁽ⁱ⁾	Share and debt issuance costs will be fully amortized in 2023. The remaining deductible temporary differences may be carried forward indefinitely.

⁽ⁱⁱ⁾	For income tax purposes, the Company has non-capital losses carried forward from current and prior years which can be used to reduce future years' taxable income. These losses expire as follows:

Summary of non-capital losses carried forward from current and prior years

For income tax purposes, the Company has non-capital losses carried forward from current and prior years which can be used to reduce future years' taxable income. These losses expire as follows:

	Non-capital losses
2030	$	32
2031		22
2032		341
2033		2,547
2034		1,782
2035		5,452
2036		4,623
2037		4,502
2038		26,145
	$	45,446