Annual reports filed by certain Canadian issuers pursuant to Section 15(d) and Rule 15d-4

Income taxes

v3.19.1
Income taxes
12 Months Ended
Dec. 31, 2018
Income taxes [Abstract]  
Income taxes
Income taxes
As at December 31, 2018, the Company has available Canadian non-capital losses in the amount of $163,144,000 (2017 – $117,232,000) and scientific research and experimental development expenditures (SRED) in the amount of $3,732,000 (2017 – nil) to reduce Canadian taxable income in future years. The Company has unclaimed investment tax credits of $1,926,000 (2017 – $1,409,000) available to reduce future Canadian income taxes otherwise payable.
The SRED expenditures do not expire. The losses and credits will expire as follows:

Non-capital
losses carried forward
$

Federal investment
tax credits
$

2029
3,294

30

2030
2,341

50

2031
1,786

280

2032
7,425

184

2033
5,325

75

2034
13,032

131

2035
18,749

203

2036
21,140

206

2037
42,316

353

2038
47,736

414


As at December 31, 2018 and December 31, 2017, temporary differences for which no deferred tax asset was recognized were as follows:

2018
$

 
2017
$

Deferred tax assets (liabilities)

 

Loss carry-forwards
44,264

 
31,700

Share issue costs
2,433

 
3,364

Deferred revenue and contingent consideration
1,207

 
1,175

Property and equipment

 
2

Intangible assets
1,248

 
1,507

SRED
991

 

Other
231

 
159


50,374

 
37,907

Potential tax assets not recognized
(50,374
)
 
(37,907
)
Net deferred tax assets

 


Given the Company’s past losses, management does not believe that it is more probable than not that the Company can realize its deferred tax assets and therefore it has not recognized any amount in the consolidated statements of financial position.
The difference between the expected income tax recovery based on a 27.0% (2017 – 27.0%) Canadian statutory tax rate and the actual income tax expense recorded is summarized as follows:

2018
$

 
2017
$

Expected recovery at the statutory rate
(17,312
)
 
(19,135
)
Non-taxable revaluation of warrant liabilities
2,688

 
6,459

Non-deductible expenses including stock compensation
2,157

 
1,418

Unrecognized deductible temporary differences
12,467

 
11,258

Income taxes related to foreign subsidiaries
73

 

Total income tax expense
73