Annual and transition report of foreign private issuers pursuant to Section 13 or 15(d)

Income tax recovery and deferred tax assets and liabilities

v3.19.1
Income tax recovery and deferred tax assets and liabilities
12 Months Ended
Dec. 31, 2018
Income tax recovery and deferred tax assets and liabilities [Abstract]  
Income tax recovery and deferred tax assets and liabilities
10. Income tax recovery and deferred tax assets and liabilities

 

A reconciliation of the expected income tax recovery to the actual income tax recovery is as follows:

 

   

December 31,

2018

   

December 31,

2017

   

December 31,

2016

 
Loss before tax   $ (10,039,812 )   $ (11,366,372 )   $ (8,973,347 )
Statutory tax rate     27 %     26 %     26 %
Expected income tax recovery at the statutory tax rate     (2,710,749 )     (2,955,257 )     (2,333,070 )
Stock-based compensation     871,697       231,273       1,228,726  
Changes in fair value of warrant derivative     (2,080,904 )     48,430       -  
Share issue costs and other     (969,673 )     256,445       (231,643 )
Effect of change in tax rate     -       (149,561 )     -  
SR&ED expenditures     -       183,351       -  
Temporary differences not recognized     4,887,962       2,385,319       1,335,987  
Income tax recovery   $ (1,667 )   $ -     $ -  

  

The Company has the following deductible (taxable) temporary differences:

 

   

December 31,

2018

   

December 31,

2017

   

December 31,

2016

 
Non-capital loss carry-forwards   $ 25,284,214     $ 11,436,565     $ 5,019,398  
Property, plant and equipment     330,963       141,271       23,197  
Share issue costs     4,969,038       1,983,154       737,637  
SR&ED expenditures     2,331,495       1,397,672       -  
Other     (411,487 )     (558,000 )     -  
      32,504,223       14,400,662       5,780,232  
Deferred tax assets not recognized     (33,059,017 )     (14,955,454 )     (5,780,232 )
Deferred tax liability     (554,794 )     (554,794 )     -  
                      -  
Deferred tax liability (tax effected at 27%)   $ (149,794 )   $ (149,794 )   $ -