| INCOME TAXES [Text Block] |
| 10. |
INCOME TAXES
|
| |
|
| |
The Company has non-capital losses of approximately $16.6
million in the United States and $3.5
million (CDN$4.5
million) in Canada available, which may be applied against future taxable income and which expire as follows:
|
| |
|
|
USA
|
|
|
Canada
|
|
|
Total
|
|
| |
2025 |
$ |
188,000
|
|
$ |
|
|
$ |
188,000
|
|
| |
2026 |
|
610,000
|
|
|
|
|
|
610,000
|
|
| |
2027 |
|
1,731,000
|
|
|
|
|
|
1,731,000
|
|
| |
2028 |
|
3,175,000
|
|
|
|
|
|
3,175,000
|
|
| |
2029 |
|
2,793,000
|
|
|
|
|
|
2,793,000
|
|
| |
2030 |
|
2,045,000
|
|
|
|
|
|
2,045,000
|
|
| |
2031 |
|
-
|
|
|
|
|
|
-
|
|
| |
2032 |
|
1,999,000
|
|
|
|
|
|
1,999,000
|
|
| |
2033 |
|
36,000
|
|
|
|
|
|
36,000
|
|
| |
2034 |
|
948,000
|
|
|
849,000
|
|
|
1,797,000
|
|
| |
2035 |
|
561,000
|
|
|
1,099,000
|
|
|
1,660,000
|
|
| |
2036 |
|
699,000
|
|
|
993,000
|
|
|
1,692,000
|
|
| |
2037 |
|
1,803,000
|
|
|
555,000
|
|
|
2,358,000
|
|
| |
|
$ |
16,588,000
|
|
$ |
3,496,000
|
|
$ |
20,084,000
|
|
The reconciliation of income taxes at statutory income tax rates (U.S –
35% and Canada –
26.5% on their respective losses) to the income tax expense is as follows:
| |
|
|
November |
|
|
November |
|
| |
|
|
30, 2017 |
|
|
30, 2016 |
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| |
|
|
|
|
|
|
|
| |
Loss before income taxes |
$ |
(2,800,251
|
) |
$ |
(1,924,110
|
) |
| |
Income tax recovery at statutory rate |
|
(932,000
|
) |
|
(592,000
|
) |
| |
Permanent differences |
|
(74,000
|
) |
|
50,000
|
|
| |
Tax benefit not recognized |
|
1,006,000
|
|
|
542,000
|
|
| |
Income taxes – current and deferred |
$ |
-
|
|
$ |
-
|
|
Deferred tax asset components as of November 30, 2017 and 2016 are as follows:
| |
|
|
2017 |
|
|
2016 |
|
| |
Non-capital losses available to offset future income-taxes |
$ |
20,084,000
|
|
$ |
19,265,000
|
|
| |
|
|
|
|
|
|
|
| |
Expected income tax recovery at statutory rates |
$ |
(4,410,000
|
) |
$ |
(6,473,000
|
) |
| |
Valuation allowance |
$ |
4,410,000
|
|
$ |
6,473,000
|
|
| |
Net deferred tax assets |
|
-
|
|
|
-
|
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As the Company has recognized substantial cumulative losses from operations and has not earned significant revenues, it has provided a
100% valuation allowance on the net deferred tax assets as of November 30, 2017 and 2016. Management believes the Company has no uncertain tax positions that were material.
|