Income taxes

12 Months Ended

Dec. 31, 2013

Income Tax Disclosure [Abstract]

Income Tax Disclosure [Text Block]

17. Income taxes:

The reconciliation of income tax computed at statutory tax rates to income tax expense (recovery), using a 25.8% (2012 – 25.0%) statutory tax rate, is:

	December 31,		December 31,
	2013		2012
Tax recovery at Canadian statutory income tax rates	$	1,229	$	(4,579)
Change in valuation allowance		405		4,001
Permanent and other differences		(185)		562
Tax rate differences		(1,347)		16
Income tax expense	$	102	$	-

The components of earnings (loss) before income taxes consist of the following:

	2013		2012
Canadian	$	12,245	$	(18,315)
Foreign		(7,370)		-
Income (loss) before income taxes	$	4,875	$	(18,315)

Significant components of the Company’s deferred tax assets and liabilities are shown below:

	December 31,		December 31,
	2013		2012
Deferred tax assets:
Tax loss carryforwards	$	70,054	$	60,784
Research and development deductions and credits		14,748		14,198
Tax values of depreciable assets in excess of accounting values		2,485		2,871
Share issue costs and other		517		38
Total deferred tax assets		87,804		77,891
Valuation allowance		(87,804)		(77,891)
Total deferred tax assets		-		-
Deferred tax liabilities		-		-
Net tax asset	$	-	$	-

At December 31, 2013, the Company has investment tax credits of $18,454 (2012 - $18,399 ) available to reduce deferred income taxes otherwise payable. The Company also has total loss carryforwards of $292,754 (2012 - $253,493) available to offset future taxable income in Canada ($159,656), Switzerland ($85,842), the United States ($45,316), United Kingdom ($1,061), and Germany ($879).

The investment tax credits and non-capital losses for income tax purposes expire as follows:

	Investment		Non-capital
	tax credits		losses
2015	$	352	$	12,652
2016		1,064		8,475
2017		975		3,861
2018		158		39,375
2019		501		7,392
Thereafter		15,404		220,999
	$	18,454	$	292,754

The amount of liability for unrecognized tax benefits under U.S. GAAP as of December 31, 2013 is $nil (2012 - $nil).

The Company recognizes interest and penalties related to income taxes in interest and other income. To date, the Company has not incurred any significant interest and penalties. The Company is subject to assessments by various taxation authorities which may interpret tax legislations and tax filing positions differently from the Company. The Company provides for such differences when it is likely that a taxation authority will not sustain the Company’s filing position and the amount of the tax exposure can be reasonably estimated. As at December 31, 2013, a provision of $nil (2012 - $nil) has been made in the financial statements for estimated tax liabilities. Tax years ranging from 2004 to 2012 remain subject to examination in the various countries we operate in.