10.	Income Taxes

The Company and its subsidiary operate in several tax jurisdictions, and its income is subject to various rates of taxation. The Company has net losses for tax purposes in the United States and Brazil totaling approximately $14,158,885 and $9,064,099 respectively, which may be applied against future taxable income. Accordingly, there is no tax expense for the years ended December 31, 2013 and 2012. The potential tax benefits arising from these losses have not been recorded in the consolidated financial statements as a full valuation allowance has been recorded against them. The Company evaluates its valuation allowance requirements on an annual basis based on projected future operations. When circumstances change and this causes a change in management's judgment about the recoverability of deferred tax assets, the impact of the change on the valuation allowance is reflected in current operations. The right to claim the tax losses in the United States expire according to the following table:

Fiscal Year of Expiry			Amount $
2018			331,000
2019			795,000
2020			550,000
2022			138,000
2023			90,000
2024			222,000
2025			457,000
2026			1,094,000
2027			800,000
2028			561,000
2029			479,000
2030			2,065,000
2031			3,921,183
2032			753,861
2033			1,901,841
			14,158,885

Tax losses carried forward in Brazil have no expiration date and are available to offset up to 30% of annual income before tax in any year.

The tax effects of temporary differences that give rise to the Company's net deferred tax assets are as follows:

	2013 $	2012 $
Tax loss carry forwards	7,895,814	6,737,948
Valuation allowance	(8,048,548)	(6,890,682)
Stock compensation expense	152,734	152,734
	—	—

The reconciliation of income tax computed at the federal statutory rate to income tax expense is as follows:

	2013		2012
	$		$
Tax at statutory rate		(1,157,866)		(408,127)
Movement in deferred tax asset		—		191,760
Change in valuation allowance for deferred tax asset		1,157,866		135,779
Other		—		80,588
Income tax expense	$	—	$	—