10. INCOME TAX

12 Months Ended

Dec. 31, 2015

Income Tax Disclosure [Abstract]

10. INCOME TAX

10.           Income Tax

The provision for income tax expense (benefit) is compromised of the following:

	2015			2014
Current tax, federal	$	613,691		$	345,547
Current tax, state		151,637			76,497
Current tax, foreign		-			-
Current tax, total		765,328			422,044
Deferred income tax, federal		77,365			(64,746	)
Deferred income tax, state		19,116			(14,333	)
Deferred income tax, foreign		(58,324	)		(85,532	)
Deferred income tax, total		38,157			(164,611	)
Total	$	803,485		$	257,433

The following table reconciles the income tax benefit at the U.S. Federal statutory rate to income tax benefit at the Company's effective tax rates.

	2015			2014
Income (loss) before taxes		2,308,181			660,780
US statutory tax rates		39.12	%		38.62	%
Expected income tax (recovery)		902,845			255,193
Non-deductible items		39,872			(162,602	)
Change in estimates		12,336			(38,696	)
Change in enacted tax rate		(158,840	)		-
Option expired during the year		35,688			44,917
Functional currency adjustments		-			-
Foreign tax rate difference		(40,393	)		172,818
Change in valuation allowance		11,977			(14,197	)
Total income taxes (recovery)		803,485			257,433
Current income tax expenses (recovery)		765,328			422,044
Deferred tax expenses (recovery)		38,157			(164,611	)
Total income taxes (recovery)		803,485			257,433

Deferred taxes reflect the tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes. Deferred tax assets (liabilities) at December 31, 2015 and 2014 are comprised of the following:

Canada	2015		2014
Non capital loss carryforwards		1,068,935		1,407,088
Patents		36,070		35,480
Fixed assets		809,404		780,396
Financial instruments		-		(6,045	)
		1,914,409		2,216,919
Valuation Allowance		-		-
Net Deferred tax asset (liability)		1,914,409		2,216,919
USA
		2015		2014
Fixed Assets		353,907		429,631
Stock-Based Compensation		206,648		215,429
		560,556		645,060
Deferred tax asset not recognized		206,669		194,692
Net Deferred tax asset		353,886		450,368

The Company has non-operating loss carryforwards of approximately $3,959,018 (2014 - $5,628,353) which may be carried forward to apply against future year income tax for Canadian income tax purposes, subject to the final determination by taxation authorities, expiring in the following years:

Expiry	Loss
2027		322,794
2028		543,345
2029		748,420
2030		781,632
2031		900,002
2032		588,509
2033		74,316
2034		-
Total		3,959,018

As at December 31, 2015, the Company has no net operating losses carryforward available for US tax purposes.

Accounting for uncertainty for Income Tax

Effective January 1, 2009, the Company adopted the interpretation for accounting for uncertainty in income taxes which was an interpretation of the accounting standard accounting for income taxes. This interpretation created a single model to address accounting for uncertainty in tax positions. This interpretation clarifies the accounting for income taxes, by prescribing a minimum recognition threshold a tax position is required to meet before being recognized in the financial statements.

As at December 31, 2015 and 2014, the Company’s consolidated balance sheets did not reflect a liability for uncertain tax positions, nor any accrued penalties or interest associated with income tax uncertainties. The Company has no income tax examinations in progress.