Income Taxes

12 Months Ended

Dec. 31, 2019

Income Tax Disclosure [Abstract]

Income Taxes

15. Income Taxes

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

	2019			2018
Current tax, federal	$	391,476		$	221,758
Current tax, state		177,096			82,806
Current tax, foreign		51,285			112,449
Current tax, total		619,857			417,013
Deferred income tax, federal		(293,796	)		-
Deferred income tax, state		(132,908	)		-
Deferred income tax, foreign		(175,717	)		759,493
Deferred income tax, total		(602,421	)		759,493
Total	$	17,436		$	1,176,506

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.

	2019			2018
Income (loss) before tax, net of tax from gain on involuntary disposition		2,314,621			3,054,847
Tax from gain on involuntary disposition		-			693,063
Income (loss) before taxes		2,314,621			3,747,910
US statutory tax rates		30.50	%		28.51	%
Expected income tax (recovery)		705,960			1,068,342
Non-deductible items		(41,419	)		354,548
Change in estimates and other		27,893			183,529
Change in enacted tax rate		(263,686	)		-
Foreign tax rate difference		(400,593	)		(393,794	)
Change in valuation allowance		(10,719	)		(36,119	)
Total income taxes (recovery)		17,436			1,176,506
Current income tax expenses (recovery)		619,857			417,013
Deferred tax expenses (recovery)		(602,421	)		759,493
Total income taxes (recovery)		17,436			1,176,506

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, 2019 and 2018 are comprised of the following:

Canada	2019			2018
Non capital loss carryforwards		769,112			556,462
Patents		63,998			63,998
Fixed assets		(350	)		(350	)
Financial instruments		-			-
		832,760			620,110
Valuation Allowance		-			-
Net Deferred tax asset (liability)		832,760			620,110
USA
		2019			2018
Non capital loss carryforwards		152,299			-
Fixed Assets		264,952			247,665
Intangible assets		(1,058,641	)		(989,569	)
Stock-Based Compensation		185,866			173,739
		(455,524	)		(568,165	)
Deferred tax asset not recognized		164,284			153,565
Net Deferred tax asset		(291,240	)		(414,600	)

The Company has non-operating loss carryforwards of approximately $3,347,903 (2018 - $2,060,971) 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
2032		401,480
2037		1,659,491
2039		1,286,932
Total		3,347,903

As at December 31, 2019, the Company has no net operating losses carryforward available for US tax purposes.