The
Company has estimated net operating losses for the years ended December 31, 2017 and 2016 of $12.3 million and $11.0 million,
respectively, available to offset taxable income in future years.
The
significant components of deferred income taxes and assets as at December 31, 2017 are as follows:
Net
deferred tax liability |
|
2017
$
|
|
|
2016
$
|
|
Excess
of tax over book depreciation and amortization |
|
|
- |
|
|
|
- |
|
Prepaid
expenses |
|
|
- |
|
|
|
- |
|
Allowance
for doubtful accounts |
|
|
- |
|
|
|
- |
|
Accrued
expenses |
|
|
1,154 |
|
|
|
- |
|
Stock-based
compensation |
|
|
- |
|
|
|
- |
|
Net
Operating Losses carry-forward |
|
|
11,156,839 |
|
|
|
8,806,016 |
|
Research
and development tax credits |
|
|
- |
|
|
|
- |
|
Gross
deferred tax assets |
|
|
11,157,993 |
|
|
|
8,806,016 |
|
Valuation
allowance |
|
|
(11,157,993 |
) |
|
|
(8,806,016 |
) |
|
|
|
|
|
|
|
|
|
Net
deferred tax asset |
|
|
- |
|
|
|
- |
|
Summary
Rate Reconciliation |
|
|
2017
%
|
|
Federal
statutory rate |
|
|
35.0 |
|
State
income taxes, net of federal benefit |
|
|
0.0 |
|
Permanent
Differences |
|
|
0.1 |
|
Stock
based compensation |
|
|
(5.8 |
) |
Federal
Research & Development Credits |
|
|
0.0 |
|
Foreign
taxes |
|
|
(3.1 |
) |
Federal
Deferred Rate Decrease |
|
|
(10.3 |
) |
Increase/(decrease)
in valuation reserve |
|
|
(15.9 |
) |
Total
|
|
|
0.0 |
|
|