| INCOME TAXES |
|
a) |
Provision
for Income Taxes |
A
reconciliation of income taxes at statutory rates with the reported taxes is as follows:
| |
|
2020 |
|
|
2019 |
|
|
2018 |
|
| |
|
($) |
|
|
($) |
|
|
($) |
|
| Loss
for the year |
|
|
(9,271,160 |
) |
|
|
(9,627,605 |
) |
|
|
(9,373,171 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
| Expected income tax (recovery) |
|
|
(2,503,000 |
) |
|
|
(2,599,000 |
) |
|
|
(2,531,000 |
) |
| Change in statutory, foreign
tax, foreign exchange rates and other |
|
|
369,000 |
|
|
|
528,000 |
|
|
|
(96,000 |
) |
| Permanent differences |
|
|
541,000 |
|
|
|
345,000 |
|
|
|
180,000 |
|
| Share issue costs |
|
|
- |
|
|
|
(154,000 |
) |
|
|
(121,000 |
) |
| Adjustment to prior years
provision versus statutory tax returns |
|
|
(47,000 |
) |
|
|
4,157,000 |
|
|
|
(1,026,000 |
) |
| Change
in unrecognized deductible temporary differences |
|
|
1,640,000 |
|
|
|
(2,277,000 |
) |
|
|
3,594,000 |
|
| Income
tax expense |
|
|
- |
|
|
|
- |
|
|
|
- |
|
The
significant components of the Company’s deferred tax assets that have not been included on the consolidated statement of financial
position are as follows:
| |
|
2020 |
|
|
2019 |
|
|
2018 |
|
| |
|
($) |
|
|
($) |
|
|
($) |
|
| Non-capital losses
carry-forward |
|
|
10,519,000 |
|
|
|
9,054,000 |
|
|
|
17,116,000 |
|
| Exploration and evaluation
assets |
|
|
1,910,000 |
|
|
|
1,919,000 |
|
|
|
1,929,000 |
|
| Share issuance costs |
|
|
141,000 |
|
|
|
200,000 |
|
|
|
109,000 |
|
| Debt with accretion |
|
|
(91,000 |
) |
|
|
(127,000 |
) |
|
|
(139,000 |
) |
| Intangible assets |
|
|
1,736,000 |
|
|
|
1,605,000 |
|
|
|
623,000 |
|
| Allowable capital losses |
|
|
4,819,000 |
|
|
|
4,749,000 |
|
|
|
82,000 |
|
| Property
and equipment |
|
|
83,000 |
|
|
|
77,000 |
|
|
|
34,000 |
|
| |
|
|
19,117,000 |
|
|
|
17,477,000 |
|
|
|
19,754,000 |
|
| Unrecognized
deferred tax assets |
|
|
(19,117,000 |
) |
|
|
(17,477,000 |
) |
|
|
(19,754,000 |
) |
The
significant components of the Company’s temporary differences, unused tax credits and unused tax losses that have not been included
on the consolidated statement of financial position are as follows:
| Temporary
Differences |
|
2020 |
|
|
Expiry
Date Range |
|
2019 |
|
|
Expiry
Date Range |
| |
|
($) |
|
|
|
|
($) |
|
|
|
| Non-capital
losses available for future periods - US |
|
|
19,962,000 |
|
|
2036
to indefinite |
|
|
15,498,000 |
|
|
2036
to indefinite |
| Non-capital
losses available for future periods - Canada |
|
|
23,094,000 |
|
|
2026
to 2040 |
|
|
21,005,000 |
|
|
2026
to 2039 |
| Allowable
capital losses |
|
|
17,847,000 |
|
|
No
expiry date |
|
|
17,588,000 |
|
|
No
expiry date |
| Property
and equipment |
|
|
354,000 |
|
|
No
expiry date |
|
|
327,000 |
|
|
No
expiry date |
| Intangible
asset |
|
|
8,267,000 |
|
|
No
expiry date |
|
|
7,642,000 |
|
|
No
expiry date |
| Exploration
and evaluation assets |
|
|
7,075,000 |
|
|
No
expiry date |
|
|
7,108,000 |
|
|
No
expiry date |
| Share
issuance costs |
|
|
521,000 |
|
|
2040
to 2044 |
|
|
740,000 |
|
|
2040
to 2043 |
Tax
attributes are subject to review, and potential adjustment, by tax authorities.
|