| INCOME TAXES |
The
Company's deferred tax assets (liabilities), resulting from temporary differences that will change taxable incomes of future
years, are:
| |
|
2019 |
|
|
2018 |
|
| Property, plant and equipment and intangible assets |
|
$ |
(18,458,345 |
) |
|
$ |
(1,571,771 |
) |
| Non-capital tax loss carry-forwards |
|
|
12,508,132 |
|
|
|
11,601,966 |
|
| Other tax-related balances and credits |
|
|
162,286 |
|
|
|
349,408 |
|
| Valuation allowance |
|
|
5,787,927 |
|
|
|
(10,379,603 |
) |
| Net deferred tax assets (liabilities) |
|
$ |
- |
|
|
$ |
- |
|
A
reconciliation of the provision for income taxes is:
| |
|
2019 |
|
|
2018 |
|
| Net loss before income taxes |
|
$ |
15,787,886 |
|
|
$ |
15,480,603 |
|
| Combined federal and state statutory income tax rates |
|
|
26.5 |
% |
|
|
26.5 |
% |
| Tax recovery using the Company's domestic tax rate |
|
|
4,183,790 |
|
|
|
4,102,360 |
|
| Effect of tax rates in foreign jurisdictions |
|
|
(1,043,076 |
) |
|
|
86,029 |
|
| Net effect of (non-deductible) deductible items |
|
|
(589,711 |
) |
|
|
(1,679,346 |
) |
| Current year deductible amounts |
|
|
35,489 |
|
|
|
763,571 |
|
| Current period losses not recognized |
|
|
(2,586,492 |
) |
|
|
(3,272,614 |
) |
| Provision for income taxes |
|
$ |
- |
|
|
$ |
- |
|
As
at August 31, 2019, the Company has, on a consolidated basis, non-capital losses of approximately $79 million for income tax purposes
which may be used to reduce taxable incomes of future years. If unused, these losses will expire between 2029 and 2039.
|