Transition report pursuant to Rule 13a-10 or 15d-10

INCOME TAXES (Tables)

v3.5.0.1
INCOME TAXES (Tables)
3 Months Ended
Mar. 31, 2016
Income Tax Disclosure [Abstract]  
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block]
Components of net (loss) income before income taxes consists of the following:
 
 
 
3 months
ended
March 31,
2016
 
Year
ended
March 31,
2016
 
Year ended
December
31, 2015
 
Nine
months
ended
December
31, 2014
 
 
 
 
$
 
 
$
 
 
$
 
 
$
 
U.S.
 
 
183,461
 
 
4,706,413
 
 
(2,372,510)
 
 
-
 
Canada
 
 
(1,187,553)
 
 
(3,670,265)
 
 
(3,221,396)
 
 
(2,464,747)
 
 
 
 
(1,004,092)
 
 
1,036,148
 
 
(5,593,906)
 
 
(2,464,747)
 
 
Reconciliation of the statutory tax rate of 35% (2014 - 26.5%) and income tax benefits at those rates to the effective income tax rates and income tax benefits reported in the statement of operations and comprehensive loss is as follows:
 
 
 
3 months
ended
March 31,
2016
 
 
Year ended
March 31,
2016
 
 
Year ended
December
31, 2015
 
 
Nine
months
ended
December
31, 2014
 
 
 
 
$
 
 
 
$
 
 
 
$
 
 
 
$
 
Net (loss) income for the period before recovery of income taxes
 
 
(1,004,092)
 
 
 
1,036,148
 
 
 
(5,593,906)
 
 
 
(2,464,747)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Statutory rate
 
 
35
%
 
 
35
%
 
 
35
%
 
 
26.5
%
Expected income tax (recovery) expense
 
 
(351,432)
 
 
 
362,652
 
 
 
(1,957,867)
 
 
 
(653,158)
 
Tax rate changes and other basis adjustments
 
 
(162,267)
 
 
 
195,108
 
 
 
364,651
 
 
 
(29,109)
 
Change in fair value of derivative liability
 
 
(304,835)
 
 
 
(2,709,894)
 
 
 
(169,443)
 
 
 
 
 
Stock-based compensation
 
 
55,350
 
 
 
512,693
 
 
 
587,381
 
 
 
-
 
Non-deductible expenses
 
 
(99,642)
 
 
 
(12,073)
 
 
 
227,068
 
 
 
193,305
 
Change in valuation allowance
 
 
862,826
 
 
 
1,651,514
 
 
 
948,210
 
 
 
488,962
 
Recovery of income taxes
 
 
-
 
 
 
-
 
 
 
-
 
 
 
-
 
Schedule of Deferred Tax Assets and Liabilities [Table Text Block]
Deferred tax reflects the tax effects of temporary differences that gave rise to significant portions of deferred tax assets and liabilities and consisted of the following:
 
 
 
March 31,
2016
 
March 31,
2015
 
December 31,
2015
 
December 31,
2014
 
 
 
$
 
$
 
$
 
$
 
Property and equipment
 
 
52,331
 
 
34,556
 
 
47,495
 
 
36,940
 
Share issue costs
 
 
3,586
 
 
5,838
 
 
3,877
 
 
162,350
 
SR&ED pool
 
 
400,557
 
 
103,799
 
 
340,585
 
 
7,137
 
Other
 
 
215,202
 
 
32,447
 
 
39,947
 
 
18,621
 
Non-capital losses – Canada
 
 
1,587,439
 
 
977,178
 
 
1,149,389
 
 
812,522
 
Net operating losses - U.S.
 
 
589,491
 
 
43,274
 
 
404,487
 
 
-
 
Valuation allowance
 
 
(2,848,606)
 
 
(1,197,092)
 
 
(1,985,780)
 
 
(1,037,570)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
-
 
 
-
 
 
-
 
 
-
 
Summary of Income Tax Examinations [Table Text Block]
In many cases the Company’s uncertain tax positions are related to tax years that remain subject to examination by tax authorities. The following describes the open tax years, by major tax jurisdiction, as of March 31, 2016: 
 
United States - Federal
 
2013 – present
United States – State
 
2013 – present
Canada – Federal
 
2012 - present
Canada – Provincial
 
2012 - present