General form of registration statement for all companies including face-amount certificate companies

INCOME TAXES

v3.10.0.1
INCOME TAXES
12 Months Ended
Mar. 31, 2018
Income Tax Disclosure [Abstract]  
Income Tax Disclosure [Text Block]
13.
INCOME TAXES
 
Components of net (loss) before income taxes consists of the following:
 
   
March 31
   
March 31
 
   
2018
   
2017
 
    $     $  
U.S.     (12,281,398 )     (6,056,384 )
Canada     (2,344,392 )     (2,013,018 )
      (14,625,790 )     (8,069,402 )
Net (loss) for the year before recovery of income taxes     (14,625,790 )     (8,069,402 )
Statutory rate     34.04 %     35 %
Expected income tax (recovery) expense     (4,978,619 )     (2,824,291 )
Tax rate changes and other basis adjustments     1,748,278       44,238  
Stock-based compensation     524,412       350,683  
Difference in Foreign Tax Rates     184,414       -  
Accretion     659,458       -  
Share premium     425,497       -  
Non-deductible expense     339,296       (132,076 )
Net DTA acquired     -       (546,122 )
Change in valuation allowance     1,097,264       3,107,568  
Recovery of income taxes     -       -  
 
The following deferred tax assets have not been recognized. 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,
2018
   
March 31,
2017
 
   
$
   
$
 
Equipment     70,350       73,520  
Share issue costs     510       1,456  
SR&ED pool     690,320       464,746  
Other     535,510       629,266  
Non-capital losses – Canada     2,515,170       2,067,203  
Net operating losses – U.S.     4,331,850       4,534,710  
Valuation allowance     (7,017,430 )     (5,956,118 )
      1,126,280       1,814,783  
Intangibles and other     (1,126,280 )     (1,814,783 )
      -       -  
 
The Company has non-capital losses in its Canadian subsidiary of approximately $9,491,200, which will expire between 2029 and 2037. The Company has net operating losses in the U.S. parent Company of $6,319,925, and net operating losses in the U.S. subsidiary of approximately $11,788,800, which will expire between 2034 and 2037.
 
Income taxes are provided based on the liability method, which results in deferred tax assets and liabilities arising from temporary differences. Temporary differences are differences between the tax basis of assets and liabilities and their reported amounts in the consolidated financial statements that will result in taxable or deductible amounts in future years. The liability method requires the effect of tax rate changes on current and accumulated deferred taxes to be reflected in the period in which the rate change was enacted. The liability method also requires that deferred tax assets be reduced by a valuation allowance unless it is more likely than not that the assets will be realized.
 
 
The Company recognizes the financial statement benefit of a tax position only after determining that the relevant tax authority would more likely than not sustain the position following an audit. For tax positions meeting the more-likely-than-not threshold, the amount recognized in the consolidated financial statements is the largest benefit that has a greater than 50% likelihood of being realized upon ultimate settlement with the relevant tax authority. The Company recognizes interest accrued on uncertain tax positions as well as interest received from favorable tax settlements within interest expense. The Company recognizes penalties accrued on unrecognized tax benefits within general and administrative expenses. As of March 31, 2018, the Company had no uncertain tax positions.
 
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, 2018:
 
United States – Federal
2014 – present
United States – State
2014 – present
Canada – Federal
2013 – present
Canada – Provincial
2013 – present