Annual and transition report of foreign private issuers pursuant to Section 13 or 15(d)

Income Taxes

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Income Taxes
12 Months Ended
Dec. 31, 2021
Disclosure of income tax [Abstract]  
Income Taxes Income Taxes
 
The provision for income taxes recorded in the consolidated financial statements differs from the amount which would be obtained by applying the statutory income tax rate to the loss before income taxes as follows:
For the years ended December 31, 2021 2020 2019
Loss before income taxes $ (26,254,852) $ (22,505,057) $ (33,122,888)
Statutory Canadian corporate tax rate 23.00% 24.00% 26.50%
Anticipated tax recovery (6,038,616) (5,401,214) (8,777,565)
Foreign jurisdiction tax rate difference 2,716,319 3,237,898 3,088,811
Share-based compensation 879,957 614,154 389,591
Change in fair value of warrant derivative (3,937) (838,063) 3,341,334
Impact of Alberta rate change 96,028 3,758,175
Adjustment to opening tax pools (552,079) 20,711 11,973
Other permanent differences 44,290 108,945 149,294
Expiry of tax benefits 1,661,187    
Change in deferred tax benefits deemed not probable to be recovered 1,342,306 2,161,541 (1,961,613)
Current income taxes $ 49,427 $ $
As at December 31, 2021, we have the following approximate non-refundable federal investment tax credits and non-capital losses for income tax purposes in Canada, as well as non-capital losses in Barbados that are expected to expire in the following years, if not utilized:
Canada Barbados
Investment tax credits Non-capital losses Non-capital losses
2022 465,000  —  42,826,000 
2023 361,000  —  33,063,000 
2024 228,000  —  15,990,000 
2025 271,000  —  15,138,000 
2026 520,000  9,809,000  16,575,000 
2027 596,000  12,170,000  26,114,000 
2028 622,000  —  13,280,000 
2029 173,000  4,009,000  — 
2030 91,000  4,774,000  — 
2031 114,000  4,343,000  — 
2032 381,000  2,873,000  — 
2033 487,000  2,457,000  — 
2034 270,000  2,472,000  — 
2035 183,000  3,125,000  — 
2036 41,000  6,430,000  — 
2037 980  4,812,000  — 
2038 22,000  5,056,000  — 
2039 8,000  6,864,000  — 
2040 —  9,724,000  — 
2041 —  10,619,000  — 
$ 4,833,980  $ 89,537,000  $ 162,986,000 

As well, we have unclaimed Canadian scientific research and experimental development expenditures available to reduce future years’ taxable income of approximately $27,663,000. We also have unclaimed U.S. credits for increasing research activities available to reduce future years' taxable income of approximately $1,343,000 expiring between 2031 and 2041. We have not recorded the potential benefits of these tax pools in these consolidated financial statements.
Deferred tax assets are recognized, to the extent that it is probable that taxable income will be available, against which the deductible temporary differences and the carry-forward of unused tax credits and unused tax losses can be utilized. The components of our unrecognized deferred tax asset are as follows:
For the years ended December 31, 2021 2020 2019
Net operating losses carried forward $ 25,157,950  $ 21,487,804  $ 19,625,642 
Scientific research and experimental development 7,705,028  6,362,152  6,338,542 
Investment tax credits 3,715,652  4,068,105  4,222,016 
Undepreciated capital costs in excess of book value of property and equipment and intellectual property
350,695  1,927,709  1,908,320 
Share issue costs 647,978  689,193  611,072 
Net capital losses carried forward 6,472  6,472  6,474 
Unrecognized deferred tax asset $ 37,583,775  $ 34,541,435  $ 32,712,066 
The Company currently files income tax returns in the various jurisdictions in which it operates. These tax returns are subject to periodic examinations in the normal course by the applicable tax authorities. Management is not aware of any other material income tax examination currently in progress by any taxing jurisdiction.