| Provision for 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:
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| 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 |
|
$ |
— |
|
$ |
— |
|
| Schedule of unrecognized non-capital losses, non-refundable credits and deferred tax assets |
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:
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|
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 |
|
|
— |
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| 2034 |
270,000 |
|
|
2,472,000 |
|
|
— |
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| 2035 |
183,000 |
|
|
3,125,000 |
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|
— |
|
| 2036 |
41,000 |
|
|
6,430,000 |
|
|
— |
|
| 2037 |
980 |
|
|
4,812,000 |
|
|
— |
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| 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
|
|
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:
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| 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 |
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