Annual report pursuant to Section 13 and 15(d)

Note 18 - Income Taxes

v3.20.2
Note 18 - Income Taxes
12 Months Ended
Mar. 31, 2020
Notes to Financial Statements  
Income Tax Disclosure [Text Block]
18.
Income taxes:
 
Reconciliation of effective tax rate:
 
    March 31,
2020
    March 31,
2019
 
    $     $  
Loss before income taxes    
(25,513
)    
(39,366
)
Basic combined Canadian statutory income tax rate
1
   
26.58
%    
26.68
%
Computed income tax recovery    
(6,781
)    
(10,503
)
Increase resulting from:                
Non-deductible stock-based compensation    
519
     
207
 
Non-deductible change in fair value of warrants    
205
     
1,266
 
Change in valuation allowance    
6,004
     
8,839
 
Other – Foreign exchange    
20
     
36
 
Other    
33
     
155
 
Total tax (recovery) expense    
0
     
0
 
 
1
The Canadian combined statutory income tax rate has decreased due to a reduction in the provincial statutory income tax rate.
 
At
March 31, 2020
and
2019,
the net deferred tax assets have
not
been recognized in these financial statements. A valuation allowance is recognized to reduce the deferred tax assets as it is more likely than
not
that a tax benefit will
not
be realized.
 
Net deferred income tax assets as of
March 31, 2020
and
2019
were comprised of the following:
 
   
March 31, 2020
   
March 31, 2019
 
    $     $  
Deferred tax assets                
Tax losses carried forward    
22,052
     
17,750
 
Research and development expenses    
4,544
     
4,017
 
Property, plan and equipment    
324
     
254
 
Intangible assets    
1
     
(178
)
Financing expenses    
998
     
1,387
 
Tax credit carry forwards    
2,468
     
2,459
 
Other temporary differences    
76
     
283
 
Deferred tax assets    
30,463
     
25,972
 
                 
Deferred tax liabilities                
Tax basis of unsecured convertible debentures in excess of carrying value
   
-
     
(10
)
Deferred tax liabilities    
-
     
(10
)
Valuation allowance    
(30,463
)    
(25,962
)
Net deferred tax assets    
-
     
-
 
 
 
As at
March 31, 2020,
the amounts and expiry dates of tax attributes and temporary differences, which are available to reduce future years’ taxable income, were as follows:
 
    March 31, 2020  
    Federal     Provincial  
     
$
     
$
 
Tax losses carried forward                
2028    
508
     
508
 
2029    
1,157
     
1,152
 
2030    
1,473
     
1,467
 
2031    
1,609
     
1,594
 
2032    
1,318
     
1,298
 
2033    
2,559
     
2,559
 
2034    
3,268
     
3,171
 
2035    
3,907
     
3,907
 
2036    
5,749
     
5,661
 
2037    
356
     
352
 
2038    
12,331
     
12,281
 
2039    
28,811
     
28,773
 
2040    
20,311
     
20,311
 
     
83,357
     
83,034
 
                 
Research and development expenses, without time limitation    
16,698
     
17,732
 
                 
Tax credit carry forwards    
2,468
     
-
 
                 
Other deductible temporary differences, without time limitation    
5,282
     
5,282
 
 
Unrecognized tax benefits
 
The following table summarizes the activity related to our gross unrecognized tax benefits for the years ended
March 31, 2020
and
2019:
 
      March 31,
2020
      March 31,
2019
 
      $       $  
                 
Beginning of year:                
Increase (decrease) resulting from:                
Positions taken in the current year    
164
     
-
 
Change in valuation allowance    
(164
)    
-
 
End of year    
-
     
-
 
 
The Corporation does
not
expect a significant change to the amount of unrecognized tax benefits over the next
12
months. However, any adjustments arising from certain ongoing examinations by tax authorities could alter the timing or amount of taxable income or deductions, of the allocation of income among tax jurisdictions, and these adjustments could differ from the amount accrued.
 
The Corporation’s federal and provincial income tax returns filed for all years remain subject to examination by the taxation authorities.