Annual report pursuant to Section 13 and 15(d)

Income Tax (Tables)

v3.6.0.2
Income Tax (Tables)
12 Months Ended
Dec. 31, 2016
Income Tax Disclosure [Abstract]  
Reconciliation of Income Tax Attributable to Operations

 

(In thousands)

 

2016

 

 

2015

 

 

2014

 

Income taxes at statutory rates (at a rate of 34% for all

   periods presented)

 

$

(6,844

)

 

$

(5,712

)

 

$

(8,922

)

Expenses not deducted for tax purposes

 

 

(67

)

 

 

(14

)

 

 

(452

)

Effect of tax rate changes on deferred tax assets and liabilities

 

 

(3

)

 

 

(13

)

 

 

(9

)

Rate differential on foreign earnings

 

 

972

 

 

 

689

 

 

 

1,445

 

Reduction (increase) in benefit of operating losses

 

 

196

 

 

 

(32

)

 

 

441

 

Reduction in the benefit of other tax attributes

 

 

 

 

 

 

 

 

 

Investment tax credits

 

 

(252

)

 

 

(297

)

 

 

(357

)

Change in valuation allowance

 

 

6,203

 

 

 

5,114

 

 

 

7,854

 

Book to tax return adjustments

 

 

(205

)

 

 

265

 

 

 

 

Other

 

 

 

 

 

 

 

 

 

 

Income tax expense

 

$

 

 

$

 

 

$

 

 

Summary of Investment Tax Credits and Non-Capital Losses and Net Operating Losses

The investment tax credits and non-capital losses and net operating losses for income tax purposes expire as follows (in thousands):

 

 

 

 

Investment

 

 

Net Operating

 

 

Non-capital

 

 

 

Tax Credits

 

 

Losses

 

 

Losses

 

2016

 

 

 

 

 

 

 

 

 

2017

 

 

 

 

 

 

 

 

 

2018

 

 

150

 

 

 

10,795

 

 

 

 

2019

 

 

102

 

 

 

32

 

 

 

 

2020

 

 

76

 

 

 

2,745

 

 

 

 

2021

 

 

69

 

 

 

400

 

 

 

 

2022

 

 

105

 

 

 

11,766

 

 

 

 

2023

 

 

96

 

 

 

10,785

 

 

 

 

2024

 

 

111

 

 

 

16,814

 

 

 

 

2025

 

 

144

 

 

 

2,062

 

 

 

 

2026

 

 

400

 

 

 

27,157

 

 

 

7,335

 

2027

 

 

173

 

 

 

22,225

 

 

 

4,949

 

2028

 

 

390

 

 

 

12,648

 

 

 

8,020

 

2029

 

 

317

 

 

 

4,358

 

 

 

(9

)

2030

 

 

346

 

 

 

5,034

 

 

 

6,288

 

2031

 

 

608

 

 

 

6,200

 

 

 

12,121

 

2032

 

 

505

 

 

 

8,418

 

 

 

17,278

 

2033

 

 

411

 

 

 

2,366

 

 

 

23,240

 

2034

 

 

492

 

 

 

2,609

 

 

 

17,077

 

2035

 

 

328

 

 

 

5,342

 

 

 

3,120

 

2036

 

 

286

 

 

 

6,635

 

 

 

16,531

 

 

 

$

5,109

 

 

$

158,391

 

 

$

115,950

 

 

Significant Components of Company's Deferred Tax Assets and Deferred Tax Liabilities

Significant components of our deferred tax assets as of December 31 are shown below (in thousands):

 

 

2016

 

 

2015

 

Deferred tax assets:

 

 

 

 

 

 

 

 

Tax basis in excess of book value of assets

 

$

6,483

 

 

$

6,308

 

Non-capital loss carryforwards

 

 

84,358

 

 

 

77,746

 

Research and development deductions and credits

 

 

7,969

 

 

 

7,484

 

Stock options

 

 

3,743

 

 

 

3,448

 

Restructuring liability

 

 

624

 

 

 

474

 

Other

 

 

112

 

 

 

1,627

 

Total deferred tax assets

 

 

103,289

 

 

 

97,087

 

Valuation allowance

 

$

(103,289

)

 

$

(97,087

)

 

 

 

 

 

 

 

 

 

Net deferred tax assets

 

 

-

 

 

 

-

 

 

Reconciliation of Unrecognized Tax Benefits of Uncertain Tax Positions

A reconciliation of the unrecognized tax benefits of uncertain tax positions for the year ended December 31, 2016 is as follows (in thousands):

 

 

 

Year ended

 

 

 

December 31,

 

 

 

2016

 

 

2015

 

 

2014

 

Balance at January 1

 

$

2,055

 

 

$

2,039

 

 

$

2,007

 

Additions based on tax positions related to the current year

 

 

16

 

 

 

16

 

 

 

32

 

Additions based on tax positions related to prior years

 

 

 

 

 

 

 

 

 

Balance at December 31

 

$

2,071

 

 

$

2,055

 

 

$

2,039

 

 

Summary of Years Open to Examination Under Different Jurisdiction

Tax audits by their very nature are often complex and can require several years to complete.

 

Tax

 

Years open to

Jurisdiction

 

examination

Canada

 

2008 to 2016

US

 

2013 to 2016