Sales tax, research and development tax credits and other receivables as at August 31, 2019 and February 28, 2019 were as follows:

The Company is registered for the Canadian federal and provincial goods and services taxes. As such, the Company is obligated to collect, and is entitled to claim sale taxes paid on its expenses and capital expenditures incurred in Canada.

In addition, Loop Canada Inc. is entitled to receive government assistance in the form of refundable and non-refundable research and development tax credits from the federal and provincial taxation authorities, based on qualifying expenditures incurred during the fiscal year. The refundable credits are from the provincial taxation authorities and are not dependent on its ongoing tax status or tax position and accordingly are not considered part of income taxes. The Company records refundable tax credits as a reduction of research and development expenses when the Company can reasonably estimate the amounts and it is more likely than not, they will be received. During the three and six months ended August 31, 2019, the Company recorded $52,258 and $107,983, respectively, (2018 – $76,503 and $76,503, respectively) as a reduction of research and development expenses. During the three- and six-month periods ended August 31, 2019, research and development tax credits received by the Company from taxation authorities amounted to $175,929 and $175,929, respectively (2018 – nil and nil, respectively).