Document and Entity Information
Document and Entity Information | 3 Months Ended |
Mar. 31, 2020 | |
Document And Entity Information | |
Entity Registrant Name | NYMOX PHARMACEUTICAL CORPORATION |
Entity Central Index Key | 0001018735 |
Document Type | 6-K |
Document Period End Date | Mar. 31, 2020 |
Amendment Flag | false |
Current Fiscal Year End Date | --12-31 |
Document Fiscal Period Focus | Q1 |
Document Fiscal Year Focus | 2020 |
Consolidated Statements of Oper
Consolidated Statements of Operations (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Revenues | ||
Sales of goods | $ 5 | $ 30 |
Total revenues | 5 | 30 |
Operating expenses | ||
Research and development | 1,555 | 1,729 |
General and administrative and Marketing | 1,077 | 1,185 |
Cost of sales | 4 | 29 |
Total expenses | 2,636 | 2,943 |
Loss from operations | (2,631) | (2,913) |
Other expense | ||
Interest income(cost) | 25 | 53 |
Operating lease and financial expense | (9) | (10) |
Loss before income tax | (2,615) | (2,870) |
Income tax provision(recovery) | ||
Net Loss | $ (2,615) | $ (2,870) |
Net loss per share Basic & Diluted | $ (0.04) | $ (0.04) |
Weighted average number of common shares outstanding Basic & Diluted | 71,598 | 67,046 |
Consolidated Statements of Fina
Consolidated Statements of Financial Position - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Current assets | ||
Cash | $ 3,002 | $ 5,239 |
Accounts receivable | 1 | 4 |
Other receivables | 12 | 14 |
Inventory | 22 | 23 |
Security deposit | 28 | 28 |
Prepaid expenses | 69 | 20 |
Total current assets | 3,134 | 5,328 |
Non-current assets | ||
Property and equipment | 23 | 25 |
Operating lease right-of-use asset, net | 214 | 136 |
Security deposit | ||
Total assets | 3,371 | 5,489 |
Current liabilities | ||
Accounts payable and accrued liabilities | 1,705 | 1,894 |
Operation lease liability due within one year | 101 | 144 |
Total current liability | 1,806 | 2,038 |
Long term operating lease liability | 124 | 3 |
Total liabilities | 1,930 | 2,041 |
Stockholders’ Equity | ||
Share capital - unlimited authorized shares at no par value 71,718 and 71,218 shares outstanding at March 31, 2020 and December 31, 2019, respectively | 138,934 | 136,554 |
Share capital subscription receivable | (589) | (589) |
Additional paid-in capital | 33,998 | 35,770 |
Accumulated deficit | (170,902) | (168,287) |
Total Stockholders' equity | 1,441 | 3,448 |
Total liabilities and stockholders' equity | $ 3,371 | $ 5,489 |
Consolidated Statements of Fi_2
Consolidated Statements of Financial Position (Parenthetical) - shares shares in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Statement of financial position [abstract] | ||
Share capital, shares outstanding | 71,718 | 71,218 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Cash flows used in operating activities | ||
Net loss | $ (2,615) | $ (2,870) |
Adjustments for: | ||
Stock-based compensation | 429 | 690 |
Stock option expense | 179 | |
Depreciation equipment | 2 | 2 |
Amortization and others | 67 | 345 |
Accounts receivable and other receivables | 6 | (11) |
Prepaid expenses | (49) | (55) |
Inventories | 1 | 3 |
Accounts payable and accrued liabilities | (189) | 290 |
Security deposit | 13 | |
Net cash used in operating activities | (2,169) | (1,593) |
Cash flows from (used in) financing activities | ||
Proceeds from issuance of share capital | 5,000 | |
Repayment of operation lease and financing obligation | (68) | (60) |
Net cash provided by financing activities | (68) | 4,940 |
Net increase (decrease) in cash | (2,237) | 3,347 |
Cash, beginning of the period | 5,239 | 7,946 |
Cash, end of the period | 3,002 | 11,293 |
Supplemental Disclosure | ||
Income taxes paid | ||
Interest paid | ||
Non-cash investing and financing activities | ||
Operating lease right-of-use asset | $ 144 | $ 329 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Equity (Unaudited) - USD ($) shares in Thousands, $ in Thousands | Common Stock | Share capitalSubscriptions | Additional Paid-In Capital | Accumulated Deficit | Total |
Begning balance, shares at Dec. 31, 2018 | 64,676 | ||||
Begning balance, amount at Dec. 31, 2018 | $ 126,684 | $ (868) | $ 36,299 | $ (155,113) | $ 7,002 |
Statement Line Items [Line Items] | |||||
Lease adoption prior year cumulative effect | (12) | (12) | |||
Shares issuance for cash and share subscriptions, shares | 2,500 | ||||
Shares issuance for cash and share subscriptions, amount | $ 4,800 | 279 | 5,079 | ||
Warrant issued | 200 | 200 | |||
Stock-based compensation, shares | 750 | ||||
Stock-based compensation, amount | $ 2,720 | (2,030) | 690 | ||
Net loss | (2,870) | (2,870) | |||
Ending balance, shares at Mar. 31, 2019 | 67,926 | ||||
Ending balance, amount at Mar. 31, 2019 | $ 134,204 | (589) | 34,469 | (157,995) | 10,089 |
Begning balance, shares at Dec. 31, 2019 | 71,218 | ||||
Begning balance, amount at Dec. 31, 2019 | $ 136,554 | (589) | 35,770 | (168,287) | 3,448 |
Statement Line Items [Line Items] | |||||
Warrant issued | |||||
Stock-based compensation, shares | 500 | ||||
Stock-based compensation, amount | $ 2,380 | (1,772) | 608 | ||
Net loss | (2,615) | (2,615) | |||
Ending balance, shares at Mar. 31, 2020 | 71,718 | ||||
Ending balance, amount at Mar. 31, 2020 | $ 138,934 | $ (589) | $ 33,998 | $ (170,902) | $ 1,441 |
Basis of preparation
Basis of preparation | 3 Months Ended |
Mar. 31, 2020 | |
Basis Of Preparation | |
NOTE 1 - Basis of preparation | (a) Statement of compliance: The consolidated condensed unaudited interim consolidated financial statements of the Corporation have been prepared in accordance with International Financial Reporting Standards (“IFRS”) and its interpretations as issued by the International Accounting Standards Board (“IASB”) and in accordance with IAS 34, Interim Financial Reporting The consolidated condensed interim consolidated financial statements were authorized for issuance by the Board of Directors on May 13, 2020. (b) Basis of measurement: The condensed unaudited interim consolidated financial statements have been prepared on a going concern and on the historical cost basis. The functional currency of the Corporation is the US dollar. Use of estimates and judgments The preparation of the consolidated financial statements in conformity with IFRS requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, income and expenses. Information about critical judgments in applying accounting policies and assumption and estimation uncertainties that have the most significant effect on the amounts recognized in the consolidated financial statements is noted below: Significant estimates include, but are not limited to, the estimation of useful lives of equipment for purposes of depreciation, useful life of lease RUA for purpose of amortization and the valuation of common shares and stock option issued for services. |
Liquidity, Going Concern and Ma
Liquidity, Going Concern and Management’s Response | 3 Months Ended |
Mar. 31, 2020 | |
Liquidity Going Concern And Managements Response | |
NOTE 2 - Liquidity, Going Concern and Management’s Response | Management believes that current cash balances as of March 31, 2020 and planed fund raising is sufficient to finance the Company’s operations for at least the next 12 months. However, if necessary, the Company intends to seek additional equity or other financing, should the Company’s liquidity need change. Considering recent developments and the need for additional financing, there exists a material uncertainty that casts substantial doubt about the Corporation’s ability to continue as a going concern. These financial statements do not reflect adjustments that would be necessary. If the going concern assumption is not appropriate, then adjustments may be necessary to the carrying value and classification of assets and liabilities and reported results of operations and such an adjustment could be material. |
Share capital
Share capital | 3 Months Ended |
Mar. 31, 2020 | |
Share Capital | |
NOTE 3 - Share capital | The holders of common shares are entitled to receive dividends as declared, which is at the discretion of the Corporation, and are entitled to one vote per share at the annual general meeting of the Corporation. The Corporation has never paid any dividends. (a) Private placements: There is no private placement during the first quarter of 2020. (b) Stock options: The Corporation has established a stock option plan (the “Plan”) for its key employees, its officers and directors, and certain consultants. The Plan is administered by the Board of Directors of the Corporation. The Board may from time to time designate individuals to whom options to purchase common shares of the Corporation may be granted, the number of shares to be optioned to each, and the option price per share. The option price per share cannot involve a discount to the market price at the time the option is granted. The maximum number of shares which may be optioned under the stock option plan is 7,500,000. The maximum number of shares which may be optioned to any one individual is 15% of the total issued and outstanding common shares. Options under the Plan expire ten years after the grant date and vest either immediately or over periods up to six years, and are equity-settled. As of March 31, 2020, 1 million options could still be granted by the Corporation. The following table provides the activity of stock option awards during the three-month period ended March 31, 2020 and for options outstanding and exercisable at the end of the three-month period ended March 31, 2020, the weighted average exercise price and the weighted average years to expiration. Options outstanding Weighted Weighted average average remaining exercise contractual Number Price life (in years) Outstanding, December 31, 2019 6,090,000 $ 1.78 5.61 Expired – – Cancelled – – – Granted 410,000 2.34 9.69 Outstanding, March 31, 2020 6,500,000 $ 1.81 5.62 Options exercisable 6,175,416 $ 1.78 5.41 (c) Stock-based compensation: Stock -based compensation includes stock and stock option granted to employees and contractors for their service. Three months ended March 31, Employee and contractor expense 2020 2019 Stock and stock option compensation granted in 2015 428,878 677,434 2018 - 13,038 2020 178,632 - Total stock-based compensation expense recognized $ 607,510 $ 690,472 The stock-based compensation expense is disaggregated in the statements of operations and comprehensive loss as follows: Three months ended March 31, 2020 2019 Stock-based compensation pertaining to general and administrative expenses $ 214,439 $ 338,717 Stock-based compensation pertaining to research and development expenses 393,071 351,755 Total $ 607,510 $ 690,472 (d) Warrants : In the first quarter of 2019, the Corporation issued 2,500,000 warrants in connection with one private placement. Each warrant entitles the holder to acquire one common share of the Corporation at an exercise price of $8.00 with a five years term. The warrant was valued at $200,000 and recorded as part of Additional paid in capital. No warrant was issued during the three-month period ended March 31, 2020. |
Earnings per share
Earnings per share | 3 Months Ended |
Mar. 31, 2020 | |
Earnings per share [abstract] | |
NOTE 4 - Earnings per share | Weighted average number of common shares outstanding: Three months ended March 31, 2020 2019 Issued common shares at beginning of period 71,218,706 64,676,256 Effect of shares issued 379,121 2,369,444 Weighted average number of common shares outstanding - basic 71,597,827 67,045,700 Weighted average number of shares outstanding – diluted 71,597,827 67,045,700 There is no difference in diluted as compared to basic earnings per share as the impact would be antidilutive as a result of the net loss. |
Operating lease and other commi
Operating lease and other commitments | 3 Months Ended |
Mar. 31, 2020 | |
Operating Lease And Other Commitment | |
NOTE 5 - Operating lease and other commitments | Effective for annual reporting periods beginning on or after January 1, 2019, IFRS 16 introduced a new approach to lessee accounting that requires a lessee to recognize assets and liabilities for the rights and obligations created by leases. IFRS 16 requires a lessee to recognize assets and liabilities for all leases with a term of more than 12 months. The IASB concluded that such an approach will result in a more faithful representation of a lessee’s assets and liabilities and, together with enhanced disclosures, greater transparency of a lessee’s financial leverage and capital employed. We adopted this standard on January 1, 2019, with an immaterial cumulative adjustment of $11,667 to accumulated deficit rather than retrospectively adjusting prior periods. We used an incremental borrowing rate as a discount rate for our operating leases. The discount rate ranges from 6.37% to 7.05%. The average remaining years for our lease are 0.96 years as of March 31, 2020. The following table provides the changes in the Corporation’s operating lease right-of-use assets for the three months ended March 31, 2020: (amounts in dollars) Operation lease right-of-use asset Balances as of January 1, 2020 $ 135,541 Renewed office lease 144,169 Accumulated amortization (65,307 ) Balances as of March 31, 2020 $ 214,403 The following table provides the changes in the Corporation’s operating lease liability for the three months ended March 31, 2020: (amounts in dollars) Total Balances as of January 1, 2020 $ 147,036 Renewed office lease 144,169 Repayments of lease liability (67,852 ) Other 1,394 Balances as of March 31, 2020 $ 224,747 Lease liability due within one year $ 100,473 Lease liability long term $ 124,274 The total future commitment payment amount for above lease is $232,754 comparing an outstanding lease liability of $224,747 as of March 31, 2020. The difference is due to interest expense. In addition to the lease commitment, the corporation has a future insurance premium payment and copier rent of $60,530 as of March, 31,2020. |
Related Party Transactions
Related Party Transactions | 3 Months Ended |
Mar. 31, 2020 | |
Related party transactions [abstract] | |
NOTE 6 - Related Party Transactions | The only transactions we have with related parties are compensation arrangements for current compensation, share based compensation and compensation under options for our officers and directors. Executive officers and directors participate in the Corporation’s stock option plan. Certain Executive officers are covered under the Corporation’s health plan. Key management personnel compensation is comprised of: Three months ended March 31, 2020 2019 Salaries $ - $ - Short-term employee benefits 550 556 Stock-based compensation 428,878 677,434 $ 429,428 $ 677,990 Total honorariums to the independent directors of the Corporation for participating in Board and Committee meetings were nil for the period ended March 31, 2020 and 2019, respectively. Our Chief Financial Officer receives no compensation as an individual and receives no deferred or incentive compensation. We do make payments based on contract for services rendered to a corporation controlled by him. Amounts paid under this arrangement were $175,000 for the period ended March 31, 2020 and $120,000 for the period ended March 31, 2019, respectively. Our Corporate Legal Counsel receives no compensation as an individual and receives no deferred or incentive compensation. We do make payments based on contract for services rendered to a corporation controlled by him. Amounts paid under this arrangement were $78,998 for the period ended March 31, 2020 and $72,498 for the period ended March 31, 2019, respectively. |
Subsequent events
Subsequent events | 3 Months Ended |
Mar. 31, 2020 | |
Subsequent Events | |
NOTE 7 - Subsequent events | The corporation has determined there are no subsequent events. |
Share capital (Tables)
Share capital (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Share Capital Tables Abstract | |
Weighted average exercise price, and the weighted average remaining contractual life | Options outstanding Weighted Weighted average average remaining exercise contractual Number Price life (in years) Outstanding, December 31, 2019 6,090,000 $ 1.78 5.61 Expired – – Cancelled – – – Granted 410,000 2.34 9.69 Outstanding, March 31, 2020 6,500,000 $ 1.81 5.62 Options exercisable 6,175,416 $ 1.78 5.41 |
Stock and stock option-based compensation expense | Three months ended March 31, Employee and contractor expense 2020 2019 Stock and stock option compensation granted in 2015 428,878 677,434 2018 - 13,038 2020 178,632 - Total stock-based compensation expense recognized $ 607,510 $ 690,472 |
Stock-based compensation expense | Three months ended March 31, 2020 2019 Stock-based compensation pertaining to general and administrative expenses $ 214,439 $ 338,717 Stock-based compensation pertaining to research and development expenses 393,071 351,755 Total $ 607,510 $ 690,472 |
Earnings per share (Tables)
Earnings per share (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Earnings Per Share | |
Weighted average number of common shares outstanding | Three months ended March 31, 2020 2019 Issued common shares at beginning of period 71,218,706 64,676,256 Effect of shares issued 379,121 2,369,444 Weighted average number of common shares outstanding - basic 71,597,827 67,045,700 Weighted average number of shares outstanding – diluted 71,597,827 67,045,700 |
Operating lease and other com_2
Operating lease and other commitments (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Operating Lease And Other Commitments | |
Operating lease right-of-use assets | (amounts in dollars) Operation lease right-of-use asset Balances as of January 1, 2020 $ 135,541 Renewed office lease 144,169 Accumulated amortization (65,307 ) Balances as of March 31, 2020 $ 214,403 |
Operating lease liability | (amounts in dollars) Total Balances as of January 1, 2020 $ 147,036 Renewed office lease 144,169 Repayments of lease liability (67,852 ) Other 1,394 Balances as of March 31, 2020 $ 224,747 Lease liability due within one year $ 100,473 Lease liability long term $ 124,274 |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Related Party Transactions | |
Share based compensation and compensation under options for our officers and directors | Three months ended March 31, 2020 2019 Salaries $ - $ - Short-term employee benefits 550 556 Stock-based compensation 428,878 677,434 $ 429,428 $ 677,990 |
Share capital (Details)
Share capital (Details) - Stock Option [Member] | 3 Months Ended |
Mar. 31, 2020$ / sharesshares | |
Disclosure of financial assets [line items] | |
Number of outstanding balance, Beginning | shares | 6,090,000 |
Expired | shares | |
Cancelled | shares | |
Granted | shares | 410,000 |
Number of outstanding balance, Ending | shares | 6,500,000 |
Options exercisable | shares | 6,175,416 |
Weighted average exercise price, Beginning | $ / shares | $ 1.78 |
Expired | $ / shares | |
Cancelled | $ / shares | |
Granted | $ / shares | 2.34 |
Weighted average exercise price, Ending | $ / shares | 1.81 |
Options exercisable | $ / shares | $ 1.78 |
Weighted average remaining contractual life (in years) | 5 years 7 months 10 days |
Granted | 9 years 8 months 9 days |
Weighted average remaining contractual life options outstanding | 5 years 7 months 13 days |
Weighted average remaining contractual life options exercisable (in years) | 5 years 4 months 28 days |
Share capital (Details 1)
Share capital (Details 1) - USD ($) | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Statement Line Items [Line Items] | ||
Total stock-based compensation expense recognized | $ 607,510 | $ 690,472 |
Granted in 2015 [Member] | ||
Statement Line Items [Line Items] | ||
Total stock-based compensation expense recognized | 428,878 | 677,434 |
Granted in 2018 [Member] | ||
Statement Line Items [Line Items] | ||
Total stock-based compensation expense recognized | 13,038 | |
Granted in 2020 [Member] | ||
Statement Line Items [Line Items] | ||
Total stock-based compensation expense recognized | $ 178,632 |
Share capital (Details 2)
Share capital (Details 2) - USD ($) | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Share Capital Details 2Abstract | ||
Stock-based compensation pertaining to general and administrative | $ 214,439 | $ 338,717 |
Stock-based compensation pertaining to research and development | 393,071 | 351,755 |
Total stock-based compensation expense recognized | $ 607,510 | $ 690,472 |
Share capital (Details Narrativ
Share capital (Details Narrative) | 3 Months Ended |
Mar. 31, 2020USD ($)$ / sharesshares | |
Disclosure of transactions between related parties [line items] | |
Stock option plan, description | The maximum number of shares which may be optioned under the stock option plan is 7,500,000. The maximum number of shares which may be optioned to any one individual is 15% of the total issued and outstanding common shares. Options under the Plan expire ten years after the grant date and vest either immediately or over periods up to six years, and are equity-settled. |
Stock options reserved for future issuance | 1,000,000 |
Private Placements [Member] | |
Disclosure of transactions between related parties [line items] | |
Number of warrants issued | 2,500,000 |
Value of warrant issued | $ | $ 200,000 |
Term of warrants | 5 years |
Warrants exercise price | $ / shares | $ 8 |
Common stock shares issuable upon exercise of each warrant | Each warrant entitles the holder to acquire one common share of the Corporation at an exercise price of $8.00 with a five years term |
Earnings per share (Details)
Earnings per share (Details) - shares | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Earnings Per Share Details Abstract | ||
Issued common shares at beginning of period | 71,218,706 | 64,676,256 |
Effect of shares issued | 379,121 | 2,369,444 |
Weighted average number of common shares outstanding - basic | 71,597,827 | 67,045,700 |
Weighted average number of shares outstanding - diluted | 71,597,827 | 67,045,700 |
Operating lease and other com_3
Operating lease and other commitments (Details) | 3 Months Ended |
Mar. 31, 2020USD ($) | |
Operation Lease And Other Commitment | |
Operating lease right-of-use assets, beginning balance | $ 135,541 |
Operating lease right-of-use assets, Renewed office lease | 144,169 |
Operating lease right-of-use assets, accumulated amortization | (65,307) |
Operating lease right-of-use assets, ending balance | $ 214,403 |
Operating lease and other com_4
Operating lease and other commitments (Details 1) | 3 Months Ended |
Mar. 31, 2020USD ($) | |
Operation Lease And Other Commitment Details 1Abstract | |
Operating lease liability , beginning balance | $ 147,036 |
Operating lease liability, renewed office lease | 144,169 |
Operating lease liability, repayments of lease liability | (67,852) |
OperatingLeaseLiabilityOther | 1,394 |
Operating lease liability, ending balance | 224,747 |
Lease liability due within one year | 100,473 |
Lease liability long term | $ 124,274 |
Operating lease and other com_5
Operating lease and other commitments (Details Narrative) | 3 Months Ended |
Mar. 31, 2020USD ($) | |
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | |
Total future commitment payment due | $ 232,754 |
Outstanding lease liability | 224,747 |
Future Insurance Premium payment | 60,530 |
January 1, 2019 [Member] | |
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | |
Immaterial cumulative adjustment to accumulated deficit upon adoption of IFRS 16 | $ 11,667 |
Description for discount rate changes upon adoption of IFRS 16 | The discount rate ranges from 6.37% to 7.05% |
Average remaining term of lease | 11 months 15 days |
Related Party Transactions (Det
Related Party Transactions (Details) - Officers And Directors [Member] - USD ($) | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Disclosure of transactions between related parties [line items] | ||
Salaries | ||
Short-term employee benefits | 550 | 556 |
Stock-based compensation | 428,878 | 677,434 |
Total | $ 429,428 | $ 677,990 |
Related Party Transactions (D_2
Related Party Transactions (Details Narrative) - USD ($) | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Chief Financial Officers [Member] | ||
Disclosure of transactions between related parties [line items] | ||
Amounts paid under contract for services | $ 175,000 | $ 120,000 |
Corporate Legal Counsel [Member] | ||
Disclosure of transactions between related parties [line items] | ||
Amounts paid under contract for services | $ 78,998 | $ 72,498 |