Document And Entity Information
Document And Entity Information | 6 Months Ended |
Jun. 30, 2020 | |
Document and Entity Information [Abstract] | |
Document Type | S-1 |
Amendment Flag | false |
Entity Registrant Name | ALR Technologies Inc. |
Entity Central Index Key | 0001087022 |
Entity Filer Category | Non-accelerated Filer |
Entity Small Business | true |
Emerging Growth Company | false |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Jun. 30, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Current assets: | ||||
Cash | $ 712 | $ 1,838 | $ 3,378 | $ 3,111 |
Total assets | 712 | 1,838 | 3,378 | 3,111 |
Current liabilities: | ||||
Accounts payable and accrued liabilities | 1,131,676 | 1,128,081 | 1,014,268 | 1,038,073 |
Promissory notes payable due to related parties | 3,031,966 | 3,031,966 | 2,891,966 | 2,891,966 |
Promissory notes payable to unrelated parties | 2,254,353 | 2,254,353 | 2,394,353 | 2,394,353 |
Interest payable | 5,630,831 | 5,364,997 | 4,836,127 | 4,307,256 |
Lines of credit from related parties | 20,472,110 | 19,310,707 | 17,261,650 | 15,347,842 |
Total liabilities | 32,520,936 | 31,090,104 | 28,398,364 | 25,979,490 |
Stockholders' Deficit | ||||
Preferred stock Authorized: 500,000,000 (December 31, 2019 - 500,000,000) shares of preferred stock with a par value of $0.001 per share Shares issued and outstanding: Nil (December 31, 2019 - Nil) shares of preferred stock were issued and outstanding | ||||
Common stock Authorized: Authorized: 10,000,000,000 (December 31, 2019 - 10,000,000,000) shares of common stock with a par value of $0.001 per share Shares issued and outstanding: 270,777,909 shares of common stock (December 31, 2019 - 268,777,909 shares of common stock) | 270,777 | 268,777 | 242,777 | 242,777 |
Additional paid-in capital | 56,848,086 | 56,298,702 | 50,012,445 | 48,308,919 |
Accumulated deficit | (89,639,087) | (87,655,745) | (78,650,208) | (74,528,075) |
Stockholders' deficit | (32,520,224) | (31,088,266) | (28,394,986) | (25,976,379) |
Total liabilities and stockholders' deficit | $ 712 | $ 1,838 | $ 3,378 | $ 3,111 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parentheticals) - $ / shares | Jun. 30, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Statement of Financial Position [Abstract] | ||||
Preferred stock: par value (in Dollars per share) | $ 0.001 | $ 0.001 | $ 0.001 | $ 0.001 |
Preferred stock: Authorized | 500,000,000 | 500,000,000 | 500,000,000 | 500,000,000 |
Preferred stock: issued | 0 | 0 | ||
Preferred stock: outstanding | 0 | 0 | ||
Common stock, par value (in Dollars per share) | $ 0.001 | $ 0.001 | $ 0.001 | $ 0.001 |
Common stock Authorized | 10,000,000,000 | 10,000,000,000 | 10,000,000,000 | 10,000,000,000 |
Common stock Shares, issued | 270,777,909 | 268,777,909 | 242,777,909 | 242,777,909 |
Common stock Shares, outstanding | 270,777,909 | 268,777,909 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Operating Expenses | |||||||
General, selling and administration | $ 131,359 | $ 641,942 | $ 254,404 | $ 986,683 | $ 1,595,936 | $ 1,323,552 | $ 405,556 |
Product development costs | 122,551 | 1,162,879 | 217,761 | 1,217,901 | 1,625,075 | 408,640 | 416,304 |
Professional fees | 429,246 | 208,957 | 466,550 | 437,234 | 523,389 | 451,064 | 244,430 |
Loss from Operations | 683,156 | 2,013,778 | 938,715 | 2,641,818 | 3,744,400 | 2,183,256 | 1,066,290 |
Other Expenses | |||||||
Recovery of expense | (86,236) | ||||||
Interest expense | 525,636 | 1,586,936 | 1,044,627 | 2,082,829 | 5,261,137 | 1,938,877 | 1,861,971 |
Total other expenses | 525,636 | 1,586,936 | 1,044,627 | 2,082,829 | 5,261,137 | 1,938,877 | 1,775,735 |
Net loss | $ (1,208,792) | $ (3,600,714) | $ (1,983,342) | $ (4,724,647) | $ (9,005,537) | $ (4,122,133) | $ (2,842,025) |
Loss per share, basic and diluted | $ 0 | $ (0.01) | $ (0.01) | $ (0.02) | $ (0.04) | $ (0.02) | $ (0.01) |
Weighted average number of shares of common stock outstanding, basic and diluted | 270,777,909 | 245,955,687 | 270,291,721 | 244,366,798 | 256,668,320 | 242,777,909 | 242,777,909 |
Consolidated Statements of Chan
Consolidated Statements of Change in Shareholders Deficit - USD ($) | Common Stock | Additional Paid-In Capital | Retained Earnings | Total |
Balance at year end (in Shares) at Dec. 31, 2016 | 242,777,909 | |||
Balance at year end at Dec. 31, 2016 | $ 242,777 | $ 48,212,548 | $ (71,686,050) | $ (23,230,725) |
Imputed interest | (103,859) | (103,859) | ||
Stock options granted as compensation | 200,230 | 200,230 | ||
Net loss for the year | (2,842,025) | (2,842,025) | ||
Balance at year end (in Shares) at Dec. 31, 2017 | 242,777,909 | |||
Balance at year end at Dec. 31, 2017 | $ 242,777 | 48,308,919 | (74,528,075) | (25,976,379) |
Imputed interest | 122,183 | 122,183 | ||
Stock options granted as compensation | 1,581,343 | 1,581,343 | ||
Net loss for the year | (4,122,133) | (4,122,133) | ||
Balance at year end (in Shares) at Dec. 31, 2018 | 242,777,909 | |||
Balance at year end at Dec. 31, 2018 | $ 242,777 | 50,012,445 | (78,650,208) | (28,394,986) |
Issuance of common stock for exercise of stock options (in Shares) | 26,000,000 | |||
Issuance of common stock for exercise of stock options | $ 26,000 | 39,000 | 65,000 | |
Imputed interest | 122,488 | 122,488 | ||
Stock options granted as compensation | 6,124,769 | 6,124,769 | ||
Net loss for the year | (9,005,537) | $ (9,005,537) | ||
Balance at year end (in Shares) at Dec. 31, 2019 | 268,777,909 | 268,777,909 | ||
Balance at year end at Dec. 31, 2019 | $ 268,777 | $ 56,298,702 | $ (87,655,745) | $ (31,088,266) |
Net loss for the year | $ (1,983,342) | |||
Balance at year end (in Shares) at Jun. 30, 2020 | 270,777,909 | |||
Balance at year end at Jun. 30, 2020 | $ (32,520,224) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
OPERATING ACTIVITIES | |||||
Net loss | $ (1,983,342) | $ (4,724,647) | $ (9,005,537) | $ (4,122,133) | $ (2,842,025) |
Stock-based compensation-interest expense | 1,085,371 | 3,243,812 | |||
Stock-based compensation-product development costs | 18,804 | 1,048,318 | 1,243,644 | 186,476 | 66,800 |
Stock-based compensation-professional fees | 391,843 | 392,677 | 392,677 | 401,151 | 52,492 |
Stock-based compensation-general, selling and administration | 805,865 | 1,244,636 | 993,716 | 80,938 | |
Unpaid interest expense on line of credit | 1,365,967 | 1,287,822 | 1,202,250 | ||
Non-cash imputed interest expense | 60,737 | 60,856 | 122,488 | 122,183 | 154,848 |
Non-cash gain on reversal of expense | (86,236) | ||||
Accrued interest on line of credit | 719,455 | 672,145 | |||
Changes in assets and liabilities: | |||||
Decrease in prepaid expenses | 1,429 | ||||
Increase in accounts payable and accrued liabilities | 83,595 | 48,507 | 128,813 | 13,725 | 95,106 |
Increase in interest payable | 265,834 | 264,434 | 528,870 | 528,871 | 504,872 |
Net cash used in operating activities | (443,074) | (346,474) | (734,630) | (625,718) | (769,526) |
FINANCING ACTIVITIES | |||||
Proceeds from borrowings on line of credit | 441,948 | 346,819 | 733,090 | 625,986 | 770,030 |
Net cash provided by financing activities | 441,948 | 346,819 | 733,090 | 625,986 | 770,030 |
Increase (decrease) in cash | (1,126) | 345 | (1,540) | 267 | 504 |
Cash, beginning of year | 1,838 | 3,378 | 3,378 | 3,111 | 2,607 |
Cash, end of year | $ 712 | $ 3,723 | $ 1,838 | $ 3,378 | $ 3,111 |
Basis of Presentation, Nature o
Basis of Presentation, Nature of Operations and Going Concern | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Basisof Presentation Natureof Operationsand Going Concern [Abstract] | |||
Basis of Presentation Nature of Operations and Going Concern | 1. Basis of Presentation, Nature of Operations and Going Concern ALR Technologies Inc. (the “Company”) was incorporated under the laws of the state of Nevada on March 24, 1987. On May 16, 2020, the Company incorporated a wholly owned subsidiary, ALR Technologies Sg Pte. Ltd., under the Companies Act of Singapore. The Company has developed its Diabetes Management Solution which is a comprehensive approach to diabetes care consisting of data collection, predictive A1C, insulin dosage adjustment suggestions, performance tracking, remote monitoring and diabetes test supplies. The Company is seeking commercial opportunities to deploy the Diabetes Management Solution in the United States of America, Canada and Singapore. These condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America (“US GAAP”) in US dollars and on a going concern basis, which presumes the realization of assets and the discharge of liabilities and commitments in the normal course of operations for the foreseeable future. Several adverse conditions cast substantial doubt on the validity of this assumption. The Company has incurred significant losses over the six-month periods ended June 30, 2020 and 2019 of $1,983,342 and $4,724,647, respectively. As of June 30, 2020, the Company is unable to self-finance its operations, has a working capital deficit of $32,520,224 (December 31, 2019 - $31,088,266), accumulated deficit of $89,639,087 (December 31, 2019 - $87,655,745), limited resources, no source of operating cash flow and no assurance that sufficient funding will be available to conduct continued product development activities. If the Company is able to finance its required product development activities, there is no assurance the Company’s current projects will be commercially viable or profitable. The Company has debts comprised of accounts payable, interest payable, lines of credit and promissory notes payable totaling $32,520,936 currently due, due on demand or considered delinquent. There is no assurance that the Company will not face additional legal action from creditors regarding the above debts. Any one or a combination of these above conditions could result in the failure of the business and cause the Company to cease operations. The Company’s ability to continue as a going concern is dependent upon the continued financial support of its creditors and its ability to obtain financing to fund working capital and overhead requirements, fund the development of the Company’s product line and, ultimately, the Company’s ability to achieve profitable operations and repay overdue obligations. The Company has obtained short-term financing from its chairman’s family through lines of credit facilities with available borrowing in the principal amount up to $10,300,000 (as of June 30, 2020 the total principal balance outstanding was $10,200,673) (note 5). During 2020, the Company has continued to receive financing from the Chairman in excess of the borrowing limit of the line of credit it has available. The amounts received by the Company from the Chairman have been borrowed under the same terms as the line of credit. The Company and the Chairman have not entered into a new agreement for the amount of borrowing available. The resolution of whether the Company is able to continue as a going concern is dependent upon the realization of management’s plans. The Company plans to raise needed capital through the exercise of share options, increase to existing debt facilities or the acquisition of new debt facilities, and by future common share private placements. There can be no assurance that the Company will be able to raise any additional debt or equity capital from the sources described above, or that the lenders in the line of credit arrangements will maintain the availability of borrowing from the line. If management is unsuccessful in obtaining short-term financing or achieving long-term profitable operations, the Company will be required to cease operations. All of the Company’s debt is either due on demand or is in default, while continuing to accrue interest at its stated rate. The Company will seek to obtain creditors’ consents to delay repayment of the outstanding promissory notes payable and related interest thereto, until it is able to replace this financing with funds generated by operations, recapitalization with replacement debt or from equity financings through private placements. While some of the Company’s creditors have agreed to extend repayment deadlines in the past, there is no assurance that they will continue to do so in the future. In the past, creditors have successfully commenced legal action against the Company to recover debts outstanding. In those instances, the Company was able to obtain financing from related parties to cover the verdict or settlement; however, there is no assurance that the Company would be able to obtain the same financing in the future. If the Company is unsuccessful in obtaining financing to cover any potential verdicts or settlements, the Company will be required to cease operations. The Company’s activities will necessitate significant uses of working capital beyond 2020. Additionally, the Company’s capital requirements will depend on many factors, including the success of the Company’s continued product development and distribution efforts. The Company plans to continue financing its operations with the lines of credit it has available and future debt arrangements it obtains. While the Company strongly believes that its capital resources will be sufficient in the near term, there is no assurance that the Company’s activities will generate sufficient revenues to sustain its operations without additional capital or if additional capital is needed, that such funds, if available, will be obtainable on terms satisfactory to the Company. In March 2020 the World Health Organization declared coronavirus COVID-19 a global pandemic. This contagious disease outbreak, which has continued to spread, and any related adverse public health developments, has adversely affected workforces, economies, and financial markets globally, potentially leading to an economic downturn. The impact on the Company is not currently determinable but management continues to monitor the situation. | 1. Basis of presentation, nature of operations and going concern ALR Technologies Inc. (the “Company”) was incorporated under the laws of the state of Nevada on March 24, 1987. The Company has developed a compliance monitoring system that will allow for HCPs to remotely monitor patient health conditions and provide patient health management. On October 17, 2011, the Company announced that it had received Section 510(k) clearance from the United States Food and Drug Administration for its Health-e-Connect System. The Company is currently seeking pilot programs to deploy its product. These financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America (“U.S. GAAP”) in U.S. dollars and on a going concern basis, which presumes the realization of assets and the discharge of liabilities and commitments in the normal course of operations for the foreseeable future. Several adverse conditions cast substantial doubt on the validity of this assumption. The Company has incurred significant losses over the past several fiscal years (2019 - $9,005,537; 2018 - $4,122,133), is currently unable to self-finance its operations, has a working capital deficit of $31,088,266 (2018 - $28,394,986), accumulated deficit of $87,655,745 (2018 - $78,650,208), limited resources, no source of operating cash flow, and no assurance that sufficient funding will be available to conduct continued product development activities. If the Company is able to finance its required product development activities, there is no assurance the Company’s current projects will be commercially viable or profitable. The Company has debts comprised of accounts payable and accrued liabilities, interest payable, lines of credit and promissory notes payable totaling $31,090,104 (2018 - $28,398,364) currently due, due on demand or considered delinquent. There is no assurance that the Company will not face additional legal action from creditors regarding delinquent accounts payable, promissory notes payable and interest payable. Any one or a combination of the above conditions could result in the failure of the business and cause the Company to cease operations. The Company’s ability to continue as a going concern is dependent upon the continued financial support of its creditors and its ability to obtain financing to fund working capital and overhead requirements, fund the development of the Company’s product line, and ultimately, the Company’s ability to achieve profitable operations and repay overdue obligations. Management has obtained short-term financing from related parties through line of credit facilities with available borrowing in principal amount up to $12,300,000. As of December 31, 2019, the total principal balance outstanding was $11,757,325. The resolution of whether the Company is able to continue as a going concern is dependent upon the realization of management’s plans. When additional financing is required, the Company plans to raise needed capital through the exercise of share options and by future common share private placements. There can be no assurance that the Company will be able to raise any additional debt or equity capital from the sources described above, or that the lenders in the line of credit arrangements will maintain the availability of borrowing from the line. If management is unsuccessful in obtaining short-term financing or achieving long-term profitable operations, the Company will be required to cease operations. All of the Company’s debt is either due on demand or is in default, while continuing to accrue interest at its stated rates. The Company will seek to obtain creditors’ consents to delay repayment of the outstanding promissory notes payable and related interest thereto, until it is able to replace this financing with funds generated by operations, recapitalization with replacement debt or from equity financings through private placements. While some of the Company’s creditors have agreed to extend repayment deadlines in the past, there is no assurance that they will continue to do so in the future. In the past, creditors have successfully commenced legal action against the Company to recover debts outstanding. In those instances, the Company was able to obtain financing from related parties to cover the verdict or settlement; however, there is no assurance that the Company would be able to obtain the same financing in the future. If the Company is unsuccessful in obtaining financing to cover any potential verdicts or settlements, the Company will be required to cease operations. The Company’s activities will necessitate significant uses of working capital beyond 2019. Additionally, the Company’s capital requirements will depend on many factors, including the success of the Company’s continued product development and distribution efforts. The Company plans to continue financing its operations with the lines of credit it has available. There is no assurance that the Company’s activities will generate sufficient revenues to sustain its operations without additional capital or if additional capital is needed, that such funds, if available, will be obtainable on terms satisfactory to the Company. | 1. Basis of presentation, nature of operations and going concern ALR Technologies Inc. (the “Company”) was incorporated under the laws of the state of Nevada on March 24, 1987. The Company has developed a compliance monitoring system that will allow for health care professionals to remotely monitor patient health conditions and provide patient health management. On October 17, 2011 the Company announced that it had received Section 510(k) clearance from the United States Food and Drug Administration for its Health-e-Connect System. The Company is currently seeking pilot programs to deploy its product. These financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America (“U.S. GAAP”) in U.S dollars and on a going concern basis, which presumes the realization of assets and the discharge of liabilities and commitments in the normal course of operations for the foreseeable future. Several adverse conditions cast substantial doubt on the validity of this assumption. The Company has incurred significant losses over the past several fiscal years (2018 - $4,122,133; 2017 - $2,842,025), is currently unable to self-finance its operations, has a working capital deficit of $28,394,986 (2017 - $25,979,490), accumulated deficit of $78,650,208 (2017 - $74,528,075), limited resources, no source of operating cash flow, and no assurance that sufficient funding will be available to conduct continued product development activities. If the Company is able to finance its required product development activities, there is no assurance the Company’s current projects will be commercially viable or profitable. The Company has debts comprised of accounts payable and accrued liabilities, interest payable, lines of credit and promissory notes payable totaling $28,398,364 currently due, due on demand or considered delinquent. There is no assurance that the Company will not face additional legal action from creditors regarding delinquent accounts payable, promissory notes and interest payable. Any one or a combination of these above conditions could result in the failure of the business and cause the Company to cease operations. The Company’s ability to continue as a going concern is dependent upon the continued financial support of its creditors and its ability to obtain financing to fund working capital and overhead requirements, fund the development of the Company’s product line and ultimately, the Company’s ability to achieve profitable operations and repay overdue obligations. Management has obtained short-term financing from related parties through lines of credit facilities with available borrowing in principal amount up to $10,500,000. As of December 31, 2018, the total principal balance outstanding was $11,024,235. The resolution of whether the Company is able to continue as a going concern is dependent upon the realization of management’s plans. If additional financing is required, the Company plans to raise needed capital through the exercise of share options and by future common share private placements. There can be no assurance that the Company will be able to raise any additional debt or equity capital from the sources described above, or that the lenders in the line of credit arrangements will maintain the availability of borrowing from the line. If management is unsuccessful in obtaining short-term financing or achieving long-term profitable operations, the Company will be required to cease operations. All of the Company’s debt is either due on demand or is in default, while continuing to accrue interest at its stated rates. The Company will seek to obtain creditors’ consents to delay repayment of the outstanding promissory notes payable and related interest thereto, until it is able to replace this financing with funds generated by operations, recapitalization with replacement debt or from equity financings through private placements. While some of the Company’s creditors have agreed to extend repayment deadlines in the past, there is no assurance that they will continue to do so in the future. In the past, creditors have successfully commenced legal action against the Company to recover debts outstanding. In those instances, the Company was able to obtain financing from related parties to cover the verdict or settlement; however, there is no assurance that the Company would be able to obtain the same financing in the future. If the Company is unsuccessful in obtaining financing to cover any potential verdicts or settlements, the Company will be required to cease operations. The Company’s activities will necessitate significant uses of working capital beyond 2018. Additionally, the Company’s capital requirements will depend on many factors, including the success of the Company’s continued product development and distribution efforts. The Company plans to continue financing its operations with the lines of credit it has available. There is no assurance that the Company’s activities will generate sufficient revenues to sustain its operations without additional capital or if additional capital is needed, that such funds, if available, will be obtainable on terms satisfactory to the Company. |
Significant accounting policies
Significant accounting policies | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Accounting Policies [Abstract] | |||
Significant Accounting Policies | 2. Significant Accounting Policies The unaudited condensed consolidated financial statements as of June 30, 2020 and for the period then ended have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). Certain information and note disclosures normally included in annual financial statements prepared in accordance with accounting principles generally accepted in the United States have been condensed or omitted pursuant to those rules and regulations, although the Company believes that the disclosures made are adequate to make the information not misleading. In the opinion of management, all adjustments necessary to present fairly the financial position as of June 30, 2020 and December 31, 2019 and the results of operations and cash flows as of June 30, 2020 and 2019, and for the periods then ended, have been made. Those adjustments consist of normal and recurring adjustments. These unaudited condensed consolidated financial statements should be read in conjunction with the financial statements and notes thereto included in the Annual Report on Form 10-K for the fiscal year ended December 31, 2019. The results of operations for the six-month period ended June 30, 2020 are not necessarily indicative of the results to be expected for the full year. | 2. Significant accounting policies a) Stock-based compensation The Company follows the fair value method of accounting for stock-based compensation. The Company estimates the fair value of share-based payment awards on the date of grant using an option pricing model. The value of the portion of the award that is ultimately expected to vest is recognized as an expense over the requisite service period in the Company’s financial statements. The Company estimates the fair value of the stock options using the Black-Scholes option pricing model. The Black-Scholes option pricing model requires the input of highly subjective assumptions, including the option’s expected life and the price volatility of the underlying stock. b) Income taxes Income taxes are accounted for under the asset and liability method. Deferred income tax assets and liabilities are recognized for the differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis, and operating loss carry-forwards that are available to be carried forward to future years for tax purposes. Deferred income tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred income tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. When it is not considered to be more likely than not that a deferred income tax asset will be realized, a valuation allowance is provided for the excess. The Company follows the accounting requirements associated with uncertainty in income taxes using the provisions of Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 740, Income Taxes c) Use of estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, the measurement of stock-based compensation, the fair value of financial instruments, and the reported amounts of revenues and expenses during the reporting period. Management believes the estimates are reasonable; however, actual results could differ from those estimates. d) Loss per share Basic loss per common share is calculated by dividing net loss by the weighted average number of common shares outstanding during the year. Diluted loss per common share is calculated by dividing the net loss by the sum of the weighted average number of common shares outstanding and the dilutive common equivalent shares outstanding during the year. Common equivalent shares consist of the shares issuable upon exercise of stock options and warrants calculated using the treasury stock method. Common equivalent shares are not included in the calculation of the weighted average number of shares outstanding for diluted loss per common share when the effect would be anti-dilutive. e) Comprehensive income Comprehensive income is the overall change in the net assets of the Company for a period, other than changes attributable to transactions with stockholders. It is made up of net income and other comprehensive income. Other comprehensive income consists of net income and other gains and losses affecting stockholders' equity that under GAAP are excluded from net income. The Company has no items of other comprehensive income (loss) in any period presented. Therefore, as presented in the Company's statements of operations, net loss equals comprehensive loss. f) Fair value of financial instruments The Company’s financial instruments include cash, accounts payable, promissory notes payable, interest payable and lines of credit. The fair values of these financial instruments approximate their carrying values due to the relatively short periods to maturity of these instruments. For fair value measurement, U.S. GAAP establishes a three-tier hierarchy that prioritizes the inputs used in the valuation methodologies in measuring fair value: Level 1 — observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets. Level 2 — include other inputs that are directly or indirectly observable in the marketplace. Level 3 — unobservable inputs which are supported by little or no market activity. g) Recently adopted and issued accounting pronouncements i. Adopted In July 2017, the FASB issued Accounting Standards Update 2017-11, Earnings Per Share (Topic 260), Distinguishing Liabilities from Equity (Topic 480), and Derivative and Hedging (Topic 815) Debt-Debt with Conversion and Other Options In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842). Topic 842 is effective for public companies for annual reporting periods beginning after December 15, 2018, including interim periods within those fiscal years. The new standard establishes a right-of-use ("ROU") model that requires a lessee to record a ROU asset and a lease liability, measured on a discounted basis, on the balance sheet for all leases with terms longer than 12 months. Leases are classified as either finance or operating, with classification affecting the pattern of expense recognition in the statement of income. Originally, entities were required to adopt ASU 2016-02 using a modified retrospective approach, which required prior periods to be presented under this new standard with certain practical expedients available. However, in July 2018, the FASB issued ASU 2018-11, Leases (Topic 842): Targeted Improvements, which allows entities the option of recognizing the cumulative effect of applying the new standard as an adjustment to the opening balance of retained earnings in the year of adoption while continuing to present all prior periods under previous lease accounting guidance. The Company adopted Topic 842 as of January 1, 2019 which did not result in any impact on the Company’s financial statements. ii. Issued The Company has implemented all new accounting pronouncements that are in effect and may impact its financial statements. The Company does not believe that there are any other new accounting pronouncements that have been issued that might have a material impact on its financial position or statements of operations. | 2. Significant accounting policies a) Stock-based compensation The Company follows the fair value method of accounting for stock-based compensation. The Company estimates the fair value of share-based payment awards on the date of grant using an option pricing model. The value of the portion of the award that is ultimately expected to vest is recognized as an expense over the requisite service period in the Company’s financial statements. The Company estimates the fair value of the stock options using the Black-Scholes option pricing model. The Black-Scholes option pricing model requires the input of highly subjective assumptions, including the option’s expected life and the price volatility of the underlying stock. b) Income taxes Income taxes are accounted for under the asset and liability method. Deferred income tax assets and liabilities are recognized for the differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis, and operating loss carry-forwards that are available to be carried forward to future years for tax purposes. Deferred income tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred income tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. When it is not considered to be more likely than not that a deferred income tax asset will be realized, a valuation allowance is provided for the excess. The Company follows the accounting requirements associated with uncertainty in income taxes using the provisions of Financial Accounting Standards Board (“FASB”) ASC 740, Income Taxes c) Use of estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, the measurement of stock-based compensation, the fair value of financial instruments and the reported amounts of revenues and expenses during the reporting period. Management believes the estimates are reasonable; however, actual results could differ from those estimates. d) Loss per share Basic loss per common share is calculated by dividing net loss by the weighted average number of common shares outstanding during the year. Diluted loss per common share is calculated by dividing the net loss by the sum of the weighted average number of common shares outstanding and the dilutive common equivalent shares outstanding during the year. Common equivalent shares consist of the shares issuable upon exercise of stock options and warrants calculated using the treasury stock method. Common equivalent shares are not included in the calculation of the weighted average number of shares outstanding for diluted loss per common shares when the effect would be anti-dilutive. e) Comprehensive income Comprehensive income is the overall change in the net assets of the Company for a period, other than changes attributable to transactions with stockholders. It is made up of net income and other comprehensive income. Other comprehensive income consists of net income and other gains and losses affecting stockholders' equity that under generally accepted accounting principles are excluded from net income. The Company has no items of other comprehensive income (loss) in any period presented. Therefore, as presented in the Company's statements of loss, net loss equals comprehensive loss. f) Fair value of financial instruments The Company’s financial instruments include cash, accounts payable, promissory notes payable, interest payable and lines of credit. The fair values of these financial instruments approximate their carrying values due to the relatively short periods to maturity of these instruments. For fair value measurement, U.S. GAAP establishes a three-tier hierarchy which prioritizes the inputs used in the valuation methodologies in measuring fair value: Level 1 — observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets. Level 2 — include other inputs that are directly or indirectly observable in the marketplace. Level 3 — unobservable inputs which are supported by little or no market activity. g) Recently adopted and issued accounting pronouncements i. Adopted In August 2016, the FASB Statement of Cash Flows (Topic 230): apply, the In May 2017, the FASB Stock Compensation: Scope of Modification Accounting 15, h) Recently adopted and issued accounting pronouncements ii. Issued In July 2017, the FASB Earnings Per Share (Topic (Topic (Topic the Topic Topic Topic any, The Company has implemented all new accounting pronouncements that are in effect and may impact its financial statements. The |
Accounts Payable and Accrued Li
Accounts Payable and Accrued Liabilities | 6 Months Ended |
Jun. 30, 2020 | |
Payables and Accruals [Abstract] | |
Accounts Payable and Accrued Liabilities | 3. Accounts Payable and Accrued Liabilities A summary of the accounts payable and accrued liabilities is as follows: June 30, 2020 December 31, 2019 Accounts payable $ 897,573 $ 887,423 Accrued liabilities 234,103 240,658 $ 1,131,676 $ 1,128,081 |
Promissory notes interest payab
Promissory notes interest payable | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Interest Advancesand Promissory Notes Payable [Abstract] | |||
Promissory notes interest payable | 4. Promissory Notes and Interest Payable a) Promissory notes payable to related parties: A summary of the promissory notes payable to related parties is as follows: Promissory Notes Payable to Related Parties June 30, 2020 December 31, 2019 Promissory notes payable to relatives of directors collateralized by a general security agreement over all the assets of the Company, due on demand: i. Interest at 1% per month $ 720,619 $ 720,619 ii. Interest at 1.25% per month 51,347 51,347 iii. Interest at the U.S. bank prime rate plus 1% 100,000 100,000 iv. Interest at 0.5% per month 695,000 695,000 Promissory notes payable, unsecured, to relatives of a director, bearing interest at 1% per month, due on demand 1,465,000 1,465,000 Total Promissory Notes Payable to Related Parties $ 3,031,966 $ 3,031,966 b) Promissory notes payable to unrelated parties A summary of the promissory notes payable to unrelated parties is as follows: Promissory Notes Payable to Unrelated Parties June 30, December 31, 2020 2019 Unsecured promissory notes payable to unrelated lenders: i. Interest at 1% per month, repayable on March 31, 2009, due on demand $ 450,000 $ 450,000 ii. Interest at 1% per month, with $50,000 repayable on December 31, 2004, $75,000 repayable on August 18, 2007, $75,000 repayable on November 19, 2007 and the balance due on demand. All are due on demand, accruing interest at the same rate 887,456 887,456 iii. Interest at 0.625% per month, with $50,000 repayable on October 5, 2004, $40,000 repayable on December 31, 2004 and $60,000 repayable on July 28, 2006, all due on demand 150,000 150,000 iv. Non-interest-bearing, repayable on July 17, 2005, due on demand 270,912 270,912 v. Interest at 0.667% per month, repayable at $25,000 per month beginning October 2009, none repaid to date 310,985 310,985 vi. Interest at 0.667% per month, with $125,000 due January 15, 2011 125,000 125,000 Promissory notes payable, secured by a guarantee from the Chief Executive Officer, bearing interest at 1% per month 60,000 60,000 Total Promissory Notes Payable to Unrelated Parties $ 2,254,353 $ 2,254,353 c) Interest payable A summary of the interest payable activity is as follows: Interest Balance, December 31, 2018 $ 4,836,127 Interest incurred on promissory notes payable 528,870 Balance, December 31, 2019 5,364,997 Interest incurred on promissory notes payable 265,834 Balance, June 30, 2020 $ 5,630,831 June 30, December 31, 2020 2019 Related parties (relatives of the Chairman) $ 3,035,643 $ 2,876,280 Non-related parties 2,595,188 2,488,717 $ 5,630,831 $ 5,364,997 Historically, all interest payable incurred is from interest incurred at the stated rate of promissory notes issued by the Company. The payment terms, security and any interest payable are based on the underlying promissory notes payable that the Company has outstanding. d) Interest expense During the six months ended June 30, 2020, the Company incurred interest expense of $1,044,627 (2019 - $2,082,829) substantially as follows: · $719,455 (2019 - $672,168) incurred on lines of credit payable; · $264,435 (2019 - $264,434) incurred on promissory notes payables as shown in note 4(b); · $60,737 (2019 - $60,856) incurred from the calculation of imputed interest on accounts payable outstanding for longer than one year, advances payable and promissory notes payable, which had no stated interest rate; and · $nil (2019 - $1,085,371) incurred related to the modification of the option held by creditors of the Company to acquire shares of common stock which were granted as consideration for providing financing to the Company. | 3. Interest, advances and promissory notes payable a) Promissory notes payable to related parties: A summary of the promissory notes payable to related parties is as follows: Promissory Notes Payable to Related Parties December 31, 2019 December 31, 2018 Promissory notes payable to relatives of directors collateralized by a general security agreement over all the assets of the Company, due on demand: i. Interest at 1% per month $ 720,619 $ 580,619 ii. Interest at 1.25% per month 51,347 51,347 iii. Interest at the U.S. bank prime rate plus 1% 100,000 100,000 iv. Interest at 0.5% per month 695,000 695,000 Promissory notes payable, unsecured, to relatives of a director, bearing interest at 1% per month, due on demand 1,465,000 1,465,000 Total Promissory Notes Payable to Related Parties $ 3,031,966 $ 2,891,966 b) Promissory notes payable to unrelated parties A summary of the promissory notes payable to unrelated parties is as follows: Promissory Notes Payable to Unrelated Parties December 31, December 31, 2019 2018 Unsecured promissory notes payable to unrelated lenders: i. Interest at 1% per month, repayable on March 31, 2009, due on demand $ 450,000 $ 450,000 ii. Interest at 1% per month, with $50,000 repayable on December 31, 2004, $75,000 repayable on August 18, 2007, $75,000 repayable on November 19, 2007 and the balance due on demand. All are due on demand, accruing interest at the same rate 887,456 887,456 iii. Interest at 0.625% per month, with $50,000 repayable on October 5, 2004, $40,000 repayable on December 31, 2004 and $60,000 repayable on July 28, 2006, all due on demand 150,000 150,000 iv. Non-interest-bearing, repayable on July 17, 2005, due on demand 270,912 270,912 v. Interest at 0.667% per month, repayable at $25,000 per month beginning October 2009, none repaid to date 310,985 310,985 vi. Interest at 0.667% per month, with $125,000 due January 15, 2011 125,000 125,000 Promissory notes payable, secured by a guarantee from the Chief Executive Officer, bearing interest at 1% per month 60,000 200,000 Total Promissory Notes Payable to Unrelated Parties $ 2,254,353 $ 2,394,353 c) Interest payable A summary of the interest payable activity is as follows: Balance, December 31, 2017 $ 4,307,256 Interest incurred on promissory notes payable 528,871 Balance, December 31, 2018 4,836,127 Interest incurred on promissory notes payable 528,870 Balance, December 31, 2019 $ 5,364,997 Interest payable is due to related and non-related parties as follows: December 31, December 31, 2019 2018 Related parties (relatives of the Chairman) $ 2,876,280 $ 2,554,655 Non-related parties 2,488,717 2,281,472 $ 5,364,997 $ 4,836,127 The payment terms, security and any interest payable are based on the underlying promissory notes payable that the Company has outstanding. d) Interest expense During the year ended December 31, 2019, the Company incurred interest expense of $5,261,137 (2018 - $1,938,877) substantially as follows: · $3,243,812 (2018 - $nil) incurred related to 1) the grant of options as consideration for receiving an increase to the borrowing limit on the line of credit between the Company and the Chairman and 2) the modification of options held by the Chairman and his spouse that were granted in connection with financing provided to the Company; · $528,871 (2018 - $528,871) incurred on promissory notes (note 3(a)) and other payables; · 1,365,966 (2018 - $1,287,822) incurred on lines of credit payable as shown in note 4; and · $122,488 (2018 - $122,184) incurred from the calculation of imputed interest on accounts payable outstanding for longer than one year, advances payable and promissory notes payable, which had no stated interest rate. | 3. Promissory notes and interest payable a) Promissory notes payable to related parties: A summary of the promissory notes payable to related parties is as follows: Promissory Notes Payable to Related Parties December 31, 2018 December 31, 2017 Promissory notes payable to relatives of directors collateralized by a general security agreement over all the assets of the Company, due on demand: i. Interest at 1% per month $ 580,619 $ 580,619 ii. Interest at 1.25% per month 51,347 51,347 iii. Interest at the U.S. bank prime rate plus 1% 100,000 100,000 iv. Interest at 0.5% per month 695,000 695,000 Promissory notes payable, unsecured, to relatives of a director, bearing interest at 1% per month, due on demand 1,465,000 1,465,000 Total Promissory Notes Payable to Related Parties $ 2,891,966 $ 2,891,966 b) Promissory notes payable to unrelated parties A summary of the promissory notes payable to unrelated parties is as follows: Promissory Notes Payable to Unrelated Parties December 31, December 31, 2018 2017 Unsecured promissory notes payable to unrelated lenders: i. Interest at 1% per month, repayable on March 31, 2009, due on demand $ 450,000 $ 450,000 ii. Interest at 1% per month, with $50,000 repayable on December 31, 2004, $75,000 repayable on August 18, 2007, $75,000 repayable on November 19, 2007 and the balance due on demand. All are due on demand, accruing interest at the same rate 887,456 887,456 iii. Interest at 0.625% per month, with $50,000 repayable on October 5, 2004, $40,000 repayable on December 31, 2004, and $60,000 repayable on July 28, 2006, all due on demand 150,000 150,000 iv. Non-interest-bearing, repayable on July 17, 2005, due on demand 270,912 270,912 v. Interest at 0.667% per month, repayable at $25,000 per month beginning October 2009, none repaid to date 310,985 310,985 vi. Interest at 0.667% per month, with $125,000 due January 15, 2011 125,000 125,000 Promissory notes payable, secured by a guarantee from the Chief Executive Officer, bearing interest at 1% per month 200,000 200,000 Total Promissory Notes Payable to Unrelated Parties $ 2,394,353 $ 2,394,353 c) Interest payable A summary of the interest payable activity is as follows: Balance, December 31, 2016 $ 3,629,913 Interest incurred on promissory notes payable 504,873 Transfer from implicit interest to interest payable on promissory note 172,470 Balance, December 31, 2017 4,307,256 Interest incurred on promissory notes payable 528,871 Balance, December 31, 2018 $ 4,836,127 As at December 31, 2017, interest of $172,470 was transferred from imputed interest to interest payable as the Company determined it was more appropriate to treat interest amounts recorded as a liability for one promissory note which had no stated interest rate. The difference between the rate at which interest was imputed and the rate at which interest was deemed reasonable for accrual purposes, totaling $86,236, was recorded as a recovery of expense. December 31, December 31, 2018 2017 Related parties (relatives of the Chairman) $ 2,554,655 $ 2,255,529 Non-related parties 2,281,472 2,051,727 $ 4,836,127 $ 4,307,256 The payment terms, security and any interest payable are based on the underlying promissory notes payable that the Company has outstanding. d) Interest expense During the year ended December 31, 2018, the Company incurred interest expense of $1,938,877 (2017 - $1,861,971) substantially as follows: - $528,871 (2017 - $504,873), including interest incurred on promissory notes (note 3(a)) and other payables; - $1,287,822 (2017 - $1,202,250) incurred on lines of credit payable as shown in note 4; and - $122,183 (2017 - $154,848) incurred from the calculation of imputed interest on accounts payable outstanding for longer than one year, advances payable and promissory notes payable, which had no stated interest rate. |
Lines of Credit
Lines of Credit | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Linesof Credit Related Party [Abstract] | |||
Lines of Credit | 5. Lines of Credit As of June 30, 2020, the Company had two lines of credit as follows: Creditor Interest Rate Borrowing Limit Repayment Terms Amount Outstanding Accrued Interest Total Security Purpose Chairman and CEO 1% per Month $10,300,000 Due on Demand $ 10,200,673 $ 6,175,119 $ 16,375,792 General Security over Assets General Corporate Requirements Wife of Chairman 1% per Month 2,000,000 Due on Demand 2,000,000 2,096,318 4,096,318 General Security over Assets General Corporate Requirements Total $12,300,000 $ 12,200,673 $ 8,271,437 $ 20,472,110 As of December 31, 2019, the Company had two lines of credit as follows: Creditor Interest Rate Borrowing Limit Repayment Terms Principal Borrowed Accrued Interest Total Outstanding Security Purpose Chairman and CEO 1% per Month $10,300,000 Due on Demand $ 9,757,325 $5,576,997 $15,334,322 General Security over Assets General Corporate Requirements Wife of Chairman 1% per Month 2,000,000 Due on Demand 2,000,000 1,976,385 3,976,385 General Security over Assets General Corporate Requirements Total $12,300,000 $ 11,757,325 $ 7,553,382 $ 19,310,707 On December 11, 2019, the Company and the Chairman entered into an amendment agreement to increase the borrowing limit on the line of credit provided by the Chairman to the Company from $8,500,000 to $10,300,000. The terms of amounts to be advanced under the amendment are consistent with the line of credit. In connection with the line of credit, the Company granted the Chairman the option to acquire 120,000,000 shares of common of the Company at a price of $0.015 per share for a term of five years (note 7). | 4. Lines of credit On December 11, 2019, the Company and the Chairman entered into an amendment agreement to increase the borrowing limit on the line of credit provided by the Chairman to the Company from $8,500,000 to $10,300,000. The terms of amounts to be advanced under the amendment are consistent with the line of credit. In connection with the line of credit, the Company granted the Chairman the option to acquire 120,000,000 shares of common of the Company at a price of $0.015 per share for a term of five years (note 6). As of December 31, 2019, the Company has two lines of credit as follows: Creditor Interest Rate Borrowing Limit Repayment Terms Principal Borrowed Accrued Interest Total Outstanding Security Purpose Chairman and CEO 1% per Month $10,300,000 Due on Demand $ 9,757,325 $5,576,997 $15,334,322 General Security over Assets General Corporate Requirements Wife of Chairman 1% per Month 2,000,000 Due on Demand 2,000,000 1,976,385 3,976,385 General Security over Assets General Corporate Requirements Total $12,300,000 $11,757,325 $7,553,382 $19,310,707 As of December 31, 2018, the Company has two lines of credit as follows: Creditor Interest Rate Borrowing Limit Repayment Terms Principal Borrowed Accrued Interest Total Outstanding Security Purpose Chairman and CEO 1% per Month $ 8,500,000 Due on Demand $ 9,024,235 $ 4,501,030 $13,525,265 General Security over Assets General Corporate Requirements Wife of Chairman 1% per Month 2,000,000 Due on Demand 2,000,000 1,736,385 3,736,385 General Security over Assets General Corporate Requirements Total $10,500,000 $ 11,024,235 $ 6,237,415 $17,261,650 | 4. Lines of credit As of December 31, 2018, the Company has two lines of credit as follows: Creditor Interest Rate Borrowing Limit Repayment Terms Principal Borrowed Accrued Interest Total Outstanding Security Purpose Chairman and CEO 1% per Month $ 8,500,000 Due on Demand $ 9,024,235 $ 4,501,030 $13,525,265 General Security over Assets General Corporate Requirements Wife of Chairman 1% per Month 2,000,000 Due on Demand 2,000,000 1,736,385 3,736,385 General Security over Assets General Corporate Requirements Total $10,500,000 $11,024,235 $ 6,237,415 $17,261,650 As of December 31, 2017, the Company has two lines of credit as follows: Creditor Interest Rate Borrowing Limit Repayment Terms Principal Borrowed Accrued Interest Total Outstanding Security Purpose Chairman and CEO 1% per Month $ 8,500,000 Due on Demand $ 8,398,249 $ 3,453,208 $11,851,457 General Security over Assets General Corporate Requirements Wife of Chairman 1% per Month 2,000,000 Due on Demand 2,000,000 1,496,385 3,496,385 General Security over Assets General Corporate Requirements Total $10,500,000 $10,398,249 $ 4,949,593 $15,347,842 |
Capital Stock
Capital Stock | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Stockholders' Equity Note [Abstract] | |||
Capital Stock | 6. Capital Stock a) Authorized capital stock i. Common Stock 10,000,000,000 shares of common stock with a par value of $0.001 per share. ii. Preferred Stock 500,000,000 shares of preferred stock with a par value of $0.001 per share. b) Issued capital stock During the period ended June 30, 2020: On March 11, 2020, the Company issued 2,000,000 restricted shares of common stock at a price of $0.04 per share for a purchase price of $80,000 in exchange for the retirement of $60,000 of accounts payable and $20,000 for the provision of services. During the year ended December 31, 2019: On June 19, 2019, the Company issued 26,000,000 shares of common stock to two individuals for the exercise of stock options as follows: · 25,000,000 shares at an exercise price of $0.002 per share for a purchase price of $50,000. As consideration, the Company retired accrued interest owing to the Chairman on his line of credit totaling $50,000; and · 1,000,000 shares at an exercise price of $0.015 per share for a purchase price of $15,000. As consideration, the Company retired accounts payable totaling $15,000. | 5. Capital stock a) Authorized share capital i. Common stock 10,000,000,000 shares of common stock with a par value of $0.001 per share. ii. Preferred stock 500,000,000 shares of preferred stock with a par value of $0.001 per share. b) Issued share capital During the year ended December 31, 2019: On June 19, 2019, the Company issued 26,000,000 shares of common stock of the Company to two individuals for the exercise of stock options as follows: · 25,000,000 shares at an exercise price of $0.002 per share for a purchase price of $50,000. As consideration, the Company retired accrued interest owing to the Chairman on his line of credit totaling $50,000; and · 1,000,000 shares at an exercise price of $0.015 per share for a purchase price of $15,000. As consideration, the Company retired accounts payable totaling $15,000. During the year ended December 31, 2018: There was no activity during the year ended December 31, 2018. | 5. Capital stock a) Authorized share capital i. Common stock During the year ended December 31, 2018: None During the year ended December 31, 2017: ii. Preferred stock 500,000,000 shares of preferred stock with a par value of $0.001 per share. b) Issued share capital During the years ended December 31, 2018 and December 31, 2017: There was no activity during the years. |
Additional paid in capital
Additional paid in capital | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Additional Paid in Capital [Abstract] | |||
Additional paid in capital | 7. Additional Paid-in Capital Stock options A summary of stock option activity is as follows: Six Months Ended Year Ended June 30, 2020 December 31, 2019 Weighted Average Weighted Average Number of Options Exercise Price Number of Options Exercise Price Outstanding, beginning of period 5,236,401,500 $ 0.003 5,014,851,500 $ 0.002 Granted 30,500,000 $ 0.035 254,050,000 $ 0.028 Exercised - $ - (26,000,000) $ (0.003) Cancelled / Expired (13,500,000) $ (0.034) (6,500,000) $ (0.015) Outstanding, end of period 5,253,401,500 $ 0.004 5,236,401,500 $ 0.003 Exercisable, end of period 5,162,401,500 $ 0.003 5,154,901,500 $ 0.003 During the period ended June 30, 2020: On April 1, 2020, the Company granted one consultant the option to acquire 10,000,000 shares of common stock at a price of $0.035 per share for a term of five years. The fair value of the options granted totaling $391,843 was fully recorded at grant. On May 12, 2020, the Company amended the option to acquire 40,000,000 shares of common stock granted on June 12, 2019 to extend the period of vesting from May 31, 2020 to December 31, 2020. None of these options have vested to date. On May 18, 2020, the Company granted one consultant the option to acquire 500,000 shares of common stock of the Company at a price of $0.035 per share until May 17, 2024. The fair value of the options granted totaling $18,725 was fully recorded at grant. On June 1, 2020, the Company granted one consultant the option to acquire 10,000,000 shares of common stock of the Company at a price of $0.035 per share until May 31, 2025 subject to the consultant contributing to the successful launch of the ALRT Diabetes Solution in Canada, including the enrolment of at least 20,000 patients. The fair value of the options granted totaling $621,853 was not recorded, as it cannot be determined that it is more likely than not that the performance condition will be met. On June 5, 2020, the Company granted one sales agent the option to acquire 10,000,000 shares of common stock of the Company at a price of $0.035 per share until May 31, 2025 subject to the agent enrolling 20,000 patients into the ALRT Diabetes Solution by May 31, 2021. The fair value of the options granted totaling $494,868 was not recorded, as it cannot be determined that it is more likely than not that the performance condition will be met. During the six-month period ended June 30, 2020, the Company recorded a further $79 (June 30, 2019 - $824) in compensation expense related to vesting of stock options granted in previous years. During the year ended December 31, 2019: On February 4, 2019, the Company granted a consultant the option to acquire a total of 2,500,000 shares of common stock of the Company at a price of $0.035 per share for a term of five years. The fair value of the options granted totaled $99,723 and was fully recorded at grant. On March 15, 2019, the Company granted an option to acquire 9,150,000 shares of common stock of the Company at a price of $0.035 per share for a term of five years. The option to acquire 2,500,000 shares of common stock was granted to one consultant and the option to acquire 6,650,000 shares of common stock was granted to one director. The fair value of the options granted totaled $364,058 and was fully recorded at grant. On April 12, 2019, the Company modified options to acquire 564,350,200 shares of common stock of the Company by extending the expiry date to April 12, 2024. The options modified had: · exercise prices ranging from $0.002 to $0.03 per share; and · expiration dates ranging from April 19, 2019 to May 29, 2020 immediately prior to the modification. The fair value related to the extension of the life of the options totaled $1,150,060 and was recorded at the modification date. On May 6, 2019, the Company granted options to acquire 13,000,000 shares of common stock of the Company at a price of $0.035 per share for a term of five years to three directors of the Company. The fair value of the options granted totaled $467,845 and was fully recorded at grant. On May 17, 2019, the Company granted options to acquire 27,900,000 shares of common stock of the Company at a price of $0.035 per share for a term of five years to eleven consultants, one director and one employee of the Company. The fair value of the options granted totaled $1,059,856 and was fully recorded at grant. On May 31, 2019, the Company granted options to acquire 10,000,000 shares of common stock of the Company at a price of $0.035 per share for a term of one year to one consultant. The option to acquire 10,000,000 shares would vest based on achievements of performance milestones. was not recorded, as it cannot be determined that it is more likely than not that the performance conditions will be met. These options expired on May 30, 2020. On June 12, 2019, the Company granted options to acquire 40,000,000 shares of common stock of the Company at a price of $0.05 per share until May 15, 2024 to three sales agents. The option to acquire 40,000,000 shares will vest based on achievements of performance milestones. was not recorded, as it cannot be determined that it is more likely than not that the performance conditions will be met. On June 17, 2019, the Company granted options to acquire 5,000,000 shares of common stock of the Company at a price of $0.035 per share for a term of five years to one advisor. The fair value of the options granted totaled $189,865 . On June 17, 2019, the Company granted options to acquire 5,000,000 shares of common stock of the Company at a price of $0.05 per share for a term of five years to a sales agent. The option to acquire 5,000,000 shares will vest based on achievements of performance milestones. The fair value of the options granted totaled $189,833 was not recorded, as it cannot be determined that it is more likely than not that the performance conditions will be met. On June 24, 2019, options granted on January 31, 2018 to acquire 24,000,000 shares of common stock at a price of $0.015 for a term of five years that were subject to vest based on the achievement of certain performance milestones were modified as follows: · the option to acquire 4,000,000 shares of common stock was cancelled; and · the performance conditions were modified. No compensation expense was reversed related to the cancellation of the unvested options as no compensation expense related to these options had been previously recorded. No compensation expense related to the modification of the options was recorded, as the change in vesting conditions did not make it more likely than not that the performance conditions will be met. On July 15, 2019, the Company granted a consultant options to acquire 7,500,000 shares of common stock of the Company at a price of $0.035 per share exercisable until February 3, 2024. The fair value of the options granted totaled $318,530 and was fully recorded at grant. On August 16, 2019, the Company granted a consultant the option to acquire an aggregate 2,500,000 shares of common stock of the Company at a price of $0.05 per share. The option to acquire 2,500,000 shares will vest based on achievements of performance milestones. The fair value of the options granted totaling $108,655 was not recorded, as it cannot be determined that it is more likely than not that the performance conditions will be met. On September 6, 2019, the Company granted a consultant the option to acquire 1,000,000 shares of common stock of the Company at a price of $0.05 per share for a term of five years. The option to acquire 1,000,000 shares will vest based on achievements of performance milestones. was not recorded, as it cannot be determined that it is more likely than not that the performance conditions will be met. On September 17, 2019, the Company granted a consultant the option to acquire 5,000,000 shares of common stock of the Company at a price of $0.035 per share for a term of five years. The fair value of the options granted totaled $194,850 and was fully recorded at grant. On October 3, 2019, the Company granted two advisors the option to acquire an aggregate 3,500,000 shares of common stock of the Company at a price of $0.035 per share for a term of five years. Options to acquire 2,500,000 shares of common stock will vest upon the advisor entering into a full-time role with the Company. The fair value of the options granted totaled $136,399 of which $38,971 has been recorded related to the vested options. On October 24, 2019, the Company granted two advisors the option to acquire an aggregate 2,000,000 shares of common stock of the Company at a price of $0.035 per share for a term of five years. The fair value of the options granted totaled $63,940 and was fully recorded at grant. On December 11, 2019 the Company granted one creditor the option to acquire 120,000,000 shares of common of the Company at a price of $0.015 per share for a term of five years in connection with receiving line of credit financing (note 5). The fair value of the options granted totaled $2,158,441 and was fully recorded upon the Company entering into the financing agreement with the creditor . During the year ended December 31, 2019, the Company recorded a further $18,630 in compensation expense related to vesting of stock options granted in previous years. Options Outstanding: The options outstanding at June 30, 2020 and December 31, 2019 were as follows: June 30, 2020 December 31, 2019 Expiry Date Options Exercise Price Intrinsic Value Options Exercise Price Intrinsic Value May 30, 2020 - $ - $ - 10,000,000 $ 0.035 $ - July 1, 2021 4,365,001,300 $ 0.002 $ 0.037 4,365,001,300 $ 0.002 $ 0.015 November 27, 2022 6,950,000 $ 0.015 $ 0.024 7,200,000 $ 0.015 $ 0.002 January 31, 2023 40,500,000 $ 0.015 $ 0.024 40,500,000 $ 0.015 $ 0.002 June 13, 2023 5,000,000 $ 0.015 $ 0.024 5,000,000 $ 0.015 $ 0.002 October 1, 2023 300,000 $ 0.050 $ - 300,000 $ 0.050 $ - February 3, 2024 10,000,000 $ 0.035 $ 0.004 10,000,000 $ 0.035 $ - March 14, 2024 9,150,000 $ 0.035 $ 0.004 9,150,000 $ 0.035 $ - April 12, 2024 560,000,200 $ 0.002 $ 0.037 560,000,200 $ 0.002 $ 0.015 April 12, 2024 3,900,000 $ 0.015 $ 0.024 4,150,000 $ 0.015 $ 0.002 April 12, 2024 200,000 $ 0.030 $ 0.009 200,000 $ 0.030 $ - May 6, 2024 13,000,000 $ 0.035 $ 0.004 13,000,000 $ 0.035 $ - May 17, 2024 40,000,000 $ 0.050 $ - 40,000,000 $ 0.050 $ - May 17, 2024 25,400,000 $ 0.035 $ 0.004 27,900,000 $ 0.035 $ - June 17, 2024 5,000,000 $ 0.050 $ - 5,000,000 $ 0.050 $ - June 17, 2024 5,000,000 $ 0.035 $ 0.004 5,000,000 $ 0.035 $ - August 16, 2024 2,500,000 $ 0.050 $ - 2,500,000 $ 0.050 $ - September 6, 2024 1,000,000 $ 0.050 $ - 1,000,000 $ 0.050 $ - September 17, 2024 5,000,000 $ 0.035 $ 0.004 5,000,000 $ 0.035 $ - October 3, 2024 3,500,000 $ 0.035 $ 0.004 3,500,000 $ 0.035 $ - October 24, 2024 2,000,000 $ 0.035 $ 0.004 2,000,000 $ 0.035 $ - December 11, 2024 120,000,000 $ 0.015 $ 0.024 120,000,000 $ 0.015 $ 0.002 April 1, 2025 10,000,000 $ 0.035 $ 0.004 - $ - $ - May 31, 2025 20,000,000 $ 0.035 $ 0.004 - $ - $ - Total 5,253,401,500 $ 0.004 $ 0.036 5,236,401,500 $ 0.003 $ 0.014 Weighted Average Remaining Contractual Life 1.48 1.96 The expense incurred related to stock options was allocated as follows: Three Months Three Months Six Months Six Months Interest expense $ — $ 1,085,371 $ — $ 1,085,371 Product development 18,725 1,047,981 18,804 1,048,318 Professional 391,843 193,485 391,843 392,677 General, selling and administration — 541,209 — 805,865 $ 410,568 $ 2,868,046 $ 410,647 $ 3,332,231 The Company uses the fair value method for determining stock-based compensation for all options granted during the fiscal periods. The fair value was determined using the Black-Scholes option pricing model based on the following weighted average assumptions: June 30, December 31, Risk-free interest rate 0.38 % 1.84 % Expected life 4.9 Years 5 years Expected dividends 0 % 0 % Expected volatility 320 % 306 % Forfeiture rate 0 0 % The weighted average fair value for the options granted during the six months ended June 30, 2020 was $0.05 (December 31, 2019 - $0.03). | 6. Additional paid-in capital Stock options A summary of stock option activity is as follows: Year Ended Year Ended December 31, 2019 December 31, 2018 Weighted Average Weighted Average Number of Options Exercise Price Number of Options Exercise Price Outstanding, beginning of period 5,014,851,500 $ 0.002 4,963,851,500 $ 0.002 Granted 254,050,000 $ 0.028 52,500,000 $ 0.015 Exercised (26,000,000) $ (0.003) - $ - Cancelled (6,500,000) $ (0.015) (1,500,000) $ (0.015) Outstanding, end of period 5,236,401,500 $ 0.003 5,014,851,500 $ 0.002 Exercisable, end of period 5,154,901,500 $ 0.003 4,987,851,500 $ 0.002 During the year ended December 31, 2019: On February 4, 2019, the Company granted a consultant the option to acquire a total of 2,500,000 shares of common stock of the Company at a price of $0.035 per share for a term of five years. The fair value of the options granted totaled $99,723 and was fully recorded at grant. On March 15, 2019, the Company granted an option to acquire 9,150,000 shares of common stock of the Company at a price of $0.035 per share for a term of five years. The option to acquire 2,500,000 shares of common stock was granted to one consultant and the option to acquire 6,650,000 shares of common stock was granted to one director. The fair value of the options granted totaled $364,058 and was fully recorded at grant. On April 12, 2019, the Company modified options to acquire 564,350,200 shares of common stock of the Company by extending the expiry date to April 12, 2024. The options modified had: · exercise prices ranging from $0.002 to $0.03 per share; and · expiration dates ranging from April 19, 2019 to May 29, 2020 immediately prior to the modification. The fair value related to the extension of the life of the options totaled $1,150,060 and was recorded at the modification date. On May 6, 2019, the Company granted options to acquire 13,000,000 shares of common stock of the Company at a price of $0.035 per share for a term of five years to three directors of the Company. The fair value of the options granted totaled $467,845 and was fully recorded at grant. On May 17, 2019, the Company granted options to acquire 27,900,000 shares of common stock of the Company at a price of $0.035 per share for a term of five years to eleven consultants, one director and one employee of the Company. The fair value of the options granted totaled $1,059,856 and was fully recorded at grant. On May 31, 2019, the Company granted options to acquire 10,000,000 shares of common stock of the Company at a price of $0.035 per share for a term of one year to one consultant. The option to acquire 10,000,000 shares will vest based on achievements of performance milestones. was not recorded, as it cannot be determined that it is more likely than not that the performance conditions will be met. On June 12, 2019, the Company granted options to acquire 40,000,000 shares of common stock of the Company at a price of $0.05 per share until May 15, 2024 to three sales agents. The option to acquire 40,000,000 shares will vest based on achievements of performance milestones. was not recorded, as it cannot be determined that it is more likely than not that the performance conditions will be met. On June 17, 2019, the Company granted options to acquire 5,000,000 shares of common stock of the Company at a price of $0.035 per share for a term of five years to one advisor. The fair value of the options granted totaled $189,865 . On June 17, 2019, the Company granted options to acquire 5,000,000 shares of common stock of the Company at a price of $0.05 per share for a term of five years to a sales agent. The option to acquire 5,000,000 shares will vest based on achievements of performance milestones. The fair value of the options granted totaled $189,833 was not recorded, as it cannot be determined that it is more likely than not that the performance conditions will be met. On June 24, 2019, options granted on January 31, 2018 to acquire 24,000,000 shares of common stock at a price of $0.015 for a term of five years that were subject to vest based on the achievement of certain performance milestones were modified as follows: · the option to acquire 4,000,000 shares of common stock was cancelled; and · the performance conditions were modified. No compensation expense was reversed related to the cancellation of the unvested options as no compensation expense related to these options had been previously recorded. No compensation expense related to the modification of the options was recorded, as the change in vesting conditions did not make it more likely than not that the performance conditions will be met. On July 15, 2019, the Company granted a consultant options to acquire 7,500,000 shares of common stock of the Company at a price of $0.035 per share exercisable until February 3, 2024. The fair value of the options granted totaled $318,530 and was fully recorded at grant. On August 16, 2019, the Company granted a consultant the option to acquire an aggregate 2,500,000 shares of common stock of the Company at a price of $0.05 per share. The option to acquire 2,500,000 shares will vest based on achievements of performance milestones. The fair value of the options granted totaling $108,655 was not recorded, as it cannot be determined that it is more likely than not that the performance conditions will be met. On September 6, 2019, the Company granted a consultant the option to acquire 1,000,000 shares of common stock of the Company at a price of $0.05 per share for a term of five years. The option to acquire 1,000,000 shares will vest based on achievements of performance milestones. was not recorded, as it cannot be determined that it is more likely than not that the performance conditions will be met. On September 17, 2019, the Company granted a consultant the option to acquire 5,000,000 shares of common stock of the Company at a price of $0.035 per share for a term of five years. The fair value of the options granted totaled $194,850 and was fully recorded at grant. On October 3, 2019, the Company granted two advisors the option to acquire an aggregate 3,500,000 shares of common stock of the Company at a price of $0.035 per share for a term of five years. Options to acquire 2,500,000 shares of common stock will vest upon the advisor entering into a full-time role with the Company. The fair value of the options granted totaled $136,399 of which $38,971 has been recorded related to the vested options. On October 24, 2019, the Company granted two advisors the option to acquire an aggregate 2,000,000 shares of common stock of the Company at a price of $0.035 per share for a term of five years. The fair value of the options granted totaled $63,940 and was fully recorded at grant. On December 11, 2019 the Company granted one creditor the option to acquire 120,000,000 shares of common of the Company at a price of $0.015 per share for a term of five years in connection with receiving line of credit financing (note 4). The fair value of the options granted totaled $2,158,441 and was fully recorded upon the Company entering into the financing agreement with the creditor . During the year ended December 31, 2019, the Company recorded a further $18,630 in compensation expense related to vesting of stock options granted in previous years. During the year ended December 31, 2018: On January 31, 2018, the Company granted nine consultants and advisors the option to acquire a total of 47,000,000 shares of common stock of the Company at a price of $0.015 per share for a term of five years and one advisor the option to acquire 200,000 shares of common stock of the Company at a price of $0.03 per share until April 18, 2019. Options to acquire 24,000,000 shares of common stock will vest based on achievements of performance milestones by one consulting group (these options were modified on June 24, 2019). The fair value of the options granted totaled $2,722,605, of which $1,338,207 related to vested options was recorded as compensation expense and $1,384,398 related to options with performance vesting conditions was not recorded, as it is expected that the performance conditions will not be met. On June 13, 2018, the Company granted a consultant the option to acquire a total of 5,000,000 shares of common stock of the Company at a price of $0.015 per share for a term of five years. The fair value of the options granted totaled $189,968. On October 1, 2018, the Company granted a consultant the option to acquire a total of 300,000 shares of common stock of the Company at a price of $0.05 per share for a term of five years. The fair value of the options granted totaled $15,926. The Company recorded a further $37,242 in compensation expense related to vesting of stock options granted in previous years. Outstanding The options outstanding at December 31, 2019 and 2018 were as follows: December 31, 2019 December 31, 2018 Expiry Date Options Exercise Price Intrinsic Value Options Exercise Price Intrinsic Value April 18, 2019 - $ $ - 200,000 $ 0.030 $ 0.005 May 21, 2019 - $ $ - 500,000 $ 0.015 $ 0.020 July 25, 2019 - $ $ - 1,000,000 $ 0.015 $ 0.020 August 1, 2019 - $ $ - 1,250,000 $ 0.015 $ 0.020 January 30, 2020 - $ $ - 2,400,000 $ 0.015 $ 0.020 May 29, 2020 - $ $ - 560,000,200 $ 0.002 $ 0.033 May 30, 2020 10,000,000 $ 0.035 $ - - $ - $ - July 1, 2021 4,365,001,300 $ 0.002 $ 0.015 4,390,001,300 $ 0.002 $ 0.033 November 27, 2022 7,200,000 $ 0.015 $ 0.002 7,200,000 $ 0.015 $ 0.020 January 31, 2023 40,500,000 $ 0.015 $ 0.002 47,000,000 $ 0.015 $ 0.020 June 13, 2023 5,000,000 $ 0.015 $ 0.002 5,000,000 $ 0.015 $ 0.020 October 1, 2023 300,000 $ 0.050 $ - 300,000 $ 0.050 $ - February 3, 2024 10,000,000 $ 0.035 $ - - $ - $ - March 14, 2024 9,150,000 $ 0.035 $ - - $ - $ - April 12, 2024 560,000,200 $ 0.002 $ 0.015 - $ - $ - April 12, 2024 4,150,000 $ 0.015 $ 0.002 - $ - $ - April 12, 2024 200,000 $ 0.030 $ - - $ - $ - May 6, 2024 13,000,000 $ 0.035 $ - - $ - $ - May 17, 2024 40,000,000 $ 0.050 $ - - $ - $ - May 17, 2024 27,900,000 $ 0.035 $ - - $ - $ - June 17, 2024 5,000,000 $ 0.050 $ - - $ - $ - June 17, 2024 5,000,000 $ 0.035 $ - - $ - $ - August 16, 2024 2,500,000 $ 0.050 $ - - $ - $ - September 6, 2024 1,000,000 $ 0.050 $ - - $ - $ - September 17, 2024 5,000,000 $ 0.035 $ - - $ - $ - October 3, 2024 3,500,000 $ 0.035 $ - - $ - $ - October 24, 2024 2,000,000 $ 0.035 $ - - $ - $ - December 11, 2024 120,000,000 $ 0.015 $ 0.002 - $ - $ - Total 5,236,401,500 $ 0.003 $ 0.014 5,014,851,500 $ 0.002 $ 0.033 Weighted Average Remaining Contractual Life 1.96 2.40 The fair value of the stock options granted and vested was allocated as follows: December 31, 2019 December 31, Product development expense $ 1,243,644 $ 186,476 Professional expense 392,677 401,151 Selling, general and administrative expenses 1,244,636 993,716 Interest 3,243,812 — $ 6,124,769 $ 1,581,343 The Company uses the fair value method for determining stock-based compensation for all options granted during the fiscal periods. The fair value was determined using the Black-Scholes option pricing model based on the following weighted average assumptions: December 31, December 31, Risk-free interest rate 1.84 % 2.52 % Expected life 5 years 5 years Expected dividends 0 % 0 % Expected volatility 306 % 309 % Forfeiture rate 0 % 0 % The weighted average fair value for the options granted during 2019 was $0.03 (2018 - $0.06). | 6. Additional paid-in capital Stock options A summary of stock option activity is as follows: Year Ended Year Ended December 31, 2018 December 31, 2017 Weighted Average Weighted Average Number of Options Exercise Price Number of Options Exercise Price Outstanding, beginning of period 4,963,851,500 $ 0.002 4,962,301,500 $ 0.013 Granted 52,500,000 $ 0.015 6,500,000 $ 0.002 Cancelled (1,500,000) $ 0.015 (4,950,000) $ (0.061) Outstanding, end of period 5,014,851,500 $ 0.002 4,963,851,500 $ 0.002 Exercisable, end of period 4,987,851,500 $ 0.002 4,958,201,500 $ 0.002 During the year ended December 31, 2018: On January 31, 2018, the Company granted nine consultants and advisors the option to acquire a total of 47,000,000 shares of common stock of the Company at a price of $0.015 per share for a term of five years and one advisor the option to acquire 200,000 shares of common stock of the Company at a price of $0.015 per share until April 18, 2019. Options to acquire 24,000,000 shares of common stock will vest based on achievements of performance milestones by one consulting group. The fair value of the options granted totaled $2,722,605, of which, $1,338,207 related to vested options was recorded as compensation expense and $1,384,398 related to options with performance vesting conditions was not recorded. On June 13, 2018, the Company granted a consultant the option to acquire a total of 5,000,000 shares of common stock of the Company at a price of $0.015 per share for a term of five years. The fair value of the options granted totaled $189,968. On October 1, 2018, the Company granted a consultant the option to acquire a total of 300,000 shares of common stock of the Company at a price of $0.05 per share for a term of five years. The fair value of the options granted totaled $15,926. The Company recorded a further $37,242 in compensation expense related to vesting of stock options granted in previous years. During the year ended December 31, 2017: On November 27, 2017, the Company granted ten individuals the option acquire a total of 6,500,000 shares of common stock of the Company at a price of $0.015 per share for a term of five years. 2,350,000 of the approved options were to a director of the Company and 4,150,000 were to consultants of the Company. The fair value of the options granted total $194,970. In addition, the Company also extended the life of the options to acquire an aggregate of 2,200,000 shares of common stock held by four consultants to November 27, 2022. The Company recorded a further $5,260 in compensation expense related to vesting of stock options granted in previous years. Outstanding The options outstanding at December 31, 2018 and 2017 were as follows: December 31, 2018 December 31, 2017 Expiry Date Options Exercise Price Intrinsic Value Options Exercise Price Intrinsic Value April 18, 2019 200,000 $ 0.030 $ 0.005 - - $ - May 21, 2019 500,000 $ 0.015 $ 0.020 500,000 $ 0.030 $ 0.01 July 25, 2019 1,000,000 $ 0.015 $ 0.020 1,000,000 $ 0.015 $ 0.025 August 1, 2019 1,250,000 $ 0.015 $ 0.020 1,250,000 $ 0.015 $ 0.025 January 30, 2020 2,400,000 $ 0.015 $ 0.020 2,400,000 $ 0.015 $ 0.025 May 29, 2020 560,000,200 $ 0.002 $ 0.033 560,000,200 $ 0.002 $ 0.038 July 1, 2021 4,390,001,300 $ 0.002 $ 0.033 4,390,001,300 $ 0.002 $ 0.038 November 27, 2022 7,200,000 $ 0.015 $ 0.020 8,700,000 $ 0.015 $ 0.025 January 31, 2023 47,000,000 $ 0.015 $ 0.020 - $ - $ - June 13, 2023 5,000,000 $ 0.015 $ 0.020 - $ - $ - October 1, 2023 300,000 $ 0.050 $ - - $ - $ - Total 5,014,851,500 $ 0.002 $ 0.033 4,963,851,500 $ 0.002 $ 0.038 Weighted Average Remaining Contractual Life 2.40 3.38 The Company uses the fair value method for determining stock-based compensation for all options granted during the fiscal periods. The fair value was determined using the Black-Scholes option pricing model based on the following weighted average assumptions: The fair value of the stock options granted and vested was allocated as follows: December 31, 2018 December 31, 2017 Product development expense $ 186,476 $ 66,800 Professional expense 401,151 52,492 Selling, general and administration expenses: 993,716 80,938 $ 1,581,343 $ 200,230 The Company uses the fair value method for determining stock-based compensation for all options granted during the fiscal periods. The fair value was determined using the Black-Scholes option pricing model based on the following weighted average assumptions: December 31, 2018 December 31, 2017 Risk-free interest rate 2.52% 2.34% Expected life 5 years 5 years Expected dividends 0% 0% Expected volatility 309% 330% Forfeiture rate 0% 0% The weighted average fair value for the options granted during 2018 was $0.06 (2017 - $0.03). |
Related party transactions and
Related party transactions and balances | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Related Party Transactions [Abstract] | |||
Related party transactions and balances | 8. Related Party Transactions and Balances Three months ended June 30, 2020 Three months ended June 30, 2019 Six months ended June 30, 2020 Six months ended June 30, 2019 $ $ $ $ Related party transaction included within interest expense: Interest expenses on promissory notes issued to relatives of the Chairman & Chief Executive Officer of the Company 79,171 74,780 157,963 149,562 Interest expense on lines of credit payable to the Chairman & Chief Executive Officer of the Company and his spouse 363,001 338,895 719,455 672,145 Interest expense related to the modification of stock options held by the Chairman and Chief Executive Officer of the Company and his spouse related to financing provided - 1,085,371 - 1,085,371 Related party transactions including within selling, general and administration expenses Consulting fees to the Chairman & Chief Executive Officer of the Company accrued on the line of credit available to the Company 62,400 47,400 124,800 94,800 Stock options granted to four members of the Board of Directors of the Company - 505,832 - 770,421 Selling, general and administration expense related to the modification of stock options to three members of the Board of Directors - 799,625 - 799,625 Related party transactions included within product development expense: Consulting fees to a relative of the Chairman and Chief Executive Officer of the Company 30,000 60,000 60,000 60,000 Interest on promissory notes payable to related parties, management compensation and compensation paid to a relative of a director have been recorded at the exchange amount, which is the amount agreed to by the parties. Options granted to related parties have been recorded at their estimated fair value. | 7. Related party transactions and balances Year Ended December 31, 2019 Year Ended December 31, 2018 Related party transaction included within interest expense: Interest expense on promissory notes issued to relatives of the Chairman and Chief Executive Officer of the Company $ 321,626 $ 299,126 Interest expense on lines of credit payable to the Chairman and Chief Executive Officer of the Company and his spouse $ 1,365,967 $ 1,287,822 Interest expense related to the modification of stock options held by the Chairman and Chief Executive Officer of the Company and his spouse related to financing provided $ 1,085,371 $ - Stock-based compensation related to stock options granted to a director of the Company $ 2,158,441 $ - Related party transactions included within selling, general and administrative expenses Consulting fees to the Chairman and Chief Executive Officer of the Company accrued on the line of credit available to the Company $ 189,600 $ 189,600 Stock-based compensation related to stock options granted to four directors of the Company $ 770,421 $ - Selling, general and administrative expenses related to the modification of stock options to three directors of the Company $ 29,204 $ - Related party transactions included within selling, general and administrative expenses Consulting fees to a relative of the Chairman and Chief Executive Officer of the Company $ 120,000 $ - Interest on promissory notes payable to related parties, management compensation and compensation paid to a relative of a director have been recorded at the exchange amount, which is the amount agreed to by the parties. Options granted to related parties have been recorded at their estimated fair value. | 7. Related party transactions and balances Year Ended December 31, 2018 Year Ended December 31, 2017 Related party transaction included within interest expense: Interest expenses on promissory notes issued to relatives of the Chairman & Chief Executive Officer of the Company $ 299,125 $ 299,125 Interest expense on lines of credit payable to the Chairman and Chief Executive Officer of the Company and his spouse $ 1,287,822 $ 1,202,250 Related party transactions including within selling, general and administration expenses Consulting fees to the Chairman & Chief Executive Officer of the Company accrued on the line of credit available to the Company $ 189,600 $ 189,600 Stock-based compensation related to stock options granted a Director of the Company $ - $ 70,489 Interest on promissory notes payable to related parties, management compensation and compensation paid to a relative of a director have been recorded at the exchange amount, which is the amount agreed to by the parties. Options granted to related parties have been recorded at their estimated fair value. |
Commitments and contingencies
Commitments and contingencies | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Compensation Related Costs [Abstract] | |||
Commitments and contingencies | 9. Commitments and Contingencies a) Contingencies The Company has had three judgments against it relating to overdue promissory notes and accrued interest and a fourth creditor has demanded repayment of an overdue promissory note and accrued interest. To date, the Company has not repaid any of these amounts and could be subject to further action. The legal liability, totaling $1,207,768 (December 31, 2019 - $1,188,968), of these promissory notes and related accrued interest have been fully recognized and recorded by the Company. The Company has accrued interest of $232,472 (December 31, 2019 - $220,472) related to one of these promissory notes. b) Commitments i) The Company has a consulting arrangement with Sidney Chan, Chief Executive Officer and Chairman of the Board of Directors of the Company. Under the terms of the contract, Mr. Chan will be paid $240,000 per annum for services as Chief Executive Officer. The contract can be terminated at any time with thirty days’ notice and the payment of two years’ annual salary. Should the contract be terminated, all debts owed to Mr. Chan and his spouse must be immediately repaid. The initial term of the contract is for one year and automatically renews for continuous one-year terms. Also, under the terms of the contract are the following: (1) Incentive revenue bonus Mr. Chan will be entitled to a 1% net sales commission from the sales of any of the Company’s products at any time during his life, regardless if Mr. Chan is still under contract with the Company. (2) Sale of business If more than 50% of the Company’s stock or assets are sold, Mr. Chan will be compensated for entering into non-compete agreements based on the selling price of the Company or its assets as follows: - 2% of sales price up to $24,999,999 plus; - 3% of sales price between $25,000,000 and $49,999,999 plus; - 4% of sales price between $50,000,000 and $199,999,999 plus; and - 5% of sales price in excess of $200,000,000. ii) On June 13, 2018, Mr. Sidney Chan, Chief Executive Officer and Chairman of the Board of Directors of the Company accepted a proposal from the Board of Directors of the Company to purchase the $5,000,000 convertible debenture financing (the “Financing”). The Note will be convertible for a period of 5 years, will bear interest at a rate of 8% per annum and will be repayable in four equal semi-annual instalments starting 42 months after its issuance until maturity. The Note will be transferable or saleable by the Chairman or other holder thereof, in whole or in part, at any time without notice to the Company. On September 20, 2018, the parties agreed to increase the proposed Financing from $5,000,000 to $7,000,000. On October 25, 2018, the parties agreed to increase the proposed Financing from $7,000,000 to $8,500,000 (the “Amended Financing”). The Amended Financing will continue to be convertible into shares of common stock of the Company at $0.05 per share. On December 11, 2019, the parties agreed to increase the proposed Financing from $8,500,000 to $10,300,000. The Company has reserved up to 500,000,000 shares of common stock with respect to the possible exercise of the Note. The Company and the Chairman are continuing discussions on a definitive agreement to implement the Note with the customary terms, conditions and representations of a commercial lending agreement. The closing of the Amended Financing and sale of the Note will not occur until such time that is 30 days subsequent to the confirmation of the Company’s first commercial sale of its diabetes management software program, which has not yet occurred. | 8. Commitments and contingencies a) Contingencies The Company has had three judgments against it relating to overdue promissory notes and accrued interest, and a fourth creditor has demanded repayment of an overdue promissory note and accrued interest. To date, the Company has not repaid any of these promissory notes and related accrued interest and could be subject to further action. The legal liability, totaling $1,188,968, of these promissory notes and related accrued interest have been fully recognized and recorded by the Company. The Company has accrued additional interest of $220,472 related to one of these promissory notes. b) Commitments The Company has a consulting arrangement with Mr. Sidney Chan, Chief Executive Officer and Chairman of the Board of Directors of the Company. Under the terms of the contract, Mr. Chan will be paid $180,000 per annum for services as Chief Executive Officer. The contract can be terminated at any time with thirty days’ notice and the payment of two years’ annual salary. Should the contract be terminated, all debts owed to Mr. Chan and his spouse must be immediately repaid. The initial term of the contract is for one year and automatically renews for continuous one-year terms. Also, under the terms of the contract are the following: i. Incentive revenue bonus Mr. Chan will be entitled to a 1% net sales commission from the sales of any of the Company’s products at any time during his life, regardless if Mr. Chan is still under contract with the Company. ii. Sale of business If more than 50% of the Company’s stock or assets are sold, Mr. Chan will be compensated for entering into non-compete agreements based on the selling price of the Company or its assets as follows: · 2% of sales price up to $24,999,999 plus · 3% of sales price between $25,000,000 and $49,999,999 plus · 4% of sales price between $50,000,000 and $199,999,999 plus · 5% of sales price in excess of $200,000,000. | 8. Commitments and contingencies a) Contingencies The Company has had three judgments against it relating to overdue promissory notes and accrued interest and a fourth creditor has demanded repayment of an overdue promissory note and accrued interest. To date, the Company has not repaid any of these promissory notes and related accrued interest and could be subject to further action. The legal liability, totaling $1,113,768, of these promissory notes and related accrued interest have been fully recognized and recorded by the Company. The Company has accrued additional interest of $172,470 related to one of these promissory notes. b) Commitments The Company has a consulting arrangement with Mr. Sidney Chan, Chief Executive Officer and Chairman of the Board of Directors of the Company. Under the terms of the contract, Mr. Chan will be paid $180,000 per annum for services as Chief Executive Officer. The contract can be terminated at any time with thirty days’ notice and the payment of two years annual salary. Should the contract be terminated, all debts owed to Mr. Chan and his spouse must be immediately repaid. The initial term of the contract is for one year and automatically renews for continuous one-year terms. Also, under the terms of the contract are the following: i. Incentive revenue bonus Mr. Chan will be entitled to a 1% net sales commission from the sales of any of the Company’s products at any time during his life, regardless if Mr. Chan is still under contract with the Company. ii. Sale of business If more than 50% of the Company’s stock or assets are sold, Mr. Chan will be compensated for entering into non-compete agreements based on the selling price of the Company or its assets as follows: - 2% of sales price up to $24,999,999 plus - 3% of sales price between $25,000,000 and $49,999,999 plus - 4% of sales price between $50,000,000 and $199,999,999 plus - 5% of sales price in excess of $200,000,000. |
Financial instruments
Financial instruments | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure Text Block Supplement [Abstract] | ||
Financial Instruments | 9. Financial instruments The Company’s financial instruments consist of cash, accounts payable, interest payable, promissory notes payable to unrelated parties, promissory notes payable to related parties and lines of credit from related parties. a) Fair value The fair values of cash and certain accounts payable approximate their carrying values due to the relatively short periods to maturity of these instruments. Certain accounts payable have been outstanding longer than one year. The Company has recorded imputed interest at a rate of 1% per month over the period the payables have been outstanding for longer than one year, with a corresponding amount recognized in additional paid-in capital. The calculated amount represents the implicit compensation for the use of funds beyond a reasonable term for regular trade payables. For the purposes of fair value analysis, promissory notes payable to related parties and promissory notes payable to unrelated parties can be separated into two classes of financial liabilities: i. Interest-bearing promissory notes, lines of credit and related interest payable; and ii. Non-interest-bearing promissory notes past due. The interest-bearing promissory notes payable are all delinquent and have continued to accrue interest at their stated rates. The Company currently does not have the funds to extinguish these debts and will continue to incur interest until such time as the liabilities are extinguished. There is not an active market for delinquent loans for a Company with a similar financial position. Management asserts the carrying values of the promissory notes and related interest payable are a reasonable estimate of fair value, as they represent the Company’s best estimate of their legal obligation for these debts. As there is no observable market for interest rates on similar promissory notes, the fair value was estimated using Level 2 inputs in the fair value hierarchy. The Company has one non-interest-bearing promissory note payable past due. There is not an active market for default loans not bearing interest nor is there an observable market for lending to companies with a financial position similar to the Company. The Company has recorded imputed interest at a rate of 1% per month over the life of the promissory notes, with a corresponding amount recognized in additional paid-in capital representing the implicit compensation for the use of funds. Management asserts the payment date for these amounts cannot be reasonably determined. Management further asserts there is not a determinable interest rate for arm’s length borrowings based on the current financial position of the Company and asserts the carrying value is the best estimate of the Company’s legal liability and represents the fair value for the promissory note. This would be considered a Level 2 input in the fair value hierarchy. b) Credit risk Financial instruments that potentially subject the Company to credit risk consist of cash. The Company only has an immaterial cash balance and is not exposed to significant credit risk. c) Market risk Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate due to changes in market prices. Market risk comprises two types of risk: interest rate risk and foreign currency risk. i. Interest rate risk Interest rate risk consists of two components: a) Cash flow risk To the extent that payments made or received on the Company’s monetary assets and liabilities are affected by changes in the prevailing market interest rates, the Company is exposed to interest rate cash flow risk. The Company is exposed to interest rate cash flow risk on promissory notes payable of $500,000, which incur a variable interest rate of prime plus 1%. A hypothetical change of 1% on interest rates would increase or decrease net loss and comprehensive loss by $5,000. b) Price risk To the extent that changes in prevailing market interest rates differ from the interest rate on the Company’s monetary assets and liabilities, the Company is exposed to price risk. The Company’s promissory notes payable consist of $500,000 of variable interest rate notes and $4,786,319 of fixed interest rate notes. All of these notes are past due and are currently due on demand while interest continues to accrue. Due to the delinquency of the fixed interest rate promissory notes payable, there is no active market for these instruments and fluctuations in market interest rates do not have a significant impact on their estimated fair values as of December 31, 2019. At December 31, 2019, the effect on net loss and comprehensive loss of a hypothetical change of 1% in market interest rate cannot be reasonably determined. ii. Foreign currency risk The Company incurs certain accounts payable and expenses in Canadian dollars and is exposed to fluctuations in changes in exchange rates between the U.S. and Canadian dollars. As at December 31, 2019, the effect on net loss and comprehensive loss of a hypothetical change of 10% between the U.S. and Canadian dollars would not be material. The Company has not entered into any foreign currency contracts to mitigate risk. | 9. Financial instruments The Company’s financial instruments consist of cash, accounts payable, interest payable, promissory notes payable to unrelated parties, promissory notes payable to related parties and lines of credit from related parties. a) Fair value The fair values of cash and certain accounts payable and accrued liabilities approximate their carrying values due to the relatively short periods to maturity of these instruments. Certain accounts payable have been outstanding longer than one year. The Company has recorded imputed interest at a rate of 1% per month over the period the payables have been outstanding for longer than one year, with a corresponding amount recognized in additional paid-in capital. The calculated amount represents the implicit compensation for the use of funds beyond a reasonable term for regular trade payables. For the purposes of fair value analysis, promissory notes payable to related parties and promissory notes payable to unrelated parties can be separated into two classes of financial liabilities. i. Interest-bearing promissory notes, lines of credit and related interest payable; and ii. Non-interest-bearing promissory notes past due. The interest-bearing promissory notes payable are all delinquent and have continued to accrue interest at their stated rates. The Company currently does not have the funds to extinguish these debts and will continue to incur interest until such time as the liabilities are extinguished. There is not an active market for delinquent loans for a Company with a similar financial position. Management asserts the carrying values of the promissory notes and related interest payable are a reasonable estimate of fair value as they represent the Company’s best estimate of their legal obligation for these debts. As there is no observable market for interest rates on similar promissory notes, the fair value was estimated using Level 2 inputs in the fair value hierarchy. The Company has one non-interest-bearing promissory note payable past due. There is not an active market for default loans not bearing interest nor is there an observable market for lending to companies with a financial position similar to the Company. The Company has recorded imputed interest at a rate of 1% per month over the life of the promissory notes, with a corresponding amount recognized in additional paid-in capital representing the implicit compensation for the use of funds. Management asserts the payment date for these amounts cannot be reasonably determined. Management further asserts there is not a determinable interest rate for arm’s length borrowings based on the current financial position of the Company and asserts the carrying value is the best estimate of the Company’s legal liability and represents the fair value for the promissory note. This would be considered a Level 2 input in the fair value hierarchy. b) Credit risk Financial instruments that potentially subject the Company to credit risk consist of cash. The Company only has an immaterial cash balance and is not exposed to significant credit risk. c) Market risk Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises two types of risk: interest rate risk and foreign currency risk. i. Interest rate risk Interest rate risk consists of two components: a) Cash flow risk To the extent that payments made or received on the Company’s monetary assets and liabilities are affected by changes in the prevailing market interest rates, the Company is exposed to interest rate cash flow risk. The Company is exposed to interest rate cash flow risk on promissory notes payable of $500,000, which incur a variable interest rate of prime plus 1%. A hypothetical change of 1% on interest rates would increase or decrease net loss and comprehensive loss by $5,000. b) Price risk To the extent that changes in prevailing market interest rates differ from the interest rate on the Company’s monetary assets and liabilities, the Company is exposed to price risk. The Company’s promissory notes payable consist of $500,000 of variable interest rate notes and $4,786,319 of fixed interest rate notes. All of these notes are past due and are currently due on demand while interest continues to accrue. Due to the delinquency of the fixed interest rate promissory notes payable, there is no active market for these instruments and fluctuations in market interest rates do not have a significant impact on their estimated fair values as of December 31, 2018. At December 31, 2018, the effect on the net loss and comprehensive loss of a hypothetical change of 1% in market interest rate cannot be reasonably determined. d) Foreign currency risk The Company incurs certain accounts payable and expenses in Canadian dollars and is exposed to fluctuations in changes in exchange rates between the US and Canadian dollars. As at December 31, 2018, the effect on net loss and comprehensive loss of a hypothetical change of 10% between the US and Canadian dollars would not be material. The Company has not entered into any foreign currency contracts to mitigate risk. |
Income taxes
Income taxes | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | ||
Income Taxes | 10. Income taxes The provision for income taxes differs from the result that would be obtained by applying the statutory tax rate of 21% (2018 - 21%) to income before income taxes. The difference results from the following items: December 31, December 31, Computed expected benefit of income taxes $ (1,891,163 ) $ (865,648 ) Stock-based compensation 1,286,201 332,082 Non-deductible interest expense 25,722 25,658 Impact of change in tax rate — 5,163,267 Expiry of tax credits 18,486 — True up of prior year balances 37,917 — Increase (decrease) in valuation allowance 522,837 (4,655,359 ) Income tax provision $ — $ — The components of the net deferred income tax asset, the statutory tax rate and the amount of the valuation allowance are as follows: December 31, December 31, Net operating loss carried forward $ 44,625,741 $ 42,136,043 Tax rate 21 % 21 % Deferred income tax assets 9,371,406 8,848,569 Valuation allowance (9,371,406 ) (8,848,569 ) Net deferred income tax asset $ — $ — The potential benefit of the deferred income tax asset has not been recognized in these financial statements since it cannot be assured that it is more likely than not that such benefit will be utilized in future years. The Company believes that the available objective evidence creates sufficient uncertainty regarding the realizability of the deferred income tax assets such that a full valuation allowance has been recorded. The operating losses amounting to $44,625,741 for utilization in the United States of America, the jurisdiction where they were incurred, will expire between 2020 and 2039 if they are not used. The following table lists the fiscal year in which the loss was incurred and the expiration date of the operating loss carry-forwards: Fiscal Year Amount Expiry Date 2000 $ 4,425,866 2020 2001 3,681,189 2021 2002 2,503,951 2022 2003 2,775,900 2023 2004 1,250,783 2024 2005 1,304,283 2025 2006 1,532,322 2026 2007 1,479,818 2027 2008 1,599,919 2028 2009 1,723,146 2029 2010 822,678 2030 2011 1,746,615 2031 2012 1,638,421 2032 2013 2,568,328 2033 2014 2,855,631 2034 2015 2,761,513 2035 2016 2,471,978 2036 2017 2,487,072 2037 2018 2,238,048 2038 2019 2,758,280 2039 Total $ 44,625,741 | 10. Income taxes The provision for income taxes differs from the result that would be obtained by applying the statutory tax rate of 21% (2017 - 34%) to income before income taxes. The difference results from the following items: December 31, 2018 December 31, 2017 Computed expected benefit of income taxes $ (865,648) $ (966,289) Stock-based compensation 332,082 68,037 Non-deductible interest expense 25,658 52,648 Impact of change in tax rate 5,163,267 - Increase (decrease) in valuation allowance (4,655,359) 845,604 Income tax provision $ - $ - The components of the net deferred income tax asset, the statutory tax rate and the amount of the valuation allowance are as follows: December 31, 2018 December 31, 2017 Net operating loss carried forward $ 42,136,043 $ 39,717,436 Tax rate 21% 34% Deferred income tax assets 8,848,569 13,503,928 Valuation allowance (8,848,569) (13,503,928) Net deferred income tax asset $ - $ - The potential benefit of the deferred income tax asset has not been recognized in these financial statements since it cannot be assured that it is more likely than not that such benefit will be utilized in future years. The Company believes that the available objective evidence creates sufficient uncertainty regarding the realizability of the deferred income tax assets such that a full valuation allowance has been recorded. The operating losses amounting to $42,136,043 for utilization in the United States of America, the jurisdiction where they were incurred, will expire between 2019 and 2038 if they are not used. The following table lists the fiscal year in which the loss was incurred and the expiration date of the operating loss carry-forwards: Fiscal Year Amount Expiry Date 1999 $ 88,022 2019 2000 4,425,866 2020 2001 3,681,189 2021 2002 2,503,951 2022 2003 2,775,900 2023 2004 1,250,783 2024 2005 1,304,283 2025 2006 1,532,322 2026 2007 1,479,818 2027 2008 1,599,919 2028 2009 1,723,146 2029 2010 822,678 2030 2011 1,746,615 2031 2012 1,638,421 2032 2013 2,568,328 2033 2014 2,855,631 2034 2015 2,761,513 2035 2016 2,471,978 2036 2017 2,487,072 2037 2018 2,418,608 2038 Total $ 42,136,043 |
Subsequent event
Subsequent event | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Subsequent Events [Abstract] | |||
Subsequent Events | 10. Subsequent Events a) On August 9, 2020, the Company’s Board of Directors approved the issuance of up to 240,000 common shares of the Company at $0.05 per share for a total amount of $12,000 for the provision of services. b) On August 9, 2020, the Company’s Board of Directors approved the issuance of up to 69,500,000 options subject to the optionees entering into concurrent agreements with the Company based on their related sales, consulting or employment roles. All options have an exercise price of $0.05 per share with 22,000,000 options expiring on May 17, 2024 and 47,500,000 options expiring on May 31, 2025. | 11. Subsequent events On February 14, 2020, the Company entered into a debt settlement agreement with a non-related party whereby the parties agreed to settle $80,000, consisting of $60,000 accounts payable and $20,000 for the provision of services under a Services Agreement dated January 1, 2020, with the issuance of 2,000,000 restricted shares of common stock of the Company. The shares were issued on March 11, 2020. On February 26, 2020, the Board of Directors approved an increase the compensation paid to the CEO of the Company from $180,000 per annum to $240,000 per annum retroactive to January 1, 2020. | 11. Subsequent events a) On February 4, 2019, the Company granted a consultant the option to acquire of total of 2,500,000 shares of common stock of the Company at a price of $0.035 per share for a term of five years. b) On March 15, 2019, the Company granted the option to acquire 9,150,000 shares of common stock of the Company at a price of $0.035 per share. The option to acquire 2,500,000 shares of common stock was granted to one consultant and the option to acquire 6,650,000 shares of common stock was granted to one director. |
Significant accounting polici_2
Significant accounting policies (Policies) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Significant Accounting Policies Policies Abstract | ||
Stock-based compensation | a) Stock-based compensation The Company follows the fair value method of accounting for stock-based compensation. The Company estimates the fair value of share-based payment awards on the date of grant using an option pricing model. The value of the portion of the award that is ultimately expected to vest is recognized as an expense over the requisite service period in the Company’s financial statements. The Company estimates the fair value of the stock options using the Black-Scholes option pricing model. The Black-Scholes option pricing model requires the input of highly subjective assumptions, including the option’s expected life and the price volatility of the underlying stock. | a) Stock-based compensation The Company follows the fair value method of accounting for stock-based compensation. The Company estimates the fair value of share-based payment awards on the date of grant using an option pricing model. The value of the portion of the award that is ultimately expected to vest is recognized as an expense over the requisite service period in the Company’s financial statements. The Company estimates the fair value of the stock options using the Black-Scholes option pricing model. The Black-Scholes option pricing model requires the input of highly subjective assumptions, including the option’s expected life and the price volatility of the underlying stock. |
Income taxes | b) Income taxes Income taxes are accounted for under the asset and liability method. Deferred income tax assets and liabilities are recognized for the differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis, and operating loss carry-forwards that are available to be carried forward to future years for tax purposes. Deferred income tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred income tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. When it is not considered to be more likely than not that a deferred income tax asset will be realized, a valuation allowance is provided for the excess. The Company follows the accounting requirements associated with uncertainty in income taxes using the provisions of Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 740, Income Taxes | b) Income taxes Income taxes are accounted for under the asset and liability method. Deferred income tax assets and liabilities are recognized for the differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis, and operating loss carry-forwards that are available to be carried forward to future years for tax purposes. Deferred income tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred income tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. When it is not considered to be more likely than not that a deferred income tax asset will be realized, a valuation allowance is provided for the excess. The Company follows the accounting requirements associated with uncertainty in income taxes using the provisions of Financial Accounting Standards Board (“FASB”) ASC 740, Income Taxes |
Use of estimates | c) Use of estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, the measurement of stock-based compensation, the fair value of financial instruments, and the reported amounts of revenues and expenses during the reporting period. Management believes the estimates are reasonable; however, actual results could differ from those estimates. | c) Use of estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, the measurement of stock-based compensation, the fair value of financial instruments and the reported amounts of revenues and expenses during the reporting period. Management believes the estimates are reasonable; however, actual results could differ from those estimates. |
Loss per share | d) Loss per share Basic loss per common share is calculated by dividing net loss by the weighted average number of common shares outstanding during the year. Diluted loss per common share is calculated by dividing the net loss by the sum of the weighted average number of common shares outstanding and the dilutive common equivalent shares outstanding during the year. Common equivalent shares consist of the shares issuable upon exercise of stock options and warrants calculated using the treasury stock method. Common equivalent shares are not included in the calculation of the weighted average number of shares outstanding for diluted loss per common share when the effect would be anti-dilutive. | d) Loss per share Basic loss per common share is calculated by dividing net loss by the weighted average number of common shares outstanding during the year. Diluted loss per common share is calculated by dividing the net loss by the sum of the weighted average number of common shares outstanding and the dilutive common equivalent shares outstanding during the year. Common equivalent shares consist of the shares issuable upon exercise of stock options and warrants calculated using the treasury stock method. Common equivalent shares are not included in the calculation of the weighted average number of shares outstanding for diluted loss per common shares when the effect would be anti-dilutive. |
Comprehensive income | e) Comprehensive income Comprehensive income is the overall change in the net assets of the Company for a period, other than changes attributable to transactions with stockholders. It is made up of net income and other comprehensive income. Other comprehensive income consists of net income and other gains and losses affecting stockholders' equity that under GAAP are excluded from net income. The Company has no items of other comprehensive income (loss) in any period presented. Therefore, as presented in the Company's statements of operations, net loss equals comprehensive loss. | e) Comprehensive income Comprehensive income is the overall change in the net assets of the Company for a period, other than changes attributable to transactions with stockholders. It is made up of net income and other comprehensive income. Other comprehensive income consists of net income and other gains and losses affecting stockholders' equity that under generally accepted accounting principles are excluded from net income. The Company has no items of other comprehensive income (loss) in any period presented. Therefore, as presented in the Company's statements of loss, net loss equals comprehensive loss. |
Fair value of financial instruments | f) Fair value of financial instruments The Company’s financial instruments include cash, accounts payable, promissory notes payable, interest payable and lines of credit. The fair values of these financial instruments approximate their carrying values due to the relatively short periods to maturity of these instruments. For fair value measurement, U.S. GAAP establishes a three-tier hierarchy that prioritizes the inputs used in the valuation methodologies in measuring fair value: Level 1 — observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets. Level 2 — include other inputs that are directly or indirectly observable in the marketplace. Level 3 — unobservable inputs which are supported by little or no market activity. | f) Fair value of financial instruments The Company’s financial instruments include cash, accounts payable, promissory notes payable, interest payable and lines of credit. The fair values of these financial instruments approximate their carrying values due to the relatively short periods to maturity of these instruments. For fair value measurement, U.S. GAAP establishes a three-tier hierarchy which prioritizes the inputs used in the valuation methodologies in measuring fair value: Level 1 — observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets. Level 2 — include other inputs that are directly or indirectly observable in the marketplace. Level 3 — unobservable inputs which are supported by little or no market activity. |
Recently adopted and issued accounting pronouncements | g) Recently adopted and issued accounting pronouncements i. Adopted In July 2017, the FASB issued Accounting Standards Update 2017-11, Earnings Per Share (Topic 260), Distinguishing Liabilities from Equity (Topic 480), and Derivative and Hedging (Topic 815) Debt-Debt with Conversion and Other Options In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842). Topic 842 is effective for public companies for annual reporting periods beginning after December 15, 2018, including interim periods within those fiscal years. The new standard establishes a right-of-use ("ROU") model that requires a lessee to record a ROU asset and a lease liability, measured on a discounted basis, on the balance sheet for all leases with terms longer than 12 months. Leases are classified as either finance or operating, with classification affecting the pattern of expense recognition in the statement of income. Originally, entities were required to adopt ASU 2016-02 using a modified retrospective approach, which required prior periods to be presented under this new standard with certain practical expedients available. However, in July 2018, the FASB issued ASU 2018-11, Leases (Topic 842): Targeted Improvements, which allows entities the option of recognizing the cumulative effect of applying the new standard as an adjustment to the opening balance of retained earnings in the year of adoption while continuing to present all prior periods under previous lease accounting guidance. The Company adopted Topic 842 as of January 1, 2019 which did not result in any impact on the Company’s financial statements. ii. Issued The Company has implemented all new accounting pronouncements that are in effect and may impact its financial statements. The Company does not believe that there are any other new accounting pronouncements that have been issued that might have a material impact on its financial position or statements of operations. | g) Recently adopted and issued accounting pronouncements i. Adopted In August 2016, the FASB Statement of Cash Flows (Topic 230): apply, the In May 2017, the FASB Stock Compensation: Scope of Modification Accounting 15, h) Recently adopted and issued accounting pronouncements ii. Issued In July 2017, the FASB Earnings Per Share (Topic (Topic (Topic the Topic Topic Topic any, The Company has implemented all new accounting pronouncements that are in effect and may impact its financial statements. The |
Accounts Payable and Accrued _2
Accounts Payable and Accrued Liabilities (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Accounts Payable And Accrued Liabilities Tables Abstract | |
Schedule of accounts payable and accrued liabilities | June 30, 2020 December 31, 2019 Accounts payable $ 897,573 $ 887,423 Accrued liabilities 234,103 240,658 $ 1,131,676 $ 1,128,081 |
Promissory notes interest pay_2
Promissory notes interest payable (Tables) | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Interest Advancesand Promissory Notes Payable [Abstract] | |||
Schedule of Promissory Notes Payable - Relatives of Board of Directors | Promissory Notes Payable to Related Parties June 30, 2020 December 31, 2019 Promissory notes payable to relatives of directors collateralized by a general security agreement over all the assets of the Company, due on demand: i. Interest at 1% per month $ 720,619 $ 720,619 ii. Interest at 1.25% per month 51,347 51,347 iii. Interest at the U.S. bank prime rate plus 1% 100,000 100,000 iv. Interest at 0.5% per month 695,000 695,000 Promissory notes payable, unsecured, to relatives of a director, bearing interest at 1% per month, due on demand 1,465,000 1,465,000 Total Promissory Notes Payable to Related Parties $ 3,031,966 $ 3,031,966 | A summary of the promissory notes payable to related parties is as follows: Promissory Notes Payable to Related Parties December 31, 2019 December 31, 2018 Promissory notes payable to relatives of directors collateralized by a general security agreement over all the assets of the Company, due on demand: i. Interest at 1% per month $ 720,619 $ 580,619 ii. Interest at 1.25% per month 51,347 51,347 iii. Interest at the U.S. bank prime rate plus 1% 100,000 100,000 iv. Interest at 0.5% per month 695,000 695,000 Promissory notes payable, unsecured, to relatives of a director, bearing interest at 1% per month, due on demand 1,465,000 1,465,000 Total Promissory Notes Payable to Related Parties $ 3,031,966 $ 2,891,966 | A summary of the promissory notes payable to related parties is as follows: Promissory Notes Payable to Related Parties December 31, 2018 December 31, 2017 Promissory notes payable to relatives of directors collateralized by a general security agreement over all the assets of the Company, due on demand: i. Interest at 1% per month $ 580,619 $ 580,619 ii. Interest at 1.25% per month 51,347 51,347 iii. Interest at the U.S. bank prime rate plus 1% 100,000 100,000 iv. Interest at 0.5% per month 695,000 695,000 Promissory notes payable, unsecured, to relatives of a director, bearing interest at 1% per month, due on demand 1,465,000 1,465,000 Total Promissory Notes Payable to Related Parties $ 2,891,966 $ 2,891,966 |
Schedule of Activity of Promissory Notes Payable to Unrelated Lenders | Promissory Notes Payable to Unrelated Parties June 30, December 31, 2020 2019 Unsecured promissory notes payable to unrelated lenders: i. Interest at 1% per month, repayable on March 31, 2009, due on demand $ 450,000 $ 450,000 ii. Interest at 1% per month, with $50,000 repayable on December 31, 2004, $75,000 repayable on August 18, 2007, $75,000 repayable on November 19, 2007 and the balance due on demand. All are due on demand, accruing interest at the same rate 887,456 887,456 iii. Interest at 0.625% per month, with $50,000 repayable on October 5, 2004, $40,000 repayable on December 31, 2004 and $60,000 repayable on July 28, 2006, all due on demand 150,000 150,000 iv. Non-interest-bearing, repayable on July 17, 2005, due on demand 270,912 270,912 v. Interest at 0.667% per month, repayable at $25,000 per month beginning October 2009, none repaid to date 310,985 310,985 vi. Interest at 0.667% per month, with $125,000 due January 15, 2011 125,000 125,000 Promissory notes payable, secured by a guarantee from the Chief Executive Officer, bearing interest at 1% per month 60,000 60,000 Total Promissory Notes Payable to Unrelated Parties $ 2,254,353 $ 2,254,353 | A summary of the promissory notes payable to unrelated parties is as follows: Promissory Notes Payable to Unrelated Parties December 31, December 31, 2019 2018 Unsecured promissory notes payable to unrelated lenders: i. Interest at 1% per month, repayable on March 31, 2009, due on demand $ 450,000 $ 450,000 ii. Interest at 1% per month, with $50,000 repayable on December 31, 2004, $75,000 repayable on August 18, 2007, $75,000 repayable on November 19, 2007 and the balance due on demand. All are due on demand, accruing interest at the same rate 887,456 887,456 iii. Interest at 0.625% per month, with $50,000 repayable on October 5, 2004, $40,000 repayable on December 31, 2004 and $60,000 repayable on July 28, 2006, all due on demand 150,000 150,000 iv. Non-interest-bearing, repayable on July 17, 2005, due on demand 270,912 270,912 v. Interest at 0.667% per month, repayable at $25,000 per month beginning October 2009, none repaid to date 310,985 310,985 vi. Interest at 0.667% per month, with $125,000 due January 15, 2011 125,000 125,000 Promissory notes payable, secured by a guarantee from the Chief Executive Officer, bearing interest at 1% per month 60,000 200,000 Total Promissory Notes Payable to Unrelated Parties $ 2,254,353 $ 2,394,353 | A summary of the promissory notes payable to unrelated parties is as follows: Promissory Notes Payable to Unrelated Parties December 31, December 31, 2018 2017 Unsecured promissory notes payable to unrelated lenders: i. Interest at 1% per month, repayable on March 31, 2009, due on demand $ 450,000 $ 450,000 ii. Interest at 1% per month, with $50,000 repayable on December 31, 2004, $75,000 repayable on August 18, 2007, $75,000 repayable on November 19, 2007 and the balance due on demand. All are due on demand, accruing interest at the same rate 887,456 887,456 iii. Interest at 0.625% per month, with $50,000 repayable on October 5, 2004, $40,000 repayable on December 31, 2004, and $60,000 repayable on July 28, 2006, all due on demand 150,000 150,000 iv. Non-interest-bearing, repayable on July 17, 2005, due on demand 270,912 270,912 v. Interest at 0.667% per month, repayable at $25,000 per month beginning October 2009, none repaid to date 310,985 310,985 vi. Interest at 0.667% per month, with $125,000 due January 15, 2011 125,000 125,000 Promissory notes payable, secured by a guarantee from the Chief Executive Officer, bearing interest at 1% per month 200,000 200,000 Total Promissory Notes Payable to Unrelated Parties $ 2,394,353 $ 2,394,353 |
Schedule of Interest Payable | Interest Balance, December 31, 2018 $ 4,836,127 Interest incurred on promissory notes payable 528,870 Balance, December 31, 2019 5,364,997 Interest incurred on promissory notes payable 265,834 Balance, June 30, 2020 $ 5,630,831 June 30, December 31, 2020 2019 Related parties (relatives of the Chairman) $ 3,035,643 $ 2,876,280 Non-related parties 2,595,188 2,488,717 $ 5,630,831 $ 5,364,997 | A summary of the interest payable activity is as follows: Balance, December 31, 2017 $ 4,307,256 Interest incurred on promissory notes payable 528,871 Balance, December 31, 2018 4,836,127 Interest incurred on promissory notes payable 528,870 Balance, December 31, 2019 $ 5,364,997 Interest payable is due to related and non-related parties as follows: December 31, December 31, 2019 2018 Related parties (relatives of the Chairman) $ 2,876,280 $ 2,554,655 Non-related parties 2,488,717 2,281,472 $ 5,364,997 $ 4,836,127 | Balance, December 31, 2016 $ 3,629,913 Interest incurred on promissory notes payable 504,873 Transfer from implicit interest to interest payable on promissory note 172,470 Balance, December 31, 2017 4,307,256 Interest incurred on promissory notes payable 528,871 Balance, December 31, 2018 $ 4,836,127 December 31, December 31, 2018 2017 Related parties (relatives of the Chairman) $ 2,554,655 $ 2,255,529 Non-related parties 2,281,472 2,051,727 $ 4,836,127 $ 4,307,256 |
Lines of Credit (Tables)
Lines of Credit (Tables) | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Linesof Credit Related Party [Abstract] | |||
Schedule Line of Credit Related Party | As of June 30, 2020, the Company had two lines of credit as follows: Creditor Interest Rate Borrowing Limit Repayment Terms Amount Outstanding Accrued Interest Total Security Purpose Chairman and CEO 1% per Month $10,300,000 Due on Demand $ 10,200,673 $ 6,175,119 $ 16,375,792 General Security over Assets General Corporate Requirements Wife of Chairman 1% per Month 2,000,000 Due on Demand 2,000,000 2,096,318 4,096,318 General Security over Assets General Corporate Requirements Total $12,300,000 $ 12,200,673 $ 8,271,437 $ 20,472,110 As of December 31, 2019, the Company had two lines of credit as follows: Creditor Interest Rate Borrowing Limit Repayment Terms Principal Borrowed Accrued Interest Total Outstanding Security Purpose Chairman and CEO 1% per Month $10,300,000 Due on Demand $ 9,757,325 $5,576,997 $15,334,322 General Security over Assets General Corporate Requirements Wife of Chairman 1% per Month 2,000,000 Due on Demand 2,000,000 1,976,385 3,976,385 General Security over Assets General Corporate Requirements Total $12,300,000 $ 11,757,325 $ 7,553,382 $ 19,310,707 | As of December 31, 2019, the Company has two lines of credit as follows: Creditor Interest Rate Borrowing Limit Repayment Terms Principal Borrowed Accrued Interest Total Outstanding Security Purpose Chairman and CEO 1% per Month $10,300,000 Due on Demand $ 9,757,325 $5,576,997 $15,334,322 General Security over Assets General Corporate Requirements Wife of Chairman 1% per Month 2,000,000 Due on Demand 2,000,000 1,976,385 3,976,385 General Security over Assets General Corporate Requirements Total $12,300,000 $11,757,325 $7,553,382 $19,310,707 As of December 31, 2018, the Company has two lines of credit as follows: Creditor Interest Rate Borrowing Limit Repayment Terms Principal Borrowed Accrued Interest Total Outstanding Security Purpose Chairman and CEO 1% per Month $ 8,500,000 Due on Demand $ 9,024,235 $ 4,501,030 $13,525,265 General Security over Assets General Corporate Requirements Wife of Chairman 1% per Month 2,000,000 Due on Demand 2,000,000 1,736,385 3,736,385 General Security over Assets General Corporate Requirements Total $10,500,000 $ 11,024,235 $ 6,237,415 $17,261,650 | As of December 31, 2018, the Company has two lines of credit as follows: Creditor Interest Rate Borrowing Limit Repayment Terms Principal Borrowed Accrued Interest Total Outstanding Security Purpose Chairman and CEO 1% per Month $ 8,500,000 Due on Demand $ 9,024,235 $ 4,501,030 $13,525,265 General Security over Assets General Corporate Requirements Wife of Chairman 1% per Month 2,000,000 Due on Demand 2,000,000 1,736,385 3,736,385 General Security over Assets General Corporate Requirements Total $10,500,000 $11,024,235 $ 6,237,415 $17,261,650 As of December 31, 2017, the Company has two lines of credit as follows: Creditor Interest Rate Borrowing Limit Repayment Terms Principal Borrowed Accrued Interest Total Outstanding Security Purpose Chairman and CEO 1% per Month $ 8,500,000 Due on Demand $ 8,398,249 $ 3,453,208 $11,851,457 General Security over Assets General Corporate Requirements Wife of Chairman 1% per Month 2,000,000 Due on Demand 2,000,000 1,496,385 3,496,385 General Security over Assets General Corporate Requirements Total $10,500,000 $10,398,249 $ 4,949,593 $15,347,842 |
Additional paid in capital (Tab
Additional paid in capital (Tables) | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Stockholders' Equity Note [Abstract] | |||
Schedule of Share-based Compensation, Stock Options, Activity | Six Months Ended Year Ended June 30, 2020 December 31, 2019 Weighted Average Weighted Average Number of Options Exercise Price Number of Options Exercise Price Outstanding, beginning of period 5,236,401,500 $ 0.003 5,014,851,500 $ 0.002 Granted 30,500,000 $ 0.035 254,050,000 $ 0.028 Exercised - $ - (26,000,000) $ (0.003) Cancelled / Expired (13,500,000) $ (0.034) (6,500,000) $ (0.015) Outstanding, end of period 5,253,401,500 $ 0.004 5,236,401,500 $ 0.003 Exercisable, end of period 5,162,401,500 $ 0.003 5,154,901,500 $ 0.003 | A summary of stock option activity is as follows: Year Ended Year Ended December 31, 2019 December 31, 2018 Weighted Average Weighted Average Number of Options Exercise Price Number of Options Exercise Price Outstanding, beginning of period 5,014,851,500 $ 0.002 4,963,851,500 $ 0.002 Granted 254,050,000 $ 0.028 52,500,000 $ 0.015 Exercised (26,000,000) $ (0.003) - $ - Cancelled (6,500,000) $ (0.015) (1,500,000) $ (0.015) Outstanding, end of period 5,236,401,500 $ 0.003 5,014,851,500 $ 0.002 Exercisable, end of period 5,154,901,500 $ 0.003 4,987,851,500 $ 0.002 | Year Ended Year Ended December 31, 2018 December 31, 2017 Weighted Average Weighted Average Number of Options Exercise Price Number of Options Exercise Price Outstanding, beginning of period 4,963,851,500 $ 0.002 4,962,301,500 $ 0.013 Granted 52,500,000 $ 0.015 6,500,000 $ 0.002 Cancelled (1,500,000) $ 0.015 (4,950,000) $ (0.061) Outstanding, end of period 5,014,851,500 $ 0.002 4,963,851,500 $ 0.002 Exercisable, end of period 4,987,851,500 $ 0.002 4,958,201,500 $ 0.002 |
Schedule of Options Outstanding | June 30, 2020 December 31, 2019 Expiry Date Options Exercise Price Intrinsic Value Options Exercise Price Intrinsic Value May 30, 2020 - $ - $ - 10,000,000 $ 0.035 $ - July 1, 2021 4,365,001,300 $ 0.002 $ 0.037 4,365,001,300 $ 0.002 $ 0.015 November 27, 2022 6,950,000 $ 0.015 $ 0.024 7,200,000 $ 0.015 $ 0.002 January 31, 2023 40,500,000 $ 0.015 $ 0.024 40,500,000 $ 0.015 $ 0.002 June 13, 2023 5,000,000 $ 0.015 $ 0.024 5,000,000 $ 0.015 $ 0.002 October 1, 2023 300,000 $ 0.050 $ - 300,000 $ 0.050 $ - February 3, 2024 10,000,000 $ 0.035 $ 0.004 10,000,000 $ 0.035 $ - March 14, 2024 9,150,000 $ 0.035 $ 0.004 9,150,000 $ 0.035 $ - April 12, 2024 560,000,200 $ 0.002 $ 0.037 560,000,200 $ 0.002 $ 0.015 April 12, 2024 3,900,000 $ 0.015 $ 0.024 4,150,000 $ 0.015 $ 0.002 April 12, 2024 200,000 $ 0.030 $ 0.009 200,000 $ 0.030 $ - May 6, 2024 13,000,000 $ 0.035 $ 0.004 13,000,000 $ 0.035 $ - May 17, 2024 40,000,000 $ 0.050 $ - 40,000,000 $ 0.050 $ - May 17, 2024 25,400,000 $ 0.035 $ 0.004 27,900,000 $ 0.035 $ - June 17, 2024 5,000,000 $ 0.050 $ - 5,000,000 $ 0.050 $ - June 17, 2024 5,000,000 $ 0.035 $ 0.004 5,000,000 $ 0.035 $ - August 16, 2024 2,500,000 $ 0.050 $ - 2,500,000 $ 0.050 $ - September 6, 2024 1,000,000 $ 0.050 $ - 1,000,000 $ 0.050 $ - September 17, 2024 5,000,000 $ 0.035 $ 0.004 5,000,000 $ 0.035 $ - October 3, 2024 3,500,000 $ 0.035 $ 0.004 3,500,000 $ 0.035 $ - October 24, 2024 2,000,000 $ 0.035 $ 0.004 2,000,000 $ 0.035 $ - December 11, 2024 120,000,000 $ 0.015 $ 0.024 120,000,000 $ 0.015 $ 0.002 April 1, 2025 10,000,000 $ 0.035 $ 0.004 - $ - $ - May 31, 2025 20,000,000 $ 0.035 $ 0.004 - $ - $ - Total 5,253,401,500 $ 0.004 $ 0.036 5,236,401,500 $ 0.003 $ 0.014 Weighted Average Remaining Contractual Life 1.48 1.96 | The options outstanding at December 31, 2019 and 2018 were as follows: December 31, 2019 December 31, 2018 Expiry Date Options Exercise Price Intrinsic Value Options Exercise Price Intrinsic Value April 18, 2019 - $ $ - 200,000 $ 0.030 $ 0.005 May 21, 2019 - $ $ - 500,000 $ 0.015 $ 0.020 July 25, 2019 - $ $ - 1,000,000 $ 0.015 $ 0.020 August 1, 2019 - $ $ - 1,250,000 $ 0.015 $ 0.020 January 30, 2020 - $ $ - 2,400,000 $ 0.015 $ 0.020 May 29, 2020 - $ $ - 560,000,200 $ 0.002 $ 0.033 May 30, 2020 10,000,000 $ 0.035 $ - - $ - $ - July 1, 2021 4,365,001,300 $ 0.002 $ 0.015 4,390,001,300 $ 0.002 $ 0.033 November 27, 2022 7,200,000 $ 0.015 $ 0.002 7,200,000 $ 0.015 $ 0.020 January 31, 2023 40,500,000 $ 0.015 $ 0.002 47,000,000 $ 0.015 $ 0.020 June 13, 2023 5,000,000 $ 0.015 $ 0.002 5,000,000 $ 0.015 $ 0.020 October 1, 2023 300,000 $ 0.050 $ - 300,000 $ 0.050 $ - February 3, 2024 10,000,000 $ 0.035 $ - - $ - $ - March 14, 2024 9,150,000 $ 0.035 $ - - $ - $ - April 12, 2024 560,000,200 $ 0.002 $ 0.015 - $ - $ - April 12, 2024 4,150,000 $ 0.015 $ 0.002 - $ - $ - April 12, 2024 200,000 $ 0.030 $ - - $ - $ - May 6, 2024 13,000,000 $ 0.035 $ - - $ - $ - May 17, 2024 40,000,000 $ 0.050 $ - - $ - $ - May 17, 2024 27,900,000 $ 0.035 $ - - $ - $ - June 17, 2024 5,000,000 $ 0.050 $ - - $ - $ - June 17, 2024 5,000,000 $ 0.035 $ - - $ - $ - August 16, 2024 2,500,000 $ 0.050 $ - - $ - $ - September 6, 2024 1,000,000 $ 0.050 $ - - $ - $ - September 17, 2024 5,000,000 $ 0.035 $ - - $ - $ - October 3, 2024 3,500,000 $ 0.035 $ - - $ - $ - October 24, 2024 2,000,000 $ 0.035 $ - - $ - $ - December 11, 2024 120,000,000 $ 0.015 $ 0.002 - $ - $ - Total 5,236,401,500 $ 0.003 $ 0.014 5,014,851,500 $ 0.002 $ 0.033 Weighted Average Remaining Contractual Life 1.96 2.40 | December 31, 2018 December 31, 2017 Expiry Date Options Exercise Price Intrinsic Value Options Exercise Price Intrinsic Value April 18, 2019 200,000 $ 0.030 $ 0.005 - - $ - May 21, 2019 500,000 $ 0.015 $ 0.020 500,000 $ 0.030 $ 0.01 July 25, 2019 1,000,000 $ 0.015 $ 0.020 1,000,000 $ 0.015 $ 0.025 August 1, 2019 1,250,000 $ 0.015 $ 0.020 1,250,000 $ 0.015 $ 0.025 January 30, 2020 2,400,000 $ 0.015 $ 0.020 2,400,000 $ 0.015 $ 0.025 May 29, 2020 560,000,200 $ 0.002 $ 0.033 560,000,200 $ 0.002 $ 0.038 July 1, 2021 4,390,001,300 $ 0.002 $ 0.033 4,390,001,300 $ 0.002 $ 0.038 November 27, 2022 7,200,000 $ 0.015 $ 0.020 8,700,000 $ 0.015 $ 0.025 January 31, 2023 47,000,000 $ 0.015 $ 0.020 - $ - $ - June 13, 2023 5,000,000 $ 0.015 $ 0.020 - $ - $ - October 1, 2023 300,000 $ 0.050 $ - - $ - $ - Total 5,014,851,500 $ 0.002 $ 0.033 4,963,851,500 $ 0.002 $ 0.038 Weighted Average Remaining Contractual Life 2.40 3.38 |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions | June 30, December 31, Risk-free interest rate 0.38 % 1.84 % Expected life 4.9 Years 5 years Expected dividends 0 % 0 % Expected volatility 320 % 306 % Forfeiture rate 0 0 % | The fair value of the stock options granted and vested was allocated as follows: December 31, 2019 December 31, Product development expense $ 1,243,644 $ 186,476 Professional expense 392,677 401,151 Selling, general and administrative expenses 1,244,636 993,716 Interest 3,243,812 — $ 6,124,769 $ 1,581,343 | December 31, 2018 December 31, 2017 Product development expense $ 186,476 $ 66,800 Professional expense 401,151 52,492 Selling, general and administration expenses: 993,716 80,938 $ 1,581,343 $ 200,230 |
Schedule of Fair Value of Stock Options Granted-Allocation | Three Months Three Months Six Months Six Months Interest expense $ — $ 1,085,371 $ — $ 1,085,371 Product development 18,725 1,047,981 18,804 1,048,318 Professional 391,843 193,485 391,843 392,677 General, selling and administration — 541,209 — 805,865 $ 410,568 $ 2,868,046 $ 410,647 $ 3,332,231 | ||
Schedule Of Stock Based Compensation Expense | December 31, December 31, Risk-free interest rate 1.84 % 2.52 % Expected life 5 years 5 years Expected dividends 0 % 0 % Expected volatility 306 % 309 % Forfeiture rate 0 % 0 % | December 31, 2018 December 31, 2017 Risk-free interest rate 2.52% 2.34% Expected life 5 years 5 years Expected dividends 0% 0% Expected volatility 309% 330% Forfeiture rate 0% 0% |
Related party transactions an_2
Related party transactions and balances (Tables) | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Related Party Transactions And Balances | |||
Schedule of related party transactions | Three months ended June 30, 2020 Three months ended June 30, 2019 Six months ended June 30, 2020 Six months ended June 30, 2019 $ $ $ $ Related party transaction included within interest expense: Interest expenses on promissory notes issued to relatives of the Chairman & Chief Executive Officer of the Company 79,171 74,780 157,963 149,562 Interest expense on lines of credit payable to the Chairman & Chief Executive Officer of the Company and his spouse 363,001 338,895 719,455 672,145 Interest expense related to the modification of stock options held by the Chairman and Chief Executive Officer of the Company and his spouse related to financing provided - 1,085,371 - 1,085,371 Related party transactions including within selling, general and administration expenses Consulting fees to the Chairman & Chief Executive Officer of the Company accrued on the line of credit available to the Company 62,400 47,400 124,800 94,800 Stock options granted to four members of the Board of Directors of the Company - 505,832 - 770,421 Selling, general and administration expense related to the modification of stock options to three members of the Board of Directors - 799,625 - 799,625 Related party transactions included within product development expense: Consulting fees to a relative of the Chairman and Chief Executive Officer of the Company 30,000 60,000 60,000 60,000 | Year Ended December 31, 2019 Year Ended December 31, 2018 Related party transaction included within interest expense: Interest expense on promissory notes issued to relatives of the Chairman and Chief Executive Officer of the Company $ 321,626 $ 299,126 Interest expense on lines of credit payable to the Chairman and Chief Executive Officer of the Company and his spouse $ 1,365,967 $ 1,287,822 Interest expense related to the modification of stock options held by the Chairman and Chief Executive Officer of the Company and his spouse related to financing provided $ 1,085,371 $ - Stock-based compensation related to stock options granted to a director of the Company $ 2,158,441 $ - Related party transactions included within selling, general and administrative expenses Consulting fees to the Chairman and Chief Executive Officer of the Company accrued on the line of credit available to the Company $ 189,600 $ 189,600 Stock-based compensation related to stock options granted to four directors of the Company $ 770,421 $ - Selling, general and administrative expenses related to the modification of stock options to three directors of the Company $ 29,204 $ - Related party transactions included within selling, general and administrative expenses Consulting fees to a relative of the Chairman and Chief Executive Officer of the Company $ 120,000 $ - | Year Ended December 31, 2018 Year Ended December 31, 2017 Related party transaction included within interest expense: Interest expenses on promissory notes issued to relatives of the Chairman & Chief Executive Officer of the Company $ 299,125 $ 299,125 Interest expense on lines of credit payable to the Chairman and Chief Executive Officer of the Company and his spouse $ 1,287,822 $ 1,202,250 Related party transactions including within selling, general and administration expenses Consulting fees to the Chairman & Chief Executive Officer of the Company accrued on the line of credit available to the Company $ 189,600 $ 189,600 Stock-based compensation related to stock options granted a Director of the Company $ - $ 70,489 |
Income taxes (Tables)
Income taxes (Tables) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | ||
Schedule of Components of Income Tax Expense (Benefit) | The provision for income taxes differs from the result that would be obtained by applying the statutory tax rate of 21% (2018 - 21%) to income before income taxes. The difference results from the following items: December 31, December 31, Computed expected benefit of income taxes $ (1,891,163 ) $ (865,648 ) Stock-based compensation 1,286,201 332,082 Non-deductible interest expense 25,722 25,658 Impact of change in tax rate — 5,163,267 Expiry of tax credits 18,486 — True up of prior year balances 37,917 — Increase (decrease) in valuation allowance 522,837 (4,655,359 ) Income tax provision $ — $ — | December 31, 2018 December 31, 2017 Computed expected benefit of income taxes $ (865,648) $ (966,289) Stock-based compensation 332,082 68,037 Non-deductible interest expense 25,658 52,648 Impact of change in tax rate 5,163,267 - Increase (decrease) in valuation allowance (4,655,359) 845,604 Income tax provision $ - $ - |
Schedule of Deferred Tax Assets and Liabilities | The components of the net deferred income tax asset, the statutory tax rate and the amount of the valuation allowance are as follows: December 31, December 31, Net operating loss carried forward $ 44,625,741 $ 42,136,043 Tax rate 21 % 21 % Deferred income tax assets 9,371,406 8,848,569 Valuation allowance (9,371,406 ) (8,848,569 ) Net deferred income tax asset $ — $ — | December 31, 2018 December 31, 2017 Net operating loss carried forward $ 42,136,043 $ 39,717,436 Tax rate 21% 34% Deferred income tax assets 8,848,569 13,503,928 Valuation allowance (8,848,569) (13,503,928) Net deferred income tax asset $ - $ - |
Summary of Operating Loss Carryforwards | Fiscal Year Amount Expiry Date 2000 $ 4,425,866 2020 2001 3,681,189 2021 2002 2,503,951 2022 2003 2,775,900 2023 2004 1,250,783 2024 2005 1,304,283 2025 2006 1,532,322 2026 2007 1,479,818 2027 2008 1,599,919 2028 2009 1,723,146 2029 2010 822,678 2030 2011 1,746,615 2031 2012 1,638,421 2032 2013 2,568,328 2033 2014 2,855,631 2034 2015 2,761,513 2035 2016 2,471,978 2036 2017 2,487,072 2037 2018 2,238,048 2038 2019 2,758,280 2039 Total $ 44,625,741 | Fiscal Year Amount Expiry Date 1999 $ 88,022 2019 2000 4,425,866 2020 2001 3,681,189 2021 2002 2,503,951 2022 2003 2,775,900 2023 2004 1,250,783 2024 2005 1,304,283 2025 2006 1,532,322 2026 2007 1,479,818 2027 2008 1,599,919 2028 2009 1,723,146 2029 2010 822,678 2030 2011 1,746,615 2031 2012 1,638,421 2032 2013 2,568,328 2033 2014 2,855,631 2034 2015 2,761,513 2035 2016 2,471,978 2036 2017 2,487,072 2037 2018 2,418,608 2038 Total $ 42,136,043 |
Basis of Presentation, Nature_2
Basis of Presentation, Nature of Operations and Going Concern (Details Narrative) - USD ($) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Basisof Presentation Natureof Operationsand Going Concern [Abstract] | |||||||
Working Capital Deficit | $ 32,520,224 | $ 32,520,224 | $ 31,088,266 | $ 28,394,986 | $ 25,979,490 | ||
Net Income (Loss) Attributable to Parent | $ (1,208,792) | $ (3,600,714) | $ (1,983,342) | $ (4,724,647) | $ (9,005,537) | $ (4,122,133) | $ (2,842,025) |
Accounts Payable and Accrued _3
Accounts Payable and Accrued Liabilities (Details) - USD ($) | Jun. 30, 2020 | Dec. 31, 2019 |
Basisof Presentation Natureof Operationsand Going Concern | ||
Accounts payable | $ 897,573 | $ 887,423 |
Accrued liabilities | 234,103 | 240,658 |
Total | $ 1,131,676 | $ 1,128,081 |
Interest, advances and promisso
Interest, advances and promissory notes payable (Details) - Promissory Notes Payable - Relatives of Board of Directors - USD ($) | Jun. 30, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Promissory notes payable to relatives of directors collateralized by a general security agreement over all the assets of the Company, due on demand: | ||||
i.Interest at 1% per month | $ 720,619 | $ 720,619 | $ 580,619 | $ 580,619 |
ii.Interest at 1.25% per month | 51,347 | 51,347 | 51,347 | 51,347 |
iii.Interest at the U.S. bank prime rate plus 1% | 100,000 | 100,000 | 100,000 | 100,000 |
iv. Interest at 0.5% per month | 695,000 | 695,000 | 695,000 | 695,000 |
Promissory notes payable, unsecured, to relatives of a director, bearing interest at 1% per month, due on demand | 1,465,000 | 1,465,000 | 1,465,000 | 1,465,000 |
Total Related Promissory Notes | $ 3,031,966 | $ 3,031,966 | $ 2,891,966 | $ 2,891,966 |
Interest, advances and promis_2
Interest, advances and promissory notes payable (Details) - Unsecured Promissory Notes Payable to Unrelated Leaders - USD ($) | Jun. 30, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Unsecured promissory notes payable to unrelated lenders: | ||||
i. Interest at 1% per month, repayable on March 31, 2009, due on demand | $ 450,000 | $ 450,000 | $ 450,000 | $ 450,000 |
ii. Interest at 1% per month, with $50,000 repayable on December 31, 2004, $75,000 repayable on August 18, 2007, $75,000 repayable on November 19, 2007 and the balance due on demand. All are due on demand, accruing interest at the same rate. | 887,456 | 887,456 | 887,456 | 887,455 |
iii. Interest at 0.625% per month, with $50,000 repayable on October 5, 2004, $40,000 repayable on December 31, 2004, and $60,000 repayable on July 28, 2006, all due on demand | 150,000 | 150,000 | 150,000 | 150,000 |
iv. Non-interest-bearing, repayable on July 17, 2005, due on demand | 270,912 | 270,912 | 270,912 | 270,912 |
v. Non-interest-bearing loan repayable at $25,000 per month beginning October 2009, none repaid to date | 310,985 | 310,985 | 310,985 | 310,986 |
vi. Interest at 0.667% per month, with $125,000 due January 15, 2011 | 125,000 | 125,000 | 125,000 | 125,000 |
Promissory notes payable, secured by a guarantee from the Chief Executive Officer, bearing interest at 1% per month | 60,000 | 60,000 | 200,000 | 200,000 |
Total Promissory Notes Payable to Unrelated Parties | $ 2,254,353 | $ 2,254,353 | $ 2,394,353 | $ 2,394,353 |
Interest, advances and promis_3
Interest, advances and promissory notes payable (Details) - Summary of Interest Payable Activity - USD ($) | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Summary of Interest Payable Activity [Abstract] | ||||
Beginning Balance | $ 5,364,997 | $ 4,836,127 | $ 4,307,256 | $ 3,629,913 |
Interest incurred on promissory notes payable | 265,834 | 528,870 | 528,871 | 504,873 |
Transfer from implicit interest to interest payable on promissory note | 172,470 | |||
Ending Balance | $ 5,630,831 | $ 5,364,997 | $ 4,836,127 | $ 4,307,256 |
Interest, advances and promis_4
Interest, advances and promissory notes payable (Details) - Interest Payable - USD ($) | Jun. 30, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Interest Payable [Abstract] | |||||
Relatives of directors | $ 3,035,643 | $ 2,876,280 | $ 2,554,655 | $ 2,255,529 | |
Non-related parties | 2,595,188 | 2,488,717 | 2,281,472 | 2,051,727 | |
Total | $ 5,630,831 | $ 5,364,997 | $ 4,836,127 | $ 4,307,256 | $ 3,629,913 |
Lines of Credit (Details)
Lines of Credit (Details) - USD ($) | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Borrowing Limit | $ 12,200,673 | $ 12,300,000 | $ 10,500,000 | $ 10,500,000 |
Principal Borrowed | 12,200,673 | 11,757,325 | 11,024,235 | 10,398,249 |
Accrued Interest | 8,271,437 | 7,553,382 | 6,237,415 | 4,949,593 |
Total Outstanding | $ 20,472,110 | $ 19,310,707 | $ 17,261,650 | $ 15,347,842 |
Chairman and CEO | ||||
Interest Rate | 1.00% | 1.00% | 1.00% | 1.00% |
Borrowing Limit | $ 10,300,000 | $ 10,300,000 | $ 8,500,000 | $ 8,500,000 |
Repayment Terms | Due on Demand | Due on Demand | Due on Demand | Due on Demand |
Principal Borrowed | $ 10,200,673 | $ 9,757,325 | $ 9,024,235 | $ 8,398,249 |
Accrued Interest | 6,175,119 | 5,576,997 | 4,501,030 | 3,453,208 |
Total Outstanding | $ 16,375,792 | $ 15,334,322 | $ 13,525,265 | $ 11,851,457 |
Security | General Security over Assets | General Security over Assets | General Security over Assets | General Security over Assets |
Purpose | General Corporate Requirements | General Corporate Requirements | General Corporate Requirements | General Corporate Requirements |
Wife of Chairman | ||||
Interest Rate | 1.00% | 1.00% | 1.00% | 1.00% |
Borrowing Limit | $ 2,000,000 | $ 2,000,000 | $ 2,000,000 | $ 2,000,000 |
Repayment Terms | Due on Demand | Due on Demand | Due on Demand | Due on Demand |
Principal Borrowed | $ 2,000,000 | $ 2,000,000 | $ 2,000,000 | $ 2,000,000 |
Accrued Interest | 2,096,318 | 1,976,385 | 1,736,385 | 1,496,385 |
Total Outstanding | $ 4,096,318 | $ 3,976,385 | $ 3,736,385 | $ 3,496,385 |
Security | General Security over Assets | General Security over Assets | General Security over Assets | General Security over Assets |
Purpose | General Corporate Requirements | General Corporate Requirements | General Corporate Requirements | General Corporate Requirements |
Additional paid in capital - Su
Additional paid in capital - Summary of Stock Option Activity (Details) - $ / shares | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Summary of Stock Option Activity [Abstract] | ||||
Outstanding, beginning of period | 5,236,401,500 | 5,014,851,500 | 4,963,851,500 | 4,962,301,500 |
Average Exercise Price, beginning | $ 0.003 | $ 0.002 | $ 0.002 | $ 0.013 |
Granted | 30,500,000 | 254,050,000 | 52,500,000 | 6,500,000 |
Granted, per share | $ 0.035 | $ 0.028 | $ .015 | $ 0.002 |
Exercised | (26,000,000) | |||
Exercised per share | $ (0.003) | |||
Cancelled | (13,500,000) | (6,500,000) | (1,500,000) | (4,950,000) |
Cancelled per share | $ (0.034) | $ (0.015) | $ (0.015) | $ (0.061) |
Outstanding, end of period | 5,253,401,500 | 5,236,401,500 | 5,014,851,500 | 4,963,851,500 |
Average Exercise price, ending | $ 0.004 | $ 0.003 | $ 0.002 | $ 0.002 |
Exercisable, end of period | 5,162,401,500 | 5,154,901,500 | 4,987,851,500 | 4,958,201,500 |
Exercisable, end of period | $ 0.004 | $ 0.003 | $ 0.002 | $ 0.002 |
Additional paid in capital - Op
Additional paid in capital - Options Outstanding (Details) - $ / shares | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Options Outstanding [Abstract] | |||||
Options Outstanding | 5,253,401,500 | 5,236,401,500 | 5,014,851,500 | 4,963,851,500 | 4,962,301,500 |
Exercise Price | $ 0.004 | $ 0.003 | $ 0.002 | $ 0.002 | |
Weighted Average Remaining Contractual Life | 1 year 5 months 23 days | 1 year 11 months 15 days | 2 years 4 months 24 days | 3 years 4 months 17 days |
Additional paid in capital - Fa
Additional paid in capital - Fair Value of Stock Options (Details) - USD ($) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | Dec. 30, 2018 | Dec. 31, 2017 | |
Fair Value of Stock Options [Abstract] | |||||||
Interest expense | $ 1,085,371 | $ 1,085,371 | $ 3,243,812 | ||||
Product development | 18,725 | 1,047,981 | 18,804 | 1,048,318 | 1,243,644 | 186,476 | 66,800 |
Professional expense | 391,843 | 193,485 | 391,843 | 392,677 | 392,677 | 401,151 | 52,492 |
General, selling and administration | 541,209 | 805,865 | 1,244,636 | 993,716 | 80,938 | ||
Total | $ 410,568 | $ 2,868,046 | $ 410,647 | $ 3,332,231 | $ 6,124,769 | $ 1,581,343 | $ 200,230 |
Additional paid in capital - _2
Additional paid in capital - Fair Value Method Stock-Based Compensation (Details) - USD ($) $ / shares in Units, $ in Thousands | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Fair Value Method Stock-Based Compensation [Abstract] | ||||
Risk-free interest rate | 0.38% | 1.84% | 2.52% | 2.34% |
Expected life | 4 years 10 months 25 days | 5 years | 5 years | 5 years |
Expected dividends | $ 0 | $ 0 | $ 0 | $ 0 |
Expected volatility | 320.00% | 306.00% | 309.00% | 330.00% |
Forfeiture rate | $ 0 | $ 0 | $ 0 | $ 0 |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Related party transaction included within interest expense: | |||||||
Interest expenses on promissory notes issued to relatives of the Chairman & Chief Executive Officer of the Company | $ 79,171 | $ 74,780 | $ 157,963 | $ 149,562 | $ 321,626 | $ 299,126 | $ 299,125 |
Interest expense on lines of credit payable to the Chairman & Chief Executive Officer of the Company and his spouse | 363,001 | 338,895 | 719,455 | 672,145 | 1,365,967 | 1,287,822 | 1,202,250 |
Interest expense related to the modification of stock options held by the Chairman and Chief Executive Officer of the Company and his spouse related to financing provided | 1,085,371 | 1,085,371 | 1,085,371 | ||||
Stock based compensation related to stock options granted to the Chairman and Chief Executive Officer for increasing the borrowing limit on the line of credit available to the Company | 2,158,441 | ||||||
Related party transactions including within selling, general and administration expenses: | |||||||
Consulting fees to the Chairman & Chief Executive Officer of the Company accrued on the line of credit available to the Company | 62,400 | 47,400 | 124,800 | 94,800 | 189,600 | 189,600 | 189,600 |
Stock options granted to four members of the Board of Directors of the Company | 505,832 | 770,421 | 770,421 | 70,489 | |||
Selling, general and administration expense related to the modification of stock options to three members of the Board of Directors | 799,625 | 799,625 | 29,204 | ||||
Related party transactions included within product development expenses | |||||||
Consulting fees to a relative of the Chairman and Chief Executive Officer of the Company | $ 30,000 | $ 60,000 | $ 60,000 | $ 60,000 | $ 120,000 |
Income taxes_ (Details) - Provi
Income taxes: (Details) - Provision for Income Taxes - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Provision for Income Taxes [Abstract] | |||
Computed expected benefit of income taxes | $ (1,891,163) | $ (865,648) | $ (966,289) |
Stock-based compensation | 1,286,201 | 332,082 | 68,037 |
Non-deductible interest expense | 25,722 | 25,658 | 52,648 |
Impact of change in tax rate | 5,163,267 | 0 | |
Expiry of tax credits | 18,486 | ||
True up of prior year balances | 37,917 | ||
Increase (decrease) in valuation allowance | 522,837 | (4,655,359) | 845,604 |
Income tax provision | $ 0 |
Income taxes_ (Details) - Net D
Income taxes: (Details) - Net Deferred Income Tax Asset - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Net Deferred Income Tax Asset [Abstract] | |||
Net operating loss carried forward | $ 44,625,741 | $ 42,136,043 | $ 39,717,436 |
Tax rate | 21.00% | 21.00% | 34.00% |
Deferred income tax assets | $ 9,371,406 | $ 8,848,569 | $ 13,503,928 |
Valuation allowance | (9,371,406) | (8,848,569) | (13,503,928) |
Net deferred income tax asset | $ 0 | $ 0 | $ 0 |
Income taxes_ (Details) - Summa
Income taxes: (Details) - Summary of Operating Loss Carryforwards - USD ($) | Dec. 31, 2039 | Dec. 31, 2038 | Dec. 31, 2037 | Dec. 31, 2036 | Dec. 31, 2035 | Dec. 31, 2034 | Dec. 31, 2033 | Dec. 31, 2032 | Dec. 31, 2031 | Dec. 31, 2030 | Dec. 31, 2029 | Dec. 31, 2028 | Dec. 31, 2027 | Dec. 31, 2026 | Dec. 31, 2025 | Dec. 31, 2024 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Summary of Operating Loss Carryforwards [Abstract] | |||||||||||||||||||||
Opearting Loss Carryforward | $ 2,758,280 | $ 2,238,048 | $ 2,487,072 | $ 2,471,978 | $ 2,761,513 | $ 2,855,631 | $ 2,568,328 | $ 1,638,421 | $ 1,746,615 | $ 822,678 | $ 1,723,146 | $ 1,599,919 | $ 1,479,818 | $ 1,532,322 | $ 1,304,283 | $ 1,250,783 | $ 2,775,900 | $ 2,503,951 | $ 3,681,189 | $ 4,425,866 | $ 88,022 |