| SIGNIFICANT ACCOUNTING POLICIES | NOTE 4. SIGNIFICANT ACCOUNTING POLICIES The accounting policies set out below have been applied consistently to
all periods presented in these consolidated financial statements, which have, in management's opinion, been properly prepared within reasonable
limits of materiality and within the framework of the significant accounting policies summarized below: Financial Instruments i) Financial Assets Classification Upon the initial recognition of financial assets, the financial assets
are classified as one of the following measurement methodologies: (a) amortized cost, (b) fair value through other comprehensive income
(“FVTOCI”), or (c) fair value through profit or loss (“FVTPL”). Subsequent measurement will be based on
the initial classification of the financial assets. The classification of a financial asset at initial recognition depends
on the Company's business model for managing the financial asset and the financial asset's contractual cash flow characteristics. In order for a financial asset to be measured at amortized cost or fair
value through other comprehensive income (“OCI”), it needs to give rise to cash flows that are solely payments of principal
and interest (“SPPI”) on the principal amount outstanding. This assessment is referred to as the SPPI test and is performed
at an instrument level. The Company's business model for managing financial assets refers to how
it manages its financial assets in order to generate cash flows. The business model determines whether cash flows will result from collecting
contractual cash flows, selling the financial assets, or both. Measurement For purposes of subsequent measurement, financial assets are classified
in three categories:
· Financial assets at amortized cost (debt instruments);
· Financial assets at FVTOCI (equity instruments); and
· Financial assets at FVTPL. Financial Assets at Amortized Cost (Debt Instruments) The Company measures financial assets at amortized cost if both of the
following conditions are met:
· The financial asset is held within a business model with the objective of holding the financial asset in order to collect contractual
cash flows; and
· The contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and
interest on the principal amount outstanding. Financial assets at amortized cost are subsequently measured using the
effective interest rate method and are subject to a period impairment review. Gains and losses are recognized in profit or loss when the
asset is derecognized, modified or impaired. The Company's financial assets classified at amortized cost includes other
receivables. Financial Assets designated at Fair Value through OCI (Equity Instruments) Upon initial recognition, the Company can elect to classify irrevocably
its equity investments as equity instruments designated at FVTOCI when they meet the definition of equity under IAS 32, “Financial
Instruments: Presentation,” and are not held for trading. The classification is determined on an instrument-by-instrument basis. Gains and losses on these financial assets are never recycled to profit
or loss. Dividends are recognized as other income in the statement of profit or loss when the right of payment has been established, except
when the Company benefits from such proceeds as a recovery of part of the cost of the financial asset, in which case, such gains are recorded
in OCI. Equity instruments designated at fair value through OCI are not subject to impairment assessment. The Company irrevocably elected to classify its investment in Intensity
as FVTOCI. Financial Assets at Fair Value through Profit or Loss Financial assets at FVTPL include financial assets held for trading, financial
assets designated upon initial recognition at fair value through profit or loss, or financial assets mandatorily required to be measured
at fair value. Financial assets are classified as held for trading if they are acquired for the purpose of selling or repurchasing in
the near term. Derivatives, including separated embedded derivatives, are also classified as held for trading unless they are designated
as effective hedging instruments. Financial assets with cash flows that are not solely payments of principal and interest are classified
and measured FVTPL, irrespective of the business model. Financial assets at fair value through profit or loss are carried in the
consolidated statements of financial position at fair value with net changes in fair value recognized in the statement of profit or loss.
The investment in associate (Stimunity) and the Stimunity Convertible Note receivable are accounted for as FVTPL. ii Financial Liabilities The Company’s financial liabilities include accounts payable and
accrued liabilities, which approximate fair value due to their short maturity, lease liability, warrant liability, deferred purchase price
payable and deferred obligation. Warrant Liability In connection with the SalvaRx Acquisition, the Company acquired notes
payable and associated warrants, which were recorded at fair value on the date of the acquisition. 33,888 On September 29, 2023, the Company entered into a securities purchase
agreement (the “Purchase Agreement”) with an institutional and accredited investor in connection with a registered direct
offering (the “Registered Direct Offering”) and a concurrent private placement (the “Private Placement,” and together
with the Registered Direct Offering, the “Offerings”). The Offerings closed on October 3, 2023. Pursuant to the Purchase Agreement, in the Registered Direct Offering,
the Company sold (i) 1,970,000 shares of the Company’s ordinary shares at a purchase price of $1.90 per share and (ii) pre-funded
warrants (the “Pre-Funded Warrants”) to purchase up to 1,187,895 ordinary shares, at a purchase price of $1.899 per Pre-Funded
Warrant. All Pre-Funded Warrants, which were immediately exercisable for one ordinary share at an exercise price of $0.001 per share,
were exercised in full on May 29, 2024. In the Private Placement, the Company issued to such institutional and
accredited investor unregistered warrants to purchase up to 3,157,895 3,157,895 3,157,895 9,473,685 1.90 18 2.26 2.26 5.3 The Company filed the Resale Registration Statement (as defined below)
to register for the resale of the Private Warrant Shares and the ordinary shares issuable upon the exercise of the Placement Agent Warrants,
which was declared effective by the SEC on November 7, 2023. Pursuant to the terms of the Purchase Agreement, the Company is obligated
to use its commercially reasonable efforts to keep the Resale Registration Statement effective at all times until such institutional and
accredited investor (and its successors and assigns) no longer owns any Private Warrants or ordinary shares issuable upon exercise thereof. Series B Warrants, Series C Warrants and Placement Agent Warrants The Company accounts for the Series B Warrants, the Series C Warrants
and the Placement Agent Warrants (defined below) under IAS 9, “Financial Instruments” and IAS 32, “Financial Instruments:
Presentation”. An equity instrument is any contract that evidences a residual interest
in the assets of an entity after deducting all of its liabilities. The Series B Warrants, the Series C Warrants and the Placement Agent Warrants
(defined below) include the obligation, in the event of a Fundamental Transaction, as defined in such warrants, for the Company or the
successor entity to purchase the warrants from the holder at the discretion of the holder and at the Black-Scholes value, as defined in
the warrant agreements. As a result, management concluded that such warrants met the criteria of paragraphs 16A and 16B of IAS 32 and
should be reflected as a liability on the consolidated statement of financial position with the changes in fair value recognized in the
consolidated statement of operations and other comprehensive income (loss). Series A Warrants and Pre-Funded Warrants The Series A Warrants and the Pre-Funded Warrants are classified as a
component of equity because they are freestanding financial instruments that are legally detachable and separately exercisable from the
ordinary shares with which they were issued, are immediately exercisable, do not embody an obligation for the Company to repurchase such
warrants, and permit the holders to receive a fixed number of ordinary shares upon exercise. In addition, the Series A Warrants and the
Pre-Funded Warrants do not provide any guarantee of value or return. See Note 15, “Capital Stock and Reserves,” for a further
discussion. Impairment of Financial Assets and Intangible Assets IFRS 9, “Financial Instruments,” requires the Company to recognize
an allowance for expected credit losses ("ECLs") for all debt instruments and investments not held at fair value through profit
or loss and contract assets. For intangible assets, at the end of each reporting period and whenever there is an indication that
the intangible asset may be impaired, the Company reviews the carrying amounts of its intangible assets to determine whether there is
any indication that those assets have suffered an impairment loss. At the end of each reporting period, the Company assesses whether there
was objective evidence that a financial asset was impaired. The Company recognizes an allowance for ECLs for all debt instruments not
held at fair value through profit or loss. ECLs are based on the difference between the contractual cash flows due in accordance with
the contract and all the cash flows that the Company expects to receive, discounted at an approximation of the original effective interest
rate. The expected cash flows will include cash flows from the sale of collateral held or other credit enhancements that are integral
to the contractual terms. ECLs are recognized in two stages. For credit exposures for which there
has not been a significant increase in credit risk since initial recognition, ECLs are provided for credit losses that result from default
events that are possible within the next 12-months (a 12-month ECL). For those credit exposures for which there has been a significant
increase in credit risk since initial recognition, a loss allowance is required for credit losses expected over the remaining life of
the exposure, irrespective of the timing of the default (a lifetime ECL). Foreign Currencies The functional and presentation currency of the Company and its subsidiaries
(see Note 3, “Basis of Presentation”) is the U.S. dollar. Monetary assets and liabilities are translated at exchange rates
in effect at the consolidated statement of financial position date. Non-monetary assets are translated at exchange rates in effect when
they were acquired. Revenue and expenses are translated at the approximate average rate of exchange for the period. Foreign currency differences
arising on retranslation are recognized in income or loss. The effect of exchange rates on the Company’s foreign currency-denominated
asset and liability balances are recorded as foreign currency transaction losses in the determination of net income (loss). Cash and Cash Equivalents Cash and cash equivalents comprise cash on hand and amounts invested
in underlying Treasury and money market funds that are readily convertible to a known amount of cash with three months or less from date
of acquisition and are subject to an insignificant risk of change in value. As of March 31,
2024 and 2023, cash equivalents was comprised of a money market account with maturities less than 90 days from the date of purchase.
Interest income earned on such investments totaled $ 0.274
million, $ 0.217
million and nil 0
in the years ended March 31, 2024, 2023 and 2022, respectively. Intangible Assets acquired in Business Combinations Intangible assets acquired in business combinations that are separable
from goodwill are recorded at their acquisition date fair value. Subsequent to initial recognition, intangible assets acquired in
business combinations are reported net of accumulated amortization and any impairment losses. Impairment of Indefinite Life Intangible Assets other than Goodwill At the end of each annual reporting period and whenever there is an indication
that an indefinite life intangible asset may be impaired, the Company reviews the carrying amounts of such intangible assets to determine
whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount
of the asset is estimated to determine the extent of impairment loss (if any). When it is not possible to estimate the recoverable amount
of any individual asset, the Company estimates the recoverable amount of the cash-generating unit to which the asset belongs. When a reasonable
and consistent basis of allocation can be identified, corporate assets are also allocated to individual cash-generating units ("CGU"
or "CGUs"), or the smallest group of cash-generating units for which a reasonable and consistent allocation basis can be identified. Recoverable amount is the higher of fair value less costs of disposal
and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount
rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of
future cash flows have not been adjusted. Share-based Payments The Company determines the fair value of share-based payments granted
to directors, officers, employees and consultants using the Black-Scholes option-pricing model at the grant date. Assumptions for the
Black-Scholes model are determined as follows:
· Expected Volatility.
· Expected Term.
· Risk-free Interest Rate.
· Expected Dividend Yield. Share-based payments to employees, officers and directors are recorded
and reflected as an expense over the vesting period with a corresponding increase in the stock option reserve. On exercise, the associated
amounts previously recorded in the stock option reserve are transferred to common share capital. Loss Per Share Basic loss per share is calculated by dividing net loss (the numerator)
by the weighted average number of ordinary shares outstanding (the denominator) during the period. Diluted loss per share reflects
the dilution that would occur if outstanding stock options and share purchase warrants were exercised into ordinary shares using the treasury
stock method and convertible debt instruments were converted into ordinary shares using the if-converted method. Diluted loss per share
is calculated by dividing net loss applicable to ordinary shares by the sum of the weighted average number of ordinary shares outstanding
and all additional ordinary shares that would have been outstanding if potentially dilutive common shares had been issued. The share and
per share information has been retroactively adjusted to reflect the impact of the stock dividend. The inclusion of the Company's stock options, restricted stock units and
share purchase warrants in the computation of diluted loss per share would have an anti-dilutive effect on loss per share and are therefore
excluded from the computation. Consequently, there is no difference between basic loss per share and diluted loss per share for the years
ended March 31, 2024, 2023 and 2022. The following table reflects the outstanding securities by year that would have an anti-dilutive
effect on loss per share, and accordingly, were excluded from the calculation (see Note 17, “Loss Per Share”).
Schedule of anti-dilutive effect on loss per share
As of March 31,
2024 2023 2022
Warrants 9,631,580 — 33,888
Stock options 1,805,620 1,963,420 1,151,400
Restricted stock units 369,340 378,740 378,740 Investment in Public Company The investment is comprised of shares of private/public companies that
have been acquired through a private placement. The investment is initially recorded at fair value. Following acquisition, the Company
evaluates whether control or significant influence is exerted by the Company over the affairs of the investee company. Based on the evaluation,
the Company accounts for the investment using either the consolidation, equity accounting or fair value method (see Note 7, “Investment
in Public Company”). The Company sold the entire investment in Fiscal 2024. Investment in Associate An associate is an entity over which the Company has significant influence.
Significant influence is the power to participate in the financial and operating policy decisions of the investee but is not control
or joint control over those policies. The investment in associate was written down to nil 0 The results and assets and liabilities of associates are incorporated
in these consolidated financial statements using the equity method of accounting, except when the investment, or a portion thereof, is
classified as held for sale, in which case it is accounted for in accordance with IFRS 5, “Non-current Assets Held for Sale and
Discontinued Operations”. Under the equity method, an investment in an associate is initially recognized in the consolidated statement
of financial position at cost from the date the investee becomes an associate and adjusted thereafter to recognize the Company's share
of the profit or loss and other comprehensive income of the associate. When the Company's share of losses of an associate exceed the Company's
interest in that associate (which includes any long-term interests that, in substance, form part of the Company's net investment in the
associate), the Company discontinues recognizing its share of further losses. Additional losses are recognized only to the extent that
the Company has incurred legal or constructive obligations or made payments on behalf of the associate. After application of the equity method, the Company determines whether
it is necessary to recognize an impairment loss on its investment in its associate. At each reporting date, the Company determines whether
there is objective evidence that the investment in the associate is impaired. If there is such evidence, the Company calculates the amount
of impairment as the difference between the recoverable amount of the associate and its carrying value, and then recognizes the loss within
'share of (loss) income in associate' in the consolidated statements of operations. Research and Development Expenses (i) Research and Development Expenditure on research activities, undertaken with the prospect of gaining
new scientific or technical knowledge and understanding, is expensed as incurred. Development activities involve a plan or design for the production of
new or substantially improved products and processes. Development expenditures are capitalized only if development costs can be measured
reliably, the product or process is technically, and commercially feasible, future economic benefits are probable, and the Company intends
to and has sufficient resources to complete development and to use or sell the asset. Following initial recognition of the development
expenditure as an asset, the asset is carried at cost less any accumulated amortization. Amortization of the asset begins when development
is complete and the asset is available for use. It is amortized over the period of expected future benefit. During the period of development,
the asset is tested for impairment annually. Research and development expenses include all direct and indirect operating
expenses supporting the products in development. (ii) Subsequent Expenditure Subsequent expenditure is capitalized only when it increases the future
economic benefits embodied in the specific asset to which it relates. All other expenditures are recognized in income or loss as incurred. (iii) Clinical Trial Expenses Clinical trial expenses are a component of the Company's research and
development costs. These expenses include fees paid to contract research organizations, clinical sites, and other organizations who conduct
development activities on the Company's behalf. The amount of clinical trial expenses recognized in a period related to clinical agreements
is based on estimates of the work performed using an accrual basis of accounting. These estimates incorporate factors such as patient
enrolment, services provided, contractual terms, and prior experience with similar contracts. Contingent Liability A contingent liability is a possible obligation that arises from past
events and of which the existence will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not
within the control of the Corporation; or a present obligation that arises from past events (and therefore exists), but is not recognized
because it is not probable that a transfer or use of assets, provision of services or any other transfer of economic benefits will be
required to settle the obligation; or the amount of the obligation cannot be estimated reliably. Determination of Fair Value A number of the Company's accounting policies and disclosures required
the determination of fair value, both for financial and non-financial assets and liabilities. Fair values have been determined for measurement
and/or disclosure purposes based on assumptions that market participants would use when pricing the asset or liability, assuming that
market participants act in their economic best interest. When applicable, further information about the assumptions made in determining
fair values is disclosed in Note 20, “Financial Instruments and Risk Management” and other footnotes that specifically relate
to assets or liabilities measured at fair value. Income Tax The Company uses the asset and liability method to account for income
taxes. Deferred income tax assets and liabilities are recognized for the future tax consequences attributable to differences between the
carrying amounts of existing assets and liabilities for accounting purposes, and their respective tax bases. Deferred income tax assets and liabilities are measured using tax rates
that have been enacted or substantively enacted and applied 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 statutory tax rates is recognized
in profit or loss in the year of change. Deferred income tax assets are recorded when their recoverability is considered probable and
are reviewed at the end of each reporting period. Business Combinations Business combinations are accounted for using the acquisition method as
of the date when control transfers to the Company. The total purchase price less the fair value of non-controlling interest is allocated
to the acquired net tangible and intangible assets and liabilities assumed at fair value. Transaction costs that the Company incurs in connection with a business
combination are expensed as incurred. Goodwill Goodwill represents the excess of the purchase price paid for the acquisition
of an entity and the amount recognized for non-controlling interests over the fair value of the net identifiable assets acquired and liabilities
assumed. Goodwill is allocated to the CGUs, which are expected to benefit from the synergies of the combination. Goodwill is not subject
to amortization and is tested annually for impairment, or more frequently if events or changes in circumstances indicate that they might
be impaired. Impairment is determined for goodwill by assessing if the carrying value
of a CGU, including the allocated goodwill, exceeds its recoverable amount determined as the greater of the estimated fair value less
costs to sell and the value in use. Impairment losses recognized in respect of a CGU are first allocated to the carrying value of goodwill
and any excess is allocated to the carrying amount of assets in the CGU. Any goodwill impairment is recorded in income in the period in
which the impairment is identified. Impairment losses on goodwill are not subsequently reversed. Recent Accounting Pronouncements IFRS Pronouncements Issued Impact of Adoption of Significant New IFRS Standards in Fiscal 2024
(a) Annual Improvements to IFRS Standards 2018-2020 The annual improvements process addresses issues in the 2018-2020 reporting
cycles including changes to IFRS 9, “Financial Instruments,” IFRS 1, “First Time Adoption of IFRS,” IFRS 16, “Leases,”
and IAS 41, “Biological Assets”.
i) The amendment to IFRS 9 addresses which fees should be included in the 10% test for derecognition of financial liabilities.
ii) The amendment to IFRS 1 allows a subsidiary adopting IFRS at a later date than its parent to also measure cumulative translation differences
using the amounts reported by the parent based on the parent’s date of transition to IFRS.
iii) The amendment to IFRS 16’s illustrative example 13 removes the illustration of payments from the lessor related to leasehold
improvements. These amendments were effective for annual periods beginning on or after
January 1, 2022. The adoption of these amendments did not have a material effect on the Company’s annual consolidated financial
statements. New Accounting Standards, Interpretations and Amendments Standards issued but not yet effective up to the date of issuance of the
Company’s consolidated financial statements are listed below. This listing is of standards and interpretations issued, which the
Company reasonably expects to be applicable at a future date. The Company intends to adopt those standards when they become effective.
(a) IAS 1: Presentation of Financial Statements The amendment to IAS 1 clarifies how to classify debt and other liabilities
as either current or non-current. The amendment is effective for annual periods beginning on or after January 1, 2024. The Company is
currently evaluating the new guidance and impacts on its consolidated financial statements.
(b) Amendments to IFRS 10 and IAS 28: Sale or Contribution of Assets between an Investor and Its Associate or Joint Venture The amendment addresses the conflict between IFRS 10, “Consolidated
Financial Statements,” and IAS 28, “Investments in Associates and Joint Ventures,” in dealing with the loss of control
of a subsidiary that is sold or contributed to an associate or joint venture. The amendments clarify that the gain or loss resulting from
the sale or contribution of assets that constitute a business, as defined in IFRS 3, “Business Combinations,” between an investor
and its associate or joint venture, is recognized in full. Any gain or loss resulting from the sale or contribution of assets that do
not constitute a business, however, is recognized only to the extent of unrelated investors’ interests in the associate or joint
venture. The IASB has deferred the effective date of these amendments indefinitely, but an entity that early adopts the amendments must
apply them prospectively. The Company is evaluating whether the adoption of the above amendment will have a material impact on its consolidated
financial statements. |
