IntelGenx Technologies (IGXT) 10-Q 3 Nov 15 2015 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2015	Nov. 02, 2015
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Sep. 30, 2015
Trading Symbol	igxt
Entity Registrant Name	IntelGenx Technologies Corp.
Entity Central Index Key	1,098,880
Current Fiscal Year End Date	--12-31
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		63,615,256
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Well Known Seasoned Issuer	No
Document Fiscal Year Focus	2,015
Document Fiscal Period Focus	Q3

Consolidated Balance Sheet

Consolidated Balance Sheet - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Current
Cash and cash equivalents	$ 2,264	$ 4,399
Accounts receivable	878	652
Prepaid expenses	74	96
Investment tax credits receivable	67	108
Total Current Assets	3,283	5,255
Leasehold Improvements and Equipment, net	3,576	983
Intangible Assets	6	46
Security Deposit	225	0
Total Assets	7,090	6,284
Current
Accounts payable and accrued liabilities	1,340	466
Current portion of term loan	74	0
Deferred license revenue	76	1,245
Total Current Liabilities	1,490	1,711
Term Loan	294	0
Total Liabilities	1,784	1,711
Shareholders' Equity
Capital Stock	1	1
Additional Paid-in-Capital	22,821	22,654
Accumulated Deficit	(16,824)	(17,848)
Accumulated Other Comprehensive Loss	(692)	(234)
Total Shareholders' Equity	5,306	4,573
Total Liabilities and Stockholdrs Equity	$ 7,090	$ 6,284

Consolidated Statement of Share

Consolidated Statement of Shareholders' Equity - 9 months ended Sep. 30, 2015 - USD ($) $ in Thousands	Capital Stock [Member]	Additional Paid-In Capital [Member]	Accumulated Deficit [Member]	Accumulated Other Comprehensive Loss [Member]	Total
Beginning Balance at Dec. 31, 2014	$ 1	$ 22,654	$ (17,848)	$ (234)	$ 4,573
Beginning Balance (Shares) at Dec. 31, 2014	63,465,255
Foreign currency translation adjustment				(458)	(458)
Options exercised		62			62
Options exercised (Shares)	150,000
Stock-based compensation		105			105
Net loss for the period			1,024		1,024
Ending Balance at Sep. 30, 2015	$ 1	$ 22,821	$ (16,824)	$ (692)	$ 5,306
Ending Balance (Shares) at Sep. 30, 2015	63,615,255

Consolidated Statement of Compr

Consolidated Statement of Comprehensive Income - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Revenues
Royalties	$ 248	$ 129	$ 674	$ 310
License and other revenue	2,135	323	2,919	524
Total Revenues	2,383	452	3,593	834
Expenses
Cost of royalty and license revenue	189	0	292	0
Research and development expense	274	359	643	772
Selling, general and administrative expense	553	521	1,505	1,524
Depreciation of tangible assets	6	11	19	25
Amortization of intangible assets	10	6	29	26
Total Expenses	1,032	897	2,488	2,347
Operating income (loss)	1,351	(445)	1,105	(1,513)
Interest income	7	11	20	23
Financing and Interest expense	(6)	0	(101)	0
Net Income (Loss)	1,352	(434)	1,024	(1,490)
Other Comprehensive Loss
Foreign currency translation adjustment	(195)	(256)	(458)	(326)
Comprehensive Income (Loss)	$ 1,157	$ (690)	$ 566	$ (1,816)
Basic Weighted Average Number of Shares Outstanding	63,589,984	63,465,255	63,606,739	63,133,545
Basic Earnings (Loss) Per Common Share	$ 0.02	$ (0.01)	$ 0.01	$ (0.03)
Diluted Weighted Average Number of Shares Outstanding	64,030,092	63,465,255	71,725,902	63,133,545
Diluted Earnings (Loss) Per Common Share	$ 0.02	$ (0.01)	$ 0.01	$ (0.03)

Consolidated Statement of Cash

Consolidated Statement of Cash Flows - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Funds Provided (Used) - Operating Activities
Net income (loss)	$ 1,352	$ (434)	$ 1,024	$ (1,490)
Amortization and depreciation	16	17	48	51
Stock-based compensation	25	17	105	82
Total Adjustments	1,393	(400)	1,177	(1,357)
Changes in assets and liabilities:
Accounts receivable	(763)	1	(226)	92
Prepaid expenses	1	18	22	58
Investment tax credits receivable	(19)	(17)	41	34
Security deposit	15	0	(225)	0
Accounts payable and accrued liabilities	736	1	874	(326)
Deferred revenue	(390)	(77)	(1,169)	(180)
Net change in assets and liabilities	(420)	(74)	(683)	(322)
Net cash provided (used) by operating activities	973	(474)	494	(1,679)
Financing Activities
Issuance of term loans	0	0	394	0
Repayment of term loans	(6)	0	(6)	0
Proceeds from exercise of warrants and stock options	28	0	62	1,619
Net cash provided by financing activities	22	0	450	1,619
Investing Activities
Additions to property and equipment	(1,221)	(106)	(2,646)	(274)
Net cash used in investing activities	(1,221)	(106)	(2,646)	(274)
Decrease in Cash and Cash Equivalents	(226)	(580)	(1,702)	(334)
Effect of Foreign Exchange on Cash and Cash Equivalents	(173)	(222)	(433)	(295)
Cash and Cash Equivalents
Beginning of Period	2,663	5,178	4,399	5,005
End of Period	$ 2,264	$ 4,376	$ 2,264	$ 4,376

Basis of Presentation

Basis of Presentation	9 Months Ended
	Sep. 30, 2015
Basis of Presentation [Text Block]	1. Basis of Presentation The accompanying unaudited consolidated financial statements have been prepared in accordance with generally accepted accounting principles for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete consolidated financial statements. In the opinion of management, all adjustments considered necessary for a fair presentation have been included. All such adjustments are of a normal and recurring nature. These financial statements should be read in conjunction with the audited consolidated financial statements at December 31, 2014. Operating results for the three months and nine months ended September 30, 2015 are not necessarily indicative of the results that may be expected for the year ending December 31, 2015. The Company prepares its financial statements in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”). This basis of accounting involves the application of accrual accounting and consequently, revenues and gains are recognized when earned, and expenses and losses are recognized when incurred. The consolidated financial statements include the accounts of the Company and its subsidiary companies. On consolidation, all inter-entity transactions and balances have been eliminated. The financial statements are expressed in U.S. funds. Management has performed an evaluation of the Company’s activities through the date and time these financial statements were issued and concluded that there are no additional significant events requiring recognition or disclosure.

Adoption of New Accounting Stan

Adoption of New Accounting Standards	9 Months Ended
	Sep. 30, 2015
Adoption of New Accounting Standards [Text Block]	2. Adoption of New Accounting Standards The FASB issued ASU No. 2014-08 which enhances convergence between U.S. GAAP and International Financial Reporting Standards (IFRS). The amendments in the ASU change the criteria for reporting discontinued operations while enhancing disclosures in this area. It also addresses sources of confusion and inconsistent application related to financial reporting of discontinued operations guidance in U.S. GAAP. Under the new guidance, only disposals representing a strategic shift in operations should be presented as discontinued operations. Those strategic shifts should have a major effect on the organization’s operations and financial results. Examples include a disposal of a major geographic area, a major line of business, or a major equity method investment. In addition, the new guidance requires expands disclosures about discontinued operations that will provide financial statement users with more information about the assets, liabilities, income, and expenses of discontinued operations. The amendments in the ASU were effective in the first quarter of 2015 for public organizations with calendar year ends. The adoption of this Statement did not have a material effect on the Company`s financial position or results of operations.

Significant Accounting Policies

Significant Accounting Policies	9 Months Ended
	Sep. 30, 2015
Significant Accounting Policies [Text Block]	3. Significant Accounting Policies Recently Issued Accounting Pronouncements ASU 2015-16, Business Combinations (Topic 805): Simplifying the Accounting for Measurement-Period Adjustments The FASB issued this Update which requires that an acquirer recognize adjustments to provisional amounts that are identified during the measurement period in the reporting period in which the adjustment amounts are determined. The amendments in this Update require that the acquirer record, in the same period’s financial statements, the effect on earnings of changes in depreciation, amortization, or other income effects, if any, as a result of the change to the provisional amounts, calculated as if the accounting had been completed at the acquisition date. The amendments in this Update require an entity to present separately on the face of the income statement or disclose in the notes the portion of the amount recorded in current-period earnings by line item that would have been recorded in previous reporting periods if the adjustment to the provisional amounts had been recognized as of the acquisition date. The amendments in this Update apply to all entities that have reported provisional amounts for items in a business combination for which the accounting is incomplete by the end of the reporting period in which the combination occurs and during the measurement period have an adjustment to provisional amounts recognized. For public business entities, the amendments in this Update are effective for fiscal years beginning after December 15, 2015, including interim periods within those fiscal years. The amendments in this Update should be applied prospectively to adjustments to provisional amounts that occur after the effective date of this Update with earlier application permitted for financial statements that have not yet been issued. For all other entities, the amendments in this Update are effective for fiscal years beginning after December 15, 2016, and interim periods within fiscal years beginning after December 15, 2017. The adoption of this Statement is not expected to have a material effect on the Company`s financial position or results of operations. ASU 2015-14, Revenue From Contracts With Customers (Topic 606), Deferral of the Effective Date The FASB and IASB have deferred the effective date of following amendment for all entities by one year. The FASB and IASB (the Boards) have issued converged standards on revenue recognition. ASU No. 2014-09 affects any entity using U.S. GAAP that either enters into contracts with customers to transfer goods or services or enters into contracts for the transfer of nonfinancial assets unless those contracts are within the scope of other standards. This ASU will supersede the revenue recognition requirements in Topic 605, Revenue Recognition and most industry-specific guidance. The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. To achieve that core principle, an entity should apply the following steps: • Step 1: Identify the contract(s) with a customer. • Step 2: Identify the performance obligations in the contract. • Step 3: Determine the transaction price. • Step 4: Allocate the transaction price to the performance obligations in the contract. • Step 5: Recognize revenue when (or as) the entity satisfies a performance obligation. Public business entities, certain not-for-profit entities, and certain employee benefit plans should apply the guidance in Update 2014-09 to annual reporting periods beginning after December 15, 2017, including interim reporting periods within that reporting period. Earlier application is permitted only as of annual reporting periods beginning after December 15, 2016, including interim reporting periods within that reporting period. All other entities should apply the guidance in Update 2014-09 to annual reporting periods beginning after December 15, 2018, and interim reporting periods within annual reporting periods beginning after December 15, 2019. All other entities may apply the guidance in Update 2014-0 9 earlier as of an annual reporting period beginning after December 15, 2016, including interim reporting periods within that reporting period. All other entities also may apply the guidance in Update 2014-09 earlier as of an annual reporting period beginning after December 15, 2016, and interim reporting periods within annual reporting periods beginning one year after the annual reporting period in which the entity first applies the guidance in Update 2014-09. This ASU is to be applied retrospectively, with certain practical expedients allowed. The Company is currently evaluating the impact of this Statement on its consolidated financial statements. ASU 2015-11, Inventory (Topic 330): Simplifying the Measurement of Inventory The amendments in this Update more closely align the measurement of inventory in GAAP with the measurement of inventory in International Financial Reporting Standards (IFRS). An entity should measure inventory within the scope of this Update at the lower of cost and net realizable value. Net realizable value is the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. Subsequent measurement is unchanged for inventory measured using LIFO or the retail inventory method. The Board has amended some of the other guidance in Topic 330 to more clearly articulate the requirements for the measurement and disclosure of inventory. However, the Board does not intend for those clarifications to result in any changes in practice. Other than the change in the subsequent measurement guidance from the lower of cost or market to the lower of cost and net realizable value for inventory within the scope of this Update, there are no other substantive changes to the guidance on measurement of inventory. The amendments in this Update do not apply to inventory that is measured using last-in, first-out (LIFO) or the retail inventory method. The amendments apply to all other inventory, which includes inventory that is measured using first-in, first-out (FIFO) or average cost. For public business entities, the amendments in this Update are effective for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years. For all other entities, the amendments in this Update are effective for fiscal years beginning after December 15, 2016, and interim periods within fiscal years beginning after December 15, 2017. The amendments in this Update should be applied prospectively with earlier application permitted as of the beginning of an interim or annual reporting period. The adoption of this Statement is not expected to have a material effect on the Company`s financial position or results of operations. ASU 2015-05, Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement The amendments in ASU 2015-05 provide guidance to customers about whether a cloud computing arrangement includes a software license. If a cloud computing arrangement includes a software license, then the customer should account for the software license element of the arrangement consistent with the acquisition of other software licenses. If a cloud computing arrangement does not include a software license, the customer should account for the arrangement as a service contract. The amendments do not change the accounting for a customer’s accounting for service contracts. As a result of the amendments, all software licenses within the scope of Subtopic 350-40 will be accounted for consistent with other licenses of intangible assets. The amendments are effective for public business entities for annual periods, including interim periods within those annual periods, beginning after December 15, 2015. Early adoption is permitted. An entity can elect to adopt the amendments either: (1) prospectively to all arrangements entered into or materially modified after the effective date; or (2) retrospectively. The adoption of this Statement is not expected to have a material effect on the Company`s financial position or results of operations. ASU 2015-04, Compensation - Retirement Benefits (Topic 715): Practical Expedient for the Measurement Date of an Employer’s Defined Benefit Obligation and Plan Assets The amendments in ASU 2015-04 permit an entity with a fiscal year-end that does not coincide with a month-end a practical expedient that permits the entity to measure defined benefit plan assets and obligations using the month-end that is closest to the entity’s fiscal year-end and apply that practical expedient consistently from year to year. The practical expedient should be applied consistently to all plans if an entity has more than one plan. The amendments are effective for public business entities for financial statements issued for fiscal years beginning after December 15, 2015, and interim periods within those fiscal years. Earlier adoption is permitted. The amendments should be applied prospectively. The adoption of this Statement is not expected to have a material effect on the Company`s financial position or results of operations. ASU 2015-03, Interest - Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs The amendments in ASU 2015-03 are intended to simplify the presentation of debt issuance costs. These amendments require that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. The recognition and measurement guidance for debt issuance costs are not affected by the amendments in this ASU. The amendments are effective for public business entities for financial statements issued for fiscal years beginning after December 15, 2015, and interim periods within those fiscal years. Early adoption is permitted for financial statements that have not been previously issued. The adoption of this Statement is not expected to have a material effect on the Company`s financial position or results of operations. ASU 2015-02, Consolidation (Topic 810): Amendments to the Consolidation Analysis The amendments in ASU 2015-02 are intended to improve targeted areas of consolidation guidance for legal entities such as limited partnerships, limited liability corporations, and securitization structures. The new standard reduces the number of consolidation models and improves current GAAP by: -Placing more emphasis on risk of loss when determining a controlling financial interest. -Reducing the frequency of the application of related-party guidance when determining a controlling financial interest in a variable interest entity (VIE). -Changing consolidation conclusions for public and private companies in several industries that typically make use of limited partnerships or VIEs. The amendments are effective for public business entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015. Early adoption is permitted, including adoption in an interim period. ASU 2015-02 may be applied retrospectively in previously issued financial statements. The adoption of this Statement is not expected to have a material effect on the Company`s financial position or results of operations. ASU 2015-01, Income Statement - Extraordinary and Unusual Items (Subtopic 225-20): Simplifying Income Statement Presentation by Eliminating the Concept of Extraordinary Items The amendments in ASU 2015-01 eliminate from U.S. GAAP the concept of extraordinary items. Subtopic 225-20, Income Statement - Extraordinary and Unusual Items, required that an entity separately classify, present, and disclose extraordinary events and transactions. The FASB heard from stakeholders that the concept of extraordinary items causes uncertainty because it is unclear when an item should be considered both unusual and infrequent. Additionally, some stakeholders said that although users find information about unusual or infrequent events and transactions useful, they do not find the extraordinary item classification and presentation necessary to identify those events and transactions. Other stakeholders noted that it is extremely rare in current practice for a transaction or event to meet the requirements to be presented as an extraordinary item. This ASU will also align more closely U.S. GAAP income statement presentation guidance with IAS 1, Presentation of Financial Statements, ASU 2014-15, Presentation of Financial Statements —Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern The FASB has issued ASU No. 2014-15 which is intended to define management’s responsibility to evaluate whether there is substantial doubt about an organization’s ability to continue as a going concern and to provide related footnote disclosures. This ASU provides guidance to an organization’s management, with principles and definitions that are intended to reduce diversity in the timing and content of disclosures that are commonly provided by organizations today in the financial statement footnotes. The amendments are effective for annual periods ending after December 15, 2016, and interim periods within annual periods beginning after December 15, 2016. Early application is permitted for annual or interim reporting periods for which the financial statements have not previously been issued. The Company is currently evaluating the impact of this Statement on its consolidated financial statements. ASU 2014-13, Consolidation (Topic 810): Measuring the Financial Assets and the Financial Liabilities of a Consolidated Collateralized Financing Entity The FASB has issued ASU No. 2014-13 which will apply to a reporting entity that is required to consolidate a collateralized financing entity under the Variable Interest Entities guidance. The fair value of the financial assets of a collateralized financing entity, as determined under GAAP, may differ from the fair value of its financial liabilities even when the financial liabilities have recourse only to the financial assets. Before this ASU, there was no specific guidance in GAAP on how a reporting entity should account for that difference. The amendments in this ASU provide an alternative to Topic 820, Fair Value Measurement, for measuring the financial assets and the financial liabilities of a consolidated collateralized financing entity to eliminate that difference. The amendments in this ASU are effective for public business entities for annual periods, and interim periods within those annual periods, beginning after December 15, 2015. Early adoption is permitted as of the beginning of an annual period. The adoption of this Statement is not expected to have a material effect on the Company`s financial position or results of operations. ASU 2014-12, Compensation – Stock Compensation (Topic 718): Accounting for shared-based payments when the terms of an award provide that a performance target could be achieved after the requisite service period. The FASB has issued ASU No. 2014-12 which requires that a performance target that affects vesting and that could be achieved after the requisite service period be treated as a performance condition. A reporting entity should apply existing guidance in Topic 718, Compensation – Stock Compensation,

Intangible Assets

Intangible Assets	9 Months Ended
	Sep. 30, 2015
Intangible Assets [Text Block]	4. Intangible Assets As of September 30, 2015 NDA acquisition costs of $6 thousand (December 31, 2014 - $46 thousand) were recorded as intangible assets on the Company’s balance sheet and represent the net book value of the final progress payment related to the acquisition of 100% ownership of Forfivo XL®. The asset is being amortized over its estimated useful life of 39 months. The Company commenced amortization upon commercial launch of the product in October 2012.

Bank indebtedness

Bank indebtedness	9 Months Ended
	Sep. 30, 2015
Bank indebtedness [Text Block]	5. Bank indebtedness The Company's credit facility is subject to review annually and consists of an operating demand line of credit of up to CAD$250 thousand and corporate credits cards of up to CAD$55 thousand. Borrowings under the operating demand line of credit bear interest at the Bank’s prime lending rate plus 2%. The credit facility and term loan (see note 7) are secured by a first ranking movable hypothec on all present and future movable property of the Company and a 50% guarantee by Export Development Canada, a Canadian Crown corporation export credit agency. The terms of the banking agreement require the Company to comply with certain debt service coverage and debt to net worth financial covenants on an annual basis at the end of the Company’s fiscal year. As at September 30, 2015, the Company has not drawn on its credit facility.

Deferred License Revenue

Deferred License Revenue	9 Months Ended
	Sep. 30, 2015
Deferred License Revenue [Text Block]	6. Deferred License Revenue Deferred license revenue represents upfront payments received for the granting of licenses to the Company’s patents, intellectual property, and proprietary technology, for commercialization. Deferred license revenue is recognized in income over the period where sales of the licensed products will occur. Pursuant to the execution of a licensing agreement for Forfivo XL®, IntelGenx received an upfront fee from Edgemont Pharmaceuticals (“Edgemont”) in the first quarter of 2012, which IntelGenx recognized as deferred license revenue. The deferred license revenue is being amortized in income over a period of 39 months, which is the minimum period where sales of Forfivo XL® are expected to be exclusive. In the fourth quarter of 2014, Edgemont exercised its right to extend the license for the exclusive marketing of Forfivo XL®. In accordance with the terms for exercising such right, IntelGenx invoiced $1.25 million to Edgemont and recognized the full amount as deferred revenue, which was recognized as revenue from October 2014 through September 2015. As a result of this policy, IntelGenx has a deferred revenue balance of $76 thousand at September 30, 2015 (December 31, 2014 - $1,245 thousand) that has not been recognized as revenue.

Term loan

Term loan	9 Months Ended
	Sep. 30, 2015
Term loan [Text Block]	7. Term loan The Company’s term loan facility consists of CAD$492 thousand bearing interest at the Bank’s prime lending rate plus 2.50%, and CAD$3 million bearing interest at a fixed rate to be determined at drawdown. The term loan is subject to the same security and financial covenants as the bank indebtedness (see note 5). The CAD$3 million tranche of the term loan will be disbursed subsequent to meeting certain conditions. There is a moratorium on capital repayments for the first 6 months of each drawdown, at which point the term loan will be repayable in monthly instalments over 60 months. September 30, 2015 September 30, 2014 $ $ Term loan 368 0 Current portion 74 0 294 0 Principal repayments due in each of the next five years are as follows: 2015 $ 18 2016 75 2017 75 2018 75 2019 75 Thereafter 50

Capital Stock

Capital Stock	9 Months Ended
	Sep. 30, 2015
Capital Stock [Text Block]	8. Capital Stock September 30, December 31, 2015 2014 Authorized - 100,000,000 common shares of $0.00001 par value 20,000,000 preferred shares of $0.00001 par value Issued - $ 636 $ 635

Additional Paid-In Capital

Additional Paid-In Capital	9 Months Ended
	Sep. 30, 2015
Additional Paid-In Capital [Text Block]	9. Additional Paid-In Capital Stock options During the nine month period ended September 30, 2015 a total of 150,000 stock options were exercised for 150,000 common shares having a par value of $0 thousand in aggregate, for cash consideration of $62 thousand, resulting in an increase in additional paid-in capital of $62 thousand. Compensation expenses for stock-based compensation of $105 thousand and $82 thousand were recorded during the nine month periods ended September 30, 2015 and 2014 respectively. The entire amounts expensed in 2015 and 2014 relate to stock options granted to employees and directors. As at September 30, 2015 the Company has $159 thousand (2014 - $56 thousand) of unrecognized stock-based compensation. Warrants No warrants were exercised during the nine month period ended September 30, 2015. During the nine month period ended September 30, 2014 a total of 2,480,988 warrants were exercised for 2,480,988 common shares having a par value of $0 thousand in aggregate, for cash consideration of $1,619 thousand, resulting in an increase in additional paid-in capital of $1,619 thousand.

Income Tax

Income Tax	9 Months Ended
	Sep. 30, 2015
Income Tax [Text Block]	10. Income taxes Income taxes reported differ from the amount computed by applying the statutory rates to net income. The reasons are as follows: For the Three-Month Period For the Nine-Month Period Ended September 30, Ended September 30, 2015 2014 2015 2014 Statutory income taxes $ 393 ($117 ) $ 305 ($401 ) Net operating losses for which no tax benefits have been recorded 0 13 0 169 Net operating losses of prior years applied against current period (450 ) 0 (484 ) 0 Excess of depreciation over capital cost allowance 6 2 7 2 Non-deductible expenses 7 5 28 22 Undeducted research and development expenses 44 97 144 208 $ 0 $ 0 $ 0 $ 0 As at December 31, 2014, management determined that enough uncertainty existed relative to the realization of the deferred income tax asset balances to warrant the application of a full valuation allowance. Although management believes that certain of the net operating losses will be applied against earnings in 2015, management continues to believe that enough uncertainty exists relative to the realization of the remaining deferred income tax asset balances such that no recognition of deferred income tax assets is warranted.

Related Party Transactions

Related Party Transactions	9 Months Ended
	Sep. 30, 2015
Related Party Transactions [Text Block]	11. Related Party Transactions Included in management salaries are $1 thousand (2014 - $30 thousand) for options granted to the Chief Executive Officer, $6 thousand (2014: nil) for options granted to the VP Operations and $25 thousand (2014 - $33 thousand) for options granted to the Chief Financial Officer. Also included are $61 thousand (2014 - $11 thousand) for options granted to non-employee directors. All options were granted under the 2006 Stock Option Plan. Also included in management salaries are director fees of $198 thousand (2014 - $139 thousand). The above related party transactions have been measured at the exchange amount which is the amount of the consideration established and agreed to by the related parties.

Basic and Diluted Earnings (Los

Basic and Diluted Earnings (Loss) Per Common Share	9 Months Ended
	Sep. 30, 2015
Basic and Diluted Earnings (Loss) Per Common Share [Text Block]	12. Basic and Diluted Earnings (Loss) Per Common Share Basic and diluted earnings (loss) per common share is calculated based on the weighted average number of shares outstanding during the period. Common equivalent shares from stock options and warrants are also included in the diluted per share calculations unless the effect of the inclusion would be antidilutive.

Summary of Significant Accounti

Summary of Significant Accounting Policies (Policies)	9 Months Ended
	Sep. 30, 2015
ASU 2015-16, Business Combinations (Topic 805) Simplifying the Accounting for Measurement-Period Adjustments [Policy Text Block]	ASU 2015-16, Business Combinations (Topic 805): Simplifying the Accounting for Measurement-Period Adjustments The FASB issued this Update which requires that an acquirer recognize adjustments to provisional amounts that are identified during the measurement period in the reporting period in which the adjustment amounts are determined. The amendments in this Update require that the acquirer record, in the same period’s financial statements, the effect on earnings of changes in depreciation, amortization, or other income effects, if any, as a result of the change to the provisional amounts, calculated as if the accounting had been completed at the acquisition date. The amendments in this Update require an entity to present separately on the face of the income statement or disclose in the notes the portion of the amount recorded in current-period earnings by line item that would have been recorded in previous reporting periods if the adjustment to the provisional amounts had been recognized as of the acquisition date. The amendments in this Update apply to all entities that have reported provisional amounts for items in a business combination for which the accounting is incomplete by the end of the reporting period in which the combination occurs and during the measurement period have an adjustment to provisional amounts recognized. For public business entities, the amendments in this Update are effective for fiscal years beginning after December 15, 2015, including interim periods within those fiscal years. The amendments in this Update should be applied prospectively to adjustments to provisional amounts that occur after the effective date of this Update with earlier application permitted for financial statements that have not yet been issued. For all other entities, the amendments in this Update are effective for fiscal years beginning after December 15, 2016, and interim periods within fiscal years beginning after December 15, 2017. The adoption of this Statement is not expected to have a material effect on the Company`s financial position or results of operations.
ASU 2015-14, Revenue From Contracts With Customers (Topic 606), Deferral of the Effective Date [Policy Text Block]	ASU 2015-14, Revenue From Contracts With Customers (Topic 606), Deferral of the Effective Date The FASB and IASB have deferred the effective date of following amendment for all entities by one year. The FASB and IASB (the Boards) have issued converged standards on revenue recognition. ASU No. 2014-09 affects any entity using U.S. GAAP that either enters into contracts with customers to transfer goods or services or enters into contracts for the transfer of nonfinancial assets unless those contracts are within the scope of other standards. This ASU will supersede the revenue recognition requirements in Topic 605, Revenue Recognition and most industry-specific guidance. The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. To achieve that core principle, an entity should apply the following steps:
ASU 2015-11, Inventory (Topic 330) Simplifying the Measurement of Inventory [Policy Text Block]	ASU 2015-11, Inventory (Topic 330): Simplifying the Measurement of Inventory The amendments in this Update more closely align the measurement of inventory in GAAP with the measurement of inventory in International Financial Reporting Standards (IFRS). An entity should measure inventory within the scope of this Update at the lower of cost and net realizable value. Net realizable value is the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. Subsequent measurement is unchanged for inventory measured using LIFO or the retail inventory method. The Board has amended some of the other guidance in Topic 330 to more clearly articulate the requirements for the measurement and disclosure of inventory. However, the Board does not intend for those clarifications to result in any changes in practice. Other than the change in the subsequent measurement guidance from the lower of cost or market to the lower of cost and net realizable value for inventory within the scope of this Update, there are no other substantive changes to the guidance on measurement of inventory. The amendments in this Update do not apply to inventory that is measured using last-in, first-out (LIFO) or the retail inventory method. The amendments apply to all other inventory, which includes inventory that is measured using first-in, first-out (FIFO) or average cost.
ASU 2015-05, Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40) Customers Accounting for Fees Paid in a Cloud Computing Arrangement [Policy Text Block]	ASU 2015-05, Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement The amendments in ASU 2015-05 provide guidance to customers about whether a cloud computing arrangement includes a software license. If a cloud computing arrangement includes a software license, then the customer should account for the software license element of the arrangement consistent with the acquisition of other software licenses. If a cloud computing arrangement does not include a software license, the customer should account for the arrangement as a service contract. The amendments do not change the accounting for a customer’s accounting for service contracts. As a result of the amendments, all software licenses within the scope of Subtopic 350-40 will be accounted for consistent with other licenses of intangible assets. The amendments are effective for public business entities for annual periods, including interim periods within those annual periods, beginning after December 15, 2015. Early adoption is permitted. An entity can elect to adopt the amendments either: (1) prospectively to all arrangements entered into or materially modified after the effective date; or (2) retrospectively. The adoption of this Statement is not expected to have a material effect on the Company`s financial position or results of operations.
ASU 2015-04, Compensation - Retirement Benefits (Topic 715) Practical Expedient for the Measurement Date of an Employers Defined Benefit Obligation and Plan Assets [Policy Text Block]	ASU 2015-04, Compensation - Retirement Benefits (Topic 715): Practical Expedient for the Measurement Date of an Employer’s Defined Benefit Obligation and Plan Assets The amendments in ASU 2015-04 permit an entity with a fiscal year-end that does not coincide with a month-end a practical expedient that permits the entity to measure defined benefit plan assets and obligations using the month-end that is closest to the entity’s fiscal year-end and apply that practical expedient consistently from year to year. The practical expedient should be applied consistently to all plans if an entity has more than one plan. The amendments are effective for public business entities for financial statements issued for fiscal years beginning after December 15, 2015, and interim periods within those fiscal years. Earlier adoption is permitted. The amendments should be applied prospectively. The adoption of this Statement is not expected to have a material effect on the Company`s financial position or results of operations.
ASU 2015-03, Interest - Imputation of Interest (Subtopic 835-30) Simplifying the Presentation of Debt Issuance Costs [Policy Text Block]	ASU 2015-03, Interest - Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs The amendments in ASU 2015-03 are intended to simplify the presentation of debt issuance costs. These amendments require that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. The recognition and measurement guidance for debt issuance costs are not affected by the amendments in this ASU. The amendments are effective for public business entities for financial statements issued for fiscal years beginning after December 15, 2015, and interim periods within those fiscal years. Early adoption is permitted for financial statements that have not been previously issued. The adoption of this Statement is not expected to have a material effect on the Company`s financial position or results of operations.
ASU 2015-02, Consolidation (Topic 810) Amendments to the Consolidation Analysis [Policy Text Block]	ASU 2015-02, Consolidation (Topic 810): Amendments to the Consolidation Analysis The amendments in ASU 2015-02 are intended to improve targeted areas of consolidation guidance for legal entities such as limited partnerships, limited liability corporations, and securitization structures. The new standard reduces the number of consolidation models and improves current GAAP by: -Placing more emphasis on risk of loss when determining a controlling financial interest. -Reducing the frequency of the application of related-party guidance when determining a controlling financial interest in a variable interest entity (VIE). -Changing consolidation conclusions for public and private companies in several industries that typically make use of limited partnerships or VIEs. The amendments are effective for public business entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015. Early adoption is permitted, including adoption in an interim period. ASU 2015-02 may be applied retrospectively in previously issued financial statements. The adoption of this Statement is not expected to have a material effect on the Company`s financial position or results of operations.
ASU 2015-01, Income Statement - Extraordinary and Unusual Items (Subtopic 225-20) Simplifying Income Statement Presentation [Policy Text Block]	ASU 2015-01, Income Statement - Extraordinary and Unusual Items (Subtopic 225-20): Simplifying Income Statement Presentation by Eliminating the Concept of Extraordinary Items The amendments in ASU 2015-01 eliminate from U.S. GAAP the concept of extraordinary items. Subtopic 225-20, Income Statement - Extraordinary and Unusual Items, required that an entity separately classify, present, and disclose extraordinary events and transactions. The FASB heard from stakeholders that the concept of extraordinary items causes uncertainty because it is unclear when an item should be considered both unusual and infrequent. Additionally, some stakeholders said that although users find information about unusual or infrequent events and transactions useful, they do not find the extraordinary item classification and presentation necessary to identify those events and transactions. Other stakeholders noted that it is extremely rare in current practice for a transaction or event to meet the requirements to be presented as an extraordinary item. This ASU will also align more closely U.S. GAAP income statement presentation guidance with IAS 1, Presentation of Financial Statements,
ASU 2014-15, Presentation of Financial Statements Going Concern (Subtopic 205-40) Disclosure of Uncertainties about an Entitys Ability to Continue as a Going Concern [Policy Text Block]	ASU 2014-15, Presentation of Financial Statements —Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern The FASB has issued ASU No. 2014-15 which is intended to define management’s responsibility to evaluate whether there is substantial doubt about an organization’s ability to continue as a going concern and to provide related footnote disclosures. This ASU provides guidance to an organization’s management, with principles and definitions that are intended to reduce diversity in the timing and content of disclosures that are commonly provided by organizations today in the financial statement footnotes. The amendments are effective for annual periods ending after December 15, 2016, and interim periods within annual periods beginning after December 15, 2016. Early application is permitted for annual or interim reporting periods for which the financial statements have not previously been issued. The Company is currently evaluating the impact of this Statement on its consolidated financial statements.
ASU 2014-13, Consolidation (Topic 810) Measuring the Financial Assets and the Financial Liabilities of a Consolidated Collateralized Financing Entity [Policy Text Block]	ASU 2014-13, Consolidation (Topic 810): Measuring the Financial Assets and the Financial Liabilities of a Consolidated Collateralized Financing Entity The FASB has issued ASU No. 2014-13 which will apply to a reporting entity that is required to consolidate a collateralized financing entity under the Variable Interest Entities guidance. The fair value of the financial assets of a collateralized financing entity, as determined under GAAP, may differ from the fair value of its financial liabilities even when the financial liabilities have recourse only to the financial assets. Before this ASU, there was no specific guidance in GAAP on how a reporting entity should account for that difference. The amendments in this ASU provide an alternative to Topic 820, Fair Value Measurement, for measuring the financial assets and the financial liabilities of a consolidated collateralized financing entity to eliminate that difference. The amendments in this ASU are effective for public business entities for annual periods, and interim periods within those annual periods, beginning after December 15, 2015. Early adoption is permitted as of the beginning of an annual period. The adoption of this Statement is not expected to have a material effect on the Company`s financial position or results of operations.
ASU 2014-12, Compensation Stock Compensation (Topic 718) Accounting for shared-based payments [Policy Text Block]	ASU 2014-12, Compensation – Stock Compensation (Topic 718): Accounting for shared-based payments when the terms of an award provide that a performance target could be achieved after the requisite service period. The FASB has issued ASU No. 2014-12 which requires that a performance target that affects vesting and that could be achieved after the requisite service period be treated as a performance condition. A reporting entity should apply existing guidance in Topic 718, Compensation – Stock Compensation,

Term loan (Tables)

Term loan (Tables)	9 Months Ended
	Sep. 30, 2015
Term loan [Table Text Block]	September 30, 2015 September 30, 2014 $ $ Term loan 368 0 Current portion 74 0 294 0
Term loan principal repayments [Table Text Block]	2015 $ 18 2016 75 2017 75 2018 75 2019 75 Thereafter 50

Capital Stock (Tables)

Capital Stock (Tables)	9 Months Ended
	Sep. 30, 2015
Schedule of Stock by Class [Table Text Block]	September 30, December 31, 2015 2014 Authorized - 100,000,000 common shares of $0.00001 par value 20,000,000 preferred shares of $0.00001 par value Issued - $ 636 $ 635

Income Tax (Tables)

Income Tax (Tables)	9 Months Ended
	Sep. 30, 2015
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block]	For the Three-Month Period For the Nine-Month Period Ended September 30, Ended September 30, 2015 2014 2015 2014 Statutory income taxes $ 393 ($117 ) $ 305 ($401 ) Net operating losses for which no tax benefits have been recorded 0 13 0 169 Net operating losses of prior years applied against current period (450 ) 0 (484 ) 0 Excess of depreciation over capital cost allowance 6 2 7 2 Non-deductible expenses 7 5 28 22 Undeducted research and development expenses 44 97 144 208 $ 0 $ 0 $ 0 $ 0

Intangible Assets (Narrative) (

Intangible Assets (Narrative) (Details) $ in Thousands	9 Months Ended
	Sep. 30, 2015USD ($)mo
Intangible Assets 1	$ 6
Intangible Assets 2	$ 46
Intangible Assets 3	100.00%
Intangible Assets 4 | mo	39

Bank indebtedness (Narrative) (

Bank indebtedness (Narrative) (Details) CAD in Thousands	9 Months Ended
	Sep. 30, 2015CAD
Bank Indebtedness 1	CAD 250
Bank Indebtedness 2	CAD 55
Bank Indebtedness 3	2.00%
Bank Indebtedness 4	50.00%

Deferred License Revenue (Narra

Deferred License Revenue (Narrative) (Details) $ in Thousands	9 Months Ended
	Sep. 30, 2015USD ($)mo
Deferred License Revenue 1 | mo	39
Deferred License Revenue 2	$ 1,250
Deferred License Revenue 3	76
Deferred License Revenue 4	$ 1,245

Term loan (Narrative) (Details)

Term loan (Narrative) (Details) CAD in Thousands	9 Months Ended
	Sep. 30, 2015CADmo
Term Loan 1	CAD 492
Term Loan 2	2.50%
Term Loan 3	CAD 3,000
Term Loan 4	CAD 3,000
Term Loan 5 | mo	6
Term Loan 6 | mo	60

Additional Paid-In Capital (Nar

Additional Paid-In Capital (Narrative) (Details) $ in Thousands	9 Months Ended
	Sep. 30, 2015USD ($)shares
Additional Paid-in Capital 1 | shares	150,000
Additional Paid-in Capital 2 | shares	150,000
Additional Paid-in Capital 3	$ 0
Additional Paid-in Capital 4	62
Additional Paid-in Capital 5	62
Additional Paid-in Capital 6	105
Additional Paid-in Capital 7	82
Additional Paid-in Capital 8	159
Additional Paid-in Capital 9	$ 56
Additional Paid-in Capital 10 | shares	2,480,988
Additional Paid-in Capital 11 | shares	2,480,988
Additional Paid-in Capital 12	$ 0
Additional Paid-in Capital 13	1,619
Additional Paid-in Capital 14	$ 1,619

Related Party Transactions (Nar

Related Party Transactions (Narrative) (Details) $ in Thousands	9 Months Ended
	Sep. 30, 2015USD ($)shares
Related Party Transactions 1	$ 1
Related Party Transactions 2	30
Related Party Transactions 3	$ 6
Related Party Transactions 4 | shares	0
Related Party Transactions 5	$ 25
Related Party Transactions 6	33
Related Party Transactions 7	61
Related Party Transactions 8	11
Related Party Transactions 9	198
Related Party Transactions 10	$ 139

Term loan (Details)

Term loan (Details) $ in Thousands	9 Months Ended
	Sep. 30, 2015USD ($)
Term Loan Term Loan 1	$ 368
Term Loan Term Loan 2	0
Term Loan Term Loan 3	74
Term Loan Term Loan 4	0
Term Loan Term Loan 5	294
Term Loan Term Loan 6	$ 0

Term loan principal repayments

Term loan principal repayments (Details) $ in Thousands	9 Months Ended
	Sep. 30, 2015USD ($)
Term Loan Term Loan Principal Repayments 1	$ 18
Term Loan Term Loan Principal Repayments 2	75
Term Loan Term Loan Principal Repayments 3	75
Term Loan Term Loan Principal Repayments 4	75
Term Loan Term Loan Principal Repayments 5	75
Term Loan Term Loan Principal Repayments 6	$ 50

Schedule of Stock by Class (Det

Schedule of Stock by Class (Details)	9 Months Ended
	Sep. 30, 2015USD ($)shares
Capital Stock Schedule Of Stock By Class 1 | shares	100,000,000
Capital Stock Schedule Of Stock By Class 2	$ 0.00001
Capital Stock Schedule Of Stock By Class 3 | shares	20,000,000
Capital Stock Schedule Of Stock By Class 4	$ 0.00001
Capital Stock Schedule Of Stock By Class 5	$ 63,615,255
Capital Stock Schedule Of Stock By Class 6 | shares	63,465,255
Capital Stock Schedule Of Stock By Class 7	$ 636
Capital Stock Schedule Of Stock By Class 8	$ 635

Schedule of Effective Income Ta

Schedule of Effective Income Tax Rate Reconciliation (Details) $ in Thousands	9 Months Ended
	Sep. 30, 2015USD ($)
Income Tax Schedule Of Effective Income Tax Rate Reconciliation 1	$ 393
Income Tax Schedule Of Effective Income Tax Rate Reconciliation 2	117
Income Tax Schedule Of Effective Income Tax Rate Reconciliation 3	305
Income Tax Schedule Of Effective Income Tax Rate Reconciliation 4	401
Income Tax Schedule Of Effective Income Tax Rate Reconciliation 5	0
Income Tax Schedule Of Effective Income Tax Rate Reconciliation 6	13
Income Tax Schedule Of Effective Income Tax Rate Reconciliation 7	0
Income Tax Schedule Of Effective Income Tax Rate Reconciliation 8	169
Income Tax Schedule Of Effective Income Tax Rate Reconciliation 9	(450)
Income Tax Schedule Of Effective Income Tax Rate Reconciliation 10	0
Income Tax Schedule Of Effective Income Tax Rate Reconciliation 11	(484)
Income Tax Schedule Of Effective Income Tax Rate Reconciliation 12	0
Income Tax Schedule Of Effective Income Tax Rate Reconciliation 13	6
Income Tax Schedule Of Effective Income Tax Rate Reconciliation 14	2
Income Tax Schedule Of Effective Income Tax Rate Reconciliation 15	7
Income Tax Schedule Of Effective Income Tax Rate Reconciliation 16	2
Income Tax Schedule Of Effective Income Tax Rate Reconciliation 17	7
Income Tax Schedule Of Effective Income Tax Rate Reconciliation 18	5
Income Tax Schedule Of Effective Income Tax Rate Reconciliation 19	28
Income Tax Schedule Of Effective Income Tax Rate Reconciliation 20	22
Income Tax Schedule Of Effective Income Tax Rate Reconciliation 21	44
Income Tax Schedule Of Effective Income Tax Rate Reconciliation 22	97
Income Tax Schedule Of Effective Income Tax Rate Reconciliation 23	144
Income Tax Schedule Of Effective Income Tax Rate Reconciliation 24	208
Income Tax Schedule Of Effective Income Tax Rate Reconciliation 25	0
Income Tax Schedule Of Effective Income Tax Rate Reconciliation 26	0
Income Tax Schedule Of Effective Income Tax Rate Reconciliation 27	0
Income Tax Schedule Of Effective Income Tax Rate Reconciliation 28	$ 0