IntelGenx Technologies (IGXT) 10-Q 9 Nov 17 2017 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information	9 Months Ended
	Sep. 30, 2017shares
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Sep. 30, 2017
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	66,931,467
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Well Known Seasoned Issuer	No
Document Fiscal Year Focus	2,017
Document Fiscal Period Focus	Q3

Consolidated Balance Sheet

Consolidated Balance Sheet - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Current
Cash	$ 1,631	$ 612
Short-term investments	5,291	3,884
Accounts receivable	470	1,044
Prepaid expenses	236	566
Investment tax credits receivable	254	246
Total current assets	7,882	6,352
Leasehold improvements and equipment, net	6,523	5,730
Security deposits	761	708
Total assets	15,166	12,790
Current
Accounts payable and accrued liabilities	1,222	897
Current portion of long-term debt	776	704
Deferred revenue	978	3,634
Total current liabilities	2,976	5,235
Deferred lease obligations	50	45
Long-term debt	2,192	2,565
Convertible debentures	5,158	0
Total liabilities	10,376	7,845
Shareholders' equity
Capital stock, common shares, $0.00001 par value; 100,000,000 shares authorized; 66,931,467 shares issued and outstanding (2016: 64,812,020 common shares)	1	1
Additional paid-in capital	25,149	23,700
Accumulated deficit	(19,697)	(17,737)
Accumulated other comprehensive loss	(663)	(1,019)
Total shareholders' equity	4,790	4,945
Total Liabilities and Shareholders' Equity	$ 15,166	$ 12,790

Consolidated Balance Sheet (Par

Consolidated Balance Sheet (Parenthetical) - $ / shares	Sep. 30, 2017	Dec. 31, 2016
Common Stock, Par Value Per Share	$ 0.00001	$ 0.00001
Common Stock, Shares Authorized	100,000,000	100,000,000
Common Stock, Shares, Issued	66,931,467	64,812,020
Common Stock, Shares, Outstanding	66,931,467	64,812,020

Consolidated Statement of Share

Consolidated Statement of Shareholders' Equity - 9 months ended Sep. 30, 2017 - 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, 2016	$ 1	$ 23,700	$ (17,737)	$ (1,019)	$ 4,945
Beginning Balance (Shares) at Dec. 31, 2016	64,812,020
Foreign currency translation adjustment				356	356
Warrants exercised		1,120			1,120
Warrants exercised (Shares)	1,984,447
Options exercised		62			62
Options exercised (Shares)	135,000
Stock-based compensation		267			267
Net loss for the period			(1,960)		(1,960)
Ending Balance at Sep. 30, 2017	$ 1	$ 25,149	$ (19,697)	$ (663)	$ 4,790
Ending Balance (Shares) at Sep. 30, 2017	66,931,467

Consolidated Statement of Compr

Consolidated Statement of Comprehensive Income (Loss) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Revenues
Royalties	$ 0	$ 0	$ 0	$ 1,051
License and other revenue	1,254	1,819	3,733	2,258
Total revenues	1,254	1,819	3,733	3,309
Expenses
Cost of royalty, license and other revenue	97	97	278	228
Research and development expense	578	388	1,876	1,295
Selling, general and administrative expense	963	1,072	2,693	2,837
Depreciation of tangible assets	185	174	525	361
Total expenses	1,823	1,731	5,372	4,721
Operating (loss) income	(569)	88	(1,639)	(1,412)
Interest income	5	2	8	2
Financing and interest expense	(218)	(60)	(329)	(146)
Net (loss) income	(782)	30	(1,960)	(1,556)
Other comprehensive income
Foreign currency translation adjustment	196	32	356	105
Comprehensive (loss) income	$ (586)	$ 62	$ (1,604)	$ (1,451)
Basic:
Weighted average number of shares outstanding	66,834,363	63,874,252	65,885,055	63,702,536
Diluted (loss) earnings per common share	$ (0.01)	$ 0	$ (0.02)	$ (0.02)
Diluted:
Weighted average number of shares outstanding	66,834,363	73,541,378	65,885,055	63,702,536
Diluted (loss) earnings per common share	$ (0.01)	$ 0	$ (0.02)	$ (0.02)

Consolidated Statement of Cash

Consolidated Statement of Cash Flows - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Funds provided (used) - Operating activities
Net (loss) income	$ (782)	$ 30	$ (1,960)	$ (1,556)
Depreciation of tangible assets	185	174	525	361
Stock-based compensation	44	49	267	141
Accretion expense	57	0	57	0
Total Adjustments	(496)	253	(1,111)	(1,054)
Changes in non-cash items related to operations:
Accounts receivable	(103)	539	574	929
Prepaid expenses	168	(430)	330	(469)
Investment tax credits receivable	(41)	(21)	(8)	(74)
Security deposit	0	11	0	(218)
Accounts payable and accrued liabilities	770	(331)	325	(769)
Deferred revenue	(902)	4,651	(2,656)	4,651
Deferred lease obligations	2	0	5	18
Net change in assets and liabilities	(106)	4,419	(1,430)	4,068
Net cash (used in) from operating activities	(602)	4,672	(2,541)	3,014
Financing activities
Issuance of long-term debt	0	0	0	1,569
Repayment of long-term debt	(169)	(239)	(523)	(309)
Proceeds from exercise of warrants and stock options	166	596	1,182	596
Net proceeds from issuance of convertible debentures	4,978	0	4,978	0
Net cash provided by financing activities	4,975	357	5,637	1,856
Investing activities
Additions to leasehold improvements and equipment	(452)	(385)	(907)	(2,229)
Acquisitions of short-term investments	(3,952)	(3,000)	(3,952)	(3,000)
Redemption of short-term investments	410	0	2,735	0
Net cash used in investing activities	(3,994)	(3,385)	(2,124)	(5,229)
Increase (decrease) in cash	379	1,644	972	(359)
Effect of foreign exchange on cash	77	(20)	47	214
Cash
Beginning of period	1,175	1,096	612	2,865
End of period	$ 1,631	$ 2,720	$ 1,631	$ 2,720

Basis of Presentation

Basis of Presentation	9 Months Ended
	Sep. 30, 2017
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, 2016. Operating results for the nine months ended September 30, 2017 are not necessarily indicative of the results that may be expected for the year ending December 31, 2017. 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, 2017
Adoption of New Accounting Standards [Text Block]	2. Adoption of New Accounting Standards The FASB issued Update 2016-06, Derivatives and Hedging Contingent Put and Call Options in Debt Instruments, clarifying the requirements for assessing whether contingent call (put) options that can accelerate the payment of principal on debt instruments are clearly and closely related to their debt hosts. The amendments in this Update require an entity performing the assessment to assess the embedded call (put) options solely in accordance with the four-step decision sequence. 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. The adoption of this statement did not have a material effect on the Company’s financial position or results. The FASB issued Update 2016-09, Compensation – Stock Compensation Improvements to Employee Share-Based Payment Accounting, simplifying several aspects of the accounting for share-based payment transactions, including income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. 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. The adoption of this statement did not have a material effect on the Company’s financial position or results. The FASB issued Update 2015-11, Inventory: Simplifying the Measurement of Inventory, aligning the measurement of inventory in GAAP with the measurement of inventory in International Financial Reporting Standards (IFRS). The amendments in this Update state that 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. 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. The adoption of this statement did not have a material effect on the Company’s financial position or results. The FASB issued 2015-017, Income Taxes: Balance Sheet Classification of Deferred Taxes, which requires that deferred tax liabilities be classified as noncurrent in a classified statement of financial position. 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. The adoption of this statement did not have a material effect on the Company’s financial position or results.

Significant Accounting Policies

Significant Accounting Policies	9 Months Ended
	Sep. 30, 2017
Significant Accounting Policies [Text Block]	3. Significant Accounting Policies Leasehold Improvements and Equipment Leasehold improvements and equipment are recorded at cost. Provisions for depreciation are based on their estimated useful lives using the methods as follows: On the declining balance method - Laboratory and office equipment 20% Computer equipment 30% On the straight-line method - Leasehold improvements over the lease term Manufacturing equipment 5 – 10 years Recent Accounting Pronouncements ASU 2017-09 – Stock Compensation (Topic 718) Scope of Modification Accounting In May 2016, the FASB issued ASU 2017-09 which provides guidance on determining which changes to the terms and conditions of share-based payment awards require an entity to apply modification accounting under Topic 718. The statement is effective for annual periods beginning after December 15, 2017. Early adoption is permitted in any interim or annual period for which financial statements have not yet been issued. The Company is currently evaluating the impact of this Statement on its consolidated financial statements. ASU 2016-18 – Statement of Cash Flows (Topic 230) Restricted Cash In November 2016, the FASB issued ASU 2016-18 which requires that the statement of cash flows explain the change during the period in the total cash, cash equivalents, and amounts generally described as restricted or restricted cash equivalents. The statement is effective for annual periods beginning after December 15, 2017, and interim periods within those annual periods. Early adoption is permitted in any interim or annual period and should be applied on a retrospective basis. The Company is currently evaluating the impact of this Statement on its consolidated financial statements. ASU 2016-15 – Statement of Cash Flows (Topic 230) Classification of Certain Cash Receipts and Cash Payments In August 2016, the FASB issued ASU 2016-15 which clarifies how certain cash receipts and payments are to be presented in the Statement of cash flows. The statement is effective for annual periods beginning after December 15, 2017, and interim periods within those annual periods. Early adoption is permitted in any interim or annual period, with any adjustments reflected as of the beginning of the fiscal year of adoption. The Company is currently evaluating the impact of this Statement on its consolidated financial statements. ASU 2016-01 – Financial Instruments – Overall (Subtopic 825-10) Recognition and Measurement of Financial Assets and Financial Liabilities In January 2016, the FASB issued ASU 2016-01, which will significantly change practice for all entities. The targeted amendments to existing guidance are expected to include: 1. Equity investments that do not result in consolidation and are not accounted for under the equity method would be measured at fair value through net income, unless they qualify for the proposed practicability exception for investments that do not have readily determinable fair values. 2. Changes in instrument-specific credit risk for financial liabilities that are measured under the fair value option would be recognized in other comprehensive income. 3. Entities would make the assessment of the realizability of a deferred tax asset (DTA) related to an available- for-sale (AFS) debt security in combination with the entity’s other DTAs. The guidance would eliminate one method that is currently acceptable for assessing the realizability of DTAs related to AFS debt securities. That is, an entity would no longer be able to consider its intent and ability to hold debt securities with unrealized losses until recovery. 4. Disclosure of the fair value of financial instruments measured at amortized cost would no longer be required for entities that are not public business entities. For public business entities, the amendments in this Update are effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. The Company is currently evaluating the impact of this Statement on its consolidated financial statements. ASU 2017-04 – Intangibles – Goodwill and Other (Topic 350) Simplifying the Test for Goodwill Impairment The FASB issued ASU 2017-04 which eliminates Step 2 from the goodwill impairment test and eliminates the requirements for any reporting unit with a zero or negative carrying amount to perform a qualitative assessment. These amendments are effective for a public business entity for fiscal years beginning after December 15, 2019. Early adoption is permitted in any interim or annual period and should be applied on a retrospective basis. The Company is currently evaluating the impact of this Statement on its consolidated financial statements. ASU 2017-01 - Business Combinations (Topic 805) - Clarifying the Definition of a Business The FASB issued ASU 2017-01 which clarifies the definition of a business and is intended to help companies evaluate whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. These amendments are effective for a public business entity for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. Early adoption is permitted under certain circumstances and should be applied on a prospective basis. The Company is currently evaluating the impact of this Statement on its consolidated financial statements. ASU 2016-16 – Income Taxes (Topic 740) Intra-Entity Transfers of Assets Other Than Inventory The FASB issued ASU 2016-16 and requires an entity to recognize the income tax consequences of an intra-entity transfer of an asset other than inventory when the transfer occurs. These amendments are effective for a public business entity for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. The amendments should be applied on a modified retrospective basis through a cumulative-effect adjustment directly to retained earnings as of the beginning of the period of adoption. The Company is currently evaluating the impact of this Statement on its consolidated financial statements. ASU 2016-02: Leases (Topic 842) Section A The FASB issued ASU 2016-02 to increase the transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. These amendments are effective for a public business entity for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. The Company is currently evaluating the impact of this Statement on its consolidated financial statements. Revenue from Contracts with Customers (Topic 606) The FASB and IASB (the Boards) have issued converged standards on revenue recognition. ASU No. 2014-09 which 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. In the year ended December 31, 2016, the FASB issued three new amendments related to Topic 606: 1. ASU 2016-08: Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net) which was issued to add clarification to the implementation guidance on principle versus agent considerations. This amendment does not provide any changes to the previously issued ASU No. 2014-09 and is effective for the same reporting period which was deferred by one year in ASU 2015-14: Revenue From Contracts With Customers (Topic 606), Deferral of the Effective Date. 2. ASU 2016-10: Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing which was issued to clarifying the following two aspects of topic 606; identifying performance obligations and the licensing implementation guidance. This amendment does not provide any changes to the previously issued ASU No. 2014-09 and is effective for the same reporting period which was deferred by one year in ASU 2015-14: Revenue From Contracts With Customers (Topic 606), Deferral of the Effective Date. 3. ASU 2016-11 Revenue Recognition (Topic 605) and Derivatives and Hedging (Topic 815): Rescission of SEC Guidance Because of Accounting Standards Updates 2014-09 and 2014-16 Pursuant to Staff Announcements at the March 3, 2016 EITF Meeting. With this amendment, the SEC Staff is rescinding the following SEC Staff Observer comments that are codified in Topic 605, Revenue Recognition, and Topic 932, Extractive Activities—Oil and Gas, effective upon adoption of Topic 606. This amendment is effective immediately. 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. 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.

Leasehold Improvements and Equi

Leasehold Improvements and Equipment	9 Months Ended
	Sep. 30, 2017
Leasehold Improvements and Equipment [Text Block]	4. Leasehold Improvements and Equipment September 30, December 31, 2017 2016 Accumulated Net Carrying Net Carrying Cost Depreciation Amount Amount Manufacturing equipment $ 3,367 $ 327 $ 3,040 $ 2,429 Laboratory and office equipment 1,364 577 787 807 Computer equipment 84 53 31 23 Leasehold improvements 3,219 554 2,665 2,471 $ 8,034 $ 1,511 $ 6,523 $ 5,730 As at September 30, 2017 no depreciation has been recorded on manufacturing equipment in the amount of $718 as the equipment is not ready for use.

Bank Indebtedness

Bank Indebtedness	9 Months Ended
	Sep. 30, 2017
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$75 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, 2017, the Company has not drawn on its credit facility.

Deferred Revenue

Deferred Revenue	9 Months Ended
	Sep. 30, 2017
Deferred Revenue [Text Block]	6. Deferred Revenue On August 5, 2016, the Company sold its U.S. royalty on future sales of Forfivo XL ® The deferred revenue represents the remaining, unrecognized portion of the payment received for the royalty on future sales in the amount of $6 million less the Q2 royalties recognized in the second quarter of 2016 in the amount of $352 thousand. The deferred revenue will be recognized as other revenue on a straight-line basis until December 31, 2017. 10% of the proceeds were paid to our former development partner, Cary Pharmaceuticals Inc. This amount is included in prepaid expenses and will be recognized as cost of royalty, license and other revenue on a straight-line basis until December 31, 2017

Long-term Debt

Long-term Debt	9 Months Ended
	Sep. 30, 2017
Long-term Debt [Text Block]	7. Long-term Debt The components of the Company’s debt are as follows: September 30, 2017 December 31, 2016 $ $ (in U.S. $ thousands) Term loan facility 2,394 2,636 Secured loan 574 633 Total debt 2,968 3,269 Less: current portion 776 704 Total long-term debt 2,192 2,565 The Company’s term loan facility consists of a total of CAD$4 million bearing interest at the Bank’s prime lending rate plus 2.50% . The term loan is subject to the same security and financial covenants as the bank indebtedness (see note 5). The secured loan has a principal balance authorized of CAD$1 million bearing interest at prime plus 7.3%, reimbursable in monthly principal payments of CAD$17 thousand from January 2017 to March 2021. The loan is secured by a second ranking on all present and future property of the Company. 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. Principal repayments due in each of the next five years are as follows: 2017 $ 208 (CAD260) 2018 757 (CAD945) 2019 757 (CAD945) 2020 757 (CAD945) 2021 489 (CAD610)

Convertible Debentures

Convertible Debentures	9 Months Ended
	Sep. 30, 2017
Convertible Debentures [Text Block]	8. Convertible Debentures On July 12, 2017, the Company closed its previously announced prospectus offering (the “Offering”) of convertible unsecured subordinated debentures of the Corporation (the “Debentures”) for gross aggregate proceeds of CAD$6,838,000. Pursuant to the Offering, the Corporation issued an aggregate principal amount of CAD$6,838,000 of Debentures at a price of CAD$1,000 per Debenture. The Debentures will mature on June 30, 2020 and bear interest at annual rate of 8% payable semi-annually on the last day of June and December of each year, commencing on December 31, 2017. The Debentures will be convertible at the option of the holders at any time prior to the close of business on the earlier of June 30, 2020 and the business day immediately preceding the date specified by the Corporation for redemption of Debentures. The conversion price will be CAD$1.35 (the “Conversion Price”) per common share of the Corporation (“Share”), being a conversion rate of approximately 740 Shares per CAD$1,000 principal amount of Debentures, subject to adjustment in certain events. On August 8, 2017, the Company closed a second tranche of its prospectus Offering of convertible unsecured subordinated debentures of the Corporation for which a first closing took place on July 12, pursuant to which it had raised additional gross proceeds of CAD$762,000. Together with the principal amount of CAD$6,838,000 of Debentures issued on July 12, 2017, the Corporation issued a total aggregate principal amount of CAD$7,600,000 of Debentures at a price of CAD$1,000 per Debenture. The convertible debentures have been recorded as a liability. Total transactions costs in the amount of CAD$1,237,000 were recorded against the liability. The accretion expense for the period ended September 30, 2017 amounts to CAD$74,000. The components of the convertible debentures as at September 30, 2017 are as follows: September 30, 2017 $ (in U.S. $ thousands) Face value of convertible debentures $ 6,090 Transaction costs (991 ) Accretion 59 Convertible debentures $ 5,158 The accrued interest on the convertible debentures as September 30, 2017 amounts to $107 and is recorded in accounts payable and accrued liabilities.

Capital Stock

Capital Stock	9 Months Ended
	Sep. 30, 2017
Capital Stock [Text Block]	9. Capital Stock September 30, December 31, 2017 2016 Authorized - 100,000,000 common shares of $0.00001 par value 20,000,000 preferred shares of $0.00001 par value Issued - 66,931,467 (December 31, 2016 - 64,812,020) common shares $ 1 $ 1

Additional Paid-In Capital

Additional Paid-In Capital	9 Months Ended
	Sep. 30, 2017
Additional Paid-In Capital [Text Block]	10. Additional Paid-In Capital Stock options On August 31, 2017, 359,818 options to purchase common stock were granted to employees under the 2016 Stock Option Plan. The options have an exercise price of $0.77. The options granted vest over a period of 2 years at the rate of 25% every six months and expire 10 years after the grant date. The stock options were accounted for at their fair value, as determined by the Black-Scholes valuation model, of approximately $120 thousand. On January 18, 2017, 300,000 options to purchase common stock were granted to non-employee directors under the 2016 Stock Option Plan. The options have an exercise price of $0.89. The options vest immediately and expire 10 years after the grant date. The stock options were accounted for at their fair value, as determined by the Black-Scholes valuation model, of approximately $114 thousand. During the nine-month period ended September 30, 2017 a total of 135,000 stock options were exercised for 135,000 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. No stock options were exercised during the nine-month period ended September 30, 2016. Compensation expenses for stock-based compensation of $267 thousand and $141 thousand were recorded during the nine-month periods ended September 30, 2017 and 2016, respectively. An amount of $262 thousand expensed in the nine-month period of 2017 relates to stock options granted to employees and directors and an amount of $5 thousand relates to stock options granted to a consultant. The entire amount expensed in the nine-month period of 2016 relates to stock options granted to employees and directors. As at September 30, 2017, the Company has $243 thousand (2016 - $295 thousand) of unrecognized stock-based compensation, of which $6 thousand (2016 - $12) relates to the issuance of options to a consultant in 2016. Warrants During the nine-month period ended September 30, 2017 a total of 1,984,447 warrants were exercised for 1,984,447 common shares having a par value of $Nil in aggregate, for cash consideration of approximately $1,120 thousand, resulting in an increase in additional paid-in capital of approximately $1,120 thousand. During the nine-month period ended September 30, 2016, a total of 1,056,765 warrants were exercised for 1,056,765 common shares having a par value of $0 thousand in aggregate, for cash consideration of $596 thousand, resulting in an increase in additional paid-in capital of $596 thousand.

Related Party Transactions

Related Party Transactions	9 Months Ended
	Sep. 30, 2017
Related Party Transactions [Text Block]	11. Related Party Transactions Included in management salaries are $3 (2016 - $2 thousand) for options granted to the Chief Executive Officer, $34 thousand (2016 - $45 thousand) for options granted to the Chief Financial Officer, $3 thousand (2016 - $9 thousand) for options granted to the former Vice President, Operations, $5 thousand (2016 - $4 thousand) for options granted to the Vice-President, Research and Development, $26 thousand (2016 - $1) for options granted to Vice-President, Business and Corporate Development and $Nil thousand (2016 - $21 thousand) for options granted to the former Vice President, Corporate Development under the 2016 Stock Option Plan and $128 thousand (2016 - $45 thousand) for options granted to non-employee directors. Also included in management salaries are director fees of $206 thousand (2016 - $137 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 (Loss) Earnin

Basic and Diluted (Loss) Earnings per Common Share	9 Months Ended
	Sep. 30, 2017
Basic and Diluted (Loss) Earnings per Common Share [Text Block]	12. Basic and Diluted (Loss) Earnings per Common Share Basic and diluted (loss) earnings 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, 2017
Leasehold Improvements and Equipment [Policy Text Block]	Leasehold Improvements and Equipment Leasehold improvements and equipment are recorded at cost. Provisions for depreciation are based on their estimated useful lives using the methods as follows: On the declining balance method - Laboratory and office equipment 20% Computer equipment 30% On the straight-line method - Leasehold improvements over the lease term Manufacturing equipment 5 – 10 years
ASU 2017-09 Stock Compensation (Topic 718) Scope of Modification Accounting [Policy Text Block]	ASU 2017-09 – Stock Compensation (Topic 718) Scope of Modification Accounting In May 2016, the FASB issued ASU 2017-09 which provides guidance on determining which changes to the terms and conditions of share-based payment awards require an entity to apply modification accounting under Topic 718. The statement is effective for annual periods beginning after December 15, 2017. Early adoption is permitted in any interim or annual period for which financial statements have not yet been issued. The Company is currently evaluating the impact of this Statement on its consolidated financial statements.
ASU 2016-18 Statement of Cash Flows (Topic 230) Restricted Cash [Policy Text Block]	ASU 2016-18 – Statement of Cash Flows (Topic 230) Restricted Cash In November 2016, the FASB issued ASU 2016-18 which requires that the statement of cash flows explain the change during the period in the total cash, cash equivalents, and amounts generally described as restricted or restricted cash equivalents. The statement is effective for annual periods beginning after December 15, 2017, and interim periods within those annual periods. Early adoption is permitted in any interim or annual period and should be applied on a retrospective basis. The Company is currently evaluating the impact of this Statement on its consolidated financial statements.
ASU 2016-15 Statement of Cash Flows (Topic 230) Classification of Certain Cash Receipts and Cash Payments [Policy Text Block]	ASU 2016-15 – Statement of Cash Flows (Topic 230) Classification of Certain Cash Receipts and Cash Payments In August 2016, the FASB issued ASU 2016-15 which clarifies how certain cash receipts and payments are to be presented in the Statement of cash flows. The statement is effective for annual periods beginning after December 15, 2017, and interim periods within those annual periods. Early adoption is permitted in any interim or annual period, with any adjustments reflected as of the beginning of the fiscal year of adoption. The Company is currently evaluating the impact of this Statement on its consolidated financial statements.
ASU 2016-01 Financial Instruments Overall (Subtopic 825-10) Recognition and Measurement of Financial Assets and Financial Liabilities [Policy Text Block]	ASU 2016-01 – Financial Instruments – Overall (Subtopic 825-10) Recognition and Measurement of Financial Assets and Financial Liabilities In January 2016, the FASB issued ASU 2016-01, which will significantly change practice for all entities. The targeted amendments to existing guidance are expected to include: 1. Equity investments that do not result in consolidation and are not accounted for under the equity method would be measured at fair value through net income, unless they qualify for the proposed practicability exception for investments that do not have readily determinable fair values. 2. Changes in instrument-specific credit risk for financial liabilities that are measured under the fair value option would be recognized in other comprehensive income. 3. Entities would make the assessment of the realizability of a deferred tax asset (DTA) related to an available- for-sale (AFS) debt security in combination with the entity’s other DTAs. The guidance would eliminate one method that is currently acceptable for assessing the realizability of DTAs related to AFS debt securities. That is, an entity would no longer be able to consider its intent and ability to hold debt securities with unrealized losses until recovery. 4. Disclosure of the fair value of financial instruments measured at amortized cost would no longer be required for entities that are not public business entities. For public business entities, the amendments in this Update are effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. The Company is currently evaluating the impact of this Statement on its consolidated financial statements.
ASU 2017-04 Intangibles Goodwill and Other (Topic 350) Simplifying the Test for Goodwill Impairment [Policy Text Block]	ASU 2017-04 – Intangibles – Goodwill and Other (Topic 350) Simplifying the Test for Goodwill Impairment The FASB issued ASU 2017-04 which eliminates Step 2 from the goodwill impairment test and eliminates the requirements for any reporting unit with a zero or negative carrying amount to perform a qualitative assessment. These amendments are effective for a public business entity for fiscal years beginning after December 15, 2019. Early adoption is permitted in any interim or annual period and should be applied on a retrospective basis. The Company is currently evaluating the impact of this Statement on its consolidated financial statements.
ASU 2017-01 - Business Combinations (Topic 805) Clarifying the Definition of a Business [Policy Text Block]	ASU 2017-01 - Business Combinations (Topic 805) - Clarifying the Definition of a Business The FASB issued ASU 2017-01 which clarifies the definition of a business and is intended to help companies evaluate whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. These amendments are effective for a public business entity for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. Early adoption is permitted under certain circumstances and should be applied on a prospective basis. The Company is currently evaluating the impact of this Statement on its consolidated financial statements.
ASU 2016-16 Income Taxes (Topic 740) Intra-Entity Transfers of Assets Other Than Inventory [Policy Text Block]	ASU 2016-16 – Income Taxes (Topic 740) Intra-Entity Transfers of Assets Other Than Inventory The FASB issued ASU 2016-16 and requires an entity to recognize the income tax consequences of an intra-entity transfer of an asset other than inventory when the transfer occurs. These amendments are effective for a public business entity for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. The amendments should be applied on a modified retrospective basis through a cumulative-effect adjustment directly to retained earnings as of the beginning of the period of adoption. The Company is currently evaluating the impact of this Statement on its consolidated financial statements.
ASU 2016-02 Leases (Topic 842) Section A [Policy Text Block]	ASU 2016-02: Leases (Topic 842) Section A The FASB issued ASU 2016-02 to increase the transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. These amendments are effective for a public business entity for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. The Company is currently evaluating the impact of this Statement on its consolidated financial statements.
Revenue from Contracts with Customers (Topic 606) [Policy Text Block]	Revenue from Contracts with Customers (Topic 606) The FASB and IASB (the Boards) have issued converged standards on revenue recognition. ASU No. 2014-09 which 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. In the year ended December 31, 2016, the FASB issued three new amendments related to Topic 606: 1. ASU 2016-08: Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net) which was issued to add clarification to the implementation guidance on principle versus agent considerations. This amendment does not provide any changes to the previously issued ASU No. 2014-09 and is effective for the same reporting period which was deferred by one year in ASU 2015-14: Revenue From Contracts With Customers (Topic 606), Deferral of the Effective Date. 2. ASU 2016-10: Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing which was issued to clarifying the following two aspects of topic 606; identifying performance obligations and the licensing implementation guidance. This amendment does not provide any changes to the previously issued ASU No. 2014-09 and is effective for the same reporting period which was deferred by one year in ASU 2015-14: Revenue From Contracts With Customers (Topic 606), Deferral of the Effective Date. 3. ASU 2016-11 Revenue Recognition (Topic 605) and Derivatives and Hedging (Topic 815): Rescission of SEC Guidance Because of Accounting Standards Updates 2014-09 and 2014-16 Pursuant to Staff Announcements at the March 3, 2016 EITF Meeting. With this amendment, the SEC Staff is rescinding the following SEC Staff Observer comments that are codified in Topic 605, Revenue Recognition, and Topic 932, Extractive Activities—Oil and Gas, effective upon adoption of Topic 606. This amendment is effective immediately. 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. 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.

Significant Accounting Polici20

Significant Accounting Policies (Tables)	9 Months Ended
	Sep. 30, 2017
Schedule of Estimated Useful Lives of Leasehold Improvements and Equipment [Table Text Block]	On the declining balance method - Laboratory and office equipment 20% Computer equipment 30% On the straight-line method - Leasehold improvements over the lease term Manufacturing equipment 5 – 10 years

Leasehold Improvements and Eq21

Leasehold Improvements and Equipment (Tables)	9 Months Ended
	Sep. 30, 2017
Schedule of Leasehold Improvements and Equipment [Table Text Block]	September 30, December 31, 2017 2016 Accumulated Net Carrying Net Carrying Cost Depreciation Amount Amount Manufacturing equipment $ 3,367 $ 327 $ 3,040 $ 2,429 Laboratory and office equipment 1,364 577 787 807 Computer equipment 84 53 31 23 Leasehold improvements 3,219 554 2,665 2,471 $ 8,034 $ 1,511 $ 6,523 $ 5,730

Long-term Debt (Tables)

Long-term Debt (Tables)	9 Months Ended
	Sep. 30, 2017
Term loan [Table Text Block]	September 30, 2017 December 31, 2016 $ $ (in U.S. $ thousands) Term loan facility 2,394 2,636 Secured loan 574 633 Total debt 2,968 3,269 Less: current portion 776 704 Total long-term debt 2,192 2,565
Term loan principal repayments [Table Text Block]	2017 $ 208 (CAD260) 2018 757 (CAD945) 2019 757 (CAD945) 2020 757 (CAD945) 2021 489 (CAD610)

Convertible Debentures (Tables)

Convertible Debentures (Tables)	9 Months Ended
	Sep. 30, 2017
Schedule of Convertible Debt [Table Text Block]	September 30, 2017 $ (in U.S. $ thousands) Face value of convertible debentures $ 6,090 Transaction costs (991 ) Accretion 59 Convertible debentures $ 5,158

Capital Stock (Tables)

Capital Stock (Tables)	9 Months Ended
	Sep. 30, 2017
Schedule of Stock by Class [Table Text Block]	September 30, December 31, 2017 2016 Authorized - 100,000,000 common shares of $0.00001 par value 20,000,000 preferred shares of $0.00001 par value Issued - 66,931,467 (December 31, 2016 - 64,812,020) common shares $ 1 $ 1

Leasehold Improvements and Eq25

Leasehold Improvements and Equipment (Narrative) (Details)	9 Months Ended
	Sep. 30, 2017USD ($)
Leasehold Improvements And Equipment 1	$ 718

Bank Indebtedness (Narrative) (

Bank Indebtedness (Narrative) (Details) CAD in Thousands	9 Months Ended
	Sep. 30, 2017CAD
Bank Indebtedness 1	CAD 250
Bank Indebtedness 2	CAD 75
Bank Indebtedness 3	2.00%
Bank Indebtedness 4	50.00%

Deferred Revenue (Narrative) (D

Deferred Revenue (Narrative) (Details) $ in Thousands	9 Months Ended
	Sep. 30, 2017USD ($)
Deferred Revenue 1	$ 6,000
Deferred Revenue 2	$ 6,000
Deferred Revenue 3	100.00%
Deferred Revenue 4	100.00%
Deferred Revenue 5	$ 2,000
Deferred Revenue 6	$ 15,000
Deferred Revenue 7	35.00%
Deferred Revenue 8	$ 6,000
Deferred Revenue 9	$ 352
Deferred Revenue 10	10.00%

Long-term Debt (Narrative) (Det

Long-term Debt (Narrative) (Details) CAD in Thousands	9 Months Ended
	Sep. 30, 2017CAD
Long-term Debt 1	CAD 4,000
Long-term Debt 2	2.50%
Long-term Debt 3	CAD 1,000
Long-term Debt 4	7.30%
Long-term Debt 5	CAD 17

Convertible Debentures (Narrati

Convertible Debentures (Narrative) (Details)	9 Months Ended
	Sep. 30, 2017USD ($)	Sep. 30, 2017CAD
Convertible Debentures 1		CAD 6,838,000
Convertible Debentures 2		6,838,000
Convertible Debentures 3		CAD 1,000
Convertible Debentures 4	8.00%	8.00%
Convertible Debentures 5		CAD 1.35
Convertible Debentures 6	740	740
Convertible Debentures 7		CAD 1,000
Convertible Debentures 8		762,000
Convertible Debentures 9		6,838,000
Convertible Debentures 10		7,600,000
Convertible Debentures 11		1,000
Convertible Debentures 12		1,237,000
Convertible Debentures 13		CAD 74,000
Convertible Debentures 14 | $	$ 107

Additional Paid-In Capital (Nar

Additional Paid-In Capital (Narrative) (Details)	9 Months Ended
	Sep. 30, 2017USD ($)yrshares
Additional Paid-in Capital 1 | shares	359,818
Additional Paid-in Capital 2	$ 0.77
Additional Paid-in Capital 3 | yr	2
Additional Paid-in Capital 4	25.00%
Additional Paid-in Capital 5 | yr	10
Additional Paid-in Capital 6	$ 120,000
Additional Paid-in Capital 7 | shares	300,000
Additional Paid-in Capital 8	$ 0.89
Additional Paid-in Capital 9 | yr	10
Additional Paid-in Capital 10	$ 114,000
Additional Paid-in Capital 11 | shares	135,000
Additional Paid-in Capital 12 | shares	135,000
Additional Paid-in Capital 13	$ 0
Additional Paid-in Capital 14	62,000
Additional Paid-in Capital 15	62,000
Additional Paid-in Capital 16	267,000
Additional Paid-in Capital 17	141,000
Additional Paid-in Capital 18	262,000
Additional Paid-in Capital 19	5,000
Additional Paid-in Capital 20	243,000
Additional Paid-in Capital 21	295,000
Additional Paid-in Capital 22	6,000
Additional Paid-in Capital 23	$ 12
Additional Paid-in Capital 24 | shares	1,984,447
Additional Paid-in Capital 25 | shares	1,984,447
Additional Paid-in Capital 26	$ 0
Additional Paid-in Capital 27	1,120,000
Additional Paid-in Capital 28	$ 1,120,000
Additional Paid-in Capital 29 | shares	1,056,765
Additional Paid-in Capital 30 | shares	1,056,765
Additional Paid-in Capital 31	$ 0
Additional Paid-in Capital 32	596,000
Additional Paid-in Capital 33	$ 596,000

Related Party Transactions (Nar

Related Party Transactions (Narrative) (Details)	9 Months Ended
	Sep. 30, 2017USD ($)
Related Party Transactions 1	$ 3
Related Party Transactions 2	2,000
Related Party Transactions 3	34,000
Related Party Transactions 4	45,000
Related Party Transactions 5	3,000
Related Party Transactions 6	9,000
Related Party Transactions 7	5,000
Related Party Transactions 8	4,000
Related Party Transactions 9	26,000
Related Party Transactions 10	1
Related Party Transactions 11	0
Related Party Transactions 12	21,000
Related Party Transactions 13	128,000
Related Party Transactions 14	45,000
Related Party Transactions 15	206,000
Related Party Transactions 16	$ 137,000

Schedule of Estimated Useful Li

Schedule of Estimated Useful Lives of Leasehold Improvements and Equipment (Details)	9 Months Ended
	Sep. 30, 2017yr
Significant Accounting Policies Schedule Of Estimated Useful Lives Of Leasehold Improvements And Equipment 1	20.00%
Significant Accounting Policies Schedule Of Estimated Useful Lives Of Leasehold Improvements And Equipment 2	30.00%
Significant Accounting Policies Schedule Of Estimated Useful Lives Of Leasehold Improvements And Equipment 3	5
Significant Accounting Policies Schedule Of Estimated Useful Lives Of Leasehold Improvements And Equipment 4	10

Schedule of Leasehold Improveme

Schedule of Leasehold Improvements and Equipment (Details)	9 Months Ended
	Sep. 30, 2017USD ($)
Leasehold Improvements And Equipment Schedule Of Leasehold Improvements And Equipment 1	$ 3,367
Leasehold Improvements And Equipment Schedule Of Leasehold Improvements And Equipment 2	327
Leasehold Improvements And Equipment Schedule Of Leasehold Improvements And Equipment 3	3,040
Leasehold Improvements And Equipment Schedule Of Leasehold Improvements And Equipment 4	2,429
Leasehold Improvements And Equipment Schedule Of Leasehold Improvements And Equipment 5	1,364
Leasehold Improvements And Equipment Schedule Of Leasehold Improvements And Equipment 6	577
Leasehold Improvements And Equipment Schedule Of Leasehold Improvements And Equipment 7	787
Leasehold Improvements And Equipment Schedule Of Leasehold Improvements And Equipment 8	807
Leasehold Improvements And Equipment Schedule Of Leasehold Improvements And Equipment 9	84
Leasehold Improvements And Equipment Schedule Of Leasehold Improvements And Equipment 10	53
Leasehold Improvements And Equipment Schedule Of Leasehold Improvements And Equipment 11	31
Leasehold Improvements And Equipment Schedule Of Leasehold Improvements And Equipment 12	23
Leasehold Improvements And Equipment Schedule Of Leasehold Improvements And Equipment 13	3,219
Leasehold Improvements And Equipment Schedule Of Leasehold Improvements And Equipment 14	554
Leasehold Improvements And Equipment Schedule Of Leasehold Improvements And Equipment 15	2,665
Leasehold Improvements And Equipment Schedule Of Leasehold Improvements And Equipment 16	2,471
Leasehold Improvements And Equipment Schedule Of Leasehold Improvements And Equipment 17	8,034
Leasehold Improvements And Equipment Schedule Of Leasehold Improvements And Equipment 18	1,511
Leasehold Improvements And Equipment Schedule Of Leasehold Improvements And Equipment 19	6,523
Leasehold Improvements And Equipment Schedule Of Leasehold Improvements And Equipment 20	$ 5,730

Term loan (Details)

Term loan (Details)	9 Months Ended
	Sep. 30, 2017USD ($)
Long-term Debt Term Loan 1	$ 2,394
Long-term Debt Term Loan 2	2,636
Long-term Debt Term Loan 3	574
Long-term Debt Term Loan 4	633
Long-term Debt Term Loan 5	2,968
Long-term Debt Term Loan 6	3,269
Long-term Debt Term Loan 7	776
Long-term Debt Term Loan 8	704
Long-term Debt Term Loan 9	2,192
Long-term Debt Term Loan 10	$ 2,565

Term loan principal repayments

Term loan principal repayments (Details) - 9 months ended Sep. 30, 2017	USD ($)	CAD
Long-term Debt Term Loan Principal Repayments 1 | $	$ 208
Long-term Debt Term Loan Principal Repayments 2 | CAD		CAD 260
Long-term Debt Term Loan Principal Repayments 3 | $	757
Long-term Debt Term Loan Principal Repayments 4 | CAD		945
Long-term Debt Term Loan Principal Repayments 5 | $	757
Long-term Debt Term Loan Principal Repayments 6 | CAD		945
Long-term Debt Term Loan Principal Repayments 7 | $	757
Long-term Debt Term Loan Principal Repayments 8 | CAD		945
Long-term Debt Term Loan Principal Repayments 9 | $	$ 489
Long-term Debt Term Loan Principal Repayments 10 | CAD		CAD 610

Schedule of Convertible Debt (D

Schedule of Convertible Debt (Details)	9 Months Ended
	Sep. 30, 2017USD ($)
Convertible Debentures Schedule Of Convertible Debt 1	$ 6,090
Convertible Debentures Schedule Of Convertible Debt 2	(991)
Convertible Debentures Schedule Of Convertible Debt 3	59
Convertible Debentures Schedule Of Convertible Debt 4	$ 5,158

Schedule of Stock by Class (Det

Schedule of Stock by Class (Details)	9 Months Ended
	Sep. 30, 2017USD ($)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	$ 66,931,467
Capital Stock Schedule Of Stock By Class 6 | shares	64,812,020
Capital Stock Schedule Of Stock By Class 7	$ 1
Capital Stock Schedule Of Stock By Class 8	$ 1