Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2019 | May 07, 2019 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | ProtoKinetix, Inc. | |
Entity Central Index Key | 0001128189 | |
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2019 | |
Trading Symbol | pktx | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Non-accelerated Filer | |
Entity Current Reporting Status | Yes | |
Entity Small Business | true | |
Entity Ex Transition Period | false | |
Is Entity Emerging Growth Company? | false | |
Entity Common Stock, Shares Outstanding | 264,535,766 | |
Document Fiscal Period Focus | Q1 | |
Document Fiscal Year Focus | 2019 |
BALANCE SHEETS (Unaudited)
BALANCE SHEETS (Unaudited) - USD ($) | Mar. 31, 2019 | Dec. 31, 2018 |
Current Assets | ||
Cash | $ 24,108 | $ 136,029 |
Prepaid expenses and deposits (Notes 3 and 9) | 21,744 | 1,050 |
Total current assets | 45,852 | 137,079 |
Intangible assets (Note 4) | 188,913 | 187,771 |
Total assets | 234,765 | 324,850 |
Current Liabilities | ||
Accounts payable and accrued liabilities | 70,652 | 78,885 |
Total current liabilities | 70,652 | 78,885 |
Stockholders' Equity | ||
Common stock, $0.0000053 par value; 400,000,000 common shares authorized; 260,535,766 and 259,785,766 shares issued and outstanding as at March 31, 2019 and December 31, 2018 respectively (Note 7) | 1,393 | 1,389 |
Additional paid-in capital | 31,895,416 | 31,594,822 |
Accumulated deficit | (31,732,696) | (31,350,246) |
Total stockholders' equity | 164,113 | 245,965 |
Total liabilities and stockholders' equity | $ 234,765 | $ 324,850 |
BALANCE SHEETS (Unaudited) (Par
BALANCE SHEETS (Unaudited) (Parenthetical) - $ / shares | Mar. 31, 2019 | Dec. 31, 2018 |
Statement of Financial Position [Abstract] | ||
Common Stock, Par Value Per Share | $ 0.0000053 | $ 0.0000053 |
Common Stock, Shares Authorized | 400,000,000 | 400,000,000 |
Common Stock, Shares, Issued | 260,535,766 | 259,785,766 |
Common Stock, Shares, Outstanding | 260,535,766 | 259,785,766 |
STATEMENTS OF OPERATIONS (Unaud
STATEMENTS OF OPERATIONS (Unaudited) - USD ($) | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
EXPENSES | ||
Amortization - intangible assets | $ 750 | $ 750 |
General and administrative | 33,930 | 17,437 |
Professional fees | 28,682 | 39,139 |
Research and development | 63,472 | 84,616 |
Share-based compensation | 255,598 | 163,346 |
OTHER ITEM | ||
Foreign exchange loss | (18) | (1,283) |
Loss for the period | $ (382,450) | $ (306,571) |
Loss per common share (basic and diluted) | $ 0 | $ 0 |
Weighted average number of common shares outstanding (basic and diluted) | 260,280,210 | 254,263,774 |
STATEMENT OF STOCKHOLDERS' EQUI
STATEMENT OF STOCKHOLDERS' EQUITY (Unaudited) - USD ($) | Common Stock | Additional Paid-In Capital | Accumulated Deficit | Total |
Beginning Balance, Shares at Dec. 31, 2017 | 251,352,433 | |||
Beginning Balance, Amount at Dec. 31, 2017 | $ 1,344 | $ 30,506,094 | $ (30,133,903) | $ 373,535 |
Issuance of common stock pursuant to private placement offering, shares | 1,000,000 | |||
Issuance of common stock pursuant to private placement offering, amount | $ 5 | 49,995 | 50,000 | |
Issuance of common stock pursuant to settlement of promissory notes, shares | 2,359,240 | |||
Issuance of common stock pursuant to settlement of promissory notes, amount | $ 13 | 117,949 | 117,962 | |
Fair value of compensatory options issued | 163,346 | 163,346 | ||
Loss for the period | (306,571) | (306,571) | ||
Ending Balance, Shares at Mar. 31, 2018 | 254,711,673 | |||
Ending Balance, Amount at Mar. 31, 2018 | $ 1,362 | 30,837,384 | (30,440,474) | 398,272 |
Beginning Balance, Shares at Dec. 31, 2018 | 259,785,766 | |||
Beginning Balance, Amount at Dec. 31, 2018 | $ 1,389 | 31,594,822 | (31,350,246) | 245,965 |
Issuance of common stock pursuant to private placement offering, shares | 750,000 | |||
Issuance of common stock pursuant to private placement offering, amount | $ 4 | 44,996 | 45,000 | |
Fair value of compensatory options issued | 255,598 | 255,598 | ||
Loss for the period | (382,450) | (382,450) | ||
Ending Balance, Shares at Mar. 31, 2019 | 260,535,766 | |||
Ending Balance, Amount at Mar. 31, 2019 | $ 1,393 | $ 31,895,416 | $ (31,732,696) | $ 164,113 |
STATEMENTS OF CASH FLOWS (Unaud
STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
CASH FLOWS USED IN OPERATING ACTIVITIES | ||
Net loss for the period | $ (382,450) | $ (306,571) |
Adjustments to reconcile net loss to cash used in operating activities: | ||
Amortization - intangible assets | 750 | 750 |
Share-based compensation | 255,598 | 163,346 |
Interest accrued | 0 | 306 |
Changes in operating assets and liabilities: | ||
Prepaid expenses and deposits | (20,694) | 3,452 |
Accounts payable and accrued liabilities | (8,233) | (19,175) |
Net cash used in operating activities | (155,029) | (157,892) |
CASH FLOWS USED IN INVESTING ACTIVITIES | ||
Purchase of Intangible assets | (1,892) | (2,903) |
Net cash used in investing activities | (1,892) | (2,903) |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Issuance of common stock for cash | 45,000 | 50,000 |
Net cash from financing activities | 45,000 | 50,000 |
Net change in cash | (111,921) | (110,795) |
Cash, beginning of period | 136,029 | 302,942 |
Cash, end of period | 24,108 | 192,147 |
Cash paid for interest | 0 | 0 |
Cash paid for income taxes | 0 | 0 |
Supplementary information - non-cash transactions: | ||
Common stock issued to settle promissory notes | $ 0 | $ 117,962 |
1. Basis of Presentation - Goin
1. Basis of Presentation - Going Concern Uncertainties | 3 Months Ended |
Mar. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation - Going Concern Uncertainties | Note 1. Basis of Presentation – Going Concern Uncertainties ProtoKinetix, Incorporated (the "Company"), a development stage company, was incorporated under the laws of the State of Nevada on December 23, 1999. The Company is a medical research company whose mission is the advancement of human health care. The Company is currently researching the benefits and feasibility of synthesized Antifreeze Glycoproteins ("AFGP") or anti-aging glycoproteins, trademarked AAGP. During the year ended December 31, 2015, the Company acquired certain patents and rights for cash consideration of $30,000 (25,000 Euros), as well as additional patent applications for cash consideration of $10,000 and 6,000,000 share purchase warrants with a fair value of $25,000 (Note 4). The Company's financial statements are prepared consistent with accounting principles generally accepted in the United States applicable to a going concern. The Company has not developed a commercially viable product, has not generated any significant revenue to date, and has incurred losses since inception, resulting in a net accumulated deficit at March 31, 2019. These factors raise substantial doubt about the Company's ability to continue as a going concern. The Company needs additional working capital to continue its medical research or to be successful in any future business activities and continue to pay its liabilities. Therefore, continuation of the Company as a going concern is dependent upon obtaining the additional working capital necessary to accomplish its objective. Management is presently engaged in seeking additional working capital through equity financing or related party loans. The accompanying financial statements do not include any adjustments to the recorded assets or liabilities that might be necessary should the Company fail in any of the above objectives and is unable to operate for the coming year. |
2. Summary of Significant Accou
2. Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2019 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Note 2. Summary of Significant Accounting Policies Basis of Presentation The accompanying unaudited financial statements have been prepared by the Company in conformity with accounting principles generally accepted in the United States of America ("US GAAP") applicable to interim financial information and with the rules and regulations of the United States Securities and Exchange Commission. Accordingly, certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles have been condensed, or omitted, pursuant to such rules and regulations. In the opinion of management, the unaudited interim financial statements include all adjustments necessary for the fair presentation of the results of the interim periods presented. All adjustments are of a normal recurring nature, except as otherwise noted below. These financial statements should be read in conjunction with the Company's audited financial statements and notes thereto for the year ended December 31, 2018, included in the Company's Annual Report on Form 10-K, filed March 12, 2019, with the Securities and Exchange Commission. The results of operations for the interim periods are not necessarily indicative of the results of operations for any other interim period or for a full fiscal year. Use of Estimates Preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. The more significant accounting estimates inherent in the preparation of the Company's financial statements include estimates as to valuation of equity related instruments issued, deferred income taxes, and the useful life and impairment of intangible assets. Cash Cash consists of funds held in checking accounts. Cash balances may exceed federally insured limits from time to time. Fair Value of Financial Instruments Financial instruments, which includes cash, and accounts payable and accrued liabilities, are carried at amortized cost, which management believes approximates fair value due to the short-term nature of these instruments. The Company measures the fair value of financial assets and liabilities pursuant to ASC 820 "Fair Value Measurements and Disclosures" which defines fair value, establishes a framework for measuring fair value, and expands disclosures about fair value measurements. ASC 820 establishes a fair value hierarchy, which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The policy describes three levels of inputs that may be used to measure fair value: Level 1 – quoted prices in active markets for identical assets or liabilities. Level 2 – quoted prices for similar assets and liabilities in active markets or inputs that are observable. Level 3 – inputs that are unobservable (for example cash flow modeling inputs based on assumptions). Level 1 inputs are used to measure cash. At March 31, 2019 there were no other assets or liabilities subject to additional disclosure. Income Taxes The Company accounts for income taxes following the assets and liability method in accordance with the ASC 740 "Income Taxes." Under such method, deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. The Company applies the accounting guidance issued to address the accounting for uncertain tax positions. This guidance clarifies the accounting for income taxes, by prescribing a minimum recognition threshold a tax position is required to meet before being recognized in the financial statements as well as provides guidance on derecognition, measurement, classification, interest and penalties, accounting in interim periods, disclosure and transition. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years that the asset is expected to be recovered or the liability settled. Intangible assets – patent and patent application costs The Company owns intangible assets consisting of certain patents and patent applications. Intangible assets acquired separately are measured on initial recognition at cost. Following initial recognition, intangible assets are carried at cost less any accumulated amortization and any accumulated impairment losses. Subsequent expenditures are capitalized only when they increase the future economic benefits embodied in the specific asset to which they relate. All other expenditures are recognized in profit or loss as incurred. As at March 31, 2019, the Company does not hold any intangible assets with indefinite lives. Intangible assets with finite lives are amortized over the useful economic life and assessed for impairment whenever there is an indication that the intangible asset may be impaired. The amortization method and amortization period of an intangible asset with a finite life is reviewed at least annually. Changes in the expected useful life or the expected pattern of consumption of future economic benefits embodied in the asset is accounted for by changing the amortization period or method, as appropriate, and are treated as changes in accounting estimates. Amortization is recognized in profit or loss on a straight-line basis over the estimated useful lives of the Company's patents, whereas no amortization has been recognized on the patent application costs as at March 31, 2019. Research and Development Costs Research and development costs are expensed as incurred. Loss per Share and Potentially Dilutive Securities Basic loss per share is computed by dividing the net loss available to common stockholders by the weighted average number of common shares outstanding in the period. Diluted loss per share takes into consideration common shares outstanding (computed under basic earnings per share) and potentially dilutive securities. The effect of 58,600,000 stock options (March 31, 2018 – 43,900,000), and 6,000,000 warrants (March 31, 2018 – 6,500,000) were not included in the computation of diluted earnings per share for all periods presented because it was anti-dilutive due to the Company's losses. Share-Based Compensation The Company has granted warrants and options to purchase shares of the Company's common stock to various parties for consulting services. The fair values of the warrants and options issued have been estimated using the Black-Scholes Option Pricing Model. The Company accounts for stock compensation with persons classified as employees for accounting purposes in accordance with ASC 718 "Compensation – Stock Compensation", which recognizes awards at fair value on the date of grant and recognition of compensation over the service period for awards expected to vest. Cliff Vesting is used and awards vest on the last day of the vesting period. The fair value of stock options is determined using the Black-Scholes Option Pricing Model. The fair value of common shares issued for services is determined based on the Company's stock price on the date of issuance. The Company accounts for stock compensation arrangements with persons classified as non-employees for accounting purposes in accordance with ASC 505-50 "Stock-Based Transactions with Nonemployees", which requires that such equity instruments are recorded at their fair value on the measurement date. The measurement of share-based compensation is subject to periodic adjustment as the underlying instruments vest. The fair value of stock options is estimated using the Black-Scholes Option Pricing Model and the compensation charges are amortized over the vesting period. Common stock Common stock issued for non-monetary consideration are recorded at their fair value on the measurement date and classified as equity. The measurement date is defined as the earliest of the date at which the commitment for performance by the counterparty to earn the common shares is reached or the date at which the counterparty's performance is complete. Transaction costs directly attributable to the issuance of common stock, units and stock options are recognized as a deduction from equity, net of any tax effects. Related Party Transactions A related party is generally defined as (i) any person that holds 10% or more of the Company's securities and their immediate families, (ii) the Company's management, (iii) someone that directly or indirectly controls, is controlled by or is under common control with the Company, or (iv) anyone who can significantly influence the financial and operating decisions of the Company. A transaction is considered to be a related party transaction when there is a transfer of resources or obligations between related parties. Recent Accounting Pronouncements In February 2016, the FASB issued No. ASU 2016-02, Leases (Topic 842), to increase transparency and comparability among organizations by requiring the recognition of a right-of-use assets and lease liabilities for most lease arrangements on the balance sheet. Under the standard, disclosures are required to meet the objective of enabling users of financial statements to assess the amount, timing, and uncertainty of cash flows arising from leases. The new standard is effective for fiscal years beginning after December 15, 2018, with early adoption permitted. The standard permits two transition methods, (1) to apply the new lease requirements at the beginning of the earliest period presented, or (2) to apply the new lease requirements at the effective date. Under both transition methods, there is a cumulative effect adjustment. ASU 2016-02 was originally required to be adopted on a modified retrospective basis, meaning the new leasing model would need to be applied to the earliest year presented in the financial statements and thereafter. However, in July 2018, the FASB issued ASU No. 2018-11, Leases (Topic 842): Targeted Improvements, which permits companies to apply the transition provisions of the lease accounting standard at its effective date (i.e. comparative financial statements are not required). Furthermore, in December 2018, the FASB issued ASU No. 2018-20, Leases (Topic 842): Narrow Scope Improvements for Lessors, which clarifies that lessor costs, paid directly to a third-party by a lessee on behalf of the lessor, are no longer required to be recognized in the lessor's financial statements. The Company adopted the new lease requirements on January 1, 2019, electing to use the practical expedients permitted under the transition guidance within the new standard. The adoption of this standard did not have a material impact on the Company's financial statements. In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, requiring certain changes to the recognition and measurement as well as disclosure of incurred and expected credit losses. The standard will become effective for the Company beginning January 1, 2020. In November 2018, the FASB issued ASU 2018-19 to clarify certain aspects of the new current expected credit losses impairment model in ASU 2016-13. ASU 2018-19 points out that operating lease receivables are within the scope of ASC 842 rather than ASC 326. The Company is currently evaluating the impact of the adoption of this standard on the financial statements. In June 2018, the FASB issued ASU No. 2018-07, Compensation—Stock Compensation (Topic 718): Improvements to Nonemployee ShareBased Payment Accounting, or “ASU 2018-07”. The guidance in this ASU expand the scope of Topic 718 to include share-based payment transactions for acquiring goods and services from nonemployees. The new standard is effective for annual reporting periods beginning after December 15, 2019, including interim reporting periods within each annual reporting period. The Company is currently evaluating the impact of the adoption of this ASU on the financial statements. In August 2018, the FASB issued ASU No. 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement, which changes the fair value measurement disclosure requirements of ASC 820. The amendments in this ASU are the result of a broader disclosure project called FASB Concepts Statement, Conceptual Framework for Financial Reporting — Chapter 8: Notes to Financial Statements. The amendments are effective for public business entities for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. The Company is currently evaluating the impact of the adoption of this standard on the financial statements. |
3. Prepaid Expenses and Deposit
3. Prepaid Expenses and Deposits | 3 Months Ended |
Mar. 31, 2019 | |
Prepaid Expenses And Deposits | |
Prepaid Expenses and Deposits | Note 3. Prepaid Expenses and Deposits The following summarizes the Company's prepaid expenses and deposits outstanding as at March 31, 2019 and December 31, 2018: March 31, 2019 December 31, 2018 Deposit on research agreements (Note 9(c)) $ 20,694 $ - Other prepaid expenses 1,050 1,050 $ 21,744 $ 1,050 |
4. Intangible Assets
4. Intangible Assets | 3 Months Ended |
Mar. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets | Note 4. Intangible Assets Intangible asset transactions are summarized as follows: Patent Rights Patent Application Rights Total Cost Balance, December 31, 2017 $ 30,000 $ 130,528 $ 160,528 Additions - 37,743 37,743 Balance, December 31, 2018 $ 30,000 $ 168,271 $ 198,271 Additions - 1,892 1,892 Balance, March 31, 2019 $ 30,000 $ 170,163 $ 200,163 Accumulated amortization Balance, December 31, 2017 $ 7,500 $ - $ 7,500 Amortization 3,000 - 3,000 Balance, December 31, 2018 $ 10,500 $ - $ 10,500 Amortization 750 - 750 Balance, March 31, 2019 $ 11,250 $ - $ 11,250 Net carrying amounts December 31, 2018 $ 19,500 $ 168,271 $ 187,771 March 31, 2019 $ 18,750 $ 170,163 $ 188,913 During the year ended December 31, 2015, the Company entered into an Assignment of Patents and Patent Application (effective January 1, 2015) (the "Patent Assignment") with the Institut National des Sciences Appliquees de Rouen ("INSA") for the assignment of certain patents and all rights associated therewith (the "Patents"). The Company and INSA had previously entered into a licensing agreement for the Patents in August 2004. The Patent Assignment transfers all of the Patents and rights associated therewith to the Company upon payment to INSA in the sum of $30,000 (25,000 Euros) (paid). During the three month period ended March 31, 2019, the Company recorded $750 (2018 - $750) in amortization expense associated with the Patents. During the year ended December 31, 2015, the Company entered into a Technology Transfer Agreement with Grant Young for the assignment of his 50% ownership of certain patents and all rights associated therewith (the "Patent Application Rights"). In exchange for the Patent Application Rights, the Company agreed to pay $10,000 (paid) and to issue 6,000,000 warrants (issued) to purchase shares of the Company's common stock at an exercise price of $0.10 per share for a period of five years. The Patent Application Rights had a total fair value of $35,000, which was allocated as $10,000 to the cash consideration paid, with the remaining $25,000 being allocated to the warrant component of the overall consideration. The Company has incurred $135,163 in direct costs relating to the Patent Application Rights, $1,892 of which were incurred during the three month period ended March 31, 2019. The remaining 50% ownership of the Patent Application Rights was acquired from the Governors of the University of Alberta in exchange for a future gross revenue royalty. During the year ended December 31, 2016, the Company entered into a Universal Assignment with Grant Young for the assignment of his ownership of certain new and useful improvements in an invention entitled "Use of Anti-Aging Glycoprotein for Enhancing Survival of Neurosensory Precursor Cells" (the "New Patent Application Rights"). In exchange for the New Patent Application Rights, the Company agreed to pay $1 (paid). The Company incurred $2,415 in direct costs relating to the New Patent Application Rights during the year ended December 31, 2016. No amortization was recorded on the Patent Application Rights to March 31, 2019. |
5. Stock Options
5. Stock Options | 3 Months Ended |
Mar. 31, 2019 | |
Stock Options | |
Stock Options | Note 5. Stock Options On December 30, 2016, the Board of Directors of the Company adopted the 2017 Stock Option and Stock Bonus Plan (the "2017 Plan"). The Board of Directors adopted the 2017 Plan as it anticipates utilizing equity compensation as part of its ongoing standard corporate operations and in connection with its contemplated activities going forward. The aggregate number of shares that may be issued under the 2017 Plan is 50,000,000 shares subject to adjustment as provided therein. The 2017 Plan includes two types of options. Options intended to qualify as incentive stock options under Section 422 of the Internal Revenue Code of 1986, as amended are referred to as incentive options. Options which are not intended to qualify as incentive options are referred to as non-qualified options. As of March 31, 2019, 40,600,000 options and no shares of common stock have been granted and are outstanding under the 2017 Plan. The 2017 Plan is administered by the Board of Directors, or a committee appointed by the Board of Directors. In addition to determining who will be granted options or stock bonuses, the committee has the authority and discretion to determine when options and bonuses will be granted and the number of options and bonuses to be granted. The committee also may determine a vesting and/or forfeiture schedule for bonuses and/or options granted, the time or times when each option becomes exercisable, the duration of the exercise period for options and the form or forms of the agreements, certificates or other instruments evidencing grants made under the 2017 Plan. The committee may determine the purchase price of the shares of common stock covered by each option. The committee also may impose additional conditions or restrictions not inconsistent with the provisions of the 2017 Plan. The committee may adopt, amend and rescind such rules and regulations as in its opinion may be advisable for the administration of the 2017 Plan. In the event that a change, such as a stock split, is made in the Company's capitalization which results in an exchange or other adjustment of each share of common stock for or into a greater or lesser number of shares, appropriate adjustments will be made to unvested bonuses and in the exercise price and in the number of shares subject to each outstanding option. The committee also may make provisions for adjusting the number of bonuses or underlying outstanding options in the event the Company effects one or more reorganizations, recapitalizations, rights offerings, or other increases or reductions of shares of its outstanding common stock. Options and bonuses may provide that in the event of the dissolution or liquidation of the Company, a corporate separation or division or the merger or consolidation of the Company, the holder may exercise the option on such terms as it may have been exercised immediately prior to such dissolution, corporate separation or division or merger or consolidation; or in the alternative, the committee may provide that each option granted under the 2017 Plan shall terminate as of a date fixed by the committee. The exercise price of any option granted under the 2017 Plan must be no less than 100% of the "fair market value" of the Company's common stock on the date of grant. The exercise period of any option shall not exceed ten years from the date of grant of the option. Any incentive stock option granted under the 2017 Plan to a person owning more than 10% of the total combined voting power of the common stock must be at a price of no less than 110% of the fair market value per share on the date of grant and the term shall be for no more than five years. Stock option transactions are summarized as follows: Number of Stock Options Weighted Average Exercise Price Weighted Average Fair Value Weighted Average Remaining Life $ $ (Years) Outstanding, December 31, 2017 44,100,000 0.06 0.05 Options expired (1,000,000 ) 0.05 0.05 Options granted 800,000 0.06 0.06 Outstanding, March 31, 2018 43,900,000 0.06 0.05 2.46 Outstanding, December 31, 2018 58,600,000 0.07 0.05 Options expired - - - Options granted - - - Outstanding, March 31, 2019 58,600,000 0.07 0.05 2.36 The fair values of the stock options granted during the three months ended March 31, 2019 and 2018 were estimated using the Black-Scholes Option Pricing Model. The weighted average assumptions used in the pricing model for these options are as follows: March 31, 2019 March 31, 2018 Risk-free interest rate - 1.38 % Dividend yield - 0.00 % Expected stock price volatility - 125.00 % Expected forfeiture rate - 0.00 % Expected life - 3.60 years The following non-qualified stock options were outstanding and exercisable at March 31, 2019: Expiry date Exercise Price Number of Options Outstanding Number of Options Exercisable $ December 31, 2019 0.08 11,000,000 11,000,000 February 25, 2020 0.04 2,000,000 - February 28, 2020 0.04 5,000,000 5,000,000 December 31, 2020 0.05 12,200,000 12,200,000 August 31, 2021 0.06 11,000,000 11,000,000 November 14, 2021 0.07 1,000,000 1,000,000 December 31, 2022 0.06 800,000 800,000 August 31, 2023 0.08 600,000 300,000 November 8, 2023 0.09 15,000,000 3,750,000 58,600,000 45,050,000 As at March 31, 2019, the aggregate intrinsic value of the Company's stock options is $796,000 (December 31, 2018 – $572,000). The weighted average fair value of stock options granted during the three months ended March 31, 2019 is $nil (2018 - $0.05). |
6. Warrants
6. Warrants | 3 Months Ended |
Mar. 31, 2019 | |
Warrants | |
Warrants | Note 6. Warrants Warrant transactions for the three months ended March 31, 2019 are summarized as follows: Number of Warrants Weighted Average Exercise Price Balance, December 31, 2017 and March 31, 2018 6,500,000 $ 0.11 Balance, December 31, 2018 and March 31, 2019 6,000,000 $ 0.10 The following warrants were outstanding and exercisable as at March 31, 2019: Number of Warrants Exercise Price ($) Expiry Date 6,000,000 0.10 April 22, 2020 |
7. Stockholders' Equity
7. Stockholders' Equity | 3 Months Ended |
Mar. 31, 2019 | |
Stockholders' Equity Note [Abstract] | |
Stockholders' Equity | Note 7. Stockholders' Equity The Company is authorized to issue 400,000,000 (December 31, 2018 – 400,000,000) shares of $0.0000053 par value common stock. Each holder of common stock has the right to one vote but does not have cumulative voting rights. Shares of common stock are not subject to any redemption or sinking fund provisions, nor do they have any preemptive, subscription or conversion rights. Holders of common stock are entitled to receive dividends whenever funds are legally available and when declared by the board of directors, subject to the prior rights of holders of all classes of stock outstanding having priority rights as to dividends. No dividends have been declared or paid as of March 31, 2019 (December 31, 2018 - $nil). During the three months ended March 31, 2019, the Company: a) Issued 750,000 shares of common stock to investors at $0.06 for gross proceeds of $45,000. During the three month period ended March 31, 2018, the Company: a) Issued 1,000,000 shares of common stock to investors at $0.05 for gross proceeds of $50,000. b) Issued 2,359,240 shares common stock to the Company's President and CEO to settle two promissory notes (plus accrued interest) totaling $117,962 (Note 8). |
8. Related Party Transactions a
8. Related Party Transactions and Balances | 3 Months Ended |
Mar. 31, 2019 | |
Related Party Transactions [Abstract] | |
Related Party Transactions and Balances | Note 8. Related Party Transactions and Balances During the three month period ended March 31, 2019 and 2018, the Company entered into the following related party transactions: a) Pursuant to a consulting agreement with an effective date of November 14, 2017, a total of $15,000 (2018 - $15,000) was paid or accrued to the Company's CFO. Pursuant to the agreement, he was also granted 1,000,000 stock options exercisable into common shares of the Company until November 14, 2021 at a price of $0.07 per share (Note 5). The options vested in equal instalments on a quarterly basis beginning February 14, 2018. On November 9, 2018, the CFO was granted an additional 4,000,000 stock options for continued service. The options are exercisable until November 8, 2023 at a price of $0.09 per share (Note 5) and vest quarterly equal installments beginning March 31, 2019. . During the three months ended March 31, 2019, the Company reimbursed a company controlled by the CFO a total of $3,150 (2018 - $3,150) in office rent. b) The Company recognized $167,598 (2018 - $99,014) in share-based compensation associated with stock options granted to key management personnel. c) During the three month period ended March 31, 2018, the Company issued a total of 2,359,240 shares of common stock to its President and CEO as settlement of principal and interest owing on two promissory notes. As at March 31, 2019 and December 31, 2018, there were $nil balances owing to related parties. |
9. Commitments and Contingency
9. Commitments and Contingency | 3 Months Ended |
Mar. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingency | Note 9. Commitments and Contingency Commitments As at March 31, 2019, the Company has the following commitments: a) Entered into a consulting agreement with an effective date of January 1, 2017 whereby the Company would pay the consultant $7,000 per month for providing research and development services. Pursuant to the agreement, the consultant was also granted 5,000,000 stock options exercisable into common shares of the Company until December 31, 2020 at a price of $0.05 per share (Note 5). The options vested in equal instalments on a quarterly basis beginning March 31, 2017. On September 1, 2017, the consulting agreement was amended to continue the term of the agreement until December 31, 2018 and thereafter to automatically renew. The consulting agreement was also amended to grant an additional 5,000,000 stock options exercisable into common shares of the Company until August 31, 2021 at a price of $0.06 per share (Note 5). The options vested quarterly in equal installments beginning December 31, 2017. On November 9, 2018, the consultant was granted an additional 5,000,000 stock options for continued service. The options are exercisable until November 8, 2023 at a price of $0.09 per share (Note 5) and vest quarterly in equal installments beginning March 31, 2019. c) Entered into a Collaborative Research Agreement (the "CREA") effective May 31, 2016 with the University of British Columbia ("UBC") for a term of 2 years. Pursuant to the CREA, the Company paid a total of CAD $169,000 ($131,448) in advance for services to be provided by UBC in the first year, and an additional CAD $201,500 ($146,585) which was due within 12 months from the effective date of the CREA in advance of services to be provided by UBC in the second year. On June 29, 2018, the Company entered into an amendment to the CREA, requiring two additional instalments of CAD $54,600 ($41,369 paid) on June 30, 2018 and CAD $54,600 (paid on January 2, 2019) on December 1, 2018. The CREA can be terminated by either party with 30 days' written notice. As of March 31, 2019, a total of $20,694 is included in prepaid expenses and deposits (December 31, 2018 - $nil) pertaining to the CREA. On January 4, 2018, the Company entered into an additional agreement with UBC, making a payment of CAD $50,001 ($40,140) for research services to be provided over a term of 1 year. d) Entered into a consulting agreement effective January 1, 2018, whereby the Company would pay the consultant $1,000 per month for a term of 1 year for providing public relations services, unless otherwise terminated by either party with at least 30 days' notice. The consultant was also granted 400,000 stock options exercisable into common shares of the Company until December 31, 2022 at a price of $0.06 per share (Note 5). The options vest quarterly in equal installments beginning March 31, 2018. The Company was delinquent in filing certain income tax returns with the U.S. Internal Revenue Service and reports disclosing its interest in foreign bank accounts on form TDF 90-22.1, "Report of Foreign Bank and Financial Accounts" ("FBARs"). In September 2015, the Company filed the delinquent income tax returns and has sought waivers of any penalties under the IRS Offshore Voluntary Disclosure Program for late filing of the returns and FBARs. Under the program, the IRS has indicated that it will not impose a penalty for the failure to file delinquent income tax returns if there are no under reported tax liabilities. On November 30, 2017, the Company received a letter from the IRS concluding their review of the Company's tax returns under the program and accepting the returns as filed. No penalties have been assessed by the IRS to date, and management does not believe that the Company will incur any penalties relating to the tax years submitted under the program. |
10. Subsequent Event
10. Subsequent Event | 3 Months Ended |
Mar. 31, 2019 | |
Subsequent Events [Abstract] | |
Subsequent Event | Note 10. Subsequent Event On April 1, 2019, the Company issued 4,000,000 shares of common stock to investors at $0.05 for gross proceeds of $200,000. |
2. Summary of Significant Acc_2
2. Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2019 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying unaudited financial statements have been prepared by the Company in conformity with accounting principles generally accepted in the United States of America ("US GAAP") applicable to interim financial information and with the rules and regulations of the United States Securities and Exchange Commission. Accordingly, certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles have been condensed, or omitted, pursuant to such rules and regulations. In the opinion of management, the unaudited interim financial statements include all adjustments necessary for the fair presentation of the results of the interim periods presented. All adjustments are of a normal recurring nature, except as otherwise noted below. These financial statements should be read in conjunction with the Company's audited financial statements and notes thereto for the year ended December 31, 2018, included in the Company's Annual Report on Form 10-K, filed March 12, 2019, with the Securities and Exchange Commission. The results of operations for the interim periods are not necessarily indicative of the results of operations for any other interim period or for a full fiscal year. |
Use of Estimates | Use of Estimates Preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. The more significant accounting estimates inherent in the preparation of the Company's financial statements include estimates as to valuation of equity related instruments issued, deferred income taxes, and the useful life and impairment of intangible assets. |
Cash | Cash Cash consists of funds held in checking accounts. Cash balances may exceed federally insured limits from time to time. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments Financial instruments, which includes cash, and accounts payable and accrued liabilities, are carried at amortized cost, which management believes approximates fair value due to the short-term nature of these instruments. The Company measures the fair value of financial assets and liabilities pursuant to ASC 820 "Fair Value Measurements and Disclosures" which defines fair value, establishes a framework for measuring fair value, and expands disclosures about fair value measurements. ASC 820 establishes a fair value hierarchy, which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The policy describes three levels of inputs that may be used to measure fair value: Level 1 – quoted prices in active markets for identical assets or liabilities. Level 2 – quoted prices for similar assets and liabilities in active markets or inputs that are observable. Level 3 – inputs that are unobservable (for example cash flow modeling inputs based on assumptions). Level 1 inputs are used to measure cash. At March 31, 2019 there were no other assets or liabilities subject to additional disclosure. |
Income Taxes | Income Taxes The Company accounts for income taxes following the assets and liability method in accordance with the ASC 740 "Income Taxes." Under such method, deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. The Company applies the accounting guidance issued to address the accounting for uncertain tax positions. This guidance clarifies the accounting for income taxes, by prescribing a minimum recognition threshold a tax position is required to meet before being recognized in the financial statements as well as provides guidance on derecognition, measurement, classification, interest and penalties, accounting in interim periods, disclosure and transition. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years that the asset is expected to be recovered or the liability settled. |
Intangible Assets - Patent and Patent Application Costs | Intangible assets – patent and patent application costs The Company owns intangible assets consisting of certain patents and patent applications. Intangible assets acquired separately are measured on initial recognition at cost. Following initial recognition, intangible assets are carried at cost less any accumulated amortization and any accumulated impairment losses. Subsequent expenditures are capitalized only when they increase the future economic benefits embodied in the specific asset to which they relate. All other expenditures are recognized in profit or loss as incurred. As at March 31, 2019, the Company does not hold any intangible assets with indefinite lives. Intangible assets with finite lives are amortized over the useful economic life and assessed for impairment whenever there is an indication that the intangible asset may be impaired. The amortization method and amortization period of an intangible asset with a finite life is reviewed at least annually. Changes in the expected useful life or the expected pattern of consumption of future economic benefits embodied in the asset is accounted for by changing the amortization period or method, as appropriate, and are treated as changes in accounting estimates. Amortization is recognized in profit or loss on a straight-line basis over the estimated useful lives of the Company's patents, whereas no amortization has been recognized on the patent application costs as at March 31, 2019. |
Research and Development Costs | Research and Development Costs Research and development costs are expensed as incurred. |
Loss per Share and Potentially Dilutive Securities | Loss per Share and Potentially Dilutive Securities Basic loss per share is computed by dividing the net loss available to common stockholders by the weighted average number of common shares outstanding in the period. Diluted loss per share takes into consideration common shares outstanding (computed under basic earnings per share) and potentially dilutive securities. The effect of 58,600,000 stock options (March 31, 2018 – 43,900,000), and 6,000,000 warrants (March 31, 2018 – 6,500,000) were not included in the computation of diluted earnings per share for all periods presented because it was anti-dilutive due to the Company's losses. |
Share-Based Compensation | Share-Based Compensation The Company has granted warrants and options to purchase shares of the Company's common stock to various parties for consulting services. The fair values of the warrants and options issued have been estimated using the Black-Scholes Option Pricing Model. The Company accounts for stock compensation with persons classified as employees for accounting purposes in accordance with ASC 718 "Compensation – Stock Compensation", which recognizes awards at fair value on the date of grant and recognition of compensation over the service period for awards expected to vest. Cliff Vesting is used and awards vest on the last day of the vesting period. The fair value of stock options is determined using the Black-Scholes Option Pricing Model. The fair value of common shares issued for services is determined based on the Company's stock price on the date of issuance. The Company accounts for stock compensation arrangements with persons classified as non-employees for accounting purposes in accordance with ASC 505-50 "Stock-Based Transactions with Nonemployees", which requires that such equity instruments are recorded at their fair value on the measurement date. The measurement of share-based compensation is subject to periodic adjustment as the underlying instruments vest. The fair value of stock options is estimated using the Black-Scholes Option Pricing Model and the compensation charges are amortized over the vesting period. |
Common stock | Common stock Common stock issued for non-monetary consideration are recorded at their fair value on the measurement date and classified as equity. The measurement date is defined as the earliest of the date at which the commitment for performance by the counterparty to earn the common shares is reached or the date at which the counterparty's performance is complete. Transaction costs directly attributable to the issuance of common stock, units and stock options are recognized as a deduction from equity, net of any tax effects. |
Related Party Transactions | Related Party Transactions A related party is generally defined as (i) any person that holds 10% or more of the Company's securities and their immediate families, (ii) the Company's management, (iii) someone that directly or indirectly controls, is controlled by or is under common control with the Company, or (iv) anyone who can significantly influence the financial and operating decisions of the Company. A transaction is considered to be a related party transaction when there is a transfer of resources or obligations between related parties. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In February 2016, the FASB issued No. ASU 2016-02, Leases (Topic 842), to increase transparency and comparability among organizations by requiring the recognition of a right-of-use assets and lease liabilities for most lease arrangements on the balance sheet. Under the standard, disclosures are required to meet the objective of enabling users of financial statements to assess the amount, timing, and uncertainty of cash flows arising from leases. The new standard is effective for fiscal years beginning after December 15, 2018, with early adoption permitted. The standard permits two transition methods, (1) to apply the new lease requirements at the beginning of the earliest period presented, or (2) to apply the new lease requirements at the effective date. Under both transition methods, there is a cumulative effect adjustment. ASU 2016-02 was originally required to be adopted on a modified retrospective basis, meaning the new leasing model would need to be applied to the earliest year presented in the financial statements and thereafter. However, in July 2018, the FASB issued ASU No. 2018-11, Leases (Topic 842): Targeted Improvements, which permits companies to apply the transition provisions of the lease accounting standard at its effective date (i.e. comparative financial statements are not required). Furthermore, in December 2018, the FASB issued ASU No. 2018-20, Leases (Topic 842): Narrow Scope Improvements for Lessors, which clarifies that lessor costs, paid directly to a third-party by a lessee on behalf of the lessor, are no longer required to be recognized in the lessor's financial statements. The Company adopted the new lease requirements on January 1, 2019, electing to use the practical expedients permitted under the transition guidance within the new standard. The adoption of this standard did not have a material impact on the Company's financial statements. In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, requiring certain changes to the recognition and measurement as well as disclosure of incurred and expected credit losses. The standard will become effective for the Company beginning January 1, 2020. In November 2018, the FASB issued ASU 2018-19 to clarify certain aspects of the new current expected credit losses impairment model in ASU 2016-13. ASU 2018-19 points out that operating lease receivables are within the scope of ASC 842 rather than ASC 326. The Company is currently evaluating the impact of the adoption of this standard on the financial statements. In June 2018, the FASB issued ASU No. 2018-07, Compensation—Stock Compensation (Topic 718): Improvements to Nonemployee ShareBased Payment Accounting, or “ASU 2018-07”. The guidance in this ASU expand the scope of Topic 718 to include share-based payment transactions for acquiring goods and services from nonemployees. The new standard is effective for annual reporting periods beginning after December 15, 2019, including interim reporting periods within each annual reporting period. The Company is currently evaluating the impact of the adoption of this ASU on the financial statements. In August 2018, the FASB issued ASU No. 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement, which changes the fair value measurement disclosure requirements of ASC 820. The amendments in this ASU are the result of a broader disclosure project called FASB Concepts Statement, Conceptual Framework for Financial Reporting — Chapter 8: Notes to Financial Statements. The amendments are effective for public business entities for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. The Company is currently evaluating the impact of the adoption of this standard on the financial statements. |
3. Prepaid Expenses and Depos_2
3. Prepaid Expenses and Deposits (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Prepaid Expenses And Deposits Tables | |
Prepaid expenses and deposits | The following summarizes the Company's prepaid expenses and deposits outstanding as at March 31, 2019 and December 31, 2018: March 31, 2019 December 31, 2018 Deposit on research agreements (Note 9(c)) $ 20,694 $ - Other prepaid expenses 1,050 1,050 $ 21,744 $ 1,050 |
4. Intangible Assets (Tables)
4. Intangible Assets (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible asset transactions | Intangible asset transactions are summarized as follows: Patent Rights Patent Application Rights Total Cost Balance, December 31, 2017 $ 30,000 $ 130,528 $ 160,528 Additions - 37,743 37,743 Balance, December 31, 2018 $ 30,000 $ 168,271 $ 198,271 Additions - 1,892 1,892 Balance, March 31, 2019 $ 30,000 $ 170,163 $ 200,163 Accumulated amortization Balance, December 31, 2017 $ 7,500 $ - $ 7,500 Amortization 3,000 - 3,000 Balance, December 31, 2018 $ 10,500 $ - $ 10,500 Amortization 750 - 750 Balance, March 31, 2019 $ 11,250 $ - $ 11,250 Net carrying amounts December 31, 2018 $ 19,500 $ 168,271 $ 187,771 March 31, 2019 $ 18,750 $ 170,163 $ 188,913 |
5. Stock Options (Tables)
5. Stock Options (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Stock Options | |
Schedule of Share-based Compensation, Stock Options, Activity | Stock option transactions are summarized as follows: Number of Stock Options Weighted Average Exercise Price Weighted Average Fair Value Weighted Average Remaining Life $ $ (Years) Outstanding, December 31, 2017 44,100,000 0.06 0.05 Options expired (1,000,000 ) 0.05 0.05 Options granted 800,000 0.06 0.06 Outstanding, March 31, 2018 43,900,000 0.06 0.05 2.46 Outstanding, December 31, 2018 58,600,000 0.07 0.05 Options expired - - - Options granted - - - Outstanding, March 31, 2019 58,600,000 0.07 0.05 2.36 |
Schedule of valuation assumptions for options | The weighted average assumptions used in the pricing model for these options are as follows: March 31, 2019 March 31, 2018 Risk-free interest rate - 1.38 % Dividend yield - 0.00 % Expected stock price volatility - 125.00 % Expected forfeiture rate - 0.00 % Expected life - 3.60 years |
Schedule of options by exercise price | The following non-qualified stock options were outstanding and exercisable at March 31, 2019: Expiry date Exercise Price Number of Options Outstanding Number of Options Exercisable $ December 31, 2019 0.08 11,000,000 11,000,000 February 25, 2020 0.04 2,000,000 - February 28, 2020 0.04 5,000,000 5,000,000 December 31, 2020 0.05 12,200,000 12,200,000 August 31, 2021 0.06 11,000,000 11,000,000 November 14, 2021 0.07 1,000,000 1,000,000 December 31, 2022 0.06 800,000 800,000 August 31, 2023 0.08 600,000 300,000 November 8, 2023 0.09 15,000,000 3,750,000 58,600,000 45,050,000 |
6. Warrants (Tables)
6. Warrants (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Warrants | |
Schedule of Warrant Activity | Warrant transactions for the three months ended March 31, 2019 are summarized as follows: Number of Warrants Weighted Average Exercise Price Balance, December 31, 2017 and March 31, 2018 6,500,000 $ 0.11 Balance, December 31, 2018 and March 31, 2019 6,000,000 $ 0.10 |
Schedule of Stockholders' Equity Note, Warrants or Rights | The following warrants were outstanding and exercisable as at March 31, 2019: Number of Warrants Exercise Price ($) Expiry Date 6,000,000 0.10 April 22, 2020 |
2. Summary of Significant Acc_3
2. Summary of Significant Accounting Policies (Details Narrative) - shares | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Warrant | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share | 6,000,000 | 6,500,000 |
Stock options | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share | 58,600,000 | 43,900,000 |
3. Prepaid Expenses and Depos_3
3. Prepaid Expenses and Deposits (Details) - USD ($) | Mar. 31, 2019 | Dec. 31, 2018 |
Prepaid Expenses And Deposits Details | ||
Deposit on research agreement (Note 9(c)) | $ 20,694 | $ 0 |
Other prepaid expenses | 1,050 | 1,050 |
Prepaid expenses and deposits | $ 21,744 | $ 1,050 |
4. Intangible Assets (Details)
4. Intangible Assets (Details) - USD ($) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2019 | Dec. 31, 2018 | |
Cost | ||
Beginning balance | $ 198,271 | $ 160,528 |
Additions | 1,892 | 37,743 |
Ending balance | 200,163 | 198,271 |
Accumulated amortization | ||
Beginning balance | 10,500 | 7,500 |
Amortization | 750 | 3,000 |
Ending balance | 11,250 | 10,500 |
Net carrying amounts | 188,913 | 187,771 |
Patent Rights [Member] | ||
Cost | ||
Beginning balance | 30,000 | 30,000 |
Additions | 0 | 0 |
Ending balance | 30,000 | 30,000 |
Accumulated amortization | ||
Beginning balance | 10,500 | 7,500 |
Amortization | 750 | 3,000 |
Ending balance | 11,250 | 10,500 |
Net carrying amounts | 18,750 | 19,500 |
Patent Application Rights [Member] | ||
Cost | ||
Beginning balance | 168,271 | 130,528 |
Additions | 1,892 | 37,743 |
Ending balance | 170,163 | 168,271 |
Accumulated amortization | ||
Beginning balance | 0 | 0 |
Amortization | 0 | 0 |
Ending balance | 0 | 0 |
Net carrying amounts | $ 170,163 | $ 168,271 |
4. Intangible Assets (Details N
4. Intangible Assets (Details Narrative) - USD ($) | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2016 | |
Amortization - intangible assets | $ 750 | $ 750 | |
Patent Rights [Member] | |||
Direct cost | $ 1,892 | $ 2,415 |
5. Stock Options (Details)
5. Stock Options (Details) - $ / shares | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Outstanding, ending | 58,600,000 | |
Stock options | ||
Outstanding, beginning | 58,600,000 | 44,100,000 |
Options expired | 0 | (1,000,000) |
Options granted | 0 | 800,000 |
Outstanding, ending | 58,600,000 | 43,900,000 |
Weighted Average Exercise Price beginning | $ 0.07 | $ 0.06 |
Weighted Average Exercise Price, expired | .00 | 0.05 |
Weighted Average Exercise Price, granted | .00 | 0.06 |
Weighted Average Exercise Price ending | 0.07 | 0.06 |
Weighted Average Fair Value, beginning | 0.05 | 0.05 |
Weighted Average Fair Value, expired | .00 | 0.05 |
Weighted Average Fair Value, granted | .00 | 0.06 |
Weighted Average Fair Value, ending | $ 0.05 | $ 0.05 |
Weighted Average Remaining Life (Years) | 2 years 4 months 9 days | 2 years 5 months 16 days |
5. Stock Options (Details 1)
5. Stock Options (Details 1) - Stock options | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Risk-free interest rate | 0.00% | 1.38% |
Dividend yield | 0.00% | 0.00% |
Expected stock price volatility | 0.00% | 125.00% |
Expected forfeiture rate | 0.00% | 0.00% |
Expected life | 3 years 7 months 6 days |
5. Stock Options (Details 2)
5. Stock Options (Details 2) | Mar. 31, 2019$ / sharesshares |
Number of Options Outstanding | 58,600,000 |
Number of options exercisable | 45,050,000 |
December 31, 2019 | |
Exercise Price | $ / shares | $ 0.08 |
Number of Options Outstanding | 11,000,000 |
Number of options exercisable | 11,000,000 |
February 25, 2020 | |
Exercise Price | $ / shares | $ 0.04 |
Number of Options Outstanding | 2,000,000 |
Number of options exercisable | 0 |
February 28, 2020 | |
Exercise Price | $ / shares | $ 0.04 |
Number of Options Outstanding | 5,000,000 |
Number of options exercisable | 5,000,000 |
December 31, 2020 | |
Exercise Price | $ / shares | $ 0.05 |
Number of Options Outstanding | 12,200,000 |
Number of options exercisable | 12,200,000 |
August 31, 2021 | |
Exercise Price | $ / shares | $ 0.06 |
Number of Options Outstanding | 11,000,000 |
Number of options exercisable | 11,000,000 |
November 14, 2021 | |
Exercise Price | $ / shares | $ 0.07 |
Number of Options Outstanding | 1,000,000 |
Number of options exercisable | 1,000,000 |
December 31, 2022 | |
Exercise Price | $ / shares | $ 0.06 |
Number of Options Outstanding | 800,000 |
Number of options exercisable | 800,000 |
August 31, 2023 | |
Exercise Price | $ / shares | $ 0.08 |
Number of Options Outstanding | 600,000 |
Number of options exercisable | 300,000 |
November 08, 2023 | |
Exercise Price | $ / shares | $ 0.09 |
Number of Options Outstanding | 15,000,000 |
Number of options exercisable | 3,750,000 |
5. Stock Options (Details Narra
5. Stock Options (Details Narrative) - USD ($) | 3 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | |
Aggregate intrinsic value | $ 796,000 | $ 572,000 | |
Common Stock | |||
Common stock granted | 0 | ||
Stock options | |||
Common stock granted | 40,600,000 | ||
Weighted average fair value of stock options granted per share | $ .00 | $ 0.06 |
6. Warrants (Details)
6. Warrants (Details) - $ / shares | Mar. 31, 2019 | Dec. 31, 2018 | Mar. 31, 2018 | Dec. 31, 2017 |
Notes to Financial Statements [Abstract] | ||||
Warrant outstanding, ending | 6,000,000 | 6,000,000 | 6,500,000 | 6,500,000 |
Warrant weighted average exercise price | $ 0.10 | $ 0.10 | $ 0.11 | $ 0.11 |
6. Warrants (Details 1)
6. Warrants (Details 1) - $ / shares | 3 Months Ended | |||
Mar. 31, 2019 | Dec. 31, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | |
Warrant Exercise Price | $ 0.10 | $ 0.10 | $ 0.11 | $ 0.11 |
Warrant One | ||||
Number of Warrants | 6,000,000 | |||
Warrant Exercise Price | $ 0.10 | |||
Expiry Date | April 22, 2020 |
7. Stockholders' Equity (Detail
7. Stockholders' Equity (Details Narrative) - USD ($) | 3 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | |
Common Stock, Par Value Per Share | $ 0.0000053 | $ 0.0000053 | |
Common Stock, Shares Authorized | 400,000,000 | 400,000,000 | |
Dividends declared | $ 0 | $ 0 | |
Issuance of common stock pursuant to settlement of promissory notes, amount | $ 117,962 | ||
Investors | |||
Common stock issued | 750,000 | 1,000,000 | |
Share price | $ 0.06 | $ .05 | |
Gross proceeds from issue of common stock | $ 45,000 | $ 50,000 | |
Clarence Smith (CEO) | |||
Issuance of common stock pursuant to settlement of promissory notes, shares | 2,359,240 | ||
Issuance of common stock pursuant to settlement of promissory notes, amount | $ 117,962 |
8. Related Party Transactions_2
8. Related Party Transactions and Balances (Details Narrative) - USD ($) | 3 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | |
Share based Compensation | $ 167,598 | $ 99,014 | |
Payment to CFO | 15,000 | $ 15,000 | |
Due to related parties | 0 | $ 0 | |
Common Stock | |||
Issuance of common stock pursuant to settlement of promissory notes, shares | 2,359,240 | ||
Chief Financial Officer [Member] | |||
Office rent | $ 3,150 | $ 3,150 |
9. Commitments and Contingency
9. Commitments and Contingency (Details Narrative) - USD ($) | Mar. 31, 2019 | Dec. 31, 2018 |
Commitments And Contingency Details Narrative | ||
Prepaid expenses | $ 20,694 | $ 0 |
10. Subsequent Event (Details N
10. Subsequent Event (Details Narrative) - Investors - USD ($) | Apr. 01, 2019 | Mar. 31, 2019 | Mar. 31, 2018 |
Common stock issued | 750,000 | 1,000,000 | |
Share price | $ 0.06 | $ .05 | |
Gross proceeds from issue of common stock | $ 45,000 | $ 50,000 | |
Subsequent Event [Member] | |||
Common stock issued | 4,000,000 | ||
Share price | $ 0.05 | ||
Gross proceeds from issue of common stock | $ 200,000 |