Document and Entity Information
Document and Entity Information | 12 Months Ended |
Dec. 31, 2020shares | |
Document and Entity Information [Abstract] | |
Document Type | 20-F |
Amendment Flag | false |
Document Period End Date | Dec. 31, 2020 |
Entity Registrant Name | KELSO TECHNOLOGIES INC. |
Entity Central Index Key | 0001161814 |
Current Fiscal Year End Date | --12-31 |
Entity Filer Category | Non-accelerated Filer |
Entity Common Stock, Shares Outstanding | 47,170,086 |
Entity Interactive Data Current | Yes |
Entity Current Reporting Status | Yes |
Entity Voluntary Filers | No |
Entity Well Known Seasoned Issuer | No |
Document Fiscal Year Focus | 2020 |
Document Fiscal Period Focus | FY |
Entity Emerging Growth Company | true |
Entity Ex Transition Period | false |
Entity Shell Company | false |
Consolidated Statements of Fina
Consolidated Statements of Financial Position - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Current | ||
Cash | $ 1,049,049 | $ 4,418,236 |
Accounts receivable | 535,659 | 1,824,563 |
Prepaid expenses | 162,739 | 96,627 |
Inventory | 5,462,532 | 3,394,192 |
Total current assets | 7,209,979 | 9,733,618 |
Property, plant and equipment | 4,198,577 | 3,389,994 |
Intangible assets | 607,959 | 607,959 |
Total assets | 12,016,515 | 13,731,571 |
Current | ||
Accounts payable and accrued liabilities | 814,777 | 1,638,020 |
Income tax payable | 91,566 | 71,341 |
Current portion of lease liability | 51,743 | 86,384 |
Total current liabilities | 958,086 | 1,795,745 |
Long term portion of lease liability | 97,506 | 90,551 |
Total liabilities | 1,055,592 | 1,886,296 |
Shareholders' Equity | ||
Capital Stock | 23,366,542 | 23,366,542 |
Reserves | 4,661,847 | 4,238,309 |
Deficit | (17,067,466) | (15,759,576) |
Stockholders' equity | 10,960,923 | 11,845,275 |
Total liabilities and stockholders' equity | $ 12,016,515 | $ 13,731,571 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Shareholders Equity - USD ($) | Capital Stock [Member] | Obligation to issue shares [Member] | Reserves [Member] | Deficit [Member] | Total |
Balance at Dec. 31, 2017 | $ 23,231,252 | $ 131,527 | $ 3,490,526 | $ (19,288,072) | $ 7,565,233 |
Balance (Shares) at Dec. 31, 2017 | 46,911,752 | ||||
Exercise of options | $ 3,763 | (1,263) | 2,500 | ||
Exercise of options (Shares) | 8,334 | ||||
Shares issued | $ 131,527 | $ (131,527) | |||
Shares issued (Shares) | 250,000 | ||||
Share-based expense | 403,548 | 403,548 | |||
Net income (loss) for the year | 194,453 | 194,453 | |||
Balance at Dec. 31, 2018 | $ 23,366,542 | 3,892,811 | (19,093,619) | 8,165,734 | |
Balance (Shares) at Dec. 31, 2018 | 47,170,086 | ||||
Share-based expense | 345,498 | 345,498 | |||
Net income (loss) for the year | 3,334,043 | 3,334,043 | |||
Balance at Dec. 31, 2019 | $ 23,366,542 | 4,238,309 | (15,759,576) | 11,845,275 | |
Balance (Shares) at Dec. 31, 2019 | 47,170,086 | ||||
Share-based expense | 423,538 | 423,538 | |||
Net income (loss) for the year | (1,307,890) | (1,307,890) | |||
Balance at Dec. 31, 2020 | $ 23,366,542 | $ 4,661,847 | $ (17,067,466) | $ 10,960,923 | |
Balance (Shares) at Dec. 31, 2020 | 47,170,086 |
Consolidated Statements of Oper
Consolidated Statements of Operations and Comprehensive Income (Loss) - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Statement | |||
Revenues | $ 11,149,130 | $ 20,550,682 | $ 12,716,596 |
Cost of Goods Sold | 6,356,452 | 10,967,803 | 7,429,380 |
Gross Profit | 4,792,678 | 9,582,879 | 5,287,216 |
Expenses | |||
Office and administration | 2,074,623 | 2,219,711 | 1,667,646 |
Management compensation | 670,269 | 1,037,586 | 610,570 |
Research | 1,391,712 | 1,129,007 | 1,352,817 |
Marketing | 365,193 | 288,893 | 266,152 |
Travel | 52,497 | 197,293 | 159,800 |
Accounting and legal | 312,213 | 321,945 | 194,282 |
Share-based expense | 423,538 | 345,498 | 403,548 |
Consulting | 265,507 | 386,661 | 196,823 |
Investor relations | 84,000 | 84,000 | 84,000 |
Foreign exchange (gain) loss | (11,254) | 27,698 | 4,257 |
Amortization | 140,178 | 69,271 | 30,242 |
Bad debts | (20,206) | (14,689) | |
Total Expenses | 5,768,476 | 6,087,357 | 4,955,448 |
Income (Loss) Before the Following: | (975,798) | 3,495,522 | 331,768 |
Interest income | 30,966 | ||
Write-off of inventory | (114,066) | (62,402) | (26,031) |
Write-off of property, plant and equipment | (34,438) | ||
Write-off of intangible assets | (328,010) | ||
Income (Loss) Before Taxes: | (1,058,898) | 3,433,120 | (56,711) |
Income Tax Expense (Recovery) | |||
Current | 248,992 | 99,077 | (251,164) |
Net Income (Loss) and Comprehensive Income (Loss) for the Year | $ (1,307,890) | $ 3,334,043 | $ 194,453 |
Basic Gain (Loss) Per Share (in dollar per share) | $ (0.03) | $ 0.07 | $ 0 |
Diluted Gain (Loss) Per Share (in dollar per share) | $ (0.03) | $ 0.07 | $ 0 |
Weighted Average Number of Common Shares Outstanding | |||
Basic (in shares) | 47,170,086 | 47,170,086 | 47,117,369 |
Diluted (in shares) | 47,170,086 | 48,186,522 | 47,451,644 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Operating Activities | |||
Net income (loss) | $ (1,307,890) | $ 3,334,043 | $ 194,453 |
Items not involving cash: | |||
Amortization | 898,705 | 384,827 | 277,580 |
Write-off of inventory | 114,066 | 62,402 | 26,031 |
Write-off of property, plant and equipment | 34,438 | ||
Write-off of intangible assets | 328,010 | ||
Share-based expense | 423,538 | 345,498 | 403,548 |
Bad debts (recovery) | (20,206) | (14,689) | |
Unrealized foreign exchange loss (gain) | (100) | (1,669) | 4,257 |
Cash flows from (used in) operations before changes in working capital | 128,319 | 4,104,895 | 1,253,628 |
Changes in non-cash working capital | |||
Accounts receivable | 1,288,904 | (580,122) | (556,101) |
Prepaid expenses | (66,112) | 13,631 | 73,708 |
Inventory | (2,178,694) | 213,283 | 291,713 |
Accounts payable and accrued liabilities | (754,343) | 262,725 | 399,416 |
Income tax payable | 20,225 | (395,398) | (254,528) |
Changes in non-cash working capital | (1,690,020) | (485,881) | (45,792) |
Cash Provided by (Used in) Operating Activities | (1,561,701) | 3,619,014 | 1,207,836 |
Investing Activities | |||
Proceeds from disposition of property, plant and equipment | 700 | ||
Acquisition of property, plant and equipment | (1,713,875) | (428,954) | (371,758) |
Cash Used in Investing Activities | (1,713,875) | (428,954) | (371,058) |
Financing Activities | |||
Issue of common shares, net of share issue costs | 2,500 | ||
Lease liability payments | (93,711) | (19,737) | |
Cash Provided by (Used in) Financing Activities | (93,711) | (19,737) | 2,500 |
Foreign Exchange Effect on Cash | 100 | 1,669 | (4,257) |
Inflow (Outflow) of Cash | (3,369,187) | 3,171,992 | 835,021 |
Cash, Beginning of Year | 4,418,236 | 1,246,244 | 411,223 |
Cash, End of Year | $ 1,049,049 | $ 4,418,236 | $ 1,246,244 |
NATURE OF OPERATIONS
NATURE OF OPERATIONS | 12 Months Ended |
Dec. 31, 2020 | |
Nature Of Operations [Abstract] | |
NATURE OF OPERATIONS [Text Block] | 1. NATURE OF OPERATIONS Kelso Technologies Inc. (the "Company") was incorporated under the laws of British Columbia on March 16, 1987. The Company designs, engineers, markets, produces and distributes various proprietary pressure relief valves and manway securement systems designed to reduce the risk of environmental harm due to non-accidental events in the transportation of hazardous commodities via railroad tank cars. In addition, the Company is an engineering development company specializing in proprietary service equipment used in transportation applications. The Company trades on the Toronto Stock Exchange ("TSX") under the symbol "KLS", and the New York Stock Exchange ("NYSE") under the trading symbol "KIQ". The Company listed on the TSX on May 22, 2014 and on the NYSE on October 14, 2014. The Company's head office is located at 13966 18B Avenue, South Surrey, British Columbia, V4A 8J1. Since December 31, 2019, the outbreak of the novel strain of coronavirus, specifically identified as "COVID-19", has resulted in governments worldwide enacting emergency measures to combat the spread of the virus. These measures, which include the implementation of travel bans, self-imposed quarantine periods and physical distancing, have caused material disruption to business globally resulting in an economic slowdown. Global equity markets have experienced significant volatility and weakness. The duration and impact of the COVID-19 outbreak is unknown at this time, as is the efficacy of the government and central bank interventions. It is not possible to reliably estimate the length and severity of these developments and the impact on the financial results and condition of the Company in future periods. |
BASIS OF PREPARATION
BASIS OF PREPARATION | 12 Months Ended |
Dec. 31, 2020 | |
Basis Of Preparation [Abstract] | |
BASIS OF PREPARATION [Text Block] | 2. BASIS OF PREPARATION (a) These consolidated financial statements of the Company have been prepared in accordance with International Financial Reporting Standards ("IFRS"), as issued by the International Accounting Standards Board ("IASB"). These consolidated financial statements have been prepared under the historical cost basis, except for financial instruments, which are stated at their fair values. These consolidated financial statements have been prepared using the accrual basis of accounting, except for cash flow information. (b) The consolidated financial statements include the accounts of the Company and its integrated wholly owned subsidiaries, Kelso Technologies (USA) Inc., Kel-Flo Industries Inc. (formerly Kelso Innovative Solutions Inc.), KIQ Industries Inc., and KXI Wildertec Industries Inc., which are all Nevada, USA, corporations except KIQ X Industries Inc. and KXI Wildertec Industries Inc., which were incorporated in British Columbia. Intercompany transactions and balances have been eliminated on consolidation. A subsidiary is consolidated from the date upon which control is acquired by the Company and all material intercompany transactions and balances have been eliminated on consolidation. Control is achieved when the Company is exposed, or has rights, to variable returns from its involvement with the investee and has the ability to affect those returns through its power over the investee. (c) The functional and presentation currency of the Company and its subsidiaries is the US dollar ("USD"). (d) The preparation of consolidated financial statements in conformity with IFRS requires the Company's management to undertake a number of judgments, estimates and assumptions that affect amounts reported in the consolidated financial statements and notes thereto. Actual amounts may ultimately differ from these estimates and assumptions. The Company reviews its estimates and underlying assumptions on an ongoing basis. Revisions are recognized in the period in which the estimates are revised and may impact future periods. Significant management judgments The following are significant management judgments in applying the accounting policies of the Company that have the most significant effect on recognition and measurement of assets, liabilities, income and expenses: (i) The extent to which deferred tax assets can be recognized is based on an assessment of the probability of the Company generating future taxable income against which the deferred tax assets can be utilized. In addition, significant judgment is required in classifying transactions and assessing probable outcomes of tax positions taken, and in assessing the impact of any legal or economic limits or uncertainties in various tax jurisdictions. (ii) The functional currency for the Company and its subsidiaries is the currency of the primary economic environment in which the entity operates. The Company has determined its functional currency and that of its subsidiaries is the USD. Determination of functional currency may involve certain judgments to determine the primary economic environment and the Company reconsiders the functional currency of its entities if there is a change in events and conditions that determined the primary economic environment. (iii) The application of the Company's accounting policy for research and development expenditures requires judgment in determining whether an activity is determined to be research or development, and if deemed to be development, whether it is probable that future economic benefits will flow to the Company, which may be based on assumptions about future events or circumstances. Estimates and assumptions may change if new information becomes available. If new information becomes available indicating that it is unlikely that future economic benefits will flow to the Company, the amount capitalized is written off to profit or loss in the period the new information becomes available. (d) Significant management judgments (Continued) (iv) The assessment of whether the going concern assumption is appropriate requires management to take into account all available information about the future, which is at least, but not limited to, twelve months from the end of the reporting period. Estimation uncertainty Information about estimates and assumptions that have the most significant effect on the recognition and measurement of assets, liabilities, income and expenses is provided below. Actual results may be substantially different. (i) Long-lived assets consist of intangible assets and property, plant and equipment. At the end of each reporting period, the Company reviews the carrying amounts of its long-lived assets to determine whether there is any indication that the carrying amount is not recoverable. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). When an individual asset does not generate independent cash flows, the Company estimates the recoverable amount of the cash-generating unit to which the asset belongs. Assets are grouped together into the smallest group of assets that generates cash inflows from continuing use that are largely independent of the cash inflows of other assets or groups of assets. When a reasonable and consistent basis of allocation can be identified, corporate assets are also allocated to individual cash-generating units, or otherwise they are allocated to the smallest group of cash-generating units for which a reasonable and consistent allocation basis can be identified. Recoverable amount is the higher of fair value less costs of disposal and value in use. Fair value is determined as the price that would be received to sell an asset in an orderly transaction between market participants at the measurement date. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted. (ii) The Company reviews its estimate of the useful lives of depreciable assets at each reporting date, based on the expected utilization of the assets. Uncertainties in these estimates relate to technical obsolescence that may change the utilization of certain intangible assets and equipment. (iii) The Company estimates the net realizable value of inventories, taking into account the most reliable evidence available at each reporting date. The future realization of these inventories may be affected by future technology or other market-driven changes that may reduce future selling prices. A change to these assumptions could impact the Company's inventory valuation and impact gross margins. (iv) The Company grants share-based awards to certain officers, employees, directors and other eligible persons. For equity settled awards, the fair value is charged to the consolidated statements of operations and comprehensive income (loss) and credited to the reserves, over the vesting period using the graded vesting method, after adjusting for the estimated number of awards that are expected to vest. The fair value of the equity-settled awards is determined at the date of the grant using the Black-Scholes option pricing model. Option pricing models require the input of highly subjective assumptions, including the expected volatility and expected life of the options. Changes in these assumptions can materially affect the fair value estimate, and therefore, the existing models do not necessarily provide a reliable measure of the fair value of the Company's stock options. (v) The Company provides for doubtful debts by analyzing the historical default experience and current information available about a customer's credit worthiness on an account by account basis. Uncertainty relates to the actual collectability of customer balances that can vary from the Company's estimation. (vi) Lease liability The Company uses estimation in determining the incremental borrowing rate used to measure the lease liability, specific to the asset, underlying currency, and geographic location. Where the rate implicit in the lease is not readily determinable, the discount rate of the lease obligations are estimated using a discount rate similar to the Company's specific borrowing rate. This rate represents the rate that the Company would incur to obtain the funds necessary to purchase the asset of a similar value, with similar payment terms and security in a similar environment. The Company applies judgement in determining whether the contract contains an identified asset, whether they have the right to control the asset, and the lease term. Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the period in which the estimates are revised and in any future periods affected. (e) The consolidated financial statements of the Company for the year ended December 31, 2020 were approved and authorized for issue by the Board of Directors on March 12, 2021. (f) The Company has performed an assessment of new standards issued by the IASB that are not yet effective. The Company has assessed that the impact of adopting these accounting standards on its consolidated financial statements would not be significant. |
SIGNIFICANT ACCOUNTING POLICIES
SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2020 | |
Significant Accounting Policies [Abstract] | |
SIGNIFICANT ACCOUNTING POLICIES [Text Block] | 3. SIGNIFICANT ACCOUNTING POLICIES The following is a summary of significant accounting policies: (a) Inventory components include raw materials and supplies used to assemble valves and manway covers, as well as finished valves and manway covers. All inventories are recorded at the lower of cost on a weighted average basis and net realizable value. The stated value of all inventories includes purchase and assembly costs of all raw materials and supplies, and attributable overhead and amortization. A regular review is undertaken to determine the extent of any provision for obsolescence. (b) 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 accumulated impairment losses, if any. The useful lives of intangible assets are assessed as either finite or indefinite. 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 period and the amortization method for an intangible asset with a finite useful life are reviewed at least at the end of each reporting period. A change in the expected useful life of 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 treated as changes in accounting estimates. Intangible assets with indefinite useful lives are not amortized, but are tested for impairment annually, either individually or at the cash-generating unit level. The assessment of indefinite life is reviewed annually to determine whether the indefinite life continues to be supportable. If not, the change in useful life from indefinite to finite is made on a prospective basis. The Company amortizes intangible assets with finite lives on a straight-line basis over their estimated useful lives as follows: Patents - 5 years Rights - 2 years Amortization begins when the intangible asset is ready for use. Product and technology development costs, which meet the criteria for deferral and are expected to provide future economic benefits with reasonable certainty are deferred and amortized over the estimated life of the products or technology once commercialization commences. (c) Property, plant and equipment are stated at cost less accumulated amortization. Leasehold improvements and prototypes are amortized on a straight-line basis over the lease term and estimated useful life respectively. Amortization is calculated over the estimated useful life of the property, plant and equipment at the following annual rates: Building – 4% declining-balance Production equipment – 20% declining-balance Vehicles – 30% declining-balance Leasehold improvements – 5 year straight-line Prototypes – 2 year straight-line (d) Revenues from the sale of pressure relief valves, manway securement systems and related products is recognised when all the performance obligations identified in the customer contract, typically consisting of a purchase order, are satisfied. The performance obligations in a typical purchase order are the manufacture of the pressure relief valve, manway securement system and related accessories and delivery of those items. The Company recognizes revenue when collection is reasonably assured. (e) The Company’s tangible and intangible assets are reviewed for any indication of impairment at each statement of financial position date. If indication of impairment exists, the asset’s recoverable amount is estimated. An impairment loss is recognized when the carrying amount of an asset, or its cash-generating unit, exceeds its recoverable amount. A cash-generating unit is the smallest identifiable group of assets that generates cash inflows that are largely independent of cash inflow from other assets or groups of assets. The recoverable amount is the greater of the asset’s fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the assets. For an asset that does not generate largely independent cash inflows, the recoverable amount is determined for the cash-generating unit to which the asset belongs. (f) (i) Income tax expense, consisting of current and deferred tax expense, is recognized in the consolidated statements of operations and comprehensive income (loss). Current tax expense is the expected tax payable on the taxable income for the year, using tax rates enacted or substantively enacted at period-end, adjusted for amendments to tax payable with regard to previous years. Deferred tax assets and liabilities and the related deferred income tax expense or recovery are recognized for deferred tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis. Deferred tax assets and liabilities are measured using the enacted or substantively enacted tax rates expected to apply when the asset is realized or the liability settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income (loss) in the period that substantive enactment occurs. A deferred tax asset is recognized to the extent that it is probable that future taxable profits will be available against which the asset can be utilized. To the extent that the Company does not consider it probable that a deferred tax asset will be recovered, the deferred tax asset is reduced. Deferred tax assets and liabilities are offset when there is a legally enforceable right to set off current tax assets against current tax liabilities and when they relate to income taxes levied by the same taxation authority and the Company intends to settle its current tax assets and liabilities on a net basis. (ii) Effective January 1, 2007, the state of Texas enacted an annual franchise tax known as the Texas margin tax, which is equal to 1% of the lesser of: (a) 70% of a taxable entity’s revenue; and (b) 100% of total revenue less, at the election of the taxpayer: (i) cost of goods sold; or (ii) compensation. A provision for the margin tax owing has been recorded in the consolidated statements of operations and comprehensive income (loss). (g) The accounts of foreign balances and transactions are translated into USD as follows: (i) (ii) (iii) Gains and losses arising from translation of foreign currency are included in the determination of net income (loss). (h) The Company presents basic earnings per share data for its common shares, calculated by dividing the earnings attributable to common shareholders of the Company by the weighted average number of shares outstanding during the period. The Company uses the treasury stock method for calculating diluted earnings per share. Under this method the dilutive effect on earnings per share is calculated on the use of the proceeds that could be obtained upon exercise of options, warrants and similar instruments. It assumes that the proceeds of such exercise would be used to purchase common shares at the average market price during the period. However, the calculation of diluted loss per share excludes the effects of various conversions and exercise of options and warrants that would be anti-dilutive. (i) The Company grants share options to acquire common shares of the Company to directors, officers, employees and consultants. The fair value of share-based expense to employees is measured at grant date, using the Black-Scholes option pricing model, and is recognized over the vesting period for employees using the graded vesting method. Fair value of share-based expenses for non-employees is recognized and measured at the date the goods or services are received based on the fair value of the goods or services received. If it is determined that the fair value of goods and services received cannot be reliably measured, the share-based expense is measured at the fair value of the equity instruments issued using the Black-Scholes option pricing model. For both employees and non-employees, the fair value of share-based expense is recognized on the consolidated statements of operations and comprehensive income (loss), with a corresponding increase in reserves. The amount recognized as expense is adjusted to reflect the number of share options expected to vest. Consideration received on the exercise of stock options is recorded in capital stock and the related share-based expense in reserves is transferred to capital stock. (j) Proceeds from the exercise of stock options and warrants are recorded as capital stock in the amount for which the option or warrant enabled the holder to purchase a share in the Company. Any previously recorded share-based expense included in the share-based expenses reserve is transferred to capital stock on exercise of options. Capital stock issued for non-monetary consideration is valued at the closing market price at the date of issuance. The proceeds from the issuance of units are allocated between common shares and warrants based on the residual value method. Under this method, the proceeds are allocated first to capital stock based on the fair value of the common shares at the time the units are priced and any residual value is allocated to the warrants reserve. Consideration received for the exercise of warrants is recorded in capital stock, and any related amount recorded in warrants reserve is transferred to capital stock. (k) (i) Initial recognition and measurement A financial asset is measured initially at fair value plus, for an item not at fair value through profit or loss, transaction costs that are directly attributable to its acquisition or issue. On initial recognition, a financial asset is classified as measured at amortized cost or fair value through profit or loss. A financial asset is measured at amortized cost if it meets the conditions that i) the asset is held within a business model whose objective is to hold assets to collect contractual cash flows, ii) the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding, and iii) is not designated as fair value through profit or loss. Subsequent measurement The subsequent measurement of financial assets depends on their classification as follows: Financial assets at fair value through profit or loss Financial assets measured at fair value through profit and loss are carried in the consolidated statements of financial position at fair value with changes in fair value therein, recognized in the consolidated statements of operations and comprehensive income (loss). Financial assets measured at amortized cost A financial asset is subsequently measured at amortized cost, using the effective interest method and net of any impairment allowance. Derecognition A financial asset or, where applicable a part of a financial asset or part of a group of similar financial assets is derecognized when: • • (ii) Financial liabilities are recognized when the Company becomes a party to the contractual provisions of the financial instrument. A financial liability is derecognized when it is extinguished, discharged, cancelled or when it expires. Financial liabilities are classified as either financial liabilities at fair value through profit or loss or financial liabilities subsequently measured at amortized cost. All interest-related charges are reported in profit or loss within interest expense, if applicable. Amortized cost A financial liability at amortized cost is initially measured at fair value less transaction costs directly attributable to the issuance of the financial liability. Subsequently, the financial liability is measured at amortized cost based on the effective interest rate method. Fair value through profit or loss ("FVTPL") A financial liability measured at FVTPL is initially measured at fair value with any associated transaction costs being recognized in profit or loss when incurred. Subsequently, the financial liability is re-measured at fair value, and a gain or loss is recognized in profit or loss in the reporting period in which it arises. Derecognition The Company derecognizes a financial liability when the financial liability is discharged, cancelled or expired. Generally, the difference between the carrying amount of the financial liability derecognized and the consideration paid and payable, including any non-cash assets transferred or liabilities assumed, is recognized in the consolidated statements of loss and comprehensive loss. (iii) The Company categorizes financial instruments measured at fair value at one of three levels according to the reliability of the inputs used to estimate fair values. The fair value of financial assets and financial liabilities included in Level 1 are determined by reference to quoted prices in active markets for identical assets and liabilities. Financial assets and liabilities in Level 2 are valued using inputs other than quoted prices for which all significant inputs are based on observable market data. Level 3 valuations are based on inputs that are not based on observable market data. (l) At inception, the Company assesses whether a contract contains an embedded lease. A contract contains a lease when the contract conveys a right to control the use of an identified asset for a period of time in exchange for consideration. The Company, as lessee, is required to recognize a right-of-use asset ("ROU asset"), representing its right to use the underlying asset, and a lease liability, representing its obligation to make lease payments. IFRS 16 Leases The Company recognizes a ROU asset and a lease liability at the commencement of the lease. The ROU asset is initially measured based on the present value of lease payments, plus initial direct cost, less any incentives received. It is subsequently measured at cost less accumulated amortization, impairment losses and adjusted for certain remeasurements of the lease liability. The ROU asset is amortized from the commencement date over the shorter of the lease term or the useful life of the underlying asset. The ROU asset is subject to testing for impairment if there is an indicator of impairment. The lease liability is initially measured at the present value of the lease payments that are not paid at the commencement date, discounted by the interest rate implicit in the lease, or if that rate cannot be readily determined, the incremental borrowing rate. The incremental borrowing rate is the rate which the operation would have to pay to borrow over a similar term and with similar security, the funds necessary to obtain an asset of similar value to the ROU asset in a similar economic environment. Lease payments included in the measurement of the lease liability are comprised of: • • • • • • The lease liability is subsequently increased by the interest cost on the lease liability and decreased by lease payments made. It is remeasured when there is a change in future lease payments arising from a change in an index or a rate, a change in the estimate of the amount expected to be payable under a residual value guarantee, or as appropriate, changes in the assessment of whether a purchase or extension option is reasonably certain to be exercised or a termination option is reasonably certain not to be exercised. Variable lease payments that do not depend on an index or a rate not included in the initial measurement of the ROU asset and lease liability are recognized as an expense in profit or loss in the period in which they are incurred. The ROU assets are presented within "Property, plant and equipment" and the lease liabilities are presented in "Lease liability" on the consolidated statements of financial position. |
CAPITAL MANAGEMENT
CAPITAL MANAGEMENT | 12 Months Ended |
Dec. 31, 2020 | |
Capital Management [Abstract] | |
CAPITAL MANAGEMENT [Text Block] | 4. CAPITAL MANAGEMENT The Company considers its capital to be comprised of shareholders’ equity. The Company’s objectives in managing its capital are to maintain its ability to continue as a going concern and to further develop its business. To effectively manage the Company’s capital requirements, the Company has a planning and budgeting process in place to meet its strategic goals. In order to facilitate the management of its capital requirements, the Company prepares expenditure budgets that are updated as necessary depending on various factors, including successful capital deployment and general industry conditions. Management reviews the capital structure on a regular basis to ensure the above objectives are met. There have been no changes to the Company's approach to capital management during the year ended December 31, 2020. There are no externally imposed restrictions on the Company's capital. |
FINANCIAL INSTRUMENTS
FINANCIAL INSTRUMENTS | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure of detailed information about financial instruments [abstract] | |
FINANCIAL INSTRUMENTS [Text Block] | 5. FINANCIAL INSTRUMENTS Financial instruments are agreements between two parties that result in promises to pay or receive cash or equity instruments. The Company's financial instruments classified as level 1 in the fair value hierarchy are cash, accounts receivable, and accounts payable and accrued liabilities, as their carrying values approximate their fair values due to their short-term nature. The lease liability is classified as level 3. The Company has exposure to the following risks from its use of financial instruments: • • • (a) Credit risk is the risk that one party to a financial instrument will cause a financial loss for the other party by failing to discharge an obligation. Cash are placed with major Canadian and US financial institutions and the Company's concentration of credit risk for cash and maximum exposure thereto is $1,049,049 (2019 - $4,418,236). With respect to its accounts receivable, the Company assesses the credit rating of all customers and maintains provisions for potential credit losses, and any such losses to date have been within management's expectations. The Company's credit risk with respect to accounts receivable and maximum exposure thereto is $535,659 (2019 - $1,824,563). The Company's concentration of credit risk for accounts receivable with respect to its significant customers is as follows: Customer A is $105,820 (2019 - $476,341), Customer B is $15,349 (2019 - $172,842), Customer C is $ nil To reduce the credit risk of accounts receivable, the Company regularly reviews the collectability of the accounts receivable to ensure there is no indication that these amounts will not be fully recoverable. (b) Liquidity risk is the risk that the Company will be unable to meet its financial obligations as they fall due. The Company's approach to managing liquidity risk is to ensure, as far as possible, that it will have sufficient liquid funds to meet its liabilities when due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the Company's reputation. At December 31, 2020, the Company has $1,049,049 (2019 - $4,418,236) of cash to settle current liabilities of $958,086 (2019 - $1,795,745) consisting of the following: accounts payable and accrued liabilities of $786,354 (2019 - $1,100,376), due to related party balance of $28,423 (2019 - $537,644), income tax payable of $91,566 (2019 - $71,341) and current portion of lease liability of $51,743 (2019 - $86,384). All payables classified as current liabilities are due within a year. The amount of the Company's remaining undiscounted contractual maturities for the lease liabilities is approximately $100,709 (2019 - $122,534) which are due between one to five years (Note 6). (c) The significant market risks to which the Company could be exposed are interest rate risk and currency risk. (i) Interest rate risk is the risk that the fair value or future cash flows will fluctuate as a result of changes in market interest rates. The Company is not exposed to significant interest rate risk. (ii) The Company is exposed to currency risk to the extent expenditures incurred or funds received, and balances maintained by the Company are denominated in Canadian dollars ("CAD"). The Company does not manage currency risk through hedging or other currency management tools. As at December 31, 2020 and 2019, the Company had the following net monetary assets denominated in CAD (amounts presented in USD): December 31, 2020 December 31, 2019 Cash $ 52,084 $ 76,389 Accounts receivable 92,210 66,035 Accounts payable (109,519 ) (197,967 ) $ (34,775 ) $ (55,543 ) Based on the above, assuming all other variables remain constant, a 2% (2019 - 14%) weakening or strengthening of the USD against the CAD would result in approximately $696 (2019 - $7,776) foreign exchange loss or gain in the consolidated statements of operations and comprehensive income (loss). |
INVENTORY
INVENTORY | 12 Months Ended |
Dec. 31, 2020 | |
Inventory [Abstract] | |
INVENTORY [Text Block] | 6. INVENTORY December 31, 2020 December 31, 2019 Finished goods $ 124,290 $ 100,675 Raw materials and supplies 5,338,242 3,293,517 $ 5,462,532 $ 3,394,192 Included in cost of goods sold is $4,937,761 (2019 - $9,443,243; 2018 - $5,974,854) of direct material costs recognized as expense. Inventory write-off during the year was $114,066 (2019 - $62,402; 2018 - $26,031). |
PROPERTY, PLANT AND EQUIPMENT
PROPERTY, PLANT AND EQUIPMENT | 12 Months Ended |
Dec. 31, 2020 | |
Property, plant and equipment [abstract] | |
PROPERTY, PLANT AND EQUIPMENT [Text Block] | 7. PROPERTY, PLANT AND EQUIPMENT Leasehold Production Cost Land Building Improvements Equipment Prototypes ROU Asset Total Balance, December 31, 2018 $ 12,558 $ 2,955,901 $ 43,715 $ 809,982 $ 406,160 $ — $ 4,228,316 Additions — — — 7,166 564,234 117,004 688,404 Balance, December 31, 2019 $ 12,558 $ 2,955,901 $ 43,715 $ 817,148 $ 970,394 $ 117,004 $ 4,916,720 Additions — 8,082 — 175,467 1,527,451 — 1,711,000 Balance, December 31, 2020 $ 12,558 $ 2,963,983 $ 43,715 $ 992,615 $ 2,497,845 $ 117,004 $ 6,627,720 Accumulated Amortization Balance, December 31, 2018 $ — $ 516,117 $ 35,622 $ 520,991 $ 67,693 $ — $ 1,140,423 Amortization — 97,592 1,619 58,515 216,365 12,212 386,303 Balance, December 31, 2019 $ — $ 613,709 $ 37,241 $ 579,506 $ 284,058 $ 12,212 $ 1,526,726 Amortization — 93,849 1,295 67,784 665,597 73,892 902,417 Balance, December 31, 2020 $ — $ 707,558 $ 38,536 $ 647,290 $ 949,655 $ 86,104 $ 2,429,143 Carrying Value December 31, 2019 $ 12,558 $ 2,342,192 $ 6,474 $ 237,642 $ 686,336 $ 104,792 $ 3,389,994 December 31, 2020 $ 12,558 $ 2,256,425 $ 5,179 $ 345,325 $ 1,548,190 $ 30,900 $ 4,198,577 Included in cost of goods sold is $134,067 (2019 - $131,617; 2018 - $179,645) of amortization related to property, plant and equipment. Included in expenses is $140,178 (2019 - $69,271; 2018 - $21,435) of amortization related to property, plant and equipment. Included in inventory is $3,712 (2019 - $1,476; 2018 - $5,902) of amortization related to property, plant and equipment. Included in research is $624,460 (2019 - $183,939; 2018 - $67,693) of amortization related to property, plant and equipment, of which $ Nil Nil Included in prototype additions are vehicles under lease of $66,025 (2019 - $79,668; 2018 - $ Nil |
INTANGIBLE ASSETS
INTANGIBLE ASSETS | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure of detailed information about intangible assets [abstract] | |
INTANGIBLE ASSETS [Text Block] | 8. INTANGIBLE ASSETS Cost Patent Rights Total Balance, December 31, 2018 $ 40,840 $ 672,959 $ 1,041,809 Impairment — — (328,010 ) Balance, December 31, 2019 and 2020 $ 40,840 $ 672,959 $ 713,799 Accumulated Amortization Balance, December 31, 2018 $ 40,840 $ 65,000 $ 105,840 Amortization — — — Balance, December 31, 2019 and 2020 $ 40,840 $ 65,000 $ 105,840 Carrying Value December 31, 2019 and 2020 $ — $ 607,959 $ 607,959 During the year ended December 31, 2010, the Company entered into an agreement to acquire a patent related to their manway securement systems. The Company is obligated to pay a 5% royalty in accordance with the agreement (Note 15). On November 10, 2016, the Company entered into a technology development agreement to acquire all intellectual property rights (the “Products”) of G & J Technologies, Inc. (the “Vendor”) for consideration of $217,946, consisting of $25,000 in cash and 250,000 common shares with a fair value of $192,946. The shares were issued during the year ended December 31, 2017. On November 10, 2016, the Vendor also entered into a consulting agreement with the Company for a fee of $10,000 per month. In addition, the Company will pay an additional $75,000 in cash and issue 750,000 common shares of the Company to the Vendor based on the following milestones: • • • The Company is also required to pay a royalty to the Vendor of 2.5% of the net sales earned by the Company, to be paid within 30 days of the end of each calendar quarter. As at December 31, 2020 the Company has not earned any revenue from the sale of the Products. At December 31, 2017, the Company had capitalized $328,010 of internal product development costs related to the construction of equipment. During the year ended December 31, 2018, as part of the testing phase, the equipment was destroyed and accordingly, management impaired the product development costs and recognized an impairment loss of $328,010. |
LEASE LIABILITY
LEASE LIABILITY | 12 Months Ended |
Dec. 31, 2020 | |
Presentation of leases for lessee [abstract] | |
LEASE LIABILITY [Text Block] | 9. LEASE LIABILITY The Company has lease agreements for its warehouse space in Kelowna, British Columbia and for vehicles used in the development of prototypes (Note 7). The continuity of the lease liability for the years ended December 31, 2020 and 2019 is as follows: Lease liability Warehouse Vehicles Total Lease liability recognized as of December 31, 2018 $ — $ — $ — Lease liability recognized 117,004 79,668 196,672 Lease payments (12,728 ) (7,746 ) (20,474 ) Lease interest 509 228 737 Lease liability recognized as of December 31, 2019 $ 104,785 $ 72,150 $ 176,935 Additions — 66,025 66,025 Lease payments (77,009 ) (22,586 ) (99,595 ) Lease interest 3,642 2,242 5,884 Leasing liability recognized as of December $ 31,418 $ 117,831 $ 149,249 Current portion $ 31,418 $ 20,325 $ 51,743 Long-term portion — 97,506 97,506 $ 31,418 $ 117,831 $ 149,249 The Company's non-current contractual lease obligations are as follows: Year Amount 2022 $ 25,083 2023 56,815 2024 13,278 2025 5,533 $ 100,709 |
CAPITAL STOCK
CAPITAL STOCK | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure Of Capital Stock Explanatory [Abstract] | |
CAPITAL STOCK [Text Block] | 10. CAPITAL STOCK Authorized: Unlimited Class A non-cumulative, preferred shares without par value, of which 5,000,000 are designated Class A, convertible, voting, preferred shares. No preferred shares have been issued. Unlimited common shares without par value. (a) During the year ended December 31, 2018, the Company issued 8,334 common shares pursuant to the exercise of stock options for gross proceeds of $2,500. Fair value previously recognized on options exercised of $1,263 was reclassified from reserves to capital stock. During the year ended December 31, 2018, the Company issued 250,000 shares with a fair value of $131,527 pursuant to achieving the third milestone of the technology development agreement (Note 8). These common shares were recorded as shares to be issued at December 31, 2017. (b) The Company has a stock option plan (the “Plan”) available to employees, directors, officers and consultants with grants under the Plan approved from time to time by the Board of Directors. Under the Plan, the Company is authorized to issue options to purchase an aggregate of up to 10% of the Company's issued and outstanding common shares. Each option can be exercised to acquire one common share of the Company. The exercise price for an option granted under the Plan may not be less than the market price at the date of grant less a specified discount dependent on the market price. Options to purchase common shares have been granted to directors, employees and consultants as follows: Exercise Expiry December 31, December 31, Price Date 2019 Granted Exercised Expired 2020 $1.30(USD) August 18, 2021 1,175,000 — — — 1,175,000 $0.90(USD) July 6, 2022 50,000 — — — 50,000 $0.30(USD) November 28, 2022 750,000 — — — 750,000 $0.50(USD) August 20, 2023 750,000 — — — 750,000 $0.57(USD) April 17, 2023 200,000 — — — 200,000 $1.45(USD) May 17, 2024 10,000 — — — 10,000 $0.78(USD) August 19, 2024 700,000 — — — 700,000 $0.82(USD) November 8, 2024 10,000 — — — 10,000 $0.76(USD) February 11, 2025 — 200,000 — — 200,000 $0.75(USD) August 18, 2025 — 750,000 — — 750,000 Total outstanding 3,645,000 950,000 — — 4,595,000 Total exercisable 2,831,667 316,665 — — 3,721,667 Exercise Expiry December 31, December 31, Price Date 2018 Granted Exercised Expired 2019 $0.70(CAD) October 7, 2019 28,571 — — (28,571 ) — $6.85(CAD) November 14, 2019 100,000 — — (100,000 ) — $1.30(USD) August 18, 2021 1,175,000 — — — 1,175,000 $0.90(USD) July 6, 2022 50,000 — — — 50,000 $0.30(USD) November 28, 2022 750,000 — — — 750,000 $0.50(USD) August 20, 2023 750,000 — — — 750,000 $0.57(USD) April 17, 2023 200,000 — — — 200,000 $1.45(USD) May 17, 2024 — 10,000 — — 10,000 $0.78(USD) August 19, 2024 — 700,000 — — 700,000 $0.82(USD) November 8, 2024 — 10,000 — — 10,000 Total outstanding 3,053,571 720,000 — (128,571 ) 3,645,000 Total exercisable 1,353,571 2,831,667 A summary of the Company's stock options as at December 31, 2020 and 2019, and changes for the years then ended are as follows: Weighted Average Exercise Number Price Outstanding, December 31, 2018 3,053,571 $ 0.92 Granted 720,000 $ 0.79 Expired (128,571 ) $ 4.22 Outstanding, December 31, 2019 3,645,000 $ 0.78 Granted 950,000 $ 0.75 Outstanding, December 31, 2020 4,595,000 $ 0.78 The weighted average contractual life for the remaining options at December 31, 2020 is 2.52 years (2019 - 3.0). Share-based expense Share-based expense of $423,538 (2019 - $345,498; 2018 - $403,548) was recognized in the year ended December 31, 2020 for stock options. The share-based expense relates to options granted during December 31, 2020, 2019, 2018 and 2017, which vest over time. The fair value of stock options is estimated using the Black-Scholes option pricing model with the following weighted average assumptions: Year ended Year ended Year ended December 31, 2020 December 31, 2019 December 31, 2018 Risk-free interest rate (average) 0.51% 1.32% 2.15% Estimated volatility (average) 67.29% 69.93% 66.56% Expected life in years 5.00 5.00 5.00 Expected dividend yield 0.00% 0.00% 0.00% Estimated forfeitures 0.00% 0.00% 0.00% Grant date fair value per option $ 0.38 $ 0.45 $ 0.29 Option pricing models require the use of highly subjective estimates and assumptions. The expected volatility assumption is based on the historical and implied volatility of the Company’s common share price on the TSX. The risk-free interest rate assumption is based on yield curves on Canadian government zero-coupon bonds with a remaining term equal to the stock options’ expected life. The Company uses historical data to estimate option exercise, forfeiture and employee termination within the valuation model. |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure Of Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS [Text Block] | 11. RELATED PARTY TRANSACTIONS Related party transactions not otherwise described in these consolidated financial statements are shown below. The remuneration of the Company's directors and other members of key management, being the Chief Executive Officer, Chief Financial Officer, and Chief Operating Officer who have the authority and responsibility for planning, directing and controlling the activities of the Company, consist of the following amounts: December 31, December 31, December 31, 2020 2019 2018 Management compensation $ 641,845 $ 540,692 $ 540,535 Management bonus * 28,423 496,894 70,035 Share-based expense ** 335,155 255,902 262,261 Directors' fees 163,000 120,500 73,000 $ 1,168,423 $ 1,413,988 $ 945,831 * ** As at December 31, 2020, amounts due to related parties included accounts payable and accrued liabilities, which are unsecured and have no interest or specific terms of payments, of $28,423 (2019 - $537,644) consisting of $ Nil |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2020 | |
Income taxes paid (refund) [abstract] | |
INCOME TAXES [Text Block] | 12. INCOME TAXES The Company has $ nil The tax effect items that give rise to significant portions of the deferred income tax assets and deferred income tax liabilities at December 31, 2020 and 2019 are as follows: December 31, 2020 December 31, 2019 Deferred income tax assets Non-capital loss carry-forwards $ 22,609 $ 221,178 Deferred income tax assets $ 22,609 $ 221,178 Deficiency (excess) of carrying value over tax value $ — $ (195,048 ) Excess of carrying value over tax value of intangible (22,609 ) (26,130 ) Deferred income tax liability $ (22,609 ) $ (221,178 ) Net deferred tax asset (liability) $ — $ — Significant unrecognized tax benefits and unused tax losses for which no deferred tax assets is recognized as of December 31, 2020 and 2019 are as follows: December 31, December 31, Excess of tax value over carrying value of $ 1,536 $ 9,333 Non-capital losses carried forward 936,086 264,989 Property, plant and equipment 14,809 — Lease liability 40,297 79,896 Unrecognized deductible temporary differences $ 992,728 $ 354,218 Income tax expense differs from the amount that would be computed by applying the Canadian statutory income tax rate of 27.00% (2019 - 27.00%; 2018 - 27.00%) to income (loss) before income taxes as follows: December 31, December 31, December 31, Income (loss) before income taxes $ (1,307,890 ) $ 3,334,043 $ (56,711 ) Statutory income tax rate 27.00% 27.00% 27.00% Income tax (benefit) liability computed at (353,130 ) 900,192 (15,312 ) Items not deductible for income tax 147,116 (12,564 ) 77,417 Under provision of taxes in prior (84,532 ) 36,225 — Change in timing differences 499,718 135,130 (80,965 ) Impact of foreign exchange on tax assets (7,163 ) (39,116 ) (90,212 ) Difference between Canadian and foreign — — 3,403 Effect of change in tax rates — — (42,564 ) Unused tax losses and tax offsets not 33,082 (983,204 ) 148,233 Income tax expense (recovery) 235,091 36,663 — Penalties and interest included in income — 27,989 (290,818 ) Texas margin tax and branch tax 13,901 34,425 39,654 Income tax expense (recovery) $ 248,992 $ 99,077 $ (251,164 ) |
SUPPLEMENTAL CASH FLOW INFORMAT
SUPPLEMENTAL CASH FLOW INFORMATION | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure Of Supplemental Cash Flow Information [Abstract] | |
SUPPLEMENTAL CASH FLOW INFORMATION [Text Block] | 13. SUPPLEMENTAL CASH FLOW INFORMATION December 31, December 31, December 31, 2020 2019 2018 Shares issued for intangible assets $ — $ — $ 131,527 Property, plant and equipment in accounts payable and accrued liabilities $ 28,280 $ 97,180 $ 34,402 Interest paid $ 9,088 $ 737 $ — Income taxes paid (recovered) $ 229,233 $ 487,206 $ (3,907 ) |
EARNINGS PER SHARE
EARNINGS PER SHARE | 12 Months Ended |
Dec. 31, 2020 | |
Earnings per share [abstract] | |
EARNINGS PER SHARE [Text Block] | 14. EARNINGS PER SHARE The calculation of basic and diluted earnings (loss) per share for the relevant years is based on the following: December 31, December 31, December 31, 2020 2019 2018 Net income (loss) for the year $ (1,307,890 ) $ 3,334,043 $ 194,453 Basic weighted average number of 47,170,086 47,170,086 47,117,369 Effect on dilutive securities: Options — 1,016,436 334,275 Diluted weighted average number of 47,170,086 48,186,522 47,451,644 Basic income (loss) per share $ (0.03 ) $ 0.07 $ 0.00 Diluted income (loss) per share $ (0.03 ) $ 0.07 $ 0.00 |
SIGNIFICANT CUSTOMERS
SIGNIFICANT CUSTOMERS | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure of major customers [abstract] | |
SIGNIFICANT CUSTOMERS [Text Block] | 15. SIGNIFICANT CUSTOMERS The following table represents sales to individual customers exceeding 10% of the Company’s annual revenues: December 31, December 31, December 31, 2020 2019 2018 Customer A $ 5,505,214 $ 11,043,962 $ 6,158,718 Customer B $ 485,674 $ 2,660,840 $ 1,524,550 Customer C $ 2,710,540 $ 1,957,400 $ 1,093,303 Customer D $ 1,280,155 $ 308,443 $ 16,346 The customers are major US and Canadian corporations who have displayed a pattern of consistent timely payment of amounts owing from sales. The Company is obligated to pay a 5% royalty from sales of their manway securement systems until 2023 in accordance with the original acquisition agreement. During the year ended December 31, 2020, there were revenues from sales of the manway securement systems totalling $10,500 (2019 - $133,486; 2018 - $13,301). |
EMPLOYEE BENEFITS
EMPLOYEE BENEFITS | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure of information about defined benefit plans [abstract] | |
EMPLOYEE BENEFITS [Text Block] | 16. EMPLOYEE BENEFITS Total employee benefit expenses, including salary and wages, management compensation, share-based expense and benefits for the year ended December 31, 2020 amounted to $3,803,757 (2019 - $4,451,529; 2018 - $3,275,011). |
SEGMENTED INFORMATION
SEGMENTED INFORMATION | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure Of Segmented Information [Abstract] | |
SEGMENTED INFORMATION [Text Block] | 17. SEGMENTED INFORMATION The Company operates in two business segments with operations and long-term assets in United States and Canada. The two business segments include the design, production and distribution of various proprietary products for the rail sector and active suspension control system for no road vehicles. At December 31, 2020, long term assets of $2,001,034 (2019 - $1,399,087) relates to the active suspension control system located in Canada and $2,941,310 (2019 - $2,347,234) relates to the rail sector located in the United States. During the year ended December 31, 2020, 2019 and 2018 there was no revenue related to the active suspension control system. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure of non-adjusting events after reporting period [abstract] | |
SUBSEQUENT EVENTS [Text Block] | 18. SUBSEQUENT EVENTS Subsequent to the year ended December 31, 2020, the Company closed a private placement raising gross proceeds of approximately CAD$6,370,000 by issuing 7,000,000 units at CAD$0.91 per unit. Each unit consists of one common share and one-half share purchase warrant. Each whole warrant entitles the holder thereof to acquire one common share at a price of CAD$1.15 in year one and CAD$1.30 in year two. Subsequent to the year ended December 31, 2020, the Company terminated the technology development agreement with the Vendor, including the consulting agreement for $10,000 per month, as described in Note 8. The Company will still maintain all intellectual property rights acquired under the agreement and will still be liable for the 2.5% royalty. |
SIGNIFICANT ACCOUNTING POLICI_2
SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2020 | |
Significant Accounting Policies [Abstract] | |
Inventory [Policy Text Block] | (a) Inventory components include raw materials and supplies used to assemble valves and manway covers, as well as finished valves and manway covers. All inventories are recorded at the lower of cost on a weighted average basis and net realizable value. The stated value of all inventories includes purchase and assembly costs of all raw materials and supplies, and attributable overhead and amortization. A regular review is undertaken to determine the extent of any provision for obsolescence. |
Intangible assets [Policy Text Block] | (b) 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 accumulated impairment losses, if any. The useful lives of intangible assets are assessed as either finite or indefinite. 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 period and the amortization method for an intangible asset with a finite useful life are reviewed at least at the end of each reporting period. A change in the expected useful life of 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 treated as changes in accounting estimates. Intangible assets with indefinite useful lives are not amortized, but are tested for impairment annually, either individually or at the cash-generating unit level. The assessment of indefinite life is reviewed annually to determine whether the indefinite life continues to be supportable. If not, the change in useful life from indefinite to finite is made on a prospective basis. The Company amortizes intangible assets with finite lives on a straight-line basis over their estimated useful lives as follows: Patents - 5 years Rights - 2 years Amortization begins when the intangible asset is ready for use. Product and technology development costs, which meet the criteria for deferral and are expected to provide future economic benefits with reasonable certainty are deferred and amortized over the estimated life of the products or technology once commercialization commences. |
Property, plant and equipment [Policy Text Block] | (c) Property, plant and equipment are stated at cost less accumulated amortization. Leasehold improvements and prototypes are amortized on a straight-line basis over the lease term and estimated useful life respectively. Amortization is calculated over the estimated useful life of the property, plant and equipment at the following annual rates: Building – 4% declining-balance Production equipment – 20% declining-balance Vehicles – 30% declining-balance Leasehold improvements – 5 year straight-line Prototypes – 2 year straight-line |
Revenue recognition [Policy Text Block] | (d) Revenues from the sale of pressure relief valves, manway securement systems and related products is recognised when all the performance obligations identified in the customer contract, typically consisting of a purchase order, are satisfied. The performance obligations in a typical purchase order are the manufacture of the pressure relief valve, manway securement system and related accessories and delivery of those items. The Company recognizes revenue when collection is reasonably assured. |
Impairment of long-lived assets [Policy Text Block] | (e) The Company’s tangible and intangible assets are reviewed for any indication of impairment at each statement of financial position date. If indication of impairment exists, the asset’s recoverable amount is estimated. An impairment loss is recognized when the carrying amount of an asset, or its cash-generating unit, exceeds its recoverable amount. A cash-generating unit is the smallest identifiable group of assets that generates cash inflows that are largely independent of cash inflow from other assets or groups of assets. The recoverable amount is the greater of the asset’s fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the assets. For an asset that does not generate largely independent cash inflows, the recoverable amount is determined for the cash-generating unit to which the asset belongs. |
Income taxes [Policy Text Block] | (f) (i) Income tax expense, consisting of current and deferred tax expense, is recognized in the consolidated statements of operations and comprehensive income (loss). Current tax expense is the expected tax payable on the taxable income for the year, using tax rates enacted or substantively enacted at period-end, adjusted for amendments to tax payable with regard to previous years. Deferred tax assets and liabilities and the related deferred income tax expense or recovery are recognized for deferred tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis. Deferred tax assets and liabilities are measured using the enacted or substantively enacted tax rates expected to apply when the asset is realized or the liability settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income (loss) in the period that substantive enactment occurs. A deferred tax asset is recognized to the extent that it is probable that future taxable profits will be available against which the asset can be utilized. To the extent that the Company does not consider it probable that a deferred tax asset will be recovered, the deferred tax asset is reduced. Deferred tax assets and liabilities are offset when there is a legally enforceable right to set off current tax assets against current tax liabilities and when they relate to income taxes levied by the same taxation authority and the Company intends to settle its current tax assets and liabilities on a net basis. (ii) Effective January 1, 2007, the state of Texas enacted an annual franchise tax known as the Texas margin tax, which is equal to 1% of the lesser of: (a) 70% of a taxable entity’s revenue; and (b) 100% of total revenue less, at the election of the taxpayer: (i) cost of goods sold; or (ii) compensation. A provision for the margin tax owing has been recorded in the consolidated statements of operations and comprehensive income (loss). |
Foreign currency translation [Policy Text Block] | (g) The accounts of foreign balances and transactions are translated into USD as follows: (i) (ii) (iii) Gains and losses arising from translation of foreign currency are included in the determination of net income (loss). |
Earnings per share [Policy Text Block] | (h) The Company presents basic earnings per share data for its common shares, calculated by dividing the earnings attributable to common shareholders of the Company by the weighted average number of shares outstanding during the period. The Company uses the treasury stock method for calculating diluted earnings per share. Under this method the dilutive effect on earnings per share is calculated on the use of the proceeds that could be obtained upon exercise of options, warrants and similar instruments. It assumes that the proceeds of such exercise would be used to purchase common shares at the average market price during the period. However, the calculation of diluted loss per share excludes the effects of various conversions and exercise of options and warrants that would be anti-dilutive. |
Share-based expense [Policy Text Block] | (i) The Company grants share options to acquire common shares of the Company to directors, officers, employees and consultants. The fair value of share-based expense to employees is measured at grant date, using the Black-Scholes option pricing model, and is recognized over the vesting period for employees using the graded vesting method. Fair value of share-based expenses for non-employees is recognized and measured at the date the goods or services are received based on the fair value of the goods or services received. If it is determined that the fair value of goods and services received cannot be reliably measured, the share-based expense is measured at the fair value of the equity instruments issued using the Black-Scholes option pricing model. For both employees and non-employees, the fair value of share-based expense is recognized on the consolidated statements of operations and comprehensive income (loss), with a corresponding increase in reserves. The amount recognized as expense is adjusted to reflect the number of share options expected to vest. Consideration received on the exercise of stock options is recorded in capital stock and the related share-based expense in reserves is transferred to capital stock. |
Capital stock [Policy Text Block] | (j) Proceeds from the exercise of stock options and warrants are recorded as capital stock in the amount for which the option or warrant enabled the holder to purchase a share in the Company. Any previously recorded share-based expense included in the share-based expenses reserve is transferred to capital stock on exercise of options. Capital stock issued for non-monetary consideration is valued at the closing market price at the date of issuance. The proceeds from the issuance of units are allocated between common shares and warrants based on the residual value method. Under this method, the proceeds are allocated first to capital stock based on the fair value of the common shares at the time the units are priced and any residual value is allocated to the warrants reserve. Consideration received for the exercise of warrants is recorded in capital stock, and any related amount recorded in warrants reserve is transferred to capital stock. |
Financial instruments [Policy Text Block] | (k) (i) Initial recognition and measurement A financial asset is measured initially at fair value plus, for an item not at fair value through profit or loss, transaction costs that are directly attributable to its acquisition or issue. On initial recognition, a financial asset is classified as measured at amortized cost or fair value through profit or loss. A financial asset is measured at amortized cost if it meets the conditions that i) the asset is held within a business model whose objective is to hold assets to collect contractual cash flows, ii) the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding, and iii) is not designated as fair value through profit or loss. Subsequent measurement The subsequent measurement of financial assets depends on their classification as follows: Financial assets at fair value through profit or loss Financial assets measured at fair value through profit and loss are carried in the consolidated statements of financial position at fair value with changes in fair value therein, recognized in the consolidated statements of operations and comprehensive income (loss). Financial assets measured at amortized cost A financial asset is subsequently measured at amortized cost, using the effective interest method and net of any impairment allowance. Derecognition A financial asset or, where applicable a part of a financial asset or part of a group of similar financial assets is derecognized when: • • (ii) Financial liabilities are recognized when the Company becomes a party to the contractual provisions of the financial instrument. A financial liability is derecognized when it is extinguished, discharged, cancelled or when it expires. Financial liabilities are classified as either financial liabilities at fair value through profit or loss or financial liabilities subsequently measured at amortized cost. All interest-related charges are reported in profit or loss within interest expense, if applicable. Amortized cost A financial liability at amortized cost is initially measured at fair value less transaction costs directly attributable to the issuance of the financial liability. Subsequently, the financial liability is measured at amortized cost based on the effective interest rate method. Fair value through profit or loss ("FVTPL") A financial liability measured at FVTPL is initially measured at fair value with any associated transaction costs being recognized in profit or loss when incurred. Subsequently, the financial liability is re-measured at fair value, and a gain or loss is recognized in profit or loss in the reporting period in which it arises. Derecognition The Company derecognizes a financial liability when the financial liability is discharged, cancelled or expired. Generally, the difference between the carrying amount of the financial liability derecognized and the consideration paid and payable, including any non-cash assets transferred or liabilities assumed, is recognized in the consolidated statements of loss and comprehensive loss. (iii) The Company categorizes financial instruments measured at fair value at one of three levels according to the reliability of the inputs used to estimate fair values. The fair value of financial assets and financial liabilities included in Level 1 are determined by reference to quoted prices in active markets for identical assets and liabilities. Financial assets and liabilities in Level 2 are valued using inputs other than quoted prices for which all significant inputs are based on observable market data. Level 3 valuations are based on inputs that are not based on observable market data. |
Leases [Policy Text Block] | (l) At inception, the Company assesses whether a contract contains an embedded lease. A contract contains a lease when the contract conveys a right to control the use of an identified asset for a period of time in exchange for consideration. The Company, as lessee, is required to recognize a right-of-use asset ("ROU asset"), representing its right to use the underlying asset, and a lease liability, representing its obligation to make lease payments. IFRS 16 Leases The Company recognizes a ROU asset and a lease liability at the commencement of the lease. The ROU asset is initially measured based on the present value of lease payments, plus initial direct cost, less any incentives received. It is subsequently measured at cost less accumulated amortization, impairment losses and adjusted for certain remeasurements of the lease liability. The ROU asset is amortized from the commencement date over the shorter of the lease term or the useful life of the underlying asset. The ROU asset is subject to testing for impairment if there is an indicator of impairment. The lease liability is initially measured at the present value of the lease payments that are not paid at the commencement date, discounted by the interest rate implicit in the lease, or if that rate cannot be readily determined, the incremental borrowing rate. The incremental borrowing rate is the rate which the operation would have to pay to borrow over a similar term and with similar security, the funds necessary to obtain an asset of similar value to the ROU asset in a similar economic environment. Lease payments included in the measurement of the lease liability are comprised of: • • • • • • The lease liability is subsequently increased by the interest cost on the lease liability and decreased by lease payments made. It is remeasured when there is a change in future lease payments arising from a change in an index or a rate, a change in the estimate of the amount expected to be payable under a residual value guarantee, or as appropriate, changes in the assessment of whether a purchase or extension option is reasonably certain to be exercised or a termination option is reasonably certain not to be exercised. Variable lease payments that do not depend on an index or a rate not included in the initial measurement of the ROU asset and lease liability are recognized as an expense in profit or loss in the period in which they are incurred. The ROU assets are presented within "Property, plant and equipment" and the lease liabilities are presented in "Lease liability" on the consolidated statements of financial position. |
SIGNIFICANT ACCOUNTING POLICI_3
SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Significant Accounting Policies [Abstract] | |
Disclosure of intangible assets with indefinite useful life [Table Text Block] | Patents - 5 years Rights - 2 years |
Disclosure of detailed information about estimated useful life or depreciation rate [Table Text Block] | Building – 4% declining-balance Production equipment – 20% declining-balance Vehicles – 30% declining-balance Leasehold improvements – 5 year straight-line Prototypes – 2 year straight-line |
FINANCIAL INSTRUMENTS (Tables)
FINANCIAL INSTRUMENTS (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure of detailed information about financial instruments [abstract] | |
Disclosure of detailed information about foreign currency risk [Table Text Block] | December 31, 2020 December 31, 2019 Cash $ 52,084 $ 76,389 Accounts receivable 92,210 66,035 Accounts payable (109,519 ) (197,967 ) $ (34,775 ) $ (55,543 ) |
INVENTORY (Tables)
INVENTORY (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Inventory [Abstract] | |
Disclosure of detailed information about inventories [Table Text Block] | December 31, 2020 December 31, 2019 Finished goods $ 124,290 $ 100,675 Raw materials and supplies 5,338,242 3,293,517 $ 5,462,532 $ 3,394,192 |
PROPERTY, PLANT AND EQUIPMENT (
PROPERTY, PLANT AND EQUIPMENT (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Property, plant and equipment [abstract] | |
Disclosure of detailed information about property, plant and equipment [Table Text Block] | Leasehold Production Cost Land Building Improvements Equipment Prototypes ROU Asset Total Balance, December 31, 2018 $ 12,558 $ 2,955,901 $ 43,715 $ 809,982 $ 406,160 $ — $ 4,228,316 Additions — — — 7,166 564,234 117,004 688,404 Balance, December 31, 2019 $ 12,558 $ 2,955,901 $ 43,715 $ 817,148 $ 970,394 $ 117,004 $ 4,916,720 Additions — 8,082 — 175,467 1,527,451 — 1,711,000 Balance, December 31, 2020 $ 12,558 $ 2,963,983 $ 43,715 $ 992,615 $ 2,497,845 $ 117,004 $ 6,627,720 Accumulated Amortization Balance, December 31, 2018 $ — $ 516,117 $ 35,622 $ 520,991 $ 67,693 $ — $ 1,140,423 Amortization — 97,592 1,619 58,515 216,365 12,212 386,303 Balance, December 31, 2019 $ — $ 613,709 $ 37,241 $ 579,506 $ 284,058 $ 12,212 $ 1,526,726 Amortization — 93,849 1,295 67,784 665,597 73,892 902,417 Balance, December 31, 2020 $ — $ 707,558 $ 38,536 $ 647,290 $ 949,655 $ 86,104 $ 2,429,143 Carrying Value December 31, 2019 $ 12,558 $ 2,342,192 $ 6,474 $ 237,642 $ 686,336 $ 104,792 $ 3,389,994 December 31, 2020 $ 12,558 $ 2,256,425 $ 5,179 $ 345,325 $ 1,548,190 $ 30,900 $ 4,198,577 |
INTANGIBLE ASSETS (Tables)
INTANGIBLE ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure of detailed information about intangible assets [abstract] | |
Disclosure of detailed information about intangible assets [Table Text Block] | Cost Patent Rights Total Balance, December 31, 2018 $ 40,840 $ 672,959 $ 1,041,809 Impairment — — (328,010 ) Balance, December 31, 2019 and 2020 $ 40,840 $ 672,959 $ 713,799 Accumulated Amortization Balance, December 31, 2018 $ 40,840 $ 65,000 $ 105,840 Amortization — — — Balance, December 31, 2019 and 2020 $ 40,840 $ 65,000 $ 105,840 Carrying Value December 31, 2019 and 2020 $ — $ 607,959 $ 607,959 |
LEASE LIABILITY (Tables)
LEASE LIABILITY (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Presentation of leases for lessee [abstract] | |
Disclosure of lease liability [Table Text Block] | Lease liability Warehouse Vehicles Total Lease liability recognized as of December 31, 2018 $ — $ — $ — Lease liability recognized 117,004 79,668 196,672 Lease payments (12,728 ) (7,746 ) (20,474 ) Lease interest 509 228 737 Lease liability recognized as of December 31, 2019 $ 104,785 $ 72,150 $ 176,935 Additions — 66,025 66,025 Lease payments (77,009 ) (22,586 ) (99,595 ) Lease interest 3,642 2,242 5,884 Leasing liability recognized as of December $ 31,418 $ 117,831 $ 149,249 Current portion $ 31,418 $ 20,325 $ 51,743 Long-term portion — 97,506 97,506 $ 31,418 $ 117,831 $ 149,249 |
Disclosure of detailed information about non-current contractual lease obligations [Table Text Block] | Year Amount 2022 $ 25,083 2023 56,815 2024 13,278 2025 5,533 $ 100,709 |
CAPITAL STOCK (Tables)
CAPITAL STOCK (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure Of Capital Stock Explanatory [Abstract] | |
Disclosure of number and weighted average remaining contractual life of outstanding share options [Table Text Block] | Exercise Expiry December 31, December 31, Price Date 2019 Granted Exercised Expired 2020 $1.30(USD) August 18, 2021 1,175,000 — — — 1,175,000 $0.90(USD) July 6, 2022 50,000 — — — 50,000 $0.30(USD) November 28, 2022 750,000 — — — 750,000 $0.50(USD) August 20, 2023 750,000 — — — 750,000 $0.57(USD) April 17, 2023 200,000 — — — 200,000 $1.45(USD) May 17, 2024 10,000 — — — 10,000 $0.78(USD) August 19, 2024 700,000 — — — 700,000 $0.82(USD) November 8, 2024 10,000 — — — 10,000 $0.76(USD) February 11, 2025 — 200,000 — — 200,000 $0.75(USD) August 18, 2025 — 750,000 — — 750,000 Total outstanding 3,645,000 950,000 — — 4,595,000 Total exercisable 2,831,667 316,665 — — 3,721,667 Exercise Expiry December 31, December 31, Price Date 2018 Granted Exercised Expired 2019 $0.70(CAD) October 7, 2019 28,571 — — (28,571 ) — $6.85(CAD) November 14, 2019 100,000 — — (100,000 ) — $1.30(USD) August 18, 2021 1,175,000 — — — 1,175,000 $0.90(USD) July 6, 2022 50,000 — — — 50,000 $0.30(USD) November 28, 2022 750,000 — — — 750,000 $0.50(USD) August 20, 2023 750,000 — — — 750,000 $0.57(USD) April 17, 2023 200,000 — — — 200,000 $1.45(USD) May 17, 2024 — 10,000 — — 10,000 $0.78(USD) August 19, 2024 — 700,000 — — 700,000 $0.82(USD) November 8, 2024 — 10,000 — — 10,000 Total outstanding 3,053,571 720,000 — (128,571 ) 3,645,000 Total exercisable 1,353,571 2,831,667 |
Disclosure of number and weighted average exercise prices of share options [Table Text Block] | Weighted Average Exercise Number Price Outstanding, December 31, 2018 3,053,571 $ 0.92 Granted 720,000 $ 0.79 Expired (128,571 ) $ 4.22 Outstanding, December 31, 2019 3,645,000 $ 0.78 Granted 950,000 $ 0.75 Outstanding, December 31, 2020 4,595,000 $ 0.78 |
Disclosure of detailed information about options, valuation assumptions [Table Text Block] | Year ended Year ended Year ended December 31, 2020 December 31, 2019 December 31, 2018 Risk-free interest rate (average) 0.51% 1.32% 2.15% Estimated volatility (average) 67.29% 69.93% 66.56% Expected life in years 5.00 5.00 5.00 Expected dividend yield 0.00% 0.00% 0.00% Estimated forfeitures 0.00% 0.00% 0.00% Grant date fair value per option $ 0.38 $ 0.45 $ 0.29 |
RELATED PARTY TRANSACTIONS (Tab
RELATED PARTY TRANSACTIONS (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure Of Related Party Transactions [Abstract] | |
Disclosure of information about key management personnel [Table Text Block] | December 31, December 31, December 31, 2020 2019 2018 Management compensation $ 641,845 $ 540,692 $ 540,535 Management bonus * 28,423 496,894 70,035 Share-based expense ** 335,155 255,902 262,261 Directors' fees 163,000 120,500 73,000 $ 1,168,423 $ 1,413,988 $ 945,831 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Income taxes paid (refund) [abstract] | |
Disclosure of deferred taxes [Table Text Block] | December 31, 2020 December 31, 2019 Deferred income tax assets Non-capital loss carry-forwards $ 22,609 $ 221,178 Deferred income tax assets $ 22,609 $ 221,178 Deficiency (excess) of carrying value over tax value $ — $ (195,048 ) Excess of carrying value over tax value of intangible (22,609 ) (26,130 ) Deferred income tax liability $ (22,609 ) $ (221,178 ) Net deferred tax asset (liability) $ — $ — |
Disclosure of temporary difference, unused tax losses and unused tax credits [Table Text Block] | December 31, December 31, Excess of tax value over carrying value of $ 1,536 $ 9,333 Non-capital losses carried forward 936,086 264,989 Property, plant and equipment 14,809 — Lease liability 40,297 79,896 Unrecognized deductible temporary differences $ 992,728 $ 354,218 |
Disclosure of detailed information about effective income tax expense (recovery) [Table Text Block] | December 31, December 31, December 31, Income (loss) before income taxes $ (1,307,890 ) $ 3,334,043 $ (56,711 ) Statutory income tax rate 27.00% 27.00% 27.00% Income tax (benefit) liability computed at (353,130 ) 900,192 (15,312 ) Items not deductible for income tax 147,116 (12,564 ) 77,417 Under provision of taxes in prior (84,532 ) 36,225 — Change in timing differences 499,718 135,130 (80,965 ) Impact of foreign exchange on tax assets (7,163 ) (39,116 ) (90,212 ) Difference between Canadian and foreign — — 3,403 Effect of change in tax rates — — (42,564 ) Unused tax losses and tax offsets not 33,082 (983,204 ) 148,233 Income tax expense (recovery) 235,091 36,663 — Penalties and interest included in income — 27,989 (290,818 ) Texas margin tax and branch tax 13,901 34,425 39,654 Income tax expense (recovery) $ 248,992 $ 99,077 $ (251,164 ) |
SUPPLEMENTAL CASH FLOW INFORM_2
SUPPLEMENTAL CASH FLOW INFORMATION (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure Of Supplemental Cash Flow Information [Abstract] | |
Disclosure of detailed information about supplemental cash flow information [Table Text Block] | December 31, December 31, December 31, 2020 2019 2018 Shares issued for intangible assets $ — $ — $ 131,527 Property, plant and equipment in accounts payable and accrued liabilities $ 28,280 $ 97,180 $ 34,402 Interest paid $ 9,088 $ 737 $ — Income taxes paid (recovered) $ 229,233 $ 487,206 $ (3,907 ) |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Earnings per share [abstract] | |
Disclosure of earnings per share [Table Text Block] | December 31, December 31, December 31, 2020 2019 2018 Net income (loss) for the year $ (1,307,890 ) $ 3,334,043 $ 194,453 Basic weighted average number of 47,170,086 47,170,086 47,117,369 Effect on dilutive securities: Options — 1,016,436 334,275 Diluted weighted average number of 47,170,086 48,186,522 47,451,644 Basic income (loss) per share $ (0.03 ) $ 0.07 $ 0.00 Diluted income (loss) per share $ (0.03 ) $ 0.07 $ 0.00 |
SIGNIFICANT CUSTOMERS (Tables)
SIGNIFICANT CUSTOMERS (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure of major customers [abstract] | |
Disclosure of operating segments [Table Text Block] | December 31, December 31, December 31, 2020 2019 2018 Customer A $ 5,505,214 $ 11,043,962 $ 6,158,718 Customer B $ 485,674 $ 2,660,840 $ 1,524,550 Customer C $ 2,710,540 $ 1,957,400 $ 1,093,303 Customer D $ 1,280,155 $ 308,443 $ 16,346 |
SIGNIFICANT ACCOUNTING POLICI_4
SIGNIFICANT ACCOUNTING POLICIES (Narrative) (Details) | 12 Months Ended |
Dec. 31, 2020 | |
Significant Accounting Policies [Abstract] | |
Description of annual franchise tax known as the Texas margin tax | the Texas margin tax, which is equal to 1% of the lesser of: (a) 70% of a taxable entity’s revenue; and (b) 100% of total revenue less, at the election of the taxpayer: (i) cost of goods sold; or (ii) compensation. |
FINANCIAL INSTRUMENTS (Narrativ
FINANCIAL INSTRUMENTS (Narrative) (Details) - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Disclosure of detailed information about financial instruments [line items] | ||||
Cash | $ 1,049,049 | $ 4,418,236 | $ 1,246,244 | $ 411,223 |
Accounts receivable | 535,659 | 1,824,563 | ||
Current liabilities | 958,086 | 1,795,745 | ||
Accounts payable and accrued liabilities | 814,777 | 1,638,020 | ||
Income tax payable | 91,566 | 71,341 | ||
Current portion of lease liability | 51,743 | 86,384 | ||
Credit risk [Member] | ||||
Disclosure of detailed information about financial instruments [line items] | ||||
Cash | 1,049,049 | 4,418,236 | ||
Accounts receivable | 535,659 | 1,824,563 | ||
Credit risk [Member] | Customer A [Member] | ||||
Disclosure of detailed information about financial instruments [line items] | ||||
Accounts receivable | 105,820 | 476,341 | ||
Credit risk [Member] | Customer B [Member] | ||||
Disclosure of detailed information about financial instruments [line items] | ||||
Accounts receivable | 15,349 | 172,842 | ||
Credit risk [Member] | Customer C [Member] | ||||
Disclosure of detailed information about financial instruments [line items] | ||||
Accounts receivable | 678,100 | |||
Credit risk [Member] | Customer D [Member] | ||||
Disclosure of detailed information about financial instruments [line items] | ||||
Accounts receivable | 150,300 | 149,066 | ||
Liquidity risk [Member] | ||||
Disclosure of detailed information about financial instruments [line items] | ||||
Cash | 1,049,049 | 4,418,236 | ||
Current liabilities | 958,086 | 1,795,745 | ||
Accounts payable and accrued liabilities | 786,354 | 1,100,376 | ||
Due to related party | 28,423 | 537,644 | ||
Income tax payable | 91,566 | 71,341 | ||
Current portion of lease liability | 51,743 | 86,384 | ||
Undiscounted contractual lease liabilities | $ 100,709 | $ 122,534 | ||
Currency risk [Member] | ||||
Disclosure of detailed information about financial instruments [line items] | ||||
Sensitivity analysis, confidence interval | 2.00% | 14.00% | ||
Value at risk | $ 696 | $ 7,776 |
INVENTORY (Narrative) (Details)
INVENTORY (Narrative) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure Of Inventory [Line Items] | |||
Inventory write-off | $ 114,066 | $ 62,402 | $ 26,031 |
Cost of Goods Sold [Member] | |||
Disclosure Of Inventory [Line Items] | |||
Direct material costs recognized as expense | $ 4,937,761 | $ 9,443,243 | $ 5,974,854 |
PROPERTY, PLANT AND EQUIPMENT_2
PROPERTY, PLANT AND EQUIPMENT (Narrative) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Included in cost of goods sold [Member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Amortization related to property, plant and equipment | $ 134,067 | $ 131,617 | $ 179,645 |
Included in expenses [Member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Amortization related to property, plant and equipment | 140,178 | 69,271 | 21,435 |
Included in inventory [Member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Amortization related to property, plant and equipment | 3,712 | 1,476 | 5,902 |
Included in research [Member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Amortization related to property, plant and equipment | 624,460 | 183,939 | 67,693 |
Vehicles under lease [Member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Amortization related to property, plant and equipment | 11,433 | ||
Included in prototype [Member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Additions | $ 66,025 | $ 79,668 |
INTANGIBLE ASSETS (Narrative) (
INTANGIBLE ASSETS (Narrative) (Details) - USD ($) | Nov. 10, 2016 | Dec. 31, 2020 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2010 | Dec. 31, 2019 |
Disclosure of detailed information about intangible assets [line items] | ||||||
Sales royalty | 5.00% | |||||
Acquisition costs | $ 217,946 | |||||
Payments for intangible assets | 25,000 | |||||
Common shares issued to acquire intangible assets | 250,000 | |||||
Common shares issued to acquire intangible assets, value | $ 192,946 | |||||
Consulting agreement, fee per month | 10,000 | |||||
Payments for consulting agreement, further consideration | $ 75,000 | |||||
Shares issued for consulting agreement, further consideration | 750,000 | |||||
Consulting agreement, royalty on net sales | 2.50% | |||||
Intangible assets | $ 607,959 | $ 607,959 | ||||
Manway securement systems [Member] | ||||||
Disclosure of detailed information about intangible assets [line items] | ||||||
Sales royalty | 5.00% | |||||
Product development costs [Member] | ||||||
Disclosure of detailed information about intangible assets [line items] | ||||||
Intangible assets | 328,010 | |||||
Impairment of intangible assets | $ 328,010 | |||||
On the filing of the first new patent application related to the Products [Member] | ||||||
Disclosure of detailed information about intangible assets [line items] | ||||||
Payments for consulting agreement, further consideration | $ 25,000 | |||||
Shares issued for consulting agreement, further consideration | 250,000 | |||||
Fair value of common shares | $ 208,486 | |||||
On the successful completion of a commercially viable production prototype for the first Product [Member] | ||||||
Disclosure of detailed information about intangible assets [line items] | ||||||
Payments for consulting agreement, further consideration | $ 25,000 | |||||
Shares issued for consulting agreement, further consideration | 250,000 | |||||
Fair value of common shares | $ 131,527 | |||||
On completion of the sale of the first ten commercial vehicles incorporating the Product [Member] | ||||||
Disclosure of detailed information about intangible assets [line items] | ||||||
Payments for consulting agreement, further consideration | $ 25,000 | |||||
Shares issued for consulting agreement, further consideration | 250,000 |
CAPITAL STOCK (Narrative) (Deta
CAPITAL STOCK (Narrative) (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Exercise of options | $ 2,500 | |||
Common shares issued to acquire intangible assets | 250,000 | |||
Common shares issued to acquire intangible assets, value | $ 192,946 | |||
Description of stock option plan | Under the Plan, the Company is authorized to issue options to purchase an aggregate of up to 10% of the Company's issued and outstanding common shares. | |||
Weighted average remaining contractual life of outstanding share options | 2 years 6 months 7 days | 3 years | ||
Share-based expense | $ 423,538 | $ 345,498 | $ 403,548 | |
Class A, convertible, voting, preferred shares [Member] | ||||
Number of shares authorised | 5,000,000 | |||
Capital Stock [Member] | ||||
Exercise of options (Shares) | 8,334 | |||
Exercise of options | $ 3,763 | |||
Proceeds from exercise of options | 2,500 | |||
Reserves [Member] | ||||
Exercise of options | (1,263) | |||
Share-based expense | $ 423,538 | $ 345,498 | $ 403,548 | |
Technology development agreement [Member] | ||||
Common shares issued to acquire intangible assets | 250,000 | |||
Common shares issued to acquire intangible assets, value | $ 131,527 |
RELATED PARTY TRANSACTIONS (Nar
RELATED PARTY TRANSACTIONS (Narrative) (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Related Party [Line Items] | ||
Description of transactions with related party | The Company has management bonus agreements whereby 10% of the annual income before taxes, amortization and share-based expense is equally distributed to management. | |
Amounts payable, related party transactions | $ 28,423 | $ 537,644 |
Directors' fees [Member] | ||
Related Party [Line Items] | ||
Amounts payable, related party transactions | 40,750 | |
Management bonus [Member] | ||
Related Party [Line Items] | ||
Amounts payable, related party transactions | $ 28,423 | $ 496,894 |
INCOME TAXES (Narrative) (Detai
INCOME TAXES (Narrative) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income taxes paid (refund) [abstract] | |||
Non-capital losses in the US that may be applied against future taxable income | |||
Statutory income tax rate | 27.00% | 27.00% | 27.00% |
SIGNIFICANT CUSTOMERS (Narrativ
SIGNIFICANT CUSTOMERS (Narrative) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of major customers [abstract] | |||
Sales royalty | 5.00% | ||
Revenue from manway securement systems | $ 10,500 | $ 133,486 | $ 13,301 |
EMPLOYEE BENEFITS (Narrative) (
EMPLOYEE BENEFITS (Narrative) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of information about defined benefit plans [abstract] | |||
Employee benefits expenses | $ 3,803,757 | $ 4,451,529 | $ 3,275,011 |
SEGMENTED INFORMATION (Narrativ
SEGMENTED INFORMATION (Narrative) (Details) - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
CANADA | ||
Disclosure of operating segments [line items] | ||
Long-term assets | $ 2,001,034 | $ 1,399,087 |
UNITED STATES | ||
Disclosure of operating segments [line items] | ||
Long-term assets | $ 2,941,310 | $ 2,347,234 |
SUBSEQUENT EVENTS (Narrative) (
SUBSEQUENT EVENTS (Narrative) (Details) | Nov. 10, 2016 | Dec. 31, 2020CAD ($)$ / sharesshares | Dec. 31, 2020USD ($)shares |
Disclosure of non-adjusting events after reporting period [line items] | |||
Consulting agreement, royalty on net sales | 2.50% | ||
Subsequent Events [Member] | |||
Disclosure of non-adjusting events after reporting period [line items] | |||
Proceeds from issue of units | $ | $ 6,370,000 | ||
Number of units issued | shares | 7,000,000 | 7,000,000 | |
Price per unit issued | $ 0.91 | ||
Subsequent Events [Member] | Year one [Member] | |||
Disclosure of non-adjusting events after reporting period [line items] | |||
Exercise price of warrants issued | 1.15 | ||
Subsequent Events [Member] | Year two [Member] | |||
Disclosure of non-adjusting events after reporting period [line items] | |||
Exercise price of warrants issued | $ 1.30 | ||
Subsequent Events [Member] | Technology development agreement [Member] | |||
Disclosure of non-adjusting events after reporting period [line items] | |||
Consulting agreement monthly amount | $ | $ 10,000 | ||
Consulting agreement, royalty on net sales | 2.50% | 2.50% |
SIGNIFICANT ACCOUNTING POLICI_5
SIGNIFICANT ACCOUNTING POLICIES - Disclosure of intangible assets with indefinite useful life (Details) | 12 Months Ended |
Dec. 31, 2020 | |
Patents [Member] | |
Disclosure of detailed information about intangible assets [line items] | |
Useful lives or amortisation rates, intangible assets other than goodwill | 5 years |
Rights [Member] | |
Disclosure of detailed information about intangible assets [line items] | |
Useful lives or amortisation rates, intangible assets other than goodwill | 2 years |
SIGNIFICANT ACCOUNTING POLICI_6
SIGNIFICANT ACCOUNTING POLICIES - Disclosure of detailed information about estimated useful life or depreciation rate (Details) | 12 Months Ended |
Dec. 31, 2020 | |
Building [Member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Depreciation rate, property, plant and equipment | 4.00% |
Depreciation method of property, plant and equipment | declining-balance |
Production equipment [Member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Depreciation rate, property, plant and equipment | 20.00% |
Depreciation method of property, plant and equipment | declining-balance |
Vehicles [Member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Depreciation rate, property, plant and equipment | 30.00% |
Depreciation method of property, plant and equipment | declining-balance |
Leasehold improvements [Member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Depreciation rate, property, plant and equipment | 5.00% |
Depreciation method of property, plant and equipment | straight-line |
Prototypes [Member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Depreciation rate, property, plant and equipment | 2.00% |
Depreciation method of property, plant and equipment | straight-line |
FINANCIAL INSTRUMENTS - Disclos
FINANCIAL INSTRUMENTS - Disclosure of detailed information about foreign currency risk (Details) - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Disclosure of detailed information about financial instruments [line items] | ||||
Cash and cash equivalents | $ 1,049,049 | $ 4,418,236 | $ 1,246,244 | $ 411,223 |
Accounts receivable | 535,659 | 1,824,563 | ||
Accounts payable | (814,777) | (1,638,020) | ||
Amounts held in CAD [Member] | ||||
Disclosure of detailed information about financial instruments [line items] | ||||
Cash and cash equivalents | 52,084 | 76,389 | ||
Accounts receivable | 92,210 | 66,035 | ||
Accounts payable | (109,519) | (197,967) | ||
Net assets (liabilities) | $ (34,775) | $ (55,543) |
INVENTORY - Disclosure of detai
INVENTORY - Disclosure of detailed information about inventories (Details) - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Inventory [Abstract] | ||
Finished goods | $ 124,290 | $ 100,675 |
Raw materials and supplies | 5,338,242 | 3,293,517 |
Inventory | $ 5,462,532 | $ 3,394,192 |
PROPERTY, PLANT AND EQUIPMENT -
PROPERTY, PLANT AND EQUIPMENT - Disclosure of detailed information about property, plant and equipment (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Disclosure of detailed information about property, plant and equipment [line items] | ||
Property, plant and equipment at beginning of period | $ 3,389,994 | |
Property, plant and equipment at end of period | 4,198,577 | $ 3,389,994 |
Cost [Member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Property, plant and equipment at beginning of period | 4,916,720 | 4,228,316 |
Additions | 1,711,000 | 688,404 |
Property, plant and equipment at end of period | 6,627,720 | 4,916,720 |
Accumulated Amortization [Member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Property, plant and equipment at beginning of period | 1,526,726 | 1,140,423 |
Amortization | 902,417 | 386,303 |
Property, plant and equipment at end of period | 2,429,143 | 1,526,726 |
Land [Member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Property, plant and equipment at beginning of period | 12,558 | |
Property, plant and equipment at end of period | 12,558 | 12,558 |
Land [Member] | Cost [Member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Property, plant and equipment at beginning of period | 12,558 | 12,558 |
Additions | 0 | 0 |
Property, plant and equipment at end of period | 12,558 | 12,558 |
Land [Member] | Accumulated Amortization [Member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Property, plant and equipment at beginning of period | 0 | 0 |
Amortization | 0 | 0 |
Property, plant and equipment at end of period | 0 | 0 |
Building [Member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Property, plant and equipment at beginning of period | 2,342,192 | |
Property, plant and equipment at end of period | 2,256,425 | 2,342,192 |
Building [Member] | Cost [Member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Property, plant and equipment at beginning of period | 2,955,901 | 2,955,901 |
Additions | 8,082 | 0 |
Property, plant and equipment at end of period | 2,963,983 | 2,955,901 |
Building [Member] | Accumulated Amortization [Member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Property, plant and equipment at beginning of period | 613,709 | 516,117 |
Amortization | 93,849 | 97,592 |
Property, plant and equipment at end of period | 707,558 | 613,709 |
Leasehold Improvements [Member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Property, plant and equipment at beginning of period | 6,474 | |
Property, plant and equipment at end of period | 5,179 | 6,474 |
Leasehold Improvements [Member] | Cost [Member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Property, plant and equipment at beginning of period | 43,715 | 43,715 |
Additions | 0 | 0 |
Property, plant and equipment at end of period | 43,715 | 43,715 |
Leasehold Improvements [Member] | Accumulated Amortization [Member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Property, plant and equipment at beginning of period | 37,241 | 35,622 |
Amortization | 1,295 | 1,619 |
Property, plant and equipment at end of period | 38,536 | 37,241 |
Production Equipment [Member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Property, plant and equipment at beginning of period | 237,642 | |
Property, plant and equipment at end of period | 345,325 | 237,642 |
Production Equipment [Member] | Cost [Member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Property, plant and equipment at beginning of period | 817,148 | 809,982 |
Additions | 175,467 | 7,166 |
Property, plant and equipment at end of period | 992,615 | 817,148 |
Production Equipment [Member] | Accumulated Amortization [Member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Property, plant and equipment at beginning of period | 579,506 | 520,991 |
Amortization | 67,784 | 58,515 |
Property, plant and equipment at end of period | 647,290 | 579,506 |
Prototypes [Member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Property, plant and equipment at beginning of period | 686,336 | |
Property, plant and equipment at end of period | 1,548,190 | 686,336 |
Prototypes [Member] | Cost [Member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Property, plant and equipment at beginning of period | 970,394 | 406,160 |
Additions | 1,527,451 | 564,234 |
Property, plant and equipment at end of period | 2,497,845 | 970,394 |
Prototypes [Member] | Accumulated Amortization [Member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Property, plant and equipment at beginning of period | 284,058 | 67,693 |
Amortization | 665,597 | 216,365 |
Property, plant and equipment at end of period | 949,655 | 284,058 |
ROU Asset [Member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Property, plant and equipment at beginning of period | 104,792 | |
Property, plant and equipment at end of period | 30,900 | 104,792 |
ROU Asset [Member] | Cost [Member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Property, plant and equipment at beginning of period | 117,004 | 0 |
Additions | 0 | 117,004 |
Property, plant and equipment at end of period | 117,004 | 117,004 |
ROU Asset [Member] | Accumulated Amortization [Member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Property, plant and equipment at beginning of period | 12,212 | 0 |
Amortization | 73,892 | 12,212 |
Property, plant and equipment at end of period | $ 86,104 | $ 12,212 |
INTANGIBLE ASSETS - Disclosure
INTANGIBLE ASSETS - Disclosure of detailed information about intangible assets (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Disclosure of detailed information about intangible assets [line items] | ||
Intangible assets at beginning of period | $ 607,959 | |
Intangible assets at end of period | 607,959 | $ 607,959 |
Cost [Member] | ||
Disclosure of detailed information about intangible assets [line items] | ||
Intangible assets at beginning of period | 713,799 | 1,041,809 |
Impairment | (328,010) | |
Intangible assets at end of period | 713,799 | 713,799 |
Accumulated Amortization [Member] | ||
Disclosure of detailed information about intangible assets [line items] | ||
Intangible assets at beginning of period | 105,840 | 105,840 |
Amortization | 0 | 0 |
Intangible assets at end of period | 105,840 | 105,840 |
Patents [Member] | ||
Disclosure of detailed information about intangible assets [line items] | ||
Intangible assets at beginning of period | 0 | |
Intangible assets at end of period | 0 | 0 |
Patents [Member] | Cost [Member] | ||
Disclosure of detailed information about intangible assets [line items] | ||
Intangible assets at beginning of period | 40,840 | 40,840 |
Impairment | 0 | |
Intangible assets at end of period | 40,840 | 40,840 |
Patents [Member] | Accumulated Amortization [Member] | ||
Disclosure of detailed information about intangible assets [line items] | ||
Intangible assets at beginning of period | 40,840 | 40,840 |
Amortization | 0 | |
Intangible assets at end of period | 40,840 | 40,840 |
Rights [Member] | ||
Disclosure of detailed information about intangible assets [line items] | ||
Intangible assets at beginning of period | 607,959 | |
Intangible assets at end of period | 607,959 | 607,959 |
Rights [Member] | Cost [Member] | ||
Disclosure of detailed information about intangible assets [line items] | ||
Intangible assets at beginning of period | 672,959 | 672,959 |
Impairment | 0 | |
Intangible assets at end of period | 672,959 | 672,959 |
Rights [Member] | Accumulated Amortization [Member] | ||
Disclosure of detailed information about intangible assets [line items] | ||
Intangible assets at beginning of period | 65,000 | 65,000 |
Amortization | 0 | 0 |
Intangible assets at end of period | $ 65,000 | $ 65,000 |
LEASE LIABILITY - Disclosure of
LEASE LIABILITY - Disclosure of detailed information about lease liability (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Disclosure Of Quantitative Information About Lease Liability [Line Items] | ||
Lease liability, beginning of year | $ 176,935 | $ 0 |
Additions | 66,025 | |
Lease liability recognized | 196,672 | |
Lease payments | (99,595) | (20,474) |
Lease interest | 5,884 | 737 |
Lease liability, end of year | 149,249 | 176,935 |
Current portion | 51,743 | 86,384 |
Long-term portion | 97,506 | 90,551 |
Warehouse [Member] | ||
Disclosure Of Quantitative Information About Lease Liability [Line Items] | ||
Lease liability, beginning of year | 104,785 | 0 |
Additions | 0 | |
Lease liability recognized | 117,004 | |
Lease payments | (77,009) | (12,728) |
Lease interest | 3,642 | 509 |
Lease liability, end of year | 31,418 | 104,785 |
Current portion | 31,418 | |
Long-term portion | 0 | |
Vehicles [Member] | ||
Disclosure Of Quantitative Information About Lease Liability [Line Items] | ||
Lease liability, beginning of year | 72,150 | 0 |
Additions | 66,025 | |
Lease liability recognized | 79,668 | |
Lease payments | (22,586) | (7,746) |
Lease interest | 2,242 | 228 |
Lease liability, end of year | 117,831 | $ 72,150 |
Current portion | 20,325 | |
Long-term portion | $ 97,506 |
LEASE LIABILITY - Disclosure _2
LEASE LIABILITY - Disclosure of detailed information about non-current contractual lease obligations (Detail) | Dec. 31, 2020USD ($) |
Disclosure of maturity analysis of operating lease payments [line items] | |
Non-current contractual lease obligations | $ 100,709 |
2022 [Member] | |
Disclosure of maturity analysis of operating lease payments [line items] | |
Non-current contractual lease obligations | 25,083 |
2023 [Member] | |
Disclosure of maturity analysis of operating lease payments [line items] | |
Non-current contractual lease obligations | 56,815 |
2024 [Member] | |
Disclosure of maturity analysis of operating lease payments [line items] | |
Non-current contractual lease obligations | 13,278 |
2025 [Member] | |
Disclosure of maturity analysis of operating lease payments [line items] | |
Non-current contractual lease obligations | $ 5,533 |
CAPITAL STOCK - Disclosure of n
CAPITAL STOCK - Disclosure of number and weighted average remaining contractual life of outstanding share options (Details) | 12 Months Ended | ||
Dec. 31, 2020Share$ / sharesshares | Dec. 31, 2019Share$ / shares | Dec. 31, 2019$ / shares | |
Disclosure of range of exercise prices of outstanding share options [line items] | |||
Total outstanding, beginning of period | 3,645,000 | 3,053,571 | |
Granted | 950,000 | 720,000 | |
Exercised | 0 | 0 | |
Expired | 0 | (128,571) | |
Total outstanding, end of period | 4,595,000 | 3,645,000 | |
Total exercisable, beginning of period | 2,831,667 | 1,353,571 | |
Total exercisable Granted | shares | 316,665 | ||
Total exercisable, end of period | 3,721,667 | 2,831,667 | |
Expire October 7, 2019 [Member] | |||
Disclosure of range of exercise prices of outstanding share options [line items] | |||
Exercise Price | $ / shares | $ 0.70 | ||
Total outstanding, beginning of period | 0 | 28,571 | |
Granted | 0 | ||
Exercised | 0 | ||
Expired | (28,571) | ||
Total outstanding, end of period | 0 | ||
Expire November 14, 2019 [Member] | |||
Disclosure of range of exercise prices of outstanding share options [line items] | |||
Exercise Price | $ / shares | $ 6.85 | ||
Total outstanding, beginning of period | 0 | 100,000 | |
Granted | 0 | ||
Exercised | 0 | ||
Expired | (100,000) | ||
Total outstanding, end of period | 0 | ||
Expire August 18, 2021 [Member] | |||
Disclosure of range of exercise prices of outstanding share options [line items] | |||
Exercise Price | $ / shares | $ 1.30 | $ 1.30 | |
Total outstanding, beginning of period | 1,175,000 | 1,175,000 | |
Granted | 0 | 0 | |
Exercised | 0 | 0 | |
Expired | 0 | 0 | |
Total outstanding, end of period | 1,175,000 | 1,175,000 | |
Expire July 6, 2022 [Member] | |||
Disclosure of range of exercise prices of outstanding share options [line items] | |||
Exercise Price | $ / shares | $ 0.90 | 0.90 | |
Total outstanding, beginning of period | 50,000 | 50,000 | |
Granted | 0 | 0 | |
Exercised | 0 | 0 | |
Expired | 0 | 0 | |
Total outstanding, end of period | 50,000 | 50,000 | |
Expire November 28, 2022 [Member] | |||
Disclosure of range of exercise prices of outstanding share options [line items] | |||
Exercise Price | $ / shares | $ 0.30 | 0.30 | |
Total outstanding, beginning of period | 750,000 | 750,000 | |
Granted | 0 | 0 | |
Exercised | 0 | 0 | |
Expired | 0 | 0 | |
Total outstanding, end of period | 750,000 | 750,000 | |
Expire August 20, 2023 [Member] | |||
Disclosure of range of exercise prices of outstanding share options [line items] | |||
Exercise Price | $ / shares | $ 0.50 | 0.50 | |
Total outstanding, beginning of period | 750,000 | 750,000 | |
Granted | 0 | 0 | |
Exercised | 0 | 0 | |
Expired | 0 | 0 | |
Total outstanding, end of period | 750,000 | 750,000 | |
Expire April 17, 2023 [Member] | |||
Disclosure of range of exercise prices of outstanding share options [line items] | |||
Exercise Price | $ / shares | $ 0.57 | 0.57 | |
Total outstanding, beginning of period | 200,000 | 200,000 | |
Granted | 0 | 0 | |
Exercised | 0 | 0 | |
Expired | 0 | 0 | |
Total outstanding, end of period | 200,000 | 200,000 | |
Expire May 17, 2024 [Member] | |||
Disclosure of range of exercise prices of outstanding share options [line items] | |||
Exercise Price | $ / shares | $ 1.45 | 1.45 | |
Total outstanding, beginning of period | 10,000 | 0 | |
Granted | 0 | 10,000 | |
Exercised | 0 | 0 | |
Expired | 0 | 0 | |
Total outstanding, end of period | 10,000 | 10,000 | |
Expire August 19, 2024 [Member] | |||
Disclosure of range of exercise prices of outstanding share options [line items] | |||
Exercise Price | $ / shares | $ 0.78 | 0.78 | |
Total outstanding, beginning of period | 700,000 | 0 | |
Granted | 0 | 700,000 | |
Exercised | 0 | 0 | |
Expired | 0 | 0 | |
Total outstanding, end of period | 700,000 | 700,000 | |
Expire November 8, 2024 [Member] | |||
Disclosure of range of exercise prices of outstanding share options [line items] | |||
Exercise Price | $ / shares | $ 0.82 | $ 0.82 | |
Total outstanding, beginning of period | 10,000 | 0 | |
Granted | 0 | 10,000 | |
Exercised | 0 | 0 | |
Expired | 0 | 0 | |
Total outstanding, end of period | 10,000 | 10,000 | |
Expire February 11, 2025 [Member] | |||
Disclosure of range of exercise prices of outstanding share options [line items] | |||
Exercise Price | $ / shares | $ 0.76 | ||
Total outstanding, beginning of period | 0 | ||
Granted | 200,000 | ||
Exercised | 0 | ||
Expired | 0 | ||
Total outstanding, end of period | 200,000 | 0 | |
Expire August 18, 2025 [Member] | |||
Disclosure of range of exercise prices of outstanding share options [line items] | |||
Exercise Price | $ / shares | $ 0.75 | ||
Total outstanding, beginning of period | 0 | ||
Granted | 750,000 | ||
Exercised | 0 | ||
Expired | 0 | ||
Total outstanding, end of period | 750,000 | 0 |
CAPITAL STOCK - Disclosure of_2
CAPITAL STOCK - Disclosure of number and weighted average exercise prices of share options (Details) | 12 Months Ended | |
Dec. 31, 2020Share$ / shares | Dec. 31, 2019Share$ / shares | |
Disclosure Of Capital Stock Explanatory [Abstract] | ||
Total outstanding, beginning of period | Share | 3,645,000 | 3,053,571 |
Weighted average exercise price of share options outstanding in share-based payment arrangement at beginning of period | $ / shares | $ 0.78 | $ 0.92 |
Number of share options granted in share-based payment arrangement | Share | 950,000 | 720,000 |
Weighted average exercise price of share options granted in share-based payment arrangement | $ / shares | $ 0.75 | $ 0.79 |
Number of share options expired in share-based payment arrangement | Share | 0 | (128,571) |
Weighted average exercise price of share options expired in share-based payment arrangement | $ / shares | $ 4.22 | |
Total outstanding, end of period | Share | 4,595,000 | 3,645,000 |
Weighted average exercise price of share options outstanding in share-based payment arrangement at end of period | $ / shares | $ 0.78 | $ 0.78 |
CAPITAL STOCK - Disclosure of d
CAPITAL STOCK - Disclosure of detailed information about options, valuation assumptions (Details) | 12 Months Ended | ||
Dec. 31, 2020USD ($)Year | Dec. 31, 2019USD ($)Year | Dec. 31, 2018USD ($)Year | |
Disclosure Of Capital Stock Explanatory [Abstract] | |||
Risk-free interest rate (average) | 0.51% | 1.32% | 2.15% |
Estimated volatility (average) | 67.29% | 69.93% | 66.56% |
Expected life in years | Year | 5 | 5 | 5 |
Expected dividend yield | 0.00% | 0.00% | 0.00% |
Estimated forfeitures | 0.00% | 0.00% | 0.00% |
Grant date fair value per option | $ | $ 0.38 | $ 0.45 | $ 0.29 |
RELATED PARTY TRANSACTIONS - Di
RELATED PARTY TRANSACTIONS - Disclosure of information about key management personnel (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure Of Related Party Transactions [Abstract] | |||
Management compensation | $ 641,845 | $ 540,692 | $ 540,535 |
Management bonus | 28,423 | 496,894 | 70,035 |
Share-based expense | 335,155 | 255,902 | 262,261 |
Directors' fees | 163,000 | 120,500 | 73,000 |
Total remuneration | $ 1,168,423 | $ 1,413,988 | $ 945,831 |
INCOME TAXES - Disclosure of de
INCOME TAXES - Disclosure of deferred taxes (Details) - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Deferred Income Tax Assets And Liabilities [Line Items] | ||
Non-capital loss carry-forwards | $ 22,609 | $ 221,178 |
Deferred income tax assets | 22,609 | 221,178 |
Deferred income tax liability | (22,609) | (221,178) |
Net deferred tax asset (liability) | 0 | 0 |
Deficiency (excess) of carrying value over tax value of property, plant and equipment [Member] | ||
Deferred Income Tax Assets And Liabilities [Line Items] | ||
Deferred income tax liability | 0 | (195,048) |
Excess of carrying value over tax value of intangible assets [Member] | ||
Deferred Income Tax Assets And Liabilities [Line Items] | ||
Deferred income tax liability | $ (22,609) | $ (26,130) |
INCOME TAXES - Disclosure of te
INCOME TAXES - Disclosure of temporary difference, unused tax losses and unused tax credits (Details) - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Unrecognized deductible temporary differences | $ 992,728 | $ 354,218 |
Excess of tax value over carrying value of mineral properties [Member] | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Unrecognized deductible temporary differences | 1,536 | 9,333 |
Non-capital losses carried forward [Member] | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Unrecognized deductible temporary differences | 936,086 | 264,989 |
Property, plant and equipment [Member] | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Unrecognized deductible temporary differences | 14,809 | 0 |
Lease liability (Member] | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Unrecognized deductible temporary differences | $ 40,297 | $ 79,896 |
INCOME TAXES - Disclosure of _2
INCOME TAXES - Disclosure of detailed information about effective income tax expense recovery (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income taxes paid (refund) [abstract] | |||
Income (loss) before income taxes | $ (1,307,890) | $ 3,334,043 | $ (56,711) |
Statutory income tax rate | 27.00% | 27.00% | 27.00% |
Income tax (benefit) liability computed at statutory tax rate | $ (353,130) | $ 900,192 | $ (15,312) |
Items not deductible for income tax purposes | 147,116 | (12,564) | 77,417 |
Under provision of taxes in prior years | (84,532) | 36,225 | 0 |
Change in timing differences | 499,718 | 135,130 | (80,965) |
Impact of foreign exchange on tax assets and liabilities | (7,163) | (39,116) | (90,212) |
Difference between Canadian and foreign taxes | 0 | 0 | 3,403 |
Effect of change in tax rates | 0 | 0 | (42,564) |
Unused tax losses and tax offsets not recognized | 33,082 | (983,204) | 148,233 |
Income tax expense (recovery) | 235,091 | 36,663 | 0 |
Penalties and interest included in income tax expense (recovery) | 0 | 27,989 | (290,818) |
Texas margin tax and branch tax | 13,901 | 34,425 | 39,654 |
Income tax expense (recovery) | $ 248,992 | $ 99,077 | $ (251,164) |
SUPPLEMENTAL CASH FLOW INFORM_3
SUPPLEMENTAL CASH FLOW INFORMATION - Disclosure of detailed information about supplemental cash flow information (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure Of Supplemental Cash Flow Information [Abstract] | |||
Shares issued for intangible assets | $ 0 | $ 0 | $ 131,527 |
Property, plant and equipment in accounts payable and accrued liabilities | 28,280 | 97,180 | 34,402 |
Interest paid | 9,088 | 737 | 0 |
Income taxes paid (recovered) | $ 229,233 | $ 487,206 | $ (3,907) |
EARNINGS PER SHARE - Disclosure
EARNINGS PER SHARE - Disclosure of earnings per share (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Earnings per share [abstract] | |||
Net income (loss) for the year | $ (1,307,890) | $ 3,334,043 | $ 194,453 |
Basic weighted average number of common shares outstanding | 47,170,086 | 47,170,086 | 47,117,369 |
Effect on dilutive securities: Options | 0 | 1,016,436 | 334,275 |
Diluted weighted average number of common shares outstanding | 47,170,086 | 48,186,522 | 47,451,644 |
Basic income (loss) per share | $ (0.03) | $ 0.07 | $ 0 |
Diluted income (loss) per share | $ (0.03) | $ 0.07 | $ 0 |
SIGNIFICANT CUSTOMERS - Disclos
SIGNIFICANT CUSTOMERS - Disclosure of operating segments (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of major customers [line items] | |||
Revenues | $ 11,149,130 | $ 20,550,682 | $ 12,716,596 |
Customer A [Member] | |||
Disclosure of major customers [line items] | |||
Revenues | 5,505,214 | 11,043,962 | 6,158,718 |
Customer B [Member] | |||
Disclosure of major customers [line items] | |||
Revenues | 485,674 | 2,660,840 | 1,524,550 |
Customer C [Member] | |||
Disclosure of major customers [line items] | |||
Revenues | 2,710,540 | 1,957,400 | 1,093,303 |
Customer D [Member] | |||
Disclosure of major customers [line items] | |||
Revenues | $ 1,280,155 | $ 308,443 | $ 16,346 |