Document and Entity Information
Document and Entity Information | 12 Months Ended |
Dec. 31, 2022 shares | |
Document Information [Line Items] | |
Document Type | 20-F |
Amendment Flag | false |
Document Period End Date | Dec. 31, 2022 |
Entity Central Index Key | 0001161814 |
Entity Registrant Name | KELSO TECHNOLOGIES INC. |
Current Fiscal Year End Date | --12-31 |
Entity Filer Category | Non-accelerated Filer |
Document Registration Statement | false |
Document Annual Report | true |
Document Transition Report | false |
Document Shell Company Report | false |
Entity File Number | 001-36685 |
Entity Incorporation, State or Country Code | Z4 |
Entity Address, Address Line One | 13966 18B Avenue |
Entity Address, City or Town | Surrey |
Entity Address, State or Province | BC |
Entity Address, Postal Zip Code | V4A8J1 |
Entity Address, Country | CA |
Title of 12(b) Security | Common Shares Without Par Value |
Trading Symbol | KIQ |
Security Exchange Name | NYSE |
Entity Common Stock, Shares Outstanding | 54,320,086 |
Entity Interactive Data Current | No |
Entity Current Reporting Status | Yes |
Entity Voluntary Filers | No |
Entity Well Known Seasoned Issuer | No |
Document Fiscal Year Focus | 2022 |
Document Fiscal Period Focus | FY |
Entity Ex Transition Period | false |
Entity Emerging Growth Company | true |
Document Accounting Standard | International Financial Reporting Standards |
Entity Shell Company | false |
Auditor Firm ID | 995 |
Auditor Location | Vancouver, Canada |
Auditor Name | Smythe LLP |
Business Contact [Member] | |
Document Information [Line Items] | |
Entity Address, Address Line One | 13966 18B Avenue |
Entity Address, City or Town | Surrey |
Entity Address, State or Province | BC |
Entity Address, Postal Zip Code | V4A8J1 |
Entity Address, Country | CA |
Contact Personnel Name | James R. Bond |
Local Phone Number | 590.1525 |
City Area Code | 604 |
Consolidated Statements of Fina
Consolidated Statements of Financial Position - USD ($) | Dec. 31, 2022 | Dec. 31, 2021 |
Current | ||
Cash | $ 2,712,446 | $ 3,377,464 |
Accounts receivable | 1,381,979 | 807,009 |
Prepaid expenses | 92,768 | 161,490 |
Inventory | 4,144,196 | 5,534,558 |
Total current assets | 8,331,389 | 9,880,521 |
Property, plant and equipment | 3,277,262 | 3,246,394 |
Deposit | 67,181 | 127,643 |
Intangible assets | 471,311 | 473,952 |
Total assets | 12,147,143 | 13,728,510 |
Current | ||
Accounts payable and accrued liabilities | 1,184,463 | 1,118,573 |
Income tax payable | 30,626 | 0 |
Current portion of lease liability | 112,067 | 91,783 |
Derivative warrant liability | 3,665 | 0 |
Total current liabilities | 1,330,821 | 1,210,356 |
Long term portion of lease liability | 34,650 | 195,930 |
Derivative warrant liability | 0 | 267,111 |
Total liabilities | 1,365,471 | 1,673,397 |
Shareholders' Equity | ||
Capital Stock | 27,123,039 | 27,123,039 |
Reserves | 4,840,083 | 4,758,107 |
Deficit | (21,181,450) | (19,826,033) |
Stockholders' equity | 10,781,672 | 12,055,113 |
Total liabilities and stockholders' equity | $ 12,147,143 | $ 13,728,510 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Equity - USD ($) | Capital Stock [Member] | Reserve [Member] | Deficit [Member] | Total |
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 | ||
Exercise of options (Shares) | 150,000 | |||
Net 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 | |||
Share-based expense | 133,645 | 133,645 | ||
Private placement, net of issue costs | $ 3,664,112 | 3,664,112 | ||
Private placement, net of issue costs (Shares) | 7,000,000 | |||
Exercise of options | $ 92,385 | (37,385) | 55,000 | |
Exercise of options (Shares) | 150,000 | |||
Net loss for the year | (2,758,567) | (2,758,567) | ||
Balance at Dec. 31, 2021 | $ 27,123,039 | 4,758,107 | (19,826,033) | 12,055,113 |
Balance (Shares) at Dec. 31, 2021 | 54,320,086 | |||
Share-based expense | 163,051 | 163,051 | ||
Repurchase of RSU | (81,075) | (81,075) | ||
Net loss for the year | (1,355,417) | (1,355,417) | ||
Balance at Dec. 31, 2022 | $ 27,123,039 | $ 4,840,083 | $ (21,181,450) | $ 10,781,672 |
Balance (Shares) at Dec. 31, 2022 | 54,320,086 |
Consolidated Statements of Oper
Consolidated Statements of Operations and Comprehensive Loss - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Statement | |||
Revenues | $ 10,931,188 | $ 7,425,707 | $ 11,149,130 |
Cost of Goods Sold | 6,022,192 | 4,229,215 | 6,356,452 |
Gross Profit | 4,908,996 | 3,196,492 | 4,792,678 |
Expenses | |||
Office and administration | 2,278,467 | 2,243,413 | 2,074,623 |
Management compensation | 720,003 | 720,923 | 670,269 |
Research | 1,068,708 | 1,697,497 | 1,391,712 |
Marketing | 409,256 | 353,010 | 365,193 |
Travel | 111,235 | 64,419 | 52,497 |
Accounting and legal | 518,543 | 271,613 | 312,213 |
Share-based expense | 163,051 | 133,645 | 423,538 |
Consulting | 318,846 | 325,024 | 265,507 |
Investor relations | 84,000 | 84,000 | 84,000 |
Foreign exchange (gain) loss | 55,231 | (78,428) | (11,254) |
Amortization | 399,652 | 437,865 | 140,178 |
Bad debts | 0 | 2,000 | 0 |
Total Expenses | 6,126,992 | 6,254,981 | 5,768,476 |
Loss Before the Following: | (1,217,996) | (3,058,489) | (975,798) |
Interest income | 0 | 0 | 30,966 |
Gain on repurchase of RSUs | 45,806 | 0 | 0 |
Gain on revaluation of derivative warrant liability | 263,446 | 658,626 | 0 |
Gain (loss) on sale of property, plant, and equipment | (20,602) | 8,389 | 0 |
Write-off of inventory | (260,040) | (117,403) | (114,066) |
Unit issuance costs | 0 | (77,051) | 0 |
Loss Before Taxes: | (1,189,386) | (2,585,928) | (1,058,898) |
Income Tax Expense | |||
Current | 166,031 | 172,639 | 248,992 |
Net Loss and Comprehensive Loss for the Year | $ (1,355,417) | $ (2,758,567) | $ (1,307,890) |
Basic Loss Per Share (in dollar per share) | $ (0.02) | $ (0.05) | $ (0.03) |
Diluted Loss Per Share (in dollar per share) | $ (0.02) | $ (0.05) | $ (0.03) |
Weighted Average Number of Common Shares Outstanding | |||
Basic (in shares) | 54,320,086 | 53,082,689 | 47,170,086 |
Diluted (in shares) | 54,320,086 | 53,082,689 | 47,170,086 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Operating Activities | |||
Net loss | $ (1,355,417) | $ (2,758,567) | $ (1,307,890) |
Items not involving cash: | |||
Amortization | 1,044,222 | 1,573,091 | 898,705 |
Write-off of inventory | 260,040 | 117,403 | 114,066 |
Loss (gain) on sale of property, plant and equipment | 20,602 | (8,389) | 0 |
Share-based expense | 163,051 | 133,645 | 423,538 |
Bad debts | 0 | 2,000 | 0 |
Gain on repurchase of RSUs | (45,806) | 0 | 0 |
Gain on revaluation of derivative warrant liability | (263,446) | (658,626) | 0 |
Unrealized foreign exchange gain | (31,648) | (9,631) | (100) |
Cash flows from (used in) operations before changes in working capital | (208,402) | (1,609,074) | 128,319 |
Changes in non-cash working capital | |||
Accounts receivable | (574,970) | (273,350) | 1,288,904 |
Prepaid expenses | 68,722 | 1,249 | (66,112) |
Inventory | 1,133,347 | (182,655) | (2,178,694) |
Accounts payable and accrued liabilities | (134,915) | 332,076 | (754,343) |
Income tax payable | 30,626 | (91,566) | 20,225 |
Changes in non-cash working capital | 522,810 | (214,246) | (1,690,020) |
Cash Provided by (Used in) Operating Activities | 314,408 | (1,823,320) | (1,561,701) |
Investing Activities | |||
Proceeds from disposition of property, plant and equipment | 27,339 | 27,704 | 0 |
Acquisition of property, plant and equipment | (754,020) | (131,382) | (1,713,875) |
Deposit on intangible assets | 0 | (127,643) | 0 |
Acquisition of intangible assets | (148,814) | (169,973) | 0 |
Cash Used in Investing Activities | (875,495) | (401,294) | (1,713,875) |
Financing Activities | |||
Issue of common shares, net of issue costs | 0 | 4,589,849 | 0 |
Exercise of options | 0 | 55,000 | 0 |
Repurchase of RSUs | (35,269) | 0 | 0 |
Lease liability payments | (100,310) | (104,493) | (93,711) |
Cash Provided by (Used in) Financing Activities | (135,579) | 4,540,356 | (93,711) |
Foreign Exchange Effect on Cash | 31,648 | 12,673 | 100 |
Inflow (Outflow) of Cash | (665,018) | 2,328,415 | (3,369,187) |
Cash, Beginning of Year | 3,377,464 | 1,049,049 | 4,418,236 |
Cash, End of Year | $ 2,712,446 | $ 3,377,464 | $ 1,049,049 |
NATURE OF OPERATIONS
NATURE OF OPERATIONS | 12 Months Ended |
Dec. 31, 2022 | |
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, 2022 | |
Basis Of Preparation [Abstract] | |
BASIS OF PREPARATION [Text Block] | 2. BASIS OF PREPARATION (a) Statement of compliance These audited 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., KIQ X 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, Canada. Intercompany transactions and balances have been eliminated on consolidation. Subsidiaries are 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 to accounting estimates 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. 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). Intangible assets with indefinite useful lives and those not in use are tested for impairment annually. 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 loss and credited to reserves, over the vesting period using the graded vesting method, after adjusting for the estimated number of awards that are expected to vest. The Company measures the cost of equity-settled transactions by reference to the fair value of the equity instruments at the date at which they are granted for share-based payments made to employees or others providing similar services. Estimating fair value for share-based payment transactions requires determining the most appropriate valuation model, which is dependent on the terms and conditions of the grant. This estimate also requires making assumption to determine the most appropriate inputs to the valuation model including the fair value of the underlying common shares, the expected life of the share option or warrant, volatility and dividend yield. 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 share-based awards. Warrant liabilities are accounted for as derivative liabilities as they are exercisable in Canadian dollars (note 10). (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) 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 is 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 judgment in determining whether the contract contains an identified asset, whether they have the right to control the asset, and the lease term. (e) The consolidated financial statements of the Company for year ended December 31, 2022 were approved and authorized for issue by the Board of Directors on March 29, 2023. (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, 2022 | |
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. When a circumstance that previously caused inventories to be written down below cost no longer exist or when there is clear evidence of an increase in net realizable value because of changed economic circumstances, the amount of the write-down is reversed. The amount of the reversal is limited to the amount of the original write-down. (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. 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 Intellectual Property - 7 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 and accumulated impairment losses, if any. 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 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 are recognised when all 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 with definite useful lives 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. Intangible assets not yet available for use or those with indefinite useful lives are tested annually for impairment. 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 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 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 has a stock option plan, restricted share unit plan, and deferred share unit plan, which are described in note 11. The Company grants equity-settled share-based awards to directors, officers, employees, and consultants. Share-based expense to employees is measured at the fair value of the equity instruments at the grant date. The fair value of share options is measured using the Black-Scholes option pricing model. Restricted and deferred share units are measured using the fair value of the shares on the grant date. The share-based expense to employees is recognized over the vesting period using the graded vesting method. Fair value of share-based expenses for non-employees is recognized and measured at the date the good 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 instrument issued. For both employees and non-employees, the fair value of share-based expense is recognized on the consolidated statements of operations and comprehensive 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. Canadian dollar denominated share purchase warrants are classified as a derivative warrant liability under the principles of IFRS 9 Financial Instruments Financial Instruments: Presentation (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 loss. The Company classifies cash as measured at fair value through profit or 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. The Company classifies accounts receivable and prepaid expenses as measured at amortized cost. 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. The Company classifies accounts payable and accrued liabilities, income tax payable and lease liabilities as measured at amortized cost. 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. The Company classifies derivative warrant liabilities as measured at FVTPL. 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. (m) The Company incurs costs on activities that relate to research and development of new products. Research and development costs are expensed, except in cases where development costs meet certain identifiable criteria for deferral, including technical and economic feasibility. Development costs are capitalized only if the expenditures can be measured reliably, the product or process is technically and commercially feasible, future economic benefits are probable, and the Company intends to, and has sufficient resources to, complete development and to use or sell the asset. Deferred development costs are amortized over the life of related commercial production, or in the case of serviceable property and equipment, are included in the appropriate property group and are depreciated over its estimated useful life. As at December 31, 2022, the Company has capitalized $471,311 (2021 - $169,973) of research and development costs as part of intellectual property. |
CAPITAL MANAGEMENT
CAPITAL MANAGEMENT | 12 Months Ended |
Dec. 31, 2022 | |
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, 2022. There are no externally imposed restrictions on the Company's capital. |
FINANCIAL INSTRUMENTS
FINANCIAL INSTRUMENTS | 12 Months Ended |
Dec. 31, 2022 | |
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, accounts payable and accrued liabilities and income tax payable, as their carrying values approximate their fair values due to their short-term nature. The derivative warrant liability and lease liability are classified as level 2 and 3, respectively. 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 is held with major Canadian and US financial institutions and the Company's concentration of credit risk for cash and maximum exposure thereto is $2,712,446 (2021 - $3,377,464). 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 $1,240,625 (2021 - $690,823). The Company's concentration of credit risk for accounts receivable with respect to its significant customers is as follows: Customer A is $224,954 (2021 - $93,865), Customer B is $436,400 (2021 - $47,250) and Customer C is $148,270 (2021 - $155,520) (Note 15). 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. The Company's aging of accounts receivable, excluding goods and services tax receivable, at December 31, 2022 and 2021 is as follows: December 31, 2022 December 31, 2021 Current $ 644,713 $ 341,746 1 - 60 days 537,080 319,346 61 days and over 58,832 27,952 $ 1,240,625 $ 689,044 (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, 2022, the Company has $2,712,446 (2021 - $3,377,464) of cash to settle current liabilities of $1,330,821 (2021 - $1,210,356) consisting of the following: accounts payable and accrued liabilities of $1,184,463 (2021 - $1,118,573), income tax payable of $30,626 (2021 - $nil), the current portion of lease liability of $112,067 (2021 - $91,783), and the current portion of the derivative liability of $3,665 (2021 - $nil). 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 $164,469 (2021 - $307,456), which are due between one to three years (Note 9). (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, 2022 and 2021 the Company had the following net monetary assets (liabilities) denominated in CAD (amounts presented in USD): December 31, 2022 December 31, 2021 Cash $ 63,799 $ 1,210,548 Accounts receivable 141,354 116,186 Accounts payable and accrued liabilities (267,124 ) (116,573 ) $ (61,971 ) $ 1,210,161 Based on the above, assuming all other variables remain constant at 7% (2021 - 1%) weakening or strengthening of the USD against the CAD would result in approximately $4,338 (2021 - $12,102) foreign exchange loss or gain in the consolidated statements of operations and comprehensive loss. |
INVENTORY
INVENTORY | 12 Months Ended |
Dec. 31, 2022 | |
Inventory [Abstract] | |
INVENTORY [Text Block] | 6. INVENTORY December 31, 2022 December 31, 2021 Finished goods $ 132,266 $ 172,865 Raw materials and supplies 4,011,930 5,361,693 $ 4,144,196 $ 5,534,558 Included in cost of goods sold is $4,695,464 (2021 - $3,091,973) of direct material costs recognized as expense. Inventory written off during the year was $260,040 (2021 - $117,403). |
PROPERTY, PLANT AND EQUIPMENT
PROPERTY, PLANT AND EQUIPMENT | 12 Months Ended |
Dec. 31, 2022 | |
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, 2020 $ 12,558 $ 2,963,983 $ 43,715 $ 992,615 $ 2,497,845 $ 117,004 $ 6,627,720 Additions - - - 63,465 85,156 199,466 348,087 Disposals - - - (31,854 ) - - (31,854 ) Balance, December 31, 2021 $ 12,558 $ 2,963,983 $ 43,715 $ 1,024,226 $ 2,583,001 $ 316,470 $ 6,943,953 Additions - - - 29,191 833,572 - 862,763 Disposals - - - (21,347 ) (77,684 ) - (99,031 ) Balance, December 31, 2022 $ 12,558 $ 2,963,983 $ 43,715 $ 1,032,070 $ 3,338,889 $ 316,470 $ 7,707,685 Accumulated Amortization Balance, December 31, 2020 $ - $ 707,558 $ 38,536 $ 647,290 $ 949,655 $ 86,104 $ 2,429,143 Amortization - 90,257 1,036 76,346 1,027,480 80,766 1,275,885 Disposals - - - (7,469 ) - - (7,469 ) Balance, December 31, 2021 $ - $ 797,815 $ 39,572 $ 716,167 $ 1,977,135 $ 166,870 $ 3,697,559 Amortization - 85,356 4,143 61,364 525,916 66,489 743,268 Disposals - - - (5,942 ) (4,462 ) - (10,404 ) Balance, December 31, 2022 $ - $ 883,171 $ 43,715 $ 771,589 $ 2,498,589 $ 233,359 $ 4,430,423 Carrying Value December 31, 2022 $ 12,558 $ 2,080,812 $ - $ 260,481 $ 840,300 $ 83,111 $ 3,277,262 December 31, 2021 $ 12,558 $ 2,166,168 $ 4,143 $ 308,059 $ 605,866 $ 149,600 $ 3,246,394 Included in inventory is $3,025 (2021 - $6,774; 2020 - $3,712) of amortization related to property, plant and equipment. Included in cost of goods sold is $118,654 (2021 - $131,580; 2020 - $134,067) of amortization related to property, plant and equipment. Included in amortization expenses is $95,673 (2021 - $133,885; 2020 - $140,178) of amortization related to property, plant and equipment. Included in research expense is $525,916 (2021 - $1,011,445; 2020 - $624,460) of amortization related to property, plant and equipment. |
INTANGIBLE ASSETS
INTANGIBLE ASSETS | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure of detailed information about intangible assets [abstract] | |
INTANGIBLE ASSETS [Text Block] | 8. INTANGIBLE ASSETS Cost Patent Rights Intellectual Total Balance, December 31, 2020 $ 40,840 $ 672,959 $ - $ 713,799 Additions - - 169,973 169,973 Balance, December 31, 2021 $ 40,840 $ 672,959 $ 169,973 $ 883,772 Additions - - 301,338 301,338 Balance, December 31, 2022 $ 40,840 $ 672,959 $ 471,311 $ 1,185,110 Accumulated Amortization Balance, December 31, 2020 $ 40,840 $ 65,000 $ - $ 105,840 Amortization - 303,980 - 303,980 Balance, December 31, 2021 $ 40,840 $ 368,980 $ - $ 409,820 Amortization - 303,979 - 303,979 Balance, December 31, 2022 $ 40,840 $ 672,959 $ - $ 713,799 Carrying Value December 31, 2022 $ - $ - $ 471,311 $ 471,311 December 31, 2021 $ - $ 303,979 $ 169,973 $ 473,952 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 was to 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, 2022 the Company has not earned any revenue from the sale of the Products. On March 3, 2021, the Company terminated the technology development agreement, including the consulting agreement for $10,000 per month. The Company will still maintain all intellectual property rights acquired under the agreement and will still be liable for the 2.5% royalty. This termination is currently in the arbitration process pursuant to the terms of the agreement. On October 25, 2021, the Company entered into a technology services agreement with a third-party developer (the "Agreement") to further develop its internal intellectual property related to the active suspension control system for no road vehicles. The Agreement consists of total payments of $650,734 ($825,000 CAD) over the term which is estimated to be eight months. Intellectual property developed under the Agreement will be the property of the Company and certain background technology of the developer will be licensed by the Company for the purpose of manufacturing and selling the related products. The royalty payment for the license will be $27,000 CAD per year for a period of 10 years (the "License Fee") with the first year fee waived and the second year discounted 50%. If the Company purchases a minimum of 10 control systems designed under the Agreement in any year, the License Fee for that year will be waived. The Company may receive an unrestricted license to use the background technology of the developer at any time by paying the cumulative remaining License Fees plus a one-time payment of $50,000. During the year ended December 31, 2022, the Company incurred a total of $301,338 (2021 - $56,416) with this vendor which was capitalized to intellectual property. In addition, the Company had a deposit of $67,181 (2021 - $127,643) at December 31, 2022 to be applied over the term of the Agreement. |
LEASE LIABILITY
LEASE LIABILITY | 12 Months Ended |
Dec. 31, 2022 | |
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 years ended December 31, 2022 and 2021 is as follows: Lease liability Warehouse Vehicles Total Lease liability, as of December 31, 2020 $ 31,418 $ 117,831 $ 149,249 Additions 199,466 43,491 242,957 Lease payments (84,353 ) (31,769 ) (116,122 ) Lease interest 6,757 4,872 11,629 Lease liability, December 31, 2021 $ 153,288 $ 134,425 $ 287,713 Disposals - (40,686 ) (40,686 ) Lease payments (77,835 ) (32,668 ) (110,503 ) Lease interest 6,357 3,836 10,193 Leasing liability recognized as of December 31, 2022 $ 81,810 $ 64,907 $ 146,717 Current portion $ 65,013 $ 47,054 $ 112,067 Long-term portion 16,797 17,853 34,650 $ 81,810 $ 64,907 $ 146,717 The Company's undiscounted contractual lease obligations are as follows: Year Amount 2023 $ 128,370 2024 30,806 2025 5,293 $ 164,469 |
DERIVATIVE WARRANT LIABILITY
DERIVATIVE WARRANT LIABILITY | 12 Months Ended |
Dec. 31, 2022 | |
Derivative Warrant Liability [Abstract] | |
DERIVATIVE WARRANT LIABILITY [Text Block] | 10. DERIVATIVE WARRANT LIABILITY The Company's derivative warrant liability arises as a result of the issuance of warrants exercisable in CAD. As the denomination is different from the Company's USD functional currency, the Company recognizes a derivative liability for these warrants and remeasures the liability at the end of each reporting period. Changes in respect of the Company's derivative warrant liability are as follows: Balance, December 31, 2020 $ - Fair value of warrants issued 925,737 Fair value adjustment (658,626 ) Balance, December 31, 2021 $ 267,111 Fair value adjustment (263,446 ) Balance, December 31, 2022 $ 3,665 Valuation of the derivative warrant liability requires the use of highly subjective estimates and assumptions. The expected volatility used is based on the Company's historical share prices. The risk-free interest rate for the periods within the expected life of the warrants is based on Canadian government benchmark bond with an approximate equivalent term. The expected life is based on the contractual term. Changes in the underlying assumptions can materially affect the fair value estimates. On December 31, 2021, the Company revalued the derivative warrant liability at an estimated fair value of $267,111. The Company uses an option pricing model to estimate the liability's fair value. The following weighted average assumptions were used: As of December 31, At Issuance - 2022 2021 March 4, 2021 Risk-free interest rate 4.06% 0.95% 0.28% Expected life 0.17 years 1.17 years 2.00 years Annualized volatility 87.88% 96.32% 81.02% Dividend yield 0.00% 0.00% 0.00% Fair value per warrant $ 0.001 $ 0.079 $ 0.261 |
CAPITAL STOCK
CAPITAL STOCK | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure Of Capital Stock Explanatory [Abstract] | |
CAPITAL STOCK [Text Block] | 11. 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) There were no share issuances during the year ended December 31, 2022. During the year ended December 31, 2021, the Company issued 7,000,000 units at $0.91 CAD per unit pursuant to a private placement for gross proceeds of $4,922,510 ($6,370,000 CAD). Each unit consists of one common share and one-half share purchase warrant expiring two years from the date of issue. Each whole warrant entitles the holder thereof to acquire one common share at a price of $1.15 CAD in year one and $1.30 CAD in year two. At issuance, the remainder of the proceeds from the private placement financing, after subtracting the value of the derivative warrant liability (Note 10) in the amount of $925,737, totaling $3,996,773, was allocated to issued capital using the residual method. In connection with the private placement, the Company incurred issuance costs of $409,712, of which $77,051 was recorded as unit issuance costs in the consolidated statements of operations and comprehensive loss. During the year ended December 31, 2021, the Company issued 150,000 shares pursuant to the exercise of stock options for gross proceeds of $55,000. A value of $37,385 was transferred from reserves to share capital as a result. (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, Forfeited/ December 31, Price Date 2021 Granted Exercised Expired 2022 $0.90 July 6, 2022 50,000 - - (50,000) - $0.30 November 28, 2022 650,000 - - (650,000) - $0.57 April 17, 2023 200,000 - - - 200,000 $0.50 August 20, 2023 700,000 - - - 700,000 $1.45 May 17, 2024 10,000 - - - 10,000 $0.78 August 19, 2024 700,000 - - - 700,000 $0.82 November 8, 2024 10,000 - - - 10,000 $0.76 February 11, 2025 200,000 - - - 200,000 $0.75 August 18, 2025 750,000 - - - 750,000 Total outstanding 3,270,000 - - (700,000) 2,570,000 Total exercisable 2,953,333 - - (700,000) 2,570,000 Exercise Expiry December 31, Forfeited/ December 31, Price Date 2020 Granted Exercised Expired 2021 $1.30 August 18, 2021 1,175,000 - - (1,175,000) - $0.90 July 6, 2022 50,000 - - - 50,000 $0.30 November 28, 2022 750,000 - (100,000) - 650,000 $0.57 April 17, 2023 200,000 - - - 200,000 $0.50 August 20, 2023 750,000 - (50,000) - 700,000 $1.45 May 17, 2024 10,000 - - - 10,000 $0.78 August 19, 2024 700,000 - - - 700,000 $0.82 November 8, 2024 10,000 - - - 10,000 $0.76 February 11, 2025 200,000 - - - 200,000 $0.75 August 18, 2025 750,000 - - - 750,000 Total outstanding 4,595,000 - (150,000) (1,175,000) 3,270,000 Total exercisable 3,721,667 - (150,000) (1,175,000) 2,953,333 A summary of the Company's stock options as at December 31, 2022 and 2021, and changes for the years then ended, are as follows: Weighted Average Exercise Number Price Outstanding, December 31, 2020 4,595,000 $ 0.78 Exercised (150,000 ) $ 0.37 Expired (1,175,000 ) $ 1.30 Outstanding, December 31, 2021 3,270,000 $ 0.61 Forfeited (10,000 ) $ 0.30 Expired (690,000 ) $ 0.34 Outstanding and exercisable, December 31, 2022 2,570,000 $ 0.68 The weighted average contractual life for the remaining options at December 31, 2022 is 1.59 (2021 - 2.22) years. Share-based expense Share-based expense of $7,733 (2021 - $108,696; 2020 - $423,538) was recognized during the year ended December 31, 2022 for stock options. The share-based expense relates to options granted during the year ended December 31, 2020, 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 December 31, 2020 Risk-free interest rate (average) 0.51% Estimated volatility (average) 67.29% Expected life in years 5.00 Expected dividend yield 0.00% Estimated forfeitures 0.00% Grant date fair value per option $ 0.38 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. (c) Warrants outstanding as at December 31, 2022 are summarized below: Share Purchase Weighted average warrants exercise price Outstanding, December 31, 2020 - $ - Issued 3,500,005 $ 1.03 (1) Outstanding, December 31, 2021 3,500,005 $ 1.02 (2) Outstanding, December 31, 2022 3,500,005 $ 0.96 (2) (1) These warrants are denominated in CAD and have been translated based on the exchange rate in effect on date of issuance of March 4, 2021 of $1.00 = $1.2637. (2) These warrants are denominated in CAD and have been re-translated based on the exchange rate in effect as at December 31, 2022 of $1.00 = $1.3544 CAD (2021 - $1.00 = $1.2678 CAD). The warrants outstanding at December 31, 2022 expire on March 4, 2023 and have a remaining life of 0.17 years at December 31, 2022. Subsequent to December 31, 2022, the warrants expired unexercised. (d) On April 28, 2021, the Company implemented a Restricted Share Unit Plan, (the "RSU Plan"). Pursuant to the RSU Plan, the Company will grant restricted share units ("RSUs") to directors, officers, employees, and consultants for services as approved from time to time by the Board. The maximum number of common shares made available for issuance pursuant to the RSU Plan shall not exceed 5% of common shares issued and outstanding and shall not exceed 10% of the common shares issued and outstanding less any common shares reserved for issuance under all other share compensation arrangements. The vesting terms, settlement, and method of settlement of the RSUs granted under the RSU Plan will be determined by the Board of Directors. A summary of the Company's RSUs as at December 31, 2022 and 2021, and changes for the years then ended, is as follows: Equity settled Outstanding, December 31, 2020 - Granted 355,000 Outstanding, December 31, 2021 355,000 Forfeited (2,500 ) Repurchased (117,500 ) Granted 410,000 Outstanding, December 31, 2022 645,000 During the year ended December 31, 2022, the Company granted 410,000 (2021 - 355,000) equity settled RSUs with an estimated fair value of $123,000 (2021 - $244,950), based on the fair market value of one common share on the date of issuance. The fair value will be recognized as an expense using the graded vesting method over the vesting period, with 33% vesting one year after grant and 33% every year thereafter. Upon vesting, the equity settled RSUs may be repurchased in cash at the discretion of the Company, with the cash payment based on the closing share price of the RSUs on the date of vesting. On October 27, 2022, the Company repurchased 117,500 RSUs with a fair value of $81,025, through a cash payment of $35,269, based on a share price of $0.30 on vesting date, and recorded a gain on repurchase of RSUs of $45,806. In connection with the RSUs awarded, the Company recognized share-based expense of $155,318 (2021 - $24,949) for the year ended December 31, 2022. (e) On April 28, 2021, the Company implemented a Non-Employee Directors Deferred Share Unit Plan (the "DSU Plan"). Pursuant to the DSU Plan, non-employee directors may elect to receive deferred share units ("DSUs") in lieu of a cash payment of up to 50% of their annual base compensation determined by the Board. The maximum number of common shares made available for issuance pursuant to the DSU Plan shall not exceed 2% of the common shares issued and outstanding and shall not exceed 10% of the common shares issued and outstanding less any common shares reserved for issuance under all other share compensation agreements. At December 31, 2022 and 2021, no DSUs have been granted to non-employee directors. |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure Of Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS [Text Block] | 12. 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, 2022 2021 2020 Management compensation $ 720,003 $ 720,923 $ 641,845 Management bonus * - - 28,423 Share-based expense ** 105,792 104,250 335,155 Directors' fees 163,000 163,000 163,000 RSU payment ** * 23,000 - - $ 1,011,795 $ 988,173 $ 1,168,423 * ** *** During the year ended December 31, 2022, the Company paid consulting fees of $60,000 (2021 - $60,000; 2020 - $55,000) to a consulting company owned by the spouse of the Chief Executive Officer. As at December 31, 2022, amounts due to related parties included in accounts payable and accrued liabilities, which are unsecured and have no interest or specific terms, consist of $ Nil Nil Nil Nil |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2022 | |
Income taxes paid (refund) [abstract] | |
INCOME TAXES [Text Block] | 13. INCOME TAXES The Company has $Nil in non-capital losses in the US that may be applied against future taxable income. The tax effect items that give rise to significant portions of the deferred income tax assets and deferred income tax liabilities at December 31, 2022 and 2021 are as follows: December 31, December 31, Deferred income tax assets Non-capital loss carry-forwards $ 309,510 $ 216,826 Intangible Assets 38,740 - Deferred income tax assets $ 348,250 $ 216,826 Excess of carrying value over tax value of property, plant and equipment $ (348,250 ) $ (216,826 ) Deferred income tax liability $ (348,250 ) $ (216,826 ) 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, 2022 and 2021 are as follows: December 31, 2022 December 31, 2021 Excess of tax value over carrying value of $ 955 $ 1,135 Non-capital losses carried forward 1,725,619 1,411,411 Intangible assets 123,623 49,992 Derivative warrant liability 990 72,120 Lease liability 39,614 77,682 Unrecognized deductible temporary differences $ 1,890,801 $ 1,612,340 Income tax expense differs from the amount that would be computed by applying the Canadian statutory income tax rate of 27.00% (2021 and 2020 - 27.00%) to loss before income taxes as follows: December 31, December 31, December 31, Loss before income taxes $ (1,189,386 ) $ (2,758,567 ) $ (1,307,890 ) Statutory income tax rate 27.00% 27.00% 27.00% Income tax benefit computed at statutory tax rate (321,134 ) (744,813 ) (353,130 ) Items not deductible for income tax purposes 34,640 (107,916 ) 147,116 Under (over) provision of taxes in prior years 4,469 99,873 (84,532 ) Change in timing differences 234,499 91,007 499,718 Impact of foreign exchange on tax assets and liabilities 44,097 4,444 (7,163 ) Unused tax losses and tax offsets not recognized 147,036 813,044 33,082 Income tax expense 143,607 155,639 235,091 Texas margin tax and branch tax 22,424 17,000 13,901 Income tax expense $ 166,031 $ 172,639 $ 248,992 |
SUPPLEMENTAL CASH FLOW INFORMAT
SUPPLEMENTAL CASH FLOW INFORMATION | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure Of Supplemental Cash Flow Information [Abstract] | |
SUPPLEMENTAL CASH FLOW INFORMATION [Text Block] | 14. SUPPLEMENTAL CASH FLOW INFORMATION December 31, December 31, December 31, 2022 2021 2020 Property, plant and equipment additions in accounts payable and accrued liabilities $ 108,743 $ - $ 28,280 Intangible asset additions in accounts payable and accrued liabilities $ 92,062 $ - $ - Deposit applied to intangible assets $ 60,462 $ - $ - Interest paid $ 10,193 $ 9,054 $ 9,088 Income taxes paid $ 57,611 $ 342,000 $ 229,233 |
SIGNIFICANT CUSTOMERS
SIGNIFICANT CUSTOMERS | 12 Months Ended |
Dec. 31, 2022 | |
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 revenues: December 31, December 31, December 31, 2022 2021 2020 Customer A $ 5,312,839 $ 2,787,027 $ 5,505,214 Customer B $ 1,837,438 $ 932,248 $ 2,710,540 Customer C $ 1,131,112 $ 1,314,843 $ 1,280,155 The customers are major US 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 (Note 8). During the year ended December 31, 2022, there were revenues from sales of the manway securement systems totaling $350,035 (2021 - $11,000). |
EMPLOYEE BENEFITS
EMPLOYEE BENEFITS | 12 Months Ended |
Dec. 31, 2022 | |
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, 2022 amounted to $3,570,149 (2021 - $3,627,056). |
SEGMENTED INFORMATION
SEGMENTED INFORMATION | 12 Months Ended |
Dec. 31, 2022 | |
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 the development of the KXI HD control system for no road vehicles. As at December 31, 2022, long-term assets of $1,506,666 (2021 - $1,250,676) relate to the heavy-duty suspension control system located in Canada and $2,309,088 (2021 - $2,597,313) relate to the rail sector located in the United States. There has been no revenue related to the heavy-duty suspension control system to December 31, 2022 from the inception of the project. |
CONTINGENT LIABILITY
CONTINGENT LIABILITY | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure of contingent liabilities [abstract] | |
CONTINGENT LIABILITY [Text Block] | 18. CONTINGENT LIABILITY Pursuant to a technology development agreement dated November 10, 2016 between the Company and G&J Technologies Inc. and Gebhard Wager, the parties entered into an arbitration hearing in the Fall of 2022 to settle several disputed claims. The Company anticipates that it will have to monetarily settle these claims but the amount is undetermined at this time. |
SIGNIFICANT ACCOUNTING POLICI_2
SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2022 | |
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. When a circumstance that previously caused inventories to be written down below cost no longer exist or when there is clear evidence of an increase in net realizable value because of changed economic circumstances, the amount of the write-down is reversed. The amount of the reversal is limited to the amount of the original write-down. |
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. 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 Intellectual Property - 7 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 and accumulated impairment losses, if any. 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 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 are recognised when all 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 with definite useful lives 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. Intangible assets not yet available for use or those with indefinite useful lives are tested annually for impairment. 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 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 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 has a stock option plan, restricted share unit plan, and deferred share unit plan, which are described in note 11. The Company grants equity-settled share-based awards to directors, officers, employees, and consultants. Share-based expense to employees is measured at the fair value of the equity instruments at the grant date. The fair value of share options is measured using the Black-Scholes option pricing model. Restricted and deferred share units are measured using the fair value of the shares on the grant date. The share-based expense to employees is recognized over the vesting period using the graded vesting method. Fair value of share-based expenses for non-employees is recognized and measured at the date the good 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 instrument issued. For both employees and non-employees, the fair value of share-based expense is recognized on the consolidated statements of operations and comprehensive 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. Canadian dollar denominated share purchase warrants are classified as a derivative warrant liability under the principles of IFRS 9 Financial Instruments Financial Instruments: Presentation |
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 loss. The Company classifies cash as measured at fair value through profit or 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. The Company classifies accounts receivable and prepaid expenses as measured at amortized cost. 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. The Company classifies accounts payable and accrued liabilities, income tax payable and lease liabilities as measured at amortized cost. 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. The Company classifies derivative warrant liabilities as measured at FVTPL. 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. |
Research and development [Policy Text Block] | (m) The Company incurs costs on activities that relate to research and development of new products. Research and development costs are expensed, except in cases where development costs meet certain identifiable criteria for deferral, including technical and economic feasibility. Development costs are capitalized only if the expenditures can be measured reliably, the product or process is technically and commercially feasible, future economic benefits are probable, and the Company intends to, and has sufficient resources to, complete development and to use or sell the asset. Deferred development costs are amortized over the life of related commercial production, or in the case of serviceable property and equipment, are included in the appropriate property group and are depreciated over its estimated useful life. As at December 31, 2022, the Company has capitalized $471,311 (2021 - $169,973) of research and development costs as part of intellectual property. |
SIGNIFICANT ACCOUNTING POLICI_3
SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Significant Accounting Policies [Abstract] | |
Disclosure of detailed information about intangible assets with indefinite useful life [Table Text Block] | Patents - 5 years Rights - 2 years Intellectual Property - 7 years |
Disclosure of detailed information about estimated useful life or depreciation rate [Table Text Block] | Building - 4% declining-balance Production equipment - 20% declining-balance Leasehold improvements - 5 year straight-line Prototypes - 2 year straight-line |
FINANCIAL INSTRUMENTS (Tables)
FINANCIAL INSTRUMENTS (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure of detailed information about financial instruments [abstract] | |
Disclosure of detailed information about credit risk explanatory [Table Text Block] | December 31, 2022 December 31, 2021 Current $ 644,713 $ 341,746 1 - 60 days 537,080 319,346 61 days and over 58,832 27,952 $ 1,240,625 $ 689,044 |
Disclosure of detailed information about foreign currency risk [Table Text Block] | December 31, 2022 December 31, 2021 Cash $ 63,799 $ 1,210,548 Accounts receivable 141,354 116,186 Accounts payable and accrued liabilities (267,124 ) (116,573 ) $ (61,971 ) $ 1,210,161 |
INVENTORY (Tables)
INVENTORY (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Inventory [Abstract] | |
Disclosure of detailed information about inventories [Table Text Block] | December 31, 2022 December 31, 2021 Finished goods $ 132,266 $ 172,865 Raw materials and supplies 4,011,930 5,361,693 $ 4,144,196 $ 5,534,558 |
PROPERTY, PLANT AND EQUIPMENT (
PROPERTY, PLANT AND EQUIPMENT (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
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, 2020 $ 12,558 $ 2,963,983 $ 43,715 $ 992,615 $ 2,497,845 $ 117,004 $ 6,627,720 Additions - - - 63,465 85,156 199,466 348,087 Disposals - - - (31,854 ) - - (31,854 ) Balance, December 31, 2021 $ 12,558 $ 2,963,983 $ 43,715 $ 1,024,226 $ 2,583,001 $ 316,470 $ 6,943,953 Additions - - - 29,191 833,572 - 862,763 Disposals - - - (21,347 ) (77,684 ) - (99,031 ) Balance, December 31, 2022 $ 12,558 $ 2,963,983 $ 43,715 $ 1,032,070 $ 3,338,889 $ 316,470 $ 7,707,685 Accumulated Amortization Balance, December 31, 2020 $ - $ 707,558 $ 38,536 $ 647,290 $ 949,655 $ 86,104 $ 2,429,143 Amortization - 90,257 1,036 76,346 1,027,480 80,766 1,275,885 Disposals - - - (7,469 ) - - (7,469 ) Balance, December 31, 2021 $ - $ 797,815 $ 39,572 $ 716,167 $ 1,977,135 $ 166,870 $ 3,697,559 Amortization - 85,356 4,143 61,364 525,916 66,489 743,268 Disposals - - - (5,942 ) (4,462 ) - (10,404 ) Balance, December 31, 2022 $ - $ 883,171 $ 43,715 $ 771,589 $ 2,498,589 $ 233,359 $ 4,430,423 Carrying Value December 31, 2022 $ 12,558 $ 2,080,812 $ - $ 260,481 $ 840,300 $ 83,111 $ 3,277,262 December 31, 2021 $ 12,558 $ 2,166,168 $ 4,143 $ 308,059 $ 605,866 $ 149,600 $ 3,246,394 |
INTANGIBLE ASSETS (Tables)
INTANGIBLE ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure of detailed information about intangible assets [abstract] | |
Disclosure of detailed information about intangible assets [Table Text Block] | Cost Patent Rights Intellectual Total Balance, December 31, 2020 $ 40,840 $ 672,959 $ - $ 713,799 Additions - - 169,973 169,973 Balance, December 31, 2021 $ 40,840 $ 672,959 $ 169,973 $ 883,772 Additions - - 301,338 301,338 Balance, December 31, 2022 $ 40,840 $ 672,959 $ 471,311 $ 1,185,110 Accumulated Amortization Balance, December 31, 2020 $ 40,840 $ 65,000 $ - $ 105,840 Amortization - 303,980 - 303,980 Balance, December 31, 2021 $ 40,840 $ 368,980 $ - $ 409,820 Amortization - 303,979 - 303,979 Balance, December 31, 2022 $ 40,840 $ 672,959 $ - $ 713,799 Carrying Value December 31, 2022 $ - $ - $ 471,311 $ 471,311 December 31, 2021 $ - $ 303,979 $ 169,973 $ 473,952 |
LEASE LIABILITY (Tables)
LEASE LIABILITY (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Presentation of leases for lessee [abstract] | |
Disclosure of detailed information about lease liability [Table Text Block] | Lease liability Warehouse Vehicles Total Lease liability, as of December 31, 2020 $ 31,418 $ 117,831 $ 149,249 Additions 199,466 43,491 242,957 Lease payments (84,353 ) (31,769 ) (116,122 ) Lease interest 6,757 4,872 11,629 Lease liability, December 31, 2021 $ 153,288 $ 134,425 $ 287,713 Disposals - (40,686 ) (40,686 ) Lease payments (77,835 ) (32,668 ) (110,503 ) Lease interest 6,357 3,836 10,193 Leasing liability recognized as of December 31, 2022 $ 81,810 $ 64,907 $ 146,717 Current portion $ 65,013 $ 47,054 $ 112,067 Long-term portion 16,797 17,853 34,650 $ 81,810 $ 64,907 $ 146,717 |
Disclosure of detailed information about non-current contractual lease obligations [Table Text Block] | Year Amount 2023 $ 128,370 2024 30,806 2025 5,293 $ 164,469 |
DERIVATIVE WARRANT LIABILITY (T
DERIVATIVE WARRANT LIABILITY (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Derivative Warrant Liability [Abstract] | |
Disclosure of detailed information about derivative warrant liability [Table Text Block] | Balance, December 31, 2020 $ - Fair value of warrants issued 925,737 Fair value adjustment (658,626 ) Balance, December 31, 2021 $ 267,111 Fair value adjustment (263,446 ) Balance, December 31, 2022 $ 3,665 |
Disclosure of detailed information about option pricing model to estimate the liability's fair value [Table Text Block] | As of December 31, At Issuance - 2022 2021 March 4, 2021 Risk-free interest rate 4.06% 0.95% 0.28% Expected life 0.17 years 1.17 years 2.00 years Annualized volatility 87.88% 96.32% 81.02% Dividend yield 0.00% 0.00% 0.00% Fair value per warrant $ 0.001 $ 0.079 $ 0.261 |
CAPITAL STOCK (Tables)
CAPITAL STOCK (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure Of Capital Stock Explanatory [Abstract] | |
Disclosure of detailed information about number and weighted average remaining contractual life of outstanding share options [Table Text Block] | Exercise Expiry December 31, Forfeited/ December 31, Price Date 2021 Granted Exercised Expired 2022 $0.90 July 6, 2022 50,000 - - (50,000) - $0.30 November 28, 2022 650,000 - - (650,000) - $0.57 April 17, 2023 200,000 - - - 200,000 $0.50 August 20, 2023 700,000 - - - 700,000 $1.45 May 17, 2024 10,000 - - - 10,000 $0.78 August 19, 2024 700,000 - - - 700,000 $0.82 November 8, 2024 10,000 - - - 10,000 $0.76 February 11, 2025 200,000 - - - 200,000 $0.75 August 18, 2025 750,000 - - - 750,000 Total outstanding 3,270,000 - - (700,000) 2,570,000 Total exercisable 2,953,333 - - (700,000) 2,570,000 Exercise Expiry December 31, Forfeited/ December 31, Price Date 2020 Granted Exercised Expired 2021 $1.30 August 18, 2021 1,175,000 - - (1,175,000) - $0.90 July 6, 2022 50,000 - - - 50,000 $0.30 November 28, 2022 750,000 - (100,000) - 650,000 $0.57 April 17, 2023 200,000 - - - 200,000 $0.50 August 20, 2023 750,000 - (50,000) - 700,000 $1.45 May 17, 2024 10,000 - - - 10,000 $0.78 August 19, 2024 700,000 - - - 700,000 $0.82 November 8, 2024 10,000 - - - 10,000 $0.76 February 11, 2025 200,000 - - - 200,000 $0.75 August 18, 2025 750,000 - - - 750,000 Total outstanding 4,595,000 - (150,000) (1,175,000) 3,270,000 Total exercisable 3,721,667 - (150,000) (1,175,000) 2,953,333 |
Disclosure of detailed information about number and weighted average exercise prices of share options [Table Text Block] | Weighted Average Exercise Number Price Outstanding, December 31, 2020 4,595,000 $ 0.78 Exercised (150,000 ) $ 0.37 Expired (1,175,000 ) $ 1.30 Outstanding, December 31, 2021 3,270,000 $ 0.61 Forfeited (10,000 ) $ 0.30 Expired (690,000 ) $ 0.34 Outstanding and exercisable, December 31, 2022 2,570,000 $ 0.68 |
Disclosure of detailed information about options, valuation assumptions [Table Text Block] | Year ended December 31, 2020 Risk-free interest rate (average) 0.51% Estimated volatility (average) 67.29% Expected life in years 5.00 Expected dividend yield 0.00% Estimated forfeitures 0.00% Grant date fair value per option $ 0.38 |
Disclosure of detailed information about warrants, activity [Table Text Block] | Share Purchase Weighted average warrants exercise price Outstanding, December 31, 2020 - $ - Issued 3,500,005 $ 1.03 (1) Outstanding, December 31, 2021 3,500,005 $ 1.02 (2) Outstanding, December 31, 2022 3,500,005 $ 0.96 (2) |
Disclosure of detailed information about restricted share units [Table Text Block] | Equity settled Outstanding, December 31, 2020 - Granted 355,000 Outstanding, December 31, 2021 355,000 Forfeited (2,500 ) Repurchased (117,500 ) Granted 410,000 Outstanding, December 31, 2022 645,000 |
RELATED PARTY TRANSACTIONS (Tab
RELATED PARTY TRANSACTIONS (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure Of Related Party Transactions [Abstract] | |
Disclosure of detailed information about about key management personnel [Table Text Block] | December 31, December 31, December 31, 2022 2021 2020 Management compensation $ 720,003 $ 720,923 $ 641,845 Management bonus * - - 28,423 Share-based expense ** 105,792 104,250 335,155 Directors' fees 163,000 163,000 163,000 RSU payment ** * 23,000 - - $ 1,011,795 $ 988,173 $ 1,168,423 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Income taxes paid (refund) [abstract] | |
Disclosure of detailed information about deferred taxes [Table Text Block] | December 31, December 31, Deferred income tax assets Non-capital loss carry-forwards $ 309,510 $ 216,826 Intangible Assets 38,740 - Deferred income tax assets $ 348,250 $ 216,826 Excess of carrying value over tax value of property, plant and equipment $ (348,250 ) $ (216,826 ) Deferred income tax liability $ (348,250 ) $ (216,826 ) Net deferred tax asset (liability) $ - $ - |
Disclosure of detailed information about temporary difference, unused tax losses and unused tax credits [Table Text Block] | December 31, 2022 December 31, 2021 Excess of tax value over carrying value of $ 955 $ 1,135 Non-capital losses carried forward 1,725,619 1,411,411 Intangible assets 123,623 49,992 Derivative warrant liability 990 72,120 Lease liability 39,614 77,682 Unrecognized deductible temporary differences $ 1,890,801 $ 1,612,340 |
Disclosure of detailed information about effective income tax expense (recovery) [Table Text Block] | December 31, December 31, December 31, Loss before income taxes $ (1,189,386 ) $ (2,758,567 ) $ (1,307,890 ) Statutory income tax rate 27.00% 27.00% 27.00% Income tax benefit computed at statutory tax rate (321,134 ) (744,813 ) (353,130 ) Items not deductible for income tax purposes 34,640 (107,916 ) 147,116 Under (over) provision of taxes in prior years 4,469 99,873 (84,532 ) Change in timing differences 234,499 91,007 499,718 Impact of foreign exchange on tax assets and liabilities 44,097 4,444 (7,163 ) Unused tax losses and tax offsets not recognized 147,036 813,044 33,082 Income tax expense 143,607 155,639 235,091 Texas margin tax and branch tax 22,424 17,000 13,901 Income tax expense $ 166,031 $ 172,639 $ 248,992 |
SUPPLEMENTAL CASH FLOW INFORM_2
SUPPLEMENTAL CASH FLOW INFORMATION (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
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, 2022 2021 2020 Property, plant and equipment additions in accounts payable and accrued liabilities $ 108,743 $ - $ 28,280 Intangible asset additions in accounts payable and accrued liabilities $ 92,062 $ - $ - Deposit applied to intangible assets $ 60,462 $ - $ - Interest paid $ 10,193 $ 9,054 $ 9,088 Income taxes paid $ 57,611 $ 342,000 $ 229,233 |
SIGNIFICANT CUSTOMERS (Tables)
SIGNIFICANT CUSTOMERS (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure of major customers [abstract] | |
Disclosure of detailed information about operating segments [Table Text Block] | December 31, December 31, December 31, 2022 2021 2020 Customer A $ 5,312,839 $ 2,787,027 $ 5,505,214 Customer B $ 1,837,438 $ 932,248 $ 2,710,540 Customer C $ 1,131,112 $ 1,314,843 $ 1,280,155 |
SIGNIFICANT ACCOUNTING POLICI_4
SIGNIFICANT ACCOUNTING POLICIES (Narrative) (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
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. | |
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||
Research and development costs on intellectual property | $ 471,311 | $ 473,952 |
Intellectual Property [Member] | ||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||
Research and development costs on intellectual property | $ 471,311 | $ 169,973 |
SIGNIFICANT ACCOUNTING POLICI_5
SIGNIFICANT ACCOUNTING POLICIES - Disclosure of detailed information about intangible assets with indefinite useful life (Details) | 12 Months Ended |
Dec. 31, 2022 | |
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 |
Intellectual Property [Member] | |
Disclosure of detailed information about intangible assets [line items] | |
Useful lives or amortisation rates, intangible assets other than goodwill | 7 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, 2022 | |
Building [Member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Depreciation rate, property, plant and equipment | 4% |
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% |
Depreciation method of property, plant and equipment | declining-balance |
Leasehold improvements [Member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Useful life measured as period of time, property, plant and equipment | 5 years |
Depreciation method of property, plant and equipment | straight-line |
Prototype [Member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Useful life measured as period of time, property, plant and equipment | 2 years |
Depreciation method of property, plant and equipment | straight-line |
FINANCIAL INSTRUMENTS (Narrativ
FINANCIAL INSTRUMENTS (Narrative) (Details) - USD ($) | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Disclosure of detailed information about financial instruments [line items] | ||||
Cash | $ 2,712,446 | $ 3,377,464 | $ 1,049,049 | $ 4,418,236 |
Accounts receivable | 1,381,979 | 807,009 | ||
Current liabilities | 1,330,821 | 1,210,356 | ||
Accounts payable and accrued liabilities | 1,184,463 | 1,118,573 | ||
Income tax payable | 30,626 | 0 | ||
Current portion of lease liability | 112,067 | 91,783 | ||
Derivative warrant liability | 3,665 | 0 | ||
Credit risk [Member] | ||||
Disclosure of detailed information about financial instruments [line items] | ||||
Cash | 2,712,446 | 3,377,464 | ||
Accounts receivable | 1,240,625 | 690,823 | ||
Credit risk [Member] | Customer A [Member] | ||||
Disclosure of detailed information about financial instruments [line items] | ||||
Accounts receivable | 224,954 | 93,865 | ||
Credit risk [Member] | Customer B [Member] | ||||
Disclosure of detailed information about financial instruments [line items] | ||||
Accounts receivable | 436,400 | 47,250 | ||
Credit risk [Member] | Customer C [Member] | ||||
Disclosure of detailed information about financial instruments [line items] | ||||
Accounts receivable | 148,270 | 155,520 | ||
Liquidity risk [Member] | ||||
Disclosure of detailed information about financial instruments [line items] | ||||
Cash | 2,712,446 | 3,377,464 | ||
Current liabilities | 1,330,821 | 1,210,356 | ||
Accounts payable and accrued liabilities | 1,184,463 | 1,118,573 | ||
Income tax payable | 30,626 | 0 | ||
Current portion of lease liability | 112,067 | 91,783 | ||
Derivative warrant liability | 3,665 | 0 | ||
Undiscounted contractual lease liabilities | $ 164,469 | $ 307,456 | ||
Currency risk [Member] | ||||
Disclosure of detailed information about financial instruments [line items] | ||||
Sensitivity analysis, confidence interval | 7% | 1% | ||
Value at risk | $ 4,338 | $ 12,102 |
FINANCIAL INSTRUMENTS - Disclo
FINANCIAL INSTRUMENTS - Disclosure of detailed information about Credit risk (Details) - USD ($) | Dec. 31, 2022 | Dec. 31, 2021 |
Disclosure of detailed information about financial instruments [line items] | ||
Accounts receivable, excluding goods and services tax receivable | $ 1,240,625 | $ 689,044 |
Current [Member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Accounts receivable, excluding goods and services tax receivable | 644,713 | 341,746 |
1 - 60 days [Member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Accounts receivable, excluding goods and services tax receivable | 537,080 | 319,346 |
61 days and over [Member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Accounts receivable, excluding goods and services tax receivable | $ 58,832 | $ 27,952 |
FINANCIAL INSTRUMENTS - Disclos
FINANCIAL INSTRUMENTS - Disclosure of detailed information about foreign currency risk (Details) - USD ($) | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Disclosure of detailed information about financial instruments [line items] | ||||
Cash | $ 2,712,446 | $ 3,377,464 | $ 1,049,049 | $ 4,418,236 |
Accounts receivable | 1,381,979 | 807,009 | ||
Accounts payable and accrued liabilities | (1,184,463) | (1,118,573) | ||
Amounts held in CAD [Member] | ||||
Disclosure of detailed information about financial instruments [line items] | ||||
Cash | 63,799 | 1,210,548 | ||
Accounts receivable | 141,354 | 116,186 | ||
Accounts payable and accrued liabilities | (267,124) | (116,573) | ||
Net assets (liabilities) | $ (61,971) | $ 1,210,161 |
INVENTORY (Narrative) (Details)
INVENTORY (Narrative) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Disclosure Of Inventory [Line Items] | |||
Inventory write-off | $ 260,040 | $ 117,403 | $ 114,066 |
Cost of Goods Sold [Member] | |||
Disclosure Of Inventory [Line Items] | |||
Direct material costs recognized as expense | $ 4,695,464 | $ 3,091,973 |
INVENTORY - Disclosure of detai
INVENTORY - Disclosure of detailed information about inventories (Details) - USD ($) | Dec. 31, 2022 | Dec. 31, 2021 |
Inventory [Abstract] | ||
Finished goods | $ 132,266 | $ 172,865 |
Raw materials and supplies | 4,011,930 | 5,361,693 |
Inventory | $ 4,144,196 | $ 5,534,558 |
PROPERTY, PLANT AND EQUIPMENT_2
PROPERTY, PLANT AND EQUIPMENT (Narrative) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Included in inventory [Member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Amortization related to property, plant and equipment | $ 3,025 | $ 6,774 | $ 3,712 |
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 | 118,654 | 131,580 | 134,067 |
Included in amortization expenses [Member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Amortization related to property, plant and equipment | 95,673 | 133,885 | 140,178 |
Included in research expense [Member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Amortization related to property, plant and equipment | $ 525,916 | $ 1,011,445 | $ 624,460 |
PROPERTY, PLANT AND EQUIPMENT -
PROPERTY, PLANT AND EQUIPMENT - Disclosure of detailed information about property, plant and equipment (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Disclosure of detailed information about property, plant and equipment [line items] | ||
Property, plant and equipment at beginning of period | $ 3,246,394 | |
Property, plant and equipment at end of period | 3,277,262 | $ 3,246,394 |
Cost [Member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Property, plant and equipment at beginning of period | 6,943,953 | 6,627,720 |
Additions | 862,763 | 348,087 |
Disposals | (99,031) | (31,854) |
Property, plant and equipment at end of period | 7,707,685 | 6,943,953 |
Accumulated Amortization [Member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Property, plant and equipment at beginning of period | (3,697,559) | (2,429,143) |
Amortization | 743,268 | 1,275,885 |
Disposals | 10,404 | 7,469 |
Property, plant and equipment at end of period | (4,430,423) | (3,697,559) |
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 |
Disposals | 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 |
Disposals | 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 | 2,166,168 | |
Property, plant and equipment at end of period | 2,080,812 | 2,166,168 |
Building [Member] | Cost [Member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Property, plant and equipment at beginning of period | 2,963,983 | 2,963,983 |
Additions | 0 | 0 |
Disposals | 0 | 0 |
Property, plant and equipment at end of period | 2,963,983 | 2,963,983 |
Building [Member] | Accumulated Amortization [Member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Property, plant and equipment at beginning of period | (797,815) | (707,558) |
Amortization | 85,356 | 90,257 |
Disposals | 0 | 0 |
Property, plant and equipment at end of period | (883,171) | (797,815) |
Leasehold Improvements [Member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Property, plant and equipment at beginning of period | 4,143 | |
Property, plant and equipment at end of period | 0 | 4,143 |
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 |
Disposals | 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 | (39,572) | (38,536) |
Amortization | 4,143 | 1,036 |
Disposals | 0 | 0 |
Property, plant and equipment at end of period | (43,715) | (39,572) |
Production Equipment [Member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Property, plant and equipment at beginning of period | 308,059 | |
Property, plant and equipment at end of period | 260,481 | 308,059 |
Production Equipment [Member] | Cost [Member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Property, plant and equipment at beginning of period | 1,024,226 | 992,615 |
Additions | 29,191 | 63,465 |
Disposals | (21,347) | (31,854) |
Property, plant and equipment at end of period | 1,032,070 | 1,024,226 |
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 | (716,167) | (647,290) |
Amortization | 61,364 | 76,346 |
Disposals | 5,942 | 7,469 |
Property, plant and equipment at end of period | (771,589) | (716,167) |
Prototype [Member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Property, plant and equipment at beginning of period | 605,866 | |
Property, plant and equipment at end of period | 840,300 | 605,866 |
Prototype [Member] | Cost [Member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Property, plant and equipment at beginning of period | 2,583,001 | 2,497,845 |
Additions | 833,572 | 85,156 |
Disposals | (77,684) | 0 |
Property, plant and equipment at end of period | 3,338,889 | 2,583,001 |
Prototype [Member] | Accumulated Amortization [Member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Property, plant and equipment at beginning of period | (1,977,135) | (949,655) |
Amortization | 525,916 | 1,027,480 |
Disposals | 4,462 | 0 |
Property, plant and equipment at end of period | (2,498,589) | (1,977,135) |
ROU Asset [Member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Property, plant and equipment at beginning of period | 149,600 | |
Property, plant and equipment at end of period | 83,111 | 149,600 |
ROU Asset [Member] | Cost [Member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Property, plant and equipment at beginning of period | 316,470 | 117,004 |
Additions | 0 | 199,466 |
Disposals | 0 | 0 |
Property, plant and equipment at end of period | 316,470 | 316,470 |
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 | (166,870) | (86,104) |
Amortization | 66,489 | 80,766 |
Disposals | 0 | 0 |
Property, plant and equipment at end of period | $ (233,359) | $ (166,870) |
INTANGIBLE ASSETS (Narrative) (
INTANGIBLE ASSETS (Narrative) (Details) | 1 Months Ended | 12 Months Ended | |||||||
Mar. 03, 2021 USD ($) | Nov. 10, 2016 USD ($) shares | Oct. 25, 2021 CAD ($) | Oct. 25, 2021 USD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | Dec. 31, 2017 USD ($) | Dec. 31, 2010 | |
Disclosure of detailed information about intangible assets [line items] | |||||||||
Sales royalty | 5% | ||||||||
Acquisition costs | $ 217,946 | ||||||||
Payments for intangible assets | $ 25,000 | $ 148,814 | $ 169,973 | $ 0 | |||||
Common shares issued to acquire intangible assets | shares | 250,000 | ||||||||
Common shares issued to acquire intangible assets, value | $ 192,946 | ||||||||
Consulting agreement, fee per month | $ 10,000 | 10,000 | |||||||
Payments for consulting agreement, further consideration | $ 75,000 | ||||||||
Shares issued for consulting agreement, further consideration | shares | 750,000 | ||||||||
Consulting agreement, royalty on net sales | 2.50% | 2.50% | |||||||
Agreement consists total payments | $ 825,000 | $ 650,734 | |||||||
Royalty payment for the license | $ 27,000 | ||||||||
Royalty license fee term | 10 years | 10 years | |||||||
Discount on royalty payment | 50% | 50% | |||||||
Cumulative remaining license fees | $ 50,000 | ||||||||
Deposit | 67,181 | 127,643 | |||||||
Capitalized to intellectual property | $ 301,338 | $ 56,416 | |||||||
Manway securement systems [Member] | |||||||||
Disclosure of detailed information about intangible assets [line items] | |||||||||
Sales royalty | 5% | ||||||||
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 | shares | 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 | shares | 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 | shares | 250,000 |
INTANGIBLE ASSETS - Disclosure
INTANGIBLE ASSETS - Disclosure of detailed information about intangible assets (Details) - USD ($) | 12 Months Ended | ||
Nov. 10, 2016 | Dec. 31, 2022 | Dec. 31, 2021 | |
Disclosure of detailed information about intangible assets [line items] | |||
Intangible assets at beginning of period | $ 473,952 | ||
Additions | $ 217,946 | ||
Intangible assets at end of period | 471,311 | $ 473,952 | |
Cost [Member] | |||
Disclosure of detailed information about intangible assets [line items] | |||
Intangible assets at beginning of period | 883,772 | 713,799 | |
Additions | 301,338 | 169,973 | |
Intangible assets at end of period | 1,185,110 | 883,772 | |
Accumulated Amortization [Member] | |||
Disclosure of detailed information about intangible assets [line items] | |||
Intangible assets at beginning of period | (409,820) | (105,840) | |
Amortization | 303,979 | 303,980 | |
Intangible assets at end of period | (713,799) | (409,820) | |
Patent [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 | |
Patent [Member] | Cost [Member] | |||
Disclosure of detailed information about intangible assets [line items] | |||
Intangible assets at beginning of period | 40,840 | 40,840 | |
Additions | 0 | 0 | |
Intangible assets at end of period | 40,840 | 40,840 | |
Patent [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 | 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 | 303,979 | ||
Intangible assets at end of period | 0 | 303,979 | |
Rights [Member] | Cost [Member] | |||
Disclosure of detailed information about intangible assets [line items] | |||
Intangible assets at beginning of period | 672,959 | 672,959 | |
Additions | 0 | 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 | (368,980) | (65,000) | |
Amortization | 303,979 | 303,980 | |
Intangible assets at end of period | (672,959) | (368,980) | |
Intellectual Property [Member] | |||
Disclosure of detailed information about intangible assets [line items] | |||
Intangible assets at beginning of period | 169,973 | ||
Intangible assets at end of period | 471,311 | 169,973 | |
Intellectual Property [Member] | Cost [Member] | |||
Disclosure of detailed information about intangible assets [line items] | |||
Intangible assets at beginning of period | 169,973 | 0 | |
Additions | 301,338 | 169,973 | |
Intangible assets at end of period | 471,311 | 169,973 | |
Intellectual Property [Member] | Accumulated Amortization [Member] | |||
Disclosure of detailed information about intangible assets [line items] | |||
Intangible assets at beginning of period | 0 | 0 | |
Amortization | 0 | 0 | |
Intangible assets at end of period | $ 0 | $ 0 |
LEASE LIABILITY - Disclosure of
LEASE LIABILITY - Disclosure of detailed information about lease liability (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Disclosure Of Quantitative Information About Lease Liability [Line Items] | ||
Lease liability, beginning of year | $ 287,713 | $ 149,249 |
Additions | 242,957 | |
Lease payments | (110,503) | (116,122) |
Disposals | (40,686) | |
Lease interest | 10,193 | 11,629 |
Lease liability, end of year | 146,717 | 287,713 |
Current portion | 112,067 | 91,783 |
Long-term portion | 34,650 | 195,930 |
Warehouse [Member] | ||
Disclosure Of Quantitative Information About Lease Liability [Line Items] | ||
Lease liability, beginning of year | 153,288 | 31,418 |
Additions | 199,466 | |
Lease payments | (77,835) | (84,353) |
Disposals | 0 | |
Lease interest | 6,357 | 6,757 |
Lease liability, end of year | 81,810 | 153,288 |
Current portion | 65,013 | |
Long-term portion | 16,797 | |
Vehicles [Member] | ||
Disclosure Of Quantitative Information About Lease Liability [Line Items] | ||
Lease liability, beginning of year | 134,425 | 117,831 |
Additions | 43,491 | |
Lease payments | (32,668) | (31,769) |
Disposals | (40,686) | |
Lease interest | 3,836 | 4,872 |
Lease liability, end of year | 64,907 | $ 134,425 |
Current portion | 47,054 | |
Long-term portion | $ 17,853 |
LEASE LIABILITY - Disclosure _2
LEASE LIABILITY - Disclosure of detailed information about non-current contractual lease obligations (Details) | Dec. 31, 2022 USD ($) |
Disclosure of maturity analysis of operating lease payments [line items] | |
Non-current contractual lease obligations | $ 164,469 |
2023 [Member] | |
Disclosure of maturity analysis of operating lease payments [line items] | |
Non-current contractual lease obligations | 128,370 |
2024 [Member] | |
Disclosure of maturity analysis of operating lease payments [line items] | |
Non-current contractual lease obligations | 30,806 |
2025 [Member] | |
Disclosure of maturity analysis of operating lease payments [line items] | |
Non-current contractual lease obligations | $ 5,293 |
DERIVATIVE WARRANT LIABILITY (N
DERIVATIVE WARRANT LIABILITY (Narrative) (Details) - USD ($) | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Derivative Warrant Liability [Abstract] | |||
Derivative warrant liability | $ 3,665 | $ 267,111 | $ 0 |
DERIVATIVE WARRANT LIABILITY -
DERIVATIVE WARRANT LIABILITY - Disclosure of detailed information about derivative warrant liability (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Derivative Warrant Liability [Abstract] | ||
Balance, Beginning | $ 267,111 | $ 0 |
Fair value of warrants issued | 925,737 | |
Fair value adjustment | (263,446) | (658,626) |
Balance, Ending | $ 3,665 | $ 267,111 |
DERIVATIVE WARRANT LIABILITY _2
DERIVATIVE WARRANT LIABILITY - Disclosure of detailed information about weighted average assumptions (Details) | 12 Months Ended | |||
Mar. 04, 2021 Year $ / shares | Dec. 31, 2022 Year $ / shares | Dec. 31, 2021 Year $ / shares | Dec. 31, 2020 Year | |
Disclosure of detailed information about financial instruments [line items] | ||||
Risk-free interest rate | 0.51% | |||
Expected life | 5 | |||
Annualized volatility | 67.29% | |||
Dividend yield | 0% | |||
Derivative warrant liability [Member] | ||||
Disclosure of detailed information about financial instruments [line items] | ||||
Risk-free interest rate | 0.28% | 4.06% | 0.95% | |
Expected life | 2 | 0.17 | 1.17 | |
Annualized volatility | 81.02% | 87.88% | 96.32% | |
Dividend yield | 0% | 0% | 0% | |
Fair value per warrant | $ / shares | $ 0.261 | $ 0.001 | $ 0.079 |
CAPITAL STOCK (Narrative) (Deta
CAPITAL STOCK (Narrative) (Details) | 1 Months Ended | 12 Months Ended | ||||||
Nov. 10, 2016 USD ($) shares | Oct. 27, 2022 $ / shares | Oct. 27, 2022 USD ($) Share | Dec. 31, 2022 CAD ($) CAD_Per_USD Share $ / shares shares | Dec. 31, 2022 USD ($) CAD_Per_USD Share shares | Dec. 31, 2021 USD ($) CAD_Per_USD shares | Dec. 31, 2020 USD ($) shares | Mar. 04, 2021 CAD_Per_USD | |
Fair value of warrants issued | $ 925,737 | |||||||
Issuance costs related to private placement | $ 0 | 77,051 | $ 0 | |||||
Exercise of options | 55,000 | |||||||
Proceeds from exercise of options | 0 | 55,000 | 0 | |||||
Common shares issued to acquire intangible assets | shares | 250,000 | |||||||
Common shares issued to acquire intangible assets, value | $ 192,946 | |||||||
Share-based expense | $ 163,051 | $ 133,645 | 423,538 | |||||
Closing foreign exchange rate | CAD_Per_USD | 1.3544 | 1.3544 | 1.2678 | 1.2637 | ||||
Repurchase of RSUs | $ (35,269) | $ 0 | 0 | |||||
Gain on repurchase of RSUs | (45,806) | 0 | $ 0 | |||||
Restricted share units [Member] | ||||||||
Weighted average share price | $ / shares | $ 0.3 | |||||||
Share-based expense | $ 155,318 | 24,949 | ||||||
Description of RSU Plan | The maximum number of common shares made available for issuance pursuant to the RSU Plan shall not exceed 5% of common shares issued and outstanding and shall not exceed 10% of the common shares issued and outstanding less any common shares reserved for issuance under all other share compensation arrangements. | The maximum number of common shares made available for issuance pursuant to the RSU Plan shall not exceed 5% of common shares issued and outstanding and shall not exceed 10% of the common shares issued and outstanding less any common shares reserved for issuance under all other share compensation arrangements. | ||||||
Fair value of unit granted | $ 410,000 | 355,000 | ||||||
Description of unit vesting period | vesting period, with 33% vesting one year after grant and 33% every year thereafter. | vesting period, with 33% vesting one year after grant and 33% every year thereafter. | ||||||
Estimated Fair Value | $ 81,025 | $ 123,000 | $ 244,950 | |||||
Repurchased | Share | (117,500) | (117,500) | (117,500) | |||||
Repurchase of RSUs | $ (35,269) | |||||||
Gain on repurchase of RSUs | $ (45,806) | |||||||
Deferred Share Units [Member] | ||||||||
Description of DSU Plan | Pursuant to the DSU Plan, non-employee directors may elect to receive deferred share units ("DSUs") in lieu of a cash payment of up to 50% of their annual base compensation determined by the Board. The maximum number of common shares made available for issuance pursuant to the DSU Plan shall not exceed 2% of the common shares issued and outstanding and shall not exceed 10% of the common shares issued and outstanding less any common shares reserved for issuance under all other share compensation agreements. | Pursuant to the DSU Plan, non-employee directors may elect to receive deferred share units ("DSUs") in lieu of a cash payment of up to 50% of their annual base compensation determined by the Board. The maximum number of common shares made available for issuance pursuant to the DSU Plan shall not exceed 2% of the common shares issued and outstanding and shall not exceed 10% of the common shares issued and outstanding less any common shares reserved for issuance under all other share compensation agreements. | ||||||
Private Placements [Member] | ||||||||
Number of units issued in private placement | shares | 7,000,000 | 7,000,000 | ||||||
Equity issuance price per unit | $ / shares | $ 0.91 | |||||||
Gross proceeds of units issued in private placement | $ 6,370,000 | $ 4,922,510 | ||||||
Description of each unit consists | Each unit consists of one common share and one-half share purchase warrant expiring two years from the date of issue. Each whole warrant entitles the holder thereof to acquire one common share at a price of $1.15 CAD in year one and $1.30 CAD in year two | Each unit consists of one common share and one-half share purchase warrant expiring two years from the date of issue. Each whole warrant entitles the holder thereof to acquire one common share at a price of $1.15 CAD in year one and $1.30 CAD in year two | ||||||
Fair value of warrants issued | $ 925,737 | |||||||
Gross proceeds of units issued in private placement subtracting value of derivative warrant liability | 3,996,773 | |||||||
Issuance costs related to private placement | 409,712 | |||||||
Unit issue related cost | $ 77,051 | |||||||
Year One [Member] | Private Placements [Member] | ||||||||
Weighted average share price | $ / shares | $ 1.15 | |||||||
Year Two [Member] | Private Placements [Member] | ||||||||
Weighted average share price | $ / shares | $ 1.3 | |||||||
Class A, convertible, voting, preferred shares [Member] | ||||||||
Number of shares authorised | shares | 5,000,000 | 5,000,000 | ||||||
Capital Stock [Member] | ||||||||
Exercise of options (Shares) | shares | 150,000 | 150,000 | ||||||
Exercise of options | $ 92,385 | |||||||
Proceeds from exercise of options | $ 55,000 | |||||||
Reserves [Member] | ||||||||
Exercise of options | (37,385) | |||||||
Share-based expense | $ 163,051 | $ 133,645 | 423,538 | |||||
Stock Options [Member] | ||||||||
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 | 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 | 1 year 7 months 2 days | 1 year 7 months 2 days | 2 years 2 months 19 days | |||||
Share-based expense | $ 7,733 | $ 108,696 | $ 423,538 | |||||
Warrants [Member] | ||||||||
Warrants remaining maturity | 2 months 1 day | 2 months 1 day |
CAPITAL STOCK - Disclosure of d
CAPITAL STOCK - Disclosure of detailed information about number and weighted average remaining contractual life of outstanding share options (Details) | 12 Months Ended | |
Dec. 31, 2022 Share $ / shares shares | Dec. 31, 2021 Share $ / shares shares | |
Disclosure of range of exercise prices of outstanding share options [line items] | ||
Number, beginning of period | 3,270,000 | 4,595,000 |
Granted | 0 | 0 |
Exercised | 0 | (150,000) |
Expired | (700,000) | (1,175,000) |
Number, end of period | 2,570,000 | 3,270,000 |
Total exercisable, beginning of period | 2,953,333 | 3,721,667 |
Total exercisable Granted | shares | 0 | 0 |
Total exercisable Exercised | shares | 0 | (150,000) |
Total exercisable Expired | shares | (700,000) | (1,175,000) |
Total exercisable, end of period | 2,570,000 | 2,953,333 |
Expire August 18, 2021 [Member] | ||
Disclosure of range of exercise prices of outstanding share options [line items] | ||
Exercise Price | $ / shares | $ 1.3 | |
Number, beginning of period | 0 | 1,175,000 |
Granted | 0 | |
Exercised | 0 | |
Expired | (1,175,000) | |
Number, end of period | 0 | |
Expire July 6, 2022 [Member] | ||
Disclosure of range of exercise prices of outstanding share options [line items] | ||
Exercise Price | $ / shares | $ 0.9 | $ 0.9 |
Number, beginning of period | 50,000 | 50,000 |
Granted | 0 | 0 |
Exercised | 0 | 0 |
Expired | (50,000) | 0 |
Number, end of period | 0 | 50,000 |
Expire November 28, 2022 [Member] | ||
Disclosure of range of exercise prices of outstanding share options [line items] | ||
Exercise Price | $ / shares | $ 0.3 | $ 0.3 |
Number, beginning of period | 650,000 | 750,000 |
Granted | 0 | 0 |
Exercised | 0 | (100,000) |
Expired | (650,000) | 0 |
Number, end of period | 0 | 650,000 |
Expire April 17, 2023 [Member] | ||
Disclosure of range of exercise prices of outstanding share options [line items] | ||
Exercise Price | $ / shares | $ 0.57 | $ 0.57 |
Number, beginning of period | 200,000 | 200,000 |
Granted | 0 | 0 |
Exercised | 0 | 0 |
Expired | 0 | 0 |
Number, end of period | 200,000 | 200,000 |
Expire August 20, 2023 [Member] | ||
Disclosure of range of exercise prices of outstanding share options [line items] | ||
Exercise Price | $ / shares | $ 0.5 | $ 0.5 |
Number, beginning of period | 700,000 | 750,000 |
Granted | 0 | 0 |
Exercised | 0 | (50,000) |
Expired | 0 | 0 |
Number, end of period | 700,000 | 700,000 |
Expire May 17, 2024 [Member] | ||
Disclosure of range of exercise prices of outstanding share options [line items] | ||
Exercise Price | $ / shares | $ 1.45 | $ 1.45 |
Number, beginning of period | 10,000 | 10,000 |
Granted | 0 | 0 |
Exercised | 0 | 0 |
Expired | 0 | 0 |
Number, 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 |
Number, beginning of period | 700,000 | 700,000 |
Granted | 0 | 0 |
Exercised | 0 | 0 |
Expired | 0 | 0 |
Number, 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 |
Number, beginning of period | 10,000 | 10,000 |
Granted | 0 | 0 |
Exercised | 0 | 0 |
Expired | 0 | 0 |
Number, 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 | $ 0.76 |
Number, beginning of period | 200,000 | 200,000 |
Granted | 0 | 0 |
Exercised | 0 | 0 |
Expired | 0 | 0 |
Number, end of period | 200,000 | 200,000 |
Expire August 18, 2025 [Member] | ||
Disclosure of range of exercise prices of outstanding share options [line items] | ||
Exercise Price | $ / shares | $ 0.75 | $ 0.75 |
Number, beginning of period | 750,000 | 750,000 |
Granted | 0 | 0 |
Exercised | 0 | 0 |
Expired | 0 | 0 |
Number, end of period | 750,000 | 750,000 |
CAPITAL STOCK - Disclosure of_2
CAPITAL STOCK - Disclosure of detailed information about number and weighted average exercise prices of share options (Details) | 12 Months Ended | |
Dec. 31, 2022 Share $ / shares | Dec. 31, 2021 Share $ / shares | |
Disclosure Of Capital Stock Explanatory [Abstract] | ||
Number, beginning of period | Share | 3,270,000 | 4,595,000 |
Weighted Average Exercise Price, beginning of period | $ / shares | $ 0.61 | $ 0.78 |
Exercised | Share | 0 | (150,000) |
Weighted Average Exercise Price, Exercised | $ / shares | $ 0.37 | |
Forfeited | Share | (10,000) | |
Weighted Average Exercise Price, Forfeited | $ / shares | $ 0.3 | |
Expired | Share | (700,000) | (1,175,000) |
Weighted Average Exercise Price, Expired | $ / shares | $ 0.34 | $ 1.3 |
Number, end of period | Share | 2,570,000 | 3,270,000 |
Weighted Average Exercise Price, end of period | $ / shares | $ 0.68 | $ 0.61 |
CAPITAL STOCK - Disclosure of_3
CAPITAL STOCK - Disclosure of detailed information about options, valuation assumptions (Details) | 12 Months Ended |
Dec. 31, 2020 USD ($) Year | |
Disclosure Of Capital Stock Explanatory [Abstract] | |
Risk-free interest rate (average) | 0.51% |
Estimated volatility (average) | 67.29% |
Expected life in years | Year | 5 |
Expected dividend yield | 0% |
Estimated forfeitures | 0% |
Grant date fair value per option | $ | $ 0.38 |
CAPITAL STOCK - Disclosure of_4
CAPITAL STOCK - Disclosure of detailed information about summary of warrants outstanding (Details) | 12 Months Ended | |
Dec. 31, 2022 Share $ / shares | Dec. 31, 2021 Share $ / shares | |
Share purchase warrants | ||
Outstanding, beginning of period | Share | 3,500,005 | 0 |
Issued | Share | 3,500,005 | |
Outstanding, end of period | Share | 3,500,005 | 3,500,005 |
Weighted average exercise price | ||
Weighted average exercise price, beginning of period | $ / shares | $ 1.02 | $ 0 |
Weighted average exercise price, Issued | $ / shares | 1.03 | |
Weighted average exercise price, end of period | $ / shares | $ 0.96 | $ 1.02 |
CAPITAL STOCK - Disclosure of_5
CAPITAL STOCK - Disclosure of detailed information about summary of RSUs (Details) - Share | 1 Months Ended | 12 Months Ended | |
Oct. 27, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | |
Outstanding, beginning of period | 3,500,005 | 0 | |
Granted | 3,500,005 | ||
Outstanding, end of period | 3,500,005 | 3,500,005 | |
Restricted Stocks [Member] | |||
Outstanding, beginning of period | 355,000 | 0 | |
Forfeited | (2,500) | ||
Repurchased | (117,500) | (117,500) | |
Granted | 410,000 | 355,000 | |
Outstanding, end of period | 645,000 | 355,000 |
RELATED PARTY TRANSACTIONS (Nar
RELATED PARTY TRANSACTIONS (Narrative) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
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. | ||
Professional fees expense | $ 518,543 | $ 271,613 | $ 312,213 |
Spouse Of Chief Executive Officer [Member] | |||
Related Party [Line Items] | |||
Professional fees expense | 60,000 | 60,000 | $ 55,000 |
Directors' fees [Member] | |||
Related Party [Line Items] | |||
Amounts payable, related party transactions | |||
Management bonus [Member] | |||
Related Party [Line Items] | |||
Amounts payable, related party transactions |
RELATED PARTY TRANSACTIONS - Di
RELATED PARTY TRANSACTIONS - Disclosure of detailed information about key management personnel (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Disclosure Of Related Party Transactions [Abstract] | |||
Management compensation | $ 720,003 | $ 720,923 | $ 641,845 |
Management bonus | 0 | 0 | 28,423 |
Share-based expense | 105,792 | 104,250 | 335,155 |
Directors' fees | 163,000 | 163,000 | 163,000 |
RSU payment | 23,000 | 0 | 0 |
Total remuneration | $ 1,011,795 | $ 988,173 | $ 1,168,423 |
INCOME TAXES (Narrative) (Detai
INCOME TAXES (Narrative) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income taxes paid (refund) [abstract] | |||
Non-capital losses in the US that may be applied against future taxable income | $ 0 | ||
Statutory income tax rate | 27% | 27% | 27% |
INCOME TAXES - Disclosure of de
INCOME TAXES - Disclosure of detailed information about deferred taxes (Details) - USD ($) | Dec. 31, 2022 | Dec. 31, 2021 |
Deferred Income Tax Assets And Liabilities [Line Items] | ||
Non-capital loss carry-forwards | $ 309,510 | $ 216,826 |
Intangible Assets | 38,740 | 0 |
Deferred income tax assets | 348,250 | 216,826 |
Deferred income tax liability | (348,250) | (216,826) |
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 | $ (348,250) | $ (216,826) |
INCOME TAXES - Disclosure of _2
INCOME TAXES - Disclosure of detailed information about temporary difference, unused tax losses and unused tax credits (Details) - USD ($) | Dec. 31, 2022 | Dec. 31, 2021 |
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Unrecognized deductible temporary differences | $ 1,890,801 | $ 1,612,340 |
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 | 955 | 1,135 |
Non-capital losses carried forward [Member] | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Unrecognized deductible temporary differences | 1,725,619 | 1,411,411 |
Intangible assets [Member] | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Unrecognized deductible temporary differences | 123,623 | 49,992 |
Derivative warrant liability [Member] | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Unrecognized deductible temporary differences | 990 | 72,120 |
Lease liability [Member] | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Unrecognized deductible temporary differences | $ 39,614 | $ 77,682 |
INCOME TAXES - Disclosure of _3
INCOME TAXES - Disclosure of detailed information about effective income tax expense (recovery) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income taxes paid (refund) [abstract] | |||
Loss before income taxes | $ (1,189,386) | $ (2,758,567) | $ (1,307,890) |
Statutory income tax rate | 27% | 27% | 27% |
Income tax benefit computed at statutory tax rate | $ (321,134) | $ (744,813) | $ (353,130) |
Items not deductible for income tax purposes | 34,640 | (107,916) | 147,116 |
Under (over) provision of taxes in prior years | 4,469 | 99,873 | (84,532) |
Change in timing differences | 234,499 | 91,007 | 499,718 |
Impact of foreign exchange on tax assets and liabilities | 44,097 | 4,444 | (7,163) |
Unused tax losses and tax offsets not recognized | 147,036 | 813,044 | 33,082 |
Income tax expense | 143,607 | 155,639 | 235,091 |
Texas margin tax and branch tax | 22,424 | 17,000 | 13,901 |
Income tax expense | $ 166,031 | $ 172,639 | $ 248,992 |
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, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Disclosure Of Supplemental Cash Flow Information [Abstract] | |||
Property, plant and equipment additions in accounts payable and accrued liabilities | $ 108,743 | $ 0 | $ 28,280 |
Intangible asset additions in accounts payable and accrued liabilities | 92,062 | 0 | 0 |
Deposit applied to intangible assets | 60,462 | 0 | 0 |
Interest paid | 10,193 | 9,054 | 9,088 |
Income taxes paid | $ 57,611 | $ 342,000 | $ 229,233 |
SIGNIFICANT CUSTOMERS (Narrativ
SIGNIFICANT CUSTOMERS (Narrative) (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Disclosure of major customers [abstract] | ||
Sales royalty | 5% | |
Revenue from manway securement systems | $ 350,035 | $ 11,000 |
SIGNIFICANT CUSTOMERS - Disclos
SIGNIFICANT CUSTOMERS - Disclosure of detailed information about operating segments (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Disclosure of major customers [line items] | |||
Revenues | $ 10,931,188 | $ 7,425,707 | $ 11,149,130 |
Customer A [Member] | |||
Disclosure of major customers [line items] | |||
Revenues | 5,312,839 | 2,787,027 | 5,505,214 |
Customer B [Member] | |||
Disclosure of major customers [line items] | |||
Revenues | 1,837,438 | 932,248 | 2,710,540 |
Customer C [Member] | |||
Disclosure of major customers [line items] | |||
Revenues | $ 1,131,112 | $ 1,314,843 | $ 1,280,155 |
EMPLOYEE BENEFITS (Narrative) (
EMPLOYEE BENEFITS (Narrative) (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Disclosure of information about defined benefit plans [abstract] | ||
Employee benefits expenses | $ 3,570,149 | $ 3,627,056 |
SEGMENTED INFORMATION (Narrativ
SEGMENTED INFORMATION (Narrative) (Details) - USD ($) | Dec. 31, 2022 | Dec. 31, 2021 |
Canada [Member] | ||
Disclosure of operating segments [line items] | ||
Long-term assets | $ 1,506,666 | $ 1,250,676 |
United States [Member] | ||
Disclosure of operating segments [line items] | ||
Long-term assets | $ 2,309,088 | $ 2,597,313 |