Document And Entity Information
Document And Entity Information | 9 Months Ended |
Sep. 30, 2018 | |
Document Information [Line Items] | |
Entity Registrant Name | LINGO MEDIA CORP |
Entity Central Index Key | 1,177,167 |
Trading Symbol | lmdc |
Current Fiscal Year End Date | --12-31 |
Entity Current Reporting Status | Yes |
Document Type | 6-K |
Document Period End Date | Sep. 30, 2018 |
Document Fiscal Year Focus | 2,018 |
Document Fiscal Period Focus | Q3 |
Amendment Flag | false |
Condensed Consolidated Interim
Condensed Consolidated Interim Balance Sheets (Current Period Unaudited) - CAD ($) | Sep. 30, 2018 | Dec. 31, 2017 | |
Current Assets | |||
Cash and cash equivalents | $ 118,689 | $ 327,434 | |
Accounts and grants receivable | 1,117,294 | 970,467 | |
Prepaid and other receivables | 116,904 | 205,482 | |
1,352,887 | 1,503,383 | ||
Non-Current Assets | |||
Property and equipment | 31,994 | 30,689 | |
Intangibles | |||
TOTAL ASSETS | 1,384,881 | 1,534,072 | |
Current Liabilities | |||
Accounts payable | 604,181 | 488,636 | |
Accrued liabilities | 143,546 | 155,156 | |
Lease inducement | 27,875 | 36,526 | |
Loans payable | [1] | 195,000 | 300,000 |
TOTAL LIABILITIES | 970,602 | 980,318 | |
Equity | |||
Share capital | 21,914,722 | 21,914,722 | |
Share-based payment reserve | 3,880,217 | 3,792,678 | |
Accumulated other comprehensive income | (307,026) | (303,447) | |
Deficit | (25,073,634) | (24,850,199) | |
TOTAL EQUITY | 414,279 | 553,754 | |
TOTAL EQUITY AND LIABILITIES | $ 1,384,881 | $ 1,534,072 | |
[1] | The Company received an unsecured short-term loan during the period. Included in loans payable are loans amounting to $90,000 (2017 - $Nil) from related parties as disclosed in Note 17. |
Condensed Consolidated Interi_2
Condensed Consolidated Interim Statements of Comprehensive Income (Loss) (Unaudited) - CAD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Statement Line Items [Line Items] | ||||
Revenue | $ 186,518 | $ 354,914 | $ 1,227,032 | $ 2,021,806 |
Expenses | ||||
Selling, general and administrative expenses | 303,739 | 290,963 | 928,363 | 881,020 |
Amortization – intangibles | 370,993 | 972,667 | ||
Bad debt (recovery) | (150,340) | (293,379) | ||
Direct costs | 73,979 | 42,124 | 167,185 | 153,841 |
Development costs | 69,864 | 407,300 | ||
Share-based payment | 14,468 | 34,839 | 87,539 | 65,560 |
Depreciation – property and equipment | 1,544 | 1,916 | 4,761 | 4,725 |
Total Expenses | 313,254 | 740,835 | 1,301,769 | 2,077,813 |
Profit / (Loss) from Operations | (126,736) | (385,921) | (74,737) | (56,007) |
Net Finance Charges | ||||
Interest expense | 4,108 | 9,687 | 43,032 | 31,524 |
Foreign exchange (gain) / loss | 14,968 | 77,418 | (48,988) | 195,572 |
Profit / (Loss) before Tax | (145,812) | (473,026) | (68,781) | (283,103) |
Income and Other Tax Expense | 10,738 | 1,787 | 154,654 | 144,643 |
Net Profit / (Loss) for the Period | (156,550) | (474,813) | (223,435) | (427,746) |
Other Comprehensive Income | ||||
Exchange differences on translating foreign operations gain / (loss) | (4,215) | (819) | (3,579) | (1,767) |
Total Comprehensive Income / (Loss), Net of Tax | $ (160,765) | $ (475,632) | $ (227,014) | $ (429,513) |
Earnings /(Loss) per Share | ||||
Basic (in CAD per share) | $ 0 | $ (0.01) | $ (0.01) | $ (0.01) |
Diluted (in CAD per share) | $ 0 | $ (0.01) | $ (0.01) | $ (0.01) |
Weighted Average Number of Common Shares Outstanding | ||||
Basic (in shares) | 35,529,132 | 35,529,132 | 35,529,132 | 35,529,132 |
Diluted (in shares) | 35,529,132 | 35,529,132 | 35,529,132 | 35,529,132 |
Condensed Consolidated Interi_3
Condensed Consolidated Interim Statements of Changes in Equity (Unaudited) - CAD ($) | Issued capital [member] | Reserve of share-based payments [member] | Amount recognised in other comprehensive income and accumulated in equity relating to non-current assets or disposal groups held for sale [member] | Retained earnings [member] | Total |
Balance (in shares) at Dec. 31, 2016 | 35,529,192 | ||||
Balance at Dec. 31, 2016 | $ 21,914,722 | $ 3,421,165 | $ (302,037) | $ (18,588,817) | $ 6,445,033 |
Statement Line Items [Line Items] | |||||
Income / (Loss) for the period | (427,746) | (427,746) | |||
Other comprehensive income (loss) | (1,767) | (1,767) | |||
Share based payments charged to operations | 65,560 | 65,560 | |||
Balance at Sep. 30, 2017 | $ 21,914,722 | 3,486,725 | (303,804) | (19,016,563) | 6,081,080 |
Balance (in shares) at Sep. 30, 2017 | 35,529,192 | ||||
Statement Line Items [Line Items] | |||||
Income / (Loss) for the period | (5,833,636) | (5,833,636) | |||
Other comprehensive income (loss) | 357 | 357 | |||
Share based payments charged to operations | 305,953 | 305,953 | |||
Balance at Dec. 31, 2017 | $ 21,914,722 | 3,792,678 | (303,447) | (24,850,199) | 553,754 |
Balance (in shares) at Dec. 31, 2017 | 35,529,192 | ||||
Statement Line Items [Line Items] | |||||
Income / (Loss) for the period | (223,435) | (223,435) | |||
Other comprehensive income (loss) | (3,579) | (3,579) | |||
Share based payments charged to operations | 87,539 | 87,539 | |||
Balance at Sep. 30, 2018 | $ 21,914,722 | $ 3,880,217 | $ (307,026) | $ (25,073,634) | $ 414,279 |
Balance (in shares) at Sep. 30, 2018 | 35,529,192 |
Condensed Consolidated Interi_4
Condensed Consolidated Interim Statements of Changes in Equity (Unaudited) (Parentheticals) shares in Thousands | Sep. 30, 2018shares |
Preference shares [member] | |
Statement Line Items [Line Items] | |
Preference shares issued (in shares) | 0 |
Condensed Consolidated Interi_5
Condensed Consolidated Interim Statements of Cash Flows (Unaudited) - CAD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||||
Income / (Loss) for the period | $ (156,550) | $ (474,813) | $ (223,435) | $ (427,746) |
Adjustments to Net Profit for Non-Cash Items: | ||||
Depreciation / amortization – intangibles | 370,993 | 972,667 | ||
Share-based payment | 14,468 | 34,839 | 87,539 | 65,560 |
Unrealized foreign exchange (gain)/loss | 1,570 | 15,184 | (3,606) | (1,680) |
Depreciation – property and equipment | 1,544 | 1,916 | 4,761 | 4,725 |
Lease inducement | (8,651) | (18,872) | (8,651) | (18,872) |
Operating Income/(Loss) before Working Capital Changes | (147,619) | (70,753) | (143,392) | 594,654 |
Working Capital Adjustments: | ||||
(Increase)/decrease in accounts and grants receivable | (43,451) | 139,525 | (146,827) | 880,627 |
(Increase)/decrease in prepaid and other receivables | (32,336) | (4,076) | 88,578 | 427,011 |
Increase/(decrease) in accounts payable | 55,731 | 108,513 | 115,545 | 96,777 |
Increase/(decrease) in accrued liabilities | 52,640 | 27,580 | (11,610) | (66,072) |
Cash Generated from/(used in) Operations | (115,035) | 200,789 | (97,706) | 1,932,997 |
CASH FLOWS FROM INVESTING ACTIVITIES | ||||
Investment in intangibles | (149,581) | 0 | (1,740,001) | |
Net liability assumed through acquisition | (80,819) | (80,819) | ||
Purchase of property and equipment | (6,039) | (9,247) | (6,039) | (9,923) |
Net Cash Flows Generated from / (used in) Investing Activities | (6,039) | (239,647) | (6,039) | (1,830,743) |
CASH FLOWS FROM FINANCING ACTIVITIES | ||||
Proceeds from loans | 300,000 | 420,000 | 985,000 | |
Repayment of loans payable | (300,000) | (525,000) | (1,135,000) | |
Net Cash Flows Generated from/(used in) Financing Activities | (105,000) | (150,000) | ||
NET INCREASE / (DECREASE) IN CASH AND CASH EQUIVALENTS | (121,074) | (38,858) | (208,745) | (47,746) |
Cash and Cash Equivalents at the Beginning of the Period | 239,763 | 75,415 | 327,434 | 84,303 |
Cash and Cash Equivalents at the End of the Period | $ 118,689 | $ 36,557 | $ 118,689 | $ 36,557 |
Note 1 - Corporate Information
Note 1 - Corporate Information | 9 Months Ended |
Sep. 30, 2018 | |
Statement Line Items [Line Items] | |
Disclosure of basis of consolidation [text block] | 1. CORPORATE INFORMATION Lingo Media Corporation (“Lingo Media” or the “Company”) is a publicly listed company incorporated in Canada with limited liability under the legislation of the Province of Ontario and its shares are listed on the TSX Venture Exchange and quoted on the OTC Marketplace. The consolidated financial statements of the Company as at and for the period ended September 30, 2018 Speak2Me Lingo Media is a global provider of best-in-class digital and print-based English language learning solutions that is ‘ Changing the way the world learns English two The head office, principal address and registered and records office of the Company is located at 151 703, M5S 1S4. |
Note 2 - Basis of Preparation
Note 2 - Basis of Preparation | 9 Months Ended |
Sep. 30, 2018 | |
Statement Line Items [Line Items] | |
Disclosure of basis of preparation of financial statements [text block] | 2. BASIS OF PREPARATION 2.1 Statement of compliance These condensed consolidated interim financial statements are unaudited and have been prepared in accordance with IAS 34 34” These condensed consolidated interim financial statements have been prepared on a going concern basis, which contemplates the realization of assets and settlement of liabilities in the normal course of business. The Company has incurred significant losses recurring over the years. This raises the doubt about the Company’s ability to continue as a going concern. The ability of the Company to continue as a going concern is dependent upon raising additional financing through share issuance or debt borrowing or through cash flow generated from sales contracts and distribution agreements. There are no The condensed consolidated interim financial statements for the period ended September 30, 2018 November 29, 2018. 2.2 Basis of measurement These condensed consolidated interim financial statements have been prepared on the historical cost basis except as provided in note 4. 2.3 Basis of consolidation The consolidated financial statements comprise the financial statements of the Company and its wholly owned subsidiaries controlled by the Company (the “Group”) as at September 30, 2018. Subsidiaries are fully consolidated from the date of acquisition, being the date on which the Group obtains control, and continue to be consolidated until the date when such control ceases. The financial statements of the subsidiaries are prepared for the same reporting period as the parent company, using consistent accounting policies. All inter-group balances, transactions, unrealized gains and losses resulting from inter-group transactions and dividends are eliminated in full. 2.4 Functional and presentation currency The functional currency is the currency of the primary economic environment in which the entity operates and has been determined for each entity within the Group. These consolidated financial statements are presented in Canadian Dollars, which is the Company’s functional currency. The functional currency of ELL Technologies Limited and Lingo Group Limited are United States Dollar (“USD”). All other subsidiaries’ functional currency is Canadian Dollar (“CAD”). The functional currency determinations were conducted through an analysis of the consideration factors identified in IAS 21, |
Note 3 - Significant Accounting
Note 3 - Significant Accounting Judgments, Estimates and Assumptions | 9 Months Ended |
Sep. 30, 2018 | |
Statement Line Items [Line Items] | |
Disclosure of accounting judgements and estimates [text block] | 3. SIGNIFICANT ACCOUNTING JUDGEMENTS, ESTIMATES AND ASSUMPTIONS The preparation of the Company’s condensed consolidated interim financial statements in conformity with IFRS requires management to make judgments, estimates and assumptions that affect the application of accounting policies, reported amounts of assets, liabilities and contingent liabilities, revenues and expenses at the date of the consolidated financial statements and during the reporting period. Estimates and assumptions are continuously evaluated and are based on management’s historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. However, actual outcomes can differ from these estimates. Revisions to accounting estimates are recognized in the period in which the estimate is revised if the revision affects only that period or in the period of the revision and further periods if the review affects both current and future periods. Information about critical judgements in applying accounting policies that have the most significant effect on the amounts recognized in the consolidated financial statements is included in the following notes: ● Determination of functional currency ● Determination of allowance for doubtful accounts ● Determination of the recoverability of the carrying value of intangibles and goodwill ● Recognition of internally developed intangibles ● Determination and recognition of long-term revenue contracts ● Recognition of government grant and grant receivable ● Recognition of deferred tax assets ● Valuation of share-based payments ● Recognition of provisions and contingent liabilities |
Note 4 - Summary of Significant
Note 4 - Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2018 | |
Statement Line Items [Line Items] | |
Disclosure of significant accounting policies [text block] | 4. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The accounting policies applied by the Company in these Condensed Consolidated Interim Financial Statements are the same as those applied by the Company in its Consolidated Financial Statements for the year ended December 31, 2017, New Standards Adopted in Current Year IFRS 2 June 2016. January 1, 2018. not IFRS 9 9 January 1, 2018. not IFRS 15 June 2014. 15 15, 18. 15 January 1, 2018. not 15. |
Note 5 - Accounts and Grants Re
Note 5 - Accounts and Grants Receivable | 9 Months Ended |
Sep. 30, 2018 | |
Statement Line Items [Line Items] | |
Disclosure of trade and other receivables [text block] | 5. ACCOUNTS AND GRANTS RECEIVABLE Accounts and grants receivable consist of: September 30 , 201 8 December 31 , 201 7 Trade receivable $ 944,809 $ 947,911 Grants receivable 172,485 22,556 $ 1,117,294 $ 970,467 |
Note 6 - Property and Equipment
Note 6 - Property and Equipment | 9 Months Ended |
Sep. 30, 2018 | |
Statement Line Items [Line Items] | |
Disclosure of property, plant and equipment [text block] | 6. PROPERTY AND EQUIPMENT Cost, January 1, 2017 $ 80,713 Additions 9,923 Effect of foreign exchange (942 ) Cost, September 30, 2017 $ 89,694 Additions - Effect of foreign exchange 93 Cost, December 31, 2017 $ 89,787 Additions 6,039 Effect of foreign exchange 326 Cost, September 30, 2018 96,152 Accumulated depreciation, January 1, 2017 $ 53,225 Charge for the period 4,725 Effect of foreign exchange (855 ) Accumulated depreciation, September 30, 2017 $ 57,095 Charge for the period 1,919 Effect of foreign exchange 84 Accumulated depreciation, December 31, 2017 $ 59,098 Charge for the period 4,761 Effect of foreign exchange 299 Accumulated depreciation, September 30, 2018 $ 64,158 Net book value, January 1, 2017 $ 27,488 Net book value, September 30, 2017 $ 32,517 Net book value, December 31, 2017 $ 30,689 Net book value, September 30 , 201 8 $ 31,994 |
Note 7 - Intangibles
Note 7 - Intangibles | 9 Months Ended |
Sep. 30, 2018 | |
Statement Line Items [Line Items] | |
Disclosure of intangible assets [text block] | 7. INTANGIBLES Software and W eb D evelopment Content Platform Content Development Total Cost, January 1, 2017 $ 9,239,087 $ 1,477,112 $ 2,474,020 $ 13,190,219 Additions 590,542 - 1,149,459 1,740,001 Cost, September 30, 2017 $ 9,829,629 $ 1,477,112 $ 3,623,479 $ 14,930,220 Impairment (590,542 ) - (1,149,459 ) (1,740,001 ) Cost, December 31, 2017 9,239,087 1,477,112 2,474,020 13,190,219 Cost, September 30 , 201 8 $ 9,239,088 $ 1,477,112 $ 2,474,020 $ 13,190,219 Accumulated depreciation, January 1, 2017 $ 8,229,946 $ 1,477,112 $ 483,152 $ 10,190,210 Charge for the period 522,315 - 450,352 972,667 Accumulated depreciation, September 30, 2017 $ 8,752,261 $ 1,477,112 $ 933,504 $ 11,162,877 Charge for the period 34,809 - 44,452 79,261 Impairment 452,018 - 1,496,063 1,948,081 Accumulated depreciation, December 31, 2017 9,239,088 1,477,112 2,474,019 13,190,219 Accumulated depreciation, September 30, 201 8 $ 9,239,088 $ 1,477,112 $ 2,474,019 $ 13,190,219 Net book value, December 31, 2017 $ - $ - $ - $ - Net book value, September 30, 2018 $ - $ - $ - $ - The Company began commercial production and sale of its services and products during 2009. 2018, $xx 2017 $1,740,001 five three five The Company previously capitalized all development costs related to its software web development, content platform, and content development through to December 31, 2016. December 31, 2017, not may not December 31, 2017 September 30, 2018 not |
Note 8 - Loans Payable
Note 8 - Loans Payable | 9 Months Ended |
Sep. 30, 2018 | |
Statement Line Items [Line Items] | |
Disclosure of borrowings [text block] | 8. LOANS PAYABLE September 30 201 8 December 31 2017 Loans payable, interest bearing at 12% per annum with monthly interest payments, due on demand (i) $ 195,000 $ 300,000 $ 195,000 $ 300,000 (i) The Company received an unsecured short-term loan during the period. Included in loans payable are loans amounting to $90,000 2017 $Nil 17. |
Note 9 - Share Capital
Note 9 - Share Capital | 9 Months Ended |
Sep. 30, 2018 | |
Statement Line Items [Line Items] | |
Disclosure of share capital, reserves and other equity interest [text block] | 9. SHARE CAPITAL Authorized Unlimited number of preference shares with no Unlimited number of common shares with no |
Note 10 - Share-based Payments
Note 10 - Share-based Payments | 9 Months Ended |
Sep. 30, 2018 | |
Statement Line Items [Line Items] | |
Disclosure of share-based payment arrangements [text block] | 1 0 . SHARE-BASED PAYMENTS In December 2017, “2017 2017 may 2017 7,105,838 1996 2000 2005 2009 2011 The maximum number of common shares that may one 2017 5% The exercise price of each option cannot be less than the market price of the shares on the day immediately preceding the day of the grant less any permitted discount. The exercise period of the options granted cannot exceed 10 2017 not may, 2017 may The following summarizes the options outstanding: Number of Options Weighted Average Exercise Price Weighted Average Remaining Contract Life (Yrs) Outstanding as at January 1, 2017 2,045,835 $ 0.18 0.86 Granted 1,972,000 0.39 Expired (938,335 ) 0.62 Outstanding as at September 30, 2017 3,079,500 $ 0.20 Granted 2,040,000 0.20 Expired (1,110,750 ) 0.18 Forfeited (9,750 ) 0.13 Outstanding as at December 31, 201 7 3,999,000 $ 0.21 2.77 Forfeited (113,000 ) 0.23 Outstanding as at Sep tember 30 , 201 8 3,886,000 $ 0.21 2.51 Options exercisable as at September 30, 2017 1,451,570 $ 0.19 Options exe rcisable as at December 31, 2017 2,577,000 $ 0.21 Options exercisable as at September 30, 201 8 3,549,125 $ 0.21 The weighted average remaining contractual life for the stock options outstanding as at September 30, 2018 1.97 2017 1.30 2016 1.38 September 30, 2018 $0.20 $0.23 2017 $0.13 $0.24, 2016 $0.13 $0.77 $0.12 2017 $0.0762, 2016 $0.2641 The vesting periods on the options granted in 2017 1,995,000 185,000 1,832,000 3 three 2016, nine 2015, The pricing model assumed the weighted average risk free interest rates of 1.39% 2017 0.85%, 2016 0.44% Nil 2017 Nil, 2016 Nil 97% 2017 48%, 2016 58% zero $0.21 $0.21 3 2017 3 2016 2.58 |
Note 11 - Income Tax
Note 11 - Income Tax | 9 Months Ended |
Sep. 30, 2018 | |
Statement Line Items [Line Items] | |
Disclosure of income tax [text block] | 1 1. INCOME TAX Income tax expense is accrued upon recognition of revenue and is withheld at source on remittances from China. |
Note 12 - Government Grants
Note 12 - Government Grants | 9 Months Ended |
Sep. 30, 2018 | |
Statement Line Items [Line Items] | |
Disclosure of government grants [text block] | 12. GOVERNMENT GRANTS Included as a reduction of selling, general and administrative expenses are government grants of $182,077 2017 $172,088 $172,485 2017 $166,399 One government grant for the print-based ELL segment is repayable in the event that the segment’s annual net income for each of the previous two 15% not no One grant, relating to the Company’s “Development of Comprehensive, Interactive Phonetic English Learning Solution” project, is repayable semi-annually at a royalty rate of 2.5% 100% |
Note 13 - Financial Instruments
Note 13 - Financial Instruments | 9 Months Ended |
Sep. 30, 2018 | |
Statement Line Items [Line Items] | |
Disclosure of financial instruments [text block] | 13. FINANCIAL INSTRUMENTS a. Fair values The carrying value of cash and accounts and grants receivable, approximates its fair value due to the liquidity of these instruments. The carrying value of accounts payables and accrued liabilities and loans payables approximates its fair value due to the requirement to extinguish the liabilities on demand. b. Financial risk management objectives and policies The financial risk arising from the Company’s operations are currency risk and liquidity risk. These risks arise from the normal course of operations and all transactions undertaken are to support the Group’s ability to continue as a going concern. The risks associated with these financial instruments and the policies on how to mitigate these risks. Management manages and monitors these exposures to ensure appropriate measures are implemented on a timely and effective manner. The Company’s Management oversees these risks. The Board of Directors reviews and agrees on policies for managing each of these risks. c. Foreign currency risk The Company operates internationally and is exposed to foreign exchange risk as certain expenditures are denominated in non-Canadian Dollar currencies. The Company has been exposed to this fluctuation and has not A 10% $35,457 2017 $123,717 10% September 30, 2018 September 30, 2018 US Denominated Cash $ 71,818 Accounts receivable 730,740 Accounts payable 56,298 d. Liquidity risk The Company manages its liquidity risk by preparing and monitoring forecasts of cash expenditures to ensure that it will have sufficient liquidity to meet liabilities when due. The Company’s accounts payable and accrued liabilities generally have maturities of less than 90 September 30, 2018, $118,689, $1,117,294 $116,904 $970,602. e. Credit Risk Credit risk refers to the risk that one September 30, 2018, $944,809. not 1 |
Note 14 - Capital Management
Note 14 - Capital Management | 9 Months Ended |
Sep. 30, 2018 | |
Statement Line Items [Line Items] | |
Disclosure of objectives, policies and processes for managing capital [text block] | 14. CAPITAL MANAGEMENT The Company’s primary objectives when managing capital are to (a) safeguard the Company’s ability to develop, market, distribute and sell English language learning products, and (b) provide a sound capital structure for raising capital at a reasonable cost for the funding of ongoing development of its products and new growth initiatives. The Board of Directors does not The Company includes equity, comprised of issued share capital, warrants, share-based payments reserve and deficit, in the definition of capital. The Company is dependent on cash flow from co-publishing and distribution agreements and external financing to fund its activities. In order to carry out planned development of its products and pay for administrative costs, the Company will spend its existing working capital and raise additional amounts as needed. Management reviews its capital management approach on an ongoing basis and believes that this approach, given the relative size of the Company, is reasonable. There has been no 2018 2017. |
Note 15 - Segmented Information
Note 15 - Segmented Information | 9 Months Ended |
Sep. 30, 2018 | |
Statement Line Items [Line Items] | |
Disclosure of entity's operating segments [text block] | 15. SEGMENTED INFORMATION The Company operates two Print-based English Language Learning: Lingo Learning is a print-based publisher of English language learning textbook programs in China. It earns significantly higher royalties from Licensing Sales compared to Finished Product Sales. Online English Language Learning: ELL Technologies is a global web-based educational technology (“EdTech”) English language learning training and assessment company. It earns training revenue by developing and hosting online English language learning solutions for its customers, both off the shelf and customized solutions. The company reports an aggregate revenue number that incorporates all revenues generated from print-based and online-based segments. The revenue of print-based is the royalty income from People’s Education & Audio Visual Press. The revenue of online-based is from licensing revenue to the Company’s online English Education programs. Transactions between operating segments are recorded at the exchange amount and eliminated upon consolidation. Segmented I nformation (B efore O ther F inancial I tems Below) September 30 , 201 8 Online English Language Learning Print-Based English Language Learning Total Segmented assets $ 260,098 $ 1,124,783 $ 1,384,881 Segmented liabilities 237,912 732,691 970,603 Segmented revenue 297,022 930,010 1,227,032 Segmented direct costs 98,870 68,315 167,185 Segmented selling, general & administrative 608,826 319,537 928,363 Segmented profit / (loss) (533,255 ) 391,403 (141,852 ) September 30 , 201 7 Online English Language Learning Print-Based English Language Learning Total Segmented assets $ 5,473,679 $ 1,200,393 $ 6,674,072 Segmented liabilities 250,512 342,480 592,992 Segmented revenue 1,066,887 954,919 2,021,806 Segmented direct costs 86,703 67,138 153,841 Segmented selling, general & administrative 450,733 430,287 881,020 Segmented intangible amortization 972,667 - 972,667 Segmented other expense 532 148,392 149,368 Segmented income (loss) (444,192 ) 309,102 (135,090 ) Segmented intangible addition 1,740,001 - 1,740,001 Other Financial Items 2018 2017 Online English Language Learning segmented income (loss) $ (533,255 ) $ (444,192 ) Print-Based English Language Learning segmented income 391,403 309,102 Foreign exchange 48,988 (195,572 ) Interest expense and other financial expense (43,032 ) (31,524 ) Share-based payment (87,539 ) (65,560 ) Other comprehensive income (loss) (3,579 ) (1,767 ) Total Comprehensive Income $ (227,014 ) $ (429,513 ) Revenue by Geographic Region 2018 2017 2016 Latin America $ 240,695 $ 1,000,845 $ 835,943 China 952,090 968,805 1,553,718 Other 34,247 52,156 69,251 $ 1,227,032 $ 2,021,806 $ 2,458,912 Identifiable Assets by Geographic Region 2018 2017 201 6 Canada $ 1,378,026 $ 6,674,072 $ 6,948,988 China 6,855 - 7,262 $ 1,384,881 $ 6,674,072 $ 6,956,250 |
Note 16 - Supplemental Cash Flo
Note 16 - Supplemental Cash Flow Information | 9 Months Ended |
Sep. 30, 2018 | |
Statement Line Items [Line Items] | |
Disclosure of supplemental cash flow information [text block] | 16 . SUPPLEMENTAL CASH FLOW INFORMATION 2018 201 7 201 6 Income taxes and other taxes paid $ 154,654 $ 144,643 $ 157,249 Interest paid $ 43,032 $ 31,524 $ 22,786 |
Note 17 - Related Party Balance
Note 17 - Related Party Balances and Transactions | 9 Months Ended |
Sep. 30, 2018 | |
Statement Line Items [Line Items] | |
Disclosure of transactions between related parties [text block] | 17. RELATED PARTY BALANCES AND TRANSACTIONS During the period, the Company had the following transactions with related parties, made in the normal course of operations, and accounted for at an amount of consideration established and agreed to by the Company and related parties. (a) For the nine September 30, 2018, $153,766 2017 $31,687 (b) Key management compensation for the nine September 30, 2018 $250,197 2017 $247,500 $247,500 (c) At September 30, 2018, two $195,000 2017 $nil 12% $15,682 2017 $16,050 |
Significant Accounting Policies
Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2018 | |
Discloure of Significant Accounting Policies | |
Description of accounting policy for new accounting standards adopted in the current year [text block] | New Standards Adopted in Current Year IFRS 2 June 2016. January 1, 2018. not IFRS 9 9 January 1, 2018. not IFRS 15 June 2014. 15 15, 18. 15 January 1, 2018. not 15. |
Note 5 - Accounts and Grants _2
Note 5 - Accounts and Grants Receivable (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Statement Line Items [Line Items] | |
Schedule of accounts and grants receivable [text block] | September 30 , 201 8 December 31 , 201 7 Trade receivable $ 944,809 $ 947,911 Grants receivable 172,485 22,556 $ 1,117,294 $ 970,467 |
Note 6 - Property and Equipme_2
Note 6 - Property and Equipment (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Statement Line Items [Line Items] | |
Disclosure of detailed information about property, plant and equipment [text block] | Cost, January 1, 2017 $ 80,713 Additions 9,923 Effect of foreign exchange (942 ) Cost, September 30, 2017 $ 89,694 Additions - Effect of foreign exchange 93 Cost, December 31, 2017 $ 89,787 Additions 6,039 Effect of foreign exchange 326 Cost, September 30, 2018 96,152 Accumulated depreciation, January 1, 2017 $ 53,225 Charge for the period 4,725 Effect of foreign exchange (855 ) Accumulated depreciation, September 30, 2017 $ 57,095 Charge for the period 1,919 Effect of foreign exchange 84 Accumulated depreciation, December 31, 2017 $ 59,098 Charge for the period 4,761 Effect of foreign exchange 299 Accumulated depreciation, September 30, 2018 $ 64,158 Net book value, January 1, 2017 $ 27,488 Net book value, September 30, 2017 $ 32,517 Net book value, December 31, 2017 $ 30,689 Net book value, September 30 , 201 8 $ 31,994 |
Note 7 - Intangibles (Tables)
Note 7 - Intangibles (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Statement Line Items [Line Items] | |
Disclosure of detailed information about intangible assets [text block] | Software and W eb D evelopment Content Platform Content Development Total Cost, January 1, 2017 $ 9,239,087 $ 1,477,112 $ 2,474,020 $ 13,190,219 Additions 590,542 - 1,149,459 1,740,001 Cost, September 30, 2017 $ 9,829,629 $ 1,477,112 $ 3,623,479 $ 14,930,220 Impairment (590,542 ) - (1,149,459 ) (1,740,001 ) Cost, December 31, 2017 9,239,087 1,477,112 2,474,020 13,190,219 Cost, September 30 , 201 8 $ 9,239,088 $ 1,477,112 $ 2,474,020 $ 13,190,219 Accumulated depreciation, January 1, 2017 $ 8,229,946 $ 1,477,112 $ 483,152 $ 10,190,210 Charge for the period 522,315 - 450,352 972,667 Accumulated depreciation, September 30, 2017 $ 8,752,261 $ 1,477,112 $ 933,504 $ 11,162,877 Charge for the period 34,809 - 44,452 79,261 Impairment 452,018 - 1,496,063 1,948,081 Accumulated depreciation, December 31, 2017 9,239,088 1,477,112 2,474,019 13,190,219 Accumulated depreciation, September 30, 201 8 $ 9,239,088 $ 1,477,112 $ 2,474,019 $ 13,190,219 Net book value, December 31, 2017 $ - $ - $ - $ - Net book value, September 30, 2018 $ - $ - $ - $ - |
Note 8 - Loans Payable (Tables)
Note 8 - Loans Payable (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Statement Line Items [Line Items] | |
Disclosure of detailed information about borrowings [text block] | September 30 201 8 December 31 2017 Loans payable, interest bearing at 12% per annum with monthly interest payments, due on demand (i) $ 195,000 $ 300,000 $ 195,000 $ 300,000 |
Note 10 - Share-based Payments
Note 10 - Share-based Payments (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Statement Line Items [Line Items] | |
Disclosure of number and weighted average exercise prices of share options [text block] | Number of Options Weighted Average Exercise Price Weighted Average Remaining Contract Life (Yrs) Outstanding as at January 1, 2017 2,045,835 $ 0.18 0.86 Granted 1,972,000 0.39 Expired (938,335 ) 0.62 Outstanding as at September 30, 2017 3,079,500 $ 0.20 Granted 2,040,000 0.20 Expired (1,110,750 ) 0.18 Forfeited (9,750 ) 0.13 Outstanding as at December 31, 201 7 3,999,000 $ 0.21 2.77 Forfeited (113,000 ) 0.23 Outstanding as at Sep tember 30 , 201 8 3,886,000 $ 0.21 2.51 Options exercisable as at September 30, 2017 1,451,570 $ 0.19 Options exe rcisable as at December 31, 2017 2,577,000 $ 0.21 Options exercisable as at September 30, 201 8 3,549,125 $ 0.21 |
Note 13 - Financial Instrumen_2
Note 13 - Financial Instruments (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Statement Line Items [Line Items] | |
Disclosure of detailed information about financial instruments [text block] | US Denominated Cash $ 71,818 Accounts receivable 730,740 Accounts payable 56,298 |
Note 15 - Segmented Informati_2
Note 15 - Segmented Information (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Statement Line Items [Line Items] | |
Disclosure of operating segments [text block] | September 30 , 201 8 Online English Language Learning Print-Based English Language Learning Total Segmented assets $ 260,098 $ 1,124,783 $ 1,384,881 Segmented liabilities 237,912 732,691 970,603 Segmented revenue 297,022 930,010 1,227,032 Segmented direct costs 98,870 68,315 167,185 Segmented selling, general & administrative 608,826 319,537 928,363 Segmented profit / (loss) (533,255 ) 391,403 (141,852 ) September 30 , 201 7 Online English Language Learning Print-Based English Language Learning Total Segmented assets $ 5,473,679 $ 1,200,393 $ 6,674,072 Segmented liabilities 250,512 342,480 592,992 Segmented revenue 1,066,887 954,919 2,021,806 Segmented direct costs 86,703 67,138 153,841 Segmented selling, general & administrative 450,733 430,287 881,020 Segmented intangible amortization 972,667 - 972,667 Segmented other expense 532 148,392 149,368 Segmented income (loss) (444,192 ) 309,102 (135,090 ) Segmented intangible addition 1,740,001 - 1,740,001 Other Financial Items 2018 2017 Online English Language Learning segmented income (loss) $ (533,255 ) $ (444,192 ) Print-Based English Language Learning segmented income 391,403 309,102 Foreign exchange 48,988 (195,572 ) Interest expense and other financial expense (43,032 ) (31,524 ) Share-based payment (87,539 ) (65,560 ) Other comprehensive income (loss) (3,579 ) (1,767 ) Total Comprehensive Income $ (227,014 ) $ (429,513 ) |
Disclosure of geographical areas [text block] | 2018 2017 2016 Latin America $ 240,695 $ 1,000,845 $ 835,943 China 952,090 968,805 1,553,718 Other 34,247 52,156 69,251 $ 1,227,032 $ 2,021,806 $ 2,458,912 2018 2017 201 6 Canada $ 1,378,026 $ 6,674,072 $ 6,948,988 China 6,855 - 7,262 $ 1,384,881 $ 6,674,072 $ 6,956,250 |
Note 16 - Supplemental Cash F_2
Note 16 - Supplemental Cash Flow Information (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Statement Line Items [Line Items] | |
Disclosure of supplemental cash flows schedule [text block] | 2018 201 7 201 6 Income taxes and other taxes paid $ 154,654 $ 144,643 $ 157,249 Interest paid $ 43,032 $ 31,524 $ 22,786 |
Note 1 - Corporate Information
Note 1 - Corporate Information (Details Textual) | 9 Months Ended |
Sep. 30, 2018 | |
Statement Line Items [Line Items] | |
Number of reportable segments | 2 |
Note 5 - Accounts and Grants _3
Note 5 - Accounts and Grants Receivable - Schedule of Receivables (Details) - CAD ($) | Sep. 30, 2018 | Dec. 31, 2017 | Sep. 30, 2017 |
Statement Line Items [Line Items] | |||
Trade receivable | $ 944,809 | $ 947,911 | |
Grants receivable | 172,485 | 22,556 | $ 166,399 |
$ 1,117,294 | $ 970,467 |
Note 6 - Property and Equipme_3
Note 6 - Property and Equipment - Schedule of Property and Equipment (Details) - CAD ($) | 3 Months Ended | 9 Months Ended | |
Dec. 31, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Statement Line Items [Line Items] | |||
Balance | $ 30,689 | ||
Balance | $ 30,689 | 31,994 | |
Balance | 30,689 | 31,994 | |
Computer and office equipment [member] | |||
Statement Line Items [Line Items] | |||
Balance | 32,517 | 30,689 | $ 27,488 |
Balance | 30,689 | 31,994 | 32,517 |
Balance | 32,517 | 30,689 | 27,488 |
Computer and office equipment [member] | Gross carrying amount [member] | |||
Statement Line Items [Line Items] | |||
Balance | 89,694 | 89,787 | 80,713 |
Additions | 6,039 | 9,923 | |
Effect of foreign exchange | 93 | 326 | (942) |
Balance | 89,787 | 96,152 | 89,694 |
Balance | 89,694 | 89,787 | 80,713 |
Computer and office equipment [member] | Accumulated depreciation, amortisation and impairment [member] | |||
Statement Line Items [Line Items] | |||
Balance | 57,095 | 59,098 | 53,225 |
Effect of foreign exchange | 84 | 299 | (855) |
Balance | 59,098 | 64,158 | 57,095 |
Charge for the period | 1,919 | 4,761 | 4,725 |
Balance | $ 57,095 | $ 59,098 | $ 53,225 |
Note 7 - Intangibles (Details T
Note 7 - Intangibles (Details Textual) - CAD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Statement Line Items [Line Items] | ||||
Purchase of intangible assets | $ 149,581 | $ 0 | $ 1,740,001 |
Note 7 - Intangibles - Schedule
Note 7 - Intangibles - Schedule of Intangibles (Details) - CAD ($) | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2017 | Sep. 30, 2017 | Sep. 30, 2018 | Dec. 31, 2016 | |
Statement Line Items [Line Items] | ||||
Balance | ||||
Software and web development [member] | ||||
Statement Line Items [Line Items] | ||||
Balance | ||||
Content platform [member] | ||||
Statement Line Items [Line Items] | ||||
Balance | ||||
Content development [member] | ||||
Statement Line Items [Line Items] | ||||
Balance | ||||
Gross carrying amount [member] | ||||
Statement Line Items [Line Items] | ||||
Balance | 13,190,219 | $ 14,930,220 | 13,190,219 | $ 13,190,219 |
Additions | 1,740,001 | |||
Impairment | (1,740,001) | |||
Gross carrying amount [member] | Software and web development [member] | ||||
Statement Line Items [Line Items] | ||||
Balance | 9,239,087 | 9,829,629 | 9,239,088 | 9,239,087 |
Additions | 590,542 | |||
Impairment | (590,542) | |||
Gross carrying amount [member] | Content platform [member] | ||||
Statement Line Items [Line Items] | ||||
Balance | 1,477,112 | 1,477,112 | 1,477,112 | 1,477,112 |
Additions | ||||
Impairment | ||||
Gross carrying amount [member] | Content development [member] | ||||
Statement Line Items [Line Items] | ||||
Balance | 2,474,020 | 3,623,479 | 2,474,020 | 2,474,020 |
Additions | 1,149,459 | |||
Impairment | (1,149,459) | |||
Accumulated depreciation, amortisation and impairment [member] | ||||
Statement Line Items [Line Items] | ||||
Balance | 13,190,219 | 11,162,877 | 13,190,219 | 10,190,210 |
Impairment | 1,948,081 | |||
Charge for the period | 79,261 | 972,667 | ||
Accumulated depreciation, amortisation and impairment [member] | Software and web development [member] | ||||
Statement Line Items [Line Items] | ||||
Balance | 9,239,088 | 8,752,261 | 9,239,088 | 8,229,946 |
Impairment | 452,018 | |||
Charge for the period | 34,809 | 522,315 | ||
Accumulated depreciation, amortisation and impairment [member] | Content platform [member] | ||||
Statement Line Items [Line Items] | ||||
Balance | 1,477,112 | 1,477,112 | 1,477,112 | 1,477,112 |
Impairment | ||||
Charge for the period | ||||
Accumulated depreciation, amortisation and impairment [member] | Content development [member] | ||||
Statement Line Items [Line Items] | ||||
Balance | 2,474,019 | 933,504 | $ 2,474,019 | $ 483,152 |
Impairment | 1,496,063 | |||
Charge for the period | $ 44,452 | $ 450,352 |
Note 8 - Loans Payable (Details
Note 8 - Loans Payable (Details Textual) - CAD ($) | Sep. 30, 2018 | Dec. 31, 2017 |
Unsecured loan [member] | ||
Statement Line Items [Line Items] | ||
Amounts payable, related party transactions | $ 90,000 | $ 0 |
Note 8 - Loans Payable - Schedu
Note 8 - Loans Payable - Schedule of Loans Outstanding (Details) - CAD ($) | Sep. 30, 2018 | Dec. 31, 2017 | |
Statement Line Items [Line Items] | |||
Loans payable, interest bearing at 12% per annum with monthly interest payments, due on demand (i) | [1] | $ 195,000 | $ 300,000 |
[1] | The Company received an unsecured short-term loan during the period. Included in loans payable are loans amounting to $90,000 (2017 - $Nil) from related parties as disclosed in Note 17. |
Note 8 - Loans Payable - Sche_2
Note 8 - Loans Payable - Schedule of Loans Outstanding (Details) (Parentheticals) | Sep. 30, 2018 | Dec. 31, 2017 |
Statement Line Items [Line Items] | ||
Borrowings, interest rate | 12.00% | 12.00% |
Note 9 - Share Capital (Details
Note 9 - Share Capital (Details Textual) $ / shares in Thousands | Sep. 30, 2018$ / shares |
Preference shares [member] | |
Statement Line Items [Line Items] | |
Par value per share | $ 0 |
Ordinary shares [member] | |
Statement Line Items [Line Items] | |
Par value per share | $ 0 |
Note 10 - Share-based Payment_2
Note 10 - Share-based Payments (Details Textual) | Dec. 31, 2017Rateshares | Sep. 30, 2018CAD ($) | Sep. 30, 2017CAD ($) | Sep. 30, 2016CAD ($) | Dec. 31, 2017Rateshares | Dec. 31, 2016 |
Statement Line Items [Line Items] | ||||||
Option life, share options granted | 3 | 3 | 2.58 | |||
Weighted average remaining contractual life of outstanding share options | 2.77 | 2.51 | 2.77 | 0.86 | ||
Share-based payment arrangements, option vesting period | 270 days | |||||
Share-based payment arrangements, option vesting period, required period before vesting begins | 90 days | |||||
Risk free interest rate, share options granted | 1.39% | 85.00% | 0.44% | |||
Expected dividend, share options granted | $ 0 | $ 0 | $ 0 | |||
Expected volatility, share options granted | 97.00% | 48.00% | 58.00% | |||
Exercise price, share options granted | $ 0.21 | $ 0.21 | $ 0.21 | |||
Weighted average share price, share options granted | $ 0.21 | $ 0.21 | $ 0.21 | |||
Forfeiture rate, share options granted | 0.00% | 0.00% | 0.00% | |||
Management, employees, directors and consultants [member] | ||||||
Statement Line Items [Line Items] | ||||||
Weighted average fair value at measurement date, share options granted | $ 0.12 | $ 0.0762 | $ 0.2641 | |||
Top of range [member] | ||||||
Statement Line Items [Line Items] | ||||||
Exercise price of outstanding share options | 0.23 | 0.24 | 0.77 | |||
Bottom of range [member] | ||||||
Statement Line Items [Line Items] | ||||||
Exercise price of outstanding share options | $ 0.20 | $ 0.13 | $ 0.13 | |||
The 2017 Stock Option Plan [member] | ||||||
Statement Line Items [Line Items] | ||||||
Number of shares reserved for issue under options and contracts for sale of shares | shares | 7,105,838 | 7,105,838 | ||||
Share reservation limitations, maximum percentage of allowed reserved shares | Rate | 500.00% | 500.00% | ||||
Weighted average remaining contractual life of outstanding share options | 1.97 | 1.3 | 1.38 | |||
The 2017 Stock Option Plan [member] | Top of range [member] | ||||||
Statement Line Items [Line Items] | ||||||
Option life, share options granted | 10 | |||||
Stock options vested immediately [member] | ||||||
Statement Line Items [Line Items] | ||||||
Share-based payment arrangement, Options, Vested, Number of Shares | shares | 1,995,000 | |||||
Stock options will vest upon achievements of non-market conditions [member] | ||||||
Statement Line Items [Line Items] | ||||||
Share-based payment arrangement, Options, Vested, Number of Shares | shares | 185,000 | |||||
Stock options that will vest quarterly over 3 years [member] | ||||||
Statement Line Items [Line Items] | ||||||
Share-based payment arrangement, Options, Vested, Number of Shares | shares | 1,832,000 | |||||
Share-based payment arrangements, option vesting period | 3 years |
Note 10 - Share-based Payment_3
Note 10 - Share-based Payments - Options Outstanding (Details) | 3 Months Ended | 9 Months Ended | |
Dec. 31, 2017CAD ($)shares | Sep. 30, 2018CAD ($)shares | Sep. 30, 2017CAD ($)shares | |
Statement Line Items [Line Items] | |||
Balance, number of options | 3,079,500 | 3,999,000 | 2,045,835 |
Granted, weighted average exercise price | $ 0.20 | $ 0.39 | |
Expired, weighted average remaining contract life (in shares) | shares | |||
Balance, number of options | 3,999,000 | 3,886,000 | 3,079,500 |
Forfeited, number of options | (9,750) | 113,000 | |
Balance, weighted average exercise price | $ 0.21 | $ 0.21 | $ 0.20 |
Forfeited, weighted average remaining contract life (in shares) | shares | |||
Options exercisable, weighted average exercise price | $ 0.21 | $ 0.21 | $ 0.19 |
Options exercisable, number of options | 2,577,000 | 3,549,125 | 1,451,570 |
Balance, weighted average exercise price | $ 0.20 | $ 0.21 | $ 0.18 |
Granted, weighted average remaining contract life (in shares) | shares | |||
Expired, number of options | (1,110,750) | (938,335) | |
Forfeited, weighted average exercise price | $ 0.13 | $ 0.23 | |
Balance, weighted average remaining contract life | 2.77 | 2.51 | |
Forfeited, number of options | 9,750 | (113,000) | |
Balance, weighted average remaining contract life | 2.77 | 0.86 | |
Granted, number of options | 2,040,000 | 1,972,000 | |
Expired, weighted average exercise price | $ 0.18 | $ 0.62 |
Note 12 - Government Grants (De
Note 12 - Government Grants (Details Textual) - CAD ($) | 9 Months Ended | ||
Sep. 30, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | |
Statement Line Items [Line Items] | |||
Government grants | $ 182,077 | $ 172,088 | |
Current grants receivables | $ 172,485 | $ 22,556 | $ 166,399 |
Development of comprehensive, interactive phonetic English learning solution project [member] | |||
Statement Line Items [Line Items] | |||
Royalty percentage | 2.50% | ||
Print-based English language learning segment [member] | |||
Statement Line Items [Line Items] | |||
Minimum threshold for the revenue of a period of three years for a grant liability to occur | 15.00% |
Note 13 - Financial Instrumen_3
Note 13 - Financial Instruments (Details Textual) - CAD ($) | 9 Months Ended | |||||
Sep. 30, 2018 | Sep. 30, 2017 | Jun. 30, 2018 | Dec. 31, 2017 | Jun. 30, 2017 | Dec. 31, 2016 | |
Statement Line Items [Line Items] | ||||||
Total cash and cash equivalents | $ 118,689 | $ 36,557 | $ 239,763 | $ 327,434 | $ 75,415 | $ 84,303 |
Current Trade and Grants Receivable | 1,117,294 | 970,467 | ||||
Current prepayments and other receivable | 116,904 | $ 205,482 | ||||
Currency risk [member] | ||||||
Statement Line Items [Line Items] | ||||||
Possible effect of 10% change in exchange rate regarding the USD to the net income (loss) | 35,457 | $ 123,717 | ||||
Liquidity risk [member] | ||||||
Statement Line Items [Line Items] | ||||||
Total cash and cash equivalents | 118,689 | |||||
Current Trade and Grants Receivable | 1,117,294 | |||||
Current prepayments and other receivable | 116,904 | |||||
Current liabilities | 970,602 | |||||
Credit risk [member] | ||||||
Statement Line Items [Line Items] | ||||||
Current Trade and Grants Receivable | $ 944,809 |
Note 13 - Financial Instrumen_4
Note 13 - Financial Instruments - Denominated Monetary Assets and Liabilities (Details) - Currency risk [member] | Sep. 30, 2018USD ($) |
Financial liabilities at amortised cost, category [member] | Trade and other payables [member] | |
Statement Line Items [Line Items] | |
Financial liabilities | $ 56,298 |
Financial assets at fair value through profit or loss, category [member] | Cash and cash equivalents [member] | |
Statement Line Items [Line Items] | |
Financial assets | 71,818 |
Loans and receivables, category [member] | Trade receivables [member] | |
Statement Line Items [Line Items] | |
Financial assets | $ 730,740 |
Note 15 - Segmented Informati_3
Note 15 - Segmented Information (Details Textual) | 9 Months Ended |
Sep. 30, 2018 | |
Statement Line Items [Line Items] | |
Number of reportable segments | 2 |
Note 15 - Segmented Informati_4
Note 15 - Segmented Information - Segment Earnings (Details) - CAD ($) | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | |
Statement Line Items [Line Items] | ||||||
Segmented assets | $ 1,384,881 | $ 1,534,072 | $ 1,384,881 | |||
Segmented liabilities | 970,602 | 980,318 | 970,602 | |||
Segmented revenue | 186,518 | $ 354,914 | 1,227,032 | $ 2,021,806 | $ 2,458,912 | |
Segmented direct costs | 73,979 | 42,124 | 167,185 | 153,841 | ||
Segmented selling, general & administrative | 303,739 | 290,963 | 928,363 | 881,020 | ||
Segmented profit / (loss) | (156,550) | (5,833,636) | (474,813) | (223,435) | (427,746) | |
Segmented intangible amortization | 370,993 | 972,667 | ||||
Foreign exchange | (14,968) | (77,418) | 48,988 | (195,572) | ||
Interest expense and other financial expense | (4,108) | (9,687) | (43,032) | (31,524) | ||
Share-based payment | (14,468) | (34,839) | (87,539) | (65,560) | ||
Other comprehensive income (loss) | $ 357 | (3,579) | (1,767) | |||
Total Comprehensive Income | (160,765) | (475,632) | (227,014) | (429,513) | ||
Online English language learning segment [member] | ||||||
Statement Line Items [Line Items] | ||||||
Segmented assets | 260,098 | 5,473,679 | 260,098 | 5,473,679 | ||
Segmented liabilities | 237,912 | 250,512 | 237,912 | 250,512 | ||
Segmented revenue | 297,022 | 1,066,887 | ||||
Segmented direct costs | 98,870 | 86,703 | ||||
Segmented selling, general & administrative | 608,826 | 450,733 | ||||
Segmented profit / (loss) | (533,255) | (444,192) | ||||
Segmented intangible amortization | 972,667 | |||||
Segmented other expense | 532 | |||||
Segmented intangible addition | 1,740,001 | |||||
Print-based English language learning segment [member] | ||||||
Statement Line Items [Line Items] | ||||||
Segmented assets | 1,124,783 | 1,200,393 | 1,124,783 | 1,200,393 | ||
Segmented liabilities | 732,691 | 342,480 | 732,691 | 342,480 | ||
Segmented revenue | 930,010 | 954,919 | ||||
Segmented direct costs | 68,315 | 67,138 | ||||
Segmented selling, general & administrative | 319,537 | 430,287 | ||||
Segmented profit / (loss) | 391,403 | 309,102 | ||||
Segmented intangible amortization | ||||||
Segmented other expense | 148,392 | |||||
Segmented intangible addition | ||||||
Total operating segments [member] | ||||||
Statement Line Items [Line Items] | ||||||
Segmented assets | 1,384,881 | 6,674,072 | 1,384,881 | 6,674,072 | ||
Segmented liabilities | $ 970,603 | $ 592,992 | 970,603 | 592,992 | ||
Segmented revenue | 1,227,032 | 2,021,806 | ||||
Segmented direct costs | 167,185 | 153,841 | ||||
Segmented selling, general & administrative | 928,363 | 881,020 | ||||
Segmented profit / (loss) | $ (141,852) | (135,090) | ||||
Segmented intangible amortization | 972,667 | |||||
Segmented other expense | 149,368 | |||||
Segmented intangible addition | $ 1,740,001 |
Note 15 - Segmented Informati_5
Note 15 - Segmented Information - Geographical Information (Details) - CAD ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | |
Statement Line Items [Line Items] | |||||
Revenue | $ 186,518 | $ 354,914 | $ 1,227,032 | $ 2,021,806 | $ 2,458,912 |
Identifiable non-current assets | 1,384,881 | 6,674,072 | 1,384,881 | 6,674,072 | 6,956,250 |
Latin America [member] | |||||
Statement Line Items [Line Items] | |||||
Revenue | 240,695 | 1,000,845 | 835,943 | ||
Country of domicile [member] | |||||
Statement Line Items [Line Items] | |||||
Identifiable non-current assets | 1,378,026 | 6,674,072 | 1,378,026 | 6,674,072 | 6,948,988 |
China [member] | |||||
Statement Line Items [Line Items] | |||||
Revenue | 952,090 | 968,805 | 1,553,718 | ||
Identifiable non-current assets | $ 6,855 | 6,855 | 7,262 | ||
Other [member] | |||||
Statement Line Items [Line Items] | |||||
Revenue | $ 34,247 | $ 52,156 | $ 69,251 |
Note 16 - Supplemental Cash F_3
Note 16 - Supplemental Cash Flow Information - Schedule of Income Taxes and Interest Paid (Details) - CAD ($) | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | |
Statement Line Items [Line Items] | |||
Income taxes and other taxes paid | $ 154,654 | $ 144,643 | $ 157,249 |
Interest paid | $ 43,032 | $ 31,524 | $ 22,786 |
Note 17 - Related Party Balan_2
Note 17 - Related Party Balances and Transactions (Details Textual) - CAD ($) | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | |
Statement Line Items [Line Items] | |||
Key management personnel compensation | $ 250,197 | $ 247,500 | |
Borrowings, interest rate | 12.00% | 12.00% | |
Corporations controlled by directors and officers of the entity [member] | |||
Statement Line Items [Line Items] | |||
Amounts receivable, related party transactions | $ 153,766 | 31,687 | |
Amounts payable, related party transactions | $ 195,000 | 0 | |
Borrowings, interest rate | 12.00% | ||
Interest income (expense) | $ (15,682) | $ (16,050) | |
Key management personnel of entity or parent [member] | |||
Statement Line Items [Line Items] | |||
Amounts payable, related party transactions | $ 247,500 |