Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Sep. 30, 2017 | Dec. 08, 2017 | Mar. 31, 2017 | |
Document And Entity Information | |||
Entity Registrant Name | ANAVEX LIFE SCIENCES CORP. | ||
Entity Central Index Key | 1,314,052 | ||
Document Type | 10-K | ||
Trading Symbol | AVXL | ||
Document Period End Date | Sep. 30, 2017 | ||
Amendment Flag | false | ||
Current Fiscal Year End Date | --09-30 | ||
Entity a Well-known Seasoned Issuer | No | ||
Entity a Voluntary Filer | No | ||
Entity's Reporting Status Current | Yes | ||
Entity Filer Category | Accelerated Filer | ||
Entity Public Float | $ 163,478,217 | ||
Entity Common Stock, Shares Outstanding | 44,220,833 | ||
Document Fiscal Period Focus | FY | ||
Document Fiscal Year Focus | 2,017 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) | Sep. 30, 2017 | Sep. 30, 2016 |
Current | ||
Cash and cash equivalents | $ 27,440,257 | $ 9,186,814 |
Sales tax recoverable | 9,748 | 79,347 |
Prepaid expenses | 335,928 | 180,124 |
Total Current Asset | 27,785,933 | 9,446,285 |
Deposits | 52,396 | 52,396 |
Total Assets | 27,838,329 | 9,498,681 |
Current | ||
Accounts payable and accrued liabilities | 3,584,334 | 3,119,993 |
Deferred grant income | 70,532 | |
Total Liabilities | 3,584,334 | 3,190,525 |
Commitments - Note 6 | ||
Capital stock Authorized: 100,000,000 common shares, par value $0.001 per share Issued and outstanding: 42,172,090 common shares (September 30, 2016 - 36,168,299) | 43,332 | 36,169 |
Additional paid-in capital | 115,689,221 | 84,290,140 |
Accumulated deficit | (91,478,558) | (78,018,153) |
Stockholders' equity | 24,253,995 | 6,308,156 |
Total liabilities and stockholder's equity | $ 27,838,329 | $ 9,498,681 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Sep. 30, 2017 | Sep. 30, 2016 |
Statement of Financial Position [Abstract] | ||
Common shares, authorized | 100,000,000 | 100,000,000 |
Common shares, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common shares, issued | 43,330,817 | 36,168,299 |
Common shares, outstanding | 43,330,817 | 36,168,299 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) | 12 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | |
Operating expenses | |||
General and administrative | $ 5,008,275 | $ 8,334,740 | $ 4,836,978 |
Research and development | 10,672,086 | 7,254,303 | 2,271,736 |
Total operating expenses | (15,680,361) | (15,589,043) | (7,108,714) |
Other income (expenses) | |||
Grant income | 140,942 | 141,195 | |
Research and development incentive income | 2,022,902 | 571,093 | |
Interest income (expense) , net | 88,098 | 11,322 | (71,825) |
Gain on settlement of accounts payable | 75,204 | 151,402 | |
Gain on settlement of debt | 61,205 | ||
Financing related charges and adjustments | (5,812) | (4,998,145) | |
Foreign exchange gain (loss) | (47,583) | (48,445) | 70,554 |
Total other income (expense), net | 2,279,563 | 881,960 | (4,999,416) |
Net loss before provision for income taxes | (13,400,798) | (14,707,083) | (12,108,130) |
Income tax expense | 59,607 | 29,615 | |
Net loss and comprehensive loss | $ (13,460,405) | $ (14,736,698) | $ (12,108,130) |
Loss per share | |||
Basic and diluted (in dollars per share) | $ (0.33) | $ (0.42) | $ (0.65) |
Weighted average number of shares outstanding | |||
Basic and diluted (in shares) | 40,841,033 | 35,153,426 | 18,584,820 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) | 12 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | |
Cash Flows used in Operating Activities | |||
Net loss | $ (13,460,405) | $ (14,736,698) | $ (12,108,130) |
Adjustments to reconcile net loss to net cash used in operations: | |||
Amortization and depreciation | 1,252 | 995 | |
Accretion of debt discount | 5,830 | 4,515,987 | |
Stock-based compensation | 4,135,570 | 5,062,267 | 1,633,979 |
Non-cash financing related charges | 29,000 | ||
Change in fair value of derivative financial instruments | 567,000 | ||
Loss (gain) on extinguishment of debt | (61,205) | (84,842) | |
Gain on settlement of accounts payable | (75,204) | (151,402) | |
Unrealized foreign exchange | 3,065 | (18,683) | |
Changes in non-cash working capital balances related to operations: | |||
Sales tax recoverable | 54,435 | (2,507) | (76,840) |
Prepaid expenses and deposits | (155,804) | (79,279) | (67,692) |
Deposits | (52,396) | ||
Accounts payable and accrued liabilities | 554,709 | 775,332 | 1,310,606 |
Deferred grant income | (70,532) | (1,082) | 71,614 |
Net cash used in operating activities | (9,017,231) | (9,236,823) | (4,227,006) |
Cash Flows provided by Financing Activities | |||
Issuance of common shares, net of share issue costs | 27,270,674 | 3,167,420 | 12,343,988 |
Repayment of promissory notes | (34,759) | (88,144) | |
Net cash provided by financing activities | 27,270,674 | 3,132,661 | 12,255,844 |
Increase (decrease) in cash and cash equivalents during the year | 18,253,443 | (6,104,162) | 8,028,838 |
Cash and cash equivalents, beginning of year | 9,186,814 | 15,290,976 | 7,262,138 |
Cash and cash equivalents, end of year | $ 27,440,257 | $ 9,186,814 | $ 15,290,976 |
CONSOLIDATED STATEMENT OF CHANG
CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY - USD ($) | Common Stock [Member] | Additional Paid-In Capital [Member] | Common Shares to be Issued [Member] | Accumulated Deficit [Member] | Total |
Balance Beginning at Sep. 30, 2014 | $ 11,800 | $ 50,714,151 | $ 640,000 | $ (51,173,325) | $ 192,626 |
Balance Beginning (in shares) at Sep. 30, 2014 | 11,800,063 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Shares issued under purchase agreement - purchase shares | $ 1,825 | 8,125,440 | 8,127,265 | ||
Shares issued under purchase agreement - purchase shares (in shares) | 1,825,000 | ||||
Shares issued under purchase agreement - commitment shares | $ 27 | (27) | |||
Shares issued under purchase agreement - commitment shares (in shares) | 27,144 | ||||
Capital stock issued pursuant to debt conversions - at $1.00 | $ 7,272 | 6,587,850 | 167,415 | 6,762,537 | |
Capital stock issued pursuant to debt conversions - at $1.00 (in shares) | 7,272,487 | ||||
Capital stock issued for cash - at $1.00 | $ 500 | 1,500 | 2,000 | ||
Capital stock issued for cash - at $1.00 (in shares) | 500,000 | ||||
Capital stock issued pursuant to subscriptions received - at $1.20 | $ 25 | 29,975 | (30,000) | ||
Capital stock issued pursuant to subscriptions received - at $1.20 (in shares) | 25,000 | ||||
Shares issued pursuant to the exercise of warrants - at $1.20 | $ 3,097 | 3,713,629 | 3,716,726 | ||
Shares issued pursuant to the exercise of warrants - at $1.20 (in shares) | 3,097,275 | ||||
Shares issued pursuant to the exercise of warrants - cashless | $ 6,839 | (6,839) | |||
Shares issued pursuant to the exercise of warrants - cashless (in shares) | 6,838,632 | ||||
Shares issued pursuant to favored nations provision | $ 659 | (659) | |||
Shares issued pursuant to favored nations provision (in shares) | 658,612 | 658,612 | |||
Reclassification of derivative liability | 4,482,000 | $ 4,482,000 | |||
Stock based compensation | 413,979 | 1,220,000 | 1,633,979 | ||
Net loss | (12,108,130) | (12,108,130) | |||
Balance Ending at Sep. 30, 2015 | $ 32,044 | 74,060,999 | 1,997,415 | (63,281,455) | 12,809,003 |
Balance Ending (in shares) at Sep. 30, 2015 | 32,044,213 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Shares issued under purchase agreement - purchase shares | $ 741 | 3,041,619 | 3,042,360 | ||
Shares issued under purchase agreement - purchase shares (in shares) | 740,523 | ||||
Shares issued under purchase agreement - commitment shares | $ 188 | (188) | |||
Shares issued under purchase agreement - commitment shares (in shares) | 187,616 | ||||
Capital stock issued pursuant to debt conversions - at $1.00 | $ 173 | 173,404 | (167,415) | 6,162 | |
Capital stock issued pursuant to debt conversions - at $1.00 (in shares) | 173,577 | ||||
Shares issued pursuant to the exercise of warrants | $ 42 | 125,020 | 125,062 | ||
Shares issued pursuant to the exercise of warrants (in shares) | 41,687 | ||||
Shares issued pursuant to the exercise of warrants - cashless | $ 1,979 | (1,979) | |||
Shares issued pursuant to the exercise of warrants - cashless (in shares) | 1,979,246 | ||||
Shares issued pursuant to employment agreement | $ 1,000 | 2,439,000 | (1,830,000) | 610,000 | |
Shares issued pursuant to employment agreement (in shares) | 1,000,000 | ||||
Shares issued for rounding in connection with 4:1 reverse stock split | $ 2 | (2) | |||
Shares issued for rounding in connection with 4:1 reverse stock split (in shares) | 1,437 | ||||
Stock based compensation | 4,452,267 | 4,452,267 | |||
Net loss | (14,736,698) | (14,736,698) | |||
Balance Ending at Sep. 30, 2016 | $ 36,169 | 84,290,140 | (78,018,153) | $ 6,308,156 | |
Balance Ending (in shares) at Sep. 30, 2016 | 36,168,299 | 36,168,299 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Shares issued under purchase agreement - purchase shares | $ 7,061 | 27,263,613 | $ 27,270,674 | ||
Shares issued under purchase agreement - purchase shares (in shares) | 7,060,976 | ||||
Shares issued under purchase agreement - commitment shares | $ 49 | (49) | |||
Shares issued under purchase agreement - commitment shares (in shares) | 48,980 | ||||
Shares issued pursuant to the exercise of warrants - cashless | $ 53 | (53) | |||
Shares issued pursuant to the exercise of warrants - cashless (in shares) | 52,562 | ||||
Stock based compensation | 4,135,570 | 4,135,570 | |||
Net loss | (13,460,405) | (13,460,405) | |||
Balance Ending at Sep. 30, 2017 | $ 43,332 | $ 115,689,221 | $ (91,478,558) | $ 24,253,995 | |
Balance Ending (in shares) at Sep. 30, 2017 | 43,330,817 | 43,330,817 |
CONSOLIDATED STATEMENT OF CHAN7
CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY (Parenthetical) - $ / shares | 12 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2015 | |
Statement of Stockholders' Equity [Abstract] | ||
Shares issued for rounding, reverse stock split | 4 | |
Share price of capital stock issued for cash | $ 1 | |
Share price of capital stock issued pursuant to debt conversions | 1 | |
Share price of capital stock issued pursuant to subscriptions received | 1.20 | |
Share price of Shares issued pursuant to the exercise of warrants | $ 1.20 |
Business Description and Basis
Business Description and Basis of Presentation | 12 Months Ended |
Sep. 30, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Business Description and Basis of Presentation | Note 1 Business Description and Basis of Presentation Business Anavex Life Sciences Corp. (the “Company”) is a clinical stage biopharmaceutical company engaged in the development of differentiated therapeutics for the treatment of neurodegenerative and neurodevelopmental diseases including drug candidates to treat Alzheimer’s disease, other central nervous system (CNS) diseases, pain and various types of cancer. The Company’s lead compound ANAVEX 2-73 is being developed to treat Alzheimer’s disease, Parkinson’s disease and potentially other CNS diseases, including rare diseases, such as Rett syndrome. Basis of Presentation These consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America and the instructions to Form 10-K. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Sep. 30, 2017 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Note 2 Summary of Significant Accounting Policies a) Use of Estimates The preparation of financial statements in accordance with United States generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses in the reporting period. The Company regularly evaluates estimates and assumptions related to deferred income tax asset valuations, asset impairment, conversion features embedded in convertible notes payable, derivative valuations, stock based compensation and loss contingencies. The Company bases its estimates and assumptions on current facts, historical experience and various other factors that it believes to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities and the accrual of costs and expenses that are not readily apparent from other sources. The actual results experienced by the Company may differ materially and adversely from the Company’s estimates. To the extent there are material differences between the estimates and the actual results, future results of operations will be affected. b) Principles of Consolidation These consolidated financial statements include the accounts of Anavex Life Sciences Corp. and its wholly-owned subsidiaries, Anavex Australia Pty Limited, a company incorporated under the laws of Australia, Anavex Germany GmbH, a company incorporated under the laws of Germany, and Anavex Canada Ltd., a company incorporated under the laws of the Province of Ontario, Canada. All inter-company transactions and balances have been eliminated. c) Cash and equivalents The Company considers only those investments which are highly liquid, readily convertible to cash and that mature within three months from the date of purchase to be cash equivalents. d) Research and Development Incentive Income The Company is eligible to obtain a research and development tax credit from the Australian Tax Authority (the “ATO”) for certain research and development activities undertaken in Australia. The tax incentive is available on the basis of specific criteria with which the Company must comply. Although the tax incentive is administered through the ATO, the Company has accounted for the tax incentive outside of the scope of ASC Topic 740, Income Taxes since the incentive is not linked to the Company’s income tax liability and can be realized regardless of whether the Company has generated taxable income in Australia. The Company recognizes as other income the amount received for qualified expenses in the period they are received. e) Basic and Diluted Loss per Share Basic loss per common share is computed by dividing net loss available to common stockholders by the weighted average number of common shares outstanding during the period. Diluted loss per common share is computed similar to basic loss per common share except that the denominator is increased to include the weighted average number of all potentially dilutive securities convertible into shares of common stock that were outstanding during the period. As of September 30, 2017, loss per share excludes 6,711,339 (2016 – 6,008,309) potentially dilutive common shares related to outstanding options and warrants, as their effect was anti-dilutive. f) Financial Instruments The carrying value of the Company’s financial instruments, consisting of cash and equivalents and accounts payable and accrued liabilities approximate their fair value due to the short-term maturity of such instruments. Unless otherwise noted, it is management’s opinion that the Company is not exposed to significant interest, currency or credit risks arising from these financial instruments. g) Foreign Currency Translation The functional currency of the Company is the US dollar. Monetary items denominated in a foreign currency are translated into US dollars at exchange rates prevailing at the balance sheet date and non-monetary items are translated at exchange rates prevailing when the assets were acquired or obligations incurred. Foreign currency denominated expense items are translated at exchange rates prevailing at the transaction date. Unrealized gains or losses arising from the translations are credited or charged to income in the period in which they occur. The Company has determined that the functional currency of Anavex Australia Pty Limited is the US dollar. The Company has determined that the functional currency of Anavex Germany GmbH is the US dollar. The functional currency of Anavex Canada Ltd. is the Canadian dollar. h) Research and Development Expenses Research and development costs are expensed as incurred. These expenses are comprised of the costs of the Company’s proprietary research and development efforts, including salaries, facilities costs, overhead costs and other related expenses, as well as costs incurred in connection with third-party collaboration efforts. Milestone payments made by the Company to third parties are expensed when the specific milestone has been achieved. In addition, the Company incurs expenses in respect of the acquisition of intellectual property relating to patents and trademarks. The probability of success and length of time to develop commercial applications of the drugs subject to the acquired patents and trademarks is difficult to determine and numerous risks and uncertainties exist with respect to the timely completion of the development projects. There is no assurance the acquired patents and trademarks will ever be successfully commercialized. Due to these risks and uncertainties, the acquisition of patents and trademarks does not meet the definition of an asset and thus are expensed as incurred within general and administrative expenses. i) Grant Income Research and development incentive income is recognized when the research and development activities have been undertaken and the Company has completed its assessment of whether such activities meet the relevant qualifying criteria. The Company recognizes such income at the fair value of the grant when it is received, and all substantive conditions have been satisfied. Grants received from government and other agencies in advance of the specific research and development costs to which they relate are deferred and recognized in the consolidated statement of operations in the period they are earned and when the related research and development costs are incurred. j) Income Taxes The Company has adopted the provisions of FASB ASC 740 “Income Taxes” (“ASC 740”) which requires the asset and liability method of accounting for income taxes. Under the asset and liability method, deferred tax assets and liabilities are recognized for the future tax consequences attributable to temporary differences between the financial statements carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The Company follows the provisions of ASC 740 regarding accounting for uncertainty in income taxes. The Company initially recognizes tax positions in the financial statements when it is more likely than not the position will be sustained upon examination by the tax authorities. Such tax positions are initially and subsequently measured as the largest amount of tax benefit that is greater than 50% likely of being realized upon ultimate settlement with the tax authority assuming full knowledge of the position and all relevant facts. Application requires numerous estimates based on available information. The Company considers many factors when evaluating and estimating its tax positions and tax benefits, and its recognized tax positions and tax benefits may not accurately anticipate actual outcomes. As additional information is obtained, there may be a need to periodically adjust the recognized tax positions and tax benefits. These periodic adjustments may have a material impact on the consolidated statements of operations. k) Stock-based Compensation The Company accounts for all stock-based payments and awards under the fair value method. Stock-based payments to non-employees are measured at the fair value of the consideration received, or the fair value of the equity instruments issued, or liabilities incurred, whichever is more reliably measurable. The fair value of stock-based payments to non-employees is periodically re-measured until the counterparty performance is complete, and any change therein is recognized over the vesting period of the award and in the same manner as if the Company had paid cash instead of paying with or using equity based instruments. Compensation costs for stock-based payments with graded vesting are recognized on a straight-line basis. The cost of the stock-based payments to non-employees that are fully vested and non-forfeitable at the grant date is measured and recognized at that date, unless there is a contractual term for services in which case such compensation would be amortized over the contractual term. The Company accounts for the granting of share purchase options to employees using the fair value method whereby all awards to employees will be recorded at fair value on the date of the grant. The fair value of all share purchase options are expensed over their vesting period with a corresponding increase to additional paid-in capital. The Company uses the Black-Scholes option valuation model to calculate the fair value of share purchase options at the date of the grant. Option pricing models require the input of highly subjective assumptions, including the expected price volatility. Changes in these assumptions can materially affect the fair value estimates. l) Fair Value Measurements The fair value hierarchy under GAAP is based on three levels of inputs, of which the first two are considered observable and the last unobservable, that may be used to measure fair value which are the following: Level 1 - quoted prices (unadjusted) in active markets for identical assets or liabilities; Level 2 - observable inputs other than Level 1, quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets and liabilities in markets that are not active, and model-derived prices whose inputs are observable or whose significant value drivers are observable; and Level 3 - assets and liabilities whose significant value drivers are unobservable by little or no market activity and that are significant to the fair value of the assets or liabilities. The book value of cash and cash equivalents and accounts payable and accrued liabilities approximate their fair values due to the short term maturity of those instruments. At September 30, 2017 and 2016, the Company did not have any Level 3 assets or liabilities. m) Derivative Liabilities The Company evaluates its financial instruments and other contracts to determine if those contracts or embedded components of those contracts qualify as derivatives to be separately accounted for in accordance with ASC 815. The result of this accounting treatment is that the fair value of the embedded derivative is marked- to-market at each balance sheet date and recorded as a liability and the change in fair value is recorded in the consolidated statements of operations as other income or expense. Upon conversion or exercise of a derivative instrument, the instrument is marked to fair value at the conversion date and then that fair value is reclassified to equity. The classification of derivative instruments, including whether such instruments should be recorded as liabilities or as equity, is re-assessed at the end of each reporting period. Derivative instruments that become subject to reclassification are reclassified at the fair value of the instrument on the reclassification date. Derivative instrument liabilities will be classified in the balance sheet as current or non-current based on whether or not settlement of the derivative instrument is expected within 12 months of the balance sheet date. From time to time, certain of the Company’s embedded conversion features on debt and outstanding warrants have been treated as derivative liabilities for accounting purposes under ASC 815 due to insufficient authorized shares to fully settle conversion features of the instruments if exercised. In this case, the Company utilized the latest inception date sequencing method to reclassify outstanding instruments as derivative instruments. These contracts were recognized at fair value with changes in fair value recognized in earnings until such time as the conditions giving rise to such derivative liability classification were settled. These derivative instruments did not trade in an active securities market. The Company used a binomial option pricing model to value derivative liabilities. This model used Level 3 inputs in the fair value hierarchy established by ASC 820 Fair Value Measurement. The Company did not have any derivative instruments outstanding as at September 30, 2017 and 2016. n) Recent Accounting Pronouncements Recently Adopted Accounting Pronouncements In June 2014, the FASB issued ASU No. 2014-12, Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period (“ASU 2014-12”). ASU 2014-12 requires that a performance target that affects vesting, and that could be achieved after the requisite service period, be treated as a performance condition. As such, the performance target should not be reflected in estimating the grant date fair value of the award. This update further clarifies that compensation cost should be recognized in the period in which it becomes probable that the performance target will be achieved and should represent the compensation cost attributable to the period(s) for which the requisite service has already been rendered. The Company adopted this standard on October 1, 2016. The adoption of this standard did not have any effect on its financial condition, results of operations and cash flows. In August 2014, the FASB issued ASU No. 2014-15, Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern (“ASU 2014-15”). ASU 2014-15 explicitly requires management to assess an entity’s ability to continue as a going concern, and to provide related footnote disclosure in certain circumstances. The Company adopted this standard on October 1, 2016. The adoption of this standard did not have any effect on its financial condition, results of operations and cash flows. In April 2015, the Financial Accounting Standards Board (FASB), issued the Accounting Standards Update 2015-03, Interest - Imputation of Interest (Subtopic 835-30) - Simplifying the Presentation of Debt Issuance Costs, that requires debt issuance costs related to a recognized debt liability to be presented in the balance sheet as a direct deduction from the debt liability rather than as an asset. Upon adoption, an entity must apply the new guidance retrospectively to all prior periods presented in the financial statements. The Company adopted this standard on October 1, 2016. The adoption of this standard did not have any effect on its financial condition, results of operations and cash flows. Recent Accounting Pronouncements Not Yet Adopted In May 2014, the FASB and the International Accounting Standards Board (IASB) issued a converged standard on revenue recognition from contracts with customers, ASU 2014-09 (Topic 606 and IFRS 15). This standard will supersede nearly all existing revenue recognition guidance. ASU 2014-09 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2017. The adoption of this standard is not expected to have a material impact for any period presented and the Company will apply this standard to all future revenues. In November 2015, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update No. 2015-17 “Income Taxes: Balance Sheet Classification of Deferred Taxes (“ASU 2015-17”). ASU 2015-17 eliminates the requirement to bifurcate deferred taxes between current and non-current on the balance sheet and requires that deferred tax liabilities and assets be classified as noncurrent on the balance sheet. ASU 2015-17 is effective for public entities in fiscal years beginning after December 15, 2016, and for interim periods within those fiscal years. The amendments for ASU-2015-17 can be applied retrospectively or prospectively and early adoption is permitted. The adoption of this standard is not expected to have a material impact for any period presented. In February 2016, the FASB issued Accounting Standards Update No. 2016-02, Leases In March 2016, the FASB issued ASC 2016-09, “ Compensation – Stock Compensation (Topic 718) – Improvements to Employee Share-Based Payment Accounting In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230), Classification of Certain Cash Receipts and Cash Payments (“ASU 2016-15”). ASU 2016-15 reduces the existing diversity in practice in financial reporting across all industries by clarifying certain existing principles in ASC 230, Statement of Cash Flows, (“ASC 230”) including providing additional guidance on how and what an entity should consider in determining the classification of certain cash flows. In addition, in November 2016, the FASB issued ASU 2016-18, Statement of Cash Flows (Topic 230), Restricted Cash (“ASU 2016-18”). ASU 2016-18 clarifies certain existing principles in ASC 230, including providing additional guidance related to transfers between cash and restricted cash and how entities present, in their statement of cash flows, the cash receipts and cash payments that directly affect the restricted cash accounts. This amendment is effective for the Company beginning on October 1, 2018. Early adoption is permitted. The adoption of ASU 2016-15 and ASU 2016-18 will modify the Company’s current disclosures and reclassifications within the consolidated statement of cash flows but they are not expected to have a material effect on the Company’s consolidated financial statement In May 2017, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2017-09, “Compensation–Stock Compensation (Topic 718): Scope of Modification Accounting,” clarifying when a change to the terms or conditions of a share-based payment award must be accounted for as a modification. The new guidance requires modification accounting if the fair value, vesting condition or the classification of the award is not the same immediately before and after a change to the terms and conditions of the award. The new guidance is effective for the Company on a prospective basis beginning on October 1, 2018, with early adoption permitted. The Company is currently evaluating the impact this guidance will have on its financial condition, results of operations and cash flows. Other than noted above, the Company does not expect the adoption of recently issued accounting pronouncements to have a significant impact on its results of operations, financial position or cash flow. |
Other Income
Other Income | 12 Months Ended |
Sep. 30, 2017 | |
Component of Operating Income [Abstract] | |
Other Income | Note 3 Other Income Grant Income On June 19, 2015, the Company was awarded grant funding in the amount of $286,455. The grant has been received in exchange for a commitment to provide research and development for preclinical validation of Sigma-1 receptor agonism as potential treatment for Parkinson’s disease. The grant income was deferred and amortized to other income over the related commitment period as the related research and development expenditures were incurred. During the year ended September 30, 2017, the Company recognized $140,942 (2016: $141,195; 2015: $Nil) of this grant on its statement of operations within grant income. Research and development tax incentive During the year ended September 30, 2017, the Company received other income of $2,022,902 (2016: $571,093, 2015: $Nil) in respect of a research and development incentive program offered by the Australian government. |
Lincoln Park Purchase Agreement
Lincoln Park Purchase Agreement | 12 Months Ended |
Sep. 30, 2017 | |
Business Combinations [Abstract] | |
Lincoln Park Purchase Agreement | Note 4 Lincoln Park Purchase Agreement On October 21, 2015, the Company entered into a $50,000,000 purchase agreement (the “2015 Purchase Agreement”) with Lincoln Park Capital Fund, LLC (“Lincoln Park”), pursuant to which the Company may sell and issue to Lincoln Park, and Lincoln Park is obligated to purchase, up to $50,000,000 in value of its shares of common stock from time to time over a 36-month period. In connection with the Purchase Agreement, the Company also entered into a registration rights agreement with Lincoln Park whereby the Company agreed to file registration statements with the Securities and Exchange Commission covering the shares of the Company’s common stock that may be issued to Lincoln Park under the Purchase Agreement. The Company may direct Lincoln Park, at its sole discretion, and subject to certain conditions, to purchase up to 50,000 shares of common stock on any business day, provided that at least one business day has passed since the most recent purchase. The amount of a purchase may be increased under certain circumstances provided, however that Lincoln Park’s committed obligation under any single purchase shall not exceed $2,000,000. The purchase price of shares of common stock related to the future funding will be based on the then prevailing market prices of such shares at the time of sales as described in the 2015 Purchase Agreement. In consideration for entering into the 2015 Purchase Agreement, the Company issued to Lincoln Park 179,598 shares of common stock as a commitment fee and agreed to issue up to 89,799 shares pro rata, when and if, Lincoln Park purchases at the Company’s discretion the $50,000,000 aggregate commitment. During the year ended September 30, 2017, the Company issued to Lincoln Park an aggregate of 7,109,956 (2016: 452,437; 2015: Nil) shares of common stock under the Purchase Agreement, including 7,060,976 (2016: 450,000; 2015: Nil) shares of common stock for an aggregate purchase price of $27,270,674 (2016: $1,357,800; 2015: $Nil) and 48,980 (2016: 2,437; 2015: Nil) commitment shares. At September 30, 2017, an amount of $21,371,526 remained available under the 2015 Purchase Agreement. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Sep. 30, 2017 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Note 5 Related Party Transactions As at September 30, 2017, included in accounts payable and accrued liabilities was $34,144 (2016: $59,264) owing to directors and officers of the Company for director fees and reimbursable expenses, and a former director and officer of the Company for unpaid fees. |
Commitments
Commitments | 12 Months Ended |
Sep. 30, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments | Note 6 Commitments a) Lease Commitment The Company is committed to lease payments as follows: Fiscal year ending September 30, 2018 $ 115,189 2019 57,594 $ 172,783 b) Litigation The Company is subject to claims and legal proceedings that arise in the ordinary course of business. Such matters are inherently uncertain, and there can be no guarantee that the outcome of any such matter will be decided favorably to the Company or that the resolution of any such matter will not have a material adverse effect upon the Company’s consolidated financial statements. The Company does not believe that any of such pending claims and legal proceedings will have a material adverse effect on its consolidated financial statements. c) Share Purchase Warrants A summary of the status of the Company’s outstanding share purchase warrants is presented below: Number of Shares Weighted Average Exercise Price Balance, October 1, 2015 4,272,890 $ 2.11 Exercised (2,463,581 ) $ 1.67 Balance, September 30, 2016 1,809,309 $ 2.70 Exercised (200,000 ) $ 3.00 Balance,September 30, 2017 1,609,309 $ 2.66 At September 30, 2017, the Company had share purchase warrants outstanding of 1,609,309, with a weighted average exercise price of $2.66 as follows: Number Exercise Price Expiry Date 1,262,180 $ 3.00 July 5, 2018 30,000 $ 4.00 February 24, 2019 277,127 $ 1.20 March 13, 2019 1,252 $ 1.68 March 13, 2019 31,250 $ 1.24 May 31, 2019 7,500 $ 1.04 May 31, 2019 1,609,309 All of the warrants expiring on July 5, 2018 contain a contingent call provision whereby the Company may have the option to call for cancellation of all or any portion of the warrants for consideration equal to $0.001 per share, provided the quoted market price of the Company’s common stock exceeds $6.00 for a period of twenty consecutive trading days, subject to certain minimum volume restrictions and other restrictions as provided in the warrant agreements. During the year ended September 30, 2017, 200,000 share purchase warrants were cashless exercised, resulting in the issuance of 52,562 shares of common stock. During the year ended September 30, 2016, the Company issued 1,979,246 shares of common stock pursuant to the exercise of 2,421,894 share purchase warrants on a cashless basis, and 41,687 shares of common stock pursuant to the exercise of warrants for cash. d) Stock–based Compensation Plan 2015 Stock Option Plan On September 18, 2015, the Company’s board of directors approved a 2015 Omnibus Incentive Plan (the “2015 Plan”), which provides for the grant of stock options and restricted stock awards to directors, officers, employees and consultants of the Company. The maximum number of our common shares reserved for issue under the plan is 6,050,553 shares subject to adjustment in the event of a change of the Company’s capitalization. As a result of the adoption of the 2015 Plan, no further option awards will be granted under any previously existing stock option plan. Stock option awards previously granted under previously existing stock option plans remain outstanding in accordance with their terms. The 2015 Plan is administered by the board of directors, except that it may, in its discretion, delegate such responsibility to a committee of such board. The exercise price will be determined by the board of directors at the time of grant shall be at least equal to the fair market value on such date. If the grantee is a 10% stockholder on the grant date, then the exercise price shall not be less than 110% of fair market value of the Company’s shares of common stock on the grant date. Stock options may be granted under the 2015 Plan for an exercise period of up to ten years from the date of grant of the option or such lesser periods as may be determined by the board, subject to earlier termination in accordance with the terms of the 2015 Plan. A summary of the status of Company’s outstanding stock purchase options is presented below: Number of Shares Weighted Average Exercise Price Weighted Average Grant Date Fair Value Outstanding at October 1, 2015 1,822,500 $ 2.00 Granted 2,401,500 5.22 $ 4.38 Expired (25,000 ) 14.68 Outstanding at September 30, 2016 4,199,000 3.76 Granted 1,107,500 5.51 $ 5.44 Forfeited (214,470 ) 4.06 Outstanding at September 30, 2017 5,092,030 $ 4.13 Exercisable at September 30, 2017 3,326,223 $ 3.10 Exercisable at September 30, 2016 2,290,716 $ 2.42 At September 30, 2017, the following stock options were outstanding: Number of Shares Aggregate Remaining Number Exercise Intrinsic Contractual Total Vested Price Expiry Date Value Life (yrs) 500,000 500,000 $ 1.60 July 5, 2023 $ 1,270,000 5.76 75,000 75,000 $ 1.20 May 7, 2024 220,500 6.60 125,000 93,750 $ 1.32 May 8, 2024 352,500 6.60 718,750 718,750 $ 0.92 April 2, 2025 2,314,375 7.50 29,167 29,167 $ 1.44 June 8, 2025 78,751 7.69 50,000 33,333 $ 1.76 June 15, 2025 119,000 7.71 266,250 199,688 $ 5.04 September 18, 2025 — 7.97 1,500 1,500 $ 5.64 September 30, 2025 — 8.00 31,250 20,833 $ 5.68 October 2, 2025 — 8.01 25,000 16,666 $ 8.98 October 16, 2025 — 8.04 1,500 1,500 $ 5.57 December 31, 2025 — 8.25 1,500 1,500 $ 4.90 March 31, 2026 — 8.50 1,500 1,500 $ 5.66 April 27, 2026 — 8.57 19,697 19,697 $ 4.09 May 18, 2026 985 8.63 1,500 1,500 $ 6.11 June 30, 2026 — 8.75 379,625 126,542 $ 6.26 July 5, 2026 — 8.76 861,429 287,143 $ 7.06 July 18, 2026 — 8.80 13,333 13,333 $ 3.06 September 7, 2026 14,400 8.94 1,006,696 1,006,696 $ 3.28 September 22, 2026 865,759 8.98 69,166 29,164 $ 3.63 October 3, 2026 35,275 9.01 15,000 5,000 $ 4.35 December 9, 2026 — 9.19 50,000 — $ 5.39 February 7, 2027 — 9.36 40,000 10,000 $ 5.26 February 17, 2027 — 9.38 781,667 131,669 $ 5.92 May 12, 2027 — 9.61 12,500 1,042 $ 3.42 August 9, 2027 9,000 9.86 15,000 1,250 $ 4.33 September 19, 2027 — 9.97 5,092,030 3,326,223 $ 5,280,544 The aggregate intrinsic value is calculated as the difference between the exercise price of the underlying awards and the quoted market price of the Company’s stock for the options that were in-the-money at September 30, 2017. The Company recognized stock based compensation expense of $4,135,570 during the year ended September 30, 2017 (2016: $4,452,267; 2015: $413,979) in connection with the issuance and vesting of stock options in exchange for services, and $Nil (2016: $610,000; 2015 $1,220,000), in connection with the vesting of restricted stock in exchange for services. These amounts have been included in general and administrative expenses and research and development expenses on the Company’s statement of operations as follows: 2017 2016 2015 General and administrative $ 2,017,199 $ 3,208,220 $ 1,633,979 Research and development 2,118,371 1,854,047 — Total share based compensation $ 4,135,570 $ 5,062,267 $ 1,633,979 An amount of approximately $7,964,225 in stock based compensation is expected to be recorded over the remaining term of such options through June 30, 2020. The fair value of each option award is estimated on the date of grant using the Black Scholes option pricing model based on the following weighted average assumptions: 2017 2016 2015 Risk-free interest rate 2.11 % 1.28 % 1.63 % Expected life of options (years) 6.86 5.88 6.30 Annualized volatility 111.58 % 114.75 % 98.41 Dividend rate 0.00 % 0.00 % 0.00 % The fair value of restricted stock compensation charges recognized during the years ended September 30, 2016 and 2015 was determined with reference to the quoted market price of the Company’s shares on the commitment date. |
Income Taxes
Income Taxes | 12 Months Ended |
Sep. 30, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 7 Income Taxes The tax effects of the temporary differences that give rise to the Company’s estimated deferred tax assets and liabilities are as follows: 2017 2016 2015 Assumed Tax rate 34 % 34 % 34 % Net operating loss carryforwards $ 14,240,000 $ 11,223,000 $ 9,177,000 Research and development tax credits 1,344,000 1,036,000 794,000 Foreign exchange (25,000 ) (25,000 ) (10,000 ) Unpaid charges 28,000 152,000 832,000 Intangible asset costs 51,000 57,000 64,000 Stock-based compensation 3,394,000 2,004,000 581,000 Valuation allowance for deferred tax assets (19,032,000 ) (14,447,000 ) (11,438,000 ) Net deferred tax assets $ — $ — $ — The provision for income taxes differ from the amount established using the statutory income tax rate as follows: 2017 2016 2015 Income benefit at statutory rate of 34% $ (4,577,000 ) $ (5,010,000 ) $ (4,117,000 ) Foreign income taxed at other rates 68,000 132,000 80,000 Permanent differences Debt extinguishment — — (29,000 ) Mark-to-market deriative liability adjustment — — 193,000 Non-deductible finance and accretion expenses — 5,000 1,511,000 Non-deductible compensation costs — 738,000 Other permanent differences 2,000 — (5,000 ) Research and development tax credit (23,000 ) 628,000 502,000 Expiry of foreign net operating loss carryforwards — 333,000 — Adjustment and true up to prior years’ tax provision (55,000 ) 176,000 100,000 Effect of foreign exchange and other — (11,000 ) — Change in valuation allowance related to current year provision 4,585,000 3,009,000 1,765,000 Income Tax Recovery $ — $ — $ — As of September 30, 2017, the Company had net operating loss carry-forwards of approximately $41,000,000 (2016: $33,000,000; 2015: $25,000,000) in the United States, approximately $850,000 (2016: $250,000; 2015: $Nil) in Australia and approximately $13,000 (2016: $Nil) in Germany, available to offset future taxable income in those jurisdictions. The carry-forwards will begin to expire in 2027. The Company evaluates its valuation allowance requirements based on projected future operations. When circumstances change and this causes a change in management’s judgment about the recoverability of deferred tax assets, the impact of the change on the valuation allowance is reflected in current income. Because management of the Company does not currently believe that it is more likely than not that the Company will receive the benefit of these assets, a valuation allowance equal to the deferred tax asset has been established at September 30, 2017, 2016 and 2015. Uncertain Tax Positions The Company files income tax returns in the U.S. federal jurisdiction and various state and foreign jurisdictions. The Company’s tax returns are subject to tax examinations by U.S. federal and state tax authorities, or examinations by foreign tax authorities until the respective statutes of limitation expire. The Company is subject to tax examinations by tax authorities for all taxation years commencing on or after 2009. Certain of the Company’s net operating loss carryforwards in the United States may be subject to limitations by Section 382 of the Internal Revenue Code with respect to the amount utilizable each year. This limitation reduces the Company’s ability to utilize net operating loss carry-forwards, under certain circumstances. The Company completed a Section 382 analysis through the fiscal year ended September 30, 2017 and currently does not believe Section 382 will apply to limit the utilization of these tax losses. |
Supplemental Cash Flow Informat
Supplemental Cash Flow Information | 12 Months Ended |
Sep. 30, 2017 | |
Supplemental Cash Flow Elements [Abstract] | |
Supplemental Cash Flow Information | Note 8 Supplemental Cash Flow Information Investing and financing activities that do not have a direct impact on current cash flows are excluded from the statement of cash flows. During the year ended September 30, 2016; i) the Company issued 6,162 shares of common stock upon conversion of $6,162 in principal amount of convertible debentures at a conversion price of $1.00 per share and 167,415 shares of common stock pursuant to the application of an incorrect conversion price for conversion notices received during the year ended September 30, 2015; During the year ended September 30, 2015; i) the Company issued 7,272,487 shares of common stock and an additional 167,415 shares of common stock became issuable upon conversion of $7,439,900 in principal amount of convertible debentures at a conversion price of $1.00 per share; ii) the Company reclassified an amount of $4,482,000 into equity upon modification of the terms of certain derivative instruments. iii) the Company adjusted the price of 658,612 shares of common stock from $2.00 to $1.00 per share pursuant to an anti-dilution provision contained in private placement subscription agreements dated May 31, 2012. Consequently, the Company issued 658,612 shares of common stock for no consideration. |
Summary of Significant Accoun16
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Sep. 30, 2017 | |
Accounting Policies [Abstract] | |
Use of Estimates | a) Use of Estimates The preparation of financial statements in accordance with United States generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses in the reporting period. The Company regularly evaluates estimates and assumptions related to deferred income tax asset valuations, asset impairment, conversion features embedded in convertible notes payable, derivative valuations, stock based compensation and loss contingencies. The Company bases its estimates and assumptions on current facts, historical experience and various other factors that it believes to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities and the accrual of costs and expenses that are not readily apparent from other sources. The actual results experienced by the Company may differ materially and adversely from the Company’s estimates. To the extent there are material differences between the estimates and the actual results, future results of operations will be affected. |
Principles of Consolidation | b) Principles of Consolidation These consolidated financial statements include the accounts of Anavex Life Sciences Corp. and its wholly-owned subsidiaries, Anavex Australia Pty Limited, a company incorporated under the laws of Australia, Anavex Germany GmbH, a company incorporated under the laws of Germany, and Anavex Canada Ltd., a company incorporated under the laws of the Province of Ontario, Canada. All inter-company transactions and balances have been eliminated. |
Cash and equivalents | c) Cash and equivalents The Company considers only those investments which are highly liquid, readily convertible to cash and that mature within three months from the date of purchase to be cash equivalents. |
Research and Development Incentive Income | d) Research and Development Incentive Income The Company is eligible to obtain a research and development tax credit from the Australian Tax Authority (the “ATO”) for certain research and development activities undertaken in Australia. The tax incentive is available on the basis of specific criteria with which the Company must comply. Although the tax incentive is administered through the ATO, the Company has accounted for the tax incentive outside of the scope of ASC Topic 740, Income Taxes since the incentive is not linked to the Company’s income tax liability and can be realized regardless of whether the Company has generated taxable income in Australia. The Company recognizes as other income the amount received for qualified expenses in the period they are received. |
Basic and Diluted Loss per Share | e) Basic and Diluted Loss per Share Basic loss per common share is computed by dividing net loss available to common stockholders by the weighted average number of common shares outstanding during the period. Diluted loss per common share is computed similar to basic loss per common share except that the denominator is increased to include the weighted average number of all potentially dilutive securities convertible into shares of common stock that were outstanding during the period. As of September 30, 2017, loss per share excludes 6,711,339 (2016 – 6,008,309) potentially dilutive common shares related to outstanding options and warrants, as their effect was anti-dilutive. |
Financial Instruments | f) Financial Instruments The carrying value of the Company’s financial instruments, consisting of cash and equivalents and accounts payable and accrued liabilities approximate their fair value due to the short-term maturity of such instruments. Unless otherwise noted, it is management’s opinion that the Company is not exposed to significant interest, currency or credit risks arising from these financial instruments. |
Foreign Currency Translation | g) Foreign Currency Translation The functional currency of the Company is the US dollar. Monetary items denominated in a foreign currency are translated into US dollars at exchange rates prevailing at the balance sheet date and non-monetary items are translated at exchange rates prevailing when the assets were acquired or obligations incurred. Foreign currency denominated expense items are translated at exchange rates prevailing at the transaction date. Unrealized gains or losses arising from the translations are credited or charged to income in the period in which they occur. The Company has determined that the functional currency of Anavex Australia Pty Limited is the US dollar. The Company has determined that the functional currency of Anavex Germany GmbH is the US dollar. The functional currency of Anavex Canada Ltd. is the Canadian dollar. |
Research and Development Expenses | h) Research and Development Expenses Research and development costs are expensed as incurred. These expenses are comprised of the costs of the Company’s proprietary research and development efforts, including salaries, facilities costs, overhead costs and other related expenses, as well as costs incurred in connection with third-party collaboration efforts. Milestone payments made by the Company to third parties are expensed when the specific milestone has been achieved. In addition, the Company incurs expenses in respect of the acquisition of intellectual property relating to patents and trademarks. The probability of success and length of time to develop commercial applications of the drugs subject to the acquired patents and trademarks is difficult to determine and numerous risks and uncertainties exist with respect to the timely completion of the development projects. There is no assurance the acquired patents and trademarks will ever be successfully commercialized. Due to these risks and uncertainties, the acquisition of patents and trademarks does not meet the definition of an asset and thus are expensed as incurred within general and administrative expenses. |
Grant Income | i) Grant Income Research and development incentive income is recognized when the research and development activities have been undertaken and the Company has completed its assessment of whether such activities meet the relevant qualifying criteria. The Company recognizes such income at the fair value of the grant when it is received, and all substantive conditions have been satisfied. Grants received from government and other agencies in advance of the specific research and development costs to which they relate are deferred and recognized in the consolidated statement of operations in the period they are earned and when the related research and development costs are incurred. |
Income Taxes | j) Income Taxes The Company has adopted the provisions of FASB ASC 740 “Income Taxes” (“ASC 740”) which requires the asset and liability method of accounting for income taxes. Under the asset and liability method, deferred tax assets and liabilities are recognized for the future tax consequences attributable to temporary differences between the financial statements carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The Company follows the provisions of ASC 740 regarding accounting for uncertainty in income taxes. The Company initially recognizes tax positions in the financial statements when it is more likely than not the position will be sustained upon examination by the tax authorities. Such tax positions are initially and subsequently measured as the largest amount of tax benefit that is greater than 50% likely of being realized upon ultimate settlement with the tax authority assuming full knowledge of the position and all relevant facts. Application requires numerous estimates based on available information. The Company considers many factors when evaluating and estimating its tax positions and tax benefits, and its recognized tax positions and tax benefits may not accurately anticipate actual outcomes. As additional information is obtained, there may be a need to periodically adjust the recognized tax positions and tax benefits. These periodic adjustments may have a material impact on the consolidated statements of operations. |
Stock-based Compensation | k) Stock-based Compensation The Company accounts for all stock-based payments and awards under the fair value method. Stock-based payments to non-employees are measured at the fair value of the consideration received, or the fair value of the equity instruments issued, or liabilities incurred, whichever is more reliably measurable. The fair value of stock-based payments to non-employees is periodically re-measured until the counterparty performance is complete, and any change therein is recognized over the vesting period of the award and in the same manner as if the Company had paid cash instead of paying with or using equity based instruments. Compensation costs for stock-based payments with graded vesting are recognized on a straight-line basis. The cost of the stock-based payments to non-employees that are fully vested and non-forfeitable at the grant date is measured and recognized at that date, unless there is a contractual term for services in which case such compensation would be amortized over the contractual term. The Company accounts for the granting of share purchase options to employees using the fair value method whereby all awards to employees will be recorded at fair value on the date of the grant. The fair value of all share purchase options are expensed over their vesting period with a corresponding increase to additional paid-in capital. The Company uses the Black-Scholes option valuation model to calculate the fair value of share purchase options at the date of the grant. Option pricing models require the input of highly subjective assumptions, including the expected price volatility. Changes in these assumptions can materially affect the fair value estimates. |
Fair Value Measurements | l) Fair Value Measurements The fair value hierarchy under GAAP is based on three levels of inputs, of which the first two are considered observable and the last unobservable, that may be used to measure fair value which are the following: Level 1 - quoted prices (unadjusted) in active markets for identical assets or liabilities; Level 2 - observable inputs other than Level 1, quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets and liabilities in markets that are not active, and model-derived prices whose inputs are observable or whose significant value drivers are observable; and Level 3 - assets and liabilities whose significant value drivers are unobservable by little or no market activity and that are significant to the fair value of the assets or liabilities. The book value of cash and cash equivalents and accounts payable and accrued liabilities approximate their fair values due to the short term maturity of those instruments. At September 30, 2017 and 2016, the Company did not have any Level 3 assets or liabilities. |
Derivative Liabilities | m) Derivative Liabilities The Company evaluates its financial instruments and other contracts to determine if those contracts or embedded components of those contracts qualify as derivatives to be separately accounted for in accordance with ASC 815. The result of this accounting treatment is that the fair value of the embedded derivative is marked- to-market at each balance sheet date and recorded as a liability and the change in fair value is recorded in the consolidated statements of operations as other income or expense. Upon conversion or exercise of a derivative instrument, the instrument is marked to fair value at the conversion date and then that fair value is reclassified to equity. The classification of derivative instruments, including whether such instruments should be recorded as liabilities or as equity, is re-assessed at the end of each reporting period. Derivative instruments that become subject to reclassification are reclassified at the fair value of the instrument on the reclassification date. Derivative instrument liabilities will be classified in the balance sheet as current or non-current based on whether or not settlement of the derivative instrument is expected within 12 months of the balance sheet date. From time to time, certain of the Company’s embedded conversion features on debt and outstanding warrants have been treated as derivative liabilities for accounting purposes under ASC 815 due to insufficient authorized shares to fully settle conversion features of the instruments if exercised. In this case, the Company utilized the latest inception date sequencing method to reclassify outstanding instruments as derivative instruments. These contracts were recognized at fair value with changes in fair value recognized in earnings until such time as the conditions giving rise to such derivative liability classification were settled. These derivative instruments did not trade in an active securities market. The Company used a binomial option pricing model to value derivative liabilities. This model used Level 3 inputs in the fair value hierarchy established by ASC 820 Fair Value Measurement. The Company did not have any derivative instruments outstanding as at September 30, 2017 and 2016 |
Recent Accounting Pronouncements | n) Recent Accounting Pronouncements Recently Adopted Accounting Pronouncements In June 2014, the FASB issued ASU No. 2014-12, Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period (“ASU 2014-12”). ASU 2014-12 requires that a performance target that affects vesting, and that could be achieved after the requisite service period, be treated as a performance condition. As such, the performance target should not be reflected in estimating the grant date fair value of the award. This update further clarifies that compensation cost should be recognized in the period in which it becomes probable that the performance target will be achieved and should represent the compensation cost attributable to the period(s) for which the requisite service has already been rendered. The Company adopted this standard on October 1, 2016. The adoption of this standard did not have any effect on its financial condition, results of operations and cash flows. In August 2014, the FASB issued ASU No. 2014-15, Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern (“ASU 2014-15”). ASU 2014-15 explicitly requires management to assess an entity’s ability to continue as a going concern, and to provide related footnote disclosure in certain circumstances. The Company adopted this standard on October 1, 2016. The adoption of this standard did not have any effect on its financial condition, results of operations and cash flows. In April 2015, the Financial Accounting Standards Board (FASB), issued the Accounting Standards Update 2015-03, Interest - Imputation of Interest (Subtopic 835-30) - Simplifying the Presentation of Debt Issuance Costs, that requires debt issuance costs related to a recognized debt liability to be presented in the balance sheet as a direct deduction from the debt liability rather than as an asset. Upon adoption, an entity must apply the new guidance retrospectively to all prior periods presented in the financial statements. The Company adopted this standard on October 1, 2016. The adoption of this standard did not have any effect on its financial condition, results of operations and cash flows. Recent Accounting Pronouncements Not Yet Adopted In May 2014, the FASB and the International Accounting Standards Board (IASB) issued a converged standard on revenue recognition from contracts with customers, ASU 2014-09 (Topic 606 and IFRS 15). This standard will supersede nearly all existing revenue recognition guidance. ASU 2014-09 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2017. The adoption of this standard is not expected to have a material impact for any period presented and the Company will apply this standard to all future revenues. In November 2015, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update No. 2015-17 “Income Taxes: Balance Sheet Classification of Deferred Taxes (“ASU 2015-17”). ASU 2015-17 eliminates the requirement to bifurcate deferred taxes between current and non-current on the balance sheet and requires that deferred tax liabilities and assets be classified as noncurrent on the balance sheet. ASU 2015-17 is effective for public entities in fiscal years beginning after December 15, 2016, and for interim periods within those fiscal years. The amendments for ASU-2015-17 can be applied retrospectively or prospectively and early adoption is permitted. The adoption of this standard is not expected to have a material impact for any period presented. In February 2016, the FASB issued Accounting Standards Update No. 2016-02, Leases In March 2016, the FASB issued ASC 2016-09, “ Compensation – Stock Compensation (Topic 718) – Improvements to Employee Share-Based Payment Accounting In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230), Classification of Certain Cash Receipts and Cash Payments (“ASU 2016-15”). ASU 2016-15 reduces the existing diversity in practice in financial reporting across all industries by clarifying certain existing principles in ASC 230, Statement of Cash Flows, (“ASC 230”) including providing additional guidance on how and what an entity should consider in determining the classification of certain cash flows. In addition, in November 2016, the FASB issued ASU 2016-18, Statement of Cash Flows (Topic 230), Restricted Cash (“ASU 2016-18”). ASU 2016-18 clarifies certain existing principles in ASC 230, including providing additional guidance related to transfers between cash and restricted cash and how entities present, in their statement of cash flows, the cash receipts and cash payments that directly affect the restricted cash accounts. This amendment is effective for the Company beginning on October 1, 2018. Early adoption is permitted. The adoption of ASU 2016-15 and ASU 2016-18 will modify the Company’s current disclosures and reclassifications within the consolidated statement of cash flows but they are not expected to have a material effect on the Company’s consolidated financial statement In May 2017, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2017-09, “Compensation–Stock Compensation (Topic 718): Scope of Modification Accounting,” clarifying when a change to the terms or conditions of a share-based payment award must be accounted for as a modification. The new guidance requires modification accounting if the fair value, vesting condition or the classification of the award is not the same immediately before and after a change to the terms and conditions of the award. The new guidance is effective for the Company on a prospective basis beginning on October 1, 2018, with early adoption permitted. The Company is currently evaluating the impact this guidance will have on its financial condition, results of operations and cash flows. Other than noted above, the Company does not expect the adoption of recently issued accounting pronouncements to have a significant impact on its results of operations, financial position or cash flow. |
Commitments (Tables)
Commitments (Tables) | 12 Months Ended |
Sep. 30, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of lease payments | The Company is committed to lease payments as follows: Fiscal year ending September 30, 2018 $ 115,189 2019 57,594 $ 172,783 |
Schedule of purchase warrants outstanding | A summary of the status of the Company’s outstanding share purchase warrants is presented below: Number of Shares Weighted Average Exercise Price Balance, October 1, 2015 4,272,890 $ 2.11 Exercised (2,463,581 ) $ 1.67 Balance, September 30, 2016 1,809,309 $ 2.70 Exercised (200,000 ) $ 3.00 Balance,September 30, 2017 1,609,309 $ 2.66 |
Schedule of exercisable share purchase warrants outstanding | At September 30, 2017, the Company had share purchase warrants outstanding of 1,609,309, with a weighted average exercise price of $2.66 as follows:\ Number Exercise Price Expiry Date 1,262,180 $ 3.00 July 5, 2018 30,000 $ 4.00 February 24, 2019 277,127 $ 1.20 March 13, 2019 1,252 $ 1.68 March 13, 2019 31,250 $ 1.24 May 31, 2019 7,500 $ 1.04 May 31, 2019 1,609,309 |
Schedule of outstanding stock purchase options | A summary of the status of Company’s outstanding stock purchase options is presented below: Number of Weighted Weighted Outstanding at October 1, 2015 1,822,500 $ 2.00 Granted 2,401,500 5.22 $ 4.38 Expired (25,000 ) 14.68 Outstanding at September 30, 2016 4,199,000 3.76 Granted 1,107,500 5.51 $ 5.44 Forfeited (214,470 ) 4.06 Outstanding at September 30, 2017 5,092,030 $ 4.13 Exercisable at September 30, 2017 3,326,223 $ 3.10 Exercisable at September 30, 2016 2,290,716 $ 2.42 |
Schedule of stock options outstanding | At September 30, 2017, the following stock options were outstanding: Number of Shares Aggregate Remaining Number Exercise Intrinsic Contractual Total Vested Price Expiry Date Value Life (yrs) 500,000 500,000 $ 1.60 July 5, 2023 $ 1,270,000 5.76 75,000 75,000 $ 1.20 May 7, 2024 220,500 6.60 125,000 93,750 $ 1.32 May 8, 2024 352,500 6.60 718,750 718,750 $ 0.92 April 2, 2025 2,314,375 7.50 29,167 29,167 $ 1.44 June 8, 2025 78,751 7.69 50,000 33,333 $ 1.76 June 15, 2025 119,000 7.71 266,250 199,688 $ 5.04 September 18, 2025 — 7.97 1,500 1,500 $ 5.64 September 30, 2025 — 8.00 31,250 20,833 $ 5.68 October 2, 2025 — 8.01 25,000 16,666 $ 8.98 October 16, 2025 — 8.04 1,500 1,500 $ 5.57 December 31, 2025 — 8.25 1,500 1,500 $ 4.90 March 31, 2026 — 8.50 1,500 1,500 $ 5.66 April 27, 2026 — 8.57 19,697 19,697 $ 4.09 May 18, 2026 985 8.63 1,500 1,500 $ 6.11 June 30, 2026 — 8.75 379,625 126,542 $ 6.26 July 5, 2026 — 8.76 861,429 287,143 $ 7.06 July 18, 2026 — 8.80 13,333 13,333 $ 3.06 September 7, 2026 14,400 8.94 1,006,696 1,006,696 $ 3.28 September 22, 2026 865,759 8.98 69,166 29,164 $ 3.63 October 3, 2026 35,275 9.01 15,000 5,000 $ 4.35 December 9, 2026 — 9.19 50,000 — $ 5.39 February 7, 2027 — 9.36 40,000 10,000 $ 5.26 February 17, 2027 — 9.38 781,667 131,669 $ 5.92 May 12, 2027 — 9.61 12,500 1,042 $ 3.42 August 9, 2027 9,000 9.86 15,000 1,250 $ 4.33 September 19, 2027 — 9.97 5,092,030 3,326,223 $ 5,280,544 |
Schedule of general and administrative expenses and research and development expenses | These amounts have been included in general and administrative expenses and research and development expenses on the Company’s statement of operations as follows: 2017 2016 2015 General and administrative $ 2,017,199 $ 3,208,220 $ 1,633,979 Research and development 2,118,371 1,854,047 — Total share based compensation $ 4,135,570 $ 5,062,267 $ 1,633,979 |
Schedule of weighted average assumptions for fair value of each option award | The fair value of each option award is estimated on the date of grant using the Black Scholes option pricing model based on the following weighted average assumptions: 2017 2016 2015 Risk-free interest rate 2.11 % 1.28 % 1.63 % Expected life of options (years) 6.86 5.88 6.30 Annualized volatility 111.58 % 114.75 % 98.41 Dividend rate 0.00 % 0.00 % 0.00 % |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Sep. 30, 2017 | |
Income Tax Disclosure [Abstract] | |
Schedule of deferred tax assets and liabilities | The tax effects of the temporary differences that give rise to the Company’s estimated deferred tax assets and liabilities are as follows: 2017 2016 2015 Assumed Tax rate 34 % 34 % 34 % Net operating loss carryforwards $ 14,240,000 $ 11,223,000 $ 9,177,000 Research and development tax credits 1,344,000 1,036,000 794,000 Foreign exchange (25,000 ) (25,000 ) (10,000 ) Unpaid charges 28,000 152,000 832,000 Intangible asset costs 51,000 57,000 64,000 Stock-based compensation 3,394,000 2,004,000 581,000 Valuation allowance for deferred tax assets (19,032,000 ) (14,447,000 ) (11,438,000 ) Net deferred tax assets $ — $ — $ — |
Schedule of statutory income tax | The provision for income taxes differ from the amount established using the statutory income tax rate as follows: 2017 2016 2015 Income benefit at statutory rate of 34% $ (4,577,000 ) $ (5,010,000 ) $ (4,117,000 ) Foreign income taxed at other rates 68,000 132,000 80,000 Permanent differences Debt extinguishment — — (29,000 ) Mark-to-market deriative liability adjustment — — 193,000 Non-deductible finance and accretion expenses — 5,000 1,511,000 Non-deductible compensation costs — 738,000 Other permanent differences 2,000 — (5,000 ) Research and development tax credit (23,000 ) 628,000 502,000 Expiry of foreign net operating loss carryforwards — 333,000 — Adjustment and true up to prior years’ tax provision (55,000 ) 176,000 100,000 Effect of foreign exchange and other — (11,000 ) — Change in valuation allowance related to current year provision 4,585,000 3,009,000 1,765,000 Income Tax Recovery $ — $ — $ — |
Summary of Significant Accoun19
Summary of Significant Accounting Policies (Details Narrative) - shares | 12 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Accounting Policies [Abstract] | ||
Loss per share for potentially dilutive common shares | 6,711,339 | 6,008,309 |
Other Income (Details Narrative
Other Income (Details Narrative) - USD ($) | Jun. 19, 2015 | Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 |
Awarded grant funding amount | $ 286,455 | $ 140,942 | $ 141,195 | |
Grant income | 140,942 | 141,195 | ||
Research & Development Incentive Program (Australian Government) [Member] | ||||
Grant income | $ 2,022,902 | $ 571,093 |
Lincoln Park Purchase Agreeme21
Lincoln Park Purchase Agreement (Details Narrative) - 2015 Purchase Agreement [Member] - Lincoln Park Capital Fund, LLC [Member] - USD ($) | Oct. 21, 2015 | Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 |
Total number of shares obligated to purchase | $ 50,000,000 | |||
Agreement term | 36 months | |||
Description of purchases price | The Company may direct Lincoln Park, at its sole discretion, and subject to certain conditions, to purchase up to 50,000 shares of common stock on any business day, provided that at least one business day has passed since the most recent purchase. The amount of a purchase may be increased under certain circumstances provided, however that Lincoln Park’s committed obligation under any single purchase shall not exceed $2,000,000. The purchase price of shares of common stock related to the future funding will be based on the then prevailing market prices of such shares at the time of sales as described in the 2015 Purchase Agreement. | |||
Number of shares issued | 179,598 | 7,109,956 | 452,437 | |
Pro rata basic number of shares obligated to purchase | 89,799 | |||
Number of shares issued for aggregate purchase price | 7,060,976 | 450,000 | ||
Number of shares issued for aggregate purchase price, value | $ 27,270,674 | $ 1,357,800 | ||
Number of shares issued for commitment | 48,980 | 2,437 | ||
Amount of shares remain available | $ 21,371,526 |
Related Party Transactions (Det
Related Party Transactions (Details Narrative) - USD ($) | Sep. 30, 2017 | Sep. 30, 2016 |
Directors and Officers [Member] | ||
Related Party Transaction [Line Items] | ||
Accounts payable and accrued liabilities | $ 34,144 | $ 59,264 |
Commitments (Details)
Commitments (Details) | Sep. 30, 2017USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
2,018 | $ 115,189 |
2,019 | 57,594 |
Operating leases, future minimum payments receivable | $ 172,783 |
Commitments (Details 1)
Commitments (Details 1) - Purchase Warrants [Member] - $ / shares | 12 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||
Balance, at beginning | 1,809,309 | 4,272,890 |
Exercised | (200,000) | (2,463,581) |
Balance, at end | 1,609,309 | 1,809,309 |
Share based Compensation Arrangement By Share Based Payment Award Equity Instruments Other Than Options Outstanding Weighted Average Exercise Price [Roll Forward] | ||
Balance, at beginning | $ 2.70 | $ 2.11 |
Exercised | 3 | 1.67 |
Balance, at end | $ 2.66 | $ 2.70 |
Commitments (Details 2)
Commitments (Details 2) | 12 Months Ended |
Sep. 30, 2017$ / sharesshares | |
First Purchase Warrants [Member] | |
Number | 1,262,180 |
Exercise Price | $ / shares | $ 3 |
Expiry Date | Jul. 5, 2018 |
Second Purchase Warrants [Member] | |
Number | 30,000 |
Exercise Price | $ / shares | $ 4 |
Expiry Date | Feb. 24, 2019 |
Third Purchase Warrants [Member] | |
Number | 277,127 |
Exercise Price | $ / shares | $ 1.20 |
Expiry Date | Mar. 13, 2019 |
Four Purchase Warrants [Member] | |
Number | 1,252 |
Exercise Price | $ / shares | $ 1.68 |
Expiry Date | Mar. 13, 2019 |
Five Purchase Warrants [Member] | |
Number | 31,250 |
Exercise Price | $ / shares | $ 1.24 |
Expiry Date | May 31, 2019 |
Six Purchase Warrants [Member] | |
Number | 7,500 |
Exercise Price | $ / shares | $ 1.04 |
Expiry Date | May 31, 2019 |
Purchase Warrants [Member] | |
Number | 1,609,309 |
Commitments (Details 3)
Commitments (Details 3) - 2015 Omnibus Incentive Plan [Member] - $ / shares | 12 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ||
Outstanding at beginning | 4,199,000 | 1,822,500 |
Granted | 1,107,500 | 2,401,500 |
Expired | (25,000) | |
Forfeited | (214,470) | |
Outstanding at ending | 5,092,030 | 4,199,000 |
Exercisable at ending | 3,326,223 | 2,290,716 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Roll Forward] | ||
Outstanding at beginning | $ 3.76 | $ 2 |
Granted | 5.51 | 5.22 |
Expired | 14.68 | |
Forfeited | 4.06 | |
Outstanding at ending | 4.13 | 3.76 |
Exercisable at ending | 3.10 | 2.42 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Roll Forward] | ||
Granted | $ 5.44 | $ 4.38 |
Commitments (Details 4)
Commitments (Details 4) - USD ($) | 12 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | |
First Stock Option [Member] | |||
Total Number of Shares | 500,000 | ||
Number of Vested Shares | 500,000 | ||
Exercise Price | $ 1.60 | ||
Expiry Date | Jul. 5, 2023 | ||
Aggregate Intrinsic Value | $ 1,270,000 | ||
Remaining Contractual Life (in years) | 5 years 9 months 3 days | ||
Second Stock Option [Member] | |||
Total Number of Shares | 75,000 | ||
Number of Vested Shares | 75,000 | ||
Exercise Price | $ 1.20 | ||
Expiry Date | May 7, 2024 | ||
Aggregate Intrinsic Value | $ 220,500 | ||
Remaining Contractual Life (in years) | 6 years 7 months 6 days | ||
Third Stock Option [Member] | |||
Total Number of Shares | 125,000 | ||
Number of Vested Shares | 93,750 | ||
Exercise Price | $ 1.32 | ||
Expiry Date | May 8, 2024 | ||
Aggregate Intrinsic Value | $ 352,500 | ||
Remaining Contractual Life (in years) | 6 years 7 months 6 days | ||
Four Stock Option [Member] | |||
Total Number of Shares | 718,750 | ||
Number of Vested Shares | 718,750 | ||
Exercise Price | $ 0.92 | ||
Expiry Date | Apr. 2, 2025 | ||
Aggregate Intrinsic Value | $ 2,314,375 | ||
Remaining Contractual Life (in years) | 7 years 6 months | ||
Five Stock Option [Member] | |||
Total Number of Shares | 29,167 | ||
Number of Vested Shares | 29,167 | ||
Exercise Price | $ 1.44 | ||
Expiry Date | Jun. 8, 2025 | ||
Aggregate Intrinsic Value | $ 78,751 | ||
Remaining Contractual Life (in years) | 7 years 8 months 8 days | ||
Six Stock Option [Member] | |||
Total Number of Shares | 50,000 | ||
Number of Vested Shares | 33,333 | ||
Exercise Price | $ 1.76 | ||
Expiry Date | Jun. 15, 2025 | ||
Aggregate Intrinsic Value | $ 119,000 | ||
Remaining Contractual Life (in years) | 7 years 8 months 15 days | ||
Seven Stock Option [Member] | |||
Total Number of Shares | 266,250 | ||
Number of Vested Shares | 199,688 | ||
Exercise Price | $ 5.04 | ||
Expiry Date | Sep. 18, 2025 | ||
Aggregate Intrinsic Value | |||
Remaining Contractual Life (in years) | 7 years 11 months 19 days | ||
Eight Stock Option [Member] | |||
Total Number of Shares | 1,500 | ||
Number of Vested Shares | 1,500 | ||
Exercise Price | $ 5.64 | ||
Expiry Date | Sep. 30, 2025 | ||
Aggregate Intrinsic Value | |||
Remaining Contractual Life (in years) | 8 years | ||
Nine Stock Option [Member] | |||
Total Number of Shares | 31,250 | ||
Number of Vested Shares | 20,833 | ||
Exercise Price | $ 5.68 | ||
Expiry Date | Oct. 2, 2025 | ||
Aggregate Intrinsic Value | |||
Remaining Contractual Life (in years) | 8 years 4 days | ||
Ten Stock Option [Member] | |||
Total Number of Shares | 25,000 | ||
Number of Vested Shares | 16,666 | ||
Exercise Price | $ 8.98 | ||
Expiry Date | Oct. 16, 2025 | ||
Aggregate Intrinsic Value | |||
Remaining Contractual Life (in years) | 8 years 14 days | ||
Eleven Stock Option [Member] | |||
Total Number of Shares | 1,500 | ||
Number of Vested Shares | 1,500 | ||
Exercise Price | $ 5.57 | ||
Expiry Date | Dec. 31, 2025 | ||
Aggregate Intrinsic Value | |||
Remaining Contractual Life (in years) | 8 years 3 months | ||
Twelve Stock Option [Member] | |||
Total Number of Shares | 1,500 | ||
Number of Vested Shares | 1,500 | ||
Exercise Price | $ 4.9 | ||
Expiry Date | Mar. 31, 2026 | ||
Aggregate Intrinsic Value | |||
Remaining Contractual Life (in years) | 8 years 6 months | ||
Thirteen Stock Option [Member] | |||
Total Number of Shares | 1,500 | ||
Number of Vested Shares | 1,500 | ||
Exercise Price | $ 5.66 | ||
Expiry Date | Apr. 27, 2026 | ||
Aggregate Intrinsic Value | |||
Remaining Contractual Life (in years) | 8 years 6 months 25 days | ||
Fourteen Stock Option [Member] | |||
Total Number of Shares | 19,697 | ||
Number of Vested Shares | 19,697 | ||
Exercise Price | $ 4.09 | ||
Expiry Date | May 18, 2026 | ||
Aggregate Intrinsic Value | $ 985 | ||
Remaining Contractual Life (in years) | 8 years 7 months 16 days | ||
Fifteen Stock Option [Member] | |||
Total Number of Shares | 1,500 | ||
Number of Vested Shares | 1,500 | ||
Exercise Price | $ 6.11 | ||
Expiry Date | Jun. 30, 2026 | ||
Aggregate Intrinsic Value | |||
Remaining Contractual Life (in years) | 8 years 9 months | ||
Sixteen Stock Option [Member] | |||
Total Number of Shares | 379,625 | ||
Number of Vested Shares | 126,542 | ||
Exercise Price | $ 6.26 | ||
Expiry Date | Jul. 5, 2026 | ||
Aggregate Intrinsic Value | |||
Remaining Contractual Life (in years) | 8 years 9 months 3 days | ||
Seventeen Stock Option [Member] | |||
Total Number of Shares | 861,429 | ||
Number of Vested Shares | 287,143 | ||
Exercise Price | $ 7.06 | ||
Expiry Date | Jul. 18, 2026 | ||
Aggregate Intrinsic Value | |||
Remaining Contractual Life (in years) | 8 years 9 months 18 days | ||
Eighteen Stock Option [Member] | |||
Total Number of Shares | 13,333 | ||
Number of Vested Shares | 13,333 | ||
Exercise Price | $ 3.06 | ||
Expiry Date | Sep. 7, 2026 | ||
Aggregate Intrinsic Value | $ 14,400 | ||
Remaining Contractual Life (in years) | 8 years 11 months 8 days | ||
Nineteen Stock Option [Member] | |||
Total Number of Shares | 1,006,696 | ||
Number of Vested Shares | 1,006,696 | ||
Exercise Price | $ 3.28 | ||
Expiry Date | Sep. 22, 2026 | ||
Aggregate Intrinsic Value | $ 865,759 | ||
Remaining Contractual Life (in years) | 8 years 11 months 22 days | ||
Twenty Stock Option [Member] | |||
Total Number of Shares | 69,166 | ||
Number of Vested Shares | 29,164 | ||
Exercise Price | $ 3.63 | ||
Expiry Date | Oct. 3, 2026 | ||
Aggregate Intrinsic Value | $ 35,275 | ||
Remaining Contractual Life (in years) | 9 years 3 days | ||
Twenty One Stock Option [Member] | |||
Total Number of Shares | 15,000 | ||
Number of Vested Shares | 5,000 | ||
Exercise Price | $ 4.35 | ||
Expiry Date | Dec. 9, 2026 | ||
Aggregate Intrinsic Value | |||
Remaining Contractual Life (in years) | 9 years 2 months 8 days | ||
Twenty Two Stock Option [Member] | |||
Total Number of Shares | 50,000 | ||
Number of Vested Shares | |||
Exercise Price | $ 5.39 | ||
Expiry Date | Feb. 7, 2027 | ||
Aggregate Intrinsic Value | |||
Remaining Contractual Life (in years) | 9 years 6 months 9 days | ||
Twenty Three Stock Option [Member] | |||
Total Number of Shares | 40,000 | ||
Number of Vested Shares | 10,000 | ||
Exercise Price | $ 5.26 | ||
Expiry Date | Feb. 17, 2027 | ||
Aggregate Intrinsic Value | |||
Remaining Contractual Life (in years) | 9 years 4 months 16 days | ||
Twenty Four Stock Option [Member] | |||
Total Number of Shares | 781,667 | ||
Number of Vested Shares | 131,669 | ||
Exercise Price | $ 5.92 | ||
Expiry Date | May 12, 2027 | ||
Aggregate Intrinsic Value | |||
Remaining Contractual Life (in years) | 9 years 7 months 9 days | ||
Twenty Five Stock Option [Member] | |||
Total Number of Shares | 12,500 | ||
Number of Vested Shares | 1,042 | ||
Exercise Price | $ 3.42 | ||
Expiry Date | Aug. 9, 2027 | ||
Aggregate Intrinsic Value | $ 9,000 | ||
Remaining Contractual Life (in years) | 9 years 10 months 9 days | ||
Twenty Six Stock Option [Member] | |||
Total Number of Shares | 15,000 | ||
Number of Vested Shares | 1,250 | ||
Exercise Price | $ 4.33 | ||
Expiry Date | Sep. 19, 2027 | ||
Aggregate Intrinsic Value | |||
Remaining Contractual Life (in years) | 9 years 11 months 19 days | ||
2015 Omnibus Incentive Plan [Member] | |||
Total Number of Shares | 5,092,030 | 4,199,000 | 1,822,500 |
Number of Vested Shares | 3,326,223 | ||
Exercise Price | $ 4.13 | $ 3.76 | $ 2 |
Aggregate Intrinsic Value | $ 5,280,544 |
Commitments (Details 5)
Commitments (Details 5) - USD ($) | 12 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | |
Total share based compensation | $ 4,135,570 | $ 5,062,267 | $ 1,633,979 |
General and administrative [Member] | |||
Total share based compensation | 2,017,199 | 3,208,220 | 1,633,979 |
Research and development [Member] | |||
Total share based compensation | $ 2,118,371 | $ 1,854,047 |
Commitments (Details 6)
Commitments (Details 6) | 12 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |||
Risk-free interest rate | 2.11% | 1.28% | 1.63% |
Expected life of options (years) | 6 years 10 months 9 days | 5 years 10 months 16 days | 6 years 3 months 18 days |
Annualized volatility | 111.58% | 114.75% | 98.41% |
Dividend rate | 0.00% | 0.00% | 0.00% |
Commitments (Details Narrative)
Commitments (Details Narrative) - USD ($) | 12 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | |
Remaining stock based compensation | $ 7,964,225 | ||
Share based compensation | 4,135,570 | $ 5,062,267 | $ 1,633,979 |
Share based compensation with the vesting of restricted stock | $ 610,000 | $ 1,220,000 | |
2015 Omnibus Incentive Plan [Member] | |||
Maximum number of common shares reserved for future issuance | 6,050,553 | ||
Description of grant option | The exercise price will be determined by the board of directors at the time of grant shall be at least equal to the fair market value on such date. If the grantee is a 10% stockholder on the grant date, then the exercise price shall not be less than 110% of fair market value of the Company’s shares of common stock on the grant date. | ||
Expiration period | 10 years | ||
Purchase Warrants [Member] | |||
Number of warrant exercisable | 1,609,309 | ||
Weighted average exercise price | $ 2.66 | ||
Expiration date | Jul. 5, 2018 | ||
Description of cancellation policy | The Company may have the option to call for cancellation of all or any portion of the warrants for consideration equal to $0.001 per share, provided the quoted market price of the Companys common stock exceeds $6.00 for a period of twenty consecutive trading days, subject to certain minimum volume restrictions and other restrictions as provided in the warrant agreements. | ||
Number of warrants exercised | 200,000 | 2,421,894 | |
Number of common shares called | 52,562 | 1,979,246 | |
Number of shares issued for cash | 41,687 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) | 12 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | |
Income Tax Disclosure [Abstract] | |||
Assumed Tax rate | 34.00% | 34.00% | 34.00% |
Net operating loss carryforwards | $ 14,240,000 | $ 11,223,000 | $ 9,177,000 |
Research and development tax credits | 1,344,000 | 1,036,000 | 794,000 |
Foreign exchange | (25,000) | (25,000) | (10,000) |
Unpaid charges | 28,000 | 152,000 | 832,000 |
Intangible asset costs | 51,000 | 57,000 | 64,000 |
Stock-based compensation | 3,394,000 | 2,004,000 | 581,000 |
Valuation allowance for deferred tax assets | (19,032,000) | (14,447,000) | (11,438,000) |
Net deferred tax assets |
Income Taxes (Details 1)
Income Taxes (Details 1) - USD ($) | 12 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | |
Income Tax Disclosure [Abstract] | |||
Income benefit at statutory rate of 34% | $ (4,577,000) | $ (5,010,000) | $ (4,117,000) |
Foreign income taxed at other rates | 68,000 | 132,000 | 80,000 |
Permanent differences | |||
Debt extinguishment | (29,000) | ||
Mark-to-market deriative liability adjustment | 193,000 | ||
Non-deductible finance and accretion expenses | 5,000 | 1,511,000 | |
Non-deductible compensation costs | 738,000 | ||
Other permanent differences | 2,000 | (5,000) | |
Research and development tax credit | (23,000) | 628,000 | 502,000 |
Expiry of foreign net operating loss carryforwards | 333,000 | ||
Adjustment and true up to prior years' tax provision | (55,000) | 176,000 | 100,000 |
Effect of foreign exchange and other | (11,000) | ||
Change in valuation allowance related to current year provision | 4,585,000 | 3,009,000 | 1,765,000 |
Income Tax Recovery |
Income Taxes (Details Narrative
Income Taxes (Details Narrative) - USD ($) | 12 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | |
Operating loss carry-forwards, expiration year | 2,027 | ||
United States [Member] | |||
Operating loss carry-forwards | $ 41,000,000 | $ 33,000,000 | $ 25,000,000 |
Australia [Member] | |||
Operating loss carry-forwards | 850,000 | 250,000 | |
Germany [Member] | |||
Operating loss carry-forwards | $ 13,000 |
Supplemental Cash Flow Inform34
Supplemental Cash Flow Information (Details Narrative) | 12 Months Ended | |
Sep. 30, 2016USD ($)$ / sharesshares | Sep. 30, 2015USD ($)Number$ / sharesshares | |
Capital stock issued pursuant to debt conversions (in shares) | Number | 7,272,487 | |
Additional number of equity instrument issued upon conversion | shares | 167,415 | |
Debt beneficial conversion feature | $ 7,439,900 | |
Conversion price (in dollars per share) | $ / shares | $ 1 | $ 1 |
Reclassification of derivative liability | $ 4,482,000 | |
Amount of shares issued | $ 167,415 | |
Shares issued pursuant to favored nations provision (in shares) | shares | 658,612 | |
Stock price (in dollars per share) | $ / shares | $ 1 | |
Senior Convertible Debentures Due March 18, 2044 [Member] | Securities Purchase Agreement [Member] | ||
Conversion price (in dollars per share) | $ / shares | $ 1 | |
Amount of shares issued | $ 6,162 | |
Number of shares issued | shares | 6,162 |