Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Sep. 30, 2018 | Dec. 12, 2018 | Mar. 31, 2018 | |
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, 2018 | ||
Amendment Flag | false | ||
Current Fiscal Year End Date | --09-30 | ||
Entity a Well-known Seasoned Issuer | No | ||
Entity a Voluntary Filer | No | ||
Entity Shell Company | false | ||
Entity's Reporting Status Current | Yes | ||
Entity Small Business | true | ||
Entity Emerging Growth Company | false | ||
Entity Ex Transition Period | false | ||
Entity Filer Category | Accelerated Filer | ||
Entity Public Float | $ 114,432,887 | ||
Entity Common Stock, Shares Outstanding | 46,586,162 | ||
Document Fiscal Period Focus | FY | ||
Document Fiscal Year Focus | 2,018 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) | Sep. 30, 2018 | Sep. 30, 2017 |
Current | ||
Cash and cash equivalents | $ 22,930,638 | $ 27,440,257 |
Sales tax recoverable | 40,171 | 9,748 |
Prepaid expenses | 1,251,798 | 335,928 |
Deferred costs | 101,133 | |
Deposits | 52,396 | 52,396 |
Current assets | 24,323,740 | 27,785,933 |
Total Assets | 24,376,136 | 27,838,329 |
Current | ||
Accounts payable and accrued liabilities | 3,884,626 | 3,584,334 |
Total Liabilities | 3,884,626 | 3,584,334 |
Capital stock Authorized: 100,000,000 common shares, par value $0.001 per share Issued and outstanding: 45,933,472 common shares (2017 - 43,330,817) | 45,935 | 43,332 |
Additional paid-in capital | 129,377,542 | 115,689,221 |
Accumulated deficit | (108,931,967) | (91,478,558) |
Total Stockholders' Equity | 20,491,510 | 24,253,995 |
Total Liabilities and Stockholders' Equity | $ 24,376,136 | $ 27,838,329 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Sep. 30, 2018 | Sep. 30, 2017 |
Statement of Financial Position [Abstract] | ||
Capital shares, authorized | 100,000,000 | 100,000,000 |
Capital shares, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Capital shares, issued | 45,933,472 | 43,330,817 |
Capital shares, outstanding | 45,933,472 | 43,330,817 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) | 12 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | |
Operating expenses | |||
General and administrative | $ 5,989,170 | $ 5,008,275 | $ 8,334,740 |
Research and development | 13,344,421 | 10,672,086 | 7,254,303 |
Total operating expenses | (19,333,591) | (15,680,361) | (15,589,043) |
Other income (expenses) | |||
Grant income | 149,055 | 140,942 | 141,195 |
Research and development incentive income | 1,629,513 | 2,022,902 | 571,093 |
Interest income | 255,092 | 88,098 | 11,322 |
Gain on settlement of accounts payable | 75,204 | 151,402 | |
Gain on settlement of debt | 61,205 | ||
Financing related charges | (30,943) | (5,812) | |
Foreign exchange loss, net | (49,789) | (47,583) | (48,445) |
Total other income (expense), net | 1,952,928 | 2,279,563 | 881,960 |
Net loss before provision for income taxes | (17,380,663) | (13,400,798) | (14,707,083) |
Income tax expense | 72,746 | 59,607 | 29,615 |
Net loss and comprehensive loss | $ (17,453,409) | $ (13,460,405) | $ (14,736,698) |
Loss per share Basic and diluted (in dollars per share) | $ (0.39) | $ (0.33) | $ (0.42) |
Weighted average number of shares outstanding Basic and diluted (in shares) | 44,655,725 | 40,841,033 | 35,153,426 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) | 12 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | |
Cash Flows used in Operating Activities | |||
Net loss | $ (17,453,409) | $ (13,460,405) | $ (14,736,698) |
Adjustments to reconcile net loss to net cash used in operations: | |||
Amortization and depreciation | 1,252 | ||
Accretion of debt discount | 5,830 | ||
Stock-based compensation | 5,517,004 | 4,135,570 | 5,062,267 |
Gain on extinguishment of debt | (61,205) | ||
Gain on settlement of accounts payable | (75,204) | (151,402) | |
Unrealized foreign exchange | 3,065 | ||
Changes in non-cash working capital balances related to operations: | |||
Sales tax recoverable | (30,423) | 54,435 | (2,507) |
Prepaid expenses and deposits | (915,870) | (155,804) | (79,279) |
Deposits | (52,396) | ||
Accounts payable and accrued liabilities | 300,292 | 554,709 | 775,332 |
Deferred grant income | (70,532) | (1,082) | |
Net cash used in operating activities | (12,582,406) | (9,017,231) | (9,236,823) |
Cash Flows provided by Financing Activities | |||
Issuance of common shares | 8,173,920 | 27,270,674 | 3,167,420 |
Deferred financing charges | (101,133) | ||
Repayment of promissory notes | (34,759) | ||
Net cash provided by financing activities | 8,072,787 | 27,270,674 | 3,132,661 |
Increase (decrease) in cash and cash equivalents during the year | (4,509,619) | 18,253,443 | (6,104,162) |
Cash and cash equivalents, beginning of year | 27,440,257 | 9,186,814 | 15,290,976 |
Cash and cash equivalents, end of year | $ 22,930,638 | $ 27,440,257 | $ 9,186,814 |
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, 2015 | $ 32,044 | $ 74,060,999 | $ 1,997,415 | $ (63,281,455) | $ 12,809,003 |
Balance Beginning (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 | $ 173 | 173,404 | (167,415) | 6,162 | |
Capital stock issued pursuant to debt conversions (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 cashless exercise of warrants | $ 1,979 | (1,979) | |||
Shares issued pursuant to cashless exercise of warrants (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 reverse split | $ 2 | (2) | |||
Shares issued for rounding in connection with reverse split (in shares) | 1,437 | ||||
Stock option 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 | ||||
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 | ||||
Capital stock issued pursuant to debt conversions | |||||
Capital stock issued pursuant to debt conversions (in shares) | |||||
Shares issued pursuant to the exercise of warrants | |||||
Shares issued pursuant to the exercise of warrants (in shares) | |||||
Shares issued pursuant to cashless exercise of warrants | $ 53 | (53) | |||
Shares issued pursuant to cashless exercise of warrants (in shares) | 52,562 | ||||
Shares issued pursuant to employment agreement | |||||
Shares issued pursuant to employment agreement (in shares) | |||||
Shares issued for rounding in connection with reverse split | |||||
Shares issued for rounding in connection with reverse split (in shares) | |||||
Shares issued pursuant to cashless exercise of options | |||||
Shares issued pursuant to cashless exercise of options (in shares) | |||||
Share 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 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Shares issued under purchase agreement - purchase shares | $ 2,384 | 8,171,536 | $ 8,173,920 | ||
Shares issued under purchase agreement - purchase shares (in shares) | 2,383,580 | ||||
Shares issued under purchase agreement - commitment shares | $ 15 | (15) | |||
Shares issued under purchase agreement - commitment shares (in shares) | 14,681 | ||||
Capital stock issued pursuant to debt conversions | |||||
Capital stock issued pursuant to debt conversions (in shares) | |||||
Shares issued pursuant to the exercise of warrants | |||||
Shares issued pursuant to the exercise of warrants (in shares) | |||||
Shares issued pursuant to cashless exercise of warrants | $ 126 | (126) | |||
Shares issued pursuant to cashless exercise of warrants (in shares) | 125,748 | ||||
Shares issued pursuant to employment agreement | |||||
Shares issued pursuant to employment agreement (in shares) | |||||
Shares issued for rounding in connection with reverse split | |||||
Shares issued for rounding in connection with reverse split (in shares) | |||||
Shares issued pursuant to cashless exercise of options | $ 78 | (78) | |||
Shares issued pursuant to cashless exercise of options (in shares) | 78,646 | ||||
Share based compensation | 5,517,004 | 5,517,004 | |||
Net loss | (17,453,409) | (17,453,409) | |||
Balance Ending at Sep. 30, 2018 | $ 45,935 | $ 129,377,542 | $ (108,931,967) | $ 20,491,510 | |
Balance Ending (in shares) at Sep. 30, 2018 | 45,933,472 | 45,933,472 |
CONSOLIDATED STATEMENT OF CHA_2
CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY (Parenthetical) | 12 Months Ended |
Sep. 30, 2016$ / sharesshares | |
Statement of Stockholders' Equity [Abstract] | |
Shares issued for rounding, reverse stock split | shares | 4 |
Share price of capital stock issued pursuant to debt conversions | $ / shares | $ 1 |
Business Description and Basis
Business Description and Basis of Presentation | 12 Months Ended |
Sep. 30, 2018 | |
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 by applying precision medicine to central nervous system (“CNS”) diseases with high unmet need. Anavex analyzes genomic data from clinical studies to identify biomarkers, which select patients that will receive the therapeutic benefit for the treatment of neurodegenerative and neurodevelopmental diseases. The Company’s lead compound ANAVEX 2-73 is being developed to treat Alzheimer’s disease, Parkinson’s disease and potentially other central nervous system diseases, including rare diseases, such as Rett syndrome, a rare severe neurological monogenic disorder caused by mutations in the X-linked gene, methyl-CpG-binding protein 2 (“MECP2”). Basis of Presentation These consolidated financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”) and the instructions to Form 10-K and have been prepared under the accounting principles generally accepted in the United States of America (“GAAP”). Liquidity All of the Company’s potential drug compounds are in the clinical development stage and the Company cannot be certain that its research and development efforts will be successful or, if successful, that its potential drug compounds will ever be approved for sales to pharmaceutical companies or generate commercial revenues. To date, we have not generated any revenues from our operations. The Company expects the business to continue to experience negative cash flows for the foreseeable future and cannot predict when, if ever, our business might become profitable. The Company believes that its existing cash and cash equivalents, along with existing financial commitments from third parties, will be sufficient to meet its cash commitments for at least the next two years after the date that these consolidated financial statements are issued. The process of drug development can be costly, and the timing and outcomes of clinical trials is uncertain. The assumptions upon which the Company has based its estimates are routinely evaluated and may be subject to change. The actual amount of the Company’s expenditures will vary depending upon a number of factors including but not limited to the design, timing and duration of future clinical trials, the progress of the Company’s research and development programs and the level of financial resources available. The Company has the ability to adjust its operating plan spending levels based on the timing of future clinical trials. The Company will need to raise additional capital in order to continue to fund operations and fully fund later stage clinical development programs. Such capital may not be available on commercially acceptable terms, if at all. The Company believes that it will be able to obtain additional working capital to fund future operations through current financing commitments from third parties, or through other arrangements; however, there can be no assurance that such additional financing, if available, can be obtained on terms acceptable to the Company. If the Company is unable to obtain such additional financing, future operations would need to be scaled back. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Sep. 30, 2018 | |
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 GAAP 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, 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 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. Manufacturing costs are expensed as incurred in accordance with Accounting Standard Codification (“ASC”) 730, Research and Development, as these materials have no alternative future use outside of their intended use. 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. e) 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. f) 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, 2018, loss per share excludes 7,185,296 (2017 – 6,711,339) potentially dilutive common shares related to outstanding options and warrants, as their effect was anti-dilutive. g) 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. h) 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. 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 Financial Accounting Standards Board (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, 2018 and 2017, the Company did not have any Level 3 assets or liabilities. m) Recent Accounting Pronouncements Recently Adopted Accounting Pronouncements In November 2015, the FASB issued Accounting Standards Update (“ASU”) No. 2015-17 “ Income Taxes: Balance Sheet Classification of Deferred Taxes In March 2016, the FASB issued ASC 2016-09, “ Compensation – Stock Compensation (Topic 718) – Improvements to Employee Share-Based Payment Accounting In November 2016, the FASB issued ASU 2016-18, “Statement of Cash Flows (Topic 230): Restricted Cash” (“ASU 2016-18”). ASU 2016-18 requires that a statement of cash flows explain the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. Therefore, amounts generally described as restricted cash and restricted cash equivalents should be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. ASU 2016-18 is effective for fiscal years beginning after December 15, 2017. Early adoption is permitted. The Company early adopted this standard on October 1, 2017. The adoption of this standard did not have any material affect on the Company’s consolidated financial statements. The SEC staff issued Staff Accounting Bulletin (“SAB”) 118, which provides guidance on accounting for the tax effects of the U.S. tax reform announced on December 22, 2017 by the U.S. Government commonly referred to as the Tax Cuts and Jobs Act. SAB 118 provides a measurement period that should not extend beyond one year from the U.S. tax reform enactment date for companies to complete the accounting under Accounting Standards Codification (“ASC”) 740. In accordance with SAB 118, a company must reflect the income tax effects of those aspects of the U.S. tax reform for which the accounting under ASC 740 is complete. Specifically, the Company was required to revalue its U.S. deferred tax assets and liabilities due to the federal income tax rate reduction from 35 percent to 21 percent. Since the Company has provided a full valuation allowance against its deferred tax assets, the revaluation of the deferred tax assets did not have a material impact on any period presented. 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 new guidance is effective for the Company on a prospective basis beginning on October 1, 2018. 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 February 2016, the FASB issued Accounting Standards Update No. 2016-02, Leases In May 2017, the FASB issued 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. In June 2018, the FASB issued ASU 2018-07, Compensation-Stock Compensation (Topic 718), Improvements to Nonemployee Share-based Payments (“ASU 2018-07”). This ASU expands the scope of Topic 718 to include share-based payment transactions for acquiring goods and services from nonemployees. The effective date for the standard is for interim periods in fiscal years beginning after December 15, 2018, with early adoption permitted, but no earlier than the Company’s adoption date of Topic 606. The new guidance is effective for the Company beginning on October 1, 2019. The new guidance is required to be applied retrospectively with the cumulative effect recognized at the date of initial application. The Company is currently evaluating the effect ASU 2018-07 will have on the consolidated financial statements. 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, 2018 | |
Component of Operating Income [Abstract] | |
Other Income | Note 3 Other Income Grant Income Clinical Study Grant During the year ended September 30, 2017, the Company was awarded grant funding in the amount of $597,886. The grant is being received in equal quarterly installments over a period of two years beginning during the year ended September 30, 2018 in exchange for a commitment to complete clinical testing for a therapeutic drug candidate for the treatment of Rett syndrome. The grant income is deferred when received and amortized to other income as the related research and development expenditures are incurred. During the year ended September 30, 2018, the Company recognized $149,055 (2017: $Nil; 2016$Nil) of this grant on its statement of operations within grant income. Preclinical Study Grant During the year ended September 30, 2015, the Company was awarded grant funding in the amount of $286,455. The grant was 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, 2018, the Company recognized $Nil (2017: $140,942; 2016: $141,195) of this grant on its statement of operations within grant income. Research and development tax incentive During the year ended September 30, 2018, the Company received other income of $1,629,513 (2017: $2,022,902; 2016: $571,093) in respect of a research and development incentive program offered by the Australian government. |
Equity Offering Agreements
Equity Offering Agreements | 12 Months Ended |
Sep. 30, 2018 | |
Number of shares issued for commitment | |
Equity Offering Agreements | Note 4 Equity Offering Agreements Controlled Equity Offering Sales Agreement On July 6, 2018, the Company entered into a Controlled Equity Offering Sales Agreement (the “Sales Agreement”) with Cantor Fitzgerald & Co., as agent (“Cantor Fitzgerald”), pursuant to which the Company may offer and sell shares of common stock, for aggregate gross sale proceeds of up to $50,000,000 from time to time through Cantor Fitzgerald (the “Offering”). Upon delivery of a placement notice based on the Company’s instructions and subject to the terms and conditions of the Sales Agreement, Cantor Fitzgerald may sell the Shares by methods deemed to be an “at the market offering” offering, in negotiated transactions at market prices prevailing at the time of sale or at prices related to such prevailing market prices, or by any other method permitted by law, including negotiated transactions, subject to the prior written consent of the Company. The Company is not obligated to make any sales of Shares under the Sales Agreement. The Company or Cantor Fitzgerald may suspend or terminate the offering of Shares upon notice to the other party, subject to certain conditions. Cantor Fitzgerald will act as sales agent on a commercially reasonable efforts basis consistent with its normal trading and sales practices and applicable state and federal law, rules and regulations and the rules of Nasdaq. The Company has agreed to pay Cantor Fitzgerald commissions for its services of acting as agent of up to 3.0% of the gross proceeds from the sale of the Shares pursuant to the Sales Agreement. The Company has also agreed to provide Cantor Fitzgerald with customary indemnification and contribution rights. During the year ended September 30, 2018, the Company incurred $101,133 in legal and accounting fees associated with the Sales Agreement. This amount is included in deferred costs at September 30, 2018 and is expected to be reclassified to share capital upon issuance of shares under the Sales Agreement. 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 starting from the effective date of the respective registration statement, to September 6, 2019. 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, 2018, the Company issued to Lincoln Park an aggregate of 2,398,261 (2017: 7,109,956; 2016: 452,437) shares of common stock under the Purchase Agreement, including 2,383,580 (2017: 7,060,976; 2016: 450,000) shares of common stock for an aggregate purchase price of $8,173,920 (2017 $27,270,674; 2016: $1,357,800) and 14,681 (2017: 48,980; 2016: 2,437) commitment shares. At September 30, 2018, an amount of $13,197,607 remained available under the 2015 Purchase Agreement. |
Commitments
Commitments | 12 Months Ended |
Sep. 30, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments | Note 5 Commitments a) Lease Commitment The Company has entered into an office lease agreement expiring March 31, 2019. The Company is committed to lease commitments as follows: Fiscal year ending September 30, 2019 $ 70,022 $ 70,022 During the year ended September 30, 2018 the Company recorded rent expense of $151,405 (2017: $127,993, 2016: $125,317) which is included in general and administrative expenses on the consolidated statement of operations. 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 Issued 350,000 $ 4.19 Exercised (756,143 ) $ 2.96 Expired (524,787 ) $ 3.00 Balance, September 30, 2018 678,379 $ 2.87 At September 30, 2018, the Company had 678,379 share purchase warrants outstanding, with a weighted average exercise price of $2.87 as follows: Number Exercise Price Expiry Date 30,000 $ 4.00 February 24, 2019 277,127 $ 1.20 March 13, 2019 1,252 $ 1.68 March 13, 2019 12,500 $ 1.24 May 31, 2019 7,500 $ 1.04 May 31, 2019 350,000 $ 4.19 June 30, 2021 678,379 During the year ended September 30, 2018, 350,000 options granted to a consultant to the Company were converted to 350,000 warrants with the same exercise price. During the year ended September 30, 2018, an aggregate of 737,393 share purchase warrants at $3.00 per share and 18,750 share purchase warrants at $1.24 per share were exercised on a cashless basis, pursuant to which the Company issued 125,748 shares of common stock and an additional 80,981 shares of common stock were to be issued. The remaining 524,787 share purchase warrants exercisable at $3.00 per share until July 5, 2018 expired unexercised. 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 the previously existing stock option plans remain outstanding in accordance with their terms. The 2015 Plan provides that it may be administered by the board of directors, or the board of directors may delegate such responsibility to a committee. 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 ) 4.09 Outstanding at September 30, 2017 5,092,030 $ 4.13 Granted 1,730,000 $ 2.71 $ 2.09 Forfeited (164,280 ) $ 3.66 Exercised (150,833 ) $ 1.18 Outstanding at September 30, 2018 6,506,917 $ 3.83 Exercisable at September 30, 2018 4,108,028 $ 3.75 Exercisable at September 30, 2017 3,326,223 $ 3.10 At September 30, 2018, 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 $ 565,000 4.76 37,500 37,500 $ 1.20 May 7, 2024 57,375 5.60 125,000 125,000 $ 1.32 May 8, 2024 176,250 5.60 618,750 618,750 $ 0.92 April 2, 2025 1,119,938 6.51 29,167 29,167 $ 1.44 June 8, 2025 37,625 6.69 50,000 50,000 $ 1.76 June 15, 2025 48,500 6.71 253,750 253,750 $ 5.04 September 18, 2025 — 6.97 1,500 1,500 $ 5.64 September 30, 2025 — 7.00 31,250 31,250 $ 5.68 October 2, 2025 — 7.01 25,000 25,000 $ 8.98 October 16, 2025 — 7.04 1,500 1,500 $ 5.57 December 31, 2025 — 7.25 1,500 1,500 $ 4.90 March 31, 2026 — 7.50 1,500 1,500 $ 5.66 April 27, 2026 — 7.57 1,500 1,500 $ 6.11 June 30, 2026 — 7.75 379,625 253,083 $ 6.26 July 5, 2026 — 7.76 861,429 574,286 $ 7.06 July 18, 2026 — 7.80 906,696 906,696 $ 3.28 September 22, 2026 — 7.98 60,000 39,999 $ 3.63 October 3, 2026 — 8.01 8,750 8,750 $ 4.35 December 9, 2026 — 8.19 50,000 16,667 $ 5.39 February 7, 2027 — 8.36 40,000 23,333 $ 5.26 February 17, 2027 — 8.38 774,166 389,170 $ 5.92 May 12, 2027 — 8.61 12,500 5,209 $ 3.42 August 9, 2027 — 8.86 15,000 6,250 $ 4.33 September 19, 2027 — 8.97 540,834 135,834 $ 3.30 December 13, 2027 — 9.20 50,000 — $ 2.60 March 2, 2028 6,500 9.42 200,000 33,334 $ 2.72 March 19, 2028 2,000 9.47 780,000 25,000 $ 2.30 May 15, 2028 335,400 9.62 150,000 12,500 $ 2.70 August 6, 2028 4,500 9.85 6,506,917 4,108,028 $ 2,353,088 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, 2018. The Company recognized stock-based compensation expense of $5,517,004 during the year ended September 30, 2018 (2017: $4,135,570; 2016: $4,452,267) in connection with the issuance and vesting of stock options and warrants in exchange for services, and $Nil (2017: $Nil 2016: $610,000), 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: 2018 2017 2016 General and administrative $ 2,699,557 $ 2,017,199 $ 3,208,220 Research and development 2,817,447 2,118,371 1,854,047 Total share based compensation $ 5,517,004 $ 4,135,570 $ 5,062,267 An amount of approximately $6,827,054 in stock-based compensation is expected to be recorded over the remaining term of such options through June 30, 2021. 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: 2018 2017 2016 Risk-free interest rate 2.73 % 2.11 % 1.28 % Expected life of options (years) 5.60 6.86 5.88 Annualized volatility 106.45 % 111.58 % 114.75 % Dividend rate 0.00 % 0.00 % 0.00 % The fair value of restricted stock compensation charges recognized during the years ended September 30, 2018, 2017 and 2016 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, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 6 Income Taxes US Tax Reform On December 22, 2017, the President of the United States signed into law the Tax Cuts and Jobs Act (“Tax Reform Act”). The legislation significantly changes U.S. tax law by, among other things, lowering corporate income tax rates, implementing a territorial tax system and imposing a transition tax on deemed repatriated earnings of foreign subsidiaries. The Tax Reform Act permanently reduces the U.S. corporate income tax rate from a maximum of 35% to a flat 21% rate, effective January 1, 2018. The Company uses the asset and liability method of accounting for income taxes. Under this method, deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis. 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 reverse. As a result of the reduction in the U.S. corporate income tax rate from 35% to 21% under the Tax Reform Act, the Company revalued its ending net deferred tax assets at September 30, 2018. The Company did not need to recognize any provisional tax expense for the year ended September 30, 2018 as it has recorded a full valuation allowance against its deferred tax assets. The Tax Reform Act also provided for a one-time deemed mandatory repatriation of post – 1986 undistributed foreign subsidiary earnings and profits (“E&P”) as well as Global Intangible Low-Taxed Income (“GILTI”) and Base-Erosion Anti-Abuse provisions. The Company had no adjustments related to these latter noted provisions at September 30, 2018. The tax effects of the temporary differences that give rise to the Company’s estimated deferred tax assets and liabilities are as follows: 2018 2017 2016 Assumed Tax rate 21 % 34 % 34 % Net operating loss carryforwards $ 11,123,000 $ 14,240,000 $ 11,223,000 Research and development tax credits 1,605,000 1,344,000 1,036,000 Foreign exchange and other 13,000 (25,000 ) (25,000 ) Unpaid charges 72,000 28,000 152,000 Intangible asset costs 28,000 51,000 57,000 Stock-based compensation 3,152,000 3,394,000 2,004,000 Valuation allowance for deferred tax assets (15,993,000 ) (19,032,000 ) (14,447,000 ) Net deferred tax assets $ — $ — $ — The provision for income taxes differ from the amount established using the statutory income tax rate as follows: 2018 2017 2016 Income benefit at statutory rate $ (4,215,000 ) $ (4,577,000 ) $ (5,010,000 ) Foreign income taxed at other rates (173,000 ) 68,000 132,000 Permanent differences Non-deductible finance and accretion expenses — — 5,000 Non-deductible compensation costs — — 738,000 Other permanent differences 1,000 2,000 — Research and development tax credit (77,000 ) (23,000 ) 628,000 Expiry of foreign net operating loss carryforwards — — 333,000 Adjustment and true up to prior years’ tax provision 336,000 (55,000 ) 176,000 Effect of changes in tax rates 7,166,000 — (11,000 ) Change in valuation allowance related to current year provision (3,038,000 ) 4,585,000 3,009,000 Income Tax Recovery $ — $ — $ — As of September 30, 2018, the Company had net operating loss carry-forwards of approximately $50,557,000 (2017: $41,000,000; 2016: $33,000,000) in the United States, approximately $986,000 (Approximately AUD$1,365,000) (2017: $850,000; 2016: $250,000) in Australia and approximately $638,000 (Approximately €549,000) (2017: $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, 2018, 2017 and 2016. 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, 2018 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, 2018 | |
Supplemental Cash Flow Information [Abstract] | |
Supplemental Cash Flow Information | Note 7 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. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Sep. 30, 2018 | |
Accounting Policies [Abstract] | |
Use of Estimates | a) Use of Estimates The preparation of financial statements in accordance with United States GAAP 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, 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 Expenses | d) 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. Manufacturing costs are expensed as incurred in accordance with Accounting Standard Codification (“ASC”) 730, Research and Development, as these materials have no alternative future use outside of their intended use. 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. |
Research and Development Incentive Income | e) 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 | f) 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, 2018, loss per share excludes 7,185,296 (2017 – 6,711,339) potentially dilutive common shares related to outstanding options and warrants, as their effect was anti-dilutive. |
Financial Instruments | g) 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 | h) 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. |
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 Financial Accounting Standards Board (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, 2018 and 2017, the Company did not have any Level 3 assets or liabilities. |
Recent Accounting Pronouncements | m) Recent Accounting Pronouncements Recently Adopted Accounting Pronouncements In November 2015, the FASB issued Accounting Standards Update (“ASU”) No. 2015-17 “ Income Taxes: Balance Sheet Classification of Deferred Taxes In March 2016, the FASB issued ASC 2016-09, “ Compensation – Stock Compensation (Topic 718) – Improvements to Employee Share-Based Payment Accounting In November 2016, the FASB issued ASU 2016-18, “Statement of Cash Flows (Topic 230): Restricted Cash” (“ASU 2016-18”). ASU 2016-18 requires that a statement of cash flows explain the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. Therefore, amounts generally described as restricted cash and restricted cash equivalents should be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. ASU 2016-18 is effective for fiscal years beginning after December 15, 2017. Early adoption is permitted. The Company early adopted this standard on October 1, 2017. The adoption of this standard did not have any material affect on the Company’s consolidated financial statements. The SEC staff issued Staff Accounting Bulletin (“SAB”) 118, which provides guidance on accounting for the tax effects of the U.S. tax reform announced on December 22, 2017 by the U.S. Government commonly referred to as the Tax Cuts and Jobs Act. SAB 118 provides a measurement period that should not extend beyond one year from the U.S. tax reform enactment date for companies to complete the accounting under Accounting Standards Codification (“ASC”) 740. In accordance with SAB 118, a company must reflect the income tax effects of those aspects of the U.S. tax reform for which the accounting under ASC 740 is complete. Specifically, the Company was required to revalue its U.S. deferred tax assets and liabilities due to the federal income tax rate reduction from 35 percent to 21 percent. Since the Company has provided a full valuation allowance against its deferred tax assets, the revaluation of the deferred tax assets did not have a material impact on any period presented. 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 new guidance is effective for the Company on a prospective basis beginning on October 1, 2018. 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 February 2016, the FASB issued Accounting Standards Update No. 2016-02, Leases In May 2017, the FASB issued 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. In June 2018, the FASB issued ASU 2018-07, Compensation-Stock Compensation (Topic 718), Improvements to Nonemployee Share-based Payments (“ASU 2018-07”). This ASU expands the scope of Topic 718 to include share-based payment transactions for acquiring goods and services from nonemployees. The effective date for the standard is for interim periods in fiscal years beginning after December 15, 2018, with early adoption permitted, but no earlier than the Company’s adoption date of Topic 606. The new guidance is effective for the Company beginning on October 1, 2019. The new guidance is required to be applied retrospectively with the cumulative effect recognized at the date of initial application. The Company is currently evaluating the effect ASU 2018-07 will have on the consolidated financial statements. 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, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of lease commitments | The Company has entered into an office lease agreement expiring March 31, 2019. The Company is committed to lease commitments as follows: Fiscal year ending September 30, 2019 $ 70,022 $ 70,022 |
Schedule of 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 Issued 350,000 $ 4.19 Exercised (756,143 ) $ 2.96 Expired (524,787 ) $ 3.00 Balance, September 30, 2018 678,379 $ 2.87 At September 30, 2018, the Company had 678,379 share purchase warrants outstanding, with a weighted average exercise price of $2.87 as follows: Number Exercise Price Expiry Date 30,000 $ 4.00 February 24, 2019 277,127 $ 1.20 March 13, 2019 1,252 $ 1.68 March 13, 2019 12,500 $ 1.24 May 31, 2019 7,500 $ 1.04 May 31, 2019 350,000 $ 4.19 June 30, 2021 678,379 |
Schedule of outstanding stock purchase options | 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 ) 4.09 Outstanding at September 30, 2017 5,092,030 $ 4.13 Granted 1,730,000 $ 2.71 $ 2.09 Forfeited (164,280 ) $ 3.66 Exercised (150,833 ) $ 1.18 Outstanding at September 30, 2018 6,506,917 $ 3.83 Exercisable at September 30, 2018 4,108,028 $ 3.75 Exercisable at September 30, 2017 3,326,223 $ 3.10 |
Schedule of stock options outstanding | At September 30, 2018, 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 $ 565,000 4.76 37,500 37,500 $ 1.20 May 7, 2024 57,375 5.60 125,000 125,000 $ 1.32 May 8, 2024 176,250 5.60 618,750 618,750 $ 0.92 April 2, 2025 1,119,938 6.51 29,167 29,167 $ 1.44 June 8, 2025 37,625 6.69 50,000 50,000 $ 1.76 June 15, 2025 48,500 6.71 253,750 253,750 $ 5.04 September 18, 2025 — 6.97 1,500 1,500 $ 5.64 September 30, 2025 — 7.00 31,250 31,250 $ 5.68 October 2, 2025 — 7.01 25,000 25,000 $ 8.98 October 16, 2025 — 7.04 1,500 1,500 $ 5.57 December 31, 2025 — 7.25 1,500 1,500 $ 4.90 March 31, 2026 — 7.50 1,500 1,500 $ 5.66 April 27, 2026 — 7.57 1,500 1,500 $ 6.11 June 30, 2026 — 7.75 379,625 253,083 $ 6.26 July 5, 2026 — 7.76 861,429 574,286 $ 7.06 July 18, 2026 — 7.80 906,696 906,696 $ 3.28 September 22, 2026 — 7.98 60,000 39,999 $ 3.63 October 3, 2026 — 8.01 8,750 8,750 $ 4.35 December 9, 2026 — 8.19 50,000 16,667 $ 5.39 February 7, 2027 — 8.36 40,000 23,333 $ 5.26 February 17, 2027 — 8.38 774,166 389,170 $ 5.92 May 12, 2027 — 8.61 12,500 5,209 $ 3.42 August 9, 2027 — 8.86 15,000 6,250 $ 4.33 September 19, 2027 — 8.97 540,834 135,834 $ 3.30 December 13, 2027 — 9.20 50,000 — $ 2.60 March 2, 2028 6,500 9.42 200,000 33,334 $ 2.72 March 19, 2028 2,000 9.47 780,000 25,000 $ 2.30 May 15, 2028 335,400 9.62 150,000 12,500 $ 2.70 August 6, 2028 4,500 9.85 6,506,917 4,108,028 $ 2,353,088 |
Schedule of statement of operations | These amounts have been included in general and administrative expenses and research and development expenses on the Company’s statement of operations as follows: 2018 2017 2016 General and administrative $ 2,699,557 $ 2,017,199 $ 3,208,220 Research and development 2,817,447 2,118,371 1,854,047 Total share based compensation $ 5,517,004 $ 4,135,570 $ 5,062,267 |
Schedule of weighted average assumptions | 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: 2018 2017 2016 Risk-free interest rate 2.73 % 2.11 % 1.28 % Expected life of options (years) 5.60 6.86 5.88 Annualized volatility 106.45 % 111.58 % 114.75 % Dividend rate 0.00 % 0.00 % 0.00 % |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Sep. 30, 2018 | |
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: 2018 2017 2016 Assumed Tax rate 21 % 34 % 34 % Net operating loss carryforwards $ 11,123,000 $ 14,240,000 $ 11,223,000 Research and development tax credits 1,605,000 1,344,000 1,036,000 Foreign exchange and other 13,000 (25,000 ) (25,000 ) Unpaid charges 72,000 28,000 152,000 Intangible asset costs 28,000 51,000 57,000 Stock-based compensation 3,152,000 3,394,000 2,004,000 Valuation allowance for deferred tax assets (15,993,000 ) (19,032,000 ) (14,447,000 ) Net deferred tax assets $ — $ — $ — |
Schedule of provision for income taxes | The provision for income taxes differ from the amount established using the statutory income tax rate as follows: 2018 2017 2016 Income benefit at statutory rate $ (4,215,000 ) $ (4,577,000 ) $ (5,010,000 ) Foreign income taxed at other rates (173,000 ) 68,000 132,000 Permanent differences Non-deductible finance and accretion expenses — — 5,000 Non-deductible compensation costs — — 738,000 Other permanent differences 1,000 2,000 — Research and development tax credit (77,000 ) (23,000 ) 628,000 Expiry of foreign net operating loss carryforwards — — 333,000 Adjustment and true up to prior years’ tax provision 336,000 (55,000 ) 176,000 Effect of changes in tax rates 7,166,000 — (11,000 ) Change in valuation allowance related to current year provision (3,038,000 ) 4,585,000 3,009,000 Income Tax Recovery $ — $ — $ — |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Details Narrative) - shares | 12 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Accounting Policies [Abstract] | ||
Loss per share for potentially dilutive common shares | 7,185,296 | 6,711,339 |
Other Income (Details Narrative
Other Income (Details Narrative) - USD ($) | 12 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | |
Grant income | $ 149,055 | $ 140,942 | $ 141,195 | |
Research & Development Incentive Program (Australian Government) [Member] | ||||
Grant income | 1,629,513 | 2,022,902 | 571,093 | |
Clinical Study Grant [Member] | ||||
Awarded grant funding amount | 149,055 | |||
Grant income | 597,886 | |||
Preclinical Study Grant [Member] | ||||
Awarded grant funding amount | $ 140,942 | $ 141,195 | ||
Grant income | $ 286,455 |
Equity Offering Agreements (Det
Equity Offering Agreements (Details Narrative) - USD ($) | Jul. 06, 2018 | Oct. 21, 2015 | Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 |
Gross sale proceeds | $ 8,173,920 | $ 27,270,674 | $ 3,167,420 | ||
2015 Purchase Agreement [Member] | Lincoln Park Capital Fund, LLC [Member] | |||||
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 | 2,398,261 | 7,109,956 | 452,437 | |
Pro rata basic number of shares obligated to purchase | 89,799 | ||||
Number of shares issued for aggregate purchase price | 2,383,580 | 7,060,976 | 450,000 | ||
Number of shares issued for aggregate purchase price, value | $ 8,173,920 | $ 27,270,674 | $ 1,357,800 | ||
Number of shares issued for commitment | 14,681 | 48,980 | 2,437 | ||
Amount of shares remain available | $ 13,197,607 | ||||
Equity Offering Sales Agreement [Member] | Cantor Fitzgerald & Co [Member] | |||||
Gross sale proceeds | $ 50,000,000 | ||||
Percentage of gross proceeds from sales | 3.00% | ||||
Legal and accounting fees | $ 101,133 |
Commitments (Details)
Commitments (Details) | Sep. 30, 2018USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
2,019 | $ 70,022 |
Operating leases, future minimum payments receivable | $ 70,022 |
Commitments (Details 1)
Commitments (Details 1) - Purchase Warrants [Member] - $ / shares | 12 Months Ended | ||
Sep. 30, 2018 | 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 | 1,609,309 | 1,809,309 | 4,272,890 |
Exercised | (756,143) | (200,000) | (2,463,581) |
Issued | 350,000 | ||
Expired | (524,787) | ||
Balance, at end | 678,379 | 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 | $ 2.66 | $ 2.70 | $ 2.11 |
Exercised | 2.96 | 3 | 1.67 |
Issued | 4.19 | ||
Expired | 3 | ||
Balance, at end | $ 2.87 | $ 2.66 | $ 2.70 |
Commitments (Details 2)
Commitments (Details 2) | 12 Months Ended |
Sep. 30, 2018$ / sharesshares | |
First Purchase Warrants [Member] | |
Number | 30,000 |
Exercise Price | $ / shares | $ 4 |
Expiry Date | Feb. 24, 2019 |
Second Purchase Warrants [Member] | |
Number | 277,127 |
Exercise Price | $ / shares | $ 1.20 |
Expiry Date | Mar. 13, 2019 |
Third Purchase Warrants [Member] | |
Number | 1,252 |
Exercise Price | $ / shares | $ 1.68 |
Expiry Date | Mar. 13, 2019 |
Four Purchase Warrants [Member] | |
Number | 12,500 |
Exercise Price | $ / shares | $ 1.24 |
Expiry Date | May 31, 2019 |
Five Purchase Warrants [Member] | |
Number | 7,500 |
Exercise Price | $ / shares | $ 1.04 |
Expiry Date | May 31, 2019 |
Six Purchase Warrants [Member] | |
Number | 350,000 |
Exercise Price | $ / shares | $ 4.19 |
Expiry Date | Jun. 30, 2021 |
Purchase Warrants [Member] | |
Number | 678,379 |
Commitments (Details 3)
Commitments (Details 3) - 2015 Omnibus Incentive Plan [Member] - $ / shares | 12 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |||
Outstanding at beginning | 5,092,030 | 4,199,000 | 1,822,500 |
Granted | 1,730,000 | 1,107,500 | 2,401,500 |
Expired | (25,000) | ||
Forfeited | (164,280) | (214,470) | |
Exercised | (150,833) | ||
Outstanding at ending | 6,506,917 | 5,092,030 | 4,199,000 |
Exercisable at ending | 4,108,028 | 3,326,223 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Roll Forward] | |||
Outstanding at beginning | $ 4.13 | $ 3.76 | $ 2 |
Granted | 2.71 | 5.51 | 5.22 |
Expired | 14.68 | ||
Forfeited | 3.66 | 4.09 | |
Exercised | 1.18 | ||
Outstanding at ending | 3.83 | 4.13 | 3.76 |
Exercisable at ending | 3.75 | 3.10 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Weighted Average Grant Date Fair Value [Roll Forward] | |||
Granted | $ 2.09 | $ 5.44 | $ 4.38 |
Commitments (Details 4)
Commitments (Details 4) - USD ($) | 12 Months Ended | |||
Sep. 30, 2018 | 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 | $ 565,000 | |||
Remaining Contractual Life (in years) | 4 years 9 months 4 days | |||
Second Stock Option [Member] | ||||
Total Number of Shares | 37,500 | |||
Number of Vested Shares | 37,500 | |||
Exercise Price | $ 1.20 | |||
Expiry Date | May 7, 2024 | |||
Aggregate Intrinsic Value | $ 57,375 | |||
Remaining Contractual Life (in years) | 5 years 7 months 6 days | |||
Third Stock Option [Member] | ||||
Total Number of Shares | 125,000 | |||
Number of Vested Shares | 125,000 | |||
Exercise Price | $ 1.32 | |||
Expiry Date | May 8, 2024 | |||
Aggregate Intrinsic Value | $ 176,250 | |||
Remaining Contractual Life (in years) | 5 years 7 months 6 days | |||
Four Stock Option [Member] | ||||
Total Number of Shares | 618,750 | |||
Number of Vested Shares | 618,750 | |||
Exercise Price | $ 0.92 | |||
Expiry Date | Apr. 2, 2025 | |||
Aggregate Intrinsic Value | $ 1,119,938 | |||
Remaining Contractual Life (in years) | 6 years 6 months 4 days | |||
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 | $ 37,625 | |||
Remaining Contractual Life (in years) | 6 years 8 months 8 days | |||
Six Stock Option [Member] | ||||
Total Number of Shares | 50,000 | |||
Number of Vested Shares | 50,000 | |||
Exercise Price | $ 1.76 | |||
Expiry Date | Jun. 15, 2025 | |||
Aggregate Intrinsic Value | $ 48,500 | |||
Remaining Contractual Life (in years) | 6 years 8 months 16 days | |||
Seven Stock Option [Member] | ||||
Total Number of Shares | 253,750 | |||
Number of Vested Shares | 253,750 | |||
Exercise Price | $ 5.04 | |||
Expiry Date | Sep. 18, 2025 | |||
Aggregate Intrinsic Value | ||||
Remaining Contractual Life (in years) | 6 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) | 7 years | |||
Nine Stock Option [Member] | ||||
Total Number of Shares | 31,250 | |||
Number of Vested Shares | 31,250 | |||
Exercise Price | $ 5.68 | |||
Expiry Date | Oct. 2, 2025 | |||
Aggregate Intrinsic Value | ||||
Remaining Contractual Life (in years) | 7 years 4 days | |||
Ten Stock Option [Member] | ||||
Total Number of Shares | 25,000 | |||
Number of Vested Shares | 25,000 | |||
Exercise Price | $ 8.98 | |||
Expiry Date | Oct. 16, 2025 | |||
Aggregate Intrinsic Value | ||||
Remaining Contractual Life (in years) | 7 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) | 7 years 3 months | |||
Twelve Stock Option [Member] | ||||
Total Number of Shares | 1,500 | |||
Number of Vested Shares | 1,500 | |||
Exercise Price | $ 4.90 | |||
Expiry Date | Mar. 31, 2026 | |||
Aggregate Intrinsic Value | ||||
Remaining Contractual Life (in years) | 7 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) | 7 years 6 months 25 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) | 7 years 9 months | |||
Sixteen Stock Option [Member] | ||||
Total Number of Shares | 379,625 | |||
Number of Vested Shares | 253,083 | |||
Exercise Price | $ 6.26 | |||
Expiry Date | Jul. 5, 2026 | |||
Aggregate Intrinsic Value | ||||
Remaining Contractual Life (in years) | 7 years 9 months 4 days | |||
Seventeen Stock Option [Member] | ||||
Total Number of Shares | 861,429 | |||
Number of Vested Shares | 574,286 | |||
Exercise Price | $ 7.06 | |||
Expiry Date | Jul. 18, 2026 | |||
Aggregate Intrinsic Value | ||||
Remaining Contractual Life (in years) | 7 years 9 months 18 days | |||
Eighteen Stock Option [Member] | ||||
Total Number of Shares | 906,696 | |||
Number of Vested Shares | 906,696 | |||
Exercise Price | $ 3.28 | |||
Expiry Date | Sep. 22, 2026 | |||
Aggregate Intrinsic Value | ||||
Remaining Contractual Life (in years) | 7 years 11 months 23 days | |||
Nineteen Stock Option [Member] | ||||
Total Number of Shares | 60,000 | |||
Number of Vested Shares | 39,999 | |||
Exercise Price | $ 3.63 | |||
Expiry Date | Oct. 3, 2026 | |||
Aggregate Intrinsic Value | ||||
Remaining Contractual Life (in years) | 8 years 4 days | |||
Twenty Stock Option [Member] | ||||
Total Number of Shares | 8,750 | |||
Number of Vested Shares | 8,750 | |||
Exercise Price | $ 4.35 | |||
Expiry Date | Dec. 9, 2026 | |||
Aggregate Intrinsic Value | ||||
Remaining Contractual Life (in years) | 8 years 2 months 8 days | |||
Twenty One Stock Option [Member] | ||||
Total Number of Shares | 50,000 | |||
Number of Vested Shares | 16,667 | |||
Exercise Price | $ 5.39 | |||
Expiry Date | Feb. 7, 2027 | |||
Aggregate Intrinsic Value | ||||
Remaining Contractual Life (in years) | 8 years 4 months 10 days | |||
Twenty Two Stock Option [Member] | ||||
Total Number of Shares | 40,000 | |||
Number of Vested Shares | 23,333 | |||
Exercise Price | $ 5.26 | |||
Expiry Date | Feb. 17, 2027 | |||
Aggregate Intrinsic Value | ||||
Remaining Contractual Life (in years) | 8 years 4 months 17 days | |||
Twenty Three Stock Option [Member] | ||||
Total Number of Shares | 774,166 | |||
Number of Vested Shares | 389,170 | |||
Exercise Price | $ 5.92 | |||
Expiry Date | May 12, 2027 | |||
Aggregate Intrinsic Value | ||||
Remaining Contractual Life (in years) | 8 years 7 months 10 days | |||
Twenty Four Stock Option [Member] | ||||
Total Number of Shares | 12,500 | |||
Number of Vested Shares | 5,209 | |||
Exercise Price | $ 3.42 | |||
Expiry Date | Aug. 9, 2027 | |||
Aggregate Intrinsic Value | ||||
Remaining Contractual Life (in years) | 8 years 10 months 10 days | |||
Twenty Five Stock Option [Member] | ||||
Total Number of Shares | 15,000 | |||
Number of Vested Shares | 6,250 | |||
Exercise Price | $ 4.33 | |||
Expiry Date | Sep. 19, 2027 | |||
Aggregate Intrinsic Value | ||||
Remaining Contractual Life (in years) | 8 years 11 months 19 days | |||
Twenty Six Stock Option [Member] | ||||
Total Number of Shares | 540,834 | |||
Number of Vested Shares | 135,834 | |||
Exercise Price | $ 3.30 | |||
Expiry Date | Dec. 13, 2027 | |||
Aggregate Intrinsic Value | ||||
Remaining Contractual Life (in years) | 9 years 2 months 12 days | |||
Twenty Seven Stock Option [Member] | ||||
Total Number of Shares | 50,000 | |||
Number of Vested Shares | ||||
Exercise Price | $ 2.60 | |||
Expiry Date | Mar. 2, 2028 | |||
Aggregate Intrinsic Value | $ 6,500 | |||
Remaining Contractual Life (in years) | 9 years 5 months 1 day | |||
Twenty Eight Stock Option [Member] | ||||
Total Number of Shares | 200,000 | |||
Number of Vested Shares | 33,334 | |||
Exercise Price | $ 2.72 | |||
Expiry Date | Mar. 19, 2028 | |||
Aggregate Intrinsic Value | $ 2,000 | |||
Remaining Contractual Life (in years) | 9 years 5 months 19 days | |||
Twenty Nine Stock Option [Member] | ||||
Total Number of Shares | 780,000 | |||
Number of Vested Shares | 25,000 | |||
Exercise Price | $ 2.30 | |||
Expiry Date | May 15, 2028 | |||
Aggregate Intrinsic Value | $ 335,400 | |||
Remaining Contractual Life (in years) | 9 years 7 months 13 days | |||
Thirty Stock Option [Member] | ||||
Total Number of Shares | 150,000 | |||
Number of Vested Shares | 12,500 | |||
Exercise Price | $ 2.70 | |||
Expiry Date | Aug. 6, 2028 | |||
Aggregate Intrinsic Value | $ 4,500 | |||
Remaining Contractual Life (in years) | 9 years 10 months 6 days | |||
2015 Omnibus Incentive Plan [Member] | ||||
Total Number of Shares | 6,506,917 | 5,092,030 | 4,199,000 | 1,822,500 |
Number of Vested Shares | 4,108,028 | |||
Exercise Price | $ 3.83 | $ 4.13 | $ 3.76 | $ 2 |
Aggregate Intrinsic Value | $ 2,353,088 |
Commitments (Details 5)
Commitments (Details 5) - USD ($) | 12 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | |
Total share based compensation | $ 5,517,004 | $ 4,135,570 | $ 5,062,267 |
General and administrative [Member] | |||
Total share based compensation | 2,699,557 | 2,017,199 | 3,208,220 |
Research and development [Member] | |||
Total share based compensation | $ 2,817,447 | $ 2,118,371 | $ 1,854,047 |
Commitments (Details 6)
Commitments (Details 6) | 12 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |||
Risk-free interest rate | 2.73% | 2.11% | 1.28% |
Expected life of options (years) | 5 years 7 months 6 days | 6 years 10 months 10 days | 5 years 10 months 17 days |
Annualized volatility | 106.45% | 111.58% | 114.75% |
Dividend rate | 0.00% | 0.00% | 0.00% |
Commitments (Details Narrative)
Commitments (Details Narrative) - USD ($) | 12 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | |
Weighted average exercise price | $ 2.87 | ||
Remaining stock based compensation | $ 6,827,054 | ||
Number of warrants exercised | 678,379 | ||
Share based compensation | $ 5,517,004 | $ 4,135,570 | $ 5,062,267 |
Share based compensation with the vesting of restricted stock | 0 | 610,000 | |
General and administrative [Member] | |||
Share based compensation | 2,699,557 | 2,017,199 | 3,208,220 |
Rent expense | $ 151,405 | $ 127,993 | $ 125,317 |
Number of options granted to consultants | 350,000 | ||
Number of options converted to warrants | 350,000 | ||
Purchase Warrants [Member] | |||
Number of warrant exercisable | 678,379 | ||
Weighted average exercise price | $ 3 | ||
Expiration date | Jul. 5, 2018 | ||
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 | ||
Number of share purchase warrants exercised | $ 737,393 | ||
Exercised price (in dollars per share) | $ 3 | ||
Number of share purchase warrants exercised | $ 18,750 | ||
Exercised price (in dollars per share) | $ 1.24 | ||
Number of common stock to be issued | 125,748 | ||
Number of additional common stock to be issued | 80,981 | ||
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 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) | 12 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | |
Income Tax Disclosure [Abstract] | |||
Assumed Tax rate | 21.00% | 34.00% | 34.00% |
Net operating loss carryforwards | $ 11,123,000 | $ 14,240,000 | $ 11,223,000 |
Research and development tax credits | 1,605,000 | 1,344,000 | 1,036,000 |
Foreign exchange and other | 13,000 | (25,000) | (25,000) |
Unpaid charges | 72,000 | 28,000 | 152,000 |
Intangible asset costs | 28,000 | 51,000 | 57,000 |
Stock-based compensation | 3,152,000 | 3,394,000 | 2,004,000 |
Valuation allowance for deferred tax assets | (15,993,000) | (19,032,000) | (14,447,000) |
Net deferred tax assets |
Income Taxes (Details 1)
Income Taxes (Details 1) - USD ($) | 12 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | |
Income Tax Disclosure [Abstract] | |||
Income benefit at statutory rate | $ (4,215,000) | $ (4,577,000) | $ (5,010,000) |
Foreign income taxed at other rates | (173,000) | 68,000 | 132,000 |
Permanent differences | |||
Non-deductible finance and accretion expenses | 5,000 | ||
Non-deductible compensation costs | 738,000 | ||
Other permanent differences | 1,000 | 2,000 | |
Research and development tax credit | (77,000) | (23,000) | 628,000 |
Expiry of foreign net operating loss carryforwards | 333,000 | ||
Adjustment and true up to prior years' tax provision | 336,000 | (55,000) | 176,000 |
Effect of changes in tax rates | 7,166,000 | (11,000) | |
Change in valuation allowance related to current year provision | (3,038,000) | 4,585,000 | 3,009,000 |
Income Tax Recovery |
Income Taxes (Details Narrative
Income Taxes (Details Narrative) - USD ($) | 12 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | |
Operating loss carry-forwards, expiration year | 2,027 | ||
Previous corporate income tax rate | 35.00% | ||
Revised corporate income tax rate | 21.00% | ||
United States [Member] | |||
Operating loss carry-forwards | $ 50,557,000 | $ 41,000,000 | $ 33,000,000 |
Germany [Member] | |||
Operating loss carry-forwards | 638,000 | 13,000 | |
Germany [Member] | Euro Member Countries, Euro | |||
Operating loss carry-forwards | 549,000 | ||
Australia [Member] | |||
Operating loss carry-forwards | 986,000 | $ 850,000 | $ 250,000 |
Australia [Member] | Australia, Dollars | |||
Operating loss carry-forwards | $ 1,365,000 |
Supplemental Cash Flow Inform_2
Supplemental Cash Flow Information (Details Narrative) | 12 Months Ended |
Sep. 30, 2016USD ($)shares | |
Amount of shares issued | $ 167,415 |
Securities Purchase Agreement [Member] | Senior Convertible Debentures Due March 18, 2044 [Member] | |
Amount of shares issued | $ 6,162 |
Number of shares issued | shares | 6,162 |