Document and Entity Information
Document and Entity Information | 12 Months Ended |
Dec. 31, 2020shares | |
Document and Entity Information [Abstract] | |
Entity Registrant Name | Neovasc Inc. |
Document Registration Statement | false |
Document Annual Report | true |
Entity Incorporation, State or Country Code | CA |
Entity Central Index Key | 0001399708 |
Document Type | 40-F |
Document Period End Date | Dec. 31, 2020 |
Amendment Flag | false |
Current Fiscal Year End Date | --12-31 |
Entity Current Reporting Status | Yes |
Entity Emerging Growth Company | false |
Title of 12(b) Security | Common Shares, No Par Value |
Trading Symbol | NVCN |
Security Exchange Name | NASDAQ |
Entity Interactive Data Current | Yes |
Entity Common Stock, Shares Outstanding | 28,928,916 |
Document Fiscal Year Focus | 2020 |
Document Fiscal Period Focus | FY |
Consolidated Statements of Fina
Consolidated Statements of Financial Position - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Current assets | |||
Cash and cash equivalents | $ 12,935,860 | $ 5,292,833 | $ 9,242,809 |
Accounts receivable | 987,057 | 715,696 | 647,143 |
Finance lease receivable | 95,849 | 86,764 | |
Inventory | 839,472 | 618,650 | 318,135 |
Research and development supplies | 167,378 | 671,845 | 1,274,653 |
Prepaid expenses and other assets | 705,471 | 630,042 | 591,236 |
Total current assets | 15,731,087 | 8,015,830 | 12,073,976 |
Non-current assets | |||
Restricted cash | 470,460 | 462,874 | 439,736 |
Right-of-use asset | 830,551 | 720,473 | |
Finance lease receivable | 42,841 | 138,690 | |
Property and equipment | 803,280 | 767,973 | 813,628 |
Total non-current assets | 2,147,132 | 2,090,010 | 1,253,364 |
Total assets | 17,878,219 | 10,105,840 | 13,327,340 |
Current liabilities | |||
Accounts payable and accrued liabilities | 7,243,500 | 7,794,456 | 4,610,560 |
Lease liabilities | 342,910 | 436,352 | |
Total current liabilities | 7,662,568 | 14,721,558 | 6,033,784 |
Non-Current Liabilities | |||
Accounts payable and accrued liabilities | 1,186,601 | 2,241,979 | |
Lease liabilities | 596,881 | 468,527 | |
2017 Derivative warrant liability | 190,303 | ||
Total non-current liabilities | 8,238,134 | 9,830,047 | 15,626,394 |
Total liabilities | 15,900,702 | 24,551,605 | 21,660,178 |
Equity | |||
Share capital | 369,775,383 | 328,460,681 | 304,460,533 |
Contributed surplus | 35,045,056 | 29,766,225 | 26,260,806 |
Accumulated other comprehensive loss | (7,615,717) | (6,140,507) | (7,653,028) |
Deficit | (395,227,205) | (366,532,164) | (331,401,149) |
Total equity | 1,977,517 | (14,445,765) | (8,332,838) |
Total liabilities and equity | 17,878,219 | 10,105,840 | 13,327,340 |
2017 Convertible notes | |||
Current liabilities | |||
Convertible notes | 5,400,189 | 1,423,224 | |
2017 Convertible Notes | 5,400,189 | 1,423,224 | |
Non-Current Liabilities | |||
Convertible notes | 13,194,112 | ||
2017 Convertible Notes | $ 13,194,112 | ||
2019 Convertible notes | |||
Current liabilities | |||
Convertible notes | 38,633 | 1,090,561 | |
Non-Current Liabilities | |||
Convertible notes | 6,156,724 | 8,174,919 | |
2019 Convertible Notes | 6,156,724 | $ 8,174,919 | |
2020 Convertible notes | |||
Current liabilities | |||
Convertible notes | 37,525 | ||
Non-Current Liabilities | |||
2020 Convertible notes and warrants and derivative warrant liabilities | $ 1,484,529 |
Consolidated Statements of Loss
Consolidated Statements of Loss and Comprehensive Loss - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
REVENUE | |||
REVENUE | $ 1,957,362 | $ 2,092,032 | $ 1,749,133 |
COST OF GOODS SOLD | 446,239 | 458,436 | 366,258 |
GROSS PROFIT | 1,511,123 | 1,633,596 | 1,382,875 |
EXPENSES | |||
Selling expenses | 2,196,803 | 1,645,985 | 1,353,165 |
General and administrative expenses | 14,081,153 | 10,013,732 | 16,438,936 |
Product development and clinical trials expenses | 20,401,595 | 20,020,959 | 16,001,464 |
TOTAL EXPENSES | 36,679,551 | 31,680,676 | 33,793,565 |
OPERATING LOSS | (35,168,428) | (30,047,080) | (32,410,690) |
OTHER (EXPENSE)/ INCOME | |||
Interest and other income | 1,394,035 | 184,912 | 183,065 |
Interest and prepayment penalty expense | (1,035,957) | (133,082) | |
Impairment on right-of-use asset | (104,544) | ||
Gain on sale of assets | 238,907 | ||
Loss on foreign exchange | (256,585) | (74,209) | (175,054) |
Unrealized gain/(loss) on warrants, derivative liability warrants and convertible notes | 8,528,255 | (3,235,591) | (814,827) |
Realized gain/(loss) on exercise or conversion of warrants, derivative liability warrants and convertible notes | 814,083 | (1,692,628) | (28,003,594) |
Amortization of deferred loss | (3,494,501) | (46,894,189) | |
TOTAL OTHER (EXPENSE)/ INCOME | 5,949,330 | (5,055,142) | (75,465,692) |
LOSS BEFORE TAX | (29,219,098) | (35,102,222) | (107,876,382) |
Tax recovery/(expense) | (524,057) | 28,793 | 107,093 |
LOSS FOR THE YEAR | (28,695,041) | (35,131,015) | (107,983,475) |
OTHER COMPREHENSIVE (LOSS)/INCOME FOR THE YEAR | |||
Fair market value changes in convertible note due to changes in own credit risk | (1,475,210) | 1,512,521 | (1,009,592) |
TOTAL OTHER COMPREHENSIVE INCOME FOR THE YEAR | (1,475,210) | 1,512,521 | (1,009,592) |
LOSS AND OTHER COMPREHENSIVE LOSS FOR THE YEAR | $ (30,170,251) | $ (33,618,494) | $ (108,993,067) |
LOSS PER SHARE | |||
Basic and diluted loss per share | $ (1.72) | $ (5.40) | $ (76.26) |
Consolidated Statements of Chan
Consolidated Statements of Changes in Equity - USD ($) | Share Capital | Contributed Surplus | Accumulated Other Comprehensive Loss | Deficit | Total |
Balance at Dec. 31, 2017 | $ 171,803,816 | $ 23,056,846 | $ (6,643,436) | $ (223,417,674) | $ (35,200,448) |
Issue of share capital on exercise of 2017 Warrants | 113,985,426 | 113,985,426 | |||
Issue of share capital on conversion of 2017 Notes | 18,582,374 | 18,582,374 | |||
Issue of share capital on exercise of options | 88,917 | (88,917) | |||
Share-based payments | 3,292,877 | 3,292,877 | |||
Transactions with owners during the year | 132,656,717 | 3,203,960 | 135,860,677 | ||
Loss for the year | (107,983,475) | (107,983,475) | |||
Other comprehensive loss for the year | (1,009,592) | (1,009,592) | |||
Balance at Dec. 31, 2018 | 304,460,533 | 26,260,806 | (7,653,028) | (331,401,149) | (8,332,838) |
Issue of share capital on public offering (net of share issuance costs) | 7,802,417 | 7,802,417 | |||
Issue of share capital on private placement (net of share issuance costs) | 1,664,662 | 1,664,662 | |||
Issue of share capital on exercise of 2017 Warrants | 1,437,131 | 1,437,131 | |||
Issue of share capital on conversion of 2017 Notes | 13,095,938 | 13,095,938 | |||
Issue of broker warrants | 315,611 | 315,611 | |||
Share-based payments | 3,189,808 | 3,189,808 | |||
Transactions with owners during the year | 24,000,148 | 3,505,419 | 27,505,567 | ||
Loss for the year | (35,131,015) | (35,131,015) | |||
Other comprehensive loss for the year | 1,512,521 | 1,512,521 | |||
Balance at Dec. 31, 2019 | 328,460,681 | 29,766,225 | (6,140,507) | (366,532,164) | (14,445,765) |
Issue of share capital on public offering (net of share issuance costs) | 31,765,981 | 31,765,981 | |||
Issue of share capital on conversion of 2017 Notes | 1,293,093 | 1,293,093 | |||
Issue of broker warrants and compensation warrants | (584,167) | 584,167 | |||
Issue of share capital on exchange of warrants | 8,687,479 | 8,687,479 | |||
Issue of share capital on exercise of options | 378 | (174) | 204 | ||
Issue of share capital on vesting of restricted share units | 151,938 | (151,938) | |||
Share-based payments | 4,846,776 | 4,846,776 | |||
Transactions with owners during the year | 41,314,702 | 5,278,831 | 46,593,533 | ||
Loss for the year | (28,695,041) | (28,695,041) | |||
Other comprehensive loss for the year | (1,475,210) | (1,475,210) | |||
Balance at Dec. 31, 2020 | $ 369,775,383 | $ 35,045,056 | $ (7,615,717) | $ (395,227,205) | $ 1,977,517 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
OPERATING ACTIVITIES | |||
Loss for the year | $ (28,695,041) | $ (35,131,015) | $ (107,983,475) |
Adjustments for: | |||
Depreciation | 768,101 | 641,621 | 384,126 |
Share-based payments | 4,905,812 | 3,189,808 | 3,292,877 |
Impairment of right-of-use asset | 75,407 | ||
Gain on sale of assets | (238,907) | ||
Loss on disposal of assets | 11,966 | 51,106 | |
Accrued employee termination expenses | 373,171 | ||
Accretion on collaboration, license and settlement agreement provision | 157,994 | 298,849 | 4,129,758 |
Unrealized (gain)/loss on warrants, derivative liability warrants and convertible notes | (8,528,255) | 3,235,591 | 814,827 |
Realized loss on exercise or conversion of warrants, derivative Liability warrants and convertible notes | (814,083) | 1,692,628 | 28,003,594 |
Amortization of deferred loss | 3,494,501 | 46,894,189 | |
Non-cash legal costs from financing activity | 1,565,224 | ||
Write-down accounts receivable | 64,600 | 489,449 | |
Income tax (recovery)/expense | (524,057) | 28,793 | 107,093 |
Interest income and expenses | (358,078) | (56,000) | (183,065) |
Cash applied to operating activities before change in non-cash working capital | (28,015,916) | (25,959,718) | (23,865,257) |
Net change in non-cash working capital items: | |||
Accounts receivable | (271,361) | (133,153) | 198,331 |
Inventory | (220,822) | (359,908) | 139,814 |
Research and development supplies | 504,467 | 662,201 | (59,393) |
Prepaid expenses and other assets | (75,429) | (167,336) | 282,091 |
Accounts payable and accrued liabilities | (704,587) | 3,979,669 | 504,655 |
Payment of amounts due on collaboration, license and settlement agreements | (1,250,000) | (2,150,000) | |
Net change in non-cash working capital | (2,017,732) | 1,831,473 | 1,065,498 |
Income tax and Interest paid and received: | |||
Income tax (paid)/recovered | 524,057 | (28,793) | 183,065 |
Interest (paid)/received | 67,735 | 184,912 | (178,054) |
Total of income tax, interest paid and received | 591,792 | 156,119 | 5,011 |
Net cash applied to operating activities | (29,441,856) | (23,972,126) | (22,794,748) |
INVESTING ACTIVITIES | |||
(Increase)/decrease in restricted cash | (7,586) | (23,138) | 38,524 |
Purchase of property and equipment | (341,767) | (243,501) | (190,382) |
Proceeds from sale of assets | 865,610 | ||
Net cash (applied to)/from investing activities | (349,353) | (266,639) | 713,752 |
FINANCING ACTIVITIES | |||
Proceeds from public offering net of share issuance costs | 35,397,547 | 8,118,030 | |
Proceeds from private placement | 5,000,000 | 11,483,496 | |
Proceeds from exercise of warrants | 4,973,035 | 1,200,400 | 13,816,648 |
Proceeds from government assistance | 1,328,338 | ||
Proceeds from exercise of options | 204 | ||
Repayment of 2017 convertible note | (2,897,000) | ||
Repayment of 2019 convertible note | (4,877,225) | ||
Interest payment on 2019 convertible note | (940,451) | ||
Payment of lease obligation | (550,212) | (513,137) | |
Net cash from financing activities | 37,434,236 | 20,288,789 | 13,816,648 |
NET CHANGE IN CASH AND CASH EQUIVALENTS | 7,643,027 | (3,949,976) | (8,264,348) |
CASH AND CASH EQUIVALENTS | |||
Beginning of the year | 5,292,833 | 9,242,809 | 17,507,157 |
End of the year | 12,935,860 | 5,292,833 | 9,242,809 |
Represented by: | |||
Cash and cash equivalents | $ 12,935,860 | $ 5,292,833 | $ 9,242,809 |
INCORPORATION AND GOING CONCERN
INCORPORATION AND GOING CONCERN | 12 Months Ended |
Dec. 31, 2020 | |
INCORPORATION AND GOING CONCERN | |
INCORPORATION AND GOING CONCERN | 1. INCORPORATION AND GOING CONCERN (a) Business description Neovasc Inc. (“Neovasc” or the “Company”) is a company incorporated and domiciled in Canada. The Company was incorporated as Medical Ventures Corp. under the Company Act (British Columbia) on November 2, 2000 and was continued under the Canada Business Corporations Act on April 19, 2002. On July 1, 2008, the Company changed its name to Neovasc Inc. Neovasc is the parent company. The consolidated financial statements of the Company as at December 31, 2020 and for the years ended December 31, 2020, 2019 and 2018 comprise the Company and its subsidiaries, all of which are wholly owned. The Company’s principal place of business is located at Suite 5138 – 13562 Maycrest Way, Richmond, British Columbia, V6V 2J7 and the Company’s registered office is located at Suite 2600 – 595 Burrard Street, Vancouver, British Columbia, V7X 1L3, Canada. The Company's shares are listed on the Toronto Stock Exchange (TSX:NVCN) and the Nasdaq Capital Market (NASDAQ:NVCN). Neovasc is a specialty medical device company that develops, manufactures and markets products for the rapidly growing cardiovascular marketplace. Its products include the Neovasc Reducer TM (“Reducer”), for the treatment of refractory angina, which is not currently commercially available in the United States (2 U.S. patients have been treated under Compassionate Use) and has been commercially available in Europe since 2015, and the Tiara TM (“Tiara”), for the transcatheter treatment of mitral valve disease, which is currently under clinical investigation in the United States, Canada, Israel and Europe. (b) Going concern and uncertainty As at December 31, 2020, the Company had approximately $12.9 million in cash and cash equivalents being sufficient cash on hand to sustain operations until May 2021 at the current burn rate. In addition, COVID-19 has impacted the Company’s ability to generate revenue, enroll patients in clinical studies, complete certain Tiara development milestones on our expected schedule, and raise capital (the Company can give no assurance that it will be able to obtain the additional funds needed in the future, on terms agreeable to the Company, or at all). These circumstances indicate the existence of material uncertainty and cast substantial doubt about the Company’s ability to continue as a going concern. These consolidated financial statements do not reflect adjustments that would be necessary if the going concern assumption were not appropriate. Should the Company be unable to obtain additional capital in the future and the Company’s ability to continue as a going concern be impaired, material adjustments may be necessary to these consolidated financial statements. Subsequent to the year end, on February 12, 2021 the Company announced the closing of a registered direct offering (the “February 2021 Financing”) for aggregate gross proceeds of $72 million (see Note 26). The proceeds from the February 2021 Financing could be sufficient to extent the operations of the Company for up to three years at the current burn rate. However, given the FDA’s recent adverse panel decision and not approvable letter for the Reducer, it is likely that the Company will initiate programs that will require additional significant expenditures and that the cash needs of the Company will likely shorten the time the proceeds will meet the requirements of the Company. The going concern risk existed at December 31, 2020 but has been substantially mitigated by the proceeds from the February 2021 Financing. The Company will re-evaluate the going concern risk at each reporting period and will remove the going concern and uncertainty note when the Company can depend on the profitable commercialization of its products or is confident of obtaining additional debt or equity financing to fund ongoing operations until profitability is achieved. (c) Share consolidation (reverse stock split) On September 18, 2018, the Company effected a share consolidation (reverse stock split) of its issued and outstanding common shares in the capital of the Company (“Common Shares”) on the basis of one post-consolidation Common Share for every one hundred pre-consolidation Common Shares. On June 25, 2019, the Company effected a share consolidation (reverse stock split) of its issued and outstanding Common Shares the basis of one post-consolidation Common Share for every ten pre-consolidation Common Shares. All references in these consolidated financial statements to Common Shares and options have been retroactively adjusted to reflect the share consolidations. The number of 2017 Warrants (as defined below) and aggregate principal amount of 2017 Notes, 2019 Notes and 2020 Notes (as defined below) were not affected by the consolidations, but the Common Shares issuable upon exercise of the 2017 Warrants or conversion of the 2017 Notes will be adjusted proportionally to each share consolidation ratio. (d) Nasdaq listing On August 22, 2019, the Company received written notification (the “Market Value Notification Letter”) from the Nasdaq Listing Qualifications Department notifying the Company that it was not in compliance with the $35 million minimum market value requirement set forth in the Nasdaq Marketplace Rules. In accordance with Nasdaq Listing Rule 5810(c)(3)(C), the Company was provided 180 calendar days, or until February 17, 2020, to regain compliance. The Company did not regain compliance by February 17, 2020. On February 19, 2020, the Company received notice from the Listing Qualifications Staff (the “Staff”) of The Nasdaq Stock Market LLC (“Nasdaq”) indicating that the Staff had determined to delist the Company’s common shares from Nasdaq unless the Company requests a hearing before the Nasdaq Hearings Panel. On February 26, 2020, the Company requested such a hearing and the date of the hearing was set by the Nasdaq for April 2, 2020. On April 30, 2020, the Panel granted the Company’s request for an extension through August 17, 2020 to evidence compliance with the $35 million minimum market value of listed securities requirement for continued listing on the Nasdaq. On June 25, 2020, the Nasdaq Notice confirmed that the Company has regained compliance with Listing Rule 5550(a)(2) pursuant to Listing Rule 5810 as the Company’s market value exceeded $35 million for 10 consecutive business days between May 29, 2020 through June 11, 2020. On December 10, 2020, the Company received written notification (the “Market Value Notification Letter”) from the Nasdaq Listing Qualifications Department notifying the Company that it was not in compliance with the $35 million minimum market value requirement set forth in the Nasdaq Marketplace Rules. In accordance with Nasdaq Listing Rule 5810(c)(3)(C), the Company was provided 180 calendar days, or until June 8, 2021, to regain compliance. On December 14, 2020 the Company received written notification (the "Bid Price Notification Letter") from the Nasdaq Listing Qualifications Department notifying the Company that it was not in compliance with the $1.00 minimum bid price requirement set forth in the Nasdaq Marketplace Rules. In accordance with Nasdaq Listing Rule 5810(c)(3)(A), the Company was provided 180 calendar days, or until June 14, 2021, to regain compliance. On February 9, 2021, the Company announced that it had received written notification from the Nasdaq notifying the Company that it has regained compliance with the minimum bid price requirement under Nasdaq Listing Rule 5550(a)(2) pursuant to Nasdaq Listing Rule 5810 for continued listing on the Nasdaq. (see Note 26). On February 25, 2021, the Company announced that it had received written notification from the Nasdaq notifying the Company that it has regained compliance with the minimum market value requirement under Nasdaq Listing Rule 5550(b)(2) pursuant to Nasdaq Listing Rule 5810 for continued listing on the Nasdaq. (see Note 26). (e) Impacts of COVID-19 pandemic The Company is subject to risks and uncertainties as a result of the COVID-19 pandemic. The extent of the impact of the COVID-19 pandemic on the Company's business is highly uncertain and difficult to predict, as the response to the pandemic is in its early stages and information is rapidly evolving. Furthermore, capital markets and economies worldwide have also been negatively impacted by the COVID-19 pandemic, and it is possible that it could cause a local and/or global economic recession. Such economic disruption could have a material adverse effect on our business. The severity of the impact of the COVID-19 pandemic on the Company's business will depend on a number of factors, including, but not limited to, the duration and severity of the pandemic and the extent and severity of the impact on the Company's customers, all of which are uncertain and cannot be predicted. As at December 31, 2020, the Company has seen a marked impact on Reducer revenues due to restrictions on elective procedures which included Reducer implants. Furthermore, the Company’s recruitment to clinical trials and studies continues to be on temporary hold due to the pandemic restrictions and the Company’s ability to complete certain Tiara development milestones on our expected schedule has been impacted. The Company's future results of operations and liquidity could be adversely impacted by a decrease in Reducer sales, delays in payments of outstanding receivable amounts beyond normal payment terms, supply chain disruptions and uncertain demand, and the impact of any initiatives or programs that the Company may undertake to address financial and operational challenges faced by its customers. As of the date of issuance of these consolidated financial statements, the extent to which the COVID-19 pandemic may materially impact the Company's financial condition, liquidity, or results of operations is uncertain. |
BASIS OF PREPARATION
BASIS OF PREPARATION | 12 Months Ended |
Dec. 31, 2020 | |
BASIS OF PREPARATION | |
BASIS OF PREPARATION | 2. BASIS OF PREPARATION (a) Statement of compliance with IFRS These consolidated financial statements have been prepared in accordance with International Financial Reporting Standards (“IFRS”), as issued by the International Accounting Standards Board (“IASB”). (b) Basis of measurement The Company’s consolidated financial statements have been prepared on the historical cost basis except as explained in the accounting policies set out in Note 3. (c) Basis of consolidation The consolidated financial statements include the financial statements of the Company and its wholly-owned subsidiaries, Neovasc Medical Inc., Neovasc Tiara Inc., Neovasc (US) Inc., Neovasc Medical Ltd., B-Balloon Ltd. (which is in the process of being voluntarily liquidated), Neovasc GmbH, and Neovasc Management Inc. All intercompany balances and transactions have been eliminated upon consolidation. (d) Presentation of financial statements The Company has elected to present the 'Statement of Comprehensive Income' in a single statement. (e) Use of estimates and management judgment The preparation of consolidated financial statements in conformity with IFRS requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting year. Actual results may differ from those estimates. Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the year in which the estimates are revised and in any future years affected. Significant areas requiring the use of estimates relate to the determination of the net realizable value of inventory (obsolescence provisions), allowance for doubtful accounts receivable, impairment of non-financial assets, useful lives of depreciable assets and expected life, and volatility and forfeiture rates for share-based payments. Inventories The Company estimates the net realizable values of inventories, taking into account the most reliable evidence available at each reporting date. The future realization of these inventories may be affected by future technology or other market-driven changes that may reduce future selling prices. Reducer research and development supplies are expensed as the supplies are used. Allowance for doubtful accounts receivable The Company has established and applied a provision matrix to the trade accounts receivables balances in order to calculate an allowance for doubtful accounts on adoption of IFRS 9. Actual collectability of customer balances can vary from the Company’s estimation. Impairment of long-lived assets In assessing impairment, the Company estimates the recoverable amount of each asset or cash generating unit based on expected future cash flows and uses an interest rate to discount them. Estimation uncertainty relates to assumptions about future operating results and the determination of a suitable discount rate. Useful lives of depreciable assets The Company reviews its estimate of the useful lives of depreciable assets at each reporting date, based on the expected utilization of the assets. Share-based payments The Company measures the cost of equity-settled transactions by reference to the fair value of the equity instruments at the date at which they are granted. Estimating fair value for share-based payment transactions requires determining the most appropriate valuation model, which is dependent on the terms and conditions of the grant. This estimate also requires determining the most appropriate inputs to the valuation model including the expected life of the share option, risk free interest rate, volatility and forfeiture rates and making assumptions about them. Determination of functional currency The Company determines its functional currency as the United States dollar based on the primary economic environment in which it operates. IAS 21 The Effects of Changes in Foreign Exchange Rates outlines a number of factors to apply in determining the functional currency, which is subject to significant judgment by management. Management uses a number of factors to determine the primary economic environment in which the Company operates; it is normally the one in which it primarily generates and expends cash. Deferred tax assets Deferred tax assets are recognized in respect of tax losses and other temporary differences to the extent probable that there will be taxable income available against which the losses can be utilized. Judgment is required to determine the amount of deferred tax assets that can be recognized based on estimates of future taxable income. Contingent Liabilities Contingent liabilities are assessed continually to determine whether an outflow of resources embodying economic benefits has become probable. If it becomes probable that an outflow of future economic benefits will be required for an item previously dealt with as a contingent liability, a provision is recognized in the consolidated financial statements of the year in which the change in probability occurs. Determination of discount rate to measure lease liabilities The Company enters into leases with third-party landlords and as a consequence the rate implicit in the relevant lease is not readily determinable. Therefore, the Company uses its incremental borrowing rate as the discount rate for determining its lease liabilities at the lease commencement date. The incremental borrowing rate is the rate of interest that the Company would have to pay to borrow over similar terms which requires estimations when no observable rates are available. Accounting for financing and determination of fair value of derivative liabilities The determination of the accounting treatment for the financing transactions, most notably for those completed in November 2017, May 2019 and May 2020 is an area of significant management judgment. In particular, this involved the determination of whether the warrants issued and the conversion feature associated with the convertible note should be classified as equity or as derivative liabilities. The difference between the transaction amount and the fair value of the instruments issued in connection with the financing gives rise to a loss which has been deferred as the fair values were not determined using only observable market inputs. The manner in which the deferred loss will be recognized within income involves management judgment. The warrants and convertible notes will be measured at fair value through profit and loss at each year end. The calculations of the fair value of these instruments involves the use of a number of estimates and a complex valuation model. The carrying amounts of these liabilities may change significantly as a result of changes to these estimates. Details of the estimates used as at December 31, 2020 are disclosed in Note 16. |
SIGNIFICANT ACCOUNTING POLICIES
SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2020 | |
SIGNIFICANT ACCOUNTING POLICIES | |
SIGNIFICANT ACCOUNTING POLICIES | 3. SIGNIFICANT ACCOUNTING POLICIES The accounting policies set out below have been applied consistently to all years presented in these consolidated financial statements. (a) Foreign currency translation The presentation currency of the consolidated financial statements is the United States dollar. Where functional currency is different than presentation currency, all revenues, expenses and cash flows for each year are translated into the presentation currency using average rates for the year, or the rates in effect at the date of the transaction for significant transactions. Assets and liabilities are translated using the exchange rate at the end of the year and stockholders’ equity was translated at historical rates. The resulting translation adjustment was recorded as accumulated foreign currency translation adjustment in accumulated other comprehensive income. Foreign currency denominated non-monetary assets and liabilities are translated at the historical rates of exchange in effect on the date the asset was acquired or liability incurred. Foreign currency denominated revenues and expenses are translated at the rate of exchange on the date on which such transactions occur. Foreign currency gains or losses arising on the settlement of foreign-currency denominated monetary assets and liabilities are recognized in profit or loss in the year in which they arise. (b) Financial Instruments Financial assets and financial liabilities are recognized on the Company’s consolidated statement of financial position when the Company becomes party to the contractual provisions of the instrument. Financial assets are de-recognized when the contractual rights to the cash flows from the financial asset expire or when the contractual rights to those assets are transferred. Financial liabilities are de-recognized when the obligation specified in the contract is discharged, cancelled or expired. Financial assets The Company classifies its cash and cash equivalents, restricted cash, and accounts receivable at amortized cost. Such assets are recognized initially at fair value plus any directly attributable transaction costs. Subsequent to initial recognition loans and receivables are measured at amortized cost using the effective interest method. Financial liabilities The Company classifies its accounts payable and accrued liabilities as other financial liabilities. These financial liabilities are recognized initially at fair value less any directly attributable transaction costs. Subsequent to initial recognition, these financial liabilities are measured at amortized cost using the effective interest method. The Company classifies its convertible notes as a financial liability at fair value through profit and loss. The entire instrument is recognized initially at fair value with any subsequent changes in fair value recognized as an unrealized gain or loss in the statement of loss and comprehensive loss. All related transaction costs are expensed as incurred. Derivative instruments, including derivative instruments embedded in other contracts and instruments designated for hedging activities, are recognized as either asset or liabilities in the statement of financial position and measured at fair value. The Company has not used derivative instruments to hedge exposures to cash flow or foreign currency risks. Any change in the fair value of a derivative or an embedded derivative not designated as a hedging instrument is recognized as an unrealized gain or loss in the statement of loss and comprehensive loss. (c) Cash and cash equivalents Cash and cash equivalents include cash on hand and short-term, highly liquid investments that are readily convertible to known amounts of cash within 90 days of purchase. (d) Restricted cash Restricted cash represents secured cash that cannot be accessed by the Company without prior authorization from parties not related to the Company. Restricted cash is disclosed separately as part of other non-current assets. (e) Inventory Inventory is valued at the lower of cost and net realizable value for finished goods, work in progress and raw materials. Cost is determined on a first-in, first-out basis. Cost of finished goods and work in progress includes direct material and labor costs and an allocation of manufacturing overhead and applicable shipping and handling costs. In determining net realizable value, the Company considers factors such as obsolescence, future demand for inventory and contractual arrangements with customers. (f) Property and equipment Items of property and equipment are measured at cost less accumulated depreciation and accumulated impairment losses. As no finite useful life for land can be determined, related carrying amounts are not depreciated. Depreciation of property and equipment is recognized in profit or loss over the estimated useful lives using the following rates and methods: Building 4% declining balance Leasehold improvements amortized over the life of the lease Production & development equipment 30% declining balance Computer hardware 30% declining balance Computer software 100% declining balance Office equipment 20% declining balance Gains or losses arising on the disposal of property and equipment are determined as the difference between the disposal proceeds and the carrying amount of the assets and are recognized in profit or loss. (g) Impairment of assets Financial instruments The Company uses the expected credit loss (ECL) model for calculating impairment of financial assets and recognizes expected credit losses as loss allowances for assets measured at amortized cost. ECLs are based on the difference between the contractual cash flows due in accordance with the contract and all the cash flows that the Company expects to receive, which is determined based on historical information, external indicators, and forward-looking information through use of a provision matrix. For trade receivables, the Company applies the simplified approach permitted by IFRS 9, which requires expected lifetime losses to be recognized from initial recognition of the assets. Non-financial assets The carrying amounts of the Company’s non-financial assets, other than inventories are reviewed at each reporting date to determine whether there is any indication of impairment. If any such indication exists, then the asset’s recoverable amount is estimated. The recoverable amount of an asset or cash-generating unit is the greater of its value in use and its fair value less costs of disposal. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset. For the purpose of impairment testing, if it is not possible to estimate the recoverable amount of an individual asset, the asset is included in the cash-generating unit to which it belongs and the recoverable amount of the cash-generating unit is estimated. As a result, some assets are tested individually for impairment and some are tested at the cash-generating unit level. A cash-generating unit is the smallest group of assets that generates cash inflows from continuing use that are largely independent of the cash inflows of other assets or groups of assets. An impairment loss is recognized if the carrying amount of an asset or its cash-generating unit exceeds its estimated recoverable amount. Impairment losses are recognized in profit or loss. Impairment losses recognized in respect of cash-generating units are allocated first to reduce the carrying amount of any goodwill allocated to the units and then to reduce the carrying amounts of the other assets in the unit on a pro-rata basis. (i) Contingent Liabilities and Provisions Provisions for product warranties, legal disputes, onerous contracts or other claims are recognized when the Company has a present legal or constructive obligation as a result of a past event, it is probable that an outflow of economic resources will be required from the Company and amounts can be estimated reliably. No liability is recognized if an outflow of economic resources as a result of present obligations is not probable. Such situations are disclosed as contingent liabilities unless the outflow of resources is remote. (j) Employee benefits The Company provides short-term employee benefits and post-employment benefits to current employees. The short-term employee benefits include wages, salaries, social security contributions, paid annual leave, paid sick leave and medical care. Short-term employee benefits obligations are measured on an undiscounted basis and are expensed as the related service is provided. The Company provides post-employment benefits through defined contribution plans, including contributions to the Canadian Pension Plan and individual Registered Retirement Savings Plans of qualified employees. Contributions to defined contribution pension plans are recognized as an employee benefit expense in the years during which services are rendered by employees. (k) Revenue recognition Revenues from the Reducer are recognized at a point in time as follows: Effective January 1, 2018, upon adoption of IFRS 15 Revenue from Contracts with Customers, the Company recognizes revenue for goods provided when the performance obligations have been completed, when control of the goods transfer to the customer, when the goods have been accepted by the customer and when collectability is reasonably assured. The consideration for goods provided is measured at the fair value of the consideration received. The standalone selling prices are determined based on the agreed upon list prices at which the Company sells its services in separate transactions. Payment terms with customers vary by country and contract. Standard payment terms are 60 days from invoice date. The transaction price is documented on the contract or purchase order and agreed to by the customer. The adoption of this new standard has had no significant impact on the Company’s consolidated financial statements. Revenue recognition policy subsequent to January 1, 2018 The Company earned revenue from one source: the Reducer. Revenues from this source were recognized as follows: Revenue from the sale of goods was recognized when the Company transferred to the buyer the significant risks and rewards of ownership of the goods, the Company retained neither continuing managerial involvement nor effective control over the goods sold, the amount of revenue was measured reliably, it was probable that the economic benefits associated with the transaction will flow to the Company and the costs incurred or to be incurred in respect of the transaction was measured reliably. Reducer For the Reducer, this criteria was met upon time of shipment at shipping point. (l) Research and development The Company is engaged in research and development. Research costs are expensed as incurred. Development costs are expensed in the year incurred, unless they meet the criteria for capitalization. The criteria include that development costs can be measured reliably, the product or process is technically and commercially feasible, future economic benefits are probable, and the Company intends to and has sufficient resources to complete development and to use or sell the asset. Other development expenditure is recognized in profit or loss as incurred. Management reviews the applicable criteria on a regular basis and if the criteria are no longer met, any remaining unamortized balance is written off as a charge to profit or loss. Research and development costs are reduced by any scientific research and experimental development tax credits to which the Company is entitled. (m) Interest income and interest expense Interest income comprises interest income from high interest savings accounts and guaranteed investment certificates. Interest income is recognized in profit or loss, using the effective interest method. (n) Operating lease Prior to January 1, 2019, leases where the Company does not assume substantially all the risks and rewards of ownership are classified as operating leases. Payments on operating leases are recognized as an expense on a straight-line basis over the lease term. Associated costs, such as maintenance and insurance, are expensed as incurred. See Note 3(t) IFRS 16 – Leases for discussion on treatment subsequent to January 1, 2019. ( o) Income taxes Tax expense represents current tax and deferred tax. Tax is recognized in profit or loss except to the extent it relates to items recognized in other comprehensive income or directly in equity. Current tax is based on the taxable profits for the year, and is calculated using tax rates that have been enacted or substantively enacted by the reporting date. Deferred tax is recognized, using the liability method, on temporary differences arising between the tax bases of assets and liabilities and their respective carrying amounts in the consolidated financial statements. However, deferred tax is not accounted for if it arises from initial recognition of an asset or liability in a transaction, other than a business combination, that at the time of the transaction affects neither the accounting profit nor taxable profit. Deferred tax assets are recognized to the extent that it is probable that the future taxable profit will be available against which the deductible temporary differences and the carry forward of unused tax credits and unused tax losses can be utilized. Deferred tax assets and liabilities are offset when the Company has a right and intention to offset tax assets and liabilities from the same taxation authority. Deferred tax is determined using tax rates (and laws) that have been enacted or substantively enacted by the reporting date and are expected to apply when the related deferred tax asset is realized or the deferred tax liability settled. (p) Equity Share capital represents the value of shares that have been issued. Any transaction costs associated with the issuing of shares are deducted from share capital. From time to time the Company may issue units consisting of common shares and common share purchase warrants. The Company estimates the fair value of the common shares based on their market price on the date of the issuance of the units. The residual difference, if any, between the unit price and the fair value of each common share represents the fair value attributable to each warrant. Any transaction costs associated with the issuance of units would be apportioned between the common shares and warrants based on their relative fair values. Professional, consulting, regulatory fees and other costs that are directly attributable to financing transactions are deferred until such time as the transactions are completed. Share issue costs are charged to share capital when the related shares are issued. Costs relating to financing transactions that are abandoned are charged to profit and loss. Contributed surplus includes the fair value of vested stock options and share units (see Note 3(q)). Deficit includes all current and prior year losses. ( q) Share-based payments The Company has an equity-settled share-based stock option plan. The Company grants stock options to buy Common Shares of the Company to directors, officers, employees and consultants (see Note 18 (b)). The fair value of the stock options awarded to employees, directors, officers and service providers is measured at grant date, using the Black-Scholes Option Pricing Model with assumptions for risk-free interest rates, dividend yields, volatility factors of the expected market price of the Company's Common Shares, based on historic market price volatility, and an expected life of the options. The fair value of the options is recognized as an employee expense, with a corresponding increase in equity, over the year that the employees unconditionally become entitled to the options. The amount recognized as expense is adjusted to reflect the number of stock options expected to vest. For stock options with non-vesting conditions, the grant date fair value of the options is recognized to reflect such conditions and there is no true-up for differences between expected and actual outcomes. The Company uses a fair value-based method of accounting for restricted share units (“RSUs”) which are assumed to settle on an equity basis. The Company grants restricted share units to the Company’s directors, officers, employees and consultants (see Note 18(c)). The fair value of the RSUs awarded to employees, directors, officers and service providers is measured at market date, using the Black-Scholes Option Pricing Model with assumptions for risk-free interest rates, dividend yields, volatility factors of the expected market price of the Company's Common Shares, based on historic market price volatility, and an expected life of the restricted share units. The cost is recorded over the vesting period of the award to the same expense category of the award’s recipients compensation costs and the corresponding entry is recorded in equity. (r) Loss per share Loss per share is computed using the weighted average number of Common Shares outstanding during the year. Diluted loss per share is computed using the treasury stock method and weighted average number of Common Shares outstanding during the year for the effects of all potentially dilutive shares. (s) Operating segment The Company operates its business in one segment. The Company reports information about revenues from customers for the Reducer, from geographical areas, and from major customers. (t) Government assistance and government grants Government grants are recognized when there is a reasonable assurance that the grant will be received and that the Company will comply with all conditions related to the grant. A grant without specified future performance conditions is recognized in income when the grant proceeds are receivable. A grant that imposes specified future performance conditions is recognized in income when those conditions are met. Government grants related to current expenses are recognized as income over the period necessary to match them with the related expenses, for which they are intended to compensate, on a systematic basis. Government grants related to specific projects are recognized as income over the period necessary to match them with the related project costs, for which they are intended to compensate, on a systematic basis. Government grants in the form of forgivable loans are treated as a government grant when there is reasonable assurance that the entity will meet the terms for forgiveness of the loan. Government grants received before the income recognition criteria are satisfied are presented as a liability in the statement of financial position. Government refundable advances provided to the Company to finance research and development activities on a risk-sharing basis are considered part of the Company’s operating activities and are therefore presented as cash flows from operating activities in the statement of cash flows. (see Note 25) (u) Accounting standard issued and effective January 1, 2019 IFRS 16 – Leases IFRS 16 ‘Leases’ replaces IAS 17 ‘Leases’ along with three Interpretations (IFRIC 4 ‘Determining whether an Arrangement contains a Lease’, SIC 15 ‘Operating Leases-Incentives’ and SIC 27 ‘Evaluating the Substance of Transactions Involving the Legal Form of a Lease’). The new Standard has been applied using the modified retrospective approach, with the cumulative effect of adopting IFRS 16 being recognized in equity as an adjustment to the opening balance of retained earnings for the current period. Prior periods have not been restated. For contracts in place at the date of initial application, the Company has elected to apply the definition of a lease from IAS 17 and IFRIC 4 and has not applied IFRS 16 to arrangements that were previously not identified as lease under IAS 17 and IFRIC 4. The Company has elected to include initial direct costs in the measurement of the right-of-use asset for operating leases in existence at the date of initial application of IFRS 16, being January 1, 2019. At this date, the Company has also elected to measure the right-of-use assets at an amount equal to the lease liability adjusted for any prepaid or accrued lease payments that existed at the date of transition. The Company performed an impairment review on the right-of-use assets at the date of initial application. On transition, for leases previously accounted for as operating leases with a remaining lease term of less than 12 months and for leases of low-value assets, the Company has applied the optional exemptions to not recognize right-of-use assets but to account for the lease expense on a straight-line basis over the remaining lease term. On transition to IFRS 16 the weighted average incremental borrowing rate applied to lease liabilities recognized under IFRS 16 was 10%. The Company has benefited from the use of hindsight for determining the lease term when considering options to extend and terminate leases. The following is a reconciliation of total operating lease commitments at December 31, 2018 to the lease liabilities recognized at January 1, 2019: Total operating lease commitments disclosed at December 31, 2018 $ 1,431,188 Recognition exemptions: Leases of low value assets — Leases with remaining lease term of less than 12 months — Variable lease payments not recognized — Operating lease liabilities before discounting 1,431,188 Discounted using incremental borrowing rate (142,082) Operating lease liabilities 1,289,106 Total lease liabilities recognized under IFRS 16 at January 1, 2019 $ 1,289,106 For any new contracts entered into on or after January 1, 2019, the Company considers whether a contract is, or contains a lease. A lease is defined as ‘a contract, or part of a contract, that conveys the right to use an asset (the underlying asset) for a period of time in exchange for consideration’. To apply this definition the Company assesses whether the contract meets three key evaluations which are whether: a. the contract contains an identified asset, which is either explicitly identified in the contract or implicitly specified by being identified at the time the asset is made available to the Company. b. the Company has the right to obtain substantially all of the economic benefits from use of the identified asset throughout the period of use, considering its rights within the defined scope of the contract. c. the Company has the right to direct the use of the identified asset throughout the period of use. The Company assess whether it has the right to direct ‘how and for what purpose’ the asset is used throughout the period of use. Measurement and recognition of leases as a lessee At the lease commencement date, the Company recognizes a right-of-use asset and a lease liability on the statement of financial position. The Company depreciates the right-of-use assets on a straight-line basis from the lease commencement date to the earlier of the end of the useful life of the right-of-use asset or the end of the lease term. The Company also assesses the right-of-use asset for impairment when such indicators exist. At the commencement date, the Company measures the lease liability at the present value of the lease payments unpaid at that date, discounted using the interest rate implicit in the lease if that rate is readily available. If the interest rate implicit in the lease is not readily available, the Company discounts using the Company’s incremental borrowing rate. Lease payments included in the measurement of the lease liability are made up of fixed payments (including in-substance fixed), variable payments based on an index or rate, amounts expected to be payable under a residual value guarantee and payments arising from options reasonably certain to be exercised. Subsequent to initial measurement, the liability will be reduced for payments made and increased for interest. It is remeasured to reflect any reassessment or modification, or if there are changes in in-substance fixed payments. When the lease liability is remeasured, the corresponding adjustment is reflected in the right-of-use asset, or profit and loss if the right-of-use asset is already reduced to zero. The Company has elected to account for short-term leases and leases of low-value assets using the practical expedients. Instead of recognizing a right-of-use asset and lease liability, the payments in relation to these are recognized as an expense in profit or loss on a straight-line basis over the lease term. On the statement of financial position, right-of-use assets have been included under non-current assets and lease liabilities have been included under current and non-current liabilities. |
MANAGING CAPITAL
MANAGING CAPITAL | 12 Months Ended |
Dec. 31, 2020 | |
MANAGING CAPITAL | |
MANAGING CAPITAL | 4. MANAGING CAPITAL The Company’s objectives, when managing capital, are to safeguard cash as well as maintain financial liquidity and flexibility in order to preserve its ability to meet financial obligations and deploy capital to grow its business. In the definition of capital, the Company includes equity and the convertible notes. There has been no change in the definition since the prior year. The Company’s financial strategy is designed to maintain a flexible capital structure consistent with the objectives stated above and to respond to business growth opportunities and changes in economic conditions. In order to maintain or adjust its capital structure, the Company may issue new shares, new units or new debt (secured, unsecured, convertible and/or other types of available debt instruments). For the years ended December 31, 2020, 2019 and 2018, there were no changes in the Company’s capital management policy. The capital of the Company is comprised of: 2020 2019 2018 2017 Convertible Notes $ — $ 5,400,189 $ 14,617,336 2017 Derivative warrant liability — — 190,303 2019 Convertible Notes 6,195,357 9,265,480 — 2020 Convertible notes and warrants and derivative warrant liabilities 1,522,054 — — Equity 1,977,517 (14,445,765) (8,332,838) Capital $ 9,694,928 $ (219,904) $ 6,284,498 |
FINANCIAL RISK MANAGEMENT
FINANCIAL RISK MANAGEMENT | 12 Months Ended |
Dec. 31, 2020 | |
FINANCIAL RISK MANAGEMENT | |
FINANCIAL RISK MANAGEMENT | 5. FINANCIAL RISK MANAGEMENT (a) Fair value estimation The fair value hierarchy establishes three levels to classify fair value measurements based upon the observability of significant inputs used in the valuation techniques. The three levels of the fair value hierarchy are described below: Level 1 | Quoted prices (unadjusted) in active markets for identical assets or liabilities Level 2 | Inputs other than quoted prices included in level 1 that are observable for the asset or liability, either directly (that is, as prices) or indirectly (that is, derived from prices) Level 3 | Inputs for the assets or liability that are not based on observable market data (that is, unobservable inputs) The following table sets forth the Company's financial assets and liabilities measured at fair value on a recurring basis by level within the fair value hierarchy as at December 31, 2020, 2019 and 2018. As required by IFRS 13, assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. As at December 31, 2018: Level 1 Level 2 Level 3 Total Financial liabilities at fair value through profit and loss 2017 Convertible Notes $ — $ — $ 14,617,336 $ 14,617,336 Derivative warrant financial liability from financing $ — $ — $ 190,303 $ 190,303 As at December 31, 2019: Level 1 Level 2 Level 3 Total Financial liabilities at fair value through profit and loss 2017 Convertible Notes $ — $ — $ 5,400,189 $ 5,400,189 2019 Convertible Notes $ — $ — $ 9,265,480 $ 9,265,480 As at December 31, 2020: Level 1 Level 2 Level 3 Total Financial liabilities at fair value through profit and loss 2019 Convertible Notes $ — $ — $ 6,195,357 $ 6,195,357 2020 Convertible notes and warrants and derivative warrant liabilities $ — $ — $ 1,522,054 $ 1,522,054 The carrying amounts of financial assets and financial liabilities in each category are as follows: Note 2020 2019 2018 Assets at amortized cost Cash and cash equivalents 6 $ 12,935,860 $ 5,292,833 $ 9,242,809 Accounts receivable 7 987,057 715,696 647,143 Restricted cash 11 470,460 462,874 439,736 $ 14,393,377 $ 6,471,403 $ 10,329,688 Other financial liabilities at amortized cost Accounts payable and accrued liabilities (current) 14 $ 7,243,500 $ 7,794,456 $ 4,610,560 Accounts payable and accrued liabilities (non-current) 14 — 1,186,601 2,241,979 Financial liabilities at fair value through profit and loss 2017 Convertible Notes (current) 16(b) $ — $ 5,400,189 $ 1,423,224 2017 Convertible Notes (non-current) 16(b) — — 13,194,112 2017 Derivative warrant liability (current) 16(b) — — 190,303 2019 Convertible Notes (current) 16(c) 38,633 1,090,561 — 2019 Convertible Notes (non-current) 16(c) 6,156,724 8,174,919 — 2020 Convertible Notes (current) 16(d) 37,525 — — 2020 Convertible notes and warrants and derivative warrant liabilities (non-current) 16(d) 1,484,529 — — $ 14,960,911 $ 23,646,726 $ 21,660,178 The carrying amounts of cash and cash equivalents, accounts receivable, restricted cash and accounts payable and accrued liabilities are considered a reasonable approximation of fair value due to their short-term nature. (b) Foreign exchange risk A portion of the Company’s revenues are derived from product sales in Europe, denominated in Euros. Management has considered the stability of the foreign currency and the impact a change in the exchange rate may have on future earnings during the forecasting process. The Euro represents approximately 45% of revenues for the year ended December 31, 2020, (years ended December 31, 2019 and 2018 : 30% and 23%, respectively). A 10% change in the foreign exchange rates for the Euro for foreign currency denominated accounts receivable will impact net income as at December 31, 2020 by approximately $8,114 (as at December 31, 2019 and 2018: $6,288 and $6,000), and a similar change in foreign currency denominated accounts payable, which are denominated in Canadian dollars and Euros will impact net income by approximately $102,662 and $108,703 respectively, as at December 31, 2020 (as at December 31, 2019 $80,654 and $176,569 and as at December 31, 2018 :$13,000 and $30,000). A similar change in foreign currency denominated cash and cash equivalents, and restricted cash, which are denominated in Canadian dollars and Euros will impact net income by approximately $80,953 and $49,459, respectively, as at December 31, 2020 (as at December 31, 2019 $5,254 and $2,780 and as at December 31, 2018: $4,837 and $5,855). The Company does not hedge its foreign exchange risk. (c) Interest rate risk The Company is not exposed to material cash flow interest rate risk on fixed rate cash balances, and short-term accounts receivable, accounts payable, 2019 and 2020 Notes that have fixed interest terms. (d) Liquidity risk As at December 31, 2020, the Company had $12,935,860 in cash and cash equivalents as compared to cash and cash equivalents of $5,292,833 at December 31, 2019. The Company is dependent on the profitable commercialization of its products or obtaining additional debt or equity financing to fund ongoing operations until profitability is achieved. The Company monitors its cash flow on a monthly basis and compares actual performance to the budget for the period. The Company expects that its cash on hand as at December 31, 2020 is sufficient to sustain operations until approximately May 2021 at the current burn rate. The Company may obtain additional debt or equity financing in future periods. Further into the future the Company is dependent on the profitable commercialization of its products or obtaining additional debt or equity financing to fund ongoing operations until profitability is achieved. Subsequent to December 31, 2020, on February 12, 2021 the Company received aggregate gross proceeds of $72 million from the February 2021 Financing (see Note 26). The proceeds from the February 2021 Financing could be sufficient to extend the operations of the Company for up to three years at the current burn rate. However, it is likely that the Company will initiate programs that were on hold given cash constraints and that the cash needs of the Company will increase, shortening the time the proceeds will meet the requirements of the Company. Trade payables were aged as follows as at December 31, 2020 and do not include accrued liabilities. All trades payables are current liabilities: Total Current $ 1,612,254 31-60 days 869,498 Over 60 days 1,223,874 $ 3,705,626 The following is an analysis of the contractual maturities of the Company’s non-derivative accrued liabilities as at December 31, 2020: Within One Year Collaboration, license and settlement agreements (undiscounted) $ 1,250,000 $ 1,250,000 (e) Credit risk Credit risk arises from the possibility that the entities to which the Company sells products may experience financial difficulty and be unable to fulfill their contractual obligations. This risk is mitigated by proactive credit management policies that include regular monitoring of the debtor’s payment history and performance. The Company does not require collateral from its customers as security for trade accounts receivable but may require certain customers to pay in advance of any work being performed or product being shipped. The maximum exposure, if all the Company’s customers were to default at the same time is the full carrying value of the trade accounts receivable as at December 31, 2020 is $322,201 (as at December 31, 2019 and 2018: $597,505 and $637,421, respectively). As at December 31, 2020, the Company had $146,658 (as at December 31, 2019 and 2018: $148,815 and $311,642, respectively) of trade accounts receivable that were overdue according to the customers’ credit terms. During the year ended December 31, 2020, the Company wrote down $nil of accounts receivable owed by customers (years ended December 31, 2019 and 2018: $64,600 and $489,449, respectively). The Company may also have credit risk related to its cash and cash equivalents and restricted cash, with a maximum exposure of $13,406,320 as at December 31, 2020 (as at December 31, 2019 and 2018: $5,755,707 and $9,682,545, respectively). The Company minimizes its risk to cash and cash equivalents and restricted cash by maintaining the majority of its balances with Canadian Chartered Banks. |
CASH AND CASH EQUIVALENTS
CASH AND CASH EQUIVALENTS | 12 Months Ended |
Dec. 31, 2020 | |
CASH AND CASH EQUIVALENTS | |
CASH AND CASH EQUIVALENTS | 6. CASH AND CASH EQUIVALENTS December 31, December 31, December 31, 2020 2019 2018 Cash held in: United States dollars $ 11,631,843 $ 4,489,501 $ 8,173,582 Canadian dollars 809,429 525,371 483,730 Euros 494,588 277,961 585,497 $ 12,935,860 $ 5,292,833 $ 9,242,809 |
ACCOUNTS RECEIVABLE
ACCOUNTS RECEIVABLE | 12 Months Ended |
Dec. 31, 2020 | |
ACCOUNTS RECEIVABLE | |
ACCOUNTS RECEIVABLE | 7 . ACCOUNTS RECEIVABLE December 31, December 31, December 31, 2020 2019 2018 Trade accounts receivable $ 322,201 $ 597,505 $ 637,421 Other accounts receivable 116,905 118,191 9,722 Income tax receivable 547,951 — — $ 987,057 $ 715,696 $ 647,143 All amounts are short-term. The aging analysis of trade receivables is as follows: December 31, December 31, December 31, 2020 2019 2018 Not past due $ 195,545 $ 472,257 $ 361,469 Past due 0 - 30 days — 14,139 18,614 30 - 60 days 35,114 20,000 — 60 - 90 days 11,543 — 54,428 90 – 120 days — — — Over 120 days 100,000 114,676 238,600 Loss allowance (20,001) (23,567) (35,690) $ 322,201 $ 597,505 $ 637,421 All the Company's trade and other receivables have been reviewed for impairment. During the year ended December 31, 2020, the Company wrote off $nil, respectively of accounts receivable (the years ended December 31, 2019 and 2018: $64,600, and $489,449). |
FINANCE LEASE RECEIVABLE
FINANCE LEASE RECEIVABLE | 12 Months Ended |
Dec. 31, 2020 | |
FINANCE LEASE RECEIVABLE | |
FINANCE LEASE RECEIVABLE | 8. FINANCE LEASE RECEIVABLE The Company entered into a sublease agreement which has been recognized as a finance lease. Finance lease receivables are presented in the statement of financial position as follows: December 31, December 31, December 31, 2020 2019 2018 Current $ 95,849 $ 86,764 $ — Non-current 42,841 138,690 — $ 138,690 $ 225,454 $ — The following is a detailed maturity analysis of the undiscounted finance lease receivables as at December 31, 2020: Total Less than 1 year $ 105,404 1-2 years 43,918 Total undiscounted finance lease receivables $ 149,322 |
INVENTORY AND RESEARCH AND DEVE
INVENTORY AND RESEARCH AND DEVELOPMENT SUPPLIES | 12 Months Ended |
Dec. 31, 2020 | |
INVENTORY AND RESEARCH AND DEVELOPMENT SUPPLIES | |
INVENTORY AND RESEARCH AND DEVELOPMENT SUPPLIES | 9 . INVENTORY AND RESEARCH AND DEVELOPMENT SUPPLIES December 31, December 31, December 31, 2020 2019 2018 Raw materials $ 694,043 $ 500,263 $ 301,693 Work in progress — — 2,435 Finished goods 145,429 118,387 14,007 $ 839,472 $ 618,650 $ 318,135 Research and development supplies $ 167,378 $ 671,845 $ 1,274,653 During the years ended December 31, 2020, 2019 and 2018 the Company did not write down any inventory. During the year ended December 31, 2020, $446,239 of inventory was expensed in cost of goods sold (year ended December 31, 2019 and 2018: $458,436 and $366,258). |
PREPAID EXPENSES AND OTHER ASSE
PREPAID EXPENSES AND OTHER ASSETS | 12 Months Ended |
Dec. 31, 2020 | |
PREPAID EXPENSES AND OTHER ASSETS | |
PREPAID EXPENSES AND OTHER ASSETS | 10. PREPAID EXPENSES AND OTHER ASSETS December 31, December 31, December 31, 2020 2019 2018 Prepaid insurance 367,969 269,262 190,849 Deposits on rental agreements 128,680 119,660 276,500 Retainers for professional services 23,000 23,000 5,593 Other prepaid expenses and other assets 185,822 218,120 118,294 $ 705,471 $ 630,042 $ 591,236 |
RESTRICTED CASH
RESTRICTED CASH | 12 Months Ended |
Dec. 31, 2020 | |
RESTRICTED CASH | |
RESTRICTED CASH | 11. RESTRICTED CASH December 31, December 31, December 31, 2020 2019 2018 Restricted cash $ 470,460 $ 462,874 $ 439,736 Restricted cash represents $600,000 CAD security held by a Canadian Chartered Bank as a guarantee for the Company’s same day electronic processing facility and corporate credit card facility. |
RIGHT OF USE ASSET
RIGHT OF USE ASSET | 12 Months Ended |
Dec. 31, 2020 | |
RIGHT OF USE ASSET | |
RIGHT OF USE ASSET | 12. RIGHT OF USE ASSET COST Total Balance at January 1, 2019 on adoption of IFRS 16 $ 1,407,704 Impairment of right-of-use asset (231,773) Impairment reversal 156,366 Sublease (274,965) Balance as at December 31, 2019 $ 1,057,333 Addition and lease modification 478,281 Balance as at December 31, 2020 $ 1,535,614 ACCUMULATED DEPRECIATION Balance at January 1, 2019 on adoption of IFRS 16 — Depreciation for the year 336,860 Balance at December 31, 2019 $ 336,860 Depreciation for the year 368,203 Balance as at December 31, 2020 $ 705,063 NET BOOK VALUE As at January 1, 2019, $ 1,407,704 As at December 31, 2019 $ 720,473 As at December 31, 2020 $ 830,551 The Company’s right-of-use asset relates to the lease of buildings. The Company entered into an agreement for office space in September 2014 in Richmond, Canada. The agreement did not contain any contingent rent clauses, or purchase options or escalation clauses. The term of the lease was 36 months commencing on October 1, 2014. The lease contained an option to renew for an additional 36 months. In February 2017, the Company renewed the lease and added additional office premises. The term of the combined lease is 60 months commencing June 1, 2017. The amended agreement does not contain any contingent rent clauses, purchase options or escalation clauses. The Company entered into a sublease agreement for a portion of office space in September 2019. The term for the sublease agreement was 32 months commencing on October 7, 2019 (See Note 8). The Company entered into an agreement for office space in September 2014 in Minneapolis. The agreement did not contain any contingent rent clauses, purchase options or escalation clauses. The original term of the lease was 66 months commencing on September 1, 2014. Additional office space was added in July 2015 in Minneapolis. The term of the combined lease is 69 months commencing on July 1, 2015. In August 2019, the Company renewed the lease for an additional 36 months commencing June 1, 2020. The Company entered into an agreement for office space in December 2016 in Richmond, Canada. The agreement does not contain any contingent rent clauses, renewal or purchase options or escalation clauses. The term of the lease is 24 months commencing on December 19, 2016. In December 2018, the Company renewed the lease for another 24 months commencing on December 19, 2018. In October 2020, the Company renewed the lease for another 24 months commencing on December 19, 2020. The Company entered into an agreement for office space in June 2018 in Richmond, Canada. The agreement does not contain any contingent rent clauses, purchase options or escalation clauses. The term of the lease is 36 months commencing on August 1, 2018. The lease contains an option to renew for an additional 24 months. In June 2020,the Company renewed the lease for an additional 36 months commencing August 1, 2021. |
PROPERTY AND EQUIPMENT
PROPERTY AND EQUIPMENT | 12 Months Ended |
Dec. 31, 2020 | |
PROPERTY AND EQUIPMENT | |
PROPERTY AND EQUIPMENT | 13. PROPERTY AND EQUIPMENT Production & Leasehold development Computer Computer Office Land Building improvements equipment hardware software equipment Total COST Balance as at January 1, 2018 $ 249,493 $ 438,471 $ 169,938 $ 1,649,728 $ 543,922 $ 612,273 $ 316,085 $ 3,979,910 Additions during the year — — — 149,583 — 40,799 — 190,382 Disposals during the year (249,493) (438,471) — (310,353) — — — (998,317) Balance as at December 31, 2018 $ — $ — $ 169,938 $ 1,488,958 $ 543,922 $ 653,072 $ 316,085 $ 3,171,975 Additions during the year — — — 203,169 — 40,332 — 243,501 Disposals during the year — — — — — — — — Balance at December 31, 2019 $ — $ — $ 169,938 $ 1,692,127 $ 543,922 $ 693,404 $ 316,085 $ 3,415,476 Additions during the year — — — 202,329 106,149 33,289 — 341,767 Disposals during the year — — — (88,285) — — — (88,285) Balance as at December 31, 2020 $ — $ — $ 169,938 $ 1,806,171 $ 650,071 $ 726,693 $ 316,085 $ 3,668,958 ACCUMULATED DEPRECIATION Balance at January 1, 2018 $ — $ 53,564 $ 66,416 $ 998,944 $ 386,095 $ 572,017 $ 217,694 $ 2,294,730 Depreciation for the year — 7,698 23,439 211,908 47,348 74,055 19,678 384,126 Disposals during the year — (61,262) — (259,247) — — — (320,509) Balance at December 31, 2018 $ — $ — $ 89,855 $ 951,605 $ 433,443 $ 646,072 $ 237,372 $ 2,358,347 Depreciation for the year — — 18,132 184,429 33,144 40,371 15,744 291,820 Disposals during the year — — — (2,664) — — — (2,664) Balance at December 31, 2019 $ — $ — $ 107,987 $ 1,133,370 $ 466,587 $ 686,443 $ 253,116 $ 2,647,503 Depreciation for the year — — 25,636 184,973 33,815 37,477 12,593 294,494 Disposals during the year — — — (76,319) — — — (76,319) Balance at December 31, 2020 $ — $ — $ 133,623 $ 1,242,024 $ 500,402 $ 723,920 $ 265,709 $ 2,865,678 CARRYING AMOUNTS As at December 31, 2018 $ — $ — $ 80,083 $ 537,353 $ 110,479 $ 7,000 $ 78,713 $ 813,628 As at December 31, 2019 $ — $ — $ 61,951 $ 558,757 $ 77,335 $ 6,961 $ 62,969 $ 767,973 As at December 31, 2020 $ — $ — $ 36,315 $ 564,147 $ 149,669 $ 2,773 $ 50,376 $ 803,280 |
ACCOUNTS PAYABLE AND ACCRUED LI
ACCOUNTS PAYABLE AND ACCRUED LIABILITIES | 12 Months Ended |
Dec. 31, 2020 | |
ACCOUNTS PAYABLE AND ACCRUED LIABILITIES | |
ACCOUNTS PAYABLE AND ACCRUED LIABILITIES | 14. ACCOUNTS PAYABLE AND ACCRUED LIABILITIES December 31, December 31, December 31, 2020 2019 2018 Current accounts payable and accrued liabilities Trade payables $ 3,705,626 $ 3,993,203 $ 898,711 Accrued liabilities 1,421,433 2,163,886 1,117,673 Accrued vacation 335,681 211,168 142,730 Accrued employee termination expenses — 13,887 373,171 Other accounts payable 535,124 320,306 190,496 Share appreciation rights liability 59,036 — — Collaboration, license, and settlement agreements provision 1,186,600 1,092,006 1,887,779 Total current accounts payable and accrued liabilities $ 7,243,500 $ 7,794,456 $ 4,610,560 Non-current accrued liabilities Non-current collaboration, license and settlement agreements provision — 1,186,601 2,241,979 $ — $ 1,186,601 $ 2,241,979 Total accounts payable and accrued liabilities $ 7,243,500 $ 8,981,057 $ 6,852,539 Included in accounts payable and accrued liabilities are $470,349 related to settlement charges as part of a collaboration agreement and $716,251 related to a settlement provision (see Note 24). This represents the calculated net present value of the amounts set out per the agreement with payments due over the next year. |
LEASE LIABILITY
LEASE LIABILITY | 12 Months Ended |
Dec. 31, 2020 | |
LEASE LIABILITY | |
LEASE LIABILITY | 15. LEASE LIABILITY Total Balance at January 1, 2019 $ 1,289,106 Interest expense 128,911 Lease payments (513,138) Balance at December 31, 2019 $ 904,879 Lease Liability, current $ 436,352 Lease Liability, non-current $ 468,527 Addition and lease modification 478,280 Interest expense 106,843 Lease payments (550,211) Balance at December 31, 2020 $ 939,791 Lease Liability, current $ 342,910 Lease Liability, non-current $ 596,881 The maturity analysis of the undiscounted contractual balances of the lease liabilities is as follows: In one year or less $ 484,782 In more than one year, but not more than five years 664,848 $ 1,149,630 |
DERIVATIVE WARRANT LIABILITY FR
DERIVATIVE WARRANT LIABILITY FROM FINANCING AND CONVERTIBLE NOTE | 12 Months Ended |
Dec. 31, 2020 | |
DERIVATIVE WARRANT LIABILITY FROM FINANCING AND CONVERTIBLE NOTE | |
DERIVATIVE WARRANT LIABILITY FROM FINANCING AND CONVERTIBLE NOTE | 19.99% of the total outstanding Common Shares of the Company as a result of the conversion). The conversion price fluctuates from $7.50 per common share (prior to the 2nd anniversary of issuance) to $8.50 between the 2nd and 3rd anniversaries of issuance to $9.70 after the 3 rd anniversary of issuance. The conversion price would also be altered subject to certain anti-dilution provisions.
Accordingly, the 2019 Notes contain two embedded derivatives: the conversion option and the prepayment option. Accordingly, the Company has elected to measure the 2019 Notes at FVTPL. The fair values of the 2019 Notes were calculated using the Cox Ross Rubinstein binomial tree model and have been classified as level 3 in the fair value hierarchy.
(d) 2020 Convertible Notes
On May 28, 2020, the Company issued senior secured convertible notes (“2020 Notes”) with a principal amount of $5 million, convertible at $2.815 per Common Share for 1,776,041 Common Shares and 2,573,959 Warrants (“2020 Warrants”) exercisable at $2.634 per 2020 Warrant with a 4-year term.
The 2020 Notes have the following key terms:
·
The 2020 Notes will bear interest at the rate of 8% computed on the basis of a 360-day year and twelve 30-day months and shall be payable in additional 2020 Notes on the date that is six-months after issuance and on each six-month period thereafter up to, and including, the maturity date.
·
The 2020 Notes will have a maturity date of 48 months after issuance with the holder’s option for early redemption at 24 months.
·
Change of control redemption option with option premia of 125% in the first year, 115% in the second year, 105% in the third year, and 100% thereafter.
·
The 2020 Notes are convertible into Common Shares of the Company at the option of the holder (however, the holder may not own greater than 9.99% of the total outstanding Common Shares of the Company as a result of the conversion).
·
The conversion option caused the number of shares to be issued upon exercise to be variable, and therefore do not meet the fixed of fixed test under IAS 32- Financial instruments – presentation.
Accordingly, the 2020 Notes contain three embedded derivatives: change in control redemption option, the early redemption option and the conversion option but will not be separated from the host debt instrument and the entire hybrid contract will be designated as at fair value through profit or loss. The fair values of the 2020 Notes were calculated using the Cox Ross Rubinstein binomial tree model and have been classified as level 3 in the fair value hierarchy. The fair value of the convertible debt was $6,449,634 which exceeded the transaction price giving rise to a loss of $3,511,670. Since the fair value of the convertible debt is not determined using a valuation that only uses data from observable markets, the loss on initial recognition has been deferred and will be recognized in income over the expected term of the instrument.
(e) Warrants and Convertible Notes Model
The 2017 Warrants were accounted for based on the level 3 fair value estimate of Series A Warrants, Series B Warrants, Series C Warrants, Series D Warrants, Series E Warrants and Series F Warrants by using a binomial option pricing model.
The 2017 Notes were accounted for based on the level 3 fair value estimate of the notes based on a binomial tree model.
Key assumptions used in the model at December 31, 2020,2019 and 2018 are summarized below:
March 31,
December 31,
December 31,
Valuation Date
2020
2019
2018
Price of Common Shares
$
1.46
$
5.41
$
6.03
Dividend Yield
0
%
0
%
0
%
Historical volatility of Common Shares
100.84
%
129.54
%
141.96
%
Historical volatility of index
36.07
%
11.65
%
15.37
%
Volatility input
75.16
%
70.59
%
78.67
%
Risk-free rate
1.11
%
1.79
%
2.52
%
Credit spread
29.58
%
23.00
%
24.51
%
The 2019 Notes were accounted for based on the level 3 fair value estimate of the notes based on a binomial tree model.
Key assumptions used in the model at initial recognition and at December 31, 2020 and 2019 are summarized below:
Valuation Date
December 31,
December 31,
May 16,
Price of Common Shares
$
0.95
$
5.41
$
49.46
Dividend Yield
0
%
0
%
0
%
Historical volatility of Common Shares
103.42
%
124.77
%
142.38
%
Historical volatility of index
23.11
%
13.76
%
15.66
%
Volatility input
63.26
%
69.26
%
79.02
%
Risk-free rate
0.19
%
1.65
%
2.13
%
Credit spread
18.18
%
27.15
%
19.64
%
The 2020 Warrants were accounted for based on the level 3 fair value estimate of the Warrants by using a binomial option pricing model.
The 2020 Notes were accounted for based on the level 3 fair value estimate of the notes based on a binomial tree model.
Key assumptions used in the model at initial recognition and at December 31, 2020 are summarized below:
December 31,
May 28,
Valuation Date
2020
2020
Price of Common Shares
$
0.95
$
2.86
Dividend Yield
—
%
—
%
Historical volatility of Common Shares
116.72
%
127.50
%
Historical volatility of index
20.74
%
18.91
%
Volatility input
68.73
%
73.21
%
Risk-free rate
0.26
%
0.32
%
Credit spread
14.42
%
19.35
%
The carrying amounts for the 2017 derivative warrant liability from financing are as follows:
Series A Units
Series B Units
Series E
Total
Fair value adjustment, December 31, 2018
1,190,630
(8,411,543)
(4,512,848)
(11,733,761)
Balance, Derivative financial liability December 31, 2018
$
35,693
$
82,523
$
72,087
$
190,303
Less:
Exercise of 822,192 Series C Warrants
(5,638)
—
—
(5,638)
Fair value adjustment, March 31, 2019
(5,575)
(5,253)
(6,677)
(17,505)
Cancellation of 35,950,340 Series A Warrants
(24,480)
(77,270)
—
(101,750)
Cancellation of 22,431,506 Series E Warrants
—
—
(65,410)
(65,410)
Balance, derivative warrant liability from financing as at December 31, 2019 and 2020
$
—
$
—
$
—
$
—
The carrying amounts for the 2020 derivative warrant liability from financing are as follows:
2020 January Warrants
Inception of the January 2020 Warrants (see Note 18(e))
6,145,620
Add: Deferred loss
(223,791)
Less: January 31 exercise 1,241,490 pre-funded warrants
(3,885,746)
Fair value adjustment, January 31 realized gain
(422,102)
Derecognition of deferred loss
93,813
Amortization of deferred loss
30,240
Less: Fair value adjustment, March 31, 2020 unrealized gain
(1,715,390)
Balance, March 31, 2020
$
22,644
Less: May 28 exercise 1,185,000 Series A; 991,940 Series B
(969,133)
FV revaluation at May 28 realized loss
957,847
Derecognition of deferred loss
76,473
Amortization of deferred loss
22,488
Less: Fair value adjustment, June 30, 2020 unrealized gain
(45,897)
Balance, June 30, 2020
$
64,422
Amortization of deferred loss
5,168
Less: Fair value adjustment, September 31, 2020 unrealized gain
(21,734)
Balance, September 30, 2020
$
47,856
Amortization of deferred loss
5,168
Less: Fair value adjustment, December 31, 2020 unrealized gain
(41,677)
Balance, December 31, 2020
$
11,347
Number of warrants outstanding as of December 31, 2020
250,000
2020 May Warrants
Inception of the May 2020 Warrants (see Note 18(e))
4,526,732
Add: Deferred loss
(2,464,696)
Amortization of deferred loss
55,709
Less: Fair value adjustment, June 30, 2020 unrealized gain
(1,069,013)
Balance, June 30, 2020
$
1,048,732
Less: July 23 exercise 1,424,049 warrants
(2,082,598)
August 17 exercise of 501,000 warrants
(565,221)
Derecognition of deferred loss
1,843,332
Amortization of deferred loss
35,644
Less: Fair value adjustment, September 30, 2020 unrealized gain
(106,350)
Balance, September 30, 2020
$
173,539
Amortization of deferred loss
35,644
Less: Fair value adjustment, December 31, 2020 unrealized gain
(465,822)
Balance, December 31, 2020
$
(256,639)
Number of warrants outstanding as of December 31, 2020
648,910
2020 June Warrants
Inception of the June 2020 Warrants (see Note 18(e))
2,404,957
Add: Deferred loss
(448,877)
Amortization of deferred loss
8,609
Less: Fair value adjustment, June 30, 2020 unrealized gain
(164,711)
Balance, June 30, 2020
$
1,799,978
Amortization of deferred loss
56,571
Less: Fair value adjustment, September 30, 2020 unrealized gain
(489,496)
Balance, September 30, 2020
$
1,367,053
Amortization of deferred loss
56,571
Less: Fair value adjustment, December 31, 2020 unrealized gain
(1,472,800)
Balance, December 31, 2020
$
(49,176)
Number of warrants outstanding as of December 31, 2020
2,912,277
2020 August Warrants
Inception of the August 2020 Warrants (see Note 18(e))
3,511,115
Add: Deferred loss
(3,167,758)
Amortization of deferred loss
212,630
Less: Fair value adjustment, September 30, 2020 unrealized gain
(1,315,978)
Balance, September 30, 2020
$
(759,991)
Amortization of deferred loss
399,224
Less: Fair value adjustment, December 31, 2020 unrealized gain
(1,834,325)
Balance, December 31, 2020
$
(2,195,092)
Number of warrants outstanding as of December 31, 2020
3,399,579
2020 December Warrants
Inception of the December 2020 Warrants (see Note 18(e))
2,051,657
Add: Deferred loss
(1,278,414)
Amortization of deferred loss
40,279
Less: Fair value adjustment, December 31, 2020 unrealized gain
370,769
Balance, December 31, 2020
$
1,184,291
Number of warrants outstanding as of December 31, 2020
6,230,803
2020 Repayment Warrants
Inception of the 2020 Repayment Warrants (see Note 18(e))
Balance, September 30, 2020
$
161,720
Less: Fair value adjustment, December 31, 2020 unrealized gain
(152,272)
Balance, December 31, 2020
$
9,448
Number of warrants outstanding as of December 31, 2020
650,296
2020 Settlement Warrants
Inception of the 2020 Settlement Warrants (see Note 18(e))
807,977
Less: Fair value adjustment, June 30, 2020 unrealized gain
(232,042)
Balance, June 30, 2020
$
575,935
Less: Fair value adjustment, September 30, 2020 unrealized gain
(58,645)
Balance, September 30, 2020
$
517,290
Less: Fair value adjustment, December 31, 2020 unrealized gain
(315,617)
Balance, December 31, 2020
$
201,673
Number of warrants outstanding as of December 31, 2020
The carrying amounts for the 2017 Notes, 2019 Notes, and 2020 Notes are as follows:
2017 Convertible Notes
Balance, convertible notes December 31, 2018
14,617,336
Less: Exercise of 11,197,000 convertible notes
(13,095,938)
Fair value adjustment
3,878,791
Balance, convertible notes December 31, 2019
$
5,400,189
Fair value adjustment, (unrealized) loss due to changes in credit spread
(17,122)
Fair value adjustment, March 31, 2020 unrealized gain
(1,599,573)
Balance, convertible notes March 31, 2020
$
3,783,494
Less: Exercise of 1,016,000 convertible notes
(1,293,093)
Fair value adjustment Settlement Warrants
(807,977)
Fair value adjustment at maturity realized loss
1,214,576
Re-payment of convertible note
(2,897,000)
Balance, convertible notes December 31, 2020
$
—
2017 Convertible Notes, current
$
—
2017 Convertible Notes, non-current
$
—
2019 Convertible Notes
Fair value, May 16, 2019
9,775,000
Fair value adjustment,
(509,520)
Balance, convertible notes December 31, 2019
$
9,265,480
Fair value adjustment, March 31, 2020 unrealized gain
(1,533,410)
Fair value adjustment, March 31, 2020 realized loss
143,750
Fair value adjustment, (unrealized) loss due to changes in credit spread
(1,421,063)
Balance, convertible notes March 31, 2020
$
6,454,757
Fair value adjustment, June 30, 2020 unrealized loss
1,370,016
Fair value adjustment, June 30, 2020 realized gain
(413,681)
Fair value adjustment, (unrealized) loss due to changes in credit spread
2,303,406
Balance, convertible notes June 30, 2020
$
9,714,498
Re-payment of convertible note July 23 conversion
(3,613,341)
Re-payment of convertible note August 17 conversion
(1,263,884)
Fair value adjustment, Repayment warrants
(161,720)
Fair value adjustment, September 30, 2020 unrealized loss
136,921
Fair value adjustment, September 30, 2020 realized loss
1,034,861
Fair value adjustment, (unrealized) loss due to changes in credit spread
110,229
Balance, convertible notes September 30, 2020
$
5,957,564
Fair value adjustment, December 31, 2020 unrealized loss
66,203
Fair value adjustment, December 31, 2020 realized gain
(128,776)
Fair value adjustment, (unrealized) loss due to changes in credit spread
300,366
Balance, convertible notes December 31, 2020
$
6,195,357
2019 Convertible Notes, current
$
38,633
2019 Convertible Notes, non-current
$
6,156,724
2020 Convertible Notes
Fair value, May 26, 2020
6,449,634
Add: Deferred loss
(3,511,670)
Amortization of deferred loss
79,373
Fair value adjustment, June 30, 2020 unrealized gain
(438,810)
Fair value adjustment, June 30, 2020 realized loss
34,985
Fair value adjustment, (unrealized) loss due to changes in credit spread
5,736
Balance, convertible notes June 30, 2020
$
2,619,248
Add: Amortization of deferred loss
216,282
Fair value adjustment, September 30, 2020 unrealized gain
(186,531)
Fair value adjustment, September 30, 2020 realized loss
99,712
Fair value adjustment, (unrealized) loss due to changes in credit spread
48,015
Balance, convertible note September 30, 2020
$
2,796,726
Add: Amortization of deferred loss
221,283
Fair value adjustment, December 31, 2020 unrealized gain
(450,279)
Fair value adjustment, December 31, 2020 realized gain
(97,172)
Fair value adjustment, (unrealized) loss due to changes in credit spread
145,644
Balance, convertible note December 31, 2020
$
2,616,202
2020 Convertible Notes, current
$
37,525
2020 Convertible Notes, non-current
$
2,578,677
Derivative liability – January 2020 warrants
11,347
Derivative liability – May 2020 warrants
(256,639)
Derivative liability – June 2020 warrants
(49,176)
Derivative liability – August 2020 warrants
(2,195,092)
Derivative liability – December 2020 warrants
1,184,291
Derivative liability – Repayment warrants
9,448
Derivative liability – Settlement warrants
201,673
Balance, 2020 Convertible notes and warrants and derivative liabilities
$
1,522,054
2020 Convertible notes and warrants and derivative liabilities, current
$
37,525
2020 Convertible notes and warrants and derivative liabilities , non-current
$
1,484,529" id="sjs-B4">16. DERIVATIVE WARRANT LIABILITY FROM FINANCING AND CONVERTIBLE NOTE (a) Derivative Warrant Liability from Financing On November 17, 2017, Neovasc completed an underwritten public offering (the “2017 Public Transaction”) of 6,609,588 Series A units (the “Series A Units”) and 19,066,780 Series B units (the “Series B Units”) of the Company, at a price of $1.46 per Unit for gross proceeds of $37,487,497 before deducting the underwriting discounts and commissions and other estimated offering costs. Each Series A Unit was comprised of: (i) 0.001 Common Share (ii) one Series A Common Share purchase warrant of the Company exercisable for 0.001 Common Shares at an exercise price of $1,610 per Series A Warrant Share for a period of five years following issuance (each, a "Series A Warrant"), (iii) one Series B Common Share purchase warrant of the Company exercisable for 0.001 Common Shares at an exercise price of $1,610 per Series B Warrant Share for a period of two years following issuance (each, a "Series B Warrant"); and (iv) 0.40 Series C Warrant of the Company to purchase a unit at an exercise price of $1.46 per unit for a period of two years following issuance (each, a "Series C Unit") comprised of 0.001 Common Shares, one Series A Warrant and one Series B Warrant. Each Series B Unit was comprised of: (i) either 0.001 Common Shares or one Series D Common Share purchase warrant of the Company exercisable for 0.001 Common Shares (each, a "Series D Warrant") at an exercise price of $1,460 per Series D Warrant Share, all of which were be pre-funded except for a nominal exercise price of $0.001 per Series D Warrant Share for a period of five years following issuance, (ii) one Series A Warrant, (iii) one Series B Warrant, (iv) 0.40 Series C Warrant, and (v) 1.1765 Series F Common Share purchase warrant of the Company with each warrant exercisable for 0.001 Common Shares at an exercise price of $1,610 per Series F Warrant Share for a period of two years following issuance (each, a "Series F Warrant"). 15,493 Common Shares and 3,573,830 Series D Warrants were issued as part of the Series B Unit. Since initial issuance and during the period up to December 31, 2018, all of the 3,573,830 Series D Warrants were exercised for gross proceeds of $35,738 and 3,573 Common Shares were issued from treasury. All the warrants (collectively, the “2017 Warrants”) issued pursuant to the 2017 Public Transaction and the 2017 Private Placement (as defined below) included various price adjustment clauses, some of which caused the number of shares to be issued upon exercise to be variable, and therefore do not meet the fixed for fixed test under IAS 32 – Financial instruments; presentation. Accordingly, the warrants have been accounted for as derivative financial liabilities and measured at fair value through profit and loss (“FVTPL”). The fair values of the warrants were calculated using a binomial option pricing model and have been classified as level 3 in the fair value hierarchy. The total fair value of the warrants issued in connection with the 2017 Public Transaction, together with the Series E Warrants (as defined below) issued in connection with the Private Transaction (as defined below), was $89,470,273 which exceeded the transaction price giving rise to a loss of $45,132,259. Since the fair values of the derivatives were not determined using a valuation that only used data from observable markets, the loss on initial recognition has been recognized in income over the expected term of the instruments on a straight-line basis depending on the term of the warrants. (b) 2017 Convertible Notes On November 17, 2017, the Company also completed a brokered private placement (the “2017 Private Placement” and together with the 2017 Public Transaction the “2017 Financings”) for the sale of $32,750,000 aggregate principal amount of senior secured convertible notes of the Company (the "2017 Notes") and Series E warrants (the "Series E Warrants") to purchase one Common Share per Series E Warrant for gross proceeds of $27,837,500. The 2017 Notes were issued with an original issue price of $850 per $1,000 principal amount of note. The 2017 Notes have an 18-month term and carry an interest rate of 0.0% per annum (increasing to 15% upon an event of default) from the closing date of the Private Transaction (“Private Transaction”). On September 12, 2018, the Company and the holders of 2017 Notes amended certain terms of the 2017 Notes, including a one-year extension of the maturity date of the 2017 Notes from May 17, 2019 until May 17, 2020 and certain other amendments. Upon any event of a default, the interest rate applicable to the 2017 Notes would automatically be increased to 15% per annum. Interest on the 2017 Notes, as applicable, will commence accruing on the date of issue, will be computed on the basis of a 360-day year and twelve 30-day months and became payable in cash on January 1, 2018 and on the first day of each calendar quarter thereafter up to, and including, the maturity date. The conversion option contained within the 2017 Notes contains similar price adjustment characteristics to certain of the warrants, which precludes the 2017 Notes from being recognized within equity. The 2017 Notes contain a future-priced conversion mechanism that allows the holder of a 2017 Notes to replace the conversion price then in effect with a price (the "Alternate Conversion Price") that is 85% of the lowest volume weighted average price ("VWAP") of the Common Shares during the ten consecutive trading day period ending and including the date of delivery of the applicable conversion notice. The 2017 Notes are also subject to full ratchet anti-dilution provisions in certain circumstances. Accordingly, the Company has elected to measure the 2017 Notes at FVTPL. The Series E Warrants are also classified as derivative financial liabilities and measured at FVTPL. The fair values of the warrants were calculated using a binomial option pricing model and have been classified as level 3 in the fair value hierarchy. The fair value of the convertible debt was $26,100,900 which exceeded the transaction price giving rise to a loss of $5,113,917. Since the fair value of the convertible debt is not determined using a valuation that only uses data from observable markets, the loss on initial recognition has been deferred and will be recognized in income over the expected term of the instrument. As at December 31, 2020 the loss on initial recognition has been fully amortized. On May 26, 2020, the Company made a final payment of $2,897,000 to holders of the 2017 Notes and $1,016,000 in 2017 Notes was converted for the issuance of 500,014 Common Shares. The Company and certain holders of the 2017 Notes have also agreed to a mutual release (the “Settlement”) in return for the issuance by the Company, in the aggregate, of 500,000 Settlement Warrants to such holders. (c) 2019 Convertible Notes On May 16, 2019, the Company completed a private placement of (i) 15% original issue discount convertible notes (“2019 Notes”) with a face value of $11.5 million, for gross proceeds to the Company of $9,775,000, and (ii) 334,951 Common Shares of the Company at a price of $5.15 per Common Share, for gross proceeds to the Company of $1,725,000 . The 2019 Notes have the following key terms: · For the first year after the closing date, interest at a rate of 8% of which 5% is payable in cash on or about May 17, 2020 (when the existing 2017 Notes issued by the Company mature). The remainder is deferred and will be due on maturity of the 2019 Notes. · After the first year and until maturity, interest at a rate of 10% of which 7% is payable in cash at the end of May and November each year. The remainder is deferred and will be due on maturity of the 2019 Notes. · The 2019 Notes were issued at an original discount of $1.725 million. A separate subscription for Common Shares of the Company by the holder of the 2019 Notes was made for this amount (at market price) concurrent with the issuance of the 2019 Notes. · The Company has a prepayment option whereby it may voluntarily prepay the 2019 Notes prior to maturity. Prepayment penalties of 3% (if prepaid prior to the 1st anniversary of issuance), 2% (if prepaid between the 1st and 2nd anniversaries of issuance) and 1% (if prepaid after the 2nd anniversary) apply. · The 2019 Notes are convertible into Common Shares of the Company at the option of the holder (however, the holder may not own > 19.99% of the total outstanding Common Shares of the Company as a result of the conversion). The conversion price fluctuates from $7.50 per common share (prior to the 2nd anniversary of issuance) to $8.50 between the 2nd and 3rd anniversaries of issuance to $9.70 after the 3 rd anniversary of issuance. The conversion price would also be altered subject to certain anti-dilution provisions. Accordingly, the 2019 Notes contain two embedded derivatives: the conversion option and the prepayment option. Accordingly, the Company has elected to measure the 2019 Notes at FVTPL. The fair values of the 2019 Notes were calculated using the Cox Ross Rubinstein binomial tree model and have been classified as level 3 in the fair value hierarchy. (d) 2020 Convertible Notes On May 28, 2020, the Company issued senior secured convertible notes (“2020 Notes”) with a principal amount of $5 million, convertible at $2.815 per Common Share for 1,776,041 Common Shares and 2,573,959 Warrants (“2020 Warrants”) exercisable at $2.634 per 2020 Warrant with a 4-year term. The 2020 Notes have the following key terms: · The 2020 Notes will bear interest at the rate of 8% computed on the basis of a 360-day year and twelve 30-day months and shall be payable in additional 2020 Notes on the date that is six-months after issuance and on each six-month period thereafter up to, and including, the maturity date. · The 2020 Notes will have a maturity date of 48 months after issuance with the holder’s option for early redemption at 24 months. · Change of control redemption option with option premia of 125% in the first year, 115% in the second year, 105% in the third year, and 100% thereafter. · The 2020 Notes are convertible into Common Shares of the Company at the option of the holder (however, the holder may not own greater than 9.99% of the total outstanding Common Shares of the Company as a result of the conversion). · The conversion option caused the number of shares to be issued upon exercise to be variable, and therefore do not meet the fixed of fixed test under IAS 32- Financial instruments – presentation. Accordingly, the 2020 Notes contain three embedded derivatives: change in control redemption option, the early redemption option and the conversion option but will not be separated from the host debt instrument and the entire hybrid contract will be designated as at fair value through profit or loss. The fair values of the 2020 Notes were calculated using the Cox Ross Rubinstein binomial tree model and have been classified as level 3 in the fair value hierarchy. The fair value of the convertible debt was $6,449,634 which exceeded the transaction price giving rise to a loss of $3,511,670. Since the fair value of the convertible debt is not determined using a valuation that only uses data from observable markets, the loss on initial recognition has been deferred and will be recognized in income over the expected term of the instrument. (e) Warrants and Convertible Notes Model The 2017 Warrants were accounted for based on the level 3 fair value estimate of Series A Warrants, Series B Warrants, Series C Warrants, Series D Warrants, Series E Warrants and Series F Warrants by using a binomial option pricing model. The 2017 Notes were accounted for based on the level 3 fair value estimate of the notes based on a binomial tree model. Key assumptions used in the model at December 31, 2020,2019 and 2018 are summarized below: March 31, December 31, December 31, Valuation Date 2020 2019 2018 Price of Common Shares $ 1.46 $ 5.41 $ 6.03 Dividend Yield 0 % 0 % 0 % Historical volatility of Common Shares 100.84 % 129.54 % 141.96 % Historical volatility of index 36.07 % 11.65 % 15.37 % Volatility input 75.16 % 70.59 % 78.67 % Risk-free rate 1.11 % 1.79 % 2.52 % Credit spread 29.58 % 23.00 % 24.51 % The 2019 Notes were accounted for based on the level 3 fair value estimate of the notes based on a binomial tree model. Key assumptions used in the model at initial recognition and at December 31, 2020 and 2019 are summarized below: Valuation Date December 31, December 31, May 16, Price of Common Shares $ 0.95 $ 5.41 $ 49.46 Dividend Yield 0 % 0 % 0 % Historical volatility of Common Shares 103.42 % 124.77 % 142.38 % Historical volatility of index 23.11 % 13.76 % 15.66 % Volatility input 63.26 % 69.26 % 79.02 % Risk-free rate 0.19 % 1.65 % 2.13 % Credit spread 18.18 % 27.15 % 19.64 % The 2020 Warrants were accounted for based on the level 3 fair value estimate of the Warrants by using a binomial option pricing model. The 2020 Notes were accounted for based on the level 3 fair value estimate of the notes based on a binomial tree model. Key assumptions used in the model at initial recognition and at December 31, 2020 are summarized below: December 31, May 28, Valuation Date 2020 2020 Price of Common Shares $ 0.95 $ 2.86 Dividend Yield — % — % Historical volatility of Common Shares 116.72 % 127.50 % Historical volatility of index 20.74 % 18.91 % Volatility input 68.73 % 73.21 % Risk-free rate 0.26 % 0.32 % Credit spread 14.42 % 19.35 % The carrying amounts for the 2017 derivative warrant liability from financing are as follows: Series A Units Series B Units Series E Total Fair value adjustment, December 31, 2018 1,190,630 (8,411,543) (4,512,848) (11,733,761) Balance, Derivative financial liability December 31, 2018 $ 35,693 $ 82,523 $ 72,087 $ 190,303 Less: Exercise of 822,192 Series C Warrants (5,638) — — (5,638) Fair value adjustment, March 31, 2019 (5,575) (5,253) (6,677) (17,505) Cancellation of 35,950,340 Series A Warrants (24,480) (77,270) — (101,750) Cancellation of 22,431,506 Series E Warrants — — (65,410) (65,410) Balance, derivative warrant liability from financing as at December 31, 2019 and 2020 $ — $ — $ — $ — The carrying amounts for the 2020 derivative warrant liability from financing are as follows: 2020 January Warrants Inception of the January 2020 Warrants (see Note 18(e)) 6,145,620 Add: Deferred loss (223,791) Less: January 31 exercise 1,241,490 pre-funded warrants (3,885,746) Fair value adjustment, January 31 realized gain (422,102) Derecognition of deferred loss 93,813 Amortization of deferred loss 30,240 Less: Fair value adjustment, March 31, 2020 unrealized gain (1,715,390) Balance, March 31, 2020 $ 22,644 Less: May 28 exercise 1,185,000 Series A; 991,940 Series B (969,133) FV revaluation at May 28 realized loss 957,847 Derecognition of deferred loss 76,473 Amortization of deferred loss 22,488 Less: Fair value adjustment, June 30, 2020 unrealized gain (45,897) Balance, June 30, 2020 $ 64,422 Amortization of deferred loss 5,168 Less: Fair value adjustment, September 31, 2020 unrealized gain (21,734) Balance, September 30, 2020 $ 47,856 Amortization of deferred loss 5,168 Less: Fair value adjustment, December 31, 2020 unrealized gain (41,677) Balance, December 31, 2020 $ 11,347 Number of warrants outstanding as of December 31, 2020 250,000 2020 May Warrants Inception of the May 2020 Warrants (see Note 18(e)) 4,526,732 Add: Deferred loss (2,464,696) Amortization of deferred loss 55,709 Less: Fair value adjustment, June 30, 2020 unrealized gain (1,069,013) Balance, June 30, 2020 $ 1,048,732 Less: July 23 exercise 1,424,049 warrants (2,082,598) August 17 exercise of 501,000 warrants (565,221) Derecognition of deferred loss 1,843,332 Amortization of deferred loss 35,644 Less: Fair value adjustment, September 30, 2020 unrealized gain (106,350) Balance, September 30, 2020 $ 173,539 Amortization of deferred loss 35,644 Less: Fair value adjustment, December 31, 2020 unrealized gain (465,822) Balance, December 31, 2020 $ (256,639) Number of warrants outstanding as of December 31, 2020 648,910 2020 June Warrants Inception of the June 2020 Warrants (see Note 18(e)) 2,404,957 Add: Deferred loss (448,877) Amortization of deferred loss 8,609 Less: Fair value adjustment, June 30, 2020 unrealized gain (164,711) Balance, June 30, 2020 $ 1,799,978 Amortization of deferred loss 56,571 Less: Fair value adjustment, September 30, 2020 unrealized gain (489,496) Balance, September 30, 2020 $ 1,367,053 Amortization of deferred loss 56,571 Less: Fair value adjustment, December 31, 2020 unrealized gain (1,472,800) Balance, December 31, 2020 $ (49,176) Number of warrants outstanding as of December 31, 2020 2,912,277 2020 August Warrants Inception of the August 2020 Warrants (see Note 18(e)) 3,511,115 Add: Deferred loss (3,167,758) Amortization of deferred loss 212,630 Less: Fair value adjustment, September 30, 2020 unrealized gain (1,315,978) Balance, September 30, 2020 $ (759,991) Amortization of deferred loss 399,224 Less: Fair value adjustment, December 31, 2020 unrealized gain (1,834,325) Balance, December 31, 2020 $ (2,195,092) Number of warrants outstanding as of December 31, 2020 3,399,579 2020 December Warrants Inception of the December 2020 Warrants (see Note 18(e)) 2,051,657 Add: Deferred loss (1,278,414) Amortization of deferred loss 40,279 Less: Fair value adjustment, December 31, 2020 unrealized gain 370,769 Balance, December 31, 2020 $ 1,184,291 Number of warrants outstanding as of December 31, 2020 6,230,803 2020 Repayment Warrants Inception of the 2020 Repayment Warrants (see Note 18(e)) Balance, September 30, 2020 $ 161,720 Less: Fair value adjustment, December 31, 2020 unrealized gain (152,272) Balance, December 31, 2020 $ 9,448 Number of warrants outstanding as of December 31, 2020 650,296 2020 Settlement Warrants Inception of the 2020 Settlement Warrants (see Note 18(e)) 807,977 Less: Fair value adjustment, June 30, 2020 unrealized gain (232,042) Balance, June 30, 2020 $ 575,935 Less: Fair value adjustment, September 30, 2020 unrealized gain (58,645) Balance, September 30, 2020 $ 517,290 Less: Fair value adjustment, December 31, 2020 unrealized gain (315,617) Balance, December 31, 2020 $ 201,673 Number of warrants outstanding as of December 31, 2020 The carrying amounts for the 2017 Notes, 2019 Notes, and 2020 Notes are as follows: 2017 Convertible Notes Balance, convertible notes December 31, 2018 14,617,336 Less: Exercise of 11,197,000 convertible notes (13,095,938) Fair value adjustment 3,878,791 Balance, convertible notes December 31, 2019 $ 5,400,189 Fair value adjustment, (unrealized) loss due to changes in credit spread (17,122) Fair value adjustment, March 31, 2020 unrealized gain (1,599,573) Balance, convertible notes March 31, 2020 $ 3,783,494 Less: Exercise of 1,016,000 convertible notes (1,293,093) Fair value adjustment Settlement Warrants (807,977) Fair value adjustment at maturity realized loss 1,214,576 Re-payment of convertible note (2,897,000) Balance, convertible notes December 31, 2020 $ — 2017 Convertible Notes, current $ — 2017 Convertible Notes, non-current $ — 2019 Convertible Notes Fair value, May 16, 2019 9,775,000 Fair value adjustment, (509,520) Balance, convertible notes December 31, 2019 $ 9,265,480 Fair value adjustment, March 31, 2020 unrealized gain (1,533,410) Fair value adjustment, March 31, 2020 realized loss 143,750 Fair value adjustment, (unrealized) loss due to changes in credit spread (1,421,063) Balance, convertible notes March 31, 2020 $ 6,454,757 Fair value adjustment, June 30, 2020 unrealized loss 1,370,016 Fair value adjustment, June 30, 2020 realized gain (413,681) Fair value adjustment, (unrealized) loss due to changes in credit spread 2,303,406 Balance, convertible notes June 30, 2020 $ 9,714,498 Re-payment of convertible note July 23 conversion (3,613,341) Re-payment of convertible note August 17 conversion (1,263,884) Fair value adjustment, Repayment warrants (161,720) Fair value adjustment, September 30, 2020 unrealized loss 136,921 Fair value adjustment, September 30, 2020 realized loss 1,034,861 Fair value adjustment, (unrealized) loss due to changes in credit spread 110,229 Balance, convertible notes September 30, 2020 $ 5,957,564 Fair value adjustment, December 31, 2020 unrealized loss 66,203 Fair value adjustment, December 31, 2020 realized gain (128,776) Fair value adjustment, (unrealized) loss due to changes in credit spread 300,366 Balance, convertible notes December 31, 2020 $ 6,195,357 2019 Convertible Notes, current $ 38,633 2019 Convertible Notes, non-current $ 6,156,724 2020 Convertible Notes Fair value, May 26, 2020 6,449,634 Add: Deferred loss (3,511,670) Amortization of deferred loss 79,373 Fair value adjustment, June 30, 2020 unrealized gain (438,810) Fair value adjustment, June 30, 2020 realized loss 34,985 Fair value adjustment, (unrealized) loss due to changes in credit spread 5,736 Balance, convertible notes June 30, 2020 $ 2,619,248 Add: Amortization of deferred loss 216,282 Fair value adjustment, September 30, 2020 unrealized gain (186,531) Fair value adjustment, September 30, 2020 realized loss 99,712 Fair value adjustment, (unrealized) loss due to changes in credit spread 48,015 Balance, convertible note September 30, 2020 $ 2,796,726 Add: Amortization of deferred loss 221,283 Fair value adjustment, December 31, 2020 unrealized gain (450,279) Fair value adjustment, December 31, 2020 realized gain (97,172) Fair value adjustment, (unrealized) loss due to changes in credit spread 145,644 Balance, convertible note December 31, 2020 $ 2,616,202 2020 Convertible Notes, current $ 37,525 2020 Convertible Notes, non-current $ 2,578,677 Derivative liability – January 2020 warrants 11,347 Derivative liability – May 2020 warrants (256,639) Derivative liability – June 2020 warrants (49,176) Derivative liability – August 2020 warrants (2,195,092) Derivative liability – December 2020 warrants 1,184,291 Derivative liability – Repayment warrants 9,448 Derivative liability – Settlement warrants 201,673 Balance, 2020 Convertible notes and warrants and derivative liabilities $ 1,522,054 2020 Convertible notes and warrants and derivative liabilities, current $ 37,525 2020 Convertible notes and warrants and derivative liabilities , non-current $ 1,484,529 |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2020 | |
INCOME TAXES | |
INCOME TAXES | 17. INCOME TAXES The relationship between the expected tax expense based on the combined federal and provincial income tax rate in Canada and the reported tax expense in the consolidated statement of comprehensive income can be reconciled as follows: For the years ended December 31, 2020 2019 2018 Loss before income taxes $ (29,219,098) $ (35,102,222) $ (107,876,382) Statutory tax rate 27.00 % 27.00 % 27.00 % Recovery of income taxes based on the combined Canadian federal and provincial statutory rates (7,889,156) (9,477,600) (29,126,623) Share-based remuneration 1,324,569 861,248 1,073,142 Unrealized gain on derivatives (2,320,685) — — Effect of historical adjustments — — (16,036) Other permanent differences (250,111) 190,096 20,930,238 Unrecognized deferred tax benefits 8,061,195 8,464,437 7,183,316 Difference in tax rates between foreign jurisdictions and Canada 550,131 (9,389) 63,056 Income tax (recovery)/ expense $ (524,057) $ 28,793 $ 107,093 The components of income tax expense are shown in the following table: For the years ended December 31, 2020 2019 2018 Current tax $ (524,057) $ 28,793 $ 107,093 Deferred tax — — — Income tax expense $ (524,057) $ 28,793 $ 107,093 Recognized deferred tax assets and liabilities consist of the following: For the years ended December 31, 2020 2019 2018 Investment tax credits $ 464,888 $ 464,888 $ 528,641 Capital assets 4,287 7,392 9,382 Lease liability 224,249 194,528 — Recognized deferred tax assets $ 693,424 $ 666,808 $ 538,023 Set off of tax (693,424) (666,808) (538,023) Investment tax credits $ (464,888) $ (464,888) $ (528,641) Capital assets (4,287) (7,392) (9,382) Right of use asset (224,249) (194,528) — Recognized deferred tax liabilities $ (693,424) $ (666,808) $ (538,023) Set off of tax $ 693,424 $ 666,808 $ 538,023 The Company recognizes tax benefits on losses or other deductible amounts where the probable criteria for recognition of the deferred tax assets has been met. The Company’s unrecognized deductible temporary differences and unused tax losses for which no deferred tax asst is recognized consist of the following amounts: For the years ended December 31, 2020 2019 2018 Deductible temporary differences $ 10,616,227 $ 7,843,252 $ 5,247,143 Unused tax credits 2,416,825 2,416,825 3,054,186 Tax losses 318,477,703 273,792,687 245,013,646 $ 331,510,755 $ 284,052,764 $ 253,314,975 Unused tax losses for the Company and their expiry dates are as follows: There also losses in Israel and the US which are not subject to expiration. Expiration Date Amount 2023 6,038,836 2024 6,906,649 2025 18,105,259 2026 32,396,580 2027 135,245,992 2028 33,339,203 2029 15,799,773 2030 21,718,728 US losses $ 12,885,335 Israel losses $ 36,041,348 $ 318,477,703 |
SHARE CAPITAL
SHARE CAPITAL | 12 Months Ended |
Dec. 31, 2020 | |
SHARE CAPITAL | |
SHARE CAPITAL | 18. SHARE CAPITAL All Common Shares are equally eligible to receive dividends and the repayment of capital and represent one vote at shareholders’ meetings. All Preferred Shares have no voting rights at shareholders’ meetings but on liquidation, winding-up or other distribution of the Company’s assets are entitled to participate in priority to Common Shares. There are no Preferred Shares issued and outstanding. (a) Authorized Unlimited number of Common Shares without par value. Unlimited number of Preferred Shares without par value. We may issue our Preferred Shares from time to time in one or more series. The terms of each series of Preferred Shares, including the number of shares, the designation, rights, preferences, privileges, priorities, restrictions, conditions and limitations, will be determined at the time of creation of each such series by our board of directors, without shareholder approval, provided that all Preferred Shares will rank equally within their class as to dividends and distributions in the event of our dissolution, liquidation or winding-up. All share and per share amounts are net of share issuance costs and have been adjusted to retroactively reflect the impact of the September 18, 2018 reverse stock split on a 1 for 100 basis and the June 25, 2019 reverse stock split on a 1 for 10 basis. Common Shares Contributed Number Amount Surplus Balance, January 1, 2018 102,916 $ 171,803,816 $ 23,056,846 Common Shares issued from exercise of Series B Warrants (i) 1,315,281 54,119,300 — Common Shares issued from exercise of Series C Warrants (ii) 9,452 15,854,206 — Common Shares issued from exercise of Series D Warrants (iii) 1,699 1,021,183 — Common Shares issued from exercise of Series F Warrants (iv) 295,740 42,990,737 — Common Shares issued from exercise of 2017 Notes (v) 1,076,583 18,582,374 — Common Shares issued for cash on exercise of options 49 88,917 (88,917) Share-based payments — — 3,292,877 Balance, December 31, 2018 2,801,720 $ 304,460,533 $ 26,260,806 Common Shares issued from public offerings (vi) 2,222,222 7,802,417 315,611 Common Shares issued from private placement (vii) 334,951 1,664,662 — Common Shares issued from exercise Series B Warrants (viii) 223,304 16,931 — Common Shares issued from exercise of Series C Warrants (ix) 822 1,186,027 — Common Shares issued from exercise of 2017 Notes (x) 3,074,136 13,095,938 — Common Shares issued from exchange of Series A and Series E Warrants (xi) 49,624 234,173 — Share-based payments — — 3,189,808 Balance, December 31, 2019 8,706,779 $ 328,460,681 $ 29,766,225 Common Shares issued from public offerings Series A (xii) 1,185,000 4,111,950 — Common Shares issued from exercise of Series B Pre-funded warrants (xiii) 1,241,490 3,885,746 — Transaction costs for both Series A and Series B — (462,880) — Broker warrants (See Note 17 (f)) — (82,597) 82,597 Common Shares issued from Warrant conversion (xiv) 672,937 969,133 — Common Shares issued from conversion of 2017 Notes (xv) 500,014 1,293,093 — Common Shares issued from public offering (xvi) 3,883,036 9,591,099 — Transaction costs for public offering — (1,215,274) — Broker warrants (See Note 17 (f)) — (162,467) 162,467 Common Shares issued from public offering (xvii) 4,532,772 12,238,484 — Transaction costs for public offering — (1,057,302) — Broker warrants (See Note 17 (f)) — (242,989) 242,989 Common Shares issued from Warrant conversion (xviii) 1,925,049 7,718,346 — Common Shares issued from public offerings Series A (xix) 6,230,803 5,333,567 — Transaction costs for public offerings Series A — (659,410) — Broker warrants (See Note 17 (f)) — (96,114) 96,114 Common Shares issued from exercise of restricted share units 50,986 151,938 (151,938) Common Shares issued from exercise of stock options 50 378 (174) Share-based payments — — 4,846,776 Balance, December 31, 2020 28,928,916 $ 369,775,383 $ 35,045,056 (i) During the year ended December 31, 2018, 1,315,281 Common Shares were issued on the exercise of 35,128,148 Series B Warrants. The related derivative liability of $32,988,998 (see Note 18) was derecognized at the dates of exercise. (ii) During the year ended December 31, 2018, of the 10,273,972 Series C Warrants initially granted, 9,451,780 were exercised for 9,452 Common Shares, 9,451,780 Series A Warrants and 9,451,780 Series B Warrants and cash proceeds of $13,799,659. The related derivative financial liability of $4,459,249 (see Note 18) was derecognized at the dates of exercise. (iii) During the year ended December 31, 2018, 1,699 Common Shares were issued for the exercise of 1,698,841 of the Series D Warrants that were issued as part of the Series B Units for cash proceeds of $16,988. The related derivative financial liability of $1,004,195 was derecognized (see Note 18) at the date of exercise. (iv) During the year ended December 31, 2018, 295,740 Common Shares were issued on the exercise of the 22,431,506 Series F Warrants. The related derivative financial liability of $29,085,125 (see Note 18) was derecognized at the dates of exercise. (v) During the year ended December 31, 2018, 1,076,583 Common Shares were issued on the conversion of $17,640,000 of aggregate principal amount of 2017 Notes. The $20,555,832 aggregate principal amount of 2017 Notes (see Note 18) was derecognized at the date of exercise. (vi) During the year ended December 31, 2019, 2,222,222 Common Shares were issued for gross proceeds of $10,000,000 less $1,270,000 in underwriting commission, a $315,611 fair value charge for 144,444 Broker Warrants issued (see Note 18(e)) and $611,972 in other share issuance costs. (vii) On May 16, 2019, the Company completed a private placement of (i) 15% original issue discount convertible notes with a face value of $11.5 million, for gross proceeds to the Company of $9,775,000, and (ii) 334,951 Common Shares of the Company at a price of $5.15 per Common Share, for net proceeds of $1,664,662. (viii) During the year ended December 31, 2019, 223,304 Common Shares were issued on the exercise of 822,192 Series B Warrants. The related derivative liability of $16,931(see Note 16) was derecognized at the dates of exercise. (ix) During the year ended December 31, 2019, the remaining 822,192 Series C Warrants were exercised for 822 Common Shares, 822,192 Series A Warrants and 822,192 Series B Warrants and net cash proceeds of $1,186,027. The related derivative financial liability of $5,638 (see Note 16) was derecognized at the dates of exercise. (x) During the year ended December 31, 2019, 3,074,136 Common Shares were issued on the conversion of $11,197,000 of aggregate principal amount of 2017 Notes. The $13,095,938 aggregate principal amount of 2017 Notes (see Note 16) was derecognized at the date of exercise. (xi) During the year ended December 31, 2019, the Company entered into exchange agreements with the holders of the remaining Series A Warrants and Series E Warrants to issue 49,624 Common Shares for the surrender and cancellation of all 35,950,340 Series A Warrants and all 22,431,506 Series E Warrants outstanding on the basis of 0.00085 of a Common Share for each Warrant. (xii) On January 6, 2020, the Company completed a registered direct offering of an aggregate of 1,185,000 Series A Units and 1,241,490 Series B units at a price of $4.1351 per Series A Unit and $4.135 per Series B Unit for aggregate gross proceeds to the Company of approximately $10,000,000, less $462,880 in underwriting commission, a $82,597 fair value charge for 157,721 Broker Warrants issued (see Note 18(g)) and $185,883 in other share issuance costs. (xiii) During the three months ended March 31, 2020, 1,241,490 Common Shares were issued on the conversion of Series B Pre-funded warrants from the January 6, 2020 registered direct offering (xiv) On May 28, 2020, the Company issued an aggregate of 672,937 Exchange Shares for the surrender and cancellation of 2,176,490 January 2020 warrants outstanding on the basis of approximately 0.3092 of an Exchange Share for each warrant. (xv) On May 26, 2020, 500,014 Common Shares were issued on the conversion of $1,016,000 of aggregate principal amount of 2017 Notes. The fair value of 2017 Notes related to this conversion (see Note 16) was derecognized at the date of exercise. (xvi) On June 16, 2020, the Company completed a registered direct offering of an aggregate 3,883,036 units (the "Units") at a price of $2.973 per unit for aggregate gross proceeds to the Company of approximately $11,500,000 less $1,215,274 in underwriting commission, a $162,467 fair value charge for Compensation Warrants "2020 Compensation Warrants" (see Note 18 (g)), and $278,482 in other share issuance costs. (xvii) On August 12, 2020 the Company completed a registered direct offering of an aggregate 4,532,772 Common Shares at a price of $2.775 per Common Share for aggregate gross proceeds to the Company for approximately $12,600,000 less $1,057,302 in underwriting commission, a $242,989 fair value charge for Compensation Warrants "2020 Compensation Warrants" (see Note 18 (g)), and $109,918 in other share issuance costs. (xviii) On July 23, 2020 and August 12,2020, 1,925,049 Commons shares were issued on the conversion of May 2020 warrants. Using the exercise proceeds of $4,877,225, the Company has prepaid a portion of the 2019 Convertible Note. (xix) On December 8, 2020 the Company completed a registered direct offering of an aggregate 6,230,803 Common Shares at a price of $0.9801 per Common Share for aggregate gross proceeds to the Company for approximately $6,100,000 less $659,410 in underwriting commission, a $96,114 fair value charge for Compensation Warrants "2020 Compensation Warrants" (see Note 18 (g)), and $200,386 in other share issuance costs. (b) Stock options The Company adopted an equity-settled stock option plan under which the directors of the Company may grant options to purchase Common Shares to directors, officers, employees and service providers (the “optionees”) of the Company on terms that the directors of the Company may determine within the limitations set forth in the stock option plan. Effective June 4, 2018, at the Annual General Meeting (“AGM”), the board of directors and shareholders of the Company approved an amendment to the Company’s incentive stock option plan to increase the number of options available for grant under the plan to 15% of the number of Common Shares of the Company outstanding at any time. Options under the Company’s stock option plan granted to directors, officers and employees vest immediately on the grant date, unless a vesting schedule is specified by the board. The directors of the Company have discretion within the limitations set forth in the stock option plan to determine other vesting terms on options granted to directors, officers, employees, and others. The minimum exercise price of a stock option cannot be less than the applicable market price of the Common Shares on the date of the grant and the options have a maximum life of ten years from the date of grant. The following table summarizes stock option activity for the respective years as follows: Weighted Average average remaining Number of exercise contractual life options price (years) Options outstanding, January 1, 2018 5,707 $ 3,849.00 Granted 366,053 Exercised (49) Forfeited (1,178) Expired (807) 1,813.70 Options outstanding, December 31, 2018 369,726 $ 76.78 7.88 Options exercisable, December 31, 2018 146,263 $ 127.04 7.62 Granted 697,150 4.27 Exercised — — Forfeited (13,344) 58.64 Expired (1,867) 4,997.06 Options outstanding, December 31, 2019 1,051,665 $ 20.63 7.09 Options exercisable, December 31, 2019 398,596 $ 35.69 6.97 Granted 2,495,100 2.48 Exercised (50) 4.10 Forfeited (468,238) 23.10 Expired (1,329) 3,498.28 Options outstanding, December 31, 2020 3,077,148 $ 4.10 Options exercisable, December 31, 2020 1,081,760 $ 6.01 6.93 The following table lists the options outstanding as at December 31, 2020 by exercise price: Weighted average Weighted average Options remaining term Options remaining term Exercise price outstanding (yrs) exercisable (yrs) $2.11 486,875 7.72 138,125 $2.17 695,000 7.76 173,750 $2.27 1,500 7.61 1,500 $2.42 640,000 7.47 176,032 $3.35 493,766 7.05 133,495 $4.10 481,150 6.23 251,550 $4.11 - $3,878.39 278,857 6.07 207,308 3,077,148 1,081,760 The following table lists the options outstanding as at December 31, 2019 by exercise price: Weighted average Weighted average Options remaining term Options remaining term Exercise price outstanding (yrs) exercisable (yrs) $4.10 561,050 7.23 140,450 7.23 $5.00 130,950 7.41 32,738 7.41 $8.80 88,800 6.92 59,242 6.92 $27.20 263,250 6.75 162,268 6.75 $27.30 - $9,276.86 7,615 4.71 3,898 3.69 1,051,665 398,596 The following table lists the options outstanding as at December 31, 2018 by exercise price: Weighted average Weighted average Options remaining term Options remaining term Exercise price outstanding (yrs) exercisable (yrs) $8.80 89,900 7.92 29,976 7.92 $27.20 270,000 7.75 112,566 7.75 $60.00 1,055 7.25 — — $60.01 - $8,917.93 8,771 4.39 3,721 1.48 369,726 146,263 During the year ended December 31, 2020, the Company recorded $4,905,812, as compensation expense for share-based compensation awarded to eligible optionees (years ended December 31, 2019 and 2018: $3,189,808 and $3,292,877, respectively). The Company used the Black-Scholes Option Pricing Model to estimate the fair value of the options at each measurement date using the following weighted average assumptions: 2020 2019 2018 Weighted average fair value $ 1.99 $ 3.60 $ 16.40 Weighted average exercise price $ 2.48 $ 4.30 $ 30.30 Weighted average share price at grant $ 2.48 $ 4.30 $ 30.30 Dividend yield nil nil nil Volatility 124 % 141 % 72 % Risk-free interest rate 0.94 % 1.51 % 2.24 % Expected life 4 years 4 years 4 years Forfeiture rate 7.00 % 7.00 % 7.00 % (c) Restricted share units On December 2, 2019, the Company adopted a Restricted Share Unit (“RSU”) Plan which provides for RSUs to be awarded to directors, officers, employees and service providers. The maximum number of Common Shares authorized and reserved for issuance under the RSU Plan is equal to 5% of the issued and outstanding Common Shares of the Company. The shareholders of the Company approved the amended RSU Plan at the annual meeting of the shareholders on September 3, 2020, which falls within 12 months of the effective date of the RSU Plan. The granting of RSUs is considered an equity-settled share-based payment transaction. The fair value of the grant was determined by multiplying the Company’s share price at the grant date by the number of RSUs granted and is recognized over the vesting period of the grant. The expense recognized for the year ended December 31, 2020, was $973,219 (years ended December 31, 2019 and 2018: $22,848 and $nil, respectively). As of December 31, 2020, the total remaining unrecognized compensation cost related to RSUs amounted to approximately $1,136,595 which will be amortized over the remaining vesting periods. RSU transactions are summarized as follows: Weighted Average Grant Date Number of Fair Value RSUs Per Share Outstanding, December 31, 2018 — — Granted 152,956 $ Vested — — Outstanding, December 31, 2019 152,956 $ 2.98 Granted 706,044 $ 2.72 Vested/Exercised (50,986) $ 0.85 Cancelled/Forfeited (30,000) $ 2.74 Outstanding, December 31, 2020 778,014 $ 2.76 (d) Share appreciation rights On September 22, 2020, the Company adopted a Share Appreciation Rights (“SAR”) Plan which provides for SARs to be awarded to directors, officers, employees and service providers. The granting of SARs is considered a cash-settled payment transaction. The fair value of the SAR is measured applying an option pricing model, taking into account the terms and conditions on which the SARs are granted. The liability of the SAR is measured initially at grant date and at the end of each reporting period until settled. The fair value of the SAR as of December 31, 2020, is $295,179 which will be recorded over the vesting period of the SAR. The Company recognizes a $59,036 expense at December 31, 2020. SAR transactions are summarized as follows: Weighted Average Number of Grant Date Fair SARs Value Per Share Outstanding, December 31, 2019 and 2018 — — Granted 1,811,768 $ Vested — — Outstanding, December 31, 2020 1,811,768 $ (e) Warrants The following table lists the number of warrants issued on November 17, 2017 as well as the number issued, exercised, and exchanged since then and the remaining warrants outstanding at December 31, 2020. As at November 17, As at December 31, Warrants 2017 Issued Exercised Exchanged 2019 and 2020 Series A 25,676,368 10,273,972 — (35,950,340) — Series B 25,676,368 10,273,972 (35,950,340) — — Series C 10,273,972 — (10,273,972) — — Series D 3,573,830 — (3,573,830) — — Series E 22,431,506 — — (22,431,506) — Series F 22,431,506 — (22,431,506) — — On September 18, 2018, the Company effected a share consolidation (reverse stock split in the ratio of 1 for 100 Common Shares outstanding) of the Common Shares on the basis of one post-consolidation Common Shares for every 100 pre-consolidation Common Shares. On June 25, 2019, the Company effected a share consolidation (reverse stock split) of its issued and outstanding Common Shares the basis of one post-consolidation Common Share for every ten pre-consolidation Common Shares. The number of 2017 Warrants and aggregate principal amount of 2017 Notes were not affected by the consolidations, but the Common Shares issuable upon exercise of the 2017 Warrants or conversion of the 2017 Notes was adjusted proportionally to the share consolidation ratios. The September 2018 share consolidation adjusted the notional exercise price of the Series A Warrants, Series B Warrants and Series E Warrants. There were no Series D Warrants and Series F Warrants outstanding at the date of the September 2018 share consolidation. There were no 2017 Warrants outstanding at the time of the June 2019 share consolidation. On March 12, 2019, the Company entered into exchange agreements with the holders of all of its outstanding Series A Warrants and Series E Warrants, pursuant to which the Company issued an aggregate of 49,624 Common Shares for the surrender and cancellation of all of the Series A Warrants and Series E Warrants outstanding, on the basis of 0.085 of a Common Share for each Series A Warrant or Series E Warrant (the “Exchange”). Following completion of the Exchange, there are no longer any warrants outstanding from the 2017 Financings. Under IFRIC 19, the surrender and cancellation of Series A warrants and Series E warrants created a loss on extinguishment of $39,367 and $24,565, respectively. On January 6, 2020, the Company completed a registered direct offering of an aggregate of 1,185,000 Series A Units and 1,241,490 series B units: Series B Units at a price of $4.1351 per Series A Unit and $4.135 per Series B Unit for aggregate gross proceeds to the Company of approximately $10,000,000. Each Series A Unit consists of one Common Share of Neovasc and one warrant to purchase one Common Share. Each Warrant entitles the holder to acquire one Common Share of Neovasc at a price of US$4.1351 at any time prior to four years following the date of issuance. Each Series B Unit consists of one pre-funded warrant of Neovasc and one Warrant. Each Pre-Funded Warrant entitles the holder to acquire one Common Share of Neovasc at a price of US$0.0001 at any time until the exercise in full of each Pre-Funded Warrant. All Pre-Funded Warrants were exercised as at December 31, 2020. The 2020 Warrants include a cashless exercise option. In accordance with IAS 32 - Financial instruments; presentation, the 2020 warrants have been accounted for as derivative financial liabilities and measured at FVTPL. The fair value of $6,145,620 for the 2020 Series A warrants and Series B Pre-Funded warrants was computed using the Black-Scholes pricing model with the following assumptions: a) average risk-free interest rate of 1.60%; b) expected life of 1 years; c) the price of the stock on the grant date of $3.47; d) expected volatility of 70%; and e) no expected dividend payments. On May 28, 2020, the Company issued an aggregate of 672,937 Exchange Shares for the surrender and cancellation of 2,176,490 January 2020 warrants outstanding on the basis of approximately 0.3092 of an Exchange Share for each warrant. Subsequent to the exchange, 250,000 Warrants remain outstanding. On May 26, 2020, the Company granted 2,573,959 2020 Warrants with an exercise price of $2.634 and term of 4 years. The 2020 Warrants are convertible into Common Shares of the Company at the option of the holder (however, the holder may not own greater than 9.99% of the total outstanding Common Shares of the Company as a result of the conversion). The 2020 Warrants include a cashless exercise option. In accordance with IAS 32 - Financial instruments; presentation, the 2020 warrants have been accounted for as derivative financial liabilities and measured at FVTPL. The fair values of $4,526,732 of the warrants were calculated using a binomial option pricing model and have been classified as level 3 in the fair value hierarchy. On July 23, 2020 1,424,049 warrants were exercised and on August 17, 2020 501,000 warrants were exercised leaving 648,910 warrants remaining. The total exercise proceeds of $4,877,225 net of interest and prepayment penalty has been applied to the principal of the 2019 Note. On May 28, 2020 the Company entered into a settlement agreement to issue 500,000 settlement warrants ("Settlement Warrants"). Each Settlement Warrant entitles the holder to purchase one Common Share in the capital of the Company at an exercise price of $2.634 per Settlement Warrant for a period of 4 years following issuance and are subject to transfer/leak-out restrictions, including volume and public float restrictions. The Settlement Warrants include a cashless exercise option. In accordance with IAS 32 - Financial instruments; presentation, the Settlement Warrants have been accounted for as derivative financial liabilities and measured at FVTPL. The fair value of $807,977 of the Settlement Warrants were calculated using the Cox Ross Rubinstein binomial tree model and have been classified as level 3 in the fair value hierarchy. On June 16, 2020, the Company completed a registered direct offering of an aggregate 3,883,036 units (the "Units") at a price of $2.973 per unit for aggregate gross proceeds to the Company of approximately $11,500,000 less $1,215,274 in underwriting commission, a $162,467 fair value charge for Compensation Warrants "2020 Compensation Warrants" (see Note 17 (a)), and $278,482 in other share issuance costs. Each Unit consists of one Common Share of the Company and three-quarters of one warrant (each whole warrant, a "Warrant") to purchase one Common Share issuing 2,912,277 warrants in total. Each Warrant entitles the holder to acquire one Common Share of the Company at a price of $2.88 at any time prior to June 16, 2025. The 2020 Warrants include a cashless exercise option. In accordance with IAS 32 - Financial instruments; presentation, the 2020 warrants have been accounted for as derivative financial liabilities and measured at FVTPL. The fair value of $2,404,957 for the 2020 Series A warrants was computed using the Black-Scholes pricing model with the following assumptions: a) average risk-free interest rate of 0.32%; b) expected life of 2 years; c) the price of the stock on the grant date of $2.47; d) expected volatility of 70%; and e) no expected dividend payments. On July 23, 2020, the Company issued the 2020 Repayment Warrants ("Repayment Warrants") to purchase up to 481,778 Common Shares at an exercise price of $7.50 per Common Share for a period of five years following issuance. The fair value of $134,718 for the 2020 Repayment Warrants was computed using the Black-Scholes pricing model with the following assumptions: a) average risk-free interest rate of 0.29%; b) expected life of 2 years; c) the price of the stock on the grant date of $2.54; d) expected volatility of 70.0%; and e) no expected dividend payments. On August 12, 2020 the Company completed a registered direct offering of an aggregate 4,532,772 Common Shares at a price of $2.775 per Common Share for aggregate gross proceeds to the Company for approximately $12,600,000 less $1,057,302 in underwriting commission, a $242,989 fair value charge for Compensation Warrants "2020 Compensation Warrants" (see Note 17 (a)), and $109,918 in other share issuance costs. Each Common Share was sold with 0.75 of a Common Share purchase warrant (each whole warrant, a "Warrant") issuing 3,399,579 warrants in total. Each Warrant entitles the holder to acquire one Common Share of the Company at an exercise price of $2.69 per share at any time prior to the date which is five years following the date of issuance. The 2020 Warrants include a cashless exercise option. In accordance with IAS 32 - Financial instruments; presentation, the 2020 Warrants have been accounted for as derivative financial liabilities and measured at FVTPL. The fair value of $3,511,115 for the Warrants was computed using the Black-Scholes pricing model with the following assumptions: a) average risk-free interest rate of 0.32%; b) expected life of 2 years; c) the price of the stock on the grant date of $2.70; d) expected volatility of 70%; and e) no expected dividend payments. On August 17, 2020, the Company issued the 2020 Repayment Warrants to purchase up to 168,518 Common Shares at an exercise price of $7.50 per Common Share for a period of five years following issuance. The fair value of $27,002 for the 2020 Repayment Warrants was computed using the Black-Scholes pricing model with the following assumptions: a) average risk-free interest rate of 0.31%; b) expected life of 2 years; c) the price of the stock on the grant date of $2.13; d) expected volatility of 68.0%; and e) no expected dividend payments. On December 8, 2020 the Company completed a registered direct offering of an aggregate 6,230,803 Common Shares at a price of $0.9801 per Common Share for aggregate gross proceeds to the Company for approximately $6,100,000 less $659,410 in underwriting commission, a $96,114 fair value charge for Compensation Warrants "2020 Compensation Warrants" (see Note 17 (a)), and $178,968 in other share issuance costs. Each Common Share was sold with one Common Share purchase warrant (each whole warrant, a "December Warrant") issuing 6,230,803 warrants in total. Each December Warrant entitles the holder to acquire one Common Share of the Company at an exercise price of $0.86 per share at any time prior to the date which is five years following the date of issuance. The December Warrants include a cashless exercise option. In accordance with IAS 32 - Financial instruments; presentation, the 2020 warrants have been accounted for as derivative financial liabilities and measured at FVTPL. The fair value of $2,051,657 for the December Warrants was computed using the Black-Scholes pricing model with the following assumptions: a) average risk-free interest rate of 0.33%; b) expected life of 2 years; c) the price of the stock on the grant date of $0.86; d) expected volatility of 70%; and e) no expected dividend payments. (g) Broker Warrants In February and March of 2019, the Company completed two $5 million underwritten public offerings and issued 144,444 broker warrants (“Broker Warrants”) as part of the underwriter’s commission. The Company uses the Black-Scholes pricing model to calculate the fair value of the Broker Warrants. The model requires six key inputs: risk free interest rate, exercise price, market price at date of issue, expected dividend yield, expected life and expected volatility, all of which, other than the exercise price and market price, are estimates by management of the Company. The fair value for the February 28, 2019 $5 million public offering and 72,222 broker warrants was computed using the Black-Scholes pricing model with the following assumptions: a) average risk-free interest rate of 2.51%; b) expected life of 3 years; c) the price of the stock on the grant date of $4.50; d) expected volatility of 81%; and e) no expected dividend payments. The fair value for the March 15, 2019 $5 million public offering and 72,222 broker warrants was computed using the Black-Scholes pricing model with the following assumptions: a) average risk-free interest rate of 2.43%; b) expected life of 3 years; c) the price of the stock on the grant date of $4.50; d) expected volatility of 82%; and e) no expected dividend payments. The Black-Scholes model was used to compute broker warrant fair values because it is the most commonly used pricing model and is considered to produce a reasonable estimate of fair value. As part of the underwriter's compensation in the January 2020 Financing, the Company issued the 2020 Broker Warrants to purchase up to 157,721 Common Shares at an exercise price of $5.1689 per Common Share for a period of three years following issuance. The fair value of $82,597 for the 2020 broker warrants was computed using the Black-Scholes pricing model with the following assumptions: a) average risk-free interest rate of 1.60%; b) expected life of 1 years; c) the price of the stock on the grant date of $3.47; d) expected volatility of 70%; and e) no expected dividend payments. On June 16, 2020, the Company issued the 2020 Compensation Warrants to purchase up to 252,397 Common Shares at an exercise price of $3.71 per Common Share for a period of five years following issuance. The fair value of $162,467 for the 2020 compensation warrants was computed using the Black-Scholes pricing model with the following assumptions: a) average risk-free interest rate of 0.32%; b) expected life of 2 years; c) the price of the stock on the grant date of $2.47; d) expected volatility of 70.0%; and e) no expected dividend payments. On August 12, 2020, the Company issued the 2020 Compensation Warrants to purchase up to 294,630 Common Shares at an exercise price of $3.47 per Common Share for a period of five years following issuance. The fair value of $242,989 for the 2020 compensation warrants was computed using the Black-Scholes pricing model with the following assumptions: a) average risk-free interest rate of 0.32%; b) expected life of 2 years; c) the price of the stock on the grant date of $2.70; d) expected volatility of 70.0%; and e) no expected dividend payments. On December 8, 2020, the Company issued the 2020 Compensation Warrants to purchase up to 405,002 Common Shares at an exercise price of $1.22 per Common Share for a period of five years following issuance. The fair value of $96,114 for the 2020 compensation warrants was computed using the Black-Scholes pricing model with the following assumptions: a) average risk-free interest rate of 0.33%; b) expected life of 2 years; c) the price of the stock on the grant date of $0.86; d) expected volatility of 70.0%; and e) no expected dividend payments. |
SEGMENT INFORMATION
SEGMENT INFORMATION | 12 Months Ended |
Dec. 31, 2020 | |
SEGMENT INFORMATION | |
SEGMENT INFORMATION | 19 . SEGMENT INFORMATION The Company’s operations are in one business segment: the development, manufacturing and marketing of medical devices. Each of the Company’s product lines has similar characteristics, customers, distribution and marketing strategies, and are subject to similar regulatory requirements. Substantially all of the Company’s long-lived assets are located in Canada. The Company carries on business in Canada, the United States and Europe. The Company earns revenue from sales to customers in the following geographic locations: For the years ended December 31, 2020 2019 2018 REVENUE Europe $ 1,810,362 $ 1,863,032 $ 1,600,633 Rest of the World 147,000 229,000 148,500 $ 1,957,362 $ 2,092,032 $ 1,749,133 Sales to the Company’s three largest customers accounted for approximately 13%, 13%, and 9% of the Company’s sales for the year ended December 31, 2020. Sales to the Company’s three largest customers accounted for approximately 12%, 9%, and 8% of the Company’s sales for the year ended December 31, 2019. Sales to the Company’s three largest customers accounted for approximately 28%, 9%, and 9% of the Company’s sales for the year ended December 31, 2018. |
EMPLOYEE BENEFITS EXPENSE
EMPLOYEE BENEFITS EXPENSE | 12 Months Ended |
Dec. 31, 2020 | |
EMPLOYEE BENEFITS EXPENSE | |
EMPLOYEE BENEFITS EXPENSE | 20. EMPLOYEE BENEFITS EXPENSE For the years ended December 31, 2020 2019 2018 Salaries and wages $ 10,536,409 $ 9,583,936 $ 8,477,335 Pension plan and employment insurance 506,025 458,276 418,303 Contribution to defined contribution pension plan 198,342 182,449 170,358 Health benefits 765,948 651,269 476,217 Cash-based employee expenses $ 12,006,724 $ 10,875,930 $ 9,542,213 Employee termination expenses — 26,050 761,354 Share-based payments 4,905,812 3,189,808 3,292,877 Total employee expenses $ 16,912,536 $ 14,091,788 $ 13,596,444 |
DEPRECIATION, SHARE-BASED PAYME
DEPRECIATION, SHARE-BASED PAYMENTS, EMPLOYEE AND OTHER EXPENSES | 12 Months Ended |
Dec. 31, 2020 | |
DEPRECIATION, SHARE-BASED PAYMENTS, EMPLOYEE AND OTHER EXPENSES | |
DEPRECIATION, SHARE-BASED PAYMENTS, EMPLOYEE AND OTHER EXPENSES | 21. DEPRECIATION, SHARE-BASED PAYMENTS, EMPLOYEE AND OTHER EXPENSES For the years ended December 31, 2020 2019 2018 EXPENSES Selling expenses Share-based payment $ 320,886 $ 188,930 $ 170,416 Cash-based employee expenses 891,784 526,769 352,837 Other expenses 984,133 930,286 829,912 $ 2,196,803 $ 1,645,985 $ 1,353,165 General and administrative expenses Depreciation 280,949 182,202 60,206 Share-based payments 2,820,369 1,748,660 2,147,832 Cash-based employee expenses 3,149,313 2,725,814 2,498,005 Litigation expenses 284,729 81,171 540,125 Employee termination expenses — 26,050 761,354 Accretion on collaboration, license and settlement agreements provision 308,938 693,047 5,129,758 Legal costs from financing activities 3,617,485 1,089,245 1,608,260 Other expenses 3,619,370 3,467,543 3,693,396 $ 14,081,153 $ 10,013,732 $ 16,438,936 Product development and clinical trials expenses Depreciation 487,152 459,419 323,920 Share-based payments 1,764,557 1,252,218 974,629 Cash-based employee expenses 7,965,627 7,623,347 6,691,371 Other expenses 10,184,259 10,685,975 8,011,544 20,401,595 20,020,959 16,001,464 TOTAL EXPENSES $ 36,679,551 $ 31,680,676 $ 33,793,565 Depreciation per Statements of Cash Flows $ 768,101 $ 641,621 $ 384,126 Share-based payments per Statements of Cash Flows $ 4,905,812 $ 3,189,808 $ 3,292,877 Cash-based employee expenses (see Note 20) $ 12,006,724 $ 10,875,930 $ 9,542,213 |
LOSS PER SHARE
LOSS PER SHARE | 12 Months Ended |
Dec. 31, 2020 | |
LOSS PER SHARE | |
LOSS PER SHARE | 22. LOSS PER SHARE Both the basic and diluted loss per share have been calculated using the loss attributable to shareholders of the Company as the numerator. The weighted average number of Common Shares outstanding used for basic loss per share for the year ended December 31, 2020, amounts to 16,667,810 (years ended December 31, 2019 and 2018: 6,511,672 and 1,416,011, respectively) For the years ended December 31, 2020 2019 2018 Weighted average number of Common Shares 16,667,810 6,511,672 1,416,011 Loss for the year $ (28,695,041) $ (35,131,015) $ (107,983,475) Basic and diluted loss per share $ (1.72) $ (5.40) $ (76.26) Instruments that could potentially have a dilutive effect on the Company’s weighted average shares outstanding include all of the outstanding convertible notes, restricted share units, stock options, stock appreciation rights, and warrants. These instruments are currently excluded from the calculation of diluted earnings per share as they are antidilutive for the periods presented. |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 12 Months Ended |
Dec. 31, 2020 | |
RELATED PARTY TRANSACTIONS | |
RELATED PARTY TRANSACTIONS | 23. RELATED PARTY TRANSACTIONS The Company’s key management personnel include members of the board of directors, executive officers, and former executive officers. The Company provides salaries or cash compensation, and other non-cash benefits to directors and executive officers. For the years ended December 31, 2020 2019 2018 Short-term employee benefits Employee salaries and bonuses $ 2,348,709 $ 2,235,926 $ 2,112,605 Directors fees 265,833 245,000 270,000 Social security and medical care costs 80,949 77,284 63,529 2,695,491 2,558,210 2,446,134 Post-employment benefits Contributions to defined contribution pension plan 36,114 32,435 34,162 Employee termination expense — — 296,592 Share-based payments 1,726,690 1,555,857 2,270,023 Total key management remuneration $ 4,458,295 $ 4,146,502 $ 5,046,911 |
CONTINGENT LIABILITIES AND PROV
CONTINGENT LIABILITIES AND PROVISIONS | 12 Months Ended |
Dec. 31, 2020 | |
CONTINGENT LIABILITIES AND PROVISIONS | |
CONTINGENT LIABILITIES AND PROVISIONS | 24. CONTINGENT LIABILITIES AND PROVISIONS Litigation Litigation resulting from third party claims has been, and may be, costly and time-consuming and could divert the attention of management and key personnel from our business operations. Although we intend to vigorously defend ourselves against any future claims that may occur, we cannot assure that we will succeed in appealing and defending any of these claims and that judgments will not be upheld against us. If we are unsuccessful in our appeal and defense of these claims or unable to settle the claims in a manner satisfactory to us, we may be faced with significant loss of intellectual property rights that could have a material adverse effect on the Company and its financial condition. Claims by CardiAQ in Germany On June 23, 2014, Edwards Lifesciences CardiAQ LLC (“CardiAQ”) filed a complaint against Neovasc in Munich, Germany (the “German Court”) requesting that Neovasc assign its right to one of its European patent applications to CardiAQ. After a hearing held on December 14, 2016, the German Court rendered its decision on June 16, 2017, granting co-ownership of the European patent application to CardiAQ but denying their claim for full entitlement. On July 14, 2017, Neovasc filed a notice of appeal against the German Court’s decision with the Appeals Court of Munich (the ‘Appeals Court’). On July 20, 2017, CardiAQ filed a notice of appeal with the same court. The decision of the Appeals Court of Munich was rendered on March 21, 2019, wherein it amended the decision of the German Court and dismissed the complaint of CardiAQ in full. There are no monetary awards associated with these matters and no damages award was recognized. On March 30, 2020, the German Supreme Court granted CardiAQ leave to appeal the Appeals Court decision and at a hearing held on August 4, 2020 the German Supreme Court set aside the prior decision of the Appeals Court and remanded the matter back to the Appeals Court for a new hearing and decision.The hearing at the Appeals Court was held on February 25, 2021 and a decision from the Appeals Court will be handed down on May 6, 2021. There are no monetary awards associated with these matters and no damages award was recognized. Claims by CardiAQ in the United States On March 24, 2017, CardiAQ filed a related lawsuit in the in the U.S. District Court for the District of Massachusetts (the “Court”), asserting two claims for correction of patent inventorship as to Neovasc’s U.S. Patents Nos. 9,241,790 and 9,248,014. On October 4, 2017, CardiAQ amended its pleading to add a third claim for correction of patent inventorship as to Neovasc’s U.S. Patent No. 9,770,329. The lawsuit did not seek money damages and would not have prevented the Company from practicing these patents. The Company moved to dismiss the complaint on November 16, 2017, and the Court denied this motion on September 28, 2018. On April 17, 2019, the Company resolved the three claims for correction of patent inventorship and, without reaching conclusion on the merits of the claims, the parties agreed to the correction of patent inventorship and added co-inventors to the three patents in question. Each party will bear its own costs. There were no monetary awards associated with these matters and no damages award was recognized. Other Matters By way of Amended Statement of Claim in Federal Court of Canada Action T-1831-16 (the “Action”), Neovasc Inc. and Neovasc Tiara Inc. (the “Neovasc Defendants”) were added as defendants to an existing action commenced by Edwards Lifesciences PVT, Inc. and Edwards Lifesciences (Canada) Inc. (collectively the “Edwards Plaintiffs”) against Livanova Canada Corp., Livanova PLC, Boston Scientific and Boston Scientific Ltd. (collectively, the “BSC/Livanova Defendants”). The Action was first filed in October 2016 and first concerned an allegation by the Edwards Plaintiffs that the manufacturing, assembly, use, sale and export of the Lotus Aortic Valve devices by the BSC/Livanova Defendants infringes on the Edwards Plaintiffs’ patents. In February 2017, the Neovasc Defendants were added to the Edwards Plaintiffs’ claim making related allegations. On January 22, 2019, the Company announced that pursuant to a settlement reached with the Edwards Plaintiffs, the patent infringement action that the Edwards Plaintiffs had previously commenced in the Federal Court of Canada against the Neovasc Defendants, Boston Scientific and Livanova, has been dismissed on a no-costs basis. No damages award was recognized. On August 3, 2018, the Company announced that it had entered into a collaboration and licensing agreement with Penn Medicine and the Gorman Cardiovascular Research Group at the University of Pennsylvania (collectively, “UPenn”), which resolved certain potential claims against the Company that had been previously disclosed. The collaboration and licensing agreement with UPenn contemplates certain fees being paid by Neovasc to UPenn, including fees in installments totaling $2.65 million over the four years following the agreement's execution. In addition, Neovasc agreed to pay UPenn a royalty of 1.0-1.5% on the annual net sales of the Tiara following the first commercial sale of the Tiara. Also contained in the collaboration and licensing agreement are buy-out clauses that allow Neovasc, or an acquirer of Neovasc or the Tiara assets, to buy out these royalty obligations. As part of the collaboration and licensing agreement, certain potential claims against the Neovasc Defendants were resolved. When the Company assesses that it is more likely that a present obligation exists at the end of the reporting period and that the possibility of an outflow of economic resources embodying economic benefits is probable, a provision is recognized and contingent liability disclosure is required. The Company has accrued $470,349 as at December 31, 2020 representing the discounted value of future payments anticipated under the settlement agreement with UPenn. The Company has not accrued for any future royalty payments in the settlement agreement with UPenn as the amounts are undeterminable at this time. On September 7, 2018, Endovalve Inc. and Micro Interventional Devices, Inc. (collectively, “Endovalve”) filed a complaint in the United States District Court for the District of New Jersey against the Neovasc Defendants, alleging claims for trade secret misappropriation, breach of contract, and unfair competition. Endovalve alleged that it was a former customer of Neovasc Inc., and that the Neovasc Defendants improperly used trade secrets in the development of Tiara. The complaint sought injunctive relief, money damages, and attorneys’ fees. On February 20, 2019, the Company announced that it had entered into a settlement agreement with Endovalve. The settlement agreement with Endovalve contemplates certain fees being paid by Neovasc to Endovalve, including settlement fees in installments totaling $3 million over the two and a half years following the agreement's execution. In addition, Neovasc agreed to pay Endovalve a royalty of 1.3% on the annual net sales of the Tiara following the first commercial sale of the Tiara. Also contained in the settlement agreement are buy-out clauses that allow Neovasc, or an acquirer of Neovasc or the Tiara assets, to buy out these royalty obligations. As part of the settlement agreement, the claims against the Neovasc Defendants were dismissed with prejudice. When the Company assesses that it is more likely that a present obligation exists at the end of the reporting period and that the possibility of an outflow of economic resources embodying economic benefits is probable, a provision is recognized and contingent liability disclosure is required. The Company has accrued $716,251 as at December 31, 2020 representing the discounted value of future payments anticipated under the settlement agreement with Endovalve. The Company has not accrued for any future royalty payments in the settlement agreement with Endovalve as the amounts are undeterminable at this time. Shareholder Litigation On November 5, 2020, a putative shareholder class action lawsuit was filed in the United States District Court for the Southern District of New York against Neovasc Inc. (“Neovasc”), Fred Colen, Neovasc’s CEO, and Christopher Clark, Neovasc’s CFO: Gonzalez v. Neovasc Inc., et al., Case No. 7:20-cv-09313 (S.D.N.Y.) (the “Gonzalez Action”). The complaint in the Gonzalez Action purports to bring suit on behalf of a class consisting of all persons and entities that purchased or otherwise acquired Neovasc securities between November 1, 2019 and October 27, 2020, inclusive. On November 25, 2020, a second putative shareholder class action lawsuit was filed in the United States District Court for the Southern District of New York against Neovasc and Messrs. Colen and Clark: Siple v. Neovasc Inc., et al., Case No. 1:20-cv-09948 (S.D.N.Y.) (the “Siple Action”). The complaint in the Siple Action purports to bring suit on behalf of a class consisting of all persons and entities that purchased or otherwise acquired Neovasc securities between October 10, 2018 and October 27, 2020, inclusive. The complaints in both the Gonzalez Action and the Siple Action contain similar allegations that the defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about Neovasc’s business, operations, and prospects. Specifically, the complaints’ allegations relate to the premarket approval process with the U.S. Food and Drug Administration for Nevoasc’s Reducer medical device for the treatment of refractory angina. Both complaints assert the same two causes of action: (i) a violation of Section 10(b) of the Securities Exchange Act of 1934 (“Exchange Act”) and Rule 10b-5 promulgated thereunder against all defendants; and (ii) a violation of Section 20(a) of the Exchange Act against Messrs. Colen and Clark. On January 26, 2021, the court issued an order consolidating the Gonzalez Action and the Siple Action under a new case style: In re Neovasc Inc. Securities Litigation, Case No. 7:20-cv-09313 (S.D.N.Y.) (the “Consolidated Action”). The order also appointed Pratap Golla as Lead Plaintiff and the law firms of Pomerantz LLP and Holzer & Holzer LLC as Co-Lead Counsel for the Class in the Consolidated Action. The order further directed Lead Plaintiff to file a Consolidated Amended Complaint in the Consolidated Action. On February 3, 2021, the court granted Lead Plaintiff’s request for an extension of time to file a Consolidated Amended Complaint, which is presently due on or before March 19, 2021. |
GOVERNMENT ASSISTANCE
GOVERNMENT ASSISTANCE | 12 Months Ended |
Dec. 31, 2020 | |
GOVERNMENT ASSISTANCE [Abstract] | |
GOVERNMENT ASSISTANCE | 25. GOVERNMENT ASSISTANCE The Company’s application for the Paycheck Protection Program (PPP) loan for approximately $530,000 was approved and forgiven by the U.S. Small Business Administration. This program helps businesses keep their workforce employed during the COVID-19 crisis by providing relief in the form of a forgivable loan used for payroll costs. The amount is advanced in the form of a loan that is forgivable if the borrowers, being certain wholly-owned subsidiaries of the Company, allocate the funds principally for the purposes of retaining employees in the US through the payment of payroll and group health care benefits costs and other expenses in accordance with the loan agreement. As a wholly forgivable loan this amount was recorded as Other Income on the Statement of loss and comprehensive loss in the period in which it was forgiven. In response to the negative economic impact of COVID-19, the Government of Canada announced the Canada Emergency Wage Subsidy (“CEWS”) program in April 2020, retroactive to March 15, 2020. CEWS provides a wage subsidy to eligible employers based on certain criteria, including demonstration of revenue declines as result of COVID-19. The Company has determined that it has qualified for this subsidy from March 15, 2020 through September 2020 and has, accordingly, applied for, and for certain periods received, the CEWS. The submissions are approved and the Company received approximately $765,715 from the CEWS program and recorded as Other Income on the Statement of loss and comprehensive loss. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Dec. 31, 2020 | |
SUBSEQUENT EVENTS | |
SUBSEQUENT EVENTS | 26. SUBSEQUENT EVENTS On January 15, 2021, the Company received a "not approvable" letter from the FDA regarding its PMA submission for the Reducer. The FDA reviewed Reducer for treatment of patients with refractory angina pectoris despite guideline directed medical therapy, who are unsuitable for revascularization by coronary artery bypass grafting or by percutaneous coronary intervention. On February 9, 2021, the Company announced that it had received written notification from the Nasdaq notifying the Company that it has regained compliance with the minimum bid price requirement under Nasdaq Listing Rule 5550(a)(2) pursuant to Nasdaq Listing Rule 5810 for continued listing on the Nasdaq. On February 9, 2021, the Company announced that it had received written notification from the Nasdaq notifying the Company that it has regained compliance with the minimum bid price requirement under Nasdaq Listing Rule 5550(a)(2) pursuant to Nasdaq Listing Rule 5810 for continued listing on the Nasdaq. On February 12, 2021, the Company completed the registered direct February 2021 Offering of 36,000,000 February 2021 Units at a price of $2.00 per February 2021 Unit, with each February 2021 Unit comprised of one Common Share and one-half of one Common Share purchase warrant for aggregate gross proceeds to the Company for approximately $72,000,000 before deducting placement agent’s fee and estimated expenses of the February 2021 Offering payable by the Company. On February 25, 2021, the Company announced that it had received written notification from the Nasdaq notifying the Company that it has regained compliance with the minimum market value requirement under Nasdaq Listing Rule 5550(b)(2) pursuant to Nasdaq Listing Rule 5810 for continued listing on the Nasdaq. |
AUTHORIZATION OF FINANCIAL STAT
AUTHORIZATION OF FINANCIAL STATEMENTS | 12 Months Ended |
Dec. 31, 2020 | |
AUTHORIZATION OF FINANCIAL STATEMENTS | |
AUTHORIZATION OF FINANCIAL STATEMENTS | 27. AUTHORIZATION OF FINANCIAL STATEMENTS The consolidated financial statements for the years ended December 31, 2020, 2019 and 2018 (including comparatives) were approved by the audit committee on behalf of the board of directors on March 8, 2021. (signed) Chris Clark Chris Clark, Chief Financial Officer (signed) Paul Geyer Paul Geyer, Director |
SIGNIFICANT ACCOUNTING POLICI_2
SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2020 | |
SIGNIFICANT ACCOUNTING POLICIES | |
Foreign currency translation | (a) Foreign currency translation The presentation currency of the consolidated financial statements is the United States dollar. Where functional currency is different than presentation currency, all revenues, expenses and cash flows for each year are translated into the presentation currency using average rates for the year, or the rates in effect at the date of the transaction for significant transactions. Assets and liabilities are translated using the exchange rate at the end of the year and stockholders’ equity was translated at historical rates. The resulting translation adjustment was recorded as accumulated foreign currency translation adjustment in accumulated other comprehensive income. Foreign currency denominated non-monetary assets and liabilities are translated at the historical rates of exchange in effect on the date the asset was acquired or liability incurred. Foreign currency denominated revenues and expenses are translated at the rate of exchange on the date on which such transactions occur. Foreign currency gains or losses arising on the settlement of foreign-currency denominated monetary assets and liabilities are recognized in profit or loss in the year in which they arise. |
Financial Instruments | (b) Financial Instruments Financial assets and financial liabilities are recognized on the Company’s consolidated statement of financial position when the Company becomes party to the contractual provisions of the instrument. Financial assets are de-recognized when the contractual rights to the cash flows from the financial asset expire or when the contractual rights to those assets are transferred. Financial liabilities are de-recognized when the obligation specified in the contract is discharged, cancelled or expired. Financial assets The Company classifies its cash and cash equivalents, restricted cash, and accounts receivable at amortized cost. Such assets are recognized initially at fair value plus any directly attributable transaction costs. Subsequent to initial recognition loans and receivables are measured at amortized cost using the effective interest method. Financial liabilities The Company classifies its accounts payable and accrued liabilities as other financial liabilities. These financial liabilities are recognized initially at fair value less any directly attributable transaction costs. Subsequent to initial recognition, these financial liabilities are measured at amortized cost using the effective interest method. The Company classifies its convertible notes as a financial liability at fair value through profit and loss. The entire instrument is recognized initially at fair value with any subsequent changes in fair value recognized as an unrealized gain or loss in the statement of loss and comprehensive loss. All related transaction costs are expensed as incurred. Derivative instruments, including derivative instruments embedded in other contracts and instruments designated for hedging activities, are recognized as either asset or liabilities in the statement of financial position and measured at fair value. The Company has not used derivative instruments to hedge exposures to cash flow or foreign currency risks. Any change in the fair value of a derivative or an embedded derivative not designated as a hedging instrument is recognized as an unrealized gain or loss in the statement of loss and comprehensive loss. |
Cash and cash equivalents | (c) Cash and cash equivalents Cash and cash equivalents include cash on hand and short-term, highly liquid investments that are readily convertible to known amounts of cash within 90 days of purchase. |
Restricted cash | (d) Restricted cash Restricted cash represents secured cash that cannot be accessed by the Company without prior authorization from parties not related to the Company. Restricted cash is disclosed separately as part of other non-current assets. |
Inventory | (e) Inventory Inventory is valued at the lower of cost and net realizable value for finished goods, work in progress and raw materials. Cost is determined on a first-in, first-out basis. Cost of finished goods and work in progress includes direct material and labor costs and an allocation of manufacturing overhead and applicable shipping and handling costs. In determining net realizable value, the Company considers factors such as obsolescence, future demand for inventory and contractual arrangements with customers. |
Property and equipment | (f) Property and equipment Items of property and equipment are measured at cost less accumulated depreciation and accumulated impairment losses. As no finite useful life for land can be determined, related carrying amounts are not depreciated. Depreciation of property and equipment is recognized in profit or loss over the estimated useful lives using the following rates and methods: Building 4% declining balance Leasehold improvements amortized over the life of the lease Production & development equipment 30% declining balance Computer hardware 30% declining balance Computer software 100% declining balance Office equipment 20% declining balance Gains or losses arising on the disposal of property and equipment are determined as the difference between the disposal proceeds and the carrying amount of the assets and are recognized in profit or loss. |
Impairment of assets | (g) Impairment of assets Financial instruments The Company uses the expected credit loss (ECL) model for calculating impairment of financial assets and recognizes expected credit losses as loss allowances for assets measured at amortized cost. ECLs are based on the difference between the contractual cash flows due in accordance with the contract and all the cash flows that the Company expects to receive, which is determined based on historical information, external indicators, and forward-looking information through use of a provision matrix. For trade receivables, the Company applies the simplified approach permitted by IFRS 9, which requires expected lifetime losses to be recognized from initial recognition of the assets. Non-financial assets The carrying amounts of the Company’s non-financial assets, other than inventories are reviewed at each reporting date to determine whether there is any indication of impairment. If any such indication exists, then the asset’s recoverable amount is estimated. The recoverable amount of an asset or cash-generating unit is the greater of its value in use and its fair value less costs of disposal. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset. For the purpose of impairment testing, if it is not possible to estimate the recoverable amount of an individual asset, the asset is included in the cash-generating unit to which it belongs and the recoverable amount of the cash-generating unit is estimated. As a result, some assets are tested individually for impairment and some are tested at the cash-generating unit level. A cash-generating unit is the smallest group of assets that generates cash inflows from continuing use that are largely independent of the cash inflows of other assets or groups of assets. An impairment loss is recognized if the carrying amount of an asset or its cash-generating unit exceeds its estimated recoverable amount. Impairment losses are recognized in profit or loss. Impairment losses recognized in respect of cash-generating units are allocated first to reduce the carrying amount of any goodwill allocated to the units and then to reduce the carrying amounts of the other assets in the unit on a pro-rata basis. |
Contingent Liabilities and Provisions | (i) Contingent Liabilities and Provisions Provisions for product warranties, legal disputes, onerous contracts or other claims are recognized when the Company has a present legal or constructive obligation as a result of a past event, it is probable that an outflow of economic resources will be required from the Company and amounts can be estimated reliably. No liability is recognized if an outflow of economic resources as a result of present obligations is not probable. Such situations are disclosed as contingent liabilities unless the outflow of resources is remote. |
Employee benefits | (j) Employee benefits The Company provides short-term employee benefits and post-employment benefits to current employees. The short-term employee benefits include wages, salaries, social security contributions, paid annual leave, paid sick leave and medical care. Short-term employee benefits obligations are measured on an undiscounted basis and are expensed as the related service is provided. The Company provides post-employment benefits through defined contribution plans, including contributions to the Canadian Pension Plan and individual Registered Retirement Savings Plans of qualified employees. Contributions to defined contribution pension plans are recognized as an employee benefit expense in the years during which services are rendered by employees. |
Revenue recognition | (k) Revenue recognition Revenues from the Reducer are recognized at a point in time as follows: Effective January 1, 2018, upon adoption of IFRS 15 Revenue from Contracts with Customers, the Company recognizes revenue for goods provided when the performance obligations have been completed, when control of the goods transfer to the customer, when the goods have been accepted by the customer and when collectability is reasonably assured. The consideration for goods provided is measured at the fair value of the consideration received. The standalone selling prices are determined based on the agreed upon list prices at which the Company sells its services in separate transactions. Payment terms with customers vary by country and contract. Standard payment terms are 60 days from invoice date. The transaction price is documented on the contract or purchase order and agreed to by the customer. The adoption of this new standard has had no significant impact on the Company’s consolidated financial statements. Revenue recognition policy subsequent to January 1, 2018 The Company earned revenue from one source: the Reducer. Revenues from this source were recognized as follows: Revenue from the sale of goods was recognized when the Company transferred to the buyer the significant risks and rewards of ownership of the goods, the Company retained neither continuing managerial involvement nor effective control over the goods sold, the amount of revenue was measured reliably, it was probable that the economic benefits associated with the transaction will flow to the Company and the costs incurred or to be incurred in respect of the transaction was measured reliably. Reducer For the Reducer, this criteria was met upon time of shipment at shipping point. |
Research and development | (l) Research and development The Company is engaged in research and development. Research costs are expensed as incurred. Development costs are expensed in the year incurred, unless they meet the criteria for capitalization. The criteria include that development costs can be measured reliably, the product or process is technically and commercially feasible, future economic benefits are probable, and the Company intends to and has sufficient resources to complete development and to use or sell the asset. Other development expenditure is recognized in profit or loss as incurred. Management reviews the applicable criteria on a regular basis and if the criteria are no longer met, any remaining unamortized balance is written off as a charge to profit or loss. Research and development costs are reduced by any scientific research and experimental development tax credits to which the Company is entitled. |
Interest income and interest expense | (m) Interest income and interest expense Interest income comprises interest income from high interest savings accounts and guaranteed investment certificates. Interest income is recognized in profit or loss, using the effective interest method. |
Operating lease | (n) Operating lease Prior to January 1, 2019, leases where the Company does not assume substantially all the risks and rewards of ownership are classified as operating leases. Payments on operating leases are recognized as an expense on a straight-line basis over the lease term. Associated costs, such as maintenance and insurance, are expensed as incurred. See Note 3(t) IFRS 16 – Leases for discussion on treatment subsequent to January 1, 2019. |
Income taxes | ( o) Income taxes Tax expense represents current tax and deferred tax. Tax is recognized in profit or loss except to the extent it relates to items recognized in other comprehensive income or directly in equity. Current tax is based on the taxable profits for the year, and is calculated using tax rates that have been enacted or substantively enacted by the reporting date. Deferred tax is recognized, using the liability method, on temporary differences arising between the tax bases of assets and liabilities and their respective carrying amounts in the consolidated financial statements. However, deferred tax is not accounted for if it arises from initial recognition of an asset or liability in a transaction, other than a business combination, that at the time of the transaction affects neither the accounting profit nor taxable profit. Deferred tax assets are recognized to the extent that it is probable that the future taxable profit will be available against which the deductible temporary differences and the carry forward of unused tax credits and unused tax losses can be utilized. Deferred tax assets and liabilities are offset when the Company has a right and intention to offset tax assets and liabilities from the same taxation authority. Deferred tax is determined using tax rates (and laws) that have been enacted or substantively enacted by the reporting date and are expected to apply when the related deferred tax asset is realized or the deferred tax liability settled. |
Equity | (p) Equity Share capital represents the value of shares that have been issued. Any transaction costs associated with the issuing of shares are deducted from share capital. From time to time the Company may issue units consisting of common shares and common share purchase warrants. The Company estimates the fair value of the common shares based on their market price on the date of the issuance of the units. The residual difference, if any, between the unit price and the fair value of each common share represents the fair value attributable to each warrant. Any transaction costs associated with the issuance of units would be apportioned between the common shares and warrants based on their relative fair values. Professional, consulting, regulatory fees and other costs that are directly attributable to financing transactions are deferred until such time as the transactions are completed. Share issue costs are charged to share capital when the related shares are issued. Costs relating to financing transactions that are abandoned are charged to profit and loss. Contributed surplus includes the fair value of vested stock options and share units (see Note 3(q)). Deficit includes all current and prior year losses. |
Share-based payments | ( q) Share-based payments The Company has an equity-settled share-based stock option plan. The Company grants stock options to buy Common Shares of the Company to directors, officers, employees and consultants (see Note 18 (b)). The fair value of the stock options awarded to employees, directors, officers and service providers is measured at grant date, using the Black-Scholes Option Pricing Model with assumptions for risk-free interest rates, dividend yields, volatility factors of the expected market price of the Company's Common Shares, based on historic market price volatility, and an expected life of the options. The fair value of the options is recognized as an employee expense, with a corresponding increase in equity, over the year that the employees unconditionally become entitled to the options. The amount recognized as expense is adjusted to reflect the number of stock options expected to vest. For stock options with non-vesting conditions, the grant date fair value of the options is recognized to reflect such conditions and there is no true-up for differences between expected and actual outcomes. The Company uses a fair value-based method of accounting for restricted share units (“RSUs”) which are assumed to settle on an equity basis. The Company grants restricted share units to the Company’s directors, officers, employees and consultants (see Note 18(c)). The fair value of the RSUs awarded to employees, directors, officers and service providers is measured at market date, using the Black-Scholes Option Pricing Model with assumptions for risk-free interest rates, dividend yields, volatility factors of the expected market price of the Company's Common Shares, based on historic market price volatility, and an expected life of the restricted share units. The cost is recorded over the vesting period of the award to the same expense category of the award’s recipients compensation costs and the corresponding entry is recorded in equity. |
Loss per share | (r) Loss per share Loss per share is computed using the weighted average number of Common Shares outstanding during the year. Diluted loss per share is computed using the treasury stock method and weighted average number of Common Shares outstanding during the year for the effects of all potentially dilutive shares. |
Operating segment | (s) Operating segment The Company operates its business in one segment. The Company reports information about revenues from customers for the Reducer, from geographical areas, and from major customers. |
Government assistance and government grants | (t) Government assistance and government grants Government grants are recognized when there is a reasonable assurance that the grant will be received and that the Company will comply with all conditions related to the grant. A grant without specified future performance conditions is recognized in income when the grant proceeds are receivable. A grant that imposes specified future performance conditions is recognized in income when those conditions are met. Government grants related to current expenses are recognized as income over the period necessary to match them with the related expenses, for which they are intended to compensate, on a systematic basis. Government grants related to specific projects are recognized as income over the period necessary to match them with the related project costs, for which they are intended to compensate, on a systematic basis. Government grants in the form of forgivable loans are treated as a government grant when there is reasonable assurance that the entity will meet the terms for forgiveness of the loan. Government grants received before the income recognition criteria are satisfied are presented as a liability in the statement of financial position. Government refundable advances provided to the Company to finance research and development activities on a risk-sharing basis are considered part of the Company’s operating activities and are therefore presented as cash flows from operating activities in the statement of cash flows. (see Note 25) |
Accounting standard issued and effective January 1, 2019 | (u) Accounting standard issued and effective January 1, 2019 IFRS 16 – Leases IFRS 16 ‘Leases’ replaces IAS 17 ‘Leases’ along with three Interpretations (IFRIC 4 ‘Determining whether an Arrangement contains a Lease’, SIC 15 ‘Operating Leases-Incentives’ and SIC 27 ‘Evaluating the Substance of Transactions Involving the Legal Form of a Lease’). The new Standard has been applied using the modified retrospective approach, with the cumulative effect of adopting IFRS 16 being recognized in equity as an adjustment to the opening balance of retained earnings for the current period. Prior periods have not been restated. For contracts in place at the date of initial application, the Company has elected to apply the definition of a lease from IAS 17 and IFRIC 4 and has not applied IFRS 16 to arrangements that were previously not identified as lease under IAS 17 and IFRIC 4. The Company has elected to include initial direct costs in the measurement of the right-of-use asset for operating leases in existence at the date of initial application of IFRS 16, being January 1, 2019. At this date, the Company has also elected to measure the right-of-use assets at an amount equal to the lease liability adjusted for any prepaid or accrued lease payments that existed at the date of transition. The Company performed an impairment review on the right-of-use assets at the date of initial application. On transition, for leases previously accounted for as operating leases with a remaining lease term of less than 12 months and for leases of low-value assets, the Company has applied the optional exemptions to not recognize right-of-use assets but to account for the lease expense on a straight-line basis over the remaining lease term. On transition to IFRS 16 the weighted average incremental borrowing rate applied to lease liabilities recognized under IFRS 16 was 10%. The Company has benefited from the use of hindsight for determining the lease term when considering options to extend and terminate leases. The following is a reconciliation of total operating lease commitments at December 31, 2018 to the lease liabilities recognized at January 1, 2019: Total operating lease commitments disclosed at December 31, 2018 $ 1,431,188 Recognition exemptions: Leases of low value assets — Leases with remaining lease term of less than 12 months — Variable lease payments not recognized — Operating lease liabilities before discounting 1,431,188 Discounted using incremental borrowing rate (142,082) Operating lease liabilities 1,289,106 Total lease liabilities recognized under IFRS 16 at January 1, 2019 $ 1,289,106 For any new contracts entered into on or after January 1, 2019, the Company considers whether a contract is, or contains a lease. A lease is defined as ‘a contract, or part of a contract, that conveys the right to use an asset (the underlying asset) for a period of time in exchange for consideration’. To apply this definition the Company assesses whether the contract meets three key evaluations which are whether: a. the contract contains an identified asset, which is either explicitly identified in the contract or implicitly specified by being identified at the time the asset is made available to the Company. b. the Company has the right to obtain substantially all of the economic benefits from use of the identified asset throughout the period of use, considering its rights within the defined scope of the contract. c. the Company has the right to direct the use of the identified asset throughout the period of use. The Company assess whether it has the right to direct ‘how and for what purpose’ the asset is used throughout the period of use. Measurement and recognition of leases as a lessee At the lease commencement date, the Company recognizes a right-of-use asset and a lease liability on the statement of financial position. The Company depreciates the right-of-use assets on a straight-line basis from the lease commencement date to the earlier of the end of the useful life of the right-of-use asset or the end of the lease term. The Company also assesses the right-of-use asset for impairment when such indicators exist. At the commencement date, the Company measures the lease liability at the present value of the lease payments unpaid at that date, discounted using the interest rate implicit in the lease if that rate is readily available. If the interest rate implicit in the lease is not readily available, the Company discounts using the Company’s incremental borrowing rate. Lease payments included in the measurement of the lease liability are made up of fixed payments (including in-substance fixed), variable payments based on an index or rate, amounts expected to be payable under a residual value guarantee and payments arising from options reasonably certain to be exercised. Subsequent to initial measurement, the liability will be reduced for payments made and increased for interest. It is remeasured to reflect any reassessment or modification, or if there are changes in in-substance fixed payments. When the lease liability is remeasured, the corresponding adjustment is reflected in the right-of-use asset, or profit and loss if the right-of-use asset is already reduced to zero. The Company has elected to account for short-term leases and leases of low-value assets using the practical expedients. Instead of recognizing a right-of-use asset and lease liability, the payments in relation to these are recognized as an expense in profit or loss on a straight-line basis over the lease term. On the statement of financial position, right-of-use assets have been included under non-current assets and lease liabilities have been included under current and non-current liabilities. |
SIGNIFICANT ACCOUNTING POLICI_3
SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
SIGNIFICANT ACCOUNTING POLICIES | |
Schedule of depreciation of property and equipment | Building 4% declining balance Leasehold improvements amortized over the life of the lease Production & development equipment 30% declining balance Computer hardware 30% declining balance Computer software 100% declining balance Office equipment 20% declining balance |
Summary of reconciliation of total operating lease commitments to the lease liabilities recognized | Total operating lease commitments disclosed at December 31, 2018 $ 1,431,188 Recognition exemptions: Leases of low value assets — Leases with remaining lease term of less than 12 months — Variable lease payments not recognized — Operating lease liabilities before discounting 1,431,188 Discounted using incremental borrowing rate (142,082) Operating lease liabilities 1,289,106 Total lease liabilities recognized under IFRS 16 at January 1, 2019 $ 1,289,106 |
MANAGING CAPITAL (Tables)
MANAGING CAPITAL (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
MANAGING CAPITAL | |
Schedule of the capital for the company | 2020 2019 2018 2017 Convertible Notes $ — $ 5,400,189 $ 14,617,336 2017 Derivative warrant liability — — 190,303 2019 Convertible Notes 6,195,357 9,265,480 — 2020 Convertible notes and warrants and derivative warrant liabilities 1,522,054 — — Equity 1,977,517 (14,445,765) (8,332,838) Capital $ 9,694,928 $ (219,904) $ 6,284,498 |
FINANCIAL RISK MANAGEMENT (Tabl
FINANCIAL RISK MANAGEMENT (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
FINANCIAL RISK MANAGEMENT | |
Schedule of financial liabilities measured at fair value | As at December 31, 2018: Level 1 Level 2 Level 3 Total Financial liabilities at fair value through profit and loss 2017 Convertible Notes $ — $ — $ 14,617,336 $ 14,617,336 Derivative warrant financial liability from financing $ — $ — $ 190,303 $ 190,303 As at December 31, 2019: Level 1 Level 2 Level 3 Total Financial liabilities at fair value through profit and loss 2017 Convertible Notes $ — $ — $ 5,400,189 $ 5,400,189 2019 Convertible Notes $ — $ — $ 9,265,480 $ 9,265,480 As at December 31, 2020: Level 1 Level 2 Level 3 Total Financial liabilities at fair value through profit and loss 2019 Convertible Notes $ — $ — $ 6,195,357 $ 6,195,357 2020 Convertible notes and warrants and derivative warrant liabilities $ — $ — $ 1,522,054 $ 1,522,054 |
Schedule of carrying amounts of financial assets and financial liabilities | Note 2020 2019 2018 Assets at amortized cost Cash and cash equivalents 6 $ 12,935,860 $ 5,292,833 $ 9,242,809 Accounts receivable 7 987,057 715,696 647,143 Restricted cash 11 470,460 462,874 439,736 $ 14,393,377 $ 6,471,403 $ 10,329,688 Other financial liabilities at amortized cost Accounts payable and accrued liabilities (current) 14 $ 7,243,500 $ 7,794,456 $ 4,610,560 Accounts payable and accrued liabilities (non-current) 14 — 1,186,601 2,241,979 Financial liabilities at fair value through profit and loss 2017 Convertible Notes (current) 16(b) $ — $ 5,400,189 $ 1,423,224 2017 Convertible Notes (non-current) 16(b) — — 13,194,112 2017 Derivative warrant liability (current) 16(b) — — 190,303 2019 Convertible Notes (current) 16(c) 38,633 1,090,561 — 2019 Convertible Notes (non-current) 16(c) 6,156,724 8,174,919 — 2020 Convertible Notes (current) 16(d) 37,525 — — 2020 Convertible notes and warrants and derivative warrant liabilities (non-current) 16(d) 1,484,529 — — $ 14,960,911 $ 23,646,726 $ 21,660,178 |
Summary of ageing of trades payables | Trade payables were aged as follows as at December 31, 2020 and do not include accrued liabilities. All trades payables are current liabilities: Total Current $ 1,612,254 31-60 days 869,498 Over 60 days 1,223,874 $ 3,705,626 |
Summary of analysis of the contractual maturities of the non-derivative accrued liabilities | The following is an analysis of the contractual maturities of the Company’s non-derivative accrued liabilities as at December 31, 2020: Within One Year Collaboration, license and settlement agreements (undiscounted) $ 1,250,000 $ 1,250,000 |
CASH AND CASH EQUIVALENTS - (Ta
CASH AND CASH EQUIVALENTS - (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
CASH AND CASH EQUIVALENTS | |
Schedule of cash and cash equivalents | December 31, December 31, December 31, 2020 2019 2018 Cash held in: United States dollars $ 11,631,843 $ 4,489,501 $ 8,173,582 Canadian dollars 809,429 525,371 483,730 Euros 494,588 277,961 585,497 $ 12,935,860 $ 5,292,833 $ 9,242,809 |
ACCOUNTS RECEIVABLE (Tables)
ACCOUNTS RECEIVABLE (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
ACCOUNTS RECEIVABLE | |
Schedule of trade and other receivables | December 31, December 31, December 31, 2020 2019 2018 Trade accounts receivable $ 322,201 $ 597,505 $ 637,421 Other accounts receivable 116,905 118,191 9,722 Income tax receivable 547,951 — — $ 987,057 $ 715,696 $ 647,143 |
Schedule of short-term aging analysis | December 31, December 31, December 31, 2020 2019 2018 Not past due $ 195,545 $ 472,257 $ 361,469 Past due 0 - 30 days — 14,139 18,614 30 - 60 days 35,114 20,000 — 60 - 90 days 11,543 — 54,428 90 – 120 days — — — Over 120 days 100,000 114,676 238,600 Loss allowance (20,001) (23,567) (35,690) $ 322,201 $ 597,505 $ 637,421 |
FINANCE LEASE RECEIVABLE (Table
FINANCE LEASE RECEIVABLE (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
FINANCE LEASE RECEIVABLE | |
Schedule of finance lease receivables | December 31, December 31, December 31, 2020 2019 2018 Current $ 95,849 $ 86,764 $ — Non-current 42,841 138,690 — $ 138,690 $ 225,454 $ — |
Schedule of maturity analysis of the undiscounted finance lease receivables | The following is a detailed maturity analysis of the undiscounted finance lease receivables as at December 31, 2020: Total Less than 1 year $ 105,404 1-2 years 43,918 Total undiscounted finance lease receivables $ 149,322 |
INVENTORY AND RESEARCH AND DE_2
INVENTORY AND RESEARCH AND DEVELOPMENT SUPPLIES (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
INVENTORY AND RESEARCH AND DEVELOPMENT SUPPLIES | |
Schedule of inventory and research and development supplies | December 31, December 31, December 31, 2020 2019 2018 Raw materials $ 694,043 $ 500,263 $ 301,693 Work in progress — — 2,435 Finished goods 145,429 118,387 14,007 $ 839,472 $ 618,650 $ 318,135 Research and development supplies $ 167,378 $ 671,845 $ 1,274,653 |
PREPAID EXPENSES AND OTHER AS_2
PREPAID EXPENSES AND OTHER ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
PREPAID EXPENSES AND OTHER ASSETS | |
Schedule of prepaid expenses and other assets | December 31, December 31, December 31, 2020 2019 2018 Prepaid insurance 367,969 269,262 190,849 Deposits on rental agreements 128,680 119,660 276,500 Retainers for professional services 23,000 23,000 5,593 Other prepaid expenses and other assets 185,822 218,120 118,294 $ 705,471 $ 630,042 $ 591,236 |
RESTRICTED CASH (Tables)
RESTRICTED CASH (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
RESTRICTED CASH | |
Schedule of restricted cash | December 31, December 31, December 31, 2020 2019 2018 Restricted cash $ 470,460 $ 462,874 $ 439,736 |
RIGHT OF USE ASSET (Tables)
RIGHT OF USE ASSET (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
RIGHT OF USE ASSET | |
Summary of right of use assets | COST Total Balance at January 1, 2019 on adoption of IFRS 16 $ 1,407,704 Impairment of right-of-use asset (231,773) Impairment reversal 156,366 Sublease (274,965) Balance as at December 31, 2019 $ 1,057,333 Addition and lease modification 478,281 Balance as at December 31, 2020 $ 1,535,614 ACCUMULATED DEPRECIATION Balance at January 1, 2019 on adoption of IFRS 16 — Depreciation for the year 336,860 Balance at December 31, 2019 $ 336,860 Depreciation for the year 368,203 Balance as at December 31, 2020 $ 705,063 NET BOOK VALUE As at January 1, 2019, $ 1,407,704 As at December 31, 2019 $ 720,473 As at December 31, 2020 $ 830,551 |
PROPERTY AND EQUIPMENT (Tables)
PROPERTY AND EQUIPMENT (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
PROPERTY AND EQUIPMENT | |
Schedule of details of property and equipment | Production & Leasehold development Computer Computer Office Land Building improvements equipment hardware software equipment Total COST Balance as at January 1, 2018 $ 249,493 $ 438,471 $ 169,938 $ 1,649,728 $ 543,922 $ 612,273 $ 316,085 $ 3,979,910 Additions during the year — — — 149,583 — 40,799 — 190,382 Disposals during the year (249,493) (438,471) — (310,353) — — — (998,317) Balance as at December 31, 2018 $ — $ — $ 169,938 $ 1,488,958 $ 543,922 $ 653,072 $ 316,085 $ 3,171,975 Additions during the year — — — 203,169 — 40,332 — 243,501 Disposals during the year — — — — — — — — Balance at December 31, 2019 $ — $ — $ 169,938 $ 1,692,127 $ 543,922 $ 693,404 $ 316,085 $ 3,415,476 Additions during the year — — — 202,329 106,149 33,289 — 341,767 Disposals during the year — — — (88,285) — — — (88,285) Balance as at December 31, 2020 $ — $ — $ 169,938 $ 1,806,171 $ 650,071 $ 726,693 $ 316,085 $ 3,668,958 ACCUMULATED DEPRECIATION Balance at January 1, 2018 $ — $ 53,564 $ 66,416 $ 998,944 $ 386,095 $ 572,017 $ 217,694 $ 2,294,730 Depreciation for the year — 7,698 23,439 211,908 47,348 74,055 19,678 384,126 Disposals during the year — (61,262) — (259,247) — — — (320,509) Balance at December 31, 2018 $ — $ — $ 89,855 $ 951,605 $ 433,443 $ 646,072 $ 237,372 $ 2,358,347 Depreciation for the year — — 18,132 184,429 33,144 40,371 15,744 291,820 Disposals during the year — — — (2,664) — — — (2,664) Balance at December 31, 2019 $ — $ — $ 107,987 $ 1,133,370 $ 466,587 $ 686,443 $ 253,116 $ 2,647,503 Depreciation for the year — — 25,636 184,973 33,815 37,477 12,593 294,494 Disposals during the year — — — (76,319) — — — (76,319) Balance at December 31, 2020 $ — $ — $ 133,623 $ 1,242,024 $ 500,402 $ 723,920 $ 265,709 $ 2,865,678 CARRYING AMOUNTS As at December 31, 2018 $ — $ — $ 80,083 $ 537,353 $ 110,479 $ 7,000 $ 78,713 $ 813,628 As at December 31, 2019 $ — $ — $ 61,951 $ 558,757 $ 77,335 $ 6,961 $ 62,969 $ 767,973 As at December 31, 2020 $ — $ — $ 36,315 $ 564,147 $ 149,669 $ 2,773 $ 50,376 $ 803,280 |
ACCOUNTS PAYABLE AND ACCRUED _2
ACCOUNTS PAYABLE AND ACCRUED LIABILITIES (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
ACCOUNTS PAYABLE AND ACCRUED LIABILITIES | |
Schedule of accounts payable and accrued liabilities | December 31, December 31, December 31, 2020 2019 2018 Current accounts payable and accrued liabilities Trade payables $ 3,705,626 $ 3,993,203 $ 898,711 Accrued liabilities 1,421,433 2,163,886 1,117,673 Accrued vacation 335,681 211,168 142,730 Accrued employee termination expenses — 13,887 373,171 Other accounts payable 535,124 320,306 190,496 Share appreciation rights liability 59,036 — — Collaboration, license, and settlement agreements provision 1,186,600 1,092,006 1,887,779 Total current accounts payable and accrued liabilities $ 7,243,500 $ 7,794,456 $ 4,610,560 Non-current accrued liabilities Non-current collaboration, license and settlement agreements provision — 1,186,601 2,241,979 $ — $ 1,186,601 $ 2,241,979 Total accounts payable and accrued liabilities $ 7,243,500 $ 8,981,057 $ 6,852,539 |
LEASE LIABILITY (Tables)
LEASE LIABILITY (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
LEASE LIABILITY | |
Summary of lease liability | Total Balance at January 1, 2019 $ 1,289,106 Interest expense 128,911 Lease payments (513,138) Balance at December 31, 2019 $ 904,879 Lease Liability, current $ 436,352 Lease Liability, non-current $ 468,527 Addition and lease modification 478,280 Interest expense 106,843 Lease payments (550,211) Balance at December 31, 2020 $ 939,791 Lease Liability, current $ 342,910 Lease Liability, non-current $ 596,881 The maturity analysis of the undiscounted contractual balances of the lease liabilities is as follows: In one year or less $ 484,782 In more than one year, but not more than five years 664,848 $ 1,149,630 |
DERIVATIVE WARRANT LIABILITY _2
DERIVATIVE WARRANT LIABILITY FROM FINANCING AND CONVERTIBLE NOTE (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure of detailed information about financial instruments [line items] | |
Schedule of key assumptions used in binomial tree model to estimate fair value | March 31, December 31, December 31, Valuation Date 2020 2019 2018 Price of Common Shares $ 1.46 $ 5.41 $ 6.03 Dividend Yield 0 % 0 % 0 % Historical volatility of Common Shares 100.84 % 129.54 % 141.96 % Historical volatility of index 36.07 % 11.65 % 15.37 % Volatility input 75.16 % 70.59 % 78.67 % Risk-free rate 1.11 % 1.79 % 2.52 % Credit spread 29.58 % 23.00 % 24.51 % Valuation Date December 31, December 31, May 16, Price of Common Shares $ 0.95 $ 5.41 $ 49.46 Dividend Yield 0 % 0 % 0 % Historical volatility of Common Shares 103.42 % 124.77 % 142.38 % Historical volatility of index 23.11 % 13.76 % 15.66 % Volatility input 63.26 % 69.26 % 79.02 % Risk-free rate 0.19 % 1.65 % 2.13 % Credit spread 18.18 % 27.15 % 19.64 % December 31, May 28, Valuation Date 2020 2020 Price of Common Shares $ 0.95 $ 2.86 Dividend Yield — % — % Historical volatility of Common Shares 116.72 % 127.50 % Historical volatility of index 20.74 % 18.91 % Volatility input 68.73 % 73.21 % Risk-free rate 0.26 % 0.32 % Credit spread 14.42 % 19.35 % |
Convertible Notes | |
Disclosure of detailed information about financial instruments [line items] | |
Schedule of carrying amounts of derivative financial liabilities and convertible notes | The carrying amounts for the 2017 Notes, 2019 Notes, and 2020 Notes are as follows: 2017 Convertible Notes Balance, convertible notes December 31, 2018 14,617,336 Less: Exercise of 11,197,000 convertible notes (13,095,938) Fair value adjustment 3,878,791 Balance, convertible notes December 31, 2019 $ 5,400,189 Fair value adjustment, (unrealized) loss due to changes in credit spread (17,122) Fair value adjustment, March 31, 2020 unrealized gain (1,599,573) Balance, convertible notes March 31, 2020 $ 3,783,494 Less: Exercise of 1,016,000 convertible notes (1,293,093) Fair value adjustment Settlement Warrants (807,977) Fair value adjustment at maturity realized loss 1,214,576 Re-payment of convertible note (2,897,000) Balance, convertible notes December 31, 2020 $ — 2017 Convertible Notes, current $ — 2017 Convertible Notes, non-current $ — 2019 Convertible Notes Fair value, May 16, 2019 9,775,000 Fair value adjustment, (509,520) Balance, convertible notes December 31, 2019 $ 9,265,480 Fair value adjustment, March 31, 2020 unrealized gain (1,533,410) Fair value adjustment, March 31, 2020 realized loss 143,750 Fair value adjustment, (unrealized) loss due to changes in credit spread (1,421,063) Balance, convertible notes March 31, 2020 $ 6,454,757 Fair value adjustment, June 30, 2020 unrealized loss 1,370,016 Fair value adjustment, June 30, 2020 realized gain (413,681) Fair value adjustment, (unrealized) loss due to changes in credit spread 2,303,406 Balance, convertible notes June 30, 2020 $ 9,714,498 Re-payment of convertible note July 23 conversion (3,613,341) Re-payment of convertible note August 17 conversion (1,263,884) Fair value adjustment, Repayment warrants (161,720) Fair value adjustment, September 30, 2020 unrealized loss 136,921 Fair value adjustment, September 30, 2020 realized loss 1,034,861 Fair value adjustment, (unrealized) loss due to changes in credit spread 110,229 Balance, convertible notes September 30, 2020 $ 5,957,564 Fair value adjustment, December 31, 2020 unrealized loss 66,203 Fair value adjustment, December 31, 2020 realized gain (128,776) Fair value adjustment, (unrealized) loss due to changes in credit spread 300,366 Balance, convertible notes December 31, 2020 $ 6,195,357 2019 Convertible Notes, current $ 38,633 2019 Convertible Notes, non-current $ 6,156,724 2020 Convertible Notes Fair value, May 26, 2020 6,449,634 Add: Deferred loss (3,511,670) Amortization of deferred loss 79,373 Fair value adjustment, June 30, 2020 unrealized gain (438,810) Fair value adjustment, June 30, 2020 realized loss 34,985 Fair value adjustment, (unrealized) loss due to changes in credit spread 5,736 Balance, convertible notes June 30, 2020 $ 2,619,248 Add: Amortization of deferred loss 216,282 Fair value adjustment, September 30, 2020 unrealized gain (186,531) Fair value adjustment, September 30, 2020 realized loss 99,712 Fair value adjustment, (unrealized) loss due to changes in credit spread 48,015 Balance, convertible note September 30, 2020 $ 2,796,726 Add: Amortization of deferred loss 221,283 Fair value adjustment, December 31, 2020 unrealized gain (450,279) Fair value adjustment, December 31, 2020 realized gain (97,172) Fair value adjustment, (unrealized) loss due to changes in credit spread 145,644 Balance, convertible note December 31, 2020 $ 2,616,202 2020 Convertible Notes, current $ 37,525 2020 Convertible Notes, non-current $ 2,578,677 Derivative liability – January 2020 warrants 11,347 Derivative liability – May 2020 warrants (256,639) Derivative liability – June 2020 warrants (49,176) Derivative liability – August 2020 warrants (2,195,092) Derivative liability – December 2020 warrants 1,184,291 Derivative liability – Repayment warrants 9,448 Derivative liability – Settlement warrants 201,673 Balance, 2020 Convertible notes and warrants and derivative liabilities $ 1,522,054 2020 Convertible notes and warrants and derivative liabilities, current $ 37,525 2020 Convertible notes and warrants and derivative liabilities , non-current $ 1,484,529 |
Derivative warrant liability | |
Disclosure of detailed information about financial instruments [line items] | |
Schedule of carrying amounts of derivative financial liabilities and convertible notes | The carrying amounts for the 2017 derivative warrant liability from financing are as follows: Series A Units Series B Units Series E Total Fair value adjustment, December 31, 2018 1,190,630 (8,411,543) (4,512,848) (11,733,761) Balance, Derivative financial liability December 31, 2018 $ 35,693 $ 82,523 $ 72,087 $ 190,303 Less: Exercise of 822,192 Series C Warrants (5,638) — — (5,638) Fair value adjustment, March 31, 2019 (5,575) (5,253) (6,677) (17,505) Cancellation of 35,950,340 Series A Warrants (24,480) (77,270) — (101,750) Cancellation of 22,431,506 Series E Warrants — — (65,410) (65,410) Balance, derivative warrant liability from financing as at December 31, 2019 and 2020 $ — $ — $ — $ — The carrying amounts for the 2020 derivative warrant liability from financing are as follows: 2020 January Warrants Inception of the January 2020 Warrants (see Note 18(e)) 6,145,620 Add: Deferred loss (223,791) Less: January 31 exercise 1,241,490 pre-funded warrants (3,885,746) Fair value adjustment, January 31 realized gain (422,102) Derecognition of deferred loss 93,813 Amortization of deferred loss 30,240 Less: Fair value adjustment, March 31, 2020 unrealized gain (1,715,390) Balance, March 31, 2020 $ 22,644 Less: May 28 exercise 1,185,000 Series A; 991,940 Series B (969,133) FV revaluation at May 28 realized loss 957,847 Derecognition of deferred loss 76,473 Amortization of deferred loss 22,488 Less: Fair value adjustment, June 30, 2020 unrealized gain (45,897) Balance, June 30, 2020 $ 64,422 Amortization of deferred loss 5,168 Less: Fair value adjustment, September 31, 2020 unrealized gain (21,734) Balance, September 30, 2020 $ 47,856 Amortization of deferred loss 5,168 Less: Fair value adjustment, December 31, 2020 unrealized gain (41,677) Balance, December 31, 2020 $ 11,347 Number of warrants outstanding as of December 31, 2020 250,000 2020 May Warrants Inception of the May 2020 Warrants (see Note 18(e)) 4,526,732 Add: Deferred loss (2,464,696) Amortization of deferred loss 55,709 Less: Fair value adjustment, June 30, 2020 unrealized gain (1,069,013) Balance, June 30, 2020 $ 1,048,732 Less: July 23 exercise 1,424,049 warrants (2,082,598) August 17 exercise of 501,000 warrants (565,221) Derecognition of deferred loss 1,843,332 Amortization of deferred loss 35,644 Less: Fair value adjustment, September 30, 2020 unrealized gain (106,350) Balance, September 30, 2020 $ 173,539 Amortization of deferred loss 35,644 Less: Fair value adjustment, December 31, 2020 unrealized gain (465,822) Balance, December 31, 2020 $ (256,639) Number of warrants outstanding as of December 31, 2020 648,910 2020 June Warrants Inception of the June 2020 Warrants (see Note 18(e)) 2,404,957 Add: Deferred loss (448,877) Amortization of deferred loss 8,609 Less: Fair value adjustment, June 30, 2020 unrealized gain (164,711) Balance, June 30, 2020 $ 1,799,978 Amortization of deferred loss 56,571 Less: Fair value adjustment, September 30, 2020 unrealized gain (489,496) Balance, September 30, 2020 $ 1,367,053 Amortization of deferred loss 56,571 Less: Fair value adjustment, December 31, 2020 unrealized gain (1,472,800) Balance, December 31, 2020 $ (49,176) Number of warrants outstanding as of December 31, 2020 2,912,277 2020 August Warrants Inception of the August 2020 Warrants (see Note 18(e)) 3,511,115 Add: Deferred loss (3,167,758) Amortization of deferred loss 212,630 Less: Fair value adjustment, September 30, 2020 unrealized gain (1,315,978) Balance, September 30, 2020 $ (759,991) Amortization of deferred loss 399,224 Less: Fair value adjustment, December 31, 2020 unrealized gain (1,834,325) Balance, December 31, 2020 $ (2,195,092) Number of warrants outstanding as of December 31, 2020 3,399,579 2020 December Warrants Inception of the December 2020 Warrants (see Note 18(e)) 2,051,657 Add: Deferred loss (1,278,414) Amortization of deferred loss 40,279 Less: Fair value adjustment, December 31, 2020 unrealized gain 370,769 Balance, December 31, 2020 $ 1,184,291 Number of warrants outstanding as of December 31, 2020 6,230,803 2020 Repayment Warrants Inception of the 2020 Repayment Warrants (see Note 18(e)) Balance, September 30, 2020 $ 161,720 Less: Fair value adjustment, December 31, 2020 unrealized gain (152,272) Balance, December 31, 2020 $ 9,448 Number of warrants outstanding as of December 31, 2020 650,296 2020 Settlement Warrants Inception of the 2020 Settlement Warrants (see Note 18(e)) 807,977 Less: Fair value adjustment, June 30, 2020 unrealized gain (232,042) Balance, June 30, 2020 $ 575,935 Less: Fair value adjustment, September 30, 2020 unrealized gain (58,645) Balance, September 30, 2020 $ 517,290 Less: Fair value adjustment, December 31, 2020 unrealized gain (315,617) Balance, December 31, 2020 $ 201,673 Number of warrants outstanding as of December 31, 2020 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
INCOME TAXES | |
Schedule of reconciliation of reported tax expense | For the years ended December 31, 2020 2019 2018 Loss before income taxes $ (29,219,098) $ (35,102,222) $ (107,876,382) Statutory tax rate 27.00 % 27.00 % 27.00 % Recovery of income taxes based on the combined Canadian federal and provincial statutory rates (7,889,156) (9,477,600) (29,126,623) Share-based remuneration 1,324,569 861,248 1,073,142 Unrealized gain on derivatives (2,320,685) — — Effect of historical adjustments — — (16,036) Other permanent differences (250,111) 190,096 20,930,238 Unrecognized deferred tax benefits 8,061,195 8,464,437 7,183,316 Difference in tax rates between foreign jurisdictions and Canada 550,131 (9,389) 63,056 Income tax (recovery)/ expense $ (524,057) $ 28,793 $ 107,093 |
Schedule of components of income tax expense | For the years ended December 31, 2020 2019 2018 Current tax $ (524,057) $ 28,793 $ 107,093 Deferred tax — — — Income tax expense $ (524,057) $ 28,793 $ 107,093 |
Schedule of the unrecognized deferred tax assets | For the years ended December 31, 2020 2019 2018 Investment tax credits $ 464,888 $ 464,888 $ 528,641 Capital assets 4,287 7,392 9,382 Lease liability 224,249 194,528 — Recognized deferred tax assets $ 693,424 $ 666,808 $ 538,023 Set off of tax (693,424) (666,808) (538,023) Investment tax credits $ (464,888) $ (464,888) $ (528,641) Capital assets (4,287) (7,392) (9,382) Right of use asset (224,249) (194,528) — Recognized deferred tax liabilities $ (693,424) $ (666,808) $ (538,023) Set off of tax $ 693,424 $ 666,808 $ 538,023 |
Schedule of unrecognized deductible temporary differences and unused tax losses for which no deferred tax asst is recognized | For the years ended December 31, 2020 2019 2018 Deductible temporary differences $ 10,616,227 $ 7,843,252 $ 5,247,143 Unused tax credits 2,416,825 2,416,825 3,054,186 Tax losses 318,477,703 273,792,687 245,013,646 $ 331,510,755 $ 284,052,764 $ 253,314,975 |
Schedule of Unused tax losses for the Company and their expiry dates | Expiration Date Amount 2023 6,038,836 2024 6,906,649 2025 18,105,259 2026 32,396,580 2027 135,245,992 2028 33,339,203 2029 15,799,773 2030 21,718,728 US losses $ 12,885,335 Israel losses $ 36,041,348 $ 318,477,703 |
SHARE CAPITAL (Tables)
SHARE CAPITAL (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Statement | |
Schedule of shares capital issued and outstanding | Common Shares Contributed Number Amount Surplus Balance, January 1, 2018 102,916 $ 171,803,816 $ 23,056,846 Common Shares issued from exercise of Series B Warrants (i) 1,315,281 54,119,300 — Common Shares issued from exercise of Series C Warrants (ii) 9,452 15,854,206 — Common Shares issued from exercise of Series D Warrants (iii) 1,699 1,021,183 — Common Shares issued from exercise of Series F Warrants (iv) 295,740 42,990,737 — Common Shares issued from exercise of 2017 Notes (v) 1,076,583 18,582,374 — Common Shares issued for cash on exercise of options 49 88,917 (88,917) Share-based payments — — 3,292,877 Balance, December 31, 2018 2,801,720 $ 304,460,533 $ 26,260,806 Common Shares issued from public offerings (vi) 2,222,222 7,802,417 315,611 Common Shares issued from private placement (vii) 334,951 1,664,662 — Common Shares issued from exercise Series B Warrants (viii) 223,304 16,931 — Common Shares issued from exercise of Series C Warrants (ix) 822 1,186,027 — Common Shares issued from exercise of 2017 Notes (x) 3,074,136 13,095,938 — Common Shares issued from exchange of Series A and Series E Warrants (xi) 49,624 234,173 — Share-based payments — — 3,189,808 Balance, December 31, 2019 8,706,779 $ 328,460,681 $ 29,766,225 Common Shares issued from public offerings Series A (xii) 1,185,000 4,111,950 — Common Shares issued from exercise of Series B Pre-funded warrants (xiii) 1,241,490 3,885,746 — Transaction costs for both Series A and Series B — (462,880) — Broker warrants (See Note 17 (f)) — (82,597) 82,597 Common Shares issued from Warrant conversion (xiv) 672,937 969,133 — Common Shares issued from conversion of 2017 Notes (xv) 500,014 1,293,093 — Common Shares issued from public offering (xvi) 3,883,036 9,591,099 — Transaction costs for public offering — (1,215,274) — Broker warrants (See Note 17 (f)) — (162,467) 162,467 Common Shares issued from public offering (xvii) 4,532,772 12,238,484 — Transaction costs for public offering — (1,057,302) — Broker warrants (See Note 17 (f)) — (242,989) 242,989 Common Shares issued from Warrant conversion (xviii) 1,925,049 7,718,346 — Common Shares issued from public offerings Series A (xix) 6,230,803 5,333,567 — Transaction costs for public offerings Series A — (659,410) — Broker warrants (See Note 17 (f)) — (96,114) 96,114 Common Shares issued from exercise of restricted share units 50,986 151,938 (151,938) Common Shares issued from exercise of stock options 50 378 (174) Share-based payments — — 4,846,776 Balance, December 31, 2020 28,928,916 $ 369,775,383 $ 35,045,056 (i) During the year ended December 31, 2018, 1,315,281 Common Shares were issued on the exercise of 35,128,148 Series B Warrants. The related derivative liability of $32,988,998 (see Note 18) was derecognized at the dates of exercise. (ii) During the year ended December 31, 2018, of the 10,273,972 Series C Warrants initially granted, 9,451,780 were exercised for 9,452 Common Shares, 9,451,780 Series A Warrants and 9,451,780 Series B Warrants and cash proceeds of $13,799,659. The related derivative financial liability of $4,459,249 (see Note 18) was derecognized at the dates of exercise. (iii) During the year ended December 31, 2018, 1,699 Common Shares were issued for the exercise of 1,698,841 of the Series D Warrants that were issued as part of the Series B Units for cash proceeds of $16,988. The related derivative financial liability of $1,004,195 was derecognized (see Note 18) at the date of exercise. (iv) During the year ended December 31, 2018, 295,740 Common Shares were issued on the exercise of the 22,431,506 Series F Warrants. The related derivative financial liability of $29,085,125 (see Note 18) was derecognized at the dates of exercise. (v) During the year ended December 31, 2018, 1,076,583 Common Shares were issued on the conversion of $17,640,000 of aggregate principal amount of 2017 Notes. The $20,555,832 aggregate principal amount of 2017 Notes (see Note 18) was derecognized at the date of exercise. (vi) During the year ended December 31, 2019, 2,222,222 Common Shares were issued for gross proceeds of $10,000,000 less $1,270,000 in underwriting commission, a $315,611 fair value charge for 144,444 Broker Warrants issued (see Note 18(e)) and $611,972 in other share issuance costs. (vii) On May 16, 2019, the Company completed a private placement of (i) 15% original issue discount convertible notes with a face value of $11.5 million, for gross proceeds to the Company of $9,775,000, and (ii) 334,951 Common Shares of the Company at a price of $5.15 per Common Share, for net proceeds of $1,664,662. (viii) During the year ended December 31, 2019, 223,304 Common Shares were issued on the exercise of 822,192 Series B Warrants. The related derivative liability of $16,931(see Note 16) was derecognized at the dates of exercise. (ix) During the year ended December 31, 2019, the remaining 822,192 Series C Warrants were exercised for 822 Common Shares, 822,192 Series A Warrants and 822,192 Series B Warrants and net cash proceeds of $1,186,027. The related derivative financial liability of $5,638 (see Note 16) was derecognized at the dates of exercise. (x) During the year ended December 31, 2019, 3,074,136 Common Shares were issued on the conversion of $11,197,000 of aggregate principal amount of 2017 Notes. The $13,095,938 aggregate principal amount of 2017 Notes (see Note 16) was derecognized at the date of exercise. (xi) During the year ended December 31, 2019, the Company entered into exchange agreements with the holders of the remaining Series A Warrants and Series E Warrants to issue 49,624 Common Shares for the surrender and cancellation of all 35,950,340 Series A Warrants and all 22,431,506 Series E Warrants outstanding on the basis of 0.00085 of a Common Share for each Warrant. (xii) On January 6, 2020, the Company completed a registered direct offering of an aggregate of 1,185,000 Series A Units and 1,241,490 Series B units at a price of $4.1351 per Series A Unit and $4.135 per Series B Unit for aggregate gross proceeds to the Company of approximately $10,000,000, less $462,880 in underwriting commission, a $82,597 fair value charge for 157,721 Broker Warrants issued (see Note 18(g)) and $185,883 in other share issuance costs. (xiii) During the three months ended March 31, 2020, 1,241,490 Common Shares were issued on the conversion of Series B Pre-funded warrants from the January 6, 2020 registered direct offering (xiv) On May 28, 2020, the Company issued an aggregate of 672,937 Exchange Shares for the surrender and cancellation of 2,176,490 January 2020 warrants outstanding on the basis of approximately 0.3092 of an Exchange Share for each warrant. (xv) On May 26, 2020, 500,014 Common Shares were issued on the conversion of $1,016,000 of aggregate principal amount of 2017 Notes. The fair value of 2017 Notes related to this conversion (see Note 16) was derecognized at the date of exercise. (xvi) On June 16, 2020, the Company completed a registered direct offering of an aggregate 3,883,036 units (the "Units") at a price of $2.973 per unit for aggregate gross proceeds to the Company of approximately $11,500,000 less $1,215,274 in underwriting commission, a $162,467 fair value charge for Compensation Warrants "2020 Compensation Warrants" (see Note 18 (g)), and $278,482 in other share issuance costs. (xvii) On August 12, 2020 the Company completed a registered direct offering of an aggregate 4,532,772 Common Shares at a price of $2.775 per Common Share for aggregate gross proceeds to the Company for approximately $12,600,000 less $1,057,302 in underwriting commission, a $242,989 fair value charge for Compensation Warrants "2020 Compensation Warrants" (see Note 18 (g)), and $109,918 in other share issuance costs. (xviii) On July 23, 2020 and August 12,2020, 1,925,049 Commons shares were issued on the conversion of May 2020 warrants. Using the exercise proceeds of $4,877,225, the Company has prepaid a portion of the 2019 Convertible Note. (xix) On December 8, 2020 the Company completed a registered direct offering of an aggregate 6,230,803 Common Shares at a price of $0.9801 per Common Share for aggregate gross proceeds to the Company for approximately $6,100,000 less $659,410 in underwriting commission, a $96,114 fair value charge for Compensation Warrants "2020 Compensation Warrants" (see Note 18 (g)), and $200,386 in other share issuance costs. |
Schedule of warrants issued and exercised | The following table lists the number of warrants issued on November 17, 2017 as well as the number issued, exercised, and exchanged since then and the remaining warrants outstanding at December 31, 2020. As at November 17, As at December 31, Warrants 2017 Issued Exercised Exchanged 2019 and 2020 Series A 25,676,368 10,273,972 — (35,950,340) — Series B 25,676,368 10,273,972 (35,950,340) — — Series C 10,273,972 — (10,273,972) — — Series D 3,573,830 — (3,573,830) — — Series E 22,431,506 — — (22,431,506) — Series F 22,431,506 — (22,431,506) — — |
Summary of stock option activity | Weighted Average average remaining Number of exercise contractual life options price (years) Options outstanding, January 1, 2018 5,707 $ 3,849.00 Granted 366,053 Exercised (49) Forfeited (1,178) Expired (807) 1,813.70 Options outstanding, December 31, 2018 369,726 $ 76.78 7.88 Options exercisable, December 31, 2018 146,263 $ 127.04 7.62 Granted 697,150 4.27 Exercised — — Forfeited (13,344) 58.64 Expired (1,867) 4,997.06 Options outstanding, December 31, 2019 1,051,665 $ 20.63 7.09 Options exercisable, December 31, 2019 398,596 $ 35.69 6.97 Granted 2,495,100 2.48 Exercised (50) 4.10 Forfeited (468,238) 23.10 Expired (1,329) 3,498.28 Options outstanding, December 31, 2020 3,077,148 $ 4.10 Options exercisable, December 31, 2020 1,081,760 $ 6.01 6.93 |
Summary of options outstanding by exercise price | The following table lists the options outstanding as at December 31, 2020 by exercise price: Weighted average Weighted average Options remaining term Options remaining term Exercise price outstanding (yrs) exercisable (yrs) $2.11 486,875 7.72 138,125 $2.17 695,000 7.76 173,750 $2.27 1,500 7.61 1,500 $2.42 640,000 7.47 176,032 $3.35 493,766 7.05 133,495 $4.10 481,150 6.23 251,550 $4.11 - $3,878.39 278,857 6.07 207,308 3,077,148 1,081,760 The following table lists the options outstanding as at December 31, 2019 by exercise price: Weighted average Weighted average Options remaining term Options remaining term Exercise price outstanding (yrs) exercisable (yrs) $4.10 561,050 7.23 140,450 7.23 $5.00 130,950 7.41 32,738 7.41 $8.80 88,800 6.92 59,242 6.92 $27.20 263,250 6.75 162,268 6.75 $27.30 - $9,276.86 7,615 4.71 3,898 3.69 1,051,665 398,596 The following table lists the options outstanding as at December 31, 2018 by exercise price: Weighted average Weighted average Options remaining term Options remaining term Exercise price outstanding (yrs) exercisable (yrs) $8.80 89,900 7.92 29,976 7.92 $27.20 270,000 7.75 112,566 7.75 $60.00 1,055 7.25 — — $60.01 - $8,917.93 8,771 4.39 3,721 1.48 369,726 146,263 |
Stock options | |
Statement | |
Estimate of fair value of options weighted average assumptions | 2020 2019 2018 Weighted average fair value $ 1.99 $ 3.60 $ 16.40 Weighted average exercise price $ 2.48 $ 4.30 $ 30.30 Weighted average share price at grant $ 2.48 $ 4.30 $ 30.30 Dividend yield nil nil nil Volatility 124 % 141 % 72 % Risk-free interest rate 0.94 % 1.51 % 2.24 % Expected life 4 years 4 years 4 years Forfeiture rate 7.00 % 7.00 % 7.00 % |
Restricted Share Unit Plan | |
Statement | |
Summary of transactions | Weighted Average Grant Date Number of Fair Value RSUs Per Share Outstanding, December 31, 2018 — — Granted 152,956 $ Vested — — Outstanding, December 31, 2019 152,956 $ 2.98 Granted 706,044 $ 2.72 Vested/Exercised (50,986) $ 0.85 Cancelled/Forfeited (30,000) $ 2.74 Outstanding, December 31, 2020 778,014 $ 2.76 |
Share Appreciation Rights | |
Statement | |
Summary of transactions | Weighted Average Number of Grant Date Fair SARs Value Per Share Outstanding, December 31, 2019 and 2018 — — Granted 1,811,768 $ Vested — — Outstanding, December 31, 2020 1,811,768 $ |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
SEGMENT INFORMATION | |
Schedule of Company's revenue in geographic locations | For the years ended December 31, 2020 2019 2018 REVENUE Europe $ 1,810,362 $ 1,863,032 $ 1,600,633 Rest of the World 147,000 229,000 148,500 $ 1,957,362 $ 2,092,032 $ 1,749,133 |
EMPLOYEE BENEFITS EXPENSE (Tabl
EMPLOYEE BENEFITS EXPENSE (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
EMPLOYEE BENEFITS EXPENSE | |
Schedule of employee benefits expense | For the years ended December 31, 2020 2019 2018 Salaries and wages $ 10,536,409 $ 9,583,936 $ 8,477,335 Pension plan and employment insurance 506,025 458,276 418,303 Contribution to defined contribution pension plan 198,342 182,449 170,358 Health benefits 765,948 651,269 476,217 Cash-based employee expenses $ 12,006,724 $ 10,875,930 $ 9,542,213 Employee termination expenses — 26,050 761,354 Share-based payments 4,905,812 3,189,808 3,292,877 Total employee expenses $ 16,912,536 $ 14,091,788 $ 13,596,444 |
DEPRECIATION, SHARE-BASED PAY_2
DEPRECIATION, SHARE-BASED PAYMENTS, EMPLOYEE AND OTHER EXPENSES (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
DEPRECIATION, SHARE-BASED PAYMENTS, EMPLOYEE AND OTHER EXPENSES | |
Schedule of depreciation, share-based payments, employee and other expenses | For the years ended December 31, 2020 2019 2018 EXPENSES Selling expenses Share-based payment $ 320,886 $ 188,930 $ 170,416 Cash-based employee expenses 891,784 526,769 352,837 Other expenses 984,133 930,286 829,912 $ 2,196,803 $ 1,645,985 $ 1,353,165 General and administrative expenses Depreciation 280,949 182,202 60,206 Share-based payments 2,820,369 1,748,660 2,147,832 Cash-based employee expenses 3,149,313 2,725,814 2,498,005 Litigation expenses 284,729 81,171 540,125 Employee termination expenses — 26,050 761,354 Accretion on collaboration, license and settlement agreements provision 308,938 693,047 5,129,758 Legal costs from financing activities 3,617,485 1,089,245 1,608,260 Other expenses 3,619,370 3,467,543 3,693,396 $ 14,081,153 $ 10,013,732 $ 16,438,936 Product development and clinical trials expenses Depreciation 487,152 459,419 323,920 Share-based payments 1,764,557 1,252,218 974,629 Cash-based employee expenses 7,965,627 7,623,347 6,691,371 Other expenses 10,184,259 10,685,975 8,011,544 20,401,595 20,020,959 16,001,464 TOTAL EXPENSES $ 36,679,551 $ 31,680,676 $ 33,793,565 Depreciation per Statements of Cash Flows $ 768,101 $ 641,621 $ 384,126 Share-based payments per Statements of Cash Flows $ 4,905,812 $ 3,189,808 $ 3,292,877 Cash-based employee expenses (see Note 20) $ 12,006,724 $ 10,875,930 $ 9,542,213 |
LOSS PER SHARE (Tables)
LOSS PER SHARE (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
LOSS PER SHARE | |
Schedule of loss per share | For the years ended December 31, 2020 2019 2018 Weighted average number of Common Shares 16,667,810 6,511,672 1,416,011 Loss for the year $ (28,695,041) $ (35,131,015) $ (107,983,475) Basic and diluted loss per share $ (1.72) $ (5.40) $ (76.26) |
RELATED PARTY TRANSACTIONS (Tab
RELATED PARTY TRANSACTIONS (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
RELATED PARTY TRANSACTIONS | |
Schedule of key management remuneration | For the years ended December 31, 2020 2019 2018 Short-term employee benefits Employee salaries and bonuses $ 2,348,709 $ 2,235,926 $ 2,112,605 Directors fees 265,833 245,000 270,000 Social security and medical care costs 80,949 77,284 63,529 2,695,491 2,558,210 2,446,134 Post-employment benefits Contributions to defined contribution pension plan 36,114 32,435 34,162 Employee termination expense — — 296,592 Share-based payments 1,726,690 1,555,857 2,270,023 Total key management remuneration $ 4,458,295 $ 4,146,502 $ 5,046,911 |
INCORPORATION AND GOING CONCE_2
INCORPORATION AND GOING CONCERN (Details) | Feb. 12, 2021USD ($) | Dec. 14, 2020$ / shares | Dec. 10, 2020USD ($) | Jun. 25, 2020 | Feb. 12, 2020USD ($) | Aug. 22, 2019USD ($) | Sep. 18, 2018 | Dec. 31, 2020USD ($) | Apr. 30, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) |
Going concern and uncertainty | ||||||||||||
Cash on hand | $ 12,935,860 | $ 5,292,833 | $ 9,242,809 | $ 17,507,157 | ||||||||
Aggregate gross proceeds from registered direct offering | $ 12,900,000 | |||||||||||
Conversion of stock split ratio | 0.01 | |||||||||||
Nasdaq notification for non-compliance | ||||||||||||
Going concern and uncertainty | ||||||||||||
Minimum bid price requirement | $ / shares | $ 1 | |||||||||||
Grace period to regain compliance | 180 days | 180 days | 180 days | |||||||||
Minimum market value requirement | $ 35,000,000 | $ 35,000,000 | $ 35,000,000 | |||||||||
Number of consecutive business days | 10 days | |||||||||||
February 2021 offering | ||||||||||||
Going concern and uncertainty | ||||||||||||
Gross proceeds from issue of units | $ 72,000,000 | $ 72,000,000 | ||||||||||
Maximum number of years proceeds from financing offerings meets the requirements of operations | 3 years | 3 years |
SIGNIFICANT ACCOUNTING POLICI_4
SIGNIFICANT ACCOUNTING POLICIES - Property and equipment (Details) | 12 Months Ended |
Dec. 31, 2020 | |
Building | |
PROPERTY, PLANT AND EQUIPMENT | |
Depreciation rate, property and equipment | 4.00% |
Production & development equipment | |
PROPERTY, PLANT AND EQUIPMENT | |
Depreciation rate, property and equipment | 30.00% |
Computer hardware | |
PROPERTY, PLANT AND EQUIPMENT | |
Depreciation rate, property and equipment | 30.00% |
Computer software | |
PROPERTY, PLANT AND EQUIPMENT | |
Depreciation rate, property and equipment | 100.00% |
Office equipment | |
PROPERTY, PLANT AND EQUIPMENT | |
Depreciation rate, property and equipment | 20.00% |
SIGNIFICANT ACCOUNTING POLICI_5
SIGNIFICANT ACCOUNTING POLICIES - Revenue recognition (Details) | 12 Months Ended |
Dec. 31, 2020 | |
Revenue Abstract | |
Standard payment terms (in days) | 60 days |
SIGNIFICANT ACCOUNTING POLICI_6
SIGNIFICANT ACCOUNTING POLICIES - Operating segment (Details) | 12 Months Ended |
Dec. 31, 2020segment | |
SIGNIFICANT ACCOUNTING POLICIES | |
Number of business segments | 1 |
SIGNIFICANT ACCOUNTING POLICI_7
SIGNIFICANT ACCOUNTING POLICIES - Adoption of new standards (Details) - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 | Jan. 01, 2019 | Dec. 31, 2018 |
Reconciliation of total operating lease commitments to the lease liabilities recognized | ||||
Total lease liabilities recognized under IFRS 16 at January 1, 2019 | $ 939,791 | $ 904,879 | $ 1,289,106 | |
IFRS 16 | ||||
Reconciliation of total operating lease commitments to the lease liabilities recognized | ||||
Total operating lease commitments disclosed at December 31, 2018 | $ 1,431,188 | |||
Operating lease liabilities before discounting | 1,431,188 | |||
Discounted using incremental borrowing rate | (142,082) | |||
Operating lease liabilities | 1,289,106 | |||
Total lease liabilities recognized under IFRS 16 at January 1, 2019 | $ 1,289,106 | |||
Weighted average incremental borrowing rate applied to lease liabilities | 10.00% |
MANAGING CAPITAL (Details)
MANAGING CAPITAL (Details) - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Disclosure of contingent liabilities | ||||
2017 Derivative warrant liability | $ 190,303 | |||
2020 Convertible notes and warrants and derivative warrant liabilities | $ 1,522,054 | |||
Equity | 1,977,517 | $ (14,445,765) | (8,332,838) | $ (35,200,448) |
Capital | 9,694,928 | (219,904) | 6,284,498 | |
2017 Convertible notes | ||||
Disclosure of contingent liabilities | ||||
Convertible Note | 5,400,189 | $ 14,617,336 | ||
2019 Convertible notes | ||||
Disclosure of contingent liabilities | ||||
Convertible Note | 6,195,357 | $ 9,265,480 | ||
2020 Convertible notes | ||||
Disclosure of contingent liabilities | ||||
2020 Convertible notes and warrants and derivative warrant liabilities | $ 1,522,054 |
FINANCIAL RISK MANAGEMENT - Fin
FINANCIAL RISK MANAGEMENT - Financial assets and liabilities (Details) - USD ($) | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | May 26, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | May 16, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Nov. 17, 2017 |
Assets at amortized cost | ||||||||||
Cash and cash equivalents | $ 12,935,860 | $ 5,292,833 | $ 9,242,809 | $ 17,507,157 | ||||||
Accounts receivable | 987,057 | 715,696 | 647,143 | |||||||
Restricted cash | 470,460 | 462,874 | 439,736 | |||||||
Amortized cost of financial assets | 14,393,377 | 6,471,403 | 10,329,688 | |||||||
Other financial liabilities at amortized cost | ||||||||||
Accounts payable and accrued liabilities (current) | 7,243,500 | 7,794,456 | 4,610,560 | |||||||
Accrued liabilities (non-current) | 1,186,601 | 2,241,979 | ||||||||
Financial liabilities at fair value through profit and loss | ||||||||||
Financial liabilities, at fair value | 190,303 | |||||||||
Carrying amount of financial liabilities | 14,960,911 | 23,646,726 | 21,660,178 | |||||||
2017 Derivative warrant liability (current) | ||||||||||
Financial liabilities at fair value through profit and loss | ||||||||||
Derivative warrant liability (current) | 190,303 | |||||||||
2020 Convertible notes and warrants and derivative warrant liabilities (non-current) | ||||||||||
Financial liabilities at fair value through profit and loss | ||||||||||
Convertible notes and warrants and derivative warrant liabilities (non-current) | 1,484,529 | |||||||||
Derivative warrant financial liability from financing | ||||||||||
Financial liabilities at fair value through profit and loss | ||||||||||
Financial liabilities, at fair value | 190,303 | |||||||||
Derivative warrant financial liability from financing | Level 3 | ||||||||||
Financial liabilities at fair value through profit and loss | ||||||||||
Financial liabilities, at fair value | 190,303 | |||||||||
2017 Convertible notes | ||||||||||
Financial liabilities at fair value through profit and loss | ||||||||||
Financial liabilities, at fair value | $ 3,783,494 | 5,400,189 | 14,617,336 | $ 26,100,900 | ||||||
Convertible Notes (current) | 5,400,189 | 1,423,224 | ||||||||
Convertible Notes (non-current) | 13,194,112 | |||||||||
2017 Convertible notes | Level 3 | ||||||||||
Financial liabilities at fair value through profit and loss | ||||||||||
Financial liabilities, at fair value | 5,400,189 | $ 14,617,336 | ||||||||
2019 Convertible notes | ||||||||||
Financial liabilities at fair value through profit and loss | ||||||||||
Financial liabilities, at fair value | 6,195,357 | $ 5,957,564 | $ 9,714,498 | $ 6,454,757 | 9,265,480 | $ 9,775,000 | ||||
Convertible Notes (current) | 38,633 | 1,090,561 | ||||||||
Convertible Notes (non-current) | 6,156,724 | $ 1,016,000 | 8,174,919 | |||||||
2019 Convertible notes | Level 3 | ||||||||||
Financial liabilities at fair value through profit and loss | ||||||||||
Financial liabilities, at fair value | 6,195,357 | $ 9,265,480 | ||||||||
2020 Convertible notes | ||||||||||
Financial liabilities at fair value through profit and loss | ||||||||||
Financial liabilities, at fair value | 2,616,202 | $ 2,796,726 | $ 2,619,248 | $ 6,449,634 | ||||||
Convertible Notes (current) | 37,525 | |||||||||
Convertible Notes (non-current) | 2,578,677 | |||||||||
Convertible notes and warrants and derivative warrant liabilities (non-current) | 1,484,529 | |||||||||
2020 Convertible notes and warrants and derivative warrant liabilities | ||||||||||
Financial liabilities at fair value through profit and loss | ||||||||||
Financial liabilities, at fair value | 1,522,054 | |||||||||
2020 Convertible notes and warrants and derivative warrant liabilities | Level 3 | ||||||||||
Financial liabilities at fair value through profit and loss | ||||||||||
Financial liabilities, at fair value | $ 1,522,054 |
FINANCIAL RISK MANAGEMENT - For
FINANCIAL RISK MANAGEMENT - Foreign exchange and interest rate risk (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Foreign exchange risk | |||
Financial risk factors | |||
Increase/Decrease of rate (in percent) | 10.00% | ||
Canadian dollars | Foreign exchange risk | Cash and cash equivalents, and restricted cash | |||
Financial risk factors | |||
Increase/Decrease amount | $ 80,953 | $ 5,254 | $ 4,837 |
Canadian dollars | Foreign exchange risk | Accounts Payable | |||
Financial risk factors | |||
Increase/Decrease amount | $ 102,662 | $ 80,654 | $ 13,000 |
Euros | |||
Financial risk factors | |||
Revenue (as a percent) | 45.00% | 30.00% | 23.00% |
Euros | Foreign exchange risk | Accounts receivables | |||
Financial risk factors | |||
Increase/Decrease amount | $ 8,114 | $ 6,288 | $ 6,000 |
Euros | Foreign exchange risk | Cash and cash equivalents, and restricted cash | |||
Financial risk factors | |||
Increase/Decrease amount | 49,459 | 2,780 | 5,855 |
Euros | Foreign exchange risk | Accounts Payable | |||
Financial risk factors | |||
Increase/Decrease amount | $ 108,703 | $ 176,569 | $ 30,000 |
FINANCIAL RISK MANAGEMENT - Liq
FINANCIAL RISK MANAGEMENT - Liquidity risk (Details) - USD ($) | Feb. 12, 2021 | Feb. 12, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Liquidity Risk | ||||||
Cash and cash equivalents | $ 12,935,860 | $ 5,292,833 | $ 9,242,809 | $ 17,507,157 | ||
Current trade payables | 3,705,626 | |||||
February 2021 offering | ||||||
Liquidity Risk | ||||||
Gross proceeds from issue of units | $ 72,000,000 | $ 72,000,000 | ||||
Maximum number of years proceeds from financing offerings meets the requirements of operations | 3 years | 3 years | ||||
Not past due | ||||||
Liquidity Risk | ||||||
Current trade payables | 1,612,254 | |||||
30 - 60 days | ||||||
Liquidity Risk | ||||||
Current trade payables | 869,498 | |||||
Over 60 days | ||||||
Liquidity Risk | ||||||
Current trade payables | $ 1,223,874 |
FINANCIAL RISK MANAGEMENT - Non
FINANCIAL RISK MANAGEMENT - Non-derivative accrued liabilities (Details) | Dec. 31, 2020USD ($) |
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | |
Collaboration, license and settlement agreements (undiscounted) | $ 1,250,000 |
Less than 1 year | |
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | |
Collaboration, license and settlement agreements (undiscounted) | $ 1,250,000 |
FINANCIAL RISK MANAGEMENT - Cre
FINANCIAL RISK MANAGEMENT - Credit risk (Details) - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Accounts receivables | |||
Credit risk | |||
Maximum exposure to credit risk | $ 322,201 | $ 597,505 | $ 637,421 |
Trades accounts receivables | 322,201 | 597,505 | 637,421 |
Accounts receivable write down | 0 | 64,600 | 489,449 |
Accounts receivables | Overdue | |||
Credit risk | |||
Trades accounts receivables | 146,658 | 148,815 | 311,642 |
Cash and cash equivalents, and restricted cash | |||
Credit risk | |||
Maximum exposure to credit risk | $ 13,406,320 | $ 5,755,707 | $ 9,682,545 |
CASH AND CASH EQUIVALENTS (Deta
CASH AND CASH EQUIVALENTS (Details) - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Cash held in: | ||||
Cash and cash equivalents | $ 12,935,860 | $ 5,292,833 | $ 9,242,809 | $ 17,507,157 |
United States dollars | ||||
Cash held in: | ||||
Cash | 11,631,843 | 4,489,501 | 8,173,582 | |
Canadian dollars | ||||
Cash held in: | ||||
Cash | 809,429 | 525,371 | 483,730 | |
Euros | ||||
Cash held in: | ||||
Cash | $ 494,588 | $ 277,961 | $ 585,497 |
ACCOUNTS RECEIVABLE (Details)
ACCOUNTS RECEIVABLE (Details) - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Account receivable | |||
Trade accounts receivable | $ 322,201 | $ 597,505 | $ 637,421 |
Other accounts receivable | 116,905 | 118,191 | 9,722 |
Income tax receivable | 547,951 | ||
Total trade and other accounts receivables | 987,057 | 715,696 | 647,143 |
Accounts receivables | |||
Account receivable | |||
Trade receivables | 322,201 | 597,505 | 637,421 |
Accounts receivable write down | 0 | 64,600 | 489,449 |
Accounts receivables | Loss allowance | |||
Account receivable | |||
Trade receivables | (20,001) | (23,567) | (35,690) |
Accounts receivables | Not past due | |||
Account receivable | |||
Trade receivables | 195,545 | 472,257 | 361,469 |
Accounts receivables | Past due 0 - 30 days | |||
Account receivable | |||
Trade receivables | 14,139 | 18,614 | |
Accounts receivables | 30 - 60 days | |||
Account receivable | |||
Trade receivables | 35,114 | 20,000 | |
Accounts receivables | 60 - 90 days | |||
Account receivable | |||
Trade receivables | 11,543 | 54,428 | |
Accounts receivables | Over 120 days | |||
Account receivable | |||
Trade receivables | $ 100,000 | $ 114,676 | $ 238,600 |
FINANCE LEASE RECEIVABLE (Detai
FINANCE LEASE RECEIVABLE (Details) - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
FINANCE LEASE RECEIVABLE | ||
Current | $ 95,849 | $ 86,764 |
Non-current | 42,841 | 138,690 |
Total | $ 138,690 | $ 225,454 |
FINANCE LEASE RECEIVABLE - Matu
FINANCE LEASE RECEIVABLE - Maturity analysis of the undiscounted finance lease receivables (Details) | Dec. 31, 2020USD ($) |
FINANCE LEASE RECEIVABLE | |
Total undiscounted finance lease receivables | $ 149,322 |
Less than 1 year | |
FINANCE LEASE RECEIVABLE | |
Total undiscounted finance lease receivables | 105,404 |
1-2 years | |
FINANCE LEASE RECEIVABLE | |
Total undiscounted finance lease receivables | $ 43,918 |
INVENTORY AND RESEARCH AND DE_3
INVENTORY AND RESEARCH AND DEVELOPMENT SUPPLIES (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
INVENTORY AND RESEARCH AND DEVELOPMENT SUPPLIES | |||
Raw materials | $ 694,043 | $ 500,263 | $ 301,693 |
Work in progress | 2,435 | ||
Finished goods | 145,429 | 118,387 | 14,007 |
Total inventory | 839,472 | 618,650 | 318,135 |
Research and development supplies | 167,378 | 671,845 | 1,274,653 |
Inventory expensed to cost of goods sold | $ 446,239 | $ 458,436 | $ 366,258 |
PREPAID EXPENSES AND OTHER AS_3
PREPAID EXPENSES AND OTHER ASSETS (Details) - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
PREPAID EXPENSES AND OTHER ASSETS | |||
Prepaid insurance | $ 367,969 | $ 269,262 | $ 190,849 |
Deposits on rental agreements | 128,680 | 119,660 | 276,500 |
Retainers for professional services | 23,000 | 23,000 | 5,593 |
Other prepaid expenses and other assets | 185,822 | 218,120 | 118,294 |
Prepaid expenses and other assets | $ 705,471 | $ 630,042 | $ 591,236 |
RESTRICTED CASH (Details)
RESTRICTED CASH (Details) | Dec. 31, 2020CAD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) |
RESTRICTED CASH | ||||
Restricted cash | $ 470,460 | $ 462,874 | $ 439,736 | |
Cash collateral as a guarantee | $ 600,000 |
RIGHT OF USE ASSET (Details)
RIGHT OF USE ASSET (Details) - USD ($) | Dec. 19, 2020 | Oct. 07, 2019 | Dec. 19, 2018 | Aug. 01, 2018 | Jun. 01, 2017 | Dec. 19, 2016 | Jul. 01, 2015 | Oct. 01, 2014 | Sep. 01, 2014 | Jun. 30, 2020 | Aug. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2019 |
Disclosure of quantitative information about right-of-use assets [line items] | ||||||||||||||
Balance at the beginning | $ 720,473 | $ 1,407,704 | ||||||||||||
Impairment of right-of-use asset | $ 104,544 | |||||||||||||
Balance at the end | 830,551 | 720,473 | 720,473 | |||||||||||
COST | ||||||||||||||
Disclosure of quantitative information about right-of-use assets [line items] | ||||||||||||||
Balance at the beginning | 1,057,333 | 1,407,704 | ||||||||||||
Impairment of right-of-use asset | (231,773) | |||||||||||||
Impairment reversal | 156,366 | |||||||||||||
Sublease | (274,965) | |||||||||||||
Addition and lease modification | 478,281 | |||||||||||||
Balance at the end | 1,535,614 | 1,057,333 | 1,057,333 | |||||||||||
ACCUMULATED DEPRECIATION | ||||||||||||||
Disclosure of quantitative information about right-of-use assets [line items] | ||||||||||||||
Balance at the beginning | (336,860) | |||||||||||||
Depreciation for the year | 368,203 | (336,860) | ||||||||||||
Balance at the end | $ (705,063) | $ (336,860) | $ (336,860) | |||||||||||
Richmond, Canada | ||||||||||||||
Disclosure of quantitative information about right-of-use assets [line items] | ||||||||||||||
Term of the lease | 36 months | 24 months | 36 months | |||||||||||
Renewal term of lease | 24 months | 24 months | 24 months | 36 months | ||||||||||
Term of combined lease | 60 months | |||||||||||||
Term for sublease agreement | 32 months | |||||||||||||
Richmond, Canada | Entering into significant commitments | Forecast | ||||||||||||||
Disclosure of quantitative information about right-of-use assets [line items] | ||||||||||||||
Renewal term of lease | 36 months | |||||||||||||
Minneapolis | ||||||||||||||
Disclosure of quantitative information about right-of-use assets [line items] | ||||||||||||||
Term of the lease | 66 months | |||||||||||||
Renewal term of lease | 36 months | |||||||||||||
Term of combined lease | 69 months |
PROPERTY AND EQUIPMENT (Details
PROPERTY AND EQUIPMENT (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
PROPERTY, PLANT AND EQUIPMENT | |||
Property, plant and equipment at beginning of the year | $ 767,973 | $ 813,628 | |
Property, plant and equipment at end of the year | 803,280 | 767,973 | $ 813,628 |
COST | |||
PROPERTY, PLANT AND EQUIPMENT | |||
Property, plant and equipment at beginning of the year | (3,415,476) | (3,171,975) | 3,979,910 |
Additions during the year | 341,767 | 243,501 | 190,382 |
Disposals during the year | 88,285 | 998,317 | |
Property, plant and equipment at end of the year | 3,668,958 | (3,415,476) | (3,171,975) |
ACCUMULATED DEPRECIATION | |||
PROPERTY, PLANT AND EQUIPMENT | |||
Property, plant and equipment at beginning of the year | (2,647,503) | (2,358,347) | (2,294,730) |
Depreciation for the year | 294,494 | 291,820 | 384,126 |
Disposals during the year | (76,319) | (2,664) | (320,509) |
Property, plant and equipment at end of the year | (2,865,678) | (2,647,503) | (2,358,347) |
Land | COST | |||
PROPERTY, PLANT AND EQUIPMENT | |||
Property, plant and equipment at beginning of the year | 249,493 | ||
Disposals during the year | 249,493 | ||
Building | COST | |||
PROPERTY, PLANT AND EQUIPMENT | |||
Property, plant and equipment at beginning of the year | 438,471 | ||
Disposals during the year | 438,471 | ||
Building | ACCUMULATED DEPRECIATION | |||
PROPERTY, PLANT AND EQUIPMENT | |||
Property, plant and equipment at beginning of the year | (53,564) | ||
Depreciation for the year | 7,698 | ||
Disposals during the year | (61,262) | ||
Leasehold improvements | |||
PROPERTY, PLANT AND EQUIPMENT | |||
Property, plant and equipment at beginning of the year | 61,951 | 80,083 | |
Property, plant and equipment at end of the year | 36,315 | 61,951 | 80,083 |
Leasehold improvements | COST | |||
PROPERTY, PLANT AND EQUIPMENT | |||
Property, plant and equipment at beginning of the year | (169,938) | (169,938) | 169,938 |
Property, plant and equipment at end of the year | 169,938 | (169,938) | (169,938) |
Leasehold improvements | ACCUMULATED DEPRECIATION | |||
PROPERTY, PLANT AND EQUIPMENT | |||
Property, plant and equipment at beginning of the year | (107,987) | (89,855) | (66,416) |
Depreciation for the year | 25,636 | 18,132 | 23,439 |
Property, plant and equipment at end of the year | (133,623) | (107,987) | (89,855) |
Production & development equipment | |||
PROPERTY, PLANT AND EQUIPMENT | |||
Property, plant and equipment at beginning of the year | 558,757 | 537,353 | |
Property, plant and equipment at end of the year | 564,147 | 558,757 | 537,353 |
Production & development equipment | COST | |||
PROPERTY, PLANT AND EQUIPMENT | |||
Property, plant and equipment at beginning of the year | (1,692,127) | (1,488,958) | 1,649,728 |
Additions during the year | 202,329 | 203,169 | 149,583 |
Disposals during the year | 88,285 | 310,353 | |
Property, plant and equipment at end of the year | 1,806,171 | (1,692,127) | (1,488,958) |
Production & development equipment | ACCUMULATED DEPRECIATION | |||
PROPERTY, PLANT AND EQUIPMENT | |||
Property, plant and equipment at beginning of the year | (1,133,370) | (951,605) | (998,944) |
Depreciation for the year | 184,973 | 184,429 | 211,908 |
Disposals during the year | (76,319) | (2,664) | (259,247) |
Property, plant and equipment at end of the year | (1,242,024) | (1,133,370) | (951,605) |
Computer hardware | |||
PROPERTY, PLANT AND EQUIPMENT | |||
Property, plant and equipment at beginning of the year | 77,335 | 110,479 | |
Property, plant and equipment at end of the year | 149,669 | 77,335 | 110,479 |
Computer hardware | COST | |||
PROPERTY, PLANT AND EQUIPMENT | |||
Property, plant and equipment at beginning of the year | (543,922) | (543,922) | 543,922 |
Additions during the year | 106,149 | ||
Property, plant and equipment at end of the year | 650,071 | (543,922) | (543,922) |
Computer hardware | ACCUMULATED DEPRECIATION | |||
PROPERTY, PLANT AND EQUIPMENT | |||
Property, plant and equipment at beginning of the year | (466,587) | (433,443) | (386,095) |
Depreciation for the year | 33,815 | 33,144 | 47,348 |
Property, plant and equipment at end of the year | (500,402) | (466,587) | (433,443) |
Computer software | |||
PROPERTY, PLANT AND EQUIPMENT | |||
Property, plant and equipment at beginning of the year | 6,961 | 7,000 | |
Property, plant and equipment at end of the year | 2,773 | 6,961 | 7,000 |
Computer software | COST | |||
PROPERTY, PLANT AND EQUIPMENT | |||
Property, plant and equipment at beginning of the year | (693,404) | (653,072) | 612,273 |
Additions during the year | 33,289 | 40,332 | 40,799 |
Property, plant and equipment at end of the year | 726,693 | (693,404) | (653,072) |
Computer software | ACCUMULATED DEPRECIATION | |||
PROPERTY, PLANT AND EQUIPMENT | |||
Property, plant and equipment at beginning of the year | (686,443) | (646,072) | (572,017) |
Depreciation for the year | 37,477 | 40,371 | 74,055 |
Property, plant and equipment at end of the year | (723,920) | (686,443) | (646,072) |
Office equipment | |||
PROPERTY, PLANT AND EQUIPMENT | |||
Property, plant and equipment at beginning of the year | 62,969 | 78,713 | |
Property, plant and equipment at end of the year | 50,376 | 62,969 | 78,713 |
Office equipment | COST | |||
PROPERTY, PLANT AND EQUIPMENT | |||
Property, plant and equipment at beginning of the year | (316,085) | (316,085) | 316,085 |
Property, plant and equipment at end of the year | 316,085 | (316,085) | (316,085) |
Office equipment | ACCUMULATED DEPRECIATION | |||
PROPERTY, PLANT AND EQUIPMENT | |||
Property, plant and equipment at beginning of the year | (253,116) | (237,372) | (217,694) |
Depreciation for the year | 12,593 | 15,744 | 19,678 |
Property, plant and equipment at end of the year | $ (265,709) | $ (253,116) | $ (237,372) |
ACCOUNTS PAYABLE AND ACCRUED _3
ACCOUNTS PAYABLE AND ACCRUED LIABILITIES (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Current accounts payable and accrued liabilities | |||
Trade payables | $ 3,705,626 | $ 3,993,203 | $ 898,711 |
Accrued liabilities | 1,421,433 | 2,163,886 | 1,117,673 |
Accrued vacation | 335,681 | 211,168 | 142,730 |
Accrued employee termination expenses | 13,887 | 373,171 | |
Other accounts payable | 535,124 | 320,306 | 190,496 |
Share appreciation rights liability | 59,036 | ||
Collaboration, license and settlement agreements provision | 1,186,600 | 1,092,006 | 1,887,779 |
Total current accounts payable and accrued liabilities | 7,243,500 | 7,794,456 | 4,610,560 |
Non-current accrued liabilities | |||
Non-current collaboration, license and settlement agreements provision | 1,186,601 | 2,241,979 | |
Non-current accrued liabilities | 1,186,601 | 2,241,979 | |
Total accounts payable and accrued liabilities | 7,243,500 | $ 8,981,057 | $ 6,852,539 |
Settlement charges | 470,349 | ||
Settlement provision | $ 716,251 |
LEASE LIABILITY (Details)
LEASE LIABILITY (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Jan. 01, 2019 | |
LEASE LIABILITY | |||
Balance at January 1, 2019, on adoption of IFRS 16 | $ 939,791 | $ 904,879 | $ 1,289,106 |
Addition and lease modification | 478,280 | ||
Interest expense | 106,843 | 128,911 | |
Lease payments | (550,211) | (513,138) | |
Lease Liability, current | 342,910 | 436,352 | |
Lease Liability, non-current | $ 596,881 | $ 468,527 |
LEASE LIABILITY - Maturity anal
LEASE LIABILITY - Maturity analysis (Details) | Dec. 31, 2020USD ($) |
Maturity analysis of operating lease payments | |
Undiscounted contractual balances of the lease liabilities | $ 1,149,630 |
Less than 1 year | |
Maturity analysis of operating lease payments | |
Undiscounted contractual balances of the lease liabilities | 484,782 |
In more than one year, but not more than five years | |
Maturity analysis of operating lease payments | |
Undiscounted contractual balances of the lease liabilities | $ 664,848 |
DERIVATIVE WARRANT LIABILITY _3
DERIVATIVE WARRANT LIABILITY FROM FINANCING AND CONVERTIBLE NOTE (Details) | May 28, 2020USD ($)$ / sharesshares | May 26, 2020USD ($)shares | May 16, 2019USD ($)derivative$ / sharesshares | Nov. 17, 2017USD ($)$ / sharesshares | Dec. 31, 2017USD ($) | Dec. 31, 2020USD ($)$ / sharesshares | Dec. 31, 2020USD ($)$ / shares | Dec. 31, 2019USD ($)$ / sharesshares | Dec. 31, 2018USD ($)$ / shares | Dec. 31, 2018USD ($)$ / sharesshares | Sep. 30, 2020USD ($) | Jun. 30, 2020USD ($) | Mar. 31, 2020USD ($) | Nov. 30, 2019 | May 31, 2019 |
Derivative financial liability and convertible note | |||||||||||||||
Proceeds from exercise of warrants | $ | $ 4,973,035 | $ 1,200,400 | $ 13,816,648 | ||||||||||||
Treasury shares issued | 3,573 | ||||||||||||||
Fair value of warrants | $ | 190,303 | $ 190,303 | |||||||||||||
Proceeds from issuing shares | $ | 5,000,000 | $ 11,483,496 | |||||||||||||
Repayment of 2019 convertible note | $ | 4,877,225 | ||||||||||||||
2017 Convertible notes | |||||||||||||||
Derivative financial liability and convertible note | |||||||||||||||
Number of warrants exercised | 1,016,000 | 11,197,000 | |||||||||||||
Aggregate principal amount | $ | $ 32,750,000 | ||||||||||||||
Original issue price of note | $ | $ 850 | 850 | |||||||||||||
Principal amount of note | $ | $ 1,000 | $ 1,000 | |||||||||||||
Term of Notes | 18 months | ||||||||||||||
Interest rate | 0.00% | 0.00% | |||||||||||||
Interest rate upon an event of default | 15.00% | 15.00% | |||||||||||||
Number of days considered for computing interest | 360 days | ||||||||||||||
Percentage of VWAP used to calculate conversion price | 85.00% | ||||||||||||||
Trading period considered for calculating VWAP | 10 days | ||||||||||||||
Fair value of warrants | $ | 26,100,900 | $ 5,400,189 | $ 14,617,336 | $ 14,617,336 | $ 3,783,494 | ||||||||||
Deferred loss | $ | $ 5,113,917 | ||||||||||||||
Price of Neovasc common share (in dollars per share) | $ / shares | $ 1.46 | $ 1.46 | $ 5.41 | $ 6.03 | $ 6.03 | ||||||||||
Dividend Yield (as a percent) | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | ||||||||||
Historical volatility of Neovasc common share (as a percent) | 1.0084 | 1.0084 | 1.2954 | 1.4196 | 1.4196 | ||||||||||
Historical volatility of index (as a percent) | 36.07% | 36.07% | 11.65% | 15.37% | 15.37% | ||||||||||
Volatility input (as a percent) | 75.16% | 75.16% | 70.59% | 78.67% | 78.67% | ||||||||||
Risk-free rate (as a percent) | 1.11% | 1.11% | 1.79% | 2.52% | 2.52% | ||||||||||
Credit spread (as a percent) | 29.58% | 29.58% | 23.00% | 24.51% | 24.51% | ||||||||||
Principal amount | $ | $ 32,750,000 | ||||||||||||||
Borrowings, interest rate | 0.00% | 0.00% | |||||||||||||
2019 Convertible notes | |||||||||||||||
Derivative financial liability and convertible note | |||||||||||||||
Fair value of warrants | $ | $ 9,775,000 | $ 6,195,357 | $ 6,195,357 | $ 9,265,480 | $ 5,957,564 | $ 9,714,498 | $ 6,454,757 | ||||||||
Price of Neovasc common share (in dollars per share) | $ / shares | $ 49.46 | $ 0.95 | $ 0.95 | $ 5.41 | |||||||||||
Dividend Yield (as a percent) | 0.00% | 0.00% | 0.00% | 0.00% | |||||||||||
Historical volatility of Neovasc common share (as a percent) | 1.4238 | 1.0342 | 1.0342 | 1.2477 | |||||||||||
Historical volatility of index (as a percent) | 15.66% | 23.11% | 23.11% | 13.76% | |||||||||||
Volatility input (as a percent) | 79.02% | 63.26% | 63.26% | 69.26% | |||||||||||
Risk-free rate (as a percent) | 2.13% | 0.19% | 0.19% | 1.65% | |||||||||||
Credit spread (as a percent) | 19.64% | 18.18% | 18.18% | 27.15% | |||||||||||
Original issue discount | $ | $ 1,725,000 | ||||||||||||||
Maximum total outstanding common shares convertible | 19.99% | ||||||||||||||
Number of embedded derivatives | derivative | 2 | ||||||||||||||
Repayment of 2019 convertible note | $ | $ 2,897,000 | ||||||||||||||
Convertible common shares issued | 500,014 | ||||||||||||||
Warrants Issued | 500,000 | ||||||||||||||
2019 Convertible notes | For the first year after the closing date | |||||||||||||||
Derivative financial liability and convertible note | |||||||||||||||
Interest rate | 8.00% | 8.00% | |||||||||||||
Interest rate, payable in cash | 5.00% | 5.00% | |||||||||||||
Borrowings, interest rate | 8.00% | 8.00% | |||||||||||||
2019 Convertible notes | After the first year and until maturity | |||||||||||||||
Derivative financial liability and convertible note | |||||||||||||||
Interest rate | 10.00% | ||||||||||||||
Interest rate, payable in cash | 7.00% | ||||||||||||||
Borrowings, interest rate | 10.00% | ||||||||||||||
2019 Convertible notes | Prepaid prior to the 1st anniversary of issuance | |||||||||||||||
Derivative financial liability and convertible note | |||||||||||||||
Prepayment penalties (as a percent) | 3.00% | ||||||||||||||
2019 Convertible notes | Prepaid between the 1st and 2nd anniversaries of issuance | |||||||||||||||
Derivative financial liability and convertible note | |||||||||||||||
Prepayment penalties (as a percent) | 2.00% | ||||||||||||||
2019 Convertible notes | Prepaid after the 2nd anniversary | |||||||||||||||
Derivative financial liability and convertible note | |||||||||||||||
Prepayment penalties (as a percent) | 1.00% | ||||||||||||||
2019 Convertible notes | Prior to the 2nd anniversary of issuance | |||||||||||||||
Derivative financial liability and convertible note | |||||||||||||||
Conversion price fluctuation (in dollars per share) | $ / shares | $ 7.50 | ||||||||||||||
2019 Convertible notes | Between the 2nd and 3rd anniversaries of issuance | |||||||||||||||
Derivative financial liability and convertible note | |||||||||||||||
Conversion price fluctuation (in dollars per share) | $ / shares | 8.50 | ||||||||||||||
2019 Convertible notes | 3rd anniversary of issuance | |||||||||||||||
Derivative financial liability and convertible note | |||||||||||||||
Conversion price fluctuation (in dollars per share) | $ / shares | $ 9.70 | ||||||||||||||
2020 Convertible Notes | |||||||||||||||
Derivative financial liability and convertible note | |||||||||||||||
Aggregate principal amount | $ | $ 5 | ||||||||||||||
Interest rate | 8.00% | ||||||||||||||
Number of days considered for computing interest | 360 days | ||||||||||||||
Fair value of warrants | $ | $ 6,449,634 | ||||||||||||||
Deferred loss | $ | $ 3,511,670 | ||||||||||||||
Price of Neovasc common share (in dollars per share) | $ / shares | $ 2.86 | $ 0.95 | $ 0.95 | ||||||||||||
Historical volatility of Neovasc common share (as a percent) | 127.50 | 116.72 | 116.72 | ||||||||||||
Historical volatility of index (as a percent) | 18.91% | 20.74% | 20.74% | ||||||||||||
Volatility input (as a percent) | 73.21% | 68.73% | 68.73% | ||||||||||||
Risk-free rate (as a percent) | 0.32% | 0.26% | 0.26% | ||||||||||||
Credit spread (as a percent) | 19.35% | 14.42% | 14.42% | ||||||||||||
Convertible common shares issued | 1,776,041 | ||||||||||||||
Principal amount | $ | $ 5 | ||||||||||||||
Convertible price per share | $ / shares | $ 2.815 | ||||||||||||||
Borrowings, interest rate | 8.00% | ||||||||||||||
Period of Maturity date arising after issuance with holder option for early redemption at 24 months | 48 months | ||||||||||||||
Holding of shares for eligible of conversion of notes into shares (as a percentage) | 9.99% | ||||||||||||||
2020 Convertible Notes | Option premia in first year | |||||||||||||||
Derivative financial liability and convertible note | |||||||||||||||
Change of control redemption option with option premia (as a percentage) | 125.00% | ||||||||||||||
2020 Convertible Notes | Option premia in second year | |||||||||||||||
Derivative financial liability and convertible note | |||||||||||||||
Change of control redemption option with option premia (as a percentage) | 115.00% | ||||||||||||||
2020 Convertible Notes | Option premia in third year | |||||||||||||||
Derivative financial liability and convertible note | |||||||||||||||
Change of control redemption option with option premia (as a percentage) | 105.00% | ||||||||||||||
2020 Convertible Notes | Option premia thereafter | |||||||||||||||
Derivative financial liability and convertible note | |||||||||||||||
Change of control redemption option with option premia (as a percentage) | 100.00% | ||||||||||||||
Series A and Series B Units | |||||||||||||||
Derivative financial liability and convertible note | |||||||||||||||
Issue price per unit | $ / shares | $ 1.46 | ||||||||||||||
Gross proceeds from issue of units | $ | $ 37,487,497 | ||||||||||||||
Series A Units | |||||||||||||||
Derivative financial liability and convertible note | |||||||||||||||
Number of units issued | 6,609,588 | ||||||||||||||
Number of common shares comprised in a unit | 0.001 | ||||||||||||||
Series B Units | |||||||||||||||
Derivative financial liability and convertible note | |||||||||||||||
Number of units issued | 19,066,780 | ||||||||||||||
Number of common shares comprised in a unit | 0.001 | ||||||||||||||
Total common shares issued as a part of unit | 15,493 | ||||||||||||||
Series C Units | |||||||||||||||
Derivative financial liability and convertible note | |||||||||||||||
Number of common shares comprised in a unit | 0.001 | ||||||||||||||
Private placement | 2019 Convertible notes | |||||||||||||||
Derivative financial liability and convertible note | |||||||||||||||
Aggregate principal amount | $ | $ 11,500,000 | ||||||||||||||
Original issue discount | 15.00% | ||||||||||||||
Gross proceeds from issuing debt | $ | $ 9,775,000 | ||||||||||||||
Common shares issued | 334,951 | ||||||||||||||
Price per share | $ / shares | $ 5.15 | ||||||||||||||
Proceeds from issuing shares | $ | $ 1,725,000 | ||||||||||||||
Principal amount | $ | $ 11,500,000 | ||||||||||||||
Series A Warrants | Series A Units | |||||||||||||||
Derivative financial liability and convertible note | |||||||||||||||
Number of warrants comprised in a unit | 1 | ||||||||||||||
Exercise price per warrant | $ / shares | $ 1,610 | ||||||||||||||
Maturity period of warrants | 5 years | ||||||||||||||
Series A Warrants | Series B Units | |||||||||||||||
Derivative financial liability and convertible note | |||||||||||||||
Number of warrants comprised in a unit | 1 | ||||||||||||||
Series A Warrants | Series C Units | |||||||||||||||
Derivative financial liability and convertible note | |||||||||||||||
Number of warrants comprised in a unit | 1 | ||||||||||||||
Series B Warrants | |||||||||||||||
Derivative financial liability and convertible note | |||||||||||||||
Number of common shares comprised in a unit | 0.001 | ||||||||||||||
Series B Warrants | Series A Units | |||||||||||||||
Derivative financial liability and convertible note | |||||||||||||||
Number of warrants comprised in a unit | 1 | ||||||||||||||
Exercise price per warrant | $ / shares | $ 1,610 | ||||||||||||||
Maturity period of warrants | 2 years | ||||||||||||||
Series B Warrants | Series B Units | |||||||||||||||
Derivative financial liability and convertible note | |||||||||||||||
Number of warrants comprised in a unit | 1 | ||||||||||||||
Series B Warrants | Series C Units | |||||||||||||||
Derivative financial liability and convertible note | |||||||||||||||
Number of warrants comprised in a unit | 1 | ||||||||||||||
Series C Warrants | Series A Units | |||||||||||||||
Derivative financial liability and convertible note | |||||||||||||||
Number of warrants comprised in a unit | 0.40 | ||||||||||||||
Exercise price per warrant | $ / shares | $ 1.46 | ||||||||||||||
Maturity period of warrants | 2 years | ||||||||||||||
Series C Warrants | Series B Units | |||||||||||||||
Derivative financial liability and convertible note | |||||||||||||||
Number of warrants comprised in a unit | 0.40 | ||||||||||||||
Series D Warrants | |||||||||||||||
Derivative financial liability and convertible note | |||||||||||||||
Number of warrants exercised | 3,573,830 | ||||||||||||||
Proceeds from exercise of warrants | $ | $ 35,738 | ||||||||||||||
Series D Warrants | Series B Units | |||||||||||||||
Derivative financial liability and convertible note | |||||||||||||||
Number of warrants comprised in a unit | 1 | ||||||||||||||
Exercise price per warrant | $ / shares | $ 1,460 | ||||||||||||||
Nominal exercise price per warrant | $ / shares | $ 0.001 | ||||||||||||||
Maturity period of warrants | 5 years | ||||||||||||||
Total warrants issued as a part of unit | 3,573,830 | ||||||||||||||
Series E Warrants | 2017 Convertible notes | |||||||||||||||
Derivative financial liability and convertible note | |||||||||||||||
Gross proceeds | $ | $ 27,837,500 | ||||||||||||||
Number of common shares per warrant | 1 | ||||||||||||||
Series E Warrants | Series A and Series B Units | |||||||||||||||
Derivative financial liability and convertible note | |||||||||||||||
Fair value of warrants | $ | $ 89,470,273 | $ 89,470,273 | |||||||||||||
Deferred loss | $ | $ 45,132,259 | ||||||||||||||
Series F Warrants | |||||||||||||||
Derivative financial liability and convertible note | |||||||||||||||
Number of common shares comprised in a unit | 0.001 | ||||||||||||||
Series F Warrants | Series B Units | |||||||||||||||
Derivative financial liability and convertible note | |||||||||||||||
Number of warrants comprised in a unit | 1.1765 | ||||||||||||||
Exercise price per warrant | $ / shares | $ 1,610 | ||||||||||||||
Maturity period of warrants | 2 years | ||||||||||||||
2020 Warrants | |||||||||||||||
Derivative financial liability and convertible note | |||||||||||||||
Warrants Issued | 2,573,959 | ||||||||||||||
Exercise price of warrants | $ / shares | $ 2.634 | ||||||||||||||
Warrants term | 4 years |
DERIVATIVE WARRANT LIABILITY _4
DERIVATIVE WARRANT LIABILITY FROM FINANCING AND CONVERTIBLE NOTE - Carrying Amounts (Details) - USD ($) | Aug. 17, 2020 | Jul. 23, 2020 | May 28, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2019 | Jan. 31, 2019 | Dec. 31, 2017 | Mar. 31, 2020 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | May 26, 2020 | Jun. 30, 2019 |
Carrying amounts of derivative financial liability and convertible notes | |||||||||||||||||||||
Number of warrants outstanding | 0 | ||||||||||||||||||||
Fair value | $ 190,303 | $ 190,303 | |||||||||||||||||||
Amortization of deferred loss | $ 3,494,501 | $ 46,894,189 | |||||||||||||||||||
Fair value adjustment | $ (17,505) | (11,733,761) | |||||||||||||||||||
Balance, Derivative financial liability | 190,303 | ||||||||||||||||||||
Derivative financial liability and convertible note | |||||||||||||||||||||
Balance, 2020 Convertible notes and warrants and derivative liabilities | $ 1,522,054 | $ 1,522,054 | 1,522,054 | ||||||||||||||||||
Series A Warrants | |||||||||||||||||||||
Carrying amounts of derivative financial liability and convertible notes | |||||||||||||||||||||
Cancellation of Warrants | (101,750) | ||||||||||||||||||||
Series B Warrants | |||||||||||||||||||||
Carrying amounts of derivative financial liability and convertible notes | |||||||||||||||||||||
Add: Deferred loss | $ (16,931) | $ (1,004,195) | |||||||||||||||||||
Number of warrants exercised | 822,192 | 9,451,780 | |||||||||||||||||||
Series C Warrants | |||||||||||||||||||||
Carrying amounts of derivative financial liability and convertible notes | |||||||||||||||||||||
Add: Deferred loss | $ (5,638) | ||||||||||||||||||||
Number of warrants exercised | 822,192 | 9,451,780 | |||||||||||||||||||
Series D Warrants | |||||||||||||||||||||
Carrying amounts of derivative financial liability and convertible notes | |||||||||||||||||||||
Number of warrants exercised | 1,698,841 | ||||||||||||||||||||
Series F Warrants | |||||||||||||||||||||
Carrying amounts of derivative financial liability and convertible notes | |||||||||||||||||||||
Add: Deferred loss | $ (29,085,125) | ||||||||||||||||||||
Number of warrants exercised | 22,431,506 | ||||||||||||||||||||
Series A Units | |||||||||||||||||||||
Carrying amounts of derivative financial liability and convertible notes | |||||||||||||||||||||
Fair value | 35,693 | $ 35,693 | |||||||||||||||||||
Fair value adjustment | (5,575) | $ 1,190,630 | |||||||||||||||||||
Balance, Derivative financial liability | 35,693 | ||||||||||||||||||||
Series A Units | Series A Warrants | |||||||||||||||||||||
Carrying amounts of derivative financial liability and convertible notes | |||||||||||||||||||||
Fair value | $ 807,977 | ||||||||||||||||||||
Balance, Derivative financial liability | $ 807,977 | $ 807,977 | $ 2,051,657 | $ 807,977 | $ 2,051,657 | $ 2,051,657 | |||||||||||||||
Number of warrants cancelled | 35,950,340 | ||||||||||||||||||||
Cancellation of Warrants | $ (24,480) | ||||||||||||||||||||
Series B Units | |||||||||||||||||||||
Carrying amounts of derivative financial liability and convertible notes | |||||||||||||||||||||
Fair value | 82,523 | 82,523 | |||||||||||||||||||
Fair value adjustment | (5,253) | (8,411,543) | |||||||||||||||||||
Balance, Derivative financial liability | 82,523 | ||||||||||||||||||||
Series B Units | Series A Warrants | |||||||||||||||||||||
Carrying amounts of derivative financial liability and convertible notes | |||||||||||||||||||||
Cancellation of Warrants | $ (77,270) | ||||||||||||||||||||
Series E Warrants | |||||||||||||||||||||
Carrying amounts of derivative financial liability and convertible notes | |||||||||||||||||||||
Fair value | $ 72,087 | 72,087 | |||||||||||||||||||
Fair value adjustment | (6,677) | (4,512,848) | |||||||||||||||||||
Balance, Derivative financial liability | 72,087 | ||||||||||||||||||||
Series E Warrants | Series E Warrants | |||||||||||||||||||||
Carrying amounts of derivative financial liability and convertible notes | |||||||||||||||||||||
Number of warrants cancelled | 22,431,506 | ||||||||||||||||||||
Cancellation of Warrants | $ (65,410) | ||||||||||||||||||||
Series C Warrants | |||||||||||||||||||||
Carrying amounts of derivative financial liability and convertible notes | |||||||||||||||||||||
Exercise of Warrants | $ (5,638) | ||||||||||||||||||||
Series C Warrants | Series C Warrants | |||||||||||||||||||||
Carrying amounts of derivative financial liability and convertible notes | |||||||||||||||||||||
Exercise of Warrants | $ 822,192 | ||||||||||||||||||||
January 2020 Warrants | |||||||||||||||||||||
Carrying amounts of derivative financial liability and convertible notes | |||||||||||||||||||||
Number of warrants outstanding | 250,000 | 250,000 | 250,000 | ||||||||||||||||||
Fair value | $ 47,856 | 64,422 | 22,644 | $ 22,644 | |||||||||||||||||
Add: Deferred loss | $ (223,791) | ||||||||||||||||||||
Amortization of deferred loss | 30,240 | 5,168 | 5,168 | 22,488 | |||||||||||||||||
Fair value adjustment on exercised warrants | (3,885,746) | (969,133) | |||||||||||||||||||
Fair value adjustment | (1,715,390) | (41,677) | (21,734) | (45,897) | |||||||||||||||||
Fair value adjustment, realized gain (loss) | 422,102 | (957,847) | |||||||||||||||||||
Derecognition of deferred loss | 93,813 | 76,473 | |||||||||||||||||||
Balance, Derivative financial liability | $ 47,856 | $ 64,422 | 64,422 | 22,644 | $ 11,347 | 47,856 | 64,422 | $ 22,644 | $ 11,347 | $ 11,347 | |||||||||||
Unrealized Gain on Warrants Exercised | 3,885,746 | 969,133 | |||||||||||||||||||
January 2020 Warrants | Series A Warrants | |||||||||||||||||||||
Carrying amounts of derivative financial liability and convertible notes | |||||||||||||||||||||
Fair value | 6,145,620 | ||||||||||||||||||||
Number of warrants exercised | 1,185,000 | ||||||||||||||||||||
January 2020 Warrants | Series B Warrants | |||||||||||||||||||||
Carrying amounts of derivative financial liability and convertible notes | |||||||||||||||||||||
Number of warrants exercised | 991,940 | ||||||||||||||||||||
January 2020 Warrants | Pre Funded Warrants | |||||||||||||||||||||
Carrying amounts of derivative financial liability and convertible notes | |||||||||||||||||||||
Number of warrants exercised | 1,241,490 | ||||||||||||||||||||
May 2020 Warrants | |||||||||||||||||||||
Carrying amounts of derivative financial liability and convertible notes | |||||||||||||||||||||
Number of warrants outstanding | 648,910 | 648,910 | 648,910 | ||||||||||||||||||
Fair value | $ 4,526,732 | $ 173,539 | 1,048,732 | ||||||||||||||||||
Add: Deferred loss | 1,843,332 | (2,464,696) | |||||||||||||||||||
Amortization of deferred loss | 35,644 | 35,644 | 55,709 | ||||||||||||||||||
Fair value adjustment | (465,822) | (106,350) | (1,069,013) | ||||||||||||||||||
Balance, Derivative financial liability | 173,539 | 1,048,732 | 1,048,732 | $ (256,639) | 173,539 | 1,048,732 | $ (256,639) | $ (256,639) | |||||||||||||
Number of warrants exercised | 501,000 | 1,424,049 | |||||||||||||||||||
May 2020 Warrants | July 23 warrants | |||||||||||||||||||||
Carrying amounts of derivative financial liability and convertible notes | |||||||||||||||||||||
Fair value adjustment on exercised warrants | (2,082,598) | ||||||||||||||||||||
Unrealized Gain on Warrants Exercised | 2,082,598 | ||||||||||||||||||||
May 2020 Warrants | August 17 Warrants | |||||||||||||||||||||
Carrying amounts of derivative financial liability and convertible notes | |||||||||||||||||||||
Fair value adjustment on exercised warrants | (565,221) | ||||||||||||||||||||
Unrealized Gain on Warrants Exercised | 565,221 | ||||||||||||||||||||
2020 June Warrants | |||||||||||||||||||||
Carrying amounts of derivative financial liability and convertible notes | |||||||||||||||||||||
Number of warrants outstanding | 2,912,277 | 2,912,277 | 2,912,277 | ||||||||||||||||||
Fair value | $ 1,367,053 | 1,799,978 | |||||||||||||||||||
Add: Deferred loss | (448,877) | ||||||||||||||||||||
Amortization of deferred loss | 56,571 | 56,571 | 8,609 | ||||||||||||||||||
Fair value adjustment | (1,472,800) | (489,496) | (164,711) | ||||||||||||||||||
Balance, Derivative financial liability | 1,367,053 | 1,799,978 | 1,799,978 | $ (49,176) | 1,367,053 | 1,799,978 | $ (49,176) | $ (49,176) | |||||||||||||
2020 June Warrants | Series A Warrants | |||||||||||||||||||||
Carrying amounts of derivative financial liability and convertible notes | |||||||||||||||||||||
Fair value | 2,404,957 | ||||||||||||||||||||
Balance, Derivative financial liability | 2,404,957 | 2,404,957 | 2,404,957 | ||||||||||||||||||
2020 August Warrants | |||||||||||||||||||||
Carrying amounts of derivative financial liability and convertible notes | |||||||||||||||||||||
Number of warrants outstanding | 3,399,579 | 3,399,579 | 3,399,579 | ||||||||||||||||||
Fair value | $ (759,991) | ||||||||||||||||||||
Add: Deferred loss | (3,167,758) | ||||||||||||||||||||
Amortization of deferred loss | 212,630 | 399,224 | |||||||||||||||||||
Fair value adjustment | (1,315,978) | (1,834,325) | |||||||||||||||||||
Balance, Derivative financial liability | (759,991) | $ (2,195,092) | (759,991) | $ (2,195,092) | $ (2,195,092) | ||||||||||||||||
2020 August Warrants | Series A Warrants | |||||||||||||||||||||
Carrying amounts of derivative financial liability and convertible notes | |||||||||||||||||||||
Fair value | 3,511,115 | ||||||||||||||||||||
2020 December Warrants | |||||||||||||||||||||
Carrying amounts of derivative financial liability and convertible notes | |||||||||||||||||||||
Number of warrants outstanding | 6,230,803 | 6,230,803 | 6,230,803 | ||||||||||||||||||
Add: Deferred loss | $ (1,278,414) | ||||||||||||||||||||
Amortization of deferred loss | 40,279 | ||||||||||||||||||||
Fair value adjustment | 370,769 | ||||||||||||||||||||
Balance, Derivative financial liability | $ 1,184,291 | $ 1,184,291 | $ 1,184,291 | ||||||||||||||||||
2020 Settlement Warrants | |||||||||||||||||||||
Carrying amounts of derivative financial liability and convertible notes | |||||||||||||||||||||
Number of warrants outstanding | 500,000 | 500,000 | 500,000 | ||||||||||||||||||
Fair value | $ 517,290 | 575,935 | |||||||||||||||||||
Fair value adjustment | (315,617) | (58,645) | (232,042) | ||||||||||||||||||
Balance, Derivative financial liability | $ 807,977 | 517,290 | 575,935 | 575,935 | $ 201,673 | 517,290 | 575,935 | $ 201,673 | $ 201,673 | ||||||||||||
2020 Repayment Warrants | |||||||||||||||||||||
Carrying amounts of derivative financial liability and convertible notes | |||||||||||||||||||||
Number of warrants outstanding | 650,296 | 650,296 | 650,296 | ||||||||||||||||||
Fair value | $ 161,720 | ||||||||||||||||||||
Fair value adjustment | (152,272) | ||||||||||||||||||||
Balance, Derivative financial liability | 161,720 | 9,448 | 161,720 | $ 9,448 | $ 9,448 | ||||||||||||||||
2020 Repayment Warrants | Series A Warrants | |||||||||||||||||||||
Carrying amounts of derivative financial liability and convertible notes | |||||||||||||||||||||
Fair value | 161,720 | ||||||||||||||||||||
Balance, Derivative financial liability | 161,720 | 161,720 | |||||||||||||||||||
2017 Convertible notes | |||||||||||||||||||||
Carrying amounts of derivative financial liability and convertible notes | |||||||||||||||||||||
Fair value | $ 14,617,336 | $ 26,100,900 | 3,783,494 | 5,400,189 | 3,783,494 | 5,400,189 | 14,617,336 | ||||||||||||||
Add: Deferred loss | $ (5,113,917) | ||||||||||||||||||||
Exercise of Warrants | (1,293,093) | (13,095,938) | |||||||||||||||||||
Fair value adjustment Settlement Warrants | (807,977) | ||||||||||||||||||||
Fair value adjustment | (1,599,573) | 1,214,576 | 3,878,791 | ||||||||||||||||||
Fair value adjustment, (unrealized) loss due to changes in credit spread | (17,122) | ||||||||||||||||||||
Re-payment of convertible note | $ (2,897,000) | ||||||||||||||||||||
Balance, Derivative financial liability | 3,783,494 | 3,783,494 | $ 5,400,189 | $ 5,400,189 | 14,617,336 | ||||||||||||||||
Number of warrants exercised | 1,016,000 | 11,197,000 | |||||||||||||||||||
Derivative financial liability and convertible note | |||||||||||||||||||||
Convertible Notes (current) | 5,400,189 | $ 5,400,189 | 1,423,224 | ||||||||||||||||||
Convertible Notes (non-current) | $ 13,194,112 | ||||||||||||||||||||
2019 Convertible notes | |||||||||||||||||||||
Carrying amounts of derivative financial liability and convertible notes | |||||||||||||||||||||
Fair value | 5,957,564 | 9,714,498 | 6,454,757 | 9,265,480 | 9,775,000 | $ 6,454,757 | 9,265,480 | ||||||||||||||
Fair value adjustment | 66,203 | 136,921 | 1,370,016 | (1,533,410) | (509,520) | ||||||||||||||||
Fair value adjustment, realized gain (loss) | (128,776) | 1,034,861 | (413,681) | (143,750) | |||||||||||||||||
Fair value adjustment, (unrealized) loss due to changes in credit spread | 300,366 | 110,229 | 2,303,406 | (1,421,063) | |||||||||||||||||
Fair value adjustment, Repayment warrants | (161,720) | ||||||||||||||||||||
Balance, Derivative financial liability | 5,957,564 | 9,714,498 | 9,714,498 | $ 6,454,757 | 6,195,357 | 5,957,564 | 9,714,498 | $ 6,454,757 | 9,265,480 | 6,195,357 | 6,195,357 | 9,265,480 | |||||||||
Derivative financial liability and convertible note | |||||||||||||||||||||
Convertible Notes (current) | 38,633 | 1,090,561 | 38,633 | 38,633 | 1,090,561 | ||||||||||||||||
Convertible Notes (non-current) | 6,156,724 | $ 8,174,919 | 6,156,724 | 6,156,724 | $ 8,174,919 | $ 1,016,000 | |||||||||||||||
2019 Convertible notes | Convertible Note July 23 Conversion | |||||||||||||||||||||
Carrying amounts of derivative financial liability and convertible notes | |||||||||||||||||||||
Re-payment of convertible note | (3,613,341) | ||||||||||||||||||||
2019 Convertible notes | Convertible Note August 17 Conversion | |||||||||||||||||||||
Carrying amounts of derivative financial liability and convertible notes | |||||||||||||||||||||
Re-payment of convertible note | (1,263,884) | ||||||||||||||||||||
2020 Convertible notes | |||||||||||||||||||||
Carrying amounts of derivative financial liability and convertible notes | |||||||||||||||||||||
Fair value | 6,449,634 | 2,796,726 | 2,619,248 | ||||||||||||||||||
Add: Deferred loss | (3,511,670) | ||||||||||||||||||||
Amortization of deferred loss | 79,373 | 221,283 | 216,282 | ||||||||||||||||||
Fair value adjustment | (438,810) | (450,279) | (186,531) | ||||||||||||||||||
Fair value adjustment, realized gain (loss) | 34,985 | (97,172) | 99,712 | ||||||||||||||||||
Fair value adjustment, (unrealized) loss due to changes in credit spread | 5,736 | 145,644 | 48,015 | ||||||||||||||||||
Balance, Derivative financial liability | $ 2,796,726 | $ 2,619,248 | $ 2,619,248 | 2,616,202 | $ 2,796,726 | $ 2,619,248 | 2,616,202 | 2,616,202 | |||||||||||||
Derivative financial liability and convertible note | |||||||||||||||||||||
Convertible Notes (current) | 37,525 | 37,525 | 37,525 | ||||||||||||||||||
Convertible Notes (non-current) | 2,578,677 | 2,578,677 | 2,578,677 | ||||||||||||||||||
Balance, 2020 Convertible notes and warrants and derivative liabilities | 1,522,054 | 1,522,054 | 1,522,054 | ||||||||||||||||||
2020 Convertible notes and warrants and derivative liabilities, current | 37,525 | 37,525 | 37,525 | ||||||||||||||||||
2020 Convertible notes and warrants and derivative warrant liabilities | 1,484,529 | 1,484,529 | 1,484,529 | ||||||||||||||||||
2020 Convertible notes | January 2020 Warrants | |||||||||||||||||||||
Carrying amounts of derivative financial liability and convertible notes | |||||||||||||||||||||
Balance, Derivative financial liability | 11,347 | 11,347 | 11,347 | ||||||||||||||||||
2020 Convertible notes | May 2020 Warrants | |||||||||||||||||||||
Carrying amounts of derivative financial liability and convertible notes | |||||||||||||||||||||
Balance, Derivative financial liability | (256,639) | (256,639) | (256,639) | ||||||||||||||||||
2020 Convertible notes | 2020 June Warrants | |||||||||||||||||||||
Carrying amounts of derivative financial liability and convertible notes | |||||||||||||||||||||
Balance, Derivative financial liability | (49,176) | (49,176) | (49,176) | ||||||||||||||||||
2020 Convertible notes | 2020 August Warrants | |||||||||||||||||||||
Carrying amounts of derivative financial liability and convertible notes | |||||||||||||||||||||
Balance, Derivative financial liability | (2,195,092) | (2,195,092) | (2,195,092) | ||||||||||||||||||
2020 Convertible notes | 2020 December Warrants | |||||||||||||||||||||
Carrying amounts of derivative financial liability and convertible notes | |||||||||||||||||||||
Balance, Derivative financial liability | 1,184,291 | 1,184,291 | 1,184,291 | ||||||||||||||||||
2020 Convertible notes | 2020 Settlement Warrants | |||||||||||||||||||||
Carrying amounts of derivative financial liability and convertible notes | |||||||||||||||||||||
Balance, Derivative financial liability | 201,673 | 201,673 | 201,673 | ||||||||||||||||||
2020 Convertible notes | 2020 Repayment Warrants | |||||||||||||||||||||
Carrying amounts of derivative financial liability and convertible notes | |||||||||||||||||||||
Balance, Derivative financial liability | $ 9,448 | $ 9,448 | $ 9,448 |
INCOME TAXES - Expected tax exp
INCOME TAXES - Expected tax expense (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Relationship between expected tax expense and provincial income tax rate | |||
Loss before income taxes | $ (29,219,098) | $ (35,102,222) | $ (107,876,382) |
Statutory tax rate | 27.00% | 27.00% | 27.00% |
Recovery of income taxes based on the combined Canadian federal and provincial statutory rates | $ (7,889,156) | $ (9,477,600) | $ (29,126,623) |
Share-based remuneration | 1,324,569 | 861,248 | 1,073,142 |
Unrealized gain on derivatives | (2,320,685) | ||
Effect of historical adjustments | (16,036) | ||
Other permanent differences | (250,111) | 190,096 | 20,930,238 |
Unrecognized deferred tax benefits | 8,061,195 | 8,464,437 | 7,183,316 |
Difference in tax rates between foreign jurisdictions and Canada | 550,131 | (9,389) | 63,056 |
Income tax (recovery)/ expense | (524,057) | 28,793 | 107,093 |
Components of income tax expense | |||
Current tax | $ (524,057) | $ 28,793 | $ 107,093 |
INCOME TAXES - Recognised defer
INCOME TAXES - Recognised deferred tax assets and liabilities (Details) - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Recognized Deferred Tax Assets and Liabilities | |||
Recognized deferred tax assets | $ 693,424 | $ 666,808 | $ 538,023 |
Set off of tax | (693,424) | (666,808) | (538,023) |
Recognized deferred tax liabilities | (693,424) | (666,808) | (538,023) |
Set off of tax | 693,424 | 666,808 | 538,023 |
Unrecognized deferred tax assets | (10,616,227) | (7,843,252) | (5,247,143) |
Total | 318,477,703 | 273,792,687 | 245,013,646 |
Investment tax credits | |||
Recognized Deferred Tax Assets and Liabilities | |||
Recognized deferred tax assets | 464,888 | 464,888 | 528,641 |
Set off of tax | (464,888) | (464,888) | (528,641) |
Recognized deferred tax liabilities | (464,888) | (464,888) | (528,641) |
Set off of tax | 464,888 | 464,888 | 528,641 |
Capital assets | |||
Recognized Deferred Tax Assets and Liabilities | |||
Recognized deferred tax assets | 4,287 | 7,392 | 9,382 |
Set off of tax | (4,287) | (7,392) | (9,382) |
Recognized deferred tax liabilities | (4,287) | (7,392) | (9,382) |
Set off of tax | 4,287 | 7,392 | $ 9,382 |
Lease liability | |||
Recognized Deferred Tax Assets and Liabilities | |||
Recognized deferred tax assets | 224,249 | 194,528 | |
Set off of tax | 224,249 | 194,528 | |
Right of use asset | |||
Recognized Deferred Tax Assets and Liabilities | |||
Set off of tax | (224,249) | (194,528) | |
Recognized deferred tax liabilities | $ (224,249) | $ (194,528) |
INCOME TAXES - Unrecognized ded
INCOME TAXES - Unrecognized deductible temporary differences and unused tax lossess (Details) - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
INCOME TAXES | |||
Deductible temporary differences | $ 10,616,227 | $ 7,843,252 | $ 5,247,143 |
Unused tax credits | 2,416,825 | 2,416,825 | 3,054,186 |
Tax losses | 318,477,703 | 273,792,687 | 245,013,646 |
Total | $ 331,510,755 | $ 284,052,764 | $ 253,314,975 |
INCOME TAXES - Unused tax losse
INCOME TAXES - Unused tax losses (Details) - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Recognized Deferred Tax Assets and Liabilities | |||
Total | $ 318,477,703 | $ 273,792,687 | $ 245,013,646 |
2023 | |||
Recognized Deferred Tax Assets and Liabilities | |||
Total | 6,038,836 | ||
2024 | |||
Recognized Deferred Tax Assets and Liabilities | |||
Total | 6,906,649 | ||
2025 | |||
Recognized Deferred Tax Assets and Liabilities | |||
Total | 18,105,259 | ||
2026 | |||
Recognized Deferred Tax Assets and Liabilities | |||
Total | 32,396,580 | ||
2027 | |||
Recognized Deferred Tax Assets and Liabilities | |||
Total | 135,245,992 | ||
2028 | |||
Recognized Deferred Tax Assets and Liabilities | |||
Total | 33,339,203 | ||
2029 | |||
Recognized Deferred Tax Assets and Liabilities | |||
Total | 15,799,773 | ||
2030 | |||
Recognized Deferred Tax Assets and Liabilities | |||
Total | 21,718,728 | ||
US losses | |||
Recognized Deferred Tax Assets and Liabilities | |||
Total | 12,885,335 | ||
Israel losses | |||
Recognized Deferred Tax Assets and Liabilities | |||
Total | $ 36,041,348 |
SHARE CAPITAL - General (Detail
SHARE CAPITAL - General (Details) | 12 Months Ended | |||
Dec. 31, 2020Voteshares | Dec. 31, 2019shares | Dec. 31, 2018shares | Dec. 31, 2017shares | |
Common shares | ||||
SHARE CAPITAL | ||||
Voting rights for each share | Vote | 1 | |||
Shares issued | 28,928,916 | 8,706,779 | 2,801,720 | 102,916 |
Preferred shares | ||||
SHARE CAPITAL | ||||
Voting rights for each share | Vote | 0 | |||
Shares issued | 0 | |||
Shares outstanding | 0 |
SHARE CAPITAL - Issued and Outs
SHARE CAPITAL - Issued and Outstanding (Details) | Dec. 08, 2020USD ($)$ / sharesshares | Aug. 12, 2020USD ($)$ / sharesshares | Jul. 23, 2020USD ($)shares | Jun. 16, 2020USD ($)$ / sharesshares | May 28, 2020shares | May 26, 2020USD ($)shares | Jan. 06, 2020USD ($)$ / sharesshares | May 16, 2019USD ($)$ / sharesshares | Mar. 15, 2019shares | Mar. 12, 2019shares | Feb. 28, 2019shares | Mar. 31, 2019USD ($)shares | Feb. 28, 2019USD ($)shares | Mar. 31, 2020USD ($)shares | Dec. 31, 2020USD ($)Optionsshares | Dec. 31, 2019USD ($)shares | Dec. 31, 2018USD ($)Optionsshares |
SHARE CAPITAL | |||||||||||||||||
Balance | $ (14,445,765) | $ (14,445,765) | $ (8,332,838) | $ (35,200,448) | |||||||||||||
Common shares issued from exercise of Warrants | 1,437,131 | 113,985,426 | |||||||||||||||
Common Shares issued from exercise of stock options | 204 | ||||||||||||||||
Share-based payments | $ 4,846,776 | 3,189,808 | $ 3,292,877 | ||||||||||||||
Common Shares issued from private placement (vii) | 1,664,662 | ||||||||||||||||
Common Shares issued from exchange of Series A and Series E Warrants (xi) (in shares) | shares | 49,624 | ||||||||||||||||
Share issue related cost | $ 278,482 | ||||||||||||||||
Issue of broker warrants | 315,611 | ||||||||||||||||
Common Shares issued from exercise of stock options (in shares) | Options | 50 | 49 | |||||||||||||||
Balance | $ 1,977,517 | (14,445,765) | $ (8,332,838) | ||||||||||||||
Proceeds from exercise of warrants | $ 4,973,035 | 1,200,400 | $ 13,816,648 | ||||||||||||||
Issued for cash on exercise of options (in shares) | Options | 50 | 49 | |||||||||||||||
Gross proceeds from issuance of shares | $ 5,000,000 | 11,483,496 | |||||||||||||||
Fair value charge for broker warrants issued | $ 315,611 | ||||||||||||||||
Basis of exchange of warrants | shares | 0.085 | 0.00085 | |||||||||||||||
Common Shares issued from public offerings | 31,765,981 | $ 7,802,417 | |||||||||||||||
Common Shares issued from exercise of 2017 Notes | 1,293,093 | 13,095,938 | $ 18,582,374 | ||||||||||||||
Underwritten Public Offering | |||||||||||||||||
SHARE CAPITAL | |||||||||||||||||
Gross proceeds from issuance of shares | $ 5,000,000 | $ 5,000,000 | |||||||||||||||
Number Of Broker Warrants Issued | shares | 72,222 | 72,222 | 144,444 | 144,444 | |||||||||||||
Number Of Broker Warrants Issued | shares | 72,222 | 72,222 | 144,444 | 144,444 | |||||||||||||
January 2020 Public offering | |||||||||||||||||
SHARE CAPITAL | |||||||||||||||||
Common Shares issued from exchange of Series A and Series E Warrants (xi) (in shares) | shares | 672,937 | ||||||||||||||||
Share issue related cost | $ 185,883 | ||||||||||||||||
Issue of broker warrants | $ 82,597 | ||||||||||||||||
Number of Warrants Initially Granted | shares | 157,721 | ||||||||||||||||
Proceeds from exercise of warrants | $ 10,000,000 | ||||||||||||||||
Number of warrants cancelled and surrendered | shares | 2,176,490 | ||||||||||||||||
Gross proceeds from issue of units | 10,000,000 | ||||||||||||||||
Underwriting commission | 462,880 | ||||||||||||||||
Fair value charge for broker warrants issued | $ 82,597 | ||||||||||||||||
Number of broker warrants issued | shares | 157,721 | ||||||||||||||||
Basis of exchange of warrants | shares | 0.3092 | ||||||||||||||||
June 2020 Public offering | |||||||||||||||||
SHARE CAPITAL | |||||||||||||||||
Proceeds from exercise of warrants | $ 11,500,000 | ||||||||||||||||
Number of units issued | shares | 3,883,036 | ||||||||||||||||
Issue price per unit | $ / shares | $ 2.973 | ||||||||||||||||
Underwriting commission | $ 1,215,274 | ||||||||||||||||
Fair value charge for compensation warrants | $ 162,467 | ||||||||||||||||
August 2020 Public offering | |||||||||||||||||
SHARE CAPITAL | |||||||||||||||||
Common Shares issued from public offerings (in shares) | shares | 4,532,772 | ||||||||||||||||
Share issue related cost | $ 109,918 | ||||||||||||||||
Issuance price (in USD per share) | $ / shares | $ 2.775 | ||||||||||||||||
Issue price per unit | $ / shares | $ 2.775 | ||||||||||||||||
Gross proceeds from issue of units | $ 12,600,000 | ||||||||||||||||
Number of common shares per warrant | shares | 1 | ||||||||||||||||
Gross proceeds from issuance of shares | $ 12,600,000 | ||||||||||||||||
Underwriting commission | 1,057,302 | ||||||||||||||||
Fair value charge for compensation warrants | $ 242,989 | ||||||||||||||||
December 2020 Public offering | |||||||||||||||||
SHARE CAPITAL | |||||||||||||||||
Common Shares issued from public offerings (in shares) | shares | 6,230,803 | ||||||||||||||||
Share issue related cost | $ 178,968 | ||||||||||||||||
Issuance price (in USD per share) | $ / shares | $ 0.9801 | ||||||||||||||||
Issue price per unit | $ / shares | $ 0.9801 | ||||||||||||||||
Gross proceeds from issue of units | $ 6,100,000 | ||||||||||||||||
Number of common shares per warrant | shares | 1 | ||||||||||||||||
Underwriting commission | $ 659,410 | ||||||||||||||||
Fair value charge for compensation warrants | 96,114 | ||||||||||||||||
2020 Compensation Warrants | |||||||||||||||||
SHARE CAPITAL | |||||||||||||||||
Share issue related cost | $ 200,386 | ||||||||||||||||
Number Of Broker Warrants Issued | shares | 405,002 | 294,630 | 252,397 | ||||||||||||||
Number Of Broker Warrants Issued | shares | 405,002 | 294,630 | 252,397 | ||||||||||||||
Series B Units | |||||||||||||||||
SHARE CAPITAL | |||||||||||||||||
Number of units issued | shares | 35,128,148 | ||||||||||||||||
Basis of exchange of warrants | shares | 1 | ||||||||||||||||
Series B Units | January 2020 Public offering | |||||||||||||||||
SHARE CAPITAL | |||||||||||||||||
Number of units issued | shares | 1,241,490 | ||||||||||||||||
Issue price per unit | $ / shares | $ 4.1350 | ||||||||||||||||
Series C Warrants | |||||||||||||||||
SHARE CAPITAL | |||||||||||||||||
Number of Warrants Initially Granted | shares | 10,273,972 | ||||||||||||||||
Proceeds from exercise of warrants | 1,186,027 | ||||||||||||||||
Derecognition of derivative financial liability | $ 5,638 | ||||||||||||||||
Number of Warrants Exercised | shares | 822,192 | 9,451,780 | |||||||||||||||
Number of broker warrants issued | shares | 10,273,972 | ||||||||||||||||
Series D Warrants | |||||||||||||||||
SHARE CAPITAL | |||||||||||||||||
Fair value of related derivative liability | $ 4,459,249 | ||||||||||||||||
Proceeds from exercise of warrants | $ 16,988 | ||||||||||||||||
Number of Warrants Exercised | shares | 1,698,841 | ||||||||||||||||
Series F Warrants | |||||||||||||||||
SHARE CAPITAL | |||||||||||||||||
Derecognition of derivative financial liability | $ 29,085,125 | ||||||||||||||||
Number of Warrants Exercised | shares | 22,431,506 | ||||||||||||||||
2017 Convertible Notes | |||||||||||||||||
SHARE CAPITAL | |||||||||||||||||
Common Shares issued from exercise of 2017 Notes (in share) | shares | 500,014 | ||||||||||||||||
Derecognition of derivative financial liability | $ 13,095,938 | $ 20,555,832 | |||||||||||||||
Aggregate principal amount of 2017 Notes converted | $ 1,016,000 | ||||||||||||||||
Amount of notes converted to shares | 11,197,000 | 17,640,000 | |||||||||||||||
2019 Convertible Notes | |||||||||||||||||
SHARE CAPITAL | |||||||||||||||||
Repayments of notes | $ 4,877,225 | $ 4,877,225 | |||||||||||||||
2019 Convertible Notes | Private placement | |||||||||||||||||
SHARE CAPITAL | |||||||||||||||||
Original issue discount on convertible notes | 15.00% | ||||||||||||||||
Principal amount | $ 11,500,000 | ||||||||||||||||
Gross proceeds from issue of convertible notes | $ 9,775,000 | ||||||||||||||||
Contributed Surplus | |||||||||||||||||
SHARE CAPITAL | |||||||||||||||||
Balance | $ 29,766,225 | 29,766,225 | 26,260,806 | 23,056,846 | |||||||||||||
Common Shares issued from exercise of stock options | (174) | (88,917) | |||||||||||||||
Share-based payments | 4,846,776 | 3,189,808 | 3,292,877 | ||||||||||||||
Issue of broker warrants | 315,611 | ||||||||||||||||
Common Shares issued from exercise of restricted share units | $ (151,938) | ||||||||||||||||
Balance (in shares) | shares | 35,045,056 | ||||||||||||||||
Balance | $ 35,045,056 | 29,766,225 | 26,260,806 | ||||||||||||||
Fair value charge for broker warrants issued | 315,611 | ||||||||||||||||
Contributed Surplus | Underwritten Public Offering | |||||||||||||||||
SHARE CAPITAL | |||||||||||||||||
Common Shares issued from public offerings | 315,611 | ||||||||||||||||
Contributed Surplus | January 2020 Public offering | |||||||||||||||||
SHARE CAPITAL | |||||||||||||||||
Issue of broker warrants | 82,597 | ||||||||||||||||
Fair value charge for broker warrants issued | 82,597 | ||||||||||||||||
Contributed Surplus | June 2020 Public offering | |||||||||||||||||
SHARE CAPITAL | |||||||||||||||||
Issue of broker warrants | 162,467 | ||||||||||||||||
Fair value charge for broker warrants issued | 162,467 | ||||||||||||||||
Series A Units | January 2020 Public offering | |||||||||||||||||
SHARE CAPITAL | |||||||||||||||||
Number of units issued | shares | 1,185,000 | ||||||||||||||||
Issue price per unit | $ / shares | $ 4.1351 | ||||||||||||||||
Series B Warrants | |||||||||||||||||
SHARE CAPITAL | |||||||||||||||||
Fair value of related derivative liability | 32,988,998 | ||||||||||||||||
Proceeds from exercise of warrants | 13,799,659 | ||||||||||||||||
Derecognition of derivative financial liability | $ 16,931 | $ 1,004,195 | |||||||||||||||
Number of Warrants Exercised | shares | 822,192 | 9,451,780 | |||||||||||||||
Series E Warrants | |||||||||||||||||
SHARE CAPITAL | |||||||||||||||||
Number Of Warrants Cancelled And Surrendered | shares | 22,431,506 | ||||||||||||||||
Series A Warrants | |||||||||||||||||
SHARE CAPITAL | |||||||||||||||||
Number of Warrants Exercised | shares | 822,192 | 9,451,780 | |||||||||||||||
Number Of Warrants Cancelled And Surrendered | shares | 35,950,340 | ||||||||||||||||
Series B Pre-funded warrants | Registered direct offering | |||||||||||||||||
SHARE CAPITAL | |||||||||||||||||
Common shares issued from exercise of Warrants (in shares) | shares | 1,241,490 | ||||||||||||||||
January 2020 Warrants | |||||||||||||||||
SHARE CAPITAL | |||||||||||||||||
Number of warrants cancelled and surrendered | shares | 2,176,490 | ||||||||||||||||
Basis of exchange of warrants | shares | 0.3092 | ||||||||||||||||
May 2020 Warrants | |||||||||||||||||
SHARE CAPITAL | |||||||||||||||||
Common Shares issued from exchange of Series A and Series E Warrants (xi) (in shares) | shares | 1,925,049 | 1,925,049 | 672,937 | ||||||||||||||
Warrants One [Member] | August 2020 Public offering | |||||||||||||||||
SHARE CAPITAL | |||||||||||||||||
Issue of broker warrants | 242,989 | ||||||||||||||||
Fair value charge for broker warrants issued | 242,989 | ||||||||||||||||
Warrants Two [Member] | August 2020 Public offering | |||||||||||||||||
SHARE CAPITAL | |||||||||||||||||
Issue of broker warrants | 96,114 | ||||||||||||||||
Fair value charge for broker warrants issued | $ 96,114 | ||||||||||||||||
Common shares | |||||||||||||||||
SHARE CAPITAL | |||||||||||||||||
Balance (in shares) | shares | 8,706,779 | 8,706,779 | 2,801,720 | 102,916 | |||||||||||||
Balance | $ 328,460,681 | $ 328,460,681 | $ 304,460,533 | $ 171,803,816 | |||||||||||||
Common shares issued from exercise of Warrants (in shares) | shares | 49 | ||||||||||||||||
Common Shares issued from exercise of stock options | $ 378 | $ 88,917 | |||||||||||||||
Common Shares issued from exchange of Series A and Series E Warrants (xi) | $ 234,173 | ||||||||||||||||
Common Shares issued from exchange of Series A and Series E Warrants (xi) (in shares) | shares | 49,624 | ||||||||||||||||
Common Shares issued from exercise of stock options (in shares) | 50 | ||||||||||||||||
Common Shares issued from exercise of restricted share units | $ 151,938 | ||||||||||||||||
Common Shares issued from exercise of restricted share units (in shares) | 50,986 | ||||||||||||||||
Common Shares issued from Warrant conversion | $ 234,173 | ||||||||||||||||
Balance (in shares) | shares | 28,928,916 | 8,706,779 | 2,801,720 | ||||||||||||||
Balance | $ 369,775,383 | $ 328,460,681 | $ 304,460,533 | ||||||||||||||
Issued for cash on exercise of options (in shares) | 50 | ||||||||||||||||
Common shares | Underwritten Public Offering | |||||||||||||||||
SHARE CAPITAL | |||||||||||||||||
Common Shares issued from public offerings (in shares) | shares | 2,222,222 | ||||||||||||||||
Share issue related cost | $ 611,972 | ||||||||||||||||
Issue of broker warrants | 315,611 | ||||||||||||||||
Gross proceeds from issuance of shares | 10,000,000 | ||||||||||||||||
Underwriting commission | $ 1,270,000 | ||||||||||||||||
Number Of Broker Warrants Issued | shares | 144,444 | ||||||||||||||||
Fair value charge for broker warrants issued | $ 315,611 | ||||||||||||||||
Common Shares issued from public offerings | $ 7,802,417 | ||||||||||||||||
Number Of Broker Warrants Issued | shares | 144,444 | ||||||||||||||||
Common shares | Private placement | |||||||||||||||||
SHARE CAPITAL | |||||||||||||||||
Common Shares issued from private placement (vii) | $ 1,664,662 | ||||||||||||||||
Common Shares issued from private placement (vii) (in shares) | shares | 334,951 | 334,951 | |||||||||||||||
Gross proceeds from issuance of shares | $ 1,664,662 | ||||||||||||||||
Share issue price per share | $ / shares | $ 5.15 | ||||||||||||||||
Common shares | January 2020 Public offering | |||||||||||||||||
SHARE CAPITAL | |||||||||||||||||
Issue of broker warrants | $ (82,597) | ||||||||||||||||
Fair value charge for broker warrants issued | $ (82,597) | ||||||||||||||||
Common shares | June 2020 Public offering | |||||||||||||||||
SHARE CAPITAL | |||||||||||||||||
Common Shares issued from public offerings (in shares) | shares | 3,883,036 | ||||||||||||||||
Share issue related cost | $ (1,215,274) | ||||||||||||||||
Issue of broker warrants | (162,467) | ||||||||||||||||
Fair value charge for broker warrants issued | (162,467) | ||||||||||||||||
Common Shares issued from public offerings | $ 9,591,099 | ||||||||||||||||
Common shares | August 2020 Public offering | |||||||||||||||||
SHARE CAPITAL | |||||||||||||||||
Common Shares issued from public offerings (in shares) | shares | 4,532,772 | ||||||||||||||||
Common Shares issued from exchange of Series A and Series E Warrants (xi) | $ 7,718,346 | ||||||||||||||||
Common Shares issued from exchange of Series A and Series E Warrants (xi) (in shares) | shares | 1,925,049 | ||||||||||||||||
Share issue related cost | $ (1,057,302) | ||||||||||||||||
Common Shares issued from Warrant conversion | 7,718,346 | ||||||||||||||||
Common Shares issued from public offerings | $ 12,238,484 | ||||||||||||||||
Common shares | Series B Units | |||||||||||||||||
SHARE CAPITAL | |||||||||||||||||
Common shares issued from exercise of Warrants (in shares) | shares | 223,304 | ||||||||||||||||
Number of warrants issued | shares | 1,315,281 | ||||||||||||||||
Common shares | Series C Warrants | |||||||||||||||||
SHARE CAPITAL | |||||||||||||||||
Common shares issued from exercise of Warrants (in shares) | shares | 822 | 822 | 9,452 | ||||||||||||||
Common shares issued from exercise of Warrants | $ 1,186,027 | $ 15,854,206 | |||||||||||||||
Common shares | Series D Warrants | |||||||||||||||||
SHARE CAPITAL | |||||||||||||||||
Common shares issued from exercise of Warrants (in shares) | shares | 1,699 | ||||||||||||||||
Common shares issued from exercise of Warrants | $ 1,021,183 | ||||||||||||||||
Number of Warrants Exercised | shares | 1,699 | ||||||||||||||||
Common shares | Series F Warrants | |||||||||||||||||
SHARE CAPITAL | |||||||||||||||||
Common shares issued from exercise of Warrants (in shares) | shares | 295,740 | ||||||||||||||||
Common shares issued from exercise of Warrants | $ 42,990,737 | ||||||||||||||||
Common shares | 2017 Convertible Notes | |||||||||||||||||
SHARE CAPITAL | |||||||||||||||||
Common shares issued from exercise of Warrants (in shares) | shares | 500,014 | 3,074,136 | 1,076,583 | ||||||||||||||
Common shares issued from exercise of Warrants | $ 1,293,093 | ||||||||||||||||
Common Shares issued from exercise of 2017 Notes (in share) | shares | 3,074,136 | ||||||||||||||||
Common Shares issued from exercise of 2017 Notes | $ 13,095,938 | $ 18,582,374 | |||||||||||||||
Common shares | Series A Units | |||||||||||||||||
SHARE CAPITAL | |||||||||||||||||
Common Shares issued from public offerings (in shares) | shares | 1,185,000 | ||||||||||||||||
Common Shares issued from public offerings | $ 4,111,950 | ||||||||||||||||
Common shares | Series A Units | December 2020 Public offering | |||||||||||||||||
SHARE CAPITAL | |||||||||||||||||
Common Shares issued from public offerings (in shares) | shares | 6,230,803 | ||||||||||||||||
Share issue related cost | $ (659,410) | ||||||||||||||||
Common Shares issued from public offerings | 5,333,567 | ||||||||||||||||
Common shares | Series A and Series B Units | January 2020 Public offering | |||||||||||||||||
SHARE CAPITAL | |||||||||||||||||
Share issue related cost | $ (462,880) | ||||||||||||||||
Common shares | Series B Warrants | |||||||||||||||||
SHARE CAPITAL | |||||||||||||||||
Common shares issued from exercise of Warrants (in shares) | shares | 223,304 | 1,315,281 | |||||||||||||||
Common shares issued from exercise of Warrants | $ 16,931 | $ 54,119,300 | |||||||||||||||
Common shares | Series E Warrants | |||||||||||||||||
SHARE CAPITAL | |||||||||||||||||
Number Of Warrants Cancelled And Surrendered | shares | 49,624 | ||||||||||||||||
Common shares | Series B Pre-funded warrants | January 2020 Public offering | |||||||||||||||||
SHARE CAPITAL | |||||||||||||||||
Common shares issued from exercise of Warrants (in shares) | shares | 1,241,490 | ||||||||||||||||
Common shares issued from exercise of Warrants | $ 3,885,746 | ||||||||||||||||
Common shares | January 2020 Warrants | |||||||||||||||||
SHARE CAPITAL | |||||||||||||||||
Common Shares issued from exchange of Series A and Series E Warrants (xi) | $ 969,133 | ||||||||||||||||
Common Shares issued from exchange of Series A and Series E Warrants (xi) (in shares) | shares | 672,937 | ||||||||||||||||
Common Shares issued from Warrant conversion | $ 969,133 | ||||||||||||||||
Common shares | Warrants One [Member] | August 2020 Public offering | |||||||||||||||||
SHARE CAPITAL | |||||||||||||||||
Issue of broker warrants | (242,989) | ||||||||||||||||
Fair value charge for broker warrants issued | (242,989) | ||||||||||||||||
Common shares | Warrants Two [Member] | August 2020 Public offering | |||||||||||||||||
SHARE CAPITAL | |||||||||||||||||
Issue of broker warrants | (96,114) | ||||||||||||||||
Fair value charge for broker warrants issued | $ (96,114) |
SHARE CAPITAL - Stock options (
SHARE CAPITAL - Stock options (Details) | Jan. 01, 2019Options$ / shares | Jun. 04, 2018 | Dec. 31, 2020Options$ / shares | Dec. 31, 2019Options$ / shares | Dec. 31, 2018Options$ / shares | Dec. 31, 2017Options$ / shares |
Stock options | ||||||
Options available for grant, as a percent to outstanding shares | 15.00% | |||||
Number of options outstanding | Options | 369,726 | 1,051,665 | 369,726 | 5,707 | ||
Number of options granted | Options | 2,495,100 | 697,150 | 366,053 | |||
Number of options exercised | Options | (50) | (49) | ||||
Number of options forfeited | Options | (468,238) | (13,344) | (1,178) | |||
Number of options expired | Options | (807) | (1,329) | (1,867) | |||
Number of options outstanding | Options | 3,077,148 | 1,051,665 | 369,726 | 5,707 | ||
Number of options exercisable | Options | 1,081,760 | 398,596 | 146,263 | |||
Weighted average exercise price of share options outstanding at beginning of the year | $ / shares | $ 76.78 | $ 20.63 | $ 76.78 | $ 3,849 | ||
Weighted average exercise price of share options granted | $ / shares | 2.48 | 4.27 | 30.31 | |||
Weighted average exercise price of share options exercised | $ / shares | 4.10 | 7.33 | ||||
Weighted average exercise price of share options forfeited | $ / shares | 23.10 | 58.64 | 1,712.35 | |||
Weighted average exercise price of share options expired | $ / shares | 3,498.28 | 4,997.06 | 1,813.70 | |||
Weighted average exercise price of share options outstanding at end of year | $ / shares | 4.10 | 20.63 | 76.78 | $ 3,849 | ||
Weighted average exercise price of share options exercisable | $ / shares | $ 6.01 | $ 35.69 | $ 127.04 | |||
Average remaining contractual life of outstanding share options (in years) | 7 years 2 months 9 days | 7 years 1 month 2 days | 7 years 10 months 17 days | 2 years 3 months 11 days | ||
Average remaining contractual life of exercisable share options (in years) | 6 years 11 months 5 days | 6 years 11 months 19 days | 7 years 7 months 13 days | |||
Stock options | ||||||
Stock options | ||||||
Maximum life of options | 10 years |
SHARE CAPITAL - Options outstan
SHARE CAPITAL - Options outstanding by exercise price (Details) | 12 Months Ended | |||
Dec. 31, 2020Options$ / shares | Dec. 31, 2019Options$ / shares | Dec. 31, 2018Options$ / shares | Dec. 31, 2017Options$ / shares | |
Options outstanding by exercise price | ||||
Weighted average exercise price | $ / shares | $ 4.10 | $ 20.63 | $ 76.78 | $ 3,849 |
Options outstanding | 3,077,148 | 1,051,665 | 369,726 | 5,707 |
Weighted average remaining term (yrs) | 7 years 2 months 9 days | 7 years 1 month 2 days | 7 years 10 months 17 days | 2 years 3 months 11 days |
Options exercisable | 1,081,760 | 398,596 | 146,263 | |
Weighted average remaining term (yrs) | 6 years 11 months 5 days | 6 years 11 months 19 days | 7 years 7 months 13 days | |
$4.10 | ||||
Options outstanding by exercise price | ||||
Weighted average exercise price | $ / shares | $ 4.10 | $ 4.10 | ||
Options outstanding | 481,150 | 561,050 | ||
Weighted average remaining term (yrs) | 6 years 2 months 23 days | 7 years 2 months 23 days | ||
Options exercisable | 251,550 | 140,450 | ||
Weighted average remaining term (yrs) | 6 years 2 months 23 days | 7 years 2 months 23 days | ||
$5.00 | ||||
Options outstanding by exercise price | ||||
Weighted average exercise price | $ / shares | $ 5 | |||
Options outstanding | 130,950 | |||
Weighted average remaining term (yrs) | 7 years 4 months 28 days | |||
Options exercisable | 32,738 | |||
Weighted average remaining term (yrs) | 7 years 4 months 28 days | |||
$8.80 | ||||
Options outstanding by exercise price | ||||
Weighted average exercise price | $ / shares | $ 8.80 | |||
Options outstanding | 88,800 | 89,900 | ||
Weighted average remaining term (yrs) | 6 years 11 months 1 day | 7 years 11 months 1 day | ||
Options exercisable | 59,242 | 29,976 | ||
Weighted average remaining term (yrs) | 6 years 11 months 1 day | 7 years 11 months 1 day | ||
$27.20 | ||||
Options outstanding by exercise price | ||||
Weighted average exercise price | $ / shares | $ 27.20 | |||
Options outstanding | 263,250 | 270,000 | ||
Weighted average remaining term (yrs) | 6 years 9 months | 7 years 9 months | ||
Options exercisable | 162,268 | 112,566 | ||
Weighted average remaining term (yrs) | 6 years 9 months | 7 years 9 months | ||
$27.30 - $9,276.86 | ||||
Options outstanding by exercise price | ||||
Options outstanding | 278,857 | 7,615 | ||
Weighted average remaining term (yrs) | 6 years 26 days | 4 years 8 months 16 days | ||
Options exercisable | 207,308 | 3,898 | ||
Weighted average remaining term (yrs) | 6 years 4 days | 3 years 8 months 9 days | ||
$27.30 - $9,276.86 | Minimum | ||||
Options outstanding by exercise price | ||||
Weighted average exercise price | $ / shares | $ 27.30 | |||
$27.30 - $9,276.86 | Maximum | ||||
Options outstanding by exercise price | ||||
Weighted average exercise price | $ / shares | $ 9,276.86 | |||
$2.11 | ||||
Options outstanding by exercise price | ||||
Weighted average exercise price | $ / shares | $ 2.11 | |||
Options outstanding | 486,875 | |||
Weighted average remaining term (yrs) | 7 years 8 months 19 days | |||
Options exercisable | 138,125 | |||
Weighted average remaining term (yrs) | 7 years 8 months 19 days | |||
$2.17 | ||||
Options outstanding by exercise price | ||||
Weighted average exercise price | $ / shares | $ 2.17 | |||
Options outstanding | 695,000 | |||
Weighted average remaining term (yrs) | 7 years 9 months 4 days | |||
Options exercisable | 173,750 | |||
Weighted average remaining term (yrs) | 7 years 9 months 4 days | |||
$2.27 | ||||
Options outstanding by exercise price | ||||
Weighted average exercise price | $ / shares | $ 2.27 | |||
Options outstanding | 1,500 | |||
Weighted average remaining term (yrs) | 7 years 7 months 10 days | |||
Options exercisable | 1,500 | |||
Weighted average remaining term (yrs) | 7 years 7 months 10 days | |||
$2.42 | ||||
Options outstanding by exercise price | ||||
Weighted average exercise price | $ / shares | $ 2.42 | |||
Options outstanding | 640,000 | |||
Weighted average remaining term (yrs) | 7 years 5 months 19 days | |||
Options exercisable | 176,032 | |||
$2.18 - $2.42 | Minimum | ||||
Options outstanding by exercise price | ||||
Weighted average exercise price | $ / shares | $ 2.27 | |||
$3.35 | ||||
Options outstanding by exercise price | ||||
Weighted average exercise price | $ / shares | $ 3.35 | |||
Options outstanding | 493,766 | |||
Weighted average remaining term (yrs) | 7 years 18 days | |||
Options exercisable | 133,495 | |||
Weighted average remaining term (yrs) | 7 years 18 days | |||
$4.11 - $3,878.39 | Minimum | ||||
Options outstanding by exercise price | ||||
Weighted average exercise price | $ / shares | $ 4.11 | |||
$4.11 - $3,878.39 | Maximum | ||||
Options outstanding by exercise price | ||||
Weighted average exercise price | $ / shares | $ 3,878.39 | |||
$60.00 | ||||
Options outstanding by exercise price | ||||
Weighted average exercise price | $ / shares | $ 60 | |||
Options outstanding | 1,055 | |||
Weighted average remaining term (yrs) | 7 years 3 months | |||
Weighted average remaining term (yrs) | 0 years | |||
$60.01 - $8,917.93 | ||||
Options outstanding by exercise price | ||||
Options outstanding | 8,771 | |||
Weighted average remaining term (yrs) | 4 years 4 months 21 days | |||
Options exercisable | 3,721 | |||
Weighted average remaining term (yrs) | 1 year 5 months 23 days | |||
$60.01 - $8,917.93 | Minimum | ||||
Options outstanding by exercise price | ||||
Weighted average exercise price | $ / shares | $ 60.01 | |||
$60.01 - $8,917.93 | Maximum | ||||
Options outstanding by exercise price | ||||
Weighted average exercise price | $ / shares | $ 8,917.93 |
SHARE CAPITAL - Fair value meas
SHARE CAPITAL - Fair value measurement assumptions (Details) | 12 Months Ended | ||
Dec. 31, 2020USD ($)Y$ / shares | Dec. 31, 2019USD ($)Y$ / shares | Dec. 31, 2018USD ($)Y$ / shares | |
SHARE CAPITAL | |||
Compensation expense | $ | $ 4,905,812 | $ 3,189,808 | $ 3,292,877 |
Weighted average fair value | $ | $ 1.99 | $ 3.60 | $ 16.40 |
Weighted average exercise price | $ / shares | $ 2.48 | $ 4.30 | $ 30.30 |
Weighted average share price at grant | $ / shares | $ 2.48 | $ 4.30 | $ 30.30 |
Dividend yield | 0.00% | 0.00% | 0.00% |
Volatility (as a percent) | 124.00% | 141.00% | 72.00% |
Risk-free interest rate (as a percent) | 0.94% | 1.51% | 2.24% |
Expected life (in years) | Y | 4 | 4 | 4 |
Forfeiture rate (as a percent) | 7.00% | 7.00% | 7.00% |
SHARE CAPITAL - Restricted Shar
SHARE CAPITAL - Restricted Share Unit Plan (Details) | Dec. 02, 2019 | Dec. 31, 2020USD ($)$ / shares | Dec. 31, 2019USD ($)$ / shares |
Restricted Share Unit Plan | |||
Restricted Share Unit Plan | |||
Acquisition percentage | 5.00% | ||
AGM period | 12 months | ||
Outstanding at the beginning of the period | 778,014 | 152,956 | |
Granted | 706,044 | 152,956 | |
Vested | (50,986) | ||
Cancelled/Forfeited (in shares) | (30,000) | ||
Outstanding at the end of the period | 778,014 | 152,956 | |
Weighted Average Grant Date Fair Value, Outstanding at the beginning of the period | $ / shares | $ 2.98 | ||
Weighted Average Grant Date Fair Value, Granted | $ / shares | 2.72 | $ 2.98 | |
Weighted Average Grant Date Fair Value, Vested | $ / shares | 0.85 | ||
Cancelled/Forfeited (in dollars per shares) | $ / shares | 2.74 | ||
Weighted Average Grant Date Fair Value, Outstanding at the end of the period | $ / shares | $ 2.76 | $ 2.98 | |
Restricted stock | |||
Restricted Share Unit Plan | |||
Share based compensation recognised | $ 973,219 | $ 22,848 | |
Total remaining unrecognized compensation cost | $ 1,136,595 |
SHARE CAPITAL - Share appreciat
SHARE CAPITAL - Share appreciation rights (Details) - Share Appreciation Rights | 12 Months Ended |
Dec. 31, 2020USD ($)$ / shares | |
Restricted Share Unit Plan | |
Fair value of the SAR | $ 295,179 |
Share based compensation recognised | $ 59,036 |
Number of SARs | |
Number of other equity instruments outstanding in share-based payment arrangement at beginning of period | 0 |
Granted | 1,811,768 |
Vested | 0 |
Number of other equity instruments outstanding in share-based payment arrangement at end of period | 1,811,768 |
Weighted Average Grant Date Fair Value, Outstanding at the beginning of the period | $ / shares | $ 0 |
Granted (in dollars per share) | $ / shares | 0.185 |
Vested (in dollars per share) | $ / shares | 0 |
Weighted Average Grant Date Fair Value, Outstanding at the end of the period | $ / shares | $ 0.185 |
SHARE CAPITAL - Warrants (Detai
SHARE CAPITAL - Warrants (Details) | Dec. 08, 2020USD ($)$ / sharesshares | Aug. 17, 2020USD ($)$ / sharesshares | Aug. 12, 2020USD ($)$ / sharesshares | Jul. 23, 2020USD ($)$ / sharesshares | Jun. 16, 2020USD ($)$ / sharesshares | May 28, 2020USD ($)$ / sharesshares | May 26, 2020$ / sharesshares | Jan. 06, 2020USD ($)$ / sharesshares | Jun. 25, 2019 | Mar. 15, 2019USD ($)$ / shares | Mar. 12, 2019USD ($)shares | Feb. 28, 2019USD ($)$ / shares | Sep. 18, 2018$ / sharesshares | Jan. 31, 2020USD ($)$ / shares | Mar. 31, 2019USD ($) | Feb. 28, 2019USD ($) | Dec. 31, 2020USD ($)shares | Dec. 31, 2019USD ($)shares | Dec. 31, 2018USD ($)shares | Sep. 30, 2020USD ($) | Jun. 30, 2020USD ($) | Jun. 30, 2019shares | Nov. 17, 2017shares |
Disclosure of warrants | |||||||||||||||||||||||
Number of warrants outstanding | 0 | ||||||||||||||||||||||
Reverse stock split conversion | 0.01 | 0.01 | |||||||||||||||||||||
Common Shares issued from Warrant conversion (in shares) | 49,624 | ||||||||||||||||||||||
Basis of exchange of warrants | 0.085 | 0.00085 | |||||||||||||||||||||
Fair value of warrants | $ | $ 190,303 | ||||||||||||||||||||||
Total exercise proceeds | $ | $ 4,973,035 | $ 1,200,400 | $ 13,816,648 | ||||||||||||||||||||
Other share issuance costs | $ | $ 278,482 | ||||||||||||||||||||||
Gross proceeds from issuance of shares | $ | $ 5,000,000 | $ 11,483,496 | |||||||||||||||||||||
2020 Settlement Warrants | |||||||||||||||||||||||
Disclosure of warrants | |||||||||||||||||||||||
Number of warrants outstanding | 500,000 | ||||||||||||||||||||||
Gross Proceeds from Issue of Units | $ | $ 11,500,000 | ||||||||||||||||||||||
Number of common share per unit | 1 | ||||||||||||||||||||||
Number of warrants per unit | 1 | ||||||||||||||||||||||
Basis of exchange of warrants | 1 | 1 | |||||||||||||||||||||
Warrants exercise price | $ / shares | $ 2.88 | $ 2.634 | |||||||||||||||||||||
Warrants exercisable term | 4 years | ||||||||||||||||||||||
Fair value of warrants | $ | $ 807,977 | $ 201,673 | $ 517,290 | $ 575,935 | |||||||||||||||||||
Warrants Issued | 500,000 | ||||||||||||||||||||||
Underwriting commission | $ | $ 1,215,274 | ||||||||||||||||||||||
Fair value charge for compensation warrants | $ | 162,467 | ||||||||||||||||||||||
Other share issuance costs | $ | $ 278,482 | ||||||||||||||||||||||
January 2020 Public offering | |||||||||||||||||||||||
Disclosure of warrants | |||||||||||||||||||||||
Number of warrants cancelled and surrendered | 2,176,490 | ||||||||||||||||||||||
Common Shares issued from Warrant conversion (in shares) | 672,937 | ||||||||||||||||||||||
Gross Proceeds from Issue of Units | $ | $ 10,000,000 | ||||||||||||||||||||||
Basis of exchange of warrants | 0.3092 | ||||||||||||||||||||||
Total exercise proceeds | $ | 10,000,000 | ||||||||||||||||||||||
Underwriting commission | $ | 462,880 | ||||||||||||||||||||||
Other share issuance costs | $ | $ 185,883 | ||||||||||||||||||||||
June 2020 Public offering | |||||||||||||||||||||||
Disclosure of warrants | |||||||||||||||||||||||
Number of units issued | 3,883,036 | ||||||||||||||||||||||
Issue price per unit | $ / shares | $ 2.973 | ||||||||||||||||||||||
Total exercise proceeds | $ | $ 11,500,000 | ||||||||||||||||||||||
Underwriting commission | $ | 1,215,274 | ||||||||||||||||||||||
Fair value charge for compensation warrants | $ | $ 162,467 | ||||||||||||||||||||||
August 2020 Public offering | |||||||||||||||||||||||
Disclosure of warrants | |||||||||||||||||||||||
Number of common shares per warrant | 1 | ||||||||||||||||||||||
Issue price per unit | $ / shares | $ 2.775 | ||||||||||||||||||||||
Gross Proceeds from Issue of Units | $ | $ 12,600,000 | ||||||||||||||||||||||
Warrants exercise price | $ / shares | $ 2.69 | ||||||||||||||||||||||
Fair value of warrants | $ | $ 3,511,115 | ||||||||||||||||||||||
Warrants Issued | 3,399,579 | ||||||||||||||||||||||
Warrants term | 5 years | ||||||||||||||||||||||
Underwriting commission | $ | $ 1,057,302 | ||||||||||||||||||||||
Fair value charge for compensation warrants | $ | 242,989 | ||||||||||||||||||||||
Other share issuance costs | $ | $ 109,918 | ||||||||||||||||||||||
Common Shares issued from public offerings (in shares) | 4,532,772 | ||||||||||||||||||||||
Issue price per share | $ / shares | $ 2.775 | ||||||||||||||||||||||
Class of Warrant or Right, Number of Warrants Issued With Each Share | 0.75 | ||||||||||||||||||||||
Gross proceeds from issuance of shares | $ | $ 12,600,000 | ||||||||||||||||||||||
Number of warrants issued along with each share | 0.75 | ||||||||||||||||||||||
RiskFreeInterestRateWarrantsIssued | 0.32% | ||||||||||||||||||||||
Expected life (in years) | 2 years | ||||||||||||||||||||||
Price of the stock on the grant date (in dollars per share) | $ / shares | $ 2.70 | ||||||||||||||||||||||
Expected volatility (as a percent) | 70.00% | ||||||||||||||||||||||
Expected dividend payments | $ | $ 0 | ||||||||||||||||||||||
December 2020 Public offering | |||||||||||||||||||||||
Disclosure of warrants | |||||||||||||||||||||||
Number of common shares per warrant | 1 | ||||||||||||||||||||||
Issue price per unit | $ / shares | $ 0.9801 | ||||||||||||||||||||||
Gross Proceeds from Issue of Units | $ | $ 6,100,000 | ||||||||||||||||||||||
Warrants exercise price | $ / shares | $ 0.86 | ||||||||||||||||||||||
Fair value of warrants | $ | $ 2,051,657 | ||||||||||||||||||||||
Warrants Issued | 6,230,803 | ||||||||||||||||||||||
Warrants term | 5 years | ||||||||||||||||||||||
Underwriting commission | $ | $ 659,410 | ||||||||||||||||||||||
Fair value charge for compensation warrants | $ | 96,114 | ||||||||||||||||||||||
Other share issuance costs | $ | $ 178,968 | ||||||||||||||||||||||
Common Shares issued from public offerings (in shares) | 6,230,803 | ||||||||||||||||||||||
Issue price per share | $ / shares | $ 0.9801 | ||||||||||||||||||||||
Class of Warrant or Right, Number of Warrants Issued With Each Share | 1 | ||||||||||||||||||||||
Number of warrants issued along with each share | 1 | ||||||||||||||||||||||
RiskFreeInterestRateWarrantsIssued | 0.33% | ||||||||||||||||||||||
Expected life (in years) | 2 years | ||||||||||||||||||||||
Price of the stock on the grant date (in dollars per share) | $ / shares | $ 0.86 | ||||||||||||||||||||||
Expected volatility (as a percent) | 70.00% | ||||||||||||||||||||||
Expected dividend payments | $ | $ 0 | ||||||||||||||||||||||
Underwritten Public Offering | |||||||||||||||||||||||
Disclosure of warrants | |||||||||||||||||||||||
Gross proceeds from issuance of shares | $ | $ 5,000,000 | $ 5,000,000 | |||||||||||||||||||||
RiskFreeInterestRateWarrantsIssued | 2.43% | 2.51% | |||||||||||||||||||||
Expected life (in years) | 3 years | 3 years | |||||||||||||||||||||
Price of the stock on the grant date (in dollars per share) | $ / shares | $ 4.50 | $ 4.50 | |||||||||||||||||||||
Expected volatility (as a percent) | 82.00% | 81.00% | |||||||||||||||||||||
Expected dividend payments | $ | $ 0 | $ 0 | |||||||||||||||||||||
2020 Broker Warrants | |||||||||||||||||||||||
Disclosure of warrants | |||||||||||||||||||||||
Warrants exercise price | $ / shares | $ 5.1689 | ||||||||||||||||||||||
Fair value of warrants | $ | $ 82,597 | ||||||||||||||||||||||
Warrants term | 3 years | ||||||||||||||||||||||
RiskFreeInterestRateWarrantsIssued | 1.60% | ||||||||||||||||||||||
Expected life (in years) | 1 year | ||||||||||||||||||||||
Price of the stock on the grant date (in dollars per share) | $ / shares | $ 3.47 | ||||||||||||||||||||||
Expected volatility (as a percent) | 70.00% | ||||||||||||||||||||||
Expected dividend payments | $ | $ 0 | ||||||||||||||||||||||
2020 Compensation Warrants | |||||||||||||||||||||||
Disclosure of warrants | |||||||||||||||||||||||
Warrants exercise price | $ / shares | $ 1.22 | $ 3.47 | $ 3.71 | ||||||||||||||||||||
Fair value of warrants | $ | $ 96,114 | $ 242,989 | $ 162,467 | ||||||||||||||||||||
Warrants term | 5 years | 5 years | 5 years | ||||||||||||||||||||
Other share issuance costs | $ | $ 200,386 | ||||||||||||||||||||||
RiskFreeInterestRateWarrantsIssued | 0.33% | 0.32% | 0.32% | ||||||||||||||||||||
Expected life (in years) | 2 years | 2 years | 2 years | ||||||||||||||||||||
Price of the stock on the grant date (in dollars per share) | $ / shares | $ 0.86 | $ 2.70 | $ 2.47 | ||||||||||||||||||||
Expected volatility (as a percent) | 70.00% | 70.00% | 70.00% | ||||||||||||||||||||
Expected dividend payments | $ | $ 0 | $ 0 | $ 0 | ||||||||||||||||||||
2020 Repayment Warrants | |||||||||||||||||||||||
Disclosure of warrants | |||||||||||||||||||||||
Warrants exercise price | $ / shares | $ 7.50 | $ 7.50 | |||||||||||||||||||||
Fair value of warrants | $ | $ 27,002 | $ 134,718 | |||||||||||||||||||||
Warrants term | 5 years | 5 years | |||||||||||||||||||||
RiskFreeInterestRateWarrantsIssued | 0.31% | 0.29% | |||||||||||||||||||||
Expected life (in years) | 2 years | 2 years | |||||||||||||||||||||
Price of the stock on the grant date (in dollars per share) | $ / shares | $ 2.13 | $ 2.54 | |||||||||||||||||||||
Expected volatility (as a percent) | 68.00% | 70.00% | |||||||||||||||||||||
Expected dividend payments | $ | $ 0 | $ 0 | |||||||||||||||||||||
Series A Units | |||||||||||||||||||||||
Disclosure of warrants | |||||||||||||||||||||||
Number of common share per unit | 1 | ||||||||||||||||||||||
Number of pre funded warrants per unit | 1 | ||||||||||||||||||||||
Number of warrants per unit | 1 | ||||||||||||||||||||||
Warrants exercise price | $ / shares | $ 4.1351 | ||||||||||||||||||||||
Warrants exercisable term | 4 years | ||||||||||||||||||||||
Fair value of warrants | $ | $ 6,145,620 | ||||||||||||||||||||||
Series A Units | January 2020 Public offering | |||||||||||||||||||||||
Disclosure of warrants | |||||||||||||||||||||||
Number of units issued | 1,185,000 | ||||||||||||||||||||||
Issue price per unit | $ / shares | $ 4.1351 | ||||||||||||||||||||||
Series B Units | |||||||||||||||||||||||
Disclosure of warrants | |||||||||||||||||||||||
Number of units issued | 35,128,148 | ||||||||||||||||||||||
Number of pre funded warrants per unit | 1 | ||||||||||||||||||||||
Number of warrants per unit | 1 | ||||||||||||||||||||||
Basis of exchange of warrants | 1 | ||||||||||||||||||||||
Warrants exercise price | $ / shares | $ 0.0001 | ||||||||||||||||||||||
RiskFreeInterestRateWarrantsIssued | 1.60% | ||||||||||||||||||||||
Expected life (in years) | 1 year | ||||||||||||||||||||||
Price of the stock on the grant date (in dollars per share) | $ / shares | $ 3.47 | ||||||||||||||||||||||
Expected volatility (as a percent) | 70.00% | ||||||||||||||||||||||
Series B Units | January 2020 Public offering | |||||||||||||||||||||||
Disclosure of warrants | |||||||||||||||||||||||
Number of units issued | 1,241,490 | ||||||||||||||||||||||
Issue price per unit | $ / shares | $ 4.1350 | ||||||||||||||||||||||
January 2020 Warrants | |||||||||||||||||||||||
Disclosure of warrants | |||||||||||||||||||||||
Number of warrants cancelled and surrendered | 2,176,490 | ||||||||||||||||||||||
Basis of exchange of warrants | 0.3092 | ||||||||||||||||||||||
Warrants outstanding | 250,000 | ||||||||||||||||||||||
2020 Warrants | |||||||||||||||||||||||
Disclosure of warrants | |||||||||||||||||||||||
Number of warrants exercised | 501,000 | (1,424,049) | |||||||||||||||||||||
Common Shares issued from Warrant conversion (in shares) | 4,526,732 | ||||||||||||||||||||||
Warrants exercise price | $ / shares | $ 2.6340 | ||||||||||||||||||||||
Warrants outstanding | 648,910 | ||||||||||||||||||||||
Warrants Issued | 2,573,959 | ||||||||||||||||||||||
Maximum percentage of total outstanding common shares that holder can own | 9.99% | ||||||||||||||||||||||
Warrants term | 4 years | ||||||||||||||||||||||
Total exercise proceeds | $ | $ 4,877,225 | ||||||||||||||||||||||
May 2020 Warrants | |||||||||||||||||||||||
Disclosure of warrants | |||||||||||||||||||||||
Common Shares issued from Warrant conversion (in shares) | 1,925,049 | 1,925,049 | 672,937 | ||||||||||||||||||||
Expected dividend payments | $ | $ 0 | ||||||||||||||||||||||
Series A Warrants | |||||||||||||||||||||||
Disclosure of warrants | |||||||||||||||||||||||
Number of warrants outstanding | 25,676,368 | ||||||||||||||||||||||
Number of warrants issued | 10,273,972 | ||||||||||||||||||||||
Number of warrants exchanged | (35,950,340) | ||||||||||||||||||||||
Loss on extinguishment of warrants | $ | $ 39,367 | ||||||||||||||||||||||
Series A Warrants | 2020 Settlement Warrants | |||||||||||||||||||||||
Disclosure of warrants | |||||||||||||||||||||||
Fair value of warrants | $ | $ 2,404,957 | ||||||||||||||||||||||
RiskFreeInterestRateWarrantsIssued | 0.32% | ||||||||||||||||||||||
Expected life (in years) | 2 years | ||||||||||||||||||||||
Price of the stock on the grant date (in dollars per share) | $ / shares | $ 2.47 | ||||||||||||||||||||||
Expected volatility (as a percent) | 70.00% | ||||||||||||||||||||||
Expected dividend payments | $ | $ 0 | ||||||||||||||||||||||
Series B Warrants | |||||||||||||||||||||||
Disclosure of warrants | |||||||||||||||||||||||
Number of warrants outstanding | 25,676,368 | ||||||||||||||||||||||
Number of warrants issued | 10,273,972 | ||||||||||||||||||||||
Number of warrants exercised | (35,950,340) | ||||||||||||||||||||||
Notional exercise price adjustment (in dollars per share) | $ / shares | $ 2.4334 | ||||||||||||||||||||||
Series C Warrants | |||||||||||||||||||||||
Disclosure of warrants | |||||||||||||||||||||||
Number of warrants outstanding | 10,273,972 | ||||||||||||||||||||||
Number of warrants exercised | (10,273,972) | ||||||||||||||||||||||
Series D Warrants | |||||||||||||||||||||||
Disclosure of warrants | |||||||||||||||||||||||
Number of warrants outstanding | 0 | 3,573,830 | |||||||||||||||||||||
Number of warrants exercised | (3,573,830) | ||||||||||||||||||||||
Series E Warrants | |||||||||||||||||||||||
Disclosure of warrants | |||||||||||||||||||||||
Number of warrants outstanding | 22,431,506 | ||||||||||||||||||||||
Number of warrants exchanged | (22,431,506) | ||||||||||||||||||||||
Notional exercise price adjustment (in dollars per share) | $ / shares | $ 2.4334 | ||||||||||||||||||||||
Loss on extinguishment of warrants | $ | $ 24,565 | ||||||||||||||||||||||
Series F Warrants | |||||||||||||||||||||||
Disclosure of warrants | |||||||||||||||||||||||
Number of warrants outstanding | 0 | 22,431,506 | |||||||||||||||||||||
Number of warrants exercised | (22,431,506) |
SHARE CAPITAL - Broker Warrants
SHARE CAPITAL - Broker Warrants (Details) - USD ($) | Dec. 08, 2020 | Aug. 17, 2020 | Aug. 12, 2020 | Jul. 23, 2020 | Jun. 16, 2020 | Mar. 15, 2019 | Feb. 28, 2019 | Jan. 31, 2020 | Mar. 31, 2019 | Feb. 28, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Broker Warrants | |||||||||||||
Proceeds from issuing shares | $ 5,000,000 | $ 11,483,496 | |||||||||||
Fair value of warrants | $ 190,303 | ||||||||||||
Underwritten Public Offering | |||||||||||||
Broker Warrants | |||||||||||||
Number of offerings completed | 2 | 2 | |||||||||||
Proceeds from issuing shares | $ 5,000,000 | $ 5,000,000 | |||||||||||
Number of broker warrants issued | 72,222 | 72,222 | 144,444 | 144,444 | |||||||||
Average risk-free interest rate (as a percent) | 2.43% | 2.51% | |||||||||||
Expected life (in years) | 3 years | 3 years | |||||||||||
Price of the stock on the grant date (in dollars per share) | $ 4.50 | $ 4.50 | |||||||||||
Expected volatility (as a percent) | 82.00% | 81.00% | |||||||||||
Expected dividend payments | $ 0 | $ 0 | |||||||||||
2020 Broker Warrants | |||||||||||||
Broker Warrants | |||||||||||||
Number of broker warrants issued | 157,721 | ||||||||||||
Warrants exercise price | $ 5.1689 | ||||||||||||
Warrants term | 3 years | ||||||||||||
Fair value of warrants | $ 82,597 | ||||||||||||
Average risk-free interest rate (as a percent) | 1.60% | ||||||||||||
Expected life (in years) | 1 year | ||||||||||||
Price of the stock on the grant date (in dollars per share) | $ 3.47 | ||||||||||||
Expected volatility (as a percent) | 70.00% | ||||||||||||
Expected dividend payments | $ 0 | ||||||||||||
2020 Compensation Warrants | |||||||||||||
Broker Warrants | |||||||||||||
Number of broker warrants issued | 405,002 | 294,630 | 252,397 | ||||||||||
Warrants exercise price | $ 1.22 | $ 3.47 | $ 3.71 | ||||||||||
Warrants term | 5 years | 5 years | 5 years | ||||||||||
Fair value of warrants | $ 96,114 | $ 242,989 | $ 162,467 | ||||||||||
Average risk-free interest rate (as a percent) | 0.33% | 0.32% | 0.32% | ||||||||||
Expected life (in years) | 2 years | 2 years | 2 years | ||||||||||
Price of the stock on the grant date (in dollars per share) | $ 0.86 | $ 2.70 | $ 2.47 | ||||||||||
Expected volatility (as a percent) | 70.00% | 70.00% | 70.00% | ||||||||||
Expected dividend payments | $ 0 | $ 0 | $ 0 | ||||||||||
2020 Repayment Warrants | |||||||||||||
Broker Warrants | |||||||||||||
Number of broker warrants issued | 168,518 | 481,778 | |||||||||||
Warrants exercise price | $ 7.50 | $ 7.50 | |||||||||||
Warrants term | 5 years | 5 years | |||||||||||
Fair value of warrants | $ 27,002 | $ 134,718 | |||||||||||
Average risk-free interest rate (as a percent) | 0.31% | 0.29% | |||||||||||
Expected life (in years) | 2 years | 2 years | |||||||||||
Price of the stock on the grant date (in dollars per share) | $ 2.13 | $ 2.54 | |||||||||||
Expected volatility (as a percent) | 68.00% | 70.00% | |||||||||||
Expected dividend payments | $ 0 | $ 0 |
SEGMENT INFORMATION (Details)
SEGMENT INFORMATION (Details) | 12 Months Ended | ||
Dec. 31, 2020USD ($)segment | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | |
Segment information by geographical area | |||
Number of business segments | segment | 1 | ||
Revenue | $ 1,957,362 | $ 2,092,032 | $ 1,749,133 |
Europe | |||
Segment information by geographical area | |||
Revenue | 1,810,362 | 1,863,032 | 1,600,633 |
Rest of the world | |||
Segment information by geographical area | |||
Revenue | $ 147,000 | $ 229,000 | $ 148,500 |
Major customer one | |||
Segment information by geographical area | |||
Percentage of entity's revenue | 13.00% | 12.00% | 28.00% |
Major customer two | |||
Segment information by geographical area | |||
Percentage of entity's revenue | 13.00% | 9.00% | 9.00% |
Major customer three | |||
Segment information by geographical area | |||
Percentage of entity's revenue | 9.00% | 8.00% | 9.00% |
EMPLOYEE BENEFITS EXPENSE (Deta
EMPLOYEE BENEFITS EXPENSE (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
EMPLOYEE BENEFITS EXPENSE | |||
Salaries and wages | $ 10,536,409 | $ 9,583,936 | $ 8,477,335 |
Pension plan and employment insurance | 506,025 | 458,276 | 418,303 |
Contribution to defined contribution pension plan | 198,342 | 182,449 | 170,358 |
Health benefits | 765,948 | 651,269 | 476,217 |
Cash-based employee expenses | 12,006,724 | 10,875,930 | 9,542,213 |
Employee termination expenses | 26,050 | 761,354 | |
Share-based payments | 4,905,812 | 3,189,808 | 3,292,877 |
Total employee expenses | $ 16,912,536 | $ 14,091,788 | $ 13,596,444 |
DEPRECIATION, SHARE-BASED PAY_3
DEPRECIATION, SHARE-BASED PAYMENTS, EMPLOYEE AND OTHER EXPENSES (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Expense by nature | |||
Selling expenses | $ 2,196,803 | $ 1,645,985 | $ 1,353,165 |
General and administrative expenses | 14,081,153 | 10,013,732 | 16,438,936 |
Product development and clinical trials expenses | 20,401,595 | 20,020,959 | 16,001,464 |
TOTAL EXPENSES | 36,679,551 | 31,680,676 | 33,793,565 |
Depreciation per Statements of Cash Flows | 768,101 | 641,621 | 384,126 |
Share-based payments per Statements of Cash Flows | 4,905,812 | 3,189,808 | 3,292,877 |
Cash-based employee expenses | 12,006,724 | 10,875,930 | 9,542,213 |
Depreciation | |||
Expense by nature | |||
General and administrative expenses | 280,949 | 182,202 | 60,206 |
Product development and clinical trials expenses | 487,152 | 459,419 | 323,920 |
Share-based payments | |||
Expense by nature | |||
Selling expenses | 320,886 | 188,930 | 170,416 |
General and administrative expenses | 2,820,369 | 1,748,660 | 2,147,832 |
Product development and clinical trials expenses | 1,764,557 | 1,252,218 | 974,629 |
Cash-based employee expenses | |||
Expense by nature | |||
Selling expenses | 891,784 | 526,769 | 352,837 |
General and administrative expenses | 3,149,313 | 2,725,814 | 2,498,005 |
Product development and clinical trials expenses | 7,965,627 | 7,623,347 | 6,691,371 |
Litigation expenses | |||
Expense by nature | |||
General and administrative expenses | 284,729 | 81,171 | 540,125 |
Employee termination expenses | |||
Expense by nature | |||
General and administrative expenses | 26,050 | 761,354 | |
Accretion on collaboration, license and settlement agreements provision | |||
Expense by nature | |||
General and administrative expenses | 308,938 | 693,047 | 5,129,758 |
Legal costs from financing activities | |||
Expense by nature | |||
General and administrative expenses | 3,617,485 | 1,089,245 | 1,608,260 |
Other expenses | |||
Expense by nature | |||
Selling expenses | 984,133 | 930,286 | 829,912 |
General and administrative expenses | 3,619,370 | 3,467,543 | 3,693,396 |
Product development and clinical trials expenses | $ 10,184,259 | $ 10,685,975 | $ 8,011,544 |
LOSS PER SHARE (Details)
LOSS PER SHARE (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
LOSS PER SHARE | |||
Weighted average number of Common Shares | 16,667,810 | 6,511,672 | 1,416,011 |
Loss for the year | $ (28,695,041) | $ (35,131,015) | $ (107,983,475) |
Basic and diluted loss per share | $ (1.72) | $ (5.40) | $ (76.26) |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Short-term employee benefits | |||
Employee salaries and bonuses | $ 2,348,709 | $ 2,235,926 | $ 2,112,605 |
Directors fees | 265,833 | 245,000 | 270,000 |
Social security and medical care costs | 80,949 | 77,284 | 63,529 |
Total short-term employee benefits | 2,695,491 | 2,558,210 | 2,446,134 |
Post-employment benefits | |||
Contributions to defined contribution pension plan | 36,114 | 32,435 | 34,162 |
Employee termination expense | 296,592 | ||
Key management expense | |||
Share-based payments | 1,726,690 | 1,555,857 | 2,270,023 |
Total key management remuneration | $ 4,458,295 | $ 4,146,502 | $ 5,046,911 |
CONTINGENT LIABILITIES AND PR_2
CONTINGENT LIABILITIES AND PROVISIONS (Details) - USD ($) | Feb. 20, 2019 | Jan. 22, 2019 | Aug. 03, 2018 | Dec. 31, 2020 |
Disclosure of contingent liabilities | ||||
Settlement Provision | $ 716,251 | |||
Contingent liability for patent infringement action | ||||
Disclosure of contingent liabilities | ||||
Damages award recognized | $ 0 | |||
Contingent liability for settlement agreement with Upenn | ||||
Disclosure of contingent liabilities | ||||
Settlement Provision | $ 470,349 | |||
Total fees | $ 2,650,000 | |||
Period for payment of fees in installments | 4 years | |||
Contingent liability for settlement agreement with Upenn | Minimum | ||||
Disclosure of contingent liabilities | ||||
Royalty payment (as a percent) | 1.00% | |||
Contingent liability for settlement agreement with Upenn | Maximum | ||||
Disclosure of contingent liabilities | ||||
Royalty payment (as a percent) | 1.50% | |||
Contingent liability for settlement agreement with Endovalve | ||||
Disclosure of contingent liabilities | ||||
Total fees | $ 3,000,000 | |||
Period for payment of fees in installments | 2 years 6 months | |||
Royalty payment (as a percent) | 1.30% |
GOVERNMENT ASSISTANCE (Details)
GOVERNMENT ASSISTANCE (Details) - USD ($) | Jul. 30, 2020 | Dec. 31, 2020 | Jul. 21, 2020 |
Disclosure of detailed information about borrowings [line items] | |||
Amount received as wage subsidy | $ 1,328,338 | ||
Paycheck Protection Program | |||
Disclosure of detailed information about borrowings [line items] | |||
Loan approved | $ 530,000 | ||
Canadian Emergency Wage Subsidy (CEWS) program | |||
Disclosure of detailed information about borrowings [line items] | |||
Amount received as wage subsidy | $ 765,715 |
SUBSEQUENT EVENTS (Details)
SUBSEQUENT EVENTS (Details) - February 2021 offering - USD ($) | Feb. 12, 2021 | Feb. 12, 2020 |
Disclosure of subsequent events | ||
Number of units issued | 36,000,000 | |
Issue price per unit | $ 2 | |
Number of common shares comprised in a unit | 1 | |
Warrants in units issued | 0.5 | |
Gross proceeds from issue of units | $ 72,000,000 | $ 72,000,000 |