Milestone Pharmaceuticals (MIST) 10-K/A 23 Oct 20 2019 FY Annual report (amended) Financial data

Document and Entity Information

Document and Entity Information - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Mar. 03, 2020	Jun. 30, 2019
Document and Entity Information
Document Type	10-K/A
Document Period End Date	Dec. 31, 2019
Entity Registrant Name	Milestone Pharmaceuticals Inc.
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	true
Entity Ex Transition Period	true
Entity Shell Company	false
Entity Public Float			$ 217.5
Entity Common Stock, Shares Outstanding		24,559,470
Entity Central Index Key	0001408443
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	FY
Amendment Flag	false

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Current assets
Cash and cash equivalents	$ 119,818	$ 85,947
Short-term investments		29
Research and development tax credits receivable	578	290
Prepaid expenses	1,845	1,398
Other receivables	258	387
Total current assets	122,499	88,051
Operating lease right-of-use assets (note 3)	524
Property and equipment (note 4)	405	30
Total assets	123,428	88,081
Current liabilities
Accounts payable and accrued liabilities (note 5)	7,997	4,477
Current portion of operating lease liabilities (note 3)	330
Income taxes payable		56
Total current liabilities	8,327	4,533
Operating lease liabilities (note 3)	184
Total liabilities	8,511	4,533
Convertible Preferred Shares (notes 1 and 6)
Convertible preferred shares		138,758
Shareholders' Equity (Deficit) (notes 1 and 7)
Common shares, no par value, unlimited shares authorized, 24,505,748 shares issued and outstanding as of December 31, 2019, 596,787 shares issued and outstanding as of December 31, 2018	226,245	2,039
Additional paid-in capital	3,805	2,655
Cumulative translation adjustment	(1,634)	(1,634)
Accumulated deficit	(113,499)	(58,270)
Total shareholders' equity (deficit)	114,917	(55,210)
Total liabilities, convertible preferred shares and shareholders' equity (deficit)	$ 123,428	$ 88,081

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Condensed Consolidated Balance Sheets
Common shares, par value (in dollars per share)	$ 0	$ 0
Common shares, Shares authorized (in shares)	Unlimited	Unlimited
Common shares, Shares issued (in shares)	24,505,748	596,787
Common shares, Shares outstanding (in shares)	24,505,748	596,787

Condensed Consolidated Statemen

Condensed Consolidated Statements of Loss and Comprehensive Loss - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Operating expenses
Research and development, net of tax credits (note 8)	$ 41,985	$ 16,849
General and administrative	7,004	3,052
Commercial	8,892	3,921
Loss from operations	(57,881)	(23,822)
Interest income, net of bank charges	2,596	711
Loss and comprehensive loss before income taxes	(55,285)	(23,111)
Income tax (recovery) expense (note 9)	(56)	74
Net loss and comprehensive loss for the period	$ (55,229)	$ (23,185)
Weighted average number of shares outstanding, basic and diluted (note 1)	15,784,750	319,202
Net loss per share, basic and diluted (note 8)	$ 3.50	$ 72.63

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Shareholders' Equity (Deficit) and Convertible Preferred Shares - USD ($) $ in Thousands	Common shares	Additional paid-in capital	Cumulative translation adjustment	Accumulated deficit	Class A1 preferred shares	Class A2 preferred shares	Class B preferred shares	Class C preferred shares	Class D1 preferred shares	Class D2 preferred shares	Total
Balance at the beginning of period at Dec. 31, 2017	$ 1,228	$ 2,372	$ (1,634)	$ (35,085)							$ 25,985
Balance at the beginning of period (in shares) at Dec. 31, 2017	239,990
Temporary equity, balance at the beginning of period at Dec. 31, 2017					$ 2,027	$ 12,643	$ 17,198	$ 27,236
Temporary equity, balance at the beginning of period (in shares) at Dec. 31, 2017					372,211	2,443,914	2,830,907	3,786,878
Increase (Decrease) in Stockholders' Equity and Temporary Equity [Roll Forward]
Net loss and comprehensive loss				(23,185)							(23,185)
Issuance of preferred shares, net of share issuance costs									$ 64,719	$ 14,935
Issuance of preferred shares, net of share issuance costs (in shares)									6,893,236	1,223,656
Exercise of stock options (note 7)	$ 811	(350)									461
Exercise of stock options (note 7) (in shares)	356,797
Share-based compensation (note 7)		633									633
Balance at the end of period at Dec. 31, 2018	$ 2,039	2,655	(1,634)	(58,270)							$ 83,548
Balance at the end of period (in shares) at Dec. 31, 2018	596,787										596,787
Temporary equity, balance at the end of period at Dec. 31, 2018					$ 2,027	$ 12,643	$ 17,198	$ 27,236	$ 64,719	$ 14,935	$ 138,758
Temporary equity, balance at the end of period (in shares) at Dec. 31, 2018					372,211	2,443,914	2,830,907	3,786,878	6,893,236	1,223,656
Increase (Decrease) in Stockholders' Equity and Temporary Equity [Roll Forward]
Net loss and comprehensive loss				(55,229)							(55,229)
Exercise of stock options (note 7)	$ 85	(41)									$ 44
Exercise of stock options (note 7) (in shares)	33,159										33,162
Share-based compensation (note 7)		1,191									$ 1,191
Initial public offering (note 7)	$ 85,363										85,363
Initial public offering (note 7) (in shares)	6,325,000
Preferred share conversion (note 7)	$ 138,758				$ (2,027)	$ (12,643)	$ (17,198)	$ (27,236)	$ (64,719)	$ (14,935)
Preferred share conversion (note 7) (in shares)	17,550,802				(372,211)	(2,443,914)	(2,830,907)	(3,786,878)	(6,893,236)	(1,223,656)
Balance at the end of period at Dec. 31, 2019	$ 226,245	$ 3,805	$ (1,634)	$ (113,499)							$ 114,917
Balance at the end of period (in shares) at Dec. 31, 2019	24,505,748										24,505,748

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Operating activities
Net loss for the year	$ (55,229)	$ (23,185)
Adjustments to reconcile net loss to net cash used in operating activities:
Amortization of property and equipment (note 4)	38	10
Share-based compensation expense (note 7)	1,191	633
Changes in operating assets and liabilities:
Other receivables	119	(271)
Research and development tax credits receivable	(288)	137
Prepaid expenses	(447)	(1,298)
Accounts payable and accrued liabilities	3,520	2,876
Income taxes payable (receivable)	(56)	52
Net cash used in operating activities	(51,152)	(21,046)
Investing activities
Acquisition of property and equipment	(413)	(5)
Acquisition of short-term investments	(35,000)	(3,029)
Redemption of short-term investments	35,029	19,032
Net cash (used in) provided by investing activities	(384)	15,998
Financing activities
Net proceeds from issuance of common shares in Initial Public Offering (note 7)	85,363
Issuance of common shares on exercise of share options (note 7)	44	461
Net cash provided by financing activities	85,407	80,115
Net increase in cash and cash equivalents during the period	33,871	75,067
Cash and cash equivalents - Beginning of year	85,947	10,880
Cash and cash equivalents - End of year	$ 119,818	85,947
Class D1 preferred shares
Financing activities
Issuance of preferred shares		64,719
Class D2 preferred shares
Financing activities
Issuance of preferred shares		$ 14,935

Organization and nature of oper

Organization and nature of operations	12 Months Ended
	Dec. 31, 2019
Organization and nature of operations
Organization and nature of operations	1 Organization and nature of operations Milestone Pharmaceuticals Inc. (Milestone or the Company) is a biopharmaceutical company incorporated under the Business Corporations Act of Québec. Milestone is focused on the development and commercialization of innovative cardiovascular medicines. Milestone’s lead product candidate, etripamil, is a novel, potent short‑acting calcium channel blocker that the Company designed and is developing as a rapid‑onset nasal spray to be self-administered by patients. The Company is developing etripamil to treat paroxysmal supraventricular tachycardia, atrial fibrillation, and other cardiovascular indications. Reverse Share Split On April 26, 2019, the Company’s Board of Directors approved an amendment to the Company’s articles of incorporation to effect a 1‑for‑5.3193 reverse share split of the Company’s common shares, convertible preferred shares and the share options of the Company. Accordingly, all common shares, convertible preferred shares, share options and per share amounts in the consolidated financial statements have been retroactively adjusted for all periods presented to give effect to the reverse share split. The reverse share split was effected on April 26, 2019.

Summary of significant accounti

Summary of significant accounting policies	12 Months Ended
	Dec. 31, 2019
Summary of significant accounting policies
Summary of significant accounting policies	2 Summary of significant accounting policies a) Basis of consolidation The consolidated financial statements include the accounts of the Company and Milestone Pharmaceuticals USA, Inc. Milestone Pharmaceuticals USA, Inc. began its operations on March 3, 2017. All intercompany transactions and balances have been eliminated. b) Basis of presentation and use of accounting estimates These consolidated financial statements of the Company have been presented in United States dollars (USD) and have been prepared in accordance with accounting principles generally accepted in the United States of America (U.S. GAAP), including the applicable rules and regulations of the Securities and Exchange Commission (SEC) regarding financial reporting. The preparation of consolidated financial statements in conformity with US GAAP requires the Company to make estimates and judgments that affect certain reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenue and expenses during the year. The Company bases its estimates and assumptions on current facts, historical experience and various other factors that it believes are reasonable under the circumstances, to determine the carrying values of assets and liabilities that are not readily apparent from other sources. Significant estimates and judgments include, but are not limited to, research and development tax credits recoverable, research and development expenses, and share based compensation. Accordingly, actual results may differ from those estimates and such differences may be material. c) Segment information The Company manages its operations as a single operating segment for the purposes of assessing performance and making operating decisions while focusing on the development and commercialization of innovative cardiovascular medicines. d) Cash and cash equivalents Cash and cash equivalents consist of cash and highly liquid investments that are readily convertible into cash with original maturities of three months or less at acquisition date. e) Short term investments Short term investments are recorded at fair value and are comprised of guaranteed investment certificates with a maturity greater than 90 days but less than one year and, as such, are classified as current assets. f) Concentration of credit risk Financial instruments which potentially subject the Company to concentration of credit risk consist primarily of cash and cash equivalents and investment securities classified as held to maturity. The Company maintains deposits in federal financial institutions. Management believes that the Company is not exposed to significant credit risk due to the financial position of the depository institutions in which those deposits are held. Additionally, the Company has adopted an investment policy that includes guidelines relative to credit quality, diversification of maturities and liquidity. g) Currency Risk The Company is exposed to currency risk due to financial instruments denominated in foreign currencies. The Company is exposed to the Canadian dollar currency risk and does not enter into arrangements to hedge its currency risk exposure. h) Property and equipment Property and equipment is stated at historical cost less accumulated amortization. Expenditures for maintenance and repairs are recorded to expense as incurred. The Company reviews its property and equipment whenever events or changes in circumstances indicate that the carrying value of certain assets might not be recoverable and recognizes an impairment loss when it is probable that an asset’s realizable value is less than the carrying value. To date, no such impairment losses have been recorded. Amortization is calculated using the straight‑line method over the following estimated useful lives of the assets: Computer hardware and software 3 years Office equipment 5 years Furniture and fixtures 5 years Leasehold improvements 3 years i) Leases Effective January 1, 2019, the Company adopted ASC 842, Leases (ASC 842), using the required modified retrospective approach and utilizing the effective date as its date of initial application. As a result, prior periods are presented in accordance with the previous guidance in ASC 840, Leases (“ASC 840”). At the inception of an arrangement, the Company determines whether the arrangement is or contains a lease based on the unique facts and circumstances present in the arrangement. Leases with a term greater than one year are recognized on the balance sheet as right-of-use assets and short-term and long-term lease liabilities, as applicable. The Company does not have financing leases. Operating lease liabilities and their corresponding right-of-use assets are initially recorded based on the present value of lease payments over the expected remaining lease term. Certain adjustments to the right-of-use asset may be required for items such as incentives received. The interest rate implicit in lease contracts is typically not readily determinable. As a result, the Company utilizes its incremental borrowing rate to discount lease payments, which reflects the fixed rate at which the Company could borrow on a collateralized basis the amount of the lease payments in the same currency, for a similar term, in a similar economic environment. Prospectively, the Company will adjust the right-of-use assets for straight-line rent expense or any incentives received and remeasure the lease liability at the net present value using the same incremental borrowing rate that was in effect as of the lease commencement or transition date. The Company has elected not to recognize leases with an original term of one year or less on the balance sheet. The Company typically only includes an initial lease term in its assessment of a lease arrangement. Options to renew a lease are not included in the Company’s assessment unless there is reasonable certainty that the Company will renew. j) Share issuance costs Share issuance costs applicable to the issuance of equity instruments are recorded as a reduction of the financing equity proceeds. k) Research and development and investment tax credits Research and development costs are charged against income in the period of expenditure. The Company’s research and development costs consist primarily of salaries and fees paid to contract research organizations (CROs) and to contract manufacturing organizations (CMOs). Clinical trial expenses include direct costs associated with CROs, direct CMO costs for the formulation and packaging of clinical trial material, as well as investigator and patient related costs at sites at which the Company’s trials are being conducted. Direct costs associated with the Company’s CROs and CMOs are generally payable on a time and materials basis, or when milestones are achieved. The invoicing from clinical trial sites can lag several months. The Company records expenses for its clinical trial activities performed by third parties based upon estimates of the percentage of work completed of the total work over the life of the individual study in accordance with agreements established with CROs and clinical trial sites. The Company determines the estimates through discussions with internal clinical personnel, CROs and CMOs as to the progress or stage of completion of trials or services and the agreed upon fee to be paid for such services based on facts and circumstances known to the Company as of each consolidated balance sheet date. The actual costs and timing of clinical trials are highly uncertain, subject of risks and may change depending upon a number of factors, including the Company’s clinical development plan. If the actual timing of the performance of services of the level of effort varies from the estimate, the Company will adjust the accrual accordingly. The Company recognizes the benefit of Canadian research and development tax credits as a reduction of research and development costs for fully refundable investment tax credits and as a reduction of income taxes for investment tax credits that can only be claimed against income taxes payable when there is reasonable assurance that the claim will be recovered. l) Income taxes The provision for income taxes is computed using the liability method. Under this method, deferred tax assets and liabilities are determined based on differences between financial reporting and tax bases of assets and liabilities. Deferred tax assets and liabilities are measured using enacted tax rates and laws that will be in effect when the differences are expected to reverse. A valuation allowance is recorded to reduce the carrying amount of deferred income tax assets when it is more likely than not that these assets will not be realized. Tax benefits related to tax positions not deemed to meet the “more‑likely‑than‑not” threshold are not permitted to be recognized in the consolidated financial statements. m) Foreign currency translation and transactions The functional currency of the Company is the US dollar. Accordingly, transactions denominated in currencies other than the functional currency are measured and recorded in the functional currency at the exchange rate in effect on the date of the transactions. At each consolidated balance sheet date, monetary assets and liabilities denominated in currencies other than the functional currency are remeasured using the exchange rate in effect at that date. Non‑monetary assets and liabilities and revenue and expense items denominated in foreign currencies are translated into the functional currency using the exchange rate prevailing at the dates of the respective transactions. Any gains or losses arising on remeasurement are included in the consolidated statement of operations. n) Share based compensation The Company has a share based compensation plan which is described in detail in note 7 and records all share‑based payments, including grants of employee share options, at their fair values. The fair value of share options granted to employees and non‑employees is estimated at the date of grant using the Black‑Scholes option pricing model. The Company recognizes share based compensation expense over the requisite service period of the individual grants, which equals the vesting period, using the straight‑line method. Forfeitures, if any, are recorded as they occur. Any consideration paid by employees on exercising share options and the corresponding portion previously credited to contributed surplus are credited to share capital. The Black‑Scholes option pricing model used by the Company to calculate option values was developed to estimate fair value. The Company approved an employee share purchase plan in April 2019, which became effective on May 8, 2019 and is described in detail in note 7. The plan provides a means by which eligible employees of the company and certain designated companies may be given an opportunity to purchase common shares. the plan permits the company to grant a series of purchase rights to eligible employees under an employee stock purchase plan. o) Redeemable convertible preferred shares The Company classifies shares that are redeemable at a fixed or determinable price on a fixed or determinable date outside of permanent equity. The redeemable convertible preferred shares are classified outside of shareholders’ deficit because the shares contain certain redemption features that are not solely within the control of the Company. The Company records convertible preferred shares at fair value upon issuance, net of any issuance costs or discounts. p) Recent accounting pronouncement not yet adopted In August 2018, the FASB issued Accounting Standard Update No. 2018-13, Changes to Disclosure Requirements for Fair Value Measurements (Topic 820) (ASU 2018-13), which improved the effectiveness of disclosure requirements for recurring and nonrecurring fair value measurements. The standard removes, modifies, and adds certain disclosure requirements. The adoption of this standard is not expected to have a material impact on the Company’s consolidated financial statements and related disclosures. In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments ("ASU 2016-13"). ASU 2016-13 significantly changes the impairment model for most financial assets and certain other instruments. ASU 2016-13 will require immediate recognition of estimated credit losses expected to occur over the remaining life of many financial assets, which will generally result in earlier recognition of allowances for credit losses on loans and other financial instruments. ASU 2016-13 is effective for the Company's fiscal year beginning December 1, 2020 and subsequent interim periods. The adoption of this standard is not expected to have a material impact on the Company’s consolidated financial statements and related disclosures. q) Recently adopted accounting pronouncements On January 1, 2019, we adopted Accounting Standards Update No. 2016-02, Leases (Topic 842) (ASU 2016-02) using the modified retrospective transition approach by applying the new standard to all leases existing at the date of initial application. Results and disclosure requirements for reporting periods beginning after January 1, 2019 are presented under Topic 842, while prior period amounts have not been adjusted and continue to be reported in accordance with our historical accounting under Topic 840. Adoption of this standard resulted in the recording of an operating lease right-of-use asset and corresponding operating lease liabilities of $0.3 million, for its headquarters located in Montréal (Québec), Canada. The Company’s consolidated balance sheet beginning on January 1, 2019 are presented under the new guidance, while prior year amount was not adjusted and continue to be reported in accordance with previous guidance. This lease consisted of a 36-month period lease commencing December 1, 2017 and ending on November 30, 2020 for its office located in Montréal (Québec), Canada. It includes the possibility for the lessee to renew the term of the lease for a further 36-month period beginning December 1, 2020 and ending November 30, 2023. Operating lease right-of-use asset and operating lease liabilities are recognized upon the adoption date based on the present value of lease payments over the remaining lease term. The company was not reasonably certain of renewing the lease following the initial term and recognized the right-of-use asset and operating lease liabilities over the remaining lease term. The Company did not record an operating lease right-of-use asset and corresponding lease liability for leases with an initial term of twelve months or less and recognizes lease expense for these leases as incurred over the lease term. Upon adoption date, the Company had only one operating lease with a remaining term of less than 12 months for its offices located in Charlotte, NC, which had a termination date of July 31, 2019, and for which the Company was not reasonably certain of renewing the lease. The lease was extended for two months and terminated in September 2019. The Company does not have a public credit rating and carries no debt. As such, several factors were considered in the determination of its incremental borrowing rate used in determining the present value of lease payments. The Company examined the Bloomberg credit ratings for similar companies; assumed equivalency between the Canadian and US markets for collateralized debt; factored in the cumulative dividend rate on convertible preferred shares; and used short-term rates based on the remaining lease term of 23 months upon the standard adoption on January 1, 2019 and on 36 months for the new lease agreement entered into in September 2019. This resulted in an incremental borrowing rate of 8%. Lease expenses are recognized on a straight-line basis over the lease term, which is accomplished by increasing the amortization of the right-of-use asset as interest expense on the lease liability declines over the lease term. The Company’s lease arrangements do not have lease and non-lease components which are accounted for separately. The adoption of the accounting standard did not materially impact the Company’s consolidated statement of operations or its consolidated statement of cash flow for the twelve months ended December 31, 2019.

Leases

Leases	12 Months Ended
	Dec. 31, 2019
Leases
Leases	3 Leases On June 3, 2019, the Company entered into a new lease arrangement for a three-year term for its office located in Charlotte, NC. The Company recognized the operating lease right-of-use asset and operating lease liabilities at the lease commencement date on September 10, 2019. This resulted in an incremental borrowing rate of 8%. Lease expenses are recognized on a straight-line basis over the lease term, which is accomplished by increasing the amortization of the right-of-use asset as interest expense on the lease liability declines over the lease term. The company was not reasonably certain of renewing the lease following the initial term and recognized the right-of-use asset and operating lease liabilities over the 36-month period ending September 30, 2022. The Company's two operating leases right-of-use assets are as follows as at December 31, 2019: Right-of-use adoption date of January 1, 2019 $ 321 New operating lease right-of-use asset 401 Amortization of right-of-use asset during the year ending December 31, 2019 (198) $ 524 Operating lease expenses of $277 are included in general and administrative operating expenses in the consolidated statement loss and comprehensive loss, and within operating activities in the statement of cash flows for the twelve-month period ended December 31, 2019, and are comprised of two operating lease right-of-use assets and one operating lease of less than 12 months. The following table summarizes the future minimum lease payments of right-of-use assets operating lease as at December 31, 2019: January 1, 2020 to December 31, 2020 $ 354 January 1, 2021 to December 31, 2021 117 January 1, 2022 to December 31, 2022 80 551 Less interest (37) $ 514 As at December 31, 2018 in accordance with ASC 840, the Company had a lease commitment for its headquarters located in Montréal (Québec), Canada, expiring on November 30, 2020 with an option to renew for an additional three years and a commitment for its office located in Charlotte, North Carolina, which had a termination date of July 31, 2019. The minimum lease payments as at December 31, 2018 were as follows: Lease Lease operating base rent Total lease expenses expenses commitment 2019 $ 86 $ 130 $ 216 2020 79 85 164 $ 165 $ 215 $ 380 Total rental expense under operating leases for the year ended December 31, 2018 was $232.

Property and equipment

Property and equipment	12 Months Ended
	Dec. 31, 2019
Property and equipment
Property and equipment	4 Property and equipment Property and equipment consist of the following at December 31: 2019 2018 Computer hardware and software $ 22 $ 9 Office equipment 406 28 Leasehold improvements 26 4 Total $ 454 $ 41 Less accumulated depreciation and amortization (49) (11) Property and equipment, net $ 405 $ 30 During the year ended December 31, 2019 and December 31, 2018, the Company did not record any write off. For the year ended December 31, 2019, amortization expense was $38 (in 2018, amortization expense was $10) and was included in research and development expense.

Accounts payable and accrued li

Accounts payable and accrued liabilities	12 Months Ended
	Dec. 31, 2019
Accounts payable and accrued liabilities
Accounts payable and accrued liabilities	5 Accounts payable and accrued liabilities Accounts payable and accrued liabilities comprised the following as of December 31: 2019 2018 Trade accounts payable $ 4,376 $ 2,603 Accrued research and development liabilities 1,513 1,012 Other accrued liabilities 331 164 Accrued compensation and benefits payable 1,777 698 $ 7,997 $ 4,477

Convertible preferred shares

Convertible preferred shares	12 Months Ended
	Dec. 31, 2019
Convertible preferred shares
Convertible preferred shares	6 Convertible preferred shares In May 2019, the Company completed its initial public offering ("IPO"). Upon the closing of the IPO, all outstanding redeemable convertible preferred shares of Class A1, A2, B, C, D1 and D2 (collectively known as “Convertible Preferred Shares”) converted into 17,550,802 common shares. Prior to converting to common shares in May 2019, the Company’s convertible preferred shares allowed the holders to redeem their shares upon a change in control in the Company. As a result, the Company classified its Convertible Preferred Shares as mezzanine equity. The Company charged specific incremental issuance costs incurred in the offering of Convertible Preferred Shares against the gross proceeds of the Convertible Preferred Shares. Prior to May 2019, an authorized unlimited number of: - Class A1 preferred shares, voting based on the number of common shares into which they could have been converted, annual non‑cumulative dividend of 8% in preference to the holders of common shares calculated on their issue price. In addition, the Class A1 preferred shares were eligible to their pro rata shares, on an as‑converted basis, to any dividend paid on common shares. The Class A1 preferred shares are subject to a weighted average antidilution adjustment in the event of a common share issuance at a price per share lower than C$5.3193 - Class A2 preferred shares, voting based on the number of common shares into which they could have been converted, preferential non‑cumulative dividend of 8% pari passu with the Class B preferred shares and in preference to the holders of Class A1 preferred shares calculated on their issue price. In addition, the Class A2 preferred shares were eligible to their pro rata shares, on an as‑converted basis, to any dividend paid on common shares. The Class A2 preferred shares were subject to a weighted average antidilution adjustment in the event of a common share issuance at a price per share lower than C$5.3193 - Class B preferred shares, voting based on the number of common shares into which they could have been converted, preferential non‑cumulative dividend of 8% pari passu with the Class A2 preferred shares and in preference to the holders of Class A1 preferred shares calculated on their issue price. In addition, the Class B preferred shares were eligible to their pro rata shares, on an as‑converted basis, to any dividend paid on common shares. The Class B preferred shares were subject to a weighted average antidilution adjustment in the event of a common share issuance at a price per share lower than $6.1172 - Class C preferred shares, voting based on the number of common shares into which they could have been converted, preferential non‑cumulative dividend of 8% to the Class B and A2 preferred shares and in preference to the holders of Class A1 preferred shares calculated on their issue price. In addition, the Class B preferred shares were eligible to their pro rata shares, on an as‑converted basis, to any dividend paid on common shares. The Class C preferred shares were subject to a weighted average antidilution adjustment in the event of a common share issuance at a price per share lower than $7.2619 - Class D1 preferred shares, voting based on the number of common shares into which they could have been converted, preferential non -cumulative dividend of 8% pari passu with the Class D2 preferred shares, and in preference to the holders of the Class C, Class B, Class A2 and Class A1 preferred shares calculated on their issue price. In addition, the Class D1 preferred shares were eligible to their pro rata shares, on an as‑converted basis, to any non‑cumulative dividend paid on common shares. The Class D1 preferred shares were subject to a weighted average antidilution adjustment in the event of a common share issuance at a price per share lower than $9.4295. - Class D2 preferred shares, voting based on the number of common shares into which they could have been converted, preferential non‑cumulative dividend of 8% pari passu with the Class D1 preferred shares, and in preference to the holders of the Class C, Class B, Class A2 and Class A1 preferred shares calculated on their issue price. In addition, the Class D2 preferred shares were eligible to their pro rata shares, on an as‑converted basis, to any non‑cumulative dividend paid on common shares. The Class D2 preferred shares were subject to a weighted average antidilution adjustment in the event of a common share issuance at a price per share lower than $12.2583. The Company early adopted the guidance on down round features from ASU 2017‑11 with respect to the antidilution adjustments for the Class A1, Class A2, Class B, Class C, Class D1 and D2 preferred shares. The Class A1, A2, B, C, D1 and D2 preferred shares would have automatically converted into common shares at the applicable conversion price upon (i) closing of a qualified initial public offering at a price per share based on a pre‑money valuation of the Company of at least $250,000 and resulting in gross proceeds of at least $60,000, whereby the shares would be listed on one or more Recognized Stock Exchanges; and (ii) the election to convert by a majority of the Class A1, A2, B, C, D1 and D2 preferred shares. The conversion rate of Class A1, A2, B, C, D1 and D2 preferred shares into common shares at the time of conversion was 1:1. The holders of the Company’s Convertible Preferred Shares were entitled to receive non‑cumulative dividends at the rate of 8% of the purchase price per annum in preference to any dividends to the holders of the common shares, payable as and if when declared by the Board of Directors. The holders of the Convertible Preferred Shares also were entitled to participate pro rata in any dividends paid to the holders of the common shares on an as‑converted basis. The Board of Directors had not declared any dividends as of May 2019 when the Preferred Shares were converted and therefore no dividends were paid. Upon the liquidation of the Company, the holders of Convertible Preferred Stock were entitled to receive, in preference to the holders of the common stock and in order of priority, an amount equal to $12.4472 per share for Series D2 Convertible Preferred Stock, $9.5747 per share for Series D1 Convertible Preferred Stock, $7.9258 per share for Series C Convertible Preferred Stock, $7.3406 per share for Series B Convertible Preferred Stock, $7.713 per share for Series A2 Convertible Preferred Stock and $8.83 per share for Series A1 Convertible Preferred Stock (the “Liquidation Preference”). Following payment in full to the holders of preferred shares of all amounts distributable to them, the remaining assets of the Company available for distribution to holders of the Company’s share capital would have been distributed on a pro rata basis among (i) the holders of any preferred shares convertible into common shares of the Company on an as if converted basis; and (ii) the holders of the common shares. The holders of 70% of Class A1, A2, B, C, D1 and D2 preferred shares, voting as a single class, could have required that the Company redeem the preferred shared at the earlier of a sale or an exclusive license of all or substantially all intellectual property of the Company or all of the assets and the fifth anniversary of the closing date of the Class D preferred shares. The redemption price would have been the higher of the liquidation preference or the fair market value of such preferred shares. Class A1 preferred shares could have been only redeemed once Class A2, B, C, D1 and D2 preferred shares were fully redeemed. For the year ended December 31, 2018, the Company issued the following Convertible Preferred Shares: a) On October 17, 2018, the Company issued 6,893,236 Class D1 preferred shares for gross proceeds of $65,000. The costs related with this share issuance were $281. b) On October 17, 2018, the Company issued 1,223,656 Class D2 preferred shares for gross proceeds of $15,000. The costs related with this share issuance were $65. No convertible preferred shares were issued for the year ended December 31, 2019. All preferred shares were converted to common share upon closing of the IPO in May 2019.

Shareholders' equity (deficit)

Shareholders' equity (deficit)	12 Months Ended
	Dec. 31, 2019
Shareholders' equity (deficit)
Shareholders' equity (deficit)	7 Shareholders’ equity (deficit) Authorized share capital An unlimited number of common shares, voting and participating, without par value. In May 2019, the Company completed its initial public offering ("IPO"), whereby the Company issued in total 6,325,000 common shares at a public offering price of $15.00 per share (note 1) . The gross proceeds received by the Company from the offering were $94.9 million. Upon the closing of the IPO, all outstanding shares of Class A1, A2, B, C, D1 and D2 preferred shares converted into 17,550,802 common shares. The Company's board of directors adopted and its shareholders approved the 2019 Employee Share Purchase Plan ("ESPP") in April 2019, which became effective on May 8, 2019. The number of common shares initially reserved for issuance under the ESPP was 278,734 common shares. The number of shares reserved for issuance will automatically increase on January 1 of each calendar year, beginning on January 1, 2020 through January 1, 2029, by the lesser of (1) 1% of the total number of shares of the Company's share capital outstanding on the last day of the calendar month before the date of the automatic increase and (2) 487,837 shares; provided that before the date of any such increase, the Company's board of directors may determine that such increase will be less than the amount set forth in clauses (1) and (2). As of December 31, 2019, no common shares have been issued under the ESPP. The first offering period has not yet been decided by the Company's board of directors. During the year ended December 31, 2019, the Company issued a total of 33,162 common shares (in 2018, 356,797) for a total cash consideration of $44 (in 2018, $461) pursuant to the exercise of 33,162 stock options (in 2018, 356,797) at an average exercise price of $1.326 per option (in 2018, $1.287 per option). As a result, an amount of $41 (in 2018, $350) previously included in additional paid‑in capital related to the exercised options has been credited to share capital and deducted from additional paid‑in capital. Additional paid‑in capital 2019 2018 Opening balance $ 2,655 $ 2,372 Share-based compensation expense 1,191 633 Exercise of stock options (41) (350) Closing balance $ 3,805 $ 2,655 Share‑based compensation The Company's board of directors adopted and its shareholders approved the 2019 Equity Incentive Plan (the "2019 Plan") in April 2019, which became effective on May 8, 2019 in connection with the IPO. Initially, the maximum number of the Company's common shares that may be issued under the 2019 Plan was 4,710,564 shares, which is the sum of (1) 1,923,501 new shares, plus (2) the number of shares (not to exceed 2,787,063 shares) (i) that remained available for the issuance of awards under the Company's Stock Option Plan (the "2011 Plan") at the time the 2019 Plan became effective, and (ii) any shares subject to outstanding options or other share awards that were granted under the 2011 Plan that terminate, expire or are otherwise forfeited, reacquired or withheld. In addition, the number of the Company's common shares reserved for issuance under the 2019 Plan will automatically increase on January 1 of each calendar year, starting on January 1, 2020 through January 1, 2029, in an amount equal to 4% of the total number of the Company's capital shares outstanding on the last day of the calendar month before the date of each automatic increase, or a lesser number of shares determined by the Company's board of directors. As of May 8, 2019, the Company's 2011 Plan was terminated and no further option grants will be made under the 2011 Plan. On October 15, 2018, the Company amended for a third time and restated the share option plan (the 2011 Plan) whereby options to purchase common shares of the Company’s shares may be granted to directors, officers, employees, consultants and members of the scientific advisory board. The 2011 Plan is administered by the Board of Directors. The Board of Directors determines the number of options to be granted, the vesting period and the exercise price of new options. It is the Company’s policy to establish the exercise price at an amount that approximates the fair value of the underlying shares on the date of grant as determined by the Board of Directors. Under the 2011 Plan, unless otherwise decided by the Board of Directors, options vest and are exercisable as follows: 25% are exercisable from the first anniversary of grant date and 2.0833% become available at the end of each month after the first anniversary of grant date. The 2011 Plan was terminated as of May 8, 2019 and a total of 2,364,526 options are outstanding at December 31, 2019. As of December 31, 2019, there were 2,316,933 options available for awards under the 2019 Plan, of which 287,138 options were granted and 66,998 forfeited, leaving 2,096,793 available for future grant. The outstanding and exercisable options at December 31 were as follows: 2019 2018 Number Weighted Number Weighted of shares average of shares average exercise exercise 2019 Plan 2011 Plan Total price 2011 Plan price Outstanding at beginning of period — 2,295,045 2,295,045 $ 1.771 968,782 $ 1.133 Granted - 2011 Plan — 116,742 116,742 9.417 1,695,258 2.037 Granted - 2019 Plan 287,138 — 287,138 19.948 — — Exercised - 2011 — (33,162) (33,162) 1.326 (356,797) 1.287 Forfeited - 2011 — (14,099) (14,099) 2.660 (12,198) 1.096 Forfeited - 2019 (66,998) — (66,998) 17.224 — — Outstanding - 12/31/2019 220,140 2,364,526 2,584,666 $ 3.755 2,295,045 $ 1.771 Outstanding - 12/31/2019 - Weighted average exercise price $ 20.777 $ 2.151 Exercisable at end of period 1,165 1,212,226 1,213,391 $ 1.652 588,817 $ 1.314 Exercisable at end of period - Weighted average exercise price $ 17.780 $ 1.637 As of December 31, 2019, the weighted average remaining contractual life was 7.8 years (for 2018, 8.6 years). The weighted average remaining contractual life was 7.0 years for vested options (for 2018, 6.6 years). For the year ended December 31, 2019, 14,099 options and 66,998 options were forfeited under the 2011 Plan and the 2019 Plan, respectively, amounting to a total of 81,097 options forfeited in 2019 (for 2018, 12,198). Options granted are valued using the Black‑Scholes option pricing model. Amortization of the fair value of the options over vesting years has been expensed and credited to additional paid‑in capital in shareholders’ deficit. The weighted average fair values of options granted in 2019 was $6.649 for the 2011 Plan and $13.912 for the 2019 plan (in 2018 for the 2011 Plan, $1.463). Share‑based compensation expense recognized for the year ended December 31, 2019 was $1,191 (in 2018, $633). As of December 31, 2019, there was $6,464 (for 2018, $2,402) of total unrecognized compensation cost, related to non‑vested share options, which is expected to be recognized over a remaining weighted average vesting period of 2.6 years (for 2018, 3.1 years). 2019 2018 Number Weighted Number Weighted of options average of options average 2019 Plan 2011 Plan Total fair value 2011 Plan fair value Non-vested share options at beginning of period — 1,706,303 1,706,303 $ 1.346 451,113 $ 1.027 Granted - 2011 Plan — 116,742 116,742 6.649 1,695,258 1.463 Granted - 2019 Plan 287,138 — 287,138 13.912 — — Vested, outstanding — (656,646) (656,646) 1.333 (427,870) 1.479 Vested, outstanding (1,165) — (1,165) 12.160 — — Forfeited - 2011 — (14,099) (14,099) 1.906 (12,198) 1.064 Forfeited - 2019 (66,998) — (66,998) 12.221 — — Non-vested share options at end of period 218,975 1,152,300 1,371,275 $ 3.889 1,706,303 $ 1.346 Non-vested share options at end of period - Weighted average fair value $ 14.439 $ 1.884 The following table summarizes information with respect to share options outstanding as of December 31, 2019: Options outstanding Options exercisable Weighted Weighted average Weighted average Weighted remaining average remaining average Number contractual exercise Number contractual exercise Exercise price of options life (years) price of options life (years) price C$0.96 235,497 3.3 $ 0.914 235,497 3.3 $ 0.914 $1.12 261,913 6.3 $ 1.117 207,319 6.2 $ 1.117 $1.54 956,688 7.9 $ 1.543 429,175 7.9 $ 1.543 $1.91 82,772 8.6 $ 1.915 40,122 9 $ 2 $2.66 710,914 8.9 $ 2.660 300,113 8.9 $ 2.660 $9.42 116,742 9.2 $ 9.415 — — $ — $15.87 23,620 9.6 $ 15.870 — — $ — $17.78 42,000 9.9 $ 17.780 1,165 9.9 $ 17.780 $19.14 3,760 9.8 $ 19.140 — — $ — $21.28 3,760 9.7 $ 21.280 — — $ — $22.45 147,000 9.7 $ 22.450 — — $ — Total 2,584,666 7.8 $ 3.755 1,213,391 7.0 $ 1.652 The intrinsic value of all outstanding options as of December 31, 2019 was $32.7 million, based on the fair value of our common shares of $16.01 per share at December 31, 2019, of which approximately $17.4 million related to vested options and approximately $15.5 million related to unvested options. The fair value of share‑based payment transaction is measured using Black‑Scholes valuation model. This model also requires assumptions, including expected option life, volatility, risk‑free interest rate and dividend yield, which greatly affect the calculated values. The fair value of options granted was estimated using the Black‑Scholes option pricing model, resulting in the following weighted average assumptions for the options granted for the years ended December 31, 2019 and 2018: 2019 2018 Exercise price $ 16.900 $ 2.037 Share price $ 16.900 $ 2.037 Volatility 80 % 82 % Risk-free interest rate 1.92 % 2.84 % Expected life 6.21 years 6.25 years Dividend % % Expected volatility is determined using comparable companies for which the information is publicly available. The risk‑free interest rate is determined based on the US sovereign rates benchmark in effect at the time of grant with a remaining term equal to the expected life of the option. Expected option life is determined based on the simplified method as the Company does not have sufficient historical exercise data to provide a reasonable basis upon which to estimate expected term. The simplified method is an average of the contractual term of the options and its ordinary vesting period. Dividend yield is based on the share option’s exercise price and expected annual dividend rate at the time of grant. Share‑based payment awards with performance targets attainable after the requisite service period are treated as performance conditions that affect vesting. No compensation expense is recorded related to an award for which the transfer to the employee is contingent on the attainment of a performance target until it becomes probable that the performance target will be met. The Company recognized share‑based compensation expense as follows at December 31, 2019 and 2018: 2019 2018 Administration $ 574 $ 209 Research and development 495 371 Commercial activities 122 53 $ 1,191 $ 633

Net loss per share

Net loss per share	12 Months Ended
	Dec. 31, 2019
Net loss per share
Net loss per share	8 Net loss per share Basic and diluted net loss per common share is determined by dividing net loss applicable to common shareholders by the weighted average number of common shares during the period. The outstanding convertible preferred shares and share‑based compensation have been excluded from the calculation because their effects would be anti‑dilutive. Therefore the weighted average number of shares used to calculate both basic and diluted loss per share are the same. The following potentially dilutive securities have been excluded from the computation of diluted weighted average shares outstanding as of December 31, 2019 and 2018, as they would be anti‑dilutive: 2019 2018 Redeemable convertible preferred shares — 17,550,802 Share options and unvested restricted share awards 2,584,666 2,295,045 2,584,666 19,845,847 Amounts in the table above reflect the common share equivalents of the noted instruments.

Income taxes

Income taxes	12 Months Ended
	Dec. 31, 2019
Income taxes
Income taxes	9 Income taxes A reconciliation between tax expense and the product of accounting income multiplied by the basic income tax rate for the years ended December 31, 2019 and 2018 is as follows: 2019 2018 Loss before income taxes $ (55,285) $ (23,111) Basic income tax rate 26.30 % 26.67 % Computed income tax recovery (14,542) (6,164) Effect on income tax rate resulting from Accounting charges not deductible for tax purposes 23 12 Non‑deductible share‑based compensation 317 169 Share issue costs (2,739) Unrecorded potential tax benefits of current period losses and other tax assets 16,829 6,183 Non‑refundable investment tax credit used (earned) in the year — (145) Valuation allowance for prior year adjustment 77 — Other (21) 19 Income tax expense (recovery)/expense reported in the consolidated statements of loss and comprehensive loss $ (56) $ 74 The Company has incurred Canadian federal and provincial net operating losses (NOLs) from inception. As of December 31, 2019, the Company has NOL carry‑forwards of approximately $86,591 and $86,085, respectively, for Canadian federal and Québec purposes, available to reduce future taxable income, which expire beginning in 2027 through 2039. The Company also has scientific research and experimental development expenditures of approximately $9,377 and $11,127, respectively, for Canadian federal and Québec income tax purposes, which have not been deducted. These expenditures are available to reduce future taxable income and have an unlimited carry‑forward period. Research and development tax credits and expenditures are subject to verification by the tax authorities, and, accordingly, these amounts may vary. The Company has incurred NOLs for U.S. tax purposes. As of December 31, 2019, the Company has carry-forwards of approximately $12,439 related to U.S. NOLs that may be carried forward indefinitely and are available to reduce future taxable income. Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. The net deferred tax assets have not been recognized in these financial statements because the criteria for recognition of these assets were not met. The Company’s deferred tax assets consist of the following for the years ended December 31, 2019 and 2018: 2019 2018 Net operating loss carry‑forwards 25,965 12,209 Tax basis of property and equipment in excess of carrying values 103 93 Federal SR&ED investment tax credits 535 273 Taxation of federal SR&ED investment tax credits (142) (72) Research and development expenditures 2,686 1,791 Financing costs 2,103 138 Others 16 21 Total gross deferred tax assets 31,266 14,453 Valuation allowance (31,266) (14,453) Net deferred tax assets — — The Company files income tax returns in Canada and in the United States. The Company is subject to Canada Revenue Agency and Revenu Québec examination for fiscal years 2014 to 2019 due to unexpired statute of limitation periods and is subject to US Federal and state income tax examination for fiscal years 2017 to 2019.

Government assistance

Government assistance	12 Months Ended
	Dec. 31, 2019
Government assistance
Government assistance	10 Government assistance The Company incurred research and development expenditures that are eligible for investment tax credits. The investment tax credits recorded are based on management’s estimates of amounts expected to be recovered and are subject to audit by the taxation authorities. These amounts (expressed in thousands of US dollars) have been recorded as a reduction of research and development expenditures for an amount of $392 for the year ended December 31, 2019 (for 2018, $257).

Commitments

Commitments	12 Months Ended
	Dec. 31, 2019
Commitments
Commitments	11 Commitments In the normal course of business, the Company enter into contracts with clinical research organizations, drug manufacturers and other vendors for preclinical and clinical research studies, research and development supplies and other services and products for operating purposes. These contracts generally provide for termination on notice, and therefore are cancellable contracts. Therefore, as at December 31, 2019 there are no contractual commitments.

Currency risk

Currency risk	12 Months Ended
	Dec. 31, 2019
Currency risk
Currency risk	12 Currency risk The Company is exposed to the financial risk related to the fluctuation of foreign exchange rates and the degree of volatility of those rates. The foreign currency risk is limited to the portion of the Company’s business transactions denominated in currency other than US dollars. The following table provides an indication of the Company’s exposure to the Canadian dollar, which is expressed in US dollars as of December 31: 2019 2018 Cash $ 149 $ 246 Short‑term investments — 29 Accounts payable and accrued liabilities 1,680 538 Net financial position exposure $ 1,531 $ 263 The Company does not enter into arrangements to hedge its currency risk exposure.

Fair value of financial instrum

Fair value of financial instruments	12 Months Ended
	Dec. 31, 2019
Fair value of financial instruments
Fair value of financial instruments	13 Fair value of financial instruments Pursuant to the accounting guidance for fair value measurement and its subsequent updates, fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (i.e. the exit price) in an orderly transaction between market participants at the measurement date. The accounting guidance establishes a hierarchy for inputs used in measuring fair value that minimizes the use of unobservable inputs by requiring the use of observable market data when available. Observable inputs are inputs that market participants would use in pricing the asset or liability based on active market data. Unobservable inputs are inputs that reflect the assumptions market participants would use in pricing the asset or liability based on the best information available in the circumstances. The fair value hierarchy is broken down into the three input levels summarized below: Level 1 — Valuations are based on quoted prices in active markets for identical assets or liabilities and readily accessible by the Company at the reporting date. Level 2 — Valuations based on inputs other than the quoted prices in active markets that are observable either directly or indirectly in active markets. Level 3 — Valuations based on unobservable inputs in which there is little or no market data, which requires the Company to develop its own assumptions. The Company’s fair value hierarchy for all its financial assets (by major security type measured at fair value on a recurring basis) for the year ending December 31, 2019 is nil, as there was no financial instruments measured at fair value on a recurring basis as of that date. For the year ended December 31, 2018, the Company held a Guaranteed investment certificates at Level 1 with a fair value of $29.

Summary of significant accoun_2

Summary of significant accounting policies (Policies)	12 Months Ended
	Dec. 31, 2019
Summary of significant accounting policies
Basis of consolidation	a) Basis of consolidation The consolidated financial statements include the accounts of the Company and Milestone Pharmaceuticals USA, Inc. Milestone Pharmaceuticals USA, Inc. began its operations on March 3, 2017. All intercompany transactions and balances have been eliminated.
Basis of presentation and use of accounting estimates	b) Basis of presentation and use of accounting estimates These consolidated financial statements of the Company have been presented in United States dollars (USD) and have been prepared in accordance with accounting principles generally accepted in the United States of America (U.S. GAAP), including the applicable rules and regulations of the Securities and Exchange Commission (SEC) regarding financial reporting. The preparation of consolidated financial statements in conformity with US GAAP requires the Company to make estimates and judgments that affect certain reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenue and expenses during the year. The Company bases its estimates and assumptions on current facts, historical experience and various other factors that it believes are reasonable under the circumstances, to determine the carrying values of assets and liabilities that are not readily apparent from other sources. Significant estimates and judgments include, but are not limited to, research and development tax credits recoverable, research and development expenses, and share based compensation. Accordingly, actual results may differ from those estimates and such differences may be material.
Segment information	c) Segment information The Company manages its operations as a single operating segment for the purposes of assessing performance and making operating decisions while focusing on the development and commercialization of innovative cardiovascular medicines.
Cash and cash equivalents	d) Cash and cash equivalents Cash and cash equivalents consist of cash and highly liquid investments that are readily convertible into cash with original maturities of three months or less at acquisition date.
Short term investments	e) Short term investments Short term investments are recorded at fair value and are comprised of guaranteed investment certificates with a maturity greater than 90 days but less than one year and, as such, are classified as current assets.
Concentration of credit risk	f) Concentration of credit risk Financial instruments which potentially subject the Company to concentration of credit risk consist primarily of cash and cash equivalents and investment securities classified as held to maturity. The Company maintains deposits in federal financial institutions. Management believes that the Company is not exposed to significant credit risk due to the financial position of the depository institutions in which those deposits are held. Additionally, the Company has adopted an investment policy that includes guidelines relative to credit quality, diversification of maturities and liquidity.
Currency Risk	g) Currency Risk The Company is exposed to currency risk due to financial instruments denominated in foreign currencies. The Company is exposed to the Canadian dollar currency risk and does not enter into arrangements to hedge its currency risk exposure.
Property and equipment	h) Property and equipment Property and equipment is stated at historical cost less accumulated amortization. Expenditures for maintenance and repairs are recorded to expense as incurred. The Company reviews its property and equipment whenever events or changes in circumstances indicate that the carrying value of certain assets might not be recoverable and recognizes an impairment loss when it is probable that an asset’s realizable value is less than the carrying value. To date, no such impairment losses have been recorded. Amortization is calculated using the straight‑line method over the following estimated useful lives of the assets: Computer hardware and software 3 years Office equipment 5 years Furniture and fixtures 5 years Leasehold improvements 3 years
Leases	i) Leases Effective January 1, 2019, the Company adopted ASC 842, Leases (ASC 842), using the required modified retrospective approach and utilizing the effective date as its date of initial application. As a result, prior periods are presented in accordance with the previous guidance in ASC 840, Leases (“ASC 840”). At the inception of an arrangement, the Company determines whether the arrangement is or contains a lease based on the unique facts and circumstances present in the arrangement. Leases with a term greater than one year are recognized on the balance sheet as right-of-use assets and short-term and long-term lease liabilities, as applicable. The Company does not have financing leases. Operating lease liabilities and their corresponding right-of-use assets are initially recorded based on the present value of lease payments over the expected remaining lease term. Certain adjustments to the right-of-use asset may be required for items such as incentives received. The interest rate implicit in lease contracts is typically not readily determinable. As a result, the Company utilizes its incremental borrowing rate to discount lease payments, which reflects the fixed rate at which the Company could borrow on a collateralized basis the amount of the lease payments in the same currency, for a similar term, in a similar economic environment. Prospectively, the Company will adjust the right-of-use assets for straight-line rent expense or any incentives received and remeasure the lease liability at the net present value using the same incremental borrowing rate that was in effect as of the lease commencement or transition date. The Company has elected not to recognize leases with an original term of one year or less on the balance sheet. The Company typically only includes an initial lease term in its assessment of a lease arrangement. Options to renew a lease are not included in the Company’s assessment unless there is reasonable certainty that the Company will renew.
Share issuance costs	j) Share issuance costs Share issuance costs applicable to the issuance of equity instruments are recorded as a reduction of the financing equity proceeds.
Research and development and investment tax credits	k) Research and development and investment tax credits Research and development costs are charged against income in the period of expenditure. The Company’s research and development costs consist primarily of salaries and fees paid to contract research organizations (CROs) and to contract manufacturing organizations (CMOs). Clinical trial expenses include direct costs associated with CROs, direct CMO costs for the formulation and packaging of clinical trial material, as well as investigator and patient related costs at sites at which the Company’s trials are being conducted. Direct costs associated with the Company’s CROs and CMOs are generally payable on a time and materials basis, or when milestones are achieved. The invoicing from clinical trial sites can lag several months. The Company records expenses for its clinical trial activities performed by third parties based upon estimates of the percentage of work completed of the total work over the life of the individual study in accordance with agreements established with CROs and clinical trial sites. The Company determines the estimates through discussions with internal clinical personnel, CROs and CMOs as to the progress or stage of completion of trials or services and the agreed upon fee to be paid for such services based on facts and circumstances known to the Company as of each consolidated balance sheet date. The actual costs and timing of clinical trials are highly uncertain, subject of risks and may change depending upon a number of factors, including the Company’s clinical development plan. If the actual timing of the performance of services of the level of effort varies from the estimate, the Company will adjust the accrual accordingly. The Company recognizes the benefit of Canadian research and development tax credits as a reduction of research and development costs for fully refundable investment tax credits and as a reduction of income taxes for investment tax credits that can only be claimed against income taxes payable when there is reasonable assurance that the claim will be recovered.
Income taxes	l) Income taxes The provision for income taxes is computed using the liability method. Under this method, deferred tax assets and liabilities are determined based on differences between financial reporting and tax bases of assets and liabilities. Deferred tax assets and liabilities are measured using enacted tax rates and laws that will be in effect when the differences are expected to reverse. A valuation allowance is recorded to reduce the carrying amount of deferred income tax assets when it is more likely than not that these assets will not be realized. Tax benefits related to tax positions not deemed to meet the “more‑likely‑than‑not” threshold are not permitted to be recognized in the consolidated financial statements.
Foreign currency translation and transactions	m) Foreign currency translation and transactions The functional currency of the Company is the US dollar. Accordingly, transactions denominated in currencies other than the functional currency are measured and recorded in the functional currency at the exchange rate in effect on the date of the transactions. At each consolidated balance sheet date, monetary assets and liabilities denominated in currencies other than the functional currency are remeasured using the exchange rate in effect at that date. Non‑monetary assets and liabilities and revenue and expense items denominated in foreign currencies are translated into the functional currency using the exchange rate prevailing at the dates of the respective transactions. Any gains or losses arising on remeasurement are included in the consolidated statement of operations.
Share based compensation	n) Share based compensation The Company has a share based compensation plan which is described in detail in note 7 and records all share‑based payments, including grants of employee share options, at their fair values. The fair value of share options granted to employees and non‑employees is estimated at the date of grant using the Black‑Scholes option pricing model. The Company recognizes share based compensation expense over the requisite service period of the individual grants, which equals the vesting period, using the straight‑line method. Forfeitures, if any, are recorded as they occur. Any consideration paid by employees on exercising share options and the corresponding portion previously credited to contributed surplus are credited to share capital. The Black‑Scholes option pricing model used by the Company to calculate option values was developed to estimate fair value. The Company approved an employee share purchase plan in April 2019, which became effective on May 8, 2019 and is described in detail in note 7. The plan provides a means by which eligible employees of the company and certain designated companies may be given an opportunity to purchase common shares. the plan permits the company to grant a series of purchase rights to eligible employees under an employee stock purchase plan.
Redeemable convertible preferred shares	o) Redeemable convertible preferred shares The Company classifies shares that are redeemable at a fixed or determinable price on a fixed or determinable date outside of permanent equity. The redeemable convertible preferred shares are classified outside of shareholders’ deficit because the shares contain certain redemption features that are not solely within the control of the Company. The Company records convertible preferred shares at fair value upon issuance, net of any issuance costs or discounts.
Recent accounting pronouncement not yet adopted	p) Recent accounting pronouncement not yet adopted In August 2018, the FASB issued Accounting Standard Update No. 2018-13, Changes to Disclosure Requirements for Fair Value Measurements (Topic 820) (ASU 2018-13), which improved the effectiveness of disclosure requirements for recurring and nonrecurring fair value measurements. The standard removes, modifies, and adds certain disclosure requirements. The adoption of this standard is not expected to have a material impact on the Company’s consolidated financial statements and related disclosures. In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments ("ASU 2016-13"). ASU 2016-13 significantly changes the impairment model for most financial assets and certain other instruments. ASU 2016-13 will require immediate recognition of estimated credit losses expected to occur over the remaining life of many financial assets, which will generally result in earlier recognition of allowances for credit losses on loans and other financial instruments. ASU 2016-13 is effective for the Company's fiscal year beginning December 1, 2020 and subsequent interim periods. The adoption of this standard is not expected to have a material impact on the Company’s consolidated financial statements and related disclosures.
Recently adopted accounting pronouncements	q) Recently adopted accounting pronouncements On January 1, 2019, we adopted Accounting Standards Update No. 2016-02, Leases (Topic 842) (ASU 2016-02) using the modified retrospective transition approach by applying the new standard to all leases existing at the date of initial application. Results and disclosure requirements for reporting periods beginning after January 1, 2019 are presented under Topic 842, while prior period amounts have not been adjusted and continue to be reported in accordance with our historical accounting under Topic 840. Adoption of this standard resulted in the recording of an operating lease right-of-use asset and corresponding operating lease liabilities of $0.3 million, for its headquarters located in Montréal (Québec), Canada. The Company’s consolidated balance sheet beginning on January 1, 2019 are presented under the new guidance, while prior year amount was not adjusted and continue to be reported in accordance with previous guidance. This lease consisted of a 36-month period lease commencing December 1, 2017 and ending on November 30, 2020 for its office located in Montréal (Québec), Canada. It includes the possibility for the lessee to renew the term of the lease for a further 36-month period beginning December 1, 2020 and ending November 30, 2023. Operating lease right-of-use asset and operating lease liabilities are recognized upon the adoption date based on the present value of lease payments over the remaining lease term. The company was not reasonably certain of renewing the lease following the initial term and recognized the right-of-use asset and operating lease liabilities over the remaining lease term. The Company did not record an operating lease right-of-use asset and corresponding lease liability for leases with an initial term of twelve months or less and recognizes lease expense for these leases as incurred over the lease term. Upon adoption date, the Company had only one operating lease with a remaining term of less than 12 months for its offices located in Charlotte, NC, which had a termination date of July 31, 2019, and for which the Company was not reasonably certain of renewing the lease. The lease was extended for two months and terminated in September 2019. The Company does not have a public credit rating and carries no debt. As such, several factors were considered in the determination of its incremental borrowing rate used in determining the present value of lease payments. The Company examined the Bloomberg credit ratings for similar companies; assumed equivalency between the Canadian and US markets for collateralized debt; factored in the cumulative dividend rate on convertible preferred shares; and used short-term rates based on the remaining lease term of 23 months upon the standard adoption on January 1, 2019 and on 36 months for the new lease agreement entered into in September 2019. This resulted in an incremental borrowing rate of 8%. Lease expenses are recognized on a straight-line basis over the lease term, which is accomplished by increasing the amortization of the right-of-use asset as interest expense on the lease liability declines over the lease term. The Company’s lease arrangements do not have lease and non-lease components which are accounted for separately. The adoption of the accounting standard did not materially impact the Company’s consolidated statement of operations or its consolidated statement of cash flow for the twelve months ended December 31, 2019.

Summary of significant accoun_3

Summary of significant accounting policies (Tables)	12 Months Ended
	Dec. 31, 2019
Summary of significant accounting policies
Schedule of estimated useful lives	Computer hardware and software 3 years Office equipment 5 years Furniture and fixtures 5 years Leasehold improvements 3 years

Leases (Tables)

Leases (Tables)	12 Months Ended
	Dec. 31, 2019
Leases
Schedule of operating lease right-of-use asset	The Company's two operating leases right-of-use assets are as follows as at December 31, 2019: Right-of-use adoption date of January 1, 2019 $ 321 New operating lease right-of-use asset 401 Amortization of right-of-use asset during the year ending December 31, 2019 (198) $ 524
Schedule of minimum lease payments	The following table summarizes the future minimum lease payments of right-of-use assets operating lease as at December 31, 2019: January 1, 2020 to December 31, 2020 $ 354 January 1, 2021 to December 31, 2021 117 January 1, 2022 to December 31, 2022 80 551 Less interest (37) $ 514
Schedule of minimum lease payments	The minimum lease payments as at December 31, 2018 were as follows: Lease Lease operating base rent Total lease expenses expenses commitment 2019 $ 86 $ 130 $ 216 2020 79 85 164 $ 165 $ 215 $ 380

Property and equipment (Table)

Property and equipment (Table)	12 Months Ended
	Dec. 31, 2019
Property and equipment
Schedule of property and equipment	2019 2018 Computer hardware and software $ 22 $ 9 Office equipment 406 28 Leasehold improvements 26 4 Total $ 454 $ 41 Less accumulated depreciation and amortization (49) (11) Property and equipment, net $ 405 $ 30

Accounts payable and accrued _2

Accounts payable and accrued liabilities (Tables)	12 Months Ended
	Dec. 31, 2019
Accounts payable and accrued liabilities
Schedule of accounts payable and accrued liabilities	Accounts payable and accrued liabilities comprised the following as of December 31: 2019 2018 Trade accounts payable $ 4,376 $ 2,603 Accrued research and development liabilities 1,513 1,012 Other accrued liabilities 331 164 Accrued compensation and benefits payable 1,777 698 $ 7,997 $ 4,477

Shareholders' equity (deficit)

Shareholders' equity (deficit) (Tables)	12 Months Ended
	Dec. 31, 2019
Shareholders' equity (deficit)
Schedule of additional paid-in capital	2019 2018 Opening balance $ 2,655 $ 2,372 Share-based compensation expense 1,191 633 Exercise of stock options (41) (350) Closing balance $ 3,805 $ 2,655
Schedule of outstanding and exercisable options	2019 2018 Number Weighted Number Weighted of shares average of shares average exercise exercise 2019 Plan 2011 Plan Total price 2011 Plan price Outstanding at beginning of period — 2,295,045 2,295,045 $ 1.771 968,782 $ 1.133 Granted - 2011 Plan — 116,742 116,742 9.417 1,695,258 2.037 Granted - 2019 Plan 287,138 — 287,138 19.948 — — Exercised - 2011 — (33,162) (33,162) 1.326 (356,797) 1.287 Forfeited - 2011 — (14,099) (14,099) 2.660 (12,198) 1.096 Forfeited - 2019 (66,998) — (66,998) 17.224 — — Outstanding - 12/31/2019 220,140 2,364,526 2,584,666 $ 3.755 2,295,045 $ 1.771 Outstanding - 12/31/2019 - Weighted average exercise price $ 20.777 $ 2.151 Exercisable at end of period 1,165 1,212,226 1,213,391 $ 1.652 588,817 $ 1.314 Exercisable at end of period - Weighted average exercise price $ 17.780 $ 1.637
Schedule of non-vested share options activity	2019 2018 Number Weighted Number Weighted of options average of options average 2019 Plan 2011 Plan Total fair value 2011 Plan fair value Non-vested share options at beginning of period — 1,706,303 1,706,303 $ 1.346 451,113 $ 1.027 Granted - 2011 Plan — 116,742 116,742 6.649 1,695,258 1.463 Granted - 2019 Plan 287,138 — 287,138 13.912 — — Vested, outstanding — (656,646) (656,646) 1.333 (427,870) 1.479 Vested, outstanding (1,165) — (1,165) 12.160 — — Forfeited - 2011 — (14,099) (14,099) 1.906 (12,198) 1.064 Forfeited - 2019 (66,998) — (66,998) 12.221 — — Non-vested share options at end of period 218,975 1,152,300 1,371,275 $ 3.889 1,706,303 $ 1.346 Non-vested share options at end of period - Weighted average fair value $ 14.439 $ 1.884
Schedule of share option outstanding	The following table summarizes information with respect to share options outstanding as of December 31, 2019: Options outstanding Options exercisable Weighted Weighted average Weighted average Weighted remaining average remaining average Number contractual exercise Number contractual exercise Exercise price of options life (years) price of options life (years) price C$0.96 235,497 3.3 $ 0.914 235,497 3.3 $ 0.914 $1.12 261,913 6.3 $ 1.117 207,319 6.2 $ 1.117 $1.54 956,688 7.9 $ 1.543 429,175 7.9 $ 1.543 $1.91 82,772 8.6 $ 1.915 40,122 9 $ 2 $2.66 710,914 8.9 $ 2.660 300,113 8.9 $ 2.660 $9.42 116,742 9.2 $ 9.415 — — $ — $15.87 23,620 9.6 $ 15.870 — — $ — $17.78 42,000 9.9 $ 17.780 1,165 9.9 $ 17.780 $19.14 3,760 9.8 $ 19.140 — — $ — $21.28 3,760 9.7 $ 21.280 — — $ — $22.45 147,000 9.7 $ 22.450 — — $ — Total 2,584,666 7.8 $ 3.755 1,213,391 7.0 $ 1.652
Schedule of weighted average assumptions for the options granted	The fair value of options granted was estimated using the Black‑Scholes option pricing model, resulting in the following weighted average assumptions for the options granted for the years ended December 31, 2019 and 2018: 2019 2018 Exercise price $ 16.900 $ 2.037 Share price $ 16.900 $ 2.037 Volatility 80 % 82 % Risk-free interest rate 1.92 % 2.84 % Expected life 6.21 years 6.25 years Dividend % %
Schedule of share-based compensation expense	The Company recognized share‑based compensation expense as follows at December 31, 2019 and 2018: 2019 2018 Administration $ 574 $ 209 Research and development 495 371 Commercial activities 122 53 $ 1,191 $ 633

Net loss per share (Tables)

Net loss per share (Tables)	12 Months Ended
	Dec. 31, 2019
Net loss per share
Schedule of potentially dilutive securities excluded from the computation of diluted weighted average shares	The following potentially dilutive securities have been excluded from the computation of diluted weighted average shares outstanding as of December 31, 2019 and 2018, as they would be anti‑dilutive: 2019 2018 Redeemable convertible preferred shares — 17,550,802 Share options and unvested restricted share awards 2,584,666 2,295,045 2,584,666 19,845,847

Income taxes (Tables)

Income taxes (Tables)	12 Months Ended
	Dec. 31, 2019
Income taxes
Reconciliation of differences between taxes on income (loss) before income taxes	A reconciliation between tax expense and the product of accounting income multiplied by the basic income tax rate for the years ended December 31, 2019 and 2018 is as follows: 2019 2018 Loss before income taxes $ (55,285) $ (23,111) Basic income tax rate 26.30 % 26.67 % Computed income tax recovery (14,542) (6,164) Effect on income tax rate resulting from Accounting charges not deductible for tax purposes 23 12 Non‑deductible share‑based compensation 317 169 Share issue costs (2,739) Unrecorded potential tax benefits of current period losses and other tax assets 16,829 6,183 Non‑refundable investment tax credit used (earned) in the year — (145) Valuation allowance for prior year adjustment 77 — Other (21) 19 Income tax expense (recovery)/expense reported in the consolidated statements of loss and comprehensive loss $ (56) $ 74
Schedule of deferred tax assets	The Company’s deferred tax assets consist of the following for the years ended December 31, 2019 and 2018: 2019 2018 Net operating loss carry‑forwards 25,965 12,209 Tax basis of property and equipment in excess of carrying values 103 93 Federal SR&ED investment tax credits 535 273 Taxation of federal SR&ED investment tax credits (142) (72) Research and development expenditures 2,686 1,791 Financing costs 2,103 138 Others 16 21 Total gross deferred tax assets 31,266 14,453 Valuation allowance (31,266) (14,453) Net deferred tax assets — —

Currency risk (Tables)

Currency risk (Tables)	12 Months Ended
	Dec. 31, 2019
Currency risk
Schedule of Company's net financial position exposure	The following table provides an indication of the Company’s exposure to the Canadian dollar, which is expressed in US dollars as of December 31: 2019 2018 Cash $ 149 $ 246 Short‑term investments — 29 Accounts payable and accrued liabilities 1,680 538 Net financial position exposure $ 1,531 $ 263

Organization and nature of op_2

Organization and nature of operations (Details)	Apr. 26, 2019
Organization and nature of operations
Reverse share split	0.1880

Summary of significant accoun_4

Summary of significant accounting policies - Property and Equipment (Details)	12 Months Ended
	Dec. 31, 2019
Computer hardware and software
Property, Plant and Equipment
Useful lives	3 years
Office equipment
Property, Plant and Equipment
Useful lives	5 years
Furniture and fixtures
Property, Plant and Equipment
Useful lives	5 years
Leasehold improvements
Property, Plant and Equipment
Useful lives	3 years

Summary of significant accoun_5

Summary of significant accounting policies - Adoption of ASU 2016-02 (Details) $ in Thousands	Jan. 01, 2019USD ($)lease	Dec. 31, 2019USD ($)lease
Adoption of New Accounting Standards
Operating lease right-of use asset	$ 321	$ 524
Operating lease liabilities		514
Carrying value of debt		$ 0
Incremental borrowing rate		8.00%
Charlotte, NC
Adoption of New Accounting Standards
Lease extended term	2 months
ASU 2016-02, Leases
Adoption of New Accounting Standards
Election of practical expedients package	true
Number of short-term operating leases | lease		2
ASU 2016-02, Leases | Charlotte, NC
Adoption of New Accounting Standards
Short-term lease commitment	true
Number of short-term operating leases | lease	1
ASU 2016-02, Leases | Adjustment
Adoption of New Accounting Standards
Operating lease right-of use asset	$ 300
Operating lease liabilities	$ 300

Leases - Narrative (Details)

Leases - Narrative (Details) - lease	Dec. 31, 2019	Sep. 30, 2019	Sep. 10, 2019	Jan. 01, 2019
Remaining lease term		36 months	36 months	23 months
ASU 2016-02, Leases
Number of short-term operating leases	2
Charlotte, NC
Operating lease, term	3 years
Charlotte, NC | ASU 2016-02, Leases
Number of short-term operating leases				1

Leases - Changes in ROU assets

Leases - Changes in ROU assets (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Jan. 01, 2019
Changes in operating lease right-of-use asset
New operating lease right-of-use asset	$ 401
Amortization of right-of-use asset during the nine-month period ending September 30, 2019	(198)
Operating lease right-of use asset	524	$ 321
Operating lease expenses	$ 277

Leases - Future minimum lease p

Leases - Future minimum lease payments (Details) $ in Thousands	Dec. 31, 2019USD ($)
Future minimum lease payments
January 1, 2020 to December 31, 2020	$ 354
January 1, 2021 to December 31, 2021	117
January 1, 2022 to December 31, 2022	80
Total future minimum lease payments	551
Less interest	(37)
Operating lease liability	$ 514

Leases - Minimum lease payments

Leases - Minimum lease payments under ASU 840 (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Jan. 01, 2019
Lease operating expenses
2019	$ 86
2020	79
Total	165
Lease base rent expenses
2019	130
2020	85
Total	215
Total lease commitment
2019	216
2020	164
Total	380
Rental expense under operating leases	$ 232
Ville Saint-Laurent, Quebec
Operating leases
Renewal of Lease	3 years
Charlotte, NC
Operating leases
Renewal of Lease		2 months

Property and equipment (Details

Property and equipment (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Property, Plant and Equipment [Line Items]
Total	$ 454	$ 41
Less accumulated depreciation and amortization	(49)	(11)
Property and equipment, net	405	30
Computer hardware and software
Property, Plant and Equipment [Line Items]
Total	22	9
Office equipment
Property, Plant and Equipment [Line Items]
Total	406	28
Leasehold improvements
Property, Plant and Equipment [Line Items]
Total	$ 26	$ 4

Property and equipment - Narrat

Property and equipment - Narrative (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Research and development
Property, Plant and Equipment [Line Items]
Amortization expense	$ 38	$ 10

Accounts payable and accrued _3

Accounts payable and accrued liabilities (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Accounts payable and accrued liabilities
Trade accounts payable	$ 4,376	$ 2,603
Accrued research and development liabilities	1,513	1,012
Other accrued liabilities	331	164
Accrued compensation and benefits payable	1,777	698
Accounts payable and accrued liabilities	$ 7,997	$ 4,477

Convertible preferred shares -

Convertible preferred shares - (Details)	May 07, 2019$ / shares	Apr. 26, 2019	Oct. 17, 2018USD ($)shares	May 31, 2019shares	Dec. 31, 2019USD ($)$ / sharesshares	May 07, 2019$ / shares
Convertible preferred shares
Common shares issued on conversion of preferred stock | shares				17,550,802
Annual noncumulative dividend (as a percent)					8.00%
Current conversion ratio		0.1880
ASU 2017-11
Convertible preferred shares
Number of preferred shares converted in to common shares | shares					0
Voting interest (as a percent)					70.00%
ASU 2017-11 | Minimum
Convertible preferred shares
Number of preferred shares converted in to common shares | shares					250,000
Gross proceeds | $					$ 60,000
Class A1 preferred shares
Convertible preferred shares
Annual noncumulative dividend (as a percent)	8.00%
Number of preferred shares converted in to common shares | shares					(372,211)
Gross proceeds | $					$ (2,027,000)
Liquidation Preference (in dollars per share)					$ 8.83
Class A1 preferred shares | Maximum
Convertible preferred shares
Common share issuance price (in dollars per share)	$ 5.3193
Class A2 preferred shares
Convertible preferred shares
Annual noncumulative dividend (as a percent)	8.00%
Number of preferred shares converted in to common shares | shares					(2,443,914)
Gross proceeds | $					$ (12,643,000)
Liquidation Preference (in dollars per share)					$ 7.713
Class A2 preferred shares | Maximum
Convertible preferred shares
Common share issuance price (in dollars per share)	$ 5.3193
Class B preferred shares
Convertible preferred shares
Annual noncumulative dividend (as a percent)	8.00%
Number of preferred shares converted in to common shares | shares					(2,830,907)
Gross proceeds | $					$ (17,198,000)
Liquidation Preference (in dollars per share)					$ 7.3406
Class B preferred shares | Maximum
Convertible preferred shares
Common share issuance price (in dollars per share)						$ 6.1172
Class C preferred shares
Convertible preferred shares
Annual noncumulative dividend (as a percent)	8.00%
Number of preferred shares converted in to common shares | shares					(3,786,878)
Gross proceeds | $					$ (27,236,000)
Liquidation Preference (in dollars per share)					$ 7.9258
Class C preferred shares | Maximum
Convertible preferred shares
Common share issuance price (in dollars per share)						7.2619
Class D1 preferred shares
Convertible preferred shares
Annual noncumulative dividend (as a percent)	8.00%
Number of preferred shares converted in to common shares | shares			6,893,236		(6,893,236)
Gross proceeds | $			$ 65,000		$ (64,719,000)
Liquidation Preference (in dollars per share)					$ 9.5747
Stock issuance cost | $			$ 281
Class D1 preferred shares | Maximum
Convertible preferred shares
Common share issuance price (in dollars per share)						9.4295
Class D2 preferred shares
Convertible preferred shares
Annual noncumulative dividend (as a percent)	8.00%
Number of preferred shares converted in to common shares | shares			1,223,656		(1,223,656)
Gross proceeds | $			$ 15,000		$ (14,935,000)
Liquidation Preference (in dollars per share)					$ 12.4472
Stock issuance cost | $			$ 65
Class D2 preferred shares | Maximum
Convertible preferred shares
Common share issuance price (in dollars per share)						$ 12.2583

Shareholders' equity (deficit_2

Shareholders' equity (deficit) - Authorized share capital (Details) - USD ($) $ / shares in Units, $ in Thousands	1 Months Ended	12 Months Ended
	May 31, 2019	Dec. 31, 2019	Dec. 31, 2018	Mar. 08, 2019
Authorized share capital
Number of shares options exercised		33,162
Average exercise price (in dollar per share)		$ 1.3260	$ 1.2870
Amount reclassified from APIC to share capital		$ 41	$ 350
Initial public offering | Common shares
Authorized share capital
Number of shares issued during the period	6,325,000
Share Price	$ 15
Gross proceeds of initial public offering	$ 94,900
Number of preferred shares converted in to common shares	17,550,802
Options | Common shares
Authorized share capital
Number of shares issued upon exercise of options		33,162	356,797
Cash consideration		$ 44	$ 461
Number of shares options exercised		33,162	356,797
Employee Share Purchase Plan 2019 | Common shares
Authorized share capital
Number of common shares initially reserved for issuance				278,734
Percentage of shares reserved for future issuance		1.00%
Additional shares reserved for issuance		487,837
Number of shares issued under the ESPP		0

Shareholders' equity (deficit_3

Shareholders' equity (deficit) - Additional paid-in capital (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Additional paid-in capital
Balance at the beginning of period	$ 83,548	$ 25,985
Share-based compensation expense	1,191	633
Exercise of stock options	44	461
Balance at the end of period	114,917	83,548
Additional paid-in capital
Additional paid-in capital
Balance at the beginning of period	2,655	2,372
Share-based compensation expense	1,191	633
Exercise of stock options	(41)	(350)
Balance at the end of period	$ 3,805	$ 2,655

Shareholders' equity (deficit_4

Shareholders' equity (deficit) - Share-based compensation (Details) - shares	12 Months Ended
	Dec. 31, 2019	May 08, 2019	May 07, 2019
2011 Plan
Share-based compensation
Total number of shares available for awards under the plan			2,787,063
2011 Plan | Options | Share-based Compensation Award, Tranche One
Share-based compensation
Percentage of shares to vest	25.00%
2011 Plan | Options | Share-based Compensation Award, Tranche Two
Share-based compensation
Percentage of shares to vest	2.0833%
2019 Plan
Share-based compensation
Total number of shares available for awards under the plan		4,710,564
Number of new shares available for awards under the plan		1,923,501
Percentage of shares reserved for future issuance		4.00%
2019 Plan | Options
Share-based compensation
Total number of shares available for awards under the plan	2,316,933
Aggregate number of shares granted	287,138
Aggregate number of shares cancelled/forfeited	(66,998)
Available for future grants	2,096,793

Shareholders' equity (deficit_5

Shareholders' equity (deficit) - Share-based compensation - Outstanding and exercisable options (Details) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Outstanding and exercisable options, number of shares
Outstanding at beginning of period	2,295,045
Exercised	(33,162)
Outstanding at end of period	2,584,666	2,295,045
Exercisable at end of period	1,213,391
Outstanding and exercisable options, weighted average exercise price
Outstanding at beginning of period	$ 1.771	$ 1.133
Exercised	1.3260	1.2870
Outstanding at end of period	3.755	1.771
Exercisable at end of period	$ 1.652	$ 1.314
Weighted average remaining contractual life (in years)	7 years 9 months 18 days	8 years 7 months 6 days
Weighted average remaining contractual life for vested options (in years)	7 years	6 years 7 months 6 days
Options forfeited	81,097
Share-based compensation expense	$ 1,191	$ 633
Unrecognized compensation cost	$ 6,464	$ 2,402
Expected period for recognition	2 years 7 months 6 days	3 years 1 month 6 days
2011 Plan
Outstanding and exercisable options, number of shares
Outstanding at beginning of period	2,295,045	968,782
Forfeited/cancelled	(14,099)	(12,198)
Granted	116,742	1,695,258
Exercised	(33,162)	(356,797)
Outstanding at end of period	2,364,526	2,295,045
Exercisable at end of period	1,212,226	588,817
Outstanding and exercisable options, weighted average exercise price
Forfeited/expired	$ 2.660	$ 1.096
Granted	9.417	2.037
Outstanding at end of period	2.151
Exercisable at end of period	$ 1.637
Options forfeited	14,099
Weighted average fair values of options granted	$ 6.6490	$ 1.4630
2019 Plan
Outstanding and exercisable options, number of shares
Forfeited/cancelled	(66,998)
Granted	287,138
Outstanding at end of period	220,140
Exercisable at end of period	1,165
Outstanding and exercisable options, weighted average exercise price
Forfeited/expired	$ 17.224
Granted	19.948
Outstanding at end of period	20.777
Exercisable at end of period	$ 17.780
Options forfeited	66,998	12,198
Weighted average fair values of options granted	$ 13.9120

Shareholders' equity (deficit_6

Shareholders' equity (deficit) - Share-based compensation - Non-vested share options (Details) - $ / shares	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Number of options
Non-vested at beginning of period	1,706,303
Exercised	(33,162)
Non-vested share options at end of period	1,371,275	1,706,303
Weighted average fair value
Non-vested at beginning of period	$ 1.346	$ 1.027
Exercised	1.3260	1.2870
Non-vested at end of period	$ 3.889	$ 1.346
2011 Plan
Number of options
Non-vested at beginning of period	1,706,303	451,113
Forfeited/expired	(14,099)	(12,198)
Granted	116,742	1,695,258
Exercised	(33,162)	(356,797)
Vested, outstanding	(656,646)	(427,870)
Non-vested share options at end of period	1,152,300	1,706,303
Weighted average fair value
Forfeited/expired	$ 1.906	$ 1.064
Granted	6.6490	1.4630
Vested, outstanding	1.333	$ 1.479
Non-vested at end of period	$ 1.884
2019 Plan
Number of options
Forfeited/expired	(66,998)
Granted	287,138
Vested, outstanding	(1,165)
Non-vested share options at end of period	218,975
Weighted average fair value
Forfeited/expired	$ 12.221
Granted	13.9120
Vested, outstanding	12.160
Non-vested at end of period	$ 14.439

Shareholders' equity (deficit_7

Shareholders' equity (deficit) - Share-based compensation - Outstanding and exercisable options (Details) $ / shares in Units, $ in Millions	12 Months Ended
	Dec. 31, 2019$ / shares	Dec. 31, 2018$ / sharesshares	Dec. 31, 2019USD ($)$ / sharesshares	Dec. 31, 2017$ / shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of options, Options outstanding | shares		2,295,045	2,584,666
Weighted average remaining contractual life (years), Options outstanding	7 years 9 months 18 days	8 years 7 months 6 days
Weighted average exercise price, Options outstanding		$ 1.771	$ 3.755	$ 1.133
Number of options, Options exercisable | shares			1,213,391
Weighted average remaining contractual life (years), Options exercisable	7 years
Weighted average exercise price, Options exercisable		$ 1.314	$ 1.652
Intrinsic value of option | $			$ 32.7
Fair value of common share (in dollars per share)			$ 16.01
Intrinsic value of options vested | $			$ 17.4
Intrinsic value of options non vested | $			$ 15.5
C$0.96
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Exercise price (in dollars per share)	$ 0.96
Number of options, Options outstanding | shares			235,497
Weighted average remaining contractual life (years), Options outstanding	3 years 3 months 18 days
Weighted average exercise price, Options outstanding	$ 0.914
Number of options, Options exercisable | shares			235,497
Weighted average remaining contractual life (years), Options exercisable	3 years 3 months 18 days
Weighted average exercise price, Options exercisable	$ 0.914
$1.12
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Exercise price (in dollars per share)			$ 1.12
Number of options, Options outstanding | shares			261,913
Weighted average remaining contractual life (years), Options outstanding	6 years 3 months 18 days
Weighted average exercise price, Options outstanding			$ 1.117
Number of options, Options exercisable | shares			207,319
Weighted average remaining contractual life (years), Options exercisable	6 years 2 months 12 days
Weighted average exercise price, Options exercisable			$ 1.117
$1.54
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Exercise price (in dollars per share)			$ 1.54
Number of options, Options outstanding | shares			956,688
Weighted average remaining contractual life (years), Options outstanding	7 years 10 months 24 days
Weighted average exercise price, Options outstanding			$ 1.543
Number of options, Options exercisable | shares			429,175
Weighted average remaining contractual life (years), Options exercisable	7 years 10 months 24 days
Weighted average exercise price, Options exercisable			$ 1.543
$1.91
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Exercise price (in dollars per share)			$ 1.91
Number of options, Options outstanding | shares			82,772
Weighted average remaining contractual life (years), Options outstanding	8 years 7 months 6 days
Weighted average exercise price, Options outstanding			$ 1.915
Number of options, Options exercisable | shares			40,122
Weighted average remaining contractual life (years), Options exercisable	9 years
Weighted average exercise price, Options exercisable			$ 2
$2.66
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Exercise price (in dollars per share)			$ 2.66
Number of options, Options outstanding | shares			710,914
Weighted average remaining contractual life (years), Options outstanding	8 years 10 months 24 days
Weighted average exercise price, Options outstanding			$ 2.660
Number of options, Options exercisable | shares			300,113
Weighted average remaining contractual life (years), Options exercisable	8 years 10 months 24 days
Weighted average exercise price, Options exercisable			$ 2.660
$9.42
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Exercise price (in dollars per share)			$ 9.42
Number of options, Options outstanding | shares			116,742
Weighted average remaining contractual life (years), Options outstanding	9 years 2 months 12 days
Weighted average exercise price, Options outstanding			$ 9.415
$15.87
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Exercise price (in dollars per share)			$ 15.87
Number of options, Options outstanding | shares			23,620
Weighted average remaining contractual life (years), Options outstanding	9 years 7 months 6 days
Weighted average exercise price, Options outstanding			$ 15.870
$17.78
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Exercise price (in dollars per share)			$ 17.78
Number of options, Options outstanding | shares			42,000
Weighted average remaining contractual life (years), Options outstanding	9 years 10 months 24 days
Weighted average exercise price, Options outstanding			$ 17.780
Number of options, Options exercisable | shares			1,165
Weighted average remaining contractual life (years), Options exercisable	9 years 10 months 24 days
Weighted average exercise price, Options exercisable			$ 17.780
$19.14
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Exercise price (in dollars per share)			$ 19.14
Number of options, Options outstanding | shares			3,760
Weighted average remaining contractual life (years), Options outstanding	9 years 9 months 18 days
Weighted average exercise price, Options outstanding			$ 19.140
$21.28
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Exercise price (in dollars per share)			$ 21.28
Number of options, Options outstanding | shares			3,760
Weighted average remaining contractual life (years), Options outstanding	9 years 8 months 12 days
Weighted average exercise price, Options outstanding			$ 21.280
$22.45
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Exercise price (in dollars per share)			$ 22.45
Number of options, Options outstanding | shares			147,000
Weighted average remaining contractual life (years), Options outstanding	9 years 8 months 12 days
Weighted average exercise price, Options outstanding			$ 22.450

Shareholders' equity (deficit_8

Shareholders' equity (deficit) - Share-based compensation - Weighted average assumptions for the options granted (Details) - Options - $ / shares	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Share-based compensation
Exercise price (in dollars per share)	$ 16.9000	$ 2.0370
Share price (in dollars per share)	$ 16.9000	$ 2.0370
Volatility (as a percent)	80.00%	82.00%
Risk-free interest rate (as a percent)	1.92%	2.84%
Expected life (in years)	6 years 2 months 16 days	6 years 3 months
Dividend (as a percent)	0.00%	0.00%

Shareholders' equity (deficit_9

Shareholders' equity (deficit) - Share-based compensation - Recognized share-based compensation expense (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Share-based compensation
Share-based compensation expense	$ 1,191	$ 633
Administration
Share-based compensation
Share-based compensation expense	574	209
Research and development
Share-based compensation
Share-based compensation expense	495	371
Commercial activities
Share-based compensation
Share-based compensation expense	$ 122	$ 53

Net loss per share (Details)

Net loss per share (Details) - shares	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Net loss per share
Potentially dilutive securities excluded from the computation of diluted weighted average shares outstanding	2,584,666	19,845,847
Redeemable convertible preferred shares
Net loss per share
Potentially dilutive securities excluded from the computation of diluted weighted average shares outstanding		17,550,802
Share options and unvested restricted share awards
Net loss per share
Potentially dilutive securities excluded from the computation of diluted weighted average shares outstanding	2,584,666	2,295,045

Income taxes - Income Tax Expen

Income taxes - Income Tax Expense Reconciliation (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Loss before income taxes	$ (55,285)	$ (23,111)
Basic income tax rate	26.30%	26.67%
Computed income tax recovery	$ (14,542)	$ (6,164)
Accounting charges not deductible for tax purposes	23	12
Non-deductible share-based compensation	317	169
Unrecorded potential tax benefits of current period losses and other tax assets	16,829	6,183
Non-refundable investment tax credit used (earned) in the year		(145)
Share issue costs	(2,739)
Valuation allowance adjustment for prior year	77
Other	(21)	19
Income tax expense reported in the consolidated statements of loss and comprehensive loss	(56)	74
Scientific research and experimental development expenditures	41,985	$ 16,849
Canada Federal
NOL Carry Forwards	86,591
Scientific research and experimental development expenditures	9,377
Quebec
NOL Carry Forwards	86,085
Scientific research and experimental development expenditures	11,127
United States
NOL Carry Forwards	$ 12,439

Income taxes - Deferred Tax Ass

Income taxes - Deferred Tax Assets (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Income taxes
Net operating loss carry-forwards	$ 25,965	$ 12,209
Tax basis of property and equipment in excess of carrying values	103	93
Federal SR&ED investment tax credits	535	273
Taxation of federal SR&ED investment tax credits	(142)	(72)
Research and development expenditures	2,686	1,791
Financing costs	2,103	138
Others	16	21
Total gross deferred tax assets	31,266	14,453
Valuation allowance	$ (31,266)	$ (14,453)

Government assistance (Details)

Government assistance (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Government assistance
Research and development expenditures eligible for investment tax credits	$ 392	$ 257

Commitments (Details)

Commitments (Details) $ in Millions	Dec. 31, 2019USD ($)
Commitments
Contractual commitments	$ 0

Currency risk (Details)

Currency risk (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Net financial position exposure	$ 1,531	$ 263
Cash
Net financial position exposure	149	246
Short-term investments
Net financial position exposure		29
Accounts payable and accrued liabilities
Net financial position exposure	$ 1,680	$ 538

Fair value of financial instr_2

Fair value of financial instruments (Details) $ in Thousands	Dec. 31, 2018USD ($)
Recurring | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Guaranteed investment certificates	$ 29