Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Mar. 13, 2015 | Jun. 30, 2014 | |
Document And Entity Information | |||
Entity Registrant Name | Rare Element Resources Ltd | ||
Entity Central Index Key | 1419806 | ||
Document Type | 10-K | ||
Document Period End Date | 31-Dec-14 | ||
Amendment Flag | FALSE | ||
Current Fiscal Year End Date | -19 | ||
Is Entity a Well-known Seasoned Issuer? | No | ||
Is Entity a Voluntary Filer? | No | ||
Is Entity's Reporting Status Current? | Yes | ||
Entity Filer Category | Accelerated Filer | ||
Entity Public Float | $61,197,678 | ||
Entity Common Stock, Shares Outstanding | 47,707,216 | ||
Document Fiscal Period Focus | FY | ||
Document Fiscal Year Focus | 2014 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
CURRENT ASSETS: | ||
Cash and cash equivalents | $10,139 | $23,902 |
Interest receivable | 6 | 4 |
Accounts receivable | 21 | 29 |
Prepaid expenses | 315 | 402 |
Total Current Assets | 10,481 | 24,337 |
Equipment, net | 344 | 521 |
Land | 980 | 980 |
Mineral properties | 27 | 27 |
Total Assets | 11,832 | 25,865 |
CURRENT LIABILITIES: | ||
Accounts payable and accrued liabilities | 1,098 | 1,528 |
Asset retirement obligation | 164 | 204 |
Total Current Liabilities | 1,262 | 1,732 |
Asset retirement obligation | 202 | 211 |
Total Liabilities | 1,464 | 1,943 |
Commitments and Contingencies | ||
SHAREHOLDERS' EQUITY | ||
Common shares, no par value - unlimited shares authorized; shares outstanding December 31, 2014 - 47,707,216, December 31, 2013 - 47,627,245 | 100,652 | 100,513 |
Additional paid in capital | 23,186 | 22,850 |
Accumulated other comprehensive income/(loss) | 0 | 0 |
Accumulated deficit | -113,470 | -99,441 |
Total Shareholders' Equity | 10,368 | 23,922 |
Total Liabilities and Shareholders' Equity | $11,832 | $25,865 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | ||
Statement of Financial Position [Abstract] | ||||
Common Stock, Par Value | $0 | $0 | ||
Common Stock, Shares Authorized | [1] | [1] | ||
Common Stock, Shares Outstanding | 47,707,216 | 47,627,245 | ||
[1] | unlimited shares |
Consolidated_Statements_of_Ope
Consolidated Statements of Operations and Comprehensive Loss (USD $) | 6 Months Ended | 12 Months Ended | ||||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Jun. 30, 2012 |
Operating income and (expenses): | ||||||
Exploration and evaluation | ($12,939) | ($10,363) | ($8,558) | ($14,126) | ($18,314) | ($15,168) |
Corporate administration | -4,158 | -7,791 | -4,946 | -6,616 | -11,914 | -16,109 |
Depreciation | -90 | -42 | -210 | -197 | -171 | -123 |
Write-down of mineral property | 0 | -931 | 0 | 0 | -943 | -1,874 |
Total operating expenses | -17,187 | -19,127 | -13,714 | -20,939 | -31,341 | -33,274 |
Non-operating income and (expenses): | ||||||
Interest income | 301 | 538 | 76 | 232 | 627 | 864 |
Gain/(loss) on currency translation | 1,457 | -2,686 | -507 | -1,531 | 1,525 | -2,618 |
Loss on sale of marketable securities | -7 | -9 | 0 | -39 | -9 | -11 |
Gain/(loss) on derivatives | -4 | 173 | 116 | 81 | -142 | 35 |
Other income/(expense) | 10 | 50 | -50 | -22 | 10 | |
Total non-operating income/(expenses) | 1,757 | -1,934 | -315 | -1,307 | 1,979 | -1,720 |
Net loss | -15,430 | -21,061 | -14,029 | -22,246 | -29,362 | -34,994 |
Other comprehensive income/(loss) | ||||||
Realized gain on available-for-sale securities | 7 | 9 | 39 | 9 | 11 | |
Unrealized gain/(loss) on available-for-sale securities | 2 | -39 | 4 | -17 | -59 | |
Total other comprehensive income/(loss) | 9 | -30 | 43 | -8 | -48 | |
COMPREHENSIVE LOSS | ($15,421) | ($21,091) | ($14,029) | ($22,203) | ($29,370) | ($35,042) |
LOSS PER SHARE - BASIC AND DILUTED | ($0.35) | ($0.48) | ($0.29) | ($0.48) | ($0.66) | ($0.79) |
WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING | 44,610,070 | 44,096,346 | 47,706,559 | 46,299,560 | 44,581,287 | 44,189,656 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 6 Months Ended | 12 Months Ended | ||||
In Thousands, unless otherwise specified | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Jun. 30, 2012 |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||
Net loss for the period | ($15,430) | ($21,061) | ($14,029) | ($22,246) | ($29,362) | ($34,994) |
Adjustments to reconcile loss for the period to net cash and cash equivalents used in operations: | ||||||
Depreciation | 90 | 42 | 210 | 197 | 171 | 123 |
Asset retirement obligation | -46 | 0 | -49 | 26 | 288 | 334 |
Realized gain on derivatives | -14 | -150 | 0 | |||
Unrealized (gain)/loss on derivatives | 4 | -173 | -102 | 69 | 142 | -35 |
Write-down of mineral property | 0 | 931 | 0 | 0 | 943 | 1,874 |
Gain on currency translation | 16 | 12 | 0 | 0 | -29 | -33 |
Loss on disposal of marketable securities | 7 | 9 | 0 | 39 | 9 | 11 |
Gain on disposal of equipment | -3 | 0 | 0 | 0 | -3 | |
Stock-based compensation | 1,643 | 6,041 | 517 | 1,378 | 6,359 | 10,757 |
Adjustments Total | -13,719 | -14,199 | -13,467 | -20,687 | -21,482 | -21,963 |
Changes in working capital | ||||||
Accounts receivable | 6 | -22 | 8 | -12 | -155 | -183 |
Interest receivable | -128 | -200 | -2 | 299 | 188 | 109 |
Prepaid expenses | 55 | -1 | 87 | -217 | 169 | 113 |
Accounts payable and accrued liabilities | 1,389 | 1,777 | -314 | -1,839 | 641 | 1,036 |
Due to related party | -45 | 0 | 0 | -29 | -74 | |
Net cash and cash equivalents used in operating activities | -12,397 | -12,690 | -13,688 | -22,456 | -20,668 | -20,961 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||
Purchases of short-term investments | -485 | 0 | 0 | -9,823 | -15,118 | -14,633 |
Releases of restricted cash | 422 | 0 | 0 | 0 | 422 | |
Purchases of equipment | -11 | -270 | -33 | -201 | -316 | -575 |
Purchases of land | 0 | -980 | 0 | |||
Proceeds from sale of marketable securities | 36 | 70 | 0 | 36 | 80 | 114 |
Proceeds from sale of short-term investments | 0 | 24,941 | 0 | |||
Net cash and cash equivalents provided by (used in) investing activities | -38 | -200 | -33 | 13,973 | -14,932 | -15,094 |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||
Cash received for common shares, net of share issuance costs | 390 | 55 | -42 | 7,400 | 1,108 | 773 |
Net cash and cash equivalents provided by (used in) financing activities | 390 | 55 | -42 | 7,400 | 1,108 | 773 |
Decrease in cash and cash equivalents | -12,045 | -12,835 | -13,763 | -1,083 | -34,492 | -35,282 |
Cash and cash equivalents - beginning of the period | 37,030 | 72,312 | 23,902 | 24,985 | 59,477 | 72,312 |
Cash and cash equivalents - end of the period | $24,985 | $59,477 | $10,139 | $23,902 | $24,985 | $37,030 |
CONSOLIDATED_STATEMENTS_OF_SHA
CONSOLIDATED STATEMENTS OF SHAREHOLDERSb EQUITY (USD $) | Common Stock | Additional Paid in Capital | Accumulated Other Comprehensive Income/(Loss) | Accumulated Deficit | Total |
In Thousands, except Share data | |||||
Beginning Balance, Amount at Dec. 31, 2011 | $91,457 | $15,501 | ($26) | ($47,833) | $59,099 |
Beginning Balance, Shares at Dec. 31, 2011 | 44,096,674 | ||||
Exercise of options - cash, Shares | 744,624 | ||||
Exercise of options - cash, Amount | 603 | 603 | |||
Exercise of options - fair value | 531 | -531 | 0 | ||
Exercise of warrants - cash, Shares | 108,571 | ||||
Exercise of warrants - cash, Amount | 504 | 504 | |||
Exercise of warrants - fair value | 161 | 161 | |||
Stock-based compensation | 6,359 | 6,359 | |||
Unrealized loss on marketable securities | -17 | -17 | |||
Net loss for the period | -29,362 | -29,362 | |||
Ending Balance, Amount at Dec. 31, 2012 | 93,256 | 21,329 | -43 | -77,195 | 37,347 |
Ending Balance, Shares at Dec. 31, 2012 | 44,949,869 | ||||
Shares issued For private placement, Shares | 2,677,376 | ||||
Shares issued For private placement, Amount | 8,000 | 8,000 | |||
Share issue costs | -743 | 143 | -600 | ||
Stock-based compensation | 1,378 | 1,378 | |||
Unrealized loss on marketable securities | 43 | 43 | |||
Net loss for the period | -22,246 | -22,246 | |||
Ending Balance, Amount at Dec. 31, 2013 | 100,513 | 22,850 | -99,441 | 23,922 | |
Ending Balance, Shares at Dec. 31, 2013 | 47,627,245 | ||||
Exercise of options, Shares | 79,971 | ||||
Exercise of options, Amount | 139 | -181 | -42 | ||
Stock-based compensation | 517 | 517 | |||
Net loss for the period | -14,029 | -14,029 | |||
Ending Balance, Amount at Dec. 31, 2014 | $100,652 | $23,186 | ($113,470) | $10,368 | |
Ending Balance, Shares at Dec. 31, 2014 | 47,707,216 |
1_DESCRIPTION_OF_BUSINESS
1. DESCRIPTION OF BUSINESS | 12 Months Ended |
Dec. 31, 2014 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
DESCRIPTION OF BUSINESS | Rare Element Resources Ltd. (collectively referred to as “Rare Element,” the “Company,” “our,” “we” or “us”) operates in the mining industry and is focused on advancing its Bear Lodge REE Project. Currently, the Company is undertaking advanced engineering and technical studies while working towards obtaining the necessary operating permits that will allow the Company to develop the Bear Lodge REE Project and begin commercial rare earth production at some time in the future. |
Our continuing operations and the recoverability of the carrying values of our mineral property interests are dependent upon the existence of economic reserves being developed at the Bear Lodge REE Project, the ability of the Company to obtain the necessary operating permits to mine the Bear Lodge REE Project and on future profitable production at the Bear Lodge REE Project or proceeds from the disposition of any of our mineral property interests. Development of and/or commencement of commercial production at the Bear Lodge REE Project is dependent upon our ability to obtain the necessary financing and permitting to complete the exploration, development and/or construction of the Bear Lodge REE Project. Although we have been successful in raising such capital necessary to sustain our operations in the past, there can be no assurance that we will be able to do so in the future. |
2_BASIS_OF_PRESENTATION
2. BASIS OF PRESENTATION | 12 Months Ended |
Dec. 31, 2014 | |
Basis Of Presentation | |
BASIS OF PRESENTATION | Principles of consolidation |
These consolidated financial statements have been prepared in accordance with U.S. GAAP and are inclusive of the accounts of Rare Element Resources Ltd. and its directly and indirectly held wholly-owned subsidiaries, which consist of its wholly-owned subsidiary Rare Element Holdings Ltd. (“Holdings”) and Holdings’ wholly-owned subsidiary, Rare Element Resources, Inc. Certain comparative figures have been reclassified to conform to the financial statement presentation adopted for the current year. Rare Element Resources Ltd. was incorporated under the laws of the Province of British Columbia on June 3, 1999. | |
Fiscal year-end change | |
On September 7, 2012, our Board of Directors approved a change in our fiscal year-end from June 30 to December 31, with the change to the calendar year reporting cycle beginning January 1, 2013. Consequently, on March 18, 2013, we filed a Transition Report on Form 10-K for the six-month transition period ended December 31, 2012. The intent of the change was to align the reporting of our financial results more closely with that of our peers and to better synchronize our management processes and budget cycles with financial reporting. References in this report to fiscal 2012 and 2011 indicate the twelve-month periods ended June 30, 2012 and 2011, respectively. Financial information in these notes with respect to the year ended December 31, 2012 is unaudited. | |
Recent Accounting Pronouncements | |
In August 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-15, “Presentation of Financial Statements-Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern” (“ASU 2014-15”). ASU 2014-15 is intended to define management’s responsibility to evaluate whether there is substantial doubt about an organization’s ability to continue as a going concern and to provide related footnote disclosures. The amendments in this ASU are effective for reporting periods beginning after December 15, 2016, with early adoption permitted. We are currently assessing the impact the adoption of ASU 2014-15 will have on our financial statements and related disclosures. | |
In June 2014, the FASB issued ASU No. 2014-10, which amended Accounting Standards Codification (ASC) Topic 915 Development Stage Entities. The amendment eliminates certain financial reporting requirements surrounding development stage entities, including an amendment to the variable interest entities guidance in ASC Topic 810, Consolidation. The amendment removes the definition of a development stage entity from the ASC, thereby removing the financial reporting distinction between development stage entities and other entities from U.S. GAAP. Consequently, the amendment eliminates the requirements for development stage entities to (1) present inception-to-date information in the statements of income, cash flows and shareholder equity, (2) label the financial statements as those of a development stage entity, (3) disclose a description of the development stage activities in which the entity is engaged, and (4) disclose the first year in which the entity is no longer a development stage entity. This amendment is effective for fiscal years beginning after December 15, 2014, and interim periods therein. Early application of each of the amendments is permitted for any annual reporting period or interim period for which the entity’s financial statements have not yet been issued. The Company has made the election to early adopt this amendment effective December 31, 2014 and, as a result, the Company is no longer presenting or disclosing the information previously required under Topic 915. The early adoption was made to reduce data maintenance by removing all incremental financial reporting requirements for development stage entities. The adoption of this amendment alters the disclosure requirements of the Company, but it does not have any material impact on the Company’s financial position or results of operations for the current or any prior reporting periods. |
3_SUMMARY_OF_SIGNIFICANT_ACCOU
3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Accounting Policies [Abstract] | |||||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | Use of estimates | ||||||||
The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of expenses during the reporting period. Actual results could differ from those estimates. The amounts which involve significant estimates include asset retirement obligations, stock-based compensation, derivative liabilities, and impairments. | |||||||||
Cash and cash equivalents | |||||||||
Cash and cash equivalents consist of cash and liquid investments with an original maturity of three months or less. At December 31, 2014 and 2013, cash and cash equivalents consisted of $10,139 and $23,902, respectively, of funds held in bank accounts with financial institutions in both Canada and the U.S. | |||||||||
Short-term investments | |||||||||
Short-term investments generally represent investments in guaranteed interest contracts and time deposits which have original maturities in excess of three months but less than twelve months. These investments are accounted for at amortized cost. | |||||||||
Marketable securities | |||||||||
Marketable securities include our investments in shares of publicly traded companies. These investments have been categorized as available-for-sale financial instruments and are carried at fair value. Adjustments to fair value are recorded in other comprehensive income/(loss) unless there is a sustained loss in value that is deemed to be other- than-temporary, in which case the adjustment to fair value is included in income and not reversed on future fair value changes. | |||||||||
Mineral properties | |||||||||
Mineral property acquisition costs, including indirectly related acquisition costs, are capitalized when incurred. Acquisition costs include cash consideration and the fair-market value of common shares issued as consideration. Properties acquired under option agreements, whereby payments are made at the sole discretion of the Company, are capitalized as mineral property acquisition costs at such time as the payments are made. Exploration costs are expensed as incurred. When it is determined that a mining deposit can be economically and legally extracted or produced based on established proven and probable reserves under SEC Industry Guide 7, development costs related to such reserves incurred after such determination will be considered for capitalization. The establishment of proven and probable reserves is based on results of feasibility studies which indicate whether a property is economically feasible. Upon commencement of commercial production, capitalized costs will be amortized over their estimated useful lives or units of production, whichever is a more reliable measure. Capitalized amounts relating to a property that is abandoned or otherwise considered uneconomic for the foreseeable future will be written off. | |||||||||
Restricted cash | |||||||||
The Company maintains at times cash deposits and/or surety bonds, as required by regulatory bodies as assurance for the funding of future reclamation costs associated with the Company’s asset retirement obligation. These funds held in cash deposits and/or used as collateral for surety bonds are restricted to that purpose and are not available for the Company’s use until the reclamation obligations have been fulfilled. Restricted cash is classified as a non-current asset. | |||||||||
Asset retirement obligations | |||||||||
Our mining and exploration activities are subject to various laws and regulations, including legal and contractual obligations to reclaim, remediate, or otherwise restore properties at the time the property is removed from service. Asset retirement obligations are recognized when incurred and recorded as liabilities at fair value. The reclamation obligation is based on when spending for an existing disturbance will occur. We reclaim the disturbance from our exploration programs on an ongoing basis and therefore the portion of our asset retirement obligation corresponding to our exploration programs will be settled in the near term and is classified as a current liability. The remaining reclamation associated with environmental monitoring programs is classified as a long-term liability; however, because we have not declared proven and probable reserves under SEC Industry Guide 7, the timing of these reclamation activities is uncertain. The fair value of the outstanding liability at the end of the period approximates the cost of the asset retirement obligation. For exploration stage properties that do not qualify for asset capitalization, the costs associated with the obligation are charged to operations. For development and production stage properties, the costs will be added to the capitalized costs of the property and amortized using the units-of-production method. We review, on a quarterly basis, unless otherwise deemed necessary, the asset retirement obligation in connection with the Bear Lodge REE Property. | |||||||||
Asset retirement obligations are secured by surety bonds held for the benefit of the state of Wyoming in amounts determined by applicable federal and state regulatory agencies. | |||||||||
Changes in our current and non-current asset retirement obligations are summarized in the following table: | |||||||||
Year ended December 31, | Year ended December 31, | Six months ended December 31, | Year ended June 30, | ||||||
2014 | 2013 | 2012 | 2012 | ||||||
Balance, beginning of period | $ 415 | $ 389 | $ 435 | $ 101 | |||||
Additions | 19 | 54 | 116 | ||||||
Releases | -66 | -30 | -178 | ||||||
Revisions to cost estimates | -2 | 2 | 16 | 334 | |||||
Balance, end of period | $ 366 | $ 415 | $ 389 | $ 435 | |||||
Derivative instruments | |||||||||
From time to time, the Company may use derivative financial instruments to manage its foreign currency risks. All derivative financial instruments are classified as current liabilities and are accounted for at trade date. Embedded derivatives are separated from the host contract and accounted for separately if the economic characteristics and risks of the host contract and the embedded derivative are not closely related. The Company re-measures all derivative financial instruments as of the date of the balance sheet based on fair values derived from option pricing models. Gains or losses arising from changes in fair value of derivatives are recognized in the Consolidated Statements of Loss, except for derivatives that are highly effective and qualify for cash flow or net investment hedge accounting. The Company does not have any derivatives that are highly effective and qualify for cash flow or net investment hedging. There were no derivatives outstanding as of December 31, 2014. | |||||||||
Common shares | |||||||||
Common shares issued for non-monetary consideration are recorded at fair market value based upon the trading price of our shares on the TSX or the NYSE MKT on the share issuance date. Common shares issued for monetary consideration are recorded at the amount received, less issuance costs. | |||||||||
Foreign currency translation | |||||||||
Our functional currency is the U.S. dollar. All of our foreign subsidiaries are direct and integral components of the Company and are dependent upon the economic environment of our functional currency. Therefore, the functional currency of our foreign entities is considered to be the U.S. dollar in accordance with ASC Topic 830, “Foreign Currency Matters,” and accordingly, translation gains and losses are reported in the loss for that period. Assets and liabilities of these foreign operations are translated using period-end exchange rates and revenues and expenses are translated using average exchange rates during each period. | |||||||||
Depreciation | |||||||||
Depreciation is based on the straight-line method. We depreciate computer equipment, furniture and fixtures and geological equipment over a period of three years. We depreciate vehicles over a period of five years. | |||||||||
Stock-based compensation | |||||||||
The fair value of share-based compensation awards issued to employees and directors of the Company is measured at the date of grant and amortized over the requisite service period, which is generally the vesting period. The Company uses the Black-Scholes option valuation model to calculate the fair value of awards granted. | |||||||||
The fair value of share-based compensation awards issued to non-employees is determined on the measurement date of such awards. The measurement date is typically the vesting date. Upon vesting, the fair value of share-based compensation awards issued to non-employees is calculated using the Black-Scholes option valuation model, and the amount is recorded as an expense with a corresponding increase in additional paid-in-capital. | |||||||||
When a share-based compensation award is exercised and the resulting common shares are issued, the fair value of such award as determined on the date of grant or date of vesting (in the case of a non-employee exercise) is transferred to common shares. In the case of a share-based compensation award that is either cancelled or forfeited prior to vesting, the amortized expense associated with the unvested awards is reversed. | |||||||||
Income taxes | |||||||||
The Company accounts for income taxes under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. Under the asset and liability method, the effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. A valuation allowance is recognized if it is more likely than not that the entire or some portion of the deferred tax asset will not be recognized. | |||||||||
Loss per share | |||||||||
The loss per share is computed using the weighted average number of shares outstanding during the period. To calculate diluted loss per share, the Company uses the treasury stock method and the if-converted method. Diluted loss per share is not presented as the effect on the basic loss per share would be anti-dilutive. At December 31, 2014, 2013 and 2012 and at June 30, 2012, we had 5,818,057; 6,173,057; 4,331,000 and 4,542,002 in potentially dilutive securities, respectively. | |||||||||
Fair value of financial instruments | |||||||||
Our financial instruments may at times consist of cash and cash equivalents, short-term investments, marketable securities, accounts receivable, restricted cash, derivative liabilities, accounts payable and accrued liabilities. U.S. GAAP defines fair value as the price that would be received to sell an asset or be paid to transfer a liability in an orderly transaction between market participants at the measurement date (exit price) and establishes a fair-value hierarchy that prioritizes the inputs used to measure fair value using the following definitions (from highest to lowest priority): | |||||||||
Level 1 — Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities. | |||||||||
Level 2 — Observable inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly, including quoted prices for similar assets and liabilities in active markets; quoted prices for identical or similar assets and liabilities in markets that are not active; or other inputs that are observable or can be corroborated by observable market data by correlation or other means. | |||||||||
Level 3 — Prices or valuation techniques requiring inputs that are both significant to the fair-value measurement and unobservable. | |||||||||
The Company continually monitors its cash positions with, and the credit quality of, the financial institutions with which it invests. The Company maintains balances in various U.S. financial institutions in excess of U.S. federally insured limits. | |||||||||
The Company had no embedded derivatives as of December 31, 2014. Included within accounts payable, and other accrued liabilities at December 31, 2013 and 2012 is an embedded derivative that has been accounted for in accordance with the Company’s accounting policy as described above. This embedded derivative represents a foreign currency option that the Company sells within an enhanced yield deposit account that has been included in cash and cash equivalents. The fair value of the derivative liability associated with this embedded derivative instrument is shown separately as a liability in the table below. | |||||||||
The following table presents information about financial instruments recognized at fair value on a recurring basis as of December 31, 2014 and 2013, and indicates the fair value hierarchy: | |||||||||
31-Dec-14 | 31-Dec-13 | ||||||||
Level 1 | Level 2 | Total | Level 1 | Level 2 | Total | ||||
Assets | |||||||||
Cash and cash equivalents | $10,139 | $ - | $10,139 | $23,902 | $ - | $23,902 | |||
Short-term investments | - | - | - | - | - | - | |||
Marketable securities | - | - | - | - | - | - | |||
Total financial assets | $10,139 | $ - | $10,139 | $23,902 | $ - | $23,902 | |||
Liabilities | |||||||||
Accounts payable and other accrued liabilities | $ 1,098 | $ - | $ 1,098 | $ 1,425 | $ - | $ 1,425 | |||
Asset retirement obligation | - | 366 | 366 | - | 415 | 415 | |||
Derivative liabilities | - | - | - | - | 103 | 103 | |||
Total financial assets and liabilities | $11,237 | $ 366 | $11,603 | $25,327 | $ 518 | $25,845 | |||
Derivative liabilities noted above are included within accounts payable and other accrued liabilities as presented on the Consolidated Balance Sheets. |
4_MINERAL_PROPERTIES
4. MINERAL PROPERTIES | 12 Months Ended |
Dec. 31, 2014 | |
Extractive Industries [Abstract] | |
4. MINERAL PROPERTIES | The amounts shown represent acquisition costs, and do not necessarily represent present or future values as these are entirely dependent upon the economic recovery of future ore reserves. A summary of current property interests is as follows: |
Bear Lodge Property, Wyoming, USA | |
The Company, through our indirectly held, wholly owned subsidiary, Rare Element Resources, Inc., holds a 100% interest in a group of unpatented mining claims and 634 acres (257 hectares) of owned property, together which contain: (1) the Bear Lodge REE Project that contains REE mineralization; and (2) the Sundance Gold Project that contains gold mineralization. The property is situated in the Bear Lodge Mountains of Crook County, in northeast Wyoming. These claims were, in part, acquired from Freeport-McMoRan Copper & Gold (“Freeport”) by way of a “Mineral Lease and Option for Deed.” | |
On June 1, 2006, Rare Element Resources, Inc. and Newmont North America Exploration Limited (“Newmont”), a subsidiary of Newmont Mining Corporation, signed an agreement to establish a gold-exploration venture on our Bear Lodge Property (the “Venture”). Under the agreement, Newmont had the right to earn a 65% participating interest in the Bear Lodge Property, excluding any rights to the REE and uranium, but including rights to gold and other metals, by spending $5,000 on property exploration. | |
On May 12, 2010, Newmont terminated the option and the Company retained its 100% interest in the mining claims of the entire property. In addition, 327 contiguous claims wholly-owned by Newmont outside the Venture were transferred to the Company. In consideration for transferring these claims, Newmont was granted a right-of-first-refusal on all claims sold or disposed, excluding those containing REE, and a 0.5% net smelter royalty (“NSR”) royalty, for precious and base metals only, on the claims transferred to the Company by Newmont. This agreement honors an arrangement between Newmont and Bronco Creek Exploration Company, a wholly owned subsidiary of Eurasian Minerals Inc. (“Bronco Creek”), on Newmont’s formerly wholly-owned claims, pursuant to which Bronco Creek will continue to receive minor payments and will retain a 0.05% NSR royalty on these claims. | |
The Bear Lodge Property comprises 499 unpatented mining claims located on land administered by the USFS and 634 acres (257 hectares) of owned property for a total of approximately 9,000 acres (3,642 hectares). |
5_EQUIPMENT_AND_LAND
5. EQUIPMENT AND LAND | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Property, Plant and Equipment [Abstract] | ||||||||
EQUIPMENT AND LAND | At December 31, 2014 and 2013, equipment consisted of the following: | |||||||
December 31, | December 31, | |||||||
2014 | 2013 | |||||||
Cost | Accumulated depreciation | Net book value | Cost | Accumulated depreciation | Net book value | |||
Computer equipment | $ 189 | $ 168 | $ 21 | $ 169 | $ 118 | $ 51 | ||
Furniture | 111 | 64 | 47 | 111 | 48 | 63 | ||
Geological equipment | 488 | 319 | 169 | 488 | 217 | 271 | ||
Vehicles | 221 | 114 | 107 | 208 | 72 | 136 | ||
$ 1,009 | $ 665 | $ 344 | $ 976 | $ 455 | $ 521 | |||
Depreciation expense for the year ended December 31, 2014 and 2013 and six-month period ended December 31, 2012 was $210, $197 and $90, respectively. Depreciation expense for the fiscal year ended June 30, 2012 was $123. We evaluate the recoverability of the carrying value of equipment when events and circumstances indicate that such assets might be impaired. | ||||||||
On April 29, 2013, we completed a land acquisition from the state of Wyoming in conjunction with a third-party land exchange resulting in an additional 640 acres being owned by the Company and subject to a royalty retained by the state of Wyoming. The royalty is a non-participating interest at the royalty rate commensurate with the state or federal royalty rate, whichever is higher, for any such mineral(s), at the time of development. The property is immediately adjacent to our mine site, and the cash consideration paid was $980. |
6_ADDITIONAL_PAID_IN_CAPITAL
6. ADDITIONAL PAID IN CAPITAL | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
Equity [Abstract] | ||||||||||||||||
6. ADDITIONAL PAID IN CAPITAL | Stock-based compensation | |||||||||||||||
We have options outstanding and exercisable that were issued under two plans, the Fixed Stock Option Plan (“FSOP”) and the 10% Rolling Stock Option Plan (“RSOP”). | ||||||||||||||||
The FSOP was originally approved by shareholders on December 11, 2002 and subsequently approved by shareholders on December 7, 2009, following certain amendments to the FSOP. The FSOP expired upon the adoption of the 10% Rolling Stock Option Plan, which was approved by shareholders on December 2, 2011, and as such, we may no longer grant options under the FSOP. However, the terms of the FSOP continue to govern all prior awards granted under such plan until such awards have been cancelled, forfeited or exercised in accordance with the terms thereof. Under the FSOP, we could grant stock options for up to 5,779,347 common shares to eligible directors, officers, employees or consultants. The maximum term of an option was five years. The exercise price of an option was not less than the closing price on the last trading day preceding the grant date, less allowable discounts in accordance with the policies of the TSX and the NYSE MKT. All options granted under the FSOP vested as follows: 20% upon each of 4 months, 8 months, 12 months, 15 months and 18 months after the date of grant. As of December 31, 2014, there were 1,915,000 stock options outstanding under the FSOP with a weighted-average exercise price of $7.37, all of which were exercisable. | ||||||||||||||||
On December 2, 2011, at the Annual General Meeting, our shareholders approved by way of an ordinary resolution the terms of a new plan, the RSOP, which established the maximum number of common shares which may be issued under the RSOP as a variable amount equal to 10% of the issued and outstanding common shares on a non-diluted basis. Under the RSOP, our Board of Directors may from time-to-time grant stock options to individual eligible directors, officers, employees or consultants. The maximum term of any stock option is ten years. The exercise price of a stock option is not less than the closing price on the last trading day preceding the grant date, less allowable discounts in accordance with the policies of the TSX and the NYSE MKT. The Board retains the discretion to impose vesting periods on any options granted. All options granted to date vest as follows: 20% upon each of 4 months, 8 months, 12 months, 15 months and 18 months after the date of grant. As of December 31, 2014, there were 2,430,500 stock options outstanding under the RSOP with a weighted-average exercise price of $3.42, of which 2,035,500 options were exercisable with a weighted-average exercise price of $3.81. | ||||||||||||||||
The fair value of stock option awards granted to directors, officers or employees of the Company are estimated on the grant date using the Black-Scholes option pricing model and the closing price of our common shares as quoted on either the TSX or NYSE MKT on the grant date. The significant assumptions used to estimate the fair value of stock option awards using the Black-Scholes model are as follows: | ||||||||||||||||
For the six-month period ended December 31, | For the fiscal year ended June 30, | |||||||||||||||
For the years ended | ||||||||||||||||
December 31, | ||||||||||||||||
2014 | 2013 | 2012 | 2012 | |||||||||||||
Risk-free interest rate | 0.93 – 0.99% | 0.59 – 0.75% | 0.35 - 0.39% | 0.12 - 0.36% | ||||||||||||
Expected volatility | 74 – 79% | 80 – 84% | 80% | 80% | ||||||||||||
Expected dividend yield | Nil | Nil | Nil | Nil | ||||||||||||
Expected term in years | 3.3 | 3 | 3 | 3.0 – 5.0 | ||||||||||||
Estimated forfeiture rate | 3.70% | 0 – 3.9% | 0% | 0% | ||||||||||||
The fair value of stock option awards granted to consultants of the Company is estimated on the vesting date using the Black-Scholes option pricing model and the closing price of our common shares as quoted on either the TSX or NYSE MKT on the vesting date. The significant assumptions used to estimate the fair value of stock option awards using the Black-Scholes models are as follows: | ||||||||||||||||
For the years ended December 31, | For the six-month period ended December 31, | For the fiscal year ended June 30, | ||||||||||||||
2014 | 2013 | 2012 | 2012 | |||||||||||||
Risk-free interest rate | 0.99% | 0.36 – 0.52 | 0.35 - 0.39 | 0.19 - 0.71% | ||||||||||||
Expected volatility | 74-79% | 80 - 84% | 80 - 109% | 80 - 113% | ||||||||||||
Expected dividend yield | Nil | Nil | Nil | Nil | ||||||||||||
Expected term in years | 3.3 | 3.0 – 5.0 | 3.0 – 5.0 | 3.0 – 5.0 | ||||||||||||
Estimated forfeiture rate | 3.70% | 0 – 3.9% | 0% | 0% | ||||||||||||
The following table summarizes stock option activity for each of the years ended December 31, 2014 and 2013, six-month period ended December 31, 2012 and for the fiscal year ended June 30, 2012: | ||||||||||||||||
For the years ended December 31, | For the six-month period ended December 31, | For the fiscal year ended June 30, | ||||||||||||||
2014 | 2013 | 2012 | 2012 | |||||||||||||
Number of Stock Options | Weighted Average Exercise Price | Number of Stock Options | Weighted Average Exercise Price | Number of Stock Options | Weighted Average Exercise Price | Number of Stock Options | Weighted Average Exercise Price | |||||||||
Outstanding, beginning of period | 4,700,500 | $5.51 | 4,331,000 | $ 6.42 | 4,331,000 | $ 5.84 | 3,136,500 | $ 6.16 | ||||||||
Granted | 275,000 | 1.28 | 622,500 | 1.59 | 610,000 | 3.97 | 1,616,000 | 6.05 | ||||||||
Exercised | -150,000 | 0.5 | - | - | -610,000 | 0.77 | -179,000 | 1.47 | ||||||||
Cancelled/Expired | -480,000 | 4.52 | -253,000 | 6.56 | - | - | -242,500 | 14.57 | ||||||||
Outstanding, end of period | 4,345,500 | $5.16 | 4,700,500 | $ 5.51 | 4,331,000 | $ 6.42 | 4,331,000 | $ 5.84 | ||||||||
Exercisable, end of period | 3,950,500 | $5.54 | 3,951,000 | $ 6.15 | 3,146,200 | $ 7.01 | 3,101,000 | $ 5.51 | ||||||||
Weighted-average fair value per share of options granted during period | $0.65 | $ 0.84 | $ 2.04 | $ 3.83 | ||||||||||||
The following table summarizes information about stock options outstanding and exercisable at December 31, 2014: | ||||||||||||||||
Outstanding Stock Options | Exercisable Stock Options | |||||||||||||||
Range of Exercise Prices | Number Outstanding | Weighted-Average Remaining Contractual Life (in years) | Weighted-Average Exercise Price | Number Exercisable | Weighted-Average Remaining Contractual Life (in years) | Weighted-Average Exercise Price | ||||||||||
$1.23 - $3.00 | 1,456,500 | 2.59 | $ 1.88 | 1,061,500 | 2 | $ 2.07 | ||||||||||
$3.01 - $6.00 | 1,533,000 | 2.27 | 4.54 | 1,533,000 | 2.27 | 4.54 | ||||||||||
$6.01 - $9.00 | 210,000 | 1.54 | 8.08 | 210,000 | 1.54 | 8.08 | ||||||||||
$9.01 - $12.00 | 975,000 | 1.21 | 9.04 | 975,000 | 1.21 | 9.04 | ||||||||||
$12.01 + | 171,000 | 1.03 | 13.05 | 171,000 | 1.03 | 13.05 | ||||||||||
4,345,500 | 2.05 | $ 5.16 | 3,950,000 | 1.84 | $ 5.54 | |||||||||||
A summary of stock option activity as of December 31, 2014 and changes during the year then ended are presented below. | ||||||||||||||||
Non-vested Stock Options | Number Outstanding | Weighted Average Grant Date Fair Value | ||||||||||||||
Non-vested at December 31, 2013 | 749,500 | $ 1.11 | ||||||||||||||
Granted | 275,000 | 0.65 | ||||||||||||||
Vested | -629,500 | 1.16 | ||||||||||||||
Expired | - | - | ||||||||||||||
Non-vested at December 31, 2014 | 395,000 | 0.71 | ||||||||||||||
The stock-based compensation cost recognized in our consolidated statements of operations and comprehensive loss for the years ended December 31, 2014 and 2013 was $517 and $1,378, respectively. The stock-based compensation cost recognized in our consolidated statements of operations and comprehensive loss for the six-month period ended December 31, 2012 was $1,637. The stock-based compensation cost recognized in our consolidated statements of loss and comprehensive loss for the fiscal year ended June 30, 2012 was $10,757. As at December 31, 2014, there was $85 of unrecognized compensation cost related to 395,000 unvested stock options. This cost is expected to be recognized over a weighted-average remaining period of approximately 0.55 years. The total intrinsic value of options exercised in each of the periods ended December 31, 2014, 2013 and 2012 and June 30, 2012 was $167, nil, $1,938, and $679, respectively. At December 31, 2014, there was no aggregate intrinsic value of outstanding and exercisable stock options. | ||||||||||||||||
Agents’ Options and Warrants | ||||||||||||||||
The Company issued to investors 1,338,688 warrants, each exercisable for one common share, in connection with the September 27, 2013 registered direct offering. The exercise price and exercise period of each warrant is $4.15 and three years, respectively. | ||||||||||||||||
In addition, the Company issued to an agent in connection with the September 27, 2013 financing 133,869 warrants, under the same terms as those issued to investors. The value of these warrants issued to non-employees for services was offset against the proceeds of the financing. The Company used a Black-Scholes model with inputs including a market price of the Company’s stock of $2.61, an exercise price of $4.15, a three-year term, volatility of 80.9%, a risk-free rate of 0.62% and assumed no dividends. The value of the warrants issued for services was estimated at $143. | ||||||||||||||||
The following table summarizes activity for agents’ options and warrants for the years ended December 31, 2014 and 2013, the six-month period ended December 31, 2012 and for the fiscal year ended June 30, 2012: | ||||||||||||||||
For the year ended | For the year ended | For the six-month period ended December 31, | For the fiscal year ended June 30, | |||||||||||||
December 31, | December 31, | |||||||||||||||
2014 | 2013 | 2012 | 2012 | |||||||||||||
Number of Agents' Options and Warrants | Weighted-Average Exercise Price (USD$) | Number of Agents' Options and Warrants | Weighted-Average Exercise Price (USD$) | Number of Agents' Options and Warrants | Weighted-Average Exercise Price (CDN$) | Number of Agents' Options and Warrants | Weighted-Average Exercise Price (CDN$) | |||||||||
Outstanding, beginning of period | 1,472,557 | $ 4.15 | - | $ - | 211,002 | $ 9.00 | 211,002 | $ 9.00 | ||||||||
Granted | - | - | 1,472,557 | 4.15 | - | - | - | - | ||||||||
Exercised | - | - | - | - | - | - | - | - | ||||||||
Expired | - | - | - | - | -211,002 | 9 | - | - | ||||||||
Outstanding, end of period | 1,472,557 | $ 4.15 | 1,472,557 | $ 4.15 | - | $ - | 211,002 | $ 9.00 | ||||||||
7_RELATED_PARTY_TRANSACTIONS
7. RELATED PARTY TRANSACTIONS | 12 Months Ended | ||
Dec. 31, 2014 | |||
Related Party Transactions [Abstract] | |||
7. RELATED PARTY TRANSACTIONS | During the year ended December 31, 2014: | ||
· | None. | ||
During the year ended December 31, 2013: | |||
· | $18 was paid to Donald E. Ranta for providing consulting services to the Company. Mr. Ranta served as Chairman of the Company’s Board of Directors until his resignation in June 2014. As of December 31, 2013, there were no outstanding amounts owed to Mr. Ranta. | ||
· | Mark Brown resigned from the Board of Directors on April 18, 2013. At that time, he ceased to be a related party, and the company he controlled also ceased to be a related party. During the period from January 1, 2013 to April 18, 2013, $16 was charged by Mark Brown’s private company for providing consulting services. | ||
During the six-month period ended December 31, 2012: | |||
· | $30 was paid to Donald E. Ranta for providing consulting services to the Company. As of December 31, 2012, there were no outstanding amounts owed to Mr. Ranta. | ||
· | Mark Brown was re-elected to the Board of Directors on Dec 11, 2012. During the period from December 11, 2012 to December 31, 2012, less than $1 was charged by Mark Brown’s private company for providing consulting services. | ||
During the fiscal year ended June 30, 2012: | |||
· | $83 was paid to Donald E. Ranta for providing consulting services to the Company. | ||
· | $21 was paid to Paul Schlauch for providing legal services to the Company. Mr. Schlauch serves as a director of Rare Element. | ||
Related party expenses are included in corporate general and administrative expenses on our Consolidated Statements of Operations and Comprehensive Loss. Related party transactions were in the normal course of operations and are measured at fair value. |
8_INCOME_TAX
8. INCOME TAX | 12 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
Income Tax Disclosure [Abstract] | |||||||||||
INCOME TAX | We recognize future tax assets and liabilities for each tax jurisdiction based on the difference between the financial reporting and tax bases of assets and liabilities using the enacted tax rates expected to be in effect when the taxes are paid or recovered. A valuation allowance is provided against net future tax assets for which we do not consider the realization of such assets to meet the required "more likely than not" standard. | ||||||||||
Our future tax assets and liabilities at December 31, 2014 and 2013 include the following components: | |||||||||||
As of December 31, | As of December 31, | ||||||||||
2014 | 2013 | ||||||||||
Deferred tax assets: | |||||||||||
Current: | |||||||||||
Accrued vacation | $ 39 | $ 34 | |||||||||
Reclamation provision | 57 | 70 | |||||||||
Derivative transactions | - | 35 | |||||||||
96 | 139 | ||||||||||
Non-Current: | |||||||||||
Noncapital loss carryforwards, Canada | 2,546 | 2,316 | |||||||||
Capital loss carryforwards, Canada | 7 | 3 | |||||||||
Net operating loss carryforwards, U.S. | 11,053 | 8,122 | |||||||||
Mineral properties | 14,244 | 13,421 | |||||||||
Share issue costs | - | - | |||||||||
Reclamation provision | 69 | 72 | |||||||||
Equipment | 115 | 74 | |||||||||
Share based compensation | 4,020 | 4,047 | |||||||||
Research and development | 1,882 | 1,186 | |||||||||
Other | - | - | |||||||||
33,936 | 29,241 | ||||||||||
Deferred tax assets | 34,032 | 29,380 | |||||||||
Valuation allowance | -34,032 | -29,380 | |||||||||
Net | $ - | $ - | |||||||||
Deferred tax liabilities: | |||||||||||
Non-Current: | |||||||||||
Other | - | - | |||||||||
Deferred tax liabilities | - | - | |||||||||
Net deferred tax asset/(liability) | - | - | |||||||||
The composition of our valuation allowance by tax jurisdiction is summarized as follows: | |||||||||||
As of December 31, | |||||||||||
2014 | 2013 | ||||||||||
Canada | $ 3,055 | $ 2,756 | |||||||||
United States | 30,977 | 26,624 | |||||||||
Total valuation allowance | $ 34,032 | $ 29,380 | |||||||||
The valuation allowance increased $4,652 from the period ended December 31, 2013 to the calendar year ended December 31, 2014 and $6,452 from the fiscal year ended December 31, 2012 to the period ended December 31, 2013. This was the result of an increase in the net deferred tax assets, primarily net operating loss carryforwards ("NOLs"), equity compensation for U.S. residents, exploration spending on mineral properties, research and experimental spending, and change in tax rates. Because we are unable to determine whether it is more likely than not that the net deferred tax assets will be realized, we continue to record a 100% valuation against the net deferred tax assets. | |||||||||||
At December 31, 2014, we had U.S. net operating loss carryforwards of approximately $34,486, which expire from 2018 to 2034. In addition, we had Canadian non-capital loss carryforwards of approximately CDN$9,792, which expire from 2015 to 2034. As of December 31, 2014, there were Canadian capital loss carryforwards of CDN$59. A full valuation allowance has been recorded against the tax effected U.S. and Canadian loss carryforwards as we do not consider realization of such assets to meet the required 'more likely than not' standard. | |||||||||||
Section 382 of the Internal Revenue Code could apply and limit our ability to utilize a portion of the U.S. net operating loss carryforwards. No Section 382 study has been completed; therefore, the actual usage of U.S. net operating loss carryforwards has not been determined. | |||||||||||
Deferred tax assets relating to equity compensation have been reduced to reflect tax deductions in excess of previously recorded tax benefits through the year ended December 31, 2014. Our NOL carryforwards referenced above at December 31, 2014, 2013 and 2012 include $538 of income tax deductions in excess of previously recorded tax benefits. Although these additional tax deductions are reflected in the NOL carryforwards referenced above, the related tax benefit of $140 will not be recognized until the deductions reduce taxes payable. Accordingly, since the tax benefit does not reduce our current taxes payable for the periods ending December 31, 2014, 2013 or 2012, these tax benefits are not reflected in the deferred tax assets presented above. The tax benefit of these excess deductions will be reflected as a credit to additional paid-in capital when recognized. | |||||||||||
For financial reporting purposes, income/(loss) from continuing operations before income taxes consists of the following components: | |||||||||||
For the years ended December 31, | For the six-month period ended | For the fiscal year ended | |||||||||
December 31, | June 30, | ||||||||||
2014 | 2013 | 2012 | 2012 | ||||||||
Canada | $ (623) | $ (1,038) | $ 457 | $ (15,572) | |||||||
United States | -13,406 | -21,208 | -15,887 | -19,422 | |||||||
$ (14,029) | $ (22,246) | $ (15,430) | $ (34,994) | ||||||||
The provision for income taxes includes the following components: | |||||||||||
As of December 31, | |||||||||||
2014 | 2013 | ||||||||||
Current | |||||||||||
Canada | $ - | $ - | |||||||||
United States | - | - | |||||||||
- | - | ||||||||||
Deferred | |||||||||||
Canada | $ - | $ - | |||||||||
United States | - | - | |||||||||
- | - | ||||||||||
Income tax expense (recovery) | $ - | $ - | |||||||||
A reconciliation of expected income tax on net income at statutory rates is as follows: | |||||||||||
As of December 31, | As of December 31, | As of December 31, | As of June 30, | ||||||||
2014 | 2013 | 2012 | 2012 | ||||||||
Net income (loss) | $ (14,029) | $ (22,246) | $ (15,430) | $ (34,994) | |||||||
Statutory tax rate | 26.00% | 25.75% | 25.00% | 25.00% | |||||||
Tax expense (recovery) at statutory rate | -3,648 | -5,728 | -3,857 | -8,749 | |||||||
Foreign tax rates | -928 | -1,372 | -1,695 | -2,911 | |||||||
Change in tax rates | 27 | 162 | -1,067 | -9 | |||||||
Share issuance costs amortization | -220 | -243 | -91 | 300 | |||||||
Stock-based compensation | 155 | 391 | -2,617 | 2,689 | |||||||
Nondeductible expenses | 5 | 8 | 10 | 669 | |||||||
Prior year true-up for loss carryovers | 20 | 851 | -231 | -353 | |||||||
Prior year true-up for property basis adjustments | -63 | -521 | 246 | -2,876 | |||||||
Unrecognized benefit of non-capital losses | - | - | - | - | |||||||
Other | - | 0 | 1 | 4 | |||||||
Change in valuation allowance | 4,652 | 6,452 | 9,301 | 11,236 | |||||||
Income tax expense (recovery) | $ - | $ - | $ - | $ - | |||||||
We do not have any unrecognized income tax benefits. Should we incur interest and penalties relating to tax uncertainties, such amounts would be classified as a component of the interest expense and operating expense, respectively. | |||||||||||
Rare Element and its wholly-owned subsidiary, Rare Element Resources Holdings, Ltd., file income tax returns in the Canadian federal jurisdiction and provincial jurisdictions, and its wholly-owned subsidiary, Rare Element Resources, Inc., files in the U.S. federal jurisdiction and various state jurisdictions. The years still open for audit are generally the current year plus the previous three. However, because we have NOLs carrying forward, certain items attributable to closed tax years are still subject to adjustment by applicable taxing authorities through an adjustment to tax losses carried forward to open years. |
9_COMMITMENTS_AND_CONTINGENCIE
9. COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Dec. 31, 2014 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | Restricted cash |
On August 28, 2012, the Company received notification from the Wyoming Department of Environmental Quality (“WDEQ”) that the WDEQ had accepted a surety bond in the amount of $430 for our required reclamation program for land disturbances that occur during our exploration programs at the Bear Lodge REE Project. Upon acceptance, the WDEQ released the previously restricted funds back to the Company. The surety bond does not require the Company to restrict any cash as collateral. As such, the $422 discussed below and previously recorded as restricted cash was reclassified to cash and cash equivalents during the six-month period ended December 31, 2012. | |
Potential environmental contingency | |
Our exploration and development activities are subject to various federal and state laws and regulations governing the protection of the environment. These laws and regulations are continually changing and generally becoming more restrictive. The Company conducts its operations so as to protect public health and the environment and believes its operations are materially in compliance with all applicable laws and regulations. We have made, and expect to make in the future, expenditures to comply with such laws and regulations. The ultimate amount of reclamation and other future site-restoration costs to be incurred for existing mining interests is uncertain. |
10_SUPPLEMENTAL_DISCLOSURE_WIT
10. SUPPLEMENTAL DISCLOSURE WITH RESPECT TO CASH FLOWS | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Supplemental Cash Flow Elements [Abstract] | ||||||||
SUPPLEMENTAL DISCLOSURE WITH RESPECT TO CASH FLOWS | Supplemental cash flow information for the respective periods is as follows: | |||||||
For the years ended December 31, | For the six-month | For the fiscal year ended June 30, | ||||||
period ended | ||||||||
December 31, | ||||||||
2014 | 2013 | 2012 | 2012 | |||||
Other Information | $ 77 | $ 531 | $ 178 | $ 494 | ||||
Interest received | ||||||||
11_RETIREMENT_PLAN
11. RETIREMENT PLAN | 12 Months Ended |
Dec. 31, 2014 | |
Compensation and Retirement Disclosure [Abstract] | |
RETIREMENT PLAN | Beginning on January 1, 2012, the Company began sponsoring a qualified tax-deferred savings plan in accordance with the provisions of Section 401(k) of the U.S. Internal Revenue Code, which is available to permanent, full-time U.S. employees after the first day of the month following their hire date. Employees can contribute up to 100% of their compensation, but not to exceed the maximum allowable contribution amount under IRS rules. We match 100% of an employee’s contributions up to 3% and 50% of an employee’s contribution between 3% and 5% for a total contribution of up to 4%. The Company’s contributions vest immediately. Our expense to match employee contributions made during the years ended December 31, 2014 and 2013, the six months ended December 31, 2012 and the fiscal year ended June 30, 2012 was $86, $95, $45 and $28, respectively. |
12_SEGMENTED_INFORMATION
12. SEGMENTED INFORMATION | 12 Months Ended |
Dec. 31, 2014 | |
Segment Reporting [Abstract] | |
SEGMENTED INFORMATION | The Company operates in a single reportable operating segment, being the exploration of mineral properties. |
13_QUARTERLY_FINANCIAL_INFORMA
13. QUARTERLY FINANCIAL INFORMATION (UNAUDITED) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Quarterly Financial Information Disclosure [Abstract] | |||||||||
QUARTERLY FINANCIAL INFORMATION (UNAUDITED) | Summarized quarterly results for the years ended December 31, 2014 and 2013, the six-month period ended December 31, 2012 and for the fiscal year ended June 30, 2012 are as follows (in thousands, except per share amounts): | ||||||||
For the year ended December 31, 2014 | |||||||||
4th Quarter | 3rd Quarter | 2nd Quarter | 1st Quarter | ||||||
Total revenue | $ - | $ - | $ - | $ - | |||||
Net loss | $ (2,937) | $ (3,601) | $ (3,060) | $ (4,431) | |||||
Basic and diluted loss per share | $ (0.06) | $ (0.08) | $ (0.06) | $ (0.09) | |||||
For the year ended December 31, 2013 | |||||||||
4th Quarter | 3rd Quarter | 2nd Quarter | 1st Quarter | ||||||
Total revenue | $ - | $ - | $ - | $ - | |||||
Net loss | $ (5,739) | $ (6,855) | $ (5,257) | $ (4,395) | |||||
Basic and diluted loss per share | $ (0.12) | $ (0.15) | $ (0.12) | $ (0.10) | |||||
For the six-month period ended December 31, 2012 | |||||||||
2nd Quarter | 1st Quarter | ||||||||
Total revenue | $ - | $ - | |||||||
Net loss | $ (9,572) | $ (5,858) | |||||||
Basic and diluted loss per share | $ (0.22) | $ (0.13) | |||||||
For the fiscal year ended June 30, 2012 | |||||||||
4th Quarter | 3rd Quarter | 2nd Quarter | 1st Quarter | ||||||
Total revenue | $ - | $ - | $ - | $ - | |||||
Net loss | $ (8,616) | $ (5,317) | $ (10,127) | $ (10,934) | |||||
Basic and diluted loss per share | $ (0.19) | $ (0.12) | $ (0.23) | $ (0.25) | |||||
3_SUMMARY_OF_SIGNIFICANT_ACCOU1
3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Accounting Policies [Abstract] | |||||||||
Use of estimates | The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of expenses during the reporting period. Actual results could differ from those estimates. The amounts which involve significant estimates include asset retirement obligations, stock-based compensation, derivative liabilities, and impairments. | ||||||||
Cash and cash equivalents | Cash and cash equivalents consist of cash and liquid investments with an original maturity of three months or less. At December 31, 2014 and 2013, cash and cash equivalents consisted of $10,139 and $23,902, respectively, of funds held in bank accounts with financial institutions in both Canada and the U.S. | ||||||||
Short-term investments | Short-term investments generally represent investments in guaranteed interest contracts and time deposits which have original maturities in excess of three months but less than twelve months. These investments are accounted for at amortized cost. | ||||||||
Marketable Securities | Marketable securities include our investments in shares of publicly traded companies. These investments have been categorized as available-for-sale financial instruments and are carried at fair value. Adjustments to fair value are recorded in other comprehensive income/(loss) unless there is a sustained loss in value that is deemed to be other- than-temporary, in which case the adjustment to fair value is included in income and not reversed on future fair value changes. | ||||||||
Mineral properties | Mineral property acquisition costs, including indirectly related acquisition costs, are capitalized when incurred. Acquisition costs include cash consideration and the fair-market value of common shares issued as consideration. Properties acquired under option agreements, whereby payments are made at the sole discretion of the Company, are capitalized as mineral property acquisition costs at such time as the payments are made. Exploration costs are expensed as incurred. When it is determined that a mining deposit can be economically and legally extracted or produced based on established proven and probable reserves under SEC Industry Guide 7, development costs related to such reserves incurred after such determination will be considered for capitalization. The establishment of proven and probable reserves is based on results of feasibility studies which indicate whether a property is economically feasible. Upon commencement of commercial production, capitalized costs will be amortized over their estimated useful lives or units of production, whichever is a more reliable measure. Capitalized amounts relating to a property that is abandoned or otherwise considered uneconomic for the foreseeable future will be written off. | ||||||||
Restricted cash | The Company maintains at times cash deposits and/or surety bonds, as required by regulatory bodies as assurance for the funding of future reclamation costs associated with the Company’s asset retirement obligation. These funds held in cash deposits and/or used as collateral for surety bonds are restricted to that purpose and are not available for the Company’s use until the reclamation obligations have been fulfilled. Restricted cash is classified as a non-current asset. | ||||||||
Asset retirement obligations | Our mining and exploration activities are subject to various laws and regulations, including legal and contractual obligations to reclaim, remediate, or otherwise restore properties at the time the property is removed from service. Asset retirement obligations are recognized when incurred and recorded as liabilities at fair value. The reclamation obligation is based on when spending for an existing disturbance will occur. We reclaim the disturbance from our exploration programs on an ongoing basis and therefore the portion of our asset retirement obligation corresponding to our exploration programs will be settled in the near term and is classified as a current liability. The remaining reclamation associated with environmental monitoring programs is classified as a long-term liability; however, because we have not declared proven and probable reserves under SEC Industry Guide 7, the timing of these reclamation activities is uncertain. The fair value of the outstanding liability at the end of the period approximates the cost of the asset retirement obligation. For exploration stage properties that do not qualify for asset capitalization, the costs associated with the obligation are charged to operations. For development and production stage properties, the costs will be added to the capitalized costs of the property and amortized using the units-of-production method. We review, on a quarterly basis, unless otherwise deemed necessary, the asset retirement obligation in connection with the Bear Lodge REE Property. | ||||||||
Asset retirement obligations are secured by surety bonds held for the benefit of the state of Wyoming in amounts determined by applicable federal and state regulatory agencies. | |||||||||
Changes in our current and non-current asset retirement obligations are summarized in the following table: | |||||||||
Year ended December 31, | Year ended December 31, | Six months ended December 31, | Year ended June 30, | ||||||
2014 | 2013 | 2012 | 2012 | ||||||
Balance, beginning of period | $ 415 | $ 389 | $ 435 | $ 101 | |||||
Additions | 19 | 54 | 116 | ||||||
Releases | -66 | -30 | -178 | ||||||
Revisions to cost estimates | -2 | 2 | 16 | 334 | |||||
Balance, end of period | $ 366 | $ 415 | $ 389 | $ 435 | |||||
Derivative instruments | From time to time, the Company may use derivative financial instruments to manage its foreign currency risks. All derivative financial instruments are classified as current liabilities and are accounted for at trade date. Embedded derivatives are separated from the host contract and accounted for separately if the economic characteristics and risks of the host contract and the embedded derivative are not closely related. The Company re-measures all derivative financial instruments as of the date of the balance sheet based on fair values derived from option pricing models. Gains or losses arising from changes in fair value of derivatives are recognized in the Consolidated Statements of Loss, except for derivatives that are highly effective and qualify for cash flow or net investment hedge accounting. The Company does not have any derivatives that are highly effective and qualify for cash flow or net investment hedging. There were no derivatives outstanding as of December 31, 2014. | ||||||||
Common shares | Common shares issued for non-monetary consideration are recorded at fair market value based upon the trading price of our shares on the TSX or the NYSE MKT on the share issuance date. Common shares issued for monetary consideration are recorded at the amount received, less issuance costs. | ||||||||
Foreign currency translation | Our functional currency is the U.S. dollar. All of our foreign subsidiaries are direct and integral components of the Company and are dependent upon the economic environment of our functional currency. Therefore, the functional currency of our foreign entities is considered to be the U.S. dollar in accordance with ASC Topic 830, “Foreign Currency Matters,” and accordingly, translation gains and losses are reported in the loss for that period. Assets and liabilities of these foreign operations are translated using period-end exchange rates and revenues and expenses are translated using average exchange rates during each period. | ||||||||
Depreciation | Depreciation is based on the straight-line method. We depreciate computer equipment, furniture and fixtures and geological equipment over a period of three years. We depreciate vehicles over a period of five years. | ||||||||
Stock-based compensation | The fair value of share-based compensation awards issued to employees and directors of the Company is measured at the date of grant and amortized over the requisite service period, which is generally the vesting period. The Company uses the Black-Scholes option valuation model to calculate the fair value of awards granted. | ||||||||
The fair value of share-based compensation awards issued to non-employees is determined on the measurement date of such awards. The measurement date is typically the vesting date. Upon vesting, the fair value of share-based compensation awards issued to non-employees is calculated using the Black-Scholes option valuation model, and the amount is recorded as an expense with a corresponding increase in additional paid-in-capital. | |||||||||
When a share-based compensation award is exercised and the resulting common shares are issued, the fair value of such award as determined on the date of grant or date of vesting (in the case of a non-employee exercise) is transferred to common shares. In the case of a share-based compensation award that is either cancelled or forfeited prior to vesting, the amortized expense associated with the unvested awards is reversed. | |||||||||
Income taxes | The Company accounts for income taxes under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. Under the asset and liability method, the effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. A valuation allowance is recognized if it is more likely than not that the entire or some portion of the deferred tax asset will not be recognized. | ||||||||
Loss per share | The loss per share is computed using the weighted average number of shares outstanding during the period. To calculate diluted loss per share, the Company uses the treasury stock method and the if-converted method. Diluted loss per share is not presented as the effect on the basic loss per share would be anti-dilutive. At December 31, 2014, 2013 and 2012 and at June 30, 2012, we had 5,818,057; 6,173,057; 4,331,000 and 4,542,002 in potentially dilutive securities, respectively. | ||||||||
Fair value of financial instruments | Our financial instruments may at times consist of cash and cash equivalents, short-term investments, marketable securities, accounts receivable, restricted cash, derivative liabilities, accounts payable and accrued liabilities. U.S. GAAP defines fair value as the price that would be received to sell an asset or be paid to transfer a liability in an orderly transaction between market participants at the measurement date (exit price) and establishes a fair-value hierarchy that prioritizes the inputs used to measure fair value using the following definitions (from highest to lowest priority): | ||||||||
Level 1 — Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities. | |||||||||
Level 2 — Observable inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly, including quoted prices for similar assets and liabilities in active markets; quoted prices for identical or similar assets and liabilities in markets that are not active; or other inputs that are observable or can be corroborated by observable market data by correlation or other means. | |||||||||
Level 3 — Prices or valuation techniques requiring inputs that are both significant to the fair-value measurement and unobservable. | |||||||||
The Company continually monitors its cash positions with, and the credit quality of, the financial institutions with which it invests. The Company maintains balances in various U.S. financial institutions in excess of U.S. federally insured limits. | |||||||||
The Company had no embedded derivatives as of December 31, 2014. Included within accounts payable, and other accrued liabilities at December 31, 2013 and 2012 is an embedded derivative that has been accounted for in accordance with the Company’s accounting policy as described above. This embedded derivative represents a foreign currency option that the Company sells within an enhanced yield deposit account that has been included in cash and cash equivalents. The fair value of the derivative liability associated with this embedded derivative instrument is shown separately as a liability in the table below. | |||||||||
The following table presents information about financial instruments recognized at fair value on a recurring basis as of December 31, 2014 and 2013, and indicates the fair value hierarchy: | |||||||||
31-Dec-14 | 31-Dec-13 | ||||||||
Level 1 | Level 2 | Total | Level 1 | Level 2 | Total | ||||
Assets | |||||||||
Cash and cash equivalents | $10,139 | $ - | $10,139 | $23,902 | $ - | $23,902 | |||
Short-term investments | - | - | - | - | - | - | |||
Marketable securities | - | - | - | - | - | - | |||
Total financial assets | $10,139 | $ - | $10,139 | $23,902 | $ - | $23,902 | |||
Liabilities | |||||||||
Accounts payable and other accrued liabilities | $ 1,098 | $ - | $ 1,098 | $ 1,425 | $ - | $ 1,425 | |||
Asset retirement obligation | - | 366 | 366 | - | 415 | 415 | |||
Derivative liabilities | - | - | - | - | 103 | 103 | |||
Total financial assets and liabilities | $11,237 | $ 366 | $11,603 | $25,327 | $ 518 | $25,845 | |||
Derivative liabilities noted above are included within accounts payable and other accrued liabilities as presented on the Consolidated Balance Sheets. |
3_SUMMARY_OF_SIGNIFICANT_ACCOU2
3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Accounting Policies [Abstract] | |||||||||
Current and non-current asset retirement obligations | Year ended December 31, | Year ended December 31, | Six months ended December 31, | Year ended June 30, | |||||
2014 | 2013 | 2012 | 2012 | ||||||
Balance, beginning of period | $ 415 | $ 389 | $ 435 | $ 101 | |||||
Additions | 19 | 54 | 116 | ||||||
Releases | -66 | -30 | -178 | ||||||
Revisions to cost estimates | -2 | 2 | 16 | 334 | |||||
Balance, end of period | $ 366 | $ 415 | $ 389 | $ 435 | |||||
Financial instruments recognized at fair value on a recurring basis | 31-Dec-14 | 31-Dec-13 | |||||||
Level 1 | Level 2 | Total | Level 1 | Level 2 | Total | ||||
Assets | |||||||||
Cash and cash equivalents | $10,139 | $ - | $10,139 | $23,902 | $ - | $23,902 | |||
Short-term investments | - | - | - | - | - | - | |||
Marketable securities | - | - | - | - | - | - | |||
Total financial assets | $10,139 | $ - | $10,139 | $23,902 | $ - | $23,902 | |||
Liabilities | |||||||||
Accounts payable and other accrued liabilities | $ 1,098 | $ - | $ 1,098 | $ 1,425 | $ - | $ 1,425 | |||
Asset retirement obligation | - | 366 | 366 | - | 415 | 415 | |||
Derivative liabilities | - | - | - | - | 103 | 103 | |||
Total financial assets and liabilities | $11,237 | $ 366 | $11,603 | $25,327 | $ 518 | $25,845 | |||
5_EQUIPMENT_AND_LAND_Tables
5. EQUIPMENT AND LAND (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Property, Plant and Equipment [Abstract] | ||||||||
SCHEDULE OF EQUIPMENT AND LAND | December 31, | December 31, | ||||||
2014 | 2013 | |||||||
Cost | Accumulated depreciation | Net book value | Cost | Accumulated depreciation | Net book value | |||
Computer equipment | $ 189 | $ 168 | $ 21 | $ 169 | $ 118 | $ 51 | ||
Furniture | 111 | 64 | 47 | 111 | 48 | 63 | ||
Geological equipment | 488 | 319 | 169 | 488 | 217 | 271 | ||
Vehicles | 221 | 114 | 107 | 208 | 72 | 136 | ||
$ 1,009 | $ 665 | $ 344 | $ 976 | $ 455 | $ 521 | |||
6_ADDITIONAL_PAIDIN_CAPITAL_Ta
6. ADDITIONAL PAID-IN CAPITAL (Tables) | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
Additional Paid in Capital [Abstract] | ||||||||||||||||
Fair value assumptions | For the six-month period ended December 31, | For the fiscal year ended June 30, | ||||||||||||||
For the years ended | ||||||||||||||||
December 31, | ||||||||||||||||
2014 | 2013 | 2012 | 2012 | |||||||||||||
Risk-free interest rate | 0.93 – 0.99% | 0.59 – 0.75% | 0.35 - 0.39% | 0.12 - 0.36% | ||||||||||||
Expected volatility | 74 – 79% | 80 – 84% | 80% | 80% | ||||||||||||
Expected dividend yield | Nil | Nil | Nil | Nil | ||||||||||||
Expected term in years | 3.3 | 3 | 3 | 3.0 – 5.0 | ||||||||||||
Estimated forfeiture rate | 3.70% | 0 – 3.9% | 0% | 0% | ||||||||||||
For the years ended December 31, | For the six-month period ended December 31, | For the fiscal year ended June 30, | ||||||||||||||
2014 | 2013 | 2012 | 2012 | |||||||||||||
Risk-free interest rate | 0.99% | 0.36 – 0.52 | 0.35 - 0.39 | 0.19 - 0.71% | ||||||||||||
Expected volatility | 74-79% | 80 - 84% | 80 - 109% | 80 - 113% | ||||||||||||
Expected dividend yield | Nil | Nil | Nil | Nil | ||||||||||||
Expected term in years | 3.3 | 3.0 – 5.0 | 3.0 – 5.0 | 3.0 – 5.0 | ||||||||||||
Estimated forfeiture rate | 3.70% | 0 – 3.9% | 0% | 0% | ||||||||||||
Stock option activity | For the years ended December 31, | For the six-month period ended December 31, | For the fiscal year ended June 30, | |||||||||||||
2014 | 2013 | 2012 | 2012 | |||||||||||||
Number of Stock Options | Weighted Average Exercise Price | Number of Stock Options | Weighted Average Exercise Price | Number of Stock Options | Weighted Average Exercise Price | Number of Stock Options | Weighted Average Exercise Price | |||||||||
Outstanding, beginning of period | 4,700,500 | $5.51 | 4,331,000 | $ 6.42 | 4,331,000 | $ 5.84 | 3,136,500 | $ 6.16 | ||||||||
Granted | 275,000 | 1.28 | 622,500 | 1.59 | 610,000 | 3.97 | 1,616,000 | 6.05 | ||||||||
Exercised | -150,000 | 0.5 | - | - | -610,000 | 0.77 | -179,000 | 1.47 | ||||||||
Cancelled/Expired | -480,000 | 4.52 | -253,000 | 6.56 | - | - | -242,500 | 14.57 | ||||||||
Outstanding, end of period | 4,345,500 | $5.16 | 4,700,500 | $ 5.51 | 4,331,000 | $ 6.42 | 4,331,000 | $ 5.84 | ||||||||
Exercisable, end of period | 3,950,500 | $5.54 | 3,951,000 | $ 6.15 | 3,146,200 | $ 7.01 | 3,101,000 | $ 5.51 | ||||||||
Weighted-average fair value per share of options granted during period | $0.65 | $ 0.84 | $ 2.04 | $ 3.83 | ||||||||||||
Stock options outstanding | Outstanding Stock Options | Exercisable Stock Options | ||||||||||||||
Range of Exercise Prices | Number Outstanding | Weighted-Average Remaining Contractual Life (in years) | Weighted-Average Exercise Price | Number Exercisable | Weighted-Average Remaining Contractual Life (in years) | Weighted-Average Exercise Price | ||||||||||
$1.23 - $3.00 | 1,456,500 | 2.59 | $ 1.88 | 1,061,500 | 2 | $ 2.07 | ||||||||||
$3.01 - $6.00 | 1,533,000 | 2.27 | 4.54 | 1,533,000 | 2.27 | 4.54 | ||||||||||
$6.01 - $9.00 | 210,000 | 1.54 | 8.08 | 210,000 | 1.54 | 8.08 | ||||||||||
$9.01 - $12.00 | 975,000 | 1.21 | 9.04 | 975,000 | 1.21 | 9.04 | ||||||||||
$12.01 + | 171,000 | 1.03 | 13.05 | 171,000 | 1.03 | 13.05 | ||||||||||
4,345,500 | 2.05 | $ 5.16 | 3,950,000 | 1.84 | $ 5.54 | |||||||||||
Options and warrants | For the year ended | For the year ended | For the six-month period ended December 31, | For the fiscal year ended June 30, | ||||||||||||
December 31, | December 31, | |||||||||||||||
2014 | 2013 | 2012 | 2012 | |||||||||||||
Number of Agents' Options and Warrants | Weighted-Average Exercise Price (USD$) | Number of Agents' Options and Warrants | Weighted-Average Exercise Price (USD$) | Number of Agents' Options and Warrants | Weighted-Average Exercise Price (CDN$) | Number of Agents' Options and Warrants | Weighted-Average Exercise Price (CDN$) | |||||||||
Outstanding, beginning of period | 1,472,557 | $ 4.15 | - | $ - | 211,002 | $ 9.00 | 211,002 | $ 9.00 | ||||||||
Granted | - | - | 1,472,557 | 4.15 | - | - | - | - | ||||||||
Exercised | - | - | - | - | - | - | - | - | ||||||||
Expired | - | - | - | - | -211,002 | 9 | - | - | ||||||||
Outstanding, end of period | 1,472,557 | $ 4.15 | 1,472,557 | $ 4.15 | - | $ - | 211,002 | $ 9.00 | ||||||||
Non-vested Stock option activity | Non-vested Stock Options | Number Outstanding | Weighted Average Grant Date Fair Value | |||||||||||||
Non-vested at December 31, 2013 | 749,500 | $ 1.11 | ||||||||||||||
Granted | 0.65 | |||||||||||||||
Vested | -629,500 | 1.16 | ||||||||||||||
Expired | - | - | ||||||||||||||
Non-vested at December 31, 2014 | 395,000 | 0.71 |
8_INCOME_TAX_Tables
8. INCOME TAX (Tables) | 12 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
Income Tax Disclosure [Abstract] | |||||||||||
Deferred tax assets and liabilities | As of December 31, | As of December 31, | |||||||||
2014 | 2013 | ||||||||||
Deferred tax assets: | |||||||||||
Current: | |||||||||||
Accrued vacation | $ 39 | $ 34 | |||||||||
Reclamation provision | 57 | 70 | |||||||||
Derivative transactions | - | 35 | |||||||||
96 | 139 | ||||||||||
Non-Current: | |||||||||||
Noncapital loss carryforwards, Canada | 2,546 | 2,316 | |||||||||
Capital loss carryforwards, Canada | 7 | 3 | |||||||||
Net operating loss carryforwards, U.S. | 11,053 | 8,122 | |||||||||
Mineral properties | 14,244 | 13,421 | |||||||||
Share issue costs | - | - | |||||||||
Reclamation provision | 69 | 72 | |||||||||
Equipment | 115 | 74 | |||||||||
Share based compensation | 4,020 | 4,047 | |||||||||
Research and development | 1,882 | 1,186 | |||||||||
Other | - | - | |||||||||
33,936 | 29,241 | ||||||||||
Deferred tax assets | 34,032 | 29,380 | |||||||||
Valuation allowance | -34,032 | -29,380 | |||||||||
Net | $ - | $ - | |||||||||
Deferred tax liabilities: | |||||||||||
Non-Current: | |||||||||||
Other | - | - | |||||||||
Deferred tax liabilities | - | - | |||||||||
Net deferred tax asset/(liability) | - | - | |||||||||
Valuation allowance by tax jurisdiction | As of December 31, | ||||||||||
2014 | 2013 | ||||||||||
Canada | $ 3,055 | $ 2,756 | |||||||||
United States | 30,977 | 26,624 | |||||||||
Total valuation allowance | $ 34,032 | $ 29,380 | |||||||||
Income/(loss) from continuing operations before income taxes | For the years ended December 31, | For the six-month period ended | For the fiscal year ended | ||||||||
December 31, | June 30, | ||||||||||
2014 | 2013 | 2012 | 2012 | ||||||||
Canada | $ (623) | $ (1,038) | $ 457 | $ (15,572) | |||||||
United States | -13,406 | -21,208 | -15,887 | -19,422 | |||||||
$ (14,029) | $ (22,246) | $ (15,430) | $ (34,994) | ||||||||
Income tax provision | As of December 31, | ||||||||||
2014 | 2013 | ||||||||||
Current | |||||||||||
Canada | $ - | $ - | |||||||||
United States | - | - | |||||||||
- | - | ||||||||||
Deferred | |||||||||||
Canada | $ - | $ - | |||||||||
United States | - | - | |||||||||
- | - | ||||||||||
Income tax expense (recovery) | $ - | $ - | |||||||||
Income tax reconciliation | As of December 31, | As of December 31, | As of December 31, | As of June 30, | |||||||
2014 | 2013 | 2012 | 2012 | ||||||||
Net income (loss) | $ (14,029) | $ (22,246) | $ (15,430) | $ (34,994) | |||||||
Statutory tax rate | 26.00% | 25.75% | 25.00% | 25.00% | |||||||
Tax expense (recovery) at statutory rate | -3,648 | -5,728 | -3,857 | -8,749 | |||||||
Foreign tax rates | -928 | -1,372 | -1,695 | -2,911 | |||||||
Change in tax rates | 27 | 162 | -1,067 | -9 | |||||||
Share issuance costs amortization | -220 | -243 | -91 | 300 | |||||||
Stock-based compensation | 155 | 391 | -2,617 | 2,689 | |||||||
Nondeductible expenses | 5 | 8 | 10 | 669 | |||||||
Prior year true-up for loss carryovers | 20 | 851 | -231 | -353 | |||||||
Prior year true-up for property basis adjustments | -63 | -521 | 246 | -2,876 | |||||||
Unrecognized benefit of non-capital losses | - | - | - | - | |||||||
Other | - | 0 | 1 | 4 | |||||||
Change in valuation allowance | 4,652 | 6,452 | 9,301 | 11,236 | |||||||
Income tax expense (recovery) | $ - | $ - | $ - | $ - | |||||||
10_SUPPLEMENTAL_DISCLOSURE_WIT1
10. SUPPLEMENTAL DISCLOSURE WITH RESPECT TO CASH FLOWS (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Supplemental Cash Flow Elements [Abstract] | ||||||||
Supplemental cash flow information | For the years ended December 31, | For the six-month | For the fiscal year ended June 30, | |||||
period ended | ||||||||
December 31, | ||||||||
2014 | 2013 | 2012 | 2012 | |||||
Other Information | $ 77 | $ 531 | $ 178 | $ 494 | ||||
Interest received | ||||||||
13_QUARTERLY_FINANCIAL_INFORMA1
13. QUARTERLY FINANCIAL INFORMATION (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Quarterly Financial Information Disclosure [Abstract] | |||||||||
Summarized quarterly results | For the year ended December 31, 2014 | ||||||||
4th Quarter | 3rd Quarter | 2nd Quarter | 1st Quarter | ||||||
Total revenue | $ - | $ - | $ - | $ - | |||||
Net loss | $ (2,937) | $ (3,601) | $ (3,060) | $ (4,431) | |||||
Basic and diluted loss per share | $ (0.06) | $ (0.08) | $ (0.06) | $ (0.09) | |||||
For the year ended December 31, 2013 | |||||||||
4th Quarter | 3rd Quarter | 2nd Quarter | 1st Quarter | ||||||
Total revenue | $ - | $ - | $ - | $ - | |||||
Net loss | $ (5,739) | $ (6,855) | $ (5,257) | $ (4,395) | |||||
Basic and diluted loss per share | $ (0.12) | $ (0.15) | $ (0.12) | $ (0.10) | |||||
For the six-month period ended December 31, 2012 | |||||||||
2nd Quarter | 1st Quarter | ||||||||
Total revenue | $ - | $ - | |||||||
Net loss | $ (9,572) | $ (5,858) | |||||||
Basic and diluted loss per share | $ (0.22) | $ (0.13) | |||||||
For the fiscal year ended June 30, 2012 | |||||||||
4th Quarter | 3rd Quarter | 2nd Quarter | 1st Quarter | ||||||
Total revenue | $ - | $ - | $ - | $ - | |||||
Net loss | $ (8,616) | $ (5,317) | $ (10,127) | $ (10,934) | |||||
Basic and diluted loss per share | $ (0.19) | $ (0.12) | $ (0.23) | $ (0.25) | |||||
3_SUMMARY_OF_SIGNIFICANT_ACCOU3
3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) (USD $) | 6 Months Ended | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2012 | Dec. 31, 2014 | Dec. 31, 2013 | Jun. 30, 2012 |
Asset Retirement Obligation [Abstract] | ||||
Balance, beginning of period | $435 | $415 | $389 | $101 |
Additions | 116 | 19 | 54 | |
Releases | -178 | -66 | -30 | |
Revisions to cost estimates | 16 | -2 | 2 | 334 |
Balance, end of period | $389 | $366 | $415 | $435 |
3_SUMMARY_OF_SIGNIFICANT_ACCOU4
3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 1) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Jun. 30, 2012 | Dec. 31, 2011 | Jun. 30, 2011 |
In Thousands, unless otherwise specified | ||||||
Assets | ||||||
Cash and cash equivalents | $10,139 | $23,902 | $24,985 | $37,030 | $59,477 | $72,312 |
Short-term investments | 0 | 0 | ||||
Marketable securities | 0 | 0 | ||||
Total financial assets | 10,139 | 23,902 | ||||
Liabilities | ||||||
Accounts payable and other accrued liabilities | 1,098 | 1,425 | ||||
Asset retirement obligation | 366 | 415 | 389 | 435 | 101 | |
Derivative liabilities | 0 | 103 | ||||
Total financial assets and liabilities | 11,603 | 25,845 | ||||
Level 1 | ||||||
Assets | ||||||
Cash and cash equivalents | 10,139 | 23,902 | ||||
Short-term investments | 0 | 0 | ||||
Marketable securities | 0 | 0 | ||||
Total financial assets | 10,139 | 23,902 | ||||
Liabilities | ||||||
Accounts payable and other accrued liabilities | 1,098 | 1,425 | ||||
Asset retirement obligation | 0 | 0 | ||||
Derivative liabilities | 0 | 0 | ||||
Total financial assets and liabilities | 11,237 | 25,327 | ||||
Level 2 | ||||||
Assets | ||||||
Cash and cash equivalents | 0 | 0 | ||||
Short-term investments | 0 | 0 | ||||
Marketable securities | 0 | 0 | ||||
Total financial assets | 0 | 0 | ||||
Liabilities | ||||||
Accounts payable and other accrued liabilities | 0 | 0 | ||||
Asset retirement obligation | 366 | 415 | ||||
Derivative liabilities | 0 | 103 | ||||
Total financial assets and liabilities | $366 | $518 |
3_SUMMARY_OF_SIGNIFICANT_ACCOU5
3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) (USD $) | 6 Months Ended | 12 Months Ended | ||||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2012 | Dec. 31, 2014 | Dec. 31, 2013 | Jun. 30, 2012 | Dec. 31, 2011 | Jun. 30, 2011 |
Accounting Policies [Abstract] | ||||||
Cash and cash equivalents | $24,985 | $10,139 | $23,902 | $37,030 | $59,477 | $72,312 |
Potentially dilutive securities | 4,331,000 | 5,818,057 | 6,173,057 | 4,542,002 |
5_EQUIPMENT_AND_LAND_Details
5. EQUIPMENT AND LAND (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Total Equipment | $344 | $521 |
Cost | ||
Computer equipment | 189 | 169 |
Furniture | 111 | 111 |
Geological equipment | 488 | 488 |
Vehicles | 221 | 208 |
Total Equipment | 1,009 | 976 |
Accumulated depreciation | ||
Computer equipment | 168 | 118 |
Furniture | 64 | 48 |
Geological equipment | 319 | 217 |
Vehicles | 114 | 72 |
Total Equipment | 665 | 455 |
Net book value | ||
Computer equipment | 21 | 51 |
Furniture | 47 | 63 |
Geological equipment | 169 | 271 |
Vehicles | 107 | 136 |
Total Equipment | $344 | $521 |
5_EQUIPMENT_AND_LAND_Details_N
5. EQUIPMENT AND LAND (Details Narrative) (USD $) | 6 Months Ended | 12 Months Ended | ||||
In Thousands, unless otherwise specified | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Jun. 30, 2012 |
Property, Plant and Equipment [Abstract] | ||||||
Depreciation expense | $90 | $42 | $210 | $197 | $171 | $123 |
6_ADDITIONAL_PAIDIN_CAPITAL_De
6. ADDITIONAL PAID-IN CAPITAL (Details) | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2012 | Dec. 31, 2014 | Dec. 31, 2013 | Jun. 30, 2012 | |
Directors, Officers or Employees | ||||
Risk free interest rate, minimum | 0.35% | 0.93% | 0.59% | 0.12% |
Risk free interest rate, maximum | 0.39% | 0.99% | 0.75% | 0.36% |
Expected volatiility, minimum | 80.00% | 74.00% | 80.00% | 80.00% |
Expected volatiility, maximum | 79.00% | 84.00% | ||
Expected dividend yield | 0.00% | 0.00% | 0.00% | 0.00% |
Expected term in years, minimum | 3 years | 3 years 3 months 18 days | 3 years | 3 years |
Expected term in years, maximum | 5 years | |||
Estimated forfeiture rate, minimum | 0.00% | 3.70% | 0.00% | 0.00% |
Estimated forfeiture rate, maximum | 3.90% | 0.00% | ||
Consultants | ||||
Risk free interest rate, minimum | 0.35% | 0.99% | 0.36% | 0.19% |
Risk free interest rate, maximum | 0.39% | 0.52% | 0.71% | |
Expected volatiility, minimum | 80.00% | 74.00% | 80.00% | 80.00% |
Expected volatiility, maximum | 109.00% | 79.00% | 84.00% | 113.00% |
Expected dividend yield | 0.00% | 0.00% | 0.00% | 0.00% |
Expected term in years, minimum | 3 years | 3 years 3 months 18 days | 3 years | 3 years |
Expected term in years, maximum | 5 years | 5 years | 5 years | |
Estimated forfeiture rate, minimum | 0.00% | 3.70% | 0.00% | 0.00% |
Estimated forfeiture rate, maximum | 3.90% | 0.00% |
6_ADDITIONAL_PAIDIN_CAPITAL_De1
6. ADDITIONAL PAID-IN CAPITAL (Details 1) (USD $) | 12 Months Ended | ||||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Jun. 30, 2012 | Jun. 30, 2011 | |
Outstanding Stock Options | |||||
Number of Options Outstanding, Ending | 4,345,500 | 4,700,500 | 4,331,000 | 4,331,000 | 3,136,500 |
Weighted-Average Remaining Contractual Life (in years) | 2 years 18 days | ||||
Weighted Average Exercise Price Outstanding, Ending | $5.16 | $5.51 | $6.42 | $5.84 | $6.16 |
Exercisable Stock Options | |||||
Number of Options Exercisable | 3,950,500 | 3,951,000 | 3,146,200 | 3,101,000 | |
Weighted-Average Remaining Contractual Life (in years) | 1 year 10 months 2 days | ||||
Weighted Average Exercise Price Exercisable | $5.54 | $6.15 | $7.01 | $5.51 | |
$1.23 - $3.00 | |||||
Outstanding Stock Options | |||||
Number of Options Outstanding, Ending | 1,456,500 | ||||
Weighted-Average Remaining Contractual Life (in years) | 2 years 7 months 2 days | ||||
Weighted Average Exercise Price Outstanding, Ending | $1.88 | ||||
Exercisable Stock Options | |||||
Number of Options Exercisable | 1,061,500 | ||||
Weighted-Average Remaining Contractual Life (in years) | 2 years | ||||
Weighted Average Exercise Price Exercisable | $2.07 | ||||
$3.01 - $6.00 | |||||
Outstanding Stock Options | |||||
Number of Options Outstanding, Ending | 1,533,000 | ||||
Weighted-Average Remaining Contractual Life (in years) | 2 years 3 months 7 days | ||||
Weighted Average Exercise Price Outstanding, Ending | $4.54 | ||||
Exercisable Stock Options | |||||
Number of Options Exercisable | 1,533,000 | ||||
Weighted-Average Remaining Contractual Life (in years) | 2 years 3 months 7 days | ||||
Weighted Average Exercise Price Exercisable | $4.54 | ||||
$6.01 - $9.00 | |||||
Outstanding Stock Options | |||||
Number of Options Outstanding, Ending | 210,000 | ||||
Weighted-Average Remaining Contractual Life (in years) | 1 year 6 months 15 days | ||||
Weighted Average Exercise Price Outstanding, Ending | $8.08 | ||||
Exercisable Stock Options | |||||
Number of Options Exercisable | 210,000 | ||||
Weighted-Average Remaining Contractual Life (in years) | 1 year 6 months 15 days | ||||
Weighted Average Exercise Price Exercisable | $8.08 | ||||
$9.01 - $12.00 | |||||
Outstanding Stock Options | |||||
Number of Options Outstanding, Ending | 975,000 | ||||
Weighted-Average Remaining Contractual Life (in years) | 1 year 2 months 16 days | ||||
Weighted Average Exercise Price Outstanding, Ending | $9.04 | ||||
Exercisable Stock Options | |||||
Number of Options Exercisable | 975,000 | ||||
Weighted-Average Remaining Contractual Life (in years) | 1 year 2 months 16 days | ||||
Weighted Average Exercise Price Exercisable | $9.04 | ||||
$12.01 + | |||||
Outstanding Stock Options | |||||
Number of Options Outstanding, Ending | 171,000 | ||||
Weighted-Average Remaining Contractual Life (in years) | 1 year 11 days | ||||
Weighted Average Exercise Price Outstanding, Ending | $13.05 | ||||
Exercisable Stock Options | |||||
Number of Options Exercisable | 171,000 | ||||
Weighted-Average Remaining Contractual Life (in years) | 1 year 11 days | ||||
Weighted Average Exercise Price Exercisable | $13.05 |
6_ADDITIONAL_PAIDIN_CAPITAL_De2
6. ADDITIONAL PAID-IN CAPITAL (Details 2) (USD $) | 12 Months Ended |
Dec. 31, 2014 | |
Number Outstanding | |
Non-vested at December 31, 2013 | 749,500 |
Granted | 275,000 |
Vested | -629,500 |
Forfeited | 0 |
Non-vested at December 31, 2014 | 395,000 |
Weighted Average Grant Date Fair Value | |
Non-vested at December 31, 2013 | $1.11 |
Granted | $0.65 |
Vested | $1.16 |
Forfeited | $0 |
Non-vested at December 31, 2014 | $0.71 |
6_ADDITIONAL_PAIDIN_CAPITAL_De3
6. ADDITIONAL PAID-IN CAPITAL (Details 3) (USD $) | 6 Months Ended | 12 Months Ended | ||
Dec. 31, 2012 | Dec. 31, 2014 | Dec. 31, 2013 | Jun. 30, 2012 | |
Number of Options | ||||
Number of Options Outstanding, Beginning | 4,331,000 | 4,700,500 | 4,331,000 | 3,136,500 |
Number of Options Granted | 610,000 | 275,000 | 622,500 | 1,616,000 |
Number of Options Exercised | -610,000 | -150,000 | 0 | -179,000 |
Number of Options Cancelled/Forfeited/Expired | 0 | -480,000 | -253,000 | -242,500 |
Number of Options Outstanding, Ending | 4,331,000 | 4,345,500 | 4,700,500 | 4,331,000 |
Number of Options Exercisable | 3,146,200 | 3,950,500 | 3,951,000 | 3,101,000 |
Weighted Average Exercise Price | ||||
Weighted Average Exercise Price Outstanding, Beginning | $5.84 | $5.51 | $6.42 | $6.16 |
Weighted Average Exercise Price Granted | $3.97 | $1.28 | $1.59 | $6.05 |
Weighted Average Exercise Price Exercised | $0.77 | $0.50 | $1.47 | |
Weighted Average Exercise Price Cancelled/Forfeited/Expired | $4.52 | $6.56 | $14.57 | |
Weighted Average Exercise Price Outstanding, Ending | $6.42 | $5.16 | $5.51 | $5.84 |
Weighted Average Exercise Price Exercisable | $7.01 | $5.54 | $6.15 | $5.51 |
Weighted-average fair value per share of options granted during the period | $2.04 | $0.65 | $0.84 | $3.83 |
Agents options and warrants (CDN$) | ||||
Number of Options | ||||
Number of Options Outstanding, Beginning | 211,002 | 1,472,557 | 0 | 211,002 |
Number of Options Granted | 0 | 0 | 1,472,557 | 0 |
Number of Options Exercised | 0 | 0 | 0 | 0 |
Number of Options Cancelled/Forfeited/Expired | -211,002 | 0 | 0 | 0 |
Number of Options Outstanding, Ending | 0 | 1,472,557 | 1,472,557 | 211,002 |
Weighted Average Exercise Price | ||||
Weighted Average Exercise Price Outstanding, Beginning | $9 | $4.15 | $0 | $9 |
Weighted Average Exercise Price Granted | $0 | $0 | $4.15 | $0 |
Weighted Average Exercise Price Exercised | $0 | $0 | $0 | $0 |
Weighted Average Exercise Price Cancelled/Forfeited/Expired | $9 | $0 | $0 | $0 |
Weighted Average Exercise Price Outstanding, Ending | $0 | $4.15 | $4.15 | $9 |
6_ADDITIONAL_PAID_IN_CAPITAL_D
6. ADDITIONAL PAID IN CAPITAL (Details Narrative) (USD $) | 6 Months Ended | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2012 | Dec. 31, 2014 | Jun. 30, 2013 | Jun. 30, 2012 |
Additional Paid in Capital [Abstract] | ||||
Unrecognized compensation cost | $85 | |||
Period for recognition of compensation cost | 6 months 18 days | |||
Total intrinsic value of options exercised | $1,938 | $167 | $0 | $679 |
8_INCOME_TAX_Details
8. INCOME TAX (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Deferred tax assets: | ||
Accrued vacation | $39,000 | $34,000 |
Reclamation provision | 57,000 | 70,000 |
Derivative transactions | 0 | 35,000 |
Total Deferred tax assets current | 96,000 | 139,000 |
Deferred tax assets Non-Current: | ||
Net operating loss carryforwards, US | 30,977,000 | 26,624,000 |
Mineral properties | 14,244,000 | 13,421,000 |
Share issue costs | 0 | 0 |
Reclamation provision | 69,000 | 72,000 |
Equipment | 115,000 | 74,000 |
Share based compensation | 4,020,000 | 4,047,000 |
Research and development | 1,882,000 | 1,186,000 |
Other | 0 | 0 |
Total Deferred tax assets non-current | 33,936,000 | 29,241,000 |
Deferred tax assets | 34,032,000 | 29,380,000 |
Valuation allowance | -34,032,000 | -29,380,000 |
Net | 0 | 0 |
Deferred tax liabilities Non-Current: | ||
Other | 0 | 0 |
Deferred tax liabilities | 0 | 0 |
Net deferred tax asset/(liability) | 0 | 0 |
Canada | ||
Deferred tax assets Non-Current: | ||
Noncapital loss carryforwards, Canada | 2,546,000 | 2,316,000 |
Capital loss, carryforwards, Canada | 7,000 | 3,000 |
Net operating loss carryforwards, US | $11,053,000 | $8,122,000 |
8_INCOME_TAX_Details_1
8. INCOME TAX (Details 1) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Income Tax Disclosure [Abstract] | ||
Canada | $3,055 | $2,756 |
United States | 30,977 | 26,624 |
Total valuation allowance | $34,032 | $29,380 |
8_INCOME_TAX_Details_2
8. INCOME TAX (Details 2) (USD $) | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||||||||||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2011 | Sep. 30, 2011 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Jun. 30, 2012 |
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Extraordinary Items, Noncontrolling Interest [Abstract] | ||||||||||||||||||||
Canada | $457 | ($623) | ($1,038) | ($15,572) | ||||||||||||||||
United States | -15,887 | -13,406 | -21,208 | -19,422 | ||||||||||||||||
Net loss | ($2,937) | ($3,601) | ($3,060) | ($4,431) | ($5,739) | ($6,855) | ($5,257) | ($4,395) | ($9,572) | ($5,858) | ($8,616) | ($5,317) | ($10,127) | ($10,934) | ($15,430) | ($21,061) | ($14,029) | ($22,246) | ($29,362) | ($34,994) |
8_INCOME_TAX_Details_3
8. INCOME TAX (Details 3) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Current | ||
Canada | $0 | $0 |
United States | 0 | 0 |
Deferred | ||
Canada | 0 | 0 |
United States | 0 | 0 |
Income tax expense (recovery) | $0 | $0 |
8_INCOME_TAX_Details_4
8. INCOME TAX (Details 4) (USD $) | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||||||||||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2011 | Sep. 30, 2011 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Jun. 30, 2012 |
Income Tax Disclosure [Abstract] | ||||||||||||||||||||
Net loss | ($2,937) | ($3,601) | ($3,060) | ($4,431) | ($5,739) | ($6,855) | ($5,257) | ($4,395) | ($9,572) | ($5,858) | ($8,616) | ($5,317) | ($10,127) | ($10,934) | ($15,430) | ($21,061) | ($14,029) | ($22,246) | ($29,362) | ($34,994) |
Statutory tax rate | 25.00% | 26.00% | 25.75% | 25.00% | ||||||||||||||||
Tax expense (recovery) at statutoy rate | -3,648 | -5,728 | -3,857 | -8,749 | -3,857 | -3,648 | -5,728 | -3,857 | -8,749 | |||||||||||
Foreign tax rates | -928 | -1,372 | -1,695 | -2,911 | -1,695 | -928 | -1,372 | -1,695 | -2,911 | |||||||||||
Change in tax rates | 27 | 162 | -1,067 | -9 | -1,067 | 27 | 162 | -1,067 | -9 | |||||||||||
Share issuance costs amortization | -220 | -243 | -91 | 300 | -91 | -220 | -243 | -91 | 300 | |||||||||||
Stock based compensation | 155 | 391 | -2,617 | 2,689 | -2,617 | 155 | 391 | -2,617 | 2,689 | |||||||||||
Nondeductible expenses | 5 | 8 | 10 | 669 | 10 | 5 | 8 | 10 | 669 | |||||||||||
Prior year true-up for loss carryovers | 20 | 851 | -231 | -353 | -231 | 20 | 851 | -231 | -353 | |||||||||||
Prior year true-up for property basis adjustments | -63 | -521 | 246 | -2,876 | 246 | -63 | -521 | 246 | -2,876 | |||||||||||
Unrecognized benefit of non capital losses | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||
Other | 0 | 0 | 1 | 4 | 1 | 0 | 0 | 1 | 4 | |||||||||||
Change in valuation allowance | 4,652 | 6,452 | 9,301 | 11,236 | 9,301 | 4,652 | 6,452 | 9,301 | 11,236 | |||||||||||
Income tax expense (recovery) | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
8_INCOME_TAX_Details_Narrative
8. INCOME TAX (Details Narrative) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | |
USD ($) | USD ($) | Canadian Dollars | |
CAD | |||
Increase in valuation allowance | $4,652,000 | $6,452,000 | |
Net operating loss carryforwards | 34,486,000 | 9,792,000 | |
Capital carryforward | 59,000 | ||
Tax deductions in excess of previous tax benefits | 538,000 | ||
Tax benefit related to net operating loss carryforward | $140,000 |
10_SUPPLEMENTAL_DISCLOSURE_WIT2
10. SUPPLEMENTAL DISCLOSURE WITH RESPECT TO CASH FLOWS (Details) (USD $) | 6 Months Ended | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2012 | Dec. 31, 2014 | Dec. 31, 2013 | Jun. 30, 2012 |
Other information | ||||
Interest received | $178 | $77 | $531 | $494 |
11_RETIREMENT_PLAN_Details_Nar
11. RETIREMENT PLAN (Details Narrative) (USD $) | 6 Months Ended | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2012 | Dec. 31, 2014 | Dec. 31, 2013 | Jun. 30, 2012 |
Defined Contribution Pension and Other Postretirement Plans Disclosure [Abstract] | ||||
Employee contribution match | $45 | $86 | $95 | $28 |
13_QUARTERLY_FINANCIAL_INFORMA2
13. QUARTERLY FINANCIAL INFORMATION (Details) (USD $) | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||||||||||||||||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2011 | Sep. 30, 2011 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Jun. 30, 2012 |
Quarterly Financial Information Disclosure [Abstract] | ||||||||||||||||||||
Total revenue | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | ||||||
Net loss | ($2,937) | ($3,601) | ($3,060) | ($4,431) | ($5,739) | ($6,855) | ($5,257) | ($4,395) | ($9,572) | ($5,858) | ($8,616) | ($5,317) | ($10,127) | ($10,934) | ($15,430) | ($21,061) | ($14,029) | ($22,246) | ($29,362) | ($34,994) |
Basic and diluted loss per share | ($0.06) | ($0.08) | ($0.06) | ($0.09) | ($0.12) | ($0.15) | ($0.12) | ($0.10) | ($0.22) | ($0.13) | ($0.19) | ($0.12) | ($0.23) | ($0.25) | ($0.35) | ($0.48) | ($0.29) | ($0.48) | ($0.66) | ($0.79) |