Document And Entity Information
Document And Entity Information | 12 Months Ended |
Nov. 30, 2015shares | |
Document and Entity Information [Abstract] | |
Entity Registrant Name | Intellipharmaceutics International Inc. |
Trading Symbol | ipci |
Document Type | 20-F |
Current Fiscal Year End Date | --11-30 |
Entity Common Stock, Shares Outstanding | 24,244,050 |
Amendment Flag | false |
Entity Central Index Key | 1,474,835 |
Entity Current Reporting Status | Yes |
Entity Voluntary Filers | No |
Entity Filer Category | Non-accelerated Filer |
Entity Well-known Seasoned Issuer | No |
Document Period End Date | Nov. 30, 2015 |
Document Fiscal Year Focus | 2,015 |
Document Fiscal Period Focus | FY |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Nov. 30, 2015 | Nov. 30, 2014 |
Current | ||
Cash | $ 1,755,196 | $ 4,233,975 |
Accounts receivable, net (Note 4) | 478,674 | 1,011,133 |
Investment tax credits | 458,021 | 324,986 |
Prepaid expenses, sundry and other assets | 229,225 | 414,663 |
2,921,116 | 5,984,757 | |
Deferred offering costs (Note 10) | 543,745 | 271,381 |
Property and equipment, net (Note 5) | 1,759,438 | 1,618,897 |
5,224,299 | 7,875,035 | |
Current | ||
Accounts payable | 3,027,974 | 668,069 |
Accrued liabilities (Note 6) | 454,290 | 675,487 |
Employee costs payable (Note 8) | 175,172 | 181,204 |
Current portion of capital lease obligations (Note 9) | 20,460 | 21,449 |
Convertible debenture (Note 7) | 1,518,429 | 1,377,302 |
5,196,325 | 2,923,511 | |
Capital lease obligations (Note 9) | 15,660 | 42,160 |
Deferred revenue (Note 3) | 150,000 | |
5,361,985 | 2,965,671 | |
Issued and outstanding | ||
24,244,050 common shares (2014 - 23,456,611) | 21,481,242 | 18,941,067 |
Additional paid-in capital | 30,969,093 | 31,119,930 |
Accumulated other comprehensive income | 284,421 | 284,421 |
Accumulated deficit | (52,872,442) | (45,436,054) |
$ (137,686) | $ 4,909,364 | |
Contingencies (Note 16) | ||
$ 5,224,299 | $ 7,875,035 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parentheticals) - shares | Nov. 30, 2015 | Nov. 30, 2014 | Nov. 30, 2013 |
Common shares, Issued | 24,244,050 | 23,456,611 | 21,430,611 |
Common shares, Outstanding | 24,244,050 | 23,456,611 | 21,430,611 |
Consolidated Statements of Oper
Consolidated Statements of Operations and Comprehensive Loss - USD ($) | 12 Months Ended | ||
Nov. 30, 2015 | Nov. 30, 2014 | Nov. 30, 2013 | |
Revenues | |||
Licensing (Note 3) | $ 4,093,781 | $ 8,415,540 | $ 1,481,719 |
Milestone (Note 3) | 354,153 | 43,209 | |
Other incidental services | 2,546 | ||
4,093,781 | 8,769,693 | 1,527,474 | |
Expenses | |||
Research and development | 7,247,473 | 8,020,201 | 5,076,236 |
Selling, general and administrative | 3,581,913 | 3,900,803 | 2,873,091 |
Depreciation (Note 5) | 377,849 | 381,385 | 396,814 |
11,207,235 | 12,302,389 | 8,346,141 | |
Loss from operations | (7,113,454) | (3,532,696) | (6,818,667) |
Fair value adjustment of derivative liabilities | (3,889,683) | ||
Financing expense (Note 10) | (115,056) | ||
Net foreign exchange gain (loss) | 46,211 | 10,896 | (359,554) |
Interest income | 1,507 | 4,898 | 2,839 |
Interest expense | (256,629) | (339,451) | (314,896) |
Extinguishment loss (Note 7) | (114,023) | ||
Net loss | (7,436,388) | (3,856,353) | (11,495,017) |
Other comprehensive income (loss) | |||
Foreign exchange translation adjustment | 524,431 | ||
Comprehensive loss | $ (7,436,388) | $ (3,856,353) | $ (10,970,586) |
Loss per common share, basic and diluted (in Dollars per share) | $ (0.31) | $ (0.17) | $ (0.58) |
Weighted average number of common shares outstanding, basic and diluted (in Shares) | 23,767,677 | 23,050,618 | 19,671,093 |
Consolidated Statements of Shar
Consolidated Statements of Shareholders' Equity (Deficiency) - USD ($) | Reclass of Conversion Option [Member]Additional Paid-in Capital [Member] | Reclass of Conversion Option [Member] | Reclass of Warrant Liabilities [Member]Additional Paid-in Capital [Member] | Reclass of Warrant Liabilities [Member] | Special Voting Shares [Member] | Additional Paid-in Capital [Member] | AOCI Attributable to Parent [Member] | Retained Earnings [Member] | Total |
Balance at Nov. 30, 2012 | $ 6,128,697 | $ 22,428,120 | $ (240,010) | $ (30,084,684) | $ (1,767,877) | ||||
Balance (in Shares) at Nov. 30, 2012 | 17,906,937 | ||||||||
Issuance of common shares (Note 10) (in Shares) | 3,315,000 | ||||||||
Issuance of common shares (Note 10) | $ 5,460,892 | 5,460,892 | |||||||
Share issuance cost and cost adjustments | (857,278) | (857,278) | |||||||
Stock options to employees | 1,017,908 | 1,017,908 | |||||||
Stock options to non-management board members (Note 11) | 135,974 | 135,974 | |||||||
DSU's to non-management board members | 39,547 | 39,547 | |||||||
Shares issued for options exercised | $ 8,459 | (2,494) | $ 5,965 | ||||||
Shares issued for options exercised, shares (in Shares) | 3,500 | 3,500 | |||||||
Issuance of shares on exercise of warrants | $ 980,382 | $ 980,382 | |||||||
Issuance of shares on exercise of warrants, shares (in Shares) | 205,175 | ||||||||
Other comprehensive gain (net of tax - $Nil) | 524,431 | 524,431 | |||||||
Net loss | (11,495,017) | (11,495,017) | |||||||
Cancellation on shares exchanged (in Shares) | (1) | ||||||||
Net Period Change in Consolidated statements of operations and comprehensive loss | $ 5,592,455 | 1,190,935 | 524,431 | (11,495,017) | (4,187,196) | ||||
Net Period Change in Consolidated statements of operations and comprehensive loss, shares (in Shares) | 3,523,674 | ||||||||
Balance at Nov. 30, 2013 | $ 11,721,152 | 23,619,055 | 284,421 | (41,579,701) | (5,955,073) | ||||
Balance (in Shares) at Nov. 30, 2013 | 21,430,611 | ||||||||
Share issuance cost and cost adjustments | $ (811,887) | (811,887) | |||||||
Stock options to employees | 1,748,607 | 1,748,607 | |||||||
Reclass | $ 728,950 | $ 728,950 | $ 5,438,022 | $ 5,438,022 | 510,216 | ||||
DSU's to non-management board members | 20,807 | 20,807 | |||||||
Shares issued for options exercised | $ 168,693 | (51,709) | $ 116,984 | ||||||
Shares issued for options exercised, shares (in Shares) | 48,000 | 48,000 | |||||||
Proceeds from at-the-market financing (Note 10) | $ 6,571,673 | $ 6,571,673 | |||||||
Proceeds from at-the-market financing (Note 10) (in Shares) | 1,689,500 | ||||||||
Issuance of shares on exercise of warrants | $ 1,291,436 | (510,216) | 781,220 | ||||||
Issuance of shares on exercise of warrants, shares (in Shares) | 288,500 | ||||||||
Adjustment of conversion option in convertible debenture (Note 7) | 126,414 | 126,414 | |||||||
Net loss | (3,856,353) | (3,856,353) | |||||||
Net Period Change in Consolidated statements of operations and comprehensive loss | $ 7,219,915 | 7,500,875 | (3,856,353) | 10,864,437 | |||||
Net Period Change in Consolidated statements of operations and comprehensive loss, shares (in Shares) | 2,026,000 | ||||||||
Balance at Nov. 30, 2014 | $ 18,941,067 | 31,119,930 | 284,421 | (45,436,054) | 4,909,364 | ||||
Balance (in Shares) at Nov. 30, 2014 | 23,456,611 | ||||||||
Share issuance cost and cost adjustments | $ (78,166) | (78,166) | |||||||
Stock options to employees | 417,818 | 417,818 | |||||||
Reclass | 464,804 | ||||||||
DSU's to non-management board members | 29,056 | 29,056 | |||||||
Shares issued for options exercised | $ 300,869 | (132,907) | $ 167,962 | ||||||
Shares issued for options exercised, shares (in Shares) | 91,000 | 91,000 | |||||||
Proceeds from at-the-market financing (Note 10) | $ 1,290,168 | $ 1,290,168 | |||||||
Proceeds from at-the-market financing (Note 10) (in Shares) | 471,439 | ||||||||
Issuance of shares on exercise of warrants | $ 1,027,304 | (464,804) | 562,500 | ||||||
Issuance of shares on exercise of warrants, shares (in Shares) | 225,000 | ||||||||
Net loss | (7,436,388) | (7,436,388) | |||||||
Net Period Change in Consolidated statements of operations and comprehensive loss | $ 2,540,175 | (150,837) | (7,436,388) | (5,047,050) | |||||
Net Period Change in Consolidated statements of operations and comprehensive loss, shares (in Shares) | 787,439 | ||||||||
Balance at Nov. 30, 2015 | $ 21,481,242 | $ 30,969,093 | $ 284,421 | $ (52,872,442) | $ (137,686) | ||||
Balance (in Shares) at Nov. 30, 2015 | 24,244,050 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 12 Months Ended | ||
Nov. 30, 2015 | Nov. 30, 2014 | Nov. 30, 2013 | |
Net loss | $ (7,436,388) | $ (3,856,353) | $ (11,495,017) |
Items not affecting cash | |||
Depreciation (Note 5) | 377,849 | 381,385 | 396,814 |
Stock-based compensation (Note 11) | 417,818 | 1,748,607 | 1,153,882 |
Deferred share units (Note 12) | 29,056 | 20,807 | 39,547 |
Fair value adjustment of derivative liabilities | 3,889,683 | ||
Accreted interest (Note 7) | 27,103 | 127,261 | 96,556 |
Loss on extinguishment (Note 7) | 114,023 | ||
Unrealized foreign exchange loss (gain) | (81,063) | 3,057 | 306,625 |
Change in non-cash operating assets & liabilities | |||
Accounts receivable | 532,459 | 464,611 | (1,472,966) |
Investment tax credits | (133,035) | (145,436) | 106,744 |
Prepaid expenses, sundry and other assets | 185,438 | (102,130) | (181,402) |
Accounts payable and accrued liabilities | 2,034,576 | (356,722) | 232,738 |
Deferred revenue | 150,000 | ||
Cash flows used in operating activities | (3,782,164) | (1,714,913) | (6,926,796) |
Financing activities | |||
Repayment of related party loans (Note 7) | (739,208) | ||
Repayment of capital lease obligations | (27,489) | (53,557) | (49,989) |
Issuance of shares on exercise of stock options (Note 11) | 167,962 | 116,984 | 5,965 |
Issuance of common shares on at-the-market financing, gross (Note 10) | 1,290,168 | 6,571,673 | |
Proceeds from issuance of shares and warrants, gross (Note 10) | 6,196,800 | ||
Proceeds from issuance of shares on exercise of warrants (Note 14) | 562,500 | 781,220 | 511,743 |
Proceeds from convertible debenture (Note 7) | 1,500,000 | ||
Share issuance cost (Note 10) | (259,276) | (719,837) | (836,099) |
Cash flows provided from financing activities | 1,733,865 | 5,957,275 | 7,328,420 |
Investing activity | |||
Purchase of property and equipment | (430,480) | (768,973) | (122,017) |
Cash flows used in investing activities | (430,480) | (768,973) | (122,017) |
Effect of foreign exchange (gain) loss on cash held in foreign currency | (16,037) | ||
(Decrease) increase in cash and cash equivalents | (2,478,779) | 3,473,389 | 263,570 |
Cash and cash equivalents, beginning of year | 4,233,975 | 760,586 | 497,016 |
Cash and cash equivalents, end of year | 1,755,196 | 4,233,975 | 760,586 |
Supplemental cash flow information | |||
Interest paid | $ 179,878 | $ 213,637 | $ 176,311 |
Taxes paid |
Note 1 - Nature of Operations
Note 1 - Nature of Operations | 12 Months Ended |
Nov. 30, 2015 | |
Disclosure Text Block [Abstract] | |
Nature of Operations [Text Block] | 1. Nature of operations Intellipharmaceutics International Inc. (“IPC” or the “Company”) is a pharmaceutical company specializing in the research, development and manufacture of novel and generic controlled-release and targeted-release oral solid dosage drugs. On October 22, 2009, IntelliPharmaCeutics Ltd. (“IPC Ltd. “) and Vasogen Inc. (“Vasogen”) completed a court approved plan of arrangement and merger (the “IPC Arrangement Agreement”), resulting in the formation of the Company, which is incorporated under the laws of Canada. The Company’s common shares are traded on the Toronto Stock Exchange and NASDAQ. The Company earns revenues from development contracts which provide upfront fees, milestone payments, reimbursement of certain expenditures and licensing income upon commercialization of its products. In November 2013, the U.S. Food and Drug Administration (“FDA”) granted the Company final approval to market the Company’s first product, the 15 mg and 30 mg strengths of our generic Focalin XR® (dexmethylphenidate hydrochloride extended-release) capsules. Going concern The consolidated financial statements are prepared on a going concern basis, which assumes that the Company will be able to meet its obligations and continue its operations for the next twelve months. The Company has incurred losses from operations since inception and has reported losses of $7,436,388 for the year ended November 30, 2015 (2014 - $3,856,353; 2013 - $11,495,017), and has an accumulated deficit of $52,872,442 as at November 30, 2015 (November 30, 2014 - $45,436,054). The Company has funded its research and development (“R&D”) activities principally through the issuance of securities, loans from related parties, funds from the IPC Arrangement Agreement and funds received under development agreements. There is no certainty that such funding will be available going forward. In the event that the Company does not obtain sufficient additional capital, these conditions raise substantial doubt about its ability to continue as a going concern and realize its assets and pay its liabilities as they become due. In order for the Company to continue as a going concern and fund any significant expansion of its operation or R&D activities, the Company will likely require significant additional capital. Although there can be no assurances, such funding may come from revenues from the sales of our generic Focalin XR® (dexmethylphenidate hydrochloride extended-release) capsules, from proceeds of the Company’s at-the-market offering program and from potential partnering opportunities. Other potential sources of capital may include payments from licensing agreements, cost savings associated with managing operating expense levels, other equity and/or debt financings, and/or new strategic partnership agreements which fund some or all costs of product development, although there can be no assurance that the Company will be able to obtain any such capital on terms or in amounts sufficient to meet its needs or at all. The Company’s ultimate success will depend on whether its product candidates receive the approval of the FDA or Health Canada and it is able to successfully market approved products. The Company cannot be certain that it will be able to receive FDA or Health Canada approval for any of its current or future product candidates, or that it will reach the level of sales and revenues necessary to achieve and sustain profitability. The availability of equity or debt financing will be affected by, among other things, the results of the Company’s research and development, its ability to obtain regulatory approvals, the market acceptance of its products, the state of the capital markets generally, strategic alliance agreements, and other relevant commercial considerations. In addition, if the Company raises additional funds by issuing equity securities, its then existing security holders will likely experience dilution, and the incurring of indebtedness would result in increased debt service obligations and could require the Company to agree to operating and financial covenants that would restrict its operations. Any failure on its part to raise additional funds on terms favorable to the Company or at all, may require the Company to significantly change or curtail its current or planned operations in order to conserve cash until such time, if ever, that sufficient proceeds from operations are generated, and could result in the Company not taking advantage of business opportunities, in the termination or delay of clinical trials or the Company not taking any necessary actions required by the FDA or Health Canada for one or more of the Company’s product candidates, in curtailment of the Company’s product development programs designed to identify new product candidates, in the sale or assignment of rights to its technologies, products or product candidates, and/or its inability to file Abbreviated New Drug Applications (“ANDAs”), Abbreviated New Drug Submissions (“ANDSs”) or New Drug Applications (“NDAs”) at all or in time to competitively market its products or product candidates. The consolidated financial statements do not include any adjustments that might result from the outcome of uncertainties described above. If the going concern assumption no longer becomes appropriate for these financial statements, then adjustments would be necessary to the carrying values of assets and liabilities, the reported expenses and the balance sheet classifications used. Such adjustments could be material. |
Note 2 - Basis of Presentation
Note 2 - Basis of Presentation | 12 Months Ended |
Nov. 30, 2015 | |
Disclosure Text Block [Abstract] | |
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block] | 2. Basis of presentation (a) Basis of consolidation These consolidated financial statements include the accounts of the Company and its wholly owned operating subsidiaries, IPC Ltd., Intellipharmaceutics Corp. (“IPC Corp”), and Vasogen Corp. All inter-company accounts and transactions have been eliminated on consolidation. (b) Use of estimates The preparation of the consolidated financial statements in conformity with accounting principles generally accepted in the United States of America (“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 revenue and expenses during the year. Actual results could differ from those estimates. Areas where significant judgment is involved in making estimates are: the determination of the functional currency; the fair values of financial assets and liabilities; the determination of units of accounting for revenue recognition; the accrual of licensing and milestone revenue; and forecasting future cash flows for assessing the going concern assumption. |
Note 3 - Significant Accounting
Note 3 - Significant Accounting Policies | 12 Months Ended |
Nov. 30, 2015 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies [Text Block] | 3. Significant accounting policies (a) Cash and cash equivalents The Company considers all highly liquid securities with an original maturity of three months or less to be cash equivalents. Cash equivalent balances consist of bankers’ acceptances and bank accounts with variable, market rates of interest. The financial risks associated with these instruments are minimal and the Company has not experienced any losses from investments in these securities. The carrying amount of cash and cash equivalents approximates its fair value due to its short-term nature. (b) Accounts receivable The Company reviews its sales and accounts receivable aging and determines whether an allowance for doubtful accounts is required. (c) Financial instruments The Company evaluates all of its financial instruments to determine if such instruments are derivatives or contain features that qualify as embedded derivatives. For derivative financial instruments that are classified as liabilities, the derivative instrument is initially recorded at its fair value using the appropriate valuation methodology and is then re-valued at each reporting date, with changes in the fair value reported in the consolidated statements of operations and comprehensive loss. (d) Investment tax credits The investment tax credits (“ITC") receivable are amounts considered recoverable from the Canadian federal and provincial governments under the Scientific Research & Experimental Development (“SR&ED”) incentive program. The amounts claimed under the program represent the amounts based on management estimates of eligible research and development costs incurred during the year. Realization is subject to government approval. Any adjustment to the amounts claimed will be recognized in the year in which the adjustment occurs. Refundable ITCs claimed relating to capital expenditures are credited to property and equipment. Refundable ITCs claimed relating to current expenditures are netted against research and development expenditures. (e) Property and equipment Property and equipment are recorded at cost. Equipment acquired under capital leases are recorded net of imputed interest, based upon the net present value of future payments. Assets under capital leases are pledged as collateral for the related lease obligation. Repairs and maintenance expenditures are charged to operations; major betterments and replacements are capitalized. Depreciation bases and rates are as follows: Assets Basis Rate Computer equipment Declining balance 30% Computer software Declining balance 50% Furniture and fixtures Declining balance 20% Laboratory equipment Declining balance 20% Leasehold improvements Straight line Over term of lease Leasehold improvements and assets acquired under capital leases are depreciated over the term of their useful lives or the lease period, whichever is shorter. The charge to operations resulting from depreciation of assets acquired under capital leases is included with depreciation expense. (f) Impairment of long-lived assets Long-lived assets are reviewed for impairment when events or circumstances indicate that the carrying value of an asset may not be recoverable. For assets that are to be held and used, impairment is recognized when the sum of estimated undiscounted cash flows associated with the asset or group of assets is less than its carrying value. If impairment exists, an adjustment is made to write the asset down to its fair value, and a loss is recorded as the difference between the carrying value and fair value. (g) Warrants The Company previously issued warrants as described in Notes 10 and 14. In fiscal 2013 the warrants were presented as a liability because they did not meet the criteria of Accounting Standard Codification (“ASC”) topic 480 Distinguishing Liabilities from Equity for equity classification. Subsequent changes in the fair value of the warrants were recorded in the consolidated statements of operations and comprehensive loss. As discussed in Note 3(m) the Company changed its functional currency effective December 1, 2013 such that these warrants met the criteria for prospective equity classification in ASC topic 480, and the U.S. dollar translated amount of the warrant liability at December 1, 2013 became the amount reclassified to equity. (h) Convertible debenture In fiscal 2013, the Company issued an unsecured convertible debenture in the principal amount of $1.5 million (the “Debenture”) as described in Note 7. At issuance the conversion option was bifurcated from its host contract and the fair value of the conversion option was characterized as an embedded derivative upon issuance as it met the criteria of ASC topic 815 Derivatives and Hedging. Subsequent changes in the fair value of the embedded derivative were recorded in the consolidated statements of operations and comprehensive loss. The proceeds received from the Debenture less the initial amount allocated to the embedded derivative were allocated to the liability and were accreted over the life of the Debenture using the imputed rate of interest. As discussed in Note 3(m) the Company changed its functional currency effective December 1, 2013 such that the conversion option no longer met the criteria for bifurcation and was prospectively reclassified to shareholders equity under ASC Topic 815 at the U.S. dollar translated amount at December 1, 2013. (i) Revenue recognition The Company accounts for revenue in accordance with the provision of ASC topic 605 Revenue Recognition. The Company earns revenue from non-refundable upfront fees, milestone payments upon achievement of specified research or development, exclusivity milestone payments and licensing payments on sales of resulting products and other incidental services. Revenue is realized or realizable and earned when persuasive evidence of an arrangement exists, delivery has occurred or services have been rendered, the price to the customer is fixed or determinable, and collectability is reasonably assured. From time to time, the Company enters into transactions that represent multiple-element arrangements. Management evaluates arrangements with multiple deliverables to determine whether the deliverables represent one or more units of accounting for the purpose of revenue recognition. A delivered item is considered a separate unit of accounting if the delivered item has stand-alone value to the customer, the fair value of any undelivered items can be reliably determined, and the delivery of undelivered items is probable and substantially in the Company's control. The relevant revenue recognition accounting policy is applied to each separate unit of accounting. Licensing The Company recognizes revenue from the licensing of the Company's drug delivery technologies, products and product candidates. Licensing revenue is recognized as earned in accordance with the contract terms when the amounts can be reasonably estimated and collectability is reasonably assured. The Company has a license and commercialization agreement with Par Pharmaceutical Inc. (“Par”). Under the exclusive territorial license rights granted to Par, the agreement requires that Par manufacture, promote, market, sell and distribute the product. Licensing revenue amounts receivable by the Company under this agreement are calculated and reported to the Company by Par, with such amounts generally based upon net product sales and net profit which include estimates for chargebacks, rebates, product returns, and other adjustments. Licensing revenue payments received by the Company from Par under this agreement are not subject to deductions for chargebacks, rebates, product returns, and other pricing adjustments. Based on this arrangement and the guidance per ASC topic 605, the Company records licensing revenue as earned in the consolidated statements of operations and comprehensive loss. Milestones The milestone method recognizes revenue on substantive milestone payments in the period the milestone is achieved. Milestones are considered substantive if all of the following conditions are met: (i) the milestone is commensurate with either the vendor’s performance to achieve the milestone or the enhancement of the value of the delivered item or items as a result of a specific outcome resulting from the vendor’s performance to achieve the milestone; (ii) the milestone relates solely to past performance; and (iii) the milestone is reasonable relative to all of the deliverables and payment terms within the arrangement. Non-substantive milestone payments that might be paid to the Company based on the passage of time or as a result of a partner’s performance are allocated to the units of accounting within the arrangement; they are recognized as revenue in a manner similar to those units of accounting. In connection with the license and commercialization agreement with Par, for each day up to a maximum of 180 days from the date of launch if the Company’s product is the only generic in the market or if there is only one generic competitor, a milestone payment is earned. The Company recognized milestone revenue of $Nil (2014 - $354,153; 2013 – $43,209) upon achievement of the milestone Research and development Under arrangements where the license fees and research and development activities can be accounted for as a separate unit of accounting, non-refundable upfront license fees are deferred and recognized as revenue on a straight-line basis over the expected term of the Company's continued involvement in the research and development process. Deferred revenue Deferred revenue represents the funds received from clients, for which the revenues have not yet been earned, as the milestones have not been achieved, or in the case of upfront fees for drug development, where the work remains to be completed. During the year ended November 30, 2015, the Company received an amount of $150,000 (2014 - $Nil), and recorded it as deferred revenue, as it did not meet the criteria for recognition. Other incidental services Incidental services which the Company may provide from time to time include, consulting advice provided to other organizations regarding FDA standards. Revenue is earned and realized when all of the following conditions are met: (i) there is persuasive evidence of an arrangement; (ii) service has been rendered; (iii) the sales price is fixed or determinable; and (iv) collectability is reasonably assured. (j) Research and development costs Research and development costs related to continued research and development programs are expensed as incurred in accordance with ASC topic 730. However, materials and equipment are capitalized and amortized over their useful lives if they have alternative future uses. (k) Income taxes The Company uses the liability method of accounting for income taxes. Under the 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 and for losses and tax credit carry forwards. Significant judgment is required in determining whether deferred tax assets will be realized in full or in part. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the year that includes the date of enactments. A valuation allowance is provided for the portion of deferred tax assets that is more likely than not to remain unrealized. The Company accounts in accordance with ASC topic 740-10. This ASC topic requires that uncertain tax positions are evaluated in a two-step process, whereby (i) the Company determines whether it is more likely than not that the tax positions will be sustained based on the technical merits of the position and (ii) those tax positions that meet the more likely than not recognition threshold, the Company would recognize the largest amount of tax benefit that is greater than 50% likely of being realized upon ultimate settlement with the related tax authority. Changes in recognition or measurement are reflected in the period in which the change in judgment occurs. The cumulative effects of the application of the provisions of ASC topic 740-10 are described in Note 15. The Company records any interest related to income taxes in interest expense and penalties in selling, general and administrative expense. (l) Share issue costs Share issue costs are recorded as a reduction of the proceeds from the issuance of capital stock. (m) Translation of foreign currencies Previously, operations of the Company were comprised of only research and development activities conducted in Canada. The Company generated no cash from operations, though funding for the operations (as in previous years) was primarily through U.S. dollar equity financings. The functional currency was assessed to be Canadian dollars. By obtaining the final approval of the Company’s generic Focalin XR® (dexmethylphenidate hydrochloride extended-release) capsules for the 15 and 30 mg strengths with Par in November 2013, the Company generated and collected U.S. dollar revenues in the year ended November 30, 2014 which represents a significant and material change in economic facts and circumstances. Management had assessed the functional currency for the fiscal year commencing December 1, 2013 and concluded that the Company and its wholly owned operating subsidiaries should be measured using the U.S. dollar as the functional currency. Effective December 1, 2013, the change in functional currency was applied on a prospective basis. The U.S. dollar translated amounts of nonmonetary assets and liabilities at December 1, 2013 became the historical accounting basis for those assets and liabilities at December 1, 2013. The impact of the change in functional currency on the measurement and reporting of warrants and the Debenture is discussed in Note 3(g) and 3(h) above. The change in functional currency resulted in no change in cumulative translation adjustment going forward as the Company and its wholly owned operating subsidiaries have U.S. dollar functional currencies. In respect of other transactions denominated in currencies other than the Company and its wholly owned operating subsidiaries’ functional currencies, the monetary assets and liabilities are translated at the period end rates. Revenue and expenses are translated at rates of exchange prevailing on the transaction dates. All of the exchange gains or losses resulting from these other transactions are recognized in the consolidated statements of operations and comprehensive loss. The Company’s reporting currency in the year ended November 30, 2015, 2014 and 2013 was the U.S. dollar. (n) Stock-based compensation The Company has a stock-based compensation plan which authorizes the granting of various equity-based incentives including stock options and restricted share units (“RSU”s). Stock-based compensation expense recognized during the period is based on the value of stock-based payment awards that are ultimately expected to vest. The Company estimates forfeitures at the time of grant and revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates. The stock-based compensation expense is recorded in the consolidated statements of operations and comprehensive loss under research and development expense and under selling, general and administration expense. Note 11 provides supplemental disclosure of the Company's stock options. (o) Deferred Share Units Deferred Share Units (“DSU”s) are valued based on the trading price of the Company’s common shares on the Toronto Stock Exchange. The Company records the value of the DSU’s owing to non-management board members in the consolidated statement of shareholders equity (deficiency). (p) Loss per share Basic loss per share (“EPS”) is computed by dividing the loss attributable to common shareholders by the weighted average number of common shares outstanding. Diluted EPS reflects the potential dilution that could occur from common shares issuable through the exercise or conversion of stock options, restricted stock awards, warrants and convertible securities. In certain circumstances, the conversion of options, warrants and convertible securities are excluded from diluted EPS if the effect of such inclusion would be anti-dilutive. The dilutive effect of stock options is determined using the treasury stock method. Stock options and warrants to purchase 7,128,082, 7,149,283 and 7,034,647 common shares of the Company during fiscal 2015, 2014, and 2013, respectively, were not included in the computation of diluted EPS because the Company has incurred a loss for the years ended November 30, 2015, 2014 and 2013 as the effect would be anti-dilutive. (q) Comprehensive loss The Company follows ASC topic 220. This statement establishes standards for reporting and display of comprehensive (loss) income and its components. Comprehensive loss is net loss plus certain items that are recorded directly to shareholders' equity. Other than foreign exchange gains and losses arising from cumulative translation adjustments, the Company has no other comprehensive loss items. (r) Fair value measurement Under ASC topic 820, fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (i.e., an exit price). ASC topic 820 establishes a hierarchy for inputs to valuation techniques used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs be used when available. Observable inputs are inputs that reflect assumptions market participants would use in pricing the asset or liability developed based on market data obtained from sources independent of the Company. Unobservable inputs are inputs that reflect the Company's own assumptions about the assumptions market participants would use in pricing the asset or liability developed based on the best information available in the circumstances. There are three levels to the hierarchy based on the reliability of inputs, as follows: ● Level 1 - Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets. ● Level 2 - Inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. Level 2 inputs include quoted prices for similar assets or liabilities in active markets, or quoted prices for identical or similar assets and liabilities in markets that are not active. ● Level 3 - Unobservable inputs for the asset or liability. The degree of judgment exercised by the Company in determining fair value is greatest for instruments categorized in Level 3. (s) Future Accounting pronouncements In May 2014, the FASB issued Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers, requiring an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. The updated standard will replace most existing revenue recognition guidance in U.S. GAAP when it becomes effective. In August 2015, the FASB issued ASU No.2015-14, which defers the effective date of the FASB’s revenue standard, ASU No. 2014-09, by one year for all entities and permits early adoption on a limited basis. The standard is effective for annual reporting periods (including interim reporting periods within those periods) beginning after December 15, 2017. Early adoption is permitted as of annual reporting periods beginning after December 15, 2016, including interim reporting periods within those annual periods. The Company is in the process of evaluating the impact of adoption on the Company’s financial position, results of operations or cash flow. In June 2014, the FASB issued ASU No. 2014-12 in response to the consensus of the Emerging Issues Task Force on EITF Issue 13-D.2 The ASU clarifies that entities should treat performance targets that can be met after the requisite service period of a share-based payment award as performance conditions that affect vesting. Therefore, an entity would not record compensation expense (measured as of the grant date without taking into account the effect of the performance target) related to an award for which transfer to the employee is contingent on the entity’s satisfaction of a performance target until it becomes probable that the performance target will be met. No new disclosures are required under the ASU. The ASU’s guidance is effective for all entities for reporting periods (including interim periods) beginning after December 15, 2015. Early adoption is permitted. The Company does not expect the adoption of the amendments to have a material impact on the Company’s financial position, results of operations or cash flow. In 2014, the FASB issued ASU No. 2014-15, which provides guidance on determining when and how to disclose going-concern uncertainties in the financial statements. The new standard requires management to perform interim and annual assessments of an entity’s ability to continue as a going concern within one year of the date the financial statements are issued. An entity must provide certain disclosures if “conditions or events raise substantial doubt about the entity’s ability to continue as a going concern.” The ASU applies to all entities and is effective for annual periods ending after December 15, 2016, and interim periods thereafter, with early adoption permitted.The Company is in the process of evaluating the amendments to determine if they have a material impact on the Company’s financial position, results of operations or cash flow. In November 2014, the FASB issued ASU No. 2014-16, Derivatives and Hedging (Topic 815): Determining Whether the Host Contract in a Hybrid Financial Instrument Issued in the Form of a Share is More Akin to Debt or to Equity, which applies to any entity that is an issuer of, or invests in, hybrid financial instruments that are issued in the form of a share. The amendments in ASU No. 2014-16 clarify that an entity must take into account all relevant terms and features when reviewing the nature of the host contract. Additionally, the amendments state that no one term or feature would define the host contract’s economic characteristics and risks. Instead, the economic characteristics and risks of the hybrid financial instrument as a whole would determine the nature of the host contract. ASU No. 2014-16’s amendments will be effective for public business entities for fiscal years, and interim periods within those fiscal years, starting after December 15, 2015, with early adoption permitted. The Company is in the process of evaluating the amendments to determine if they have a material impact on the Company’s financial position, results of operations or cash flow. In February, 2015, the FASB issued ASU No. 2015-02, Consolidation (Topic 810): Amendments to the Consolidation Analysis. ASU No. 2015-02 provides guidance on the consolidation evaluation for reporting organizations that are required to evaluate whether they should consolidate certain legal entities such as limited partnerships, limited liability corporations, and securitization structures (collateralized debt obligations, collateralized loan obligations, and mortgage-backed security transactions). ASU No. 2015-02 is effective for periods beginning after December 15, 2015, with early adoption permitted. The Company is in the process of evaluating the amendments to determine if they have a material impact on the Company’s financial position, results of operations or cash flow. In April 2015, the FASB issued ASU No. 2015-03, Interest—Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs. ASU No. 2015-03 is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015 with early adoption permitted. The Company is in the process of evaluating the amendments to determine if they have a material impact on the Company’s financial position, results of operations or cash flow. In November 2015 the FASB issued ASU No. 2015-17, “Balance Sheet Classification of Deferred Taxes,” as part of its simplification initiative. Under the ASU, organizations that present a classified balance sheet are required to classify all deferred taxes as noncurrent assets or noncurrent liabilities. ASU No. 2015-17 is effective for annual periods beginning after December 15, 2016, and interim periods within those annual periods. The Company is in the process of evaluating the amendments to determine if they have a material impact on the Company’s financial position, results of operations or cash flow. In January 2016, the FASB issued ASU 2016-01, which makes limited amendments to the guidance in U.S. GAAP on the classification and measurement of financial instruments. The new standard significantly revises an entity’s accounting related to (1) the classification and measurement of investments in equity securities and (2) the presentation of certain fair value changes for financial liabilities measured at fair value. It also amends certain disclosure requirements associated with the fair value of financial instruments. ASU No. 2016-01 is effective for fiscal years beginning after December 15, 2017, and interim periods within those annual periods. The Company is in the process of evaluating the amendments to determine if they have a material impact on the Company’s financial position, results of operations or cash flow. |
Note 4 - Accounts Receivable
Note 4 - Accounts Receivable | 12 Months Ended |
Nov. 30, 2015 | |
Receivables [Abstract] | |
Financing Receivables [Text Block] | 4. Accounts receivable The Company currently has no debt agreements in place whereby any amount of receivables serve as collateral. The Company has no off-balance-sheet credit exposures and has no foreclosed or repossessed assets. The Company has had no impaired loans related to receivables and has identified no loss contingencies related to the receivables at November 30, 2015 and November 30, 2014. Risks and uncertainties and credit quality information related to accounts receivable have been disclosed in Note 17. |
Note 5 - Property and Equipment
Note 5 - Property and Equipment | 12 Months Ended |
Nov. 30, 2015 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment Disclosure [Text Block] | 5. Property and equipment November 30, 2015 Cost Accumulated amortization Net book value $ $ $ Computer equipment 293,870 214,525 79,345 Computer software 124,151 110,860 13,291 Furniture and fixtures 129,860 104,089 25,771 Laboratory equipment 3,483,398 1,968,088 1,515,310 Leasehold improvements 1,142,122 1,142,122 - Laboratory equipment under capital lease 276,300 155,203 121,097 Computer equipment under capital lease 76,458 71,834 4,624 5,526,159 3,766,721 1,759,438 November 30, 2014 Cost Accumulated amortization Net book value $ $ $ Computer equipment 247,335 196,237 51,098 Computer software 119,151 99,027 20,124 Furniture and fixtures 126,690 98,406 28,284 Laboratory equipment 3,019,713 1,658,299 1,361,414 Leasehold improvements 1,142,122 1,142,122 - Laboratory equipment under capital lease 276,300 124,928 151,372 Computer equipment under capital lease 76,458 69,853 6,605 5,007,769 3,388,872 1,618,897 Depreciation for the year ended November 30, 2015 was $377,849 (2014 -$381,385; 2013 - $396,814). Property and equipment are reviewed for impairment whenever events or changes in circumstances indicate that the carrying value of an asset may not be recoverable. Impairment is assessed by comparing the carrying amount of an asset with the sum of the undiscounted cash flows expected from its use and disposal, and as such requires the Company to make significant estimates on expected revenues from the commercialization of its products and services and the related expenses. The Company records a write-down for long-lived assets which have been abandoned and do not have any residual value. For the year ended November 30, 2015, the Company recorded a $Nil write-down of long-lived assets (2014 - $Nil; 2013 – $Nil). |
Note 6 - Accrued Liabilities
Note 6 - Accrued Liabilities | 12 Months Ended |
Nov. 30, 2015 | |
Payables and Accruals [Abstract] | |
Accounts Payable and Accrued Liabilities Disclosure [Text Block] | 6. Accrued liabilities November 30, 2015 November 30, 2014 $ $ Professional fees 163,552 349,957 Other 290,738 325,530 454,290 675,487 |
Note 7 - Due to Related Parties
Note 7 - Due to Related Parties | 12 Months Ended |
Nov. 30, 2015 | |
Related Party Transactions [Abstract] | |
Related Party Transactions Disclosure [Text Block] | 7. Due to related parties Convertible debenture Amounts due to the related parties are payable to entities controlled by two shareholders who are also officers and directors of the Company. November 30, 2015 November 30, 2014 $ $ Convertible debenture payable to two directors and officers of the Company, unsecured, 12% annual interest rate, payable monthly 1,518,429 1,377,302 On January 10, 2013, the Company completed a private placement financing of the Debenture, which had an original maturity date of January 1, 2015. The Debenture bears interest at a rate of 12% per annum, payable monthly, is pre-payable at any time at the option of the Company, and is convertible at any time into 500,000 common shares at a conversion price of $3.00 per common share at the option of the holder. Dr. Isa Odidi and Dr. Amina Odidi, principal shareholders, directors and executive officers of the Company purchased the Debenture and provided the Company with the $1.5 million of the proceeds for the Debenture. The conversion price of the Debenture is in U.S. dollars and at issuance IPC’s functional currency at the time of issuance was Canadian dollars. Under U.S. GAAP where the conversion price of the Debenture is denominated in a currency other than an entity's functional currency, the conversion option meets the definition of an embedded derivative. The conversion option was bifurcated from its host contract and the fair value of the conversion option characterized as an embedded derivative upon issuance. The embedded derivative is presented together on a combined basis with the host contract. The derivative is re-measured at the end of every reporting period with the change in value reported in the consolidated statements of operations and comprehensive loss. The proceeds received from the Debenture less the initial amount allocated to the embedded derivative were allocated to the liability and were accreted over the life of the Debenture using the imputed rate of interest. Effective December 1, 2013, the Company changed its functional currency such that the conversion option no longer met the criteria for bifurcation and was prospectively reclassified to equity under ASC 815. The conversion option value at December 1, 2013 of $728,950 was reclassified from convertible debenture to additional paid-in capital. Effective October 1, 2014, the maturity date of the Debenture was extended to July 1, 2015. Under ASC 470-50, the change in the debt instrument was accounted for as a modification of debt. The increase in the fair value of the conversion option at the date of the modification, in the amount of $126,414, was recorded as a reduction in the carrying value of the debt instrument with a corresponding increase to additional paid-in-capital. The carrying amount of the debt instrument is accreted over the remaining life of the Debenture using an imputed rate of interest. Effective June 29, 2015, the July 1, 2015 maturity date for the Debenture was further extended to January 1, 2016. Under ASC 470-50, the change in the maturity date of the debt instrument resulted in a constructive extinguishment of the original convertible Debenture as the change in the fair value of the embedded conversion option was greater than 10% of the carrying amount of the debt. In accordance with ASC 470-50-40, the convertible Debenture has been recorded at fair value. The difference between the fair value of the convertible Debenture after the extension and the net carrying value of the convertible Debenture prior to the extension of $114,023 was recognized as a loss on the statement of operations and comprehensive loss. The carrying amount of the debt instrument will be accreted down to the face amount of the convertible Debenture over the remaining life of the Debenture using an imputed rate of interest. Accreted interest expense during the year ended November 30, 2015 is $27,103 (2014 - $127,261; 2013 - $96,556), and has been included in the consolidated statements of operations and comprehensive loss. In addition, the coupon interest on the Debenture for the year ended November 30, 2015 is $179,878 (2014 - $179,877; 2013 - $159,671), and has also been included in the consolidated statements of operations and comprehensive loss. Effective December 8, 2015, the January 1, 2016 maturity date for the Debenture was extended to July 1, 2016. |
Note 8 - Employee Costs Payable
Note 8 - Employee Costs Payable | 12 Months Ended |
Nov. 30, 2015 | |
Compensation Related Costs [Abstract] | |
Compensation Related Costs, General [Text Block] | 8. Employee costs payable As at November 30, 2015, the Company had $175,172 (2014 - $181,204) accrued vacation payable to certain employees. These balances are due on demand and therefore presented as current liabilities. |
Note 9 - Lease Obligations
Note 9 - Lease Obligations | 12 Months Ended |
Nov. 30, 2015 | |
Leases, Capital [Abstract] | |
Capital Leases in Financial Statements of Lessee Disclosure [Text Block] | 9. Lease obligations On December 1, 2015 the Company entered into a new lease agreement for the premises that it currently operates from, as well the adjoining property which is owned by the same landlord, for a 5 year term with a 5 year renewal option. The Company also has an option to purchase the combined properties after March 1, 2017 and up to November 30, 2020 based on a fair value purchase formula. The Company also leases various computers and equipment under capital leases. Future minimum lease payments under leases with terms of one year or more are as follows at November 30, 2015: Year ending November 30, Capital Lease Operating Lease $ $ 2016 23,366 152,072 2017 16,322 179,736 2018 - 179,736 2019 - 179,736 2020 - 179,736 39,688 871,016 Less: amounts representing interest at 14% 3,568 - 36,120 871,016 Less: current portion 20,460 179,736 Balance, long-term portion 15,660 691,280 |
Note 10 - Capital Stock
Note 10 - Capital Stock | 12 Months Ended |
Nov. 30, 2015 | |
Stockholders' Equity Note [Abstract] | |
Stockholders' Equity Note Disclosure [Text Block] | 10. Capital stock Authorized, issued and outstanding (a) The Company is authorized to issue an unlimited number of common shares, all without nominal or par value and an unlimited number of preference shares. As at November 30, 2015 the Company has 24,244,050 (2014 - 23,456,611; 2013 – 21,430,611) common shares issued and outstanding, and no preference shares issued and outstanding. Two officers and directors of IPC owned directly and through their family holding company (“Odidi Holdco”) 5,781,312 (2014 - 5,997,751) common shares or approximately 24% (2014 – 26%; 2013 – 28%) of IPC. Each common share of the Company entitles the holder thereof to one vote at any meeting of shareholders of the Company, except meetings at which only holders of a specified class of shares are entitled to vote. Holders of common shares of the Company are entitled to receive, as and when declared by the board of directors of the Company, dividends in such amounts as shall be determined by the board. The holders of common shares of the Company have the right to receive the remaining property of the Company in the event of liquidation, dissolution, or winding-up of the Company, whether voluntary or involuntary. The preference shares may at any time and from time to time be issued in one or more series. The board of directors will, by resolution, from time to time, before the issue thereof, fix the rights, privileges, restrictions and conditions attaching to the preference shares of each series. Except as required by law, the holders of any series of preference shares will not as such be entitled to receive notice of, attend or vote at any meeting of the shareholders of the Company. Holders of preference shares will be entitled to preference with respect to payment of dividends and the distribution of assets in the event of liquidation, dissolution or winding-up of the Company, whether voluntary or involuntary, or any other distribution of the assets of the Company among its shareholders for the purpose of winding up its affairs, on such shares over the common shares of the Company and over any other shares ranking junior to the preference shares. Authorized, issued and outstanding (b) In March 2013, the Company completed a registered direct unit offering for gross proceeds of $3,121,800 at a price of $1.72 per unit. The Company sold units comprised of an aggregate of 1,815,000 common shares and warrants to purchase an additional 453,750 common shares. The warrants are exercisable for a term of five years and an exercise price of $2.10 per common share. After placement agent fees and offering expenses, the Company received net proceeds from the offering of approximately $2.7 million. The Company determined the fair value of the warrant liability at issuance to be $407,558 using the Black-Scholes Option Pricing Model (Note 14). The direct costs related to the issuance of the common shares were $389,289 and were recorded as an offset against shareholders’ deficiency and the direct costs related to the issuance of the warrants were $57,531 and were recorded in the consolidated statements of operations and comprehensive loss. (c) In July 2013, the Company completed an underwritten public offering for gross proceeds of $3,075,000 at a price of $2.05 per unit. The Company sold units comprised of an aggregate of 1,500,000 common shares and warrants to purchase an additional 375,000 common shares. The warrants are exercisable for a term of five years and have an exercise price of $2.55 per common share. After placement agent fees and estimated offering expenses, the Company received net proceeds from the offering of approximately $2.5 million. The Company determined the fair value of the warrant liability at issuance to be $328,350 using the Black-Scholes Option Pricing Model (Note 14). The direct costs related to the issuance of the common shares were $467,989 and were recorded as an offset against shareholders’ deficiency and the direct costs related to the issuance of the warrants were $57,525 and were recorded in the consolidated statements of operations and comprehensive loss. (d) In November 2013, the Company entered into an equity distribution agreement with Roth Capital Partners, LLC (“Roth”), pursuant to which the Company may from time to time sell up to 5,305,484 of the Company’s common shares for up to an aggregate of $16.8 million (or such lesser amount as may be permitted under applicable securities laws and regulations) through at-the-market issuances on the NASDAQ or otherwise. Under the equity distribution agreement, the Company may at its discretion, from time to time, offer and sell common shares through Roth or directly to Roth for resale. The Company will pay Roth a commission, or allow a discount, of 2.75% of the gross proceeds that the Company receives from any additional sales of common shares under the equity distribution agreement. The Company has also agreed to reimburse Roth for certain expenses relating to the offering. Direct costs related to the facility of $311,640 (2014 - $392,110; 2013 - $419,777) incurred in the year ended November 30, 2015 were recorded as deferred cost of which $78,166 (2014 - $392,110; 2013 - $419,777) were recorded as share issuance costs against the cost of the shares issued and recognized in capital stock as at November 30, 2015. An aggregate of 1,689,500 common shares were sold for net proceeds of $6,390,670 in the year ended November 30, 2014. During the year ended November 30, 2015, an aggregate of 471,439 (2014 – 1,689,500) of our common shares were sold on NASDAQ for gross proceeds of $1,290,168 (2014 - $6,571,673) and net proceeds of $1,254,178 (2014 - $6,390,670) under the at-the-market offering program. The Company may in the future offer and sell its common shares with an aggregate purchase price of up to $8,938,160 pursuant to our at-the-market program. There can be no assurance that any additional shares will be sold under the at-the-market program. (e) Direct costs in the amount of $271,381 related to the Company’s filing of a base shelf prospectus filed in May 2014 and declared effective in June 2014 and certain other on-going costs related to the at the-market facility are recorded as deferred offering costs and are being amortized and recorded as share issuance cost against share offerings. |
Note 11 - Options
Note 11 - Options | 12 Months Ended |
Nov. 30, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] | 11. Options All grants of options to employees after October 22, 2009 are made from the Employee Stock Option Plan (the “Employee Stock Option Plan”). The maximum number of common shares issuable under the Employee Stock Option Plan is limited to 10% of the issued and outstanding common shares of the Company from time to time, or 2,424,405 based on the number of issued and outstanding common shares as at November 30, 2015. As at November 30, 2015, 2,298,067 options are outstanding and there were 126,338 options available for grant under the Employee Stock Option Plan. Each option granted allows the holder to purchase one common share at an exercise price not less than the closing price of the Company's common shares on the Toronto Stock Exchange on the last trading day prior to the grant of the option. Options granted under these plans generally have a maximum term of 10 years and generally vest over a period of up to three years. In August 2004, the Board of Directors of IPC Ltd. approved a grant of 2,763,940 performance-based stock options, to two executives who were also the principal shareholders of IPC Ltd. The vesting of these options is contingent upon the achievement of certain performance milestones. A total of 1,658,364 performance-based stock options have vested as of November 30, 2015. Under the terms of the original agreement these options were to expire in September 2014. Effective March 27, 2014, the Company’s shareholders approved the two year extension of the performance-based stock option expiry date to September 2016. As a result of the modification of the performance based stock option expiry date, the Company recorded additional compensation costs of $1,066,991 related to vested performance options during the year ended November 30, 2014. These options were outstanding as at November 30, 2015. In the year ended November 30, 2015, 355,000 (2014 – 479,001; 2013 – 391,000) stock options were granted to management, directors and employees. The fair value of each option grant is estimated on the date of grant using the Black-Scholes Option-Pricing Model, consistent with the provisions of ASC topic 718. Option pricing models require the use of subjective assumptions, changes in these assumptions can materially affect the fair value of the options. The Company calculates expected volatility based on historical volatility of the Company’s peer group that is publicly traded for options that have an expected life that is more than four years. For options that have an expected life of less than four years the Company uses its own volatility. The expected term, which represents the period of time that options granted are expected to be outstanding, is estimated based on an average of the term of the options. The risk-free rate assumed in valuing the options is based on the U.S. treasury yield curve in effect at the time of grant for the expected term of the option. The expected dividend yield percentage at the date of grant is Nil as the Company is not expected to pay dividends in the foreseeable future. The weighted average fair value of employee stock options granted was estimated using the following assumptions: November 30, 2015 November 30, 2014 November 30, 2013 Volatility 68.6 % 55.0 % 64.0 % Risk-free interest rate 0.580 % 1.45 % 1.00 % Expected life (in years) 5.00 5.60 7.00 Dividend yield - - - The weighted average grant date fair value per options granted $ 1.66 $ 2.10 $ 1.05 Details of stock option transactions are as follows: November 30, 2015 November 30, 2014 November 30, 2013 Number of options Weighted average exercise price per share Weighted average grant date fair value Number of options Weighted average exercise price per share Weighted average grant date fair value Number of options Weighted average exercise price per share Weighted average grant date fair value $ $ $ $ $ $ Outstanding, beginning of period, 4,858,208 3.96 2.21 4,455,072 3.97 2.21 4,139,059 4.86 2.76 Granted 355,000 2.52 1.66 479,001 3.86 2.10 391,000 1.81 1.05 Exercised (91,000 ) 2.34 1.86 (48,000 ) 2.45 1.07 (3,500 ) 1.81 0.09 Forfeiture (60,168 ) - - (27,832 ) - - (67,000 ) - - Expired (33 ) 770.13 493.31 (33 ) 709.18 709.18 (4,487 ) 654.48 403.93 Balance at end of period 5,062,007 3.89 2.21 4,858,208 3.96 2.21 4,455,072 3.97 2.21 Options exercisable, end of year 3,812,930 4.01 2.35 3,640,381 4.09 2.40 3,321,830 4.09 2.41 As of November 30, 2015, the exercise prices, weighted average remaining contractual life of outstanding options and weighted average grant date fair values were as follows: Options outstanding Options exercisable Exercise price Number outstanding Weighted average exercise price per share Weighted average remaining contract life (years) Weighted average grant due fair value Number exercisable Weighted average exercise price per share Weighted average grant date fair value $ $ $ $ Under 2.50 - - - - - - - 2.51 - 5.00 5,022,335 3.39 1.20 1.79 3,773,258 3.33 1.84 5.01 - 10.00 - - - - - - - 10.01 - 100.00 35,703 39.75 1.87 31.19 35,701 39.75 31.19 300.00 - 500.00 3,971 331.15 0.31 223.52 3,971 331.15 223.52 500.01 - 1,000.00 - - - - - - - 5,062,009 3.96 3,812,930 4.01 Total unrecognized compensation cost relating to the unvested performance-based stock options at November 30, 2015 is approximately $2,482,528 (2014 - $2,482,528). During the year ended November 30, 2013, a performance condition was met as the FDA approved an ANDA for a certain drug, resulting in the vesting of 276,394 performance-based stock options. As a result, a stock-based compensation expense of $442,800 relating to these stock options was recognized in research and development expense in the year ended November 30, 2013. For the year ended November 30, 2015, 91,000 options were exercised for a cash consideration of $167,962. For the year ended November 30, 2014, 48,000 options were exercised for a cash consideration of $116,984. For the year ended November 30, 2013, 3,500 options were exercised for a cash consideration of $5,965. The following table summarizes the components of stock-based compensation expense. November 30, 2015 November 30, 2014 November 30, 2013 $ $ $ Research and development 152,231 1,270,307 837,206 Selling, general and administrative 265,587 478,300 316,676 417,818 1,748,607 1,153,882 The Company has estimated its stock option forfeitures to be approximately 4% at November 30, 2015 (2014 – 3%; 2013 - Nil). |
Note 12 - Deferred Share Units
Note 12 - Deferred Share Units | 12 Months Ended |
Nov. 30, 2015 | |
Deferred Compensation Arrangements Disclosure [Abstract] | |
Deferred Compensation Arrangements Disclosure [Text Block] | 12. Deferred share units Effective May 28, 2010, the Company’s shareholders approved a Deferred Share Unit (“DSU”) Plan to grant DSUs to its non-management directors and reserved a maximum of 110,000 common shares for issuance under the plan. The DSU Plan permits certain non-management directors to defer receipt of all or a portion of their board fees until termination of the board service and to receive such fees in the form of common shares at that time. A DSU is a unit equivalent in value to one common share of the Company based on the trading price of the Company's common shares on the Toronto Stock Exchange. Upon termination of board service, the director will be able to redeem DSUs based upon the then market price of the Company's common shares on the date of redemption in exchange for any combination of cash or common shares as the Company may determine. During the year ended November 30, 2015, one non-management board member elected to receive director fees in the form of DSUs under the Company’s DSU Plan. As at November 30, 2015, 60,002 DSUs are outstanding and 49,998 DSUs are available for grant under the DSU Plan. November 30, 2015 November 30, 2014 November 30, 2013 $ shares $ shares $ shares Additional paid in capital 29,056 10,993 20,807 5,968 39,547 20,591 Accrued liability 8,051 4,272 3,759 1,338 9,181 2,325 |
Note 13 - Restricted Share Unit
Note 13 - Restricted Share Units | 12 Months Ended |
Nov. 30, 2015 | |
Disclosure Of Restricted Share Units [Abstract] | |
Disclosure Of Restricted Share Units [Text Block] | 13. Restricted share units Effective May 28, 2010, the Company’s shareholders approved a Restricted Share Unit (“RSU”) Plan for officers and employees of the Company and reserved a maximum of 330,000 common shares for issuance under the plan. The RSU Plan will form part of the incentive compensation arrangements available to officers and employees of the Company and its designated affiliates. An RSU is a unit equivalent in value to one common share of the Company. Upon vesting of the RSUs and the corresponding issuance of common shares to the participant, or on the forfeiture and cancellation of the RSUs, the RSUs credited to the participant’s account will be cancelled. No RSUs have been issued under the plan. |
Note 14 - Warrants
Note 14 - Warrants | 12 Months Ended |
Nov. 30, 2015 | |
Warrants [Abstract] | |
Warrants [Text Block] | 14. Warrants All the warrants issued to date by the Company are denominated in U.S. dollars and at issuance IPC’s functional currency was the Canadian dollar. In connection with the February 1, 2011 private offering, the Company issued 4,800,000 five year Series A common share purchase warrants to purchase one half of a share of common stock at an exercise price of $2.50 per whole share and 4,800,000 two year Series B common share purchase warrants to purchase one half of a share of common stock at an exercise price of $2.50 per whole share. The Company also issued to the placement agents 96,000 warrants to purchase a share of common stock at an exercise price of $3.125 per share. The holders of Series A common share purchase warrants and placement agents warrants are entitled to a cashless exercise under which the number of shares to be issued will be based on the number of shares for which warrants are exercised multiplied by the difference between market price of common share and the exercise price divided by the market price. Also under U.S. GAAP, warrants with the cashless exercise option satisfying the explicit net settlement criteria are considered a derivative liability. In the registered direct unit offering completed in March 2013, gross proceeds of $3,121,800 were received through the sale of the Company’s units comprised of common stock and warrants. The offering was the sale of 1,815,000 units at a price of $1.72 per unit, with each unit consisting of one share of common stock and a five year warrant to purchase 0.25 of a share of common stock at an exercise price of $2.10 per share (“March 2013 Warrants”). The fair value of the March 2013 Warrants of $407,558 were initially estimated at closing using the Black-Scholes Option Pricing Model, using volatilities of 63%, risk free interest rates of 0.40%, expected life of 5 years, and dividend yield of Nil. In the underwritten public offering completed in July 2013, gross proceeds of $3,075,000 were received through the sale of the Company’s units comprised of common stock and warrants. The offering was the sale of 1,500,000 units at a price of $2.05 per unit, each unit consisting of one share of common stock and a five year warrant to purchase 0.25 of a share of common stock at an exercise price of $2.55 per share (“July 2013 Warrants”). The fair value of the July 2013 Warrants of $328,350 were initially estimated at closing using the Black-Scholes Option Pricing Model, using volatilities of 62.4%, risk free interest rates of 0.58%, expected life of 5 years, and dividend yield of Nil. Effective December 1, 2013, the Company changed its functional currency to the U.S dollar such that the warrants are considered indexed to the Company’s own stock and were prospectively classified as equity under ASC 480. The warrant liability value at December 1, 2013 of $5,438,022 was reclassified from warrant liabilities to additional paid-in capital. The following table provides information on the 5,429,300 warrants outstanding and exercisable as of November 30, 2015 : Warrant Exercise price Number outstanding Expiry Shares issuable upon exercise Series A Warrants 2.50 2,835,000 February 1, 2016 1,417,500 March 2013 Warrants 2.10 1,724,300 March 22, 2018 431,075 July 2013 Warrants 2.55 870,000 July 31, 2018 217,500 5,429,300 2,066,075 During the year ended November 30, 2015, there were cash exercises in respect of 450,000 warrants (2014 – 481,000) and no cashless exercise (2014 – Nil) of warrants, resulting in the issuance of 225,000 (2014 – 288,500) and Nil (2014 – Nil) common shares, respectively. For the warrants exercised the Company recorded a charge to capital stock of $1,027,304 (2014 - $1,291,436) comprised of proceeds of $562,500 (2014 - $781,220) and the associated amount of $464,804 (2014 -510,216) previously recorded in additional paid in capital. Details of warrant transactions are as follows: Series A Warrants March 2013 Warrants July 2013 Warrants Total Outstanding, December 1, 2014 3,285,000 1,724,300 870,000 5,879,300 Exercised (450,000 ) - - (450,000 ) Outstanding, November 30, 2015 2,835,000 1,724,300 870,000 5,429,300 Series A Warrants Placement Agents Warrants March 2013 Warrants July 2013 Warrants Total Outstanding, December 1, 2013 3,670,000 96,000 1,724,300 870,000 6,360,300 Exercised (385,000 ) (96,000 ) - - (481,000 ) Outstanding, November 30, 2014 3,285,000 - 1,724,300 870,000 5,879,300 |
Note 15 - Income Taxes
Note 15 - Income Taxes | 12 Months Ended |
Nov. 30, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Tax Disclosure [Text Block] | 15. Income taxes The Company files Canadian income tax returns for its Canadian operations. Separate income tax returns are filed as locally required. The total provision for income taxes differs from the amount which would be computed by applying the Canadian income tax rate to loss before income taxes. The reasons for these differences are as follows: November 30, 2015 November 30, 2014 November 30, 2013 % % % Statutory income tax rate 26.5 26.5 26.5 $ $ $ Statutory income tax recovery (1,970,643 ) (1,021,934 ) (3,046,180 ) Increase (decrease) in income taxes Non-deductible expenses/ non-taxable income 164,723 417,879 1,446,008 Change in valuation allowance 1,804,406 (995,957 ) 1,248,045 Difference in net income before taxes between Canadian and U.S dollar - 160,316 - Investment tax credit (168,591 ) (9,114 ) (164,308 ) Financing costs booked to equity (23,348 ) (208,271 ) (307,262 ) FCR Election (253,856 ) - - Foreign exchange change - 985,544 746,667 True up of tax returns (15,991 ) 82,939 77,030 Tax loss expired, etc 463,300 588,598 - - - - The Company recognizes deferred tax assets and liabilities for the expected future tax consequences of temporary differences between the carrying amounts and the tax basis of assets and liabilities and certain carry-forward balances. Significant temporary differences and carry-forwards are as follows: November 30, 2015 November 30, 2014 November 30, 2013 $ $ $ Deferred tax assets Non-capital loss carry-forwards 6,019,380 6,528,099 6,831,991 Book and tax basis differences on assets and liabilities 2,854,916 1,006,667 992,378 Other - 47,180 37,136 Ontario harmonization tax credit - 371,160 399,831 Investment tax credit - 2,327,722 2,324,856 Undeducted research and development expenditures 5,394,426 2,183,486 2,180,640 14,268,722 12,464,314 12,766,832 Valuation allowances for deferred tax assets (14,268,722 ) (12,464,314 ) (12,766,832 ) Net deferred tax assets - - - At November 30, 2015, the Company had cumulative operating losses available to reduce future years’ income for income tax purposes: Canadian income tax losses expiring in the year ended November 30, Federal $ 2028 (82,315 ) 2029 (555,540 ) 2030 (3,373,079 ) 2031 (5,532,739 ) 2032 (5,750,052 ) 2033 (4,562,538 ) 2034 (149,927 ) 2035 (2,634,824 ) (22,641,014 ) United States Federal income tax losses expiring in the year ended November 30, $ 2025 (15,911 ) 2026 (34,523 ) 2032 (5,312 ) (55,746 ) At November 30, 2015, the Company had a cumulative carry-forward pool of Federal SR&ED expenditures in the amount of approximately $12,408,000 (2014 - $10,215,000) which can be carried forward indefinitely. As at November 30, 2014, the Company had approximately $371,000 of Ontario harmonization credits, which will expire in the November 30, 2015 taxation year. At November 30, 2015, the Company had approximately $2,710,000 (2014 - 2,328,000) of unclaimed ITCs which expire from 2025 to 2035. These credits are subject to a full valuation allowance as they are not more likely than not to be realized. The net deferred tax assets have been fully offset by a valuation allowance because it is not more likely than not the Company will realize the benefit of these deferred tax assets. The Company does not have any recognized tax benefits as of November 30, 2015 or November 30, 2014. The Company files unconsolidated federal income tax returns domestically and in foreign jurisdictions. The Company has open tax years from 2008 to 2015 with tax jurisdictions including Canada and the U.S. These open years contain certain matters that could be subject to differing interpretations of applicable tax laws and regulations, as they relate to amount, timing, or inclusion of revenues and expenses. The Company did not incur any interest expense related to uncertain tax positions in 2015, 2014 and 2013 or any penalties in those years. The Company had no accrued interest and penalties as of November 30, 2015 and 2014. The Company had no unrecognized tax benefits in 2015, 2014 and 2013, and the Company does not expect that the unrecognized tax benefit will increase within the next twelve months. |
Note 16 - Contingencies
Note 16 - Contingencies | 12 Months Ended |
Nov. 30, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies Disclosure [Text Block] | 16. Contingencies From time to time, the Company may be exposed to claims and legal actions in the normal course of business. As at November 30, 2015, and continuing as at February 25, 2016, the Company is not aware of any pending or threatened material litigation claims against the Company, other than the ones described in the following paragraphs. Pursuant to an arrangement agreement between Vasogen and Cervus LP (“Cervus”) dated August 14, 2009 (the "Cervus Agreement"), Vasogen and a Vasogen subsidiary (“New Vasogen”) entered into an indemnity agreement (the "Indemnity Agreement"), which became an obligation of the Company as of October 22, 2009. The Indemnity Agreement is designed to provide Cervus with indemnification for claims relating to Vasogen's and New Vasogen's business that are brought against Cervus in the future, subject to certain conditions and limitations. The Company's obligations under the Indemnity Agreement relating to the Tax pools defined in the Indemnity Agreement are limited to an aggregate of C$1,455,000 with a threshold amount of C$50,000 before there is an obligation to make a compensation payment. The Company does not presently expect to have to pay any amount under this Indemnity Agreement as the likelihood of payment is considered by management to be remote. On or about August 8, 2014, Pfizer Inc., Wyeth LLC, Wyeth Pharmaceuticals Inc., and PF Prism C.V. filed a complaint against Intellipharmaceutics Corp. and Intellipharmaceutics International Inc. for alleged patent infringement in the United States District Court for the District of Delaware in respect of Intellipharmaceutics’ development of a generic of the branded drug Pristiq® (desvenlafaxine extended release tablets in 50 and 100 mg dosage strengths). A similar complaint for patent infringement was filed on August 11, 2014 by the same parties in the District Court for the Southern District of New York. The above-noted litigation has been settled effective February 2, 2015, and the litigation has been dismissed, without prejudice and without costs. All other terms of the settlement are confidential. On or about September 26, 2014, Aziende Chimiche Riunite Angelini Francesco A.C.R.A.F. S.p.A. and Angelini Pharma Inc. filed a complaint against Intellipharmaceutics International Inc., Intellipharmaceutics Corp., and Intellipharmaceutics Ltd. for alleged patent infringement in the United States District Court for the District of Delaware in respect of Intellipharmaceutics’ development of a generic of the branded drug Oleptro™ (trazodone hydrochloride extended-release tablets in 150 and 300 mg dosage strengths). The above-noted litigation has been settled effective September 21, 2015, and the litigation has been dismissed, without prejudice and without costs. All other terms of the settlement are confidential. |
Note 17 - Financial Instruments
Note 17 - Financial Instruments | 12 Months Ended |
Nov. 30, 2015 | |
Disclosure Text Block Supplement [Abstract] | |
Financial Instruments Disclosure [Text Block] | 17. Financial instruments (a) Fair values The Company follows ASC topic 820, “Fair Value Measurements” which defines fair value, establishes a framework for measuring fair value, and expands disclosures about fair value measurements. The provisions of ASC topic 820 apply to other accounting pronouncements that require or permit fair value measurements. ASC topic 820 defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants at the measurement date; and establishes a three level hierarchy for fair value measurements based upon the transparency of inputs to the valuation of an asset or liability as of the measurement date. Inputs refers broadly to the assumptions that market participants would use in pricing the asset or liability, including assumptions about risk. To increase consistency and comparability in fair value measurements and related disclosures, the fair value hierarchy prioritizes the inputs to valuation techniques used to measure fair value into three broad levels. The three levels of the hierarchy are defined as follows: Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities. Level 2 inputs are inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly for substantially the full term of the financial instrument. Level 3 inputs are unobservable inputs for asset or liabilities. The categorization within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement. (i) The Company calculates expected volatility based on historical volatility of the Company’s peer group that is publicly traded for options that have an expected life that is more than four years. (ii) The Company calculates the interest rate for the conversion option based on the Company’s estimated cost of raising capital. An increase/decrease in the volatility and/or an decrease/increase in the discount rate would have resulted in an increase/decrease in the fair value of the conversion option and warrant liabilities. The change in fair value of the conversion option and the warrant liabilities was recorded as a fair value adjustment of derivative liabilities in the consolidated statements of operations and comprehensive loss. Reconciliation of Level 3 fair value measurements: November 30, 2014 Conversion Option Warrant liability Total $ $ $ Opening balance 728,950 5,438,022 6,166,972 Transfer out from level 3 (a) (728,950 ) (5,438,022 ) (6,166,972 ) Closing balance - - - (a) As discussed in Note 7 and 14, the conversion option value of $728,950 and the warrant value of $5,438,022 at December 1, 2013 were reclassified to additional paid-in capital due to the change in functional currency. (b) The total net loss related to the conversion option and warrant liability has been recorded under fair value adjustment derivative liabilities on the consolidated statements of operations and comprehensive loss. Fair value of financial assets and financial liabilities that are not measured at fair value on a recurring basis are as follows: November 30, 2015 November 30, 2014 Carrying amount Fair value Carrying amount Fair value $ $ $ $ Financial Liabilities Convertible debt (iii) 1,518,429 1,481,663 1,377,302 1,379,808 (iii) The Company calculates the interest rate for the convertible debt and due to related parties based on the Company’s estimated cost of raising capital and uses the discounted cash flow model to calculate the fair value of the convertible debt and the amounts due to related parties. The carrying values of cash, accounts receivable, accounts payable, accrued liabilities and employee cost payable approximates their fair values because of the short-term nature of these instruments. (b) Interest rate and credit risk Interest rate risk is the risk that the value of a financial instrument might be adversely affected by a change in interest rates. The Company does not believe that the results of operations or cash flows would be affected to any significant degree by a sudden change in market interest rates, relative to interest rates on cash and cash equivalents, due to related parties and capital lease obligations due to the short-term nature of these balances. Trade accounts receivable potentially subjects the Company to credit risk. The Company provides an allowance for doubtful accounts equal to the estimated losses expected to be incurred in the collection of accounts receivable. The following table sets forth details of the aged accounts receivable that are not overdue as well as an analysis of overdue amounts and the related allowance for doubtful accounts: November 30, 2015 November 30, 2014 $ $ Total accounts receivable 478,674 1,011,133 Less allowance for doubtful accounts - - Total accounts receivable, net 478,674 1,011,133 Not past due 453,662 982,313 Past due for more than 31 days but no more than 60 days 5,003 5,950 Past due for more than 91 days but no more than 120 days 20,009 22,870 Total accounts receivable, net 478,674 1,011,133 Financial instruments that potentially subject the Company to concentration of credit risk consist principally of uncollateralized accounts receivable. The Company’s maximum exposure to credit risk is equal to the potential amount of financial assets. For the years ended November 30, 2015 and November 30, 2014, Par accounted for substantially all the revenue and all the accounts receivable of the Company. The Company is also exposed to credit risk at period end from the carrying value of its cash. The Company manages this risk by maintaining bank accounts with a Canadian Chartered Bank. The Company’s cash is not subject to any external restrictions. (c) Foreign exchange risk The Company has balances in Canadian dollars that give rise to exposure to foreign exchange (“FX”) risk relating to the impact of translating certain non-U.S. dollar balance sheet accounts as these statements are presented in U.S. dollars. A strengthening U.S. dollar will lead to a FX loss while a weakening U.S. dollar will lead to a FX gain. For each Canadian dollar balance of $1.0 million, a +/- 10% movement in the Canadian currency held by the Company versus the US dollar would affect the Company’s loss and other comprehensive loss by $0.1 million. Balances denominated in foreign currencies that are considered financial instruments are as follows: November 30, 2015 November 30, 2014 Canadian U.S. Canadian U.S. FX rates used to translate to U.S. 1.3353 1.1440 $ $ $ $ Assets Cash 116,096 86,944 510,459 446,205 116,096 86,944 510,459 446,205 Liabilities Accounts payable 1,372,196 1,027,631 379,014 331,306 Employee cost payable 233,906 175,172 207,297 181,204 Capital lease 48,231 36,120 25,538 22,323 1,654,332 1,238,923 611,849 534,833 Net exposure (1,538,236 ) (1,151,979 ) (101,390 ) (88,628 ) (d) Liquidity risk Liquidity risk is the risk that the Company will encounter difficulty raising liquid funds to meet commitments as they fall due. In meeting its liquidity requirements, the Company closely monitors its forecasted cash requirements with expected cash drawdown. The following are the contractual maturities of the undiscounted cash flows of financial liabilities as at November 30, 2015: November 30, 2015 Less than 3 months 3 to 6 months 6 to 9 months 9 months 1 year Greater than 1 year Total $ $ $ $ $ $ Third parties Accounts payable 3,027,974 - - - - 3,027,974 Accrued liabilities 454,290 - - - - 454,290 Capital lease (note 9) 4,910 5,045 5,182 5,323 15,660 36,120 Related parties Employee costs payable (Note 8) 175,172 - - - - 175,172 Convertible debenture (Note 7) 1,515,770 - - - - 1,515,770 5,178,116 5,045 5,182 5,323 15,660 5,209,326 |
Note 18 - Segmented Information
Note 18 - Segmented Information | 12 Months Ended |
Nov. 30, 2015 | |
Segment Reporting [Abstract] | |
Segment Reporting Disclosure [Text Block] | 18. Segmented information The Company's operations comprise a single reportable segment engaged in the research, development and manufacture of novel and generic controlled-release and targeted-release oral solid dosage drugs. As the operations comprise a single reportable segment, amounts disclosed in the financial statements for revenue, loss for the year, depreciation and total assets also represent segmented amounts. In addition, all of the Company's long-lived assets are in Canada. The Company’s license and commercialization agreement with Par accounts for substantially all of the revenue of the Company. November 30, 2015 November 30, 2014 November 30, 2013 $ $ $ Revenue United States 4,093,781 8,769,693 1,527,474 4,093,781 8,769,693 1,527,474 Total assets Canada 5,224,299 7,875,035 4,379,501 Total property and equipment Canada 1,759,438 1,618,897 1,231,309 |
Accounting Policies, by Policy
Accounting Policies, by Policy (Policies) | 12 Months Ended |
Nov. 30, 2015 | |
Accounting Policies [Abstract] | |
Consolidation, Policy [Policy Text Block] | Basis of presentation (a) Basis of consolidation These consolidated financial statements include the accounts of the Company and its wholly owned operating subsidiaries, IPC Ltd., Intellipharmaceutics Corp. (“IPC Corp”), and Vasogen Corp. All inter-company accounts and transactions have been eliminated on consolidation. |
Use of Estimates, Policy [Policy Text Block] | Use of estimates The preparation of the consolidated financial statements in conformity with accounting principles generally accepted in the United States of America (“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 revenue and expenses during the year. Actual results could differ from those estimates. Areas where significant judgment is involved in making estimates are: the determination of the functional currency; the fair values of financial assets and liabilities; the determination of units of accounting for revenue recognition; the accrual of licensing and milestone revenue; and forecasting future cash flows for assessing the going concern assumption. |
Cash and Cash Equivalents, Policy [Policy Text Block] | Cash and cash equivalents The Company considers all highly liquid securities with an original maturity of three months or less to be cash equivalents. Cash equivalent balances consist of bankers’ acceptances and bank accounts with variable, market rates of interest. The financial risks associated with these instruments are minimal and the Company has not experienced any losses from investments in these securities. The carrying amount of cash and cash equivalents approximates its fair value due to its short-term nature. |
Receivables, Policy [Policy Text Block] | Accounts receivable The Company reviews its sales and accounts receivable aging and determines whether an allowance for doubtful accounts is required. |
Fair Value of Financial Instruments, Policy [Policy Text Block] | Financial instruments The Company evaluates all of its financial instruments to determine if such instruments are derivatives or contain features that qualify as embedded derivatives. For derivative financial instruments that are classified as liabilities, the derivative instrument is initially recorded at its fair value using the appropriate valuation methodology and is then re-valued at each reporting date, with changes in the fair value reported in the consolidated statements of operations and comprehensive loss. |
Regulatory Income Taxes, Policy [Policy Text Block] | Investment tax credits The investment tax credits (“ITC") receivable are amounts considered recoverable from the Canadian federal and provincial governments under the Scientific Research & Experimental Development (“SR&ED”) incentive program. The amounts claimed under the program represent the amounts based on management estimates of eligible research and development costs incurred during the year. Realization is subject to government approval. Any adjustment to the amounts claimed will be recognized in the year in which the adjustment occurs. Refundable ITCs claimed relating to capital expenditures are credited to property and equipment. Refundable ITCs claimed relating to current expenditures are netted against research and development expenditures. |
Property, Plant and Equipment, Policy [Policy Text Block] | Property and equipment Property and equipment are recorded at cost. Equipment acquired under capital leases are recorded net of imputed interest, based upon the net present value of future payments. Assets under capital leases are pledged as collateral for the related lease obligation. Repairs and maintenance expenditures are charged to operations; major betterments and replacements are capitalized. Depreciation bases and rates are as follows: Assets Basis Rate Computer equipment Declining balance 30% Computer software Declining balance 50% Furniture and fixtures Declining balance 20% Laboratory equipment Declining balance 20% Leasehold improvements Straight line Over term of lease Leasehold improvements and assets acquired under capital leases are depreciated over the term of their useful lives or the lease period, whichever is shorter. The charge to operations resulting from depreciation of assets acquired under capital leases is included with depreciation expense. |
Impairment or Disposal of Long-Lived Assets, Policy [Policy Text Block] | Impairment of long-lived assets Long-lived assets are reviewed for impairment when events or circumstances indicate that the carrying value of an asset may not be recoverable. For assets that are to be held and used, impairment is recognized when the sum of estimated undiscounted cash flows associated with the asset or group of assets is less than its carrying value. If impairment exists, an adjustment is made to write the asset down to its fair value, and a loss is recorded as the difference between the carrying value and fair value. |
Warrants [Policy Text Block] | Warrants The Company previously issued warrants as described in Notes 10 and 14. In fiscal 2013 the warrants were presented as a liability because they did not meet the criteria of Accounting Standard Codification (“ASC”) topic 480 Distinguishing Liabilities from Equity for equity classification. Subsequent changes in the fair value of the warrants were recorded in the consolidated statements of operations and comprehensive loss. As discussed in Note 3(m) the Company changed its functional currency effective December 1, 2013 such that these warrants met the criteria for prospective equity classification in ASC topic 480, and the U.S. dollar translated amount of the warrant liability at December 1, 2013 became the amount reclassified to equity. |
Convertible Debt [Policy Text Block] | Convertible debenture In fiscal 2013, the Company issued an unsecured convertible debenture in the principal amount of $1.5 million (the “Debenture”) as described in Note 7. At issuance the conversion option was bifurcated from its host contract and the fair value of the conversion option was characterized as an embedded derivative upon issuance as it met the criteria of ASC topic 815 Derivatives and Hedging. Subsequent changes in the fair value of the embedded derivative were recorded in the consolidated statements of operations and comprehensive loss. The proceeds received from the Debenture less the initial amount allocated to the embedded derivative were allocated to the liability and were accreted over the life of the Debenture using the imputed rate of interest. As discussed in Note 3(m) the Company changed its functional currency effective December 1, 2013 such that the conversion option no longer met the criteria for bifurcation and was prospectively reclassified to shareholders equity under ASC Topic 815 at the U.S. dollar translated amount at December 1, 2013. |
Revenue Recognition, Policy [Policy Text Block] | Revenue recognition The Company accounts for revenue in accordance with the provision of ASC topic 605 Revenue Recognition. The Company earns revenue from non-refundable upfront fees, milestone payments upon achievement of specified research or development, exclusivity milestone payments and licensing payments on sales of resulting products and other incidental services. Revenue is realized or realizable and earned when persuasive evidence of an arrangement exists, delivery has occurred or services have been rendered, the price to the customer is fixed or determinable, and collectability is reasonably assured. From time to time, the Company enters into transactions that represent multiple-element arrangements. Management evaluates arrangements with multiple deliverables to determine whether the deliverables represent one or more units of accounting for the purpose of revenue recognition. A delivered item is considered a separate unit of accounting if the delivered item has stand-alone value to the customer, the fair value of any undelivered items can be reliably determined, and the delivery of undelivered items is probable and substantially in the Company's control. The relevant revenue recognition accounting policy is applied to each separate unit of accounting. Licensing The Company recognizes revenue from the licensing of the Company's drug delivery technologies, products and product candidates. Licensing revenue is recognized as earned in accordance with the contract terms when the amounts can be reasonably estimated and collectability is reasonably assured. The Company has a license and commercialization agreement with Par Pharmaceutical Inc. (“Par”). Under the exclusive territorial license rights granted to Par, the agreement requires that Par manufacture, promote, market, sell and distribute the product. Licensing revenue amounts receivable by the Company under this agreement are calculated and reported to the Company by Par, with such amounts generally based upon net product sales and net profit which include estimates for chargebacks, rebates, product returns, and other adjustments. Licensing revenue payments received by the Company from Par under this agreement are not subject to deductions for chargebacks, rebates, product returns, and other pricing adjustments. Based on this arrangement and the guidance per ASC topic 605, the Company records licensing revenue as earned in the consolidated statements of operations and comprehensive loss. Milestones The milestone method recognizes revenue on substantive milestone payments in the period the milestone is achieved. Milestones are considered substantive if all of the following conditions are met: (i) the milestone is commensurate with either the vendor’s performance to achieve the milestone or the enhancement of the value of the delivered item or items as a result of a specific outcome resulting from the vendor’s performance to achieve the milestone; (ii) the milestone relates solely to past performance; and (iii) the milestone is reasonable relative to all of the deliverables and payment terms within the arrangement. Non-substantive milestone payments that might be paid to the Company based on the passage of time or as a result of a partner’s performance are allocated to the units of accounting within the arrangement; they are recognized as revenue in a manner similar to those units of accounting. In connection with the license and commercialization agreement with Par, for each day up to a maximum of 180 days from the date of launch if the Company’s product is the only generic in the market or if there is only one generic competitor, a milestone payment is earned. The Company recognized milestone revenue of $Nil (2014 - $354,153; 2013 – $43,209) upon achievement of the milestone Research and development Under arrangements where the license fees and research and development activities can be accounted for as a separate unit of accounting, non-refundable upfront license fees are deferred and recognized as revenue on a straight-line basis over the expected term of the Company's continued involvement in the research and development process. Deferred revenue Deferred revenue represents the funds received from clients, for which the revenues have not yet been earned, as the milestones have not been achieved, or in the case of upfront fees for drug development, where the work remains to be completed. During the year ended November 30, 2015, the Company received an amount of $150,000 (2014 - $Nil), and recorded it as deferred revenue, as it did not meet the criteria for recognition. Other incidental services Incidental services which the Company may provide from time to time include, consulting advice provided to other organizations regarding FDA standards. Revenue is earned and realized when all of the following conditions are met: (i) there is persuasive evidence of an arrangement; (ii) service has been rendered; (iii) the sales price is fixed or determinable; and (iv) collectability is reasonably assured. |
Research and Development Expense, Policy [Policy Text Block] | Research and development costs Research and development costs related to continued research and development programs are expensed as incurred in accordance with ASC topic 730. However, materials and equipment are capitalized and amortized over their useful lives if they have alternative future uses. |
Income Tax, Policy [Policy Text Block] | Income taxes The Company uses the liability method of accounting for income taxes. Under the 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 and for losses and tax credit carry forwards. Significant judgment is required in determining whether deferred tax assets will be realized in full or in part. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the year that includes the date of enactments. A valuation allowance is provided for the portion of deferred tax assets that is more likely than not to remain unrealized. The Company accounts in accordance with ASC topic 740-10. This ASC topic requires that uncertain tax positions are evaluated in a two-step process, whereby (i) the Company determines whether it is more likely than not that the tax positions will be sustained based on the technical merits of the position and (ii) those tax positions that meet the more likely than not recognition threshold, the Company would recognize the largest amount of tax benefit that is greater than 50% likely of being realized upon ultimate settlement with the related tax authority. Changes in recognition or measurement are reflected in the period in which the change in judgment occurs. The cumulative effects of the application of the provisions of ASC topic 740-10 are described in Note 15. The Company records any interest related to income taxes in interest expense and penalties in selling, general and administrative expense. |
Stockholders' Equity Note, Redeemable Preferred Stock, Issue, Policy [Policy Text Block] | Share issue costs Share issue costs are recorded as a reduction of the proceeds from the issuance of capital stock. |
Foreign Currency Transactions and Translations Policy [Policy Text Block] | Translation of foreign currencies Previously, operations of the Company were comprised of only research and development activities conducted in Canada. The Company generated no cash from operations, though funding for the operations (as in previous years) was primarily through U.S. dollar equity financings. The functional currency was assessed to be Canadian dollars. By obtaining the final approval of the Company’s generic Focalin XR® (dexmethylphenidate hydrochloride extended-release) capsules for the 15 and 30 mg strengths with Par in November 2013, the Company generated and collected U.S. dollar revenues in the year ended November 30, 2014 which represents a significant and material change in economic facts and circumstances. Management had assessed the functional currency for the fiscal year commencing December 1, 2013 and concluded that the Company and its wholly owned operating subsidiaries should be measured using the U.S. dollar as the functional currency. Effective December 1, 2013, the change in functional currency was applied on a prospective basis. The U.S. dollar translated amounts of nonmonetary assets and liabilities at December 1, 2013 became the historical accounting basis for those assets and liabilities at December 1, 2013. The impact of the change in functional currency on the measurement and reporting of warrants and the Debenture is discussed in Note 3(g) and 3(h) above. The change in functional currency resulted in no change in cumulative translation adjustment going forward as the Company and its wholly owned operating subsidiaries have U.S. dollar functional currencies. In respect of other transactions denominated in currencies other than the Company and its wholly owned operating subsidiaries’ functional currencies, the monetary assets and liabilities are translated at the period end rates. Revenue and expenses are translated at rates of exchange prevailing on the transaction dates. All of the exchange gains or losses resulting from these other transactions are recognized in the consolidated statements of operations and comprehensive loss. The Company’s reporting currency in the year ended November 30, 2015, 2014 and 2013 was the U.S. dollar. |
Share-based Compensation, Option and Incentive Plans Policy [Policy Text Block] | Stock-based compensation The Company has a stock-based compensation plan which authorizes the granting of various equity-based incentives including stock options and restricted share units (“RSU”s). Stock-based compensation expense recognized during the period is based on the value of stock-based payment awards that are ultimately expected to vest. The Company estimates forfeitures at the time of grant and revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates. The stock-based compensation expense is recorded in the consolidated statements of operations and comprehensive loss under research and development expense and under selling, general and administration expense. Note 11 provides supplemental disclosure of the Company's stock options. |
Deferred Share Units [Policy Text Block] | Deferred Share Units Deferred Share Units (“DSU”s) are valued based on the trading price of the Company’s common shares on the Toronto Stock Exchange. The Company records the value of the DSU’s owing to non-management board members in the consolidated statement of shareholders equity (deficiency). |
Earnings Per Share, Policy [Policy Text Block] | Loss per share Basic loss per share (“EPS”) is computed by dividing the loss attributable to common shareholders by the weighted average number of common shares outstanding. Diluted EPS reflects the potential dilution that could occur from common shares issuable through the exercise or conversion of stock options, restricted stock awards, warrants and convertible securities. In certain circumstances, the conversion of options, warrants and convertible securities are excluded from diluted EPS if the effect of such inclusion would be anti-dilutive. The dilutive effect of stock options is determined using the treasury stock method. Stock options and warrants to purchase 7,128,082, 7,149,283 and 7,034,647 common shares of the Company during fiscal 2015, 2014, and 2013, respectively, were not included in the computation of diluted EPS because the Company has incurred a loss for the years ended November 30, 2015, 2014 and 2013 as the effect would be anti-dilutive. |
Comprehensive Income, Policy [Policy Text Block] | Comprehensive loss The Company follows ASC topic 220. This statement establishes standards for reporting and display of comprehensive (loss) income and its components. Comprehensive loss is net loss plus certain items that are recorded directly to shareholders' equity. Other than foreign exchange gains and losses arising from cumulative translation adjustments, the Company has no other comprehensive loss items. |
Fair Value Measurement, Policy [Policy Text Block] | Fair value measurement Under ASC topic 820, fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (i.e., an exit price). ASC topic 820 establishes a hierarchy for inputs to valuation techniques used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs be used when available. Observable inputs are inputs that reflect assumptions market participants would use in pricing the asset or liability developed based on market data obtained from sources independent of the Company. Unobservable inputs are inputs that reflect the Company's own assumptions about the assumptions market participants would use in pricing the asset or liability developed based on the best information available in the circumstances. There are three levels to the hierarchy based on the reliability of inputs, as follows: ● Level 1 - Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets. ● Level 2 - Inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. Level 2 inputs include quoted prices for similar assets or liabilities in active markets, or quoted prices for identical or similar assets and liabilities in markets that are not active. ● Level 3 - Unobservable inputs for the asset or liability. The degree of judgment exercised by the Company in determining fair value is greatest for instruments categorized in Level 3. |
New Accounting Pronouncements, Policy [Policy Text Block] | Future Accounting pronouncements In May 2014, the FASB issued Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers, requiring an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. The updated standard will replace most existing revenue recognition guidance in U.S. GAAP when it becomes effective. In August 2015, the FASB issued ASU No.2015-14, which defers the effective date of the FASB’s revenue standard, ASU No. 2014-09, by one year for all entities and permits early adoption on a limited basis. The standard is effective for annual reporting periods (including interim reporting periods within those periods) beginning after December 15, 2017. Early adoption is permitted as of annual reporting periods beginning after December 15, 2016, including interim reporting periods within those annual periods. The Company is in the process of evaluating the impact of adoption on the Company’s financial position, results of operations or cash flow. In June 2014, the FASB issued ASU No. 2014-12 in response to the consensus of the Emerging Issues Task Force on EITF Issue 13-D.2 The ASU clarifies that entities should treat performance targets that can be met after the requisite service period of a share-based payment award as performance conditions that affect vesting. Therefore, an entity would not record compensation expense (measured as of the grant date without taking into account the effect of the performance target) related to an award for which transfer to the employee is contingent on the entity’s satisfaction of a performance target until it becomes probable that the performance target will be met. No new disclosures are required under the ASU. The ASU’s guidance is effective for all entities for reporting periods (including interim periods) beginning after December 15, 2015. Early adoption is permitted. The Company does not expect the adoption of the amendments to have a material impact on the Company’s financial position, results of operations or cash flow. In 2014, the FASB issued ASU No. 2014-15, which provides guidance on determining when and how to disclose going-concern uncertainties in the financial statements. The new standard requires management to perform interim and annual assessments of an entity’s ability to continue as a going concern within one year of the date the financial statements are issued. An entity must provide certain disclosures if “conditions or events raise substantial doubt about the entity’s ability to continue as a going concern.” The ASU applies to all entities and is effective for annual periods ending after December 15, 2016, and interim periods thereafter, with early adoption permitted.The Company is in the process of evaluating the amendments to determine if they have a material impact on the Company’s financial position, results of operations or cash flow. In November 2014, the FASB issued ASU No. 2014-16, Derivatives and Hedging (Topic 815): Determining Whether the Host Contract in a Hybrid Financial Instrument Issued in the Form of a Share is More Akin to Debt or to Equity, which applies to any entity that is an issuer of, or invests in, hybrid financial instruments that are issued in the form of a share. The amendments in ASU No. 2014-16 clarify that an entity must take into account all relevant terms and features when reviewing the nature of the host contract. Additionally, the amendments state that no one term or feature would define the host contract’s economic characteristics and risks. Instead, the economic characteristics and risks of the hybrid financial instrument as a whole would determine the nature of the host contract. ASU No. 2014-16’s amendments will be effective for public business entities for fiscal years, and interim periods within those fiscal years, starting after December 15, 2015, with early adoption permitted. The Company is in the process of evaluating the amendments to determine if they have a material impact on the Company’s financial position, results of operations or cash flow. In February, 2015, the FASB issued ASU No. 2015-02, Consolidation (Topic 810): Amendments to the Consolidation Analysis. ASU No. 2015-02 provides guidance on the consolidation evaluation for reporting organizations that are required to evaluate whether they should consolidate certain legal entities such as limited partnerships, limited liability corporations, and securitization structures (collateralized debt obligations, collateralized loan obligations, and mortgage-backed security transactions). ASU No. 2015-02 is effective for periods beginning after December 15, 2015, with early adoption permitted. The Company is in the process of evaluating the amendments to determine if they have a material impact on the Company’s financial position, results of operations or cash flow. In April 2015, the FASB issued ASU No. 2015-03, Interest—Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs. ASU No. 2015-03 is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015 with early adoption permitted. The Company is in the process of evaluating the amendments to determine if they have a material impact on the Company’s financial position, results of operations or cash flow. In November 2015 the FASB issued ASU No. 2015-17, “Balance Sheet Classification of Deferred Taxes,” as part of its simplification initiative. Under the ASU, organizations that present a classified balance sheet are required to classify all deferred taxes as noncurrent assets or noncurrent liabilities. ASU No. 2015-17 is effective for annual periods beginning after December 15, 2016, and interim periods within those annual periods. The Company is in the process of evaluating the amendments to determine if they have a material impact on the Company’s financial position, results of operations or cash flow. In January 2016, the FASB issued ASU 2016-01, which makes limited amendments to the guidance in U.S. GAAP on the classification and measurement of financial instruments. The new standard significantly revises an entity’s accounting related to (1) the classification and measurement of investments in equity securities and (2) the presentation of certain fair value changes for financial liabilities measured at fair value. It also amends certain disclosure requirements associated with the fair value of financial instruments. ASU No. 2016-01 is effective for fiscal years beginning after December 15, 2017, and interim periods within those annual periods. The Company is in the process of evaluating the amendments to determine if they have a material impact on the Company’s financial position, results of operations or cash flow. |
Note 3 - Significant Accounti26
Note 3 - Significant Accounting Policies (Tables) | 12 Months Ended |
Nov. 30, 2015 | |
Accounting Policies [Abstract] | |
Schedule of Depreciation Rates [Table Text Block] | Assets Basis Rate Computer equipment Declining balance 30% Computer software Declining balance 50% Furniture and fixtures Declining balance 20% Laboratory equipment Declining balance 20% Leasehold improvements Straight line Over term of lease |
Note 5 - Property and Equipme27
Note 5 - Property and Equipment (Tables) | 12 Months Ended |
Nov. 30, 2015 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment [Table Text Block] | November 30, 2015 Cost Accumulated amortization Net book value $ $ $ Computer equipment 293,870 214,525 79,345 Computer software 124,151 110,860 13,291 Furniture and fixtures 129,860 104,089 25,771 Laboratory equipment 3,483,398 1,968,088 1,515,310 Leasehold improvements 1,142,122 1,142,122 - Laboratory equipment under capital lease 276,300 155,203 121,097 Computer equipment under capital lease 76,458 71,834 4,624 5,526,159 3,766,721 1,759,438 November 30, 2014 Cost Accumulated amortization Net book value $ $ $ Computer equipment 247,335 196,237 51,098 Computer software 119,151 99,027 20,124 Furniture and fixtures 126,690 98,406 28,284 Laboratory equipment 3,019,713 1,658,299 1,361,414 Leasehold improvements 1,142,122 1,142,122 - Laboratory equipment under capital lease 276,300 124,928 151,372 Computer equipment under capital lease 76,458 69,853 6,605 5,007,769 3,388,872 1,618,897 |
Note 6 - Accrued Liabilities (T
Note 6 - Accrued Liabilities (Tables) | 12 Months Ended |
Nov. 30, 2015 | |
Payables and Accruals [Abstract] | |
Schedule of Accrued Liabilities [Table Text Block] | November 30, 2015 November 30, 2014 $ $ Professional fees 163,552 349,957 Other 290,738 325,530 454,290 675,487 |
Note 7 - Due to Related Parti29
Note 7 - Due to Related Parties (Tables) | 12 Months Ended |
Nov. 30, 2015 | |
Related Party Transactions [Abstract] | |
Schedule of Related Party Transactions [Table Text Block] | November 30, 2015 November 30, 2014 $ $ Convertible debenture payable to two directors and officers of the Company, unsecured, 12% annual interest rate, payable monthly 1,518,429 1,377,302 |
Note 9 - Lease Obligations (Tab
Note 9 - Lease Obligations (Tables) | 12 Months Ended |
Nov. 30, 2015 | |
Leases, Capital [Abstract] | |
Schedule of Future Minimum Lease Payments [Table Text Block] | Year ending November 30, Capital Lease Operating Lease $ $ 2016 23,366 152,072 2017 16,322 179,736 2018 - 179,736 2019 - 179,736 2020 - 179,736 39,688 871,016 Less: amounts representing interest at 14% 3,568 - 36,120 871,016 Less: current portion 20,460 179,736 Balance, long-term portion 15,660 691,280 |
Note 11 - Options (Tables)
Note 11 - Options (Tables) | 12 Months Ended |
Nov. 30, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block] | November 30, 2015 November 30, 2014 November 30, 2013 Volatility 68.6 % 55.0 % 64.0 % Risk-free interest rate 0.580 % 1.45 % 1.00 % Expected life (in years) 5.00 5.60 7.00 Dividend yield - - - The weighted average grant date fair value per options granted $ 1.66 $ 2.10 $ 1.05 |
Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block] | November 30, 2015 November 30, 2014 November 30, 2013 Number of options Weighted average exercise price per share Weighted average grant date fair value Number of options Weighted average exercise price per share Weighted average grant date fair value Number of options Weighted average exercise price per share Weighted average grant date fair value $ $ $ $ $ $ Outstanding, beginning of period, 4,858,208 3.96 2.21 4,455,072 3.97 2.21 4,139,059 4.86 2.76 Granted 355,000 2.52 1.66 479,001 3.86 2.10 391,000 1.81 1.05 Exercised (91,000 ) 2.34 1.86 (48,000 ) 2.45 1.07 (3,500 ) 1.81 0.09 Forfeiture (60,168 ) - - (27,832 ) - - (67,000 ) - - Expired (33 ) 770.13 493.31 (33 ) 709.18 709.18 (4,487 ) 654.48 403.93 Balance at end of period 5,062,007 3.89 2.21 4,858,208 3.96 2.21 4,455,072 3.97 2.21 Options exercisable, end of year 3,812,930 4.01 2.35 3,640,381 4.09 2.40 3,321,830 4.09 2.41 |
Schedule of Share-based Compensation, Shares Authorized under Stock Option Plans, by Exercise Price Range [Table Text Block] | Options outstanding Options exercisable Exercise price Number outstanding Weighted average exercise price per share Weighted average remaining contract life (years) Weighted average grant due fair value Number exercisable Weighted average exercise price per share Weighted average grant date fair value $ $ $ $ Under 2.50 - - - - - - - 2.51 - 5.00 5,022,335 3.39 1.20 1.79 3,773,258 3.33 1.84 5.01 - 10.00 - - - - - - - 10.01 - 100.00 35,703 39.75 1.87 31.19 35,701 39.75 31.19 300.00 - 500.00 3,971 331.15 0.31 223.52 3,971 331.15 223.52 500.01 - 1,000.00 - - - - - - - 5,062,009 3.96 3,812,930 4.01 |
Schedule of Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Table Text Block] | November 30, 2015 November 30, 2014 November 30, 2013 $ $ $ Research and development 152,231 1,270,307 837,206 Selling, general and administrative 265,587 478,300 316,676 417,818 1,748,607 1,153,882 |
Note 12 - Deferred Share Units
Note 12 - Deferred Share Units (Tables) | 12 Months Ended |
Nov. 30, 2015 | |
Deferred Compensation Arrangements Disclosure [Abstract] | |
Schedule of Share-based Compensation, Restricted Stock Units Award Activity [Table Text Block] | November 30, 2015 November 30, 2014 November 30, 2013 $ shares $ shares $ shares Additional paid in capital 29,056 10,993 20,807 5,968 39,547 20,591 Accrued liability 8,051 4,272 3,759 1,338 9,181 2,325 |
Note 14 - Warrants (Tables)
Note 14 - Warrants (Tables) | 12 Months Ended |
Nov. 30, 2015 | |
Warrants [Abstract] | |
Schedule of Stockholders' Equity Note, Warrants or Rights [Table Text Block] | Warrants Outstanding and Exercisable Warrant Exercise price Number outstanding Expiry Shares issuable upon exercise Series A Warrants 2.50 2,835,000 February 1, 2016 1,417,500 March 2013 Warrants 2.10 1,724,300 March 22, 2018 431,075 July 2013 Warrants 2.55 870,000 July 31, 2018 217,500 5,429,300 2,066,075 |
Schedule Of Warrant Transactions [Table Text Block] | Series A Warrants March 2013 Warrants July 2013 Warrants Total Outstanding, December 1, 2014 3,285,000 1,724,300 870,000 5,879,300 Exercised (450,000 ) - - (450,000 ) Outstanding, November 30, 2015 2,835,000 1,724,300 870,000 5,429,300 Series A Warrants Placement Agents Warrants March 2013 Warrants July 2013 Warrants Total Outstanding, December 1, 2013 3,670,000 96,000 1,724,300 870,000 6,360,300 Exercised (385,000 ) (96,000 ) - - (481,000 ) Outstanding, November 30, 2014 3,285,000 - 1,724,300 870,000 5,879,300 |
Note 15 - Income Taxes (Tables)
Note 15 - Income Taxes (Tables) | 12 Months Ended |
Nov. 30, 2015 | |
Income Tax Disclosure [Abstract] | |
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | November 30, 2015 November 30, 2014 November 30, 2013 % % % Statutory income tax rate 26.5 26.5 26.5 $ $ $ Statutory income tax recovery (1,970,643 ) (1,021,934 ) (3,046,180 ) Increase (decrease) in income taxes Non-deductible expenses/ non-taxable income 164,723 417,879 1,446,008 Change in valuation allowance 1,804,406 (995,957 ) 1,248,045 Difference in net income before taxes between Canadian and U.S dollar - 160,316 - Investment tax credit (168,591 ) (9,114 ) (164,308 ) Financing costs booked to equity (23,348 ) (208,271 ) (307,262 ) FCR Election (253,856 ) - - Foreign exchange change - 985,544 746,667 True up of tax returns (15,991 ) 82,939 77,030 Tax loss expired, etc 463,300 588,598 - - - - |
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | November 30, 2015 November 30, 2014 November 30, 2013 $ $ $ Deferred tax assets Non-capital loss carry-forwards 6,019,380 6,528,099 6,831,991 Book and tax basis differences on assets and liabilities 2,854,916 1,006,667 992,378 Other - 47,180 37,136 Ontario harmonization tax credit - 371,160 399,831 Investment tax credit - 2,327,722 2,324,856 Undeducted research and development expenditures 5,394,426 2,183,486 2,180,640 14,268,722 12,464,314 12,766,832 Valuation allowances for deferred tax assets (14,268,722 ) (12,464,314 ) (12,766,832 ) Net deferred tax assets - - - |
Schedule of Operating Losses [Table Text Block] | Canadian income tax losses expiring in the year ended November 30, Federal $ 2028 (82,315 ) 2029 (555,540 ) 2030 (3,373,079 ) 2031 (5,532,739 ) 2032 (5,750,052 ) 2033 (4,562,538 ) 2034 (149,927 ) 2035 (2,634,824 ) (22,641,014 ) United States Federal income tax losses expiring in the year ended November 30, $ 2025 (15,911 ) 2026 (34,523 ) 2032 (5,312 ) (55,746 ) |
Note 17 - Financial Instrumen35
Note 17 - Financial Instruments (Tables) | 12 Months Ended |
Nov. 30, 2015 | |
Disclosure Text Block Supplement [Abstract] | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Table Text Block] | November 30, 2014 Conversion Option Warrant liability Total $ $ $ Opening balance 728,950 5,438,022 6,166,972 Transfer out from level 3 (a) (728,950 ) (5,438,022 ) (6,166,972 ) Closing balance - - - |
Fair Value Measurements, Nonrecurring [Table Text Block] | November 30, 2015 November 30, 2014 Carrying amount Fair value Carrying amount Fair value $ $ $ $ Financial Liabilities Convertible debt (iii) 1,518,429 1,481,663 1,377,302 1,379,808 |
Past Due Financing Receivables [Table Text Block] | November 30, 2015 November 30, 2014 $ $ Total accounts receivable 478,674 1,011,133 Less allowance for doubtful accounts - - Total accounts receivable, net 478,674 1,011,133 Not past due 453,662 982,313 Past due for more than 31 days but no more than 60 days 5,003 5,950 Past due for more than 91 days but no more than 120 days 20,009 22,870 Total accounts receivable, net 478,674 1,011,133 |
Schedule of Foreign Exchange Contracts, Statement of Financial Position [Table Text Block] | November 30, 2015 November 30, 2014 Canadian U.S. Canadian U.S. FX rates used to translate to U.S. 1.3353 1.1440 $ $ $ $ Assets Cash 116,096 86,944 510,459 446,205 116,096 86,944 510,459 446,205 Liabilities Accounts payable 1,372,196 1,027,631 379,014 331,306 Employee cost payable 233,906 175,172 207,297 181,204 Capital lease 48,231 36,120 25,538 22,323 1,654,332 1,238,923 611,849 534,833 Net exposure (1,538,236 ) (1,151,979 ) (101,390 ) (88,628 ) |
Contractual Obligation, Fiscal Year Maturity Schedule [Table Text Block] | November 30, 2015 Less than 3 months 3 to 6 months 6 to 9 months 9 months 1 year Greater than 1 year Total $ $ $ $ $ $ Third parties Accounts payable 3,027,974 - - - - 3,027,974 Accrued liabilities 454,290 - - - - 454,290 Capital lease (note 9) 4,910 5,045 5,182 5,323 15,660 36,120 Related parties Employee costs payable (Note 8) 175,172 - - - - 175,172 Convertible debenture (Note 7) 1,515,770 - - - - 1,515,770 5,178,116 5,045 5,182 5,323 15,660 5,209,326 |
Note 18 - Segmented Informati36
Note 18 - Segmented Information (Tables) | 12 Months Ended |
Nov. 30, 2015 | |
Segment Reporting [Abstract] | |
Schedule of Revenue from External Customers and Long-Lived Assets, by Geographical Areas [Table Text Block] | November 30, 2015 November 30, 2014 November 30, 2013 $ $ $ Revenue United States 4,093,781 8,769,693 1,527,474 4,093,781 8,769,693 1,527,474 Total assets Canada 5,224,299 7,875,035 4,379,501 Total property and equipment Canada 1,759,438 1,618,897 1,231,309 |
Note 1 - Nature of Operations (
Note 1 - Nature of Operations (Details) - USD ($) | 12 Months Ended | ||
Nov. 30, 2015 | Nov. 30, 2014 | Nov. 30, 2013 | |
Disclosure Text Block [Abstract] | |||
Net Income (Loss) Attributable to Parent | $ (7,436,388) | $ (3,856,353) | $ (11,495,017) |
Retained Earnings (Accumulated Deficit) | $ (52,872,442) | $ (45,436,054) |
Note 3 - Significant Accounti38
Note 3 - Significant Accounting Policies (Details) - USD ($) | 12 Months Ended | |||
Nov. 30, 2015 | Nov. 30, 2014 | Nov. 30, 2013 | Jan. 10, 2013 | |
Note 3 - Significant Accounting Policies (Details) [Line Items] | ||||
Revenue Recognition, Milestone Method, Revenue Recognized | $ 354,153 | $ 43,209 | ||
Deferred Revenue, Additions | $ 150,000 | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount (in Shares) | 7,128,082 | 7,149,283 | 7,034,647 | |
Unsecured Convertible Debentures [Member] | ||||
Note 3 - Significant Accounting Policies (Details) [Line Items] | ||||
Debt Instrument, Face Amount | $ 1,500,000 |
Note 3 - Significant Accounti39
Note 3 - Significant Accounting Policies (Details) - Depreciation Rates | 12 Months Ended |
Nov. 30, 2015 | |
Computer Equipment [Member] | Declining Balance [Member] | |
Note 3 - Significant Accounting Policies (Details) - Depreciation Rates [Line Items] | |
Declining Balance Depreciation Rate | 30.00% |
Computer Software, Intangible Asset [Member] | Declining Balance [Member] | |
Note 3 - Significant Accounting Policies (Details) - Depreciation Rates [Line Items] | |
Declining Balance Depreciation Rate | 50.00% |
Furniture and Fixtures [Member] | Declining Balance [Member] | |
Note 3 - Significant Accounting Policies (Details) - Depreciation Rates [Line Items] | |
Declining Balance Depreciation Rate | 20.00% |
Laboratory Equipment [Member] | Declining Balance [Member] | |
Note 3 - Significant Accounting Policies (Details) - Depreciation Rates [Line Items] | |
Declining Balance Depreciation Rate | 20.00% |
Leasehold Improvements [Member] | Straight Line [Member] | |
Note 3 - Significant Accounting Policies (Details) - Depreciation Rates [Line Items] | |
Leasehold improvements | Over term of lease |
Note 5 - Property and Equipme40
Note 5 - Property and Equipment (Details) - USD ($) | 12 Months Ended | ||
Nov. 30, 2015 | Nov. 30, 2014 | Nov. 30, 2013 | |
Property, Plant and Equipment [Abstract] | |||
Depreciation | $ 377,849 | $ 381,385 | $ 396,814 |
Note 5 - Property and Equipme41
Note 5 - Property and Equipment (Details) - Property and Equipment - USD ($) | Nov. 30, 2015 | Nov. 30, 2014 |
Property, Plant and Equipment [Line Items] | ||
Cost | $ 5,526,159 | $ 5,007,769 |
Accumulated amortization | 3,766,721 | 3,388,872 |
Net book value | 1,759,438 | 1,618,897 |
Computer Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Cost | 293,870 | 247,335 |
Accumulated amortization | 214,525 | 196,237 |
Net book value | 79,345 | 51,098 |
Computer Software [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Cost | 124,151 | 119,151 |
Accumulated amortization | 110,860 | 99,027 |
Net book value | 13,291 | 20,124 |
Furniture and Fixtures [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Cost | 129,860 | 126,690 |
Accumulated amortization | 104,089 | 98,406 |
Net book value | 25,771 | 28,284 |
Laboratory Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Cost | 3,483,398 | 3,019,713 |
Accumulated amortization | 1,968,088 | 1,658,299 |
Net book value | 1,515,310 | 1,361,414 |
Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Cost | 1,142,122 | 1,142,122 |
Accumulated amortization | 1,142,122 | 1,142,122 |
Laboratory Equipment Under Capital Lease [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Cost | 276,300 | 276,300 |
Accumulated amortization | 155,203 | 124,928 |
Net book value | 121,097 | 151,372 |
Computer Equipment Under Capital Lease [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Cost | 76,458 | 76,458 |
Accumulated amortization | 71,834 | 69,853 |
Net book value | $ 4,624 | $ 6,605 |
Note 6 - Accrued Liabilities (D
Note 6 - Accrued Liabilities (Details) - Accrued Liabilities - USD ($) | Nov. 30, 2015 | Nov. 30, 2014 |
Accrued Liabilities [Abstract] | ||
Professional fees | $ 163,552 | $ 349,957 |
Other | 290,738 | 325,530 |
$ 454,290 | $ 675,487 |
Note 7 - Due to Related Parti43
Note 7 - Due to Related Parties (Details) | Jan. 10, 2013USD ($)$ / shares | Dec. 31, 2013USD ($) | Nov. 30, 2014USD ($) | Nov. 30, 2015USD ($) | Nov. 30, 2014USD ($) | Nov. 30, 2013USD ($) |
Note 7 - Due to Related Parties (Details) [Line Items] | ||||||
Debt Instrument, Interest Rate, Stated Percentage | 12.00% | 12.00% | ||||
Proceeds from Convertible Debt | $ 1,500,000 | |||||
Additional paid in capital | $ 464,804 | $ 510,216 | ||||
Gains (Losses) on Extinguishment of Debt | (114,023) | |||||
Accretion Expense | 27,103 | 127,261 | 96,556 | |||
Reclass of Conversion Option [Member] | ||||||
Note 7 - Due to Related Parties (Details) [Line Items] | ||||||
Additional paid in capital | $ 728,950 | 728,950 | ||||
Principal Shareholders, Directors, and Executive Officers [Member] | ||||||
Note 7 - Due to Related Parties (Details) [Line Items] | ||||||
Debt Instrument, Interest Rate, Stated Percentage | 12.00% | |||||
Debt Instrument, Convertible, Conversion Price (in Dollars per share) | $ / shares | $ 3 | |||||
Decrease In Convertible Debt | $ 126,414 | |||||
Gains (Losses) on Extinguishment of Debt | (114,023) | |||||
Principal Shareholders, Directors, and Executive Officers [Member] | Common Stock [Member] | ||||||
Note 7 - Due to Related Parties (Details) [Line Items] | ||||||
Debt Instrument, Convertible, Number of Equity Instruments | 500,000 | |||||
Principal Shareholders, Directors, and Executive Officers [Member] | Interest Expense [Member] | ||||||
Note 7 - Due to Related Parties (Details) [Line Items] | ||||||
Accretion Expense | 27,103 | 127,261 | 96,556 | |||
Interest Expense, Debt | $ 179,878 | $ 179,877 | $ 159,671 | |||
Principal Shareholders, Directors, and Executive Officers [Member] | Reclass of Conversion Option [Member] | ||||||
Note 7 - Due to Related Parties (Details) [Line Items] | ||||||
Additional paid in capital | $ 728,950 | |||||
Majority Shareholder [Member] | ||||||
Note 7 - Due to Related Parties (Details) [Line Items] | ||||||
Proceeds from Convertible Debt | $ 1,500,000 |
Note 7 - Due to Related Parti44
Note 7 - Due to Related Parties (Details) - Amounts Due to Related Parties - USD ($) | Nov. 30, 2015 | Nov. 30, 2014 |
Amounts Due to Related Parties [Abstract] | ||
Convertible debenture payable to two directors and officers of the Company, unsecured, 12% annual interest rate, payable monthly | $ 1,518,429 | $ 1,377,302 |
Note 7 - Due to Related Parti45
Note 7 - Due to Related Parties (Details) - Amounts Due to Related Parties (Parentheticals) | Nov. 30, 2014 |
Amounts Due to Related Parties [Abstract] | |
Annual interest rate | 12.00% |
Note 8 - Employee Costs Payab46
Note 8 - Employee Costs Payable (Details) - USD ($) | Nov. 30, 2015 | Nov. 30, 2014 |
Note 8 - Employee Costs Payable (Details) [Line Items] | ||
Employee-related Liabilities, Current | $ 175,172 | $ 181,204 |
Certain Employees [Member] | ||
Note 8 - Employee Costs Payable (Details) [Line Items] | ||
Employee-related Liabilities, Current | $ 175,172 | $ 181,204 |
Note 9 - Lease Obligations (Det
Note 9 - Lease Obligations (Details) - Subsequent Event [Member] | Dec. 01, 2015 |
Note 9 - Lease Obligations (Details) [Line Items] | |
Lessee Leasing Arrangements, Operating Leases, Term of Contract | 5 years |
Lessee Leasing Arrangements, Operating Leases, Renewal Term | 5 years |
Note 9 - Lease Obligations (D48
Note 9 - Lease Obligations (Details) - Minimum Lease Payments - USD ($) | Nov. 30, 2015 | Nov. 30, 2014 |
Minimum Lease Payments [Abstract] | ||
2,016 | $ 23,366 | |
2,016 | 152,072 | |
2,017 | 16,322 | |
2,017 | 179,736 | |
2,018 | 179,736 | |
2,019 | 179,736 | |
2,020 | 179,736 | |
39,688 | ||
871,016 | ||
Less: amounts representing interest at 14% | 3,568 | |
36,120 | ||
Less: current portion | 20,460 | $ 21,449 |
Less: current portion | 179,736 | |
Balance, long-term portion | 15,660 | $ 42,160 |
Balance, long-term portion | $ 691,280 |
Note 9 - Lease Obligations (D49
Note 9 - Lease Obligations (Details) - Minimum Lease Payments (Parentheticals) | Nov. 30, 2015 |
Minimum Lease Payments [Abstract] | |
Interest rate | 14.00% |
Note 10 - Capital Stock (Detail
Note 10 - Capital Stock (Details) - USD ($) | 1 Months Ended | 12 Months Ended | ||||||
Nov. 30, 2013 | Jul. 31, 2013 | Mar. 31, 2013 | Nov. 30, 2015 | Nov. 30, 2014 | Nov. 30, 2013 | May. 31, 2014 | Nov. 30, 2012 | |
Note 10 - Capital Stock (Details) [Line Items] | ||||||||
Common Stock, Shares, Issued (in Shares) | 21,430,611 | 24,244,050 | 23,456,611 | 21,430,611 | ||||
Common Stock, Shares, Outstanding (in Shares) | 21,430,611 | 24,244,050 | 23,456,611 | 21,430,611 | ||||
Preferred Stock, Shares Outstanding (in Shares) | 0 | 0 | 0 | 0 | ||||
Preferred Stock, Shares Issued (in Shares) | 0 | 0 | 0 | 0 | ||||
Proceeds from Issuance or Sale of Equity | $ 3,075,000 | $ 3,121,800 | $ 6,196,800 | |||||
Sale of Stock, Price Per Share (in Dollars per share) | $ 2.05 | $ 1.72 | ||||||
Stock Issued During Period, Shares, New Issues (in Shares) | 1,500,000 | 1,815,000 | ||||||
Class of Warrant or Right, Number of Securities Called by Warrants or Rights (in Shares) | 375,000 | 2,066,075 | ||||||
Warrants Exercisable Term | 5 years | 5 years | ||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights (in Dollars per share) | $ 2.55 | $ 2.10 | ||||||
Proceeds From Issuance Or Sale Of Equity Net Of Issuance Costs | $ 2,500,000 | $ 2,700,000 | ||||||
Derivative Liability, Fair Value, Gross Liability | 328,350 | 407,558 | ||||||
Payments of Stock Issuance Costs | 467,989 | 389,289 | $ 259,276 | $ 719,837 | $ 836,099 | |||
Payments of Warrant Issuance Costs | $ 57,525 | $ 57,531 | ||||||
Common Stock, Capital Shares Reserved for Future Issuance (in Shares) | 5,305,484 | 5,305,484 | ||||||
Registration Payment Arrangement, Maximum Potential Consideration | $ 16,800,000 | $ 16,800,000 | ||||||
Commission Expense Or Discount From Sale Of Stock Proceeds | 2.75% | |||||||
Deferred Offering Costs | 543,745 | 271,381 | $ 271,381 | |||||
Adjustments to Additional Paid in Capital, Stock Issued, Issuance Costs | 78,166 | 811,887 | 857,278 | |||||
Stock Issued During Period, Value, New Issues | 5,460,892 | |||||||
Facility [Member] | ||||||||
Note 10 - Capital Stock (Details) [Line Items] | ||||||||
Deferred Offering Costs | $ 419,777 | 311,640 | 392,110 | 419,777 | ||||
Adjustments to Additional Paid in Capital, Stock Issued, Issuance Costs | $ 78,166 | $ 392,110 | $ 419,777 | |||||
Common Stock [Member] | ||||||||
Note 10 - Capital Stock (Details) [Line Items] | ||||||||
Class of Warrant or Right, Number of Securities Called by Warrants or Rights (in Shares) | 453,750 | |||||||
Common Stock [Member] | Roth Capital Partners, LLC [Member] | ||||||||
Note 10 - Capital Stock (Details) [Line Items] | ||||||||
Stock Issued During Period, Shares, New Issues (in Shares) | 471,439 | 1,689,500 | ||||||
Proceeds from Issuance of Common Stock | $ 1,254,178 | $ 6,390,670 | ||||||
Stock Issued During Period, Value, New Issues | 1,290,168 | $ 6,571,673 | ||||||
Stock Issued in the Future, Value, New Issues, Maximum | $ 8,938,160 | |||||||
Odidi Holdco [Member] | ||||||||
Note 10 - Capital Stock (Details) [Line Items] | ||||||||
Common Stock, Shares, Issued (in Shares) | 5,997,751 | 5,781,312 | ||||||
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners | 28.00% | 24.00% | 26.00% | 28.00% |
Note 11 - Options (Details)
Note 11 - Options (Details) - USD ($) | Mar. 27, 2014 | Aug. 31, 2004 | Nov. 30, 2015 | Nov. 30, 2014 | Nov. 30, 2013 |
Note 11 - Options (Details) [Line Items] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Number | 3,812,930 | 3,640,381 | 3,321,830 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 355,000 | 479,001 | 391,000 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested, Number of Shares | 276,394 | ||||
Allocated Share-based Compensation Expense (in Dollars) | $ 417,818 | $ 1,748,607 | $ 1,153,882 | ||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Stock Options (in Dollars) | 2,482,528 | 2,482,528 | |||
Proceeds from Stock Options Exercised (in Dollars) | $ 167,962 | $ 116,984 | $ 5,965 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | 91,000 | 48,000 | 3,500 | ||
Stock Option Sharebased Compensation Forfeiture Rate | 4.00% | 3.00% | |||
Management, Directors and Employees [Member] | |||||
Note 11 - Options (Details) [Line Items] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 355,000 | 479,001 | 391,000 | ||
Employee Stock Option Plan [Member] | |||||
Note 11 - Options (Details) [Line Items] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Percentage of Outstanding Stock Maximum | 10.00% | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 2,424,405 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Number | 2,298,067 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 126,338 | ||||
Research and Development Expense [Member] | |||||
Note 11 - Options (Details) [Line Items] | |||||
Allocated Share-based Compensation Expense (in Dollars) | $ 152,231 | $ 1,270,307 | $ 837,206 | ||
Employee Stock Option [Member] | Employee Stock Option Plan [Member] | |||||
Note 11 - Options (Details) [Line Items] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 3 years | ||||
Performance Shares [Member] | |||||
Note 11 - Options (Details) [Line Items] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 91,000 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested, Number of Shares | 1,658,364 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Extension Period | 2 years | ||||
Allocated Share-based Compensation Expense (in Dollars) | 1,066,991 | ||||
Proceeds from Stock Options Exercised (in Dollars) | $ 167,962 | $ 116,984 | $ 5,965 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | 48,000 | 3,500 | |||
Performance Shares [Member] | Two Executives [Member] | |||||
Note 11 - Options (Details) [Line Items] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 2,763,940 | ||||
Performance Shares [Member] | Research and Development Expense [Member] | |||||
Note 11 - Options (Details) [Line Items] | |||||
Allocated Share-based Compensation Expense (in Dollars) | $ 442,800 | ||||
Maximum [Member] | Employee Stock Option [Member] | Employee Stock Option Plan [Member] | |||||
Note 11 - Options (Details) [Line Items] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period | 10 years |
Note 11 - Options (Details) - F
Note 11 - Options (Details) - Fair Value Assumptions of Option Awards - $ / shares | 12 Months Ended | ||
Nov. 30, 2015 | Nov. 30, 2014 | Nov. 30, 2013 | |
Note 11 - Options (Details) - Fair Value Assumptions of Option Awards [Line Items] | |||
Volatility | 64.00% | ||
Risk-free interest rate | 1.00% | ||
Expected life (in years) | 7 years | ||
Dividend yield | 0.00% | ||
The weighted average grant date fair value per options granted (in Dollars per share) | $ 1.66 | $ 2.10 | $ 1.05 |
Broker Options [Member] | |||
Note 11 - Options (Details) - Fair Value Assumptions of Option Awards [Line Items] | |||
Volatility | 68.60% | 55.00% | |
Risk-free interest rate | 0.58% | 1.45% | |
Expected life (in years) | 5 years | 5 years 219 days | |
Dividend yield | 0.00% | 0.00% | |
The weighted average grant date fair value per options granted (in Dollars per share) | $ 1.66 | $ 2.10 |
Note 11 - Options (Details) - S
Note 11 - Options (Details) - Stock Option Transactions - $ / shares | 12 Months Ended | ||
Nov. 30, 2015 | Nov. 30, 2014 | Nov. 30, 2013 | |
Stock Option Transactions [Abstract] | |||
Outstanding, beginning of period, (in Shares) | 4,858,208 | 4,455,072 | 4,139,059 |
Outstanding, beginning of period, | $ 3.96 | $ 3.97 | $ 4.86 |
Outstanding, beginning of period, | $ 2.21 | $ 2.21 | $ 2.76 |
Granted (in Shares) | 355,000 | 479,001 | 391,000 |
Granted | $ 2.52 | $ 3.86 | $ 1.81 |
Granted | $ 1.66 | $ 2.10 | $ 1.05 |
Exercised (in Shares) | (91,000) | (48,000) | (3,500) |
Exercised | $ 2.34 | $ 2.45 | $ 1.81 |
Exercised | $ 1.86 | $ 1.07 | $ 0.09 |
Forfeiture (in Shares) | (60,168) | (27,832) | (67,000) |
Expired (in Shares) | (33) | (33) | (4,487) |
Expired | $ 770.13 | $ 709.18 | $ 654.48 |
Expired | $ 493.31 | $ 709.18 | $ 403.93 |
Balance at end of period (in Shares) | 5,062,007 | 4,858,208 | 4,455,072 |
Balance at end of period | $ 3.89 | $ 3.96 | $ 3.97 |
Balance at end of period | $ 2.21 | $ 2.21 | $ 2.21 |
Options exercisable, end of year (in Shares) | 3,812,930 | 3,640,381 | 3,321,830 |
Options exercisable, end of year | $ 4.01 | $ 4.09 | $ 4.09 |
Options exercisable, end of year | $ 2.35 | $ 2.40 | $ 2.41 |
Note 11 - Options (Details) - E
Note 11 - Options (Details) - Exercise Prices of Stock Options Oustanding - $ / shares | 12 Months Ended | ||
Nov. 30, 2015 | Nov. 30, 2014 | Nov. 30, 2013 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |||
Number outstanding (in Shares) | 5,062,009 | ||
Weighted average exercise price per share | $ 3.96 | ||
Number exercisable (in Shares) | 3,812,930 | 3,640,381 | 3,321,830 |
Weighted average exercise price per share | $ 4.01 | $ 4.09 | $ 4.09 |
Weighted average grant date fair value | 2.35 | $ 2.40 | $ 2.41 |
Range 1 [Member] | |||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |||
Exercise price range, upper limit | 2.50 | ||
Range 2 [Member] | |||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |||
Exercise price range, lower limit | 2.51 | ||
Exercise price range, upper limit | $ 5 | ||
Number outstanding (in Shares) | 5,022,335 | ||
Weighted average exercise price per share | $ 3.39 | ||
Weighted average remaining contract life (years) | 1 year 73 days | ||
Weighted average grant date fair value | $ 1.79 | ||
Number exercisable (in Shares) | 3,773,258 | ||
Weighted average exercise price per share | $ 3.33 | ||
Weighted average grant date fair value | 1.84 | ||
Range 3 [Member] | |||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |||
Exercise price range, lower limit | 5.01 | ||
Exercise price range, upper limit | 10 | ||
Range 4 [Member] | |||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |||
Exercise price range, lower limit | 10.01 | ||
Exercise price range, upper limit | $ 100 | ||
Number outstanding (in Shares) | 35,703 | ||
Weighted average exercise price per share | $ 39.75 | ||
Weighted average remaining contract life (years) | 1 year 317 days | ||
Weighted average grant date fair value | $ 31.19 | ||
Number exercisable (in Shares) | 35,701 | ||
Weighted average exercise price per share | $ 39.75 | ||
Weighted average grant date fair value | 31.19 | ||
Range 5 [Member] | |||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |||
Exercise price range, lower limit | 300 | ||
Exercise price range, upper limit | $ 500 | ||
Number outstanding (in Shares) | 3,971 | ||
Weighted average exercise price per share | $ 331.15 | ||
Weighted average remaining contract life (years) | 113 days | ||
Weighted average grant date fair value | $ 223.52 | ||
Number exercisable (in Shares) | 3,971 | ||
Weighted average exercise price per share | $ 331.15 | ||
Weighted average grant date fair value | 223.52 | ||
Range 6 [Member] | |||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |||
Exercise price range, lower limit | 500.01 | ||
Exercise price range, upper limit | $ 1,000 |
Note 11 - Options (Details) - C
Note 11 - Options (Details) - Components of Stock-Based Compensation Expense - USD ($) | 12 Months Ended | ||
Nov. 30, 2015 | Nov. 30, 2014 | Nov. 30, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Stock based compensation expense components | $ 417,818 | $ 1,748,607 | $ 1,153,882 |
Research and Development Expense [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Stock based compensation expense components | 152,231 | 1,270,307 | 837,206 |
Selling, General and Administrative Expenses [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Stock based compensation expense components | $ 265,587 | $ 478,300 | $ 316,676 |
Note 12 - Deferred Share Unit56
Note 12 - Deferred Share Units (Details) - USD ($) | 12 Months Ended | |||
Nov. 30, 2015 | Nov. 30, 2014 | Nov. 30, 2013 | May. 28, 2010 | |
Note 12 - Deferred Share Units (Details) [Line Items] | ||||
Deferred Share Units to Non Management Board Members (in Dollars) | $ 29,056 | $ 20,807 | $ 39,547 | |
Deferred Share Units [Member] | ||||
Note 12 - Deferred Share Units (Details) [Line Items] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 110,000 | |||
Deferred Share Units to Non Management Board Members (in Dollars) | $ 60,002 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 49,998 |
Note 12 - Deferred Share Unit57
Note 12 - Deferred Share Units (Details) - Deferred Share Units - USD ($) | 12 Months Ended | ||
Nov. 30, 2015 | Nov. 30, 2014 | Nov. 30, 2013 | |
Note 12 - Deferred Share Units (Details) - Deferred Share Units [Line Items] | |||
Additional paid in capital | $ 464,804 | $ 510,216 | |
Deferred Share Units [Member] | |||
Note 12 - Deferred Share Units (Details) - Deferred Share Units [Line Items] | |||
Additional paid in capital | $ 29,056 | $ 20,807 | $ 39,547 |
Additional paid in capital | 10,993 | 5,968 | 20,591 |
Accrued liability | $ 8,051 | $ 3,759 | $ 9,181 |
Accrued liability | 4,272 | 1,338 | 2,325 |
Note 13 - Restricted Share Un58
Note 13 - Restricted Share Units (Details) - Restricted Stock Units (RSUs) [Member] - shares | 12 Months Ended | |
Nov. 30, 2015 | May. 28, 2010 | |
Note 13 - Restricted Share Units (Details) [Line Items] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 330,000 | |
Share-based Compensation Arrangement by Share-based Payment Award, Shares Issued in Period | 0 |
Note 14 - Warrants (Details)
Note 14 - Warrants (Details) - USD ($) | 1 Months Ended | 12 Months Ended | |||||
Dec. 31, 2013 | Jul. 31, 2013 | Mar. 31, 2013 | Feb. 01, 2011 | Nov. 30, 2015 | Nov. 30, 2014 | Nov. 30, 2013 | |
Note 14 - Warrants (Details) [Line Items] | |||||||
Warrants Exercisable Term | 5 years | 5 years | |||||
Class of Warrant or Right, Exercise Price of Warrants or Rights (in Dollars per share) | $ 2.55 | $ 2.10 | |||||
Proceeds from Issuance or Sale of Equity (in Dollars) | $ 3,075,000 | $ 3,121,800 | $ 6,196,800 | ||||
Stock Issued During Period, Shares, New Issues | 1,500,000 | 1,815,000 | |||||
Sale of Stock, Price Per Share (in Dollars per share) | $ 2.05 | $ 1.72 | |||||
Class of Warrant or Right, Number of Securities Called by Each Warrant or Right | 0.25 | ||||||
Warrants and Rights Outstanding (in Dollars) | $ 328,350 | $ 407,558 | |||||
Fair Value Assumptions, Expected Volatility Rate | 62.40% | 63.00% | |||||
Fair Value Assumptions, Risk Free Interest Rate | 0.58% | 0.40% | |||||
Fair Value Assumptions, Expected Term | 5 years | 5 years | 4 years | ||||
Additional paid in capital (in Dollars) | $ 464,804 | $ 510,216 | |||||
Class of Warrant or Right, Outstanding | 5,429,300 | 5,879,300 | 6,360,300 | ||||
Issuance of Shares on Exercise of Warrants (in Dollars) | $ 562,500 | $ 781,220 | $ 980,382 | ||||
Proceeds from Warrant Exercises (in Dollars) | 562,500 | 781,220 | |||||
Special Voting Shares [Member] | |||||||
Note 14 - Warrants (Details) [Line Items] | |||||||
Stock Issued During Period, Shares, New Issues | 3,315,000 | ||||||
Issuance of Shares on Exercise of Warrants (in Dollars) | $ 1,027,304 | 1,291,436 | $ 980,382 | ||||
Reclass of Warrant Liabilities [Member] | |||||||
Note 14 - Warrants (Details) [Line Items] | |||||||
Additional paid in capital (in Dollars) | $ 5,438,022 | $ 5,438,022 | |||||
Series A Common Share Purchase Warrant [Member] | |||||||
Note 14 - Warrants (Details) [Line Items] | |||||||
Warrants Issued | 4,800,000 | ||||||
Warrants Exercisable Term | 5 years | ||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights (in Dollars per share) | $ 2.50 | $ 2.50 | |||||
Class of Warrant or Right, Outstanding | 2,835,000 | ||||||
Series B Common Share Purchase Warrant [Member] | |||||||
Note 14 - Warrants (Details) [Line Items] | |||||||
Warrants Issued | 4,800,000 | ||||||
Warrants Exercisable Term | 2 years | ||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights (in Dollars per share) | $ 2.50 | ||||||
Private Placement Offering [Member] | |||||||
Note 14 - Warrants (Details) [Line Items] | |||||||
Warrants Issued | 96,000 | ||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights (in Dollars per share) | $ 3.125 | ||||||
July 2013 Warrants [Member] | |||||||
Note 14 - Warrants (Details) [Line Items] | |||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights (in Dollars per share) | $ 2.55 | ||||||
Class of Warrant or Right, Number of Securities Called by Each Warrant or Right | 0.25 | ||||||
Class of Warrant or Right, Outstanding | 870,000 | 870,000 | 870,000 | ||||
Cashless Exercise [Member] | |||||||
Note 14 - Warrants (Details) [Line Items] | |||||||
Warrants Exercised | 450,000 | ||||||
Stock Issued During Period, Shares, Conversion of Convertible Securities | 288,500 | ||||||
Cash Exercise of Warrants [Member] | |||||||
Note 14 - Warrants (Details) [Line Items] | |||||||
Warrants Exercised | 481,000 | ||||||
Stock Issued During Period, Shares, Conversion of Convertible Securities | 225,000 |
Note 14 - Warrants (Details) -
Note 14 - Warrants (Details) - Warrants Outstanding and Exercisable - $ / shares | 12 Months Ended | |||||
Nov. 30, 2015 | Nov. 30, 2014 | Nov. 30, 2013 | Jul. 31, 2013 | Mar. 31, 2013 | Feb. 01, 2011 | |
Class of Warrant or Right [Line Items] | ||||||
Exercise price (in Dollars per share) | $ 2.55 | $ 2.10 | ||||
Number Outstanding | 5,429,300 | 5,879,300 | 6,360,300 | |||
Shares Issuable Upon Exercise | 2,066,075 | 375,000 | ||||
Series A Common Share Purchase Warrant [Member] | ||||||
Class of Warrant or Right [Line Items] | ||||||
Exercise price (in Dollars per share) | $ 2.50 | $ 2.50 | ||||
Number Outstanding | 2,835,000 | |||||
Expiry | Feb. 1, 2016 | |||||
Shares Issuable Upon Exercise | 1,417,500 | |||||
March 2013 Warrants [Member] | ||||||
Class of Warrant or Right [Line Items] | ||||||
Exercise price (in Dollars per share) | $ 2.10 | |||||
Number Outstanding | 1,724,300 | 1,724,300 | 1,724,300 | |||
Expiry | Mar. 22, 2018 | |||||
Shares Issuable Upon Exercise | 431,075 | |||||
July 2013 Warrants [Member] | ||||||
Class of Warrant or Right [Line Items] | ||||||
Exercise price (in Dollars per share) | $ 2.55 | |||||
Number Outstanding | 870,000 | 870,000 | 870,000 | |||
Expiry | Jul. 31, 2018 | |||||
Shares Issuable Upon Exercise | 217,500 |
Note 14 - Warrants (Details) 61
Note 14 - Warrants (Details) - Warrant Transactions - shares | 12 Months Ended | |
Nov. 30, 2015 | Nov. 30, 2014 | |
Note 14 - Warrants (Details) - Warrant Transactions [Line Items] | ||
Outstanding, December 1, 2014 | 5,879,300 | 6,360,300 |
Exercised | (450,000) | (481,000) |
Outstanding, November 30, 2015 | 5,429,300 | 5,879,300 |
Series A Warrants [Member] | ||
Note 14 - Warrants (Details) - Warrant Transactions [Line Items] | ||
Outstanding, December 1, 2014 | 3,285,000 | 3,670,000 |
Exercised | (450,000) | (385,000) |
Outstanding, November 30, 2015 | 2,835,000 | 3,285,000 |
March 2013 Warrants [Member] | ||
Note 14 - Warrants (Details) - Warrant Transactions [Line Items] | ||
Outstanding, December 1, 2014 | 1,724,300 | 1,724,300 |
Outstanding, November 30, 2015 | 1,724,300 | 1,724,300 |
July 2013 Warrants [Member] | ||
Note 14 - Warrants (Details) - Warrant Transactions [Line Items] | ||
Outstanding, December 1, 2014 | 870,000 | 870,000 |
Outstanding, November 30, 2015 | 870,000 | 870,000 |
Placement Agent Warrants [Member] | ||
Note 14 - Warrants (Details) - Warrant Transactions [Line Items] | ||
Outstanding, December 1, 2014 | 96,000 | |
Exercised | (96,000) |
Note 15 - Income Taxes (Details
Note 15 - Income Taxes (Details) - USD ($) | 12 Months Ended | ||
Nov. 30, 2015 | Nov. 30, 2014 | Nov. 30, 2013 | |
Note 15 - Income Taxes (Details) [Line Items] | |||
Tax Credit Carryforward, Amount | $ 458,021 | $ 324,986 | |
Income Tax Expense (Benefit) | 0 | 0 | $ 0 |
Unrecognized Tax Benefits, Income Tax Penalties Expense | 0 | 0 | 0 |
Unrecognized Tax Benefits, Interest on Income Taxes Accrued | 0 | 0 | |
Unrecognized Tax Benefits | 0 | 0 | $ 0 |
Federal SR & ED Expenditures [Member] | |||
Note 15 - Income Taxes (Details) [Line Items] | |||
Tax Credit Carryforward, Amount | 12,408,000 | 10,215,000 | |
Ontario Harmonization Credits [Member] | |||
Note 15 - Income Taxes (Details) [Line Items] | |||
Tax Credit Carryforward, Amount | 371,000 | ||
Unclaimed ITCs [Member] | |||
Note 15 - Income Taxes (Details) [Line Items] | |||
Tax Credit Carryforward, Amount | $ 2,710,000 | $ 2,328,000 |
Note 15 - Income Taxes (Detai63
Note 15 - Income Taxes (Details) - Income Tax Reconciliation - USD ($) | 12 Months Ended | ||
Nov. 30, 2015 | Nov. 30, 2014 | Nov. 30, 2013 | |
Income Tax Reconciliation [Abstract] | |||
Statutory income tax rate | 26.50% | 26.50% | 26.50% |
Statutory income tax recovery | $ (1,970,643) | $ (1,021,934) | $ (3,046,180) |
Increase (decrease) in income taxes | |||
Non-deductible expenses/ non-taxable income | 164,723 | 417,879 | 1,446,008 |
Change in valuation allowance | 1,804,406 | (995,957) | 1,248,045 |
Difference in net income before taxes between Canadian and U.S dollar | 160,316 | ||
Investment tax credit | (168,591) | (9,114) | (164,308) |
Financing costs booked to equity | (23,348) | (208,271) | (307,262) |
FCR Election | (253,856) | ||
Foreign exchange change | 985,544 | 746,667 | |
True up of tax returns | (15,991) | 82,939 | 77,030 |
Tax loss expired, etc | 463,300 | 588,598 | |
$ 0 | $ 0 | $ 0 |
Note 15 - Income Taxes (Detai64
Note 15 - Income Taxes (Details) - Deferred Tax Assets and Liabilities - USD ($) | Nov. 30, 2015 | Nov. 30, 2014 | Nov. 30, 2013 |
Deferred tax assets | |||
Non-capital loss carry-forwards | $ 6,019,380 | $ 6,528,099 | $ 6,831,991 |
Book and tax basis differences on assets and liabilities | 2,854,916 | 1,006,667 | 992,378 |
Other | 47,180 | 37,136 | |
Ontario harmonization tax credit | 371,160 | 399,831 | |
Investment tax credit | 2,327,722 | 2,324,856 | |
Undeducted research and development expenditures | 5,394,426 | 2,183,486 | 2,180,640 |
14,268,722 | 12,464,314 | 12,766,832 | |
Valuation allowances for deferred tax assets | (14,268,722) | (12,464,314) | (12,766,832) |
Net deferred tax assets | $ 0 | $ 0 | $ 0 |
Note 15 - Income Taxes (Detai65
Note 15 - Income Taxes (Details) - Summary of Operating Losses | Nov. 30, 2015USD ($) |
Internal Revenue Service (IRS) [Member] | |
Note 15 - Income Taxes (Details) - Summary of Operating Losses [Line Items] | |
Income tax losses expiring in the year | $ (55,746) |
Internal Revenue Service (IRS) [Member] | Tax Loss Expiration 2032 [Member] | |
Note 15 - Income Taxes (Details) - Summary of Operating Losses [Line Items] | |
Income tax losses expiring in the year | (5,312) |
Internal Revenue Service (IRS) [Member] | Tax Loss Expiration 2025 [Member] | |
Note 15 - Income Taxes (Details) - Summary of Operating Losses [Line Items] | |
Income tax losses expiring in the year | (15,911) |
Internal Revenue Service (IRS) [Member] | Tax Loss Expiration 2026 [Member] | |
Note 15 - Income Taxes (Details) - Summary of Operating Losses [Line Items] | |
Income tax losses expiring in the year | (34,523) |
Canada [Member] | |
Note 15 - Income Taxes (Details) - Summary of Operating Losses [Line Items] | |
Income tax losses expiring in the year | (22,641,014) |
Canada [Member] | Tax Loss Expiration 2028 [Member] | |
Note 15 - Income Taxes (Details) - Summary of Operating Losses [Line Items] | |
Income tax losses expiring in the year | (82,315) |
Canada [Member] | Tax Loss Expiration 2029 [Member] | |
Note 15 - Income Taxes (Details) - Summary of Operating Losses [Line Items] | |
Income tax losses expiring in the year | (555,540) |
Canada [Member] | Tax Loss Expiration 2030 [Member] | |
Note 15 - Income Taxes (Details) - Summary of Operating Losses [Line Items] | |
Income tax losses expiring in the year | (3,373,079) |
Canada [Member] | Tax Loss Expiration 2031 [Member] | |
Note 15 - Income Taxes (Details) - Summary of Operating Losses [Line Items] | |
Income tax losses expiring in the year | (5,532,739) |
Canada [Member] | Tax Loss Expiration 2032 [Member] | |
Note 15 - Income Taxes (Details) - Summary of Operating Losses [Line Items] | |
Income tax losses expiring in the year | (5,750,052) |
Canada [Member] | Tax Loss Expiration 2033 [Member] | |
Note 15 - Income Taxes (Details) - Summary of Operating Losses [Line Items] | |
Income tax losses expiring in the year | (4,562,538) |
Canada [Member] | Tax Loss Expiration 2034 [Member] | |
Note 15 - Income Taxes (Details) - Summary of Operating Losses [Line Items] | |
Income tax losses expiring in the year | (149,927) |
Canada [Member] | Tax Loss Expiration 2035 [Member] | |
Note 15 - Income Taxes (Details) - Summary of Operating Losses [Line Items] | |
Income tax losses expiring in the year | $ (2,634,824) |
Note 16 - Contingencies (Detail
Note 16 - Contingencies (Details) - Indemnification Agreement [Member] | Nov. 30, 2015CAD |
Note 16 - Contingencies (Details) [Line Items] | |
Guarantor Obligations, Maximum Exposure, Undiscounted | CAD 1,455,000 |
Threshold Amount [Member] | |
Note 16 - Contingencies (Details) [Line Items] | |
Guarantor Obligations, Maximum Exposure, Undiscounted | CAD 50,000 |
Note 17 - Financial Instrumen67
Note 17 - Financial Instruments (Details) CAD in Millions | 1 Months Ended | 12 Months Ended | ||||
Dec. 31, 2013USD ($) | Jul. 31, 2013 | Mar. 31, 2013 | Nov. 30, 2015USD ($) | Nov. 30, 2014USD ($) | Nov. 30, 2014CAD | |
Note 17 - Financial Instruments (Details) [Line Items] | ||||||
Fair Value Assumptions, Expected Term | 5 years | 5 years | 4 years | |||
Additional paid in capital | $ 464,804 | $ 510,216 | ||||
Foreign Exchange Risk Movement In Currency Percentage | 10.00% | 10.00% | ||||
Reclass of Warrant Liabilities [Member] | ||||||
Note 17 - Financial Instruments (Details) [Line Items] | ||||||
Additional paid in capital | $ 5,438,022 | |||||
Base Amount for Exchange Rate [Member] | ||||||
Note 17 - Financial Instruments (Details) [Line Items] | ||||||
Foreign Exchange Risk Threshold Balance (in Dollars) | CAD | CAD 1 | |||||
Foreign Exchange Risk Loss And Other Comprehensive Loss Amount Affected | $ 100,000 | |||||
Reclass of Conversion Option [Member] | ||||||
Note 17 - Financial Instruments (Details) [Line Items] | ||||||
Additional paid in capital | $ 728,950 | $ 728,950 |
Note 17 - Financial Instrumen68
Note 17 - Financial Instruments (Details) - Reconciliation of Level 3 Fair Value Measurements | 12 Months Ended | |
Nov. 30, 2014USD ($) | ||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Opening balance | $ 6,166,972 | |
Closing balance | 0 | |
Transfer out from level 3(a) | (6,166,972) | [1] |
Conversion Option [Member] | ||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Opening balance | 728,950 | |
Closing balance | 0 | |
Transfer out from level 3(a) | (728,950) | [1] |
Warrant Liability [Member] | ||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Opening balance | 5,438,022 | |
Closing balance | 0 | |
Transfer out from level 3(a) | $ (5,438,022) | [1] |
[1] | As discussed in Note 7 and 14, the conversion option value of $728,950 and the warrant value of $5,438,022 at December 1, 2013 were reclassified to additional paid-in capital due to the change in functional currency. |
Note 17 - Financial Instrumen69
Note 17 - Financial Instruments (Details) - Fair Value of Financial Assets and Financial Liabilities Not Measured on a Recurring Basis - USD ($) | Nov. 30, 2015 | Nov. 30, 2014 | |
Financial Liabilities | |||
Convertible debt(iii) | [1] | $ 1,518,429 | $ 1,377,302 |
Convertible debt(iii) | [1] | $ 1,481,663 | $ 1,379,808 |
[1] | The Company calculates the interest rate for the convertible debt and due to related parties based on the Company's estimated cost of raising capital and uses the discounted cash flow model to calculate the fair value of the convertible debt and the amounts due to related parties. |
Note 17 - Financial Instrumen70
Note 17 - Financial Instruments (Details) - Accounts Receivable Aging - USD ($) | Nov. 30, 2015 | Nov. 30, 2014 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total accounts receivable | $ 478,674 | $ 1,011,133 |
Less allowance for doubtful accounts | 0 | 0 |
Total accounts receivable, net | 478,674 | 1,011,133 |
Not past due | 453,662 | 982,313 |
Financing Receivables, 32 to 60 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past due | 5,003 | 5,950 |
Financing Receivables, 92 to 120 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past due | $ 20,009 | $ 22,870 |
Note 17 - Financial Instrumen71
Note 17 - Financial Instruments (Details) - Foreign Exchange Rates | Nov. 30, 2015USD ($) | Nov. 30, 2015CAD | Nov. 30, 2014USD ($) | Nov. 30, 2014CAD |
Note 17 - Financial Instruments (Details) - Foreign Exchange Rates [Line Items] | ||||
FX rates used to translate to U.S. | 1.3353 | 1.3353 | 1.1440 | 1.1440 |
Assets | ||||
Asset reporting currency denominated value | $ 86,944 | CAD 116,096 | $ 446,205 | CAD 510,459 |
Liabilities | ||||
Liability reporting currency denominated value | 1,238,923 | 1,654,332 | 534,833 | 611,849 |
Net exposure | (1,151,979) | (1,538,236) | (88,628) | (101,390) |
Cash [Member] | ||||
Assets | ||||
Asset reporting currency denominated value | 86,944 | 116,096 | 446,205 | 510,459 |
Accounts Payable [Member] | ||||
Liabilities | ||||
Liability reporting currency denominated value | 1,027,631 | 1,372,196 | 331,306 | 379,014 |
Employee Cost Payable [Member] | ||||
Liabilities | ||||
Liability reporting currency denominated value | 175,172 | 233,906 | 181,204 | 207,297 |
Due to Related Party [Member] | ||||
Liabilities | ||||
Liability reporting currency denominated value | $ 36,120 | CAD 48,231 | $ 22,323 | CAD 25,538 |
Note 17 - Financial Instrumen72
Note 17 - Financial Instruments (Details) - Contractual Maturities of the Undiscounted Cash Flows of Financial Liabilities | 12 Months Ended |
Nov. 30, 2015USD ($) | |
Third parties | |
Undiscounted future cash flows | $ 5,209,326 |
Less Than 3 Months [Member] | |
Third parties | |
Undiscounted future cash flows | 5,178,116 |
3 to 6 Months [Member] | |
Third parties | |
Undiscounted future cash flows | 5,045 |
6 to 9 Months [Member] | |
Third parties | |
Undiscounted future cash flows | 5,182 |
9 Months to 1 Year [Member] | |
Third parties | |
Undiscounted future cash flows | 5,323 |
Greater Than 1 Year [Member] | |
Third parties | |
Undiscounted future cash flows | 15,660 |
Accounts Payable [Member] | |
Third parties | |
Undiscounted future cash flows | 3,027,974 |
Accounts Payable [Member] | Less Than 3 Months [Member] | |
Third parties | |
Undiscounted future cash flows | 3,027,974 |
Accrued Liabilities [Member] | |
Third parties | |
Undiscounted future cash flows | 454,290 |
Accrued Liabilities [Member] | Less Than 3 Months [Member] | |
Third parties | |
Undiscounted future cash flows | 454,290 |
Lease Obligations [Member] | |
Third parties | |
Undiscounted future cash flows | 36,120 |
Lease Obligations [Member] | Less Than 3 Months [Member] | |
Third parties | |
Undiscounted future cash flows | 4,910 |
Lease Obligations [Member] | 3 to 6 Months [Member] | |
Third parties | |
Undiscounted future cash flows | 5,045 |
Lease Obligations [Member] | 6 to 9 Months [Member] | |
Third parties | |
Undiscounted future cash flows | 5,182 |
Lease Obligations [Member] | 9 Months to 1 Year [Member] | |
Third parties | |
Undiscounted future cash flows | 5,323 |
Lease Obligations [Member] | Greater Than 1 Year [Member] | |
Third parties | |
Undiscounted future cash flows | 15,660 |
Due to Related Party [Member] | |
Third parties | |
Undiscounted future cash flows | 175,172 |
Due to Related Party [Member] | Less Than 3 Months [Member] | |
Third parties | |
Undiscounted future cash flows | 175,172 |
Unsecured Convertible Debentures [Member] | |
Third parties | |
Undiscounted future cash flows | 1,515,770 |
Unsecured Convertible Debentures [Member] | Less Than 3 Months [Member] | |
Third parties | |
Undiscounted future cash flows | $ 1,515,770 |
Note 18 - Segmented Informati73
Note 18 - Segmented Information (Details) - Information by Geographic Segment - USD ($) | 12 Months Ended | ||
Nov. 30, 2015 | Nov. 30, 2014 | Nov. 30, 2013 | |
Revenue | |||
United States | $ 4,093,781 | $ 8,769,693 | $ 1,527,474 |
4,093,781 | 8,769,693 | 1,527,474 | |
Total assets | |||
Canada | 5,224,299 | 7,875,035 | |
Total property and equipment | |||
Canada | 1,759,438 | 1,618,897 | |
UNITED STATES | |||
Revenue | |||
United States | 4,093,781 | 8,769,693 | 1,527,474 |
CANADA | |||
Total assets | |||
Canada | 5,224,299 | 7,875,035 | 4,379,501 |
Total property and equipment | |||
Canada | $ 1,759,438 | $ 1,618,897 | $ 1,231,309 |