Edesa Biotech (EDSA) 10-Q 12 Aug 20 2020 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Jun. 30, 2020	Aug. 10, 2020
Document And Entity Information
Entity Registrant Name	Edesa Biotech, Inc.
Entity Central Index Key	0001540159
Document Type	10-Q
Document Period End Date	Jun. 30, 2020
Amendment Flag	false
Current Fiscal Year End Date	--09-30
Is Entity's Reporting Status Current?	Yes
Entity Interactive Data Current	Yes
Entity Incorporation, State or Country Code	A1
Entity File Number	001-37619
Entity Filer Category	Non-accelerated Filer
Entity Emerging Growth Company	true
Elected Not To Use the Extended Transition Period	true
Entity Small Business	true
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		9,414,278
Document Fiscal Period Focus	Q3
Document Fiscal Year Focus	2020

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($)	Jun. 30, 2020	Sep. 30, 2019
Current assets:
Cash and cash equivalents	$ 5,640,695	$ 5,030,583
Accounts and other receivable	56,471	217,101
Prepaid expenses and deposits	523,641	397,022
Total current assets	6,220,807	5,644,706
Non-current assets:
Property, plant and equipment, net	20,342	73,058
Intangible asset	2,508,829	0
Operating lease right-of-use assets	172,776	0
Total assets	8,922,754	5,717,764
Current liabilities:
Accounts payable and accrued liabilities	916,369	461,634
Short-term operating lease liabilities	66,709	0
Total current liabilities	983,078	461,634
Non-current liabilities:
Long-term payables	29,320	0
Long-term operating lease liabilities	110,167	0
Total liabilities	1,122,565	461,634
Commitments (Note 7)
Temporary equity:
Convertible preferred shares	2,458,051	0
Shareholders' equity:
Authorized unlimited common and preferred shares without par value issued and outstanding: 8,861,895 common shares (2019 - 7,504,468)	14,784,903	12,005,051
Additional paid-in capital	1,951,683	327,768
Accumulated other comprehensive loss	(294,896)	(342,074)
Accumulated deficit	(11,099,552)	(6,734,615)
Total shareholders' equity	5,342,138	5,256,130
Total liabilities, shareholders' equity and temporary equity	$ 8,922,754	$ 5,717,764

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - $ / shares	9 Months Ended	12 Months Ended
	Jun. 30, 2020	Sep. 30, 2019
Statement of Financial Position [Abstract]
Capital shares, par value	$ 0	$ 0
Capital shares, authorized	Unlimited	Unlimited
Capital shares, issued	8,861,895	7,504,468
Capital shares, outstanding	8,861,895	7,504,468

Consolidated Statements of Oper

Consolidated Statements of Operations and Comprehensive Loss - USD ($)	3 Months Ended		9 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Revenues:
Product sales and services	$ 109,985	$ 500	$ 328,301	$ 500
Expenses:
Cost of sales and services	1,472	0	15,287	0
Research and development	1,143,868	502,927	2,174,680	872,020
General and administrative	733,079	817,927	2,528,702	1,395,353
Total expenses	1,878,419	1,320,854	4,718,669	2,267,373
Loss from operations	(1,768,434)	(1,320,354)	(4,390,368)	(2,266,873)
Other income (loss):
Interest income	3,799	15,565	36,762	47,696
Foreign exchange gain (loss)	(692)	8,610	5,110	29,319
Gain (loss) on disposition of property and equipment	(436)	2,172	(436)	2,172
Total other income (loss)	2,671	26,347	41,436	79,187
Loss before income taxes	(1,765,763)	(1,294,007)	(4,348,932)	(2,187,686)
Income tax expense	0	0	800	0
Net loss	(1,765,763)	(1,294,007)	(4,349,732)	(2,187,686)
Exchange differences on translation	68,972	27,443	47,178	118,456
Net loss and comprehensive loss	$ (1,696,791)	$ (1,266,564)	$ (4,302,554)	$ (2,069,230)
Weighted average number of common shares	8,859,520	4,317,759	8,364,866	3,599,188
Loss per share - basic and diluted	$ (0.20)	$ (0.30)	$ (0.52)	$ (0.61)

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($)	9 Months Ended
	Jun. 30, 2020	Jun. 30, 2019
Cash flows from operating activities:
Net loss	$ (4,349,732)	$ (2,187,686)
Adjustments for:
Depreciation and amortization	28,543	2,511
(Gain) loss on disposition of property and equipment	436	(2,172)
Share-based compensation	511,966	36,300
Change in working capital items:
Accounts and other receivable	156,361	(113,962)
Prepaid expenses and other assets	(134,665)	(259,893)
Accounts payable and accrued liabilities	473,688	(1,376,057)
Net cash used in operating activities	(3,313,403)	(3,900,959)
Cash flows from investing activities:
Cash acquired from reverse acquisition	0	6,389,322
Proceeds on sales of property and equipment	45,840	18,152
Purchase of property and equipment	(825)	(2,267)
Purchase of intangible assets	(29,483)	0
Purchase of short-term investments	(500,000)	0
Maturities of short-term investments	500,000	0
Net cash provided by investing activities	15,532	6,405,207
Cash flows from financing activities:
Proceeds from issuance of common shares and warrants	4,360,500	0
Payments for issuance costs of common shares	(468,699)	0
Payments for issuance costs of convertible preferred shares	(57,154)	0
Proceeds from borrowings	29,660	0
Net cash provided by financing activities	3,864,307	0
Effect of exchange rate changes on cash and cash equivalents	43,676	128,618
Net change in cash and cash equivalents	610,112	2,632,866
Cash and cash equivalents, beginning of period	5,030,583	3,730,230
Cash and cash equivalents, end of period	5,640,695	6,363,096
Supplemental disclosure of non-cash financing activities
Issuance of convertible preferred shares to acquire license	2,500,000	0
Fair value of placement agent warrants	$ 18,051	$ 0

Consolidated Statements of Chan

Consolidated Statements of Changes in Shareholders' Equity - USD ($)	Common Shares	Class A Preferred Shares	Additional Paid-in Capital	Accumulated Other Comprehensive Loss	Accumulated Deficit	Total
Beginning balance, shares at Sep. 30, 2018	3,239,902
Beginning balance, amount at Sep. 30, 2018	$ 1,111,253	$ 5,945,520	$ 219,358	$ (447,733)	$ (3,278,253)	$ 3,550,145
Preferred return on convertible preferred shares		314,779			(314,779)	0
Effect of reverse acquisition, shares	4,264,566
Effect of reverse acquisition, amount	$ 10,893,798	(6,260,299)	61,902			4,695,401
Share-based compensation			36,300			36,300
Net loss and comprehensive loss				118,456	(2,187,686)	(2,069,230)
Ending balance, shares at Jun. 30, 2019	7,504,468
Ending balance, amount at Jun. 30, 2019	$ 12,005,051	$ 0	317,560	(329,277)	(5,780,718)	6,212,616
Beginning balance, shares at Dec. 31, 2018	3,239,902	1,007,143
Beginning balance, amount at Dec. 31, 2018	$ 1,111,253	$ 6,064,013
Preferred return on convertible preferred shares		$ 196,286
Ending balance, shares at Sep. 30, 2019	7,504,468	0
Ending balance, amount at Sep. 30, 2019	$ 12,005,051	$ 0	327,768	(342,074)	(6,734,615)	5,256,130
Beginning balance, shares at Mar. 31, 2019	3,239,902
Beginning balance, amount at Mar. 31, 2019	$ 1,111,253	6,176,993	244,238	(356,720)	(4,403,405)	2,772,359
Preferred return on convertible preferred shares		83,306			(83,306)	0
Effect of reverse acquisition, shares	4,264,566
Effect of reverse acquisition, amount	$ 10,893,798	(6,260,299)	61,902			4,695,401
Share-based compensation			11,420			11,420
Net loss and comprehensive loss				27,443	(1,294,007)	(1,266,564)
Ending balance, shares at Jun. 30, 2019	7,504,468
Ending balance, amount at Jun. 30, 2019	$ 12,005,051	$ 0	317,560	(329,277)	(5,780,718)	6,212,616
Beginning balance, shares at Sep. 30, 2019	7,504,468	0
Beginning balance, amount at Sep. 30, 2019	$ 12,005,051	$ 0	327,768	(342,074)	(6,734,615)	5,256,130
Issuance of common shares upon exercise of warrants, shares	2,736
Issuance of common shares upon exercise of warrants, amount	$ 52,229		(52,229)			0
Issuance of common shares and warrants in equity offering, shares	1,354,691
Issuance of common shares and warrants in equity offering, amount	$ 3,070,358		1,290,142			4,360,500
Issuance costs	(342,735)		(125,964)			(468,699)
Preferred return on convertible preferred shares					(15,205)	(15,205)
Share-based compensation			511,966			511,966
Net loss and comprehensive loss				47,178	(4,349,732)	(4,302,554)
Ending balance, shares at Jun. 30, 2020	8,861,895	0
Ending balance, amount at Jun. 30, 2020	$ 14,784,903	$ 0	1,951,683	(294,896)	(11,099,552)	5,342,138
Beginning balance, shares at Mar. 31, 2020	8,859,159
Beginning balance, amount at Mar. 31, 2020	$ 14,732,674	0	1,880,721	(363,868)	(9,318,584)	6,930,943
Issuance of common shares upon exercise of warrants, shares	2,736
Issuance of common shares upon exercise of warrants, amount	$ 52,229		(52,229)			0
Preferred return on convertible preferred shares					(15,205)	(15,205)
Share-based compensation			123,191			123,191
Net loss and comprehensive loss				68,972	(1,765,763)	(1,696,791)
Ending balance, shares at Jun. 30, 2020	8,861,895	0
Ending balance, amount at Jun. 30, 2020	$ 14,784,903	$ 0	$ 1,951,683	$ (294,896)	$ (11,099,552)	$ 5,342,138

Nature of Operations

Nature of Operations	9 Months Ended
	Jun. 30, 2020
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Nature of Operations	Edesa Biotech, Inc. (the “Company” or “Edesa”) is a biopharmaceutical company focused on acquiring, developing and commercializing clinical-stage drugs for inflammatory and immune-related diseases with clear unmet medical needs. The Company is organized under the laws of British Columbia, Canada and is headquartered in Markham, Ontario, Canada. In June 2019, the Company changed its name from Stellar Biotechnologies, Inc. to Edesa Biotech, Inc. following a reverse acquisition with Edesa Biotech Research, Inc., formerly known as Edesa Biotech Inc., a company organized under the laws of the province of Ontario. At the closing of the transaction, which occurred on June 7, 2019, the Company acquired the entire issued share capital of Edesa Biotech Research, Inc., with Edesa Biotech Research, Inc., becoming a wholly owned subsidiary of the Company. Also, on June 7, 2019, in connection with and following the completion of the reverse acquisition, the Company effected a 1-for-6 reverse split of its common shares. Upon the completion of the reverse acquisition, Edesa Biotech Research, Inc. changed its fiscal year end from December 31 to September 30 to align with the Company’s fiscal year end. The Company’s common shares trade on The Nasdaq Capital Market in the United States under the symbol “EDSA”.

Basis of Presentation

Basis of Presentation	9 Months Ended
	Jun. 30, 2020
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of Presentation	The accompanying unaudited condensed interim consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (U.S. GAAP) for interim financial information and with the instructions to Form 10-Q. They do not include all information and footnotes necessary for a fair presentation of financial position, results of operations and cash flows in conformity with U.S. GAAP for complete financial statements. These condensed interim consolidated financial statements should be read in conjunction with the consolidated financial statements and related notes contained in the Company’s Annual Transition Report on Form 10-KT for the nine-month period ended September 30, 2019, which were filed with the Securities and Exchange Commission (SEC) on December 12, 2019. The accompanying condensed interim consolidated financial statements include the accounts of the Company, its wholly owned subsidiaries, Edesa Biotech Research, Inc., an Ontario corporation, and Stellar Biotechnologies, Inc., a California corporation. All intercompany balances and transactions have been eliminated in consolidation. All adjustments (consisting of normal recurring adjustments and accruals) considered necessary for a fair presentation of the results of operations for the periods presented have been included in the interim periods. Operating results for the three and nine months ended June 30, 2020 are not necessarily indicative of the results that may be expected for other interim periods or the fiscal year ending September 30, 2020. The preparation of the unaudited condensed interim consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the unaudited condensed interim consolidated financial statements and the reported amounts of revenue and expenses during the period. Actual results could differ from those estimates. Functional and reporting currencies The condensed interim consolidated financial statements of the Company are presented in U.S. dollars, unless otherwise stated, which is the Company’s and its wholly owned subsidiary’s, Stellar Biotechnologies, Inc., functional currency. The functional currency of the Company’s wholly owned subsidiary, Edesa Biotech Research, Inc., as determined by management, is Canadian dollars. Adoption of recent accounting pronouncements On October 1, 2019, the Company adopted Accounting Standards Codification (ASC) Topic 842 Leases

Short-term Investments

Short-term Investments	9 Months Ended
	Jun. 30, 2020
Short-term Investments [Abstract]
Short-term Investments	The Company held short-term investments in U.S. Treasury Bills during the nine months ended June 30, 2020. No amounts were outstanding at June 30, 2020 or September 30, 2019. U.S. Treasury Bills were carried at amortized cost which approximates fair value and classified as held-to-maturity investments.

Property and Equipment

Property and Equipment	9 Months Ended
	Jun. 30, 2020
Property, Plant and Equipment [Abstract]
Property and Equipment	Property and equipment, net consisted of the following: June 30, 2020 September 30, 2019 Computer equipment $ 38,194 $ 42,910 Furniture and equipment 5,578 7,932 43,772 50,842 Less: accumulated depreciation (29,000 ) (29,194 ) Depreciable assets, net $ 14,772 $ 21,648 Assets not in service 5,570 51,410 Total property and equipment, net $ 20,342 $ 73,058 Assets not in service represent equipment for sale held on consignment by a third party. Depreciation expense amounted to $7,046 and $3,015 for the nine months ended June 30, 2020 and 2019, respectively, and $1,992 and $2,099 for the three months ended June 30, 2020 and 2019, respectively.

Intangible Asset

Intangible Asset	9 Months Ended
	Jun. 30, 2020
Goodwill and Intangible Assets Disclosure [Abstract]
Intangible Asset	Acquired License In April 2020, the Company entered into a license agreement with a pharmaceutical development company to obtain exclusive world-wide rights to know-how, patents and data relating to certain monoclonal antibodies ("the Constructs"), including sublicensing rights. Unless earlier terminated, the term of the license agreement will remain in effect for 25 years from the date of first commercial sale of licensed products containing the Constructs. Subsequently, the license agreement will automatically renew for five-year periods unless either party terminates the agreement in accordance with its terms. Under the license agreement, the Company is exclusively responsible, at its expense, for the research, development manufacture, marketing, distribution and commercialization of the Constructs and licensed products and to obtain all necessary licenses and rights. The Company is required to use commercially reasonable efforts to develop and commercialize the Constructs in accordance with the terms of a development plan established by the parties. The Company has determined that the license has multiple alternative future uses in research and development projects and sublicensing in other countries or for other disease indications. The value of the acquired license is recorded as an intangible asset with amortization over the estimated useful life of 25 years and evaluation for impairment quarterly. The required upfront license payment of $2.5 million was paid by issuance of Series A-1 Convertible Preferred Shares. See Note 8 for convertible preferred shares. The value of the license includes acquisition legal costs. The license agreement requires certain development, approval and commercialization milestone payments contingent on certain future events. The Company also has a commitment to pay royalties based on any net sales of licensed products and a percentage of any sublicensing revenue. See Note 7 for license commitments.

Leases

Leases	9 Months Ended
	Jun. 30, 2020
Leases [Abstract]
Leases	Related party operating lease The Company leases facilities used for executive offices from a related company for a six-year term through December 2022, with an option to renew for an additional two-year term. The option period is not included in the operating lease right-of-use assets and liabilities. The gross amounts of assets and liabilities related to operating leases are as follows: Balance Sheet Caption June 30, 2020 Assets: Operating lease assets Operating lease right-of-use assets $ 172,776 Liabilities: Current: Operating lease liabilities Short-term operating lease liabilities $ 66,709 Long-term: Operating lease liabilities Long-term operating lease liabilities 110,167 Total lease liabilities $ 176,876 The components of lease cost are as follows: Statements of Operations Caption Three Months Ended June 30, 2020 Nine Months Ended June 30, 2020 Operating lease cost General and administrative $ 18,508 $ 57,079 Lease terms and discount rates are as follows: June 30, 2020 Remaining lease term (months): 30 Estimated incremental borrowing rate: 6.5 % The approximate future minimum lease payments under the operating leases at June 30, 2020 are as follows: Year Ending September 30, 2020 $ 18,809 September 30, 2021 76,770 September 30, 2022 77,282 September 30, 2023 19,320 Total lease payment 192,181 Less imputed interest 15,305 Present value of lease liabilities 176,876 Less current installments 66,709 Long-term lease liabilities excluding current installments $ 110,167 Cash flow information is as follows: Statements of Cash Flows Caption Nine Months Ended June 30, 2020 Cash paid for amounts included in the measurement of lease liabilities Operating lease liabilities $ 57,081 Other operating leases The Company also leases facilities through its California subsidiary under two operating leases that expire in September 2020. The Company does not intend to exercise options to extend these leases. Future minimum lease payments during the year ending September 30, 2020 are approximately $37,000. Total rent under these leases included in general and administrative expenses was $164,915 and $15,567 for the nine months ended June 30, 2020 and 2019, respectively, and $55,068 and $15,567 for the three months ended June 30, 2020 and 2019, respectively. There was no rent under these leases prior to the completion of the reverse acquisition on June 7, 2019.

Commitments

Commitments	9 Months Ended
	Jun. 30, 2020
Commitments and Contingencies Disclosure [Abstract]
Commitments	Research and other commitments The Company has commitments for contracted research organizations who perform clinical trials for the Company’s ongoing clinical studies, other service providers and the drug substance acquired in connection with a license agreement. Aggregate future contractual payments at June 30, 2020 are as follows: Year Ending September 30, 2020 $ 2,902,250 September 30, 2021 6,282,750 September 30, 2022 2,570,000 September 30, 2023 26,000 September 30, 2024 23,000 $ 11,804,000 License and royalty commitments In April 2020, through its Ontario subsidiary, the Company entered into a license agreement with a third party to obtain exclusive world-wide rights to certain know-how, patents and data relating to certain monoclonal antibodies ("the Constructs"), including sublicensing rights. An intangible asset for the acquired license has been recognized. See Note 5 for intangible asset. Under the license agreement, the Company is committed to payments of up to an aggregate amount of $363.5 million contingent upon meeting certain milestones outlined in the license agreement, primarily relating to future potential commercial approval and sales milestones. The Company also has a commitment to pay royalties based on any net sales of the products in the countries where the Company directly commercializes the products containing the Constructs and a percentage of any sublicensing revenue received by the Company and its affiliates in the countries where it does not directly commercialize the products containing the Constructs. No royalty or sublicensing payments were made to the third party during the three and nine months ended June 30, 2020 and 2019. In connection with this license agreement and pursuant to a purchase agreement entered into in April 2020, the Company acquired drug substance of one of the Constructs for an aggregate purchase price of $5.0 million, payable in two future installments, the first when the Company is ready to initiate a Phase 2 trial and the second when the Company is ready to initiate a Phase 3 trial. The purchase commitment is included in the table above in 2021 and 2022. No amounts have been paid for the drug substance during the three and nine months ended June 30, 2020. In 2016, through its Ontario subsidiary, the Company entered into a license agreement with a third party to obtain exclusive rights to certain know-how, patents and data relating to a pharmaceutical product. The Company will use the exclusive rights to develop the product for therapeutic, prophylactic and diagnostic uses in topical dermal applications and anorectal applications. No intangible assets have been recognized under the license agreement with the third party as of June 30, 2020 and September 30,2019. Under the license agreement, the Company is committed to payments of various amounts to the third party upon meeting certain milestones outlined in the license agreement, up to an aggregate amount of $18.6 million. Upon divestiture of substantially all of the assets of the Company, the Company shall pay the third party a percentage of the valuation of the licensed technology sold as determined by an external objective expert. The Company also has a commitment to pay the third party a royalty based on net sales of the product in countries where the Company, or an affiliate, directly commercializes the product and a percentage of sublicensing revenue received by the Company and its affiliates in the countries where it does not directly commercialize the product. No license or royalty payments were made to the third party during the three and nine months ended June 30, 2020 and 2019. In 2016, through its Ontario subsidiary, the Company entered into a second exclusive license agreement with a third party to obtain exclusive rights to certain know-how, patents and data relating to a pharmaceutical product. No intangible assets have been recognized under the license agreement as of June 30, 2020 and September 30, 2019. Under the license agreement, the Company is committed to payments of up to a total of $18.5 million upon meeting certain milestones outlined in the license agreement. The Company also has a commitment to pay a royalty based on net sales of the product in the countries where the Company directly commercializes the product and a percentage of sublicensing revenue received by the Company and its affiliates in the countries where it does not directly commercialize the product. No license or royalty payments were made to the third party during the three and nine months ended June 30, 2020 and 2019. Related party patent royalty commitments On August 14, 2002, through its California subsidiary, the Company entered into a patent royalty agreement with a director of the Company, whereby he would receive royalty payments in exchange for assignment of his patent rights to the Company. The royalty is 5% of gross receipts from products using this invention in excess of $500,000 annually. Retirement savings plan 401(k) contributions Executive officers and employees of the California subsidiary are eligible to receive the Company’s non-elective safe harbor employer contribution of 3% of eligible compensation under a 401(k) plan to provide retirement benefits. Employees are 100% vested in employer contributions and in any voluntary employee contributions. Contributions to the 401(k) plan were $7,996 and $2,918 during the nine months ended June 30, 2020 and 2019, respectively, and $3,461 and $2,918 during the three months ended June 30, 2020 and 2019, respectively. There were no 401(k) contributions prior to the completion of the reverse acquisition on June 7, 2019.

Temporary Equity

Temporary Equity	9 Months Ended
	Jun. 30, 2020
Temporary equity:
Temporary Equity	Series A-1 Convertible Preferred Shares In April 2020, the Company entered into a license agreement with a pharmaceutical development company to obtain exclusive world-wide rights to know-how, patents and data relating to certain monoclonal antibodies ("the Constructs"), including sublicensing rights. In exchange for the exclusive rights to develop and commercialize the Constructs, the Company issued 250 convertible preferred shares valued at $2.5 million designated as Series A-1 Convertible Preferred Shares (the “Series A-1 Shares). The Series A-1 Shares have no par value, a stated value of $10,000 per share and rank, with respect to redemption payments, rights upon liquidation, dissolution or winding-up of the Company, or otherwise, senior in preference and priority to the Company’s common shares. A holder of Series A-1 Shares is not entitled to receive dividends unless declared by the Company’s Board of Directors. Subject to certain exceptions and adjustments for share splits, each Series A-1 Share is convertible six months after its date of issuance into a number of the Company’s common shares calculated by dividing (i) the sum of the stated value of such Series A-1 Share plus a return equal to 3% of the stated value of such Series A-1 Share per annum (collectively, the “Preferred Amount”) by (ii) a fixed conversion price of $2.26. A holder of Series A-1 Shares will not have the right to convert any portion of its Series A-1 Shares if the holder, together with its affiliates, would beneficially own in excess of 4.99% of the number of common shares outstanding immediately after giving effect to such conversion (the “Beneficial Ownership Limitation”); provided, however, that upon notice to the Company, the holder may increase the Beneficial Ownership Limitation to a maximum of 9.99%. In the event of any liquidation, dissolution or winding-up of the Company, a holder of Series A-1 Shares shall be entitled to receive, before any distribution or payment may be made with respect to the Company’s common shares, an amount in cash equal to the Preferred Amount per share, plus any unpaid accrued dividends on all such shares. At any time, the Company may redeem some or all outstanding Series A-1 Shares for a cash payment per share equal to the Preferred Amount. A holder of Series A-1 Shares may require the Company to redeem the Series A-1 Shares for cash beginning 18 months after issuance if at any time after such date the 30-day volume weighted average price of the Company’s common shares is below the conversion price of $2.26. In the event of a required redemption, at the election of the Company, the redemption amount (which is equal to the Preferred Amount) may be paid in full or in up to twelve equal monthly payments with any unpaid redemption amounts accruing interest at a rate of 3% annually, compounded monthly. On the third anniversary of the date of issuance of the Series A-1 Shares, the Company has the right to convert any outstanding Series A-1 Shares into common shares. Because the convertible preferred shares are redeemable outside the control of the Company, they are presented as temporary equity rather than permanent shareholders’ equity. Issued and outstanding Series A-1 convertible preferred shares: Series A-1 Convertible Preferred Shares (#) Series A-1 Convertible Preferred Shares Balance – December 31, 2018 and September 30, 2019 - $ - Issuance of convertible preferred shares 250 $ 2,500,000 Convertible preferred shares issuance costs - (57,154 ) Preferred return on convertible preferred shares - 15,205 Balance – June 30, 2020 250 $ 2,458,051

Capital Shares

Capital Shares	9 Months Ended
	Jun. 30, 2020
Stockholders' Equity Note [Abstract]
Capital Shares	Reverse Share Split On June 7, 2019, the Company effected a reverse split of the Company's common shares at a ratio of 1-for-6. As a result of the reverse split, every six shares of the issued and outstanding common shares, without par value, consolidated into one newly issued outstanding common share, without par value, after fractional rounding. All shares and exercise prices are presented on a post-split basis in these condensed interim consolidated financial statements. Equity Offering On January 8, 2020, the Company closed a registered direct offering of 1,354,691 common shares, no par value and a concurrent private placement of Class A Purchase Warrants to purchase an aggregate of up to 1,016,036 common shares and Class B Purchase Warrants to purchase an aggregate of up to 677,358 common shares. Gross proceeds from the offering amounted to $4,360,500. The Class A Purchase Warrants are exercisable on or after July 8, 2020, at an exercise price of $4.80 per share and will expire on July 8, 2023. The Class B Purchase Warrants are exercisable on or after July 8, 2020, at an exercise price of $4.00 per share and will expire on November 8, 2020. In connection with the offering, the Company also issued warrants to purchase an aggregate of 12,364 common shares to certain affiliated designees of the placement agent as part of the placement agent’s compensation. The placement agent warrants are exercisable on or after July 6, 2020, at an exercise price of $3.20 per share, and will expire on January 6, 2025. The warrants are considered contracts on the Company’s own shares and are classified as equity. The Company allocated gross proceeds with $3,070,358 as the value of common shares and $1,008,743 as the value of Class A Purchase Warrants and $281,399 as the value of Class B Purchase Warrants under additional paid-in capital in the condensed interim consolidated statements of changes in shareholders’ equity on a relative fair value basis. The direct costs related to the issuance of the common shares and warrants were $468,699. These direct costs were recorded as an offset against gross proceeds with $330,025 being recorded under common shares and $138,674 being recorded under additional paid-in capital on a relative fair value basis. The Company also recorded the fair value of placement agent warrants in the amount of $18,051 as share based compensation to nonemployees under additional paid-in capital and an offset against gross proceeds with $12,710 being recorded under common shares and $5,341 being recorded under additional paid-in capital on a relative fair value basis. Black-Scholes option valuation model The Company uses the Black-Scholes option valuation model to determine the fair value of share-based compensation for share options and compensation warrants granted and the fair value of warrants issued. Option valuation models require the input of highly subjective assumptions including the expected price volatility. The Company calculates expected volatility based on historical volatility of the Company’s share price. When there is insufficient data available, the Company uses a peer group that is publicly traded to calculate expected volatility. Changes in the subjective input assumptions can materially affect the fair value estimates, and therefore the existing models do not necessarily provide a reliable single measure of the fair value of the Company’s warrants and share options. Warrants A summary of the Company’s warrants activity is as follows: Number of Warrants (#) Weighted Average Exercise Price Balance – December 31, 2018 - $ - Effect of reverse acquisition 362,430 31.60 Black-Scholes value payout (313,516 ) 33.01 Balance – September 30, 2019 48,914 $ 11.19 Issued 1,705,758 $ 4.47 Exercised (13,098 ) 4.81 Balance – June 30, 2020 1,741,574 $ 4.66 The weighted average contractual life remaining on the outstanding warrants at June 30, 2020 is 24 months. The following table summarizes information about the warrants outstanding at June 30, 2020: Number of Warrants (#) Exercise Prices Expiry Dates 677,358 $ 4.00 November 2020 28,124 15.90 May 2023 1,016,036 4.80 July 2023 7,692 4.81 June 2024 12,364 3.20 January 2025 1,741,574 The fair value of warrants issued during the nine months ended June 30, 2020 was estimated using the Black-Scholes option valuation model using the following assumptions: Class A Warrants Class B Warrants Placement Agent Warrants Risk free interest rate 1.61 % 1.55 % 1.61 % Expected life 3.5 years 0.83 years 5 years Expected share price volatility 103.81 % 134.15 % 101.89 % Expected dividend yield 0.00 % 0.00 % 0.00 % There were no warrants issued in the three months ended June 30, 2020 or the three and nine months ended June 30, 2019. Share Options The Company adopted an Equity Incentive Compensation Plan in 2019 (the 2019 Plan) administered by the Board of Directors, which amended and restated the 2017 Incentive Compensation Plan (the 2017 Plan). Options, restricted shares and restricted share units are eligible for grant under the 2019 Plan. The number of shares available for issuance under the 2019 Plan is 1,153,147, including shares available for the exercise of outstanding options under the 2017 Plan The Company's 2019 Plan allows options to be granted to directors, officers, employees and certain external consultants and advisers. Under the 2019 Plan, the option term is not to exceed 10 years and the exercise price of each option is determined by the independent members of the Board of Directors. Options have been granted under the 2019 Plan allowing the holders to purchase common shares of the Company as follows: Number of Options (#) Weighted Average Exercise Price Balance – December 31, 2018 315,123 $ 1.65 Effect of reverse acquisition 7,787 124.80 Expired (3,265 ) 125.75 Balance – September 30, 2019 319,645 $ 3.39 Granted 352,365 3.16 Expired (333 ) 142.26 Balance – June 30, 2020 671,677 $ 3.17 On February 12, 2020, the independent directors of the Board of Directors granted a total of 352,365 options to directors, officers and employees of the Company pursuant to the 2019 Plan. The options have a term of 10 years with 33% vesting on the grant date, with a pro rata amount of the balance vesting monthly for the next 36 months and an exercise price equal to the Nasdaq closing price on the grant date. The weighted average contractual life remaining on the outstanding options at June 30, 2020 is 102 months. The following table summarizes information about the options under the Incentive Plan outstanding and exercisable at June 30, 2020: Number of Options (#) Exercisable at June 30, 2020 (#) Range of Exercise Prices Expiry Dates 238 238 $ 768.60 Nov 2020 214 214 C$ 638.40 Nov 2021 238 238 $ 304.08 Dec 2022 3,499 3,499 $ 35.28 - 93.24 Sep 2023-Mar 2025 315,123 274,448 C$ 2.16 Aug 2027-Dec 2028 352,365 122,836 $ 3.16 Feb 2030 671,677 401,473 The fair value of options granted during the nine months ended June 30, 2020 and 2019 was estimated using the Black-Scholes option valuation model using the following assumptions: Nine Months Ended June 30, 2020 June 30, 2019 Risk free interest rate 1.45 % 1.98 % Expected life 5 years 4 years Expected share price volatility 104.14 % 79.46 % Expected dividend yield 0.00 % 0.00 % The Company recorded $511,966 and $36,300 of share-based compensation expenses for the nine months ended June 30, 2020 and 2019 respectively, and $123,191 and $11,420 for the three months ended June 30, 2020 and 2019, respectively. As of June 30, 2020, the Company had approximately $360,000 of unrecognized share-based compensation expense, which is expected to be recognized over a period of 32 months. Issued and outstanding common shares: Number of Common Shares (#) Common Shares Balance – December 31, 2018 3,239,902 $ 1,111,253 Conversion of preferred shares upon reverse acquisition 3,376,112 $ 6,260,299 Share consideration transferred upon reverse acquisition 888,454 4,633,499 Balance – September 30, 2019 7,504,468 $ 12,005,051 Common shares issued 1,354,691 $ 3,070,358 Common shares issued upon exercise of warrants 2,736 $ 52,229 Share issuance costs - (342,735 ) Balance – June 30, 2020 8,861,895 $ 14,784,903 Issued and outstanding preferred shares: Class A Preferred Shares (#) Class A Preferred Shares Balance – December 31, 2018 1,007,143 $ 6,064,013 Preferred return on Class A preferred shares - 196,286 Conversion upon reverse acquisition (1,007,143 ) (6,260,299 ) Balance – September 30, 2019 and June 30, 2020 - $ - Following the completion of the reverse acquisition on June 7, 2019, all the outstanding Class A preferred shares and accumulated accrued preferred return were fully converted to 3,376,112 common shares based on the fair market value upon conversion. Prior to conversion, the Class A preferred shares had the following features. The Class A preferred shares were voting and convertible into common shares at the option of the holder at any time. Upon the occurrence of a liquidation event, as defined in the resolutions of the shareholders dated August 28, 2017, the Class A preferred shares had a liquidation amount preference over the rights of holders of common shares or any class of shares ranking junior to Class A preferred shares. The Class A preferred shares also contained an 8% preferred return that accrued daily and compounded annually and was payable in shares upon conversion. The Company evaluated the Class A preferred shares and the embedded conversion option. The embedded conversion option did not meet the criteria for bifurcation and therefore was classified to equity.

Financial Instruments

Financial Instruments	9 Months Ended
	Jun. 30, 2020
Fair Value Disclosures [Abstract]
Financial Instruments	(a) Fair values The Company uses the fair value measurement framework for valuing financial assets and liabilities measured on a recurring basis in situations where other accounting pronouncements either permit or require fair value measurements. Fair value of a financial instrument is 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. The Company follows the fair value hierarchy which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. 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 of inputs that may be used to measure fair value: ● 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 that are supported by little or no market activity. The carrying value of certain financial instruments such as cash and cash equivalents, accounts and other receivable, accounts payable and accrued liabilities approximates fair value due to the short-term nature of such instruments. Short-term investments in U.S. Treasury Bills were recorded at amortized cost, which approximates fair value using level 1 inputs. (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 significant change in market interest rates, relative to interest rates on cash and cash equivalents due to the short-term nature of these balances. The Company is also exposed to credit risk at period end from the carrying value of its cash and cash equivalents and accounts and other receivable. The Company manages this risk by maintaining bank accounts with Canadian Chartered Banks, U.S. banks believed to be credit worthy, U.S. Treasury Bills and money market mutual funds of U.S. government securities. The Company’s cash is not subject to any external restrictions. The Company assesses the collectability of accounts receivable through a review of the current aging, as well as an analysis of historical collection rates, general economic conditions and credit status of customers. Credit risk for HST refunds receivable is not considered significant since amounts are due from the Canada Revenue Agency. (c) Foreign exchange risk The Company and its subsidiary have 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. The Company has not entered into any agreements or purchased any instruments to hedge possible currency risks. At June 30, 2020, the Company and its Canadian subsidiary had assets of C$2.6 million and the U.S. dollar was equal to 1.3643 Canadian dollars. Based on the exposure at June 30, 2020, a 10% annual change in the Canadian/U.S. exchange rate would impact the Company’s loss and other comprehensive loss by approximately $192,000. (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.

Segmented Information

Segmented Information	9 Months Ended
	Jun. 30, 2020
Segment Reporting [Abstract]
Segmented Information	The Company's operations comprise a single reportable segment engaged in the research and development, manufacturing and commercialization of innovative pharmaceutical products. As the operations comprise a single reportable segment, amounts disclosed in the financial statements for loss for the period, depreciation and total assets also represent segmented amounts.

Loss Per Share

Loss Per Share	9 Months Ended
	Jun. 30, 2020
Earnings Per Share, Basic [Abstract]
Loss Per Share	The Company had securities outstanding which could potentially dilute basic EPS in the future but were excluded from the computation of diluted loss per share in the periods presented, as their effect would have been anti-dilutive.

Related Party Transactions

Related Party Transactions	9 Months Ended
	Jun. 30, 2020
Related Party Transactions [Abstract]
Related Party Transactions	During the periods presented, the Company incurred the following related party transactions: ● During the nine months ended June 30, 2020 and 2019, the Company incurred rent expense of $57,079 and $57,896 from a related company, respectively, and $18,508 and $18,790 for the three months ended June 30, 2020 and 2019, respectively. These transactions are in the normal course of operations and are measured at the exchange amount, which is the amount of consideration established and agreed to by both parties. ● No royalty expenses to a director related to product sales by the California subsidiary were incurred during the nine months ended June 30, 2020 and 2019. During the nine months ended June 30, 2020, accounts payable and accrued liabilities of $23,457 at September 30, 2019 was paid to that director for product sales by the California subsidiary during 2019.

Subsequent Events

Subsequent Events	9 Months Ended
	Jun. 30, 2020
Subsequent Events [Abstract]
Subsequent Events	The ongoing COVID-19 pandemic has severely impacted global economic activity and has caused material disruptions to almost every industry directly or indirectly. The full impact of the pandemic remains uncertain and ongoing developments related to the pandemic may cause material impacts to the Company’s future operations, clinical study timelines and financial results. While the full impact of the COVID-19 pandemic to business and operating results presents additional uncertainty, the Company’s management continues to use reasonably available information to assess impacts to the Company’s business plans and financial condition. Class A Purchase Warrants to purchase an aggregate of up to 1,016,036 common shares and Class B Purchase Warrants to purchase an aggregate of up to 677,358 common shares became exercisable on July 8, 2020, and placement agent warrants to purchase an aggregate of 12,364 common shares became exercisable on July 6, 2020. Subsequent to June 30, 2020 and through August 10, 2020, 552,383 shares have been issued upon exercise of Class A, Class B, placement agent and previously exercisable compensation warrants with proceeds of approximately $2.42 million.

Property and Equipment (Tables)

Property and Equipment (Tables)	9 Months Ended
	Jun. 30, 2020
Property, Plant and Equipment [Abstract]
Property and equipment	June 30, 2020 September 30, 2019 Computer equipment $ 38,194 $ 42,910 Furniture and equipment 5,578 7,932 43,772 50,842 Less: accumulated depreciation (29,000 ) (29,194 ) Depreciable assets, net $ 14,772 $ 21,648 Assets not in service 5,570 51,410 Total property and equipment, net $ 20,342 $ 73,058

Leases (Tables)

Leases (Tables)	9 Months Ended
	Jun. 30, 2020
Leases [Abstract]
Lease assets and liabilities	Balance Sheet Caption June 30, 2020 Assets: Operating lease assets Operating lease right-of-use assets $ 172,776 Liabilities: Current: Operating lease liabilities Short-term operating lease liabilities $ 66,709 Long-term: Operating lease liabilities Long-term operating lease liabilities 110,167 Total lease liabilities $ 176,876
Lease cost components	Statements of Operations Caption Three Months Ended June 30, 2020 Nine Months Ended June 30, 2020 Operating lease cost General and administrative $ 18,508 $ 57,079
Lease terms and discount rates	June 30, 2020 Remaining lease term (months): 30 Estimated incremental borrowing rate: 6.5 %
Future minimum lease payments	Year Ending September 30, 2020 $ 18,809 September 30, 2021 76,770 September 30, 2022 77,282 September 30, 2023 19,320 Total lease payment 192,181 Less imputed interest 15,305 Present value of lease liabilities 176,876 Less current installments 66,709 Long-term lease liabilities excluding current installments $ 110,167
Cash paid-lease liabilities	Statements of Cash Flows Caption Nine Months Ended June 30, 2020 Cash paid for amounts included in the measurement of lease liabilities Operating lease liabilities $ 57,081

Commitments (Tables)

Commitments (Tables)	9 Months Ended
	Jun. 30, 2020
Commitments and Contingencies Disclosure [Abstract]
Future contractual payments	Year Ending September 30, 2020 $ 2,902,250 September 30, 2021 6,282,750 September 30, 2022 2,570,000 September 30, 2023 26,000 September 30, 2024 23,000 $ 11,804,000

Temporary Equity (Tables)

Temporary Equity (Tables)	9 Months Ended
	Jun. 30, 2020
Temporary equity:
Temporary equity	Series A-1 Convertible Preferred Shares (#) Series A-1 Convertible Preferred Shares Balance – December 31, 2018 and September 30, 2019 - $ - Issuance of convertible preferred shares 250 $ 2,500,000 Convertible preferred shares issuance costs - (57,154 ) Preferred return on convertible preferred shares - 15,205 Balance – June 30, 2020 250 $ 2,458,051

Capital Shares (Tables)

Capital Shares (Tables)	9 Months Ended
	Jun. 30, 2020
Stockholders' Equity Note [Abstract]
Warrant activity	Number of Warrants (#) Weighted Average Exercise Price Balance – December 31, 2018 - $ - Effect of reverse acquisition 362,430 31.60 Black-Scholes value payout (313,516 ) 33.01 Balance – September 30, 2019 48,914 $ 11.19 Issued 1,705,758 $ 4.47 Exercised (13,098 ) 4.81 Balance – June 30, 2020 1,741,574 $ 4.66
Warrants outstanding	Number of Warrants (#) Exercise Prices Expiry Dates 677,358 $ 4.00 November 2020 28,124 15.90 May 2023 1,016,036 4.80 July 2023 7,692 4.81 June 2024 12,364 3.20 January 2025 1,741,574
Warrant valuation model	Class A Warrants Class B Warrants Placement Agent Warrants Risk free interest rate 1.61 % 1.55 % 1.61 % Expected life 3.5 years 0.83 years 5 years Expected share price volatility 103.81 % 134.15 % 101.89 % Expected dividend yield 0.00 % 0.00 % 0.00 %
Stock option activity	Number of Options (#) Weighted Average Exercise Price Balance – December 31, 2018 315,123 $ 1.65 Effect of reverse acquisition 7,787 124.80 Expired (3,265 ) 125.75 Balance – September 30, 2019 319,645 $ 3.39 Granted 352,365 3.16 Expired (333 ) 142.26 Balance – June 30, 2020 671,677 $ 3.17
Stock options outstanding	Number of Options (#) Exercisable at June 30, 2020 (#) Range of Exercise Prices Expiry Dates 238 238 $ 768.60 Nov 2020 214 214 C$ 638.40 Nov 2021 238 238 $ 304.08 Dec 2022 3,499 3,499 $ 35.28 - 93.24 Sep 2023-Mar 2025 315,123 274,448 C$ 2.16 Aug 2027-Dec 2028 352,365 122,836 $ 3.16 Feb 2030 671,677 401,473
Fair value of options granted assumptions	Nine Months Ended June 30, 2020 June 30, 2019 Risk free interest rate 1.45 % 1.98 % Expected life 5 years 4 years Expected share price volatility 104.14 % 79.46 % Expected dividend yield 0.00 % 0.00 %
Issued and outstanding common and preferred shares	Number of Common Shares (#) Common Shares Balance – December 31, 2018 3,239,902 $ 1,111,253 Conversion of preferred shares upon reverse acquisition 3,376,112 $ 6,260,299 Share consideration transferred upon reverse acquisition 888,454 4,633,499 Balance – September 30, 2019 7,504,468 $ 12,005,051 Common shares issued 1,354,691 $ 3,070,358 Common shares issued upon exercise of warrants 2,736 $ 52,229 Share issuance costs - (342,735 ) Balance – June 30, 2020 8,861,895 $ 14,784,903

Property and Equipment (Details

Property and Equipment (Details) - USD ($)	Jun. 30, 2020	Sep. 30, 2019
Property and equipment, gross	$ 43,772	$ 50,842
Less: accumulated depreciation	(29,000)	(29,194)
Total property and equipment, net	20,342	73,058
Computer Equipment
Property and equipment, gross	38,194	42,910
Furniture and Equipment
Property and equipment, gross	5,578	7,932
Depreciable Assets, Net
Total property and equipment, net	14,772	21,648
Assets Not in Service
Total property and equipment, net	$ 5,570	$ 51,410

Property and Equipment (Detai_2

Property and Equipment (Details Narrative) - USD ($)	3 Months Ended		9 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Property, Plant and Equipment [Abstract]
Depreciation expense	$ 1,992	$ 2,099	$ 7,046	$ 3,015

Leases (Details)

Leases (Details) - USD ($)	Jun. 30, 2020	Sep. 30, 2019
Assets:
Operating lease right-of-use assets	$ 172,776	$ 0
Current:
Short-term operating lease liabilities	66,709	0
Long-term:
Long-term operating lease liabilities	110,167	$ 0
Total lease liabilities	$ 176,876

Leases (Details 1)

Leases (Details 1) - USD ($)	3 Months Ended	9 Months Ended
	Jun. 30, 2020	Jun. 30, 2020
General and Administrative Expense
Operating lease cost	$ 18,508	$ 57,079

Leases (Details 2)

Leases (Details 2)	Jun. 30, 2020
Leases [Abstract]
Remaining lease term (months)	30 months
Estimated incremental borrowing rate	6.50%

Leases (Details 3)

Leases (Details 3) - USD ($)	Jun. 30, 2020	Sep. 30, 2019
Year Ending September 30,
2020	$ 18,809
2021	76,770
2022	77,282
2023	19,320
Total	192,181
Less imputed interest	15,305
Present value of lease liabilities	176,876
Less current installments	66,709	$ 0
Long-term lease liabilities excluding current installments	$ 110,167	$ 0

Leases (Details 4)

Leases (Details 4)	9 Months Ended
	Jun. 30, 2020USD ($)
Leases [Abstract]
Cash paid for amounts included in the measurement of lease liabilities	$ 57,081

Leases (Details Narrative)

Leases (Details Narrative) - USD ($)	3 Months Ended		9 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Leases [Abstract]
Rent expense	$ 55,068	$ 15,567	$ 164,915	$ 15,567

Commitments (Details)

Commitments (Details)	Jun. 30, 2020USD ($)
Year Ending September 30,
2020	$ 2,902,250
2021	6,282,750
2022	2,570,000
2023	26,000
2024	23,000
Total	$ 11,804,000

Commitments (Details Narrative)

Commitments (Details Narrative) - USD ($)	3 Months Ended		9 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Commitments and Contingencies Disclosure [Abstract]
Employer contributions to 401K plan	$ 3,461	$ 2,918	$ 7,996	$ 2,918

Temporary Equity (Details)

Temporary Equity (Details) - Series A-1 Convertible Preferred Shares	9 Months Ended
	Jun. 30, 2020USD ($)shares
Beginning balance, shares	0
Beginning balance, amount | $	$ 0
Issuance of convertible preferred shares, shares	250
Issuance of convertible preferred shares, amount | $	$ 2,500,000
Convertible preferred shares issuance costs, shares	0
Convertible preferred shares issuance costs, amount	(57,154)
Preferred return on convertible preferred shares, shares	0
Preferred return on convertible preferred shares, amount | $	$ 15,205
Ending balance, shares	250
Ending balance, amount | $	$ 2,458,051

Capital Shares (Details)

Capital Shares (Details) - $ / shares	9 Months Ended
	Jun. 30, 2020	Sep. 30, 2019
Stockholders' Equity Note [Abstract]
Number of warrants, beginning balance	48,914	0
Effect of reverse acquisition		362,430
Black-Scholes value payout		(313,516)
Issued	1,705,758
Exercised	(13,098)
Number of warrants, ending balance	1,741,574	48,914
Weighted average exercise price, beginning balance	$ 11.19	$ .00
Effect of reverse acquisition		31.60
Black-Scholes value payout		33.01
Issued	4.47
Exercised	4.81
Weighted average exercise price, ending balance	$ 4.66	$ 11.19

Capital Shares (Details 1)

Capital Shares (Details 1) - $ / shares	9 Months Ended
	Jun. 30, 2020	Sep. 30, 2019	Dec. 31, 2018
Number of warrants	1,741,574	48,914	0
Exercise price	$ 4.66	$ 11.19	$ .00
Warrant 1
Number of warrants	677,358
Exercise price	$ 4
Expiry date	November 2020
Warrant 2
Number of warrants	28,124
Exercise price	$ 15.90
Expiry date	May 2023
Warrant 3
Number of warrants	1,016,036
Exercise price	$ 1.80
Expiry date	July 2023
Warrant 4
Number of warrants	7,692
Exercise price	$ 4.81
Expiry date	June 2024
Warrant 5
Number of warrants	12,364
Exercise price	$ 3.20
Expiry date	January 2025

Capital Shares (Details 2)

Capital Shares (Details 2)	9 Months Ended
	Jun. 30, 2020
Class A Warrants
Risk free interest rate	1.61%
Expected life (years)	3 years 6 months
Expected share price volatility	103.81%
Expected dividend yield	0.00%
Class B Warrants
Risk free interest rate	1.55%
Expected life (years)	9 months 29 days
Expected share price volatility	134.15%
Expected dividend yield	0.00%
Placement Agent Warrants
Risk free interest rate	1.61%
Expected life (years)	5 years
Expected share price volatility	101.89%
Expected dividend yield	0.00%

Capital Shares (Details 3)

Capital Shares (Details 3) - $ / shares	9 Months Ended
	Jun. 30, 2020	Sep. 30, 2019
Stockholders' Equity Note [Abstract]
Number of options, beginning balance	319,645	315,123
Number of options granted	352,365
Number of options effect of reverse acquisition		7,787
Number of options expired	(333)	(3,265)
Number of options, ending balance	671,677	319,645
Weighted average exercise price, beginning balance	$ 3.39	$ 1.65
Weighted average exercise price granted	3.16
Weighted average exercise price effect of reverse acquisition		124.80
Weighted average exercise price expired	142.26	125.75
Weighted average exercise price, ending balance	$ 3.17	$ 3.39

Capital Shares (Details 4)

Capital Shares (Details 4)	9 Months Ended
	Jun. 30, 2020$ / sharesshares	Jun. 30, 2020$ / sharesshares	Sep. 30, 2019$ / sharesshares	Dec. 31, 2018$ / sharesshares
Options outstanding	671,677	671,677	319,645	315,123
Options exercisable	401,473	401,473
Range of exercise prices | $ / shares	$ 3.17		$ 3.39	$ 1.65
Stock Option 1
Options outstanding	238	238
Options exercisable	238	238
Range of exercise prices | $ / shares	$ 768.60
Expiry dates	November 2020
Stock Option 2
Options outstanding	214	214
Options exercisable	214	214
Range of exercise prices | $ / shares		$ 638.40
Expiry dates	November 2021
Stock Option 3
Options outstanding	238	238
Options exercisable	238	238
Range of exercise prices | $ / shares	$ 304.08
Expiry dates	December 2022
Stock Option 4
Options outstanding	3,499	3,499
Options exercisable	3,499	3,499
Expiry dates	September 2023 - March 2025
Stock Option 4 | Minumum
Range of exercise prices | $ / shares		$ 35.28
Stock Option 4 | Maximum
Range of exercise prices | $ / shares		$ 93.24
Stock Option 5
Options outstanding	315,123	315,123
Options exercisable	274,448	274,448
Range of exercise prices | $ / shares	$ 2.16
Expiry dates	August 2027 - December 2028
Stock Option 6
Options outstanding	352,365	352,365
Options exercisable	122,836	122,836
Range of exercise prices | $ / shares	$ 3.16
Expiry dates	February 2030

Capital Shares (Details 5)

Capital Shares (Details 5)	9 Months Ended
	Jun. 30, 2020	Jun. 30, 2019
Stockholders' Equity Note [Abstract]
Risk free interest rate	1.45%	1.98%
Expected life (years)	5 years	4 years
Expected share price volatility	104.14%	79.46%
Expected dividend yield	0.00%	0.00%

Capital Shares (Details 6)

Capital Shares (Details 6) - USD ($)	3 Months Ended		9 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Sep. 30, 2019	Jun. 30, 2019
Beginning balance, amount	$ 6,930,943	$ 2,772,359	$ 5,256,130		$ 3,550,145
Preferred return for Class A preferred shares, amount	(15,205)	0	(15,205)		0
Issuance of common shares in equity offering, amount			4,360,500
Issuance of common shares upon exercise of warrants, amount	0		0
Issuance costs			(468,699)
Ending balance, amount	$ 5,342,138	$ 6,212,616	$ 5,342,138	$ 5,256,130	$ 6,212,616
Common Shares
Beginning balance, shares	8,859,159	3,239,902	7,504,468	3,239,902	3,239,902
Beginning balance, amount	$ 14,732,674	$ 1,111,253	$ 12,005,051	$ 1,111,253	$ 1,111,253
Conversion of preferred shares upon reverse acquisition, shares				3,376,112
Conversion of preferred shares upon reverse acquisition, amount				$ 6,260,299
Share consideration transferred upon reverse acquisition, shares				888,454
Share consideration transferred upon reverse acquisition, amount				$ 4,633,499
Issuance of common shares in equity offering, shares			1,354,691
Issuance of common shares in equity offering, amount			$ 3,070,358
Issuance of common shares upon exercise of warrants, shares	2,736		2,736
Issuance of common shares upon exercise of warrants, amount	$ 52,229		$ 52,229
Issuance costs			$ (342,735)
Ending balance, shares	8,861,895	7,504,468	8,861,895	7,504,468	7,504,468
Ending balance, amount	$ 14,784,903	$ 12,005,051	$ 14,784,903	$ 12,005,051	$ 12,005,051
Class A Preferred Shares
Beginning balance, shares			0	1,007,143
Beginning balance, amount	$ 0	6,176,993	$ 0	$ 6,064,013	5,945,520
Preferred return on Class A preferred shares, shares				0
Preferred return for Class A preferred shares, amount		83,306		$ 196,286	314,779
Conversion of preferred shares upon reverse acquisition, shares				(1,007,143)
Conversion of preferred shares upon reverse acquisition, amount				$ (6,260,299)
Ending balance, shares	0		0	0
Ending balance, amount	$ 0	$ 0	$ 0	$ 0	$ 0

Capital Shares (Details Narrati

Capital Shares (Details Narrative) - USD ($)	3 Months Ended		9 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Stockholders' Equity Note [Abstract]
Weighted average contractual life remaining on outstanding warrants			24 months
Shares remaining under 2019 Plan	1,153,147		1,153,147
Weighted average contractual life remaining on outstanding options			102 months
Share-based compensation	$ 11,420	$ 123,191	$ 511,966	$ 36,300
Unrecognized share-based compensation	$ 360,000		$ 360,000
Unrecognized share-based compensation recognition period			32 months

Related Party Transactions (Det

Related Party Transactions (Details Narrative) - USD ($)	3 Months Ended		9 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Related Party Transactions [Abstract]
Rent expense	$ 18,508	$ 18,790	$ 57,079	$ 57,896