Document and Entity Information
Document and Entity Information | 6 Months Ended |
Sep. 30, 2015 | |
Document And Entity Information | |
Entity Registrant Name | Algae Dynamics Corp. |
Entity Central Index Key | 1,607,679 |
Document Type | S1 |
Document Period End Date | Sep. 30, 2015 |
Amendment Flag | false |
Current Fiscal Year End Date | --03-31 |
Is Entity a Well-known Seasoned Issuer? | No |
Is Entity a Voluntary Filer? | No |
Is Entity's Reporting Status Current? | Yes |
Entity Filer Category | Smaller Reporting Company |
Condensed Interim Balance Sheet
Condensed Interim Balance Sheets (Unaudited) - CAD | Sep. 30, 2015 | Mar. 31, 2015 | Mar. 31, 2014 |
Current Assets | |||
Cash | CAD 3,598 | CAD 3,084 | CAD 64,674 |
Prepaid expenses | 71,499 | 5,519 | 12,124 |
Amounts receivable from shareholder (Note 11) | 30,902 | 29,967 | 0 |
Amounts receivable | 5,221 | 10,046 | 7,875 |
Total Current Assets | 111,220 | 48,616 | 84,673 |
Equipment and leasehold improvements (Note 3) | 68,623 | 77,500 | 33,318 |
Intangible assets (Note 4) | 15,970 | 15,970 | 7,141 |
Total Assets | 195,813 | 142,086 | 125,132 |
Current Liabilities | |||
Accounts payable and accrued liabilities (Note 11) | 200,628 | 161,877 | 87,530 |
Advances from shareholders (Note 5) | 380,670 | 367,267 | 431,406 |
Term Loan (Note 6) | 30,000 | 0 | 0 |
Convertible Note (Note 7) | 8,184 | 0 | 0 |
Warrant liability (Note 8b) | 348,665 | 364,878 | 0 |
Total Current Liabilities | 968,147 | 894,022 | 518,936 |
STOCKHOLDERS' (DEFICIENCY) | |||
Common stock (Note 8a), $Nil par value, unlimited amount authorized, 9,318,910 issued and outstanding as of September 30, 2015, (March 31, 2015 - 9,256,410 and 2014 - 8,606,250) | 626,327 | 542,323 | 100 |
Additional paid in capital (Note 8c) | 532,954 | 324,916 | 0 |
Warrants (Note 8b) | 190,198 | 190,198 | 0 |
Equity to be issued (Note 7a) | 0 | 0 | 328,180 |
Accumulated deficit | (2,121,813) | (1,809,373) | (722,084) |
Total Stockholders' (Deficiency) | (772,334) | (751,936) | (393,804) |
Total Liabilities and Stockholders' (Deficiency) | CAD 195,813 | CAD 142,086 | CAD 125,132 |
Condensed Interim Balance Shee3
Condensed Interim Balance Sheets (Unaudited) (Parenthetical) - CAD / shares | Sep. 30, 2015 | Mar. 31, 2015 | Mar. 31, 2014 |
Statement of Financial Position [Abstract] | |||
Common Stock Par Value | CAD 0 | CAD 0 | CAD 0 |
Common Stock Authorized | |||
Common Stock Issued | 9,318,910 | 9,256,410 | 8,606,250 |
Common Stock Outstanding | 9,318,910 | 9,256,410 | 8,606,250 |
Condensed Interim Statements of
Condensed Interim Statements of Operations and Comprehensive Loss (Unaudited) - CAD | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Mar. 31, 2015 | Mar. 31, 2014 | |
OPERATING EXPENSES | ||||||
Accretion expense (Note 7) | CAD 2,076 | CAD 0 | CAD 2,076 | CAD 0 | CAD 0 | CAD 0 |
Amortization expense (Note 3) | 4,440 | 4,840 | 8,878 | 8,676 | 20,338 | 6,737 |
Business development | 4,960 | 10,711 | 7,665 | 15,813 | 25,145 | 14,575 |
Foreign Exchange loss | 1,046 | 0 | 1,046 | 0 | 0 | 0 |
Interest | 3,185 | 0 | 5,016 | 0 | 0 | 0 |
Management and contract fees | 0 | 90,875 | 0 | 119,875 | 0 | 120,000 |
Occupancy costs | 8,105 | 10,784 | 15,949 | 21,484 | 41,470 | 14,836 |
Office and general | 1,793 | 10,226 | 2,461 | 15,783 | 18,915 | 7,218 |
Professional fees (Note 8b) | 57,912 | 160,411 | 70,901 | 355,967 | 582,564 | 49,987 |
Research and development | 993 | 8,331 | 1,797 | 14,538 | 46,228 | 3,006 |
Stock based compensation (Note 8c) | 112,976 | 0 | 188,026 | 0 | 324,916 | 0 |
Telephone and internet services | 3,444 | 3,359 | 6,801 | 6,324 | 14,802 | 9,195 |
Travel | 6,028 | 1,653 | 9,039 | 8,138 | 12,911 | 7,402 |
Total Operating Expenses | 206,958 | 301,190 | 319,655 | 566,598 | 1,087,289 | 232,956 |
Operating Loss | 206,958 | 301,190 | 319,655 | 566,598 | 1,087,289 | 232,956 |
Deferred income tax recovery | (7,215) | 0 | (7,215) | 0 | 0 | 0 |
Net Loss and Comprehensive Loss for the period | CAD 199,743 | CAD 301,190 | CAD 312,440 | CAD 566,598 | CAD 1,087,289 | CAD 232,956 |
Net loss per common share - | ||||||
Basic and diluted | CAD 0.02 | CAD 0.03 | CAD 0.03 | CAD 0.06 | CAD 0.12 | CAD 0.03 |
Weighted average common shares outstanding - basic and diluted | 9,279,779 | 9,207,010 | 9,268,568 | 8,899,320 | 9,238,710 | 8,668,418 |
Condensed Interim Statements o5
Condensed Interim Statements of Stockholders' Equity (Deficiency) (Unaudited) - CAD | Common Stock | Warrants | Additional Paid-In Capital | Equity To Be Issued | Accumulated Deficit | Total |
Beginning Balance, Shares at Mar. 31, 2013 | 8,606,250 | |||||
Beginning Balance, Amount at Mar. 31, 2013 | CAD 100 | CAD 0 | CAD 0 | CAD 0 | CAD (489,128) | CAD (489,028) |
Unit subscriptions received | CAD 328,180 | 328,180 | ||||
Net loss and comprehensive loss for the period | CAD (232,956) | (232,956) | ||||
Ending Balance, Shares at Mar. 31, 2014 | 8,606,250 | |||||
Ending Balance, Amount at Mar. 31, 2014 | CAD 100 | CAD 0 | CAD 0 | CAD 328,180 | CAD (722,084) | CAD (393,804) |
Valuation of warrants | CAD (171,308) | 171,308 | ||||
Warrants granted for sevices | 19,290 | CAD 19,290 | ||||
Unit issue costs | CAD (1,100) | CAD (400) | (1,500) | |||
Warrants exercised, Amount | CAD 1,113 | 1,113 | ||||
Warrants exercised, Shares | 25,000 | |||||
Warrant liability valuation transferredon exercise, Amount | CAD 32,675 | 32,675 | ||||
Stock options (Note 8c) | CAD 324,916 | 324,916 | ||||
Shares issued (Note 12), Amount | CAD 689,116 | CAD (328,180) | 360,936 | |||
Shares issued (Note 12), Shares | 625,160 | |||||
Net loss and comprehensive loss for the period | CAD (1,087,289) | (1,087,289) | ||||
Valuation of warrants classified as warrant liabilities | CAD (8,273) | (8,273) | ||||
Ending Balance, Shares at Mar. 31, 2015 | 9,256,410 | |||||
Ending Balance, Amount at Mar. 31, 2015 | CAD 542,323 | CAD 190,198 | CAD 324,916 | CAD 0 | CAD (1,809,373) | (751,936) |
Warrants exercised, Amount | CAD 596 | 596 | ||||
Warrants exercised, Shares | 12,500 | |||||
Warrant liability valuation transferredon exercise, Amount | CAD 16,213 | 16,213 | ||||
Warrant liability valuation transferredon exercisem, Shares | ||||||
Stock options (Note 8c) | CAD 188,026 | 188,026 | ||||
Shares issued (Note 12), Amount | CAD 67,195 | 67,195 | ||||
Shares issued (Note 12), Shares | 50,000 | |||||
Conversion feature of convertible note, net of deferred income taxes of $7,216 (Note 7) | CAD 20,012 | 20,012 | ||||
Net loss and comprehensive loss for the period | CAD (312,440) | (312,440) | ||||
Ending Balance, Shares at Sep. 30, 2015 | 9,318,910 | |||||
Ending Balance, Amount at Sep. 30, 2015 | CAD 626,327 | CAD 190,198 | CAD 532,954 | CAD 0 | CAD (2,121,813) | CAD (772,334) |
Condensed Interim Statements o6
Condensed Interim Statements of Stockholders' Equity (Deficiency) (Unaudited) (Parenthetical) - CAD | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Mar. 31, 2015 | Mar. 31, 2014 | |
Statement of Stockholders' Equity [Abstract] | ||||||
Deferred income taxes | CAD 7,215 | CAD 0 | CAD 7,215 | CAD 0 | CAD 0 | CAD 0 |
Condensed Statements of Cash Fl
Condensed Statements of Cash Flows (Unaudited) - CAD | 6 Months Ended | 12 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Mar. 31, 2015 | Mar. 31, 2014 | |
Operating activities | ||||
Net loss for the period | CAD (312,440) | CAD (566,598) | CAD (1,087,289) | CAD (232,956) |
Items not affecting cash | ||||
Amortization | 8,878 | 8,676 | 20,338 | 6,737 |
Stock based compensation (Notes 8b and 8c) | 188,026 | 256,590 | 733,486 | 0 |
Units issued in settlement of debt (Note 7a) | 0 | 0 | 11,256 | 0 |
Deferred income tax recovery | (7,215) | 0 | 0 | 0 |
Accretion expense | 2,076 | 0 | 0 | 0 |
Unrealized foreign exchange loss | 1,046 | 0 | 0 | 0 |
Change in non-cash operating assets and liabilities | ||||
Prepaid expenses | 1,215 | 7,173 | 6,605 | (12,124) |
Accounts receivable | 4,825 | (17,249) | (10,820) | (4,262) |
Accounts payable | 38,751 | 47,451 | 74,347 | 35,500 |
Net cash flows used in operating activities | (74,838) | (263,957) | (252,077) | (207,105) |
Financing activities | ||||
Advances from shareholders | 12,468 | (6,469) | (94,107) | 5,833 |
Term Loan | 30,000 | 0 | 0 | 0 |
Convertible Note | 32,288 | 0 | 0 | 0 |
Unit subscriptions received | 0 | 319,680 | 349,680 | 303,180 |
Unit issue costs | 0 | (1,500) | (1,500) | 0 |
Warrants exercised | 596 | 0 | 1,113 | 0 |
Net cash flows from financing activities | 75,352 | 311,711 | 255,186 | 309,013 |
Investing activities | ||||
Investment in equipment and leasehold improvements | 0 | (50,322) | (55,870) | (40,055) |
Investment in patents | 0 | (5,893) | (8,829) | (1,180) |
Net cash flows used in investing activities | 0 | (56,215) | (64,699) | (41,235) |
Net change in cash | 514 | (8,461) | (61,590) | 60,673 |
Cash position - beginning of period | 3,084 | 64,674 | 64,674 | 4,001 |
Cash position - end of period | CAD 3,598 | CAD 56,213 | CAD 3,084 | CAD 64,674 |
1. Nature of the Business and G
1. Nature of the Business and Going Concern | 6 Months Ended | 12 Months Ended |
Sep. 30, 2015 | Mar. 31, 2015 | |
Accounting Policies [Abstract] | ||
1. Nature of the Business and Going Concern | Algae Dynamics Corp. (the Company) was incorporated under the Canada Business Corporations Act on October 7, 2008 as Converted Carbon of Canada Corp. On November 19, 2010, the Company amended its Articles of Incorporation to change its name to Converted Carbon Technologies Corp. and a further amendment was approved by the shareholders on August 28, 2014 to change the name to Algae Dynamics Corp. The Company is a nutrient ingredient company and has developed a scalable Pure-BioSilo for sanitary cultivation of microalgae targeted to the functional food and beverage additives and supplement markets. The Companys planned principal operations are the design, engineering and manufacturing of a proprietary algae cultivation system for the high volume production of pure contaminant-free algae biomass. The Company is currently conducting research and development activities to operationalize certain patented technology so it can produce pure contaminate-free algae biomass. During the year ended March 31, 2014, the Company secured a research facility in Mississauga, Ontario, which houses all of its employees and research and development activities. The Company is also in the process of raising additional equity capital to support the completion of its development activities to begin production of pure contaminate-free algae biomass as soon as possible. The Company filed a Form S-1 registration Statement with the U.S Securities and Exchange Commission (SEC) as an initial registration of common shares. The registration was declared effective by the SEC on November 21, 2014. In addition, the Company had an application for a trading symbol cleared by FINRA as ADYNF on July 17, 2015. The Companys activities are subject to significant risks and uncertainties, including failing to obtain patents and failing to secure additional funding to operationalize the Companys current technology before another company develops similar technology. These condensed interim financial statements have been prepared on the basis of a going concern, which contemplates the realization of assets and the settlement of liabilities in the normal course of business. The Company is in the development stage and has not yet realized profitable operations and has relied on non-operational sources to fund operations. The Company has suffered recurring losses and additional future losses are anticipated as the Company has not yet been able to generate revenue. In addition, as of September 30, 2015, the Company has a working capital deficiency of $856,927 (March 31, 2015 - $845,406) and an accumulated deficit of $2,121,813 (March 31, 2015 - $1,809,373). The Companys ability to continue as a going concern is dependent on successfully executing its business plan, which includes the raising of additional funds. The Company will continue to seek additional forms of debt or equity financing, but it cannot provide assurances that it will be successful in doing so. These circumstances raise substantial doubt as to the ability of the Company to meet its obligations as they come due and accordingly, the appropriateness of the use of accounting principles applicable to a going concern. The accompanying condensed interim financial statements do not include any adjustments that might be necessary if the Company is unable to continue as a going concern. Such adjustments could be material. | Algae Dynamics Corp. (the Company) was incorporated under the Canada Business Corporations Act on October 7, 2008 as Converted Carbon of Canada Corp. On November 19, 2010, the Company amended its Articles of Incorporation to change its name to Converted Carbon Technologies Corp. and a further amendment was approved by the shareholders on August 28, 2014 to change the name to Algae Dynamics Corp. The Company is a nutrient ingredient company and has developed a scalable Pure-BioSilo for sanitary cultivation of microalgae targeted to the functional food and beverage additives and supplement markets. The Companys planned principal operations are the design, engineering and manufacturing of a proprietary algae cultivation system for the high volume production of pure contaminant-free algae biomass. The Company is currently conducting research and development activities to operationalize certain technology currently in the allowed patent application stage, so it can produce pure contaminate-free algae biomass. During the year ended March 31, 2014, the Company secured a research facility in Mississauga, Ontario, which houses all of its employees and research and development activities. The Company is also in the process of raising additional equity capital to support the completion of its development activities to begin production of pure contaminate-free algae biomass as soon as possible. The Company filed a Form S-1 registration Statement with the U.S Securities and Exchange Commission (SEC) as an initial registration of common shares. The registration was declared effective by the SEC on November 21, 2014. The Companys activities are subject to significant risks and uncertainties, including failing to obtain patents and failing to secure additional funding to operationalize the Companys current technology before another company develops similar technology. These financial statements have been prepared on the basis of a going concern, which contemplates the realization of assets and the settlement of liabilities in the normal course of business. The Company is in the development stage and has not yet realized profitable operations and has relied on non-operational sources to fund operations. The Company has suffered recurring losses and additional future losses are anticipated as the Company has not yet been able to generate revenue. In addition, as of March 31, 2015, the Company has a working capital deficiency of $845,406 (2014 - $434,263) and an accumulated deficit of $1,809,373 (2014 - $722,084). The Companys ability to continue as a going concern is dependent on successfully executing its business plan, which includes the raising of additional funds. The Company will continue to seek additional forms of debt or equity financing, but it cannot provide assurances that it will be successful in doing so. These circumstances raise substantial doubt as to the ability of the Company to meet its obligations as they come due and accordingly, the appropriateness of the use of accounting principles applicable to a going concern. The accompanying financial statements do not include any adjustments that might be necessary if the Company is unable to continue as a going concern. Such adjustments could be material. |
2. Presentation of Financial St
2. Presentation of Financial Statements | 6 Months Ended | 12 Months Ended |
Sep. 30, 2015 | Mar. 31, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
2. Presentation of Financial Statements | Basis of Presentation These unaudited condensed interim financial statements should be read in conjunction with the financial statements for the Companys most recently completed fiscal year ended March 31, 2015. These condensed interim financial statements do not include all disclosures required in annual financial statements, but rather are prepared in accordance with recommendations for interim financial statements in conformity with accounting principles generally accepted in the United States of America ("U.S. GAAP"). These unaudited condensed interim financial statements have been prepared using the same accounting policies, and methods as those used by the Company in the annual audited financial statements for the year ended March 31, 2015, except when disclosed below. The unaudited condensed interim financial statements contain all adjustments (consisting of only normal recurring adjustments) which are necessary to present fairly the financial position of the Company as at September 30, 2015, and the results of its operations for the three and six month periods ended September 30, 2015 and 2014 and its cash flows for the six month periods ended September 30, 2015 and 2014. Note disclosures have been presented for material updates to the information previously reported in the annual audited financial statements. In June 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update No. 2014-10 ASU 2014-10 to eliminate certain financial reporting requirements for development stage entities. The amendments in ASU 2014-10 remove the incremental financial reporting requirements from US GAAP for development stage entities, including the presentation of inception-to-date information in the statements of income, cash flows and shareholder equity, and disclosure of the financial statements as those of a development stage entity. The Company has chosen to early adopt these amendments effective for its fiscal year ended March 31, 2013 and onwards. Estimates The preparation of these condensed interim financial statements has required management to make estimates and assumptions that affect the amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of the revenues and expenses during the reporting period. On an ongoing basis, the Company evaluates its estimates, including those related to provision for doubtful accounts, accrued liabilities and contingencies and the valuation of income taxes, stock based compensation, warrants, convertible debt and intangible assets. The Company bases its estimates on historical experiences and on various other assumptions believed to be reasonable under the circumstances. Actual results could differ from those estimates. As adjustments become necessary, they are reported in earnings in the period in which they become known. | Basis of Presentation The financial statements have been prepared in accordance with U.S Generally Accepted Accounting Principles (US GAAP). All adjustments considered necessary for a fair presentation of financial position, results of operations and cash flows as of March 31, 2015 have been included. The Companys financial statements are prepared using the accrual basis of accounting in accordance with US GAAP and the Companys functional and reporting currency is the Canadian dollar. In June 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update No. 2014-10 ASU 2014-10 to eliminate certain financial reporting requirements for development stage entities. The amendments in ASU 2014-10 remove the incremental financial reporting requirements from US GAAP for development stage entities, including the presentation of inception-to-date information in the statements of income, cash flows and shareholder equity, and disclosure of the financial statements as those of a development stage entity. The Company has chosen to early adopt these amendments effective for its fiscal year ended March 31, 2013 and onwards. Use of Estimates and Assumptions The preparation of the financial statements in accordance with US 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 revenues and expenses during the reporting period. Actual amounts could materially differ from these estimates. The significant areas requiring the use of management estimates are related to the valuation of deferred taxes, stock based compensation, warrants, and intangible assets. Although these estimates are based on managements knowledge of current events and actions management may undertake in the future, actual results may ultimately differ materially from those estimates. |
2a. Summary of Significant Acco
2a. Summary of Significant Accounting Policies | 12 Months Ended |
Mar. 31, 2015 | |
Accounting Policies [Abstract] | |
2a. Summary of Significant Accounting Policies | Cash and Cash Equivalents Cash and cash equivalents include cash on hand, and all highly liquid debt instruments purchased with an original maturity of three months or less. As at March 31, 2015 and March 31, 2014 there were no cash equivalents. Prepaid Expenses Prepaid expenses consist of services paid, for which the Company has not yet received the benefit. Equipment and Leasehold Improvements Equipment and leasehold improvements are stated at cost less accumulated amortization and accumulated impairment losses. Cost includes expenditures that are directly attributable to the acquisition of the asset. Subsequent costs are included in the assets carrying amount or recognized as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the Company and the cost can be measured reliably. The carrying amount of an asset is derecognized when replaced. Repairs and maintenance costs are charged to the statements of operations, during the year in which they are incurred. Amortization is provided for over the estimated useful life of the asset as follows: Computer equipment 30% on a declining balance Production equipment 20% on a declining balance Leasehold improvements are amortized over the term of the lease or useful life of the improvements, whichever is shorter, which is currently 5 years. Useful lives and residual values are reviewed and adjusted, if appropriate, at the end of each reporting period. An assets carrying amount is written down immediately to its recoverable amount if the assets carrying amount is greater than its estimated recoverable amount. The cost and accumulated amortization of assets retired or sold are removed from the respective accounts and any gain or loss is recognized in operations. Intangible Assets Intangible assets are comprised of patents. Patents represent capitalized legal costs incurred in connection with applications for patents. In-process patents are not amortized. All patents subject to amortization are amortized on a straight line basis over an estimated useful life. The Company regularly evaluates patents and patent applications for impairment or abandonment, at which point the Company charges the remaining net book value to expenses. Impairment of Long-Lived Assets The Company reviews its long-lived assets for impairment whenever events and circumstances indicate that the carrying value of an asset might not be recoverable. An impairment loss, measured as the amount by which the carrying amount exceeds the fair value, is recognized if the carrying amount exceeds estimated undiscounted future cash flows. Research and Development Research and development costs include costs directly attributable to the conduct of research and development programs, including the cost of consulting fees, materials, supplies, and the maintenance of research equipment. All costs associated with research and development are expensed as incurred. The approved refundable portion of tax credits are netted against the related expenses. Non-refundable investment tax credits are recorded in the period when reasonable assurance exists that the Company has complied with the terms and conditions required for approval of the tax credit and it is more likely than not that the Company will realize the benefits of these tax credits against the deferred taxes. Refundable investment tax credits are recorded in the period when reasonable assurance exists that the Company has complied with the terms and conditions required for approval of the tax credit and it is more likely than not that the Company will collect it. Stock-based Compensation The Company uses the fair value based method of accounting for all its stock-based compensation in accordance with FASB Accounting Standards Codification ("ASC") ASC 718 Compensation Stock Compensation. The estimated fair value of the options and warrants that are ultimately expected to vest based on performance related conditions, as well as the options and warrants that are expected to vest based on future service, is recorded over the instruments requisite service period and charged to stock-based compensation. In determining the amount of options and warrants that are expected to vest, the Company takes into account, voluntary termination behavior as well as trends of actual option and warrant forfeitures. Stock options and warrants which are indexed to a factor which is not a market, performance or service condition, in addition to the Companys share price, are classified as liabilities and re-measured at each reporting date based on the Black-Scholes option pricing model with a charge to operations, until the date of settlement. Income Taxes Income taxes are accounted for under the liability method of accounting for income taxes. Under the liability method, deferred tax liabilities and assets are recognized for the estimated future tax consequences attributable to differences between the amounts reported in the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted income tax rates expected to apply when the asset is realized or the liability is settled. The effect of a change in income tax rates on deferred tax liabilities and assets is recognized in income in the period in which the change occurs. Deferred tax assets are recognized to the extent that they are considered more likely than not to be realized. FASB issued ASC 740-10 Accounting for Uncertainty in Income Taxes. ASC 740-10 clarifies the accounting for uncertainty in income taxes recognized in an enterprises financial statements in accordance with prior literature FASB Statement No. 109, Accounting for Income Taxes. This standard requires a company to determine whether it is more likely than not that a tax position will be sustained upon examination based upon the technical merits of the position. If the more-likely-than-not threshold is met, a company must measure the tax position to determine the amount to recognize in the financial statements. The implementation of this standard had no impact on the Companys financial statements. Fair Value of Financial Instruments ASC 820 Fair Value Measurement defines fair value, establishes a framework for measuring fair value under generally accepted accounting principles and enhances disclosures about fair value measurements. Fair value is defined under ASC 820 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 on the measurement date. Valuation techniques used to measure fair value under ASC 820 must maximize the use of observable inputs and minimize the use of unobservable inputs. The standard describes a fair value hierarchy based on three levels of inputs, of which the first two are considered observable and the last unobservable, that may be used to measure fair value as follows: Level 1 unadjusted quoted prices in active markets for identical assets or liabilities; Level 2 inputs other than quoted prices that are observable for the asset or liability or indirectly; and Level 3 inputs that are not based on observable market data. The carrying amounts of the Companys financial instruments including cash, amounts receivable, accounts payable and accrued liabilities and advances from shareholders approximate their fair values due to their short-term nature. Management is of the opinion that the Company is not exposed to significant interest, credit or currency risks from these financial instruments. The Companys equity-linked financial instruments reflected as warrant liability on the balance sheet represent financial liabilities classified as Level 3 as per ASU 2009-05. As required by the guidance, assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. The fair value of the warrant liability which is not traded in an active market has been determined using the Black-Scholes option pricing model based on assumptions that are not supported by observable market conditions. Loss per Share Basic loss per share is calculated by dividing the net loss available to common shareholders by the weighted average number of common shares outstanding during the year. Diluted loss per share is calculated using the treasury stock method and reflects the potential dilution of securities by including warrants and contingently issuable shares, if any, in the weighted average number of common shares outstanding for a year, if dilutive. In a loss year, dilutive common shares are excluded from the loss per share calculation as the effect would be anti-dilutive. Accordingly, for the years ended March 31, 2015 and 2014, the basic loss per share was equal to diluted loss per share as there were no dilutive securities. Comprehensive Income (Loss) ASC 220 Comprehensive Income establishes standards for reporting and display of comprehensive income, its components and accumulated balances. The net loss is equivalent to the comprehensive loss for the periods presented. New Accounting Pronouncements In July 2013, the FASB issued ASU No. 2013-11 Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists. The objective of ASU No. 2013-11 is to provide guidance on the financial statement presentation of an unrecognized tax benefit when a net loss carryforward, similar tax loss, or tax credit carryforward exists. The amendments in this standard are effective prospectively for interim and annual reporting periods beginning after December 15, 2013. The adoption of ASU No. 2013-11 did not have a material impact on the Companys Financial position or results of operations. Other accounting standards that have been issued or proposed by the FASB or other standards-setting bodies that do not require adoption until a future date are not expected to have a material impact on the Companys financial statements upon adoption. |
3. Equipment and Leasehold Impr
3. Equipment and Leasehold Improvements | 6 Months Ended | 12 Months Ended |
Sep. 30, 2015 | Mar. 31, 2015 | |
Property, Plant and Equipment [Abstract] | ||
3. Equipment and Leasehold Improvements | September 30, 2015 March 31, 2015 Cost Accumulated Amortization Cost Accumulated Amortization Computer equipment $ 3,558 $ 1,774 $ 3,558 $ 1,459 Production equipment 67,367 22,784 67,367 17,831 Leasehold improvements 33,649 11,393 33,649 7,784 Total $ 104,574 $ 35,951 $ 104,574 $ 27,074 Net carrying amount $ 68,623 $ 77,500 During the six month periods ended September 30, 2015, the Company recorded total amortization of $8,878 (2014 - $8,676) which was recorded to amortization expense on the statements of operations. | March 31, 2015 March 31, 2014 Cost Accumulated Amortization Cost Accumulated Amortization Computer equipment $ 3,558 $ 1,459 $ 1,865 $ 560 Production equipment 67,367 17,831 27,236 5,447 Leasehold improvements 33,649 7,784 10,954 730 Total $ 104,574 $ 27,074 $ 40,055 $ 6,737 Net carrying amount $ 77,500 $ 33,318 During the year ended March 31, 2015, the Company recorded total amortization of $20,338 (2014 - $6,737) which was recorded to amortization expense on the statements of operations. |
4. Intangible Assets
4. Intangible Assets | 6 Months Ended | 12 Months Ended |
Sep. 30, 2015 | Mar. 31, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
4. Intangible Assets | The Company has patents and patents pending with a cost of $15,970 as at September 30, 2015 (March 31, 2015 - $15,970) that are not currently being amortized and accordingly, the Company did not record amortization expense relating to its intangible assets for the six month periods ended September 30, 2015 and 2014. | The Company has patents and patents pending with a cost of $15,970 as at March 31, 2015 (2014 - $7,141) that are not currently being amortized and accordingly, the Company did not record amortization expense relating to its intangible assets for the years ended March 31, 2015 and 2014. |
5. Advances from Shareholders
5. Advances from Shareholders | 6 Months Ended | 12 Months Ended |
Sep. 30, 2015 | Mar. 31, 2015 | |
Advances From Shareholders | ||
5. Advances from Shareholders | As at September 30, 2015, the Company had received cumulative working capital advances in the amount of $380,670 (March 31, 2015 - $367,267) from two shareholders who are also officers and directors of the Company. These advances are unsecured, non-interest bearing and payable upon demand. | As at March 31, 2015, the Company had received cumulative working capital advances in the amount of $367,267 (2014 - $431,406) from two shareholders who are also officers and directors of the Company. These advances are unsecured, non-interest bearing and payable upon demand. |
6. Term Loan
6. Term Loan | 6 Months Ended |
Sep. 30, 2015 | |
Debt Disclosure [Abstract] | |
6. Term Loan | On May 6, 2015, the Company agreed to a one year term loan (maturing May 5, 2016). The loan bears interest at 12% per annum paid quarterly. The loan is secured by 40,000 common shares of the Company personally held and equally pledged by two of the founding shareholders. The face value of the loan is $33,000. The carrying value of the loan was recorded net of $3,000 of transaction costs. The resulting fair value is accreted to face value through the recording of accretion expense until maturity using the effective interest rate of 21%. |
7. Convertible Note
7. Convertible Note | 6 Months Ended |
Sep. 30, 2015 | |
Payables and Accruals [Abstract] | |
7. Convertible Note | On September 2, 2015, the Company entered into a convertible note with a principal amount of USD$25,000 ($32,288). The convertible note matures on September 1, 2016 and accrues interest at the rate of 12% per annum. The convertible note is convertible at any time after six months, in whole or in part, at the Holders option into common shares of the Companys capital stock at a variable conversion price equal to a 45% discount from the lowest trading price in the twenty (20) trading days prior to the day that the holders requests conversion. The beneficial conversion feature was recognized separately at issuance by allocating a portion of the proceeds equal to the intrinsic value of that feature to additional paid-in capital in accordance with ASC 470-20. The intrinsic value at issuance was $27,227. The issuance of convertible debt with a beneficial conversion feature results in a tax basis difference. The recognition of deferred taxes for the temporary difference of the convertible debt with a beneficial conversion feature is recorded as an adjustment to additional paid-in capital. A deferred income tax liability of $7,215 was recognized upon the issuance of the convertible note. The discount to the carrying value for the convertible note is being amortized as a non-cash interest expense over the term of the convertible note using the effective interest rate method, at a rate of 93%. During the three and six months periods ended September 30, 2015, the Company accreted $2,076 and $2,076, respectively (2014 - $Nil and $Nil, respectively) in non-cash accretion expense in connection with the convertible note, which is included in accretion expense on the condensed interim statements of operations and comprehensive loss. |
8. Capital Stock
8. Capital Stock | 6 Months Ended | 12 Months Ended |
Sep. 30, 2015 | Mar. 31, 2015 | |
Equity [Abstract] | ||
8. Capital Stock | (a) Common Shares Authorized The Company is authorized to issue an unlimited number of common shares with no par value. Issued and Outstanding On June 25, 2015, 12,500 common shares purchase warrants were exercised at USD$0.04 ($0.048) per warrant for total cash proceeds of USD$500 ($596). Equity Purchase Agreement On September 10, 2015 the Company entered into an equity purchase agreement (the EPA). The holder of the EPA is committed to purchase up to USD$750,000 worth of the Companys common shares (the Put Shares) over the 12 month term of the EPA. The Company paid to the holder of the EPA a commitment fee for entering into the EPA equal to 50,000 restricted common shares of the Company, valued at $67,195, based on the stock price in the most recent private placement. From time to time over the EPA, commencing on the trading day immediately following the date on which the registration statement covering the resale of the Put Shares (the Registration Statement) is declared effective by the Securities and Exchange Commission (the Commission), the Company may, in its sole discretion, draw upon the EPA periodically during the term by the Companys delivery to the holder of the EPA a written notice requiring the holder to purchase a dollar amount in common shares (the Draw Down Notice). The shares issuable pursuant to a Draw Down Notice, when aggregated with the shares then held by the Holder on the date of the draw Down may not exceed the lessor of (i) 4.99% of the Companys outstanding common shares, (ii) USD$62,500 in any 30 days period or (iii) 100% of the aggregate trading volume for the 10 trading days immediately preceding the date of the Draw down Notice without the prior written consent of the holder. The purchase price per common share purchased under the EPA shall equal 65% of the lowest closing bid for the 10 days immediately preceding the date of the Draw down Notice. The Registration Statement was filed with the Commission on October 1, 2015 and to-date it has not been declared effective by the Commission. (b) Warrants Expiry Date Number of Warrants Grant Date Average Exercise Price Weighted Average Exercise Equity Grant Date Fair Value Equity Fair Value at September 30, 2015 of Vested Warrents - Liability June 6, 2016 300,383 300,383 $ 2.24 * $ 170,908 $ - June 7, 2016 5,000 5,000 $ 1.12 3,180 - June 6, 2017 22,500 22,500 $ 1.12 16,110 - April 1, 2017 587,500 262,500 USD $0.04 - 340,462 $ (0.054 ) October 22, 2016 3,350 3,350 USD $1.50 - 1,990 $ (2.01 ) November 30, 2016 8,850 8,850 USD $2.00 - 6,213 $ (2.68 ) 927,583 $ 602,583 0.83 $ 190,198 $ 348,665 *Exercisable at $1.68 during the first year and at $2.24 during the second year. i) In connection with a consulting agreement (see Note 10), the Company granted 625,000 common share purchase warrants with each warrant entitling the grantee to acquire one common share in the capital of the Company at an exercise price of USD$0.04 ($0.054) at any time prior to April 1, 2017. Of the warrants granted, 300,000 vested on September 3, 2014 with the unvested portion vesting pro-rata for each USD$250,000 ($334,850) raised in an offering, fully vesting upon USD$1,500,000 ($2,009,100) being raised. The fair value of the 625,000 warrants at the date of grant of $500,000 was estimated using the Black-Scholes option pricing model, based on the following assumptions: expected dividend yield of 0%; expected volatility of 159%; risk free interest rate of 1.25%; and expected term of 3 years. For the three and six month periods ended September 30, 2015, the Company recorded $Nil and $Nil, respectively, (2014 - $98,119 and $237,300, respectively) as compensation expense for warrants issued to a consultant for service, net of a market adjustment for the three and six month periods ended September 30, 2015 of $Nil and $Nil, respectively (2014 - $2,526 and $2,700, respectively). This expense was recorded as professional fees on the statements of operations and comprehensive loss. ASC 815 "Derivatives and Hedging" indicates that warrants with exercise prices denominated in a currency other than an entity's functional currency should not be classified as equity. As a result, warrants with a USD exercise price have been treated as derivatives and recorded as liabilities carried at their fair value, with period-to-period changes in the fair value recorded as a gain or loss in the statements of operations and comprehensive loss. As at September 30, 2015, the fair value of the 599,700 warrants exercisable in USD, was $770,191 which was estimated using the Black-Scholes option pricing model based on the following weighted average assumptions: expected dividend yield of 0%; expected volatility of 140%; risk-free interest rate of 0.62% and expected term of 1.49 years. Of this amount, $348,665 was reflected as a liability as at September 30, 2015, representing the percentage of the fair value of the warrants that is equal to the percentage of the requisite service that has been rendered at September 30, 2015. The warrant liability is classified as Level 3 within the fair value hierarchy (See Note 12). The Companys computation of expected volatility during the period ended September 30, 2015 is based on the market close price of comparable public entities over the period equal to the expected life of the warrants. The Companys computation of expected life is calculated using the contractual life. (c) Stock-based compensation The Companys stock-based compensation program (the "Plan") includes stock options in which some options vest based on continuous service. For those equity awards that vest based on continuous service, compensation expense is recorded over the service period from the date of grant. The total number of options outstanding as at September 30, 2015 was 505,000 (March 31, 2015 505,000). The weighted average grant date fair value of options granted during the period ended September 30, 2015 was $n/a (2014 - $Nil). The maximum number of options that may be issued under the Plan is floating at an amount equivalent to 15% of the issued and outstanding common shares, or 1,397,836 as at September 30, 2015 (March 31, 2015 1,388,461). The Companys computation of expected volatility during the period ended September 30, 2015 is based on the market close price of comparable public entities over the period equal to the expected life of the warrants. The Companys computation of expected life is calculated using the contractual life. For the three and six month periods ended September 30, 2015, the Company recorded $112,976 and $188,026, respectively (2014 - $nil and $nil, respectively) as Additional Paid in Capital for options issued to directors, officers and consultants based on continuous service. This expense was recorded as stock based compensation on the statements of operations and comprehensive loss. The activities in options outstanding are as noted below: Number of Options Granted Weighted Average Exercise Price Balance, March 31, 2015 505,000 $ 1.73 Granted - - Balance, September 30, 2015 505,000 $ 1.73 The following table presents information relating to stock options outstanding and exercisable at September 30, 2015. Options Outstanding Options Exercisable Exercise Price Number of Shares Weighted Average Remaining Contractual Life (Years) Number of Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Life (Years) $ 1.73 505,000 4.2 291,667 $ 1.73 4.2 | (a) Common Shares Authorized The Company is authorized to issue an unlimited number of common shares with no par value. Issued and Outstanding On June 6, 2014, the Company closed a private placement for gross proceeds of $647,860 of which $328,180 was received as at March 31, 2014 and reflected as equity to be issued. Pursuant to the private placement, the Company issued 556,118 units at $1.12 per unit for gross proceeds of $622,860 and 44,642 units at $0.56 per unit for gross proceeds of $25,000, with each unit comprised of one common share and one-half of one (1/2) common share purchase warrant. Each whole warrant is exercisable at $1.68 per share within the first twelve months of the close of the private placement and $2.24 per share for the second twelve month period to expiration. Immediate family members of management subscribed for 57,000 units for gross proceeds of $63,840 pursuant to this private placement. On October 22, 2014, a consultant was issued 6,700 units in settlement of a debt owed in the amount of USD$10,050 ($11,256), each unit comprised of one common share and one-half of one (1/2) common share purchase warrant. Each whole warrant is exercisable at USD$1.50 ($1.90) per share within twenty-four months of the date of issuance. On November 24, 2014, the Company closed a further private placement for gross proceeds of $30,000. Pursuant to the private placement, the Company issued 17,700 units at USD$1.50 ($1.695) per unit for gross proceeds of $30,000, each unit comprising one common share and one-half of one (1/2) common share purchase warrant. Each whole warrant is exercisable at USD$2.00 ($2.54) per share until November 30, 2016. Additionally, on November 22, 2014, 25,000 common share purchase warrants were exercised at USD$0.04 ($0.046) per warrant for total cash proceeds of USD$1,000 ($1,113). (b) Warrants As at March 31, 2015, the following warrants were outstanding: Expiry Date Number of Warrants Number of Warrants Exercisable Weighted Average Exercise Price Grant Date Fair Value Equity Fair Value at March 31, 2015 of Vested Warrants - Liability June 6, 2016 300,383 300,383 $ 1.68 * $ 170,908 $ - June 7, 2016 5,000 5,000 $ 1.12 3,180 - June 6, 2017 22,500 22,500 $ 1.12 16,110 - April 1, 2017 600,000 275,000 USD $0.04 - 356,675 $ (0.051 ) October 22, 2016 3,350 3,350 USD $1.50 - 1,990 $ (1.90 ) November 30, 2016 8,850 8,850 USD $2.00 - 6,213 $ (2.54 ) 940,083 615,083 $ 0.63 $ 190,198 $ 364,878 *Exercisable at $1.68 during the first year and at $2.24 during the second year. i) In connection with a private placement offering completed during the year ended March 31, 2015, the Company granted an aggregate of 300,383 share purchase warrants each exercisable into one common share at $1.68 during the first year and at $2.24 during the second year. The fair value of the warrants at the date of grant of $171,308 was estimated using the Black-Scholes option pricing model, based on the following weighted average assumptions: expected dividend yield of 0%; expected volatility of 173%; risk free interest rate of 1.06%; and expected term of 2 years. ii) In connection with a second private placement offering completed during the year ended March 31, 2015, the Company granted an aggregate of 8,850 share purchase warrants each exercisable into one common share at USD$2.00 ($2.54) until November 30, 2016. The fair value of the warrants at the date of grant of $6,213 was estimated using the Black-Scholes option pricing model, based on the following weighted average assumptions: expected dividend yield of 0%; expected volatility of 124%; risk free interest rate of 1.02%; and expected term of 2 years. iii) During the year ended March 31, 2015, the Company also issued 27,500 warrants to consultants of the Company valued at $19,290 of which 22,500 warrants were granted to an officer of the Company for consulting services. The compensation expense has been included in professional fees on the statements of operations. Each warrant entitles the holder to purchase one common share at an exercise price of $1.12 for a period ranging from 2.15 to 3 years after the date of issuance. The fair value of the warrants at the date of grant of $19,290 was estimated using the Black-Scholes option pricing model, based on the following weighted average assumptions: expected dividend yield of 0%; risk free interest rate of 1.14%; expected volatility of 182%; and expected term of 2.85 years. iv) In connection with a consulting agreement (see Note 9), the Company granted 625,000 common share purchase warrants with each warrant entitling the grantee to acquire one common share in the capital of the Company at an exercise price of USD$0.04 ($0.051) at any time prior to April 1, 2017. Of the warrants granted, 300,000 vested on September 3, 2014 with the unvested portion vesting pro-rata for each USD$250,000 ($317,075) raised in an offering, fully vesting upon USD$1,500,000 ($1,902,450) being raised. The fair value of the 625,000 warrants at the date of grant of $500,000 was estimated using the Black-Scholes option pricing model, based on the following assumptions: expected dividend yield of 0%; expected volatility of 159%; risk free interest rate of 1.25%; and expected term of 3 years. For the year ended March 31, 2015, the Company recorded $240,000, (2014 - $Nil ) as compensation expense for warrants issued to a consultant for service, plus a market adjustment for the year ended March 31, 2015 of $149,350 (2014 - $Nil). This expense was recorded as professional fees on the statements of operations and comprehensive loss. The Company also recorded $2,060 as the grant date fair value of warrants issued in settlement of debt and $6,213 as the grant date fair value of warrants issued as part of an issuance of units, net of a market adjustment for the year ended March 31, 2015 of $70. This was recorded to professional fees on the statements of operations and comprehensive loss. v) In connection with the unit issuance completed October 22, 2014 in settlement of debt, the Company granted 3,350 share purchase warrants exercisable into one common share at USD$1.50 ($1.90) per share for a period of 2 years from the date of issuance. The fair value of the warrants at the date of grant of $2,060 was estimated using the Black-Scholes option pricing model, based on the following assumptions: expected dividend yield of 0%; expected volatility of 123%; risk free interest rate of 0.99%; and expected term of 2 years. ASC 815 "Derivatives and Hedging" indicates that warrants with exercise prices denominated in a currency other than an entity's functional currency should not be classified as equity. As a result, warrants with a USD exercise price have been treated as derivatives and recorded as liabilities carried at their fair value, with period-to-period changes in the fair value recorded as a gain or loss in the statements of operations and comprehensive loss. As at March 31, 2015, the fair value of the 612,200 warrants exercisable in USD, remaining after the exercise of 25,000 warrants, was $786,403 which was estimated using the Black-Scholes option pricing model based on the following weighted average assumptions: expected dividend yield of 0%; expected volatility of 118%; risk-free interest rate of 0.52% and expected term of 2 years. Of this amount, $364,878 was reflected as a liability as at March 31, 2015, representing the percentage of the fair value of the warrants that is equal to the percentage of the requisite service that has been rendered at March 31, 2015. The warrant liability is classified as Level 3 within the fair value hierarchy (See Note 11). The Companys computation of expected volatility during the year ended March 31, 2015 is based on the market close price of comparable public entities over the period equal to the expected life of the warrants. The Companys computation of expected life is calculated using the contractual life. (c) Stock-based compensation The Companys stock-based compensation program (the "Plan") includes stock options in which some options vest based on continuous service. For those equity awards that vest based on continuous service, compensation expense is recorded over the service period from the date of grant During the year ended March 31, 2015, 505,000 options were granted to officers, employees and consultants of the Company (2014 - $Nil). The exercise price of these options is $1.73. Of this grant, 420,000 options vest as to one-third on the date of grant and one-third vesting on each of the first anniversary and the second anniversary of the grant date; 60,000 options vest as to one quarter on the date of grant and one quarter vesting at 90 days, 180 days and 270 days from the grant date; and 25,000 options vested immediately. Since stock-based compensation is recognized only for those awards that are ultimately expected to vest, the Company has applied an estimated forfeiture rate (based on historical experience and projected employee turnover) to unvested awards for the purpose of calculating compensation expense. The grant date fair value of these options was estimated as $1.18 using the Black-Scholes option pricing model, based on the following assumptions: expected dividend yield of 0%; expected volatility of 144%; expected risk free interest rate of 1.39%; and expected term of 5 years. The total number of options outstanding as at March 31, 2015 was 505,000 (2014 nil). The weighted average grant date fair value of options granted during the year ended March 31, 2015 was $1.18 (2014 - $Nil). The maximum number of options that may be issued under the Plan is floating at an amount equivalent to 15% of the issued and outstanding common shares, or 1,388,461 as at March 31, 2015 (2014 n/a). The Companys computation of expected volatility during the year ended March 31, 2015 is based on the market close price of comparable public entities over the period equal to the expected life of the warrants. The Companys computation of expected life is calculated using the contractual life. For the year ended March 31, 2015, the Company recorded $324,916 (2014 - $nil) as Additional Paid in Capital for options issued to directors, officers and consultants based on continuous service. This expense was recorded as stock based compensation on the statements of operations and comprehensive loss. (c) Stock-based compensation The activities in options outstanding are as noted below: Number of Options Granted Weighted Average Exercise Price Balance, March 31, 2013 and 2014 - - Granted 505,000 1.73 Balance, March 31, 2015 505,000 $ 1.73 The following table presents information relating to stock options outstanding and exercisable at March 31, 2015. Options Outstanding Options Exercisable Exercise Price Number of Shares Weighted Average Remaining Contractual Life (Years) Number of Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Life (Years) $ 1.73 505,000 4.70 195,000 $ 1.73 4.70 |
9. Income Taxes
9. Income Taxes | 6 Months Ended | 12 Months Ended |
Sep. 30, 2015 | Mar. 31, 2015 | |
Income Tax Disclosure [Abstract] | ||
9. Income Taxes | The Company has no taxable income under Canadian Federal and Provincial tax laws for the six month periods ended September 30, 2015 and 2014. The Company has non-capital loss carryforwards at September 30, 2015 totalling approximately $1,009,000, which may be offset against future taxable income. If not used, the loss carryforwards will expire between 2029 and 2036. | The following table reconciles the income tax benefit at the Canadian statutory rate to income tax benefit at the Companys effective tax rates. 2015 2014 Loss before income taxes $ (1,087,289 ) $ (232,956 ) Statutory tax rate 26.5 % 26.5 % Expected income tax (recovery) $ (288,000 ) $ (62,000 ) Non-deductible items 197,000 1,000 Change in valuation allowance 91,000 61,000 Total income taxes (recovery) $ - $ - Deferred taxes reflect the tax effects of temporary differences between the carrying amounts of assets and liabilities and their respective tax bases for financial reporting purposes. Deferred tax assets as at March 31, 2015 and 2014 are comprised of the following: 2015 2014 Net operating loss carry forwards $ 242,000 $ 187,000 Equipment and leasehold improvements 30,000 - Valuation allowance (272,000 ) (187,000 ) Net deferred tax asset $ - $ - The Company has net operating loss carry forwards of approximately $913,000 (2014 - $706,000) which may be carried forward to apply against future year income for Canadian income tax purposes, subject to final determination by taxing authorities, expiring in the following years: Expiry 2029 $ 65,000 2030 83,000 2031 28,000 2032 81,000 2033 91,000 2034 242,000 2035 323,000 Total $ 913,000 The deferred tax assets have not been recognized because at this stage of the Companys development, it is not determined that future taxable profits will be available against which the Company can utilize such deferred tax assets. Tax years 2009 through 2015 remain open to examination by the taxing jurisdictions to which the Company is subject. The Company has not been notified by any taxing jurisdictions of any proposed or planned examination. The Company has non-refundable tax credits as at March 31, 2015 of $5,449 (2014 - $5,449) which expire in the year 2031. |
10. Commitments and Contingenci
10. Commitments and Contingencies | 6 Months Ended | 12 Months Ended |
Sep. 30, 2015 | Mar. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | ||
10. Commitments and Contingencies | The Company entered into a five (5) year operating lease for office and production facilities. The lease commenced on December 1, 2013 and expires on November 30, 2018. The base monthly rental is $1,362 plus the Companys estimated portion of property taxes and operating expenses which are currently $804 per month. The future commitments pursuant to this lease arrangement, including property taxes and operating expenses for the fiscal periods ending March 31 are: 2016 (remaining) $ 12,997 2017 25,994 2018 26,328 2019 17,552 For the year three and six month periods ended September 30, 2015, rental expenses related to this lease were $6,498 and $12,999 (2014 $6,433 and $12,866). On March 11, 2014, and as amended on July 18, September 3, 2014 and again on September 5, 2014, the Company entered into a consulting agreement with Connectus, Inc. to assist and advise the Company in matters concerning corporate finance and the Companys current and proposed financing activities for the period commencing April 1, 2014 and ending December 31, 2014. The Company and Connectus, Inc. intend to extend the contract until all efforts to complete the capital raise have been completed. Pursuant to this agreement, the Company agreed to issue to this consulting corporation (the Consultant), 625,000 warrants of the Company. Each warrant is exercisable at USD$0.04 ($0.054) per share for a period of three years. Of the warrants granted, 300,000 vested on September 3, 2014 with the unvested portion vesting pro-rata for each USD$250,000 ($334,850) raised in an offering, fully vesting upon USD$1,500,000 ($2,009,100) being raised. On November 21, 2014, 25,000 of the vested warrants were exercised. On June 25, 2015, 12,500 of the vested warrants were exercised. During the year ended March 31, 2015, the President of the Consultant became a director of the Company. On April 23, 2014, the Company entered into employment agreements with three officers of the Company effective July 1, 2014. The initial contracts contain minimum aggregate commitments of approximately $427,000 per year for three years and additional contingent payments of up to approximately $600,000 in aggregate upon the occurrence of a change of control. As a triggering event has not taken place, the contingent payments have not been reflected in these financial statements. If employment is terminated by the Company other than upon a change of control or for just cause, the officers will be entitled to an amount equal to twelve months compensation including benefits, which shall be increased by one month for each full year of service completed. The employment agreements were amended whereby any salary from the commencement of the employment agreements has been waived until such a time when the Company is able to raise additional financing. Salaries will be earned based upon the Companys success in raising future capital in accordance with the following schedule: Cumulative Funds Raised1 Effective Monthly Salary % $ 100,000 10.0 % $ 175,000 15.0 % $ 250,000 25.0 % $ 375,000 37.5 % $ 500,000 50.0 % $ 750,000 62.5 % $ 1,000,000 75.0 % $ 1,250,000 87.5 % $ 1,500,000 100.0 % 1 Cumulative funds raised is inclusive of all sources including without limitation capital raised, grants received, revenue recorded, debt raised, and assets sold. | The Company entered into a five (5) year operating lease for office and production facilities. The lease commenced on December 1, 2013 and expires on November 30, 2018. The base monthly rental is $1,362 plus the Companys estimated portion of property taxes and operating expenses which are currently $804 per month. The future commitments pursuant to this lease arrangement, including property taxes and operating expenses for the fiscal periods ending March 31 are: 2016 $ 25,732 2017 25,732 2018 26,064 2019 17,376 For the year ended March 31, 2015, rental expenses related to this lease were $25,732 (2014 $6,427). On March 11, 2014, and as amended on July 18, September 3, 2014 and again on September 5, 2014, the Company entered into a consulting agreement with Connectus, Inc. to assist and advise the Company in matters concerning corporate finance and the Companys current and proposed financing activities for the period commencing April 1, 2014 and ending December 31, 2014. The Company and Connectus, Inc. intend to extend the contract until all efforts to complete the capital raise have been completed. Pursuant to this agreement, the Company agreed to issue to this consulting corporation (the Consultant), 625,000 warrants of the Company. Each warrant is exercisable at USD$0.04 ($0.051) per share for a period of three years. Of the warrants granted, 300,000 vested on September 3, 2014 with the unvested portion vesting pro-rata for each USD$250,000 ($317,075) raised in an offering, fully vesting upon USD$1,500,000 ($1,902,450) being raised. On November 21, 2014, 25,000 of the vested warrants were exercised. During the year ended March 31, 2015, the President of the Consultant became a director of the Company. On April 23, 2014, the Company entered into employment agreements with three officers of the Company effective July 1, 2014. The initial contracts contain minimum aggregate commitments of approximately $427,000 per year for three years and additional contingent payments of up to approximately $600,000 in aggregate upon the occurrence of a change of control. As a triggering event has not taken place, the contingent payments have not been reflected in these financial statements. If employment is terminated by the Company other than upon a change of control or for just cause, the officers will be entitled to an amount equal to twelve months compensation including benefits, which shall be increased by one month for each full year of service completed. The employment agreements were amended whereby any salary from the commencement of the employment agreements has been waived until such a time when the Company is able to raise additional financing. Salaries will be earned based upon the Companys success in raising future capital in accordance with the following schedule: Cumulative Funds Raised1 Effective Monthly Salary % $ 100,000 10.0 % $ 175,000 15.0 % $ 250,000 25.0 % $ 375,000 37.5 % $ 500,000 50.0 % $ 750,000 62.5 % $ 1,000,000 75.0 % $ 1,250,000 87.5 % $ 1,500,000 100.0 % 1 Cumulative funds raised is inclusive of all sources including without limitation capital raised, grants received, revenue recorded, debt raised, and assets sold. |
11. Related Party Transactions
11. Related Party Transactions | 6 Months Ended | 12 Months Ended |
Sep. 30, 2015 | Mar. 31, 2015 | |
Related Party Transactions [Abstract] | ||
11. Related Party Transactions | Included in accounts payable and accrued liabilities as at September 30, 2015 is $52,030 (March 31, 2015 - $52,030) owing to two directors who are also officers and significant shareholders of the Company for unpaid management fees. This balance is unsecured, non-interest bearing and due on demand. Amounts receivable from shareholder as at September 30, 2015 of $30,902 (March 31, 2015 - $29,967) is owing from a shareholder, who is also a director and officer of the Company for funds advanced under the employment agreement (See Note 10). The amount receivable is unsecured, non-interest bearing and repayable upon demand. | Included in accounts payable and accrued liabilities as at March 31, 2015 is $52,030 (2014 - $64,030) owing to two directors who are also officers and significant shareholders of the Company for unpaid management fees. This balance is unsecured, non-interest bearing and due on demand. Amounts receivable from shareholder as at March 31, 2015 of $29,967 (2014 - $Nil) is owing from a shareholder, who is also a director and officer of the Company for funds advanced under the employment agreement (See Note 9). The amount receivable is unsecured, non-interest bearing and repayable upon demand. Management fees and consulting fees in the amount of $363,750 were waived by the officers of the Company during the year ended March 31, 2015. See also Notes 6, 7a, 7c and 9. |
12. Financial Instruments
12. Financial Instruments | 6 Months Ended | 12 Months Ended |
Sep. 30, 2015 | Mar. 31, 2015 | |
Investments, All Other Investments [Abstract] | ||
12. Financial Instruments | (a) Liquidity risk Liquidity risk is the risk that the Company will not have sufficient cash resources to meet its financial obligations as they come due. The Companys liquidity and operating results may be adversely affected if its access to the capital market is hindered, whether as a result of a downturn in stock market conditions generally or matters specific to the Company. The Company generates cash flow primarily from its financing activities and advances from shareholders. As at September 30, 2015, the Company had cash of $3,598 (March 31, 2015 - $3,084) to settle current liabilities of $968,147 (March 31, 2015 - $894,022). All of the Company's financial liabilities other than the warrant liability of $348,665, the Term Loan of 30,000 and the Convertible Note of USD$25,000 ($33,485) have contractual maturities of less than 30 days and are subject to normal trade terms. The Company regularly evaluates its cash position to ensure preservation and security of capital as well as liquidity. In the normal course of business, management considers various alternatives to ensure that the Company can meet some of its operating cash flow requirements through financing activities, such as private placements of common stock, preferred stock offerings and offerings of debt and convertible debt instruments as well as through merger or acquisition opportunities. Management may also consider strategic alternatives, including strategic investments and divestitures. As future operations may be financed out of funds generated from financing activities, the ability to do so is dependent on, among other factors, the overall state of capital markets and investor appetite for investments in the green technology industry and the Companys securities in particular. Should the Company elect to satisfy its cash commitments through the issuance of securities, by way of either private placement or public offering or otherwise, there can be no assurance that the efforts to obtain such additional funding will be successful, or achieved on terms favorable to the Company or its existing shareholders. If adequate funds are not available on favorable terms, the Company may have to reduce substantially or eliminate expenditures or obtain funds through other sources such as divestiture or monetization of certain assets or sublicensing (where permitted) of certain rights to certain of the Companys technologies or products. (b) Concentration of credit risk Financial instruments that potentially subject the Company to concentrations of credit risk consist principally of cash deposits. Cash deposits with a major Canadian chartered bank are insured by the Canadian Deposit Insurance Corporation up to $100,000. As at September 30, 2015, the Company held $3,598 (March 31, 2015 - $3,084) with a major Canadian chartered bank. (c) Foreign exchange risk The Company principally operates within Canada. The Companys functional currency is the Canadian dollar and major purchases are transacted in Canadian dollars. Management believes the foreign exchange risk derived from currency conversions is negligible and therefore does not hedge its foreign exchange risk. See also Note 12 (e). (d) Interest rate risk The Company does not have any non-fixed interest-bearing debt. The Company invests any cash surplus to its operational needs in investment-grade short-term deposit certificates issued by highly rated Canadian banks. The Company periodically assesses the quality of its investments and is satisfied with the credit rating of the bank. (e) Derivative liability warrant liability In connection with a consulting agreement, the Company granted warrants to purchase up to 625,000 common shares of the Company as disclosed in Note 8(b). The warrants have an exercise price of USD$0.04 ($0.054). The warrants are exercisable at any time prior to April 1, 2017. The warrants are accounted for as derivative liabilities because the exercise price is denominated in a currency other than the Companys functional currency. In connection with the settlement of a vendors account, the Company granted warrants to purchase up to 3,350 common shares of the Company. The warrants have an exercise price of USD$1.50 ($2.04). The warrants are exercisable at any time prior to October 22, 2016. The warrants are accounted for as derivative liabilities because the exercise price is denominated in a currency other than the Companys functional currency. In connection with a private placement, the Company granted warrants to purchase up to 8,850 common shares of the Company. The warrants have an exercise price of USD$2.00 ($2.68). The warrants are exercisable at any time prior to November 30, 2016. The warrants are accounted for as derivative liabilities because the exercise price is denominated in a currency other that the Companys functional currency. The table below summarizes the fair value of the Companys financial liabilities measured at fair value: Fair Value at September 30, Fair Value Measurement Using 2015 Level 1 Level 2 Level 3 Derivative liability Warrants $ 348,665 $ - $ - $ 348,665 The table below sets forth a summary of changes in the fair value of the Companys Level 3 financial liabilities (warrant derivative liability) for the periods ended September 30, 2015 and March 31, 2015: September 30, 2015 March 31, 2015 Balance at beginning of period $ 364,878 $ - Additions to derivative instruments, recognized in earnings as professional fees - 240,000 Additions to derivative instruments as a result of issuance in settlement of debt - 2,060 Additions to derivative instrumentsas a result of issuance of units - 6,213 Derivative instruments exercised (16,213 ) (32,675 ) Change in fair market value, recognized in operations as professional fees - 149,280 Balance at end of period $ 348,665 $ 364,878 These instruments were valued using pricing models that incorporate the price of a share of common stock (based upon the price of the most recent private placement), expected volatility, risk free rate, expected dividend rate and expected estimated life. The Company estimated the value of the warrants using the Black-Scholes model. There were no transfers of assets or liabilities between Level 1, Level 2, or Level 3 during the periods ended September 30, 2015 and March 31, 2015. The following are the key weighted average assumptions used in connection with the estimation of fair value as at September 30, 2015: September 30, 2015 Number of shares underlying the warrants 599,700 Fair market value of the stock $ 1.34 Exercise price USD$0.076 ($0.1032) Expected volatility 140 % Risk-free interest rate 0.62 % Expected dividend yield 0 % Expected warrant life (years) 1.49 | (a) Liquidity risk Liquidity risk is the risk that the Company will not have sufficient cash resources to meet its financial obligations as they come due. The Companys liquidity and operating results may be adversely affected if its access to the capital market is hindered, whether as a result of a downturn in stock market conditions generally or matters specific to the Company. The Company generates cash flow primarily from its financing activities and advances from shareholders. As at March 31, 2015, the Company had cash of $3,084 (2014 - $64,674) to settle current liabilities of $894,022 (2014 - $518,936). All of the Company's financial liabilities other than the warrant liability of $364,878 have contractual maturities of less than 30 days and are subject to normal trade terms. The Company regularly evaluates its cash position to ensure preservation and security of capital as well as liquidity. In the normal course of business, management considers various alternatives to ensure that the Company can meet some of its operating cash flow requirements through financing activities, such as private placements of common stock, preferred stock offerings and offerings of debt and convertible debt instruments as well as through merger or acquisition opportunities. Management may also consider strategic alternatives, including strategic investments and divestitures. As future operations may be financed out of funds generated from financing activities, the ability to do so is dependent on, among other factors, the overall state of capital markets and investor appetite for investments in the green technology industry and the Companys securities in particular. Should the Company elect to satisfy its cash commitments through the issuance of securities, by way of either private placement or public offering or otherwise, there can be no assurance that the efforts to obtain such additional funding will be successful, or achieved on terms favorable to the Company or its existing shareholders. If adequate funds are not available on favorable terms, the Company may have to reduce substantially or eliminate expenditures or obtain funds through other sources such as divestiture or monetization of certain assets or sublicensing (where permitted) of certain rights to certain of the Companys technologies or products. (b) Concentration of credit risk Financial instruments that potentially subject the Company to concentrations of credit risk consist principally of cash deposits. Cash deposits with a major Canadian chartered bank are insured by the Canadian Deposit Insurance Corporation up to $100,000. As at March 31, 2015, the Company held $3,084 (2014 - $64,674) with a major Canadian chartered bank. (c) Foreign exchange risk The Company principally operates within Canada. The Companys functional currency is the Canadian dollar and major purchases are transacted in Canadian dollars. Management believes the foreign exchange risk derived from currency conversions is negligible and therefore does not hedge its foreign exchange risk. See also Note 11 (e). (d) Interest rate risk The Company does not have any interest-bearing debt. The Company invests any cash surplus to its operational needs in investment-grade short-term deposit certificates issued by highly rated Canadian banks. The Company periodically assesses the quality of its investments and is satisfied with the credit rating of the bank. (e) Derivative liability warrant liability In connection with a consulting agreement, the Company granted warrants to purchase up to 625,000 common shares of the Company as disclosed in Note 7(b). The warrants have an exercise price of USD$0.04 ($0.051). The warrants are exercisable at any time prior to April 1, 2017. The warrants are accounted for as derivative liabilities because the exercise price is denominated in a currency other than the Companys functional currency. In connection with the settlement of a vendors account, the Company granted warrants to purchase up to 3,350 common shares of the Company as disclosed in Note 7(b). The warrants have an exercise price of USD$1.50 ($1.90). The warrants are exercisable at any time prior to October 22, 2016. The warrants are accounted for as derivative liabilities because the exercise price is denominated in a currency other than the Companys functional currency. In connection with a private placement, the Company granted warrants to purchase up to 8,850 common shares of the Company as disclosed in Note 7(b). The warrants have an exercise price of USD$2.00 ($2.54). The warrants are exercisable at any time prior to November 30, 2016. The warrants are accounted for as derivative liabilities because the exercise price is denominated in a currency other that the Companys functional currency. The table below summarizes the fair value of the Companys financial liabilities measured at fair value: Fair Value at March 31, Fair Value Measurement Using 2015 Level 1 Level 2 Level 3 Derivative liability Warrants $ 364,878 $ - $ - $ 364,878 The table below sets forth a summary of changes in the fair value of the Companys Level 3 financial liabilities (warrant derivative liability) for the years March 31, 2015 and March 31, 2014: March 31, March 31, 2015 2014 Balance at beginning of year $ - $ - Additions to derivative instruments, recognized in earnings as professional fees (Note 7(b)(iv)) 240,000 - Additions to derivative instruments as a result of issuance in settlement of debt (Note 7(b)(v)) 2,060 - Additions to derivative instruments as a result of issuance of units (Note 7(b)(ii)) 6,213 - Derivative instruments exercised (32,675 ) - Change in fair market value, recognized in operations as professional fees 149,280 - Balance at end of year $ 364,878 - These instruments were valued using pricing models that incorporate the price of a share of common stock (based upon the price of the most recent private placement), expected volatility, risk free rate, expected dividend rate and expected estimated life. The Company estimated the value of the warrants using the Black-Scholes model. There were no transfers of assets or liabilities between Level 1, Level 2, or Level 3 during the years ended March 31, 2015 and 2014. The following are the key weighted average assumptions used in connection with the estimation of fair value as at March 31, 2015: March 31, 2015 Number of shares underlying the warrants 612,200 Fair market value of the stock $ 1.34 Exercise price USD$0.076 ($0.097 ) Expected volatility 118 % Risk-free interest rate 0.52 % Expected dividend yield 0 % Expected warrant life (years) 2.00 |
13. Subsequent Events
13. Subsequent Events | 3 Months Ended |
Sep. 30, 2015 | |
Subsequent Events [Abstract] | |
Subsequent Events | On October 21 st th |
2. Presentation of Financial 22
2. Presentation of Financial Statements (Policies) | 6 Months Ended | 12 Months Ended |
Sep. 30, 2015 | Mar. 31, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Basis of Presentation | These unaudited condensed interim financial statements should be read in conjunction with the financial statements for the Companys most recently completed fiscal year ended March 31, 2015. These condensed interim financial statements do not include all disclosures required in annual financial statements, but rather are prepared in accordance with recommendations for interim financial statements in conformity with accounting principles generally accepted in the United States of America ("U.S. GAAP"). These unaudited condensed interim financial statements have been prepared using the same accounting policies, and methods as those used by the Company in the annual audited financial statements for the year ended March 31, 2015, except when disclosed below. The unaudited condensed interim financial statements contain all adjustments (consisting of only normal recurring adjustments) which are necessary to present fairly the financial position of the Company as at September 30, 2015, and the results of its operations for the three and six month periods ended September 30, 2015 and 2014 and its cash flows for the six month periods ended September 30, 2015 and 2014. Note disclosures have been presented for material updates to the information previously reported in the annual audited financial statements. In June 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update No. 2014-10 ASU 2014-10 to eliminate certain financial reporting requirements for development stage entities. The amendments in ASU 2014-10 remove the incremental financial reporting requirements from US GAAP for development stage entities, including the presentation of inception-to-date information in the statements of income, cash flows and shareholder equity, and disclosure of the financial statements as those of a development stage entity. The Company has chosen to early adopt these amendments effective for its fiscal year ended March 31, 2013 and onwards. | The financial statements have been prepared in accordance with U.S Generally Accepted Accounting Principles (US GAAP). All adjustments considered necessary for a fair presentation of financial position, results of operations and cash flows as of March 31, 2015 have been included. The Companys financial statements are prepared using the accrual basis of accounting in accordance with US GAAP and the Companys functional and reporting currency is the Canadian dollar. In June 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update No. 2014-10 ASU 2014-10 to eliminate certain financial reporting requirements for development stage entities. The amendments in ASU 2014-10 remove the incremental financial reporting requirements from US GAAP for development stage entities, including the presentation of inception-to-date information in the statements of income, cash flows and shareholder equity, and disclosure of the financial statements as those of a development stage entity. The Company has chosen to early adopt these amendments effective for its fiscal year ended March 31, 2013 and onwards. |
Estimates | The preparation of these condensed interim financial statements has required management to make estimates and assumptions that affect the amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of the revenues and expenses during the reporting period. On an ongoing basis, the Company evaluates its estimates, including those related to provision for doubtful accounts, accrued liabilities, income taxes, stock based compensation and intangible assets. The Company bases its estimates on historical experiences and on various other assumptions believed to be reasonable under the circumstances. Actual results could differ from those estimates. As adjustments become necessary, they are reported in earnings in the period in which they become known. | The preparation of the financial statements in accordance with US 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 revenues and expenses during the reporting period. Actual amounts could materially differ from these estimates. The significant areas requiring the use of management estimates are related to the valuation of deferred taxes, stock based compensation, warrants, and intangible assets. Although these estimates are based on managements knowledge of current events and actions management may undertake in the future, actual results may ultimately differ materially from those estimates. |
Cash and Cash Equivalents | Cash and cash equivalents include cash on hand, and all highly liquid debt instruments purchased with an original maturity of three months or less. As at March 31, 2015 and March 31, 2014 there were no cash equivalents. | |
Prepaid Expenses | Prepaid expenses consist of services paid, for which the Company has not yet received the benefit. | |
Equipment and Leasehold Improvements | Equipment and leasehold improvements are stated at cost less accumulated amortization and accumulated impairment losses. Cost includes expenditures that are directly attributable to the acquisition of the asset. Subsequent costs are included in the assets carrying amount or recognized as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the Company and the cost can be measured reliably. The carrying amount of an asset is derecognized when replaced. Repairs and maintenance costs are charged to the statements of operations, during the year in which they are incurred. Amortization is provided for over the estimated useful life of the asset as follows: Computer equipment 30% on a declining balance Production equipment 20% on a declining balance Leasehold improvements are amortized over the term of the lease or useful life of the improvements, whichever is shorter, which is currently 5 years. Useful lives and residual values are reviewed and adjusted, if appropriate, at the end of each reporting period. An assets carrying amount is written down immediately to its recoverable amount if the assets carrying amount is greater than its estimated recoverable amount. The cost and accumulated amortization of assets retired or sold are removed from the respective accounts and any gain or loss is recognized in operations. | |
Intangible Assets | Intangible assets are comprised of patents. Patents represent capitalized legal costs incurred in connection with applications for patents. In-process patents are not amortized. All patents subject to amortization are amortized on a straight line basis over an estimated useful life. The Company regularly evaluates patents and patent applications for impairment or abandonment, at which point the Company charges the remaining net book value to expenses. | |
Impairment of Long-Lived Assets | The Company reviews its long-lived assets for impairment whenever events and circumstances indicate that the carrying value of an asset might not be recoverable. An impairment loss, measured as the amount by which the carrying amount exceeds the fair value, is recognized if the carrying amount exceeds estimated undiscounted future cash flows. | |
Research and Development | Research and development costs include costs directly attributable to the conduct of research and development programs, including the cost of consulting fees, materials, supplies, and the maintenance of research equipment. All costs associated with research and development are expensed as incurred. The approved refundable portion of tax credits are netted against the related expenses. Non-refundable investment tax credits are recorded in the period when reasonable assurance exists that the Company has complied with the terms and conditions required for approval of the tax credit and it is more likely than not that the Company will realize the benefits of these tax credits against the deferred taxes. Refundable investment tax credits are recorded in the period when reasonable assurance exists that the Company has complied with the terms and conditions required for approval of the tax credit and it is more likely than not that the Company will collect it. | |
Stock-based Compensation | The Company uses the fair value based method of accounting for all its stock-based compensation in accordance with FASB Accounting Standards Codification ("ASC") ASC 718 Compensation Stock Compensation. The estimated fair value of the options and warrants that are ultimately expected to vest based on performance related conditions, as well as the options and warrants that are expected to vest based on future service, is recorded over the instruments requisite service period and charged to stock-based compensation. In determining the amount of options and warrants that are expected to vest, the Company takes into account, voluntary termination behavior as well as trends of actual option and warrant forfeitures. Stock options and warrants which are indexed to a factor which is not a market, performance or service condition, in addition to the Companys share price, are classified as liabilities and re-measured at each reporting date based on the Black-Scholes option pricing model with a charge to operations, until the date of settlement. | |
Income Taxes | Income taxes are accounted for under the liability method of accounting for income taxes. Under the liability method, deferred tax liabilities and assets are recognized for the estimated future tax consequences attributable to differences between the amounts reported in the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted income tax rates expected to apply when the asset is realized or the liability is settled. The effect of a change in income tax rates on deferred tax liabilities and assets is recognized in income in the period in which the change occurs. Deferred tax assets are recognized to the extent that they are considered more likely than not to be realized. FASB issued ASC 740-10 Accounting for Uncertainty in Income Taxes. ASC 740-10 clarifies the accounting for uncertainty in income taxes recognized in an enterprises financial statements in accordance with prior literature FASB Statement No. 109, Accounting for Income Taxes. This standard requires a company to determine whether it is more likely than not that a tax position will be sustained upon examination based upon the technical merits of the position. If the more-likely-than-not threshold is met, a company must measure the tax position to determine the amount to recognize in the financial statements. The implementation of this standard had no impact on the Companys financial statements. | |
Fair Value of Financial Instruments | ASC 820 Fair Value Measurement defines fair value, establishes a framework for measuring fair value under generally accepted accounting principles and enhances disclosures about fair value measurements. Fair value is defined under ASC 820 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 on the measurement date. Valuation techniques used to measure fair value under ASC 820 must maximize the use of observable inputs and minimize the use of unobservable inputs. The standard describes a fair value hierarchy based on three levels of inputs, of which the first two are considered observable and the last unobservable, that may be used to measure fair value as follows: Level 1 unadjusted quoted prices in active markets for identical assets or liabilities; Level 2 inputs other than quoted prices that are observable for the asset or liability or indirectly; and Level 3 inputs that are not based on observable market data. The carrying amounts of the Companys financial instruments including cash, amounts receivable, accounts payable and accrued liabilities and advances from shareholders approximate their fair values due to their short-term nature. Management is of the opinion that the Company is not exposed to significant interest, credit or currency risks from these financial instruments. The Companys equity-linked financial instruments reflected as warrant liability on the balance sheet represent financial liabilities classified as Level 3 as per ASU 2009-05. As required by the guidance, assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. The fair value of the warrant liability which is not traded in an active market has been determined using the Black-Scholes option pricing model based on assumptions that are not supported by observable market conditions. | |
Loss per Share | Basic loss per share is calculated by dividing the net loss available to common shareholders by the weighted average number of common shares outstanding during the year. Diluted loss per share is calculated using the treasury stock method and reflects the potential dilution of securities by including warrants and contingently issuable shares, if any, in the weighted average number of common shares outstanding for a year, if dilutive. In a loss year, dilutive common shares are excluded from the loss per share calculation as the effect would be anti-dilutive. Accordingly, for the years ended March 31, 2015 and 2014, the basic loss per share was equal to diluted loss per share as there were no dilutive securities. | |
Comprehensive Income (Loss) | ASC 220 Comprehensive Income establishes standards for reporting and display of comprehensive income, its components and accumulated balances. The net loss is equivalent to the comprehensive loss for the periods presented. | |
New Accounting Pronouncements | In July 2013, the FASB issued ASU No. 2013-11 Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists. The objective of ASU No. 2013-11 is to provide guidance on the financial statement presentation of an unrecognized tax benefit when a net loss carryforward, similar tax loss, or tax credit carryforward exists. The amendments in this standard are effective prospectively for interim and annual reporting periods beginning after December 15, 2013. The adoption of ASU No. 2013-11 did not have a material impact on the Companys Financial position or results of operations. Other accounting standards that have been issued or proposed by the FASB or other standards-setting bodies that do not require adoption until a future date are not expected to have a material impact on the Companys financial statements upon adoption. |
3. Equipment and Leasehold Im23
3. Equipment and Leasehold Improvements (Tables) | 6 Months Ended | 12 Months Ended |
Sep. 30, 2015 | Mar. 31, 2015 | |
Property, Plant and Equipment [Abstract] | ||
Equipment and Leasehold Improvements | September 30, 2015 March 31, 2015 Cost Accumulated Amortization Cost Accumulated Amortization Computer equipment $ 3,558 $ 1,774 $ 3,558 $ 1,459 Production equipment 67,367 22,784 67,367 17,831 Leasehold improvements 33,649 11,393 33,649 7,784 Total $ 104,574 $ 35,951 $ 104,574 $ 27,074 Net carrying amount $ 68,623 $ 77,500 | March 31, 2015 March 31, 2014 Cost Accumulated Amortization Cost Accumulated Amortization Computer equipment $ 3,558 $ 1,459 $ 1,865 $ 560 Production equipment 67,367 17,831 27,236 5,447 Leasehold improvements 33,649 7,784 10,954 730 Total $ 104,574 $ 27,074 $ 40,055 $ 6,737 Net carrying amount $ 77,500 $ 33,318 |
8. Capital Stock (Tables)
8. Capital Stock (Tables) | 6 Months Ended | 12 Months Ended |
Sep. 30, 2015 | Mar. 31, 2015 | |
Equity [Abstract] | ||
Summary of warrants outstanding | Expiry Date Number of Warrants Grant Date Average Exercise Price Weighted Average Exercise Equity Grant Date Fair Value Equity Fair Value at September 30, 2015 of Vested Warrents - Liability June 6, 2016 300,383 300,383 $ 2.24 * $ 170,908 $ - June 7, 2016 5,000 5,000 $ 1.12 3,180 - June 6, 2017 22,500 22,500 $ 1.12 16,110 - April 1, 2017 587,500 262,500 USD $0.04 - 340,462 $ (0.054 ) October 22, 2016 3,350 3,350 USD $1.50 - 1,990 $ (2.01 ) November 30, 2016 8,850 8,850 USD $2.00 - 6,213 $ (2.68 ) 927,583 $ 602,583 0.83 $ 190,198 $ 348,665 | As at March 31, 2015, the following warrants were outstanding: Expiry Date Number of Warrants Number of Warrants Exercisable Weighted Average Exercise Price Grant Date Fair Value Equity Fair Value at March 31, 2015 of Vested Warrants - Liability June 6, 2016 300,383 300,383 $ 1.68 * $ 170,908 $ - June 7, 2016 5,000 5,000 $ 1.12 3,180 - June 6, 2017 22,500 22,500 $ 1.12 16,110 - April 1, 2017 600,000 275,000 USD $0.04 - 356,675 $ (0.051 ) October 22, 2016 3,350 3,350 USD $1.50 - 1,990 $ (1.90 ) November 30, 2016 8,850 8,850 USD $2.00 - 6,213 $ (2.54 ) 940,083 615,083 $ 0.63 $ 190,198 $ 364,878 *Exercisable at $1.68 during the first year and at $2.24 during the second year. |
Schedule of option activity | Number of Options Granted Weighted Average Exercise Price Balance, March 31, 2015 505,000 $ 1.73 Granted - - Balance, September 30, 2015 505,000 $ 1.73 | The activities in options outstanding are as noted below: Number of Options Granted Weighted Average Exercise Price Balance, March 31, 2013 and 2014 - - Granted 505,000 1.73 Balance, March 31, 2015 505,000 $ 1.73 |
Schedule of stock options outstanding and exercisable | Options Outstanding Options Exercisable Exercise Price Number of Shares Weighted Average Remaining Contractual Life (Years) Number of Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Life (Years) $ 1.73 505,000 4.2 291,667 $ 1.73 4.2 | The following table presents information relating to stock options outstanding and exercisable at March 31, 2015. Options Outstanding Options Exercisable Exercise Price Number of Shares Weighted Average Remaining Contractual Life (Years) Number of Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Life (Years) $ 1.73 505,000 4.70 195,000 $ 1.73 4.70 |
9. Income Taxes (Tables)
9. Income Taxes (Tables) | 12 Months Ended |
Mar. 31, 2015 | |
Income Taxes Tables | |
Income tax reconciliation | 2015 2014 Loss before income taxes $ (1,087,289 ) $ (232,956 ) Statutory tax rate 26.5 % 26.5 % Expected income tax (recovery) $ (288,000 ) $ (62,000 ) Non-deductible items 197,000 1,000 Change in valuation allowance 91,000 61,000 Total income taxes (recovery) $ - $ - |
Deferred tax asset | 2015 2014 Net operating loss carry forwards $ 242,000 $ 187,000 Equipment and leasehold improvements 30,000 - Valuation allowance (272,000 ) (187,000 ) Net deferred tax asset $ - $ - |
Operating loss carry forwards | Expiry 2029 $ 65,000 2030 83,000 2031 28,000 2032 81,000 2033 91,000 2034 242,000 2035 323,000 Total $ 913,000 |
10. Commitments and Contingen26
10. Commitments and Contingencies (Tables) | 6 Months Ended | 12 Months Ended |
Sep. 30, 2015 | Mar. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | ||
Schedule of Future Minimum Rental Payments for Operating Leases | 2016 (remaining) $ 12,997 2017 25,994 2018 26,328 2019 17,552 | 2016 $ 25,732 2017 25,732 2018 26,064 2019 17,376 |
Schedule of Employment Agreements | Cumulative Funds Raised1 Effective Monthly Salary % $ 100,000 10.0 % $ 175,000 15.0 % $ 250,000 25.0 % $ 375,000 37.5 % $ 500,000 50.0 % $ 750,000 62.5 % $ 1,000,000 75.0 % $ 1,250,000 87.5 % $ 1,500,000 100.0 % | Cumulative Funds Raised1 Effective Monthly Salary % $ 100,000 10.0 % $ 175,000 15.0 % $ 250,000 25.0 % $ 375,000 37.5 % $ 500,000 50.0 % $ 750,000 62.5 % $ 1,000,000 75.0 % $ 1,250,000 87.5 % $ 1,500,000 100.0 % |
12. Financial Instruments (Tabl
12. Financial Instruments (Tables) | 6 Months Ended | 12 Months Ended |
Sep. 30, 2015 | Mar. 31, 2015 | |
Investments, All Other Investments [Abstract] | ||
Fair value of financial liabilities | Fair Value at September 30, Fair Value Measurement Using 2015 Level 1 Level 2 Level 3 Derivative liability Warrants $ 348,665 $ - $ - $ 348,665 | Fair Value at March 31, Fair Value Measurement Using 2015 Level 1 Level 2 Level 3 Derivative liability Warrants $ 364,878 $ - $ - $ 364,878 |
Changes in the fair value of Level 3 financial liabilities | September 30, 2015 March 31, 2015 Balance at beginning of period $ 364,878 $ - Additions to derivative instruments, recognized in earnings as professional fees - 240,000 Additions to derivative instruments as a result of issuance in settlement of debt - 2,060 Additions to derivative instrumentsas a result of issuance of units - 6,213 Derivative instruments exercised (16,213 ) (32,675 ) Change in fair market value, recognized in operations as professional fees - 149,280 Balance at end of period $ 348,665 $ 364,878 | March 31, March 31, 2015 2014 Balance at beginning of year $ - $ - Additions to derivative instruments, recognized in earnings as professional fees (Note 7(b)(iv)) 240,000 - Additions to derivative instruments as a result of issuance in settlement of debt (Note 7(b)(v)) 2,060 - Additions to derivative instruments as a result of issuance of units (Note 7(b)(ii)) 6,213 - Derivative instruments exercised (32,675 ) - Change in fair market value, recognized in operations as professional fees 149,280 - Balance at end of year $ 364,878 - |
Fair value assumptions | September 30, 2015 Number of shares underlying the warrants 599,700 Fair market value of the stock $ 1.34 Exercise price USD$0.076 ($0.1032) Expected volatility 140 % Risk-free interest rate 0.62 % Expected dividend yield 0 % Expected warrant life (years) 1.49 | March 31, 2015 Number of shares underlying the warrants 612,200 Fair market value of the stock $ 1.34 Exercise price USD$0.076 ($0.097 ) Expected volatility 118 % Risk-free interest rate 0.52 % Expected dividend yield 0 % Expected warrant life (years) 2.00 |
1. Nature of the Business and28
1. Nature of the Business and Going Concern (Details Narrative) - CAD | Sep. 30, 2015 | Mar. 31, 2015 | Mar. 31, 2014 |
Nature Of Business And Going Concern Details Narrative | |||
Working capital deficiency | CAD 856,927 | CAD 845,406 | CAD 434,263 |
Accumulated deficit | CAD (2,121,813) | CAD (1,809,373) | CAD (722,084) |
3. Equipment and Leasehold Im29
3. Equipment and Leasehold Improvements (Details) - CAD | Sep. 30, 2015 | Mar. 31, 2015 | Mar. 31, 2014 |
Property and Equipment, cost | CAD 104,574 | CAD 104,574 | CAD 40,055 |
Accumulated Amortization | 35,951 | 27,074 | 6,737 |
Net carrying amount | 68,623 | 77,500 | 33,318 |
Computer equipment | |||
Property and Equipment, cost | 3,558 | 3,558 | 1,865 |
Accumulated Amortization | 1,774 | 1,459 | 560 |
Production equipment | |||
Property and Equipment, cost | 67,367 | 67,367 | 27,236 |
Accumulated Amortization | 22,784 | 17,831 | 5,447 |
Leasehold improvements | |||
Property and Equipment, cost | 33,649 | 33,649 | 10,954 |
Accumulated Amortization | CAD 11,393 | CAD 7,784 | CAD 730 |
3. Equipment and Leasehold Im30
3. Equipment and Leasehold Improvements (Details Narrative) - CAD | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Mar. 31, 2015 | Mar. 31, 2014 | |
Property, Plant and Equipment [Abstract] | ||||||
Amortization expense | CAD 4,440 | CAD 4,840 | CAD 8,878 | CAD 8,676 | CAD 20,338 | CAD 6,737 |
4. Intangible Assets (Details N
4. Intangible Assets (Details Narrative) - CAD | Sep. 30, 2015 | Mar. 31, 2015 | Mar. 31, 2014 |
Intangible Assets Details Narrative | |||
Intangible assets | CAD 15,970 | CAD 15,970 | CAD 7,141 |
5. Advances from Shareholders (
5. Advances from Shareholders (Details Narrative) - CAD | Sep. 30, 2015 | Mar. 31, 2015 | Mar. 31, 2014 |
Advances From Shareholders Details Narrative | |||
Advances from shareholders | CAD 380,670 | CAD 367,267 | CAD 431,406 |
7. Convertible Note (Details Na
7. Convertible Note (Details Narrative) - CAD | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Mar. 31, 2015 | Mar. 31, 2014 | |
Payables and Accruals [Abstract] | ||||||
Accretion expense | CAD 2,076 | CAD 0 | CAD 2,076 | CAD 0 | CAD 0 | CAD 0 |
8. Capital Stock (Details)
8. Capital Stock (Details) | 6 Months Ended |
Sep. 30, 2015CADCAD / sharesshares | |
Warrants Expiring June 6, 2016 | |
Number of warrants | shares | 300,383 |
Exercisable warrants | shares | 300,383 |
Weighted average exercise price | CAD / shares | CAD 2.24 |
Grant date fair value equity | CAD | CAD 170,908 |
Fair Value at September 30, 2015 of Vested Warrants - Liability | CAD | CAD 0 |
Warrants Expiring June 7, 2016 | |
Number of warrants | shares | 5,000 |
Exercisable warrants | shares | 5,000 |
Weighted average exercise price | CAD / shares | CAD 1.12 |
Grant date fair value equity | CAD | CAD 3,180 |
Fair Value at September 30, 2015 of Vested Warrants - Liability | CAD | CAD 0 |
Warrants Expiring June 6, 2017 | |
Number of warrants | shares | 22,500 |
Exercisable warrants | shares | 22,500 |
Weighted average exercise price | CAD / shares | CAD 1.12 |
Grant date fair value equity | CAD | CAD 16,110 |
Fair Value at September 30, 2015 of Vested Warrants - Liability | CAD | CAD 0 |
Warrants Expiring April 1, 2017 | |
Number of warrants | shares | 587,500 |
Exercisable warrants | shares | 262,500 |
Weighted average exercise price | CAD / shares | CAD 0.054 |
Grant date fair value equity | CAD | CAD 0 |
Fair Value at September 30, 2015 of Vested Warrants - Liability | CAD | CAD 340,462 |
Warrants Expiring October 22, 2016 | |
Number of warrants | shares | 3,350 |
Exercisable warrants | shares | 3,350 |
Weighted average exercise price | CAD / shares | CAD 2.01 |
Grant date fair value equity | CAD | CAD 0 |
Fair Value at September 30, 2015 of Vested Warrants - Liability | CAD | CAD 1,990 |
Warrants Expiring November 30, 2016 | |
Number of warrants | shares | 8,850 |
Exercisable warrants | shares | 8,850 |
Weighted average exercise price | CAD / shares | CAD 2.68 |
Grant date fair value equity | CAD | CAD 0 |
Fair Value at September 30, 2015 of Vested Warrants - Liability | CAD | CAD 6,213 |
Warrants | |
Number of warrants | shares | 927,583 |
Exercisable warrants | shares | 602,583 |
Weighted average exercise price | CAD / shares | CAD 0.83 |
Grant date fair value equity | CAD | CAD 190,198 |
Fair Value at September 30, 2015 of Vested Warrants - Liability | CAD | CAD 348,665 |
8. Capital Stock (Details 1)
8. Capital Stock (Details 1) | 12 Months Ended |
Mar. 31, 2015CADCAD / sharesshares | |
Warrant | |
Number of warrants | shares | 940,083 |
Exercisable warrants | shares | 615,083 |
Weighted average exercise price | CAD / shares | CAD 0.63 |
Grant date fair value equity | CAD | CAD 190,198 |
Fair Value at March 31, 2015 of Vested Warrants - Liability | CAD | CAD 364,878 |
Expiry June 6, 2016 | |
Number of warrants | shares | 300,383 |
Exercisable warrants | shares | 300,383 |
Weighted average exercise price | CAD / shares | CAD 1.68 |
Grant date fair value equity | CAD | CAD 170,908 |
Fair Value at March 31, 2015 of Vested Warrants - Liability | CAD | |
Expiry June 7, 2016 | |
Number of warrants | shares | 5,000 |
Exercisable warrants | shares | 5,000 |
Weighted average exercise price | CAD / shares | CAD 1.12 |
Grant date fair value equity | CAD | CAD 3,180 |
Fair Value at March 31, 2015 of Vested Warrants - Liability | CAD | |
Expiry June 6, 2017 | |
Number of warrants | shares | 22,500 |
Exercisable warrants | shares | 22,500 |
Weighted average exercise price | CAD / shares | CAD 1.12 |
Grant date fair value equity | CAD | CAD 16,110 |
Fair Value at March 31, 2015 of Vested Warrants - Liability | CAD | |
Expiry April 1, 2017 | |
Number of warrants | shares | 600,000 |
Exercisable warrants | shares | 275,000 |
Weighted average exercise price | CAD / shares | |
Grant date fair value equity | CAD | |
Fair Value at March 31, 2015 of Vested Warrants - Liability | CAD | CAD 356,675 |
Expiry October 22, 2016 | |
Number of warrants | shares | 3,350 |
Exercisable warrants | shares | 3,350 |
Weighted average exercise price | CAD / shares | |
Grant date fair value equity | CAD | |
Fair Value at March 31, 2015 of Vested Warrants - Liability | CAD | CAD 1,990 |
Expiry November 30, 2016 | |
Number of warrants | shares | 8,850 |
Exercisable warrants | shares | 8,850 |
Weighted average exercise price | CAD / shares | |
Grant date fair value equity | CAD | |
Fair Value at March 31, 2015 of Vested Warrants - Liability | CAD | CAD 6,213 |
8. Capital Stock (Details 2)
8. Capital Stock (Details 2) - Options - CAD / shares | 6 Months Ended | 12 Months Ended |
Sep. 30, 2015 | Mar. 31, 2015 | |
Options, beginning | 505,000 | 0 |
Granted | 0 | 505,000 |
Options, ending | 505,000 | 505,000 |
Weighted average exercise price, beginning | CAD 1.73 | CAD 0 |
Weighted average exercise price, Granted | 0 | 1.73 |
Weighted average exercise price, ending | CAD 1.73 | CAD 1.73 |
8. Capital Stock (Details 3)
8. Capital Stock (Details 3) - Options - CAD / shares | 6 Months Ended | 12 Months Ended | |
Sep. 30, 2015 | Mar. 31, 2015 | Mar. 31, 2014 | |
Weighted average exercise price | CAD 1.73 | CAD 1.73 | CAD 0 |
Options Outstanding | 505,000 | 505,000 | 0 |
Weighted Average Remaining Contractual Life (Years) | 4 years 2 months 12 days | 4 years 8 months 12 days | |
Options Exercisable | 291,667 | 195,000 | |
Weighted Average Exercise Price | CAD 1.73 | CAD 1.73 | |
Weighted Average Remaining Contractual Life (Years) | 4 years 2 months 12 days | 4 years 8 months 12 days |
8. Capital Stock (Details Narra
8. Capital Stock (Details Narrative) - CAD | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Mar. 31, 2015 | |
Additional Paid in Capital | CAD 188,026 | CAD 324,916 | |||
Maximum | |||||
Option to be issued | 1,397,836 | 1,397,836 | 1,388,461 | ||
Director | |||||
Additional Paid in Capital | CAD 112,976 | CAD 0 | CAD 188,026 | CAD 0 | |
Warrant | Consultant | |||||
Compensation expense | 0 | 98,119 | 0 | 237,300 | |
Market adjustment | CAD 0 | CAD 2,526 | CAD 0 | CAD 2,700 |
9. Income Taxes (Details)
9. Income Taxes (Details) - CAD | 12 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Income Taxes Details | ||
Loss before income taxes | CAD (1,087,289) | CAD (232,956) |
Statutory tax rate | 26.50% | 26.50% |
Expected income tax (recovery) | CAD (288,000) | CAD (62,000) |
Non-deductible items | 197,000 | 1,000 |
Change in valuation allowance | 91,000 | 61,000 |
Total income taxes (recovery) | CAD 0 | CAD 0 |
9. Income Taxes (Details 1)
9. Income Taxes (Details 1) - CAD | Mar. 31, 2015 | Mar. 31, 2014 |
Income Taxes Details 1 | ||
Net operating loss carry forwards | CAD 242,000 | CAD 187,000 |
Equipment and leasehold improvements | 30,000 | 0 |
Valuation allowance | (272,000) | (187,000) |
Net deferred tax asset | CAD 0 | CAD 0 |
9. Income Taxes (Details 2)
9. Income Taxes (Details 2) - CAD | Sep. 30, 2015 | Mar. 31, 2015 | Mar. 31, 2014 |
Operating loss carry forwards | CAD 1,009,000 | CAD 913,000 | CAD 706,000 |
Expiry 2,029 | |||
Operating loss carry forwards | 65,000 | ||
Expiry 2,030 | |||
Operating loss carry forwards | 83,000 | ||
Expiry 2,031 | |||
Operating loss carry forwards | 28,000 | ||
Expiry 2,032 | |||
Operating loss carry forwards | 81,000 | ||
Expiry 2,033 | |||
Operating loss carry forwards | 91,000 | ||
Expiry 2,034 | |||
Operating loss carry forwards | 242,000 | ||
Expiry 2,035 | |||
Operating loss carry forwards | CAD 323,000 |
9. Income Taxes (Details Narrat
9. Income Taxes (Details Narrative) - CAD | 6 Months Ended | ||
Sep. 30, 2015 | Mar. 31, 2015 | Mar. 31, 2014 | |
Income Taxes Details Narrative | |||
Non-capital loss carryforwards | CAD 1,009,000 | CAD 913,000 | CAD 706,000 |
Operating loss carryforward, expiry period | Between 2029 and 2036 |
10. Commitments and Contingen43
10. Commitments and Contingencies (Details) - CAD | Mar. 31, 2015 | Mar. 31, 2014 |
Commitments and Contingencies Disclosure [Abstract] | ||
2016 (remaining) | CAD 12,997 | CAD 25,732 |
2,017 | 25,994 | 25,732 |
2,018 | 26,328 | 26,064 |
2,019 | CAD 17,552 | CAD 17,376 |
10. Commitments and Contingen44
10. Commitments and Contingencies (Details 1) | 6 Months Ended | |
Sep. 30, 2015CAD | ||
Funds Raised [Member] | ||
Cumulative Funds Raised | CAD 100,000 | [1] |
Effective Monthly Salary | 10.00% | |
Funds Raised One [Member] | ||
Cumulative Funds Raised | CAD 175,000 | [1] |
Effective Monthly Salary | 15.00% | |
Funds Raised Two [Member] | ||
Cumulative Funds Raised | CAD 250,000 | [1] |
Effective Monthly Salary | 25.00% | |
Funds Raised Three [Member] | ||
Cumulative Funds Raised | CAD 375,000 | [1] |
Effective Monthly Salary | 37.50% | |
Funds Raised Four [Member] | ||
Cumulative Funds Raised | CAD 500,000 | [1] |
Effective Monthly Salary | 50.00% | |
Funds Raised Five [Member] | ||
Cumulative Funds Raised | CAD 750,000 | [1] |
Effective Monthly Salary | 62.50% | |
Funds Raised Six [Member] | ||
Cumulative Funds Raised | CAD 1,000,000 | [1] |
Effective Monthly Salary | 75.00% | |
Funds Raised Seven [Member] | ||
Cumulative Funds Raised | CAD 1,250,000 | [1] |
Effective Monthly Salary | 87.50% | |
Funds Raised Eight [Member] | ||
Cumulative Funds Raised | CAD 1,500,000 | [1] |
Effective Monthly Salary | 100.00% | |
[1] | Cumulative funds raised is inclusive of all sources including without limitation capital raised, grants received, revenue recorded, debt raised, and assets sold. |
10. Commitments and Contingen45
10. Commitments and Contingencies (Details 2) | 12 Months Ended |
Mar. 31, 2015 | |
Scenario 1 | |
Commitments | Cumulative Funds Raised (inclusive of all sources including without limitation capital raised, grants received, revenue recorded, debt raised, and assets sold): 100,000, Effective Monthly Salary: 10.0% |
Scenario 2 | |
Commitments | Cumulative Funds Raised (inclusive of all sources including without limitation capital raised, grants received, revenue recorded, debt raised, and assets sold): 175,000, Effective Monthly Salary: 15.0% |
Scenario 3 | |
Commitments | Cumulative Funds Raised (inclusive of all sources including without limitation capital raised, grants received, revenue recorded, debt raised, and assets sold): 250,000, Effective Monthly Salary: 25.0% |
Scenario 4 | |
Commitments | Cumulative Funds Raised (inclusive of all sources including without limitation capital raised, grants received, revenue recorded, debt raised, and assets sold): 375,000, Effective Monthly Salary: 37.5% |
Scenario 5 | |
Commitments | Cumulative Funds Raised (inclusive of all sources including without limitation capital raised, grants received, revenue recorded, debt raised, and assets sold): 500,000, Effective Monthly Salary: 50.0% |
Scenario 6 | |
Commitments | Cumulative Funds Raised (inclusive of all sources including without limitation capital raised, grants received, revenue recorded, debt raised, and assets sold): 750,000, Effective Monthly Salary: 62.5% |
Scenario 7 | |
Commitments | Cumulative Funds Raised (inclusive of all sources including without limitation capital raised, grants received, revenue recorded, debt raised, and assets sold): 1,000,000, Effective Monthly Salary: 75.0% |
Scenario 8 | |
Commitments | Cumulative Funds Raised (inclusive of all sources including without limitation capital raised, grants received, revenue recorded, debt raised, and assets sold): 1,250,000, Effective Monthly Salary: 87.5% |
Scenario 9 | |
Commitments | Cumulative Funds Raised (inclusive of all sources including without limitation capital raised, grants received, revenue recorded, debt raised, and assets sold): 1,500,000, Effective Monthly Salary: 100.0% |
10. Commitments and Contingen46
10. Commitments and Contingencies (Details Narrative) - CAD | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Mar. 31, 2015 | Mar. 31, 2014 | |
Commitments And Contingencies Details Narrative | ||||||
Rental expenses | CAD 6,498 | CAD 6,433 | CAD 12,999 | CAD 12,866 | CAD 25,732 | CAD 6,427 |
11. Related Party Transactions
11. Related Party Transactions (Details Narrative) - CAD | 12 Months Ended | ||
Mar. 31, 2015 | Sep. 30, 2015 | Mar. 31, 2014 | |
Related Party Transactions Details Narrative | |||
Due from related party | CAD 29,967 | CAD 30,902 | CAD 0 |
Due to related party | 52,030 | CAD 52,030 | CAD 64,030 |
Management fees and consulting fees waived by officers | CAD 363,750 |
12. Financial Instruments (Deta
12. Financial Instruments (Details) - CAD | Sep. 30, 2015 | Mar. 31, 2015 |
Derivative liability - Warrants | CAD 348,665 | CAD 364,878 |
Level 1 | ||
Derivative liability - Warrants | 0 | 0 |
Level 2 | ||
Derivative liability - Warrants | 0 | 0 |
Level 3 | ||
Derivative liability - Warrants | CAD 348,665 | CAD 364,878 |
12. Financial Instruments (De49
12. Financial Instruments (Details 1) - CAD | 6 Months Ended | 12 Months Ended | |
Sep. 30, 2015 | Mar. 31, 2015 | Mar. 31, 2014 | |
Investments, All Other Investments [Abstract] | |||
Balance at beginning of period | CAD 364,878 | CAD 0 | CAD 0 |
Additions to derivative instruments, recognized in earnings as professional fees | 0 | 240,000 | 0 |
Additions to derivative instruments as a result of issuance in settlement of debt | 0 | 2,060 | 0 |
Additions to derivative instruments as a result of issuance of units | 0 | 6,213 | 0 |
Derivative instruments exercised | (16,213) | (32,675) | 0 |
Change in fair market value, recognized in operations as professional fees | 0 | 149,280 | 0 |
Balance at end of period | CAD 348,665 | CAD 364,878 | CAD 0 |
12. Financial Instruments (De50
12. Financial Instruments (Details 2) - CAD / shares | 6 Months Ended | 12 Months Ended |
Sep. 30, 2015 | Mar. 31, 2015 | |
Investments, All Other Investments [Abstract] | ||
Number of shares underlying the warrants | 599,700 | 612,200 |
Fair market value of the stock | CAD 1.34 | CAD 1.34 |
Exercise price | USD$0.076 ($0.1032) | USD$0.076 ($0.097 ) |
Expected volatility | 140.00% | 118.00% |
Risk-free interest rate | 0.62% | 0.52% |
Expected dividend yield | 0.00% | 0.00% |
Expected warrant life (years) | 1 year 5 months 27 days | 2 years |