Profound Medical (PROF) 40-F 7 Mar 23 2022 FY Annual report (Canada) Financial data

Document and Entity Information

Document and Entity Information	12 Months Ended
	Dec. 31, 2022 shares
Document Information
Document Type	40-F
Document Registration Statement	false
Document Annual Report	true
Document Period End Date	Dec. 31, 2022
Entity File Number	001-39032
Entity Registrant Name	Profound Medical Corp.
Entity Incorporation, State or Country Code	Z4
Entity Primary SIC Number	3841
Entity Tax Identification Number	00-0000000
Entity Address, Address Line One	2400 Skymark Avenue, Unit 6
Entity Address, City or Town	Mississauga
Entity Address, State or Province	ON
Entity Address, Postal Zip Code	L4W 5K5
City Area Code	647
Local Phone Number	476-1350
Title of 12(b) Security	Common Shares
Trading Symbol	PROF
Security Exchange Name	NASDAQ
Annual Information Form	true
Audited Annual Financial Statements	true
Entity Common Stock, Shares Outstanding	20,879,497
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Emerging Growth Company	true
Entity Ex Transition Period	false
Entity Central Index Key	0001628808
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2022
Document Fiscal Period Focus	FY
Amendment Flag	false
Auditor Name	PricewaterhouseCoopers LLP
Auditor Firm ID	271
Auditor Location	Oakville, Ontario, Canada
Business Contact
Document Information
Entity Address, Address Line One	9160 Forum Corporate Parkway, Suite 350
Entity Address, City or Town	Fort Myers
Entity Address, State or Province	FL
Entity Address, Postal Zip Code	33905
City Area Code	647
Local Phone Number	476-1350

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Current assets
Cash	$ 46,517	$ 67,152
Trade and other receivables	6,344	1,412
Inventory	7,941	7,413
Prepaid expenses and deposits	1,222	1,148
Total current assets	62,024	77,125
Trade and other receivables		3,622
Property and equipment	899	788
Intangible assets	680	1,435
Right-of-use assets	818	1,116
Goodwill		2,689
Total assets	64,421	86,775
Current liabilities
Accounts payable and accrued liabilities	2,033	3,180
Deferred revenue	471	477
Long-term debt	523
Provisions	58	87
Derivative financial instrument	563	161
Lease liabilities	239	250
Income taxes payable	298
Total current liabilities	4,185	4,155
Long-term debt	6,651
Deferred revenue	764	875
Lease liabilities	817	1,127
Total liabilities	12,417	6,157
Shareholders' Equity
Share capital	205,825	219,579
Contributed surplus	18,704	16,986
Accumulated other comprehensive loss	16,837	4,746
Deficit	(189,362)	(160,693)
Total Shareholders' Equity	52,004	80,618
Total Liabilities and Shareholders' Equity	$ 64,421	$ 86,775

Consolidated Statements of Loss

Consolidated Statements of Loss and Comprehensive Loss - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Revenue
Recurring - non-capital	$ 4,677	$ 3,723
Capital equipment	2,004	3,150
Total revenue	6,681	6,873
Cost of sales	3,660	3,921
Gross profit	3,021	2,952
Operating expenses
Research and development	14,690	15,277
General and administrative	9,465	10,314
Selling and distribution	8,468	7,652
Impairment of goodwill	2,524
Total operating expenses	35,147	33,243
Operating Loss	32,126	30,291
Net finance (income) costs	(3,744)	303
Loss before income taxes	28,382	30,594
Income taxes	287	105
Net loss attributed to shareholders for the year	28,669	30,699
Item that may be reclassified to loss
Foreign currency translation adjustment - net of tax	(12,091)	(179)
Net loss and comprehensive loss for the year	$ 16,578	$ 30,520
Loss per share
Basic loss per common share	$ 1.38	$ 1.50
Diluted loss per common share	$ 1.38	$ 1.50

Consolidated Statements of Chan

Consolidated Statements of Changes in Shareholders' Equity - USD ($) $ in Thousands	Share capital	Contributed surplus	Accumulated other comprehensive income (loss)	Deficit	Total
Balance at the beginning at Dec. 31, 2020	$ 211,527	$ 11,250	$ 4,567	$ (129,994)	$ 97,350
Balance at the beginning (in shares) at Dec. 31, 2020	20,208,948
Net loss for the year				(30,699)	(30,699)
Cumulative translation adjustment - net of tax of $nil	$ 168	(18)	179		329
Exercise of share options	$ 992	(397)			595
Exercise of share options (in shares)	79,208
Exercise of warrants	$ 6,836	(998)			5,838
Exercise of warrants (shares)	485,161
Vesting of RSUs	$ 56	(56)
Vesting of RSUs (in shares)	2,900
Share-based compensation		7,205			7,205
Balance at the end at Dec. 31, 2021	$ 219,579	16,986	4,746	(160,693)	80,618
Balance at the end (in shares) at Dec. 31, 2021	20,776,217
Net loss for the year				(28,669)	(28,669)
Cumulative translation adjustment - net of tax of $nil	$ (15,229)	(1,228)	12,091		(4,366)
Exercise of share options	$ 443	(180)			263
Exercise of share options (in shares)	40,542
Vesting of RSUs	$ 1,032	(1,032)
Vesting of RSUs (in shares)	62,738
Share-based compensation		4,158			4,158
Balance at the end at Dec. 31, 2022	$ 205,825	$ 18,704	$ 16,837	$ (189,362)	$ 52,004
Balance at the end (in shares) at Dec. 31, 2022	20,879,497

Consolidated Statements of Ch_2

Consolidated Statements of Changes in Shareholders' Equity (Parenthetical) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Consolidated Statements of Changes in Shareholders' Equity
Cumulative translation adjustment, tax	$ 0	$ 0

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Operating activities
Net loss for the year	$ (28,669)	$ (30,699)
Adjustments to reconcile net loss to net cash flows from operating activities:
Depreciation of property and equipment	672	518
Amortization of intangible assets	704	1,029
Depreciation of right-of-use assets	228	332
Share-based compensation	4,238	7,205
Interest and accretion expense	174	67
Deferred revenue	(27)	(90)
Change in fair value of derivative financial instrument	275	(293)
Change in amortized cost of trade and other receivables	(290)	448
Impairment of goodwill	2,524
Changes in non-cash working capital balances
Trade and other receivables	(1,424)	1,996
Prepaid expenses and deposits	(157)	(78)
Inventory	(1,864)	(2,491)
Accounts payable and accrued liabilities	(566)	(356)
Provisions	(24)	(110)
Income taxes payable	311	(13)
Foreign exchange on cash	(1,905)	175
Net cash flow used in operating activities	(25,800)	(22,360)
Investing activities
Purchase of property and equipment		(32)
Purchase of intangible assets		(561)
Total cash used in investing activities		(593)
Financing activities
Proceeds from long-term debt	7,273
Long-term debt transaction costs	(149)
Payment of other liabilities		(99)
Payment of long-term debt	(44)
Proceeds from share options exercised	263	595
Proceeds from warrants exercised		5,838
Payment of lease liabilities	(312)	(386)
Total cash from financing activities	7,031	5,948
Net change in cash during the year	(18,769)	(17,005)
Foreign exchange on cash	(1,866)	244
Cash - Beginning of year	67,152	83,913
Cash - End of year	$ 46,517	$ 67,152

Description of business

Description of business	12 Months Ended
	Dec. 31, 2022
Description of business
Description of business	1 Description of business Profound Medical Corp. (Profound) and its subsidiaries (together, the Company) were incorporated under the Ontario Business Corporations Act on July 16, 2014. The Company is a medical technology company developing treatments to ablate the prostate gland, uterine fibroids, osteoid osteoma and nerves for palliative pain relief for patients with metastatic bone disease. The Company’s registered address is 2400 Skymark Avenue, Unit 6, Mississauga, Ontario, L4W 5K5, Canada.

Summary of significant accounti

Summary of significant accounting policies and basis of preparation	12 Months Ended
	Dec. 31, 2022
Summary of significant accounting policies and basis of preparation
Summary of significant accounting policies and basis of preparation	2 Summary of significant accounting policies and basis of preparation Basis of preparation The Company prepares its consolidated financial statements in accordance with International Financial Reporting Standards as issued by the International Accounting Standards Board (IFRS). The Board of Directors approved these consolidated financial statements on March 7, 2023. These consolidated financial statements comply with IFRS. Accounting policies Use of estimates and judgments The preparation of consolidated financial statements in conformity with IFRS requires the use of certain critical accounting estimates. It also requires management to exercise its judgment in the process of applying the Company’s accounting policies. The areas involving a higher degree of judgment or complexity, or areas where assumptions and estimates are significant to the consolidated financial statements are disclosed in note 3. Consolidation Subsidiaries are all entities over which the Company has control. The Company controls an entity when it is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity. The wholly owned subsidiaries are consolidated from the date control is obtained. All intercompany transactions, balances, income and expenses on transactions with the subsidiaries are fully eliminated. These consolidated financial statements include the following wholly owned subsidiaries: Profound Medical Inc. (Canada), Profound Medical Oy (Finland), Profound Medical GmbH (Germany), Profound Medical (U.S.) Inc. (United States), Profound Medical Technology Services (Beijing) Co., Ltd. (China) and 2753079 Ontario Inc. (Canada). Segment reporting Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision maker. The chief operating decision maker has been identified as the chief executive officer. Foreign currency translation The Company has a functional currency of Canadian dollars and the functional currency of each subsidiary is determined based on facts and circumstances relevant for each subsidiary. Where the Company’s presentation currency of US dollars differs from the functional currency of a subsidiary, the assets, liabilities and equity of the subsidiary are translated from the functional currency into the presentation currency at the exchange rates as at the reporting date. The income and expenses of the subsidiaries are translated at rates approximating the exchange rates at the dates of the transactions. Exchange differences arising on the translation of the financial statements of the Company’s subsidiaries are recognized in other comprehensive (income) loss. Foreign currency transactions are translated into the functional currency of the Company or its subsidiaries, using the exchange rates prevailing at the dates of these transactions. Foreign exchange gains and losses resulting from the settlement of foreign currency transactions and from the translation at year-end exchange rates of monetary assets and liabilities denominated in currencies other than an entity’s functional currency are recognized in the consolidated statements of loss and comprehensive loss, within net finance (income) costs. Financial assets The Company classifies its financial assets in the following measurement categories: ● those to be measured subsequently at fair value (either through other comprehensive income, or through profit or loss); and ● those to be measured at amortized cost. The classification depends on the Company’s business model for managing the financial assets and the contractual terms of the cash flows. The Company does not currently have any assets measured subsequently at fair value. At initial recognition, the Company measures a financial asset at its fair value plus, in the case of a financial asset not at fair value through profit or loss, transaction costs that are directly attributable to the acquisition of the financial asset. Financial assets are derecognized when the rights to receive cash flows from the financial assets have expired or have been transferred and the Company has transferred substantially all the risks and rewards of ownership. Trade and other receivables are amounts due from customers for goods sold or services performed in the ordinary course of business. They are generally due for settlement within 12 months and are therefore generally classified as current. Trade and other receivables are recognized initially at the amount of consideration that is unconditional, unless they contain significant financing components, when they are recognized at fair value. The Company holds the trade and other receivables with the objective of collecting the contractual cash flows and therefore measures them subsequently at amortized cost using the effective interest rate method. The Company reviews its expected cash flows from trade and other receivables and when the receivable extends beyond one year, the amortized cost is calculated using management’s estimate of the cash flow timing and amounts. These amounts are continually re-assessed and adjustments are made when necessary. The Company assesses on a forward-looking basis the expected credit losses associated with its financial assets carried at amortized cost. For trade and other receivables, the Company applies the simplified approach permitted by IFRS 9, Financial Instruments (IFRS 9), which requires lifetime expected credit losses to be recognized at the time of initial recognition of the receivables. Inventories Inventories are valued at the lower of cost and net realizable value. Net realizable value is the estimated selling price in the ordinary course of business less the estimated costs of completion and the estimated costs necessary to make the sale. Cost is determined using the first-in, first-out method for finished goods and weighted average cost for raw materials. Property and equipment Property and equipment are stated at cost, less accumulated depreciation and accumulated impairment losses. Cost includes expenditures that are directly attributable to the acquisition of the asset. The carrying amount of a replaced asset is derecognized when replaced. Repairs and maintenance costs are charged to the consolidated statements of loss and comprehensive loss during the year in which they are incurred. The major categories of property and equipment are depreciated on a straight-line basis as follows: ​ ​ ​ ​ Furniture and fittings 20% per year Equipment under lease ​ 50% per year Leasehold improvements over the term of the lease ​ Residual values, methods of depreciation and useful lives of the assets are reviewed annually and adjusted if appropriate. Goodwill Goodwill represents the excess fair value of the consideration transferred over the fair value of the underlying net assets in a business combination and is measured at cost less accumulated impairment losses. Goodwill is not amortized but is tested for impairment on an annual basis or more frequently if there are indications the goodwill may be impaired. For the purposes of impairment testing, goodwill is allocated to each of the Company’s cash generating units (CGUs) or group of CGUs that are expected to benefit from the synergies of the acquisition. If the recoverable amount of the CGU or group of CGUs is less than the carrying amount, the impairment loss is allocated first to reduce the carrying amount of any goodwill and then to other assets of the CGU or group of CGUs. Identifiable intangible assets The Company’s intangible assets are stated at cost, less accumulated amortization and are amortized on a straight-line basis in the consolidated statements of loss and comprehensive loss over their estimated useful lives. The major categories of intangible assets are amortized as follows: ​ ​ ​ ​ Exclusive licence agreement 20 years Software 5 years Brand 5 years Proprietary technology 5 years ​ Impairment of non-financial assets Property and equipment and intangible assets are tested for impairment when events or changes in circumstances indicate the carrying amount may not be recoverable. For the purpose of measuring recoverable amounts, assets are grouped at the lowest levels for which there are separately identifiable cash flow CGUs. The recoverable amount is the higher of an asset’s fair value, less costs of disposal and value in use (which is the present value of the expected future cash flows of the relevant asset or CGU). An impairment loss is recognized as the amount by which the asset’s carrying amount exceeds its recoverable amount. The Company evaluates impairment losses for potential reversals when events or circumstances warrant such consideration. Accounts payable and accrued liabilities These amounts represent liabilities for goods and services provided to the Company before the end of the financial year, which are unpaid. Accounts payable and accrued liabilities are presented as current liabilities unless payment is not due within 12 months after the reporting period. They are recognized initially at their fair value and subsequently measured at amortized cost using the effective interest method. Long-term debt Long-term debt is initially recognized at fair value, net of transaction costs incurred. Long-term debt is subsequently measured at amortized cost. Any difference between the proceeds (net of transaction costs) and the redemption amount is recognized in the consolidated statements of loss and comprehensive loss over the period of the long-term debt using the effective interest method. Long-term debt is removed from the consolidated balance sheets when the obligation specified in the contract is discharged, cancelled or expired. The difference between the carrying amount of a financial liability that has been extinguished and the consideration paid is recognized in the consolidated statements of loss and comprehensive loss within net finance (income) costs. Provisions A provision is recognized when the Company has a legal or constructive obligation as result of a past event, it is probable that an outflow of economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation. If the effect is material, provisions are determined by discounting the expected future cash flows at a pre-tax rate that reflects current market assessments of the time value of money and, where appropriate, the risks specific to the liability. Leases At inception of a contract, the Company assesses whether a contract is, or contains, a lease based on whether the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. The Company recognizes a right-of-use asset and a lease liability at the lease commencement date. The right-of-use asset is initially measured based on the initial amount of the lease liability adjusted for any lease payments made at or before the commencement date, plus any initial direct costs incurred and an estimate of costs to dismantle and remove the underlying asset or to restore the underlying asset or the site on which it is located, less any lease incentives received. The assets are depreciated to the earlier of the end of the useful life of the right-of-use asset or the lease term using the straight-line method as this most closely reflects the expected pattern of consumption of the future economic benefits. The lease term includes periods covered by an option to extend if the Company is reasonably certain to exercise that option. Lease terms range from three to ten years for offices. In addition, the right-of-use asset is periodically reduced by impairment losses, if any, and adjusted for certain remeasurements of the lease liability. The lease liability is initially measured at the present value of the lease payments that are not paid at the commencement date, discounted using the interest rate implicit in the lease or, if that rate cannot be readily determined, the Company's incremental borrowing rate. The lease liability is measured at amortized cost using the effective interest method. It is remeasured when there is a change in future lease payments arising from a change in an index or rate, if there is a change in the Company's estimate of the amount expected to be payable under a residual value guarantee, or if the Company changes its assessment of whether it will exercise a purchase, extension or termination option. When the lease liability is remeasured in this way, a corresponding adjustment is made to the carrying amount of the right-of-use asset, or is recorded in profit or loss if the carrying amount of the right-of-use asset has been reduced to zero. Revenue To determine revenue recognition for arrangements the Company performs the following five steps: (i) identify the contract(s) with a customer; (ii) identify the performance obligations in the contract; (iii) determine the transaction price; (iv) allocate the transaction price to the performance obligations in the contract; and (v) recognize revenue when (or as) the entity satisfies a performance obligation. The Company only applies the five-step model to contracts when it is probable that the entity will collect the consideration it is entitled to in exchange for the goods or services it transfers to the customer. The Company derives its revenues primarily from the lease and sale of medical devices and the sale of certain one-time-use devices. Capital equipment consists of one-time revenue for the sale of capital equipment including installation fees. Recurring - non-capital revenue consists of the sale of one-time-use devices, lease of medical devices, procedures and services associated with extended warranties. Revenue is recognized when a contractual promise to a customer (performance obligation) has been fulfilled by transferring control over the promised goods or services, generally at the point in time of shipment to or receipt of the products by the customer or when the services are performed. When contracts contain customer acceptance provisions, revenue is recognized on the satisfaction of the specific acceptance criteria. The amount of revenue to be recognized is based on the consideration the Company expects to receive in exchange for its goods and services. For contracts that contain multiple performance obligations, the Company allocates the consideration to which it expects to be entitled to each performance obligation based on relative standalone selling prices and recognizes the related revenue when or as control of each individual performance obligation is transferred to customers. Service revenue related to installation and training is recognized over the period in which the services are performed. Service revenue related to extended warranty service is deferred and recognized on a straight-line basis over the extended warranty period covered by the respective customer contract. Cost of sales Cost of sales primarily includes the cost of finished goods, depreciation of equipment under lease, inventory provisions, royalties, warranty expense, freight and direct overhead expenses necessary to acquire or manufacture the finished goods. Income taxes Income taxes are accounted for using the liability method. Deferred tax assets and liabilities are recognized for the differences between the tax basis and carrying amounts of assets and liabilities, for operating losses and for tax credit carry-forwards. Deferred tax assets are recognized to the extent that it is probable that future taxable income will be available against which temporary differences can be utilized. Deferred tax assets and liabilities are measured using enacted or substantively enacted tax rates and laws. Share-based compensation The Company grants share options periodically to certain employees, directors, officers and advisers. Options currently outstanding vest over four years and have a contractual life of ten years . Each tranche in an award is considered a separate award with its own vesting period and grant date fair value. The fair value of each tranche is measured at the date of grant using the Black-Scholes option pricing model. Compensation expense is recognized over the tranche's vesting period using the graded vesting method by increasing contributed surplus based on the number of awards expected to vest. The Company has a long-term incentive plan (LTIP). For each Restricted Share Unit (RSU) and Deferred Share Unit (DSU) granted under the long-term incentive plan, the Company recognizes an expense equal to the market value of a Profound common share at the date of grant based on the number of RSUs and DSUs expected to vest, recognized over the term of the vesting period, with a corresponding credit to contributed surplus for share-based compensation anticipated to be equity settled or a corresponding credit to a liability for those anticipated to be cash settled. Share-based compensation expense is adjusted for subsequent changes in management’s estimate of the number of RSUs or DSUs that are expected to vest, for RSUs or DSUs anticipated to be cash settled and changes in the market value of Profound common shares. The effect of these changes is recognized in the period of the change. Vested RSUs are settled either in Profound common shares or in cash or a combination thereof at the discretion of the Company. Vested DSUs are settled either in Profound common shares or in cash or a combination thereof at the discretion of the holder. The value of the DSUs is recognized in accounts payable and accrued liabilities in the consolidated balance sheet and a corresponding expense is recognized over the estimated vesting period of three years. Research and development costs Research costs are charged to expense as incurred. Development costs are capitalized and amortized when the criteria for capitalization are met, otherwise they are expensed as incurred. No development costs have been capitalized to date. Clinical trial expenses result from obligations under contracts with vendors, consultants and clinical site agreements in connection with conducting clinical trials. The financial terms of these contracts are subject to negotiations, which vary from contract to contract and may result in payment flows that do not match the periods over which materials or services are provided to the Company. The appropriate level of clinical trial expenses is reflected in the Company’s consolidated financial statements by matching period expenses with period services and efforts expended. These expenses are recorded according to the progress of the clinical trial as measured by patient progression and the timing of various aspects of the clinical trial. Clinical trial accrual estimates are determined through discussions with internal clinical personnel and outside service providers as to the progress or state of completion of clinical trials, or the services completed. Service provider status is then compared to the contractually obligated fees to be paid for such services. During the course of a clinical trial, the Company may adjust the rate of clinical expense recognized if actual results differ from management’s estimates. Government grants The Company recognizes government grants when there is reasonable assurance that the Company will comply with the conditions of the grant and the grant will be received. Government grants receivable are recorded in accounts receivable on the consolidated statements of financial position. The Company recognizes government grants in the consolidated statements of loss and comprehensive loss in the same period as the expenses for which the grant is intended to compensate and nets the amount off the related expenses. In cases where a government grant becomes receivable as compensation for expenses already incurred in prior periods, the grant is recognized in profit or loss in the period in which it becomes receivable. Loss per share Basic loss per share is calculated by dividing the net loss by the weighted average number of common shares outstanding during the year. Diluted loss per share is calculated by dividing the applicable net loss by the sum of the weighted average number of shares outstanding during the year and all additional common shares that would have been outstanding if potentially dilutive common shares had been issued during the year. COVID-19 The COVID-19 outbreak has been declared a pandemic by the World Health Organization. COVID-19 is altering business and consumer activity in affected areas and beyond. The global response to the COVID-19 pandemic has resulted in, among other things, border closures, severe travel restrictions, the temporary shut-down of non-essential services and extreme fluctuations in financial and commodity markets. Additional measures may be implemented by one or more governments in jurisdictions where the Company operates. These measures have caused material disruption to businesses globally, resulting in an economic slowdown. To date, the economic downturn and uncertainty caused by the COVID-19 pandemic and global measures undertaken to contain its spread have affected all of the Company’s operations to some extent and, in particular, have caused volatility in demand for the TULSA-PRO ® and SONALLEVE ® systems and the one-time-use devices related thereto. This has resulted in a reduction in anticipated sales and led to delays in the Company’s expectations regarding the rate at which agreements for new system user sites will be entered into and when user sites will become operational for the initiation of patient treatments. Despite the COVID-19 pandemic, patient treatments are continuing and Profound continues to identify potential new system user sites. The financial impacts from COVID-19 during the year has affected Profound’s ability to collect payments due to continuous lockdowns and hospital restrictions, which have impeded our efforts to install our systems and has delayed corresponding collections. It has also impeded our efforts concerning the sale of SONALLEVE ® systems. Profound continues to work with local authorities and team members located within these countries to help expedite the process.

Critical accounting estimates a

Critical accounting estimates and judgments	12 Months Ended
	Dec. 31, 2022
Critical accounting estimates and judgments
Critical accounting estimates and judgments	3 Critical accounting estimates and judgments Critical accounting estimates The Company makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are addressed as follows: ● Impairment of non-financial assets The Company reviews amortized non-financial assets for impairment whenever events or changes in circumstances indicate the carrying amount of the assets may be impaired. It also reviews goodwill annually for impairment. If the recoverable amount of the respective non-financial asset is less than its carrying amount, it is considered to be impaired. In the process of measuring the recoverable amount, management makes assumptions about future events and circumstances. The actual results may vary and may cause significant adjustments. ● Trade and other receivables The key judgements and estimates used in determining the amortized cost for trade and other receivables are the estimated collection period and the discount rate applied to the cash flow projections (note 4).

Trade and other receivables

Trade and other receivables	12 Months Ended
	Dec. 31, 2022
Trade and other receivables
Trade and other receivables	4 Trade and other receivables The trade and other receivables balance comprises the following: ​ ​ ​ ​ ​ ​ ​ 2022 2021 ​ ​ $ ​ $ ​ ​ ​ ​ ​ Trade receivables 5,837 ​ 4,592 Indirect tax receivables 494 ​ 407 Other receivables 13 ​ 35 Total trade and other receivables 6,344 ​ 5,034 Less: Current portion ​ 6,344 ​ 1,412 Long-term portion ​ — ​ 3,622 ​ Trade receivables past due represents amounts not collected beyond the customer’s contractual terms. The Company applies the simplified approach to provide for expected credit losses prescribed by IFRS 9, which permits the use of the lifetime expected loss provision for all trade receivables. At December 31, 2022 and 2021 there were no trade receivables that were past due. Management continually reviews the future cash flows used in the calculation of the amortized cost of its trade and other receivables. Due to the ongoing COVID-19 pandemic and access to customer locations, certain trade and other receivables are expected to have a longer repayment term due to the payment term being based on installation of the device. The revised future cash flows have been used to calculate amortized cost. During the year ended December 31, 2021, the key assumptions and estimates used in determining the amortized cost are based on a two year collection period and a discount rate of 6% , both of which required the application of significant judgement. The collection period and the significant judgement applied does not impact the credit risk of the associated trade and other receivables. The Company recognized $290 interest income for the year ended December 31, 2022 (2021 – $448 interest expense) as a result of this adjustment. Those trade and other receivables that are anticipated to be collected after one year are classified as non-current.

Inventory

Inventory	12 Months Ended
	Dec. 31, 2022
Inventory
Inventory	5 Inventory ​ ​ ​ ​ ​ ​ ​ 2022 2021 ​ ​ $ ​ $ ​ ​ ​ ​ ​ Finished goods 5,455 5,114 Raw materials 2,491 2,306 Inventory provision (5) (7) Total inventory 7,941 7,413 ​ During the year ended December 31, 2022, $2,101 (2021 - $3,547) of inventory was recognized in cost of sales. The Company decreased its inventory provision by $2 during the year ended December 31, 2022 (2021 – $7 ). There were no other inventory writedowns charged to cost of sales during the year ended December 31, 2022.

Property and equipment

Property and equipment	12 Months Ended
	Dec. 31, 2022
Property and equipment
Property and equipment	6 Property and equipment ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Furniture ​ ​ ​ ​ ​ ​ ​ ​ and ​ Leasehold ​ Equipment ​ ​ ​ ​ fittings ​ improvements ​ under lease ​ Total ​ $ $ $ $ Year ended December 31, 2021 Opening net book value 12 313 534 859 Additions ​ — ​ 32 ​ 408 ​ 440 Foreign exchange (2) 1 8 7 Depreciation (10) (60) (448) (518) Closing net book value — 286 502 788 ​ ​ ​ ​ ​ ​ ​ ​ ​ At December 31, 2021 ​ ​ ​ ​ Cost 127 578 1,077 1,782 Accumulated depreciation (127) (292) (575) (994) Net book value — 286 502 788 ​ ​ ​ ​ ​ ​ ​ ​ ​ Year ended December 31, 2022 ​ ​ ​ ​ Opening net book value — 286 502 788 Additions ​ — ​ — ​ 800 ​ 800 Foreign exchange — (15) (2) (17) Depreciation — (59) (613) (672) Closing net book value — 212 687 899 ​ ​ ​ ​ ​ ​ ​ ​ ​ At December 31, 2022 ​ ​ ​ ​ Cost — 542 1,835 2,377 Accumulated depreciation — (330) (1,148) (1,478) Net book value — 212 687 899 ​

Intangible assets

Intangible assets	12 Months Ended
	Dec. 31, 2022
Intangible assets
Intangible assets	7 Intangible assets ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Exclusive ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ licence ​ ​ ​ Proprietary ​ ​ ​ ​ ​ ​ agreement ​ Software ​ technology ​ Brand ​ Total ​ $ $ $ $ $ Year ended December 31, 2021 Opening net book value 186 362 1,128 222 1,898 Additions — 561 — — 561 Foreign exchange ​ 1 ​ (5) ​ 7 ​ 2 ​ 5 Amortization (22) (148) (718) (141) (1,029) Closing net book value 165 770 417 83 1,435 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ As at December 31, 2021 ​ ​ ​ ​ ​ Cost 231 978 3,456 681 5,346 Accumulated amortization (66) (208) (3,039) (598) (3,911) Net book value 165 770 417 83 1,435 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Year ended December 31, 2022 ​ ​ ​ ​ ​ Opening net book value 165 770 417 83 1,435 Foreign exchange ​ (5) ​ (32) ​ (10) ​ (4) ​ (51) Amortization (25) (193) (407) (79) (704) Closing net book value 135 545 — — 680 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ As at December 31, 2022 ​ ​ ​ ​ ​ Cost 231 978 3,456 681 5,346 Accumulated amortization (96) (433) (3,456) (681) (4,666) Net book value 135 545 — — 680 ​ The Company has a licence agreement (the licence) with Sunnybrook Health Sciences Centre (Sunnybrook), pursuant to which Sunnybrook licenses to the Company certain intellectual property. Pursuant to the licence, the Company has exclusively licenced-in rights that enable the Company to use Sunnybrook’s technology for MRI-guided trans-urethral ultrasound therapy. The Company has the option to acquire rights to improvements to the relevant technology and intellectual property. If the Company fails to comply with any of its obligations or otherwise breaches this agreement, Sunnybrook may have the right to terminate the licence. In accordance with the Company’s accounting policy, the carrying value of goodwill is assessed annually as well as assessed for impairment triggers at each reporting date to determine whether there exists any indicators of impairment. When there is an indicator of impairment of non-current assets within a CGU or group of CGUs containing goodwill, the Company tests the non-current assets for impairment first and recognizes any impairment loss on goodwill before applying any remaining impairment loss against the non-current assets within the CGU. In early 2020, in response to the outbreak of the COVID-19 pandemic as declared by the WHO, nations and countries announced mandated closure of public facilities, non-essential businesses and non-essential hospital service. Consequently, Profound had to temporarily delay procedures and were restricted from visiting hospitals, resulting in material decreases in revenues and forecasts. Increasing concerns over the new highly transmissible Omicron COVID-19 variant and increased daily COVID-19 case counts led to severe shutdowns and restrictions in several Asian countries that materially affected operations in these countries affecting our revenues and trade receivables. These governments imposed further restrictions leading to curfews, movement restrictions and minimum quarantine periods. The Company completed its annual goodwill impairment testing on the goodwill related to the Sonalleve MR-HIFU CGU, which comprises all of the goodwill of the Company, on December 31, 2022. The recoverable amount of the Sonalleve MR-HIFU CGU was calculated using fair value less costs of disposal (FVLCD). The calculation of the recoverable amount of the Sonalleve MR-HIFU CGU was determined using discounted cash flow projections based on financial forecasts approved by management covering a four-year period (Level 3 of the fair value hierarchy) and a terminal growth assumption of 2% . The key assumptions and estimates used in determining the FVLCD are related to revenue and EBITDA assumptions, dependent on economic conditions and other events which are based on the financial forecast and assumed growth rates and the discount rate of 18% applied to the cash flow projections. As the return to business in China continues to be delayed as a result of actions outside of the control of management, including ongoing government restrictions impacting the re-opening of hospitals and clinics and delays in the vaccine roll out, management's estimates of operating results and further cash flows for the forecasted periods have been negatively impacted. As a result of the impairment test performed, it was determined that the goodwill was impaired and the Company recognized an impairment of $2,524 , representing all of the Company’s goodwill. There are no other non-current assets allocated to the Sonalleve MR-HIFU CGU and therefore the impairment was only related to the remaining goodwill. No reasonable change in assumptions would change the outcome of the impairment test. ​ ​ ​ ​ Goodwill $ ​ ​ ​ As at January 1, 2021 2,678 Foreign exchange 11 As at December 31, 2021 2,689 Foreign exchange (165) Impairment (2,524) As at December 31, 2022 — ​

Right-of-use assets

Right-of-use assets	12 Months Ended
	Dec. 31, 2022
Right-of-use assets
Right-of-use assets	8 Right-of-use assets ​ ​ ​ ​ ​ ​ Leased ​ premises ​ ​ $ Year ended December 31, 2021 Opening net book value 1,424 Addition ​ 18 Foreign exchange 6 Depreciation (332) Closing net book value 1,116 ​ ​ ​ As at December 31, 2021 ​ Cost 1,918 Accumulated depreciation (802) Net book value 1,116 ​ ​ ​ Year ended December 31, 2022 ​ Opening net book value 1,116 Foreign exchange (70) Depreciation (228) Closing net book value 818 ​ ​ ​ As at December 31, 2022 ​ Cost 1,679 Accumulated depreciation (861) Net book value 818 ​ The Company leases office premises in Mississauga, Canada and China, Beijing. These lease agreements are typically entered into for three to ten-year periods.

Long-term debt

Long-term debt	12 Months Ended
	Dec. 31, 2022
Long-term debt
Long-term debt	9 Long-term debt On November 3, 2022, the Company signed a term loan agreement with CIBC Innovation Banking (CIBC) to provide a secured loan for total gross proceeds of C $10,000 maturing on November 3, 2027 with an interest rate based on prime plus 2% . The Company is required to make interest only payments until October 31, 2023 with monthly repayments of the principal of C $208 plus accrued interest commencing on October 31, 2023. All obligations of the Company under the term loan agreement were guaranteed by current and future subsidiaries of the Company and included security of first priority interests in the assets of the Company and its subsidiaries. The Company has financial covenants in relation to the CIBC loan where unrestricted cash is at all times greater than EBITDA for the most recent six month period, reported on a monthly basis and that revenue for any fiscal quarter must be 15% greater than revenue for the same fiscal quarter in the prior fiscal year, reported on a quarterly basis. The Company is in compliance with these financial covenants as at December 31, 2022. Future compliance with the financial covenants included in the CIBC loan is dependent upon achieving certain revenue, EBITDA, and anticipated cash levels. Management considers there is a potential for a breach of these covenants in 2023 due to the volatility and unpredictability of revenues. ​ ​ ​ ​ ​ 2022 ​ ​ $ ​ ​ ​ Balance – Beginning of year ​ — Proceeds received, net ​ 7,124 Fair value of warrants ​ (129) Interest and accretion expense ​ 115 Foreign exchange ​ 108 Repayment ​ (44) Balance – End of year ​ 7,174 Less: Current portion ​ 523 Long-term portion ​ 6,651 ​ In connection with this term loan agreement on November 3, 2022, the Company also issued 47,287 common share purchase warrants to CIBC, with each warrant entitling the holder to acquire one common share at a price of C $5.29 per common share until the date that is 10 years from the closing of the term loan agreement, with a cashless exercise feature (note 11). The cashless exercise feature causes the conversion ratio to be variable and the warrants are therefore classified as a financial liability. Gains and losses on the warrants are recorded within net finance (income) costs on the consolidated statements of loss and comprehensive loss. A pricing model with observable market based inputs was used to estimate the fair value of the warrants issued. The estimated fair value of the warrants as at December 31, 2022 was $418 . The variables used to determine the fair values are as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, ​ November 3, ​ ​ ​ ​ 2022 ​ ​ 2022 ​ ​ ​ ​ ​ ​ ​ ​ ​ Share price C$ 14.48 C$ 5.38 ​ Volatility ​ 70 % ​ 72 % Expected life of warrants ​ 6.9 years ​ 7 years Risk free interest rate ​ 3.30 % ​ 3.42 % Dividend yield ​ — ​ — ​ ​ In connection with the July 30, 2018 CIBC term loan agreement which was previously repaid, the Company also issued 32,171 common share purchase warrants to CIBC, with each warrant entitling the holder to acquire one common share at a price of C$ 9.70 per common share until the date that is 60 months from the closing of the term loan agreement, with a cashless exercise feature. The cashless exercise feature causes the conversion ratio to be variable and the warrants are therefore classified as a financial liability. Gains and losses on the warrants are recorded within net finance (income) costs on the consolidated statements of loss and comprehensive loss. A pricing model with observable market based inputs was used to estimate the fair value of the warrants issued. The estimated fair value of the warrants as at December 31, 2022 was $145 (2021 - $161 ). The variables used to determine the fair values are as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2022 ​ 2021 ​ ​ ​ ​ ​ ​ ​ ​ ​ Share price C$ 14.48 C$ 14.26 ​ Volatility ​ 84 % ​ 61 % Expected life of warrants ​ 0.6 years ​ 1.6 years Risk free interest rate ​ 4.07 % ​ 0.94 % Dividend yield ​ — ​ — ​ ​

Lease liabilities

Lease liabilities	12 Months Ended
	Dec. 31, 2022
Lease liabilities
Lease liabilities	10 Lease liabilities ​ ​ ​ ​ ​ $ As at January 1, 2021 1,676 Repayments (386) Foreign exchange 2 Addition 18 Interest and accretion expense ​ 67 As at December 31, 2021 ​ 1,377 Repayments ​ (312) Foreign exchange ​ (68) Interest and accretion expense ​ 59 As at December 31, 2022 1,056 Less: Current portion 239 Long-term portion 817 ​

Share capital

Share capital	12 Months Ended
	Dec. 31, 2022
Share capital
Share capital	11 Share capital Common shares The Company is authorized to issue an unlimited number of common shares. Issued and outstanding (with no par value) ​ ​ ​ ​ ​ ​ ​ 2022 2021 ​ ​ $ ​ $ ​ ​ ​ ​ ​ 20,879,497 (2021 – 20,776,217 ) common shares 205,825 219,579 ​ Warrants A summary of warrants outstanding is shown below: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted ​ ​ ​ ​ Weighted ​ average ​ ​ ​ ​ average ​ remaining ​ ​ ​ ​ exercise ​ contractual ​ ​ Number of ​ price ​ life ​ warrants C$ (years) ​ ​ ​ ​ ​ ​ ​ Balance – January 1, 2021 1,223,744 14.35 1.68 Expired (13,600) 15.50 — Exercised (485,161) 15.33 0.32 Balance – December 31, 2021 ​ 724,983 ​ 13.81 ​ 1.23 Granted 47,287 5.29 9.80 Balance – December 31, 2022 772,270 13.29 0.82 ​ Subsequent to year end, there were 31,535 warrants exercised for total cash proceeds of $326 . ​

Share-based payments

Share-based payments	12 Months Ended
	Dec. 31, 2022
Share-based payments
Share-based payments	12 Share-based payments Share options Effective May 20, 2020, the Company adopted amendments to the share option plan (the Share Option Plan). The maximum number of common shares reserved for issuance under the share option plan and the long term incentive plan is 2,714,335 common shares or such other number as may be approved by the holders of the voting shares of the Company. As at December 31, 2022, 1,511,773 (2021 – 2,092,596 ) options are outstanding. Each share option granted allows the holder to purchase one common share, at an exercise price not less than the lesser of the closing trading price of the common shares on the TSX (or other exchange where the common shares are listed), on the date a share option is granted and the volume-weighted average price of the common shares for the five trading days immediately preceding the date the share option is granted. Share options granted under the Share Option Plan generally have a maximum term of ten years and vest over a period of up to four years . A summary of the share option changes during the year presented and the total number of share options outstanding as at those dates are set forth below: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted ​ ​ ​ ​ average ​ ​ ​ ​ exercise ​ ​ Number ​ price ​ of options C$ ​ ​ ​ ​ ​ Balance – January 1, 2021 1,522,362 14.05 Granted 698,035 22.21 Exercised (79,208) 9.72 Forfeited/expired (48,593) 15.46 Balance – December 31, 2021 2,092,596 16.90 Granted 29,200 9.65 Exercised (40,542) 8.45 Forfeited/expired (569,481) 17.49 Balance – December 31, 2022 1,511,773 16.07 ​ The Company estimated the fair value of the share options granted during the year using the Black-Scholes option pricing model with the weighted average assumptions below. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ August 15, ​ December 20, ​ 2022 2022 ​ Exercise price ​ C$ 9.20 ​ C$ 12.46 ​ Expected volatility ​ 68 % 71 % Expected life of options ​ 6 years 6 years Risk-free interest rate ​ 2.76 % 2.95 % Dividend yield ​ — ​ — ​ Number of share options issued ​ 25,200 ​ 4,000 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ November 15, ​ December 30, ​ ​ 2021 2021 Exercise price ​ C$ 14.96 ​ C$ 14.90 ​ Expected volatility ​ 84 % 84 % Expected life of options ​ 6 years 6 years Risk-free interest rate ​ 1.54 % 1.69 % Dividend yield ​ — ​ — ​ Number of share options issued ​ 24,500 ​ 105,071 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ March 11, ​ May 21, ​ June 17, ​ ​ 2021 ​ 2021 2021 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Exercise price ​ C$ 28.16 ​ C$ 22.08 ​ C$ 23.14 ​ Expected volatility ​ ​ 84 % 85 % 85 % Expected life of options ​ ​ 6 years 6 years 6 years Risk-free interest rate ​ ​ 1.09 % 1.34 % 1.25 % Dividend yield ​ ​ — ​ — ​ — ​ Number of share options issued ​ ​ 12,000 ​ 555,464 ​ 1,000 ​ ​ The following table summarizes information about the share options outstanding as at December 31, 2022: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted ​ ​ ​ ​ ​ ​ average ​ ​ ​ ​ Number of ​ remaining ​ Number of Exercise price ​ options ​ contractual ​ options C$ ​ outstanding ​ life (years) ​ exercisable ​ ​ ​ ​ ​ ​ ​ 2.01 – 4.00 1,800 0.46 1,800 8.01 – 10.00 349,697 4.56 297,383 10.01 – 12.00 121,262 5.42 109,018 12.01 – 14.00 12,300 6.80 — 14.01 – 16.00 148,281 6.27 129,284 16.01 – 18.00 435,189 7.42 59,086 20.01 – 22.00 600 7.63 229,319 22.01 – 24.00 430,744 8.27 171,735 24.01 – 26.00 ​ 1,900 ​ 7.93 ​ 1,152 28.01 – 30.00 ​ 10,000 ​ 8.20 ​ 196 ​ ​ 1,511,773 ​ 6.98 ​ 998,973 ​ Compensation expense related to share options for the year ended December 31, 2022 was $2,514 (2021 - $5,891 ). Long-term incentive plan Effective May 20, 2020, the Company adopted the long term incentive plan (the LTIP). The LTIP is an incentive-based equity compensation plan that provides for the grant of restricted share units (the RSUs) and deferred share units (the DSUs, together with the RSUs, the Units). The Company may grant Units to officers, directors, employees or consultants of the Company. Each Unit represents the right to receive one common share in accordance with the terms of the LTIP. The number of Units granted at any particular time will be calculated by dividing the dollar amount of such grant by the market value of a common share on the applicable grant date, which is equal to the volume weighted average trading price of all common shares traded on the TSX (or other exchange where the Common Shares are listed) for the five trading days immediately preceding such date. RSUs granted under the LTIP vest over a period of up to three years and DSUs vest on the date on which the participant ceases to be a director or employee of the Company. During the year ended December 31, 2022, there were 60,000 DSU granted and outstanding . Share-based compensation expense related to the LTIP for the year ended December 31, 2022 was $1,724 (2021 - $1,314 ). During the year ended December 31, 2022 the Company authorized for issuance under the LTIP a total of 385,083 RSUs with market prices between C$ 9.41 and C$ 10.93 with vesting terms over 3 years . A summary of the RSU changes during the year are set forth below: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted ​ ​ ​ ​ average ​ ​ ​ ​ remaining ​ Number of contractual ​ ​ RSUs ​ life (years) ​ ​ ​ ​ ​ Balance – January 1, 2021 8,717 ​ 2.39 Granted 241,500 ​ 3.00 Vested (2,900) ​ — Forfeited ​ (15,000) ​ 2.39 Balance – December 31, 2021 ​ 232,317 ​ 2.45 Granted ​ 385,083 ​ 3.00 Vested ​ (62,738) ​ — Forfeited ​ (110,801) ​ 2.14 Balance – December 31, 2022 443,861 ​ 2.38 ​

Revenue

Revenue	12 Months Ended
	Dec. 31, 2022
Revenue
Revenue	13 Revenue ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Year ended December 31, ​ ​ ​ 2022 ​ 2021 ​ ​ ​ $ ​ $ ​ ​ Contracts ​ ​ ​ ​ ​ Contracts ​ ​ ​ ​ ​ ​ with ​ ​ ​ ​ ​ with ​ ​ ​ ​ ​ customers ​ Leasing ​ Total customers Leasing Total ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Capital equipment ​ 2,004 ​ — ​ 2,004 ​ 3,150 ​ — ​ 3,150 ​ Recurring - non-capital ​ 3,967 ​ 710 ​ 4,677 ​ 3,293 ​ 430 ​ 3,723 ​ ​ ​ 5,971 ​ 710 ​ 6,681 ​ 6,443 ​ 430 ​ 6,873 ​ ​

Nature of expenses

Nature of expenses	12 Months Ended
	Dec. 31, 2022
Nature of expenses
Nature of expenses	14 Nature of expenses ​ ​ ​ ​ ​ ​ ​ 2022 2021 ​ ​ $ ​ $ ​ ​ ​ ​ ​ Production and manufacturing costs ​ 2,397 ​ 2,738 Salaries and benefits ​ 14,942 ​ 12,835 Consulting fees ​ 4,146 ​ 4,076 Research and development expenses ​ 2,839 ​ 3,358 Impairment of goodwill ​ 2,524 ​ — Sales and marketing expenses ​ 1,711 ​ 1,127 Amortization and depreciation ​ 1,604 ​ 1,879 Share-based compensation ​ 4,238 ​ 7,205 Rent ​ 496 ​ 250 Software/hardware ​ 1,003 ​ 619 Insurance ​ 1,239 ​ 1,397 Office and shop supplies ​ 683 ​ 415 Other expenses ​ 985 ​ 1,265 ​ ​ 38,807 ​ 37,164 ​ Certain comparative figures have been reclassified to conform with current year presentation.

Net finance (income) costs

Net finance (income) costs	12 Months Ended
	Dec. 31, 2022
Net finance (income) costs
Net finance (income) costs	15 Net finance (income) costs ​ ​ ​ ​ ​ ​ ​ 2022 2021 ​ ​ $ ​ $ ​ ​ ​ ​ ​ Change in fair value of derivative financial instrument ​ 275 ​ (293) Lease liability interest expense (note 10) ​ 59 ​ 67 Interest income ​ (803) ​ (205) Change in amortized cost of trade and other receivables (note 4) ​ (290) ​ 448 CIBC loan interest expense (note 9) ​ 115 ​ — Foreign exchange loss /(gain) ​ (3,100) ​ 286 ​ ​ (3,744) ​ 303 ​

Income taxes

Income taxes	12 Months Ended
	Dec. 31, 2022
Income taxes
Income taxes	16 Income taxes Income tax expense differs from the tax recovery amount that would be obtained by applying the statutory income tax rate to the respective year’s loss before income taxes as follows: ​ ​ ​ ​ ​ ​ ​ 2022 2021 ​ ​ $ ​ $ ​ ​ ​ ​ ​ Loss before income taxes ​ 28,382 30,594 ​ ​ ​ ​ ​ Recovery based on combined federal and provincial statutory rate of 25.48% (2021 – 25.48% ) ​ (7,232) (7,795) Permanent differences ​ 1,082 1,608 Change in deferred tax assets not recognized ​ 6,440 6,287 Effect of tax rates in foreign jurisdictions ​ (3) 5 Net income tax expense ​ 287 ​ 105 ​ Deferred tax assets are recognized for tax loss carry-forwards and unused tax credits to the extent that the realization of the related tax benefit through future taxable profits is probable. The Company has not recognized deferred tax assets that can be carried forward against future taxable income. Permanent differences are primarily comprised of non-refundable tax credits and deductible finance fees not recorded in the consolidated statements of loss and comprehensive loss, offset by non-deductible share-based compensation and accretion expense. The Company has non-capital loss carry-forwards of approximately $112,075 as at December 31, 2022 that expire in varying amounts from 2028 to 2042. The Company has SR&ED expenditures of approximately $15,380 as at December 31, 2022, which can be carried forward indefinitely to reduce future years’ taxable income. The Company has approximately $3,259 of federal and provincial tax credits that are available to be applied against federal and provincial taxes otherwise payable in future years and that expire in varying amounts from 2028 to 2042.

Loss per share

Loss per share	12 Months Ended
	Dec. 31, 2022
Loss per share
Loss per share	17 Loss per share The following table shows the calculation of basic and diluted loss per share: ​ ​ ​ ​ ​ ​ ​ ​ ​ 2022 2021 ​ ​ ​ ​ ​ ​ ​ Net loss for the year ​ $ 28,669 ​ $ 30,699 Weighted average number of common shares ​ 20,829,861 ​ 20,464,168 Basic and diluted loss per share ​ $ 1.38 ​ $ 1.50 ​ The computation of diluted loss per share is equal to the basic loss per share due to the anti-dilutive effect of the share options, RSUs, DSUs and warrants. Of the 1,511,773 (2021 – 2,092,596 ) share options, 443,681 (2021 – 232,317 ) RSUs, 60,000 (2021 – nil ) DSUs and 772,270 (2021 – 724,983 ) warrants not included in the calculation of diluted loss per share for the year ended December 31, 2022, 1,771,243 (2021 – 1,510,396 ) were exercisable.

Financial assets and liabilitie

Financial assets and liabilities	12 Months Ended
	Dec. 31, 2022
Financial assets and liabilities
Financial assets and liabilities	18 Financial assets and liabilities Classification of financial instruments ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2022 ​ ​ ​ Financial ​ ​ Fair value ​ Financial ​ liabilities ​ ​ through ​ assets at ​ at ​ ​ profit or ​ amortized ​ amortized ​ ​ loss ​ cost ​ cost ​ ​ $ ​ $ ​ $ ​ ​ ​ ​ ​ ​ ​ Cash ​ — ​ 46,517 ​ — Trade and other receivables ​ — ​ 6,344 ​ — Accounts payable and accrued liabilities ​ — ​ — ​ 2,033 Lease liabilities ​ — ​ — ​ 1,056 Derivative financial instrument ​ 563 ​ — ​ — Long-term debt ​ — ​ — ​ 7,174 ​ ​ 563 ​ 52,861 ​ 10,263 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2021 ​ ​ ​ Financial ​ ​ Fair value ​ Financial ​ liabilities ​ ​ through ​ assets at ​ at ​ ​ profit or ​ amortized ​ amortized ​ ​ loss ​ cost ​ cost ​ ​ $ ​ $ ​ $ ​ ​ ​ ​ ​ ​ ​ Cash ​ — ​ 67,152 ​ — Trade and other receivables ​ — ​ 5,034 ​ — Accounts payable and accrued liabilities ​ — ​ — ​ 3,180 Lease liabilities ​ — ​ — ​ 1,377 Derivative financial instrument ​ 161 ​ — ​ — ​ ​ 161 ​ 72,186 ​ 4,557 ​ Credit risk Credit risk is the risk of a financial loss to the Company if a counterparty to a financial instrument fails to meet its contractual obligation. The Company is exposed to credit risk on its cash and trade and other receivable balances. The Company’s cash management policies include ensuring cash is deposited in Canadian chartered banks. The Company applies the IFRS 9 simplified approach to measuring expected credit losses, which uses a lifetime expected loss allowance for all trade and other receivables. To measure the expected credit losses, trade and other receivables are grouped based on shared credit risk characteristics and the days past due. On that basis, the loss allowance as at December 31, 2022 and 2021 is nominal as the Company only transacts with hospitals and private clinics and has not incurred a sustained trend of any credit losses since revenue began. Trade and other receivables are written off when there is no reasonable expectation of recovery. Indicators that there is no reasonable expectation of recovery include, amongst others, failure to make contractual payments for a period of greater than 120 days past due. Market risk Market risk is the risk the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices, including interest rate risk and foreign currency risk. ● Interest rate price risk Interest rate price risk is the risk the cash flows of a financial instrument will fluctuate due to changes in market interest rates. The Company is exposed to such fluctuations relating to cash, as it is held in a high interest account which bears interest at a floating rate and long-term debt, as it bears interest at a floating rate. If interest rates had been 1% higher on the average cash balance, with all other variables held constant, loss before income taxes would have been $376 lower for the year ended December 31, 2022 (2021 - $515 ). If interest rates had been 1% higher on the average long-term debt balance, with all other variables held constant, loss before income taxes would have been $72 higher for the year ended December 31, 2022 (2021 - $ nil ). ● Foreign currency risk Foreign currency risk occurs as a result of foreign exchange rate fluctuations between the time a transaction is recorded and the time it is settled. The Company purchases goods and services denominated in foreign currencies and, accordingly, is subject to foreign currency risk, primarily the US dollar and Euro. Foreign currency risk arises from future commercial transactions and recognized assets and liabilities denominated in a currency that is not the functional currency. The risk is measured through a forecast of highly probable US dollar and Euro expenditures. The Company’s financial instruments denominated in foreign currencies are shown below in Canadian dollars. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2022 ​ US ​ Canadian Chinese ​ ​ ​ dollars ​ Euro ​ dollars ​ renminbi ​ Total ​ ​ $ ​ $ ​ $ ​ $ ​ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Cash ​ 32,897 ​ 365 ​ 13,214 ​ 41 ​ 46,517 Trade and other receivables ​ 1,118 ​ 1,074 ​ 4,152 ​ — ​ 6,344 Accounts payable and accrued liabilities ​ (288) ​ (521) ​ (1,208) ​ (16) ​ (2,033) Derivative financial instrument ​ — ​ — ​ (563) ​ — ​ (563) Lease liabilities ​ — ​ — ​ (1,056) ​ — ​ (1,056) Long-term debt ​ — ​ — ​ (7,174) ​ — ​ (7,174) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2021 ​ US ​ Canadian ​ Chinese ​ ​ ​ dollars ​ Euro ​ dollars ​ renminbi ​ Total ​ ​ $ ​ $ ​ $ ​ $ ​ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Cash ​ 47,765 ​ 1,349 ​ 17,984 ​ 54 ​ 67,152 Trade and other receivables ​ 4,310 ​ 421 ​ 303 ​ — ​ 5,034 Accounts payable and accrued liabilities ​ (372) ​ (1,030) ​ (1,759) ​ (19) ​ (3,180) Derivative financial instrument ​ — ​ — ​ (161) ​ — ​ (161) Lease liabilities ​ — ​ — ​ (1,368) ​ (9) ​ (1,377) ​ As at December 31, 2022, if foreign exchange rates had been 5% higher, with all other variables held constant, loss and comprehensive loss would have been $415 (2021 – $788 ) higher, mainly as a result of the translation of foreign currency denominated cash, trade and other receivables, accounts payable and accrued liabilities, other liabilities and lease liabilities. The Company does not use derivatives to reduce exposure to foreign currency risk. Liquidity risk Liquidity risk is the risk the Company may encounter difficulties in meeting its financial liability obligations as they come due. The Company has a planning and budgeting process in place to help determine the funds required to support the Company’s normal operating requirements on an ongoing basis. The Company controls liquidity risk through management of working capital, cash flows and the availability and sourcing of financing. The Company’s ability to accomplish all of its future strategic plans is dependent on obtaining additional financing or executing other strategic options; however, there is no assurance the Company will achieve these objectives. The following table summarizes the Company’s significant contractual, undiscounted cash flows related to its financial liabilities. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2022 ​ ​ Future Between ​ ​ Carrying ​ cash ​ Less than ​ 1 year and ​ ​ amount ​ flows ​ 1 year ​ 5 years ​ ​ $ ​ $ ​ $ ​ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ Accounts payable and accrued liabilities ​ 2,033 2,033 2,033 — Lease liability ​ 1,056 1,174 291 883 Long-term debt ​ 7,174 9,324 1,134 8,190 ​ ​ 10,263 12,531 3,458 9,073 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2021 ​ ​ Future ​ Between ​ ​ Carrying ​ cash ​ Less than ​ 1 year and ​ ​ amount ​ flows ​ 1 year ​ 5 years ​ ​ $ ​ $ ​ $ ​ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ Accounts payable and accrued liabilities ​ 3,180 ​ 3,180 ​ 3,180 ​ — Lease liability ​ 1,377 ​ 1,575 ​ 321 ​ 1,254 ​ ​ 4,557 ​ 4,755 ​ 3,501 ​ 1,254 ​ Fair value The fair values of cash, current trade and other receivables, accounts payable and accrued liabilities and lease liabilities approximate their carrying values, due to their relatively short periods to maturity. The fair value of the long-term debt approximates its carrying amount as it has a floating interest rate. For the non-current trade and other receivables in the prior year, the fair value is also not significantly different from the carrying amount. The fair value of the Company’s derivative financial instrument is determined based on the valuation techniques described in note 9 and is considered level 2 in the fair value hierarchy.

Related party transactions

Related party transactions	12 Months Ended
	Dec. 31, 2022
Related party transactions
Related party transactions	19 Related party transactions Key management includes the Company’s directors and senior management team. The remuneration of directors and the senior management team was as follows: ​ ​ ​ ​ ​ ​ ​ 2022 2021 ​ ​ $ ​ $ ​ ​ ​ ​ ​ Salaries and employee benefits ​ 2,054 ​ 1,989 Directors’ fees ​ 296 ​ 233 Share-based compensation ​ 2,272 ​ 3,182 ​ ​ 4,622 ​ 5,404 ​ Executive employment agreements allow for additional payments in the event of a liquidity event, or if the executive is terminated without cause.

Commitments and contingencies

Commitments and contingencies	12 Months Ended
	Dec. 31, 2022
Commitments and contingencies
Commitments and contingencies	20 Commitments and contingencies All directors and officers of the Company are indemnified by the Company for various items including, but not limited to, all costs to settle lawsuits or actions due to their association with the Company, subject to certain restrictions. The Company has purchased directors’ and officers’ liability insurance to mitigate the cost of any potential future lawsuits or actions. The term of the indemnification is not explicitly defined, but is limited to events for the period during which the indemnified party served as a director or officer of the Company. The maximum amount of any potential future payment cannot be reasonably estimated but could have a material adverse effect on the Company. The Company has also indemnified certain lenders and underwriters in relation to certain debt and equity offerings and their respective affiliates and directors, officers, employees, shareholders, partners, advisers and agents and each other person, if any, controlling any of the underwriters or lenders or their affiliates against certain liabilities.

Capital management

Capital management	12 Months Ended
	Dec. 31, 2022
Capital management
Capital management	21 Capital management The Company’s capital management objectives are to safeguard its ability to continue as a going concern and to provide returns for shareholders and benefits for other stakeholders by ensuring it has sufficient cash resources to fund its research and development activities, to pursue its commercialization efforts and to maintain its ongoing operations. The Company includes its share capital, deficit and long-term debt in the definition of capital. A summary of the Company’s capital structure is as follows: ​ ​ ​ ​ ​ ​ ​ 2022 2021 ​ ​ $ ​ $ ​ ​ ​ ​ ​ Common shares ​ 205,825 ​ 219,579 Deficit ​ (189,362) ​ (160,693) Long-term debt ​ 7,174 ​ — ​ ​ 23,637 ​ 58,886 ​

Segment reporting

Segment reporting	12 Months Ended
	Dec. 31, 2022
Segment reporting
Segment reporting	22 Segment reporting The Company’s operations are categorized into one industry segment, which is medical technology focused on magnetic resonance guided ablation procedures for the treatments to ablate the prostate gland, uterine fibroids, osteoid osteoma and nerves for palliative pain relief for patients with metastatic bone disease. The Company is managed geographically in Canada, Germany, USA, China and Finland. For the year ended December 31, 2022: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Canada USA Germany Total ​ ​ $ ​ $ ​ $ ​ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ Revenue ​ ​ ​ ​ Capital equipment 986 ​ 218 ​ 800 2,004 Recurring - non-capital 504 ​ 3,177 ​ 996 4,677 ​ ​ 1,490 ​ 3,395 ​ 1,796 ​ 6,681 ​ For the year ended December 31, 2021: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Canada USA Germany Total ​ ​ $ ​ $ ​ $ ​ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ Revenue ​ ​ ​ ​ ​ ​ ​ Capital equipment 1,724 ​ — ​ 1,426 ​ 3,150 Recurring - non-capital 353 ​ 2,090 ​ 1,280 ​ 3,723 ​ 2,077 ​ 2,090 ​ 2,706 ​ 6,873 ​ Other financial information by segment as at December 31, 2022: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Canada USA Germany ​ China Finland Total ​ ​ $ ​ $ ​ $ ​ $ ​ $ ​ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total assets 57,694 ​ 3,010 1,288 ​ 56 2,373 64,421 Intangible assets 680 ​ — — ​ — — 680 Property and equipment 212 ​ 687 — ​ — — 899 Right-of-use assets 818 ​ — — ​ — — 818 Amortization of intangible assets 704 ​ — — ​ — — 704 Depreciation of property and equipment 59 ​ 613 — ​ — — 672 Depreciation of right-of-use assets 219 ​ — — ​ 9 — 228 ​ Other financial information by segment as at December 31, 2021: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Canada USA Germany China Finland Total ​ ​ $ ​ $ ​ $ ​ $ ​ $ ​ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total assets 81,529 ​ 2,068 ​ 1,445 ​ 81 ​ 1,652 ​ 86,775 Goodwill and intangible assets 4,124 ​ — ​ — ​ — ​ — ​ 4,124 Property and equipment 490 ​ 298 ​ — ​ — ​ — ​ 788 Right-of-use assets ​ 1,106 ​ — ​ — ​ 10 ​ — ​ 1,116 Amortization of intangible assets 1,029 ​ — ​ — ​ — ​ — ​ 1,029 Depreciation of property and equipment ​ 408 ​ 110 ​ — ​ — ​ — ​ 518 Depreciation of right-of-use assets 234 ​ — ​ — ​ 8 ​ 90 ​ 332 ​

Summary of significant accoun_2

Summary of significant accounting policies and basis of preparation (Policies)	12 Months Ended
	Dec. 31, 2022
Summary of significant accounting policies and basis of preparation
Basis of preparation	Basis of preparation The Company prepares its consolidated financial statements in accordance with International Financial Reporting Standards as issued by the International Accounting Standards Board (IFRS). The Board of Directors approved these consolidated financial statements on March 7, 2023. These consolidated financial statements comply with IFRS.
Use of estimates and judgments	Use of estimates and judgments The preparation of consolidated financial statements in conformity with IFRS requires the use of certain critical accounting estimates. It also requires management to exercise its judgment in the process of applying the Company’s accounting policies. The areas involving a higher degree of judgment or complexity, or areas where assumptions and estimates are significant to the consolidated financial statements are disclosed in note 3.
Consolidation	Consolidation Subsidiaries are all entities over which the Company has control. The Company controls an entity when it is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity. The wholly owned subsidiaries are consolidated from the date control is obtained. All intercompany transactions, balances, income and expenses on transactions with the subsidiaries are fully eliminated. These consolidated financial statements include the following wholly owned subsidiaries: Profound Medical Inc. (Canada), Profound Medical Oy (Finland), Profound Medical GmbH (Germany), Profound Medical (U.S.) Inc. (United States), Profound Medical Technology Services (Beijing) Co., Ltd. (China) and 2753079 Ontario Inc. (Canada).
Segment reporting	Segment reporting Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision maker. The chief operating decision maker has been identified as the chief executive officer.
Foreign currency translation	Foreign currency translation The Company has a functional currency of Canadian dollars and the functional currency of each subsidiary is determined based on facts and circumstances relevant for each subsidiary. Where the Company’s presentation currency of US dollars differs from the functional currency of a subsidiary, the assets, liabilities and equity of the subsidiary are translated from the functional currency into the presentation currency at the exchange rates as at the reporting date. The income and expenses of the subsidiaries are translated at rates approximating the exchange rates at the dates of the transactions. Exchange differences arising on the translation of the financial statements of the Company’s subsidiaries are recognized in other comprehensive (income) loss. Foreign currency transactions are translated into the functional currency of the Company or its subsidiaries, using the exchange rates prevailing at the dates of these transactions. Foreign exchange gains and losses resulting from the settlement of foreign currency transactions and from the translation at year-end exchange rates of monetary assets and liabilities denominated in currencies other than an entity’s functional currency are recognized in the consolidated statements of loss and comprehensive loss, within net finance (income) costs.
Financial assets	Financial assets The Company classifies its financial assets in the following measurement categories: ● those to be measured subsequently at fair value (either through other comprehensive income, or through profit or loss); and ● those to be measured at amortized cost. The classification depends on the Company’s business model for managing the financial assets and the contractual terms of the cash flows. The Company does not currently have any assets measured subsequently at fair value. At initial recognition, the Company measures a financial asset at its fair value plus, in the case of a financial asset not at fair value through profit or loss, transaction costs that are directly attributable to the acquisition of the financial asset. Financial assets are derecognized when the rights to receive cash flows from the financial assets have expired or have been transferred and the Company has transferred substantially all the risks and rewards of ownership. Trade and other receivables are amounts due from customers for goods sold or services performed in the ordinary course of business. They are generally due for settlement within 12 months and are therefore generally classified as current. Trade and other receivables are recognized initially at the amount of consideration that is unconditional, unless they contain significant financing components, when they are recognized at fair value. The Company holds the trade and other receivables with the objective of collecting the contractual cash flows and therefore measures them subsequently at amortized cost using the effective interest rate method. The Company reviews its expected cash flows from trade and other receivables and when the receivable extends beyond one year, the amortized cost is calculated using management’s estimate of the cash flow timing and amounts. These amounts are continually re-assessed and adjustments are made when necessary. The Company assesses on a forward-looking basis the expected credit losses associated with its financial assets carried at amortized cost. For trade and other receivables, the Company applies the simplified approach permitted by IFRS 9, Financial Instruments (IFRS 9), which requires lifetime expected credit losses to be recognized at the time of initial recognition of the receivables.
Inventories	Inventories Inventories are valued at the lower of cost and net realizable value. Net realizable value is the estimated selling price in the ordinary course of business less the estimated costs of completion and the estimated costs necessary to make the sale. Cost is determined using the first-in, first-out method for finished goods and weighted average cost for raw materials.
Property and equipment	Property and equipment Property and equipment are stated at cost, less accumulated depreciation and accumulated impairment losses. Cost includes expenditures that are directly attributable to the acquisition of the asset. The carrying amount of a replaced asset is derecognized when replaced. Repairs and maintenance costs are charged to the consolidated statements of loss and comprehensive loss during the year in which they are incurred. The major categories of property and equipment are depreciated on a straight-line basis as follows: ​ ​ ​ ​ Furniture and fittings 20% per year Equipment under lease ​ 50% per year Leasehold improvements over the term of the lease ​ Residual values, methods of depreciation and useful lives of the assets are reviewed annually and adjusted if appropriate.
Goodwill	Goodwill Goodwill represents the excess fair value of the consideration transferred over the fair value of the underlying net assets in a business combination and is measured at cost less accumulated impairment losses. Goodwill is not amortized but is tested for impairment on an annual basis or more frequently if there are indications the goodwill may be impaired. For the purposes of impairment testing, goodwill is allocated to each of the Company’s cash generating units (CGUs) or group of CGUs that are expected to benefit from the synergies of the acquisition. If the recoverable amount of the CGU or group of CGUs is less than the carrying amount, the impairment loss is allocated first to reduce the carrying amount of any goodwill and then to other assets of the CGU or group of CGUs.
Identifiable intangible assets	Identifiable intangible assets The Company’s intangible assets are stated at cost, less accumulated amortization and are amortized on a straight-line basis in the consolidated statements of loss and comprehensive loss over their estimated useful lives. The major categories of intangible assets are amortized as follows: ​ ​ ​ ​ Exclusive licence agreement 20 years Software 5 years Brand 5 years Proprietary technology 5 years ​
Impairment of non-financial assets	Impairment of non-financial assets Property and equipment and intangible assets are tested for impairment when events or changes in circumstances indicate the carrying amount may not be recoverable. For the purpose of measuring recoverable amounts, assets are grouped at the lowest levels for which there are separately identifiable cash flow CGUs. The recoverable amount is the higher of an asset’s fair value, less costs of disposal and value in use (which is the present value of the expected future cash flows of the relevant asset or CGU). An impairment loss is recognized as the amount by which the asset’s carrying amount exceeds its recoverable amount. The Company evaluates impairment losses for potential reversals when events or circumstances warrant such consideration.
Accounts payable and accrued liabilities	Accounts payable and accrued liabilities These amounts represent liabilities for goods and services provided to the Company before the end of the financial year, which are unpaid. Accounts payable and accrued liabilities are presented as current liabilities unless payment is not due within 12 months after the reporting period. They are recognized initially at their fair value and subsequently measured at amortized cost using the effective interest method.
Long-term debt	Long-term debt Long-term debt is initially recognized at fair value, net of transaction costs incurred. Long-term debt is subsequently measured at amortized cost. Any difference between the proceeds (net of transaction costs) and the redemption amount is recognized in the consolidated statements of loss and comprehensive loss over the period of the long-term debt using the effective interest method. Long-term debt is removed from the consolidated balance sheets when the obligation specified in the contract is discharged, cancelled or expired. The difference between the carrying amount of a financial liability that has been extinguished and the consideration paid is recognized in the consolidated statements of loss and comprehensive loss within net finance (income) costs.
Provisions	Provisions A provision is recognized when the Company has a legal or constructive obligation as result of a past event, it is probable that an outflow of economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation. If the effect is material, provisions are determined by discounting the expected future cash flows at a pre-tax rate that reflects current market assessments of the time value of money and, where appropriate, the risks specific to the liability.
Leases	Leases At inception of a contract, the Company assesses whether a contract is, or contains, a lease based on whether the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. The Company recognizes a right-of-use asset and a lease liability at the lease commencement date. The right-of-use asset is initially measured based on the initial amount of the lease liability adjusted for any lease payments made at or before the commencement date, plus any initial direct costs incurred and an estimate of costs to dismantle and remove the underlying asset or to restore the underlying asset or the site on which it is located, less any lease incentives received. The assets are depreciated to the earlier of the end of the useful life of the right-of-use asset or the lease term using the straight-line method as this most closely reflects the expected pattern of consumption of the future economic benefits. The lease term includes periods covered by an option to extend if the Company is reasonably certain to exercise that option. Lease terms range from three to ten years for offices. In addition, the right-of-use asset is periodically reduced by impairment losses, if any, and adjusted for certain remeasurements of the lease liability. The lease liability is initially measured at the present value of the lease payments that are not paid at the commencement date, discounted using the interest rate implicit in the lease or, if that rate cannot be readily determined, the Company's incremental borrowing rate. The lease liability is measured at amortized cost using the effective interest method. It is remeasured when there is a change in future lease payments arising from a change in an index or rate, if there is a change in the Company's estimate of the amount expected to be payable under a residual value guarantee, or if the Company changes its assessment of whether it will exercise a purchase, extension or termination option. When the lease liability is remeasured in this way, a corresponding adjustment is made to the carrying amount of the right-of-use asset, or is recorded in profit or loss if the carrying amount of the right-of-use asset has been reduced to zero.
Revenue	Revenue To determine revenue recognition for arrangements the Company performs the following five steps: (i) identify the contract(s) with a customer; (ii) identify the performance obligations in the contract; (iii) determine the transaction price; (iv) allocate the transaction price to the performance obligations in the contract; and (v) recognize revenue when (or as) the entity satisfies a performance obligation. The Company only applies the five-step model to contracts when it is probable that the entity will collect the consideration it is entitled to in exchange for the goods or services it transfers to the customer. The Company derives its revenues primarily from the lease and sale of medical devices and the sale of certain one-time-use devices. Capital equipment consists of one-time revenue for the sale of capital equipment including installation fees. Recurring - non-capital revenue consists of the sale of one-time-use devices, lease of medical devices, procedures and services associated with extended warranties. Revenue is recognized when a contractual promise to a customer (performance obligation) has been fulfilled by transferring control over the promised goods or services, generally at the point in time of shipment to or receipt of the products by the customer or when the services are performed. When contracts contain customer acceptance provisions, revenue is recognized on the satisfaction of the specific acceptance criteria. The amount of revenue to be recognized is based on the consideration the Company expects to receive in exchange for its goods and services. For contracts that contain multiple performance obligations, the Company allocates the consideration to which it expects to be entitled to each performance obligation based on relative standalone selling prices and recognizes the related revenue when or as control of each individual performance obligation is transferred to customers. Service revenue related to installation and training is recognized over the period in which the services are performed. Service revenue related to extended warranty service is deferred and recognized on a straight-line basis over the extended warranty period covered by the respective customer contract.
Cost of sales	Cost of sales Cost of sales primarily includes the cost of finished goods, depreciation of equipment under lease, inventory provisions, royalties, warranty expense, freight and direct overhead expenses necessary to acquire or manufacture the finished goods.
Income taxes	Income taxes Income taxes are accounted for using the liability method. Deferred tax assets and liabilities are recognized for the differences between the tax basis and carrying amounts of assets and liabilities, for operating losses and for tax credit carry-forwards. Deferred tax assets are recognized to the extent that it is probable that future taxable income will be available against which temporary differences can be utilized. Deferred tax assets and liabilities are measured using enacted or substantively enacted tax rates and laws.
Share-based compensation	Share-based compensation The Company grants share options periodically to certain employees, directors, officers and advisers. Options currently outstanding vest over four years and have a contractual life of ten years . Each tranche in an award is considered a separate award with its own vesting period and grant date fair value. The fair value of each tranche is measured at the date of grant using the Black-Scholes option pricing model. Compensation expense is recognized over the tranche's vesting period using the graded vesting method by increasing contributed surplus based on the number of awards expected to vest. The Company has a long-term incentive plan (LTIP). For each Restricted Share Unit (RSU) and Deferred Share Unit (DSU) granted under the long-term incentive plan, the Company recognizes an expense equal to the market value of a Profound common share at the date of grant based on the number of RSUs and DSUs expected to vest, recognized over the term of the vesting period, with a corresponding credit to contributed surplus for share-based compensation anticipated to be equity settled or a corresponding credit to a liability for those anticipated to be cash settled. Share-based compensation expense is adjusted for subsequent changes in management’s estimate of the number of RSUs or DSUs that are expected to vest, for RSUs or DSUs anticipated to be cash settled and changes in the market value of Profound common shares. The effect of these changes is recognized in the period of the change. Vested RSUs are settled either in Profound common shares or in cash or a combination thereof at the discretion of the Company. Vested DSUs are settled either in Profound common shares or in cash or a combination thereof at the discretion of the holder. The value of the DSUs is recognized in accounts payable and accrued liabilities in the consolidated balance sheet and a corresponding expense is recognized over the estimated vesting period of three years.
Research and development costs	Research and development costs Research costs are charged to expense as incurred. Development costs are capitalized and amortized when the criteria for capitalization are met, otherwise they are expensed as incurred. No development costs have been capitalized to date. Clinical trial expenses result from obligations under contracts with vendors, consultants and clinical site agreements in connection with conducting clinical trials. The financial terms of these contracts are subject to negotiations, which vary from contract to contract and may result in payment flows that do not match the periods over which materials or services are provided to the Company. The appropriate level of clinical trial expenses is reflected in the Company’s consolidated financial statements by matching period expenses with period services and efforts expended. These expenses are recorded according to the progress of the clinical trial as measured by patient progression and the timing of various aspects of the clinical trial. Clinical trial accrual estimates are determined through discussions with internal clinical personnel and outside service providers as to the progress or state of completion of clinical trials, or the services completed. Service provider status is then compared to the contractually obligated fees to be paid for such services. During the course of a clinical trial, the Company may adjust the rate of clinical expense recognized if actual results differ from management’s estimates.
Government grants	Government grants The Company recognizes government grants when there is reasonable assurance that the Company will comply with the conditions of the grant and the grant will be received. Government grants receivable are recorded in accounts receivable on the consolidated statements of financial position. The Company recognizes government grants in the consolidated statements of loss and comprehensive loss in the same period as the expenses for which the grant is intended to compensate and nets the amount off the related expenses. In cases where a government grant becomes receivable as compensation for expenses already incurred in prior periods, the grant is recognized in profit or loss in the period in which it becomes receivable.
Loss per share	Loss per share Basic loss per share is calculated by dividing the net loss by the weighted average number of common shares outstanding during the year. Diluted loss per share is calculated by dividing the applicable net loss by the sum of the weighted average number of shares outstanding during the year and all additional common shares that would have been outstanding if potentially dilutive common shares had been issued during the year.
COVID-19	COVID-19 The COVID-19 outbreak has been declared a pandemic by the World Health Organization. COVID-19 is altering business and consumer activity in affected areas and beyond. The global response to the COVID-19 pandemic has resulted in, among other things, border closures, severe travel restrictions, the temporary shut-down of non-essential services and extreme fluctuations in financial and commodity markets. Additional measures may be implemented by one or more governments in jurisdictions where the Company operates. These measures have caused material disruption to businesses globally, resulting in an economic slowdown. To date, the economic downturn and uncertainty caused by the COVID-19 pandemic and global measures undertaken to contain its spread have affected all of the Company’s operations to some extent and, in particular, have caused volatility in demand for the TULSA-PRO ® and SONALLEVE ® systems and the one-time-use devices related thereto. This has resulted in a reduction in anticipated sales and led to delays in the Company’s expectations regarding the rate at which agreements for new system user sites will be entered into and when user sites will become operational for the initiation of patient treatments. Despite the COVID-19 pandemic, patient treatments are continuing and Profound continues to identify potential new system user sites. The financial impacts from COVID-19 during the year has affected Profound’s ability to collect payments due to continuous lockdowns and hospital restrictions, which have impeded our efforts to install our systems and has delayed corresponding collections. It has also impeded our efforts concerning the sale of SONALLEVE ® systems. Profound continues to work with local authorities and team members located within these countries to help expedite the process.

Summary of significant accoun_3

Summary of significant accounting policies and basis of preparation (Tables)	12 Months Ended
	Dec. 31, 2022
Summary of significant accounting policies and basis of preparation
Schedule of Depreciation rates of Assets	​ ​ ​ ​ Furniture and fittings 20% per year Equipment under lease ​ 50% per year Leasehold improvements over the term of the lease ​
Schedule of Useful Lives of Identifiable Intangible Assets	​ ​ ​ ​ Exclusive licence agreement 20 years Software 5 years Brand 5 years Proprietary technology 5 years ​

Trade and other receivables (Ta

Trade and other receivables (Tables)	12 Months Ended
	Dec. 31, 2022
Trade and other receivables
Schedule of Trade and other receivables	​ ​ ​ ​ ​ ​ ​ 2022 2021 ​ ​ $ ​ $ ​ ​ ​ ​ ​ Trade receivables 5,837 ​ 4,592 Indirect tax receivables 494 ​ 407 Other receivables 13 ​ 35 Total trade and other receivables 6,344 ​ 5,034 Less: Current portion ​ 6,344 ​ 1,412 Long-term portion ​ — ​ 3,622 ​

Inventory (Tables)

Inventory (Tables)	12 Months Ended
	Dec. 31, 2022
Inventory
Schedule of Inventories	​ ​ ​ ​ ​ ​ ​ 2022 2021 ​ ​ $ ​ $ ​ ​ ​ ​ ​ Finished goods 5,455 5,114 Raw materials 2,491 2,306 Inventory provision (5) (7) Total inventory 7,941 7,413 ​

Property and equipment (Tables)

Property and equipment (Tables)	12 Months Ended
	Dec. 31, 2022
Property and equipment
Schedule of Property and equipment	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Furniture ​ ​ ​ ​ ​ ​ ​ ​ and ​ Leasehold ​ Equipment ​ ​ ​ ​ fittings ​ improvements ​ under lease ​ Total ​ $ $ $ $ Year ended December 31, 2021 Opening net book value 12 313 534 859 Additions ​ — ​ 32 ​ 408 ​ 440 Foreign exchange (2) 1 8 7 Depreciation (10) (60) (448) (518) Closing net book value — 286 502 788 ​ ​ ​ ​ ​ ​ ​ ​ ​ At December 31, 2021 ​ ​ ​ ​ Cost 127 578 1,077 1,782 Accumulated depreciation (127) (292) (575) (994) Net book value — 286 502 788 ​ ​ ​ ​ ​ ​ ​ ​ ​ Year ended December 31, 2022 ​ ​ ​ ​ Opening net book value — 286 502 788 Additions ​ — ​ — ​ 800 ​ 800 Foreign exchange — (15) (2) (17) Depreciation — (59) (613) (672) Closing net book value — 212 687 899 ​ ​ ​ ​ ​ ​ ​ ​ ​ At December 31, 2022 ​ ​ ​ ​ Cost — 542 1,835 2,377 Accumulated depreciation — (330) (1,148) (1,478) Net book value — 212 687 899

Intangible assets (Tables)

Intangible assets (Tables)	12 Months Ended
	Dec. 31, 2022
Intangible assets
Schedule of Intangible assets	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Exclusive ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ licence ​ ​ ​ Proprietary ​ ​ ​ ​ ​ ​ agreement ​ Software ​ technology ​ Brand ​ Total ​ $ $ $ $ $ Year ended December 31, 2021 Opening net book value 186 362 1,128 222 1,898 Additions — 561 — — 561 Foreign exchange ​ 1 ​ (5) ​ 7 ​ 2 ​ 5 Amortization (22) (148) (718) (141) (1,029) Closing net book value 165 770 417 83 1,435 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ As at December 31, 2021 ​ ​ ​ ​ ​ Cost 231 978 3,456 681 5,346 Accumulated amortization (66) (208) (3,039) (598) (3,911) Net book value 165 770 417 83 1,435 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Year ended December 31, 2022 ​ ​ ​ ​ ​ Opening net book value 165 770 417 83 1,435 Foreign exchange ​ (5) ​ (32) ​ (10) ​ (4) ​ (51) Amortization (25) (193) (407) (79) (704) Closing net book value 135 545 — — 680 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ As at December 31, 2022 ​ ​ ​ ​ ​ Cost 231 978 3,456 681 5,346 Accumulated amortization (96) (433) (3,456) (681) (4,666) Net book value 135 545 — — 680 ​
Schedule of changes in goodwill	​ ​ ​ ​ Goodwill $ ​ ​ ​ As at January 1, 2021 2,678 Foreign exchange 11 As at December 31, 2021 2,689 Foreign exchange (165) Impairment (2,524) As at December 31, 2022 —

Right-of-use assets (Tables)

Right-of-use assets (Tables)	12 Months Ended
	Dec. 31, 2022
Right-of-use assets
Schedule of right-of-use assets	​ ​ ​ ​ ​ ​ Leased ​ premises ​ ​ $ Year ended December 31, 2021 Opening net book value 1,424 Addition ​ 18 Foreign exchange 6 Depreciation (332) Closing net book value 1,116 ​ ​ ​ As at December 31, 2021 ​ Cost 1,918 Accumulated depreciation (802) Net book value 1,116 ​ ​ ​ Year ended December 31, 2022 ​ Opening net book value 1,116 Foreign exchange (70) Depreciation (228) Closing net book value 818 ​ ​ ​ As at December 31, 2022 ​ Cost 1,679 Accumulated depreciation (861) Net book value 818 ​

Long-term debt (Tables)

Long-term debt (Tables)	12 Months Ended
	Dec. 31, 2022
Long-term debt
Schedule of changes during the period for long-term debt	​ ​ ​ ​ ​ 2022 ​ ​ $ ​ ​ ​ Balance – Beginning of year ​ — Proceeds received, net ​ 7,124 Fair value of warrants ​ (129) Interest and accretion expense ​ 115 Foreign exchange ​ 108 Repayment ​ (44) Balance – End of year ​ 7,174 Less: Current portion ​ 523 Long-term portion ​ 6,651 ​
Schedule of variables used to determine the fair value of purchase warrants issued for borrowings	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, ​ November 3, ​ ​ ​ ​ 2022 ​ ​ 2022 ​ ​ ​ ​ ​ ​ ​ ​ ​ Share price C$ 14.48 C$ 5.38 ​ Volatility ​ 70 % ​ 72 % Expected life of warrants ​ 6.9 years ​ 7 years Risk free interest rate ​ 3.30 % ​ 3.42 % Dividend yield ​ — ​ — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2022 ​ 2021 ​ ​ ​ ​ ​ ​ ​ ​ ​ Share price C$ 14.48 C$ 14.26 ​ Volatility ​ 84 % ​ 61 % Expected life of warrants ​ 0.6 years ​ 1.6 years Risk free interest rate ​ 4.07 % ​ 0.94 % Dividend yield ​ — ​ — ​

Lease liabilities (Tables)

Lease liabilities (Tables)	12 Months Ended
	Dec. 31, 2022
Lease liabilities
Schedule of changes in lease liabilities	​ ​ ​ ​ ​ $ As at January 1, 2021 1,676 Repayments (386) Foreign exchange 2 Addition 18 Interest and accretion expense ​ 67 As at December 31, 2021 ​ 1,377 Repayments ​ (312) Foreign exchange ​ (68) Interest and accretion expense ​ 59 As at December 31, 2022 1,056 Less: Current portion 239 Long-term portion 817

Share capital (Tables)

Share capital (Tables)	12 Months Ended
	Dec. 31, 2022
Share capital
Schedule of issued and outstanding common shares (with no par value)	​ ​ ​ ​ ​ ​ ​ 2022 2021 ​ ​ $ ​ $ ​ ​ ​ ​ ​ 20,879,497 (2021 – 20,776,217 ) common shares 205,825 219,579 ​
Schedule of warrants outstanding	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted ​ ​ ​ ​ Weighted ​ average ​ ​ ​ ​ average ​ remaining ​ ​ ​ ​ exercise ​ contractual ​ ​ Number of ​ price ​ life ​ warrants C$ (years) ​ ​ ​ ​ ​ ​ ​ Balance – January 1, 2021 1,223,744 14.35 1.68 Expired (13,600) 15.50 — Exercised (485,161) 15.33 0.32 Balance – December 31, 2021 ​ 724,983 ​ 13.81 ​ 1.23 Granted 47,287 5.29 9.80 Balance – December 31, 2022 772,270 13.29 0.82 ​

Share-based payments (Tables)

Share-based payments (Tables)	12 Months Ended
	Dec. 31, 2022
Share-based payments
Summary of the share option changes during the period presented and the total number of share options outstanding	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted ​ ​ ​ ​ average ​ ​ ​ ​ exercise ​ ​ Number ​ price ​ of options C$ ​ ​ ​ ​ ​ Balance – January 1, 2021 1,522,362 14.05 Granted 698,035 22.21 Exercised (79,208) 9.72 Forfeited/expired (48,593) 15.46 Balance – December 31, 2021 2,092,596 16.90 Granted 29,200 9.65 Exercised (40,542) 8.45 Forfeited/expired (569,481) 17.49 Balance – December 31, 2022 1,511,773 16.07 ​
Summary of estimated the fair value of the share options granted	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ August 15, ​ December 20, ​ 2022 2022 ​ Exercise price ​ C$ 9.20 ​ C$ 12.46 ​ Expected volatility ​ 68 % 71 % Expected life of options ​ 6 years 6 years Risk-free interest rate ​ 2.76 % 2.95 % Dividend yield ​ — ​ — ​ Number of share options issued ​ 25,200 ​ 4,000 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ November 15, ​ December 30, ​ ​ 2021 2021 Exercise price ​ C$ 14.96 ​ C$ 14.90 ​ Expected volatility ​ 84 % 84 % Expected life of options ​ 6 years 6 years Risk-free interest rate ​ 1.54 % 1.69 % Dividend yield ​ — ​ — ​ Number of share options issued ​ 24,500 ​ 105,071 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ March 11, ​ May 21, ​ June 17, ​ ​ 2021 ​ 2021 2021 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Exercise price ​ C$ 28.16 ​ C$ 22.08 ​ C$ 23.14 ​ Expected volatility ​ ​ 84 % 85 % 85 % Expected life of options ​ ​ 6 years 6 years 6 years Risk-free interest rate ​ ​ 1.09 % 1.34 % 1.25 % Dividend yield ​ ​ — ​ — ​ — ​ Number of share options issued ​ ​ 12,000 ​ 555,464 ​ 1,000 ​ ​
Summary of the share options outstanding	The following table summarizes information about the share options outstanding as at December 31, 2022: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted ​ ​ ​ ​ ​ ​ average ​ ​ ​ ​ Number of ​ remaining ​ Number of Exercise price ​ options ​ contractual ​ options C$ ​ outstanding ​ life (years) ​ exercisable ​ ​ ​ ​ ​ ​ ​ 2.01 – 4.00 1,800 0.46 1,800 8.01 – 10.00 349,697 4.56 297,383 10.01 – 12.00 121,262 5.42 109,018 12.01 – 14.00 12,300 6.80 — 14.01 – 16.00 148,281 6.27 129,284 16.01 – 18.00 435,189 7.42 59,086 20.01 – 22.00 600 7.63 229,319 22.01 – 24.00 430,744 8.27 171,735 24.01 – 26.00 ​ 1,900 ​ 7.93 ​ 1,152 28.01 – 30.00 ​ 10,000 ​ 8.20 ​ 196 ​ ​ 1,511,773 ​ 6.98 ​ 998,973 ​
Summary of the RSUs changes during the period	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted ​ ​ ​ ​ average ​ ​ ​ ​ remaining ​ Number of contractual ​ ​ RSUs ​ life (years) ​ ​ ​ ​ ​ Balance – January 1, 2021 8,717 ​ 2.39 Granted 241,500 ​ 3.00 Vested (2,900) ​ — Forfeited ​ (15,000) ​ 2.39 Balance – December 31, 2021 ​ 232,317 ​ 2.45 Granted ​ 385,083 ​ 3.00 Vested ​ (62,738) ​ — Forfeited ​ (110,801) ​ 2.14 Balance – December 31, 2022 443,861 ​ 2.38

Revenue (Tables)

Revenue (Tables)	12 Months Ended
	Dec. 31, 2022
Revenue
Summary of revenue	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Year ended December 31, ​ ​ ​ 2022 ​ 2021 ​ ​ ​ $ ​ $ ​ ​ Contracts ​ ​ ​ ​ ​ Contracts ​ ​ ​ ​ ​ ​ with ​ ​ ​ ​ ​ with ​ ​ ​ ​ ​ customers ​ Leasing ​ Total customers Leasing Total ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Capital equipment ​ 2,004 ​ — ​ 2,004 ​ 3,150 ​ — ​ 3,150 ​ Recurring - non-capital ​ 3,967 ​ 710 ​ 4,677 ​ 3,293 ​ 430 ​ 3,723 ​ ​ ​ 5,971 ​ 710 ​ 6,681 ​ 6,443 ​ 430 ​ 6,873 ​

Nature of expenses (Tables)

Nature of expenses (Tables)	12 Months Ended
	Dec. 31, 2022
Nature of expenses
Summary of nature of expenses	​ ​ ​ ​ ​ ​ ​ 2022 2021 ​ ​ $ ​ $ ​ ​ ​ ​ ​ Production and manufacturing costs ​ 2,397 ​ 2,738 Salaries and benefits ​ 14,942 ​ 12,835 Consulting fees ​ 4,146 ​ 4,076 Research and development expenses ​ 2,839 ​ 3,358 Impairment of goodwill ​ 2,524 ​ — Sales and marketing expenses ​ 1,711 ​ 1,127 Amortization and depreciation ​ 1,604 ​ 1,879 Share-based compensation ​ 4,238 ​ 7,205 Rent ​ 496 ​ 250 Software/hardware ​ 1,003 ​ 619 Insurance ​ 1,239 ​ 1,397 Office and shop supplies ​ 683 ​ 415 Other expenses ​ 985 ​ 1,265 ​ ​ 38,807 ​ 37,164 ​

Net finance (income) costs (Tab

Net finance (income) costs (Tables)	12 Months Ended
	Dec. 31, 2022
Net finance (income) costs
Summary of net finance (income) costs	​ ​ ​ ​ ​ ​ ​ 2022 2021 ​ ​ $ ​ $ ​ ​ ​ ​ ​ Change in fair value of derivative financial instrument ​ 275 ​ (293) Lease liability interest expense (note 10) ​ 59 ​ 67 Interest income ​ (803) ​ (205) Change in amortized cost of trade and other receivables (note 4) ​ (290) ​ 448 CIBC loan interest expense (note 9) ​ 115 ​ — Foreign exchange loss /(gain) ​ (3,100) ​ 286 ​ ​ (3,744) ​ 303

Income taxes (Tables)

Income taxes (Tables)	12 Months Ended
	Dec. 31, 2022
Income taxes
Summary of income taxes expense	​ ​ ​ ​ ​ ​ ​ 2022 2021 ​ ​ $ ​ $ ​ ​ ​ ​ ​ Loss before income taxes ​ 28,382 30,594 ​ ​ ​ ​ ​ Recovery based on combined federal and provincial statutory rate of 25.48% (2021 – 25.48% ) ​ (7,232) (7,795) Permanent differences ​ 1,082 1,608 Change in deferred tax assets not recognized ​ 6,440 6,287 Effect of tax rates in foreign jurisdictions ​ (3) 5 Net income tax expense ​ 287 ​ 105 ​

Loss per share (Tables)

Loss per share (Tables)	12 Months Ended
	Dec. 31, 2022
Loss per share
Summary of basic and diluted loss per share	​ ​ ​ ​ ​ ​ ​ ​ ​ 2022 2021 ​ ​ ​ ​ ​ ​ ​ Net loss for the year ​ $ 28,669 ​ $ 30,699 Weighted average number of common shares ​ 20,829,861 ​ 20,464,168 Basic and diluted loss per share ​ $ 1.38 ​ $ 1.50 ​

Financial assets and liabilit_2

Financial assets and liabilities (Tables)	12 Months Ended
	Dec. 31, 2022
Financial assets and liabilities
Summary of classification of financial instruments	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2022 ​ ​ ​ Financial ​ ​ Fair value ​ Financial ​ liabilities ​ ​ through ​ assets at ​ at ​ ​ profit or ​ amortized ​ amortized ​ ​ loss ​ cost ​ cost ​ ​ $ ​ $ ​ $ ​ ​ ​ ​ ​ ​ ​ Cash ​ — ​ 46,517 ​ — Trade and other receivables ​ — ​ 6,344 ​ — Accounts payable and accrued liabilities ​ — ​ — ​ 2,033 Lease liabilities ​ — ​ — ​ 1,056 Derivative financial instrument ​ 563 ​ — ​ — Long-term debt ​ — ​ — ​ 7,174 ​ ​ 563 ​ 52,861 ​ 10,263 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2021 ​ ​ ​ Financial ​ ​ Fair value ​ Financial ​ liabilities ​ ​ through ​ assets at ​ at ​ ​ profit or ​ amortized ​ amortized ​ ​ loss ​ cost ​ cost ​ ​ $ ​ $ ​ $ ​ ​ ​ ​ ​ ​ ​ Cash ​ — ​ 67,152 ​ — Trade and other receivables ​ — ​ 5,034 ​ — Accounts payable and accrued liabilities ​ — ​ — ​ 3,180 Lease liabilities ​ — ​ — ​ 1,377 Derivative financial instrument ​ 161 ​ — ​ — ​ ​ 161 ​ 72,186 ​ 4,557 ​
Summary of financial instruments denominated in foreign currencies	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2022 ​ US ​ Canadian Chinese ​ ​ ​ dollars ​ Euro ​ dollars ​ renminbi ​ Total ​ ​ $ ​ $ ​ $ ​ $ ​ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Cash ​ 32,897 ​ 365 ​ 13,214 ​ 41 ​ 46,517 Trade and other receivables ​ 1,118 ​ 1,074 ​ 4,152 ​ — ​ 6,344 Accounts payable and accrued liabilities ​ (288) ​ (521) ​ (1,208) ​ (16) ​ (2,033) Derivative financial instrument ​ — ​ — ​ (563) ​ — ​ (563) Lease liabilities ​ — ​ — ​ (1,056) ​ — ​ (1,056) Long-term debt ​ — ​ — ​ (7,174) ​ — ​ (7,174) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2021 ​ US ​ Canadian ​ Chinese ​ ​ ​ dollars ​ Euro ​ dollars ​ renminbi ​ Total ​ ​ $ ​ $ ​ $ ​ $ ​ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Cash ​ 47,765 ​ 1,349 ​ 17,984 ​ 54 ​ 67,152 Trade and other receivables ​ 4,310 ​ 421 ​ 303 ​ — ​ 5,034 Accounts payable and accrued liabilities ​ (372) ​ (1,030) ​ (1,759) ​ (19) ​ (3,180) Derivative financial instrument ​ — ​ — ​ (161) ​ — ​ (161) Lease liabilities ​ — ​ — ​ (1,368) ​ (9) ​ (1,377) ​
Summary of significant contractual, undiscounted cash flows related to its financial liabilities	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2022 ​ ​ Future Between ​ ​ Carrying ​ cash ​ Less than ​ 1 year and ​ ​ amount ​ flows ​ 1 year ​ 5 years ​ ​ $ ​ $ ​ $ ​ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ Accounts payable and accrued liabilities ​ 2,033 2,033 2,033 — Lease liability ​ 1,056 1,174 291 883 Long-term debt ​ 7,174 9,324 1,134 8,190 ​ ​ 10,263 12,531 3,458 9,073 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2021 ​ ​ Future ​ Between ​ ​ Carrying ​ cash ​ Less than ​ 1 year and ​ ​ amount ​ flows ​ 1 year ​ 5 years ​ ​ $ ​ $ ​ $ ​ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ Accounts payable and accrued liabilities ​ 3,180 ​ 3,180 ​ 3,180 ​ — Lease liability ​ 1,377 ​ 1,575 ​ 321 ​ 1,254 ​ ​ 4,557 ​ 4,755 ​ 3,501 ​ 1,254 ​

Related party transactions (Tab

Related party transactions (Tables)	12 Months Ended
	Dec. 31, 2022
Related party transactions
Summary of remuneration of directors and the senior management team	​ ​ ​ ​ ​ ​ ​ 2022 2021 ​ ​ $ ​ $ ​ ​ ​ ​ ​ Salaries and employee benefits ​ 2,054 ​ 1,989 Directors’ fees ​ 296 ​ 233 Share-based compensation ​ 2,272 ​ 3,182 ​ ​ 4,622 ​ 5,404 ​

Capital management (Tables)

Capital management (Tables)	12 Months Ended
	Dec. 31, 2022
Capital management
Summary of capital management	​ ​ ​ ​ ​ ​ ​ 2022 2021 ​ ​ $ ​ $ ​ ​ ​ ​ ​ Common shares ​ 205,825 ​ 219,579 Deficit ​ (189,362) ​ (160,693) Long-term debt ​ 7,174 ​ — ​ ​ 23,637 ​ 58,886

Segment reporting (Tables)

Segment reporting (Tables)	12 Months Ended
	Dec. 31, 2022
Segment reporting
Schedule of financial information of geographical segments	For the year ended December 31, 2022: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Canada USA Germany Total ​ ​ $ ​ $ ​ $ ​ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ Revenue ​ ​ ​ ​ Capital equipment 986 ​ 218 ​ 800 2,004 Recurring - non-capital 504 ​ 3,177 ​ 996 4,677 ​ ​ 1,490 ​ 3,395 ​ 1,796 ​ 6,681 ​ For the year ended December 31, 2021: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Canada USA Germany Total ​ ​ $ ​ $ ​ $ ​ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ Revenue ​ ​ ​ ​ ​ ​ ​ Capital equipment 1,724 ​ — ​ 1,426 ​ 3,150 Recurring - non-capital 353 ​ 2,090 ​ 1,280 ​ 3,723 ​ 2,077 ​ 2,090 ​ 2,706 ​ 6,873 ​ Other financial information by segment as at December 31, 2022: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Canada USA Germany ​ China Finland Total ​ ​ $ ​ $ ​ $ ​ $ ​ $ ​ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total assets 57,694 ​ 3,010 1,288 ​ 56 2,373 64,421 Intangible assets 680 ​ — — ​ — — 680 Property and equipment 212 ​ 687 — ​ — — 899 Right-of-use assets 818 ​ — — ​ — — 818 Amortization of intangible assets 704 ​ — — ​ — — 704 Depreciation of property and equipment 59 ​ 613 — ​ — — 672 Depreciation of right-of-use assets 219 ​ — — ​ 9 — 228 ​ Other financial information by segment as at December 31, 2021: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Canada USA Germany China Finland Total ​ ​ $ ​ $ ​ $ ​ $ ​ $ ​ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total assets 81,529 ​ 2,068 ​ 1,445 ​ 81 ​ 1,652 ​ 86,775 Goodwill and intangible assets 4,124 ​ — ​ — ​ — ​ — ​ 4,124 Property and equipment 490 ​ 298 ​ — ​ — ​ — ​ 788 Right-of-use assets ​ 1,106 ​ — ​ — ​ 10 ​ — ​ 1,116 Amortization of intangible assets 1,029 ​ — ​ — ​ — ​ — ​ 1,029 Depreciation of property and equipment ​ 408 ​ 110 ​ — ​ — ​ — ​ 518 Depreciation of right-of-use assets 234 ​ — ​ — ​ 8 ​ 90 ​ 332

Summary of significant accoun_4

Summary of significant accounting policies and basis of preparation - Property and equipment (Details)	12 Months Ended
	Dec. 31, 2022
Furniture and fittings
Summary of significant accounting policies and basis of preparation
Depreciation of property and equipment	20%
Equipment under lease
Summary of significant accounting policies and basis of preparation
Depreciation of property and equipment	50%

Summary of significant accoun_5

Summary of significant accounting policies and basis of preparation - Identifiable Intangible assets (Details)	12 Months Ended
	Dec. 31, 2022
Exclusive license agreement
Summary of significant accounting policies and basis of preparation
Useful life	20 years
Software
Summary of significant accounting policies and basis of preparation
Useful life	5 years
Brand
Summary of significant accounting policies and basis of preparation
Useful life	5 years
Proprietary technology
Summary of significant accounting policies and basis of preparation
Useful life	5 years

Summary of significant accoun_6

Summary of significant accounting policies and basis of preparation - Additional Information (Details)	12 Months Ended
	Dec. 31, 2022
Summary of significant accounting policies and basis of preparation
Vesting period	4 years
Contractual life	10 years
Minimum
Summary of significant accounting policies and basis of preparation
Lease term	4 years
Maximum
Summary of significant accounting policies and basis of preparation
Lease term	10 years

Trade and other receivables (De

Trade and other receivables (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Trade and other receivables
Trade receivables	$ 5,837	$ 4,592
Indirect tax receivables	494	407
Other receivables	13	35
Total trade and other receivables	6,344	5,034
Less: Current portion	6,344	1,412
Long-term portion		3,622
Interest expense	$ 290	448
Discount rate	6%
Past due
Trade and other receivables
Trade receivables	$ 0	$ 0

Inventory (Details)

Inventory (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Inventory
Finished goods	$ 5,455	$ 5,114
Raw materials	2,491	2,306
Inventory provision	(5)	(7)
Total inventory	$ 7,941	$ 7,413

Inventory - Narrative (Details)

Inventory - Narrative (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Inventory
Inventory recognized in cost of sales	$ 2,101	$ 3,547
Decrease in Inventory provision	2	$ 7
Inventory write down charged to cost of sales	$ 0

Property and equipment (Details

Property and equipment (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Property and equipment
Opening net book value	$ 788	$ 859
Additions	800	440
Foreign exchange	(17)	7
Depreciation	(672)	(518)
Closing net book value	899	788
Cost	2,377	1,782
Accumulated depreciation	(1,478)	(994)
Net book value	899	788
Furniture and fittings [Member]
Property and equipment
Opening net book value	0	12
Foreign exchange		(2)
Depreciation		(10)
Closing net book value	0	0
Cost		127
Accumulated depreciation		(127)
Net book value	0	0
Leasehold improvements
Property and equipment
Opening net book value	286	313
Additions		32
Foreign exchange	(15)	1
Depreciation	(59)	(60)
Closing net book value	212	286
Cost	542	578
Accumulated depreciation	(330)	(292)
Net book value	212	286
Computer equipment [member]
Property and equipment
Opening net book value	502	534
Additions	800	408
Foreign exchange	(2)	8
Depreciation	(613)	(448)
Closing net book value	687	502
Cost	1,835	1,077
Accumulated depreciation	(1,148)	(575)
Net book value	$ 687	$ 502

Intangible assets (Details)

Intangible assets (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Disclosure of reconciliation of changes in intangible assets and goodwill [line items]
Opening net book value	$ 1,435	$ 1,898
Additions		561
Foreign exchange	(51)	5
Amortization	(704)	(1,029)
Closing net book value	680	1,435
Cost	5,346	5,346
Accumulated amortization	(4,666)	(3,911)
Net book value	680	1,435
Exclusive license agreement
Disclosure of reconciliation of changes in intangible assets and goodwill [line items]
Opening net book value	165	186
Foreign exchange	(5)	1
Amortization	(25)	(22)
Closing net book value	135	165
Cost	231	231
Accumulated amortization	(96)	(66)
Net book value	135	165
Software
Disclosure of reconciliation of changes in intangible assets and goodwill [line items]
Opening net book value	770	362
Additions		561
Foreign exchange	(32)	(5)
Amortization	(193)	(148)
Closing net book value	545	770
Cost	978	978
Accumulated amortization	(433)	(208)
Net book value	545	770
Proprietary technology
Disclosure of reconciliation of changes in intangible assets and goodwill [line items]
Opening net book value	417	1,128
Foreign exchange	(10)	7
Amortization	(407)	(718)
Closing net book value		417
Cost	3,456	3,456
Accumulated amortization	(3,456)	(3,039)
Net book value		417
Brand
Disclosure of reconciliation of changes in intangible assets and goodwill [line items]
Opening net book value	83	222
Foreign exchange	(4)	2
Amortization	(79)	(141)
Closing net book value		83
Cost	681	681
Accumulated amortization	$ (681)	(598)
Net book value		$ 83

Intangible assets - Goodwill (D

Intangible assets - Goodwill (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Intangible assets
Goodwill at beginning of period	$ 2,689	$ 2,678
Foreign exchange	(165)	11
Impairment	$ (2,524)
Goodwill at end of period		$ 2,689

Intangible assets - Additional

Intangible assets - Additional information (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2022 USD ($)
Disclosure of reconciliation of changes in intangible assets and goodwill [line items]
Impairment of goodwill	$ 2,524
Sonalleve MR-HIFU
Disclosure of reconciliation of changes in intangible assets and goodwill [line items]
Terminal growth assumption	2%
Discount rate	18%
Impairment of goodwill	$ 2,524

Right-of-use assets (Details)

Right-of-use assets (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Disclosure of quantitative information about right-of-use assets [line items]
Opening net book value	$ 1,116	$ 1,424
Addition		18
Foreign exchange	(70)	6
Depreciation	(228)	(332)
Closing net book value	$ 818	1,116
Minimum
Disclosure of quantitative information about right-of-use assets [line items]
Lease agreement term	3 years
Maximum
Disclosure of quantitative information about right-of-use assets [line items]
Lease agreement term	10 years
Cost
Disclosure of quantitative information about right-of-use assets [line items]
Opening net book value	$ 1,918
Closing net book value	1,679	1,918
Accumulated depreciation
Disclosure of quantitative information about right-of-use assets [line items]
Opening net book value	(802)
Closing net book value	$ (861)	$ (802)

Long-term debt - CIBC Loan (Det

Long-term debt - CIBC Loan (Details) $ in Thousands, $ in Thousands		12 Months Ended
	Nov. 03, 2022 CAD ($)	Dec. 31, 2022 USD ($)
Disclosure of detailed information about borrowings [line items]
Total initial gross proceeds		$ 7,273
Changes during the period
Proceeds received, net		7,124
Fair value of warrants		(129)
Interest and accretion expense		115
Foreign exchange		108
Repayment		(44)
Balance - End of year		7,174
Less: Current portion		523
Long-term portion		$ 6,651
CIBC loan
Disclosure of detailed information about borrowings [line items]
Total initial gross proceeds	$ 10,000
Adjustment to interest rate basis (as a percent)	2%
Minimum percentage of revenue for the same fiscal quarter in the prior fiscal year as financial covenant	15%
Amount repaid	$ 208

Long-term debt - Purchase warra

Long-term debt - Purchase warrants issued to CIBC (Details) $ in Thousands			12 Months Ended
	Nov. 03, 2022 $ / shares shares	Jul. 30, 2018 $ / shares shares	Dec. 31, 2022 USD ($) $ / shares	Dec. 31, 2021 USD ($) $ / shares
Disclosure of detailed information about borrowings [line items]
Fair value of warrants | $			$ 418
November 3, 2022
Variables used to determine the fair value of warrants
Share price	$ 5.38		$ 14.48
Volatility	72%		70%
Expected life of warrants	7 years		6 years 10 months 24 days
Risk free interest rate	3.42%		3.30%
July 30, 2018
Variables used to determine the fair value of warrants
Share price			$ 14.48	$ 14.26
Volatility			84%	61%
Expected life of warrants			7 months 6 days	1 year 7 months 6 days
Risk free interest rate			4.07%	0.94%
CIBC loan
Disclosure of detailed information about borrowings [line items]
Number of warrants issued | shares	47,287	32,171
Number of common share that each warrant entitles the holder | shares	1	1
Purchase warrant price per common share	$ 5.29	$ 9.70
Term of the warrant	10 years	60 months
Fair value of warrants | $			$ 145	$ 161

Lease liabilities (Details)

Lease liabilities (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Lease liabilities
Balance Beginning of period	$ 1,377	$ 1,676
Repayments	(312)	(386)
Foreign exchange	(68)	2
Addition		18
Interest and accretion expense	59	67
Balance End of period	1,056	1,377
Less: Current portion	239	250
Long-term portion	$ 817	$ 1,127

Share capital - Common shares (

Share capital - Common shares (Details) - USD ($) $ / shares in Units, $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Share capital
Common shares issued	20,879,497	20,776,217
Common shares, par value	$ 0	$ 0
Common shares issued and outstanding	$ 205,825	$ 219,579

Share capital - Summary of warr

Share capital - Summary of warrants outstanding (Details) - USD ($) $ / shares in Units, $ in Thousands	1 Months Ended	12 Months Ended
	Jan. 31, 2023	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Number of warrants
Opening balance	772,270	724,983	1,223,744
Expired			(13,600)
Exercised			(485,161)
Granted		47,287
Ending balance		772,270	724,983	1,223,744
Weighted average exercise price
Opening balance	$ 13.29	$ 13.81	$ 14.35
Expired			15.50
Exercised			15.33
Granted		5.29
Ending balance		$ 13.29	$ 13.81	$ 14.35
Weighted average remaining contractual life (years)
Weighted Average Remaining Contractual Life		9 months 25 days	1 year 2 months 23 days	1 year 8 months 4 days
Exercised			3 months 25 days
Granted		9 years 9 months 18 days
Total cash proceeds			$ 5,838
Subsequent
Number of warrants
Exercised	31,535
Weighted average remaining contractual life (years)
Total cash proceeds	$ 326

Share-based payments - Share op

Share-based payments - Share options (Details)									12 Months Ended
	Dec. 20, 2022 Options	Aug. 15, 2022 Options	Dec. 30, 2021 Options	Nov. 15, 2021 Options	Jun. 17, 2021 Options	May 21, 2021 Options	Mar. 11, 2021 Options	May 20, 2020 Options	Dec. 31, 2022 EquityInstruments Options shares	Dec. 31, 2021 Options EquityInstruments
Share-based payments
Number of share options issued	4,000	25,200	105,071	24,500	1,000	555,464	12,000		29,200	698,035
Number of each option granted to purchase common shares | shares									1
Share Option Plan
Share-based payments
Number of share options issued								2,714,335
Number of trading shares preceding the date the share option granted | EquityInstruments									1,511,773	2,092,596
Number of trading days preceding the date the share option granted									5 days
Maximum term of share options granted									10 years
Maximum period of share options vested									4 years

Share-based payments - Share _2

Share-based payments - Share option changes and outstanding (Details)								12 Months Ended
	Dec. 20, 2022 Options	Aug. 15, 2022 Options	Dec. 30, 2021 Options	Nov. 15, 2021 Options	Jun. 17, 2021 Options	May 21, 2021 Options	Mar. 11, 2021 Options	Dec. 31, 2022 Options $ / shares	Dec. 31, 2021 Options $ / shares
Share-based payments
Number of option, Opening Balance | Options								2,092,596	1,522,362
Granted | Options	4,000	25,200	105,071	24,500	1,000	555,464	12,000	29,200	698,035
Exercised | Options								(40,542)	(79,208)
Forfeited/expired | Options								(569,481)	(48,593)
Number of option, Ending Balance | Options								1,511,773	2,092,596
Weighted average exercise price, Opening balance | $ / shares								$ 16.90	$ 14.05
Granted | $ / shares								9.65	22.21
Exercised | $ / shares								8.45	9.72
Forfeited/expired | $ / shares								17.49	15.46
Weighted average exercise price, Ending balance | $ / shares								$ 16.07	$ 16.90

Share-based payments - Estimate

Share-based payments - Estimated the fair value of the share options granted (Details)								12 Months Ended
	Dec. 20, 2022 Options Y $ / shares	Aug. 15, 2022 Options Y $ / shares	Dec. 30, 2021 Y Options $ / shares	Nov. 15, 2021 Y Options $ / shares	Jun. 17, 2021 Y Options $ / shares	May 21, 2021 Options Y $ / shares	Mar. 11, 2021 Y Options $ / shares	Dec. 31, 2022 Options	Dec. 31, 2021 Options
Share-based payments
Exercise price | $ / shares	$ 12.46	$ 9.20	$ 14.90	$ 14.96	$ 23.14	$ 22.08	$ 28.16
Expected volatility	71%	68%	84%	84%	85%	85%	84%
Expected life of options | Y	6	6	6	6	6	6	6
Risk-free interest rate	2.95%	2.76%	1.69%	1.54%	1.25%	1.34%	1.09%
Number of share options issued | Options	4,000	25,200	105,071	24,500	1,000	555,464	12,000	29,200	698,035

Share-based payments - Share _3

Share-based payments - Share options outstanding (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2022 USD ($)	Dec. 31, 2021 USD ($) Options	Dec. 31, 2022 Options $ / shares	Dec. 31, 2020 Options
Disclosure of terms and conditions of share-based payment arrangement [line items]
Number of options outstanding		2,092,596	1,511,773	1,522,362
Weighted average remaining contractual life (years)	6 years 11 months 23 days
Number of options exercisable			998,973
Compensation expense | $	$ 4,238	$ 7,205
Share option
Disclosure of terms and conditions of share-based payment arrangement [line items]
Compensation expense | $	$ 2,514	$ 5,891
Exercise Price 2.01 - 4.00
Disclosure of terms and conditions of share-based payment arrangement [line items]
Number of options outstanding			1,800
Weighted average remaining contractual life (years)	5 months 15 days
Number of options exercisable			1,800
Exercise Price 2.01 - 4.00 | Bottom of range
Disclosure of terms and conditions of share-based payment arrangement [line items]
Exercise price | $ / shares			$ 2.01
Exercise Price 2.01 - 4.00 | Top of range
Disclosure of terms and conditions of share-based payment arrangement [line items]
Exercise price | $ / shares			$ 4
Exercise Price 8.01 - 10.00
Disclosure of terms and conditions of share-based payment arrangement [line items]
Number of options outstanding			349,697
Weighted average remaining contractual life (years)	4 years 6 months 21 days
Number of options exercisable			297,383
Exercise Price 8.01 - 10.00 | Bottom of range
Disclosure of terms and conditions of share-based payment arrangement [line items]
Exercise price | $ / shares			$ 8.01
Exercise Price 8.01 - 10.00 | Top of range
Disclosure of terms and conditions of share-based payment arrangement [line items]
Exercise price | $ / shares			$ 10
Exercise Price 10.01 - 12.00
Disclosure of terms and conditions of share-based payment arrangement [line items]
Number of options outstanding			121,262
Weighted average remaining contractual life (years)	5 years 5 months 1 day
Number of options exercisable			109,018
Exercise Price 10.01 - 12.00 | Bottom of range
Disclosure of terms and conditions of share-based payment arrangement [line items]
Exercise price | $ / shares			$ 10.01
Exercise Price 10.01 - 12.00 | Top of range
Disclosure of terms and conditions of share-based payment arrangement [line items]
Exercise price | $ / shares			$ 12
Exercise Price 12.01 - 14.00
Disclosure of terms and conditions of share-based payment arrangement [line items]
Number of options outstanding			12,300
Weighted average remaining contractual life (years)	6 years 9 months 18 days
Exercise Price 12.01 - 14.00 | Bottom of range
Disclosure of terms and conditions of share-based payment arrangement [line items]
Exercise price | $ / shares			$ 12.01
Exercise Price 12.01 - 14.00 | Top of range
Disclosure of terms and conditions of share-based payment arrangement [line items]
Exercise price | $ / shares			$ 14
Exercise Price 14.01 - 16.00
Disclosure of terms and conditions of share-based payment arrangement [line items]
Number of options outstanding			148,281
Weighted average remaining contractual life (years)	6 years 3 months 7 days
Number of options exercisable			129,284
Exercise Price 14.01 - 16.00 | Bottom of range
Disclosure of terms and conditions of share-based payment arrangement [line items]
Exercise price | $ / shares			$ 14.01
Exercise Price 14.01 - 16.00 | Top of range
Disclosure of terms and conditions of share-based payment arrangement [line items]
Exercise price | $ / shares			$ 16
Exercise Price 16.01 - 18.00
Disclosure of terms and conditions of share-based payment arrangement [line items]
Number of options outstanding			435,189
Weighted average remaining contractual life (years)	7 years 5 months 1 day
Number of options exercisable			59,086
Exercise Price 16.01 - 18.00 | Bottom of range
Disclosure of terms and conditions of share-based payment arrangement [line items]
Exercise price | $ / shares			$ 16.01
Exercise Price 16.01 - 18.00 | Top of range
Disclosure of terms and conditions of share-based payment arrangement [line items]
Exercise price | $ / shares			$ 18
Exercise Price 20.01 - 22.00
Disclosure of terms and conditions of share-based payment arrangement [line items]
Number of options outstanding			600
Weighted average remaining contractual life (years)	7 years 7 months 17 days
Number of options exercisable			229,319
Exercise Price 20.01 - 22.00 | Bottom of range
Disclosure of terms and conditions of share-based payment arrangement [line items]
Exercise price | $ / shares			$ 20.01
Exercise Price 20.01 - 22.00 | Top of range
Disclosure of terms and conditions of share-based payment arrangement [line items]
Exercise price | $ / shares			$ 22
Exercise Price 22.01 - 24.00
Disclosure of terms and conditions of share-based payment arrangement [line items]
Number of options outstanding			430,744
Weighted average remaining contractual life (years)	8 years 3 months 7 days
Number of options exercisable			171,735
Exercise Price 22.01 - 24.00 | Bottom of range
Disclosure of terms and conditions of share-based payment arrangement [line items]
Exercise price | $ / shares			$ 22.01
Exercise Price 22.01 - 24.00 | Top of range
Disclosure of terms and conditions of share-based payment arrangement [line items]
Exercise price | $ / shares			$ 24
Exercise Price 24.01 - 26.00
Disclosure of terms and conditions of share-based payment arrangement [line items]
Number of options outstanding			1,900
Weighted average remaining contractual life (years)	7 years 11 months 4 days
Number of options exercisable			1,152
Exercise Price 24.01 - 26.00 | Bottom of range
Disclosure of terms and conditions of share-based payment arrangement [line items]
Exercise price | $ / shares			$ 24.01
Exercise Price 24.01 - 26.00 | Top of range
Disclosure of terms and conditions of share-based payment arrangement [line items]
Exercise price | $ / shares			$ 26
Exercise Price 28.01 - 30.00
Disclosure of terms and conditions of share-based payment arrangement [line items]
Number of options outstanding			10,000
Weighted average remaining contractual life (years)	8 years 2 months 12 days
Number of options exercisable			196
Exercise Price 28.01 - 30.00 | Bottom of range
Disclosure of terms and conditions of share-based payment arrangement [line items]
Exercise price | $ / shares			$ 28.01
Exercise Price 28.01 - 30.00 | Top of range
Disclosure of terms and conditions of share-based payment arrangement [line items]
Exercise price | $ / shares			$ 30

Share-based payments - Long ter

Share-based payments - Long term incentive plan (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2022 USD ($) shares	Dec. 31, 2022 $ / shares shares	Dec. 31, 2021 USD ($) shares	Dec. 31, 2020 shares
DSU
Disclosure of terms and conditions of share-based payment arrangement [line items]
Outstanding	60,000	60,000	0
RSUs
Disclosure of terms and conditions of share-based payment arrangement [line items]
Granted	385,083		241,500
Outstanding	443,861	443,861	232,317	8,717
LTIP
Disclosure of terms and conditions of share-based payment arrangement [line items]
Share-based compensation expense | $	$ 1,724		$ 1,314
LTIP | DSU
Disclosure of terms and conditions of share-based payment arrangement [line items]
Granted	60,000
Outstanding	60,000	60,000
LTIP | RSUs
Disclosure of terms and conditions of share-based payment arrangement [line items]
Restricted stock units, Shares authorized	385,083
Vesting period	3 years
LTIP | Bottom of range | RSUs
Disclosure of terms and conditions of share-based payment arrangement [line items]
Restricted stock units, Market price | $ / shares		$ 9.41
LTIP | Top of range | RSUs
Disclosure of terms and conditions of share-based payment arrangement [line items]
Restricted stock units, Market price | $ / shares		$ 10.93

Share-based payments - RSUs (De

Share-based payments - RSUs (Details) - RSUs - shares	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Disclosure of terms and conditions of share-based payment arrangement [line items]
Opening Balance	232,317	8,717
Granted	385,083	241,500
Vested	(62,738)	(2,900)
Forfeited	(110,801)	(15,000)
Ending Balance	443,861	232,317	8,717
Weighted average remaining contractual life (years)	2 years 4 months 17 days	2 years 5 months 12 days	2 years 4 months 20 days
Granted	3 years	3 years
Forfeited	2 years 1 month 20 days	2 years 4 months 20 days

Revenue (Details)

Revenue (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Revenue
Contracts with customers	$ 5,971	$ 6,443
Leasing	710	430
Total revenue	6,681	6,873
Capital equipment
Revenue
Contracts with customers	2,004	3,150
Total revenue	2,004	3,150
Recurring - non-capital
Revenue
Contracts with customers	3,967	3,293
Leasing	710	430
Total revenue	$ 4,677	$ 3,723

Nature of expenses (Details)

Nature of expenses (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Nature of expenses
Production and manufacturing costs	$ 2,397	$ 2,738
Salaries and benefits	14,942	12,835
Consulting fees	4,146	4,076
Research and development expenses	2,839	3,358
Impairment of goodwill	2,524
Sales and marketing expenses	1,711	1,127
Amortization and depreciation	1,604	1,879
Share-based compensation	4,238	7,205
Rent	496	250
Software/hardware	1,003	619
Insurance	1,239	1,397
Office and shop supplies	683	415
Other expenses	985	1,265
Nature of expenses, total	$ 38,807	$ 37,164

Net finance (income) costs (Det

Net finance (income) costs (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Net finance (income) costs
Change in fair value of derivative financial instrument	$ 275	$ (293)
Lease liability interest expense	59	67
Interest income	(803)	(205)
Change in amortized cost of trade and other receivables	(290)	448
CIBC loan interest expense	115
Foreign exchange loss /(gain)	(3,100)	286
Net finance costs, total	$ (3,744)	$ 303

Income taxes (Details)

Income taxes (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Income taxes
Loss before income taxes	$ 28,382	$ 30,594
Recovery based on combined federal and provincial statutory rate of 25.48% (2021 - 25.48%)	(7,232)	(7,795)
Permanent differences	1,082	1,608
Change in deferred tax assets not recognized	6,440	6,287
Effect of tax rates in foreign jurisdictions	(3)	5
Net income tax expense	$ 287	$ 105
Federal and provincial statutory rate (as a percent)	25.48%	25.48%
Non-capital loss carry-forwards	$ 112,075
SR&ED expenditures	15,380
Federal and provincial tax credits	$ 3,259

Loss per share (Details)

Loss per share (Details) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Loss per share
Net loss for the year	$ 28,669	$ 30,699
Weighted average number of common shares	20,829,861	20,464,168
Basic loss per share	$ 1.38	$ 1.50
Diluted loss per share	$ 1.38	$ 1.50
Share options	1,511,773	2,092,596
Warrants	772,270	724,983
Exercisable	1,771,243	1,510,396
RSU
Loss per share
RSUs and DSUs	443,681	232,317
DSU
Loss per share
RSUs and DSUs	60,000	0

Financial assets and liabilit_3

Financial assets and liabilities (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Fair value through profit or loss
Financial assets and liabilities
Financial liabilities	$ 563	$ 161
Financial liabilities at amortized cost
Financial assets and liabilities
Financial liabilities	10,263	4,557
Accounts payable and accrued liabilities | Financial liabilities at amortized cost
Financial assets and liabilities
Financial liabilities	2,033	3,180
Lease liabilities | Financial liabilities at amortized cost
Financial assets and liabilities
Financial liabilities	1,056	1,377
Derivative financial instrument | Fair value through profit or loss
Financial assets and liabilities
Financial liabilities	563	161
Long-term debt | Financial liabilities at amortized cost
Financial assets and liabilities
Financial liabilities	7,174
Financial assets at amortized cost
Financial assets and liabilities
Financial assets	52,861	72,186
Cash | Financial assets at amortized cost
Financial assets and liabilities
Financial assets	46,517	67,152
Trade and other receivables | Financial assets at amortized cost
Financial assets and liabilities
Financial assets	$ 6,344	$ 5,034

Financial assets and liabilit_4

Financial assets and liabilities - Risk Management Strategy (Details) - Interest rate risk - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Reasonably possible increase in interest rates
Loss before income taxes due to 1% higher interest rate on the average cash balance	$ 376	$ 515
Loss before income taxes due to 1% higher interest rate on the average long-term debt balance	$ 72	$ 0

Financial assets and liabilit_5

Financial assets and liabilities - Risk Management Strategy and Loss before income taxes (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Reasonably possible increase in interest rates
Reasonably possible increase in interest rates	5%
Loss before income taxes	$ 415	$ 788
Currency risk | Accounts payable and accrued liabilities
Reasonably possible increase in interest rates
Financial liabilities	(2,033)	(3,180)
Currency risk | Other Liabilities
Reasonably possible increase in interest rates
Financial liabilities		(161)
Currency risk | Derivative financial instrument
Reasonably possible increase in interest rates
Financial liabilities	(563)
Currency risk | Lease liabilities
Reasonably possible increase in interest rates
Financial liabilities	(1,056)	(1,377)
Currency risk | Long-term debt
Reasonably possible increase in interest rates
Financial liabilities	(7,174)
Currency risk | Cash
Reasonably possible increase in interest rates
Financial assets	46,517	67,152
Currency risk | Trade and other receivables
Reasonably possible increase in interest rates
Financial assets	6,344	5,034
Currency risk | US dollars | Accounts payable and accrued liabilities
Reasonably possible increase in interest rates
Financial liabilities	(288)	(372)
Currency risk | US dollars | Cash
Reasonably possible increase in interest rates
Financial assets	32,897	47,765
Currency risk | US dollars | Trade and other receivables
Reasonably possible increase in interest rates
Financial assets	1,118	4,310
Currency risk | Euro | Accounts payable and accrued liabilities
Reasonably possible increase in interest rates
Financial liabilities	(521)	(1,030)
Currency risk | Euro | Cash
Reasonably possible increase in interest rates
Financial assets	365	1,349
Currency risk | Euro | Trade and other receivables
Reasonably possible increase in interest rates
Financial assets	1,074	421
Currency risk | Canadian dollars | Accounts payable and accrued liabilities
Reasonably possible increase in interest rates
Financial liabilities	(1,208)	(1,759)
Currency risk | Canadian dollars | Other Liabilities
Reasonably possible increase in interest rates
Financial liabilities		(161)
Currency risk | Canadian dollars | Derivative financial instrument
Reasonably possible increase in interest rates
Financial liabilities	(563)
Currency risk | Canadian dollars | Lease liabilities
Reasonably possible increase in interest rates
Financial liabilities	(1,056)	(1,368)
Currency risk | Canadian dollars | Long-term debt
Reasonably possible increase in interest rates
Financial liabilities	(7,174)
Currency risk | Canadian dollars | Cash
Reasonably possible increase in interest rates
Financial assets	13,214	17,984
Currency risk | Canadian dollars | Trade and other receivables
Reasonably possible increase in interest rates
Financial assets	4,152	303
Currency risk | Chinese renminbi | Accounts payable and accrued liabilities
Reasonably possible increase in interest rates
Financial liabilities	(16)	(19)
Currency risk | Chinese renminbi | Lease liabilities
Reasonably possible increase in interest rates
Financial liabilities		(9)
Currency risk | Chinese renminbi | Cash
Reasonably possible increase in interest rates
Financial assets	$ 41	$ 54

Financial assets and liabilit_6

Financial assets and liabilities - Liquidity risk (Details) - Liquidity risk [member] - USD ($)	Dec. 31, 2022	Dec. 31, 2021
Disclosure of maturity analysis for non-derivative financial liabilities
Carrying amount	$ 10,263,000	$ 4,557
Future cash flows	12,531,000	4,755
Not later than one year [member]
Disclosure of maturity analysis for non-derivative financial liabilities
Future cash flows	3,458,000	3,501
Later than one year and not later than five years [member]
Disclosure of maturity analysis for non-derivative financial liabilities
Future cash flows	9,073,000	1,254
Accounts Payable and Accrued Liabilities [member]
Disclosure of maturity analysis for non-derivative financial liabilities
Carrying amount	2,033,000	3,180,000
Future cash flows	2,033,000	3,180,000
Accounts Payable and Accrued Liabilities [member] | Not later than one year [member]
Disclosure of maturity analysis for non-derivative financial liabilities
Future cash flows	2,033,000	3,180,000
Long-term borrowings [member]
Disclosure of maturity analysis for non-derivative financial liabilities
Carrying amount	7,174,000
Future cash flows	9,324,000
Long-term borrowings [member] | Not later than one year [member]
Disclosure of maturity analysis for non-derivative financial liabilities
Future cash flows	1,134,000
Long-term borrowings [member] | Later than one year and not later than five years [member]
Disclosure of maturity analysis for non-derivative financial liabilities
Future cash flows	8,190,000
Lease liabilities [member]
Disclosure of maturity analysis for non-derivative financial liabilities
Carrying amount	1,056,000	1,377,000
Future cash flows	1,174,000	1,575,000
Lease liabilities [member] | Not later than one year [member]
Disclosure of maturity analysis for non-derivative financial liabilities
Future cash flows	291,000	321,000
Lease liabilities [member] | Later than one year and not later than five years [member]
Disclosure of maturity analysis for non-derivative financial liabilities
Future cash flows	$ 883,000	$ 1,254,000

Related party transactions (Det

Related party transactions (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Related party transactions
Salaries and employee benefits	$ 2,054	$ 1,989
Directors' fees	296	233
Share-based compensation	2,272	3,182
Remuneration of directors and the senior management team	$ 4,622	$ 5,404

Capital management (Details)

Capital management (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Capital management
Common shares	$ 205,825	$ 219,579
Deficit	(189,362)	(160,693)
Long-term debt	7,174
Capital structure	$ 23,637	$ 58,886

Segment reporting (Details)

Segment reporting (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2022 USD ($) segment	Dec. 31, 2021 USD ($)
Revenue
Operating segment | segment	1
Capital equipment	$ 2,004	$ 3,150
Recurring - non-capital	4,677	3,723
Total revenue	6,681	6,873
Canada
Revenue
Capital equipment	986	1,724
Recurring - non-capital	504	353
Total revenue	1,490	2,077
USA
Revenue
Capital equipment	218
Recurring - non-capital	3,177	2,090
Total revenue	3,395	2,090
Germany
Revenue
Capital equipment	800	1,426
Recurring - non-capital	996	1,280
Total revenue	$ 1,796	$ 2,706

Segment reporting - Other finan

Segment reporting - Other financial information (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Geographical areas
Total assets	$ 64,421	$ 86,775
Intangible assets	680	4,124
Property and equipment	899	788	$ 859
Right-of-use assets	818	1,116
Amortization of intangible assets	704	1,029
Depreciation of property and equipment	672	518
Depreciation of right-of-use assets	228	332
Canada
Geographical areas
Total assets	57,694	81,529
Intangible assets	680	4,124
Property and equipment	212	490
Right-of-use assets	818	1,106
Amortization of intangible assets	704	1,029
Depreciation of property and equipment	59	408
Depreciation of right-of-use assets	219	234
USA
Geographical areas
Total assets	3,010	2,068
Property and equipment	687	298
Depreciation of property and equipment	613	110
Germany
Geographical areas
Total assets	1,288	1,445
China
Geographical areas
Total assets	56	81
Right-of-use assets		10
Depreciation of right-of-use assets	9	8
Finland
Geographical areas
Total assets	$ 2,373	1,652
Depreciation of right-of-use assets		$ 90