Document and Entity Information
Document and Entity Information | 9 Months Ended |
Sep. 30, 2019 | |
Document and Entity Information [Abstract] | |
Entity Registrant Name | ELECTRAMECCANICA VEHICLES CORP. |
Entity Central Index Key | 0001637736 |
Amendment Flag | false |
Document Fiscal Period Focus | Q3 |
Current Fiscal Year End Date | --12-31 |
Document Type | 6-K |
Document Period End Date | Sep. 30, 2019 |
Document Fiscal Year Focus | 2019 |
Condensed Unaudited Consolidate
Condensed Unaudited Consolidated Statements of Financial Position - CAD ($) | Sep. 30, 2019 | Dec. 31, 2018 | |
Current assets | |||
Cash and cash equivalents | $ 16,225,503 | $ 18,926,933 | |
Receivables | 387,131 | 1,190,689 | |
Prepaid expenses | 6,228,244 | 2,268,776 | |
Inventory | 864,816 | 420,737 | |
Current assets | 23,705,694 | 22,807,135 | |
Non-current assets | |||
Restricted cash | 109,665 | 110,707 | |
Plant and equipment | 10,172,987 | 5,323,766 | |
Goodwill and other intangible assets | 1,240,381 | 1,239,123 | |
TOTAL ASSETS | 35,228,727 | 29,480,731 | |
Current liabilities | |||
Trade payables and accrued liabilities | 1,185,978 | 1,262,861 | |
Customer deposits | 436,499 | 303,076 | |
Construction contract liability | 63,540 | 99,707 | |
Shareholder loan | 3,115 | 6,230 | |
Deferred income tax | 93,725 | 149,794 | |
Current portion of lease liabilities | 633,883 | ||
Total Current Liabilities | 2,416,740 | 1,821,668 | |
Non-current liabilities | |||
Derivative liability | [1] | 7,558,659 | 4,752,875 |
Lease liabilities | 1,000,852 | ||
TOTAL LIABILITIES | 10,976,251 | 6,574,543 | |
EQUITY | |||
Share capital | 66,504,106 | 46,622,299 | |
Deficit | (54,055,821) | (31,373,697) | |
Reserves | 11,804,191 | 7,657,586 | |
TOTAL EQUITY | 24,252,476 | 22,906,188 | |
TOTAL LIABILITIES AND EQUITY | $ 35,228,727 | $ 29,480,731 | |
[1] | Footnote: The warrant derivative liability is valued at fair value in accordance with International Financial Reporting Standards (“IFRS”). There are no circumstances in which the Company would be required to pay cash upon exercise or expiry of the warrants. See Note 10. |
Condensed Unaudited Consolida_2
Condensed Unaudited Consolidated Statements of Comprehensive Loss - CAD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Condensed Unaudited Consolidated Statements of Comprehensive Loss | ||||
Revenue | $ 200,068 | $ 189,902 | $ 461,334 | $ 635,401 |
Cost of revenue | 134,470 | 140,095 | 397,274 | 435,414 |
Gross profit | 65,598 | 49,807 | 64,060 | 199,987 |
Operating expenses | ||||
Amortization | 268,932 | 68,917 | 798,912 | 197,332 |
General and administrative expenses | 2,323,858 | 1,686,525 | 5,828,196 | 3,595,998 |
Research and development expenses | 3,266,756 | 905,811 | 6,825,816 | 4,184,587 |
Sales and marketing expenses | 452,808 | 356,806 | 1,265,346 | 833,050 |
Stock-based compensation expense | 1,597,779 | 644,228 | 4,148,806 | 2,528,643 |
Share-based payment expense (recovery) | (39,426) | 312,960 | 206,516 | 935,837 |
Operating expense | 7,870,707 | 3,975,247 | 19,073,592 | 12,275,447 |
Loss before other items | (7,805,109) | (3,925,440) | (19,009,532) | (12,075,460) |
Other items | ||||
Interest income | 152,561 | 94,478 | ||
Issue costs allocated to derivative liability | (627,821) | (627,821) | ||
Changes in fair value of derivative liability | 2,107,474 | 1,919,072 | (3,412,917) | 4,945,126 |
Other income | 17,711 | 71,639 | ||
Foreign exchange gain (loss) | 186,848 | (256,131) | (479,721) | (152,354) |
Loss before taxes | (5,340,515) | (2,890,320) | (22,736,053) | (7,910,509) |
Current income tax expense | 2,140 | |||
Deferred income tax recovery | (6,894) | (56,069) | ||
Net loss | (5,333,621) | (2,890,320) | (22,682,124) | (7,910,509) |
Other comprehensive income - foreign currency translation | 14,257 | 250 | (10,330) | |
Comprehensive loss | $ (5,347,878) | $ (2,890,570) | $ (22,671,794) | $ (7,910,509) |
Loss per share - basic and fully diluted (in dollars per share) | $ (0.14) | $ (0.11) | $ (0.64) | $ (0.31) |
Weighted average number of shares outstanding - basic and fully diluted (in shares) | 36,957,731 | 26,687,607 | 35,651,311 | 25,287,764 |
Condensed Unaudited Consolida_3
Condensed Unaudited Consolidated Statements of Changes in Equity - CAD ($) | Share capital | Share subscription | Share-based payment reserve | Foreign Currency Translation Reserve | Deficit | Total |
Beginning balance at Dec. 31, 2017 | $ 22,718,282 | $ 750,000 | $ 3,518,286 | $ (21,335,552) | $ 5,651,016 | |
Beginning balance, shares at Dec. 31, 2017 | 23,794,106 | |||||
Shares issued for cash | $ 3,196,610 | (750,000) | 2,446,610 | |||
Shares issued for cash (in shares) | 757,138 | |||||
Shares issued on exercise of options | $ 31,669 | (19,274) | 12,395 | |||
Shares issued on exercise of options (in shares) | 6,198 | |||||
Adjustment for warrant derivative liability | $ (676,967) | (676,967) | ||||
Share issued for finders fees | $ 23,678 | 23,678 | ||||
Share issued for finders fees (in shares) | 2,286 | |||||
Stock-based compensation | 790,234 | 790,234 | ||||
Comprehensive loss for the period | (2,403,974) | (2,403,974) | ||||
Ending balance at Mar. 31, 2018 | $ 25,293,272 | 4,289,246 | (23,739,526) | 5,842,992 | ||
Ending balance, shares at Mar. 31, 2018 | 24,559,728 | |||||
Beginning balance at Dec. 31, 2017 | $ 22,718,282 | $ 750,000 | 3,518,286 | (21,335,552) | 5,651,016 | |
Beginning balance, shares at Dec. 31, 2017 | 23,794,106 | |||||
Comprehensive loss for the period | (7,910,509) | |||||
Ending balance at Sep. 30, 2018 | $ 39,317,540 | 6,752,955 | $ (250) | (29,246,061) | 16,824,184 | |
Ending balance, shares at Sep. 30, 2018 | 27,786,111 | |||||
Beginning balance at Mar. 31, 2018 | $ 25,293,272 | 4,289,246 | (23,739,526) | 5,842,992 | ||
Beginning balance, shares at Mar. 31, 2018 | 24,559,728 | |||||
Shares issued for cash | $ 3,002,985 | 3,002,985 | ||||
Shares issued for cash (in shares) | 425,405 | |||||
Shares issued for services | $ 622,877 | 622,877 | ||||
Shares issued for services (in shares) | 75,000 | |||||
Stock-based compensation | 1,094,181 | 1,094,181 | ||||
Comprehensive loss for the period | (2,616,215) | (2,616,215) | ||||
Ending balance at Jun. 30, 2018 | $ 28,919,134 | 5,383,427 | (26,355,741) | 7,946,820 | ||
Ending balance, shares at Jun. 30, 2018 | 25,060,133 | |||||
Shares issued for cash | $ 9,408,479 | 725,300 | 10,133,779 | |||
Shares issued for cash (in shares) | 2,625,978 | |||||
Shares issued for services | $ 312,960 | 312,960 | ||||
Shares issued for services (in shares) | 100,000 | |||||
Adjustment for warrant derivative liability | $ 676,967 | 676,967 | ||||
Stock-based compensation | 644,228 | 644,228 | ||||
Comprehensive loss for the period | (250) | (2,890,320) | (2,890,570) | |||
Ending balance at Sep. 30, 2018 | $ 39,317,540 | 6,752,955 | (250) | (29,246,061) | 16,824,184 | |
Ending balance, shares at Sep. 30, 2018 | 27,786,111 | |||||
Beginning balance at Dec. 31, 2018 | $ 46,622,299 | 7,667,591 | (10,005) | (31,373,697) | 22,906,188 | |
Beginning balance, shares at Dec. 31, 2018 | 32,332,343 | |||||
Shares issued for cash | $ 14,725,221 | 14,725,221 | ||||
Shares issued for cash (in shares) | 3,333,334 | |||||
Shares issued pursuant to exercise of warrants | $ 4,657,266 | 4,657,266 | ||||
Shares issued pursuant to exercise of warrants (in shares) | 1,046,300 | |||||
Shares issued for services | $ 201,077 | 201,077 | ||||
Shares issued for services (in shares) | 93,020 | |||||
Stock-based compensation | 1,999,992 | 1,999,992 | ||||
Comprehensive loss for the period | 2,683 | (20,629,865) | (20,627,182) | |||
Ending balance at Mar. 31, 2019 | $ 66,205,863 | 9,667,583 | (7,322) | (52,003,562) | 23,862,562 | |
Ending balance, shares at Mar. 31, 2019 | 36,804,997 | |||||
Beginning balance at Dec. 31, 2018 | $ 46,622,299 | 7,667,591 | (10,005) | (31,373,697) | 22,906,188 | |
Beginning balance, shares at Dec. 31, 2018 | 32,332,343 | |||||
Comprehensive loss for the period | (22,671,794) | |||||
Ending balance at Sep. 30, 2019 | $ 66,504,106 | 11,803,866 | 325 | (54,055,821) | 24,252,476 | |
Ending balance, shares at Sep. 30, 2019 | 36,952,820 | |||||
Beginning balance at Mar. 31, 2019 | $ 66,205,863 | 9,667,583 | (7,322) | (52,003,562) | 23,862,562 | |
Beginning balance, shares at Mar. 31, 2019 | 36,804,997 | |||||
Shares issue costs | $ (10,425) | (10,425) | ||||
Shares issued pursuant to exercise of warrants | $ 145,153 | 145,153 | ||||
Shares issued pursuant to exercise of warrants (in shares) | 70,023 | |||||
Shares issued for services | $ 171,101 | 171,101 | ||||
Shares issued for services (in shares) | 41,030 | |||||
Shares issued on exercise of options | $ 47,539 | (12,531) | 35,008 | |||
Shares issued on exercise of options (in shares) | 43,760 | |||||
Stock-based compensation | 551,035 | 551,035 | ||||
Comprehensive loss for the period | 21,904 | 3,281,362 | 3,303,266 | |||
Ending balance at Jun. 30, 2019 | $ 66,559,231 | 10,206,087 | 14,582 | (48,722,200) | 28,057,700 | |
Ending balance, shares at Jun. 30, 2019 | 36,959,810 | |||||
Shares issue costs | $ (15,699) | (15,699) | ||||
Shares issued for services | $ 10,766 | 10,766 | ||||
Shares issued for services (in shares) | 3,010 | |||||
Shares cancelled | $ (50,192) | (50,192) | ||||
Shares cancelled (in shares) | (10,000) | |||||
Stock-based compensation | 1,597,779 | 1,597,779 | ||||
Comprehensive loss for the period | (14,257) | (5,333,621) | (5,347,878) | |||
Ending balance at Sep. 30, 2019 | $ 66,504,106 | $ 11,803,866 | $ 325 | $ (54,055,821) | $ 24,252,476 | |
Ending balance, shares at Sep. 30, 2019 | 36,952,820 |
Condensed Unaudited Consolida_4
Condensed Unaudited Consolidated Statements of Changes in Equity (Parentheticals) | May 15, 2018 |
Condensed Unaudited Consolidated Statements of Changes in Equity | |
Reverse stock split ratio | 2 |
Condensed Unaudited Consolida_5
Condensed Unaudited Consolidated Statements of Cash Flows - CAD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Operating activities | ||||
Net loss for the period | $ (5,333,621) | $ (2,890,320) | $ (22,682,124) | $ (7,910,509) |
Adjustments for: | ||||
Amortization | 268,932 | 68,917 | 798,912 | 197,332 |
Stock-based compensation expense | 1,597,779 | 644,228 | 4,148,806 | 2,528,643 |
Share-based payment expense (recovery) | (39,426) | 312,960 | 206,516 | 935,837 |
Interest on lease liability | 36,488 | 104,673 | ||
Changes in fair value of derivative liability | (2,107,474) | (1,919,072) | 3,412,917 | (4,945,126) |
Deferred income tax recovery | (6,894) | (56,069) | ||
Changes in non-cash working capital items: | ||||
Receivables | 1,318,042 | 229,370 | 803,558 | (154,668) |
Prepaid expenses | 851,321 | (312,906) | (3,959,468) | (155,576) |
Inventory | 198,103 | (732,551) | (444,079) | (774,166) |
Trade payables and accrued liabilities | 391,756 | (365,858) | (93,305) | 76,532 |
Customer deposits and construction contract liabilities | 41,522 | (1,862) | 97,256 | (38,159) |
Net cash flows used in operating activities | (2,783,472) | (4,967,094) | (17,662,407) | (10,239,860) |
Investing activities | ||||
Restricted cash | (589) | 1,213 | 1,042 | (107,782) |
Expenditures on plant and equipment | (2,147,066) | (1,030,641) | (3,415,881) | (3,884,515) |
Expenditures on intangible assets | (13,050) | (5,008) | ||
Net cash flows used in investing activities | (2,160,705) | (1,029,428) | (3,419,847) | (3,992,297) |
Financing activities | ||||
Repayment of bank loan | (123,637) | |||
Repayment of shareholder loan | (1,038) | (1,038) | (3,115) | (3,115) |
Repayment of promissory note | (1,500,000) | |||
Repayment of leases | (187,950) | (555,782) | ||
Proceeds on issuance of common shares - net of issue costs | (15,699) | 13,900,448 | 14,699,097 | 19,386,116 |
Proceeds from issuance of common shares for options exercised | 35,008 | |||
Proceeds from issuance of common shares for warrants exercised | 4,195,286 | |||
Net cash flows from financing activities | (204,687) | 13,899,410 | 18,370,494 | 17,759,364 |
Increase (decrease) in cash and cash equivalents | (5,148,864) | 7,902,888 | (2,771,760) | 3,527,207 |
Effect of exchange rate changes on cash and cash equivalents | (14,257) | (24) | 10,330 | (24) |
Cash and cash equivalents, beginning | 21,388,624 | 4,235,315 | 18,926,933 | 8,610,996 |
Cash and cash equivalents, ending | 16,225,503 | 12,138,179 | 16,225,503 | 12,138,179 |
Supplemental schedule of non-cash investing and financing activities | ||||
Purchase of PP&E in accounts payable | 142,658 | 566,122 | 142,658 | 566,122 |
Right-of-use assets obtained in exchange for lease liability | 2,106,966 | |||
Shares issued for services | $ (39,426) | $ 312,960 | $ 206,516 | $ 935,837 |
Nature and continuance of opera
Nature and continuance of operations | 9 Months Ended |
Sep. 30, 2019 | |
Nature and continuance of operations | |
Nature and continuance of operations | 1. ElectraMeccanica Vehicles Corp (the “Company”) was incorporated on February 16, 2015 under the laws of the province of British Columbia, Canada, and its principal activity is the development and manufacturing of electric vehicles. The Company acquired InterMeccanica International Inc. (“InterMeccanica”) on October 18, 2017 whose principal activity is the development and manufacturing of high-end custom-built vehicles. On January 22, 2018, the Company incorporated a wholly-owned subsidiary EMV Automotive USA Inc. in Nevada, USA. The head office and principal address of the Company are located at 102 East 1 st Avenue, Vancouver, British Columbia, Canada, V5T 1A4. These consolidated financial statements have been prepared on the assumption that the Company will continue as a going concern, meaning it will continue in operation for the foreseeable future and will be able to realize assets and discharge liabilities in the ordinary course of operations. As at September 30, 2019, the Company’s principal activity, the development and manufacture of electric vehicles, is in the development stage, and the Company’s continuation as a going concern is dependent upon the successful results from its electric vehicle development and manufacturing activities and its ability to attain profitable operations and generate funds there from and/or raise equity capital or borrowings sufficient to meet current and future obligations. It is anticipated that significant additional funding will be required. These factors indicate the existence of a material uncertainty that may cast significant doubt about the Company’s ability to continue as a going concern. Management intends to finance its operations over the next twelve months through private placement and/or public offerings of equity capital. Should the Company be unable to continue as a going concern, the net realizable value of its assets may be materially less than the amounts on its statement of financial position. |
Significant accounting policies
Significant accounting policies and basis of preparation | 9 Months Ended |
Sep. 30, 2019 | |
Significant accounting policies and basis of preparation | |
Significant accounting policies and basis of preparation | 2. The financial statements were authorized for issue on [November 8], 2019 by the directors of the Company. Statement of compliance with International Financial Reporting Standards These interim condensed consolidated financial statements have been prepared in accordance with International Financial Reporting Standards (“IFRS”), as issued by the International Accounting Standards Board (“IASB”). Therefore, these financial statements comply with International Accounting Standards (“IAS”) 34, Interim Financial Reporting. These interim condensed consolidated financial statements were prepared using the same accounting policies and methods as those used in the Company’s consolidated financial statements for the year ended December 31, 2018, with the exception of new accounting policies that were adopted on January 1, 2019 as described in Note 2. Accordingly, certain disclosures normally included in annual financial statements prepared in accordance with IFRS, as issued by the IASB, have been omitted or condensed. These interim condensed consolidated financial statements should be read in conjunction with the Company’s consolidated financial statements for the year ended December 31, 2018. Basis of preparation The financial statements of the Company have been prepared on an accrual basis and are based on historical costs, modified where applicable. The Company’s functional and presentation currency is Canadian dollars. Consolidation The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries, EMV Automotive USA Inc. and InterMeccanica from the date of its acquisition on October 18, 2017. Inter-company balances and transactions, including unrealized income and expenses arising from inter-company transactions, are eliminated on consolidation. Significant estimates and assumptions The preparation of financial statements in accordance with IFRS requires the Company to make estimates and assumptions concerning the future. The Company’s management reviews these estimates and underlying assumptions on an ongoing basis, based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. Revisions to estimates are adjusted for prospectively in the period in which the estimates are revised. Estimates and assumptions where there is significant risk of material adjustments to assets and liabilities in future accounting periods include the fair value of the identifiable assets and liabilities acquired from InterMeccanica, the estimated recoverable amount of goodwill, intangible assets and other long-lived assets, the useful lives of plant and equipment, the estimated amount of scientific research and experimental development (SR&ED) tax credits, fair value measurements for financial instruments and share-based payments, and the recoverability and measurement of deferred tax assets. Significant judgments The preparation of financial statements in accordance with IFRS requires the Company to make judgments, apart from those involving estimates, in applying accounting policies. The most significant judgments in applying the Company’s financial statements include: - - - Financial Instruments The Company classifies its financial instruments in the following categories: at fair value through profit or loss (“FVTPL”), at fair value through other comprehensive income (loss) (“FVTOCI”) or at amortized cost. The Company determines the classification of financial assets at initial recognition. The classification of debt instruments is driven by the Company’s business model for managing the financial assets and their contractual cash flow characteristics. Equity instruments that are held for trading are classified as FVTPL. For other equity instruments, on the day of acquisition the Company can make an irrevocable election (on an instrument-by-instrument basis) to designate them as at FVTOCI. Financial liabilities are measured at amortized cost, unless they are required to be measured at FVTPL (such as instruments held for trading or derivatives) or if the Company has opted to measure them at FVTPL. The following table shows the classification of the Company’s financial assets and liabilities Financial assets/liabilities Cash and cash equivalents Amortized cost Receivables Amortized cost Trade payables and accrued liabilities Amortized cost Shareholder loan Amortized cost Lease liabilities Amortized cost Derivative liability FVTPL Financial assets and liabilities at amortized cost are initially recognized at fair value plus or minus transaction costs, respectively, and subsequently carried at amortized cost less any impairment. Financial assets and liabilities carried at FVTPL are initially recorded at fair value and transaction costs are expensed in the consolidated statements of comprehensive loss. Realized and unrealized gains and losses arising from changes in the fair value of the financial assets and liabilities held at FVTPL are included in the consolidated statements of comprehensive loss in the period in which they arise. The Company recognizes a loss allowance for expected credit losses on financial assets that are measured at amortized cost. At each reporting date, the Company measures the loss allowance for the financial asset at an amount equal to the lifetime expected credit losses if the financial risk on the financial asset has increased significantly since initial recognition. If at the reporting date, the financial asset has not increased significantly since initial recognition, the Company measures the loss allowance for the financial asset at an amount equal to the twelve month expected credit losses. The Company shall recognize in the consolidated statements of comprehensive income (loss), as an impairment gain or loss, the amount of expected credit losses (or reversal) that is required to adjust the loss allowance at the reporting date to the amount that is required to be recognized. The Company derecognizes financial assets only when the contractual rights to cash flows from the financial assets expire, or when it transfers the financial assets and substantially all of the associated risks and rewards of ownership to another entity. Gains and losses on derecognition are generally recognized in the consolidated statements of comprehensive loss. Revenue from contracts with customers Revenue is recognized to the extent that the amount of revenue can be measured reliably and collection is probable . Part sales: Sales of parts are recognized when the Company has transferred control to the customer which generally occurs upon shipment. Services, repairs and support services: Services, repairs and support services are recognized in the accounting period when the services are rendered. Sales of custom build vehicles: The Company manufactures and sells custom built vehicles typically on fixed fee arrangements with its customers. Revenue is recognized in the accounting period in which the services are rendered, by reference to the stage of completion. The stage of completion is determined as a percentage based on the amount of costs incurred compared to the estimated cost of completion. Revenue recognized in excess of amounts billed is recorded as accounts receivable. Amounts received in excess of work performed is recorded as deferred revenue. Sales of electric vehicles: The Company will be manufacturing and selling an electric powered one-seater vehicle which has not yet been commercialized. At this time, proceeds of these sales are considered to be incidental revenue and are not being made with the expectation of profit. These are sold to ‘beta’ customers who provide real-world testing and feedback on the vehicles. The revenue generated from sales are recorded against research & development expenses. Cash and cash equivalents Cash and cash equivalents include cash and short-term investments with original maturities of 90 days or less and are presented at cost, which approximates market value. Customer deposits Customer deposits consist primarily of advance payments and billings in excess of costs incurred. Changes in customer deposits are primarily due to the timing difference between the Company’s performance of services and payments from customers. To determine revenue recognized from customer deposits during the reporting periods, the Company allocates revenue to individual customer deposit balances and applies revenue recognized during the reporting periods to the beginning balances of customer deposits until the revenue exceeds the balances. Inventory Inventory consists of parts held for resale or for use in fixed fee contracts and is valued at the lower of cost and net realizable value. Cost is determined on the first-in, first-out basis. Trademarks and patents The Company expenses legal fees and filing costs associated with the development of its trademarks and patents. Plant and equipment Plant and equipment are stated at historical cost less accumulated depreciation and accumulated impairment losses. Subsequent costs are included in the asset’s carrying amount or recognized as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the Company and the cost of the item can be measured reliably. The carrying amount of the replaced asset is derecognized. All other repairs and maintenance are charged to the statement of comprehensive loss during the financial period in which they are incurred. Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognized in the statements of comprehensive loss. Amortization is calculated on a straight-line method to write off the cost of the assets to their residual values over their estimated useful lives. The amortization rates applicable to each category of plant and equipment are as follows: Class of plant and equipment Amortization rate Furniture and equipment 20% Computer equipment 33% Computer software 50% Vehicles 33% Leasehold improvements over term of lease Right of use assets over term of lease Production tooling and molds per unit produced Share-based payments Share-based payments to employees are measured at the fair value of the instruments issued and amortized over the vesting periods. Share-based payments to non-employees are measured at the fair value of goods or services received or the fair value of the equity instruments issued, if it is determined the fair value of the goods or services cannot be reliably measured, and are recorded at the date the goods or services are received. The corresponding amounts are recorded to the share-based payment reserve. The fair value of options is determined using a Black–Scholes pricing model. The number of options expected to vest is reviewed and adjusted at the end of each reporting period such that the amount recognized for services received as consideration for the equity instruments granted shall be based on the number of equity instruments that eventually vest. Loss per share Basic loss per share is calculated by dividing the loss attributable to common shareholders by the weighted average number of common shares outstanding in the period. For all periods presented, the loss attributable to common shareholders equals the reported loss attributable to owners of the Company. Fully diluted loss per share is calculated by the treasury stock method. Under the treasury stock method, the weighted average number of common shares outstanding for the calculation of fully diluted loss per share assumes that the proceeds to be received on the exercise of dilutive share options and warrants are used to repurchase common shares at the average market price during the period. Research and development expenses Research costs are expensed when incurred and are stated net of government grants. Development costs including direct material, direct labour and contract service costs are capitalized as intangible assets when the Company can demonstrate that the technical feasibility of the project has been established; the Company intends to complete the asset for use or sale and has the ability to do so; the asset can generate probable future economic benefits; the technical and financial resources are available to complete the development; and the Company can reliably measure the expenditure attributable to the intangible asset during its development. After initial recognition, internally generated intangible assets are recorded at cost less accumulated amortization and accumulated impairment losses. These costs are amortized on a straight-line basis over the estimated useful life. To date, the Company did not have any development costs that met the capitalization criteria. Derivative liability The Company accounts for its warrants as either equity or liabilities based upon the characteristics and provisions of each instrument. Warrants classified as equity are recorded at fair value as of the date of issuance on the Company’s consolidated balance sheets and no further adjustments to their valuation are made. Warrants classified as derivative liabilities that require separate accounting as liabilities are recorded on the Company’s consolidated balance sheets at their fair value on the date of issuance and will be revalued on each subsequent balance sheet date until such instruments are exercised or expire, with any changes in the fair value between reporting periods recorded as other income or expense. Management estimates the fair value of these liabilities using option pricing models and assumptions that are based on the individual characteristics of the warrants or instruments on the valuation date, as well as assumptions for future financings, expected volatility, expected life, yield, and risk-free interest rate. Change in accounting policy - Leases In January 2016, the IASB issued IFRS 16 Leases (“IFRS 16”), which replaced IAS 17 Leases (“IAS 17”) and related interpretations. IFRS 16 introduces a single lessee accounting model eliminating the previous distinction between finance and operating leases. IFRS 16 requires the recognition of lease-related assets and liabilities on the balance sheet, except for short-term leases and leases of low value underlying assets. Lessor accounting remained substantially unchanged. The Company adopted IFRS 16 on January 1, 2019. The comparative information has not been restated and continues to be reported under IAS 17 and IFRIC 4 Determining whether an Arrangement contains a Lease. In calculating the lease liability at this date, the Company has chosen to apply a practical expedient in IFRS 16 that allows for lease and non-lease components of a contract to be combined as a single lease component. This expedient has been applied to all contracts which have been identified to contain a lease per IFRS 16. The adoption of IFRS 16 resulted in an increase of $2.1 million in total assets and total liabilities each for recognition of right-of-use assets and lease liabilities, respectively, and had no impact to opening retained earnings as at January 1, 2019. When measuring lease liabilities, the Company discounted lease payments using its incremental borrowing rate at Jan 1, 2019 of 5%-10%. Operating lease commitment at December 31, 2018 as disclosed in the Company’s consolidated financial statement $ 2,148,834 Discounting effect using the incremental borrowing rate at January 1, 2019 178,677 1,970,157 Extension options reasonably certain to be exercised 136,809 Lease liabilities recognized at January 1, 2019 $ 2,106,966 Impairment of assets The carrying amount of the Company’s long-lived assets with finite useful lives (which include plant and equipment and intangible assets) is reviewed at each reporting date to determine whether there is any indication of impairment. If such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss. An impairment loss is recognized whenever the carrying amount of an asset or its cash generating unit exceeds its recoverable amount. Impairment losses are recognized in the statement of comprehensive loss. The recoverable amount of assets is the greater of an asset’s fair value less cost to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects the current market assessments of the time value of money and the risks specific to the asset. For an asset that does not generate cash inflows largely independent of those from other assets, the recoverable amount is determined for the cash-generating unit to which the asset belongs. An impairment loss is only reversed if there is an indication that the impairment loss may no longer exist and there has been a change in the estimates used to determine the recoverable amount. Any reversal of impairment cannot increase the carrying value of the asset to an amount higher than the carrying amount that would have been determined had no impairment loss been recognized in previous years. Goodwill and other intangible assets that have an indefinite useful life are not subject to amortization and are tested annually for impairment, or more frequently if indicators of impairment exist. Income taxes Current income tax: Current income tax assets and liabilities for the current period are measured at the amount expected to be recovered from or paid to the taxation authorities. The tax rates and tax laws used to compute the amount are those that are enacted or substantively enacted, at the reporting date, in the countries where the Company operates and generates taxable income. Current income tax relating to items recognized directly in other comprehensive income or equity is recognized in other comprehensive income or equity and not in profit or loss. Management periodically evaluates positions taken in the tax returns with respect to situations in which applicable tax regulations are subject to interpretation and establishes provisions where appropriate. Tax Credits: The Company earns SR&ED tax credits with respect to its research and development expenses. The benefit of these SR&ED tax credits is recorded as a reduction of research and development expenses when their recoverability is reasonably expected. The SR&ED tax credits earned while the Company was Canadian Controlled Private Corporation are refundable to the Company and are recorded as a receivable, while the tax credits earned now that the Company is a public company (as defined under Canadian tax laws) can be used to reduce future Canadian income taxes payable. Deferred income tax: Deferred income tax is recognized, using the asset and liability method, on temporary differences at the reporting date arising between the tax bases of assets and liabilities and their carrying amounts for financial reporting purposes. The carrying amount of deferred income tax assets is reviewed at the end of each reporting period and recognized only to the extent that it is probable that sufficient taxable profit will be available to allow all or part of the deferred income tax asset to be utilized. Deferred income tax assets and liabilities are measured at the tax rates that are expected to apply to the year when the asset is realized or the liability is settled, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period. Deferred income tax assets and deferred income tax liabilities are offset if a deferred income taxes relate to the same taxable entity and the same taxation authority. |
Cash and cash equivalents
Cash and cash equivalents | 9 Months Ended |
Sep. 30, 2019 | |
Cash and cash equivalents. | |
Cash and cash equivalents | 3. For the purposes of the cash flow statement, cash and cash equivalents comprise the following balances with original term to maturity of 90 days or less: September 30, December 31, 2019 2018 Cash $ 2,312,488 $ 2,443,938 Cash equivalent 13,913,015 16,482,995 $ 16,225,503 $ 18,926,933 |
Receivables
Receivables | 9 Months Ended |
Sep. 30, 2019 | |
Receivables | |
Receivables | 4. September 30, December 31, 2019 2018 Trade receivable $ 78,913 $ 84,443 Construction contract asset 88,691 125,426 GST receivable 62,475 278,182 SR&ED tax credits receivable — 675,000 Other receivable 157,052 27,638 $ 387,131 $ 1,190,689 The amount of $125,426 included in contract assets at December 31, 2018 has been recognized as revenue during the nine-months ended September 30, 2019 (2018: $61,786). |
Plant and equipment
Plant and equipment | 9 Months Ended |
Sep. 30, 2019 | |
Plant and equipment | |
Plant and equipment | 5. Plant and equipment Computer Furniture hardware Production and and Leasehold Right-of- tooling and equipment software Vehicles Improvements use assets molds Total Cost: At December 31, 2017 290,843 73,654 390,050 101,200 — 914,060 1,769,807 Additions 203,644 59,749 — 283,141 — 3,635,888 4,182,422 Disposals — — (2,001) — — — (2,001) December 31, 2018 494,487 133,403 388,049 384,341 — 4,549,948 5,950,228 Additions 75,982 93,128 — 116,665 2,085,844 3,271,043 5,640,512 Disposals — (2,150) — — — — (2,150) September 30, 2019 570,469 224,381 388,049 501,006 2,085,844 7,820,991 11,590,740 Amortization: At December 31, 2017 188,606 27,147 85,764 74,607 — — 376,124 Charge for the year 42,192 38,542 129,487 40,117 — — 250,338 At December 31, 2018 230,798 65,689 215,251 114,724 — — 626,462 Additions 58,041 45,064 95,582 88,406 505,452 — 792,545 Disposals — (1,254) — — — — (1,254) September 30, 2019 288,839 109,499 310,833 203,130 505,452 — 1,417,753 Net book value: At December 31, 2018 $ 263,689 $ 67,714 $ 172,798 $ 269,617 $ — $ 4,549,948 $ 5,323,766 At September 30, 2019 $ 281,630 $ 114,882 $ 77,216 $ 297,876 $ 1,580,392 $ 7,820,991 $ 10,172,987 On September 29, 2017, the Company entered into a manufacturing agreement with Chongqing Zongshen Automobile Co., Ltd. (“Zongshen”). Under the agreement, the Company agreed to reimburse Zongshen for the cost of prototype tooling and molds estimated to be CNY ¥9.5 million ($1.8 million), which was payable on or before March 18, 2018, subject to a 10% holdback, and mass production tooling and molds estimated to be CNY ¥39.3 million ($7.8 million), which shall be payable 50% when Zongshen commences manufacturing the tooling and molds, 40% when Zongshen completes manufacturing the tooling and molds, and 10% upon delivery to the Company of the first production vehicle. As at September 30, 2019, the Company has completed the prototype tooling and molds with actual cost of CNY ¥10.1 million ($1.9) million), as assessed by the company, the prototype tooling and molds will be used for the mass production. The Company has paid 90% of prototype tooling and molds and 78% of the mass production tooling and molds. Depreciation on the production tooling and molds is charged on a per unit produced basis and during the period no units had been produced using the production tooling and molds. Under the agreement, the Company agreed that the minimum purchase commitments for units of the SOLO vehicle are to be as follows: 5,000 over a 12 month period from the start of mass production; over the next 12 month period, 20,000; and over the next 12 month period, 50,000, and which shall be payable following issue of Company’s purchase orders as follows: 30% 60 days prior to scheduled Zongshen production, and 70% after accepted vehicle delivery. On October 16, 2017, the CEO of the Company (“Pledgor”) entered into a Share Pledge Agreement (“Share Pledge”) to guarantee the payment by the Company for the cost of the prototype tooling and molds estimated to be CNY ¥9.5 million ($1.8 million) to Zongshen through the pledge of 400,000 common shares of the Company. The Company approved its obligations under the Share Pledge and has agreed to reimburse the Pledgor on a one-for-one basis for any pledged shares realized by Zongshen. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 9 Months Ended |
Sep. 30, 2019 | |
Goodwill and Intangible Assets | |
Goodwill and Intangible Assets | 6. September 30, December 31, 2019 2018 Identifiable intangibles $ 525,317 $ 529,067 Goodwill 699,844 699,844 Other intangibles 15,220 10,212 $ 1,240,381 $ 1,239,123 |
Trade payables and accrued liab
Trade payables and accrued liabilities | 9 Months Ended |
Sep. 30, 2019 | |
Trade payables and accrued liabilities | |
Trade payables and accrued liabilities | 7. September 30, December 31, 2019 2018 Trade payables $ 468,874 $ 635,622 Wages payables 92,890 80,573 Due to related parties (Note 16) 367,413 83,331 Accrued liabilities 256,801 463,335 $ 1,185,978 $ 1,262,861 |
Lease liabilities
Lease liabilities | 9 Months Ended |
Sep. 30, 2019 | |
Lease liabilities. | |
Lease liabilities | 8. Lease obligations relate to the Company’s rent of office space and warehouse space. The term of the leases expire on November 1, 2020, July 1, 2020, September 1, 2021 and August 1, 2022 with the Company holding an option to renew for the office space for a further five years. As at September 30, 2019, the contractual undiscounted cash flows related to leases were as follows: Present value of Future minimum minimum lease lease payments Interest payments Less than one year $ 746,394 $ 112,511 $ 633,883 Between one and five years 976,313 158,926 817,387 More than five years 196,044 12,579 183,465 $ 1,918,751 $ 284,016 1,634,735 Current portion of lease liabilities 633,883 Non-current portion of lease liabilities $ 1,000,852 |
Derivative liability
Derivative liability | 9 Months Ended |
Sep. 30, 2019 | |
Derivative liability | |
Derivative liability | 9. The exercise price of certain warrants is denominated in US dollars; however, the functional currency of the Company is the Canadian dollar. Consequently, the value of the proceeds on exercise is not fixed and will vary based on foreign exchange rate movements. The warrants when issued other than as compensation for goods and services are therefore a derivative for accounting purposes and are required to be recognized as a derivate liability and measured at fair value at each reporting period. Any changes in fair value from period to period are recorded as non-cash gain or loss in the consolidated statements of comprehensive loss. Upon exercise, the holders will pay the Company the respective exercise price for each warrant exercised in exchange for one common share of the Company and the fair value at the date of exercise and the associated non-cash liability will be reclassified to share capital. The non-cash liability associated with any warrants that expire unexercised will be recorded as a gain in the consolidated statements of comprehensive loss. There are no circumstances in which the Company would be required to pay any cash upon exercise or expiry of the warrants. During the nine months ended September 30, 2019, warrants for 646,300 shares at USD $4.25 were exercised. A reconciliation of the changes in fair values of the derivative liability is below: September 30, December 31, 2019 2018 Balance, beginning $ 4,752,875 $ 3,655,690 Warrants issued — 8,935,289 Warrants exercised (607,133) (131,053) Changes in fair value of derivative liabilities 3,412,917 (7,707,051) Balance, ending $ 7,558,659 $ 4,752,875 |
Share capital
Share capital | 9 Months Ended |
Sep. 30, 2019 | |
Share capital | |
Share capital | 10. Authorized share capital Unlimited number of common shares without par value. At September 30, 2019, the Company had 36,952,820 issued and outstanding common shares (December 31, 2018 – 32,332,343). On January 15, 2019, we issued an aggregate of 32,000 common shares to three consultants as part of their consulting agreements with our Company. On January 24, 2019, we issued 18,060 common shares to a consultant as part of their consulting agreement with our Company. On January 31, 2019, we issued 29,950 common shares to settle debt for legal services for $50,000. On February 14, 2019, we received $20,000 from our CEO for the exercise of warrants at a price of $0.80, issued 25,000 common shares of the Company. On February 14, 2019, we issued 3,010 common shares to a consultant as a part of their consulting agreement with our Company. On February 15, 2019, we received $180,000 from an investor for the exercise of warrants at a price of $0.80, we issued 225,000 common shares of the Company. On February 20, 2019, we received an aggregate of USD$2,424,625 from three investors for the exercise of warrants at a price of USD$4.25, we issued 570,500 common shares of the Company. On February 25, 2019, we received an aggregate of USD$322,150 from two investors for the exercise of warrants at a price of USD$4.25, we issued 75,800 common shares of the Company. On February 28, 2019, we received of $125,000 from an investor for the exercise of warrants at a price of $2.00, we issued 62,500 common shares of the Company. On February 28, 2019, we received of $50,000 from an investor for the exercise of warrants at a price of $2.00, we issued 25,000 common shares of the Company. On March 2, 2019, we received of $50,000 from an investor for the exercise of warrants at a price of $0.80, we issued 62,500 common shares of the Company. On March 14, 2019, we issued 10,000 common shares to a consultant as a part of their consulting agreement with our Company. On March 27, 2019, the Company issued a total of 3,333,334 common shares for gross proceeds of $16,085,772. There were 93,020 common shares issued for services with a fair value of $201,077. Share issue costs related to these issuances was $1,386,675. On April 2, 2019, we issued 13,010 common shares to consultants as a part of their consulting agreements with our Company. On April 2, 2019, we received an aggregate of $145,153 from investors for the exercise of warrants with prices ranging from $0.80 to $4.00, we issued 70,023 common shares of the Company. On May 15, 2019, we issued 25,010 common shares to consultants as a part of their consulting agreements with our Company. On June 12, 2019 we received $17,504 from our employee for the exercise of stock options for $0.80, we issued 21,880 common shares of the Company. On June 14, 2019 we received $17,504 from our employee for the exercise of stock options for $0.80, we issued 21,880 common shares of the Company. On June 17, 2019, we issued 3,010 common shares to a consultant as a part of their consulting agreement with our Company. On August 17, 2019, we issued 3,010 common shares to a consultant as a part of their consulting agreement with our Company. On August 20, 2019, the Company cancelled 10,000 common shares that were issued on April 2, 2019 to a consultant. On October 15, 2019, we received US$16,656 from investors for the exercise of stock options for $0.30, and issued 56,250 common shares of the Company. On October 15, 2019, we received $15,400 from an employee for the exercise of stock options for $0.80 to $2.00, and issued 14,567 common shares of the Company. Basic and fully diluted loss per share The calculation of basic and fully diluted loss per share for the nine-month ended September 30, 2019 was based on the loss attributable to common shareholders of $22,671,794 (September 30, 2018 - $7,910,509) and the weighted average number of common shares outstanding of 35,651,311 (2018‑ 25,287,764). Fully diluted loss per share did not include the effect of stock options and warrants as the effect would be anti-dilutive. Stock options The Company has adopted an incentive stock option plan, which provides that the Board of Directors of the Company may from time to time, in its discretion, grant to directors, officers, employees and technical consultants to the Company, non-transferable stock options to purchase common shares, provided that the number of common shares reserved for issuance will not exceed 30,000,000. Such options will be exercisable for a period of up to 7 years from the date of grant. Options may be exercised no later than 90 days following cessation of the optionee’s position with the Company. Options granted vest one-quarter on the first anniversary subsequent to the grant date and the remaining three-quarters vest in thirty-six equal monthly instalments commencing on the first anniversary of the grant date. On exercise, each option allows the holder to purchase one common share of the Company. The changes in options during the period ended September 30, 2019 are as follows: September 30, 2019 Number of options Weighted average exercise price Options outstanding, beginning 4,756,174 $ 2.73 Options granted 3,360,000 3.76 Options exercised (43,760) 0.80 Options forfeited (121,373) 8.30 Options cancelled (275,000) 11.75 Options outstanding, ending 7,676,041 $ 2.19 Details of options outstanding as at September 30, 2019 are as follows: Weighted average Number of options Number of options Exercise price contractual life outstanding exercisable $ 0.30 2.70 years 2,045,455 2,045,455 $ 0.30 2.87 years 308,522 308,522 $ 0.80 3.19 years 632,458 614,710 $ 0.80 3.44 years 12,500 11,197 $ 2.00 3.73 years 12,500 10,416 $ 2.00 4.39 years 350,622 320,562 $ 2.00 4.86 years 50,000 27,087 $ 9.60 USD 5.27 years 199,060 100,570 $ 6.18 USD 5.86 years 175,000 51,042 $ 1.53 USD 4.14 years 120,000 90,000 $ 5.00 USD 4.17 years 409,924 409,924 $ 3.40 USD 6.47 years 1,228,182 868,182 $ 2.62 USD 2.74 years 700,000 — $ 2.45 USD 6.85 years 1,250,000 208,334 $ 2.53 USD 6.86 years 181,818 21,968 4.46 years 7,676,041 5,087,969 The weighted average grant date fair value of options granted during the nine months ended September 30, 2019 was $1.83. The fair value was calculated using the Black-Scholes option pricing model using the following weighted average assumptions: Nine months ended September 30, 2019 Expected life of options 3 - 5 years Annualized volatility 62.29 % Risk-free interest rate 1.25%-1.58 % Dividend rate 0 % During the nine-month ended September 30, 2019, the Company recognized stock-based compensation expense of $4,148,806 (September 30, 2018 - $2,528,643). Warrants On exercise, each warrant allows the holder to purchase one common share of the Company. The changes in warrants during the nine months ended September 30, 2019 are as follows: September 30, 2019 December 31, 2018 Number of Weighted average Number of Weighted average warrants exercise price warrants exercise price Warrants outstanding, beginning 22,369,718 $ 5.03 11,856,857 $ 4.70 Warrants issued — — 10,807,093 5.36 Warrants exercised (1,116,323) 3.82 (294,232) 5.08 Warrants outstanding, ending 21,253,395 $ 4.41 22,369,718 $ 5.03 At September 30, 2019, all warrants outstanding, except for 212,500 placement agents’ warrants, were exercisable. Details of warrants outstanding as at September 30, 2019 are as follows: Weighted average Number of warrants Exercise Price contractual life outstanding Non-Transferable Warrants $0.80 CAD - $16.00 CAD 2.06 years 11,010,058 $2.00 USD - $24.00 USD 3.92 years 5,741,969 Transferable Warrants $4.25 USD 3.86 years 4,501,368 |
Share Based payment reserve
Share Based payment reserve | 9 Months Ended |
Sep. 30, 2019 | |
Share based payment reserve | |
Share based payment reserve | 11. The share-based payment reserve records items are recognized as stock-based compensation expense and other share-based payments until such time that the stock options are exercised, at which time the corresponding amount will be transferred to share capital. If the options expire unexercised, the amount remains in the share-based payment reserve account. |
General and administrative expe
General and administrative expenses | 9 Months Ended |
Sep. 30, 2019 | |
General and administrative expenses | |
General and administrative expenses | 12. Three months ended Nine months ended September 30, 2019 September 30, 2018 September 30, 2019 September 30, 2018 Rent $ 87,777 $ 110,779 $ 283,261 $ 283,820 Office expenses 407,095 113,602 1,181,434 340,776 Legal and professional 522,183 490,622 1,343,885 999,785 Consulting fees 535,303 362,585 1,373,906 736,680 Investor relations 53,112 254,248 261,814 416,631 Salaries 718,388 354,689 1,383,896 818,306 $ 2,323,858 $ 1,686,525 $ 5,828,196 $ 3,595,998 |
Research and development expens
Research and development expenses | 9 Months Ended |
Sep. 30, 2019 | |
Research and development expenses | |
Research and development expenses | 13. Three months ended Nine months ended September 30, 2019 September 30, 2018 September 30, 2019 September 30, 2018 Labour $ 1,265,310 $ 873,905 $ 3,606,535 $ 2,401,339 Materials 2,003,246 757,505 3,602,274 2,517,477 Government grants (1,800) (725,599) (382,993) (734,229) $ 3,266,756 $ 905,811 $ 6,825,816 $ 4,184,587 |
Sales and marketing expenses
Sales and marketing expenses | 9 Months Ended |
Sep. 30, 2019 | |
Sales and marketing expenses | |
Sales and marketing expenses | 14. Three months ended Nine months ended September 30, 2019 September 30, 2018 September 30, 2019 September 30, 2018 Consulting $ 40,921 $ 84,489 $ 264,750 $ 204,004 Marketing 153,111 142,372 441,254 356,226 Salaries 258,776 129,945 559,342 272,820 $ 452,808 $ 356,806 $ 1,265,346 $ 833,050 |
Segmented information
Segmented information | 9 Months Ended |
Sep. 30, 2019 | |
Segmented information | |
Segmented information | 15. The Company operates in two reportable business segments in Canada. The two reportable business segments offer different products, require different production processes, and are based on how the financial information is produced internally for the purposes of making operating decisions. The following summary describes the operations of each of the Company’s reportable business segments: · Electric Vehicles – development and manufacture of electric vehicles for mass markets, and · Custom build vehicles – development and manufacture of high-end custom-built vehicles. Sales between segments are accounted for at prices that approximate fair value. No business segments have been aggregated to form the above reportable business segments. Three Months Ended September 30, 2019 Three Months Ended September 30, 2018 Custom Built Custom Built Electric Vehicles Vehicles Electric Vehicles Vehicles Revenue $ — $ 200,068 $ — $ 189,902 Gross profit — 65,598 — 49,807 Operating expenses 7,742,592 128,115 3,863,883 111,364 Other items (2,475,303) 10,709 (1,038,235) 3,115 Deferred income tax recovery — (6,894) — — Net loss 5,287,289 66,332 2,825,648 64,672 FX translation 14,257 Comprehensive loss 5,281,546 66,332 2,825,648 64,672 Nine months ended September 30, 2019 Nine months ended September 30, 2018 Custom Built Custom Built Electric Vehicles Vehicles Electric Vehicles Vehicles Revenue $ — $ 461,334 $ — $ 635,401 Gross profit — 64,060 — 199,987 Operating expenses 18,753,216 32,037,600 11,992,137 283,310 Other items 3,713,023 13,498 (4,183,985) 19,034 Current income tax 2,140 — — — Deferred income tax recovery — (56,069) — — Net loss 22,468,379 213,745 7,808,152 102,357 FX translation (10,330) — — — Comprehensive loss 22,458,049 213,745 7,808,152 102,357 September 30, 2019 December 31, 2018 Custom Built Custom Built Electric Vehicles Vehicles Electric Vehicles Vehicles Inventory $ 638,458 $ 226,358 $ 189,182 $ 231,555 Plant and equipment 9,751,991 420,996 5,299,857 23,909 |
Related party transactions
Related party transactions | 9 Months Ended |
Sep. 30, 2019 | |
Related party transactions | |
Related party transactions | 16. Related party balances The following amounts are due to related parties: September 30, December 31, 2019 2018 Shareholder loan $ 3,115 $ 6,230 Due to related parties (Note 7) 367,413 83,331 $ 370,528 $ 89,561 These amounts are unsecured, non-interest bearing and have no fixed terms of repayment. Key management personnel compensation Three months ended Nine months ended September 30, 2019 September 30, 2018 September 30, September 30, 2019 2018 2019 2018 Consulting fees $ 137,569 $ 90,166 $ 382,701 $ 222,166 Salaries 217,017 139,440 515,684 284,000 Director fees 135,723 52,178 296,201 97,779 Stock-based compensation 1,372,613 367,611 3,328,759 1,322,406 $ 1,862,922 $ 649,395 $ 4,523,345 $ 1,926,351 |
Financial instruments and finan
Financial instruments and financial risk management | 9 Months Ended |
Sep. 30, 2019 | |
Financial instruments and financial risk management | |
Financial instruments and financial risk management | 17. The Company is exposed in varying degrees to a variety of financial instrument related risks. The Board of Directors approves and monitors the risk management processes, inclusive of controlling and reporting structures. The type of risk exposure and the way in which such exposure is managed is provided as follows: Credit risk Credit risk is the risk that one party to a financial instrument will fail to discharge an obligation and cause the other party to incur a financial loss. The Company’s primary exposure to credit risk is on its cash and cash equivalents held in bank accounts. The majority of cash is deposited in bank accounts held with major financial institutions in Canada. As most of the Company’s cash is held by one financial institution there is a concentration of credit risk. This risk is managed by using major financial institutions that are high credit quality financial institutions as determined by rating agencies. The Company’s secondary exposure to risk is on its receivables. This risk is minimal as receivables consist primarily of interest receivable from the high credit quality financial institutions determined by rating agencies and refundable government goods and services taxes. Liquidity risk Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they fall 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 ensures that there are sufficient funds to meet its short-term business requirements, taking into account its anticipated cash flows from operations and its holdings of cash and cash equivalents. Historically, the Company’s source of funding has been shareholder loans and the issuance of equity securities for cash through private placements and public offerings. The Company’s access to financing is always uncertain. There can be no assurance of continued access to significant equity funding. The following is an analysis of the contractual maturities of the Company’s non-derivative financial liabilities as at September 30, 2019: Between one More than At September 30, 2019 Within one year and five years five years Trade payables $ 836,287 — — Accrued liabilities 349,691 — — Customer deposits and contract liabilities 500,039 — — Shareholder loan 3,115 — — $ 1,689,132 $ — $ — Between one More than At December 31, 2018 Within one year and five years five years Trade payables $ 718,953 — — Accrued liabilities 543,908 — — Customer deposits and contract liabilities 402,783 — — Shareholder loan 6,230 — — $ 1,671,874 $ — $ — See Note 8 for information on impairment schedule for lease liabilities Foreign exchange risk Foreign currency risk is the risk that the fair values of future cash flows of a financial instrument will fluctuate because they are denominated in currencies that differ from the respective functional currency. The Company is exposed to currency risk as it incurs expenditures that are denominated in US dollars while its functional currency is the Canadian dollar. The Company does not hedge its exposure to fluctuations in foreign exchange rates. The following is an analysis of Canadian dollar equivalent of financial assets and liabilities that are denominated in US dollars: September 30, December 31, 2019 2018 Cash and cash equivalents $ 15,811,171 $ 18,102,872 Trade receivables 102,358 51,164 Trade payables (122,274) (382,087) Customer deposits (63,540) — Lease liabilities (837,580) — $ 14,890,135 $ 17,771,949 Based on the above net exposures, as at September 30 , 2019, a 10% change in the US dollars to Canadian dollar exchange rate would impact the Company’s net loss by $1,489,014. Interest rate risk Interest rate risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Company is exposed to interest rate risk on its cash equivalents as these instruments have original maturities of twelve months or less and are therefore exposed to interest rate fluctuations on renewal. A 1% change in market interest rates would have an impact on the Company’s net loss of $139,130 for the nine months ended September 30, 2019. Classification of financial instruments Financial assets included in the statement of financial position are as follows: September 30, December 31, 2019 2018 Amortized cost: Cash and cash equivalents $ 16,225,503 $ 18,926,933 Receivables 387,131 1,190,689 $ 16,612,634 $ 20,117,622 Financial liabilities included in the statement of financial position are as follows: September 30, December 31, 2019 2018 Non-derivative financial liabilities: Trade payable and accrued liabilities $ 1,185,978 $ 1,262,861 Customer deposits and contract liability 500,039 402,783 Shareholder loan 3,115 6,230 Derivative financial liabilities: Derivative liability 7,558,659 4,752,875 $ 9,247,791 $ 6,424,749 Fair value The fair value of the Company’s financial assets and liabilities approximates the carrying amount. Financial instruments measured at fair value are classified into one of three levels in the fair value hierarchy according to the relative reliability of the inputs used to estimate the fair values. The three levels of the fair value hierarchy are: · Level 1 – Unadjusted quoted prices in active markets for identical assets or liabilities; · Level 2 – Inputs other than quoted prices that are observable for the asset or liability either directly or indirectly; and · Level 3 – Inputs that are not based on observable market data. Financial liabilities measured at fair value at December 31, 2018 consisted of the derivative liability, which is measured using level 1 inputs. The fair value of the derivative liability relating to the transferrable warrants was calculated using the quoted market price on the NASDAQ. The fair value of the derivative liability relating to the non-transferrable warrants was calculated using the Black-Scholes Option Pricing Model using historical volatility as an estimate of future volatility. At September 30, 2019, if the volatility used was increased by 10% the impact would be an increase to the derivate liability of $544,540 with a corresponding increase in the comprehensive loss. |
Capital management
Capital management | 9 Months Ended |
Sep. 30, 2019 | |
Capital management | |
Capital management | 18. The Company’s policy is to maintain a strong capital base so as to safeguard the Company’s ability to maintain its business and sustain future development of the business. The capital structure of the Company consists of equity. There were no changes in the Company’s approach to capital management during the year. The Company is not subject to any externally imposed capital requirements. |
Subsequent event
Subsequent event | 9 Months Ended |
Sep. 30, 2019 | |
Subsequent event | |
Subsequent event | 19. On October 15, 2019, the Company set up EMV Automotive Technology (Chongqing) Inc. (the Subsidiary), a wholly foreign owned entity formulated in accordance with the Company Law of the People’s Republic of China. The Company is the sole shareholder of the Subsidiary, the total investment is US$ 600,000, and the Company commitment is to contribute US$ 500,000 by December 31, 2021 as registered capital of the Subsidiary. On October 15, 2019, we received US$16,656 from investors for the exercise of stock options for $0.30, and issued 56,250 common shares of the Company. On October 15, 2019, we received $15,400 from an employee for the exercise of stock options for $0.80 to $2.00, and issued 14,567 common shares of the Company. |
Significant accounting polici_2
Significant accounting policies and basis of preparation (Policies) | 9 Months Ended |
Sep. 30, 2019 | |
Significant accounting policies and basis of preparation | |
Statement of compliance with International Financial Reporting Standards | Statement of compliance with International Financial Reporting Standards These interim condensed consolidated financial statements have been prepared in accordance with International Financial Reporting Standards (“IFRS”), as issued by the International Accounting Standards Board (“IASB”). Therefore, these financial statements comply with International Accounting Standards (“IAS”) 34, Interim Financial Reporting. These interim condensed consolidated financial statements were prepared using the same accounting policies and methods as those used in the Company’s consolidated financial statements for the year ended December 31, 2018, with the exception of new accounting policies that were adopted on January 1, 2019 as described in Note 2. Accordingly, certain disclosures normally included in annual financial statements prepared in accordance with IFRS, as issued by the IASB, have been omitted or condensed. These interim condensed consolidated financial statements should be read in conjunction with the Company’s consolidated financial statements for the year ended December 31, 2018. |
Basis of preparation | Basis of preparation The financial statements of the Company have been prepared on an accrual basis and are based on historical costs, modified where applicable. The Company’s functional and presentation currency is Canadian dollars. |
Consolidation | Consolidation The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries, EMV Automotive USA Inc. and InterMeccanica from the date of its acquisition on October 18, 2017. Inter-company balances and transactions, including unrealized income and expenses arising from inter-company transactions, are eliminated on consolidation. |
Significant estimates and assumptions | Significant estimates and assumptions The preparation of financial statements in accordance with IFRS requires the Company to make estimates and assumptions concerning the future. The Company’s management reviews these estimates and underlying assumptions on an ongoing basis, based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. Revisions to estimates are adjusted for prospectively in the period in which the estimates are revised. Estimates and assumptions where there is significant risk of material adjustments to assets and liabilities in future accounting periods include the fair value of the identifiable assets and liabilities acquired from InterMeccanica, the estimated recoverable amount of goodwill, intangible assets and other long-lived assets, the useful lives of plant and equipment, the estimated amount of scientific research and experimental development (SR&ED) tax credits, fair value measurements for financial instruments and share-based payments, and the recoverability and measurement of deferred tax assets. |
Significant judgments | Significant judgments The preparation of financial statements in accordance with IFRS requires the Company to make judgments, apart from those involving estimates, in applying accounting policies. The most significant judgments in applying the Company’s financial statements include: - - - |
Financial Instruments | Financial Instruments The Company classifies its financial instruments in the following categories: at fair value through profit or loss (“FVTPL”), at fair value through other comprehensive income (loss) (“FVTOCI”) or at amortized cost. The Company determines the classification of financial assets at initial recognition. The classification of debt instruments is driven by the Company’s business model for managing the financial assets and their contractual cash flow characteristics. Equity instruments that are held for trading are classified as FVTPL. For other equity instruments, on the day of acquisition the Company can make an irrevocable election (on an instrument-by-instrument basis) to designate them as at FVTOCI. Financial liabilities are measured at amortized cost, unless they are required to be measured at FVTPL (such as instruments held for trading or derivatives) or if the Company has opted to measure them at FVTPL. The following table shows the classification of the Company’s financial assets and liabilities Financial assets/liabilities Cash and cash equivalents Amortized cost Receivables Amortized cost Trade payables and accrued liabilities Amortized cost Shareholder loan Amortized cost Lease liabilities Amortized cost Derivative liability FVTPL Financial assets and liabilities at amortized cost are initially recognized at fair value plus or minus transaction costs, respectively, and subsequently carried at amortized cost less any impairment. Financial assets and liabilities carried at FVTPL are initially recorded at fair value and transaction costs are expensed in the consolidated statements of comprehensive loss. Realized and unrealized gains and losses arising from changes in the fair value of the financial assets and liabilities held at FVTPL are included in the consolidated statements of comprehensive loss in the period in which they arise. The Company recognizes a loss allowance for expected credit losses on financial assets that are measured at amortized cost. At each reporting date, the Company measures the loss allowance for the financial asset at an amount equal to the lifetime expected credit losses if the financial risk on the financial asset has increased significantly since initial recognition. If at the reporting date, the financial asset has not increased significantly since initial recognition, the Company measures the loss allowance for the financial asset at an amount equal to the twelve month expected credit losses. The Company shall recognize in the consolidated statements of comprehensive income (loss), as an impairment gain or loss, the amount of expected credit losses (or reversal) that is required to adjust the loss allowance at the reporting date to the amount that is required to be recognized. The Company derecognizes financial assets only when the contractual rights to cash flows from the financial assets expire, or when it transfers the financial assets and substantially all of the associated risks and rewards of ownership to another entity. Gains and losses on derecognition are generally recognized in the consolidated statements of comprehensive loss. |
Revenue from contracts with customers | Revenue from contracts with customers Revenue is recognized to the extent that the amount of revenue can be measured reliably and collection is probable . Part sales: Sales of parts are recognized when the Company has transferred control to the customer which generally occurs upon shipment. Services, repairs and support services: Services, repairs and support services are recognized in the accounting period when the services are rendered. Sales of custom build vehicles: The Company manufactures and sells custom built vehicles typically on fixed fee arrangements with its customers. Revenue is recognized in the accounting period in which the services are rendered, by reference to the stage of completion. The stage of completion is determined as a percentage based on the amount of costs incurred compared to the estimated cost of completion. Revenue recognized in excess of amounts billed is recorded as accounts receivable. Amounts received in excess of work performed is recorded as deferred revenue. Sales of electric vehicles: The Company will be manufacturing and selling an electric powered one-seater vehicle which has not yet been commercialized. At this time, proceeds of these sales are considered to be incidental revenue and are not being made with the expectation of profit. These are sold to ‘beta’ customers who provide real-world testing and feedback on the vehicles. The revenue generated from sales are recorded against research & development expenses. |
Cash and cash equivalents | Cash and cash equivalents Cash and cash equivalents include cash and short-term investments with original maturities of 90 days or less and are presented at cost, which approximates market value. |
Customer deposits | Customer deposits Customer deposits consist primarily of advance payments and billings in excess of costs incurred. Changes in customer deposits are primarily due to the timing difference between the Company’s performance of services and payments from customers. To determine revenue recognized from customer deposits during the reporting periods, the Company allocates revenue to individual customer deposit balances and applies revenue recognized during the reporting periods to the beginning balances of customer deposits until the revenue exceeds the balances. |
Inventory | Inventory Inventory consists of parts held for resale or for use in fixed fee contracts and is valued at the lower of cost and net realizable value. Cost is determined on the first-in, first-out basis. |
Trademarks and patents | Trademarks and patents The Company expenses legal fees and filing costs associated with the development of its trademarks and patents. |
Plant and equipment | Plant and equipment Plant and equipment are stated at historical cost less accumulated depreciation and accumulated impairment losses. Subsequent costs are included in the asset’s carrying amount or recognized as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the Company and the cost of the item can be measured reliably. The carrying amount of the replaced asset is derecognized. All other repairs and maintenance are charged to the statement of comprehensive loss during the financial period in which they are incurred. Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognized in the statements of comprehensive loss. Amortization is calculated on a straight-line method to write off the cost of the assets to their residual values over their estimated useful lives. The amortization rates applicable to each category of plant and equipment are as follows: Class of plant and equipment Amortization rate Furniture and equipment 20% Computer equipment 33% Computer software 50% Vehicles 33% Leasehold improvements over term of lease Right of use assets over term of lease Production tooling and molds per unit produced |
Share-based payments | Share-based payments Share-based payments to employees are measured at the fair value of the instruments issued and amortized over the vesting periods. Share-based payments to non-employees are measured at the fair value of goods or services received or the fair value of the equity instruments issued, if it is determined the fair value of the goods or services cannot be reliably measured, and are recorded at the date the goods or services are received. The corresponding amounts are recorded to the share-based payment reserve. The fair value of options is determined using a Black–Scholes pricing model. The number of options expected to vest is reviewed and adjusted at the end of each reporting period such that the amount recognized for services received as consideration for the equity instruments granted shall be based on the number of equity instruments that eventually vest. |
Loss per share | Loss per share Basic loss per share is calculated by dividing the loss attributable to common shareholders by the weighted average number of common shares outstanding in the period. For all periods presented, the loss attributable to common shareholders equals the reported loss attributable to owners of the Company. Fully diluted loss per share is calculated by the treasury stock method. Under the treasury stock method, the weighted average number of common shares outstanding for the calculation of fully diluted loss per share assumes that the proceeds to be received on the exercise of dilutive share options and warrants are used to repurchase common shares at the average market price during the period. |
Research and development expenses | Research and development expenses Research costs are expensed when incurred and are stated net of government grants. Development costs including direct material, direct labour and contract service costs are capitalized as intangible assets when the Company can demonstrate that the technical feasibility of the project has been established; the Company intends to complete the asset for use or sale and has the ability to do so; the asset can generate probable future economic benefits; the technical and financial resources are available to complete the development; and the Company can reliably measure the expenditure attributable to the intangible asset during its development. After initial recognition, internally generated intangible assets are recorded at cost less accumulated amortization and accumulated impairment losses. These costs are amortized on a straight-line basis over the estimated useful life. To date, the Company did not have any development costs that met the capitalization criteria. |
Derivative Liability | Derivative liability The Company accounts for its warrants as either equity or liabilities based upon the characteristics and provisions of each instrument. Warrants classified as equity are recorded at fair value as of the date of issuance on the Company’s consolidated balance sheets and no further adjustments to their valuation are made. Warrants classified as derivative liabilities that require separate accounting as liabilities are recorded on the Company’s consolidated balance sheets at their fair value on the date of issuance and will be revalued on each subsequent balance sheet date until such instruments are exercised or expire, with any changes in the fair value between reporting periods recorded as other income or expense. Management estimates the fair value of these liabilities using option pricing models and assumptions that are based on the individual characteristics of the warrants or instruments on the valuation date, as well as assumptions for future financings, expected volatility, expected life, yield, and risk-free interest rate. |
Change in accounting policy - Leases | Change in accounting policy - Leases In January 2016, the IASB issued IFRS 16 Leases (“IFRS 16”), which replaced IAS 17 Leases (“IAS 17”) and related interpretations. IFRS 16 introduces a single lessee accounting model eliminating the previous distinction between finance and operating leases. IFRS 16 requires the recognition of lease-related assets and liabilities on the balance sheet, except for short-term leases and leases of low value underlying assets. Lessor accounting remained substantially unchanged. The Company adopted IFRS 16 on January 1, 2019. The comparative information has not been restated and continues to be reported under IAS 17 and IFRIC 4 Determining whether an Arrangement contains a Lease. In calculating the lease liability at this date, the Company has chosen to apply a practical expedient in IFRS 16 that allows for lease and non-lease components of a contract to be combined as a single lease component. This expedient has been applied to all contracts which have been identified to contain a lease per IFRS 16. The adoption of IFRS 16 resulted in an increase of $2.1 million in total assets and total liabilities each for recognition of right-of-use assets and lease liabilities, respectively, and had no impact to opening retained earnings as at January 1, 2019. When measuring lease liabilities, the Company discounted lease payments using its incremental borrowing rate at Jan 1, 2019 of 5%-10%. Operating lease commitment at December 31, 2018 as disclosed in the Company’s consolidated financial statement $ 2,148,834 Discounting effect using the incremental borrowing rate at January 1, 2019 178,677 1,970,157 Extension options reasonably certain to be exercised 136,809 Lease liabilities recognized at January 1, 2019 $ 2,106,966 |
Impairment of assets | Impairment of assets The carrying amount of the Company’s long-lived assets with finite useful lives (which include plant and equipment and intangible assets) is reviewed at each reporting date to determine whether there is any indication of impairment. If such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss. An impairment loss is recognized whenever the carrying amount of an asset or its cash generating unit exceeds its recoverable amount. Impairment losses are recognized in the statement of comprehensive loss. The recoverable amount of assets is the greater of an asset’s fair value less cost to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects the current market assessments of the time value of money and the risks specific to the asset. For an asset that does not generate cash inflows largely independent of those from other assets, the recoverable amount is determined for the cash-generating unit to which the asset belongs. An impairment loss is only reversed if there is an indication that the impairment loss may no longer exist and there has been a change in the estimates used to determine the recoverable amount. Any reversal of impairment cannot increase the carrying value of the asset to an amount higher than the carrying amount that would have been determined had no impairment loss been recognized in previous years. Goodwill and other intangible assets that have an indefinite useful life are not subject to amortization and are tested annually for impairment, or more frequently if indicators of impairment exist. |
Income taxes | Income taxes Current income tax: Current income tax assets and liabilities for the current period are measured at the amount expected to be recovered from or paid to the taxation authorities. The tax rates and tax laws used to compute the amount are those that are enacted or substantively enacted, at the reporting date, in the countries where the Company operates and generates taxable income. Current income tax relating to items recognized directly in other comprehensive income or equity is recognized in other comprehensive income or equity and not in profit or loss. Management periodically evaluates positions taken in the tax returns with respect to situations in which applicable tax regulations are subject to interpretation and establishes provisions where appropriate. Tax Credits: The Company earns SR&ED tax credits with respect to its research and development expenses. The benefit of these SR&ED tax credits is recorded as a reduction of research and development expenses when their recoverability is reasonably expected. The SR&ED tax credits earned while the Company was Canadian Controlled Private Corporation are refundable to the Company and are recorded as a receivable, while the tax credits earned now that the Company is a public company (as defined under Canadian tax laws) can be used to reduce future Canadian income taxes payable. Deferred income tax: Deferred income tax is recognized, using the asset and liability method, on temporary differences at the reporting date arising between the tax bases of assets and liabilities and their carrying amounts for financial reporting purposes. The carrying amount of deferred income tax assets is reviewed at the end of each reporting period and recognized only to the extent that it is probable that sufficient taxable profit will be available to allow all or part of the deferred income tax asset to be utilized. Deferred income tax assets and liabilities are measured at the tax rates that are expected to apply to the year when the asset is realized or the liability is settled, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period. Deferred income tax assets and deferred income tax liabilities are offset if a deferred income taxes relate to the same taxable entity and the same taxation authority. |
Significant accounting polici_3
Significant accounting policies and basis of preparation (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Significant accounting policies and basis of preparation | |
Schedule of property, plant and equipment | Class of plant and equipment Amortization rate Furniture and equipment 20% Computer equipment 33% Computer software 50% Vehicles 33% Leasehold improvements over term of lease Right of use assets over term of lease Production tooling and molds per unit produced |
Schedule of operating and finance lease liabilities | Operating lease commitment at December 31, 2018 as disclosed in the Company’s consolidated financial statement $ 2,148,834 Discounting effect using the incremental borrowing rate at January 1, 2019 178,677 1,970,157 Extension options reasonably certain to be exercised 136,809 Lease liabilities recognized at January 1, 2019 $ 2,106,966 |
Cash and cash equivalents (Tabl
Cash and cash equivalents (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Cash and cash equivalents. | |
Schedule of cash and cash equivalents | September 30, December 31, 2019 2018 Cash $ 2,312,488 $ 2,443,938 Cash equivalent 13,913,015 16,482,995 $ 16,225,503 $ 18,926,933 |
Receivables (Tables)
Receivables (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Receivables | |
Schedule of receivables | September 30, December 31, 2019 2018 Trade receivable $ 78,913 $ 84,443 Construction contract asset 88,691 125,426 GST receivable 62,475 278,182 SR&ED tax credits receivable — 675,000 Other receivable 157,052 27,638 $ 387,131 $ 1,190,689 |
Plant and equipment (Tables)
Plant and equipment (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Plant and equipment | |
Schedule of plant and equipment | Computer Furniture hardware Production and and Leasehold Right-of- tooling and equipment software Vehicles Improvements use assets molds Total Cost: At December 31, 2017 290,843 73,654 390,050 101,200 — 914,060 1,769,807 Additions 203,644 59,749 — 283,141 — 3,635,888 4,182,422 Disposals — — (2,001) — — — (2,001) December 31, 2018 494,487 133,403 388,049 384,341 — 4,549,948 5,950,228 Additions 75,982 93,128 — 116,665 2,085,844 3,271,043 5,640,512 Disposals — (2,150) — — — — (2,150) September 30, 2019 570,469 224,381 388,049 501,006 2,085,844 7,820,991 11,590,740 Amortization: At December 31, 2017 188,606 27,147 85,764 74,607 — — 376,124 Charge for the year 42,192 38,542 129,487 40,117 — — 250,338 At December 31, 2018 230,798 65,689 215,251 114,724 — — 626,462 Additions 58,041 45,064 95,582 88,406 505,452 — 792,545 Disposals — (1,254) — — — — (1,254) September 30, 2019 288,839 109,499 310,833 203,130 505,452 — 1,417,753 Net book value: At December 31, 2018 $ 263,689 $ 67,714 $ 172,798 $ 269,617 $ — $ 4,549,948 $ 5,323,766 At September 30, 2019 $ 281,630 $ 114,882 $ 77,216 $ 297,876 $ 1,580,392 $ 7,820,991 $ 10,172,987 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Goodwill and Intangible Assets | |
Schedule of goodwill and other intangible assets | September 30, December 31, 2019 2018 Identifiable intangibles $ 525,317 $ 529,067 Goodwill 699,844 699,844 Other intangibles 15,220 10,212 $ 1,240,381 $ 1,239,123 |
Trade payables and accrued li_2
Trade payables and accrued liabilities (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Trade payables and accrued liabilities | |
Schedule of trade payables and accrued liabilities | September 30, December 31, 2019 2018 Trade payables $ 468,874 $ 635,622 Wages payables 92,890 80,573 Due to related parties (Note 16) 367,413 83,331 Accrued liabilities 256,801 463,335 $ 1,185,978 $ 1,262,861 |
Lease liabilities (Tables)
Lease liabilities (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Lease liabilities. | |
Disclosure of detailed information about maturity contractual undiscounted cash flows related to leases | Present value of Future minimum minimum lease lease payments Interest payments Less than one year $ 746,394 $ 112,511 $ 633,883 Between one and five years 976,313 158,926 817,387 More than five years 196,044 12,579 183,465 $ 1,918,751 $ 284,016 1,634,735 Current portion of lease liabilities 633,883 Non-current portion of lease liabilities $ 1,000,852 |
Derivative liability (Tables)
Derivative liability (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Derivative liability | |
Schedule of changes in fair values of the derivative liability | September 30, December 31, 2019 2018 Balance, beginning $ 4,752,875 $ 3,655,690 Warrants issued — 8,935,289 Warrants exercised (607,133) (131,053) Changes in fair value of derivative liabilities 3,412,917 (7,707,051) Balance, ending $ 7,558,659 $ 4,752,875 |
Share capital (Tables)
Share capital (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Share capital | |
Schedule of changes in options | September 30, 2019 Number of options Weighted average exercise price Options outstanding, beginning 4,756,174 $ 2.73 Options granted 3,360,000 3.76 Options exercised (43,760) 0.80 Options forfeited (121,373) 8.30 Options cancelled (275,000) 11.75 Options outstanding, ending 7,676,041 $ 2.19 |
Schedule of details of options outstanding | Weighted average Number of options Number of options Exercise price contractual life outstanding exercisable $ 0.30 2.70 years 2,045,455 2,045,455 $ 0.30 2.87 years 308,522 308,522 $ 0.80 3.19 years 632,458 614,710 $ 0.80 3.44 years 12,500 11,197 $ 2.00 3.73 years 12,500 10,416 $ 2.00 4.39 years 350,622 320,562 $ 2.00 4.86 years 50,000 27,087 $ 9.60 USD 5.27 years 199,060 100,570 $ 6.18 USD 5.86 years 175,000 51,042 $ 1.53 USD 4.14 years 120,000 90,000 $ 5.00 USD 4.17 years 409,924 409,924 $ 3.40 USD 6.47 years 1,228,182 868,182 $ 2.62 USD 2.74 years 700,000 — $ 2.45 USD 6.85 years 1,250,000 208,334 $ 2.53 USD 6.86 years 181,818 21,968 4.46 years 7,676,041 5,087,969 |
Schedule of stock options Black-Scholes option pricing model | Nine months ended September 30, 2019 Expected life of options 3 - 5 years Annualized volatility 62.29 % Risk-free interest rate 1.25%-1.58 % Dividend rate 0 % |
Schedule of changes in warrants | September 30, 2019 December 31, 2018 Number of Weighted average Number of Weighted average warrants exercise price warrants exercise price Warrants outstanding, beginning 22,369,718 $ 5.03 11,856,857 $ 4.70 Warrants issued — — 10,807,093 5.36 Warrants exercised (1,116,323) 3.82 (294,232) 5.08 Warrants outstanding, ending 21,253,395 $ 4.41 22,369,718 $ 5.03 |
Schedule of details in warrants outstanding | Weighted average Number of warrants Exercise Price contractual life outstanding Non-Transferable Warrants $0.80 CAD - $16.00 CAD 2.06 years 11,010,058 $2.00 USD - $24.00 USD 3.92 years 5,741,969 Transferable Warrants $4.25 USD 3.86 years 4,501,368 |
General and administrative ex_2
General and administrative expenses (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
General and administrative expenses | |
Schedule of general and administrative expenses | Three months ended Nine months ended September 30, 2019 September 30, 2018 September 30, 2019 September 30, 2018 Rent $ 87,777 $ 110,779 $ 283,261 $ 283,820 Office expenses 407,095 113,602 1,181,434 340,776 Legal and professional 522,183 490,622 1,343,885 999,785 Consulting fees 535,303 362,585 1,373,906 736,680 Investor relations 53,112 254,248 261,814 416,631 Salaries 718,388 354,689 1,383,896 818,306 $ 2,323,858 $ 1,686,525 $ 5,828,196 $ 3,595,998 |
Research and development expe_2
Research and development expenses (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Research and development expenses | |
Schedule of research and development expense | Three months ended Nine months ended September 30, 2019 September 30, 2018 September 30, 2019 September 30, 2018 Labour $ 1,265,310 $ 873,905 $ 3,606,535 $ 2,401,339 Materials 2,003,246 757,505 3,602,274 2,517,477 Government grants (1,800) (725,599) (382,993) (734,229) $ 3,266,756 $ 905,811 $ 6,825,816 $ 4,184,587 |
Sales and marketing expenses (T
Sales and marketing expenses (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Sales and marketing expenses | |
Schedule of sales and marketing expenses | Three months ended Nine months ended September 30, 2019 September 30, 2018 September 30, 2019 September 30, 2018 Consulting $ 40,921 $ 84,489 $ 264,750 $ 204,004 Marketing 153,111 142,372 441,254 356,226 Salaries 258,776 129,945 559,342 272,820 $ 452,808 $ 356,806 $ 1,265,346 $ 833,050 |
Segmented information (Tables)
Segmented information (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Segmented information | |
Schedule of segmented information | Three Months Ended September 30, 2019 Three Months Ended September 30, 2018 Custom Built Custom Built Electric Vehicles Vehicles Electric Vehicles Vehicles Revenue $ — $ 200,068 $ — $ 189,902 Gross profit — 65,598 — 49,807 Operating expenses 7,742,592 128,115 3,863,883 111,364 Other items (2,475,303) 10,709 (1,038,235) 3,115 Deferred income tax recovery — (6,894) — — Net loss 5,287,289 66,332 2,825,648 64,672 FX translation 14,257 Comprehensive loss 5,281,546 66,332 2,825,648 64,672 Nine months ended September 30, 2019 Nine months ended September 30, 2018 Custom Built Custom Built Electric Vehicles Vehicles Electric Vehicles Vehicles Revenue $ — $ 461,334 $ — $ 635,401 Gross profit — 64,060 — 199,987 Operating expenses 18,753,216 32,037,600 11,992,137 283,310 Other items 3,713,023 13,498 (4,183,985) 19,034 Current income tax 2,140 — — — Deferred income tax recovery — (56,069) — — Net loss 22,468,379 213,745 7,808,152 102,357 FX translation (10,330) — — — Comprehensive loss 22,458,049 213,745 7,808,152 102,357 September 30, 2019 December 31, 2018 Custom Built Custom Built Electric Vehicles Vehicles Electric Vehicles Vehicles Inventory $ 638,458 $ 226,358 $ 189,182 $ 231,555 Plant and equipment 9,751,991 420,996 5,299,857 23,909 |
Related party transactions (Tab
Related party transactions (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Related party transactions | |
Schedule of related party balances | September 30, December 31, 2019 2018 Shareholder loan $ 3,115 $ 6,230 Due to related parties (Note 7) 367,413 83,331 $ 370,528 $ 89,561 |
Schedule of key management personnel compensation | Three months ended Nine months ended September 30, 2019 September 30, 2018 September 30, September 30, 2019 2018 2019 2018 Consulting fees $ 137,569 $ 90,166 $ 382,701 $ 222,166 Salaries 217,017 139,440 515,684 284,000 Director fees 135,723 52,178 296,201 97,779 Stock-based compensation 1,372,613 367,611 3,328,759 1,322,406 $ 1,862,922 $ 649,395 $ 4,523,345 $ 1,926,351 |
Financial instruments and fin_2
Financial instruments and financial risk management (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Financial instruments and financial risk management | |
Schedule of contractual maturities of non-derivative financial liabilities | Between one More than At September 30, 2019 Within one year and five years five years Trade payables $ 836,287 — — Accrued liabilities 349,691 — — Customer deposits and contract liabilities 500,039 — — Shareholder loan 3,115 — — $ 1,689,132 $ — $ — Between one More than At December 31, 2018 Within one year and five years five years Trade payables $ 718,953 — — Accrued liabilities 543,908 — — Customer deposits and contract liabilities 402,783 — — Shareholder loan 6,230 — — $ 1,671,874 $ — $ — |
Schedule of financial assets and liabilities that are denominated in US dollars | September 30, December 31, 2019 2018 Cash and cash equivalents $ 15,811,171 $ 18,102,872 Trade receivables 102,358 51,164 Trade payables (122,274) (382,087) Customer deposits (63,540) — Lease liabilities (837,580) — $ 14,890,135 $ 17,771,949 |
Schedule of classification of financial instruments | September 30, December 31, 2019 2018 Amortized cost: Cash and cash equivalents $ 16,225,503 $ 18,926,933 Receivables 387,131 1,190,689 $ 16,612,634 $ 20,117,622 September 30, December 31, 2019 2018 Non-derivative financial liabilities: Trade payable and accrued liabilities $ 1,185,978 $ 1,262,861 Customer deposits and contract liability 500,039 402,783 Shareholder loan 3,115 6,230 Derivative financial liabilities: Derivative liability 7,558,659 4,752,875 $ 9,247,791 $ 6,424,749 |
Significant Accounting Polici_4
Significant Accounting Policies and Basis of Preparation (Details) | 9 Months Ended |
Sep. 30, 2019 | |
Furniture and equipment [Member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Class of plant and equipment, Amortization rate | 20.00% |
Computer hardware and software | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Class of plant and equipment, Amortization rate | 33.00% |
Computer software | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Class of plant and equipment, Amortization rate | 50.00% |
Vehicles | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Class of plant and equipment, Amortization rate | 33.00% |
Significant Accounting Polici_5
Significant Accounting Policies and Basis of Preparation - Change in accounting policy - Leases (Details) - CAD ($) | Sep. 30, 2019 | Jan. 01, 2019 |
Significant accounting policies and basis of preparation | ||
Operating lease commitment at December 31, 2018 as disclosed in the Company's consolidated financial statement | $ 2,148,834 | |
Discounted using the incremental borrowing rate at January 1, 2019 | 178,677 | |
Lease commitment after discounting effect | 1,970,157 | |
Extension options reasonably certain to be exercised | 136,809 | |
Lease liabilities recognized at January 1, 2019 | $ 1,634,735 | $ 2,106,966 |
Significant Accounting Polici_6
Significant Accounting Policies and Basis of Preparation - Additional Information (Details) - CAD ($) $ in Millions | Jan. 01, 2019 | Sep. 30, 2019 |
Significant accounting policies and basis of preparation | ||
Increase in total assets due to recognition of right-of-use assets | $ 2.1 | |
Increase in total liabilities due to recognition of lease liabilities | $ 2.1 | |
Incremental borrowing rate on discounted lease payments | 5%-10% |
Cash and cash equivalents (Deta
Cash and cash equivalents (Details) - CAD ($) | Sep. 30, 2019 | Jun. 30, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Dec. 31, 2017 |
Cash and cash equivalents. | ||||||
Cash | $ 2,312,488 | $ 2,443,938 | ||||
Cash equivalent | 13,913,015 | 16,482,995 | ||||
Cash and cash equivalents | $ 16,225,503 | $ 21,388,624 | $ 18,926,933 | $ 12,138,179 | $ 4,235,315 | $ 8,610,996 |
Receivables (Details)
Receivables (Details) - CAD ($) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2019 | Dec. 31, 2018 | |
Disclosure of detailed information about financial instruments [line items] | ||
Receivables | $ 387,131 | $ 1,190,689 |
Revenue from contract with customers | 125,426 | 61,786 |
Trade receivable | ||
Disclosure of detailed information about financial instruments [line items] | ||
Receivables | 78,913 | 84,443 |
Construction contract asset | ||
Disclosure of detailed information about financial instruments [line items] | ||
Receivables | 88,691 | 125,426 |
GST receivable | ||
Disclosure of detailed information about financial instruments [line items] | ||
Receivables | 62,475 | 278,182 |
SR&ED tax credits receivable | ||
Disclosure of detailed information about financial instruments [line items] | ||
Receivables | 675,000 | |
Other receivable | ||
Disclosure of detailed information about financial instruments [line items] | ||
Receivables | $ 157,052 | $ 27,638 |
Plant and equipment (Details)
Plant and equipment (Details) - CAD ($) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2019 | Dec. 31, 2018 | |
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning balance | $ 5,323,766 | |
Ending balance | 10,172,987 | $ 5,323,766 |
Cost | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning balance | 5,950,228 | 1,769,807 |
Additions | 5,640,512 | 4,182,422 |
Disposals | (2,150) | (2,001) |
Ending balance | 11,590,740 | 5,950,228 |
Amortization | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning balance | 626,462 | 376,124 |
Additions | 792,545 | |
Disposals | (1,254) | |
Charge for the year | 250,338 | |
Ending balance | 1,417,753 | 626,462 |
Furniture and equipment [Member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning balance | 263,689 | |
Ending balance | 281,630 | 263,689 |
Furniture and equipment [Member] | Cost | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning balance | 494,487 | 290,843 |
Additions | 75,982 | 203,644 |
Ending balance | 570,469 | 494,487 |
Furniture and equipment [Member] | Amortization | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning balance | 230,798 | 188,606 |
Additions | 58,041 | |
Charge for the year | 42,192 | |
Ending balance | 288,839 | 230,798 |
Computer hardware and software | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning balance | 67,714 | |
Ending balance | 114,882 | 67,714 |
Computer hardware and software | Cost | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning balance | 133,403 | 73,654 |
Additions | 93,128 | 59,749 |
Disposals | (2,150) | |
Ending balance | 224,381 | 133,403 |
Computer hardware and software | Amortization | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning balance | 65,689 | 27,147 |
Additions | 45,064 | |
Disposals | (1,254) | |
Charge for the year | 38,542 | |
Ending balance | 109,499 | 65,689 |
Vehicles | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning balance | 172,798 | |
Ending balance | 77,216 | 172,798 |
Vehicles | Cost | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning balance | 388,049 | 390,050 |
Disposals | (2,001) | |
Ending balance | 388,049 | 388,049 |
Vehicles | Amortization | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning balance | 215,251 | 85,764 |
Additions | 95,582 | |
Charge for the year | 129,487 | |
Ending balance | 310,833 | 215,251 |
Leasehold improvements | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning balance | 269,617 | |
Ending balance | 297,876 | 269,617 |
Leasehold improvements | Cost | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning balance | 384,341 | 101,200 |
Additions | 116,665 | 283,141 |
Ending balance | 501,006 | 384,341 |
Leasehold improvements | Amortization | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning balance | 114,724 | 74,607 |
Additions | 88,406 | |
Charge for the year | 40,117 | |
Ending balance | 203,130 | 114,724 |
Right-of-use assets | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Ending balance | 1,580,392 | |
Right-of-use assets | Cost | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Additions | 2,085,844 | |
Ending balance | 2,085,844 | |
Right-of-use assets | Amortization | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Additions | 505,452 | |
Ending balance | 505,452 | |
Production tooling and molds | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning balance | 4,549,948 | |
Ending balance | 7,820,991 | 4,549,948 |
Production tooling and molds | Cost | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning balance | 4,549,948 | 914,060 |
Additions | 3,271,043 | 3,635,888 |
Ending balance | $ 7,820,991 | $ 4,549,948 |
Plant and equipment - Aditional
Plant and equipment - Aditional information (Details) ¥ in Millions, $ in Millions | 1 Months Ended | 9 Months Ended | |||
Sep. 29, 2017CNY (¥) | Sep. 30, 2019item | Oct. 16, 2017CNY (¥)shares | Oct. 16, 2017CAD ($)shares | Sep. 29, 2017CAD ($) | |
Manufacturing Agreement | |||||
Disclosure of detailed information about property, plant and equipment [line items] | |||||
Description of purchase orders | Company's purchase orders as follows: 30% 60 days prior to scheduled Zongshen production, and 70% after accepted vehicle delivery | ||||
Minimum purchase commitments 2019 | 5,000 | ||||
Minimum purchase commitments 2020 | 20,000 | ||||
Minimum purchase commitments 2021 | 50,000 | ||||
Manufacturing Agreement | Chongqing Zongshen Automobile Co., Ltd. | |||||
Disclosure of detailed information about property, plant and equipment [line items] | |||||
Description of manufacturing agreement | payable 50% when Zongshen commences manufacturing the tooling and molds, 40% when Zongshen completes manufacturing the tooling and molds, and 10% upon delivery to the Company of the first production vehicle. As at September 30, 2019, the Company has completed the prototype tooling and molds with actual cost of CNY ¥10.1 million ($1.9) million), as assessed by the company, the prototype tooling and molds will be used for the mass production. The Company has paid 90% of prototype tooling and molds and 78% of the mass production tooling and molds. Depreciation on the production tooling and molds is charged on a per unit produced basis and during the period no units had been produced using the production tooling and molds. | ||||
Manufacturing Agreement | Chongqing Zongshen Automobile Co., Ltd. | Prototype Tooling and Molds | |||||
Disclosure of detailed information about property, plant and equipment [line items] | |||||
Agreement estimated cost | ¥ 9.5 | $ 1.8 | |||
Manufacturing Agreement | Chongqing Zongshen Automobile Co., Ltd. | Mass Production Tooling and Molds | |||||
Disclosure of detailed information about property, plant and equipment [line items] | |||||
Agreement estimated cost | ¥ 39.3 | $ 7.8 | |||
Share Pledge Agreement | Chongqing Zongshen Automobile Co., Ltd. | Prototype Tooling and Molds | |||||
Disclosure of detailed information about property, plant and equipment [line items] | |||||
Agreement estimated cost | ¥ 9.5 | $ 1.8 | |||
Share pledge agreement common shares | shares | 400,000 | 400,000 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets (Details) - CAD ($) | Sep. 30, 2019 | Dec. 31, 2018 |
Disclosure of reconciliation of changes in goodwill [line items] | ||
Goodwill and other intangible assets | $ 1,240,381 | $ 1,239,123 |
Identifiable intangibles | ||
Disclosure of reconciliation of changes in goodwill [line items] | ||
Goodwill and other intangible assets | 525,317 | 529,067 |
Goodwill | ||
Disclosure of reconciliation of changes in goodwill [line items] | ||
Goodwill and other intangible assets | 699,844 | 699,844 |
Other intangibles | ||
Disclosure of reconciliation of changes in goodwill [line items] | ||
Goodwill and other intangible assets | $ 15,220 | $ 10,212 |
Trade payables and accrued li_3
Trade payables and accrued liabilities (Details) - CAD ($) | Sep. 30, 2019 | Dec. 31, 2018 |
Trade payables and accrued liabilities | ||
Trade payables | $ 468,874 | $ 635,622 |
Wages payables | 92,890 | 80,573 |
Due to related parties (Note 16) | 367,413 | 83,331 |
Accrued liabilities | 256,801 | 463,335 |
Trade payables and accrued liabilities | $ 1,185,978 | $ 1,262,861 |
Lease liabilities (Details)
Lease liabilities (Details) - CAD ($) | 3 Months Ended | |
Sep. 30, 2019 | Jan. 01, 2019 | |
Disclosure of maturity analysis of lease payments [line items] | ||
Future minimum lease payments | $ 1,918,751 | |
Interest | 284,016 | |
Lease liabilities | 1,634,735 | $ 2,106,966 |
Current portion of lease liabilities | 633,883 | |
Non-current portion of lease liabilities | 1,000,852 | |
Within one year | ||
Disclosure of maturity analysis of lease payments [line items] | ||
Future minimum lease payments | 746,394 | |
Interest | 112,511 | |
Lease liabilities | 633,883 | |
Between one and five years | ||
Disclosure of maturity analysis of lease payments [line items] | ||
Future minimum lease payments | 976,313 | |
Interest | 158,926 | |
Lease liabilities | 817,387 | |
More than five years | ||
Disclosure of maturity analysis of lease payments [line items] | ||
Future minimum lease payments | 196,044 | |
Interest | 12,579 | |
Lease liabilities | $ 183,465 |
Lease liabilities - Additional
Lease liabilities - Additional information (Details) | 9 Months Ended |
Sep. 30, 2019 | |
Lease liabilities. | |
Term of leases expire | 5 years |
Derivative liability (Details)
Derivative liability (Details) - CAD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
Derivative liability | |||||
Balance, beginning | $ 4,752,875 | $ 3,655,690 | $ 3,655,690 | ||
Warrants issued | 0 | 8,935,289 | |||
Warrants exercised | (607,133) | (131,053) | |||
Changes in fair value of derivative liability | $ (2,107,474) | $ (1,919,072) | 3,412,917 | $ (4,945,126) | (7,707,051) |
Balance, ending | $ 7,558,659 | $ 7,558,659 | $ 4,752,875 |
Derivative liability - Addition
Derivative liability - Additional Information (Details) | 9 Months Ended |
Sep. 30, 2019$ / sharesshares | |
Derivative liability | |
Number Of Shares Issued As Result Of Warrants Exercised | shares | 646,300 |
Warrants Outstanding Exercise Price | $ / shares | $ 4.25 |
Share capital - Changes in opti
Share capital - Changes in options (Details) - Stock options | 9 Months Ended |
Sep. 30, 2019$ / sharesshares | |
Disclosure of classes of share capital [line items] | |
Number of options, Options outstanding, beginning | shares | 4,756,174 |
Number of options, Options granted | shares | 3,360,000 |
Number of options, Options exercised | shares | (43,760) |
Number of options, Options forfeited | shares | (121,373) |
Number of options, Options cancelled | shares | (275,000) |
Number of options, Options outstanding, ending | shares | 7,676,041 |
Weighted average exercise price, Options outstanding, beginning | $ / shares | $ 2.73 |
Weighted average exercise price, Options granted | $ / shares | 3.76 |
Weighted average exercise price, Options exercised | $ / shares | 0.80 |
Weighted average exercise price, Options forfeited | $ / shares | 8.30 |
Weighted average exercise price, Options cancelled | $ / shares | 11.75 |
Weighted average exercise price, Options outstanding, ending | $ / shares | $ 2.19 |
Share capital - Options outstan
Share capital - Options outstanding (Details) - Stock options | 9 Months Ended | |
Sep. 30, 2019$ / sharesshares | Sep. 30, 2019$ / sharesshares | |
Disclosure of classes of share capital [line items] | ||
Weighted average contractual life | 4 years 5 months 16 days | |
Number of options outstanding | 7,676,041 | 7,676,041 |
Number of options exercisable | 5,087,969 | 5,087,969 |
Exercise price $ 0.30 | ||
Disclosure of classes of share capital [line items] | ||
Exercise price | $ / shares | $ 0.30 | |
Weighted average contractual life | 2 years 8 months 12 days | |
Number of options outstanding | 2,045,455 | 2,045,455 |
Number of options exercisable | 2,045,455 | 2,045,455 |
Exercise price $ 0.30 | ||
Disclosure of classes of share capital [line items] | ||
Exercise price | $ / shares | $ 0.30 | |
Weighted average contractual life | 2 years 10 months 13 days | |
Number of options outstanding | 308,522 | 308,522 |
Number of options exercisable | 308,522 | 308,522 |
Exercise price $ 0.80 | ||
Disclosure of classes of share capital [line items] | ||
Exercise price | $ / shares | $ 0.80 | |
Weighted average contractual life | 3 years 2 months 9 days | |
Number of options outstanding | 632,458 | 632,458 |
Number of options exercisable | 614,710 | 614,710 |
Exercise price $ 0.80 | ||
Disclosure of classes of share capital [line items] | ||
Exercise price | $ / shares | $ 0.80 | |
Weighted average contractual life | 3 years 5 months 9 days | |
Number of options outstanding | 12,500 | 12,500 |
Number of options exercisable | 11,197 | 11,197 |
Exercise price $ 2.00 | ||
Disclosure of classes of share capital [line items] | ||
Exercise price | $ / shares | $ 2 | |
Weighted average contractual life | 3 years 8 months 23 days | |
Number of options outstanding | 12,500 | 12,500 |
Number of options exercisable | 10,416 | 10,416 |
Exercise price $ 2.00 | ||
Disclosure of classes of share capital [line items] | ||
Exercise price | $ / shares | $ 2 | |
Weighted average contractual life | 4 years 4 months 21 days | |
Number of options outstanding | 350,622 | 350,622 |
Number of options exercisable | 320,562 | 320,562 |
Exercise price $ 2.00 | ||
Disclosure of classes of share capital [line items] | ||
Exercise price | $ / shares | $ 2 | |
Weighted average contractual life | 4 years 10 months 10 days | |
Number of options outstanding | 50,000 | 50,000 |
Number of options exercisable | 27,087 | 27,087 |
Exercise price $ 9.60 USD | ||
Disclosure of classes of share capital [line items] | ||
Exercise price | $ / shares | $ 9.60 | |
Weighted average contractual life | 5 years 3 months 7 days | |
Number of options outstanding | 199,060 | 199,060 |
Number of options exercisable | 100,570 | 100,570 |
Exercise price $ 6.18 USD | ||
Disclosure of classes of share capital [line items] | ||
Exercise price | $ / shares | $ 6.18 | |
Weighted average contractual life | 5 years 10 months 10 days | |
Number of options outstanding | 175,000 | 175,000 |
Number of options exercisable | 51,042 | 51,042 |
Exercise price $ 1.53 USD | ||
Disclosure of classes of share capital [line items] | ||
Exercise price | $ / shares | $ 1.53 | |
Weighted average contractual life | 4 years 1 month 21 days | |
Number of options outstanding | 120,000 | 120,000 |
Number of options exercisable | 90,000 | 90,000 |
Exercise price $ 5.00 USD | ||
Disclosure of classes of share capital [line items] | ||
Exercise price | $ / shares | $ 5 | |
Weighted average contractual life | 4 years 2 months 1 day | |
Number of options outstanding | 409,924 | 409,924 |
Number of options exercisable | 409,924 | 409,924 |
Exercise price $ 3.40 USD | ||
Disclosure of classes of share capital [line items] | ||
Exercise price | $ / shares | $ 3.40 | |
Weighted average contractual life | 6 years 5 months 19 days | |
Number of options outstanding | 1,228,182 | 1,228,182 |
Number of options exercisable | 868,182 | 868,182 |
Exercise price $ 2.62 USD | ||
Disclosure of classes of share capital [line items] | ||
Exercise price | $ / shares | $ 2.62 | |
Weighted average contractual life | 2 years 8 months 27 days | |
Number of options outstanding | 700,000 | 700,000 |
Number of options exercisable | 0 | 0 |
Exercise price $ 2.45 USD | ||
Disclosure of classes of share capital [line items] | ||
Exercise price | $ / shares | $ 2.45 | |
Weighted average contractual life | 6 years 10 months 6 days | |
Number of options outstanding | 1,250,000 | 1,250,000 |
Number of options exercisable | 208,334 | 208,334 |
Exercise price $ 2.53 USD | ||
Disclosure of classes of share capital [line items] | ||
Exercise price | $ / shares | $ 2.53 | |
Weighted average contractual life | 6 years 10 months 10 days | |
Number of options outstanding | 181,818 | 181,818 |
Number of options exercisable | 21,968 | 21,968 |
Share capital - Fair value of o
Share capital - Fair value of options (Details) - Stock options | 9 Months Ended |
Sep. 30, 2019 | |
Disclosure of classes of share capital [line items] | |
Annualized volatility | 62.29% |
Dividend rate | 0.00% |
Minimum | |
Disclosure of classes of share capital [line items] | |
Expected life of options | 3 years |
Risk-free interest rate | 1.25% |
Maximum | |
Disclosure of classes of share capital [line items] | |
Expected life of options | 5 years |
Risk-free interest rate | 1.58% |
Share capital - The changes in
Share capital - The changes in warrants (Details) - Warrants - $ / shares | 9 Months Ended | 12 Months Ended |
Sep. 30, 2019 | Dec. 31, 2018 | |
Disclosure of classes of share capital [line items] | ||
Number of warrants, Warrants outstanding, beginning | 22,369,718 | 11,856,857 |
Number of warrants, Warrants issued | 0 | 10,807,093 |
Number of warrants, Warrants exercised | (1,116,323) | (294,232) |
Number of warrants, Warrants outstanding, ending | 21,253,395 | 22,369,718 |
Weighted average exercise price, Warrants outstanding, beginning | $ 5.03 | $ 4.70 |
Weighted average exercise price, Warrants issued | 0 | 5.36 |
Weighted average exercise price, Warrants exercised | 3.82 | 5.08 |
Weighted average exercise price, Warrants outstanding, ending | $ 4.41 | $ 5.03 |
Share capital - Warrants outsta
Share capital - Warrants outstanding (Details) | 9 Months Ended | |||
Sep. 30, 2019$ / sharesshares | Sep. 30, 2019$ / sharesshares | Dec. 31, 2018shares | Dec. 31, 2017shares | |
Disclosure of classes of share capital [line items] | ||||
Exercise price | $ 4.25 | |||
Warrants | ||||
Disclosure of classes of share capital [line items] | ||||
Number of warrants outstanding | shares | 21,253,395 | 21,253,395 | 22,369,718 | 11,856,857 |
Warrants | Non-Transferable Warrants $0.80 CAD - $16.00 CAD | ||||
Disclosure of classes of share capital [line items] | ||||
Weighted average contractual life | 2 years 22 days | |||
Number of warrants outstanding | shares | 11,010,058 | 11,010,058 | ||
Warrants | Non-Transferable Warrants $0.80 CAD - $16.00 CAD | Minimum | ||||
Disclosure of classes of share capital [line items] | ||||
Exercise price | $ 0.80 | |||
Warrants | Non-Transferable Warrants $0.80 CAD - $16.00 CAD | Maximum | ||||
Disclosure of classes of share capital [line items] | ||||
Exercise price | $ 16 | |||
Warrants | Non-Transferable Warrants $2.00 USD - $24.00 USD | ||||
Disclosure of classes of share capital [line items] | ||||
Weighted average contractual life | 3 years 11 months 1 day | |||
Number of warrants outstanding | shares | 5,741,969 | 5,741,969 | ||
Warrants | Non-Transferable Warrants $2.00 USD - $24.00 USD | Minimum | ||||
Disclosure of classes of share capital [line items] | ||||
Exercise price | $ 2 | |||
Warrants | Non-Transferable Warrants $2.00 USD - $24.00 USD | Maximum | ||||
Disclosure of classes of share capital [line items] | ||||
Exercise price | 24 | |||
Warrants | Transferable Warrants $4.25 USD | ||||
Disclosure of classes of share capital [line items] | ||||
Exercise price | $ 4.25 | |||
Weighted average contractual life | 3 years 10 months 10 days | |||
Number of warrants outstanding | shares | 4,501,368 | 4,501,368 |
Share capital - Additional Info
Share capital - Additional Information (Details) | Oct. 15, 2019USD ($)$ / shares | Oct. 15, 2019CAD ($)$ / shares | Aug. 20, 2019shares | Jun. 17, 2019shares | Jun. 14, 2019CAD ($)USD ($)$ / shares | Jun. 12, 2019CAD ($)USD ($)$ / shares | May 15, 2019shares | Apr. 02, 2019$ / shares$ / shares | Apr. 02, 2019CAD ($)$ / sharesshares | Mar. 27, 2019CAD ($)shares | Mar. 14, 2019shares | Mar. 02, 2019CAD ($)$ / sharesshares | Feb. 28, 2019CAD ($)$ / sharesshares | Feb. 25, 2019USD ($)item$ / sharesshares | Feb. 20, 2019USD ($)item$ / shares | Feb. 15, 2019CAD ($)$ / sharesshares | Feb. 14, 2019CAD ($)$ / sharesshares | Jan. 31, 2019shares | Jan. 24, 2019shares | Jan. 15, 2019itemshares | Sep. 30, 2019CAD ($)shares | Jun. 30, 2019CAD ($)shares | Mar. 31, 2019CAD ($)shares | Sep. 30, 2018CAD ($)shares | Jun. 30, 2018CAD ($)shares | Mar. 31, 2018CAD ($)shares | Sep. 30, 2019CAD ($)$ / sharesshares | Sep. 30, 2018CAD ($)shares | Dec. 31, 2018shares | Dec. 31, 2017shares |
Disclosure of classes of share capital [line items] | ||||||||||||||||||||||||||||||
Number of common shares to settle debt for legal services | shares | 29,950 | |||||||||||||||||||||||||||||
Shares issued for services, shares (Note 12) | shares | 50,000 | |||||||||||||||||||||||||||||
Share issue related cost | $ 15,699 | $ 10,425 | ||||||||||||||||||||||||||||
Fair value of shares issued pursuant to exercise of warrants | 145,153 | $ 4,657,266 | ||||||||||||||||||||||||||||
Proceeds from exercise of options | $ 35,008 | |||||||||||||||||||||||||||||
Loss attributable to common shareholders | $ (5,347,878) | 3,303,266 | (20,627,182) | $ (2,890,570) | $ (2,616,215) | $ (2,403,974) | $ (22,671,794) | $ (7,910,509) | ||||||||||||||||||||||
Weighted average number of common shares outstanding | shares | 36,957,731 | 26,687,607 | 25,287,764 | 35,651,311 | 25,287,764 | |||||||||||||||||||||||||
Stock-based compensation expense | $ 1,597,779 | $ 644,228 | $ 4,148,806 | $ 2,528,643 | ||||||||||||||||||||||||||
Shares issued for finder's fees fair value | $ 23,678 | |||||||||||||||||||||||||||||
Number of warrants exercisable | shares | 212,500 | |||||||||||||||||||||||||||||
Shares issued pursuant to exercise of warrants | $ 145,153 | $ 4,657,266 | ||||||||||||||||||||||||||||
Consultant | ||||||||||||||||||||||||||||||
Disclosure of classes of share capital [line items] | ||||||||||||||||||||||||||||||
Number of consultant | item | 3 | |||||||||||||||||||||||||||||
Shares issued for services, shares (Note 12) | shares | 3,010 | 25,010 | 13,010 | 10,000 | 3,010 | 18,060 | 32,000 | |||||||||||||||||||||||
Number of options, Options cancelled | shares | 10,000 | |||||||||||||||||||||||||||||
CEO | ||||||||||||||||||||||||||||||
Disclosure of classes of share capital [line items] | ||||||||||||||||||||||||||||||
Warrant Exercise Price | $ / shares | $ 0.80 | |||||||||||||||||||||||||||||
Number of stock issued for exercise of warrants | shares | 25,000 | |||||||||||||||||||||||||||||
Fair value of shares issued pursuant to exercise of warrants | $ 20,000 | |||||||||||||||||||||||||||||
Warrants to acquire common shares for services | shares | 25,000 | |||||||||||||||||||||||||||||
Shares issued pursuant to exercise of warrants | $ 20,000 | |||||||||||||||||||||||||||||
Investors [Member] | ||||||||||||||||||||||||||||||
Disclosure of classes of share capital [line items] | ||||||||||||||||||||||||||||||
Warrant Exercise Price | (per share) | $ 0.80 | $ 2 | $ 4.25 | $ 4.25 | $ 0.80 | |||||||||||||||||||||||||
Number of stock issued for exercise of warrants | shares | 70,023 | 62,500 | 62,500 | 75,800 | 225,000 | |||||||||||||||||||||||||
Fair value of shares issued pursuant to exercise of warrants | $ 145,153 | $ 50,000 | $ 125,000 | $ 322,150 | $ 2,424,625 | $ 180,000 | ||||||||||||||||||||||||
Number of investor | item | 2 | 3 | ||||||||||||||||||||||||||||
Warrants to acquire common shares for services | shares | 70,023 | 62,500 | 62,500 | 75,800 | 225,000 | |||||||||||||||||||||||||
Shares issued pursuant to exercise of warrants | $ 145,153 | $ 50,000 | $ 125,000 | $ 322,150 | $ 2,424,625 | $ 180,000 | ||||||||||||||||||||||||
Investors [Member] | Stock options | ||||||||||||||||||||||||||||||
Disclosure of classes of share capital [line items] | ||||||||||||||||||||||||||||||
Proceeds from exercise of options | $ 16,656 | |||||||||||||||||||||||||||||
Stock options exercise price per share (in dollars per share) | $ / shares | $ 0.30 | $ 0.30 | ||||||||||||||||||||||||||||
Number of stock options exercised | 56,250 | |||||||||||||||||||||||||||||
Investors [Member] | Minimum [Member] | ||||||||||||||||||||||||||||||
Disclosure of classes of share capital [line items] | ||||||||||||||||||||||||||||||
Warrant Exercise Price | $ / shares | $ 0.80 | $ 0.80 | ||||||||||||||||||||||||||||
Investors [Member] | Maximum [Member] | ||||||||||||||||||||||||||||||
Disclosure of classes of share capital [line items] | ||||||||||||||||||||||||||||||
Warrant Exercise Price | $ / shares | $ 4 | $ 4 | ||||||||||||||||||||||||||||
Investor Two [Member] | ||||||||||||||||||||||||||||||
Disclosure of classes of share capital [line items] | ||||||||||||||||||||||||||||||
Warrant Exercise Price | $ / shares | $ 2 | |||||||||||||||||||||||||||||
Number of stock issued for exercise of warrants | shares | 25,000 | |||||||||||||||||||||||||||||
Fair value of shares issued pursuant to exercise of warrants | $ 50,000 | |||||||||||||||||||||||||||||
Warrants to acquire common shares for services | shares | 25,000 | |||||||||||||||||||||||||||||
Shares issued pursuant to exercise of warrants | $ 50,000 | |||||||||||||||||||||||||||||
Employee Stock Options Exercise [Member] | ||||||||||||||||||||||||||||||
Disclosure of classes of share capital [line items] | ||||||||||||||||||||||||||||||
Proceeds from exercise of options | $ 17,504 | $ 17,504 | ||||||||||||||||||||||||||||
Stock options exercise price per share (in dollars per share) | $ / shares | $ 0.80 | $ 0.80 | ||||||||||||||||||||||||||||
Number of stock options exercised | 21,880 | 21,880 | ||||||||||||||||||||||||||||
Employee Stock Options Exercise [Member] | Stock options | ||||||||||||||||||||||||||||||
Disclosure of classes of share capital [line items] | ||||||||||||||||||||||||||||||
Proceeds from exercise of options | $ 15,400 | $ 15,400 | ||||||||||||||||||||||||||||
Number of stock options exercised | 14,567 | |||||||||||||||||||||||||||||
Employee Stock Options Exercise [Member] | Minimum [Member] | Stock options | ||||||||||||||||||||||||||||||
Disclosure of classes of share capital [line items] | ||||||||||||||||||||||||||||||
Stock options exercise price per share (in dollars per share) | $ / shares | $ 0.80 | |||||||||||||||||||||||||||||
Employee Stock Options Exercise [Member] | Maximum [Member] | Stock options | ||||||||||||||||||||||||||||||
Disclosure of classes of share capital [line items] | ||||||||||||||||||||||||||||||
Stock options exercise price per share (in dollars per share) | $ / shares | $ 2 | |||||||||||||||||||||||||||||
Stock options | ||||||||||||||||||||||||||||||
Disclosure of classes of share capital [line items] | ||||||||||||||||||||||||||||||
Maximum number of common shares reserved for issuance | shares | 30,000,000 | |||||||||||||||||||||||||||||
Weighted average share price, share options granted | $ / shares | $ 1.83 | |||||||||||||||||||||||||||||
Stock options exercisable period | 7 years | |||||||||||||||||||||||||||||
Share capital | ||||||||||||||||||||||||||||||
Disclosure of classes of share capital [line items] | ||||||||||||||||||||||||||||||
Number of shares issued | shares | 36,952,820 | 36,952,820 | 32,332,343 | |||||||||||||||||||||||||||
Number of shares outstanding | shares | 36,952,820 | 36,959,810 | 36,804,997 | 27,786,111 | 25,060,133 | 24,559,728 | 36,952,820 | 27,786,111 | 32,332,343 | 23,794,106 | ||||||||||||||||||||
Shares issued for cash, net of derivative liability, shares | shares | 3,333,334 | |||||||||||||||||||||||||||||
Proceeds from issuance of common stock | $ 16,085,772 | |||||||||||||||||||||||||||||
Shares issued for services, shares (Note 12) | shares | 93,020 | 3,010 | 41,030 | 93,020 | 100,000 | 75,000 | ||||||||||||||||||||||||
Fair value of common shares for services | $ 201,077 | |||||||||||||||||||||||||||||
Share issue related cost | $ 1,386,675 | $ 15,699 | $ 10,425 | |||||||||||||||||||||||||||
Fair value of shares issued pursuant to exercise of warrants | 145,153 | $ 4,657,266 | ||||||||||||||||||||||||||||
Shares issued for finder's fees | shares | 2,286 | |||||||||||||||||||||||||||||
Shares issued for finder's fees fair value | $ 23,678 | |||||||||||||||||||||||||||||
Number of shares issued during the year | shares | 3,333,334 | 2,625,978 | 425,405 | 757,138 | ||||||||||||||||||||||||||
Shares issued pursuant to exercise of warrants | $ 145,153 | $ 4,657,266 | ||||||||||||||||||||||||||||
Number of shares issued for stock option exercised | shares | 43,760 | 6,198 |
General and administrative ex_3
General and administrative expenses (Details) - CAD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
General and administrative expenses | ||||
Rent | $ 87,777 | $ 110,779 | $ 283,261 | $ 283,820 |
Office expenses | 407,095 | 113,602 | 1,181,434 | 340,776 |
Legal and professional | 522,183 | 490,622 | 1,343,885 | 999,785 |
Consulting fees | 535,303 | 362,585 | 1,373,906 | 736,680 |
Investor relations | 53,112 | 254,248 | 261,814 | 416,631 |
Salaries | 718,388 | 354,689 | 1,383,896 | 818,306 |
General and administrative expenses | $ 2,323,858 | $ 1,686,525 | $ 5,828,196 | $ 3,595,998 |
Research and development expe_3
Research and development expenses (Details) - CAD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Research and development expenses | ||||
Labour | $ 1,265,310 | $ 873,905 | $ 3,606,535 | $ 2,401,339 |
Materials | 2,003,246 | 757,505 | 3,602,274 | 2,517,477 |
Government grants | (1,800) | (725,599) | (382,993) | (734,229) |
Research and development expenses | $ 3,266,756 | $ 905,811 | $ 6,825,816 | $ 4,184,587 |
Sales and marketing expenses (D
Sales and marketing expenses (Details) - CAD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Sales and marketing expenses | ||||
Consulting | $ 40,921 | $ 84,489 | $ 264,750 | $ 204,004 |
Marketing | 153,111 | 142,372 | 441,254 | 356,226 |
Salaries | 258,776 | 129,945 | 559,342 | 272,820 |
Total sales and marketing expenses | $ 452,808 | $ 356,806 | $ 1,265,346 | $ 833,050 |
Segmented information (Details)
Segmented information (Details) - CAD ($) | 3 Months Ended | 9 Months Ended | |||||||
Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
Disclosure of operating segments [line items] | |||||||||
Revenue | $ 200,068 | $ 189,902 | $ 461,334 | $ 635,401 | |||||
Gross profit | 65,598 | 49,807 | 64,060 | 199,987 | |||||
Operating expenses | 7,870,707 | 3,975,247 | 19,073,592 | 12,275,447 | |||||
Current income tax expense | 2,140 | ||||||||
Deferred income tax recovery | (6,894) | (56,069) | |||||||
Net loss | (5,333,621) | (2,890,320) | (22,682,124) | (7,910,509) | |||||
FX translation | 186,848 | (256,131) | (479,721) | (152,354) | |||||
Comprehensive loss | (5,347,878) | $ 3,303,266 | $ (20,627,182) | (2,890,570) | $ (2,616,215) | $ (2,403,974) | (22,671,794) | (7,910,509) | |
Inventory | 864,816 | 864,816 | $ 420,737 | ||||||
Plant and equipment | 10,172,987 | 10,172,987 | 5,323,766 | ||||||
Electric Vehicles | |||||||||
Disclosure of operating segments [line items] | |||||||||
Revenue | 0 | 0 | |||||||
Gross profit | 0 | 0 | |||||||
Operating expenses | 7,742,592 | 3,863,883 | 18,753,216 | 11,992,137 | |||||
Other items | (2,475,303) | (1,038,235) | 3,713,023 | (4,183,985) | |||||
Current income tax expense | 2,140 | 0 | |||||||
Deferred income tax recovery | 0 | 0 | |||||||
Net loss | 5,287,289 | 2,825,648 | 22,468,379 | 7,808,152 | |||||
FX translation | 14,257 | 0 | (10,330) | 0 | |||||
Comprehensive loss | 5,281,546 | 2,825,648 | 22,458,049 | 7,808,152 | |||||
Inventory | 638,458 | 638,458 | 189,182 | ||||||
Plant and equipment | 9,751,991 | 9,751,991 | 5,299,857 | ||||||
Custom Built Vehicles | |||||||||
Disclosure of operating segments [line items] | |||||||||
Revenue | 200,068 | 189,902 | 461,334 | 635,401 | |||||
Gross profit | 65,598 | 49,807 | 64,060 | 199,987 | |||||
Operating expenses | 128,115 | 111,364 | 32,037,600 | 283,310 | |||||
Other items | 10,709 | 3,115 | 13,498 | 19,034 | |||||
Current income tax expense | 0 | ||||||||
Deferred income tax recovery | (6,894) | 0 | (56,069) | 0 | |||||
Net loss | 66,332 | 64,672 | 213,745 | 102,357 | |||||
FX translation | 0 | 0 | |||||||
Comprehensive loss | 66,332 | $ 64,672 | 213,745 | $ 102,357 | |||||
Inventory | 226,358 | 226,358 | 231,555 | ||||||
Plant and equipment | $ 420,996 | $ 420,996 | $ 23,909 |
Segmented information - Additio
Segmented information - Additional Information (Details) | 9 Months Ended |
Sep. 30, 2019segment | |
Segmented information | |
Number of reportable business segments | 2 |
Related party transactions -amo
Related party transactions -amounts are due to related parties (Details) - CAD ($) | Sep. 30, 2019 | Dec. 31, 2018 |
Disclosure of transactions between related parties [line items] | ||
Amounts due to related parties | $ 370,528 | $ 89,561 |
Shareholder loan | ||
Disclosure of transactions between related parties [line items] | ||
Amounts due to related parties | 3,115 | 6,230 |
Due to related parties | ||
Disclosure of transactions between related parties [line items] | ||
Amounts due to related parties | $ 367,413 | $ 83,331 |
Related party transactions-Key
Related party transactions-Key management personnel compensation (Details) - CAD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Related party transactions | ||||
Consulting fees | $ 137,569 | $ 90,166 | $ 382,701 | $ 222,166 |
Salary | 217,017 | 139,440 | 515,684 | 284,000 |
Directors fees | 135,723 | 52,178 | 296,201 | 97,779 |
Stock-based compensation | 1,372,613 | 367,611 | 3,328,759 | 1,322,406 |
Key management personnel compensation | $ 1,862,922 | $ 649,395 | $ 4,523,345 | $ 1,926,351 |
Financial instruments and fin_3
Financial instruments and financial risk management - Analysis of the contractual maturities (Details) - CAD ($) | Sep. 30, 2019 | Dec. 31, 2018 |
Within one year | ||
Disclosure of maturity analysis for derivative financial liabilities [line items] | ||
Total non-derivative financial liabilities | $ 1,689,132 | $ 1,671,874 |
Between one and five years | ||
Disclosure of maturity analysis for derivative financial liabilities [line items] | ||
Total non-derivative financial liabilities | 0 | 0 |
More than five years | ||
Disclosure of maturity analysis for derivative financial liabilities [line items] | ||
Total non-derivative financial liabilities | 0 | 0 |
Trade payables | Within one year | ||
Disclosure of maturity analysis for derivative financial liabilities [line items] | ||
Total non-derivative financial liabilities | 836,287 | 718,953 |
Trade payables | Between one and five years | ||
Disclosure of maturity analysis for derivative financial liabilities [line items] | ||
Total non-derivative financial liabilities | 0 | 0 |
Trade payables | More than five years | ||
Disclosure of maturity analysis for derivative financial liabilities [line items] | ||
Total non-derivative financial liabilities | 0 | 0 |
Accrued liabilities | Within one year | ||
Disclosure of maturity analysis for derivative financial liabilities [line items] | ||
Total non-derivative financial liabilities | 349,691 | 543,908 |
Accrued liabilities | Between one and five years | ||
Disclosure of maturity analysis for derivative financial liabilities [line items] | ||
Total non-derivative financial liabilities | 0 | 0 |
Accrued liabilities | More than five years | ||
Disclosure of maturity analysis for derivative financial liabilities [line items] | ||
Total non-derivative financial liabilities | 0 | 0 |
Customer deposits and contract liabilities | Within one year | ||
Disclosure of maturity analysis for derivative financial liabilities [line items] | ||
Total non-derivative financial liabilities | 500,039 | 402,783 |
Customer deposits and contract liabilities | Between one and five years | ||
Disclosure of maturity analysis for derivative financial liabilities [line items] | ||
Total non-derivative financial liabilities | 0 | 0 |
Customer deposits and contract liabilities | More than five years | ||
Disclosure of maturity analysis for derivative financial liabilities [line items] | ||
Total non-derivative financial liabilities | 0 | 0 |
Shareholder loan | Within one year | ||
Disclosure of maturity analysis for derivative financial liabilities [line items] | ||
Total non-derivative financial liabilities | 3,115 | 6,230 |
Shareholder loan | Between one and five years | ||
Disclosure of maturity analysis for derivative financial liabilities [line items] | ||
Total non-derivative financial liabilities | 0 | 0 |
Shareholder loan | More than five years | ||
Disclosure of maturity analysis for derivative financial liabilities [line items] | ||
Total non-derivative financial liabilities | $ 0 | $ 0 |
Financial instruments and fin_4
Financial instruments and financial risk management - Statement of financial position (Details) - CAD ($) | Sep. 30, 2019 | Dec. 31, 2018 |
Disclosure of Financial Assets and Liabilities [line items] | ||
Financial assets and liabilities | $ 14,890,135 | $ 17,771,949 |
Cash and cash equivalents | ||
Disclosure of Financial Assets and Liabilities [line items] | ||
Financial assets and liabilities | 15,811,171 | 18,102,872 |
Trade receivable | ||
Disclosure of Financial Assets and Liabilities [line items] | ||
Financial assets and liabilities | 102,358 | 51,164 |
Trade payables | ||
Disclosure of Financial Assets and Liabilities [line items] | ||
Financial assets and liabilities | (122,274) | $ (382,087) |
Customer deposits | ||
Disclosure of Financial Assets and Liabilities [line items] | ||
Financial assets and liabilities | (63,540) | |
Lease liabilities [member] | ||
Disclosure of Financial Assets and Liabilities [line items] | ||
Financial assets and liabilities | $ (837,580) |
Financial instruments and fin_5
Financial instruments and financial risk management - Financial liabilities (Details) - CAD ($) | Sep. 30, 2019 | Dec. 31, 2018 |
Disclosure of detailed information about financial instruments [line items] | ||
Financial assets | $ 16,612,634 | $ 20,117,622 |
Financial liabilities | 9,247,791 | 6,424,749 |
Cash and cash equivalents | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial assets | 16,225,503 | 18,926,933 |
Receivables | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial assets | 387,131 | 1,190,689 |
Non-derivative financial liabilities | Trade payable and accrued liabilities | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial liabilities | 1,185,978 | 1,262,861 |
Non-derivative financial liabilities | Customer deposits and contract liabilities | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial liabilities | 500,039 | 402,783 |
Non-derivative financial liabilities | Shareholder loan | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial liabilities | 3,115 | 6,230 |
Derivative financial liabilities | Derivative liability | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial liabilities | $ 7,558,659 | $ 4,752,875 |
Financial instruments and fin_6
Financial instruments and financial risk management - Additional information (Details) - CAD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Disclosure of risk management strategy related to hedge accounting [line items] | ||||
Impact of net loss | $ 186,848 | $ (256,131) | $ (479,721) | $ (152,354) |
Derivative liability | $ 544,540 | $ 544,540 | ||
Percentage of volatility used was increased | 10.00% | |||
Interest rate risk | ||||
Disclosure of risk management strategy related to hedge accounting [line items] | ||||
Impact of net loss | $ 139,130 | |||
Change in market interest rates | 1.00% | |||
Foreign exchange risk | ||||
Disclosure of risk management strategy related to hedge accounting [line items] | ||||
Impact of net loss | $ 1,489,014 | |||
Change in the US dollars to Canadian dollar exchange rate | 10.00% |
Subsequent event (Details)
Subsequent event (Details) | Oct. 15, 2019USD ($)$ / shares | Oct. 15, 2019CAD ($)$ / shares | Jun. 14, 2019CAD ($)USD ($)$ / shares | Jun. 12, 2019CAD ($)USD ($)$ / shares | Apr. 02, 2019$ / shares | Sep. 30, 2019CAD ($) |
Disclosure of non-adjusting events after reporting period [line items] | ||||||
Proceeds from exercise of options | $ 35,008 | |||||
Employee Stock Options Exercise [Member] | ||||||
Disclosure of non-adjusting events after reporting period [line items] | ||||||
Proceeds from exercise of options | $ 17,504 | $ 17,504 | ||||
Exercise price, share options granted | $ / shares | $ 0.80 | $ 0.80 | ||||
Number of stock options exercised | 21,880 | 21,880 | ||||
Subsidiaries [member] | EMV Automotive Technology [Member] | ||||||
Disclosure of non-adjusting events after reporting period [line items] | ||||||
Investments in subsidiaries | $ 600,000 | |||||
Capital commitments | 500,000 | |||||
Stock options | Investors [Member] | ||||||
Disclosure of non-adjusting events after reporting period [line items] | ||||||
Proceeds from exercise of options | $ 16,656 | |||||
Exercise price, share options granted | $ / shares | $ 0.30 | $ 0.30 | ||||
Number of stock options exercised | 56,250 | |||||
Stock options | Employee Stock Options Exercise [Member] | ||||||
Disclosure of non-adjusting events after reporting period [line items] | ||||||
Proceeds from exercise of options | $ 15,400 | $ 15,400 | ||||
Number of stock options exercised | 14,567 | |||||
Stock options | Employee Stock Options Exercise [Member] | Minimum [Member] | ||||||
Disclosure of non-adjusting events after reporting period [line items] | ||||||
Exercise price, share options granted | $ / shares | $ 0.80 | |||||
Stock options | Employee Stock Options Exercise [Member] | Maximum [Member] | ||||||
Disclosure of non-adjusting events after reporting period [line items] | ||||||
Exercise price, share options granted | $ / shares | $ 2 |