Document and Entity Information
Document and Entity Information | 3 Months Ended |
Mar. 31, 2020 | |
Document and Entity Information | |
Entity Registrant Name | ELECTRAMECCANICA VEHICLES CORP. |
Entity Central Index Key | 0001637736 |
Amendment Flag | false |
Document Fiscal Period Focus | Q1 |
Current Fiscal Year End Date | --12-31 |
Document Type | 6-K |
Document Period End Date | Mar. 31, 2020 |
Document Fiscal Year Focus | 2020 |
Condensed Unaudited Consolidate
Condensed Unaudited Consolidated Statements of Financial Position - CAD ($) | Mar. 31, 2020 | Dec. 31, 2019 | |
Current assets | |||
Cash and cash equivalents | $ 7,534,585 | $ 11,095,848 | |
Receivables | 212,431 | 440,930 | |
Prepaid expenses | 6,565,935 | 6,580,976 | |
Inventory | 772,205 | 750,151 | |
Current assets | 15,085,156 | 18,867,905 | |
Non-current assets | |||
Restricted cash | 191,675 | 184,314 | |
Plant and equipment | 9,659,337 | 9,990,542 | |
Net investment in sublease | 223,034 | ||
Goodwill and other intangible assets | 1,237,881 | 1,239,131 | |
Total Assets | 26,397,083 | 30,281,892 | |
Current liabilities | |||
Trade payables and accrued liabilities | 2,093,777 | 2,128,226 | |
Customer deposits | 405,156 | 411,479 | |
Construction contract liability | 219,994 | 199,465 | |
Shareholder loan | 1,038 | 2,076 | |
Deferred income tax | 10,905 | 42,855 | |
Current portion of lease liabilities | 581,534 | 604,886 | |
Total Current Liabilities | 3,312,404 | 3,388,987 | |
Non-current liabilities | |||
Derivative liability | [1] | 3,070,012 | 7,072,134 |
Lease liabilities | 747,602 | 858,790 | |
TOTAL LIABILITIES | 7,130,018 | 11,319,911 | |
EQUITY | |||
Share capital | 66,512,083 | 66,574,255 | |
Deficit | (64,024,189) | (62,116,008) | |
Reserves | 16,779,171 | 14,503,734 | |
TOTAL EQUITY | 19,267,065 | 18,961,981 | |
TOTAL LIABILITIES AND EQUITY | $ 26,397,083 | $ 30,281,892 | |
[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 | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Condensed Unaudited Consolidated Statements of Comprehensive Loss | ||
Revenue | $ 116,813 | $ 101,404 |
Cost of revenue | 167,095 | 96,152 |
Gross profit / (loss) | (50,282) | 5,252 |
Operating expenses | ||
Amortization | 233,629 | 268,682 |
General and administrative expenses | 2,211,820 | 1,912,675 |
Research and development expenses | 1,531,546 | 1,643,555 |
Sales and marketing expenses | 350,227 | 372,000 |
Stock-based compensation expense | 2,534,558 | 1,999,992 |
Share-based payment expense | 74,841 | |
Operating expenses | (6,861,780) | (6,271,745) |
Operating loss | 6,912,062 | 6,266,493 |
Other items | ||
Interest (income)/expense | (38,645) | |
Accretion interest expense | 31,853 | |
Changes in fair value of warrant derivative | (4,002,122) | 14,066,610 |
Other income | (10,141) | (39,545) |
Foreign exchange (gain)/loss | (922,099) | 347,210 |
Income tax recovery | (30,874) | (42,756) |
Loss before taxes | (1,939,055) | (20,672,621) |
Net loss | (1,908,181) | (20,629,865) |
Other comprehensive income/(loss) | (259,121) | 2,683 |
Comprehensive loss | $ (2,167,302) | $ (20,627,182) |
Loss per Share - Basic and Diluted | $ (0.05) | $ (0.62) |
Weighted average number of shares outstanding - basic and fully diluted | 37,049,539 | 33,044,040 |
Condensed Unaudited Consolida_3
Condensed Unaudited Consolidated Statements of Changes in Equity - CAD ($) | Share capital | Share-based payment reserve | Foreign Currency Translation Reserve | Deficit | Total |
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 | |||
Net loss for the quarter | (20,629,865) | (20,629,865) | |||
Foreign currency translation reserve | 2,683 | 2,683 | |||
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, 2019 | $ 66,574,255 | 14,447,529 | 56,205 | (62,116,008) | 18,961,981 |
Beginning balance, shares at Dec. 31, 2019 | 37,049,374 | ||||
Shares issued for cash | $ 11,158 | 11,158 | |||
Shares issued for cash (in shares) | 7,500 | ||||
Shares issuance costs | $ (73,330) | (73,330) | |||
Stock-based compensation | 2,534,558 | 2,534,558 | |||
Net loss for the quarter | (1,908,181) | (1,908,181) | |||
Foreign currency translation reserve | (259,121) | (259,121) | |||
Ending balance at Mar. 31, 2020 | $ 66,512,083 | $ 16,982,087 | $ (202,916) | $ (64,024,189) | $ 19,267,065 |
Ending balance, shares at Mar. 31, 2020 | 37,056,874 |
Condensed Unaudited Consolida_4
Condensed Unaudited Consolidated Statements of Cash Flows - CAD ($) | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Operating activities | ||
Net Loss | $ (1,908,181) | $ (20,629,865) |
Adjustments for: | ||
Amortization | 233,629 | 268,682 |
Stock-based compensation expense | 2,534,558 | 1,999,992 |
Share-based payment expense | 74,841 | |
Accretion interest expense | 31,853 | |
Interest (income)/expense | (38,645) | |
Changes in fair value of warrant derivative | (4,002,122) | 14,066,610 |
Deferred income tax recovery | (31,950) | (42,756) |
Changes in non-cash working capital items: | ||
Receivables | 110,742 | 63,723 |
Prepaid expenses | 15,041 | (1,888,106) |
Inventory | (22,054) | (441,688) |
Trade payables and accrued liabilities | (126,175) | (177,160) |
Customer deposits and construction contract liability | 14,206 | 26,024 |
Net cash flows used in operating activities | (3,220,951) | (6,647,850) |
Investing activities | ||
Investments in restricted cash | (7,361) | 891 |
Expenditures on plant and equipment | (116,035) | (175,799) |
Proceeds from intangible assets | 8,042 | |
Net cash flows used in investing activities | (123,396) | (166,866) |
Financing activities | ||
Interest received | 193,458 | 9,121 |
Interest from net investment in sublease | 3,828 | |
Interest paid | (395) | (150) |
Interest on lease payments | (29,666) | (35,455) |
Repayment of shareholder loans | (1,038) | (1,039) |
Repayment of leases | (147,054) | (166,432) |
Payment received for net investment in sublease | 23,072 | |
Proceeds on issuance of common shares - net of issue costs | 14,725,221 | |
Proceeds from issuance of common shares for warrants exercised | 4,050,133 | |
Net cash flows from financing activities | 42,205 | 18,581,399 |
Increase/(decrease) in cash and cash equivalents | (3,302,142) | 11,766,683 |
Effect of exchange rate changes on cash | (259,121) | 2,683 |
Cash and cash equivalents, beginning | 11,095,848 | 18,926,933 |
Cash and cash equivalents, ending | $ 7,534,585 | 30,696,299 |
Supplemental schedule of non-cash financing and investing transactions: | ||
Shares issued for services | $ 201,077 |
Nature and continuance of opera
Nature and continuance of operations | 3 Months Ended |
Mar. 31, 2020 | |
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. On October 15, 2019, the Company incorporated a wholly owned subsidiary EMV Automotive Technology (Chongqing) Inc. in Chongqing, China. On November 22, 2019, the Company incorporated SOLO EV, LLC, a wholly owned subsidiary of EMV Automotive USA Inc., in Michigan, 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 March 31, 2020, 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 cast substantial doubt about the Company’s ability to continue as a going concern. Management primarily 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 consolidated statement of financial position. |
Significant accounting policies
Significant accounting policies and basis of preparation | 3 Months Ended |
Mar. 31, 2020 | |
Significant accounting policies and basis of preparation | |
Significant accounting policies and basis of preparation | 2. The consolidated financial statements were authorized for issue on May 12, 2020 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”). These interim condensed consolidated financial statements are prepared in accordance with International Accounting Standards (“IAS”) 34 – Interim Financial Reporting on a basis consistent with those followed in the most recent annual consolidated financial statements for the year ended December 31, 2019. These interim condensed consolidated financial statements do not include all of the information required for full annual financial statements and should be read in conjunction with the Company’s audited consolidated financial statements for the year ended December 31, 2019. Basis of preparation The consolidated financial statements of the Company have been prepared on an accrual basis and are based on historical costs except for derivative liabilities which are measured at fair value. 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., Intermeccanica from the date of its acquisition on October 18, 2017, EMV Automotive Technology (Chongqing) Inc. from the date of its incorporation on October 15, 2019, and SOLO EV, LLC from the date of its incorporation on November 22, 2019. 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 estimated recoverable amount of goodwill, intangible assets and other long-lived assets, the useful lives of plant and equipment, fair value measurements for financial instruments and share-based payments, and the recoverability and measurement of deferred tax assets. The Covid-19 outbreak brings significant uncertainty as to the potential impact on our operations, supply chains for parts and sales channels for our products, and on the global economy as a whole. It is currently not possible to predict how long the pandemic will last or the time that it will take for economic activity to return to prior levels. Therefore, the Company has not changed any estimates and assumptions in the preparation of the financial statements. 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 areas that require judgment in the Company has consolidated financial statements include: - - - Leases i. As a lessee The Company assesses whether a contract is or contains a lease at the inception of the contract. Leases are recognized as a right-of-use asset and corresponding lease liability at the lease commencement date. The lease liability is measured at the present value of the future fixed payments and variable lease payments that depend on an index or rate over the lease term, less any lease incentives receivable, discounted using the lessee’s incremental borrowing rate, unless the implicit interest rate in the lease can be easily determined. Lease liabilities are subsequently measured at amortized cost using the effective interest rate method. Lease terms applied are the contractual non-cancellable periods of the lease, plus periods covered by renewal or termination options, if the Company is reasonably certain to exercise those options. Lease liabilities are remeasured (with a corresponding adjustment to the right-of-use asset) when there is a change in the lease term, a change in the future lease payments resulting from a change in an index or rate used to determine those payments, or when the lease contract is modified and the lease modification is not accounted for as a separate lease. The right-of-use assets include the initial measurement of the corresponding lease liabilities, lease payments at or before the commencement date, any initial direct costs, less any lease incentives received before the commencement date. The right-of-use assets are subsequently measured at cost and are depreciated on a straight-line basis from the date the underlying asset is available for use over the lease term. The Company has elected not to recognise right-of-use assets and lease liabilities for leases of low value assets and short-term leases. The Company recognizes the lease payments associated with these leases as an expense on a straight line basis over the lease term. ii. As a lessor When the Company acts as an intermediate lessor, it determines at lease inception whether each lease is a finance lease or an operating lease and accounts for its interest in the head lease and the sublease separately. It assesses the lease classification of a sublease with reference to the right-of-use asset arising from the head lease, not with reference to the underlying asset. If a head lease is a short-term lease to which the Company applies the exemption described above, then it classifies the sublease as an operating lease. |
Cash and cash equivalents
Cash and cash equivalents | 3 Months Ended |
Mar. 31, 2020 | |
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: March 31, December 31, 2020 2019 Cash $ 1,884,429 $ 2,670,877 Cash equivalent 5,650,156 8,424,971 $ 7,534,585 $ 11,095,848 |
Receivables
Receivables | 3 Months Ended |
Mar. 31, 2020 | |
Receivables | |
Receivables | 4. March 31, December 31, 2020 2019 Trade receivable $ 12,331 $ 14,986 GST receivable 46,470 47,428 SR&ED tax credits receivable — 249,111 Other receivables 153,630 129,405 $ 212,431 $ 440,930 |
Plant and equipment
Plant and equipment | 3 Months Ended |
Mar. 31, 2020 | |
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: December 31, 2018 494,487 133,403 388,049 384,341 — 4,549,948 5,950,228 Additions 73,691 139,863 — 129,327 — 3,310,971 3,653,852 Adoption of IFRS 16 — — — — 2,061,469 — 2,061,469 Disposals — (2,150) — — — — (2,150) December 31, 2019 568,178 271,116 388,049 513,668 2,061,469 7,860,919 11,663,399 Additions 31,574 22,017 — 40,273 — 58,602 152,466 Disposals — — (13,884) (36,110) — — (49,994) Lease termination and derecognition 1,2 — — — — (463,879) — (463,879) March 31, 2020 599,752 293,133 374,165 517,831 1,597,590 7,919,521 11,301,992 Amortization: At December 31, 2018 230,798 65,689 215,251 114,724 — — 626,462 Additions 77,975 65,600 117,326 121,951 664,797 — 1,047,649 Disposals — (1,254) — — — — (1,254) December 31, 2019 308,773 130,035 332,577 236,675 664,797 — 1,672,857 Additions 23,331 19,863 15,374 47,912 162,850 — 269,330 Disposals — — (9,659) (29,430) (260,443) — (39,089) Lease termination and derecognition 1,2 — — — — (260,443) — (260,443) March 31, 2020 332,104 149,898 338,292 255,157 567,204 — 1,642,655 Net book value: At December 31, 2019 $ 259,405 $ 141,081 $ 55,472 $ 276,993 $ 1,396,672 $ 7,860,919 $ 9,990,542 At March 31, 2020 $ 267,648 $ 143,235 $ 35,873 $ 262,674 $ 1,030,386 $ 7,919,521 $ 9,659,337 1 The Company entered into sublease agreement for the office space in Los Angeles, United States with effect from February 1, 2020. As a result of the sublease, the Company derecognized the right-of-use asset relating to the head lease with cost of $319,365 and accumulated amortization of $161,565 (See Note 6 for further information on the net investment in sublease). 2 The Company terminated one of its warehouse lease on January 31, 2020. As a result of the termination, the Company derecognized the right-of-use asset of the warehouse with cost of $144,514 and accumulated amortization of $98,878 (See Note 9 for further information on the termination of the lease) On September 29, 2017, the Company entered into a manufacturing agreement with Chongqing Zongshen Automobile Co., Ltd. (“Zongshen”). Under the agreement, the Company agrees 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 ¥38 million ($7.5 million) as at March 31, 2020, 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. At March 31, 2020, the Company has completed the prototype tooling and molds with actual cost of CNY ¥10.1 million ($2 million), as assessed by the Company, the prototype tooling and molds can be adapted for use in mass production. The Company had paid 90% of prototype tooling and molds and 82% of the mass production tooling and molds. Depreciation on the production tooling and molds is charged on a per unit produced basis. No depreciation on the production tooling and molds is charged for year ended March 31, 2020 since no units had been produced using the production tooling and molds. 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. |
Net investment in sublease
Net investment in sublease | 3 Months Ended |
Mar. 31, 2020 | |
Net investment in sublease | |
Net investment in sublease | 6. The Company entered into an agreement to sublease the office space in Los Angeles, United States with effect from February 1, 2020. The Company has classified the sublease as a finance lease as the term of the sublease is for the major part of the economic life of the right-of-use asset arising from the head lease. At the commencement date of the sublease, the Company derecognized the right-of-use asset relating to the head lease that it transferred to the sub-lessee and recognized the net investment in the sub-lease. The term of the sublease expires on August 21, 2021. As at March 31, 2020, the contractual undiscounted cash flows related to sublease were as follows: Future Present value minimum of minimum lease lease payments Interest payments receivable income receivable Less than one year $ 169,505 $ 15,366 $ 154,139 Between one and five years 70,627 1,732 68,895 Net investment in sublease $ 240,132 $ 17,098 $ 223,034 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 3 Months Ended |
Mar. 31, 2020 | |
Goodwill and Intangible Assets | |
Goodwill and Intangible Assets | 7. March 31, December 31, 2020 2019 Identifiable intangibles on acquisition of Intermeccanica $ 522,817 $ 524,067 Goodwill on acquisition of Intermeccanica 699,844 699,844 Other intangibles 15,220 15,220 $ 1,237,881 $ 1,239,131 |
Trade payables and accrued liab
Trade payables and accrued liabilities | 3 Months Ended |
Mar. 31, 2020 | |
Trade payables and accrued liabilities | |
Trade payables and accrued liabilities | 8. March 31, December 31, 2020 2019 Trade payables $ 1,504,705 $ 693,502 Due to related parties (Note 17) 203,895 275,512 Accrued liabilities 385,177 1,159,212 $ 2,093,777 $ 2,128,226 |
Lease liabilities
Lease liabilities | 3 Months Ended |
Mar. 31, 2020 | |
Lease liabilities. | |
Lease liabilities | 9. Lease obligations relate to the Company’s rent of office space and warehouse spaces. The term of the lease related to office space expires on November 1, 2020 and the term of leases related to warehouse spaces expire on August 31, 2021 and August 1, 2022 with the Company holding an option to renew one of the warehouse leases for a further five years. The Company terminated one of its warehouse leases on January 31, 2020 without penalty for termination and derecognized lease liability and right-of-use asset of $47,238 and $45,636 respectively, on the effective date of termination. The Company incurred $33,202 (March 31, 2019 – Nil) lease expenses for the three months ended March 31, 2020 for short-term lease and low-value lease which are not included in the measurement of lease liabilities. The following tables reconciles the change in the lease liability and discloses a maturity analysis of the lease liability for the period ended March 31, 2020: Balance as at January 1, 2020 $ 1,463,676 Lease termination (47,238) Accretion of lease liability 29,666 Repayment of principal and interest (116,968) Balance as at March 31, 2020 $ 1,329,136 Present value of Future minimum minimum lease lease payments Interest payments Less than one year $ 669,350 $ 87,816 $ 581,534 Between one and five years 634,171 115,845 518,326 More than five years 249,215 19,939 229,276 $ 1,552,736 $ 223,600 1,329,136 Current portion of lease liabilities 581,534 Non-current portion of lease liabilities $ 747,602 |
Derivative liability
Derivative liability | 3 Months Ended |
Mar. 31, 2020 | |
Derivative liability | |
Derivative liability | 10. 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 derivative 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 (See Note 11 for further information on warrants issued and outstanding). A reconciliation of the changes in fair values of the derivative liability is below: March 31, December 31, 2020 2019 Balance, beginning $ 7,072,134 $ 4,752,875 Warrants issued — — Warrants exercised — (607,133) Changes in fair value of derivative liabilities (4,002,122) 2,926,392 Balance, ending $ 3,070,012 $ 7,072,134 The fair value of the transferrable warrants was calculated using the warrant price of USD $0.50 at issuance and USD $0.28 at March 31, 2020 as quoted on the NASDAQ exchange. |
Share capital
Share capital | 3 Months Ended |
Mar. 31, 2020 | |
Share capital | |
Share capital | 11. Authorized share capital Unlimited number of common shares without par value. At March 31, 2020, the Company had 37,056,874 issued and outstanding common shares (December 31, 2019 – 37,049,374). On March 27, 2020, the Company contracted with Stifel, Nicolaus & Company, Incorporated and Roth Capital Partners, LLC (each, an “Agent”, and collectively, the “Agents”) to sell common shares, no par value per common share, of the Company (the “Shares”) having an aggregate offering price of up to US$30,000,000 through the Agents (the “Sales Agreement). In accordance with the terms of the Sales Agreement, the Company may offer and sell Shares from time to time through the Agent selected by the Company (the “Designated Agent”), acting as sales agent or, with consent of the Company, as principal. The shares may be offered and sold by any method permitted by law deemed to be an “at the market” (“ATM”) offering as defined in Rule 415 promulgated under the Securities Act, including sales made directly on or through the Nasdaq Capital Market (“Nasdaq”) or on any other existing trading market for the Shares, and, if expressly authorized by the Company, in negotiated transactions. During the three months ended March 31, 2020, the Company issued 7,500 common shares for the ATM offering under the Sales Agreement for gross proceeds of $11,158. Share issue costs related to the ATM offering are $73,330. Basic and fully diluted loss per share The calculation of basic and fully diluted loss per share for the three months ended March 31, 2020 was based on the net loss attributable to common shareholders of $1,908,181 (March 31, 2019 - $20,629,865) and the weighted average number of common shares outstanding of 37,049,539 (March 31, 2019 ‑ 33,044,040). 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 unless specific exercise extension approved by the Board. Options granted vest based on terms and conditions set up in the option agreements. On exercise, each option allows the holder to purchase one common share of the Company. The changes in options during the three months ended March 31, 2020 are as follows: March 31, 2020 Number of options Weighted average exercise price Options outstanding, beginning 12,908,315 $ 2.07 Options granted — — Options exercised — — Options expired and forfeited (57,398) 3.06 Options cancelled — — Options outstanding, ending 12,850,917 $ 2.06 Details of options outstanding as at March 31, 2020 are as follows: Weighted average Number of options Number of options Exercise price contractual life outstanding exercisable $ 0.30 2.20 years 2,045,455 2,045,455 $ 0.30 2.37 years 229,545 229,545 $ 0.80 2.69 years 608,513 608,513 $ 0.80 2.93 years 12,500 12,500 $ 2.00 3.22 years 12,500 11,979 $ 2.00 3.88 years 344,576 328,363 $ 2.00 4.36 years 50,000 33,336 $ 9.60 USD 4.77 years 182,494 116,794 $ 6.18 USD 5.36 years 175,000 131,254 $ 1.53 USD 3.64 years 120,000 120,000 $ 5.00 USD 3.67 years 352,834 352,834 $ 3.40 USD 5.97 years 1,228,182 1,228,182 $ 2.62 USD 2.24 years 700,000 — $ 2.45 USD 6.35 years 1,250,000 833,334 $ 2.53 USD 6.36 years 144,318 100,372 $ 1.80 USD 6.55 years 120,000 50,000 $ 1.91 USD 6.69 years 5,275,000 913,030 12,850,917 7,115,491 The weighted average grant date fair value of options granted during the three months ended March 31, 2020 was Nil (March 31, 2019- $2.21). During the three months ended March 31, 2020, the Company recognized stock-based compensation expense of $2,534,558 (March 31, 2019 - $1,999,992). Warrants On exercise, each warrant allows the holder to purchase one common share of the Company. The changes in warrants during the three months ended March 31, 2020 are as follows: March 31, 2020 December 31, 2019 Number of Weighted average Number of Weighted average warrants exercise price warrants exercise price Warrants outstanding, beginning 20,603,396 $ 4.64 22,369,718 $ 5.03 Warrants issued — — — — Warrants exercised — — (1,116,322) 3.26 Warrants expired — — (650,000) 19.93 Warrants outstanding, ending 20,603,396 $ 4.64 20,603,396 $ 4.64 At March 31, 2020, all warrants outstanding were exercisable. Details of warrants outstanding as at March 31, 2020 are as follows: Weighted average Number of warrants Exercise Price contractual life outstanding Non-Transferable Warrants $0.80 CAD - $16.00 CAD 1.56 years 11,010,059 $2.00 USD - $24.00 USD 3.90 years 5,091,969 Transferable Warrants $4.25 USD 3.36 years 4,501,368 Warrants outstanding ending 2.53 years 20,603,396 |
Share Based Reserves
Share Based Reserves | 3 Months Ended |
Mar. 31, 2020 | |
Share Based Reserves | |
Share Based Reserves | 12. The share-based payment reserve records items that 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 | 3 Months Ended |
Mar. 31, 2020 | |
General and administrative expenses | |
General and administrative expenses | 13. March 31, 2020 March 31, 2019 Rent $ 117,246 $ 121,875 Office expenses 523,341 356,544 Legal and professional 469,455 505,522 Consulting fees 396,518 436,577 Investor relations 142,361 146,531 Salaries 562,899 345,626 $ 2,211,820 $ 1,912,675 |
Research and development expens
Research and development expenses | 3 Months Ended |
Mar. 31, 2020 | |
Research and development expenses | |
Research and development expenses | 14. March 31, 2020 March 31, 2019 Labour $ 1,234,544 $ 1,190,030 Materials 297,002 453,525 $ 1,531,546 $ 1,643,555 |
Sales and marketing expenses
Sales and marketing expenses | 3 Months Ended |
Mar. 31, 2020 | |
Sales and marketing expenses | |
Sales and marketing expenses | 15. March 31, 2020 March 31, 2019 Consulting $ 100,728 $ 126,853 Marketing 48,146 117,382 Salaries 201,353 127,765 $ 350,227 $ 372,000 |
Segmented information
Segmented information | 3 Months Ended |
Mar. 31, 2020 | |
Segmented information | |
Segmented information | 16. 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 March 31, 2020 Three Months Ended March 31, 2019 Custom Built Custom Built Electric Vehicles Vehicles Electric Vehicles Vehicles Revenue $ — $ 116,813 $ — $ 101,404 Gross profit/(loss) — (50,282) — 5,252 Operating expenses 6,797,861 63,919 6,159,225 112,520 Other items (4,996,977) 23,970 14,402,903 3,225 Income tax/(recovery) 1,076 (31,950) — (42,756) Net loss 1,801,960 106,221 20,562,128 67,737 Inventory $ 308,861 $ 463,344 $ 632,582 $ 229,843 Plant and equipment 9,264,090 395,247 6,980,275 497,123 |
Related party transactions
Related party transactions | 3 Months Ended |
Mar. 31, 2020 | |
Related party transactions | |
Related party transactions | 17. Related party balances The following amounts are due to related parties: March 31, December 31, 2020 2019 Shareholder loan $ 1,038 $ 2,076 Due to related parties (Note 8) 203,895 275,512 $ 204,933 $ 277,588 These amounts are unsecured, non-interest bearing and have no fixed terms of repayment. Key management personnel compensation Three months ended March 31, 2020 March 31, 2019 Consulting fees $ 62,502 $ 118,398 Salary 300,868 144,000 Directors fees 140,830 82,549 Stock-based compensation 2,459,766 1,647,520 $ 2,963,966 $ 1,992,467 |
Financial instruments and finan
Financial instruments and financial risk management | 3 Months Ended |
Mar. 31, 2020 | |
Financial instruments and financial risk management | |
Financial instruments and financial risk management | 18. 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 refundable government goods and services taxes and interest receivable from major financial institutions with high credit rating. 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, primarily 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 March 31, 2020 and December 31, 2019: Between one More than At March 31, 2020 Within one year and five years five years Trade payables $ 1,504,705 — — Accrued liabilities 385,178 — — Due to related parties 203,895 — — Shareholder loan 1,038 — — $ 2,094,816 $ — $ — Between one More than At December 31, 2019 Within one year and five years five years Trade payables $ 693,502 — — Accrued liabilities 1,159,212 — — Due to related parties 275,512 — — Shareholder loan 2,076 — — $ 2,130,302 $ — $ — See Note 9 for information on maturity 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: March 31, December 31, 2020 2019 Cash and cash equivalents $ 6,600,785 $ 10,555,007 Restricted cash 89,343 81,981 Receivables 11,304 192,998 Trade payables and accrued liabilities (475,332) (105,896) $ 6,226,100 $ 10,724,090 Based on the above net exposures, as at March 31, 2020, a 10% change in the US dollars to Canadian dollar exchange rate would impact the Company’s net loss by $622,610 (2019 - $1,072,409). 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 $56,502 for the three months ended March 31, 2020 (March 31, 2019 - $268,926). Classification of financial instruments Financial assets included in the consolidated statements of financial position are as follows: March 31, December 31, 2020 2019 Amortized cost: Cash and cash equivalents $ 7,534,585 $ 11,095,848 Restricted cash 191,675 184,314 Receivables 165,961 144,391 $ 7,892,221 $ 11,424,553 Financial liabilities included in the consolidated statements of financial position are as follows: March 31, December 31, 2020 2019 Non-derivative financial liabilities: Trade payable and accrued liabilities $ 2,093,777 $ 2,128,226 Shareholder loan 1,038 2,076 Derivative financial liabilities: Derivative liability 3,070,012 7,072,134 $ 5,164,827 $ 9,202,436 Fair value The fair value of the Company’s financial assets and liabilities, other than the derivative liability which is measured at fair value, 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 March 31, 2020 consisted of the derivative liability, which includes transferrable warrants and non-transferrable warrants. Transferrable warrants are measured using level 1 inputs and non-transferrable warrants are measured using level 2 inputs. The fair value of the derivative liability relating to the transferrable warrants was calculated using the quoted market price on the NASDAQ exchange. 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 of comparable companies as an estimate of future volatility. At March 31, 2020, if the volatility used was increased by 10% the impact would be an increase to the derivative liability of $319,343 (2019 - $540,285) with a corresponding increase in comprehensive loss. |
Capital management
Capital management | 3 Months Ended |
Mar. 31, 2020 | |
Capital management | |
Capital management | 19. 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 three months ended March 31, 2020. The Company is not subject to any externally imposed capital requirements. |
Subsequent event
Subsequent event | 3 Months Ended |
Mar. 31, 2020 | |
Subsequent event | |
Subsequent event | 20. From April 1, 2020 to the reporting date, the Company has issued 3,464,092 common shares for the ATM offering under the Sales Agreement (Note 11) for gross proceeds of US$3,561,304. Share issue costs related to the ATM offering are US$ 106,918. |
Significant accounting polici_2
Significant accounting policies and basis of preparation (Policies) | 3 Months Ended |
Mar. 31, 2020 | |
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”). These interim condensed consolidated financial statements are prepared in accordance with International Accounting Standards (“IAS”) 34 – Interim Financial Reporting on a basis consistent with those followed in the most recent annual consolidated financial statements for the year ended December 31, 2019. These interim condensed consolidated financial statements do not include all of the information required for full annual financial statements and should be read in conjunction with the Company’s audited consolidated financial statements for the year ended December 31, 2019. |
Basis of preparation | Basis of preparation The consolidated financial statements of the Company have been prepared on an accrual basis and are based on historical costs except for derivative liabilities which are measured at fair value. 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., Intermeccanica from the date of its acquisition on October 18, 2017, EMV Automotive Technology (Chongqing) Inc. from the date of its incorporation on October 15, 2019, and SOLO EV, LLC from the date of its incorporation on November 22, 2019. 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 estimated recoverable amount of goodwill, intangible assets and other long-lived assets, the useful lives of plant and equipment, fair value measurements for financial instruments and share-based payments, and the recoverability and measurement of deferred tax assets. The Covid-19 outbreak brings significant uncertainty as to the potential impact on our operations, supply chains for parts and sales channels for our products, and on the global economy as a whole. It is currently not possible to predict how long the pandemic will last or the time that it will take for economic activity to return to prior levels. Therefore, the Company has not changed any estimates and assumptions in the preparation of the financial statements. |
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 areas that require judgment in the Company has consolidated financial statements include: - - - |
Leases | Leases i. As a lessee The Company assesses whether a contract is or contains a lease at the inception of the contract. Leases are recognized as a right-of-use asset and corresponding lease liability at the lease commencement date. The lease liability is measured at the present value of the future fixed payments and variable lease payments that depend on an index or rate over the lease term, less any lease incentives receivable, discounted using the lessee’s incremental borrowing rate, unless the implicit interest rate in the lease can be easily determined. Lease liabilities are subsequently measured at amortized cost using the effective interest rate method. Lease terms applied are the contractual non-cancellable periods of the lease, plus periods covered by renewal or termination options, if the Company is reasonably certain to exercise those options. Lease liabilities are remeasured (with a corresponding adjustment to the right-of-use asset) when there is a change in the lease term, a change in the future lease payments resulting from a change in an index or rate used to determine those payments, or when the lease contract is modified and the lease modification is not accounted for as a separate lease. The right-of-use assets include the initial measurement of the corresponding lease liabilities, lease payments at or before the commencement date, any initial direct costs, less any lease incentives received before the commencement date. The right-of-use assets are subsequently measured at cost and are depreciated on a straight-line basis from the date the underlying asset is available for use over the lease term. The Company has elected not to recognise right-of-use assets and lease liabilities for leases of low value assets and short-term leases. The Company recognizes the lease payments associated with these leases as an expense on a straight line basis over the lease term. ii. As a lessor When the Company acts as an intermediate lessor, it determines at lease inception whether each lease is a finance lease or an operating lease and accounts for its interest in the head lease and the sublease separately. It assesses the lease classification of a sublease with reference to the right-of-use asset arising from the head lease, not with reference to the underlying asset. If a head lease is a short-term lease to which the Company applies the exemption described above, then it classifies the sublease as an operating lease. |
Cash and cash equivalents (Tabl
Cash and cash equivalents (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Cash and cash equivalents | |
Schedule of cash and cash equivalents | March 31, December 31, 2020 2019 Cash $ 1,884,429 $ 2,670,877 Cash equivalent 5,650,156 8,424,971 $ 7,534,585 $ 11,095,848 |
Receivables (Tables)
Receivables (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Receivables | |
Schedule of receivables | March 31, December 31, 2020 2019 Trade receivable $ 12,331 $ 14,986 GST receivable 46,470 47,428 SR&ED tax credits receivable — 249,111 Other receivables 153,630 129,405 $ 212,431 $ 440,930 |
Plant and equipment (Tables)
Plant and equipment (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
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: December 31, 2018 494,487 133,403 388,049 384,341 — 4,549,948 5,950,228 Additions 73,691 139,863 — 129,327 — 3,310,971 3,653,852 Adoption of IFRS 16 — — — — 2,061,469 — 2,061,469 Disposals — (2,150) — — — — (2,150) December 31, 2019 568,178 271,116 388,049 513,668 2,061,469 7,860,919 11,663,399 Additions 31,574 22,017 — 40,273 — 58,602 152,466 Disposals — — (13,884) (36,110) — — (49,994) Lease termination and derecognition 1,2 — — — — (463,879) — (463,879) March 31, 2020 599,752 293,133 374,165 517,831 1,597,590 7,919,521 11,301,992 Amortization: At December 31, 2018 230,798 65,689 215,251 114,724 — — 626,462 Additions 77,975 65,600 117,326 121,951 664,797 — 1,047,649 Disposals — (1,254) — — — — (1,254) December 31, 2019 308,773 130,035 332,577 236,675 664,797 — 1,672,857 Additions 23,331 19,863 15,374 47,912 162,850 — 269,330 Disposals — — (9,659) (29,430) (260,443) — (39,089) Lease termination and derecognition 1,2 — — — — (260,443) — (260,443) March 31, 2020 332,104 149,898 338,292 255,157 567,204 — 1,642,655 Net book value: At December 31, 2019 $ 259,405 $ 141,081 $ 55,472 $ 276,993 $ 1,396,672 $ 7,860,919 $ 9,990,542 At March 31, 2020 $ 267,648 $ 143,235 $ 35,873 $ 262,674 $ 1,030,386 $ 7,919,521 $ 9,659,337 |
Net investment in sublease (Tab
Net investment in sublease (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Net investment in sublease | |
Schedule of contractual undiscounted cash flows related to sublease | As at March 31, 2020, the contractual undiscounted cash flows related to sublease were as follows: Future Present value minimum of minimum lease lease payments Interest payments receivable income receivable Less than one year $ 169,505 $ 15,366 $ 154,139 Between one and five years 70,627 1,732 68,895 Net investment in sublease $ 240,132 $ 17,098 $ 223,034 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Goodwill and Intangible Assets | |
Schedule of goodwill and intangible assets | March 31, December 31, 2020 2019 Identifiable intangibles on acquisition of Intermeccanica $ 522,817 $ 524,067 Goodwill on acquisition of Intermeccanica 699,844 699,844 Other intangibles 15,220 15,220 $ 1,237,881 $ 1,239,131 |
Trade payables and accrued li_2
Trade payables and accrued liabilities (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Trade payables and accrued liabilities | |
Schedule of trade payables and accrued liabilities | March 31, December 31, 2020 2019 Trade payables $ 1,504,705 $ 693,502 Due to related parties (Note 17) 203,895 275,512 Accrued liabilities 385,177 1,159,212 $ 2,093,777 $ 2,128,226 |
Lease liabilities (Tables)
Lease liabilities (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Lease liabilities. | |
Summary that reconciles the change in the lease liability and discloses a maturity analysis of the lease liability | Balance as at January 1, 2020 $ 1,463,676 Lease termination (47,238) Accretion of lease liability 29,666 Repayment of principal and interest (116,968) Balance as at March 31, 2020 $ 1,329,136 |
Schedule of the contractual undiscounted cash flows related to leases | Present value of Future minimum minimum lease lease payments Interest payments Less than one year $ 669,350 $ 87,816 $ 581,534 Between one and five years 634,171 115,845 518,326 More than five years 249,215 19,939 229,276 $ 1,552,736 $ 223,600 1,329,136 Current portion of lease liabilities 581,534 Non-current portion of lease liabilities $ 747,602 |
Derivative liability (Tables)
Derivative liability (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Derivative liability | |
Schedule of changes in fair values of the derivative liability | March 31, December 31, 2020 2019 Balance, beginning $ 7,072,134 $ 4,752,875 Warrants issued — — Warrants exercised — (607,133) Changes in fair value of derivative liabilities (4,002,122) 2,926,392 Balance, ending $ 3,070,012 $ 7,072,134 |
Share capital (Tables)
Share capital (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Share capital | |
Schedule of changes in options | March 31, 2020 Number of options Weighted average exercise price Options outstanding, beginning 12,908,315 $ 2.07 Options granted — — Options exercised — — Options expired and forfeited (57,398) 3.06 Options cancelled — — Options outstanding, ending 12,850,917 $ 2.06 |
Schedule of details of options outstanding | Weighted average Number of options Number of options Exercise price contractual life outstanding exercisable $ 0.30 2.20 years 2,045,455 2,045,455 $ 0.30 2.37 years 229,545 229,545 $ 0.80 2.69 years 608,513 608,513 $ 0.80 2.93 years 12,500 12,500 $ 2.00 3.22 years 12,500 11,979 $ 2.00 3.88 years 344,576 328,363 $ 2.00 4.36 years 50,000 33,336 $ 9.60 USD 4.77 years 182,494 116,794 $ 6.18 USD 5.36 years 175,000 131,254 $ 1.53 USD 3.64 years 120,000 120,000 $ 5.00 USD 3.67 years 352,834 352,834 $ 3.40 USD 5.97 years 1,228,182 1,228,182 $ 2.62 USD 2.24 years 700,000 — $ 2.45 USD 6.35 years 1,250,000 833,334 $ 2.53 USD 6.36 years 144,318 100,372 $ 1.80 USD 6.55 years 120,000 50,000 $ 1.91 USD 6.69 years 5,275,000 913,030 12,850,917 7,115,491 |
Schedule of changes in warrants | March 31, 2020 December 31, 2019 Number of Weighted average Number of Weighted average warrants exercise price warrants exercise price Warrants outstanding, beginning 20,603,396 $ 4.64 22,369,718 $ 5.03 Warrants issued — — — — Warrants exercised — — (1,116,322) 3.26 Warrants expired — — (650,000) 19.93 Warrants outstanding, ending 20,603,396 $ 4.64 20,603,396 $ 4.64 |
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 1.56 years 11,010,059 $2.00 USD - $24.00 USD 3.90 years 5,091,969 Transferable Warrants $4.25 USD 3.36 years 4,501,368 Warrants outstanding ending 2.53 years 20,603,396 |
General and administrative ex_2
General and administrative expenses (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
General and administrative expenses | |
Schedule of general and administrative expenses | March 31, 2020 March 31, 2019 Rent $ 117,246 $ 121,875 Office expenses 523,341 356,544 Legal and professional 469,455 505,522 Consulting fees 396,518 436,577 Investor relations 142,361 146,531 Salaries 562,899 345,626 $ 2,211,820 $ 1,912,675 |
Research and development expe_2
Research and development expenses (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Research and development expenses | |
Schedule of research and development expense | March 31, 2020 March 31, 2019 Labour $ 1,234,544 $ 1,190,030 Materials 297,002 453,525 $ 1,531,546 $ 1,643,555 |
Sales and marketing expenses (T
Sales and marketing expenses (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Sales and marketing expenses | |
Schedule of sales and marketing expenses | March 31, 2020 March 31, 2019 Consulting $ 100,728 $ 126,853 Marketing 48,146 117,382 Salaries 201,353 127,765 $ 350,227 $ 372,000 |
Segmented information (Tables)
Segmented information (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Segmented information | |
Schedule of segmented information | Three Months Ended March 31, 2020 Three Months Ended March 31, 2019 Custom Built Custom Built Electric Vehicles Vehicles Electric Vehicles Vehicles Revenue $ — $ 116,813 $ — $ 101,404 Gross profit/(loss) — (50,282) — 5,252 Operating expenses 6,797,861 63,919 6,159,225 112,520 Other items (4,996,977) 23,970 14,402,903 3,225 Income tax/(recovery) 1,076 (31,950) — (42,756) Net loss 1,801,960 106,221 20,562,128 67,737 Inventory $ 308,861 $ 463,344 $ 632,582 $ 229,843 Plant and equipment 9,264,090 395,247 6,980,275 497,123 |
Related party transactions (Tab
Related party transactions (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Related party transactions | |
Schedule of related party balances | March 31, December 31, 2020 2019 Shareholder loan $ 1,038 $ 2,076 Due to related parties (Note 8) 203,895 275,512 $ 204,933 $ 277,588 |
Schedule of key management personnel compensation | Three months ended March 31, 2020 March 31, 2019 Consulting fees $ 62,502 $ 118,398 Salary 300,868 144,000 Directors fees 140,830 82,549 Stock-based compensation 2,459,766 1,647,520 $ 2,963,966 $ 1,992,467 |
Financial instruments and fin_2
Financial instruments and financial risk management (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Financial instruments and financial risk management | |
Schedule of contractual maturities of non-derivative financial liabilities | Between one More than At March 31, 2020 Within one year and five years five years Trade payables $ 1,504,705 — — Accrued liabilities 385,178 — — Due to related parties 203,895 — — Shareholder loan 1,038 — — $ 2,094,816 $ — $ — Between one More than At December 31, 2019 Within one year and five years five years Trade payables $ 693,502 — — Accrued liabilities 1,159,212 — — Due to related parties 275,512 — — Shareholder loan 2,076 — — $ 2,130,302 $ — $ — |
Schedule of financial assets and liabilities that are denominated in US dollars | March 31, December 31, 2020 2019 Cash and cash equivalents $ 6,600,785 $ 10,555,007 Restricted cash 89,343 81,981 Receivables 11,304 192,998 Trade payables and accrued liabilities (475,332) (105,896) $ 6,226,100 $ 10,724,090 |
Schedule of classification of financial instruments | March 31, December 31, 2020 2019 Amortized cost: Cash and cash equivalents $ 7,534,585 $ 11,095,848 Restricted cash 191,675 184,314 Receivables 165,961 144,391 $ 7,892,221 $ 11,424,553 March 31, December 31, 2020 2019 Non-derivative financial liabilities: Trade payable and accrued liabilities $ 2,093,777 $ 2,128,226 Shareholder loan 1,038 2,076 Derivative financial liabilities: Derivative liability 3,070,012 7,072,134 $ 5,164,827 $ 9,202,436 |
Cash and cash equivalents (Deta
Cash and cash equivalents (Details) - CAD ($) | Mar. 31, 2020 | Dec. 31, 2019 | Mar. 31, 2019 | Dec. 31, 2018 |
Cash and cash equivalents | ||||
Cash | $ 1,884,429 | $ 2,670,877 | ||
Cash equivalent | 5,650,156 | 8,424,971 | ||
Cash and cash equivalents | $ 7,534,585 | $ 11,095,848 | $ 30,696,299 | $ 18,926,933 |
Receivables (Details)
Receivables (Details) - CAD ($) | Mar. 31, 2020 | Dec. 31, 2019 |
Disclosure of detailed information about financial instruments [line items] | ||
Receivables | $ 212,431 | $ 440,930 |
Trade receivable | ||
Disclosure of detailed information about financial instruments [line items] | ||
Receivables | 12,331 | 14,986 |
GST receivable | ||
Disclosure of detailed information about financial instruments [line items] | ||
Receivables | 46,470 | 47,428 |
SR&ED tax credits receivable | ||
Disclosure of detailed information about financial instruments [line items] | ||
Receivables | 249,111 | |
Other receivable | ||
Disclosure of detailed information about financial instruments [line items] | ||
Receivables | $ 153,630 | $ 129,405 |
Plant and equipment (Details)
Plant and equipment (Details) - CAD ($) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2020 | Dec. 31, 2019 | |
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning balance | $ 9,990,542 | |
Ending balance | 9,659,337 | $ 9,990,542 |
Cost | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning balance | 11,663,399 | 5,950,228 |
Additions | 152,466 | 3,653,852 |
Adoption of IFRS 16 | 2,061,469 | |
Disposals | (49,994) | (2,150) |
Lease termination and derecognition | (463,879) | |
Ending balance | 11,301,992 | 11,663,399 |
Amortization | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning balance | 1,672,857 | 626,462 |
Additions | 269,330 | 1,047,649 |
Disposals | (39,089) | (1,254) |
Lease termination and derecognition | (260,443) | |
Ending balance | 1,642,655 | 1,672,857 |
Furniture and equipment | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning balance | 259,405 | |
Ending balance | 267,648 | 259,405 |
Furniture and equipment | Cost | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning balance | 568,178 | 494,487 |
Additions | 31,574 | 73,691 |
Ending balance | 599,752 | 568,178 |
Furniture and equipment | Amortization | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning balance | 308,773 | 230,798 |
Additions | 23,331 | 77,975 |
Ending balance | 332,104 | 308,773 |
Computer hardware and software | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning balance | 141,081 | |
Ending balance | 143,235 | 141,081 |
Computer hardware and software | Cost | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning balance | 271,116 | 133,403 |
Additions | 22,017 | 139,863 |
Disposals | (2,150) | |
Ending balance | 293,133 | 271,116 |
Computer hardware and software | Amortization | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning balance | 130,035 | 65,689 |
Additions | 19,863 | 65,600 |
Disposals | (1,254) | |
Ending balance | 149,898 | 130,035 |
Vehicles | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning balance | 55,472 | |
Ending balance | 35,873 | 55,472 |
Vehicles | Cost | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning balance | 388,049 | 388,049 |
Disposals | (13,884) | |
Ending balance | 374,165 | 388,049 |
Vehicles | Amortization | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning balance | 332,577 | 215,251 |
Additions | 15,374 | 117,326 |
Disposals | (9,659) | |
Ending balance | 338,292 | 332,577 |
Leasehold improvements | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning balance | 276,993 | |
Ending balance | 262,674 | 276,993 |
Leasehold improvements | Cost | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning balance | 513,668 | 384,341 |
Additions | 40,273 | 129,327 |
Disposals | (36,110) | |
Ending balance | 517,831 | 513,668 |
Leasehold improvements | Amortization | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning balance | 236,675 | 114,724 |
Additions | 47,912 | 121,951 |
Disposals | (29,430) | |
Ending balance | 255,157 | 236,675 |
Right-of-use assets | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning balance | 1,396,672 | |
Ending balance | 1,030,386 | 1,396,672 |
Right-of-use assets | Cost | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning balance | 2,061,469 | |
Adoption of IFRS 16 | 2,061,469 | |
Lease termination and derecognition | (463,879) | |
Ending balance | 1,597,590 | 2,061,469 |
Right-of-use assets | Amortization | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning balance | 664,797 | |
Additions | 162,850 | 664,797 |
Disposals | (260,443) | |
Lease termination and derecognition | (260,443) | |
Ending balance | 567,204 | 664,797 |
Production tooling and molds | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning balance | 7,860,919 | |
Ending balance | 7,919,521 | 7,860,919 |
Production tooling and molds | Cost | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning balance | 7,860,919 | 4,549,948 |
Additions | 58,602 | 3,310,971 |
Ending balance | $ 7,919,521 | $ 7,860,919 |
Plant and equipment - Aditional
Plant and equipment - Aditional information (Details) ¥ in Millions, $ in Millions | 1 Months Ended | 3 Months Ended | ||||||
Feb. 29, 2020CAD ($) | Jan. 31, 2019CAD ($) | Sep. 29, 2017USD ($) | Mar. 31, 2020CAD ($) | Oct. 16, 2017CNY (¥)shares | Oct. 16, 2017CAD ($)shares | Sep. 29, 2017CNY (¥) | Sep. 29, 2017CAD ($) | |
Disclosure of detailed information about property, plant and equipment [line items] | ||||||||
Lease derecognition | $ 144,514 | $ 319,365 | ||||||
Lease termination | $ 161,565 | $ 98,878 | ||||||
Cost | ||||||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||||||
Lease termination and derecognition | (463,879) | |||||||
Amortization | ||||||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||||||
Lease termination and derecognition | $ (260,443) | |||||||
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. At March 31, 2020, the Company has completed the prototype tooling and molds with actual cost of CNY ¥10.1 million ($2 million), as assessed by the Company, the prototype tooling and molds can be adapted for use in mass production. The Company had paid 90% of prototype tooling and molds and 82% of the mass production tooling and molds. Depreciation on the production tooling and molds is charged on a per unit produced basis. No depreciation on the production tooling and molds is charged for year ended March 31, 2020 since 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 | $ 1.8 | ¥ 9.5 | ||||||
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 | ¥ 38 | $ 7,500,000 | ||||||
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 | $ 1,800,000 | ||||||
Share pledge agreement common shares | shares | 400,000 | 400,000 |
Net investment in sublease (Det
Net investment in sublease (Details) | Mar. 31, 2020CAD ($) |
Disclosure of maturity analysis of finance lease payments receivable [line items] | |
Future minimum lease payments receivable | $ 240,132 |
Interest income | 17,098 |
Present value of minimum lease payments receivable | 223,034 |
Less than one year | |
Disclosure of maturity analysis of finance lease payments receivable [line items] | |
Future minimum lease payments receivable | 169,505 |
Interest income | 15,366 |
Present value of minimum lease payments receivable | 154,139 |
Between one and five years | |
Disclosure of maturity analysis of finance lease payments receivable [line items] | |
Future minimum lease payments receivable | 70,627 |
Interest income | 1,732 |
Present value of minimum lease payments receivable | $ 68,895 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets (Details) - CAD ($) | Mar. 31, 2020 | Dec. 31, 2019 |
Disclosure of reconciliation of changes in goodwill [line items] | ||
Goodwill and intangible assets | $ 1,237,881 | $ 1,239,131 |
Identifiable intangibles on acquisition of Intermeccanica | ||
Disclosure of reconciliation of changes in goodwill [line items] | ||
Goodwill and intangible assets | 522,817 | 524,067 |
Goodwill on acquisition of Intermeccanica | ||
Disclosure of reconciliation of changes in goodwill [line items] | ||
Goodwill and intangible assets | 699,844 | 699,844 |
Other intangibles | ||
Disclosure of reconciliation of changes in goodwill [line items] | ||
Goodwill and intangible assets | $ 15,220 | $ 15,220 |
Trade payables and accrued li_3
Trade payables and accrued liabilities (Details) - CAD ($) | Mar. 31, 2020 | Dec. 31, 2019 |
Trade payables and accrued liabilities | ||
Trade payables | $ 1,504,705 | $ 693,502 |
Due to related parties (Note 17) | 203,895 | 275,512 |
Accrued liabilities | 385,177 | 1,159,212 |
Trade payables and accrued liabilities | $ 2,093,777 | $ 2,128,226 |
Lease liabilities - change in t
Lease liabilities - change in the lease liability and discloses a maturity analysis (Details) - CAD ($) | Jan. 31, 2020 | Mar. 31, 2020 |
Lease liabilities. | ||
Balance as at begining period | $ 1,463,676 | |
Lease termination | $ 47,238 | (47,238) |
Accretion of lease liability | 29,666 | |
Repayment of principal and interest | (116,968) | |
Balance as at end period | $ 1,329,136 |
Lease liabilities (Details)
Lease liabilities (Details) - CAD ($) | 3 Months Ended | |
Mar. 31, 2020 | Dec. 31, 2019 | |
Disclosure of maturity analysis of lease payments [line items] | ||
Future minimum lease payments | $ 1,552,736 | |
Interest | 223,600 | |
Present value of minimum lease payments | 1,329,136 | |
Current portion of lease liabilities | 581,534 | $ 604,886 |
Non-current portion of lease liabilities | 747,602 | $ 858,790 |
Less than one year | ||
Disclosure of maturity analysis of lease payments [line items] | ||
Future minimum lease payments | 669,350 | |
Interest | 87,816 | |
Present value of minimum lease payments | 581,534 | |
Between one and five years | ||
Disclosure of maturity analysis of lease payments [line items] | ||
Future minimum lease payments | 634,171 | |
Interest | 115,845 | |
Present value of minimum lease payments | 518,326 | |
More than five years | ||
Disclosure of maturity analysis of lease payments [line items] | ||
Future minimum lease payments | 249,215 | |
Interest | 19,939 | |
Present value of minimum lease payments | $ 229,276 |
Lease liabilities - Additional
Lease liabilities - Additional information (Details) - CAD ($) | Jan. 31, 2020 | Mar. 31, 2020 | Mar. 31, 2019 |
Lease liabilities. | |||
Term of leases expire | 5 years | ||
Lease termination, lease liability | $ 47,238 | $ (47,238) | |
Lease termination, right of use assets | $ 45,636 | ||
Lease expenses for short-term lease and low-value lease which are not included in the measurement of lease liabilities | $ 33,202 | $ 0 |
Derivative liability - Changes
Derivative liability - Changes in fair values of the derivative liability (Details) | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2020$ / shares | Mar. 31, 2020CAD ($) | Dec. 31, 2019CAD ($) | |
Derivative liability | |||
Balance, beginning | $ 7,072,134 | $ 4,752,875 | |
Warrants issued | 0 | 0 | |
Warrants exercised | (607,133) | ||
Changes in fair value of derivative liabilities | (4,002,122) | 2,926,392 | |
Balance, ending | $ 3,070,012 | $ 7,072,134 | |
Warrants Issuance Price Per Share | $ / shares | $ 0.50 | ||
Warrants Price Per Share | $ / shares | $ 0.28 |
Share capital - Changes in opti
Share capital - Changes in options (Details) - Stock options | 3 Months Ended |
Mar. 31, 2020$ / sharesshares | |
Disclosure of classes of share capital [line items] | |
Number of options, Options outstanding, beginning | shares | 12,908,315 |
Number of options, Options expired and forfeited | shares | (57,398) |
Number of options, Options outstanding, ending | shares | 12,850,917 |
Weighted average exercise price, Options outstanding, beginning | $ / shares | $ 2.07 |
Weighted average exercise price, Options expired and forfeited | $ / shares | 3.06 |
Weighted average exercise price, Options outstanding, ending | $ / shares | $ 2.06 |
Share capital - Options outstan
Share capital - Options outstanding (Details) - Stock options | 3 Months Ended | |
Mar. 31, 2020$ / sharesshares | Mar. 31, 2020$ / sharesshares | |
Disclosure of classes of share capital [line items] | ||
Number of options outstanding | 12,850,917 | 12,850,917 |
Number of options exercisable | 7,115,491 | 7,115,491 |
Exercise price $ 0.30 | ||
Disclosure of classes of share capital [line items] | ||
Exercise price | $ / shares | $ 0.30 | |
Weighted average contractual life | 2 years 2 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 4 months 13 days | |
Number of options outstanding | 229,545 | 229,545 |
Number of options exercisable | 229,545 | 229,545 |
Exercise price $ 0.80 | ||
Disclosure of classes of share capital [line items] | ||
Exercise price | $ / shares | $ 0.80 | |
Weighted average contractual life | 2 years 8 months 9 days | |
Number of options outstanding | 608,513 | 608,513 |
Number of options exercisable | 608,513 | 608,513 |
Exercise price $ 0.80 | ||
Disclosure of classes of share capital [line items] | ||
Exercise price | $ / shares | $ 0.80 | |
Weighted average contractual life | 2 years 11 months 5 days | |
Number of options outstanding | 12,500 | 12,500 |
Number of options exercisable | 12,500 | 12,500 |
Exercise price $ 2.00 | ||
Disclosure of classes of share capital [line items] | ||
Exercise price | $ / shares | $ 2 | |
Weighted average contractual life | 3 years 2 months 19 days | |
Number of options outstanding | 12,500 | 12,500 |
Number of options exercisable | 11,979 | 11,979 |
Exercise price $ 2.00 | ||
Disclosure of classes of share capital [line items] | ||
Exercise price | $ / shares | $ 2 | |
Weighted average contractual life | 3 years 10 months 17 days | |
Number of options outstanding | 344,576 | 344,576 |
Number of options exercisable | 328,363 | 328,363 |
Exercise price $ 2.00 | ||
Disclosure of classes of share capital [line items] | ||
Exercise price | $ / shares | $ 2 | |
Weighted average contractual life | 4 years 4 months 10 days | |
Number of options outstanding | 50,000 | 50,000 |
Number of options exercisable | 33,336 | 33,336 |
Exercise price $ 9.60 USD | ||
Disclosure of classes of share capital [line items] | ||
Exercise price | $ / shares | $ 9.60 | |
Weighted average contractual life | 4 years 9 months 7 days | |
Number of options outstanding | 182,494 | 182,494 |
Number of options exercisable | 116,794 | 116,794 |
Exercise price $ 6.18 USD | ||
Disclosure of classes of share capital [line items] | ||
Exercise price | $ / shares | $ 6.18 | |
Weighted average contractual life | 5 years 4 months 10 days | |
Number of options outstanding | 175,000 | 175,000 |
Number of options exercisable | 131,254 | 131,254 |
Exercise price $ 1.53 USD | ||
Disclosure of classes of share capital [line items] | ||
Exercise price | $ / shares | $ 1.53 | |
Weighted average contractual life | 3 years 7 months 21 days | |
Number of options outstanding | 120,000 | 120,000 |
Number of options exercisable | 120,000 | 120,000 |
Exercise price $ 5.00 USD | ||
Disclosure of classes of share capital [line items] | ||
Exercise price | $ / shares | $ 5 | |
Weighted average contractual life | 3 years 8 months 1 day | |
Number of options outstanding | 352,834 | 352,834 |
Number of options exercisable | 352,834 | 352,834 |
Exercise price $ 3.40 USD | ||
Disclosure of classes of share capital [line items] | ||
Exercise price | $ / shares | $ 3.40 | |
Weighted average contractual life | 5 years 11 months 19 days | |
Number of options outstanding | 1,228,182 | 1,228,182 |
Number of options exercisable | 1,228,182 | 1,228,182 |
Exercise price $ 2.62 USD | ||
Disclosure of classes of share capital [line items] | ||
Exercise price | $ / shares | $ 2.62 | |
Weighted average contractual life | 2 years 2 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 4 months 6 days | |
Number of options outstanding | 1,250,000 | 1,250,000 |
Number of options exercisable | 833,334 | 833,334 |
Exercise Price $2.53 USD | ||
Disclosure of classes of share capital [line items] | ||
Exercise price | $ / shares | $ 2.53 | |
Weighted average contractual life | 6 years 4 months 10 days | |
Number of options outstanding | 144,318 | 144,318 |
Number of options exercisable | 100,372 | 100,372 |
Exercise Price $1.80 USD | ||
Disclosure of classes of share capital [line items] | ||
Exercise price | $ / shares | $ 1.80 | |
Weighted average contractual life | 6 years 6 months 18 days | |
Number of options outstanding | 120,000 | 120,000 |
Number of options exercisable | 50,000 | 50,000 |
Exercise Price $1.91 USD | ||
Disclosure of classes of share capital [line items] | ||
Exercise price | $ / shares | $ 1.91 | |
Number of options outstanding | 5,275,000 | 5,275,000 |
Number of options exercisable | 913,030 | 913,030 |
Share capital - The changes in
Share capital - The changes in warrants (Details) - Warrants - $ / shares | 3 Months Ended | 12 Months Ended |
Mar. 31, 2020 | Dec. 31, 2019 | |
Disclosure of classes of share capital [line items] | ||
Number of warrants, Warrants outstanding, beginning | 20,603,396 | 22,369,718 |
Number of warrants, Warrants issued | 0 | |
Number of warrants, Warrants exercised | 0 | (1,116,322) |
Number of warrants expired | 0 | (650,000) |
Number of warrants, Warrants outstanding, ending | 20,603,396 | 20,603,396 |
Weighted average exercise price, Warrants outstanding, beginning | $ 4.64 | $ 5.03 |
Weighted average exercise price, Warrants issued | 0 | 19.93 |
Weighted average exercise price, Warrants exercised | 0 | 3.26 |
Weighted average exercise price, Warrants expired | 0 | |
Weighted average exercise price, Warrants outstanding, ending | $ 4.64 | $ 4.64 |
Share capital - Warrants outsta
Share capital - Warrants outstanding (Details) | 3 Months Ended | |||
Mar. 31, 2020$ / sharesshares | Mar. 31, 2020$ / sharesshares | Dec. 31, 2019shares | Dec. 31, 2018shares | |
Warrants | ||||
Disclosure of classes of share capital [line items] | ||||
Weighted average contractual life | 2 years 6 months 11 days | |||
Number of warrants outstanding | shares | 20,603,396 | 20,603,396 | 20,603,396 | 22,369,718 |
Warrants | Non-Transferable Warrants $0.80 CAD - $16.00 CAD | ||||
Disclosure of classes of share capital [line items] | ||||
Weighted average contractual life | 1 year 6 months 22 days | |||
Number of warrants outstanding | shares | 11,010,059 | 11,010,059 | ||
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 10 months 24 days | |||
Number of warrants outstanding | shares | 5,091,969 | 5,091,969 | ||
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 4 months 10 days | |||
Number of warrants outstanding | shares | 4,501,368 | 4,501,368 | ||
Stock options | Exercise Price $1.91 USD | ||||
Disclosure of classes of share capital [line items] | ||||
Weighted average contractual life | 6 years 8 months 9 days |
Share capital - Additional Info
Share capital - Additional Information (Details) | 3 Months Ended | |||||
Mar. 31, 2020$ / sharesshares | Mar. 31, 2020CAD ($)shares | Mar. 31, 2019CAD ($)$ / sharesshares | Mar. 27, 2020USD ($) | Dec. 31, 2019shares | Dec. 31, 2018shares | |
Disclosure of classes of share capital [line items] | ||||||
Fair value of shares issued pursuant to exercise of warrants | $ 4,657,266 | |||||
Share issue related cost | $ 73,330 | |||||
Shares issued pursuant to exercise of warrants | 4,657,266 | |||||
Profit (loss) | $ (1,908,181) | $ (20,629,865) | ||||
Weighted average number of common shares outstanding | shares | 37,049,539 | 33,044,040 | ||||
Stock-based compensation expense | $ 2,534,558 | $ 1,999,992 | ||||
Share issue related cost | $ 73,330 | |||||
ConsultantMember | ||||||
Disclosure of classes of share capital [line items] | ||||||
Increase (decrease) in number of shares outstanding | shares | 7,500 | |||||
Investors[Member] | ||||||
Disclosure of classes of share capital [line items] | ||||||
Maximum aggregate offering price | $ 30,000,000 | |||||
Employee Stock Options Exercise [Member] | ||||||
Disclosure of classes of share capital [line items] | ||||||
Share issue related cost | $ 73,330 | |||||
Share issue related cost | $ 73,330 | |||||
Stock options | ||||||
Disclosure of classes of share capital [line items] | ||||||
Maximum number of common shares reserved for issuance | shares | 30,000,000 | |||||
Stock options exercisable period | 7 years | |||||
Weighted average share price, share options granted | (per share) | $ 0 | $ 2.21 | ||||
Share capital | ||||||
Disclosure of classes of share capital [line items] | ||||||
Number of shares issued | shares | 37,056,874 | 37,056,874 | 37,049,374 | |||
Number of shares outstanding | shares | 37,056,874 | 37,056,874 | 36,804,997 | 37,049,374 | 32,332,343 | |
Fair value of shares issued pursuant to exercise of warrants | $ 4,657,266 | |||||
Share issue related cost | $ 73,330 | |||||
Shares issued pursuant to exercise of warrants | $ 4,657,266 | |||||
Proceeds from issuing shares | 11,158 | |||||
Share issue related cost | $ 73,330 |
General and administrative ex_3
General and administrative expenses (Details) - CAD ($) | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
General and administrative expenses | ||
Rent | $ 117,246 | $ 121,875 |
Office expenses | 523,341 | 356,544 |
Legal and professional | 469,455 | 505,522 |
Consulting fees | 396,518 | 436,577 |
Investor relations | 142,361 | 146,531 |
Salaries | 562,899 | 345,626 |
General and administrative expenses | $ 2,211,820 | $ 1,912,675 |
Research and development expe_3
Research and development expenses (Details) - CAD ($) | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Research and development expenses | ||
Labour | $ 1,234,544 | $ 1,190,030 |
Materials | 297,002 | 453,525 |
Research and development expenses | $ 1,531,546 | $ 1,643,555 |
Sales and marketing expenses (D
Sales and marketing expenses (Details) - CAD ($) | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Sales and marketing expenses | ||
Consulting | $ 100,728 | $ 126,853 |
Marketing | 48,146 | 117,382 |
Salaries | 201,353 | 127,765 |
Total sales and marketing expenses | $ 350,227 | $ 372,000 |
Segmented information (Details)
Segmented information (Details) - CAD ($) | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Disclosure of operating segments [line items] | |||
Revenues | $ 116,813 | $ 101,404 | |
Gross profit | (50,282) | 5,252 | |
Operating expenses | 6,861,780 | 6,271,745 | |
Income tax recovery | (30,874) | (42,756) | |
Net loss | (1,908,181) | (20,629,865) | |
Inventory | 772,205 | $ 750,151 | |
Plant and equipment | 9,659,337 | $ 9,990,542 | |
Electric Vehicles | |||
Disclosure of operating segments [line items] | |||
Revenues | 0 | ||
Gross profit | 0 | ||
Operating expenses | 6,797,861 | 6,159,225 | |
Other items | (4,996,977) | 14,402,903 | |
Income tax recovery | 1,076 | 0 | |
Net loss | 1,801,960 | 20,562,128 | |
Inventory | 308,861 | 632,582 | |
Plant and equipment | 9,264,090 | 6,980,275 | |
Custom Built Vehicles | |||
Disclosure of operating segments [line items] | |||
Revenues | 116,813 | 101,404 | |
Gross profit | (50,282) | 5,252 | |
Operating expenses | 63,919 | 112,520 | |
Other items | 23,970 | 3,225 | |
Income tax recovery | (31,950) | (42,756) | |
Net loss | 106,221 | 67,737 | |
Inventory | 463,344 | 229,843 | |
Plant and equipment | $ 395,247 | $ 497,123 |
Segmented information - Additio
Segmented information - Additional Information (Details) | 3 Months Ended |
Mar. 31, 2020segment | |
Segmented information | |
Number of reportable business segments | 2 |
Related party transactions -amo
Related party transactions -amounts are due to related parties (Details) - CAD ($) | Mar. 31, 2020 | Dec. 31, 2019 |
Disclosure of transactions between related parties [line items] | ||
Amounts due to related parties | $ 204,933 | $ 277,588 |
Shareholder loan | ||
Disclosure of transactions between related parties [line items] | ||
Amounts due to related parties | 1,038 | 2,076 |
Due to related parties | ||
Disclosure of transactions between related parties [line items] | ||
Amounts due to related parties | $ 203,895 | $ 275,512 |
Related party transactions-Key
Related party transactions-Key management personnel compensation (Details) - CAD ($) | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Related party transactions | ||
Consulting fees | $ 62,502 | $ 118,398 |
Salary | 300,868 | 144,000 |
Directors fees | 140,830 | 82,549 |
Stock-based compensation | 2,459,766 | 1,647,520 |
Key management personnel compensation | $ 2,963,966 | $ 1,992,467 |
Financial instruments and fin_3
Financial instruments and financial risk management - Analysis of the contractual maturities (Details) - CAD ($) | Mar. 31, 2020 | Dec. 31, 2019 |
Less than one year | ||
Financial instruments and financial risk management | ||
Total non-derivative financial liabilities | $ 2,094,816 | $ 2,130,302 |
Between one and five years | ||
Financial instruments and financial risk management | ||
Total non-derivative financial liabilities | 0 | 0 |
More than five years | ||
Financial instruments and financial risk management | ||
Total non-derivative financial liabilities | 0 | 0 |
Trade payables | Less than one year | ||
Financial instruments and financial risk management | ||
Total non-derivative financial liabilities | 1,504,705 | 693,502 |
Trade payables | Between one and five years | ||
Financial instruments and financial risk management | ||
Total non-derivative financial liabilities | 0 | 0 |
Trade payables | More than five years | ||
Financial instruments and financial risk management | ||
Total non-derivative financial liabilities | 0 | 0 |
Accrued liabilities | Less than one year | ||
Financial instruments and financial risk management | ||
Total non-derivative financial liabilities | 385,178 | 1,159,212 |
Accrued liabilities | Between one and five years | ||
Financial instruments and financial risk management | ||
Total non-derivative financial liabilities | 0 | 0 |
Accrued liabilities | More than five years | ||
Financial instruments and financial risk management | ||
Total non-derivative financial liabilities | 0 | 0 |
Shareholder loan | Less than one year | ||
Financial instruments and financial risk management | ||
Total non-derivative financial liabilities | 1,038 | 2,076 |
Shareholder loan | Between one and five years | ||
Financial instruments and financial risk management | ||
Total non-derivative financial liabilities | 0 | 0 |
Shareholder loan | More than five years | ||
Financial instruments and financial risk management | ||
Total non-derivative financial liabilities | 0 | 0 |
Customer deposits and contract liabilities | Less than one year | ||
Financial instruments and financial risk management | ||
Total non-derivative financial liabilities | 203,895 | 275,512 |
Customer deposits and contract liabilities | Between one and five years | ||
Financial instruments and financial risk management | ||
Total non-derivative financial liabilities | 0 | 0 |
Customer deposits and contract liabilities | More than five years | ||
Financial instruments and financial risk management | ||
Total non-derivative financial liabilities | $ 0 | $ 0 |
Financial instruments and fin_4
Financial instruments and financial risk management - Statement of financial position (Details) - CAD ($) | Mar. 31, 2020 | Dec. 31, 2019 |
Financial instruments and financial risk management | ||
Financial assets and liabilities | $ 6,226,100 | $ 10,724,090 |
Cash and cash equivalents | ||
Financial instruments and financial risk management | ||
Financial assets and liabilities | 6,600,785 | 10,555,007 |
Restricted cash | ||
Financial instruments and financial risk management | ||
Financial assets and liabilities | 89,343 | 81,981 |
Trade receivable | ||
Financial instruments and financial risk management | ||
Financial assets and liabilities | 11,304 | 192,998 |
Trade payables | ||
Financial instruments and financial risk management | ||
Financial assets and liabilities | $ (475,332) | $ (105,896) |
Financial instruments and fin_5
Financial instruments and financial risk management - Financial liabilities (Details) - CAD ($) | Mar. 31, 2020 | Dec. 31, 2019 |
Financial instruments and financial risk management | ||
Financial assets | $ 7,892,221 | $ 11,424,553 |
Financial liabilities | 5,164,827 | 9,202,436 |
Cash and cash equivalents | ||
Financial instruments and financial risk management | ||
Financial assets | 7,534,585 | 11,095,848 |
Restricted cash | ||
Financial instruments and financial risk management | ||
Financial assets | 191,675 | 184,314 |
Receivables | ||
Financial instruments and financial risk management | ||
Financial assets | 165,961 | 144,391 |
Non-derivative financial liabilities | Trade payable and accrued liabilities | ||
Financial instruments and financial risk management | ||
Financial liabilities | 2,093,777 | 2,128,226 |
Non-derivative financial liabilities | Shareholder loan | ||
Financial instruments and financial risk management | ||
Financial liabilities | 1,038 | 2,076 |
Derivative financial liabilities | Derivative liability | ||
Financial instruments and financial risk management | ||
Financial liabilities | $ 3,070,012 | $ 7,072,134 |
Financial instruments and fin_6
Financial instruments and financial risk management - Additional information (Details) - CAD ($) | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Disclosure of risk management strategy related to hedge accounting [line items] | |||
Impact of net loss | $ (922,099) | $ 347,210 | |
Percentage of volatility used was increased | 10.00% | ||
Derivative liability | $ 319,343 | $ 540,285 | |
Interest rate risk | |||
Disclosure of risk management strategy related to hedge accounting [line items] | |||
Impact of net loss | $ 56,502 | $ 268,926 | |
Change in market interest rates | 1.00% | ||
Foreign exchange risk | |||
Disclosure of risk management strategy related to hedge accounting [line items] | |||
Change in the US dollars to Canadian dollar exchange rate | 10.00% | ||
Impact of net loss | $ 622,610 | $ 1,072,409 |
Subsequent event - Additional I
Subsequent event - Additional Information (Details) | Apr. 01, 2020USD ($)shares | Mar. 31, 2020CAD ($) |
Disclosure of non-adjusting events after reporting period [line items] | ||
Shares issue costs | $ 73,330 | |
Share transaction | ||
Disclosure of non-adjusting events after reporting period [line items] | ||
Number of common shares issued | shares | 3,464,092 | |
Gross proceeds from issuance | $ 3,561,304 | |
Shares issue costs | $ 106,918 |