Document and Entity Information
Document and Entity Information | 6 Months Ended |
Jun. 30, 2020 | |
Document and Entity Information | |
Entity Registrant Name | ELECTRAMECCANICA VEHICLES CORP. |
Entity Central Index Key | 0001637736 |
Amendment Flag | false |
Document Fiscal Period Focus | Q2 |
Current Fiscal Year End Date | --12-31 |
Document Type | 6-K |
Document Period End Date | Jun. 30, 2020 |
Document Fiscal Year Focus | 2020 |
Condensed Unaudited Consolidate
Condensed Unaudited Consolidated Statements of Financial Position - CAD ($) | Jun. 30, 2020 | Dec. 31, 2019 | |
Current assets | |||
Cash and cash equivalents | $ 51,252,752 | $ 11,095,848 | |
Receivables | 207,428 | 440,930 | |
Prepaid expenses | 6,321,339 | 6,580,976 | |
Inventory | 1,309,658 | 750,151 | |
Current assets | 59,091,177 | 18,867,905 | |
Non-current assets | |||
Restricted cash | 188,463 | 184,314 | |
Plant and equipment | 9,879,971 | 9,990,542 | |
Net investment in sublease | 178,810 | ||
Goodwill and other intangible assets | 1,236,631 | 1,239,131 | |
TOTAL ASSETS | 70,575,052 | 30,281,892 | |
Current liabilities | |||
Trade payables and accrued liabilities | 919,040 | 2,128,226 | |
Customer deposits | 410,973 | 411,479 | |
Construction contract liability | 281,924 | 199,465 | |
Shareholder loan | 2,076 | ||
Deferred income tax | 15,580 | 42,855 | |
Current portion of lease liabilities | 627,645 | 604,886 | |
Total Current Liabilities | 2,255,162 | 3,388,987 | |
Non-current liabilities | |||
Derivative liability | [1] | 9,984,337 | 7,072,134 |
Lease liabilities | 769,551 | 858,790 | |
TOTAL LIABILITIES | 13,009,050 | 11,319,911 | |
EQUITY | |||
Share capital | 116,205,676 | 66,574,255 | |
Deficit | (76,960,534) | (62,116,008) | |
Reserves | 18,320,860 | 14,503,734 | |
TOTAL EQUITY | 57,566,002 | 18,961,981 | |
TOTAL LIABILITIES AND EQUITY | $ 70,575,052 | $ 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 | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Condensed Unaudited Consolidated Statements of Comprehensive Loss | ||||
Revenue | $ 16,676 | $ 159,862 | $ 133,489 | $ 261,266 |
Cost of revenue | 38,822 | 166,652 | 205,917 | 262,804 |
Gross loss | (22,146) | (6,790) | (72,428) | (1,538) |
Operating expenses | ||||
Amortization | 211,558 | 261,298 | 445,187 | 529,980 |
General and administrative expenses | 2,145,947 | 1,591,663 | 4,357,767 | 3,504,338 |
Research and development expenses | 1,915,118 | 1,915,505 | 3,446,664 | 3,559,060 |
Sales and marketing expenses | 412,056 | 440,538 | 762,283 | 812,538 |
Stock-based compensation expense | 1,415,524 | 551,035 | 3,950,082 | 2,551,027 |
Share-based payment expense | 171,101 | 245,942 | ||
Operating expenses | 6,100,203 | 4,931,140 | 12,961,983 | 11,202,885 |
Operating loss | (6,122,349) | (4,937,930) | (13,034,411) | (11,204,423) |
Other items | ||||
Interest expense/(income) | (14,018) | 26,230 | (52,663) | 58,083 |
Changes in fair value of derivative liability | 6,914,325 | (8,546,219) | 2,912,203 | 5,520,391 |
Other Income | (509,054) | (14,383) | (519,195) | (53,928) |
Foreign exchange (gain)/loss | 418,068 | 319,359 | (504,031) | 666,569 |
Income/(loss) before taxes | (12,931,670) | 3,277,083 | (14,870,725) | (17,395,538) |
Current income tax expense | 2,140 | 1,076 | 2,140 | |
Deferred income tax expense/(recovery) | 4,675 | (6,419) | (27,275) | (49,175) |
Net income/(loss) | (12,936,345) | 3,281,362 | (14,844,526) | (17,348,503) |
Other comprehensive income/(loss) | 131,668 | 21,904 | (127,453) | 24,587 |
Comprehensive income/(loss) | $ (12,804,677) | $ 3,303,266 | $ (14,971,979) | $ (17,323,916) |
Income/(loss) per share - basic and fully diluted | $ (0.28) | $ 0.09 | $ (0.36) | $ (0.50) |
Weighted average number of shares outstanding - basic and fully diluted | 46,036,494 | 36,909,154 | 41,543,016 | 34,987,274 |
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 | $ 16,090,029 | 16,090,029 | |||
Shares issued for cash (in shares) | 3,333,334 | ||||
Shares issue cost | $ (1,364,808) | (1,364,808) | |||
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 income 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, 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 | ||||
Net income loss for the quarter | (17,348,503) | ||||
Ending balance at Jun. 30, 2019 | $ 66,559,231 | 10,206,087 | 14,582 | (48,722,200) | 28,057,700 |
Ending balance, shares at Jun. 30, 2019 | 36,959,810 | ||||
Beginning balance at Mar. 31, 2019 | $ 66,205,863 | 9,667,583 | (7,322) | (52,003,562) | 23,862,562 |
Beginning balance, shares at Mar. 31, 2019 | 36,804,997 | ||||
Shares issue cost | $ (10,425) | (10,425) | |||
Shares issued pursuant to exercise of warrants | $ 145,153 | 145,153 | |||
Shares issued pursuant to exercise of warrants (in shares) | 70,023 | ||||
Shares issued for services | $ 171,101 | 171,101 | |||
Shares issued for services (in shares) | 41,030 | ||||
Shares issued pursuant to exercise of options | $ 47,539 | (12,531) | 35,008 | ||
Shares issued pursuant to exercise of options (in shares) | 43,760 | ||||
Stock-based compensation | 551,035 | 551,035 | |||
Net income loss for the quarter | 3,281,362 | 3,281,362 | |||
Foreign currency translation reserve | 21,904 | 21,904 | |||
Ending balance at Jun. 30, 2019 | $ 66,559,231 | 10,206,087 | 14,582 | (48,722,200) | 28,057,700 |
Ending balance, shares at Jun. 30, 2019 | 36,959,810 | ||||
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 issue cost | $ (73,330) | (73,330) | |||
Stock-based compensation | 2,534,558 | 2,534,558 | |||
Net income 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 | ||||
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 | ||||
Net income loss for the quarter | (14,844,526) | ||||
Ending balance at Jun. 30, 2020 | $ 116,205,676 | 18,392,108 | (71,248) | (76,960,534) | 57,566,002 |
Ending balance, shares at Jun. 30, 2020 | 63,182,739 | ||||
Beginning balance at Mar. 31, 2020 | $ 66,512,083 | 16,982,087 | (202,916) | (64,024,189) | 19,267,065 |
Beginning balance, shares at Mar. 31, 2020 | 37,056,874 | ||||
Shares issued for cash | $ 52,420,971 | 52,420,971 | |||
Shares issued for cash (in shares) | 25,913,365 | ||||
Shares issue cost | $ (2,890,382) | (2,890,382) | |||
Shares issued pursuant to exercise of warrants | $ 150,000 | 150,000 | |||
Shares issued pursuant to exercise of warrants (in shares) | 187,500 | ||||
Shares issued pursuant to exercise of options | $ 13,004 | (5,504) | 7,500 | ||
Shares issued pursuant to exercise of options (in shares) | 25,000 | ||||
Stock-based compensation | 1,415,525 | 1,415,525 | |||
Net income loss for the quarter | (12,936,345) | (12,936,345) | |||
Foreign currency translation reserve | 131,668 | 131,668 | |||
Ending balance at Jun. 30, 2020 | $ 116,205,676 | $ 18,392,108 | $ (71,248) | $ (76,960,534) | $ 57,566,002 |
Ending balance, shares at Jun. 30, 2020 | 63,182,739 |
Condensed Unaudited Consolida_4
Condensed Unaudited Consolidated Statements of Cash Flows - CAD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Operating activities | ||||
Income/(loss) for the quarter | $ (12,936,345) | $ 3,281,362 | $ (14,844,526) | $ (17,348,503) |
Adjustments for: | ||||
Amortization | 211,558 | 261,298 | 445,187 | 529,980 |
Stock-based compensation expense | 1,415,524 | 551,035 | 3,950,082 | 2,551,027 |
Share-based payment expense | 171,101 | 245,942 | ||
Interest expense/(income) | 26,230 | 58,083 | ||
Interest expense/(income) | (14,018) | (52,663) | ||
Changes in fair value of derivative liability | 6,914,325 | (8,546,219) | 2,912,203 | 5,520,391 |
Deferred income tax expense/( recovery) | 4,675 | (6,419) | (27,275) | (49,175) |
Changes in non-cash working capital items: | ||||
Receivables | 40,131 | (580,043) | 150,873 | (516,319) |
Prepaid expenses | 237,169 | (2,922,683) | 252,210 | (4,810,789) |
Inventory | (537,453) | (200,494) | (559,507) | (642,182) |
Trade payables and accrued liabilities | (1,152,893) | (307,901) | (1,279,068) | (485,061) |
Customer deposits and construction contract liability | 67,747 | 29,710 | 81,953 | 55,734 |
Net cash flows used in operating activities | (5,749,580) | (8,243,023) | (8,970,531) | (14,890,872) |
Investing activities | ||||
Investments in restricted cash | 3,212 | 740 | (4,149) | 1,631 |
Expenditures on plant and equipment | (223,849) | (1,093,016) | (339,884) | (1,268,815) |
Proceeds from intangible assets | 8,042 | |||
Net cash flows used in investing activities | (220,637) | (1,092,276) | (344,033) | (1,259,142) |
Financing activities | ||||
Interest received | 408 | 2,967 | 193,866 | 12,087 |
Interest from net investment in sublease | 5,167 | 8,995 | ||
Interest paid | (395) | (150) | ||
Interest on lease payments | (26,685) | (32,730) | (56,351) | (68,185) |
Repayment of shareholder loans | (1,038) | (1,038) | (2,076) | (2,077) |
Repayment of leases | (145,618) | (133,215) | (292,672) | (299,647) |
Payment received for net investment in sublease | 36,392 | 59,464 | ||
Proceeds from issuance of common shares for options exercised | 7,500 | 35,008 | 7,500 | 35,008 |
Proceeds from issuance of common shares for warrants exercised | 150,000 | 145,153 | 150,000 | 4,195,286 |
Proceeds on issuance of common shares - net of issue costs | 49,530,590 | (10,425) | 49,530,590 | 14,714,796 |
Net cash flows from financing activities | 49,556,716 | 5,720 | 49,598,921 | 18,587,118 |
Increase/(decrease) in cash and cash equivalents | 43,586,499 | (9,329,579) | 40,284,357 | 2,437,104 |
Effect of exchange rate changes on cash | 131,668 | 21,904 | (127,453) | 24,587 |
Cash and cash equivalents, beginning | 7,534,585 | 30,696,299 | 11,095,848 | 18,926,933 |
Cash and cash equivalents, ending | $ 51,252,752 | 21,388,624 | $ 51,252,752 | 21,388,624 |
Supplemental schedule of non-cash financing and investing transactions: | ||||
Shares issued for services | $ 171,101 | $ 245,942 |
Nature and continuance of opera
Nature and continuance of operations | 6 Months Ended |
Jun. 30, 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 and 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 June 30, 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 | 6 Months Ended |
Jun. 30, 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 August 11, 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., from the date of incorporation of January 22, 2018, 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: - - - Significant accounting policies Leases 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 recognize 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. 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 and 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. Government grants A government grant is recognized if there is reasonable assurance that it will be received and that the Company will comply with the conditions associated with the grant. If the conditions are met, the Company recognizes the grant in profit or loss on a systematic basis in line with its recognition of the expenses that the grant is intended to compensate. For grants related to income, the Company can elect to either offset the grant against the related expenditure or include it in other income. Government assistance received by the Company during the period have been accounted for as government grants related to income and have been included in other income. |
Cash and cash equivalents
Cash and cash equivalents | 6 Months Ended |
Jun. 30, 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: June 30, December 31, 2020 2019 Cash $ 1,668,579 $ 2,670,877 Cash equivalent 49,584,173 8,424,971 $ 51,252,752 $ 11,095,848 |
Receivables
Receivables | 6 Months Ended |
Jun. 30, 2020 | |
Receivables | |
Receivables | 4. June 30, December 31, 2020 2019 Trade receivable $ 30,165 $ 14,986 GST receivable 63,543 47,428 Scientific research and experimental development tax credits receivable — 249,111 Other receivables 113,720 129,405 $ 207,428 $ 440,930 |
Plant and equipment
Plant and equipment | 6 Months Ended |
Jun. 30, 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 21,476 82,380 — 12,498 237,608 216,096 570,058 Disposals — — (13,884) (36,110) — — (49,994) Lease termination and derecognition 1,2 — — — — (463,879) — (463,879) Foreign exchange difference 4,949 237 — 14,606 (29,691) — (9,899) June 30, 2020 594,603 353,733 374,165 504,662 1,805,507 8,077,015 11,709,685 Amortization: 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 43,139 45,208 30,748 71,163 241,474 — 431,732 Disposals — — (9,659) (29,430) — — (39,089) Lease termination and derecognition 1,2 — — — — (260,443) — (260,443) Foreign exchange difference 908 30 — 5,604 18,115 — 24,657 June 30, 2020 352,820 175,273 353,666 284,012 663,943 — 1,829,714 Net book value: At December 31, 2019 259,405 141,081 55,472 276,993 1,396,672 7,860,919 9,990,542 June 30, 2020 241,783 178,460 20,499 220,650 1,141,564 8,077,015 9,879,971 1 The Company entered into a sublease agreement for its office space in Los Angeles, USA, 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 leases 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 ¥40 million ($7.7 million) as at June 30, 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 June 30, 2020, the Company has completed the prototype tooling and molds with an 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 has paid 90% of prototype tooling and molds and 79% 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 period ended June 30, 2020 since no units had been produced using the production tooling and molds. On October 16, 2017, Jerry Kroll, a director 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 | 6 Months Ended |
Jun. 30, 2020 | |
Net investment in sublease | |
Net investment in sublease | 6. The Company entered into an agreement to sublease the office space in Los Angeles, USA, 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 June 30, 2020, the contractual undiscounted cash flows related to the sublease were as follows: Future Present value minimum of minimum lease lease payments Interest payments receivable income receivable Less than one year $ 163,017 $ 11,041 $ 151,976 Between one and five years 27,170 336 26,834 Net investment in sublease $ 190,187 $ 11,377 $ 178,810 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 6 Months Ended |
Jun. 30, 2020 | |
Goodwill and Intangible Assets | |
Goodwill and Intangible Assets | 7. June 30, December 31, 2020 2019 Identifiable intangibles on acquisition of InterMeccanica $ 521,567 $ 524,067 Goodwill on acquisition of InterMeccanica 699,844 699,844 Other intangibles 15,220 15,220 $ 1,236,631 $ 1,239,131 |
Trade payables and accrued liab
Trade payables and accrued liabilities | 6 Months Ended |
Jun. 30, 2020 | |
Trade payables and accrued liabilities | |
Trade payables and accrued liabilities | 8. June 30, December 31, 2020 2019 Trade payables $ 656,681 $ 693,502 Due to related parties (Note 18) 33,225 275,512 Accrued liabilities 229,134 1,159,212 $ 919,040 $ 2,128,226 |
Lease liabilities
Lease liabilities | 6 Months Ended |
Jun. 30, 2020 | |
Lease liabilities. | |
Lease liabilities | 9. Lease obligations relate to the Company’s rent of office space, warehouse spaces and kiosk locations to promote vehicle sales. 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 entered into a lease agreement in April 2020 for the lease of a kiosk location in Los Angeles which expires in July 2023. 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 $15,790 and $48,992 of lease expenses for the three and six months ended June 30, 2020 (June 30, 2019 – $843 for the three and six months respectively), for short-term leases and low-value leases which are not included in the measurement of lease liabilities. The following tables reconciles the change in the lease liabilities and discloses a maturity analysis of the lease liabilities for the period ended June 30, 2020: Balance as at January 1, 2020 $ 1,463,676 Lease addition 237,608 Lease termination (47,238) Accretion of lease liability 56,352 Repayment of principal and interest (313,202) Balance as at June 30, 2020 $ 1,397,196 Present value of Future minimum minimum lease lease payments Interest payments Less than one year $ 719,178 $ 91,533 $ 627,645 Between one and five years 687,259 124,279 562,980 More than five years 222,630 16,059 206,571 $ 1,629,067 $ 231,871 1,397,196 Current portion of lease liabilities 627,645 Non-current portion of lease liabilities $ 769,551 |
Derivative liability
Derivative liability | 6 Months Ended |
Jun. 30, 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: June 30, 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 2,912,203 2,926,392 Balance, ending $ 9,984,337 $ 7,072,134 The fair value of the transferrable warrants was calculated using the warrant price of USD $0.50 at issuance and USD $0.85 at June 30, 2020 as quoted on the NASDAQ exchange. |
Share capital
Share capital | 6 Months Ended |
Jun. 30, 2020 | |
Share capital | |
Share capital | 11. Authorized share capital Unlimited number of common shares without par value. At June 30, 2020, the Company had 63,182,739 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). On July 13, 2020, the Company and the Agents amended the Sales Agreement to increase the aggregate offering price to up to US$59,500,000. 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. From March 30, 2020 to June 4, 2020, the Company issued 15,920,865 Shares for the ATM offering under the Sales Agreement for gross proceeds of $25,257,514 (US$18,489,939). Share issue costs related to the ATM offering were $1,129,425. On June 10, 2020, the Company entered into definitive agreements with institutional investors to sell an aggregate of 10,000,000 common shares of the Company at a price of US$2.00 per share for gross proceeds of US$20,000,000 (the "Offering"). The Offering was priced "at market" under the rules of the Nasdaq Global Select Market. The offering was closed on June 12, 2020. The Company received gross proceeds of $27,174,615 with share issue costs of $1,834,286 (US$1,350,000). On June 16, 2020, the Company issued 187,500 shares at a price of $0.80 per share for gross proceeds of $150,000 for warrants exercised by investors. On June 25, 2020, the Company issued 25,000 shares at a price of $0.30 per share for gross proceeds of $7,500 for options exercised by investors. Basic and fully diluted loss per share The calculation of basic and fully diluted loss per share for the six months ended June 30, 2020 was based on the net loss attributable to common shareholders of $14,844,526 (June 30, 2019 – $17,348,503) and the weighted average number of common shares outstanding of 41,543,016 (June 30, 2019 – 34,987,274). 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 our Board of Directors 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 seven 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 of Directors. Options granted vest based on terms and conditions set up in the option agreements themselves. On exercise each option allows the holder to purchase one common share of the Company. The changes in options during the six months ended June 30, 2020 are as follows: June 30, 2020 Number of options Weighted average exercise price Options outstanding, beginning 12,908,315 $ 2.07 Options granted — — Options exercised (25,000) 0.30 Options expired and forfeited (385,311) 2.44 Options cancelled — — Options outstanding, ending 12,498,004 $ 2.06 Details of options outstanding as at June 30, 2020 are as follows: Weighted average Number of options Number of options Exercise price contractual life outstanding exercisable $ 0.30 1.94 2,250,000 2,250,000 $ 0.80 2.06 621,013 621,013 $ 2.00 2.16 282,076 257,160 $ 1.53 USD 3.39 120,000 120,000 $ 1.80 USD 6.30 120,000 80,000 $ 1.91 USD 6.44 5,106,250 1,611,865 $ 2.45 USD 6.10 1,250,000 1,145,833 $ 2.53 USD 6.11 131,818 120,824 $ 2.62 USD 1.99 700,000 21,875 $ 3.40 USD 4.94 1,228,182 1,228,182 $ 5.00 USD 2.11 352,834 352,834 $ 6.18 USD 1.57 160,939 134,901 $ 9.60 USD 4.18 174,892 118,552 12,498,004 8,063,039 The weighted average grant date fair value of options granted during the six months ended June 30, 2020 was Nil (June 30, 2019 - $3.46). During the three and six months ended June 30, 2020, the Company recognized stock-based compensation expense of $1,415,524 and $3,950,082 (three and six months June 30, 2019 - $551,035 and $2,551,027). Warrants On exercise each warrant allows the holder to purchase one common share of the Company. The changes in warrants during the six months ended June 30, 2020 are as follows: June 30, 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 (187,500) 0.80 (1,116,322) 3.26 Warrants expired — — (650,000) 19.93 Warrants outstanding, ending 20,415,896 $ 4.68 20,603,396 $ 4.64 At June 30, 2020, all warrants outstanding were exercisable. Details of warrants outstanding as at June 30, 2020 are as follows: Weighted average Number of warrants Exercise Price contractual life outstanding Non-Transferable Warrants $0.80 CAD - $16.00 CAD 1.33 years 10,822,559 $2.00 USD - $24.00 USD 3.65 years 5,091,969 Transferable Warrants $4.25 USD 3.11 years 4,501,368 Warrants outstanding, ending 2.30 years 20,415,896 |
Share Based Reserves
Share Based Reserves | 6 Months Ended |
Jun. 30, 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 | 6 Months Ended |
Jun. 30, 2020 | |
General and administrative expenses | |
General and administrative expenses | 13. Three months ended Six months ended June 30, 2020 June 30, 2019 June 30, 2020 June 30, 2019 Rent $ 90,119 $ 73,609 $ 207,365 $ 195,484 Office expenses 249,746 417,795 773,087 774,339 Legal and professional 730,555 316,179 1,200,010 821,702 Consulting fees 377,360 402,027 773,878 838,603 Investor relations 77,490 62,171 219,851 208,702 Salaries 620,677 319,882 1,183,576 665,508 $ 2,145,947 $ 1,591,663 $ 4,357,767 $ 3,504,338 |
Research and development expens
Research and development expenses | 6 Months Ended |
Jun. 30, 2020 | |
Research and development expenses | |
Research and development expenses | 14. Three months ended Six months ended June 30, 2020 June 30, 2019 June 30, 2020 June 30, 2019 Labor $ 1,223,260 $ 1,151,195 $ 2,457,804 $ 2,341,224 Materials 691,858 1,145,503 988,860 1,599,029 Government grants — (381,193) — (381,193) $ 1,915,118 $ 1,915,505 $ 3,446,664 $ 3,559,060 |
Sales and marketing expenses
Sales and marketing expenses | 6 Months Ended |
Jun. 30, 2020 | |
Sales and marketing expenses | |
Sales and marketing expenses | 15. Three months ended Six months ended June 30, 2020 June 30, 2019 June 30, 2020 June 30, 2019 Consulting $ 159,687 $ 96,976 $ 260,415 $ 223,829 Marketing 129,030 170,761 177,176 288,143 Salaries 123,339 172,801 324,692 300,566 $ 412,056 $ 440,538 $ 762,283 $ 812,538 |
Other Income
Other Income | 6 Months Ended |
Jun. 30, 2020 | |
Other Income | |
Other Income | 16. Three months ended Six months ended June 30, 2020 June 30, 2019 June 30, 2020 June 30, 2019 Paycheck Protraction Program Loan 1 $ 185,284 $ — $ 185,284 $ — Industrial Research Assistance Program Funding 243,936 — 243,936 — Canada Emergency Wage Subsidy 79,834 — 79,834 — Miscellaneous income — 14,383 10,141 53,928 $ 509,054 $ 14,383 $ 519,195 $ 53,928 1 On May 21, 2020, the Company entered into a promissory note evidencing an unsecured loan in the amount of US$133,700 made to the Company under the Paycheck Protection Program (the “Loan”). The Paycheck Protection Program (or “PPP”) was established under the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”) and is administered by the U.S. Small Business Administration. The Loan to the Company is being made through BMO Harris Bank National Association (the “Lender”). The Loan bears interest rate of 1% per year and matures in 24 months from the date of the Loan. Beginning seven months from the date of the Loan, the Company is required to make 18 monthly payments of principal and interest. Under the terms of the CARES Act, PPP loan recipients can apply for and be granted forgiveness for all or a portion of loan granted under the PPP. Such forgiveness will be determined, subject to limitations, based on the use of loan proceeds for payment of payroll costs and any covered payments of mortgage interest, rent and utilities. As at June 30, 2020, the Company has used all proceeds from the PPP loan to maintain payroll and make lease and utility payments. The Company has the ability and intent to meet the loan forgiveness conditions for the PPP Loan in accordance with the established guidelines issued by the U.S Small Business Administration. Accordingly, the Company has accounted for the PPP Loan as a government grant in accordance with IAS 20 – Accounting for Government Grants and Disclosure of Government Assistance. During the three months ended June 30, 2020, the Company received $243,936 from the Industrial Research Assistance Program Funding and $79,834 in Canada Emergency Wage Subsidy relief related to COVID-19. This governmental assistance received is non-repayable and was accounted for as government grants related to income in accordance with IAS 20. |
Segmented information
Segmented information | 6 Months Ended |
Jun. 30, 2020 | |
Segmented information | |
Segmented information | 17. 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 June 30, 2020 Three Months Ended June 30, 2019 Custom Built Custom Built Electric Vehicles Vehicles Electric Vehicles Vehicles Revenue $ — $ 16,676 $ — $ 159,862 Gross loss — (22,146) — (6,790) Operating expenses 6,038,572 61,631 4,851,399 79,741 Other items 6,918,555 (109,234) (8,214,577) (436) Income tax/(recovery) — 4,675 2,140 (6,419) Net (income)/loss 12,957,127 (20,782) (3,361,038) 79,676 Six months ended June 30, 2020 Six months ended June 30, 2019 Electric Vehicles Custom Built Vehicles Electric Vehicles Custom Built Vehicles Revenue $ — $ 133,489 $ — $ 261,266 Gross loss — (72,428) — (1,538) Operating expenses 12,838,933 123,050 11,010,624 192,261 Other items 1,889,120 (52,806) 6,188,326 2,789 Income tax/(recovery) — (26,199) 2,140 (49,175) Net loss 14,728,053 116,473 17,201,090 147,413 June 30, 2020 December 31, 2019 Electric Vehicles Custom Built Vehicles Electric Vehicles Custom Built Vehicles Inventory $ 689,884 $ 619,774 $ 307, 225 $ 442,926 Plant and equipment 9,499,568 380,403 9,580,326 410,216 |
Related party transactions
Related party transactions | 6 Months Ended |
Jun. 30, 2020 | |
Related party transactions | |
Related party transactions | 18. Related party balances The following amounts are due to related parties: June 30, December 31, 2020 2019 Shareholder loan $ — $ 2,076 Due to related parties (Note 8) 33,225 275,512 $ 33,225 $ 277,588 These amounts are unsecured, non-interest bearing and have no fixed terms of repayment. Key management personnel compensation Three months ended Six months ended June 30, 2020 June 30, 2019 June 30, 2020 June 30, 2019 Consulting fees $ 62,502 $ 118,398 $ 125,004 $ 236,796 Salary 303,898 154,667 604,765 298,667 Directors fees 108,087 77,928 248,917 160,478 Stock-based compensation 1,381,681 308,626 3,841,448 1,956,146 $ 1,856,168 $ 659,619 $ 4,820,134 $ 2,652,087 |
Financial instruments and finan
Financial instruments and financial risk management | 6 Months Ended |
Jun. 30, 2020 | |
Financial instruments and financial risk management | |
Financial instruments and financial risk management | 19. 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 a 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 June 30, 2020 and December 31, 2019: Between one More than At June 30, 2020 Within one year and five years five years Trade payables $ 656,681 — — Accrued liabilities 229,134 — — Due to related parties 33,225 — — Shareholder loan — — — $ 919,040 $ — $ — 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 the Canadian dollar equivalent of financial assets and liabilities that are denominated in US dollars: June 30, December 31, 2020 2019 Cash and cash equivalents $ 50,496,901 $ 10,555,007 Restricted cash 85,923 81,981 Receivables 84,397 192,998 Trade payables and accrued liabilities (592,487) (105,896) $ 50,074,734 $ 10,724,090 Based on the above net exposures, as at June 30, 2020, a 10% change in the US dollar to Canadian dollar exchange rate would impact the Company’s net loss by $5,007,473 (June 30, 2019 - $1,983,111). 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 12 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 $495,842 for the six months ended June 30, 2020 (June 30, 2019 - $185,498). Classification of financial instruments Financial assets included in the consolidated statements of financial position are as follows: June 30, December 31, 2020 2019 Amortized cost: Cash and cash equivalents $ 51,252,752 $ 11,095,848 Restricted cash 188,463 184,314 Receivables 143,885 144,391 $ 51,585,100 $ 11,424,553 Financial liabilities included in the consolidated statements of financial position are as follows: June 30, December 31, 2020 2019 Non-derivative financial liabilities: Trade payable and accrued liabilities $ 919,040 $ 2,128,226 Shareholder loan — 2,076 Derivative financial liabilities: Derivative liability 9,984,337 7,072,134 $ 10,903,377 $ 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 June 30, 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 June 30, 2020, if the volatility used was increased by 10% the impact would be an increase to the derivative liability of $568,461 (June 30, 2019 - $620,024) with a corresponding increase in comprehensive loss. |
Capital management
Capital management | 6 Months Ended |
Jun. 30, 2020 | |
Capital management | |
Capital management | 20. 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 six months ended June 30, 2020. The Company is not subject to any externally imposed capital requirements. |
Subsequent event
Subsequent event | 6 Months Ended |
Jun. 30, 2020 | |
Subsequent event | |
Subsequent event | 21. From July 1, 2020 to the reporting date, the Company issued 1,232,500 shares at a price of US$2.56 per share for gross proceeds of US$3,155,200 for warrants exercised by investors. These warrants were granted to investors through a concurrent placement with the offering of 4,250,000 common shares on November 9, 2018. On July 7, 2020, the Company issued 28,517 shares at a price of US$3.20 per share for no consideration in relation to 75,315 warrants exercised by a placement agent granted under a Placement Agent Agreement on November 9, 2018. From July 1, 2020 to the reporting date, the Company issued 81,250 shares at prices ranging from of $2.00 to $4.00 per share for gross proceeds of $182,500 for warrants exercised by investors. From July 1, 2020 to the reporting date, the Company issued 135,171 shares at prices ranging from of $0.30 to $2.00 per share for gross proceeds of $88,644 for options exercised by investors. On July 13, 2020, the Company and the Agents amended the Sales Agreement for ATM offering to increase the aggregate offering price to up to US$59,500,000 (Note 11). From July 14, 2020 to the reporting date, the Company has issued 4,412,804 Shares for the ATM offering for gross proceeds of US$15,926,266. Share issue costs related to the ATM offering are US$478,140. |
Significant accounting polici_2
Significant accounting policies and basis of preparation (Policies) | 6 Months Ended |
Jun. 30, 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., from the date of incorporation of January 22, 2018, 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 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 recognize 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. 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 and 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. |
Government grants | Government grants A government grant is recognized if there is reasonable assurance that it will be received and that the Company will comply with the conditions associated with the grant. If the conditions are met, the Company recognizes the grant in profit or loss on a systematic basis in line with its recognition of the expenses that the grant is intended to compensate. For grants related to income, the Company can elect to either offset the grant against the related expenditure or include it in other income. Government assistance received by the Company during the period have been accounted for as government grants related to income and have been included in other income. |
Cash and cash equivalents (Tabl
Cash and cash equivalents (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Cash and cash equivalents | |
Schedule of cash and cash equivalents | June 30, December 31, 2020 2019 Cash $ 1,668,579 $ 2,670,877 Cash equivalent 49,584,173 8,424,971 $ 51,252,752 $ 11,095,848 |
Receivables (Tables)
Receivables (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Receivables | |
Schedule of receivables | June 30, December 31, 2020 2019 Trade receivable $ 30,165 $ 14,986 GST receivable 63,543 47,428 Scientific research and experimental development tax credits receivable — 249,111 Other receivables 113,720 129,405 $ 207,428 $ 440,930 |
Plant and equipment (Tables)
Plant and equipment (Tables) | 6 Months Ended |
Jun. 30, 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 21,476 82,380 — 12,498 237,608 216,096 570,058 Disposals — — (13,884) (36,110) — — (49,994) Lease termination and derecognition 1,2 — — — — (463,879) — (463,879) Foreign exchange difference 4,949 237 — 14,606 (29,691) — (9,899) June 30, 2020 594,603 353,733 374,165 504,662 1,805,507 8,077,015 11,709,685 Amortization: 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 43,139 45,208 30,748 71,163 241,474 — 431,732 Disposals — — (9,659) (29,430) — — (39,089) Lease termination and derecognition 1,2 — — — — (260,443) — (260,443) Foreign exchange difference 908 30 — 5,604 18,115 — 24,657 June 30, 2020 352,820 175,273 353,666 284,012 663,943 — 1,829,714 Net book value: At December 31, 2019 259,405 141,081 55,472 276,993 1,396,672 7,860,919 9,990,542 June 30, 2020 241,783 178,460 20,499 220,650 1,141,564 8,077,015 9,879,971 1 The Company entered into a sublease agreement for its office space in Los Angeles, USA, 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 leases 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) |
Net investment in sublease (Tab
Net investment in sublease (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Net investment in sublease | |
Schedule of contractual undiscounted cash flows related to sublease | As at June 30, 2020, the contractual undiscounted cash flows related to the sublease were as follows: Future Present value minimum of minimum lease lease payments Interest payments receivable income receivable Less than one year $ 163,017 $ 11,041 $ 151,976 Between one and five years 27,170 336 26,834 Net investment in sublease $ 190,187 $ 11,377 $ 178,810 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Goodwill and Intangible Assets | |
Schedule of goodwill and intangible assets | June 30, December 31, 2020 2019 Identifiable intangibles on acquisition of InterMeccanica $ 521,567 $ 524,067 Goodwill on acquisition of InterMeccanica 699,844 699,844 Other intangibles 15,220 15,220 $ 1,236,631 $ 1,239,131 |
Trade payables and accrued li_2
Trade payables and accrued liabilities (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Trade payables and accrued liabilities | |
Schedule of trade payables and accrued liabilities | June 30, December 31, 2020 2019 Trade payables $ 656,681 $ 693,502 Due to related parties (Note 18) 33,225 275,512 Accrued liabilities 229,134 1,159,212 $ 919,040 $ 2,128,226 |
Lease liabilities (Tables)
Lease liabilities (Tables) | 6 Months Ended |
Jun. 30, 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 addition 237,608 Lease termination (47,238) Accretion of lease liability 56,352 Repayment of principal and interest (313,202) Balance as at June 30, 2020 $ 1,397,196 |
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 $ 719,178 $ 91,533 $ 627,645 Between one and five years 687,259 124,279 562,980 More than five years 222,630 16,059 206,571 $ 1,629,067 $ 231,871 1,397,196 Current portion of lease liabilities 627,645 Non-current portion of lease liabilities $ 769,551 |
Derivative liability (Tables)
Derivative liability (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Derivative liability | |
Schedule of changes in fair values of the derivative liability | June 30, 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 2,912,203 2,926,392 Balance, ending $ 9,984,337 $ 7,072,134 |
Share capital (Tables)
Share capital (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Share capital | |
Schedule of changes in options | June 30, 2020 Number of options Weighted average exercise price Options outstanding, beginning 12,908,315 $ 2.07 Options granted — — Options exercised (25,000) 0.30 Options expired and forfeited (385,311) 2.44 Options cancelled — — Options outstanding, ending 12,498,004 $ 2.06 |
Schedule of details of options outstanding | Weighted average Number of options Number of options Exercise price contractual life outstanding exercisable $ 0.30 1.94 2,250,000 2,250,000 $ 0.80 2.06 621,013 621,013 $ 2.00 2.16 282,076 257,160 $ 1.53 USD 3.39 120,000 120,000 $ 1.80 USD 6.30 120,000 80,000 $ 1.91 USD 6.44 5,106,250 1,611,865 $ 2.45 USD 6.10 1,250,000 1,145,833 $ 2.53 USD 6.11 131,818 120,824 $ 2.62 USD 1.99 700,000 21,875 $ 3.40 USD 4.94 1,228,182 1,228,182 $ 5.00 USD 2.11 352,834 352,834 $ 6.18 USD 1.57 160,939 134,901 $ 9.60 USD 4.18 174,892 118,552 12,498,004 8,063,039 |
Schedule of changes in warrants | June 30, 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 (187,500) 0.80 (1,116,322) 3.26 Warrants expired — — (650,000) 19.93 Warrants outstanding, ending 20,415,896 $ 4.68 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 1.33 years 10,822,559 $2.00 USD - $24.00 USD 3.65 years 5,091,969 Transferable Warrants $4.25 USD 3.11 years 4,501,368 Warrants outstanding, ending 2.30 years 20,415,896 |
General and administrative ex_2
General and administrative expenses (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
General and administrative expenses | |
Schedule of general and administrative expenses | Three months ended Six months ended June 30, 2020 June 30, 2019 June 30, 2020 June 30, 2019 Rent $ 90,119 $ 73,609 $ 207,365 $ 195,484 Office expenses 249,746 417,795 773,087 774,339 Legal and professional 730,555 316,179 1,200,010 821,702 Consulting fees 377,360 402,027 773,878 838,603 Investor relations 77,490 62,171 219,851 208,702 Salaries 620,677 319,882 1,183,576 665,508 $ 2,145,947 $ 1,591,663 $ 4,357,767 $ 3,504,338 |
Research and development expe_2
Research and development expenses (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Research and development expenses | |
Schedule of research and development expense | Three months ended Six months ended June 30, 2020 June 30, 2019 June 30, 2020 June 30, 2019 Labor $ 1,223,260 $ 1,151,195 $ 2,457,804 $ 2,341,224 Materials 691,858 1,145,503 988,860 1,599,029 Government grants — (381,193) — (381,193) $ 1,915,118 $ 1,915,505 $ 3,446,664 $ 3,559,060 |
Sales and marketing expenses (T
Sales and marketing expenses (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Sales and marketing expenses | |
Schedule of sales and marketing expenses | Three months ended Six months ended June 30, 2020 June 30, 2019 June 30, 2020 June 30, 2019 Consulting $ 159,687 $ 96,976 $ 260,415 $ 223,829 Marketing 129,030 170,761 177,176 288,143 Salaries 123,339 172,801 324,692 300,566 $ 412,056 $ 440,538 $ 762,283 $ 812,538 |
Other Income (Tables)
Other Income (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Other Income | |
Schedule of other income | Three months ended Six months ended June 30, 2020 June 30, 2019 June 30, 2020 June 30, 2019 Paycheck Protraction Program Loan 1 $ 185,284 $ — $ 185,284 $ — Industrial Research Assistance Program Funding 243,936 — 243,936 — Canada Emergency Wage Subsidy 79,834 — 79,834 — Miscellaneous income — 14,383 10,141 53,928 $ 509,054 $ 14,383 $ 519,195 $ 53,928 1 On May 21, 2020, the Company entered into a promissory note evidencing an unsecured loan in the amount of US$133,700 made to the Company under the Paycheck Protection Program (the “Loan”). The Paycheck Protection Program (or “PPP”) was established under the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”) and is administered by the U.S. Small Business Administration. The Loan to the Company is being made through BMO Harris Bank National Association (the “Lender”). |
Segmented information (Tables)
Segmented information (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Segmented information | |
Schedule of segmented information | Three Months Ended June 30, 2020 Three Months Ended June 30, 2019 Custom Built Custom Built Electric Vehicles Vehicles Electric Vehicles Vehicles Revenue $ — $ 16,676 $ — $ 159,862 Gross loss — (22,146) — (6,790) Operating expenses 6,038,572 61,631 4,851,399 79,741 Other items 6,918,555 (109,234) (8,214,577) (436) Income tax/(recovery) — 4,675 2,140 (6,419) Net (income)/loss 12,957,127 (20,782) (3,361,038) 79,676 Six months ended June 30, 2020 Six months ended June 30, 2019 Electric Vehicles Custom Built Vehicles Electric Vehicles Custom Built Vehicles Revenue $ — $ 133,489 $ — $ 261,266 Gross loss — (72,428) — (1,538) Operating expenses 12,838,933 123,050 11,010,624 192,261 Other items 1,889,120 (52,806) 6,188,326 2,789 Income tax/(recovery) — (26,199) 2,140 (49,175) Net loss 14,728,053 116,473 17,201,090 147,413 June 30, 2020 December 31, 2019 Electric Vehicles Custom Built Vehicles Electric Vehicles Custom Built Vehicles Inventory $ 689,884 $ 619,774 $ 307, 225 $ 442,926 Plant and equipment 9,499,568 380,403 9,580,326 410,216 |
Related party transactions (Tab
Related party transactions (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Related party transactions | |
Schedule of related party balances | June 30, December 31, 2020 2019 Shareholder loan $ — $ 2,076 Due to related parties (Note 8) 33,225 275,512 $ 33,225 $ 277,588 |
Schedule of key management personnel compensation | Three months ended Six months ended June 30, 2020 June 30, 2019 June 30, 2020 June 30, 2019 Consulting fees $ 62,502 $ 118,398 $ 125,004 $ 236,796 Salary 303,898 154,667 604,765 298,667 Directors fees 108,087 77,928 248,917 160,478 Stock-based compensation 1,381,681 308,626 3,841,448 1,956,146 $ 1,856,168 $ 659,619 $ 4,820,134 $ 2,652,087 |
Financial instruments and fin_2
Financial instruments and financial risk management (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Financial instruments and financial risk management | |
Schedule of contractual maturities of non-derivative financial liabilities | Between one More than At June 30, 2020 Within one year and five years five years Trade payables $ 656,681 — — Accrued liabilities 229,134 — — Due to related parties 33,225 — — Shareholder loan — — — $ 919,040 $ — $ — 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 | June 30, December 31, 2020 2019 Cash and cash equivalents $ 50,496,901 $ 10,555,007 Restricted cash 85,923 81,981 Receivables 84,397 192,998 Trade payables and accrued liabilities (592,487) (105,896) $ 50,074,734 $ 10,724,090 |
Schedule of classification of financial instruments | June 30, December 31, 2020 2019 Amortized cost: Cash and cash equivalents $ 51,252,752 $ 11,095,848 Restricted cash 188,463 184,314 Receivables 143,885 144,391 $ 51,585,100 $ 11,424,553 June 30, December 31, 2020 2019 Non-derivative financial liabilities: Trade payable and accrued liabilities $ 919,040 $ 2,128,226 Shareholder loan — 2,076 Derivative financial liabilities: Derivative liability 9,984,337 7,072,134 $ 10,903,377 $ 9,202,436 |
Cash and cash equivalents (Deta
Cash and cash equivalents (Details) - CAD ($) | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 |
Cash and cash equivalents | ||||||
Cash | $ 1,668,579 | $ 2,670,877 | ||||
Cash equivalent | 49,584,173 | 8,424,971 | ||||
Cash and cash equivalents | $ 51,252,752 | $ 7,534,585 | $ 11,095,848 | $ 21,388,624 | $ 30,696,299 | $ 18,926,933 |
Receivables (Details)
Receivables (Details) - CAD ($) | Jun. 30, 2020 | Dec. 31, 2019 |
Disclosure of detailed information about financial instruments [line items] | ||
Receivables | $ 207,428 | $ 440,930 |
Trade receivable | ||
Disclosure of detailed information about financial instruments [line items] | ||
Receivables | 30,165 | 14,986 |
GST receivable | ||
Disclosure of detailed information about financial instruments [line items] | ||
Receivables | 63,543 | 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 | $ 113,720 | $ 129,405 |
Plant and equipment (Details)
Plant and equipment (Details) - CAD ($) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2020 | Dec. 31, 2019 | |
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning balance | $ 9,990,542 | |
Ending balance | 9,879,971 | $ 9,990,542 |
Cost | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning balance | 11,663,399 | 5,950,228 |
Additions | 570,058 | 3,653,852 |
Adoption of IFRS 16 | 2,061,469 | |
Disposals | (49,994) | (2,150) |
Lease termination and derecognition | (463,879) | |
Foreign exchange difference | (9,899) | |
Ending balance | 11,709,685 | 11,663,399 |
Amortization | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning balance | (1,672,857) | (626,462) |
Additions | 431,732 | 1,047,649 |
Disposals | 39,089 | 1,254 |
Lease termination and derecognition | (260,443) | |
Foreign exchange difference | 24,657 | |
Ending balance | (1,829,714) | (1,672,857) |
Furniture and equipment | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning balance | 259,405 | |
Ending balance | 241,783 | 259,405 |
Furniture and equipment | Cost | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning balance | 568,178 | 494,487 |
Additions | 21,476 | 73,691 |
Foreign exchange difference | 4,949 | |
Ending balance | 594,603 | 568,178 |
Furniture and equipment | Amortization | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning balance | (308,773) | (230,798) |
Additions | 43,139 | 77,975 |
Foreign exchange difference | 908 | |
Ending balance | (352,820) | (308,773) |
Computer hardware and software | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning balance | 141,081 | |
Ending balance | 178,460 | 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 | 82,380 | 139,863 |
Disposals | (2,150) | |
Foreign exchange difference | 237 | |
Ending balance | 353,733 | 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 | 45,208 | 65,600 |
Disposals | 1,254 | |
Foreign exchange difference | 30 | |
Ending balance | (175,273) | (130,035) |
Vehicles | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning balance | 55,472 | |
Ending balance | 20,499 | 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 | 30,748 | 117,326 |
Disposals | 9,659 | |
Ending balance | (353,666) | (332,577) |
Leasehold improvements | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning balance | 276,993 | |
Ending balance | 220,650 | 276,993 |
Leasehold improvements | Cost | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning balance | 513,668 | 384,341 |
Additions | 12,498 | 129,327 |
Disposals | (36,110) | |
Foreign exchange difference | 14,606 | |
Ending balance | 504,662 | 513,668 |
Leasehold improvements | Amortization | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning balance | (236,675) | (114,724) |
Additions | 71,163 | 121,951 |
Disposals | 29,430 | |
Foreign exchange difference | 5,604 | |
Ending balance | (284,012) | (236,675) |
Right-of-use assets | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning balance | 1,396,672 | |
Ending balance | 1,141,564 | 1,396,672 |
Right-of-use assets | Cost | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning balance | 2,061,469 | |
Additions | 237,608 | |
Adoption of IFRS 16 | 2,061,469 | |
Lease termination and derecognition | (463,879) | |
Foreign exchange difference | (29,691) | |
Ending balance | 1,805,507 | 2,061,469 |
Right-of-use assets | Amortization | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning balance | (664,797) | |
Additions | 241,474 | 664,797 |
Lease termination and derecognition | (260,443) | |
Foreign exchange difference | 18,115 | |
Ending balance | (663,943) | (664,797) |
Production tooling and molds | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning balance | 7,860,919 | |
Ending balance | 8,077,015 | 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 | 216,096 | 3,310,971 |
Ending balance | $ 8,077,015 | $ 7,860,919 |
Plant and equipment - Additiona
Plant and equipment - Additional information (Details) ¥ in Millions, $ in Millions | 1 Months Ended | 6 Months Ended | |||||||
Feb. 29, 2020CAD ($) | Jan. 31, 2020CAD ($) | Sep. 29, 2017CNY (¥) | Jun. 30, 2020CAD ($) | Jun. 30, 2020CNY (¥) | Jun. 30, 2020CAD ($) | Oct. 16, 2017CNY (¥)shares | Oct. 16, 2017CAD ($)shares | Sep. 29, 2017USD ($) | |
Disclosure of detailed information about property, plant and equipment [line items] | |||||||||
Lease derecognition | $ 319,365 | $ 144,514 | |||||||
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 June 30, 2020, the Company has completed the prototype tooling and molds with an 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 has paid 90% of prototype tooling and molds and 79% 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 period ended June 30, 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 | ¥ 9.5 | $ 1.8 | |||||||
Manufacturing Agreement | Chongqing Zongshen Automobile Co., Ltd. | Mass Production Tooling and Molds | |||||||||
Disclosure of detailed information about property, plant and equipment [line items] | |||||||||
Agreement estimated cost | ¥ 40 | $ 7,700,000 | |||||||
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) | Jun. 30, 2020CAD ($) |
Disclosure of maturity analysis of finance lease payments receivable [line items] | |
Future minimum lease payments receivable | $ 190,187 |
Interest income | 11,377 |
Present value of minimum lease payments receivable | 178,810 |
Less than one year | |
Disclosure of maturity analysis of finance lease payments receivable [line items] | |
Future minimum lease payments receivable | 163,017 |
Interest income | 11,041 |
Present value of minimum lease payments receivable | 151,976 |
Between one and five years | |
Disclosure of maturity analysis of finance lease payments receivable [line items] | |
Future minimum lease payments receivable | 27,170 |
Interest income | 336 |
Present value of minimum lease payments receivable | $ 26,834 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets (Details) - CAD ($) | Jun. 30, 2020 | Dec. 31, 2019 |
Disclosure of reconciliation of changes in goodwill [line items] | ||
Goodwill and intangible assets | $ 1,236,631 | $ 1,239,131 |
Identifiable intangibles on acquisition of Intermeccanica | ||
Disclosure of reconciliation of changes in goodwill [line items] | ||
Goodwill and intangible assets | 521,567 | 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 ($) | Jun. 30, 2020 | Dec. 31, 2019 |
Trade payables and accrued liabilities | ||
Trade payables | $ 656,681 | $ 693,502 |
Due to related parties (Note 18) | 33,225 | 275,512 |
Accrued liabilities | 229,134 | 1,159,212 |
Trade payables and accrued liabilities | $ 919,040 | $ 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 | Jun. 30, 2020 |
Lease liabilities. | ||
Balance as at beginning period | $ 1,463,676 | |
Lease addition | 237,608 | |
Lease termination | $ 47,238 | (47,238) |
Accretion of lease liability | 56,352 | |
Repayment of principal and interest | (313,202) | |
Balance as at end period | $ 1,397,196 |
Lease liabilities (Details)
Lease liabilities (Details) - CAD ($) | 6 Months Ended | |
Jun. 30, 2020 | Dec. 31, 2019 | |
Disclosure of maturity analysis of lease payments [line items] | ||
Future minimum lease payments | $ 1,629,067 | |
Interest | 231,871 | |
Present value of minimum lease payments | 1,397,196 | |
Current portion of lease liabilities | 627,645 | $ 604,886 |
Non-current portion of lease liabilities | 769,551 | $ 858,790 |
Less than one year | ||
Disclosure of maturity analysis of lease payments [line items] | ||
Future minimum lease payments | 719,178 | |
Interest | 91,533 | |
Present value of minimum lease payments | 627,645 | |
Between one and five years | ||
Disclosure of maturity analysis of lease payments [line items] | ||
Future minimum lease payments | 687,259 | |
Interest | 124,279 | |
Present value of minimum lease payments | 562,980 | |
More than five years | ||
Disclosure of maturity analysis of lease payments [line items] | ||
Future minimum lease payments | 222,630 | |
Interest | 16,059 | |
Present value of minimum lease payments | $ 206,571 |
Lease liabilities - Additional
Lease liabilities - Additional information (Details) - CAD ($) | Jan. 31, 2020 | Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 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 | $ 15,790 | $ 843 | $ 48,992 | $ 843 |
Derivative liability - Changes
Derivative liability - Changes in fair values of the derivative liability (Details) | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2020$ / shares | Jun. 30, 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 | 2,912,203 | 2,926,392 | |
Balance, ending | $ 9,984,337 | $ 7,072,134 | |
Warrants Issuance Price Per Share | $ / shares | $ 0.50 | ||
Warrants Price Per Share | $ / shares | $ 0.85 |
Share capital - Changes in opti
Share capital - Changes in options (Details) - Stock options | 6 Months Ended |
Jun. 30, 2020$ / sharesshares | |
Disclosure of classes of share capital [line items] | |
Number of options, Options outstanding, beginning | shares | 12,908,315 |
Number of options, Options exercised | shares | (25,000) |
Number of options, Options expired and forfeited | shares | (385,311) |
Number of options, Options outstanding, ending | shares | 12,498,004 |
Weighted average exercise price, Options outstanding, beginning | $ / shares | $ 2.07 |
Weighted average exercise price, Options exercised | $ / shares | 0.30 |
Weighted average exercise price, Options expired and forfeited | $ / shares | 2.44 |
Weighted average exercise price, Options outstanding, ending | $ / shares | $ 2.06 |
Share capital - Options outstan
Share capital - Options outstanding (Details) - Stock options | 6 Months Ended | |
Jun. 30, 2020$ / sharesshares | Jun. 30, 2020$ / sharesshares | |
Disclosure of classes of share capital [line items] | ||
Number of options outstanding | 12,498,004 | 12,498,004 |
Number of options exercisable | 8,063,039 | 8,063,039 |
Exercise price $ 0.30 | ||
Disclosure of classes of share capital [line items] | ||
Exercise price | $ / shares | $ 0.30 | |
Weighted average contractual life | 1 year 11 months 9 days | |
Number of options outstanding | 2,250,000 | 2,250,000 |
Number of options exercisable | 2,250,000 | 2,250,000 |
Exercise price $ 0.80 | ||
Disclosure of classes of share capital [line items] | ||
Exercise price | $ / shares | $ 0.80 | |
Weighted average contractual life | 2 years 22 days | |
Number of options outstanding | 621,013 | 621,013 |
Number of options exercisable | 621,013 | 621,013 |
Exercise price $ 2.00 | ||
Disclosure of classes of share capital [line items] | ||
Exercise price | $ / shares | $ 2 | |
Weighted average contractual life | 2 years 1 month 28 days | |
Number of options outstanding | 282,076 | 282,076 |
Number of options exercisable | 257,160 | 257,160 |
Exercise price $ 1.53 USD | ||
Disclosure of classes of share capital [line items] | ||
Exercise price | $ / shares | $ 1.53 | |
Weighted average contractual life | 3 years 4 months 21 days | |
Number of options outstanding | 120,000 | 120,000 |
Number of options exercisable | 120,000 | 120,000 |
Exercise Price $1.80 USD | ||
Disclosure of classes of share capital [line items] | ||
Exercise price | $ / shares | $ 1.80 | |
Weighted average contractual life | 6 years 3 months 18 days | |
Number of options outstanding | 120,000 | 120,000 |
Number of options exercisable | 80,000 | 80,000 |
Exercise Price $1.91 USD | ||
Disclosure of classes of share capital [line items] | ||
Exercise price | $ / shares | $ 1.91 | |
Weighted average contractual life | 6 years 5 months 9 days | |
Number of options outstanding | 5,106,250 | 5,106,250 |
Number of options exercisable | 1,611,865 | 1,611,865 |
Exercise price $ 2.45 USD | ||
Disclosure of classes of share capital [line items] | ||
Exercise price | $ / shares | $ 2.45 | |
Weighted average contractual life | 6 years 1 month 6 days | |
Number of options outstanding | 1,250,000 | 1,250,000 |
Number of options exercisable | 1,145,833 | 1,145,833 |
Exercise Price $2.53 USD | ||
Disclosure of classes of share capital [line items] | ||
Exercise price | $ / shares | $ 2.53 | |
Weighted average contractual life | 6 years 1 month 10 days | |
Number of options outstanding | 131,818 | 131,818 |
Number of options exercisable | 120,824 | 120,824 |
Exercise price $ 2.62 USD | ||
Disclosure of classes of share capital [line items] | ||
Exercise price | $ / shares | $ 2.62 | |
Weighted average contractual life | 1 year 11 months 27 days | |
Number of options outstanding | 700,000 | 700,000 |
Number of options exercisable | 21,875 | 21,875 |
Exercise price $ 3.40 USD | ||
Disclosure of classes of share capital [line items] | ||
Exercise price | $ / shares | $ 3.40 | |
Weighted average contractual life | 4 years 11 months 9 days | |
Number of options outstanding | 1,228,182 | 1,228,182 |
Number of options exercisable | 1,228,182 | 1,228,182 |
Exercise price $ 5.00 USD | ||
Disclosure of classes of share capital [line items] | ||
Exercise price | $ / shares | $ 5 | |
Weighted average contractual life | 2 years 1 month 10 days | |
Number of options outstanding | 352,834 | 352,834 |
Number of options exercisable | 352,834 | 352,834 |
Exercise price $ 6.18 USD | ||
Disclosure of classes of share capital [line items] | ||
Exercise price | $ / shares | $ 6.18 | |
Weighted average contractual life | 1 year 6 months 26 days | |
Number of options outstanding | 160,939 | 160,939 |
Number of options exercisable | 134,901 | 134,901 |
Exercise price $ 9.60 USD | ||
Disclosure of classes of share capital [line items] | ||
Exercise price | $ / shares | $ 9.60 | |
Weighted average contractual life | 4 years 2 months 5 days | |
Number of options outstanding | 174,892 | 174,892 |
Number of options exercisable | 118,552 | 118,552 |
Share capital - The changes in
Share capital - The changes in warrants (Details) - Warrants - $ / shares | 6 Months Ended | 12 Months Ended |
Jun. 30, 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 | (187,500) | (1,116,322) |
Number of warrants expired | 0 | (650,000) |
Number of warrants, Warrants outstanding, ending | 20,415,896 | 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 | 0.80 | 3.26 |
Weighted average exercise price, Warrants expired | 0 | |
Weighted average exercise price, Warrants outstanding, ending | $ 4.68 | $ 4.64 |
Share capital - Warrants outsta
Share capital - Warrants outstanding (Details) - Warrants | 6 Months Ended | |||
Jun. 30, 2020$ / sharesshares | Jun. 30, 2020$ / sharesshares | Dec. 31, 2019shares | Dec. 31, 2018shares | |
Disclosure of classes of share capital [line items] | ||||
Weighted average contractual life | 2 years 3 months 18 days | |||
Number of warrants outstanding | shares | 20,415,896 | 20,415,896 | 20,603,396 | 22,369,718 |
Non-Transferable Warrants $0.80 CAD - $16.00 CAD | ||||
Disclosure of classes of share capital [line items] | ||||
Weighted average contractual life | 1 year 3 months 29 days | |||
Number of warrants outstanding | shares | 10,822,559 | 10,822,559 | ||
Non-Transferable Warrants $0.80 CAD - $16.00 CAD | Minimum | ||||
Disclosure of classes of share capital [line items] | ||||
Exercise price | $ 0.80 | |||
Non-Transferable Warrants $0.80 CAD - $16.00 CAD | Maximum | ||||
Disclosure of classes of share capital [line items] | ||||
Exercise price | $ 16 | |||
Non-Transferable Warrants $2.00 USD - $24.00 USD | ||||
Disclosure of classes of share capital [line items] | ||||
Weighted average contractual life | 3 years 7 months 24 days | |||
Number of warrants outstanding | shares | 5,091,969 | 5,091,969 | ||
Non-Transferable Warrants $2.00 USD - $24.00 USD | Minimum | ||||
Disclosure of classes of share capital [line items] | ||||
Exercise price | $ 2 | |||
Non-Transferable Warrants $2.00 USD - $24.00 USD | Maximum | ||||
Disclosure of classes of share capital [line items] | ||||
Exercise price | 24 | |||
Transferable Warrants $4.25 USD | ||||
Disclosure of classes of share capital [line items] | ||||
Exercise price | $ 4.25 | |||
Weighted average contractual life | 3 years 1 month 10 days | |||
Number of warrants outstanding | shares | 4,501,368 | 4,501,368 |
Share capital - Additional Info
Share capital - Additional Information (Details) | Jul. 14, 2020USD ($)shares | Jun. 25, 2020CAD ($)$ / sharesshares | Jun. 16, 2020CAD ($)$ / sharesshares | Jun. 10, 2020USD ($)$ / sharesshares | Jun. 10, 2020CAD ($)shares | Nov. 09, 2018shares | Jun. 04, 2020USD ($)shares | Jun. 04, 2020CAD ($)shares | Jun. 30, 2020CAD ($)shares | Mar. 31, 2020CAD ($)shares | Jun. 30, 2019CAD ($)shares | Mar. 31, 2019CAD ($)shares | Jun. 30, 2020CAD ($)$ / sharesshares | Jun. 30, 2019CAD ($)$ / sharesshares | Jul. 13, 2020USD ($) | Mar. 27, 2020USD ($)$ / shares | Dec. 31, 2019shares | Dec. 31, 2018shares |
Disclosure of classes of share capital [line items] | ||||||||||||||||||
Shares issued pursuant to exercise of warrants | $ | $ 150,000 | $ 145,153 | $ 4,657,266 | |||||||||||||||
Shares issued for stock option exercised | $ | $ 7,500 | $ 35,008 | ||||||||||||||||
Weighted average number of common shares outstanding | shares | 46,036,494 | 36,909,154 | 41,543,016 | 34,987,274 | ||||||||||||||
Stock-based compensation expense | $ | $ 1,415,524 | $ 551,035 | $ 3,950,082 | $ 2,551,027 | ||||||||||||||
Increase (decrease) in number of shares outstanding | shares | 4,412,804 | 25,000 | 187,500 | 4,250,000 | ||||||||||||||
Share issued price | $ / shares | $ 0.30 | $ 0.80 | ||||||||||||||||
Proceeds from issuing shares | $ 15,926,266 | $ 150,000 | ||||||||||||||||
Share issue related cost | $ 478,140 | $ 2,890,382 | $ 73,330 | $ 10,425 | $ 1,364,808 | |||||||||||||
Gross proceeds from exercise of options | $ | $ 7,500 | |||||||||||||||||
Consultant [Member] | ||||||||||||||||||
Disclosure of classes of share capital [line items] | ||||||||||||||||||
Increase (decrease) in number of shares outstanding | shares | 15,920,865 | 15,920,865 | ||||||||||||||||
Investors [Member] | ||||||||||||||||||
Disclosure of classes of share capital [line items] | ||||||||||||||||||
Par value per share | $ / shares | $ 0 | |||||||||||||||||
Maximum aggregate offering price | $ | $ 59,500,000 | $ 30,000,000 | ||||||||||||||||
Increase (decrease) in number of shares outstanding | shares | 10,000,000 | 10,000,000 | ||||||||||||||||
Employee Stock Options Exercise [Member] | ||||||||||||||||||
Disclosure of classes of share capital [line items] | ||||||||||||||||||
Share issue related cost | $ 1,350,000 | $ 1,834,286 | $ 1,129,425 | |||||||||||||||
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 | $ / shares | $ 0 | $ 3.46 | ||||||||||||||||
Share capital | ||||||||||||||||||
Disclosure of classes of share capital [line items] | ||||||||||||||||||
Number of shares issued | shares | 63,182,739 | 63,182,739 | 37,049,374 | |||||||||||||||
Number of shares outstanding | shares | 63,182,739 | 37,056,874 | 36,959,810 | 36,804,997 | 63,182,739 | 36,959,810 | 37,049,374 | 32,332,343 | ||||||||||
Shares issued pursuant to exercise of warrants | $ | $ 150,000 | $ 145,153 | $ 4,657,266 | |||||||||||||||
Number of shares issued for stock option exercised | shares | 25,000 | 43,760 | ||||||||||||||||
Shares issued for stock option exercised | $ | $ 13,004 | $ 47,539 | ||||||||||||||||
Share issued price | $ / shares | $ 2 | |||||||||||||||||
Proceeds from issuing shares | $ 20,000,000 | $ 27,174,615 | $ 18,489,939 | $ 25,257,514 | ||||||||||||||
Share issue related cost | $ | $ 2,890,382 | $ 73,330 | $ 10,425 | $ 1,364,808 |
General and administrative ex_3
General and administrative expenses (Details) - CAD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
General and administrative expenses | ||||
Rent | $ 90,119 | $ 73,609 | $ 207,365 | $ 195,484 |
Office expenses | 249,746 | 417,795 | 773,087 | 774,339 |
Legal and professional | 730,555 | 316,179 | 1,200,010 | 821,702 |
Consulting fees | 377,360 | 402,027 | 773,878 | 838,603 |
Investor relations | 77,490 | 62,171 | 219,851 | 208,702 |
Salaries | 620,677 | 319,882 | 1,183,576 | 665,508 |
General and administrative expenses | $ 2,145,947 | $ 1,591,663 | $ 4,357,767 | $ 3,504,338 |
Research and development expe_3
Research and development expenses (Details) - CAD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Research and development expenses | ||||
Labour | $ 1,223,260 | $ 1,151,195 | $ 2,457,804 | $ 2,341,224 |
Materials | 691,858 | 1,145,503 | 988,860 | 1,599,029 |
Government grants | (381,193) | (381,193) | ||
Research and development expenses | $ 1,915,118 | $ 1,915,505 | $ 3,446,664 | $ 3,559,060 |
Sales and marketing expenses (D
Sales and marketing expenses (Details) - CAD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Sales and marketing expenses | ||||
Consulting | $ 159,687 | $ 96,976 | $ 260,415 | $ 223,829 |
Marketing | 129,030 | 170,761 | 177,176 | 288,143 |
Salaries | 123,339 | 172,801 | 324,692 | 300,566 |
Total sales and marketing expenses | $ 412,056 | $ 440,538 | $ 762,283 | $ 812,538 |
Other Income (Details)
Other Income (Details) - CAD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Paycheck Protection Program Loan | ||||
Other Income | ||||
Other income | $ 185,284 | $ 185,284 | ||
Industrial Research Assistance Program Funding | ||||
Other Income | ||||
Other income | 243,936 | 243,936 | ||
Canada Emergency Wage Subsidy | ||||
Other Income | ||||
Other income | $ 79,834 | 79,834 | ||
Miscellaneous income | ||||
Other Income | ||||
Other income | $ 14,383 | $ 10,141 | $ 53,928 |
Other Income - Additional Infor
Other Income - Additional Information (Details) | May 21, 2020USD ($)item | Jun. 30, 2020CAD ($) | Jun. 30, 2020CAD ($) |
Paycheck Protection Program Loan | |||
Other income | |||
Borrowings | $ 133,700 | ||
Loan bears interest | 1.00% | ||
Loan matures | 24 months | ||
Payments of principal and interest on monthly | item | 18 | ||
Industrial Research Assistance Program Funding | |||
Other income | |||
Other income | $ 243,936 | $ 243,936 | |
Canada Emergency Wage Subsidy | |||
Other income | |||
Other income | $ 79,834 | $ 79,834 |
Segmented information (Details)
Segmented information (Details) - CAD ($) | 3 Months Ended | 6 Months Ended | |||||
Jun. 30, 2020 | Mar. 31, 2020 | Jun. 30, 2019 | Mar. 31, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | |
Disclosure of operating segments [line items] | |||||||
Revenues | $ 16,676 | $ 159,862 | $ 133,489 | $ 261,266 | |||
Gross loss | (22,146) | (6,790) | (72,428) | (1,538) | |||
Operating expenses | 6,100,203 | 4,931,140 | 12,961,983 | 11,202,885 | |||
Income tax | 2,140 | 1,076 | 2,140 | ||||
Income tax recovery | 4,675 | (6,419) | (27,275) | (49,175) | |||
Net (income)/loss | (12,936,345) | $ (1,908,181) | 3,281,362 | $ (20,629,865) | (14,844,526) | (17,348,503) | |
Inventory | 1,309,658 | 1,309,658 | $ 750,151 | ||||
Plant and equipment | 9,879,971 | 9,879,971 | 9,990,542 | ||||
Electric Vehicles | |||||||
Disclosure of operating segments [line items] | |||||||
Revenues | 0 | ||||||
Gross loss | 0 | ||||||
Operating expenses | 6,038,572 | 4,851,399 | 12,838,933 | 11,010,624 | |||
Other items | 6,918,555 | (8,214,577) | 1,889,120 | 6,188,326 | |||
Income tax/(recovery) | 2,140 | 2,140 | |||||
Net (income)/loss | 12,957,127 | (3,361,038) | 14,728,053 | 17,201,090 | |||
Inventory | 689,884 | 689,884 | 307,225 | ||||
Plant and equipment | 9,499,568 | 9,499,568 | 9,580,326 | ||||
Custom Built Vehicles | |||||||
Disclosure of operating segments [line items] | |||||||
Revenues | 16,676 | 159,862 | 133,489 | 261,266 | |||
Gross loss | (22,146) | (6,790) | (72,428) | (1,538) | |||
Operating expenses | 61,631 | 79,741 | 123,050 | 192,261 | |||
Other items | (109,234) | (436) | (52,806) | 2,789 | |||
Income tax/(recovery) | 4,675 | (6,419) | (26,199) | (49,175) | |||
Net (income)/loss | (20,782) | $ 79,676 | 116,473 | $ 147,413 | |||
Inventory | 619,774 | 619,774 | 442,926 | ||||
Plant and equipment | $ 380,403 | $ 380,403 | $ 410,216 |
Segmented information - Additio
Segmented information - Additional Information (Details) | 6 Months Ended |
Jun. 30, 2020segment | |
Segmented information | |
Number of reportable business segments | 2 |
Related party transactions - Am
Related party transactions - Amounts due to related parties (Details) - CAD ($) | Jun. 30, 2020 | Dec. 31, 2019 |
Disclosure of transactions between related parties [line items] | ||
Amounts due to related parties | $ 33,225 | $ 277,588 |
Shareholder loan | ||
Disclosure of transactions between related parties [line items] | ||
Amounts due to related parties | 0 | 2,076 |
Due to related parties | ||
Disclosure of transactions between related parties [line items] | ||
Amounts due to related parties | $ 33,225 | $ 275,512 |
Related party transactions-Key
Related party transactions-Key management personnel compensation (Details) - CAD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Related party transactions | ||||
Consulting fees | $ 62,502 | $ 118,398 | $ 125,004 | $ 236,796 |
Salary | 303,898 | 154,667 | 604,765 | 298,667 |
Directors fees | 108,087 | 77,928 | 248,917 | 160,478 |
Stock-based compensation | 1,381,681 | 308,626 | 3,841,448 | 1,956,146 |
Key management personnel compensation | $ 1,856,168 | $ 659,619 | $ 4,820,134 | $ 2,652,087 |
Financial instruments and fin_3
Financial instruments and financial risk management - Analysis of the contractual maturities (Details) - CAD ($) | Jun. 30, 2020 | Dec. 31, 2019 |
Less than one year | ||
Financial instruments and financial risk management | ||
Total non-derivative financial liabilities | $ 919,040 | $ 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 and accrued liabilities | Less than one year | ||
Financial instruments and financial risk management | ||
Total non-derivative financial liabilities | 656,681 | 693,502 |
Trade payables and accrued liabilities | Between one and five years | ||
Financial instruments and financial risk management | ||
Total non-derivative financial liabilities | 0 | 0 |
Trade payables and accrued liabilities | 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 | 229,134 | 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 |
Due to related parties | Less than one year | ||
Financial instruments and financial risk management | ||
Total non-derivative financial liabilities | 33,225 | 275,512 |
Due to related parties | Between one and five years | ||
Financial instruments and financial risk management | ||
Total non-derivative financial liabilities | 0 | 0 |
Due to related parties | 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 | 0 | 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 |
Financial instruments and fin_4
Financial instruments and financial risk management - Statement of financial position (Details) - CAD ($) | Jun. 30, 2020 | Dec. 31, 2019 |
Financial instruments and financial risk management | ||
Financial assets and liabilities | $ 50,074,734 | $ 10,724,090 |
Cash and cash equivalents | ||
Financial instruments and financial risk management | ||
Financial assets and liabilities | 50,496,901 | 10,555,007 |
Restricted cash | ||
Financial instruments and financial risk management | ||
Financial assets and liabilities | 85,923 | 81,981 |
Trade receivable | ||
Financial instruments and financial risk management | ||
Financial assets and liabilities | 84,397 | 192,998 |
Trade payables and accrued liabilities | ||
Financial instruments and financial risk management | ||
Financial assets and liabilities | $ (592,487) | $ (105,896) |
Financial instruments and fin_5
Financial instruments and financial risk management - Financial liabilities (Details) - CAD ($) | Jun. 30, 2020 | Dec. 31, 2019 |
Financial instruments and financial risk management | ||
Financial assets | $ 51,585,100 | $ 11,424,553 |
Financial liabilities | 10,903,377 | 9,202,436 |
Cash and cash equivalents | ||
Financial instruments and financial risk management | ||
Financial assets | 51,252,752 | 11,095,848 |
Restricted cash | ||
Financial instruments and financial risk management | ||
Financial assets | 188,463 | 184,314 |
Receivables | ||
Financial instruments and financial risk management | ||
Financial assets | 143,885 | 144,391 |
Non-derivative financial liabilities | Trade payable and accrued liabilities | ||
Financial instruments and financial risk management | ||
Financial liabilities | 919,040 | 2,128,226 |
Non-derivative financial liabilities | Shareholder loan | ||
Financial instruments and financial risk management | ||
Financial liabilities | 0 | 2,076 |
Derivative financial liabilities | Derivative liability | ||
Financial instruments and financial risk management | ||
Financial liabilities | $ 9,984,337 | $ 7,072,134 |
Financial instruments and fin_6
Financial instruments and financial risk management - Additional information (Details) - CAD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Disclosure of risk management strategy related to hedge accounting [line items] | ||||
Impact of net loss | $ 418,068 | $ 319,359 | $ (504,031) | $ 666,569 |
Percentage of volatility used was increased | 10.00% | |||
Derivative liability | $ 568,461 | $ 620,024 | $ 568,461 | 620,024 |
Interest rate risk | ||||
Disclosure of risk management strategy related to hedge accounting [line items] | ||||
Impact of net loss | $ 495,842 | 185,498 | ||
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 | $ 5,007,473 | $ 1,983,111 |
Subsequent event - Additional I
Subsequent event - Additional Information (Details) | Jul. 14, 2020USD ($)shares | Jul. 07, 2020$ / sharesshares | Jul. 01, 2020USD ($)$ / sharesshares | Jul. 01, 2020CAD ($)$ / sharesshares | Jun. 25, 2020CAD ($)$ / sharesshares | Jun. 16, 2020CAD ($)$ / sharesshares | Jun. 10, 2020shares | Nov. 09, 2018shares | Jun. 30, 2020CAD ($) | Mar. 31, 2020CAD ($) | Jun. 30, 2019CAD ($) | Mar. 31, 2019CAD ($) | Jul. 13, 2020USD ($) | Mar. 27, 2020USD ($) |
Disclosure of non-adjusting events after reporting period [line items] | ||||||||||||||
Number of common shares issued | shares | 4,412,804 | 25,000 | 187,500 | 4,250,000 | ||||||||||
Share issued price | $ / shares | $ 0.30 | $ 0.80 | ||||||||||||
Gross proceeds from issuance | $ 15,926,266 | $ 150,000 | ||||||||||||
Gross proceeds from exercise of options | $ | $ 7,500 | |||||||||||||
Share issuance costs and fees | $ 478,140 | $ 2,890,382 | $ 73,330 | $ 10,425 | $ 1,364,808 | |||||||||
Investors [Member] | ||||||||||||||
Disclosure of non-adjusting events after reporting period [line items] | ||||||||||||||
Maximum aggregate offering price | $ | $ 59,500,000 | $ 30,000,000 | ||||||||||||
Number of common shares issued | shares | 10,000,000 | |||||||||||||
Share transaction | ||||||||||||||
Disclosure of non-adjusting events after reporting period [line items] | ||||||||||||||
Number of common shares issued | shares | 28,517 | 1,232,500 | 1,232,500 | |||||||||||
Share issued price | $ / shares | $ 3.20 | $ 2.56 | ||||||||||||
Number Of Warrants Exercised | shares | 75,315 | |||||||||||||
Gross proceeds from issuance | $ | $ 3,155,200 | |||||||||||||
Share transaction | Investors [Member] | ||||||||||||||
Disclosure of non-adjusting events after reporting period [line items] | ||||||||||||||
Number of common shares issued | shares | 81,250 | 81,250 | ||||||||||||
Gross proceeds from issuance | $ | $ 182,500 | |||||||||||||
Share transaction | Investors [Member] | Minimum | ||||||||||||||
Disclosure of non-adjusting events after reporting period [line items] | ||||||||||||||
Share issued price | $ / shares | $ 2 | |||||||||||||
Share transaction | Investors [Member] | Maximum | ||||||||||||||
Disclosure of non-adjusting events after reporting period [line items] | ||||||||||||||
Share issued price | $ / shares | $ 4 | |||||||||||||
Share transaction | Investors One [Member] | ||||||||||||||
Disclosure of non-adjusting events after reporting period [line items] | ||||||||||||||
Number of common shares issued | shares | 135,171 | 135,171 | ||||||||||||
Gross proceeds from exercise of options | $ | $ 88,644 | |||||||||||||
Share transaction | Investors One [Member] | Minimum | ||||||||||||||
Disclosure of non-adjusting events after reporting period [line items] | ||||||||||||||
Share issued price | $ / shares | $ 0.30 | |||||||||||||
Share transaction | Investors One [Member] | Maximum | ||||||||||||||
Disclosure of non-adjusting events after reporting period [line items] | ||||||||||||||
Share issued price | $ / shares | $ 2 |