Document and Entity Information
Document and Entity Information | 9 Months Ended |
Sep. 30, 2022 | |
Document Information [Line Items] | |
Document Type | 6-K |
Document Period End Date | Sep. 30, 2022 |
Entity Registrant Name | ELECTRAMECCANICA VEHICLES CORP. |
Entity Central Index Key | 0001637736 |
Current Fiscal Year End Date | --12-31 |
Document Fiscal Year Focus | 2022 |
Document Fiscal Period Focus | Q3 |
Amendment Flag | false |
Interim Condensed Unaudited Con
Interim Condensed Unaudited Consolidated Statements of Financial Position - USD ($) | Sep. 30, 2022 | Dec. 31, 2021 |
Current assets | ||
Cash and cash equivalents | $ 153,883,279 | $ 221,928,008 |
Receivables | 105,173 | 372,021 |
Prepaid expenses | 17,087,673 | 14,428,117 |
Inventory | 8,837,366 | 3,580,450 |
Total Current assets | 179,913,491 | 240,308,596 |
Non-current assets | ||
Restricted cash | 513,527 | 291,676 |
Long-term deposit | 1,347,392 | 1,161,000 |
Plant and equipment | 19,654,388 | 8,386,478 |
Right-of-use assets | 8,951,938 | 1,737,409 |
Goodwill and other intangible assets | 962,593 | 965,539 |
TOTAL ASSETS | 211,343,329 | 252,850,698 |
Current liabilities | ||
Trade payables and accrued liabilities | 5,181,275 | 6,810,781 |
Customer deposits | 309,625 | 489,040 |
Construction contract liability | 215 | 161,879 |
Current portion of lease liabilities | 1,283,443 | 392,279 |
Total Current Liabilities | 6,774,558 | 7,853,979 |
Non-current liabilities | ||
Derivative liabilities | 155,530 | 244,565 |
Lease liabilities | 16,590,390 | 1,494,992 |
Deferred revenue | 119,253 | 119,253 |
TOTAL LIABILITIES | 23,639,731 | 9,712,789 |
EQUITY | ||
Share capital | 373,398,080 | 372,278,512 |
Deficit | (211,327,080) | (151,653,994) |
Reserves | 25,632,598 | 22,513,391 |
TOTAL EQUITY | 187,703,598 | 243,137,909 |
TOTAL LIABILITIES AND EQUITY | $ 211,343,329 | $ 252,850,698 |
Interim Condensed Unaudited C_2
Interim Condensed Unaudited Consolidated Statements of Loss and Comprehensive Loss - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Interim Condensed Unaudited Consolidated Statements of Loss and Comprehensive Loss | ||||
Revenue | $ 1,440,149 | $ 110,139 | $ 4,025,507 | $ 592,524 |
Cost of revenue | 2,395,217 | 110,653 | 8,767,956 | 579,963 |
Gross profit / (loss) | (955,068) | (514) | (4,742,449) | 12,561 |
Operating expenses | ||||
General and administrative expenses | 11,274,408 | 9,051,062 | 29,650,515 | 22,113,287 |
Research and development expenses | 6,542,030 | 5,435,294 | 16,827,395 | 12,318,938 |
Sales and marketing expenses | 3,171,797 | 2,679,036 | 9,096,055 | 7,002,352 |
Total operating expenses | 20,988,235 | 17,165,392 | 55,573,965 | 41,434,577 |
Operating loss | (21,943,303) | (17,165,906) | (60,316,414) | (41,422,016) |
Other items | ||||
Interest income | (764,083) | (68,702) | (1,090,016) | (273,833) |
Interest expense | 455,136 | 16,512 | 764,170 | 51,530 |
Changes in fair value of derivative liabilities | (41,396) | (4,178,638) | (312,142) | (16,436,023) |
Other (income) / expenses | (17,913) | (99,484) | (31,561) | (191,854) |
Foreign exchange (gain) / loss | (30,244) | 11,804 | 25,374 | (97,239) |
Loss before taxes | (21,544,803) | (12,847,398) | (59,672,239) | (24,474,597) |
Current income tax expense | 847 | 850 | ||
Net loss | (21,544,803) | (12,847,398) | (59,673,086) | (24,475,447) |
Other comprehensive income/(loss) | 35,015 | 17,688 | 41,360 | 3,355 |
Comprehensive Loss | $ (21,509,788) | $ (12,829,710) | $ (59,631,726) | $ (24,472,092) |
Loss Per share - basic | $ (0.18) | $ (0.11) | $ (0.50) | $ (0.22) |
Loss per share - fully diluted | $ (0.18) | $ (0.11) | $ (0.50) | $ (0.22) |
Weighted average number of shares outstanding - basic | 118,847,779 | 113,670,604 | 118,638,876 | 110,110,785 |
Weighted average number of shares outstanding - fully diluted | 118,847,779 | 113,670,604 | 118,638,876 | 110,110,785 |
Interim Condensed Unaudited C_3
Interim Condensed Unaudited Consolidated Statements of Changes in Equity - USD ($) | Share capital | Share-based payment reserve | Foreign Currency Translation Reserve | Deficit | Total |
Beginning balance at Dec. 31, 2020 | $ 212,058,836 | $ 16,446,400 | $ 4,501,213 | $ (110,327,159) | $ 122,679,290 |
Beginning balance, shares at Dec. 31, 2020 | 89,309,563 | ||||
Effect of change in functional currency | $ (14,539,226) | (14,539,226) | |||
Ending balance at Jan. 01, 2021 | $ 197,519,610 | 16,446,400 | 4,501,213 | (110,327,159) | 108,140,064 |
Ending balance, shares at Jan. 01, 2021 | 89,309,563 | ||||
Beginning balance at Dec. 31, 2020 | $ 212,058,836 | 16,446,400 | 4,501,213 | (110,327,159) | 122,679,290 |
Beginning balance, shares at Dec. 31, 2020 | 89,309,563 | ||||
Shares issued for cash | $ 142,493,563 | 142,493,563 | |||
Shares issued for cash (in shares) | 20,365,495 | ||||
Shares issued pursuant to exercise of warrants | $ 16,802,299 | (1,164) | 16,801,135 | ||
Shares issued pursuant to exercise of warrants (in shares) | 2,195,640 | ||||
Stock-based compensation | 1,462,866 | 1,462,866 | |||
Net loss for the period | (180,664) | (180,664) | |||
Foreign currency translation reserve | (7,859) | (7,859) | |||
Ending balance at Mar. 31, 2021 | $ 357,542,725 | 17,630,308 | 4,493,354 | (110,507,823) | 269,158,564 |
Ending balance, shares at Mar. 31, 2021 | 112,929,422 | ||||
Beginning balance at Dec. 31, 2020 | $ 212,058,836 | 16,446,400 | 4,501,213 | (110,327,159) | 122,679,290 |
Beginning balance, shares at Dec. 31, 2020 | 89,309,563 | ||||
Effect of change in functional currency | 97,239 | ||||
Net loss for the period | (24,475,447) | ||||
Ending balance at Sep. 30, 2021 | $ 363,207,765 | 16,917,265 | 4,504,568 | (134,802,606) | 249,826,992 |
Ending balance, shares at Sep. 30, 2021 | 114,944,673 | ||||
Beginning balance at Jan. 01, 2021 | $ 197,519,610 | 16,446,400 | 4,501,213 | (110,327,159) | 108,140,064 |
Beginning balance, shares at Jan. 01, 2021 | 89,309,563 | ||||
Shares issued pursuant to exercise of options | $ 727,253 | (277,794) | 449,459 | ||
Shares issued pursuant to exercise of options (in shares) | 1,058,724 | ||||
Ending balance at Mar. 31, 2021 | $ 357,542,725 | 17,630,308 | 4,493,354 | (110,507,823) | 269,158,564 |
Ending balance, shares at Mar. 31, 2021 | 112,929,422 | ||||
Shares issuance costs | $ (2,887) | (2,887) | |||
Shares issued pursuant to exercise of warrants | $ 404,354 | 404,354 | |||
Shares issued pursuant to exercise of warrants (in shares) | 88,774 | ||||
Shares issued pursuant to exercise of options | $ 104,301 | (53,972) | 50,329 | ||
Shares issued pursuant to exercise of options (in shares) | 21,825 | ||||
Stock-based compensation | 1,720,483 | 1,720,483 | |||
Net loss for the period | (11,447,385) | (11,447,385) | |||
Foreign currency translation reserve | (6,474) | (6,474) | |||
Ending balance at Jun. 30, 2021 | $ 358,048,493 | 19,296,819 | 4,486,880 | (121,955,208) | 259,876,984 |
Ending balance, shares at Jun. 30, 2021 | 113,040,021 | ||||
Effect of change in functional currency | (11,804) | ||||
Shares issued for cash | $ (55,123) | (55,123) | |||
Shares issued pursuant to exercise of warrants | $ 1,682,416 | 1,682,416 | |||
Shares issued pursuant to exercise of warrants (in shares) | 405,000 | ||||
Shares issued pursuant to exercise of options | $ 3,115,294 | (2,469,544) | 645,750 | ||
Shares issued pursuant to exercise of options (in shares) | 1,375,400 | ||||
Shares issued pursuant to exercise of RSU | $ 397,060 | (582,334) | (185,274) | ||
Shares issued pursuant to exercise of RSU (in shares) | 118,497 | ||||
Shares issued pursuant to exercise of DSU | $ 19,625 | (39,250) | (19,625) | ||
Shares issued pursuant to exercise of DSU (in shares) | 5,755 | ||||
Transfer of DSU to liabilities | (112,915) | (112,915) | |||
Stock-based compensation | 824,489 | 824,489 | |||
Net loss for the period | (12,847,398) | (12,847,398) | |||
Foreign currency translation reserve | 17,688 | 17,688 | |||
Ending balance at Sep. 30, 2021 | $ 363,207,765 | 16,917,265 | 4,504,568 | (134,802,606) | 249,826,992 |
Ending balance, shares at Sep. 30, 2021 | 114,944,673 | ||||
Beginning balance at Dec. 31, 2021 | $ 372,278,512 | 18,011,591 | 4,501,800 | (151,653,994) | 243,137,909 |
Beginning balance, shares at Dec. 31, 2021 | 117,338,964 | ||||
Shares issued pursuant to exercise of warrants (in shares) | 1,245,455 | ||||
Shares issued pursuant to exercise of options | $ 346,206 | (50,690) | 295,516 | ||
Shares issued pursuant to exercise of options (in shares) | 1,245,455 | ||||
Shares issued pursuant to exercise of RSU | $ 224,557 | (245,343) | (20,786) | ||
Shares issued pursuant to exercise of RSU (in shares) | 27,077 | ||||
Stock-based compensation | 1,109,266 | 1,109,266 | |||
Net loss for the period | (17,831,537) | (17,831,537) | |||
Foreign currency translation reserve | (5,850) | (5,850) | |||
Ending balance at Mar. 31, 2022 | $ 372,849,275 | 18,824,824 | 4,495,950 | (169,485,531) | 226,684,518 |
Ending balance, shares at Mar. 31, 2022 | 118,611,496 | ||||
Beginning balance at Dec. 31, 2021 | $ 372,278,512 | 18,011,591 | 4,501,800 | (151,653,994) | 243,137,909 |
Beginning balance, shares at Dec. 31, 2021 | 117,338,964 | ||||
Effect of change in functional currency | (25,374) | ||||
Net loss for the period | (59,673,086) | ||||
Ending balance at Sep. 30, 2022 | $ 373,398,080 | 21,089,438 | 4,543,160 | (211,327,080) | 187,703,598 |
Ending balance, shares at Sep. 30, 2022 | 118,888,108 | ||||
Beginning balance at Mar. 31, 2022 | $ 372,849,275 | 18,824,824 | 4,495,950 | (169,485,531) | 226,684,518 |
Beginning balance, shares at Mar. 31, 2022 | 118,611,496 | ||||
Shares issued pursuant to exercise of options | $ 62,862 | (14,312) | 48,550 | ||
Shares issued pursuant to exercise of options (in shares) | 113,636 | ||||
Stock-based compensation | 1,548,437 | 1,548,437 | |||
Net loss for the period | (20,296,746) | (20,296,746) | |||
Foreign currency translation reserve | 12,195 | 12,195 | |||
Ending balance at Jun. 30, 2022 | $ 372,912,137 | 20,358,949 | 4,508,145 | (189,782,277) | 207,996,954 |
Ending balance, shares at Jun. 30, 2022 | 118,725,132 | ||||
Effect of change in functional currency | 30,244 | ||||
Shares issued pursuant to exercise of options | $ 6,795 | (1,018) | $ 5,777 | ||
Shares issued pursuant to exercise of options (in shares) | 25,000 | 137,976 | |||
Shares issued pursuant to exercise of RSU | $ 479,148 | (562,501) | $ (83,353) | ||
Shares issued pursuant to exercise of RSU (in shares) | 137,976 | ||||
Stock-based compensation | 1,294,008 | 1,294,008 | |||
Net loss for the period | (21,544,803) | (21,544,803) | |||
Foreign currency translation reserve | 35,015 | 35,015 | |||
Ending balance at Sep. 30, 2022 | $ 373,398,080 | $ 21,089,438 | $ 4,543,160 | $ (211,327,080) | $ 187,703,598 |
Ending balance, shares at Sep. 30, 2022 | 118,888,108 |
Interim Condensed Unaudited C_4
Interim Condensed Unaudited Consolidated Statements of Cash Flows - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Operating activities | ||||
Net loss for the period | $ (21,544,803) | $ (12,847,398) | $ (59,673,086) | $ (24,475,447) |
Adjustments for: | ||||
Amortization | 1,612,421 | 1,102,638 | 4,268,912 | 3,005,004 |
Stock-based compensation expense | 1,334,359 | 833,973 | 4,174,819 | 4,017,322 |
Interest (income) / expense | (308,947) | (52,190) | (328,374) | (222,303) |
Inventory provision | 306,085 | 3,118,581 | ||
Change in fair value of derivative liabilities | (41,396) | (4,178,638) | (312,142) | (16,436,023) |
Unrealized currency translation losses | 24,107 | 24,107 | ||
Changes in non-cash working capital items | ||||
Receivables | 96,910 | (4,718) | 266,850 | (282,242) |
Prepaid expenses and deposit | 122,917 | (2,942,644) | (5,233,291) | (10,266,438) |
Inventory | (1,343,259) | (2,699,611) | (9,079,654) | (2,668,847) |
Trade payables and accrued liabilities | (1,795,703) | (2,361,538) | (1,936,111) | (217,417) |
Customer deposits and construction contract liabilities | (211,205) | 192,888 | (341,078) | 215,392 |
Net cash flows used in operating activities | (21,748,514) | (22,957,238) | (65,050,467) | (47,330,999) |
Investing activities | ||||
Decrease/(increase) in restricted cash | 2,059 | (228,874) | (17,397) | |
Transfer/(purchase) of plant and equipment | (1,125,340) | 166,023 | (3,296,400) | (2,859,100) |
Net cash flows used in investing activities | (1,125,340) | 168,082 | (3,525,274) | (2,876,497) |
Financing activities | ||||
Interest income received | 764,000 | 94,410 | 1,094,195 | 495,138 |
Interest income received from net investment in sublease | 124 | 1,459 | ||
Interest paid on lease payments | (111,877) | (37,890) | (233,032) | (111,978) |
Repayment of leases | (138,715) | (209,452) | (531,897) | (560,295) |
Payment received from net investment in sublease | 9,876 | 38,541 | ||
Proceeds on issuance of common shares - net of issue costs | (55,123) | 142,435,553 | ||
Payment for RSU settlement | (83,353) | (185,274) | (104,139) | (185,274) |
Payment for DSU settlement | (19,625) | (19,625) | ||
Proceeds from issuance of common shares for options exercised | 5,777 | 645,750 | 349,843 | 1,145,538 |
Proceeds from issuance of common shares for warrants exercised | 1,313,167 | 6,327,694 | ||
Net cash flows from financing activities | 435,832 | 1,555,963 | 574,970 | 149,566,751 |
Increase / (decrease) in cash and cash equivalents | (22,438,022) | (21,233,193) | (68,000,771) | 99,359,255 |
Effect of exchange rate changes on cash | (50,302) | 17,688 | (43,958) | 3,355 |
Cash and cash equivalents, beginning | 176,371,603 | 250,028,791 | 221,928,008 | 129,450,676 |
Cash and cash equivalents, ending | $ 153,883,279 | $ 228,813,286 | $ 153,883,279 | $ 228,813,286 |
Nature and continuance of opera
Nature and continuance of operations | 9 Months Ended |
Sep. 30, 2022 | |
Nature and continuance of operations | |
Nature and continuance of operations | 1. Nature and continuance of operations 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 (“EV”s). The head office and principal address of the Company are located at 8057 North Fraser Way, Burnaby, BC, V5J 5M8. Our registered and records office is located at Suite 1500, 1055 West Georgia Street, P.O. Box 11117, Vancouver, British Columbia, Canada, V6E 4N7. These consolidated financial statements have been prepared on the assumption that the Company will continue in operation for the foreseeable future and will be able to realize assets and discharge liabilities in the ordinary course of operations. The Company’s principal activity is the development and manufacture of EVs. As at September 30, 2022, although the Company has commenced commercial production of the SOLO single seat EV, it is not able to finance day-to-day activities through operations. The Company’s continuation is dependent upon the successful results from its electric vehicle manufacturing activities and its ability to attain profitable operations and generate funds therefrom and/or raise equity capital or borrowings sufficient to meet current and future obligations. The Company began production and commenced commercial deliveries of its first SOLO EV in October 2021. It is anticipated that significant funding will be required. Management primarily intends to finance its operations over the next 12 months using the existing cash on hand, as well as through sales of the SOLO, private placements and/or public offerings of equity/debt capital. |
Significant accounting policies
Significant accounting policies and basis of preparation | 9 Months Ended |
Sep. 30, 2022 | |
Significant accounting policies and basis of preparation | |
Significant accounting policies and basis of preparation | 2. Significant accounting policies and basis of preparation The consolidated financial statements were authorized for issue on November 10, 2022 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, 2021. 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, 2021. Certain amounts in the prior year’s comparative figures have been reclassified to conform to the current year’s presentation. 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 and vehicles inventory which are measured at lower of cost and net realizable value. As at September 30, 2022, the Company’s functional and presentation currency is United States dollars (“USD”). Consolidation The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries, EMV Automotive USA Inc., from the date of its incorporation on January 22, 2018, Intermeccanica International Inc. (“InterMeccanica”), from the date of its acquisition on October 18, 2017, EMV Automotive Technology (Chongqing) Inc., from the date of its incorporation on October 15, 2019, SOLO EV, LLC, from the date of its incorporation on November 22, 2019, and ElectraMeccanica USA, LLC, from the date of its incorporation on March 19, 2021. 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 fair value measurements for financial instruments and share-based payments. 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 from the Company in completing its consolidated financial statements include: - the assessment of the Company’s ability to continue operations and whether there are events or conditions that may give rise to significant uncertainty; |
Prepaid expenses
Prepaid expenses | 9 Months Ended |
Sep. 30, 2022 | |
Prepaid expenses | |
Prepaid expenses | 3. Prepaid expenses September 30, 2022 December 31, 2021 Solo deposit $ 10,731,551 $ 4,734,914 Battery cell deposit 4,430,130 6,121,372 Battery deposit 100,207 100,207 Parts deposit 94,627 227,366 Prepaid insurance 98,390 2,027,001 Prepaid rent and security deposit 501,957 444,976 Other prepaid expenses 1,130,811 772,281 $ 17,087,673 $ 14,428,117 |
Inventory
Inventory | 9 Months Ended |
Sep. 30, 2022 | |
Inventory | |
Inventory | 4. Inventory September 30, 2022 December 31, 2021 Parts, battery, and accessories $ 1,925,200 $ 906,505 Work in progress — 128,424 Vehicles 11,717,317 4,232,736 Inventory provision (4,805,151) (1,687,215) $ 8,837,366 $ 3,580,450 For the three and nine months ended September 30, 2022, the amount of $306,085 and $3,118,581 of inventory write-down has been recognized as an expense, respectively (September 30, 2021 - $ Nil for |
Long-term deposit
Long-term deposit | 9 Months Ended |
Sep. 30, 2022 | |
Long-term deposit | |
Long-term deposit | 5. Long-term deposit September 30, 2022 December 31, 2021 Security deposit $ 1,161,000 $ 1,161,000 Deposit for facility construction and equipment 186,392 — $ 1,347,392 $ 1,161,000 As of September 30, 2022, a deposit amount of $186,392 (December 31, 2021 - $Nil) was made for purchasing of equipment and Mesa facility construction. |
Plant and equipment
Plant and equipment | 9 Months Ended |
Sep. 30, 2022 | |
Plant and equipment | |
Plant and equipment | 6. Plant and equipment Computer Furniture hardware Production and and Leasehold tooling equipment software Vehicles improvements and molds Total Cost: December 31, 2020 $ 477,823 $ 421,198 $ 1,384,597 $ 435,376 $ 7,613,969 $ 10,332,963 Additions 448,918 584,307 1,816,568 1,124,818 387,260 4,361,871 Disposal — (1,971) (894,316) — — (896,287) Foreign exchange translation difference 689 41 — 482 — 1,212 December 31, 2021 927,430 1,003,575 2,306,849 1,560,676 8,001,229 13,799,759 Additions 881,292 373,760 1,643,445 7,549,364 4,563,066 15,010,927 Disposal — — (393,669) — (56,285) (449,954) Foreign exchange translation difference (12,848) (476) — (5,721) — (19,045) September 30, 2022 $ 1,795,874 $ 1,376,859 $ 3,556,625 $ 9,104,319 $ 12,508,010 $ 28,341,687 Amortization: December 31, 2020 $ 309,321 $ 198,331 $ 294,672 $ 273,756 $ 893,909 $ 1,969,989 Additions 97,760 249,754 340,621 116,105 2,675,815 3,480,055 Disposal — (219) (38,022) — — (38,241) Foreign exchange translation difference 985 38 — 455 — 1,478 December 31, 2021 408,066 447,904 597,271 390,316 3,569,724 5,413,281 Additions 178,824 283,099 603,291 279,190 2,038,308 3,382,712 Disposal — — (90,252) — — (90,252) Foreign exchange translation difference (12,247) (476) — (5,719) — (18,442) September 30, 2022 $ 574,643 $ 730,527 $ 1,110,310 $ 663,787 $ 5,608,032 $ 8,687,299 Net book value: December 31, 2021 $ 519,364 $ 555,671 $ 1,709,578 $ 1,170,360 $ 4,431,505 $ 8,386,478 September 30, 2022 $ 1,221,231 $ 646,332 $ 2,446,315 $ 8,440,532 $ 6,899,978 $ 19,654,388 During the nine months ended September 30, 2022, vehicles with cost of $363,079 and accumulated depreciation of $86,853 were transferred to R&D usage and recorded on the statement of loss and comprehensive loss. During the nine months ended September 30, 2022, the Company had non-cash additions to leasehold improvements of $7,500,515 (September 30, 2021 - $Nil) pursuant to the completion of the Mesa facility work by the landlord. During the nine months ended September 30, 2022, the Company had non-cash additions to vehicles of $704,157 (September 30, 2021 - $Nil) upon change in the use of inventory vehicles. |
Trade payables and accrued liab
Trade payables and accrued liabilities | 9 Months Ended |
Sep. 30, 2022 | |
Trade payables and accrued liabilities | |
Trade payables and accrued liabilities | 7. Trade payables and accrued liabilities September 30, 2022 December 31, 2021 Trade payables $ 1,090,554 $ 1,249,861 Due to related parties (Note 15) — 743,100 Accrued liabilities 4,090,722 4,817,820 $ 5,181,276 $ 6,810,781 |
Leases
Leases | 9 Months Ended |
Sep. 30, 2022 | |
Leases. | |
Leases | 8. Leases The Company leases buildings for its engineering center and head office and, warehouse spaces and kiosk locations to promote vehicle sales. These leases generally span a period of one Set out below are the carrying amounts of right-of-use assets recognized and the movements during the period: Right-of-use assets Cost: December 31, 2020 $ 1,660,098 Additions 1,575,434 Foreign exchange translation difference 2,520 December 31, 2021 3,238,052 Additions 8,424,158 Disposal (524,568) Foreign exchange translation difference (658) September 30, 2022 $ 11,136,984 Amortization: December 31, 2020 $ 732,764 Additions 767,293 Foreign exchange translation difference 586 December 31, 2021 1,500,643 Additions 883,253 Disposal (198,623) Foreign exchange translation difference (227) September 30, 2022 $ 2,185,046 Net book value: December 31, 2021 $ 1,737,409 September 30, 2022 $ 8,951,938 The following tables reconcile the change in the lease liabilities and disclose a maturity analysis of the lease liabilities for the nine months ended September 30, 2022 and the year ended December 31, 2021: Balance as at December 31, 2020 $ 1,075,773 Lease addition 1,575,434 Accretion of lease liability 144,975 Repayment of principal and interest (908,911) Balance as at December 31, 2021 $ 1,887,271 Lease addition 16,426,759 Accretion of lease liability 765,768 Repayment of principal and interest (849,532) Lease modification (356,433) Balance as at September 30, 2022 $ 17,873,833 During the nine months ended September 30, 2022, the Company entered into a lease agreement for a storage and distribution premise in California for $25,711 a month for period of five years. As a result, the Company recognized right-of-use asset of $1,299,744 at the commencement of the lease. During the nine months ended September 30, 2022, the Company renewed an existing lease agreement for a kiosk location in Arizona for $12,500 a month for period of 33 months. As a result, the Company recognized right-of-use asset of $410,481 at the commencement of the lease. During the nine months ended September 30, 2022, the Company renewed an existing lease agreement for an office premise in Mesa Arizona for $15,813 a month for period of 13 months. As a result, the Company recognized right-of-use asset of $195,672 at the commencement of the lease. During the nine months ended September 30, 2022, the Company commenced a lease agreement for Mesa facility for period of 129.5 months. As a result, the Company recognized right-of-use asset of $6,518,261 and lease liability of $14,520,861 at the commencement of the lease. The Company incurred $275,408 and $1,037,180 of lease expenses for the three and nine months ended September 30, 2022, respectively (September 30, 2021 - $336,858 and $782,490 for the three and nine months respectively), for short-term leases and low-value leases which are not included in the measurement of lease liabilities. During the nine months ended September 30, 2022, the Company decided to not exercise its renewal options for two existing lease agreements expiring on July 31, 2022. The Company derecognized right-of-use assets with cost of $524,568 and accumulated depreciation of $198,623, lease liabilities of $356,433, and recorded a gain of $30,488 on disposal which is included in the other income in the statement of loss. Present value of Future minimum minimum lease At September 30, 2022 lease payments Interest payments Less than one year $ 2,142,683 $ 859,240 $ 1,283,443 Between one and five years 11,747,097 6,121,109 5,625,988 More than five years 15,711,180 4,746,778 10,964,402 $ 29,600,961 $ 11,727,127 $ 17,873,833 Current portion of lease liabilities 1,283,443 Non-current portion of lease liabilities $ 16,590,390 |
Derivative liabilities
Derivative liabilities | 9 Months Ended |
Sep. 30, 2022 | |
Derivative liabilities. | |
Derivative liabilities | 9. Derivative liabilities a) Warrants The exercise price of certain warrants is denominated in CAD; however the functional currency of the Company is USD. 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 derivative liabilities 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 loss and 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 loss and 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 10 for further information on warrants issued and outstanding). A reconciliation of the changes in fair values of the warrants derivative liabilities for the nine months ended September 30, 2022 and the year ended December 31, 2021 is below: September 30, 2022 December 31, 2021 Balance, beginning $ 191,203 $ 17,899,855 Decrease of derivative liabilities for warrants priced in USD per change in functional currency — (17,899,855) Recognize of derivative liabilities for warrants priced in CAD per change in functional currency — 32,439,081 Warrants exercised — (13,327,450) Changes in fair value of derivative liabilities (191,174) (18,920,428) Balance, ending $ 29 $ 191,203 The fair value of the non-transferrable warrants was calculated using the Black-Scholes Option Pricing Model. b) Deferred Stock Units Deferred Stock Units (“DSU’s) are stock-based awards that may be granted by the Company to certain eligible participants pursuant to its Stock Incentive Plan. During the year ended December 31, 2021, the Company changed the settlement intention by allowing the holders of the DSUs to settle the DSUs in cash or common shares. As a result, the entire DSU balance was reclassified from equity to DSU liability. During the nine months ended September 30, 2022, the Company issued 42,879 DSUs, which will vest over one year. At each reporting date, between the grant and settlement dates of DSUs, the fair value of the liability is re-measured with any changes in fair value recognized in net income (loss) for the period. The entire DSU balance is presented in long-term liabilities. The changes in DSUs during the nine months ended September 30, 2022 are as follows: Number of DSU Amount Balance, December 31, 2021 84,581 $ 53,362 Issuance 42,879 — Stock-based compensation expense — 223,107 Changes in fair value of derivative liabilities — (120,968) Balance, September 30, 2022 127,460 $ 155,501 |
Share capital
Share capital | 9 Months Ended |
Sep. 30, 2022 | |
Share capital. | |
Share capital | 10. Share capital Authorized share capital Unlimited number of common shares without par value. At September 30, 2022, the Company had 118,888,108 issued and outstanding shares On September 30, 2021, the Company contracted with Stifel, Nicolaus & Company, Incorporated and Roth Capital Partners, LLC (each, an “Agent”, and collectively, the “Agents”) to sell additional common shares having an aggregate offering price of up to $200,000,000 through the Agents (the “September Sales Agreement”). In accordance with the terms of the September Sales Agreement, the Company may offer and sell common 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 common shares may be offered and sold by any method permitted by law deemed to be an “at the market” offering (the “ATM Offering”) as defined in Rule 415 promulgated under the Securities Act, including sales made directly on or through the Nasdaq Capital Market on any other existing trading market for the common shares, and, if expressly authorized by the Company, in negotiated transactions. During the nine month ended September 30, 2022, the Company issued Nil common shares under the September Sales Agreement. During the three months ended March 31, 2022, the Company issued 1,245,455 common shares at CAD$0.30 per share for gross proceeds of CAD$373,637 (USD$297,564) pursuant to the exercise of certain stock options by a director. During the three months ended June 30, 2022, the Company issued 56,818 common shares at CAD$0.30 per share for gross proceeds of CAD$17,045 (USD$13,241) pursuant to the exercise of certain stock options by a former director. During the three months ended June 30, 2022, the Company issued 56,818 common shares at CAD$0.80 per share for gross proceeds of CAD$45,454 (USD$35,309) pursuant to the exercise of certain stock options by a former director. During the three months ended September 30, 2022, the Company issued 25,000 common shares at CAD$0.30 per share for gross proceeds of CAD$7,500 (USD$5,777) pursuant to the exercise of stock options. During the three months ended September 30, 2022, the Company issued 137,976 common shares pursuant to RSUs exercised by officers and increased share capital by $83,353. Basic and fully diluted loss per share The calculation of basic and fully diluted loss per share for the three and nine months ended September 30, 2022 was based on the net loss attributable to common shareholders of $21,544,803 and $59,673,086, respectively (September 30, 2021 – $12,847,398 and $24,475,447 for the three and nine months respectively) and the weighted average number of common shares outstanding of 118,847,779 and 118,638,876, respectively (September 30, 2021 – 113,670,604 and 110,110,785 for the three and nine months respectively). Fully diluted loss per share for the three and nine months ended September 30, 2022 did not include the effect of 12,616,414 stock options (September 30, 2021 – 10,252,227), 6,186,519 warrants (September 30, 2021 – 11,604,402), 127,460 DSUs (September 30, 2021 – 84,581) and 325,275 RSUs (September 30, 2021 – 649,473) as the effect would be anti-dilutive. Stock options The Company adopted its 2020 Stock Incentive Plan (the “Stock Incentive Plan”) on July 9, 2020, which provides that the Board of Directors of the Company may from time to time, in its discretion, grant to directors, officers, employees and consultants of the Company certain stock-based compensation awards including 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 stock options may be exercisable for a period of up to 10 years from the date of grant. Stock options may be exercised no later than 90 days following cessation of the optionee’s position with the Company unless any exercise extension has been approved in advance by the Plan Administrator. Stock options granted may vest based on terms and conditions set out in the stock option agreements themselves. On exercise, each stock option allows the holder to purchase one common share of the Company or to exchange common share of the Company without cash payment for the number of common shares calculated by a formula as set forth in the stock option agreement. The changes in stock options during the nine months ended September 30, 2022 and the year ended December 31, 2021 are as follows: September 30, 2022 December 31, 2021 Weighted Weighted Number of average exercise Number of average options price options exercise price Options outstanding, beginning 11,974,300 $ 2.73 13,008,364 $ 2.14 Options granted 2,908,849 1.83 3,217,378 3.94 Options exercised (1,384,091) 0.32 (3,785,174) 1.58 Options forfeited/expired/cancelled (882,644) 3.84 (466,268) 2.85 Options outstanding, ending 12,616,414 $ 2.71 11,974,300 $ 2.73 Details of stock options outstanding as at September 30, 2022 were as follows: Number of Weighted average Number of options options Exercise price contractual life outstanding exercisable $0.80 CAD 0.20 277,273 277,273 $2.00 CAD 1.55 80,214 80,214 $1.50 6.78 1,021,000 369,555 $1.91 5.14 2,955,000 2,649,446 $1.94 6.55 597,002 217,158 $2.13 6.35 115,466 49,506 $2.20 6.51 500,000 212,962 $2.45 3.85 1,250,000 1,250,000 $2.53 3.86 75,000 75,000 $2.62 0.98 700,000 700,000 $3.01 7.67 1,500,000 — $3.40 3.47 1,035,000 1,035,000 $3.41 4.81 772,729 619,638 $3.55 5.79 75,000 30,420 $3.56 6.12 247,393 124,909 $3.77 5.12 165,000 131,462 $4.15 8.57 755,000 607,080 $5.00 1.17 193,629 193,629 $7.23 5.28 101,721 75,061 $7.75 5.39 92,487 74,785 $9.60 2.18 107,500 107,500 12,616,414 8,880,598 The weighted average grant date fair value of stock options granted during the nine months ended September 30, 2022 was $0.95 (September 30, 2021 - $2.59). During the three and nine months ended September 30, 2022, the Company recognized stock-based compensation expense of $925,767 and $3,130,348, respectively (September 30, 2021 - $930,097 and $3,579,636 for the three and nine months, respectively) for stock options granted. Warrants On exercise, each warrant allows the holder to purchase one common share of the Company or to exchange common share of the Company without cash payment for the number of common shares calculated by the formula set forth in the warrant agreement. The changes in warrants during the nine months ended September 30, 2022 and the year ended December 31, 2021 are as follows: September 30, 2022 December 31, 2021 Weighted Weighted Number of average Number of average warrants exercise price warrants exercise price Warrants outstanding, beginning 7,402,021 $ 5.23 15,070,883 $ 4.01 Warrants exercised — — (4,270,005) 3.34 Warrants expired (1,215,502) 4.68 (3,398,857) 4.66 Warrants outstanding, ending 6,186,519 $ 5.34 7,402,021 $ 5.23 At September 30, 2022, all warrants outstanding were exercisable. Details of warrants outstanding as at September 30, 2022 are as follows: Weighted average Number of warrants Exercise Price contractual life outstanding Non-Transferable Warrants $12.00 CAD - $16.00 CAD 0.73 years 630,998 $2.56 USD - $15.00 USD 1.43 years 1,054,253 Transferable Warrants $4.25 USD 0.85 years 4,501,268 Warrants outstanding, ending 0.94 years 6,186,519 DSUs DSUs are stock-based awards that may be granted by the Company to certain eligible participants pursuant to its current Stock Incentive Plan. Each DSU will issue one common share of the Company or settle by equivalent cash to the holders of the DSU (Note 9). The changes in DSUs during the nine months ended September 30, 2022 and the year ended December 31, 2021 are as follows: September 30, 2022 December 31, 2021 Weighted average Weighted average Number of DSU fair value Number of DSU fair value DSUs outstanding, beginning 84,581 $ 3.41 44,623 $ 3.41 DSUs granted 42,879 2.24 51,468 3.41 DSUs exercised — — (11,510) 3.41 DSUs outstanding, ending 127,460 $ 3.02 84,581 $ 3.41 Details of DSUs outstanding as at September 30, 2022 are as follows: Weighted Number of average DSUs Number of DSUs Deemed value contractual life outstanding exercisable $ 3.02 8.84 127,460 127,460 During the three and nine months ended September 30, 2022, the Company recognized stock-based compensation expense of $40,351 and $223,107, respectively (September 30, 2021 - $9,484 for the three and nine months) for DSUs granted during the period. RSUs RSUs are stock-based awards that may be granted by the Company to certain eligible participants pursuant to its current Stock Incentive Plan. RSUs are accounted for as equity-settled share-based payment transactions as the obligations under an RSU will be settled through the issuance of common shares. The Company measures the cost of equity-settled share-based transactions by reference to the fair value of the equity instruments at the date at which they are granted and is recorded in the consolidated statements of loss and comprehensive loss over the vesting period. The changes in RSUs during the nine months ended September 30, 2022 and the year ended December 31, 2021 are as follows: September 30, 2022 December 31, 2021 Weighted average Weighted average Number of RSU exercise price Number of RSU exercise price RSUs outstanding, beginning 649,473 $ 3.42 507,849 $ 3.44 RSUs granted — — 450,442 3.41 RSUs exercised (235,792) 3.43 (169,283) 3.44 RSUs expired (88,406) 3.42 (139,535) 3.44 RSUs outstanding, ending 325,275 $ 3.41 649,473 $ 3.42 Details of RSUs outstanding as at September 30, 2022 are as follows: Weighted Number of average RSUs Number of RSUs Deemed value contractual life outstanding exercisable $ 3.41 8.87 325,275 — During the three and nine months ended September 30, 2022, the Company recognized stock-based compensation expense of $368,242 and $821,365, respectively (September 30, 2021 - $(105,608) and $428,202 for the three and nine months, respectively) for RSUs granted during the period. |
General and administrative expe
General and administrative expenses | 9 Months Ended |
Sep. 30, 2022 | |
General and administrative expenses | |
General and administrative expenses | 11. General and administrative expenses Three months ended Nine months ended September 30, 2022 September 30, 2021 September 30, 2022 September 30, 2021 Amortization $ 1,612,421 $ 1,102,638 $ 4,268,914 $ 3,005,004 Consulting fees 596,410 572,235 1,818,390 1,997,975 Insurance 752,483 510,089 2,258,610 1,464,799 Investor relations 828,685 370,926 1,563,714 789,568 Office expenses 970,156 603,821 2,970,362 1,397,269 Professional fees 2,184,676 1,608,623 5,181,742 4,170,581 Rent 436,352 456,014 1,069,591 1,153,370 Salaries and employee expenses 2,728,199 3,223,394 7,027,747 5,238,224 Share-based compensation expense 1,165,026 603,322 3,491,445 2,896,497 $ 11,274,408 $ 9,051,062 $ 29,650,515 $ 22,113,287 |
Research and development expens
Research and development expenses | 9 Months Ended |
Sep. 30, 2022 | |
Research and development expenses | |
Research and development expenses | 12. Research and development expenses Three months ended Nine months ended September 30, 2022 September 30, 2021 September 30, 2022 September 30, 2021 Labor $ 5,938,321 $ 4,035,735 $ 14,701,655 $ 9,740,490 Materials 461,120 1,254,717 1,523,919 1,906,467 Share-based compensation expense 142,589 144,842 601,821 671,981 $ 6,542,030 $ 5,435,294 $ 16,827,395 $ 12,318,938 |
Sales and marketing expenses
Sales and marketing expenses | 9 Months Ended |
Sep. 30, 2022 | |
Sales and marketing expenses | |
Sales and marketing expenses | 13. Sales and marketing expenses Three months ended Nine months ended September 30, 2022 September 30, 2021 September 30, 2022 September 30, 2021 Consulting $ 379,874 $ 310,738 $ 946,964 $ 490,337 Marketing 1,418,294 980,351 3,737,052 2,926,079 Salaries and benefits 1,346,884 1,302,138 4,330,485 3,137,092 Share-based compensation expense 26,745 85,809 81,554 448,844 $ 3,171,797 $ 2,679,036 $ 9,096,055 $ 7,002,352 |
Segmented information
Segmented information | 9 Months Ended |
Sep. 30, 2022 | |
Segmented information | |
Segmented information | 14. Segmented information The Company operates in two reportable business segments. 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 built vehicles – development and manufacture of high-end custom-built vehicles. No business segments have been aggregated to form the above reportable business segments. Three months ended September 30, 2022 Three months ended September 30, 2021 Custom Built Custom Built Electric Vehicles Vehicles Electric Vehicles Vehicles Revenue $ 1,274,523 $ 165,626 $ — $ 110,139 Gross profit / (loss) (1,002,132) 47,064 — (514) Operating expenses (20,980,416) (7,819) (17,081,621) (83,771) Other items 399,455 (955) 4,183,967 134,541 Net profit / (loss) (21,583,093) 38,290 (12,897,654) 50,256 FX translation (5,186) 40,201 882 16,806 Comprehensive profit / (loss) $ (21,588,279) $ 78,491 $ (12,896,772) $ 67,062 Nine months ended September 30, 2022 Nine months ended September 30, 2021 Custom Built Custom Built Electric Vehicles Vehicles Electric Vehicles Vehicles Revenue $ 3,452,005 $ 573,502 $ — $ 592,524 Gross profit / (loss) (4,758,006) 15,557 — 12,561 Operating expenses (55,454,276) (119,689) (41,232,424) (202,153) Other items 622,896 21,279 16,662,028 285,391 Current income tax recovery (847) — (850) — Net profit / (loss) (59,590,233) (82,853) (24,571,246) 95,799 FX translation (9,334) 50,694 3,210 145 Comprehensive profit / (loss) $ (59,599,567) $ (32,159) $ (24,568,036) $ 95,944 September 30, 2022 December 31, 2021 Custom Built Electric Vehicles Custom Built Vehicles Electric Vehicles Vehicles Inventory $ 8,663,070 $ 174,296 $ 3,243,267 $ 337,183 Plant and equipment 19,651,855 2,533 8,379,810 6,668 Right-of-use assets 8,951,938 — 1,511,875 225,534 |
Related party transactions
Related party transactions | 9 Months Ended |
Sep. 30, 2022 | |
Related party transactions | |
Related party transactions | 15. Related party transactions Related party balances The balance due to related parties is ..................... Key management personnel compensation Three months ended Nine months ended September 30, 2022 September 30, 2021 September 30, 2022 September 30, 2021 Salary $ 1,128,057 $ 2,350,134 $ 2,439,383 $ 3,095,936 Directors fees 218,283 103,777 563,336 262,641 Stock-based compensation 1,178,751 559,734 3,296,122 2,442,098 $ 2,525,091 $ 3,013,645 $ 6,298,841 $ 5,800,675 |
Financial instruments and finan
Financial instruments and financial risk management | 9 Months Ended |
Sep. 30, 2022 | |
Financial instruments and financial risk management | |
Financial instruments and financial risk management | 16. Financial instruments and financial risk management The Company is exposed in varying degrees to a variety of financial instrument related risks. The Board of Directors approves and monitors the risk management processes, inclusive of controlling and reporting structures. The type of risk exposure and the way in which such exposure is managed is provided as follows. Credit risk Credit risk is the risk that one party to a financial instrument will fail to discharge an obligation and cause the other party to incur a financial loss. The Company’s primary exposure to credit risk is on its cash and cash equivalents held in bank accounts. The majority of cash is deposited in bank accounts held with major financial institutions in Canada. As most of the Company’s cash is held by one financial institution there is a concentration of credit risk. This risk is managed by using major financial institutions that are high credit quality financial institutions as determined by rating agencies. The Company’s secondary exposure to risk is on its receivables. This risk is minimal as receivables consist primarily of refundable government goods and services taxes and interest receivable from major financial institutions with high credit ratings. 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 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 based on discounted payments as at September 30, 2022 and December 31, 2021. The Company excluded warrants derivative liabilities from the table because they are settled by shares (see note 9). Between one More than At September 30, 2022 Within one year and five years five years Trade payables $ 1,090,554 $ — $ — Accrued liabilities 4,090,722 — — Lease liabilities 1,283,443 5,625,988 10,964,402 DSU liabilities — 155,501 — $ 6,464,719 $ 5,781,489 $ 10,964,402 Between one More than At December 31, 2021 Within one year and five years five years Trade payables $ 1,249,861 $ — $ — Accrued liabilities 4,817,820 — — Due to related parties 743,100 — — Lease liabilities 392,279 867,757 627,235 DSU liabilities — 53,362 — $ 7,203,060 $ 921,119 $ 627,235 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 some expenditures that are denominated in CAD while its functional currency is USD. The Company does not hedge its exposure to fluctuations in foreign exchange rates. The following is an analysis of financial assets and liabilities that are denominated in CAD: September 30, September 30, 2022 2021 Cash and cash equivalents $ 590,760 $ 889,739 Restricted cash 74,968 80,697 Receivables 100,802 180,632 Lease liabilities (905,243) (1,511,194) Trade payables and accrued liabilities (195,211) (912,401) $ (333,924) $ (1,272,527) Based on the above net exposures, for the nine months ended September 30, 2022, a 10% change in the CAD to the USD exchange rate would impact the Company’s net loss by $33,392 (September 30, 2021 – $127,253). 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 0.1% increase in market interest rates would decrease the Company’s net loss by $111,943 for the nine months ended September 30, 2022 (September 30, 2021 - minimal). Classification of financial instruments Financial assets included in the consolidated statements of financial position are as follows: September 30, December 31, 2022 2021 Amortized cost: Cash and cash equivalents $ 153,883,279 $ 221,928,008 Restricted cash 513,527 291,676 Receivables 4,370 129,068 $ 154,401,176 $ 222,348,752 Financial liabilities included in the consolidated statements of financial position are as follows: September 30, December 31, 2022 2021 Non-derivative financial liabilities at amortized cost: Trade payable and accrued liabilities $ 5,181,276 $ 6,810,781 Lease liabilities 17,873,833 1,887,271 Derivative financial liabilities at fair value through profit or loss: Derivative liabilities 155,530 244,565 $ 23,210,639 $ 8,942,617 Fair value The fair value of the Company’s financial assets and liabilities, other than the derivative liabilities which are 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 September 30, 2022 consisted of the derivative liabilities, which include non-transferrable warrants and DSUs. The fair value of DSUs is classified as level 1, and the fair value of the non-transferrable warrants are classified as level 2 in the fair value hierarchy. The fair value of the derivative liabilities relating to the non-transferrable warrants was calculated using the Black-Scholes Option Pricing Model using the historical volatility of comparable companies as an estimate of future volatility. At September 30, 2022, if the volatility used was increased by 10% the impact would be an increase to the derivative liabilities of $89 (September 30, 2021 - $227,681) with a corresponding increase in loss and comprehensive loss. |
Capital management
Capital management | 9 Months Ended |
Sep. 30, 2022 | |
Capital management | |
Capital management | 17. Capital management The Company’s policy is to maintain a strong capital base to safeguard the Company’s 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 nine months ended September 30, 2022. The Company is not subject to any externally imposed capital requirements. |
Commitments
Commitments | 9 Months Ended |
Sep. 30, 2022 | |
Commitments | |
Commitments | 18. Commitments (a) As at September 30, 2022, the Company has capital commitments to incur an additional $3,140,351 (December 31, 2021 - $2,686,537 ) for development of its IT infrastructure and construction of Mesa facility. (b) The Company is committed to future minimum lease payments for short-term leases and long-term leases. The leases are related to rentals of its kiosk locations. The details of lease commitments for those leases not included in the lease liabilities as at September 30, 2022 are as follows: Fiscal year Amount 2022 $ 323,236 2023 78,247 2024 — 2025 — 2026 and after — Total $ 401,483 |
Subsequent events
Subsequent events | 9 Months Ended |
Sep. 30, 2022 | |
Subsequent events | |
Subsequent events | 19. Subsequent events Subsequent to September 30, 2022, the Company granted 687,336 stock options to employee with vesting period over 36 months . |
Significant accounting polici_2
Significant accounting policies and basis of preparation (Policies) | 9 Months Ended |
Sep. 30, 2022 | |
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, 2021. 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, 2021. Certain amounts in the prior year’s comparative figures have been reclassified to conform to the current year’s presentation. |
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 and vehicles inventory which are measured at lower of cost and net realizable value. As at September 30, 2022, the Company’s functional and presentation currency is United States dollars (“USD”). |
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 its incorporation on January 22, 2018, Intermeccanica International Inc. (“InterMeccanica”), from the date of its acquisition on October 18, 2017, EMV Automotive Technology (Chongqing) Inc., from the date of its incorporation on October 15, 2019, SOLO EV, LLC, from the date of its incorporation on November 22, 2019, and ElectraMeccanica USA, LLC, from the date of its incorporation on March 19, 2021. 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 fair value measurements for financial instruments and share-based payments. 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 from the Company in completing its consolidated financial statements include: - the assessment of the Company’s ability to continue operations and whether there are events or conditions that may give rise to significant uncertainty; |
Prepaid expenses (Tables)
Prepaid expenses (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Prepaid expenses | |
Schedule of prepaid expenses | September 30, 2022 December 31, 2021 Solo deposit $ 10,731,551 $ 4,734,914 Battery cell deposit 4,430,130 6,121,372 Battery deposit 100,207 100,207 Parts deposit 94,627 227,366 Prepaid insurance 98,390 2,027,001 Prepaid rent and security deposit 501,957 444,976 Other prepaid expenses 1,130,811 772,281 $ 17,087,673 $ 14,428,117 |
Inventory (Tables)
Inventory (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Inventory | |
Summary of inventory | September 30, 2022 December 31, 2021 Parts, battery, and accessories $ 1,925,200 $ 906,505 Work in progress — 128,424 Vehicles 11,717,317 4,232,736 Inventory provision (4,805,151) (1,687,215) $ 8,837,366 $ 3,580,450 |
Long-term deposit (Tables)
Long-term deposit (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Long-term deposit | |
Schedule of long term deposit | September 30, 2022 December 31, 2021 Security deposit $ 1,161,000 $ 1,161,000 Deposit for facility construction and equipment 186,392 — $ 1,347,392 $ 1,161,000 |
Plant and equipment (Tables)
Plant and equipment (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Plant and equipment | |
Schedule of plant and equipment | Computer Furniture hardware Production and and Leasehold tooling equipment software Vehicles improvements and molds Total Cost: December 31, 2020 $ 477,823 $ 421,198 $ 1,384,597 $ 435,376 $ 7,613,969 $ 10,332,963 Additions 448,918 584,307 1,816,568 1,124,818 387,260 4,361,871 Disposal — (1,971) (894,316) — — (896,287) Foreign exchange translation difference 689 41 — 482 — 1,212 December 31, 2021 927,430 1,003,575 2,306,849 1,560,676 8,001,229 13,799,759 Additions 881,292 373,760 1,643,445 7,549,364 4,563,066 15,010,927 Disposal — — (393,669) — (56,285) (449,954) Foreign exchange translation difference (12,848) (476) — (5,721) — (19,045) September 30, 2022 $ 1,795,874 $ 1,376,859 $ 3,556,625 $ 9,104,319 $ 12,508,010 $ 28,341,687 Amortization: December 31, 2020 $ 309,321 $ 198,331 $ 294,672 $ 273,756 $ 893,909 $ 1,969,989 Additions 97,760 249,754 340,621 116,105 2,675,815 3,480,055 Disposal — (219) (38,022) — — (38,241) Foreign exchange translation difference 985 38 — 455 — 1,478 December 31, 2021 408,066 447,904 597,271 390,316 3,569,724 5,413,281 Additions 178,824 283,099 603,291 279,190 2,038,308 3,382,712 Disposal — — (90,252) — — (90,252) Foreign exchange translation difference (12,247) (476) — (5,719) — (18,442) September 30, 2022 $ 574,643 $ 730,527 $ 1,110,310 $ 663,787 $ 5,608,032 $ 8,687,299 Net book value: December 31, 2021 $ 519,364 $ 555,671 $ 1,709,578 $ 1,170,360 $ 4,431,505 $ 8,386,478 September 30, 2022 $ 1,221,231 $ 646,332 $ 2,446,315 $ 8,440,532 $ 6,899,978 $ 19,654,388 |
Trade payables and accrued li_2
Trade payables and accrued liabilities (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Trade payables and accrued liabilities | |
Schedule of trade payables and accrued liabilities | September 30, 2022 December 31, 2021 Trade payables $ 1,090,554 $ 1,249,861 Due to related parties (Note 15) — 743,100 Accrued liabilities 4,090,722 4,817,820 $ 5,181,276 $ 6,810,781 |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Leases. | |
Schedule of carrying amounts of right-of-use assets | Right-of-use assets Cost: December 31, 2020 $ 1,660,098 Additions 1,575,434 Foreign exchange translation difference 2,520 December 31, 2021 3,238,052 Additions 8,424,158 Disposal (524,568) Foreign exchange translation difference (658) September 30, 2022 $ 11,136,984 Amortization: December 31, 2020 $ 732,764 Additions 767,293 Foreign exchange translation difference 586 December 31, 2021 1,500,643 Additions 883,253 Disposal (198,623) Foreign exchange translation difference (227) September 30, 2022 $ 2,185,046 Net book value: December 31, 2021 $ 1,737,409 September 30, 2022 $ 8,951,938 |
Schedule of change in the lease liabilities | Balance as at December 31, 2020 $ 1,075,773 Lease addition 1,575,434 Accretion of lease liability 144,975 Repayment of principal and interest (908,911) Balance as at December 31, 2021 $ 1,887,271 Lease addition 16,426,759 Accretion of lease liability 765,768 Repayment of principal and interest (849,532) Lease modification (356,433) Balance as at September 30, 2022 $ 17,873,833 |
Schedule of the contractual undiscounted cash flows related to leases | Present value of Future minimum minimum lease At September 30, 2022 lease payments Interest payments Less than one year $ 2,142,683 $ 859,240 $ 1,283,443 Between one and five years 11,747,097 6,121,109 5,625,988 More than five years 15,711,180 4,746,778 10,964,402 $ 29,600,961 $ 11,727,127 $ 17,873,833 Current portion of lease liabilities 1,283,443 Non-current portion of lease liabilities $ 16,590,390 |
Derivative liabilities (Tables)
Derivative liabilities (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Derivative liabilities. | |
Schedule of changes in fair values of the derivative liability | September 30, 2022 December 31, 2021 Balance, beginning $ 191,203 $ 17,899,855 Decrease of derivative liabilities for warrants priced in USD per change in functional currency — (17,899,855) Recognize of derivative liabilities for warrants priced in CAD per change in functional currency — 32,439,081 Warrants exercised — (13,327,450) Changes in fair value of derivative liabilities (191,174) (18,920,428) Balance, ending $ 29 $ 191,203 |
Schedule of changes in DSU | The changes in DSUs during the nine months ended September 30, 2022 are as follows: Number of DSU Amount Balance, December 31, 2021 84,581 $ 53,362 Issuance 42,879 — Stock-based compensation expense — 223,107 Changes in fair value of derivative liabilities — (120,968) Balance, September 30, 2022 127,460 $ 155,501 |
Share capital (Tables)
Share capital (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Share capital. | |
Schedule of changes in options | September 30, 2022 December 31, 2021 Weighted Weighted Number of average exercise Number of average options price options exercise price Options outstanding, beginning 11,974,300 $ 2.73 13,008,364 $ 2.14 Options granted 2,908,849 1.83 3,217,378 3.94 Options exercised (1,384,091) 0.32 (3,785,174) 1.58 Options forfeited/expired/cancelled (882,644) 3.84 (466,268) 2.85 Options outstanding, ending 12,616,414 $ 2.71 11,974,300 $ 2.73 |
Schedule of details of options outstanding | Number of Weighted average Number of options options Exercise price contractual life outstanding exercisable $0.80 CAD 0.20 277,273 277,273 $2.00 CAD 1.55 80,214 80,214 $1.50 6.78 1,021,000 369,555 $1.91 5.14 2,955,000 2,649,446 $1.94 6.55 597,002 217,158 $2.13 6.35 115,466 49,506 $2.20 6.51 500,000 212,962 $2.45 3.85 1,250,000 1,250,000 $2.53 3.86 75,000 75,000 $2.62 0.98 700,000 700,000 $3.01 7.67 1,500,000 — $3.40 3.47 1,035,000 1,035,000 $3.41 4.81 772,729 619,638 $3.55 5.79 75,000 30,420 $3.56 6.12 247,393 124,909 $3.77 5.12 165,000 131,462 $4.15 8.57 755,000 607,080 $5.00 1.17 193,629 193,629 $7.23 5.28 101,721 75,061 $7.75 5.39 92,487 74,785 $9.60 2.18 107,500 107,500 12,616,414 8,880,598 |
Schedule of changes in warrants | September 30, 2022 December 31, 2021 Weighted Weighted Number of average Number of average warrants exercise price warrants exercise price Warrants outstanding, beginning 7,402,021 $ 5.23 15,070,883 $ 4.01 Warrants exercised — — (4,270,005) 3.34 Warrants expired (1,215,502) 4.68 (3,398,857) 4.66 Warrants outstanding, ending 6,186,519 $ 5.34 7,402,021 $ 5.23 |
Schedule of details in warrants outstanding | Weighted average Number of warrants Exercise Price contractual life outstanding Non-Transferable Warrants $12.00 CAD - $16.00 CAD 0.73 years 630,998 $2.56 USD - $15.00 USD 1.43 years 1,054,253 Transferable Warrants $4.25 USD 0.85 years 4,501,268 Warrants outstanding, ending 0.94 years 6,186,519 |
Schedule of changes in deferred share units | September 30, 2022 December 31, 2021 Weighted average Weighted average Number of DSU fair value Number of DSU fair value DSUs outstanding, beginning 84,581 $ 3.41 44,623 $ 3.41 DSUs granted 42,879 2.24 51,468 3.41 DSUs exercised — — (11,510) 3.41 DSUs outstanding, ending 127,460 $ 3.02 84,581 $ 3.41 |
Schedule of details of deferred share units outstanding | Weighted Number of average DSUs Number of DSUs Deemed value contractual life outstanding exercisable $ 3.02 8.84 127,460 127,460 |
Schedule of changes in restricted share units | September 30, 2022 December 31, 2021 Weighted average Weighted average Number of RSU exercise price Number of RSU exercise price RSUs outstanding, beginning 649,473 $ 3.42 507,849 $ 3.44 RSUs granted — — 450,442 3.41 RSUs exercised (235,792) 3.43 (169,283) 3.44 RSUs expired (88,406) 3.42 (139,535) 3.44 RSUs outstanding, ending 325,275 $ 3.41 649,473 $ 3.42 |
Schedule of details of restricted share units outstanding | Weighted Number of average RSUs Number of RSUs Deemed value contractual life outstanding exercisable $ 3.41 8.87 325,275 — |
General and administrative ex_2
General and administrative expenses (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
General and administrative expenses | |
Schedule of general and administrative expenses | Three months ended Nine months ended September 30, 2022 September 30, 2021 September 30, 2022 September 30, 2021 Amortization $ 1,612,421 $ 1,102,638 $ 4,268,914 $ 3,005,004 Consulting fees 596,410 572,235 1,818,390 1,997,975 Insurance 752,483 510,089 2,258,610 1,464,799 Investor relations 828,685 370,926 1,563,714 789,568 Office expenses 970,156 603,821 2,970,362 1,397,269 Professional fees 2,184,676 1,608,623 5,181,742 4,170,581 Rent 436,352 456,014 1,069,591 1,153,370 Salaries and employee expenses 2,728,199 3,223,394 7,027,747 5,238,224 Share-based compensation expense 1,165,026 603,322 3,491,445 2,896,497 $ 11,274,408 $ 9,051,062 $ 29,650,515 $ 22,113,287 |
Research and development expe_2
Research and development expenses (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Research and development expenses | |
Schedule of research and development expense | Three months ended Nine months ended September 30, 2022 September 30, 2021 September 30, 2022 September 30, 2021 Labor $ 5,938,321 $ 4,035,735 $ 14,701,655 $ 9,740,490 Materials 461,120 1,254,717 1,523,919 1,906,467 Share-based compensation expense 142,589 144,842 601,821 671,981 $ 6,542,030 $ 5,435,294 $ 16,827,395 $ 12,318,938 |
Sales and marketing expenses (T
Sales and marketing expenses (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Sales and marketing expenses | |
Schedule of sales and marketing expenses | Three months ended Nine months ended September 30, 2022 September 30, 2021 September 30, 2022 September 30, 2021 Consulting $ 379,874 $ 310,738 $ 946,964 $ 490,337 Marketing 1,418,294 980,351 3,737,052 2,926,079 Salaries and benefits 1,346,884 1,302,138 4,330,485 3,137,092 Share-based compensation expense 26,745 85,809 81,554 448,844 $ 3,171,797 $ 2,679,036 $ 9,096,055 $ 7,002,352 |
Segmented information (Tables)
Segmented information (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Segmented information | |
Schedule of segmented information | Three months ended September 30, 2022 Three months ended September 30, 2021 Custom Built Custom Built Electric Vehicles Vehicles Electric Vehicles Vehicles Revenue $ 1,274,523 $ 165,626 $ — $ 110,139 Gross profit / (loss) (1,002,132) 47,064 — (514) Operating expenses (20,980,416) (7,819) (17,081,621) (83,771) Other items 399,455 (955) 4,183,967 134,541 Net profit / (loss) (21,583,093) 38,290 (12,897,654) 50,256 FX translation (5,186) 40,201 882 16,806 Comprehensive profit / (loss) $ (21,588,279) $ 78,491 $ (12,896,772) $ 67,062 Nine months ended September 30, 2022 Nine months ended September 30, 2021 Custom Built Custom Built Electric Vehicles Vehicles Electric Vehicles Vehicles Revenue $ 3,452,005 $ 573,502 $ — $ 592,524 Gross profit / (loss) (4,758,006) 15,557 — 12,561 Operating expenses (55,454,276) (119,689) (41,232,424) (202,153) Other items 622,896 21,279 16,662,028 285,391 Current income tax recovery (847) — (850) — Net profit / (loss) (59,590,233) (82,853) (24,571,246) 95,799 FX translation (9,334) 50,694 3,210 145 Comprehensive profit / (loss) $ (59,599,567) $ (32,159) $ (24,568,036) $ 95,944 September 30, 2022 December 31, 2021 Custom Built Electric Vehicles Custom Built Vehicles Electric Vehicles Vehicles Inventory $ 8,663,070 $ 174,296 $ 3,243,267 $ 337,183 Plant and equipment 19,651,855 2,533 8,379,810 6,668 Right-of-use assets 8,951,938 — 1,511,875 225,534 |
Related party transactions (Tab
Related party transactions (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Related party transactions | |
Schedule of key management personnel compensation | Three months ended Nine months ended September 30, 2022 September 30, 2021 September 30, 2022 September 30, 2021 Salary $ 1,128,057 $ 2,350,134 $ 2,439,383 $ 3,095,936 Directors fees 218,283 103,777 563,336 262,641 Stock-based compensation 1,178,751 559,734 3,296,122 2,442,098 $ 2,525,091 $ 3,013,645 $ 6,298,841 $ 5,800,675 |
Financial instruments and fin_2
Financial instruments and financial risk management (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Financial instruments and financial risk management | |
Schedule of contractual maturities of non-derivative financial liabilities | Between one More than At September 30, 2022 Within one year and five years five years Trade payables $ 1,090,554 $ — $ — Accrued liabilities 4,090,722 — — Lease liabilities 1,283,443 5,625,988 10,964,402 DSU liabilities — 155,501 — $ 6,464,719 $ 5,781,489 $ 10,964,402 Between one More than At December 31, 2021 Within one year and five years five years Trade payables $ 1,249,861 $ — $ — Accrued liabilities 4,817,820 — — Due to related parties 743,100 — — Lease liabilities 392,279 867,757 627,235 DSU liabilities — 53,362 — $ 7,203,060 $ 921,119 $ 627,235 |
Schedule of financial assets and liabilities that are denominated in CAD | September 30, September 30, 2022 2021 Cash and cash equivalents $ 590,760 $ 889,739 Restricted cash 74,968 80,697 Receivables 100,802 180,632 Lease liabilities (905,243) (1,511,194) Trade payables and accrued liabilities (195,211) (912,401) $ (333,924) $ (1,272,527) |
Schedule of classification of financial instruments | September 30, December 31, 2022 2021 Amortized cost: Cash and cash equivalents $ 153,883,279 $ 221,928,008 Restricted cash 513,527 291,676 Receivables 4,370 129,068 $ 154,401,176 $ 222,348,752 September 30, December 31, 2022 2021 Non-derivative financial liabilities at amortized cost: Trade payable and accrued liabilities $ 5,181,276 $ 6,810,781 Lease liabilities 17,873,833 1,887,271 Derivative financial liabilities at fair value through profit or loss: Derivative liabilities 155,530 244,565 $ 23,210,639 $ 8,942,617 |
Commitments (Tables)
Commitments (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Commitments | |
Schedule of future minimum lease payments | Fiscal year Amount 2022 $ 323,236 2023 78,247 2024 — 2025 — 2026 and after — Total $ 401,483 |
Prepaid expenses (Details)
Prepaid expenses (Details) - USD ($) | Sep. 30, 2022 | Dec. 31, 2021 |
Prepaid expenses | ||
Solo deposit | $ 10,731,551 | $ 4,734,914 |
Battery cell deposit | 4,430,130 | 6,121,372 |
Battery deposit | 100,207 | 100,207 |
Parts deposit | 94,627 | 227,366 |
Prepaid insurance | 98,390 | 2,027,001 |
Prepaid rent and security deposit | 501,957 | 444,976 |
Other prepaid expenses | 1,130,811 | 772,281 |
Total | $ 17,087,673 | $ 14,428,117 |
Inventory (Details)
Inventory (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | |
Inventory | |||||
Parts, battery, and accessories | $ 1,925,200 | $ 1,925,200 | $ 906,505 | ||
Work in progress | 128,424 | ||||
Vehicles | 11,717,317 | 11,717,317 | 4,232,736 | ||
Inventory provision | (4,805,151) | (4,805,151) | (1,687,215) | ||
Total current inventories | 8,837,366 | 8,837,366 | $ 3,580,450 | ||
Inventory write-down | $ 306,085 | $ 0 | $ 3,118,581 | $ 0 |
Long-term deposit (Details)
Long-term deposit (Details) - USD ($) | Sep. 30, 2022 | Dec. 31, 2021 |
Long-term deposit | ||
Security deposit | $ 1,161,000 | $ 1,161,000 |
Deposit for facility construction and equipment | 186,392 | 0 |
Total | $ 1,347,392 | $ 1,161,000 |
Long-term deposit - Additional
Long-term deposit - Additional Information (Details) - USD ($) | Sep. 30, 2022 | Dec. 31, 2021 |
Long-term deposit | ||
Deposit for facility construction and equipment | $ 186,392 | $ 0 |
Plant and equipment (Details)
Plant and equipment (Details) - USD ($) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2022 | Dec. 31, 2021 | |
Net book value: | ||
Plant and equipment | $ 19,654,388 | $ 8,386,478 |
Cost | ||
Cost: | ||
Beginning balance | 13,799,759 | 10,332,963 |
Additions | 15,010,927 | 4,361,871 |
Disposals | (449,954) | (896,287) |
Foreign exchange translation difference | (19,045) | (1,212) |
Ending balance | 28,341,687 | 13,799,759 |
Amortization: | ||
Foreign exchange translation difference | (19,045) | (1,212) |
Amortization | ||
Cost: | ||
Foreign exchange translation difference | (18,442) | 1,478 |
Amortization: | ||
Beginning balance | 5,413,281 | 1,969,989 |
Additions | 3,382,712 | 3,480,055 |
Disposals | (90,252) | (38,241) |
Foreign exchange translation difference | (18,442) | 1,478 |
Ending balance | 8,687,299 | 5,413,281 |
Furniture and equipment | ||
Net book value: | ||
Plant and equipment | 1,221,231 | 519,364 |
Furniture and equipment | Cost | ||
Cost: | ||
Beginning balance | 927,430 | 477,823 |
Additions | 881,292 | 448,918 |
Foreign exchange translation difference | (12,848) | (689) |
Ending balance | 1,795,874 | 927,430 |
Amortization: | ||
Foreign exchange translation difference | (12,848) | (689) |
Furniture and equipment | Amortization | ||
Cost: | ||
Foreign exchange translation difference | (12,247) | 985 |
Amortization: | ||
Beginning balance | 408,066 | 309,321 |
Additions | 178,824 | 97,760 |
Foreign exchange translation difference | (12,247) | 985 |
Ending balance | 574,643 | 408,066 |
Computer hardware and software | ||
Net book value: | ||
Plant and equipment | 646,332 | 555,671 |
Computer hardware and software | Cost | ||
Cost: | ||
Beginning balance | 1,003,575 | 421,198 |
Additions | 373,760 | 584,307 |
Disposals | (1,971) | |
Foreign exchange translation difference | (476) | (41) |
Ending balance | 1,376,859 | 1,003,575 |
Amortization: | ||
Foreign exchange translation difference | (476) | (41) |
Computer hardware and software | Amortization | ||
Cost: | ||
Foreign exchange translation difference | (476) | 38 |
Amortization: | ||
Beginning balance | 447,904 | 198,331 |
Additions | 283,099 | 249,754 |
Disposals | (219) | |
Foreign exchange translation difference | (476) | 38 |
Ending balance | 730,527 | 447,904 |
Vehicles | ||
Net book value: | ||
Plant and equipment | 2,446,315 | 1,709,578 |
Vehicles | Cost | ||
Cost: | ||
Beginning balance | 2,306,849 | 1,384,597 |
Additions | 1,643,445 | 1,816,568 |
Disposals | (393,669) | (894,316) |
Foreign exchange translation difference | 0 | 0 |
Ending balance | 3,556,625 | 2,306,849 |
Amortization: | ||
Foreign exchange translation difference | 0 | 0 |
Vehicles | Amortization | ||
Cost: | ||
Foreign exchange translation difference | 0 | 0 |
Amortization: | ||
Beginning balance | 597,271 | 294,672 |
Additions | 603,291 | 340,621 |
Disposals | (90,252) | (38,022) |
Foreign exchange translation difference | 0 | 0 |
Ending balance | 1,110,310 | 597,271 |
Leasehold Improvements | ||
Net book value: | ||
Plant and equipment | 8,440,532 | 1,170,360 |
Leasehold Improvements | Cost | ||
Cost: | ||
Beginning balance | 1,560,676 | 435,376 |
Additions | 7,549,364 | 1,124,818 |
Disposals | 0 | 0 |
Foreign exchange translation difference | (5,721) | (482) |
Ending balance | 9,104,319 | 1,560,676 |
Amortization: | ||
Foreign exchange translation difference | (5,721) | (482) |
Leasehold Improvements | Amortization | ||
Cost: | ||
Foreign exchange translation difference | (5,719) | 455 |
Amortization: | ||
Beginning balance | 390,316 | 273,756 |
Additions | 279,190 | 116,105 |
Disposals | 0 | 0 |
Foreign exchange translation difference | (5,719) | 455 |
Ending balance | 663,787 | 390,316 |
Production tooling and molds | ||
Net book value: | ||
Plant and equipment | 6,899,978 | 4,431,505 |
Production tooling and molds | Cost | ||
Cost: | ||
Beginning balance | 8,001,229 | 7,613,969 |
Additions | 4,563,066 | 387,260 |
Disposals | (56,285) | 0 |
Foreign exchange translation difference | 0 | 0 |
Ending balance | 12,508,010 | 8,001,229 |
Amortization: | ||
Foreign exchange translation difference | 0 | 0 |
Production tooling and molds | Amortization | ||
Cost: | ||
Foreign exchange translation difference | 0 | 0 |
Amortization: | ||
Beginning balance | 3,569,724 | 893,909 |
Additions | 2,038,308 | 2,675,815 |
Disposals | 0 | 0 |
Foreign exchange translation difference | 0 | 0 |
Ending balance | $ 5,608,032 | $ 3,569,724 |
Plant and equipment - Additiona
Plant and equipment - Additional information (Details) - USD ($) | 9 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Right-of-use assets. | Cost | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Transfer to R&D | $ 363,079 | |
Right-of-use assets. | Amortization | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Transfer to R&D | 86,853 | |
Leasehold Improvements | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Non-cash additions | 7,500,515 | $ 0 |
Vehicles | Cost | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Non-cash additions | $ 704,157 | $ 0 |
Trade payables and accrued li_3
Trade payables and accrued liabilities (Details) - USD ($) | Sep. 30, 2022 | Dec. 31, 2021 |
Trade payables and accrued liabilities | ||
Trade payables | $ 1,090,554 | $ 1,249,861 |
Due to related parties (Note 15) | 743,100 | |
Accrued liabilities | 4,090,722 | 4,817,820 |
Trade payables and accrued liabilities | $ 5,181,276 | $ 6,810,781 |
Leases - Carrying amounts of ri
Leases - Carrying amounts of right of use assets (Details) - USD ($) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2022 | Dec. 31, 2021 | |
Right-of use assets | ||
Beginning Balance | $ 1,737,409 | |
Ending Balance | 8,951,938 | $ 1,737,409 |
Cost | ||
Right-of use assets | ||
Beginning Balance | 3,238,052 | 1,660,098 |
Additions | 8,424,158 | 1,575,434 |
Disposal | (524,568) | |
Foreign exchange translation difference | (658) | 2,520 |
Ending Balance | 11,136,984 | 3,238,052 |
Amortization | ||
Right-of use assets | ||
Beginning Balance | 1,500,643 | 732,764 |
Additions | 883,253 | 767,293 |
Disposal | (198,623) | |
Foreign exchange translation difference | (227) | 586 |
Ending Balance | $ 2,185,046 | $ 1,500,643 |
Leases - Change in the lease li
Leases - Change in the lease liabilities and disclose a maturity analysis (Details) - USD ($) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2022 | Dec. 31, 2021 | |
Leases. | ||
Balance as at beginning period | $ 1,887,271 | $ 1,075,773 |
Lease Addition | 16,426,759 | 1,575,434 |
Accretion of lease liability | 765,768 | 144,975 |
Repayment of principal and interest | (849,532) | (908,911) |
Lease modification | (356,433) | |
Balance as at end period | $ 17,873,833 | $ 1,887,271 |
Leases - Future minimum lease p
Leases - Future minimum lease payments (Details) - USD ($) | 9 Months Ended | |
Sep. 30, 2022 | Dec. 31, 2021 | |
Future minimum lease payments | ||
Future minimum lease payments | $ 29,600,961 | |
Interest | 11,727,127 | |
Present value of minimum lease payments | 17,873,833 | |
Current portion of lease liabilities | 1,283,443 | $ 392,279 |
Non-current portion of lease liabilities | 16,590,390 | $ 1,494,992 |
2022 | ||
Future minimum lease payments | ||
Future minimum lease payments | 2,142,683 | |
Interest | 859,240 | |
Present value of minimum lease payments | 1,283,443 | |
Between one and five years | ||
Future minimum lease payments | ||
Future minimum lease payments | 11,747,097 | |
Interest | 6,121,109 | |
Present value of minimum lease payments | 5,625,988 | |
More than five years | ||
Future minimum lease payments | ||
Future minimum lease payments | 15,711,180 | |
Interest | 4,746,778 | |
Present value of minimum lease payments | $ 10,964,402 |
Leases - Additional information
Leases - Additional information (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | |
Leases | ||||||
Lease expenses | $ 275,408 | $ 336,858 | $ 1,037,180 | $ 782,490 | ||
Right-of-use assets | 8,951,938 | 8,951,938 | $ 1,737,409 | |||
Lease liability | 17,873,833 | 17,873,833 | $ 1,887,271 | $ 1,075,773 | ||
Derecognised lease liabilities | 356,433 | 356,433 | ||||
Gain on disposal | 30,488 | |||||
Cost | ||||||
Leases | ||||||
Derecognised right-of-use assets | 524,568 | 524,568 | ||||
Amortization | ||||||
Leases | ||||||
Derecognised right-of-use assets | 198,623 | 198,623 | ||||
Lease agreement for a storage and distribution premise in California | ||||||
Leases | ||||||
Lease rent per month | $ 25,711 | |||||
Renewal term (in months) | 5 years | |||||
Right-of-use assets | 1,299,744 | $ 1,299,744 | ||||
Renewal of an existing lease agreement for a kiosk location in Arizona | ||||||
Leases | ||||||
Lease rent per month | $ 12,500 | |||||
Renewal term (in months) | 33 months | |||||
Right-of-use assets | 410,481 | $ 410,481 | ||||
Renewal an existing lease agreement for an office premise in Mesa Arizona | ||||||
Leases | ||||||
Lease rent per month | $ 15,813 | |||||
Renewal term (in months) | 13 months | |||||
Right-of-use assets | 195,672 | $ 195,672 | ||||
Lease agreement for Mesa facility | ||||||
Leases | ||||||
Renewal term (in months) | 129 months 15 days | |||||
Right-of-use assets | 6,518,261 | $ 6,518,261 | ||||
Lease liability | $ 14,520,861 | $ 14,520,861 | ||||
Minimum | ||||||
Leases | ||||||
Lease term | 1 year | |||||
Maximum | ||||||
Leases | ||||||
Lease term | 5 years |
Derivative liabilities - Change
Derivative liabilities - Changes in fair values of the derivative liability (Details) - USD ($) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2022 | Dec. 31, 2021 | |
Derivative liabilities. | ||
Balance, beginning | $ 191,203 | $ 17,899,855 |
Decrease of derivative liabilities for warrants priced in USD per change in functional currency | (17,899,855) | |
Recognize of derivative liabilities for warrants priced in CAD per change in functional currency | 32,439,081 | |
Warrants exercised | (13,327,450) | |
Changes in fair value of derivative liabilities | (191,174) | (18,920,428) |
Balance, ending | $ 29 | $ 191,203 |
Derivative liabilities - Chan_2
Derivative liabilities - Changes in deferred stock units (Details) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2022 USD ($) | Sep. 30, 2021 USD ($) | Sep. 30, 2022 USD ($) | Sep. 30, 2021 USD ($) | Dec. 31, 2021 USD ($) | |
Amount | |||||
Stock-based compensation expense | $ 1,165,026 | $ 603,322 | $ 3,491,445 | $ 2,896,497 | |
Changes in fair value of derivative liabilities | $ (191,174) | $ (18,920,428) | |||
Deferred Stock Units [Member] | |||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||||
Number of units issued | 42,879 | ||||
Vesting period | 1 year | ||||
Number of DSU | |||||
Balance at the beginning | 84,581 | ||||
Issuance | 42,879 | ||||
Balance at the end | 127,460 | 127,460 | 84,581 | ||
Amount | |||||
Balance at the beginning of period | $ 53,362 | ||||
Stock-based compensation expense | 223,107 | ||||
Changes in fair value of derivative liabilities | (120,968) | ||||
Balance at the end | $ 155,501 | $ 155,501 | $ 53,362 |
Share capital - Fully diluted l
Share capital - Fully diluted loss per share did not include effect would be anti dilutive (Details) - shares | 9 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Stock options | ||
IFRS Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Fully diluted loss per share did not include in calculation of EPS as the effect would be anti-dilutive | 12,616,414 | 10,252,227 |
Warrants | ||
IFRS Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Fully diluted loss per share did not include in calculation of EPS as the effect would be anti-dilutive | 6,186,519 | 11,604,402 |
DSUs | ||
IFRS Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Fully diluted loss per share did not include in calculation of EPS as the effect would be anti-dilutive | 127,460 | 84,581 |
RSUs | ||
IFRS Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Fully diluted loss per share did not include in calculation of EPS as the effect would be anti-dilutive | 325,275 | 649,473 |
Share capital - Changes in opti
Share capital - Changes in options (Details) - Stock options - $ / shares | 9 Months Ended | 12 Months Ended |
Sep. 30, 2022 | Dec. 31, 2021 | |
Disclosure of classes of share capital [line items] | ||
Number of options, Options granted | 2,908,849 | 3,217,378 |
Number of options, Options exercised | (1,384,091) | (3,785,174) |
Number of options, Options forfeited/expired/cancelled | (882,644) | (466,268) |
Number of options outstanding, ending | 12,616,414 | 11,974,300 |
Number of options outstanding, beginning | 11,974,300 | 13,008,364 |
Weighted average exercise price, Options outstanding, beginning | $ 2.73 | $ 2.14 |
Weighted average exercise price, Options granted | 1.83 | 3.94 |
Weighted average exercise price, Options exercised | 0.32 | 1.58 |
Weighted average exercise price, Options forfeited/expired/cancelled | 3.84 | 2.85 |
Weighted average exercise price, Options outstanding, ending | $ 2.71 | $ 2.73 |
Share capital - Options outstan
Share capital - Options outstanding (Details) - Stock options | 9 Months Ended | |
Sep. 30, 2022 $ / shares shares | Sep. 30, 2022 $ / shares shares | |
Disclosure of classes of share capital [line items] | ||
Number of options outstanding | 12,616,414 | 12,616,414 |
Number of options exercisable | 8,880,598 | 8,880,598 |
Exercise price $ 0.80 | ||
Disclosure of classes of share capital [line items] | ||
Exercise price | $ / shares | $ 0.80 | |
Weighted average contractual life | 2 months 12 days | |
Number of options outstanding | 277,273 | 277,273 |
Number of options exercisable | 277,273 | 277,273 |
Exercise price $ 2.00 | ||
Disclosure of classes of share capital [line items] | ||
Exercise price | $ / shares | $ 2 | |
Weighted average contractual life | 1 year 6 months 18 days | |
Number of options outstanding | 80,214 | 80,214 |
Number of options exercisable | 80,214 | 80,214 |
Exercise price $ 1.50 | ||
Disclosure of classes of share capital [line items] | ||
Exercise price | $ / shares | $ 1.50 | |
Weighted average contractual life | 6 years 9 months 10 days | |
Number of options outstanding | 1,021,000 | 1,021,000 |
Number of options exercisable | 369,555 | 369,555 |
Exercise price $ 1.91 | ||
Disclosure of classes of share capital [line items] | ||
Exercise price | $ / shares | $ 1.91 | |
Weighted average contractual life | 5 years 1 month 20 days | |
Number of options outstanding | 2,955,000 | 2,955,000 |
Number of options exercisable | 2,649,446 | 2,649,446 |
Exercise price $ 1.94 | ||
Disclosure of classes of share capital [line items] | ||
Exercise price | $ / shares | $ 1.94 | |
Weighted average contractual life | 6 years 6 months 18 days | |
Number of options outstanding | 597,002 | 597,002 |
Number of options exercisable | 217,158 | 217,158 |
Exercise price $ 2.13 | ||
Disclosure of classes of share capital [line items] | ||
Exercise price | $ / shares | $ 2.13 | |
Weighted average contractual life | 6 years 4 months 6 days | |
Number of options outstanding | 115,466 | 115,466 |
Number of options exercisable | 49,506 | 49,506 |
Exercise price $ 2.20 | ||
Disclosure of classes of share capital [line items] | ||
Exercise price | $ / shares | $ 2.20 | |
Weighted average contractual life | 6 years 6 months 3 days | |
Number of options outstanding | 500,000 | 500,000 |
Number of options exercisable | 212,962 | 212,962 |
Exercise price $2.45 | ||
Disclosure of classes of share capital [line items] | ||
Exercise price | $ / shares | $ 2.45 | |
Weighted average contractual life | 3 years 10 months 6 days | |
Number of options outstanding | 1,250,000 | 1,250,000 |
Number of options exercisable | 1,250,000 | 1,250,000 |
Exercise price $ 2.53 | ||
Disclosure of classes of share capital [line items] | ||
Exercise price | $ / shares | $ 2.53 | |
Weighted average contractual life | 3 years 10 months 9 days | |
Number of options outstanding | 75,000 | 75,000 |
Number of options exercisable | 75,000 | 75,000 |
Exercise price $ 2.62 | ||
Disclosure of classes of share capital [line items] | ||
Exercise price | $ / shares | $ 2.62 | |
Weighted average contractual life | 11 months 23 days | |
Number of options outstanding | 700,000 | 700,000 |
Number of options exercisable | 700,000 | 700,000 |
Exercise price, $ 3.01 | ||
Disclosure of classes of share capital [line items] | ||
Exercise price | $ / shares | $ 3.01 | |
Weighted average contractual life | 7 years 8 months 1 day | |
Number of options outstanding | 1,500,000 | 1,500,000 |
Number of options exercisable | 0 | 0 |
Exercise price $ 3.40 | ||
Disclosure of classes of share capital [line items] | ||
Exercise price | $ / shares | $ 3.40 | |
Weighted average contractual life | 3 years 5 months 19 days | |
Number of options outstanding | 1,035,000 | 1,035,000 |
Number of options exercisable | 1,035,000 | 1,035,000 |
Exercise price $3.41 | ||
Disclosure of classes of share capital [line items] | ||
Exercise price | $ / shares | $ 3.41 | |
Weighted average contractual life | 4 years 9 months 21 days | |
Number of options outstanding | 772,729 | 772,729 |
Number of options exercisable | 619,638 | 619,638 |
Exercise Price $ 3.55 | ||
Disclosure of classes of share capital [line items] | ||
Exercise price | $ / shares | $ 3.55 | |
Weighted average contractual life | 5 years 9 months 14 days | |
Number of options outstanding | 75,000 | 75,000 |
Number of options exercisable | 30,420 | 30,420 |
Exercise Price $ 3.56 | ||
Disclosure of classes of share capital [line items] | ||
Exercise price | $ / shares | $ 3.56 | |
Weighted average contractual life | 6 years 1 month 13 days | |
Number of options outstanding | 247,393 | 247,393 |
Number of options exercisable | 124,909 | 124,909 |
Exercise Price $3.77 | ||
Disclosure of classes of share capital [line items] | ||
Exercise price | $ / shares | $ 3.77 | |
Weighted average contractual life | 5 years 1 month 13 days | |
Number of options outstanding | 165,000 | 165,000 |
Number of options exercisable | 131,462 | 131,462 |
Exercise Price $ 4.15 | ||
Disclosure of classes of share capital [line items] | ||
Exercise price | $ / shares | $ 4.15 | |
Weighted average contractual life | 8 years 6 months 25 days | |
Number of options outstanding | 755,000 | 755,000 |
Number of options exercisable | 607,080 | 607,080 |
Exercise Price $ 5.00 | ||
Disclosure of classes of share capital [line items] | ||
Exercise price | $ / shares | $ 5 | |
Weighted average contractual life | 1 year 2 months 1 day | |
Number of options outstanding | 193,629 | 193,629 |
Number of options exercisable | 193,629 | 193,629 |
Exercise Price $7.23 | ||
Disclosure of classes of share capital [line items] | ||
Exercise price | $ / shares | $ 7.23 | |
Weighted average contractual life | 5 years 3 months 10 days | |
Number of options outstanding | 101,721 | 101,721 |
Number of options exercisable | 75,061 | 75,061 |
Exercise Price $ 7.75 | ||
Disclosure of classes of share capital [line items] | ||
Exercise price | $ / shares | $ 7.75 | |
Weighted average contractual life | 5 years 4 months 20 days | |
Number of options outstanding | 92,487 | 92,487 |
Number of options exercisable | 74,785 | 74,785 |
Exercise Price $ 9.60 | ||
Disclosure of classes of share capital [line items] | ||
Exercise price | $ / shares | $ 9.60 | |
Weighted average contractual life | 2 years 2 months 4 days | |
Number of options outstanding | 107,500 | 107,500 |
Number of options exercisable | 107,500 | 107,500 |
Share capital - The changes in
Share capital - The changes in warrants (Details) - Warrants - $ / shares | 9 Months Ended | 12 Months Ended |
Sep. 30, 2022 | Dec. 31, 2021 | |
Disclosure of classes of share capital [line items] | ||
Number of warrants, Warrants outstanding, beginning | 7,402,021 | 15,070,883 |
Number of warrants, Warrants exercised | (4,270,005) | |
Number of warrants expired | (1,215,502) | (3,398,857) |
Number of warrants, Warrants outstanding, ending | 6,186,519 | 7,402,021 |
Weighted average exercise price, Warrants outstanding, beginning | $ 5.23 | $ 4.01 |
Weighted average exercise price, Warrants exercised | 3.34 | |
Weighted average exercise price, Warrants expired | 4.68 | 4.66 |
Weighted average exercise price, Warrants outstanding, ending | $ 5.34 | $ 5.23 |
Share capital - Warrants outsta
Share capital - Warrants outstanding (Details) - Warrants | 9 Months Ended | |||
Sep. 30, 2022 $ / shares shares | Sep. 30, 2022 $ / shares shares | Dec. 31, 2021 shares | Dec. 31, 2020 shares | |
Disclosure of classes of share capital [line items] | ||||
Weighted average contractual life | 11 months 8 days | |||
Number of warrants outstanding | shares | 6,186,519 | 6,186,519 | 7,402,021 | 15,070,883 |
Non-Transferable Warrants $4.00 CAD - $16.00 CAD | ||||
Disclosure of classes of share capital [line items] | ||||
Weighted average contractual life | 8 months 23 days | |||
Number of warrants outstanding | shares | 630,998 | 630,998 | ||
Non-Transferable Warrants $4.00 CAD - $16.00 CAD | Exercise price range Minimum | ||||
Disclosure of classes of share capital [line items] | ||||
Exercise price | $ 12 | |||
Non-Transferable Warrants $4.00 CAD - $16.00 CAD | Exercise price range 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 | 1 year 5 months 4 days | |||
Number of warrants outstanding | shares | 1,054,253 | 1,054,253 | ||
Non-Transferable Warrants $2.00 USD - $24.00 USD | Exercise price range Minimum | ||||
Disclosure of classes of share capital [line items] | ||||
Exercise price | $ 2.56 | |||
Non-Transferable Warrants $2.00 USD - $24.00 USD | Exercise price range Maximum | ||||
Disclosure of classes of share capital [line items] | ||||
Exercise price | 15 | |||
Transferable Warrants $4.25 USD | ||||
Disclosure of classes of share capital [line items] | ||||
Exercise price | $ 4.25 | |||
Weighted average contractual life | 10 months 6 days | |||
Number of warrants outstanding | shares | 4,501,268 | 4,501,268 |
Share capital - Deferred share
Share capital - Deferred share units (Details) - DSUs - $ / shares | 9 Months Ended | 12 Months Ended |
Sep. 30, 2022 | Dec. 31, 2021 | |
Disclosure of classes of share capital [line items] | ||
Number of options granted | 42,879 | 51,468 |
Number of options exercised | (11,510) | |
Number of options outstanding, beginning | 84,581 | 44,623 |
Number of options outstanding, ending | 127,460 | 84,581 |
Weighted average exercise price, Options granted | $ 2.24 | $ 3.41 |
Weighted average exercise price, Options exercised | 3.41 | |
Weighted average exercise price, Options outstanding, beginning | 3.41 | 3.41 |
Weighted average exercise price, Options outstanding, ending | $ 3.02 | $ 3.41 |
Share capital - Deferred shar_2
Share capital - Deferred share units Outstanding (Details) - DSUs - $ / shares | 9 Months Ended | ||
Sep. 30, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Disclosure of classes of share capital [line items] | |||
Number of options outstanding | 127,460 | 84,581 | 44,623 |
Deferred share unit Exercise Price Range One [Member] | |||
Disclosure of classes of share capital [line items] | |||
Exercise price | $ 3.02 | ||
Weighted average contractual life | 8 years 10 months 2 days | ||
Number of options outstanding | 127,460 | ||
Number of options exercisable | 127,460 |
Share capital - Restricted shar
Share capital - Restricted share units (Details) - RSUs - $ / shares | 9 Months Ended | 12 Months Ended |
Sep. 30, 2022 | Dec. 31, 2021 | |
Disclosure of classes of share capital [line items] | ||
Number of options outstanding, beginning | 649,473 | 507,849 |
Number of options granted | 450,442 | |
Number of options exercised | (235,792) | (169,283) |
Number of options expired | (88,406) | (139,535) |
Number of options outstanding, ending | 325,275 | 649,473 |
Weighted average exercise price, Options outstanding, beginning | $ 3.42 | $ 3.44 |
Weighted average exercise price, Options outstanding, ending | 3.41 | 3.42 |
Weighted average exercise price, Options granted | 3.41 | |
Weighted average exercise price, Options exercised | 3.43 | 3.44 |
Weighted average exercise price, options expired | $ 3.42 | $ 3.44 |
Share capital - Restricted sh_2
Share capital - Restricted share units Outstanding (Details) - RSUs - $ / shares | 9 Months Ended | ||
Sep. 30, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Disclosure of classes of share capital [line items] | |||
Number of options outstanding | 325,275 | 649,473 | 507,849 |
Restricted share unit Exercise Price Range One [Member] | |||
Disclosure of classes of share capital [line items] | |||
Exercise price | $ 3.41 | ||
Weighted average contractual life | 8 years 10 months 13 days | ||
Number of options outstanding | 325,275 |
Share capital - Additional Info
Share capital - Additional Information (Details) | 3 Months Ended | 6 Months Ended | 9 Months Ended | |||||||||||||
Sep. 30, 2022 USD ($) shares | Sep. 30, 2022 CAD ($) $ / shares shares | Jun. 30, 2022 USD ($) shares | Jun. 30, 2022 CAD ($) $ / shares shares | Mar. 31, 2022 USD ($) shares | Mar. 31, 2022 CAD ($) $ / shares shares | Sep. 30, 2021 USD ($) shares | Jun. 30, 2021 USD ($) shares | Mar. 31, 2021 USD ($) shares | Mar. 31, 2021 USD ($) shares | Jun. 30, 2021 USD ($) shares | Sep. 30, 2022 USD ($) $ / shares shares | Sep. 30, 2021 USD ($) $ / shares shares | Dec. 31, 2021 shares | Jan. 01, 2021 shares | Dec. 31, 2020 shares | |
Disclosure of classes of share capital [line items] | ||||||||||||||||
Shares issued pursuant to exercise of warrants | $ 1,682,416 | $ 404,354 | $ 16,801,135 | |||||||||||||
Number of shares issued for stock option exercised | shares | 137,976 | 137,976 | ||||||||||||||
Shares issued for stock option exercised | $ 5,777 | $ 48,550 | $ 295,516 | 645,750 | 50,329 | $ 449,459 | ||||||||||
Net loss for the period | $ (21,544,803) | $ (20,296,746) | $ (17,831,537) | $ (12,847,398) | (11,447,385) | $ (180,664) | $ (59,673,086) | $ (24,475,447) | ||||||||
Weighted average number of common shares outstanding | shares | 118,847,779 | 118,847,779 | 113,670,604 | 118,638,876 | 110,110,785 | |||||||||||
Share issued price | $ / shares | $ 0.30 | |||||||||||||||
Proceeds from issuing shares | $ 5,777 | |||||||||||||||
Shares issuance costs | 2,887 | |||||||||||||||
CAD$0.30 per share | ||||||||||||||||
Disclosure of classes of share capital [line items] | ||||||||||||||||
Number of shares issued for stock option exercised | shares | 25,000 | 25,000 | 56,818 | 56,818 | ||||||||||||
Share issued price | $ / shares | $ 0.30 | |||||||||||||||
Proceeds from issuing shares | $ 7,500 | $ 13,241 | $ 17,045 | |||||||||||||
CAD$0.80 per share | ||||||||||||||||
Disclosure of classes of share capital [line items] | ||||||||||||||||
Number of shares issued for stock option exercised | shares | 56,818 | 56,818 | ||||||||||||||
Share issued price | $ / shares | $ 0.80 | |||||||||||||||
Proceeds from issuing shares | $ 35,309 | $ 45,454 | ||||||||||||||
Investors [Member] | ||||||||||||||||
Disclosure of classes of share capital [line items] | ||||||||||||||||
Number of shares issued | shares | ||||||||||||||||
Maximum aggregate offering price | $ 200,000,000 | $ 200,000,000 | ||||||||||||||
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 | 10 years | |||||||||||||||
Stock Option Exercise Period Not Later Than Ninety Days | 90 days | |||||||||||||||
Weighted average share price, share options granted | $ / shares | $ 0.95 | $ 2.59 | ||||||||||||||
Stock-based compensation expense | $ 925,767 | 930,097 | $ 3,130,348 | $ 3,579,636 | ||||||||||||
DSUs | ||||||||||||||||
Disclosure of classes of share capital [line items] | ||||||||||||||||
Stock-based compensation expense | 40,351 | $ 9,484 | $ 9,484 | 223,107 | ||||||||||||
RSUs | ||||||||||||||||
Disclosure of classes of share capital [line items] | ||||||||||||||||
Shares issued for stock option exercised | 83,353 | |||||||||||||||
Stock-based compensation expense | $ 368,242 | $ (105,608) | $ 821,365 | $ 428,202 | ||||||||||||
Share capital | ||||||||||||||||
Disclosure of classes of share capital [line items] | ||||||||||||||||
Number of shares issued | shares | 118,888,108 | 118,888,108 | 118,888,108 | 117,338,964 | ||||||||||||
Number of shares outstanding | shares | 118,888,108 | 118,888,108 | 118,725,132 | 118,725,132 | 118,611,496 | 118,611,496 | 114,944,673 | 113,040,021 | 112,929,422 | 112,929,422 | 113,040,021 | 118,888,108 | 114,944,673 | 117,338,964 | 89,309,563 | 89,309,563 |
Shares issued pursuant to exercise of warrants | $ 1,682,416 | $ 404,354 | $ 16,802,299 | |||||||||||||
Number of shares issued for stock option exercised | shares | 25,000 | 25,000 | 113,636 | 113,636 | 1,245,455 | 1,245,455 | 1,375,400 | 21,825 | 1,058,724 | |||||||
Shares issued for stock option exercised | $ 6,795 | $ 62,862 | $ 346,206 | $ 3,115,294 | $ 104,301 | $ 727,253 | ||||||||||
Shares issued pursuant to exercise of warrants (in shares) | shares | 1,245,455 | 1,245,455 | 405,000 | 88,774 | 2,195,640 | |||||||||||
Share issued price | $ / shares | $ 0.30 | |||||||||||||||
Proceeds from issuing shares | $ 297,564 | $ 373,637 | ||||||||||||||
Shares issuance costs | $ 2,887 |
General and administrative ex_3
General and administrative expenses (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
General and administrative expenses | ||||
Amortization | $ 1,612,421 | $ 1,102,638 | $ 4,268,914 | $ 3,005,004 |
Consulting fees | 596,410 | 572,235 | 1,818,390 | 1,997,975 |
Insurance | 752,483 | 510,089 | 2,258,610 | 1,464,799 |
Investor relations | 828,685 | 370,926 | 1,563,714 | 789,568 |
Office expenses | 970,156 | 603,821 | 2,970,362 | 1,397,269 |
Professional fees | 2,184,676 | 1,608,623 | 5,181,742 | 4,170,581 |
Rent | 436,352 | 456,014 | 1,069,591 | 1,153,370 |
Salaries and employee expenses | 2,728,199 | 3,223,394 | 7,027,747 | 5,238,224 |
Share-based compensation expense | 1,165,026 | 603,322 | 3,491,445 | 2,896,497 |
General and administrative expenses | $ 11,274,408 | $ 9,051,062 | $ 29,650,515 | $ 22,113,287 |
Research and development expe_3
Research and development expenses (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Research and development expenses | ||||
Labor | $ 5,938,321 | $ 4,035,735 | $ 14,701,655 | $ 9,740,490 |
Materials | 461,120 | 1,254,717 | 1,523,919 | 1,906,467 |
Share-based compensation expense | 142,589 | 144,842 | 601,821 | 671,981 |
Research and development expenses | $ 6,542,030 | $ 5,435,294 | $ 16,827,395 | $ 12,318,938 |
Sales and marketing expenses (D
Sales and marketing expenses (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Sales and marketing expenses | ||||
Consulting | $ 379,874 | $ 310,738 | $ 946,964 | $ 490,337 |
Marketing | 1,418,294 | 980,351 | 3,737,052 | 2,926,079 |
Salaries and benefits | 1,346,884 | 1,302,138 | 4,330,485 | 3,137,092 |
Share-based compensation expense | 26,745 | 85,809 | 81,554 | 448,844 |
Total sales and marketing expenses | $ 3,171,797 | $ 2,679,036 | $ 9,096,055 | $ 7,002,352 |
Segmented information (Details)
Segmented information (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||||||||
Jan. 01, 2021 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | |
Segmented information | ||||||||||
Revenue | $ 1,440,149 | $ 110,139 | $ 4,025,507 | $ 592,524 | ||||||
Gross profit / (loss) | (955,068) | (514) | (4,742,449) | 12,561 | ||||||
Operating expenses | 20,988,235 | 17,165,392 | 55,573,965 | 41,434,577 | ||||||
Current income tax expense | 847 | 850 | ||||||||
Net profit / (loss) | (21,544,803) | $ (20,296,746) | $ (17,831,537) | (12,847,398) | $ (11,447,385) | $ (180,664) | (59,673,086) | (24,475,447) | ||
FX translation | $ (14,539,226) | 30,244 | (11,804) | (25,374) | 97,239 | |||||
Comprehensive profit / (loss) | (21,509,788) | (12,829,710) | (59,631,726) | (24,472,092) | ||||||
Inventory | 8,837,366 | 8,837,366 | $ 3,580,450 | |||||||
Plant and equipment | 19,654,388 | 19,654,388 | 8,386,478 | |||||||
Right-of-use assets | 8,951,938 | 8,951,938 | 1,737,409 | |||||||
Electric Vehicles | ||||||||||
Segmented information | ||||||||||
Revenue | 1,274,523 | 3,452,005 | ||||||||
Gross profit / (loss) | (1,002,132) | (4,758,006) | ||||||||
Operating expenses | (20,980,416) | (17,081,621) | (55,454,276) | (41,232,424) | ||||||
Other items | 399,455 | 4,183,967 | 622,896 | 16,662,028 | ||||||
Current income tax recovery | (847) | (850) | ||||||||
Net profit / (loss) | (21,583,093) | (12,897,654) | (59,590,233) | (24,571,246) | ||||||
FX translation | (5,186) | 882 | (9,334) | 3,210 | ||||||
Comprehensive profit / (loss) | (21,588,279) | (12,896,772) | (59,599,567) | (24,568,036) | ||||||
Inventory | 8,663,070 | 8,663,070 | 3,243,267 | |||||||
Plant and equipment | 19,651,855 | 19,651,855 | 8,379,810 | |||||||
Right-of-use assets | 8,951,938 | 8,951,938 | 1,511,875 | |||||||
Custom Built Vehicles | ||||||||||
Segmented information | ||||||||||
Revenue | 165,626 | 110,139 | 573,502 | 592,524 | ||||||
Gross profit / (loss) | 47,064 | (514) | 15,557 | 12,561 | ||||||
Operating expenses | (7,819) | (83,771) | (119,689) | (202,153) | ||||||
Other items | (955) | 134,541 | 21,279 | 285,391 | ||||||
Net profit / (loss) | 38,290 | 50,256 | (82,853) | 95,799 | ||||||
FX translation | 40,201 | 16,806 | 50,694 | 145 | ||||||
Comprehensive profit / (loss) | 78,491 | $ 67,062 | (32,159) | $ 95,944 | ||||||
Inventory | 174,296 | 174,296 | 337,183 | |||||||
Plant and equipment | $ 2,533 | $ 2,533 | 6,668 | |||||||
Right-of-use assets | $ 225,534 |
Segmented information - Additio
Segmented information - Additional Information (Details) | 9 Months Ended |
Sep. 30, 2022 segment | |
Segmented information | |
Number of reportable business segments | 2 |
Related party transactions - Re
Related party transactions - Related party balances (Details) - USD ($) | Sep. 30, 2022 | Dec. 31, 2021 |
Due to related parties | ||
Related party transactions | ||
Balance due to related parties | $ 0 | $ 743,100 |
Related party transactions - Ke
Related party transactions - Key management personnel compensation (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Related party transactions | ||||
Salary | $ 1,128,057 | $ 2,350,134 | $ 2,439,383 | $ 3,095,936 |
Director fees | 218,283 | 103,777 | 563,336 | 262,641 |
Stock-based compensation | 1,178,751 | 559,734 | 3,296,122 | 2,442,098 |
Key management personnel compensation | $ 2,525,091 | $ 3,013,645 | $ 6,298,841 | $ 5,800,675 |
Financial instruments and fin_3
Financial instruments and financial risk management - Analysis of the contractual maturities (Details) - USD ($) | Sep. 30, 2022 | Dec. 31, 2021 |
Within one year | ||
Financial instruments and financial risk management | ||
Total non-derivative financial liabilities | $ 6,464,719 | $ 7,203,060 |
Between one and five years | ||
Financial instruments and financial risk management | ||
Total non-derivative financial liabilities | 5,781,489 | 921,119 |
More than five years | ||
Financial instruments and financial risk management | ||
Total non-derivative financial liabilities | 10,964,402 | 627,235 |
Trade payables | Within one year | ||
Financial instruments and financial risk management | ||
Total non-derivative financial liabilities | 1,090,554 | 1,249,861 |
Accrued liabilities | Within one year | ||
Financial instruments and financial risk management | ||
Total non-derivative financial liabilities | 4,090,722 | 4,817,820 |
Due to related parties | Within one year | ||
Financial instruments and financial risk management | ||
Total non-derivative financial liabilities | 743,100 | |
Lease liabilities | Within one year | ||
Financial instruments and financial risk management | ||
Total non-derivative financial liabilities | 1,283,443 | 392,279 |
Lease liabilities | Between one and five years | ||
Financial instruments and financial risk management | ||
Total non-derivative financial liabilities | 5,625,988 | 867,757 |
Lease liabilities | More than five years | ||
Financial instruments and financial risk management | ||
Total non-derivative financial liabilities | 10,964,402 | 627,235 |
DSU liabilities | Between one and five years | ||
Financial instruments and financial risk management | ||
Total non-derivative financial liabilities | $ 155,501 | $ 53,362 |
Financial instruments and fin_4
Financial instruments and financial risk management - Financial assets and liabilities that are denominated in CAD (Details) - USD ($) | Sep. 30, 2022 | Sep. 30, 2021 |
Financial instruments and financial risk management | ||
Financial assets and liabilities | $ (333,924) | $ (1,272,527) |
Cash and cash equivalents. | ||
Financial instruments and financial risk management | ||
Financial assets and liabilities | 590,760 | 889,739 |
Restricted cash | ||
Financial instruments and financial risk management | ||
Financial assets and liabilities | 74,968 | 80,697 |
Receivables | ||
Financial instruments and financial risk management | ||
Financial assets and liabilities | 100,802 | 180,632 |
Lease liabilities | ||
Financial instruments and financial risk management | ||
Financial assets and liabilities | (905,243) | (1,511,194) |
Trade payables and accrued liabilities | ||
Financial instruments and financial risk management | ||
Financial assets and liabilities | $ (195,211) | $ (912,401) |
Financial instruments and fin_5
Financial instruments and financial risk management - Classification of financial instruments (Details) - USD ($) | Sep. 30, 2022 | Dec. 31, 2021 |
Financial instruments and financial risk management | ||
Financial assets | $ 154,401,176 | $ 222,348,752 |
Financial liabilities | 23,210,639 | 8,942,617 |
Cash and cash equivalents. | ||
Financial instruments and financial risk management | ||
Financial assets | 153,883,279 | 221,928,008 |
Restricted cash | ||
Financial instruments and financial risk management | ||
Financial assets | 513,527 | 291,676 |
Receivables | ||
Financial instruments and financial risk management | ||
Financial assets | 4,370 | 129,068 |
Non-derivative financial liabilities | Trade payable and accrued liabilities | ||
Financial instruments and financial risk management | ||
Financial liabilities | 5,181,276 | 6,810,781 |
Non-derivative financial liabilities | Lease liabilities | ||
Financial instruments and financial risk management | ||
Financial liabilities | 17,873,833 | 1,887,271 |
Derivative financial liabilities | Derivative liabilities | ||
Financial instruments and financial risk management | ||
Financial liabilities | $ 155,530 | $ 244,565 |
Financial instruments and fin_6
Financial instruments and financial risk management - Additional information (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Jan. 01, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Financial instruments and financial risk management | |||||
Impact of net loss | $ (14,539,226) | $ 30,244 | $ (11,804) | $ (25,374) | $ 97,239 |
Percentage of volatility used was increased | 10% | ||||
Derivative financial liabilities | $ 89 | $ 89 | |||
Increase in derivative liabilities if volatility used was increased by 10% | 227,681 | ||||
Interest rate risk | |||||
Financial instruments and financial risk management | |||||
Impact of net loss | $ 111,943 | ||||
Decrease in market interest rates | 0.10% | ||||
Foreign exchange risk | |||||
Financial instruments and financial risk management | |||||
Change in the CAD to the USD exchange rate | 10% | ||||
Impact of net loss | $ 33,392 | $ 127,253 |
Commitments (Details)
Commitments (Details) - USD ($) | Sep. 30, 2022 | Dec. 31, 2021 |
Future minimum lease payments | ||
Additional capital commitments | $ 3,140,351 | $ 2,686,537 |
Lease commitments | ||
Future minimum lease payments | ||
Total | 401,483 | |
2022 | Lease commitments | ||
Future minimum lease payments | ||
Total | 323,236 | |
2023 | Lease commitments | ||
Future minimum lease payments | ||
Total | $ 78,247 |
Subsequent events (Details)
Subsequent events (Details) | 9 Months Ended |
Sep. 30, 2022 USD ($) | |
Subsequent events | |
Number of options granted | 687,336 |
Weighted average remaining contractual life | 36 months |
Subsequent events - Additional
Subsequent events - Additional information (Details) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2022 USD ($) shares | Sep. 30, 2022 $ / shares | Sep. 30, 2021 USD ($) | Sep. 30, 2022 USD ($) | Sep. 30, 2021 USD ($) | |
Disclosure of non-adjusting events after reporting period [line items] | |||||
Number of shares issued for stock option exercised | shares | 137,976 | ||||
Proceeds from exercise of options | $ 5,777 | $ 645,750 | $ 349,843 | $ 1,145,538 | |
Share issued price | $ / shares | $ 0.30 | ||||
Gross proceeds | $ 5,777 |