Document And Entity Information
Document And Entity Information | 12 Months Ended |
Dec. 31, 2020shares | |
Document Information Line Items | |
Entity Registrant Name | Versus Systems Inc. |
Document Type | 20-F |
Current Fiscal Year End Date | --12-31 |
Entity Common Stock, Shares Outstanding | 10,733,586 |
Amendment Flag | false |
Entity Central Index Key | 0001701963 |
Entity Current Reporting Status | No |
Entity Voluntary Filers | No |
Entity Filer Category | Non-accelerated Filer |
Entity Well-known Seasoned Issuer | No |
Document Period End Date | Dec. 31, 2020 |
Document Fiscal Year Focus | 2020 |
Document Fiscal Period Focus | FY |
Entity Emerging Growth Company | true |
Entity Shell Company | false |
Entity Ex Transition Period | false |
Document Annual Report | true |
Document Shell Company Report | false |
Document Transition Report | false |
Entity File Number | 001-39885 |
Entity Incorporation, State or Country Code | A1 |
Entity Interactive Data Current | Yes |
Consolidated Statements of Fina
Consolidated Statements of Financial Position | Dec. 31, 2020CAD ($) | Dec. 31, 2019CAD ($) |
Current assets | ||
Cash | $ 2,965,957 | $ 99,209 |
Receivables (Note 4) | 603,870 | 44,400 |
Deferred financing costs (Note 3 and 19) | 517,360 | |
Prepaids | 23,675 | 28,003 |
Total current assets | 4,110,862 | 171,612 |
Restricted deposit (Note 5) | 11,497 | 11,500 |
Deposits | 127,812 | 129,897 |
Property and equipment (Note 6) | 625,938 | 948,998 |
Intangible assets (Note 8) | 2,256,903 | 2,780,347 |
Total Assets | 7,133,012 | 4,042,354 |
Current liabilities | ||
Accounts payable and accrued liabilities (Note 9 and 12) | 1,894,825 | 975,405 |
Notes payable (Note 10) | 2,975,747 | |
Lease liability (Note 17) | 271,669 | 328,373 |
Current liabilities | 5,142,241 | 1,303,778 |
Non-current liabilities | ||
Lease liability (Note 17) | 561,316 | 794,027 |
Notes payable (Note 10) | 2,906,838 | 4,814,767 |
Total liabilities | 8,610,395 | 6,912,572 |
Share capital (Note 11) | ||
Common shares | 108,788,385 | 99,505,558 |
Class A shares | 37,927 | 37,927 |
Share subscriptions received in advance | 300,000 | |
Reserves (Note 11) | 11,513,554 | 9,832,386 |
Deficit | (114,270,214) | (106,521,639) |
Equity attributable to owners of parent | 6,069,652 | 3,154,232 |
Non-controlling interest (Note 7) | (7,547,035) | (6,024,450) |
Total Equity | (1,477,383) | (2,870,218) |
Total Liabilities and Equity | $ 7,133,012 | $ 4,042,354 |
Consolidated Statements of Loss
Consolidated Statements of Loss and Comprehensive Loss - CAD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Consolidated Statements of Loss and Comprehensive Loss [Abstract] | |||
REVENUES | $ 1,864,709 | $ 664,922 | $ 1,620 |
EXPENSES | |||
Cost of Sales | 170 | ||
Amortization (Note 6) | 323,060 | 327,221 | 29,642 |
Amortization of intangible assets (Note 8) | 1,706,972 | 2,530,590 | 2,965,035 |
Consulting fees (Note 12) | 624,136 | 814,128 | 1,177,405 |
Foreign exchange loss | 33,160 | 38,797 | 147,273 |
Office and miscellaneous expenses | 343,240 | 424,992 | 854,242 |
Interest expense | 233,388 | 225,334 | 77,669 |
Interest expense on lease obligations (Note 17) | 80,640 | 104,384 | |
Professional fees | 1,047,086 | 445,603 | 621,979 |
Salaries and wages (Note 10 and 12) | 3,440,720 | 3,252,789 | 2,074,554 |
Sales and marketing | 652,303 | 787,398 | 199,412 |
Software and delivery costs | 346,005 | 244,594 | 451,410 |
Share-based compensation (Note 11) | 1,407,414 | 839,249 | 651,316 |
Operating loss | (8,373,415) | (9,370,157) | (9,248,487) |
Finance expense (Note 10) | (371,061) | (257,448) | (125,903) |
Loss on disposal of marketable securities (Note 11) | (508,050) | ||
Other (expense) income | (18,634) | 1,219 | |
Loss and comprehensive loss | (9,271,160) | (9,627,605) | (9,373,171) |
Loss and comprehensive loss attributable to: | |||
Shareholders | (7,748,575) | (6,869,121) | (4,631,477) |
Non-controlling interest | (1,522,585) | (2,758,484) | (4,741,694) |
Comprehensive income | $ (9,271,160) | $ (9,627,605) | $ (9,373,171) |
Basic and diluted loss per common share attributable to Versus Systems Inc. (in Dollars per share) | $ (0.84) | $ (0.98) | $ (0.86) |
Weighted average common shares outstanding (in Shares) | 9,724,701 | 7,032,150 | 5,398,326 |
Consolidated Statement of Chang
Consolidated Statement of Changes in Equity (Deficit) - CAD ($) | Number of Common Shares | Number of Class “A” Shares | Share Capital Common Shares | Share Capital Class “A” Shares | Reserves | Deficit | Share subscriptions received | Equity | Non-controlling Interest | Total |
Balance at Dec. 31, 2017 | $ 88,302,958 | $ 37,927 | $ 6,922,770 | $ (90,341,608) | $ 4,922,047 | $ (1,151,915) | $ 3,770,132 | |||
Balance (in Shares) at Dec. 31, 2017 | 4,797,431 | 5,057 | ||||||||
Shares issued for warrant exercise | 384,000 | 384,000 | 384,000 | |||||||
Shares issued for warrant exercise (in Shares) | 153,750 | |||||||||
Shares issued in private placement | 3,598,943 | 78,957 | 3,677,900 | 3,677,900 | ||||||
Shares issued in private placement (in Shares) | 766,230 | |||||||||
Share issuance costs | (562,884) | 116,226 | (446,658) | (446,658) | ||||||
Contribution benefit | 500,921 | 500,921 | 500,921 | |||||||
Performance warrants issued | 140,531 | 140,531 | 140,531 | |||||||
Stock options granted | 510,785 | 510,785 | 510,785 | |||||||
Loss and comprehensive loss | (4,631,477) | (4,631,477) | (4,741,694) | (9,373,171) | ||||||
Balance at Dec. 31, 2018 | 91,723,017 | 37,927 | 8,270,190 | (94,973,085) | 5,058,049 | (5,893,609) | (835,560) | |||
Balance (in Shares) at Dec. 31, 2018 | 5,717,412 | 5,057 | ||||||||
Shares issued in private placement | 6,101,525 | 199,753 | 6,301,278 | 6,301,278 | ||||||
Shares issued in private placement (in Shares) | 2,003,164 | |||||||||
Share subscriptions received | 300,000 | 300,000 | 300,000 | |||||||
Acquisition of Versus LLC | 1,892,012 | 159,778 | (4,679,433) | (2,627,643) | 2,627,643 | |||||
Acquisition of Versus LLC (in Shares) | 576,834 | |||||||||
Exercise of warrants | 422,670 | (8,253) | 414,417 | 414,417 | ||||||
Exercise of warrants (in Shares) | 154,990 | |||||||||
Exercise of options | 19,369 | (8,369) | 11,000 | 11,000 | ||||||
Exercise of options (in Shares) | 3,125 | |||||||||
Stock-based compensation | 826,360 | 826,360 | 826,360 | |||||||
Share issuance costs | (653,035) | 82,928 | (570,107) | (570,107) | ||||||
Contribution benefit | 297,110 | 297,110 | 297,110 | |||||||
Performance warrants issued | 12,889 | 12,889 | 12,889 | |||||||
Loss and comprehensive loss | (6,869,121) | (6,869,121) | (2,758,484) | (9,627,605) | ||||||
Balance at Dec. 31, 2019 | 99,505,558 | 37,927 | 9,832,386 | (106,521,639) | 300,000 | 3,154,232 | (6,024,450) | (2,870,218) | ||
Balance (in Shares) at Dec. 31, 2019 | 8,455,525 | 5,057 | ||||||||
Shares issued in private placement | 3,328,899 | 55,210 | 3,384,109 | 3,384,109 | ||||||
Shares issued in private placement (in Shares) | 947,532 | |||||||||
Share subscriptions received | 300,000 | (300,000) | ||||||||
Exercise of warrants | 4,583,093 | 4,583,093 | 4,583,093 | |||||||
Exercise of warrants (in Shares) | 1,056,143 | |||||||||
Shares issued for services and investment | 1,047,782 | 1,047,782 | 1,047,782 | |||||||
Shares issued for services and investment (in Shares) | 270,636 | |||||||||
Exercise of options | 23,053 | (9,953) | 13,100 | 13,100 | ||||||
Exercise of options (in Shares) | 3,750 | |||||||||
Stock-based compensation | 1,407,414 | 1,407,414 | 1,407,414 | |||||||
Contribution benefit | 228,497 | 228,497 | 228,497 | |||||||
Loss and comprehensive loss | (7,748,575) | (7,748,575) | (1,522,585) | (9,271,160) | ||||||
Balance at Dec. 31, 2020 | $ 108,788,385 | $ 37,927 | $ 11,513,554 | $ (114,270,214) | $ 6,069,652 | $ (7,547,035) | $ (1,477,383) | |||
Balance (in Shares) at Dec. 31, 2020 | 10,733,586 | 5,057 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows | 12 Months Ended | ||
Dec. 31, 2020CAD ($) | Dec. 31, 2019CAD ($) | Dec. 31, 2018CAD ($) | |
CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES | |||
Loss for the year | $ (9,271,160) | $ (9,627,605) | $ (9,373,171) |
Items not affecting cash: | |||
Amortization (Note 6) | 24,062 | 30,695 | 29,642 |
Amortization of intangible assets (Note 8) | 1,706,972 | 2,530,590 | 2,965,035 |
Amortization of right-of-use assets (Note 6) | 298,998 | 296,526 | |
Shares issued for services (Note 11) | 349,225 | ||
Finance expense | 371,061 | 257,448 | 125,903 |
Interest expense | 80,637 | 273,574 | 77,669 |
Loss on sale of investment | 508,050 | ||
Factoring fees | 50,306 | ||
Effect of foreign exchange | 41,855 | (86,125) | |
Forgiveness on government loan (Note 10) | (601,668) | ||
Share-based compensation | 1,407,414 | 839,249 | 651,316 |
Changes in non-cash working capital items: | |||
Receivables | (559,470) | (39,622) | 5,454 |
Prepaids and deposits | 4,327 | 34,369 | (36,000) |
Accounts payable and accrued liabilities | 495,829 | 23,026 | 478,207 |
Cash used in operating activities | (5,093,562) | (5,467,875) | (5,075,945) |
FINANCING ACTIVITIES | |||
Proceeds from notes payable | 1,261,254 | 2,633,667 | 3,106,652 |
Proceeds from government PPP loan (Note 10) | 829,937 | ||
Repayment of notes payable | (336,000) | (1,258,194) | |
Proceeds from share issuances, net | 7,980,413 | 6,156,588 | |
Payments for lease liabilities | (409,819) | (359,119) | 4,061,900 |
Receivable factoring costs | (50,306) | ||
Proceeds from subscriptions received in advance | 300,000 | ||
Deferred financing costs | (93,768) | (446,659) | |
Cash provided by financing activities | 9,181,711 | 7,472,942 | 6,721,893 |
INVESTING ACTIVITIES | |||
Proceeds from sale of investments | 190,396 | ||
Development of intangible assets | (1,411,797) | (1,939,858) | (1,804,207) |
Purchase of equipment | (38,843) | ||
Cash used in investing activities | (1,221,401) | (1,939,858) | (1,842,690) |
Change in cash during the year | 2,866,748 | 65,209 | (196,742) |
Cash - Beginning of year | 99,209 | 34,000 | 230,742 |
Cash - End of year | $ 2,965,957 | $ 99,209 | $ 34,000 |
Nature of Operations and Going
Nature of Operations and Going Concern | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure Of Nature Of Operation And Going Concern Explanatory [Abstract] | |
NATURE OF OPERATIONS AND GOING CONCERN | 1. NATURE OF OPERATIONS AND GOING CONCERN Versus Systems Inc. (the “Company”) was continued under the Business Corporations Act (British Columbia) effective January 2, 2007. The Company’s head office and registered and records office is 1558 West Hastings Street, Vancouver, BC, V6C 3J4, Canada. The Company is traded on the Canadian Securities Exchange (“CSE”) under the symbol “VS” and on the OTCQB market under the trading symbol “VRSSF”. Subsequent to December 31, 2020 the Company voluntarily delisted from the CSE. On November 20, 2020, the Company filed a registration statement on Form F-1 with the U.S. Securities and Exchange Commission. The proposed offering contemplated by the registration statement is an initial public offering in the United States of the Company’s units, each unit consisting of one common share in the capital of the Company and two warrants, each to purchase one additional common share in the capital of the Company. The offering was finalized in January 2021 (Note 19). During the year ended December 31, 2020, the Company completed a one-for-16 reverse stock split of the Company’s common shares. All share and per share data are presented to reflect the reverse share split on a retroactive basis. The Company is engaged in the technology sector and is developing a business-to-business software platform that allows video game publishers and developers to offer prize-based matches of their games to their players. These consolidated financial statements have been prepared on the assumption that the Company will continue as a going concern, meaning it will continue in operation for the foreseeable future and will be able to realize assets and discharge liabilities in the ordinary course of operations. Different bases of measurement may be appropriate if the Company is not expected to continue operations for the foreseeable future. As of December 31, 2020, the Company has not achieved positive cash flow from operations and is not able to finance day to day activities through operations. Subsequent to year end, the Company completed a public offering with total proceeds of approximately US$11 million. The Company estimates that it has adequate financial resources for the next twelve months. The Company’s continuation as a going concern is dependent upon its ability to attain profitable operations and generate funds therefrom and/or raise equity capital or borrowings sufficient to meet current and future obligations. These consolidated financial statements do not include any adjustments to the recoverability and classification of recorded asset amounts and classification of liabilities that might be necessary should the Company be unable to continue as a going concern. These adjustments could be material. COVID-19 Pandemic In March 2020 the World Health Organization declared COVID-19 a global pandemic. This contagious disease outbreak, which has continued to spread, and any related adverse public health developments, has adversely affected workforces, economies, and financial markets globally, potentially leading to an economic downturn. Although it is not possible to reliably estimate the length or severity of these developments and their financial impact to the date of approval of these financial statements, these conditions could have a significant adverse impact on the Company’s financial position and results of operations for future periods. |
Basis of Presentation
Basis of Presentation | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure of basis of consolidation [text block] [Abstract] | |
BASIS OF PRESENTATION | 2. BASIS OF PRESENTATION Statement of compliance These consolidated financial statements, including comparatives, have been prepared in accordance with International Financial Reporting Standards (collectively, “IFRS”) as issued by the International Accounting Standards Board (“IASB”) and Interpretations issued by the International Financial Reporting Interpretations Committee (“IFRIC”). These consolidated financial statements were authorized for issue by the Board of Directors on May 3, 2021. Basis of measurement These consolidated financial statements have been prepared on a historical cost basis, except for financial instruments measured at their fair value. In addition, these consolidated financial statements have been prepared using the accrual basis of accounting except for cash flow information. Functional and presentation currency These consolidated financial statements are presented in Canadian dollars, unless otherwise noted, which is the functional currency of the Company and its subsidiaries. Basis of consolidation These consolidated financial statements include the accounts of Versus Systems Inc. and its subsidiaries, from the date control was acquired. Control exists when the Company possesses power over an investee, has exposure to variable returns from the investee and has the ability to use its power over the investee to affect its returns. All inter-company balances and transactions, and any unrealized income and expenses arising from inter-company transactions, are eliminated on consolidation. For partially owned subsidiaries, the interest attributable to non-controlling shareholders is reflected in non-controlling interest. Adjustments to non-controlling interest are accounted for as transactions with owners and adjustments that do not involve the loss of control are based on a proportionate amount of the net assets of the subsidiary. Name of Subsidiary Place of Incorporation Proportion of Ownership Interest Principal Activity Versus Systems (Holdco) Inc. United States of America 66.8 % Holding Company Versus Systems UK, Ltd United Kingdom 66.8 % Sales Company Versus LLC United States of America 66.8 % Technology Company Significant Accounting Judgments, Estimates and Assumptions The preparation of these consolidated financial statements requires management to make certain estimates, judgments and assumptions that affect the reported amounts of assets and liabilities at the date of the consolidated financial statements. Estimates and assumptions are continually evaluated and are based on historical experience and management’s assessment of current events and other facts and circumstances that are considered to be relevant. Actual results could differ from these estimates. Significant assumptions about the future and other sources of estimation uncertainty that management has made at the end of the reporting year, that could result in a material adjustment to the carrying amounts of assets and liabilities in the event that actual results differ from assumptions made, relate to, but are not limited to, the following: i) Deferred income taxes Deferred tax assets, including those arising from un-utilized tax losses, require management to assess the likelihood that the Company will generate sufficient taxable earnings in future periods in order to utilize recognized deferred tax assets. Assumptions about the generation of future taxable profits depend on management’s estimates of future cash flows. In addition, future changes in tax laws could limit the ability of the Company to obtain tax deductions in future periods. To the extent that future cash flows and taxable income differ significantly from estimates, the ability of the Company to realize the net deferred tax assets recorded at the reporting date could be impacted. ii) Economic recoverability and probability of future economic benefits of intangible assets Management has determined that intangible asset costs which were capitalized may have future economic benefits and may be economically recoverable. Management uses several criteria in its assessments of economic recoverability and probability of future economic benefits including anticipated cash flows and estimated economic life. iii) Valuation of share-based compensation The Company uses the Black-Scholes Option Pricing Model for valuation of share-based compensation. Option pricing models require the input of subjective assumptions including expected price volatility, interest rate, and forfeiture rate. Changes in the input assumptions can materially affect the fair value estimate and the Company’s earnings and equity reserves. iv) Depreciation and Amortization The Company’s intangible assets and equipment are depreciated and amortized on a straight-line basis, taking into account the estimated useful lives of the assets and residual values. Changes to these estimates may affect the carrying value of these assets, net loss, and comprehensive income (loss) in future periods. v) Determination of functional currency The functional currency of the Company and its subsidiaries is the currency of the primary economic environment in which each entity operates. Determination of the functional currency may involve certain judgments to determine the primary economic environment. The functional currency may change if there is a change in events and conditions which determines the primary economic environment. vi) Revenue Recognition The Company’s contracts with customers may include promises to transfer multiple products and services. For these contracts, the Company accounts for individual performance obligations separately if they are capable of being distinct and distinct within the context of the contract. Determining whether products and services are considered distinct performance obligations may require significant judgment. Judgment is also required to determine the stand-alone selling price, for each distinct performance obligation. |
Significant Accounting Policies
Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
SIGNIFICANT ACCOUNTING POLICIES | 3. SIGNIFICANT ACCOUNTING POLICIES Basic and diluted loss per share Basic earnings (loss) per share is computed by dividing net earnings (loss) available to common shareholders by the weighted average number of shares outstanding during the reporting periods. Diluted earnings (loss) per share is computed similar to basic earnings (loss) per share except that the weighted average shares outstanding are increased to include additional shares for the assumed exercise of stock options and warrants, if dilutive. The number of additional shares is calculated by assuming that outstanding stock options and warrants were exercised and that the proceeds from such exercises were used to acquire common stock at the average market price during the reporting periods. Potentially dilutive options and warrants excluded from diluted loss per share totaled 4,671,713 (2019 – 3,656,318) as they were anti-dilutive. Property and Equipment Property and equipment is recorded at cost less accumulated amortization and any impairments. Amortization is calculated based on the estimated residual value and estimated economic life of the specific assets using the straight-line method over the period indicated below: Asset Rate Computers Straight line, 3 years Right of use assets Shorter of useful life or lease term Financial instruments Classification The Company classifies its financial instruments in the following categories: at fair value through profit and loss (“FVTPL”), at fair value through other comprehensive income (loss) (“FVTOCI”), or at amortized cost. The Company determines the classification of financial assets at initial recognition. The classification of debt instruments is driven by the Company’s business model for managing the financial assets and their contractual cash flow characteristics. Equity instruments that are held for trading are classified as FVTPL. For other equity instruments, on the day of acquisition the Company can make an irrevocable election (on an instrument-by-instrument basis) to designate them as FVTOCI. Financial liabilities are measured at amortized cost, unless they are required to be measured at FVTPL (such as instruments held for trading or derivatives) or the Company has opted to measure them at FVTPL. The following table shows the classification of financial instruments: Financial assets/liabilities Classification Cash FVTPL Receivables Amortized cost Restricted deposit Amortized cost Deposit Amortized cost Accounts payable and accrued liabilities Amortized cost Notes payable Amortized cost Measurement Financial assets and liabilities at amortized cost Financial assets and liabilities at amortized cost are initially recognized at fair value plus or minus transaction costs, respectively, and subsequently carried at amortized cost less any impairment. Financial assets and liabilities at FVTPL Financial assets and liabilities carried at FVTPL are initially recorded at fair value and transaction costs are expensed in profit or loss. Realized and unrealized gains and losses arising from changes in the fair value of the financial assets and liabilities held at FVTPL are included in profit or loss in the period in which they arise. Impairment of financial assets at amortized cost An ‘expected credit loss’ impairment model applies which requires a loss allowance to be recognized based on expected credit losses. The estimated present value of future cash flows associated with the asset is determined and an impairment loss is recognized for the difference between this amount and the carrying amount as follows: the carrying amount of the asset is reduced to estimated present value of the future cash flows associated with the asset, discounted at the financial asset’s original effective interest rate, either directly or through the use of an allowance account and the resulting loss is recognized in profit or loss for the period. In a subsequent period, if the amount of the impairment loss related to financial assets measured at amortized cost decreases, the previously recognized impairment loss is reversed through profit or loss to the extent that the carrying amount of the investment at the date the impairment is reversed does not exceed what the amortized cost would have been had the impairment not been recognized. Derecognition Financial assets The Company derecognizes financial assets only when the contractual rights to cash flows from the financial assets expire, or when it transfers the financial assets and substantially all of the associated risks and rewards of ownership to another entity. Gains and losses on derecognition are generally recognized in profit or loss. As of December 31, 2020, the Company does not have any derivative financial assets and liabilities. Intangible assets excluding goodwill Intangible assets acquired separately are carried at cost at the time of initial recognition. Intangible assets acquired in a business combination and recognized separately from goodwill are initially recognized at their fair value at the acquisition date. Expenditure on research activities is recognized as an expense in the period in which it is incurred. Intangibles with a finite useful life are amortized and those with an indefinite useful life are not amortized. The useful life is the best estimate of the period over which the asset is expected to contribute directly or indirectly to the future cash flows of the Company. The useful life is based on the duration of the expected use of the asset by the Company and the legal, regulatory or contractual provisions that constrain the useful life and future cash flows of the asset, including regulatory acceptance and approval, obsolescence, demand, competition and other economic factors. If an income approach is used to measure the fair value of an intangible asset, the Company considers the period of expected cash flows used to measure the fair value of the intangible asset, adjusted as appropriate for Company-specific factors discussed above, to determine the useful life for amortization purposes. If no regulatory, contractual, competitive, economic or other factors limit the useful life of the intangible to the Company, the useful life is considered indefinite. Intangibles with a finite useful life are amortized on the straight-line method unless the pattern in which the economic benefits of the intangible asset are consumed or used up are reliably determinable. The Company evaluates the remaining useful life of intangible assets each reporting period to determine whether any revision to the remaining useful life is required. If the remaining useful life is changed, the remaining carrying amount of the intangible asset will be amortized prospectively over the revised remaining useful life. The Company’s intangible asset is amortized on a straight-line basis over 3 years. In the year development costs are incurred, amortization is based on a half year. Deferred Financing Costs Deferred financing costs consist primarily of direct incremental costs related to the Company’s public offering of its common stock, which was completed in January 2021 (See Note 19). Upon completion of the Company’s public offering any deferred cost will be offset against the proceeds of the offering. The Company incurred $517,360 of deferred financing cost during the year ended December 31, 2020. Impairment of intangible assets excluding goodwill An internally-generated intangible asset arising from development (or from the development phase of an internal project) is recognized if, and only if, all of the following have been demonstrated: (a) the technical feasibility of completing the intangible asset so that it will be available for use or sale; (b) the intention to complete the intangible asset and use or sell it; (c) the ability to use or sell the intangible asset; (d) how the intangible asset will generate probable future economic benefits; (e) the availability of adequate technical, financial and other resources to complete the development and to use or sell the intangible asset; and (f) the ability to measure reliably the expenditure attributable to the intangible asset during its development. The amount initially recognized for internally-generated intangible assets is the sum of the costs incurred from the date when the intangible assets first meet the recognition criteria listed above. If no future economic benefit is expected before the end of the life of assets, the residual book value is expensed. Subsequent to initial recognition, internally-generated intangible assets are reported at cost. Where no internally-generated intangible asset can be recognized, development costs are recognized as an expense in the period in which it is incurred. At the end of each reporting period, the Company reviews the carrying amounts of its intangible assets to determine whether there is any indication that those assets have suffered impairment losses. If any such indication exists, the recoverable amount of the cash-generating unit (“CGU”) to which the asset belongs is estimated in order to determine the extent of the impairment losses (if any). Where a reasonable and consistent basis of allocation can be identified, corporate assets (assets other than goodwill that contribute to the future cash flows of both the CGU under review and other CGUs) are also allocated to individual CGUs, or otherwise they are allocated to the smallest group of CGUs for which a reasonable and consistent allocation basis can be identified. Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted. If the recoverable amount of an asset (or CGU) is estimated to be less than its carrying amount, the carrying amount of the asset (or CGU) is reduced to its recoverable amount. Where impairment losses subsequently reverse, the carrying amount of the asset (or CGU) is increased to the revised estimate of its recoverable amount, such that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment losses been recognized for the asset (or CGU) in prior years. A reversal of impairment losses is recognized immediately in profit or loss. Income taxes Tax expense recognized in profit or loss comprises the sum of current tax and deferred tax not recognized in other comprehensive income or directly in equity. Current Income Tax Current income tax assets and/or liabilities comprise those claims from, or obligations to, fiscal authorities relating to the current or prior reporting periods that are unpaid at the reporting date. Current tax is payable on taxable profit, which differs from profit or loss in the financial statements. Calculation of current tax is based on tax rates and tax laws that have been enacted or substantively enacted by the end of the reporting period. Deferred income tax Deferred income taxes are calculated based on temporary differences between the carrying amounts of assets and liabilities and their tax bases. Deferred tax assets and liabilities are calculated, without discounting, at tax rates that are expected to apply to their respective period of realization, provided they are enacted or substantively enacted by the end of the reporting period. Deferred tax assets are recognized to the extent that it is probable that they will be able to be utilized against future taxable income. Deferred tax assets and liabilities are offset only when the Company has a right and intention to offset current tax assets and liabilities from the same taxation authority. Changes in deferred tax assets or liabilities are recognized as a component of tax income or expense in profit or loss, except where they relate to items that are recognized in other comprehensive income or directly in equity, in which case the related deferred tax is also recognized in other comprehensive income or equity, respectively. Leases Leases are recognized as a right-of-use asset and a corresponding liability at the date at which the leased asset is available for use by the Company. Assets and liabilities arising from a lease are initially measured on a present value basis. Right-of-use assets are measured at cost comprising the following: - the amount of the initial measurement of lease liability; - any lease payments made at or before the commencement date less any lease incentives received; - any initial direct costs; and - restoration costs. The Company assesses whether a contract is or contains a lease, at inception of a contract. The Company recognizes a right-of-use asset and a corresponding lease liability with respect to all lease agreements in which it is the lessee. The lease liability is initially measured at the present value of the lease payments that are not paid at the commencement date, discounted by using the rate implicit in the lease. If this rate cannot be readily determined, the Company uses its incremental borrowing rate. The lease liability is subsequently measured by increasing its carrying amount to reflect interest on the lease liability (using the effective interest method) and by reducing the carrying amount to reflect lease payments made. The right-of-use asset is depreciated over the shorter of the lease term and the useful life of the underlying asset. The Company applies IAS 36, Impairment of Assets, to determine whether the asset is impaired and account for any identified impairment loss. As a practical expedient, IFRS 16 permits a lease not to separate non-lease components, and instead account for any lease and associated non-lease components as a single arrangement. The Company has not used this practical expedient, and accordingly allocates the consideration in the contract to lease and non-lease components based on the stand-alone price of the lease component and aggregate stand-alone price of the non-lease components. Variable rents that do not depend on an index or rate are not included in the measurement of the lease liability and the right-of-use asset. The related payments are recognized as an expense in the period in which the event or condition that triggers those payments occurs and are presented as such in profit or loss. Provisions A provision is recognized if, as a result of a past event, the Company has a present legal or constructive obligation that can be estimated reliably and it is probable that an outflow of economic benefits will be required to settle the obligation. Provisions are determined by discounting the expected future cash flows at a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the liability. Government grant Government grant is recognized when there is reasonable assurance that the Company will comply with any conditions attached to the grant and the grant will be received. Government grant is recognized in profit or loss to offset the corresponding expenses on a systematic basis over the periods in which the Company recognizes expenses for the related costs for which the grants are intended to compensate, which in the case of grants related to assets requires setting up the grant as deferred income or deducting it from the carrying amount of the asset. Non-controlling interest Non-controlling interest in the Company’s less than wholly owned subsidiary is classified as a separate component of equity. On initial recognition, non-controlling interest is measured at the fair value of the non-controlling entity’s contribution into the related subsidiary. Subsequent to the original transaction date, adjustments are made to the carrying amount of non-controlling interest for the non-controlling interest’s share of changes to the subsidiary’s equity. Changes in the Company’s ownership interest in a subsidiary that do not result in a loss of control are recorded as equity transactions. The carrying amount of non-controlling interest is adjusted to reflect the change in the non-controlling interest’s relative interest in the subsidiary, and the difference between the adjustment to the carrying amount of non-controlling interests and the Company’s share of proceeds received and/or consideration paid is recognized directly in equity and attributed to owners of the Company. Valuation of equity units issued in private placements The Company has adopted a residual value method with respect to the measurement of shares and warrants issued as private placement units. The residual value method first allocates value to the most easily measurable component based on fair value and then the residual value, if any, to the less easily measurable component. The fair value of the common shares issued in private placements is determined to be the more easily measurable component and are valued at their fair value. The balance, if any, is allocated to the attached warrants. Any fair value attributed to the warrants is recorded as warrant reserve. If the warrants are exercised, the related amount is reclassified as share capital. If the warrants expire unexercised, the related amount remains in the warrant reserve. Share-based Compensation The Company grants stock options to acquire common shares of the Company to directors, officers, employees and consultants. An individual is classified as an employee when the individual is an employee for legal or tax purposes, or provides services similar to those performed by an employee. The fair value of stock options is measured on the date of grant, using the Black-Scholes option pricing model, and is recognized over the vesting period. Consideration paid for the shares on the exercise of stock options is credited to capital stock. In situations where equity instruments are issued to non-employees and some or all of the goods or services received by the entity as consideration cannot be specifically identified, they are measured at fair value of the share-based payment. Otherwise, share-based payments are measured at the fair value of goods or services received. Revenue recognition In general, the Company recognizes revenue when the amount of revenue can be reliably measured, it is probable that future economic benefits will flow to the Company, where there is evidence of an arrangement, when the selling price is fixed or determinable, and when specific criteria have been met or there are no significant remaining performance obligations for each of the Company’s activities as described below. Foreseeable losses, if any, are recognized in the year or period in which the loss is determined. The Company earns revenue in two primary ways: 1) development and maintenance of custom-built software or other professional services, or 2) the sale of advertising. The Company recognizes revenues received from the development and maintenance of custom-built software and other professional services provided upon the satisfaction of its performance obligation in an amount that reflects the consideration to which the Company expects to be entitled in exchange for those services. Performance obligations can be satisfied either at a single point in time or over time. For those performance obligations that are satisfied at a single point in time, the revenue is recognized at that time. For each performance obligation satisfied over time, the Company recognizes revenue by measuring the progress toward complete satisfaction of that performance obligation. For revenues received from the sales of advertising, the Company is deemed the agent in its revenue agreements. The Company does not own or obtain control of the digital advertising inventory. The Company recognizes revenues upon the achievement of agreed-upon performance criteria for the advertising inventory, such as a number of views, or clicks. As the Company is acting as an agent in the transaction, the Company recognizes revenue from sales of advertising on a net basis, which excludes amounts payable to partners under the Company’s revenue sharing agreements. The Company’s contracts with customers may include promises to transfer multiple products and services. For these contracts, the Company accounts for individual performance obligations separately if they are capable of being distinct and distinct within the context of the contract. Determining whether products and services are considered distinct performance obligations may require significant judgment. Judgment is also required to determine the stand-alone selling price, for each distinct performance obligation. As the Company’s performance obligations are satisfied within 12 months, the Company has elected the practical expedients under IFRS 15, which allows the Company not to record any significant financing component as a result of financing any of its arrangements and not to capitalize cost incurred to obtain a contract. Deferred Revenue Revenue recognition of sales is recorded on a monthly basis upon delivery or as the services are provided. Cash received in advance for services are recorded as deferred revenue based on the proportion of time remaining under the service arrangement as of the reporting date. Foreign Exchange The functional currency is the currency of the primary economic environment in which the entity operates and has been determined for each entity within the Company. The functional currency for the Company and its subsidiaries is the Canadian dollar. The functional currency determinations were conducted through an analysis of the consideration factors identified in IAS 21, The Effects of Changes in Foreign Exchange Rates. Transactions in currencies other than the Canadian dollar are recorded at exchange rates prevailing on the dates of the transactions. At the end of each reporting period, the monetary assets and liabilities of the Company and its subsidiaries that are denominated in foreign currencies are translated at the rate of exchange at the date of the statement of financial position while non-monetary assets and liabilities are translated at historical rates. Revenues and expenses are translated at the exchange rates approximating those in effect on the date of the transactions. Exchange gains and losses arising on translation are included in profit or loss. Comprehensive Income (Loss) Comprehensive income (loss) consists of net income (loss) and other comprehensive income (loss) and represents the change in equity (deficiency) which results from transactions and events from sources other than the Company’s shareholders. Net loss is the same as comprehensive loss for the years presented. |
Accounts Receivable
Accounts Receivable | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure Of Accounts Receivable [Abstract] | |
ACCOUNTS RECEIVABLE | 4. ACCOUNTS RECEIVABLE Accounts receivable consists of amounts due from one customer ($484,790), GST receivable ($29,080) and share subscription receivable ($90,000). The amount of trade receivable included within Receivables on the consolidated statement of financial position was $484,790 and none as of December 31, 2020 and 2019, respectively. There has been no provision for doubtful accounts for the years presented. The Company entered into an Accounts Receivable Purchase and Security Agreement (the “Factor Agreement”) with full recourse. Pursuant to the Factor Agreement, the factor advances funds to the Company for the right to collect cash flows from factored accounts receivable and charges fees for its services. The factor advances funds to the Company at 90% of accounts receivable factored. The outstanding balance bears a daily interest rate of 0.05%. As of December 31, 2020, 100% of the monies owed were collected by the Company and the factoring agent under the terms of the Factor Agreement. The Company expenses the fees and interest charged by the factoring agent as a loss on factoring within its financial statements, which totaled $50,306 during the twelve month period ended December 31, 2020. |
Restricted Deposit
Restricted Deposit | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure Of Restricted Deposit [Abstract] | |
RESTRICTED DEPOSIT | 5. RESTRICTED DEPOSIT As of December 31, 2020, restricted deposits consisted of $11,497 (2019 - $11,500) held in a guaranteed investment certificate as collateral for a corporate credit card. |
Property and Equipment
Property and Equipment | 12 Months Ended |
Dec. 31, 2020 | |
Property and Equipment [Abstract] | |
PROPERTY AND EQUIPMENT | 6. PROPERTY AND EQUIPMENT Computers Right of Use Total ($) ($) ($) Cost At December 31, 2017 76,256 - - Additions 38,483 - - At December 31, 2018 114,739 - 114,739 Additions 1,217,109 1,217,109 At December 31, 2019 114,739 1,217,109 1,331,848 Additions - - - At December 31, 2020 114,739 1,217,109 1,331,848 Accumulated amortization At December 31, 2017 25,987 - 25,987 Amortization for the year 29,642 - 29,642 At December 31, 2018 55,629 - 55,629 Amortization for the year 30,695 296,526 327,221 At December 31, 2019 86,324 296,526 382,850 Amortization for the year 24,062 298,998 323,060 At December 31, 2020 110,386 595,524 705,910 Carrying amounts At December 31, 2018 59,110 - 59,110 At December 31, 2019 28,415 920,583 948,998 At December 31, 2020 4,353 621,585 625,938 |
Non-Controlling Interest in Ver
Non-Controlling Interest in Versus LLC | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure of business combinations [text block] [Abstract] | |
NON-CONTROLLING INTEREST IN VERSUS LLC | 7. NON-CONTROLLING INTEREST IN VERSUS LLC As of December 31, 2018, the Company held a 41.3% ownership interest in Versus LLC, a privately held limited liability company organized under the laws of the state of Nevada. The Company consolidates Versus LLC as a result of having full control over the voting shares. Versus LLC is a technology company that is developing a business-to-business software platform that allows video game publishers and developers to offer prize-based matches of their games to their players. On May 21, 2019, the Company acquired an additional 25.2% interest in Versus LLC in exchange for 574,009 common shares of the Company and 287,005 share purchase warrants that are exercisable at $3.20 per share until June 30, 2019. The common shares and the share purchase warrants were determined to have a fair value of $1,882,749 and $156,389, respectively. As a result, the Company increased its ownership interest to 66.5% and recorded the excess purchase price over net identifiable liabilities of $4,644,719 against reserves. The effect on non-controlling interest was a reduction of $2,605,582. On June 21, 2019, the Company acquired an additional 0.3% interest in Versus LLC in exchange for 2,825 common shares of the Company and 1,412 share purchase warrants that are exercisable at $3.20 per share until June 30, 2019. The common shares and the share purchase warrants were determined to have a fair value of $9,263 and $3,389, respectively. As a result, the Company increased its ownership interest to 66.8% and recorded the excess purchase price over net identifiable assets of $34,714 against reserves. The effect on non-controlling interest was a reduction of $22,061. The following table presents summarized financial information before intragroup eliminations for the non-wholly owned subsidiary as of December 31, 2020 and 2019: 2020 2019 2018 Non-controlling interest percentage 33.2% 33.2% 58.7% ($) ($) ($) Assets Current 1,012,081 103,398 72,222 Non-current 2,974,249 3,739,445 3,566,490 3,986,330 3,842,843 3,638,712 Liabilities Current 1,325,230 823,285 740,249 Non-current 22,510,724 17,851,531 11,059,323 23,835,954 18,674,816 11,799,572 Net liabilities (19,849,624 ) (14,831,973 ) (8,160,860 ) Non-controlling interest (7,547,035 ) (6,024,450 ) (5,893,609 ) Loss and comprehensive loss (4,586,099 ) (6,671,113 ) (7,766,709 ) Loss and comprehensive loss attributed to non-controlling interest (1,522,585 ) (2,758,484 ) (4,741,694 ) |
Intangible Assets
Intangible Assets | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure of detailed information about intangible assets [text block] [Abstract] | |
INTANGIBLE ASSETS | 8. INTANGIBLE ASSETS Intangible assets are comprised of a business-to-business software platform that allows video game publishers and developers to offer prize-based matches of their games to their players. the Company continues to develop new apps, therefore additional costs were capitalized during the year ended December 31, 2020. Software ($) Cost At December 31, 2017 7,993,002 Additions 1,804,207 At December 31, 2018 9,797,209 Additions 1,939,858 At December 31, 2019 11,737,067 Additions 1,183,528 At December 31, 2020 12,920,595 Accumulated amortization At December 31, 2017 3,461,095 Amortization 2,965,035 At December 31, 2018 6,426,130 Amortization 2,530,590 At December 31, 2019 8,956,720 Amortization 1,706,972 At December 31, 2020 10,663,692 Carrying amounts At December 31, 2018 3,371,079 At December 31, 2019 2,780,347 At December 31, 2020 2,256,903 |
Accounts Payable and Accrued Li
Accounts Payable and Accrued Liabilities | 12 Months Ended |
Dec. 31, 2020 | |
Accounts Payable And Accrued Liabilitiestext Block [Abstract] | |
ACCOUNTS PAYABLE AND ACCRUED LIABILITIES | 9. ACCOUNTS PAYABLE AND ACCRUED LIABILITIES The Company’s accounts payable and accrued liabilities are comprised of the following: December 31, 2020 December 31, ($) ($) Accounts payable 716,177 446,988 Due to related parties 716,808 492,181 Accrued liabilities 461,840 36,236 1,894,825 975,405 |
Notes Payable
Notes Payable | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure of trade and other payables [text block] [Abstract] | |
NOTES PAYABLE | 10. NOTES PAYABLE During the year ended December 31, 2020, the Company issued unsecured notes payable for total proceeds of $1,261,254 from director and officers of the Company who are also shareholders. The loans bear interest at the prime rate which was 2.45% to 3.95% per annum at December 31, 2020, compounded annually and payable quarterly, and had a maturity date of three years from the date of issuance. The notes were considered below the Company’s estimated market borrowing rate of 10% and as such, a contribution benefit of $228,497 was recorded in reserves. As of December 31, 2020, the Company had recorded $472,107 in accrued interest which was included in accounts payable and accrued liabilities. During the year ended December 31, 2019, the Company issued unsecured notes payable for total proceeds of $2,633,667 from director and officers of the Company who are also shareholders. The loans bear interest at the prime rate which was 3.95% per annum at December 31, 2019, compounded annually and payable quarterly, and had a maturity date of three years from the date of issuance. The notes were considered below the Company’s estimated market borrowing rate of 10% and as such, a contribution benefit of $297,710 was recorded in reserves. As of December 31, 2019, the Company had recorded $249,496 in accrued interest which was included in accounts payable and accrued liabilities. During the twelve months ended December 31, 2020, the Company recorded finance expense of $371,062 (December 31, 2019 - $257,448), related to bringing the notes to their present value. Amount ($) Balance at December 31, 2017 747,322 Proceeds 3,106,652 Contribution benefit (500,921) Finance expense 125,903 Balance at December 31, 2018 3,478,956 Proceeds 2,633,667 Repayments (1,258,194 ) Contribution benefit (297,110 ) Finance expense 257,448 Balance, December 31, 2019 4,814,767 Proceeds 1,261,254 Repayments (336,000 ) Contribution benefit (228,497 ) Finance expense 371,061 Balance, December 31, 2020 5,882,585 Current 2,975,747 Non-current 2,906,838 In May 2020, the Company received loan proceeds in the aggregate amount of $829,937 (USD$610,247) under the Paycheck Protection Program (“PPP”). The PPP, established as part of the CARES Act within the United States of America in response to the COVID-19 pandemic, provides for loans to qualifying businesses. A portion of the loans and accrued interest are forgivable as long as the borrower uses the loan proceeds for eligible purposes, including payroll, benefits, rent and utilities, and maintains its payroll levels. The amount of loan forgiveness will be reduced if the borrower terminates employees or reduces salaries. No collateral or guarantees were provided in connection with the PPP loans. The unforgiven portion of the PPP loans is payable over two years at an interest rate of 1%, with a deferral of payments for the first nine months. The Company used the proceeds for purposes consistent with the PPP. For the year ended December 31, 2020 the Company had incurred eligible payroll cost of $829,937 which were fully offset against the loan balance. Of the total loan balance, $228,269 was applied towards payroll cost capitalized as intangible assets. |
Share Capital and Reserves
Share Capital and Reserves | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure of share capital, reserves and other equity interest [text block] [Abstract] | |
SHARE CAPITAL AND RESERVES | 11. SHARE CAPITAL AND RESERVES a) Authorized share capital An unlimited number of common shares without par value and 5,057 Class “A” shares, Series 1. The Class “A” shares, Series 1 are non-voting and are non-voting and do not have any special rights or restrictions associated with them. b) Issued share capital During the year ended December 31, 2020, the Company: i) issued, 150,000 units at a price of $4.00 per unit for total proceeds of $600,000. Each unit consisted of one common share and a one half share purchase warrant for each share purchased. Each whole warrant entitles the holder to purchase one additional common share at a price of $6.40 until February 17, 2021. ii) issued, 172,532 units at a price of $4.00 per unit for total proceeds of $690,125. Each unit consisted of one common share and one share purchase warrant for each share purchased. Each warrant entitles the holder to purchase one additional common share at a price of $6.40 until July 17, 2022. iii) issued, 625,000 units at a price of $4.00 per unit for total proceeds of $2,500,000. Each unit consisted of one common share and a one half share purchase warrant for each share purchased. Each whole warrant entitles the holder to purchase one additional common share at a price of $6.40 until November 17, 2022. iv) entered into a Mutual Investment Agreement with Animoca Brands Inc. (Animoca) in which the Company issued 181,547 shares of the Company’s common stock with a value of $698,557 in exchange for 4,327,431 shares of Animoca common stock. On the same date, the Company issued an additional 89,088 shares of the Company’s common stock with a value of $349,225 to Animoca in exchange for services (included in professional fees). The Company subsequently sold all of its shares of Animoca and recognized a loss of $508,050. v) Issued, 1,058,993 common shares pursuant to exercise of 1,056,143 warrants and 3,750 stock options for total proceeds of $4,596,193. During the year ended December 31, 2019, the Company: i) issued, 624,228 units at a price of $2.88 per unit for total proceeds of $1,797,778. Each unit consisted of one common share and a one common stock warrant for each share purchased. Each warrant entitles the holder to purchase one additional common share at a price of $4.80 until February 14, 2021. ii) issued, 1,094,844 units pursuant to a private placement at a price of $3.20 per unit for total proceeds of $3,503,500. Each unit consisted of one common share and a one common stock warrant for each share purchased. Each warrant entitles the holder to purchase one additional common share at a price of $5.60 until July 26, 2021. iii) issued, 284,092 units at a price of $3.52 per unit for total proceeds of $1,000,000. Each unit consisted of one common share and one common stock warrant for each share purchased. Each warrant entitles the holder to purchase one additional common share at a price of $5.60 until August 9, 2021. v) issued 576,834 common shares at a value of $1,892,012 on acquisition of Versus LLC shares (Note 6). vi) issued 158,115 common shares pursuant to the exercise of share purchase warrants and stock options for total proceeds of $425,417. During the year ended December 31, 2018, the Company: i) issued, 766,231 units at a price of $4.80 per unit for total proceeds of $3,677,900. Each unit consisted of one common share and a one half common stock warrant for each share purchased. Each whole warrant entitles the holder to purchase one additional common share at a price of $6.40 until April 12, 2020. A residual value of $78,957 was allocated to the warrants. ii) issued 153,750 common shares pursuant to the exercise of share purchase warrants for total proceeds of $384,000. Escrow At December 31, 2020, 313 common shares (December 31, 2019 and 2018 – 313) of the Company are held in escrow due to misplaced share certificates originally issued to three individual shareholders. c) Stock options Pursuant to the policies of the CSE, the Company may grant incentive stock options to its officers, directors, employees and consultants. The Company has implemented a rolling Stock Option Plan (the “Plan”) whereby the Company can issue up to 10% of the issued and outstanding common shares of the Company. Options have a maximum term of ten years and vesting is determined by the Board of Directors. A continuity schedule of outstanding stock options is as follows: Number Weighted Average ($) Balance – December 31, 2017 531,559 4.96 Granted 72,284 5.92 Forfeited (54,319 ) 5.28 Balance – December 31, 2018 549,524 4.96 Granted 482,500 5.28 Exercised (3,125 ) 3.52 Forfeited (15,500 ) 6.72 Balance –December 31, 2019 1,013,399 5.12 Granted 470,083 4.11 Exercised (3,750 ) 3.49 Forfeited (125,907 ) 6.04 Balance – December 31, 2020 1,353,825 4.70 During the year ended December 31, 2020, 470,083 stock options were granted by the Company with a fair value of $1,216,228 (or $2.69 per option). During the year ended December 31, 2020, the Company recorded share-based compensation of $1,407,414 (December 31, 2019 - $826,360) relating to options vested during the year. During the year ended December 31, 2019, the Company granted a total of 482,500 stock options with a fair value of $1,724,580 (or $3.52 per option). During the year ended December 31, 2018, the Company granted a total of 72,284 stock options with a fair value of $343,711 (or $5.92 per option). During the year ended December 31, 2018, the Company recorded share-based compensation of $651,316 relating to options vested during the year. The Company used the following assumptions in calculating the fair value of stock options for the years ended: December 31, December 31, December 31, 2018 Risk-free interest rate 0.26% - 0.37% 1.59 % 2.18 % Expected life of options 2.0 – 5.0 years 5.0 years 5.0 years Expected dividend yield Nil Nil Nil Volatility 79.44% - 87.79% 95.8 % 111.6 % At December 31, 2020, the Company had incentive stock options outstanding as follows: Expiry Date Options Outstanding Options Exercisable Exercise Price Weighted Average ($) (years) July 13, 2021 325,147 316,066 4.32 0.53 March 17, 2022 13,063 12,451 6.96 1.21 May 18, 2022 5,750 5,301 7.84 1.38 July 31, 2022 171,114 103,381 4.00 1.58 September 14, 2022 74,156 64,216 5.52 1.70 November 19, 2022 12,500 521 6.00 1.88 June 6, 2023 14,063 8,789 7.36 2.43 September 4, 2023 12,813 6,204 4.00 2.68 April 2, 2024 107,500 52,500 3.36 3.26 June 27, 2024 6,250 4,688 3.36 3.49 July 24, 2024 148,344 15,453 4.00 3.57 September 27, 2024 312,500 98,828 6.00 3.74 October 22, 2024 12,500 5,078 5.28 3.81 July 24, 2025 113,125 24,076 4.00 4.57 August 10, 2025 12,500 2,083 4.00 4.61 November 19, 2024 12,500 260 6.00 3.89 1,353,825 719,895 4.70 2.53 d) Share purchase warrants A continuity schedule of outstanding share purchase warrants is as follows: Number Outstanding Weighted Average Exercise Price ($) Balance – December 31, 2017 1,711,690 4.80 Exercised (153,750 ) 2.56 Expired (517,000 ) 6.40 Issued 427,598 6.24 Balance – December 31, 2018 1,468,538 4.96 Exercised (154,990 ) 2.72 Expired (347,732 ) 3.20 Issued 2,349,365 5.12 Balance – December 31, 2019 3,315,181 5.28 Exercised (1,056,143 ) 2.40 Expired (438,948 ) 4.32 Issued 872,532 6.13 Balance – December 31, 2020 2,692,622 5.88 During the year ended December 31, 2020, the Company: i) On February 17, 2020, the Company, completed a unit private placement which included 75,000 share purchase warrants exercisable at $6.40 per share for a period of two years. The share purchase warrants were determined to have a fair value of $Nil using the residual value method. ii) On July 17, 2020, the Company, completed a unit private placement which included 172,532 share purchase warrants exercisable at $4.00 per share for a period of two years. The share purchase warrants were determined to have a fair value of $55,210 using the residual value method. ii) On November 17, 2020, the Company, completed a unit private placement which included. 625,000 share purchase warrants exercisable at $4.00 per share for a period of two years. During the year ended December 31, 2019, the Company: i) On February 14, 2019, the Company completed a unit private placement which included 624,228 share purchase warrants exercisable at $4.80 per share for a period of two years. The share purchase warrants were determined to have a fair value of $199,753 using the residual value method. ii) On February 14, 2019, the Company completed a unit private placement which included 43,696 broker warrants exercisable at $2.88 per share for a period of two years. The share purchase warrants were determined to have a fair value of $61,843 using the Black Scholes option pricing model. iii) On July 26, 2019, the Company completed a unit private placement which included 1,094,844 share purchase warrants exercisable at $5.60 per share for a period of two years. The share purchase warrants were determined to have a fair value of $Nil using the residual method. iv) On July 26, 2019, the Company issued 14,088 agent warrants exercisable to purchase additional shares at a price of $5.60 per share for a period of 24 months from closing. The agent warrants were determined to have a fair value of $20,985. v) On August 9, 2019, the Company completed a unit private placement which included 284,093 share purchase warrants exercisable at $5.60 per share for a period of two years. The share purchase warrants were determined to have a fair value of $Nil using the residual method. vi) The Company issued 288,416 warrants at a value of $159,778 for the acquisition of Newco shares (Note 7). During the year ended December 31, 2018, the Company: i) On March 29, 2018 and April 12, 2018, completed a unit private placement which included 383,120 share purchase warrants exercisable at $6.40 per share for a period of two years. The share purchase warrants were determined to have a fair value of $140,531 using the residual value method. ii) On March 29, 2018 and April 12, 2018, completed a unit private placement which included 44,463 brokers’ warrants exercisable at $4.80 per share for a period of two years. The broker warrants were determined to have a fair value of $116,226 using the Black Scholes option pricing model. The Company used the following assumptions in calculating the fair value of the warrants for the period ended: December 31, December 31, Risk-free interest rate 1.77 % 1.85 % Expected life of options 2.0 years 2.0 years Expected dividend yield Nil Nil Volatility 107.14 % 86.44 % Weighted average fair value per warrant $ 0.64 $ 2.56 At December 31, 2020, the Company had share purchase warrants outstanding as follows: Expiry Date Warrants Outstanding Exercise Price Weighted Average Remaining Life ($) (years) February 13, 2021 75,000 6.40 0.13 * February 14, 2021 247,133 4.80 0.13 * February 14, 2021 6,883 2.88 0.13 * July 26, 2021 952,117 5.60 0.57 July 26, 2021 9,866 5.60 0.57 August 9, 2021 247,841 5.60 0.63 March 17, 2022 356,250 6.40 1.21 July 17, 2022 172,532 6.40 1.54 November 17, 2022 625,000 6.40 1.88 2,692,622 5.88 0.97 * See Note 19 On September 30, 2016, the Company issued 625,250 performance warrants with a fair value of $1,725,496. These performance warrants vested during the year ended December 31, 2019. At December 31, 2020, the Company had performance warrants outstanding as follows: Expiry Date Performance Warrants Outstanding Performance Warrants Exercisable Exercise Price Remaining Life ($) (years) June 30, 2021 625,250 625,250 4.00 0.50 |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure of transactions between related parties [text block] [Abstract] | |
RELATED PARTY TRANSACTIONS | 12. RELATED PARTY TRANSACTIONS The following summarizes the Company’s related party transactions, not disclosed elsewhere in these consolidated financial statements, during the year ended December 31, 2020 and 2019. Key management personnel includes the Chief Executive Officer (“CEO”), Chief Financial Officer (“CFO”), directors and officers and companies controlled or significantly influenced by them. Key Management Personnel 2020 2019 2018 ($) ($) ($) Short-term employee benefits paid or accrued to the CEO of the Company, including share-based compensation vested for incentive stock options and performance warrants. 375,858 382,002 434,543 Short-term employee benefits paid or accrued to the CFO of the Company, including share-based compensation vested for incentive stock options 366,818 262,432 150,706 Short-term employee benefits paid or accrued to a member of the advisory board of the Company, including share-based compensation vested for incentive stock options and performance warrants. 290,314 62,209 297,445 Short-term employee benefits paid or accrued to the Chief Technical Officer of the Company, including share-based compensation vested for incentive stock options and performance warrants. 403,626 297,140 238,456 Short-term employee benefits paid or accrued to certain directors and officers of the Company including share-based compensation vested for incentive stock options and performance warrants. 440,000 442,757 101,456 Total 1,876,616 1,446,540 1,222,606 Other Related Party Payments Lease payments of $84,000 (2019 - $84,000; 2018 - $76,000) were paid or accrued to a corporation that shares management in common with the Company. Amounts Outstanding a) At December 31, 2020, a total of $757,265 (December 31, 2019 - $492,181) was included in accounts payable and accrued liabilities owing to officers, directors, or companies controlled by them. These amounts are unsecured and non-interest bearing. b) At December 31, 2020 a total of $6,220,254 (December 31, 2019 - $5,470,000) of long term notes was payable to a director, a member of the advisory board and the CEO of the Company (Note 10). |
Financial Instruments and Risk
Financial Instruments and Risk Management | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure of financial risk management [text block] [Abstract] | |
FINANCIAL INSTRUMENTS AND RISK MANAGEMENT | 13. FINANCIAL INSTRUMENTS AND RISK MANAGEMENT Financial risk management 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. The Board of Directors has overall responsibility for the establishment and oversight of the Company’s risk management framework. The Company’s financial instruments consist of cash, receivables, restricted deposit, accounts payable and accrued liabilities and notes payable. The fair value of cash, receivables, accounts payable and accrued liabilities approximate their book values because of the short-term nature of these instruments. The fair value of notes payable approximates its book value as it was discounted using a market rate of interest. Credit risk Credit risk is the risk of financial loss to the Company if a counterparty to a financial instrument fails to meet its payment obligations. The Company has no material counterparties to its financial instruments with the exception of the financial institutions which hold its cash. The Company manages its credit risk by ensuring that its cash is placed with a major financial institution with strong investment grade ratings by a primary ratings agency. The Company’s receivables consist of goods and services tax due from the government. Financial instrument risk exposure The Company is exposed in varying degrees to a variety of financial instrument related risks. The Board approves and monitors the risk management processes. Liquidity risk The Company’s cash is invested in business accounts which are available on demand, The Company has raised additional capital subsequent to December 31, 2020 (Note 19). Accordingly, the Company’ cash position is not sufficient to meet all financial liabilities currently outstanding and expected to be incurred over the next twelve months. Interest rate risk The Company’s bank account earns interest income at variable rates and the notes payable bear interest at the prime lending rate. A 1% change in interest rates would have no significant impact on profit or loss for the year ended December 31, 2020. Foreign exchange risk Foreign currency exchange rate risk is the risk that the fair value of financial instruments or future cash flows will fluctuate because of changes in foreign exchange rates. The Company operates in Canada and the United States. The Company was exposed to the following foreign currency risk as of December 31, 2020, December 31, 2019, and December 31, 2018: December 31, 2020 December 31, 2019 December 31, 2018 (US$) (US$) (US$) Cash 86,800 72,097 25,689 Lease obligations (741,868 ) (768,563 ) - Accounts payable and accrued liabilities (1,092,402 ) (445,660 ) (543,790 ) (1,747,470 ) (1,142,126 ) (518,101 ) As of December 31, 2020, with other variables unchanged, a +/- 10% change in the United States dollar to Canadian dollar exchange rate would impact the Company’s profit or loss by $220,000 (December 31, 2019 - $148,000; December 31, 2018 - $71,000). |
Management of Capital
Management of Capital | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure of how entity manages liquidity risk [text block] [Abstract] | |
MANAGEMENT OF CAPITAL | 14. MANAGEMENT OF CAPITAL The Company manages its capital structure and makes adjustments to it, based on the funds available to the Company. Capital consists of items within equity (deficiency). The Board of Directors does not establish quantitative return on capital criteria for management, but rather relies on the expertise of the Company's management to sustain future development of the business. The Company is not subject to any externally imposed capital requirements. The Company remains dependent on external financing to fund its activities. In order to sustain its operations, the Company will spend its existing cash on hand and raise additional amounts as needed until the business generates sufficient revenues to be self-sustaining. Management reviews its capital management approach on an ongoing basis and believes that this approach, given the relative size of the Company, is reasonable. In order to maximize ongoing corporate development efforts, the Company does not pay out dividends. The Company’s investment policy is to keep its cash treasury invested in certificates of deposit with major financial institutions. There have been no changes to the Company’s approach to capital management during the year ended December 31, 2020. |
Geographical Segmented Informat
Geographical Segmented Information | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure of geographical areas [text block] [Abstract] | |
GEOGRAPHICAL SEGMENTED INFORMATION | 15. GEOGRAPHICAL SEGMENTED INFORMATION The Company is engaged in one business activity, being the development of a business-to-business software platform that allows video game publishers and developers to offer prize-based matches of their games to their players. Revenue earned during the year ended December 31, 2020 is from one customer based in the United States and receivables of $484,790 are due from that customer. Details of identifiable assets by geographic segments are as follows: Restricted deposits Deposits Property and equipment Intangible assets December 31, 2020 Canada $ 11,497 $ - $ 44,316 $ - USA - 127,812 581,622 2,256,903 $ 11,497 $ 127,812 $ 625,938 $ 2,256,903 December 31, 2019 Canada $ 11,500 $ - $ 119,797 $ - USA - 129,897 829,201 2,780,347 $ 11,500 $ 129,897 $ 948,998 $ 2,780,347 |
Supplemental Cash Flow Informat
Supplemental Cash Flow Information | 12 Months Ended |
Dec. 31, 2020 | |
Supplemental Cash Flow Information [Abstract] | |
SUPPLEMENTAL CASH FLOW INFORMATION | 16. SUPPLEMENTAL CASH FLOW INFORMATION 2020 2019 2018 ($) ($) ($) Non-cash investing and financing activities: Contribution benefit on low interest rate notes (Note 9) 228,497 182,299 500,921 Shares issued to acquire Newco shares (Note 6) - 1,892,012 - Deferred financing cost included in accrued expenses 423,392 - - Residual value of units 55,210 - 78,957 Fair value of broker warrants - - 116,226 Interest paid during the year - 56,144 - Income taxes paid during the year - - - |
Lease Obligations and Commitmen
Lease Obligations and Commitments | 12 Months Ended |
Dec. 31, 2020 | |
Lease Obligations And Commitments [Abstract] | |
LEASE OBLIGATIONS AND COMMITMENTS | 17. LEASE OBLIGATIONS AND COMMITMENTS Lease Liabilities $ Lease liabilities recognized as of January 1, 2019 1,469,664 Lease payments made (359,119 ) Interest expense on lease liabilities 104,384 Foreign exchange adjustment (92,529 ) Lease liabilities recognized as of January 1, 2020 1,122,400 Lease payments made (409,819 ) Interest expense on lease liabilities 80,637 Foreign exchange adjustment 39,767 832,985 Less: current portion (271,669 ) At December 31, 2020 561,316 On August 1, 2015, the Company entered into a cost sharing arrangement agreement for the provision of office space and various administrative services. In May of 2018, the Company extended the cost sharing arrangement to June of 2021 at a monthly fee of $7,000 plus GST per month. Year Amount ($) 2022 49,000 On September 6, 2017, the Company entered into a rental agreement for office space in Los Angeles, USA. Under the terms of the agreement the Company will pay monthly rent starting at US$17,324 commencing on October 1, 2017 until September 30, 2022. Year Amount US($) 2021 251,384 2022 260,185 2023 131,576 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2020 | |
Income Taxes [Abstract] | |
INCOME TAXES | 18. INCOME TAXES a) Provision for Income Taxes A reconciliation of income taxes at statutory rates with the reported taxes is as follows: 2020 2019 2018 ($) ($) ($) Loss for the year (9,271,160 ) (9,627,605 ) (9,373,171 ) Expected income tax (recovery) (2,503,000 ) (2,599,000 ) (2,531,000 ) Change in statutory, foreign tax, foreign exchange rates and other 369,000 528,000 (96,000 ) Permanent differences 541,000 345,000 180,000 Share issue costs - (154,000 ) (121,000 ) Adjustment to prior years provision versus statutory tax returns (47,000 ) 4,157,000 (1,026,000 ) Change in unrecognized deductible temporary differences 1,640,000 (2,277,000 ) 3,594,000 Income tax expense - - - b) Deferred Income Taxes The significant components of the Company’s deferred tax assets that have not been included on the consolidated statement of financial position are as follows: 2020 2019 2018 ($) ($) ($) Non-capital losses carry-forward 10,519,000 9,054,000 17,116,000 Exploration and evaluation assets 1,910,000 1,919,000 1,929,000 Share issuance costs 141,000 200,000 109,000 Debt with accretion (91,000 ) (127,000 ) (139,000 ) Intangible assets 1,736,000 1,605,000 623,000 Allowable capital losses 4,819,000 4,749,000 82,000 Property and equipment 83,000 77,000 34,000 19,117,000 17,477,000 19,754,000 Unrecognized deferred tax assets (19,117,000 ) (17,477,000 ) (19,754,000 ) The significant components of the Company’s temporary differences, unused tax credits and unused tax losses that have not been included on the consolidated statement of financial position are as follows: Temporary Differences 2020 Expiry Date Range 2019 Expiry Date Range ($) ($) Non-capital losses available for future periods - US 19,962,000 2036 to indefinite 15,498,000 2036 to indefinite Non-capital losses available for future periods - Canada 23,094,000 2026 to 2040 21,005,000 2026 to 2039 Allowable capital losses 17,847,000 No expiry date 17,588,000 No expiry date Property and equipment 354,000 No expiry date 327,000 No expiry date Intangible asset 8,267,000 No expiry date 7,642,000 No expiry date Exploration and evaluation assets 7,075,000 No expiry date 7,108,000 No expiry date Share issuance costs 521,000 2040 to 2044 740,000 2040 to 2043 Tax attributes are subject to review, and potential adjustment, by tax authorities. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure of events after reporting period [text block] [Abstract] | |
SUBSEQUENT EVENTS | 19. SUBSEQUENT EVENTS i) On January 21, 2021, the Company completed a public offering and issued 1,472,000 units at a price of USD $7.50 USD per unit per unit for total proceeds of USD $11,040,000. Each unit consisted of one common share, one Unit A warrant and one Unit B warrant, each to purchase one common share at USD $7.50 per share until January 21, 2023. In connection with the offering, the Company incurred $517,360 in deferred financing costs as of December 31, 2020. ii) Subsequent to December 31, 2020, the Company issued 215,341 units to a director in exchange for the forgiveness of $1,889,865 of notes and accrued interest of $184,441. iii) Subsequent to December 31, 2020, the Company’s warrant and option holders had exercised 899,056 warrants at an average exercise price of $3.32 per share for total proceeds of $2,787,138 iv) Subsequent to December 31, 2020, the Company repaid $477,619 of notes payable outstanding. |
Accounting Policies, by Policy
Accounting Policies, by Policy (Policies) | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Basic and diluted loss per share | Basic and diluted loss per share Basic earnings (loss) per share is computed by dividing net earnings (loss) available to common shareholders by the weighted average number of shares outstanding during the reporting periods. Diluted earnings (loss) per share is computed similar to basic earnings (loss) per share except that the weighted average shares outstanding are increased to include additional shares for the assumed exercise of stock options and warrants, if dilutive. The number of additional shares is calculated by assuming that outstanding stock options and warrants were exercised and that the proceeds from such exercises were used to acquire common stock at the average market price during the reporting periods. Potentially dilutive options and warrants excluded from diluted loss per share totaled 4,671,713 (2019 – 3,656,318) as they were anti-dilutive. |
Property and Equipment | Property and Equipment Property and equipment is recorded at cost less accumulated amortization and any impairments. Amortization is calculated based on the estimated residual value and estimated economic life of the specific assets using the straight-line method over the period indicated below: Asset Rate Computers Straight line, 3 years Right of use assets Shorter of useful life or lease term |
Financial instruments | Financial instruments Classification The Company classifies its financial instruments in the following categories: at fair value through profit and loss (“FVTPL”), at fair value through other comprehensive income (loss) (“FVTOCI”), or at amortized cost. The Company determines the classification of financial assets at initial recognition. The classification of debt instruments is driven by the Company’s business model for managing the financial assets and their contractual cash flow characteristics. Equity instruments that are held for trading are classified as FVTPL. For other equity instruments, on the day of acquisition the Company can make an irrevocable election (on an instrument-by-instrument basis) to designate them as FVTOCI. Financial liabilities are measured at amortized cost, unless they are required to be measured at FVTPL (such as instruments held for trading or derivatives) or the Company has opted to measure them at FVTPL. The following table shows the classification of financial instruments: Financial assets/liabilities Classification Cash FVTPL Receivables Amortized cost Restricted deposit Amortized cost Deposit Amortized cost Accounts payable and accrued liabilities Amortized cost Notes payable Amortized cost Measurement Financial assets and liabilities at amortized cost Financial assets and liabilities at amortized cost are initially recognized at fair value plus or minus transaction costs, respectively, and subsequently carried at amortized cost less any impairment. Financial assets and liabilities at FVTPL Financial assets and liabilities carried at FVTPL are initially recorded at fair value and transaction costs are expensed in profit or loss. Realized and unrealized gains and losses arising from changes in the fair value of the financial assets and liabilities held at FVTPL are included in profit or loss in the period in which they arise. Impairment of financial assets at amortized cost An ‘expected credit loss’ impairment model applies which requires a loss allowance to be recognized based on expected credit losses. The estimated present value of future cash flows associated with the asset is determined and an impairment loss is recognized for the difference between this amount and the carrying amount as follows: the carrying amount of the asset is reduced to estimated present value of the future cash flows associated with the asset, discounted at the financial asset’s original effective interest rate, either directly or through the use of an allowance account and the resulting loss is recognized in profit or loss for the period. In a subsequent period, if the amount of the impairment loss related to financial assets measured at amortized cost decreases, the previously recognized impairment loss is reversed through profit or loss to the extent that the carrying amount of the investment at the date the impairment is reversed does not exceed what the amortized cost would have been had the impairment not been recognized. Derecognition Financial assets The Company derecognizes financial assets only when the contractual rights to cash flows from the financial assets expire, or when it transfers the financial assets and substantially all of the associated risks and rewards of ownership to another entity. Gains and losses on derecognition are generally recognized in profit or loss. As of December 31, 2020, the Company does not have any derivative financial assets and liabilities. |
Intangible assets excluding goodwill | Intangible assets excluding goodwill Intangible assets acquired separately are carried at cost at the time of initial recognition. Intangible assets acquired in a business combination and recognized separately from goodwill are initially recognized at their fair value at the acquisition date. Expenditure on research activities is recognized as an expense in the period in which it is incurred. Intangibles with a finite useful life are amortized and those with an indefinite useful life are not amortized. The useful life is the best estimate of the period over which the asset is expected to contribute directly or indirectly to the future cash flows of the Company. The useful life is based on the duration of the expected use of the asset by the Company and the legal, regulatory or contractual provisions that constrain the useful life and future cash flows of the asset, including regulatory acceptance and approval, obsolescence, demand, competition and other economic factors. If an income approach is used to measure the fair value of an intangible asset, the Company considers the period of expected cash flows used to measure the fair value of the intangible asset, adjusted as appropriate for Company-specific factors discussed above, to determine the useful life for amortization purposes. If no regulatory, contractual, competitive, economic or other factors limit the useful life of the intangible to the Company, the useful life is considered indefinite. Intangibles with a finite useful life are amortized on the straight-line method unless the pattern in which the economic benefits of the intangible asset are consumed or used up are reliably determinable. The Company evaluates the remaining useful life of intangible assets each reporting period to determine whether any revision to the remaining useful life is required. If the remaining useful life is changed, the remaining carrying amount of the intangible asset will be amortized prospectively over the revised remaining useful life. The Company’s intangible asset is amortized on a straight-line basis over 3 years. In the year development costs are incurred, amortization is based on a half year. |
Deferred Financing Costs | Deferred Financing Costs Deferred financing costs consist primarily of direct incremental costs related to the Company’s public offering of its common stock, which was completed in January 2021 (See Note 19). Upon completion of the Company’s public offering any deferred cost will be offset against the proceeds of the offering. The Company incurred $517,360 of deferred financing cost during the year ended December 31, 2020. |
Impairment of intangible assets excluding goodwill | Impairment of intangible assets excluding goodwill An internally-generated intangible asset arising from development (or from the development phase of an internal project) is recognized if, and only if, all of the following have been demonstrated: (a) the technical feasibility of completing the intangible asset so that it will be available for use or sale; (b) the intention to complete the intangible asset and use or sell it; (c) the ability to use or sell the intangible asset; (d) how the intangible asset will generate probable future economic benefits; (e) the availability of adequate technical, financial and other resources to complete the development and to use or sell the intangible asset; and (f) the ability to measure reliably the expenditure attributable to the intangible asset during its development. The amount initially recognized for internally-generated intangible assets is the sum of the costs incurred from the date when the intangible assets first meet the recognition criteria listed above. If no future economic benefit is expected before the end of the life of assets, the residual book value is expensed. Subsequent to initial recognition, internally-generated intangible assets are reported at cost. Where no internally-generated intangible asset can be recognized, development costs are recognized as an expense in the period in which it is incurred. At the end of each reporting period, the Company reviews the carrying amounts of its intangible assets to determine whether there is any indication that those assets have suffered impairment losses. If any such indication exists, the recoverable amount of the cash-generating unit (“CGU”) to which the asset belongs is estimated in order to determine the extent of the impairment losses (if any). Where a reasonable and consistent basis of allocation can be identified, corporate assets (assets other than goodwill that contribute to the future cash flows of both the CGU under review and other CGUs) are also allocated to individual CGUs, or otherwise they are allocated to the smallest group of CGUs for which a reasonable and consistent allocation basis can be identified. Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted. If the recoverable amount of an asset (or CGU) is estimated to be less than its carrying amount, the carrying amount of the asset (or CGU) is reduced to its recoverable amount. Where impairment losses subsequently reverse, the carrying amount of the asset (or CGU) is increased to the revised estimate of its recoverable amount, such that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment losses been recognized for the asset (or CGU) in prior years. A reversal of impairment losses is recognized immediately in profit or loss. |
Income taxes | Income taxes Tax expense recognized in profit or loss comprises the sum of current tax and deferred tax not recognized in other comprehensive income or directly in equity. |
Current Income Tax | Current Income Tax Current income tax assets and/or liabilities comprise those claims from, or obligations to, fiscal authorities relating to the current or prior reporting periods that are unpaid at the reporting date. Current tax is payable on taxable profit, which differs from profit or loss in the financial statements. Calculation of current tax is based on tax rates and tax laws that have been enacted or substantively enacted by the end of the reporting period. |
Deferred income tax | Deferred income tax Deferred income taxes are calculated based on temporary differences between the carrying amounts of assets and liabilities and their tax bases. Deferred tax assets and liabilities are calculated, without discounting, at tax rates that are expected to apply to their respective period of realization, provided they are enacted or substantively enacted by the end of the reporting period. Deferred tax assets are recognized to the extent that it is probable that they will be able to be utilized against future taxable income. Deferred tax assets and liabilities are offset only when the Company has a right and intention to offset current tax assets and liabilities from the same taxation authority. Changes in deferred tax assets or liabilities are recognized as a component of tax income or expense in profit or loss, except where they relate to items that are recognized in other comprehensive income or directly in equity, in which case the related deferred tax is also recognized in other comprehensive income or equity, respectively. |
Leases | Leases Leases are recognized as a right-of-use asset and a corresponding liability at the date at which the leased asset is available for use by the Company. Assets and liabilities arising from a lease are initially measured on a present value basis. Right-of-use assets are measured at cost comprising the following: - the amount of the initial measurement of lease liability; - any lease payments made at or before the commencement date less any lease incentives received; - any initial direct costs; and - restoration costs. The Company assesses whether a contract is or contains a lease, at inception of a contract. The Company recognizes a right-of-use asset and a corresponding lease liability with respect to all lease agreements in which it is the lessee. The lease liability is initially measured at the present value of the lease payments that are not paid at the commencement date, discounted by using the rate implicit in the lease. If this rate cannot be readily determined, the Company uses its incremental borrowing rate. The lease liability is subsequently measured by increasing its carrying amount to reflect interest on the lease liability (using the effective interest method) and by reducing the carrying amount to reflect lease payments made. The right-of-use asset is depreciated over the shorter of the lease term and the useful life of the underlying asset. The Company applies IAS 36, Impairment of Assets, to determine whether the asset is impaired and account for any identified impairment loss. As a practical expedient, IFRS 16 permits a lease not to separate non-lease components, and instead account for any lease and associated non-lease components as a single arrangement. The Company has not used this practical expedient, and accordingly allocates the consideration in the contract to lease and non-lease components based on the stand-alone price of the lease component and aggregate stand-alone price of the non-lease components. Variable rents that do not depend on an index or rate are not included in the measurement of the lease liability and the right-of-use asset. The related payments are recognized as an expense in the period in which the event or condition that triggers those payments occurs and are presented as such in profit or loss. |
Provisions | Provisions A provision is recognized if, as a result of a past event, the Company has a present legal or constructive obligation that can be estimated reliably and it is probable that an outflow of economic benefits will be required to settle the obligation. Provisions are determined by discounting the expected future cash flows at a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the liability. |
Government grant | Government grant Government grant is recognized when there is reasonable assurance that the Company will comply with any conditions attached to the grant and the grant will be received. Government grant is recognized in profit or loss to offset the corresponding expenses on a systematic basis over the periods in which the Company recognizes expenses for the related costs for which the grants are intended to compensate, which in the case of grants related to assets requires setting up the grant as deferred income or deducting it from the carrying amount of the asset. |
Non-controlling interest | Non-controlling interest Non-controlling interest in the Company’s less than wholly owned subsidiary is classified as a separate component of equity. On initial recognition, non-controlling interest is measured at the fair value of the non-controlling entity’s contribution into the related subsidiary. Subsequent to the original transaction date, adjustments are made to the carrying amount of non-controlling interest for the non-controlling interest’s share of changes to the subsidiary’s equity. Changes in the Company’s ownership interest in a subsidiary that do not result in a loss of control are recorded as equity transactions. The carrying amount of non-controlling interest is adjusted to reflect the change in the non-controlling interest’s relative interest in the subsidiary, and the difference between the adjustment to the carrying amount of non-controlling interests and the Company’s share of proceeds received and/or consideration paid is recognized directly in equity and attributed to owners of the Company. |
Valuation of equity units issued in private placements | Valuation of equity units issued in private placements The Company has adopted a residual value method with respect to the measurement of shares and warrants issued as private placement units. The residual value method first allocates value to the most easily measurable component based on fair value and then the residual value, if any, to the less easily measurable component. The fair value of the common shares issued in private placements is determined to be the more easily measurable component and are valued at their fair value. The balance, if any, is allocated to the attached warrants. Any fair value attributed to the warrants is recorded as warrant reserve. If the warrants are exercised, the related amount is reclassified as share capital. If the warrants expire unexercised, the related amount remains in the warrant reserve. |
Share-based Compensation | Share-based Compensation The Company grants stock options to acquire common shares of the Company to directors, officers, employees and consultants. An individual is classified as an employee when the individual is an employee for legal or tax purposes, or provides services similar to those performed by an employee. The fair value of stock options is measured on the date of grant, using the Black-Scholes option pricing model, and is recognized over the vesting period. Consideration paid for the shares on the exercise of stock options is credited to capital stock. In situations where equity instruments are issued to non-employees and some or all of the goods or services received by the entity as consideration cannot be specifically identified, they are measured at fair value of the share-based payment. Otherwise, share-based payments are measured at the fair value of goods or services received. |
Revenue recognition | Revenue recognition In general, the Company recognizes revenue when the amount of revenue can be reliably measured, it is probable that future economic benefits will flow to the Company, where there is evidence of an arrangement, when the selling price is fixed or determinable, and when specific criteria have been met or there are no significant remaining performance obligations for each of the Company’s activities as described below. Foreseeable losses, if any, are recognized in the year or period in which the loss is determined. The Company earns revenue in two primary ways: 1) development and maintenance of custom-built software or other professional services, or 2) the sale of advertising. The Company recognizes revenues received from the development and maintenance of custom-built software and other professional services provided upon the satisfaction of its performance obligation in an amount that reflects the consideration to which the Company expects to be entitled in exchange for those services. Performance obligations can be satisfied either at a single point in time or over time. For those performance obligations that are satisfied at a single point in time, the revenue is recognized at that time. For each performance obligation satisfied over time, the Company recognizes revenue by measuring the progress toward complete satisfaction of that performance obligation. For revenues received from the sales of advertising, the Company is deemed the agent in its revenue agreements. The Company does not own or obtain control of the digital advertising inventory. The Company recognizes revenues upon the achievement of agreed-upon performance criteria for the advertising inventory, such as a number of views, or clicks. As the Company is acting as an agent in the transaction, the Company recognizes revenue from sales of advertising on a net basis, which excludes amounts payable to partners under the Company’s revenue sharing agreements. The Company’s contracts with customers may include promises to transfer multiple products and services. For these contracts, the Company accounts for individual performance obligations separately if they are capable of being distinct and distinct within the context of the contract. Determining whether products and services are considered distinct performance obligations may require significant judgment. Judgment is also required to determine the stand-alone selling price, for each distinct performance obligation. As the Company’s performance obligations are satisfied within 12 months, the Company has elected the practical expedients under IFRS 15, which allows the Company not to record any significant financing component as a result of financing any of its arrangements and not to capitalize cost incurred to obtain a contract. |
Deferred Revenue | Deferred Revenue Revenue recognition of sales is recorded on a monthly basis upon delivery or as the services are provided. Cash received in advance for services are recorded as deferred revenue based on the proportion of time remaining under the service arrangement as of the reporting date. |
Foreign Exchange | Foreign Exchange The functional currency is the currency of the primary economic environment in which the entity operates and has been determined for each entity within the Company. The functional currency for the Company and its subsidiaries is the Canadian dollar. The functional currency determinations were conducted through an analysis of the consideration factors identified in IAS 21, The Effects of Changes in Foreign Exchange Rates. Transactions in currencies other than the Canadian dollar are recorded at exchange rates prevailing on the dates of the transactions. At the end of each reporting period, the monetary assets and liabilities of the Company and its subsidiaries that are denominated in foreign currencies are translated at the rate of exchange at the date of the statement of financial position while non-monetary assets and liabilities are translated at historical rates. Revenues and expenses are translated at the exchange rates approximating those in effect on the date of the transactions. Exchange gains and losses arising on translation are included in profit or loss. |
Comprehensive Income (Loss) | Comprehensive Income (Loss) Comprehensive income (loss) consists of net income (loss) and other comprehensive income (loss) and represents the change in equity (deficiency) which results from transactions and events from sources other than the Company’s shareholders. Net loss is the same as comprehensive loss for the years presented. |
Basis of Presentation (Tables)
Basis of Presentation (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure of basis of consolidation [text block] [Abstract] | |
Schedule of subsidiary | Name of Subsidiary Place of Incorporation Proportion of Ownership Interest Principal Activity Versus Systems (Holdco) Inc. United States of America 66.8 % Holding Company Versus Systems UK, Ltd United Kingdom 66.8 % Sales Company Versus LLC United States of America 66.8 % Technology Company |
Significant Accounting Polici_2
Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Schedule of estimated residual value and estimated economic life of the specific assets | Asset Rate Computers Straight line, 3 years Right of use assets Shorter of useful life or lease term |
Schedule of financial assets and liabilities | Financial assets/liabilities Classification Cash FVTPL Receivables Amortized cost Restricted deposit Amortized cost Deposit Amortized cost Accounts payable and accrued liabilities Amortized cost Notes payable Amortized cost |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Property And Equipment [Abstract] | |
Schedule of property and equipment | Computers Right of Use Total ($) ($) ($) Cost At December 31, 2017 76,256 - - Additions 38,483 - - At December 31, 2018 114,739 - 114,739 Additions 1,217,109 1,217,109 At December 31, 2019 114,739 1,217,109 1,331,848 Additions - - - At December 31, 2020 114,739 1,217,109 1,331,848 Accumulated amortization At December 31, 2017 25,987 - 25,987 Amortization for the year 29,642 - 29,642 At December 31, 2018 55,629 - 55,629 Amortization for the year 30,695 296,526 327,221 At December 31, 2019 86,324 296,526 382,850 Amortization for the year 24,062 298,998 323,060 At December 31, 2020 110,386 595,524 705,910 Carrying amounts At December 31, 2018 59,110 - 59,110 At December 31, 2019 28,415 920,583 948,998 At December 31, 2020 4,353 621,585 625,938 |
Non-Controlling Interest in V_2
Non-Controlling Interest in Versus LLC (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure of business combinations [text block] [Abstract] | |
Schedule of financial information before intragroup eliminations for non-wholly owned subsidiary | 2020 2019 2018 Non-controlling interest percentage 33.2% 33.2% 58.7% ($) ($) ($) Assets Current 1,012,081 103,398 72,222 Non-current 2,974,249 3,739,445 3,566,490 3,986,330 3,842,843 3,638,712 Liabilities Current 1,325,230 823,285 740,249 Non-current 22,510,724 17,851,531 11,059,323 23,835,954 18,674,816 11,799,572 Net liabilities (19,849,624 ) (14,831,973 ) (8,160,860 ) Non-controlling interest (7,547,035 ) (6,024,450 ) (5,893,609 ) Loss and comprehensive loss (4,586,099 ) (6,671,113 ) (7,766,709 ) Loss and comprehensive loss attributed to non-controlling interest (1,522,585 ) (2,758,484 ) (4,741,694 ) |
Intangible Assets (Tables)
Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure of detailed information about intangible assets [text block] [Abstract] | |
Schedule of intangible assets | Software ($) Cost At December 31, 2017 7,993,002 Additions 1,804,207 At December 31, 2018 9,797,209 Additions 1,939,858 At December 31, 2019 11,737,067 Additions 1,183,528 At December 31, 2020 12,920,595 Accumulated amortization At December 31, 2017 3,461,095 Amortization 2,965,035 At December 31, 2018 6,426,130 Amortization 2,530,590 At December 31, 2019 8,956,720 Amortization 1,706,972 At December 31, 2020 10,663,692 Carrying amounts At December 31, 2018 3,371,079 At December 31, 2019 2,780,347 At December 31, 2020 2,256,903 |
Accounts Payable and Accrued _2
Accounts Payable and Accrued Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Accounts Payable And Accrued Liabilitiestext Block [Abstract] | |
Schedule accounts payable and accrued liabilities | December 31, 2020 December 31, ($) ($) Accounts payable 716,177 446,988 Due to related parties 716,808 492,181 Accrued liabilities 461,840 36,236 1,894,825 975,405 |
Notes Payable (Tables)
Notes Payable (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure of trade and other payables [text block] [Abstract] | |
Schedule of notes to their present value | Amount ($) Balance at December 31, 2017 747,322 Proceeds 3,106,652 Contribution benefit (500,921) Finance expense 125,903 Balance at December 31, 2018 3,478,956 Proceeds 2,633,667 Repayments (1,258,194 ) Contribution benefit (297,110 ) Finance expense 257,448 Balance, December 31, 2019 4,814,767 Proceeds 1,261,254 Repayments (336,000 ) Contribution benefit (228,497 ) Finance expense 371,061 Balance, December 31, 2020 5,882,585 Current 2,975,747 Non-current 2,906,838 |
Share Capital and Reserves (Tab
Share Capital and Reserves (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure of share capital, reserves and other equity interest [text block] [Abstract] | |
Schedule of outstanding stock options | Number Weighted Average ($) Balance – December 31, 2017 531,559 4.96 Granted 72,284 5.92 Forfeited (54,319 ) 5.28 Balance – December 31, 2018 549,524 4.96 Granted 482,500 5.28 Exercised (3,125 ) 3.52 Forfeited (15,500 ) 6.72 Balance –December 31, 2019 1,013,399 5.12 Granted 470,083 4.11 Exercised (3,750 ) 3.49 Forfeited (125,907 ) 6.04 Balance – December 31, 2020 1,353,825 4.70 |
Schedule of fair value of stock options | December 31, December 31, December 31, 2018 Risk-free interest rate 0.26% - 0.37% 1.59 % 2.18 % Expected life of options 2.0 – 5.0 years 5.0 years 5.0 years Expected dividend yield Nil Nil Nil Volatility 79.44% - 87.79% 95.8 % 111.6 % |
Schedule of incentive stock options outstanding | Expiry Date Options Outstanding Options Exercisable Exercise Price Weighted Average ($) (years) July 13, 2021 325,147 316,066 4.32 0.53 March 17, 2022 13,063 12,451 6.96 1.21 May 18, 2022 5,750 5,301 7.84 1.38 July 31, 2022 171,114 103,381 4.00 1.58 September 14, 2022 74,156 64,216 5.52 1.70 November 19, 2022 12,500 521 6.00 1.88 June 6, 2023 14,063 8,789 7.36 2.43 September 4, 2023 12,813 6,204 4.00 2.68 April 2, 2024 107,500 52,500 3.36 3.26 June 27, 2024 6,250 4,688 3.36 3.49 July 24, 2024 148,344 15,453 4.00 3.57 September 27, 2024 312,500 98,828 6.00 3.74 October 22, 2024 12,500 5,078 5.28 3.81 July 24, 2025 113,125 24,076 4.00 4.57 August 10, 2025 12,500 2,083 4.00 4.61 November 19, 2024 12,500 260 6.00 3.89 1,353,825 719,895 4.70 2.53 |
Schedule of outstanding share purchase warrants | Number Outstanding Weighted Average Exercise Price ($) Balance – December 31, 2017 1,711,690 4.80 Exercised (153,750 ) 2.56 Expired (517,000 ) 6.40 Issued 427,598 6.24 Balance – December 31, 2018 1,468,538 4.96 Exercised (154,990 ) 2.72 Expired (347,732 ) 3.20 Issued 2,349,365 5.12 Balance – December 31, 2019 3,315,181 5.28 Exercised (1,056,143 ) 2.40 Expired (438,948 ) 4.32 Issued 872,532 6.13 Balance – December 31, 2020 2,692,622 5.88 |
Schedule of assumptions in calculating the fair value of the warrants | December 31, December 31, Risk-free interest rate 1.77 % 1.85 % Expected life of options 2.0 years 2.0 years Expected dividend yield Nil Nil Volatility 107.14 % 86.44 % Weighted average fair value per warrant $ 0.64 $ 2.56 |
Schedule of share purchase warrants outstanding | Expiry Date Warrants Outstanding Exercise Price Weighted Average Remaining Life ($) (years) February 13, 2021 75,000 6.40 0.13 * February 14, 2021 247,133 4.80 0.13 * February 14, 2021 6,883 2.88 0.13 * July 26, 2021 952,117 5.60 0.57 July 26, 2021 9,866 5.60 0.57 August 9, 2021 247,841 5.60 0.63 March 17, 2022 356,250 6.40 1.21 July 17, 2022 172,532 6.40 1.54 November 17, 2022 625,000 6.40 1.88 2,692,622 5.88 0.97 |
Schedule of performance warrants outstanding | Expiry Date Performance Warrants Outstanding Performance Warrants Exercisable Exercise Price Remaining Life ($) (years) June 30, 2021 625,250 625,250 4.00 0.50 |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure of transactions between related parties [text block] [Abstract] | |
Schedule of key management personnel | Key Management Personnel 2020 2019 2018 ($) ($) ($) Short-term employee benefits paid or accrued to the CEO of the Company, including share-based compensation vested for incentive stock options and performance warrants. 375,858 382,002 434,543 Short-term employee benefits paid or accrued to the CFO of the Company, including share-based compensation vested for incentive stock options 366,818 262,432 150,706 Short-term employee benefits paid or accrued to a member of the advisory board of the Company, including share-based compensation vested for incentive stock options and performance warrants. 290,314 62,209 297,445 Short-term employee benefits paid or accrued to the Chief Technical Officer of the Company, including share-based compensation vested for incentive stock options and performance warrants. 403,626 297,140 238,456 Short-term employee benefits paid or accrued to certain directors and officers of the Company including share-based compensation vested for incentive stock options and performance warrants. 440,000 442,757 101,456 Total 1,876,616 1,446,540 1,222,606 |
Financial Instruments and Ris_2
Financial Instruments and Risk Management (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure of financial risk management [text block] [Abstract] | |
Schedule of foreign currency risk | December 31, 2020 December 31, 2019 December 31, 2018 (US$) (US$) (US$) Cash 86,800 72,097 25,689 Lease obligations (741,868 ) (768,563 ) - Accounts payable and accrued liabilities (1,092,402 ) (445,660 ) (543,790 ) (1,747,470 ) (1,142,126 ) (518,101 ) |
Geographical Segmented Inform_2
Geographical Segmented Information (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure of geographical areas [text block] [Abstract] | |
Schedule of identifiable assets by geographic segments | Restricted deposits Deposits Property and equipment Intangible assets December 31, 2020 Canada $ 11,497 $ - $ 44,316 $ - USA - 127,812 581,622 2,256,903 $ 11,497 $ 127,812 $ 625,938 $ 2,256,903 December 31, 2019 Canada $ 11,500 $ - $ 119,797 $ - USA - 129,897 829,201 2,780,347 $ 11,500 $ 129,897 $ 948,998 $ 2,780,347 |
Supplemental Cash Flow Inform_2
Supplemental Cash Flow Information (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Supplemental Cash Flow Information [Abstract] | |
Schedule of supplemental cash flow Information | 2020 2019 2018 ($) ($) ($) Non-cash investing and financing activities: Contribution benefit on low interest rate notes (Note 9) 228,497 182,299 500,921 Shares issued to acquire Newco shares (Note 6) - 1,892,012 - Deferred financing cost included in accrued expenses 423,392 - - Residual value of units 55,210 - 78,957 Fair value of broker warrants - - 116,226 Interest paid during the year - 56,144 - Income taxes paid during the year - - - |
Lease Obligations and Commitm_2
Lease Obligations and Commitments (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Lease Obligations And Commitments [Abstract] | |
Schedule of lease liabilities | Lease Liabilities $ Lease liabilities recognized as of January 1, 2019 1,469,664 Lease payments made (359,119 ) Interest expense on lease liabilities 104,384 Foreign exchange adjustment (92,529 ) Lease liabilities recognized as of January 1, 2020 1,122,400 Lease payments made (409,819 ) Interest expense on lease liabilities 80,637 Foreign exchange adjustment 39,767 832,985 Less: current portion (271,669 ) At December 31, 2020 561,316 |
Schedule of maturity lease liabilities | Year Amount ($) 2022 49,000 |
Schedule of rental agreement for office space | Year Amount US($) 2021 251,384 2022 260,185 2023 131,576 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure of income tax [text block] [Abstract] | |
Schedule of income taxes at statutory rates | 2020 2019 2018 ($) ($) ($) Loss for the year (9,271,160 ) (9,627,605 ) (9,373,171 ) Expected income tax (recovery) (2,503,000 ) (2,599,000 ) (2,531,000 ) Change in statutory, foreign tax, foreign exchange rates and other 369,000 528,000 (96,000 ) Permanent differences 541,000 345,000 180,000 Share issue costs - (154,000 ) (121,000 ) Adjustment to prior years provision versus statutory tax returns (47,000 ) 4,157,000 (1,026,000 ) Change in unrecognized deductible temporary differences 1,640,000 (2,277,000 ) 3,594,000 Income tax expense - - - |
Schedule of deferred income taxes | 2020 2019 2018 ($) ($) ($) Non-capital losses carry-forward 10,519,000 9,054,000 17,116,000 Exploration and evaluation assets 1,910,000 1,919,000 1,929,000 Share issuance costs 141,000 200,000 109,000 Debt with accretion (91,000 ) (127,000 ) (139,000 ) Intangible assets 1,736,000 1,605,000 623,000 Allowable capital losses 4,819,000 4,749,000 82,000 Property and equipment 83,000 77,000 34,000 19,117,000 17,477,000 19,754,000 Unrecognized deferred tax assets (19,117,000 ) (17,477,000 ) (19,754,000 ) |
Schedule of deferred income taxes unused tax credits and unused tax losses | Temporary Differences 2020 Expiry Date Range 2019 Expiry Date Range ($) ($) Non-capital losses available for future periods - US 19,962,000 2036 to indefinite 15,498,000 2036 to indefinite Non-capital losses available for future periods - Canada 23,094,000 2026 to 2040 21,005,000 2026 to 2039 Allowable capital losses 17,847,000 No expiry date 17,588,000 No expiry date Property and equipment 354,000 No expiry date 327,000 No expiry date Intangible asset 8,267,000 No expiry date 7,642,000 No expiry date Exploration and evaluation assets 7,075,000 No expiry date 7,108,000 No expiry date Share issuance costs 521,000 2040 to 2044 740,000 2040 to 2043 |
Nature of Operations and Goin_2
Nature of Operations and Going Concern (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2020USD ($) | |
Initial Public Offering [Member] | |
Nature of Operations and Going Concern (Details) [Line Items] | |
Proceeds from public offering | $ 11 |
Basis of Presentation (Details)
Basis of Presentation (Details) - Schedule of subsidiary | 12 Months Ended |
Dec. 31, 2020 | |
Subsidiaries [member] | |
Basis of Presentation (Details) - Schedule of subsidiary [Line Items] | |
Name of Subsidiary | United States of America |
Place of Incorporation | 66.8% |
Proportion of Ownership Interest | Holding Company |
Subsidiaries 1 [Member] | |
Basis of Presentation (Details) - Schedule of subsidiary [Line Items] | |
Name of Subsidiary | United Kingdom |
Place of Incorporation | 66.8% |
Proportion of Ownership Interest | Sales Company |
Subsidiaries 2 [Member] | |
Basis of Presentation (Details) - Schedule of subsidiary [Line Items] | |
Name of Subsidiary | United States of America |
Place of Incorporation | 66.8% |
Proportion of Ownership Interest | Technology Company |
Significant Accounting Polici_3
Significant Accounting Policies (Details) | 12 Months Ended | ||
Dec. 31, 2020CAD ($)$ / shares | Dec. 31, 2019$ / shares | Dec. 31, 2020USD ($) | |
Accounting Policies [Abstract] | |||
Diluted loss per share | $ 4,671,713 | $ 3,656,318 | |
Intangible assets useful life | 3 years | ||
Offering cost (in Dollars) | $ 517,360 | $ 517,360 |
Significant Accounting Polici_4
Significant Accounting Policies (Details) - Schedule of estimated residual value and estimated economic life of the specific assets | 12 Months Ended |
Dec. 31, 2020 | |
Computers [Member] | |
Significant Accounting Policies (Details) - Schedule of estimated residual value and estimated economic life of the specific assets [Line Items] | |
Description of useful life | Straight line, 3 years |
Right of use assets [Member] | |
Significant Accounting Policies (Details) - Schedule of estimated residual value and estimated economic life of the specific assets [Line Items] | |
Description of useful life | Shorter of useful life or lease term |
Significant Accounting Polici_5
Significant Accounting Policies (Details) - Schedule of financial assets and liabilities | 12 Months Ended |
Dec. 31, 2020 | |
Schedule of financial assets and liabilities [Abstract] | |
Cash | FVTPL |
Receivables | Amortized cost |
Restricted deposit | Amortized cost |
Deposit | Amortized cost |
Accounts payable and accrued liabilities | Amortized cost |
Notes payable | Amortized cost |
Accounts Receivable (Details)
Accounts Receivable (Details) | 12 Months Ended |
Dec. 31, 2020USD ($) | |
Accounts Receivable (Details) [Line Items] | |
Accounts receivable | $ (484,790) |
Subscription receivable | (90,000) |
Trade receivable | $ 484,790 |
Accounts receivable description | The factor advances funds to the Company at 90% of accounts receivable factored. The outstanding balance bears a daily interest rate of 0.05%. As of December 31, 2020, 100% of the monies owed were collected by the Company and the factoring agent under the terms of the Factor Agreement. The Company expenses the fees and interest charged by the factoring agent as a loss on factoring within its financial statements, which totaled $50,306 during the twelve month period ended December 31, 2020. |
GST [Member] | |
Accounts Receivable (Details) [Line Items] | |
Accounts receivable | $ (29,080) |
Restricted Deposit (Details)
Restricted Deposit (Details) - CAD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Disclosure Of Restricted Deposit [Abstract] | ||
Guaranteed investment | $ 11,497 | $ 11,500 |
Property and Equipment (Details
Property and Equipment (Details) - Schedule of property and equipment - CAD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Property and Equipment (Details) - Schedule of property and equipment [Line Items] | |||
Balance at Beginning | $ 1,331,848 | $ 114,739 | |
Additions | 1,217,109 | ||
Balance at Ending | 1,331,848 | 1,331,848 | 114,739 |
Balance at Beginning | 382,850 | 55,629 | 25,987 |
Amortization for the year | 323,060 | 327,221 | 29,642 |
Balance at Ending | 705,910 | 382,850 | 55,629 |
Carrying amounts | 625,938 | 948,998 | 59,110 |
Computers [Member] | |||
Property and Equipment (Details) - Schedule of property and equipment [Line Items] | |||
Balance at Beginning | 114,739 | 114,739 | 76,256 |
Additions | 38,483 | ||
Balance at Ending | 114,739 | 114,739 | 114,739 |
Balance at Beginning | 86,324 | 55,629 | 25,987 |
Amortization for the year | 24,062 | 30,695 | 29,642 |
Balance at Ending | 110,386 | 86,324 | 55,629 |
Carrying amounts | 4,353 | 28,415 | 59,110 |
Right of Use Asset [Member] | |||
Property and Equipment (Details) - Schedule of property and equipment [Line Items] | |||
Balance at Beginning | 1,217,109 | ||
Additions | 1,217,109 | ||
Balance at Ending | 1,217,109 | 1,217,109 | |
Balance at Beginning | 296,526 | ||
Amortization for the year | 298,998 | 296,526 | |
Balance at Ending | 595,524 | 296,526 | |
Carrying amounts | $ 621,585 | $ 920,583 |
Non-Controlling Interest in V_3
Non-Controlling Interest in Versus LLC (Details) - $ / shares | 1 Months Ended | ||
Jun. 21, 2019 | May 21, 2019 | Dec. 31, 2018 | |
Versus LLC [Member] | |||
Non-Controlling Interest in Versus LLC (Details) [Line Items] | |||
Ownership interest percentage | 41.30% | ||
Newco [Member] | |||
Non-Controlling Interest in Versus LLC (Details) [Line Items] | |||
Ownership interest percentage | 0.30% | 25.20% | |
Exchange of common shares | 2,825 | 574,009 | |
Purchase of warrants, shares | 1,412 | 287,005 | |
Exercise price (in Dollars per share) | $ 3.20 | $ 3.20 | |
Business combination, description | The common shares and the share purchase warrants were determined to have a fair value of $9,263 and $3,389, respectively. As a result, the Company increased its ownership interest to 66.8% and recorded the excess purchase price over net identifiable assets of $34,714 against reserves. The effect on non-controlling interest was a reduction of $22,061. | The common shares and the share purchase warrants were determined to have a fair value of $1,882,749 and $156,389, respectively. As a result, the Company increased its ownership interest to 66.5% and recorded the excess purchase price over net identifiable liabilities of $4,644,719 against reserves. The effect on non-controlling interest was a reduction of $2,605,582. |
Non-Controlling Interest in V_4
Non-Controlling Interest in Versus LLC (Details) - Schedule of financial information before intragroup eliminations for non-wholly owned subsidiary - CAD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Schedule of financial information before intragroup eliminations for non-wholly owned subsidiary [Abstract] | |||
Non-controlling interest percentage | 33.20% | 33.20% | 58.70% |
Assets | |||
Current | $ 1,012,081 | $ 103,398 | $ 72,222 |
Non-current | 2,974,249 | 3,739,445 | 3,566,490 |
Total Assets | 3,986,330 | 3,842,843 | 3,638,712 |
Liabilities | |||
Current | 1,325,230 | 823,285 | 740,249 |
Non-current | 22,510,724 | 17,851,531 | 11,059,323 |
Total Liabilities | 23,835,954 | 18,674,816 | 11,799,572 |
Net liabilities | (19,849,624) | (14,831,973) | (8,160,860) |
Non-controlling interest | (7,547,035) | (6,024,450) | (5,893,609) |
Loss and comprehensive loss | (4,586,099) | (6,671,113) | (7,766,709) |
Loss and comprehensive loss attributed to non-controlling interest | $ (1,522,585) | $ (2,758,484) | $ (4,741,694) |
Intangible Assets (Details) - S
Intangible Assets (Details) - Schedule of intangible assets - Software [Member] - CAD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Cost | |||
Balance at Beginning | $ 11,737,067 | $ 9,797,209 | $ 7,993,002 |
Balance at Ending | 12,920,595 | 11,737,067 | 9,797,209 |
Additions | 1,183,528 | 1,939,858 | 1,804,207 |
Accumulated amortization | |||
Balance at Beginning | 8,956,720 | 6,426,130 | 3,461,095 |
Balance at Ending | 10,663,692 | 8,956,720 | 6,426,130 |
Amortization | 1,706,972 | 2,530,590 | 2,965,035 |
Carrying amounts | |||
Carrying amounts | $ 2,256,903 | $ 2,780,347 | $ 3,371,079 |
Accounts Payable and Accrued _3
Accounts Payable and Accrued Liabilities (Details) - Schedule accounts payable and accrued liabilities - CAD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Schedule accounts payable and accrued liabilities [Abstract] | ||
Accounts payable | $ 716,177 | $ 446,988 |
Due to related parties | 716,808 | 492,181 |
Accrued liabilities | 461,840 | 36,236 |
Total | $ 1,894,825 | $ 975,405 |
Notes Payable (Details)
Notes Payable (Details) | 1 Months Ended | 12 Months Ended | ||||
May 31, 2020CAD ($) | May 31, 2020USD ($) | Dec. 31, 2020CAD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2019CAD ($) | Dec. 31, 2018CAD ($) | |
Notes Payable (Details) [Line Items] | ||||||
Proceeds unsecured notes payable | $ 1,261,254 | $ 2,633,667 | $ 10 | |||
Loans bearing interest percentage | 3.95% | |||||
Maturity term | 3 years | 3 years | 3 years | |||
Estimated market borrowing rate percentage | 10.00% | 10.00% | 10.00% | |||
Contribution benefit reserves | $ 228,497 | $ 297,710 | ||||
Accrued interest | 472,107 | 249,496 | ||||
Finance expense | 371,061 | $ 257,448 | $ 125,903 | |||
Proceeds aggregate amount | $ 610,247 | |||||
Payroll cost | $ 829,937 | |||||
Total loan (in Dollars) | $ 228,269 | |||||
Bottom of range [member] | ||||||
Notes Payable (Details) [Line Items] | ||||||
Loans bearing interest percentage | 2.45% | 2.45% | ||||
Top of range [member] | ||||||
Notes Payable (Details) [Line Items] | ||||||
Loans bearing interest percentage | 3.95% | 3.95% | ||||
PPP [Member] | ||||||
Notes Payable (Details) [Line Items] | ||||||
Maturity term | 2 years | 2 years | ||||
Proceeds aggregate amount | $ 829,937 | |||||
Interest rate | 1.00% |
Notes Payable (Details) - Sched
Notes Payable (Details) - Schedule of notes to their present value | 12 Months Ended | |||||
Dec. 31, 2020CAD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2019CAD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018CAD ($) | Dec. 31, 2018USD ($) | |
Schedule of notes to their present value [Abstract] | ||||||
Balance at Beginning | $ 4,814,767 | $ 3,478,956 | $ 747,322 | |||
Proceeds | $ 1,261,254 | 1,261,254 | $ 2,633,667 | 2,633,667 | $ 3,106,652 | 3,106,652 |
Repayments | $ (336,000) | (336,000) | $ (1,258,194) | (1,258,194) | ||
Contribution benefit | (228,497) | (297,110) | (500,921) | |||
Finance expense | 371,061 | 257,448 | 125,903 | |||
Balance at Ending | 5,882,585 | $ 4,814,767 | $ 3,478,956 | |||
Current | 2,975,747 | |||||
Non-current | $ 2,906,838 |
Share Capital and Reserves (Det
Share Capital and Reserves (Details) | Jul. 17, 2020CAD ($)$ / sharesshares | Feb. 13, 2020CAD ($)$ / sharesshares | Aug. 09, 2019$ / sharesshares | Feb. 14, 2019CAD ($)$ / sharesshares | Feb. 13, 2019 | Apr. 12, 2018USD ($)$ / sharesshares | Nov. 18, 2020$ / sharesshares | Jul. 26, 2019$ / sharesshares | Apr. 12, 2018CAD ($) | Mar. 29, 2018USD ($)$ / sharesshares | Sep. 30, 2016CAD ($) | Dec. 31, 2020CAD ($)$ / sharesshares | Dec. 31, 2020USD ($)$ / sharesshares | Dec. 31, 2019CAD ($)$ / sharesshares | Dec. 31, 2018CAD ($)shares | Dec. 31, 2018USD ($)$ / sharesshares |
Share Capital and Reserves (Details) [Line Items] | ||||||||||||||||
Number of common shares | shares | 624,228 | 766,231 | ||||||||||||||
Granted total of stock options | shares | 150,000 | 150,000 | ||||||||||||||
Granted stock options price per share | $ / shares | $ 4 | |||||||||||||||
Fair value of granted stock options | $ 600,000 | |||||||||||||||
Warrants, description | Each unit consisted of one common share and a one half share purchase warrant for each share purchased. Each whole warrant entitles the holder to purchase one additional common share at a price of $6.40 until November 17, 2022. | Each unit consisted of one common share and a one half share purchase warrant for each share purchased. Each whole warrant entitles the holder to purchase one additional common share at a price of $6.40 until November 17, 2022. | Each unit consisted of one common share and a one common stock warrant for each share purchased. Each warrant entitles the holder to purchase one additional common share at a price of $4.80 until February 14, 2021. | Each whole warrant entitles the holder to purchase one additional common share at a price of $6.40 until November 17, 2022. iv) entered into a Mutual Investment Agreement with Animoca Brands Inc. (Animoca) in which the Company issued 181,547 shares of the Company’s common stock with a value of $698,557 in exchange for 4,327,431 shares of Animoca common stock. On the same date, the Company issued an additional 89,088 shares of the Company’s common stock with a value of $349,225 to Animoca in exchange for services (included in professional fees). The Company subsequently sold all of its shares of Animoca and recognized a loss of $508,050. v) Issued, 1,058,993 common shares pursuant to exercise of 1,056,143 warrants and 3,750 stock options for total proceeds of $4,596,193. During the year ended December 31, 2019, the Company: i) issued, 624,228 units at a price of $2.88 per unit for total proceeds of $1,797,778. Each unit consisted of one common share and a one common stock warrant for each share purchased. Each warrant entitles the holder to purchase one additional common share at a price of $4.80 until February 14, 2021. ii) issued, 1,094,844 units pursuant to a private placement at a price of $3.20 per unit for total proceeds of $3,503,500. Each unit consisted of one common share and a one common stock warrant for each share purchased. Each warrant entitles the holder to purchase one additional common share at a price of $5.60 until July 26, 2021. iii) issued, 284,092 units at a price of $3.52 per unit for total proceeds of $1,000,000. Each unit consisted of one common share and one common stock warrant for each share purchased. Each warrant entitles the holder to purchase one additional common share at a price of $5.60 until August 9, 2021. v) issued 576,834 common shares at a value of $1,892,012 on acquisition of Versus LLC shares (Note 6). vi) issued 158,115 common shares pursuant to the exercise of share purchase warrants and stock options for total proceeds of $425,417. During the year ended December 31, 2018, the Company: i)issued, 766,231 units at a price of $4.80 per unit for total proceeds of $3,677,900. Each unit consisted of one common share and a one half common stock warrant for each share purchased. Each whole warrant entitles the holder to purchase one additional common share at a price of $6.40 until April 12, 2020. A residual value of $78,957 was allocated to the warrants. | Each whole warrant entitles the holder to purchase one additional common share at a price of $6.40 until November 17, 2022. iv) entered into a Mutual Investment Agreement with Animoca Brands Inc. (Animoca) in which the Company issued 181,547 shares of the Company’s common stock with a value of $698,557 in exchange for 4,327,431 shares of Animoca common stock. On the same date, the Company issued an additional 89,088 shares of the Company’s common stock with a value of $349,225 to Animoca in exchange for services (included in professional fees). The Company subsequently sold all of its shares of Animoca and recognized a loss of $508,050. v) Issued, 1,058,993 common shares pursuant to exercise of 1,056,143 warrants and 3,750 stock options for total proceeds of $4,596,193. During the year ended December 31, 2019, the Company: i) issued, 624,228 units at a price of $2.88 per unit for total proceeds of $1,797,778. Each unit consisted of one common share and a one common stock warrant for each share purchased. Each warrant entitles the holder to purchase one additional common share at a price of $4.80 until February 14, 2021. ii) issued, 1,094,844 units pursuant to a private placement at a price of $3.20 per unit for total proceeds of $3,503,500. Each unit consisted of one common share and a one common stock warrant for each share purchased. Each warrant entitles the holder to purchase one additional common share at a price of $5.60 until July 26, 2021. iii) issued, 284,092 units at a price of $3.52 per unit for total proceeds of $1,000,000. Each unit consisted of one common share and one common stock warrant for each share purchased. Each warrant entitles the holder to purchase one additional common share at a price of $5.60 until August 9, 2021. v) issued 576,834 common shares at a value of $1,892,012 on acquisition of Versus LLC shares (Note 6). vi) issued 158,115 common shares pursuant to the exercise of share purchase warrants and stock options for total proceeds of $425,417. During the year ended December 31, 2018, the Company: i)issued, 766,231 units at a price of $4.80 per unit for total proceeds of $3,677,900. Each unit consisted of one common share and a one half common stock warrant for each share purchased. Each whole warrant entitles the holder to purchase one additional common share at a price of $6.40 until April 12, 2020. A residual value of $78,957 was allocated to the warrants. | |||||||||||
Exchange for marketing services (in Dollars) | $ 349,225 | |||||||||||||||
Recognized a loss (in Dollars) | $ 508,050 | |||||||||||||||
Common shares to exercise of warrants. | shares | 1,058,993 | 1,058,993 | 158,115 | 153,750 | 153,750 | |||||||||||
Warrants issued | shares | 1,056,143 | 1,056,143 | ||||||||||||||
Common shares issued for stock options | shares | 3,750 | 3,750 | ||||||||||||||
Total proceeds value | $ 1,797,778 | $ 3,677,900 | ||||||||||||||
Price per unit | (per share) | $ 2.88 | $ 4.80 | ||||||||||||||
Common shares of acquisition | shares | 10 | 10 | 576,834 | |||||||||||||
Value of acquisition stock (in Dollars) | $ 1,892,012 | |||||||||||||||
Stock options for total proceeds (in Dollars) | $ 425,417 | |||||||||||||||
Purchase warrants for total proceeds (in Dollars) | $ 384,000 | |||||||||||||||
Escrow, description | At December 31, 2020, 313 common shares (December 31, 2019 and 2018 – 313) of the Company are held in escrow due to misplaced share certificates originally issued to three individual shareholders. | At December 31, 2020, 313 common shares (December 31, 2019 and 2018 – 313) of the Company are held in escrow due to misplaced share certificates originally issued to three individual shareholders. | ||||||||||||||
Common shares issued and outstanding percentage | 10.00% | 10.00% | ||||||||||||||
Stock options fair value | $ 1,216,228 | |||||||||||||||
Share-based compensation | $ 651,316 | |||||||||||||||
Purchase of warrants | shares | 75,000 | 284,093 | 43,696 | 383,120 | 14,088 | 383,120 | ||||||||||
Warrants exercise price | (per share) | $ 6.40 | $ 5.60 | $ 2.88 | $ 6.40 | $ 5.60 | $ 6.40 | ||||||||||
Term of warrants | 2 years | 2 years | 2 years | 2 years | 2 years | |||||||||||
Share purchase warrants fair value | $ 199,753 | $ 140,531 | $ 140,531 | |||||||||||||
Warrants term, description | 24 months | |||||||||||||||
Fair value of issuance of performance warrants (in Dollars) | $ 1,725,496 | |||||||||||||||
Scholes option pricing model [Member] | ||||||||||||||||
Share Capital and Reserves (Details) [Line Items] | ||||||||||||||||
Purchase of warrants | shares | 44,463 | 44,463 | ||||||||||||||
Warrants exercise price | $ / shares | $ 4.80 | $ 4.80 | ||||||||||||||
Term of warrants | 2 years | 2 years | ||||||||||||||
Share purchase warrants fair value | $ 116,226 | $ 116,226 | ||||||||||||||
Class A share [Member] | ||||||||||||||||
Share Capital and Reserves (Details) [Line Items] | ||||||||||||||||
Number of common shares | shares | 5,057 | |||||||||||||||
Issued capital [member] | ||||||||||||||||
Share Capital and Reserves (Details) [Line Items] | ||||||||||||||||
Number of common shares | shares | 625,000 | 284,092 | ||||||||||||||
Granted stock options price per share | $ / shares | $ 4 | |||||||||||||||
Fair value of granted stock options | $ 2,500,000 | |||||||||||||||
Warrants, description | Each unit consisted of one common share and a one half share purchase warrant for each share purchased. Each whole warrant entitles the holder to purchase one additional common share at a price of $6.40 until November 17, 2022. | Each unit consisted of one common share and a one half share purchase warrant for each share purchased. Each whole warrant entitles the holder to purchase one additional common share at a price of $6.40 until November 17, 2022. | Each unit consisted of one common share and one common stock warrant for each share purchased. Each warrant entitles the holder to purchase one additional common share at a price of $5.60 until August 9, 2021. | |||||||||||||
Total proceeds value | $ 1,000,000 | |||||||||||||||
Price per unit | $ / shares | $ 3.52 | |||||||||||||||
Stock Options [Member] | ||||||||||||||||
Share Capital and Reserves (Details) [Line Items] | ||||||||||||||||
Price per unit | $ / shares | $ 2.69 | |||||||||||||||
Warrants [Member] | ||||||||||||||||
Share Capital and Reserves (Details) [Line Items] | ||||||||||||||||
Granted total of stock options | shares | 172,532 | 172,532 | ||||||||||||||
Granted stock options price per share | $ / shares | $ 4 | |||||||||||||||
Fair value of granted stock options | $ 690,125 | |||||||||||||||
Warrants, description | Each warrant entitles the holder to purchase one additional common share at a price of $6.40 until July 17, 2022. iii) issued, 625,000 units at a price of $4.00 per unit for total proceeds of $2,500,000. Each unit consisted of one common share and a one half share purchase warrant for each share purchased. | Each warrant entitles the holder to purchase one additional common share at a price of $6.40 until July 17, 2022. iii) issued, 625,000 units at a price of $4.00 per unit for total proceeds of $2,500,000. Each unit consisted of one common share and a one half share purchase warrant for each share purchased. | ||||||||||||||
Animoca Brands Inc [Member] | ||||||||||||||||
Share Capital and Reserves (Details) [Line Items] | ||||||||||||||||
Number of common shares | shares | 181,547 | |||||||||||||||
Issued common stock value (in Dollars) | $ 698,557 | |||||||||||||||
Exchange shares of common stock | shares | 4,327,431 | 4,327,431 | ||||||||||||||
Additional shares of common stock | shares | 89,088 | 89,088 | ||||||||||||||
Number of recognized gain loss (in Dollars) | $ 625,250 | |||||||||||||||
Private placements [Member] | ||||||||||||||||
Share Capital and Reserves (Details) [Line Items] | ||||||||||||||||
Number of common shares | shares | 1,094,844 | |||||||||||||||
Warrants, description | issued, 1,094,844 units pursuant to a private placement at a price of $3.20 per unit for total proceeds of $3,503,500. Each unit consisted of one common share and a one common stock warrant for each share purchased. Each warrant entitles the holder to purchase one additional common share at a price of $5.60 until July 26, 2021. | |||||||||||||||
Total proceeds value | $ 3,503,500 | |||||||||||||||
Purchase of warrants | shares | 172,532 | 624,228 | 625,000 | 1,094,844 | ||||||||||||
Warrants exercise price | $ / shares | $ 4 | $ 4.80 | $ 4 | $ 5.60 | ||||||||||||
Term of warrants | 2 years | 2 years | 2 years | 2 years | ||||||||||||
Share purchase warrants fair value | $ 55,210 | $ 20,985 | ||||||||||||||
Private placements [Member] | Residual Value Method [Member] | ||||||||||||||||
Share Capital and Reserves (Details) [Line Items] | ||||||||||||||||
Share purchase warrants fair value | $ 199,753 | |||||||||||||||
Private placements [Member] | Scholes option pricing model [Member] | ||||||||||||||||
Share Capital and Reserves (Details) [Line Items] | ||||||||||||||||
Share purchase warrants fair value | $ 61,843 | |||||||||||||||
Stock Options [Member] | ||||||||||||||||
Share Capital and Reserves (Details) [Line Items] | ||||||||||||||||
Price per unit | (per share) | $ 3.52 | $ 5.92 | ||||||||||||||
Stocks option granted | shares | 470,083 | 470,083 | ||||||||||||||
Stock options fair value | $ 1,724,580 | $ 343,711 | ||||||||||||||
Share-based compensation | $ 1,407,414 | |||||||||||||||
Stock options vested (in Dollars) | $ 826,360 | |||||||||||||||
Purchase of warrants | shares | 482,500 | |||||||||||||||
Payments for Repurchase of Warrants (in Dollars) | $ 72,284 | |||||||||||||||
Warrants [Member] | ||||||||||||||||
Share Capital and Reserves (Details) [Line Items] | ||||||||||||||||
Total proceeds value | $ 4,596,193 | |||||||||||||||
Scholes option pricing model [Member] | ||||||||||||||||
Share Capital and Reserves (Details) [Line Items] | ||||||||||||||||
Share purchase warrants fair value | $ 61,843 | |||||||||||||||
Newco shares [Member] | Animoca Brands Inc [Member] | ||||||||||||||||
Share Capital and Reserves (Details) [Line Items] | ||||||||||||||||
Number of common shares | shares | 288,416 | |||||||||||||||
Acquisition shares of value (in Dollars) | $ 159,778 |
Share Capital and Reserves (D_2
Share Capital and Reserves (Details) - Schedule of outstanding stock options | 12 Months Ended | ||
Dec. 31, 2020$ / shares | Dec. 31, 2019$ / shares | Dec. 31, 2018$ / shares | |
Schedule of outstanding stock options [Abstract] | |||
Number Outstanding, Balance | 1,013,399 | 549,524 | 531,559 |
Weighted Average Exercise Price, Balance | $ 5.12 | $ 4.96 | $ 4.96 |
Number of Outstanding, Balance | 1,353,825 | 1,013,399 | 549,524 |
Weighted Average Excercise Price, Balance | $ 4.70 | $ 5.12 | $ 4.96 |
Number of Outstanding, Granted | 470,083 | 482,500 | 72,284 |
Weighted Average Excercise Price, Granted | $ 4.11 | $ 5.28 | $ 5.92 |
Number of Outstanding, Exercised | (3,750) | (3,125) | |
Weighted Average Excercise Price, Exercised | $ 3.49 | $ 3.52 | |
Number of Outstanding, Forfeited | (125,907) | (15,500) | (54,319) |
Weighted Average Excercise Price, Forfeited | $ 6.04 | $ 6.72 | $ 5.28 |
Share Capital and Reserves (D_3
Share Capital and Reserves (Details) - Schedule of fair value of stock options - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Share Capital and Reserves (Details) - Schedule of fair value of stock options [Line Items] | |||
Risk-free interest rate | 0.37% | 1.59% | 2.18% |
Expected life of options | 5 years | 5 years | 5 years |
Expected dividend yield (in Dollars) | |||
Volatility | 87.79% | 95.80% | 111.60% |
Bottom of range [member] | |||
Share Capital and Reserves (Details) - Schedule of fair value of stock options [Line Items] | |||
Risk-free interest rate | 0.26% | ||
Expected life of options | 2 years | ||
Volatility | 79.44% | ||
Top of range [member] | |||
Share Capital and Reserves (Details) - Schedule of fair value of stock options [Line Items] | |||
Expected dividend yield (in Dollars) |
Share Capital and Reserves (D_4
Share Capital and Reserves (Details) - Schedule of incentive stock options outstanding | 12 Months Ended |
Dec. 31, 2020$ / sharesshares | |
Share Capital and Reserves (Details) - Schedule of incentive stock options outstanding [Line Items] | |
Options Outstanding | 1,353,825 |
Options Exercisable | 719,895 |
Exercise Price (in Dollars per share) | $ / shares | $ 4.70 |
Weighted Average Remaining Life | 2.53 |
July 13, 2021 [Member] | |
Share Capital and Reserves (Details) - Schedule of incentive stock options outstanding [Line Items] | |
Expiry Date | July 13, 2021 |
Options Outstanding | 325,147 |
Options Exercisable | 316,066 |
Exercise Price (in Dollars per share) | $ / shares | $ 4.32 |
Weighted Average Remaining Life | 0.53 |
March 17, 2022 [Member] | |
Share Capital and Reserves (Details) - Schedule of incentive stock options outstanding [Line Items] | |
Expiry Date | March 17, 2022 |
Options Outstanding | 13,063 |
Options Exercisable | 12,451 |
Exercise Price (in Dollars per share) | $ / shares | $ 6.96 |
Weighted Average Remaining Life | 1.21 |
May 18, 2022 [Member] | |
Share Capital and Reserves (Details) - Schedule of incentive stock options outstanding [Line Items] | |
Expiry Date | May 18, 2022 |
Options Outstanding | 5,750 |
Options Exercisable | 5,301 |
Exercise Price (in Dollars per share) | $ / shares | $ 7.84 |
Weighted Average Remaining Life | 1.38 |
July 31, 2022 [Member] | |
Share Capital and Reserves (Details) - Schedule of incentive stock options outstanding [Line Items] | |
Expiry Date | July 31, 2022 |
Options Outstanding | 171,114 |
Options Exercisable | 103,381 |
Exercise Price (in Dollars per share) | $ / shares | $ 4 |
Weighted Average Remaining Life | 1.58 |
September 14, 2022 [Member] | |
Share Capital and Reserves (Details) - Schedule of incentive stock options outstanding [Line Items] | |
Expiry Date | September 14, 2022 |
Options Outstanding | 74,156 |
Options Exercisable | 64,216 |
Exercise Price (in Dollars per share) | $ / shares | $ 5.52 |
Weighted Average Remaining Life | 1.70 |
November 19, 2022 [Member] | |
Share Capital and Reserves (Details) - Schedule of incentive stock options outstanding [Line Items] | |
Expiry Date | November 19, 2022 |
Options Outstanding | 12,500 |
Options Exercisable | 521 |
Exercise Price (in Dollars per share) | $ / shares | $ 6 |
Weighted Average Remaining Life | 1.88 |
June 6, 2023 [Member] | |
Share Capital and Reserves (Details) - Schedule of incentive stock options outstanding [Line Items] | |
Expiry Date | June 6, 2023 |
Options Outstanding | 14,063 |
Options Exercisable | 8,789 |
Exercise Price (in Dollars per share) | $ / shares | $ 7.36 |
Weighted Average Remaining Life | 2.43 |
September 4, 2023 [Member] | |
Share Capital and Reserves (Details) - Schedule of incentive stock options outstanding [Line Items] | |
Expiry Date | September 4, 2023 |
Options Outstanding | 12,813 |
Options Exercisable | 6,204 |
Exercise Price (in Dollars per share) | $ / shares | $ 4 |
Weighted Average Remaining Life | 2.68 |
April 2, 2024 [Member] | |
Share Capital and Reserves (Details) - Schedule of incentive stock options outstanding [Line Items] | |
Expiry Date | April 2, 2024 |
Options Outstanding | 107,500 |
Options Exercisable | 52,500 |
Exercise Price (in Dollars per share) | $ / shares | $ 3.36 |
Weighted Average Remaining Life | 3.26 |
June 27, 2024 [Member] | |
Share Capital and Reserves (Details) - Schedule of incentive stock options outstanding [Line Items] | |
Expiry Date | June 27, 2024 |
Options Outstanding | 6,250 |
Options Exercisable | 4,688 |
Exercise Price (in Dollars per share) | $ / shares | $ 3.36 |
Weighted Average Remaining Life | 3.49 |
July 24, 2024 [Member] | |
Share Capital and Reserves (Details) - Schedule of incentive stock options outstanding [Line Items] | |
Expiry Date | July 24, 2024 |
Options Outstanding | 148,344 |
Options Exercisable | 15,453 |
Exercise Price (in Dollars per share) | $ / shares | $ 4 |
Weighted Average Remaining Life | 3.57 |
September 27, 2024 [Member] | |
Share Capital and Reserves (Details) - Schedule of incentive stock options outstanding [Line Items] | |
Expiry Date | September 27, 2024 |
Options Outstanding | 312,500 |
Options Exercisable | 98,828 |
Exercise Price (in Dollars per share) | $ / shares | $ 6 |
Weighted Average Remaining Life | 3.74 |
October 22, 2024 [Member] | |
Share Capital and Reserves (Details) - Schedule of incentive stock options outstanding [Line Items] | |
Expiry Date | October 22, 2024 |
Options Outstanding | 12,500 |
Options Exercisable | 5,078 |
Exercise Price (in Dollars per share) | $ / shares | $ 5.28 |
Weighted Average Remaining Life | 3.81 |
July 24, 2025 [Member] | |
Share Capital and Reserves (Details) - Schedule of incentive stock options outstanding [Line Items] | |
Expiry Date | July 24, 2025 |
Options Outstanding | 113,125 |
Options Exercisable | 24,076 |
Exercise Price (in Dollars per share) | $ / shares | $ 4 |
Weighted Average Remaining Life | 4.57 |
August 10, 2025 [Member] | |
Share Capital and Reserves (Details) - Schedule of incentive stock options outstanding [Line Items] | |
Expiry Date | August 10, 2025 |
Options Outstanding | 12,500 |
Options Exercisable | 2,083 |
Exercise Price (in Dollars per share) | $ / shares | $ 4 |
Weighted Average Remaining Life | 4.61 |
November 19, 2024 [Member] | |
Share Capital and Reserves (Details) - Schedule of incentive stock options outstanding [Line Items] | |
Expiry Date | November 19, 2024 |
Options Outstanding | 12,500 |
Options Exercisable | 260 |
Exercise Price (in Dollars per share) | $ / shares | $ 6 |
Weighted Average Remaining Life | 3.89 |
Share Capital and Reserves (D_5
Share Capital and Reserves (Details) - Schedule of outstanding share purchase warrants - $ / shares | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Schedule of outstanding share purchase warrants [Abstract] | |||
Number Outstanding, Balance | 3,315,181 | 1,468,538 | 1,711,690 |
Weighted Average Exercise Price, Balance | $ 5.28 | $ 4.96 | $ 4.80 |
Number Outstanding, Balance | 2,692,622 | 3,315,181 | 1,468,538 |
Weighted Average Exercise Price, Balance | $ 5.88 | $ 5.28 | $ 4.96 |
Number Outstanding, Exercised | (1,056,143) | (154,990) | (153,750) |
Weighted Average Exercise Price, Exercised | $ 2.40 | $ 2.72 | $ 2.56 |
Number Outstanding, Expired | (438,948) | (347,732) | (517,000) |
Weighted Average Exercise Price, Expired | $ 4.32 | $ 3.20 | $ 6.40 |
Number Outstanding, Issued | 872,532 | 2,349,365 | 427,598 |
Weighted Average Exercise Price, Issued | $ 6.13 | $ 5.12 | $ 6.24 |
Share Capital and Reserves (D_6
Share Capital and Reserves (Details) - Schedule of assumptions in calculating the fair value of the warrants - CAD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Schedule of assumptions in calculating the fair value of the warrants [Abstract] | ||
Risk-free interest rate | 1.77% | 1.85% |
Expected life of options | 2 years | 2 years |
Expected dividend yield (in Dollars) | ||
Volatility | 107.14% | 86.44% |
Weighted average fair value per warrant (in Dollars per share) | $ 0.64 | $ 2.56 |
Share Capital and Reserves (D_7
Share Capital and Reserves (Details) - Schedule of share purchase warrants outstanding | 12 Months Ended | |
Dec. 31, 2020$ / sharesshares | ||
Share Capital and Reserves (Details) - Schedule of share purchase warrants outstanding [Line Items] | ||
Warrants Outstanding | shares | 2,692,622 | |
Exercise Price | $ / shares | $ 5.88 | |
Weighted Average Remaining Life | 354 days | |
February 13, 2021 [Member] | ||
Share Capital and Reserves (Details) - Schedule of share purchase warrants outstanding [Line Items] | ||
Expiry Date | February 13, 2021 | |
Warrants Outstanding | shares | 75,000 | |
Exercise Price | $ / shares | $ 6.40 | |
Weighted Average Remaining Life | 47 days | [1] |
February 14, 2021 [Member] | ||
Share Capital and Reserves (Details) - Schedule of share purchase warrants outstanding [Line Items] | ||
Expiry Date | February 14, 2021 | |
Warrants Outstanding | shares | 247,133 | |
Exercise Price | $ / shares | $ 4.80 | |
Weighted Average Remaining Life | 47 days | [1] |
February 14, 2021 One [Member] | ||
Share Capital and Reserves (Details) - Schedule of share purchase warrants outstanding [Line Items] | ||
Expiry Date | February 14, 2021 | |
Warrants Outstanding | shares | 6,883 | |
Exercise Price | $ / shares | $ 2.88 | |
Weighted Average Remaining Life | 47 days | [1] |
July 26, 2021 [Member] | ||
Share Capital and Reserves (Details) - Schedule of share purchase warrants outstanding [Line Items] | ||
Expiry Date | July 26, 2021 | |
Warrants Outstanding | shares | 952,117 | |
Exercise Price | $ / shares | $ 5.60 | |
Weighted Average Remaining Life | 208 days | |
July 26, 2021 One [Member] | ||
Share Capital and Reserves (Details) - Schedule of share purchase warrants outstanding [Line Items] | ||
Expiry Date | July 26, 2021 | |
Warrants Outstanding | shares | 9,866 | |
Exercise Price | $ / shares | $ 5.60 | |
Weighted Average Remaining Life | 208 days | |
August 9, 2021 [Member] | ||
Share Capital and Reserves (Details) - Schedule of share purchase warrants outstanding [Line Items] | ||
Expiry Date | August 9, 2021 | |
Warrants Outstanding | shares | 247,841 | |
Exercise Price | $ / shares | $ 5.60 | |
Weighted Average Remaining Life | 229 days | |
March 17, 2022 [Member] | ||
Share Capital and Reserves (Details) - Schedule of share purchase warrants outstanding [Line Items] | ||
Expiry Date | March 17, 2022 | |
Warrants Outstanding | shares | 356,250 | |
Exercise Price | $ / shares | $ 6.40 | |
Weighted Average Remaining Life | 1 year 76 days | |
July 17, 2022 [Member] | ||
Share Capital and Reserves (Details) - Schedule of share purchase warrants outstanding [Line Items] | ||
Expiry Date | July 17, 2022 | |
Warrants Outstanding | shares | 172,532 | |
Exercise Price | $ / shares | $ 6.40 | |
Weighted Average Remaining Life | 1 year 197 days | |
November 17, 2022 [Member] | ||
Share Capital and Reserves (Details) - Schedule of share purchase warrants outstanding [Line Items] | ||
Expiry Date | November 17, 2022 | |
Warrants Outstanding | shares | 625,000 | |
Exercise Price | $ / shares | $ 6.40 | |
Weighted Average Remaining Life | 1 year 321 days | |
[1] | See Note 19 |
Share Capital and Reserves (D_8
Share Capital and Reserves (Details) - Schedule of performance warrants outstanding | 12 Months Ended |
Dec. 31, 2020$ / sharesshares | |
Schedule of performance warrants outstanding [Abstract] | |
Expiry Date | June 30, 2021 |
Performance Warrants Outstanding | 625,250 |
Performance Warrants Exercisable | 625,250 |
Exercise Price | $ / shares | $ 4 |
Remaining Life | 0.50 |
Related Party Transactions (Det
Related Party Transactions (Details) - CAD ($) | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Disclosure of transactions between related parties [text block] [Abstract] | |||
Office sharing | $ 84,000 | ||
Occupancy costs | $ 84,000 | $ 76,000 | |
Amount of accounts payable and accrued liabilities | 757,265 | 492,181 | |
Long term notes amount | $ 6,220,254 | $ 5,470,000 |
Related Party Transactions (D_2
Related Party Transactions (Details) - Schedule of key management personnel - CAD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Related Party Transactions (Details) - Schedule of key management personnel [Line Items] | |||
Total | $ 1,876,616 | $ 1,446,540 | $ 1,222,606 |
Short-term employee benefits paid or accrued to the CEO of the Company, including share-based compensation vested for incentive stock options and performance warrants [Member] | |||
Related Party Transactions (Details) - Schedule of key management personnel [Line Items] | |||
Total | 375,858 | 382,002 | 434,543 |
Short-term employee benefits paid or accrued to the CFO of the Company, including share-based compensation vested for incentive stock options [Member] | |||
Related Party Transactions (Details) - Schedule of key management personnel [Line Items] | |||
Total | 366,818 | 262,432 | 150,706 |
Short-term employee benefits paid or accrued to a member of the advisory board of the Company, including share-based compensation vested for incentive stock options and performance warrants [Member] | |||
Related Party Transactions (Details) - Schedule of key management personnel [Line Items] | |||
Total | 290,314 | 62,209 | 297,445 |
Short-term employee benefits paid or accrued to the Vice President of Engineering of the Company, including share-based compensation vested for incentive stock options and performance warrants [Member] | |||
Related Party Transactions (Details) - Schedule of key management personnel [Line Items] | |||
Total | 403,626 | 297,140 | 238,456 |
Short-term employee benefits paid or accrued to certain directors and officers of the Company including share-based compensation vested for incentive stock options and performance warrants [Member] | |||
Related Party Transactions (Details) - Schedule of key management personnel [Line Items] | |||
Total | $ 440,000 | $ 442,757 | $ 101,456 |
Financial Instruments and Ris_3
Financial Instruments and Risk Management (Details) - CAD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of financial risk management [text block] [Abstract] | |||
Exchange rate, percentage | 10.00% | ||
Net Loss | $ 220,000 | $ 148,000 | $ 71,000 |
Financial Instruments and Ris_4
Financial Instruments and Risk Management (Details) - Schedule of foreign currency risk - CAD ($) | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Schedule of foreign currency risk [Abstract] | |||
Cash | $ 86,800 | $ 72,097 | $ 25,689 |
Lease obligations | (741,868) | (768,563) | |
Accounts payable and accrued liabilities | (1,092,402) | (445,660) | (543,790) |
Total | $ (1,747,470) | $ (1,142,126) | $ (518,101) |
Geographical Segmented Inform_3
Geographical Segmented Information (Details) | Dec. 31, 2020USD ($) |
Disclosure of geographical areas [text block] [Abstract] | |
Due from customer | $ (484,790) |
Geographical Segmented Inform_4
Geographical Segmented Information (Details) - Schedule of identifiable assets by geographic segments - CAD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Geographical Segmented Information (Details) - Schedule of identifiable assets by geographic segments [Line Items] | ||
Restricted deposits | $ 11,497 | $ 11,500 |
Deposits | 127,812 | 129,897 |
Property and equipment | 625,938 | 948,998 |
Intangible assets | 2,256,903 | 2,780,347 |
Canada [Member] | ||
Geographical Segmented Information (Details) - Schedule of identifiable assets by geographic segments [Line Items] | ||
Restricted deposits | 11,497 | 11,500 |
Deposits | ||
Property and equipment | 44,316 | 119,797 |
Intangible assets | ||
USA Member] | ||
Geographical Segmented Information (Details) - Schedule of identifiable assets by geographic segments [Line Items] | ||
Restricted deposits | ||
Deposits | 127,812 | 129,897 |
Property and equipment | 581,622 | 829,201 |
Intangible assets | $ 2,256,903 | $ 2,780,347 |
Supplemental Cash Flow Inform_3
Supplemental Cash Flow Information (Details) - Schedule of supplemental cash flow Information - CAD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Non-cash investing and financing activities: | |||
Contribution benefit on low interest rate notes (Note 9) | $ 228,497 | $ 182,299 | $ 500,921 |
Shares issued to acquire Newco shares (Note 6) | 1,892,012 | ||
Deferred financing cost included in accrued expenses | 423,392 | ||
Residual value of units | 55,210 | 78,957 | |
Fair value of broker warrants | 116,226 | ||
Interest paid during the year | 56,144 | ||
Income taxes paid during the year |
Lease Obligations and Commitm_3
Lease Obligations and Commitments (Details) - CAD ($) | Sep. 06, 2017 | May 31, 2018 |
Lease Obligations And Commitments [Abstract] | ||
Monthly fee | $ 7,000 | |
Description of lessor leasing arrangements, operating leases | Under the terms of the agreement the Company will pay monthly rent starting at US$17,324 commencing on October 1, 2017 until September 30, 2022. |
Lease Obligations and Commitm_4
Lease Obligations and Commitments (Details) - Schedule of lease liabilities - CAD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Schedule of lease liabilities [Abstract] | ||
Lease liabilities recognized at beginning | $ 1,122,400 | $ 1,469,664 |
Lease payments made | (409,819) | (359,119) |
Interest expense on lease liabilities | 80,640 | 104,384 |
Foreign exchange adjustment | 39,767 | (92,529) |
Lease liabilities, Total | 832,985 | |
Less: current portion | (271,669) | |
At December 31, 2020 | $ 561,316 | $ 1,122,400 |
Lease Obligations and Commitm_5
Lease Obligations and Commitments (Details) - Schedule of maturity lease liabilities | Dec. 31, 2020CAD ($) |
Schedule of maturity lease liabilities [Abstract] | |
2022 | $ 49,000 |
Lease Obligations and Commitm_6
Lease Obligations and Commitments (Details) - Schedule of rental agreement for office space - Rental agreement [Member] | Dec. 31, 2020CAD ($) |
Lease Obligations and Commitments (Details) - Schedule of rental agreement for office space [Line Items] | |
2021 | $ 251,384 |
2022 | 260,185 |
2023 | $ 131,576 |
Income Taxes (Details) - Schedu
Income Taxes (Details) - Schedule of income taxes at statutory rates - CAD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Schedule of income taxes at statutory rates [Abstract] | |||
Loss for the year | $ (9,271,160) | $ (9,627,605) | $ (9,373,171) |
Expected income tax (recovery) | (2,503,000) | (2,599,000) | (2,531,000) |
Change in statutory, foreign tax, foreign exchange rates and other | 369,000 | 528,000 | (96,000) |
Permanent differences | 541,000 | 345,000 | 180,000 |
Share issue costs | (154,000) | (121,000) | |
Adjustment to prior years provision versus statutory tax returns | (47,000) | 4,157,000 | (1,026,000) |
Change in unrecognized deductible temporary differences | 1,640,000 | (2,277,000) | 3,594,000 |
Income tax expense |
Income Taxes (Details) - Sche_2
Income Taxes (Details) - Schedule of deferred income taxes - CAD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Schedule of deferred income taxes [Abstract] | |||
Non-capital losses carry-forward | $ 10,519,000 | $ 9,054,000 | $ 17,116,000 |
Exploration and evaluation assets | 1,910,000 | 1,919,000 | 1,929,000 |
Share issuance costs | 141,000 | 200,000 | 109,000 |
Debt with accretion | (91,000) | (127,000) | (139,000) |
Intangible assets | 1,736,000 | 1,605,000 | 623,000 |
Allowable capital losses | 4,819,000 | 4,749,000 | 82,000 |
Property and equipment | 83,000 | 77,000 | 34,000 |
Total | 19,117,000 | 17,477,000 | 19,754,000 |
Unrecognized deferred tax assets | $ (19,117,000) | $ (17,477,000) | $ (19,754,000) |
Income Taxes (Details) - Sche_3
Income Taxes (Details) - Schedule of deferred income taxes unused tax credits and unused tax losses - CAD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Non-capital losses available for future periods - US [member[ | ||
Income Taxes (Details) - Schedule of deferred income taxes unused tax credits and unused tax losses [Line Items] | ||
Temporary differences, unused tax credits and unused tax losses | $ 19,962,000 | $ 15,498,000 |
Expiry Date Range | 2036 to indefinite | 2036 to indefinite |
Non-capital losses available for future periods - Canada [member] | ||
Income Taxes (Details) - Schedule of deferred income taxes unused tax credits and unused tax losses [Line Items] | ||
Temporary differences, unused tax credits and unused tax losses | $ 23,094,000 | $ 21,005,000 |
Expiry Date Range | 2026 to 2040 | 2026 to 2039 |
Allowable capital losses [member] | ||
Income Taxes (Details) - Schedule of deferred income taxes unused tax credits and unused tax losses [Line Items] | ||
Temporary differences, unused tax credits and unused tax losses | $ 17,847,000 | $ 17,588,000 |
Expiry Date Range | No expiry date | No expiry date |
Property and equipment [member] | ||
Income Taxes (Details) - Schedule of deferred income taxes unused tax credits and unused tax losses [Line Items] | ||
Temporary differences, unused tax credits and unused tax losses | $ 354,000 | $ 327,000 |
Expiry Date Range | No expiry date | No expiry date |
Intangible asset [member] | ||
Income Taxes (Details) - Schedule of deferred income taxes unused tax credits and unused tax losses [Line Items] | ||
Temporary differences, unused tax credits and unused tax losses | $ 8,267,000 | $ 7,642,000 |
Expiry Date Range | No expiry date | No expiry date |
Exploration and evaluation assets [member] | ||
Income Taxes (Details) - Schedule of deferred income taxes unused tax credits and unused tax losses [Line Items] | ||
Temporary differences, unused tax credits and unused tax losses | $ 7,075,000 | $ 7,108,000 |
Expiry Date Range | No expiry date | No expiry date |
Share issuance costs [member] | ||
Income Taxes (Details) - Schedule of deferred income taxes unused tax credits and unused tax losses [Line Items] | ||
Temporary differences, unused tax credits and unused tax losses | $ 521,000 | $ 740,000 |
Expiry Date Range | 2040 to 2043 |
Subsequent Events (Details)
Subsequent Events (Details) - CAD ($) | 1 Months Ended | 12 Months Ended | ||
Jan. 21, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Subsequent Events (Details) [Line Items] | ||||
Warrants exercised shares (in Shares) | 899,056 | |||
Warrants exercise price per share (in Dollars per share) | $ 3.32 | |||
Total proceeds warrants amount | $ 2,787,138 | |||
Warrants, description | Each unit consisted of one common share and a one half share purchase warrant for each share purchased. Each whole warrant entitles the holder to purchase one additional common share at a price of $6.40 until November 17, 2022. | Each unit consisted of one common share and a one common stock warrant for each share purchased. Each warrant entitles the holder to purchase one additional common share at a price of $4.80 until February 14, 2021. | Each whole warrant entitles the holder to purchase one additional common share at a price of $6.40 until November 17, 2022. iv) entered into a Mutual Investment Agreement with Animoca Brands Inc. (Animoca) in which the Company issued 181,547 shares of the Company’s common stock with a value of $698,557 in exchange for 4,327,431 shares of Animoca common stock. On the same date, the Company issued an additional 89,088 shares of the Company’s common stock with a value of $349,225 to Animoca in exchange for services (included in professional fees). The Company subsequently sold all of its shares of Animoca and recognized a loss of $508,050. v) Issued, 1,058,993 common shares pursuant to exercise of 1,056,143 warrants and 3,750 stock options for total proceeds of $4,596,193. During the year ended December 31, 2019, the Company: i) issued, 624,228 units at a price of $2.88 per unit for total proceeds of $1,797,778. Each unit consisted of one common share and a one common stock warrant for each share purchased. Each warrant entitles the holder to purchase one additional common share at a price of $4.80 until February 14, 2021. ii) issued, 1,094,844 units pursuant to a private placement at a price of $3.20 per unit for total proceeds of $3,503,500. Each unit consisted of one common share and a one common stock warrant for each share purchased. Each warrant entitles the holder to purchase one additional common share at a price of $5.60 until July 26, 2021. iii) issued, 284,092 units at a price of $3.52 per unit for total proceeds of $1,000,000. Each unit consisted of one common share and one common stock warrant for each share purchased. Each warrant entitles the holder to purchase one additional common share at a price of $5.60 until August 9, 2021. v) issued 576,834 common shares at a value of $1,892,012 on acquisition of Versus LLC shares (Note 6). vi) issued 158,115 common shares pursuant to the exercise of share purchase warrants and stock options for total proceeds of $425,417. During the year ended December 31, 2018, the Company: i)issued, 766,231 units at a price of $4.80 per unit for total proceeds of $3,677,900. Each unit consisted of one common share and a one half common stock warrant for each share purchased. Each whole warrant entitles the holder to purchase one additional common share at a price of $6.40 until April 12, 2020. A residual value of $78,957 was allocated to the warrants. | |
Issuance of share units (in Shares) | 215,341 | |||
Exchange for the forgiveness | $ 1,889,865 | |||
Accrued interest | 184,441 | |||
Notes payable outstanding | $ 477,619 | |||
Subsequent Events [Member] | ||||
Subsequent Events (Details) [Line Items] | ||||
Warrants exercised shares (in Shares) | 1,472,000 | |||
Warrants exercise price per share (in Dollars per share) | $ 7.50 | |||
Total proceeds warrants amount | $ 11,040,000 | |||
Warrants, description | Each unit consisted of one common share, one Unit A warrant and one Unit B warrant, each to purchase one common share at USD $7.50 per share until January 21, 2023. In connection with the offering, the Company incurred $517,360 in deferred financing costs as of December 31, 2020. |