Cover
Cover | 12 Months Ended |
Dec. 31, 2023 shares | |
Entity Addresses [Line Items] | |
Document Type | 20-F |
Amendment Flag | false |
Document Registration Statement | false |
Document Annual Report | true |
Document Transition Report | false |
Document Shell Company Report | false |
Document Period End Date | Dec. 31, 2023 |
Document Fiscal Period Focus | FY |
Document Fiscal Year Focus | 2023 |
Current Fiscal Year End Date | --12-31 |
Entity File Number | 001-40858 |
Entity Registrant Name | XORTX Therapeutics Inc. |
Entity Central Index Key | 0001729214 |
Entity Incorporation, State or Country Code | A1 |
Entity Address, Address Line One | 3710 — 33rd Street NW |
Entity Address, City or Town | Calgary |
Entity Address, State or Province | AB |
Entity Address, Country | CA |
Entity Address, Postal Zip Code | T2L 2M1 |
Title of 12(b) Security | Common Shares |
Trading Symbol | XRTX |
Security Exchange Name | NASDAQ |
Entity Well-known Seasoned Issuer | No |
Entity Voluntary Filers | No |
Entity Current Reporting Status | Yes |
Entity Interactive Data Current | Yes |
Entity Filer Category | Non-accelerated Filer |
Entity Emerging Growth Company | true |
Elected Not To Use the Extended Transition Period | false |
Document Accounting Standard | International Financial Reporting Standards |
Entity Shell Company | false |
Document Financial Statement Error Correction [Flag] | false |
Entity Common Stock, Shares Outstanding | 1,998,848 |
Auditor Firm ID | 995 |
Auditor Name | Smythe LLP |
Auditor Location | Vancouver, Canada |
Business Contact [Member] | |
Entity Addresses [Line Items] | |
Entity Address, Address Line One | 3710 — 33rd Street NW |
Entity Address, City or Town | Calgary |
Entity Address, State or Province | AB |
Entity Address, Country | CA |
Entity Address, Postal Zip Code | T2L 2M1 |
City Area Code | 403 |
Local Phone Number | 455-7727 |
Contact Personnel Name | James Fairbairn |
Contact Personnel Email Address | jfairbairn@xortx.com |
Consolidated Statements of Fina
Consolidated Statements of Financial Position - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 | Jan. 01, 2022 |
Current | |||
Cash | $ 3,447,665 | $ 10,434,196 | $ 14,869,861 |
Accounts receivable | 60,711 | 81,752 | 40,654 |
Prepaid expenses | 236,966 | 379,620 | 1,002,215 |
Deferred share issuance costs | 323,441 | ||
Total Current Assets | 4,068,783 | 10,895,568 | 15,912,730 |
Non-current | |||
Contract payments | 1,200,000 | 1,185,946 | 1,267,065 |
Intangible assets | 175,254 | 199,834 | 202,125 |
Property and equipment | 23,927 | 92,678 | |
Total Assets | 5,467,964 | 12,374,026 | 17,381,920 |
Current | |||
Accounts payable and accrued liabilities | 283,428 | 1,445,213 | 552,948 |
Current portion of lease obligation | 11,510 | 66,090 | |
Total Current Liabilities | 294,938 | 1,511,303 | 552,948 |
Non-current | |||
Derivative warrant liability | 531,000 | 3,854,403 | 3,626,375 |
Lease obligation | 11,509 | ||
Total Liabilities | 825,938 | 5,377,215 | 4,179,323 |
Shareholders' Equity | |||
Share capital | 17,056,535 | 16,524,354 | 16,088,677 |
Reserves | 5,468,257 | 6,197,158 | 4,991,594 |
Obligation to issue shares | 24,746 | 24,746 | 24,746 |
Accumulated other comprehensive (loss) income | (52,605) | (52,605) | 75,540 |
Accumulated deficit | (17,854,907) | (15,696,842) | (7,977,960) |
Total Shareholders' Equity | 4,642,026 | 6,996,811 | 13,202,597 |
Total Liabilities and Shareholders' Equity | $ 5,467,964 | $ 12,374,026 | $ 17,381,920 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Loss - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Expenses | |||
Research and development | $ 2,418,715 | $ 6,761,818 | $ 677,576 |
Consulting, wages and benefits | 1,037,558 | 885,460 | 804,047 |
Directors' fees | 179,406 | 122,572 | 49,366 |
Investor relations | 919,490 | 928,424 | 412,079 |
Professional fees | 514,263 | 454,071 | 226,374 |
General and administrative | 375,505 | 448,824 | 139,983 |
Public company costs | 170,184 | 120,813 | 188,642 |
Travel | 170,187 | 22,538 | 1,849 |
Amortization of property and equipment | 73,062 | 41,069 | |
Amortization of intangible assets | 66,632 | 17,077 | 14,266 |
Share-based payments | 120,984 | 487,940 | 396,423 |
Loss before other items | (6,045,986) | (10,290,606) | (2,910,605) |
Fair value adjustment on derivative warrant liability | 3,641,403 | 3,396,137 | 2,636,391 |
Foreign exchange loss | (7,025) | (1,546) | (12,373) |
Interest income (expense) | 253,543 | 103,589 | (4,451) |
Transaction costs on derivative warrant liability | (926,456) | (1,288,236) | |
Net loss for the year | (2,158,065) | (7,718,882) | (1,579,274) |
Items that may be subsequently reclassified to profit or loss: | |||
Currency translation differences | (128,145) | 150,464 | |
Total comprehensive loss for the year | $ (2,158,065) | $ (7,847,027) | $ (1,428,810) |
Basic and diluted loss per common share | |||
Basic loss per common share | $ (1.09) | $ (5.22) | $ (1.44) |
Diluted loss per common share | $ (1.09) | $ (5.22) | $ (1.44) |
Weighted average number of common shares outstanding | |||
Weighted average number of common shares outstanding, Basic | 1,981,734 | 1,479,914 | 1,094,182 |
Weighted average number of common shares outstanding, Diluted | 1,981,734 | 1,479,914 | 1,094,182 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Shareholders' Equity | Number of common shares CAD ($) shares | Share capital USD ($) shares | Reserves USD ($) | Obligation to issue shares USD ($) | Accumulated Deficit USD ($) | Accumulated other comprehensive (loss) income USD ($) | USD ($) |
Beginning balance, value at Dec. 31, 2020 | $ 768,302 | $ 758,296 | $ 24,746 | $ (6,398,686) | $ (74,924) | $ 986,654 | |
Beginning balance, Share at Dec. 31, 2020 | shares | 6,677,222 | ||||||
Statement | |||||||
Reclassification of derivative warrant liability | (3,506,565) | (3,506,565) | |||||
Shares issued pursuant to private placement | $ 573,935 | 573,935 | |||||
Shares issued pursuant to private placement (shares) | shares | 231,743 | ||||||
Shares issued pursuant to public listing | 7,467,772 | 7,467,772 | |||||
Shares issued pursuant to public listing (in shares) | shares | 362,333 | ||||||
Share issuance costs | (1,104,238) | 405,659 | (698,579) | ||||
Options exercised | 118,285 | (51,783) | 66,502 | ||||
Options exercised (in shares) | shares | 5,678 | ||||||
Pre-funded warrants exercised | 2,296,609 | (23,566) | 2,273,043 | ||||
Warrants exercised (in shares) | shares | 72,398 | ||||||
Share-based payments | 396,423 | 396,423 | |||||
Shares issued for services | 59,092 | 59,092 | |||||
Shares issued for services (in shares) | shares | 2,839 | ||||||
Net losses for the year | (1,579,274) | ||||||
Comprehensive loss (income) for the year | (1,579,274) | 150,464 | (1,428,810) | ||||
Ending balance, Value at Dec. 31, 2021 | 16,088,677 | 4,991,594 | 24,746 | (7,977,960) | 75,540 | 13,202,597 | |
Ending balance, Share at Dec. 31, 2021 | shares | 1,443,293 | ||||||
Statement | |||||||
Shares issued pursuant to public offering | 359,868 | 359,868 | |||||
Shares issued pursuant to public offering (shares) | shares | 155,555 | ||||||
Share issuance costs | (88,959) | (42,687) | (131,646) | ||||
Pre-funded warrants exercised | (164,768) | 164,704 | (64) | ||||
Pre-funded warrants exercised (in shares) | shares | 71,223 | ||||||
Share-based payments | 487,940 | 487,940 | |||||
Net losses for the year | (7,718,882) | ||||||
Pre-funded warrants issued | 925,015 | 925,015 | |||||
Comprehensive loss (income) for the year | (7,718,882) | (128,145) | (7,847,027) | ||||
Ending balance, Value at Dec. 31, 2022 | 16,524,354 | 6,197,158 | 24,746 | (15,696,842) | (52,605) | 6,996,811 | |
Ending balance, Share at Dec. 31, 2022 | shares | 1,670,071 | ||||||
Statement | |||||||
Reclassification of derivative warrant liability | (318,000) | (318,000) | |||||
Pre-funded warrants exercised | 532,181 | (531,885) | 296 | ||||
Pre-funded warrants exercised (in shares) | shares | 328,777 | ||||||
Share-based payments | (120,984) | (120,984) | |||||
Net losses for the year | (2,158,065) | ||||||
Comprehensive loss (income) for the year | (2,158,065) | (2,158,065) | |||||
Ending balance, Value at Dec. 31, 2023 | $ 17,056,535 | $ 5,468,257 | $ 24,746 | $ (17,854,907) | $ (52,605) | $ 4,642,026 | |
Ending balance, Share at Dec. 31, 2023 | shares | 1,998,848 |
Consolidated Statements of Ch_2
Consolidated Statements of Changes in Shareholders' Equity (Parenthetical) | Nov. 10, 2023 |
Consolidated Statements of Changes in Shareholders' Equity | |
Share conversion ratio | 0.1 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Operating activities | |||
Net loss for the year | $ (2,158,065) | $ (7,718,882) | $ (1,579,274) |
Items not affecting cash: | |||
Amortization | 139,694 | 58,146 | 14,266 |
Fair value adjustment on derivative warrant liability | (3,641,403) | (3,396,137) | (2,636,391) |
Fair value of finders' warrants allocated to derivative liability | 138,005 | ||
Share-based payments | 120,984 | 487,940 | 396,423 |
Unrealized foreign exchange (gain) loss | (13,634) | (6,391) | 28,258 |
Shares issued for services | 59,092 | ||
Changes in non-cash operating assets and liabilities: | |||
Accounts receivable | 21,041 | (41,098) | (29,383) |
Prepaid expenses | 142,654 | 622,595 | (794,713) |
Accounts payable and accrued liabilities | (1,194,436) | 892,265 | (259,323) |
Cash flows from (used in) operating activities | (6,583,165) | (8,963,557) | (4,801,045) |
Investing activities | |||
Acquisition of intangible assets | (42,052) | (26,005) | (31,807) |
Acquisition of equipment | (4,311) | (19,696) | |
Cash flows from (used in) investing activities | (46,363) | (45,701) | (31,807) |
Financing activities | |||
Pre-funded warrants and warrants exercised | 296 | 64 | 1,932,183 |
Payment of lease obligation | (66,089) | (20,410) | |
Cash share issuance costs | (295,251) | (269,555) | (698,579) |
Proceeds from issuance of equity instruments | 4,999,640 | 18,072,228 | |
Options exercised | 66,502 | ||
Net cash flows from (used in) financing activities | (361,044) | 4,709,739 | 19,372,334 |
Effect of foreign exchange loss (gain) on cash | 4,041 | 195,863 | |
(Decrease) increase in cash | (6,986,531) | (4,435,665) | 14,735,345 |
Cash, beginning of year | 10,434,196 | 14,869,861 | 134,516 |
Cash, end of year | $ 3,447,665 | 10,434,196 | 14,869,861 |
Supplemental Cash Flow and Non-Cash Investing and Financing Activities Disclosure | |||
Recognition of derivative warrant liabilities | 10,083,230 | ||
Fair value of agent's warrants | 185,738 | ||
Derivative warrant liability reclassified to reserves | 3,506,565 | ||
Derivative warrant liability reclassified to share capital on exercise of warrants | $ 338,689 | ||
Recognition of right-of-use asset | $ 114,588 |
Nature of operations
Nature of operations | 12 Months Ended |
Dec. 31, 2023 | |
Nature of operations | |
Nature of operations | 1. Nature of operations XORTX Therapeutics Inc. (the “Company” or “XORTX”) was incorporated under the laws of Alberta, Canada on August 24, 2012. XORTX is a public company listed on the TSX Venture Exchange (the “TSXV”) and on the Nasdaq Stock Market (“Nasdaq”) under the symbol “XRTX”. The Company’s operations and mailing address is 3710 – 33 rd XORTX is a late stage clinical pharmaceutical company focused on developing innovative therapies to treat progressive kidney disease modulated by aberrant purine and uric acid metabolism in orphan disease indications such as autosomal dominant polycystic kidney disease, as well as more prevalent type 2 diabetic nephropathy, and fatty liver disease. The Company’s current focus is on developing products to slow and/or reverse the progression of kidney disease in patients at risk of end stage kidney failure. The Company is subject to a number of risks associated with the successful development of new products and their marketing and the conduct of its clinical studies and their results. The Company will have to finance its research and development activities and its clinical studies. To achieve the objectives in its business plan, the Company plans to raise the necessary capital and to generate revenues. Although there is no certainty, management is of the opinion that additional funding for future projects and operations can be raised as needed. The products developed by the Company will require approval from the U.S. Food and Drug Administration and equivalent organizations in other countries before their sale can be authorized. If the Company is unsuccessful in obtaining adequate financing in the future, research activities will be postponed until market conditions improve. |
Basis of preparation
Basis of preparation | 12 Months Ended |
Dec. 31, 2023 | |
Basis of preparation. | |
Basis of preparation | 2. Basis of preparation Statement of Compliance These consolidated financial statements have been prepared in accordance with International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board (“IASB”). Basis of Measurement and Presentation These consolidated financial statements have been prepared using the historical cost convention except for financial instruments which have been measured at fair value. These consolidated financial statements were prepared on an accrual basis except for cash flow information. These consolidated financial statements incorporate the financial statements of the Company and its 100% owned subsidiary. The accounts of the Company’s subsidiary are prepared for the same reporting period as the parent company, using consistent accounting policies. Inter-company transactions, balances and unrealized gains or losses on transactions are eliminated. The Company’s subsidiary is the following: Name Place of Incorporation Ownership XORTX Pharma Corp. Canada 100% These consolidated financial statements were approved for issue by the Board of Directors on April 1, 2024. Change in functional and presentation currency Determination of functional currency may involve certain judgments to determine the primary economic environment, and management reconsiders the functional currency of the Company and its subsidiary if there is a change in events and conditions which determine the primary economic environment. The Company had determined that the functional currency of the Company’s Canadian operations has changed from Canadian dollars (“CAD”) to United States dollars (“USD”) as the primary economic environment for the Company changed due to changing sources of recent and expected future sources of financing. The change in functional currency from CAD to USD is accounted for prospectively from January 1, 2023. 2. Basis of preparation (continued) Change in functional and presentation currency (continued) Concurrent with the change in functional currency, the Company has also changed its presentation currency from CAD to USD. This change in presentation currency is to better reflect the Company’s business activities, following its increased presence in the United States and to be consistent with peer companies in the industry. Under International Accounting Standards (“IAS”) 8 Accounting Policies, Changes in Accounting Estimates and Errors Prior period comparable information has been restated to reflect the change in presentation currency. All revenues and expenses were translated into USD at the average exchange rate, with no adjustments to the measurement of or accounting for previously reported results. The exchange rates used to reflect the change in presentation currency were as follows: CAD – USD exchange rate 2022 2021 Closing rate 0.7383 0.7888 Average rate 0.7692 0.7980 Foreign currency transactions are translated into the functional currency using exchange rates in effect at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are translated using the exchange rate in effect at the measurement date. Non-monetary assets and liabilities denominated in foreign currencies are translated using the historical exchange rate or the exchange rate in effect at the measurement date for items recognized at fair value through profit and loss. Gains and losses arising from foreign exchange are included in profit and loss. The following is a summary of amounts restated into USD: Consolidated Statements of Financial Position December 31, 2022 January 1, 2022 As reported, CAD Restated, USD As reported, CAD Restated, USD Total current assets $ 14,750,412 $ 10,895,568 $ 20,173,339 $ 15,912,730 Total assets $ 16,752,929 $ 12,374,026 $ 22,035,902 $ 17,381,920 Total current liabilities $ 2,050,262 $ 1,511,303 $ 700,999 $ 552,948 Total liabilities $ 7,286,499 $ 5,377,215 $ 5,298,331 $ 4,179,323 Total shareholders’ equity $ 9,466,430 $ 6,996,811 $ 16,737,571 $ 13,202,597 Consolidated Statements of Comprehensive Loss Year ended December 31, 2022 Year ended December 31, 2021 As reported, CAD Restated, USD As reported, CAD Restated, USD Loss before other items $ (13,385,051) $ (10,290,606) $ (3,649,523) $ (2,910,605) Net loss $ (9,485,309) $ (7,718,882) $ (1,652,282) $ (1,579,274) Net loss and comprehensive Loss $ (9,485,309) $ (7,847,027) $ (1,652,282) $ (1,428,810) Basic and diluted loss per common share $ (6.41) $ (5.22) $ (1.51) $ (1.44) 2. Basis of preparation (continued) Change in functional and presentation currency (continued) Consolidated Statements of Cash Flows Year ended December 31, 2022 Year ended December 31, 2021 As reported, CAD Restated, USD As reported, CAD Restated, USD Cash used in operating activities $ (11,973,226) $ (8,963,557) $ (6,062,510) $ (4,801,045) Cash used in investing activities $ (60,016) $ (45,701) $ (39,809) $ (31,807) Cash provided by financing activities $ 6,435,884 $ 4,709,739 $ 24,456,551 $ 19,372,334 Effect of foreign exchange on cash $ 871,636 $ (136,147) $ 325,741 $ 195,863 Net (decrease) increase in cash $ (4,725,722) $ (4,435,665) $ 18,679,973 $ 14,735,345 Cash beginning of year $ 18,851,244 $ 14,869,861 $ 171,271 $ 134,516 Cash end of year $ 14,125,522 $ 10,434,196 $ 18,851,244 $ 14,869,861 |
Material Accounting policies
Material Accounting policies | 12 Months Ended |
Dec. 31, 2023 | |
Material Accounting policies | |
Material Accounting policies | 3. Material Accounting policies These consolidated financial statements have been prepared using the following accounting policies: Financial Instruments a) Classification The Company classifies its financial instruments in the following categories: at fair value through profit or loss (“FVTPL”), at fair value through other comprehensive income (loss) (“FVTOCI”), or at amortized cost. The Company determines the classification of financial assets at initial recognition. The classification of debt instruments is driven by the Company’s business model for managing the financial assets and their contractual cash flow characteristics. Equity instruments that are held for trading are classified as FVTPL. For other equity instruments, on the day of acquisition the Company can make an irrevocable election (on an instrument-by-instrument basis) to designate them as at FVTOCI. Financial liabilities are measured at amortized cost, unless they are required to be measured at FVTPL (such as instruments held for trading or derivatives) or if the Company has opted to measure them at FVTPL. The following are the Company’s financial instruments as at December 31, 2023 and 2022 and January 1, 2022: Classification Cash FVTPL Accounts payable and accrued liabilities Amortized cost Derivative warrant liability FVTPL Lease obligations Amortized cost b) Measurement Financial assets at FVTOCI Elected investments in equity instruments at FVTOCI are initially recognized at fair value plus transaction costs. Subsequently they are measured at fair value, with gains and losses recognized in other comprehensive income (loss). 3. Material Accounting policies (continued) b) 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 using the effective interest rate, 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 the consolidated statements of comprehensive loss. Realized and unrealized gains and losses arising from changes in the fair value of the financial assets and liabilities held at FVTPL are included in the consolidated statements of comprehensive loss in the period in which they arise. Where management has opted to recognize a financial liability at FVTPL, any changes associated with the Company’s own credit risk will be recognized in other comprehensive loss. c) Impairment of financial assets at amortized cost The Company recognizes a loss allowance for expected credit losses on financial assets that are measured at amortized cost. At each reporting date, the Company measures the loss allowance for the financial asset at an amount equal to the lifetime expected credit losses if the credit risk on the financial asset has increased significantly since initial recognition. If at the reporting date, the financial asset has not increased significantly since initial recognition, the Company measures the loss allowance for the financial asset at an amount equal to the twelve month expected credit losses. The Company shall recognize in the consolidated statements of comprehensive loss, as an impairment gain or loss, the amount of expected credit losses (or reversal) that is required to adjust the loss allowance at the reporting date to the amount that is required to be recognized. d) 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. However, gains and losses on derecognition of financial assets classified as FVTOCI remain within accumulated other comprehensive income (loss). Financial liabilities The Company derecognizes financial liabilities only when its obligations under the financial liabilities are discharged, cancelled or expired. Generally, the difference between the carrying amount of the financial liability derecognized and the consideration paid and payable, including any non-cash assets, is recognized in the consolidated statements of comprehensive loss. Cash Cash includes cash on hand, held at banks, or held with investment brokers as well as short-term investments with an original maturity of 90 days or less, which are readily convertible into known amounts of cash. 3. d) Equipment Equipment is recorded at cost less accumulated amortization and accumulated impairment losses. The cost of an item of equipment includes expenditures that are directly attributable to the acquisition thereof. Amortization is calculated on bases and rates designed to amortize the cost of the assets over their estimated useful lives. Amortization is recorded using the straight-line method with an expectation of the following useful life estimates: Computer equipment Leases At inception of a contract, the Company assesses whether a contract is, or contains, a lease determining whether the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. To assess whether a contract conveys the right to control the use of an identified asset, we assess whether: ● The contract involves the use of an identified asset; ● The Company has the right to obtain substantially all of the economic benefits from use of the identified asset throughout the period of use; and ● The Company has the right to direct the use of the identified asset. The right-of-use asset and corresponding lease obligation is recognized at the lease commencement date. The right-of-use asset is initially measured at cost, which comprises the initial amount of the lease obligation adjusted for any lease payments made at or before the commencement date, plus any initial direct costs incurred and an estimate of costs to dismantle and remove the underlying asset or to restore the underlying asset or the site on which it is located, less any lease incentives received. The right-of-use asset is subsequently depreciated using the straight-line method from the commencement date to the end of the lease term or its useful life, whichever is shorter. The lease term includes periods covered by an option to extend if the Company is reasonably certain to exercise that option. In addition, the right-of-use asset is reduced by impairment losses and adjusted for certain remeasurements of the lease obligation, if any. The lease obligation is initially measured at the present value of the lease payments that are not paid at the commencement date. The lease payments are discounted using the implicit interest rate in the lease. If the rate cannot be readily determined, the Company’s incremental rate of borrowing is used. The lease obligation is subsequently measured at amortized cost using the effective interest method. The lease obligation is remeasured when there is a change in future lease payments arising from a change in an index or rate, if there is a change in our estimate of the amount expected to be payable under a residual value guarantee, if we change our assessment of whether we will exercise a purchase, extension or termination option, or if the underlying lease contract is amended. The Company has elected not to separate fixed non-lease components from lease components and instead account for each lease component and associated fixed non-lease components as a single lease component. The Company has elected not to recognize right-of-use assets and lease obligations for short-term leases that have a lease term of 12 months or less and for leases of low value assets. The lease payments associated with those leases are recognized as an expense on a straight-line basis over the lease term. Research and development costs Research costs including clinical trial costs are expensed as incurred, net of recoveries, until a drug product receives regulatory approval. Development costs that meet specific criteria related to technical, market, and financial feasibility will be capitalized. To date, all research and development costs have been expensed. 3. Intangible assets Intangible assets are measured at cost less accumulated amortization and accumulated impairment losses. Costs incurred for patents, patents pending and licenses are capitalized and amortized from the date of capitalization on a straight-line basis over the shorter of their respective remaining estimated lives or 20 years. Government assistance Amounts received or receivable resulting from government assistance programs, including grants and investment tax credits for research and development, are recognized where there is reasonable assurance that the amount of government assistance will be received and all attached conditions will be complied with. Investment tax credits relating to qualifying scientific research and experimental development expenditures that are recoverable are recognized as a reduction of expenses. Impairment of long-lived assets Intangible assets and equipment are tested for impairment when events or changes in circumstances indicate that the carrying amount may not be recoverable. For the purpose of measuring recoverable amounts, assets are grouped at the lowest levels for which there are separately identifiable cash flows (cash-generating units or CGUs). The recoverable amount is the higher of an asset’s fair value less costs to sell and value in use (being the present value of the expected future cash flows of the relevant asset or CGU). An impairment loss is recognized for the amount by which the asset’s carrying amount exceeds its recoverable amount. The Company evaluates impairment losses for potential reversals when events or circumstances warrant such consideration. Derivative warrant liabilities Derivative warrant liabilities issued in relation to equity offerings that fail to meet the definition of equity are classified as derivative liabilities and measured at fair value with changes in fair value recognized in profit or loss at each period end. In instances where units consisting of a common share and a warrant classified as a derivative liability are issued, the Company recognizes the unit as a compound financial instrument. In accordance with IAS 32 Financial Instruments: Presentation, when a compound instrument has been determined to contain a financial liability and an equity component, the fair value of the instrument is bifurcated by first determining the fair value of the liability, and then allocating any residual value to the equity instrument. The derivative warrants will ultimately be converted into the Company’s equity (common shares) when the warrants are exercised or will be extinguished on the expiry of the outstanding warrants and will not result in the outlay of any cash by the Company. Immediately prior to exercise, the warrants are remeasured at their intrinsic value (the intrinsic value being the share price at the date the warrant is exercised less the exercise price of the warrant), and this value is transferred to Share Capital on exercise. Any remaining fair value is recorded through profit or loss as part of the change in estimated fair value of the derivative warrant liabilities. The Company uses the Black-Scholes option pricing model to estimate fair value at each period end date. The key assumptions used in the model are described in Note 12 (g). Share-based payments The Company has a stock option plan that is described in Note 12 and grants share options to acquire common shares of the Company to directors, officers, employees, and consultants. Share-based payments to employees are measured at the fair value of the instruments granted. Share-based payments to non-employees are measured at the fair value of the goods or services received or the fair value of the equity instruments issued as calculated using the Black-Scholes option pricing model. The offset to the recorded expense is to reserves. Consideration received on the exercise of stock options is recorded as share capital and the recorded amount in reserves is transferred to share capital. 3. Share capital Common shares are classified as equity. Costs directly identifiable with share capital financing are charged against share capital. Share issuance costs incurred in advance of share subscriptions are recorded as deferred assets. Share issuance costs related to uncompleted share subscriptions are charged to operations in the period they are incurred. The Company’s common shares, pre-funded warrants, warrants (other than derivative warrants) and options are classified as equity instruments. Incremental costs directly related to the issue of new shares or options are shown in equity as a deduction from the proceeds. For equity offerings of units consisting of a common share and warrant, when both instruments are classified as equity, the Company allocates proceeds first to common shares based on the estimated fair value of the common shares at the time the units are issued, with any excess value allocated to warrants. From time to time in connection with private placements and other equity offerings, the Company issues compensatory warrants (“Finders’ Warrants”) or warrant units (“Finders’ Warrant Units”) to agents as commission for services. Awards of Finders’ Warrants and Finders’ Warrant Units are accounted for in accordance with the fair value method of accounting and result in share issue costs and a credit to reserves when Finders’ Warrants and Finders’ Warrant Units are issued. The fair value of Finders’ Warrants is measured using the Black-Scholes option pricing model and the fair value of the Finders’ Warrant Units is measured using the Geske compound option pricing model that requires the use of certain assumptions regarding the risk-free market interest rate, expected volatility in the price of the underlying stock, and expected life of the instruments. Earnings (loss) per common share Basic earnings (loss) per common share is computed by dividing the net income (loss) available to common shareholders by the weighted average number of common shares outstanding during the period and the diluted loss per share assumes that the outstanding vested stock options and share purchase warrants had been exercised at the beginning of the year. Diluted earnings per share reflect the potential dilution that could share in the earnings of an entity. In the periods where a net loss is incurred, potentially dilutive common shares are excluded from the loss per share calculation as the effect would be anti-dilutive and basic and diluted loss per common share are the same. In a profit year, the weighted average number of common shares outstanding used for the calculation of diluted earnings per share assumes that the proceeds to be received on the exercise of dilutive stock options and warrants are used to repurchase the common shares at the average price per period. Foreign currency translation The presentation and functional currency of the Company and its subsidiary is the U.S. dollar. Foreign currency transactions are translated into U.S. dollars using the exchange rates prevailing at the dates of the transactions. Monetary assets and liabilities denominated in foreign currencies are translated at the rate of exchange in effect as of the financial position date. Gains and losses are recognized in profit or loss on a current basis. Income taxes The Company uses the asset and liability method of accounting for income taxes. Under this method, deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using substantively enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. Deferred income tax assets also result from unused loss carry forwards, resource related pools and other deductions. A deferred tax asset is recognized for unused tax losses, tax credits and deductible temporary differences to the extent that it is probable that future taxable profits will be available against which they can be utilized. Deferred tax assets are reviewed at each reporting date and are reduced to the extent that it is no longer probable that the related tax benefit will be realized. |
Critical accounting judgments a
Critical accounting judgments and estimates | 12 Months Ended |
Dec. 31, 2023 | |
Critical accounting judgments and estimates | |
Critical accounting judgments and estimates | 4. The preparation of consolidated financial statements requires management to make judgments and estimates that affect the amounts reported in the consolidated financial statements and notes. By their nature, these judgments and estimates are subject to change and the effect on the consolidated financial statements of changes in such judgments and estimates in future periods could be material. These judgments and estimates are based on historical experience, current and future economic conditions, and other factors, including expectations of future events that are believed to be reasonable under the circumstances. Actual results could differ from these judgments and estimates. Revisions to accounting estimates are recognized in the period in which the estimate is revised and may affect both the period of revision and future periods. Information about critical accounting judgments in applying accounting policies that have the most significant risk of causing material adjustment to the carrying amounts of assets and liabilities recognized in the consolidated financial statements within the next financial year are discussed below: Share-based payment transactions and warrant liabilities The Company measures the cost of equity-settled transactions with employees by reference to the fair value of the equity instruments at the date at which they are granted. Warrants liabilities are accounted for as derivative liabilities as the proceeds from exercise are either not fixed, denominated in a currency other than the functional currency, or can be settled on a net basis, and therefore do not meet the fixed for fixed criteria. Estimating fair value for share-based transactions requires determining the most appropriate valuation model, which is dependent on the terms and conditions of the instrument. This estimate also requires determining the most appropriate inputs to the valuation model including the expected life of the share option or warrant, volatility and dividend yield and making assumptions about them. Classification of contract payments In concluding that contract payments are a non-current asset, management considered when future regulatory and clinical trial programs are anticipated to be completed. Management assessed that the future regulatory and clinical trial programs would not be completed within 12 months from period end and therefore classified contract payments as a non-current asset. Impairment of intangible assets Patents (obtained and pending) and licenses are reviewed for impairment at each financial reporting date. If, in the judgment of management, future economic benefits will not flow to the Company, then the Company will assess the recoverable value of the asset. If the carrying value is greater than the recoverable value, the asset will be impaired to the recoverable value. Determination of functional currency In concluding that the U.S. dollar is the functional currency of the Company and its subsidiary, management considered the currency that mainly influences the cost of providing goods and services in the primary economic environment in which each entity operates and the currency in which funds from financing are generated, or if there has been a change in events or conditions that determined the primary economic environment. 4. Treatment of research and development costs Costs to develop products are capitalized to the extent that the criteria for recognition as intangible assets in IAS 38 Intangible Assets are met. Those criteria require that the product is technically and economically feasible, the Company has the intention and ability to use the asset, and how the asset will generate future benefits. Management assessed the capitalization of development costs based on the attributes of the development project, perceived user needs, industry trends and expected future economic conditions. Management considers these factors in aggregate and applies significant judgment to determine whether the product is feasible. The Company has not capitalized any development costs as at December 31, 2023. Leases Value of right-of-use assets and lease obligations require judgement in determining lease terms such as extension options, determining whether a lease contract contains an identified asset to which the Company has the right to use substantially all of the economic benefits from the use of that asset and the incremental borrowing rate applied. The Company estimates the incremental borrowing rate based on the lease term, collateral assumptions and the economic environment in which the lease is denominated. Renewal options are only included if management is reasonably certain that the option will be renewed. Classification of pre-funded warrants Management applied judgment when determining the appropriate classification of pre-funded warrants included in unit offerings. Management considered the characteristics of derivative instruments and concluded that the pre-funded warrants should be classified as an equity instrument. Current and deferred taxes The measurement of income taxes payable and deferred income tax assets and liabilities requires management to make judgments in the interpretation and application of the relevant tax laws. Such differences may result in eventual tax payments differing from amounts accrued. Reported amounts for deferred tax assets and liabilities are based on management’s expectation for the timing and amounts of future taxable income or loss, as well as future taxation rates. Changes to these underlying estimates may result in changes to the carrying value, if any, of deferred income tax assets and liabilities. |
Cash
Cash | 12 Months Ended |
Dec. 31, 2023 | |
Cash. | |
Cash | 5. The Company’s cash consists of cash held and interest-bearing deposits with the Company’s bank and brokerage accounts. The current annual interest rate earned on these deposits is 5.15% (2022 – 3.90%). December 31, December 31, January 1, 2023 2022 2022 $ $ $ Cash 94,999 3,823,217 14,869,861 Interest-bearing deposits 3,352,666 6,610,979 — 3,447,665 10,434,196 14,869,861 |
Prepaid expenses
Prepaid expenses | 12 Months Ended |
Dec. 31, 2023 | |
Prepaid expenses. | |
Prepaid expenses | 6. The Company’s prepaid expenses relate to the following: December 31, December 31, January 1, 2023 2022 2022 $ $ $ Research and development — — 563,768 Insurance 204,302 238,365 348,167 Investor relations conferences and services 25,309 66,305 49,715 Consulting — 12,305 39,440 Administrative services and other 7,355 62,645 1,125 236,966 379,620 1,002,215 |
Contract payments
Contract payments | 12 Months Ended |
Dec. 31, 2023 | |
Contract payments. | |
Contract payments | 7. During the year ended December 31, 2020, the Company entered into an agreement with Prevail InfoWorks Inc. As part of the agreement, the Company paid $1,200,000 through the issuance of units in the private placement that closed February 28, 2020, to be applied to future regulatory and clinical trial programs. The 108,590 units issued were measured by reference to their fair value on the issuance date, which is equal to CAD $14.76 per unit. |
Intangible assets
Intangible assets | 12 Months Ended |
Dec. 31, 2023 | |
Intangible assets. | |
Intangible assets | 8. Cost Total $ Balance, December 31, 2021 287,905 Additions 26,005 Foreign currency translation adjustment (19,159) Balance, December 31, 2022 294,751 Additions 42,052 Balance, December 31, 2023 336,803 Accumulated amortization Total $ Balance, December 31, 2021 85,780 Amortization 17,077 Foreign currency translation adjustment (7,940) Balance, December 31, 2022 94,917 Amortization 66,632 Balance, December 31, 2023 161,549 Carrying values Total $ At January 1, 2022 202,125 At December 31, 2022 199,834 At December 31, 2023 175,254 8. The Company has licensed intellectual property from various third parties. The intangible assets relate solely to licensed intellectual property and there are no other classes of intangible assets. The intangible assets are as described below: a) The Company has licensed from a third party (the “ Licensor ” ), under patent rights purchase agreement dated July 9, 2013 and amended April 15, 2014, certain patents relating to allopurinol for the treatment of hypertension. The Company paid a total of $40,000 to the Licensor per the terms of the agreement. The Company will also pay the Licensor royalties on the cumulative net revenues from the sale or sublicense of the product covered under the patent license until the later of (i) the expiration of the last patent right covering the product; and (ii) the expiration of ten years from the date of the first commercial sales of a product. As of December 31, 2023, no royalties have been paid. b) In December 2012, the Company entered into an agreement to license certain intellectual property relating to the use of all uric acid lowering agents to improve the treatment of metabolic syndrome. Under this patent rights purchase agreement, between the Company and Dr. Richard Johnson and Dr. Takahiko Nakagawa (the “ Vendors ” ), the Company will pay the Vendors a royalty based on the cumulative net revenues from the sale or sublicense of the product covered under the licensed intellectual property until the later of (i) the expiration of the last patent right covering the product; and (ii) the expiration of 10 years from the date of the first commercial sales of a product. c) Pursuant to a license agreement dated October 9, 2012 as amended on June 23, 2014, between the Company and the University of Florida Research Foundation, Inc. ( “ UFRF ” ), the Company acquired the exclusive license to a patent that claims the use of any uric acid lowering agent to treat insulin resistance. The Company has paid or is obligated to pay UFRF the following: i) An annual license fee of $1,000 ; ii) Reimburse UFRF for United States and/or foreign costs associated with the maintenance of the licensed patents; iii) The issuance to UFRF of 180,397 shares of common stock of the Company ( 160,783 have been issued to UFRF as at December 31, 2023 and 2022. Remaining shares to be issued are included in obligation to issue shares ( $24,746 )); iv) Milestone payments of $500,000 upon receipt of FDA approval to market licensed product in the United States of America and $100,000 upon receipt of regulatory approval to market each licensed product in each of other jurisdictions; v) Royalty payments of up to 1.5% of net sales of products covered by the license until the later of (i) the expiration of any patent claims; or (ii) 10 years from the date of the first commercial sale of any covered product in each country. Following commencement of commercial sales, the Company will be subject to certain annual minimum royalty payments that will increase annually to a maximum of $100,000 per year. As at December 31, 2023, no royalties have been paid; and vi) UFRF is entitled to receive a royalty of 5% of amounts received from any sub-licensee that are not based directly on product sales, excluding payments received for research and development or purchases of the Company ’ s securities at not less than fair market value. No royalties have been paid to date. UFRF may terminate the agreement if the Company fails to meet the above specified milestones. |
Property and equipment
Property and equipment | 12 Months Ended |
Dec. 31, 2023 | |
Property and equipment | |
Property and equipment | 9. Right-of-use Cost asset Equipment Total $ $ $ Balance, December 31, 2021 — — — Additions 114,588 19,696 134,284 Foreign currency translation adjustment — (663) (663) Balance, December 31, 2022 114,588 19,033 133,621 Additions — 4,311 4,311 Balance, December 31, 2023 114,588 23,344 137,932 Right-of-use Accumulated amortization asset Equipment Total $ $ $ Balance, December 31, 2021 — — — Amortization 38,195 2,874 41,069 Foreign currency translation adjustment — (126) (126) Balance, December 31, 2022 38,195 2,748 40,943 Amortization 65,480 7,582 73,062 Balance, December 31, 2023 103,675 10,330 114,005 Right-of-use Carrying values asset Equipment Total $ $ $ At December 31, 2022 76,393 16,285 92,678 At December 31, 2023 10,913 13,014 23,927 The Company entered into an office lease during the year ended December 31, 2022 for which a right-of-use asset was recognized (Note 11). |
Accounts payable and accrued li
Accounts payable and accrued liabilities | 12 Months Ended |
Dec. 31, 2023 | |
Accounts payable and accrued liabilities. | |
Accounts payable and accrued liabilities | 10. December 31, December 31, January 1, 2023 2022 2022 $ $ $ Trade payables 195,814 1,293,807 323,961 Accrued liabilities 87,614 151,406 228,987 Total 283,428 1,445,213 552,948 |
Lease obligation
Lease obligation | 12 Months Ended |
Dec. 31, 2023 | |
Lease obligation | |
Lease obligation | 11. The Company has entered into an office lease expiring in 2024, with an imputed interest rate of 8% per annum. A reconciliation of the outstanding lease obligation as at December 31, 2023 is as follows: $ Balance, December 31, 2021 — Additions 114,588 Lease payments (36,989) Balance, December 31, 2022 77,599 Lease payments (66,089) Balance, December 31, 2023 11,510 The following is a schedule of the Company’s future minimum lease payments related to the office lease obligation: December 31, December 31, 2023 2022 $ $ 2023 — 69,769 2024 11,628 11,628 Total minimum lease payments 11,628 81,397 Less: imputed interest (118) (3,798) Total present value of minimum lease payments 11,510 77,599 Less: current portion (11,510) (66,090) Non-current portion — 11,509 |
Share capital and reserves
Share capital and reserves | 12 Months Ended |
Dec. 31, 2023 | |
Share capital and reserves | |
Share capital and reserves | 12. a) Unlimited common shares – 1,998,848 issued at December 31, 2023 (2022 – 1,670,071, 2021 – 1,443,293). On November 10, 2023, the shares of the Company were consolidated on a 9:1 basis. Common shares, options, warrants and per share amounts have been adjusted for the 9:1 share consolidation unless otherwise noted. b) Year ended December 31, 2023: On January 19, 2023, the Company issued 328,777 common shares for the exercise of pre-funded warrants at $0.0009 per share in the amount of $296. An amount of $531,885 was transferred from reserves to share capital as a result. Year ended December 31, 2022: On October 7, 2022, the Company closed a public offering of: (i) 155,555 common share units (“Common Share Units”) at a price of $9.00 per Common Share Unit, with each Common Share Unit consisting of one common share and one warrant (“Warrant”) to purchase one common share; and (ii) 400,000 pre-funded warrant units (“Pre-Funded Units”) at a price of $8.9991 per Pre-Funded Unit, with each Pre-Funded Unit consisting of one pre-funded warrant (“Pre-Funded Warrant”) to purchase one common share and one Warrant to purchase one common share. Aggregate gross proceeds amounted to $4,999,640. The Pre-Funded Warrants have an exercise price of $0.0009 per share, and will terminate once exercised in full. The Warrants are exercisable at an exercise price of $10.98 per share expiring five years from the date of issuance. The proceeds were allocated $3,714,757 to the derivative warrant liability (Note 12(g)) and the residual amounts of $359,868 and $925,015 were allocated to common shares and pre-funded warrants respectively. In connection with the public offering, the Company incurred issuance costs of $1,067,153 and issued 27,777 underwriters warrants with a fair value of $185,738. The costs were allocated between common shares and derivative warrant liability in proportion to their initial carrying amounts with $317,301 recorded as a reduction of equity and $917,357 recorded as transaction costs on derivative warrant liability and pre-funded warrants. On December 29, 2022, the Company issued 71,223 common shares for the exercise of Pre-Funded Warrants at $0.0009 per share in the amount of $64. An amount of $164,704 was transferred from reserves to share capital as a result. Year ended December 31, 2021: On February 9, 2021, the Company closed a private placement with the issuance of 231,743 units at a subscription price of CAD $26.415 per unit for gross proceeds of $4,785,935. Each unit comprised one common share and one common share purchase warrant. Each warrant entitles the holder, on exercise, to purchase one additional common share in the capital of the Company, at a price of CAD $42.30 for a period of five years from the issuance of the units, provided; however, that, if, at any time following the expiry of the statutory four month The proceeds were allocated $4,212,000 to the derivative warrant liability (Note 12(g)) and the residual $573,935 was allocated to common shares. 12. b) Year ended December 31, 2021 (continued): In connection with the private placement, the Company paid $135,158 in cash commissions, incurred additional issuance costs of $6,229 and issued 6,476 finders’ warrants with a fair value of $150,000 (Note 12(e)). Each finders’ warrant is exercisable into one common share at a price of CAD $42.30 and having the same expiry, acceleration and anti-dilution provisions as the warrants included in the private placement. The costs were allocated between common shares and derivative warrant liability in proportion to their initial carrying amounts with $32,394 recorded as a reduction of equity and $227,132 recorded as transaction costs on derivative warrant liability. On October 15, 2021, the Company listed its common shares on the Nasdaq Stock Market (“Nasdaq”) under the symbol “XRTX” and closed an underwritten public offering of 322,888 units (the “US IPO Offering”), with each unit consisting of one common share, no par value, and one warrant to purchase one common share at a public offering price of $37.17 per Unit, for gross proceeds of $12,001,780. The proceeds were allocated $5,998,000 to the derivative warrant liability (Note 12(g)) and the residual $7,467,772 was allocated to common shares. The warrants have an initial exercise price of $42.93 per share and have a term of five years. In addition, the Company granted the underwriters a 45-day option to purchase up to an additional 48,433 common shares and/or warrants to purchase up to an additional 48,433 common shares at the US IPO Offering price less the underwriting discounts. On October 15, 2021, the underwriter exercised its option to purchase additional warrants to purchase up to an additional 48,433 common shares. On November 8, 2021, the underwriter partially exercised its 45-day option for 39,444 common shares at $37.17 per share, resulting in additional gross proceeds to the Company of $1,466,150 which increased the US IPO Offering to 362,333 common shares and 371,322 warrants. In connection with the US IPO Offering, the Company incurred issuance costs of $1,814,673 and issued 16,144 finders’ warrants with a fair value of $292,842. The costs were allocated between common shares and derivative warrant liability in proportion to their initial carrying amounts with $1,104,238 recorded as a reduction of equity and $1,003,277 recorded as transaction costs on derivative warrant liability. The Company issued 5,678 common shares for the exercise of options in the amount of $66,502. A value of $51,783 was transferred from reserves to share capital as a result. The Company issued 72,398 common shares for the exercise of warrants in the amount of $2,273,043. A value of $23,566 was transferred from reserves to share capital and a value of $440,669 was transferred from the derivative warrant liability to share capital as a result. Pursuant to the terms of a consulting agreement, the Company issued 2,839 common shares with a fair value of $59,092 in exchange for services. 12. c) Diluted Weighted Average Number of Shares Outstanding Year ended December 31, December 31, 2023 2022 Basic weighted average shares outstanding 1,981,734 1,479,914 Effect of outstanding securities — — Diluted weighted average shares outstanding 1,981,734 1,479,914 During the years ended December 31, 2023, 2022 and 2021, the Company had a net loss; as such, the diluted loss per share calculation excludes any potential conversion of options and warrants that would decrease loss per share. d) A summary of the changes in warrants for the years ended December 31, 2023 and 2022 is presented below: Weighted Number of Average Warrants Exercise price Balance, December 31, 2021 569,655 $ 33.10 Granted – October 7, 2022 555,555 10.98 Balance, December 31, 2023 and 2022 1,125,210 $ 22.31 At December 31, 2023, the weighted average contractual remaining life of the unexercised warrants was 3.15 (2022 - 4.15) years. The following table summarizes information on warrants outstanding at December 31, 2023: Remaining Number Contractual Exercise Price Outstanding Expiry date Life CAD$42.26 198,333 February 9, 2026 2.11 years $42.93 270,211 October 15, 2026 2.79 years $10.53 101,111 October 15, 2026 2.79 years $10.98 555,555 October 7, 2027 3.77 years Total 1,125,210 3.15 years e) A summary of the changes in Pre-Funded Warrants for the years ended December 31, 2023 and 2022 is presented below: Weighted Number of Average Warrants Exercise price Balance, December 31, 2021 - — Granted – October 7, 2022 400,000 $ 0.0009 Exercised (71,223) $ 0.0009 Balance, December 31, 2022 328,777 $ 0.0009 Exercised (328,777) $ 0.0009 Balance, December 31, 2023 - — 12. f) A summary of the changes in finders’ and underwriters warrants for the years ended December 31, 2023 and 2022 is presented below: Weighted Number of Average Warrants Exercise price Balance, December 31, 2021 22,521 $ 39.61 Granted – October 7, 2022 27,777 10.98 Balance, December 31, 2023 and 2022 50,298 $ 23.89 At December 31, 2023, the weighted average contractual remaining life of the unexercised finders’ and underwriters warrant was 3.25 (2022 – 4.25) years. The following table summarizes information on finders’ and underwriters warrants outstanding at December 31, 2023: Remaining Number Contractual Exercise Price Outstanding Expiry date Life CAD$42.30 6,377 February 9, 2026 2.11 years $42.93 16,144 October 15, 2026 2.79 years $10.98 27,777 October 7, 2027 3.77 years Total 50,298 3.25 years The fair value of the underwriters warrants issued on October 7, 2022 was estimated at $185,738 on the date of grant using the Black-Scholes option pricing model with the following assumptions: expected life of 5.0 years; expected volatility of 100%; risk free rate of 3.66%; and expected dividend yield of 0%. The risk-free interest rate is the yield on zero-coupon Canadian Treasury Bills of a term consistent with the assumed option life. The expected life of the option is the average expected period to exercise. Volatility is based on available historical volatility of the Company’s share price, excluding specific time frames in which volatility was affected by specific transactions that are not considered to be indicative of the Company’s expected share price volatility. The Company has not declared dividends in the past. 12. g) The Company has an incentive Stock Option Plan (the “Plan”) for directors, officers, employees, and consultants, under which the Company may issue stock options to purchase common shares of the Company provided that the amount of incentive stock options which may be granted and outstanding under the Plan at any time shall not exceed 10% of the then issued and outstanding common shares of the Company. The fair value of stock options granted was estimated on the date of grant using the Black-Scholes option pricing model with the following data and assumptions: 2023 2022 Dividend yield Nil Nil Annualized volatility 100 % 100 % Risk-free interest rate 3.25 % 1.44%-3.32 % Expected life 5 years 5 years The risk-free interest rate is the yield on zero-coupon Canadian Treasury Bills of a term consistent with the assumed option life. The expected life of the option is the average expected period to exercise. Volatility is based on available historical volatility of the Company’s share price, excluding specific time frames in which volatility was affected by specific transactions that are not considered to be indicative of the Company’s expected share price volatility. The Company has not declared dividends in the past. Share-based payment expense recognized was $120,984 during the year ended December 31, 2023 (2022 - $487,940; 2021 - $396,423). Compensation during 2023 related to vesting of options issued in prior years. A summary of the changes in stock options for the years ended December 31, 2023 and 2022 is presented below: Weighted Number of Average Options Exercise price (CAD) Balance, December 31, 2021 67,332 $ 27.89 Granted – January 12, 2022 14,162 22.86 Granted – June 6, 2022 43,866 14.40 Granted – November 25, 2022 7,776 12.42 Expired (4,896) 28.67 Balance, December 31, 2022 128,240 $ 21.75 Granted – December 31, 2023 8,000 2.90 Expired (32,318) 33.65 Balance, December 31, 2023 103,922 $ 16.60 Vested and exercisable, December 31, 2023 89,872 $ 16.54 12. g) Stock Options (continued) The weighted average contractual remaining life of the unexercised options was 3.04 (2022 - 3.43) years. The following table summarizes information on stock options outstanding at December 31, 2023: Number Number Remaining Exercise Price (CAD) Outstanding Exercisable Expiry Date Contractual Life $14.76 14,669 14,669 June 23, 2025 1.48 years $25.38 1,419 1,419 August 27, 2025 1.66 years $29.61 6,624 6,624 January 11, 2026 2.03 years $16.92 2,366 2,366 May 12, 2026 2.36 years $21.69 4,732 3,811 July 14, 2026 2.54 years $22.86 8,085 8,085 December 21, 2026 2.98 years $22.86 11,940 7,628 January 12, 2027 3.04 years $14.40 40,533 35,265 June 6, 2027 3.43 years $12.42 5,554 2,005 November 25, 2027 3.90 years $2.90 8,000 8,000 December 31, 2028 5.00 years 103,922 89,872 h) During the years ended December 31, 2022 and 2021, the Company issued warrants which were recorded as derivative financial liabilities as the exercise price was denominated in a currency other than the functional currency of the Company and in certain situations allow the holder to exercise the warrants on a cashless basis and therefore may be settled other than by the exchange of a fixed amount of cash. Under the cashless exercise option, the holders of these warrants may elect to settle the warrants on a cashless basis if the common shares are not subject to an effective registration statement at the time the holder wishes to exercise them. A contract that may be settled by a single net payment (generally referred to as net cash settled or net equity settled) is a financial liability and not an equity instrument. These warrants are revalued at each reporting period and any gain or loss is recorded in profit or loss. The fair value of the warrants issued during the year ended December 31,2022 was estimated at $3,714,757 on the date of grant using the Black-Scholes option pricing model with the following assumptions: share price on date of grant of $9.09; exercise price of the warrant of $10.98; expected life of 5.0 years; expected volatility of 100%; risk free rate of 3.66%; and expected dividend yield of 0%. Effective January 1, 2023, with the change in functional currency of the Company to USD, the exercise price of warrants previously denominated in Canadian Dollars is now denominated in a currency different than the functional currency of the Company and therefore these warrants now meet the definition of a derivative warrant liability. Accordingly, all Canadian Dollar denominated warrants recorded as equity instruments on January 1, 2023, were reclassified to derivative financial liabilities at their estimated fair value as of that date. 12. h) The balance of the derivative warrant liabilities (level 3) is as follows: Balance at December 31, 2020 $ — Warrants issued February 9, 2021 4,212,000 Warrants exercised (335,950) Fair value reclassified to reserves (3,506,565) Warrants issued October 15, 2021 5,998,000 Fair value adjustment (2,636,391) Foreign currency translation adjustment (104,719) Balance at December 31, 2021 $ 3,626,375 Warrants issued October 7, 2022 3,714,757 Fair value adjustment (3,396,137) Foreign currency translation adjustment (90,592) Balance at December 31, 2022 $ 3,854,403 Reclassified from reserves 318,000 Fair value adjustment (3,641,403) Balance at December 31, 2023 $ 531,000 Significant weighted average assumptions used in determining the fair value of the derivative warrant liabilities at December 31, 2023 and December 31, 2022 are as follows: December 31, December 31, December 31, 2023 2022 2021 Share price $ 2.31 $ 7.29 $ 18.45 Risk-free interest rate 3.25% - 3.91 % 3.55 % 1.23 % Dividend yield 0 % 0 % 0 % Expected volatility 100 % 100 % 100 % Remaining term (in years) 2.1 - 3.8 3.8 - 4.8 4.8 The fair value is classified as level 3 as expected volatility is determined using historical volatility and is therefore not an observable input. i) The shares outstanding presented have been adjusted to reflect the effect of the 9:1 share consolidation that took place on November 10, 2023. Common shares, options, and warrants and per share amounts have been adjusted for the 9:1 share consolidation unless otherwise noted. As required by IAS 33, Earnings per Share |
Related party transactions
Related party transactions | 12 Months Ended |
Dec. 31, 2023 | |
Related party transactions | |
Related party transactions | 13. All related party transactions were measured at fair value. All amounts due from/payable to related parties are unsecured, non-interest bearing and have no fixed terms of repayment. During the year ended December 31, 2023, the Company incurred the following transactions with related parties: a) Wages and benefits and professional fees were paid or accrued to Allen Davidoff, the Chief Executive Officer ( “ CEO ” ), Amar Keshri, former Chief Financial Officer ( “ CFO ” ), and David MacDonald, former Chief Technology Officer ( “ CTO ” ) in the amount of $417,810 (2022 - $593,116 ; 2021 - $264,178 ). 13. b) Fees were paid or accrued to 1282803 Ontario Inc., a company owned by James Fairbairn, the Chief Financial Officer ( “ CFO “ )of the Company in the amount $76,201 (2022 - $nil ; 2021 - $46,962 ) c) Research and development fees were paid or accrued to Haworth Biopharmaceutical, a company owned by Stephen Haworth, the Chief Medical Officer ( “ CMO ” ) of the Company in the amount of $200,229 (2022 - $238,813 ; 2021 - $84,416 ). d) Consulting fees were paid or accrued to Stacy Evans, the Chief Business Officer ( “ CBO ” ) of the Company in the amount of $280,000 (2022 - $44,946 ; 2021 - $ nil ). e) Consulting fees were paid to Bruce Rowlands and Allan Williams, former directors of the Company in the amount of $ nil (2022 - $nil ; 2021 - $44,179 ). f) Consulting fees were paid to a private entity controlled by the spouse of the Company ’ s CEO in the amount of $nil (2022 - $3,512 ; 2021 - $ nil ). g) Directors ’ fees were paid or accrued to the directors of the Company in the amount of $182,675 (2022 - $127,053 ; 2021 - $33,492 ). The amount includes director fees payment of $133,967 for the year ended December 31, 2023 (2022 - $68,617 ; 2021 - $ nil ) to Anthony Giovinazzo, Chairman of the Company. h) As at December 31, 2023, $6,805 (2022 - $14,914 ) was payable to directors of the Company, $nil (2022 - $28,846 ) was accrued to the CEO of the Company for CEO services, $nil (2022 - $10,904 ) was accrued to the former CFO of the Company for CFO services, $14,631 (2022 - $nil ) was accrued to the CFO of the Company for CFO services, $8,000 (2022 - $50,000 ) was payable and accrued to the CMO of the Company for consulting services, and $15,000 (2022 - $25,000 ) was payable and accrued to the CBO of the Company for consulting services. The balances are unsecured, non-interest bearing, and have no fixed terms of repayment. i) Management and directors ’ compensation transactions for the years ended December 31, 2023, 2022 and 2021 are summarized as follows: Management Share-based Compensation Directors’ fees payments Total $ $ $ $ Year ended December 31, 2021 Directors and officers 442,932 51,820 276,436 771,188 Year ended December 31, 2022 Directors and officers 880,387 127,053 404,573 1,412,013 Year ended December 31, 2023 Directors and officers 974,240 182,675 77,779 1,234,694 |
Income taxes
Income taxes | 12 Months Ended |
Dec. 31, 2023 | |
Income taxes | |
Income taxes | 14. The income taxes shown in the consolidated statements of comprehensive loss differ from the amounts obtained by applying statutory rates to the loss before income taxes due to the following: 2023 2022 2021 $ $ $ Net loss for the year (2,158,000) (7,718,000) (1,579,000) Statutory tax rate 27 % 27 % 27 % Expected income tax recovery (583,000) (2,084,000) (426,000) Decrease to income tax recovery due to: Non-deductible permanent differences 45,000 131,000 108,000 Temporary differences (25,000) 276,000 447,000 (Over) under provided in prior years (559,000) (552,000) — Change in tax assets not recognized 1,122,000 2,229,000 (129,000) Income tax recovery — — — The significant components of the Company’s deferred tax assets are as follows: December 31, December 31, 2023 2022 $ $ Share issuance costs 229,000 485,000 Cumulative eligible capital 117,000 90,000 Operating losses carried forward 4,819,000 4,343,000 Total deferred tax assets 5,165,000 4,918,000 Deferred tax assets not recognized (5,165,000) (4,918,000) — — The realization of income tax benefits related to these deferred potential tax deductions is not probable. Accordingly, no deferred income tax assets have been recognized for accounting purposes. The Company has Canadian non-capital losses carried forward of approximately CAD $21,561,000 that may be available for tax purposes. The losses expire as follows: Expiry date $ 2032 44,000 2033 748,000 2034 325,000 2035 286,000 2036 365,000 2037 618,000 2038 1,089,000 2039 554,000 2040 1,116,000 2041 3,648,000 2042 9,634,000 2043 3,134,000 Total 21,561,000 |
Financial instruments and risk
Financial instruments and risk management | 12 Months Ended |
Dec. 31, 2023 | |
Financial instruments and risk management | |
Financial instruments and risk management | 15. The Company’s financial instruments consist of cash, accounts payable and accrued liabilities, lease obligation, and derivative warrant liability. The fair values of cash and accounts payable and accrued liabilities approximate their carrying values at December 31, 2023, due to their short-term nature. The lease liability is classified as level 2 in the fair value hierarchy as the fair value is determined based on market interest rates. 15. Financial instruments and risk management (continued) The following table presents the Company’s financial instruments, measured at fair value on the consolidated statements of financial position as at December 31, 2023 and 2022, and categorized into levels of the fair value hierarchy: December 31, 2023 December 31, 2022 Carrying Estimated Carrying Estimated Level Value Fair Value Value Fair Value FVTPL $ $ $ $ Cash 1 3,447,665 3,447,665 10,434,196 10,434,196 Financial liabilities at amortized cost Accounts payable and accrued liabilities 1 283,428 283,428 1,445,213 1,445,213 Lease liability 2 11,510 11,510 77,599 77,599 FVTPL Derivative warrant liability 3 531,000 531,000 3,854,403 3,854,403 There were no transfers for levels of change in the fair value measurements of financial instruments for the years ended December 31, 2023 and 2022. Risk management is carried out by the Company’s management team with guidance from the Board of Directors. The Company’s risk exposures and their impact on the Company’s financial instruments were as follows: a) Credit risk is the risk of financial loss to the Company if a customer of counterparty to a financial instrument fails to meet its obligations. The Company’s maximum exposure to credit risk at the financial position date under its financial instruments is summarized as follows: December 31, December 31, 2023 2022 $ $ Cash 3,447,665 10,434,196 All of the Company’s cash is held with major financial institutions in Canada and management believes the exposure to credit risk with such institutions is minimal. The Company considers the risk of material loss to be significantly mitigated due to the financial strength of the major financial institutions where cash is held. The Company has no exposure to the ongoing banking crisis. The Company’s maximum exposure to credit risk as at December 31, 2023 and 2022 is the carrying value of its financial assets. b) Liquidity risk is the risk that the Company will not be able to meet its obligations associated with financial liabilities. The Company has a planning and budgeting process in place by which it anticipates and determines the funds required to support normal operation requirements as well as the growth and development of its intellectual property portfolio. The Company’s financial assets are comprised of its cash, and the financial liabilities are comprised of its accounts payable and accrued liabilities, lease liability and derivative warrant liability. The contractual maturities of these financial liabilities as at December 31, 2023 and 2022 are summarized below: 15. Financial instruments and risk management (continued) b) Liquidity risk (continued) Payments due by period as of December 31, 2023 Between 3 Less than months and Total 3 months 1 year 1-3 years $ $ $ $ Accounts payable and accrued liabilities 283,428 283,428 — — Lease liability 11,510 11,510 — — 294,938 294,938 — — Payments due by period as of December 31, 2022 Between 3 Less than months and Total 3 months 1 year 1-3 years $ $ $ $ Accounts payable and accrued liabilities 1,445,213 1,445,213 — — Lease liability 77,599 16,064 50,026 11,509 1,522,812 1,461,277 50,026 11,509 c) i) Interest Rate Risk Interest rate risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate due to changes in market interest rates. The Company’s bank accounts bear interest. Management believes that the credit risk concentration with respect to financial instruments included in cash is minimal. ii) Foreign Currency Risk As at December 31, 2023, the Company is exposed to currency risk on the following financial assets and liabilities denominated in CAD Dollars (“CAD”), British Pounds (“GBP”), and European Euro (“EUR”). The sensitivity of the Company’s net earnings due to changes in the exchange rate between the CAD, GBP and EUR against the U.S.dollar is included in the table below in U.S. dollar equivalents: CAD GBP amount EUR Total $ $ $ $ Cash 36,627 — — 36,627 Accounts payable and accrued liabilities (173,068) — — (173,068) Net exposure (136,441) — — (136,441) Effect of +/- 10% change in currency (13,644) — — — The Company thoroughly examines the various financial instruments and risks to which it is exposed and assesses the impact and likelihood of those risks. These risks include foreign currency risk, interest rate risk, market risk, credit risk, and liquidity risk. Where material, these risks are reviewed and monitored by the Board of Directors There have been no changes in any risk management policies since December 31, 2023. |
Capital management
Capital management | 12 Months Ended |
Dec. 31, 2023 | |
Capital management | |
Capital management | 16. The Company defines capital that it manages as shareholders’ equity. The Company manages its capital structure in order to have funds available to support its research and development and sustain the future development of the business. When managing capital, the Company’s objective is to ensure the entity continues as a going concern as well as to maintain optimal returns to shareholders and benefits for other stakeholders. Management adjusts the capital structure as necessary in order to support its activities. Since inception, the Company’s objective in managing capital is to ensure sufficient liquidity to finance its research and development activities, general and administrative expenses, expenses associated with intellectual property protection, and its overall capital expenditures. There were no changes during the year ended December 31, 2023. The Company is not exposed to external requirements by regulatory agencies regarding its capital. |
Commitments
Commitments | 12 Months Ended |
Dec. 31, 2023 | |
Commitments | |
Commitments | 17. The Company has long-term arrangements with commitments that are not recognized as liabilities as at December 31, 2023 and December 31, 2022 are as follows: a) Employment Agreements December 31, December 31, 2023 2022 $ $ Management services – officers 321,000 441,754 1 1 The President, CEO, and a director of the Company has a long-term employment agreement with the Company. The agreement has a termination clause whereby he is entitled to the equivalent of 12 times his then current monthly salary which, as of December 31, 2023 and 2022, equated to an annual salary of $321,000 and $300,000 respectively. b) Payments In the normal course of business, the Company has committed to payments totaling $446,000 (December 31,2022 - $1,994,232) for activities related to its clinical trial, manufacturing, collaboration programs, and other regular business activities which are expected to occur over the next two years. |
Segmented information
Segmented information | 12 Months Ended |
Dec. 31, 2023 | |
Segmented information | |
Segmented information | 18. The Company operates in one reportable operating segment, being the development and commercialization of therapies to treat progressive kidney disease. As the operations comprise a single reporting segment, amounts disclosed also represent segment amounts. All long-term assets of the Company are located in Canada. |
Subsequent events
Subsequent events | 12 Months Ended |
Dec. 31, 2023 | |
Subsequent events | |
Subsequent events | 19. On February 15 and March 4, 2024, the Company closed two tranches of a non-brokered offering of 899,717 common share units (“Common Share Units”) at a price of $3 per Common Share Unit for aggregate gross proceeds of $2,699,151. Each Common Share Unit consists of one common share and one warrant (“Warrant”) to purchase one common share at $4.50 per common share for a period of two years. The Warrants will be immediately exercisable, and may be exercised for two years from the date of issuance, provided, however that, if, the common shares on the TSX Venture Exchange trade at greater than $6.00 for 10 or more consecutive trading days, the Warrants will be accelerated and the Warrants will expire on the 30 th 19. In connection with the offering, the Company paid finder’s fees of CAD $132,551, representing a 5% finder’s fee on certain subscriptions to qualified finders, a portion of which was recognized as deferred share issuance costs as at December 31, 2023. On March 4, 2024, the Company issued an aggregate of 39,483 options to purchase common shares of the Company to directors, officers, employees, and consultants in accordance with the Company’s stock option plan. The options are exercisable at a price of CAD $4.50 per common share and expire five years from the date of grant. On March 11, 2024, the Company proposed to amend the terms of an aggregate of 1,074,397 outstanding common share purchase warrants by amending the exercise price to $5.00 per share. Of the warrants, 204,710 were issued pursuant in a private placement that closed in February 2021. The warrants had an original exercise price of $42.26 per share. The Company intends to amend the exercise price from $42.26 to $5.00. Of the warrants, 286,355 were issued pursuant to a private placement that closed in October 2021. The warrants had an original exercise price of $42.93 per share. The Company intends to amend the exercise price from $42.93 to $5.00. Of the warrants, 583,332 were issued pursuant to a private placement that closed in October 2022. The warrants had an original exercise price of $10.98 per share. The Company intends to amend the exercise price from $10.98 to $5.00. Pursuant to the polices of the TSX Venture Exchange the terms of the warrants, as amended, will be subject to an acceleration expiry provision such that if for any 10 consecutive trading dates during the unexpired term of the warrants, the closing price of the Company’s shares on the exchange exceeds $6.50, the exercise period of the warrants will be reduced to 30 days, starting seven days after the last premium trading day. The Company will announce any such accelerated expiry date by press release. All other terms of the warrants remain unchanged. The amendments described above are subject to acceptance by the holders of the warrants and the approval of the exchange. |
Material Accounting policies (P
Material Accounting policies (Policies) | 12 Months Ended |
Dec. 31, 2023 | |
Material Accounting policies | |
Classification | a) Classification The Company classifies its financial instruments in the following categories: at fair value through profit or loss (“FVTPL”), at fair value through other comprehensive income (loss) (“FVTOCI”), or at amortized cost. The Company determines the classification of financial assets at initial recognition. The classification of debt instruments is driven by the Company’s business model for managing the financial assets and their contractual cash flow characteristics. Equity instruments that are held for trading are classified as FVTPL. For other equity instruments, on the day of acquisition the Company can make an irrevocable election (on an instrument-by-instrument basis) to designate them as at FVTOCI. Financial liabilities are measured at amortized cost, unless they are required to be measured at FVTPL (such as instruments held for trading or derivatives) or if the Company has opted to measure them at FVTPL. The following are the Company’s financial instruments as at December 31, 2023 and 2022 and January 1, 2022: Classification Cash FVTPL Accounts payable and accrued liabilities Amortized cost Derivative warrant liability FVTPL Lease obligations Amortized cost |
Measurement | b) Measurement Financial assets at FVTOCI Elected investments in equity instruments at FVTOCI are initially recognized at fair value plus transaction costs. Subsequently they are measured at fair value, with gains and losses recognized in other comprehensive income (loss). 3. Material Accounting policies (continued) b) 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 using the effective interest rate, 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 the consolidated statements of comprehensive loss. Realized and unrealized gains and losses arising from changes in the fair value of the financial assets and liabilities held at FVTPL are included in the consolidated statements of comprehensive loss in the period in which they arise. Where management has opted to recognize a financial liability at FVTPL, any changes associated with the Company’s own credit risk will be recognized in other comprehensive loss. |
Impairment of financial assets at amortized cost | c) Impairment of financial assets at amortized cost The Company recognizes a loss allowance for expected credit losses on financial assets that are measured at amortized cost. At each reporting date, the Company measures the loss allowance for the financial asset at an amount equal to the lifetime expected credit losses if the credit risk on the financial asset has increased significantly since initial recognition. If at the reporting date, the financial asset has not increased significantly since initial recognition, the Company measures the loss allowance for the financial asset at an amount equal to the twelve month expected credit losses. The Company shall recognize in the consolidated statements of comprehensive loss, as an impairment gain or loss, the amount of expected credit losses (or reversal) that is required to adjust the loss allowance at the reporting date to the amount that is required to be recognized. |
Derecognition | d) 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. However, gains and losses on derecognition of financial assets classified as FVTOCI remain within accumulated other comprehensive income (loss). Financial liabilities The Company derecognizes financial liabilities only when its obligations under the financial liabilities are discharged, cancelled or expired. Generally, the difference between the carrying amount of the financial liability derecognized and the consideration paid and payable, including any non-cash assets, is recognized in the consolidated statements of comprehensive loss. Cash Cash includes cash on hand, held at banks, or held with investment brokers as well as short-term investments with an original maturity of 90 days or less, which are readily convertible into known amounts of cash. 3. d) Equipment Equipment is recorded at cost less accumulated amortization and accumulated impairment losses. The cost of an item of equipment includes expenditures that are directly attributable to the acquisition thereof. Amortization is calculated on bases and rates designed to amortize the cost of the assets over their estimated useful lives. Amortization is recorded using the straight-line method with an expectation of the following useful life estimates: Computer equipment Leases At inception of a contract, the Company assesses whether a contract is, or contains, a lease determining whether the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. To assess whether a contract conveys the right to control the use of an identified asset, we assess whether: ● The contract involves the use of an identified asset; ● The Company has the right to obtain substantially all of the economic benefits from use of the identified asset throughout the period of use; and ● The Company has the right to direct the use of the identified asset. The right-of-use asset and corresponding lease obligation is recognized at the lease commencement date. The right-of-use asset is initially measured at cost, which comprises the initial amount of the lease obligation adjusted for any lease payments made at or before the commencement date, plus any initial direct costs incurred and an estimate of costs to dismantle and remove the underlying asset or to restore the underlying asset or the site on which it is located, less any lease incentives received. The right-of-use asset is subsequently depreciated using the straight-line method from the commencement date to the end of the lease term or its useful life, whichever is shorter. The lease term includes periods covered by an option to extend if the Company is reasonably certain to exercise that option. In addition, the right-of-use asset is reduced by impairment losses and adjusted for certain remeasurements of the lease obligation, if any. The lease obligation is initially measured at the present value of the lease payments that are not paid at the commencement date. The lease payments are discounted using the implicit interest rate in the lease. If the rate cannot be readily determined, the Company’s incremental rate of borrowing is used. The lease obligation is subsequently measured at amortized cost using the effective interest method. The lease obligation is remeasured when there is a change in future lease payments arising from a change in an index or rate, if there is a change in our estimate of the amount expected to be payable under a residual value guarantee, if we change our assessment of whether we will exercise a purchase, extension or termination option, or if the underlying lease contract is amended. The Company has elected not to separate fixed non-lease components from lease components and instead account for each lease component and associated fixed non-lease components as a single lease component. The Company has elected not to recognize right-of-use assets and lease obligations for short-term leases that have a lease term of 12 months or less and for leases of low value assets. The lease payments associated with those leases are recognized as an expense on a straight-line basis over the lease term. Research and development costs Research costs including clinical trial costs are expensed as incurred, net of recoveries, until a drug product receives regulatory approval. Development costs that meet specific criteria related to technical, market, and financial feasibility will be capitalized. To date, all research and development costs have been expensed. 3. Intangible assets Intangible assets are measured at cost less accumulated amortization and accumulated impairment losses. Costs incurred for patents, patents pending and licenses are capitalized and amortized from the date of capitalization on a straight-line basis over the shorter of their respective remaining estimated lives or 20 years. Government assistance Amounts received or receivable resulting from government assistance programs, including grants and investment tax credits for research and development, are recognized where there is reasonable assurance that the amount of government assistance will be received and all attached conditions will be complied with. Investment tax credits relating to qualifying scientific research and experimental development expenditures that are recoverable are recognized as a reduction of expenses. Impairment of long-lived assets Intangible assets and equipment are tested for impairment when events or changes in circumstances indicate that the carrying amount may not be recoverable. For the purpose of measuring recoverable amounts, assets are grouped at the lowest levels for which there are separately identifiable cash flows (cash-generating units or CGUs). The recoverable amount is the higher of an asset’s fair value less costs to sell and value in use (being the present value of the expected future cash flows of the relevant asset or CGU). An impairment loss is recognized for the amount by which the asset’s carrying amount exceeds its recoverable amount. The Company evaluates impairment losses for potential reversals when events or circumstances warrant such consideration. Derivative warrant liabilities Derivative warrant liabilities issued in relation to equity offerings that fail to meet the definition of equity are classified as derivative liabilities and measured at fair value with changes in fair value recognized in profit or loss at each period end. In instances where units consisting of a common share and a warrant classified as a derivative liability are issued, the Company recognizes the unit as a compound financial instrument. In accordance with IAS 32 Financial Instruments: Presentation, when a compound instrument has been determined to contain a financial liability and an equity component, the fair value of the instrument is bifurcated by first determining the fair value of the liability, and then allocating any residual value to the equity instrument. The derivative warrants will ultimately be converted into the Company’s equity (common shares) when the warrants are exercised or will be extinguished on the expiry of the outstanding warrants and will not result in the outlay of any cash by the Company. Immediately prior to exercise, the warrants are remeasured at their intrinsic value (the intrinsic value being the share price at the date the warrant is exercised less the exercise price of the warrant), and this value is transferred to Share Capital on exercise. Any remaining fair value is recorded through profit or loss as part of the change in estimated fair value of the derivative warrant liabilities. The Company uses the Black-Scholes option pricing model to estimate fair value at each period end date. The key assumptions used in the model are described in Note 12 (g). Share-based payments The Company has a stock option plan that is described in Note 12 and grants share options to acquire common shares of the Company to directors, officers, employees, and consultants. Share-based payments to employees are measured at the fair value of the instruments granted. Share-based payments to non-employees are measured at the fair value of the goods or services received or the fair value of the equity instruments issued as calculated using the Black-Scholes option pricing model. The offset to the recorded expense is to reserves. Consideration received on the exercise of stock options is recorded as share capital and the recorded amount in reserves is transferred to share capital. 3. Share capital Common shares are classified as equity. Costs directly identifiable with share capital financing are charged against share capital. Share issuance costs incurred in advance of share subscriptions are recorded as deferred assets. Share issuance costs related to uncompleted share subscriptions are charged to operations in the period they are incurred. The Company’s common shares, pre-funded warrants, warrants (other than derivative warrants) and options are classified as equity instruments. Incremental costs directly related to the issue of new shares or options are shown in equity as a deduction from the proceeds. For equity offerings of units consisting of a common share and warrant, when both instruments are classified as equity, the Company allocates proceeds first to common shares based on the estimated fair value of the common shares at the time the units are issued, with any excess value allocated to warrants. From time to time in connection with private placements and other equity offerings, the Company issues compensatory warrants (“Finders’ Warrants”) or warrant units (“Finders’ Warrant Units”) to agents as commission for services. Awards of Finders’ Warrants and Finders’ Warrant Units are accounted for in accordance with the fair value method of accounting and result in share issue costs and a credit to reserves when Finders’ Warrants and Finders’ Warrant Units are issued. The fair value of Finders’ Warrants is measured using the Black-Scholes option pricing model and the fair value of the Finders’ Warrant Units is measured using the Geske compound option pricing model that requires the use of certain assumptions regarding the risk-free market interest rate, expected volatility in the price of the underlying stock, and expected life of the instruments. Earnings (loss) per common share Basic earnings (loss) per common share is computed by dividing the net income (loss) available to common shareholders by the weighted average number of common shares outstanding during the period and the diluted loss per share assumes that the outstanding vested stock options and share purchase warrants had been exercised at the beginning of the year. Diluted earnings per share reflect the potential dilution that could share in the earnings of an entity. In the periods where a net loss is incurred, potentially dilutive common shares are excluded from the loss per share calculation as the effect would be anti-dilutive and basic and diluted loss per common share are the same. In a profit year, the weighted average number of common shares outstanding used for the calculation of diluted earnings per share assumes that the proceeds to be received on the exercise of dilutive stock options and warrants are used to repurchase the common shares at the average price per period. Foreign currency translation The presentation and functional currency of the Company and its subsidiary is the U.S. dollar. Foreign currency transactions are translated into U.S. dollars using the exchange rates prevailing at the dates of the transactions. Monetary assets and liabilities denominated in foreign currencies are translated at the rate of exchange in effect as of the financial position date. Gains and losses are recognized in profit or loss on a current basis. Income taxes The Company uses the asset and liability method of accounting for income taxes. Under this method, deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using substantively enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. Deferred income tax assets also result from unused loss carry forwards, resource related pools and other deductions. A deferred tax asset is recognized for unused tax losses, tax credits and deductible temporary differences to the extent that it is probable that future taxable profits will be available against which they can be utilized. Deferred tax assets are reviewed at each reporting date and are reduced to the extent that it is no longer probable that the related tax benefit will be realized. |
Basis of preparation (Tables)
Basis of preparation (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Basis of preparation. | |
Schedule of company's subsidiary | Name Place of Incorporation Ownership XORTX Pharma Corp. Canada 100% |
Schedule of exchange rate | CAD – USD exchange rate 2022 2021 Closing rate 0.7383 0.7888 Average rate 0.7692 0.7980 |
Schedule of financial statement | December 31, 2022 January 1, 2022 As reported, CAD Restated, USD As reported, CAD Restated, USD Total current assets $ 14,750,412 $ 10,895,568 $ 20,173,339 $ 15,912,730 Total assets $ 16,752,929 $ 12,374,026 $ 22,035,902 $ 17,381,920 Total current liabilities $ 2,050,262 $ 1,511,303 $ 700,999 $ 552,948 Total liabilities $ 7,286,499 $ 5,377,215 $ 5,298,331 $ 4,179,323 Total shareholders’ equity $ 9,466,430 $ 6,996,811 $ 16,737,571 $ 13,202,597 Year ended December 31, 2022 Year ended December 31, 2021 As reported, CAD Restated, USD As reported, CAD Restated, USD Loss before other items $ (13,385,051) $ (10,290,606) $ (3,649,523) $ (2,910,605) Net loss $ (9,485,309) $ (7,718,882) $ (1,652,282) $ (1,579,274) Net loss and comprehensive Loss $ (9,485,309) $ (7,847,027) $ (1,652,282) $ (1,428,810) Basic and diluted loss per common share $ (6.41) $ (5.22) $ (1.51) $ (1.44) Year ended December 31, 2022 Year ended December 31, 2021 As reported, CAD Restated, USD As reported, CAD Restated, USD Cash used in operating activities $ (11,973,226) $ (8,963,557) $ (6,062,510) $ (4,801,045) Cash used in investing activities $ (60,016) $ (45,701) $ (39,809) $ (31,807) Cash provided by financing activities $ 6,435,884 $ 4,709,739 $ 24,456,551 $ 19,372,334 Effect of foreign exchange on cash $ 871,636 $ (136,147) $ 325,741 $ 195,863 Net (decrease) increase in cash $ (4,725,722) $ (4,435,665) $ 18,679,973 $ 14,735,345 Cash beginning of year $ 18,851,244 $ 14,869,861 $ 171,271 $ 134,516 Cash end of year $ 14,125,522 $ 10,434,196 $ 18,851,244 $ 14,869,861 |
Material Accounting policies (T
Material Accounting policies (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Material Accounting policies | |
Schedule of company's financial instrument | The following are the Company’s financial instruments as at December 31, 2023 and 2022 and January 1, 2022: Classification Cash FVTPL Accounts payable and accrued liabilities Amortized cost Derivative warrant liability FVTPL Lease obligations Amortized cost |
Cash (Tables)
Cash (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Cash. | |
Summary of cash | December 31, December 31, January 1, 2023 2022 2022 $ $ $ Cash 94,999 3,823,217 14,869,861 Interest-bearing deposits 3,352,666 6,610,979 — 3,447,665 10,434,196 14,869,861 |
Prepaid expenses (Tables)
Prepaid expenses (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Prepaid expenses. | |
Schedule of company's prepaid expenses | December 31, December 31, January 1, 2023 2022 2022 $ $ $ Research and development — — 563,768 Insurance 204,302 238,365 348,167 Investor relations conferences and services 25,309 66,305 49,715 Consulting — 12,305 39,440 Administrative services and other 7,355 62,645 1,125 236,966 379,620 1,002,215 |
Intangible assets (Tables)
Intangible assets (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Intangible assets. | |
Schedule of intangible assets | Cost Total $ Balance, December 31, 2021 287,905 Additions 26,005 Foreign currency translation adjustment (19,159) Balance, December 31, 2022 294,751 Additions 42,052 Balance, December 31, 2023 336,803 Accumulated amortization Total $ Balance, December 31, 2021 85,780 Amortization 17,077 Foreign currency translation adjustment (7,940) Balance, December 31, 2022 94,917 Amortization 66,632 Balance, December 31, 2023 161,549 Carrying values Total $ At January 1, 2022 202,125 At December 31, 2022 199,834 At December 31, 2023 175,254 |
Property and equipment (Tables)
Property and equipment (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Property and equipment | |
Schedule of property and equipment | Right-of-use Cost asset Equipment Total $ $ $ Balance, December 31, 2021 — — — Additions 114,588 19,696 134,284 Foreign currency translation adjustment — (663) (663) Balance, December 31, 2022 114,588 19,033 133,621 Additions — 4,311 4,311 Balance, December 31, 2023 114,588 23,344 137,932 Right-of-use Accumulated amortization asset Equipment Total $ $ $ Balance, December 31, 2021 — — — Amortization 38,195 2,874 41,069 Foreign currency translation adjustment — (126) (126) Balance, December 31, 2022 38,195 2,748 40,943 Amortization 65,480 7,582 73,062 Balance, December 31, 2023 103,675 10,330 114,005 Right-of-use Carrying values asset Equipment Total $ $ $ At December 31, 2022 76,393 16,285 92,678 At December 31, 2023 10,913 13,014 23,927 |
Accounts payable and accrued _2
Accounts payable and accrued liabilities (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Accounts payable and accrued liabilities. | |
Schedule of accounts payable and accrued liabilities | December 31, December 31, January 1, 2023 2022 2022 $ $ $ Trade payables 195,814 1,293,807 323,961 Accrued liabilities 87,614 151,406 228,987 Total 283,428 1,445,213 552,948 |
Lease obligation (Tables)
Lease obligation (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Lease obligation | |
Schedule of reconciliation of the outstanding lease obligation | $ Balance, December 31, 2021 — Additions 114,588 Lease payments (36,989) Balance, December 31, 2022 77,599 Lease payments (66,089) Balance, December 31, 2023 11,510 |
Schedule of future minimum lease payments related to the office lease obligation | December 31, December 31, 2023 2022 $ $ 2023 — 69,769 2024 11,628 11,628 Total minimum lease payments 11,628 81,397 Less: imputed interest (118) (3,798) Total present value of minimum lease payments 11,510 77,599 Less: current portion (11,510) (66,090) Non-current portion — 11,509 |
Share capital and reserves (Tab
Share capital and reserves (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Share capital and reserves | |
Summary of changes in warrants | Weighted Number of Average Warrants Exercise price Balance, December 31, 2021 569,655 $ 33.10 Granted – October 7, 2022 555,555 10.98 Balance, December 31, 2023 and 2022 1,125,210 $ 22.31 |
Schedule of information on warrants outstanding | The following table summarizes information on warrants outstanding at December 31, 2023: Remaining Number Contractual Exercise Price Outstanding Expiry date Life CAD$42.26 198,333 February 9, 2026 2.11 years $42.93 270,211 October 15, 2026 2.79 years $10.53 101,111 October 15, 2026 2.79 years $10.98 555,555 October 7, 2027 3.77 years Total 1,125,210 3.15 years |
Schedule of the changes in pre-funded warrants | Weighted Number of Average Warrants Exercise price Balance, December 31, 2021 - — Granted – October 7, 2022 400,000 $ 0.0009 Exercised (71,223) $ 0.0009 Balance, December 31, 2022 328,777 $ 0.0009 Exercised (328,777) $ 0.0009 Balance, December 31, 2023 - — |
Schedule of changes in finders' warrants | Weighted Number of Average Warrants Exercise price Balance, December 31, 2021 22,521 $ 39.61 Granted – October 7, 2022 27,777 10.98 Balance, December 31, 2023 and 2022 50,298 $ 23.89 |
Schedule of information on finders' warrants outstanding | The following table summarizes information on finders’ and underwriters warrants outstanding at December 31, 2023: Remaining Number Contractual Exercise Price Outstanding Expiry date Life CAD$42.30 6,377 February 9, 2026 2.11 years $42.93 16,144 October 15, 2026 2.79 years $10.98 27,777 October 7, 2027 3.77 years Total 50,298 3.25 years |
Schedule of fair value of stock options granted was estimated on the date of grant using the Black-Scholes mode | 2023 2022 Dividend yield Nil Nil Annualized volatility 100 % 100 % Risk-free interest rate 3.25 % 1.44%-3.32 % Expected life 5 years 5 years |
Schedule of the changes in stock options for the years | Weighted Number of Average Options Exercise price (CAD) Balance, December 31, 2021 67,332 $ 27.89 Granted – January 12, 2022 14,162 22.86 Granted – June 6, 2022 43,866 14.40 Granted – November 25, 2022 7,776 12.42 Expired (4,896) 28.67 Balance, December 31, 2022 128,240 $ 21.75 Granted – December 31, 2023 8,000 2.90 Expired (32,318) 33.65 Balance, December 31, 2023 103,922 $ 16.60 Vested and exercisable, December 31, 2023 89,872 $ 16.54 |
Schedule of information on stock options outstanding and contractual remaining life | The following table summarizes information on stock options outstanding at December 31, 2023: Number Number Remaining Exercise Price (CAD) Outstanding Exercisable Expiry Date Contractual Life $14.76 14,669 14,669 June 23, 2025 1.48 years $25.38 1,419 1,419 August 27, 2025 1.66 years $29.61 6,624 6,624 January 11, 2026 2.03 years $16.92 2,366 2,366 May 12, 2026 2.36 years $21.69 4,732 3,811 July 14, 2026 2.54 years $22.86 8,085 8,085 December 21, 2026 2.98 years $22.86 11,940 7,628 January 12, 2027 3.04 years $14.40 40,533 35,265 June 6, 2027 3.43 years $12.42 5,554 2,005 November 25, 2027 3.90 years $2.90 8,000 8,000 December 31, 2028 5.00 years 103,922 89,872 |
Schedule of the derivative warrant liabilities | Balance at December 31, 2020 $ — Warrants issued February 9, 2021 4,212,000 Warrants exercised (335,950) Fair value reclassified to reserves (3,506,565) Warrants issued October 15, 2021 5,998,000 Fair value adjustment (2,636,391) Foreign currency translation adjustment (104,719) Balance at December 31, 2021 $ 3,626,375 Warrants issued October 7, 2022 3,714,757 Fair value adjustment (3,396,137) Foreign currency translation adjustment (90,592) Balance at December 31, 2022 $ 3,854,403 Reclassified from reserves 318,000 Fair value adjustment (3,641,403) Balance at December 31, 2023 $ 531,000 |
Schedule of significant on assumptions used in determining the fair value of the derivative warrant liabilities | December 31, December 31, December 31, 2023 2022 2021 Share price $ 2.31 $ 7.29 $ 18.45 Risk-free interest rate 3.25% - 3.91 % 3.55 % 1.23 % Dividend yield 0 % 0 % 0 % Expected volatility 100 % 100 % 100 % Remaining term (in years) 2.1 - 3.8 3.8 - 4.8 4.8 |
Related party transactions (Tab
Related party transactions (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Related party transactions | |
Schedule of Management compensation transactions | Management Share-based Compensation Directors’ fees payments Total $ $ $ $ Year ended December 31, 2021 Directors and officers 442,932 51,820 276,436 771,188 Year ended December 31, 2022 Directors and officers 880,387 127,053 404,573 1,412,013 Year ended December 31, 2023 Directors and officers 974,240 182,675 77,779 1,234,694 |
Income taxes (Tables)
Income taxes (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Income taxes | |
Schedule of loss before income taxes | 2023 2022 2021 $ $ $ Net loss for the year (2,158,000) (7,718,000) (1,579,000) Statutory tax rate 27 % 27 % 27 % Expected income tax recovery (583,000) (2,084,000) (426,000) Decrease to income tax recovery due to: Non-deductible permanent differences 45,000 131,000 108,000 Temporary differences (25,000) 276,000 447,000 (Over) under provided in prior years (559,000) (552,000) — Change in tax assets not recognized 1,122,000 2,229,000 (129,000) Income tax recovery — — — |
Schedule of significant components of the Company's deferred tax assets | December 31, December 31, 2023 2022 $ $ Share issuance costs 229,000 485,000 Cumulative eligible capital 117,000 90,000 Operating losses carried forward 4,819,000 4,343,000 Total deferred tax assets 5,165,000 4,918,000 Deferred tax assets not recognized (5,165,000) (4,918,000) — — |
Schedule of losses expire | Expiry date $ 2032 44,000 2033 748,000 2034 325,000 2035 286,000 2036 365,000 2037 618,000 2038 1,089,000 2039 554,000 2040 1,116,000 2041 3,648,000 2042 9,634,000 2043 3,134,000 Total 21,561,000 |
Financial instruments and ris_2
Financial instruments and risk management (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Financial instruments and risk management | |
Schedule of financial instruments | December 31, 2023 December 31, 2022 Carrying Estimated Carrying Estimated Level Value Fair Value Value Fair Value FVTPL $ $ $ $ Cash 1 3,447,665 3,447,665 10,434,196 10,434,196 Financial liabilities at amortized cost Accounts payable and accrued liabilities 1 283,428 283,428 1,445,213 1,445,213 Lease liability 2 11,510 11,510 77,599 77,599 FVTPL Derivative warrant liability 3 531,000 531,000 3,854,403 3,854,403 |
Schedule of company's maximum exposure to credit risk | December 31, December 31, 2023 2022 $ $ Cash 3,447,665 10,434,196 |
Schedule of contractual maturities of these financial liabilities | Payments due by period as of December 31, 2023 Between 3 Less than months and Total 3 months 1 year 1-3 years $ $ $ $ Accounts payable and accrued liabilities 283,428 283,428 — — Lease liability 11,510 11,510 — — 294,938 294,938 — — Payments due by period as of December 31, 2022 Between 3 Less than months and Total 3 months 1 year 1-3 years $ $ $ $ Accounts payable and accrued liabilities 1,445,213 1,445,213 — — Lease liability 77,599 16,064 50,026 11,509 1,522,812 1,461,277 50,026 11,509 |
Schedule of the sensitivity of the Company's net earnings due to changes in the exchange rate between the USD, GBP and EUR against the Canadian dollar | CAD GBP amount EUR Total $ $ $ $ Cash 36,627 — — 36,627 Accounts payable and accrued liabilities (173,068) — — (173,068) Net exposure (136,441) — — (136,441) Effect of +/- 10% change in currency (13,644) — — — |
Commitments (Tables)
Commitments (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Commitments | |
Schedule of long-term arrangements with commitments that are not recognized as liabilities | December 31, December 31, 2023 2022 $ $ Management services – officers 321,000 441,754 1 1 |
Basis of preparation (Details)
Basis of preparation (Details) | 12 Months Ended |
Dec. 31, 2023 | |
Basis of preparation. | |
Ownership Percentage | 100% |
Basis of preparation - Exchange
Basis of preparation - Exchange rate (Details) - CAD ($) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Basis of preparation. | ||
Closing rate | 0.7383 | 0.7888 |
Average rate | 0.7692 | 0.7980 |
Basis of preparation - Consolid
Basis of preparation - Consolidated Statements of Financial Position (Details) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2022 CAD ($) | Jan. 01, 2022 USD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2021 CAD ($) |
Disclosure of initial application of standards or interpretations [line items] | ||||||
Total Current Assets | $ 4,068,783 | $ 10,895,568 | $ 15,912,730 | $ 15,912,730 | ||
Total Assets | 5,467,964 | 12,374,026 | 17,381,920 | 17,381,920 | ||
Total Current Liabilities | 294,938 | 1,511,303 | 552,948 | 552,948 | ||
Total Liabilities | 825,938 | 5,377,215 | 4,179,323 | 4,179,323 | ||
Total Shareholders' Equity | $ 4,642,026 | $ 6,996,811 | $ 13,202,597 | $ 13,202,597 | ||
As reported | ||||||
Disclosure of initial application of standards or interpretations [line items] | ||||||
Total Current Assets | $ 14,750,412 | $ 20,173,339 | ||||
Total Assets | 16,752,929 | 22,035,902 | ||||
Total Current Liabilities | 2,050,262 | 700,999 | ||||
Total Liabilities | 7,286,499 | 5,298,331 | ||||
Total Shareholders' Equity | $ 9,466,430 | $ 16,737,571 |
Basis of preparation - Consol_2
Basis of preparation - Consolidated Statements of Comprehensive Loss (Details) | 12 Months Ended | ||||
Dec. 31, 2023 USD ($) $ / shares | Dec. 31, 2022 USD ($) $ / shares | Dec. 31, 2022 CAD ($) $ / shares | Dec. 31, 2021 USD ($) $ / shares | Dec. 31, 2021 CAD ($) $ / shares | |
Disclosure of initial application of standards or interpretations [line items] | |||||
Loss before other items | $ (6,045,986) | $ (10,290,606) | $ (2,910,605) | ||
Net loss for the year | (2,158,065) | (7,718,882) | (1,579,274) | ||
Total comprehensive loss for the year | $ (2,158,065) | $ (7,847,027) | $ (1,428,810) | ||
Basic loss per common share | $ / shares | $ (1.09) | $ (5.22) | $ (1.44) | ||
Diluted loss per common share | $ / shares | $ (1.09) | $ (5.22) | $ (1.44) | ||
As reported | |||||
Disclosure of initial application of standards or interpretations [line items] | |||||
Loss before other items | $ (13,385,051) | $ (3,649,523) | |||
Net loss for the year | (9,485,309) | (1,652,282) | |||
Total comprehensive loss for the year | $ (9,485,309) | $ (1,652,282) | |||
Basic loss per common share | $ / shares | $ (6.41) | $ (1.51) | |||
Diluted loss per common share | $ / shares | $ (6.41) | $ (1.51) |
Basis of preparation - Consol_3
Basis of preparation - Consolidated Statements of Cash Flows (Details) | 12 Months Ended | ||||
Dec. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2022 CAD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2021 CAD ($) | |
Disclosure of initial application of standards or interpretations [line items] | |||||
Cash used in operating activities | $ (6,583,165) | $ (8,963,557) | $ (4,801,045) | ||
Cash used in investing activities | (46,363) | (45,701) | (31,807) | ||
Cash provided by financing activities | (361,044) | 4,709,739 | 19,372,334 | ||
Effect of foreign exchange on cash | 4,041 | 195,863 | |||
Net (decrease) increase in cash | (6,986,531) | (4,435,665) | 14,735,345 | ||
Cash, beginning of year | 10,434,196 | 14,869,861 | 134,516 | ||
Cash, end of year | $ 3,447,665 | $ 10,434,196 | $ 14,869,861 | ||
As reported | |||||
Disclosure of initial application of standards or interpretations [line items] | |||||
Cash used in operating activities | $ (11,973,226) | $ (6,062,510) | |||
Cash used in investing activities | (60,016) | (39,809) | |||
Cash provided by financing activities | 6,435,884 | 24,456,551 | |||
Effect of foreign exchange on cash | 871,636 | 325,741 | |||
Net (decrease) increase in cash | (4,725,722) | 18,679,973 | |||
Cash, beginning of year | 18,851,244 | 171,271 | |||
Cash, end of year | $ 14,125,522 | $ 18,851,244 |
Material Accounting policies (D
Material Accounting policies (Details) | 12 Months Ended |
Dec. 31, 2023 | |
Computer equipment | |
Accounting policies | |
Estimated lives of computer equipment (in years) | 3 years |
Intangible assets | |
Accounting policies | |
Estimated lives of intangible assets (in years) | 20 years |
Cash (Details)
Cash (Details) - USD ($) | 12 Months Ended | ||||
Dec. 31, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Cash. | |||||
Current annual interest rate earned on deposits | 5.15% | 3.90% | |||
Cash | $ 94,999 | $ 3,823,217 | $ 14,869,861 | ||
Interest-bearing deposits | 3,352,666 | 6,610,979 | |||
Cash | $ 3,447,665 | $ 10,434,196 | $ 14,869,861 | $ 14,869,861 | $ 134,516 |
Prepaid expenses (Details)
Prepaid expenses (Details) - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 | Jan. 01, 2022 |
Prepaid expenses. | |||
Research and development | $ 563,768 | ||
Insurance | $ 204,302 | $ 238,365 | 348,167 |
Investor relations conferences and services | 25,309 | 66,305 | 49,715 |
Consulting | 12,305 | 39,440 | |
Administrative services and other | 7,355 | 62,645 | 1,125 |
Prepaid expenses | $ 236,966 | $ 379,620 | $ 1,002,215 |
Contract payment (Details)
Contract payment (Details) - Dec. 31, 2020 - Prevail Info Works Inc | USD ($) shares | $ / shares |
Contract payment | ||
Current prepayment | $ | $ 1,200,000 | |
Issued units | shares | 108,590 | |
Par value per share | $ / shares | $ 14.76 |
Intangible assets (Details)
Intangible assets (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Intangible assets | |||
Balance at beginning | $ 199,834 | ||
Amortization | 66,632 | $ 17,077 | $ 14,266 |
Balance at ending | 175,254 | 199,834 | |
Carrying values | |||
Intangible assets | |||
Balance at beginning | 199,834 | 202,125 | |
Balance at ending | 175,254 | 199,834 | 202,125 |
Cost | |||
Intangible assets | |||
Balance at beginning | 294,751 | 287,905 | |
Additions | 42,052 | 26,005 | |
Foreign currency translation adjustment | (19,159) | ||
Balance at ending | 336,803 | 294,751 | 287,905 |
Accumulated amortization | |||
Intangible assets | |||
Balance at beginning | (94,917) | (85,780) | |
Amortization | 66,632 | 17,077 | |
Foreign currency translation adjustment | (7,940) | ||
Balance at ending | $ (161,549) | $ (94,917) | $ (85,780) |
Intangible assets - other detai
Intangible assets - other details (Details) - USD ($) | 1 Months Ended | 12 Months Ended | ||||
Jul. 09, 2013 | Oct. 09, 2012 | Dec. 31, 2012 | Dec. 31, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | |
Intangible assets. | ||||||
Total amount paid | $ 40,000 | |||||
Royalty amount received | 5% | |||||
Commercial sale of product | 10 years | |||||
Net sale product | 1.50% | |||||
Receipt of regulatory | $ 100,000 | |||||
Issuance to UFRF, shares of common stock | 180,397 | 160,783 | 160,783 | |||
Milestone payment | $ 500,000 | |||||
Annual license fee | 1,000 | |||||
Royalties paid | 0 | |||||
Number of remaining shares to be issued included in obligation to issue shares | 24,746 | $ 24,746 | $ 24,746 | |||
Royalties paid to UFRF | $ 0 | |||||
Expiration year | 10 years |
Property and equipment (Details
Property and equipment (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Disclosure of detailed information about property, plant and equipment [line items] | ||
Balance | $ 92,678 | |
Amortization | 73,062 | $ 41,069 |
Balance | 23,927 | 92,678 |
Gross carrying amount | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Balance | 133,621 | |
Additions | 4,311 | 134,284 |
Foreign currency translation adjustment | (663) | |
Balance | 137,932 | 133,621 |
Accumulated amortization | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Balance | (40,943) | |
Amortization | (73,062) | (41,069) |
Foreign currency translation adjustment | (126) | |
Balance | (114,005) | (40,943) |
Right-of-use assets | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Balance | 76,393 | |
Balance | 10,913 | 76,393 |
Right-of-use assets | Gross carrying amount | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Balance | 114,588 | |
Additions | 114,588 | |
Balance | 114,588 | 114,588 |
Right-of-use assets | Accumulated amortization | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Balance | (38,195) | |
Amortization | (65,480) | (38,195) |
Balance | (103,675) | (38,195) |
Office equipment | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Balance | 16,285 | |
Balance | 13,014 | 16,285 |
Office equipment | Gross carrying amount | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Balance | 19,033 | |
Additions | 4,311 | 19,696 |
Foreign currency translation adjustment | (663) | |
Balance | 23,344 | 19,033 |
Office equipment | Accumulated amortization | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Balance | (2,748) | |
Amortization | (7,582) | (2,874) |
Foreign currency translation adjustment | (126) | |
Balance | $ (10,330) | $ (2,748) |
Accounts payable and accrued _3
Accounts payable and accrued liabilities (Details) - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 | Jan. 01, 2022 |
Accounts payable and accrued liabilities | |||
Trade payables | $ 195,814 | $ 1,293,807 | $ 323,961 |
Accrued liabilities | 87,614 | 151,406 | 228,987 |
Total | $ 283,428 | $ 1,445,213 | $ 552,948 |
Lease obligation - Reconciliati
Lease obligation - Reconciliation of obligation (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Lease obligation | ||
Balance | $ 77,599 | |
Additions | $ 114,588 | |
Lease payments | (66,089) | (36,989) |
Balance | 11,510 | 77,599 |
Total lease obligations | 11,510 | 77,599 |
Less: current portion | $ (11,510) | (66,090) |
Non-current portion | $ 11,509 |
Lease obligation - Future payme
Lease obligation - Future payments (Details) - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
Lease obligation | ||
Minimum lease payments | $ 11,628 | $ 81,397 |
Less: imputed interest | 118 | 3,798 |
Total present value of minimum lease payments | 11,510 | 77,599 |
Less: current portion | (11,510) | (66,090) |
Non-current portion | 11,509 | |
2023 | ||
Lease obligation | ||
Minimum lease payments | 69,769 | |
2024 | ||
Lease obligation | ||
Minimum lease payments | $ 11,628 | $ 11,628 |
Share capital and reserves- Aut
Share capital and reserves- Authorized and issued (Details) - shares | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Nov. 08, 2021 |
Share capital and reserves | ||||
Number of shares issued | 1,998,848 | 1,670,071 | 1,443,293 | 362,333 |
Share capital and reserves - Is
Share capital and reserves - Issuances (Details) | 12 Months Ended | |||||||||
Jan. 19, 2023 USD ($) $ / shares shares | Dec. 29, 2022 USD ($) $ / shares shares | Oct. 07, 2022 USD ($) $ / shares shares | Oct. 07, 2022 CAD ($) shares | Nov. 08, 2021 USD ($) $ / shares shares | Oct. 15, 2021 $ / shares | Feb. 09, 2021 USD ($) $ / shares shares | Dec. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) shares | |
Disclosure of classes of share capital [line items] | ||||||||||
Price per unit | $ / shares | $ 37.17 | |||||||||
Aggregate gross proceeds | $ | $ 1,466,150 | |||||||||
Number of warrants issued | 371,322 | |||||||||
Issuance costs recorded as a reduction of equity | $ | $ 59,092 | |||||||||
Value of shares issued from exercise of warrants | $ | $ 296 | $ (64) | 2,273,043 | |||||||
Amount transferred from reserves to share capital | $ | $ 51,783 | |||||||||
Warrant | ||||||||||
Disclosure of classes of share capital [line items] | ||||||||||
Exercise price of warrants | $ / shares | $ 42.93 | |||||||||
Warrants expiration term | 5 years | |||||||||
Number of shares issued upon exercise of warrants | 72,398 | |||||||||
Value of shares issued from exercise of warrants | $ | $ 2,273,043 | |||||||||
Amount transferred from reserves to share capital | $ | 23,566 | |||||||||
Pre-Funded Warrant | ||||||||||
Disclosure of classes of share capital [line items] | ||||||||||
Number of shares issued upon exercise of warrants | 328,777 | |||||||||
Value of shares issued from exercise of warrants | $ | $ 296 | |||||||||
Amount transferred from reserves to share capital | $ | $ 531,885 | |||||||||
Pre-Funded Warrant | Common Share Units | ||||||||||
Disclosure of classes of share capital [line items] | ||||||||||
Exercise price of warrants | $ / shares | $ 0.0009 | |||||||||
Private placement | ||||||||||
Disclosure of classes of share capital [line items] | ||||||||||
Number of units issued | 231,743 | |||||||||
Price per unit | $ / shares | $ 26.415 | |||||||||
Number of shares per unit | 1 | |||||||||
Number of warrant per unit | 1 | |||||||||
Number of shares per warrant | 1 | |||||||||
Aggregate gross proceeds | $ | $ 4,999,640 | $ 4,785,935 | ||||||||
Exercise price of warrants | $ / shares | $ 42.30 | |||||||||
Warrants expiration term | 5 years | |||||||||
Proceeds allocated to derivative warrant liability | $ 3,714,757 | 4,212,000 | ||||||||
Proceeds allocated to common shares | 359,868 | $ 573,935 | ||||||||
Proceeds allocated to pre-funded warrants | $ | 925,015 | |||||||||
Issuance costs | $ | 1,067,153 | |||||||||
Issuance costs recorded as a reduction of equity | 317,301 | $ 32,394 | ||||||||
Transaction costs on derivative warrant liability and pre-funded warrants | $ 917,357 | $ 227,132 | ||||||||
Private placement | Common Share Units | ||||||||||
Disclosure of classes of share capital [line items] | ||||||||||
Number of units issued | 155,555 | 155,555 | ||||||||
Price per unit | $ / shares | $ 9 | |||||||||
Number of shares per unit | 1 | 1 | ||||||||
Number of warrant per unit | 1 | 1 | ||||||||
Number of shares per warrant | 1 | 1 | ||||||||
Private placement | Pre-Funded Units | ||||||||||
Disclosure of classes of share capital [line items] | ||||||||||
Number of units issued | 400,000 | 400,000 | ||||||||
Price per unit | $ / shares | $ 8.9991 | |||||||||
Number of shares per unit | 1 | 1 | ||||||||
Number of warrant per unit | 1 | 1 | ||||||||
Number of shares per warrant | 1 | 1 | ||||||||
Private placement | Warrant | Pre-Funded Units | ||||||||||
Disclosure of classes of share capital [line items] | ||||||||||
Exercise price of warrants | $ / shares | $ 10.98 | |||||||||
Warrants expiration term | 5 years | 5 years | ||||||||
Private placement | Pre-Funded Warrant | ||||||||||
Disclosure of classes of share capital [line items] | ||||||||||
Price per unit | $ / shares | $ 0.0009 | |||||||||
Number of shares issued upon exercise of warrants | 71,223 | |||||||||
Value of shares issued from exercise of warrants | $ | $ 64 | |||||||||
Amount transferred from reserves to share capital | $ | $ 164,704 | |||||||||
Private placement | Pre-Funded Warrant | Common Share Units | ||||||||||
Disclosure of classes of share capital [line items] | ||||||||||
Exercise price of warrants | $ / shares | $ 0.0009 | |||||||||
Private placement | Finders' warrants | ||||||||||
Disclosure of classes of share capital [line items] | ||||||||||
Exercise price of warrants | $ / shares | $ 42.30 | |||||||||
Number of warrants issued | 27,777 | 27,777 | 6,476 | |||||||
Fair value of warrants | $ | $ 185,738 | $ 150,000 |
Share capital and reserves - _2
Share capital and reserves - Issuances (Additional information) (Details) | 12 Months Ended | |||||
Oct. 07, 2022 USD ($) shares | Oct. 07, 2022 CAD ($) shares | Nov. 08, 2021 USD ($) $ / shares shares | Oct. 15, 2021 $ / shares | Feb. 09, 2021 USD ($) $ / shares shares | Dec. 31, 2021 USD ($) | |
Disclosure of classes of share capital [line items] | ||||||
Price per unit | $ / shares | $ 37.17 | |||||
Aggregate gross proceeds | $ | $ 1,466,150 | |||||
Number of warrants issued | shares | 371,322 | |||||
Issuance costs recorded as a reduction of equity | $ | $ 59,092 | |||||
Warrant | ||||||
Disclosure of classes of share capital [line items] | ||||||
Exercise price of warrants | $ / shares | $ 42.93 | |||||
Warrants expiration term | 5 years | |||||
Private placement | ||||||
Disclosure of classes of share capital [line items] | ||||||
Number of units issued | shares | 231,743 | |||||
Price per unit | $ / shares | $ 26.415 | |||||
Aggregate gross proceeds | $ | $ 4,999,640 | $ 4,785,935 | ||||
Number of shares per unit | shares | 1 | |||||
Number of warrant per unit | shares | 1 | |||||
Number of shares per warrant | shares | 1 | |||||
Exercise price of warrants | $ / shares | $ 42.30 | |||||
Warrants expiration term | 5 years | |||||
Statutory hold period | 4 months | |||||
Threshold price of the common shares for accelerated warrants | $ / shares | $ 126.81 | |||||
Minimum consecutive trading days to determine price of share | 10 days | |||||
Proceeds allocated to derivative warrant liability | $ 3,714,757 | 4,212,000 | ||||
Proceeds allocated to common shares | 359,868 | $ 573,935 | ||||
Cash commissions | $ | $ 135,158 | |||||
Additional issuance costs | $ | 6,229 | |||||
Issuance costs recorded as a reduction of equity | 317,301 | 32,394 | ||||
Transaction costs on derivative warrant liability and pre-funded warrants | $ 917,357 | $ 227,132 | ||||
Private placement | Finders' warrants | ||||||
Disclosure of classes of share capital [line items] | ||||||
Exercise price of warrants | $ / shares | $ 42.30 | |||||
Number of warrants issued | shares | 27,777 | 27,777 | 6,476 | |||
Fair value of warrants | $ | $ 185,738 | $ 150,000 |
Share capital and reserves - IP
Share capital and reserves - IPO Offering (Details) | 12 Months Ended | |||||
Nov. 08, 2021 USD ($) $ / shares shares | Nov. 08, 2021 CAD ($) shares | Oct. 15, 2021 USD ($) $ / shares shares | Dec. 31, 2023 USD ($) shares | Dec. 31, 2022 USD ($) shares | Dec. 31, 2021 USD ($) shares | |
Disclosure of classes of share capital [line items] | ||||||
Price per unit | $ / shares | $ 37.17 | |||||
Aggregate gross proceeds | $ 1,466,150 | |||||
Warrants to purchase common shares | shares | 39,444 | |||||
Number of common shares issued | shares | 362,333 | 1,998,848 | 1,670,071 | 1,443,293 | ||
Number of warrants issued | shares | 371,322 | 371,322 | ||||
Issuance costs recorded as a reduction of equity | $ 59,092 | |||||
Number of shares issued from exercise of options | shares | 5,678 | |||||
Value of shares issued from exercise of options | $ 66,502 | |||||
Amount transferred from reserves to share capital | 51,783 | |||||
Value of shares issued from exercise of warrants | $ 296 | $ (64) | $ 2,273,043 | |||
Shares issued in exchange for services | shares | 2,839 | |||||
Value of Shares issued in exchange for services | $ 59,092 | |||||
Warrant | ||||||
Disclosure of classes of share capital [line items] | ||||||
Exercise price of warrants | $ / shares | $ 42.93 | |||||
Warrants expiration term | 5 years | |||||
Warrants to purchase common shares | shares | 48,433 | |||||
Amount transferred from reserves to share capital | $ 23,566 | |||||
Number of shares issued upon exercise of warrants | shares | 72,398 | |||||
Value of shares issued from exercise of warrants | $ 2,273,043 | |||||
Amount transferred from derivative warrant liability to share capital | $ 440,669 | |||||
US IPO Offering [Member] | ||||||
Disclosure of classes of share capital [line items] | ||||||
Number of units issued | shares | 322,888 | |||||
Number of shares per unit | shares | 1 | |||||
Par value | $ / shares | $ 0 | |||||
Number of warrant per unit | shares | 1 | |||||
Number of shares per warrant | shares | 1 | |||||
Price per unit | $ / shares | $ 37.17 | |||||
Aggregate gross proceeds | $ 12,001,780 | |||||
Proceeds allocated to derivative warrant liability | 5,998,000 | |||||
Proceeds allocated to common shares | $ 7,467,772 | |||||
US IPO Offering [Member] | Finders' warrants | ||||||
Disclosure of classes of share capital [line items] | ||||||
Number of warrants issued | shares | 16,144 | 16,144 | ||||
Issuance costs | $ 1,814,673 | |||||
Fair value of warrants | $ 292,842 | |||||
Issuance costs recorded as a reduction of equity | 1,104,238 | |||||
Transaction costs on derivative warrant liability and pre-funded warrants | $ 1,003,277 |
Share capital and reserves - Di
Share capital and reserves - Diluted Weighted Average Number of Shares Outstanding (Details) - shares | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Diluted Weighted Average Number of Shares Outstanding | |||
Basic weighted average shares outstanding | 1,981,734 | 1,479,914 | 1,094,182 |
Diluted weighted average shares outstanding | 1,981,734 | 1,479,914 | 1,094,182 |
Share capital and reserves - Ch
Share capital and reserves - Changes in warrants (Details) - $ / shares | 12 Months Ended | ||||
Oct. 07, 2022 | Oct. 07, 2021 | Dec. 31, 2023 | Dec. 31, 2022 | Nov. 08, 2021 | |
Share capital and reserves | |||||
Number of warrants balance at beginning | 569,655 | ||||
Exercise price balance at beginning | $ 33.10 | ||||
Exercise price granted | $ 10.98 | ||||
Number of warrants granted | 555,555 | ||||
Number of warrants balance at ending | 1,125,210 | ||||
Exercise price balance at ending | $ 22.31 | 22.31 | |||
Warrants to purchase common shares | 39,444 | ||||
Exercise price warrant | $ 10.98 | ||||
Pre-Funded Warrants [Member] | |||||
Share capital and reserves | |||||
Number of warrants granted | 400,000 | ||||
Exercise price granted | $ 0.0009 | ||||
Number of warrants exercised | (71,223) | ||||
Exercise price exercised | $ 0.0009 | ||||
Exercise price balance at ending | $ 0.0009 |
Share capital and reserves - Wa
Share capital and reserves - Warrants Outstanding (Details) - $ / shares | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Average remaining contractual life | 4 years 3 months | |
Warrant reserve [member] | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Average remaining contractual life | 3 years 1 month 24 days | 4 years 1 month 24 days |
Exercise Price 42.26 | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Exercise price | $ 42.26 | |
Number of shares outstanding | 198,333 | |
Expiry date | February 9, 2026 | |
Average remaining contractual life | 2 years 1 month 9 days | |
Exercise Price 42.93 | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Exercise price | $ 42.93 | |
Number of shares outstanding | 270,211 | |
Expiry date | October 15, 2026 | |
Average remaining contractual life | 2 years 9 months 14 days | |
Exercise price 10.53 | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Exercise price | $ 10.53 | |
Number of shares outstanding | 101,111 | |
Expiry date | October 15, 2026 | |
Average remaining contractual life | 2 years 9 months 14 days | |
Exercise price 10.98 | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Exercise price | $ 10.98 | |
Number of shares outstanding | 555,555 | |
Expiry date | October 7, 2027 | |
Average remaining contractual life | 3 years 9 months 7 days | |
Exercise Price $4.77 [Member] | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Exercise price | $ 42.93 |
Share capital and reserves - Pr
Share capital and reserves - Pre-Funded Warrants (Details) - $ / shares | 12 Months Ended | |||
Oct. 07, 2022 | Oct. 07, 2021 | Dec. 31, 2023 | Dec. 31, 2022 | |
Share capital and reserves | ||||
Number of warrants granted | 555,555 | |||
Exercise price at beginning | $ 22.31 | |||
Exercise price granted | $ 10.98 | |||
Pre-Funded Warrants | ||||
Share capital and reserves | ||||
Number of warrants balance at beginning | 328,777 | |||
Number of warrants granted | 400,000 | |||
Exercise price granted | $ 0.0009 | |||
Exercise price at beginning | $ 0.0009 | |||
Exercise price granted | $ 0.0009 | |||
Number of warrant exercised | (328,777) | |||
Number of warrants balance at ending | 328,777 | |||
Finders’ Warrants [Member] | ||||
Share capital and reserves | ||||
Number of warrants balance at beginning | 50,298 | 22,521 | ||
Exercise price balance at beginning | $ 39.61 | |||
Number of warrants granted | 27,777 | |||
Exercise price granted | $ 10.98 | |||
Number of warrants balance at ending | 50,298 | |||
Exercise price balance at ending | $ 23.89 |
Share capital and reserves - Fi
Share capital and reserves - Finders' and underwriters warrants (Details) | 12 Months Ended | |||
Oct. 07, 2022 CAD ($) | Dec. 31, 2023 CAD ($) | Dec. 31, 2022 | Dec. 31, 2023 $ / shares shares | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||
Number of outstanding | shares | 50,298 | |||
Average remaining contractual life | 4 years 3 months | |||
Fair value of the finders' warrants | $ | $ 185,738 | $ 3,714,757 | ||
Expected life | 5 years | 5 years | ||
Expected volatility | 100% | 100% | 100% | |
Risk-free interest rate | 3.66% | |||
Expected dividend yield | 0% | |||
Exercise Price 42.3 [Member] | ||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||
Exercise price | $ / shares | $ 42.30 | |||
Number of outstanding | shares | 6,377 | |||
Expiry date | February 9, 2026 | |||
Average remaining contractual life | 2 years 1 month 9 days | |||
Exercise Price 42.93 [Member] | ||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||
Exercise price | $ / shares | $ 42.93 | |||
Number of outstanding | shares | 16,144 | |||
Expiry date | October 15, 2026 | |||
Average remaining contractual life | 2 years 9 months 14 days | |||
Exercise price 10.98 [Member] | ||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||
Exercise price | $ / shares | $ 10.98 | |||
Number of outstanding | shares | 27,777 | |||
Expiry date | October 7, 2027 | |||
Average remaining contractual life | 3 years 9 months 7 days | |||
Exercise Price $4.77 [Member] | ||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||
Exercise price | $ / shares | $ 42.93 |
Share capital and reserves - Fa
Share capital and reserves - Fair value of stock options (Details) | 12 Months Ended | ||
Oct. 07, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | |
Share capital and reserves | |||
Annualized volatility | 100% | 100% | 100% |
Risk-free interest rate | 3.66% | ||
Expected life | 5 years | 5 years | |
Bottom of range [member] | |||
Share capital and reserves | |||
Risk-free interest rate | 3.25% | 1.44% | |
Top of range [member] | |||
Share capital and reserves | |||
Risk-free interest rate | 3.32% |
Share capital and reserves - _3
Share capital and reserves - Changes in stock options (Details) - $ / shares | 12 Months Ended | |||||
Nov. 25, 2022 | Jun. 06, 2022 | Jan. 12, 2022 | Oct. 07, 2021 | Dec. 31, 2023 | Dec. 31, 2022 | |
Share capital and reserves | ||||||
Exercise price at beginning | $ 22.31 | |||||
Number of options granted | 555,555 | |||||
Number of warrants balance at beginning | 569,655 | |||||
Number of warrants balance at ending | 1,125,210 | |||||
Exercise price balance at ending | $ 22.31 | $ 22.31 | ||||
Stock Options [Member] | ||||||
Share capital and reserves | ||||||
Number of options balance at beginning | 67,332 | |||||
Exercise price at beginning | $ 21.75 | $ 27.89 | ||||
Number of options granted | 7,776 | 43,866 | 14,162 | 8,000 | ||
Exercise price granted | $ 12.42 | $ 14.40 | $ 22.86 | $ 2.90 | ||
Number of warrants balance at beginning | 128,240 | |||||
Number of options expired | (32,318) | (4,896) | ||||
Exercise price expired | $ 33.65 | $ 28.67 | ||||
Number of warrants balance at ending | 103,922 | 128,240 | ||||
Exercise price balance at ending | $ 16.60 | $ 21.75 | ||||
Number of options vested balance at end | 89,872 | |||||
Exercise price vested balance at end | $ 16.54 |
Share capital and reserves - In
Share capital and reserves - Information on stock options (Details) - $ / shares | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Share capital and reserves | ||
Number Outstanding | 103,922 | |
Average remaining Contractual Life | 4 years 3 months | |
Ranges Of Exercise Prices For Outstanding Share Options Initial [Member] | ||
Share capital and reserves | ||
Exercise Price | $ 14.76 | |
Number Outstanding | 14,669 | |
Number Exercisable | 14,669 | |
Expiry date | June 23, 2025 | |
Average remaining Contractual Life | 1 year 5 months 23 days | |
Ranges Of Exercise Prices For Outstanding Share Options One [Member] | ||
Share capital and reserves | ||
Exercise Price | $ 25.38 | |
Number Outstanding | 1,419 | |
Number Exercisable | 1,419 | |
Expiry date | August 27, 2025 | |
Average remaining Contractual Life | 1 year 7 months 28 days | |
Ranges Of Exercise Prices For Outstanding Share Options Two [Member] | ||
Share capital and reserves | ||
Exercise Price | $ 29.61 | |
Number Outstanding | 6,624 | |
Number Exercisable | 6,624 | |
Expiry date | January 11, 2026 | |
Average remaining Contractual Life | 2 years 10 days | |
Ranges Of Exercise Prices For Outstanding Share Options Three [Member] | ||
Share capital and reserves | ||
Exercise Price | $ 16.92 | |
Number Outstanding | 2,366 | |
Number Exercisable | 2,366 | |
Expiry date | May 12, 2026 | |
Average remaining Contractual Life | 2 years 4 months 9 days | |
Ranges Of Exercise Prices For Outstanding Share Options Four [Member] | ||
Share capital and reserves | ||
Exercise Price | $ 21.69 | |
Number Outstanding | 4,732 | |
Number Exercisable | 3,811 | |
Expiry date | July 14, 2026 | |
Average remaining Contractual Life | 2 years 6 months 14 days | |
Ranges Of Exercise Prices For Outstanding Share Options Five [Member] | ||
Share capital and reserves | ||
Exercise Price | $ 22.86 | |
Number Outstanding | 8,085 | |
Number Exercisable | 8,085 | |
Expiry date | December 21, 2026 | |
Average remaining Contractual Life | 2 years 11 months 23 days | |
Ranges Of Exercise Prices For Outstanding Share Options Six [Member] | ||
Share capital and reserves | ||
Exercise Price | $ 22.86 | |
Number Outstanding | 11,940 | |
Number Exercisable | 7,628 | |
Expiry date | January 12, 2027 | |
Average remaining Contractual Life | 3 years 14 days | |
Ranges Of Exercise Prices For Outstanding Share Options Seven [Member] | ||
Share capital and reserves | ||
Exercise Price | $ 14.40 | |
Number Outstanding | 40,533 | |
Number Exercisable | 35,265 | |
Expiry date | June 6, 2027 | |
Average remaining Contractual Life | 3 years 5 months 4 days | |
Ranges Of Exercise Prices For Outstanding Share Options Eight [Member] | ||
Share capital and reserves | ||
Exercise Price | $ 12.42 | |
Number Outstanding | 5,554 | |
Number Exercisable | 2,005 | |
Expiry date | November 25, 2027 | |
Average remaining Contractual Life | 3 years 10 months 24 days | |
Ranges Of Exercise Prices For Outstanding Share Options Nine [Member] | ||
Share capital and reserves | ||
Exercise Price | $ 2.90 | |
Number Outstanding | 8,000 | |
Number Exercisable | 8,000 | |
Expiry date | December 31, 2028 | |
Average remaining Contractual Life | 5 years |
Share capital and reserves - De
Share capital and reserves - Derivative warrant liability (Details) - CAD ($) | 12 Months Ended | |||||
Oct. 07, 2022 | Oct. 15, 2021 | Feb. 09, 2021 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Share capital and reserves | ||||||
Number of warrants balance at beginning | 569,655 | |||||
Number of warrants balance at ending | 1,125,210 | 569,655 | ||||
Derivative Warrants Liabilities [Member] | ||||||
Share capital and reserves | ||||||
Number of warrants balance at beginning | 3,854,403 | 3,626,375 | ||||
Warrants issued | 3,714,757 | 4,212,000 | ||||
Warrants exercised | (335,950) | |||||
Reclassified from reserves | $ 318,000 | |||||
Fair value adjustment | (3,641,403) | (3,396,137) | (2,636,391) | |||
Fair value reclassified to reserves | (3,506,565) | |||||
Warrants issued | 5,998,000 | |||||
Foreign currency translation adjustment | $ (90,592) | $ (104,719) | ||||
Number of warrants balance at ending | 531,000 | 3,854,403 | 3,626,375 |
Share capital and reserves - _4
Share capital and reserves - Fair value of the derivative warrant liabilities (Details) - $ / shares | 12 Months Ended | |||
Oct. 07, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Share capital and reserves | ||||
Share price | $ 10.98 | |||
Risk-free interest rate | 3.66% | |||
Expected dividend yield | 0% | |||
Expected volatility | 100% | 100% | 100% | |
Top of range [member] | ||||
Share capital and reserves | ||||
Risk-free interest rate | 3.32% | |||
Bottom of range [member] | ||||
Share capital and reserves | ||||
Risk-free interest rate | 3.25% | 1.44% | ||
Derivative Warrant Liabilities [Member] | ||||
Share capital and reserves | ||||
Share price | $ 2.31 | $ 7.29 | $ 18.45 | |
Risk-free interest rate | 3.55% | 1.23% | ||
Expected dividend yield | 0% | 0% | 0% | |
Expected volatility | 100% | 100% | 100% | |
Remaining term (in years) | 4 years 9 months 18 days | |||
Derivative Warrant Liabilities [Member] | Top of range [member] | ||||
Share capital and reserves | ||||
Risk-free interest rate | 3.91% | |||
Remaining term (in years) | 3 years 9 months 18 days | 4 years 9 months 18 days | ||
Derivative Warrant Liabilities [Member] | Bottom of range [member] | ||||
Share capital and reserves | ||||
Risk-free interest rate | 3.25% | |||
Remaining term (in years) | 2 years 1 month 6 days | 3 years 9 months 18 days |
Share capital and reserves (Det
Share capital and reserves (Details) | 12 Months Ended | |||||
Oct. 07, 2022 CAD ($) | Dec. 31, 2023 USD ($) $ / shares shares | Dec. 31, 2023 CAD ($) shares | Dec. 31, 2022 USD ($) $ / shares shares | Dec. 31, 2021 USD ($) $ / shares shares | Nov. 08, 2021 shares | |
Share capital and reserves | ||||||
Average Remaining contractual life | 4 years 3 months | |||||
Value of shares issued from exercise of warrants | $ | $ 296 | $ (64) | $ 2,273,043 | |||
[custom:ExpectedLife] | 5 years | 5 years | 5 years | |||
Expected volatility | 100% | 100% | 100% | 100% | ||
Share based payment expense | $ | $ 120,984 | $ 487,940 | $ 396,423 | |||
Number of warrants issued | shares | 1,998,848 | 1,998,848 | 1,670,071 | 1,443,293 | 362,333 | |
Fair value of the warrants | $ | $ 185,738 | $ 3,714,757 | ||||
Share price on date of grant | $ / shares | $ 9.09 | |||||
Expected life | 5 years | 5 years | 5 years | |||
Exercise price warrant | $ / shares | $ 10.98 | |||||
Risk free rate | 3.66% | 3.66% | ||||
Expected dividend yield | 0% | 0% | ||||
Warrant reserve [member] | ||||||
Share capital and reserves | ||||||
Average Remaining contractual life | 3 years 1 month 24 days | 3 years 1 month 24 days | 4 years 1 month 24 days | |||
Stock Options [Member] | ||||||
Share capital and reserves | ||||||
Average Remaining contractual life | 3 years 14 days | 3 years 14 days | 3 years 5 months 4 days | |||
Derivative Warrant Liabilities [Member] | ||||||
Share capital and reserves | ||||||
Expected volatility | 100% | 100% | 100% | 100% | ||
Exercise price warrant | $ / shares | $ 2.31 | $ 7.29 | $ 18.45 | |||
Expected dividend yield | 0% | 0% | 0% | 0% |
Related party transactions (Det
Related party transactions (Details) | 12 Months Ended | |||||
Dec. 31, 2023 USD ($) | Dec. 31, 2023 CAD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2022 CAD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2021 CAD ($) | |
Related party transactions | ||||||
Wages and benefits paid | $ 417,810 | $ 593,116 | $ 264,178 | |||
Research and development fees | 200,229 | 238,813 | 84,416 | |||
Directors' fees paid or accrued | 182,675 | 127,053 | 33,492 | |||
Professional fees | $ 514,263 | $ 454,071 | $ 226,374 | |||
Payable to directors of the company | 6,805 | 14,914 | ||||
IFRS Chief Executive Officer | ||||||
Related party transactions | ||||||
Consulting fees | 3,512 | 0 | ||||
Payable to directors of the company | 28,846 | |||||
Former Chief Financial Officer | ||||||
Related party transactions | ||||||
Payable to directors of the company | 10,904 | |||||
IFRS Chief Financial Officer | ||||||
Related party transactions | ||||||
Professional fees | 76,201 | 46,962 | ||||
Payable to directors of the company | 14,631 | |||||
Chief Medical Officer | ||||||
Related party transactions | ||||||
Payable to directors of the company | 8,000 | 50,000 | ||||
Chief Business Officer | ||||||
Related party transactions | ||||||
Consulting fees | 280,000 | 44,946 | 0 | |||
Payable to directors of the company | 15,000 | 25,000 | ||||
IFRS Director | ||||||
Related party transactions | ||||||
Consulting fees | 0 | 44,179 | ||||
IFRS Board Of Directors Chairman | ||||||
Related party transactions | ||||||
Directors' fees paid or accrued | $ 133,967 | $ 68,617 | $ 0 |
Related party transactions - Ma
Related party transactions - Management compensation transactions (Details) - CAD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Related party transactions | |||
Directors' fees | $ 182,675 | $ 127,053 | $ 33,492 |
Board of directors | |||
Related party transactions | |||
Management Compensation | 974,240 | 880,387 | 442,932 |
Directors' fees | 182,675 | 127,053 | 51,820 |
Share-based payments | 77,779 | 404,573 | 276,436 |
Total compensation | $ 1,234,694 | $ 1,412,013 | $ 771,188 |
Income taxes (Details)
Income taxes (Details) - CAD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Income taxes | |||
Net loss for the year | $ (2,158,000) | $ (7,718,000) | $ (1,579,000) |
Statutory tax rate | 27% | 27% | 27% |
Expected income tax recovery | $ (583,000) | $ (2,084,000) | $ (426,000) |
Non-deductible permanent differences | 45,000 | 131,000 | 108,000 |
Temporary differences | (25,000) | 276,000 | 447,000 |
(Over) under provided in prior years | (559,000) | (552,000) | |
Change in tax assets not recognized | $ 1,122,000 | $ 2,229,000 | $ (129,000) |
Income taxes - Significant comp
Income taxes - Significant components of the Company's deferred tax assets (Details) - CAD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
Income taxes | ||
Share issuance costs | $ 229,000 | $ 485,000 |
Cumulative eligible capital | 117,000 | 90,000 |
Operating losses carried forward | 4,819,000 | 4,343,000 |
Total deferred tax assets | 5,165,000 | 4,918,000 |
Deferred tax assets not recognized | $ (5,165,000) | $ (4,918,000) |
Income taxes - Schedule of loss
Income taxes - Schedule of losses expire (Details) | 12 Months Ended |
Dec. 31, 2023 CAD ($) | |
Income taxes | |
Expiry date | $ 21,561,000 |
non-capital losses carried forward | 21,561,000 |
Two Thousand Thirty Two | |
Income taxes | |
Expiry date | 44,000 |
Two Thousand Thirty Three | |
Income taxes | |
Expiry date | 748,000 |
Two Thousand Thirty Four | |
Income taxes | |
Expiry date | 325,000 |
Two Thousand Thirty Five | |
Income taxes | |
Expiry date | 286,000 |
Two Thousand Thirty Six | |
Income taxes | |
Expiry date | 365,000 |
Two Thousand Thirty Seven | |
Income taxes | |
Expiry date | 618,000 |
Two Thousand Thirty Eight | |
Income taxes | |
Expiry date | 1,089,000 |
Two Thousand Thirty Nine | |
Income taxes | |
Expiry date | 554,000 |
Two Thousand Fourty | |
Income taxes | |
Expiry date | 1,116,000 |
Two Thousand Forty One | |
Income taxes | |
Expiry date | 3,648,000 |
Two Thousand Forty Two | |
Income taxes | |
Expiry date | 9,634,000 |
Two thousand forty three | |
Income taxes | |
Expiry date | $ 3,134,000 |
Financial instruments and ris_3
Financial instruments and risk management (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Cash And Cash Equivalent | Level 1 of fair value hierarchy | ||
Financial instruments and risk management | ||
Carrying value | $ 3,447,665 | $ 10,434,196 |
Fair value | 3,447,665 | 10,434,196 |
Account Payable And Accrued Liability. | Level 1 of fair value hierarchy | ||
Financial instruments and risk management | ||
Carrying value | 283,428 | 1,445,213 |
Fair value | 283,428 | 1,445,213 |
Lease liabilities. | Level 2 of fair value hierarchy | ||
Financial instruments and risk management | ||
Carrying value | 11,510 | 77,599 |
Fair value | 11,510 | 77,599 |
Derivative Warrant Liability | Level 3 of fair value hierarchy | ||
Financial instruments and risk management | ||
Carrying value | 531,000 | 3,854,403 |
Fair value | $ 531,000 | $ 3,854,403 |
Financial instruments and ris_4
Financial instruments and risk management - Company's risk exposures and their impact on the financial instruments (Details) - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Financial instruments and risk management | |||||
Cash | $ 3,447,665 | $ 10,434,196 | $ 14,869,861 | $ 14,869,861 | $ 134,516 |
Financial instruments and ris_5
Financial instruments and risk management - Contractual maturities of these financial liabilities (Details) - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
Financial instruments and risk management | ||
Accounts payable and accrued liabilities | $ 283,428 | $ 1,445,213 |
Lease liability | 11,510 | 77,599 |
Total | 294,938 | 1,522,812 |
Not later than three months | ||
Financial instruments and risk management | ||
Accounts payable and accrued liabilities | 283,428 | 1,445,213 |
Lease liability | 11,510 | 16,064 |
Total | $ 294,938 | 1,461,277 |
Later than three months and not later than one year | ||
Financial instruments and risk management | ||
Lease liability | 50,026 | |
Total | 50,026 | |
Later than one year and not later than three years | ||
Financial instruments and risk management | ||
Lease liability | 11,509 | |
Total | $ 11,509 |
Financial instruments and ris_6
Financial instruments and risk management - Foreign Currency Risk (Details) | Dec. 31, 2023 USD ($) |
Financial instruments and risk management | |
Cash | $ 36,627 |
Accounts payable and accrued liabilities | (173,068) |
Net Exposure | (136,441) |
United States of America, Dollars | |
Financial instruments and risk management | |
Cash | 36,627 |
Accounts payable and accrued liabilities | (173,068) |
Net Exposure | (136,441) |
Effect of +/- 10% change in currency | $ (13,644) |
Commitments - Employment Agreem
Commitments - Employment Agreements (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Commitments | ||
Management services - officers | $ 321,000 | $ 441,754 |
Commitments - Additional Inform
Commitments - Additional Information (Details) | 12 Months Ended | ||
Dec. 31, 2023 USD ($) | Dec. 31, 2022 CAD ($) | Dec. 31, 2022 USD ($) | |
The President, CEO, and director | |||
Commitments | |||
Termination benefits expenses | $ 321,000 | $ 300,000 | |
CFO | |||
Commitments | |||
Termination benefits expenses | $ 192,000 |
Commitments (Details)
Commitments (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Commitments | ||
payments for activities related to its clinical trial | $ 446,000 | $ 1,994,232 |
Segmented information (Details)
Segmented information (Details) | 12 Months Ended |
Dec. 31, 2023 segment | |
Segmented information | |
Number Of operating segment | 1 |
Subsequent events (Details)
Subsequent events (Details) | 12 Months Ended | |||
Mar. 04, 2024 USD ($) $ / shares shares | Feb. 15, 2024 USD ($) item $ / shares shares | Nov. 08, 2021 USD ($) $ / shares | Dec. 31, 2023 CAD ($) | |
Subsequent events | ||||
Price per unit | $ / shares | $ 37.17 | |||
Aggregate gross proceeds | $ | $ 1,466,150 | |||
Offering | Non-brokered offering | ||||
Subsequent events | ||||
Number of tranches of offering | item | 2 | |||
Finder's fees paid | $ | $ 132,551 | |||
Percentage of finder's fee on certain subscriptions to qualified finders | 5% | |||
Offering | Non-brokered offering | Warrants | ||||
Subsequent events | ||||
Exercise price of warrants | $ / shares | $ 4.50 | $ 4.50 | ||
Warrants expiration term | 2 years | 2 years | ||
Threshold price of the common shares for accelerated warrants | $ / shares | $ 6 | $ 6 | ||
Minimum consecutive trading days to determine price of share | 10 days | 10 days | ||
Offering | Non-brokered offering | Common Share Units | ||||
Subsequent events | ||||
Number of units issued | shares | 899,717 | 899,717 | ||
Price per unit | $ / shares | $ 3 | $ 3 | ||
Aggregate gross proceeds | $ | $ 2,699,151 | $ 2,699,151 | ||
Number of shares per unit | shares | 1 | 1 | ||
Number of warrant per unit | shares | 1 | 1 | ||
Number of shares per warrant | shares | 1 | 1 |
Subsequent events - options iss
Subsequent events - options issued (Details) - Options issued - Stock options | Mar. 04, 2024 shares $ / shares |
Subsequent events | |
Options to purchase common shares issued | shares | 39,483 |
Exercisable price | $ / shares | $ 4.50 |
Expiration term | 5 years |
Subsequent events - warrants (D
Subsequent events - warrants (Details) - $ / shares | 1 Months Ended | |||
Mar. 11, 2024 | Oct. 31, 2022 | Oct. 31, 2021 | Feb. 28, 2021 | |
Subsequent events | ||||
Warrants issued | 583,332 | 286,355 | 204,710 | |
Original exercise price | $ 10.98 | $ 42.93 | $ 42.26 | |
Amending exercise price of warrants | ||||
Subsequent events | ||||
Outstanding common share purchase warrants | 1,074,397 | |||
Exercise price of warrants | $ 5 | |||
Minimum consecutive trading days to determine price of share | 10 days | |||
Threshold price of the common shares for accelerated warrants | $ 6.50 | |||
Exercise period of warrants | 30 days | |||
Term after last premium trading day for starting of exercise period of warrant | 7 days | |||
Amending exercise price of warrants | Minimum | ||||
Subsequent events | ||||
Original exercise price | 5 | 5 | 5 | |
Amending exercise price of warrants | Maximum | ||||
Subsequent events | ||||
Original exercise price | $ 10.98 | $ 42.93 | $ 42.26 |