| Summary of significant accounting policies | 2. Summary of significant accounting policies Statement
of compliance These
consolidated financial statements have been prepared in accordance with International Financial Reporting Standards (“IFRS”)
issued by the International Accounting Standards Board (“IASB”) Basis of presentation The
consolidated financial statements are prepared on a historical cost basis, except for some financial instruments and share-based payment
transactions, which are measured at fair value. Adjustments
to comparative figures – correction of errors For
the year ended September 30, 2022 and 2021, the Company identified material misstatements in measurement and recognition of certain items
to the consolidated financial statements related to the following subjects.
● Grant liability:
● Development
costs:
● Other:
Accordingly,
the consolidated financial statements for the years ended September 30, 2022 and 2021 were restated to reflect adjustments made as a
result of these corrections of errors, as disclosed as follow:
As at September 30, 2022 Adjustments
Consolidated statements of financial position As previously Government Development Others Total As restated
Assets
Government assistance and research and development
tax credits receivable 2,845,728 (287,058 ) — — (287,058 ) 2,558,670
Intangible assets, net 34,798,844 (137,173 ) 99,518 — (37,655 ) 34,761,189
Goodwill 7,416,126 — — (98,000 ) (98,000 ) 7,318,126
Liabilities
Accounts payable and accrued liabilities 10,652,362 — — 336,000 336,000 10,988,362
Government grant liabilities 979,105 430,589 — — 430,589 1,409,694
Shareholders’ equity (deficiency)
Deficit (431,492,229 ) (514,887 ) 99,518 (434,000 ) (849,369 ) (432,341,598 )
Non-controlling interests (5,561,151 ) (339,933 ) — — (339,933 ) (5,901,084 )
Adjustments
Consolidated statements of loss for the year ended
September 30, 2022 As previously Government Development Others Total As restated
Cost of sales 5,241,718 — — 69,000 69,000 5,310,718
General and administrative expenses 15,358,226 — — 190,067 190,067 15,548,293
Research and development costs 21,673,205 403,656 32,050 (51,000 ) 384,706 22,057,911
Finance
costs, net (1) (9,945,296 ) 50,915 (140,000 ) — (89,085 ) (10,034,381 )
Net loss and comprehensive loss (72,864,057 ) (454,571 ) 107,950 (208,067 ) (554,688 ) (73,418,745 )
Net loss attributable to the equity holder of the parent (68,943,994 ) (274,737 ) 107,950 (208,067 ) (374,854 ) (69,318,848 )
Net loss attributable to non-controlling interests (3,920,063 ) (179,834 ) — — (179,834 ) (4,099,897 )
Net loss per common share, basic and
diluted, attributable to the equity holder of the parent (511.03 ) — — — (2.78 ) (513.80 )
(1) The adjustments to finance costs, net, resulted for fiscal year ended September 30, 2022, in an increase of accretion of government grant liability interest expenses of $4,984 and foreign exchange loss of $50,915.
Adjustments
Consolidated statements of loss for the year ended
September 30, 2021 As previously Government Development Others Total As restated
Cost of sales 5,261,390 — — (3,000 ) (3,000 ) 5,258,390
General and administrative expenses 11,700,922 — 95,000 145,933 240,933 11,941,855
Research and development costs 10,206,764 397,607 571,367 51,000 1,019,974 11,226,737
Finance
costs, net (2) 11,694,852 2,643 112,066 (114,000 ) 709 11,695,561
Net loss and comprehensive loss (47,598,378 ) (400,249 ) (778,433 ) (79,933 ) (1,258,615 ) (48,856,993 )
Net loss attributable to the equity holder of the parent (45,860,522 ) (240,150 ) (778,433 ) (79,933 ) (1,098,516 ) (46,959,038 )
Net loss attributable to non-controlling interests (1,737,856 ) (160,099 ) — — (160,099 ) (1,897,955 )
Net loss per common share, basic and
diluted, attributable to the equity holder of the parent (706.13 ) — — — (16.91 ) (723.05 )
(2) The adjustments to finance costs, net, resulted for fiscal year ended September 30, 2021, in an increase of accretion of government grant liability interest expenses of $29,942 and foreign exchange loss of $2,643.
Consolidated statements
of cash flows for the year ended September 30, 2022 As previously Adjustments As restated
Operating activities
Loss before income taxes (72,864,057 ) (554,688 ) (73,418,745 )
Amortization of intangible assets 308,064 (51,000 ) 257,064
Finance costs, net (7,236,716 ) (140,000 ) (7,376,716 )
Other costs 145,933 (145,933 ) —
Foreign exchange gain (1,807,450 ) 50,915 (1,756,535 )
Net change in non-cash working capital items (1,016,971 ) 625,163 (391,808 )
Net cash flows related to operating activities (37,911,354 ) (215,543 ) (38,126,897 )
Investing Activities
Grants received related to intangible assets and property
and equipment 949,609 36,686 986,295
Net cash flows related to investing activities (12,037,428 ) 36,686 (12,000,742 )
Financing activities
Government grant liability issuance — 178,857 178,857
Net cash flows related to financing activities 73,768,733 178,857 73,947,590
Consolidated statement
of cash flows for the year ended September 30, 2021 As previously Adjustments As restated
Operating activities
Net loss (47,598,378 ) (1,258,615 ) (48,856,993 )
Amortization of intangible assets 412,784 51,000 463,784
Finance costs, net 11,549,151 (1,934 ) 11,547,217
Other costs — 145,933 145,933
Foreign exchange gain (101,939 ) 2,643 (99,296 )
Net change in non-cash working capital items 2,755,712 744,116 3,499,828
Net cash flows related to operating activities (20,472,490 ) (316,857 ) (20,789,347 )
Investing Activities
Grants received related to intangible assets and property
and equipment 515,588 125,445 641,033
Net cash flows related to investing activities (16,631,435 ) 125,445 (16,505,990 )
Financing activities
Government grant liability issuance — 191,412 191,412
Net cash flows related to financing activities 41,547,256 191,412 41,738,668 Basis of consolidation These consolidated financial statements
include the accounts of the Company and those of its subsidiaries. The Company’s subsidiaries are as follows:
Name of subsidiary Place of incorporation and operation Proportion of ownership September 30,
2023 2022
LeddarTech USA Inc U.S. 100 % 100 %
LeddarTech (Shenzhen) Sensing Technology Co., Ltd China 100 % 100 %
Vayavision Sensing, Ltd. (“Vayavision”) Israel 60 % 60 %
LeddarTech Germany GmbH Germany 100 % 100 %
LeddarTech Holdings Inc. Canada 100 % N.A. The Company consolidates investees
when, based on the evaluation of the substance of the relationship with the Company, it concludes that it controls the investees. The
Company controls an investee when it is exposed, or has rights, to variable returns from its involvement with the investee, has power
over the investee (i.e., existing rights that give it the current ability to direct the relevant activities of the investee), and has
the ability to affect those returns through its power over the investee. When necessary, adjustments are made
to the financial statements of subsidiaries to bring their accounting policies in line with the Company’s accounting policies.
All intercompany balances and transactions are eliminated upon consolidation. When a subsidiary is not wholly owned,
the Company recognizes the non-controlling interests’ (“NCI”) share of the net assets and results of operations in
the subsidiary. A change in ownership interest of a subsidiary, without a loss of control, is accounted for as an equity transaction. Foreign currency translation a) Functional and presentation currency These consolidated financial statements
are presented in Canadian dollars, which is also the Company’s functional currency. The Company determines the functional currency
of each foreign operation and items included in the financial statements of each foreign operation are measured using that functional
currency. The Canadian dollar is the functional currency of all foreign operations. b)
Transactions and balances Foreign currency transactions are translated
into the functional currency using the exchange rates prevailing at the transaction date. Foreign exchange gains and losses resulting
from the settlement of foreign currency transactions and from the translation at the year-end exchange rates of monetary assets and liabilities
denominated in currencies other than the functional currency are reflected in the consolidated statement of loss. Financial
instruments
a) Recognition and derecognition Financial instruments are recognized
in the consolidated statement of financial position when the Company becomes a party to the contractual obligations of the instrument.
On initial recognition, financial instruments are recognized at their fair value, and in the case of financial liabilities not at fair
value through profit or loss (“FVTPL”), net of transaction costs that are directly attributable to the issue of such financial
liabilities. Financial assets are subsequently derecognized
when payment is received in cash or other financial assets or if the debtor is discharged of its liability. A financial liability is derecognized
when the obligation under the liability is discharged or cancelled or expires. When the terms of the liability are substantially modified,
such modification is treated as a debt extinguishment and results in the derecognition of the original liability and the recognition of
a new liability at fair value. The difference in the respective carrying amounts is recognized in the consolidated statement of loss.
If an exchange of debt instruments or modification of terms is accounted for as an extinguishment,
any costs or fees incurred are recognised as part of the gain or loss on the extinguishment. If the exchange or modification is not accounted
for as an extinguishment, any costs or fees incurred adjust the carrying amount of the liability and are amortised over the remaining
term of the modified liability.
b) Classification Subsequent to initial recognition,
financial instruments are measured according to the category to which they are classified. Financial instruments are classified and measured
at amortized cost, or classified at FVTPL or designated at FVTPL, in which case they are subsequently measured at fair value. The classification of financial assets
and liabilities is driven by the Company’s business model for managing the assets or liabilities and their contractual cash flow
characteristics. Financial assets that are held to collect contractual cash flows where those cash flows represent solely payments of
principal and interest are measured at amortized cost. Financial liabilities are measured at amortized cost, unless the Company has opted
to measure them at FVTPL. The Company classifies cash and trade
receivable and other receivables (excluding commodity taxes receivable) as financial assets measured at amortized cost and accounts payable
and accrued liabilities (excluding deferred revenue), term loan, credit facility, convertible notes, other loan and the government grant
liabilities as financial liabilities measured at amortized cost. The call options (note 18a) held by
the Company are classified as a derivative financial asset measured at FVTPL. The put option (note 18a) is classified as a non-derivative
equity instrument, initially recorded at fair value, and subsequently at cost.
c) Impairment of financial instruments The expected credit losses associated
with debt instruments carried at amortized cost is assessed on a forward-looking basis. For trade accounts receivable, the Company applies
a simplified approach in calculating expected credit losses and does not track changes in credit risk, but instead recognizes a loss allowance
based on lifetime expected credit losses at each reporting date.
Inventories Raw materials and finished goods are
recorded at the lower of cost and net realizable value. Cost is determined using the first-in, first-out method. The cost of finished
goods includes the cost of direct materials and labour and a proportion of manufacturing overhead costs based on normal operating capacity.
The net realizable value is defined as the estimated selling price in the ordinary course of business less the estimated costs of completion
and the estimated costs necessary to make the sale. Inventories are written down to net
realizable value when the cost of inventories is estimated to be unrecoverable due to obsolescence, damage or declining selling prices.
If a decline in the price of raw materials indicates that the cost of the finished goods exceeds net realizable value, the raw materials
are written down to the replacement cost of the materials, which is the best available measure of the net realizable value. When circumstances
that previously caused inventories to be written down below cost no longer exist or when there is a clear evidence of an increase in selling
prices, the amount of the previously recorded write-down is reversed, without exceeding original cost. Property
and equipment Property and equipment are initially
recorded at cost and subsequently measured at cost, less accumulated depreciation and impairment. Depreciation is calculated using the
straight-line method over the assets’ estimated useful lives as follows:
Computer equipment 3 years
Office furniture and equipment 5 years
R&D equipment and tools 5 years
Stands and moulds 4 and 10 years
Leasehold improvements Term of lease
Vehicles 5 years Estimated useful life and depreciation
method are reviewed at the end of each reporting period, with the effect of any changes in estimates being accounted for on a prospective
basis. The depreciation of property and equipment is recognized in the consolidated statement of loss in the expense category that is
consistent with the function of the property and equipment or capitalized as development costs.
Leases The Company assesses
at contract inception whether a contract is, or contains, a lease; that is, if the contract conveys the right to control the use
of an identified asset for a period of time in exchange for consideration. The Company applies a single
recognition and measurement approach for all leases, except for short-term leases and leases of low-value assets. The Company recognizes right-of-use
assets at the commencement date of the lease. Right-of-use assets are measured at cost, less any accumulated depreciation and impairment
losses, and adjusted for any remeasurement of lease liabilities. The cost of right-of-use assets includes the amount of lease liabilities recognized
and any initial direct costs. Right-of-use assets are depreciated on a straight-line basis over the shorter of the lease term, including
renewal options the Company is reasonably certain to exercise, and the estimated useful lives of the assets as follows:
Office premises 3 to 15 years
Other equipment 3 to 5 years The depreciation of right-of-use assets
is recognized in the consolidated statement of loss in the expense category that is consistent with the function of the right-of-use asset
or capitalized as development costs. At the commencement date of the lease,
the Company recognizes lease liabilities measured at the present value of lease payments to be made over the lease
term, which includes the net present value of fixed payments and the value of any options to extend a lease where the Company is reasonably
certain to do so. In calculating the present value of lease payments, the Company uses the interest rate implicit in the lease
or, if that rate cannot be readily determined, the Company’s incremental borrowing rate. After the commencement date, the amount
of lease liabilities is increased to reflect the accretion of interest and reduced for the lease payments made. Lease payments on short-term leases with
lease terms of less than 12 months or low-value leases are accounted for as expenses on a straight-line basis in the consolidated statement
of loss. Variable lease payments that do not depend on an index or a rate are recognized as expenses (unless they are incurred to produce
inventories) in the period in which the event or condition that triggers the payment occurs. Business combinations and goodwill Business combinations are accounted
for using the acquisition method. Acquisition-related costs are expensed as incurred. The Company determines that it has acquired
a business when the acquired set of activities and assets include at least an input and a substantive process that together significantly
contribute to the ability to create outputs. The acquired process is considered substantive if it is critical to the ability to continue
producing outputs, and the inputs acquired include an organized workforce with the necessary skills, knowledge, or experience to perform
that process or it significantly contributes to the ability to continue producing outputs and is considered unique or scarce or cannot
be replaced without significant cost, effort, or delay in the ability to continue producing outputs. When the Company acquires a business,
it assesses the financial assets and liabilities assumed for appropriate classification and designation in accordance with the contractual
terms, economic circumstances and pertinent conditions as at the acquisition date. This includes the separation of embedded derivatives
in host contracts by the acquiree. Goodwill is initially measured at cost
(being the excess of the aggregate of the consideration transferred and the amount recognized for non-controlling interests (“NCI”)
over the fair value of net identifiable assets acquired and liabilities assumed). Subsequently, goodwill is measured at cost less any
accumulated impairment losses. Intangible assets Intangible assets consist of patents,
licenses, software, others and development costs with finite useful lives. Intangible assets are initially recorded at cost and subsequently
measured at cost, less accumulated amortization and impairment. In regard to patents, costs are capitalized during the application period
and are being amortized from the grant date over the residual life of the patent, which does not exceed 20 years from the application
date. Amortization
is calculated using the straight-line method over the assets’ estimated useful lives as follows:
Patents Life of the patent
Licenses 10 and 18 years
Software 3 years
Others 10 years
Development costs Period of expected future sales from the related project 1
1 Amortization of the asset begins when development is completed,
and the asset is available for use. Estimated useful life and the amortization
method are reviewed at the end of each reporting period, with the effect of any changes in estimates being accounted for on a prospective
basis. The amortization expense on intangible assets with finite useful lives is recognized in the consolidated statement of loss in the
expense category that is consistent with the function of the intangible assets or capitalized as development costs. Borrowing costs directly attributable
to the acquisition, construction or production of an asset that take a substantial period of time to get ready for its intended use or
sale are capitalized as part of the cost of the asset. Developments costs related to the Company’s projects to develop and enhance
the technology and capabilities of autonomous driving applications and advanced driver assistance systems (“ADAS”) are considered
to be qualified assets eligible for borrowing costs capitalization. Borrowing costs consist of interest expense calculated using the effective
interest method (this includes the effective interest on term loans and other debts including an implicit interest on convertible loans
and credit facilities at FVTPL), interest on lease liabilities and other issuance costs that are incurred in connection with the borrowing
of funds. Borrowing costs do not include gain or loss on revaluation of instruments carried at fair value. When the Company borrows funds
specifically to obtain a particular qualifying asset, the borrowing costs that are directly related to that qualifying asset during the
period are capitalized. When the Company borrows funds generally and uses them for the purpose of obtaining a qualifying asset, the
Company determines the amount of borrowing costs eligible for capitalization by applying a capitalization rate to the expenditures on
that asset. Expenditure on qualifying assets includes only the expenditure resulting in the payment of cash, the transfer of other assets
or the assumption of interest-bearing liabilities. The capitalization rate is the weighted average of the borrowing costs applicable to
all borrowings of the entity that are outstanding during the period. However, the Company excludes from this calculation borrowing costs
applicable to borrowings made specifically for the purpose of obtaining a qualifying asset until substantially all the activities necessary
to prepare that asset for its intended use or sale are complete. The amount of borrowing costs capitalized during a year shall not exceed
the amount of borrowing costs incurred during that year. Research
and development costs Research
costs are expensed as incurred. Development costs on an individual project are recognized as an intangible asset when the Company can
demonstrate:
● The technical feasibility of completing the intangible asset so that the asset will be available for use
or sale;
● Its intention to complete the asset and its ability and intention to use or sell the asset;
● How the asset will generate future economic benefits;
● The availability of resources to complete the project; and
● The ability to measure the expenditure reliably during development. Impairment
of non-financial assets For the purposes of assessing impairment,
assets are grouped in cash-generating units (“CGUs”), which represent the lowest levels for which there are separately identifiable
cash inflows generated by those assets. Property and equipment, intangible assets, goodwill and right-of-use assets are tested for impairment
when events or changes in circumstances indicate that the carrying amount may not be recoverable. In addition, development costs that
are not yet available for use and goodwill are tested for impairment annually, regardless of the presence of indicators of impairment.
In the case of indicators of impairment, or when a required annual test is performed, the asset’s recoverable amount is calculated
to establish the amount of impairment loss, if any. If it is not possible to determine the recoverable amount for an individual asset,
the recoverable amount of the asset’s CGU is then determined. The recoverable amount is the higher of an asset’s or CGU’s
fair value less cost of disposal and value in use. Fair value less costs of disposal represents the amount an entity could obtain at the
valuation date from the asset’s disposal in an arm’s length transaction between knowledgeable, willing parties, after deducting
the costs of disposal. Value in use is the present value of estimated future cash flows discounted at a pre-tax rate that reflects current
market assessments of the time value of money and the risks specific to the asset for which estimated future cash flows were not adjusted.
When the carrying amount of an asset or CGU exceeds its recoverable amount, the asset is considered impaired. An impairment loss is recognized in
the amount by which the carrying amount of an asset or CGU exceeds its recoverable amount. When the recoverable amount of a CGU to which
goodwill has been allocated is lower than the CGU’s carrying amount, the related goodwill is first impaired. Any excess amount of
impairment is recognized and attributed to assets in the CGU, prorated to the carrying amount of each asset in the CGU. In allocating
an impairment loss, the Company shall not reduce the carrying amount of an asset below the highest of its fair value less costs of disposal
(if measurable), its value in use (if determinable) and zero. The Company evaluates impairment losses
for potential reversals when events or circumstances require such considerations, except for goodwill. Government
grants and Research and development (“R&D”) tax credits Government grants
and Research and development (“R&D”) tax credits are recognized when there is reasonable assurance that the grant will
be received and all attached conditions will be complied and will continue to comply with all the conditions related to such assistance.
The Company recognizes the grants as other income or as a reduction of capital expenditures in the period that the related expenses or
expenditures are incurred.
Provisions Provisions are recognized when the Company
has a present obligation (legal or constructive) 1) as a result of a past event; 2) when it is more probable than not that an outflow
of resources embodying economic benefits will be required to settle the obligation; and, 3) when a reliable estimate can be made of the
amount of the obligation. The expense relating to any provision is accounted for in the consolidated statements of loss. If the known expected settlement date
exceeds twelve months from the date of recognition, provisions are discounted using a current pre-tax interest rate that reflects the
risks specific to the liability. Where discounting is used, the increase in the provision due to the passage of time is recognized as
a financial expense. Provisions are reviewed periodically and adjusted as appropriate. The provisions are related to onerous
contracts. These represent firm customer purchase orders in which the unavoidable costs of meeting the obligations under the contract
exceed the economic benefits expected to be received under it. The unavoidable costs are the cost of fulfilling the contracts. Government
grant liabilities Government grants that include a reimbursement
clause based on the Company sales of a specific program are accounted for as a financial liability. At initial recognition, the government
grant is estimated at the present value of all future cash disbursements. After the initial recognition, the government grant is measured
at amortized cost using the effective interest method. Assumptions underlying expected sales are reviewed annually and are used to derive
expected repayment schedules. When the expected repayment schedule changes, the Company recalculates the carrying value of the government
grant liability using the original effective interest rate, with the corresponding gain or loss accounted for in financial expenses. Capital stock The Company classifies a financial instrument,
or its component part, as a financial liability, a financial asset or an equity instrument in accordance with the substance of the contractual
arrangement and the definitions of a financial liability, a financial asset and an equity instrument. In order to determine whether a
financial instrument is an equity instrument rather than a financial liability, the instrument is an equity instrument if, and only if:
a) the instrument includes no contractual obligation to deliver cash or another financial asset to another entity or to exchange financial
assets or financial liabilities with another entity under conditions that are potentially unfavourable to the Company and b) if the instrument
will or may be settled in the Company’s own equity instruments, it is i) a non-derivative that includes no contractual obligation for
the Company to deliver a variable number of its own equity instruments, or ii) a derivative that will be settled only by the Company exchanging
a fixed amount of cash or another financial asset for a fixed number of its own equity instruments. The Company determined that its preferred
shares containing conversion features as a whole are a non-derivative instrument. Share-based
compensation For equity-settled share-based payment
transactions with parties other than employees, the Company measures the goods or services received, and the corresponding increase in
equity, directly, at the fair value of the goods or services received, unless that fair value cannot be estimated reliably. For transaction
with parties other than employees, there is a rebuttable presumption that the fair value of the goods or services received can be estimated
reliably. If the Company cannot estimate reliably the fair value of the goods or services received, the Company measures their value,
and the corresponding increase in equity, indirectly, by reference to the fair value of the equity instruments granted. Any transactions
costs incurred are expensed in the consolidated statements of loss. The Company also offers equity-settled
and cash-settled share-based compensation plans to its employees and directors, under which the Company receives services as consideration
for equity instruments of the Company. The Company accounts for all forms of stock-based compensation using the fair value-based method. a) Equity-settled compensation The fair value of stock options is determined
at the date of the grant using the Black-Scholes option pricing model. Where granted stock options vest in instalments over the vesting
period (defined as graded vesting), the Company treats each instalment as a separate stock option grant. The cumulative expense recognized for
equity-settled transactions at each reporting date until the vesting date reflects the extent to which the vesting period has expired
and the Company’s best estimate of the number of equity instruments that will ultimately vest. The expense in the consolidated statement
of loss for a period represents the movement in cumulative expense recognized at the beginning and end of that period and is credited
to “Reserve – stock options.” No expense is recognized for awards that do not ultimately vest because non-market performance
and/or service conditions have not been met. Any consideration received by the Company in connection with the exercise of stock options
is credited to “Capital stock.” Upon issuance of the shares, amounts recognized in “Reserve – stock options”
are transferred to “Capital stock.” b) Cash-settled compensation A liability is recognized for the fair
value of cash-settled transactions. The fair value is measured initially and at each reporting date up to and including the settlement
date, with changes in fair value recognized in the consolidated statement of loss to the extent the employees have rendered service to
date. Defined contribution pension plans The Company offers a defined contribution
pension plan to its Canadian employees. The Company pays an annual contribution amounting to 3% of employee eligible salary on a civil
year basis and has no legal or constructive obligation to pay further amounts. As a result, no related liability appears on the consolidated
statement of financial position, except for the expense recognized for contributions due but not yet paid at the end of the reporting
period. Contributions paid and payable to the defined contribution plan are expensed as incurred. The Company’s contribution related
to the defined contribution plan for the year ended September 30, 2023, amounted to $283,545 ($400,658 in 2022), a portion of which was
capitalized as intangible assets. Additionally, the Company offers a defined
contribution pension plan to employees of its Israeli subsidiary, which complies with the local laws in that country. The Company pays
an annual contribution amounting to 8.33% of the employee eligible salary towards the severance pay component. The Company pays
an annual contribution amounting to 6.5% of the employee eligible salary towards the pension component. The Company’s contribution
related to the Israeli subsidiary defined contribution plan for the year ended September 30, 2023, amounted to $1,057,881 ($1,101,890
in 2022), a portion of which was capitalized as intangible assets. Revenue
recognition Revenue from contracts with customers
is recognized for each performance obligation, either over a period of time or at a point of time, depending on which method reflects
the transfer of controls of the services underlying the particular performance obligation to the customer. Revenue from sales of products in the
consolidated statement of loss is recognized at the point in time when the Company has transferred control of the products to the buyer,
which is generally on delivery of the product. The Company generally has a right to payment at the time of delivery, which is the same
time that the Company has satisfied its performance obligation under the arrangement, as such a receivable is recognized as the consideration
is unconditional and only the passage of time is required before the payment is due. Consideration received from customers
for which the Company has an obligation to transfer products or services is recorded as a deferred revenue. Income taxes
a) Current income taxes Current income |
