| For the fiscal year ended December 31, 2020 | | | Commission File Number: 001-36458 | |
|
Canada
|
| |
3841
|
| |
Not Applicable
|
|
|
(Province or other jurisdiction
of incorporation or organization) |
| |
(Primary Standard Industrial
Classification Code Number) |
| |
(I.R.S. Employer
Identification Number) |
|
| |
Title of Each Class
|
| | |
Trading Symbol
|
| | |
Name of Each Exchange on Which Registered
|
| |
| |
Common Shares, No Par Value
|
| | |
NVCN
|
| | |
Nasdaq Capital Market
|
| |
|
☒ Annual information form
|
| |
☒ Audited annual financial statements
|
|
| | |
Payments due by period (in thousands)
|
| |||||||||||||||||||||||||||
Contractual Obligations
|
| |
Total
|
| |
Less than 1 year
|
| |
1 – 3 years
|
| |
3 – 5 years
|
| |
More than 5 years
|
| |||||||||||||||
Long-Term Debt Obligations
|
| | | | 7,717 | | | | | | 76 | | | | | | 7,641 | | | | | | — | | | | | | — | | |
Capital (Finance) Lease Obligations
|
| | | | 1,150 | | | | | | 485 | | | | | | 665 | | | | | | — | | | | | | — | | |
Operating Lease Obligations
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Purchase Obligations
|
| | | | 3,706 | | | | | | 3,706 | | | | | | — | | | | | | — | | | | | | — | | |
Other Long-Term Liabilities
|
| | | | 1,250 | | | | | | 1,250 | | | | | | — | | | | | | — | | | | | | — | | |
Total
|
| | | | 13,823 | | | | | | 5,517 | | | | | | 8,306 | | | | | | — | | | | | | — | | |
Exhibit
Number |
| |
Description
|
|
99.1 | | | | |
99.2 | | | | |
99.3 | | | | |
99.4 | | | | |
99.5 | | | Certificate of Chief Financial Officer required by Rule 13a-14(a) or Rule 15d-14(a), pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 | |
99.6 | | | | |
99.7 | | | | |
101 | | | Interactive Data File | |
| Date: March 11, 2021 | | |
NEOVASC INC.
|
|
| | | |
By:
/s/ Chris Clark
Name: Chris Clark
Title: Chief Financial Officer |
|
| | | | | 2 | | | |
| | | | | 3 | | | |
| | | | | 4 | | | |
| | | | | 8 | | | |
| | | | | 8 | | | |
| | | | | 9 | | | |
| | | | | 11 | | | |
| | | | | 22 | | | |
| | | | | 22 | | | |
| | | | | 23 | | | |
| | | | | 23 | | | |
| | | | | 24 | | | |
| | | | | 24 | | | |
| | | | | 25 | | | |
| | | | | 25 | | | |
| | | | | 25 | | | |
| | | | | 26 | | | |
| | | | | 26 | | | |
| | | | | 44 | | | |
| | | | | 44 | | | |
| | | | | 52 | | | |
| | | | | 55 | | | |
| | | | | 55 | | | |
| | | | | 58 | | | |
| | | | | 59 | | | |
| | | | | 59 | | | |
| | | | | 59 | | | |
| | | | | 59 | | | |
| | | | | 59 | | | |
| | | | | 61 | | | |
| | | | | 61 | | | |
| | | | | 62 | | | |
| | | | | 65 | | | |
| | | | | 67 | | | |
| | | | | 68 | | | |
| | | | | 68 | | | |
| | | | | 68 | | | |
| | | | | A-1 | | |
Name:
|
| |
Date of Incorporation:
|
| |
Jurisdiction of Incorporation:
|
|
Neovasc Medical Inc.
(formerly PM Devices Inc.) (“NMI”) |
| | May 7, 1998 | | | British Columbia | |
Neovasc (US) Inc.
(formerly Medical Ventures (US) Inc.) |
| | July 2, 2007 | | | United States | |
Neovasc GmbH | | | August 14, 2017 | | | Germany | |
Neovasc Management Inc. | | | January 23, 2018 | | | United States | |
Neovasc Tiara Inc. (“NTI”) | | | March 11, 2013 | | | Canada (federal) | |
Neovasc Medical Ltd. (“NML”) | | | September 9, 2002 | | | Israel | |
B-Balloon Ltd. | | | March 30,2004 | | | Israel | |
| | |
December 31,
|
| |||||||||||||||
| | |
2020
|
| |
2019
|
| |
2018
|
| |||||||||
Employees and consultants by geographic location: | | | | | | | | | | | | | | | | | | | |
Canada
|
| | | | 48 | | | | | | 76 | | | | | | 68 | | |
United States
|
| | | | 19 | | | | | | 27 | | | | | | 24 | | |
Europe
|
| | | | 4 | | | | | | 7 | | | | | | 6 | | |
Total number of employees and consultants
|
| | | | 71 | | | | | | 110 | | | | | | 98 | | |
Month
|
| |
High
|
| |
Low
|
| |
Close
|
| |
Total Volume
|
|
February 2020
|
| |
C$4.15
|
| |
C$3.13
|
| |
C$3.45
|
| |
383,473
|
|
March 2020
|
| |
C$3.82
|
| |
C$1.98
|
| |
C$2.08
|
| |
262,720
|
|
April 2020
|
| |
C$5.30
|
| |
C$1.78
|
| |
C$3.51
|
| |
571,845
|
|
May 2020
|
| |
C$4.26
|
| |
C$3.26
|
| |
C$3.97
|
| |
172,108
|
|
June, 2020
|
| |
C$4.50
|
| |
C$3.10
|
| |
C$3.25
|
| |
538,435
|
|
July, 2020
|
| |
C$3.65
|
| |
C$3.01
|
| |
C$3.41
|
| |
234,648
|
|
August, 2020
|
| |
C$4.05
|
| |
C$2.70
|
| |
C$2.82
|
| |
505,675
|
|
September 2020
|
| |
C$2.96
|
| |
C$2.70
|
| |
C$2.84
|
| |
139,769
|
|
October 2020
|
| |
C$3.48
|
| |
C$1.14
|
| |
C$1.24
|
| |
723,367
|
|
November 2020
|
| |
C$1.26
|
| |
C$0.95
|
| |
C$1.13
|
| |
941,741
|
|
December 2020
|
| |
C$1.43
|
| |
C$0.89
|
| |
C$1.23
|
| |
2,246,309
|
|
January 2021
|
| |
C$1.81
|
| |
C$1.14
|
| |
C$1.48
|
| |
2,324,217
|
|
February, 2021
|
| |
C$3.25
|
| |
C$1.46
|
| |
C$1.84
|
| |
7,592,800
|
|
March 1 to 10, 2021
|
| |
C$1.90
|
| |
C$1.19
|
| |
C$1.58
|
| |
2,235,709
|
|
Month
|
| |
High
|
| |
Low
|
| |
Close
|
| |
Total Volume
|
|
February 2020
|
| |
US$3.22
|
| |
US$2.36
|
| |
US$2.60
|
| |
748,779
|
|
March 2020
|
| |
US$2.85
|
| |
US$1.38
|
| |
US$1.46
|
| |
488,764
|
|
April 2020
|
| |
US$3.86
|
| |
US$1.25
|
| |
US$2.53
|
| |
1,269,962
|
|
May 2020
|
| |
US$3.09
|
| |
US$2.30
|
| |
US$2.88
|
| |
397,655
|
|
June, 2020
|
| |
US$3.37
|
| |
US$2.27
|
| |
US$2.38
|
| |
1,673,227
|
|
July, 2020
|
| |
US$2.71
|
| |
US$2.23
|
| |
US$2.56
|
| |
784,597
|
|
August, 2020
|
| |
US$3.05
|
| |
US$2.04
|
| |
US$2.17
|
| |
1,806,557
|
|
September 2020
|
| |
US$2.29
|
| |
US$2.05
|
| |
US$2.14
|
| |
527,263
|
|
October 2020
|
| |
US$2.65
|
| |
US$0.87
|
| |
US$0.93
|
| |
2,190,426
|
|
November 2020
|
| |
US$0.96
|
| |
US$0.71
|
| |
US$0.86
|
| |
1,607,197
|
|
December 2020
|
| |
US$1.14
|
| |
US$0.68
|
| |
US$0.95
|
| |
13,018,273
|
|
January 2021
|
| |
US$1.44
|
| |
US$0.89
|
| |
US$1.19
|
| |
5,834,928
|
|
February, 2021
|
| |
US$2.6
|
| |
US$1.13
|
| |
US$1.42
|
| |
270,867,500
|
|
March 1 to 10, 2021
|
| |
C$1.50
|
| |
C$0.93
|
| |
C$1.24
|
| |
4,667,898
|
|
Exercise Date
|
| |
Number of
Common Shares |
| |
Exercise
Price |
| ||||||
January 3, 2020
|
| | | | 50 | | | | | $ | 6.83 | | |
Total | | | | | 50 | | | | | $ | 6.83 | | |
Grant Date
|
| |
Number of
Options |
| |
Grant Price
|
| ||||||
January 20, 2020
|
| | | | 535,475 | | | | | $ | 3.35 | | |
June 22, 2020
|
| | | | 705,125 | | | | | $ | 2.42 | | |
August 13, 2020
|
| | | | 6,000 | | | | | $ | 2.27 | | |
September 22, 2020
|
| | | | 553,500 | | | | | $ | 2.11 | | |
October 7, 2020
|
| | | | 695,000 | | | | | $ | 2.17 | | |
Total | | | | | 2,495,100 | | | | | $ | 2.48 | | |
Vesting Date
|
| |
Number of
Common Shares |
| |||
December 2, 2020
|
| | | | 50,986 | | |
Total | | | | | 50,986 | | |
Grant Date
|
| |
Number of RSUs
|
| |||
January 23, 2020
|
| | | | 110,000 | | |
February 20, 2020
|
| | | | 220,000 | | |
June 22, 2020
|
| | | | 293,044 | | |
August 21, 2020
|
| | | | 8,000 | | |
October 7, 2020
|
| | | | 75,000 | | |
Total | | | | | 706,044 | | |
Issuance Date
|
| |
Type of Security
|
| |
Number of
Securities |
| |
Issue Price
|
| ||||||
January 6, 2020 | | | Common Shares related to June 2020 Units issued in connection with the June 2020 Offering | | | | | 2,426,490 | | | | | $ | 4.1351 | | |
January 6, 2020 | | | Warrants related to June 2020 Units issued in connection with the June 2020 Offering | | | | | 2,426,490 | | | | | | Nil | | |
January 6, 2020 | | | Compensation warrants issued in connection with the January 2020 Offering | | | | | 157,721 | | | | | | Nil | | |
May 19, 2020 | | | Common Shares issued on conversion of $1,001,000 of the 2017 Notes | | | | | 492,631 | | | | | $ | 2.03 | | |
May 26, 2020 | | |
Common Shares issued in connection with the Exchange
Agreement upon exchange of 672,937 warrant issued for the January 2020 Financing |
| | | | 672,937 | | | | | $ | 2.71 | | |
May 26, 2020 | | |
Common Shares issued on conversion of $15,000 of the
2017 Notes |
| | | | 7,383 | | | | | $ | 2.03 | | |
May 28, 2020 | | | 2020 Notes issued in connection with the May Offering | | | | $ | 4,000,000 | | | | | $ | 4,000,000 | | |
May 28, 2020 | | | Warrants issued in connection with the May Offering | | | | | 2,573,959 | | | | | | Nil | | |
May 28, 2020 | | | Settlement Warrants issued in connection with the Settlement Agreement | | | | | 500,000 | | | | | | Nil | | |
June 3, 2020 | | | 2020 Notes issued in connection with the May Offering | | | | $ | 1,000,000 | | | | | $ | 1,000,000 | | |
June 16, 2020 | | | Common Shares related to June 2020 Units issued in connection with the June 2020 Offering | | | | | 3,883,036 | | | | | $ | 2.97 | | |
June 16, 2020 | | | Warrants related to June 2020 Units issued in connection with the June 2020 Offering | | | | | 2,912,277 | | | | | | Nil | | |
June 16, 2020 | | | Compensation warrants issued in connection with the June 2020 Offering | | | | | 252,397 | | | | | | | | |
July 23, 2020 | | | Common Shares issued in connection with the May 2020 Warrant exercise | | | | | 1,424,049 | | | | | $ | 2.634 | | |
July 23, 2020 | | | Prepayment Warrants issued upon prepayment of the 2019 Note | | | | | 481,778 | | | | | | Nil | | |
August 12, 2020 | | | Common Shares related to August 2020 Units issued in connection with the August 2020 Offering | | | | | 4,532,772 | | | | | $ | 2.78 | | |
August 12, 2020 | | | Warrants related to August 2020 Units issued in connection with the August 2020 Offering | | | | | 3,399,579 | | | | | | Nil | | |
August 12, 2020 | | | Compensation warrants issued in connection with the August 2020 Offering | | | | | 294,630 | | | | | | Nil | | |
August 17, 2020 | | | Common Shares issued in connection with the May 2020 Warrant exercise | | | | | 501,000 | | | | | $ | 2.634 | | |
August 17, 2020 | | | August Prepayment Warrants issued upon prepayment of the 2019 Note | | | | | 168,518 | | | | | | Nil | | |
December 10, 2020 | | |
Common Shares related to December 2020 Units issued
in connection with the December 2020 Offering |
| | | | 6,230,803 | | | | | $ | 0.9801 | | |
December 10, 2020 | | | Warrants related to December 2020 Units issued in connection with the 2020 December Offering | | | | | 6,230,803 | | | | | | Nil | | |
December 10, 2020 | | | Compensation warrants issued in connection with the December 2020 Offering | | | | | 405,004 | | | | | | Nil | | |
Name
|
| |
Number of
Common Shares(1) |
| |
Percentage of
Outstanding Common Shares |
| |
Number of Options,
Restricted Share Units and Warrants(1) |
| |||||||||
Steven Rubin
|
| | | | 3,472 | | | | | | 0.01% | | | | | | 76,667 | | |
Paul Geyer
|
| | | | 127,116 | | | | | | 0.19% | | | | | | 76,667 | | |
Doug Janzen
|
| | | | 18,536 | | | | | | 0.03% | | | | | | 76,667 | | |
Alexei Marko
|
| | | | nil | | | | | | 0.00% | | | | | | 76,667 | | |
Norman Radow
|
| | | | 291,073 | | | | | | 0.43% | | | | | | 45,000 | | |
Fred Colen
|
| | | | 31,504 | | | | | | 0.05% | | | | | | 293,333 | | |
Bill Little
|
| | | | nil | | | | | | 0.00% | | | | | | 255,681 | | |
Chris Clark
|
| | | | 4,674 | | | | | | 0.01% | | | | | | 293,333 | | |
John Panton
|
| | | | 2,064 | | | | | | 0.00% | | | | | | 186,000 | | |
Vicki Bebeau
|
| | | | 3,039 | | | | | | 0.00% | | | | | | 196,000 | | |
TOTAL
|
| | | | 481,478 | | | | | | 0.72% | | | | | | 1,951,015 | | |
| | |
Year ended
December 31, 2020 |
| |
Year ended
December 31, 2019 |
|
Audit Fees
|
| |
C$391,130
|
| |
C$347,800
|
|
Tax Fees
|
| |
C$Nil
|
| |
C$Nil
|
|
All Other Fees
|
| |
C$Nil
|
| |
C$Nil
|
|
Total
|
| |
C$391,130
|
| |
C$347,800
|
|
| | |
December 31,
2020 |
| |
September 30,
2020 |
| |
June 30,
2020 |
| |
March 31,
2020 |
| ||||||||||||
REVENUE
|
| | | $ | 514,002 | | | | | $ | 626,418 | | | | | $ | 284,047 | | | | | $ | 532,895 | | |
COST OF GOODS SOLD
|
| | | | 96,504 | | | | | | 150,503 | | | | | | 74,669 | | | | | | 124,563 | | |
GROSS PROFIT
|
| | | | 417,498 | | | | | | 475,915 | | | | | | 209,378 | | | | | | 408,332 | | |
EXPENSES | | | | | | | | | | | | | | | | | | | | | | | | | |
Selling expenses
|
| | | | 692,089 | | | | | | 498,671 | | | | | | 452,514 | | | | | | 553,529 | | |
General and administrative expenses
|
| | | | 3,125,162 | | | | | | 4,642,979 | | | | | | 3,825,510 | | | | | | 2,487,502 | | |
Product development and clinical trials
expenses |
| | | | 5,785,748 | | | | | | 5,502,717 | | | | | | 4,589,724 | | | | | | 4,523,406 | | |
| | | | | 9,602,999 | | | | | | 10,644,367 | | | | | | 8,867,748 | | | | | | 7,564,437 | | |
OPERATING LOSS
|
| | | | (9,185,501) | | | | | | (10,168,452) | | | | | | (8,658,370) | | | | | | (7,156,105) | | |
Other (expense)/income
|
| | | | 4,231,989 | | | | | | (66,225) | | | | | | (1,268,020) | | | | | | 3,051,586 | | |
Tax (expense)/income
|
| | | | 530,054 | | | | | | — | | | | | | 1,075 | | | | | | (7,072) | | |
LOSS FOR THE PERIOD
|
| | | $ | (4,423,458) | | | | | $ | (10,234,677) | | | | | $ | (9,925,315) | | | | | $ | (4,111,591) | | |
BASIC AND DILLUTED LOSS PER
SHARE |
| | | $ | (0.18) | | | | | $ | (0.51) | | | | | $ | (0.81) | | | | | $ | (0.38) | | |
| | |
December 31,
2019 |
| |
September 30,
2019 |
| |
June 30,
2019 |
| |
March 31,
2019 |
| ||||||||||||
REVENUE
|
| | | $ | 565,821 | | | | | $ | 500,498 | | | | | $ | 439,920 | | | | | $ | 585,793 | | |
COST OF GOODS SOLD
|
| | | | 109,449 | | | | | | 137,999 | | | | | | 66,994 | | | | | | 143,994 | | |
GROSS PROFIT
|
| | | | 456,372 | | | | | | 362,499 | | | | | | 372,926 | | | | | | 441,799 | | |
EXPENSES | | | | | | | | | | | | | | | | | | | | | | | | | |
Selling expenses
|
| | | | 502,828 | | | | | | 380,412 | | | | | | 394,512 | | | | | | 368,233 | | |
General and administrative expenses
|
| | | | 2,671,418 | | | | | | 2,197,922 | | | | | | 2,463,461 | | | | | | 2,680,931 | | |
Product development and clinical trials
expenses |
| | | | 6,855,615 | | | | | | 4,777,197 | | | | | | 4,148,184 | | | | | | 4,239,963 | | |
| | | | | 10,029,861 | | | | | | 7,355,531 | | | | | | 7,006,157 | | | | | | 7,289,127 | | |
OPERATING LOSS
|
| | | | (9,573,489) | | | | | | (6,993,032) | | | | | | (6,633,231) | | | | | | (6,847,328) | | |
Other income/(expense)
|
| | | | (2,739,008) | | | | | | 775,550 | | | | | | (1,287,267) | | | | | | (1,804,417) | | |
Tax income/(expense)
|
| | | | (41,688) | | | | | | 15,505 | | | | | | (38,980) | | | | | | 36,370 | | |
INCOME/(LOSS) FOR THE PERIOD
|
| | | $ | (12,354,185) | | | | | $ | (6,201,977) | | | | | $ | (7,959,478) | | | | | $ | (8,615,375) | | |
BASIC AND DILLUTED (LOSS)/GAIN PER SHARE
|
| | | $ | (1.45) | | | | | $ | (0.83) | | | | | $ | (1.17) | | | | | $ | (2.10) | | |
| | |
December 31,
2019 |
| |
September 30,
2019 |
| |
June 30,
2019 |
| |
March 31,
2019 |
| ||||||||||||
REVENUE
|
| | | $ | 523,424 | | | | | $ | 480,540 | | | | | $ | 405,247 | | | | | $ | 339,922 | | |
COST OF GOODS SOLD
|
| | | | 93,519 | | | | | | 96,743 | | | | | | 88,603 | | | | | | 87,393 | | |
GROSS PROFIT
|
| | | | 429,905 | | | | | | 383,797 | | | | | | 316,644 | | | | | | 252,529 | | |
EXPENSES | | | | | | | | | | | | | | | | | | | | | | | | | |
Selling expenses
|
| | | | 614,742 | | | | | | 202,947 | | | | | | 248,538 | | | | | | 286,938 | | |
General and administrative expenses
|
| | | | 5,415,634 | | | | | | 6,340,747 | | | | | | 2,213,464 | | | | | | 2,469,091 | | |
Product development and clinical trials expenses
|
| | | | 4,653,122 | | | | | | 3,490,696 | | | | | | 3,858,255 | | | | | | 3,999,391 | | |
| | | | | 10,683,498 | | | | | | 10,034,390 | | | | | | 6,320,257 | | | | | | 6,755,420 | | |
OPERATING LOSS
|
| | | | (10,253,593) | | | | | | (9,650,593) | | | | | | (6,003,613) | | | | | | (6,502,891) | | |
Other income/(expense)
|
| | | | 21,862,040 | | | | | | (4,932,151) | | | | | | (43,071,578) | | | | | | (49,324,003) | | |
Tax income/(expense)
|
| | | | 70,961 | | | | | | (54,000) | | | | | | (70,400) | | | | | | (53,654) | | |
INCOME/(LOSS) FOR THE PERIOD
|
| | | $ | 11,679,408 | | | | | $ | (14,636,744) | | | | | $ | (49,145,591) | | | | | $ | (55,880,548) | | |
BASIC AND DILLUTED (LOSS)/GAIN PER SHARE
|
| | | $ | 5.07 | | | | | $ | (7.80) | | | | | $ | (36.59) | | | | | $ | (385.90) | | |
| | | | | |
PROPOSED USE OF NET
PROCEEDS |
| | |
ACTUAL USE OF NET PROCEEDS
|
| | |||||||||||||
| | | | | |
August 2020 $11.3M
Equity Financing |
| | |
Use of Proceeds
|
| | |
Remaining to be Spent
|
| | |||||||||
| |
Continuing operations
|
| | | | $ | 11,226,658 | | | | | | $ | 3,529,709 | | | | | | $ | 7,696,949 | | | |
| |
NET PROCEEDS
|
| | | | $ | 11,226,658 | | | | | | $ | 3,529,709 | | | | | | $ | 7,696,949 | | | |
| | | | | |
PROPOSED USE OF NET
PROCEEDS |
| | |
ACTUAL USE OF NET PROCEEDS
|
| | |||||||||||||
| | | | | |
December 2020 $6.2M
Equity Financing |
| | |
Use of Proceeds
|
| | |
Remaining to be Spent
|
| | |||||||||
| |
Continuing operations
|
| | | | $ | 5,238,911 | | | | | | $ | NIL | | | | | | $ | 5,238,911 | | | |
| |
NET PROCEEDS
|
| | | | $ | 5,238,911 | | | | | | $ | NIL | | | | | | $ | 5,238,911 | | | |
Level 1
|
|
|
Quoted prices (unadjusted) in active markets for identical assets or liabilities |
Level 2
|
|
|
Inputs other than quoted prices included in level 1 that are observable for the asset or liability, either directly (that is, as prices) or indirectly (that is, derived from prices) |
Level 3
|
|
|
Inputs for the assets or liability that are not based on observable market data (that is, unobservable inputs) |
| | |
Level 1
|
| |
Level 2
|
| |
Level 3
|
| |
Total
|
| ||||||||||||
Financial liabilities at fair value through profit and loss | | | | | | | | | | | | | | | | | | | | | | | | | |
2017 Convertible Notes
|
| | | $ | — | | | | | $ | — | | | | | $ | 14,617,336 | | | | | $ | 14,617,336 | | |
Derivative warrant financial liability from financing
|
| | | $ | — | | | | | $ | — | | | | | $ | 190,303 | | | | | $ | 190,303 | | |
| | |
Level 1
|
| |
Level 2
|
| |
Level 3
|
| |
Total
|
| ||||||||||||
Financial liabilities at fair value through profit and loss | | | | | | | | | | | | | | | | | | | | | | | | | |
2017 Convertible Notes
|
| | | $ | — | | | | | $ | — | | | | | $ | 5,400,189 | | | | | $ | 5,400,189 | | |
2019 Convertible Notes
|
| | | $ | — | | | | | $ | — | | | | | $ | 9,265,480 | | | | | $ | 9,265,480 | | |
| | |
Level 1
|
| |
Level 2
|
| |
Level 3
|
| |
Total
|
| ||||||||||||
Financial liabilities at fair value through profit and loss | | | | | | | | | | | | | | | | | | | | | | | | | |
2019 Convertible Notes
|
| | | $ | — | | | | | $ | — | | | | | $ | 6,195,357 | | | | | $ | 6,195,357 | | |
2020 Convertible notes and warrants and derivative warrant liabilities
|
| | | $ | — | | | | | $ | — | | | | | $ | 1,522,054 | | | | | $ | 1,522,054 | | |
| | |
Note
|
| |
2020
|
| |
2019
|
| |
2018
|
| |||||||||
Amortized cost | | | | | | | | | | | | | | | | | | | | | | |
Cash and cash equivalents
|
| |
6
|
| | |
$
|
12,935,860
|
| | | | $ | 5,292,833 | | | | | $ | 9,242,809 | | |
Accounts receivable
|
| |
7
|
| | |
|
987,057
|
| | | | | 715,696 | | | | | | 647,143 | | |
Restricted cash
|
| |
11
|
| | |
|
470,460
|
| | | | | 462,874 | | | | | | 439,736 | | |
| | | | | | |
$
|
14,393,377
|
| | | | $ | 6,471,403 | | | | | $ | 10,329,688 | | |
Other financial liabilities at amortized cost | | | | | | | | | | | | | | | | | | | | | | |
Accounts payable and accrued liabilities (current)
|
| |
14
|
| | |
$
|
7,243,500
|
| | | | $ | 7,794,456 | | | | | $ | 4,610,560 | | |
Accounts payable and accrued liabilities
(non-current) |
| |
14
|
| | |
|
—
|
| | | | | 1,186,601 | | | | | | 2,241,979 | | |
Financial liabilities at fair value through profit and loss | | | | | | | | | | | | | | | | | | | | | | |
2017 Convertible Notes (current)
|
| |
16(b)
|
| | |
$
|
—
|
| | | | $ | 5,400,189 | | | | | $ | 1,423,224 | | |
2017 Convertible Notes (non-current)
|
| |
16(b)
|
| | |
|
—
|
| | | | | — | | | | | | 13,194,112 | | |
2017 Derivative warrant liability (current)
|
| |
16(b)
|
| | |
|
—
|
| | | | | — | | | | | | 190,303 | | |
2019 Convertible Notes (current)
|
| |
16(c)
|
| | |
|
38,633
|
| | | | | 1,090,561 | | | | | | — | | |
2019 Convertible Notes (non-current)
|
| |
16(c)
|
| | |
|
6,156,724
|
| | | | | 8,174,919 | | | | | | — | | |
2020 Convertible Notes (current)
|
| |
16(d)
|
| | |
|
37,525
|
| | | | | — | | | | | | — | | |
2020 Convertible notes and warrants and derivative warrant liabilities (non-current)
|
| |
16(d)
|
| | |
|
1,484,529
|
| | | | | — | | | | | | — | | |
| | | | | | |
$
|
14,960,911
|
| | | | $ | 23,646,726 | | | | | $ | 21,660,178 | | |
| | |
Total
|
| |||
Current
|
| | |
$
|
1,612,254
|
| |
31 – 60 days
|
| | |
|
869,498
|
| |
Over 60 days
|
| | |
|
1,223,874
|
| |
| | | | $ | 3,705,626 | | |
| | |
Within One Year
|
| |
Between One and Two Years
|
| ||||||
Collaboration, license and settlement agreements
(undiscounted) |
| | |
$
|
1,250,000
|
| | | |
$
|
—
|
| |
| | | | $ | 1,250,000 | | | | | $ | — | | |
| | |
Page
|
|
Report of Independent Registered Public Accounting Firm
|
| | | |
| | | ||
| | | ||
| | | ||
| | | ||
Notes to the Consolidated Financial Statements
|
| | |
|
Vancouver, Canada
March 10, 2021 |
| | | | |
Chartered Professional Accountants
|
|
| | |
Notes
|
| |
2020
|
| |
2019
|
| |
2018
|
| |||||||||
ASSETS | | | | | | | | | | | | | | | | | | | | | | |
Current assets
|
| | | | | | | | | | | | | | | | | | | | | |
Cash and cash equivalents
|
| |
6
|
| | |
$
|
12,935,860
|
| | | | $ | 5,292,833 | | | | | $ | 9,242,809 | | |
Accounts receivable
|
| |
7
|
| | |
|
987,057
|
| | | | | 715,696 | | | | | | 647,143 | | |
Finance lease receivable
|
| |
8
|
| | |
|
95,849
|
| | | | | 86,764 | | | | | | — | | |
Inventory
|
| |
9
|
| | |
|
839,472
|
| | | | | 618,650 | | | | | | 318,135 | | |
Research and development supplies
|
| |
9
|
| | |
|
167,378
|
| | | | | 671,845 | | | | | | 1,274,653 | | |
Prepaid expenses and other assets
|
| |
10
|
| | |
|
705,471
|
| | | | | 630,042 | | | | | | 591,236 | | |
Total current assets
|
| | | | | |
|
15,731,087
|
| | | | | 8,015,830 | | | | | | 12,073,976 | | |
Non-current assets | | | | | | | | | | | | | | | | | | | | | | |
Restricted cash
|
| |
11
|
| | |
|
470,460
|
| | | | | 462,874 | | | | | | 439,736 | | |
Right-of-use asset
|
| |
12
|
| | |
|
830,551
|
| | | | | 720,473 | | | | | | — | | |
Finance lease receivable
|
| |
8
|
| | |
|
42,841
|
| | | | | 138,690 | | | | | | — | | |
Property and equipment
|
| |
13
|
| | |
|
803,280
|
| | | | | 767,973 | | | | | | 813,628 | | |
Total non-current assets
|
| | | | | |
|
2,147,132
|
| | | | | 2,090,010 | | | | | | 1,253,364 | | |
Total assets
|
| | | | | |
$
|
17,878,219
|
| | | | $ | 10,105,840 | | | | | $ | 13,327,340 | | |
LIABILITIES AND EQUITY | | | | | | | | | | | | | | | | | | | | | | |
Liabilities
|
| | | | | | | | | | | | | | | | | | | | | |
Current liabilities
|
| | | | | | | | | | | | | | | | | | | | | |
Accounts payable and accrued liabilities
|
| |
14
|
| | |
$
|
7,243,500
|
| | | | $ | 7,794,456 | | | | | $ | 4,610,560 | | |
Lease liabilities
|
| |
15
|
| | |
|
342,910
|
| | | | | 436,352 | | | | | | — | | |
2017 Convertible notes
|
| |
16
|
| | |
|
—
|
| | | | | 5,400,189 | | | | | | 1,423,224 | | |
2019 Convertible notes
|
| |
16
|
| | |
|
38,633
|
| | | | | 1,090,561 | | | | | | — | | |
2020 Convertible notes
|
| |
16
|
| | |
|
37,525
|
| | | | | — | | | | | | — | | |
Total current liabilities
|
| | | | | |
|
7,662,568
|
| | | | | 14,721,558 | | | | | | 6,033,784 | | |
Non-Current Liabilities
|
| | | | | | | | | | | | | | | | | | | | | |
Accounts payable and accrued liabilities
|
| |
14
|
| | |
|
—
|
| | | | | 1,186,601 | | | | | | 2,241,979 | | |
Lease liabilities
|
| |
15
|
| | |
|
596,881
|
| | | | | 468,527 | | | | | | — | | |
2017 Convertible notes
|
| |
16
|
| | |
|
—
|
| | | | | — | | | | | | 13,194,112 | | |
2017 Derivative warrant liability
|
| |
16
|
| | |
|
—
|
| | | | | — | | | | | | 190,303 | | |
2019 Convertible notes
|
| |
16
|
| | |
|
6,156,724
|
| | | | | 8,174,919 | | | | | | — | | |
2020 Convertible notes and warrants and derivative warrant liabilities
|
| |
16
|
| | |
|
1,484,529
|
| | | | | — | | | | | | — | | |
Total non-current liabilities
|
| | | | | |
|
8,238,134
|
| | | | | 9,830,047 | | | | | | 15,626,394 | | |
Total liabilities
|
| | | | | |
$
|
15,900,702
|
| | | | $ | 24,551,605 | | | | | $ | 21,660,178 | | |
Equity | | | | | | | | | | | | | | | | | | | | | | |
Share capital
|
| |
18
|
| | |
$
|
369,775,383
|
| | | | $ | 328,460,681 | | | | | $ | 304,460,533 | | |
Contributed surplus
|
| |
18
|
| | |
|
35,045,056
|
| | | | | 29,766,225 | | | | | | 26,260,806 | | |
Accumulated other comprehensive loss
|
| | | | | |
|
(7,615,717)
|
| | | | | (6,140,507) | | | | | | (7,653,028) | | |
Deficit
|
| | | | | |
|
(395,227,205)
|
| | | | | (366,532,164) | | | | | | (331,401,149) | | |
Total equity
|
| | | | | |
|
1,977,517
|
| | | | | (14,445,765) | | | | | | (8,332,838) | | |
Total liabilities and equity
|
| | | | | |
$
|
17,878,219
|
| | | | $ | 10,105,840 | | | | | $ | 13,327,340 | | |
| | |
Notes
|
| |
2020
|
| |
2019
|
| |
2018
|
| |||||||||
REVENUE
|
| |
18
|
| | |
$
|
1,957,362
|
| | | | $ | 2,092,032 | | | | | $ | 1,749,133 | | |
COST OF GOODS SOLD
|
| | | | | |
|
446,239
|
| | | | | 458,436 | | | | | | 366,258 | | |
GROSS PROFIT
|
| | | | | |
|
1,511,123
|
| | | | | 1,633,596 | | | | | | 1,382,875 | | |
EXPENSES | | | | | | | | | | | | | | | | | | | | | | |
Selling expenses
|
| |
21
|
| | |
|
2,196,803
|
| | | | | 1,645,985 | | | | | | 1,353,165 | | |
General and administrative expenses
|
| |
21
|
| | |
|
14,081,153
|
| | | | | 10,013,732 | | | | | | 16,438,936 | | |
Product development and clinical trials expenses
|
| |
21
|
| | |
|
20,401,595
|
| | | | | 20,020,959 | | | | | | 16,001,464 | | |
TOTAL EXPENSES
|
| | | | | |
|
36,679,551
|
| | | | | 31,680,676 | | | | | | 33,793,565 | | |
OPERATING LOSS
|
| | | | | |
|
(35,168,428)
|
| | | | | (30,047,080) | | | | | | (32,410,690) | | |
OTHER (EXPENSE)/ INCOME | | | | | | | | | | | | | | | | | | | | | | |
Interest and other income
|
| | | | | |
|
1,394,035
|
| | | | | 184,912 | | | | | | 183,065 | | |
Interest and prepayment penalty expense
|
| | | | | |
|
(1,035,957)
|
| | | | | (133,082) | | | | | | — | | |
Impairment on right-of-use asset
|
| | | | | |
|
—
|
| | | | | (104,544) | | | | | | — | | |
Gain on sale of asset
|
| | | | | |
|
—
|
| | | | | — | | | | | | 238,907 | | |
Loss on foreign exchange
|
| | | | | |
|
(256,585)
|
| | | | | (74,209) | | | | | | (175,054) | | |
Unrealized gain/(loss) on warrants, derivative liability warrants and convertible notes
|
| |
16
|
| | |
|
8,528,255
|
| | | | | (3,235,591) | | | | | | (814,827) | | |
Realized gain/(loss) on exercise or conversion of warrants, derivative liability warrants and convertible notes
|
| |
16
|
| | |
|
814,083
|
| | | | | (1,692,628) | | | | | | (28,003,594) | | |
Amortization of deferred loss
|
| |
16
|
| | |
|
(3,494,501)
|
| | | | | — | | | | | | (46,894,189) | | |
TOTAL OTHER (EXPENSE)/ INCOME
|
| | | | | |
|
5,949,330
|
| | | | | (5,055,142) | | | | | | (75,465,692) | | |
LOSS BEFORE TAX
|
| | | | | |
|
(29,219,098)
|
| | | | | (35,102,222) | | | | | | (107,876,382) | | |
Tax recovery/(expense)
|
| | | | | |
|
524,057
|
| | | | | (28,793) | | | | | | (107,093) | | |
LOSS FOR THE YEAR
|
| | | | | |
$
|
(28,695,041)
|
| | | | $ | (35,131,015) | | | | | $ | (107,983,475) | | |
OTHER COMPREHENSIVE (LOSS)/INCOME FOR THE YEAR
|
| | | | | | | | | | | | | | | | | | | | | |
Fair market value changes in convertible notes due to changes in own credit risk
|
| | | | | |
|
(1,475,210)
|
| | | | | 1,512,521 | | | | | | (1,009,592) | | |
| | | | | | |
|
(1,475,210)
|
| | | | | 1,512,521 | | | | | | (1,009,592) | | |
LOSS AND OTHER COMPREHENSIVE LOSS FOR THE YEAR
|
| | | | | |
$
|
(30,170,251)
|
| | | | $ | (33,618,494) | | | | | $ | (108,993,067) | | |
LOSS PER SHARE | | | | | | | | | | | | | | | | | | | | | | |
Basic and diluted loss per share
|
| |
22
|
| | |
$
|
(1.72)
|
| | | | $ | (5.40) | | | | | $ | (76.26) | | |
| | |
Notes
|
| |
Share
Capital |
| |
Contributed
Surplus |
| |
Accumulated
Other Comprehensive Loss |
| |
Deficit
|
| |
Total
Equity |
| |||||||||||||||
Balance at January 1, 2018
|
| | | | | | $ | 171,803,816 | | | | | $ | 23,056,846 | | | | | $ | (6,643,436) | | | | | $ | (223,417,674) | | | | | $ | (35,200,448) | | |
Issue of share capital on exercise of options
|
| |
18(a)
|
| | | | 88,917 | | | | | | (88,917) | | | | | | — | | | | | | — | | | | | | — | | |
Issue of share capital on exercise of 2017 Warrants
|
| |
18(a)
|
| | | | 113,985,426 | | | | | | — | | | | | | — | | | | | | — | | | | | | 113,985,426 | | |
Issue of share capital on conversion of 2017 Notes
|
| |
18(a)
|
| | | | 18,582,374 | | | | | | — | | | | | | — | | | | | | — | | | | | | 18,582,374 | | |
Share-based payments
|
| |
21
|
| | | | — | | | | | | 3,292,877 | | | | | | — | | | | | | — | | | | | | 3,292,877 | | |
Transactions with owners during the year
|
| | | | | | | 132,656,717 | | | | | | 3,203,960 | | | | | | — | | | | | | — | | | | | | 135,860,677 | | |
Loss for the year
|
| | | | | | | — | | | | | | — | | | | | | — | | | | | | (107,983,475) | | | | | | (107,983,475) | | |
Other comprehensive loss for the year
|
| | | | | | | — | | | | | | — | | | | | | (1,009,592) | | | | | | — | | | | | | (1,009,592) | | |
Balance at December 31, 2018
|
| | | | | | $ | 304,460,533 | | | | | $ | 26,260,806 | | | | | $ | (7,653,028) | | | | | $ | (331,401,149) | | | | | $ | (8,332,838) | | |
Issue of share capital on public offering
|
| |
18(a)
|
| | | | 7,802,417 | | | | | | — | | | | | | — | | | | | | — | | | | | | 7,802,417 | | |
(net of share issuance costs)
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Issue of share capital on private placement
|
| |
18(a)
|
| | | | 1,664,662 | | | | | | — | | | | | | — | | | | | | — | | | | | | 1,664,662 | | |
(net of share issuance costs)
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Issue of share capital on exercise of 2017 Warrants
|
| |
18(a)
|
| | | | 1,437,131 | | | | | | — | | | | | | — | | | | | | — | | | | | | 1,437,131 | | |
Issue of share capital on conversion of 2017 Notes
|
| |
18(a)
|
| | | | 13,095,938 | | | | | | — | | | | | | — | | | | | | — | | | | | | 13,095,938 | | |
Issue of broker warrants
|
| |
18(a)
|
| | | | — | | | | | | 315,611 | | | | | | — | | | | | | — | | | | | | 315,611 | | |
Share-based payments
|
| |
21
|
| | | | — | | | | | | 3,189,808 | | | | | | — | | | | | | — | | | | | | 3,189,808 | | |
Transactions with owners during the year
|
| | | | | | | 24,000,148 | | | | | | 3,505,419 | | | | | | — | | | | | | — | | | | | | 27,505,567 | | |
Loss for the year
|
| | | | | | | — | | | | | | — | | | | | | — | | | | | | (35,131,015) | | | | | | (35,131,015) | | |
Other comprehensive loss for the year
|
| | | | | | | — | | | | | | — | | | | | | 1,512,521 | | | | | | — | | | | | | 1,512,521 | | |
Balance at December 31, 2019
|
| | | | | | $ | 328,460,681 | | | | | $ | 29,766,225 | | | | | $ | (6,140,507) | | | | | $ | (366,532,164) | | | | | $ | (14,445,765) | | |
Issue of share capital on public offering | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
(net of share issuance costs)
|
| |
18(a)
|
| | |
|
31,765,981
|
| | | |
|
—
|
| | | |
|
—
|
| | | |
|
—
|
| | | |
|
31,765,981
|
| |
Issue of share capital on conversion of notes
|
| |
18(a)
|
| | |
|
1,293,093
|
| | | |
|
—
|
| | | |
|
—
|
| | | |
|
—
|
| | | |
|
1,293,093
|
| |
Issue of broker warrants and compensation warrants
|
| |
18(a)
|
| | |
|
(584,167)
|
| | | |
|
584,167
|
| | | |
|
—
|
| | | |
|
—
|
| | | |
|
—
|
| |
Issue of share capital on exchange of warrants
|
| |
18(a)
|
| | |
|
8,687,479
|
| | | |
|
—
|
| | | |
|
—
|
| | | |
|
—
|
| | | |
|
8,687,479
|
| |
Issue of share capital on exercise of options
|
| |
18(a)
|
| | |
|
378
|
| | | |
|
(174)
|
| | | |
|
—
|
| | | |
|
—
|
| | | |
|
204
|
| |
Issue of share capital on vesting of restricted share units
|
| |
18(a)
|
| | |
|
151,938
|
| | | |
|
(151,938)
|
| | | | | | | | | | | | | | | |
|
—
|
| |
Share-based payments
|
| |
21
|
| | |
|
—
|
| | | |
|
4,846,776
|
| | | |
|
—
|
| | | |
|
—
|
| | | |
|
4,846,776
|
| |
Transactions with owners during the year
|
| | | | | | | 41,314,702 | | | | | | 5,278,831 | | | | | | — | | | | | | — | | | | | | 46,593,533 | | |
Loss for the year
|
| | | | | | | — | | | | | | — | | | | | | — | | | | | | (28,695,041) | | | | | | (28,695,041) | | |
Other comprehensive loss for the year
|
| | | | | | | — | | | | | | — | | | | | | (1,475,210) | | | | | | — | | | | | | (1,475,210) | | |
Balance at December 31, 2020
|
| | | | | | $ | 369,775,383 | | | | | $ | 35,045,056 | | | | | $ | (7,615,717) | | | | | $ | (395,227,205) | | | | | $ | 1,977,517 | | |
| | |
Notes
|
| |
2020
|
| |
2019
|
| |
2018
|
| |||||||||
OPERATING ACTIVITIES | | | | | | | | | | | | | | | | | | | | | | |
Loss for the year
|
| | | | | |
$
|
(28,695,041)
|
| | | | $ | (35,131,015) | | | | | $ | (107,983,475) | | |
Adjustments for: | | | | | | | | | | | | | | | | | | | | | | |
Depreciation
|
| |
21
|
| | |
|
768,101
|
| | | | | 641,621 | | | | | | 384,126 | | |
Share-based payments
|
| |
21
|
| | |
|
4,905,812
|
| | | | | 3,189,808 | | | | | | 3,292,877 | | |
Impairment of right-of-use asset
|
| | | | | |
|
—
|
| | | | | 75,407 | | | | | | — | | |
Gain on sale of assets
|
| | | | | |
|
—
|
| | | | | — | | | | | | (238,907) | | |
Loss on disposal of assets
|
| | | | | |
|
11,966
|
| | | | | — | | | | | | 51,106 | | |
Accrued employee termination expenses
|
| | | | | |
|
—
|
| | | | | — | | | | | | 373,171 | | |
Accretion on collaboration, license and settlement agreement provision
|
| | | | | |
|
157,994
|
| | | | | 298,849 | | | | | | 4,129,758 | | |
Unrealized (gain)/loss on warrants, derivative liability warrants and convertible notes
|
| |
16
|
| | |
|
(8,528,255)
|
| | | | | 3,235,591 | | | | | | 814,827 | | |
Realized loss on exercise or conversion of warrants, derivative Liability warrants and convertible notes
|
| |
16
|
| | |
|
(814,083)
|
| | | | | 1,692,628 | | | | | | 28,003,594 | | |
Amortization of deferred loss
|
| | | | | |
|
3,494,501
|
| | | | | — | | | | | | 46,894,189 | | |
Non-cash legal costs from financing activity
|
| | | | | |
|
1,565,224
|
| | | | | — | | | | | | — | | |
Write-down accounts receivable
|
| | | | | |
|
—
|
| | | | | 64,600 | | | | | | 489,449 | | |
Income tax (recovery)/expense
|
| | | | | |
|
(524,057)
|
| | | | | 28,793 | | | | | | 107,093 | | |
Interest income and expenses
|
| | | | | |
|
(358,078)
|
| | | | | (56,000) | | | | | | (183,065) | | |
| | | | | | |
|
(28,015,916)
|
| | | | | (25,959,718) | | | | | | (23,865,257) | | |
Net change in non-cash working capital items: | | | | | | | | | | | | | | | | | | | | | | |
Accounts receivable
|
| | | | | |
|
(271,361)
|
| | | | | (133,153) | | | | | | 198,331 | | |
Inventory
|
| | | | | |
|
(220,822)
|
| | | | | (359,908) | | | | | | 139,814 | | |
Research and development supplies
|
| | | | | |
|
504,467
|
| | | | | 662,201 | | | | | | (59,393) | | |
Prepaid expenses and other assets
|
| | | | | |
|
(75,429)
|
| | | | | (167,336) | | | | | | 282,091 | | |
Accounts payable and accrued liabilities
|
| | | | | |
|
(704,587)
|
| | | | | 3,979,669 | | | | | | 504,655 | | |
Payment of amounts due on collaboration, license and settlement agreements
|
| | | | | |
|
(1,250,000)
|
| | | | | (2,150,000) | | | | | | — | | |
| | | | | | |
|
(2,017,732)
|
| | | | | 1,831,473 | | | | | | 1,065,498 | | |
Income tax and Interest paid and received: | | | | | | | | | | | | | | | | | | | | | | |
Income tax (paid)/recovered
|
| | | | | |
|
524,057
|
| | | | | (28,793) | | | | | | 183,065 | | |
Interest (paid)/received
|
| | | | | |
|
67,735
|
| | | | | 184,912 | | | | | | (178,054) | | |
| | | | | | |
|
591,792
|
| | | | | 156,119 | | | | | | 5,011 | | |
Net cash applied to operating activities
|
| | | | | |
|
(29,441,856)
|
| | | | | (23,972,126) | | | | | | (22,794,748) | | |
INVESTING ACTIVITIES | | | | | | | | | | | | | | | | | | | | | | |
(Increase)/decrease in restricted cash
|
| | | | | |
|
(7,586)
|
| | | | | (23,138) | | | | | | 38,524 | | |
Purchase of property and equipment
|
| |
13
|
| | |
|
(341,767)
|
| | | | | (243,501) | | | | | | (190,382) | | |
Proceeds from sale of assets
|
| | | | | |
|
—
|
| | | | | — | | | | | | 865,610 | | |
Net cash (applied to)/from investing activities
|
| | | | | |
|
(349,353)
|
| | | | | (266,639) | | | | | | 713,752 | | |
FINANCING ACTIVITIES | | | | | | | | | | | | | | | | | | | | | | |
Proceeds from public offering net of share issuance costs
|
| |
18(a)
|
| | |
|
35,397,547
|
| | | | | 8,118,030 | | | | | | — | | |
Proceeds from private placement
|
| |
16(d)
|
| | |
|
5,000,000
|
| | | | | 11,483,496 | | | | | | — | | |
Proceeds from exercise of warrants
|
| |
16(e)
|
| | |
|
4,973,035
|
| | | | | 1,200,400 | | | | | | 13,816,648 | | |
Proceeds from government assistance
|
| |
25
|
| | |
|
1,328,338
|
| | | | | — | | | | | | — | | |
Proceeds from exercise of options
|
| |
18(a)
|
| | |
|
204
|
| | | | | — | | | | | | — | | |
Repayment of 2017 convertible note
|
| |
16(b)
|
| | |
|
(2,897,000)
|
| | | | | — | | | | | | — | | |
Repayment of 2019 convertible note
|
| |
18(e)
|
| | |
|
(4,877,225)
|
| | | | | — | | | | | | — | | |
Interest payment on 2019 convertible note
|
| | | | | |
|
(940,451)
|
| | | | | — | | | | | | — | | |
Payment of lease obligation
|
| | | | | |
|
(550,212)
|
| | | | | (513,137) | | | | | | — | | |
Net cash from financing activities
|
| | | | | |
|
37,434,236
|
| | | | | 20,288,789 | | | | | | 13,816,648 | | |
NET CHANGE IN CASH AND CASH EQUIVALENTS
|
| | | | | |
|
7,643,027
|
| | | | | (3,949,976) | | | | | | (8,264,348) | | |
CASH AND CASH EQUIVALENTS | | | | | | | | | | | | | | | | | | | | | | |
Beginning of the year
|
| | | | | |
|
5,292,833
|
| | | | | 9,242,809 | | | | | | 17,507,157 | | |
End of the year
|
| |
6
|
| | |
$
|
12,935,860
|
| | | | $ | 5,292,833 | | | | | $ | 9,242,809 | | |
| Building | | | 4% declining balance | |
| Leasehold improvements | | | amortized over the life of the lease | |
| Production & development equipment | | | 30% declining balance | |
| Computer hardware | | | 30% declining balance | |
| Computer software | | | 100% declining balance | |
| Office equipment | | | 20% declining balance | |
|
Total operating lease commitments disclosed at December 31, 2018
|
| | | $ | 1,431,188 | | |
| Recognition exemptions: | | | | | | | |
|
Leases of low value assets
|
| | | | — | | |
|
Leases with remaining lease term of less than 12 months
|
| | | | — | | |
|
Variable lease payments not recognized
|
| | | | — | | |
|
Operating lease liabilities before discounting
|
| | | | 1,431,188 | | |
|
Discounted using incremental borrowing rate
|
| | | | (142,082) | | |
|
Operating lease liabilities
|
| | | | 1,289,106 | | |
|
Total lease liabilities recognized under IFRS 16 at January 1, 2019
|
| | | $ | 1,289,106 | | |
| | |
2020
|
| |
2019
|
| |
2018
|
| |||||||||
2017 Convertible Notes
|
| | |
$
|
—
|
| | | | $ | 5,400,189 | | | | | $ | 14,617,336 | | |
2017 Derivative warrant liability
|
| | |
|
—
|
| | | | | — | | | | | | 190,303 | | |
2019 Convertible Notes
|
| | |
|
6,195,357
|
| | | | | 9,265,480 | | | | | | — | | |
2020 Convertible notes and warrants and derivative warrant liabilities
|
| | |
|
1,522,054
|
| | | | | — | | | | | | — | | |
Equity
|
| | |
|
1,977,517
|
| | | | | (14,445,765) | | | | | | (8,332,838) | | |
Capital
|
| | |
$
|
9,694,928
|
| | | | $ | (219,904) | | | | | $ | 6,284,498 | | |
| | |
Level 1
|
| |
Level 2
|
| |
Level 3
|
| |
Total
|
| ||||||||||||
Financial liabilities at fair value through profit and loss | | | | | | | | | | | | | | | | | | | | | | | | | |
2017 Convertible Notes
|
| | | $ | — | | | | | $ | — | | | | | $ | 14,617,336 | | | | | $ | 14,617,336 | | |
Derivative warrant financial liability from financing
|
| | | $ | — | | | | | $ | — | | | | | $ | 190,303 | | | | | $ | 190,303 | | |
| | |
Level 1
|
| |
Level 2
|
| |
Level 3
|
| |
Total
|
| ||||||||||||
Financial liabilities at fair value through profit and loss | | | | | | | | | | | | | | | | | | | | | | | | | |
2017 Convertible Notes
|
| | | $ | — | | | | | $ | — | | | | | $ | 5,400,189 | | | | | $ | 5,400,189 | | |
2019 Convertible Notes
|
| | | $ | — | | | | | $ | — | | | | | $ | 9,265,480 | | | | | $ | 9,265,480 | | |
| | |
Level 1
|
| |
Level 2
|
| |
Level 3
|
| |
Total
|
| ||||||||||||
Financial liabilities at fair value through profit and loss | | | | | | | | | | | | | | | | | | | | | | | | | |
2019 Convertible Notes
|
| | | $ | — | | | | | $ | — | | | | | $ | 6,195,357 | | | | | $ | 6,195,357 | | |
2020 Convertible notes and warrants and derivative warrant liabilities
|
| | | $ | — | | | | | $ | — | | | | | $ | 1,522,054 | | | | | $ | 1,522,054 | | |
| | |
Note
|
| |
2020
|
| |
2019
|
| |
2018
|
| |||||||||
Assets at amortized cost | | | | | | | | | | | | | | | | | | | | | | |
Cash and cash equivalents
|
| |
6
|
| | |
$
|
12,935,860
|
| | | | $ | 5,292,833 | | | | | $ | 9,242,809 | | |
Accounts receivable
|
| |
7
|
| | |
|
987,057
|
| | | | | 715,696 | | | | | | 647,143 | | |
Restricted cash
|
| |
11
|
| | |
|
470,460
|
| | | | | 462,874 | | | | | | 439,736 | | |
| | | | | | |
$
|
14,393,377
|
| | | | $ | 6,471,403 | | | | | $ | 10,329,688 | | |
Other financial liabilities at amortized cost | | | | | | | | | | | | | | | | | | | | | | |
Accounts payable and accrued liabilities (current)
|
| |
14
|
| | |
$
|
7,243,500
|
| | | | $ | 7,794,456 | | | | | $ | 4,610,560 | | |
Accounts payable and accrued liabilities (non-current)
|
| |
14
|
| | |
|
—
|
| | | | | 1,186,601 | | | | | | 2,241,979 | | |
Financial liabilities at fair value through profit and loss | | | | | | | | | | | | | | | | | | | | | | |
2017 Convertible Notes (current)
|
| |
16(b)
|
| | |
$
|
—
|
| | | | $ | 5,400,189 | | | | | $ | 1,423,224 | | |
2017 Convertible Notes (non-current)
|
| |
16(b)
|
| | |
|
—
|
| | | | | — | | | | | | 13,194,112 | | |
2017 Derivative warrant liability (current)
|
| |
16(b)
|
| | |
|
—
|
| | | | | — | | | | | | 190,303 | | |
2019 Convertible Notes (current)
|
| |
16(c)
|
| | |
|
38,633
|
| | | | | 1,090,561 | | | | | | — | | |
2019 Convertible Notes (non-current)
|
| |
16(c)
|
| | |
|
6,156,724
|
| | | | | 8,174,919 | | | | | | — | | |
2020 Convertible Notes (current)
|
| |
16(d)
|
| | |
|
37,525
|
| | | | | — | | | | | | — | | |
2020 Convertible notes and warrants and derivative
warrant liabilities (non-current) |
| |
16(d)
|
| | |
|
1,484,529
|
| | | | | — | | | | | | — | | |
| | | | | | |
$
|
14,960,911
|
| | | | $ | 23,646,726 | | | | | $ | 21,660,178 | | |
| | |
Total
|
| |||
Current
|
| | |
$
|
1,612,254
|
| |
31 – 60 days
|
| | |
|
869,498
|
| |
Over 60 days
|
| | |
|
1,223,874
|
| |
| | | | $ | 3,705,626 | | |
| | |
Within One
Year |
| |||
Collaboration, license and settlement agreements (undiscounted)
|
| | |
$
|
1,250,000
|
| |
| | | | $ | 1,250,000 | | |
| | |
December 31,
2020 |
| |
December 31,
2019 |
| |
December 31,
2018 |
| |||||||||
Cash held in: | | | | | | | | | | | | | | | | | | | |
United States dollars
|
| | |
$
|
11,631,843
|
| | | | $ | 4,489,501 | | | | | $ | 8,173,582 | | |
Canadian dollars
|
| | |
|
809,429
|
| | | | | 525,371 | | | | | | 483,730 | | |
Euros
|
| | |
|
494,588
|
| | | | | 277,961 | | | | | | 585,497 | | |
| | | |
$
|
12,935,860
|
| | | | $ | 5,292,833 | | | | | $ | 9,242,809 | | |
| | |
December 31,
2020 |
| |
December 31,
2019 |
| |
December 31,
2018 |
| |||||||||
Trade accounts receivable
|
| | |
$
|
322,201
|
| | | | $ | 597,505 | | | | | $ | 637,421 | | |
Other accounts receivable
|
| | |
|
116,905
|
| | | | | 118,191 | | | | | | 9,722 | | |
Income tax receivable
|
| | |
|
547,951
|
| | | | | — | | | | | | — | | |
| | | |
$
|
987,057
|
| | | | $ | 715,696 | | | | | $ | 647,143 | | |
| | |
December 31,
2020 |
| |
December 31,
2019 |
| |
December 31,
2018 |
| |||||||||
Not past due
|
| | |
$
|
195,545
|
| | | | $ | 472,257 | | | | | $ | 361,469 | | |
Past due 0 – 30 days
|
| | |
|
—
|
| | | | | 14,139 | | | | | | 18,614 | | |
30 – 60 days
|
| | |
|
35,114
|
| | | | | 20,000 | | | | | | — | | |
60 – 90 days
|
| | |
|
11,543
|
| | | | | — | | | | | | 54,428 | | |
90 – 120 days
|
| | |
|
—
|
| | | | | — | | | | | | — | | |
Over 120 days
|
| | |
|
100,000
|
| | | | | 114,676 | | | | | | 238,600 | | |
Loss allowance
|
| | |
|
(20,001)
|
| | | | | (23,567) | | | | | | (35,690) | | |
| | | |
$
|
322,201
|
| | | | $ | 597,505 | | | | | $ | 637,421 | | |
| | |
December 31,
2020 |
| |
December 31,
2019 |
| |
December 31,
2018 |
| |||||||||
Current
|
| | |
$
|
95,849
|
| | | | $ | 86,764 | | | | | $ | — | | |
Non-current
|
| | |
|
42,841
|
| | | | | 138,690 | | | | | | — | | |
| | | |
$
|
138,690
|
| | | | $ | 225,454 | | | | | $ | — | | |
| | |
Total
|
| |||
Less than 1 year
|
| | |
$
|
105,404
|
| |
1 – 2 years
|
| | |
|
43,918
|
| |
Total undiscounted finance lease receivables
|
| | |
$
|
149,322
|
| |
| | |
December 31,
2020 |
| |
December 31,
2019 |
| |
December 31,
2018 |
| |||||||||
Raw materials
|
| | |
$
|
694,043
|
| | | | $ | 500,263 | | | | | $ | 301,693 | | |
Work in progress
|
| | |
|
—
|
| | | | | — | | | | | | 2,435 | | |
Finished goods
|
| | |
|
145,429
|
| | | | | 118,387 | | | | | | 14,007 | | |
| | | |
$
|
839,472
|
| | | | $ | 618,650 | | | | | $ | 318,135 | | |
Research and development supplies
|
| | |
$
|
167,378
|
| | | | $ | 671,845 | | | | | $ | 1,274,653 | | |
| | |
December 31,
2020 |
| |
December 31,
2019 |
| |
December 31,
2018 |
| |||||||||
Prepaid insurance
|
| | |
|
367,969
|
| | | | | 269,262 | | | | | | 190,849 | | |
Deposits on rental agreements
|
| | |
|
128,680
|
| | | | | 119,660 | | | | | | 276,500 | | |
Retainers for professional services
|
| | |
|
23,000
|
| | | | | 23,000 | | | | | | 5,593 | | |
Other prepaid expenses and other assets
|
| | |
|
185,822
|
| | | | | 218,120 | | | | | | 118,294 | | |
| | | |
$
|
705,471
|
| | | | $ | 630,042 | | | | | $ | 591,236 | | |
| | |
December 31,
2020 |
| |
December 31,
2019 |
| |
December 31,
2018 |
| |||||||||
Restricted cash
|
| | |
$
|
470,460
|
| | | | $ | 462,874 | | | | | $ | 439,736 | | |
| | |
Total
|
| |||
COST | | | | | | | |
Balance at January 1, 2019 on adoption of IFRS 16
|
| | |
$
|
1,407,704
|
| |
Impairment of right-of-use asset
|
| | |
|
(231,773)
|
| |
Impairment reversal
|
| | |
|
156,366
|
| |
Sublease
|
| | |
|
(274,965)
|
| |
Balance as at December 31, 2019
|
| | | $ | 1,057,333 | | |
Addition and lease modification
|
| | |
|
478,281
|
| |
Balance as at December 31, 2020
|
| | | $ | 1,535,614 | | |
ACCUMULATED DEPRECIATION | | | | | | | |
Balance at January 1, 2019 on adoption of IFRS 16
|
| | |
|
—
|
| |
Depreciation for the year
|
| | |
|
336,860
|
| |
Balance at December 31, 2019
|
| | |
$
|
336,860
|
| |
Depreciation for the year
|
| | |
|
368,203
|
| |
Balance as at December 31, 2020
|
| | | $ | 705,063 | | |
NET BOOK VALUE | | | | | | | |
As at January 1, 2019,
|
| | |
$
|
1,407,704
|
| |
As at December 31, 2019
|
| | |
$
|
720,473
|
| |
As at December 31, 2020
|
| | | $ | 830,551 | | |
| | |
Land
|
| |
Building
|
| |
Leasehold
improvements |
| |
Production &
development equipment |
| |
Computer
hardware |
| |
Computer
software |
| |
Office
equipment |
| |
Total
|
| ||||||||||||||||||||||||
COST | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Balance as at January 1, 2018
|
| | | $ | 249,493 | | | | | $ | 438,471 | | | | | $ | 169,938 | | | | | $ | 1,649,728 | | | | | $ | 543,922 | | | | | $ | 612,273 | | | | | $ | 316,085 | | | | | $ | 3,979,910 | | |
Additions during the year
|
| | | | — | | | | | | — | | | | | | — | | | | | | 149,583 | | | | | | — | | | | | | 40,799 | | | | | | — | | | | | | 190,382 | | |
Disposals during the year
|
| | | | (249,493) | | | | | | (438,471) | | | | | | — | | | | | | (310,353) | | | | | | — | | | | | | — | | | | | | — | | | | | | (998,317) | | |
Balance as at December 31, 2018
|
| | | $ | — | | | | | $ | — | | | | | $ | 169,938 | | | | | $ | 1,488,958 | | | | | $ | 543,922 | | | | | $ | 653,072 | | | | | $ | 316,085 | | | | | $ | 3,171,975 | | |
Additions during the year
|
| | | | — | | | | | | — | | | | | | — | | | | | | 203,169 | | | | | | — | | | | | | 40,332 | | | | | | — | | | | | | 243,501 | | |
Disposals during the year
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Balance at December 31, 2019
|
| | | $ | — | | | | | $ | — | | | | | $ | 169,938 | | | | | $ | 1,692,127 | | | | | $ | 543,922 | | | | | $ | 693,404 | | | | | $ | 316,085 | | | | | $ | 3,415,476 | | |
Additions during the year
|
| | | | — | | | | | | — | | | | | | — | | | | | | 202,329 | | | | | | 106,149 | | | | | | 33,289 | | | | | | — | | | | | | 341,767 | | |
Disposals during the year
|
| | | | — | | | | | | — | | | | | | — | | | | | | (88,285) | | | | | | — | | | | | | — | | | | | | — | | | | | | (88,285) | | |
Balance as at December 31, 2020
|
| | | $ | — | | | | | $ | — | | | | | $ | 169,938 | | | | | $ | 1,806,171 | | | | | $ | 650,071 | | | | | $ | 726,693 | | | | | $ | 316,085 | | | | | $ | 3,668,958 | | |
ACCUMULATED DEPRECIATION | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Balance at January 1, 2018
|
| | | $ | — | | | | | $ | 53,564 | | | | | $ | 66,416 | | | | | $ | 998,944 | | | | | $ | 386,095 | | | | | $ | 572,017 | | | | | $ | 217,694 | | | | | $ | 2,294,730 | | |
Depreciation for the year
|
| | | | — | | | | | | 7,698 | | | | | | 23,439 | | | | | | 211,908 | | | | | | 47,348 | | | | | | 74,055 | | | | | | 19,678 | | | | | | 384,126 | | |
Disposals during the year
|
| | | | — | | | | | | (61,262) | | | | | | — | | | | | | (259,247) | | | | | | — | | | | | | — | | | | | | — | | | | | | (320,509) | | |
Balance at December 31, 2018
|
| | | $ | — | | | | | $ | — | | | | | $ | 89,855 | | | | | $ | 951,605 | | | | | $ | 433,443 | | | | | $ | 646,072 | | | | | $ | 237,372 | | | | | $ | 2,358,347 | | |
Depreciation for the year
|
| | | | — | | | | | | — | | | | | | 18,132 | | | | | | 184,429 | | | | | | 33,144 | | | | | | 40,371 | | | | | | 15,744 | | | | | | 291,820 | | |
Disposals during the year
|
| | | | — | | | | | | — | | | | | | — | | | | | | (2,664) | | | | | | — | | | | | | — | | | | | | — | | | | | | (2,664) | | |
Balance at December 31, 2019
|
| | | $ | — | | | | | $ | — | | | | | $ | 107,987 | | | | | $ | 1,133,370 | | | | | $ | 466,587 | | | | | $ | 686,443 | | | | | $ | 253,116 | | | | | $ | 2,647,503 | | |
Depreciation for the year
|
| | | | — | | | | | | — | | | | | | 25,636 | | | | | | 184,973 | | | | | | 33,815 | | | | | | 37,477 | | | | | | 12,593 | | | | | | 294,494 | | |
Disposals during the year
|
| | | | — | | | | | | — | | | | | | — | | | | | | (76,319) | | | | | | — | | | | | | — | | | | | | — | | | | | | (76,319) | | |
Balance at December 31, 2020
|
| | | $ | — | | | | | $ | — | | | | | $ | 133,623 | | | | | $ | 1,242,024 | | | | | $ | 500,402 | | | | | $ | 723,920 | | | | | $ | 265,709 | | | | | $ | 2,865,678 | | |
CARRYING AMOUNTS | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
As at December 31, 2018
|
| | | $ | — | | | | | $ | — | | | | | $ | 80,083 | | | | | $ | 537,353 | | | | | $ | 110,479 | | | | | $ | 7,000 | | | | | $ | 78,713 | | | | | $ | 813,628 | | |
As at December 31, 2019
|
| | | $ | — | | | | | $ | — | | | | | $ | 61,951 | | | | | $ | 558,757 | | | | | $ | 77,335 | | | | | $ | 6,961 | | | | | $ | 62,969 | | | | | $ | 767,973 | | |
As at December 31, 2020
|
| | | $ | — | | | | | $ | — | | | | | $ | 36,315 | | | | | $ | 564,147 | | | | | $ | 149,669 | | | | | $ | 2,773 | | | | | $ | 50,376 | | | | | $ | 803,280 | | |
| | |
December 31,
2020 |
| |
December 31,
2019 |
| |
December 31,
2018 |
| |||||||||
Current accounts payable and accrued liabilities | | | | | | | | | | | | | | | | | | | |
Trade payables
|
| | |
$
|
3,705,626
|
| | | | $ | 3,993,203 | | | | | $ | 898,711 | | |
Accrued liabilities
|
| | |
|
1,421,433
|
| | | | | 2,163,886 | | | | | | 1,117,673 | | |
Accrued vacation
|
| | |
|
335,681
|
| | | | | 211,168 | | | | | | 142,730 | | |
Accrued employee termination expenses
|
| | |
|
—
|
| | | | | 13,887 | | | | | | 373,171 | | |
Other accounts payable
|
| | |
|
535,124
|
| | | | | 320,306 | | | | | | 190,496 | | |
Share appreciation rights liability
|
| | |
|
59,036
|
| | | | | — | | | | | | — | | |
Collaboration, license, and settlement agreements provision
|
| | |
|
1,186,600
|
| | | | | 1,092,006 | | | | | | 1,887,779 | | |
Total current accounts payable and accrued liabilities
|
| | |
$
|
7,243,500
|
| | | | $ | 7,794,456 | | | | | $ | 4,610,560 | | |
Non-current accrued liabilities | | | | | | | | | | | | | | | | | | | |
Non-current collaboration, license and settlement agreements provision
|
| | |
|
—
|
| | | | | 1,186,601 | | | | | | 2,241,979 | | |
| | | |
$
|
—
|
| | | | $ | 1,186,601 | | | | | $ | 2,241,979 | | |
Total accounts payable and accrued liabilities
|
| | |
$
|
7,243,500
|
| | | | $ | 8,981,057 | | | | | $ | 6,852,539 | | |
| | |
Total
|
| |||
Balance at January 1, 2019
|
| | |
$
|
1,289,106
|
| |
Interest expense
|
| | |
|
128,911
|
| |
Lease payments
|
| | |
|
(513,138)
|
| |
Balance at December 31, 2019
|
| | |
$
|
904,879
|
| |
Lease Liability, current
|
| | |
$
|
436,352
|
| |
Lease Liability, non-current
|
| | |
$
|
468,527
|
| |
Addition and lease modification
|
| | |
|
478,280
|
| |
Interest expense
|
| | |
|
106,843
|
| |
Lease payments
|
| | |
|
(550,211)
|
| |
Balance at December 31, 2020
|
| | |
$
|
939,791
|
| |
Lease Liability, current
|
| | |
$
|
342,910
|
| |
Lease Liability, non-current
|
| | |
$
|
596,881
|
| |
The maturity analysis of the undiscounted contractual balances of the lease liabilities is as follows:
|
| | | | | | |
In one year or less
|
| | |
$
|
484,782
|
| |
In more than one year, but not more than five years
|
| | |
|
664,848
|
| |
| | | | $ | 1,149,630 | | |
Valuation Date
|
| |
March 31,
2020 |
| |
December 31,
2019 |
| |
December 31,
2018 |
| |||||||||
Price of Common Shares
|
| | |
$
|
1.46
|
| | | | $ | 5.41 | | | | | $ | 6.03 | | |
Dividend Yield
|
| | |
|
0%
|
| | | | | 0% | | | | | | 0% | | |
Historical volatility of Common Shares
|
| | |
|
100.84%
|
| | | | | 129.54% | | | | | | 141.96% | | |
Historical volatility of index
|
| | |
|
36.07%
|
| | | | | 11.65% | | | | | | 15.37% | | |
Volatility input
|
| | |
|
75.16%
|
| | | | | 70.59% | | | | | | 78.67% | | |
Risk-free rate
|
| | |
|
1.11%
|
| | | | | 1.79% | | | | | | 2.52% | | |
Credit spread
|
| | |
|
29.58%
|
| | | | | 23.00% | | | | | | 24.51% | | |
Valuation Date
|
| |
December 31,
2020 |
| |
December 31,
2019 |
| |
May 16,
2019 |
| |||||||||
Price of Common Shares
|
| | |
$
|
0.95
|
| | | | $ | 5.41 | | | | | $ | 49.46 | | |
Dividend Yield
|
| | |
|
0%
|
| | | | | 0% | | | | | | 0% | | |
Historical volatility of Common Shares
|
| | |
|
103.42%
|
| | | | | 124.77% | | | | | | 142.38% | | |
Historical volatility of index
|
| | |
|
23.11%
|
| | | | | 13.76% | | | | | | 15.66% | | |
Volatility input
|
| | |
|
63.26%
|
| | | | | 69.26% | | | | | | 79.02% | | |
Risk-free rate
|
| | |
|
0.19%
|
| | | | | 1.65% | | | | | | 2.13% | | |
Credit spread
|
| | |
|
18.18%
|
| | | | | 27.15% | | | | | | 19.64% | | |
Valuation Date
|
| |
December 31,
2020 |
| |
May 28,
2020 |
| ||||||
Price of Common Shares
|
| | |
$
|
0.95
|
| | | | $ | 2.86 | | |
Dividend Yield
|
| | |
|
0%
|
| | | | | 0% | | |
Historical volatility of Common Shares
|
| | |
|
116.72%
|
| | | | | 127.50% | | |
Historical volatility of index
|
| | |
|
20.74%
|
| | | | | 18.91% | | |
Volatility input
|
| | |
|
68.73%
|
| | | | | 73.21% | | |
Risk-free rate
|
| | |
|
0.26%
|
| | | | | 0.32% | | |
Credit spread
|
| | |
|
14.42%
|
| | | | | 19.35% | | |
| | |
Series A
Units |
| |
Series B
Units |
| |
Series E
Warrants |
| |
Total
|
| ||||||||||||
Fair value adjustment, December 31, 2018
|
| | | | 1,190,630 | | | | | | (8,411,543) | | | | | | (4,512,848) | | | | |
|
(11,733,761)
|
| |
Balance, Derivative financial liability December 31, 2018
|
| | | $ | 35,693 | | | | | $ | 82,523 | | | | | $ | 72,087 | | | | |
$
|
190,303
|
| |
Less: | | | | | | | | | | | | | | | | | | | | | | | | | |
Exercise of 822,192 Series C Warrants
|
| | | | (5,638) | | | | | | — | | | | | | — | | | | |
|
(5,638)
|
| |
Fair value adjustment, March 31, 2019
|
| | | | (5,575) | | | | | | (5,253) | | | | | | (6,677) | | | | |
|
(17,505)
|
| |
Cancellation of 35,950,340 Series A Warrants
|
| | | | (24,480) | | | | | | (77,270) | | | | | | — | | | | |
|
(101,750)
|
| |
Cancellation of 22,431,506 Series E Warrants
|
| | | | — | | | | | | — | | | | | | (65,410) | | | | |
|
(65,410)
|
| |
Balance, derivative warrant liability from financing as at December 31, 2019 and 2020
|
| | | $ | — | | | | | $ | — | | | | | $ | — | | | | |
$
|
—
|
| |
| | |
2020 January
Warrants |
| |||
Inception of the January 2020 Warrants (see Note 18(e))
|
| | | | 6,145,620 | | |
Add: Deferred loss
|
| | | | (223,791) | | |
Less: January 31 exercise 1,241,490 pre-funded warrants
|
| | | | (3,885,746) | | |
Fair value adjustment, January 31 realized gain
|
| | | | (422,102) | | |
Derecognition of deferred loss
|
| | | | 93,813 | | |
Amortization of deferred loss
|
| | | | 30,240 | | |
Less: Fair value adjustment, March 31, 2020 unrealized gain
|
| | | | (1,715,390) | | |
Balance, March 31, 2020
|
| | | $ | 22,644 | | |
Less: May 28 exercise 1,185,000 Series A; 991,940 Series B
|
| | | | (969,133) | | |
FV revaluation at May 28 realized loss
|
| | | | 957,847 | | |
Derecognition of deferred loss
|
| | | | 76,473 | | |
Amortization of deferred loss
|
| | | | 22,488 | | |
Less: Fair value adjustment, June 30, 2020 unrealized gain
|
| | | | (45,897) | | |
Balance, June 30, 2020
|
| | | $ | 64,422 | | |
Amortization of deferred loss
|
| | | | 5,168 | | |
Less: Fair value adjustment, September 31, 2020 unrealized gain
|
| | | | (21,734) | | |
Balance, September 30, 2020
|
| | | $ | 47,856 | | |
Amortization of deferred loss
|
| | | | 5,168 | | |
Less: Fair value adjustment, December 31, 2020 unrealized gain
|
| | | | (41,677) | | |
Balance, December 31, 2020
|
| | | $ | 11,347 | | |
Number of warrants outstanding as of December 31, 2020
|
| | | | 250,000 | | |
| | |
2020 May
Warrants |
| |||
Inception of the May 2020 Warrants (see Note 18(e))
|
| | | | 4,526,732 | | |
Add: Deferred loss
|
| | | | (2,464,696) | | |
Amortization of deferred loss
|
| | | | 55,709 | | |
Less: Fair value adjustment, June 30, 2020 unrealized gain
|
| | | | (1,069,013) | | |
Balance, June 30, 2020
|
| | | $ | 1,048,732 | | |
Less: July 23 exercise 1,424,049 warrants
|
| | | | (2,082,598) | | |
August 17 exercise of 501,000 warrants
|
| | | | (565,221) | | |
Derecognition of deferred loss
|
| | | | 1,843,332 | | |
Amortization of deferred loss
|
| | | | 35,644 | | |
Less: Fair value adjustment, September 30, 2020 unrealized gain
|
| | | | (106,350) | | |
Balance, September 30, 2020
|
| | | $ | 173,539 | | |
Amortization of deferred loss
|
| | | | 35,644 | | |
Less: Fair value adjustment, December 31, 2020 unrealized gain
|
| | | | (465,822) | | |
Balance, December 31, 2020
|
| | | $ | (256,639) | | |
Number of warrants outstanding as of December 31, 2020
|
| | | | 648,910 | | |
| | |
2020 June
Warrants |
| |||
Inception of the June 2020 Warrants (see Note 18(e))
|
| | | | 2,404,957 | | |
Add: Deferred loss
|
| | | | (448,877) | | |
Amortization of deferred loss
|
| | | | 8,609 | | |
Less: Fair value adjustment, June 30, 2020 unrealized gain
|
| | | | (164,711) | | |
Balance, June 30, 2020
|
| | | $ | 1,799,978 | | |
Amortization of deferred loss
|
| | | | 56,571 | | |
Less: Fair value adjustment, September 30, 2020 unrealized gain
|
| | | | (489,496) | | |
Balance, September 30, 2020
|
| | | $ | 1,367,053 | | |
Amortization of deferred loss
|
| | | | 56,571 | | |
Less: Fair value adjustment, December 31, 2020 unrealized gain
|
| | | | (1,472,800) | | |
Balance, December 31, 2020
|
| | | $ | (49,176) | | |
Number of warrants outstanding as of December 31, 2020
|
| | | | 2,912,277 | | |
| | |
2020 August
Warrants |
| |||
Inception of the August 2020 Warrants (see Note 18(e))
|
| | | | 3,511,115 | | |
Add: Deferred loss
|
| | | | (3,167,758) | | |
Amortization of deferred loss
|
| | | | 212,630 | | |
Less: Fair value adjustment, September 30, 2020 unrealized gain
|
| | | | (1,315,978) | | |
Balance, September 30, 2020
|
| | | $ | (759,991) | | |
Amortization of deferred loss
|
| | | | 399,224 | | |
Less: Fair value adjustment, December 31, 2020 unrealized gain
|
| | | | (1,834,325) | | |
Balance, December 31, 2020
|
| | | $ | (2,195,092) | | |
Number of warrants outstanding as of December 31, 2020
|
| | | | 3,399,579 | | |
| | |
2020 December
Warrants |
| |||
Inception of the December 2020 Warrants (see Note 18(e))
|
| | | | 2,051,657 | | |
Add: Deferred loss
|
| | | | (1,278,414) | | |
Amortization of deferred loss
|
| | | | 40,279 | | |
Less: Fair value adjustment, December 31, 2020 unrealized gain
|
| | | | 370,769 | | |
Balance, December 31, 2020
|
| | | $ | 1,184,291 | | |
Number of warrants outstanding as of December 31, 2020
|
| | | | 6,230,803 | | |
| | |
2020 Repayment
Warrants |
| |||
Inception of the 2020 Repayment Warrants (see Note 18(e))
|
| | | | 161,720 | | |
Balance, September 30, 2020
|
| | | $ | 161,720 | | |
Less: Fair value adjustment, December 31, 2020 unrealized gain
|
| | | | (152,272) | | |
Balance, December 31, 2020
|
| | | $ | 9,448 | | |
Number of warrants outstanding as of December 31, 2020
|
| | | | 650,296 | | |
| | |
2020 Settlement
Warrants |
| |||
Inception of the 2020 Settlement Warrants (see Note 18(e))
|
| | | | 807,977 | | |
Less: Fair value adjustment, June 30, 2020 unrealized gain
|
| | | | (232,042) | | |
Balance, June 30, 2020
|
| | | $ | 575,935 | | |
Less: Fair value adjustment, September 30, 2020 unrealized gain
|
| | | | (58,645) | | |
Balance, September 30, 2020
|
| | | $ | 517,290 | | |
Less: Fair value adjustment, December 31, 2020 unrealized gain
|
| | | | (315,617) | | |
Balance, December 31, 2020
|
| | | $ | 201,673 | | |
Number of warrants outstanding as of December 31, 2020
|
| | |
|
500,000
|
| |
| | |
2017 Convertible
Notes |
| |||
Balance, convertible notes December 31, 2018
|
| | | | 14,617,336 | | |
Less: Exercise of 11,197,000 convertible notes
|
| | | | (13,095,938) | | |
Fair value adjustment
|
| | | | 3,878,791 | | |
Balance, convertible notes December 31, 2019
|
| | | $ | 5,400,189 | | |
Fair value adjustment, (unrealized) loss due to changes in credit spread
|
| | | | (17,122) | | |
Fair value adjustment, March 31, 2020 unrealized gain
|
| | | | (1,599,573) | | |
Balance, convertible notes March 31, 2020
|
| | | $ | 3,783,494 | | |
Less: Exercise of 1,016,000 convertible notes
|
| | | | (1,293,093) | | |
Fair value adjustment Settlement Warrants
|
| | | | (807,977) | | |
Fair value adjustment at maturity realized loss
|
| | | | 1,214,576 | | |
Re-payment of convertible note
|
| | | | (2,897,000) | | |
Balance, convertible notes December 31, 2020
|
| | | $ | — | | |
2017 Convertible Notes, current
|
| | | $ | — | | |
2017 Convertible Notes, non-current
|
| | | $ | — | | |
| | |
2019 Convertible
Notes |
| |||
Fair value, May 16, 2019
|
| | | | 9,775,000 | | |
Fair value adjustment,
|
| | | | (509,520) | | |
Balance, convertible notes December 31, 2019
|
| | | $ | 9,265,480 | | |
Fair value adjustment, March 31, 2020 unrealized gain
|
| | | | (1,533,410) | | |
Fair value adjustment, March 31, 2020 realized loss
|
| | | | 143,750 | | |
Fair value adjustment, (unrealized) loss due to changes in credit spread
|
| | | | (1,421,063) | | |
Balance, convertible notes March 31, 2020
|
| | | $ | 6,454,757 | | |
Fair value adjustment, June 30, 2020 unrealized loss
|
| | | | 1,370,016 | | |
Fair value adjustment, June 30, 2020 realized gain
|
| | | | (413,681) | | |
Fair value adjustment, (unrealized) loss due to changes in credit spread
|
| | | | 2,303,406 | | |
Balance, convertible notes June 30, 2020
|
| | | $ | 9,714,498 | | |
Re-payment of convertible note July 23 conversion
|
| | | | (3,613,341) | | |
Re-payment of convertible note August 17 conversion
|
| | | | (1,263,884) | | |
Fair value adjustment, Repayment warrants
|
| | | | (161,720) | | |
Fair value adjustment, September 30, 2020 unrealized loss
|
| | | | 136,921 | | |
Fair value adjustment, September 30, 2020 realized loss
|
| | | | 1,034,861 | | |
Fair value adjustment, (unrealized) loss due to changes in credit spread
|
| | | | 110,229 | | |
Balance, convertible notes September 30, 2020
|
| | | $ | 5,957,564 | | |
Fair value adjustment, December 31, 2020 unrealized loss
|
| | | | 66,203 | | |
Fair value adjustment, December 31, 2020 realized gain
|
| | | | (128,776) | | |
Fair value adjustment, (unrealized) loss due to changes in credit spread
|
| | | | 300,366 | | |
Balance, convertible notes December 31, 2020
|
| | | $ | 6,195,357 | | |
2019 Convertible Notes, current
|
| | | $ | 38,633 | | |
2019 Convertible Notes, non-current
|
| | | $ | 6,156,724 | | |
| | |
2020 Convertible
Notes |
| |||
Fair value, May 26, 2020
|
| | | | 6,449,634 | | |
Add: Deferred loss
|
| | | | (3,511,670) | | |
Amortization of deferred loss
|
| | | | 79,373 | | |
Fair value adjustment, June 30, 2020 unrealized gain
|
| | | | (438,810) | | |
Fair value adjustment, June 30, 2020 realized loss
|
| | | | 34,985 | | |
Fair value adjustment, (unrealized) loss due to changes in credit spread
|
| | | | 5,736 | | |
Balance, convertible notes June 30, 2020
|
| | | $ | 2,619,248 | | |
Add: Amortization of deferred loss
|
| | | | 216,282 | | |
Fair value adjustment, September 30, 2020 unrealized gain
|
| | | | (186,531) | | |
Fair value adjustment, September 30, 2020 realized loss
|
| | | | 99,712 | | |
Fair value adjustment, (unrealized) loss due to changes in credit spread
|
| | | | 48,015 | | |
Balance, convertible note September 30, 2020
|
| | | $ | 2,796,726 | | |
Add: Amortization of deferred loss
|
| | | | 221,283 | | |
Fair value adjustment, December 31, 2020 unrealized gain
|
| | | | (450,279) | | |
Fair value adjustment, December 31, 2020 realized gain
|
| | | | (97,172) | | |
Fair value adjustment, (unrealized) loss due to changes in credit spread
|
| | | | 145,644 | | |
Balance, convertible note December 31, 2020
|
| | | $ | 2,616,202 | | |
2020 Convertible Notes, current
|
| | | $ | 37,525 | | |
2020 Convertible Notes, non-current
|
| | | $ | 2,578,677 | | |
Derivative liability – January 2020 warrants
|
| | | | 11,347 | | |
Derivative liability – May 2020 warrants
|
| | | | (256,639) | | |
Derivative liability – June 2020 warrants
|
| | | | (49,176) | | |
Derivative liability – August 2020 warrants
|
| | | | (2,195,092) | | |
Derivative liability – December 2020 warrants
|
| | | | 1,184,291 | | |
Derivative liability – Repayment warrants
|
| | | | 9,448 | | |
Derivative liability – Settlement warrants
|
| | | | 201,673 | | |
Balance, 2020 Convertible notes and warrants and derivative liabilities
|
| | | $ | 1,522,054 | | |
2020 Convertible notes and warrants and derivative liabilities, current
|
| | | $ | 37,525 | | |
2020 Convertible notes and warrants and derivative liabilities , non-current
|
| | | $ | 1,484,529 | | |
| | |
For the years ended December 31,
|
| |||||||||||||||
| | |
2020
|
| |
2019
|
| |
2018
|
| |||||||||
Loss before income taxes
|
| | |
$
|
(29,219,098)
|
| | | | $ | (35,102,222) | | | | | $ | (107,876,382) | | |
Statutory tax rate
|
| | |
|
27.00%
|
| | | | | 27.00% | | | | | | 27.00% | | |
Recovery of income taxes based on the combined Canadian
|
| | | | | | | | | | | | | | | | | | |
federal and provincial statutory rates
|
| | |
|
(7,889,156)
|
| | | | | (9,477,600) | | | | | | (29,126,623) | | |
Share-based remuneration
|
| | |
|
1,324,569
|
| | | | | 861,248 | | | | | | 1,073,142 | | |
Unrealized gain on derivatives
|
| | |
|
(2,320,685)
|
| | | | | — | | | | | | — | | |
Effect of historical adjustments
|
| | |
|
—
|
| | | | | — | | | | | | (16,036) | | |
Other permanent differences
|
| | |
|
(250,111)
|
| | | | | 190,096 | | | | | | 20,930,238 | | |
Unrecognized deferred tax benefits
|
| | |
|
8,061,195
|
| | | | | 8,464,437 | | | | | | 7,183,316 | | |
Difference in tax rates between foreign jurisdictions and Canada
|
| | |
|
550,131
|
| | | | | (9,389) | | | | | | 63,056 | | |
Income tax (recovery)/ expense
|
| | |
$
|
(524,057)
|
| | | | $ | 28,793 | | | | | $ | 107,093 | | |
| | |
For the years ended December 31,
|
| |||||||||||||||
| | |
2020
|
| |
2019
|
| |
2018
|
| |||||||||
Current tax
|
| | |
$
|
(524,057)
|
| | | | $ | 28,793 | | | | | $ | 107,093 | | |
Deferred tax
|
| | |
|
—
|
| | | | | — | | | | | | — | | |
Income tax expense
|
| | |
$
|
(524,057)
|
| | | | $ | 28,793 | | | | | $ | 107,093 | | |
| | |
For the years ended December 31,
|
| |||||||||||||||
| | |
2020
|
| |
2019
|
| |
2018
|
| |||||||||
Investment tax credits
|
| | |
$
|
464,888
|
| | | | $ | 464,888 | | | | | $ | 528,641 | | |
Capital assets
|
| | |
|
4,287
|
| | | | | 7,392 | | | | | | 9,382 | | |
Lease liability
|
| | |
|
224,249
|
| | | | | 194,528 | | | | | | — | | |
Recognized deferred tax assets
|
| | |
$
|
693,424
|
| | | | $ | 666,808 | | | | | $ | 538,023 | | |
Set off of tax
|
| | |
|
(693,424)
|
| | | | | (666,808) | | | | | | (538,023) | | |
Investment tax credits
|
| | |
$
|
(464,888)
|
| | | | $ | (464,888) | | | | | $ | (528,641) | | |
Capital assets
|
| | |
|
(4,287)
|
| | | | | (7,392) | | | | | | (9,382) | | |
Right of use asset
|
| | |
|
(224,249)
|
| | | | | (194,528) | | | | | | — | | |
Recognized deferred tax liabilities
|
| | |
$
|
(693,424)
|
| | | | $ | (666,808) | | | | | $ | (538,023) | | |
Set off of tax
|
| | |
$
|
693,424
|
| | | | $ | 666,808 | | | | | $ | 538,023 | | |
| | |
For the years ended December 31,
|
| |||||||||||||||
| | |
2020
|
| |
2019
|
| |
2018
|
| |||||||||
Deductible temporary differences
|
| | |
$
|
10,616,227
|
| | | | $ | 7,843,252 | | | | | $ | 5,247,143 | | |
Unused tax credits
|
| | |
|
2,416,825
|
| | | | | 2,416,825 | | | | | | 3,054,186 | | |
Tax losses
|
| | |
|
318,477,703
|
| | | | | 273,792,687 | | | | | | 245,013,646 | | |
| | | |
$
|
331,510,755
|
| | | | $ | 284,052,764 | | | | | $ | 253,314,975 | | |
Expiration Date
|
| |
Amount
|
| |||
2023
|
| | | | 6,038,836 | | |
2024
|
| | | | 6,906,649 | | |
2025
|
| | | | 18,105,259 | | |
2026
|
| | | | 32,396,580 | | |
2027
|
| | | | 135,245,992 | | |
2028
|
| | | | 33,339,203 | | |
2029
|
| | | | 15,799,773 | | |
2030
|
| | | | 21,718,728 | | |
US losses
|
| | | $ | 12,885,335 | | |
Israel losses
|
| | | $ | 36,041,348 | | |
| | | | $ | 318,477,703 | | |
| | |
Common Shares
|
| |
Contributed
Surplus |
| ||||||||||||
| | |
Number
|
| |
Amount
|
| ||||||||||||
Balance, January 1, 2018
|
| | | | 102,916 | | | | | $ | 171,803,816 | | | | | $ | 23,056,846 | | |
Common Shares issued from exercise of Series B Warrants (i)
|
| | | | 1,315,281 | | | | | | 54,119,300 | | | | | | — | | |
Common Shares issued from exercise of Series C Warrants (ii)
|
| | | | 9,452 | | | | | | 15,854,206 | | | | | | — | | |
Common Shares issued from exercise of Series D Warrants (iii)
|
| | | | 1,699 | | | | | | 1,021,183 | | | | | | — | | |
Common Shares issued from exercise of Series F Warrants (iv)
|
| | | | 295,740 | | | | | | 42,990,737 | | | | | | — | | |
Common Shares issued from exercise of 2017 Notes (v)
|
| | | | 1,076,583 | | | | | | 18,582,374 | | | | | | — | | |
Common Shares issued for cash on exercise of options
|
| | | | 49 | | | | | | 88,917 | | | | | | (88,917) | | |
Share-based payments
|
| | | | — | | | | | | — | | | | | | 3,292,877 | | |
Balance, December 31, 2018
|
| | | | 2,801,720 | | | | | $ | 304,460,533 | | | | | $ | 26,260,806 | | |
Common Shares issued from public offerings (vi)
|
| | | | 2,222,222 | | | | | | 7,802,417 | | | | | | 315,611 | | |
Common Shares issued from private placement (vii)
|
| | | | 334,951 | | | | | | 1,664,662 | | | | | | — | | |
Common Shares issued from exercise Series B Warrants (viii)
|
| | | | 223,304 | | | | | | 16,931 | | | | | | — | | |
Common Shares issued from exercise of Series C Warrants (ix)
|
| | | | 822 | | | | | | 1,186,027 | | | | | | — | | |
Common Shares issued from exercise of 2017 Notes (x)
|
| | | | 3,074,136 | | | | | | 13,095,938 | | | | | | — | | |
Common Shares issued from exchange of Series A and Series E Warrants (xi)
|
| | | | 49,624 | | | | | | 234,173 | | | | | | — | | |
Share-based payments
|
| | | | — | | | | | | — | | | | | | 3,189,808 | | |
Balance, December 31, 2019
|
| | | | 8,706,779 | | | | | $ | 328,460,681 | | | | | $ | 29,766,225 | | |
Common Shares issued from public offerings Series A (xii)
|
| | | | 1,185,000 | | | | | | 4,111,950 | | | | | | — | | |
Common Shares issued from exercise of Series B | | | | | | | | | | | | | | | | | | | |
Pre-funded warrants (xiii)
|
| | | | 1,241,490 | | | | | | 3,885,746 | | | | | | — | | |
Transaction costs for both Series A and Series B
|
| | | | — | | | | | | (462,880) | | | | | | — | | |
Broker warrants (See Note 17(f))
|
| | | | — | | | | | | (82,597) | | | | | | 82,597 | | |
Common Shares issued from Warrant conversion (xiv)
|
| | | | 672,937 | | | | | | 969,133 | | | | | | — | | |
Common Shares issued from conversion of 2017 Notes (xv)
|
| | | | 500,014 | | | | | | 1,293,093 | | | | | | — | | |
Common Shares issued from public offering (xvi)
|
| | | | 3,883,036 | | | | | | 9,591,099 | | | | | | — | | |
Transaction costs for public offering
|
| | | | — | | | | | | (1,215,274) | | | | | | — | | |
Broker warrants (See Note 17(f))
|
| | | | — | | | | | | (162,467) | | | | | | 162,467 | | |
Common Shares issued from public offering (xvii)
|
| | | | 4,532,772 | | | | | | 12,238,484 | | | | | | — | | |
Transaction costs for public offering
|
| | | | — | | | | | | (1,057,302) | | | | | | — | | |
Broker warrants (See Note 17(f))
|
| | | | — | | | | | | (242,989) | | | | | | 242,989 | | |
Common Shares issued from Warrant conversion (xviii)
|
| | | | 1,925,049 | | | | | | 7,718,346 | | | | | | — | | |
Common Shares issued from public offerings Series A (xix)
|
| | | | 6,230,803 | | | | | | 5,333,567 | | | | | | — | | |
Transaction costs for public offerings Series A
|
| | | | — | | | | | | (659,410) | | | | | | — | | |
Broker warrants (See Note 17(f))
|
| | | | — | | | | | | (96,114) | | | | | | 96,114 | | |
Common Shares issued from exercise of restricted share units
|
| | | | 50,986 | | | | | | 151,938 | | | | | | (151,938) | | |
Common Shares issued from exercise of stock options
|
| | | | 50 | | | | | | 378 | | | | | | (174) | | |
Share-based payments
|
| | | | — | | | | | | — | | | | | | 4,846,776 | | |
Balance, December 31, 2020
|
| | | | 28,928,916 | | | | | $ | 369,775,383 | | | | | $ | 35,045,056 | | |
| | |
Number of
options |
| |
Weighted
average exercise price |
| |
Average
remaining contractual life (years) |
| |||||||||
Options outstanding, January 1, 2018
|
| | | | 5,707 | | | | | $ | 3,849.00 | | | | | | 2.28 | | |
Granted
|
| | | | 366,053 | | | | | | 30.31 | | | | | | | | |
Exercised
|
| | | | (49) | | | | | | 7.33 | | | | | | | | |
Forfeited
|
| | | | (1,178) | | | | | | 1,712.35 | | | | | | | | |
Expired
|
| | | | (807) | | | | | | 1,813.70 | | | | | | | | |
Options outstanding, December 31, 2018
|
| | | | 369,726 | | | | | $ | 76.78 | | | | | | 7.88 | | |
Options exercisable, December 31, 2018
|
| | | | 146,263 | | | | | $ | 127.04 | | | | | | 7.62 | | |
Granted
|
| | | | 697,150 | | | | | | 4.27 | | | | | | | | |
Exercised
|
| | | | — | | | | | | — | | | | | | | | |
Forfeited
|
| | | | (13,344) | | | | | | 58.64 | | | | | | | | |
Expired
|
| | | | (1,867) | | | | | | 4,997.06 | | | | | | | | |
Options outstanding, December 31, 2019
|
| | | | 1,051,665 | | | | | $ | 20.63 | | | | | | 7.09 | | |
Options exercisable, December 31, 2019
|
| | | | 398,596 | | | | | $ | 35.69 | | | | | | 6.97 | | |
Granted
|
| | | | 2,495,100 | | | | | | 2.48 | | | | | | | | |
Exercised
|
| | | | (50) | | | | | | 4.10 | | | | | | | | |
Forfeited
|
| | | | (468,238) | | | | | | 23.10 | | | | | | | | |
Expired
|
| | | | (1,329) | | | | | | 3,498.28 | | | | | | | | |
Options outstanding, December 31, 2020
|
| | | | 3,077,148 | | | | | $ | 4.10 | | | | | | 7.19 | | |
Options exercisable, December 31, 2020
|
| | | | 1,081,760 | | | | | $ | 6.01 | | | | | | 6.93 | | |
Exercise price
|
| |
Options
outstanding |
| |
Weighted average
remaining term (yrs) |
| |
Options
exercisable |
| |
Weighted average
remaining term (yrs) |
| ||||||||||||
$2.11
|
| | | | 486,875 | | | | | | 7.72 | | | | | | 138,125 | | | | | | 7.72 | | |
$2.17
|
| | | | 695,000 | | | | | | 7.76 | | | | | | 173,750 | | | | | | 7.76 | | |
$2.27
|
| | | | 1,500 | | | | | | 7.61 | | | | | | 1,500 | | | | | | 7.61 | | |
$2.42
|
| | | | 640,000 | | | | | | 7.47 | | | | | | 176,032 | | | | | | 7.47 | | |
$3.35
|
| | | | 493,766 | | | | | | 7.05 | | | | | | 133,495 | | | | | | 7.05 | | |
$4.10
|
| | | | 481,150 | | | | | | 6.23 | | | | | | 251,550 | | | | | | 6.23 | | |
$4.11 – $3,878.39
|
| | | | 278,857 | | | | | | 6.07 | | | | | | 207,308 | | | | | | 6.01 | | |
| | | | | 3,077,148 | | | | | | | | | | | | 1,081,760 | | | | | | | | |
Exercise price
|
| |
Options
outstanding |
| |
Weighted average
remaining term (yrs) |
| |
Options
exercisable |
| |
Weighted average
remaining term (yrs) |
| ||||||||||||
$4.10
|
| | | | 561,050 | | | | | | 7.23 | | | | | | 140,450 | | | | | | 7.23 | | |
$5.00
|
| | | | 130,950 | | | | | | 7.41 | | | | | | 32,738 | | | | | | 7.41 | | |
$8.80
|
| | | | 88,800 | | | | | | 6.92 | | | | | | 59,242 | | | | | | 6.92 | | |
$27.20
|
| | | | 263,250 | | | | | | 6.75 | | | | | | 162,268 | | | | | | 6.75 | | |
$27.30 – $9,276.86
|
| | | | 7,615 | | | | | | 4.71 | | | | | | 3,898 | | | | | | 3.69 | | |
| | | | | 1,051,665 | | | | | | | | | | | | 398,596 | | | | | | | | |
Exercise price
|
| |
Options
outstanding |
| |
Weighted average
remaining term (yrs) |
| |
Options
exercisable |
| |
Weighted average
remaining term (yrs) |
| ||||||||||||
$8.80
|
| | | | 89,900 | | | | | | 7.92 | | | | | | 29,976 | | | | | | 7.92 | | |
$27.20
|
| | | | 270,000 | | | | | | 7.75 | | | | | | 112,566 | | | | | | 7.75 | | |
$60.00
|
| | | | 1,055 | | | | | | 7.25 | | | | | | — | | | | | | — | | |
$60.01 – $8,917.93
|
| | | | 8,771 | | | | | | 4.39 | | | | | | 3,721 | | | | | | 1.48 | | |
| | | | | 369,726 | | | | | | | | | | | | 146,263 | | | | | | | | |
| | |
2020
|
| |
2019
|
| |
2018
|
| |||||||||
Weighted average fair value
|
| | |
$
|
1.99
|
| | | | $ | 3.60 | | | | | $ | 16.40 | | |
Weighted average exercise price
|
| | |
$
|
2.48
|
| | | | $ | 4.30 | | | | | $ | 30.30 | | |
Weighted average share price at grant
|
| | |
$
|
2.48
|
| | | | $ | 4.30 | | | | | $ | 30.30 | | |
Dividend yield
|
| | |
|
nil
|
| | | | | nil | | | | | | nil | | |
Volatility
|
| | |
|
124%
|
| | | | | 141% | | | | | | 72% | | |
Risk-free interest rate
|
| | |
|
0.94%
|
| | | | | 1.51% | | | | | | 2.24% | | |
Expected life
|
| |
4 years
|
| |
4 years
|
| |
4 years
|
| |||||||||
Forfeiture rate
|
| | |
|
7.00%
|
| | | | | 7.00% | | | | | | 7.00% | | |
| | |
Number of
RSUs |
| |
Weighted Average
Grant Date Fair Value Per Share |
| ||||||
Outstanding, December 31, 2018
|
| | |
|
—
|
| | | |
|
—
|
| |
Granted
|
| | | | 152,956 | | | | | $ | 2.98 | | |
Vested
|
| | | | — | | | | | | — | | |
Outstanding, December 31, 2019
|
| | |
|
152,956
|
| | | |
$
|
2.98
|
| |
Granted
|
| | | | 706,044 | | | | | $ | 2.72 | | |
Vested/Exercised
|
| | | | (50,986) | | | | | $ | 0.85 | | |
Cancelled/Forfeited
|
| | | | (30,000) | | | | | $ | 2.74 | | |
Outstanding, December 31, 2020
|
| | | | 778,014 | | | | | $ | 2.76 | | |
| | |
Number of
SARs |
| |
Weighted Average
Grant Date Fair Value Per Share |
| ||||||
Outstanding, December 31, 2019 and 2018
|
| | | | — | | | | | | — | | |
Granted
|
| | | | 1,811,768 | | | | | $ | 0.185 | | |
Vested
|
| | | | — | | | | | | — | | |
Outstanding, December 31, 2020
|
| | | | 1,811,768 | | | | | $ | 0.185 | | |
Warrants
|
| |
As at
November 17, 2017 |
| |
Issued
|
| |
Exercised
|
| |
Exchanged
|
| |
As at
December 31, 2019 and 2020 |
| |||||||||||||||
Series A
|
| | | | 25,676,368 | | | | | | 10,273,972 | | | | | | — | | | | | | (35,950,340) | | | | |
|
—
|
| |
Series B
|
| | | | 25,676,368 | | | | | | 10,273,972 | | | | | | (35,950,340) | | | | | | — | | | | |
|
—
|
| |
Series C
|
| | | | 10,273,972 | | | | | | — | | | | | | (10,273,972) | | | | | | — | | | | |
|
—
|
| |
Series D
|
| | | | 3,573,830 | | | | | | — | | | | | | (3,573,830) | | | | | | — | | | | |
|
—
|
| |
Series E
|
| | | | 22,431,506 | | | | | | — | | | | | | — | | | | | | (22,431,506) | | | | |
|
—
|
| |
Series F
|
| | | | 22,431,506 | | | | | | — | | | | | | (22,431,506) | | | | | | — | | | | |
|
—
|
| |
| | |
For the years ended
December 31, |
| |||||||||||||||
| | |
2020
|
| |
2019
|
| |
2018
|
| |||||||||
REVENUE | | | | | | | | | | | | | | | | | | | |
Europe
|
| | |
$
|
1,810,362
|
| | | |
$
|
1,863,032
|
| | | | $ | 1,600,633 | | |
Rest of the World
|
| | |
|
147,000
|
| | | |
|
229,000
|
| | | | | 148,500 | | |
| | | |
$
|
1,957,362
|
| | | |
$
|
2,092,032
|
| | | | $ | 1,749,133 | | |
| | |
For the years ended
December 31, |
| |||||||||||||||
| | |
2020
|
| |
2019
|
| |
2018
|
| |||||||||
Salaries and wages
|
| | |
$
|
10,536,409
|
| | | | $ | 9,583,936 | | | | | $ | 8,477,335 | | |
Pension plan and employment insurance
|
| | |
|
506,025
|
| | | | | 458,276 | | | | | | 418,303 | | |
Contribution to defined contribution pension plan
|
| | |
|
198,342
|
| | | | | 182,449 | | | | | | 170,358 | | |
Health benefits
|
| | |
|
765,948
|
| | | | | 651,269 | | | | | | 476,217 | | |
Cash-based employee expenses
|
| | |
$
|
12,006,724
|
| | | | $ | 10,875,930 | | | | | $ | 9,542,213 | | |
Employee termination expenses
|
| | |
|
—
|
| | | | | 26,050 | | | | | | 761,354 | | |
Share-based payments
|
| | |
|
4,905,812
|
| | | | | 3,189,808 | | | | | | 3,292,877 | | |
Total employee expenses
|
| | |
$
|
16,912,536
|
| | | | $ | 14,091,788 | | | | | $ | 13,596,444 | | |
| | |
For the years ended
December 31, |
| |||||||||||||||
| | |
2020
|
| |
2019
|
| |
2018
|
| |||||||||
EXPENSES | | | | | | | | | | | | | | | | | | | |
Selling expenses | | | | | | | | | | | | | | | | | | | |
Share-based payment
|
| | |
$
|
320,886
|
| | | | $ | 188,930 | | | | | $ | 170,416 | | |
Cash-based employee expenses
|
| | |
|
891,784
|
| | | | | 526,769 | | | | | | 352,837 | | |
Other expenses
|
| | |
|
984,133
|
| | | | | 930,286 | | | | | | 829,912 | | |
| | | |
$
|
2,196,803
|
| | | | $ | 1,645,985 | | | | | $ | 1,353,165 | | |
General and administrative expenses | | | | | | | | | | | | | | | | | | | |
Depreciation
|
| | |
|
280,949
|
| | | | | 182,202 | | | | | | 60,206 | | |
Share-based payments
|
| | |
|
2,820,369
|
| | | | | 1,748,660 | | | | | | 2,147,832 | | |
Cash-based employee expenses
|
| | |
|
3,149,313
|
| | | | | 2,725,814 | | | | | | 2,498,005 | | |
Litigation expenses
|
| | |
|
284,729
|
| | | | | 81,171 | | | | | | 540,125 | | |
Employee termination expenses
|
| | |
|
—
|
| | | | | 26,050 | | | | | | 761,354 | | |
Accretion on collaboration, license and settlement agreements provision
|
| | |
|
308,938
|
| | | | | 693,047 | | | | | | 5,129,758 | | |
Legal costs from financing activities
|
| | |
|
3,617,485
|
| | | | | 1,089,245 | | | | | | 1,608,260 | | |
Other expenses
|
| | |
|
3,619,370
|
| | | | | 3,467,543 | | | | | | 3,693,396 | | |
| | | |
$
|
14,081,153
|
| | | | $ | 10,013,732 | | | | | $ | 16,438,936 | | |
Product development and clinical trials expenses | | | | | | | | | | | | | | | | | | | |
Depreciation
|
| | |
|
487,152
|
| | | | | 459,419 | | | | | | 323,920 | | |
Share-based payments
|
| | |
|
1,764,557
|
| | | | | 1,252,218 | | | | | | 974,629 | | |
Cash-based employee expenses
|
| | |
|
7,965,627
|
| | | | | 7,623,347 | | | | | | 6,691,371 | | |
Other expenses
|
| | |
|
10,184,259
|
| | | | | 10,685,975 | | | | | | 8,011,544 | | |
| | | |
|
20,401,595
|
| | | | | 20,020,959 | | | | | | 16,001,464 | | |
TOTAL EXPENSES
|
| | |
$
|
36,679,551
|
| | | | $ | 31,680,676 | | | | | $ | 33,793,565 | | |
Depreciation per Statements of Cash Flows
|
| | |
$
|
768,101
|
| | | | $ | 641,621 | | | | | $ | 384,126 | | |
Share-based payments per Statements of Cash Flows
|
| | |
$
|
4,905,812
|
| | | | $ | 3,189,808 | | | | | $ | 3,292,877 | | |
Cash-based employee expenses (see Note 20)
|
| | |
$
|
12,006,724
|
| | | | $ | 10,875,930 | | | | | $ | 9,542,213 | | |
| | |
For the years ended
December 31, |
| |||||||||||||||
| | |
2020
|
| |
2019
|
| |
2018
|
| |||||||||
Weighted average number of Common Shares
|
| | |
|
16,667,810
|
| | | | | 6,511,672 | | | | | | 1,416,011 | | |
Loss for the year
|
| | |
$
|
(28,695,041)
|
| | | | $ | (35,131,015) | | | | | $ | (107,983,475) | | |
Basic and diluted loss per share
|
| | |
$
|
(1.72)
|
| | | | $ | (5.40) | | | | | $ | (76.26) | | |
| | |
For the years ended
December 31, |
| |||||||||||||||
| | |
2020
|
| |
2019
|
| |
2018
|
| |||||||||
Short-term employee benefits | | | | | | | | | | | | | | | | | | | |
Employee salaries and bonuses
|
| | |
$
|
2,348,709
|
| | | | $ | 2,235,926 | | | | | $ | 2,112,605 | | |
Directors fees
|
| | |
|
265,833
|
| | | | | 245,000 | | | | | | 270,000 | | |
Social security and medical care costs
|
| | |
|
80,949
|
| | | | | 77,284 | | | | | | 63,529 | | |
| | | |
|
2,695,491
|
| | | | | 2,558,210 | | | | | | 2,446,134 | | |
Post-employment benefits | | | | | | | | | | | | | | | | | | | |
Contributions to defined contribution pension plan
|
| | |
|
36,114
|
| | | | | 32,435 | | | | | | 34,162 | | |
Employee termination expense
|
| | |
|
—
|
| | | | | — | | | | | | 296,592 | | |
Share-based payments
|
| | |
|
1,726,690
|
| | | | | 1,555,857 | | | | | | 2,270,023 | | |
Total key management remuneration
|
| | |
$
|
4,458,295
|
| | | | $ | 4,146,502 | | | | | $ | 5,046,911 | | |
|
Vancouver, Canada
March 11, 2021 |
| |
|
|
| Chartered Professional Accountants | |