INTELGENX TECHNOLOGIES CORP., 10-K filed on 3/30/2016
Annual Report
Document and Entity Information (USD $)
12 Months Ended
Dec. 31, 2015
Mar. 25, 2016
Jun. 30, 2015
Document Type
10-K 
 
 
Amendment Flag
false 
 
 
Document Period End Date
Dec. 31, 2015 
 
 
Trading Symbol
igxt 
 
 
Entity Registrant Name
IntelGenx Technologies Corp. 
 
 
Entity Central Index Key
0001098880 
 
 
Current Fiscal Year End Date
--12-31 
 
 
Entity Filer Category
Smaller Reporting Company 
 
 
Entity Common Stock, Shares Outstanding
 
63,615,256 
 
Entity Current Reporting Status
Yes 
 
 
Entity Voluntary Filers
No 
 
 
Entity Well Known Seasoned Issuer
No 
 
 
Entity Public Float
 
 
$ 35,540,543 
Document Fiscal Year Focus
2015 
 
 
Document Fiscal Period Focus
FY 
 
 
Consolidated Balance Sheets (USD $)
In Thousands, unless otherwise specified
Dec. 31, 2015
Dec. 31, 2014
Current
 
 
Cash and cash equivalents
$ 2,865 
$ 4,399 
Accounts receivable
1,140 
652 
Prepaid expenses
70 
96 
Investment tax credits receivable
97 
108 
Total Current Assets
4,172 
5,255 
Leasehold Improvements and Equipment, net
4,238 
983 
Intangible Assets
46 
Security Deposits
506 
Total Assets
8,916 
6,284 
Current
 
 
Accounts payable and accrued liabilities
1,595 
466 
Current portion of long-term debt
184 
Deferred license revenue
1,245 
Total Current Liabilities
1,779 
1,711 
Deferred lease obligations
27 
Long-term debt
1,546 
Total Liabilities
3,352 
1,711 
Shareholders' Equity
 
 
Capital Stock, common shares, $0.00001 par value; 100,000,000 shares authorized; 63,615,255 shares issued and outstanding (December 31, 2014; 63,465,255 common shares)
Additional Paid-in-Capital
22,846 
22,654 
Accumulated Deficit
(16,557)
(17,848)
Accumulated Other Comprehensive Loss
(726)
(234)
Total Shareholders' Equity
5,564 
4,573 
Total Liabilities and Shareholders' Equity
$ 8,916 
$ 6,284 
Consolidated Balance Sheets (Parenthetical) (USD $)
Dec. 31, 2015
Dec. 31, 2014
Common Stock, Par Value Per Share
$ 0.00001 
$ 0.00001 
Common Stock, Shares Authorized
100,000,000 
100,000,000 
Common Stock, Shares, Issued
63,615,255 
63,465,255 
Common Stock, Shares, Outstanding
63,615,255 
63,465,255 
Consolidated Statement of Shareholders' Equity (USD $)
In Thousands, except Share data
Capital Stock [Member]
Additional Paid-In Capital [Member]
Accumulated Deficit [Member]
Accumulated Other Comprehensive Loss [Member]
Total
Beginning Balance at Dec. 31, 2013
$ 1 
$ 20,934 
$ (16,102)
$ 175 
$ 5,008 
Beginning Balance (Shares) at Dec. 31, 2013
60,984,267 
 
 
 
 
Foreign currency translation adjustment
 
 
 
(409)
(409)
Warrants exercised
 
1,619 
 
 
1,619 
Warrants exercised (Shares)
2,480,988 
 
 
 
 
Stock-based compensation
 
101 
 
 
101 
Net loss for the year
 
 
(1,746)
 
(1,746)
Ending Balance at Dec. 31, 2014
22,654 
(17,848)
(234)
4,573 
Ending Balance (Shares) at Dec. 31, 2014
63,465,255 
 
 
 
 
Foreign currency translation adjustment
 
 
 
(492)
(492)
Options exercised
 
62 
 
 
62 
Options exercised (Shares)
150,000 
 
 
 
 
Stock-based compensation
 
130 
 
 
130 
Net loss for the year
 
 
1,291 
 
1,291 
Ending Balance at Dec. 31, 2015
$ 1 
$ 22,846 
$ (16,557)
$ (726)
$ 5,564 
Ending Balance (Shares) at Dec. 31, 2015
63,615,255 
 
 
 
 
Consolidated Statements of Comprehensive Income (USD $)
In Thousands, except Share data, unless otherwise specified
12 Months Ended
Dec. 31, 2015
Dec. 31, 2014
Revenues
 
 
Royalties
$ 981 
$ 476 
License and other revenue
4,114 
1,183 
Total Revenues
5,095 
1,659 
Expenses
 
 
Cost of royalty and license revenue
433 
61 
Research and development expense
1,033 
1,075 
Selling, general and administrative expense
2,072 
2,229 
Depreciation of tangible assets
125 
35 
Amortization of intangible assets
46 
39 
Total Expenses
3,709 
3,439 
Operating Income (Loss)
1,386 
(1,780)
Interest Income
28 
34 
Financing and Interest expense
(123)
Total Other Income
(95)
34 
Income (Loss) Before Income Taxes
1,291 
(1,746)
Income taxes
Net Income (Loss)
1,291 
(1,746)
Other Comprehensive Income (Loss)
 
 
Foreign currency translation adjustment
(492)
(409)
Comprehensive Income (Loss)
$ 799 
$ (2,155)
Basic: Weighted Average Number of Shares Outstanding
63,524,023 
63,182,224 
Basic Earnings (Loss) Per Common Share
$ 0.01 
$ (0.03)
Diluted: Weighted Average Number of Shares Outstanding
70,855,146 
63,182,224 
Diluted Earnings (Loss) Per Common Share
$ 0.01 
$ (0.03)
Consolidated Statements of Cash Flows (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2015
Dec. 31, 2014
Funds Provided (Used) - Operating Activities
 
 
Net Income (Loss)
$ 1,291 
$ (1,746)
Amortization and depreciation
171 
74 
Stock-based compensation
130 
101 
Total Adjustments
1,592 
(1,571)
Changes in assets and liabilities
 
 
Accounts receivable
(488)
(508)
Prepaid expenses
26 
37 
Investment tax credits receivable
11 
160 
Security deposits
(506)
Accounts payable and accrued liabilities
1,129 
(127)
Deferred revenue
(1,245)
629 
Deferred lease obligations
27 
Net change in assets and liabilities
(1,046)
191 
Net cash provided (used) by operating activities
546 
(1,380)
Financing Activities
 
 
Issuance of term loans
1,752 
Repayment of term loans
(22)
Proceeds from exercise of warrants and stock options
62 
1,619 
Net cash provided by financing activities
1,792 
1,619 
Investing Activities
 
 
Additions to leasehold improvements and equipment
(3,380)
(403)
Net cash used in investing activities
(3,380)
(403)
Decrease in Cash and Cash Equivalents
(1,042)
(164)
Effect of Foreign Exchange on Cash and Cash Equivalents
(492)
(442)
Cash and Cash Equivalents
 
 
Beginning of Year
4,399 
5,005 
End of Year
$ 2,865 
$ 4,399 
Basis of Presentation
Basis of Presentation [Text Block]
1.

Basis of Presentation

   
 

IntelGenx Technologies Corp. (“IntelGenx” or the “Company”) prepares its financial statements in accordance with accounting principles generally accepted in the United States of America (“USA”). This basis of accounting involves the application of accrual accounting and consequently, revenues and gains are recognized when earned, and expenses and losses are recognized when incurred.

   
 

The consolidated financial statements include the accounts of the Company and its subsidiary companies. On consolidation, all inter-entity transactions and balances have been eliminated.

   
 

The financial statements are expressed in U.S. funds.

Nature of Business
Nature of Business [Text Block]
2.

Nature of Business

   
 

IntelGenx was incorporated in the State of Delaware as Big Flash Corp. on July 27, 1999. On April 28, 2006 Big Flash Corp. completed, through the Canadian holding corporation, the acquisition of IntelGenx Corp., a company incorporated in Canada on June 15, 2003.

   
 

IntelGenx is a pharmaceutical company focused on the research, development, and commercialization of pharmaceutical products based upon three proprietary delivery platforms, including an immediate release oral film “VersaFilm™”, a mucoadhesive tablet “AdVersa™”, and a multilayer controlled release tablet “VersaTab™”. The Company has an aggressive product development initiative that primarily focuses on addressing unmet market needs and focuses on utilization of the U.S. Food and Drug Administration’s (“FDA”) 505(b)(2) approval process to obtain more timely and efficient approval of new formulations of previously approved products.

   
 

The Company’s product pipeline currently consists of 10 products in various stages of development from inception through commercialization, including products for the treatment of major depressive disorder, opioid dependence, hypertension, erectile dysfunction, migraine, schizophrenia, idiopathic pulmonary fibrosis, and pain management. Of the products currently under development, 6 utilize the VersaFilm™ technology, 2 utilize the VersaTab™ technology, and one utilizes the AdVersa™ technology. In accordance with contractual commitments and for reasons of confidentiality, the Company is unable to disclose either the indicated treatment behind two of the products under development.

   
 

The Company’s first FDA-approved product, Forfivo XL®, was launched in the USA in October 2012 under a licensing partnership with Edgemont Pharmaceuticals LLP. Forfivo XL® is indicated for the treatment of Major Depressive Disorder (MDD) and is the only extended-release bupropion HCl product to provide a once-daily, 450mg dose in a single tablet. The active ingredient in Forfivo XL® is bupropion, the same active ingredient used in Wellbutrin XL®.

Adoption of New Accounting Standards
Adoption of New Accounting Standards [Text Block]
3.   Adoption of New Accounting Standards
   
 

The FASB issued ASU No. 2014-08 which enhances convergence between U.S. GAAP and International Financial Reporting Standards (IFRS). The amendments in the ASU change the criteria for reporting discontinued operations while enhancing disclosures in this area. It also addresses sources of confusion and inconsistent application related to financial reporting of discontinued operations guidance in U.S. GAAP. Under the new guidance, only disposals representing a strategic shift in operations should be presented as discontinued operations. Those strategic shifts should have a major effect on the organization’s operations and financial results. Examples include a disposal of a major geographic area, a major line of business, or a major equity method investment. In addition, the new guidance requires expands disclosures about discontinued operations that will provide financial statement users with more information about the assets, liabilities, income, and expenses of discontinued operations. The amendments in the ASU were effective in the first quarter of 2015 for public organizations with calendar year ends. The adoption of this Statement did not have a material effect on the Company’s financial position or results of operations.

Summary of Significant Accounting Policies
Summary of Significant Accounting Policies [Text Block]
4.

Summary of Significant Accounting Policies


 

Revenue Recognition

   
 

The Company recognizes revenue from research and development contracts as the contracted services are performed or when milestones are achieved, recorded as other revenue, in accordance with the terms of the specific agreements and when collection of the payment is reasonably assured. In addition, the performance criteria for the achievement of milestones are met if substantive effort was required to achieve the milestone and the amount of the milestone payment appears reasonably commensurate with the effort expended. Amounts received in advance of the recognition criteria being met, if any, are included in deferred income.

   
 

IntelGenx has license agreements that specify that certain royalties are earned by the Company on sales of licensed products in the licensed territories. Licensees usually report sales and royalty information in the 45 days after the end of the quarter in which the activity takes place and typically do not provide forward estimates or current-quarter information. Because the Company is not able to reasonably estimate the amount of royalties earned during the period in which these licensees actually ship products, royalty revenue is not recognized until the royalties are reported to the Company and the collection of these royalties is reasonably assured.

   
 

For the year ended December 31, 2015, the Company recognized royalty revenue earned under a licensing agreement totaling $946 thousand compared to $463 thousand in 2014.

   
 

For the year ended December 31, 2015, the Company recognized revenues as a result of sales milestones achieved under a licensing agreement totaling $2,808 thousand (2014: $Nil).

   
 

For the year ended December 31, 2015, the Company recognized revenues as a result of sales milestones achieved under a development and commercialization agreement in the amount of $Nil (2014: $552).

   
 

Use of Estimates

   
 

The preparation of financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. The financial statements include estimates based on currently available information and management's judgment as to the outcome of future conditions and circumstances. Significant estimates in these financial statements include the useful lives and impairment of long-lived assets, stock-based compensation costs, the investment tax credits receivable, the determination of the fair value of warrants issued as part of fundraising activities, and the resulting impact on the allocation of the proceeds between the common shares and the warrants.

   
 

Changes in the status of certain facts or circumstances could result in material changes to the estimates used in the preparation of the financial statements and actual results could differ from the estimates and assumptions.


 

Cash and Cash Equivalents

   
 

Cash and cash equivalents is comprised of cash on hand and term deposits with original maturity dates of less than three months that are stated at cost, which approximates fair value.


 

Accounts Receivable

   
 

The Company accounts for trade receivables at original invoice amount less an estimate made for doubtful receivables based on a review of all outstanding amounts on a quarterly basis. Management determines the allowance for doubtful accounts by regularly evaluating individual customer receivables and considering a customer's financial condition, credit history and current economic conditions. The Company writes off trade receivables when they are deemed uncollectible and records recoveries of trade receivables previously written-off when they receive them. Management has determined that no allowance for doubtful accounts is necessary in order to adequately cover exposure to loss in its December 31, 2015 accounts receivable (2014: $Nil).


 

Investment Tax Credits

   
 

Investment tax credits relating to qualifying expenditures are recognized in the accounts at the time at which the related expenditures are incurred and there is reasonable assurance of their realization. Management has made estimates and assumptions in determining the expenditures eligible for investment tax credits claimed. Investment tax credits received in the year ended December 31, 2015 totaled $108 thousand (2014: $268 thousand).

   
 

Leasehold Improvements and Equipment

   
 

Leasehold improvements and equipment are recorded at cost. Provisions for depreciation are based on their estimated useful lives using the methods as follows:


  On the declining balance method -  
     
         Laboratory and office equipment 20%
         Computer equipment 30%
     
  On the straight-line method -  
     
         Leasehold improvements over the lease term
         Manufacturing equipment 5 – 10 years

Upon retirement or disposal, the cost of the asset disposed of and the related accumulated depreciation are removed from the accounts and any gain or loss is reflected in income. Expenditures for repair and maintenance are expensed as incurred.

Intangible Assets

Payments made to third parties subsequent to regulatory approval are capitalized and amortized over the remaining useful life of the related product. Amounts capitalized for such payments are included in other intangibles, net of accumulated amortization.

Security Deposits

Security deposits represent a refundable deposit paid to the landlord in accordance with the lease agreement and deposits held as guarantees by the Company’s lenders in accordance with the lending facilities.

Impairment of Long-lived Assets

Long-lived assets held and used by the Company are reviewed for possible impairment whenever events or changes in circumstances indicate the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of the assets to the estimated undiscounted cash flows expected to be generated by the asset. If such assets are considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the asset exceeds the fair value thereof.

Deferred Lease Obligations

Rent under operating leases is charged to expense on a straight-line basis over the lease term. Any difference between the rent expense and the rent payable is reflected as deferred lease obligations on the balance sheet.

Deferred lease obligations are amortized on a straight-line basis over the term of the related leases. Lease term includes free rent periods as well as the construction period prior to the commencement of the lease.

 

Foreign Currency Translation

   
 

The Company's reporting currency is the U.S. dollar. The Canadian dollar is the functional currency of the Company's Canadian operations, which is translated to the United States dollar using the current rate method. Under this method, accounts are translated as follows:

Assets and liabilities - at exchange rates in effect at the balance sheet date;

Fixed assets - at historical rates

Revenue and expenses - at average exchange rates prevailing during the year;

Equity - at historical rates.

Gains and losses arising from foreign currency translation are included in other comprehensive income.

Income Taxes

The Company accounts for income taxes in accordance with FASB ASC 740 "Income Taxes". Deferred taxes are provided on the liability method whereby deferred tax assets are recognized for deductible temporary differences, and deferred tax liabilities are recognized for taxable temporary differences. Temporary differences are the differences between the reported amounts of assets and liabilities and their tax bases. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will be realized. Deferred tax assets and liabilities are adjusted for the effects of changes in tax laws and rates on the date of enactment.

Unrecognized Tax Benefits

The Company accounts for unrecognized tax benefits in accordance with FASB ASC 740 “Income Taxes”. ASC 740 prescribes a recognition threshold that a tax position is required to meet before being recognized in the financial statements and provides guidance on de-recognition, measurement, classification, interest and penalties, accounting in interim periods, disclosure and transition issues. ASC 740 contains a two-step approach to recognizing and measuring uncertain tax positions. The first step is to evaluate the tax position for recognition by determining if the weight of available evidence indicates that it is more likely than not that the position will be sustained upon ultimate settlement with a taxing authority, including resolution of related appeals or litigation processes, if any. The second step is to measure the tax benefit as the largest amount that is more than 50% likely of being realized upon ultimate settlement.

Additionally, ASC 740 requires the Company to accrue interest and related penalties, if applicable, on all tax positions for which reserves have been established consistent with jurisdictional tax laws. The Company elected to classify interest and penalties related to the unrecognized tax benefits in the income tax provision.

 

Share-Based Payments

   
 

The Company accounts for share-based payments to employees in accordance with the provisions of FASB ASC 718 "Compensation—Stock Compensation" and accordingly recognizes in its financial statements share-based payments at their fair value. In addition, the Company will recognize in the financial statements an expense based on the grant date fair value of stock options granted to employees. The expense will be recognized on a straight-line basis over the vesting period and the offsetting credit will be recorded in additional paid-in capital. Upon exercise of options, the consideration paid together with the amount previously recorded as additional paid-in capital will be recognized as capital stock. The Company estimates its forfeiture rate in order to determine its compensation expense arising from stock-based awards. The Company uses the Black-Scholes option pricing model to determine the fair value of the options.

   
 

The Company measures compensation expense for its non-employee stock-based compensation under ASC 505-50, “Accounting for Equity Instruments that are Issued to Other Than Employees for Acquiring, or in Conjunction with Selling, Goods or Services". The fair value of the option issued is used to measure the transaction, as this is more reliable than the fair value of the services received. The fair value is measured at the value of the Company’s common stock on the date that the commitment for performance by the counterparty has been reached or the counterparty’s performance is complete. The fair value of the equity instrument is charged directly to compensation expense and additional paid-in capital. For common stock issuances to non-employees that are fully vested and are for future periods, the Company classifies these issuances as prepaid expenses and expenses the prepaid expenses over the service period. At no time has the Company issued common stock for a period that exceeds one year.


 

Earnings (Loss) Per Share

   
 

Basic earnings (loss) per share is calculated based on the weighted average number of shares outstanding during the year. Any antidilutive instruments are excluded from the calculation of diluted earnings (loss) per share.



 

Fair Value Measurements

   
 

ASC 820 applies to all assets and liabilities that are being measured and reported on a fair value basis. ASC 820 requires disclosure that establishes a framework for measuring fair value in US GAAP, and expands disclosure about fair value measurements. This statement enables the reader of the financial statements to assess the inputs used to develop those measurements by establishing a hierarchy for ranking the quality and reliability of the information used to determine fair values. The statement requires that assets and liabilities carried at fair value be classified and disclosed in one of the following three categories:


  Level 1: Quoted market prices in active markets for identical assets or liabilities.
  Level 2: Observable market based inputs or unobservable inputs that are corroborated by market data.
  Level 3: Unobservable inputs that are not corroborated by market data.

  In determining the appropriate levels, the Company performs a detailed analysis of the assets and liabilities that are subject to ASC 820. At each reporting period, all assets and liabilities for which the fair value measurement is based on significant unobservable inputs are classified as Level 3. There are no assets or liabilities measured at fair value as at December 31, 2015.
   
 

Fair Value of Financial Instruments

   
 

The fair value represents management’s best estimates based on a range of methodologies and assumptions. The carrying value of receivables and payables arising in the ordinary course of business and the investment tax credits receivable approximate fair value because of the relatively short period of time between their origination and expected realization.


 

Recent Accounting Pronouncements

   
 

ASU 2015-16, Business Combinations (Topic 805): Simplifying the Accounting for Measurement-Period Adjustments

   
 

The FASB issued this Update which requires that an acquirer recognize adjustments to provisional amounts that are identified during the measurement period in the reporting period in which the adjustment amounts are determined. The amendments in this Update require that the acquirer record, in the same period’s financial statements, the effect on earnings of changes in depreciation, amortization, or other income effects, if any, as a result of the change to the provisional amounts, calculated as if the accounting had been completed at the acquisition date. The amendments in this Update require an entity to present separately on the face of the income statement or disclose in the notes the portion of the amount recorded in current-period earnings by line item that would have been recorded in previous reporting periods if the adjustment to the provisional amounts had been recognized as of the acquisition date.

   
 

The amendments in this Update apply to all entities that have reported provisional amounts for items in a business combination for which the accounting is incomplete by the end of the reporting period in which the combination occurs and during the measurement period have an adjustment to provisional amounts recognized.

   
 

For public business entities, the amendments in this Update are effective for fiscal years beginning after December 15, 2015, including interim periods within those fiscal years. The amendments in this Update should be applied prospectively to adjustments to provisional amounts that occur after the effective date of this Update with earlier application permitted for financial statements that have not yet been issued.

   
 

For all other entities, the amendments in this Update are effective for fiscal years beginning after December 15, 2016, and interim periods within fiscal years beginning after December 15, 2017. The adoption of this Statement is not expected to have a material effect on the Company`s financial position or results of operations.

   
 

ASU 2015-14, Revenue From Contracts With Customers (Topic 606), Deferral of the Effective Date


 

The FASB and IASB (the Boards) have issued converged standards on revenue recognition. ASU No. 2014-09 affects any entity using U.S. GAAP that either enters into contracts with customers to transfer goods or services or enters into contracts for the transfer of nonfinancial assets unless those contracts are within the scope of other standards. This ASU will supersede the revenue recognition requirements in Topic 605, Revenue Recognition and most industry-specific guidance. The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. To achieve that core principle, an entity should apply the following steps:


 

Step 1: Identify the contract(s) with a customer.

 

Step 2: Identify the performance obligations in the contract.

 

Step 3: Determine the transaction price.

 

Step 4: Allocate the transaction price to the performance obligations in the contract.

 

Step 5: Recognize revenue when (or as) the entity satisfies a performance obligation.

Public business entities, certain not-for-profit entities, and certain employee benefit plans should apply the guidance in Update 2014-09 to annual reporting periods beginning after December 15, 2017, including interim reporting periods within that reporting period. Earlier application is permitted only as of annual reporting periods beginning after December 15, 2016, including interim reporting periods within that reporting period.

All other entities should apply the guidance in Update 2014-09 to annual reporting periods beginning after December 15, 2018, and interim reporting periods within annual reporting periods beginning after December 15, 2019. All other entities may apply the guidance in Update 2014-09 earlier as of an annual reporting period beginning after December 15, 2016, including interim reporting periods within that reporting period. All other entities also may apply the guidance in Update 2014-09 earlier as of an annual reporting period beginning after December 15, 2016, and interim reporting periods within annual reporting periods beginning one year after the annual reporting period in which the entity first applies the guidance in Update 2014-09.

This ASU is to be applied retrospectively, with certain practical expedients allowed. The Company is currently evaluating the impact of this Statement on its consolidated financial statements.

ASU 2015-11, Inventory (Topic 330): Simplifying the Measurement of Inventory

The amendments in this Update more closely align the measurement of inventory in GAAP with the measurement of inventory in International Financial Reporting Standards (IFRS). An entity should measure inventory within the scope of this Update at the lower of cost and net realizable value. Net realizable value is the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. Subsequent measurement is unchanged for inventory measured using LIFO or the retail inventory method.

The Board has amended some of the other guidance in Topic 330 to more clearly articulate the requirements for the measurement and disclosure of inventory. However, the Board does not intend for those clarifications to result in any changes in practice. Other than the change in the subsequent measurement guidance from the lower of cost or market to the lower of cost and net realizable value for inventory within the scope of this Update, there are no other substantive changes to the guidance on measurement of inventory.

 

The amendments in this Update do not apply to inventory that is measured using last-in, first-out (LIFO) or the retail inventory method. The amendments apply to all other inventory, which includes inventory that is measured using first-in, first-out (FIFO) or average cost.

   
 

For public business entities, the amendments in this Update are effective for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years. For all other entities, the amendments in this Update are effective for fiscal years beginning after December 15, 2016, and interim periods within fiscal years beginning after December 15, 2017. The amendments in this Update should be applied prospectively with earlier application permitted as of the beginning of an interim or annual reporting period. The adoption of this Statement is not expected to have a material effect on the Company`s financial position or results of operations.

   
 

ASU 2015-03, Interest - Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs

   
 

The amendments in ASU 2015-03 are intended to simplify the presentation of debt issuance costs. These amendments require that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. The recognition and measurement guidance for debt issuance costs are not affected by the amendments in this ASU.

   
 

The amendments are effective for public business entities for financial statements issued for fiscal years beginning after December 15, 2015, and interim periods within those fiscal years. Early adoption is permitted for financial statements that have not been previously issued. The adoption of this Statement is not expected to have a material effect on the Company`s financial position or results of operations.

   
 

ASU 2015-01, Income Statement - Extraordinary and Unusual Items (Subtopic 225-20): Simplifying Income Statement Presentation by Eliminating the Concept of Extraordinary Items

   
 

The amendments in ASU 2015-01 eliminate from U.S. GAAP the concept of extraordinary items. Subtopic 225-20, Income Statement - Extraordinary and Unusual Items, required that an entity separately classify, present, and disclose extraordinary events and transactions. The FASB heard from stakeholders that the concept of extraordinary items causes uncertainty because it is unclear when an item should be considered both unusual and infrequent. Additionally, some stakeholders said that although users find information about unusual or infrequent events and transactions useful, they do not find the extraordinary item classification and presentation necessary to identify those events and transactions. Other stakeholders noted that it is extremely rare in current practice for a transaction or event to meet the requirements to be presented as an extraordinary item. This ASU will also align more closely U.S. GAAP income statement presentation guidance with IAS 1, Presentation of Financial Statements, which prohibits the presentation and disclosure of extraordinary items. The amendments are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015. A reporting entity may apply the amendments prospectively. A reporting entity also may apply the amendments retrospectively to all prior periods presented in the financial statements. Early adoption is permitted provided that the guidance is applied from the beginning of the fiscal year of adoption. The adoption of this Statement is not expected to have a material effect on the Company’s financial position or results of operations.

 

ASU 2014-15, Presentation of Financial Statements —Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern

   
 

The FASB has issued ASU No. 2014-15 which is intended to define management’s responsibility to evaluate whether there is substantial doubt about an organization’s ability to continue as a going concern and to provide related footnote disclosures. This ASU provides guidance to an organization’s management, with principles and definitions that are intended to reduce diversity in the timing and content of disclosures that are commonly provided by organizations today in the financial statement footnotes. The amendments are effective for annual periods ending after December 15, 2016, and interim periods within annual periods beginning after December 15, 2016. Early application is permitted for annual or interim reporting periods for which the financial statements have not previously been issued. The Company is currently evaluating the impact of this Statement on its consolidated financial statements.

   
 

ASU 2014-12, Compensation – Stock Compensation (Topic 718): Accounting for shared-based payments when the terms of an award provide that a performance target could be achieved after the requisite service period.

   
 

The FASB has issued ASU No. 2014-12 which requires that a performance target that affects vesting and that could be achieved after the requisite service period be treated as a performance condition. A reporting entity should apply existing guidance in Topic 718, Compensation – Stock Compensation, as it relates to awards with performance conditions that affect vesting to account for such awards. The performance target should not be reflected in estimating the grant-date fair value of the award. Compensation cost should be recognized in the period in which it becomes probable that the performance target will be achieved. The amendments in this ASU are effective for annual periods and interim periods within those annual periods beginning after December 15, 2015. Earlier adoption is permitted. The adoption of this Statement is not expected to have a material effect on the Company’s financial position or results of operations.

   
 

ASU 2016-01 – Financial Instruments – Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities

   
 

In January 2016, the FASB issued ASU 2016-01, which will significantly change practice for all entities. The targeted amendments to existing guidance are expected to include:

     
  1.

Equity investments that do not result in consolidation and are not accounted for under the equity method would be measured at fair value through net income, unless they qualify for the proposed practicability exception for investments that do not have readily determinable fair values.

     
  2.

Changes in instrument-specific credit risk for financial liabilities that are measured under the fair value option would be recognized in other comprehensive income.

     
  3.

Entities would make the assessment of the realizability of a deferred tax asset (DTA) related to an available- for-sale (AFS) debt security in combination with the entity’s other DTAs. The guidance would eliminate one method that is currently acceptable for assessing the realizability of DTAs related to AFS debt securities. That is, an entity would no longer be able to consider its intent and ability to hold debt securities with unrealized losses until recovery.

     
  4.

Disclosure of the fair value of financial instruments measured at amortized cost would no longer be required for entities that not public business entities.

For public business entities, the amendments in this Update are effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. For all other entities, the amendments in this Update are effective for fiscal years beginning after December 15, 2018, and interim periods within fiscal years beginning after December 15, 2019.

Entities would be able to early adopt a provision that would allow them to recognize the fair value change from own credit in other comprehensive income for financial liabilities measured under the fair value option, and entities that are not public business entities would be able to adopt a provision to eliminate the fair value disclosures for financial instruments not recognized at fair value. Non-public business entities would be able to early adopt the guidance as of the effective date for public business entities. The Company is currently evaluating the impact of this Statement on its consolidated financial statements.

ASU 2015-17 – Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes (“ASU 2015-17”)

In November 2015, the FASB issued ASU 2015-17, which require that deferred tax liabilities and assets be classified as noncurrent in a classified statement of financial position.

The amendments apply to all entities that present a classified statement of financial position. The current requirement that deferred tax liabilities and assets of a tax-paying component of an entity be offset and presented as a single amount is not affected by the amendments.

For all other entities, the amendments are effective for financial statements issued for annual periods beginning after December 15, 2017, and interim periods within annual periods beginning after December 15, 2018.

The Company is currently evaluating the impact of its pending adoption of ASU 2015-17 on its financial statements.

Leasehold Improvements and Equipment
Leasehold Improvements and Equipment [Text Block]
5.

Leasehold improvements and Equipment


 

 

              2015     2014  
 

 

        Accumulated     Net Carrying     Net Carrying  
 

In U.S. $ thousands

  Cost     Depreciation     Amount     Amount  
 

 

                       
 

Manufacturing equipment

$ 1,050   $ 0   $ 1,050   $ 520  
 

Laboratory and office equipment

  1,193     372     821     241  
 

Computer equipment

  64     47     17     15  
 

Leasehold improvements

  2,427     77     2,350     207  
 

 

                       
 

 

$ 4,734   $ 496   $ 4,238   $ 983  

 

As of December 31, 2015 no depreciation has been recorded on manufacturing equipment as this equipment is not yet in use.

   
 

As of December 31, 2015 no depreciation has been recorded on laboratory equipment in the amount of $471 as the equipment is not yet in use.

Intangible Assets
Intangible Assets [Text Block]
6.

Intangible Assets

   
 

As of December 31, 2015 NDA acquisition costs representing the net book value of the final progress payment related to the acquisition of 100% ownership of Forfivo XL® were fully amortized.

Deferred License Revenue
Deferred License Revenue [Text Block]
7.

Deferred License Revenue

   
 

Deferred license revenue represents upfront payments received for the granting of licenses to the Company’s patents, intellectual property, and proprietary technology, for commercialization. Deferred license revenue is recognized in income over the period where sales of the licensed products will occur.

   
 

Pursuant to the execution of a licensing agreement for Forfivo XL®, IntelGenx received an upfront fee from Edgemont Pharmaceuticals (“Edgemont”) in the first quarter of 2012, which IntelGenx recognized as deferred license revenue. The deferred license revenue was amortized in income over a period of 39 months, which was the minimum period where sales of Forfivo XL® are expected to be exclusive.

   
 

In the fourth quarter of 2014, Edgemont exercised its right to extend the license for the exclusive marketing of Forfivo XL®. In accordance with the terms for exercising such right, IntelGenx invoiced $1.25 million to Edgemont and recognized the full amount as deferred revenue, which was recognized as revenue from October 2014 through September 2015.

   
 

As of December 31, 2015, the entire deferred revenue balance has been recognized as revenue (December 31, 2014 - $1.24 million that had not been recognized as revenue).

Bank indebtedness
Bank indebtedness [Text Block]
8.

Bank Indebtedness

   
 

The Company's credit facility is subject to review annually and consists of an operating demand line of credit of up to CAD$250 thousand and corporate credits cards of up to CAD$55 thousand. Borrowings under the operating demand line of credit bear interest at the Bank’s prime lending rate plus 2%. The credit facility and term loan (see note 9) are secured by a first ranking movable hypothec on all present and future movable property of the Company and a 50% guarantee by Export Development Canada, a Canadian Crown corporation export credit agency. The terms of the banking agreement require the Company to comply with certain debt service coverage and debt to net worth financial covenants on an annual basis at the end of the Company’s fiscal year. As at December 31, 2015, the Company was in compliance with its financial covenants and has not drawn on its credit facility.

Long-term debt
Long-term debt [Text Block]
9.

Long-term debt

   
 

The components of the Company’s debt are as follows:


      December 31, 2015     December 31, 2014  
  In U.S.$ thousands   $    

$

 
               
               
  Term loan facility   1,188     -  
  Secured loan   542     -  
  Total debt   1,730     -  
               
  Less: current portion   184     -  
               
  Total long-term debt   1,546     -  

The Company’s term loan facility consists of a total of CAD$3.5 million, consisting of CAD$1.6 million bearing interest at the Bank’s prime lending rate plus 2.50%, and CAD$1.8 million bearing interest at a fixed rate to be determined at drawdown. The term loan is subject to the same security and financial covenants as the bank indebtedness (see note 8).

The CAD$1.8 million tranche of the term loan will be disbursed subsequent to meeting certain conditions. There is a moratorium on capital repayments for the first 6 months of each drawdown, at which point the term loan will be repayable in monthly instalments over 60 months.

The secured loan has a principal balance authorized of CAD$1 million of which CAD$0.75 million was disbursed as at December 2015, bearing interest at prime plus 7.3%, reimbursable in monthly principal payments of CAD$12,5 thousand from January 2017 to December 2021. The loan is secured by a second ranking on all present and future property of the Company. The terms of the banking agreement require the Company to comply with certain debt service coverage and debt to net worth financial covenants on an annual basis at the end of the Company’s fiscal year. As at December 31, 2015, the Company was in compliance with its financial covenants.

 

Principal repayments due in each of the next five years are as follows:


  In U.S.$ thousands    
  2016 $184  
  2017 344  
  2018 344  
  2019 344  
  2020 344  
  Thereafter 170  
Commitments
Commitments [Text Block]
10.

Commitments

   
 

On April 24, 2015 the Company entered into an agreement to lease approximately 17,000 square feet in a property located at 6420 Abrams, St-Laurent, Québec. The Lease has a 10 year and 6 -month term commencing September 1, 2015. IntelGenx has retained two options to extend the lease, with each option being for an additional five years. Under the terms of the lease IntelGenx is required to pay base rent of approximately CAD$110 thousand (approximately $80 thousand) per year, which will increase at a rate of CAD$0.25 ($0.18) per square foot every two years. IntelGenx is using the newly leased space for manufacturing its oral film VersaFilm™ products, enlarging research and development capabilities, and for administration.

   
 

The aggregate minimum rentals, exclusive of other occupancy charges, for property leases expiring in 2026, are approximately $866 thousand, as follows:


  In U.S.$ thousands    
  2016 $66  
  2017 81  
  2018 83  
  2019 84  
  2020 86  
  Thereafter 466  

On March 3, 2015, the Company signed an agreement in the amount of Euro1,490 thousand with a supplier with respect to the fabrication of customized manufacturing equipment. As at December 31, 2015, an amount of Euro298 thousand had been paid.

On May 7, 2010, the Company executed a Project Transfer Agreement with one of its former development partners whereby the Company acquired full rights to, and ownership of, Forfivo XL®, a novel, high strength formulation of Bupropion hydrochloride, the active ingredient in Wellbutrin XL®. In accordance with the Project Transfer Agreement, and following commercial launch of Forfivo XL® in October 2012, the Company is required, after recovering an aggregate $200 thousand for management fees previously paid, to pay its former development partner 10% of net income received from the sale of Forfivo XL®. In December 2014 the Company fully recovered said management fees and owed approximately $58 thousand to its former development partner that was remitted in February 2015. During fiscal year 2015 the amount due was $433.

Capital Stock
Capital Stock [Text Block]
11.

Capital Stock


      2015     2014  
  Authorized -            
  100,000,000 common shares of $0.00001 par value            
    20,000,000 preferred shares of $0.00001 par value            
  Issued -            
    63,615,255 (December 31, 2014: 63,465,255) common shares $ 636   $ 635  

 

Stock options

   
 

During the year ended December 31, 2015 a total of 150,000 stock options were exercised for 150,000 common shares having a par value of $0 thousand in aggregate, for cash consideration of $62 thousand, resulting in an increase in additional paid-in capital of $62 thousand. No stock options were exercised in the year ended December 31, 2014.

   
 

Stock-based compensation of $130 thousand and $101 thousand was recorded during the year ended December 31, 2015 and 2014 respectively. The entire amounts expensed in 2015 and 2014 relate to stock options granted to employees and directors. As at December 31, 2015 the Company has $158 thousand (2014 - $74 thousand) of unrecognized stock-based compensation.

   
 

Warrants

   
 

No warrants were exercised during the year ended December 31, 2015. In the year ended December 31, 2014 a total of 2,480,988 warrants were exercised for 2,480,988 common shares having a par value of $Nil in aggregate, for cash consideration of approximately $1,619 thousand, resulting in an increase in additional paid-in capital of approximately $1,619 thousand.

Income Tax
Income Tax [Text Block]
13.

Income Taxes

   
 

Income taxes reported differ from the amount computed by applying the statutory rates to net income (losses). The reasons are as follows:


 

In U.S.$ thousands 

  2015     2014  
 

Statutory income taxes

$ 387   $ (429 )
 

Net operating losses for which no tax benefits have been recorded

  -     238  
 

Net operating losses used for which no tax benefit had been recorded

  (484 )   -  
 

Excess (deficiency) of depreciation over capital cost allowance

  (98 )   9  
 

Non-deductible expenses

  44     26  
 

Undeducted research and development expenses

  178     181  
 

Investment tax credit

  (27 )   (25 )
 

 

           
 

 

$ -   $   -  

 

The major components of the deferred tax assets classified by the source of temporary differences are as follows:


 

In U.S.$ thousands 

  2015     2014  
 

Leasehold improvements and equipment

$ 117   $ 9  
 

Net operating losses carryforward

  1,770     2,582  
 

Undeducted research and development expenses

  1,274     1,355  
 

Non-refundable tax credits carryforward

  1,022     1,102  
 

 

           
 

 

  4,183     5,048  
 

Valuation allowance

  (4,183 )   (5,048 )
 

 

$ -   $   -  

As at December 31, 2015, management determined that enough uncertainty existed relative to the realization of deferred income tax asset balances to warrant the application of a full valuation allowance. Although management believes that certain of the net operating losses will be applied against earnings in 2016, management continues to believe that enough uncertainty exists relative to the realization of the remaining deferred income tax asset balances such that no recognition of deferred income tax assets is warranted.

There were Canadian and provincial net operating losses of approximately $6,462 thousand (2014: $9,530 thousand) and $6,725 thousand (2014: $9,683 thousand) respectively, that may be applied against earnings of future years. Utilization of the net operating losses is subject to significant limitations imposed by the change in control provisions. Canadian and provincial losses will be expiring between 2027 and 2035. A portion of the net operating losses may expire before they can be utilized.

As at December 31, 2015, the Company had non-refundable tax credits of $1,022 thousand (2014: $1,102 thousand) of which $8 thousand is expiring in 2026, $9 thousand is expiring in 2027, $163 thousand is expiring in 2028, $143 thousand is expiring in 2029, $122 thousand is expiring in 2030, $129 thousand is expiring in 2031, $162 thousand is expiring in 2032 and $108 thousand is expiring in 2033, $82 thousand expiring in 2034 and $96 thousand is expiring in 2035 and undeducted research and development expenses of $6,315 thousand (2014: $4,805 thousand) with no expiration date.

The deferred tax benefit of these items was not recognized in the accounts as it has been fully provided for.

Unrecognized Tax Benefits

The Company does not have any unrecognized tax benefits.

 

Tax Years and Examination

   
 

The Company files tax returns in each jurisdiction in which it is registered to do business. For each jurisdiction a statute of limitations period exists. After a statute of limitations period expires, the respective tax authorities may no longer assess additional income tax for the expired period. Similarly, the Company is no longer eligible to file claims for refund for any tax that it may have overpaid. The following table summarizes the Company’s major tax jurisdictions and the tax years that remain subject to examination by these jurisdictions as of December 31, 2015:


Tax Jurisdictions   Tax Years
Federal - Canada   2012 and onward
Provincial - Quebec   2012and onward
Federal - USA   2012 onward
Statement of Cash Flows Information
Statement of Cash Flows Information [Text Block]
14.

    Statement of Cash Flows Information


  In US$ thousands   2015     2014  
               
  Additional Cash Flow Information:            
  Interest paid $ 23   $ 5  
Related Party Transactions
Related Party Transactions [Text Block]
15.

Related party transactions

   
 

Included in management salaries are $3 thousand (2014: $29 thousand) for options granted to the Chief Executive Officer, $9 thousand (2014: $Nil) for options granted to the Vice President, Operations, and $39 thousand (2014: $43 thousand) for options granted to two Chief Financial Officers under the 2006 Stock Option Plan and $70 thousand (2014: $17 thousand) for options granted to non-employee directors.

   
 

Included in general and administrative expenses are director fees of $250 thousand (2014: $187 thousand) comprising an annual stipend.

   
 

The above related party transactions have been measured at the exchange amount which is the amount of the consideration established and agreed upon by the related parties.

Basic and Diluted Earnings (Loss) Per Common Share
Basic and Diluted Earnings (Loss) Per Common Share [Text Block]
16.

Basic and Diluted Earnings (Loss) Per Common Share

   
 

Basic and diluted earnings (loss) per common share is calculated based on the weighted average number of shares outstanding during the year. Common equivalent shares from stock options and warrants are also included in the diluted per share calculations unless the effect of the inclusion would be antidilutive.

Summary of Significant Accounting Policies (Policies)
 

Revenue Recognition

   
 

The Company recognizes revenue from research and development contracts as the contracted services are performed or when milestones are achieved, recorded as other revenue, in accordance with the terms of the specific agreements and when collection of the payment is reasonably assured. In addition, the performance criteria for the achievement of milestones are met if substantive effort was required to achieve the milestone and the amount of the milestone payment appears reasonably commensurate with the effort expended. Amounts received in advance of the recognition criteria being met, if any, are included in deferred income.

   
 

IntelGenx has license agreements that specify that certain royalties are earned by the Company on sales of licensed products in the licensed territories. Licensees usually report sales and royalty information in the 45 days after the end of the quarter in which the activity takes place and typically do not provide forward estimates or current-quarter information. Because the Company is not able to reasonably estimate the amount of royalties earned during the period in which these licensees actually ship products, royalty revenue is not recognized until the royalties are reported to the Company and the collection of these royalties is reasonably assured.

   
 

For the year ended December 31, 2015, the Company recognized royalty revenue earned under a licensing agreement totaling $946 thousand compared to $463 thousand in 2014.

   
 

For the year ended December 31, 2015, the Company recognized revenues as a result of sales milestones achieved under a licensing agreement totaling $2,808 thousand (2014: $Nil).

   
 

For the year ended December 31, 2015, the Company recognized revenues as a result of sales milestones achieved under a development and commercialization agreement in the amount of $Nil (2014: $552).

   
 

Use of Estimates

   
 

The preparation of financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. The financial statements include estimates based on currently available information and management's judgment as to the outcome of future conditions and circumstances. Significant estimates in these financial statements include the useful lives and impairment of long-lived assets, stock-based compensation costs, the investment tax credits receivable, the determination of the fair value of warrants issued as part of fundraising activities, and the resulting impact on the allocation of the proceeds between the common shares and the warrants.

   
 

Changes in the status of certain facts or circumstances could result in material changes to the estimates used in the preparation of the financial statements and actual results could differ from the estimates and assumptions.

 

Cash and Cash Equivalents

   
 

Cash and cash equivalents is comprised of cash on hand and term deposits with original maturity dates of less than three months that are stated at cost, which approximates fair value.

 

Accounts Receivable

   
 

The Company accounts for trade receivables at original invoice amount less an estimate made for doubtful receivables based on a review of all outstanding amounts on a quarterly basis. Management determines the allowance for doubtful accounts by regularly evaluating individual customer receivables and considering a customer's financial condition, credit history and current economic conditions. The Company writes off trade receivables when they are deemed uncollectible and records recoveries of trade receivables previously written-off when they receive them. Management has determined that no allowance for doubtful accounts is necessary in order to adequately cover exposure to loss in its December 31, 2015 accounts receivable (2014: $Nil).

 

Investment Tax Credits

   
 

Investment tax credits relating to qualifying expenditures are recognized in the accounts at the time at which the related expenditures are incurred and there is reasonable assurance of their realization. Management has made estimates and assumptions in determining the expenditures eligible for investment tax credits claimed. Investment tax credits received in the year ended December 31, 2015 totaled $108 thousand (2014: $268 thousand).

   
 

Leasehold Improvements and Equipment

   
 

Leasehold improvements and equipment are recorded at cost. Provisions for depreciation are based on their estimated useful lives using the methods as follows:


  On the declining balance method -  
     
         Laboratory and office equipment 20%
         Computer equipment 30%
     
  On the straight-line method -  
     
         Leasehold improvements over the lease term
         Manufacturing equipment 5 – 10 years

Upon retirement or disposal, the cost of the asset disposed of and the related accumulated depreciation are removed from the accounts and any gain or loss is reflected in income. Expenditures for repair and maintenance are expensed as incurred.

Intangible Assets

Payments made to third parties subsequent to regulatory approval are capitalized and amortized over the remaining useful life of the related product. Amounts capitalized for such payments are included in other intangibles, net of accumulated amortization.

Security Deposits

Security deposits represent a refundable deposit paid to the landlord in accordance with the lease agreement and deposits held as guarantees by the Company’s lenders in accordance with the lending facilities.

Impairment of Long-lived Assets

Long-lived assets held and used by the Company are reviewed for possible impairment whenever events or changes in circumstances indicate the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of the assets to the estimated undiscounted cash flows expected to be generated by the asset. If such assets are considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the asset exceeds the fair value thereof.

Deferred Lease Obligations

Rent under operating leases is charged to expense on a straight-line basis over the lease term. Any difference between the rent expense and the rent payable is reflected as deferred lease obligations on the balance sheet.

Deferred lease obligations are amortized on a straight-line basis over the term of the related leases. Lease term includes free rent periods as well as the construction period prior to the commencement of the lease.

 

Foreign Currency Translation

   
 

The Company's reporting currency is the U.S. dollar. The Canadian dollar is the functional currency of the Company's Canadian operations, which is translated to the United States dollar using the current rate method. Under this method, accounts are translated as follows:

Assets and liabilities - at exchange rates in effect at the balance sheet date;

Fixed assets - at historical rates

Revenue and expenses - at average exchange rates prevailing during the year;

Equity - at historical rates.

Gains and losses arising from foreign currency translation are included in other comprehensive income.

Income Taxes

The Company accounts for income taxes in accordance with FASB ASC 740 "Income Taxes". Deferred taxes are provided on the liability method whereby deferred tax assets are recognized for deductible temporary differences, and deferred tax liabilities are recognized for taxable temporary differences. Temporary differences are the differences between the reported amounts of assets and liabilities and their tax bases. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will be realized. Deferred tax assets and liabilities are adjusted for the effects of changes in tax laws and rates on the date of enactment.

Unrecognized Tax Benefits

The Company accounts for unrecognized tax benefits in accordance with FASB ASC 740 “Income Taxes”. ASC 740 prescribes a recognition threshold that a tax position is required to meet before being recognized in the financial statements and provides guidance on de-recognition, measurement, classification, interest and penalties, accounting in interim periods, disclosure and transition issues. ASC 740 contains a two-step approach to recognizing and measuring uncertain tax positions. The first step is to evaluate the tax position for recognition by determining if the weight of available evidence indicates that it is more likely than not that the position will be sustained upon ultimate settlement with a taxing authority, including resolution of related appeals or litigation processes, if any. The second step is to measure the tax benefit as the largest amount that is more than 50% likely of being realized upon ultimate settlement.

Additionally, ASC 740 requires the Company to accrue interest and related penalties, if applicable, on all tax positions for which reserves have been established consistent with jurisdictional tax laws. The Company elected to classify interest and penalties related to the unrecognized tax benefits in the income tax provision.

 

Share-Based Payments

   
 

The Company accounts for share-based payments to employees in accordance with the provisions of FASB ASC 718 "Compensation—Stock Compensation" and accordingly recognizes in its financial statements share-based payments at their fair value. In addition, the Company will recognize in the financial statements an expense based on the grant date fair value of stock options granted to employees. The expense will be recognized on a straight-line basis over the vesting period and the offsetting credit will be recorded in additional paid-in capital. Upon exercise of options, the consideration paid together with the amount previously recorded as additional paid-in capital will be recognized as capital stock. The Company estimates its forfeiture rate in order to determine its compensation expense arising from stock-based awards. The Company uses the Black-Scholes option pricing model to determine the fair value of the options.

   
 

The Company measures compensation expense for its non-employee stock-based compensation under ASC 505-50, “Accounting for Equity Instruments that are Issued to Other Than Employees for Acquiring, or in Conjunction with Selling, Goods or Services". The fair value of the option issued is used to measure the transaction, as this is more reliable than the fair value of the services received. The fair value is measured at the value of the Company’s common stock on the date that the commitment for performance by the counterparty has been reached or the counterparty’s performance is complete. The fair value of the equity instrument is charged directly to compensation expense and additional paid-in capital. For common stock issuances to non-employees that are fully vested and are for future periods, the Company classifies these issuances as prepaid expenses and expenses the prepaid expenses over the service period. At no time has the Company issued common stock for a period that exceeds one year.

 

Earnings (Loss) Per Share

   
 

Basic earnings (loss) per share is calculated based on the weighted average number of shares outstanding during the year. Any antidilutive instruments are excluded from the calculation of diluted earnings (loss) per share.

 

Fair Value Measurements

   
 

ASC 820 applies to all assets and liabilities that are being measured and reported on a fair value basis. ASC 820 requires disclosure that establishes a framework for measuring fair value in US GAAP, and expands disclosure about fair value measurements. This statement enables the reader of the financial statements to assess the inputs used to develop those measurements by establishing a hierarchy for ranking the quality and reliability of the information used to determine fair values. The statement requires that assets and liabilities carried at fair value be classified and disclosed in one of the following three categories:


  Level 1: Quoted market prices in active markets for identical assets or liabilities.
  Level 2: Observable market based inputs or unobservable inputs that are corroborated by market data.
  Level 3: Unobservable inputs that are not corroborated by market data.

  In determining the appropriate levels, the Company performs a detailed analysis of the assets and liabilities that are subject to ASC 820. At each reporting period, all assets and liabilities for which the fair value measurement is based on significant unobservable inputs are classified as Level 3. There are no assets or liabilities measured at fair value as at December 31, 2015.
   
 

Fair Value of Financial Instruments

   
 

The fair value represents management’s best estimates based on a range of methodologies and assumptions. The carrying value of receivables and payables arising in the ordinary course of business and the investment tax credits receivable approximate fair value because of the relatively short period of time between their origination and expected realization.

 

Recent Accounting Pronouncements

   
 

ASU 2015-16, Business Combinations (Topic 805): Simplifying the Accounting for Measurement-Period Adjustments

   
 

The FASB issued this Update which requires that an acquirer recognize adjustments to provisional amounts that are identified during the measurement period in the reporting period in which the adjustment amounts are determined. The amendments in this Update require that the acquirer record, in the same period’s financial statements, the effect on earnings of changes in depreciation, amortization, or other income effects, if any, as a result of the change to the provisional amounts, calculated as if the accounting had been completed at the acquisition date. The amendments in this Update require an entity to present separately on the face of the income statement or disclose in the notes the portion of the amount recorded in current-period earnings by line item that would have been recorded in previous reporting periods if the adjustment to the provisional amounts had been recognized as of the acquisition date.

   
 

The amendments in this Update apply to all entities that have reported provisional amounts for items in a business combination for which the accounting is incomplete by the end of the reporting period in which the combination occurs and during the measurement period have an adjustment to provisional amounts recognized.

   
 

For public business entities, the amendments in this Update are effective for fiscal years beginning after December 15, 2015, including interim periods within those fiscal years. The amendments in this Update should be applied prospectively to adjustments to provisional amounts that occur after the effective date of this Update with earlier application permitted for financial statements that have not yet been issued.

   
 

For all other entities, the amendments in this Update are effective for fiscal years beginning after December 15, 2016, and interim periods within fiscal years beginning after December 15, 2017. The adoption of this Statement is not expected to have a material effect on the Company`s financial position or results of operations.

   
 

ASU 2015-14, Revenue From Contracts With Customers (Topic 606), Deferral of the Effective Date


 

The FASB and IASB (the Boards) have issued converged standards on revenue recognition. ASU No. 2014-09 affects any entity using U.S. GAAP that either enters into contracts with customers to transfer goods or services or enters into contracts for the transfer of nonfinancial assets unless those contracts are within the scope of other standards. This ASU will supersede the revenue recognition requirements in Topic 605, Revenue Recognition and most industry-specific guidance. The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. To achieve that core principle, an entity should apply the following steps:


 

Step 1: Identify the contract(s) with a customer.

 

Step 2: Identify the performance obligations in the contract.

 

Step 3: Determine the transaction price.

 

Step 4: Allocate the transaction price to the performance obligations in the contract.

 

Step 5: Recognize revenue when (or as) the entity satisfies a performance obligation.

Public business entities, certain not-for-profit entities, and certain employee benefit plans should apply the guidance in Update 2014-09 to annual reporting periods beginning after December 15, 2017, including interim reporting periods within that reporting period. Earlier application is permitted only as of annual reporting periods beginning after December 15, 2016, including interim reporting periods within that reporting period.

All other entities should apply the guidance in Update 2014-09 to annual reporting periods beginning after December 15, 2018, and interim reporting periods within annual reporting periods beginning after December 15, 2019. All other entities may apply the guidance in Update 2014-09 earlier as of an annual reporting period beginning after December 15, 2016, including interim reporting periods within that reporting period. All other entities also may apply the guidance in Update 2014-09 earlier as of an annual reporting period beginning after December 15, 2016, and interim reporting periods within annual reporting periods beginning one year after the annual reporting period in which the entity first applies the guidance in Update 2014-09.

This ASU is to be applied retrospectively, with certain practical expedients allowed. The Company is currently evaluating the impact of this Statement on its consolidated financial statements.

ASU 2015-11, Inventory (Topic 330): Simplifying the Measurement of Inventory

The amendments in this Update more closely align the measurement of inventory in GAAP with the measurement of inventory in International Financial Reporting Standards (IFRS). An entity should measure inventory within the scope of this Update at the lower of cost and net realizable value. Net realizable value is the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. Subsequent measurement is unchanged for inventory measured using LIFO or the retail inventory method.

The Board has amended some of the other guidance in Topic 330 to more clearly articulate the requirements for the measurement and disclosure of inventory. However, the Board does not intend for those clarifications to result in any changes in practice. Other than the change in the subsequent measurement guidance from the lower of cost or market to the lower of cost and net realizable value for inventory within the scope of this Update, there are no other substantive changes to the guidance on measurement of inventory.

 

The amendments in this Update do not apply to inventory that is measured using last-in, first-out (LIFO) or the retail inventory method. The amendments apply to all other inventory, which includes inventory that is measured using first-in, first-out (FIFO) or average cost.

   
 

For public business entities, the amendments in this Update are effective for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years. For all other entities, the amendments in this Update are effective for fiscal years beginning after December 15, 2016, and interim periods within fiscal years beginning after December 15, 2017. The amendments in this Update should be applied prospectively with earlier application permitted as of the beginning of an interim or annual reporting period. The adoption of this Statement is not expected to have a material effect on the Company`s financial position or results of operations.

   
 

ASU 2015-03, Interest - Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs

   
 

The amendments in ASU 2015-03 are intended to simplify the presentation of debt issuance costs. These amendments require that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. The recognition and measurement guidance for debt issuance costs are not affected by the amendments in this ASU.

   
 

The amendments are effective for public business entities for financial statements issued for fiscal years beginning after December 15, 2015, and interim periods within those fiscal years. Early adoption is permitted for financial statements that have not been previously issued. The adoption of this Statement is not expected to have a material effect on the Company`s financial position or results of operations.

   
 

ASU 2015-01, Income Statement - Extraordinary and Unusual Items (Subtopic 225-20): Simplifying Income Statement Presentation by Eliminating the Concept of Extraordinary Items

   
 

The amendments in ASU 2015-01 eliminate from U.S. GAAP the concept of extraordinary items. Subtopic 225-20, Income Statement - Extraordinary and Unusual Items, required that an entity separately classify, present, and disclose extraordinary events and transactions. The FASB heard from stakeholders that the concept of extraordinary items causes uncertainty because it is unclear when an item should be considered both unusual and infrequent. Additionally, some stakeholders said that although users find information about unusual or infrequent events and transactions useful, they do not find the extraordinary item classification and presentation necessary to identify those events and transactions. Other stakeholders noted that it is extremely rare in current practice for a transaction or event to meet the requirements to be presented as an extraordinary item. This ASU will also align more closely U.S. GAAP income statement presentation guidance with IAS 1, Presentation of Financial Statements, which prohibits the presentation and disclosure of extraordinary items. The amendments are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015. A reporting entity may apply the amendments prospectively. A reporting entity also may apply the amendments retrospectively to all prior periods presented in the financial statements. Early adoption is permitted provided that the guidance is applied from the beginning of the fiscal year of adoption. The adoption of this Statement is not expected to have a material effect on the Company’s financial position or results of operations.

 

ASU 2014-15, Presentation of Financial Statements —Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern

   
 

The FASB has issued ASU No. 2014-15 which is intended to define management’s responsibility to evaluate whether there is substantial doubt about an organization’s ability to continue as a going concern and to provide related footnote disclosures. This ASU provides guidance to an organization’s management, with principles and definitions that are intended to reduce diversity in the timing and content of disclosures that are commonly provided by organizations today in the financial statement footnotes. The amendments are effective for annual periods ending after December 15, 2016, and interim periods within annual periods beginning after December 15, 2016. Early application is permitted for annual or interim reporting periods for which the financial statements have not previously been issued. The Company is currently evaluating the impact of this Statement on its consolidated financial statements.

   
 

ASU 2014-12, Compensation – Stock Compensation (Topic 718): Accounting for shared-based payments when the terms of an award provide that a performance target could be achieved after the requisite service period.

   
 

The FASB has issued ASU No. 2014-12 which requires that a performance target that affects vesting and that could be achieved after the requisite service period be treated as a performance condition. A reporting entity should apply existing guidance in Topic 718, Compensation – Stock Compensation, as it relates to awards with performance conditions that affect vesting to account for such awards. The performance target should not be reflected in estimating the grant-date fair value of the award. Compensation cost should be recognized in the period in which it becomes probable that the performance target will be achieved. The amendments in this ASU are effective for annual periods and interim periods within those annual periods beginning after December 15, 2015. Earlier adoption is permitted. The adoption of this Statement is not expected to have a material effect on the Company’s financial position or results of operations.

   
 

ASU 2016-01 – Financial Instruments – Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities

   
 

In January 2016, the FASB issued ASU 2016-01, which will significantly change practice for all entities. The targeted amendments to existing guidance are expected to include:

     
  1.

Equity investments that do not result in consolidation and are not accounted for under the equity method would be measured at fair value through net income, unless they qualify for the proposed practicability exception for investments that do not have readily determinable fair values.

     
  2.

Changes in instrument-specific credit risk for financial liabilities that are measured under the fair value option would be recognized in other comprehensive income.

     
  3.

Entities would make the assessment of the realizability of a deferred tax asset (DTA) related to an available- for-sale (AFS) debt security in combination with the entity’s other DTAs. The guidance would eliminate one method that is currently acceptable for assessing the realizability of DTAs related to AFS debt securities. That is, an entity would no longer be able to consider its intent and ability to hold debt securities with unrealized losses until recovery.

     
  4.

Disclosure of the fair value of financial instruments measured at amortized cost would no longer be required for entities that not public business entities.

For public business entities, the amendments in this Update are effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. For all other entities, the amendments in this Update are effective for fiscal years beginning after December 15, 2018, and interim periods within fiscal years beginning after December 15, 2019.

Entities would be able to early adopt a provision that would allow them to recognize the fair value change from own credit in other comprehensive income for financial liabilities measured under the fair value option, and entities that are not public business entities would be able to adopt a provision to eliminate the fair value disclosures for financial instruments not recognized at fair value. Non-public business entities would be able to early adopt the guidance as of the effective date for public business entities. The Company is currently evaluating the impact of this Statement on its consolidated financial statements.

ASU 2015-17 – Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes (“ASU 2015-17”)

In November 2015, the FASB issued ASU 2015-17, which require that deferred tax liabilities and assets be classified as noncurrent in a classified statement of financial position.

The amendments apply to all entities that present a classified statement of financial position. The current requirement that deferred tax liabilities and assets of a tax-paying component of an entity be offset and presented as a single amount is not affected by the amendments.

For all other entities, the amendments are effective for financial statements issued for annual periods beginning after December 15, 2017, and interim periods within annual periods beginning after December 15, 2018.

The Company is currently evaluating the impact of its pending adoption of ASU 2015-17 on its financial statements.

Summary of Significant Accounting Policies (Tables)
Schedule of Estimated Useful Lives of Leasehold Improvements and Equipment [Table Text Block]
  On the declining balance method -  
     
         Laboratory and office equipment 20%
         Computer equipment 30%
     
  On the straight-line method -  
     
         Leasehold improvements over the lease term
         Manufacturing equipment 5 – 10 years
Leasehold Improvements and Equipment (Tables)
Schedule of Leasehold Improvements and Equipment [Table Text Block]
 

 

              2015     2014  
 

 

        Accumulated     Net Carrying     Net Carrying  
 

In U.S. $ thousands

  Cost     Depreciation     Amount     Amount  
 

 

                       
 

Manufacturing equipment

$ 1,050   $ 0   $ 1,050   $ 520  
 

Laboratory and office equipment

  1,193     372     821     241  
 

Computer equipment

  64     47     17     15  
 

Leasehold improvements

  2,427     77     2,350     207  
 

 

                       
 

 

$ 4,734   $ 496   $ 4,238   $ 983  
Long-term debt (Tables)
      December 31, 2015     December 31, 2014  
  In U.S.$ thousands   $    

$

 
               
               
  Term loan facility   1,188     -  
  Secured loan   542     -  
  Total debt   1,730     -  
               
  Less: current portion   184     -  
               
  Total long-term debt   1,546     -  
  In U.S.$ thousands    
  2016 $184  
  2017 344  
  2018 344  
  2019 344  
  2020 344  
  Thereafter 170  
Commitments (Tables)
Schedule of future minimum payments under operating leases [Table Text Block]
  In U.S.$ thousands    
  2016 $66  
  2017 81  
  2018 83  
  2019 84  
  2020 86  
  Thereafter 466  
Capital Stock (Tables)
Schedule of Stock by Class [Table Text Block]
      2015     2014  
  Authorized -            
  100,000,000 common shares of $0.00001 par value            
    20,000,000 preferred shares of $0.00001 par value            
  Issued -            
    63,615,255 (December 31, 2014: 63,465,255) common shares $ 636   $ 635  
Income Tax (Tables)
 

In U.S.$ thousands 

  2015     2014  
 

Statutory income taxes

$ 387   $ (429 )
 

Net operating losses for which no tax benefits have been recorded

  -     238  
 

Net operating losses used for which no tax benefit had been recorded

  (484 )   -  
 

Excess (deficiency) of depreciation over capital cost allowance

  (98 )   9  
 

Non-deductible expenses

  44     26  
 

Undeducted research and development expenses

  178     181  
 

Investment tax credit

  (27 )   (25 )
 

 

           
 

 

$ -   $   -  
 

In U.S.$ thousands 

  2015     2014  
 

Leasehold improvements and equipment

$ 117   $ 9  
 

Net operating losses carryforward

  1,770     2,582  
 

Undeducted research and development expenses

  1,274     1,355  
 

Non-refundable tax credits carryforward

  1,022     1,102  
 

 

           
 

 

  4,183     5,048  
 

Valuation allowance

  (4,183 )   (5,048 )
 

 

$ -   $   -  
Statement of Cash Flows Information (Tables)
Schedule of Cash Flow, Supplemental Disclosures [Table Text Block]
  In US$ thousands   2015     2014  
               
  Additional Cash Flow Information:            
  Interest paid $ 23   $ 5  
Nature of Business (Narrative) (Details)
12 Months Ended
Dec. 31, 2015
Nature Of Business 1
10 
Summary of Significant Accounting Policies (Narrative) (Details) (USD $)
12 Months Ended
Dec. 31, 2015
D
Summary Of Significant Accounting Policies 1
45 
Summary Of Significant Accounting Policies 2
$ 946,000 
Summary Of Significant Accounting Policies 3
463,000 
Summary Of Significant Accounting Policies 4
2,808,000 
Summary Of Significant Accounting Policies 5
Summary Of Significant Accounting Policies 6
Summary Of Significant Accounting Policies 7
552 
Summary Of Significant Accounting Policies 8
Summary Of Significant Accounting Policies 9
108,000 
Summary Of Significant Accounting Policies 10
$ 268,000 
Summary Of Significant Accounting Policies 11
50.00% 
Leasehold Improvements and Equipment (Narrative) (Details) (USD $)
12 Months Ended
Dec. 31, 2015
Leasehold Improvements And Equipment 1
$ 471 
Intangible Assets (Narrative) (Details)
12 Months Ended
Dec. 31, 2015
Intangible Assets 1
100.00% 
Deferred License Revenue (Narrative) (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2015
M
Deferred License Revenue 1
39 
Deferred License Revenue 2
$ 1.25 
Deferred License Revenue 3
$ 1.24 
Bank indebtedness (Narrative) (Details) (CAD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2015
Bank Indebtedness 1
$ 250 
Bank Indebtedness 2
$ 55 
Bank Indebtedness 3
2.00% 
Bank Indebtedness 4
50.00% 
Long-term debt (Narrative) (Details) (CAD $)
12 Months Ended
Dec. 31, 2015
M
Long-term Debt 1
$ 3,500,000 
Long-term Debt 2
1,600,000 
Long-term Debt 3
2.50% 
Long-term Debt 4
1,800,000 
Long-term Debt 5
1,800,000 
Long-term Debt 6
Long-term Debt 7
60 
Long-term Debt 8
1,000,000 
Long-term Debt 9
750,000 
Long-term Debt 10
7.30% 
Long-term Debt 11
$ 125,000 
Commitments (Narrative) (Details)
12 Months Ended
Dec. 31, 2015
USD ($)
Y
Dec. 31, 2015
CAD ($)
Commitments 1
17,000 
17,000 
Commitments 2
10 
10 
Commitments 3
Commitments 4
 
$ 110,000 
Commitments 5
80,000 
 
Commitments 6
 
0.25 
Commitments 7
0.18 
 
Commitments 8
866,000 
 
Commitments 9
200,000 
 
Commitments 10
10.00% 
10.00% 
Commitments 11
58,000 
 
Commitments 12
$ 433 
 
Capital Stock (Narrative) (Details) (USD $)
12 Months Ended
Dec. 31, 2015
Capital Stock 1
150,000 
Capital Stock 2
150,000 
Capital Stock 3
$ 0 
Capital Stock 4
62,000 
Capital Stock 5
62,000 
Capital Stock 6
130,000 
Capital Stock 7
101,000 
Capital Stock 8
158,000 
Capital Stock 9
74,000 
Capital Stock 10
2,480,988 
Capital Stock 11
2,480,988 
Capital Stock 12
Capital Stock 13
1,619,000 
Capital Stock 14
$ 1,619,000 
Income Tax (Narrative) (Details) (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2015
Income Tax 1
$ 6,462 
Income Tax 2
9,530 
Income Tax 3
6,725 
Income Tax 4
9,683 
Income Tax 5
1,022 
Income Tax 6
1,102 
Income Tax 7
Income Tax 8
Income Tax 9
163 
Income Tax 10
143 
Income Tax 11
122 
Income Tax 12
129 
Income Tax 13
162 
Income Tax 14
108 
Income Tax 15
82 
Income Tax 16
96 
Income Tax 17
6,315 
Income Tax 18
$ 4,805 
Related Party Transactions (Narrative) (Details) (USD $)
12 Months Ended
Dec. 31, 2015
Related Party Transactions 1
$ 3,000 
Related Party Transactions 2
29,000 
Related Party Transactions 3
9,000 
Related Party Transactions 4
Related Party Transactions 5
39,000 
Related Party Transactions 6
43,000 
Related Party Transactions 7
70,000 
Related Party Transactions 8
17,000 
Related Party Transactions 9
250,000 
Related Party Transactions 10
$ 187,000 
Schedule of Estimated Useful Lives of Leasehold Improvements and Equipment (Details)
12 Months Ended
Dec. 31, 2015
Y
Summary Of Significant Accounting Policies Schedule Of Leasehold Improvements And Equipment 1
20.00% 
Summary Of Significant Accounting Policies Schedule Of Leasehold Improvements And Equipment 2
30.00% 
Summary Of Significant Accounting Policies Schedule Of Leasehold Improvements And Equipment 3
Summary Of Significant Accounting Policies Schedule Of Leasehold Improvements And Equipment 4
10 
Schedule of Leasehold Improvements and Equipment (Details) (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2015
Leasehold Improvements And Equipment Schedule Of Leasehold Improvements And Equipment 1
$ 1,050 
Leasehold Improvements And Equipment Schedule Of Leasehold Improvements And Equipment 2
Leasehold Improvements And Equipment Schedule Of Leasehold Improvements And Equipment 3
1,050 
Leasehold Improvements And Equipment Schedule Of Leasehold Improvements And Equipment 4
520 
Leasehold Improvements And Equipment Schedule Of Leasehold Improvements And Equipment 5
1,193 
Leasehold Improvements And Equipment Schedule Of Leasehold Improvements And Equipment 6
372 
Leasehold Improvements And Equipment Schedule Of Leasehold Improvements And Equipment 7
821 
Leasehold Improvements And Equipment Schedule Of Leasehold Improvements And Equipment 8
241 
Leasehold Improvements And Equipment Schedule Of Leasehold Improvements And Equipment 9
64 
Leasehold Improvements And Equipment Schedule Of Leasehold Improvements And Equipment 10
47 
Leasehold Improvements And Equipment Schedule Of Leasehold Improvements And Equipment 11
17 
Leasehold Improvements And Equipment Schedule Of Leasehold Improvements And Equipment 12
15 
Leasehold Improvements And Equipment Schedule Of Leasehold Improvements And Equipment 13
2,427 
Leasehold Improvements And Equipment Schedule Of Leasehold Improvements And Equipment 14
77 
Leasehold Improvements And Equipment Schedule Of Leasehold Improvements And Equipment 15
2,350 
Leasehold Improvements And Equipment Schedule Of Leasehold Improvements And Equipment 16
207 
Leasehold Improvements And Equipment Schedule Of Leasehold Improvements And Equipment 17
4,734 
Leasehold Improvements And Equipment Schedule Of Leasehold Improvements And Equipment 18
496 
Leasehold Improvements And Equipment Schedule Of Leasehold Improvements And Equipment 19
4,238 
Leasehold Improvements And Equipment Schedule Of Leasehold Improvements And Equipment 20
$ 983 
Term loan (Details) (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2015
Long-term Debt Term Loan 1
$ 1,188 
Long-term Debt Term Loan 2
Long-term Debt Term Loan 3
542 
Long-term Debt Term Loan 4
Long-term Debt Term Loan 5
1,730 
Long-term Debt Term Loan 6
Long-term Debt Term Loan 7
184 
Long-term Debt Term Loan 8
Long-term Debt Term Loan 9
1,546 
Long-term Debt Term Loan 10
$ 0 
Term loan principal repayments (Details) (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2015
Long-term Debt Term Loan Principal Repayments 1
$ 184 
Long-term Debt Term Loan Principal Repayments 2
344 
Long-term Debt Term Loan Principal Repayments 3
344 
Long-term Debt Term Loan Principal Repayments 4
344 
Long-term Debt Term Loan Principal Repayments 5
344 
Long-term Debt Term Loan Principal Repayments 6
$ 170 
Schedule of future minimum payments under operating leases (Details) (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2015
Commitments Schedule Of Future Minimum Payments Under Operating Leases 1
$ 66 
Commitments Schedule Of Future Minimum Payments Under Operating Leases 2
81 
Commitments Schedule Of Future Minimum Payments Under Operating Leases 3
83 
Commitments Schedule Of Future Minimum Payments Under Operating Leases 4
84 
Commitments Schedule Of Future Minimum Payments Under Operating Leases 5
86 
Commitments Schedule Of Future Minimum Payments Under Operating Leases 6
$ 466 
Schedule of Stock by Class (Details) (USD $)
12 Months Ended
Dec. 31, 2015
Capital Stock Schedule Of Stock By Class 1
100,000,000 
Capital Stock Schedule Of Stock By Class 2
$ 0.00001 
Capital Stock Schedule Of Stock By Class 3
20,000,000 
Capital Stock Schedule Of Stock By Class 4
0.00001 
Capital Stock Schedule Of Stock By Class 5
63,615,255 
Capital Stock Schedule Of Stock By Class 6
63,465,255 
Capital Stock Schedule Of Stock By Class 7
636 
Capital Stock Schedule Of Stock By Class 8
$ 635 
Schedule of 175,000 Stock Options Valuation - December 8, 2014 (Details) (USD $)
12 Months Ended
Dec. 31, 2015
Y
Additional Paid-in Capital Schedule Of 175,000 Stock Options Valuation - December 8, 2014 1
63.00% 
Additional Paid-in Capital Schedule Of 175,000 Stock Options Valuation - December 8, 2014 2
3.13 
Additional Paid-in Capital Schedule Of 175,000 Stock Options Valuation - December 8, 2014 3
1.10% 
Additional Paid-in Capital Schedule Of 175,000 Stock Options Valuation - December 8, 2014 4
$ 0 
Schedule of 200,000 Stock Options Valuation - April 2, 2015 (Details) (USD $)
12 Months Ended
Dec. 31, 2015
Y
Additional Paid-in Capital Schedule Of 200,000 Stock Options Valuation - April 2, 2015 1
66.00% 
Additional Paid-in Capital Schedule Of 200,000 Stock Options Valuation - April 2, 2015 2
2.5 
Additional Paid-in Capital Schedule Of 200,000 Stock Options Valuation - April 2, 2015 3
0.87% 
Additional Paid-in Capital Schedule Of 200,000 Stock Options Valuation - April 2, 2015 4
$ 0 
Schedule of 100,000 Stock Options Valuation - April 2, 2015 (Details) (USD $)
12 Months Ended
Dec. 31, 2015
Y
Additional Paid-in Capital Schedule Of 100,000 Stock Options Valuation - April 2, 2015 1
62.00% 
Additional Paid-in Capital Schedule Of 100,000 Stock Options Valuation - April 2, 2015 2
3.13 
Additional Paid-in Capital Schedule Of 100,000 Stock Options Valuation - April 2, 2015 3
0.87% 
Additional Paid-in Capital Schedule Of 100,000 Stock Options Valuation - April 2, 2015 4
$ 0 
Schedule of 600,000 Stock Options Valuation - July 20, 2015 (Details) (USD $)
12 Months Ended
Dec. 31, 2015
Y
Additional Paid-in Capital Schedule Of 600,000 Stock Options Valuation - July 20, 2015 1
63.00% 
Additional Paid-in Capital Schedule Of 600,000 Stock Options Valuation - July 20, 2015 2
3.13 
Additional Paid-in Capital Schedule Of 600,000 Stock Options Valuation - July 20, 2015 3
1.09% 
Additional Paid-in Capital Schedule Of 600,000 Stock Options Valuation - July 20, 2015 4
$ 0 
Schedule of 75,000 Stock Options Valuation - August 13, 2015 (Details) (USD $)
12 Months Ended
Dec. 31, 2015
Y
Additional Paid-in Capital Schedule Of 75,000 Stock Options Valuation - August 13, 2015 1
62.00% 
Additional Paid-in Capital Schedule Of 75,000 Stock Options Valuation - August 13, 2015 2
3.13 
Additional Paid-in Capital Schedule Of 75,000 Stock Options Valuation - August 13, 2015 3
1.06% 
Additional Paid-in Capital Schedule Of 75,000 Stock Options Valuation - August 13, 2015 4
$ 0 
Schedule of 150,000 Stock Options Valuation - December 14, 2015 (Details) (USD $)
12 Months Ended
Dec. 31, 2015
Y
Additional Paid-in Capital Schedule Of 150,000 Stock Options Valuation - December 14, 2015 1
63.00% 
Additional Paid-in Capital Schedule Of 150,000 Stock Options Valuation - December 14, 2015 2
3.13 
Additional Paid-in Capital Schedule Of 150,000 Stock Options Valuation - December 14, 2015 3
1.25% 
Additional Paid-in Capital Schedule Of 150,000 Stock Options Valuation - December 14, 2015 4
$ 0 
Schedule of Stock Option Activity to Employees and Directors[Table Text Block] (Details) (USD $)
12 Months Ended
Dec. 31, 2015
Additional Paid-in Capital Schedule Of Stock Option Activity To Employees And Director 1
$ 1,597,500 
Additional Paid-in Capital Schedule Of Stock Option Activity To Employees And Director 2
0.58 
Additional Paid-in Capital Schedule Of Stock Option Activity To Employees And Director 3
175,000 
Additional Paid-in Capital Schedule Of Stock Option Activity To Employees And Director 4
0.53 
Additional Paid-in Capital Schedule Of Stock Option Activity To Employees And Director 5
(517,500)
Additional Paid-in Capital Schedule Of Stock Option Activity To Employees And Director 6
(0.64)
Additional Paid-in Capital Schedule Of Stock Option Activity To Employees And Director 7
(125,000)
Additional Paid-in Capital Schedule Of Stock Option Activity To Employees And Director 8
(0.61)
Additional Paid-in Capital Schedule Of Stock Option Activity To Employees And Director 9
Additional Paid-in Capital Schedule Of Stock Option Activity To Employees And Director 10
Additional Paid-in Capital Schedule Of Stock Option Activity To Employees And Director 11
1,130,000 
Additional Paid-in Capital Schedule Of Stock Option Activity To Employees And Director 12
0.54 
Additional Paid-in Capital Schedule Of Stock Option Activity To Employees And Director 13
1,125,000 
Additional Paid-in Capital Schedule Of Stock Option Activity To Employees And Director 14
0.58 
Additional Paid-in Capital Schedule Of Stock Option Activity To Employees And Director 15
(410,000)
Additional Paid-in Capital Schedule Of Stock Option Activity To Employees And Director 16
(0.59)
Additional Paid-in Capital Schedule Of Stock Option Activity To Employees And Director 17
(25,000)
Additional Paid-in Capital Schedule Of Stock Option Activity To Employees And Director 18
(0.45)
Additional Paid-in Capital Schedule Of Stock Option Activity To Employees And Director 19
(150,000)
Additional Paid-in Capital Schedule Of Stock Option Activity To Employees And Director 20
(0.41)
Additional Paid-in Capital Schedule Of Stock Option Activity To Employees And Director 21
$ 1,670,000 
Additional Paid-in Capital Schedule Of Stock Option Activity To Employees And Director 22
0.56 
Schedule of Stock Option Activity to Consultant's (Details) (USD $)
12 Months Ended
Dec. 31, 2015
Additional Paid-in Capital Schedule Of Stock Option Activity To Consultant's 1
$ 100,000 
Additional Paid-in Capital Schedule Of Stock Option Activity To Consultant's 2
0.59 
Additional Paid-in Capital Schedule Of Stock Option Activity To Consultant's 3
(100,000)
Additional Paid-in Capital Schedule Of Stock Option Activity To Consultant's 4
0.59 
Additional Paid-in Capital Schedule Of Stock Option Activity To Consultant's 5
Additional Paid-in Capital Schedule Of Stock Option Activity To Consultant's 6
$ 0 
Schedule of Share-based Compensation, Stock Options, and Warrants or Rights Activity (Details) (USD $)
12 Months Ended
Dec. 31, 2015
Additional Paid-in Capital Schedule Of Share-based Compensation, Stock Options, And Warrants Or Rights Activity 1
0.48 
Additional Paid-in Capital Schedule Of Share-based Compensation, Stock Options, And Warrants Or Rights Activity 2
$ 150,000 
Additional Paid-in Capital Schedule Of Share-based Compensation, Stock Options, And Warrants Or Rights Activity 3
0.45 
Additional Paid-in Capital Schedule Of Share-based Compensation, Stock Options, And Warrants Or Rights Activity 4
0.04 
Additional Paid-in Capital Schedule Of Share-based Compensation, Stock Options, And Warrants Or Rights Activity 5
Additional Paid-in Capital Schedule Of Share-based Compensation, Stock Options, And Warrants Or Rights Activity 6
Additional Paid-in Capital Schedule Of Share-based Compensation, Stock Options, And Warrants Or Rights Activity 7
0.51 
Additional Paid-in Capital Schedule Of Share-based Compensation, Stock Options, And Warrants Or Rights Activity 8
20,000 
Additional Paid-in Capital Schedule Of Share-based Compensation, Stock Options, And Warrants Or Rights Activity 9
0.02 
Additional Paid-in Capital Schedule Of Share-based Compensation, Stock Options, And Warrants Or Rights Activity 10
0.01 
Additional Paid-in Capital Schedule Of Share-based Compensation, Stock Options, And Warrants Or Rights Activity 11
20,000 
Additional Paid-in Capital Schedule Of Share-based Compensation, Stock Options, And Warrants Or Rights Activity 12
0.01 
Additional Paid-in Capital Schedule Of Share-based Compensation, Stock Options, And Warrants Or Rights Activity 13
0.52 
Additional Paid-in Capital Schedule Of Share-based Compensation, Stock Options, And Warrants Or Rights Activity 14
50,000 
Additional Paid-in Capital Schedule Of Share-based Compensation, Stock Options, And Warrants Or Rights Activity 15
0.01 
Additional Paid-in Capital Schedule Of Share-based Compensation, Stock Options, And Warrants Or Rights Activity 16
0.02 
Additional Paid-in Capital Schedule Of Share-based Compensation, Stock Options, And Warrants Or Rights Activity 17
50,000 
Additional Paid-in Capital Schedule Of Share-based Compensation, Stock Options, And Warrants Or Rights Activity 18
0.04 
Additional Paid-in Capital Schedule Of Share-based Compensation, Stock Options, And Warrants Or Rights Activity 19
0.52 
Additional Paid-in Capital Schedule Of Share-based Compensation, Stock Options, And Warrants Or Rights Activity 20
150,000 
Additional Paid-in Capital Schedule Of Share-based Compensation, Stock Options, And Warrants Or Rights Activity 21
0.27 
Additional Paid-in Capital Schedule Of Share-based Compensation, Stock Options, And Warrants Or Rights Activity 22
0.05 
Additional Paid-in Capital Schedule Of Share-based Compensation, Stock Options, And Warrants Or Rights Activity 23
150,000 
Additional Paid-in Capital Schedule Of Share-based Compensation, Stock Options, And Warrants Or Rights Activity 24
0.11 
Additional Paid-in Capital Schedule Of Share-based Compensation, Stock Options, And Warrants Or Rights Activity 25
0.53 
Additional Paid-in Capital Schedule Of Share-based Compensation, Stock Options, And Warrants Or Rights Activity 26
150,000 
Additional Paid-in Capital Schedule Of Share-based Compensation, Stock Options, And Warrants Or Rights Activity 27
0.36 
Additional Paid-in Capital Schedule Of Share-based Compensation, Stock Options, And Warrants Or Rights Activity 28
0.05 
Additional Paid-in Capital Schedule Of Share-based Compensation, Stock Options, And Warrants Or Rights Activity 29
75,000 
Additional Paid-in Capital Schedule Of Share-based Compensation, Stock Options, And Warrants Or Rights Activity 30
0.06 
Additional Paid-in Capital Schedule Of Share-based Compensation, Stock Options, And Warrants Or Rights Activity 31
0.54 
Additional Paid-in Capital Schedule Of Share-based Compensation, Stock Options, And Warrants Or Rights Activity 32
110,000 
Additional Paid-in Capital Schedule Of Share-based Compensation, Stock Options, And Warrants Or Rights Activity 33
0.06 
Additional Paid-in Capital Schedule Of Share-based Compensation, Stock Options, And Warrants Or Rights Activity 34
0.04 
Additional Paid-in Capital Schedule Of Share-based Compensation, Stock Options, And Warrants Or Rights Activity 35
110,000 
Additional Paid-in Capital Schedule Of Share-based Compensation, Stock Options, And Warrants Or Rights Activity 36
0.09 
Additional Paid-in Capital Schedule Of Share-based Compensation, Stock Options, And Warrants Or Rights Activity 37
0.58 
Additional Paid-in Capital Schedule Of Share-based Compensation, Stock Options, And Warrants Or Rights Activity 38
35,000 
Additional Paid-in Capital Schedule Of Share-based Compensation, Stock Options, And Warrants Or Rights Activity 39
0.06 
Additional Paid-in Capital Schedule Of Share-based Compensation, Stock Options, And Warrants Or Rights Activity 40
0.01 
Additional Paid-in Capital Schedule Of Share-based Compensation, Stock Options, And Warrants Or Rights Activity 41
35,000 
Additional Paid-in Capital Schedule Of Share-based Compensation, Stock Options, And Warrants Or Rights Activity 42
0.03 
Additional Paid-in Capital Schedule Of Share-based Compensation, Stock Options, And Warrants Or Rights Activity 43
0.58 
Additional Paid-in Capital Schedule Of Share-based Compensation, Stock Options, And Warrants Or Rights Activity 44
600,000 
Additional Paid-in Capital Schedule Of Share-based Compensation, Stock Options, And Warrants Or Rights Activity 45
1.65 
Additional Paid-in Capital Schedule Of Share-based Compensation, Stock Options, And Warrants Or Rights Activity 46
0.21 
Additional Paid-in Capital Schedule Of Share-based Compensation, Stock Options, And Warrants Or Rights Activity 47
Additional Paid-in Capital Schedule Of Share-based Compensation, Stock Options, And Warrants Or Rights Activity 48
Additional Paid-in Capital Schedule Of Share-based Compensation, Stock Options, And Warrants Or Rights Activity 49
0.58 
Additional Paid-in Capital Schedule Of Share-based Compensation, Stock Options, And Warrants Or Rights Activity 50
75,000 
Additional Paid-in Capital Schedule Of Share-based Compensation, Stock Options, And Warrants Or Rights Activity 51
0.21 
Additional Paid-in Capital Schedule Of Share-based Compensation, Stock Options, And Warrants Or Rights Activity 52
0.03 
Additional Paid-in Capital Schedule Of Share-based Compensation, Stock Options, And Warrants Or Rights Activity 53
Additional Paid-in Capital Schedule Of Share-based Compensation, Stock Options, And Warrants Or Rights Activity 54
Additional Paid-in Capital Schedule Of Share-based Compensation, Stock Options, And Warrants Or Rights Activity 55
0.60 
Additional Paid-in Capital Schedule Of Share-based Compensation, Stock Options, And Warrants Or Rights Activity 56
30,000 
Additional Paid-in Capital Schedule Of Share-based Compensation, Stock Options, And Warrants Or Rights Activity 57
0.04 
Additional Paid-in Capital Schedule Of Share-based Compensation, Stock Options, And Warrants Or Rights Activity 58
0.01 
Additional Paid-in Capital Schedule Of Share-based Compensation, Stock Options, And Warrants Or Rights Activity 59
30,000 
Additional Paid-in Capital Schedule Of Share-based Compensation, Stock Options, And Warrants Or Rights Activity 60
0.03 
Additional Paid-in Capital Schedule Of Share-based Compensation, Stock Options, And Warrants Or Rights Activity 61
0.62 
Additional Paid-in Capital Schedule Of Share-based Compensation, Stock Options, And Warrants Or Rights Activity 62
300,000 
Additional Paid-in Capital Schedule Of Share-based Compensation, Stock Options, And Warrants Or Rights Activity 63
0.76 
Additional Paid-in Capital Schedule Of Share-based Compensation, Stock Options, And Warrants Or Rights Activity 64
0.11 
Additional Paid-in Capital Schedule Of Share-based Compensation, Stock Options, And Warrants Or Rights Activity 65
225,000 
Additional Paid-in Capital Schedule Of Share-based Compensation, Stock Options, And Warrants Or Rights Activity 66
0.20 
Additional Paid-in Capital Schedule Of Share-based Compensation, Stock Options, And Warrants Or Rights Activity 67
1,670,000 
Additional Paid-in Capital Schedule Of Share-based Compensation, Stock Options, And Warrants Or Rights Activity 68
3.88 
Additional Paid-in Capital Schedule Of Share-based Compensation, Stock Options, And Warrants Or Rights Activity 69
0.56 
Additional Paid-in Capital Schedule Of Share-based Compensation, Stock Options, And Warrants Or Rights Activity 70
6,200 
Additional Paid-in Capital Schedule Of Share-based Compensation, Stock Options, And Warrants Or Rights Activity 71
695,000 
Additional Paid-in Capital Schedule Of Share-based Compensation, Stock Options, And Warrants Or Rights Activity 72
0.56 
Additional Paid-in Capital Schedule Of Share-based Compensation, Stock Options, And Warrants Or Rights Activity 73
$ 200 
Schedule of Stockholders' Equity Note, Warrants or Rights, Activity (Details) (USD $)
12 Months Ended
Dec. 31, 2015
Additional Paid-in Capital Schedule Of Stockholders' Equity Note, Warrants Or Rights, Activity 1
$ 11,143,732 
Additional Paid-in Capital Schedule Of Stockholders' Equity Note, Warrants Or Rights, Activity 2
0.6079 
Additional Paid-in Capital Schedule Of Stockholders' Equity Note, Warrants Or Rights, Activity 3
(2,480,988)
Additional Paid-in Capital Schedule Of Stockholders' Equity Note, Warrants Or Rights, Activity 4
(0.6524)
Additional Paid-in Capital Schedule Of Stockholders' Equity Note, Warrants Or Rights, Activity 5
(1,431,621)
Additional Paid-in Capital Schedule Of Stockholders' Equity Note, Warrants Or Rights, Activity 6
(0.7400)
Additional Paid-in Capital Schedule Of Stockholders' Equity Note, Warrants Or Rights, Activity 7
7,231,123 
Additional Paid-in Capital Schedule Of Stockholders' Equity Note, Warrants Or Rights, Activity 8
0.5646 
Additional Paid-in Capital Schedule Of Stockholders' Equity Note, Warrants Or Rights, Activity 9
Additional Paid-in Capital Schedule Of Stockholders' Equity Note, Warrants Or Rights, Activity 10
Additional Paid-in Capital Schedule Of Stockholders' Equity Note, Warrants Or Rights, Activity 11
Additional Paid-in Capital Schedule Of Stockholders' Equity Note, Warrants Or Rights, Activity 12
Additional Paid-in Capital Schedule Of Stockholders' Equity Note, Warrants Or Rights, Activity 13
$ 7,231,123 
Additional Paid-in Capital Schedule Of Stockholders' Equity Note, Warrants Or Rights, Activity 14
0.5646 
Schedule of Effective Income Tax Rate Reconciliation (Details) (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2015
Income Tax Schedule Of Effective Income Tax Rate Reconciliation 1
$ 387 
Income Tax Schedule Of Effective Income Tax Rate Reconciliation 2
(429)
Income Tax Schedule Of Effective Income Tax Rate Reconciliation 3
Income Tax Schedule Of Effective Income Tax Rate Reconciliation 4
238 
Income Tax Schedule Of Effective Income Tax Rate Reconciliation 5
(484)
Income Tax Schedule Of Effective Income Tax Rate Reconciliation 6
Income Tax Schedule Of Effective Income Tax Rate Reconciliation 7
(98)
Income Tax Schedule Of Effective Income Tax Rate Reconciliation 8
Income Tax Schedule Of Effective Income Tax Rate Reconciliation 9
44 
Income Tax Schedule Of Effective Income Tax Rate Reconciliation 10
26 
Income Tax Schedule Of Effective Income Tax Rate Reconciliation 11
178 
Income Tax Schedule Of Effective Income Tax Rate Reconciliation 12
181 
Income Tax Schedule Of Effective Income Tax Rate Reconciliation 13
(27)
Income Tax Schedule Of Effective Income Tax Rate Reconciliation 14
(25)
Income Tax Schedule Of Effective Income Tax Rate Reconciliation 15
Income Tax Schedule Of Effective Income Tax Rate Reconciliation 16
$ 0 
Schedule of Deferred Tax Assets and Liabilities (Details) (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2015
Income Tax Schedule Of Deferred Tax Assets And Liabilities 1
$ 117 
Income Tax Schedule Of Deferred Tax Assets And Liabilities 2
Income Tax Schedule Of Deferred Tax Assets And Liabilities 3
1,770 
Income Tax Schedule Of Deferred Tax Assets And Liabilities 4
2,582 
Income Tax Schedule Of Deferred Tax Assets And Liabilities 5
1,274 
Income Tax Schedule Of Deferred Tax Assets And Liabilities 6
1,355 
Income Tax Schedule Of Deferred Tax Assets And Liabilities 7
1,022 
Income Tax Schedule Of Deferred Tax Assets And Liabilities 8
1,102 
Income Tax Schedule Of Deferred Tax Assets And Liabilities 9
4,183 
Income Tax Schedule Of Deferred Tax Assets And Liabilities 10
5,048 
Income Tax Schedule Of Deferred Tax Assets And Liabilities 11
(4,183)
Income Tax Schedule Of Deferred Tax Assets And Liabilities 12
(5,048)
Income Tax Schedule Of Deferred Tax Assets And Liabilities 13
Income Tax Schedule Of Deferred Tax Assets And Liabilities 14
$ 0 
Schedule of Cash Flow, Supplemental Disclosures (Details) (USD $)
12 Months Ended
Dec. 31, 2015
Statement Of Cash Flows Information Schedule Of Cash Flow, Supplemental Disclosures 1
$ 23 
Statement Of Cash Flows Information Schedule Of Cash Flow, Supplemental Disclosures 2
$ 5