INTELGENX TECHNOLOGIES CORP., 10-Q filed on 5/14/2015
Quarterly Report
Document and Entity Information
3 Months Ended
Mar. 31, 2015
May 13, 2015
Document Type
10-Q 
 
Amendment Flag
false 
 
Document Period End Date
Mar. 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
 
63,465,256 
Entity Current Reporting Status
Yes 
 
Entity Voluntary Filers
No 
 
Entity Well Known Seasoned Issuer
No 
 
Document Fiscal Year Focus
2015 
 
Document Fiscal Period Focus
Q1 
 
Consolidated Balance Sheet (USD $)
In Thousands, unless otherwise specified
Mar. 31, 2015
Dec. 31, 2014
Current
 
 
Cash and cash equivalents
$ 3,819 
$ 4,399 
Accounts receivable
76 
652 
Prepaid expenses
72 
96 
Investment tax credits receivable
122 
108 
Total Current Assets
4,089 
5,255 
Leasehold Improvements and Equipment, net
1,361 
983 
Intangible Assets
25 
46 
Security Deposit
237 
Total Assets
5,712 
6,284 
Current
 
 
Accounts payable and accrued liabilities
245 
466 
Current portion of term loan
39 
Deferred license revenue
856 
1,245 
Total Current Liabilities
1,140 
1,711 
Term Loan
356 
Total Liabilities
1,496 
1,711 
Shareholders' Equity
 
 
Capital Stock
Additional Paid-in-Capital
22,674 
22,654 
Accumulated Deficit
(17,902)
(17,848)
Accumulated Other Comprehensive Loss
(557)
(234)
Total Shareholders' Equity
4,216 
4,573 
Total Liabilities and Stockholders' Equity
$ 5,712 
$ 6,284 
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 Income [Member]
Total
Beginning Balance at Dec. 31, 2014
$ 1 
$ 22,654 
$ (17,848)
$ (234)
$ 4,573 
Beginning Balance (Shares) at Dec. 31, 2014
63,465,255 
 
 
 
 
Foreign currency translation adjustment
 
 
 
(323)
(323)
Stock-based compensation
 
20 
 
 
20 
Net loss for the period
 
 
(54)
 
(54)
Ending Balance at Mar. 31, 2015
$ 1 
$ 22,674 
$ (17,902)
$ (557)
$ 4,216 
Ending Balance (Shares) at Mar. 31, 2015
63,465,255 
 
 
 
 
Consolidated Statement of Comprehensive Loss (USD $)
In Thousands, except Share data, unless otherwise specified
3 Months Ended
Mar. 31, 2015
Mar. 31, 2014
Revenues
 
 
Royalties
$ 234 
$ 97 
License and other revenue
391 
125 
Total Revenues
625 
222 
Expenses
 
 
Cost of royalty and license revenue
84 
Research and development expense
117 
188 
Selling, general and administrative expense
393 
460 
Depreciation of tangible assets
Amortization of intangible assets
Total Expenses
610 
664 
Operating income (loss)
15 
(442)
Interest income
10 
Financing and Interest expense
(79)
Net Loss
(54)
(442)
Other Comprehensive Loss
 
 
Foreign currency translation adjustment
(323)
(231)
Comprehensive Loss
$ (377)
$ (673)
Basic and Diluted Weighted Average Number of Shares Outstanding
63,465,255 
62,064,139 
Basic and Diluted Loss Per Common Share
$ 0.00 
$ (0.01)
Consolidated Statement of Cash Flows (USD $)
In Thousands, unless otherwise specified
3 Months Ended
Mar. 31, 2015
Mar. 31, 2014
Funds Provided - Operating Activities
 
 
Net loss
$ (54)
$ (442)
Amortization and depreciation
16 
16 
Stock-based compensation
20 
32 
Total adjustments
(18)
(394)
Changes in assets and liabilities:
 
 
Accounts receivable
576 
118 
Prepaid expenses
24 
41 
Investment tax credits receivable
(14)
(17)
Security deposit
(237)
Accounts payable and accrued liabilities
(221)
(309)
Deferred revenue
(389)
(27)
Net change in assets and liabilities
(261)
(194)
Net cash used by operating activities
(279)
(588)
Financing Activities
 
 
Proceeds from exercise of warrants
1,064 
Net cash provided by financing activities
395 
1,064 
Issuance of term loans
395 
Investing Activities
 
 
Additions to property and equipment
(384)
(105)
Net cash used in investing activities
(384)
(105)
Increase (Decrease) in Cash and Cash Equivalents
(268)
371 
Effect of Foreign Exchange on Cash and Cash Equivalents
(312)
(210)
Cash and Cash Equivalents
 
 
Beginning of Period
4,399 
5,005 
End of Period
$ 3,819 
$ 5,166 
Basis of Presentation
Basis of Presentation [Text Block]
1. Basis of Presentation
   
 

The accompanying unaudited consolidated financial statements have been prepared in accordance with generally accepted accounting principles for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete consolidated financial statements. In the opinion of management, all adjustments considered necessary for a fair presentation have been included. All such adjustments are of a normal and recurring nature.

 

 

 

These financial statements should be read in conjunction with the audited consolidated financial statements at December 31, 2014. Operating results for the three months ended March 31, 2015 are not necessarily indicative of the results that may be expected for the year ending December 31, 2015. The Company prepares its financial statements in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”). 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.

 

 

 

Management has performed an evaluation of the Company’s activities through the date and time these financial statements were issued and concluded that there are no additional significant events requiring recognition or disclosure.

Adoption of New Accounting Standards
Adoption of New Accounting Standards [Text Block]
2.

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.

Significant Accounting Policies
Significant Accounting Policies [Text Block]
3.

Significant Accounting Policies

   
 

Recently Issued Accounting Pronouncements

   
 

ASU 2015-02, Consolidation (Topic 810): Amendments to the Consolidation Analysis

   
 

The amendments in ASU 2015-02 are intended to improve targeted areas of consolidation guidance for legal entities such as limited partnerships, limited liability corporations, and securitization structures. The new standard reduces the number of consolidation models and improves current GAAP by:

   
 

-Placing more emphasis on risk of loss when determining a controlling financial interest.

   
 

-Reducing the frequency of the application of related-party guidance when determining a controlling financial interest in a variable interest entity (VIE).

   
 

-Changing consolidation conclusions for public and private companies in several industries that typically make use of limited partnerships or VIEs.

   
 

The amendments are effective for public business entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015. Early adoption is permitted, including adoption in an interim period. ASU 2015-02 may be applied retrospectively in previously issued financial statements. 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 2014-13, Consolidation (Topic 810): Measuring the Financial Assets and the Financial Liabilities of a Consolidated Collateralized Financing Entity

 

 

 

The FASB has issued ASU No. 2014-13 which will apply to a reporting entity that is required to consolidate a collateralized financing entity under the Variable Interest Entities guidance. The fair value of the financial assets of a collateralized financing entity, as determined under GAAP, may differ from the fair value of its financial liabilities even when the financial liabilities have recourse only to the financial assets. Before this ASU, there was no specific guidance in GAAP on how a reporting entity should account for that difference. The amendments in this ASU provide an alternative to Topic 820, Fair Value Measurement, for measuring the financial assets and the financial liabilities of a consolidated collateralized financing entity to eliminate that difference. The amendments in this ASU are effective for public business entities for annual periods, and interim periods within those annual periods, beginning after December 15, 2015. Early adoption is permitted as of the beginning of an annual 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 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 No. 2014-09, Revenues from Contracts with Customers (Topic 606)

 

 

 

 

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.

 

 

 

 

For a public entity, the amendments in this ASU are effective for annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period. This ASU is to be applied retrospectively, with certain practical expedients allowed. Early application is not permitted. The Company is currently evaluating the impact of this Statement on its consolidated financial statements.

Intangible Assets
Intangible Assets [Text Block]
4.

Intangible Assets

 

 

 

 

As of March 31, 2015 NDA acquisition costs of $25 thousand (December 31, 2014 - $46 thousand) were recorded as intangible assets on the Company’s balance sheet and represent the net book value of the final progress payment related to the acquisition of 100% ownership of Forfivo XL®. The asset is being amortized over its estimated useful life of 39 months. The Company commenced amortization upon commercial launch of the product in October 2012.

Bank indebtedness
Bank indebtedness [Text Block]
5.

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 7) 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 March 31, 2015, the Company has not drawn on its credit facility.

Deferred License Revenue
Deferred License Revenue [Text Block]
6.

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 is being amortized in income over a period of 39 months, which is 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, to be amortized in income from October 2014 through September 2015.

   
 

As a result of this policy, IntelGenx has a deferred revenue balance of $856 thousand at March 31, 2015 (December 31, 2014 - $1,245 thousand) that has not been recognized as revenue.

Term loan
Term loan [Text Block]
7.

Term loan

   
 

The Company’s term loan facility consists of CAD$500 thousand bearing interest at the Bank’s prime lending rate plus 2.50%, and CAD$3 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 5).

   
 

The CAD$3 million tranche of the term loan will be disbursed subsequent to meeting certain conditions based upon the Company’s operating cash flow throughout the first six months of 2015 being positive. 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.


      March 31, 2015     March 31, 2014  
      $     $  
  Term loan   395     0  
  Current portion   39     0  
      356     0  
   
 

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


  2015 $ 20  
  2016   79  
  2017   79  
  2018   79  
  2019   79  
  Thereafter   59  
Capital Stock
Capital Stock [Text Block]
8.

Capital Stock


      March 31,     December 31,  
      2015     2014  
  Authorized -            
  100,000,000 common shares of $0.00001 par value            
  20,000,000 preferred shares of $0.00001 par value            
  Issued -            
  63,465,255 (December 31, 2014 - 63,465,255) common shares $ 635   $ 635  
Related Party Transactions
Related Party Transactions [Text Block]
10.

Related Party Transactions

   
 

Included in management salaries are $1 thousand (2014 - $15 thousand) for options granted to the Chief Executive Officer and $11 thousand (2014 - $11 thousand) for options granted to the Chief Financial Officer under the 2006 Stock Option Plan and $3 thousand (2014 - $3 thousand) for options granted to non-employee directors.

   
 

Also included in management salaries are director fees of $40 thousand (2014 - $22 thousand).

   
 

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

Basic and Diluted Loss Per Common Share
Basic and Diluted Loss Per Common Share [Text Block]
11.

Basic and Diluted Loss Per Common Share

   
 

Basic and diluted loss per common share is calculated based on the weighted average number of shares outstanding during the period. The warrants, share-based compensation and convertible notes have been excluded from the calculation of diluted loss per share since they are anti-dilutive.

Subsequent Events
Subsequent Events [Text Block]
12.

Subsequent Events

   
 

Subsequent to the end of the quarter, on April 24, 2015 IntelGenx executed an agreement to lease approximately 17,000 square feet in a property located at 6420 Abrams, St-Laurent, Quebec (the “Lease”). The Lease has a 10 year and 6 month term commencing on September 1, 2015 and 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 will be required to pay base rent of approximately CAD$110 thousand (approximately $87 thousand) per year, which will increase at a rate of CAD$0.25 ($0.20) per square foot every two years. IntelGenx plans to use the newly leased space to manufacture its oral film VersaFilm™ products, to enlarge its research and development capabilities, and for administration purposes.

   
 

On April 28, 2015 IntelGenx executed an agreement for the construction of manufacturing facilities, laboratories, and offices within the property located at 6420 Abrams, St-Laurent, Quebec, at an aggregate cost of CAD$2.9 million (approximately $2.3 million). IntelGenx plans to fund this project from cash on hand. Construction is anticipated to be completed in Q3, 2015.

Summary of Significant Accounting Policies (Policies)
 

ASU 2015-02, Consolidation (Topic 810): Amendments to the Consolidation Analysis

   
 

The amendments in ASU 2015-02 are intended to improve targeted areas of consolidation guidance for legal entities such as limited partnerships, limited liability corporations, and securitization structures. The new standard reduces the number of consolidation models and improves current GAAP by:

   
 

-Placing more emphasis on risk of loss when determining a controlling financial interest.

   
 

-Reducing the frequency of the application of related-party guidance when determining a controlling financial interest in a variable interest entity (VIE).

   
 

-Changing consolidation conclusions for public and private companies in several industries that typically make use of limited partnerships or VIEs.

   
 

The amendments are effective for public business entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015. Early adoption is permitted, including adoption in an interim period. ASU 2015-02 may be applied retrospectively in previously issued financial statements. 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 2014-13, Consolidation (Topic 810): Measuring the Financial Assets and the Financial Liabilities of a Consolidated Collateralized Financing Entity

 

 

 

The FASB has issued ASU No. 2014-13 which will apply to a reporting entity that is required to consolidate a collateralized financing entity under the Variable Interest Entities guidance. The fair value of the financial assets of a collateralized financing entity, as determined under GAAP, may differ from the fair value of its financial liabilities even when the financial liabilities have recourse only to the financial assets. Before this ASU, there was no specific guidance in GAAP on how a reporting entity should account for that difference. The amendments in this ASU provide an alternative to Topic 820, Fair Value Measurement, for measuring the financial assets and the financial liabilities of a consolidated collateralized financing entity to eliminate that difference. The amendments in this ASU are effective for public business entities for annual periods, and interim periods within those annual periods, beginning after December 15, 2015. Early adoption is permitted as of the beginning of an annual 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 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 No. 2014-09, Revenues from Contracts with Customers (Topic 606)

 

 

 

 

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.

 

 

 

 

For a public entity, the amendments in this ASU are effective for annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period. This ASU is to be applied retrospectively, with certain practical expedients allowed. Early application is not permitted. The Company is currently evaluating the impact of this Statement on its consolidated financial statements.

Term loan (Tables)
      March 31, 2015     March 31, 2014  
      $     $  
  Term loan   395     0  
  Current portion   39     0  
      356     0  
  2015 $ 20  
  2016   79  
  2017   79  
  2018   79  
  2019   79  
  Thereafter   59  
Capital Stock (Tables)
Schedule of Stock by Class [Table Text Block]
      March 31,     December 31,  
      2015     2014  
  Authorized -            
  100,000,000 common shares of $0.00001 par value            
  20,000,000 preferred shares of $0.00001 par value            
  Issued -            
  63,465,255 (December 31, 2014 - 63,465,255) common shares $ 635   $ 635  
Intangible Assets (Narrative) (Details) (USD $)
In Thousands, unless otherwise specified
3 Months Ended
Mar. 31, 2015
M
Intangible Assets 1
$ 25 
Intangible Assets 2
$ 46 
Intangible Assets 3
100.00% 
Intangible Assets 4
39 
Bank indebtedness (Narrative) (Details) (CAD $)
In Thousands, unless otherwise specified
3 Months Ended
Mar. 31, 2015
Bank Indebtedness 1
$ 250 
Bank Indebtedness 2
$ 55 
Bank Indebtedness 3
2.00% 
Bank Indebtedness 4
50.00% 
Deferred License Revenue (Narrative) (Details) (USD $)
3 Months Ended
Mar. 31, 2015
M
Deferred License Revenue 1
39 
Deferred License Revenue 2
$ 1,250,000 
Deferred License Revenue 3
856,000 
Deferred License Revenue 4
$ 1,245,000 
Term loan (Narrative) (Details) (CAD $)
3 Months Ended
Mar. 31, 2015
M
Term Loan 1
$ 500,000 
Term Loan 2
2.50% 
Term Loan 3
3,000,000 
Term Loan 4
$ 3,000,000 
Term Loan 5
Term Loan 6
60 
Related Party Transactions (Narrative) (Details) (USD $)
In Thousands, unless otherwise specified
3 Months Ended
Mar. 31, 2015
Related Party Transactions 1
$ 1 
Related Party Transactions 2
15 
Related Party Transactions 3
11 
Related Party Transactions 4
11 
Related Party Transactions 5
Related Party Transactions 6
Related Party Transactions 7
40 
Related Party Transactions 8
$ 22 
Subsequent Events (Narrative) (Details)
3 Months Ended
Mar. 31, 2015
USD ($)
M
Y
Mar. 31, 2015
CAD ($)
Subsequent Events 1
17,000 
17,000 
Subsequent Events 2
10 
10 
Subsequent Events 3
Subsequent Events 4
 
$ 110,000 
Subsequent Events 5
87,000 
 
Subsequent Events 6
 
0.25 
Subsequent Events 7
0.20 
 
Subsequent Events 8
 
2,900,000 
Subsequent Events 9
$ 2,300,000 
 
Term loan (Details) (USD $)
In Thousands, unless otherwise specified
3 Months Ended
Mar. 31, 2015
Term Loan Term Loan 1
$ 395 
Term Loan Term Loan 2
Term Loan Term Loan 3
39 
Term Loan Term Loan 4
Term Loan Term Loan 5
356 
Term Loan Term Loan 6
$ 0 
Term loan principal repayments (Details) (USD $)
In Thousands, unless otherwise specified
3 Months Ended
Mar. 31, 2015
Term Loan Term Loan Principal Repayments 1
$ 20 
Term Loan Term Loan Principal Repayments 2
79 
Term Loan Term Loan Principal Repayments 3
79 
Term Loan Term Loan Principal Repayments 4
79 
Term Loan Term Loan Principal Repayments 5
79 
Term Loan Term Loan Principal Repayments 6
$ 59 
Schedule of Stock by Class (Details) (USD $)
3 Months Ended
Mar. 31, 2015
Capital Stock Schedule Of Stock By Class 2
100,000,000 
Capital Stock Schedule Of Stock By Class 3
$ 0.00001 
Capital Stock Schedule Of Stock By Class 4
20,000,000 
Capital Stock Schedule Of Stock By Class 5
0.00001 
Capital Stock Schedule Of Stock By Class 7
63,465,255 
Capital Stock Schedule Of Stock By Class 8
63,465,255 
Capital Stock Schedule Of Stock By Class 9
635,000 
Capital Stock Schedule Of Stock By Class 10
$ 635,000