INTELGENX TECHNOLOGIES CORP., 10-Q filed on 8/8/2019
Quarterly Report
v3.19.2
Document and Entity Information - shares
6 Months Ended
Jun. 30, 2019
Aug. 08, 2019
Document Type 10-Q  
Amendment Flag false  
Document Period End Date Jun. 30, 2019  
Entity Registrant Name IntelGenx Technologies Corp.  
Entity Central Index Key 0001098880  
Current Fiscal Year End Date --12-31  
Entity Filer Category Non-accelerated Filer  
Entity Common Stock, Shares Outstanding   93,527,474
Document Fiscal Year Focus 2019  
Document Fiscal Period Focus Q2  
Entity Small Business true  
Entity Emerging Growth Company false  
Entity Ex Transition Period false  
v3.19.2
Consolidated Balance Sheets - USD ($)
$ in Thousands
Jun. 30, 2019
Dec. 31, 2018
Current    
Cash $ 5,581 $ 6,815
Short-term investments 562 4,180
Accounts receivable 466 815
Prepaid expenses 358 462
Investment tax credits receivable 625 416
Inventory 391 375
Total current assets 7,983 13,063
Leasehold improvements and equipment, net 6,374 6,248
Security deposits 737 707
Operating lease right-of-use asset 717  
Total assets 15,811 20,018
Current    
Accounts payable and accrued liabilities 1,520 2,030
Current portion of long-term debt 740 692
Current portion of operating lease liability 135  
Total current liabilities 2,395 2,722
Deferred lease obligations   49
Long-term debt 827 1,140
Convertible debentures 5,424 5,047
Convertible notes 1,159 1,073
Operating lease liability 588  
Total liabilities 10,393 10,031
Shareholders' equity    
Capital stock, common shares, $0.00001 par value; 200,000,000 shares authorized; 93,527,473 shares issued and outstanding (2018: 93,477,473 common shares) 1 1
Additional paid-in capital 42,250 42,048
Accumulated deficit (36,039) (30,896)
Accumulated other comprehensive loss (794) (1,166)
Total shareholders' equity 5,418 9,987
Total liabilities and shareholders' equity $ 15,811 $ 20,018
v3.19.2
Consolidated Balance Sheets (Parenthetical) - $ / shares
Jun. 30, 2019
Dec. 31, 2018
Common Stock, Par Value Per Share $ 0.00001 $ 0.00001
Common Stock, Shares Authorized 200,000,000 200,000,000
Common Stock, Shares, Issued 93,527,473 93,477,473
Common Stock, Shares, Outstanding 93,527,473 93,477,473
v3.19.2
Consolidated Statement of Shareholders' Equity (Unaudited) - 6 months ended Jun. 30, 2019 - USD ($)
$ in Thousands
Common Stock [Member]
Additional Paid-In Capital [Member]
Accumulated Deficit [Member]
Accumulated Other Comprehensive Loss [Member]
Total
Beginning Balance at Dec. 31, 2018 $ 1 $ 42,048 $ (30,896) $ (1,166) $ 9,987
Beginning Balance (Shares) at Dec. 31, 2018 93,477,473        
Modified retrospective adjustment upon adoption of ASC 842     49   49
Other comprehensive income       372 372
Options exercised   21     21
Options exercised (in shares) 50,000        
Stock-based compensation   181     181
Net loss for the period     (5,192)   (5,192)
Ending Balance at Jun. 30, 2019 $ 1 $ 42,250 $ (36,039) $ (794) $ 5,418
Ending Balance (Shares) at Jun. 30, 2019 93,527,473        
v3.19.2
Consolidated Statement of Comprehensive Loss (Unaudited) - USD ($)
$ in Thousands
3 Months Ended 6 Months Ended
Jun. 30, 2019
Jun. 30, 2018
Jun. 30, 2019
Jun. 30, 2018
Total revenues $ 197 $ 234 $ 613 $ 473
Expenses        
Research and development expense 1,182 857 2,042 1,654
Selling, general and administrative expense 1,181 1,322 2,885 2,602
Depreciation of tangible assets 172 179 343 362
Total expenses 2,535 2,358 5,270 4,618
Operating loss (2,338) (2,124) (4,657) (4,145)
Interest income 32   61  
Net financing and interest expense (298) (277) (596) (520)
Net loss (2,604) (2,401) (5,192) (4,665)
Other comprehensive income (loss)        
Foreign currency translation adjustment 117 (35) 340 (107)
Change in fair value 8 4 32 (1)
Total other comprehensive income (loss) 125 (31) 372 (108)
Comprehensive loss $ (2,479) $ (2,432) $ (4,820) $ (4,773)
Basic and diluted weighted average number of shares outstanding 93,527,473 68,877,428 93,523,329 68,346,126
Basic and diluted loss per common share (note 16) $ (0.03) $ (0.04) $ (0.05) $ (0.07)
v3.19.2
Consolidated Statement of Cash Flows (Unaudited) - USD ($)
$ in Thousands
3 Months Ended 6 Months Ended
Jun. 30, 2019
Jun. 30, 2018
Jun. 30, 2019
Jun. 30, 2018
Funds (used) provided - Operating activities        
Net loss $ (2,604) $ (2,401) $ (5,192) $ (4,665)
Depreciation of tangible assets 172 179 343 362
Stock-based compensation 95 73 181 123
Accretion expense 124 94 244 167
DSU expense (98) 232 112 232
Interest payable by issuance of common shares   238   238
Lease expense 3   6  
Total Adjustment (2,308) (1,585) (4,306) (3,543)
Changes in non-cash items related to operations:        
Accounts receivable 208 170 349 138
Prepaid expenses 37 (215) 104 (387)
Investment tax credits receivable (107) (68) (209) (137)
Security deposits   (11)   (11)
Accounts payable and accrued liabilities (134) 199 (635) 239
Net change in non-cash items related to operations 4 75 (391) (158)
Net cash used in operating activities (2,304) (1,510) (4,697) (3,701)
Financing activities        
Repayment of term loans (178) (185) (337) (372)
Proceeds from exercise of warrants and stock options   154 21 549
Net proceeds from private placement   3,004   3,004
Transaction costs of private placement   (82)   (82)
Net cash (used in) provided by financing activities (178) 2,891 (316) 3,099
Investing activities        
Additions to leasehold improvements and equipment (141) (16) (211) (454)
Redemption of short-term investments 1,453 393 5,184 1,908
Acquisition of short-term investments     (1,469)  
Net cash provided by investing activities 1,312 377 3,504 1,454
(Decrease) Increase in cash (1,170) 1,758 (1,509) 852
Effect of foreign exchange on cash 124 (55) 275 (122)
Cash        
Beginning of period 6,627 618 6,815 1,591
End of period $ 5,581 $ 2,321 $ 5,581 $ 2,321
v3.19.2
Basis of Presentation
6 Months Ended
Jun. 30, 2019
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, 2018. Operating results for the six months ended June 30, 2019 are not necessarily indicative of the results that may be expected for the year ending December 31, 2019. 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.

v3.19.2
Going Concern
6 Months Ended
Jun. 30, 2019
Going Concern [Text Block]
2.

Going Concern

   

The Company has financed its operations to date primarily through public offerings of its common stock, bank loans, royalty, up-front and milestone payments, license fees, proceeds from exercise of warrants and options, research and development revenues and the sale of U.S. royalty on future sales of Forfivo XL®. The Company has devoted substantially all of its resources to its drug development efforts, conducting clinical trials to further advance the product pipeline, the expansion of its facilities, protecting its intellectual property and general and administrative functions relating to these operations. The future success of the Company is dependent on its ability to develop its product pipeline and ultimately upon its ability to attain profitable operations. As of June 30, 2019, the Company had cash and short-term investments totaling approximately $6,143. The Company does not have sufficient existing cash and short-term investments to support operations for the next year following the issuance of these financial statements. These conditions raise substantial doubt about the Company’s ability to continue as a going concern. Management’s plans to alleviate these conditions include pursuing one or more of the following steps to raise additional funding, none of which can be guaranteed or are entirely within the Company’s control:



  Raise funding through the possible sale of the Company’s common stock, including public or private equity financings.
     
  Raise funding through debt financing.
     
  Continue to seek partners to advance product pipeline.
     
  Initiate oral film manufacturing activities.
     
  Initiate contract oral film manufacturing activities.
 

If the Company is unable to raise capital when needed or on attractive terms, or if it is unable to procure partnership arrangements to advance its programs, the Company would be forced to delay, reduce or eliminate its research and development programs.

   

The accompanying consolidated interim financial statements have been prepared on a going concern basis, which contemplates the realization of assets and satisfaction of liabilities in the ordinary course of business. The accompanying consolidated interim financial statements do not include any adjustments or classifications that may result from the possible inability of the Company to continue as a going concern. Should the Company be unable to continue as a going concern, it may be unable to realize the carrying value of its assets and to meet its liabilities as they become due.

v3.19.2
Adoption of New Accounting Standards
6 Months Ended
Jun. 30, 2019
Adoption of New Accounting Standards [Text Block]
3.

Adoption of New Accounting Standards

   

The Company adopted Topic 842 Leases with a date of the initial application of January 1, 2019. As a result, the Company has changed its accounting policy for leases as detailed below.

   

The Company adopted Topic 842 using a modified retrospective approach with a date of initial application of January 1, 2019, which requires the recognition of the right-of-use assets and related operating and finance lease liabilities on the balance sheet. As a result, the consolidated balance sheet prior to January 1, 2019 was not restated, continues to be reported under ASC Topic 840, Leases, or ASC 840, which did not require the recognition of operating lease liabilities on the balance sheet, and is not comparative. Under ASC 842, all leases are required to be recorded on the balance sheet and are classified as either operating or finance leases. The lease classification affects the expense recognition in the income statement. Operating lease charges are recorded entirely in selling, general and administrative expense. Finance lease charges are split, where amortization of the right-of-use asset is recorded in selling, general and administrative expense and an implied interest component is recorded in financing and interest expense. At the moment of initial application, the Company did not hold any finance leases. The expense recognition for operating leases under ASC 842 is substantially consistent with ASC 840. As a result, there is no significant difference in our results of operations presented in our consolidated income statement and consolidated statement of comprehensive loss for each period presented.

 
   

The adoption of ASC 842 had a substantial impact on the Company’s balance sheet. The most significant impact was the recognition of the operating lease right-of-use asset and operating lease liability. Upon adoption, leases that were classified as operating leases under ASC 840 were classified as operating leases under ASC 842, and the Company recorded an adjustment of $726 to operating lease right-of-use asset and the related operating lease liability. The operating lease liability is based on the present value of the remaining minimum lease payments, determined under ASC 840, discounted using our secured incremental borrowing rate at the effective date of January 1, 2019, using the original lease term and the tenor. As permitted under ASC 842, the Company elected to use the practical expedient that permits to use hindsight in determining the lease term. The application of the practical expedients did not have a significant impact on the measurement of the operating lease liability.

   

The impact of the adoption of ASC 842 on the balance sheet as at December 31, 2018 was:

 
      As reported     Adoption of ASC 842     Balance  
      December 31, 2018     Increase (Decrease)     January 1, 2019  
  Operating lease right-of-use assets $  -   $  726   $  726  
  Total assets   20,018     726     20,744  
  Total current liabilities   2,722     127     2,849  
  Deferred lease obligations   49     (49 )   -  
  Operating lease liability   -     599     599  
  Total liabilities   10,031     677     10,708  
  Total shareholders’ equity   9,987     49     10,036  
  Total liabilities and shareholders’ equity   20,018     726     20,744  
 
The FASB issued ASU 2018-07 to expand the scope of Topic 718 to include share-based payment transactions for acquiring goods and services from non-employees. These amendments are effective for a public business entity for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. The adoption of this statement did not have a material effect on the Company’s financial position of results.
v3.19.2
Significant Accounting Policies
6 Months Ended
Jun. 30, 2019
Significant Accounting Policies [Text Block]
4. Significant Accounting Policies
   
  Revenue Recognition
   

The Company may enter into licensing and collaboration agreements for product development, licensing, supply and manufacturing for its product pipeline. The terms of the agreements may include non-refundable signing and licensing fees, milestone payments and royalties on any product sales derived from collaborations. These contracts are analyzed to identify all performance obligations forming part of these contracts. The transaction price of the contract is then determined. The transaction price is allocated between all performance obligations on a residual standalone selling price basis. The stand-alone selling price is estimated based on the comparable market prices, expected cost plus margin and the Company’s historical experience.

   

Revenue is measured based on a consideration specified in a contract with a customer, and excludes any sales incentives and amounts collected on behalf of third parties. The Company recognizes revenue when it satisfies a performance obligation by transferring control over a product or service to a customer.

   

Taxes assessed by a governmental authority that are both imposed on and concurrent with a specific revenue- producing transaction, that are collected by the Company from a customer, are excluded from revenue.

   

The following is a description of principal activities – separated by nature – from which the Company generates its revenue.

   
 

Research and Development Revenue

   

Revenues with corporate collaborators are recognized as the performance obligations are satisfied over time, and the related expenditures are incurred pursuant to the terms of the agreement.

   
 

Licensing and Collaboration Arrangements

 

 

Licenses are considered to be right-to-use licenses. As such, the Company recognizes the licenses revenues at a point in time, upon granting the licenses.

   

Milestone payments are considered variable consideration. As such, the Company estimates variable consideration at the most likely amount to which we expect to be entitled. The estimated amounts are included in the transaction price to the extent it is probable that a significant reversal of cumulative revenue recognized will not occur when the uncertainty associated with the variable consideration is resolved. At the end of each subsequent reporting period, the Company re-evaluates the probability of achievement of such development milestones and any related constraint, and if necessary, adjusts its estimate of the overall transaction price. Any such adjustments are recorded on a cumulative catch-up basis, which would affect license, research and other revenues in the period during which the adjustment is recognized. The process of successfully achieving the criteria for the milestone payments is highly uncertain. Consequently, there is significant risk that the Company may not earn all of the milestone payments for each of its contracts.

 

Royalties are typically calculated as a percentage of net sales realized by the Company’s licensees of its products (including their sub-licensees), as specifically defined in each agreement. The licensees’ sales generally consist of revenues from product sales of the Company’s product pipeline and net sales are determined by deducting the following: estimates for chargebacks, rebates, sales incentives and allowances, returns and losses and other customary deductions in each region where the Company has licensees. Revenues arising from royalties are considered variable consideration. As such, the Company estimates variable consideration at the most likely amount to which we expect to be entitled. The estimated amounts are included in the transaction price to the extent it is probable that a significant reversal of cumulative revenue recognized will not occur when the uncertainty associated with the variable consideration is resolved.

   

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.

Leases

Leases are classified as either finance leases or operating leases. A lease is classified as a finance lease if any one of the following criteria are met: the lease transfers ownership of the asset by the end of the lease term, the lease contains an option to purchase the asset that is reasonably certain to be exercised, the lease term is for a major part of the remaining useful life of the asset or the present value of the lease payments equals or exceeds substantially all of the fair value of the asset. A lease is classified as an operating lease if it does not meet any one of these criteria.

Substantially all of the Company’s operating leases are comprised of office space and property leases and the Company does not hold any finance leases.

For all leases at the lease commencement date, a right-of-use asset and a lease liability are recognized. The right-of-use asset represents the right to use the leased asset for the lease term. The lease liability represents the present value of the lease payments under the lease.
 

The right-of-use asset is initially measured at cost, which primarily comprises the initial amount of the lease liability, plus any initial costs incurred, consisting mainly of brokerage commissions, less any lease incentives received. All right-of-use assets are reviewed for impairment. The lease liability is initially measured the present value of the lease payments, discounted using the interest rate implicit in the lease or, if that rate cannot be readily determined, the Company’s secured incremental borrowing rate for the same term as the underlying lease.

   

Lease payments included in the measurement of the lease liability comprise the following: the fixed noncancelable lease payments, payments for optional renewal periods where it is reasonably certain the renewal period will be exercised, and payments for early termination options unless it is reasonably certain the lease will not be terminated early.

 

 

 

Lease modifications result in remeasurement of the lease liability.

 

 

Lease expense for operating leases consists of the lease payments plus any initial direct costs, primarily brokerage commissions, and is recognized on a straight-line basis over the lease term. Included in lease expense are any variable lease payments incurred in the period that were not included in the initial lease liability.

 

 

The Company has elected not to recognize right-of-use assets and lease liabilities for short-tern leases that have a term of 12 months or less. The effect of short-term leases on our right-of-use asset and lease liability was not material.

   
 

Recent Accounting Pronouncements

   
 

ASU 2019-05 Credit Losses (Topic 326): Targeted Transition Relief

   

The FASB issued ASU 2019-05 which provides entities that have certain instruments within the scope of Subtopic 326-20, Financial Instruments – Credit Losses – Measured at Amortized Cost, with an option to irrevocably elect the fair value option in Subtopic 825-10, Financial Instruments – Overall, applied on an instrument-by-instrument basis for eligible instruments, upon adoption of Topic 326. The fair value option election does not apply to held- to-maturity debt securities. An entity that elects the fair value option should subsequently apply the guidance in Subtopics 820-10, Fair Value Measurement – Overall, and 825-10.

   

These amendments are effective for fiscal years beginning after December 15, 2019. The Company is currently evaluating the impact of this Statement on its consolidated financial statements.

   
 

ASU 2018-19 Codification Improvements to Topic 326, Financial Instruments—Credit Losses

   

The FASB issued ASU 2018-19 which mitigates transition complexity by requiring entities other than public business entities, including not-for-profit organizations and certain employee benefit plans, to implement the credit losses standard issued in 2016, for fiscal years beginning after December 15, 2021, including interim periods within those fiscal years. This aligns the implementation date for their annual financial statements with the implementation date for their interim financial statements. The guidance also clarifies that receivables arising from operating leases are not within the scope of the credit losses standard, but rather, should be accounted for in accordance with the leases standard.

 

These amendments are effective for fiscal years beginning after December 15, 2019. The Company is currently evaluating the impact of this Statement on its consolidated financial statements.

   

ASU 2018-18 Collaborative Arrangements (Topic 808): Clarifying the Interaction Between Topic 808 and Topic 606

   

The FASB issued ASU 2018-18 which provides guidance on how to assess whether certain transactions between collaborative arrangement participants should be accounted for within the revenue recognition standard.

   

The ASU also provides more comparability in the presentation of revenue for certain transactions between collaborative arrangement participants. It accomplishes this by allowing organizations to only present units of account in collaborative arrangements that are within the scope of the revenue recognition standard together with revenue accounted for under the revenue recognition standard. The parts of the collaborative arrangement that are not in the scope of the revenue recognition standard should be presented separately from revenue accounted for under the revenue recognition standard.

   

These amendments are effective for fiscal years beginning after December 15, 2019. The Company is currently evaluating the impact of this Statement on its consolidated financial statements.

   

ASU 2018-13 – Fair Value Measurement (Topic 820): Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement

   

The FASB issued ASU 2018-13 which modifies the disclosure requirements in Topic 820 as follows:

   

Removals

   

-The amount of and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy;

   

-The policy for timing of transfers between levels;

   

-The valuation processes for Level 3 fair value measurements; and

   

-For nonpublic entities, the changes in unrealized gains and losses for the period included in earnings for recurring Level 3 fair value measurements held at the end of the reporting period.

   

Modifications

   

-In lieu of a rollforward for Level 3 fair value measurements, a nonpublic entity is required to disclose transfers into and out of Level 3 of the fair value hierarchy and purchases and issues of Level 3 assets and liabilities;

   

-For investments in certain entities that calculate net asset value, an entity is required to disclose the timing of liquidation of an investee’s assets and the date when restrictions from redemption might lapse only if the investee has communicated the timing to the entity or announced the timing publicly; and

   

-The amendments clarify that the measurement uncertainty disclosure is to communicate information about the uncertainty in measurement as of the reporting date.

 
 

Additions

 

 

-The changes in unrealized gains and losses for the period included in other comprehensive income for recurring Level 3 fair value measurements held at the end of the reporting period; and

 

 

- The range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements. For certain unobservable inputs, an entity may disclose other quantitative information (such as the median or arithmetic average) in lieu of the weighted average if the entity determines that other quantitative

 

 

information would be a more reasonable and rational method to reflect the distribution of unobservable inputs used to develop Level 3 fair value measurements.

 

 

These amendments are effective for fiscal years beginning after December 15, 2019. The Company is currently evaluating the impact of this Statement on its consolidated financial statements.

v3.19.2
Inventory
6 Months Ended
Jun. 30, 2019
Inventory Disclosure [Abstract]  
Inventory [Text Block]
5.

Inventory

 

 

 

Inventory as at June 30, 2019 consisted of raw materials in the amount of $391 (2018: $375).

v3.19.2
Leasehold Improvements and Equipment
6 Months Ended
Jun. 30, 2019
Leasehold Improvements and Equipment [Text Block]
6.

Leasehold Improvements and Equipment

 
                        December 31,  
                  June 30, 2019     2018  
            Accumulated     Net Carrying     Net Carrying  
      Cost     Depreciation     Amount     Amount  
                           
  Manufacturing equipment $  4,378   $  731   $  3,647   $  3,512  
  Laboratory and office equipment   1,343     801     542     562  
  Computer equipment   124     76     48     39  
  Leasehold improvements   3,237     1,100     2,137     2,135  
                           
    $  9,082   $  2,708   $  6,374   $  6,248  
 
From the balance of manufacturing equipment, an amount of $1,775 thousand (2018: $1,703 thousand) represents assets which are still under construction as at June 30, 2019 and are consequently not depreciated.
v3.19.2
Bank indebtedness
6 Months Ended
Jun. 30, 2019
Bank indebtedness [Text Block]
7.

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 ($191 thousand) and corporate credits cards of up to CAD$75 ($57 thousand) and foreign exchange contracts limited to CAD$425 thousand ($325 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 8) are secured by a first ranking movable hypothec on all present and future movable property of the Company for an amount of CAD$4,250,000 ($3,247,500) plus 20%, 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 June 30, 2019, the Company has not drawn on its credit facility.

v3.19.2
Long-term debt
6 Months Ended
Jun. 30, 2019
Long-term debt [Text Block]
8.

Long-term Debt

   

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

 
      June 30, 2019     December 31, 2018  
      $     $  
               
               
               
  Term loan facility   1,287     1,502  
  Secured loan   280     330  
  Total debt   1,567     1,832  
               
  Less: current portion   740     692  
               
  Total long-term debt   827     1,140  

The Company’s term loan facility consists of a total of CAD$4 million ($3.06 million) bearing interest at the Bank’s prime lending rate plus 2.50%, with monthly principal repayments of CAD$62 thousand ($47 thousand). The term loan is subject to the same security and financial covenants as the bank indebtedness (see note 7).

The secured loan has a principal balance authorized of CAD$1 million ($764 thousand) bearing interest at prime plus 7.3%, reimbursable in monthly principal payments of CAD$17 thousand ($13 thousand) from January 2017 to March 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.

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

2019 379 (CAD 497)
2020 722 (CAD 945)
2021 466 (CAD 610)
v3.19.2
Convertible Debentures
6 Months Ended
Jun. 30, 2019
Convertible Debentures [Text Block]
9.  Convertible Debentures
   

On July 12, 2017, the Company closed its previously announced prospectus offering (the “Offering”) of convertible unsecured subordinated debentures of the Corporation (the “Debentures”) for gross aggregate proceeds of CAD$6,838,000 ($5,225,000). Pursuant to the Offering, the Corporation issued an aggregate principal amount of CAD$6,838,000 ($5,225,000) of Debentures at a price of CAD$1,000 ($764) per Debenture. The Debentures will mature on June 30, 2020 and bear interest at annual rate of 8% payable semi-annually on the last day of June and December of each year, commencing on December 31, 2017. The interest may be paid in common shares at the option of the Corporation. The Debentures will be convertible at the option of the holders at any time prior to the close of business on the earlier of June 30, 2020 and the business day immediately preceding the date specified by the Corporation for redemption of Debentures. The conversion price will be CAD$1.35 ($1.03) (the “Conversion Price”) per common share of the Corporation (“Share”), being a conversion rate of approximately 740 Shares per CAD$1,000 ($764) principal amount of Debentures, subject to adjustment in certain events.

   

On August 8, 2017, the Company closed a second tranche of its prospectus Offering of convertible unsecured subordinated debentures of the Corporation for which a first closing took place on July 12, pursuant to which it had raised additional gross proceeds of CAD$762,000 ($582,000).

   

Together with the principal amount of CAD$6,838,000 ($5,225,000) of Debentures issued on July 12, 2017, the Corporation issued a total aggregate principal amount of CAD$7,600,000 ($5,807,000) of Debentures at a price of CAD$1,000 ($764) per Debenture.

   

The convertible debentures have been recorded as a liability. Total transactions costs in the amount of CAD$1,237,000 ($945,000) were recorded against the liability. The accretion expense for the six-month period ended June 30, 2019 amounts to CAD$213,000 ($160,000), compared to CAD$185,000 ($145,000) for the comparative period in 2018.

   
 

The components of the convertible debentures are as follows:

 
      June 30,     December 31,        
      2019     2018        
                     
                     
  Face value of the convertible debentures $  5,791   $  5,556        
  Transaction costs   (945 )   (907 )      
  Accretion   578     398        
  Convertible debentures $  5,424   $  5,047        
 
The interest accrued on the convertible debentures for the six-month period ended June 30, 2019 amounts to CAD$303 thousand ($227 thousand) and is recorded in financing and interest expense. The interest on the convertible debentures for the six-month period ended June 30, 2018. amounted to CAD$304 thousand ($238 thousand) and was paid by issuance of 307,069 common shares.
v3.19.2
Convertible Note
6 Months Ended
Jun. 30, 2019
Notes to Financial Statements [Abstract]  
Convertible Notes [Text Block]
10.  Convertible Notes
   

On May 8, 2018, the Company closed its previously announced offering by way of private placement (the “Offering”). In connection with the Offering, the Company issued 320 units (the “Units”) at a subscription price of $10,000 per Unit for gross proceeds of $3,200,000. A related party of the Company participated in the Offering and subscribed for an aggregate of two Units.

   

Each Unit is comprised of (i) 7,940 common shares of the Corporation (“Common Shares”), (ii) a $5,000 convertible 6% note (a “Note”), and (iii) 7,690 warrants to purchase common shares of the Corporation (“Warrants”). Each Note bears interest at a rate of 6% (payable quarterly, in arrears, with the first payment being due on September 1, 2018), matures on June 1, 2021 and is convertible into Common Shares at a conversion price of $0.80 per Common Share. Each Warrant entitles its holder to purchase one Common Share at a price of $0.80 per Common Share until June 1, 2021.

   

In connection with the Offering, the Company paid to the Agents a cash commission of approximately $157,800 in the aggregate and issued non-transferable agents’ warrants to the Agents, entitling the Agents to purchase 243,275 common shares at a price of $0.80 per share until June 1, 2021. Management has determined the value of the agents’ warrants to be $50,000.

   

The proceeds of the Units are attributed to liability and equity components based on the fair value of each component as follows:

 
      Gross proceeds     Transaction costs     Net proceeds  
  Common stock $  1,627   $  167   $  1,460  
  Convertible notes   1,086     111     975  
  Warrants   487     50     437  
    $  3,200   $  328   $  2,872  

The convertible notes have been recorded as a liability. Total transactions costs in the amount of $111 thousand were recorded against the liability. The accretion expense for the six-month period ended June 30, 2019 amounts to $86,000 (2018: $22,000).

The components of the convertible notes are as follows:

      June 30,     December 31,  
      2019     2018  
               
               
  Attributed value of net proceeds to convertible notes $  975   $  975  
  Accretion   184     98  
  Convertible note $  1,159   $  1,073  
 
The interest on the convertible notes for the six-month period ended June 30, 2019 amounts to $48 thousand and is recorded in financing and interest expense (2018: $14).
v3.19.2
Capital Stock
6 Months Ended
Jun. 30, 2019
Capital Stock [Text Block]
11.

Capital Stock

 
      June 30,     December 31,  
      2019     2018  
  Authorized -        
               
  200,000,000 common shares of $0.00001 par value 
  20,000,000 preferred shares of $0.00001 par value
       
               
  Issued -            
               
    93,527,473 (December 31, 2018 - 93,477,473) common shares $  1   $  1  
v3.19.2
Additional Paid-In Capital
6 Months Ended
Jun. 30, 2019
Additional Paid-In Capital [Text Block]
12.  Additional Paid-In Capital
   
  Stock options
   

On March 27, 2019, 100,000 options to purchase common stock were granted to an employee under the 2016 Stock Option Plan. The options have an exercise price of $0.69. The options granted vest over a period of 2 years at a rate of 25% every six months and expire 10 years after the grant date. The stock options were accounted for at their fair value, as determined by the Black-Scholes valuation model, of approximately $40 thousand.

 

 

On January 16, 2018, 100,000 options to purchase common stock were granted to an employee under the 2016 Stock Option Plan. The options have an exercise price of $0.79. The options granted vest over a period of 2 years at a rate of 25% every six months and expire 10 years after the grant date. The stock options were accounted for at their fair value, as determined by the Black-Scholes valuation model, of approximately $44 thousand.

 

 

On April 10, 2018, 275,000 options to purchase common stock were granted to employees under the 2016 Stock Option Plan. The options have an exercise price of $0.66. The options granted vest over a period of 2 years at a rate of 25% every six months and expire 10 years after the grant date. The stock options were accounted for at their fair value, as determined by the Black-Scholes valuation model, of approximately $99 thousand.

 

 

On June 11, 2018, 800,000 options to purchase common stock were granted to officers and employees under the 2016 Stock Option Plan. The options have an exercise price of $0.76. The options granted vest over a period of 2 years at a rate of 25% every six months and expire 10 years after the grant date. The stock options were accounted for at their fair value, as determined by the Black-Scholes valuation model, of approximately $334 thousand.

 

 

During the six-month period ended June 30, 2019 a total of 50,000 stock options were exercised for 50,000 common shares having a par value of $0 thousand in aggregate, for cash consideration of $21 thousand, resulting in an increase in additional paid-in capital of $21 thousand.

 

 

During the six-month period ended June 30, 2018 a total of 25,000 stock options were exercised for 25,000 common shares having a par value of $0 thousand in aggregate, for cash consideration of $13 thousand, resulting in an increase in additional paid-in capital of $13 thousand.

 

Compensation expenses for stock-based compensation of $181 thousand and $123 thousand were recorded during the six-month periods ended June 30, 2019 and 2018, respectively. An amount of $157 thousand expensed in the six-month period ended June 30, 2019 relates to stock options granted to employees and directors and an amount of $24 thousand relates to stock options granted to consultants. An amount of $119 thousand expensed in the six-month period ended June 30, 2018 relates to stock options granted to employees and directors and an amount of $4 thousand relates to stock options granted to a consultant. As at June 30, 2019, the Company has $333 thousand (2018 - $550 thousand) of unrecognized stock-based compensation.

   
 

Warrants

   

During the six-month period ended June 30, 2018 a total of 950,000 warrants were exercised for 950,000 common shares having a par value of $Nil in aggregate, for cash consideration of approximately $536 thousand, resulting in an increase in additional paid-in capital of approximately $536 thousand. No warrants were exercised during the six-month period ended June 30, 2019.

   
 

Deferred Share Units (“DSUs”)

 

 

Effective February 7, 2018, the Board approved a Deferred Share Unit Plan (DSU Plan) to compensate non- employee directors as part of their annual remuneration. Under the DSU Plan, the Board may grant Deferred Share Units (“DSUs”) to the participating directors at its discretion and, in addition, each participating director may elect to receive all or a portion of his or her annual cash stipend in the form of DSUs. To the extent DSUs are granted, the amount of compensation that is deferred is converted into a number of DSUs, as determined by the market price of our Common Stock on the effective date of the election. These DSUs are converted back into a cash amount at the expiration of the deferral period based on the market price of our Common Stock on the expiration date and paid to the director in cash in accordance with the payout terms of the DSU Plan. As the DSUs are on a cash-only basis, no shares of Common Stock will be reserved or issued in connection with the DSUs. On March 27, 2019, 271,740 DSUs (287,355 on May 16, 2018) have been granted under the DSU Plan, accordingly, an amount of $132 thousand ($232 thousand in 2018) has been recognized in general and administrative expenses.

   
  Performance and Restricted Share Units (“PRSUs”)
   
  No PRSUs were granted during the six-month periods ended June 30, 2019 and 2018.
v3.19.2
Revenues
6 Months Ended
Jun. 30, 2019
Revenue from Contract with Customer [Abstract]  
Revenues [Text Block]
13.

Revenues

   

The following table presents our revenues disaggregated by revenue source. Sales and usage-based taxes are excluded from revenues:

 
    June 30, 2019     June 30, 2018  
               
  Research and development agreements $  613   $  473  
               

The following table presents our revenues disaggregated by timing of recognition:

      June 30, 2019     June 30, 2018  
               
  (in U.S. $ thousands)            
  Product and services transferred at point in time $  371   $  -  
  Products and services transferred over time   242     473  
    $  613   $  473  

The following table presents our revenues disaggregated by geography, based on the billing addresses of our customers:

     
June 30, 2019
   
June 30, 2018
 
               
  Europe $  534     410  
  Canada   79     63  
    $  613   $  473  

Remaining performance obligations

As at June 30, 2019, the aggregate amount of the transaction price allocated to the remaining performance obligation is $1,525 representing research and development agreements, the majority of which is expected to be recognized in the next twelve months. The Company is also eligible to receive up to $4,560 in research and development milestone payments, approximately 60% of which is expected to be recognized in the next three years, with the remaining 40% expected in the two years following; up to $28,339 in commercial sales milestone payments, the majority of which is expected to be recognized in the next five years, but is wholly dependent on the marketing efforts of our development partners. In addition, the Company is entitled to receive royalties on potential sales.
v3.19.2
Leases
6 Months Ended
Jun. 30, 2019
Leases [Abstract]  
Leases [Text Block]
14.

Leases

   

Substantially all our operating lease right-of-use assets and operating lease liability represents leases for office space and property to conduct our business.

   

The operating lease expense for the six-month period ended June 30, 2019 included in general and administrative expenses is $76 thousand. The cash outflows from operating leases for the six-month period ended June 30, 2019 was $70 thousand.

   

The weighted average remaining lease term and the weighted average discount rate for operating leases at June 30, 2019 were 6.7 years and 10%, respectively.

   

The following table reconciles the undiscounted cash flows for the operating leases as et June 30, 2019 to the operating lease liabilities recorded on the balance sheet:

 
      Operating Leases  
         
  2019 Remainder $  74  
  2020   149  
  2021   151  
  2022   155  
  2023   156  
  2024   160  
  Thereafter   187  
  Total undiscounted lease payments   1,032  
  Less: Interest   309  
  Present value of lease liabilities $ 723  
 
Current portion of operating lease liability $135
Operating lease liability $588
v3.19.2
Related Party Transactions
6 Months Ended
Jun. 30, 2019
Related Party Transactions [Text Block]
15.

Related Party Transactions

   

Included in management salaries for the six-month period ended June 30, 2019 are $40 thousand (2018 - $17) for options granted to the Chief Executive Officer, $27 thousand (2018 - $7 thousand) for options granted to the President and Chief Financial Officer, $15 (2018 - $6) for options granted to the Vice President, Operations, $17 thousand (2018 - $6 thousand) for options granted to the Vice-President, Research and Development, $17 thousand (2018 – $23 thousand) for options granted to Vice-President, Business and Corporate Development under the 2016 Stock Option Plan and $Nil (2018 - $6 thousand) for options granted to non-employee directors.

   

Also included general and administrative expense for the six-month period ended June 30, 2019 are director fees of $116 thousand (2018 - $124 thousand) and DSU of $117 thousand (2018: $232).

   
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.
v3.19.2
Basic and Diluted Loss Per Common Share
6 Months Ended
Jun. 30, 2019
Basic and Diluted Loss Per Common Share [Text Block]
16.

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 debenture and notes have been excluded from the calculation of diluted loss per share since they are anti-dilutive.
v3.19.2
Subsequent Event
6 Months Ended
Jun. 30, 2019
Subsequent Events [Abstract]  
Subsequent Event
17. Subsequent Event

On July 9, 2019, IntelGenx terminated the potential acquisition of Laboval. As a result of the termination, the deposit in the amount of CAD$275,000 ($210,000) in trust will be forfeited and transferred to Laboval as required under the terms of the LOI.

v3.19.2
Significant Accounting Policies (Policies)
6 Months Ended
Jun. 30, 2019
Revenue Recognition [Policy Text Block]
  Revenue Recognition
   

The Company may enter into licensing and collaboration agreements for product development, licensing, supply and manufacturing for its product pipeline. The terms of the agreements may include non-refundable signing and licensing fees, milestone payments and royalties on any product sales derived from collaborations. These contracts are analyzed to identify all performance obligations forming part of these contracts. The transaction price of the contract is then determined. The transaction price is allocated between all performance obligations on a residual standalone selling price basis. The stand-alone selling price is estimated based on the comparable market prices, expected cost plus margin and the Company’s historical experience.

   

Revenue is measured based on a consideration specified in a contract with a customer, and excludes any sales incentives and amounts collected on behalf of third parties. The Company recognizes revenue when it satisfies a performance obligation by transferring control over a product or service to a customer.

   

Taxes assessed by a governmental authority that are both imposed on and concurrent with a specific revenue- producing transaction, that are collected by the Company from a customer, are excluded from revenue.

   

The following is a description of principal activities – separated by nature – from which the Company generates its revenue.

   
 

Research and Development Revenue

   

Revenues with corporate collaborators are recognized as the performance obligations are satisfied over time, and the related expenditures are incurred pursuant to the terms of the agreement.

   
 

Licensing and Collaboration Arrangements

 

 

Licenses are considered to be right-to-use licenses. As such, the Company recognizes the licenses revenues at a point in time, upon granting the licenses.

   

Milestone payments are considered variable consideration. As such, the Company estimates variable consideration at the most likely amount to which we expect to be entitled. The estimated amounts are included in the transaction price to the extent it is probable that a significant reversal of cumulative revenue recognized will not occur when the uncertainty associated with the variable consideration is resolved. At the end of each subsequent reporting period, the Company re-evaluates the probability of achievement of such development milestones and any related constraint, and if necessary, adjusts its estimate of the overall transaction price. Any such adjustments are recorded on a cumulative catch-up basis, which would affect license, research and other revenues in the period during which the adjustment is recognized. The process of successfully achieving the criteria for the milestone payments is highly uncertain. Consequently, there is significant risk that the Company may not earn all of the milestone payments for each of its contracts.

 

Royalties are typically calculated as a percentage of net sales realized by the Company’s licensees of its products (including their sub-licensees), as specifically defined in each agreement. The licensees’ sales generally consist of revenues from product sales of the Company’s product pipeline and net sales are determined by deducting the following: estimates for chargebacks, rebates, sales incentives and allowances, returns and losses and other customary deductions in each region where the Company has licensees. Revenues arising from royalties are considered variable consideration. As such, the Company estimates variable consideration at the most likely amount to which we expect to be entitled. The estimated amounts are included in the transaction price to the extent it is probable that a significant reversal of cumulative revenue recognized will not occur when the uncertainty associated with the variable consideration is resolved.

Leasehold Improvements and Equipment [Policy Text Block]

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.

Leases [Policy Text Block]

Leases

Leases are classified as either finance leases or operating leases. A lease is classified as a finance lease if any one of the following criteria are met: the lease transfers ownership of the asset by the end of the lease term, the lease contains an option to purchase the asset that is reasonably certain to be exercised, the lease term is for a major part of the remaining useful life of the asset or the present value of the lease payments equals or exceeds substantially all of the fair value of the asset. A lease is classified as an operating lease if it does not meet any one of these criteria.

Substantially all of the Company’s operating leases are comprised of office space and property leases and the Company does not hold any finance leases.

For all leases at the lease commencement date, a right-of-use asset and a lease liability are recognized. The right-of-use asset represents the right to use the leased asset for the lease term. The lease liability represents the present value of the lease payments under the lease.
 

The right-of-use asset is initially measured at cost, which primarily comprises the initial amount of the lease liability, plus any initial costs incurred, consisting mainly of brokerage commissions, less any lease incentives received. All right-of-use assets are reviewed for impairment. The lease liability is initially measured the present value of the lease payments, discounted using the interest rate implicit in the lease or, if that rate cannot be readily determined, the Company’s secured incremental borrowing rate for the same term as the underlying lease.

   

Lease payments included in the measurement of the lease liability comprise the following: the fixed noncancelable lease payments, payments for optional renewal periods where it is reasonably certain the renewal period will be exercised, and payments for early termination options unless it is reasonably certain the lease will not be terminated early.

 

 

 

Lease modifications result in remeasurement of the lease liability.

 

 

Lease expense for operating leases consists of the lease payments plus any initial direct costs, primarily brokerage commissions, and is recognized on a straight-line basis over the lease term. Included in lease expense are any variable lease payments incurred in the period that were not included in the initial lease liability.

 

 

The Company has elected not to recognize right-of-use assets and lease liabilities for short-tern leases that have a term of 12 months or less. The effect of short-term leases on our right-of-use asset and lease liability was not material.

Recent Accounting Pronouncements [Policy Text Block]
 

Recent Accounting Pronouncements

   
 

ASU 2019-05 Credit Losses (Topic 326): Targeted Transition Relief

   

The FASB issued ASU 2019-05 which provides entities that have certain instruments within the scope of Subtopic 326-20, Financial Instruments – Credit Losses – Measured at Amortized Cost, with an option to irrevocably elect the fair value option in Subtopic 825-10, Financial Instruments – Overall, applied on an instrument-by-instrument basis for eligible instruments, upon adoption of Topic 326. The fair value option election does not apply to held- to-maturity debt securities. An entity that elects the fair value option should subsequently apply the guidance in Subtopics 820-10, Fair Value Measurement – Overall, and 825-10.

   

These amendments are effective for fiscal years beginning after December 15, 2019. The Company is currently evaluating the impact of this Statement on its consolidated financial statements.

   
 

ASU 2018-19 Codification Improvements to Topic 326, Financial Instruments—Credit Losses

   

The FASB issued ASU 2018-19 which mitigates transition complexity by requiring entities other than public business entities, including not-for-profit organizations and certain employee benefit plans, to implement the credit losses standard issued in 2016, for fiscal years beginning after December 15, 2021, including interim periods within those fiscal years. This aligns the implementation date for their annual financial statements with the implementation date for their interim financial statements. The guidance also clarifies that receivables arising from operating leases are not within the scope of the credit losses standard, but rather, should be accounted for in accordance with the leases standard.

 

These amendments are effective for fiscal years beginning after December 15, 2019. The Company is currently evaluating the impact of this Statement on its consolidated financial statements.

   

ASU 2018-18 Collaborative Arrangements (Topic 808): Clarifying the Interaction Between Topic 808 and Topic 606

   

The FASB issued ASU 2018-18 which provides guidance on how to assess whether certain transactions between collaborative arrangement participants should be accounted for within the revenue recognition standard.

   

The ASU also provides more comparability in the presentation of revenue for certain transactions between collaborative arrangement participants. It accomplishes this by allowing organizations to only present units of account in collaborative arrangements that are within the scope of the revenue recognition standard together with revenue accounted for under the revenue recognition standard. The parts of the collaborative arrangement that are not in the scope of the revenue recognition standard should be presented separately from revenue accounted for under the revenue recognition standard.

   

These amendments are effective for fiscal years beginning after December 15, 2019. The Company is currently evaluating the impact of this Statement on its consolidated financial statements.

   

ASU 2018-13 – Fair Value Measurement (Topic 820): Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement

   

The FASB issued ASU 2018-13 which modifies the disclosure requirements in Topic 820 as follows:

   

Removals

   

-The amount of and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy;

   

-The policy for timing of transfers between levels;

   

-The valuation processes for Level 3 fair value measurements; and

   

-For nonpublic entities, the changes in unrealized gains and losses for the period included in earnings for recurring Level 3 fair value measurements held at the end of the reporting period.

   

Modifications

   

-In lieu of a rollforward for Level 3 fair value measurements, a nonpublic entity is required to disclose transfers into and out of Level 3 of the fair value hierarchy and purchases and issues of Level 3 assets and liabilities;

   

-For investments in certain entities that calculate net asset value, an entity is required to disclose the timing of liquidation of an investee’s assets and the date when restrictions from redemption might lapse only if the investee has communicated the timing to the entity or announced the timing publicly; and

   

-The amendments clarify that the measurement uncertainty disclosure is to communicate information about the uncertainty in measurement as of the reporting date.

 
 

Additions

 

 

-The changes in unrealized gains and losses for the period included in other comprehensive income for recurring Level 3 fair value measurements held at the end of the reporting period; and

 

 

- The range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements. For certain unobservable inputs, an entity may disclose other quantitative information (such as the median or arithmetic average) in lieu of the weighted average if the entity determines that other quantitative

 

 

information would be a more reasonable and rational method to reflect the distribution of unobservable inputs used to develop Level 3 fair value measurements.

 

 

These amendments are effective for fiscal years beginning after December 15, 2019. The Company is currently evaluating the impact of this Statement on its consolidated financial statements.

v3.19.2
Adoption of New Accounting Standards (Tables)
6 Months Ended
Jun. 30, 2019
Schedule of impact of the adoption of ASC 842 on the balance sheet [Table Text Block]
      As reported     Adoption of ASC 842     Balance  
      December 31, 2018     Increase (Decrease)     January 1, 2019  
  Operating lease right-of-use assets $  -   $  726   $  726  
  Total assets   20,018     726     20,744  
  Total current liabilities   2,722     127     2,849  
  Deferred lease obligations   49     (49 )   -  
  Operating lease liability   -     599     599  
  Total liabilities   10,031     677     10,708  
  Total shareholders’ equity   9,987     49     10,036  
  Total liabilities and shareholders’ equity   20,018     726     20,744  
v3.19.2
Significant Accounting Policies (Tables)
6 Months Ended
Jun. 30, 2019
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
v3.19.2
Leasehold Improvements and Equipment (Tables)
6 Months Ended
Jun. 30, 2019
Schedule of Leasehold Improvements and Equipment [Table Text Block]

 
                  December 31,  
                  June 30, 2019     2018  
            Accumulated     Net Carrying     Net Carrying  
      Cost     Depreciation     Amount     Amount  
                           
  Manufacturing equipment $  4,378   $  731   $  3,647   $  3,512  
  Laboratory and office equipment   1,343     801     542     562  
  Computer equipment   124     76     48     39  
  Leasehold improvements   3,237     1,100     2,137     2,135  
                           
    $  9,082   $  2,708   $  6,374   $  6,248  
v3.19.2
Long-term debt (Tables)
6 Months Ended
Jun. 30, 2019
Schedule of Term loan [Table Text Block]

 
June 30, 2019     December 31, 2018  
      $     $  
               
               
               
  Term loan facility   1,287     1,502  
  Secured loan   280     330  
  Total debt   1,567     1,832  
               
  Less: current portion   740     692  
               
  Total long-term debt   827     1,140  
Schedule of Term loan principal repayments [Table Text Block]
2019 379 (CAD 497)
2020 722 (CAD 945)
2021 466 (CAD 610)
v3.19.2
Convertible Debentures (Tables)
6 Months Ended
Jun. 30, 2019
Schedule of Convertible Debt [Table Text Block]
      June 30,     December 31,        
      2019     2018        
                     
                     
  Face value of the convertible debentures $  5,791   $  5,556        
  Transaction costs   (945 )   (907 )      
  Accretion   578     398        
  Convertible debentures $  5,424   $  5,047    
v3.19.2
Convertible Note (Tables)
6 Months Ended
Jun. 30, 2019
Notes to Financial Statements [Abstract]  
Schedule of Capital Units [Table Text Block]
      Gross proceeds     Transaction costs     Net proceeds  
  Common stock $  1,627   $  167   $  1,460  
  Convertible notes   1,086     111     975  
  Warrants   487     50     437  
    $  3,200   $  328   $  2,872  
Schedule of Components of the Convertible Notes [Table Text Block]
      June 30,     December 31,  
      2019     2018  
               
               
  Attributed value of net proceeds to convertible notes $  975   $  975  
  Accretion   184     98  
  Convertible note $  1,159   $  1,073  
v3.19.2
Capital Stock (Tables)
6 Months Ended
Jun. 30, 2019
Schedule of Stock by Class [Table Text Block]
  Authorized -        
               
  200,000,000 common shares of $0.00001 par value 
  20,000,000 preferred shares of $0.00001 par value
       
               
  Issued -            
               
    93,527,473 (December 31, 2018 - 93,477,473) common shares $  1   $  1  
v3.19.2
Revenues (Tables)
6 Months Ended
Jun. 30, 2019
Revenue from Contract with Customer [Abstract]  
Schedule of Disaggregation of Revenue [Table Text Block]
    June 30, 2019     June 30, 2018  
               
  Research and development agreements $  613   $  473  
               
Schedule of Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Table Text Block]
      June 30, 2019     June 30, 2018  
               
  (in U.S. $ thousands)            
  Product and services transferred at point in time $  371   $  -  
  Products and services transferred over time   242     473  
    $  613   $  473  
Schedule of Revenue from External Customers and Long-Lived Assets, by Geographical Areas [Table Text Block]
     
June 30, 2019
   
June 30, 2018
 
               
  Europe $  534     410  
  Canada   79     63  
    $  613   $  473  
v3.19.2
Leases (Tables)
6 Months Ended
Jun. 30, 2019
Leases [Abstract]  
Schedule of undiscounted cash flows for the operating leases [Table Text Block]
      Operating Leases  
         
  2019 Remainder $  74  
  2020   149  
  2021   151  
  2022   155  
  2023   156  
  2024   160  
  Thereafter   187  
  Total undiscounted lease payments   1,032  
  Less: Interest   309  
  Present value of lease liabilities $ 723  
 
Current portion of operating lease liability $135
Operating lease liability $588
v3.19.2
Going Concern (Narrative) (Details)
$ in Thousands
Jun. 30, 2019
USD ($)
Cash and short-term investments $ 6,143
v3.19.2
Adoption of New Accounting Standards (Narrative) (Details) - USD ($)
$ in Thousands
Jun. 30, 2019
Dec. 31, 2018
Operating lease right-of-use assets related to operating lease liability $ 717  
Accounting Standards Update 842 [Member]    
Operating lease right-of-use assets related to operating lease liability   $ 726
Restatement Adjustment [Member] | Accounting Standards Update 842 [Member]    
Operating lease right-of-use assets related to operating lease liability   $ 726
v3.19.2
Inventory (Narrative) (Details) - USD ($)
$ in Thousands
Jun. 30, 2019
Jun. 30, 2018
Inventory Disclosure [Abstract]    
Raw materials inventory $ 391 $ 375
v3.19.2
Leasehold Improvements and Equipment (Narrative) (Details) - USD ($)
$ in Thousands
Jun. 30, 2019
Dec. 31, 2018
Property, Plant and Equipment, Net $ 6,374 $ 6,248
Asset not yet in service [Member]    
Property, Plant and Equipment, Net $ 1,775 $ 1,703
v3.19.2
Bank indebtedness (Narrative) (Details) - 6 months ended Jun. 30, 2019
$ in Thousands, $ in Thousands
USD ($)
CAD ($)
Line of Credit Facility, Interest Rate Description Bank's prime lending rate plus 2%.  
Line of Credit Facility, Collateral The credit facility and term loan (see note 8) are secured by a first ranking movable hypothec on all present and future movable property of the Company for an amount of CAD$4,250,000 ($3,247,500) plus 20%, and a 50% guarantee by Export Development Canada, a Canadian Crown corporation export credit agency.  
Line Of Credit Facility, Collateral Amount $ 3,247,500 $ 4,250,000
Line Of Credit Facility, Collateral Percentage 20.00%  
Line Of Credit Facility, Guarantee Percentage By Export Development Canada 50.00%  
Line of Credit [Member]    
Long-term Line of Credit $ 191 250
Corporate Credit Cards [Member]    
Long-term Line of Credit 57 75
Foreign Exchange Contract [Member]    
Long-term Line of Credit $ 325 $ 425
v3.19.2
Long-term debt (Narrative) (Details)
6 Months Ended
Jun. 30, 2019
USD ($)
Jun. 30, 2019
CAD ($)
Jun. 30, 2019
CAD ($)
Aug. 08, 2017
USD ($)
Aug. 08, 2017
CAD ($)
Jul. 12, 2012
USD ($)
Jul. 12, 2012
CAD ($)
Debt Instrument, Face Amount       $ 5,807,000 $ 7,600,000 $ 5,225,000 $ 6,838,000
Term loan facility [Member]              
Debt Instrument, Face Amount $ 3,060,000   $ 4,000,000        
Debt Instrument, Interest Rate Terms Bank's prime lending rate plus 2.50% Bank's prime lending rate plus 2.50%          
Debt Instrument, Periodic Payment $ 46,000 $ 62,000          
Secured Loan [Member]              
Debt Instrument, Face Amount $ 764,000   $ 1,000,000        
Debt Instrument, Interest Rate Terms bearing interest at prime plus 7.3% bearing interest at prime plus 7.3%          
Debt Instrument, Periodic Payment $ 13,000 $ 17,000          
v3.19.2
Convertible Debentures (Narrative) (Details)
6 Months Ended 12 Months Ended
Aug. 08, 2017
USD ($)
Aug. 08, 2017
CAD ($)
Jul. 12, 2012
USD ($)
$ / shares
shares
Jul. 12, 2012
CAD ($)
Jun. 30, 2019
USD ($)
Jun. 30, 2019
CAD ($)
Jun. 30, 2018
USD ($)
shares
Jun. 30, 2018
CAD ($)
shares
Dec. 31, 2018
USD ($)
May 08, 2018
$ / shares
Aug. 08, 2017
CAD ($)
Jul. 12, 2012
CAD ($)
$ / shares
shares
Net proceeds from issuance of convertible debentures $ 582,000 $ 762,000 $ 5,225,000 $ 6,838,000                
Aggregate principal amount $ 5,807,000   5,225,000               $ 7,600,000 $ 6,838,000
Proceeds from Convertible Debt, amount per instrument     $ 764 $ 1,000                
Debt Instrument, Interest Rate     8.00%                 8.00%
Debt Instrument, Convertible, Conversion Price | (per share)     $ 1.03             $ 0.80   $ 1.35
Debt Instrument, Convertible, Number of shares per instrument     740                 740
Transaction costs         $ 945,000 $ 1,237,000     $ 907,000      
Accretion Expense         160,000 213,000 $ 145,000 $ 185,000        
Interest on Convertible Debt, Net of Tax         $ 227,000 $ 303,000 $ 238,000 $ 304,000        
Interest paid by issuance of common shares (Shares)             307,069 307,069        
v3.19.2
Convertible Notes (Narrative) (Details)
3 Months Ended 6 Months Ended
May 08, 2018
USD ($)
$ / shares
shares
Jun. 30, 2019
USD ($)
Jun. 30, 2018
USD ($)
Jun. 30, 2019
USD ($)
shares
Jun. 30, 2018
USD ($)
Jul. 12, 2012
$ / shares
Jul. 12, 2012
$ / shares
Stock Issued During Period, Shares, Conversion of Units | shares 320            
Subscription Price of Units $ 10,000            
Stock Issued During Period, Value, Conversion of Units $ 3,200,000            
Warrants Issued During Period, Warrants | shares 7,690            
Interest Rate on Convertible Note 6.00%            
Debt Instrument, Convertible, Conversion Price | (per share) $ 0.80         $ 1.03 $ 1.35
Sale of Stock, Price Per Share | $ / shares $ 0.80            
Commission Paid to Agents $ 157,800            
Stock Issued During Period, Shares, Issued for Services | shares 243,275            
Equity Issuance, Per Share Amount | $ / shares $ 0.80            
Warrants Issued During Period, Value $ 50,000            
Financing Interest Expense       $ 48,000 $ 14,000    
Accretion Expense   $ 124,000 $ 94,000 $ 244,000 167,000    
Convertible Debt Securities [Member]              
Stock Issued During Period, Shares, Conversion of Convertible Securities | shares       7,940      
Stock Issued During Period, Value, Conversion of Convertible Securities       $ 5,000      
Interest Rate on Convertible Note       6.00%      
Convertible debt [Member]              
Transactions Costs of Convertible Notes       $ 111,000      
Accretion Expense       $ 86,000 $ 22,000    
v3.19.2
Additional Paid-In Capital (Narrative) (Details) - USD ($)
$ / shares in Units, $ in Thousands
1 Months Ended 3 Months Ended 6 Months Ended
Jun. 11, 2018
May 08, 2018
Apr. 10, 2018
Mar. 27, 2019
May 16, 2018
Jan. 16, 2018
Jun. 30, 2019
Jun. 30, 2018
Jun. 30, 2019
Jun. 30, 2018
Dec. 31, 2018
Stock Issued During Period, Value, Stock Options Exercised                 $ 21    
Stock Issued During Period, Shares, Issued for Services   243,275                  
Common Stock, Shares Authorized             200,000,000   200,000,000   200,000,000
Stock based compensation             $ 95 $ 73 $ 181 $ 123  
Stock options [Member]                      
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period                 50,000 25,000  
Stock Issued During Period, Value, Stock Options Exercised                 $ 21 $ 13  
Stock Issued During Period, Shares, Issued for Services                 50,000 25,000  
Stock Issued During Period, Value, Issued for Services                 $ 0 $ 0  
Employees and Directors [Member]                      
Stock based compensation                 157 119  
Additional Paid-In Capital [Member]                      
Stock Issued During Period, Value, Stock Options Exercised                 21 $ 13  
Class of Warrant or Right, Exercises in Period                   950,000  
Number of common shares exercised                   950,000  
Proceeds from Warrant Exercises                   $ 536  
Warrants exercised                   536  
2016 Stock Option Plan [Member] | Employee [Member] | Stock options [Member]                      
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross 800,000   275,000 100,000   100,000          
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price $ 0.76   $ 0.66 $ 0.69   $ 0.79          
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Weighted Average Remaining Contractual Term 2 years   2 years 2 years   2 years          
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage 25.00%   25.00% 25.00%   25.00%          
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period 10 years   10 years 10 years   10 years          
Stock Granted, Value, Share-based Compensation, Gross $ 334   $ 99 $ 40   $ 44          
Stock options granted to a consultant [Member]                      
Stock based compensation                 24 4  
Unrecognized stock-based compensation [Member]                      
Stock based compensation                 333 550  
Deferred Share Units [Member]                      
Deferred Share Units Grants in Period       271,740 287,355            
Salaries, Wages and Officers' Compensation       $ 132 $ 232       $ 117 $ 232  
v3.19.2
Revenues (Narrative) (Details)
$ in Thousands
6 Months Ended
Jun. 30, 2019
USD ($)
Transaction price allocated to the remaining performance obligation $ 1,525
Research and development milestone payments $ 4,560
Percentages of recognized in next three year 60.00%
Percentages of remaining recognized in next two years 40.00%
Commercial sales milestone payments $ 28,339
v3.19.2
Leases (Narrative) (Details) - Accounting Standards Update 2016-02 [Member]
$ in Thousands
6 Months Ended
Jun. 30, 2019
USD ($)
Leases [Line Items]  
Operating lease expense $ 76
Operating Lease, Payments $ 70
Weighted average remaining lease term 6 years 8 months 12 days
Weighted average discount rate for operating leases 10.00%
v3.19.2
Related Party Transactions (Narrative) (Details) - USD ($)
$ in Thousands
1 Months Ended 6 Months Ended
Mar. 27, 2019
May 16, 2018
Jun. 30, 2019
Jun. 30, 2018
Options granted to the Chief Executive Officer [Member]        
Salaries, Wages and Officers' Compensation     $ 40 $ 17
Options granted to the Chief Financial Officer [Member]        
Salaries, Wages and Officers' Compensation     27 7
Options granted to the former Vice President, Operations [Member]        
Salaries, Wages and Officers' Compensation     15 6
Options granted to the Vice-President, Research and Development [Member]        
Salaries, Wages and Officers' Compensation     17 6
Options granted to Vice- President, Business and Corporate Development [Member]        
Salaries, Wages and Officers' Compensation     17 23
Options granted to non-employee directors [Member]        
Salaries, Wages and Officers' Compensation     6
Director fees [Member]        
Salaries, Wages and Officers' Compensation     116 124
Deferred Share Units [Member]        
Salaries, Wages and Officers' Compensation $ 132 $ 232 $ 117 $ 232
v3.19.2
Subsequent Event (Narrative) (Details) - Jul. 09, 2019
USD ($)
CAD ($)
Subsequent Event [Member] | Laboval [Member]    
Forfeited Deposit $ 210,000 $ 275,000
v3.19.2
Schedule of Adoption of New Accounting Standards (Details) - USD ($)
$ in Thousands
Jun. 30, 2019
Dec. 31, 2018
Operating lease right-of-use assets $ 717  
Total assets 15,811 $ 20,018
Total current liabilities 2,395 2,722
Deferred lease obligations   49
Operating lease liability 588  
Total liabilities 10,393 10,031
Total shareholders' equity 5,418 9,987
Total liabilities and shareholders' equity $ 15,811 20,018
Adoption of ASC 842 [Member]    
Operating lease right-of-use assets   726
Total assets   20,744
Total current liabilities   2,849
Deferred lease obligations   0
Operating lease liability   599
Total liabilities   10,708
Total shareholders' equity   10,036
Total liabilities and shareholders' equity   20,744
Previously Reported [Member] | Adoption of ASC 842 [Member]    
Operating lease right-of-use assets   0
Total assets   20,018
Total current liabilities   2,722
Deferred lease obligations   49
Operating lease liability   0
Total liabilities   10,031
Total shareholders' equity   9,987
Total liabilities and shareholders' equity   20,018
Restatement Adjustment [Member] | Adoption of ASC 842 [Member]    
Operating lease right-of-use assets   726
Total assets   726
Total current liabilities   127
Deferred lease obligations   (49)
Operating lease liability   599
Total liabilities   677
Total shareholders' equity   49
Total liabilities and shareholders' equity   $ 726
v3.19.2
Schedule of Estimated Useful Lives of Leasehold Improvements and Equipment (Details)
6 Months Ended
Jun. 30, 2019
Laboratory and office equipment [Member]  
Property, Plant and Equipment, Depreciation Methods declining balance method
Property Plant and Equipment, Estimated Useful Live Depreciation Methods Percentage 20.00%
Computer equipment [Member]  
Property, Plant and Equipment, Depreciation Methods declining balance method
Property Plant and Equipment, Estimated Useful Live Depreciation Methods Percentage 30.00%
Leasehold improvements [Member]  
Property, Plant and Equipment, Depreciation Methods straight-line method
Property Plant And Equipment, Estimated Useful Live Depreciation Methods Description over the lease term
Manufacturing equipment [Member]  
Property, Plant and Equipment, Depreciation Methods straight-line method
Manufacturing equipment [Member] | Minimum [Member]  
Property, Plant and Equipment, Useful Life 5 years
Manufacturing equipment [Member] | Maximum [Member]  
Property, Plant and Equipment, Useful Life 10 years
v3.19.2
Schedule of Leasehold Improvements and Equipment (Details) - USD ($)
$ in Thousands
Jun. 30, 2019
Dec. 31, 2018
Cost $ 9,082  
Accumulated Depreciation 2,708  
Property, Plant and Equipment, Net Carrying Amount 6,374 $ 6,248
Manufacturing equipment [Member]    
Cost 4,378  
Accumulated Depreciation 731  
Property, Plant and Equipment, Net Carrying Amount 3,647 3,512
Laboratory and office equipment [Member]    
Cost 1,343  
Accumulated Depreciation 801  
Property, Plant and Equipment, Net Carrying Amount 542 562
Computer equipment [Member]    
Cost 124  
Accumulated Depreciation 76  
Property, Plant and Equipment, Net Carrying Amount 48 39
Leasehold improvements [Member]    
Cost 3,237  
Accumulated Depreciation 1,100  
Property, Plant and Equipment, Net Carrying Amount $ 2,137 $ 2,135
v3.19.2
Schedule of Term loan (Details) - USD ($)
$ in Thousands
Jun. 30, 2019
Dec. 31, 2018
Term loan facility $ 1,287 $ 1,502
Secured loan 280 330
Total debt 1,567 1,832
Less: current portion 740 692
Total long-term debt $ 827 $ 1,140
v3.19.2
Schedule of Term loan principal repayments (Details) - Jun. 30, 2019
$ in Thousands, $ in Thousands
USD ($)
CAD ($)
2019 $ 379 $ 497
2020 722 945
2021 $ 466 $ 610
v3.19.2
Schedule of Convertible Debt (Details)
$ in Thousands
6 Months Ended 12 Months Ended
Jun. 30, 2019
USD ($)
Jun. 30, 2019
CAD ($)
Dec. 31, 2018
USD ($)
Face value of the convertible debentures $ 5,791   $ 5,556
Transaction costs (945) $ (1,237,000) (907)
Accretion 578   398
Convertible debentures $ 5,424   $ 5,047
v3.19.2
Schedule of Capital Units (Details)
$ in Thousands
6 Months Ended
Jun. 30, 2019
USD ($)
Gross proceeds $ 3,200
Transaction costs 328
Net proceeds 2,872
Common stock [Member]  
Gross proceeds 1,627
Transaction costs 167
Net proceeds 1,460
Warrants [Member]  
Gross proceeds 487
Transaction costs 50
Net proceeds 437
Convertible debt [Member]  
Gross proceeds 1,086
Transaction costs 111
Net proceeds $ 975
v3.19.2
Schedule of Components of the Convertible Notes (Details) - USD ($)
$ in Thousands
Jun. 30, 2019
Dec. 31, 2018
Attributed value of net proceeds to convertible notes $ 975 $ 975
Accretion 184 98
Convertible notes $ 1,159 $ 1,073
v3.19.2
Schedule of Stock by Class (Details) - USD ($)
$ / shares in Units, $ in Thousands
Jun. 30, 2019
Dec. 31, 2018
Common Stock, Shares Authorized 200,000,000 200,000,000
Common Stock, Par or Stated Value Per Share $ 0.00001 $ 0.00001
Preferred Stock, Shares Authorized 20,000,000 20,000,000
Preferred Stock, Par or Stated Value Per Share $ 0.00001 $ 0.00001
Common Stock, Shares, Issued 93,527,473 93,477,473
Common Stock, Value, Issued $ 1 $ 1
v3.19.2
Schedule of Revenue disaggregated by revenue source (Details) - USD ($)
$ in Thousands
3 Months Ended 6 Months Ended
Jun. 30, 2019
Jun. 30, 2018
Jun. 30, 2019
Jun. 30, 2018
Revenue $ 197 $ 234 $ 613 $ 473
Research and development agreements [Member]        
Revenue     $ 613 $ 473
v3.19.2
Schedule of Revenue disaggregated by timing of recognition (Details) - USD ($)
$ in Thousands
3 Months Ended 6 Months Ended
Jun. 30, 2019
Jun. 30, 2018
Jun. 30, 2019
Jun. 30, 2018
Revenues, Total $ 197 $ 234 $ 613 $ 473
Product and services transferred at point in time [Member]        
Revenues, Total     371 0
Products and services transferred over time [Member]        
Revenues, Total     $ 242 $ 473
v3.19.2
Schedule of Revenue disaggregated by geography, based on the billing addresses of our customers (Details) - USD ($)
$ in Thousands
3 Months Ended 6 Months Ended
Jun. 30, 2019
Jun. 30, 2018
Jun. 30, 2019
Jun. 30, 2018
Revenues, Total $ 197 $ 234 $ 613 $ 473
Europe [Member]        
Revenues, Total     534 410
Canada [Member]        
Revenues, Total     $ 79 $ 63
v3.19.2
Schedule of Leases (Details)
$ in Thousands
Jun. 30, 2019
USD ($)
Leases [Abstract]  
2019 Remainder $ 74
2020 149
2021 151
2022 155
2023 156
2024 160
Thereafter 187
Total undiscounted lease payments 1,032
Less: Interest 309
Present value of lease liabilities 723
Current portion of operating lease liability 135
Operating lease liability $ 588