INTELGENX TECHNOLOGIES CORP., 10-K filed on 3/29/2018
Annual Report
v3.8.0.1
Document and Entity Information - USD ($)
12 Months Ended
Dec. 31, 2017
Mar. 29, 2018
Jun. 30, 2017
Document Type 10-K    
Amendment Flag false    
Document Period End Date Dec. 31, 2017    
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   67,731,467  
Entity Current Reporting Status Yes    
Entity Voluntary Filers No    
Entity Well Known Seasoned Issuer No    
Entity Public Float     $ 54,454,267
Document Fiscal Year Focus 2017    
Document Fiscal Period Focus FY    
v3.8.0.1
Consolidated Balance Sheets - USD ($)
$ in Thousands
Dec. 31, 2017
Dec. 31, 2016
Current    
Cash $ 1,591 $ 612
Short-term investments 3,313 3,884
Accounts receivable 623 1,044
Prepaid expenses 203 566
Investment tax credits receivable 314 246
Total current assets 6,044 6,352
Leasehold improvements and equipment, net 6,346 5,730
Security deposits 757 708
Total assets 13,147 12,790
Current    
Accounts payable and accrued liabilities 1,305 897
Current portion of long-term debt 772 704
Deferred revenue 0 3,634
Total current liabilities 2,077 5,235
Deferred lease obligations 50 45
Long-term debt 1,992 2,565
Convertible debentures 5,199 0
Total liabilities 9,318 7,845
Shareholders' equity    
Capital stock, common shares, $0.00001 par value; 100,000,000 shares authorized; 67,031,467 shares issued and outstanding (2016: 64,812,020 common shares) 1 1
Additional paid-in capital 25,253 23,700
Accumulated deficit (20,788) (17,737)
Accumulated other comprehensive loss (637) (1,019)
Total shareholders' equity 3,829 4,945
Total liabilities and shareholders' equity $ 13,147 $ 12,790
v3.8.0.1
Consolidated Balance Sheets (Parenthetical) - $ / shares
Dec. 31, 2017
Dec. 31, 2016
Common Stock, Par Value Per Share $ 0.00001 $ 0.00001
Common Stock, Shares Authorized 100,000,000 100,000,000
Common Stock, Shares, Issued 67,031,467 64,812,020
Common Stock, Shares, Outstanding 67,031,467 64,812,020
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Consolidated Statement of Shareholders' Equity - USD ($)
$ in Thousands
Capital Stock [Member]
Additional Paid-In Capital [Member]
Accumulated Deficit [Member]
Accumulated Other Comprehensive Loss [Member]
Total
Beginning Balance at Dec. 31, 2015 $ 1 $ 22,846 $ (16,557) $ (726) $ 5,564
Beginning Balance (Shares) at Dec. 31, 2015 63,615,255        
Other comprehensive loss       (293) (293)
Warrants exercised   596     596
Warrants exercised (Shares) 1,056,765        
Options exercised   63     63
Options exercised (Shares) 140,000        
Stock-based compensation   195     195
Net loss for the period     (1,180)   (1,180)
Ending Balance at Dec. 31, 2016 $ 1 23,700 (17,737) (1,019) 4,945
Ending Balance (Shares) at Dec. 31, 2016 64,812,020        
Other comprehensive loss       382 382
Warrants exercised   1,176     1,176
Warrants exercised (Shares) 2,084,447        
Options exercised   62     62
Options exercised (Shares) 135,000        
Stock-based compensation   315     315
Net loss for the period     (3,051)   (3,051)
Ending Balance at Dec. 31, 2017 $ 1 $ 25,253 $ (20,788) $ (637) $ 3,829
Ending Balance (Shares) at Dec. 31, 2017 67,031,467        
v3.8.0.1
Consolidated Statements of Comprehensive Loss - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Revenues    
License and other revenue $ 5,195 $ 4,179
Royalties 0 1,041
Total revenues 5,195 5,220
Expenses    
Cost of royalty, license and other revenue 373 319
Research and development expense 2,615 1,766
Selling, general and administrative expense 3,965 3,605
Depreciation of tangible assets 735 511
Total expenses 7,688 6,201
Operating loss (2,493) (981)
Interest income 11 4
Financing and interest expense (569) (203)
Net financing and interest expense (558) (199)
Loss before income taxes (3,051) (1,180)
Income taxes 0 0
Net loss (3,051) (1,180)
Other comprehensive income (loss)    
Change in fair value 71 0
Foreign currency translation adjustment 311 (293)
Total Other comprehensive income 382 (293)
Comprehensive loss $ (2,669) $ (1,473)
Basic and diluted:    
Weighted average number of shares outstanding 66,152,830 63,956,543
Basic and diluted loss per common share $ (0.04) $ (0.02)
v3.8.0.1
Consolidated Statements of Cash Flows - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Funds (used) provided - Operating activities    
Net loss $ (3,051) $ (1,180)
Depreciation of tangible assets 735 511
Stock-based compensation 315 195
Accretion expense 123 0
Total Adjustments (1,878) (474)
Changes in non-cash items related to operations:    
Accounts receivable 421 96
Prepaid expenses 363 (496)
Investment tax credits receivable (68) (149)
Security deposits 0 (202)
Accounts payable and accrued liabilities 408 (698)
Deferred revenue (3,634) 3,634
Deferred lease obligations 5 18
Net change in non-cash items related to operations (2,505) 2,203
Net cash (used in) provided by operating activities (4,383) 1,729
Financing activities    
Issuance of long-term debt 0 1,940
Repayment of long-term debt (708) (675)
Proceeds from exercise of warrants and stock options 1,238 659
Net proceeds from issuance of convertible debentures 5,469 0
Convertible debentures issuance costs (491) 0
Net cash provided by financing activities 5,508 1,924
Investing activities    
Additions to leasehold improvements and equipment (973) (2,326)
Acquisitions of short-term investments (3,952) (5,236)
Redemptions of short-term investments 4,718 1,652
Net cash used in investing activities (207) (5,910)
Increase (decrease) in cash 918 (2,257)
Effect of foreign exchange on cash 61 4
Cash    
Beginning of year 612 2,865
End of year $ 1,591 $ 612
v3.8.0.1
Basis of Presentation
12 Months Ended
Dec. 31, 2017
Basis of Presentation [Text Block]
1.

Basis of Presentation

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

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

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

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Going Concern
12 Months Ended
Dec. 31, 2017
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 December 31, 2017, the Company had cash and short-term investments totaling approximately $4,904. 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 pipline.

  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 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 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.

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Nature of Business
12 Months Ended
Dec. 31, 2017
Nature of Business [Text Block]
3.

Nature of Business

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

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

The Company’s product pipeline currently consists of 13 products in various stages of development from inception through commercialization, including products for the treatment of major depressive disorder, opioid dependence, hypertension, erectile dysfunction, migraine, schizophrenia, idiopathic pulmonary fibrosis, and pain management. Of the products currently under development, 9 utilize the VersaFilm™ technology, 3 utilize the VersaTab™ technology, and one utilizes the AdVersa™ technology.

v3.8.0.1
Adoption of New Accounting Standards
12 Months Ended
Dec. 31, 2017
Adoption of New Accounting Standards [Text Block]
4.

Adoption of New Accounting Standards

The FASB issued Update 2016-06, Derivatives and Hedging Contingent Put and Call Options in Debt Instruments, clarifying the requirements for assessing whether contingent call (put) options that can accelerate the payment of principal on debt instruments are clearly and closely related to their debt hosts. The amendments in this Update require an entity performing the assessment to assess the embedded call (put) options solely in accordance with the four-step decision sequence. For public business entities, the amendments in this Update are effective for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years. The adoption of this Update did not have a material effect on the Company’s financial position or results.

The FASB issued Update 2016-09, Compensation – Stock Compensation Improvements to Employee Share-Based Payment Accounting, simplifying several aspects of the accounting for share-based payment transactions, including income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. For public business entities, the amendments in this Update are effective for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years. The adoption of this Update did not have a material effect on the Company’s financial position or results.

The FASB issued Update 2015-11, Inventory: Simplifying the Measurement of Inventory, aligning the measurement of inventory in GAAP with the measurement of inventory in International Financial Reporting Standards (IFRS). The amendments in this Update state that an entity should measure inventory within the scope of this update at the lower of cost and net realizable value. Net realizable value is the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. For public business entities, the amendments in this Update are effective for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years. The adoption of this Update did not have a material effect on the Company’s financial position or results.

The FASB issued 2015-017, Income Taxes: Balance Sheet Classification of Deferred Taxes, which requires that deferred tax liabilities be classified as noncurrent in a classified statement of financial position. For public business entities, the amendments in this Update are effective for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years. The adoption of this Update did not have a material effect on the Company’s financial position or results.

v3.8.0.1
Summary of Significant Accounting Policies
12 Months Ended
Dec. 31, 2017
Summary of Significant Accounting Policies [Text Block]
5.

Summary of Significant Accounting Policies

Revenue Recognition

The Company enters into product development agreements with collaborators for the research and development and manufacturing of novel oral immediate-release and controlled-release products. The terms of these agreements may include non-refundable exclusivity, signing and licensing fees, funding for research, development and manufacturing, milestone payments and royalties on any product sales derived from collaborations. The Company typically receives non-refundable, up-front payments when licensing its intellectual property and know-how, which often occurs in conjunction with a research and development agreement. The Company analyses its multiple-element arrangements to determine whether the elements can be separated and accounted for individually as separate units of accounting.

The Company recognizes up-front license payments as revenue upon delivery of the license only if the license has stand-alone value and qualifies for treatment as a separate unit of accounting under multiple-element arrangement guidance. License fees with ongoing involvement or performance obligations that do not have standalone value are recorded as deferred revenue. For the year ended December 31, 2017, the Company recognized up-front licensing fees totaling $416 thousand compared to $1,546 thousand in 2016.

Revenues related to the research and development with corporate collaborators are recognized as other revenue as research and development services are performed. Under these agreements, the Company is required to perform research and development activities as specified in the agreement. For the year ended December 31, 2017, the Company recognized research and development revenues totaling $1,019 thousand compared to $434 thousand in 2016.

The Company recognizes revenue from milestones when milestones are achieved, in accordance with the terms of the specific agreements and when collection of the payment is reasonably assured. In addition, the performance criteria for the achievement of milestones are met if substantive effort was required to achieve the milestone and the amount of the milestone payment appears reasonably commensurate with the effort expended. Amounts received in advance of the recognition criteria being met, if any, are included in deferred income. For the year ended December 31, 2017, the Company recognized revenues as a result of sales milestones achieved under a licensing agreement totaling $Nil compared to $358 thousand in 2016.

IntelGenx has license agreements that specify that certain royalties are earned by the Company on sales of licensed products in the licensed territories. Royalty revenue is recognized on an accrual basis in accordance with the relevant license agreement. For the year ended December 31, 2017, the Company recognized royalty revenue earned under a licensing agreement totaling $Nil compared to $1,041 thousand in 2016.

Use of Estimates

The preparation of financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. The financial statements include estimates based on currently available information and management's judgment as to the outcome of future conditions and circumstances. Significant estimates in these financial statements include the useful lives and impairment of long-lived assets, stock-based compensation costs, and the investment tax credits receivable. Changes in the status of certain facts or circumstances could result in material changes to the estimates used in the preparation of the financial statements and actual results could differ from the estimates and assumptions.

Accounts Receivable

The Company accounts for trade receivables at original invoice amount less an estimate made for doubtful receivables based on a review of all outstanding amounts on a quarterly basis. Management determines the allowance for doubtful accounts by regularly evaluating individual customer receivables and considering a customer's financial condition, credit history and current economic conditions. The Company writes off trade receivables when they are deemed uncollectible and records recoveries of trade receivables previously written off when they receive them. Management has determined that no allowance for doubtful accounts is necessary in order to adequately cover exposure to loss in its December 31, 2017 accounts receivable (2016: $Nil). A bad debt expense in the amount of $29 (2016: $Nil) is recorded in the year ended December 31, 2017.

Investment Tax Credits

Investment tax credits relating to qualifying expenditures are recognized in the accounts at the time at which the related expenditures are incurred and there is reasonable assurance of their realization. Management has made estimates and assumptions in determining the expenditures eligible for investment tax credits claimed. Investment tax credits received in the year ended December 31, 2017 totaled $255 thousand (2016: $Nil).

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.

Security Deposits

Security deposits represent a refundable deposit paid to the landlord in accordance with the lease agreement and deposits held as guarantees by the Company’s lenders in accordance with the lending facilities. The deposits will be repaid to the Company at the end of the lease.

Impairment of Long-lived Assets

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

Deferred Lease Obligations

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

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

Foreign Currency Translation

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

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

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

Equity - at historical rates.

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

Income Taxes

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

Unrecognized Tax Benefits

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

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

Share-Based Payments

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

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

Loss Per Share

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

Fair Value Measurements

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

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

In determining the appropriate levels, the Company performs a detailed analysis of the assets and liabilities that are subject to ASC 820. At each reporting period, all assets and liabilities for which the fair value measurement is based on significant unobservable inputs are classified as Level 3. Short-term investments are classified as Level 1.

Fair Value of Financial Instruments

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

Recent Accounting Pronouncements

ASU 2017-09 – Stock Compensation (Topic 718) Scope of Modification Accounting

In May 2016, the FASB issued ASU 2017-09 which provides guidance on determining which changes to the terms and conditions of share-based payment awards require an entity to apply modification accounting under Topic 718. The statement is effective for annual periods beginning after December 15, 2017. Early adoption is permitted in any interim or annual period for which financial statements have not yet been issued. The Company is currently evaluating the impact of this Statement on its consolidated financial statements.

ASU 2017-04 – Intangibles – Goodwill and Other (Topic 350) Simplifying the Test for Goodwill Impairment

The FASB issued ASU 2017-04 which eliminates Step 2 from the goodwill impairment test and eliminates the requirements for any reporting unit with a zero or negative carrying amount to perform a qualitative assessment. These amendments are effective for a public business entity for fiscal years beginning after December 15, 2019. Early adoption is permitted in any interim or annual period and should be applied on a retrospective basis. The Company is currently evaluating the impact of this Statement on its consolidated financial statements.

ASU 2017-01 - Business Combinations (Topic 805) - Clarifying the Definition of a Business

The FASB issued ASU 2017-01 which clarifies the definition of a business and is intended to help companies evaluate whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. These amendments are effective for a public business entity for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. Early adoption is permitted under certain circumstances and should be applied on a prospective basis. The Company is currently evaluating the impact of this Statement on its consolidated financial statements.

ASU 2016-18 – Statement of Cash Flows (Topic 230) Restricted Cash

In November 2016, the FASB issued ASU 2016-18 which requires that the statement of cash flows explain the change during the period in the total cash, cash equivalents, and amounts generally described as restricted or restricted cash equivalents. The statement is effective for annual periods beginning after December 15, 2017, and interim periods within those annual periods. Early adoption is permitted in any interim or annual period and should be applied on a retrospective basis. The Company is currently evaluating the impact of this Statement on its consolidated financial statements.

ASU 2016-16 – Income Taxes (Topic 740) Intra-Entity Transfers of Assets Other Than Inventory

The FASB issued ASU 2016-16 and requires an entity to recognize the income tax consequences of an intra-entity transfer of an asset other than inventory when the transfer occurs. These amendments are effective for a public business entity for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. The amendments should be applied on a modified retrospective basis through a cumulative-effect adjustment directly to retained earnings as of the beginning of the period of adoption. The Company is currently evaluating the impact of this Statement on its consolidated financial statements.

ASU 2016-15 – Statement of Cash Flows (Topic 230) Classification of Certain Cash Receipts and Cash Payments

In August 2016, the FASB issued ASU 2016-15 which clarifies how certain cash receipts and payments are to be presented in the Statement of cash flows. The statement is effective for annual periods beginning after December 15, 2017, and interim periods within those annual periods. Early adoption is permitted in any interim or annual period, with any adjustments reflected as of the beginning of the fiscal year of adoption. The Company is currently evaluating the impact of this Statement on its consolidated financial statements.

ASU 2016-02: Leases (Topic 842) Section A

The FASB issued ASU 2016-02 to increase the transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements.

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 Company is currently evaluating the impact of this Statement on its consolidated financial statements.

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

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

  1.

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

     
  2.

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

     
  3.

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

     
  4.

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

For public business entities, the amendments in this Update are effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. The Company is currently evaluating the impact of this Statement on its consolidated financial statements.

Revenue from Contracts with Customers (Topic 606)

The FASB and IASB (the Boards) have issued converged standards on revenue recognition. ASU No. 2014-09 which 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.

In the year ended December 31, 2016, the FASB issued three new amendments related to Topic 606:

  1.

ASU 2016-08: Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net).

   

 

  2.

ASU 2016-10: Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing.

   

 

  3.

ASU 2016-11 Revenue Recognition (Topic 605) and Derivatives and Hedging (Topic 815): Rescission of SEC Guidance Because of Accounting Standards Updates 2014-09 and 2014-16 Pursuant to Staff Announcements at the March 3, 2016 EITF Meeting.

In the year ended December 31, 2017, the FASB issued a new amendment related to Topic 606:

  1.

ASU 2017-14: Revenue from Contracts with Customers (Topic 606). This amendment does not provide any changes to the previously issued ASU No. 2014-09 and is effective for the same reporting period which was deferred by one year in ASU 2015-14: Revenue From Contracts with Customers (Topic 606), Deferral of the Effective Date.

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

The new standards are required to be adopted using either a full-retrospective or a modified-retrospective approach. The Company will adopt these standards using the modified-retrospective approach beginning in 2018. The Company is in the process of completing the impact assessment on accounting policies and total revenues in the Consolidated Statements of Comprehensive Income (Loss) and disclosures.

v3.8.0.1
Short-term investments
12 Months Ended
Dec. 31, 2017
Short-term investments [Text Block]
6.

Short-term investments

As at December 31, 2017, short-term investments consisting of mutual funds (CAD$3,589 million) and term deposits ($450 thousand) are with a Canadian financial institution having a high credit rating. The term deposits have a maturity date of August 17, 2018, bear interest at 0.40% and are cashable at any time.

v3.8.0.1
Leasehold Improvements and Equipment
12 Months Ended
Dec. 31, 2017
Leasehold Improvements and Equipment [Text Block]
7.

Leasehold improvements and Equipment


                  2017     2016  
            Accumulated     Net Carrying     Net Carrying  
      Cost     Depreciation     Amount     Amount  
                           
  Manufacturing equipment $ 3,328   $ 375   $ 2,953   $ 2,429  
  Laboratory and office equipment   1,380     621     759     807  
  Computer equipment   102     58     44     23  
  Leasehold improvements   3,253     663     2,590     2,471  
                           
    $ 8,063   $ 1,717   $ 6,346   $ 5,730  

From the balance of manufacturing equipment, an amount of $822 thousand (2016: $125 thousand) represents assets which are not yet in service as at December 31, 2017.

v3.8.0.1
Bank Indebtedness
12 Months Ended
Dec. 31, 2017
Bank Indebtedness [Text Block]
8.

Bank Indebtedness

The Company's credit facility is subject to review annually and consists of an operating demand line of credit of up to CAD$250 thousand, corporate credits cards of up to CAD$75 and $60 thousand, and foreign exchange contracts limited to CAD$425 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 10) are secured by a first ranking movable hypothec on present and future movable property of the Company for an amount of CAD$4,250,000 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 December 31, 2017, the Company was not in compliance with its financial covenants and has not drawn on its credit facility. The Company has obtained a waiver from the lender.

v3.8.0.1
Deferred Revenue
12 Months Ended
Dec. 31, 2017
Deferred Revenue [Text Block]
9.

Deferred Revenue

On August 5, 2016, the Company sold its U.S. royalty on future sales of Forfivo XL ® to SWK Holdings Corporation for $6 million. Under the terms of the agreement, SWK paid IntelGenx $6 million at closing. In return for, (i) 100% of any and all royalties or similar royalty amounts received on or after April 1, 2016, (ii) 100% of the $2 million milestone payment upon Edgemont reaching annual net sales of $15 million, and (iii) 35% of all potential future milestone payments.

The payment received for the royalty on future sales in the amount of $6 milliion less the Q2- 2016 royalties recognized in the second quarter in the amount of $352 thousand was recognized in other revenue on a straight-line basis until December 31, 2017.

10% of the proceeds were paid to our former development partner, Cary Pharmaceuticals Inc. This amount was included in prepaid expenses less the portion expensed during the six-month period ended December 31, 2016. This expense was recognized as cost of royalty, license and other revenue on a straight-line basis until December 31, 2017.

v3.8.0.1
Long-term Debt
12 Months Ended
Dec. 31, 2017
Long-term Debt [Text Block]
10.

Long-term debt

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

      December 31, 2017     December 31, 2016  
        $       $  
               
               
  Term loan facility   2,233     2,636  
  Secured loan   531     633  
  Total debt   2,764     3,269  
               
  Less: current portion   772     704  
               
  Total long-term debt   1,992     2,565  

The Company’s term loan facility consists of a total of CAD$4 million bearing interest at the Bank’s prime lending rate plus 2.50%, with monthly principal repayments of CAD$62 thousand. The term loan is subject to the same security and financial covenants as the bank indebtedness (see note 8).

The secured loan has a principal balance authorized of CAD$1 million bearing interest at prime plus 7.3%, reimbursable in monthly principal payments of CAD$17 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. As at December 31, 2017, the Company was not in compliance with its financial covenants. The Company has obtained a waiver from the lender.

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

  2018 772 (CAD969)
  2019 753 (CAD945)
  2020 753 (CAD945)
  2021 486 (CAD610)
v3.8.0.1
Convertible Debentures
12 Months Ended
Dec. 31, 2017
Convertible Debentures [Text Block]
11.

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. Pursuant to the Offering, the Corporation issued an aggregate principal amount of CAD$6,838,000 of Debentures at a price of CAD$1,000 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 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 (the “Conversion Price”) per common share of the Corporation (“Share”), being a conversion rate of approximately 740 Shares per CAD$1,000 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.

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

The convertible debentures have been recorded as a liability. Total transactions costs in the amount of CAD$1,237,000 were recorded against the liability. The accretion expense for the period ended December 31, 2017 amounts to CAD$160,000.

The components of the convertible debentures as at December 31, 2017 are as follows:

      December 31, 2017  
        $  
         
  (in U.S. $ thousands)      
  Face value of convertible debentures $ 6,058  
  Transaction costs   (986 )
  Accretion   127  
         
  Convertible debentures $ 5,199  

Interest accrued as at December 31, 2017 on the convertible debentures in the amount of CAD$287 thousand was paid on December 29, 2017 and is recorded in financing and interest expense.

v3.8.0.1
Commitments
12 Months Ended
Dec. 31, 2017
Commitments [Text Block]
12.

Commitments

On April 24, 2015 the Company entered into an agreement to lease approximately 17,000 square feet in a property located at 6420 Abrams, St-Laurent, Québec. The Lease has a 10 year and 6 -month term commencing September 1, 2015. IntelGenx has retained two options to extend the lease, with each option being for an additional five years. Under the terms of the lease IntelGenx is required to pay base rent of approximately CAD$110 thousand (approximately $88 thousand) per year, which will increase at a rate of CAD$0.25 ($0.20) per square foot every two years.

On March 6, 2017 IntelGenx executed an agreement to lease approximately an additional 11,000 square feet in a property located at 6410 Abrams, St-Laurent, Quebec (the “Lease”). The lease has an 8 year and 5 -month term commencing on October 1, 2017 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$74 thousand (approximately $59 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 expand its manufacture of oral film VersaFilm TM .

The aggregate minimum rentals, exclusive of other occupancy charges, for property leases expiring in 2026, are approximately $1,301 thousand, as follows:

  2018 150
  2019 152
  2020 156
  2021 158
  2022 161
  Thereafter 524

The Company has initiated a project to expand the existing manufacturing facility. The Company has signed agreements in the amount of Euro 1,911 thousand with three suppliers with respect to equipment for solvent film manufacturing. As at December 31, 2017 an amount of Euro646 thousand has been paid with respect to these agreements.

v3.8.0.1
Capital Stock
12 Months Ended
Dec. 31, 2017
Capital Stock [Text Block]
13.

Capital Stock


      2017     2016  
  Authorized -            
  100,000,000 common shares of $0.00001 par value            
  20,000,000 preferred shares of $0.00001 par value            
  Issued -            
  67,031,467 (December 31, 2016: 64,812,020) common shares $ 1   $ 1  

Stock options

During the year ended December 31, 2017 a total of 135,000 stock options were exercised for 135,000 common shares having a par value of $0 thousand in aggregate, for cash consideration of $62 thousand, resulting in an increase in additional paid-in capital of $62 thousand.

During the year ended December 31, 2016 a total of 140,000 stock options were exercised for 140,000 common shares having a par value of $0 thousand in aggregate, for cash consideration of $63 thousand, resulting in an increase in additional paid-in capital of $63 thousand.

Stock-based compensation of $315 thousand and $195 thousand was recorded during the year ended December 31, 2017 and 2016 respectively. An amount of $309 thousand (2016 - $193 thousand) expensed relates to stock options granted to employees and directors and an amount of $6 thousand (2016- $2 thousand) relates to stock options granted to a consultant during the year ended December 31, 2017. As at December 31, 2017 the Company has $196 thousand (2016 - $320 thousand) of unrecognized stock-based compensation, of which $5 thousand (2016 – $11) relates to options granted to a consultant.

Warrants

In the year ended December 31, 2017 a total of 2,084,447 warrants were exercised for 2,084,447 common shares having a par value of $Nil in aggregate, for cash consideration of approximately $1,176 thousand, resulting in an increase in additional paid-in capital of approximately $1,176 thousand.

In the year ended December 31, 2016 a total of 1,056,765 warrants were exercised for 1,056,765 common shares having a par value of $Nil in aggregate, for cash consideration of approximately $596 thousand, resulting in an increase in additional paid-in capital of approximately $596 thousand.

v3.8.0.1
Additional Paid-In Capital
12 Months Ended
Dec. 31, 2017
Additional Paid-In Capital [Text Block]
14.

Additional Paid-In Capital

Stock Options

On May 9, 2016, the Board of Directors of the Company adopted the 2016 Stock Option Plan which amended and restated the 2006 Stock Option. As a result of the adoption of the 2016 Stock Option Plan, no additional options will be granted under the 2006 Stock Option Plan and all previously granted options will be governed by the 2016 Stock Option Plan. The 2016 Stock Option Plan permits the granting of options to officers, employees, directors and eligible consultants of the Company. A total of 6,361,525 shares of common stock were reserved for issuance under this plan, which includes stock options granted under the previous 2006 Stock Option Plan. Options may be granted under the 2016 Stock Option Plan on terms and at prices as determined by the Board except that the options cannot be granted at less than the market closing price of the common stock on the TSX-V. on the date prior to the grant. Each option will be exercisable after the period or periods specified in the option agreement, but no option may be exercised after the expiration of 10 years from the date of grant. The 2016 Stock Option Plan provides the Board with more flexibility when setting the vesting schedule for options which was otherwise fixed in the 2006 Stock Option Plan.

The fair value of options granted has been estimated according to the Black-Scholes valuation model and based on the weighted average of the following assumptions for options granted to employees and directors during the years ended:

      2017     2016  
  Exercise price   0.82     0.62  
  Expected volatility   60%     65%  
  Expected life   5.34 years     4.60 years  
  Risk-free interest rate   1.85%     1.39%  
  Dividend yield   nil     nil  

The weighted average fair value of the options granted to employees and directors during the year ended December 31, 2017 is $0.44 (2016 - $0.33) .

No options were granted to consultants during the year ended December 31, 2017. The weighted average fair value of the options granted to consultants during the year ended December 31, 2016 is $0.32.

Information with respect to employees and directors stock option activity for 2016 and 2017 is as follows:

            Weighted average  
      Number of options     exercise price  
              $  
               
  Outstanding – January 1, 2016   1,670,000     0.56  
               
  Granted   1,300,000     0.62  
  Forfeited   (50,000 )   (0.53 )
  Expired   (120,000 )   (0.43 )
  Exercised   (140,000 )   (0.45 )
               
  Outstanding – December 31, 2016   2,660,000     0.60  
               
  Granted   659,818     0.82  
  Forfeited   (170,000 )   (0.63 )
  Expired   (75,000 )   (0.65 )
  Exercised   (135,000 )   (0.46 )
               
  Outstanding – December 31, 2017   2,939,818     0.65  

Information with respect to consultant’s stock option activity for 2016 and 2017 is as follows:

            Weighted average  
      Number of options     exercise price  
              $  
  Outstanding – January 1, 2016   -     -  
               
  Granted   50,000     0.73  
  Outstanding – December 31, 2016 and 2017   50,000     0.73  

Details of stock options outstanding as at December 31, 2017 are as follows:

    Outstanding options                 Exercisable options  
                                           
                Weighted                 Weighted        
          Weighted average     average     Aggregate           average     Aggregate  
Exercise   Number of     remaining     exercise     intrinsic     Number of      exercise     intrinsic  
prices   options     contractual life     price     value     options     price     value  
$         (years)       $       $             $       $  
                                           
0.41   325,000     0.33     0.04           306,250     0.06        
0.52   125,000     0.04     0.02           125,000     0.03        
0.53   125,000     0.08     0.02           125,000     0.03        
0.58   710,000     0.58     0.14           710,000     0.18        
0.62   300,000     0.23     0.06           300,000     0.08        
0.73   600,000     1.66     0.15           300,000     0.10        
0.76   145,000     0.44     0.04           72,500     0.02        
0.77   359,818     1.16     0.09           -     -        
0.89   300,000     0.91     0.09           300,000     0.12        
    2,989,818     5.43     0.65     437,396     2,238,750     0.62     402,900  

Stock-based compensation expense recognized in 2017 with regards to the stock options was $315 thousand (2016: $195 thousand). As at December 31, 2017 the Company has $196 thousand (2016 - $320 thousand) of unrecognized stock-based compensation, of which $5 thousand (2016 – $11 thousand) relates to options granted to a consultant. The amount of $196 thousand will be recognized as an expense over a period of two years. A change in control of the Company due to acquisition would cause the vesting of the stock options granted to employees and directors to accelerate and would result in $196 thousand being charged to stock-based compensation expense.

Warrants

In the year ended December 31, 2017 a total of 2,084,447 warrants were exercised for 2,084,447 common shares having a par value of $Nil in aggregate, for cash consideration of approximately $1,176 thousand, resulting in an increase in additional paid-in capital of approximately $1,176 thousand.

In the year ended December 31, 2016 a total of 1,056,765 warrants were exercised for 1,056,765 common shares having a par value of $Nil in aggregate, for cash consideration of approximately $596 thousand, resulting in an increase in additional paid-in capital of approximately $596 thousand.

Information with respect to warrant activity for 2016 and 2017 is as follows:

      Number of     Weighted average  
      warrants     exercise price  
      (All Exercisable)       $  
  Outstanding – January 1, 2016   7,231,123     0.5646  
  Exercised   (1,056,765 )   (0.5646 )
  Outstanding - December 31, 2016   6,174,358     0.5646  
  Exercised   (2,084,447 )   (0.5646 )
  Expired   (19,009 )   (0.5646 )
  Outstanding - December 31, 2017   4,070,902     0.5646  
v3.8.0.1
Income Tax
12 Months Ended
Dec. 31, 2017
Income Tax [Text Block]
15.

Income Taxes

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

      2017        2016  
  Statutory income taxes $ (794 ) $ (305 )
  Net operating losses for which no tax benefits have been recorded   346     201  
  Deficiency of depreciation over capital cost allowance   (235 )   (206 )
  Non-deductible expenses   239     105  
  Undeducted research and development expenses   525     245  
  Investment tax credit   (81 )   (40 )
               
    $   -   $   -  

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

      2017     2016  
  Leasehold improvements and equipment $ 252   $ 201  
  Net operating losses carryforward   2,620     2,062  
  Undeducted research and development expenses   2,054     1,501  
  Non-refundable tax credits carryforward   1,553     1,190  
               
      6,479     4,954  
  Valuation allowance   (6,479 )   (4,954 )
    $   -   $   -  

As at December 31, 2017, management determined that enough uncertainty existed relative to the realization of deferred income tax asset balances to warrant the application of a full valuation allowance. Although management believes that certain of the net operating losses will be applied against earnings in 2018, management continues to believe that enough uncertainty exists relative to the realization of the remaining deferred income tax asset balances such that no recognition of deferred income tax assets is warranted.

There were Canadian and provincial net operating losses of approximately $9,560 thousand (2016: $7,585 thousand) and $10,052 thousand (2016: $7,763 thousand) respectively, that may be applied against earnings of future years. Utilization of the net operating losses is subject to significant limitations imposed by the change in control provisions. Canadian and provincial losses will be expiring between 2027 and 2037. A portion of the net operating losses may expire before they can be utilized.

As at December 31, 2017, the Company had non-refundable tax credits of $1,553 thousand (2016: $1,190 thousand) of which $8 thousand is expiring in 2026, $10 thousand is expiring in 2027, $180 thousand is expiring in 2028, $158 thousand is expiring in 2029, $134 thousand is expiring in 2030, $143 thousand is expiring in 2031, $179 thousand is expiring in 2032, $119 thousand is expiring in 2033, $90 thousand expiring in 2034, $106 thousand is expiring in 2035, $146 thousand expiring in 2036 and $280 thousand is expiring in 2037 and undeducted research and development expenses of $7,532 thousand (2016: $5,438 thousand) with no expiration date.

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

Unrecognized Tax Benefits

The Company does not have any unrecognized tax benefits.

Tax Years and Examination

The Company files tax returns in each jurisdiction in which it is registered to do business. For each jurisdiction a statute of limitations period exists. After a statute of limitations period expires, the respective tax authorities may no longer assess additional income tax for the expired period. Similarly, the Company is no longer eligible to file claims for refund for any tax that it may have overpaid. The following table summarizes the Company’s major tax jurisdictions and the tax years that remain subject to examination by these jurisdictions as of December 31, 2017:

Tax Jurisdictions   Tax Years
Federal - Canada   2014 and onward
Provincial - Quebec   2014 and onward
Federal - USA   2014 onward
v3.8.0.1
Statement of Cash Flows Information
12 Months Ended
Dec. 31, 2017
Statement of Cash Flows Information [Text Block]
16.

Statement of Cash Flows Information


  In US$ thousands   2017     2016  
               
  Additional Cash Flow Information:            
  Interest paid $ 408   $ 176  
v3.8.0.1
Related Party Transactions
12 Months Ended
Dec. 31, 2017
Related Party Transactions [Text Block]
17.

Related party transactions

Included in management salaries are $10 thousand (2016 - $2 thousand) for options granted to the Chief Executive Officer, $37 thousand (2016 - $60 thousand) for options granted to the Chief Financial Officer, $3 thousand (2016 - $12 thousand) for options granted to the former Vice President, Operations, $9 thousand (2016 - $5) for options granted to the Vice-President, Research and Development, $Nil (2016 - $21) for options granted to the former Vice President, Corporate Development, and $37 thousand for options granted to Vice-President, Business and Corporate Development (2016 – $8) under the 2006 or 2016 Stock Option Plans and $131 thousand (2016 - $52 thousand) for options granted to non-employee directors.

Included in general and administrative expenses are director fees of $256 thousand (2016: $184 thousand). During the year a non-employee director rendered consulting services amounting to $Nil (2016 - $14 thousand).

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

v3.8.0.1
Basic and Diluted Loss Per Common Share
12 Months Ended
Dec. 31, 2017
Basic and Diluted Loss Per Common Share [Text Block]
18.

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 year. Common equivalent shares from stock options, warrants and convertible debentures are also included in the diluted per share calculations unless the effect of the inclusion would be antidilutive.

v3.8.0.1
Subsequent events
12 Months Ended
Dec. 31, 2017
Subsequent events [Text Block]
19.

Subsequent events

On January 16, 2018, the Company granted 100,000 options to purchase common stock to an employee. The stock options are exercisable at $0.79 per share and vest over 2 years at 25% every six months.

Subsequent to the end of the year, total of 700,000 warrants were exercised for 700,000 common shares having a par value of $Nil in aggregate, for cash consideration of approximately $395 thousand.

v3.8.0.1
Summary of Significant Accounting Policies (Policies)
12 Months Ended
Dec. 31, 2017
Revenue Recognition [Policy Text Block]

Revenue Recognition

The Company enters into product development agreements with collaborators for the research and development and manufacturing of novel oral immediate-release and controlled-release products. The terms of these agreements may include non-refundable exclusivity, signing and licensing fees, funding for research, development and manufacturing, milestone payments and royalties on any product sales derived from collaborations. The Company typically receives non-refundable, up-front payments when licensing its intellectual property and know-how, which often occurs in conjunction with a research and development agreement. The Company analyses its multiple-element arrangements to determine whether the elements can be separated and accounted for individually as separate units of accounting.

The Company recognizes up-front license payments as revenue upon delivery of the license only if the license has stand-alone value and qualifies for treatment as a separate unit of accounting under multiple-element arrangement guidance. License fees with ongoing involvement or performance obligations that do not have standalone value are recorded as deferred revenue. For the year ended December 31, 2017, the Company recognized up-front licensing fees totaling $416 thousand compared to $1,546 thousand in 2016.

Revenues related to the research and development with corporate collaborators are recognized as other revenue as research and development services are performed. Under these agreements, the Company is required to perform research and development activities as specified in the agreement. For the year ended December 31, 2017, the Company recognized research and development revenues totaling $1,019 thousand compared to $434 thousand in 2016.

The Company recognizes revenue from milestones when milestones are achieved, in accordance with the terms of the specific agreements and when collection of the payment is reasonably assured. In addition, the performance criteria for the achievement of milestones are met if substantive effort was required to achieve the milestone and the amount of the milestone payment appears reasonably commensurate with the effort expended. Amounts received in advance of the recognition criteria being met, if any, are included in deferred income. For the year ended December 31, 2017, the Company recognized revenues as a result of sales milestones achieved under a licensing agreement totaling $Nil compared to $358 thousand in 2016.

IntelGenx has license agreements that specify that certain royalties are earned by the Company on sales of licensed products in the licensed territories. Royalty revenue is recognized on an accrual basis in accordance with the relevant license agreement. For the year ended December 31, 2017, the Company recognized royalty revenue earned under a licensing agreement totaling $Nil compared to $1,041 thousand in 2016.

Use of Estimates [Policy Text Block]

Use of Estimates

The preparation of financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. The financial statements include estimates based on currently available information and management's judgment as to the outcome of future conditions and circumstances. Significant estimates in these financial statements include the useful lives and impairment of long-lived assets, stock-based compensation costs, and the investment tax credits receivable. Changes in the status of certain facts or circumstances could result in material changes to the estimates used in the preparation of the financial statements and actual results could differ from the estimates and assumptions.

Accounts Receivable [Policy Text Block]

Accounts Receivable

The Company accounts for trade receivables at original invoice amount less an estimate made for doubtful receivables based on a review of all outstanding amounts on a quarterly basis. Management determines the allowance for doubtful accounts by regularly evaluating individual customer receivables and considering a customer's financial condition, credit history and current economic conditions. The Company writes off trade receivables when they are deemed uncollectible and records recoveries of trade receivables previously written off when they receive them. Management has determined that no allowance for doubtful accounts is necessary in order to adequately cover exposure to loss in its December 31, 2017 accounts receivable (2016: $Nil). A bad debt expense in the amount of $29 (2016: $Nil) is recorded in the year ended December 31, 2017.

Investment Tax Credits [Policy Text Block]

Investment Tax Credits

Investment tax credits relating to qualifying expenditures are recognized in the accounts at the time at which the related expenditures are incurred and there is reasonable assurance of their realization. Management has made estimates and assumptions in determining the expenditures eligible for investment tax credits claimed. Investment tax credits received in the year ended December 31, 2017 totaled $255 thousand (2016: $Nil).

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.

Security Deposits [Policy Text Block]

Security Deposits

Security deposits represent a refundable deposit paid to the landlord in accordance with the lease agreement and deposits held as guarantees by the Company’s lenders in accordance with the lending facilities. The deposits will be repaid to the Company at the end of the lease.

Impairment of Long-lived Assets [Policy Text Block]

Impairment of Long-lived Assets

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

Deferred Lease Obligations [Policy Text Block]

Deferred Lease Obligations

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

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

Foreign Currency Translation [Policy Text Block]

Foreign Currency Translation

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

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

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

Equity - at historical rates.

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

Income Taxes [Policy Text Block]

Income Taxes

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

Unrecognized Tax Benefits [Policy Text Block]

Unrecognized Tax Benefits

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

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

Share-Based Payments [Policy Text Block]

Share-Based Payments

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

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

Loss Per Share [Policy Text Block]

Loss Per Share

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

Fair Value Measurements [Policy Text Block]

Fair Value Measurements

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

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

In determining the appropriate levels, the Company performs a detailed analysis of the assets and liabilities that are subject to ASC 820. At each reporting period, all assets and liabilities for which the fair value measurement is based on significant unobservable inputs are classified as Level 3. Short-term investments are classified as Level 1.

Fair Value of Financial Instruments [Policy Text Block]

Fair Value of Financial Instruments

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

Recent Accounting Pronouncements [Policy Text Block]

Recent Accounting Pronouncements

ASU 2017-09 – Stock Compensation (Topic 718) Scope of Modification Accounting

In May 2016, the FASB issued ASU 2017-09 which provides guidance on determining which changes to the terms and conditions of share-based payment awards require an entity to apply modification accounting under Topic 718. The statement is effective for annual periods beginning after December 15, 2017. Early adoption is permitted in any interim or annual period for which financial statements have not yet been issued. The Company is currently evaluating the impact of this Statement on its consolidated financial statements.

ASU 2017-04 – Intangibles – Goodwill and Other (Topic 350) Simplifying the Test for Goodwill Impairment

The FASB issued ASU 2017-04 which eliminates Step 2 from the goodwill impairment test and eliminates the requirements for any reporting unit with a zero or negative carrying amount to perform a qualitative assessment. These amendments are effective for a public business entity for fiscal years beginning after December 15, 2019. Early adoption is permitted in any interim or annual period and should be applied on a retrospective basis. The Company is currently evaluating the impact of this Statement on its consolidated financial statements.

ASU 2017-01 - Business Combinations (Topic 805) - Clarifying the Definition of a Business

The FASB issued ASU 2017-01 which clarifies the definition of a business and is intended to help companies evaluate whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. These amendments are effective for a public business entity for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. Early adoption is permitted under certain circumstances and should be applied on a prospective basis. The Company is currently evaluating the impact of this Statement on its consolidated financial statements.

ASU 2016-18 – Statement of Cash Flows (Topic 230) Restricted Cash

In November 2016, the FASB issued ASU 2016-18 which requires that the statement of cash flows explain the change during the period in the total cash, cash equivalents, and amounts generally described as restricted or restricted cash equivalents. The statement is effective for annual periods beginning after December 15, 2017, and interim periods within those annual periods. Early adoption is permitted in any interim or annual period and should be applied on a retrospective basis. The Company is currently evaluating the impact of this Statement on its consolidated financial statements.

ASU 2016-16 – Income Taxes (Topic 740) Intra-Entity Transfers of Assets Other Than Inventory

The FASB issued ASU 2016-16 and requires an entity to recognize the income tax consequences of an intra-entity transfer of an asset other than inventory when the transfer occurs. These amendments are effective for a public business entity for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. The amendments should be applied on a modified retrospective basis through a cumulative-effect adjustment directly to retained earnings as of the beginning of the period of adoption. The Company is currently evaluating the impact of this Statement on its consolidated financial statements.

ASU 2016-15 – Statement of Cash Flows (Topic 230) Classification of Certain Cash Receipts and Cash Payments

In August 2016, the FASB issued ASU 2016-15 which clarifies how certain cash receipts and payments are to be presented in the Statement of cash flows. The statement is effective for annual periods beginning after December 15, 2017, and interim periods within those annual periods. Early adoption is permitted in any interim or annual period, with any adjustments reflected as of the beginning of the fiscal year of adoption. The Company is currently evaluating the impact of this Statement on its consolidated financial statements.

ASU 2016-02: Leases (Topic 842) Section A

The FASB issued ASU 2016-02 to increase the transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements.

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 Company is currently evaluating the impact of this Statement on its consolidated financial statements.

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

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

  1.

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

     
  2.

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

     
  3.

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

     
  4.

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

For public business entities, the amendments in this Update are effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. The Company is currently evaluating the impact of this Statement on its consolidated financial statements.

Revenue from Contracts with Customers (Topic 606)

The FASB and IASB (the Boards) have issued converged standards on revenue recognition. ASU No. 2014-09 which 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.

In the year ended December 31, 2016, the FASB issued three new amendments related to Topic 606:

  1.

ASU 2016-08: Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net).

   

 

  2.

ASU 2016-10: Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing.

   

 

  3.

ASU 2016-11 Revenue Recognition (Topic 605) and Derivatives and Hedging (Topic 815): Rescission of SEC Guidance Because of Accounting Standards Updates 2014-09 and 2014-16 Pursuant to Staff Announcements at the March 3, 2016 EITF Meeting.

In the year ended December 31, 2017, the FASB issued a new amendment related to Topic 606:

  1.

ASU 2017-14: Revenue from Contracts with Customers (Topic 606). This amendment does not provide any changes to the previously issued ASU No. 2014-09 and is effective for the same reporting period which was deferred by one year in ASU 2015-14: Revenue From Contracts with Customers (Topic 606), Deferral of the Effective Date.

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

The new standards are required to be adopted using either a full-retrospective or a modified-retrospective approach. The Company will adopt these standards using the modified-retrospective approach beginning in 2018. The Company is in the process of completing the impact assessment on accounting policies and total revenues in the Consolidated Statements of Comprehensive Income (Loss) and disclosures.

v3.8.0.1
Summary of Significant Accounting Policies (Tables)
12 Months Ended
Dec. 31, 2017
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
v3.8.0.1
Leasehold Improvements and Equipment (Tables)
12 Months Ended
Dec. 31, 2017
Schedule of Leasehold Improvements and Equipment [Table Text Block]
                  2017     2016  
            Accumulated     Net Carrying     Net Carrying  
      Cost     Depreciation     Amount     Amount  
                           
  Manufacturing equipment $ 3,328   $ 375   $ 2,953   $ 2,429  
  Laboratory and office equipment   1,380     621     759     807  
  Computer equipment   102     58     44     23  
  Leasehold improvements   3,253     663     2,590     2,471  
                           
    $ 8,063   $ 1,717   $ 6,346   $ 5,730  
v3.8.0.1
Long-term Debt (Tables)
12 Months Ended
Dec. 31, 2017
Term loan [Table Text Block]
      December 31, 2017     December 31, 2016  
        $       $  
               
               
  Term loan facility   2,233     2,636  
  Secured loan   531     633  
  Total debt   2,764     3,269  
               
  Less: current portion   772     704  
               
  Total long-term debt   1,992     2,565  
Term loan principal repayments [Table Text Block]
  2018 772 (CAD969)
  2019 753 (CAD945)
  2020 753 (CAD945)
  2021 486 (CAD610)
v3.8.0.1
Convertible Debentures (Tables)
12 Months Ended
Dec. 31, 2017
Schedule of Convertible Debt [Table Text Block]
      December 31, 2017  
        $  
         
  (in U.S. $ thousands)      
  Face value of convertible debentures $ 6,058  
  Transaction costs   (986 )
  Accretion   127  
         
  Convertible debentures $ 5,199  
v3.8.0.1
Commitments (Tables)
12 Months Ended
Dec. 31, 2017
Schedule of future minimum payments under operating leases [Table Text Block]
  2018 150
  2019 152
  2020 156
  2021 158
  2022 161
  Thereafter 524
v3.8.0.1
Capital Stock (Tables)
12 Months Ended
Dec. 31, 2017
Schedule of Stock by Class [Table Text Block]
      2017     2016  
  Authorized -            
  100,000,000 common shares of $0.00001 par value            
  20,000,000 preferred shares of $0.00001 par value            
  Issued -            
  67,031,467 (December 31, 2016: 64,812,020) common shares $ 1   $ 1  
v3.8.0.1
Additional Paid-In Capital (Tables)
12 Months Ended
Dec. 31, 2017
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block]
      2017     2016  
  Exercise price   0.82     0.62  
  Expected volatility   60%     65%  
  Expected life   5.34 years     4.60 years  
  Risk-free interest rate   1.85%     1.39%  
  Dividend yield   nil     nil  
Schedule of Stock Option Activity to Employees and Directors [Table Text Block]
            Weighted average  
      Number of options     exercise price  
              $  
               
  Outstanding – January 1, 2016   1,670,000     0.56  
               
  Granted   1,300,000     0.62  
  Forfeited   (50,000 )   (0.53 )
  Expired   (120,000 )   (0.43 )
  Exercised   (140,000 )   (0.45 )
               
  Outstanding – December 31, 2016   2,660,000     0.60  
               
  Granted   659,818     0.82  
  Forfeited   (170,000 )   (0.63 )
  Expired   (75,000 )   (0.65 )
  Exercised   (135,000 )   (0.46 )
               
  Outstanding – December 31, 2017   2,939,818     0.65  
Schedule of Stock Option Activity to Consultants [Table Text Block]
            Weighted average  
      Number of options     exercise price  
              $  
  Outstanding – January 1, 2016   -     -  
               
  Granted   50,000     0.73  
  Outstanding – December 31, 2016 and 2017   50,000     0.73  
Schedule of Share-based Compensation, Stock Options, and Warrants or Rights Activity [Table Text Block]
    Outstanding options                 Exercisable options  
                                           
                Weighted                 Weighted        
          Weighted average     average     Aggregate           average     Aggregate  
Exercise   Number of     remaining     exercise     intrinsic     Number of      exercise     intrinsic  
prices   options     contractual life     price     value     options     price     value  
$         (years)       $       $             $       $  
                                           
0.41   325,000     0.33     0.04           306,250     0.06        
0.52   125,000     0.04     0.02           125,000     0.03        
0.53   125,000     0.08     0.02           125,000     0.03        
0.58   710,000     0.58     0.14           710,000     0.18        
0.62   300,000     0.23     0.06           300,000     0.08        
0.73   600,000     1.66     0.15           300,000     0.10        
0.76   145,000     0.44     0.04           72,500     0.02        
0.77   359,818     1.16     0.09           -     -        
0.89   300,000     0.91     0.09           300,000     0.12        
    2,989,818     5.43     0.65     437,396     2,238,750     0.62     402,900  
Schedule of Stockholders' Equity Note, Warrants or Rights, Activity [Table Text Block]
      Number of     Weighted average  
      warrants     exercise price  
      (All Exercisable)       $  
  Outstanding – January 1, 2016   7,231,123     0.5646  
  Exercised   (1,056,765 )   (0.5646 )
  Outstanding - December 31, 2016   6,174,358     0.5646  
  Exercised   (2,084,447 )   (0.5646 )
  Expired   (19,009 )   (0.5646 )
  Outstanding - December 31, 2017   4,070,902     0.5646  
v3.8.0.1
Income Tax (Tables)
12 Months Ended
Dec. 31, 2017
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block]
      2017        2016  
  Statutory income taxes $ (794 ) $ (305 )
  Net operating losses for which no tax benefits have been recorded   346     201  
  Deficiency of depreciation over capital cost allowance   (235 )   (206 )
  Non-deductible expenses   239     105  
  Undeducted research and development expenses   525     245  
  Investment tax credit   (81 )   (40 )
               
    $   -   $   -  
Schedule of Deferred Tax Assets and Liabilities [Table Text Block]
      2017     2016  
  Leasehold improvements and equipment $ 252   $ 201  
  Net operating losses carryforward   2,620     2,062  
  Undeducted research and development expenses   2,054     1,501  
  Non-refundable tax credits carryforward   1,553     1,190  
               
      6,479     4,954  
  Valuation allowance   (6,479 )   (4,954 )
    $   -   $   -  
Schedule of Tax years and Jurisdictions [Table Text Block]
Tax Jurisdictions   Tax Years
Federal - Canada   2014 and onward
Provincial - Quebec   2014 and onward
Federal - USA   2014 onward
v3.8.0.1
Statement of Cash Flows Information (Tables)
12 Months Ended
Dec. 31, 2017
Schedule of Cash Flow, Supplemental Disclosures [Table Text Block]
  In US$ thousands   2017     2016  
               
  Additional Cash Flow Information:            
  Interest paid $ 408   $ 176  
v3.8.0.1
Going Concern (Narrative) (Details)
12 Months Ended
Dec. 31, 2017
USD ($)
Going Concern 1 $ 4,904
v3.8.0.1
Summary of Significant Accounting Policies (Narrative) (Details)
12 Months Ended
Dec. 31, 2017
USD ($)
Summary Of Significant Accounting Policies 1 $ 416,000
Summary Of Significant Accounting Policies 2 1,546,000
Summary Of Significant Accounting Policies 3 1,019,000
Summary Of Significant Accounting Policies 4 434,000
Summary Of Significant Accounting Policies 5 0
Summary Of Significant Accounting Policies 6 358,000
Summary Of Significant Accounting Policies 7 0
Summary Of Significant Accounting Policies 8 1,041,000
Summary Of Significant Accounting Policies 9 0
Summary Of Significant Accounting Policies 10 29
Summary Of Significant Accounting Policies 11 0
Summary Of Significant Accounting Policies 12 255,000
Summary Of Significant Accounting Policies 13 $ 0
Summary Of Significant Accounting Policies 14 50.00%
v3.8.0.1
Short-term investments (Narrative) (Details)
$ in Thousands, $ in Millions
12 Months Ended
Dec. 31, 2017
USD ($)
Dec. 31, 2017
CAD ($)
Short-term Investments 1   $ 3,589
Short-term Investments 2 $ 450  
Short-term Investments 3 0.40% 0.40%
v3.8.0.1
Leasehold Improvements and Equipment (Narrative) (Details)
$ in Thousands
12 Months Ended
Dec. 31, 2017
USD ($)
Leasehold Improvements And Equipment 1 $ 822
Leasehold Improvements And Equipment 2 $ 125
v3.8.0.1
Bank Indebtedness (Narrative) (Details)
$ in Thousands
12 Months Ended
Dec. 31, 2017
USD ($)
Dec. 31, 2017
CAD ($)
Bank Indebtedness 1   $ 250,000
Bank Indebtedness 2   75
Bank Indebtedness 3 $ 60  
Bank Indebtedness 4   $ 425,000
Bank Indebtedness 5 2.00% 2.00%
Bank Indebtedness 6   $ 4,250,000
Bank Indebtedness 7 20.00% 20.00%
Bank Indebtedness 8 50.00% 50.00%
v3.8.0.1
Deferred Revenue (Narrative) (Details)
12 Months Ended
Dec. 31, 2017
USD ($)
Deferred Revenue 1 $ 6,000,000
Deferred Revenue 2 $ 6,000,000
Deferred Revenue 3 100.00%
Deferred Revenue 4 100.00%
Deferred Revenue 5 $ 2,000,000
Deferred Revenue 6 $ 15,000,000
Deferred Revenue 7 35.00%
Deferred Revenue 8 $ 6
Deferred Revenue 9 2,016
Deferred Revenue 10 $ 352,000
Deferred Revenue 11 10.00%
v3.8.0.1
Long-term Debt (Narrative) (Details)
$ in Thousands
12 Months Ended
Dec. 31, 2017
CAD ($)
Long-term Debt 1 $ 4,000
Long-term Debt 2 2.50%
Long-term Debt 3 $ 62
Long-term Debt 4 $ 1,000
Long-term Debt 5 7.30%
Long-term Debt 6 $ 17
v3.8.0.1
Convertible Debentures (Narrative) (Details)
12 Months Ended
Dec. 31, 2017
CAD ($)
Convertible Debentures 1 $ 6,838,000
Convertible Debentures 2 6,838,000
Convertible Debentures 3 $ 1,000
Convertible Debentures 4 8.00%
Convertible Debentures 5 $ 1.35
Convertible Debentures 6 740
Convertible Debentures 7 $ 1,000
Convertible Debentures 8 762,000
Convertible Debentures 9 6,838,000
Convertible Debentures 10 7,600,000
Convertible Debentures 11 1,000
Convertible Debentures 12 1,237,000
Convertible Debentures 13 160,000
Convertible Debentures 14 $ 287,000
v3.8.0.1
Commitments (Narrative) (Details) - 12 months ended Dec. 31, 2017
USD ($)
yr
CAD ($)
yr
Commitments 1 | yr 10 10
Commitments 2 6 6
Commitments 3   $ 110,000
Commitments 4 $ 88,000  
Commitments 5   $ 0.25
Commitments 6 $ 0.20  
Commitments 7 11,000 11,000
Commitments 8 | yr 8 8
Commitments 9 5 5
Commitments 10   $ 74,000
Commitments 11 $ 59,000  
Commitments 12   $ 0.25
Commitments 13 0.20  
Commitments 14 $ 1,301,000  
Commitments 15 1,911,000 1,911,000
v3.8.0.1
Capital Stock (Narrative) (Details)
12 Months Ended
Dec. 31, 2017
USD ($)
shares
Capital Stock 1 | shares 135,000
Capital Stock 2 | shares 135,000
Capital Stock 3 $ 0
Capital Stock 4 62,000
Capital Stock 5 $ 62,000
Capital Stock 6 | shares 140,000
Capital Stock 7 | shares 140,000
Capital Stock 8 $ 0
Capital Stock 9 63,000
Capital Stock 10 63,000
Capital Stock 11 315,000
Capital Stock 12 195,000
Capital Stock 13 309,000
Capital Stock 14 193,000
Capital Stock 15 6,000
Capital Stock 16 2,000
Capital Stock 17 196,000
Capital Stock 18 320,000
Capital Stock 19 5,000
Capital Stock 20 $ 11
Capital Stock 21 | shares 2,084,447
Capital Stock 22 | shares 2,084,447
Capital Stock 23 $ 0
Capital Stock 24 1,176,000
Capital Stock 25 $ 1,176,000
Capital Stock 26 | shares 1,056,765
Capital Stock 27 | shares 1,056,765
Capital Stock 28 $ 0
Capital Stock 29 596,000
Capital Stock 30 $ 596,000
v3.8.0.1
Additional Paid-In Capital (Narrative) (Details)
12 Months Ended
Dec. 31, 2017
USD ($)
yr
shares
Additional Paid-in Capital 1 | shares 6,361,525
Additional Paid-in Capital 2 | yr 10
Additional Paid-in Capital 3 $ 0.44
Additional Paid-in Capital 4 0.33
Additional Paid-in Capital 5 0.32
Additional Paid-in Capital 6 315,000
Additional Paid-in Capital 7 195,000
Additional Paid-in Capital 8 196,000
Additional Paid-in Capital 9 320,000
Additional Paid-in Capital 10 5,000
Additional Paid-in Capital 11 11,000
Additional Paid-in Capital 12 196,000
Additional Paid-in Capital 13 $ 196,000
Additional Paid-in Capital 14 | shares 2,084,447
Additional Paid-in Capital 15 | shares 2,084,447
Additional Paid-in Capital 16 $ 0
Additional Paid-in Capital 17 1,176,000
Additional Paid-in Capital 18 $ 1,176,000
Additional Paid-in Capital 19 | shares 1,056,765
Additional Paid-in Capital 20 | shares 1,056,765
Additional Paid-in Capital 21 $ 0
Additional Paid-in Capital 22 596,000
Additional Paid-in Capital 23 $ 596,000
v3.8.0.1
Income Tax (Narrative) (Details)
$ in Thousands
12 Months Ended
Dec. 31, 2017
USD ($)
Income Tax 1 $ 9,560
Income Tax 2 7,585
Income Tax 3 10,052
Income Tax 4 7,763
Income Tax 5 1,553
Income Tax 6 1,190
Income Tax 7 8
Income Tax 8 10
Income Tax 9 180
Income Tax 10 158
Income Tax 11 134
Income Tax 12 143
Income Tax 13 179
Income Tax 14 119
Income Tax 15 90
Income Tax 16 106
Income Tax 17 146
Income Tax 18 280
Income Tax 19 7,532
Income Tax 20 $ 5,438
v3.8.0.1
Related Party Transactions (Narrative) (Details)
12 Months Ended
Dec. 31, 2017
USD ($)
Related Party Transactions 1 $ 10,000
Related Party Transactions 2 2,000
Related Party Transactions 3 37,000
Related Party Transactions 4 60,000
Related Party Transactions 5 3,000
Related Party Transactions 6 12,000
Related Party Transactions 7 9,000
Related Party Transactions 8 5
Related Party Transactions 9 0
Related Party Transactions 10 21
Related Party Transactions 11 37,000
Related Party Transactions 12 8
Related Party Transactions 13 131,000
Related Party Transactions 14 52,000
Related Party Transactions 15 256,000
Related Party Transactions 16 184,000
Related Party Transactions 17 0
Related Party Transactions 18 $ 14,000