INTELGENX TECHNOLOGIES CORP., 10-K filed on 3/22/2019
Annual Report
v3.19.1
Document and Entity Information - USD ($)
12 Months Ended
Dec. 31, 2018
Mar. 22, 2019
Jun. 30, 2018
Document Type 10-K    
Amendment Flag false    
Document Period End Date Dec. 31, 2018    
Trading Symbol igxt    
Entity Registrant Name IntelGenx Technologies Corp.    
Entity Central Index Key 0001098880    
Current Fiscal Year End Date --12-31    
Entity Filer Category Non-accelerated Filer    
Entity Common Stock, Shares Outstanding   93,527,474  
Entity Current Reporting Status Yes    
Entity Voluntary Filers No    
Entity Well Known Seasoned Issuer No    
Entity Public Float     $ 46,205,996
Document Fiscal Year Focus 2018    
Document Fiscal Period Focus FY    
Entity Shell Company false    
Entity Small Business true    
Entity Emerging Growth Company false    
Entity Ex Transition Period false    
v3.19.1
Consolidated Balance Sheets - USD ($)
$ in Thousands
Dec. 31, 2018
Dec. 31, 2017
Current    
Cash $ 6,815 $ 1,591
Short-term investments 4,180 3,313
Accounts receivable 815 623
Prepaid expenses 462 203
Investment tax credits receivable 416 314
Inventory 375  
Total current assets 13,063 6,044
Leasehold improvements and equipment, net 6,248 6,346
Security deposits 707 757
Total assets 20,018 13,147
Current    
Accounts payable and accrued liabilities 2,030 1,305
Current portion of long-term debt 692 772
Total current liabilities 2,722 2,077
Deferred lease obligations 49 50
Long-term debt 1,140 1,992
Convertible debentures 5,047 5,199
Convertible notes 1,073  
Total liabilities 10,031 9,318
Commitments
Subsequent event 0 0
Shareholders' equity    
Capital stock, common shares, $0.00001 par value; 200,000,000 shares authorized; 93,477,473 shares issued and outstanding (2017: 67,031,467 common shares) 1 1
Additional paid-in capital 42,048 25,253
Accumulated deficit (30,896) (20,788)
Accumulated other comprehensive loss (1,166) (637)
Total shareholders' equity 9,987 3,829
Total liabilities and shareholders' equity $ 20,018 $ 13,147
v3.19.1
Consolidated Balance Sheets (Parenthetical) - $ / shares
Dec. 31, 2018
Dec. 31, 2017
Common Stock, Par Value Per Share $ 0.00001 $ 0.00001
Common Stock, Shares Authorized 200,000,000 200,000,000
Common Stock, Shares, Issued 93,477,473 67,031,467
Common Stock, Shares, Outstanding 93,477,473 67,031,467
v3.19.1
Consolidated Statement of Shareholders' Equity
$ in Thousands, $ in Thousands
Common Stock [Member]
USD ($)
shares
Additional Paid-In Capital [Member]
USD ($)
shares
Accumulated Deficit [Member]
USD ($)
Accumulated Other Comprehensive Loss [Member]
USD ($)
USD ($)
shares
CAD ($)
shares
Beginning Balance at Dec. 31, 2016 $ 1 $ 23,700 $ (17,737) $ (1,019) $ 4,945  
Beginning Balance (Shares) at Dec. 31, 2016 | shares 64,812,020          
Other comprehensive loss (income)       382 382  
Warrants exercised   1,176     1,176  
Warrants exercised (Shares) | shares 2,084,447          
Options exercised   $ 62     62  
Options exercised (in shares) | shares 135,000 135,000        
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 | shares 67,031,467          
Other comprehensive loss (income)       (529) (529)  
Common stock issued, net of transaction costs of $1,906   11,647     11,647  
Common stock issued, net of transaction costs of $1,906 (Shares) | shares 22,017,295          
Warrants issued, net of transaction costs of $322   1,873     1,873  
Agents' warrants issued   330     330  
Interest paid by issuance of common shares   231     $ 231 $ 304
Interest paid by issuance of common shares (Shares) | shares 307,069       307,069 307,069
Conversion of convertible debentures   16     $ 16  
Conversion of convertible debentures (in shares) | shares 17,036          
Warrants exercised   2,295     2,295  
Warrants exercised (Shares) | shares 4,044,606          
Options exercised   $ 33     33  
Options exercised (in shares) | shares 60,000 60,000        
Stock-based compensation   $ 370     370  
Net loss for the period     (10,108)   (10,108)  
Ending Balance at Dec. 31, 2018 $ 1 $ 42,048 $ (30,896) $ (1,166) $ 9,987  
Ending Balance (Shares) at Dec. 31, 2018 | shares 93,477,473          
v3.19.1
Consolidated Statement of Comprehensive Income (Loss) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2018
Dec. 31, 2017
Revenues    
Revenues $ 1,824 $ 5,195
Expenses    
Cost of royalty, license and other revenue   373
Research and development expense 5,104 2,615
Selling, general and administrative expense 4,999 3,965
Depreciation of tangible assets 719 735
Total expenses 10,822 7,688
Operating loss (8,998) (2,493)
Interest income 11 11
Financing and interest expense (1,121) (569)
Net financing and interest expense (1,110) (558)
Loss before income taxes (10,108) (3,051)
Income taxes (note 16) 0 0
Net loss (10,108) (3,051)
Other comprehensive income (loss)    
Change in fair value 3 71
Foreign currency translation adjustment (532) 311
Total other comprehensive income (loss) (529) 382
Comprehensive loss $ (10,637) $ (2,669)
Basic and diluted:    
Weighted average number of shares outstanding (in shares) 74,121,922 66,152,830
Basic and diluted loss per common share (in dollars per share) $ (0.14) $ (0.04)
v3.19.1
Consolidated Statement of Cash Flows
$ in Thousands, $ in Thousands
12 Months Ended
Dec. 31, 2018
USD ($)
Dec. 31, 2017
USD ($)
Funds (used) provided - Operating activities    
Net loss $ (10,108) $ (3,051)
Depreciation of tangible assets 719 735
Stock-based compensation 370 315
Accretion expense 396 123
DSU expense 160  
Interest paid by issuance of common shares 231  
Conversion of convertible debentures (16)  
Total Adjustment (8,248) (1,878)
Changes in non-cash items related to operations:    
Accounts receivable (192) 421
Prepaid expenses (259) 363
Investment tax credits receivable (102) (68)
Inventory (375)  
Security deposits (11)  
Accounts payable and accrued liabilities 658 408
Deferred revenue   (3,634)
Deferred lease obligations (1) 5
Net change in non-cash items related to operations 282 2,505
Net cash used in operating activities (8,530) (4,383)
Financing activities    
Repayment of long-term debt (749) (708)
Proceeds from exercise of warrants and stock options 2,328 1,238
Net proceeds from private placement 4,004  
Transaction costs of private placement (82)  
Net proceeds from public offering 11,405  
Transaction costs of public offering (502)  
Net proceeds from issuance of convertible debentures   5,469
Convertible debentures issuance costs   (491)
Net cash provided by financing activities 16,404 5,508
Investing activities    
Additions to leasehold improvements and equipment (1,096) (973)
Acquisitions of short-term investments (4,273) (3,952)
Redemptions of short-term investments 3,192 4,718
Net cash used in investing activities (2,177) (207)
Increase in cash 5,697 918
Effect of foreign exchange on cash (473) 61
Cash    
Beginning of year 1,591 612
End of year $ 6,815 $ 1,591
v3.19.1
Basis of Presentation
12 Months Ended
Dec. 31, 2018
Basis of Presentation [Text Block]
1.

Basis of Presentation

   

IntelGenx Technologies Corp. (“IntelGenx” or the “Company”) prepares its consolidated 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.

v3.19.1
Going Concern
12 Months Ended
Dec. 31, 2018
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, 2018, the Company had cash and short-term investments totaling approximately $10,995. The Company does not have sufficient existing cash and short-term investments to support operations for the next year following the issuance of these financial statements. These conditions raise substantial doubt about the Company’s ability to continue as a going concern. Management’s plans to alleviate these conditions include pursuing one or more of the following steps to raise additional funding, none of which can be guaranteed or are entirely within the Company’s control:


 

Raise funding through the possible sale of the Company’s common stock, including public or private equity financings.

 

Raise funding through debt financing.

 

Continue to seek partners to advance product pipeline.

 

Initiate oral film manufacturing activities.

 

Initiate contract oral film manufacturing activities.

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

The accompanying consolidated financial statements have been prepared on a going concern basis, which contemplates the realization of assets and satisfaction of liabilities in the ordinary course of business. The accompanying consolidated financial statements do not include any adjustments or classifications that may result from the possible inability of the Company to continue as a going concern. Should the Company be unable to continue as a going concern, it may be unable to realize the carrying value of its assets and to meet its liabilities as they become due.
v3.19.1
Nature of Business
12 Months Ended
Dec. 31, 2018
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 11 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, one utilizes the VersaTab™ technology, and one utilizes the AdVersa™ technology.

v3.19.1
Adoption of New Accounting Standards
12 Months Ended
Dec. 31, 2018
Adoption of New Accounting Standards [Text Block]
4.

Adoption of New Accounting Standards

   

The Company adopted Topic 606 Revenue from Contracts with Customers with a date of the initial application of January 1, 2018 using the modified retrospective method. As a result, the Company has changed its accounting policy for revenue recognition as detailed below.

   

This standard applies to all contracts with customers, except for contracts that are within the scope of other standards, such as leases, insurance, collaboration arrangements and financial instruments. Under Topic 606, an entity recognizes revenue when its customer obtains control of promised goods or services, in an amount that reflects the consideration which the entity expects to receive in exchange for those good or services. To determine revenue recognition for arrangements subject to the scope of Topic 606, the entity performs the following five steps: (i) identify the contract(s) with a customer; (ii) identify the performance obligations in the contract; (iii) determine the transaction price; (iv) allocate the transaction price to the performance obligations in the contract; and (v) recognize revenue when (or as) the entity satisfies a performance obligation. The Company only applies the five-step model to contracts when it is probable that the entity will collect the consideration it is entitled to in exchange for the goods or services it transfers to the customer. At contract inception, once the contract is determined to be within the scope of Topic 606, the Company assesses the goods or services promised within each contract and identifies performance obligations that are distinct. The Company then recognizes as revenue the amount of the transaction price that is allocated to each performance obligation when (or as) the performance obligation is satisfied.


ASC 606 uses the terms “contract asset” and “contract liability” to describe what might more commonly be known as “accrued revenue” and “deferred revenue”. The Company has adopted the terminology used in ASC 606 to describe such balances.

   

The Company’s accounting policies for its revenue streams are disclosed in Note 5 below. Apart from providing more extensive disclosures on the Company’s revenue transactions, the application of ASC 606 has not had a significant impact on the financial position and/or financial performance of the Company.

   

The FASB issued ASU 2017-09, Stock compensation, 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. The Company has made an accounting policy choice to recognize the effect of awards for which the requisite service is not rendered when the award is forfeited (that is, recognize the effect of forfeitures in compensation cost when they occur). Previously recognized compensation cost for an award shall be reversed in the period that the award is forfeited. The adoption of this statement did not have a material effect on the Company’s financial position or results.

   

The FASB issued ASU 2017-01, Business Combinations, 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. The adoption of this statement did not have a material effect on the Company’s financial position or results.

   

The FASB issued ASU 2016-18, Statement of Cash Flows, 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. The adoption of this statement did not have a material effect on the Company’s financial position or results.

   

The FASB issued ASU 2016-16, Income taxes, 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 adoption of this statement did not have a material effect on the Company’s financial position or results.

   

The FASB issued ASU 2016-15, Statement of Cash Flows, 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. The adoption of this statement did not have a material effect on the Company’s financial position or results.


The FASB issued ASU 2016-01, Financial Instruments. The targeted amendments to existing guidance 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 adoption of this statement did not have a material effect on the Company’s financial position or results.

v3.19.1
Summary of Significant Accounting Policies
12 Months Ended
Dec. 31, 2018
Significant Accounting Policies [Text Block]
5.

Summary of Significant Accounting Policies

   
 

Revenue Recognition

   

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

   

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

   

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

   
 

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


Research and Development Revenue

   

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

   

Licensing and Collaboration Arrangements

   

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

   

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

   

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

   

For the year ended December 31, 2017, the Company’s revenue recognition policy is as follows:

   

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.

   

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.

   

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.

   

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.

   
 

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, 2018 accounts receivable (2017: $Nil). A bad debt expense in the amount of $Nil (2017: $29) is recorded in the year ended December 31, 2018.

   

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, 2018 totaled $289 thousand (2017: $255).

   

Inventory

   

The Company values inventory at the lower of cost and net realizable value where net realizable value represents the expected sale price upon disposition less make-ready costs and the costs of disposal and transportation and determines the cost of raw material inventory using the average-cost method. The Company analyzes its inventory levels quarterly and adjusts inventory to its net realizable value, if required, for obsolete, or has a cost basis in excess of its expected net realizable value.

   

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 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 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 2018-20 Leases (Topic 842): Narrow-Scope Improvements for Lessors

 

 

The FASB issued ASU 2018-20 which addresses the following issues facing lessors when applying the leases standard:

 

 

- Sales taxes and other similar taxes collected from lessees. The amendments in the ASU permit lessors, as an accounting policy election, to not evaluate whether certain sales taxes and other similar taxes are lessor costs or lessee costs. Instead, those lessors will account for those costs as if they are lessee costs and exclude the costs from being reported as lease revenue with an associated expense.

 

 

- Certain lessor costs paid directly by lessees. The amendments in the ASU related to certain lessor costs require lessors to exclude from variable payments, and therefore revenue, lessor costs paid by lessees directly to third parties. The amendments also require lessors to account for costs excluded from the consideration of a contract that are paid by the lessor and reimbursed by the lessee as variable payments. A lessor will record those reimbursed costs as revenue.


- Recognition of variable payments for contracts with lease and nonlease components. The amendments in the ASU related to recognizing variable payments for contracts with lease and nonlease components require lessors to allocate (rather than recognize as currently required in the new leases standard) certain variable payments to the lease and nonlease components when the changes in facts and circumstances on which the variable payment is based occur. After the allocation, the amount of variable payments allocated to the lease components will be recognized as income in profit or loss in accordance with the new leasing guidance, while the amount of variable payments allocated to nonlease components will be recognized in accordance with other accounting guidance, such as revenue from contracts with customers.

   
 

These amendments are effective when the entity first applies Topic 842.

   
 

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

   

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

   

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

   

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

   

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

   

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

   

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


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

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

 

 

 

Removals

 

 

 

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

 

 

 

-The policy for timing of transfers between levels;

 

 

 

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

 

 

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

 

 

 

Modifications

 

 

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

 

 

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

 

 

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

 

 

 

Additions

 

 

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

 

 

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

 

 

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


ASU 2018-07 – Compensation – Stock Compensation (Topic 718): Improvements to Nonemployee Share- Based Payment Accounting

   

The FASB issued ASU 2018-07 to expand the scope of Topic 718 to include share-based payment transactions for acquiring goods and services from nonemployees. 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 2018-02 – Income Statement – Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income

   

The FASB issued ASU 2018-02 which provides financial statement preparers with an option to reclassify stranded tax effects within AOCI to retained earnings in each period in which the effect of the change in the U.S. federal corporate income tax rate in the Tax Cuts and Jobs Act (or portion thereof) is recorded. These amendments are effective for fiscal years beginning after December 15, 2018. The Company is currently evaluating the impact of the Statement on its consolidated financial statements.

   

ASU 2017-11 Earnings Per Share (Topic 260); Distinguishing Liabilities from Equity (Topic 480); Derivatives and Hedging (Topic 815): (Part I) Accounting for Certain Financial Instruments with Down Round Features

   

The FASB issued ASU 2017-11 which requires companies to disregard the down round feature when assessing whether the instrument is indexed to its own stock, for purposes of determining liability or equity classification. Companies that provide earnings per share (EPS) data will adjust their basic EPS calculation for the effect of the feature when triggered (i.e., when the exercise price of the related equity-linked financial instrument is adjusted downward because of the down round feature) and will also recognize the effect of the trigger within equity. These amendments are effective for fiscal years beginning after December 15, 2018. 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 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.

   

The FASB issued ASU 2018-11 which provides entities with an additional (and optional) transition method to adopt the new leases standard. Under this new transition method, an entity initially applies the new leases standard at the adoption date and recognizes a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. Consequently, an entity’s reporting for the comparative periods presented in the financial statements in which it adopts the new leases standard will continue to be in accordance with current GAAP (Topic 840, Leases).

   

The FASB issued ASU 2018-10 which amends the narrow aspects of the guidance issued in the amendments in ASU 2016-02 including those regarding residual value guarantees, rate implicit in the lease, lessee reassessment of lease classification, lessor reassessment of lease term and purchase option, variable lease payments that depend on an index or a rate, investment tax credits, lease term and purchase option, transition guidance for amounts previously recognized in business combinations, certain transition adjustments, transition guidance for leases previously classified as capital leases under Topic 840, transition guidance for modifications to leases previously classified as direct financing or sales-type leases under Topic 840, transition guidance for sale and leaseback transactions, impairment of net investment in the lease, unguaranteed residual asset, effect of initial direct costs on rate implicit in the lease, and failed sale and leaseback transactions.

   

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 has begun the process of evaluating the impact of this Statement on its consolidated financial statements and has identified all outstanding leases.

v3.19.1
Short-term investments
12 Months Ended
Dec. 31, 2018
Short-term investments [Text Block]
6.

Short-term investments

   

As at December 31, 2018, short-term investments consisting of mutual funds (CAD$5,703 million) are with a Canadian financial institution having a high credit rating. As at December 31, 2017, short-term investments consisted of mutual funds (CAD$3,589 million) and term deposits ($450 thousand).

v3.19.1
Inventory
12 Months Ended
Dec. 31, 2018
Inventory Disclosure [Abstract]  
Inventory
7.

Inventory

   

Inventory as at December 31, 2018 consisted of raw materials in the amount of $375 (2017: $Nil).

v3.19.1
Leasehold Improvements and Equipment
12 Months Ended
Dec. 31, 2018
Leasehold Improvements and Equipment [Text Block]
8.

Leasehold improvements and Equipment


                  2018     2017  
            Accumulated     Net Carrying     Net Carrying  
      Cost     Depreciation     Amount     Amount  
                           
  Manufacturing equipment $  4,092   $  580   $  3,512   $  2,953  
  Laboratory and office equipment   1,273     711     562     759  
  Computer equipment   106     67     39     44  
  Leasehold improvements   3,039     904     2,135     2,590  
                           
    $  8,510   $  2,262   $  6,248   $  6,346  

From the balance of manufacturing equipment, an amount of $1,703 thousand (2017: $822 thousand) represents assets which are still under construction as at December 31, 2018 and are consequently not depreciated. The commitment of the Company for the remainder of the project is as disclosed in note 13.

v3.19.1
Bank indebtedness
12 Months Ended
Dec. 31, 2018
Bank indebtedness [Text Block]
9.

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 ($183 thousand) and corporate credits cards of up to CAD$75 thousand ($55 thousand), and foreign exchange contracts limited to CAD$425 thousand ($312 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 all present and future movable property of the Company for an amount of CAD$4,250,000 ($3,115,000) 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, 2018, 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.

v3.19.1
Long-term debt
12 Months Ended
Dec. 31, 2018
Long-term debt [Text Block]
10.

Long-term debt

   

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


      December 31, 2018     December 31, 2017  
          $  
               
               
  Term loan facility   1,502     2,233  
  Secured loan   330     531  
  Total debt   1,832     2,764  
               
  Less: current portion   692     772  
               
  Total long-term debt   1,140     1,992  

The Company’s term loan facility consists of a total of CAD$4 million ($2.93 million) bearing interest at the Bank’s prime lending rate plus 2.50%, with monthly principal repayments of CAD$62 thousand ($45 thousand). The term loan is subject to the same security and financial covenants as the bank indebtedness (see note 9).

The secured loan has a principal balance authorized of CAD$1 million ($733 thousand) bearing interest at prime plus 7.3%, reimbursable in monthly principal payments of CAD$17 thousand ($12 thousand). 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, 2018, 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 three years are as follows:

  2019 692 (CAD 945)
  2020 692 (CAD 945)
  2021 448 (CAD 610)
v3.19.1
Convertible Debentures
12 Months Ended
Dec. 31, 2018
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 ($5,012,000). Pursuant to the Offering, the Corporation issued an aggregate principal amount of CAD$6,838,000 ($5,012,000) of Debentures at a price of CAD$1,000 ($733) per Debenture. The Debentures will mature on June 30, 2020 and bear interest at annual rate of 8% payable semi-annually on the last day of June and December of each year, commencing on December 31, 2017. The interest may be paid in common shares at the option of the Corporation. The Debentures will be convertible at the option of the holders at any time prior to the close of business on the earlier of June 30, 2020 and the business day immediately preceding the date specified by the Corporation for redemption of Debentures. The conversion price will be CAD$1.35 ($0.99) (the “Conversion Price”) per common share of the Corporation (“Share”), being a conversion rate of approximately 740 Shares per CAD$1,000 ($733) 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 ($559,000).

   

Together with the principal amount of CAD$6,838,000 ($5,012,000) 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 ($733) per Debenture.

   

The convertible debentures have been recorded as a liability. Total transactions costs in the amount of CAD$1,237,000 ($907,000) were recorded against the liability. The accretion expense for the period ended December 31, 2018 amounts to CAD$383,000 ($296,000) compared to CAD$160,000 ($123,000) for the year ended December 31, 2017.

   

During the year ended December 31, 2018, CAD$23,000 ($17,000) of convertible debentures were converted into 17,036 common shares at the option of the holders, resulting in an increase in additional paid-in capital of $16 thousand.

 

 

 

The components of the convertible debentures are as follows:


      December 31,     December 31,  
      2018     2017  
               
               
  Face value of the convertible debentures $  5,556   $  6,058  
  Transaction costs   (907 )   (986 )
  Accretion   398     127  
  Convertible debentures $  5,047   $  5,199  

Interest accrued during the year ended December 31, 2018 on the convertible debentures amounts to CAD$607 thousand ($468 thousand) out of which CAD$304 thousand ($231 thousand) was paid by issuance of 307,069 common shares on July 3, 2018 and CAD$303 thousand ($237 thousand) was paid in cash on December 28, 2018. Interest accrued as at December 31, 2017 on the convertible debentures amounts to CAD$287 thousand ($221 thousand) and was paid on December 29, 2017. The interest expense on the convertible debentures is recorded in financing and interest expense.

v3.19.1
Convertible Note
12 Months Ended
Dec. 31, 2018
Notes to Financial Statements [Abstract]  
Convertible Notes [Text Block]
12.

Convertible Notes

   

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

   

Each Unit is comprised of (i) 7,940 common shares of the Corporation (“Common Shares”), (ii) a $5,000 convertible 6% note (a “Note”), and (iii) 7,690 warrants to purchase common shares of the Corporation (“Warrants”). Each Note bears interest at a rate of 6% (payable quarterly, in arrears, with the first payment being

 

due on September 1, 2018), matures on June 1, 2021 and is convertible into Common Shares at a conversion price of $0.80 per Common Share. Each Warrant entitles its holder to purchase one Common Share at a price of $0.80 per Common Share until June 1, 2021.

   

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

   

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

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

The convertible notes have been recorded as a liability. Total transactions costs in the amount of $111 thousand were recorded against the liability. The accretion expense for the year ended December 31, 2018 amounts to $98,000. The warrants have been recorded as equity.

The components of the convertible notes are as follows:

    December 31,  
    2018  
       
       
Attributed value of net proceeds to convertible notes $  975  
Accretion   98  
Convertible notes $  1,073  

The interest on the convertible notes for the year ended December 31, 2018 amounts to $63 thousand and is recorded in financing and interest expense.

The proceeds of the Units are attributed to liability and equity components based on the fair value of each component. Management has determined the value attributed to the common stock is $1,460 and $437 for the warrants issued, resulting in an increase in additional paid-in-capital of $1,897.

v3.19.1
Commitments
12 Months Ended
Dec. 31, 2018
Commitments [Text Block]
13.

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 $81 thousand) per year, which will increase at a rate of CAD$0.25 ($0.18) 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 $54 thousand) per year, which will increase at a rate of CAD$0.25 ($0.18) 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 $1,058 thousand, as follows:

 
  2019 140
  2020 143
  2021 145
  2022 148
  2023 150
  Thereafter 332

The Company has initiated a project to expand the existing manufacturing facility. The Company has signed agreements in the amount of Euro1,911 thousand with three suppliers with respect to equipment for solvent film manufacturing. As at December 31, 2018 an amount of Euro1,395 thousand has been paid with respect to these agreements (note 8).

v3.19.1
Capital Stock
12 Months Ended
Dec. 31, 2018
Capital Stock [Text Block]
14.

Capital Stock

 
      2018     2017  
  Authorized -            
               
  200,000,000 common shares of $0.00001 par value            
    20,000,000 preferred shares of $0.00001 par value            
               
  Issued -            
               
    93,477,473 (December 31, 2017: 67,031,467) common shares $  1   $  1  

Private placement

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

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

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

The proceeds of the Units are attributed to liability and equity components based on the fair value of each component, resulting in an increase in additional paid-in-capital of $1,897. Management has determined the value attributed to common stock is $1,460 and $437 for the warrants issued.

Private Placement Financing

On November 13, 2018, the Company announced the closing of Tilray Inc.’s strategic investment in IntelGenx by was of a private placement. Pursuant to the private placement, the Company issued 1,428,571 common shares at a subscription price of $0.70 per common share for gross proceeds of $1,000,000, resulting in an increase in additional paid-in capital of $1,000,000.

 
  Public Offering
   

On October 22, 2018, IntelGenx announced the closing of 17,144,314 units at a price of US$0.70 for gross proceeds of approximately US$12 million in the United States and the Canadian provinces of Alberta, British Columbia, Manitoba, Ontario and Quebec.

   

On October 26, 2018 IntelGenx announced that Echelon Wealth Partners Inc., who acted as the Company’s exclusive placement agent in Canada in connection with the Offering, had exercised its option to place a further 903,610 Units pursuant to its over-allotment option, resulting in additional gross proceeds to the Company of US$632,527.

   

Each Unit will consist of one share of common stock of the Company and one half of one warrant, each whole Warrant to purchase one share of common stock of the Company at an exercise price of US$1.00 per share. The Warrants are exercisable immediately and will expire on the third anniversary of the date of their issuance. Management has determined the value attributed to common stock is $9,187 and $1,436 for the warrants issued, resulting in an increase in additional paid-in-capital of $10,623.

   

In connection with the Offering, the Company paid to the Agents a cash commission of approximately $560,000 in the aggregate and issued non-transferable agents’ warrants to the Agents, entitling the Agents to purchase 1,226,360 common shares at a price of $0.875 per share until June 1, 2021. Management has determined the value of the agents’ warrants to be $280,000, resulting in an increase in additional paid-in-capital of $280 thousand.

   

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

 
      Gross proceeds     Transaction costs     Net proceeds  
                     
  Common stock $  10,926   $  1,739   $  9,187  
  Warrants   1,708     272     1,436  
    $  12,634   $  2,011   $  10,623  
 
  Stock options
   

During the year ended December 31, 2018 a total of 60,000 stock options were exercised for 60,000 common shares having a par value of $0 thousand in aggregate, for cash consideration of $33 thousand, resulting in an increase in additional paid-in capital of $33 thousand.

   

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.

   

Stock-based compensation of $370 thousand and $315 thousand was recorded during the year ended December 31, 2018 and 2017 respectively. An amount of $356 thousand (2017 - $309 thousand) expensed relates to stock options granted to employees and directors and an amount of $14 thousand (2017- $6 thousand) relates to stock options granted to consultants during the year ended December 31, 2018 and 2017. As at December 31, 2018 the Company has $453 thousand (2017 - $196 thousand) of unrecognized stock-based compensation, of which $83 thousand (2017 – $5) relates to options granted to consultants.

   
 

Warrants

   

In the year ended December 31, 2018 a total of 4,044,606 warrants were exercised for 4,044,606 common shares having a par value of $Nil in aggregate, for cash consideration of approximately $2,295 thousand, resulting in an increase in additional paid-in capital of approximately $2,295 thousand.

   

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.

v3.19.1
Additional Paid-In Capital
12 Months Ended
Dec. 31, 2018
Additional Paid-In Capital [Text Block]
15.

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 9,347,747 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:

 
      2018     2017  
  Exercise price   0.74     0.82  
  Expected volatility   59%     60%  
  Expected life   5.63 years     5.34 years  
  Risk-free interest rate   2.73%     1.85%  
  Dividend yield   Nil     Nil  

The weighted average fair value of the options granted to employees and directors during the year ended December 31, 2018 is $0.40 (2017 - $0.44) .

The weighted average fair value of the options granted to consultants during the year ended December 31, 2018 is $0.19. No options were granted to consultants during the year ended December 31, 2017.

Information with respect to employees and directors stock option activity for 2017 and 2018 is as follows:

            Weighted average  
      Number of options     exercise price  
            $  
               
  Outstanding – January 1, 2017   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  
               
  Granted   1,250,000     0.74  
  Forfeited   (175,000 )   (0.69 )
  Expired   (100,000 )   (0.52 )
  Exercised   (60,000 )   (0.56 )
               
  Outstanding – December 31, 2018   3,854,818     0.68  
 

Information with respect to consultant’s stock option activity for 2017 and 2018 is as follows:

 
            Weighted average  
      Number of options     exercise price  
             
               
  Outstanding – January 1, 2017 and December 31, 2017   50,000     0.73  
         
  Granted   500,000     0.72  
               
  Outstanding – December 31, 2018   550,000     0.72  

Details of stock options outstanding as at December 31, 2018 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     0.15     0.03           325,000     0.05        
  0.53   125,000     0.03     0.02           125,000     0.02        
  0.58   675,000     0.24     0.09           675,000     0.14        
  0.62   200,000     0.06     0.03           200,000     0.04        
  0.66   275,000     0.58     0.04           68,750     0.02        
  0.70   475,000     0.43     0.08           -     -        
  0.73   600,000     0.99     0.10           600,000     0.15        
  0.76   945,000     1.98     0.16           345,000     0.09        
  0.77   359,818     0.71     0.06           179,909     0.05        
  0.78   100,000     0.06     0.02           -     -        
  0.79   25,000     0.05     0.00           25,000     0.01        
  0.89   300,000     0.55     0.06           300,000     0.09        
      4,404,818     5.83     0.69     43,500     2,843,659     0.66     43,500  
 

Stock-based compensation expense recognized in 2018 with regards to the stock options was $345 thousand (2017: $315 thousand). As at December 31, 2018 the Company has $453 thousand (2017 - $196 thousand) of unrecognized stock-based compensation, of which $83 thousand (2017 – $5 thousand) relates to options granted to consultants. The amount of $453 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 $453 thousand being charged to stock-based compensation expense.

   

Warrants

   

In the year ended December 31, 2018 a total of 4,044,606 warrants were exercised for 4,044,606 common shares having a par value of $Nil in aggregate, for cash consideration of approximately $2,295 thousand, resulting in an increase in additional paid-in capital of approximately $2,295 thousand.

   

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.

   

Information with respect to warrant activity for 2017 and 2018 is as follows:

 
      Number of     Weighted average  
      warrants     exercise price  
      (All Exercisable)     $  
  Outstanding – January 1, 2017   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  
               
  Granted   12,954,397     0.9464  
               
  Exercised   (4,044,606 )   (0.5675 )
               
  Expired   (76,296 )   (0.5646 )
               
  Outstanding - December 31, 2018   12,904,397     0.9470  
 
 

Deferred Share Units (“DSUs”)

 

 

Effective February 7, 2018, the Board approved a Deferred Share Unit Plan (DSU Plan) to compensate non- employee directors as part of their annual remuneration. Under the DSU Plan, the Board may grant Deferred Share Units (“DSUs”) to the participating directors at its discretion and, in addition, each participating director may elect to receive all or a portion of his or her annual cash stipend in the form of DSUs. To the extent DSUs are granted, the amount of compensation that is deferred is converted into a number of DSUs, as determined by the market price of our Common Stock on the effective date of the election. These DSUs are converted back into a cash amount at the expiration of the deferral period based on the market price of our Common Stock on the expiration date and paid to the director in cash in accordance with the payout terms of the DSU Plan. As the DSUs are on a cash-only basis, no shares of Common Stock will be reserved or issued in connection with the DSUs. On May 16, 2018, 287,355 DSUs have been granted under the DSU Plan as of the date of this filing, accordingly, an amount of $160 thousand has been recognized in general and administrative expenses.

   
 

Performance and Restricted Share Units (“PRSUs”)

 

 

At the Annual Meeting on May 8, 2018, the shareholders approved the IntelGenx Technologies Corp. Performance and Restricted Share Unit Plan (PRSU Plan) which the Board of Directors had approved on March 19, 2018. The primary purpose of this PRSU Plan is to provide the Company with a share-related mechanism to attract, retain and motivate qualified executive officers of the Company and its Subsidiaries and to reward such executive officers for their contributions toward the long-term goals and success of the Company and to enable and encourage such executive officers to acquire shares of Common Stock as long-term investments and proprietary interests in the Company. As at December 31, 2018, 53,846 rewards have been issued under the PRSU Plan, accordingly an amount of $25 thousand has been recognized as stock-based compensation in general and administrative expenses.

v3.19.1
Income Tax
12 Months Ended
Dec. 31, 2018
Income Tax [Text Block]
16.

Income Taxes

   

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

 
      2018     2017  
  Statutory income taxes $  (2,421 ) $  (794 )
  Net operating losses for which no tax benefits have been recorded   1,185     346  
  Deficiency of depreciation over capital cost allowance   (236 )   (235 )
  Non-deductible expenses   422     239  
  Undeducted research and development expenses   1,167     525  
  Investment tax credit   (117 )   (81 )
               
               
    $  -   $  -  
 

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

 
      2018     2017  
               
  Leasehold improvements and equipment $  418   $  252  
  Net operating losses carryforward   4,170     2,620  
  Undeducted research and development expenses   2,774     2,054  
  Non-refundable tax credits carryforward   1,982     1,553  
               
      9,344     6,479  
               
  Valuation allowance   (9,344 )   (6,479 )
               
    $  -   $  -  

As at December 31, 2018, 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 2019, 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 $14,934 thousand (2017: $9,560 thousand) and $16,498 thousand (2017: $10,052 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 2038. A portion of the net operating losses may expire before they can be utilized.

As at December 31, 2018, the Company had non-refundable tax credits of $1,981 thousand (2017: $1,553 thousand) of which $8 thousand is expiring in 2026, $9 thousand is expiring in 2027, $165 thousand is expiring in 2028, $145 thousand is expiring in 2029, $124 thousand is expiring in 2030, $131 thousand is expiring in 2031, $164 thousand is expiring in 2032, $109 thousand is expiring in 2033, $83 thousand expiring in 2034, $97 thousand is expiring in 2035, $135 thousand expiring in 2036, $257 thousand is expiring in 2037 and $554 thousand expiring in 2038 and undeducted research and development expenses of $10,663 thousand (2017: $7,532 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, 2018:

 
Tax Jurisdictions   Tax Years
Federal - Canada   2014 and onward
Provincial - Quebec   2014 and onward
Federal - USA   2014 onward
v3.19.1
Revenues
12 Months Ended
Dec. 31, 2018
Revenue from Contract with Customer [Abstract]  
Revenues
17.

Revenues

   

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

 
      December 31, 2018     December 31, 2017  
               
               
  Research and development agreements $  1,824   $  1,019  
  Licensing agreements   -     416  
  Deferred revenue (sale of future royalties)   -     3,760  
    $  1,824   $  5,195  

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

      December 31, 2018     December 31, 2017  
               
               
  Product and services transferred at point in time $  -   $  416  
  Products and services transferred over time   1,824     4,779  
    $  1,824   $  5,195  
 

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

 
      December 31, 2018     December 31, 2017  
               
  Europe $  1,715     1,005  
  Canada   109     399  
  U.S.   -     3,760  
  Other foreign countries   -     31  
    $  1,824   $  5,195  
 

Remaining performance obligations

   

As at December 31, 2018, the aggregate amount of the transaction price allocated to the remaining performance obligation is $1,509 representing research and development agreements, the majority of which is expected to be recognized in the next twelve months. The Company is also eligible to receive up to $4,854 in research and development milestone payments, approximately 60% of which is expected to be recognized in the next three years, with the remaining 40% expected in the two years following; up to $28,751 in commercial sales milestone payments, the majority of which is expected to be recognized in the next five years, but is wholly dependent on the marketing efforts of our development partners. In addition, the Company is entitled to receive royalties on potential sales.

   

The Company applies the practical expedient in paragraph 606-10-50-14 and does not disclose information about the remaining performance obligations that have original expected durations of one year or less.

   

The Company applies the transition practical expedient in paragraph 606-10-65-1(f)(3) and does not disclose the amount of the transaction price allocated to the remaining performance obligations and an explanation of when the Company expects to recognize that amount as revenue for the year ended December 31, 2018.

v3.19.1
Statement of Cash Flows Information
12 Months Ended
Dec. 31, 2018
Statement of Cash Flows Information [Text Block]
18.

Statement of Cash Flows Information

 
  In US$ thousands   2018     2017  
               
  Additional Cash Flow Information:            
               
  Interest paid $  476   $  408  
v3.19.1
Related Party Transactions
12 Months Ended
Dec. 31, 2018
Related Party Transactions [Text Block]
19.

Related party transactions

   

Included in management salaries are $75 thousand (2017 - $10 thousand) for options and PRSUs granted to the Chief Executive Officer, $46 thousand (2017 - $37 thousand) for options and PRSUs granted to the Chief Financial Officer, $Nil thousand (2017 - $3 thousand) for options granted to the former Vice President, Operations, $24 thousand (2017 - $9) for options granted to the Vice-President, Research and $54 thousand for options granted to Vice-President, Business and Corporate Development (2017 – $34) under the 2016 Stock Option Plans and $11 thousand (2017 - $131 thousand) for options granted to non-employee directors.

   

Included in general and administrative expenses are director fees of $250 thousand (2017: $256 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.

v3.19.1
Basic and Diluted Loss Per Common Share
12 Months Ended
Dec. 31, 2018
Basic and Diluted Loss Per Common Share [Text Block]
20.

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.

v3.19.1
Subsequent Event
12 Months Ended
Dec. 31, 2018
Subsequent Event [Text Block]
21.

Subsequent events

   

Subsequent to the end of the year, a total of 50,000 options were exercised for 50,000 common shares having a par value of $Nil in aggregate, for cash consideration of approximately $21 thousand.

v3.19.1
Summary of Significant Accounting Policies (Policies)
12 Months Ended
Dec. 31, 2018
Revenue Recognition [Policy Text Block]
 

Revenue Recognition

   

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

   

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

   

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

   
 

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

 

Research and Development Revenue

   

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

   

Licensing and Collaboration Arrangements

   

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

   

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

   

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

   

For the year ended December 31, 2017, the Company’s revenue recognition policy is as follows:

   

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.

   

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.

   

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.

   

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.

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, 2018 accounts receivable (2017: $Nil). A bad debt expense in the amount of $Nil (2017: $29) is recorded in the year ended December 31, 2018.

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, 2018 totaled $289 thousand (2017: $255).

Inventory, Policy [Policy Text Block]

Inventory

   

The Company values inventory at the lower of cost and net realizable value where net realizable value represents the expected sale price upon disposition less make-ready costs and the costs of disposal and transportation and determines the cost of raw material inventory using the average-cost method. The Company analyzes its inventory levels quarterly and adjusts inventory to its net realizable value, if required, for obsolete, or has a cost basis in excess of its expected net realizable value.

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 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 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 2018-20 Leases (Topic 842): Narrow-Scope Improvements for Lessors
 

 

The FASB issued ASU 2018-20 which addresses the following issues facing lessors when applying the leases standard:

 

 

- Sales taxes and other similar taxes collected from lessees. The amendments in the ASU permit lessors, as an accounting policy election, to not evaluate whether certain sales taxes and other similar taxes are lessor costs or lessee costs. Instead, those lessors will account for those costs as if they are lessee costs and exclude the costs from being reported as lease revenue with an associated expense.

 

 

- Certain lessor costs paid directly by lessees. The amendments in the ASU related to certain lessor costs require lessors to exclude from variable payments, and therefore revenue, lessor costs paid by lessees directly to third parties. The amendments also require lessors to account for costs excluded from the consideration of a contract that are paid by the lessor and reimbursed by the lessee as variable payments. A lessor will record those reimbursed costs as revenue.

   

- Recognition of variable payments for contracts with lease and nonlease components. The amendments in the ASU related to recognizing variable payments for contracts with lease and nonlease components require lessors to allocate (rather than recognize as currently required in the new leases standard) certain variable payments to the lease and nonlease components when the changes in facts and circumstances on which the variable payment is based occur. After the allocation, the amount of variable payments allocated to the lease components will be recognized as income in profit or loss in accordance with the new leasing guidance, while the amount of variable payments allocated to nonlease components will be recognized in accordance with other accounting guidance, such as revenue from contracts with customers.

   
 

These amendments are effective when the entity first applies Topic 842.

   
 

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

   

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

   

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

   

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

   

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

   

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

   

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

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

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

 

 

 

Removals

 

 

 

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

 

 

 

-The policy for timing of transfers between levels;

 

 

 

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

 

 

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

 

 

 

Modifications

 

 

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

 

 

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

 

 

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

 

 

 

Additions

 

 

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

 

 

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

 

 

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

   

ASU 2018-07 – Compensation – Stock Compensation (Topic 718): Improvements to Nonemployee Share- Based Payment Accounting

   

The FASB issued ASU 2018-07 to expand the scope of Topic 718 to include share-based payment transactions for acquiring goods and services from nonemployees. 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 2018-02 – Income Statement – Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income

   

The FASB issued ASU 2018-02 which provides financial statement preparers with an option to reclassify stranded tax effects within AOCI to retained earnings in each period in which the effect of the change in the U.S. federal corporate income tax rate in the Tax Cuts and Jobs Act (or portion thereof) is recorded. These amendments are effective for fiscal years beginning after December 15, 2018. The Company is currently evaluating the impact of the Statement on its consolidated financial statements.

   

ASU 2017-11 Earnings Per Share (Topic 260); Distinguishing Liabilities from Equity (Topic 480); Derivatives and Hedging (Topic 815): (Part I) Accounting for Certain Financial Instruments with Down Round Features

   

The FASB issued ASU 2017-11 which requires companies to disregard the down round feature when assessing whether the instrument is indexed to its own stock, for purposes of determining liability or equity classification. Companies that provide earnings per share (EPS) data will adjust their basic EPS calculation for the effect of the feature when triggered (i.e., when the exercise price of the related equity-linked financial instrument is adjusted downward because of the down round feature) and will also recognize the effect of the trigger within equity. These amendments are effective for fiscal years beginning after December 15, 2018. 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 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.

   

The FASB issued ASU 2018-11 which provides entities with an additional (and optional) transition method to adopt the new leases standard. Under this new transition method, an entity initially applies the new leases standard at the adoption date and recognizes a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. Consequently, an entity’s reporting for the comparative periods presented in the financial statements in which it adopts the new leases standard will continue to be in accordance with current GAAP (Topic 840, Leases).

   

The FASB issued ASU 2018-10 which amends the narrow aspects of the guidance issued in the amendments in ASU 2016-02 including those regarding residual value guarantees, rate implicit in the lease, lessee reassessment of lease classification, lessor reassessment of lease term and purchase option, variable lease payments that depend on an index or a rate, investment tax credits, lease term and purchase option, transition guidance for amounts previously recognized in business combinations, certain transition adjustments, transition guidance for leases previously classified as capital leases under Topic 840, transition guidance for modifications to leases previously classified as direct financing or sales-type leases under Topic 840, transition guidance for sale and leaseback transactions, impairment of net investment in the lease, unguaranteed residual asset, effect of initial direct costs on rate implicit in the lease, and failed sale and leaseback transactions.

   

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 has begun the process of evaluating the impact of this Statement on its consolidated financial statements and has identified all outstanding leases.

v3.19.1
Significant Accounting Policies (Tables)
12 Months Ended
Dec. 31, 2018
Schedule of Estimated Useful Lives of Leasehold Improvements and Equipment [Table Text Block]
  On the declining balance method -  
     
         Laboratory and office equipment 20%
         Computer equipment 30%
     
  On the straight-line method -  
     
         Leasehold improvements over the lease term
         Manufacturing equipment 5 – 10 years
v3.19.1
Leasehold Improvements and Equipment (Tables)
12 Months Ended
Dec. 31, 2018
Schedule of Leasehold Improvements and Equipment [Table Text Block]
                  2018     2017  
            Accumulated     Net Carrying     Net Carrying  
      Cost     Depreciation     Amount     Amount  
                           
  Manufacturing equipment $  4,092   $  580   $  3,512   $  2,953  
  Laboratory and office equipment   1,273     711     562     759  
  Computer equipment   106     67     39     44  
  Leasehold improvements   3,039     904     2,135     2,590  
                           
    $  8,510   $  2,262   $  6,248   $  6,346  
v3.19.1
Long-term debt (Tables)
12 Months Ended
Dec. 31, 2018
Term loan [Table Text Block]
      December 31, 2018     December 31, 2017  
          $  
               
               
  Term loan facility   1,502     2,233  
  Secured loan   330     531  
  Total debt   1,832     2,764  
               
  Less: current portion   692     772  
               
  Total long-term debt   1,140     1,992  
Term loan principal repayments [Table Text Block]
  2019 692 (CAD 945)
  2020 692 (CAD 945)
  2021 448 (CAD 610)
v3.19.1
Convertible Debentures (Tables)
12 Months Ended
Dec. 31, 2018
Schedule of Convertible Debt [Table Text Block]
      December 31,     December 31,  
      2018     2017  
               
               
  Face value of the convertible debentures $  5,556   $  6,058  
  Transaction costs   (907 )   (986 )
  Accretion   398     127  
  Convertible debentures $  5,047   $  5,199  
v3.19.1
Convertible Note (Tables)
12 Months Ended
Dec. 31, 2018
Notes to Financial Statements [Abstract]  
Schedule of Capital Units [Table Text Block]
      Gross proceeds     Transaction costs     Net proceeds  
                     
  Common stock $  1,627   $  167   $  1,460  
  Convertible notes   1,086     111     975  
  Warrants   487     50     437  
    $  3,200   $  328   $  2,872  
Schedule of Components of the Convertible Notes [Table Text Block]
    December 31,  
    2018  
       
       
Attributed value of net proceeds to convertible notes $  975  
Accretion   98  
Convertible notes $  1,073  
v3.19.1
Commitments (Tables)
12 Months Ended
Dec. 31, 2018
Schedule of future minimum payments under operating leases [Table Text Block]
  2019 140
  2020 143
  2021 145
  2022 148
  2023 150
  Thereafter 332
v3.19.1
Capital Stock (Tables)
12 Months Ended
Dec. 31, 2018
Schedule of Stock by Class [Table Text Block]
      2018     2017  
  Authorized -            
               
  200,000,000 common shares of $0.00001 par value            
    20,000,000 preferred shares of $0.00001 par value            
               
  Issued -            
               
    93,477,473 (December 31, 2017: 67,031,467) common shares $  1   $  1  
Schedule Of Proceeds Of Equity Components Based On Fair Value [Table Text Block]
      Gross proceeds     Transaction costs     Net proceeds  
                     
  Common stock $  10,926   $  1,739   $  9,187  
  Warrants   1,708     272     1,436  
    $  12,634   $  2,011   $  10,623  
v3.19.1
Additional Paid-In Capital (Tables)
12 Months Ended
Dec. 31, 2018
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block]
      2018     2017  
  Exercise price   0.74     0.82  
  Expected volatility   59%     60%  
  Expected life   5.63 years     5.34 years  
  Risk-free interest rate   2.73%     1.85%  
  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, 2017   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  
               
  Granted   1,250,000     0.74  
  Forfeited   (175,000 )   (0.69 )
  Expired   (100,000 )   (0.52 )
  Exercised   (60,000 )   (0.56 )
               
  Outstanding – December 31, 2018   3,854,818     0.68  
Schedule of Stock Option Activity to Consultants [Table Text Block]
            Weighted average  
      Number of options     exercise price  
             
               
  Outstanding – January 1, 2017 and December 31, 2017   50,000     0.73  
         
  Granted   500,000     0.72  
               
  Outstanding – December 31, 2018   550,000     0.72  
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     0.15     0.03           325,000     0.05        
  0.53   125,000     0.03     0.02           125,000     0.02        
  0.58   675,000     0.24     0.09           675,000     0.14        
  0.62   200,000     0.06     0.03           200,000     0.04        
  0.66   275,000     0.58     0.04           68,750     0.02        
  0.70   475,000     0.43     0.08           -     -        
  0.73   600,000     0.99     0.10           600,000     0.15        
  0.76   945,000     1.98     0.16           345,000     0.09        
  0.77   359,818     0.71     0.06           179,909     0.05        
  0.78   100,000     0.06     0.02           -     -        
  0.79   25,000     0.05     0.00           25,000     0.01        
  0.89   300,000     0.55     0.06           300,000     0.09        
      4,404,818     5.83     0.69     43,500     2,843,659     0.66     43,500  
Schedule of Stockholders' Equity Note, Warrants or Rights, Activity [Table Text Block]
      Number of     Weighted average  
      warrants     exercise price  
      (All Exercisable)     $  
  Outstanding – January 1, 2017   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  
               
  Granted   12,954,397     0.9464  
               
  Exercised   (4,044,606 )   (0.5675 )
               
  Expired   (76,296 )   (0.5646 )
               
  Outstanding - December 31, 2018   12,904,397     0.9470  
v3.19.1
Income Tax (Tables)
12 Months Ended
Dec. 31, 2018
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block]
      2018     2017  
  Statutory income taxes $  (2,421 ) $  (794 )
  Net operating losses for which no tax benefits have been recorded   1,185     346  
  Deficiency of depreciation over capital cost allowance   (236 )   (235 )
  Non-deductible expenses   422     239  
  Undeducted research and development expenses   1,167     525  
  Investment tax credit   (117 )   (81 )
               
               
    $  -   $  -  
Schedule of Deferred Tax Assets and Liabilities [Table Text Block]
      2018     2017  
               
  Leasehold improvements and equipment $  418   $  252  
  Net operating losses carryforward   4,170     2,620  
  Undeducted research and development expenses   2,774     2,054  
  Non-refundable tax credits carryforward   1,982     1,553  
               
      9,344     6,479  
               
  Valuation allowance   (9,344 )   (6,479 )
               
    $  -   $  -  
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
v3.19.1
Revenues (Tables)
12 Months Ended
Dec. 31, 2018
Revenue from Contract with Customer [Abstract]  
Disaggregation of Revenue [Table Text Block]
      December 31, 2018     December 31, 2017  
               
               
  Research and development agreements $  1,824   $  1,019  
  Licensing agreements   -     416  
  Deferred revenue (sale of future royalties)   -     3,760  
    $  1,824   $  5,195  
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Table Text Block]
      December 31, 2018     December 31, 2017  
               
               
  Product and services transferred at point in time $  -   $  416  
  Products and services transferred over time   1,824     4,779  
    $  1,824   $  5,195  
Schedule of Revenue from External Customers and Long-Lived Assets, by Geographical Areas [Table Text Block]
      December 31, 2018     December 31, 2017  
               
  Europe $  1,715     1,005  
  Canada   109     399  
  U.S.   -     3,760  
  Other foreign countries   -     31  
    $  1,824   $  5,195  
v3.19.1
Statement of Cash Flows Information (Tables)
12 Months Ended
Dec. 31, 2018
Schedule of Cash Flow, Supplemental Disclosures [Table Text Block]
  In US$ thousands   2018     2017  
               
  Additional Cash Flow Information:            
               
  Interest paid $  476   $  408  
v3.19.1
Going Concern (Narrative) (Details)
$ in Thousands
Dec. 31, 2018
USD ($)
Cash and short-term investments $ 10,995
v3.19.1
Significant Accounting Policies (Narrative) (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2018
Dec. 31, 2017
Up-front licensing fees   $ 416
Revenues $ 1,824 5,195
Deferred Revenue, Revenue Recognized   0
Allowance for Doubtful Accounts Receivable   0
Bad debt expense 0 29
Investment Tax Credit 289 255
Research and Development Arrangement [Member]    
Revenues $ 1,824 1,019
Royalties [Member]    
Deferred Revenue, Revenue Recognized   $ 0
v3.19.1
Short-term investments (Narrative) (Details)
$ in Thousands, $ in Millions
Dec. 31, 2018
USD ($)
Dec. 31, 2018
CAD ($)
Dec. 31, 2017
USD ($)
Dec. 31, 2017
CAD ($)
Short-term investments $ 4,180   $ 3,313  
Mutual Fund [Member]        
Short-term investments   $ 5,703   $ 3,589
Term Deposit [Member]        
Short-term investments     $ 450  
v3.19.1
Inventory (Narrative) (Details)
$ in Thousands
Dec. 31, 2018
USD ($)
Inventory Disclosure [Abstract]  
Raw materials inventory $ 375
v3.19.1
Leasehold Improvements and Equipment (Narrative) (Details) - USD ($)
$ in Thousands
Dec. 31, 2018
Dec. 31, 2017
Property, Plant and Equipment, Net $ 6,248 $ 6,346
Asset not yet in service [Member]    
Property, Plant and Equipment, Net $ 1,703 $ 822
v3.19.1
Bank indebtedness (Narrative) (Details) - 12 months ended Dec. 31, 2018
USD ($)
CAD ($)
Line of Credit Facility, Interest Rate Description Bank's prime lending rate plus 2%.  
Line of Credit Facility, Collateral The credit facility and term loan (see note 10) are secured by a first ranking movable hypothec on all present and future movable property of the Company for an amount of CAD$4,250,000 ($3,115,000) plus 20%, and a 50% guarantee by Export Development Canada, a Canadian Crown corporation export credit agency.  
Line Of Credit Facility, Collateral Amount $ 3,115,000 $ 4,250,000
Line Of Credit Facility, Collateral Percentage 20.00%  
Line Of Credit Facility, Guarantee Percentage By Export Development Canada 50.00%  
Line of Credit [Member]    
Long-term Line of Credit $ 183,000 250,000
Corporate Credit Cards [Member]    
Long-term Line of Credit 55,000 75,000
Foreign Exchange Contract [Member]    
Long-term Line of Credit $ 312,000 $ 425,000
v3.19.1
Long-term debt (Narrative) (Details) - 12 months ended Dec. 31, 2018
$ in Thousands, $ in Thousands
USD ($)
CAD ($)
CAD ($)
Term loan facility [Member]      
Debt Instrument, Face Amount $ 2,930   $ 4,000
Debt Instrument, Interest Rate Terms Bank's prime lending rate plus 2.50% Bank's prime lending rate plus 2.50%  
Debt Instrument, Periodic Payment $ 45 $ 62  
Secured Loan [Member]      
Debt Instrument, Face Amount $ 733   $ 1,000
Debt Instrument, Interest Rate Terms bearing interest at prime plus 7.3% bearing interest at prime plus 7.3%  
Debt Instrument, Periodic Payment $ 12 $ 17  
v3.19.1
Convertible Debentures (Narrative) (Details)
1 Months Ended 12 Months Ended
May 08, 2018
USD ($)
$ / shares
shares
May 08, 2018
CAD ($)
shares
Aug. 08, 2017
USD ($)
Aug. 08, 2017
CAD ($)
Jul. 12, 2017
USD ($)
$ / shares
shares
Jul. 12, 2017
CAD ($)
Dec. 28, 2018
USD ($)
Dec. 28, 2018
CAD ($)
Aug. 08, 2017
USD ($)
Aug. 08, 2017
CAD ($)
Dec. 31, 2018
USD ($)
shares
Dec. 31, 2018
CAD ($)
shares
Dec. 31, 2017
USD ($)
Dec. 31, 2017
CAD ($)
Dec. 31, 2017
CAD ($)
Jul. 12, 2017
$ / shares
shares
Net proceeds from issuance of convertible debentures     $ 559,000 $ 762,000 $ 5,012,000 $ 6,838,000       $ 7,600,000     $ 5,469,000      
Proceeds from Convertible Debt, amount per instrument         $ 733 $ 1,000     $ 733 $ 1,000