INTELGENX TECHNOLOGIES CORP., 10-K filed on 3/28/2017
Annual Report
Document and Entity Information (USD $)
12 Months Ended
Dec. 31, 2016
Mar. 23, 2017
Jun. 30, 2016
Document Type
10-K 
 
 
Amendment Flag
false 
 
 
Document Period End Date
Dec. 31, 2016 
 
 
Trading Symbol
igxt 
 
 
Entity Registrant Name
IntelGenx Technologies Corp. 
 
 
Entity Central Index Key
0001098880 
 
 
Current Fiscal Year End Date
--12-31 
 
 
Entity Filer Category
Smaller Reporting Company 
 
 
Entity Common Stock, Shares Outstanding
 
65,422,021 
 
Entity Current Reporting Status
Yes 
 
 
Entity Voluntary Filers
No 
 
 
Entity Well Known Seasoned Issuer
No 
 
 
Entity Public Float
 
 
$ 26,564,328 
Document Fiscal Year Focus
2016 
 
 
Document Fiscal Period Focus
FY 
 
 
Consolidated Balance Sheets (USD $)
In Thousands, unless otherwise specified
Dec. 31, 2016
Dec. 31, 2015
Current
 
 
Cash and cash equivalents
$ 612 
$ 2,865 
Short-term investments
3,884 
Accounts receivable
1,044 
1,140 
Prepaid expenses
566 
70 
Investment tax credits receivable
246 
97 
Total Current Assets
6,352 
4,172 
Leasehold Improvements and Equipment, net
5,730 
4,238 
Security Deposits
708 
506 
Total Assets
12,790 
8,916 
Current
 
 
Accounts payable and accrued liabilities
897 
1,595 
Current portion of long-term debt
704 
184 
Deferred revenue
3,634 
Total Current Liabilities
5,235 
1,779 
Deferred lease obligations
45 
27 
Long-term debt
2,565 
1,546 
Total Liabilities
7,845 
3,352 
Shareholders' Equity
 
 
Capital Stock, common shares, $0.00001 par value; 100,000,000 shares authorized; 64,812,020 shares issued and outstanding (2015: 63,615,255 common shares)
Additional Paid-in-Capital
23,700 
22,846 
Accumulated Deficit
(17,737)
(16,557)
Accumulated Other Comprehensive Loss
(1,019)
(726)
Total Shareholders' Equity
4,945 
5,564 
Total Liabilities and Stockholders Equity
$ 12,790 
$ 8,916 
Consolidated Balance Sheets (Parenthetical) (USD $)
Dec. 31, 2016
Dec. 31, 2015
Common Stock, Par Value Per Share
$ 0.00001 
$ 0.00001 
Common Stock, Shares Authorized
100,000,000 
100,000,000 
Common Stock, Shares, Issued
64,812,020 
63,615,255 
Common Stock, Shares, Outstanding
64,812,020 
63,615,255 
Consolidated Statement of Shareholders' Equity (USD $)
In Thousands, except Share data
Capital Stock [Member]
Additional Paid-In Capital [Member]
Accumulated Deficit [Member]
Accumulated Other Comprehensive Loss [Member]
Total
Beginning Balance at Dec. 31, 2014
$ 1 
$ 22,654 
$ (17,848)
$ (234)
$ 4,573 
Beginning Balance (Shares) at Dec. 31, 2014
63,465,255 
 
 
 
 
Foreign currency translation adjustment
 
 
 
(492)
(492)
Options exercised
 
62 
 
 
62 
Options exercised (Shares)
150,000 
 
 
 
 
Stock-based compensation
 
130 
 
 
130 
Net loss for the period
 
 
1,291 
 
1,291 
Ending Balance at Dec. 31, 2015
22,846 
(16,557)
(726)
5,564 
Ending Balance (Shares) at Dec. 31, 2015
63,615,255 
 
 
 
 
Foreign currency translation adjustment
 
 
 
(293)
(293)
Warrants exercised
 
596 
 
 
596 
Warrants exercised (Shares)
1,056,765 
 
 
 
 
Options exercised
 
63 
 
 
63 
Options exercised (Shares)
140,000 
 
 
 
 
Stock-based compensation
 
195 
 
 
195 
Net loss for the period
 
 
(1,180)
 
(1,180)
Ending Balance at Dec. 31, 2016
$ 1 
$ 23,700 
$ (17,737)
$ (1,019)
$ 4,945 
Ending Balance (Shares) at Dec. 31, 2016
64,812,020 
 
 
 
 
Consolidated Statement of Comprehensive Income (Loss) (USD $)
In Thousands, except Share data, unless otherwise specified
12 Months Ended
Dec. 31, 2016
Dec. 31, 2015
Revenues
 
 
Royalties
$ 1,041 
$ 981 
License and other revenue
4,179 
4,114 
Total Revenues
5,220 
5,095 
Expenses
 
 
Cost of royalty, license and other revenue
319 
433 
Research and development expense
1,766 
1,033 
Selling, general and administrative expense
3,605 
2,072 
Depreciation of tangible assets
511 
125 
Amortization of intangible assets
46 
Total Expenses
6,201 
3,709 
Operating (Loss) Income
(981)
1,386 
Interest Income
28 
Financing and Interest expense
(203)
(123)
Total Other Income
(199)
(95)
(Loss) Income Before Income Taxes
(1,180)
1,291 
Income taxes
Net (Loss) Income
(1,180)
1,291 
Other Comprehensive Income (Loss)
 
 
Foreign currency translation adjustment
(293)
(492)
Comprehensive (Loss) Income
$ (1,473)
$ 799 
Basic: Weighted Average Number of Shares Outstanding
63,956,543 
63,524,023 
Basic (Loss) Earnings Per Common Share
$ (0.02)
$ 0.01 
Diluted: Weighted Average Number of Shares Outstanding
63,956,543 
70,855,146 
Diluted (Loss) Earnings Per Common Share
$ (0.02)
$ 0.01 
Consolidated Statement of Cash Flows (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2016
Dec. 31, 2015
Funds Provided (Used) - Operating Activities
 
 
Net (Loss) Income
$ (1,180)
$ 1,291 
Amortization and depreciation
511 
171 
Stock-based compensation
195 
130 
Total adjustments
(474)
1,592 
Changes in assets and liabilities
 
 
Accounts receivable
96 
(488)
Prepaid expenses
(496)
26 
Investment tax credits receivable
(149)
11 
Security deposits
(202)
(506)
Accounts payable and accrued liabilities
(698)
1,129 
Deferred revenue
3,634 
(1,245)
Deferred lease obligations
18 
27 
Net change in assets and liabilities
2,203 
(1,046)
Net cash provided by operating activities
1,729 
546 
Financing Activities
 
 
Issuance of term loans
1,940 
1,752 
Repayment of term loans
(675)
(22)
Proceeds from exercise of warrants and stock options
659 
62 
Net cash provided by financing activities
1,924 
1,792 
Investing Activities
 
 
Additions to leasehold improvements and equipment
(2,326)
(3,380)
Acquisitions of short-term investments
(5,236)
Redemptions of short-term investments
1,652 
Net cash used in investing activities
(5,910)
(3,380)
Decrease in Cash and Cash Equivalents
(2,257)
(1,042)
Effect of Foreign Exchange on Cash and Cash Equivalents
(492)
Cash and Cash Equivalents
 
 
Beginning of Year
2,865 
4,399 
End of Year
$ 612 
$ 2,865 
Basis of Presentation
Basis of Presentation [Text Block]
1.

Basis of Presentation

   
 

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

   
 

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

   
 

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

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

Nature of Business

   
 

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

   
 

IntelGenx is a pharmaceutical company focused on the 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 14 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, 10 utilize the VersaFilm™ technology, 3 utilize the VersaTab™ technology, and one utilizes the AdVersa™ technology.

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

The FASB issued Update 2015-16, Business Combinations, which requires that an acquirer recognize adjustments to provisional amounts that are identified during the measurement period in the reporting period in which the adjustment amounts are determined. The amendments in this Update require that the acquirer record, in the same period’s financial statements, the effect on earnings of changes in depreciation, amortization, or other income effects, if any, as a result of the change to the provisional amounts, calculated as if the accounting had been completed at the acquisition date. The amendments in this Update require an entity to present separately on the face of the income statement or disclose in the notes the portion of the amount recorded in current-period earnings by line item that would have been recorded in previous reporting periods if the adjustment to the provisional amounts had been recognized as of the acquisition date. The amendments in this Update apply to all entities that have reported provisional amounts for items in a business combination for which the accounting is incomplete by the end of the reporting period in which the combination occurs and during the measurement period have an adjustment to provisional amounts recognized. For public business entities, the amendments in this Update are effective for fiscal years beginning after December 15, 2015, including interim periods within those fiscal years. The amendments in this Update should be applied prospectively to adjustments to provisional amounts that occur after the effective date of this Update with earlier application permitted for financial statements that have not yet been issued. The adoption of this Statement did not have a material effect on the Company’s financial position or results of operations.

   
 

The FASB issued amendments to ASU 2015-03, Interest – Imputation of Interest, which are intended to simplify the presentation of debt issuance costs. These amendments require that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. The recognition and measurement guidance for debt issuance costs are not affected by the amendments in this ASU. The amendments are effective for public business entities for financial statements issued for fiscal years beginning after December 15, 2015, and interim periods within those fiscal years. The adoption of this Statement did not have a material effect on the Company’s financial position or results of operations.

   
 

The FASB issued amendments to ASU 2015-01, Income Statement – Extraordinary and Unusual Items, eliminating from U.S. GAAP the concept of extraordinary items. Subtopic 225-20, Income Statement - Extraordinary and Unusual Items, required that an entity separately classify, present and disclose extraordinary events and transactions. This ASU will also align more closely U.S. GAAP income statement presentation guidance with IAS 1, Presentation of Financial Statements, which prohibits the presentation and disclosure of extraordinary items. The amendments are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015. The adoption of this Statement did not have a material effect on the Company’s financial position or results of operations.

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

The FASB issued ASU 2014-15, Presentation of Financial Statements – Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern, which is intended to define management’s responsibility to evaluate whether there is substantial doubt about an organization’s ability to continue as a going concern and to provide related footnote disclosures. This ASU provides guidance to an organization’s management, with principles and definitions that are intended to reduce diversity in the timing and content of disclosures that are commonly provided by organizations today in the financial statement footnotes. For public business entities, the amendments in this ASU are effective for fiscal years ending December 31, 2016, including interim periods within fiscal years beginning after December 15, 2016. The adoption of this Statement did not have a material effect on the Company’s financial position or results of operations.

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

Summary of Significant Accounting Policies


 

Revenue Recognition

   
 

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

   
 

IntelGenx has license agreements that specify that certain royalties are earned by the Company on sales of licensed products in the licensed territories. Royalty revenue is recognized on an accrual basis in accordance with the relevant license agreement.

   
 

For the year ended December 31, 2016, the Company recognized royalty revenue earned under a licensing agreement totaling $1,041 thousand compared to $981 thousand in 2015.

   
 

For the year ended December 31, 2016, the Company recognized revenues as a result of sales milestones achieved under a licensing agreement totaling $358 thousand compared to $2,808 thousand in 2015.

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.

Cash and Cash Equivalents

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

Accounts Receivable

The Company accounts for trade receivables at original invoice amount less an estimate made for doubtful receivables based on a review of all outstanding amounts on a quarterly basis. Management determines the allowance for doubtful accounts by regularly evaluating individual customer receivables and considering a customer's financial condition, credit history and current economic conditions. The Company writes off trade receivables when they are deemed uncollectible and records recoveries of trade receivables previously written-off when they receive them. Management has determined that no allowance for doubtful accounts is necessary in order to adequately cover exposure to loss in its December 31, 2016 accounts receivable (2015: $Nil).

Investment Tax Credits

Investment tax credits relating to qualifying expenditures are recognized in the accounts at the time at which the related expenditures are incurred and there is reasonable assurance of their realization. Management has made estimates and assumptions in determining the expenditures eligible for investment tax credits claimed. Investment tax credits received in the year ended December 31, 2016 totaled $Nil (2015: $108 thousand).

Leasehold Improvements and Equipment

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

 

On the declining balance method -

 
 

 

 
 

       Laboratory and office equipment

20%
 

       Computer equipment

30%
 

 

 
 

On the straight-line method -

 
 

 

 
 

       Leasehold improvements

over the lease term
 

       Manufacturing equipment

5 – 10 years

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

Security Deposits

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

Impairment of Long-lived Assets

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

Deferred Lease Obligations

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

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

Foreign Currency Translation

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

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

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

Equity - at historical rates.

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

Income Taxes

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

Unrecognized Tax Benefits

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

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

Share-Based Payments

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

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

(Loss) Earnings Per Share

Basic (loss) earnings 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) earnings per share.

Fair Value Measurements

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

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

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

Fair Value of Financial Instruments

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

Recent Accounting Pronouncements

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

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

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

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

ASU 2016-06 - Derivatives and Hedging (Topic 815) Contingent Put and Call Options in Debt Instruments

The amendments in this Update clarify the requirements for assessing whether contingent call (put) options that can accelerate the payment of principal on debt instruments are clearly and closely related to their debt hosts. An entity performing the assessment under the amendments in this Update is required to assess the embedded call (put) options solely in accordance with the four-step decision sequence.

For public business entities, the amendments in this Update are effective for financial statements issued for fiscal years beginning after December 15, 2016, and interim periods within those fiscal years and should be applied on a retrospective basis.

ASU 2016-09 - Compensation—Stock Compensation (Topic 718) Improvements to Employee Share-Based Payment Accounting

FASB issued this Update as part of its Simplification Initiative. The areas for simplification in this Update involve several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows.

For public business entities, the amendments in this Update are effective for annual periods beginning after December 15, 2016, and interim periods within those annual periods. Early adoption is permitted for any entity in any interim or annual period, with any adjustments reflected as of the beginning of the fiscal year of adoption. The Company is currently evaluating the impact of this Statement on its consolidated financial statements.

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

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

  1.

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

     
  2.

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

     
  3.

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

     
  4.

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

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

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

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

These amendments are effective for a public business entity for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years.

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

Revenue from Contracts with Customers (Topic 606):

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

  Step 1: Identify the contract(s) with a customer.
  Step 2: Identify the performance obligations in the contract.
  Step 3: Determine the transaction price.
  Step 4: Allocate the transaction price to the performance obligations in the contract.
  Step 5: Recognize revenue when (or as) the entity satisfies a performance obligation.

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

  1.

ASU 2016-08: Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net) which was issued to add clarification to the implementation guidance on principle versus agent considerations. This amendment does not provide any changes to the previously issued ASU No. 2014-09 and is effective for the same reporting period which was deferred by one year in ASU 2015-14: Revenue From Contracts With Customers (Topic 606), Deferral of the Effective Date.

     
  2.

ASU 2016-10: Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing which was issued to clarifying the following two aspects of topic 606; identifying performance obligations and the licensing implementation guidance. This amendment does not provide any changes to the previously issued ASU No. 2014-09 and is effective for the same reporting period which was deferred by one year in ASU 2015-14: Revenue From Contracts With Customers (Topic 606), Deferral of the Effective Date.

  3.

ASU 2016-11 Revenue Recognition (Topic 605) and Derivatives and Hedging (Topic 815): Rescission of SEC Guidance Because of Accounting Standards Updates 2014-09 and 2014-16 Pursuant to Staff Announcements at the March 3, 2016 EITF Meeting. With this amendment, the SEC Staff is rescinding the following SEC Staff Observer comments that are codified in Topic 605, Revenue Recognition, and Topic 932, Extractive Activities—Oil and Gas, effective upon adoption of Topic 606. This amendment is effective immediately.

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

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

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

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

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

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

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

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

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

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

For public business entities, the amendments are effective for financial statements issued for annual periods beginning after December 15, 2016, and interim periods within those annual periods. The Company is currently evaluating the impact of this Statement on its consolidated financial statements.

Short-term investments
Short-term investments [Text Block]
5.

Short-term investments

   
 

As at December 31, 2016, short-term investments consisting of mutual funds (CAD$3 million) and term deposits ($1,650 million) are with a Canadian financial institution having a high credit rating. The term deposits have a maturity date of August 17, 2017, bear interest at 0.40% and are cashable at any time.

Leasehold Improvements and Equipment
Leasehold Improvements and Equipment [Text Block]
6.

Leasehold improvements and Equipment


 

 

              2016     2015  
 

 

        Accumulated     Net Carrying     Net Carrying  
 

 

  Cost     Depreciation     Amount     Amount  
 

 

                       
 

Manufacturing equipment

$ 2,550   $ 121   $ 2,429   $ 1,050  
 

Laboratory and office equipment

  1,222     415     807     821  
 

Computer equipment

  66     43     23     17  
 

Leasehold improvements

  2,786     315     2,471     2,350  
 

 

                       
 

 

$ 6,624   $ 894   $ 5,730   $ 4,238  

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

Bank indebtedness
Bank indebtedness [Text Block]
7.

Bank Indebtedness

   
 

The Company's credit facility is subject to review annually and consists of an operating demand line of credit of up to CAD$250 thousand and corporate credits cards of up to CAD$75 thousand. Borrowings under the operating demand line of credit bear interest at the Bank’s prime lending rate plus 2%. The credit facility and term loan (see note 9) are secured by a first ranking movable hypothec on all present and future movable property of the Company and a 50% guarantee by Export Development Canada, a Canadian Crown corporation export credit agency. The terms of the banking agreement require the Company to comply with certain debt service coverage and debt to net worth financial covenants on an annual basis at the end of the Company’s fiscal year. As at December 31, 2016, 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.

Deferred revenue
Deferred revenue [Text Block]
8.

Deferred Revenue

   
 

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

   
 

The deferred revenue represents the payment received for the royalty on future sales in the amount of $6 milliion less the Q2 royalties recognized in the second quarter in the amount of $352 thousand, less the amount recognized in other revenue during the six-month period ended December 31, 2016. The deferred revenue will be recognized as other revenue on a straight-line basis until December 31, 2017.

   
 

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

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

Long-term debt

   
 

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


 

 

  December 31, 2016     December 31, 2015  
 

 

  $     $  
 

 

           
 

 

           
 

Term loan facility

  2,636     1,188  
 

Secured loan

  633     542  
 

Total debt

  3,269     1,730  
 

 

           
 

Less: current portion

  704     184  
 

 

           
 

Total long-term debt

  2,565     1,546  

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

The secured loan has a principal balance authorized of CAD$1 million bearing interest at prime plus 7.3%, reimbursable in monthly principal payments of CAD$17 thousand from January 2017 to March 2021. The loan is secured by a second ranking on all present and future property of the Company. The terms of the banking agreement require the Company to comply with certain debt service coverage and debt to net worth financial covenants on an annual basis at the end of the Company’s fiscal year. As at December 31, 2016, 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 five years are as follows:

  2017 $704 (CAD945)  
  2018 704 (CAD945)  
  2019 704 (CAD945)  
  2020 704 (CAD945)  
  2021 453 (CAD610)  
Commitments
Commitments [Text Block]
10.

Commitments

   
 

On April 24, 2015 the Company entered into an agreement to lease approximately 17,000 square feet in a property located at 6420 Abrams, St-Laurent, Québec. The Lease has a 10 year and 6 -month term commencing September 1, 2015. IntelGenx has retained two options to extend the lease, with each option being for an additional five years. Under the terms of the lease IntelGenx is required to pay base rent of approximately CAD$110 thousand (approximately $82 thousand) per year, which will increase at a rate of CAD$0.25 ($0.19) per square foot every two years.

The aggregate minimum rentals, exclusive of other occupancy charges, for property leases expiring in 2026, are approximately $824 thousand, as follows:

  2017 $83  
  2018 85  
  2019 87  
  2020 89  
  2021 90  
  Thereafter 390  
Capital Stock
Capital Stock [Text Block]
11.

Capital Stock


 

 

  2016     2015  
 

 

           
 

Authorized -

           
 

 

           
 

100,000,000 common shares of $0.00001 par value

           
 

   20,000,000 preferred shares of $0.00001 par value

           
 

 

           
 

Issued -

           
 

 

           
 

   64,812,020 (December 31, 2015: 63,615,255) common shares

$ 1   $ 1  

Stock options

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

During the year ended December 31, 2015 a total of 150,000 stock options were exercised for 150,000 common shares having a par value of $0 thousand in aggregate, for cash consideration of $62 thousand, resulting in an increase in additional paid-in capital of $62 thousand.

Stock-based compensation of $195 thousand and $130 thousand was recorded during the year ended December 31, 2016 and 2015 respectively. An amount of $193 thousand expensed in 2016 relates to stock options granted to employees and directors and an amount of $2 thousand relates to stock options granted to a consultant. The entire amounts expensed in 2015 relate to stock options granted to employees and directors. As at December 31, 2016 the Company has $320 thousand (2015 - $158 thousand) of unrecognized stock-based compensation, of which $11 thousand (2015 – $nil) relates to options granted to a consultant.

Warrants

In the year ended December 31, 2016 a total of 1,056,765 warrants were exercised for 1,056,765 common shares having a par value of $Nil in aggregate, for cash consideration of approximately $596 thousand, resulting in an increase in additional paid-in capital of approximately $596 thousand. No warrants were exercised during the year ended December 31, 2015.

Income Tax
Income Tax [Text Block]
13.

Income Taxes

   
 

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


 

                                                                                                                                                                                       

  2016     2015  
 

Statutory income taxes

$ (305 ) $ 387  
 

Net operating losses for which no tax benefits have been recorded

  201     -  
 

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

  -     (484 )
 

Deficiency of depreciation over capital cost allowance

  (206 )   (98 )
 

Non-deductible expenses

  105     44  
 

Undeducted research and development expenses

  245     178  
 

Investment tax credit

  (40 )   (27 )
 

 

           
 

 

           
    $ -   $   -  

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

 

 

  2016     2015  
 

Leasehold improvements and equipment

$ 201   $ 117  
 

Net operating losses carryforward

  2,062     1,770  
 

Undeducted research and development expenses

  1,501     1,274  
 

Non-refundable tax credits carryforward

  1,190     1,022  
 

 

           
 

 

  4,954     4,183  
 

 

           
 

Valuation allowance

  (4,954 )   (4,183 )
 

 

$ -   $   -  

As at December 31, 2016, 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 2017, 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 $7,585 thousand (2015: $6,462 thousand) and $7,763 thousand (2015: $6,725 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 2036. A portion of the net operating losses may expire before they can be utilized.

As at December 31, 2016, the Company had non-refundable tax credits of $1,190 thousand (2015: $1,022 thousand) of which $8 thousand is expiring in 2026, $10 thousand is expiring in 2027, $168 thousand is expiring in 2028, $147 thousand is expiring in 2029, $126 thousand is expiring in 2030, $133 thousand is expiring in 2031, $167 thousand is expiring in 2032 and $111 thousand is expiring in 2033, $84 thousand expiring in 2034 and $99 thousand is expiring in 2035 and $137 thousand expiring in 2036 and undeducted research and development expenses of $5,438 thousand (2015: $4,563 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, 2016:

  Tax Jurisdictions   Tax Years
  Federal - Canada   2013 and onward
  Provincial - Quebec   2013 and onward
  Federal - USA   2013 onward
Statement of Cash Flows Information
Statement of Cash Flows Information [Text Block]
14.

Statement of Cash Flows Information


 

In US$ thousands

  2016     2015  
 

 

           
 

Additional Cash Flow Information:

           
 

 

           
 

Interest paid

$ 176   $ 23  
Related Party Transactions
Related Party Transactions [Text Block]
15.

Related party transactions

   
 

Included in management salaries are $2 thousand (2015 - $3 thousand) for options granted to the Chief Executive Officer, $60 thousand (2015 - $39 thousand) for options granted to the Chief Financial Officer, $12 thousand (2015-$9 thousand) for options granted to the Vice President, Operations, $5 thousand (2015 - $nil) for options granted to the Vice-President, Research and Development, $21 thousand (2015 - $nil) for options granted to the former Vice President, Corporate Development, and $8 thousand for options granted to Vice- President, Business and Corporate Development (2015 – $nil) under the 2006 or 2016 Stock Option Plans and $52 thousand (2015 - $70 thousand) for options granted to non-employee directors.

   
 

Included in general and administrative expenses are director fees of $184 thousand (2015: $179 thousand). During the year a non-employee director rendered consulting services amounting to $14 thousand (2015 - $nil).

   
 

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

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

Basic and Diluted Earnings (Loss) Per Common Share

   
 

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

Subsequent Event
Subsequent Event [Text Block]
17.

Subsequent event

   
 

Subsequent to the end of the year, 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 CA$74 thousand (approximately $55 thousand) per year, which will increase at a rate of CA$0.25 ($0.19) per square foot every two years. IntelGenx plans to use the newly leased space to expand its manufacture of oral film VersaFilm TM .

Summary of Significant Accounting Policies (Policies)
 

Revenue Recognition

   
 

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

   
 

IntelGenx has license agreements that specify that certain royalties are earned by the Company on sales of licensed products in the licensed territories. Royalty revenue is recognized on an accrual basis in accordance with the relevant license agreement.

   
 

For the year ended December 31, 2016, the Company recognized royalty revenue earned under a licensing agreement totaling $1,041 thousand compared to $981 thousand in 2015.

   
 

For the year ended December 31, 2016, the Company recognized revenues as a result of sales milestones achieved under a licensing agreement totaling $358 thousand compared to $2,808 thousand in 2015.

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.

Cash and Cash Equivalents

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

Accounts Receivable

The Company accounts for trade receivables at original invoice amount less an estimate made for doubtful receivables based on a review of all outstanding amounts on a quarterly basis. Management determines the allowance for doubtful accounts by regularly evaluating individual customer receivables and considering a customer's financial condition, credit history and current economic conditions. The Company writes off trade receivables when they are deemed uncollectible and records recoveries of trade receivables previously written-off when they receive them. Management has determined that no allowance for doubtful accounts is necessary in order to adequately cover exposure to loss in its December 31, 2016 accounts receivable (2015: $Nil).

Investment Tax Credits

Investment tax credits relating to qualifying expenditures are recognized in the accounts at the time at which the related expenditures are incurred and there is reasonable assurance of their realization. Management has made estimates and assumptions in determining the expenditures eligible for investment tax credits claimed. Investment tax credits received in the year ended December 31, 2016 totaled $Nil (2015: $108 thousand).

Leasehold Improvements and Equipment

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

 

On the declining balance method -

 
 

 

 
 

       Laboratory and office equipment

20%
 

       Computer equipment

30%
 

 

 
 

On the straight-line method -

 
 

 

 
 

       Leasehold improvements

over the lease term
 

       Manufacturing equipment

5 – 10 years

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

Security Deposits

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

Impairment of Long-lived Assets

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

Deferred Lease Obligations

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

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

Foreign Currency Translation

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

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

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

Equity - at historical rates.

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

Income Taxes

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

Unrecognized Tax Benefits

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

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

Share-Based Payments

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

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

(Loss) Earnings Per Share

Basic (loss) earnings 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) earnings per share.

Fair Value Measurements

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

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

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

Fair Value of Financial Instruments

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

Recent Accounting Pronouncements

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

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

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

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

ASU 2016-06 - Derivatives and Hedging (Topic 815) Contingent Put and Call Options in Debt Instruments

The amendments in this Update clarify the requirements for assessing whether contingent call (put) options that can accelerate the payment of principal on debt instruments are clearly and closely related to their debt hosts. An entity performing the assessment under the amendments in this Update is required to assess the embedded call (put) options solely in accordance with the four-step decision sequence.

For public business entities, the amendments in this Update are effective for financial statements issued for fiscal years beginning after December 15, 2016, and interim periods within those fiscal years and should be applied on a retrospective basis.

ASU 2016-09 - Compensation—Stock Compensation (Topic 718) Improvements to Employee Share-Based Payment Accounting

FASB issued this Update as part of its Simplification Initiative. The areas for simplification in this Update involve several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows.

For public business entities, the amendments in this Update are effective for annual periods beginning after December 15, 2016, and interim periods within those annual periods. Early adoption is permitted for any entity in any interim or annual period, with any adjustments reflected as of the beginning of the fiscal year of adoption. The Company is currently evaluating the impact of this Statement on its consolidated financial statements.

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

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

  1.

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

     
  2.

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

     
  3.

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

     
  4.

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

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

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

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

These amendments are effective for a public business entity for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years.

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

Revenue from Contracts with Customers (Topic 606):

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

  Step 1: Identify the contract(s) with a customer.
  Step 2: Identify the performance obligations in the contract.
  Step 3: Determine the transaction price.
  Step 4: Allocate the transaction price to the performance obligations in the contract.
  Step 5: Recognize revenue when (or as) the entity satisfies a performance obligation.

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

  1.

ASU 2016-08: Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net) which was issued to add clarification to the implementation guidance on principle versus agent considerations. This amendment does not provide any changes to the previously issued ASU No. 2014-09 and is effective for the same reporting period which was deferred by one year in ASU 2015-14: Revenue From Contracts With Customers (Topic 606), Deferral of the Effective Date.

     
  2.

ASU 2016-10: Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing which was issued to clarifying the following two aspects of topic 606; identifying performance obligations and the licensing implementation guidance. This amendment does not provide any changes to the previously issued ASU No. 2014-09 and is effective for the same reporting period which was deferred by one year in ASU 2015-14: Revenue From Contracts With Customers (Topic 606), Deferral of the Effective Date.

  3.

ASU 2016-11 Revenue Recognition (Topic 605) and Derivatives and Hedging (Topic 815): Rescission of SEC Guidance Because of Accounting Standards Updates 2014-09 and 2014-16 Pursuant to Staff Announcements at the March 3, 2016 EITF Meeting. With this amendment, the SEC Staff is rescinding the following SEC Staff Observer comments that are codified in Topic 605, Revenue Recognition, and Topic 932, Extractive Activities—Oil and Gas, effective upon adoption of Topic 606. This amendment is effective immediately.

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

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

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

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

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

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

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

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

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

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

For public business entities, the amendments are effective for financial statements issued for annual periods beginning after December 15, 2016, and interim periods within those annual periods. The Company is currently evaluating the impact of this Statement on its consolidated financial statements.

Summary of Significant Accounting Policies (Tables)
Schedule of Estimated Useful Lives of Leasehold Improvements and Equipment [Table Text Block]
 

On the declining balance method -

 
 

 

 
 

       Laboratory and office equipment

20%
 

       Computer equipment

30%
 

 

 
 

On the straight-line method -

 
 

 

 
 

       Leasehold improvements

over the lease term
 

       Manufacturing equipment

5 – 10 years
Leasehold Improvements and Equipment (Tables)
Schedule of Leasehold Improvements and Equipment [Table Text Block]
 

 

              2016     2015  
 

 

        Accumulated     Net Carrying     Net Carrying  
 

 

  Cost     Depreciation     Amount     Amount  
 

 

                       
 

Manufacturing equipment

$ 2,550   $ 121   $ 2,429   $ 1,050  
 

Laboratory and office equipment

  1,222     415     807     821  
 

Computer equipment

  66     43     23     17  
 

Leasehold improvements

  2,786     315     2,471     2,350  
 

 

                       
 

 

$ 6,624   $ 894   $ 5,730   $ 4,238  
Long-term debt (Tables)
Term loan [Table Text Block]
 

 

  December 31, 2016     December 31, 2015  
 

 

  $     $  
 

 

           
 

 

           
 

Term loan facility

  2,636     1,188  
 

Secured loan

  633     542  
 

Total debt

  3,269     1,730  
 

 

           
 

Less: current portion

  704     184  
 

 

           
 

Total long-term debt

  2,565     1,546  
Commitments (Tables)
Schedule of future minimum payments under operating leases [Table Text Block]
  2017 $83  
  2018 85  
  2019 87  
  2020 89  
  2021 90  
  Thereafter 390  
Capital Stock (Tables)
Schedule of Stock by Class [Table Text Block]
 

 

  2016     2015  
 

 

           
 

Authorized -

           
 

 

           
 

100,000,000 common shares of $0.00001 par value

           
 

   20,000,000 preferred shares of $0.00001 par value

           
 

 

           
 

Issued -

           
 

 

           
 

   64,812,020 (December 31, 2015: 63,615,255) common shares

$ 1   $ 1  
Income Tax (Tables)
 

                                                                                                                                                                                       

  2016     2015  
 

Statutory income taxes

$ (305 ) $ 387  
 

Net operating losses for which no tax benefits have been recorded

  201     -  
 

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

  -     (484 )
 

Deficiency of depreciation over capital cost allowance

  (206 )   (98 )
 

Non-deductible expenses

  105     44  
 

Undeducted research and development expenses

  245     178  
 

Investment tax credit

  (40 )   (27 )
 

 

           
 

 

           
    $ -   $   -  
 

 

  2016     2015  
 

Leasehold improvements and equipment

$ 201   $ 117  
 

Net operating losses carryforward

  2,062     1,770  
 

Undeducted research and development expenses

  1,501     1,274  
 

Non-refundable tax credits carryforward

  1,190     1,022  
 

 

           
 

 

  4,954     4,183  
 

 

           
 

Valuation allowance

  (4,954 )   (4,183 )
 

 

$ -   $   -  
  Tax Jurisdictions   Tax Years
  Federal - Canada   2013 and onward
  Provincial - Quebec   2013 and onward
  Federal - USA   2013 onward
Statement of Cash Flows Information (Tables)
Schedule of Cash Flow, Supplemental Disclosures [Table Text Block]
 

In US$ thousands

  2016     2015  
 

 

           
 

Additional Cash Flow Information:

           
 

 

           
 

Interest paid

$ 176   $ 23  
Nature of Business (Narrative) (Details)
12 Months Ended
Dec. 31, 2016
Nature Of Business 1
14 
Nature Of Business 2
10 
Nature Of Business 3
Summary of Significant Accounting Policies (Narrative) (Details) (USD $)
12 Months Ended
Dec. 31, 2016
Summary Of Significant Accounting Policies 1
$ 1,041,000 
Summary Of Significant Accounting Policies 2
981,000 
Summary Of Significant Accounting Policies 3
358,000 
Summary Of Significant Accounting Policies 4
2,808,000 
Summary Of Significant Accounting Policies 5
Summary Of Significant Accounting Policies 6
Summary Of Significant Accounting Policies 7
$ 108,000 
Summary Of Significant Accounting Policies 8
50.00% 
Short-term investments (Narrative) (Details)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2016
USD ($)
Dec. 31, 2016
CAD ($)
Short-term Investments 1
 
$ 3 
Short-term Investments 2
$ 1,650 
 
Short-term Investments 3
0.40% 
0.40% 
Leasehold Improvements and Equipment (Narrative) (Details) (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2016
Leasehold Improvements And Equipment 1
$ 125 
Bank indebtedness (Narrative) (Details) (CAD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2016
Bank Indebtedness 1
$ 250 
Bank Indebtedness 2
$ 75 
Bank Indebtedness 3
2.00% 
Bank Indebtedness 4
50.00% 
Deferred revenue (Narrative) (Details) (USD $)
12 Months Ended
Dec. 31, 2016
Deferred Revenue 1
$ 6,000,000 
Deferred Revenue 2
6,000,000 
Deferred Revenue 3
100.00% 
Deferred Revenue 4
100.00% 
Deferred Revenue 5
2,000,000 
Deferred Revenue 6
15,000,000 
Deferred Revenue 7
35.00% 
Deferred Revenue 8
Deferred Revenue 9
$ 352,000 
Deferred Revenue 10
10.00% 
Long-term debt (Narrative) (Details) (CAD $)
12 Months Ended
Dec. 31, 2016
Long-term Debt 1
$ 4,000,000 
Long-term Debt 2
2.50% 
Long-term Debt 3
1,000,000 
Long-term Debt 4
7.30% 
Long-term Debt 5
$ 17,000 
Commitments (Narrative) (Details)
12 Months Ended
Dec. 31, 2016
USD ($)
Y
Dec. 31, 2016
CAD ($)
Commitments 1
17,000 
17,000 
Commitments 2
6,420 
6,420 
Commitments 3
10 
10 
Commitments 4
Commitments 5
 
$ 110,000 
Commitments 6
82,000 
 
Commitments 7
 
0.25 
Commitments 8
0.19 
 
Commitments 9
$ 824,000 
 
Capital Stock (Narrative) (Details) (USD $)
12 Months Ended
Dec. 31, 2016
Capital Stock 1
140,000 
Capital Stock 2
140,000 
Capital Stock 3
$ 0 
Capital Stock 4
63,000 
Capital Stock 5
63,000 
Capital Stock 6
150,000 
Capital Stock 7
150,000 
Capital Stock 8
Capital Stock 9
62,000 
Capital Stock 10
62,000 
Capital Stock 11
195,000 
Capital Stock 12
130,000 
Capital Stock 13
193,000 
Capital Stock 14
2,000 
Capital Stock 15
320,000 
Capital Stock 16
158,000 
Capital Stock 17
11,000 
Capital Stock 18
Capital Stock 19
1,056,765 
Capital Stock 20
1,056,765 
Capital Stock 21
Capital Stock 22
596,000 
Capital Stock 23
$ 596,000 
Income Tax (Narrative) (Details) (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2016
Income Tax 1
$ 7,585 
Income Tax 2
6,462 
Income Tax 3
7,763 
Income Tax 4
6,725 
Income Tax 5
1,190 
Income Tax 6
1,022 
Income Tax 7
Income Tax 8
10 
Income Tax 9
168 
Income Tax 10
147 
Income Tax 11
126 
Income Tax 12
133 
Income Tax 13
167 
Income Tax 14
111 
Income Tax 15
84 
Income Tax 16
99 
Income Tax 17
137 
Income Tax 18
5,438 
Income Tax 19
$ 4,563 
Related Party Transactions (Narrative) (Details) (USD $)
12 Months Ended
Dec. 31, 2016
Related Party Transactions 1
$ 2,000 
Related Party Transactions 2
3,000 
Related Party Transactions 3
60,000 
Related Party Transactions 4
39,000 
Related Party Transactions 5
12,000 
Related Party Transactions 6
9,000 
Related Party Transactions 7
5,000 
Related Party Transactions 8
Related Party Transactions 9
21,000 
Related Party Transactions 10
Related Party Transactions 11
8,000 
Related Party Transactions 12
Related Party Transactions 13
52,000 
Related Party Transactions 14
70,000 
Related Party Transactions 15
184,000 
Related Party Transactions 16
179,000 
Related Party Transactions 17
14,000 
Related Party Transactions 18
$ 0 
Subsequent Event (Narrative) (Details)
12 Months Ended
Dec. 31, 2016
USD ($)
Y
Dec. 31, 2016
CAD ($)
Subsequent Event 1
11,000 
11,000 
Subsequent Event 2
Subsequent Event 3
Subsequent Event 4
 
$ 74,000 
Subsequent Event 5
55,000 
 
Subsequent Event 6
 
0.25 
Subsequent Event 7
$ 0.19 
 
Schedule of Estimated Useful Lives of Leasehold Improvements and Equipment (Details) (USD $)
12 Months Ended
Dec. 31, 2016
Y
Summary Of Significant Accounting Policies Schedule Of Estimated Useful Lives Of Leasehold Improvements And Equipment [table Text Block] 1
20.00% 
Summary Of Significant Accounting Policies Schedule Of Estimated Useful Lives Of Leasehold Improvements And Equipment [table Text Block] 2
30.00% 
Summary Of Significant Accounting Policies Schedule Of Estimated Useful Lives Of Leasehold Improvements And Equipment [table Text Block] 3
$ 5 
Summary Of Significant Accounting Policies Schedule Of Estimated Useful Lives Of Leasehold Improvements And Equipment [table Text Block] 4
10 
Schedule of Leasehold Improvements and Equipment (Details) (USD $)
12 Months Ended
Dec. 31, 2016
Leasehold Improvements And Equipment Schedule Of Leasehold Improvements And Equipment 1
$ 2,550 
Leasehold Improvements And Equipment Schedule Of Leasehold Improvements And Equipment 2
121 
Leasehold Improvements And Equipment Schedule Of Leasehold Improvements And Equipment 3
2,429 
Leasehold Improvements And Equipment Schedule Of Leasehold Improvements And Equipment 4
1,050 
Leasehold Improvements And Equipment Schedule Of Leasehold Improvements And Equipment 5
1,222 
Leasehold Improvements And Equipment Schedule Of Leasehold Improvements And Equipment 6
415 
Leasehold Improvements And Equipment Schedule Of Leasehold Improvements And Equipment 7
807 
Leasehold Improvements And Equipment Schedule Of Leasehold Improvements And Equipment 8
821 
Leasehold Improvements And Equipment Schedule Of Leasehold Improvements And Equipment 9
66 
Leasehold Improvements And Equipment Schedule Of Leasehold Improvements And Equipment 10
43 
Leasehold Improvements And Equipment Schedule Of Leasehold Improvements And Equipment 11
23 
Leasehold Improvements And Equipment Schedule Of Leasehold Improvements And Equipment 12
17 
Leasehold Improvements And Equipment Schedule Of Leasehold Improvements And Equipment 13
2,786 
Leasehold Improvements And Equipment Schedule Of Leasehold Improvements And Equipment 14
315 
Leasehold Improvements And Equipment Schedule Of Leasehold Improvements And Equipment 15
2,471 
Leasehold Improvements And Equipment Schedule Of Leasehold Improvements And Equipment 16
2,350 
Leasehold Improvements And Equipment Schedule Of Leasehold Improvements And Equipment 17
6,624 
Leasehold Improvements And Equipment Schedule Of Leasehold Improvements And Equipment 18
894 
Leasehold Improvements And Equipment Schedule Of Leasehold Improvements And Equipment 19
5,730 
Leasehold Improvements And Equipment Schedule Of Leasehold Improvements And Equipment 20
$ 4,238 
Term loan (Details) (USD $)
12 Months Ended
Dec. 31, 2016
Long-term Debt Term Loan 1
$ 2,636 
Long-term Debt Term Loan 2
1,188 
Long-term Debt Term Loan 3
633 
Long-term Debt Term Loan 4
542 
Long-term Debt Term Loan 5
3,269 
Long-term Debt Term Loan 6
1,730 
Long-term Debt Term Loan 7
704 
Long-term Debt Term Loan 8
184 
Long-term Debt Term Loan 9
2,565 
Long-term Debt Term Loan 10
$ 1,546 
Schedule of future minimum payments under operating leases (Details) (USD $)
12 Months Ended
Dec. 31, 2016
Commitments Schedule Of Future Minimum Payments Under Operating Leases 1
$ 83 
Commitments Schedule Of Future Minimum Payments Under Operating Leases 2
85 
Commitments Schedule Of Future Minimum Payments Under Operating Leases 3
87 
Commitments Schedule Of Future Minimum Payments Under Operating Leases 4
89 
Commitments Schedule Of Future Minimum Payments Under Operating Leases 5
90 
Commitments Schedule Of Future Minimum Payments Under Operating Leases 6
$ 390 
Schedule of Stock by Class (Details) (USD $)
12 Months Ended
Dec. 31, 2016
Capital Stock Schedule Of Stock By Class 1
100,000,000 
Capital Stock Schedule Of Stock By Class 2
$ 0.00001 
Capital Stock Schedule Of Stock By Class 3
20,000,000 
Capital Stock Schedule Of Stock By Class 4
0.00001 
Capital Stock Schedule Of Stock By Class 5
64,812,020 
Capital Stock Schedule Of Stock By Class 6
63,615,255 
Capital Stock Schedule Of Stock By Class 7
Capital Stock Schedule Of Stock By Class 8
$ 1 
Schedule of 200,000 Stock Options Valuation - April 2, 2015 (Details) (USD $)
12 Months Ended
Dec. 31, 2016
Y
Additional Paid-in Capital Schedule Of 200,000 Stock Options Valuation - April 2, 2015 1
66.00% 
Additional Paid-in Capital Schedule Of 200,000 Stock Options Valuation - April 2, 2015 2
2.5 
Additional Paid-in Capital Schedule Of 200,000 Stock Options Valuation - April 2, 2015 3
0.87% 
Additional Paid-in Capital Schedule Of 200,000 Stock Options Valuation - April 2, 2015 4
$ 0 
Schedule of 100,000 Stock Options Valuation - April 2, 2015 (Details) (USD $)
12 Months Ended
Dec. 31, 2016
Y
Additional Paid-in Capital Schedule Of 100,000 Stock Options Valuation - April 2, 2015 1
62.00% 
Additional Paid-in Capital Schedule Of 100,000 Stock Options Valuation - April 2, 2015 2
3.13 
Additional Paid-in Capital Schedule Of 100,000 Stock Options Valuation - April 2, 2015 3
0.87% 
Additional Paid-in Capital Schedule Of 100,000 Stock Options Valuation - April 2, 2015 4
$ 0 
Schedule of 600,000 Stock Options Valuation - July 20, 2015 (Details) (USD $)
12 Months Ended
Dec. 31, 2016
Y
Additional Paid-in Capital Schedule Of 600,000 Stock Options Valuation - July 20, 2015 1
63.00% 
Additional Paid-in Capital Schedule Of 600,000 Stock Options Valuation - July 20, 2015 2
3.13 
Additional Paid-in Capital Schedule Of 600,000 Stock Options Valuation - July 20, 2015 3
1.09% 
Additional Paid-in Capital Schedule Of 600,000 Stock Options Valuation - July 20, 2015 4
$ 0 
Schedule of 75,000 Stock Options Valuation - August 13, 2015 (Details) (USD $)
12 Months Ended
Dec. 31, 2016
Y
Additional Paid-in Capital Schedule Of 75,000 Stock Options Valuation - August 13, 2015 1
62.00% 
Additional Paid-in Capital Schedule Of 75,000 Stock Options Valuation - August 13, 2015 2
3.13 
Additional Paid-in Capital Schedule Of 75,000 Stock Options Valuation - August 13, 2015 3
1.06% 
Additional Paid-in Capital Schedule Of 75,000 Stock Options Valuation - August 13, 2015 4
$ 0 
Schedule of 150,000 Stock Options Valuation - December 14, 2015 (Details) (USD $)
12 Months Ended
Dec. 31, 2016
Y
Additional Paid-in Capital Schedule Of 150,000 Stock Options Valuation - December 14, 2015 1
63.00% 
Additional Paid-in Capital Schedule Of 150,000 Stock Options Valuation - December 14, 2015 2
3.13 
Additional Paid-in Capital Schedule Of 150,000 Stock Options Valuation - December 14, 2015 3
1.25% 
Additional Paid-in Capital Schedule Of 150,000 Stock Options Valuation - December 14, 2015 4
$ 0 
Schedule of 225,000 Stock Options Valuation January 19, 2016 (Details) (USD $)
12 Months Ended
Dec. 31, 2016
Y
Additional Paid-in Capital Schedule Of 225,000 Stock Options Valuation January 19, 2016 1
63.00% 
Additional Paid-in Capital Schedule Of 225,000 Stock Options Valuation January 19, 2016 2
3.13 
Additional Paid-in Capital Schedule Of 225,000 Stock Options Valuation January 19, 2016 3
1.11% 
Additional Paid-in Capital Schedule Of 225,000 Stock Options Valuation January 19, 2016 4
$ 0 
Schedule of 250,000 Stock Options Valuation January 19, 2016 (Details) (USD $)
12 Months Ended
Dec. 31, 2016
Y
Additional Paid-in Capital Schedule Of 250,000 Stock Options Valuation January 19, 2016 1
66.00% 
Additional Paid-in Capital Schedule Of 250,000 Stock Options Valuation January 19, 2016 2
2.5 
Additional Paid-in Capital Schedule Of 250,000 Stock Options Valuation January 19, 2016 3
1.11% 
Additional Paid-in Capital Schedule Of 250,000 Stock Options Valuation January 19, 2016 4
$ 0 
Schedule of 200,000 Stock Options Valuation September 15, 2016 (Details) (USD $)
12 Months Ended
Dec. 31, 2016
Y
Additional Paid-in Capital Schedule Of 200,000 Stock Options Valuation September 15, 2016 1
65.00% 
Additional Paid-in Capital Schedule Of 200,000 Stock Options Valuation September 15, 2016 2
5.63 
Additional Paid-in Capital Schedule Of 200,000 Stock Options Valuation September 15, 2016 3
1.30% 
Additional Paid-in Capital Schedule Of 200,000 Stock Options Valuation September 15, 2016 4
$ 0 
Schedule of 50,000 Stock Options Valuation September 15, 2016 (Details) (USD $)
12 Months Ended
Dec. 31, 2016
Y
Additional Paid-in Capital Schedule Of 50,000 Stock Options Valuation September 15, 2016 1
64.00% 
Additional Paid-in Capital Schedule Of 50,000 Stock Options Valuation September 15, 2016 2
3.13 
Additional Paid-in Capital Schedule Of 50,000 Stock Options Valuation September 15, 2016 3
0.87% 
Additional Paid-in Capital Schedule Of 50,000 Stock Options Valuation September 15, 2016 4
$ 0 
Schedule of 225,000 Stock Options Valuation - December 27, 2016 (Details) (USD $)
12 Months Ended
Dec. 31, 2016
Y
Additional Paid-in Capital Schedule Of 225,000 Stock Options Valuation - December 27, 2016 1
63.00% 
Additional Paid-in Capital Schedule Of 225,000 Stock Options Valuation - December 27, 2016 2
5.63 
Additional Paid-in Capital Schedule Of 225,000 Stock Options Valuation - December 27, 2016 3
2.20% 
Additional Paid-in Capital Schedule Of 225,000 Stock Options Valuation - December 27, 2016 4
$ 0 
Schedule of Stock Option Activity to Employees and Directors[Table Text Block] (Details) (USD $)
12 Months Ended
Dec. 31, 2016
Additional Paid-in Capital Schedule Of Stock Option Activity To Employees And Director 1
$ 1,130,000 
Additional Paid-in Capital Schedule Of Stock Option Activity To Employees And Director 2
0.54 
Additional Paid-in Capital Schedule Of Stock Option Activity To Employees And Director 3
1,125,000 
Additional Paid-in Capital Schedule Of Stock Option Activity To Employees And Director 4
0.58 
Additional Paid-in Capital Schedule Of Stock Option Activity To Employees And Director 5
(410,000)
Additional Paid-in Capital Schedule Of Stock Option Activity To Employees And Director 6
(0.59)
Additional Paid-in Capital Schedule Of Stock Option Activity To Employees And Director 7
(25,000)
Additional Paid-in Capital Schedule Of Stock Option Activity To Employees And Director 8
(0.45)
Additional Paid-in Capital Schedule Of Stock Option Activity To Employees And Director 9
(150,000)
Additional Paid-in Capital Schedule Of Stock Option Activity To Employees And Director 10
(0.41)
Additional Paid-in Capital Schedule Of Stock Option Activity To Employees And Director 11
1,670,000 
Additional Paid-in Capital Schedule Of Stock Option Activity To Employees And Director 12
0.56 
Additional Paid-in Capital Schedule Of Stock Option Activity To Employees And Director 13
1,300,000 
Additional Paid-in Capital Schedule Of Stock Option Activity To Employees And Director 14
0.62 
Additional Paid-in Capital Schedule Of Stock Option Activity To Employees And Director 15
(50,000)
Additional Paid-in Capital Schedule Of Stock Option Activity To Employees And Director 16
(0.53)
Additional Paid-in Capital Schedule Of Stock Option Activity To Employees And Director 17
(120,000)
Additional Paid-in Capital Schedule Of Stock Option Activity To Employees And Director 18
(0.53)
Additional Paid-in Capital Schedule Of Stock Option Activity To Employees And Director 19
(140,000)
Additional Paid-in Capital Schedule Of Stock Option Activity To Employees And Director 20
(0.45)
Additional Paid-in Capital Schedule Of Stock Option Activity To Employees And Director 21
$ 2,660,000 
Additional Paid-in Capital Schedule Of Stock Option Activity To Employees And Director 22
0.60 
Schedule of Stock Option Activity to Consultant's (Details) (USD $)
12 Months Ended
Dec. 31, 2016
Additional Paid-in Capital Schedule Of Stock Option Activity To Consultant's 1
$ 100,000 
Additional Paid-in Capital Schedule Of Stock Option Activity To Consultant's 2
0.59 
Additional Paid-in Capital Schedule Of Stock Option Activity To Consultant's 3
(100,000)
Additional Paid-in Capital Schedule Of Stock Option Activity To Consultant's 4
0.59 
Additional Paid-in Capital Schedule Of Stock Option Activity To Consultant's 5
Additional Paid-in Capital Schedule Of Stock Option Activity To Consultant's 6
Additional Paid-in Capital Schedule Of Stock Option Activity To Consultant's 7
50,000 
Additional Paid-in Capital Schedule Of Stock Option Activity To Consultant's 8
0.73 
Additional Paid-in Capital Schedule Of Stock Option Activity To Consultant's 9
$ 50,000 
Additional Paid-in Capital Schedule Of Stock Option Activity To Consultant's 10
0.73 
Schedule of Share-based Compensation, Stock Options, and Warrants or Rights Activity (Details) (USD $)
12 Months Ended
Dec. 31, 2016
Additional Paid-in Capital Schedule Of Share-based Compensation, Stock Options, And Warrants Or Rights Activity 1
0.41 
Additional Paid-in Capital Schedule Of Share-based Compensation, Stock Options, And Warrants Or Rights Activity 2
$ 375,000 
Additional Paid-in Capital Schedule Of Share-based Compensation, Stock Options, And Warrants Or Rights Activity 3
0.57 
Additional Paid-in Capital Schedule Of Share-based Compensation, Stock Options, And Warrants Or Rights Activity 4
0.06 
Additional Paid-in Capital Schedule Of Share-based Compensation, Stock Options, And Warrants Or Rights Activity 5
281,250 
Additional Paid-in Capital Schedule Of Share-based Compensation, Stock Options, And Warrants Or Rights Activity 6
0.09 
Additional Paid-in Capital Schedule Of Share-based Compensation, Stock Options, And Warrants Or Rights Activity 7
0.48 
Additional Paid-in Capital Schedule Of Share-based Compensation, Stock Options, And Warrants Or Rights Activity 8
150,000 
Additional Paid-in Capital Schedule Of Share-based Compensation, Stock Options, And Warrants Or Rights Activity 9
0.22 
Additional Paid-in Capital Schedule Of Share-based Compensation, Stock Options, And Warrants Or Rights Activity 10
0.03 
Additional Paid-in Capital Schedule Of Share-based Compensation, Stock Options, And Warrants Or Rights Activity 11
75,000 
Additional Paid-in Capital Schedule Of Share-based Compensation, Stock Options, And Warrants Or Rights Activity 12
0.03 
Additional Paid-in Capital Schedule Of Share-based Compensation, Stock Options, And Warrants Or Rights Activity 13
0.51 
Additional Paid-in Capital Schedule Of Share-based Compensation, Stock Options, And Warrants Or Rights Activity 14
20,000 
Additional Paid-in Capital Schedule Of Share-based Compensation, Stock Options, And Warrants Or Rights Activity 15
0.00 
Additional Paid-in Capital Schedule Of Share-based Compensation, Stock Options, And Warrants Or Rights Activity 16
0.00 
Additional Paid-in Capital Schedule Of Share-based Compensation, Stock Options, And Warrants Or Rights Activity 17
20,000 
Additional Paid-in Capital Schedule Of Share-based Compensation, Stock Options, And Warrants Or Rights Activity 18
0.01 
Additional Paid-in Capital Schedule Of Share-based Compensation, Stock Options, And Warrants Or Rights Activity 19
0.52 
Additional Paid-in Capital Schedule Of Share-based Compensation, Stock Options, And Warrants Or Rights Activity 20
25,000 
Additional Paid-in Capital Schedule Of Share-based Compensation, Stock Options, And Warrants Or Rights Activity 21
0.00 
Additional Paid-in Capital Schedule Of Share-based Compensation, Stock Options, And Warrants Or Rights Activity 22
0.00 
Additional Paid-in Capital Schedule Of Share-based Compensation, Stock Options, And Warrants Or Rights Activity 23
25,000 
Additional Paid-in Capital Schedule Of Share-based Compensation, Stock Options, And Warrants Or Rights Activity 24
0.01 
Additional Paid-in Capital Schedule Of Share-based Compensation, Stock Options, And Warrants Or Rights Activity 25
0.52 
Additional Paid-in Capital Schedule Of Share-based Compensation, Stock Options, And Warrants Or Rights Activity 26
100,000 
Additional Paid-in Capital Schedule Of Share-based Compensation, Stock Options, And Warrants Or Rights Activity 27
0.07 
Additional Paid-in Capital Schedule Of Share-based Compensation, Stock Options, And Warrants Or Rights Activity 28
0.02 
Additional Paid-in Capital Schedule Of Share-based Compensation, Stock Options, And Warrants Or Rights Activity 29
100,000 
Additional Paid-in Capital Schedule Of Share-based Compensation, Stock Options, And Warrants Or Rights Activity 30
0.04 
Additional Paid-in Capital Schedule Of Share-based Compensation, Stock Options, And Warrants Or Rights Activity 31
0.53 
Additional Paid-in Capital Schedule Of Share-based Compensation, Stock Options, And Warrants Or Rights Activity 32
125,000 
Additional Paid-in Capital Schedule Of Share-based Compensation, Stock Options, And Warrants Or Rights Activity 33
0.14 
Additional Paid-in Capital Schedule Of Share-based Compensation, Stock Options, And Warrants Or Rights Activity 34
0.02 
Additional Paid-in Capital Schedule Of Share-based Compensation, Stock Options, And Warrants Or Rights Activity 35
125,000 
Additional Paid-in Capital Schedule Of Share-based Compensation, Stock Options, And Warrants Or Rights Activity 36
0.05 
Additional Paid-in Capital Schedule Of Share-based Compensation, Stock Options, And Warrants Or Rights Activity 37
0.58 
Additional Paid-in Capital Schedule Of Share-based Compensation, Stock Options, And Warrants Or Rights Activity 38
35,000 
Additional Paid-in Capital Schedule Of Share-based Compensation, Stock Options, And Warrants Or Rights Activity 39
0.02 
Additional Paid-in Capital Schedule Of Share-based Compensation, Stock Options, And Warrants Or Rights Activity 40
0.01 
Additional Paid-in Capital Schedule Of Share-based Compensation, Stock Options, And Warrants Or Rights Activity 41
35,000 
Additional Paid-in Capital Schedule Of Share-based Compensation, Stock Options, And Warrants Or Rights Activity 42
0.02 
Additional Paid-in Capital Schedule Of Share-based Compensation, Stock Options, And Warrants Or Rights Activity 43
0.58 
Additional Paid-in Capital Schedule Of Share-based Compensation, Stock Options, And Warrants Or Rights Activity 44
600,000 
Additional Paid-in Capital Schedule Of Share-based Compensation, Stock Options, And Warrants Or Rights Activity 45
0.79 
Additional Paid-in Capital Schedule Of Share-based Compensation, Stock Options, And Warrants Or Rights Activity 46
0.13 
Additional Paid-in Capital Schedule Of Share-based Compensation, Stock Options, And Warrants Or Rights Activity 47
300,000 
Additional Paid-in Capital Schedule Of Share-based Compensation, Stock Options, And Warrants Or Rights Activity 48
0.13 
Additional Paid-in Capital Schedule Of Share-based Compensation, Stock Options, And Warrants Or Rights Activity 49
0.58 
Additional Paid-in Capital Schedule Of Share-based Compensation, Stock Options, And Warrants Or Rights Activity 50
75,000 
Additional Paid-in Capital Schedule Of Share-based Compensation, Stock Options, And Warrants Or Rights Activity 51
0.10 
Additional Paid-in Capital Schedule Of Share-based Compensation, Stock Options, And Warrants Or Rights Activity 52
0.02 
Additional Paid-in Capital Schedule Of Share-based Compensation, Stock Options, And Warrants Or Rights Activity 53
37,500 
Additional Paid-in Capital Schedule Of Share-based Compensation, Stock Options, And Warrants Or Rights Activity 54
0.02 
Additional Paid-in Capital Schedule Of Share-based Compensation, Stock Options, And Warrants Or Rights Activity 55
0.60 
Additional Paid-in Capital Schedule Of Share-based Compensation, Stock Options, And Warrants Or Rights Activity 56
30,000 
Additional Paid-in Capital Schedule Of Share-based Compensation, Stock Options, And Warrants Or Rights Activity 57
0.01 
Additional Paid-in Capital Schedule Of Share-based Compensation, Stock Options, And Warrants Or Rights Activity 58
0.01 
Additional Paid-in Capital Schedule Of Share-based Compensation, Stock Options, And Warrants Or Rights Activity 59
30,000 
Additional Paid-in Capital Schedule Of Share-based Compensation, Stock Options, And Warrants Or Rights Activity 60
0.01 
Additional Paid-in Capital Schedule Of Share-based Compensation, Stock Options, And Warrants Or Rights Activity 61
0.62 
Additional Paid-in Capital Schedule Of Share-based Compensation, Stock Options, And Warrants Or Rights Activity 62
300,000 
Additional Paid-in Capital Schedule Of Share-based Compensation, Stock Options, And Warrants Or Rights Activity 63
0.36 
Additional Paid-in Capital Schedule Of Share-based Compensation, Stock Options, And Warrants Or Rights Activity 64
0.07 
Additional Paid-in Capital Schedule Of Share-based Compensation, Stock Options, And Warrants Or Rights Activity 65
275,000 
Additional Paid-in Capital Schedule Of Share-based Compensation, Stock Options, And Warrants Or Rights Activity 66
0.13 
Additional Paid-in Capital Schedule Of Share-based Compensation, Stock Options, And Warrants Or Rights Activity 67
0.73 
Additional Paid-in Capital Schedule Of Share-based Compensation, Stock Options, And Warrants Or Rights Activity 68
600,000 
Additional Paid-in Capital Schedule Of Share-based Compensation, Stock Options, And Warrants Or Rights Activity 69
2.16 
Additional Paid-in Capital Schedule Of Share-based Compensation, Stock Options, And Warrants Or Rights Activity 70
0.16 
Additional Paid-in Capital Schedule Of Share-based Compensation, Stock Options, And Warrants Or Rights Activity 71
Additional Paid-in Capital Schedule Of Share-based Compensation, Stock Options, And Warrants Or Rights Activity 72
Additional Paid-in Capital Schedule Of Share-based Compensation, Stock Options, And Warrants Or Rights Activity 73
0.73 
Additional Paid-in Capital Schedule Of Share-based Compensation, Stock Options, And Warrants Or Rights Activity 74
50,000 
Additional Paid-in Capital Schedule Of Share-based Compensation, Stock Options, And Warrants Or Rights Activity 75
0.09 
Additional Paid-in Capital Schedule Of Share-based Compensation, Stock Options, And Warrants Or Rights Activity 76
0.01 
Additional Paid-in Capital Schedule Of Share-based Compensation, Stock Options, And Warrants Or Rights Activity 77
Additional Paid-in Capital Schedule Of Share-based Compensation, Stock Options, And Warrants Or Rights Activity 78
Additional Paid-in Capital Schedule Of Share-based Compensation, Stock Options, And Warrants Or Rights Activity 79
0.76 
Additional Paid-in Capital Schedule Of Share-based Compensation, Stock Options, And Warrants Or Rights Activity 80
225,000 
Additional Paid-in Capital Schedule Of Share-based Compensation, Stock Options, And Warrants Or Rights Activity 81
0.83 
Additional Paid-in Capital Schedule Of Share-based Compensation, Stock Options, And Warrants Or Rights Activity 82
0.06 
Additional Paid-in Capital Schedule Of Share-based Compensation, Stock Options, And Warrants Or Rights Activity 83