INTELGENX TECHNOLOGIES CORP., 10-Q filed on 8/9/2018
Quarterly Report
v3.10.0.1
Document and Entity Information - shares
6 Months Ended
Jun. 30, 2018
Aug. 05, 2018
Document Type 10-Q  
Amendment Flag false  
Document Period End Date Jun. 30, 2018  
Trading Symbol igxt  
Entity Registrant Name IntelGenx Technologies Corp.  
Entity Central Index Key 0001098880  
Current Fiscal Year End Date --12-31  
Entity Filer Category Smaller Reporting Company  
Entity Common Stock, Shares Outstanding   70,989,337
Entity Current Reporting Status Yes  
Entity Voluntary Filers No  
Entity Well Known Seasoned Issuer No  
Document Fiscal Year Focus 2018  
Document Fiscal Period Focus Q2  
v3.10.0.1
Consolidated Balance Sheets - USD ($)
$ in Thousands
Jun. 30, 2018
Dec. 31, 2017
Current    
Cash $ 2,321 $ 1,591
Short-term investments 1,362 3,313
Accounts receivable 485 623
Prepaid expenses 590 203
Investment tax credits receivable 451 314
Total current assets 5,209 6,044
Leasehold improvements and equipment, net 6,149 6,346
Security deposits 733 757
Total assets 12,091 13,147
Current    
Accounts payable and accrued liabilities 2,000 1,305
Current portion of long-term debt 736 772
Total current liabilities 2,736 2,077
Deferred lease obligations 50 50
Long-term debt 1,539 1,992
Convertible debentures 5,094 5,199
Convertible notes 997 0
Total liabilities 10,416 9,318
Shareholders' equity    
Capital Stock, common shares, $0.00001 par value; 200,000,000 shares authorized; 70,547,267 shares issued and outstanding (2017: 67,031,467 common shares) 1 1
Additional paid-in capital 27,872 25,253
Accumulated deficit (25,453) (20,788)
Accumulated other comprehensive loss (745) (637)
Total Shareholders' Equity 1,675 3,829
Total liabilities and Stockholders' Equity $ 12,091 $ 13,147
v3.10.0.1
Consolidated Balance Sheets (Parenthetical) - $ / shares
Jun. 30, 2018
Dec. 31, 2017
Common Stock, Par Value Per Share $ 0.00001 $ 0.00001
Common Stock, Shares Authorized 200,000,000 200,000,000
Common Stock, Shares, Issued 70,547,267 67,031,467
Common Stock, Shares, Outstanding 70,547,267 67,031,467
v3.10.0.1
Consolidated Statement of Shareholders' Equity - 6 months ended Jun. 30, 2018 - USD ($)
$ in Thousands
Capital Stock [Member]
Additional Paid-In Capital [Member]
Accumulated Deficit [Member]
Accumulated Other Comprehensive Loss [Member]
Total
Beginning Balance at Dec. 31, 2017 $ 1 $ 25,253 $ (20,788) $ (637) $ 3,829
Beginning Balance (Shares) at Dec. 31, 2017 67,031,467        
Other comprehensive loss       (108) (108)
Common stock issued, net of transaction costs of $167   1,460     1,460
Common stock issued, net of transaction costs of $167 (Shares) 2,540,800        
Warrants issued, net of transaction costs of $50   437     437
Agents warrants issued   50     50
Warrants exercised   536     536
Warrants exercised (Shares) 950,000        
Options exercised   13     $ 13
Options exercised (Shares) 25,000       25,000
Stock-based compensation   123     $ 123
Net loss for the period     (4,665)   (4,665)
Ending Balance at Jun. 30, 2018 $ 1 $ 27,872 $ (25,453) $ (745) $ 1,675
Ending Balance (Shares) at Jun. 30, 2018 70,547,267        
v3.10.0.1
Consolidated Statement of Comprehensive Loss - USD ($)
$ in Thousands
3 Months Ended 6 Months Ended 18 Months Ended
Jun. 30, 2018
Jun. 30, 2017
Jun. 30, 2018
Jun. 30, 2018
Revenues        
License and other revenue $ 234 $ 1,126 $ 473 $ 2,479
Total revenues 234 1,126 473 2,479
Expenses        
Cost of royalty and license revenue 0 89 0 181
Research and development expense 857 654 1,654 1,298
Selling, general and administrative expense 1,322 826 2,602 1,730
Depreciation of tangible assets 179 170 362 340
Total expenses 2,358 1,739 4,618 3,549
Operating loss (2,124) (613) (4,145) (1,070)
Interest income 0 1 0 3
Net financing and interest expense (277) (54) (520) (111)
Net loss (2,401) (666) (4,665) (1,178)
Other comprehensive (loss) income        
Foreign currency translation adjustment (35) 116 (107) 160
Change in fair value 4 0 (1) 0
Comprehensive loss $ (2,432) $ (550) $ (4,773) $ (1,018)
Basic and diluted:        
Basic and diluted weighted average number of shares outstanding 68,877,428 65,493,394 68,346,126 65,399,853
Basic and diluted loss per common share $ (0.04) $ (0.01) $ (0.07) $ (0.02)
v3.10.0.1
Consolidated Statement of Cash Flows - USD ($)
$ in Thousands
3 Months Ended 6 Months Ended
Jun. 30, 2018
Jun. 30, 2017
Jun. 30, 2018
Jun. 30, 2017
Funds (used) provided - Operating activities        
Net loss $ (2,401) $ (666) $ (4,665) $ (1,178)
Depreciation 179 170 362 340
Stock-based compensation 73 53 123 223
Accretion expense 94 0 167 0
DSU expense 232 0 232 0
Interest payable by issuance of common shares 238 0 238 0
Total Adjustments (1,585) (443) (3,543) (615)
Changes in non-cash items related to operations:        
Accounts receivable 170 61 138 677
Prepaid expenses (215) 24 (387) 162
Investment tax credits receivable (68) (35) (137) 33
Security deposits (11) (18) (11) (24)
Accounts payable and accrued liabilities 199 (161) 239 (445)
Deferred revenue 0 (870) 0 (1,754)
Deferred lease obligations 0 2 0 3
Net change in non-cash items related to operations 75 (997) (158) (1,348)
Net cash used in operating activities (1,510) (1,440) (3,701) (1,963)
Financing activities        
Repayment of term loans (185) (251) (372) (354)
Proceeds from exercise of warrants and stock options 154 679 549 1,016
Net proceeds from private placement 3,004 0 3,004 0
Transaction costs of private placement (82) 0 (82) 0
Net cash provided by financing activities 2,891 428 3,099 662
Investing activities        
Additions to leasehold improvements and equipment (16) (233) (454) (455)
Redemption of short-term investments 393 2,025 1,908 2,325
Net cash provided by (used in) investing activities 377 1,792 1,454 1,870
Increase in cash 1,758 780 852 569
Effect of foreign exchange on cash (55) 95 (122) (6)
Cash        
Beginning of period 618 300 1,591 612
End of period $ 2,321 $ 1,175 $ 2,321 $ 1,175
v3.10.0.1
Basis of Presentation
6 Months Ended
Jun. 30, 2018
Basis of Presentation [Text Block]
1. Basis of Presentation
   
 

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

   
 

These financial statements should be read in conjunction with the audited consolidated financial statements at December 31, 2017. Operating results for the six months ended June 30, 2018 are not necessarily indicative of the results that may be expected for the year ending December 31, 2018. The Company prepares its financial statements in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”). This basis of accounting involves the application of accrual accounting and consequently, revenues and gains are recognized when earned, and expenses and losses are recognized when incurred.

   
 

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

   
 

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

   
 

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

v3.10.0.1
Going Concern
6 Months Ended
Jun. 30, 2018
Going Concern [Text Block]
2.

Going Concern

   
 

The Company has financed its operations to date primarily through public offerings of its common stock, bank loans, royalty, up-front and milestone payments, license fees, proceeds from exercise of warrants and options, research and development revenues and the sale of U.S. royalty on future sales of Forfivo XL ® . The Company has devoted substantially all of its resources to its drug development efforts, conducting clinical trials to further advance the product pipeline, the expansion of its facilities, protecting its intellectual property and general and administrative functions relating to these operations. The future success of the Company is dependent on its ability to develop its product pipeline and ultimately upon its ability to attain profitable operations. As of June 30, 2018, the Company had cash and short-term investments totaling approximately $3,683. The Company does not have sufficient existing cash and short-term investments to support operations for the next year following the issuance of these financial statements. These conditions raise substantial doubt about the Company’s ability to continue as a going concern. Management’s plans to alleviate these conditions include pursuing one or more of the following steps to raise additional funding, none of which can be guaranteed or are entirely within the Company’s control:

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

  As of June 30, 2018, there are also 3,120,902 warrants outstanding at an exercise price of $0.5646 which expire on December 31, 2018.
   
 

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

   
 

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

v3.10.0.1
Adoption of New Accounting Standards
6 Months Ended
Jun. 30, 2018
Adoption of New Accounting Standards [Text Block]
3.

Adoption of New Accounting Standards

   
 

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

   
 

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

   
 

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

   
 

The Company’s accounting policies for its revenue streams are disclosed in Note 4 below. Apart from providing more extensive disclosures on the Company’s revenue transactions, the application of ASC 606 has not had a significant impact on the financial position and/or financial performance of the Company.

   
 

The FASB issued ASU 2017-09, Stock compensation, which provides guidance on determining which changes to the terms and conditions of share-based payment awards require an entity to apply modification accounting under Topic 718. The statement is effective for annual periods beginning after December 15, 2017. The Company has made an accounting policy choice to recognize the effect of awards for which the requisite service is not rendered when the award is forfeited (that is, recognize the effect of forfeitures in compensation cost when they occur). Previously recognized compensation cost for an award shall be reversed in the period that the award is forfeited. The adoption of this statement did not have a material effect on the Company’s financial position or results.

   
 

The FASB issued ASU 2017-01, Business Combinations, which clarifies the definition of a business and is intended to help companies evaluate whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. These amendments are effective for a public business entity for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. The adoption of this statement did not have a material effect on the Company’s financial position or results.

   
 

The FASB issued ASU 2016-18, Statement of Cash Flows, which requires that the statement of cash flows explain the change during the period in the total cash, cash equivalents, and amounts generally described as restricted or restricted cash equivalents. The statement is effective for annual periods beginning after December 15, 2017, and interim periods within those annual periods. The adoption of this statement did not have a material effect on the Company’s financial position or results.

   
 

The FASB issued ASU 2016-16, Income taxes, and requires an entity to recognize the income tax consequences of an intra-entity transfer of an asset other than inventory when the transfer occurs. These amendments are effective for a public business entity for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. The adoption of this statement did not have a material effect on the Company’s financial position or results.

   
 

The FASB issued ASU 2016-15, Statement of Cash Flows, which clarifies how certain cash receipts and payments are to be presented in the Statement of cash flows. The statement is effective for annual periods beginning after December 15, 2017, and interim periods within those annual periods. The adoption of this statement did not have a material effect on the Company’s financial position or results.

   
  The FASB issued ASU 2016-01, Financial Instruments. The targeted amendments to existing guidance include:

  1.

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

     
  2.

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

     
  3.

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

     
  4.

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


 

For public business entities, the amendments in this Update are effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. The adoption of this statement did not have a material effect on the Company’s financial position or results.

v3.10.0.1
Significant Accounting Policies
6 Months Ended
Jun. 30, 2018
Significant Accounting Policies [Text Block]
4.

Significant Accounting Policies


 

Revenue Recognition

 

 

 

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

   
 

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

   
 

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

   
 

Research and Development Revenue

   
 

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

   
 

Licensing and Collaboration Arrangements

   
 

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

   
 

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

   
 

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

   
 

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


 

Leasehold Improvements and Equipment

   
 

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


  On the declining balance method -  
     
         Laboratory and office equipment 20%
         Computer equipment 30%
     
  On the straight-line method -  
     
         Leasehold improvements over the lease term
         Manufacturing equipment 5 – 10 years

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

Recent Accounting Pronouncements

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

The FASB issued ASU 2018-07 to expand the scope of Topic 718 to include share-based payment transactions for acquiring goods and services from nonemployees. These amendments are effective for a public business entity for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. The Company is currently evaluating the impact of this Statement on its consolidated financial statements.

ASU 2018-02 – Income Statement – Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income

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

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

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

 

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

   
 

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

v3.10.0.1
Leasehold Improvements and Equipment
6 Months Ended
Jun. 30, 2018
Leasehold Improvements and Equipment [Text Block]
5.

Leasehold Improvements and Equipment


                       
December 31,
 
                 
June 30, 2018
   
2017
 
           
Accumulated
   
Net Carrying
   
Net Carrying
 
     
Cost
   
Depreciation
   
Amount
   
Amount
 
                           
  Manufacturing equipment $ 3,615   $ 478   $ 3,137   $ 2,953  
  Laboratory and office equipment   1,319     664     655     759  
  Computer equipment   102     62     40     44  
  Leasehold improvements   3,100     783     2,317     2,590  
                           
    $ 8,136   $ 1,987   $ 6,149   $ 6,346  

 

From the balance of manufacturing equipment, an amount of $1,164 thousand (2017: $822 thousand) represents assets which are not yet in service as at June 30, 2018

v3.10.0.1
Bank indebtedness
6 Months Ended
Jun. 30, 2018
Bank indebtedness [Text Block]
6.

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 ($190 thousand) and corporate credits cards of up to CAD$75 and $60 thousand, and foreign exchange contracts limited to CAD$425 thousand ($323 thousand). Borrowings under the operating demand line of credit bear interest at the Bank’s prime lending rate plus 2%. The credit facility and term loan (see note 7) are secured by a first ranking movable hypothec on all present and future movable property of the Company for an amount of CAD$4,250,000 ($3,227,000) plus 20%, and a 50% guarantee by Export Development Canada, a Canadian Crown corporation export credit agency. The terms of the banking agreement require the Company to comply with certain debt service coverage and debt to net worth financial covenants on an annual basis at the end of the Company’s fiscal year. As at June 30, 2018, the Company has not drawn on its credit facility.

v3.10.0.1
Long-term debt
6 Months Ended
Jun. 30, 2018
Long-term debt [Text Block]
7.

Long-term debt

   
 

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


      June 30, 2018     December 31, 2017  
      $     $  
               
               
               
  Term loan facility   1,845     2,233  
  Secured loan   430     531  
  Total debt   2,275     2,764  
               
  Less: current portion   736     772  
               
  Total long-term debt   1,539     1,992  

The Company’s term loan facility consists of a total of CAD$4 million ($3.04 million) bearing interest at the Bank’s prime lending rate plus 2.50%, with monthly principal repayments of CAD$62 thousand ($47 thousand). The term loan is subject to the same security and financial covenants as the bank indebtedness (see note 6).

The secured loan has a principal balance authorized of CAD$1 million ($759 thousand) bearing interest at prime plus 7.3%, reimbursable in monthly principal payments of CAD$17 thousand ($13 thousand) from January 2017 to March 2021. The loan is secured by a second ranking on all present and future property of the Company. The terms of the banking agreement require the Company to comply with certain debt service coverage and debt to net worth financial covenants on an annual basis at the end of the Company’s fiscal year.

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

2018 377 (CAD496)
2019 717 (CAD945)
2020 717 (CAD945)
2021 464 (CAD610)
v3.10.0.1
Convertible Debentures
6 Months Ended
Jun. 30, 2018
Convertible Debentures [Text Block]
8.   Convertible Debentures
   
 

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

   
 

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

   
 

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

   
 

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

   
 

The components of the convertible debentures are as follows:


      June 30,     December 31,  
      2018     2017  
               
               
  Face value of the convertible debentures $ 5,771   $ 6,058  
  Transaction costs   (939 )   (986 )
  Accretion   262     127  
  Convertible debentures $ 5,094   $ 5,199  

The accrued interest on the convertible debentures for the six-month period ended June 30, 2018 amounts to CAD$304 thousand ($238 thousand) and is recorded in financing and interest expense and accrued liabilities. On July 3, 2018, the accrued interest was paid by issuance of 307,069 common shares.

v3.10.0.1
Private Placement
6 Months Ended
Jun. 30, 2018
Private Placement [Text Block]
9.   Private Placement
   
 

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

   
 

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

   
 

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

   
 

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


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

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

The components of the convertible notes are as follows:

    June 30,  
    2018  
       
       
Attributed value of net proceeds to convertible notes $ 975  
Accretion   22  
Convertible notes $ 997  

The interest on the convertible notes for the six-month period ended June 30, 2018 amounts to $14 thousand and is recorded in financing and interest expense.

v3.10.0.1
Capital Stock
6 Months Ended
Jun. 30, 2018
Capital Stock [Text Block]
10.

Capital Stock


      June 30,     December 31,  
      2018     2017  
  Authorized -            
               
  200,000,000 common shares of $0.00001 par value
  20,000,000 preferred shares of $0.00001 par value
           
               
  Issued -            
               
  70,547,267 (December 31, 2017 - 67,031,467) common shares $ 1   $ 1  
v3.10.0.1
Additional Paid-In Capital
6 Months Ended
Jun. 30, 2018
Additional Paid-In Capital [Text Block]
11.   Additional Paid-In Capital
   
  Stock options
   
 

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

 

 

 

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

 

 

 

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

 

 

 

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

 

 

 

During the six-month period ended June 30, 2017, on January 18, 2017, 300,000 options to purchase common stock were granted to non-employee directors under the 2016 Stock Option Plan. The options have an exercise price of $0.89. The options vest immediately and expire 10 years after the grant date. The stock options were accounted for at their fair value, as determined by the Black-Scholes valuation model, of approximately $114 thousand.

 

 

 

During the six-month period ended June 30, 2017 a total of 135,000 stock options were exercised for 135,000 common shares having a par value of $0 thousand in aggregate, for cash consideration of $62 thousand, resulting in an increase in additional paid-in capital of $62 thousand.

   
 

Compensation expenses for stock-based compensation of $123 thousand and $223 thousand were recorded during the six-month periods ended June 30, 2018 and 2017, respectively. An amount of $119 thousand expensed in the six-month period of 2018 relates to stock options granted to employees and directors and an amount of $4 thousand relates to stock options granted to a consultant. An amount of $220 thousand expensed in the six- month period of 2017 relates to stock options granted to employees and directors and an amount of $3 thousand relates to stock options granted to a consultant. As at June 30, 2018, the Company has $550 thousand (2017 - $188 thousand) of unrecognized stock-based compensation.

   
 

Warrants

   
 

During the six-month period ended June 30, 2018 a total of 950,000 warrants were exercised for 950,000 common shares having a par value of $Nil in aggregate, for cash consideration of approximately $536 thousand, resulting in an increase in additional paid-in capital of approximately $536 thousand. During the six-month period ended June 30, 2017 a total of 1,690,000 warrants were exercised for 1,690,000 common shares having a par value of $Nil in aggregate, for cash consideration of approximately $954 thousand, resulting in an increase in additional paid-in capital of approximately $954 thousand.

   
 

Deferred Share Units (“DSUs”)

 

 

 

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

   
 

Performance and Restricted Share Units (“PRSUs”)

 

 

 

At the Annual Meeting on May 8, 2018, the shareholders approved the IntelGenx Technologies Corp. Performance and Restricted Share Unit Plan (PRSU Plan) which the Board of Directors had approved on March 19, 2018. The primary purpose of this PRSU Plan is to provide the Company with a share-related mechanism to attract, retain and motivate qualified executive officers of the Company and its Subsidiaries and to reward such executive officers for their contributions toward the long-term goals and success of the Company and to enable and encourage such executive officers to acquire shares of Common Stock as long-term investments and proprietary interests in the Company. No rewards have been issued under the PRSU Plan as of June 30, 2018.

v3.10.0.1
Revenues
6 Months Ended
Jun. 30, 2018
Revenues [Text Block]
12.

Revenues

   
 

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


      June 30, 2018     June 30, 2017  
               
               
  Research and development agreements $ 473   $ 245  
  Licensing agreements   -     405  
  Deferred revenue (sale of future royalties)   -     1,829  
    $ 473   $ 2,479  

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

      June 30, 2018     June 30, 2017  
               
               
  Product and services transferred at point in time $   -   $ 405  
  Products and services transferred over time   473     2,074  
    $ 473   $ 2,479  

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

      June 30, 2018     June 30, 2017  
               
  Europe $ 410     245  
  Canada   63     375  
  U.S.   -     1,829  
  Other foreign countries   -     30  
    $ 473   $ 2,479  

Remaining performance obligations

As at June 30, 2018, the aggregate amount of the transaction price allocated to the remaining performance obligation is $329 representing research and development agreements, the majority of which is expected to be recognized in the next twelve months. The Company is also eligible to receive up to $4,051 in research and development milestone payments; up to $28,751 in commercial sales milestone payments. In addition, the Company is entitled to receive royalties on potential sales.

   
 

The Company applies the practical expedient in paragraph 606-10-50-14 and does not disclose information about remaining performance obligations that have original expected durations of one year or less. The Company applies the transition practical expedient in paragraph 606-10-65-1(f)(3) and does not disclose the amount of the transaction price allocated to the remaining performance obligations and an explanation of when the Company expects to recognize that amount as revenue for the year ended December 31, 2018.

v3.10.0.1
Related Party Transactions
6 Months Ended
Jun. 30, 2018
Related Party Transactions [Text Block]
13.

Related Party Transactions

   
 

Included in management salaries for the six-month period ended June 30, 2018 are $17 thousand (2017 - $Nil) for options granted to the Chief Executive Officer, $7 thousand (2017 - $30 thousand) for options granted to the Chief Financial Officer, $Nil (2017 - $3 thousand) for options granted to the former Vice President, Operations, $6 thousand (2017 - $3 thousand) for options granted to the Vice-President, Research and Development, $23 thousand (2017 – $17 thousand) for options granted to Vice-President, Business and Corporate Development under the 2016 Stock Option Plan and $6 thousand (2017 - $124 thousand) for options granted to non-employee directors.

   
 

Also included in management salaries for the six-month period ended June 30, 2018 are director fees of $124 thousand (2017 - $136 thousand) and DSU of $232 thousand.

   
 

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

v3.10.0.1
Basic and Diluted Loss Per Common Share
6 Months Ended
Jun. 30, 2018
Basic and Diluted Loss Per Common Share [Text Block]
14.

Basic and Diluted Loss Per Common Share

   
 

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

v3.10.0.1
Subsequent Event
6 Months Ended
Jun. 30, 2018
Subsequent Event [Text Block]
15.

Subsequent Event

   
 

On July 3, 2018, the Company granted 100,000 options to purchase common stock to a consultant. The stock options are exercisable at $0.78 per share and vest over 2 years at 25% every six months.

v3.10.0.1
Summary of Significant Accounting Policies (Policies)
6 Months Ended
Jun. 30, 2018
Revenue Recognition [Policy Text Block]
 

Revenue Recognition

 

 

 

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

   
 

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

   
 

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

   
 

Research and Development Revenue

   
 

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

   
 

Licensing and Collaboration Arrangements

   
 

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

   
 

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

   
 

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

   
 

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

Leasehold Improvements and Equipment [Policy Text Block]
 

Leasehold Improvements and Equipment

   
 

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


  On the declining balance method -  
     
         Laboratory and office equipment 20%
         Computer equipment 30%
     
  On the straight-line method -  
     
         Leasehold improvements over the lease term
         Manufacturing equipment 5 – 10 years

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

Recent Accounting Pronouncements [Policy Text Block]

Recent Accounting Pronouncements

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

The FASB issued ASU 2018-07 to expand the scope of Topic 718 to include share-based payment transactions for acquiring goods and services from nonemployees. These amendments are effective for a public business entity for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. The Company is currently evaluating the impact of this Statement on its consolidated financial statements.

ASU 2018-02 – Income Statement – Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income

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

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

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

 

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

   
 

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

v3.10.0.1
Significant Accounting Policies (Tables)
6 Months Ended
Jun. 30, 2018
Schedule of Estimated Useful Lives of Leasehold Improvements and Equipment [Table Text Block]
  On the declining balance method -  
     
         Laboratory and office equipment 20%
         Computer equipment 30%
     
  On the straight-line method -  
     
         Leasehold improvements over the lease term
         Manufacturing equipment 5 – 10 years
v3.10.0.1
Leasehold Improvements and Equipment (Tables)
6 Months Ended
Jun. 30, 2018
Schedule of Leasehold Improvements and Equipment [Table Text Block]
                       
December 31,
 
                 
June 30, 2018
   
2017
 
           
Accumulated
   
Net Carrying
   
Net Carrying
 
     
Cost
   
Depreciation
   
Amount
   
Amount
 
                           
  Manufacturing equipment $ 3,615   $ 478   $ 3,137   $ 2,953  
  Laboratory and office equipment   1,319     664     655     759  
  Computer equipment   102     62     40     44  
  Leasehold improvements   3,100     783     2,317     2,590  
                           
    $ 8,136   $ 1,987   $ 6,149   $ 6,346  
v3.10.0.1
Long-term debt (Tables)
6 Months Ended
Jun. 30, 2018
Term loan [Table Text Block]
      June 30, 2018     December 31, 2017  
      $     $  
               
               
               
  Term loan facility   1,845     2,233  
  Secured loan   430     531  
  Total debt   2,275     2,764  
               
  Less: current portion   736     772  
               
  Total long-term debt   1,539     1,992  
Term loan principal repayments [Table Text Block]
2018 377 (CAD496)
2019 717 (CAD945)
2020 717 (CAD945)
2021 464 (CAD610)
v3.10.0.1
Convertible Debentures (Tables)
6 Months Ended
Jun. 30, 2018
Schedule of Convertible Debt [Table Text Block]
      June 30,     December 31,  
      2018     2017  
               
               
  Face value of the convertible debentures $ 5,771   $ 6,058  
  Transaction costs   (939 )   (986 )
  Accretion   262     127  
  Convertible debentures $ 5,094   $ 5,199  
v3.10.0.1
Private Placement (Tables)
6 Months Ended
Jun. 30, 2018
Schedule of Capital Units [Table Text Block]
      Gross proceeds     Transaction costs     Net proceeds  
                     
  Common stock $ 1,627   $ 167   $ 1,460  
  Convertible notes   1,086     111     975  
  Warrants   487     50     437  
    $ 3,200   $ 328   $ 2,872  
Schedule of Components of the Convertible Notes [Table Text Block]
    June 30,  
    2018  
       
       
Attributed value of net proceeds to convertible notes $ 975  
Accretion   22  
Convertible notes $ 997  
v3.10.0.1
Capital Stock (Tables)
6 Months Ended
Jun. 30, 2018
Schedule of Stock by Class [Table Text Block]
      June 30,     December 31,  
      2018     2017  
  Authorized -            
               
  200,000,000 common shares of $0.00001 par value
  20,000,000 preferred shares of $0.00001 par value
           
               
  Issued -            
               
  70,547,267 (December 31, 2017 - 67,031,467) common shares $ 1   $ 1  
v3.10.0.1
Revenues (Tables)
6 Months Ended
Jun. 30, 2018
Disaggregation of Revenue [Table Text Block]
      June 30, 2018     June 30, 2017  
               
               
  Research and development agreements $ 473   $ 245  
  Licensing agreements   -     405  
  Deferred revenue (sale of future royalties)   -     1,829  
    $ 473   $ 2,479  
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Table Text Block]
      June 30, 2018     June 30, 2017  
               
               
  Product and services transferred at point in time $   -   $ 405  
  Products and services transferred over time   473     2,074  
    $ 473   $ 2,479  
Schedule of Revenue from External Customers and Long-Lived Assets, by Geographical Areas [Table Text Block]
      June 30, 2018     June 30, 2017  
               
  Europe $ 410     245  
  Canada   63     375  
  U.S.   -     1,829  
  Other foreign countries   -     30  
    $ 473   $ 2,479  
v3.10.0.1
Going Concern (Narrative) (Details)
Jun. 30, 2018
USD ($)
$ / shares
shares
Cash and short-term investments | $ $ 3,683
Class of Warrant or Right, Outstanding | shares 3,120,902
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ / shares $ 0.5646
v3.10.0.1
Leasehold Improvements and Equipment (Narrative) (Details) - USD ($)
$ in Thousands
Jun. 30, 2018
Dec. 31, 2017
Property, Plant and Equipment, Net $ 6,149 $ 6,346
Asset not yet in service [Member]    
Property, Plant and Equipment, Net $ 1,164 $ 822
v3.10.0.1
Bank indebtedness (Narrative) (Details) - 6 months ended Jun. 30, 2018
$ in Thousands, $ in Thousands
USD ($)
CAD ($)
Line of Credit Facility, Collateral The credit facility and term loan (see note 7) are secured by a first ranking movable hypothec on all present and future movable property of the Company for an amount of CAD$4,250,000 ($3,227,000) plus 20%, and a 50% guarantee by Export Development Canada, a Canadian Crown corporation export credit agency.  
Line of Credit [Member]    
Long-term Line of Credit $ 190 $ 250
Line of Credit Facility, Interest Rate During Period 2.00%  
Corporate Credit Cards [Member]    
Long-term Line of Credit   75
Corporate Credit Cards 2 [Member]    
Long-term Line of Credit $ 60  
Foreign Exchange Contract [Member]    
Long-term Line of Credit $ 323 $ 425
v3.10.0.1
Long-term debt (Narrative) (Details) - 6 months ended Jun. 30, 2018
$ in Thousands
USD ($)
CAD ($)
CAD ($)
Debt Instrument, Interest Rate Terms bearing interest at the Bank’s prime lending rate plus 2.50% bearing interest at the Bank’s prime lending rate plus 2.50%  
Term loan facility [Member]      
Debt Instrument, Face Amount $ 3,040,000   $ 4,000
Debt Instrument, Periodic Payment $ 47,000 $ 62  
Secured Loan [Member]      
Debt Instrument, Interest Rate Terms bearing interest at prime plus 7.3% bearing interest at prime plus 7.3%  
Debt Instrument, Periodic Payment $ 13,000 $ 17  
Secured Debt $ 759,000,000   $ 1,000
v3.10.0.1
Convertible Debentures (Narrative) (Details)
1 Months Ended 6 Months Ended
Aug. 08, 2017
CAD ($)
Jul. 12, 2017
CAD ($)
$ / shares
shares
Aug. 08, 2017
CAD ($)
Jun. 30, 2018
USD ($)
$ / shares
Jun. 30, 2018
CAD ($)
Proceeds from Convertible Debt $ 762,000 $ 6,838,000 $ 7,600,000    
Proceeds from Convertible Debt, amount per instrument   $ 1,000 $ 1,000    
Debt Instrument, Interest Rate   8.00%      
Debt Instrument, Convertible, Conversion Price | (per share)   $ 1.35   $ 0.80  
Debt Instrument, Convertible, Number of shares per instrument | shares   740      
Payments of Debt Issuance Costs         $ 1,237,000
Accretion Expense       $ 145,000 185,000
Interest on Convertible Debt, Net of Tax       238,000 $ 304,000
Deposit Liabilities, Accrued Interest       $ 307,069  
v3.10.0.1
Private Placement (Narrative) (Details)
3 Months Ended 6 Months Ended
Jun. 30, 2018
USD ($)
$ / shares
Jun. 30, 2017
USD ($)
Jun. 30, 2018
USD ($)
$ / shares
shares
Jun. 30, 2017
USD ($)
Jul. 12, 2017
$ / shares
Stock Issued During Period, Shares, Conversion of Units | shares     320    
Subscription Price of Units     $ 10,000    
Stock Issued During Period, Value, Conversion of Units     $ 3,200,000    
Stock Issued During Period, Shares, Conversion of Convertible Securities | shares     7,940    
Stock Issued During Period, Value, Conversion of Convertible Securities     $ 5,000    
Warrants Issued During Period, Warrants | shares     7,690    
Interest Rate on Convertible Note     6.00%    
Debt Instrument, Convertible, Conversion Price | (per share) $ 0.80   $ 0.80   $ 1.35
Sale of Stock, Price Per Share | $ / shares $ 0.80   $ 0.80    
Commission Paid to Agents $ 157,800   $ 157,800    
Stock Issued During Period, Shares, Issued for Services | shares     243,275    
Equity Issuance, Per Share Amount | $ / shares     $ 0.80    
Warrants Issued During Period, Value     $ 50,000    
Accretion Expense $ 94,000 $ 0 167,000 $ 0  
Financing Interest Expense     14,000    
Convertible debt [Member]          
Transactions Costs of Convertible Notes     111,000    
Accretion Expense     $ 22,000    
v3.10.0.1
Additional Paid-In Capital (Narrative) (Details) - USD ($)
1 Months Ended 3 Months Ended 6 Months Ended
Jun. 30, 2018
Apr. 30, 2018
Jan. 31, 2018
Jun. 30, 2018
Jun. 30, 2017
Jun. 30, 2018
Jun. 30, 2017
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Net of Forfeitures 800,000 275,000 100,000       300,000
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price $ 0.76 $ 0.66 $ 0.79       $ 0.89
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period 2 years 2 years 2 years        
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rate 25.00% 25.00% 25.00%        
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Contractual Term 10 years 10 years 10 years       10 years
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value $ 334,000 $ 99,000 $ 44,000       $ 114,000
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period           25,000 135,000
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period, Intrinsic Value           $ 0 $ 0
Proceeds from Stock Options Exercised           13,000 62,000
Options exercised           13,000 62,000
Stock based compensation       $ 73,000 $ 53,000 $ 123,000 $ 223,000
Class of Warrant or Right, Exercises in Period           950,000 1,690,000
Class of Warrant or Right, Exercises in Period, Intrinsic Value           $ 0 $ 0
Proceeds from Warrant Exercises           536,000 954,000
Warrants exercised           $ 536,000 954,000
Deferred Share Units Grands in Period           287,355  
Deferred Share Units [Member]              
Salaries, Wages and Officers' Compensation           $ 232,000  
Stock options granted to employees and directors [Member]              
Stock based compensation           119,000 220,000
Stock options granted to a consultant [Member]              
Stock based compensation           4,000 3,000
Unrecognized stock-based compensation [Member]              
Stock based compensation           $ 550,000 $ 188,000
v3.10.0.1
Revenues (Narrative) (Details)
Jun. 30, 2018
USD ($)
Transaction price allocated to the remaining performance obligation $ 329
Research and development milestone payments 4,051
Commercial sales milestone payments $ 28,751
v3.10.0.1
Related Party Transactions (Narrative) (Details) - USD ($)
$ in Thousands
6 Months Ended
Jun. 30, 2018
Jun. 30, 2017
Deferred Share Units [Member]    
Salaries, Wages and Officers' Compensation $ 232  
Options granted to the Chief Executive Officer [Member]    
Salaries, Wages and Officers' Compensation 17 $ 0
Options granted to the Chief Financial Officer [Member]    
Salaries, Wages and Officers' Compensation 7 30
Options granted to the former Vice President, Operations [Member]    
Salaries, Wages and Officers' Compensation 0 3
Options granted to the Vice-President, Research and Development [Member]    
Salaries, Wages and Officers' Compensation 6 3
Options granted to Vice- President, Business and Corporate Development [Member]    
Salaries, Wages and Officers' Compensation 23 17
Options granted to non-employee directors [Member]    
Salaries, Wages and Officers' Compensation 6 124
Director fees [Member]    
Salaries, Wages and Officers' Compensation $ 124 $ 136
v3.10.0.1
Subsequent Event (Narrative) (Details) - $ / shares
1 Months Ended 6 Months Ended
Jun. 30, 2018
Apr. 30, 2018
Jan. 31, 2018
Jun. 30, 2018
Jun. 30, 2017
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Net of Forfeitures 800,000 275,000 100,000   300,000
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price $ 0.76 $ 0.66 $ 0.79   $ 0.89
Subsequent Event [Member]          
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Net of Forfeitures       100,000  
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price       $ 0.78  
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Weighted Average Remaining Contractual Term       2 years  
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Percentage       25.00%  
v3.10.0.1
Schedule of Estimated Useful Lives of Leasehold Improvements and Equipment (Details)
6 Months Ended
Jun. 30, 2018
Laboratory and office equipment [Member]  
Property, Plant and Equipment, Depreciation Methods 20%
Computer equipment [Member]  
Property, Plant and Equipment, Depreciation Methods 30%
Manufacturing equipment [Member] | Minimum [Member]  
Property, Plant and Equipment, Useful Life 5 years
Manufacturing equipment [Member] | Maximum [Member]  
Property, Plant and Equipment, Useful Life 10 years
v3.10.0.1
Schedule of Leasehold Improvements and Equipment (Details) - USD ($)
$ in Thousands
Jun. 30, 2018
Dec. 31, 2017
Cost $ 8,136  
Accumulated Depreciation 1,987  
Property, Plant and Equipment, Net 6,149 $ 6,346
Manufacturing equipment [Member]    
Cost 3,615  
Accumulated Depreciation 478  
Property, Plant and Equipment, Net 3,137 2,953
Laboratory and office equipment [Member]    
Cost 1,319  
Accumulated Depreciation 664  
Property, Plant and Equipment, Net 655 759
Computer equipment [Member]    
Cost 102  
Accumulated Depreciation 62  
Property, Plant and Equipment, Net 40 44
Leasehold improvements [Member]    
Cost 3,100  
Accumulated Depreciation 783  
Property, Plant and Equipment, Net $ 2,317 $ 2,590
v3.10.0.1
Term loan (Details) - USD ($)
$ in Thousands
Jun. 30, 2018
Dec. 31, 2017
Term loan facility $ 1,845 $ 2,233
Secured loan 430 531
Total debt 2,275 2,764
Less: current portion 736 772
Total long-term debt $ 1,539 $ 1,992
v3.10.0.1
Term loan principal repayments (Details) - Jun. 30, 2018
$ in Thousands, $ in Thousands
USD ($)
CAD ($)
2018 $ 377 $ 496
2019 717 945
2020 717 945
2021 $ 464 $ 610
v3.10.0.1
Schedule of Convertible Debt (Details) - USD ($)
$ in Thousands
6 Months Ended 12 Months Ended
Jun. 30, 2018
Dec. 31, 2017
Convertible Debt $ 5,771 $ 6,058
Transaction costs (939) (986)
Accretion 262 127
Convertible debentures $ 5,094 $ 5,199
v3.10.0.1
Schedule of Capital Units (Details)
$ in Thousands
6 Months Ended
Jun. 30, 2018
USD ($)
Capital Stock [Member]  
Gross Proceeds of Units $ 1,627
Transaction Costs of Units 167
Net Proceeds of Units 1,460
Convertible debt [Member]  
Gross Proceeds of Units 1,086
Transaction Costs of Units 111
Net Proceeds of Units 975
Warrants [Member]  
Gross Proceeds of Units 487
Transaction Costs of Units 50
Net Proceeds of Units 437
Gross Proceeds of Units 3,200
Transaction Costs of Units 328
Net Proceeds of Units $ 2,872
v3.10.0.1
Schedule of Components of the Convertible Notes (Details) - USD ($)
$ in Thousands
Jun. 30, 2018
Dec. 31, 2017
Attributed value of net proceeds to convertible notes $ 975  
Accretion 22  
Convertible notes $ 997 $ 0
v3.10.0.1
Schedule of Stock by Class (Details) - USD ($)
$ / shares in Units, $ in Thousands
Jun. 30, 2018
Dec. 31, 2017
Common Stock, Shares Authorized 200,000,000 200,000,000
Common Stock, Par or Stated Value Per Share $ 0.00001 $ 0.00001
Preferred Stock, Shares Authorized 20,000,000  
Preferred Stock, Par or Stated Value Per Share $ 0.00001  
Common Stock, Shares, Issued 70,547,267 67,031,467
Common Stock, Value, Issued $ 1 $ 1
v3.10.0.1
Disaggregation of Revenue (Details) - USD ($)
$ in Thousands
3 Months Ended 6 Months Ended 18 Months Ended
Jun. 30, 2018
Jun. 30, 2017
Jun. 30, 2018
Jun. 30, 2017
Jun. 30, 2018
Total Revenues $ 234 $ 1,126 $ 473 $ 2,479 $ 2,479
Research and development agreements [Member]          
Total Revenues     473 245  
Licensing Agreements [Member]          
Total Revenues     0 405  
Deferred revenue [Member]          
Total Revenues     $ 0 $ 1,829  
v3.10.0.1
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction (Details) - USD ($)
$ in Thousands
3 Months Ended 6 Months Ended 18 Months Ended
Jun. 30, 2018
Jun. 30, 2017
Jun. 30, 2018
Jun. 30, 2017
Jun. 30, 2018
Total Revenues $ 234 $ 1,126 $ 473 $ 2,479 $ 2,479
Transferred at Point in Time [Member]          
Total Revenues     0 405  
Transferred over Time [Member]          
Total Revenues     $ 473 $ 2,074  
v3.10.0.1
Schedule of Revenue from External Customers and Long-Lived Assets, by Geographical Areas (Details) - USD ($)
$ in Thousands
3 Months Ended 6 Months Ended 18 Months Ended
Jun. 30, 2018
Jun. 30, 2017
Jun. 30, 2018
Jun. 30, 2017
Jun. 30, 2018
Total Revenues $ 234 $ 1,126 $ 473 $ 2,479 $ 2,479
Europe [Member]          
Total Revenues     410 245  
Canada [Member]          
Total Revenues     63 375  
U.S. [Member]          
Total Revenues     0 1,829  
Other foreign countries [Member]          
Total Revenues     $ 0 $ 30