Document_And_Entity_Informatio
Document And Entity Information | 12 Months Ended |
Dec. 31, 2013 | |
Document Information [Line Items] | ' |
Document Type | '40-F |
Amendment Flag | 'false |
Document Period End Date | 31-Dec-13 |
Document Fiscal Year Focus | '2013 |
Document Fiscal Period Focus | 'FY |
Trading Symbol | 'CRME |
Entity Registrant Name | 'Cardiome Pharma Corp |
Entity Central Index Key | '0001036141 |
Current Fiscal Year End Date | '--12-31 |
Entity Well-known Seasoned Issuer | 'No |
Entity Voluntary Filers | 'No |
Entity Current Reporting Status | 'Yes |
Entity Common Stock, Shares Outstanding | 14,958,277 |
Entity Filer Category | 'Non-accelerated Filer |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Current assets: | ' | ' |
Cash and cash equivalents | $10,984 | $41,003 |
Restricted cash (note 6) | 2,323 | 264 |
Accounts receivable | 6,674 | 978 |
Inventories (note 7) | 6,597 | 0 |
Prepaid expenses and other assets | 1,749 | 771 |
Assets, Current | 28,327 | 43,016 |
Property and equipment (note 8) | 618 | 271 |
Intangible assets (note 9) | 18,069 | 1,506 |
Goodwill (note 4) | 318 | 0 |
Assets | 47,332 | 44,793 |
Current liabilities: | ' | ' |
Accounts payable and accrued liabilities (note 10) | 14,003 | 4,434 |
Current portion of long-term debt (note 11) | 0 | 32,500 |
Current portion of deferred consideration (note 4) | 3,688 | 0 |
Liabilities, Current | 17,691 | 36,934 |
Deferred consideration (note 4) | 6,997 | 0 |
Liabilities | 24,688 | 36,934 |
Stockholders' equity: | ' | ' |
Common stock Authorized - unlimited number with no par value Issued and outstanding - 14,958,277 (2012 - 12,470,335) (notes 12(b) and 12(e)) | 272,083 | 262,439 |
Additional paid-in capital | 33,349 | 32,754 |
Deficit | -300,746 | -305,519 |
Accumulated other comprehensive income | 17,958 | 18,185 |
Stockholders' Equity Attributable to Parent | 22,644 | 7,859 |
Liabilities and Equity | $47,332 | $44,793 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Common Stock, Shares, Issued | 14,958,277 | 12,470,335 |
Common Stock, Shares, Outstanding | 14,958,277 | 12,470,335 |
Common Stock, No Par Value | $0 | $0 |
Consolidated_Statements_of_Ope
Consolidated Statements of Operations and Comprehensive Income (Loss) (USD $) | 12 Months Ended | |||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | ||
Revenue: | ' | ' | ||
Product revenues | $4,012 | $0 | ||
Licensing and other fees (note 15) | 499 | 463 | ||
Research collaborative fees (note 15) | 0 | 326 | ||
Revenues | 4,511 | 789 | ||
Cost of goods sold | 936 | 0 | ||
Gross Profit | 3,575 | 789 | ||
Expenses: | ' | ' | ||
Research and development | 476 | 6,017 | ||
Selling, general and administration | 16,446 | 9,463 | ||
Acquisition costs (note 4) | 1,494 | 0 | ||
Restructuring (note 18) | 1,207 | 10,040 | ||
Amortization (notes 8 and 9) | 649 | 1,229 | ||
Operating Expenses | 20,272 | 26,749 | ||
Operating loss | -16,697 | -25,960 | ||
Other income (expenses): | ' | ' | ||
Interest expense | -87 | -4,268 | ||
Gain on settlement of debt (note 11) | 20,834 | 11,218 | ||
Other income | 633 | 650 | ||
Foreign exchange gain | 192 | 45 | ||
Nonoperating Income (Expense) | 21,572 | 7,645 | ||
Income (loss) before income taxes | 4,875 | -18,315 | ||
Provision for income taxes | 102 | 0 | ||
Net income (loss) | 4,773 | -18,315 | ||
Other comprehensive loss: | ' | ' | ||
Foreign currency translation adjustments | 227 | 0 | ||
Comprehensive income (loss) | $4,546 | ($18,315) | ||
Income (loss) per common share (note 13) | ' | ' | ||
Basic | $0.37 | [1] | ($1.49) | [1] |
Diluted | $0.37 | [1] | ($1.49) | [1] |
Weighted average common shares outstanding | ' | ' | ||
Basic | 12,769,844 | [1] | 12,254,546 | [1] |
Diluted | 12,934,856 | [1] | 12,254,546 | [1] |
[1] | Basic and diluted income (loss) per common share is based on the weighted average number of common shares outstanding during the year, which has been adjusted retroactively to reflect the effects of the one-for-five share consolidation (note 12(e)). |
Consolidated_Statements_of_Sto
Consolidated Statements of Stockholders' Equity (USD $) | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | |
In Thousands | ||||||
Balance at Dec. 31, 2011 | $25,286 | $262,097 | $32,208 | ($287,204) | $18,185 | |
Net income (loss) | -18,315 | 0 | 0 | -18,315 | 0 | |
Issuance of common stock (note 18) | -342 | 342 | 0 | 0 | 0 | |
Stock-based compensation expense recognized | 546 | 0 | 546 | 0 | 0 | |
Foreign currency translation adjustments | 0 | ' | ' | ' | ' | |
Balance at Dec. 31, 2012 | 7,859 | 262,439 | 32,754 | -305,519 | 18,185 | |
Net income (loss) | 4,773 | 0 | 0 | 4,773 | 0 | |
Issuance of common stock (note 18) | 0 | ' | ' | ' | ' | |
Common stock issued upon exercise of options | 8 | 8 | 0 | 0 | 0 | |
Issuance of common stock on acquisition (note 4) | 9,629 | [1] | 9,629 | 0 | 0 | 0 |
Reallocation of additional paid-in capital arising from stock-based compensation related to exercise of options | 0 | 7 | -7 | 0 | 0 | |
Stock-based compensation expense recognized | 602 | 0 | 602 | 0 | 0 | |
Foreign currency translation adjustments | -227 | 0 | 0 | 0 | -227 | |
Balance at Dec. 31, 2013 | $22,644 | $272,083 | $33,349 | ($300,746) | $17,958 | |
[1] | The fair value of 19.9% of the Companybs outstanding shares issued on Closing Date (a total of 2,481,596 shares) with a value of $3.88 per share for a total of $9,629 determined based on the closing price on the last trading day immediately preceding the Transaction. |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Operating activities: | ' | ' |
Net income (loss) for the year | $4,773 | ($18,315) |
Items not affecting cash: | ' | ' |
Amortization | 649 | 1,229 |
Restructuring costs settled by share issuance (note 18) | 0 | 342 |
Stock-based compensation (note 12(d)) | 645 | 546 |
Deferred leasehold inducement | 0 | -561 |
Gain on settlement of debt (note 11) | -20,834 | -11,218 |
Unrealized foreign exchange gain | -186 | -133 |
Impairment of property and equipment | 0 | 717 |
Changes in operating assets and liabilities: | ' | ' |
Restricted cash | -2,059 | 156 |
Accounts receivable | 448 | 270 |
Inventories | -2,816 | 0 |
Prepaid expenses and other assets | -18 | 14 |
Accounts payable and accrued liabilities | 2,630 | 2,011 |
Net cash used in operating activities | -16,768 | -24,942 |
Investing activities: | ' | ' |
Restricted cash paid on acquisition (note 4) | -1,266 | 0 |
Restricted cash acquired on acquisition (note 4) | 1,143 | 0 |
Purchase of property and equipment | -39 | -141 |
Purchase of intangible assets | -147 | -292 |
Net cash used in investing activities | -309 | -433 |
Financing activities: | ' | ' |
Issuance of common stock upon exercise of stock options | 8 | 0 |
Proceeds from sale of property and equipment | 149 | 70 |
Proceeds from draws of long-term debt (note 11) | 0 | 25,000 |
Repayment of long-term debt (note 11) | -13,000 | -7,000 |
Net cash (used in) provided by financing activities | -12,843 | 18,070 |
Effect of foreign exchange rate changes on cash and cash equivalents | -99 | 84 |
Decrease in cash and cash equivalents during the year | -30,019 | -7,221 |
Cash and cash equivalents, beginning of year | 41,003 | 48,224 |
Cash and cash equivalents, end of year | 10,984 | 41,003 |
Supplemental cash flow information: | ' | ' |
Interest paid | 0 | 2,238 |
Interest received | 10 | 22 |
Net income taxes paid | 73 | 0 |
Non-cash purchase of Correvio (note 4) | $20,314 | $0 |
Basis_of_presentation
Basis of presentation | 12 Months Ended | ||
Dec. 31, 2013 | |||
Organization, Consolidation and Presentation Of Financial Statements [Abstract] | ' | ||
Nature of Operations [Text Block] | ' | ||
1 | Basis of presentation: | ||
Cardiome Pharma Corp. (the “Company”) was incorporated under the Company Act (British Columbia) on December 12, 1986 and was continued under the laws of Canada on March 8, 2002. Cardiome is a specialty pharmaceutical company dedicated to the development and commercialization of cardiovascular therapies that will improve the quality of life and health of patients suffering from heart disease. The Company currently has two marketed, in-hospital, cardiology products, BRINAVESSTM (vernakalant (IV)) and AGGRASTATTM, which are commercially available in numerous markets outside of the United States. | |||
The Company has financed its cash requirements primarily from share issuances, payments from research collaborators, licensing fees and draws from a credit facility that was available under the Company’s collaborative agreements (note 11). The Company’s ability to realize the carrying value of its assets is dependent on successfully bringing its technologies to market and achieving future profitable operations, the outcome of which cannot be predicted at this time. As a result, in the future it may be necessary for the Company to raise additional funds. These funds may come from sources such as entering into strategic collaboration arrangements, the issuance of shares from treasury, or alternative sources of financing. However, there can be no assurance that the Company will be able to successfully raise sufficient funds to continue the development and commercialization of our products and our operational activities. | |||
Significant_accounting_policie
Significant accounting policies | 12 Months Ended | ||
Dec. 31, 2013 | |||
Accounting Policies [Abstract] | ' | ||
Basis of Presentation and Significant Accounting Policies [Text Block] | ' | ||
2 | Significant accounting policies: | ||
These consolidated financial statements have been prepared in accordance with U.S. GAAP and are presented in U.S. dollars. The following is a summary of significant accounting policies used in the preparation of these consolidated financial statements: | |||
(a) | Principles of consolidation: | ||
These consolidated financial statements include the accounts of Cardiome Pharma Corp. and its wholly-owned subsidiaries. Intercompany accounts and transactions have been eliminated on consolidation. | |||
(b) | Use of estimates: | ||
The preparation of the consolidated financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts recorded in the consolidated financial statements. Significant areas requiring the use of estimates relate to accounting for amounts recorded in connection with business combinations, recoverability of inventories, the valuation and assessment of net recoverable value and amortization period of intangible assets, accrual of clinical trial and research expenses, reporting of revenue recognition, bad debt and doubtful accounts, income taxes, accounting for stock-based compensation expense , and commitments and contingencies. The reported amounts and note disclosure are determined using management’s best estimates based on assumptions that reflect the most probable set of economic conditions and planned course of action. Actual results could differ from those estimates. | |||
(c) | Business combinations: | ||
In a business combination, the acquisition method of accounting requires that the assets acquired and liabilities assumed be recorded as of the date of the merger or acquisition at their respective fair values with limited exceptions. Assets acquired and liabilities assumed in a business combination that arise from contingencies are recognized at fair value if fair value can reasonably be estimated. If the acquisition date fair value of an asset acquired or liability assumed that arises from a contingency cannot be determined, the asset or liability is recognized if probable and reasonably estimable; if these criteria are not met, no asset or liability is recognized. Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Accordingly, the Company may be required to value assets at fair value measures that do not reflect the Company’s intended use of those assets. Any excess of the purchase price (consideration transferred) over the estimated fair values of net assets acquired is recorded as goodwill. Transaction costs and costs to restructure the acquired company are expensed as incurred. The operating results of the acquired business are reflected in the Company’s consolidated financial statements after the date of the merger or acquisition. If the Company determines the assets acquired do not meet the definition of a business under the acquisition method of accounting, the transaction will be accounted for as an acquisition of assets rather than a business combination and, therefore, no goodwill will be recorded. | |||
(d) | Foreign currency translation: | ||
The net assets of foreign subsidiaries where the local currencies have been determined to be the functional currencies are translated into U.S. dollars using exchange rates at the balance sheet dates. Equity is translated at historical rates and revenue and expenses are translated at exchange rates prevailing during the period. The foreign exchange gains and losses arising from translation are recorded in the foreign currency translation account, which is included in other comprehensive income (loss) and reflected as a separate component of equity. For those subsidiaries where the U.S. dollar has been determined to be the functional currency, nonmonetary foreign currency assets and liabilities are translated using historical rates, while monetary assets and liabilities are translated at the period-end exchange rates. Revenues and expenses denominated in foreign currencies are translated at exchange rates prevailing during the period. Foreign exchange gains and losses are recorded in net income (loss) for the period. | |||
(e) | Fair value measurements of financial instruments: | ||
Fair value measurements of financial instruments are determined by using a fair value hierarchy that prioritizes the inputs to valuation techniques into three levels according to the relative reliability of the inputs used to estimate the fair values. | |||
The three levels of inputs used to measure fair value are as follows: | |||
Level 1 - Unadjusted quoted prices in active markets for identical financial instruments; | |||
Level 2 - Inputs other than quoted prices that are observable for the financial instrument either directly or indirectly; and | |||
Level 3 - Inputs that are not based on observable market data. | |||
In determining fair value measurements, the most observable inputs are used when available. The fair value hierarchy level at which a financial instrument is categorized is determined on the basis of the lowest level input that is significant to the fair value measurement. | |||
(f) | Cash and cash equivalents: | ||
The Company considers all highly liquid investments with an original maturity of 90 days or less, when acquired, to be cash equivalents, which are carried at fair value and are designated as held for trading. | |||
(g) | Allowance for doubtful accounts receivable: | ||
The Company estimates an allowance for doubtful accounts receivable primarily based on the credit worthiness of customers, aging of receivable balances and general economic conditions. Amounts later determined and specifically identified to be uncollectible are charged against this allowance. | |||
(h) | Inventories: | ||
Inventories consist of finished goods, unfinished product (work in process) and raw materials and are valued at the lower of cost and net realizable value, determined on a first-in-first-out basis, and include expenditures incurred in acquiring the inventories, production or conversion costs and other costs incurred in bringing them to their existing location and condition. | |||
Net realizable value is the estimated selling price in the ordinary course of business, less the estimated costs of completion and selling expenses. | |||
The components of inventory and inventory purchase commitments are reviewed on a regular basis for excess and obsolete inventory based on estimated future usage and sales. Writedowns in inventory value or losses on inventory purchase commitments depend on various items, including factors related to demand from drug distributors and hospitals, and economic conditions. Management believes that the estimates used in calculating the inventory provision are reasonable and properly reflect the risk of excess and obsolete inventory. | |||
(i) | Property and equipment: | ||
Property and equipment are recorded at cost less accumulated amortization. Amortization is provided using the straight-line method over the following terms: | |||
Asset | Rate | ||
Laboratory equipment | 5 years | ||
Production equipment | 7 years | ||
Computer equipment | 3-5 years | ||
Software | 3-5 years | ||
Furniture and office equipment | 5-7 years | ||
Leasehold improvements are amortized on a straight-line basis over the lesser of their estimated useful life or the initial lease term. | |||
(j) | Intangible assets: | ||
Intangible assets are comprised of patent costs, trade name and marketing rights. Patent costs which are associated with the preparation, filing, and obtaining of patents are capitalized. Maintenance costs of patents are expensed as incurred. | |||
The estimated useful life of intangible assets with definite life is the period over which the assets are expected to contribute to future cash flows. When determining the useful life, the Company considers the expected use of the asset, useful life of a related intangible asset, any legal, regulatory or contractual provisions that limit the useful life, any legal, regulatory, or contractual renewal or extension provisions without substantial costs or modifications to the existing terms and conditions, the effects of obsolescence, demand, competition and other economic factors, and the expected level of maintenance expenditures relative to the cost of the asset required to obtain future cash flows from the asset. | |||
Amortization is provided using the straight-line method over the following terms: | |||
Asset | Rate | ||
Patents | over the useful life | ||
Trade name | 10 years | ||
Marketing rights | 10 years | ||
(k) | Goodwill: | ||
Goodwill represents the excess of the purchase price of an acquired enterprise over the fair value assigned to assets acquired and liabilities assumed in a business combination. Goodwill is allocated as of the date of the business combination to the reporting units that are expected to benefit from the synergies of the business combination. | |||
Goodwill has an indefinite life, is not amortized, and is subject to a two-step impairment test on an annual basis. The first step compares the fair value of the reporting unit to its carrying amount, which includes the goodwill. When the fair value of a reporting unit exceeds its carrying amount, goodwill of the reporting unit is considered not to be impaired and the second step of the impairment test is unnecessary. If the carrying amount exceeds the implied fair value of the goodwill, the second step measures the amount of the impairment loss. If the carrying amount exceeds the fair value of the goodwill, an impairment loss is recognized equal to that excess. | |||
(l) | Impairment of long-lived assets: | ||
Long-lived assets, including property and equipment, and intangible assets other than goodwill, are assessed for potential impairment when there is evidence that events or changes in circumstances indicate that the carrying amount of an asset may not be recovered. The Company determines whether the carrying value of a long-lived depreciable asset or asset group is recoverable based on its estimates of future asset utilization and undiscounted expected future cash flows the assets are expected to generate. If the total of the expected undiscounted future cash flows is less than the carrying amount of the asset, a loss is recognized for the excess of the carrying amount over the fair value of the asset. The Company primarily uses the income approach when determining the fair value of assets. | |||
(m) | Revenue recognition: | ||
Product revenues | |||
Revenue from sales of products is recognized upon the later of transfer of title or upon shipment of the product to the customer, so long as persuasive evidence of an arrangement exists, the sales price is fixed or determinable, collectability is reasonably assured and title and delivery has occurred. Provisions for chargebacks, rebates, sales incentives and returns are provided for in the same period the related sales are recorded. | |||
Sales taxes collected from customers in various European markets that must be remitted back to the relevant government authorities are excluded from revenues. | |||
Shipping and handling costs are included in cost of sales. | |||
Licensing and other fees | |||
The Company earns royalty revenue from a collaboration and license agreement from the commercial sale of an approved product. | |||
Royalty revenue is recognized on an accrual basis when earned in accordance with the agreement terms and when royalties from the collaborative partner are determinable and collectibility is reasonably assured, such as upon the receipt of a royalty statement from the collaborative partner. | |||
Research collaborative fees | |||
The Company earns revenue from collaboration arrangements that provide for fees based on the number of full time research staff assigned to related research activities and the recovery of related research and development costs. Fees based on the number of full time research staff assigned to related research activities and the recovery of related research and development costs are recognized in income as research and collaborative fees to the extent the services are performed, are collectible, and represent the fair value of those services. | |||
(n) | Research and development costs: | ||
Research and development costs are expensed in the period incurred. | |||
(o) | Clinical trial expenses: | ||
Clinical trial expenses are a component of research and development costs and include fees paid to contract research organizations, investigators and other vendors who conduct certain product development activities on our behalf. The amount of clinical trial expenses recognized in a period related to service agreements are based on estimates of the work performed using an accrual basis of accounting. These estimates are based on patient enrollment, services provided and goods delivered, contractual terms and experience with similar contracts. The Company monitors these factors to the extent possible and adjusts our estimates accordingly. Prepaid expenses or accrued liabilities are adjusted if payments to service providers differ from estimates of the amount of service completed in a given period. | |||
(p) | Stock-based compensation and other stock-based payments: | ||
The Company grants stock options to executive officers and directors, employees and consultants pursuant to its stock option plan. The Company uses the fair value method of accounting for all stock-based awards granted, modified or settled during the period. Compensation expense is recorded based on the fair value of the award at the grant date, amortized over the vesting period. | |||
(q) | Deferred income taxes: | ||
The Company accounts for income taxes using the liability method of tax allocation. Deferred income taxes are recognized for the deferred income tax consequences attributable to differences between the carrying values of assets and liabilities and their respective income tax bases. Deferred income tax assets and liabilities are measured using enacted income tax rates expected to apply to taxable income in the years in which temporary differences are expected to be recovered or settled. The effect on deferred income tax assets and liabilities of a change in tax rates is included in income when a change in tax rates is enacted. Deferred income tax assets are evaluated periodically and if realization is not considered more likely than not, a valuation allowance is provided. | |||
(r) | Basic and diluted income per share: | ||
Basic income per share is calculated using the weighted average number of common shares outstanding during the period. | |||
Diluted income per share is calculated using the weighted average number of common shares outstanding during the period, adjusted to include the number of incremental common shares that would have been outstanding if all dilutive potential common shares had been issued. The incremental common shares related to stock options are calculated using the treasury stock method, whereby the potential proceeds from the exercise of dilutive stock options are used to purchase the Company’s common shares at the average market price during the period. | |||
(s) | Comparative figures: | ||
Certain comparative figures have been reclassified to conform with the financial statement presentation adopted for the current year | |||
Changes_in_significant_account
Changes in significant accounting policies | 12 Months Ended | |
Dec. 31, 2013 | ||
New Accounting Pronouncements and Changes In Accounting Principles [Abstract] | ' | |
New Accounting Pronouncements and Changes in Accounting Principles [Text Block] | ' | |
3. Changes in significant accounting policies: | ||
(a) Comprehensive income: | ||
In February 2013, the Financial Accounting Standards Board (“FASB”) issued amendments to the accounting guidance for presentation of comprehensive income, requiring an entity to provide additional information about reclassifications of accumulated other comprehensive income. The amendments, which are effective prospectively for reporting periods beginning after December 15, 2012, do not change the current requirements for reporting net income or other comprehensive income. On January 1, 2013, the Company prospectively adopted the amendments. The adoption of these amendments did not have a material impact on the presentation of the Company’s result of operations for the periods presented. | ||
(b) Cumulative translation adjustment: | ||
In March 2013, the FASB issued amendments on foreign currency matters relating to a parent’s accounting for the cumulative translation adjustment upon de-recognition of certain subsidiaries or groups of assets within a foreign entity or of an investment in a foreign entity. The amendments clarify the applicable guidance for the release of the cumulative translation adjustment (“CTA”) under current U.S. GAAP. On December 15, 2013, the Company prospectively adopted the amendments. The adoption of these amendments did not have a material impact on the Company’s financial position or results of operations. | ||
Acquisition
Acquisition | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Business Combinations [Abstract] | ' | |||||||
Business Combination Disclosure [Text Block] | ' | |||||||
4 | Acquisition: | |||||||
On November 18, 2013 (“Closing” or “Closing Date”), the Company completed the acquisition of Correvio LLC (“Correvio”) (the “Transaction”), a privately held pharmaceutical company headquartered in Geneva, Switzerland, focused on the worldwide marketing, excluding the United States, of AGGRASTAT™, a branded prescription pharmaceutical. The Company acquired 100% of Correvio through the purchase of a combination of assets and shares of its subsidiaries in exchange for 19.9% of the Company’s outstanding shares (pro forma ownership of approximately 16.6%) and deferred consideration of $12,000. The deferred consideration will be repaid monthly at an amount equal to 10% of cash receipts from product sales and any applicable interest accrued at 10% compounded annually. The deferred consideration must be repaid in full by December 1, 2019. | ||||||||
The Transaction was accounted for as an acquisition of a business; accordingly, the assets acquired and liabilities assumed were recorded at their respective fair values as of the acquisition date. The determination of fair value requires management to make significant estimates and assumptions. The excess of the purchase price over the preliminary value assigned to the net assets acquired was recorded as goodwill. The Transaction closed on November 18, 2013, and accordingly, the results of operations of the acquired business have been included in the Company’s results of operations since the acquisition date. Certain estimated values , predominantly intangible assets, are not yet finalized and may be subject to change. As a result, goodwill has not yet been assigned to the respective reporting units. The Company expects to finalize these amounts as soon as possible, but no later than one year from the acquisition date. | ||||||||
The Transaction accelerates the Company’s launch of BRINAVESS™ and transformation into a global commercial organization positioned for future growth, reduces BRINAVESS™ build out costs and shortens the time to profitability by providing an established operational and financial infrastructure with significant operating cost synergies. | ||||||||
A preliminary allocation of the purchase price to the assets acquired and liabilities assumed is as presented below: | ||||||||
Consideration | ||||||||
Equity instruments (2,481,596 common shares of the Company) | 9,629 | -1 | ||||||
Deferred consideration | 10,685 | -2 | ||||||
Cash consideration | 1,266 | |||||||
Fair value of total consideration transferred | $ | 21,580 | ||||||
-1 | The fair value of 19.9% of the Company’s outstanding shares issued on Closing Date (a total of 2,481,596 shares) with a value of $3.88 per share for a total of $9,629 determined based on the closing price on the last trading day immediately preceding the Transaction. | |||||||
(2) | The fair value of the deferred consideration of $12,000 incurred by the Company on Closing Date adjusted by estimated post-closing adjustments of $1,315. Post-closing adjustments are not complete. This fair value measure is based on significant inputs that are not observable in the market (Level 3 inputs) including: (a) discount factor, (b) estimate of post-closing adjustments and (c) forecasted cash receipts from product sales. | |||||||
Preliminary allocation of purchase price: | ||||||||
Assets acquired | ||||||||
Restricted cash and deposits | $ | 1,274 | ||||||
Accounts receivable | 6,142 | |||||||
Inventories | 3,781 | |||||||
Prepaid expense and other assets | 960 | |||||||
Property and equipment | 413 | |||||||
Identifiable intangible assets | 16,961 | |||||||
Goodwill | 318 | |||||||
Liabilities assumed | ||||||||
Accounts payable and accrued liabilities | 8,162 | |||||||
Deferred rent | 107 | |||||||
Fair value of net assets acquired | $ | 21,580 | ||||||
The following table provides the components of the identifiable intangible assets acquired that are subject to amortization: | ||||||||
Estimated | ||||||||
useful life | ||||||||
Marketing rights | 10 years | $ | 15,830 | |||||
Trade name | 10 years | 1,131 | ||||||
$ | 16,961 | |||||||
Correvio’s results of operations have been included in the Company’s financial statements for the period subsequent to the closing. Correvio contributed revenues of $3,805 and losses of $275 to the Company for the period from the consummation of the acquisition through December 31, 2013. The following unaudited supplemental pro forma data presents consolidated information as if the acquisition had been completed on January 1, 2012. The pro forma financial information is presented for informational purposes only and is not indicative of the results of operations that would have been achieved if the acquisition had taken place at the beginning of fiscal 2012. The pro forma financial information presented includes amortization charges for acquired tangible and intangible assets, based on the values assigned in purchase price allocation. | ||||||||
2013 | 2012 | |||||||
Pro forma information | ||||||||
Revenue | $ | 30,775 | $ | 40,120 | ||||
Income (loss) from operations | 13,814 | -22,583 | ||||||
Net income (loss) | 756 | -15,066 | ||||||
Basic and diluted income (loss) per share | $ | 0.06 | $ | -1.23 | ||||
Financial_instruments
Financial instruments | 12 Months Ended | ||
Dec. 31, 2013 | |||
Investments, All Other Investments [Abstract] | ' | ||
Financial Instruments Disclosure [Text Block] | ' | ||
5 | Financial instruments: | ||
The Company’s financial instruments consist of cash and cash equivalents, restricted cash, accounts receivable, accounts payable and accrued liabilities, and deferred consideration. The fair values of cash and cash equivalents, restricted cash, accounts receivable, and accounts payable and accrued liabilities approximate carrying values because of their short-term nature. As at December 31, 2013, the carrying value of the Company’s deferred consideration approximates its fair value based on current market borrowing rates. The deferred consideration is classified as Level 3 of the fair value hierarchy. | |||
The Company’s financial instruments are exposed to certain financial risks, including credit risk and market risk. | |||
(a) | Credit risk: | ||
Credit risk is the risk of financial loss to the Company if a partner or counterparty to a financial instrument fails to meet its contractual obligations and arises principally from the Company’s cash and cash equivalents and accounts receivable. The carrying amount of the financial assets represents the maximum credit exposure. | |||
The Company limits its exposure to credit risk on cash and cash equivalents by placing these financial instruments with high-credit quality financial institutions. | |||
The Company is subject to credit risk related to its accounts receivable. The majority of the Company’s accounts receivable arise from product sales which are primarily due from drug distributors, and hospitals. The Company monitors the creditworthiness of its customers so that it can properly assess and respond to changes in their credit profile. | |||
(b) | Market risk: | ||
Market risk is the risk that changes in market prices, such as foreign currency exchange rates and interest rates will affect the Company’s income or the value of the financial instruments held. | |||
(i) | Foreign currency risk: | ||
Foreign currency risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in foreign exchange rates. The Company is exposed to foreign currency risks as a portion of the Company’s cash and cash equivalents, accounts receivable, accounts payable and accrued liabilities, revenue, and operating expenses are denominated in other than U.S. dollars. The Company manages foreign currency risk by holding cash and cash equivalents in foreign currencies to support foreign currency forecasted cash outflows. The Company has not entered into any forward foreign exchange contracts. | |||
(ii) | Interest rate risk: | ||
Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. Financial instruments that potentially subject the Company to interest rate risk include cash and cash equivalents. | |||
The Company is exposed to interest rate cash flow risk on its cash and cash equivalents as these instruments bear interest based on current market rates. | |||
Restricted_cash
Restricted cash | 12 Months Ended | ||
Dec. 31, 2013 | |||
Cash and Cash Equivalents [Abstract] | ' | ||
Restricted Assets Disclosure [Text Block] | ' | ||
6 | Restricted cash: | ||
At December 31, 2013, restricted cash included $1,000 (2012 - $nil) relating to amounts held in escrow in a non-interest bearing account in connection with the acquisition of Correvio (note 4). This amount will be released from escrow upon the Company’s payment of all amounts owing under the deferred consideration liability plus all applicable accrued interest. | |||
The Company also held restricted cash relating to deposits which are pledged as collateral for bank guarantees for sales contracts with various hospitals and health authorities and for value-added tax liabilities of $1,158 (2012 - $nil) and $165 (2012 -$nil), respectively. Average interest rates on these deposits range from nil to 0.01% (2012- nil). | |||
Inventories
Inventories | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Inventory, Net [Abstract] | ' | |||||||
Inventory Disclosure [Text Block] | ' | |||||||
7 | Inventories: | |||||||
December 31, | December 31, | |||||||
2013 | 2012 | |||||||
Finished goods | $ | 1,941 | $ | - | ||||
Work in process | 3,052 | - | ||||||
Raw materials | 1,546 | - | ||||||
Inventory consigned to others | 58 | - | ||||||
$ | 6,597 | $ | - | |||||
Property_and_equipment
Property and equipment | 12 Months Ended | ||||||||||
Dec. 31, 2013 | |||||||||||
Property, Plant and Equipment [Abstract] | ' | ||||||||||
Property, Plant and Equipment Disclosure [Text Block] | ' | ||||||||||
8 | Property and equipment: | ||||||||||
Accumulated | Net book | ||||||||||
2013 | Cost | amortization | value | ||||||||
Laboratory equipment | $ | 629 | $ | 488 | $ | 141 | |||||
Production equipment | 286 | - | 286 | ||||||||
Software | 96 | 13 | 83 | ||||||||
Computer equipment | 144 | 87 | 57 | ||||||||
Leasehold improvements | 39 | 17 | 22 | ||||||||
Furniture and office equipment | 39 | 10 | 29 | ||||||||
$ | 1,233 | $ | 615 | $ | 618 | ||||||
Accumulated | Net book | ||||||||||
2012 | Cost | amortization | value | ||||||||
Laboratory equipment | $ | 640 | $ | 439 | $ | 201 | |||||
Computer equipment | 84 | 65 | 19 | ||||||||
Leasehold improvements | 30 | 4 | 26 | ||||||||
Furniture and office equipment | 28 | 3 | 25 | ||||||||
$ | 782 | $ | 511 | $ | 271 | ||||||
Amortization expense for the year ended December 31, 2013 amounted to $104 (year ended December 31, 2012 - $895). | |||||||||||
During the year ended December 31, 2012, as a result of its restructuring activities, the Company recorded impairment charges of $717 relating to its leasehold improvements and certain computer and office equipment (note 18). The Company did not record any impairment charges on its property and equipment for the year ended December 31, 2013. | |||||||||||
Intangible_assets
Intangible assets | 12 Months Ended | ||||||||||
Dec. 31, 2013 | |||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | ||||||||||
Intangible Assets Disclosure [Text Block] | ' | ||||||||||
9 | Intangible assets: | ||||||||||
Accumulated | Net book | ||||||||||
2013 | Cost | amortization | value | ||||||||
Marketing rights | $ | 15,830 | $ | 199 | $ | 15,631 | |||||
Trade name | 1,131 | 14 | 1,117 | ||||||||
Patents | 4,179 | 2,858 | 1,321 | ||||||||
$ | 21,140 | $ | 3,071 | $ | 18,069 | ||||||
Accumulated | Net book | ||||||||||
2012 | Cost | amortization | value | ||||||||
Patents | $ | 4,032 | $ | 2,526 | $ | 1,506 | |||||
Trade name and marketing rights were acquired in connection with the acquisition of Correvio (note 4). | |||||||||||
Amortization expense for the year ended December 31, 2013 amounted to $545 (year ended December 31, 2012 - $334). | |||||||||||
The estimated aggregate amortization expense for intangible assets held at December 31, 2013, for each of the five succeeding years is expected as follows: | |||||||||||
2014 | $ | 2,002 | |||||||||
2015 | 1,962 | ||||||||||
2016 | 1,875 | ||||||||||
2017 | 1,857 | ||||||||||
2018 | 1,825 | ||||||||||
$ | 9,521 | ||||||||||
Accounts_payable_and_accrued_l
Accounts payable and accrued liabilities | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Payables and Accruals [Abstract] | ' | |||||||
Accounts Payable, Accrued Liabilities, and Other Liabilities Disclosure, Current [Text Block] | ' | |||||||
10 | Accounts payable and accrued liabilities: | |||||||
Accounts payable and accrued liabilities comprise: | ||||||||
December 31, | December 31, | |||||||
2013 | 2012 | |||||||
Trade accounts payable | $ | 5,719 | $ | 1,045 | ||||
Accrued contract research | - | 447 | ||||||
Employee-related accruals | 3,367 | 808 | ||||||
Restructuring (note 18) | 732 | 567 | ||||||
Interest payable (notes 4 and 11) | 125 | 1,334 | ||||||
Other accrued liabilities | 4,060 | 233 | ||||||
$ | 14,003 | $ | 4,434 | |||||
Long_term_debt
Long term debt | 12 Months Ended | ||
Dec. 31, 2013 | |||
Debt Disclosure [Abstract] | ' | ||
Debt Disclosure [Text Block] | ' | ||
11 | Long term debt: | ||
Pursuant to the Collaboration Agreements with Merck (note 15), Merck granted the Company an interest-bearing credit facility of up to $100,000, secured by a first priority interest to the Company’s patents and all associated proceeds. This credit facility could be accessed in amounts of up to $25,000 annually, subject to certain minimums, from January 1, 2010 to December 31, 2013, with each advance to be fully repaid on December 31st, six years after the year in which the Company provides Merck written notice to extend the credit under the credit facility. Interest accrues at LIBOR, which resets annually, plus 8% per annum and is payable at the end of each calendar quarter. The Company borrowed $25,000 under this facility during the year ended December 31, 2012 and $25,000 during the year ended December 31, 2010. | |||
On September 25, 2012, Merck gave notice to the Company of its termination of the Collaboration Agreements (note 15). As a result of the notice of termination, Merck does not have an obligation to make further advances under the credit facility. Terms of the existing advances made under the credit facility remain the same as prior to the notice of termination of the Collaboration Agreements. | |||
On December 10, 2012, the Company reached an agreement with Merck to settle its debt obligation. Under the terms of the settlement agreement (the “Debt Settlement Agreement”), the Company will pay Merck $20,000 on or before March 31, 2013 to settle its outstanding debt of $50,000 plus accrued interest of $2,164. The settlement between the Company and Merck will terminate the credit facility and, upon payment of the $20,000 settlement amount, will release and discharge the collateral security taken in respect of the advances under the line of credit. Interest also ceased to accrue from the effective date of the settlement agreement. On December 31, 2012, the settlement agreement was amended, which allowed the Company to pay $7,000 of the $20,000 settlement amount to Merck, settling $17,500 of the original outstanding debt obligation of $50,000 and $718 of accrued interest. The Company recorded a gain on debt settlement of $11,218 for the year ended December 31, 2012. | |||
On February 28, 2013, the Debt Settlement Agreement dated December 10, 2012, and amended on December 31, 2012, between the Company and Merck, was further amended allowing the Company to pay the balance of the debt settlement amount prior to March 31, 2013. On March 1, 2013, the Company paid the remaining $13,000 of the $20,000 agreed-upon debt settlement payment, extinguishing all outstanding debt obligations to Merck. The Company recorded a gain on debt settlement of $20,834 for the year ended December 31, 2013. With this final payment, all outstanding debt obligations are extinguished and Merck has released and discharged the collateral security taken in respect of the advances under the line of credit. | |||
Stockholders_equity
Stockholders' equity | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Equity [Abstract] | ' | |||||||||||
Shareholders' Equity and Share-based Payments [Text Block] | ' | |||||||||||
12 | Stockholders’ equity: | |||||||||||
(a) | Authorized: | |||||||||||
The authorized share capital of the Company consists of an unlimited number of common shares without par value and an unlimited number of preferred shares without par value issuable in series. | ||||||||||||
(b) | Issued and outstanding: | |||||||||||
Number | ||||||||||||
Common stock | of shares | |||||||||||
Balance, December 31, 2011 | 12,225,818 | |||||||||||
Issuance of common stock (note 18) | 244,517 | |||||||||||
Balance, December 31, 2012 | 12,470,335 | |||||||||||
Issued on acquisition of Correvio (note 4) | 2,481,596 | |||||||||||
Issued for cash upon exercise of options | 5,192 | |||||||||||
Issued upon exercise of options in cashless transaction (note 12(c)) | 1,154 | |||||||||||
Balance, December 31, 2013 | 14,958,277 | |||||||||||
(c) | Stock options: | |||||||||||
The Company’s 2001 amended stock option plan (“2001 Amended Plan”) provides for the granting of options to executive officers and directors, employees, and consultants of the Company. The 2001 Amended Plan, as approved by the shareholders, permits the maximum aggregate number of common shares issuable to be 1,400,000 common shares. The shares available for issuance generally vest in equal amounts at the end of each month over periods of up to four years with a maximum term of five years. The 2001 Amended plan restricts the maximum number of stock options issuable to insiders to 10% of the issued and outstanding common shares of the Company. | ||||||||||||
On May 26, 2010, the shareholders approved amendments to the 2001 Stock Option Plan. These amendments (i) permit the cashless exercise of options without payment of cash consideration, where the option holder receives the intrinsic value of the exercised options in the form of common shares issued from treasury, and (ii) provide option holders, at the discretion of the Board of Directors or Chief Executive Officer, with a cash surrender right which entitles the holder to surrender options and receive the intrinsic value of the surrendered options in cash. | ||||||||||||
Details of the stock option transactions for the years ended December 31, 2013 and 2012 are summarized as follows: | ||||||||||||
Weighted | Weighted average | |||||||||||
average | remaining | Aggregate | ||||||||||
exercise price | contractual life | intrinsic value | ||||||||||
Number | (CAD$) | (years) | (CAD$) | |||||||||
Outstanding as at December 31, 2011 | 976,993 | 35.25 | 1.99 | Nil | ||||||||
Options granted | 590,000 | 2.1 | ||||||||||
Options forfeited | -260,431 | 30.9 | ||||||||||
Options expired | -188,450 | 59.75 | ||||||||||
Outstanding as at December 31, 2012 | 1,118,112 | 14.64 | 2.94 | 67 | ||||||||
Options granted | 545,000 | 3.28 | ||||||||||
Options exercised | -6,710 | 1.7 | ||||||||||
Options forfeited | -245,226 | 22.53 | ||||||||||
Options expired | -209,264 | 33.4 | ||||||||||
Outstanding as at December 31, 2013 | 1,201,912 | 4.68 | 3.71 | 4,400 | ||||||||
Exercisable as at December 31, 2013 | 602,438 | 6.18 | 3.14 | 2,218 | ||||||||
Vested and expected to vest as at December 31, 2013 | 1,171,343 | 4.7 | 3.69 | 4,317 | ||||||||
The outstanding options expire at various dates ranging to November 20, 2018. | ||||||||||||
At December 31, 2013, stock options to executive officers and directors, employees and consultants were outstanding as follows: | ||||||||||||
Options outstanding | Options exercisable | |||||||||||
Weighted | Weighted | Weighted | ||||||||||
average | average | average | ||||||||||
remaining | exercise | exercise | ||||||||||
Range of | contractual | price | price | |||||||||
exercise prices (CAD$) | Number | life (years) | (CAD$) | Number | (CAD$) | |||||||
$1.65 to $1.67 | 272,000 | 4.22 | 1.65 | 60,250 | 1.65 | |||||||
$1.68 to $2.08 | 268,000 | 3.25 | 1.7 | 189,956 | 1.7 | |||||||
$2.09 to $3.78 | 300,000 | 3.5 | 2.45 | 211,972 | 2.45 | |||||||
$3.79 to $43.20 | 361,912 | 3.83 | 11.01 | 140,260 | 19.84 | |||||||
1,201,912 | 3.71 | 4.68 | 602,438 | 6.18 | ||||||||
A summary of the Company’s non-vested stock option activity and related information for the year ended December 31, 2013 is as follows: | ||||||||||||
Number | Weighted average | |||||||||||
of | grant-date fair value | |||||||||||
Non-vested options | options | (U.S.$) | ||||||||||
Non-vested at December 31, 2012 | 341,686 | 1.81 | ||||||||||
Granted | 545,000 | 2.17 | ||||||||||
Vested | -256,973 | 1.87 | ||||||||||
Forfeited | -30,239 | 2.11 | ||||||||||
Non-vested at December 31, 2013 | 599,474 | 2.1 | ||||||||||
As of December 31, 2013, there was $1,349 (2012 - $281) of total unrecognized compensation cost related to non-vested stock options. That cost is expected to be recognized over a weighted average period of 1.6 years (2012 – 1.5 years). | ||||||||||||
The aggregate intrinsic value of stock options exercised during the year ended December 31, 2013 was $32. No options were exercised during the year ended December 31, 2012. | ||||||||||||
The aggregate fair value of vested options during the year ended December 31, 2013 was $444 (2012 - $1,924). | ||||||||||||
For the year ended December 31, 2013, cash received relating to the exercise of stock options was $8. The Company did not receive any cash during the year ended December 31, 2012 related to the exercise of stock options. | ||||||||||||
(d) | Stock-based compensation: | |||||||||||
The estimated fair value of options granted to executive officers and directors, and employees is amortized over the vesting period. Compensation expense is recorded in research and development expenses and selling, general and administration expenses as follows: | ||||||||||||
December 31, | December 31, | |||||||||||
2013 | 2012 | |||||||||||
Research and development | $ | - | $ | -128 | ||||||||
Selling, general and administration | 645 | 674 | ||||||||||
Total | $ | 645 | $ | 546 | ||||||||
Compensation expense for the year ended December 31, 2012 also included a $276 reversal of expenses relating to forfeiture of unvested options by terminated employees (note 18). | ||||||||||||
The weighted average fair value of stock options granted during the year ended December 31, 2013 was $2.17 (2012 - $0.22). The estimated fair value of the stock options granted was determined using the Black-Scholes option pricing model with the following weighted-average assumptions: | ||||||||||||
December 31, | December 31, | |||||||||||
2013 | 2012 | |||||||||||
Dividend yield | 0 | % | 0 | % | ||||||||
Expected volatility | 82.7 | % | 80.5 | % | ||||||||
Risk-free interest rate | 1.3 | % | 1.2 | % | ||||||||
Expected average life of the options | 3.7 years | 3.3 years | ||||||||||
Estimated forfeiture rate | 13.4 | % | 13.9 | % | ||||||||
There is no dividend yield as the Company has not paid, and does not plan to pay, dividends on its common shares. The expected volatility is based on the historical share price volatility of the Company’s daily share closing prices over a period equal to the expected life of each option grant. The risk-free interest rate is based on yields from Canadian government bond yields with a term equal to the expected term of the options being valued. The expected life of options represents the period of time that the options are expected to be outstanding based on the contractual term of the options and on historical data of option holder exercise and post-vesting employment termination behaviour. Forfeitures are estimated at the time of grant and, if necessary, management revises that estimate if actual forfeitures differ and adjusts stock-based compensation expense accordingly. | ||||||||||||
(e) | Share Consolidation | |||||||||||
On April 12, 2013, the Company’s common shares were consolidated on a one-for-five basis. All shares and per share amounts in these consolidated financial statements have been adjusted retroactively for all periods presented to reflect the effects of the share consolidation. | ||||||||||||
Basic_and_diluted_income_loss_
Basic and diluted income (loss) per share | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Earnings Per Share [Abstract] | ' | |||||||
Earnings Per Share [Text Block] | ' | |||||||
13 | Basic and diluted income (loss) per share: | |||||||
Reconciliations between basic and diluted income (loss) per shares are set forth below: | ||||||||
December 31, | December 31, | |||||||
2013 | 2012 | |||||||
Net income (loss) | $ | 4,773 | $ | -18,315 | ||||
Weighted average number of common | 12,769,844 | 12,254,546 | ||||||
shares for basic income per share | ||||||||
Dilutive effect of options | 165,012 | - | ||||||
Diluted weighted average number of common | 12,934,856 | 12,254,546 | ||||||
shares for diluted income per share | ||||||||
Basic income (loss) per share | $ | 0.37 | $ | -1.49 | ||||
Diluted income (loss) per share(1) | $ | 0.37 | $ | -1.49 | ||||
As of December 31, 2013, a total of 330,000 options are not included in the computation of diluted EPS because their effects are anti-dilutive for the year. | ||||||||
As the Company incurred a loss in 2012, all stock options were anti-dilutive and were excluded from the diluted weighted average shares. | ||||||||
Commitments
Commitments | 12 Months Ended | ||||
Dec. 31, 2013 | |||||
Commitments and Contingencies Disclosure [Abstract] | ' | ||||
Commitments Disclosure [Text Block] | ' | ||||
14 | Commitments: | ||||
(a) | Operating leases: | ||||
Future minimum annual lease payments under the leases are as follows: | |||||
2014 | $ | 489 | |||
2015 | 200 | ||||
2016 | 184 | ||||
2017 | 21 | ||||
2018 | 21 | ||||
Thereafter | 31 | ||||
Total minimum payments required | $ | 946 | |||
(a) Operating leases (continued): | |||||
Rent expense for the year ended December 31, 2013 was $129 (year ended December 31, 2012 - $1,504), net of sublease income of $651 (year ended December 31, 2012 - $618). | |||||
(b) | Commitments for clinical and other agreements: | ||||
The Company entered into various clinical and other agreements requiring it to fund future expenditures of $3,997 (year ended December 31, 2012 - $800 ) between 2014 and 2016. | |||||
(c) | Purchase commitments: | ||||
In connection with the acquisition of Correvio (note 4), the Company has purchase commitments with certain suppliers who assist in the production of AGGRASTATTM. The commitments currently extend until the end of 2015. The amount of the purchase commitment is based on physical quantities manufactured; however there is a minimum purchase obligation of $1,373 for 2014 and $1,716 for 2015. The total amount purchased under this obligation was $1,832 for the year ended December 31, 2013 (year ended December 31, 2012 - $1,729). | |||||
Collaborative_agreements
Collaborative agreements | 12 Months Ended |
Dec. 31, 2013 | |
Collaborative Agreements [Abstract] | ' |
Collaborative Arrangement Disclosure [Text Block] | ' |
15. Collaborative agreements: | |
Pursuant to two collaborative and license agreements with Merck (the “Collaboration Agreements”), the Company granted Merck exclusive global rights for the development and commercialization of vernakalant (IV) and vernakalant (oral). | |
On March 19, 2012, the Company announced Merck’s decision to discontinue further development of vernakalant (oral). | |
On September 25, 2012, Merck gave notice to the Company of its termination of the Collaboration Agreements. | |
On April 24, 2013, the Company entered into a transition agreement with Merck (the “Transition Agreement”) to amend and supplement the provisions of the Collaboration Agreements governing their rights and responsibilities in connection with the termination of the Collaboration Agreements and the transfer of rights to, and responsibilities for, vernakalant. Pursuant to the Transition Agreement, the Company took responsibility for worldwide sales, marketing, and promotion of vernakalant (IV) immediately upon signing of the agreement. Regulatory product rights and product distribution responsibility are expected to transfer to the Company upon transfer of the marketing authorization in the relevant countries. | |
On June 27, 2013, the European Commission approved the transfer of the centrally-approved marketing authorization for BRINAVESSTM from Merck. The Company is now the marketing authorization holder for BRINAVESSTM in the member states of the European Union (“EU”). With the completion of this transfer, commencing July 1, 2013, royalties on sales and the promotional services fee the Company previously received from Merck ceased and the Company began benefiting from sales of BRINAVESSTM throughout the world. | |
On September 16, 2013, the Company announced the completion of the transfer from Merck to the Company of commercialization responsibility for BRINAVESSTM in the EU and the transfer of responsibility to complete the post-marketing study for BRINAVESSTM. The Company is now supplying BRINAVESSTM under its own trade dress in the EU. | |
Royalty_agreement
Royalty agreement | 12 Months Ended | ||
Dec. 31, 2013 | |||
Royalty Agreement [Abstract] | ' | ||
Royalty agreement [Text Block] | ' | ||
16 | Royalty agreement: | ||
In connection with the acquisition of Correvio (note 4), the Company has acquired a 50-year distribution agreement with Aspen Global Incorporated (“Aspen”), a company organized under the laws of Mauritius, under which the Company granted to Aspen exclusive distribution rights for AGGRASTATTM in the entire African continent, excluding Egypt; in Australia and New Zealand; in the entire South and Central American continents including Mexico and the Caribbean islands, but excluding Puerto Rico; in Bermuda; and in a portion of the continent of Asia. Under the terms of the agreement, the Company is entitled to a 55% royalty on profits from sales of the product in these territories through January 25, 2059. | |||
Income_taxes
Income taxes | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Income Tax Disclosure [Abstract] | ' | |||||||
Income Tax Disclosure [Text Block] | ' | |||||||
17 | Income taxes: | |||||||
The reconciliation of income tax computed at statutory tax rates to income tax expense (recovery), using a 25.8% (2012 – 25.0%) statutory tax rate, is: | ||||||||
December 31, | December 31, | |||||||
2013 | 2012 | |||||||
Tax recovery at Canadian statutory income tax rates | $ | 1,229 | $ | -4,579 | ||||
Change in valuation allowance | 405 | 4,001 | ||||||
Permanent and other differences | -185 | 562 | ||||||
Tax rate differences | -1,347 | 16 | ||||||
Income tax expense | $ | 102 | $ | - | ||||
The components of earnings (loss) before income taxes consist of the following: | ||||||||
2013 | 2012 | |||||||
Canadian | $ | 12,245 | $ | -18,315 | ||||
Foreign | -7,370 | - | ||||||
Income (loss) before income taxes | $ | 4,875 | $ | -18,315 | ||||
Significant components of the Company’s deferred tax assets and liabilities are shown below: | ||||||||
December 31, | December 31, | |||||||
2013 | 2012 | |||||||
Deferred tax assets: | ||||||||
Tax loss carryforwards | $ | 70,054 | $ | 60,784 | ||||
Research and development deductions and credits | 14,748 | 14,198 | ||||||
Tax values of depreciable assets in excess of accounting values | 2,485 | 2,871 | ||||||
Share issue costs and other | 517 | 38 | ||||||
Total deferred tax assets | 87,804 | 77,891 | ||||||
Valuation allowance | -87,804 | -77,891 | ||||||
Total deferred tax assets | - | - | ||||||
Deferred tax liabilities | - | - | ||||||
Net tax asset | $ | - | $ | - | ||||
At December 31, 2013, the Company has investment tax credits of $18,454 (2012 - $18,399 ) available to reduce deferred income taxes otherwise payable. The Company also has total loss carryforwards of $292,754 (2012 - $253,493) available to offset future taxable income in Canada ($159,656), Switzerland ($85,842), the United States ($45,316), United Kingdom ($1,061), and Germany ($879). | ||||||||
The investment tax credits and non-capital losses for income tax purposes expire as follows: | ||||||||
Investment | Non-capital | |||||||
tax credits | losses | |||||||
2015 | $ | 352 | $ | 12,652 | ||||
2016 | 1,064 | 8,475 | ||||||
2017 | 975 | 3,861 | ||||||
2018 | 158 | 39,375 | ||||||
2019 | 501 | 7,392 | ||||||
Thereafter | 15,404 | 220,999 | ||||||
$ | 18,454 | $ | 292,754 | |||||
The amount of liability for unrecognized tax benefits under U.S. GAAP as of December 31, 2013 is $nil (2012 - $nil). | ||||||||
The Company recognizes interest and penalties related to income taxes in interest and other income. To date, the Company has not incurred any significant interest and penalties. The Company is subject to assessments by various taxation authorities which may interpret tax legislations and tax filing positions differently from the Company. The Company provides for such differences when it is likely that a taxation authority will not sustain the Company’s filing position and the amount of the tax exposure can be reasonably estimated. As at December 31, 2013, a provision of $nil (2012 - $nil) has been made in the financial statements for estimated tax liabilities. Tax years ranging from 2004 to 2012 remain subject to examination in the various countries we operate in. | ||||||||
Restructuring
Restructuring | 12 Months Ended | |||||||||
Dec. 31, 2013 | ||||||||||
Restructuring and Related Activities [Abstract] | ' | |||||||||
Restructuring, Impairment, and Other Activities Disclosure [Text Block] | ' | |||||||||
18 | Restructuring: | |||||||||
In connection with the acquisition of Correvio (note 4), the Company terminated several employees subsequent to the closing, in its efforts to integrate Correvio’s operations. | ||||||||||
In March and July of 2012, the Company reduced its workforce, exited redundant leased facilities and terminated certain contracts. The workforce reduction initiative was completed in 2012, with the related liability substantially paid out in the first quarter of 2013. Idle-use expense and other charges recognized in the year ended December 31, 2012 included lease termination costs settled by the issuance of common shares (note 12(b)) and other non-cash items. The majority of the liability associated with idle-use expense and other charges, which is related to redundant leased facilities, is expected to be settled by the end of the first quarter of 2014. | ||||||||||
The following table summarizes the provisions related to the restructuring for the years ended December 31, 2013 and 2012: | ||||||||||
Employee | Idle-use | |||||||||
termination | expense and | Asset | ||||||||
benefits | other charges | impairments | Total | |||||||
Restructuring expense recognized | 5,553 | 3,770 | 717 | 10,040 | ||||||
Payments made | -5,509 | -3,462 | - | -8,971 | ||||||
Non-cash items | 276 | -61 | -717 | -502 | ||||||
Balance at December 31, 2012 | 320 | 247 | - | 567 | ||||||
Restructuring expense recognized | 1,336 | - | - | 1,336 | ||||||
Revisions to prior accruals | -12 | -117 | - | -129 | ||||||
Payments made | -926 | -30 | - | -956 | ||||||
Non-cash items | - | -86 | - | -86 | ||||||
Balance at December 31, 2013 | 718 | 14 | - | 732 | ||||||
Related_party_transactions
Related party transactions | 12 Months Ended | ||
Dec. 31, 2013 | |||
Related Party Transactions [Abstract] | ' | ||
Related Party Transactions Disclosure [Text Block] | ' | ||
19 | Related party transactions: | ||
The Company has incurred expenses for services provided by a law firm in which a director of one of the Company’s wholly owned subsidiaries is a partner. The amounts charged are recorded at their exchange amounts and are subject to normal trade terms. For the year ended December 31, 2013, the Company has incurred legal fees of $174 (year ended December 31, 2012 - $14) for services provided by the law firm relating to general corporate matters. Included in accounts payable and accrued liabilities at December 31, 2013 is an amount of $66 (2012 - $16) owing to the legal firm. | |||
The Company has also incurred expenses for services provided by an accounting firm in which a director of one of the Company’s wholly owned subsidiaries is a director. The amounts charged are recorded at their exchange amounts and are subject to normal trade terms. For the year ended December 31, 2013, the Company has incurred accounting fees of $91 (year ended December 31, 2012 - $23) for services provided by the accounting firm relating to general corporate matters. Included in accounts payable and accrued liabilities at December 31, 2013 is an amount of $25 (2012 - $12) owing to the accounting firm. | |||
Prior to October 15, 2012, a partner of a law firm served as the Company’s corporate secretary. Services provided by the law firm primarily related to general corporate matters. Amounts charged for these services were recorded at their exchange amounts and were subject to normal trade terms. Total expenses for services provided while the partner served as the Company's corporate secretary for the year ended December 31, 2012 were $794. Included in accounts payable and accrued liabilities at December 31, 2012 was $41 owing to the legal firm. | |||
Contingencies
Contingencies | 12 Months Ended | ||
Dec. 31, 2013 | |||
Commitments and Contingencies Disclosure [Abstract] | ' | ||
Contingencies Disclosure [Text Block] | ' | ||
20 | Contingencies: | ||
(a) | The Company may, from time to time, be subject to claims and legal proceedings brought against it in the normal course of business. Such matters are subject to many uncertainties. Management believes that adequate provisions have been made in the accounts where required and the ultimate resolution of such contingencies will not have a material adverse effect on the consolidated financial position of the Company. | ||
(b) | The Company entered into indemnification agreements with all officers and directors. The maximum potential amount of future payments required under these indemnification agreements is unlimited. However, the Company maintains appropriate liability insurance that limits the exposure and enables the Company to recover any future amounts paid, less any deductible amounts pursuant to the terms of the respective policies, the amounts of which are not considered material. | ||
(c) | The Company has entered into license and research agreements with third parties that include indemnification provisions that are customary in the industry. These indemnification provisions generally require the Company to compensate the other party for certain damages and costs incurred as a result of third party claims or damages arising from these transactions. In some cases, the maximum potential amount of future payments that could be required under these indemnification provisions is unlimited. These indemnification provisions may survive termination of the underlying agreement. The nature of the indemnification obligations prevents the Company from making a reasonable estimate of the maximum potential amount it could be required to pay. Historically, the Company has not made any indemnification payments under such agreements and no amount has been accrued in the accompanying consolidated financial statements with respect to these indemnification obligations. | ||
Segmented_information
Segmented information | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Segment Reporting [Abstract] | ' | ||||||||||||
Segment Reporting Disclosure [Text Block] | ' | ||||||||||||
21 | Segmented information: | ||||||||||||
The Company previously operated in one business segment with substantially all of its consolidated assets and operations located in Canada. During the year ended December 31, 2012, 100% of total revenue was derived from collaborative partners (note 15). | |||||||||||||
During the third quarter of 2013, the Company began recognizing revenue from product sales at which time management began to measure the Company’s operations by the geographic area in which such products are sold. | |||||||||||||
Year ended December 31, 2013 | Europe | Rest of World | Total | ||||||||||
Revenue | $ | 1,897 | $ | 2,614 | $ | 4,511 | |||||||
Cost of goods sold | 622 | 314 | 936 | ||||||||||
Gross margin | 1,275 | 2,300 | 3,575 | ||||||||||
Gross margin % | 67 | % | 88 | % | 79 | % | |||||||
Interest income (expense) | -125 | 38 | -87 | ||||||||||
Amortization expense on property and equipment | 5 | 99 | 104 | ||||||||||
Year ended December 31, 2012 | Europe | Rest of World | Total | ||||||||||
Revenue | $ | - | $ | 789 | $ | 789 | |||||||
Cost of goods sold | - | - | - | ||||||||||
Gross margin | - | 789 | 789 | ||||||||||
Gross margin % | - | 100 | % | 100 | % | ||||||||
Interest expense | - | -4,268 | -4,268 | ||||||||||
Amortization expense on property and equipment | - | 895 | 895 | ||||||||||
Property and equipment by geographic area were as follows: | |||||||||||||
As at December 31 | 2013 | 2012 | |||||||||||
Europe | $ | 132 | $ | - | |||||||||
Rest of World | 486 | 271 | |||||||||||
$ | 618 | $ | 271 | ||||||||||
Subsequent_events
Subsequent events | 12 Months Ended | ||
Dec. 31, 2013 | |||
Subsequent Events [Abstract] | ' | ||
Subsequent Events [Text Block] | ' | ||
22 | Subsequent events: | ||
On March 11, 2014, the Company completed a prospectus offering of 1,500,000 common shares from treasury for gross proceeds of CAD $15 million and 1,500,000 common shares in a secondary offering from CarCor Investment Holdings LLC, the shareholder from which we purchased Correvio, for gross proceeds of CAD $15 million, both at CAD $10.00 per common share, for a combined offering of CAD $30 million. This short form prospectus offering was made on a bought deal basis. | |||
Significant_accounting_policie1
Significant accounting policies (Policies) | 12 Months Ended | ||
Dec. 31, 2013 | |||
Accounting Policies [Abstract] | ' | ||
Principles of consolidation | ' | ||
(a) | Principles of consolidation: | ||
These consolidated financial statements include the accounts of Cardiome Pharma Corp. and its wholly-owned subsidiaries. Intercompany accounts and transactions have been eliminated on consolidation. | |||
Use of estimates | ' | ||
(b) | Use of estimates: | ||
The preparation of the consolidated financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts recorded in the consolidated financial statements. Significant areas requiring the use of estimates relate to accounting for amounts recorded in connection with business combinations, recoverability of inventories, the valuation and assessment of net recoverable value and amortization period of intangible assets, accrual of clinical trial and research expenses, reporting of revenue recognition, bad debt and doubtful accounts, income taxes, accounting for stock-based compensation expense , and commitments and contingencies. The reported amounts and note disclosure are determined using management’s best estimates based on assumptions that reflect the most probable set of economic conditions and planned course of action. Actual results could differ from those estimates. | |||
Business combinations | ' | ||
(c) | Business combinations: | ||
In a business combination, the acquisition method of accounting requires that the assets acquired and liabilities assumed be recorded as of the date of the merger or acquisition at their respective fair values with limited exceptions. Assets acquired and liabilities assumed in a business combination that arise from contingencies are recognized at fair value if fair value can reasonably be estimated. If the acquisition date fair value of an asset acquired or liability assumed that arises from a contingency cannot be determined, the asset or liability is recognized if probable and reasonably estimable; if these criteria are not met, no asset or liability is recognized. Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Accordingly, the Company may be required to value assets at fair value measures that do not reflect the Company’s intended use of those assets. Any excess of the purchase price (consideration transferred) over the estimated fair values of net assets acquired is recorded as goodwill. Transaction costs and costs to restructure the acquired company are expensed as incurred. The operating results of the acquired business are reflected in the Company’s consolidated financial statements after the date of the merger or acquisition. If the Company determines the assets acquired do not meet the definition of a business under the acquisition method of accounting, the transaction will be accounted for as an acquisition of assets rather than a business combination and, therefore, no goodwill will be recorded. | |||
Foreign currency translation | ' | ||
(d) | Foreign currency translation: | ||
The net assets of foreign subsidiaries where the local currencies have been determined to be the functional currencies are translated into U.S. dollars using exchange rates at the balance sheet dates. Equity is translated at historical rates and revenue and expenses are translated at exchange rates prevailing during the period. The foreign exchange gains and losses arising from translation are recorded in the foreign currency translation account, which is included in other comprehensive income (loss) and reflected as a separate component of equity. For those subsidiaries where the U.S. dollar has been determined to be the functional currency, nonmonetary foreign currency assets and liabilities are translated using historical rates, while monetary assets and liabilities are translated at the period-end exchange rates. Revenues and expenses denominated in foreign currencies are translated at exchange rates prevailing during the period. Foreign exchange gains and losses are recorded in net income (loss) for the period. | |||
Fair value measurements of financial instruments | ' | ||
(e) | Fair value measurements of financial instruments: | ||
Fair value measurements of financial instruments are determined by using a fair value hierarchy that prioritizes the inputs to valuation techniques into three levels according to the relative reliability of the inputs used to estimate the fair values. | |||
The three levels of inputs used to measure fair value are as follows: | |||
Level 1 - Unadjusted quoted prices in active markets for identical financial instruments; | |||
Level 2 - Inputs other than quoted prices that are observable for the financial instrument either directly or indirectly; and | |||
Level 3 - Inputs that are not based on observable market data. | |||
In determining fair value measurements, the most observable inputs are used when available. The fair value hierarchy level at which a financial instrument is categorized is determined on the basis of the lowest level input that is significant to the fair value measurement. | |||
Cash and cash equivalents | ' | ||
(f) | Cash and cash equivalents: | ||
The Company considers all highly liquid investments with an original maturity of 90 days or less, when acquired, to be cash equivalents, which are carried at fair value and are designated as held for trading. | |||
Allowance for doubtful accounts receivable | ' | ||
(g) | Allowance for doubtful accounts receivable: | ||
The Company estimates an allowance for doubtful accounts receivable primarily based on the credit worthiness of customers, aging of receivable balances and general economic conditions. Amounts later determined and specifically identified to be uncollectible are charged against this allowance. | |||
Inventories | ' | ||
(h) | Inventories: | ||
Inventories consist of finished goods, unfinished product (work in process) and raw materials and are valued at the lower of cost and net realizable value, determined on a first-in-first-out basis, and include expenditures incurred in acquiring the inventories, production or conversion costs and other costs incurred in bringing them to their existing location and condition. | |||
Net realizable value is the estimated selling price in the ordinary course of business, less the estimated costs of completion and selling expenses. | |||
The components of inventory and inventory purchase commitments are reviewed on a regular basis for excess and obsolete inventory based on estimated future usage and sales. Writedowns in inventory value or losses on inventory purchase commitments depend on various items, including factors related to demand from drug distributors and hospitals, and economic conditions. Management believes that the estimates used in calculating the inventory provision are reasonable and properly reflect the risk of excess and obsolete inventory. | |||
Property and equipment | ' | ||
(i) | Property and equipment: | ||
Property and equipment are recorded at cost less accumulated amortization. Amortization is provided using the straight-line method over the following terms: | |||
Asset | Rate | ||
Laboratory equipment | 5 years | ||
Production equipment | 7 years | ||
Computer equipment | 3-5 years | ||
Software | 3-5 years | ||
Furniture and office equipment | 5-7 years | ||
Leasehold improvements are amortized on a straight-line basis over the lesser of their estimated useful life or the initial lease term. | |||
Intangible assets | ' | ||
(j) | Intangible assets: | ||
Intangible assets are comprised of patent costs, trade name and marketing rights. Patent costs which are associated with the preparation, filing, and obtaining of patents are capitalized. Maintenance costs of patents are expensed as incurred. | |||
The estimated useful life of intangible assets with definite life is the period over which the assets are expected to contribute to future cash flows. When determining the useful life, the Company considers the expected use of the asset, useful life of a related intangible asset, any legal, regulatory or contractual provisions that limit the useful life, any legal, regulatory, or contractual renewal or extension provisions without substantial costs or modifications to the existing terms and conditions, the effects of obsolescence, demand, competition and other economic factors, and the expected level of maintenance expenditures relative to the cost of the asset required to obtain future cash flows from the asset. | |||
Amortization is provided using the straight-line method over the following terms: | |||
Asset | Rate | ||
Patents | over the useful life | ||
Trade name | 10 years | ||
Marketing rights | 10 years | ||
Goodwill | ' | ||
(k) | Goodwill: | ||
Goodwill represents the excess of the purchase price of an acquired enterprise over the fair value assigned to assets acquired and liabilities assumed in a business combination. Goodwill is allocated as of the date of the business combination to the reporting units that are expected to benefit from the synergies of the business combination. | |||
Goodwill has an indefinite life, is not amortized, and is subject to a two-step impairment test on an annual basis. The first step compares the fair value of the reporting unit to its carrying amount, which includes the goodwill. When the fair value of a reporting unit exceeds its carrying amount, goodwill of the reporting unit is considered not to be impaired and the second step of the impairment test is unnecessary. If the carrying amount exceeds the implied fair value of the goodwill, the second step measures the amount of the impairment loss. If the carrying amount exceeds the fair value of the goodwill, an impairment loss is recognized equal to that excess. | |||
Impairment of long-lived assets | ' | ||
(l) | Impairment of long-lived assets: | ||
Long-lived assets, including property and equipment, and intangible assets other than goodwill, are assessed for potential impairment when there is evidence that events or changes in circumstances indicate that the carrying amount of an asset may not be recovered. The Company determines whether the carrying value of a long-lived depreciable asset or asset group is recoverable based on its estimates of future asset utilization and undiscounted expected future cash flows the assets are expected to generate. If the total of the expected undiscounted future cash flows is less than the carrying amount of the asset, a loss is recognized for the excess of the carrying amount over the fair value of the asset. The Company primarily uses the income approach when determining the fair value of assets. | |||
Revenue recognition | ' | ||
(m) | Revenue recognition: | ||
Product revenues | |||
Revenue from sales of products is recognized upon the later of transfer of title or upon shipment of the product to the customer, so long as persuasive evidence of an arrangement exists, the sales price is fixed or determinable, collectability is reasonably assured and title and delivery has occurred. Provisions for chargebacks, rebates, sales incentives and returns are provided for in the same period the related sales are recorded. | |||
Sales taxes collected from customers in various European markets that must be remitted back to the relevant government authorities are excluded from revenues. | |||
Shipping and handling costs are included in cost of sales. | |||
Licensing and other fees | |||
The Company earns royalty revenue from a collaboration and license agreement from the commercial sale of an approved product. | |||
Royalty revenue is recognized on an accrual basis when earned in accordance with the agreement terms and when royalties from the collaborative partner are determinable and collectibility is reasonably assured, such as upon the receipt of a royalty statement from the collaborative partner. | |||
Research collaborative fees | |||
The Company earns revenue from collaboration arrangements that provide for fees based on the number of full time research staff assigned to related research activities and the recovery of related research and development costs. Fees based on the number of full time research staff assigned to related research activities and the recovery of related research and development costs are recognized in income as research and collaborative fees to the extent the services are performed, are collectible, and represent the fair value of those services. | |||
Research and development costs | ' | ||
(n) | Research and development costs: | ||
Research and development costs are expensed in the period incurred. | |||
Clinical trial expenses | ' | ||
(o) | Clinical trial expenses: | ||
Clinical trial expenses are a component of research and development costs and include fees paid to contract research organizations, investigators and other vendors who conduct certain product development activities on our behalf. The amount of clinical trial expenses recognized in a period related to service agreements are based on estimates of the work performed using an accrual basis of accounting. These estimates are based on patient enrollment, services provided and goods delivered, contractual terms and experience with similar contracts. The Company monitors these factors to the extent possible and adjusts our estimates accordingly. Prepaid expenses or accrued liabilities are adjusted if payments to service providers differ from estimates of the amount of service completed in a given period. | |||
Stock-based compensation and other stock-based payments | ' | ||
(p) | Stock-based compensation and other stock-based payments: | ||
The Company grants stock options to executive officers and directors, employees and consultants pursuant to its stock option plan. The Company uses the fair value method of accounting for all stock-based awards granted, modified or settled during the period. Compensation expense is recorded based on the fair value of the award at the grant date, amortized over the vesting period. | |||
Deferred income taxes | ' | ||
(q) | Deferred income taxes: | ||
The Company accounts for income taxes using the liability method of tax allocation. Deferred income taxes are recognized for the deferred income tax consequences attributable to differences between the carrying values of assets and liabilities and their respective income tax bases. Deferred income tax assets and liabilities are measured using enacted income tax rates expected to apply to taxable income in the years in which temporary differences are expected to be recovered or settled. The effect on deferred income tax assets and liabilities of a change in tax rates is included in income when a change in tax rates is enacted. Deferred income tax assets are evaluated periodically and if realization is not considered more likely than not, a valuation allowance is provided. | |||
Basic and diluted income per share | ' | ||
(r) | Basic and diluted income per share: | ||
Basic income per share is calculated using the weighted average number of common shares outstanding during the period. | |||
Diluted income per share is calculated using the weighted average number of common shares outstanding during the period, adjusted to include the number of incremental common shares that would have been outstanding if all dilutive potential common shares had been issued. The incremental common shares related to stock options are calculated using the treasury stock method, whereby the potential proceeds from the exercise of dilutive stock options are used to purchase the Company’s common shares at the average market price during the period. | |||
Comparative figures | ' | ||
(s) | Comparative figures: | ||
Certain comparative figures have been reclassified to conform with the financial statement presentation adopted for the current year. | |||
Significant_accounting_policie2
Significant accounting policies (Tables) | 12 Months Ended | ||
Dec. 31, 2013 | |||
Accounting Policies [Abstract] | ' | ||
Schedule Of Property Plant and Equipment Estimated Useful Life [Table Text Block] | ' | ||
Property and equipment are recorded at cost less accumulated amortization. Amortization is provided using the straight-line method over the following terms: | |||
Asset | Rate | ||
Laboratory equipment | 5 years | ||
Production equipment | 7 years | ||
Computer equipment | 3-5 years | ||
Software | 3-5 years | ||
Furniture and office equipment | 5-7 years | ||
Finite Lived Intangible Assets Estimated Useful Life [Table Text Block] | ' | ||
Amortization is provided using the straight-line method over the following terms: | |||
Asset | Rate | ||
Patents | over the useful life | ||
Trade name | 10 years | ||
Marketing rights | 10 years | ||
Acquisition_Tables
Acquisition (Tables) | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Business Combinations [Abstract] | ' | |||||||
Schedule Of Business Acquisition Consideration [Table Text Block] | ' | |||||||
A preliminary allocation of the purchase price to the assets acquired and liabilities assumed is as presented below: | ||||||||
Consideration | ||||||||
Equity instruments (2,481,596 common shares of the Company) | 9,629 | -1 | ||||||
Deferred consideration | 10,685 | -2 | ||||||
Cash consideration | 1,266 | |||||||
Fair value of total consideration transferred | $ | 21,580 | ||||||
-1 | The fair value of 19.9% of the Company’s outstanding shares issued on Closing Date (a total of 2,481,596 shares) with a value of $3.88 per share for a total of $9,629 determined based on the closing price on the last trading day immediately preceding the Transaction. | |||||||
(2) | The fair value of the deferred consideration of $12,000 incurred by the Company on Closing Date adjusted by estimated post-closing adjustments of $1,315. Post-closing adjustments are not complete. This fair value measure is based on significant inputs that are not observable in the market (Level 3 inputs) including: (a) discount factor, (b) estimate of post-closing adjustments and (c) forecasted cash receipts from product sales. | |||||||
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed [Table Text Block] | ' | |||||||
Preliminary allocation of purchase price: | ||||||||
Assets acquired | ||||||||
Restricted cash and deposits | $ | 1,274 | ||||||
Accounts receivable | 6,142 | |||||||
Inventories | 3,781 | |||||||
Prepaid expense and other assets | 960 | |||||||
Property and equipment | 413 | |||||||
Identifiable intangible assets | 16,961 | |||||||
Goodwill | 318 | |||||||
Liabilities assumed | ||||||||
Accounts payable and accrued liabilities | 8,162 | |||||||
Deferred rent | 107 | |||||||
Fair value of net assets acquired | $ | 21,580 | ||||||
Schedule of Finite-Lived Intangible Assets Acquired as Part of Business Combination [Table Text Block] | ' | |||||||
The following table provides the components of the identifiable intangible assets acquired that are subject to amortization: | ||||||||
Estimated | ||||||||
useful life | ||||||||
Marketing rights | 10 years | $ | 15,830 | |||||
Trade name | 10 years | 1,131 | ||||||
$ | 16,961 | |||||||
Business Acquisition, Pro Forma Information [Table Text Block] | ' | |||||||
The pro forma financial information presented includes amortization charges for acquired tangible and intangible assets, based on the values assigned in purchase price allocation. | ||||||||
2013 | 2012 | |||||||
Pro forma information | ||||||||
Revenue | $ | 30,775 | $ | 40,120 | ||||
Income (loss) from operations | 13,814 | -22,583 | ||||||
Net income (loss) | 756 | -15,066 | ||||||
Basic and diluted income (loss) per share | $ | 0.06 | $ | -1.23 | ||||
Inventories_Tables
Inventories (Tables) | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Inventory, Net [Abstract] | ' | |||||||
Schedule of Inventory, Current [Table Text Block] | ' | |||||||
December 31, | December 31, | |||||||
2013 | 2012 | |||||||
Finished goods | $ | 1,941 | $ | - | ||||
Work in process | 3,052 | - | ||||||
Raw materials | 1,546 | - | ||||||
Inventory consigned to others | 58 | - | ||||||
$ | 6,597 | $ | - | |||||
Property_and_equipment_Tables
Property and equipment (Tables) | 12 Months Ended | ||||||||||
Dec. 31, 2013 | |||||||||||
Property, Plant and Equipment [Abstract] | ' | ||||||||||
Property, Plant and Equipment [Table Text Block] | ' | ||||||||||
Accumulated | Net book | ||||||||||
2013 | Cost | amortization | value | ||||||||
Laboratory equipment | $ | 629 | $ | 488 | $ | 141 | |||||
Production equipment | 286 | - | 286 | ||||||||
Software | 96 | 13 | 83 | ||||||||
Computer equipment | 144 | 87 | 57 | ||||||||
Leasehold improvements | 39 | 17 | 22 | ||||||||
Furniture and office equipment | 39 | 10 | 29 | ||||||||
$ | 1,233 | $ | 615 | $ | 618 | ||||||
Accumulated | Net book | ||||||||||
2012 | Cost | amortization | value | ||||||||
Laboratory equipment | $ | 640 | $ | 439 | $ | 201 | |||||
Computer equipment | 84 | 65 | 19 | ||||||||
Leasehold improvements | 30 | 4 | 26 | ||||||||
Furniture and office equipment | 28 | 3 | 25 | ||||||||
$ | 782 | $ | 511 | $ | 271 | ||||||
Intangible_assets_Tables
Intangible assets (Tables) | 12 Months Ended | ||||||||||
Dec. 31, 2013 | |||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | ||||||||||
Schedule of Finite-Lived Intangible Assets [Table Text Block] | ' | ||||||||||
Accumulated | Net book | ||||||||||
2013 | Cost | amortization | value | ||||||||
Marketing rights | $ | 15,830 | $ | 199 | $ | 15,631 | |||||
Trade name | 1,131 | 14 | 1,117 | ||||||||
Patents | 4,179 | 2,858 | 1,321 | ||||||||
$ | 21,140 | $ | 3,071 | $ | 18,069 | ||||||
Accumulated | Net book | ||||||||||
2012 | Cost | amortization | value | ||||||||
Patents | $ | 4,032 | $ | 2,526 | $ | 1,506 | |||||
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block] | ' | ||||||||||
The estimated aggregate amortization expense for intangible assets held at December 31, 2013, for each of the five succeeding years is expected as follows: | |||||||||||
2014 | $ | 2,002 | |||||||||
2015 | 1,962 | ||||||||||
2016 | 1,875 | ||||||||||
2017 | 1,857 | ||||||||||
2018 | 1,825 | ||||||||||
$ | 9,521 | ||||||||||
Accounts_payable_and_accrued_l1
Accounts payable and accrued liabilities (Tables) | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Payables and Accruals [Abstract] | ' | |||||||
Schedule of Accounts Payable and Accrued Liabilities [Table Text Block] | ' | |||||||
Accounts payable and accrued liabilities comprise: | ||||||||
December 31, | December 31, | |||||||
2013 | 2012 | |||||||
Trade accounts payable | $ | 5,719 | $ | 1,045 | ||||
Accrued contract research | - | 447 | ||||||
Employee-related accruals | 3,367 | 808 | ||||||
Restructuring (note 18) | 732 | 567 | ||||||
Interest payable (notes 4 and 11) | 125 | 1,334 | ||||||
Other accrued liabilities | 4,060 | 233 | ||||||
$ | 14,003 | $ | 4,434 | |||||
Stockholders_equity_Tables
Stockholders' equity (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Equity [Abstract] | ' | |||||||||||
Schedule of Common Stock Outstanding Roll Forward [Table Text Block] | ' | |||||||||||
Number | ||||||||||||
Common stock | of shares | |||||||||||
Balance, December 31, 2011 | 12,225,818 | |||||||||||
Issuance of common stock (note 18) | 244,517 | |||||||||||
Balance, December 31, 2012 | 12,470,335 | |||||||||||
Issued on acquisition of Correvio (note 4) | 2,481,596 | |||||||||||
Issued for cash upon exercise of options | 5,192 | |||||||||||
Issued upon exercise of options in cashless transaction (note 12(c)) | 1,154 | |||||||||||
Balance, December 31, 2013 | 14,958,277 | |||||||||||
Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block] | ' | |||||||||||
Details of the stock option transactions for the years ended December 31, 2013 and 2012 are summarized as follows: | ||||||||||||
Weighted | Weighted average | |||||||||||
average | remaining | Aggregate | ||||||||||
exercise price | contractual life | intrinsic value | ||||||||||
Number | (CAD$) | (years) | (CAD$) | |||||||||
Outstanding as at December 31, 2011 | 976,993 | 35.25 | 1.99 | Nil | ||||||||
Options granted | 590,000 | 2.1 | ||||||||||
Options forfeited | -260,431 | 30.9 | ||||||||||
Options expired | -188,450 | 59.75 | ||||||||||
Outstanding as at December 31, 2012 | 1,118,112 | 14.64 | 2.94 | 67 | ||||||||
Options granted | 545,000 | 3.28 | ||||||||||
Options exercised | -6,710 | 1.7 | ||||||||||
Options forfeited | -245,226 | 22.53 | ||||||||||
Options expired | -209,264 | 33.4 | ||||||||||
Outstanding as at December 31, 2013 | 1,201,912 | 4.68 | 3.71 | 4,400 | ||||||||
Exercisable as at December 31, 2013 | 602,438 | 6.18 | 3.14 | 2,218 | ||||||||
Vested and expected to vest as at December 31, 2013 | 1,171,343 | 4.7 | 3.69 | 4,317 | ||||||||
Schedule of Share-based Compensation, Shares Authorized under Stock Option Plans, by Exercise Price Range [Table Text Block] | ' | |||||||||||
At December 31, 2013, stock options to executive officers and directors, employees and consultants were outstanding as follows: | ||||||||||||
Options outstanding | Options exercisable | |||||||||||
Weighted | Weighted | Weighted | ||||||||||
average | average | average | ||||||||||
remaining | exercise | exercise | ||||||||||
Range of | contractual | price | price | |||||||||
exercise prices (CAD$) | Number | life (years) | (CAD$) | Number | (CAD$) | |||||||
$1.65 to $1.67 | 272,000 | 4.22 | 1.65 | 60,250 | 1.65 | |||||||
$1.68 to $2.08 | 268,000 | 3.25 | 1.7 | 189,956 | 1.7 | |||||||
$2.09 to $3.78 | 300,000 | 3.5 | 2.45 | 211,972 | 2.45 | |||||||
$3.79 to $43.20 | 361,912 | 3.83 | 11.01 | 140,260 | 19.84 | |||||||
1,201,912 | 3.71 | 4.68 | 602,438 | 6.18 | ||||||||
Schedule Of Nonvested Option Activity [Table Text Block] | ' | |||||||||||
A summary of the Company’s non-vested stock option activity and related information for the year ended December 31, 2013 is as follows: | ||||||||||||
Number | Weighted average | |||||||||||
of | grant-date fair value | |||||||||||
Non-vested options | options | (U.S.$) | ||||||||||
Non-vested at December 31, 2012 | 341,686 | 1.81 | ||||||||||
Granted | 545,000 | 2.17 | ||||||||||
Vested | -256,973 | 1.87 | ||||||||||
Forfeited | -30,239 | 2.11 | ||||||||||
Non-vested at December 31, 2013 | 599,474 | 2.1 | ||||||||||
Schedule of Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Table Text Block] | ' | |||||||||||
Compensation expense is recorded in research and development expenses and selling, general and administration expenses as follows: | ||||||||||||
December 31, | December 31, | |||||||||||
2013 | 2012 | |||||||||||
Research and development | $ | - | $ | -128 | ||||||||
Selling, general and administration | 645 | 674 | ||||||||||
Total | $ | 645 | $ | 546 | ||||||||
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block] | ' | |||||||||||
The estimated fair value of the stock options granted was determined using the Black-Scholes option pricing model with the following weighted-average assumptions: | ||||||||||||
December 31, | December 31, | |||||||||||
2013 | 2012 | |||||||||||
Dividend yield | 0 | % | 0 | % | ||||||||
Expected volatility | 82.7 | % | 80.5 | % | ||||||||
Risk-free interest rate | 1.3 | % | 1.2 | % | ||||||||
Expected average life of the options | 3.7 years | 3.3 years | ||||||||||
Estimated forfeiture rate | 13.4 | % | 13.9 | % | ||||||||
Basic_and_diluted_income_loss_1
Basic and diluted income (loss) per share (Tables) | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Earnings Per Share [Abstract] | ' | |||||||
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | ' | |||||||
Reconciliations between basic and diluted income (loss) per shares are set forth below: | ||||||||
December 31, | December 31, | |||||||
2013 | 2012 | |||||||
Net income (loss) | $ | 4,773 | $ | -18,315 | ||||
Weighted average number of common | 12,769,844 | 12,254,546 | ||||||
shares for basic income per share | ||||||||
Dilutive effect of options | 165,012 | - | ||||||
Diluted weighted average number of common | 12,934,856 | 12,254,546 | ||||||
shares for diluted income per share | ||||||||
Basic income (loss) per share | $ | 0.37 | $ | -1.49 | ||||
Diluted income (loss) per share(1) | $ | 0.37 | $ | -1.49 | ||||
Commitments_Tables
Commitments (Tables) | 12 Months Ended | ||||
Dec. 31, 2013 | |||||
Commitments and Contingencies Disclosure [Abstract] | ' | ||||
Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block] | ' | ||||
Future minimum annual lease payments under the leases are as follows: | |||||
2014 | $ | 489 | |||
2015 | 200 | ||||
2016 | 184 | ||||
2017 | 21 | ||||
2018 | 21 | ||||
Thereafter | 31 | ||||
Total minimum payments required | $ | 946 | |||
Income_taxes_Tables
Income taxes (Tables) | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Income Tax Disclosure [Abstract] | ' | |||||||
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | ' | |||||||
The reconciliation of income tax computed at statutory tax rates to income tax expense (recovery), using a 25.8% (2012 – 25.0%) statutory tax rate, is: | ||||||||
December 31, | December 31, | |||||||
2013 | 2012 | |||||||
Tax recovery at Canadian statutory income tax rates | $ | 1,229 | $ | -4,579 | ||||
Change in valuation allowance | 405 | 4,001 | ||||||
Permanent and other differences | -185 | 562 | ||||||
Tax rate differences | -1,347 | 16 | ||||||
Income tax expense | $ | 102 | $ | - | ||||
Schedule of Income before Income Tax, Domestic and Foreign [Table Text Block] | ' | |||||||
The components of earnings (loss) before income taxes consist of the following: | ||||||||
2013 | 2012 | |||||||
Canadian | $ | 12,245 | $ | -18,315 | ||||
Foreign | -7,370 | - | ||||||
Income (loss) before income taxes | $ | 4,875 | $ | -18,315 | ||||
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | ' | |||||||
Significant components of the Company’s deferred tax assets and liabilities are shown below: | ||||||||
December 31, | December 31, | |||||||
2013 | 2012 | |||||||
Deferred tax assets: | ||||||||
Tax loss carryforwards | $ | 70,054 | $ | 60,784 | ||||
Research and development deductions and credits | 14,748 | 14,198 | ||||||
Tax values of depreciable assets in excess of accounting values | 2,485 | 2,871 | ||||||
Share issue costs and other | 517 | 38 | ||||||
Total deferred tax assets | 87,804 | 77,891 | ||||||
Valuation allowance | -87,804 | -77,891 | ||||||
Total deferred tax assets | - | - | ||||||
Deferred tax liabilities | - | - | ||||||
Net tax asset | $ | - | $ | - | ||||
Investment Tax Credits and Non-Capital Losses [Table Text Block] | ' | |||||||
The investment tax credits and non-capital losses for income tax purposes expire as follows: | ||||||||
Investment | Non-capital | |||||||
tax credits | losses | |||||||
2015 | $ | 352 | $ | 12,652 | ||||
2016 | 1,064 | 8,475 | ||||||
2017 | 975 | 3,861 | ||||||
2018 | 158 | 39,375 | ||||||
2019 | 501 | 7,392 | ||||||
Thereafter | 15,404 | 220,999 | ||||||
$ | 18,454 | $ | 292,754 | |||||
Restructuring_Tables
Restructuring (Tables) | 12 Months Ended | |||||||||
Dec. 31, 2013 | ||||||||||
Restructuring and Related Activities [Abstract] | ' | |||||||||
Schedule of Restructuring and Related Costs [Table Text Block] | ' | |||||||||
The following table summarizes the provisions related to the restructuring for the years ended December 31, 2013 and 2012: | ||||||||||
Employee | Idle-use | |||||||||
termination | expense and | Asset | ||||||||
benefits | other charges | impairments | Total | |||||||
Restructuring expense recognized | 5,553 | 3,770 | 717 | 10,040 | ||||||
Payments made | -5,509 | -3,462 | - | -8,971 | ||||||
Non-cash items | 276 | -61 | -717 | -502 | ||||||
Balance at December 31, 2012 | 320 | 247 | - | 567 | ||||||
Restructuring expense recognized | 1,336 | - | - | 1,336 | ||||||
Revisions to prior accruals | -12 | -117 | - | -129 | ||||||
Payments made | -926 | -30 | - | -956 | ||||||
Non-cash items | - | -86 | - | -86 | ||||||
Balance at December 31, 2013 | 718 | 14 | - | 732 | ||||||
Segmented_information_Tables
Segmented information (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Segment Reporting [Abstract] | ' | ||||||||||||
Schedule of Segment Reporting Information, by Segment [Table Text Block] | ' | ||||||||||||
During the third quarter of 2013, the Company began recognizing revenue from product sales at which time management began to measure the Company’s operations by the geographic area in which such products are sold. | |||||||||||||
Year ended December 31, 2013 | Europe | Rest of World | Total | ||||||||||
Revenue | $ | 1,897 | $ | 2,614 | $ | 4,511 | |||||||
Cost of goods sold | 622 | 314 | 936 | ||||||||||
Gross margin | 1,275 | 2,300 | 3,575 | ||||||||||
Gross margin % | 67 | % | 88 | % | 79 | % | |||||||
Interest income (expense) | -125 | 38 | -87 | ||||||||||
Amortization expense on property and equipment | 5 | 99 | 104 | ||||||||||
Year ended December 31, 2012 | Europe | Rest of World | Total | ||||||||||
Revenue | $ | - | $ | 789 | $ | 789 | |||||||
Cost of goods sold | - | - | - | ||||||||||
Gross margin | - | 789 | 789 | ||||||||||
Gross margin % | - | 100 | % | 100 | % | ||||||||
Interest expense | - | -4,268 | -4,268 | ||||||||||
Amortization expense on property and equipment | - | 895 | 895 | ||||||||||
Property and equipment by geographic area were as follows: | |||||||||||||
As at December 31 | 2013 | 2012 | |||||||||||
Europe | $ | 132 | $ | - | |||||||||
Rest of World | 486 | 271 | |||||||||||
$ | 618 | $ | 271 | ||||||||||
Significant_accounting_policie3
Significant accounting policies (Details) | 12 Months Ended |
Dec. 31, 2013 | |
Laboratory Equipment [Member] | ' |
Property, Plant and Equipment [Line Items] | ' |
Property, Plant and Equipment, Useful Life | '5 years |
Production equipment [Member] | ' |
Property, Plant and Equipment [Line Items] | ' |
Property, Plant and Equipment, Useful Life | '7 years |
Computer Equipment [Member] | Maximum [Member] | ' |
Property, Plant and Equipment [Line Items] | ' |
Property, Plant and Equipment, Useful Life | '5 years |
Computer Equipment [Member] | Minimum [Member] | ' |
Property, Plant and Equipment [Line Items] | ' |
Property, Plant and Equipment, Useful Life | '3 years |
Software [Member] | Maximum [Member] | ' |
Property, Plant and Equipment [Line Items] | ' |
Property, Plant and Equipment, Useful Life | '5 years |
Software [Member] | Minimum [Member] | ' |
Property, Plant and Equipment [Line Items] | ' |
Property, Plant and Equipment, Useful Life | '3 years |
Furniture and office equipment [Member] | Maximum [Member] | ' |
Property, Plant and Equipment [Line Items] | ' |
Property, Plant and Equipment, Useful Life | '7 years |
Furniture and office equipment [Member] | Minimum [Member] | ' |
Property, Plant and Equipment [Line Items] | ' |
Property, Plant and Equipment, Useful Life | '5 years |
Significant_accounting_policie4
Significant accounting policies (Details 1) | 12 Months Ended |
Dec. 31, 2013 | |
Patents [Member] | ' |
Finite-Lived Intangible Assets [Line Items] | ' |
Finite-Lived Intangible Assets, Amortization Method | 'over the useful life |
Trade Names [Member] | ' |
Finite-Lived Intangible Assets [Line Items] | ' |
Finite-Lived Intangible Asset, Useful Life | '10 years |
Marketing rights [Member] | ' |
Finite-Lived Intangible Assets [Line Items] | ' |
Finite-Lived Intangible Asset, Useful Life | '10 years |
Significant_accounting_policie5
Significant accounting policies (Details Textual) | 12 Months Ended |
Dec. 31, 2013 | |
Investment Maturity Period | '90 days or less |
Acquisition_Details
Acquisition (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | |
Equity instruments (2,481,596 common shares of the Company) | $9,629 | [1] | ' |
Deferred consideration | 10,685 | [2] | ' |
Cash consideration | 1,266 | 0 | |
Fair value of total consideration transferred | $21,580 | ' | |
[1] | The fair value of 19.9% of the Companybs outstanding shares issued on Closing Date (a total of 2,481,596 shares) with a value of $3.88 per share for a total of $9,629 determined based on the closing price on the last trading day immediately preceding the Transaction. | ||
[2] | The fair value of the deferred consideration of $12,000 incurred by the Company on Closing Date adjusted by estimated post-closing adjustments of $1,315. Post-closing adjustments are not complete. This fair value measure is based on significant inputs that are not observable in the market (Level 3 inputs) including: (a) discount factor, (b) estimate of post-closing adjustments and (c) forecasted cash receipts from product sales. |
Acquisition_Details_1
Acquisition (Details 1) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Assets acquired | ' | ' |
Restricted cash and deposits | $1,274 | ' |
Accounts receivable | 6,142 | ' |
Inventories | 3,781 | ' |
Prepaid expense and other assets | 960 | ' |
Property and equipment | 413 | ' |
Identifiable intangible assets | 16,961 | ' |
Goodwill (note 4) | 318 | 0 |
Liabilities assumed | ' | ' |
Accounts payable and accrued liabilities | 8,162 | ' |
Deferred rent | 107 | ' |
Fair value of net assets acquired | $21,580 | ' |
Acquisition_Details_2
Acquisition (Details 2) (USD $) | 12 Months Ended |
In Thousands, unless otherwise specified | Dec. 31, 2013 |
Acquired Finite-Lived Intangible Assets [Line Items] | ' |
Finite-lived Intangible Assets Acquired | $16,961 |
Trade Names [Member] | ' |
Acquired Finite-Lived Intangible Assets [Line Items] | ' |
Finite-lived Intangible Assets Acquired | 1,131 |
Finite-Lived Intangible Asset, Useful Life | '10 years |
Marketing rights [Member] | ' |
Acquired Finite-Lived Intangible Assets [Line Items] | ' |
Finite-lived Intangible Assets Acquired | $15,830 |
Finite-Lived Intangible Asset, Useful Life | '10 years |
Acquisition_Details_3
Acquisition (Details 3) (USD $) | 12 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Pro forma information | ' | ' |
Revenue | $30,775 | $40,120 |
Income (loss) from operations | 13,814 | -22,583 |
Net income (loss) | $756 | ($15,066) |
Basic and diluted income (loss) per share | $0.06 | ($1.23) |
Acquisition_Details_Textual
Acquisition (Details Textual) (USD $) | 1 Months Ended | 12 Months Ended | |
In Thousands, except Share data, unless otherwise specified | Nov. 18, 2013 | Dec. 31, 2013 | |
Business Acquisition [Line Items] | ' | ' | |
Business Acquisition, Equity Interest Issued or Issuable, Number of Shares | 2,481,596 | 2,481,596 | |
Estimated Post Closing Adjustments | $1,315 | ' | |
Business Acquisition Equity Interest Issued Or Issuable Price Per Share | ' | $3.88 | |
Business Combination, Consideration Transferred, Equity Interests Issued and Issuable | ' | 9,629 | [1] |
Correvio LLC [Member] | ' | ' | |
Business Acquisition [Line Items] | ' | ' | |
Business Acquisition, Percentage of Voting Interests Acquired | 100.00% | ' | |
Business Combination Equity Interests Issued Percentage | 19.90% | ' | |
Business Acquisition Pro Forma Percentage Of Voting Interests Acquired | 16.60% | ' | |
Business Combinations Deferred Consideration Liability | 12,000 | ' | |
Business Combination, Pro Forma Information, Revenue of Acquiree since Acquisition Date, Actual | ' | 3,805 | |
Business Combination, Pro Forma Information, Earnings or Loss of Acquiree since Acquisition Date, Actual | ' | $275 | |
Business Acquisition Percentage of Product Sales | 10.00% | ' | |
Business Acquisition Percentage Of Interest Accrued | 10.00% | ' | |
[1] | The fair value of 19.9% of the Companybs outstanding shares issued on Closing Date (a total of 2,481,596 shares) with a value of $3.88 per share for a total of $9,629 determined based on the closing price on the last trading day immediately preceding the Transaction. |
Financial_instruments_Details_
Financial instruments (Details Textual) (USD $) | Dec. 31, 2012 |
In Thousands, unless otherwise specified | |
Allowance for Doubtful Accounts Receivable | $0 |
Restricted_cash_Details_Textua
Restricted cash (Details Textual) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Weighted Average Rate Foreign Deposit, Time Deposit | 0.01% | 0.00% |
Restricted Cash Held In Escrow [Member] | ' | ' |
Restricted Cash and Cash Equivalents, Current | 1,000 | ' |
Bank Guarantees For Sales Contracts With Various Hospitals And Health Authorities [Member] | ' | ' |
Restricted Cash and Cash Equivalents, Current | 1,158 | 0 |
Value Added Tax Liabilities [Member] | ' | ' |
Restricted Cash and Cash Equivalents, Current | 165 | 0 |
Inventories_Details
Inventories (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Finished goods | $1,941 | $0 |
Work in process | 3,052 | 0 |
Raw materials | 1,546 | 0 |
Inventory consigned to others | 58 | ' |
Total | $6,597 | $0 |
Property_and_equipment_Details
Property and equipment (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Property, Plant and Equipment [Line Items] | ' | ' |
Cost | $1,233 | $782 |
Accumulated Amortization | 615 | 511 |
Net book value | 618 | 271 |
Laboratory Equipment [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Cost | 629 | 640 |
Accumulated Amortization | 488 | 439 |
Net book value | 141 | 201 |
Production Equipment [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Cost | 286 | ' |
Accumulated Amortization | 0 | ' |
Net book value | 286 | ' |
Software [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Cost | 96 | ' |
Accumulated Amortization | 13 | ' |
Net book value | 83 | ' |
Computer Equipment [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Cost | 144 | 84 |
Accumulated Amortization | 87 | 65 |
Net book value | 57 | 19 |
Leasehold Improvements [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Cost | 39 | 30 |
Accumulated Amortization | 17 | 4 |
Net book value | 22 | 26 |
Furniture and office equipment [Memeber] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Cost | 39 | 28 |
Accumulated Amortization | 10 | 3 |
Net book value | $29 | $25 |
Property_and_equipment_Details1
Property and equipment (Details Textual) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Amortization expense | $104 | $895 |
Impairment of Long-Lived Assets to be Disposed of | $0 | $717 |
Intangible_assets_Details
Intangible assets (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Cost | $21,140 | ' |
Accumulated amortization | 3,071 | ' |
Net book value | 18,069 | 1,506 |
Marketing rights [Member] | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Marketing rights, Cost | 15,830 | ' |
Accumulated amortization | 199 | ' |
Net book value | 15,631 | ' |
Trade Names [Member] | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Trade name, Cost | 1,131 | ' |
Accumulated amortization | 14 | ' |
Net book value | 1,117 | ' |
Patents [Member] | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Patents, Cost | 4,179 | 4,032 |
Accumulated amortization | 2,858 | 2,526 |
Net book value | $1,321 | $1,506 |
Intangible_assets_Details_1
Intangible assets (Details 1) (USD $) | Dec. 31, 2013 |
In Thousands, unless otherwise specified | |
2014 | $2,002 |
2015 | 1,962 |
2016 | 1,875 |
2017 | 1,857 |
2018 | 1,825 |
Total | $9,521 |
Intangible_assets_Details_Text
Intangible assets (Details Textual) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Amortization of Intangible Assets | $545 | $334 |
Accounts_payable_and_accrued_l2
Accounts payable and accrued liabilities (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Trade accounts payable | $5,719 | $1,045 |
Accrued contract research | 0 | 447 |
Employee-related accruals | 3,367 | 808 |
Restructuring (note 18) | 732 | 567 |
Interest payable (notes 4 and 11) | 125 | 1,334 |
Other accrued liabilities | 4,060 | 233 |
Total | $14,003 | $4,434 |
Long_term_debt_Details_Textual
Long term debt (Details Textual) (USD $) | 12 Months Ended | 1 Months Ended | 12 Months Ended | 12 Months Ended | |||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Mar. 01, 2013 | Mar. 01, 2013 | Dec. 31, 2012 | Dec. 10, 2012 | Dec. 31, 2012 | Dec. 31, 2010 | Dec. 31, 2013 |
Final Settlements [Member] | Settlements Of Debt [Member] | Settlements Of Debt [Member] | Settlements Of Debt [Member] | Merck and Co Inc [Member] | Merck and Co Inc [Member] | Merck and Co Inc [Member] | |||
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Line of Credit Facility, Maximum Borrowing Capacity | ' | ' | ' | ' | ' | ' | ' | ' | $100,000 |
Line of Credit Facility, Annual Borrowing Capacity | ' | ' | ' | ' | ' | ' | ' | ' | 25,000 |
Long-term debt | ' | ' | ' | ' | ' | 50,000 | ' | ' | ' |
Interest on Debt Instrument Forgiven | ' | ' | ' | ' | 718 | 2,164 | ' | ' | ' |
Repayment of long-term debt (note 11) | 13,000 | 7,000 | ' | 13,000 | 7,000 | ' | ' | ' | ' |
Gain on settlement of debt (note 10) | 20,834 | 11,218 | 20,834 | ' | 11,218 | ' | ' | ' | ' |
Debt Instrument, Interest Rate Terms | 'LIBOR, which resets annually, plus 8% | ' | ' | ' | ' | ' | ' | ' | ' |
Debt Instrument Settlement Amount | ' | ' | ' | ' | ' | 20,000 | ' | ' | ' |
Extinguishment of Debt, Amount | ' | ' | ' | ' | 17,500 | ' | ' | ' | ' |
Proceeds from Lines of Credit | ' | ' | ' | ' | ' | ' | $25,000 | $25,000 | ' |
Stockholders_equity_Details
Stockholders' equity (Details) | 1 Months Ended | 12 Months Ended | |
Nov. 18, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | |
Balance (in shares) | ' | 12,470,335 | 12,225,818 |
Issuance of common stock (note 18) | ' | ' | 244,517 |
Issued on acquisition of Correvio (note 4) | 2,481,596 | 2,481,596 | ' |
Issued for cash upon exercise of options | ' | 5,192 | ' |
Issued upon exercise of options in cashless transaction (note 12(c)) | ' | 1,154 | ' |
Balance (in shares) | ' | 14,958,277 | 12,470,335 |
Stockholders_equity_Details_1
Stockholders' equity (Details 1) (CAD) | 12 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Options granted, Number | 545,000 | 590,000 | ' |
Options exercised, Number | -6,710 | 0 | ' |
Options forfeited, Number | -245,226 | -260,431 | ' |
Options expired, Number | -209,264 | -188,450 | ' |
Oustanding ending balance, Number | 1,201,912 | 1,118,112 | 976,993 |
Options granted, Weighted average exercise price | 3.28 | 2.1 | ' |
Options exercised, Weighted Average Exercise Price | 1.7 | 0 | ' |
Options forfeited, Weighted average exercise price | 22.53 | 30.9 | ' |
Options expired, Weighted average exercise price | 33.4 | 59.75 | ' |
Outstanding ending balance, Weighted Average Exercise Price | 4.68 | 14.64 | 35.25 |
Options Outstanding, Weighted average remaining contractual life | '3 years 8 months 16 days | '2 years 11 months 8 days | '1 year 11 months 26 days |
Outstanding beginning balance, Aggregate intrinsic value | 67 | 0 | ' |
Outstanding ending balance, Aggregate intrinsic value | 4,400 | 67 | 0 |
Exercisable, Number | 602,438 | ' | ' |
Exercisable, Weighted average exercise price | 6.18 | ' | ' |
Exercisable, Weighted average remaining contractual life | '3 years 1 month 20 days | ' | ' |
Exercisable, Aggregate intrinsic value | 2,218 | ' | ' |
Vested and expected to vest, Number | 1,171,343 | ' | ' |
Vested and expected to vest, Weighted average exercise price | 4.7 | ' | ' |
Vested and expected to vest, Weighted average remaining contractual life | '3 years 8 months 8 days | ' | ' |
Vested and expected to vest, Aggregate intrinsic value | 4,317 | ' | ' |
Stockholders_equity_Details_2
Stockholders' equity (Details 2) (CAD) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' | ' | ' |
Options outstanding, Number | 1,201,912 | 1,118,112 | 976,993 |
Option Outstanding, Weighted average remaining contractual life | '3 years 8 months 16 days | ' | ' |
Option Outstanding, Weighted average exercise price | 4.68 | 14.64 | 35.25 |
Exercisable, shares | 602,438 | ' | ' |
Exercisable, Weighted average exercise price | 6.18 | ' | ' |
$1.65 to $1.67 [Member] | ' | ' | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' | ' | ' |
Range of exercise prices, minimum | 1.65 | ' | ' |
Range of exercise prices, maximum | 1.67 | ' | ' |
Options outstanding, Number | 272,000 | ' | ' |
Option Outstanding, Weighted average remaining contractual life | '4 years 2 months 19 days | ' | ' |
Option Outstanding, Weighted average exercise price | 1.65 | ' | ' |
Exercisable, shares | 60,250 | ' | ' |
Exercisable, Weighted average exercise price | 1.65 | ' | ' |
$1.68 to $2.08 [Member] | ' | ' | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' | ' | ' |
Range of exercise prices, minimum | 1.68 | ' | ' |
Range of exercise prices, maximum | 2.08 | ' | ' |
Options outstanding, Number | 268,000 | ' | ' |
Option Outstanding, Weighted average remaining contractual life | '3 years 3 months | ' | ' |
Option Outstanding, Weighted average exercise price | 1.7 | ' | ' |
Exercisable, shares | 189,956 | ' | ' |
Exercisable, Weighted average exercise price | 1.7 | ' | ' |
$2.09 to $3.78 [Member] | ' | ' | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' | ' | ' |
Range of exercise prices, minimum | 2.09 | ' | ' |
Range of exercise prices, maximum | 3.78 | ' | ' |
Options outstanding, Number | 300,000 | ' | ' |
Option Outstanding, Weighted average remaining contractual life | '3 years 6 months | ' | ' |
Option Outstanding, Weighted average exercise price | 2.45 | ' | ' |
Exercisable, shares | 211,972 | ' | ' |
Exercisable, Weighted average exercise price | 2.45 | ' | ' |
$3.79 to $43.20 [Member] | ' | ' | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' | ' | ' |
Range of exercise prices, minimum | 3.79 | ' | ' |
Range of exercise prices, maximum | 43.2 | ' | ' |
Options outstanding, Number | 361,912 | ' | ' |
Option Outstanding, Weighted average remaining contractual life | '3 years 9 months 29 days | ' | ' |
Option Outstanding, Weighted average exercise price | 11.01 | ' | ' |
Exercisable, shares | 140,260 | ' | ' |
Exercisable, Weighted average exercise price | 19.84 | ' | ' |
Stockholders_equity_Details_3
Stockholders' equity (Details 3) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Non-vested, Number Of Options Outstanding | 341,686 | ' |
Non-vested, Number Of Options Granted | 545,000 | 590,000 |
Non-vested, Number Of Options Vested | -256,973 | ' |
Non-vested, Number Of Options Forfeited | -30,239 | ' |
Non-vested, Number Of Options Outstanding | 599,474 | 341,686 |
Non-vested, Weighted Average Grant Date Fair Value | $1.81 | ' |
Granted, Weighted Average Grant Date Fair Value | $2.17 | $0.22 |
Vested, Weighted Average Grant Date Fair Value | $1.87 | ' |
Forfeited, Weighted Average Grant Date Fair Value | $2.11 | ' |
Non-vested, Weighted Average Grant Date Fair Value | $2.10 | $1.81 |
Stockholders_equity_Details_4
Stockholders' equity (Details 4) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' |
Allocated Share-based Compensation Expense | $645 | $546 |
Research and Development Expense [Member] | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' |
Allocated Share-based Compensation Expense | 0 | -128 |
Selling, General and Administrative Expenses [Member] | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' |
Allocated Share-based Compensation Expense | $645 | $674 |
Stockholders_equity_Details_5
Stockholders' equity (Details 5) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Dividend yield | 0.00% | 0.00% |
Expected volatility | 82.70% | 80.50% |
Risk-free interest rate | 1.30% | 1.20% |
Expected average life of the options | '3 years 8 months 12 days | '3 years 3 months 18 days |
Estimated forfeiture rate | 13.40% | 13.90% |
Stockholders_equity_Details_Te
Stockholders' equity (Details Textual) (USD $) | 12 Months Ended | |
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Nonvested options, unrecognized share-based compensation costs | $1,349 | $281 |
Nonvested options, weighted average period for recognition of unrecognized share-based compensation costs | '1 year 7 months 6 days | '1 year 6 months |
Intrinsic value of options exercised | 32 | 0 |
Proceeds from exercise of options | 8 | 0 |
Weight average fair value of options granted | $2.17 | $0.22 |
Reversal of compensation costs, unvested options | ' | 276 |
Fair value of options vested | $444 | $1,924 |
Stock Option Plan 2001 Amended Plan [Member] | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 1,400,000 | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Percentage of Outstanding Stock Maximum | 10.00% | ' |
Basic_and_diluted_income_loss_2
Basic and diluted income (loss) per share (Details) (USD $) | 12 Months Ended | |||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | ||
Net income (loss) | $4,773 | ($18,315) | ||
Weighted average number of common shares for basic income per share | 12,769,844 | [1] | 12,254,546 | [1] |
Dilutive effect of options | 165,012 | 0 | ||
Diluted weighted average number of common shares for diluted income per share | 12,934,856 | [1] | 12,254,546 | [1] |
Basic income (loss) per share | $0.37 | [1] | ($1.49) | [1] |
Diluted income (loss) per share(1) | $0.37 | [1] | ($1.49) | [1] |
[1] | Basic and diluted income (loss) per common share is based on the weighted average number of common shares outstanding during the year, which has been adjusted retroactively to reflect the effects of the one-for-five share consolidation (note 12(e)). |
Basic_and_diluted_income_loss_3
Basic and diluted income (loss) per share (Details Textual) | 12 Months Ended |
Dec. 31, 2013 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 330,000 |
Commitments_Details
Commitments (Details) (USD $) | Dec. 31, 2013 |
In Thousands, unless otherwise specified | |
2014 | $489 |
2015 | 200 |
2016 | 184 |
2017 | 21 |
2018 | 21 |
Thereafter | 31 |
Total minimum payments required | $946 |
Commitments_Details_Textual
Commitments (Details Textual) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Summary of Commitments [Line Items] | ' | ' |
Operating Leases, Income Statement, Sublease Income | $651 | $618 |
Operating Leases, Net Rent Expense | 129 | 1,504 |
Research and Development and Other commitment | 3,997 | 800 |
Purchase Obligation, Due in Next Twelve Months | 1,373 | ' |
Purchase Obligation, Due in Second Year | 1,716 | ' |
Purchase Obligation Expended | $1,832 | $1,729 |
Royalty_agreement_Details_Text
Royalty agreement (Details Textual) | 12 Months Ended |
Dec. 31, 2013 | |
Summary of Royalty Agreement [Line Items] | ' |
Royalty On Profit Percentage | 55.00% |
Aspen Global Incorporated [Member] | ' |
Summary of Royalty Agreement [Line Items] | ' |
Right Distribution Agreement Term | '50 years |
Income_taxes_Details
Income taxes (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Summary of Income Tax [Line Items] | ' | ' |
Tax recovery at Canadian statutory income tax rates | $1,229 | ($4,579) |
Change in valuation allowance | 405 | 4,001 |
Permanent and other differences | -185 | 562 |
Tax rate differences | -1,347 | 16 |
Income tax expense | $102 | $0 |
Income_taxes_Details_1
Income taxes (Details 1) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Income (loss) before income taxes | $4,875 | ($18,315) |
Canadian [Member] | ' | ' |
Income (loss) before income taxes | 12,245 | -18,315 |
Foreign [Member] | ' | ' |
Income (loss) before income taxes | ($7,370) | $0 |
Income_taxes_Details_2
Income taxes (Details 2) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Deferred tax assets: | ' | ' |
Tax loss carryforwards | $70,054 | $60,784 |
Research and development deductions and credits | 14,748 | 14,198 |
Tax values of depreciable assets in excess of accounting values | 2,485 | 2,871 |
Share issue costs and other | 517 | 38 |
Total deferred tax assets | 87,804 | 77,891 |
Valuation allowance | -87,804 | -77,891 |
Total deferred tax assets | 0 | 0 |
Deferred tax liabilities | 0 | 0 |
Net tax asset | $0 | $0 |
Income_taxes_Details_3
Income taxes (Details 3) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Tax Credit Carryforward [Line Items] | ' | ' |
Tax Credit Carryforward, Amount | $18,454 | $18,399 |
Operating Loss Carryforwards | 292,754 | 253,493 |
Non Capital Losses [Member] | ' | ' |
Tax Credit Carryforward [Line Items] | ' | ' |
Operating Loss Carryforwards | 292,754 | ' |
Investment Tax Credit Carryforward [Member] | ' | ' |
Tax Credit Carryforward [Line Items] | ' | ' |
Tax Credit Carryforward, Amount | 18,454 | ' |
Expire On 2015 [Member] | ' | ' |
Tax Credit Carryforward [Line Items] | ' | ' |
Tax Credit Carryforward, Amount | 352 | ' |
Operating Loss Carryforwards | 12,652 | ' |
Expire On 2016 [Member] | ' | ' |
Tax Credit Carryforward [Line Items] | ' | ' |
Tax Credit Carryforward, Amount | 1,064 | ' |
Operating Loss Carryforwards | 8,475 | ' |
Expire On 2017 [Member] | ' | ' |
Tax Credit Carryforward [Line Items] | ' | ' |
Tax Credit Carryforward, Amount | 975 | ' |
Operating Loss Carryforwards | 3,861 | ' |
Expire On 2018 [Member] | ' | ' |
Tax Credit Carryforward [Line Items] | ' | ' |
Tax Credit Carryforward, Amount | 158 | ' |
Operating Loss Carryforwards | 39,375 | ' |
Expire On 2019 [Member] | ' | ' |
Tax Credit Carryforward [Line Items] | ' | ' |
Tax Credit Carryforward, Amount | 501 | ' |
Operating Loss Carryforwards | 7,392 | ' |
Expire Thereafter [Member] | ' | ' |
Tax Credit Carryforward [Line Items] | ' | ' |
Tax Credit Carryforward, Amount | 15,404 | ' |
Operating Loss Carryforwards | $220,999 | ' |
Income_taxes_Details_Textual
Income taxes (Details Textual) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Summary of Income Tax [Line Items] | ' | ' |
Tax Credit Carryforward, Amount | $18,454 | $18,399 |
Operating Loss Carryforwards | 292,754 | 253,493 |
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate | 25.80% | 25.00% |
Liability for unrecognized tax benefits | 0 | 0 |
Estimated tax liabilities | 0 | 0 |
Canada Loss Carryforwards [Member] | ' | ' |
Summary of Income Tax [Line Items] | ' | ' |
Operating Loss Carryforwards | 159,656 | ' |
United States Loss Carryforwards [Member] | ' | ' |
Summary of Income Tax [Line Items] | ' | ' |
Operating Loss Carryforwards | 45,316 | ' |
Switzerland Loss Carryforwards [Member] | ' | ' |
Summary of Income Tax [Line Items] | ' | ' |
Operating Loss Carryforwards | 85,842 | ' |
United Kingdom Loss Carryforwards [Member] | ' | ' |
Summary of Income Tax [Line Items] | ' | ' |
Operating Loss Carryforwards | 1,061 | ' |
Germany Loss Carryforwards [Member] | ' | ' |
Summary of Income Tax [Line Items] | ' | ' |
Operating Loss Carryforwards | $879 | ' |
Restructuring_Details
Restructuring (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Restructuring Cost and Reserve [Line Items] | ' | ' |
Balance | $567 | ' |
Restructuring expense recognized | 1,336 | 10,040 |
Revisions to prior accruals | -129 | 0 |
Payments made | -956 | -8,971 |
Non-cash items | -86 | -502 |
Balance | 732 | 567 |
Employee Termination Benefits [Member] | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' |
Balance | 320 | ' |
Restructuring expense recognized | 1,336 | 5,553 |
Revisions to prior accruals | -12 | 0 |
Payments made | -926 | -5,509 |
Non-cash items | 0 | 276 |
Balance | 718 | 320 |
Idle-use Expense and Other Charges [Member] | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' |
Balance | 247 | ' |
Restructuring expense recognized | 0 | 3,770 |
Revisions to prior accruals | -117 | 0 |
Payments made | -30 | -3,462 |
Non-cash items | -86 | -61 |
Balance | 14 | 247 |
Asset Impairments [Member] | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' |
Balance | 0 | ' |
Restructuring expense recognized | 0 | 717 |
Revisions to prior accruals | 0 | 0 |
Payments made | 0 | 0 |
Non-cash items | 0 | -717 |
Balance | $0 | $0 |
Related_party_transactions_Det
Related party transactions (Details Textual) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Related Party Transaction [Line Items] | ' | ' |
Accounts payable to related party | $0 | $41 |
Expenses from related party transactions | 0 | 794 |
Officer [Member] | ' | ' |
Related Party Transaction [Line Items] | ' | ' |
Accounts payable to related party | 66 | 16 |
Expenses from related party transactions | 174 | 14 |
Accounting Firm [Member] | ' | ' |
Related Party Transaction [Line Items] | ' | ' |
Accounts payable to related party | 25 | 12 |
Expenses from related party transactions | $91 | $23 |
Segmented_information_Details
Segmented information (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Revenue | $4,511 | $789 |
Cost of goods sold | 936 | 0 |
Gross margin | 3,575 | 789 |
Gross margin % | 79.00% | 100.00% |
Interest income (expense) | -87 | -4,268 |
Amortization expense on property and equipment | 104 | 895 |
Europe [Member] | ' | ' |
Revenue | 1,897 | 0 |
Cost of goods sold | 622 | 0 |
Gross margin | 1,275 | 0 |
Gross margin % | 67.00% | 0.00% |
Interest income (expense) | -125 | 0 |
Amortization expense on property and equipment | 5 | 0 |
Rest Of World [Member] | ' | ' |
Revenue | 2,614 | 789 |
Cost of goods sold | 314 | 0 |
Gross margin | 2,300 | 789 |
Gross margin % | 88.00% | 100.00% |
Interest income (expense) | 38 | -4,268 |
Amortization expense on property and equipment | $99 | $895 |
Segmented_information_Details_
Segmented information (Details 1) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Property and equipment (note 8) | $618 | $271 |
Europe [Member] | ' | ' |
Property and equipment (note 8) | 132 | 0 |
Rest Of World [Member] | ' | ' |
Property and equipment (note 8) | $486 | $271 |
Segmented_information_Details_1
Segmented information (Details Textual) (Collaborative Partners [Member], Sales [Member]) | 12 Months Ended |
Dec. 31, 2012 | |
Collaborative Partners [Member] | Sales [Member] | ' |
Percentage Of Revenue | 100.00% |
Subsequent_events_Details_text
Subsequent events (Details textual) (Subsequent Event [Member], CAD) | 0 Months Ended |
In Millions, except Share data, unless otherwise specified | Mar. 11, 2014 |
Proceeds from Share Offering | 30 |
Share Price | 10 |
Deal Prospectus Offering [Member] | ' |
Stock Issued During Period, Shares, Treasury Stock Reissued | 1,500,000 |
Proceeds from Sale of Treasury Stock | 15 |
secondary offering from CarCor Investment Holdings LLC [Member] | ' |
Stock Issued During Period, Shares, New Issues | 1,500,000 |
Proceeds from Issuance of Common Stock | 15 |