Document and Entity Information
Document and Entity Information | 3 Months Ended |
Mar. 31, 2021 | |
Cover [Abstract] | |
Entity Registrant Name | Aeterna Zentaris Inc. |
Entity Central Index Key | 0001113423 |
Document Type | 6-K |
Document Period End Date | Mar. 31, 2021 |
Amendment Flag | false |
Current Fiscal Year End Date | --12-31 |
Document Fiscal Period Focus | Q1 |
Document Fiscal Year Focus | 2021 |
Condensed Interim Consolidated
Condensed Interim Consolidated Statements of Financial Position (Unaudited) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Current assets | ||
Cash and cash equivalents | $ 73,371 | $ 24,271 |
Trade and other receivables (note 5) | 1,075 | 1,681 |
Inventory | 60 | 21 |
Prepaid expenses and other current assets (note 6) | 3,050 | 1,913 |
Total current assets | 77,556 | 27,886 |
Restricted cash equivalents | 325 | 338 |
Right of use assets | 122 | 157 |
Property, plant and equipment | 37 | 22 |
Identifiable intangible assets | 541 | 59 |
Goodwill | 8,433 | 8,815 |
Total Assets | 87,014 | 37,277 |
Current liabilities | ||
Payables and accrued liabilities (note 7) | 2,252 | 2,199 |
Current portion of provisions (note 8) | 86 | 92 |
Income taxes | 378 | 395 |
Current portion of deferred revenues | 2,101 | 2,193 |
Current portion of lease liabilities | 129 | 135 |
Total current liabilities | 4,946 | 5,014 |
Deferred revenues | 3,800 | 3,289 |
Lease liabilities | 15 | 49 |
Employee future benefits (note 9) | 13,807 | 15,435 |
Provisions (note 8) | 272 | 279 |
Total liabilities | 22,840 | 24,066 |
SHAREHOLDERS' EQUITY | ||
Share capital (note 10) | 293,781 | 235,008 |
Warrants (note 10) | 4,595 | 12,402 |
Other capital (note 10) | 89,518 | 89,505 |
Deficit | (323,222) | (322,659) |
Accumulated other comprehensive loss ("AOCI") | (498) | (1,045) |
Total shareholders' equity | 64,174 | 13,211 |
Total liabilities and shareholders' equity | $ 87,014 | $ 37,277 |
Condensed Interim Consolidate_2
Condensed Interim Consolidated Statements of Changes in Shareholders' Equity (Deficiency) (Unaudited) - USD ($) $ in Thousands | Share Capital [Member] | Warrants [Member] | Other Capital [Member] | Deficit [Member] | Accumulated Other Comprehensive Income [Member] | Total |
Balance at Dec. 31, 2019 | $ 224,528 | $ 89,806 | $ (316,891) | $ 94 | $ (2,463) | |
Balance, shares at Dec. 31, 2019 | 19,994,510 | |||||
Statement Line Items [Line Items] | ||||||
Net Income (loss) | 779 | 779 | ||||
Other comprehensive loss: Foreign currency translation adjustments | 210 | 210 | ||||
Other comprehensive loss: Actuarial loss on defined benefit plans (note 9) | 1,388 | 1,388 | ||||
Comprehensive loss | 2,167 | 210 | 2,377 | |||
Issuance of common shares and warrants, net of transaction costs (note 10) | $ 1,885 | 1,885 | ||||
Issuance of common shares and warrants, net of transaction costs (note 10), shares | 3,478,261 | |||||
Share-based compensation costs | (112) | (112) | ||||
Balance at Mar. 31, 2020 | $ 226,413 | 89,694 | (314,724) | 304 | 1,687 | |
Balance, shares at Mar. 31, 2020 | 23,472,771 | |||||
Balance at Dec. 31, 2020 | $ 235,008 | 12,402 | 89,505 | (322,659) | (1,045) | 13,211 |
Balance, shares at Dec. 31, 2020 | 62,678,613 | |||||
Statement Line Items [Line Items] | ||||||
Net Income (loss) | (1,445) | (1,445) | ||||
Other comprehensive loss: Foreign currency translation adjustments | 547 | 547 | ||||
Other comprehensive loss: Actuarial loss on defined benefit plans (note 9) | 882 | 882 | ||||
Comprehensive loss | (563) | 547 | (16) | |||
Issuance of common shares and warrants, net of transaction costs (note 10) | $ 29,082 | 1,897 | 30,979 | |||
Issuance of common shares and warrants, net of transaction costs (note 10), shares | 23,586,207 | |||||
Exercise of warrants (note 10) | $ 29,691 | (9,704) | 19,987 | |||
Exercise of warrants (note 10), shares | 34,888,965 | |||||
Share-based compensation costs | 13 | 13 | ||||
Balance at Mar. 31, 2021 | $ 293,781 | $ 4,595 | $ 89,518 | $ (323,222) | $ (498) | $ 64,174 |
Balance, shares at Mar. 31, 2021 | 121,153,785 |
Condensed Interim Consolidate_3
Condensed Interim Consolidated Statements of Comprehensive (Loss) Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Revenues | ||
Royalty income | $ 8 | $ 14 |
Product sales | 1,016 | |
Supply chain | 41 | 41 |
Licensing revenue | 537 | 19 |
Total revenues | 586 | 1,090 |
Operating expenses | ||
Cost of sales | 29 | 862 |
Research and development costs | 363 | 319 |
General and administrative expenses | 1,264 | 1,124 |
Selling expenses | 246 | 248 |
Gain on modification of building lease | (185) | |
Total operating expenses (note 11) | 1,902 | 2,368 |
Loss from operations | (1,316) | (1,278) |
Loss due to changes in foreign currency exchange rates | (248) | (104) |
Change in fair value of warrant liability | 2,470 | |
Other finance costs | (10) | (309) |
Net finance (costs) income | (258) | 2,057 |
(Loss) income before income taxes | (1,574) | 779 |
Income tax recovery | 129 | |
Net (loss) income | (1,445) | 779 |
Items that may be reclassified subsequently to profit or loss: | ||
Foreign currency translation adjustments | 547 | 210 |
Items that will not be reclassified to profit or loss: | ||
Actuarial gain on defined benefit plans (note 9) | 882 | 1,388 |
Comprehensive (loss) income | $ (16) | $ 2,377 |
Net (loss) income per share [basic and diluted] | $ (0.02) | $ 0.04 |
Weighted average number of shares outstanding (note 14): | ||
Basic | 95,444,990 | 21,523,416 |
Diluted | 95,444,990 | 21,860,416 |
Condensed Interim Consolidate_4
Condensed Interim Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Cash flows from operating activities | ||
Net (loss) income for the period | $ (1,445) | $ 779 |
Items not affecting cash and cash equivalents: | ||
Change in fair value of warrant liability | (2,470) | |
Transaction costs of warrants issued and expensed as finance cost | 310 | |
Utilization of provisions (note 8) | 19 | (327) |
Depreciation and amortization | 36 | 107 |
Gain on modification of building lease | (185) | |
Share-based compensation costs | 13 | (112) |
Employee future benefits (note 9) | 49 | 49 |
Amortization of deferred revenues | (537) | (14) |
Foreign exchange gain on items denominated in foreign currencies | 266 | 52 |
Other non-cash items | 29 | (15) |
Interest accretion on lease liabilities | 2 | (11) |
Payment of income taxes | (1,124) | (811) |
Changes in operating assets and liabilities (note 12) | 1,647 | 204 |
Net cash used in operating activities | (1,045) | (2,444) |
Cash flows from financing activities | ||
Issuance of common shares (note 10) | 34,200 | |
Issuance of common shares and warrants (note 10) | 4,500 | |
Transaction costs (note 10) | (3,221) | (600) |
Proceeds from exercise of warrants (note 10) | 19,987 | |
Payments on lease liabilities | (33) | (158) |
Net cash provided by financing activities | 50,933 | 3,742 |
Cash flows from investing activities | ||
Purchase of intangible assets | (490) | |
Purchase of property and equipment | (17) | |
Net cash used by investing activities | (507) | |
Effect of exchange rate changes on cash and cash equivalents | (281) | 46 |
Net change in cash and cash equivalents | 49,100 | 1,344 |
Cash and cash equivalents - Beginning of period | 24,271 | 7,838 |
Cash and cash equivalents - End of period | $ 73,371 | $ 9,182 |
Business Overview
Business Overview | 3 Months Ended |
Mar. 31, 2021 | |
Disclosure of initial application of standards or interpretations [abstract] | |
Business Overview | 1. Business overview Summary of business Aeterna Zentaris (the “Company” or “Aeterna”) is a specialty biopharmaceutical company commercializing and developing therapeutics and diagnostic tests. The Company’s lead product, Macrilen™ (macimorelin), is the first and only U.S. Food and Drug Administration (“FDA”) and European Commission approved oral test indicated for the diagnosis of patients with adult growth hormone deficiency (“AGHD”). Macimorelin is currently marketed in the U.S. under the tradename Macrilen™ through a license agreement with Novo Nordisk Biopharm Limited (“Novo Nordisk”) where Aeterna Zentaris receives royalties on net sales. Macimorelin will be marketed in Europe and the United Kingdom through a license agreement with Consilient Health Ltd. (“Consilient Health”) and Aeterna Zentaris will receive royalties on net sales and other potential payments. The Company is conducting the Phase 3 study (“DETECT” trial) for macimorelin in the U.S. and Europe for the diagnosis of childhood-onset growth hormone deficiency (“CGHD”) in partnership with Novo Nordisk. Novo Nordisk is paying 100% of costs up to €9,000 (approximately $10,980) and includes reimbursement of Aeterna’s budgeted internal labor costs and any additional external jointly approved DETECT trial costs incurred over €9,000 (approximately $10,980) will be shared equally between Novo Nordisk and Aeterna. The Company is actively pursuing business development opportunities for the commercialization of macimorelin in Asia and the rest of the world, in addition to other non-strategic assets to monetize their value. In addition, the Company is pursuing innovative development candidates in different indications with a focus on rare or orphan indications and potential for pediatric use. COVID-19 impact In 2020, the COVID-19 pandemic began causing significant financial market declines and social dislocation and, to date, the Company has not experienced significant business disruption from COVID-19. The situation is dynamic with various cities and countries around the world are responding in different ways to address the outbreak. The spread of COVID-19 may impact the Company’s operations, including the potential interruption of our clinical trial activities and the Company’s supply chain, or that of the Company’s licensee. For example, the COVID-19 outbreak may delay enrollment in the Company’s clinical trials due to prioritization of hospital resources toward the outbreak, and some patients may be unwilling to be enrolled in the Company’s trials or be unable to comply with clinical trial protocols if quarantines impede patient movement or interrupt healthcare services, which would delay the Company’s ability to conduct clinical trials or release clinical trial results and could delay the Company’s ability to obtain regulatory approval and commercialize the Company’s product candidates. The pandemic may also impact the ability of the Company’s suppliers to deliver components or raw materials on a timely basis or at all. In addition, hospitals may reduce staffing and reduce or postpone certain treatments in response to the spread of an infectious disease. The Company’s licensee may be impacted due to significant delays of diagnostic activities in the U.S. Management will continue to monitor and assess the impact of the pandemic on its judgments, estimates, accounting policies and amounts recognized in these consolidated financial statements. As at March 31, 2021, the Company assessed the possible impacts of COVID-19 on its financial results. The Company has evaluated its financial assets, property, plant and equipment, intangible assets, and goodwill for impairment and no changes from the carrying amount were required in the reporting period. Basis of presentation These unaudited condensed interim consolidated financial statements have been prepared in accordance with International Financial Reporting Standards as issued by the International Accounting Standards Board (“IFRS”) applicable to the preparation of interim financial statements, including IAS 34, Interim Financial Reporting. These unaudited condensed interim consolidated financial statements should be read in conjunction with the Company’s annual consolidated financial statements as at and for the year ended December 31, 2020. The accounting policies in these condensed interim consolidated financial statements are consistent with those presented in the Company’s annual consolidated financial statements. These unaudited condensed interim consolidated financial statements were approved by the Board of Directors (the “Board”) on May 4, 2021. |
Critical Accounting Estimates a
Critical Accounting Estimates and Judgements | 3 Months Ended |
Mar. 31, 2021 | |
Trade And Other Current Payables, Excluding Deferred Income Classified As Current | |
Critical Accounting Estimates and Judgements | 2. Critical accounting estimates and judgements The preparation of condensed interim consolidated financial statements in accordance with IFRS requires management to make judgments, estimates and assumptions that affect the reported amounts of the Company’s assets, liabilities, revenues, expenses and related disclosures. Judgments, estimates and assumptions are based on historical experience, expectations, current trends and other factors that management believes to be relevant at the time at which the Company’s condensed interim consolidated financial statements are prepared. Management reviews, on a regular basis, the Company’s accounting policies, assumptions, estimates and judgments in order to ensure that the condensed interim consolidated financial statements are presented fairly and in accordance with IFRS applicable to interim financial statements. Revisions to accounting estimates are recognized in the period in which the estimates are revised and in any future periods affected. Critical accounting estimates and assumptions, as well as critical judgments used in applying accounting policies in the preparation of the Company’s condensed interim consolidated financial statements, were the same as those applied to the Company’s annual consolidated financial statements as of December 31, 2020 and 2019 and for the years then ended except for the following: Intangible assets Separately acquired intangible assets are recognized at the price paid in cash, less amortization and impairments. All intangible assets are tested for impairment when there are indications that the carrying value may not be recoverable, or, at a minimum, annually. The recoverable amount is determined as the higher of value in use or fair value less costs to sell using a discounted cash flow calculation, where the products’ expected cash flows are risk-adjusted over their estimated remaining useful economic life. Any impairment losses are recognized immediately in the consolidated statements of comprehensive (loss) income. Intangible assets relating to products which fail during development (or for which development ceases for other reasons) are also tested for impairment and are written down to their recoverable amount (which is usually nil). If, subsequent to an impairment loss being recognized, development restarts or other facts and circumstances change indicating that the impairment is less or no longer exists, the value of the asset is re-estimated and its carrying value is increased to the recoverable amount, but not exceeding the original value, by recognizing an impairment reversal in the consolidated statements of comprehensive (loss) income. Amortization of such intangible assets begins once such assets are ready for their intended use. Contingent payments The Company accounts for contingent variable payments for separately acquired intangible assets with the cost accumulation approach. Contingent consideration is not considered on initial recognition of the asset but is added to the cost of the asset initially recorded, when incurred. Measurement uncertainty: The significant spread of COVID-19 within the U.S., Canada, Germany and elsewhere has resulted in a widespread health crisis and has had adverse effects on local, national and global economies generally, the markets the Company serves, its operations and the market price of its common shares. Uncertain factors, including the duration of the outbreak, the severity of the disease and the actions to contain or treat its impact, could cause interruptions in the Company’s operations and supply chain, which could impact the Company’s ability to accurately measure the net realizable value of inventory and fair value of trade and other receivables. |
Recent Accounting Pronouncement
Recent Accounting Pronouncements Issued But Not Yet Effective | 3 Months Ended |
Mar. 31, 2021 | |
Disclosure of initial application of standards or interpretations [abstract] | |
Recent Accounting Pronouncements Issued But Not Yet Effective | 3. Recent accounting pronouncements issued but not yet effective The recent accounting pronouncements issued but not yet effective included in note 4 to the Company’s annual audited consolidated financial statements as at December 31, 2020 and 2019 and for the years then ended are unchanged. |
License and Distribution Arrang
License and Distribution Arrangements | 3 Months Ended |
Mar. 31, 2021 | |
Subclassifications of assets, liabilities and equities [abstract] | |
License and Distribution Arrangements | 4. License and distribution arrangements (a) License Agreement for U.S. and Canada Royalty income earned under the agreement with Novo Nordisk agreement for the three-month period ended March 31, 2021 was $8 (2020 - $14) and during the three-month period ended March 31, 2021, the Company invoiced Novo Nordisk $2,113 for the DETECT trial costs (2020 - $193), which is recorded as a reduction in research and development expenses, and $41 for supply chain activities (2020 - $41), which is recorded as revenue, both in the condensed interim consolidated statements of comprehensive (loss) income. (b) License agreement for European Union and the United Kingdom On December 7, 2020, the Company entered into an exclusive licensing and supply agreements with Consilient Health, Ltd. (“CH” or “Consilient Health”) for the commercialization in the European Union and the United Kingdom of macimorelin in any diagnostic application. As per the agreement terms, the Company received a cash payment of €1 million ($1,207) in January 2021. This cash payment has been recognized in the consolidated statements of financial position as long-term deferred revenue. |
Trade and Other Receivables
Trade and Other Receivables | 3 Months Ended |
Mar. 31, 2021 | |
Trade and other receivables [abstract] | |
Trade and Other Receivables | 5. Trade and other receivables March 31, 2021 December 31, 2020 $ $ Trade accounts receivable (net of expected credit losses of $55 (December 31, 2020 - $55)) 554 1,190 Value added tax and income tax receivable 511 468 Other 10 23 1,075 1,681 |
Prepaid Expenses and Other Curr
Prepaid Expenses and Other Current Assets | 3 Months Ended |
Mar. 31, 2021 | |
Prepaid Expenses And Other Current Assets | |
Prepaid Expenses and Other Current Assets | 6. Prepaid expenses and other current assets March 31, 2021 December 31, 2020 $ $ Prepaid insurance 825 1,021 Prepaid income taxes 2,128 873 Other 97 19 3,050 1,913 |
Payables and Accrued Liabilitie
Payables and Accrued Liabilities | 3 Months Ended |
Mar. 31, 2021 | |
Subclassifications of assets, liabilities and equities [abstract] | |
Payables and Accrued Liabilities | 7. Payables and accrued liabilities March 31, 2021 December 31, 2020 $ $ Trade accounts payable 1,046 1,187 Salaries, employment taxes and benefits 478 474 Accrued audit fees 104 144 Accrued research and development costs 255 23 Other accrued liabilities 369 371 2,252 2,199 |
Provisions
Provisions | 3 Months Ended |
Mar. 31, 2021 | |
Subclassifications of assets, liabilities and equities [abstract] | |
Provisions | 8. Provisions The changes in the Company’s provisions for onerous contracts can be summarized as follows: Cetrotide (R) $ Balance – January 1, 2021 371 Utilization of provisions (16 ) Change in provisions 19 Impact of foreign exchange rate changes (16 ) Balance – March 31, 2021 358 Less current portion 86 Non-current portion 272 |
Employee Future Benefits
Employee Future Benefits | 3 Months Ended |
Mar. 31, 2021 | |
Employee Future Benefits | |
Employee Future Benefits | 9. Employee future benefits The Company sponsors a pension plan in Germany (The Aeterna Zentaris GmbH Pension Plan). The change in the Company’s accrued benefit obligations is summarized as follows: March 31, 2021 Year ended Pension Other Total Total $ $ $ $ Balances – Beginning of the period 15,341 94 15,435 13,788 Current service cost 15 1 16 54 Interest cost 23 — 23 163 Actuarial (gain) loss arising from changes in financial assumptions (882 ) — (882 ) 651 Benefits paid (115 ) (2 ) (117 ) (532 ) Impact of foreign exchange rate changes (664 ) (4 ) (668 ) 1,311 Balances – End of the period 13,718 89 13,807 15,435 Amounts recognized: In net loss (77 ) (1 ) (78 ) (218 ) In other comprehensive loss (1,546 ) (4 ) (1,550 ) (1,961 ) The calculation of the pension benefit obligation is sensitive to the discount rate assumption. Discount rates were 0.6% at December 31, 2020 and 1% at March 31, 2021. |
Share Capital, Warrants and Oth
Share Capital, Warrants and Other Capital | 3 Months Ended |
Mar. 31, 2021 | |
Share Capital Warrants And Other Capital | |
Share Capital, Warrants and Other Capital | 10. Share capital, warrants and other capital The Company has an unlimited number of authorized common shares (being voting and participating shares) with no par value, as well as an unlimited number of preferred, first and second ranking shares, issuable in series, with rights and privileges specific to each class, with no par value. 2021 On February 19, 2021, the Company closed a public offering of 20,509,746 common shares at a price to the public of $1.45 per common share, for gross proceeds of $29,739, before deducting underwriting discounts, commissions and offering expenses payable by the Company, in the amount of $2,837. Aeterna also granted the underwriter, which was also the Placement agent, a 30-day over-allotment option (the “Underwriter Option”) to purchase up to 3,076,461 additional common shares at the public offering price, less underwriting discounts and commissions, and 1,435,682 Placement agent warrants with an exercise price of $1.8125 and expiring on February 17, 2026. The net cash proceeds to the Company from the offering totaled $26,902. On February 22, 2021, the underwriter exercised the Underwriter Option in full and received 3,076,461 common shares for gross proceeds to the Company of $4,461. In connection with the public offering and the exercise of the Underwriter Option, the Company paid commissions and other expenses of $384 and issued 215,352 Placement agent warrants priced at $1.8125 and expiring on February 17, 2026. The net proceeds from the Underwriter Option was $4,077. Collectively, this financing is referred to as the “February 2021 Financing”. The gross proceeds of $34,200 was recorded to share capital with cash transaction costs of $3,221 and the fair value of the Placement agent warrants of $1,897 included as share issuance costs and as warrants in shareholders’ equity. The table presented below shows the inputs and assumptions applied to the Black-Scholes option pricing model in order to determine the fair value of these Placement agent warrants: Number of Market Weighted Risk-free Expected Expected Expected ($) ($) (i) (ii) (iii) (iv) February 2021 Placement agent warrants – public offering 1,435,682 1.48 1.8125 0.58734 % 119.18 % 4.99 0.00 % February 2021 Placement agent warrants – Underwriter Option 215,352 1.48 1.8125 0.58544 % 119.57 % 4.98 0.00 % (i) Based on United States Treasury Government Bond interest rates with a term that is consistent with the expected life of the warrants. (ii) Based on the historical volatility of the Company’s stock price over the most recent period consistent with the expected life of the warrants. (iii) Based upon time to expiry from the reporting period date. (iv) The Company has not paid dividends and it does not intend to pay dividends in the foreseeable future. During the three-month period ended March 31, 2021, holders exercised warrants as follows: Number Exercised Exercise Price Cash Receipts September 2019 Investor warrants 2,000,000 $ 1.65 $ 3,300,000 February 2020 Investor warrants 1,739,130 $ 1.20 $ 2,086,956 July 2020 Investor warrants 20,823,333 $ 0.45 $ 9,370,500 July 2020 Placement Agent warrants 1,866,667 $ 0.5625 $ 1,050,000 August 2020 Investor warrants 7,589,883 $ 0.47 $ 3,567,245 August 2020 Placement Agent warrants 869,952 $ 0.7040625 $ 612,501 34,888,965 $ 19,987,202 2020 On February 21, 2020, the Company closed a registered direct offering for 3,478,261 common shares, at a purchase price of $1.29 per share, priced at-the-market. Additionally, 2,608,696 investor warrants were issued at an exercise price of $1.20 per common share and 243,478 broker warrants were issued at an exercise price of $1.62 per common share. The net cash proceeds to the Company from the offering totaled $3,900. The gross proceeds of $4,500 was allocated as $2,325 to warrant liability based on the ascribed fair value and the remaining gross proceeds of $2,175 were allocated to share capital. The transaction costs of $600 were allocated between share capital and warrants based on their relative fair values. The fair value of the share capital was recorded within equity net of the allocated transaction costs and the transaction costs of $310 allocated to the warrant liability were recorded as expense in the consolidated statements of comprehensive loss. Warrants Number Weighted (US$) $ Balance – January 1, 2020 — — — Warrant liability reclassified to equity 16,368,033 0.8556 7,377 Warrants issued as equity (July 2020) 28,533,333 0.4574 5,025 Balance – December 31, 2020 44,901,366 0.6025 12,402 Warrants granted 1,651,034 1.8125 1,897 Warrants exercised (34,888,965 ) 0.5728 (9,704 ) Balance – March 31, 2021 11,663,435 0.8624 4,595 Other capital There are no changes in US dollar denominated (US$) Stock options and DSUs since December 31, 2020. Year ended US$ Stock Options Weighted average (US$) DSUs CAN$ Stock options Weighted exercise price Balance – Beginning of period 741,116 3.61 212,000 441 912.00 Granted 180,000 0.37 120,000 — — Exercised — — (159,000 ) — — Canceled/Forfeited (330,350 ) 2.56 — — — Expired (84,366 ) 2.14 — (441 ) 912.00 Balance – End of period 506,400 1.44 173,000 — — |
Operating Expenses
Operating Expenses | 3 Months Ended |
Mar. 31, 2021 | |
Analysis of income and expense [abstract] | |
Operating Expenses | 11. Operating expenses The nature of the Company’s operating expenses from operations include the following: Three months ended March 31, 2021 2020 $ $ Key management personnel: Salaries and short-term employee benefits 219 163 Consultant fees 48 46 Share-based compensation costs 10 11 Post-employment benefits including defined contribution plan benefits of $4 in 2021 and $7 in 2020 12 8 289 228 Other employees: Salaries and short-term employee benefits 310 316 Post-employment benefits including defined contribution plan benefits of $7 in 2021 and $2 in 2020 38 51 Share-based compensation costs 3 (123 ) 351 244 Cost of inventory used and services provided 29 862 Professional fees 580 498 Consulting fees 130 141 Insurance 227 221 Third-party research and development 52 97 Travel 22 33 Marketing services 97 36 Laboratory supplies 15 — Other goods and services 19 30 Leasing costs 34 46 Gain on modification of building lease — (185 ) Depreciation and amortization 36 107 Operating foreign exchange losses 21 10 1,902 2,368 |
Supplemental Disclosure of Cash
Supplemental Disclosure of Cash Flow Information | 3 Months Ended |
Mar. 31, 2021 | |
Statement of cash flows [abstract] | |
Supplemental Disclosure of Cash Flow Information | 12. Supplemental disclosure of cash flow information Three months ended March 31, 2021 2020 $ $ Changes in operating assets and liabilities: Trade and other receivables 650 (7 ) Inventory (40 ) 836 Prepaid expenses and other current assets (93 ) 378 Payables and accrued liabilities 115 (492 ) Taxes payable (129 ) — Deferred revenues 1,227 (406 ) Employee future benefits (83 ) (105 ) 1,647 204 |
Segment Information
Segment Information | 3 Months Ended |
Mar. 31, 2021 | |
Segment Information | |
Segment Information | 13. Segment information The Company operates in a single operating segment, being the biopharmaceutical segment. |
Net (Loss) Income Per Share
Net (Loss) Income Per Share | 3 Months Ended |
Mar. 31, 2021 | |
Earnings per share [abstract] | |
Net (Loss) Income Per Share | 14. Net (loss) income per share The following table sets forth pertinent data relating to the computation of basic and diluted net (loss) income per share attributable to common shareholders. Three months ended March 31, 2021 2020 $ $ Net (loss) income (1,445 ) 779 Basic weighted average number of shares outstanding 95,444,990 21,523,416 Net (loss) income per share (basic) (0.02 ) 0.04 Dilutive effect of stock options and DSUs — 337,000 Dilutive effect of warrants — — Diluted weighted average number of shares outstanding 95,444,990 21,860,416 Net loss per share (diluted) (0.02 ) 0.04 Items excluded from the calculation of diluted net loss per share because the exercise price was greater than the average market price of the common shares or due to their anti-dilutive effect Stock options and DSUs 679,400 208,357 Warrants 11,663,435 9,453,174 Net (loss) income per share is calculated by dividing net (loss) income by the weighted average number of shares outstanding during the relevant period. Diluted weighted average number of shares reflects the dilutive effect of equity instruments, such as any “in the money” stock options and warrants. In periods with reported net losses, all stock options and warrants are deemed anti-dilutive such that basic net loss per share and diluted net loss per share are equal, and thus “in the money” stock options and warrants have not been included in the computation of net loss per share because to do so would be anti-dilutive. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2021 | |
Commitments And Contingencies | |
Commitments and Contingencies | 15. Commitments and Contingencies Service and R&D contracts TOTAL $ $ $ Less than 1 year 440 1,073 1,513 1 - 3 years 11 1,297 1,308 4 - 5 years — 36 36 More than 5 years — — — Total 451 2,406 2,857 During the first quarter of 2021, the Company executed various agreements including in-licensing and similar arrangements with development partners with $490 in additions of separately acquired intangible assets recognized in the condensed interim consolidated statements of financial position. Such agreements may require the Company to make payments on achievement of stages of development, launch or revenue milestones, although the Company generally has the right to terminate these agreements at no penalty. The Company recognizes research and development milestones as an intangible asset once it is committed to the payment, which is generally when the Company reaches a set point in the development cycle. Based on the closing exchange rates, the Company expects to pay $2,406, including $2,116 [EUR 1,801], and $290 [GBP 210], in R&D contracts and up to $4,726, including $3,141 [EUR 2,675] and $1,585 [GBP 1,150], in R&D milestone payments and up to $7,656, including $5,933 [EUR 5,050] and $1,723 [GBP 1,250], in revenue related milestone payments. The table below contains all potential R&D and revenue-related milestone payments that the Company may be required to make under such agreements: Future potential Future potential payments TOTAL $ $ $ Less than 1 year 29 — 29 1 - 3 years — — — 4 - 5 years 431 — 431 More than 5 years 4,266 7,656 11,922 Total 4,726 7,656 12,382 The table excludes any payments already capitalized in the condensed interim consolidated statements of financial position. The future payments that are disclosed represent contract payments and are not discounted and are not risk-adjusted. The development of any pharmaceutical product candidates is a complex and risky process that may fail at any stage in the development process due to a number of factors. The timing of the payments is based on the Company’s current best estimate of achievement of the relevant milestone. Contingencies In the normal course of operations, the Company may become involved in various claims and legal proceedings related to, for example, contract terminations and employee-related and other matters. On March 9, 2020, the Company settled the previously disclosed class-action lawsuit against it pending in the U.S. District Court for the District of New Jersey. This settlement remains subject to execution of final settlement documents and approval by the U.S. District Court for the District of New Jersey. |
Trade and Other Receivables (Ta
Trade and Other Receivables (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Trade and other receivables [abstract] | |
Schedule of Trade and Other Receivables | March 31, 2021 December 31, 2020 $ $ Trade accounts receivable (net of expected credit losses of $55 (December 31, 2020 - $55)) 554 1,190 Value added tax and income tax receivable 511 468 Other 10 23 1,075 1,681 |
Prepaid Expenses and Other Cu_2
Prepaid Expenses and Other Current Assets (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Prepaid Expenses And Other Current Assets | |
Summary of Prepaid Expenses and Other Current Assets | March 31, 2021 December 31, 2020 $ $ Prepaid insurance 825 1,021 Prepaid income taxes 2,128 873 Other 97 19 3,050 1,913 |
Payables and Accrued Liabilit_2
Payables and Accrued Liabilities (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Subclassifications of assets, liabilities and equities [abstract] | |
Schedule of Payables and Accrued Liabilities | March 31, 2021 December 31, 2020 $ $ Trade accounts payable 1,046 1,187 Salaries, employment taxes and benefits 478 474 Accrued audit fees 104 144 Accrued research and development costs 255 23 Other accrued liabilities 369 371 2,252 2,199 |
Provisions (Tables)
Provisions (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Subclassifications of assets, liabilities and equities [abstract] | |
Schedule of Changes in Provisions for Onerous Contracts | The changes in the Company’s provisions for onerous contracts can be summarized as follows: Cetrotide (R) $ Balance – January 1, 2021 371 Utilization of provisions (16 ) Change in provisions 19 Impact of foreign exchange rate changes (16 ) Balance – March 31, 2021 358 Less current portion 86 Non-current portion 272 |
Employee Future Benefits (Table
Employee Future Benefits (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Employee Future Benefits | |
Disclosure of Net Defined Benefit Liability (Asset) | The Company sponsors a pension plan in Germany (The Aeterna Zentaris GmbH Pension Plan). The change in the Company’s accrued benefit obligations is summarized as follows: March 31, 2021 Year ended Pension Other Total Total $ $ $ $ Balances – Beginning of the period 15,341 94 15,435 13,788 Current service cost 15 1 16 54 Interest cost 23 — 23 163 Actuarial (gain) loss arising from changes in financial assumptions (882 ) — (882 ) 651 Benefits paid (115 ) (2 ) (117 ) (532 ) Impact of foreign exchange rate changes (664 ) (4 ) (668 ) 1,311 Balances – End of the period 13,718 89 13,807 15,435 Amounts recognized: In net loss (77 ) (1 ) (78 ) (218 ) In other comprehensive loss (1,546 ) (4 ) (1,550 ) (1,961 ) |
Share Capital, Warrants and O_2
Share Capital, Warrants and Other Capital (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Share Capital Warrants And Other Capital | |
Schedule of Fair Value of Warrants Assumptions | The table presented below shows the inputs and assumptions applied to the Black-Scholes option pricing model in order to determine the fair value of these Placement agent warrants: Number of Market Weighted Risk-free Expected Expected Expected ($) ($) (i) (ii) (iii) (iv) February 2021 Placement agent warrants – public offering 1,435,682 1.48 1.8125 0.58734 % 119.18 % 4.99 0.00 % February 2021 Placement agent warrants – Underwriter Option 215,352 1.48 1.8125 0.58544 % 119.57 % 4.98 0.00 % (i) Based on United States Treasury Government Bond interest rates with a term that is consistent with the expected life of the warrants. (ii) Based on the historical volatility of the Company’s stock price over the most recent period consistent with the expected life of the warrants. (iii) Based upon time to expiry from the reporting period date. (iv) The Company has not paid dividends and it does not intend to pay dividends in the foreseeable future. |
Summary of Warrants Exercise Transactions | During the three-month period ended March 31, 2021, holders exercised warrants as follows: Number Exercised Exercise Price Cash Receipts September 2019 Investor warrants 2,000,000 $ 1.65 $ 3,300,000 February 2020 Investor warrants 1,739,130 $ 1.20 $ 2,086,956 July 2020 Investor warrants 20,823,333 $ 0.45 $ 9,370,500 July 2020 Placement Agent warrants 1,866,667 $ 0.5625 $ 1,050,000 August 2020 Investor warrants 7,589,883 $ 0.47 $ 3,567,245 August 2020 Placement Agent warrants 869,952 $ 0.7040625 $ 612,501 34,888,965 $ 19,987,202 |
Schedule of Warrants Activity Reclassified into Equity | Number Weighted (US$) $ Balance – January 1, 2020 — — — Warrant liability reclassified to equity 16,368,033 0.8556 7,377 Warrants issued as equity (July 2020) 28,533,333 0.4574 5,025 Balance – December 31, 2020 44,901,366 0.6025 12,402 Warrants granted 1,651,034 1.8125 1,897 Warrants exercised (34,888,965 ) 0.5728 (9,704 ) Balance – March 31, 2021 11,663,435 0.8624 4,595 |
Disclosure of Change in Stock Options Issued | Year ended US$ Stock Options Weighted average (US$) DSUs CAN$ Stock options Weighted exercise price Balance – Beginning of period 741,116 3.61 212,000 441 912.00 Granted 180,000 0.37 120,000 — — Exercised — — (159,000 ) — — Canceled/Forfeited (330,350 ) 2.56 — — — Expired (84,366 ) 2.14 — (441 ) 912.00 Balance – End of period 506,400 1.44 173,000 — — |
Operating Expenses (Tables)
Operating Expenses (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Analysis of income and expense [abstract] | |
Schedule of Operating Expenses | The nature of the Company’s operating expenses from operations include the following: Three months ended March 31, 2021 2020 $ $ Key management personnel: Salaries and short-term employee benefits 219 163 Consultant fees 48 46 Share-based compensation costs 10 11 Post-employment benefits including defined contribution plan benefits of $4 in 2021 and $7 in 2020 12 8 289 228 Other employees: Salaries and short-term employee benefits 310 316 Post-employment benefits including defined contribution plan benefits of $7 in 2021 and $2 in 2020 38 51 Share-based compensation costs 3 (123 ) 351 244 Cost of inventory used and services provided 29 862 Professional fees 580 498 Consulting fees 130 141 Insurance 227 221 Third-party research and development 52 97 Travel 22 33 Marketing services 97 36 Laboratory supplies 15 — Other goods and services 19 30 Leasing costs 34 46 Gain on modification of building lease — (185 ) Depreciation and amortization 36 107 Operating foreign exchange losses 21 10 1,902 2,368 |
Supplemental Disclosure of Ca_2
Supplemental Disclosure of Cash Flow Information (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Statement of cash flows [abstract] | |
Disclosure of Changes in Operating Assets and Liabilities | Three months ended March 31, 2021 2020 $ $ Changes in operating assets and liabilities: Trade and other receivables 650 (7 ) Inventory (40 ) 836 Prepaid expenses and other current assets (93 ) 378 Payables and accrued liabilities 115 (492 ) Taxes payable (129 ) — Deferred revenues 1,227 (406 ) Employee future benefits (83 ) (105 ) 1,647 204 |
Net (Loss) Income Per Share (Ta
Net (Loss) Income Per Share (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Earnings per share [abstract] | |
Summary of Pertinent Data Relating to Computation of Basic and Diluted Net (Loss) Income Per Share | The following table sets forth pertinent data relating to the computation of basic and diluted net (loss) income per share attributable to common shareholders. Three months ended March 31, 2021 2020 $ $ Net (loss) income (1,445 ) 779 Basic weighted average number of shares outstanding 95,444,990 21,523,416 Net (loss) income per share (basic) (0.02 ) 0.04 Dilutive effect of stock options and DSUs — 337,000 Dilutive effect of warrants — — Diluted weighted average number of shares outstanding 95,444,990 21,860,416 Net loss per share (diluted) (0.02 ) 0.04 Items excluded from the calculation of diluted net loss per share because the exercise price was greater than the average market price of the common shares or due to their anti-dilutive effect Stock options and DSUs 679,400 208,357 Warrants 11,663,435 9,453,174 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Commitments And Contingencies | |
Schedule of Expected Future Minimum Lease Payments | Service and R&D contracts TOTAL $ $ $ Less than 1 year 440 1,073 1,513 1 - 3 years 11 1,297 1,308 4 - 5 years — 36 36 More than 5 years — — — Total 451 2,406 2,857 |
Schedule of R&D and Revenue Related Milestone Payments | Future potential Future potential payments TOTAL $ $ $ Less than 1 year 29 — 29 1 - 3 years — — — 4 - 5 years 431 — 431 More than 5 years 4,266 7,656 11,922 Total 4,726 7,656 12,382 |
Business Overview (Details Narr
Business Overview (Details Narrative) - Novo Nordisk A/S [Member] $ in Thousands | 3 Months Ended |
Mar. 31, 2021USD ($) | |
Statement Line Items [Line Items] | |
Percentage of clinical trial costs reimbursement | 100.00% |
Clinical trial costs | $ 10,980 |
Additional clinical trial costs | 10,980 |
Euro [Member] | |
Statement Line Items [Line Items] | |
Additional clinical trial costs | 9,000 |
Top of Range [Member] | Euro [Member] | |
Statement Line Items [Line Items] | |
Clinical trial costs | $ 9,000 |
License and Distribution Arra_2
License and Distribution Arrangements (Details Narrative) € in Thousands, $ in Thousands | 1 Months Ended | 3 Months Ended | ||
Jan. 31, 2021USD ($) | Jan. 31, 2021EUR (€) | Mar. 31, 2021USD ($) | Mar. 31, 2020USD ($) | |
Statement Line Items [Line Items] | ||||
Royalty income | $ 8 | $ 14 | ||
License Agreement [Member] | ||||
Statement Line Items [Line Items] | ||||
Royalty income | 8 | 14 | ||
License Agreement [Member] | Consilient Health, Ltd [Member] | ||||
Statement Line Items [Line Items] | ||||
Proceeds from license agreement | $ 1,207 | |||
License Agreement [Member] | Consilient Health, Ltd [Member] | Euro [Member] | ||||
Statement Line Items [Line Items] | ||||
Proceeds from license agreement | € | € 1,000 | |||
License Agreement [Member] | Novo Nordisk A/S [Member] | ||||
Statement Line Items [Line Items] | ||||
Licensee costs | 2,113 | 193 | ||
Supply chain costs | $ 41 | $ 41 |
Trade and Other Receivables - S
Trade and Other Receivables - Schedule of Trade and Other Receivables (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Trade and other receivables [abstract] | ||
Trade accounts receivable (net of expected credit losses of $55 (December 31, 2020 - $55)) | $ 554 | $ 1,190 |
Value added tax and income tax receivable | 511 | 468 |
Other | 10 | 23 |
Trade and other receivables | $ 1,075 | $ 1,681 |
Trade and Other Receivables -_2
Trade and Other Receivables - Schedule of Trade and Other Receivables (Details) (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Trade and other receivables [abstract] | ||
Trade accounts receivable, expected credit losses | $ 55 | $ 55 |
Prepaid Expenses and Other Cu_3
Prepaid Expenses and Other Current Assets - Summary of Prepaid Expenses and Other Current Assets (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Prepaid Expenses And Other Current Assets | ||
Prepaid insurance | $ 825 | $ 1,021 |
Prepaid income taxes | 2,128 | 873 |
Other | 97 | 19 |
Prepaid expenses and other current assets | $ 3,050 | $ 1,913 |
Payables and Accrued Liabilit_3
Payables and Accrued Liabilities - Schedule of Payables and Accrued Liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Subclassifications of assets, liabilities and equities [abstract] | ||
Trade accounts payable | $ 1,046 | $ 1,187 |
Salaries, employment taxes and benefits | 478 | 474 |
Accrued audit fees | 104 | 144 |
Accrued research and development costs | 255 | 23 |
Other accrued liabilities | 369 | 371 |
Payables and accrued liabilities | $ 2,252 | $ 2,199 |
Provisions - Schedule of Change
Provisions - Schedule of Changes in Provisions for Onerous Contracts (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Dec. 31, 2020 | |
Statement Line Items [Line Items] | ||
Less current portion | $ 86 | $ 92 |
Cetrotide(R) Onerous Contracts [Member] | ||
Statement Line Items [Line Items] | ||
Beginning balance | 371 | |
Utilization of provisions | (16) | |
Change in the provisions | 19 | |
Impact of foreign exchange rate changes | (16) | |
Ending balance | 358 | |
Less current portion | 86 | |
Non-current portion | $ 272 |
Employee Future Benefits (Detai
Employee Future Benefits (Details Narrative) | Mar. 31, 2021 | Dec. 31, 2020 |
Pension Benefit Plans [Member] | ||
Disclosure of defined benefit plans [line items] | ||
Discount rate | 1.00% | 0.60% |
Employee Future Benefits - Disc
Employee Future Benefits - Disclosure of Net Defined Benefit Liability (Asset) (Details) - Unfunded Plan One [Member] - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2021 | Dec. 31, 2020 | |
Disclosure of net defined benefit liability (asset) [line items] | ||
Balances - Beginning of the period | $ 15,435 | $ 13,788 |
Current service cost | 16 | 54 |
Interest cost | 23 | 163 |
Actuarial (gain) loss arising from changes in financial assumptions | (882) | 651 |
Benefits paid | (117) | (532) |
Impact of foreign exchange rate changes | (668) | 1,311 |
Balances - End of the period | 13,807 | 15,435 |
Amounts recognized: In net loss | (78) | (218) |
Amounts recognized: In other comprehensive loss | (1,550) | (1,961) |
Pension Benefit Plans [Member] | ||
Disclosure of net defined benefit liability (asset) [line items] | ||
Balances - Beginning of the period | 15,341 | |
Current service cost | 15 | |
Interest cost | 23 | |
Actuarial (gain) loss arising from changes in financial assumptions | (882) | |
Benefits paid | (115) | |
Impact of foreign exchange rate changes | (664) | |
Balances - End of the period | 13,718 | 15,341 |
Amounts recognized: In net loss | (77) | |
Amounts recognized: In other comprehensive loss | (1,546) | |
Other Benefit Plans [Member] | ||
Disclosure of net defined benefit liability (asset) [line items] | ||
Balances - Beginning of the period | 94 | |
Current service cost | 1 | |
Interest cost | ||
Actuarial (gain) loss arising from changes in financial assumptions | ||
Benefits paid | (2) | |
Impact of foreign exchange rate changes | (4) | |
Balances - End of the period | 89 | $ 94 |
Amounts recognized: In net loss | (1) | |
Amounts recognized: In other comprehensive loss | $ (4) |
Share Capital, Warrants and O_3
Share Capital, Warrants and Other Capital (Details Narrative) - USD ($) $ / shares in Units, $ in Thousands | Feb. 22, 2021 | Feb. 19, 2021 | Feb. 21, 2020 | Mar. 31, 2021 | Mar. 31, 2020 |
Statement Line Items [Line Items] | |||||
Transaction costs | $ 3,221 | $ 600 | |||
Registered Direct Offering [Member] | |||||
Statement Line Items [Line Items] | |||||
Number of common shares issued, shares | 3,478,261 | ||||
Share price | $ 1.29 | ||||
Proceeds from issuing common shares | $ 4,500 | ||||
Warrants [Member] | |||||
Statement Line Items [Line Items] | |||||
Number of common shares issued, shares | 243,478 | ||||
Proceeds from issuing common shares | $ 2,325 | ||||
Transaction costs | $ 600 | ||||
Exercise price | $ 1.62 | ||||
Warrants [Member] | Registered Direct Offering [Member] | |||||
Statement Line Items [Line Items] | |||||
Number of common shares issued, shares | 2,608,696 | ||||
Proceeds from issuing common shares | $ 3,900 | ||||
Warrant liability | $ 310 | ||||
Exercise price | $ 1.20 | ||||
Placement Agent Warrants [Member] | |||||
Statement Line Items [Line Items] | |||||
Number of common shares issued, shares | 215,352 | ||||
Proceeds from issuing common shares | $ 4,461 | ||||
Placement agent fees and other offering expenses | $ 384 | ||||
Option to purchase common stock | 3,076,461 | ||||
Warrants exercise price | $ 1.8125 | ||||
Warrants expiry date | Feb. 17, 2026 | ||||
Warrant liability | $ 1,897 | ||||
Share Capital [Member] | |||||
Statement Line Items [Line Items] | |||||
Proceeds from issuing common shares | $ 2,175 | ||||
Transaction costs | $ 600 | ||||
Public Offering [Member] | |||||
Statement Line Items [Line Items] | |||||
Number of common shares issued, shares | 20,509,746 | ||||
Share price | $ 1.45 | ||||
Proceeds from issuing common shares | $ 29,739 | ||||
Placement agent fees and other offering expenses | 2,837 | ||||
Underwriting discounts and commissions | 1,435,682 | ||||
Public Offering [Member] | Warrants [Member] | |||||
Statement Line Items [Line Items] | |||||
Proceeds from issuing common shares | $ 26,902 | ||||
Warrants exercise price | $ 1.8125 | ||||
Warrants expiry date | Feb. 17, 2026 | ||||
Public Offering [Member] | Top of Range [Member] | |||||
Statement Line Items [Line Items] | |||||
Option to purchase common stock | 3,076,461 | ||||
Underwriter Offering [Member] | |||||
Statement Line Items [Line Items] | |||||
Proceeds from issuing common shares | 4,077 | ||||
Underwriter Offering [Member] | Share Capital [Member] | |||||
Statement Line Items [Line Items] | |||||
Proceeds from issuing common shares | 34,200 | ||||
Transaction costs | $ 3,221 |
Share Capital, Warrants and O_4
Share Capital, Warrants and Other Capital - Schedule of Fair Value of Warrants Assumptions (Details) | 3 Months Ended | |
Mar. 31, 2021$ / sharesshares | ||
February 2021 Placement agent Warrants - Public Offering [Member] | ||
Statement Line Items [Line Items] | ||
Number of equivalent shares | shares | 1,435,682 | |
Market value per share price | $ 1.48 | |
Weighted average exercise price | $ 1.8125 | |
Risk-free annual interest rate | 0.5873% | [1] |
Expected volatility | 119.18% | [2] |
Expected life (years) | 4 years 11 months 26 days | [3] |
Expected dividend yield | 0.00% | [4] |
February 2021 Placement agent Warrants - Underwriter Option [Member] | ||
Statement Line Items [Line Items] | ||
Number of equivalent shares | shares | 215,352 | |
Market value per share price | $ 1.48 | |
Weighted average exercise price | $ 1.8125 | |
Risk-free annual interest rate | 0.5854% | [1] |
Expected volatility | 119.57% | [2] |
Expected life (years) | 4 years 11 months 23 days | [3] |
Expected dividend yield | 0.00% | [4] |
[1] | Based on United States Treasury Government Bond interest rates with a term that is consistent with the expected life of the warrants. | |
[2] | Based on the historical volatility of the Company's stock price over the most recent period consistent with the expected life of the warrants. | |
[3] | Based upon time to expiry from the reporting period date. | |
[4] | The Company has not paid dividends and it does not intend to pay dividends in the foreseeable future. |
Share Capital, Warrants and O_5
Share Capital, Warrants and Other Capital - Summary of Warrants Exercise Transactions (Details) $ / shares in Units, $ in Thousands | 3 Months Ended |
Mar. 31, 2021USD ($)Period$ / shares | |
Statement Line Items [Line Items] | |
Number Exercised | Period | 34,888,965 |
Cash Receipts | $ | $ 19,987,202 |
September 2019 Investor Warrants [Member] | |
Statement Line Items [Line Items] | |
Number Exercised | Period | 2,000,000 |
Exercise Price | $ / shares | $ 1.65 |
Cash Receipts | $ | $ 3,300,000 |
February 2020 Investor Warrants [Member] | |
Statement Line Items [Line Items] | |
Number Exercised | Period | 1,739,130 |
Exercise Price | $ / shares | $ 1.20 |
Cash Receipts | $ | $ 2,086,956 |
July 2020 Investor Warrants [Member] | |
Statement Line Items [Line Items] | |
Number Exercised | Period | 20,823,333 |
Exercise Price | $ / shares | $ 0.45 |
Cash Receipts | $ | $ 9,370,500 |
July 2020 Placement Agent Warrants [Member] | |
Statement Line Items [Line Items] | |
Number Exercised | Period | 1,866,667 |
Exercise Price | $ / shares | $ 0.5625 |
Cash Receipts | $ | $ 1,050,000 |
August 2020 Investor Warrants [Member] | |
Statement Line Items [Line Items] | |
Number Exercised | Period | 7,589,883 |
Exercise Price | $ / shares | $ 0.47 |
Cash Receipts | $ | $ 3,567,245 |
August 2020 Placement Agent Warrants [Member] | |
Statement Line Items [Line Items] | |
Number Exercised | Period | 869,952 |
Exercise Price | $ / shares | $ 0.7040625 |
Cash Receipts | $ | $ 612,501 |
Share Capital, Warrants and O_6
Share Capital, Warrants and Other Capital - Schedule of Warrants Activity Reclassified into Equity (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2021 | Dec. 31, 2019 | |
Share Capital Warrants And Other Capital | ||
Warrants Outstanding, Beginning of year | 44,901,366 | |
Warrant liability reclassified to equity | 16,368,033 | |
Warrants issued as equity (July 2020) | 28,533,333 | |
Warrants granted | 1,651,034 | |
Warrants exercised | (34,888,965) | |
Warrants Outstanding, End of year | 11,663,435 | 44,901,366 |
Weighted Average Exercise Price, Beginning of year | $ 0.6025 | |
Weighted Average Exercise Price, Warrant liability reclassified to equity | 0.8556 | |
Weighted Average Exercise Price, Warrants issued as equity (July 2020) | 0.4574 | |
Weighted Average Exercise Price, Warrants granted | 1.8125 | |
Weighted Average Exercise Price, Warrants exercised | 0.5728 | |
Weighted Average Exercise Price, End of year | $ 0.8624 | $ 0.6025 |
Warrants Outstanding, Beginning of year, value | $ 12,402 | |
Warrant liability reclassified to equity, value | 7,377 | |
Warrants issued as equity (July 2020), value | 5,025 | |
Warrants granted, value | 1,897 | |
Warrants exercised, value | (9,704) | |
Warrants Outstanding, End of year, value | $ 4,595 | $ 12,402 |
Share Capital, Warrants and O_7
Share Capital, Warrants and Other Capital - Disclosure of Change in Stock Options Issued (Details) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2021Period$ / shares | Dec. 31, 2020Period$ / shares | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Exercised, Number (in shares) | (34,888,965) | |
Employee Stock Option USD [Member] | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Balance - Beginning of year, Number (in shares) | 506,400 | 741,116 |
Granted, Number (in shares) | 180,000 | |
Exercised, Number (in shares) | ||
Canceled/Forfeited, Number (in shares) | (330,350) | |
Expired, Number (in shares) | (84,366) | |
Balance - End of year, Number (in shares) | 506,400 | |
Balance - Beginning of year, Weighted average exercise price (in US and CAN dollars per share) | $ / shares | $ 1.44 | $ 3.61 |
Granted, Weighted average exercise price (in US and CAN dollars per share) | $ / shares | 0.37 | |
Exercised, Weighted average exercise price (in US and CAN dollars per share) | $ / shares | ||
Canceled/Forfeited, Weighted average exercise price (in US and CAN dollars per share) | $ / shares | 2.56 | |
Expired, Weighted average exercise price (in US and CAN dollars per share) | $ / shares | 2.14 | |
Balance - End of year, Weighted average exercise price (in US and CAN dollars per share) | $ / shares | $ 1.44 | |
Deferred Stock Units DSU's [Member] | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Balance - Beginning of year, Number (in shares) | 173,000 | 212,000 |
Granted, Number (in shares) | 120,000 | |
Exercised, Number (in shares) | (159,000) | |
Canceled/Forfeited, Number (in shares) | ||
Expired, Number (in shares) | ||
Balance - End of year, Number (in shares) | 173,000 | |
Employee Stock Option CAD [Member] | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Balance - Beginning of year, Number (in shares) | 441 | |
Granted, Number (in shares) | ||
Exercised, Number (in shares) | ||
Canceled/Forfeited, Number (in shares) | ||
Expired, Number (in shares) | (441) | |
Balance - End of year, Number (in shares) | ||
Balance - Beginning of year, Weighted average exercise price (in US and CAN dollars per share) | $ / shares | $ 912 | |
Granted, Weighted average exercise price (in US and CAN dollars per share) | $ / shares | ||
Exercised, Weighted average exercise price (in US and CAN dollars per share) | $ / shares | ||
Canceled/Forfeited, Weighted average exercise price (in US and CAN dollars per share) | $ / shares | ||
Expired, Weighted average exercise price (in US and CAN dollars per share) | $ / shares | 912 | |
Balance - End of year, Weighted average exercise price (in US and CAN dollars per share) | $ / shares |
Operating Expenses - Schedule o
Operating Expenses - Schedule of Operating Expenses (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Statement Line Items [Line Items] | ||
Cost of inventory used and services provided | $ 29 | $ 862 |
Gain on modification of building lease | (185) | |
Total operating expenses (note 11) | 1,902 | 2,368 |
Unfunded Plan One [Member] | Other Benefit Plans [Member] | ||
Statement Line Items [Line Items] | ||
Salaries and short-term employee benefits | 219 | 163 |
Consultant fees | 48 | 46 |
Share-based compensation costs | 10 | 11 |
Post-employment benefits including defined contribution plan benefits of $4 in 2021 and $7 in 2020 | 12 | 8 |
Key management personnel compensation | 289 | 228 |
Salaries and short-term employee benefits | 310 | 316 |
Post-employment benefits including defined contribution plan benefits of $7 in 2021 and $2 in 2020 | 38 | 51 |
Share-based compensation costs | 3 | (123) |
Other employees compensation | 351 | 244 |
Cost of inventory used and services provided | 29 | 862 |
Professional fees | 580 | 498 |
Consulting fees | 130 | 141 |
Insurance | 227 | 221 |
Third-party research and development | 52 | 97 |
Travel | 22 | 33 |
Marketing services | 97 | 36 |
Laboratory supplies | 15 | |
Other goods and services | 19 | 30 |
Leasing costs | 34 | 46 |
Gain on modification of building lease | (185) | |
Depreciation and amortization | 36 | 107 |
Operating foreign exchange losses | 21 | 10 |
Total operating expenses (note 11) | $ 1,902 | $ 2,368 |
Operating Expenses - Schedule_2
Operating Expenses - Schedule of Operating Expenses (Details) (Parenthetical) - Unfunded Plan One [Member] - Other Benefit Plans [Member] - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Key Management Personnel Compensation [Member] | ||
Statement Line Items [Line Items] | ||
Post-employment benefits, including defined contribution plan benefits | $ 4 | $ 7 |
Other Employees Compensation [Member] | ||
Statement Line Items [Line Items] | ||
Post-employment benefits, including defined contribution plan benefits | $ 7 | $ 2 |
Supplemental Disclosure of Ca_3
Supplemental Disclosure of Cash Flow Information - Disclosure of Changes in Operating Assets and Liabilities (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Statement of cash flows [abstract] | ||
Trade and other receivables | $ 650 | $ (7) |
Inventory | (40) | 836 |
Prepaid expenses and other current assets | (93) | 378 |
Payables and accrued liabilities | 115 | (492) |
Taxes payable | (129) | |
Deferred revenues | 1,227 | (406) |
Employee future benefits | (83) | (105) |
Increase (decrease) in operating assets and liabilities | $ 1,647 | $ 204 |
Segment Information (Details Na
Segment Information (Details Narrative) | 3 Months Ended |
Mar. 31, 2021Segment | |
Segment Information | |
Number of operating segments | 1 |
Net (Loss) Income Per Share - S
Net (Loss) Income Per Share - Summary of Pertinent Data Relating to Computation of Basic and Diluted Net (Loss) Income Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Earnings per share [line items] | ||
Net (loss) income | $ (1,445) | $ 779 |
Basic weighted average number of shares outstanding (in shares) | 95,444,990 | 21,523,416 |
Net (loss) income per share (basic) | $ (0.02) | $ 0.04 |
Diluted weighted average number of shares outstanding (in shares) | 95,444,990 | 21,860,416 |
Net income (loss) per share (diluted) | $ (0.02) | $ 0.04 |
Stock Options and DSUs [Member] | ||
Earnings per share [line items] | ||
Diluted weighted average number of shares outstanding (in shares) | 337,000 | |
Antidilutive securities excluded from computation of earnings per share (in shares) | 679,400 | 208,357 |
Warrants [Member] | ||
Earnings per share [line items] | ||
Diluted weighted average number of shares outstanding (in shares) | ||
Antidilutive securities excluded from computation of earnings per share (in shares) | 11,663,435 | 9,453,174 |
Commitments and Contingencies_2
Commitments and Contingencies (Details Narrative) € in Thousands, £ in Thousands, $ in Thousands | 3 Months Ended | ||
Mar. 31, 2021USD ($) | Mar. 31, 2021EUR (€) | Mar. 31, 2021GBP (£) | |
Disclosure of contingent liabilities [line items] | |||
Intangible assets recognized, acquired | $ 490 | ||
R&D Contracts [Member] | |||
Disclosure of contingent liabilities [line items] | |||
Potential milestone payments | $ 2,406 | ||
Potential milestone payments, description | The Company expects to pay $2,406, including $2,116 [EUR 1,801], and $290 [GBP 210], in R&D contracts | The Company expects to pay $2,406, including $2,116 [EUR 1,801], and $290 [GBP 210], in R&D contracts | The Company expects to pay $2,406, including $2,116 [EUR 1,801], and $290 [GBP 210], in R&D contracts |
R&D Contracts [Member] | Euro [Member] | |||
Disclosure of contingent liabilities [line items] | |||
Potential milestone payments | € | € 1,801 | ||
R&D Contracts [Member] | GBP [Member] | |||
Disclosure of contingent liabilities [line items] | |||
Potential milestone payments | £ | £ 210 | ||
R&D Milestone Payments [Member] | |||
Disclosure of contingent liabilities [line items] | |||
Potential milestone payments | $ 4,726 | ||
Potential milestone payments, description | Up to $4,726, including $3,141 [EUR 2,675] and $1,585 [GBP 1,150], in R&D milestone payments | Up to $4,726, including $3,141 [EUR 2,675] and $1,585 [GBP 1,150], in R&D milestone payments | Up to $4,726, including $3,141 [EUR 2,675] and $1,585 [GBP 1,150], in R&D milestone payments |
R&D Milestone Payments [Member] | Euro [Member] | |||
Disclosure of contingent liabilities [line items] | |||
Potential milestone payments | € | € 2,675 | ||
R&D Milestone Payments [Member] | GBP [Member] | |||
Disclosure of contingent liabilities [line items] | |||
Potential milestone payments | £ | £ 1,150 | ||
Revenue Related Milestone Payments [Member] | |||
Disclosure of contingent liabilities [line items] | |||
Potential milestone payments | $ 7,656 | ||
Potential milestone payments, description | Up to $7,656, including $5,933 [EUR 5,050] and $1,723 [GBP 1,250], in revenue related milestone payments | Up to $7,656, including $5,933 [EUR 5,050] and $1,723 [GBP 1,250], in revenue related milestone payments | Up to $7,656, including $5,933 [EUR 5,050] and $1,723 [GBP 1,250], in revenue related milestone payments |
Revenue Related Milestone Payments [Member] | Euro [Member] | |||
Disclosure of contingent liabilities [line items] | |||
Potential milestone payments | € | € 5,050 | ||
Revenue Related Milestone Payments [Member] | GBP [Member] | |||
Disclosure of contingent liabilities [line items] | |||
Potential milestone payments | £ | £ 1,250 |
Commitments and Contingencies -
Commitments and Contingencies - Schedule of Expected Future Minimum Lease Payments (Details) $ in Thousands | Mar. 31, 2021USD ($) |
Statement Line Items [Line Items] | |
Service and manufacturing | $ 451 |
R&D contracts | 2,406 |
Total | 2,857 |
Less Than 1 Year [Member] | |
Statement Line Items [Line Items] | |
Service and manufacturing | 440 |
R&D contracts | 1,073 |
Total | 1,513 |
1 - 3 Years [Member] | |
Statement Line Items [Line Items] | |
Service and manufacturing | 11 |
R&D contracts | 1,297 |
Total | 1,308 |
4 - 5 Years [Member] | |
Statement Line Items [Line Items] | |
Service and manufacturing | |
R&D contracts | 36 |
Total | 36 |
More than 5 Years [Member] | |
Statement Line Items [Line Items] | |
Service and manufacturing | |
R&D contracts | |
Total |
Commitments and Contingencies_3
Commitments and Contingencies - Schedule of R&D and Revenue Related Milestone Payments (Details) $ in Thousands | Mar. 31, 2021USD ($) |
Statement Line Items [Line Items] | |
Future potential R&D milestone payments | $ 4,726 |
Future potential revenue milestone payments | 7,656 |
Total | 12,382 |
Less Than 1 Year [Member] | |
Statement Line Items [Line Items] | |
Future potential R&D milestone payments | 29 |
Future potential revenue milestone payments | |
Total | 29 |
1 - 3 Years [Member] | |
Statement Line Items [Line Items] | |
Future potential R&D milestone payments | |
Future potential revenue milestone payments | |
Total | |
4 - 5 Years [Member] | |
Statement Line Items [Line Items] | |
Future potential R&D milestone payments | 431 |
Future potential revenue milestone payments | |
Total | 431 |
More than 5 Years [Member] | |
Statement Line Items [Line Items] | |
Future potential R&D milestone payments | 4,266 |
Future potential revenue milestone payments | 7,656 |
Total | $ 11,922 |