Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2020 | Oct. 16, 2020 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | ProtoKinetix, Inc. | |
Entity Central Index Key | 0001128189 | |
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2020 | |
Current Fiscal Year End Date | --12-31 | |
Entity File Number | 000-32917 | |
Entity Filer Category | Non-accelerated Filer | |
Entity Current Reporting Status | Yes | |
Entity Small Business | true | |
Is Entity Emerging Growth Company? | false | |
Entity Shell Company | false | |
Entity Interactive Data Current | Yes | |
Entity Incorporation State Country Code | NV | |
Entity Common Stock, Shares Outstanding | 281,596,071 | |
Document Fiscal Period Focus | Q3 | |
Document Fiscal Year Focus | 2020 |
BALANCE SHEETS (Unaudited)
BALANCE SHEETS (Unaudited) - USD ($) | Sep. 30, 2020 | Dec. 31, 2019 |
Current Assets | ||
Cash | $ 44,763 | $ 377,349 |
Prepaid expenses (Note 3) | 1,050 | 1,050 |
Total current assets | 45,813 | 378,399 |
Intangible assets (Note 4) | 250,638 | 207,508 |
Total assets | 296,451 | 585,907 |
Current Liabilities | ||
Accounts payable and accrued liabilities | 5,000 | 25,520 |
Total current liabilities | 5,000 | 25,520 |
Stockholders' Equity | ||
Common stock, $0.0000053 par value; 400,000,000 common shares authorized; 281,596,071 and 275,400,259 shares issued and outstanding as at September 30, 2020 and December 31, 2019 respectively | 1,506 | 1,472 |
Additional paid-in capital | 42,900,764 | 36,107,058 |
Accumulated deficit | (42,610,819) | (35,548,143) |
Total stockholders' equity | 291,451 | 560,387 |
Total liabilities and stockholders' equity | $ 296,451 | $ 585,907 |
BALANCE SHEETS (Unaudited) (Par
BALANCE SHEETS (Unaudited) (Parenthetical) - $ / shares | Sep. 30, 2020 | Dec. 31, 2019 |
Statement of Financial Position [Abstract] | ||
Common Stock, Par Value Per Share | $ 0.0000053 | $ 0.0000053 |
Common Stock, Shares Authorized | 400,000,000 | 400,000,000 |
Common Stock, Shares, Issued | 281,596,071 | 275,400,259 |
Common Stock, Shares, Outstanding | 281,596,071 | 275,400,259 |
STATEMENTS OF OPERATIONS (Unaud
STATEMENTS OF OPERATIONS (Unaudited) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
EXPENSES | ||||
Amortization - intangible assets | $ 750 | $ 750 | $ 2,250 | $ 2,250 |
General and administrative | 46,460 | 76,905 | 174,480 | 202,238 |
Professional fees | 39,063 | 31,032 | 116,112 | 92,315 |
Research and development | 142,221 | 140,933 | 438,544 | 279,089 |
Share-based compensation | 1,458,990 | 342,218 | 6,331,290 | 1,167,629 |
Total Expenses | (1,687,484) | (591,838) | (7,062,676) | (1,743,521) |
OTHER ITEM | ||||
Foreign exchange gain or (loss) | (90) | 0 | (106) | |
Net loss for the period | $ (1,687,484) | $ (591,928) | $ (7,062,676) | $ (1,743,627) |
Net loss per common share (basic and diluted) | $ (0.01) | $ 0 | $ (0.03) | $ (0.01) |
Weighted average number of common shares outstanding (basic and diluted) | 279,648,342 | 272,816,256 | 277,211,051 | 267,232,714 |
STATEMENT OF STOCKHOLDERS_ EQUI
STATEMENT OF STOCKHOLDERS’ EQUITY (Unaudited) - USD ($) | Common Stock | Additional Paid-In Capital | Accumulated Deficit | Total |
Beginning Balance, Shares at Dec. 31, 2018 | 259,785,766 | |||
Beginning Balance, Amount at Dec. 31, 2018 | $ 1,389 | $ 31,594,822 | $ (31,350,246) | $ 245,965 |
Issuance of common stock pursuant to private placement offering, Shares | 13,016,667 | |||
Issuance of common stock pursuant to private placement offering, Amount | $ 69 | 816,931 | 817,000 | |
Issuance of common stock pursuant to cashless option exercise, Share | 97,826 | |||
Issuance of common stock pursuant to cashless option exercise, Amount | $ 1 | (1) | ||
Share-based compensation | 1,167,629 | 1,167,629 | ||
Net Loss for the period | (1,743,627) | (1,151,699) | ||
Ending Balance, Shares at Sep. 30, 2019 | 272,900,259 | |||
Ending Balance, Amount at Sep. 30, 2019 | $ 1,459 | 33,579,381 | (33,093,873) | 486,967 |
Beginning Balance, Shares at Jun. 30, 2019 | 272,802,433 | |||
Beginning Balance, Amount at Jun. 30, 2019 | $ 1,458 | 33,237,164 | (32,501,945) | 736,677 |
Issuance of common stock pursuant to cashless option exercise, Share | 97,826 | |||
Issuance of common stock pursuant to cashless option exercise, Amount | $ 1 | (1) | ||
Share-based compensation | 342,218 | 342,218 | ||
Net Loss for the period | (591,928) | (591,928) | ||
Ending Balance, Shares at Sep. 30, 2019 | 272,900,259 | |||
Ending Balance, Amount at Sep. 30, 2019 | $ 1,459 | 33,579,381 | (33,093,873) | 486,967 |
Beginning Balance, Shares at Dec. 31, 2019 | 275,400,259 | |||
Beginning Balance, Amount at Dec. 31, 2019 | $ 1,472 | 36,107,058 | (35,548,143) | 560,387 |
Issuance of common stock pursuant to private placement offering, Shares | 6,195,812 | |||
Issuance of common stock pursuant to private placement offering, Amount | $ 34 | 462,416 | 462,450 | |
Share-based compensation | 6,331,290 | 6,331,290 | ||
Net Loss for the period | (7,062,676) | (7,062,676) | ||
Ending Balance, Shares at Sep. 30, 2020 | 281,596,071 | |||
Ending Balance, Amount at Sep. 30, 2020 | $ 1,506 | 42,900,764 | (42,610,819) | 291,451 |
Beginning Balance, Shares at Jun. 30, 2020 | 277,622,481 | |||
Beginning Balance, Amount at Jun. 30, 2020 | $ 1,484 | 41,179,346 | (40,923,335) | 257,495 |
Issuance of common stock pursuant to private placement offering, Shares | 3,973,590 | |||
Issuance of common stock pursuant to private placement offering, Amount | $ 22 | 262,428 | 262,450 | |
Share-based compensation | 1,458,990 | 1,458,990 | ||
Net Loss for the period | (1,687,484) | (1,687,484) | ||
Ending Balance, Shares at Sep. 30, 2020 | 281,596,071 | |||
Ending Balance, Amount at Sep. 30, 2020 | $ 1,506 | $ 42,900,764 | $ (42,610,819) | $ 291,451 |
STATEMENTS OF CASH FLOWS (Unaud
STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
CASH FLOWS USED IN OPERATING ACTIVITIES | ||
Net loss for the period | $ (7,062,676) | $ (1,743,627) |
Adjustments to reconcile net loss to cash used in operating activities: | ||
Amortization - intangible assets | 2,250 | 2,250 |
Fair value of share-based compensation | 6,331,290 | 1,167,629 |
Changes in operating assets and liabilities: | ||
Prepaid expenses | 0 | (9,540) |
Accounts payable and accrued liabilities | (20,520) | (73,464) |
Net cash used in operating activities | (749,656) | (656,752) |
CASH FLOWS USED IN INVESTING ACTIVITIES | ||
Purchase of Intangible assets | (45,380) | (6,418) |
Net cash used in investing activities | (45,380) | (6,418) |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Issuance of common stock for cash | 462,450 | 817,000 |
Net cash from financing activities | 462,450 | 817,000 |
Net change in cash | (332,586) | 153,830 |
Cash, beginning of period | 377,349 | 136,029 |
Cash, end of period | 44,763 | 289,859 |
Cash paid for interest | 0 | 0 |
Cash paid for income taxes | $ 0 | $ 0 |
1. Basis of Presentation - Goin
1. Basis of Presentation - Going Concern Uncertainties | 9 Months Ended |
Sep. 30, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation - Going Concern Uncertainties | Note 1. Basis of Presentation – Going Concern Uncertainties ProtoKinetix, Incorporated (the “Company”), a development stage company, was incorporated under the laws of the State of Nevada on December 23, 1999. The Company is a medical research company whose mission is the advancement of human health care. The Company is currently researching the benefits and feasibility of synthesized Antifreeze Glycoproteins (“AFGP”) or anti-aging glycoproteins, trademarked AAGP. During the year ended December 31, 2015, the Company acquired certain patents and rights for cash consideration of $30,000 (25,000 Euros), as well as additional patent applications for cash consideration of $10,000 and 6,000,000 share purchase warrants with a fair value of $25,000 (Note 4). The Company’s financial statements are prepared consistent with accounting principles generally accepted in the United States applicable to a going concern. The Company has not developed a commercially viable product, has not generated any significant revenue to date, and has incurred losses since inception, resulting in a net accumulated deficit at September 30, 2020. These factors raise substantial doubt about the Company’s ability to continue as a going concern. The Company needs additional working capital to continue its medical research or to be successful in any future business activities and continue to pay its liabilities. Therefore, continuation of the Company as a going concern is dependent upon obtaining the additional working capital necessary to accomplish its objective. Management is presently engaged in seeking additional working capital through equity financing or related party loans. In March 2020, the World Health Organization declared coronavirus COVID-19 a global pandemic. This contagious disease outbreak, which has continued to spread, and any related adverse public health developments, has adversely affected workforces, economies, and financial markets globally, potentially leading to an economic downturn. It is not possible for the Company to predict the duration or magnitude of the adverse results of the outbreak and its effects on the Company’s business or ability to raise funds. The accompanying financial statements do not include any adjustments to the recorded assets or liabilities that might be necessary should the Company fail in any of the above objectives and is unable to operate for the coming year. |
2. Summary of Significant Accou
2. Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2020 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Note 2. Summary of Significant Accounting Policies Basis of Presentation The accompanying unaudited financial statements have been prepared by the Company in conformity with accounting principles generally accepted in the United States of America (“US GAAP”) applicable to interim financial information and with the rules and regulations of the United States Securities and Exchange Commission. Accordingly, certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles have been condensed, or omitted, pursuant to such rules and regulations. In the opinion of management, the unaudited interim financial statements include all adjustments necessary for the fair presentation of the results of the interim periods presented. All adjustments are of a normal recurring nature, except as otherwise noted below. These financial statements should be read in conjunction with the Company’s audited financial statements and notes thereto for the year ended December 31, 2019, included in the Company’s Annual Report on Form 10-K, filed February 19, 2020, with the Securities and Exchange Commission. The results of operations for the interim periods are not necessarily indicative of the results of operations for any other interim period or for a full fiscal year. Use of Estimates Preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. The more significant accounting estimates inherent in the preparation of the Company’s financial statements include estimates as to valuation of equity related instruments issued, deferred income taxes, and the useful life and impairment of intangible assets. Cash Cash consists of funds held in checking accounts. Cash balances may exceed federally insured limits from time to time. Fair Value of Financial Instruments Financial instruments, which includes cash and accounts payable and accrued liabilities, are carried at cost, which management believes approximates fair value due to the short-term nature of these instruments. The Company measures the fair value of financial assets and liabilities pursuant to ASC 820 “Fair Value Measurements and Disclosures” which defines fair value, establishes a framework for measuring fair value, and expands disclosures about fair value measurements. ASC 820 establishes a fair value hierarchy, which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The policy describes three levels of inputs that may be used to measure fair value: Level 1 – quoted prices in active markets for identical assets or liabilities Level 2 – quoted prices for similar assets and liabilities in active markets or inputs that are observable Level 3 – inputs that are unobservable (for example cash flow modeling inputs based on assumptions) Level 1 inputs are used to measure cash. At September 30, 2020, there were no other assets or liabilities subject to additional disclosure. Income Taxes The Company accounts for income taxes following the assets and liability method in accordance with the ASC 740 “Income Taxes.” Under such method, deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. The Company applies the accounting guidance issued to address the accounting for uncertain tax positions. This guidance clarifies the accounting for income taxes, by prescribing a minimum recognition threshold a tax position is required to meet before being recognized in the financial statements as well as provides guidance on derecognition, measurement, classification, interest and penalties, accounting in interim periods, disclosure and transition. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years that the asset is expected to be recovered or the liability settled. Intangible assets – patent and patent application costs The Company owns intangible assets consisting of certain patents and patent applications. Intangible assets acquired separately are measured on initial recognition at cost. Following initial recognition, intangible assets are carried at cost less any accumulated amortization and any accumulated impairment losses. Subsequent expenditures are capitalized only when they increase the future economic benefits embodied in the specific asset to which they relate. All other expenditures are recognized in profit or loss as incurred. As at September 30, 2020, the Company does not hold any intangible assets with indefinite lives. Intangible assets with finite lives are amortized over the useful economic life and assessed for impairment whenever there is an indication that the intangible asset may be impaired. The amortization method and amortization period of an intangible asset with a finite life is reviewed at least annually. Changes in the expected useful life or the expected pattern of consumption of future economic benefits embodied in the asset is accounted for by changing the amortization period or method, as appropriate, and are treated as changes in accounting estimates. Amortization is recognized in profit or loss on a straight-line basis over the estimated useful lives of the Company’s patents. No amortization is recognized on patent application costs, as amortization of these costs will only commence once the patents have been granted. Research and Development Costs Research and development costs are expensed as incurred. Loss per Share and Potentially Dilutive Securities Basic loss per share is computed by dividing the net loss available to common stockholders by the weighted average number of common shares outstanding in the period. Diluted loss per share takes into consideration common shares outstanding (computed under basic earnings per share) and potentially dilutive securities. The effect of 83,100,000 stock options (September 30, 2019 – 76,450,000), and 8,500,000 warrants (September 30, 2019 – 6,000,000) were not included in the computation of diluted earnings per share for all periods presented because it was anti-dilutive due to the Company’s losses. Share-Based Compensation The Company has granted warrants and options to purchase shares of the Company’s common stock to various parties for consulting services. The fair values of the warrants and options issued have been estimated using the Black-Scholes Option Pricing Model. The Company accounts for stock compensation with persons classified as employees for accounting purposes in accordance with ASC 718 “Compensation – Stock Compensation”, which recognizes awards at fair value on the date of grant and recognition of compensation over the service period for awards expected to vest. Cliff Vesting is used and awards vest on the last day of the vesting period. The fair value of stock options is determined using the Black-Scholes Option Pricing Model. The fair value of common shares issued for services is determined based on the Company’s stock price on the date of issuance. Share-based compensation for non-employees in exchange for goods and services used or consumed in an entity’s own operations are also recorded at fair value on the measurement date and accounted for in accordance with ASC 718. The measurement of share-based compensation is subject to periodic adjustment as the underlying instruments vest. The fair value of stock options is estimated using the Black-Scholes Option Pricing Model and the compensation charges are amortized over the vesting period. Common stock Common stock issued for non-monetary consideration are recorded at their fair value on the measurement date and classified as equity. The measurement date is defined as the earliest of the date at which the commitment for performance by the counterparty to earn the common shares is reached or the date at which the counterparty’s performance is complete. Transaction costs directly attributable to the issuance of common stock, units and stock options are recognized as a deduction from equity, net of any tax effects. Related Party Transactions A related party is generally defined as (i) any person that holds 10% or more of the Company’s securities and their immediate families, (ii) the Company’s management, (iii) someone that directly or indirectly controls, is controlled by or is under common control with the Company, or (iv) anyone who can significantly influence the financial and operating decisions of the Company. A transaction is considered to be a related party transaction when there is a transfer of resources or obligations between related parties. Recent Accounting Pronouncements Certain new accounting pronouncements that have been issued are not expected to have a material effect on the Company’s financial statements. |
3. Prepaid Expenses
3. Prepaid Expenses | 9 Months Ended |
Sep. 30, 2020 | |
Prepaid Expense, Current [Abstract] | |
Prepaid Expenses | Note 3. Prepaid Expenses The following summarizes the Company’s prepaid expenses outstanding as at September 30, 2020 and December 31, 2019: September 30, December 31, Rental deposit $ 1,050 $ 1,050 $ 1,050 $ 1,050 |
4. Intangible Assets
4. Intangible Assets | 9 Months Ended |
Sep. 30, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets | Note 4. Intangible Assets Intangible asset transactions are summarized as follows: Patent Rights Patent Application Rights Total Cost Balance, December 31, 2018 $ 30,000 $ 168,271 $ 198,271 Additions — 22,737 22,737 Balance, December 31, 2019 $ 30,000 $ 191,008 $ 221,008 Additions — 45,380 45,380 Balance, September 30, 2020 $ 30,000 $ 236,388 $ 266,388 Accumulated amortization Balance, December 31, 2018 $ 10,500 $ — $ 10,500 Amortization 3,000 — 3,000 Balance, December 31, 2019 $ 13,500 $ — $ 13,500 Amortization 2,250 — 2,250 Balance,September 30, 2020 $ 15,750 $ — $ 15,750 Net carrying amounts December 31, 2019 $ 16,500 $ 191,008 $ 207,508 September 30, 2020 $ 14,250 $ 236,388 $ 250,638 During the year ended December 31, 2015, the Company entered into an Assignment of Patents and Patent Application (effective January 1, 2015) (the “Patent Assignment”) with the Institut National des Sciences Appliquees de Rouen (“INSA”) for the assignment of certain patents and all rights associated therewith (the “Patents”). The Company and INSA had previously entered into a licensing agreement for the Patents in August 2004. The Patent Assignment transfers all of the Patents and rights associated therewith to the Company, upon payment to INSA in the sum of $30,000. During the nine month period ended September 30, 2020, the Company recorded $2,250 (2019 - $2,250) in amortization expense associated with the Patents. During the year ended December 31, 2015, the Company entered into a Technology Transfer Agreement with Grant Young for the assignment of his 50% ownership of certain patents and all rights associated therewith (the “Patent Application Rights”). In exchange for the Patent Application Rights, the Company agreed to pay $10,000 (paid) and to issue 6,000,000 warrants (issued) to purchase shares of the Company’s common stock at an exercise price of $0.10 per share for a period of five years. The Patent Application Rights had a total fair value of $35,000, which was allocated as $10,000 to the cash consideration paid, with the remaining $25,000 being allocated to the warrant component of the overall consideration. The Company has incurred $201,388 in direct costs relating to the Patent Application Rights, $45,380 of which were incurred during the nine month period ended September 30, 2020. The remaining 50% ownership of the Patent Application Rights was acquired from the Governors of the University of Alberta in exchange for a future gross revenue royalty. During the year ended December 31, 2016, the Company entered into a Universal Assignment with Grant Young for the assignment of his ownership of certain new and useful improvements in an invention entitled “Use of Anti-Aging Glycoprotein for Enhancing Survival of Neurosensory Precursor Cells” (the “New Patent Application Rights”). In exchange for the New Patent Application Rights, the Company agreed to pay $1 (paid). The Company incurred $2,415 in direct costs relating to the New Patent Application Rights during the year ended December 31, 2016. No amortization was recorded on the Patent Application Rights to September 30, 2020. |
5. Stock Options
5. Stock Options | 9 Months Ended |
Sep. 30, 2020 | |
Stock Options | |
Stock Options | Note 5. Stock Options Pursuant to an amendment on April 6, 2020, the aggregate number of shares that may be issued under the 2017 Stock Option and Stock Bonus Plan (the “2017 Plan”) is 85,700,000 shares, subject to adjustment as provided therein. The 2017 Plan is administered by the Company’s Board of Directors, or a committee appointed by the Board of Directors, and includes two types of options. Options intended to qualify as incentive stock options under Section 422 of the Internal Revenue Code of 1986, as amended, are referred to as incentive options. Options that are not intended to qualify as incentive options are referred to as non-qualified options. The exercise price of an option may be paid in cash, in shares of the Company's common stock or other property having a fair market value equal to the exercise price of the option, or in a combination of cash, shares, other securities and property. As of September 30, 2020, there are 83,100,000 options granted and outstanding under the 2017 Plan. Stock option transactions are summarized as follows: Number of Stock Options Weighted Average Exercise Price Weighted Average Remaining Life $ (Years) Outstanding, December 31, 2019 91,450,000 0.14 Options cancelled (36,000,000 ) 0.13 Options expired (2,000,000 ) 0.04 Options granted 29,650,000 0.13 Outstanding, September 30, 2020 83,100,000 0.15 4.23 Number of Stock Options Weighted Average Exercise Price Weighted Average Remaining Life $ (Years) Outstanding, December 31, 2018 58,600,000 0.07 Options cancelled (16,000,000 ) 0.07 Options exercised (250,000 ) 0.07 Options granted 34,100,000 0.25 Outstanding, September 30, 2019 76,450,000 0.15 3.48 On May 6, 2020, the Company granted 650,000 stock options to a research and development, and a business development consultant of the Company. The options are exercisable at $0.11 per share for a period of six years and expire on May 5, 2026. The options vest in equal instalments starting on the date of grant with the remaining options vesting on a quarterly basis beginning on June 30, 2020. The Company granted 22,000,000 replacement options and 7,000,000 replacement options on March 26, 2020 and June 12, 2020, respectively, to certain key management (Note 8) and a consultant (Note 9) of the Company. Total share-based compensation for 29,650,000 stock options granted (2019 - 34,100,000) and vested during the nine month period ended September 30, 2020 was $6,331,290 (2019 - $1,167,629) at a weighted average fair value per option of $0.12 (2019 - $0.07). The fair values of the stock options granted were estimated using the Black-Scholes Option Pricing Model, based on the following weighted average assumptions: September 30, 2020 September 30, 2019 Risk-free interest rate 2.55 % 2.41 % Dividend yield 0.00 % 0.00 % Expected stock price volatility 143.57 % 125.00 % Expected forfeiture rate 0.00 % 0.00 % Expected life 5.09 years 4.60 years The following non-qualified stock options were outstanding and exercisable at September 30, 2020: Expiry date Exercise Price Number of Options Number of $ December 31, 2020 0.05 1,200,000 1,200,000 November 14, 2021 0.07 750,000 750,000 December 31, 2022 0.06 800,000 800,000 August 31, 2023 0.08 600,000 600,000 November 8, 2023 0.09 15,000,000 15,000,000 May 5, 2023 0.13 1,600,000 1,600,000 July 14, 2024 0.26 18,500,000 18,500,000 November 17, 2024 0.11 15,000,000 11,250,000 March 26, 2026 0.14 22,000,000 22,000,000 May 5, 2026 0.11 650,000 487,500 June 11, 2026 0.12 7,000,000 7,000,000 83,100,000 79,187,500 As at September 30, 2020, the aggregate intrinsic value of the Company’s stock options is $458,165 (December 31, 2019 – $1,005,350). |
6. Warrants
6. Warrants | 9 Months Ended |
Sep. 30, 2020 | |
Warrants | |
Warrants | Note 6. Warrants Warrant transactions for the nine months ended September 30, 2020 are summarized as follows: Number of Weighted Balance,December 31, 2018 and September 30, 2019 6,000,000 $ 0.26 Balance, December 31, 2019 and September 30, 2020 8,500,000 $ 0.22 The following warrants were outstanding and exercisable as at September 30, 2020: Number of Warrants Exercise Price ($) Expiry Date 6,000,000 0.26 July 14, 2024 833,333 0.12 October 15, 2022 250,000 0.12 October 21, 2022 116,667 0.12 November 11, 2022 83,334 0.12 November 12, 2022 833,333 0.12 December 1, 2022 166,667 0.12 December 18, 2022 216,666 0.12 December 18, 2022 8,500,000 |
7. Stockholders' Equity
7. Stockholders' Equity | 9 Months Ended |
Sep. 30, 2020 | |
Stockholders' Equity Note [Abstract] | |
Stockholders' Equity | Note 7. Stockholders’ Equity The Company is authorized to issue 400,000,000 (December 31, 2019 – 400,000,000) shares of $0.0000053 par value common stock. Each holder of common stock has the right to one vote but does not have cumulative voting rights. Shares of common stock are not subject to any redemption or sinking fund provisions, nor do they have any preemptive, subscription or conversion rights. Holders of common stock are entitled to receive dividends whenever funds are legally available and when declared by the board of directors, subject to the prior rights of holders of all classes of stock outstanding having priority rights as to dividends. No dividends have been declared or paid as of September 30, 2020 (December 31, 2019 - $nil). During the nine month period ended September 30, 2020, the Company: a) Issued 2,222,222 shares of common stock to investors at $0.09 for gross proceeds of $200,000. b) Issued 320,513 shares of common stock to investors at $0.078 for gross proceeds of $25,000. c) Issued 3,653,077 shares of common stock to investors at $0.065 for gross proceeds of $237,450. During the nine month period ended September 30, 2019, the Company: a) Issued 750,000 shares of common stock to investors at $0.06 for gross proceeds of $45,000. b) Issued 10,000,000 shares of common stock to investors at $0.05 for gross proceeds of $500,000. c) Issued 2,266,667 shares of common stock to investors at $0.12 for gross proceeds of $272,000. d) Issued 97,826 shares of common stock to the CFO pursuant to a cashless exercise of 250,000 stock options. |
8. Related Party Transactions a
8. Related Party Transactions and Balances | 9 Months Ended |
Sep. 30, 2020 | |
Related Party Transactions [Abstract] | |
Related Party Transactions and Balances | Note 8. Related Party Transactions and Balances During the nine month period ended September 30, 2020 and 2019, the Company entered into the following related party transactions: a) Pursuant to a consulting agreement with an effective date of November 14, 2017, a total of $45,000 (2019 - $45,000) was paid or accrued to the Company's CFO. During the nine months ended September 30, 2020, the Company reimbursed a company controlled by the CFO a total of $9,450 (2019 - $9,450) in office rent. b) On March 25, 2020, the Company cancelled and concurrently approved for issuance on March 26, 2020 10,000,000 stock options and 2,000,000 stock options previously issued to the Company’s CEO and a Director of the Company in 2017, respectively. The 12,000,000 replacement options granted have a term of 6 years and are exercisable at a price of $0.14 per share, expiring on March 25, 2026. Also on March 25, 2020, the Company cancelled an additional 5,000,000 stock options previously issued to the Company’s CEO in 2019. There were no replacement options granted in connection with these cancelled options. In accordance with ASC 718, the 12,000,000 replacement options were accounted for as a modification of the terms of the cancelled award, with the incremental cost being measured as the excess of the fair value of the replacement options over the fair value of the cancelled options at the cancellation date. Total share-based compensation of $282,844 was recorded in connection with the option modification, based on the following assumptions used in the Black-Scholes Option Pricing Model: risk-free interest rate of 1.76%; dividend yield of 0.00%; stock price volatility of 144.40%; forfeiture rate of 0%; and an expected life of 6 years. b) On June 12, 2020, the Company cancelled 4,000,000 stock options previously issued in July 2019 to the Company’s CFO and a replaced them with 3,500,000 stock options. The 3,500,000 replacement options granted have a term of 6 years and are exercisable at a price of $0.12 per share, expiring on June 11, 2026. The 3,500,000 replacement options were accounted for as a modification of the terms of the cancelled award, with the incremental cost being measured as the excess of the fair value of the replacement options over the fair value of the cancelled options at the cancellation date. Total share-based compensation of $5,704 was recorded in connection with the option modification, based on the following assumptions used in the Black-Scholes Option Pricing Model: risk-free interest rate of 1.76%; dividend yield of 0.00%; stock price volatility of 144.75%; forfeiture rate of 0%; and an expected life of 6 years. c) The Company recognized $3,233,377 (2019 - $502,795) in share-based compensation during the period associated with stock options granted to key management personnel. As at September 30, 2020 and December 31, 2019, there were $nil balances owing to related parties. |
9. Commitments and Contingency
9. Commitments and Contingency | 9 Months Ended |
Sep. 30, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingency | Note 9. Commitments and Contingency As at September 30, 2020, the Company has the following commitments: a) Entered into a consulting agreement with an effective date of January 1, 2017 whereby the Company would pay the consultant $7,000 per month for providing research and development services. On March 25, 2020, the Company cancelled and concurrently approved for issuance on March 26, 2020, 10,000,000 stock options previously issued to the consultant in 2017. The 10,000,000 replacement options granted have a term of 6 years and are exercisable at a price of $0.14 per share, expiring on March 25, 2026. The 10,000,000 replacement options were accounted for as a modification of the terms of the cancelled award, with the incremental cost being measured as the excess of the fair value of the replacement options over the fair value of the cancelled options at the cancellation date. Total share-based compensation of $235,703 was recorded in connection with the option modification based on the following assumptions used in the Black-Scholes Option Pricing Model: risk-free interest rate of 0.81%; dividend yield of 0.00%; stock price volatility of 144.40%; forfeiture rate of 0%; and an expected life of 6 years. On June 12, 2020, the Company cancelled 4,000,000 stock options previously issued in July 2019 to the consultant and a replaced them with 3,500,000 stock options. The 3,500,000 replacement options granted have a term of 6 years and are exercisable at a price of $0.12 per share, expiring on June 11, 2026. There was no incremental cost recorded on the option modification based on the following assumptions used in the Black-Scholes Option Pricing Model: risk-free interest rate of 1.76%; dividend yield of 0.00%; stock price volatility of 144.75%; forfeiture rate of 0%; and an expected life of 6 years. b) Entered into a consulting agreement effective January 1, 2018, whereby the Company would pay the consultant $1,000 per month for a term of 1 year for providing public relations services, unless otherwise terminated by either party with at least 30 days’ notice. c) Entered into a consulting agreement effective April 1, 2019, whereby the Company would pay the consultant $1,500 per month minimum plus travel expenses for a term of 1 year for providing research consulting services, unless otherwise terminated by either party with at least 30 days’ notice. On May 6, 2020, the Company granted the consultant 500,000 stock options exercisable at a price of $0.11 per share, expiring on May 5, 2026 (Note 5). d) Entered into a consulting agreement effective September 1, 2020, whereby the Company would pay the consultant CAD $3,000 per month for a term of 1 year for providing technical expertise and public relations services, unless otherwise terminated by either party with at least 30 days’ notice. Contingency The Company was delinquent in filing certain income tax returns with the U.S. Internal Revenue Service and reports disclosing its interest in foreign bank accounts on form TDF 90-22.1, "Report of Foreign Bank and Financial Accounts" ("FBARs"). In September 2015, the Company filed the delinquent income tax returns and has sought waivers of any penalties under the IRS Offshore Voluntary Disclosure Program for late filing of the returns and FBARs. Under the program, the IRS has indicated that it will not impose a penalty for the failure to file delinquent income tax returns if there are no under reported tax liabilities. On November 30, 2017, the Company received a letter from the IRS concluding their review of the Company's tax returns under the program and accepting the returns as filed. No penalties have been assessed by the IRS to date, and management does not believe that the Company will incur any penalties relating to the tax years submitted under the program. |
2. Summary of Significant Acc_2
2. Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2020 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying unaudited financial statements have been prepared by the Company in conformity with accounting principles generally accepted in the United States of America (“US GAAP”) applicable to interim financial information and with the rules and regulations of the United States Securities and Exchange Commission. Accordingly, certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles have been condensed, or omitted, pursuant to such rules and regulations. In the opinion of management, the unaudited interim financial statements include all adjustments necessary for the fair presentation of the results of the interim periods presented. All adjustments are of a normal recurring nature, except as otherwise noted below. These financial statements should be read in conjunction with the Company’s audited financial statements and notes thereto for the year ended December 31, 2019, included in the Company’s Annual Report on Form 10-K, filed February 19, 2020, with the Securities and Exchange Commission. The results of operations for the interim periods are not necessarily indicative of the results of operations for any other interim period or for a full fiscal year. |
Use of Estimates | Use of Estimates Preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. The more significant accounting estimates inherent in the preparation of the Company’s financial statements include estimates as to valuation of equity related instruments issued, deferred income taxes, and the useful life and impairment of intangible assets. |
Cash | Cash Cash consists of funds held in checking accounts. Cash balances may exceed federally insured limits from time to time. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments Financial instruments, which includes cash and accounts payable and accrued liabilities, are carried at cost, which management believes approximates fair value due to the short-term nature of these instruments. The Company measures the fair value of financial assets and liabilities pursuant to ASC 820 “Fair Value Measurements and Disclosures” which defines fair value, establishes a framework for measuring fair value, and expands disclosures about fair value measurements. ASC 820 establishes a fair value hierarchy, which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The policy describes three levels of inputs that may be used to measure fair value: Level 1 – quoted prices in active markets for identical assets or liabilities Level 2 – quoted prices for similar assets and liabilities in active markets or inputs that are observable Level 3 – inputs that are unobservable (for example cash flow modeling inputs based on assumptions) Level 1 inputs are used to measure cash. At September 30, 2020, there were no other assets or liabilities subject to additional disclosure. |
Income Taxes | Income Taxes The Company accounts for income taxes following the assets and liability method in accordance with the ASC 740 “Income Taxes.” Under such method, deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. The Company applies the accounting guidance issued to address the accounting for uncertain tax positions. This guidance clarifies the accounting for income taxes, by prescribing a minimum recognition threshold a tax position is required to meet before being recognized in the financial statements as well as provides guidance on derecognition, measurement, classification, interest and penalties, accounting in interim periods, disclosure and transition. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years that the asset is expected to be recovered or the liability settled. |
Intangible assets - patent and patent application costs | Intangible assets – patent and patent application costs The Company owns intangible assets consisting of certain patents and patent applications. Intangible assets acquired separately are measured on initial recognition at cost. Following initial recognition, intangible assets are carried at cost less any accumulated amortization and any accumulated impairment losses. Subsequent expenditures are capitalized only when they increase the future economic benefits embodied in the specific asset to which they relate. All other expenditures are recognized in profit or loss as incurred. As at September 30, 2020, the Company does not hold any intangible assets with indefinite lives. Intangible assets with finite lives are amortized over the useful economic life and assessed for impairment whenever there is an indication that the intangible asset may be impaired. The amortization method and amortization period of an intangible asset with a finite life is reviewed at least annually. Changes in the expected useful life or the expected pattern of consumption of future economic benefits embodied in the asset is accounted for by changing the amortization period or method, as appropriate, and are treated as changes in accounting estimates. Amortization is recognized in profit or loss on a straight-line basis over the estimated useful lives of the Company’s patents. No amortization is recognized on patent application costs, as amortization of these costs will only commence once the patents have been granted. |
Research and Development Costs | Research and Development Costs Research and development costs are expensed as incurred. |
Loss per Share and Potentially Dilutive Securities | Loss per Share and Potentially Dilutive Securities Basic loss per share is computed by dividing the net loss available to common stockholders by the weighted average number of common shares outstanding in the period. Diluted loss per share takes into consideration common shares outstanding (computed under basic earnings per share) and potentially dilutive securities. The effect of 83,100,000 stock options (September 30, 2019 – 76,450,000), and 8,500,000 warrants (September 30, 2019 – 6,000,000) were not included in the computation of diluted earnings per share for all periods presented because it was anti-dilutive due to the Company’s losses. |
Share-Based Compensation | Share-Based Compensation The Company has granted warrants and options to purchase shares of the Company’s common stock to various parties for consulting services. The fair values of the warrants and options issued have been estimated using the Black-Scholes Option Pricing Model. The Company accounts for stock compensation with persons classified as employees for accounting purposes in accordance with ASC 718 “Compensation – Stock Compensation”, which recognizes awards at fair value on the date of grant and recognition of compensation over the service period for awards expected to vest. Cliff Vesting is used and awards vest on the last day of the vesting period. The fair value of stock options is determined using the Black-Scholes Option Pricing Model. The fair value of common shares issued for services is determined based on the Company’s stock price on the date of issuance. Share-based compensation for non-employees in exchange for goods and services used or consumed in an entity’s own operations are also recorded at fair value on the measurement date and accounted for in accordance with ASC 718. The measurement of share-based compensation is subject to periodic adjustment as the underlying instruments vest. The fair value of stock options is estimated using the Black-Scholes Option Pricing Model and the compensation charges are amortized over the vesting period. |
Common stock | Common stock Common stock issued for non-monetary consideration are recorded at their fair value on the measurement date and classified as equity. The measurement date is defined as the earliest of the date at which the commitment for performance by the counterparty to earn the common shares is reached or the date at which the counterparty’s performance is complete. Transaction costs directly attributable to the issuance of common stock, units and stock options are recognized as a deduction from equity, net of any tax effects. |
Related Party Transactions | Related Party Transactions A related party is generally defined as (i) any person that holds 10% or more of the Company’s securities and their immediate families, (ii) the Company’s management, (iii) someone that directly or indirectly controls, is controlled by or is under common control with the Company, or (iv) anyone who can significantly influence the financial and operating decisions of the Company. A transaction is considered to be a related party transaction when there is a transfer of resources or obligations between related parties. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Certain new accounting pronouncements that have been issued are not expected to have a material effect on the Company’s financial statements. |
3. Prepaid Expenses (Tables)
3. Prepaid Expenses (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Prepaid Expense, Current [Abstract] | |
Prepaid expenses and deposits outstanding | The following summarizes the Company’s prepaid expenses outstanding as at September 30, 2020 and December 31, 2019: September 30, December 31, Rental deposit $ 1,050 $ 1,050 $ 1,050 $ 1,050 |
4. Intangible Assets (Tables)
4. Intangible Assets (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible asset transactions | Intangible asset transactions are summarized as follows: Patent Rights Patent Application Rights Total Cost Balance, December 31, 2018 $ 30,000 $ 168,271 $ 198,271 Additions — 22,737 22,737 Balance, December 31, 2019 $ 30,000 $ 191,008 $ 221,008 Additions — 45,380 45,380 Balance, September 30, 2020 $ 30,000 $ 236,388 $ 266,388 Accumulated amortization Balance, December 31, 2018 $ 10,500 $ — $ 10,500 Amortization 3,000 — 3,000 Balance, December 31, 2019 $ 13,500 $ — $ 13,500 Amortization 2,250 — 2,250 Balance,September 30, 2020 $ 15,750 $ — $ 15,750 Net carrying amounts December 31, 2019 $ 16,500 $ 191,008 $ 207,508 September 30, 2020 $ 14,250 $ 236,388 $ 250,638 |
5. Stock Options (Tables)
5. Stock Options (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Stock Options | |
Schedule of Share-based Compensation, Stock Options, Activity | Stock option transactions are summarized as follows: Number of Stock Options Weighted Average Exercise Price Weighted Average Remaining Life $ (Years) Outstanding, December 31, 2019 91,450,000 0.14 Options cancelled (36,000,000 ) 0.13 Options expired (2,000,000 ) 0.04 Options granted 29,650,000 0.13 Outstanding, September 30, 2020 83,100,000 0.15 4.23 Number of Stock Options Weighted Average Exercise Price Weighted Average Remaining Life $ (Years) Outstanding, December 31, 2018 58,600,000 0.07 Options cancelled (16,000,000 ) 0.07 Options exercised (250,000 ) 0.07 Options granted 34,100,000 0.25 Outstanding, September 30, 2019 76,450,000 0.15 3.48 |
Schedule of valuation assumptions for options | The fair values of the stock options granted were estimated using the Black-Scholes Option Pricing Model, based on the following weighted average assumptions: September 30, 2020 September 30, 2019 Risk-free interest rate 2.55 % 2.41 % Dividend yield 0.00 % 0.00 % Expected stock price volatility 143.57 % 125.00 % Expected forfeiture rate 0.00 % 0.00 % Expected life 5.09 years 4.60 years |
Schedule of options by exercise price | The following non-qualified stock options were outstanding and exercisable at September 30, 2020: Expiry date Exercise Price Number of Options Number of $ December 31, 2020 0.05 1,200,000 1,200,000 November 14, 2021 0.07 750,000 750,000 December 31, 2022 0.06 800,000 800,000 August 31, 2023 0.08 600,000 600,000 November 8, 2023 0.09 15,000,000 15,000,000 May 5, 2023 0.13 1,600,000 1,600,000 July 14, 2024 0.26 18,500,000 18,500,000 November 17, 2024 0.11 15,000,000 11,250,000 March 26, 2026 0.14 22,000,000 22,000,000 May 5, 2026 0.11 650,000 487,500 June 11, 2026 0.12 7,000,000 7,000,000 83,100,000 79,187,500 |
6. Warrants (Tables)
6. Warrants (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Warrants | |
Schedule of Warrant Activity | Warrant transactions for the nine months ended September 30, 2020 are summarized as follows: Number of Weighted Balance,December 31, 2018 and September 30, 2019 6,000,000 $ 0.26 Balance, December 31, 2019 and September 30, 2020 8,500,000 $ 0.22 |
Schedule of Stockholders' Equity Note, Warrants or Rights | The following warrants were outstanding and exercisable as at September 30, 2020: Number of Warrants Exercise Price ($) Expiry Date 6,000,000 0.26 July 14, 2024 833,333 0.12 October 15, 2022 250,000 0.12 October 21, 2022 116,667 0.12 November 11, 2022 83,334 0.12 November 12, 2022 833,333 0.12 December 1, 2022 166,667 0.12 December 18, 2022 216,666 0.12 December 18, 2022 8,500,000 |
2. Summary of Significant Acc_3
2. Summary of Significant Accounting Policies (Details Narrative) - shares | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Warrant | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share | 8,500,000 | 6,000,000 |
Stock options | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share | 83,100,000 | 76,450,000 |
3. Prepaid Expenses (Details)
3. Prepaid Expenses (Details) - USD ($) | Sep. 30, 2020 | Dec. 31, 2019 |
Prepaid Expense, Current [Abstract] | ||
Rental deposit | $ 1,050 | $ 1,050 |
Total | $ 1,050 | $ 1,050 |
4. Intangible Assets (Details)
4. Intangible Assets (Details) - USD ($) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2020 | Dec. 31, 2019 | |
Cost | ||
Beginning balance | $ 221,008 | $ 198,271 |
Additions | 45,380 | 22,737 |
Ending balance | 266,388 | 221,008 |
Accumulated amortization | ||
Beginning balance | 13,500 | 10,500 |
Amortization | 2,250 | 3,000 |
Ending balance | 15,750 | 13,500 |
Net carrying amounts | 250,638 | 207,508 |
Patent Rights [Member] | ||
Cost | ||
Beginning balance | 30,000 | 30,000 |
Additions | 0 | 0 |
Ending balance | 30,000 | 30,000 |
Accumulated amortization | ||
Beginning balance | 13,500 | 10,500 |
Amortization | 2,250 | 3,000 |
Ending balance | 15,750 | 13,500 |
Net carrying amounts | 14,250 | 191,008 |
Patent Application Rights [Member] | ||
Cost | ||
Beginning balance | 191,008 | 168,271 |
Additions | 45,380 | 22,737 |
Ending balance | 236,388 | 191,008 |
Accumulated amortization | ||
Beginning balance | 0 | 0 |
Amortization | 0 | 0 |
Ending balance | 0 | 0 |
Net carrying amounts | $ 236,388 | $ 16,500 |
4. Intangible Assets (Details N
4. Intangible Assets (Details Narrative) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2016 | |
Amortization - intangible assets | $ 750 | $ 750 | $ 2,250 | $ 2,250 | |
Patent Application Rights [Member] | |||||
Direct cost | $ 45,380 | $ 2,415 |
5. Stock Options (Details)
5. Stock Options (Details) - $ / shares | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Options granted | 29,650,000 | 34,100,000 |
Outstanding, ending | 83,100,000 | |
Stock options | ||
Outstanding, beginning | 91,450,000 | 58,600,000 |
Options cancelled | (36,000,000) | (16,000,000) |
Options expired | (2,000,000) | |
Options exercised | (250,000) | |
Options granted | 29,650,000 | 34,100,000 |
Outstanding, ending | 83,100,000 | 76,450,000 |
Weighted average exercise price beginning balance | $ 0.14 | $ .07 |
Weighted Average Exercise Price, cacelled | 0.13 | 0.07 |
Weighted Average Exercise Price, expired | 0.04 | |
Weighted Average Exercise Price, Options exercised | 0.07 | |
Weighted Average Exercise Price, granted | 0.13 | 0.25 |
Weighed average exercise price ending balance | $ 0.15 | $ 0.15 |
Weighted Average Remaining Life (Years) | 4 years 2 months 23 days | 3 years 5 months 23 days |
5. Stock Options (Details 1)
5. Stock Options (Details 1) | 3 Months Ended | 9 Months Ended | |
Mar. 25, 2020 | Sep. 30, 2020 | Sep. 30, 2019 | |
Risk-free interest rate | 0.81% | 1.76% | |
Dividend yield | 0.00% | 0.00% | |
Expected stock price volatility | 144.40% | 144.75% | |
Expected forfeiture rate | 0.00% | 0.00% | |
Expected life | 6 years | 6 years | |
Stock options | |||
Risk-free interest rate | 2.55% | 2.41% | |
Dividend yield | 0.00% | 0.00% | |
Expected stock price volatility | 143.57% | 125.00% | |
Expected forfeiture rate | 0.00% | 0.00% | |
Expected life | 5 years 1 month 2 days | 4 years 7 months 6 days |
5. Stock Options (Details 2)
5. Stock Options (Details 2) - $ / shares | Sep. 30, 2020 | Jun. 12, 2020 | Mar. 26, 2020 |
Outstanding, ending | 83,100,000 | ||
Number of options exercisable | 79,187,500 | 7,000,000 | 22,000,000 |
December 31, 2020 | |||
Weighed average exercise price ending balance | $ 0.05 | ||
Outstanding, ending | 1,200,000 | ||
Number of options exercisable | 1,200,000 | ||
November 14, 2021 | |||
Weighed average exercise price ending balance | $ 0.07 | ||
Outstanding, ending | 750,000 | ||
Number of options exercisable | 750,000 | ||
December 31, 2022 | |||
Weighed average exercise price ending balance | $ 0.06 | ||
Outstanding, ending | 800,000 | ||
Number of options exercisable | 800,000 | ||
August 31, 2023 | |||
Weighed average exercise price ending balance | $ 0.08 | ||
Outstanding, ending | 600,000 | ||
Number of options exercisable | 600,000 | ||
November 8, 2023 | |||
Weighed average exercise price ending balance | $ 0.09 | ||
Outstanding, ending | 15,000,000 | ||
Number of options exercisable | 15,000,000 | ||
May 5, 2023 | |||
Weighed average exercise price ending balance | $ 0.13 | ||
Outstanding, ending | 1,600,000 | ||
Number of options exercisable | 1,600,000 | ||
July 14, 2024 | |||
Weighed average exercise price ending balance | $ 0.26 | ||
Outstanding, ending | 18,500,000 | ||
Number of options exercisable | 18,500,000 | ||
November 17, 2024 | |||
Weighed average exercise price ending balance | $ 0.11 | ||
Outstanding, ending | 15,000,000 | ||
Number of options exercisable | 11,250,000 | ||
March 26, 2026 | |||
Weighed average exercise price ending balance | $ 0.14 | ||
Outstanding, ending | 22,000,000 | ||
Number of options exercisable | 22,000,000 | ||
May 5, 2026 | |||
Weighed average exercise price ending balance | $ 0.11 | ||
Outstanding, ending | 650,000 | ||
Number of options exercisable | 487,500 | ||
June 11, 2026 | |||
Weighed average exercise price ending balance | $ 0.12 | ||
Outstanding, ending | 7,000,000 | ||
Number of options exercisable | 7,000,000 |
5. Stock Options (Details Narra
5. Stock Options (Details Narrative) - USD ($) | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Jun. 12, 2020 | May 06, 2020 | Mar. 26, 2020 | Dec. 31, 2019 | |
Aggregate intrinsic value | $ 458,165 | $ 458,165 | $ 1,005,350 | |||||
Fair value of share-based compensation | $ 1,458,990 | $ 342,218 | $ 6,331,290 | $ 1,167,629 | ||||
Option description | Options are exercisable at $0.11 per share for a period of six years and expire on May 5, 2026 | |||||||
Number of options exercisable | 79,187,500 | 79,187,500 | 7,000,000 | 22,000,000 | ||||
Options granted | 29,650,000 | 34,100,000 | ||||||
Stock options | ||||||||
Common stock granted | 83,100,000 | 83,100,000 | ||||||
Weighted average fair value of stock options granted per share | $ 0.12 | $ 0.07 | ||||||
Options granted | 29,650,000 | 34,100,000 | ||||||
research and development and Business development | ||||||||
Common stock granted | 650,000 |
6. Warrants (Details)
6. Warrants (Details) - $ / shares | Sep. 30, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Dec. 31, 2018 |
Warrants | ||||
Warrant outstanding, ending | 8,500,000 | 8,500,000 | 6,000,000 | 6,000,000 |
Warrant weighted average exercise price | $ 0.22 | $ 0.22 | $ 0.26 | $ 0.26 |
6. Warrants (Details 1)
6. Warrants (Details 1) - $ / shares | 9 Months Ended | |||
Sep. 30, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Dec. 31, 2018 | |
Number of Warrants | 8,500,000 | |||
Warrant Exercise Price | $ 0.22 | $ 0.22 | $ 0.26 | $ 0.26 |
Warrant One | ||||
Number of Warrants | 6,000,000 | |||
Warrant Exercise Price | $ 0.26 | |||
Expiry Date | July 14, 2024 | |||
Warrant Two | ||||
Number of Warrants | 833,333 | |||
Warrant Exercise Price | $ 0.12 | |||
Expiry Date | October 15, 2022 | |||
Warrant Three | ||||
Number of Warrants | 250,000 | |||
Warrant Exercise Price | $ 0.12 | |||
Expiry Date | October 21, 2022 | |||
Warrant Four | ||||
Number of Warrants | 116,667 | |||
Warrant Exercise Price | $ 0.12 | |||
Expiry Date | November 11, 2022 | |||
Warrant Five | ||||
Number of Warrants | 83,334 | |||
Warrant Exercise Price | $ 0.12 | |||
Expiry Date | November 12, 2022 | |||
Warrant Six | ||||
Number of Warrants | 833,333 | |||
Warrant Exercise Price | $ 0.12 | |||
Expiry Date | December 1 , 2022 | |||
Warrant Seven | ||||
Number of Warrants | 166,667 | |||
Warrant Exercise Price | $ 0.12 | |||
Expiry Date | December 18, 2022 | |||
Warrant Eight | ||||
Number of Warrants | 216,666 | |||
Warrant Exercise Price | $ 0.12 | |||
Expiry Date | December 18, 2022 |
7. Stockholders' Equity (Detail
7. Stockholders' Equity (Details Narrative) - USD ($) | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | |
Common Stock, Par Value Per Share | $ 0.0000053 | $ 0.0000053 | |
Common Stock, Shares Authorized | 400,000,000 | 400,000,000 | |
Dividends declared | $ 0 | $ 0 | |
Investors | |||
Common stock issued | 2,222,222 | 750,000 | |
Share price | $ 0.09 | $ 0.06 | |
Gross proceeds from issue of common stock | $ 200,000 | $ 45,000 | |
Investors One | |||
Common stock issued | 320,513 | ||
Gross proceeds from issue of common stock | $ 25,000 | ||
Investors One | |||
Common stock issued | 10,000,000 | ||
Share price | $ 0.078 | $ 0.05 | |
Gross proceeds from issue of common stock | $ 500,000 | ||
Investors Two | |||
Common stock issued | 3,653,077 | 2,266,667 | |
Share price | $ 0.065 | $ 0.12 | |
Gross proceeds from issue of common stock | $ 237,450 | $ 272,000 | |
Chief Financial Officer [Member] | |||
Common stock issued | 97,826 | ||
Stock options exercise | 250,000 |
8. Related Party Transactions_2
8. Related Party Transactions and Balances (Details Narrative) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Mar. 25, 2020 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | |
Share based Compensation | $ 502,795 | $ 335,197 | ||
Payment to CFO | 45,000 | 45,000 | ||
Due to related parties | $ 0 | $ 0 | ||
Risk-free interest rate | 0.81% | 1.76% | ||
Dividend yield | 0.00% | 0.00% | ||
Stock price volatility | 144.40% | 144.75% | ||
Forfeiture rate | 0.00% | 0.00% | ||
Expected life (years) | 6 years | 6 years | ||
Clarence Smith (CEO) | ||||
Share based Compensation | $ 282,844 | $ 5,704 | ||
Risk-free interest rate | 1.76% | 1.76% | ||
Dividend yield | 0.00% | 0.00% | ||
Stock price volatility | 144.40% | 144.75% | ||
Forfeiture rate | 0.00% | 0.00% | ||
Expected life (years) | 6 years | 6 years | ||
Chief Financial Officer [Member] | ||||
Office rent | $ 9,450 | $ 9,450 |
9. Commitments and Contingency
9. Commitments and Contingency (Details Narrative) - USD ($) | 3 Months Ended | 9 Months Ended |
Mar. 25, 2020 | Sep. 30, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | ||
Share-based compensation | $ 235,703 | |
Risk-free interest rate | 0.81% | 1.76% |
Dividend yield | 0.00% | 0.00% |
Stock price volatility | 144.40% | 144.75% |
Forfeiture rate | 0.00% | 0.00% |
Expected life (years) | 6 years | 6 years |