Document and Entity Information
Document and Entity Information | 12 Months Ended |
Dec. 31, 2018shares | |
Document Type | 20-F |
Amendment Flag | false |
Document Period End Date | Dec. 31, 2018 |
Trading Symbol | qwikf |
Entity Registrant Name | QWICK MEDIA INC. |
Entity Central Index Key | 0001128790 |
Current Fiscal Year End Date | --12-31 |
Entity Filer Category | Non-accelerated Filer |
Entity Common Stock, Shares Outstanding | 71,128,456 |
Entity Current Reporting Status | Yes |
Entity Voluntary Filers | No |
Entity Well Known Seasoned Issuer | No |
Document Fiscal Year Focus | 2018 |
Document Fiscal Period Focus | FY |
Entity Shell Company | false |
Entity Emerging Growth Company | false |
Entity Ex Transition Period | false |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 |
Current | ||
Cash | $ 42,973 | $ 17,206 |
Receivables | 27,374 | 12,864 |
Inventory (Note 3) | 117,230 | 128,773 |
Prepaid expenses | 39,116 | 21,911 |
Total Current Assets | 226,693 | 180,754 |
Equipment (Note 4) | 67,069 | 89,624 |
Intangible Assets (Note 5) | 67,975 | 78,718 |
Total Assets | 361,737 | 349,096 |
Current | ||
Accounts payable and accrued liabilities (Note 7) | 160,181 | 103,877 |
Due to related parties (Note 7) | 1,469,663 | 911,438 |
Current portion of capital lease obligations (Note 6) | 9,210 | 9,475 |
Total Current Liabilities | 1,639,054 | 1,024,790 |
Deferred Revenue | 3,188 | |
Capital Lease Obligations (Note 6) | 25,580 | 37,833 |
Total Liabilities | 1,664,634 | 1,065,811 |
SHAREHOLDERS’ DEFICIENCY | ||
Share Capital Authorized: 400,000,000 common shares, $0.001 par value; 100,000,000 preferred shares, $0.001 par value, and series as determined by directors. Common Stock – 71,128,456 common shares issued at December 31, 2018 and 2017 | 71,128 | 71,128 |
Preferred Stock – 9,891,800 preferred shares issued at December 31, 2018 and 2017 | 9,892 | 9,892 |
Additional Paid-in Capital | 15,262,576 | 15,226,143 |
Deficit | (16,646,493) | (16,023,878) |
Total Shareholders’ Deficiency | (1,302,897) | (716,715) |
Total Liabilities and Shareholders’ Deficiency | $ 361,737 | $ 349,096 |
CONSOLIDATED BALANCE SHEETS (PA
CONSOLIDATED BALANCE SHEETS (PARENTHETICAL) - $ / shares | Dec. 31, 2018 | Dec. 31, 2017 |
Common Stock, Shares Authorized | 400,000,000 | 400,000,000 |
Common Stock, Par Value Per Share | $ 0.001 | $ 0.001 |
Preferred Stock, Shares Authorized | 100,000,000 | 100,000,000 |
Preferred Stock, Par Value Per Share | $ 0.001 | $ 0.001 |
Common Stock, Shares, Issued | 71,128,456 | 71,128,456 |
Preferred Stock, Shares Issued | 9,891,800 | 9,891,800 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Revenue | $ 154,313 | $ 135,817 | $ 654,916 |
Expenses | |||
Advertising and promotion | 36,061 | 36,479 | 19,877 |
Amortization | 31,662 | 23,306 | 24,085 |
Consulting fees (Notes 7 and 8) | 106,537 | 320,203 | 183,652 |
Filing fees | 24,611 | 11,947 | 14,694 |
Foreign exchange (gain) loss | (113,327) | 39,912 | 140,015 |
Interest and bank charges | 6,870 | 6,349 | 5,536 |
Inventory costs | 60,266 | 62,631 | 383,282 |
Management fees (Note 7) | 21,225 | 23,103 | 41,514 |
Office and administrative | 70,359 | 83,454 | 106,485 |
Professional fees | 74,766 | 38,664 | 30,899 |
Rent | 85,331 | 116,522 | 127,070 |
Salaries, wages and benefits (Note 7) | 383,741 | 469,851 | 568,310 |
Travel | 14,981 | 7,370 | 13,395 |
Total Expenses | 803,083 | 1,239,791 | 1,658,814 |
Operating Loss | (648,770) | (1,103,974) | (1,003,898) |
Other Income | |||
Interest income | 88 | 72 | 162 |
Gain on disposal of equipment | 26,067 | ||
Reversal of accrued dividends payable (Note 9) | 734,228 | ||
Net Loss For The Year | $ (622,615) | $ (1,103,902) | $ (269,508) |
Basic And Diluted Loss Per Common Share (in dollars per share) | $ (0.01) | $ (0.02) | $ 0 |
Weighted Average Number Of Common Shares Outstanding (in shares) | 71,128,456 | 71,128,456 | 71,128,456 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Cash Flows (Used In) Provided By: | |||
Net loss for the year | $ (622,615) | $ (1,103,902) | $ (269,508) |
Adjustments to reconcile net loss to net cash used in operating activities: | |||
Amortization | 31,662 | 23,306 | 24,085 |
Share-based compensation | 36,433 | 250,819 | 64,403 |
Inventory obsolescence | 13,561 | 28,243 | 22,453 |
Gain on disposal of equipment | (26,067) | ||
Changes in operating assets and liabilities: | |||
Receivables | (14,510) | 21,627 | 137,539 |
Prepaid expenses | (17,205) | 7,891 | 9,396 |
Inventory | (2,018) | (10,618) | (67,842) |
Deferred revenue | (3,188) | 3,188 | |
Due to related parties | 311,233 | ||
Accrued dividends payable | (734,228) | ||
Accounts payable and accrued liabilities | 56,304 | (79,268) | (24,454) |
Net cash used in operating activities | (547,643) | (858,714) | (526,923) |
Investing Activities | |||
Purchase of equipment | (14,797) | (22,009) | (11,402) |
Proceeds from disposition of equipment | 42,500 | ||
Net cash provided by (used in) investing activities | 27,703 | (22,009) | (11,402) |
Financing Activities | |||
Proceeds from loans payable to related parties | 558,225 | 847,630 | 534,294 |
Principal portion of lease payments | (12,518) | (5,831) | |
Net cash provided by financing activities | 545,707 | 841,799 | 534,294 |
Net Increase (Decrease) in Cash | 25,767 | (38,924) | (4,031) |
Cash, Beginning of Year | 17,206 | 56,130 | 60,161 |
Cash, End of Year | $ 42,973 | 17,206 | 56,130 |
Non-cash investing and financing activities | |||
Acquisition of assets under capital leases | $ 53,139 | ||
Issuance of preferred shares to settle related party debt | $ 7,863,855 |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' (DEFICIENCY) EQUITY - USD ($) | Common Shares [Member] | Preferred Stock [Member] | Additional Paid-in Capital [Member] | Deficit [Member] | Total |
Beginning Balance at Dec. 31, 2015 | $ 71,128 | $ 0 | $ 5,029,013 | $ (14,650,468) | $ (9,550,327) |
Beginning Balance (Shares) at Dec. 31, 2015 | 71,128,456 | 2,027,945 | |||
Reclassification of preferred shares | $ 2,028 | 2,025,917 | 2,027,945 | ||
Issuance of preferred shares to settle related party debt | $ 7,864 | 7,855,991 | 7,863,855 | ||
Issuance of preferred shares to settle related party debt (Shares) | 7,863,855 | ||||
Share-based compensation | 64,403 | 64,403 | |||
Net loss for the year | (269,508) | (269,508) | |||
Ending Balance at Dec. 31, 2016 | $ 71,128 | $ 9,892 | 14,975,324 | (14,919,976) | 136,368 |
Ending Balance (Shares) at Dec. 31, 2016 | 71,128,456 | 9,891,800 | |||
Share-based compensation | 250,819 | 250,819 | |||
Net loss for the year | (1,103,902) | (1,103,902) | |||
Ending Balance at Dec. 31, 2017 | $ 71,128 | $ 9,892 | 15,226,143 | (16,023,878) | (716,715) |
Ending Balance (Shares) at Dec. 31, 2017 | 71,128,456 | 9,891,800 | |||
Share-based compensation | 36,433 | 36,433 | |||
Net loss for the year | (622,615) | (622,615) | |||
Ending Balance at Dec. 31, 2018 | $ 71,128 | $ 9,892 | $ 15,262,576 | $ (16,646,493) | $ (1,302,897) |
Ending Balance (Shares) at Dec. 31, 2018 | 71,128,456 | 9,891,800 |
NATURE OF OPERATIONS AND GOING
NATURE OF OPERATIONS AND GOING CONCERN | 12 Months Ended |
Dec. 31, 2018 | |
NATURE OF OPERATIONS AND GOING CONCERN [Text Block] | 1. NATURE OF OPERATIONS AND GOING CONCERN a) Organization Qwick Media Inc. (the “Company”) is governed by the corporate laws of the Cayman Islands. It is currently a reporting issuer in the Provinces of British Columbia and Ontario, Canada. Principal executive offices are located in Vancouver, British Columbia, Canada. The registered office is in the Cayman Islands. The Company was incorporated on October 5, 2000 under the laws of the State of Nevada, and has since re-domiciled to the Cayman Islands and become a foreign private issuer with the United States Securities and Exchange Commission (the “SEC”). The Company is in the business of developing interactive proprietary software, intellectual property and hardware. The Company earns its revenue from the sale of digital media kiosks, as well as the performance of various software consulting and implementation services, mainly in Canada and the U.S. b) Going Concern The accompanying consolidated financial statements have been prepared assuming the Company will continue as a going concern. As shown in the accompanying consolidated financial statements, the Company has incurred accumulated losses of $16,646,493 as at December 31, 2018 (2017 - $16,023,878). The future of the Company is dependent upon its ability to obtain adequate financing and upon future profitable operations. Management has plans to seek additional capital financing through private placement and a public offering of the Company’s common shares and from the issuance of promissory notes. These factors raise substantial doubt regarding the Company’s ability to continue as a going concern. The consolidated financial statements do not include any adjustments relating to the recoverability and classification of recorded assets, or the amounts of and classification of liabilities that might be necessary in the event the Company cannot continue in existence. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2018 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Text Block] | 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The consolidated financial statements of the Company have been prepared in accordance with generally accepted accounting principles in the United States (“GAAP”), and are expressed in US dollars. These consolidated financial statements include the accounts of the Company and the accounts of the Company’s wholly owned subsidiaries, Qeyos Ad Systems Inc. (“Qeyos”), incorporated in British Columbia, Canada, and Wuxi Xun Fu Information Technology Co., Ltd. (“Wuxi”), incorporated in the People’s Republic of China. The Company’s fiscal year-end is December 31. For all periods presented, all significant inter-company accounts and transactions have been eliminated in the consolidated financial statements. Because a precise determination of many assets and liabilities is dependent upon future events, the preparation of financial statements for a period necessarily involves the use of estimates which have been made using careful judgement. The consolidated financial statements have, in management’s opinion, been properly prepared within reasonable limits of materiality and within the framework of the significant accounting policies summarized below: a) Cash and Cash Equivalents Cash consists of cash on deposit with high quality major financial institutions. The carrying amounts approximated fair market value due to the liquidity of these deposits. For purposes of the balance sheets and statements of cash flows, the Company considers all highly liquid debt instruments purchased with a maturity of three months or less to be cash equivalents. The Company had no cash equivalents at December 31, 2018 and 2017. b) Use of Estimates and Assumptions The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses for the reporting period. Management evaluates estimates and judgments on an ongoing basis. Actual results could differ from these estimates. The significant areas requiring management’s estimates and assumptions include the fair value of shares issued to settle debt, share-based compensation, valuation of receivables and inventory, estimated life, amortization rates and impairment of long-lived assets, valuation allowance for income tax purposes, and fair value measurement of financial instruments. c) Revenue Recognition The Company earns its revenue from the sale of digital kiosks, as well as the performance of various software consulting and implementation services, mainly in the Canada and the US. Effective January 1, 2018, the Company adopted the new revenue standard, ASC 606, Revenue from Contracts with Customers, using the modified retrospective transition approach. Adoption of this standard had no effect on the Company’s reported revenues. In accordance with ASC 606, the Company recognizes revenue when its customer obtains control of promised goods or services, in an amount that reflects the consideration which the Company expects to be entitled in exchange for those goods or services. To determine revenue recognition for arrangements that the Company determines are within the scope of ASC 606, it performs the following five steps: (i) identify the contract(s) with a customer; (ii) identify the performance obligations in the contract; (iii) determine the transaction price; (iv) allocate the transaction price to the performance obligations in the contract; and (v) recognize revenue when (or as) the entity satisfies a performance obligation. The Company applies the five-step model to contracts when it determines that it is probable it will collect substantially all of the consideration it is entitled to in exchange for the goods or services it transfers to the customer. At contract inception, once the contract is determined to be within the scope of ASC 606, the Company assesses the goods or services promised within each contract and determines those that are performance obligations, and assesses whether each promised good or service is distinct. The Company then recognizes as revenue the amount of the transaction price, after consideration of variability and constraints, if any, that is allocated to the respective performance obligation when the performance obligation is satisfied. d) Software Development Costs The Company accounts for software development costs in accordance with Accounting Standards Codification (“ASC”) 985-20, Software - Cost of Software to Be Sold, Leased To December 31, 2018, software development costs, comprised of salaries, wages and benefits, and direct overhead, have been charged to operations as the research and development activities for other components of the product and processes have not been completed. e) Inventory Inventory is recorded at the lower of cost or market, with cost being determined on the weighted average method. When required, a provision is made to reduce excess and obsolete inventory to estimated net realizable value. The net realizable value of inventory is generally considered to be the selling price in the ordinary course of business, less the estimated costs of completion and estimated costs to make the sale. Inventory consists of computers, monitors, printers, parts and enclosures, and general inventory. f) Equipment and Amortization Equipment is recorded at cost and amortized using the declining-balance and straight-line method at rates determined to estimate the useful lives of the assets. The annual rates used in calculating amortization are as follows: Computer hardware 30% declining-balance Computer software 50% declining-balance Office furniture 20% declining-balance Automobile 20% declining-balance Equipment 30% declining-balance Shop equipment 30% declining balance Shop equipment under capital leases Straight-line over 60 months g) Intangible Assets Patents, trademarks and other rights have been capitalized in accordance with ASC 350-40, Intangibles – Goodwill and Other – Internal-Use Software. If the total of the expected undiscounted future cash flows is less than the carrying amount of the asset, a loss is recognized for the excess of the carrying value over the fair value of the asset. h) Leases Lease agreements are evaluated to determine whether they are capital or operating leases in accordance with ASC 840, Leases Capital leases are capitalized at the lower of the net present value of the total amount payable under the leasing agreement (excluding finance charges) or the fair market value of the leased asset. Capital lease assets are amortized on a straight-line basis, over a period consistent with the Company’s normal amortization policy for tangible fixed assets, but not exceeding the lease term. Interest charges are expensed over the period of the leases in relation to the carrying value of the capital lease obligations. i) Foreign Currency Translation The Company’s functional currency is the U.S. dollar. Transactions in foreign currency are translated in accordance with ASC Topic 830, Foreign Currency Matters i) monetary items at the exchange rate prevailing at the balance sheet date; ii) non-monetary items at the historical exchange rate; iii) revenue and expense at the average exchange rate in effect during the applicable accounting period. Gains and losses on foreign currency transactions are reported in the statements of operations. j) Basic and Diluted Loss Per Share The Company computes loss per share in accordance with ASC 260, Earnings Per Share k) Financial Instruments In January 2016, the FASB issued ASU 2016-01, Financial Instruments—Overall (ASC 825): Recognition and Measurement of Financial Assets and Financial Liabilities (ASU 2016-01), which requires that most equity investments be measured at fair value, with subsequent changes in fair value recognized in net income. The ASU also impacts financial liabilities under the fair value option and the presentation and disclosure requirements for financial instruments. In addition, the FASB clarified guidance related to the valuation allowance assessment when recognizing deferred tax assets resulting from unrealized losses on available-for-sale debt securities. Entities have to assess the realizability of such deferred tax assets incombination with the entities’ other deferred tax assets. ASU 2016-01 is effective for fiscal years beginning after December 15, 2017 and for interim periods within those fiscal years. The Company adopted this guidance effective January 1, 2018 with no material impact on its consolidated financial statements. ASC 820, Fair Value Measurements and Disclosures Financial Instruments These tiers are: • Level 1 – defined as observable inputs such as quoted prices in active markets; • Level 2 – defined as inputs other than quoted prices in active markets that are either directly or indirectly observable; and • Level 3 – defined as unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions. Cash consists of cash on deposit with a high quality major financial institution. The carrying cost approximates fair value due to the liquidity of these deposits. The carrying amounts of other financial assets and liabilities, comprising receivables, loans receivable, accounts payable and accrued liabilities, and due to and loans payable to related parties, were a reasonable approximation of their fair value. l) Income Taxes The Company has adopted ASC 740, Income Taxes m) Asset Impairment Long-lived assets are tested for recoverability whenever events or changes in circumstances indicate the carrying amount may not be recoverable, pursuant to guidance established in ASC 360-50, Impairment or Disposal of Long-lived Assets n) Comprehensive Loss ASC 220, Comprehensive Income o) Equity Instruments In situations where common shares are issued and the fair value of the goods or services received is not readily determinable, the fair value of the common shares is used to measure and record the transaction. The fair value of the common shares issued in exchange for the receipt of goods and services is based on the share price as of the earliest of: i) the date at which the counterparty’s performance is complete; ii) the date at which a commitment for performance by the counterparty to earn the common shares is reached; or iii) the date at which the common shares are issued if they are fully vested and non-forfeitable at that date. The Company has a share-based compensation plan which is described more fully in Note 8. The Company measures the compensation cost of stock options and other share-based awards to employees and directors at fair value at the grant date and recognizes compensation expense over the requisite service period for awards expected to vest. Except for transactions with employees and directors, all transactions in which goods or services are the consideration received for the issuance of equity instruments are accounted for based on the fair value of the consideration received, or the fair value of the equity instruments issued, whichever is more reliably measurable. Additionally, the Company has determined that the dates used to value the transaction are either: i) The date at which a commitment for performance by the counter party to earn the equity instruments is established; or ii) The date at which the counter party’s performance is complete. p) Recent Accounting Pronouncements The Company has implemented all new accounting pronouncements that are in effect. These pronouncements did not have any material impact on the financial statements unless otherwise disclosed, and the Company does not believe that there are any other new accounting pronouncements that have been issued that might have a material impact on its financial position or results of operations. |
INVENTORY
INVENTORY | 12 Months Ended |
Dec. 31, 2018 | |
INVENTORY [Text Block] | 3. INVENTORY 2018 2017 Computers $ 9,653 $ 9,698 Monitors 29,921 31,779 Printers 3,551 2,175 Charging stations 22,715 24,968 Parts and enclosures 48,775 56,481 General 2,615 3,672 $ 117,230 $ 128,773 During the year, the Company recorded inventory obsolescence in the amount of $13,561 (2017 - $28,243; 2016 - $22,453). |
EQUIPMENT
EQUIPMENT | 12 Months Ended |
Dec. 31, 2018 | |
EQUIPMENT [Text Block] | 4. EQUIPMENT 2018 Accumulated Net Book Cost Amortization Value Computer hardware $ 38,713 $ 37,619 $ 1,094 Computer software 1,950 1,950 – Office furniture 11,828 7,634 4,194 Equipment 52,932 42,741 10,191 Shop equipment 22,009 7,503 14,506 Shop equipment under capital leases 53,139 16,055 37,084 $ 180,571 $ 113,502 $ 67,069 2017 Accumulated Net Book Cost Amortization Value Computer hardware $ 38,713 $ 37,115 $ 1,598 Computer software 1,950 1,950 – Office furniture 11,828 6,745 5,083 Automobile 8,669 3,812 4,857 Equipment 52,395 42,743 9,652 Shop equipment 22,009 1,287 20,722 Shop equipment under capital leases 53,139 5,427 47,712 $ 188,703 $ 99,079 $ 89,624 |
INTANGIBLE ASSETS
INTANGIBLE ASSETS | 12 Months Ended |
Dec. 31, 2018 | |
INTANGIBLE ASSETS [Text Block] | 5. INTANGIBLE ASSETS 2018 Accumulated Net Book Cost Amortization Value Trademarks $ 78,214 $ 28,736 $ 49,478 Patents 21,818 8,000 13,818 Intellectual property 7,388 2,709 4,679 $ 107,420 $ 39,445 $ 67,975 2017 Accumulated Net Book Cost Amortization Value Trademarks $ 78,214 $ 20,915 $ 57,299 Patents 21,818 5,818 16,000 Intellectual property 7,388 1,969 5,419 $ 107,420 $ 28,702 $ 78,718 |
CAPITAL LEASE OBLIGATIONS
CAPITAL LEASE OBLIGATIONS | 12 Months Ended |
Dec. 31, 2018 | |
CAPITAL LEASE OBLIGATIONS [Text Block] | 6. CAPITAL LEASE OBLIGATIONS The Company leases shop equipment under capital leases at an effective annual interest rate of 5.56% over a period of 60 months ending in mid-2022. At December 31, 2018, $34,790 (2017 – $47,308) were owed on these leases. During the year ended December 31, 2018, $12,518 (2017 – $4,684) in principal payments on the leases were made. Future lease payments total $34,790 consisting of $9,210 due in one year and $25,580 due after one year. The leased shop equipment are amortized over 5 years on a straight-line basis. Included in Equipment (Note 4) are shop equipment under capital leases of $53,139 (2017 – $53,139) with a carrying value at December 31, 2018 of $37,084 (2017 – $47,712) after accumulated amortization of $16,055 (2017 – $5,427). |
RELATED PARTY TRANSACTIONS AND
RELATED PARTY TRANSACTIONS AND AMOUNTS OWING | 12 Months Ended |
Dec. 31, 2018 | |
RELATED PARTY TRANSACTIONS AND AMOUNTS OWING [Text Block] | 7. RELATED PARTY TRANSACTIONS AND AMOUNTS OWING For the year ended December 31, 2018, the Company carried out a number of transactions with related parties in the normal course of business. These transactions were recorded at their exchange amount, which is the amount of consideration established and agreed to by the related parties. The following are related party transactions and amounts owing at December 31, 2018 that are not otherwise disclosed elsewhere: a) For the year ended December 31, 2018, the Company paid management fees of $21,225 (2017 – $23,103; 2016 – $41,514) to companies controlled by former officers and directors; and salaries of $Nil (2017 – $57,758; 2016 – $135,864) to an officer of the Company and spouse. b) The Company recorded share-based compensation of $27,148 (2017 – $191,082; 2016 – $64,403) as consulting fees and salaries paid to directors and officers for the year ended December 31, 2018. d) As of December 31, 2018, the Company recorded in accounts payable and accrued liabilities: (i) $14,557 (2017 – $7,533) owed to a company controlled by a former director; (ii) $19,241 (2017 – $6,277) owed to a company controlled by a former officer; and (iii) $3,635 (2017 – $6,344) owed to a former director of the Company. The amounts owed are unsecured, non-interest bearing and due on demand. e) As of December 31, 2018, $1,469,663 (2017 – $986,726) had been advanced by the President and a director of the Company; The advances were unsecured, non-interest bearing and due on demand. f) On December 30, 2016, the Company converted $7,863,855 of amounts owed to related parties into 7,863,855 Class A Preferred Shares at a price of $1.00 per Class A Preferred Share. |
STOCK OPTIONS
STOCK OPTIONS | 12 Months Ended |
Dec. 31, 2018 | |
STOCK OPTIONS [Text Block] | 8. STOCK OPTIONS The Company adopted a Stock Option Plan under which the Company can grant up to 6,620,230 common shares to its officers, directors, employees and consultants. The fair values of stock options granted are estimated at the date of the grant using the Black-Scholes option-pricing model. The Company did not grant any stock options during the year ended December 31, 2016. On June 7, 2017, the Company granted 4,630,000 options to directors, officers, and third parties of the Company, of which each option is exerciseable for a period of 5 years at a price of $0.07. These options will vest as follows: 1,543,333 on June 7, 2017, 1,543,333 on June 7, 2018, and 1,543,333 on June 7, 2019. During the year ended December 31, 2018, the Company recorded share-based compensation of $36,433 (2017 – $250,819, 2016 - $64,403) as consulting expenses and salaries related to the vesting and issuance of stock options. The fair value assumptions used were as follows: 2018 2017 2016 Expected dividend yield N/A 0% N/A Risk-free interest rate N/A 1.74% N/A Expected volatility N/A 140% N/A Expected option life (in years) N/A 5 N/A The following table summarizes the continuity of the Company’s stock options: Weighted- Weighted Average Average Remaining Number of Exercise Contractual Options Price Term (years) Outstanding, December 31, 2016 1,900,000 $0.20 3.20 Granted in 2017 4,630,000 $0.07 3.15 Outstanding, December 31, 2017 and 2018 6,530,000 $0.11 2.77 Exercisable, December 31, 2018 4,986,666 0.12 2.57 A summary of the status of the Company’s non-vested options and changes are presented below: Weighted Average Number of Grant Date Options Fair Value Non-vested at December 31, 2016 350,000 $0.16 Granted 4,630,000 $0.07 Vested (1,893,333) $0.07 Non-vested at December 31, 2017 3,086,667 $0.07 Vested (1,543,333) $0.18 Non-vested at December 31, 2018 1,543,334 $0.18 As at December 31, 2018, there was $33,883 (2017 – $70,551) in total unrecognized compensation cost related to non-vested stock options. As at December 31, 2018, the following stock options were outstanding: Number of Options Exercise Price Expiry Date 600,000 $0.20 April 30, 2019 300,000 $0.20 July 31, 2020 1,000,000 $0.20 September 4, 2020 4,630,000 $0.07 June 7, 2022 6,530,000 |
REDEEMABLE PREFERRED SHARES
REDEEMABLE PREFERRED SHARES | 12 Months Ended |
Dec. 31, 2018 | |
REDEEMABLE PREFERRED SHARES [Text Block] | 9. REDEEMABLE PREFERRED SHARES On November 15, 2011, the Company created one series of the 100,000,000 preferred shares it is authorized to issue, consisting of 25,000,000 shares, to be designated as Class A Preferred Shares. During the year ended December 31, 2011, the Company completed a private placement with a company owned by the Company's President and Chief Executive Officer, consisting of the issuance of 1,000,000 Class A Preferred Shares at a price of $1.00 per Class A Preferred Share for gross proceeds of $1,000,000, and converted the principal amount of a debenture and accrued interest thereon to the related party, into an aggregate of 1,027,945 Class A Preferred Shares, at a conversion price of $1.00 per Class A Preferred Share. As at December 31, 2015, the holder of the Class A Preferred Shares agreed to not exercise the retractable rights to have the Company redeem the Class A Preferred Shares, for the next two years. On December 30, 2016, the Company amended the rights and restrictions of the Class A Preferred Shares to remove the redemption rights of the holder and revise the conversion rights. The principal terms of the Class A Preferred Shares are as follows: Voting rights Dividend rights Conversion rights Redemption rights The Company had originally classified the Class A Preferred Shares as a liability because they are redeemable beyond the control of the Company. As the modification of the Class A Preferred Shares added a substantive conversion option and removed the retractability feature, the Company has accounted for the modification as an extinguishment of the previous preferred stock and the issuance of new preferred stock. The Company assessed the revised Class A Preferred Shares and concluded that they represented an equity host contract. The Company also concluded that conversion feature was clearly and closely related to the host contract and that the conversion feature was not beneficial. The Company also assessed the redemption option and concluded that it did not meet the definition of a derivative. Finally, the Company concluded that as the Class A Preferred Shares were no longer redeemable at the option of the holder that they should be classified as permanent equity. The Company has determined that there was no difference between the fair value of the outstanding preferred shares and the modified preferred shares. Upon the modification, the Company has reclassified the outstanding preferred shares from debt to permanent equity. On December 30, 2016, the Company converted $7,863,855 of amounts owed to related parties into 7,863,855 Class A Preferred Shares at a price of $1.00 per Class A Preferred Share. Effective December 30, 2016, accrued dividends payable to a director and his related holding company were waived. The waiver was accepted by the Company’s Board of Directors as of December 30, 2016 such that the accrued dividends in the amount of $734,228 are discharged from the Company’s debt obligations. As such dividends were expensed, the Company has recaptured an equivalent amount of other income in the amount of $734,228 effective December 30, 2016. |
COMMITMENTS AND CONTRACTUAL OBL
COMMITMENTS AND CONTRACTUAL OBLIGATIONS | 12 Months Ended |
Dec. 31, 2018 | |
COMMITMENTS AND CONTRACTUAL OBLIGATIONS [Text Block] | 10. COMMITMENTS AND CONTRACTUAL OBLIGATIONS The Company had no significant commitments or contractual obligations with any parties respecting executive compensation, consulting arrangements, or other matters other than disclosed below. Management services provided are on a month-to-month basis. The Company has entered into leases for the provision of facility space and capital assets until May 31, 2021 and July 31, 2022. The Company’s future minimum lease payments for its leases are as follows: Fiscal year ending December 31, 2019 $ 69,091 (CDN $ 94,257) Fiscal year ending December 31, 2020 61,849 (CDN $ 84,378) Fiscal year ending December 31, 2021 26,817 (CDN $ 36,585) Fiscal year ending December 31, 2022 5,248 (CDN $ 7,160) Total $ 163,005 (CDN$222,380) |
FINANCIAL INSTRUMENTS AND RISK
FINANCIAL INSTRUMENTS AND RISK MANAGEMENT | 12 Months Ended |
Dec. 31, 2018 | |
FINANCIAL INSTRUMENTS AND RISK MANAGEMENT [Text Block] | 11. FINANCIAL INSTRUMENTS AND RISK MANAGEMENT The following table presents information about the Company’s financial instruments that have been measured at fair value as of December 31, 2018, and indicates the fair value hierarchy of the valuation inputs utilized to determine such fair values: DECEMBER 31, 2018 FAIR VALUE TOTAL INPUT HELD-FOR- CARRYING FAIR LEVEL TRADING VALUE VALUE Financial assets Cash 1 $ 42,973 $ 42,973 $ 42,973 DECEMBER 31, 2017 FAIR VALUE TOTAL INPUT HELD-FOR- CARRYING FAIR LEVEL TRADING VALUE VALUE Financial assets Cash 1 $ 17,206 $ 17,206 $ 17,206 Due to the nature of cash, receivables and accounts payable, the fair value of these instruments approximated their carrying value. a) Credit risk Credit risk is the risk of potential loss to the Company if the counterparty to a financial instrument fails to meet its contractual obligations. The Company is not exposed to significant credit risk as at December 31, 2018 and 2017. b) Translation risk The Company’s functional currency is the US dollar. The Company translates transactions in foreign currencies into US currency using rates on the date of the transactions. The Company translates foreign currency balances at period end using the rate in effect at the period end date. Translation risk is considered minimal. c) Interest rate risk The Company is not exposed to significant interest rate risk due to the short-term maturity of its monetary current assets and liabilities. d) Liquidity risk Liquidity risk is the risk that the Company will encounter difficulty in satisfying its financial obligations as they become due. The Company manages its liquidity risk by forecasting cash flows from operations and anticipated investing and financing activities. At December 31, 2018, the Company had accounts payable of $45,228 (2017 - $37,825), which are due within 30 days or less. As at December 31, 2018, accrued liabilities consist of accrued accounting fees of $21,990 (2017 - $23,000). |
SEGMENTED INFORMATION
SEGMENTED INFORMATION | 12 Months Ended |
Dec. 31, 2018 | |
SEGMENTED INFORMATION [Text Block] | 12. SEGMENTED INFORMATION The Company’s business is considered as operating in one segment, being the development of software and hardware for use in digital media kiosks. The Company derives a substantial amount of its revenue from six customers (2017 – two; 2016 – two), which contributed approximately 86% (2017 - 50%; 2016 - 78%) of revenue for the year ended December 31, 2018. |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2018 | |
INCOME TAXES [Text Block] | 13. INCOME TAXES The provision for income taxes differs from the result which would be obtained by applying the statutory income tax rate of 27% (2017 - 26%; 2016 – 26%) to income before income taxes. The difference results from the following items: 2018 2017 2016 Computed expected benefit income taxes $ (344,000 ) $ (216,000 ) $ (238,000 ) Increase in valuation allowance 344,000 216,000 238,000 $ $ – $ – Significant components of the Company’s deferred income tax assets are as follows: 2018 2017 Deferred income tax asset $ 4,395,000 $ 4,051,000 Valuation allowance (4,395,000 ) (4,051,000 ) $ – $ – The Company has net operating losses of approximately $16,276,000 (2017 - $15,580,000), which, if unutilized, will expire through to 2038. Future tax benefits, which may arise as a result of these losses, have not been recognized in these consolidated financial statements and have been offset by a valuation allowance. The Company and its subsidiaries file income tax returns in Canada. These tax returns are subject to examination by local taxation authorities provided the tax years remain open to audit under the relevant statutes of limitations. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2018 | |
Cash and Cash Equivalents [Policy Text Block] | a) Cash and Cash Equivalents Cash consists of cash on deposit with high quality major financial institutions. The carrying amounts approximated fair market value due to the liquidity of these deposits. For purposes of the balance sheets and statements of cash flows, the Company considers all highly liquid debt instruments purchased with a maturity of three months or less to be cash equivalents. The Company had no cash equivalents at December 31, 2018 and 2017. |
Use of Estimates and Assumptions [Policy Text Block] | b) Use of Estimates and Assumptions The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses for the reporting period. Management evaluates estimates and judgments on an ongoing basis. Actual results could differ from these estimates. The significant areas requiring management’s estimates and assumptions include the fair value of shares issued to settle debt, share-based compensation, valuation of receivables and inventory, estimated life, amortization rates and impairment of long-lived assets, valuation allowance for income tax purposes, and fair value measurement of financial instruments. |
Revenue Recognition [Policy Text Block] | c) Revenue Recognition The Company earns its revenue from the sale of digital kiosks, as well as the performance of various software consulting and implementation services, mainly in the Canada and the US. Effective January 1, 2018, the Company adopted the new revenue standard, ASC 606, Revenue from Contracts with Customers, using the modified retrospective transition approach. Adoption of this standard had no effect on the Company’s reported revenues. In accordance with ASC 606, the Company recognizes revenue when its customer obtains control of promised goods or services, in an amount that reflects the consideration which the Company expects to be entitled in exchange for those goods or services. To determine revenue recognition for arrangements that the Company determines are within the scope of ASC 606, it performs the following five steps: (i) identify the contract(s) with a customer; (ii) identify the performance obligations in the contract; (iii) determine the transaction price; (iv) allocate the transaction price to the performance obligations in the contract; and (v) recognize revenue when (or as) the entity satisfies a performance obligation. The Company applies the five-step model to contracts when it determines that it is probable it will collect substantially all of the consideration it is entitled to in exchange for the goods or services it transfers to the customer. At contract inception, once the contract is determined to be within the scope of ASC 606, the Company assesses the goods or services promised within each contract and determines those that are performance obligations, and assesses whether each promised good or service is distinct. The Company then recognizes as revenue the amount of the transaction price, after consideration of variability and constraints, if any, that is allocated to the respective performance obligation when the performance obligation is satisfied. |
Software Development Costs [Policy Text Block] | d) Software Development Costs The Company accounts for software development costs in accordance with Accounting Standards Codification (“ASC”) 985-20, Software - Cost of Software to Be Sold, Leased To December 31, 2018, software development costs, comprised of salaries, wages and benefits, and direct overhead, have been charged to operations as the research and development activities for other components of the product and processes have not been completed |
Inventory [Policy Text Block] | e) Inventory Inventory is recorded at the lower of cost or market, with cost being determined on the weighted average method. When required, a provision is made to reduce excess and obsolete inventory to estimated net realizable value. The net realizable value of inventory is generally considered to be the selling price in the ordinary course of business, less the estimated costs of completion and estimated costs to make the sale. Inventory consists of computers, monitors, printers, parts and enclosures, and general inventory. |
Equipment and Amortization [Policy Text Block] | f) Equipment and Amortization Equipment is recorded at cost and amortized using the declining-balance and straight-line method at rates determined to estimate the useful lives of the assets. The annual rates used in calculating amortization are as follows: Computer hardware 30% declining-balance Computer software 50% declining-balance Office furniture 20% declining-balance Automobile 20% declining-balance Equipment 30% declining-balance Shop equipment 30% declining balance Shop equipment under capital leases Straight-line over 60 months |
Intangible Assets [Policy Text Block] | g) Intangible Assets Patents, trademarks and other rights have been capitalized in accordance with ASC 350-40, Intangibles – Goodwill and Other – Internal-Use Software. If the total of the expected undiscounted future cash flows is less than the carrying amount of the asset, a loss is recognized for the excess of the carrying value over the fair value of the asset. |
Leases [Policy Text Block] | h) Leases Lease agreements are evaluated to determine whether they are capital or operating leases in accordance with ASC 840, Leases Capital leases are capitalized at the lower of the net present value of the total amount payable under the leasing agreement (excluding finance charges) or the fair market value of the leased asset. Capital lease assets are amortized on a straight-line basis, over a period consistent with the Company’s normal amortization policy for tangible fixed assets, but not exceeding the lease term. Interest charges are expensed over the period of the leases in relation to the carrying value of the capital lease obligations. |
Foreign Currency Translation | i) Foreign Currency Translation The Company’s functional currency is the U.S. dollar. Transactions in foreign currency are translated in accordance with ASC Topic 830, Foreign Currency Matters i) monetary items at the exchange rate prevailing at the balance sheet date; ii) non-monetary items at the historical exchange rate; iii) revenue and expense at the average exchange rate in effect during the applicable accounting period. Gains and losses on foreign currency transactions are reported in the statements of operations. |
Basic and Diluted Loss Per Share [Policy Text Block] | j) Basic and Diluted Loss Per Share The Company computes loss per share in accordance with ASC 260, Earnings Per Share |
Financial Instruments [Policy Text Block] | k) Financial Instruments In January 2016, the FASB issued ASU 2016-01, Financial Instruments—Overall (ASC 825): Recognition and Measurement of Financial Assets and Financial Liabilities (ASU 2016-01), which requires that most equity investments be measured at fair value, with subsequent changes in fair value recognized in net income. The ASU also impacts financial liabilities under the fair value option and the presentation and disclosure requirements for financial instruments. In addition, the FASB clarified guidance related to the valuation allowance assessment when recognizing deferred tax assets resulting from unrealized losses on available-for-sale debt securities. Entities have to assess the realizability of such deferred tax assets incombination with the entities’ other deferred tax assets. ASU 2016-01 is effective for fiscal years beginning after December 15, 2017 and for interim periods within those fiscal years. The Company adopted this guidance effective January 1, 2018 with no material impact on its consolidated financial statements. ASC 820, Fair Value Measurements and Disclosures Financial Instruments These tiers are: • Level 1 – defined as observable inputs such as quoted prices in active markets; • Level 2 – defined as inputs other than quoted prices in active markets that are either directly or indirectly observable; and • Level 3 – defined as unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions. Cash consists of cash on deposit with a high quality major financial institution. The carrying cost approximates fair value due to the liquidity of these deposits. The carrying amounts of other financial assets and liabilities, comprising receivables, loans receivable, accounts payable and accrued liabilities, and due to and loans payable to related parties, were a reasonable approximation of their fair value. |
Income Taxes [Policy Text Block] | l) Income Taxes The Company has adopted ASC 740, Income Taxes |
Asset Impairment [Policy Text Block] | m) Asset Impairment Long-lived assets are tested for recoverability whenever events or changes in circumstances indicate the carrying amount may not be recoverable, pursuant to guidance established in ASC 360-50, Impairment or Disposal of Long-lived Assets |
Comprehensive Loss [Policy Text Block] | n) Comprehensive Loss ASC 220, Comprehensive Income |
Equity Instruments [Policy Text Block] | o) Equity Instruments In situations where common shares are issued and the fair value of the goods or services received is not readily determinable, the fair value of the common shares is used to measure and record the transaction. The fair value of the common shares issued in exchange for the receipt of goods and services is based on the share price as of the earliest of: i) the date at which the counterparty’s performance is complete; ii) the date at which a commitment for performance by the counterparty to earn the common shares is reached; or iii) the date at which the common shares are issued if they are fully vested and non-forfeitable at that date. The Company has a share-based compensation plan which is described more fully in Note 8. The Company measures the compensation cost of stock options and other share-based awards to employees and directors at fair value at the grant date and recognizes compensation expense over the requisite service period for awards expected to vest. Except for transactions with employees and directors, all transactions in which goods or services are the consideration received for the issuance of equity instruments are accounted for based on the fair value of the consideration received, or the fair value of the equity instruments issued, whichever is more reliably measurable. Additionally, the Company has determined that the dates used to value the transaction are either: i) The date at which a commitment for performance by the counter party to earn the equity instruments is established; or ii) The date at which the counter party’s performance is complete. |
Recent Accounting Pronouncements [Policy Text Block] | p) Recent Accounting Pronouncements The Company has implemented all new accounting pronouncements that are in effect. These pronouncements did not have any material impact on the financial statements unless otherwise disclosed, and the Company does not believe that there are any other new accounting pronouncements that have been issued that might have a material impact on its financial position or results of operations. |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Schedule of Amortization Rates [Table Text Block] | Computer hardware 30% declining-balance Computer software 50% declining-balance Office furniture 20% declining-balance Automobile 20% declining-balance Equipment 30% declining-balance Shop equipment 30% declining balance Shop equipment under capital leases Straight-line over 60 months |
INVENTORY (Tables)
INVENTORY (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Schedule of Inventory [Table Text Block] | 2018 2017 Computers $ 9,653 $ 9,698 Monitors 29,921 31,779 Printers 3,551 2,175 Charging stations 22,715 24,968 Parts and enclosures 48,775 56,481 General 2,615 3,672 $ 117,230 $ 128,773 |
EQUIPMENT (Tables)
EQUIPMENT (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Schedule of Property and Equipment [Table Text Block] | 2018 Accumulated Net Book Cost Amortization Value Computer hardware $ 38,713 $ 37,619 $ 1,094 Computer software 1,950 1,950 – Office furniture 11,828 7,634 4,194 Equipment 52,932 42,741 10,191 Shop equipment 22,009 7,503 14,506 Shop equipment under capital leases 53,139 16,055 37,084 $ 180,571 $ 113,502 $ 67,069 2017 Accumulated Net Book Cost Amortization Value Computer hardware $ 38,713 $ 37,115 $ 1,598 Computer software 1,950 1,950 – Office furniture 11,828 6,745 5,083 Automobile 8,669 3,812 4,857 Equipment 52,395 42,743 9,652 Shop equipment 22,009 1,287 20,722 Shop equipment under capital leases 53,139 5,427 47,712 $ 188,703 $ 99,079 $ 89,624 |
INTANGIBLE ASSETS (Tables)
INTANGIBLE ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Schedule of Intangible Assets [Table Text Block] | 2018 Accumulated Net Book Cost Amortization Value Trademarks $ 78,214 $ 28,736 $ 49,478 Patents 21,818 8,000 13,818 Intellectual property 7,388 2,709 4,679 $ 107,420 $ 39,445 $ 67,975 2017 Accumulated Net Book Cost Amortization Value Trademarks $ 78,214 $ 20,915 $ 57,299 Patents 21,818 5,818 16,000 Intellectual property 7,388 1,969 5,419 $ 107,420 $ 28,702 $ 78,718 |
STOCK OPTIONS (Tables)
STOCK OPTIONS (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block] | 2018 2017 2016 Expected dividend yield N/A 0% N/A Risk-free interest rate N/A 1.74% N/A Expected volatility N/A 140% N/A Expected option life (in years) N/A 5 N/A |
Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block] | Weighted- Weighted Average Average Remaining Number of Exercise Contractual Options Price Term (years) Outstanding, December 31, 2016 1,900,000 $0.20 3.20 Granted in 2017 4,630,000 $0.07 3.15 Outstanding, December 31, 2017 and 2018 6,530,000 $0.11 2.77 Exercisable, December 31, 2018 4,986,666 0.12 2.57 |
Schedule of Non-Vested Stock Options, Activity [Table Text Block] | Weighted Average Number of Grant Date Options Fair Value Non-vested at December 31, 2016 350,000 $0.16 Granted 4,630,000 $0.07 Vested (1,893,333) $0.07 Non-vested at December 31, 2017 3,086,667 $0.07 Vested (1,543,333) $0.18 Non-vested at December 31, 2018 1,543,334 $0.18 |
Schedule of Disclosure of Stock Options Outstanding [Table Text Block] | Number of Options Exercise Price Expiry Date 600,000 $0.20 April 30, 2019 300,000 $0.20 July 31, 2020 1,000,000 $0.20 September 4, 2020 4,630,000 $0.07 June 7, 2022 6,530,000 |
COMMITMENTS AND CONTRACTUAL O_2
COMMITMENTS AND CONTRACTUAL OBLIGATIONS (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block] | Fiscal year ending December 31, 2019 $ 69,091 (CDN $ 94,257) Fiscal year ending December 31, 2020 61,849 (CDN $ 84,378) Fiscal year ending December 31, 2021 26,817 (CDN $ 36,585) Fiscal year ending December 31, 2022 5,248 (CDN $ 7,160) Total $ 163,005 (CDN$222,380) |
FINANCIAL INSTRUMENTS AND RIS_2
FINANCIAL INSTRUMENTS AND RISK MANAGEMENT (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Schedule of Financial Instruments at Fair Value [Table Text Block] | DECEMBER 31, 2018 FAIR VALUE TOTAL INPUT HELD-FOR- CARRYING FAIR LEVEL TRADING VALUE VALUE Financial assets Cash 1 $ 42,973 $ 42,973 $ 42,973 DECEMBER 31, 2017 FAIR VALUE TOTAL INPUT HELD-FOR- CARRYING FAIR LEVEL TRADING VALUE VALUE Financial assets Cash 1 $ 17,206 $ 17,206 $ 17,206 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Schedule of Provision for Income Tax [Table Text Block] | 2018 2017 2016 Computed expected benefit income taxes $ (344,000 ) $ (216,000 ) $ (238,000 ) Increase in valuation allowance 344,000 216,000 238,000 $ $ – $ – |
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | 2018 2017 Deferred income tax asset $ 4,395,000 $ 4,051,000 Valuation allowance (4,395,000 ) (4,051,000 ) $ – $ – |
NATURE OF OPERATIONS AND GOIN_2
NATURE OF OPERATIONS AND GOING CONCERN (Narrative) (Details) - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 |
Accumulated losses | $ 16,646,493 | $ 16,023,878 |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Narrative) (Details) | 12 Months Ended |
Dec. 31, 2018 | |
Amortization period of patents, trademarks and other rights | 10 years |
INVENTORY (Narrative) (Details)
INVENTORY (Narrative) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Inventory obsolescence | $ 13,561 | $ 28,243 | $ 22,453 |
CAPITAL LEASE OBLIGATIONS (Narr
CAPITAL LEASE OBLIGATIONS (Narrative) (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Capital lease, effective interest rate | 5.56% | |
Capital lease, amount | $ 34,790 | $ 47,308 |
Payments for leases | 12,518 | 4,684 |
Future lease payments | 34,790 | |
Capital lease payments, due in one year | 9,210 | |
Capital lease payments, due after one year | $ 25,580 | |
Capital lease term | 5 years | |
Capital leased asset, cost | $ 53,139 | 53,139 |
Capital leased asset, accumulated amortization | 37,084 | 47,712 |
Capital lease asset, net | $ 16,055 | $ 5,427 |
RELATED PARTY TRANSACTIONS AN_2
RELATED PARTY TRANSACTIONS AND AMOUNTS OWING (Narrative) (Details) - USD ($) | 1 Months Ended | 12 Months Ended | ||
Dec. 31, 2011 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Management fees to companies controlled by officers and directors | $ 21,225 | $ 23,103 | $ 41,514 | |
Salaries to officer of Company and spouse | 57,758 | 135,864 | ||
Share-based compensation to directors and officers | 36,433 | 250,819 | 64,403 | |
Class A Preferred Shares [Member] | ||||
Amounts owing to related parties | $ 7,863,855 | |||
Number of shares issued | 1,000,000 | 7,863,855 | ||
Price per share of shares issued | $ 1 | |||
Directors and Officers [Member] | ||||
Share-based compensation to directors and officers | 27,148 | 191,082 | $ 64,403 | |
Companies Controlled by a Director [Member] | ||||
Amounts owing to related parties | 14,557 | 7,533 | ||
Officers [Member] | ||||
Amounts owing to related parties | 19,241 | 6,277 | ||
Director [Member] | ||||
Amounts owing to related parties | 3,635 | 6,344 | ||
President [Member] | ||||
Amounts from related parties | $ 1,469,663 | $ 986,726 |
STOCK OPTIONS (Narrative) (Deta
STOCK OPTIONS (Narrative) (Details) - USD ($) | Jun. 07, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Share-based compensation to directors and officers | $ 36,433 | $ 250,819 | $ 64,403 | |
Total unrecognized compensation cost related to non-vested stock options | $ 33,883 | $ 70,551 | ||
Stock options exercise price | $ 0.07 | |||
Directors, officers and third parties [Member] | Stock options [Member] | ||||
Number of shares authorized to grant | 6,620,230 | |||
June 7, 2017 [Member] | Stock options [Member] | ||||
Stock options granted | 4,630,000 | |||
Stock options exercise price | $ 0.07 | |||
Number of options vested | 1,543,333 | |||
Exercise period | 5 years | |||
June 7, 2018 [Member] | Stock options [Member] | ||||
Number of options vested | 1,543,333 | |||
June 7, 2019 [Member] | Stock options [Member] | ||||
Number of options vested | 1,543,333 |
REDEEMABLE PREFERRED SHARES (Na
REDEEMABLE PREFERRED SHARES (Narrative) (Details) - USD ($) | 1 Months Ended | 12 Months Ended | |||
Dec. 31, 2011 | Dec. 31, 2016 | Dec. 31, 2018 | Dec. 31, 2017 | Nov. 15, 2011 | |
Preferred stock, shares authorized | 100,000,000 | 100,000,000 | 100,000,000 | ||
Preferred stock, shares issued | 9,891,800 | 9,891,800 | |||
Reversal of accrued dividends payable | $ 734,228 | ||||
Class A Preferred Shares [Member] | |||||
Preferred stock, shares authorized | 25,000,000 | ||||
Cumulative cash dividend, percentage | 10.00% | ||||
Stock Issued During Period, Shares, New Issues | 1,000,000 | 7,863,855 | |||
Proceeds from Issuance of Private Placement | $ 1,000,000 | ||||
Issuance of preferred shares upon conversion of note (shares) | 1,027,945 | ||||
Preferred stock, voting rights | The Class A Preferred Shares have voting rights (one vote per share) equal to those of the Company's common shares. | ||||
Preferred stock, redemption terms | At any time, the Company may redeem the Class A Preferred Shares for an amount equal to $1.00 per share plus the amount of any accrued and unpaid dividends thereon. | ||||
Preferred stock, redemption price (dollars per share) | $ 1 | $ 1 |
FINANCIAL INSTRUMENTS AND RIS_3
FINANCIAL INSTRUMENTS AND RISK MANAGEMENT (Narrative) (Details) - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 |
Accounts payable, current | $ 45,228 | $ 37,825 |
Accrued liabilities | $ 21,990 | $ 23,000 |
SEGMENTED INFORMATION (Narrativ
SEGMENTED INFORMATION (Narrative) (Details) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Customer revenue percentage | 86.00% | 50.00% | 78.00% |
INCOME TAXES (Narrative) (Detai
INCOME TAXES (Narrative) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Statutory income tax rate | 27.00% | 26.00% | 26.00% |
Operating loss carryforwards | $ 16,276,000 | $ 15,580,000 |
Schedule of Amortization Rates
Schedule of Amortization Rates (Details) | 12 Months Ended |
Dec. 31, 2018 | |
Computer hardware [Member] | |
Amortization Rate | 30.00% |
Computer software [Member] | |
Amortization Rate | 50.00% |
Office furniture [Member] | |
Amortization Rate | 20.00% |
Automobile [Member] | |
Amortization Rate | 20.00% |
Equipment [Member] | |
Amortization Rate | 30.00% |
Shop equipment [Member] | |
Amortization Rate | 30.00% |
Shop equipment under capital leases [Member] | |
Amortization description | Straight-line over 60 months |
Schedule of Inventory (Details)
Schedule of Inventory (Details) - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 |
Inventory | $ 117,230 | $ 128,773 |
Computers [Member] | ||
Inventory | 9,653 | 9,698 |
Monitors [Member] | ||
Inventory | 29,921 | 31,779 |
Printers [Member] | ||
Inventory | 3,551 | 2,175 |
Charging Stations [Member] | ||
Inventory | 22,715 | 24,968 |
Parts and enclosures [Member] | ||
Inventory | 48,775 | 56,481 |
General [Member] | ||
Inventory | $ 2,615 | $ 3,672 |
Schedule of Property and Equipm
Schedule of Property and Equipment (Details) - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 |
Cost | $ 180,571 | $ 188,703 |
Accumulated amortization | 113,502 | 99,079 |
Net book value | 67,069 | 89,624 |
Computer hardware [Member] | ||
Cost | 38,713 | 38,713 |
Accumulated amortization | 37,619 | 37,115 |
Net book value | 1,094 | 1,598 |
Computer software [Member] | ||
Cost | 1,950 | 1,950 |
Accumulated amortization | 1,950 | 1,950 |
Net book value | 0 | 0 |
Office furniture [Member] | ||
Cost | 11,828 | 11,828 |
Accumulated amortization | 7,634 | 6,745 |
Net book value | 4,194 | 5,083 |
Automobile [Member] | ||
Cost | 8,669 | |
Accumulated amortization | 3,812 | |
Net book value | 4,857 | |
Equipment [Member] | ||
Cost | 52,932 | 52,395 |
Accumulated amortization | 42,741 | 42,743 |
Net book value | 10,191 | 9,652 |
Shop equipment [Member] | ||
Cost | 22,009 | 22,009 |
Accumulated amortization | 7,503 | 1,287 |
Net book value | 14,506 | 20,722 |
Shop equipment under capital leases [Member] | ||
Cost | 53,139 | 53,139 |
Accumulated amortization | 16,055 | 5,427 |
Net book value | $ 37,084 | $ 47,712 |
Schedule of Intangible Assets (
Schedule of Intangible Assets (Details) - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 |
Cost | $ 107,420 | $ 107,420 |
Accumulated amortization | 39,445 | 28,702 |
Net book value | 67,975 | 78,718 |
Trademarks [Member] | ||
Cost | 78,214 | 78,214 |
Accumulated amortization | 28,736 | 20,915 |
Net book value | 49,478 | 57,299 |
Patents [Member] | ||
Cost | 21,818 | 21,818 |
Accumulated amortization | 8,000 | 5,818 |
Net book value | 13,818 | 16,000 |
Intellectual Property [Member] | ||
Cost | 7,388 | 7,388 |
Accumulated amortization | 2,709 | 1,969 |
Net book value | $ 4,679 | $ 5,419 |
Schedule of Share-based Payment
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions (Details) | 12 Months Ended |
Dec. 31, 2017 | |
Expected dividend yield | 0.00% |
Risk-free interest rate | 1.74% |
Expected volatility | 140.00% |
Expected option life (in years) | 5 years |
Schedule of Share-based Compens
Schedule of Share-based Compensation, Stock Options, Activity (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Number of Options, Outstanding, Beginning of the Period | 6,530,000 | 1,900,000 | |
Weighted Average Exercise Price, Beginning of the Period | $ 0.11 | $ 0.20 | |
Weighted Average Remaining Contractual Term | 2 years 9 months 7 days | 3 years 1 month 24 days | 3 years 2 months 12 days |
Number of Options, Granted in Period | 4,630,000 | ||
Weighted Average Exercise Price, Grants in Period | $ 0.07 | ||
Weighted Average Remaining Contractual Term (years) | 3 years 1 month 24 days | ||
Number of Options, Outstanding, End of the Period | 6,530,000 | 6,530,000 | 1,900,000 |
Weighted Average Exercise Price, End of the Period | $ 0.11 | $ 0.11 | $ 0.20 |
Number of Options, Exercisable End of the Period | 4,986,666 | ||
Weighted Average Exercise Price, Exercisable, End of the Period | $ 0.12 | ||
Weighted Average Remaining Contractual Term, Exercisable, End of the Period | 2 years 6 months 26 days |
Schedule of Non-Vested Stock Op
Schedule of Non-Vested Stock Options, Activity (Details) - $ / shares | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Number of Options, Outstanding, Beginning of the Period | 6,530,000 | 1,900,000 |
Weighted Average Exercise Price, Beginning of the Period | $ 0.11 | $ 0.20 |
Number of Options, Granted in Period | 4,630,000 | |
Number of Options, Outstanding, End of the Period | 6,530,000 | 6,530,000 |
Weighted Average Exercise Price, End of the Period | $ 0.11 | $ 0.11 |
Non-Vested Stock Options [Member] | ||
Number of Options, Outstanding, Beginning of the Period | 3,086,667 | 350,000 |
Weighted Average Exercise Price, Beginning of the Period | $ 0.07 | $ 0.16 |
Number of Options, Granted in Period | 4,630,000 | |
Weighted Average Grant Date Fair Value, Options Granted | $ 0.07 | |
Number of Options Vested | (1,543,333) | (1,893,333) |
Weighted Average Grant Date Fair Value, Options Vested | $ 0.18 | $ 0.07 |
Number of Options, Outstanding, End of the Period | 1,543,334 | 3,086,667 |
Weighted Average Exercise Price, End of the Period | $ 0.18 | $ 0.07 |
Schedule of Disclosure of Stock
Schedule of Disclosure of Stock Options Outstanding (Details) - $ / shares | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Number of Options | 6,530,000 | 6,530,000 | 1,900,000 |
Stock Options Exercise Price | $ 0.11 | $ 0.11 | $ 0.20 |
Expires April 30, 2019 [Member] | |||
Number of Options | 600,000 | ||
Stock Options Exercise Price | $ 0.20 | ||
Expires July 31, 2020 [Member] | |||
Number of Options | 300,000 | ||
Stock Options Exercise Price | $ 0.20 | ||
Expires September 4, 2020 [Member] | |||
Number of Options | 1,000,000 | ||
Stock Options Exercise Price | $ 0.20 | ||
Expires June 7, 2022 [Member] | |||
Number of Options | 4,630,000 | ||
Stock Options Exercise Price | $ 0.07 |
Schedule of Future Minimum Rent
Schedule of Future Minimum Rental Payments for Operating Leases (Details) - Dec. 31, 2018 | USD ($) | CAD ($) |
Leases, future minimum payments, current | $ 69,091 | $ 94,257 |
Leases, future minimum payments, due in two years | 61,849 | 84,378 |
Leases, future minimum payments, due in three years | 26,817 | 36,585 |
Leases, future minimum payments, due in four years | 5,248 | 7,160 |
Leases, future minimum payments | $ 163,005 | $ 222,380 |
Schedule of Financial Instrumen
Schedule of Financial Instruments at Fair Value (Details) - Fair Value, Inputs, Level 1 [Member] - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 |
Cash, Held-For-Trading | $ 42,973 | $ 17,206 |
Cash Equivalents, at Carrying Value | 42,973 | 17,206 |
Cash and Cash Equivalents, Fair Value Disclosure | $ 42,973 | $ 17,206 |
Schedule of Provision for Incom
Schedule of Provision for Income Tax (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Computed expected benefit income taxes | $ (344,000) | $ (216,000) | $ (238,000) |
Increase in valuation allowance | 344,000 | 216,000 | 238,000 |
Income Tax Expense | $ 0 | $ 0 | $ 0 |
Schedule of Deferred Tax Assets
Schedule of Deferred Tax Assets and Liabilities (Details) - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 |
Deferred income tax asset | $ 4,395,000 | $ 4,051,000 |
Valuation allowance | (4,395,000) | (4,051,000) |
Deferred tax assets, total | $ 0 | $ 0 |