Cover
Cover | 12 Months Ended |
Dec. 31, 2023 shares | |
Cover [Abstract] | |
Entity Registrant Name | MEDICURE INC. |
Entity Central Index Key | 0001133519 |
Document Type | 20-F |
Amendment Flag | false |
Entity Voluntary Filers | No |
Current Fiscal Year End Date | --12-31 |
Entity Well Known Seasoned Issuer | No |
Entity Shell Company | false |
Entity Emerging Growth Company | false |
Entity Current Reporting Status | Yes |
Document Period End Date | Dec. 31, 2023 |
Entity Filer Category | Accelerated Filer |
Document Fiscal Period Focus | FY |
Document Fiscal Year Focus | 2023 |
Entity Common Stock Shares Outstanding | 10,436,313 |
Document Annual Report | true |
Document Transition Report | false |
Entity File Number | 001-31995 |
Entity Incorporation State Country Code | Z4 |
Entity Address Address Line 1 | 2 - 1250 Waverley Street |
Entity Address City Or Town | Winnipeg |
Entity Address State Or Province | MB |
Entity Address Country | CA |
Entity Address Postal Zip Code | R3T 6C6 |
Security 12g Title | Common Shares |
Entity Interactive Data Current | Yes |
Document Registration Statement | false |
Document Accounting Standard | International Financial Reporting Standards |
Auditor Name | Ernst & Young LLP |
Auditor Location | Winnipeg, Canada |
Auditor Firm Id | 1263 |
Consolidated Statements of Fina
Consolidated Statements of Financial Position - CAD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Current assets: | ||
Cash and cash equivalents | $ 6,369 | $ 4,857 |
Accounts receivable | 4,794 | 5,635 |
Inventories | 2,900 | 3,221 |
Prepaid expenses | 1,143 | 1,134 |
Total current assets | 15,206 | 14,847 |
Non-current assets: | ||
Property and equipment | 736 | 1,187 |
Intangible assets | 8,940 | 10,624 |
Goodwill | 3,102 | 3,177 |
Other assets | 75 | 63 |
Total non-current assets | 12,853 | 15,051 |
Total assets | 28,059 | 29,898 |
Current liabilities: | ||
Accounts payable and accrued liabilities | 7,603 | 7,128 |
Royalty obligation | 0 | 179 |
Acquisition payable | 0 | 677 |
Income taxes payable | 16 | 60 |
Current portion of lease obligations | 315 | 346 |
Total current liabilities | 7,934 | 8,390 |
Non-current liabilities | ||
Lease obligations | 229 | 503 |
Total non-current liabilities | 229 | 503 |
Total liabilities | 8,163 | 8,893 |
Equity: | ||
Share capital | 81,014 | 80,917 |
Contributed surplus | 10,723 | 10,476 |
Accumulated other comprehensive loss | (5,989) | (5,458) |
Deficit | (65,852) | (64,930) |
Total equity | 19,896 | 21,005 |
Total liabilities and equity | $ 28,059 | $ 29,898 |
Consolidated Statements of Net
Consolidated Statements of Net Income (Loss) and Comprehensive Income (Loss) - CAD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Revenue, net | |||
Product sales, net | $ 21,694 | $ 23,065 | $ 21,744 |
Cost of goods sold | 7,705 | 6,990 | 9,032 |
Gross profit | 13,989 | 16,075 | 12,712 |
Expenses | |||
Selling (Note 18) | 8,306 | 7,935 | 10,312 |
General and administrative | 4,131 | 4,193 | 2,697 |
Research and development | 2,406 | 2,754 | 1,796 |
Total expense | 14,843 | 14,882 | 14,805 |
Other income: | |||
Other Income | 0 | (346) | (1,828) |
Total Other income | 0 | (346) | (1,828) |
Finance (income) costs: | |||
Finance (income) expense, net | (65) | 206 | 525 |
Foreign exchange loss (gain), net | 108 | (52) | (31) |
Total Finance costs (income) | (43) | (154) | (494) |
Net (loss) income before income taxes | (897) | 1,385 | (759) |
Income tax recovery (expense) | |||
Current | (25) | (20) | 32 |
Deferred | 0 | 0 | 0 |
(Expense) recovery | (25) | (20) | 32 |
Net (loss) profit | (922) | 1,365 | (727) |
Exchange differences on translation of foreign subsidiaries: | (531) | 1,182 | (143) |
Item that will not be reclassified to profit and loss | |||
Comprehensive Income (loss) | $ (1,453) | $ 2,547 | $ (870) |
Earnings (loss) per share | |||
Basic | $ (0.09) | $ 0.13 | $ (0.07) |
Diluted | $ (0.09) | $ 0.13 | $ (0.07) |
Consolidated Statements of Chan
Consolidated Statements of Changes in Equity - CAD ($) $ in Thousands | Total | Contributed Surplus [Member] | Accumulated other comprehensive loss | Retained Earnings (Accumulated Deficit) | Share Capital [Member] |
Balance, amount at Dec. 31, 2020 | $ 19,146 | $ 10,294 | $ (6,497) | $ (65,568) | $ 80,917 |
Statement [Line Items] | |||||
Net profit for the year ended December 31, 2021 | (727) | 0 | 0 | (727) | 0 |
Other comprehensive Income for the year ended December 31, 2021 | (143) | 0 | (143) | 0 | 0 |
Share-based compensation | 135 | 135 | 0 | 0 | 0 |
Total transactions with owners | 135 | 135 | 0 | 0 | 0 |
Balance, amount at Dec. 31, 2021 | 18,411 | 10,429 | (6,640) | (66,295) | 80,917 |
Statement [Line Items] | |||||
Net profit for the year ended December 31, 2021 | 1,365 | 0 | 0 | 1,365 | 0 |
Other comprehensive Income for the year ended December 31, 2021 | 1,182 | 0 | 1,182 | 0 | 0 |
Share-based compensation | 47 | 47 | 0 | 0 | 0 |
Total transactions with owners | 47 | 47 | 0 | 0 | 0 |
Balance, amount at Dec. 31, 2022 | 21,005 | 10,476 | (5,458) | (64,930) | 80,917 |
Statement [Line Items] | |||||
Net profit for the year ended December 31, 2021 | (922) | 0 | 0 | (922) | 0 |
Other comprehensive Income for the year ended December 31, 2021 | (531) | 0 | (531) | 0 | 0 |
Share-based compensation | 288 | 288 | 0 | 0 | 0 |
Total transactions with owners | 344 | 247 | 0 | 0 | 97 |
Stock options exercised | 56 | (41) | 0 | 97 | |
Balance, amount at Dec. 31, 2023 | $ 19,896 | $ 10,723 | $ (5,989) | $ (65,852) | $ 81,014 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - CAD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Cash (used in) provided by: Operating activities: | |||
Net profit (loss) for the year | $ (922) | $ 1,365 | $ (727) |
Adjustments for: | |||
Current income tax expense (recovery) | 25 | 20 | (32) |
Amortization of property and equipment | 434 | 461 | 406 |
Amortization of intangible assets | 1,736 | 1,594 | 2,739 |
Share based compensation | 288 | 47 | 135 |
Write-down of inventories | 277 | 38 | 1,339 |
Change in fair value of contingent consideration | 0 | (346) | (1,803) |
Finance (income) expense, net | (65) | 190 | 525 |
Unrealized foreign exchange loss (gain) | 108 | (52) | (31) |
Change in the following: | |||
Accounts receivable | 760 | (864) | 593 |
Inventories | (31) | 166 | 471 |
Prepaid expenses | (26) | (194) | 305 |
Other assets | 0 | (2) | 99 |
Accounts payable and accrued liabilities | (236) | 568 | 20 |
Interest received (paid), net | 48 | (16) | 49 |
Income taxes paid, net | (61) | (91) | 0 |
Royalties paid | (256) | (1,056) | (99) |
Cash flows from (used in) operating activities | 2,079 | 1,828 | 3,989 |
Investing activities: | |||
Repayment of holdback payable | 0 | 0 | (1,876) |
Acquisition of property and equipment | 0 | (14) | (377) |
Acquisition of intangible assets | (270) | (296) | (441) |
Cash flows (used in) from investing activities | (270) | (310) | (2,694) |
Financing activities: | |||
Repayment of lease liability | (353) | (355) | (316) |
Stock options exercised | 56 | 0 | 0 |
Cash flows used in financing activities | (297) | (355) | (316) |
Foreign exchange loss on cash held in foreign currency | 0 | 0 | (1) |
Increase (decrease) in cash | 1,512 | 1,163 | 978 |
Cash and cash equivalents, beginning of period | 4,857 | 3,694 | 2,716 |
Cash and cash equivalents, end of year | $ 6,369 | $ 4,857 | $ 3,694 |
Reporting entity
Reporting entity | 12 Months Ended |
Dec. 31, 2023 | |
Reporting entity | |
Reporting entity | 1. Reporting entity Medicure Inc. (the "Company") is a company domiciled and incorporated in Canada and as of October 24, 2011, its common shares are listed on the TSX Venture Exchange (“TSX-V”). Prior to October 24, 2011 and beginning on March 29, 2010, the Company's common shares were listed on the NEX board of the TSX-V. Prior to March 29, 2010, the Company's Common Shares were listed on the Toronto Stock Exchange. Additionally, the Company's shares were listed on the American Stock Exchange (later called NYSE Amex and now called NYSE MKT) on February 17, 2004 and the shares ceased trading on the NYSE Amex effective July 3, 2008. The Company remains a U.S. Securities and Exchange Commission registrant. The address of the Company's registered office is 2‑1250 Waverley Street, Winnipeg, Manitoba, Canada, R3T 6C6. The Company is a biopharmaceutical company engaged in the research, development and commercialization of human therapeutics. Through its subsidiary Medicure International, Inc., the Company has rights to the commercial product AGGRASTAT ® ® In September 2019, the Company acquired ownership of ZYPITAMAG ® ® ® ® On December 17, 2020, the Company, through its subsidiary, Medicure Pharma Inc., acquired and began operating Marley Drug, Inc. (“Marley Drug”), a leading specialty pharmacy serving customers across the United States. The Company’s ongoing research and development activities include the continued development and further implementation of a new regulatory, brand and life cycle management strategy for AGGRASTAT ® |
Basis of preparation of the con
Basis of preparation of the consolidated financial statements | 12 Months Ended |
Dec. 31, 2023 | |
Basis of preparation of the consolidated financial statements | |
Basis of preparation of the consolidated financial statements | 2. Basis of preparation of the consolidated financial statements (a) Statement of compliance These consolidated financial statements of the Company and its subsidiaries were prepared in accordance with International Financial Reporting Standards ("IFRS") as issued by the International Accounting Standards Board ("IASB"). The consolidated financial statements were authorized for issue by the Board of Directors on April 08, 2024. (b) Basis of presentation The consolidated financial statements have been prepared on the historical cost basis except for contingent consideration and the investment in Sensible Medical which are measured at fair value. (c) Functional and presentation currency The consolidated financial statements are presented in Canadian dollars, which is the Company's functional currency. All financial information presented has been rounded to the nearest thousand dollars, except where indicated otherwise. The Company has rounded comparative figures, which were previously presented as rounded to the nearest dollar, to the nearest thousand dollars to conform to current year presentation. (d) Use of estimates and judgments The preparation of these consolidated financial statements in conformity with IFRS requires management to make estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, revenue and expenses. Actual results may differ from these estimates. Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the period in which the estimates are revised and in any future periods affected. Information about key assumptions and estimation uncertainties that have a significant risk of resulting in a material adjustment to the carrying amount of assets and liabilities within the next financial year are included in the following notes to the consolidated financial statements for the year ended December 31, 2023: · Note 3(c)(ii): The valuation of the royalty obligation · Note 3(e): The accruals for returns, chargebacks, rebates and discounts Chargebacks are considered the most significant estimates and result from wholesalers selling the Company’s products to end hospitals at prices lower than the wholesaler acquisition cost, which results in variable consideration for the Company. The provision is estimated using historical chargeback experience, timing of actual chargebacks processed during the year, expected chargeback levels based on the remaining products in the wholesaler distribution channel and pricing differences. Estimating the chargeback accrual is complex and judgmental due to the level of uncertainty involved in management’s estimates for product that remains in the wholesaler distribution channel as at year-end, the extent of product sales that were expected to be subject to chargebacks and pricing differences. · Note 3(i): The measurement and useful lives of intangible assets · Note 3(q): The measurement and valuation of intangible assets and contingent consideration acquired and recorded as business combinations · Note 3(I): Impairment of non-financial assets The Company’s annual goodwill impairment test is based on value-in-use calculations that use a discounted cash flow model. These calculations require the use of estimates and forecasts of future cash flows. The recoverable amount is most sensitive to the discount rate, revenue growth rate, and operating margin. The key assumptions used to determine the recoverable amount are further explained in note 9. |
Material accounting policies
Material accounting policies | 12 Months Ended |
Dec. 31, 2023 | |
Material accounting policies | 3. Material accounting policies The accounting policies set out below have been applied consistently to all periods presented in these consolidated financial statements, unless otherwise indicated. (a) Basis of consolidation These consolidated financial statements include the accounts of the Company and its subsidiaries. Subsidiaries are entities controlled by the Company. Control exists when the Company has power over the investee and when the Company is exposed, or has the rights, to variable returns from the investee. Subsidiaries are included in the consolidated financial results of the Company from the effective date of acquisition up to the effective date of disposition or loss of control and include wholly owned subsidiaries Medicure International Inc., Medicure Pharma Inc., Medicure U.S.A. Inc. and Medicure Pharma Europe Limited. Beginning on December 17, 2020, Marley Drug, Inc., became a subsidiary of Medicure Pharma Inc. and is consolidated with these financial statements. The financial statements of the subsidiaries are prepared for the same reporting period as the parent company, using consistent accounting policies. All intercompany transactions and balances and unrealized gains and losses from intercompany transactions have been eliminated. (b) Foreign currency Items included in the financial statements of each of the Company's consolidated subsidiaries are measured using the currency of the primary economic environment in which the subsidiary operates (the functional currency). The consolidated financial statements are presented in Canadian dollars, which is the Company's functional and presentation currency. Foreign currency transactions are translated into the respective functional currencies of the Company and its subsidiaries using the exchange rates prevailing at the dates of the transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation at period‑end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognized in profit or loss. Non-monetary items that are not carried at fair value are translated using the exchange rates as at the date of the initial transaction. Non-monetary items measured at fair value in a foreign currency are translated using the exchange rates at the date when the fair value is determined. The results and financial position of the Company's foreign operations that have a functional currency different from the Company’s functional and presentation currency are translated into Canadian dollars as follows: (i) (ii) (iii) When a foreign operation is disposed of, the component of other comprehensive income relating to that particular foreign operation is recognized in the consolidated statements of net income and comprehensive income, as part of the gain or loss on sale where applicable. (c) Financial instruments (i) Financial assets Initial recognition and measurement Upon recognition of a financial asset, classification is made based on the business model for managing the asset and the asset’s contractual cash flow characteristics. The financial asset is initially recognized at its fair value and subsequently classified and measured as (i) amortized cost; (ii) fair value through other comprehensive income (“FVOCI”); or (iii) fair value through profit or loss (“FVTPL”). Financial assets are classified as FVTPL if they have not been classified as measured at amortized cost or FVOCI. Upon initial recognition of an equity instrument that is not held-for-trading, the asset is recorded as FVTPL unless the Company irrevocably designates the presentation of subsequent changes in the fair value of such equity instrument as FVOCI. Subsequent measurement The subsequent measurement of financial assets depends on their classification as follows: Financial assets measured at amortized cost A financial asset is subsequently measured at amortized cost, using the effective interest method and net of any impairment allowance, if the asset is held within a business whose objective is to hold assets in order to collect contractual cash flows, and the contractual terms of the financial asset give rise, on specified dates, to cash flows that are solely payments of principal and interest. Cash and cash equivalents, accounts receivable and other assets are classified within this category. Financial assets at FVTPL Financial assets measured at FVTPL are carried in the consolidated statements of financial position at fair value with changes in fair value therein recognized in the consolidated statement of net income (loss) and comprehensive income (loss). There are presently no assets classified within this category. Financial assets at FVOCI Financial assets measured at FVOCI are carried in the statement of financial position at fair value with changes in fair value therein recognized in the statement of consolidated statement of net loss and comprehensive loss. The investment in Sensible Medical was designated within this category. (ii) Financial liabilities Initial recognition and measurement The Company recognizes a financial liability on the trade date in which it becomes a party to the contractual provisions of the instrument at fair value plus any directly attributable costs. Financial liabilities are subsequently measured at amortized cost or FVTPL, and are not subsequently reclassified. The Company’s financial liabilities are accounts payable and accrued liabilities, royalty obligation and acquisition payable which are recognized on an amortized cost basis. Financial liabilities measured at FVTPL include contingent consideration resulting from business combinations as defined by IFRS 9. The royalty obligation was recorded at its fair value at the date at which the liability was incurred and subsequently measured at amortized cost using the effective interest rate method at each reporting date. Estimating fair value for this liability required determining the most appropriate valuation model, which was dependent on its underlying terms and conditions. This estimate also required determining expected revenue from AGGRASTAT ® The acquisition payable liabilities were recorded at their fair value at the date at which the liability was incurred and subsequently measured at amortized cost using the effective interest rate method at each reporting date. Estimating fair value for these liabilities required determining an appropriate discount rate. Contingent consideration resulting from a business combination is valued at fair value at the acquisition date as part of the business combination and subsequently fair valued as described in the business combination policy below. (iii) Derecognition A financial asset or, where applicable a part of a financial asset or part of a group of similar financial assets is derecognized when the contractual rights to receive cash flows from the asset have expired, or the Company has transferred its rights to receive cash flows from the asset or has assumed an obligation to pay the received cash flows in full without material delay to a third party under a “pass-through” arrangement; and either (a) the Company has transferred substantially all the risks and rewards of the asset, or (b) the Company has neither transferred nor retained substantially all the risks and rewards of the asset, but has transferred control of the asset. A financial liability is derecognized when the obligation under the liability is discharged or cancelled or expires. When an existing financial liability is replaced by another from the same lender on substantially different terms, or the terms of an existing liability are substantially modified, such an exchange or modification is treated as a derecognition of the original liability and the recognition of a new liability, and the difference in the respective carrying amounts is recognized in the consolidated statements of net income (loss) and comprehensive income (loss). (iv) Offsetting of financial instruments Financial assets and financial liabilities are offset, and the net amount reported in the statement of financial position if, and only if, there is a currently enforceable legal right to offset the recognized amounts and there is an intention to settle on a net basis, or to realize the assets and settle the liabilities simultaneously. (v) Fair value of financial instruments Fair value is determined based on the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. Fair value is measured using the assumptions that market participants would use when pricing an asset or liability. Typically, fair value is determined by using quoted prices in active markets for identical or similar assets or liabilities. When quoted prices in active markets are not available, fair value is determined using valuation techniques that maximize the use of observable inputs. When observable valuation inputs are not available, significant judgment is required through determining the valuation technique to apply, the valuation techniques such as discounted cash flow analysis and selecting inputs. The use of alternative valuation techniques or valuation inputs may result in a different fair value. (vi) Transaction costs Transaction costs for all financial instruments measured at amortized cost, the transaction costs are included in the initial measurement of the financial asset or financial liability and are amortized using the effective interest rate method over a period that corresponds with the term of the financial instruments. Transaction costs for financial instruments classified as FVTPL are recognized as an expense in professional fees, in the period the cost was incurred. (vii) Embedded derivatives For financial liabilities measured at amortized cost, under certain conditions, an embedded derivative must be separated from its host contract and accounted for as a derivative. An embedded derivative causes some or all of the cash flows that otherwise would be required by the contract to be modified according to a specified interest rate, financial instrument price, commodity price, foreign exchange rate, index of prices or rates, a credit rating or credit index, or other variable, provided in the case of a non-financial variable that the variable is not specific to a party to the contract. For financial assets at FVTPL, any embedded derivatives are not separated from its host contract. (d) Impairment of financial assets An “expected credit loss” impairment model applies to financial assets which requires a loss allowance to be recorded on financial assets measured at amortized cost based on their expected credit losses. An estimate is made to determine the present value of future cash flows associated with the asset, and, if required, an impairment loss is recorded. The impairment loss reduces the carrying value of the impaired financial asset to the value of the estimated present value of the future cash flows associated with the asset, discounted at the financial asset’s original effective interest rate either directly or through the use of an allowance account and the resulting impairment loss is recorded in profit or loss. The Company considers a financial asset in default when internal or external information indicates that the Company is unlikely to receive the outstanding contractual amounts in full. A financial asset is written off when there is no reasonable expectation of recovering the contractual cash flows. For accounts receivable, the Company applies the simplified approach in calculating expected credit losses. Therefore, the Company does not track changes in credit risk, but instead recognizes a loss allowance based on lifetime expected credit losses at each reporting date. The Company has established a provision matrix that is based on its historical credit loss experience, adjusted for forward-looking factors specific to the debtors and the economic environment. Impairment losses on financial assets carried at amortized cost are reversed in subsequent periods if the amount of the loss decreases and the decrease can be related objectively to an event occurring after the impairment was recognized. (e) Revenue from contracts with customers As of December 31, 2023, excluding Marley Drug, the Company has two commercially available products that generated revenue for the year ended December 31, 2023, AGGRASTAT ® ® ® ® Sales are made subject to certain discounts available for prompt payment, volume discounts, rebates or chargebacks. Revenue from these sales is recognized based on the price specified per the pricing terms of the sales invoices, net of the estimated discounts, rebates or chargebacks. Variable consideration is based on historical information, using the expected value method. Revenue is only recognized to the extent that it is highly probable that a significant reversal will not occur. A liability is included within accounts payable and accrued liabilities and is measured for expected payments that will be made to the customers for the discounts in which they are entitled. Sales do not contain an element of financing as sales are made with credit terms within the normal operating cycle of the date of the invoice, which is consistent with market practice. Through Marley Drug, the Company operates a retail pharmacy and mail order pharmacy business selling pharmaceuticals directly to end users, being individual patients. Revenue for in-store sales is recognized upon payment by the customer. This is the point where all performance obligations have been met in regards to the product sold. Revenue for mail order sales is recognized upon the shipment of the products to the customer, generally at the time the product is picked up from the Company’s premises by the carrier. This is the point where all performance obligations have been met in regards to the product sold. (f) Cash and cash equivalents The Company considers all liquid investments purchased with a maturity of three months or less at acquisition to be cash and cash equivalents, which are carried and classified at amortized cost. (g) Inventories Inventories consist of unfinished product (raw material in the form of active pharmaceutical ingredients and packaging materials) and finished commercial product, which are available for sale either to wholesale, pharmacy and hospital customers or through Marley Drug direct to patients, and are measured at the lower of cost and net realizable value. The cost of inventories is based on the first‑in, first‑out principle, and includees expenditures incurred in acquiring the inventories, production or conversion costs and other costs incurred in bringing them to their existing location and condition. Inventories are written down to net realizable value when the cost of inventories is estimated to be unrecoverable due to obsolescence, damage, or declining selling prices. Net realizable value is the estimated selling price in the ordinary course of business, less the estimated costs of completion and selling expenses. When the circumstances that previously caused inventories to be written down below cost no longer exist, or when there is clear evidence of an increase in selling prices, the amount of the write-down previously recorded is reversed. (h) Property and equipment (i) Recognition and measurement Items of property and equipment are measured at cost less accumulated amortization and accumulated impairment losses and reversals. When parts of an item of property and equipment have different useful lives, they are accounted for as separate items (major components) of property and equipment. The costs of the day‑to‑day servicing of property and equipment are recognized in the consolidated statements of net income (loss) and comprehensive income (loss) in the period in which they are incurred. (ii) Amortization Amortization is recognized in profit or loss over the estimated useful lives of each part of an item of property and equipment in a manner that most closely reflects the expected pattern of consumption of the future economic benefits embodied in the asset. The estimated useful lives for the current and comparative periods are as follows: Asset Basis Rate Computers, pharmacy equipment, office equipment, furniture and fixtures Straight-line 20% to 25% Leasehold improvements Straight-line Term of lease Right-of-use assets Straight-line Term of lease Amortization methods, useful lives and residual values are reviewed at each period end and adjusted if appropriate. (i) Intangible assets Intangible assets that are acquired separately are measured at cost less accumulated amortization and 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. Product licenses are amortized on a straight-line basis over the contractual term of the acquired license. Pharmacy licenses are amortized on a straight-line basis over their estimated useful life of approximately seven years. Patents and drug approvals are amortized on a straight‑line basis over the legal life of the respective patent, ranging from five to twenty years, or its economic life, if shorter. Brand names are amortized on a straight-line basis over the estimated economic life of the brand name estimated at ten years. Trademarks are amortized on a straight‑line basis over the legal life of the respective trademark, being ten years, or its economic life, if shorter. Customer lists are amortized on a straight‑line basis over a period of seven to twelve years. Amortization on product licenses commences when the intangible asset is available for use, which would typically be in connection with the commercial launch of the associated product under the license. Following initial recognition, intangible assets are carried at cost less accumulated amortization and accumulated impairment losses. The costs of servicing the Company's patents and trademarks are expensed as incurred. The amortization method and amortization period of an intangible asset with a finite useful life are reviewed at least annually. Changes in the expected useful life or the expected pattern of consumption of future economic benefits embodied in the asset are accounted for by changing the amortization period or method, as appropriate, and are treated as changes in accounting estimates in the consolidated statements of net income (loss) and comprehensive income (loss). (j) Research and development Expenditure on research activities, undertaken with the prospect of gaining new scientific or technical knowledge and understanding, is recognized in profit or loss as incurred. Development activities involve a plan or design for the production of new or substantially improved products and processes. Development expenditures are capitalized only if development costs can be measured reliably, the product or process is technically and commercially feasible, future economic benefits are probable, and the Company intends to and has sufficient resources to complete development and to use or sell the asset. No development costs have been capitalized to date. Research and development expenses include all direct and indirect operating expenses supporting the products in development. Clinical trial expenses are a component of the Company’s research and development costs. These expenses include fees paid to contract research organizations, clinical sites, and other organizations who conduct research and development activities on the Company’s behalf. The amount of clinical trial expenses recognized in a period related to clinical agreements are based on estimates of the work performed using an accrual basis of accounting. These estimates incorporate factors such as patient enrolment, services provided, contractual terms, and prior experience with similar contracts. (k) Government assistance Government assistance, in the form of grants or the Canada Emergency Wage Subsidy, is recognized at fair value where there is reasonable assurance that the grant will be received and all attaching conditions will be complied with. Government assistance toward current expenses is recorded as a reduction of the related expenses in the period the expenses are incurred. Government assistance towards property and equipment is deducted from the cost of the related property and equipment. The benefits of investment tax credits for scientific research and experimental development expenditures ("SR&ED") incurred directly by the Company are recognized in the period the qualifying expenditure is made, provided there is reasonable assurance of recoverability. SR&ED investment tax credits receivable are recorded at their net realizable value. (l) Impairment of non-financial assets The Company assesses at each reporting period whether there is an indication that a non‑financial asset may be impaired. An impairment loss is recognized when the carrying amount of an asset, or its cash-generating unit (“CGU”), exceeds its recoverable amount. Impairment losses are recognized in net profit (loss) and comprehensive profit (loss). A CGU is the smallest identifiable group of assets that generates cash inflows that are largely independent of the cash inflows from other assets or groups of assets. The recoverable amount is the greater of the asset's or CGU's fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre‑tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset or CGU. In determining fair value less costs to sell, an appropriate valuation model is used. For an asset that does not generate largely independent cash inflows, the recoverable amount is determined for the CGU to which the asset belongs. For assets other than goodwill, impairment losses recognized in prior periods are assessed at each reporting date for any indications that the loss has decreased or no longer exists. An impairment loss is reversed if there has been a change in the estimates used to determine the recoverable amount. An impairment loss is reversed only to the extent that the asset's carrying amount does not exceed the carrying amount that would have been determined, net of amortization, if no impairment loss had been recognized. Goodwill is tested for impairment annually and when circumstances indicate that the carrying value may be impaired. Impairment is determined for goodwill by assessing the recoverable amount of each CGU to which the goodwill relates. When the recoverable amount of the CGU is less than its carrying amount, an impairment loss is recognized. Impairment losses relating to goodwill are not reversed in future periods. (m) Employee benefits (i) Short-term employee benefits Short‑term employee benefit obligations are measured on an undiscounted basis and are expensed as the related service is provided. (ii) Share-based payment transactions The grant date fair value of share‑based payment awards granted to employees is recognized as a personnel expense, with a corresponding increase in equity, over the period that the employees unconditionally become entitled to the awards. The amount recognized as an expense is adjusted to reflect the number of awards for which the related service and non‑market vesting conditions are expected to be met, such that the amount ultimately recognized as an expense is based on the number of awards that do meet the related service and non‑market performance conditions at the vesting date. For share‑based payment awards with non‑vesting conditions, the grant date fair value of the share‑based payment is measured to reflect such conditions and there is no true‑up for differences between expected and actual outcomes. Share‑based payment arrangements in which the Company receives goods or services as consideration for its own equity instruments are accounted for as equity‑settled share‑based payment transactions. In situations where equity instruments are issued and some or all of the goods or services received by the entity as consideration cannot be specifically identified, they are measured at fair value of the share‑based payment. Where the terms of an equity-settled transaction award are modified, the minimum expense recognized is the expense as if the terms had not been modified, if the original terms of the award are met. An additional expense is recognized for any modification that increases the total fair value of the share-based payment transaction or is otherwise beneficial to the employee as measured at the date of modification. Where an equity-settled award is cancelled, it is treated as if it vested on the date of the cancellation and any expense not yet recognized for the award (being the total expense as calculated at the grant date) is recognized immediately. This includes any awards where vesting conditions within the control of either the Company or the employee are not met. However, if a new award is substituted for the cancelled award, and designated as a replacement award on the date that it is granted, the cancelled award and new awards are treated as if they were a modification of the original awards. (n) Finance income and finance costs Finance costs comprise interest expense on borrowings, which are recognized in net profit (loss) and comprehensive profit (loss) using the effective interest rate method and accretion on the royalty obligation, offset by any finance income, which consists of interest income on funds invested and is recognized as it accrues in net income and comprehensive income, using the effective interest rate method. Foreign currency gains and losses are reported on a net basis. (o) Income taxes The Company and its subsidiaries are generally taxable under the statutes of their country of incorporation. Income tax expense comprises current and deferred taxes. Current taxes and deferred taxes are recognized in profit or loss except to the extent that they relate to a business combination, or items recognized directly in equity or in other comprehensive income. Current taxes are the expected tax receivable or payable on the taxable income or loss for the year, using tax rates enacted or substantively enacted at the reporting date, and any adjustment to tax receivable or payable in respect of previous years. The Company follows the liability method of accounting for deferred taxes. Under this method, deferred taxes are recognized in respect of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for taxation purposes. Deferred taxes are not recognized for the following temporary differences: the initial recognition of assets or liabilities in a transaction that is not a business combination and that affects neither accounting nor taxable profit or loss, and differences relating to investments in subsidiaries and jointly controlled entities to the extent that it is probable that they will not reverse in the foreseeable future. In addition, deferred taxes are not recognized for taxable temporary differences arising on the initial recognition of goodwill. Deferred taxes are measured at the tax rates that are expected to be applied to temporary differences when they reverse, based on the tax laws that have been enacted or substantively enacted by the reporting date. Deferred tax assets and liabilities are offset if there is a legally enforceable right to offset current tax assets and liabilities, and they relate to income taxes levied by the same tax authority on the same taxable entity, or on different tax entities, but they intend to settle current tax assets and liabilities on a net basis or their tax assets and liabilities will be realized simultaneously. A deferred tax asset is recognized for unused tax losses, tax credits and deductible temporary differences, to the extent that it is probable that future taxable profits will be available against which they can be utilized. Deferred tax assets are reviewed at each reporting date and are reduced to the extent that it is no longer probable that the related tax benefit will be realized. The Company has provided for income taxes, including the impacts of tax legislation in various jurisdictions, in accordance with guidance issued by accounting regulatory bodies, the Canada Revenue Agency, the U.S. Internal Revenue Service, the Barbados Revenue Authority, as well as other state and local governments through the date of the issuance of these consolidated financial statements. Additional guidance and interpretations can be expected and such guidance, if any, could impact future results. While management continues to monitor these matters, the ultimate impact, if any, as a result of the application of any guidance issued in the future cannot be determined at this time. The Company and its subsidiaries file federal income tax returns in Canada, the United States, Barbados and other foreign jurisdictions, as well as various provinces and states in Canada and the United States, respectively. Uncertainties exist with respect to the interpretation of complex tax regulations, changes in tax laws and the amount and timing of future taxable income. Given the Company operates within a complex structure internationally, differences arising between the actual results and the assumptions made, or future changes to such assumptions, could necessitate future adjustments to taxable income and expenses recorded. The Company establishes provisions, based on reasonable estimates, for possible consequences of audits by the tax authorities of the respective countries in which it operates. The amount of such provisions are based on various factors, such as interpretations of tax regulations by each taxable entity and the responsible tax authority. The Company and its subsidiaries have open tax years, primarily from 2011 to 2023, with significant taxing jurisdictions, including Canada, the United States and Barbados. These open years contain certain matters that could be subject to differing interpretations of applicable tax laws and regulations and tax treaties, as they relate to the amount, timing or inclusion of revenues and expenses, or the sustainability of income tax positions of the Company and its subsidiaries. Certain of these tax years may remain open indefinitely. Such differences of interpretation may arise on a wide variety of issues, depending on the conditions prevailing in the respective company’s domicile. As the Company assesses the probability for litigation and subsequent cash outflow with respect to taxes as remote, no contingent liability has been recognized. Tax benefits acquired as part of a business combination, but not satisfying the criteria for separate recognition at that date, would be recognized subsequently if information about facts and circumstances changed. The adjustment would either be treated as a reduction to goodwill if it occurred during the measurement period or in profit or loss, when it occurs subsequent to the measurement period. (p) Earnings per share The Company presents basic earnings per share ("EPS") data for its common voting shares. Basic EPS is calculated by dividing the profit or loss attributable to common voting shareholders of the Company by the weighted average number of common voting shares outstanding during the period, adjusted for the Company's own shares held. Diluted EPS is computed similar to basic EPS except that the weighted average shares outstanding are increased to include additional shares for the assumed exercise of stock options and warrants, if dilutive. The number of additional shares is calculated by assuming that outstanding stock options and warrants were exercised and that the proceeds from such exercise were used to acquire common shares at the average market price during the reporting periods. (q) Business combinations and goodwill Business combinations are accounted for using the acquisition method. The consideration for an acquisition is measured at the fair values of the assets transferred, the liabilities assumed and the equity interests issued at the acquisition date. Transaction costs that are incurred in connection with a business combination, other than costs associated with the issuance of debt or equity securities, are expensed as incurred. Identified assets acquired and liabilities and contingent liabilities assumed are measu |
Business combinations
Business combinations | 12 Months Ended |
Dec. 31, 2023 | |
Business combinations | |
Business combinations | 4. Business combinations On December 17, 2020, the Company acquired 100% of issued and outstanding shares of Marley Drug, a leading specialty pharmacy serving more than 30,000 customers across the United States for cash consideration of $7,781, of which $1,374 was held back and was recorded on the consolidated statements of financial position of the Company as restricted cash with an offsetting liability recorded as a holdback payable to be released in connection with the forgiveness of Marley Drug’s loan under the Paycheck Protection Program (“PPP”) from the United States Small Business Administration (“SBA”) and general representations and warranties one year after the acquisition date. An additional $504 was recorded as a holdback payable and will become payable once all state licenses have effectively been transferred to the Company, net of 90-day adjustments to true-up cash and working capital targets for the transaction. During the year ended December 31, 2021, the Company released the holdback payable amount to the seller, less $25 in legal fees incurred, as the remaining outstanding state licenses had been effectively transferred to the Company. The $25 withheld from the holdback payment has been recorded within other income on the consolidated statements of net income (loss ) As well, the purchase agreement included contingent consideration of additional payments to the seller based on the achievement of certain future performance targets of Marley Drug. The first contingent consideration (“One-Year-Payment”) is based on a one-year revenue target up to USD$1.7 million based on Marley Drug’s historical revenues. The second contingent consideration (“Earn Out Payments”) is based on certain revenue milestone targets over a two-year period within Marley Drug. The contingent consideration period commences on the successful transfer of all licenses, unless it is triggered early by the seller. The One-Year Payment on the date of acquisition was originally recorded within current portion of contingent consideration on the consolidated statements of financial position with an estimated fair value of $1,922. The Earn Out Payments had been recorded within contingent consideration on the consolidated statements of financial position with an estimated fair value of $51. The fair value of the contingent consideration was estimated using probability weighted scenarios and a discount rate of 12%. At December 31, 2021, management concluded that there was a remote likelihood of the One-Year-Payment and the Earn Out Payments to occur based on fair value assessment completed at year-end. The fair value of the contingent consideration was estimated using probability-weighted scenarios and a discount rate of 12%. As a result of the assessment completed by management, the Company recognized a gain of $1,803 through other income on the consolidated statement of net loss and other comprehensive loss during the year-ended December 31, 2021. During the year ended December 31, 2022, neither the One Year Payment or the Earn Out Payments targets were met; as a result, management recognized a gain of $346 through other income. At December 31, 2023 and December 31, 2022, the Company does not have any balances recorded pertaining to the short-term and long-term contingent consideration payable balance. |
Accounts receivable
Accounts receivable | 12 Months Ended |
Dec. 31, 2023 | |
Accounts receivable | |
Accounts receivable | 5. Accounts receivable As at December 31 2023 2022 Trade accounts receivable $ 4,426 $ 5,525 Other accounts receivable 368 110 $ 4,794 $ 5,635 As at December 31, 2023, there were three customers with amounts owing greater than 10% of the Company’s accounts receivable, which totaled 94% in aggregate (Customer A – 32%, Customer B – 16%, Customer C – 46%). As at December 31, 2022, there were three customers with amounts owing greater than 10% of the Company’s accounts receivable, which totaled 97% in aggregate (Customer A – 41%, Customer B – 19%, Customer C – 37%). During the year ended December 31, 2023, the Company did not record any write-offs of accounts receivable (2022 – $218; 2021 – $305). Write-offs in the prior years related to pricing adjustments on sales which were deemed to be uncollectible account receivable balances. The write-off expense during the prior years has been included within general and administrative expenses on the consolidated statement of net income (loss) and comprehensive income (loss). |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2023 | |
Inventories | |
Inventories | 6. Inventories As at December 31 2023 2022 Finished commercial product available for sale $ 2,048 $ 2,365 Finished retail pharmacy product available for sale 306 267 Unfinished product and packaging materials 546 589 $ 2,900 $ 3,221 Inventories expensed as part of cost of goods sold during the year ended December 31, 2023 amounted to $7,051 (2022 – $6,211; 2021 – $5,790). During the year ended December 31, 2023, the Company wrote off inventory of $277 (2022 – $38; 2021 – $1,339) that had expired or was otherwise unusable through cost of goods sold on the consolidated statements of net income (loss) and comprehensive income (loss). |
Property, plant and equipment
Property, plant and equipment | 12 Months Ended |
Dec. 31, 2023 | |
Property, plant and equipment | |
Property, plant and equipment | 7. Property and equipment Cost Computers and equipment Leasehold improvements Right of use assets Total At December 31, 2021 $ 909 $ 182 $ 1,907 $ 2,998 Additions - - 56 56 Disposals - - (70 ) (70 ) Effect of movements in exchange rates 39 1 37 77 At December 31, 2022 $ 948 $ 183 $ 1,930 $ 3,061 Effect of movements in exchange rates (14 ) (1 ) (15 ) (30 ) At December 31, 2023 $ 934 $ 182 $ 1,915 $ 3,031 Accumulated amortization Computers and equipment Leasehold improvements Right of use assets Total At December 31, 2021 $ 431 $ 171 $ 785 $ 1,387 Amortization 158 2 301 461 Effect of movements in exchange rates 16 - 10 26 At December 31, 2022 $ 605 $ 173 $ 1,096 $ 1,874 Amortization 125 2 307 434 Effect of movements in exchange rates (6 ) (1 ) (6 ) (13 ) At December 31, 2023 $ 724 $ 174 $ 1,397 $ 2,295 Carrying amounts Computers and equipment Leasehold improvements Right of use assets Total At December 31, 2022 $ 343 $ 10 $ 834 $ 1,187 At December 31, 2023 $ 210 $ 8 $ 518 $ 736 During the year ended December 31, 2023, amortization of property and equipment totaling $13 and $421 (2022 – $13 and $448; 2021 – $13 and $393) is within selling expenses and general and administrative expenses, respectively, on the consolidated statements of net income (loss) and comprehensive income (loss). |
Intangible assets
Intangible assets | 12 Months Ended |
Dec. 31, 2023 | |
Intangible assets | |
Intangible assets | 8. Intangible assets Cost Licenses Patents and drug approvals Brand names and trademarks Customer list Software Total At December 31, 2021 $ 1,176 $ 24,334 $ 4,549 $ 5,547 $ 446 $ 36,052 Additions - - - - 296 296 Effect of movements in exchange rates 80 1,662 311 379 39 2,471 At December 31, 2022 $ 1,256 $ 25,996 $ 4,860 $ 5,926 $ 781 $ 38,819 Additions - - - - 270 270 Effect of movements in exchange rates (29 ) (610 ) (114 ) (139 ) (20 ) (912 ) At December 31, 2023 $ 1,227 $ 25,386 $ 4,746 $ 5,787 $ 1,031 $ 38,177 Accumulated amortization Licenses Patents and drug approvals Brand names and trademarks Customer list Software Total At December 31, 2021 $ 175 $ 19,123 $ 4,107 $ 1,435 $ - $ 24,840 Amortization 172 589 50 709 74 1,594 Effect of movements in exchange rates 19 1,330 284 126 2 1,761 At December 31, 2022 $ 366 $ 21,042 $ 4,441 $ 2,270 $ 76 $ 28,195 Amortization 178 611 52 735 160 1,736 Effect of movements in exchange rates (12 ) (506 ) (105 ) (68 ) (3 ) (694 ) At December 31, 2023 $ 532 $ 21,147 $ 4,388 $ 2,937 $ 233 $ 29,237 Carrying amounts Licenses Patents and drug approvals Brand names and trademarks Customer list Software Total At December 31, 2022 $ 890 $ 4,954 $ 419 $ 3,656 $ 705 $ 10,624 At December 31, 2023 $ 695 $ 4,239 $ 358 $ 2,850 $ 798 $ 8,940 In September 2019 the Company acquired ownership of ZYPITAMAG ® ® ® ® ® ® The Company had determined there were no indicators of impairment as at December 31, 2023. Intangible assets pertaining to AGGRASTAT ® For the year ended December 31, 2023, amortization of intangible assets totaling $611 (2022 - $589 and 2021 - $1,841) is recorded within cost of goods sold pertaining to the ZYPITAMAG ® |
Goodwill
Goodwill | 12 Months Ended |
Dec. 31, 2023 | |
Goodwill | |
Goodwill | 9. Goodwill Retail and Mail Order Pharmacy At December 31, 2021 $ 2,974 Effects of movements in exchange rates 203 At December 31, 2022 $ 3,177 Effects of movements in exchange rates (75 ) At December 31, 2023 $ 3,102 The Company performed an annual impairment test with respect to the goodwill acquired as part of the Marley Drug acquisition. The recoverable amount of the Retail and Mail Order Pharmacy CGU, in which Marley Drug is included, has been determined based on value in use for the year ended December 31, 2023. (a) Key assumptions used in valuation calculations The calculation of value in use for all the CGUs or group of CGUs is most sensitive to the following assumptions: (i) Discount rate Discount rates reflect the current market assessment of risks specific to each CGU or group of CGUs. The discount rate was estimated based on the weighted average cost of capital calculated based on the Company’s performance relative to its industry. This rate was further adjusted to reflect the market assessment of any risk specific to the CGU or group of CGUs for which future estimates of cash flows have not been adjusted. The discount rate used during the value in use assessment completed at December 31, 2023, was 13.40%. (ii) Operating margin Forecasted operating margins are based on actual operating margins, less operational expenses achieved in the preceding years, plus adjustments to normalize the forecast for any non-reoccurring items. Margins are kept constant over the forecast period, with the exception of adjustments made in relation to inflation in future periods, unless management has started an efficiency improvement process. (iii) Revenue growth rates Revenue growth rates are based on approved budgets, published research, and current customer contracts. Management considers various factors when assessing revenue growth rates used within their assessment, including, but not limited to, changes in customer demographic and attrition of current customer base. The revenue growth rate used during the value in use assessment completed at December 31, 2023 was approximately 2%. |
Royalty obligation
Royalty obligation | 12 Months Ended |
Dec. 31, 2023 | |
Royalty obligation | |
Royalty obligation | 10. Royalty obligation On July 18, 2011, the Company settled its then-existing long‑term debt with Birmingham Associates Ltd. ("Birmingham"), an affiliate of Elliott Associates L.P., in exchange for i) $4,750 in cash; ii) 2,176,003 common shares of the Company; and iii) a royalty on future AGGRASTAT ® ® ® In accordance with the terms of the agreement, if the Company were to dispose of its AGGRASTAT ® The royalty obligation was recorded at its fair value at the date at which the liability was incurred and subsequently measured at amortized cost using the effective interest rate method at each reporting date. On May 1, 2023, the royalty obligation for AGGRASTAT ® |
Lease obligations
Lease obligations | 12 Months Ended |
Dec. 31, 2023 | |
Lease obligations | |
Lease obligations | 11. Lease obligations Effective November 1, 2014, the Company entered into a sub‑lease with GVI Clinical Development Solutions (“GVI - CDS”), a related party as described in note 17(b), to lease office space at a rate of $170 per annum for three years ending October 31, 2017, with an 18-month renewal period available. The lease was amended on May 1, 2016 and increased the leased area covered under the lease agreement at a rate of $212 per annum until October 31, 2019 with an 18-month renewal period available. The leased area covered under the lease was again increased, effective November 1, 2018, at a rate of $306 per annum until the end of the term of the lease. Effective November 1, 2019, the Company modified and extended its sub‑lease with GVI to lease a reduced amount of office space at a rate of $238 per annum for three years ending October 31, 2022 with a 28-month renewal period available. Effective June 1, 2022, the Company modified and extended its sub-lease with GVI to lease a reduced amount of office space at a rate of $222 per annum, ending October 31, 2024. The discount rate used by the Company in calculating the right-of-use asset is 5%. In connection with the acquisition of Marley Drug, the Company acquired a lease obligation and corresponding right-of-use asset. The lease is for Marley Drug’s 3,280 square foot retail space. The original lease was signed in May of 2006 for a period of ten years with two five-year extension periods. An addendum to the lease allowed for the first extension which was used starting April 1, 2017, with the second five-year extension available for an additional five years to April 2027. The current rate in the lease is $87 per annum. The discount rate used by the Company in calculating the lease obligation relating to the right-of-use asset is 3%. Effective June 1, 2022, the Company renewed its lease for Marley Drug at a rate of $97 per annum for a period of five years. The discount rate used by the Company in calculating the lease obligation relating to the right-of-use asset was 5% as part of the lease modification. Incremental borrowing rate % Maturity 2023 2022 Current 3.00 - 5.00 2023 $ 315 $ 346 Non-current 3.00 - 5.00 2024 - 2027 229 503 Lease liability $ 544 $ 849 During the year ended December 31, 2023, the Company paid a total of $353 (2022 - $355) in lease payments, resulting from the lease obligations indicated above. |
Government assistance
Government assistance | 12 Months Ended |
Dec. 31, 2023 | |
Government assistance | |
Government assistance | 12. Government assistance During the year ended December 31, 2023, the Company did not record any government assistance resulting from the Canada Emergency Wage Subsidy (2022 – nil; 2021 - $402). The funding has been recorded as a reduction of the related salary expenditures within general and administrative expenses for the year ended December 31, 2021. |
Capital stock
Capital stock | 12 Months Ended |
Dec. 31, 2023 | |
Capital stock | |
Capital stock | 13. Capital stock (a) Authorized The Company has authorized share capital of an unlimited number of common voting shares, an unlimited number of Class A common shares and an unlimited number of preferred shares. The preferred shares may be issued in one or more series, and the directors may fix, prior to each series issued, the designation, rights, privileges, restrictions and conditions attached to each series of preferred shares. (b) Shares issued and outstanding Shares issued and outstanding are as follows: Number of common shares Amount Balance, December 31, 2021 10,251,313 $ 80,917 Balance, December 31, 2022 10,251,313 $ 80,917 Balance, December 31, 2023 (1) 10,436,313 $ 81,014 (1) (c) Stock option plan The Company has a stock option plan that is administered by the Board of Directors of the Company, with stock options granted to directors, management, employees and consultants as a form of compensation. The number of common shares reserved for issuance of stock options is limited to a maximum of 2,934,403 common shares of the Company at any time. The stock options generally have a maximum term of between five and ten years and vest within a five-year period from the date of grant. Changes in the number of options outstanding during the year ended December 31, 2023 is as follows: Year ended December 31, 2023 Options Weighted average exercise price Balance, beginning of year 638,400 $ 3.05 Granted 1,205,000 1.25 Exercised (185,000 ) 0.30 Forfeited, cancelled or expired (180,700 ) (4.76 ) Balance, end of year 1,477,700 $ 1.72 Options exercisable, end of year 332,700 $ 3.32 (c) Stock option plan (continued): Changes in the number of options outstanding during the years ended December 31, 2022 and 2021 are as follows: Year ended December 31 2022 2021 Options Weighted average exercise price Options Weighted average exercise price Balance, beginning of period 807,150 $ 3.73 1,326,958 $ 3.67 Granted 20,000 1.20 90,000 1.10 Forfeited, cancelled or expired (188,750 ) (5.77 ) (609,808 ) (2.99 ) Balance, end of period 638,400 $ 3.05 807,150 $ 3.73 Options exercisable, end of period 602,400 $ 2.93 706,750 $ 3.49 Options outstanding at December 31, 2023 consist of the following: Range of exercise prices Number outstanding Weighte daverage remaining contractual life Options outstanding weighted average exercise price Number exercisable $ 1.10 60,000 2.58 years $ 1.10 60,000 $1.11 - $1.50 1,165,000 8.99 years $ 1.20 20,000 $1.51 ‑ $3.00 77,700 1.00 years $ 1.90 77,700 $3.01 - $4.95 175,000 0.49 years $ 4.95 175,000 $1.10 ‑ $4.95 1,477,700 7.30 years $ 1.72 332,700 Compensation expense related to stock options granted during the year or from previous periods under the stock option plan for the year ended December 31, 2023 is $288 (2022 – $47; 2021 – $135). The compensation expense was determined based on the fair value of the options at the date of measurement using the Black‑Scholes option pricing model. The expected life of stock options is based on historical data and current expectations and is not necessarily indicative of exercise patterns that may occur. The expected volatility reflects the assumption that the historical volatility over a period similar to the life of the options is indicative of future trends, which may not necessarily be the actual outcome. The compensation expense for the options granted during the years ended December 31, 2023, 2022 and 2021 was determined based on the fair value of the options at the date of measurement using the Black‑Scholes option pricing model with the inputs detailed below: Years ended December 31 2023 2022 2021 Expected option life 4.6 years 4.6 years 4.6 years Risk-free interest rate 2.99 % 2.63 % 0.75 % Dividend yield nil nil nil Expected volatility 60.92 % 73.85 % 69.03 % (d) Per share amounts The following table reflects the calculation of basic and diluted earnings (loss) per share for the years ended December 31, 2023, 2022 and 2021: Year ended December 31 2023 2022 2021 Basic net income (loss) per share $ (0.09 ) $ 0.133 $ (0.07 ) Diluted income (loss) per share $ (0.09 ) $ 0.131 $ (0.07 ) The following table reflects the loss used in the basic and diluted loss per share computations for the years ended December 31, 2023, 2022 and 2021: Year ended December 31 2023 2022 2021 Net profit (loss) $ (922 ) $ 1,365 $ (727 ) The following table reflects the share data used in the denominator of the basic and diluted earnings (loss) per share computations for the years ended December 31, 2023, 2022 and 2021: Year ended December 31 2023 2022 2021 Weighted average shares outstanding for basic earnings (loss) per share 10,436,313 10,251,313 10,251,313 Weighted average shares outstanding for diluted earnings (loss) per share 10,436,313 10,436,313 10,251,313 Effects of dilution from 1,225,000 stock options (2022 – 453,400; 2021 – 807,150) were excluded in the calculation of weighted average shares outstanding for diluted earnings per share for the year ended December 31, 2023 as they are anti-dilutive. |
Income taxes
Income taxes | 12 Months Ended |
Dec. 31, 2023 | |
Income taxes | |
Income taxes | 14. Income taxes The Company recorded income tax expense for the year ended December 31, 2023 totaling $25 (2022 – $20; 2021 – recovery of $32) and did not recognize any deferred income tax expense for the year ended December 31, 2023 (2022 – nil; 2021 - nil). As at December 31, 2023 and 2022, deferred tax assets have not been recognized with respect to the following timing differences. The scientific research and experimental development deferred tax assets expire between 2025 and 2028. As at December 31 2023 2022 Deferred tax assets Scientific research and experimental development $ 3,358 $ 3,358 Non-capital losses 3,308 3,147 Other 430 839 Total deferred tax assets $ 7,096 $ 7,344 The reconciliation of the Canadian statutory rate to the income tax rate applied to the net profit (loss) for the years ended December 31, 2023, 2022 and 2021 to the income tax expense is as follows: Year ended December 31 2023 2022 2021 Profit (loss) for the year Canadian $ (1,654 ) $ (1,217 ) $ (1,195 ) Foreign 732 2,602 436 $ (922 ) $ 1,385 $ (759 ) Year ended December 31 2023 2022 2021 Canadian federal and provincial income taxes at 27% (2022 – 27%; 2021 – 27%) $ 249 $ (374 ) $ 205 Permanent differences and other items 197 274 165 Fair value adjustments 318 ) 100 453 Foreign tax rate in foreign jurisdictions 94 390 (167 ) Change in unrecognized deferred tax assets (247 ) (410 ) (624 ) (Expense) recovery $ (25 ) $ (20 ) $ 32 The foreign tax rate differential is the difference between the Canadian federal and provincial statutory income tax rate and the tax rates in Barbados (5.50%), Ireland (12.50%) and the United States (21.00% - 23.50%) that is applicable to income or losses incurred by the Company's subsidiaries. At December 31, 2023, the Company has the following Canadian losses available for application in future years: 2037 $ 5,275 2040 2,774 2041 969 2042 1,664 2043 498 $ 11,180 At December 31, 2023, the Company has the following Barbados losses available for application in future years: 2028 $ 1,348 2029 3,927 $ 5,275 As at December 31, 2023, the Company has $16 (2022 - $60) included as income taxes payable on its consolidated statements of financial position. |
Finance income (expense)
Finance income (expense) | 12 Months Ended |
Dec. 31, 2023 | |
Finance income (expense) | |
Finance income (expense) | 15. Finance income (expense) During the years ended December 31, 2023, 2022 and 2021 the Company earned finance income (incurred finance expense) as follows: Year ended December 31 2023 2022 2021 Interest income $ 75 $ 10 $ 78 Remeasurement of royalty obligation 37 (169 ) (262 ) Accretion of acquisition payable - (44 ) (96 ) Change in fair value of contingent consideration - - (178 ) Bank charges and other interest (27 ) (26 ) (29 ) Finance expense from lease obligation (20 ) 23 (38 ) $ 65 $ (206 ) $ (525 ) During the years ended December 31, 2023, 2022 and 2021, the Company received (paid) finance income (expense) as follows: Year ended December 31 2023 2022 2021 Interest received $ 75 $ 10 $ 78 Other interest, net and banking fees (27 ) (26 ) (29 ) $ 48 $ (16 ) $ 49 |
Commitments and contingencies
Commitments and contingencies | 12 Months Ended |
Dec. 31, 2023 | |
Commitments and contingencies | |
Commitments and contingencies | 16. Commitments and contingencies (a) Commitments As at December 31, 2023, and in the normal course of business, the Company has obligations to make future payments representing contracts and other commitments that are known and committed as follows: 2024 $ 2,620 $ 2,620 The Company has entered into a manufacturing and supply agreement to purchase a minimum quantity of AGGRASTAT ® ® ® On December 28, 2022, the Company entered into a technology services agreement with its manufacturer of AGGRASTAT ® ® During the year ended December 31, 2023 the Company renewed its business and administration services agreement with GVI - CDS, as described in note 17(b), under which the Company is committed to pay $7 per month or $85 per year for a one-year term. Contracts with contract research organizations are payable over the terms of the associated agreements and clinical trials, and timing of payments is largely dependent on various milestones being met, such as the number of patients recruited, number of monitoring visits conducted, the completion of certain data management activities, trial completion, and other trial-related activities. On October 31, 2017, the Company acquired an exclusive license to sell and market PREXXARTAN ® ® ® (b) Guarantees The Company periodically enters into research agreements with third parties that include indemnification provisions customary in the industry. These guarantees generally require the Company to compensate the other party for certain damages and costs incurred as a result of claims arising from research and development activities undertaken on behalf of the Company. In some cases, the maximum potential amount of future payments that could be required under these indemnification provisions could be unlimited. These indemnification provisions generally survive termination of the underlying agreement. The nature of the indemnification obligations prevents the Company from making a reasonable estimate of the maximum potential amount it could be required to pay. Historically, the Company has not made any indemnification payments under such agreements and no amount has been accrued in the consolidated financial statements with respect to these indemnification obligations. (c) Royalties As a part of the Birmingham debt settlement described in note 10, beginning on July 18, 2011, the Company is obligated to pay a royalty to Birmingham based on future commercial AGGRASTAT ® ® ® ® ® With the acquisition of ZYPITAMAG ® ® ® ® ® (d) Contingencies In the normal course of business, the Company may from time to time be subject to various claims or possible claims. Although management currently believes there are no claims or possible claims that if resolved would either individually or collectively result in a material adverse impact on the Company’s financial position, results of operations, or cash flows, these matters are inherently uncertain and management’s view of these matters may change in the future. As of December 31, 2023, the Company has identified the following potential contingent liability: Telephone Consumer Protection Act (“TCPA) Litigation During the year ended December 31, 2023, a class action claim was filed in Missouri state court against the Company’s subsidiary, with regards to an unsolicited fax advertisement which has been claimed to be in violation of the federal TCPA legislation. At this time, the Company is unable to assess the potential outcome of this litigation, and as a result, has not recorded any provisions for this potential liability as at December 31, 2023. |
Related party transactions
Related party transactions | 12 Months Ended |
Dec. 31, 2023 | |
Related party transactions | |
Related party transactions | 17. Related party transactions (a) Key management personnel compensation Key management personnel are those persons having authority and responsibility for planning, directing and controlling the activities of the Company. The Board of Directors, President and Chief Executive Officer and Chief Financial Officer are key management personnel for all periods. In addition to their salaries, the Company also provides non‑cash benefits and participation in the Stock Option Plan. The following table details the compensation paid to key management personnel: Year ended December 31 2023 2022 2021 Salaries, fees and short-term benefits $ 633 $ 595 $ 662 Share-based payments 164 38 50 $ 797 $ 633 $ 712 As at December 31, 2023, the Company had $10 owing to members of the Company’s Board of Directors (2022 – $12) recorded within accounts payable and accrued liabilities relating to amounts payable to the members of the Company's Board of Directors for services provided. (b) Transactions with related parties Directors and key management personnel control 28% of the voting shares of the Company as at December 31, 2023 (2022 – 28%). During the year ended December 31, 2023, the Company paid GVI-CDS, a company controlled by the Chief Executive Officer, a total of $85 (2022 – $85; 2021 – $85) for business administration services, $222 (2022 – $229; 2021 – $238) in rental costs, $36 (2022 – $34; 2021 – $34) for information technology support services, and $318 (2022 – $254; 2021 – $315) for clinical research services. As described in note 16(a), the business administration services summarized above are provided to the Company through a consulting agreement with GVI-CDS. Research and development services are provided through a consulting agreement with CanAm Bioresearch Inc. ("CanAm"), a company controlled by the Chief Executive Officer. During the year ended December 31, 2023, the Company paid CanAm $7 (2022 – $4; 2021 – $9) for research and development services. These transactions have been measured at the exchange amount, which is the amount of consideration established and agreed to by the related parties. As at December 31, 2023, included in accounts payable and accrued liabilities is $57 (2022 – $15) payable to GVI-CDS. This amount is unsecured, payable on demand and non-interest bearing. (b) Transactions with related parties Effective July 18, 2016, the Company renewed its consulting agreement with its Chief Executive Officer, through A.D. Friesen Enterprises Ltd., a company owned by the Chief Executive Officer, for a term of five years, at a rate of $300 annually, and increasing to $331 annually, effective January 1, 2019. On September 30, 2021, the consulting agreement with A.D. Friesen Enterprises Ltd. was mutually terminated, and superseded with a new consulting agreement with its Chief Executive Officer, through ADF Family Holding Corp. Effective October 1, 2021, the Company signed a consulting agreement with its Chief Executive Officer, through ADF Family Holding Corp., a company owned by the Chief Executive Officer, for a term of 36 months, at a rate of $18 per month. The aforementioned monthly fee shall be reviewed annually on January 1 by the Board of Directors of the Company for each succeeding year during the term of the agreement, and may be adjusted at the sole discretion of the Board of Directors. The Company may terminate the agreement at any time upon 120 days’ written notice. As at December 31, 2023, there are no outstanding amounts (2022 - $23) payable to ADF Family Holding Corp. as a result of this consulting agreement. Any amounts payable to ADF Family Holding Corp are unsecured, payable on demand and non-interest bearing. Effective June 1, 2022, the Company signed a consulting agreement with its Chief Financial Officer, through 10055098 Manitoba Ltd., a company owned by the Chief Financial Officer for a monthly rate of $6, increasing to $9 effective October 1, 2022. The aforementioned fee shall be reviewed annually on January 1. The Company can terminate the agreement with 30 days’ written notice; otherwise, the agreement has an indefinite term. As at December 31, 2023, , there are no outstanding amounts (2022 - $20) payable to 10055098 Manitoba Limited. Any amounts payable to 10055098 Manitoba Ltd. are unsecured, payable on demand and non-interest bearing. |
Expenses by nature
Expenses by nature | 12 Months Ended |
Dec. 31, 2023 | |
Expenses by nature | |
Expenses by nature | 18. Expenses by nature Expenses incurred for the years ended December 31, 2023, 2022 and 2021 are as follows: Year ended December 31 2023 2022 2021 Personnel expenses Salaries, fees and short-term benefits $ 4,170 $ 4,969 $ 4,513 Share‑based payments 288 47 135 4,458 5,016 4,648 Amortization 2,170 2,057 3,132 Research and development 2,101 2,278 1,547 Manufacturing 261 163 249 Inventory material costs 7,051 6,211 5,790 Write-down of inventory 277 38 1,339 Medical affairs 27 117 58 Administration 554 1,375 1,395 Selling and logistics 4,961 3,931 5,114 Professional fees 688 686 565 $ 22,548 $ 21,872 $ 23,837 |
Financial instruments
Financial instruments | 12 Months Ended |
Dec. 31, 2023 | |
Financial instruments | |
Financial instruments | 19. Financial instruments (a) Financial assets and liabilities The Company has determined the estimated fair values of its financial instruments based on appropriate valuation methodologies. The carrying values of current monetary assets and liabilities approximate their fair values due to their relatively short periods to maturity. The royalty obligation and acquisition payable are carried at amortized cost. The investment in Sensible Medical is carried at FVOCI and has a carrying value as at December 31, 2023 and 2022 of one dollar. IFRS 13, Fair Value Measurement · Level 1 – Quoted prices (unadjusted) in active markets for identical assets or liabilities; · Level 2 – Inputs other than quoted prices included within Level 1 that are either directly or indirectly observable; · Level 3 – Unobservable inputs in which little or no market activity exists, thereby requiring an entity to develop its own assumptions about the assumptions that market participants would use in pricing. There were no financial assets or liabilities measured at fair value on the consolidated statement of financial position as at December 31, 2023. The fair value hierarchy of the following financial assets and liabilities on the consolidated statement of financial position as at December 31, 2022 is as follows: Level 1 Level 2 Level 3 Financial liabilities Current portion of royalty obligation $ - $ - $ 179 Current portion of acquisition payable - - 677 Royalty obligation: Acquisition payable: For assets and liabilities that are recognized in the consolidated financial statements on a recurring basis, the Company determines whether transfers have occurred between levels in the hierarchy by reassessing categorization (based on the lowest level input that is significant to the fair value measurement as a whole) at the end of each reporting period. During the years ended December 31, 2023, 2022 and 2021, there were no transfers between Level 1 and Level 2 fair value measurements. (a) Risks arising from financial instruments and risk management The Company's activities expose it to a variety of financial risks: market risk (including foreign exchange and interest rate risks), credit risk and liquidity risk. Risk management is the responsibility of the Company, which identifies, evaluates and, where appropriate, mitigates financial risks. (i) Market risk (a) The Company is exposed to U.S. dollar currency risk through the following U.S. denominated financial assets and liabilities: As at December 31 (Expressed in U.S. Dollars) 2023 2022 Cash and cash equivalents $ 4,786 $ 3,592 Accounts receivable 3,567 4,079 Other assets 57 47 Accounts payable and accrued liabilities (4,876 ) (4,307 ) Current portion of royalty obligation - (132 ) Current portion of acquisition payable - (500 ) Income taxes payable (12 ) (44 ) Current portion of lease obligation (101 ) (92 ) Lease obligation (173 ) (246 ) $ 3,248 $ 2,397 Based on the above net exposures as at December 31, 2023, assuming that all other variables remain constant, a 5% appreciation or deterioration of the Canadian dollar against the U.S. dollar would result in a corresponding increase or decrease, respectively, on the Company's net profit (loss) of approximately $162 (2022 – $162). The Company is also exposed to currency risk on the euro and had an accounts payable balance of €359 (2022 -€369) at December 31, 2023. Based on that exposure, as at December 31, 2023, assuming that all other variables remain constant, a 5% appreciation or deterioration of the Canadian dollar against the euro would result in an increase or decrease, respectively, of $26 (2022 - $27) on the Company’s net profit (loss). (b) (ii) Credit risk Credit risk is the risk of financial loss to the Company if a partner or counterparty to a financial instrument fails to meet its contractual obligation and arises principally from the Company’s cash and accounts receivable. The carrying amounts of the financial assets represents the maximum credit exposure. The Company limits its exposure to credit risk on cash by placing these financial instruments with high‑credit quality financial institutions. The Company is subject to a concentration of credit risk related to its accounts receivable as 94% of the balance of amounts owing are from three customers. The Company has historically had low impairment in regards to its accounts receivable. As at December 31, 2023, none of the outstanding accounts receivable were outside of the normal payment terms. The Company did not record any write-offs during the year ended December 31, 2023 (2022 – $218; 2021 – $305). As at December 31, 2023 and 2022, the expected credit lifetime credit losses for accounts receivable aged as current were nominal amounts. The Company considers a financial asset in default when internal or external information indicates that the Company is unlikely to receive the outstanding contractual amounts in full. A financial asset is written off when there is no reasonable expectation of recovering the contractual cash flows. (iii) Liquidity risk Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they come due. The Company manages its liquidity risk by continuously monitoring forecasted and actual cash flows, as well as anticipated investing and financing activities, and to ensure that it will have sufficient liquidity to meet its liabilities and commitments when due and to fund future operations. The majority of the Company’s accounts payable and accrued liabilities are due within the current operating period. (c) Capital management The Company manages its capital structure and makes adjustments to it, based on the funds available to the Company, in order to continue the business of the Company. The Company, upon approval from its Board of Directors, will balance its overall capital structure through new share and warrant issuances, granting of stock options, the issuance of debt or by undertaking other activities as deemed appropriate under the specific circumstance. The Board of Directors does not establish a quantitative return on capital criteria for management, but rather relies on the expertise of the Company's management to sustain future development of the business. The Company’s objectives when managing capital are to safeguard the Company’s ability to continue as a going concern and to provide capital to pursue the development and commercialization of its products. In the management of capital, the Company includes cash, capital stock, stock options and contributed surplus. The Company manages the capital structure and makes adjustments to it in light of changes in economic conditions and the risk characteristics of the underlying assets. To maintain or adjust the capital structure, the Company may attempt to issue new shares or new debt. At the current stage of the Company's development, in order to maximize its current business activities, the Company does not pay out dividends. Management reviews its capital management approach on an ongoing basis and believes that this approach, given the relative size of the Company, is reasonable. The Company’s overall strategy with respect to capital risk management remains unchanged for the year ended December 31, 2023. |
Determination of fair values
Determination of fair values | 12 Months Ended |
Dec. 31, 2023 | |
Determination of fair values | |
Determination of fair values | 20. Determination of fair values A number of the Company's accounting policies and disclosures require the determination of fair value, for both financial and non‑financial assets and liabilities. Fair values have been determined for measurement and/or disclosure purposes based on the following models. When applicable, further information about the assumptions made in determining fair values is disclosed in the notes specific to that asset or liability. (a) Share-based payment transactions The fair value of the employee share options is measured using the Black‑Scholes option pricing model. Measurement inputs include share price on measurement date, exercise price of the instrument, expected volatility (based on weighted average historical volatility adjusted for changes expected due to publicly available information), weighted average expected life of the instruments (based on historical experience and general option holder behavior), expected dividends, and the risk‑free interest rate (based on government bonds). Service and non‑market performance conditions attached to the transactions are not taken into account in determining fair value. (b) Royalty obligation The royalty obligation is recorded at its fair value at the date at which the liability was incurred and subsequently measured at amortized cost using the effective interest rate method at each reporting date. Estimating fair value for this liability requires determining the most appropriate valuation model, which is dependent on its underlying terms and conditions. This estimate also requires determining expected revenue from AGGRASTAT ® (c) Acquisition payable The acquisition payable liabilities are recorded at their fair value at the date at which the liability was incurred and subsequently measured at amortized cost using the effective interest rate method at each reporting date. Estimating fair value for this liability requires determining the most appropriate valuation model, which is dependent on its underlying terms and conditions. This estimate also requires determining an appropriate discount rate and making assumptions about it. |
Segmented information
Segmented information | 12 Months Ended |
Dec. 31, 2023 | |
Segmented information | |
Segmented information | 21 Segmented information The Company operates under two segments, the marketing and distribution of commercial products and the operation of a retail and mail order pharmacy. Revenue generated from external customers for the years ended December 31, 2023, 2022 and 2021 was 100% from sales to customers in the United States. During the year ended December 31, 2023, 100% of total revenue from the marketing and distribution of commercial products was generated from seven customers. Customer A accounted for 32%, Customer B accounted for 18%, Customer C accounted for 46% and the remaining four customers accounted for approximately 4% of revenue. During the year ended December 31, 2022, 100% of total revenue from the marketing and distribution of commercial products was generated from ten customers. Customer A accounted for 38%, Customer B accounted for 19%, Customer C accounted for 38% and the remaining seven customers accounted for approximately 5% of revenue. During the year ended December 31, 2021, 100% of total revenue from the marketing and distribution of commercial products was generated from seventeen customers. Customer A accounted for 38%, Customer B accounted for 20%, Customer C accounted for 35% and the remaining fourteen customers accounted for approximately 7% of revenue. The Company’s property and equipment, intangible assets and goodwill are located in the following countries: As at December 31 2023 2022 Canada $ 175 $ 392 United States 8,364 9,642 Barbados 4,239 4,954 $ 12,778 $ 14,988 Following the acquisition of Marley Drug, the financial measures reviewed by the Company’s chief operating decision maker are presented separately for the year ended December 31, 2023 and December 31, 2022: For the year ended December 31, 2023 Marketing and Distribution of Commercial Products Retail and Mail Order Pharmacy Total Revenue $ 12,118 $ 9,576 $ 21,694 Cost of goods sold (3,959 ) (3,746 ) (7,705 ) Operating expenses (19,903 ) (4,940 ) (14,843 ) Finance income, net 11 54 65 Foreign exchange loss (108 ) - (108 ) Loss before income taxes $ (1,841 ) $ 944 $ (897 ) For the year ended December 31, 2022 Marketing and Distribution of Commercial Products Retail and Mail Order Pharmacy Total Revenue $ 15,282 $ 7,783 $ 23,065 Cost of goods sold (4,606 ) (2,384 ) (6,990 ) Operating expenses (10,603 ) (4,279 ) (14,882 ) Other income 346 - 346 Finance income (expense), net (219 ) 13 (206 ) Foreign exchange gain 52 - 52 Profit before income taxes $ 252 $ 1,133 $ 1,385 |
Significant accounting policies
Significant accounting policies (Policies) | 12 Months Ended |
Dec. 31, 2023 | |
Significant accounting policies (Policies) | |
Basis of consolidation | These consolidated financial statements include the accounts of the Company and its subsidiaries. Subsidiaries are entities controlled by the Company. Control exists when the Company has power over the investee and when the Company is exposed, or has the rights, to variable returns from the investee. Subsidiaries are included in the consolidated financial results of the Company from the effective date of acquisition up to the effective date of disposition or loss of control and include wholly owned subsidiaries Medicure International Inc., Medicure Pharma Inc., Medicure U.S.A. Inc. and Medicure Pharma Europe Limited. Beginning on December 17, 2020, Marley Drug, Inc., became a subsidiary of Medicure Pharma Inc. and is consolidated with these financial statements. The financial statements of the subsidiaries are prepared for the same reporting period as the parent company, using consistent accounting policies. All intercompany transactions and balances and unrealized gains and losses from intercompany transactions have been eliminated. |
Foreign currency | Items included in the financial statements of each of the Company's consolidated subsidiaries are measured using the currency of the primary economic environment in which the subsidiary operates (the functional currency). The consolidated financial statements are presented in Canadian dollars, which is the Company's functional and presentation currency. Foreign currency transactions are translated into the respective functional currencies of the Company and its subsidiaries using the exchange rates prevailing at the dates of the transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation at period‑end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognized in profit or loss. Non-monetary items that are not carried at fair value are translated using the exchange rates as at the date of the initial transaction. Non-monetary items measured at fair value in a foreign currency are translated using the exchange rates at the date when the fair value is determined. The results and financial position of the Company's foreign operations that have a functional currency different from the Company’s functional and presentation currency are translated into Canadian dollars as follows: (i) (ii) (iii) When a foreign operation is disposed of, the component of other comprehensive income relating to that particular foreign operation is recognized in the consolidated statements of net income and comprehensive income, as part of the gain or loss on sale where applicable. |
Financial instruments | (i) Financial assets Initial recognition and measurement Upon recognition of a financial asset, classification is made based on the business model for managing the asset and the asset’s contractual cash flow characteristics. The financial asset is initially recognized at its fair value and subsequently classified and measured as (i) amortized cost; (ii) fair value through other comprehensive income (“FVOCI”); or (iii) fair value through profit or loss (“FVTPL”). Financial assets are classified as FVTPL if they have not been classified as measured at amortized cost or FVOCI. Upon initial recognition of an equity instrument that is not held-for-trading, the asset is recorded as FVTPL unless the Company irrevocably designates the presentation of subsequent changes in the fair value of such equity instrument as FVOCI. Subsequent measurement The subsequent measurement of financial assets depends on their classification as follows: Financial assets measured at amortized cost A financial asset is subsequently measured at amortized cost, using the effective interest method and net of any impairment allowance, if the asset is held within a business whose objective is to hold assets in order to collect contractual cash flows, and the contractual terms of the financial asset give rise, on specified dates, to cash flows that are solely payments of principal and interest. Cash and cash equivalents, accounts receivable and other assets are classified within this category. Financial assets at FVTPL Financial assets measured at FVTPL are carried in the consolidated statements of financial position at fair value with changes in fair value therein recognized in the consolidated statement of net income (loss) and comprehensive income (loss). There are presently no assets classified within this category. Financial assets at FVOCI Financial assets measured at FVOCI are carried in the statement of financial position at fair value with changes in fair value therein recognized in the statement of consolidated statement of net loss and comprehensive loss. The investment in Sensible Medical was designated within this category. (ii) Financial liabilities Initial recognition and measurement The Company recognizes a financial liability on the trade date in which it becomes a party to the contractual provisions of the instrument at fair value plus any directly attributable costs. Financial liabilities are subsequently measured at amortized cost or FVTPL, and are not subsequently reclassified. The Company’s financial liabilities are accounts payable and accrued liabilities, royalty obligation and acquisition payable which are recognized on an amortized cost basis. Financial liabilities measured at FVTPL include contingent consideration resulting from business combinations as defined by IFRS 9. The royalty obligation was recorded at its fair value at the date at which the liability was incurred and subsequently measured at amortized cost using the effective interest rate method at each reporting date. Estimating fair value for this liability required determining the most appropriate valuation model, which was dependent on its underlying terms and conditions. This estimate also required determining expected revenue from AGGRASTAT ® The acquisition payable liabilities were recorded at their fair value at the date at which the liability was incurred and subsequently measured at amortized cost using the effective interest rate method at each reporting date. Estimating fair value for these liabilities required determining an appropriate discount rate. Contingent consideration resulting from a business combination is valued at fair value at the acquisition date as part of the business combination and subsequently fair valued as described in the business combination policy below. (iii) Derecognition A financial asset or, where applicable a part of a financial asset or part of a group of similar financial assets is derecognized when the contractual rights to receive cash flows from the asset have expired, or the Company has transferred its rights to receive cash flows from the asset or has assumed an obligation to pay the received cash flows in full without material delay to a third party under a “pass-through” arrangement; and either (a) the Company has transferred substantially all the risks and rewards of the asset, or (b) the Company has neither transferred nor retained substantially all the risks and rewards of the asset, but has transferred control of the asset. A financial liability is derecognized when the obligation under the liability is discharged or cancelled or expires. When an existing financial liability is replaced by another from the same lender on substantially different terms, or the terms of an existing liability are substantially modified, such an exchange or modification is treated as a derecognition of the original liability and the recognition of a new liability, and the difference in the respective carrying amounts is recognized in the consolidated statements of net income (loss) and comprehensive income (loss). (iv) Offsetting of financial instruments Financial assets and financial liabilities are offset, and the net amount reported in the statement of financial position if, and only if, there is a currently enforceable legal right to offset the recognized amounts and there is an intention to settle on a net basis, or to realize the assets and settle the liabilities simultaneously. (v) Fair value of financial instruments Fair value is determined based on the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. Fair value is measured using the assumptions that market participants would use when pricing an asset or liability. Typically, fair value is determined by using quoted prices in active markets for identical or similar assets or liabilities. When quoted prices in active markets are not available, fair value is determined using valuation techniques that maximize the use of observable inputs. When observable valuation inputs are not available, significant judgment is required through determining the valuation technique to apply, the valuation techniques such as discounted cash flow analysis and selecting inputs. The use of alternative valuation techniques or valuation inputs may result in a different fair value. (vi) Transaction costs Transaction costs for all financial instruments measured at amortized cost, the transaction costs are included in the initial measurement of the financial asset or financial liability and are amortized using the effective interest rate method over a period that corresponds with the term of the financial instruments. Transaction costs for financial instruments classified as FVTPL are recognized as an expense in professional fees, in the period the cost was incurred. (vii) Embedded derivatives For financial liabilities measured at amortized cost, under certain conditions, an embedded derivative must be separated from its host contract and accounted for as a derivative. An embedded derivative causes some or all of the cash flows that otherwise would be required by the contract to be modified according to a specified interest rate, financial instrument price, commodity price, foreign exchange rate, index of prices or rates, a credit rating or credit index, or other variable, provided in the case of a non-financial variable that the variable is not specific to a party to the contract. For financial assets at FVTPL, any embedded derivatives are not separated from its host contract. |
Impairment of financial assets | An “expected credit loss” impairment model applies to financial assets which requires a loss allowance to be recorded on financial assets measured at amortized cost based on their expected credit losses. An estimate is made to determine the present value of future cash flows associated with the asset, and, if required, an impairment loss is recorded. The impairment loss reduces the carrying value of the impaired financial asset to the value of the estimated present value of the future cash flows associated with the asset, discounted at the financial asset’s original effective interest rate either directly or through the use of an allowance account and the resulting impairment loss is recorded in profit or loss. The Company considers a financial asset in default when internal or external information indicates that the Company is unlikely to receive the outstanding contractual amounts in full. A financial asset is written off when there is no reasonable expectation of recovering the contractual cash flows. For accounts receivable, the Company applies the simplified approach in calculating expected credit losses. Therefore, the Company does not track changes in credit risk, but instead recognizes a loss allowance based on lifetime expected credit losses at each reporting date. The Company has established a provision matrix that is based on its historical credit loss experience, adjusted for forward-looking factors specific to the debtors and the economic environment. Impairment losses on financial assets carried at amortized cost are reversed in subsequent periods if the amount of the loss decreases and the decrease can be related objectively to an event occurring after the impairment was recognized. |
Revenue from contracts with customers | As of December 31, 2023, excluding Marley Drug, the Company has two commercially available products that generated revenue for the year ended December 31, 2023, AGGRASTAT ® ® ® ® Sales are made subject to certain discounts available for prompt payment, volume discounts, rebates or chargebacks. Revenue from these sales is recognized based on the price specified per the pricing terms of the sales invoices, net of the estimated discounts, rebates or chargebacks. Variable consideration is based on historical information, using the expected value method. Revenue is only recognized to the extent that it is highly probable that a significant reversal will not occur. A liability is included within accounts payable and accrued liabilities and is measured for expected payments that will be made to the customers for the discounts in which they are entitled. Sales do not contain an element of financing as sales are made with credit terms within the normal operating cycle of the date of the invoice, which is consistent with market practice. Through Marley Drug, the Company operates a retail pharmacy and mail order pharmacy business selling pharmaceuticals directly to end users, being individual patients. Revenue for in-store sales is recognized upon payment by the customer. This is the point where all performance obligations have been met in regards to the product sold. Revenue for mail order sales is recognized upon the shipment of the products to the customer, generally at the time the product is picked up from the Company’s premises by the carrier. This is the point where all performance obligations have been met in regards to the product sold. |
Cash and cash equivalents | The Company considers all liquid investments purchased with a maturity of three months or less at acquisition to be cash and cash equivalents, which are carried and classified at amortized cost. |
Inventories | Inventories consist of unfinished product (raw material in the form of active pharmaceutical ingredients and packaging materials) and finished commercial product, which are available for sale either to wholesale, pharmacy and hospital customers or through Marley Drug direct to patients, and are measured at the lower of cost and net realizable value. The cost of inventories is based on the first‑in, first‑out principle, and includees expenditures incurred in acquiring the inventories, production or conversion costs and other costs incurred in bringing them to their existing location and condition. Inventories are written down to net realizable value when the cost of inventories is estimated to be unrecoverable due to obsolescence, damage, or declining selling prices. Net realizable value is the estimated selling price in the ordinary course of business, less the estimated costs of completion and selling expenses. When the circumstances that previously caused inventories to be written down below cost no longer exist, or when there is clear evidence of an increase in selling prices, the amount of the write-down previously recorded is reversed. |
Property and equipment | (i) Recognition and measurement Items of property and equipment are measured at cost less accumulated amortization and accumulated impairment losses and reversals. When parts of an item of property and equipment have different useful lives, they are accounted for as separate items (major components) of property and equipment. The costs of the day‑to‑day servicing of property and equipment are recognized in the consolidated statements of net income (loss) and comprehensive income (loss) in the period in which they are incurred. (ii) Amortization Amortization is recognized in profit or loss over the estimated useful lives of each part of an item of property and equipment in a manner that most closely reflects the expected pattern of consumption of the future economic benefits embodied in the asset. The estimated useful lives for the current and comparative periods are as follows: Asset Basis Rate Computers, pharmacy equipment, office equipment, furniture and fixtures Straight-line 20% to 25% Leasehold improvements Straight-line Term of lease Right-of-use assets Straight-line Term of lease Amortization methods, useful lives and residual values are reviewed at each period end and adjusted if appropriate. |
Intangible assets | Intangible assets that are acquired separately are measured at cost less accumulated amortization and 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. Product licenses are amortized on a straight-line basis over the contractual term of the acquired license. Pharmacy licenses are amortized on a straight-line basis over their estimated useful life of approximately seven years. Patents and drug approvals are amortized on a straight‑line basis over the legal life of the respective patent, ranging from five to twenty years, or its economic life, if shorter. Brand names are amortized on a straight-line basis over the estimated economic life of the brand name estimated at ten years. Trademarks are amortized on a straight‑line basis over the legal life of the respective trademark, being ten years, or its economic life, if shorter. Customer lists are amortized on a straight‑line basis over a period of seven to twelve years. Amortization on product licenses commences when the intangible asset is available for use, which would typically be in connection with the commercial launch of the associated product under the license. Following initial recognition, intangible assets are carried at cost less accumulated amortization and accumulated impairment losses. The costs of servicing the Company's patents and trademarks are expensed as incurred. The amortization method and amortization period of an intangible asset with a finite useful life are reviewed at least annually. Changes in the expected useful life or the expected pattern of consumption of future economic benefits embodied in the asset are accounted for by changing the amortization period or method, as appropriate, and are treated as changes in accounting estimates in the consolidated statements of net income (loss) and comprehensive income (loss). |
Research and development | Expenditure on research activities, undertaken with the prospect of gaining new scientific or technical knowledge and understanding, is recognized in profit or loss as incurred. Development activities involve a plan or design for the production of new or substantially improved products and processes. Development expenditures are capitalized only if development costs can be measured reliably, the product or process is technically and commercially feasible, future economic benefits are probable, and the Company intends to and has sufficient resources to complete development and to use or sell the asset. No development costs have been capitalized to date. Research and development expenses include all direct and indirect operating expenses supporting the products in development. Clinical trial expenses are a component of the Company’s research and development costs. These expenses include fees paid to contract research organizations, clinical sites, and other organizations who conduct research and development activities on the Company’s behalf. The amount of clinical trial expenses recognized in a period related to clinical agreements are based on estimates of the work performed using an accrual basis of accounting. These estimates incorporate factors such as patient enrolment, services provided, contractual terms, and prior experience with similar contracts. |
Government assistance | Government assistance, in the form of grants or the Canada Emergency Wage Subsidy, is recognized at fair value where there is reasonable assurance that the grant will be received and all attaching conditions will be complied with. Government assistance toward current expenses is recorded as a reduction of the related expenses in the period the expenses are incurred. Government assistance towards property and equipment is deducted from the cost of the related property and equipment. The benefits of investment tax credits for scientific research and experimental development expenditures ("SR&ED") incurred directly by the Company are recognized in the period the qualifying expenditure is made, provided there is reasonable assurance of recoverability. SR&ED investment tax credits receivable are recorded at their net realizable value. |
Impairment of non-financial assets | The Company assesses at each reporting period whether there is an indication that a non‑financial asset may be impaired. An impairment loss is recognized when the carrying amount of an asset, or its cash-generating unit (“CGU”), exceeds its recoverable amount. Impairment losses are recognized in net profit (loss) and comprehensive profit (loss). A CGU is the smallest identifiable group of assets that generates cash inflows that are largely independent of the cash inflows from other assets or groups of assets. The recoverable amount is the greater of the asset's or CGU's fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre‑tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset or CGU. In determining fair value less costs to sell, an appropriate valuation model is used. For an asset that does not generate largely independent cash inflows, the recoverable amount is determined for the CGU to which the asset belongs. For assets other than goodwill, impairment losses recognized in prior periods are assessed at each reporting date for any indications that the loss has decreased or no longer exists. An impairment loss is reversed if there has been a change in the estimates used to determine the recoverable amount. An impairment loss is reversed only to the extent that the asset's carrying amount does not exceed the carrying amount that would have been determined, net of amortization, if no impairment loss had been recognized. Goodwill is tested for impairment annually and when circumstances indicate that the carrying value may be impaired. Impairment is determined for goodwill by assessing the recoverable amount of each CGU to which the goodwill relates. When the recoverable amount of the CGU is less than its carrying amount, an impairment loss is recognized. Impairment losses relating to goodwill are not reversed in future periods. |
Employee benefits | (i) Short-term employee benefits Short‑term employee benefit obligations are measured on an undiscounted basis and are expensed as the related service is provided. (ii) Share-based payment transactions The grant date fair value of share‑based payment awards granted to employees is recognized as a personnel expense, with a corresponding increase in equity, over the period that the employees unconditionally become entitled to the awards. The amount recognized as an expense is adjusted to reflect the number of awards for which the related service and non‑market vesting conditions are expected to be met, such that the amount ultimately recognized as an expense is based on the number of awards that do meet the related service and non‑market performance conditions at the vesting date. For share‑based payment awards with non‑vesting conditions, the grant date fair value of the share‑based payment is measured to reflect such conditions and there is no true‑up for differences between expected and actual outcomes. Share‑based payment arrangements in which the Company receives goods or services as consideration for its own equity instruments are accounted for as equity‑settled share‑based payment transactions. In situations where equity instruments are issued and some or all of the goods or services received by the entity as consideration cannot be specifically identified, they are measured at fair value of the share‑based payment. Where the terms of an equity-settled transaction award are modified, the minimum expense recognized is the expense as if the terms had not been modified, if the original terms of the award are met. An additional expense is recognized for any modification that increases the total fair value of the share-based payment transaction or is otherwise beneficial to the employee as measured at the date of modification. Where an equity-settled award is cancelled, it is treated as if it vested on the date of the cancellation and any expense not yet recognized for the award (being the total expense as calculated at the grant date) is recognized immediately. This includes any awards where vesting conditions within the control of either the Company or the employee are not met. However, if a new award is substituted for the cancelled award, and designated as a replacement award on the date that it is granted, the cancelled award and new awards are treated as if they were a modification of the original awards. |
Finance income and finance costs | Finance costs comprise interest expense on borrowings, which are recognized in net profit (loss) and comprehensive profit (loss) using the effective interest rate method and accretion on the royalty obligation, offset by any finance income, which consists of interest income on funds invested and is recognized as it accrues in net income and comprehensive income, using the effective interest rate method. Foreign currency gains and losses are reported on a net basis. |
Income taxes | The Company and its subsidiaries are generally taxable under the statutes of their country of incorporation. Income tax expense comprises current and deferred taxes. Current taxes and deferred taxes are recognized in profit or loss except to the extent that they relate to a business combination, or items recognized directly in equity or in other comprehensive income. Current taxes are the expected tax receivable or payable on the taxable income or loss for the year, using tax rates enacted or substantively enacted at the reporting date, and any adjustment to tax receivable or payable in respect of previous years. The Company follows the liability method of accounting for deferred taxes. Under this method, deferred taxes are recognized in respect of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for taxation purposes. Deferred taxes are not recognized for the following temporary differences: the initial recognition of assets or liabilities in a transaction that is not a business combination and that affects neither accounting nor taxable profit or loss, and differences relating to investments in subsidiaries and jointly controlled entities to the extent that it is probable that they will not reverse in the foreseeable future. In addition, deferred taxes are not recognized for taxable temporary differences arising on the initial recognition of goodwill. Deferred taxes are measured at the tax rates that are expected to be applied to temporary differences when they reverse, based on the tax laws that have been enacted or substantively enacted by the reporting date. Deferred tax assets and liabilities are offset if there is a legally enforceable right to offset current tax assets and liabilities, and they relate to income taxes levied by the same tax authority on the same taxable entity, or on different tax entities, but they intend to settle current tax assets and liabilities on a net basis or their tax assets and liabilities will be realized simultaneously. A deferred tax asset is recognized for unused tax losses, tax credits and deductible temporary differences, to the extent that it is probable that future taxable profits will be available against which they can be utilized. Deferred tax assets are reviewed at each reporting date and are reduced to the extent that it is no longer probable that the related tax benefit will be realized. The Company has provided for income taxes, including the impacts of tax legislation in various jurisdictions, in accordance with guidance issued by accounting regulatory bodies, the Canada Revenue Agency, the U.S. Internal Revenue Service, the Barbados Revenue Authority, as well as other state and local governments through the date of the issuance of these consolidated financial statements. Additional guidance and interpretations can be expected and such guidance, if any, could impact future results. While management continues to monitor these matters, the ultimate impact, if any, as a result of the application of any guidance issued in the future cannot be determined at this time. The Company and its subsidiaries file federal income tax returns in Canada, the United States, Barbados and other foreign jurisdictions, as well as various provinces and states in Canada and the United States, respectively. Uncertainties exist with respect to the interpretation of complex tax regulations, changes in tax laws and the amount and timing of future taxable income. Given the Company operates within a complex structure internationally, differences arising between the actual results and the assumptions made, or future changes to such assumptions, could necessitate future adjustments to taxable income and expenses recorded. The Company establishes provisions, based on reasonable estimates, for possible consequences of audits by the tax authorities of the respective countries in which it operates. The amount of such provisions are based on various factors, such as interpretations of tax regulations by each taxable entity and the responsible tax authority. The Company and its subsidiaries have open tax years, primarily from 2011 to 2023, with significant taxing jurisdictions, including Canada, the United States and Barbados. These open years contain certain matters that could be subject to differing interpretations of applicable tax laws and regulations and tax treaties, as they relate to the amount, timing or inclusion of revenues and expenses, or the sustainability of income tax positions of the Company and its subsidiaries. Certain of these tax years may remain open indefinitely. Such differences of interpretation may arise on a wide variety of issues, depending on the conditions prevailing in the respective company’s domicile. As the Company assesses the probability for litigation and subsequent cash outflow with respect to taxes as remote, no contingent liability has been recognized. Tax benefits acquired as part of a business combination, but not satisfying the criteria for separate recognition at that date, would be recognized subsequently if information about facts and circumstances changed. The adjustment would either be treated as a reduction to goodwill if it occurred during the measurement period or in profit or loss, when it occurs subsequent to the measurement period. |
Earnings per share | The Company presents basic earnings per share ("EPS") data for its common voting shares. Basic EPS is calculated by dividing the profit or loss attributable to common voting shareholders of the Company by the weighted average number of common voting shares outstanding during the period, adjusted for the Company's own shares held. Diluted EPS is computed similar to basic EPS except that the weighted average shares outstanding are increased to include additional shares for the assumed exercise of stock options and warrants, if dilutive. The number of additional shares is calculated by assuming that outstanding stock options and warrants were exercised and that the proceeds from such exercise were used to acquire common shares at the average market price during the reporting periods. |
Business combinations and goodwill | Business combinations are accounted for using the acquisition method. The consideration for an acquisition is measured at the fair values of the assets transferred, the liabilities assumed and the equity interests issued at the acquisition date. Transaction costs that are incurred in connection with a business combination, other than costs associated with the issuance of debt or equity securities, are expensed as incurred. Identified assets acquired and liabilities and contingent liabilities assumed are measured initially at fair values at the date of acquisition Contingent consideration is measured at fair value on acquisition date and is included as part of the consideration transferred. The fair value of the contingent consideration liability is remeasured at each reporting date with the corresponding gain or loss being recognized in profit or loss. Goodwill is initially measured at cost, being the excess of fair value of the cost of the business combinations over the Company’s share in the net fair value of the acquiree’s identifiable assets, liabilities and contingent liabilities. Any negative difference is recognized directly in the consolidated statements of net income (loss) and comprehensive income (loss). If the fair values of the assets, liabilities and contingent liabilities can only be calculated on a provisional basis, the business combination is recognized using provisional values. Any adjustments resulting from the completion of the measurement process are recognized within twelve months of the date of the acquisition. |
Leases | At inception of a contract, the Company must assess whether a contract is, or contains, a lease. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset over a period of time in exchange for consideration. The Company must assess whether the contract involves the use of an identified asset, whether it has the right to obtain substantially all of the economic benefits from the use of the asset during the term of the contract and if it has the right to direct the use of the asset. As a lessee, the Company recognizes a right-of-use asset and a lease liability at the commencement date of the lease. (i) Right-of-use asset The right-of-use asset is initially measured at cost, which consists of the initial amount of the lease liability adjusted for any lease payments made and any initial direct costs incurred at or before the commencement date, plus any decommissioning and restoration costs, less any lease incentives received. The right-of-use asset is subsequently amortized from the commencement date to the earlier of the end of the lease term, or the end of the useful life of the asset. In addition, the right-of-use asset may be reduced due to impairment losses, if any, and adjusted for certain re-measurements of the lease liability. (ii) Lease liability A lease liability is initially measured at the present value of the lease payments that are not paid at the commencement date discounted by the interest rate implicit in the lease or, if that rate cannot be readily determined, the incremental borrowing rate. The lease liability is subsequently measured at amortized cost using the effective interest method. Lease payments included in the measurement of the lease liability comprise fixed payments; variable lease payments that depend on an index or a rate; amounts expected to be payable under any residual value guarantee; the exercise price under any purchase option that the Company would be reasonably certain to exercise; lease payments in any optional renewal period if the Company is reasonably certain to exercise an extension option; and penalties for any early termination of a lease unless the Company is reasonably certain not to terminate early. The Company has elected to not include non-lease components related to premises leases in the determination of the lease liability. The Company has elected not to recognize right-of-use assets and lease liabilities for short-term leases that have a lease term of twelve months or less and leases of low-value assets. The lease payments associated with these leases are charged directly to income on a straight-line basis over the lease term. (iii) Estimating the IBR The Company cannot readily determine the interest rate implicit in its lease; therefore, it uses its IBR to measure lease liabilities. The IBR is the rate of interest that the Company would have to pay to borrow over a similar term, and with a similar security, the funds necessary to obtain an asset of a similar value to the right-of-use asset in a similar economic environment. The IBR therefore reflects what the Company “would have to pay,” which requires estimation when no observable rates are available or when they need to be adjusted to reflect the terms and conditions of the lease. The Company estimates the IBR using observable inputs (such as market interest rates) when available and is required to make certain entity-specific estimates (such as the subsidiary’s stand-alone credit rating). |
Adoption of new accounting policies | Amendments to IAS 1, Presentation of Financial Statements [“IAS 1”] and IFRS Practice Statement [“PS”] 2, Making Materiality Judgments In February 2021, amendments were issued to IAS 1 and IFRS PS 2, which provide guidance and examples to help entities apply materiality judgment to accounting policy disclosures. Specifically, the amendments aim to: · Replace the requirement for entities to disclose their “significant” accounting policies with a requirement to disclose their “material” accounting policies; and · To add guidance on how to apply the concept of materiality in making decisions about accounting policy disclosures. These amendments are effective for annual periods beginning on or after January 1, 2023. The Company’s adoption of these amendments did not have a material impact on the Company’s consolidated financial statements. Amendments to IAS 8, Accounting Policies, Changes in Accounting Estimates and Errors [“IAS 8”] In February 2021, amendments were issued to IAS 8, in which it introduces a new definition of “accounting estimates.” The amendments clarify the distinction between changes in accounting estimates and changes in accounting policies and the correction of errors. Also, they clarify how entities use measurement techniques and inputs to develop accounting estimates. These amendments are effective for annual periods beginning on or after January 1, 2023. The Company’s adoption of these amendments did not have a material impact on the Company’s consolidated financial statements. |
New standard not yet adopted | Amendments to International Accounting Standard (“IAS”) 1: In January 2020 and October 2022, amendments were issued to IAS 1, which provide requirements for classifying liabilities as current or non-current. Specifically, the amendments clarify: · What is meant by a right to defer settlement; · That a right to defer must exist at the end of the reporting period; · That classification is unaffected by the likelihood that an entity will exercise its deferral right; · That only if an embedded derivative in a convertible liability is itself an equity instrument would the terms of a liability not impact its classification; and · Disclosures The amendments must be applied retrospectively for annual reports beginning after January 1, 2024. The Company does not expect the adoption of this standard to have a material impact on its consolidated financial statements. |
Material accounting policies (T
Material accounting policies (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Schedule of estimated useful lives of property, plant and equipment | Asset Basis Rate Computers, pharmacy equipment, office equipment, furniture and fixtures Straight-line 20% to 25% Leasehold improvements Straight-line Term of lease Right-of-use assets Straight-line Term of lease |
Accounts receivable (Tables)
Accounts receivable (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Accounts receivable | |
Schedule of accounts receivable | As at December 31 2023 2022 Trade accounts receivable $ 4,426 $ 5,525 Other accounts receivable 368 110 $ 4,794 $ 5,635 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Inventories | |
Schedule of inventories | As at December 31 2023 2022 Finished commercial product available for sale $ 2,048 $ 2,365 Finished retail pharmacy product available for sale 306 267 Unfinished product and packaging materials 546 589 $ 2,900 $ 3,221 |
Property, plant and equipment (
Property, plant and equipment (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Property, plant and equipment | |
Schedule of property, plant and equipment | Cost Computers and equipment Leasehold improvements Right of use assets Total At December 31, 2021 $ 909 $ 182 $ 1,907 $ 2,998 Additions - - 56 56 Disposals - - (70 ) (70 ) Effect of movements in exchange rates 39 1 37 77 At December 31, 2022 $ 948 $ 183 $ 1,930 $ 3,061 Effect of movements in exchange rates (14 ) (1 ) (15 ) (30 ) At December 31, 2023 $ 934 $ 182 $ 1,915 $ 3,031 Accumulated amortization Computers and equipment Leasehold improvements Right of use assets Total At December 31, 2021 $ 431 $ 171 $ 785 $ 1,387 Amortization 158 2 301 461 Effect of movements in exchange rates 16 - 10 26 At December 31, 2022 $ 605 $ 173 $ 1,096 $ 1,874 Amortization 125 2 307 434 Effect of movements in exchange rates (6 ) (1 ) (6 ) (13 ) At December 31, 2023 $ 724 $ 174 $ 1,397 $ 2,295 Carrying amounts Computers and equipment Leasehold improvements Right of use assets Total At December 31, 2022 $ 343 $ 10 $ 834 $ 1,187 At December 31, 2023 $ 210 $ 8 $ 518 $ 736 |
Intangible assets (Tables)
Intangible assets (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Intangible assets | |
Schedule of intangible assets | Cost Licenses Patents and drug approvals Brand names and trademarks Customer list Software Total At December 31, 2021 $ 1,176 $ 24,334 $ 4,549 $ 5,547 $ 446 $ 36,052 Additions - - - - 296 296 Effect of movements in exchange rates 80 1,662 311 379 39 2,471 At December 31, 2022 $ 1,256 $ 25,996 $ 4,860 $ 5,926 $ 781 $ 38,819 Additions - - - - 270 270 Effect of movements in exchange rates (29 ) (610 ) (114 ) (139 ) (20 ) (912 ) At December 31, 2023 $ 1,227 $ 25,386 $ 4,746 $ 5,787 $ 1,031 $ 38,177 Accumulated amortization Licenses Patents and drug approvals Brand names and trademarks Customer list Software Total At December 31, 2021 $ 175 $ 19,123 $ 4,107 $ 1,435 $ - $ 24,840 Amortization 172 589 50 709 74 1,594 Effect of movements in exchange rates 19 1,330 284 126 2 1,761 At December 31, 2022 $ 366 $ 21,042 $ 4,441 $ 2,270 $ 76 $ 28,195 Amortization 178 611 52 735 160 1,736 Effect of movements in exchange rates (12 ) (506 ) (105 ) (68 ) (3 ) (694 ) At December 31, 2023 $ 532 $ 21,147 $ 4,388 $ 2,937 $ 233 $ 29,237 Carrying amounts Licenses Patents and drug approvals Brand names and trademarks Customer list Software Total At December 31, 2022 $ 890 $ 4,954 $ 419 $ 3,656 $ 705 $ 10,624 At December 31, 2023 $ 695 $ 4,239 $ 358 $ 2,850 $ 798 $ 8,940 |
Goodwill (Tables)
Goodwill (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Goodwill | |
Schedule of goodwill | Retail and Mail Order Pharmacy At December 31, 2021 $ 2,974 Effects of movements in exchange rates 203 At December 31, 2022 $ 3,177 Effects of movements in exchange rates (75 ) At December 31, 2023 $ 3,102 |
Lease obligations (Tables)
Lease obligations (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Lease obligations | |
Summary of lease liabilities | Incremental borrowing rate % Maturity 2023 2022 Current 3.00 - 5.00 2023 $ 315 $ 346 Non-current 3.00 - 5.00 2024 - 2027 229 503 Lease liability $ 544 $ 849 |
Capital stock (Tables)
Capital stock (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Capital stock | |
Schedule of shares issued and outstanding | Number of common shares Amount Balance, December 31, 2021 10,251,313 $ 80,917 Balance, December 31, 2022 10,251,313 $ 80,917 Balance, December 31, 2023 (1) 10,436,313 $ 81,014 |
Schedule of changes in stock options | Year ended December 31, 2023 Options Weighted average exercise price Balance, beginning of year 638,400 $ 3.05 Granted 1,205,000 1.25 Exercised (185,000 ) 0.30 Forfeited, cancelled or expired (180,700 ) (4.76 ) Balance, end of year 1,477,700 $ 1.72 Options exercisable, end of year 332,700 $ 3.32 Year ended December 31 2022 2021 Options Weighted average exercise price Options Weighted average exercise price Balance, beginning of period 807,150 $ 3.73 1,326,958 $ 3.67 Granted 20,000 1.20 90,000 1.10 Forfeited, cancelled or expired (188,750 ) (5.77 ) (609,808 ) (2.99 ) Balance, end of period 638,400 $ 3.05 807,150 $ 3.73 Options exercisable, end of period 602,400 $ 2.93 706,750 $ 3.49 |
Schedule of contractual life of options outstanding | Range of exercise prices Number outstanding Weighte daverage remaining contractual life Options outstanding weighted average exercise price Number exercisable $ 1.10 60,000 2.58 years $ 1.10 60,000 $1.11 - $1.50 1,165,000 8.99 years $ 1.20 20,000 $1.51 ‑ $3.00 77,700 1.00 years $ 1.90 77,700 $3.01 - $4.95 175,000 0.49 years $ 4.95 175,000 $1.10 ‑ $4.95 1,477,700 7.30 years $ 1.72 332,700 |
Schedule of fair value of the options using the Black-Scholes option pricing model | Years ended December 31 2023 2022 2021 Expected option life 4.6 years 4.6 years 4.6 years Risk-free interest rate 2.99 % 2.63 % 0.75 % Dividend yield nil nil nil Expected volatility 60.92 % 73.85 % 69.03 % |
Schedule of calculation of basic and diluted earnings per share | Year ended December 31 2023 2022 2021 Basic net income (loss) per share $ (0.09 ) $ 0.133 $ (0.07 ) Diluted income (loss) per share $ (0.09 ) $ 0.131 $ (0.07 ) |
Schedule of basic and diluted earnings per share | Year ended December 31 2023 2022 2021 Net profit (loss) $ (922 ) $ 1,365 $ (727 ) Year ended December 31 2023 2022 2021 Weighted average shares outstanding for basic earnings (loss) per share 10,436,313 10,251,313 10,251,313 Weighted average shares outstanding for diluted earnings (loss) per share 10,436,313 10,436,313 10,251,313 |
Income taxes (Tabless)
Income taxes (Tabless) | 12 Months Ended |
Dec. 31, 2023 | |
Income taxes | |
Schedule of deferred tax assets not recognized | As at December 31 2023 2022 Deferred tax assets Scientific research and experimental development $ 3,358 $ 3,358 Non-capital losses 3,308 3,147 Other 430 839 Total deferred tax assets $ 7,096 $ 7,344 |
Schedule of reconciliation of statutory rate to the income tax rate applied to the net (loss) income | Year ended December 31 2023 2022 2021 Profit (loss) for the year Canadian $ (1,654 ) $ (1,217 ) $ (1,195 ) Foreign 732 2,602 436 $ (922 ) $ 1,385 $ (759 ) Year ended December 31 2023 2022 2021 Canadian federal and provincial income taxes at 27% (2022 – 27%; 2021 – 27%) $ 249 $ (374 ) $ 205 Permanent differences and other items 197 274 165 Fair value adjustments 318 ) 100 453 Foreign tax rate in foreign jurisdictions 94 390 (167 ) Change in unrecognized deferred tax assets (247 ) (410 ) (624 ) (Expense) recovery $ (25 ) $ (20 ) $ 32 |
Schedule of losses available for application in future years | 2037 $ 5,275 2040 2,774 2041 969 2042 1,664 2043 498 $ 11,180 2028 $ 1,348 2029 3,927 $ 5,275 |
Finance income (expense) (Table
Finance income (expense) (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Finance income (expense) | |
Schedule of company's incurred finance income (expense) | Year ended December 31 2023 2022 2021 Interest income $ 75 $ 10 $ 78 Remeasurement of royalty obligation 37 (169 ) (262 ) Accretion of acquisition payable - (44 ) (96 ) Change in fair value of contingent consideration - - (178 ) Bank charges and other interest (27 ) (26 ) (29 ) Finance expense from lease obligation (20 ) 23 (38 ) $ 65 $ (206 ) $ (525 ) |
Schedule of company's paid finance income (expense) | Year ended December 31 2023 2022 2021 Interest received $ 75 $ 10 $ 78 Other interest, net and banking fees (27 ) (26 ) (29 ) $ 48 $ (16 ) $ 49 |
Commitments and contingencies (
Commitments and contingencies (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Commitments and contingencies | |
Schedule of commitments and contingencies | 2024 $ 2,620 $ 2,620 |
Related party transactions (Tab
Related party transactions (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Related party transactions | |
Schedule of compensation paid to key management personnel | Year ended December 31 2023 2022 2021 Salaries, fees and short-term benefits $ 633 $ 595 $ 662 Share-based payments 164 38 50 $ 797 $ 633 $ 712 |
Expenses by nature (Tables)
Expenses by nature (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Expenses by nature | |
Schedule of expenses incurred | Year ended December 31 2023 2022 2021 Personnel expenses Salaries, fees and short-term benefits $ 4,170 $ 4,969 $ 4,513 Share‑based payments 288 47 135 4,458 5,016 4,648 Amortization 2,170 2,057 3,132 Research and development 2,101 2,278 1,547 Manufacturing 261 163 249 Inventory material costs 7,051 6,211 5,790 Write-down of inventory 277 38 1,339 Medical affairs 27 117 58 Administration 554 1,375 1,395 Selling and logistics 4,961 3,931 5,114 Professional fees 688 686 565 $ 22,548 $ 21,872 $ 23,837 |
Financial instruments (Tables)
Financial instruments (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Financial instruments | |
Schedule for exposure to U.S. dollar currency risk through financial assets and liabilities | As at December 31 (Expressed in U.S. Dollars) 2023 2022 Cash and cash equivalents $ 4,786 $ 3,592 Accounts receivable 3,567 4,079 Other assets 57 47 Accounts payable and accrued liabilities (4,876 ) (4,307 ) Current portion of royalty obligation - (132 ) Current portion of acquisition payable - (500 ) Income taxes payable (12 ) (44 ) Current portion of lease obligation (101 ) (92 ) Lease obligation (173 ) (246 ) $ 3,248 $ 2,397 |
Schedule of fair value of financial assets and liabilities | Level 1 Level 2 Level 3 Financial liabilities Current portion of royalty obligation $ - $ - $ 179 Current portion of acquisition payable - - 677 |
Segmented information (Tables)
Segmented information (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Segmented information | |
Schedule of geographical areas of property, plant and equipment and intangible assets | As at December 31 2023 2022 Canada $ 175 $ 392 United States 8,364 9,642 Barbados 4,239 4,954 $ 12,778 $ 14,988 |
Summary of Operating segments | For the year ended December 31, 2023 Marketing and Distribution of Commercial Products Retail and Mail Order Pharmacy Total Revenue $ 12,118 $ 9,576 $ 21,694 Cost of goods sold (3,959 ) (3,746 ) (7,705 ) Operating expenses (19,903 ) (4,940 ) (14,843 ) Finance income, net 11 54 65 Foreign exchange loss (108 ) - (108 ) Loss before income taxes $ (1,841 ) $ 944 $ (897 ) For the year ended December 31, 2022 Marketing and Distribution of Commercial Products Retail and Mail Order Pharmacy Total Revenue $ 15,282 $ 7,783 $ 23,065 Cost of goods sold (4,606 ) (2,384 ) (6,990 ) Operating expenses (10,603 ) (4,279 ) (14,882 ) Other income 346 - 346 Finance income (expense), net (219 ) 13 (206 ) Foreign exchange gain 52 - 52 Profit before income taxes $ 252 $ 1,133 $ 1,385 |
Material accounting policies (D
Material accounting policies (Details) | 12 Months Ended |
Dec. 31, 2023 | |
Right-of-use assets [member] | |
Statement [Line Items] | |
Method of depreciation | Straight-line |
Depreciation rates | Term of lease |
Computers, pharmacy equipment, office equipment, furniture and fixtures [Member] | |
Statement [Line Items] | |
Method of depreciation | Straight-line |
Depreciation rates | 20% to 25% |
Leasehold improvements [member] | |
Statement [Line Items] | |
Method of depreciation | Straight-line |
Depreciation rates | Term of lease |
Business combinations (Details
Business combinations (Details Narrative) - CAD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 17, 2020 | |
Statement [Line Items] | ||||
Other income | $ 346 | $ 1,803 | ||
Marley Drug Inc [Member] | ||||
Statement [Line Items] | ||||
Voting interest acquired, percentage | 100% | |||
Upfront payment | $ 7,781 | |||
Upfront payment held back | 1,374 | |||
Holdback payable | $ 504 | |||
Revenue target to be achieved for the payment of contingent consideration | $ 1,700 | |||
Holdback Payment Withheld Amount | 25 | |||
Legal Fees Incurred Cost During Holdback Payments | $ 25 | |||
Marley Drug Inc [Member] | Discount rate, measurement input [member] | ||||
Statement [Line Items] | ||||
Business combination continget consideration discount rate | 12% | 12% | ||
Marley Drug Inc [Member] | At fair value [member] | ||||
Statement [Line Items] | ||||
Short term contingent consideration payable | $ 1,922 | |||
Long term contingent consideration payable | $ 51 |
Accounts receivable (Details)
Accounts receivable (Details) - CAD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Accounts receivable | ||
Trade accounts receivable | $ 4,426 | $ 5,525 |
Other accounts receivable | 368 | 110 |
Accounts receivable | $ 4,794 | $ 5,635 |
Accounts receivable (Details Na
Accounts receivable (Details Narrative) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 integer | Dec. 31, 2022 CAD ($) integer | Dec. 31, 2021 CAD ($) | |
Statement [Line Items] | |||
Number of customers owing greater than 10% of accounts receivable | integer | 3 | 3 | |
Concentration Risk, Percentage Of Accounts Receivable | 94% | 97% | |
Bad debt expenses | $ | $ 218 | $ 305 | |
Customer A [Member] | |||
Statement [Line Items] | |||
Concentration Risk, Percentage Of Accounts Receivable | 32% | 41% | |
Customer B [Member] | |||
Statement [Line Items] | |||
Concentration Risk, Percentage Of Accounts Receivable | 16% | 19% | |
Customer C [Member] | |||
Statement [Line Items] | |||
Concentration Risk, Percentage Of Accounts Receivable | 46% | 37% |
Inventories (Details)
Inventories (Details) - CAD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Inventories | ||
Finished commercial product available for sale | $ 2,048 | $ 2,365 |
Finished retail pharmacy product available for sale | 306 | 267 |
Unfinished product and packaging materials | 546 | 589 |
Current inventories | $ 2,900 | $ 3,221 |
Inventories (Details Narrative)
Inventories (Details Narrative) - CAD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Inventories | |||
Cost of goods sold, inventory | $ 7,051 | $ 6,211 | $ 5,790 |
Wrote-off (reversal) of inventory | $ 277 | $ 38 | $ 1,339 |
Property plant and equipment (D
Property plant and equipment (Details) - CAD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Statement [Line Items] | |||
Balance | $ 1,187,000 | ||
Balance | 736,000 | $ 1,187,000 | |
Amortization | 434,000 | 461,000 | $ 406,000 |
Accumulated Amortization And Impairment Losses [Member] | |||
Statement [Line Items] | |||
Beginning Balance | 1,874,000 | 1,387,000 | |
Effect of movements in exchange rates | (13,000) | 26,000 | |
Ending Balance | 2,295,000 | 1,874,000 | |
Amortization | 434,000 | 461,000 | |
Gross carrying amount [member] | |||
Statement [Line Items] | |||
Beginning Balance | 3,061,000 | 2,998,000 | |
Effect of movements in exchange rates | (30,000) | 77,000 | |
Ending Balance | 3,031,000 | 3,061,000 | |
Additions | 56,000 | ||
Disposals | (70,000) | ||
Right-of-use assets [member] | |||
Statement [Line Items] | |||
Beginning Balance | 834,000 | ||
Ending Balance | 518,000 | ||
Right-of-use assets [member] | Accumulated Amortization And Impairment Losses [Member] | |||
Statement [Line Items] | |||
Beginning Balance | 1,096,000 | 785,000 | |
Effect of movements in exchange rates | (6,000) | 10,000 | |
Ending Balance | 1,397,000 | 1,096,000 | |
Amortization | 307,000 | 301,000 | |
Right-of-use assets [member] | Gross carrying amount [member] | |||
Statement [Line Items] | |||
Beginning Balance | 1,930,000 | 1,907,000 | |
Effect of movements in exchange rates | (15,000) | 37,000 | |
Ending Balance | 1,915,000 | 1,930,000 | |
Additions | 56,000 | ||
Disposals | (70,000) | ||
Leasehold improvements [member] | |||
Statement [Line Items] | |||
Beginning Balance | 10,000 | ||
Ending Balance | 8,000 | ||
Leasehold improvements [member] | Accumulated Amortization And Impairment Losses [Member] | |||
Statement [Line Items] | |||
Beginning Balance | 173,000 | 171,000 | |
Effect of movements in exchange rates | (1,000) | 0 | |
Ending Balance | 174,000 | 173,000 | |
Amortization | 2,000 | 2,000 | |
Leasehold improvements [member] | Gross carrying amount [member] | |||
Statement [Line Items] | |||
Beginning Balance | 183,000 | 182,000 | |
Effect of movements in exchange rates | (1,000) | 1,000 | |
Ending Balance | 182,000 | 183,000 | |
Computer And Office Equipment [Member] | |||
Statement [Line Items] | |||
Beginning Balance | 343,000 | ||
Ending Balance | 210,000 | ||
Computer And Office Equipment [Member] | Accumulated Amortization And Impairment Losses [Member] | |||
Statement [Line Items] | |||
Beginning Balance | 605,000 | 431,000 | |
Effect of movements in exchange rates | (6,000) | 16,000 | |
Ending Balance | 724,000 | 605,000 | |
Amortization | 125,000 | 158,000 | |
Computer And Office Equipment [Member] | Gross carrying amount [member] | |||
Statement [Line Items] | |||
Beginning Balance | 948,000 | 909,000 | |
Effect of movements in exchange rates | (14,000) | 39,000 | |
Ending Balance | $ 934,000 | $ 948,000 |
Property plant and equipment _2
Property plant and equipment (Details Narrative) - CAD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Statement [Line Items] | |||
Amortization of property, plant and equipment | $ 434 | $ 461 | $ 406 |
Selling, general and administrative expense | |||
Statement [Line Items] | |||
Amortization of property, plant and equipment | 421 | 448 | 393 |
Selling, general and administrative expense | Discontinued operations [member] | |||
Statement [Line Items] | |||
Amortization of property, plant and equipment | $ 13 | $ 13 | $ 13 |
Intangible assets (Details)
Intangible assets (Details) $ in Thousands, $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2023 CAD ($) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 CAD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CAD ($) | |
Statement [Line Items] | |||||
Intangible assets, beginning balance | $ 10,624 | ||||
Intangible assets, ending balance | 8,940 | $ 10,624 | |||
Amortization of property, plant and equipment | 434 | 461 | $ 406 | ||
Software [Member] | |||||
Statement [Line Items] | |||||
Intangible assets, beginning balance | 705 | ||||
Intangible assets, ending balance | 798 | 705 | |||
Licenses [Member] | |||||
Statement [Line Items] | |||||
Intangible assets, beginning balance | 890 | ||||
Intangible assets, ending balance | 695 | 890 | |||
Patents and drug approvals [member] | |||||
Statement [Line Items] | |||||
Intangible assets, beginning balance | 4,954 | ||||
Intangible assets, ending balance | 4,239 | 4,954 | |||
Brand names and trademarks [member] | |||||
Statement [Line Items] | |||||
Intangible assets, beginning balance | 419 | ||||
Intangible assets, ending balance | 358 | 419 | |||
Customer list [member] | |||||
Statement [Line Items] | |||||
Intangible assets, beginning balance | 2,850 | ||||
Intangible assets, ending balance | 3,656 | 2,850 | |||
Gross carrying amount [member] | |||||
Statement [Line Items] | |||||
Intangible assets, beginning balance | 38,819 | 36,052 | |||
Intangible assets, ending balance | 38,177 | 38,819 | 36,052 | ||
Effect of movements in exchange rates | (912) | 2,471 | |||
Effect of movements in exchange rates | (30) | 77 | |||
Additions | 270 | 296 | |||
Gross carrying amount [member] | Software [Member] | |||||
Statement [Line Items] | |||||
Intangible assets, beginning balance | 781 | 446 | |||
Intangible assets, ending balance | 1,031 | 781 | 446 | ||
Effect of movements in exchange rates | (20) | 39 | |||
Additions | 270 | 296 | |||
Gross carrying amount [member] | Licenses [Member] | |||||
Statement [Line Items] | |||||
Intangible assets, beginning balance | 1,256 | 1,176 | |||
Intangible assets, ending balance | 1,227 | 1,256 | 1,176 | ||
Effect of movements in exchange rates | (29) | 80 | |||
Gross carrying amount [member] | Patents and drug approvals [member] | |||||
Statement [Line Items] | |||||
Intangible assets, beginning balance | 25,996 | 24,334 | |||
Intangible assets, ending balance | 25,386 | 25,996 | 24,334 | ||
Effect of movements in exchange rates | (610) | 1,662 | |||
Gross carrying amount [member] | Brand names and trademarks [member] | |||||
Statement [Line Items] | |||||
Intangible assets, beginning balance | 4,860 | $ 4,549 | |||
Intangible assets, ending balance | $ 4,746 | 4,860 | |||
Effect of movements in exchange rates | (114) | 311 | |||
Gross carrying amount [member] | Customer list [member] | |||||
Statement [Line Items] | |||||
Intangible assets, beginning balance | 5,926 | 5,547 | |||
Intangible assets, ending balance | 5,787 | 5,926 | 5,547 | ||
Effect of movements in exchange rates | (139) | 379 | |||
Accumulated Amortization And Impairment Losses [Member] | |||||
Statement [Line Items] | |||||
Effect of movements in exchange rates | (13) | 26 | |||
Amortization of property, plant and equipment | 434 | 461 | |||
Accumulated Amortization And Impairment Losses [Member] | Software [Member] | |||||
Statement [Line Items] | |||||
Intangible assets, beginning balance | 76 | 0 | |||
Intangible assets, ending balance | 233 | 76 | 0 | ||
Effect of movements in exchange rates | (3) | 2 | |||
Amortization of property, plant and equipment | 160 | 74 | |||
Accumulated Amortization And Impairment Losses [Member] | Licenses [Member] | |||||
Statement [Line Items] | |||||
Intangible assets, beginning balance | 366 | 175 | |||
Intangible assets, ending balance | 532 | 366 | 175 | ||
Effect of movements in exchange rates | (12) | 19 | |||
Amortization of property, plant and equipment | 178 | 172 | |||
Accumulated Amortization And Impairment Losses [Member] | Patents and drug approvals [member] | |||||
Statement [Line Items] | |||||
Intangible assets, beginning balance | 21,042 | 19,123 | |||
Intangible assets, ending balance | 21,147 | 21,042 | 19,123 | ||
Effect of movements in exchange rates | (506) | 1,330 | |||
Amortization of property, plant and equipment | 611 | 589 | |||
Accumulated Amortization And Impairment Losses [Member] | Brand names and trademarks [member] | |||||
Statement [Line Items] | |||||
Intangible assets, beginning balance | 4,441 | 4,107 | |||
Intangible assets, ending balance | 4,388 | 4,441 | 4,107 | ||
Effect of movements in exchange rates | (105) | 284 | |||
Amortization of property, plant and equipment | 52 | 50 | |||
Accumulated Amortization And Impairment Losses [Member] | Customer list [member] | |||||
Statement [Line Items] | |||||
Intangible assets, beginning balance | 2,270 | 1,435 | |||
Intangible assets, ending balance | 2,937 | 2,270 | 1,435 | ||
Effect of movements in exchange rates | (68) | 126 | |||
Amortization of property, plant and equipment | 735 | 709 | |||
Accumulated Amortization [Member] | |||||
Statement [Line Items] | |||||
Intangible assets, beginning balance | 28,195 | 24,840 | |||
Intangible assets, ending balance | 29,237 | 28,195 | $ 24,840 | ||
Effect of movements in exchange rates | (694) | 1,761 | |||
Amortization of property, plant and equipment | $ 1,736 | $ 1,594 |
Intangible assets (Details Narr
Intangible assets (Details Narrative) - CAD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | |||
Sep. 30, 2019 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 17, 2020 | |
Statement [Line Items] | |||||
Extend Amortization Period Of Intangible Assets | 7 years | ||||
Patents And Drug Approval [Member] | |||||
Statement [Line Items] | |||||
Additions | $ 8,930 | ||||
Transfers within intangible assets | 1,457 | ||||
Accumulated depreciation and amortisation [member] | |||||
Statement [Line Items] | |||||
Amortization of the acquired intangible assets | $ 611 | $ 589 | $ 1,841 | ||
Marley Drug Inc [Member] | |||||
Statement [Line Items] | |||||
Amortization of intangibles assets recorded in selling expense | $ 1,125 | $ 1,005 | $ 897 | ||
Upfront payment | $ 7,781 | ||||
Zydus [Member] | |||||
Statement [Line Items] | |||||
Upfront payment | 5,000 | ||||
Deferred payment | $ 2,000 |
Goodwill (Details)
Goodwill (Details) - CAD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Goodwill | ||
Beginning balance | $ 3,177 | $ 2,974 |
Effects of movements in exchange rates | (75) | 203 |
Ending balance | $ 3,102 | $ 3,177 |
Goodwill (Details Narrative)
Goodwill (Details Narrative) | 12 Months Ended |
Dec. 31, 2023 | |
Goodwill | |
Discount rate applied to cash flow projections | 13.40% |
Revenue growth rate | 2% |
Royalty obligation (Details Nar
Royalty obligation (Details Narrative) - CAD ($) | 1 Months Ended | 12 Months Ended | ||
Jul. 18, 2011 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Statement [Line Items] | ||||
Carrying value of the royalty obligation | $ 0 | $ 179,000 | ||
Current portion of the royalty obligation | 37,000 | 169,000 | $ 262,000 | |
Royalties received | 105,000 | 506,000 | 464,000 | |
Royalties paid | $ 256,000 | $ 1,056,000 | $ 99,000 | |
Birmingham Associates Ltd [Member] | Aggrastat [Member] | ||||
Statement [Line Items] | ||||
Value of shares issued on debt conversion | $ 4,750,000 | |||
Number of shares issued on debt conversion | 2,176,003 | |||
Percentage of first $2,000,000 of quarterly sales | 4% | |||
Percentage of quarterly sales between $2,000,000 and $4,000,000 | 6% | |||
Percentage of portion of quarterly sales exceeding $4,000,000 payable within 60 days | 8% | |||
Amount of quarterly product revenue | $ 2,000,000 | |||
Credit Period For Royalty Payment | 60 years | 60 days |
Lease obligations (Details)
Lease obligations (Details) - CAD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Statement [Line Items] | ||
Current | $ 315 | $ 346 |
Non-current | 229 | 503 |
Lease liability | $ 544 | $ 849 |
Incremental borrowing rate % | 5% | 5% |
Maturity | 2023 | |
Miniimums [member] | ||
Statement [Line Items] | ||
Incremental borrowing rate % | 3% | |
Maturity | 2024 | |
Maxiimums [member] | ||
Statement [Line Items] | ||
Incremental borrowing rate % | 5% | |
Maturity | 2027 |
Lease obligations (Details Narr
Lease obligations (Details Narrative) $ in Thousands | 12 Months Ended | |||||||
Jun. 01, 2022 CAD ($) | Dec. 31, 2020 CAD ($) | Nov. 01, 2019 CAD ($) | Dec. 31, 2023 CAD ($) | Dec. 31, 2022 CAD ($) | Dec. 17, 2020 | Nov. 01, 2018 CAD ($) | Oct. 31, 2017 CAD ($) | |
Statement [Line Items] | ||||||||
Term of agreement | 10 years | |||||||
Discount rate used in lease obligations | 5% | 5% | ||||||
Reduced sublease rent per annum | $ 87 | |||||||
Cash outflow for leases | $ 353 | $ 355 | ||||||
Subleases Agreement With Gvi [Member] | ||||||||
Statement [Line Items] | ||||||||
Term of agreement | 3 years | 3 years | ||||||
Sublease rent upto 30th April, 2016 | $ 170 | |||||||
Sublease rent from 1st May, 2016 | $ 306 | $ 212 | ||||||
Reduced sublease rent per annum | $ 238 | |||||||
Extended sublease rent per annum | $ 222 | |||||||
Subleases Agreement With Marley Drug [Member] | ||||||||
Statement [Line Items] | ||||||||
Term of agreement | 5 years | |||||||
Sublease rent from 1st May, 2016 | $ 97 | |||||||
Discount rate used in lease obligations | 5% | 3% | ||||||
Marley Drug Inc [Member] | ||||||||
Statement [Line Items] | ||||||||
Area of retail space | 3,280 |
Government assistance (Details
Government assistance (Details Narrative) - CAD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Government assistance | |||
Government assistance resulting from the canada emergency wage subsidy | $ 0 | $ 0 | $ 402,000 |
Capital stock (Details)
Capital stock (Details) - CAD ($) | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Statement [Line Items] | ||||
Amount | $ 19,896,000 | $ 21,005,000 | $ 18,411,000 | $ 19,146,000 |
Number of Common Shares | ||||
Statement [Line Items] | ||||
Number of shares outstanding | 10,436,313 | 10,251,313 | 10,251,313 | |
Amount | $ 81,014 | $ 80,917 | $ 80,917 |
Capital stock (Details 1)
Capital stock (Details 1) | 12 Months Ended | ||
Dec. 31, 2023 $ / shares | Dec. 31, 2022 $ / shares | Dec. 31, 2021 $ / shares | |
Statement [Line Items] | |||
Balance, beginning of year | 638,400 | ||
Balance, end of year | 638,400 | ||
Number of Common Shares | |||
Statement [Line Items] | |||
Balance, beginning of year | 638,400 | 807,150 | 1,326,958 |
Granted | 1,205,000 | 20,000 | 90,000 |
Exercised | (185,000) | ||
Forfeited, cancelled or expired | (180,700) | (188,750) | (609,808) |
Balance, end of year | 1,477,700 | 638,400 | 807,150 |
Options exercisable, end of period | 332,700 | 602,400 | 706,750 |
Weighted average exercise price, beginning of year | $ 3.05 | $ 3.73 | $ 3.67 |
Weighted average exercise price, Granted | 1.25 | 1.20 | 1.10 |
Weighted average exercise price, Exercised | 0.30 | ||
Weighted average exercise price, Forfeited, cancelled or expired | (4.76) | (5.77) | (2.99) |
Weighted average exercise price, end of period | 1.72 | 3.05 | 3.73 |
Weighted average exercise price, exercisable | $ 3.32 | $ 2.93 | $ 3.49 |
Capital stock (Details 2)
Capital stock (Details 2) | 12 Months Ended | |
Dec. 31, 2023 $ / shares | Dec. 31, 2022 | |
Statement [Line Items] | ||
Number of shares outstanding | 638,400 | |
$1.10 | ||
Statement [Line Items] | ||
Number of shares outstanding | 60,000 | |
Weighted average remaining contractual life (in years) | 2 years 6 months 29 days | |
Weighted average exercise price | $ 1.10 | |
Options exercisable | 60,000 | |
$1.11 - $1.50 | ||
Statement [Line Items] | ||
Number of shares outstanding | 1,165,000 | |
Weighted average remaining contractual life (in years) | 8 years 11 months 27 days | |
Weighted average exercise price | $ 1.20 | |
Options exercisable | 20,000 | |
$1.51 ? $3.00 | ||
Statement [Line Items] | ||
Number of shares outstanding | 77,700 | |
Weighted average remaining contractual life (in years) | 1 year | |
Weighted average exercise price | $ 1.90 | |
Options exercisable | 77,700 | |
3.01 - $4.95 | ||
Statement [Line Items] | ||
Number of shares outstanding | 175,000 | |
Weighted average remaining contractual life (in years) | 5 months 27 days | |
Weighted average exercise price | $ 4.95 | |
Options exercisable | 175,000 | |
$1.10 ? $4.95 | ||
Statement [Line Items] | ||
Number of shares outstanding | 1,477,700 | |
Weighted average remaining contractual life (in years) | 7 years 3 months 18 days | |
Weighted average exercise price | $ 1.72 | |
Options exercisable | 332,700 |
Capital stock (Details 3)
Capital stock (Details 3) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Capital stock | |||
Expected option life (in years) | 4 years 7 months 6 days | 4 years 7 months 6 days | 4 years 7 months 6 days |
Risk free interest rate | 2.99% | 2.63% | 0.75% |
Dividend yield | 0% | 0% | 0% |
Expected volatility | 60.92% | 73.85% | 69.03% |
Capital stock (Details 4)
Capital stock (Details 4) $ in Thousands | 12 Months Ended | |||||
Dec. 31, 2023 CAD ($) shares | Dec. 31, 2023 $ / shares | Dec. 31, 2022 CAD ($) shares | Dec. 31, 2022 $ / shares | Dec. 31, 2021 CAD ($) shares | Dec. 31, 2021 $ / shares | |
Capital stock | ||||||
Basic earnings (loss) per share | $ / shares | $ (0.09) | $ 0.133 | $ (0.07) | |||
Diluted earnings (loss) per share | $ / shares | $ (0.09) | $ 0.131 | $ (0.07) | |||
Net profit (loss) | $ | $ (922) | $ 1,365 | $ (727) | |||
Weighted average shares outstanding for basic earnings (loss) per share | shares | 10,436,313 | 10,251,313 | 10,251,313 | |||
Weighted average shares outstanding for diluted earnings (loss) per share | shares | 10,436,313 | 10,436,313 | 10,251,313 |
Capital stock (Details Narrativ
Capital stock (Details Narrative) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 CAD ($) shares | Dec. 31, 2022 CAD ($) shares | Dec. 31, 2021 CAD ($) shares | |
Capital stock | |||
Exercised | 185,000 | ||
Share-based payments | $ | $ 288 | $ 47 | $ 135 |
Anti-dilutive stock option excluded from calculation of diluted earnings per share before discontinued operations as exercise price exceeded the share price on TSX Venture Exchange | shares | 1,225,000 | 453,400 | 807,150 |
Income taxes (Details)
Income taxes (Details) - CAD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Deferred tax assets | ||
Scientific research and experimental development | $ 3,358 | $ 3,358 |
Non-capital losses | 3,308 | 3,147 |
Other | 430 | 839 |
Total deferred tax assets | $ 7,096 | $ 7,344 |
Income taxes (Details 1)
Income taxes (Details 1) - CAD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Income (loss) for the year | |||
Canadian | $ (1,654) | $ (1,217) | $ (1,195) |
Foreign | 732 | 2,602 | 436 |
(Loss) Income for the year | (922) | 1,385 | (759) |
Canadian federal and provincial income taxes at 27% (2022 - 27%; 2021 - 27%) | (249) | 374 | (205) |
Permanent differences and other items | (197) | (274) | (165) |
Fair value adjustments | 318 | (100) | (453) |
Foreign tax rate in foreign jurisdictions | (94) | (390) | 167 |
Change in unrecognized deferred tax assets | 247 | 410 | 624 |
(Expense) recovery | $ 25 | $ 20 | $ (32) |
Income taxes (Details 2)
Income taxes (Details 2) $ in Thousands | Dec. 31, 2023 CAD ($) |
Canaada [Member] | |
Statement [Line Items] | |
Losses available for application in future years | $ 11,180 |
Canada, Dollars | Year Two Zero Four Three [Member] | |
Statement [Line Items] | |
Losses available for application in future years | 498 |
Canada, Dollars | Year Two Zero Three Seven [Member] | |
Statement [Line Items] | |
Losses available for application in future years | 5,275 |
Canada, Dollars | Year Two Zero Four Zero [Member] | |
Statement [Line Items] | |
Losses available for application in future years | 2,774 |
Canada, Dollars | Year Two Zero Four One [Member] | |
Statement [Line Items] | |
Losses available for application in future years | 969 |
Canada, Dollars | Year Two Zero Four Two [Member] | |
Statement [Line Items] | |
Losses available for application in future years | 1,664 |
BARBADOS | Year Two Zero Two Eight [Member] | |
Statement [Line Items] | |
Losses available for application in future years | 1,348 |
BARBADOS | Year Two Zero Two Nine [Member] | |
Statement [Line Items] | |
Losses available for application in future years | 3,927 |
Barbadaos [Membr] | |
Statement [Line Items] | |
Losses available for application in future years | $ 5,275 |
Income taxes (Detail Narrative)
Income taxes (Detail Narrative) - CAD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Statement [Line Items] | |||
Current income tax expense | $ 25 | $ 20 | $ (32) |
Deferred income tax expense (recovery) | 0 | 0 | $ 0 |
Income taxes payable | $ 16 | $ 60 | |
Barbadaos [Membr] | |||
Statement [Line Items] | |||
Income tax rate | 5.50% | ||
Uniited States [Member] | |||
Statement [Line Items] | |||
Income tax rate | 21% | 23.50% | |
Irelands [Member] | |||
Statement [Line Items] | |||
Income tax rate | 12.50% |
Finance income (expense) (Detai
Finance income (expense) (Details) - CAD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Finance income (expense) | |||
Interest income | $ 75 | $ 10 | $ 78 |
Remeasurement of royalty obligation | 37 | (169) | (262) |
Accretion of acquisition payable | 0 | (44) | (96) |
Change in fair value of contingent consideration | 0 | 0 | (178) |
Bank charges and other interest | (27) | (26) | (29) |
Finance expense from lease obligation | (20) | 23 | |
Total Finance costs (income) | $ 65 | $ (206) | $ (525) |
Finance income (expense) (Det_2
Finance income (expense) (Details 1) - CAD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Finance income (expense) | |||
Interest received | $ 75 | $ 10 | $ 78 |
Other interest, net and banking fees | (27) | (26) | (29) |
Finance income (expense) (paid) received | $ 48 | $ (16) | $ 49 |
Commitments and contingencies_2
Commitments and contingencies (Details) $ in Thousands | Dec. 31, 2023 CAD ($) |
Statement [Line Items] | |
Future payable representing contracts and other commitments | $ 2,620 |
Later than one year and not later than two years [member] | |
Statement [Line Items] | |
Future payable representing contracts and other commitments | $ 2,620 |
Commitments and contingencies_3
Commitments and contingencies (Details Narrative) - CAD ($) | 12 Months Ended | |||||
Dec. 31, 2020 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2017 | Dec. 28, 2022 | |
Statement [Line Items] | ||||||
Unfinished product inventory, top | $ 490,000 | |||||
Unfinished product inventory, bottom | $ 400,000 | |||||
Term of agreement | 10 years | |||||
Royalty expense | $ 105,000 | 506,000 | 464,000 | |||
Royalties paid | (256,000) | (1,056,000) | (99,000) | |||
Accounts payable and accrued liabilities | 7,603,000 | 7,128,000 | ||||
Inventory recognised as of acquisition date | 1,615,000 | |||||
Research and development expense | 2,406,000 | 2,754,000 | 1,796,000 | |||
Contractual capital commitments | 2,620,000 | |||||
Business And Administration Agreement With Gvi [Member] | ||||||
Statement [Line Items] | ||||||
Amount committed to pay under the agreement, per month | 7,000 | |||||
Amount committed to pay under the agreement, per year | 85,000 | |||||
Six percentage on quarterly sales top [Member] | ||||||
Statement [Line Items] | ||||||
Cost of merchandise sold | 4,000,000 | |||||
Six percentage on quarterly sales bottom [Member] | ||||||
Statement [Line Items] | ||||||
Cost of merchandise sold | 2,000,000 | |||||
Four percentage on quarterly sales [Member] | ||||||
Statement [Line Items] | ||||||
Cost of merchandise sold | 2,000,000 | |||||
Eight percentage on quarterly sales [Member] | ||||||
Statement [Line Items] | ||||||
Cost of merchandise sold | 4,000,000 | |||||
Prexxartan [Member] | ||||||
Statement [Line Items] | ||||||
Accounts payable and accrued liabilities | 400,000 | |||||
Research and development expense | 491,000 | |||||
Prexxartan [Member] | Exclusive License Agreement [Member] | ||||||
Statement [Line Items] | ||||||
Term of agreement | 7 years | |||||
Upfront payment | $ 100,000 | |||||
Additional amount payable | $ 400,000 | |||||
Aggrastat [Member] | ||||||
Statement [Line Items] | ||||||
Unfinished product inventory | 150,000 | |||||
Contractual capital commitments | $ 872,000 | |||||
Technology services agreement milestone payable | 382,000 | $ 314,000 | 0 | |||
Aggrastat [Member] | Upto 200000 [Member] | Birmingham Associates Ltd [Member] | ||||||
Statement [Line Items] | ||||||
Percentage of royalty | 4% | |||||
Aggrastat [Member] | Above 400000 [Member] | Birmingham Associates Ltd [Member] | ||||||
Statement [Line Items] | ||||||
Percentage of royalty | 6% | |||||
Aggrastat [Member] | Between 200000 and 400000 [Member] | Birmingham Associates Ltd [Member] | ||||||
Statement [Line Items] | ||||||
Percentage of royalty | 8% | |||||
ZYPITAMAG [Member] | Zydus [Member] | ||||||
Statement [Line Items] | ||||||
Royalty expense | $ 151,000 | $ 62,000 | ||||
Cost of good sold | $ 234,000 | $ 237,000 |
Related party transactions (Det
Related party transactions (Details) - CAD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Related party transactions | |||
Salaries, fees and short-term benefits | $ 633 | $ 595 | $ 662 |
Share-based payments | 164 | 38 | 50 |
Total | $ 797 | $ 633 | $ 712 |
Related party transactions (D_2
Related party transactions (Detail Narrative) - CAD ($) | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Jul. 18, 2016 | |
Statement [Line Items] | ||||
Research and development expense | $ 2,406,000 | $ 2,754,000 | $ 1,796,000 | |
Genesys Venture Inc [Member] | ||||
Statement [Line Items] | ||||
Amount payable for services provided recorded within accounts payable and accrued liabilities | 5,000 | 1,000 | ||
Research and development expense | 7,000 | 4,000 | 9,000 | |
Services expense | 85,000 | 85,000 | 85,000 | |
Rental expense | $ 222,000 | $ 229,000 | $ 238,000 | |
Commercial And Information Technology | 36 | 34 | 34 | |
Clinical research services | $ 318,000 | $ 254,000 | $ 315,000 | |
A.D. Friesen Enterprises Ltd [Member] | ||||
Statement [Line Items] | ||||
Amount payable under agreement | $ 300,000 | |||
Revised amount payable under agreement | 331,000 | |||
ADF Family Holding Corp [Member] | ||||
Statement [Line Items] | ||||
Amount payable for services provided recorded within accounts payable and accrued liabilities | 23,000 | |||
Amount payable under agreement | $ 300,000 | |||
One Zero Zero Five Five Zero Nine Eight Manitoba Ltd [Member] | ||||
Statement [Line Items] | ||||
Amount payable for services provided recorded within accounts payable and accrued liabilities | 20,000 | |||
One Zero Zero Five Five Zero Nine Eight Minimum Manitoba Ltd [Member] | ||||
Statement [Line Items] | ||||
Other Fee And Commission Expense | 6,000 | |||
One Zero Zero Five Five Zero Nine Eight Maximum Manitoba Ltd [Member] | ||||
Statement [Line Items] | ||||
Other Fee And Commission Expense | 9,000 | |||
Key management personnel of entity or parent [member] | ||||
Statement [Line Items] | ||||
Amount payable for services provided recorded within accounts payable and accrued liabilities | $ 10,000 | $ 12,000 | ||
Voting shares of Directors and key management personnel control | 28% | 28% |
Expenses by nature (Details)
Expenses by nature (Details) - CAD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Personnel expenses | |||
Salaries, fees and short-term benefits | $ 4,170 | $ 4,969 | $ 4,513 |
Share-based payments | 288 | 47 | 135 |
Employee benefits expense | 4,458 | 5,016 | 4,648 |
Amortization | 2,170 | 2,057 | 3,132 |
Research and development | 2,101 | 2,278 | 1,547 |
Manufacturing | 261 | 163 | 249 |
Inventory material costs | 7,051 | 6,211 | 5,790 |
Write-down of inventories | 277 | 38 | 1,339 |
Medical affairs | 27 | 117 | 58 |
Administration | 554 | 1,375 | 1,395 |
Selling and logistics | 4,961 | 3,931 | 5,114 |
Professional fees | 688 | 686 | 565 |
Expenses by nature | $ 22,548 | $ 21,872 | $ 23,837 |
Financial instruments (Details)
Financial instruments (Details) - Level 3 of fair value hierarchy [member] $ in Thousands | Dec. 31, 2022 CAD ($) |
Current Portion Of Royalty Obligation [Member] | |
Statement [Line Items] | |
Financial liabilities | $ 179 |
Current Portion Of Acquisition Payable [Member] | |
Statement [Line Items] | |
Financial liabilities | $ 677 |
Financial instruments (Details
Financial instruments (Details 1) - CAD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
Statement [Line Items] | ||
Cash and cash equivalents | $ 6,369,000 | $ 4,857,000 |
Accounts receivable | 4,794,000 | 5,635,000 |
Other assets | 75,000 | 63,000 |
Accounts payable and accrued liabilities | (7,603,000) | (7,128,000) |
Current portion of royalty obligation | 0 | (179,000) |
Current portion of acquisition payable | 0 | (677,000) |
Income taxes payable | (16,000) | (60,000) |
Current portion of lease obligation | (315,000) | (346,000) |
Lease obligation | (544,000) | (849,000) |
Currency risk [member] | ||
Statement [Line Items] | ||
Cash and cash equivalents | 4,786,000 | 3,592,000 |
Accounts receivable | 3,567,000 | 4,079,000 |
Other assets | 57,000 | 47,000 |
Accounts payable and accrued liabilities | (4,876,000) | (4,307,000) |
Current portion of royalty obligation | 0 | (132,000) |
Current portion of acquisition payable | 0 | (500,000) |
Income taxes payable | (12,000) | (44,000) |
Current portion of lease obligation | (101,000) | (92,000) |
Lease obligation | (173,000) | (246,000) |
financial assets and liabilities | $ 3,248 | $ 2,397 |
Financial instruments (Detail_2
Financial instruments (Details Narrative) - CAD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Statement [Line Items] | |||
Concentration of credit risk, Percentage Of Accounts Receivable | 94% | ||
Bad debt expenses | $ 218 | $ 305 | |
Accounts payable | $ 359 | 369 | |
Other price risk [member] | |||
Statement [Line Items] | |||
Amount of Change in net income due to 5% appreciation or deterioration of the Canadian dollar against the U.S. dollar | 162 | 162 | |
Amount of Change in net income due to 1% appreciation or deterioration of the Canadian dollar against the U.S. dollar | 64 | 49 | |
Amount of Change in net income due to 5% appreciation or deterioration of the Canadian dollar against the Euro | $ 26 | $ 27 |
Segmented information (Details)
Segmented information (Details) - CAD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Statement [Line Items] | ||
Property, plant and equipment, intangible assets and other assets | $ 12,778 | $ 14,988 |
Canaada [Member] | ||
Statement [Line Items] | ||
Property, plant and equipment, intangible assets and other assets | 175 | 392 |
Barbadaos [Membr] | ||
Statement [Line Items] | ||
Property, plant and equipment, intangible assets and other assets | 4,239 | 4,954 |
Uniited States [Member] | ||
Statement [Line Items] | ||
Property, plant and equipment, intangible assets and other assets | $ 8,364 | $ 9,642 |
Segmented information (Details
Segmented information (Details 1) - CAD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Statement [Line Items] | |||
Revenue | $ 21,694 | $ 23,065 | $ 21,744 |
Cost of goods sold | (7,705) | (6,990) | (9,032) |
Operating expenses | (14,843) | (14,882) | |
Other income | 346 | 1,803 | |
Total Finance costs (income) | 65 | (206) | (525) |
Foreign exchange gain, net | (108) | 52 | 31 |
Profit (Loss) before income taxes | (897) | 1,385 | $ (759) |
Marketing and Distribution of Commercial Products [Member] | |||
Statement [Line Items] | |||
Revenue | 12,118 | 15,282 | |
Cost of goods sold | (3,959) | (4,606) | |
Operating expenses | (19,903) | (10,603) | |
Other income | 346 | ||
Total Finance costs (income) | (11) | (219) | |
Foreign exchange gain, net | (108) | 52 | |
Profit (Loss) before income taxes | (1,841) | 252 | |
Retail and Mail Order Pharmacy [Member] | |||
Statement [Line Items] | |||
Revenue | 9,576 | 7,783 | |
Cost of goods sold | (3,746) | (2,384) | |
Operating expenses | (4,940) | (4,279) | |
Other income | 54 | 0 | |
Total Finance costs (income) | 13 | ||
Foreign exchange gain, net | 0 | 0 | |
Profit (Loss) before income taxes | $ 944 | $ 1,133 |
Segmented information (Detail N
Segmented information (Detail Narrative) - integer | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Statement [Line Items] | |||
Percentage of total revenue | 100% | 100% | 100% |
Number of customers | 7 | 10 | 17 |
Number of remaining customers accounted for less than 1% revenue | 4 | 7 | 14 |
Uniited States [Member] | |||
Statement [Line Items] | |||
Percentage of total revenue | 100% | 100% | 100% |
Customer A [Member] | |||
Statement [Line Items] | |||
Percentage of total revenue | 32% | 38% | 38% |
Customer B [Member] | |||
Statement [Line Items] | |||
Percentage of total revenue | 18% | 19% | 20% |
Customer C [Member] | |||
Statement [Line Items] | |||
Percentage of total revenue | 46% | 38% | 35% |
Customer D [Member] | |||
Statement [Line Items] | |||
Percentage of total revenue | 4% | 5% | 7% |