Document And Entity Information
Document And Entity Information | 12 Months Ended |
Dec. 31, 2018shares | |
Document Information [Line Items] | |
Entity Registrant Name | LINGO MEDIA CORP |
Entity Central Index Key | 0001177167 |
Trading Symbol | lmdc |
Current Fiscal Year End Date | --12-31 |
Entity Filer Category | Non-accelerated Filer |
Entity Current Reporting Status | Yes |
Entity Voluntary Filers | No |
Entity Well-known Seasoned Issuer | No |
Entity Emerging Growth Company | false |
Entity Shell Company | false |
Entity Common Stock, Shares Outstanding (in shares) | 35,529,192 |
Document Type | 20-F |
Document Period End Date | Dec. 31, 2018 |
Document Fiscal Year Focus | 2018 |
Document Fiscal Period Focus | FY |
Amendment Flag | false |
Consolidated Balance Sheets
Consolidated Balance Sheets - CAD ($) | Dec. 31, 2018 | Dec. 31, 2017 |
Current Assets | ||
Cash | $ 233,843 | $ 327,434 |
Accounts and grants receivable | 913,458 | 970,467 |
Prepaid and other receivables | 101,539 | 205,482 |
1,248,840 | 1,503,383 | |
Non-Current Assets | ||
Property and equipment | 53,164 | 30,689 |
TOTAL ASSETS | 1,302,004 | 1,534,072 |
Current Liabilities | ||
Accounts payable | 312,034 | 488,636 |
Accrued liabilities | 167,558 | 155,156 |
Contract liability | 217,259 | |
Lease inducement | 46,559 | 36,526 |
Loans payable | 300,000 | |
743,410 | 980,318 | |
Equity | ||
Share capital | 21,914,722 | 21,914,722 |
Share-based payment reserve | 3,955,167 | 3,792,678 |
Accumulated other comprehensive income | (271,245) | (303,447) |
Deficit | (25,040,050) | (24,850,199) |
TOTAL EQUITY | 558,594 | 553,754 |
TOTAL LIABILITIES AND EQUITY | 1,302,004 | 1,534,072 |
Commitments and contingency |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - CAD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Statement Line Items [Line Items] | |||
Revenue | $ 1,940,182 | $ 2,776,768 | $ 3,195,221 |
Expenses | |||
Selling, general and administrative | 1,200,766 | 1,368,153 | 1,364,735 |
Amortization – intangibles | 1,051,928 | 1,003,485 | |
Bad debt (recovery) | (293,379) | 732,254 | |
Direct costs | 271,020 | 225,618 | 385,384 |
Development costs | 481,992 | 2,692,009 | |
Share-based payments | 162,489 | 371,513 | |
Loss on acquisition | 80,818 | ||
Impairment loss – goodwill | 139,618 | ||
Impairment loss – intangible assets | 1,948,082 | ||
Depreciation – property and equipment | 18,369 | 6,644 | 7,297 |
Total Expenses | 1,841,257 | 8,616,636 | 2,760,902 |
Income /(Loss) from Operations | (104,156) | (5,839,869) | 434,319 |
Net Finance Charges | |||
Interest expense | 51,898 | 53,709 | 35,768 |
Foreign exchange loss (gain) | (38,351) | 189,783 | 146,599 |
Profit / (Loss) Before Income Tax | 85,378 | (6,083,360) | 251,952 |
Income tax expense | 189,534 | 178,022 | 187,705 |
Net Profit / (Loss) for the Year | (104,156) | (6,261,382) | 64,247 |
Other Comprehensive Income | |||
Items that may be subsequently transferred to net profit (loss). Exchange gain (loss) on translating foreign operations | 32,202 | (1,410) | 60,173 |
Total Comprehensive Income (Loss) | $ (71,954) | $ (6,262,792) | $ 124,420 |
Earnings (Loss) per Share | |||
Basic (in CAD per share) | $ 0 | $ (0.18) | $ 0 |
Diluted (in CAD per share) | $ 0 | $ (0.18) | $ 0 |
Weighted Average Number of Common Shares Outstanding | |||
Basic (in shares) | 35,529,192 | 35,529,192 | 33,987,383 |
Diluted (in shares) | 35,529,192 | 35,529,192 | 34,951,693 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Equity - CAD ($) | Issued capital [member] | Reserve of share-based payments [member] | Warrants [member] | Amount recognised in other comprehensive income and accumulated in equity relating to non-current assets or disposal groups held for sale [member] | Retained earnings [member] | Total |
Balance (in shares) at Dec. 31, 2015 | 29,518,343 | |||||
Balance at Dec. 31, 2015 | $ 18,927,388 | $ 2,695,038 | $ 1,439,632 | $ (362,210) | $ (18,653,064) | $ 4,046,784 |
Statement Line Items [Line Items] | ||||||
Net Profit (Loss) for the Year | 64,247 | 64,247 | ||||
Other comprehensive income (loss) | 60,173 | 60,173 | ||||
Warrants exercise (note 13 (d)) (in shares) | 5,711,683 | |||||
Warrants exercise (note 13 (d)) | $ 2,904,840 | (683,578) | 2,221,262 | |||
Expired warrant | 756,054 | (756,054) | ||||
Stock option exercise (note 13 (c)) | $ 82,494 | (29,927) | 52,567 | |||
Balance (in shares) at Dec. 31, 2016 | 35,529,192 | |||||
Balance at Dec. 31, 2016 | $ 21,914,722 | 3,421,165 | (302,037) | (18,588,817) | 6,445,033 | |
Statement Line Items [Line Items] | ||||||
Net Profit (Loss) for the Year | (6,261,382) | (6,261,382) | ||||
Other comprehensive income (loss) | (1,410) | (1,410) | ||||
Share-based payments charged to operations | 371,513 | 371,513 | ||||
Balance (in shares) at Dec. 31, 2017 | 35,529,192 | |||||
Balance at Dec. 31, 2017 | $ 21,914,722 | 3,792,678 | (303,447) | (24,850,199) | 553,754 | |
Statement Line Items [Line Items] | ||||||
Net Profit (Loss) for the Year | (104,156) | (104,156) | ||||
Other comprehensive income (loss) | 32,202 | 32,202 | ||||
Share-based payments charged to operations | 162,489 | 162,489 | ||||
Contract adjustment for 2017 (note 4.1) | (85,695) | (85,695) | ||||
Balance (in shares) at Dec. 31, 2018 | 35,529,192 | |||||
Balance at Dec. 31, 2018 | $ 21,914,722 | $ 3,955,167 | $ (271,245) | $ (25,040,050) | $ 558,594 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - CAD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
CASH FLOWS FROM OPERATING ACTIVITIES | |||
Net Profit (Loss) for the Year | $ (104,156) | $ (6,261,382) | $ 64,247 |
Adjustments to Net Profit (Loss) for Non-Cash Items: | |||
Amortization – intangibles | 1,051,928 | 1,003,485 | |
Share-based payments | 162,489 | 371,513 | |
Unrealized foreign exchange loss (gain) | 32,378 | (1,410) | 61,166 |
Lease inducement | (23,147) | (21,147) | 57,673 |
Bad debt | 732,254 | ||
Long term deposit | 300,000 | ||
Depreciation - property and equipment | 18,369 | 6,644 | 7,297 |
Loss on asset acquisition | 80,819 | ||
Impairment loss – intangible assets | 1,948,082 | ||
Impairment loss – goodwill | 139,618 | ||
Loss on disposition of property and equipment | 2,670 | ||
Operating Profit (Loss) before Working Capital Changes | 85,933 | (1,653,081) | 1,196,538 |
Working Capital Adjustments: | |||
Accounts and grants receivable | 57,008 | 1,429,133 | (1,083,394) |
Prepaid and other receivables | 103,943 | 374,364 | (91,692) |
Accounts payable | (176,602) | 28,867 | 22,777 |
Accrued liabilities | 12,402 | (94,580) | (105,458) |
Contract liability | 131,564 | ||
Cash Generated from (Used in) Operating Activities | 214,248 | 84,702 | (61,229) |
CASH FLOWS FROM INVESTING ACTIVITIES | |||
Long-term deposit | (300,000) | ||
Cash (net) paid for acquisition | 9,355 | ||
Expenditures on software, web development and content development costs | 0 | (1,798,687) | |
Purchase of property and equipment | (7,839) | (926) | (8,632) |
Cash Used in Investing Activities | (7,839) | 8,429 | (2,107,319) |
CASH FLOWS FROM FINANCING ACTIVITIES | |||
Proceeds from stock option exercise | 52,567 | ||
Proceeds from warrant exercise | 2,221,262 | ||
Proceeds from loans | 420,000 | 1,460,000 | 150,000 |
Repayment of loans | (720,000) | (1,310,000) | (580,000) |
Cash Generated from Financing Activities | (300,000) | 150,000 | 1,843,829 |
NET INCREASE (DECREASE) IN CASH | (93,591) | 243,131 | (324,719) |
Cash at the Beginning of the Year | 327,434 | 84,303 | 409,022 |
Cash at the End of the Year | $ 233,843 | $ 327,434 | $ 84,303 |
Note 1 - Corporate Information
Note 1 - Corporate Information | 12 Months Ended |
Dec. 31, 2018 | |
Statement Line Items [Line Items] | |
Disclosure of basis of consolidation [text block] | 1. CORPORATE INFORMATION Lingo Media Corporation (“Lingo Media” or the “Company”) is a publicly listed company incorporated in Canada with limited liability under the legislation of the Province of Ontario and its shares are listed on the TSX Venture Exchange and inter-listed on the OTC Marketplace. The consolidated financial statements of the Company as at and for the year ended December 31, 2018 Speak2Me Lingo Media is an EdTech company that is ‘ Changing the way the world learns English two The head office, principal address and registered and records office of the Company is located at 151 703, M5S 1S4. |
Note 2 - Basis of Preparation
Note 2 - Basis of Preparation | 12 Months Ended |
Dec. 31, 2018 | |
Statement Line Items [Line Items] | |
Disclosure of basis of preparation of financial statements [text block] | 2. BASIS OF PREPARATION 2.1 Statement of compliance These consolidated financial statements of the Company have been prepared in accordance with International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board (“IASB”) and interpretations of the IFRS Interpretations Committee (“IFRIC”). These consolidated financial statements were authorized by the Board of Directors on April 30, 2019. 2.2 Basis of measurement These consolidated financial statements have been prepared on the historical cost basis except as provided in note 4. 2.3 Basis of consolidation The consolidated financial statements comprise the financial statements of the Company and its wholly- owned subsidiaries controlled by the Company (the “Group”). Control exists when the Company is exposed to, or has the rights to variable returns from its involvement with the entity and has the ability to affect these returns through its power over the entity. Subsidiaries are fully consolidated from the date of acquisition, being the date on which the Group obtains control, and continue to be consolidated until the date when such control ceases. The financial statements of the subsidiaries are prepared for the same reporting period as the parent company, using consistent accounting policies. All inter-group balances, transactions, unrealized gains and losses resulting from inter-group transactions and dividends are eliminated in full. 2.4 Functional and presentation currency The functional currency is the currency of the primary economic environment in which the entity operates and has been determined for each entity within the Group. These consolidated financial statements are presented in Canadian Dollars, which is the Company’s functional currency. The functional currency of ELL Technologies Limited and Lingo Group Limited are United States Dollar (“USD”). All other subsidiaries’ functional currency is Canadian Dollar (“CAD”). The functional currency determinations were conducted through an analysis of the consideration factors identified in IAS 21, |
Note 3 - Significant Accounting
Note 3 - Significant Accounting Judgments, Estimates and Assumptions | 12 Months Ended |
Dec. 31, 2018 | |
Statement Line Items [Line Items] | |
Disclosure of accounting judgements and estimates [text block] | 3. SIGNIFICANT ACCOUNTING JUDGEMENTS, ESTIMATES AND ASSUMPTIONS The preparation of the Company’s consolidated financial statements in conformity with IFRS requires management to make judgements, estimates and assumptions that affect the application of accounting policies, reported amounts of assets, liabilities and contingent liabilities, revenues and expenses at the date of the consolidated financial statements and during the reporting period. Estimates and assumptions are continuously evaluated and are based on management’s historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. However, actual outcomes can differ from these estimates. Revisions to accounting estimates are recognized in the period in which the estimate is revised if the revision affects only that period or in the period of the revision and further periods if the review affects both current and future periods. Information about critical judgements and estimates in applying accounting policies that have the most significant effect on the amounts recognized in the consolidated financial statements is included in the following notes: ● Determination of functional currency ● Determination of expected credit loss ● Recognition of internally developed intangibles ● Recognition of government grant and grant receivable ● Recognition of deferred tax assets ● Valuation of share-based payments |
Note 4 - Summary of Significant
Note 4 - Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2018 | |
Statement Line Items [Line Items] | |
Disclosure of significant accounting policies [text block] | 4. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 4.1 Revenue recognition Recently Adopted IFRS 15, 15” On January 1, 2018, 15 15, five 1. Identify the contract with a customer; 2. Identify the performance obligations in the contract; 3. Determine the transaction price; 4. Allocate the transaction price to the performance obligations in the contract; and 5. Recognize revenue when (or as) the entity satisfies a performance obligation. The new standard also provides guidance relating to principal versus agent relationships, licenses of intellectual property, contract costs and the measurement and recognition of gains and losses on the sale of certain non-financial assets such as property and equipment. Additional disclosures are also required under the new standard. The Company completed a detailed assessment of its customer contracts as at January 1, 2018 no 18 13. January 1, 2018 not one one Revenue recognition Revenue is recognized upon transfer of control of promised goods or services to customers in an amount that reflects the consideration we expect to receive in exchange for those goods or services. The Company enters into contracts that can include various combinations of goods and services, which are generally capable of being distinct and accounted for as separate performance obligations. A product or service is distinct if the customer can benefit from it on its own or together with other readily available resources and the promise to transfer the good or service is separately identifiable from other promises in the contractual arrangement with the customer. Non-distinct goods and services are combined with other goods or services until they are distinct as a bundle and therefore form a single performance obligation. The consideration (including any discounts) is allocated between separate goods and services in a bundle on a relative basis based on their standalone selling prices (“SSP”). Revenue is recognized net of any taxes collected from customers, which are subsequently remitted to governmental authorities. In addition to these general policies, the specific revenue recognition policies for each major category of revenue are included below. License of intellectual property Royalty revenues primarily consist of revenues received from the license of intellectual property for print-based and audiovisual learning products. Royalty revenues are recognized based on the confirmation of sales by the Company’s co-publishing partners, and when the underlying sale occurs. Training and support services provided for royalty contracts are delivered in advance of the underlying sale occurring, and, as such, royalty revenue is recognized when the underlying sale occurs, being the later of the satisfaction of the performance obligation and the underlying sale. Royalty revenues are not Online based licenses Online based licensing revenue is generated from contracts with customers. The Company provides the right to access to hosted software over a contract term without the customer taking possession of the software. Revenue recognition commences on the date an executed contract exists and the customer has the right to access to the hosted software. Online based licensing revenues are generated by Online Language Learning segment and relate to short-term contracts. Offline licenses Offline licensing revenue is generated from contracts with customers. Offline licenses provides the right to use perpetual language-learning software and is recognized at the point in time when the software is made available to the customer. When providing offline licenses, the customer can direct the use of, and obtain substantially all of the remaining benefits from, the license at the point in time at which the license is made available to the customer and the right to use the software has commenced. Offline license revenues are generated by Online English Language Learning segment and relate to short-term contracts. Costs to Obtain a Contract with a Customer The Company recognizes an asset for the incremental costs of obtaining a contract with a customer if the Company expects the costs to be recoverable. The Company has determined that sales commissions meet the requirements to be capitalized. These capitalized costs are amortized consistent with the pattern of transfer to the customer for the goods and services to which the asset relates. Amortization of the asset is included in cost of sales in the consolidated statements of operations. Applying the practical expedient, the Company recognizes the incremental costs of obtaining contracts as an expense when incurred if the amortization period of the assets that we otherwise would have recognized is one Contract Assets and Liabilities The payment terms and conditions in our customer contracts may Significant Judgments The Company distributes its products and services both directly to the end customer and indirectly through resellers. The Company evaluates each of its reseller relationships to determine whether it is the principal (where revenue is recognized at the gross amount) or agent (where revenue is recognized net of the reseller commission). In making this determination, the Company evaluates a variety of factors including the amount of control the Company is able to exercise over the transactions. The Company concluded that it acts as principal in all contracts with customers. The recognition of revenue requires judgement in the assessment of performance obligations within a contract and the assessment of recognizing at a point in time or over a period of time. The following table summarize the impacts of adopting IFRS 15 December 31, 2018 no December 31, 2018. December 31, 2018 Note As reported Adjustments Amounts without adoption of IFRS 15 Assets Prepaid and other receivables $ 101,539 $ 25,610 $ 75,929 Total Assets 1,302,004 25,610 1,276,394 Liabilities Contract liabilities 11 217,259 217,259 - Total Liabilities 743,410 217,259 526,151 Equity Deficit (25,040,050 ) (191,649 ) (24,848,402 ) Total equity 558,594 (191,649 ) 750,243 Total equity and liabilities 1,302,004 25,610 1,276,394 Impact on the consolidated statement of comprehensive income (loss) For the year ended Note As reported Adjustments Amounts without adoption of IFRS 15 Revenue $ 1,940,182 $ (126,400 ) $ 2,066,582 Direct costs 271,020 (20,445 ) 291,465 Net Profit / (Loss) for the Year (104,156 ) 105,955 1,799 Total Comprehensive Income (Loss) (71,954 ) 105,955 34,001 4.2 Comprehensive income (loss) Comprehensive income (loss) measures net profit for the period plus other comprehensive income. Other comprehensive income (loss) consists of changes in equity, such as changes to foreign currency translation adjustments of foreign operations during the period. Amounts reported as other comprehensive income are accumulated in a separate component of shareholders’ equity as accumulated other comprehensive income. 4.3 Property and equipment Property and equipment are initially recorded at cost. Depreciation is provided using methods outlined below at rates intended to depreciate the cost of assets over their estimated useful lives. Method Rate Computer and office equipment Declining balance 20 Leasehold improvement Straight line over the term of the lease 4.4 Software and web development costs The Company capitalizes all costs related to the development of its fee-based English Language Learning products and services when the feasibility and profitability of the project can be reasonably considered certain. Expenditure on development activities, whereby research findings are applied to a plan or design for the production of new or substantially improved products and processes, is capitalized if the product or process is technically and commercially feasible and the Group has sufficient resources to complete development. The expenditure capitalized includes the cost of material, and direct labour. Other development expenditure is recognized in the statement of comprehensive income (loss) as an expense as incurred. 4.5 Content development costs The Company capitalizes all costs related to content development of its fee-based English Language Learning products and services when the feasibility and profitability of the project can be reasonably considered certain. Expenditure on content development activities, whereby research findings are applied to a plan or design for the production of new or substantially improved products and processes, is capitalized if the product or process is technically and commercially feasible and the Group has sufficient resources to complete development. The expenditure capitalized includes the cost of material, and direct labour. Other development expenditure is recognized in the statement of comprehensive income (loss) as an expense as incurred. 4.6 Government grants The Company receives government grants based on certain eligibility criteria for book publishing industry development in Canada. These government grants are recognized quarterly and are recorded as a reduction of general and administrative expenses to offset direct costs funded by the grant during the period in which the criteria to receive the grant is met. The Company records a liability for the repayment of the grants and a charge to operations in the period in which conditions arise that will cause the government grants to be repayable. 4.7 Current and deferred income taxes Income tax on the profit or loss for the periods presented comprises current and deferred tax. Income tax is recognized in profit or loss except to the extent that it relates to items recognized directly in equity, in which case it is recognized in equity. Current tax expense is the expected tax payable on the taxable income for the year, using tax rates enacted or substantively enacted at period end, adjusted for amendments to tax payable with regards to previous years. Deferred taxation is recognized using the liability method on temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for taxation purposes. However, the deferred taxation is not A deferred tax asset is recognized to the extent that it is probable that future taxable profits will be available against which the temporary difference can be utilized. Deferred tax assets are reviewed at each reporting date and are reduced to the extent that it is no Deferred income tax is provided on temporary differences arising on investments in subsidiaries, associates and joint ventures, except where the timing of the reversal of the temporary difference is controlled by the Company and it is probable that the temporary difference will not Deferred tax assets and deferred tax liabilities are offset, if a legally enforceable right exists to offset current income tax assets against current income tax liabilities and the deferred taxes relate to the same taxable entity and the same taxation authority. 4.8 Foreign currency translation Foreign currency transactions are initially recorded in the functional currency at the transaction date exchange rate. At the balance sheet date, monetary assets and liabilities denominated in a foreign currency are translated into the functional currency at the reporting date exchange rate. Foreign exchange gains and losses resulting from the settlement of such transactions and from the remeasurement of monetary items at year-end exchange rates are recognized in the income statement. Non-monetary items measured at historical cost are translated using the historical exchange rate. Non-monetary items measured at fair value are translated using the exchange rates at the date when fair value was determined. Financial statements of subsidiaries, affiliates and joint ventures for which the functional currency is not Foreign exchange gains or losses arising from a monetary item receivable from or payable to a foreign operation, the settlement of which is neither planned nor likely to occur in the foreseeable future and which in substance is considered to form part of the net investment in the foreign operation, are recognized in other comprehensive income (loss). 4.9 Earnings (loss) per share Earnings (loss) per share is computed by dividing the earnings (loss) for the year by the weighted average number of common shares outstanding during the year, including contingently issuable shares which are included when the conditions necessary for issuance have been met. Diluted earnings per share is calculated in a similar manner, except that the weighted average number of common shares outstanding is increased to include potentially issuable common shares from the assumed exercise of common share purchase options and warrants, if dilutive. 4.10 Share-based compensation plan The share-based compensation plan allows the Company executives, management, employees and consultants to acquire shares of the Company. The fair value of share-based payment awards granted is recognized as management, employee or consultant expense with a corresponding increase in equity. An individual is classified as an employee when the individual is an employee for legal or tax purposes (direct employee) or provides services similar to those performed by a direct employee. Each tranche in an award is considered a separate award with its own vesting period and grant date fair value. The fair value is measured at grant date and each tranche is recognized on a graded vesting basis over the period during which the share purchase options vest. The fair value of the share-based payment awards granted is measured using the Black-Scholes option pricing model taking into account the terms and conditions upon which the awards were granted. At each financial position reporting date, the amount recognized as an expense is adjusted to reflect the actual number of awards, for which the related service and non-market vesting conditions are expected to be met. For equity-settled share-based payment transactions with consultants, the Company measures the goods or services received, and the corresponding increase in equity, directly, at the fair value of the goods or services received, unless that fair value cannot be estimated reliably, in which cases, the Company measures their value, and the corresponding increase in equity, indirectly, by reference to the fair value of the equity instruments granted. 4.11 Financial instruments The Company has adopted IFRS 9 January 1, 2018. A financial asset shall be measured at amortized cost if it is held with the objective of holding assets in order to collect contractual cash flows which arise on specified dates and that are solely principal and interest. A debt investment shall be measured at fair value through other comprehensive income if it is held with the objective of holding assets in order to collect contractual cash flows which arise on specified dates that are solely principal and interest as well as selling the asset on the basis of its fair value. All other financial assets are classified and measured at fair value through profit or loss (“FVPL”)unless the Company makes an irrevocable election on initial recognition to present gains and losses on equity instruments (that are not Despite these requirements, a financial asset may New simpler hedge accounting requirements are intended to more closely align the accounting treatment with the risk management activities of the entity. New impairment requirements use an “expected credit loss” (“ECL”) model to recognize an allowance. Impairment is measured using a 12 For receivables, a simplified approach to measuring expected credit losses using a lifetime expected loss allowance is available. The investment classifications “Available-for-sale financial assets” and “Held-to-maturity investments” are no no December 31, 2017. The Company completed a detailed assessment of its financial assets and liabilities as at January 1, 2018. 39 9: Original Classifcation (IAS 39 New Classification (IFRS 9 Financial assets Cash FVTPL Amortized cost Accounts receivable Loans and receivables Amortized cost Financial liabilities Accounts payable Other financial liabilities Amortized cost Accrued liabilities Other financial liabilities Amortized cost The adoption of IFRS 9 no Trade and other receivables Trade receivables are initially recognized at fair value and subsequently measured at amortized cost using the effective interest method, less any allowance for expected credit losses. Trade receivables are generally due for settlement within 60 Other receivables are recognized at amortized cost, less any allowance for expected credit losses. 4.12 Impairment of long-lived assets The Company’s property and equipment and intangibles with finite lives are reviewed for an indication of impairment at each balance sheet date. The Company’s intangible assets that have an indefinite life or are not not An impairment loss is recognized when the carrying amount of an asset, or its cash-generating unit, exceeds its recoverable amount. A cash-generating unit 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. Impairment losses are recognized in profit and loss for the period. An impairment loss, other than goodwill impairment, is reversed if there is an indication that 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 no Goodwill represented the excess of the cost of an acquisition over the fair value of the Company’s share of identifiable net assets of the acquired subsidiary at the date of acquisition. Goodwill was carried at cost less accumulated impairment losses. Goodwill was allocated to each cash generating unit (“CGU”) or group of CGUs that are expected to benefit from the related business combination. A group of CGUs represents the lowest level within the entity at which the goodwill is monitored for internal management purposes, which is not An impairment loss recognized for goodwill is not 4.13 Leases Leases are classified as either finance or operating. Leases that transfer substantially all of the risks and benefits of ownership of the leased asset to the Company are classified as finance leases. Finance leases are capitalized at the lease’s commencement at the lower of fair value of the leased asset and the present value of the minimum lease payments. Leases in which a significant portion of the risks and rewards of ownership are retained by the lessor are classified as operating leases. Rental payments, net of any incentives received from the lessor, are charged to earnings on a straight-line basis over the period of the lease. 4.14 Warrants From time to time, the Company may |
Note 5 - Recent Accounting Pron
Note 5 - Recent Accounting Pronouncements | 12 Months Ended |
Dec. 31, 2018 | |
Statement Line Items [Line Items] | |
Disclosure of changes in accounting policies [text block] | 5. RECENT ACCOUNTING PRONOUNCEMENTS The following pronouncements issued by the IASB and interpretations published by IFRIC became effective for annual periods beginning on or after January 1, 2019. Effective for periods beginning on or after January 1, 2019 IFRS 16, 17, 12 not not 16 January 1, 2019. The Company has not may |
Note 6 - Accounts and Grants Re
Note 6 - Accounts and Grants Receivable | 12 Months Ended |
Dec. 31, 2018 | |
Statement Line Items [Line Items] | |
Disclosure of trade and other receivables [text block] | 6. ACCOUNTS AND GRANTS RECEIVABLE December 31, 201 8 December 31, 2017 Trade receivable $ 913,458 $ 947,911 Government grants receivable (Note 17) - 22,556 $ 913,458 $ 970,467 As at December 31, 2018, $148,500 2017 $252,093 30 not |
Note 7 - Property and Equipment
Note 7 - Property and Equipment | 12 Months Ended |
Dec. 31, 2018 | |
Statement Line Items [Line Items] | |
Disclosure of property, plant and equipment [text block] | 7. PROPERTY AND EQUIPMENT Computer and office equipment Leasehold Improvements Total Cost, January 1 , 2017 $ 80,713 $ - $ 80,713 Additions 9,923 - 9,923 Effect of foreign exchange (849 ) - (849 ) Cost, December 31, 201 7 $ 89,787 $ - $ 89,787 Additions 7,839 33,180 41,019 Effect of foreign exchange 249 - 249 Cost, December 31, 201 8 $ 97,875 $ 33,180 $ 131,055 Accumulated depreciation, January 1, 201 7 $ 53,225 $ - $ 53,225 Charge for the year 6,644 - 6,644 Effect of foreign exchange (771 ) - (771 ) Accumulated depreciation, December 31, 201 7 $ 59,098 $ - $ 59,098 Charge for the year 6,756 11,613 18,369 Effect of foreign exchange 424 - 424 Accumulated depreciation, December 31, 201 8 $ 66,278 $ 11,613 $ 77,891 Net book value, December 31, 201 7 $ 30,689 $ - $ 30,689 Net book value, December 31, 201 8 $ 31,597 $ 21,567 $ 53,164 |
Note 8 - Intangibles
Note 8 - Intangibles | 12 Months Ended |
Dec. 31, 2018 | |
Statement Line Items [Line Items] | |
Disclosure of intangible assets [text block] | 8. INTANGIBLES Software and Web Development Content Platform Content Development Total Cost, January 1, 2016 $ 8,631,006 $ 1,477,112 $ 1,288,495 $ 11,396,613 Additions 613,162 - 1,185,525 1,798,687 Effect of foreign exchange (5,081 ) - - (5,081 ) Cost, December 31, 2016 9,239,087 1,477,112 2,474,020 13,190,219 Cost, December 31, 2017 $ 9,239,087 $ 1,477,112 $ 2,474,020 $ 13,190,219 Accumulated amortization January 1, $ 7,622,225 $ 1,477,112 $ 91,532 $ 9,190,869 Charge for the year 611,865 - 391,620 1,003,485 Effect of foreign exchange (4,144 ) - - (4,144 ) Accumulated amortization December 31, 2016 8,229,946 1,477,112 483,152 10,190,210 Charge for the year 557,124 - 494,804 1,051,928 Impairment 452,018 - 1,496,064 1,948,082 Accumulated amortization and impairment December 31, $ 9,239,088 $ 1,477,112 $ 2,474,020 $ 13,190,219 Net book value, December 31, 2016 $ 1,009,142 $ - $ 1,990,868 $ 3,000,009 Net book value, December 31, 2017 and 2018 $ - $ - $ - $ - The Company began commercial production and sale of its services and products during 2009. 2017, $Nil 2016 $1,798,687 five not three five The Company previously capitalized all development costs related to its software web development, content platform, and content development through to December 31, 2016. December 31, 2017, not may not December 31, 2017 not December 31, 2017. 9 |
Note 9 - Goodwill
Note 9 - Goodwill | 12 Months Ended |
Dec. 31, 2018 | |
Statement Line Items [Line Items] | |
Disclosure of goodwill [text block] | 9. GOODWILL On May 13, 2010, $1,385,000. $139,618. The recoverable amount of each CGU is based on a value in use computation. The cash flow forecasts employed for this computation are extracted from a budget document approved by the Board of Directors, and specifically exclude incremental profits and other cash flows stemming from future acquisitions. The 2017 five 2017 7% five 2017 2016 8% 2% no five 14.9% 2016 14.9% As a result of the Company’s annual impairment test, it was determined that impairment existed for the goodwill ascribed to the ELL Technologies CGU in 2017. $139,618 2017 2016 $nil 8 $1,948,082 2016 $nil December 31, 2017, |
Note 10 - Acquisition
Note 10 - Acquisition | 12 Months Ended |
Dec. 31, 2018 | |
Statement Line Items [Line Items] | |
Disclosure of business combinations [text block] | 10. ACQUISITION During 2017, $100 $80,918. $80,818. |
Note 11 - Contract Liabilities
Note 11 - Contract Liabilities | 12 Months Ended |
Dec. 31, 2018 | |
Statement Line Items [Line Items] | |
Disclosure of revenue from contracts with customers [text block] | 11. CONTRACT LIABILIT IES The following table presents changes in the contract liabilities balance: Balance, December 31, 2017 $ - Adjustment on initial application of IFRS 15 90,860 Adjusted balance, January 1, 2018 90,860 Amounts invoices and revenue deferred as at December 31, 2018 207,073 Recognition of deferred revenue included in the adjusted balance at the beginning of the period (80,673 ) Balance, December 31, 2018 (note 4.1) $ 217,259 |
Note 12 - Loans Payable
Note 12 - Loans Payable | 12 Months Ended |
Dec. 31, 2018 | |
Statement Line Items [Line Items] | |
Disclosure of borrowings [text block] | 12. LOANS PAYABLE December 31, 20 18 December 31, 201 7 Loans payable, interest bearing at 12% per annum with monthly interest payments, due on demand (note 24) $ - $ 300,000 $ - $ 300,000 |
Note 13 - Share Capital
Note 13 - Share Capital | 12 Months Ended |
Dec. 31, 2018 | |
Statement Line Items [Line Items] | |
Disclosure of share capital, reserves and other equity interest [text block] | 13. SHARE CAPITAL a) Authorized Unlimited number of preference shares with no Unlimited number of common shares with no b) Common shares - Transactions: (i) On March 4, 2011, 2,500,000 $0.60 1,158,668 $2,195,200 one one one $0.75 September 4, 2012. July 5, 2011 $1.20 10 On August 23, 2012, 18 March 4, 2014 February 21, 2014, 2 March 4, 2016 2016, 600,000 $450,000, March 4, 2016. (ii) On May 11, 2011, 1,875,000 $0.60 $1,125,000 one one one $0.75 November 11, 2012. September 11, 2011 $1.20 10 On August 23, 2012, 18 May 11, 2014 February 21, 2014, 2 May 11, 2016 2016, 1,811,683 $1,358,762, May 11, 2016. (iii) On April 17, 2015, 5,000,000 $0.10 $500,000. one one one $0.125 April 17, 2016. 4 April 17, 2015. 400,000 $40,000. 2016, 3,300,000 $412,500, April 17, 2016. c) Stock options exercise In 2016, 299,166 one $0.13, $0.14, $0.24 $0.66 $52,567. $0.0674, $0.0721, $0.1443 $0.5174 $0.18. d) Warrants exercise In 2016, 5,711,683 one $0.125 $0.75 $2,221,262. $0.014, $0.241 $0.272. $0.39. |
Note 14 - Share-based Payments
Note 14 - Share-based Payments | 12 Months Ended |
Dec. 31, 2018 | |
Statement Line Items [Line Items] | |
Disclosure of share-based payment arrangements [text block] | 14. SHARE-BASED PAYMENTS In December 2017, “2017 2017 may 2017 7,105,838 1996 2000 2005 2009 2011 The maximum number of common shares that may one 2017 5% The exercise price of each option cannot be less than the market price of the shares on the day immediately preceding the day of the grant less any permitted discount. The exercise period of the options granted cannot exceed 10 2017 not may, 2017 may Number of Options Weighted Average Exercise Price Weighted Average Remaining Contract Life (Years) Outstanding as at January 1, 201 6 3,602,501 $ 0.33 1.35 Granted 700,000 0.69 0.64 Expired (957,500 ) 0.81 0.60 Forfeited (1,000,000 ) 0.66 0.53 Exercised (299,166 ) 0.18 - Outstanding as at January 1, 201 7 2,045,835 $ 0.18 0.86 Granted 4,012,000 0.21 2.76 Expired (2,049,085 ) 0.18 - Forfeited (9,750 ) 0.24 2.34 Outstanding as at January 1, 201 8 3,999,000 $ 0.21 2.77 Granted 2,920,000 0.07 2.89 Expired (25,000 ) 0.23 - Forfeited (90,000 ) 0.23 - Outstanding as at December 31, 201 8 6,804,000 $ 0.19 2.26 Options exercisable as at December 31, 201 6 1,820,835 $ 0.19 Options exercisable as at December 31, 201 7 2,577,000 $ 0.21 Options exercisable as at December 31, 201 8 4,566,000 $ 0.19 The weighted average remaining contractual life for the stock options outstanding as at December 31, 2018 2.26 2017 2.77 2016 0.86 December 31, 2018 $0.07 $0.23 2017 $0.20 $0.23, 2016 $0.14 $0.24 2018 $0.0436 2017 $0.12, 2016 $0.26 The vesting periods on the options granted on December 20, 2018 25% November 20, 2018, 9 three 2017, 1,995,000 185,000 1,832,000 3 three 2016, nine The pricing model assumes the weighted average risk free interest rates of 2.19% 2017 1.39%, 2016 0.44% nil 2017 nil, 2016 nil 98% 2017 97%, 2016 107% 0% 2017 0%, 2016 0% $0.07 2017 $0.20, 2016 $0.70 $0.07 2017 $0.21, 2016 $0.69 3 2017 3 2016 1.57 |
Note 15 - Earnings (Loss) Per S
Note 15 - Earnings (Loss) Per Share | 12 Months Ended |
Dec. 31, 2018 | |
Statement Line Items [Line Items] | |
Disclosure of earnings per share [text block] | 15. EARNINGS (LOSS) PER SHARE The income and weighted average number of common shares used in the calculation of basic and diluted income (loss) per share for the years ended December 31, 2018, 2017, 2016 201 8 2017 2016 Weighted average number of common shares used as the denominator in calculating basic earnings per share 35,529,192 35,529,192 33,987,383 Adjustments for calculation of diluted earnings per share: Options - - 814,609 Warrants - - 149,701 Weighted average number of common shares and potential common shares used as the denominator in calculating diluted earnings per share 35,529,192 35,529,192 34,951,693 Basic earnings (loss) per share $ 0.00 $ (0.18 ) $ 0.00 Diluted earnings (loss) per share $ 0.00 $ (0.18 ) $ 0.00 |
Note 16 - Income Taxes
Note 16 - Income Taxes | 12 Months Ended |
Dec. 31, 2018 | |
Statement Line Items [Line Items] | |
Disclosure of income tax [text block] | 16. INCOME TAXES The provision for income taxes reflects an effective income tax rate, which differs from the Canadian corporate income tax rate as follows: 201 8 2017 2016 Combined basic Canadian federal and provincial income tax rate 26.5 % 26.50 % 26.50 % Effective income tax taxes $ (27,602 ) $ (1,659,267 ) $ 17,025 Increase (decrease) resulting from change in the deferred tax assets not recognized 1,839,000 1,302,000 424,000 Withholding tax 189,534 178,022 186,832 Non-deductible items 46,369 676,242 62,601 Change in prior year estimates (1,576,767 ) (318,975 ) (502,753 ) $ 189,534 $ 178,022 $ 187,705 The tax effect of temporary differences representing deferred tax assets is as follows: 201 8 2017 Deferred tax assets: Loss carry forwards $ 8,146,000 $ 6,307,000 8,146,000 6,307,000 Deferred tax assets not recognized (8,145,000 ) (6,306,000 ) Deferred tax assets recognized 1,000 1,000 Property and equipment (1,000 ) (1,000 ) Net deferred tax assets $ - $ - Deferred tax assets and liabilities will be impacted by changes in tax laws and rates. The effects of these changes are not not Management considers projected taxable income, uncertainties related to the industry in which the Company operates and tax planning strategies in making this assessment. The Company has not At December 31, 2018, $25,312,000. 2026 $ 233,000 2027 788,000 2028 2,163,000 2029 2,991,000 2030 4,356,000 2031 4,646,000 2032 1,188,000 2033 806,000 2034 436,000 2035 54,000 2036 420,000 2037 7,070,000 2038 161,000 $ 25,312,000 The Company has capital loss of $1,334,000 $4,662,000 $2,345,000 |
Note 17 - Government Grants
Note 17 - Government Grants | 12 Months Ended |
Dec. 31, 2018 | |
Statement Line Items [Line Items] | |
Disclosure of government grants [text block] | 17. GOVERNMENT GRANTS Included as a reduction of selling, general and administrative expenses are government grants of $242,813 2017 $232,413, 2016 $229,694 $nil 2017 $22,556, 2016 $21,847 One government grant for the print-based English language learning segment is repayable in the event that the segment’s annual net income before tax for the current year and the previous two 15% 2018 2017, not no One grant, relating to the Company’s “Development of Comprehensive, Interactive Phonetic English Learning Solution” project, is repayable semi-annually at a royalty rate of 2.5% 100% No 2018, 2017 2016 no |
Note 18 - Financial Instruments
Note 18 - Financial Instruments | 12 Months Ended |
Dec. 31, 2018 | |
Statement Line Items [Line Items] | |
Disclosure of financial instruments [text block] | 18. FINANCIAL INSTRUMENTS a. Fair values The carrying value of cash and accounts and grants receivable, approximates their fair value due to the liquidity of these instruments. The carrying values of accounts payables and accrued liabilities and loans payables approximate their fair value due to the requirement to extinguish the liabilities on demand or payable within a year. b. Financial risk management objectives and policies The financial risk arising from the Company’s operations are currency risk, liquidity risk and credit risk. These risks arise from the normal course of operations and all transactions undertaken are to support the Group’s ability to continue as a going concern. The risks associated with these financial instruments and the policies on how to mitigate these risks are as follows: c. Foreign currency risk Foreign currency risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in foreign exchange rates. The Company’s exposure to the risk of changes in foreign exchange rates relates primarily to the Company’s monetary assets and liabilities denominated in currencies other than the Canadian Dollar and the Company’s net investments in foreign subsidiaries. The Company operates internationally and is exposed to foreign exchange risk as certain expenditures are denominated in non-Canadian Dollar currencies. The Company has been exposed to this fluctuation and has not A 10% $63,030 2017 $67,000 10% December 31, 2018 December 31, 2018 2018 2017 USD USD Cash 14,741 122,319 Accounts receivable 660,704 518,999 Accounts payable 189,586 104,225 Accrued liabilities 23,882 - d. Liquidity Risk The Company manages its liquidity risk by preparing and monitoring forecasts of cash expenditures to ensure that it will have sufficient liquidity to meet liabilities when due. The Company’s accounts payable and accrued liabilities generally have maturities of less than 90 December 31, 2018, $233,843 2017 $327,434 $913,458 2017 $970,467 $743,410 2017 $980,318 e. Credit Risk Credit risk refers to the risk that one December 31, 2018, $913,458 2017 $970,467 12 1 |
Note 19 - Major Customer
Note 19 - Major Customer | 12 Months Ended |
Dec. 31, 2018 | |
Statement Line Items [Line Items] | |
Disclosure of major customers [text block] | 19. MAJOR CUSTOMER The Company had sales to a major customer in 2018 2017, 80% 2017 59%, 2016 54% December 31, 2018 89% 2017 84%, 2016 52% |
Note 20 - Capital Management
Note 20 - Capital Management | 12 Months Ended |
Dec. 31, 2018 | |
Statement Line Items [Line Items] | |
Disclosure of objectives, policies and processes for managing capital [text block] | 20. CAPITAL MANAGEMENT The Company’s primary objectives when managing capital are to (a) safeguard the Company’s ability to develop, market, distribute and sell English language learning products, and (b) provide a sound capital structure for raising capital at a reasonable cost for the funding of ongoing development of its products and new growth initiatives. The Board of Directors does not The Company includes equity, comprised of issued share capital, warrants, share-based payments reserve and deficit, in the definition of capital. The Company is dependent on cash flow from co-publishing and licensing agreements and external financing to fund its activities. In order to carry out planned development of its products and pay for administrative costs, the Company will spend its existing working capital and raise additional amounts as needed. Management reviews its capital management approach on an ongoing basis and believes that this approach, given the relative size of the Company, is reasonable. There has been no 2017 2016. |
Note 21 - Segmented Information
Note 21 - Segmented Information | 12 Months Ended |
Dec. 31, 2018 | |
Statement Line Items [Line Items] | |
Disclosure of entity's operating segments [text block] | 21. SEGMENTED INFORMATION The Company operates two License of intellectual property: Lingo Learning is a print-based publisher of English language learning textbook programs in China. It earns significantly higher royalties from Licensing Sales compared to Finished Product Sales. Online and offline Language Learning: ELL Technologies is a global web-based educational technology (“EdTech”) language learning, training, and assessment company. The Company provides the right to access to hosted software over a contract term without the customer taking possession of the software. The Company also provides Offline licenses for the right to use perpetual language-learning. Transactions between operating segments and reporting segement are recorded at the exchange amount and eliminated upon consolidation. 2018 Online English Language Learning Print-Based English Language Learning Head Office Total Segmented assets $ 141,238 $ 1,087,463 $ 73,303 $ 1,302,004 Segmented liabilities 348,214 160,750 234,446 743,410 Segmented revenue - online 206,955 - - 206,955 Segmented revenue – offline 8,012 - 8,012 Segmented revenue – royalty 38,701 1,686,514 1,725,215 Segmented direct costs 180,832 90,188 - 271,020 Segmented selling, general & administrative 348,436 64,580 787,750 1,200,766 Segmented intangible amortization - - - - Segmented other expense 10,918 196,079 905 207,902 Segmented impairment - - - - Segmented profit (loss) (475,131 ) 1,335,666 (788,655 ) 71,879 201 7 Online English Language Learning Print-Based English Language Learning Head Office Total Segmented assets $ 189,200 $ 1,257,239 $ 87,633 $ 1,534,072 Segmented liabilities 228,418 164,294 587,606 980,318 Segmented revenue 1,088,197 1,688,571 - 2,776,768 Segmented direct costs 134,695 90,923 - 225,618 Segmented selling, general & administrative 455,915 97,404 814,834 1,368,153 Segmented intangible amortization 1,051,928 - - 1,051,928 Segmented other expense 1,074 182,461 1,131 184,666 Segmented impairment 2,087,700 - 2,087,700 Segmented profit (loss) (6,148,195 ) 1,317,783 (815,965 ) (5,646,377 ) 2 01 6 Online English Language Learning Print-Based English Language Learning Head Office Total Segmented assets $ 4,521,560 $ 1,675,740 $ 978,892 $ 7,176,192 Segmented liabilities 206,784 198,315 326,059 731,158 Segmented revenue 1,456,421 1,738,800 - 3,195,221 Segmented direct costs 167,597 217,787 - 385,384 Segmented selling, general & administrative 168,161 295,549 901,025 1,364,735 Segmented intangible amortization 1,003,485 - - 1,003,485 Segmented other expense 806 192,658 1,539 195,003 Segmented profit 116,372 1,032,806 (902,564 ) 246,614 Segmented intangible addition 1,798,687 - - 1,798,687 Other Financial Items 201 8 2017 2016 Print-Based English Language Learning segment income $ 1,335,666 $ 1,317,783 $ 1,032,806 Online English Language Learning segment income (loss) (475,131 ) (6,148,195 ) 116,372 Head Office (788,655 ) (815,965 ) (902,564 ) Foreign exchange gain (loss) 38,351 (189,783 ) (146,599 ) Interest and other financial (51,898 ) (53,709 ) (35,768 ) Share-based payments (162,489 ) (371,513 ) - Other comprehensive income (loss) 32,202 (1,410 ) 60,173 Total Comprehensive Income (Loss) $ (71,954 ) $ (6,262,792 ) $ 124,420 Revenue by Geographic Region 201 8 2017 2016 Latin America $ 187,008 $ 997,661 $ 821,762 China 1,702,249 1,712,079 2,252,170 Other 50,925 67,028 121,289 $ 1,940,182 $ 2,776,768 $ 3,195,221 Identifiable Non-Current Assets by Geographic Region 201 8 2017 2016 Canada $ 52,131 $ 29,804 $ 3,467,115 China 1,033 885 - $ 53,164 $ 30,689 $ 3,467,115 |
Note 22 - Commitments and Conti
Note 22 - Commitments and Contingency | 12 Months Ended |
Dec. 31, 2018 | |
Statement Line Items [Line Items] | |
Disclosure of commitments and contingent liabilities [text block] | 22. COMMITMENTS AND CONTINGENCY The Company has future minimum lease payments under operating leases for premises and equipment as follows: 2019 $ 225,471 2020 219,036 2021 38,306 The rent expense associated with operating leases for premise and equipment is recognized on a straight-line basis. |
Note 23 - Supplemental Cash Flo
Note 23 - Supplemental Cash Flow Information | 12 Months Ended |
Dec. 31, 2018 | |
Statement Line Items [Line Items] | |
Disclosure of supplemental cash flow information [text block] | 23. SUPPLEMENTAL CASH FLOW INFORMATION 201 8 2017 2016 Income taxes and other taxes paid $ 189,534 $ 178,022 $ 187,705 Interest paid $ 51,898 $ 41,650 $ 25,103 |
Note 24 - Related Party Balance
Note 24 - Related Party Balances and Transactions | 12 Months Ended |
Dec. 31, 2018 | |
Statement Line Items [Line Items] | |
Disclosure of transactions between related parties [text block] | 24. RELATED PARTY BALANCES AND TRANSACTIONS During the year, the Company had the following transactions with related parties, made in the normal course of operations, and accounted for at an amount of consideration established and agreed to by the Company and related parties. a. The Company charged $165,726 2017 $52,001, 2016 $33,020 four b. Key management compensation was $360,672 2017 $360,023, 2016 $480,577 $17,065 2017 $3,121, 2016 $nil nil $2017 $508,000, 2016 $nil c. At the year end, the Company had fully repaid unsecured loans bearing interest at 12% 2017 $150,000, 2016 $50,000 $420,000 $720,000 $42,133 2017 $4,586, 2016 $351 $25,988 2017 nil, 2016 nil |
Significant Accounting Policies
Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2018 | |
Discloure of Significant Accounting Policies | |
Description of accounting policy for recognition of revenue [text block] | 4.1 Revenue recognition Recently Adopted IFRS 15, 15” On January 1, 2018, 15 15, five 1. Identify the contract with a customer; 2. Identify the performance obligations in the contract; 3. Determine the transaction price; 4. Allocate the transaction price to the performance obligations in the contract; and 5. Recognize revenue when (or as) the entity satisfies a performance obligation. The new standard also provides guidance relating to principal versus agent relationships, licenses of intellectual property, contract costs and the measurement and recognition of gains and losses on the sale of certain non-financial assets such as property and equipment. Additional disclosures are also required under the new standard. The Company completed a detailed assessment of its customer contracts as at January 1, 2018 no 18 13. January 1, 2018 not one one Revenue recognition Revenue is recognized upon transfer of control of promised goods or services to customers in an amount that reflects the consideration we expect to receive in exchange for those goods or services. The Company enters into contracts that can include various combinations of goods and services, which are generally capable of being distinct and accounted for as separate performance obligations. A product or service is distinct if the customer can benefit from it on its own or together with other readily available resources and the promise to transfer the good or service is separately identifiable from other promises in the contractual arrangement with the customer. Non-distinct goods and services are combined with other goods or services until they are distinct as a bundle and therefore form a single performance obligation. The consideration (including any discounts) is allocated between separate goods and services in a bundle on a relative basis based on their standalone selling prices (“SSP”). Revenue is recognized net of any taxes collected from customers, which are subsequently remitted to governmental authorities. In addition to these general policies, the specific revenue recognition policies for each major category of revenue are included below. License of intellectual property Royalty revenues primarily consist of revenues received from the license of intellectual property for print-based and audiovisual learning products. Royalty revenues are recognized based on the confirmation of sales by the Company’s co-publishing partners, and when the underlying sale occurs. Training and support services provided for royalty contracts are delivered in advance of the underlying sale occurring, and, as such, royalty revenue is recognized when the underlying sale occurs, being the later of the satisfaction of the performance obligation and the underlying sale. Royalty revenues are not Online based licenses Online based licensing revenue is generated from contracts with customers. The Company provides the right to access to hosted software over a contract term without the customer taking possession of the software. Revenue recognition commences on the date an executed contract exists and the customer has the right to access to the hosted software. Online based licensing revenues are generated by Online Language Learning segment and relate to short-term contracts. Offline licenses Offline licensing revenue is generated from contracts with customers. Offline licenses provides the right to use perpetual language-learning software and is recognized at the point in time when the software is made available to the customer. When providing offline licenses, the customer can direct the use of, and obtain substantially all of the remaining benefits from, the license at the point in time at which the license is made available to the customer and the right to use the software has commenced. Offline license revenues are generated by Online English Language Learning segment and relate to short-term contracts. Costs to Obtain a Contract with a Customer The Company recognizes an asset for the incremental costs of obtaining a contract with a customer if the Company expects the costs to be recoverable. The Company has determined that sales commissions meet the requirements to be capitalized. These capitalized costs are amortized consistent with the pattern of transfer to the customer for the goods and services to which the asset relates. Amortization of the asset is included in cost of sales in the consolidated statements of operations. Applying the practical expedient, the Company recognizes the incremental costs of obtaining contracts as an expense when incurred if the amortization period of the assets that we otherwise would have recognized is one Contract Assets and Liabilities The payment terms and conditions in our customer contracts may Significant Judgments The Company distributes its products and services both directly to the end customer and indirectly through resellers. The Company evaluates each of its reseller relationships to determine whether it is the principal (where revenue is recognized at the gross amount) or agent (where revenue is recognized net of the reseller commission). In making this determination, the Company evaluates a variety of factors including the amount of control the Company is able to exercise over the transactions. The Company concluded that it acts as principal in all contracts with customers. The recognition of revenue requires judgement in the assessment of performance obligations within a contract and the assessment of recognizing at a point in time or over a period of time. The following table summarize the impacts of adopting IFRS 15 December 31, 2018 no December 31, 2018. December 31, 2018 Note As reported Adjustments Amounts without adoption of IFRS 15 Assets Prepaid and other receivables $ 101,539 $ 25,610 $ 75,929 Total Assets 1,302,004 25,610 1,276,394 Liabilities Contract liabilities 11 217,259 217,259 - Total Liabilities 743,410 217,259 526,151 Equity Deficit (25,040,050 ) (191,649 ) (24,848,402 ) Total equity 558,594 (191,649 ) 750,243 Total equity and liabilities 1,302,004 25,610 1,276,394 Impact on the consolidated statement of comprehensive income (loss) For the year ended Note As reported Adjustments Amounts without adoption of IFRS 15 Revenue $ 1,940,182 $ (126,400 ) $ 2,066,582 Direct costs 271,020 (20,445 ) 291,465 Net Profit / (Loss) for the Year (104,156 ) 105,955 1,799 Total Comprehensive Income (Loss) (71,954 ) 105,955 34,001 |
Description of accounting policy for comprehensive income [text block] | 4.2 Comprehensive income (loss) Comprehensive income (loss) measures net profit for the period plus other comprehensive income. Other comprehensive income (loss) consists of changes in equity, such as changes to foreign currency translation adjustments of foreign operations during the period. Amounts reported as other comprehensive income are accumulated in a separate component of shareholders’ equity as accumulated other comprehensive income. |
Description of accounting policy for property, plant and equipment [text block] | 4.3 Property and equipment Property and equipment are initially recorded at cost. Depreciation is provided using methods outlined below at rates intended to depreciate the cost of assets over their estimated useful lives. Method Rate Computer and office equipment Declining balance 20 Leasehold improvement Straight line over the term of the lease |
Description of accounting policy for software and web development costs [text block] | 4.4 Software and web development costs The Company capitalizes all costs related to the development of its fee-based English Language Learning products and services when the feasibility and profitability of the project can be reasonably considered certain. Expenditure on development activities, whereby research findings are applied to a plan or design for the production of new or substantially improved products and processes, is capitalized if the product or process is technically and commercially feasible and the Group has sufficient resources to complete development. The expenditure capitalized includes the cost of material, and direct labour. Other development expenditure is recognized in the statement of comprehensive income (loss) as an expense as incurred. |
Description of accounting policy for content development costs [text block] | 4.5 Content development costs The Company capitalizes all costs related to content development of its fee-based English Language Learning products and services when the feasibility and profitability of the project can be reasonably considered certain. Expenditure on content development activities, whereby research findings are applied to a plan or design for the production of new or substantially improved products and processes, is capitalized if the product or process is technically and commercially feasible and the Group has sufficient resources to complete development. The expenditure capitalized includes the cost of material, and direct labour. Other development expenditure is recognized in the statement of comprehensive income (loss) as an expense as incurred. |
Description of accounting policy for government grants [text block] | 4.6 Government grants The Company receives government grants based on certain eligibility criteria for book publishing industry development in Canada. These government grants are recognized quarterly and are recorded as a reduction of general and administrative expenses to offset direct costs funded by the grant during the period in which the criteria to receive the grant is met. The Company records a liability for the repayment of the grants and a charge to operations in the period in which conditions arise that will cause the government grants to be repayable. |
Description of accounting policy for income tax [text block] | 4.7 Current and deferred income taxes Income tax on the profit or loss for the periods presented comprises current and deferred tax. Income tax is recognized in profit or loss except to the extent that it relates to items recognized directly in equity, in which case it is recognized in equity. Current tax expense is the expected tax payable on the taxable income for the year, using tax rates enacted or substantively enacted at period end, adjusted for amendments to tax payable with regards to previous years. Deferred taxation is recognized using the liability method on temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for taxation purposes. However, the deferred taxation is not A deferred tax asset is recognized to the extent that it is probable that future taxable profits will be available against which the temporary difference can be utilized. Deferred tax assets are reviewed at each reporting date and are reduced to the extent that it is no Deferred income tax is provided on temporary differences arising on investments in subsidiaries, associates and joint ventures, except where the timing of the reversal of the temporary difference is controlled by the Company and it is probable that the temporary difference will not Deferred tax assets and deferred tax liabilities are offset, if a legally enforceable right exists to offset current income tax assets against current income tax liabilities and the deferred taxes relate to the same taxable entity and the same taxation authority. |
Description of accounting policy for foreign currency translation [text block] | 4.8 Foreign currency translation Foreign currency transactions are initially recorded in the functional currency at the transaction date exchange rate. At the balance sheet date, monetary assets and liabilities denominated in a foreign currency are translated into the functional currency at the reporting date exchange rate. Foreign exchange gains and losses resulting from the settlement of such transactions and from the remeasurement of monetary items at year-end exchange rates are recognized in the income statement. Non-monetary items measured at historical cost are translated using the historical exchange rate. Non-monetary items measured at fair value are translated using the exchange rates at the date when fair value was determined. Financial statements of subsidiaries, affiliates and joint ventures for which the functional currency is not Foreign exchange gains or losses arising from a monetary item receivable from or payable to a foreign operation, the settlement of which is neither planned nor likely to occur in the foreseeable future and which in substance is considered to form part of the net investment in the foreign operation, are recognized in other comprehensive income (loss). |
Description of accounting policy for earnings per share [text block] | 4.9 Earnings (loss) per share Earnings (loss) per share is computed by dividing the earnings (loss) for the year by the weighted average number of common shares outstanding during the year, including contingently issuable shares which are included when the conditions necessary for issuance have been met. Diluted earnings per share is calculated in a similar manner, except that the weighted average number of common shares outstanding is increased to include potentially issuable common shares from the assumed exercise of common share purchase options and warrants, if dilutive. |
Description of accounting policy for share-based payment transactions [text block] | 4.10 Share-based compensation plan The share-based compensation plan allows the Company executives, management, employees and consultants to acquire shares of the Company. The fair value of share-based payment awards granted is recognized as management, employee or consultant expense with a corresponding increase in equity. An individual is classified as an employee when the individual is an employee for legal or tax purposes (direct employee) or provides services similar to those performed by a direct employee. Each tranche in an award is considered a separate award with its own vesting period and grant date fair value. The fair value is measured at grant date and each tranche is recognized on a graded vesting basis over the period during which the share purchase options vest. The fair value of the share-based payment awards granted is measured using the Black-Scholes option pricing model taking into account the terms and conditions upon which the awards were granted. At each financial position reporting date, the amount recognized as an expense is adjusted to reflect the actual number of awards, for which the related service and non-market vesting conditions are expected to be met. For equity-settled share-based payment transactions with consultants, the Company measures the goods or services received, and the corresponding increase in equity, directly, at the fair value of the goods or services received, unless that fair value cannot be estimated reliably, in which cases, the Company measures their value, and the corresponding increase in equity, indirectly, by reference to the fair value of the equity instruments granted. |
Description of accounting policy for financial instruments [text block] | 4.11 Financial instruments The Company has adopted IFRS 9 January 1, 2018. A financial asset shall be measured at amortized cost if it is held with the objective of holding assets in order to collect contractual cash flows which arise on specified dates and that are solely principal and interest. A debt investment shall be measured at fair value through other comprehensive income if it is held with the objective of holding assets in order to collect contractual cash flows which arise on specified dates that are solely principal and interest as well as selling the asset on the basis of its fair value. All other financial assets are classified and measured at fair value through profit or loss (“FVPL”)unless the Company makes an irrevocable election on initial recognition to present gains and losses on equity instruments (that are not Despite these requirements, a financial asset may New simpler hedge accounting requirements are intended to more closely align the accounting treatment with the risk management activities of the entity. New impairment requirements use an “expected credit loss” (“ECL”) model to recognize an allowance. Impairment is measured using a 12 For receivables, a simplified approach to measuring expected credit losses using a lifetime expected loss allowance is available. The investment classifications “Available-for-sale financial assets” and “Held-to-maturity investments” are no no December 31, 2017. The Company completed a detailed assessment of its financial assets and liabilities as at January 1, 2018. 39 9: Original Classifcation (IAS 39 New Classification (IFRS 9 Financial assets Cash FVTPL Amortized cost Accounts receivable Loans and receivables Amortized cost Financial liabilities Accounts payable Other financial liabilities Amortized cost Accrued liabilities Other financial liabilities Amortized cost The adoption of IFRS 9 no Trade and other receivables Trade receivables are initially recognized at fair value and subsequently measured at amortized cost using the effective interest method, less any allowance for expected credit losses. Trade receivables are generally due for settlement within 60 Other receivables are recognized at amortized cost, less any allowance for expected credit losses. |
Description of accounting policy for impairment of assets [text block] | 4.12 Impairment of long-lived assets The Company’s property and equipment and intangibles with finite lives are reviewed for an indication of impairment at each balance sheet date. The Company’s intangible assets that have an indefinite life or are not not An impairment loss is recognized when the carrying amount of an asset, or its cash-generating unit, exceeds its recoverable amount. A cash-generating unit 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. Impairment losses are recognized in profit and loss for the period. An impairment loss, other than goodwill impairment, is reversed if there is an indication that 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 no Goodwill represented the excess of the cost of an acquisition over the fair value of the Company’s share of identifiable net assets of the acquired subsidiary at the date of acquisition. Goodwill was carried at cost less accumulated impairment losses. Goodwill was allocated to each cash generating unit (“CGU”) or group of CGUs that are expected to benefit from the related business combination. A group of CGUs represents the lowest level within the entity at which the goodwill is monitored for internal management purposes, which is not An impairment loss recognized for goodwill is not |
Description of accounting policy for leases [text block] | 4.13 Leases Leases are classified as either finance or operating. Leases that transfer substantially all of the risks and benefits of ownership of the leased asset to the Company are classified as finance leases. Finance leases are capitalized at the lease’s commencement at the lower of fair value of the leased asset and the present value of the minimum lease payments. Leases in which a significant portion of the risks and rewards of ownership are retained by the lessor are classified as operating leases. Rental payments, net of any incentives received from the lessor, are charged to earnings on a straight-line basis over the period of the lease. |
Description of accounting policy for warrants [text block] | 4.14 Warrants From time to time, the Company may |
Note 4 - Summary of Significa_2
Note 4 - Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Statement Line Items [Line Items] | |
Disclosure of the effect of adoption of new accounting pronouncuement [text block] | December 31, 2018 Note As reported Adjustments Amounts without adoption of IFRS 15 Assets Prepaid and other receivables $ 101,539 $ 25,610 $ 75,929 Total Assets 1,302,004 25,610 1,276,394 Liabilities Contract liabilities 11 217,259 217,259 - Total Liabilities 743,410 217,259 526,151 Equity Deficit (25,040,050 ) (191,649 ) (24,848,402 ) Total equity 558,594 (191,649 ) 750,243 Total equity and liabilities 1,302,004 25,610 1,276,394 For the year ended Note As reported Adjustments Amounts without adoption of IFRS 15 Revenue $ 1,940,182 $ (126,400 ) $ 2,066,582 Direct costs 271,020 (20,445 ) 291,465 Net Profit / (Loss) for the Year (104,156 ) 105,955 1,799 Total Comprehensive Income (Loss) (71,954 ) 105,955 34,001 |
Note 6 - Accounts and Grants _2
Note 6 - Accounts and Grants Receivable (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Statement Line Items [Line Items] | |
Schedule of accounts and grants receivable [text block] | December 31, 201 8 December 31, 2017 Trade receivable $ 913,458 $ 947,911 Government grants receivable (Note 17) - 22,556 $ 913,458 $ 970,467 |
Note 7 - Property and Equipme_2
Note 7 - Property and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Statement Line Items [Line Items] | |
Disclosure of detailed information about property, plant and equipment [text block] | Computer and office equipment Leasehold Improvements Total Cost, January 1 , 2017 $ 80,713 $ - $ 80,713 Additions 9,923 - 9,923 Effect of foreign exchange (849 ) - (849 ) Cost, December 31, 201 7 $ 89,787 $ - $ 89,787 Additions 7,839 33,180 41,019 Effect of foreign exchange 249 - 249 Cost, December 31, 201 8 $ 97,875 $ 33,180 $ 131,055 Accumulated depreciation, January 1, 201 7 $ 53,225 $ - $ 53,225 Charge for the year 6,644 - 6,644 Effect of foreign exchange (771 ) - (771 ) Accumulated depreciation, December 31, 201 7 $ 59,098 $ - $ 59,098 Charge for the year 6,756 11,613 18,369 Effect of foreign exchange 424 - 424 Accumulated depreciation, December 31, 201 8 $ 66,278 $ 11,613 $ 77,891 Net book value, December 31, 201 7 $ 30,689 $ - $ 30,689 Net book value, December 31, 201 8 $ 31,597 $ 21,567 $ 53,164 |
Note 8 - Intangibles (Tables)
Note 8 - Intangibles (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Statement Line Items [Line Items] | |
Disclosure of detailed information about intangible assets [text block] | Software and Web Development Content Platform Content Development Total Cost, January 1, 2016 $ 8,631,006 $ 1,477,112 $ 1,288,495 $ 11,396,613 Additions 613,162 - 1,185,525 1,798,687 Effect of foreign exchange (5,081 ) - - (5,081 ) Cost, December 31, 2016 9,239,087 1,477,112 2,474,020 13,190,219 Cost, December 31, 2017 $ 9,239,087 $ 1,477,112 $ 2,474,020 $ 13,190,219 Accumulated amortization January 1, $ 7,622,225 $ 1,477,112 $ 91,532 $ 9,190,869 Charge for the year 611,865 - 391,620 1,003,485 Effect of foreign exchange (4,144 ) - - (4,144 ) Accumulated amortization December 31, 2016 8,229,946 1,477,112 483,152 10,190,210 Charge for the year 557,124 - 494,804 1,051,928 Impairment 452,018 - 1,496,064 1,948,082 Accumulated amortization and impairment December 31, $ 9,239,088 $ 1,477,112 $ 2,474,020 $ 13,190,219 Net book value, December 31, 2016 $ 1,009,142 $ - $ 1,990,868 $ 3,000,009 Net book value, December 31, 2017 and 2018 $ - $ - $ - $ - |
Note 11 - Contract Liabilities
Note 11 - Contract Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Statement Line Items [Line Items] | |
Explanation of significant changes in contract assets and contract liabilities [text block] | Balance, December 31, 2017 $ - Adjustment on initial application of IFRS 15 90,860 Adjusted balance, January 1, 2018 90,860 Amounts invoices and revenue deferred as at December 31, 2018 207,073 Recognition of deferred revenue included in the adjusted balance at the beginning of the period (80,673 ) Balance, December 31, 2018 (note 4.1) $ 217,259 |
Note 12 - Loans Payable (Tables
Note 12 - Loans Payable (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Statement Line Items [Line Items] | |
Disclosure of detailed information about borrowings [text block] | December 31, 20 18 December 31, 201 7 Loans payable, interest bearing at 12% per annum with monthly interest payments, due on demand (note 24) $ - $ 300,000 $ - $ 300,000 |
Note 14 - Share-based Payments
Note 14 - Share-based Payments (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Statement Line Items [Line Items] | |
Disclosure of number and weighted average exercise prices of share options [text block] | Number of Options Weighted Average Exercise Price Weighted Average Remaining Contract Life (Years) Outstanding as at January 1, 201 6 3,602,501 $ 0.33 1.35 Granted 700,000 0.69 0.64 Expired (957,500 ) 0.81 0.60 Forfeited (1,000,000 ) 0.66 0.53 Exercised (299,166 ) 0.18 - Outstanding as at January 1, 201 7 2,045,835 $ 0.18 0.86 Granted 4,012,000 0.21 2.76 Expired (2,049,085 ) 0.18 - Forfeited (9,750 ) 0.24 2.34 Outstanding as at January 1, 201 8 3,999,000 $ 0.21 2.77 Granted 2,920,000 0.07 2.89 Expired (25,000 ) 0.23 - Forfeited (90,000 ) 0.23 - Outstanding as at December 31, 201 8 6,804,000 $ 0.19 2.26 Options exercisable as at December 31, 201 6 1,820,835 $ 0.19 Options exercisable as at December 31, 201 7 2,577,000 $ 0.21 Options exercisable as at December 31, 201 8 4,566,000 $ 0.19 |
Note 15 - Earnings (Loss) Per_2
Note 15 - Earnings (Loss) Per Share (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Statement Line Items [Line Items] | |
Earnings per share [text block] | 201 8 2017 2016 Weighted average number of common shares used as the denominator in calculating basic earnings per share 35,529,192 35,529,192 33,987,383 Adjustments for calculation of diluted earnings per share: Options - - 814,609 Warrants - - 149,701 Weighted average number of common shares and potential common shares used as the denominator in calculating diluted earnings per share 35,529,192 35,529,192 34,951,693 Basic earnings (loss) per share $ 0.00 $ (0.18 ) $ 0.00 Diluted earnings (loss) per share $ 0.00 $ (0.18 ) $ 0.00 |
Note 16 - Income Taxes (Tables)
Note 16 - Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Statement Line Items [Line Items] | |
Schedule of effective income tax rate reconciliation [text block] | 201 8 2017 2016 Combined basic Canadian federal and provincial income tax rate 26.5 % 26.50 % 26.50 % Effective income tax taxes $ (27,602 ) $ (1,659,267 ) $ 17,025 Increase (decrease) resulting from change in the deferred tax assets not recognized 1,839,000 1,302,000 424,000 Withholding tax 189,534 178,022 186,832 Non-deductible items 46,369 676,242 62,601 Change in prior year estimates (1,576,767 ) (318,975 ) (502,753 ) $ 189,534 $ 178,022 $ 187,705 |
Disclosure of temporary difference, unused tax losses and unused tax credits [text block] | 201 8 2017 Deferred tax assets: Loss carry forwards $ 8,146,000 $ 6,307,000 8,146,000 6,307,000 Deferred tax assets not recognized (8,145,000 ) (6,306,000 ) Deferred tax assets recognized 1,000 1,000 Property and equipment (1,000 ) (1,000 ) Net deferred tax assets $ - $ - |
Schedule of unusued tax losses [text block] | 2026 $ 233,000 2027 788,000 2028 2,163,000 2029 2,991,000 2030 4,356,000 2031 4,646,000 2032 1,188,000 2033 806,000 2034 436,000 2035 54,000 2036 420,000 2037 7,070,000 2038 161,000 $ 25,312,000 |
Note 18 - Financial Instrumen_2
Note 18 - Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Statement Line Items [Line Items] | |
Disclosure of detailed information about financial instruments [text block] | 2018 2017 USD USD Cash 14,741 122,319 Accounts receivable 660,704 518,999 Accounts payable 189,586 104,225 Accrued liabilities 23,882 - |
Note 21 - Segmented Informati_2
Note 21 - Segmented Information (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Statement Line Items [Line Items] | |
Disclosure of operating segments [text block] | 2018 Online English Language Learning Print-Based English Language Learning Head Office Total Segmented assets $ 141,238 $ 1,087,463 $ 73,303 $ 1,302,004 Segmented liabilities 348,214 160,750 234,446 743,410 Segmented revenue - online 206,955 - - 206,955 Segmented revenue – offline 8,012 - 8,012 Segmented revenue – royalty 38,701 1,686,514 1,725,215 Segmented direct costs 180,832 90,188 - 271,020 Segmented selling, general & administrative 348,436 64,580 787,750 1,200,766 Segmented intangible amortization - - - - Segmented other expense 10,918 196,079 905 207,902 Segmented impairment - - - - Segmented profit (loss) (475,131 ) 1,335,666 (788,655 ) 71,879 201 7 Online English Language Learning Print-Based English Language Learning Head Office Total Segmented assets $ 189,200 $ 1,257,239 $ 87,633 $ 1,534,072 Segmented liabilities 228,418 164,294 587,606 980,318 Segmented revenue 1,088,197 1,688,571 - 2,776,768 Segmented direct costs 134,695 90,923 - 225,618 Segmented selling, general & administrative 455,915 97,404 814,834 1,368,153 Segmented intangible amortization 1,051,928 - - 1,051,928 Segmented other expense 1,074 182,461 1,131 184,666 Segmented impairment 2,087,700 - 2,087,700 Segmented profit (loss) (6,148,195 ) 1,317,783 (815,965 ) (5,646,377 ) 2 01 6 Online English Language Learning Print-Based English Language Learning Head Office Total Segmented assets $ 4,521,560 $ 1,675,740 $ 978,892 $ 7,176,192 Segmented liabilities 206,784 198,315 326,059 731,158 Segmented revenue 1,456,421 1,738,800 - 3,195,221 Segmented direct costs 167,597 217,787 - 385,384 Segmented selling, general & administrative 168,161 295,549 901,025 1,364,735 Segmented intangible amortization 1,003,485 - - 1,003,485 Segmented other expense 806 192,658 1,539 195,003 Segmented profit 116,372 1,032,806 (902,564 ) 246,614 Segmented intangible addition 1,798,687 - - 1,798,687 Other Financial Items 201 8 2017 2016 Print-Based English Language Learning segment income $ 1,335,666 $ 1,317,783 $ 1,032,806 Online English Language Learning segment income (loss) (475,131 ) (6,148,195 ) 116,372 Head Office (788,655 ) (815,965 ) (902,564 ) Foreign exchange gain (loss) 38,351 (189,783 ) (146,599 ) Interest and other financial (51,898 ) (53,709 ) (35,768 ) Share-based payments (162,489 ) (371,513 ) - Other comprehensive income (loss) 32,202 (1,410 ) 60,173 Total Comprehensive Income (Loss) $ (71,954 ) $ (6,262,792 ) $ 124,420 |
Disclosure of geographical areas [text block] | 201 8 2017 2016 Latin America $ 187,008 $ 997,661 $ 821,762 China 1,702,249 1,712,079 2,252,170 Other 50,925 67,028 121,289 $ 1,940,182 $ 2,776,768 $ 3,195,221 201 8 2017 2016 Canada $ 52,131 $ 29,804 $ 3,467,115 China 1,033 885 - $ 53,164 $ 30,689 $ 3,467,115 |
Note 22 - Commitments and Con_2
Note 22 - Commitments and Contingency (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Statement Line Items [Line Items] | |
Disclosure of finance lease and operating lease by lessee [text block] | 2019 $ 225,471 2020 219,036 2021 38,306 |
Note 23 - Supplemental Cash F_2
Note 23 - Supplemental Cash Flow Information (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Statement Line Items [Line Items] | |
Disclosure of supplemental cash flows schedule [text block] | 201 8 2017 2016 Income taxes and other taxes paid $ 189,534 $ 178,022 $ 187,705 Interest paid $ 51,898 $ 41,650 $ 25,103 |
Note 1 - Corporate Information
Note 1 - Corporate Information (Details Textual) | 12 Months Ended |
Dec. 31, 2018 | |
Statement Line Items [Line Items] | |
Number of reportable segments | 2 |
Note 4 - Summary of Significa_3
Note 4 - Summary of Significant Accounting Policies (Details Textual) | Dec. 31, 2018 |
Computer and office equipment [member] | |
Statement Line Items [Line Items] | |
Depreciation percentage | 20.00% |
Note 4 - Summary of Significa_4
Note 4 - Summary of Significant Accounting Policies - Impacts of Adopting IFRS 15 (Details) - CAD ($) | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Assets | ||||
Prepaid and other receivables | $ 101,539 | $ 205,482 | ||
Total Assets | 1,302,004 | 1,534,072 | $ 7,176,192 | |
Liabilities | ||||
Contract liabilities | 217,259 | |||
Total Liabilities | 743,410 | 980,318 | 731,158 | |
Equity | ||||
Deficit | (25,040,050) | (24,850,199) | ||
Total equity | 558,594 | 553,754 | 6,445,033 | $ 4,046,784 |
Total equity and liabilities | 1,302,004 | 1,534,072 | ||
Revenue | 1,940,182 | 2,776,768 | 3,195,221 | |
Direct costs | 271,020 | 225,618 | 385,384 | |
Net Profit / (Loss) for the Year | (104,156) | (5,839,869) | 434,319 | |
Total Comprehensive Income (Loss) | (71,954) | $ (6,262,792) | $ 124,420 | |
Increase (decrease) due to application of IFRS 15 [member] | ||||
Assets | ||||
Prepaid and other receivables | 25,610 | |||
Total Assets | 25,610 | |||
Liabilities | ||||
Contract liabilities | 217,259 | |||
Total Liabilities | 217,259 | |||
Equity | ||||
Deficit | (191,649) | |||
Total equity | (191,649) | |||
Total equity and liabilities | 25,610 | |||
Revenue | (126,400) | |||
Direct costs | (20,445) | |||
Net Profit / (Loss) for the Year | 105,955 | |||
Total Comprehensive Income (Loss) | 105,955 | |||
IAS 18 [member] | ||||
Assets | ||||
Prepaid and other receivables | 75,929 | |||
Total Assets | 1,276,394 | |||
Liabilities | ||||
Contract liabilities | ||||
Total Liabilities | 526,151 | |||
Equity | ||||
Deficit | (24,848,402) | |||
Total equity | 750,243 | |||
Total equity and liabilities | 1,276,394 | |||
Revenue | 2,066,582 | |||
Direct costs | 291,465 | |||
Net Profit / (Loss) for the Year | 1,799 | |||
Total Comprehensive Income (Loss) | $ 34,001 |
Note 6 - Accounts and Grants _3
Note 6 - Accounts and Grants Receivable (Details Textual) - CAD ($) | Dec. 31, 2018 | Dec. 31, 2017 |
Later than one month [member] | ||
Statement Line Items [Line Items] | ||
Trade receivables | $ 148,500 | $ 252,093 |
Note 6 - Accounts and Grants _4
Note 6 - Accounts and Grants Receivable - Schedule of Receivables (Details) - CAD ($) | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Statement Line Items [Line Items] | |||
Trade receivable | $ 913,458 | $ 947,911 | |
Government grants receivable (Note 17) | 0 | 22,556 | $ 21,847 |
$ 913,458 | $ 970,467 |
Note 7 - Property and Equipme_3
Note 7 - Property and Equipment - Schedule of Property and Equipment (Details) - CAD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Statement Line Items [Line Items] | ||
Balance | $ 30,689 | |
Balance | 53,164 | $ 30,689 |
Computer and office equipment [member] | ||
Statement Line Items [Line Items] | ||
Balance | 30,689 | |
Balance | 31,597 | 30,689 |
Leasehold improvements [member] | ||
Statement Line Items [Line Items] | ||
Balance | ||
Balance | 21,567 | |
Gross carrying amount [member] | ||
Statement Line Items [Line Items] | ||
Balance | 89,787 | 80,713 |
Additions | 41,019 | 9,923 |
Effect of foreign exchange | 249 | (849) |
Balance | 131,055 | 89,787 |
Gross carrying amount [member] | Computer and office equipment [member] | ||
Statement Line Items [Line Items] | ||
Balance | 89,787 | 80,713 |
Additions | 7,839 | 9,923 |
Effect of foreign exchange | 249 | (849) |
Balance | 97,875 | 89,787 |
Gross carrying amount [member] | Leasehold improvements [member] | ||
Statement Line Items [Line Items] | ||
Balance | ||
Additions | 33,180 | |
Effect of foreign exchange | ||
Balance | 33,180 | |
Accumulated depreciation, amortisation and impairment [member] | ||
Statement Line Items [Line Items] | ||
Balance | 59,098 | 53,225 |
Effect of foreign exchange | 424 | (771) |
Charge for the year | 18,369 | 6,644 |
Balance | 77,891 | 59,098 |
Accumulated depreciation, amortisation and impairment [member] | Computer and office equipment [member] | ||
Statement Line Items [Line Items] | ||
Balance | 59,098 | 53,225 |
Effect of foreign exchange | 424 | (771) |
Charge for the year | 6,756 | 6,644 |
Balance | 66,278 | 59,098 |
Accumulated depreciation, amortisation and impairment [member] | Leasehold improvements [member] | ||
Statement Line Items [Line Items] | ||
Balance | ||
Effect of foreign exchange | ||
Charge for the year | 11,613 | |
Balance | $ 11,613 |
Note 8 - Intangibles (Details T
Note 8 - Intangibles (Details Textual) - CAD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Statement Line Items [Line Items] | |||
Purchase of intangible assets | $ 0 | $ 1,798,687 |
Note 8 - Intangibles - Schedule
Note 8 - Intangibles - Schedule of Intangibles (Details) - CAD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Statement Line Items [Line Items] | |||
Balance | $ 3,000,009 | ||
Additions | $ 1,798,687 | ||
Impairment | 1,948,082 | ||
Balance | 3,000,009 | ||
Software and web development [member] | |||
Statement Line Items [Line Items] | |||
Balance | 1,009,142 | ||
Balance | 1,009,142 | ||
Content platform [member] | |||
Statement Line Items [Line Items] | |||
Balance | |||
Balance | |||
Content development [member] | |||
Statement Line Items [Line Items] | |||
Balance | 1,990,868 | ||
Balance | 1,990,868 | ||
Gross carrying amount [member] | |||
Statement Line Items [Line Items] | |||
Balance | 13,190,219 | 13,190,219 | 11,396,613 |
Additions | 1,798,687 | ||
Effect of foreign exchange | (5,081) | ||
Balance | 13,190,219 | 13,190,219 | |
Gross carrying amount [member] | Software and web development [member] | |||
Statement Line Items [Line Items] | |||
Balance | 9,239,087 | 9,239,087 | 8,631,006 |
Additions | 613,162 | ||
Effect of foreign exchange | (5,081) | ||
Balance | 9,239,087 | 9,239,087 | |
Gross carrying amount [member] | Content platform [member] | |||
Statement Line Items [Line Items] | |||
Balance | 1,477,112 | 1,477,112 | 1,477,112 |
Additions | |||
Effect of foreign exchange | |||
Balance | 1,477,112 | 1,477,112 | |
Gross carrying amount [member] | Content development [member] | |||
Statement Line Items [Line Items] | |||
Balance | 2,474,020 | 2,474,020 | 1,288,495 |
Additions | 1,185,525 | ||
Effect of foreign exchange | |||
Balance | 2,474,020 | 2,474,020 | |
Accumulated depreciation, amortisation and impairment [member] | |||
Statement Line Items [Line Items] | |||
Balance | 13,190,219 | 10,190,210 | 9,190,869 |
Effect of foreign exchange | (4,144) | ||
Charge for the year | 1,051,928 | 1,003,485 | |
Impairment | 1,948,082 | ||
Balance | 13,190,219 | 10,190,210 | |
Accumulated depreciation, amortisation and impairment [member] | Software and web development [member] | |||
Statement Line Items [Line Items] | |||
Balance | 9,239,088 | 8,229,946 | 7,622,225 |
Effect of foreign exchange | (4,144) | ||
Charge for the year | 557,124 | 611,865 | |
Impairment | 452,018 | ||
Balance | 9,239,088 | 8,229,946 | |
Accumulated depreciation, amortisation and impairment [member] | Content platform [member] | |||
Statement Line Items [Line Items] | |||
Balance | 1,477,112 | 1,477,112 | 1,477,112 |
Effect of foreign exchange | |||
Charge for the year | |||
Impairment | |||
Balance | 1,477,112 | 1,477,112 | |
Accumulated depreciation, amortisation and impairment [member] | Content development [member] | |||
Statement Line Items [Line Items] | |||
Balance | $ 2,474,020 | 483,152 | 91,532 |
Effect of foreign exchange | |||
Charge for the year | 494,804 | 391,620 | |
Impairment | 1,496,064 | ||
Balance | $ 2,474,020 | $ 483,152 |
Note 9 - Goodwill (Details Text
Note 9 - Goodwill (Details Textual) - CAD ($) | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | May 13, 2010 | |
Statement Line Items [Line Items] | ||||
Impairment loss recognised in profit or loss, goodwill | $ 139,618 | |||
Impairment loss recognised in profit or loss, intangible assets other than goodwill | $ 1,948,082 | |||
ELL Technologies Limited [member] | ||||
Statement Line Items [Line Items] | ||||
Total consideration transferred, acquisition-date fair value | $ 1,385,000 | |||
Goodwill at end of period | $ 139,618 | |||
Growth rate used to extrapolate cash flow projections | 7.00% | 8.00% | ||
Actuarial assumption of expected rates of inflation | 2.00% | |||
Discount rate applied to cash flow projections | 14.90% | 14.90% | ||
Impairment loss recognised in profit or loss, goodwill | $ 139,618 | $ 0 | ||
Impairment loss recognised in profit or loss, intangible assets other than goodwill | $ 1,948,082 | $ 0 |
Note 10 - Acquisition (Details
Note 10 - Acquisition (Details Textual) - CAD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Statement Line Items [Line Items] | |||
Gain (loss) that relates to identifiable assets acquired or liabilities assumed in business combination and is of such size, nature or incidence that disclosure is relevant to understanding combined entity's financial statements | $ (80,818) | ||
Vizualize Technologies Corporation [member] | |||
Statement Line Items [Line Items] | |||
Financial assets recognised as of acquisition date | 100 | ||
Financial liabilities recognised as of acquisition date | 80,918 | ||
Gain (loss) that relates to identifiable assets acquired or liabilities assumed in business combination and is of such size, nature or incidence that disclosure is relevant to understanding combined entity's financial statements | $ 80,818 |
Note 11 - Contract Liabilitie_2
Note 11 - Contract Liabilities - Changes in Contract Liabilities (Details) | 12 Months Ended |
Dec. 31, 2018CAD ($) | |
Statement Line Items [Line Items] | |
Balance | $ 90,860 |
Amounts invoices and revenue deferred as at December 31, 2018 | 207,073 |
Recognition of deferred revenue included in the adjusted balance at the beginning of the period | (80,673) |
Balance | 217,259 |
IAS 18 [member] | |
Statement Line Items [Line Items] | |
Balance | 0 |
Increase (decrease) due to application of IFRS 15 [member] | |
Statement Line Items [Line Items] | |
Balance | $ 90,860 |
Note 12 - Loans Payable - Sched
Note 12 - Loans Payable - Schedule of Loans Outstanding (Details) - CAD ($) | Dec. 31, 2018 | Dec. 31, 2017 |
Statement Line Items [Line Items] | ||
Loans payable, interest bearing at 12% per annum with monthly interest payments, due on demand (note 24) | $ 300,000 |
Note 12 - Loans Payable - Sch_2
Note 12 - Loans Payable - Schedule of Loans Outstanding (Details) (Parentheticals) | Dec. 31, 2017 |
Statement Line Items [Line Items] | |
Borrowings, interest rate | 12.00% |
Note 13 - Share Capital (Detail
Note 13 - Share Capital (Details Textual) | Apr. 17, 2015CAD ($)$ / sharesshares | Feb. 21, 2014 | Aug. 23, 2012 | Sep. 11, 2011$ / shares | Jul. 05, 2011$ / shares | May 11, 2011CAD ($)$ / sharesshares | Mar. 04, 2011CAD ($)$ / sharesshares | Dec. 31, 2018CAD ($)$ / shares | Dec. 31, 2017CAD ($) | Dec. 31, 2016CAD ($)$ / sharesshares |
Statement Line Items [Line Items] | ||||||||||
Number of common shares purchasable from a warrant | shares | 1 | |||||||||
Class of warrant or right, exercised in period | shares | 5,711,683 | |||||||||
Proceeds from exercise of warrants | $ 2,221,262 | |||||||||
Number of share options exercised in share-based payment arrangement | 299,166 | |||||||||
Number of common shares exercisable per share option | shares | 1 | |||||||||
Weighted average exercise price of share options exercised in share-based payment arrangement | $ 0.18 | |||||||||
Proceeds from exercise of options | 52,567 | |||||||||
Weighted average share price for share options in share-based payment arrangement exercised during period at date of exercise | 0.18 | |||||||||
Weighted average share price for warrants exercised during period at date of exercise | $ 0.39 | |||||||||
Bottom of range [member] | ||||||||||
Statement Line Items [Line Items] | ||||||||||
Class of warrant or right, exercise price | $ / shares | $ 0.125 | |||||||||
Top of range [member] | ||||||||||
Statement Line Items [Line Items] | ||||||||||
Class of warrant or right, exercise price | $ / shares | $ 0.75 | |||||||||
Exercise price one [member] | ||||||||||
Statement Line Items [Line Items] | ||||||||||
Weighted average exercise price of share options exercised in share-based payment arrangement | $ 0.13 | |||||||||
Weighted average fair value at measurement date, share options granted | 0.0674 | |||||||||
Exercise price two [member] | ||||||||||
Statement Line Items [Line Items] | ||||||||||
Weighted average exercise price of share options exercised in share-based payment arrangement | 0.14 | |||||||||
Weighted average fair value at measurement date, share options granted | 0.0721 | |||||||||
Exercise price three [member] | ||||||||||
Statement Line Items [Line Items] | ||||||||||
Weighted average exercise price of share options exercised in share-based payment arrangement | 0.24 | |||||||||
Weighted average fair value at measurement date, share options granted | 0.1443 | |||||||||
Exercise price four [member] | ||||||||||
Statement Line Items [Line Items] | ||||||||||
Weighted average exercise price of share options exercised in share-based payment arrangement | 0.66 | |||||||||
Weighted average fair value at measurement date, share options granted | $ 0.5174 | |||||||||
Units issued under the first financing [member] | ||||||||||
Statement Line Items [Line Items] | ||||||||||
Issue of equity, private placement, number of units, excluding over-allotment | shares | 2,500,000 | |||||||||
Weighted average unit price | $ / shares | $ 0.60 | |||||||||
Issue of equity, private placement, number of over-allotment units | shares | 1,158,668 | |||||||||
Proceeds from issuing units | $ 2,195,200 | |||||||||
Number of common shares issued per private placement unit | shares | 1 | |||||||||
Number of warrants issued per private placement unit | shares | 1 | |||||||||
Number of common shares purchasable from a warrant | shares | 1 | |||||||||
Class of warrant or right, exercise price | $ / shares | $ 0.75 | |||||||||
Callable warrant, share price trigger | $ / shares | $ 1.20 | |||||||||
Callable warrant, threshold consecutive trading days | 10 | |||||||||
Warrant expiration period, term extension | 2 years | 1 year 180 days | ||||||||
Class of warrant or right, exercised in period | shares | 600,000 | |||||||||
Proceeds from exercise of warrants | $ 450,000 | |||||||||
Units issued under the second financing [member] | ||||||||||
Statement Line Items [Line Items] | ||||||||||
Issue of equity, private placement, number of units, excluding over-allotment | shares | 1,875,000 | |||||||||
Weighted average unit price | $ / shares | $ 0.60 | |||||||||
Proceeds from issuing units | $ 1,125,000 | |||||||||
Number of common shares issued per private placement unit | shares | 1 | |||||||||
Number of warrants issued per private placement unit | shares | 1 | |||||||||
Number of common shares purchasable from a warrant | shares | 1 | |||||||||
Class of warrant or right, exercise price | $ / shares | $ 0.75 | |||||||||
Callable warrant, share price trigger | $ / shares | $ 1.20 | |||||||||
Callable warrant, threshold consecutive trading days | 10 | |||||||||
Warrant expiration period, term extension | 2 years | 1 year 180 days | ||||||||
Class of warrant or right, exercised in period | shares | 1,811,683 | |||||||||
Proceeds from exercise of warrants | $ 1,358,762 | |||||||||
Units issued under the third financing [member] | ||||||||||
Statement Line Items [Line Items] | ||||||||||
Issue of equity, private placement, number of units, excluding over-allotment | shares | 5,000,000 | |||||||||
Weighted average unit price | $ / shares | $ 0.10 | |||||||||
Proceeds from issuing units | $ 500,000 | |||||||||
Number of common shares issued per private placement unit | shares | 1 | |||||||||
Number of warrants issued per private placement unit | shares | 1 | |||||||||
Number of common shares purchasable from a warrant | shares | 1 | |||||||||
Class of warrant or right, exercise price | $ / shares | $ 0.125 | |||||||||
Class of warrant or right, exercised in period | shares | 3,300,000 | |||||||||
Proceeds from exercise of warrants | $ 412,500 | |||||||||
Regulatory hold period for issued securities | 120 days | |||||||||
Units issued under the third financing [member] | Key management personnel of entity or parent [member] | ||||||||||
Statement Line Items [Line Items] | ||||||||||
Issue of equity, private placement, number of units, excluding over-allotment | shares | 400,000 | |||||||||
Proceeds from issuing units | $ 40,000 | |||||||||
Warrant 1 [member] | ||||||||||
Statement Line Items [Line Items] | ||||||||||
Weighted average fair value at measurement date, warrants granted | 0.014 | |||||||||
Warrant 2 [member] | ||||||||||
Statement Line Items [Line Items] | ||||||||||
Weighted average fair value at measurement date, warrants granted | 0.241 | |||||||||
Warrant 3 [member] | ||||||||||
Statement Line Items [Line Items] | ||||||||||
Weighted average fair value at measurement date, warrants granted | $ 0.272 | |||||||||
Preference shares [member] | ||||||||||
Statement Line Items [Line Items] | ||||||||||
Par value per share | $ / shares | $ 0 | |||||||||
Ordinary shares [member] | ||||||||||
Statement Line Items [Line Items] | ||||||||||
Par value per share | $ / shares | $ 0 |
Note 14 - Share-based Payment_2
Note 14 - Share-based Payments (Details Textual) | Dec. 31, 2017CAD ($)shares | Dec. 31, 2018CAD ($) | Dec. 31, 2017CAD ($)shares | Dec. 31, 2016CAD ($) | Dec. 31, 2015 |
Statement Line Items [Line Items] | |||||
Option life, share options granted | 3 | 3 | 1.57 | ||
Weighted average remaining contractual life of outstanding share options | 2.77 | 2.26 | 2.77 | 0.86 | 1.35 |
Share-based payment arrangements, option vesting percentage | 25.00% | ||||
Share-based payment arrangements, option vesting period | 270 days | 270 days | |||
Share-based payment arrangements, option vesting period, required period before vesting begins | 90 days | ||||
Risk free interest rate, share options granted | 2.19% | 1.39% | 0.44% | ||
Expected dividend, share options granted | $ 0 | $ 0 | $ 0 | ||
Expected volatility, share options granted | 98.00% | 97.00% | 107.00% | ||
Forfeiture rate, share options granted | 0.00% | 0.00% | 0.00% | ||
Weighted average share price, share options granted | $ 0.07 | $ 0.20 | $ 0.70 | ||
Exercise price, share options granted | 0.07 | 0.21 | 0.69 | ||
Management, employees, directors and consultants [member] | |||||
Statement Line Items [Line Items] | |||||
Weighted average fair value at measurement date, share options granted | $ 0.12 | 0.0436 | 0.12 | 0.26 | |
Top of range [member] | |||||
Statement Line Items [Line Items] | |||||
Exercise price of outstanding share options | 0.23 | 0.23 | 0.23 | 0.24 | |
Bottom of range [member] | |||||
Statement Line Items [Line Items] | |||||
Exercise price of outstanding share options | $ 0.20 | $ 0.07 | $ 0.20 | $ 0.14 | |
The 2017 Stock Option Plan [member] | |||||
Statement Line Items [Line Items] | |||||
Number of shares reserved for issue under options and contracts for sale of shares | shares | 7,105,838 | 7,105,838 | |||
Share reservation limitations, maximum percentage of allowed reserved shares | 5.00% | 5.00% | |||
The 2017 Stock Option Plan [member] | Top of range [member] | |||||
Statement Line Items [Line Items] | |||||
Option life, share options granted | 10 | ||||
Stock options vested immediately [member] | |||||
Statement Line Items [Line Items] | |||||
Share-based payment arrangement, Options, Vested, Number of Shares | shares | 1,995,000 | ||||
Stock options will vest upon achievements of non-market conditions [member] | |||||
Statement Line Items [Line Items] | |||||
Share-based payment arrangement, Options, Vested, Number of Shares | shares | 185,000 | ||||
Stock options that will vest quarterly over 3 years [member] | |||||
Statement Line Items [Line Items] | |||||
Share-based payment arrangements, option vesting period | 3 years | ||||
Share-based payment arrangements, option vesting period, required period before vesting begins | 90 days | ||||
Share-based payment arrangement, Options, Vested, Number of Shares | shares | 1,832,000 |
Note 14 - Share-based Payment_3
Note 14 - Share-based Payments - Options Outstanding (Details) | 12 Months Ended | ||
Dec. 31, 2018CAD ($)shares | Dec. 31, 2017CAD ($)shares | Dec. 31, 2016CAD ($)shares | |
Statement Line Items [Line Items] | |||
Balance, number of options | 3,999,000 | 2,045,835 | 3,602,501 |
Balance, weighted average exercise price | $ 0.21 | $ 0.18 | $ 0.33 |
Balance, weighted average remaining contract life | 2.77 | 0.86 | 1.35 |
Granted, number of options | 2,920,000 | 4,012,000 | 700,000 |
Granted, weighted average exercise price | $ 0.07 | $ 0.21 | $ 0.69 |
Granted, weighted average remaining contract life (in shares) | shares | 2.89 | 2.76 | 0.64 |
Expired, number of options | (25,000) | (2,049,085) | (957,500) |
Expired, weighted average exercise price | $ 0.23 | $ 0.18 | $ 0.81 |
Expired, weighted average remaining contract life (in shares) | shares | 0.6 | ||
Forfeited, number of options | (90,000) | (9,750) | (1,000,000) |
Forfeited, weighted average exercise price | $ 0.23 | $ 0.24 | $ 0.66 |
Forfeited, weighted average remaining contract life (in shares) | shares | 2.34 | 0.53 | |
Exercised, number of options | (299,166) | ||
Exercised, weighted average exercise price | $ 0.18 | ||
Exercised, weighted average remaining contract life (in shares) | shares | |||
Balance, number of options | 6,804,000 | 3,999,000 | 2,045,835 |
Balance, weighted average exercise price | $ 0.19 | $ 0.21 | $ 0.18 |
Balance, weighted average remaining contract life | 2.26 | 2.77 | 0.86 |
Options exercisable, number of options | 4,566,000 | 2,577,000 | 1,820,835 |
Options exercisable, weighted average exercise price | $ 0.19 | $ 0.21 | $ 0.19 |
Note 15 - Earnings (Loss) Per_3
Note 15 - Earnings (Loss) Per Share - Calculation of Basic and Diluted Income (Loss) Per Share (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Statement Line Items [Line Items] | |||
Weighted average number of common shares used as the denominator in calculating basic earnings per share (in shares) | 35,529,192 | 35,529,192 | 33,987,383 |
Adjustments for calculation of diluted earnings per share: | |||
Options (in shares) | 814,609 | ||
Warrants (in shares) | 149,701 | ||
Weighted average number of common shares and potential common shares used as the denominator in calculating diluted earnings per share (in shares) | 35,529,192 | 35,529,192 | 34,951,693 |
Basic earnings (loss) per share (in CAD per share) | $ 0 | $ (0.18) | $ 0 |
Diluted earnings (loss) per share (in CAD per share) | $ 0 | $ (0.18) | $ 0 |
Note 16 - Income Taxes (Details
Note 16 - Income Taxes (Details Textual) | Dec. 31, 2018CAD ($) |
Statement Line Items [Line Items] | |
Unused tax losses for which no deferred tax asset recognised | $ 25,312,000 |
Capital loss [member] | CANADA | |
Statement Line Items [Line Items] | |
Unused tax losses for which no deferred tax asset recognised | 1,334,000 |
Capital loss [member] | UNITED KINGDOM | |
Statement Line Items [Line Items] | |
Unused tax losses for which no deferred tax asset recognised | 4,662,000 |
Allowance for credit losses [member] | UNITED KINGDOM | |
Statement Line Items [Line Items] | |
Unused tax losses for which no deferred tax asset recognised | $ 2,345,000 |
Note 16 - Income Taxes - Provis
Note 16 - Income Taxes - Provision for Income Taxes (Details) - CAD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Statement Line Items [Line Items] | |||
Combined basic Canadian federal and provincial income tax rate | 26.50% | 26.50% | 26.50% |
Effective income tax taxes | $ (27,602) | $ (1,659,267) | $ 17,025 |
Increase (decrease) resulting from change in the deferred tax assets not recognized | 1,839,000 | 1,302,000 | 424,000 |
Withholding tax | 189,534 | 178,022 | 186,832 |
Non-deductible items | 46,369 | 676,242 | 62,601 |
Change in prior year estimates | (1,576,767) | (318,975) | (502,753) |
$ 189,534 | $ 178,022 | $ 187,705 |
Note 16 - Income Taxes - Tax Ef
Note 16 - Income Taxes - Tax Effect of Temporary Differences (Details) - CAD ($) | Dec. 31, 2018 | Dec. 31, 2017 |
Deferred tax assets: | ||
Loss carry forwards | $ 8,146,000 | $ 6,307,000 |
Deferred tax assets not recognized | (8,145,000) | (6,306,000) |
Deferred tax assets recognized | 1,000 | 1,000 |
Property and equipment | 1,000 | 1,000 |
Net deferred tax assets | ||
Unused tax losses [member] | ||
Deferred tax assets: | ||
Loss carry forwards | $ 8,146,000 | $ 6,307,000 |
Note 16 - Income Taxes - Non-ca
Note 16 - Income Taxes - Non-capital Losses Available for Carry Forward (Details) | Dec. 31, 2018CAD ($) |
Statement Line Items [Line Items] | |
Non-capital losses available for carry forward | $ 25,312,000 |
2026 [member] | |
Statement Line Items [Line Items] | |
Non-capital losses available for carry forward | 233,000 |
2027 [member] | |
Statement Line Items [Line Items] | |
Non-capital losses available for carry forward | 788,000 |
2028 [member] | |
Statement Line Items [Line Items] | |
Non-capital losses available for carry forward | 2,163,000 |
2029 [member] | |
Statement Line Items [Line Items] | |
Non-capital losses available for carry forward | 2,991,000 |
2030 [member] | |
Statement Line Items [Line Items] | |
Non-capital losses available for carry forward | 4,356,000 |
2031 [member] | |
Statement Line Items [Line Items] | |
Non-capital losses available for carry forward | 4,646,000 |
2032 [member] | |
Statement Line Items [Line Items] | |
Non-capital losses available for carry forward | 1,188,000 |
2033 [member] | |
Statement Line Items [Line Items] | |
Non-capital losses available for carry forward | 806,000 |
2034 [member] | |
Statement Line Items [Line Items] | |
Non-capital losses available for carry forward | 436,000 |
2035 [member] | |
Statement Line Items [Line Items] | |
Non-capital losses available for carry forward | 54,000 |
2036 [member] | |
Statement Line Items [Line Items] | |
Non-capital losses available for carry forward | 420,000 |
2037 [member] | |
Statement Line Items [Line Items] | |
Non-capital losses available for carry forward | 7,070,000 |
2038 [member] | |
Statement Line Items [Line Items] | |
Non-capital losses available for carry forward | $ 161,000 |
Note 17 - Government Grants (De
Note 17 - Government Grants (Details Textual) - CAD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Statement Line Items [Line Items] | |||
Government grants | $ 242,813 | $ 232,413 | $ 229,694 |
Current grants receivables | 0 | 22,556 | 21,847 |
Total revenue | $ 1,940,182 | 2,776,768 | 3,195,221 |
Development of comprehensive, interactive phonetic English learning solution project [member] | |||
Statement Line Items [Line Items] | |||
Royalty percentage | 2.50% | ||
Payments for royalties | $ 0 | 0 | 0 |
Total revenue | $ 0 | $ 0 | $ 0 |
Print-based English language learning segment [member] | |||
Statement Line Items [Line Items] | |||
Minimum threshold for the revenue of a period of three years for a grant liability to occur | 15.00% | 15.00% | 15.00% |
Total revenue | $ 1,688,571 | $ 1,738,800 |
Note 18 - Financial Instrumen_3
Note 18 - Financial Instruments (Details Textual) - CAD ($) | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Statement Line Items [Line Items] | ||||
Total cash and cash equivalents | $ 233,843 | $ 327,434 | $ 84,303 | $ 409,022 |
Current Trade and Grants Receivable | 913,458 | 970,467 | ||
Currency risk [member] | ||||
Statement Line Items [Line Items] | ||||
Possible effect of 10% change in exchange rate regarding the USD to the net income (loss) | 63,030 | 67,000 | ||
Liquidity risk [member] | ||||
Statement Line Items [Line Items] | ||||
Total cash and cash equivalents | 233,843 | 327,434 | ||
Current Trade and Grants Receivable | 913,458 | 970,467 | ||
Current liabilities | 743,410 | 980,318 | ||
Credit risk [member] | ||||
Statement Line Items [Line Items] | ||||
Current Trade and Grants Receivable | $ 913,458 | $ 970,467 |
Note 18 - Financial Instrumen_4
Note 18 - Financial Instruments - Denominated Monetary Assets and Liabilities (Details) - Currency risk [member] - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 |
Financial liabilities at amortised cost, category [member] | Trade and other payables [member] | ||
Statement Line Items [Line Items] | ||
Financial liabilities | $ 189,586 | $ 104,225 |
Financial liabilities at amortised cost, category [member] | Accrued liabilities [member] | ||
Statement Line Items [Line Items] | ||
Financial liabilities | 23,882 | |
Financial assets at fair value through profit or loss, category [member] | Cash and cash equivalents [member] | ||
Statement Line Items [Line Items] | ||
Financial assets | 14,741 | 122,319 |
Loans and receivables, category [member] | Trade receivables [member] | ||
Statement Line Items [Line Items] | ||
Financial assets | $ 660,704 | $ 518,999 |
Note 19 - Major Customer (Detai
Note 19 - Major Customer (Details Textual) - People’s Republic of China government agency [member] | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Statement Line Items [Line Items] | |||
Percentage of entity's revenue | 80.00% | 59.00% | 54.00% |
Percentage of entity's receivables | 89.00% | 84.00% | 52.00% |
Note 21 - Segmented Informati_3
Note 21 - Segmented Information (Details Textual) | 12 Months Ended |
Dec. 31, 2018 | |
Statement Line Items [Line Items] | |
Number of reportable segments | 2 |
Note 21 - Segmented Informati_4
Note 21 - Segmented Information - Segment Earnings (Details) - CAD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Statement Line Items [Line Items] | |||
Segmented assets | $ 1,302,004 | $ 1,534,072 | $ 7,176,192 |
Segmented liabilities | 743,410 | 980,318 | 731,158 |
Total revenue | 1,940,182 | 2,776,768 | 3,195,221 |
Segmented direct costs | 271,020 | 225,618 | 385,384 |
Segmented selling, general & administrative | 1,200,766 | 1,368,153 | 1,364,735 |
Segmented intangible amortization | 1,051,928 | 1,003,485 | |
Segmented other expense | 207,902 | 184,666 | 195,003 |
Segmented impairment | 2,087,700 | ||
Segmented profit (loss) | 71,879 | (5,646,377) | 246,614 |
Segmented intangible addition | 1,798,687 | ||
Segmented profit (loss) | (104,156) | (6,261,382) | 64,247 |
Foreign exchange gain (loss) | 38,351 | (189,783) | (146,599) |
Interest and other financial | (51,898) | (53,709) | (35,768) |
Share-based payments | (162,489) | (371,513) | |
Other comprehensive income (loss) | 32,202 | (1,410) | 60,173 |
Total Comprehensive Income (Loss) | (71,954) | (6,262,792) | 124,420 |
Online [member] | |||
Statement Line Items [Line Items] | |||
Total revenue | 206,955 | ||
Offline [member] | |||
Statement Line Items [Line Items] | |||
Total revenue | 8,012 | ||
Royalty [member] | |||
Statement Line Items [Line Items] | |||
Total revenue | 1,725,215 | ||
Online English language learning segment [member] | |||
Statement Line Items [Line Items] | |||
Segmented assets | 141,238 | 189,200 | 4,521,560 |
Segmented liabilities | 348,214 | 228,418 | 206,784 |
Total revenue | 1,088,197 | 1,456,421 | |
Segmented direct costs | 180,832 | 134,695 | 167,597 |
Segmented selling, general & administrative | 348,436 | 455,915 | 168,161 |
Segmented intangible amortization | 1,051,928 | 1,003,485 | |
Segmented other expense | 10,918 | 1,074 | 806 |
Segmented impairment | 2,087,700 | ||
Segmented profit (loss) | (475,131) | (6,148,195) | 116,372 |
Segmented intangible addition | 1,798,687 | ||
Segmented profit (loss) | (475,131) | (6,148,195) | 116,372 |
Online English language learning segment [member] | Online [member] | |||
Statement Line Items [Line Items] | |||
Total revenue | 206,955 | ||
Online English language learning segment [member] | Offline [member] | |||
Statement Line Items [Line Items] | |||
Total revenue | 8,012 | ||
Online English language learning segment [member] | Royalty [member] | |||
Statement Line Items [Line Items] | |||
Total revenue | 38,701 | ||
Print-based English language learning segment [member] | |||
Statement Line Items [Line Items] | |||
Segmented assets | 1,087,463 | 1,257,239 | 1,675,740 |
Segmented liabilities | 160,750 | 164,294 | 198,315 |
Total revenue | 1,688,571 | 1,738,800 | |
Segmented direct costs | 90,188 | 90,923 | 217,787 |
Segmented selling, general & administrative | 64,580 | 97,404 | 295,549 |
Segmented intangible amortization | |||
Segmented other expense | 196,079 | 182,461 | 192,658 |
Segmented impairment | |||
Segmented profit (loss) | 1,335,666 | 1,317,783 | 1,032,806 |
Segmented intangible addition | |||
Segmented profit (loss) | 1,335,666 | 1,317,783 | 1,032,806 |
Print-based English language learning segment [member] | Online [member] | |||
Statement Line Items [Line Items] | |||
Total revenue | |||
Print-based English language learning segment [member] | Offline [member] | |||
Statement Line Items [Line Items] | |||
Total revenue | |||
Print-based English language learning segment [member] | Royalty [member] | |||
Statement Line Items [Line Items] | |||
Total revenue | 1,686,514 | ||
Head office [member] | |||
Statement Line Items [Line Items] | |||
Segmented assets | 73,303 | 87,633 | 978,892 |
Segmented liabilities | 234,446 | 587,606 | 326,059 |
Total revenue | |||
Segmented direct costs | |||
Segmented selling, general & administrative | 787,750 | 814,834 | 901,025 |
Segmented intangible amortization | |||
Segmented other expense | 905 | 1,131 | 1,539 |
Segmented impairment | |||
Segmented profit (loss) | (788,655) | (815,965) | (902,564) |
Segmented intangible addition | |||
Segmented profit (loss) | (788,655) | $ (815,965) | $ (902,564) |
Head office [member] | Online [member] | |||
Statement Line Items [Line Items] | |||
Total revenue | |||
Head office [member] | Offline [member] | |||
Statement Line Items [Line Items] | |||
Total revenue | |||
Head office [member] | Royalty [member] | |||
Statement Line Items [Line Items] | |||
Total revenue |
Note 21 - Segmented Informati_5
Note 21 - Segmented Information - Geographical Information (Details) - CAD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Statement Line Items [Line Items] | |||
Revenue | $ 1,940,182 | $ 2,776,768 | $ 3,195,221 |
Identifiable non-current assets | 53,164 | 30,689 | 3,467,115 |
Latin America [member] | |||
Statement Line Items [Line Items] | |||
Revenue | 187,008 | 997,661 | 821,762 |
Country of domicile [member] | |||
Statement Line Items [Line Items] | |||
Identifiable non-current assets | 52,131 | 29,804 | 3,467,115 |
CHINA | |||
Statement Line Items [Line Items] | |||
Revenue | 1,702,249 | 1,712,079 | 2,252,170 |
Identifiable non-current assets | 1,033 | 885 | |
Other [member] | |||
Statement Line Items [Line Items] | |||
Revenue | $ 50,925 | $ 67,028 | $ 121,289 |
Note 22 - Commitments and Con_3
Note 22 - Commitments and Contingency - Future Minimum Lease Payments (Details) | Dec. 31, 2018CAD ($) |
Not later than one year [member] | |
Statement Line Items [Line Items] | |
Future minimum lease payments | $ 225,471 |
Later than one year and not later than two years [member] | |
Statement Line Items [Line Items] | |
Future minimum lease payments | 219,036 |
Later than two years and not later than three years [member] | |
Statement Line Items [Line Items] | |
Future minimum lease payments | $ 38,306 |
Note 23 - Supplemental Cash F_3
Note 23 - Supplemental Cash Flow Information - Schedule of Income Taxes and Interest Paid (Details) - CAD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Statement Line Items [Line Items] | |||
Income taxes and other taxes paid | $ 189,534 | $ 178,022 | $ 187,705 |
Interest paid | $ 51,898 | $ 41,650 | $ 25,103 |
Note 24 - Related Party Balan_2
Note 24 - Related Party Balances and Transactions (Details Textual) | 12 Months Ended | ||
Dec. 31, 2018CAD ($) | Dec. 31, 2017CAD ($) | Dec. 31, 2016CAD ($) | |
Statement Line Items [Line Items] | |||
Key management personnel compensation | $ 360,672 | $ 360,023 | $ 480,577 |
Number of share options granted in share-based payment arrangement | 2,920,000 | 4,012,000 | 700,000 |
Borrowings, interest rate | 12.00% | ||
Proceeds from borrowings, classified as financing activities | $ 420,000 | $ 1,460,000 | $ 150,000 |
Repayments of borrowings | 720,000 | 1,310,000 | 580,000 |
Two corporations under one related director [member] | Rent, administration, office charges and telecommunications [member] | |||
Statement Line Items [Line Items] | |||
Amounts receivable, related party transactions | 165,726 | 52,001 | 33,020 |
Key management personnel of entity or parent [member] | |||
Statement Line Items [Line Items] | |||
Amounts payable, related party transactions | $ 17,065 | $ 3,121 | $ 0 |
Number of share options granted in share-based payment arrangement | 0 | 508,000 | 0 |
Corporations controlled by directors and officers of the entity [member] | |||
Statement Line Items [Line Items] | |||
Amounts payable, related party transactions | $ 150,000 | $ 50,000 | |
Borrowings, interest rate | 12.00% | ||
Proceeds from borrowings, classified as financing activities | $ 420,000 | ||
Repayments of borrowings | 720,000 | ||
Interest income (expense) | (42,133) | (4,586) | (351) |
Weighted average fair value at measurement date, share options granted | $ 25,988 | $ 0 | $ 0 |