Document and Entity Information
Document and Entity Information | 9 Months Ended |
Sep. 30, 2020 | |
Document and Entity Information | |
Entity Registrant Name | ELECTRAMECCANICA VEHICLES CORP. |
Entity Central Index Key | 0001637736 |
Amendment Flag | false |
Document Fiscal Period Focus | Q3 |
Current Fiscal Year End Date | --12-31 |
Document Type | 6-K |
Document Period End Date | Sep. 30, 2020 |
Document Fiscal Year Focus | 2020 |
Condensed Unaudited Consolidate
Condensed Unaudited Consolidated Statements of Financial Position - CAD ($) | Sep. 30, 2020 | Dec. 31, 2019 | |
Current assets | |||
Cash and cash equivalents | $ 101,054,943 | $ 11,095,848 | |
Receivables | 254,493 | 440,930 | |
Prepaid expenses | 6,949,555 | 6,580,976 | |
Inventory | 1,376,408 | 750,151 | |
Current assets | 109,635,399 | 18,867,905 | |
Non-current assets | |||
Restricted cash | 186,570 | 184,314 | |
Plant and equipment | 11,672,818 | 9,990,542 | |
Net investment in sublease | 119,490 | ||
Goodwill and other intangible assets | 1,235,381 | 1,239,131 | |
TOTAL ASSETS | 122,849,658 | 30,281,892 | |
Current liabilities | |||
Trade payables and accrued liabilities | 2,533,284 | 2,128,226 | |
Customer deposits | 422,604 | 411,479 | |
Construction contract liability | 223,656 | 199,465 | |
Shareholder loan | 2,076 | ||
Deferred income tax | 4,250 | 42,855 | |
Current portion of lease liabilities | 660,287 | 604,886 | |
Total Current Liabilities | 3,844,081 | 3,388,987 | |
Non-current liabilities | |||
Derivative liability | [1] | 10,473,131 | 7,072,134 |
Lease liabilities | 683,379 | 858,790 | |
Deferred revenue | 151,809 | ||
TOTAL LIABILITIES | 15,152,400 | 11,319,911 | |
EQUITY | |||
Share capital | 178,274,996 | 66,574,255 | |
Deficit | (91,852,387) | (62,116,008) | |
Reserves | 21,274,649 | 14,503,734 | |
TOTAL EQUITY | 107,697,258 | 18,961,981 | |
TOTAL LIABILITIES AND EQUITY | $ 122,849,658 | $ 30,281,892 | |
[1] | Footnote: The warrant derivative liability is valued at fair value in accordance with International Financial Reporting Standards (“IFRS”). There are no circumstances in which the Company would be required to pay cash upon exercise or expiry of the warrants. See Note 10. |
Condensed Unaudited Consolida_2
Condensed Unaudited Consolidated Statements of Comprehensive Loss - CAD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Condensed Unaudited Consolidated Statements of Comprehensive Loss | ||||
Revenue | $ 327,285 | $ 200,068 | $ 460,774 | $ 461,334 |
Cost of revenue | 317,084 | 134,470 | 523,001 | 397,274 |
Gross profit / (loss) | 10,201 | 65,598 | (62,227) | 64,060 |
Operating expenses | ||||
Amortization | 592,057 | 268,932 | 1,037,244 | 798,912 |
General and administrative expenses | 2,457,862 | 2,323,858 | 6,815,629 | 5,828,196 |
Research and development expenses | 2,053,366 | 3,266,756 | 5,500,030 | 6,825,816 |
Sales and marketing expenses | 700,232 | 452,808 | 1,462,515 | 1,265,346 |
Stock-based compensation expense | 2,980,352 | 1,597,779 | 6,930,434 | 4,148,806 |
Share-based payment expense | (39,426) | 206,516 | ||
Operating expenses | 8,783,869 | 7,870,707 | 21,745,852 | 19,073,592 |
Operating loss | (8,773,668) | (7,805,109) | (21,808,079) | (19,009,532) |
Other items | ||||
Interest income | (93,024) | (152,561) | (145,687) | (94,478) |
Changes in fair value of derivative liability | 4,846,725 | (2,107,474) | 7,758,928 | 3,412,917 |
Lease modification loss of net investment in sublease | (32,486) | (32,486) | ||
Other Income | (27,127) | (17,711) | (546,322) | (71,639) |
Foreign exchange (gain)/loss | 1,372,059 | (186,848) | 868,028 | 479,721 |
Loss before taxes | (14,904,787) | (5,340,515) | (29,775,512) | (22,736,053) |
Current income tax expense/(recovery) | (1,604) | (528) | 2,140 | |
Deferred income tax recovery | (11,330) | (6,894) | (38,605) | (56,069) |
Net loss | (14,891,853) | (5,333,621) | (29,736,379) | (22,682,124) |
Other comprehensive income/(loss) | 87,781 | (14,257) | (39,672) | 10,330 |
Comprehensive Loss | $ (14,804,072) | $ (5,347,878) | $ (29,776,051) | $ (22,671,794) |
Loss per share - basic and fully diluted | $ (0.21) | $ (0.14) | $ (0.58) | $ (0.64) |
Weighted average number of shares outstanding - basic and fully diluted | 69,948,843 | 36,957,731 | 51,080,739 | 35,651,311 |
Condensed Unaudited Consolida_3
Condensed Unaudited Consolidated Statements of Changes in Equity - CAD ($) | Share capital | Share-based payment reserve | Foreign Currency Translation Reserve | Deficit | Total |
Beginning balance at Dec. 31, 2018 | $ 46,622,299 | $ 7,667,591 | $ (10,005) | $ (31,373,697) | $ 22,906,188 |
Beginning balance, shares at Dec. 31, 2018 | 32,332,343 | ||||
Shares issued for cash | $ 14,725,221 | 14,725,221 | |||
Shares issued for cash (in shares) | 3,333,334 | ||||
Shares issued pursuant to exercise of warrants | $ 4,657,266 | 4,657,266 | |||
Shares issued pursuant to exercise of warrants (in shares) | 1,046,300 | ||||
Shares issued for services | $ 201,077 | 201,077 | |||
Shares issued for services (in shares) | 93,020 | ||||
Stock-based compensation | 1,999,992 | 1,999,992 | |||
Comprehensive gain (loss) for the quarter | 2,683 | (20,629,865) | (20,627,182) | ||
Ending balance at Mar. 31, 2019 | $ 66,205,863 | 9,667,583 | (7,322) | (52,003,562) | 23,862,562 |
Ending balance, shares at Mar. 31, 2019 | 36,804,997 | ||||
Beginning balance at Dec. 31, 2018 | $ 46,622,299 | 7,667,591 | (10,005) | (31,373,697) | 22,906,188 |
Beginning balance, shares at Dec. 31, 2018 | 32,332,343 | ||||
Comprehensive gain (loss) for the quarter | (22,682,124) | ||||
Comprehensive gain (loss) for the quarter | (22,671,794) | ||||
Ending balance at Sep. 30, 2019 | $ 66,504,106 | 11,803,866 | 325 | (54,055,821) | 24,252,476 |
Ending balance, shares at Sep. 30, 2019 | 36,952,820 | ||||
Beginning balance at Mar. 31, 2019 | $ 66,205,863 | 9,667,583 | (7,322) | (52,003,562) | 23,862,562 |
Beginning balance, shares at Mar. 31, 2019 | 36,804,997 | ||||
Shares issued cost | $ (10,425) | (10,425) | |||
Shares issued pursuant to exercise of warrants | $ 145,153 | 145,153 | |||
Shares issued pursuant to exercise of warrants (in shares) | 70,023 | ||||
Shares issued for services | $ 171,101 | 171,101 | |||
Shares issued for services (in shares) | 41,030 | ||||
Shares issued pursuant to exercise of options | $ 47,539 | (12,531) | 35,008 | ||
Shares issued pursuant to exercise of options (in shares) | 43,760 | ||||
Stock-based compensation | 551,035 | 551,035 | |||
Comprehensive gain (loss) for the quarter | 21,904 | 3,281,362 | 3,303,266 | ||
Ending balance at Jun. 30, 2019 | $ 66,559,231 | 10,206,087 | 14,582 | (48,722,200) | 28,057,700 |
Ending balance, shares at Jun. 30, 2019 | 36,959,810 | ||||
Shares issued cost | $ (15,699) | (15,699) | |||
Shares issued for services | $ 10,766 | 10,766 | |||
Shares issued for services (in shares) | 3,010 | ||||
Shares cancelled | $ (50,192) | (50,192) | |||
Shares cancelled (in shares) | (10,000) | ||||
Stock-based compensation | 1,597,779 | 1,597,779 | |||
Comprehensive gain (loss) for the quarter | (5,333,621) | ||||
Comprehensive gain (loss) for the quarter | (14,257) | (5,333,621) | (5,347,878) | ||
Ending balance at Sep. 30, 2019 | $ 66,504,106 | 11,803,866 | 325 | (54,055,821) | 24,252,476 |
Ending balance, shares at Sep. 30, 2019 | 36,952,820 | ||||
Beginning balance at Dec. 31, 2019 | $ 66,574,255 | 14,447,529 | 56,205 | (62,116,008) | 18,961,981 |
Beginning balance, shares at Dec. 31, 2019 | 37,049,374 | ||||
Shares issued for cash | $ 11,158 | 11,158 | |||
Shares issued for cash (in shares) | 7,500 | ||||
Shares issued cost | $ (73,330) | (73,330) | |||
Stock-based compensation | 2,534,558 | 2,534,558 | |||
Comprehensive gain (loss) for the quarter | (259,121) | (1,908,181) | (2,167,302) | ||
Ending balance at Mar. 31, 2020 | $ 66,512,083 | 16,982,087 | (202,916) | (64,024,189) | 19,267,065 |
Ending balance, shares at Mar. 31, 2020 | 37,056,874 | ||||
Beginning balance at Dec. 31, 2019 | $ 66,574,255 | 14,447,529 | 56,205 | (62,116,008) | 18,961,981 |
Beginning balance, shares at Dec. 31, 2019 | 37,049,374 | ||||
Comprehensive gain (loss) for the quarter | (29,736,379) | ||||
Comprehensive gain (loss) for the quarter | (29,776,051) | ||||
Ending balance at Sep. 30, 2020 | $ 178,274,996 | 21,258,116 | 16,533 | (91,852,387) | 107,697,258 |
Ending balance, shares at Sep. 30, 2020 | 77,789,748 | ||||
Beginning balance at Mar. 31, 2020 | $ 66,512,083 | 16,982,087 | (202,916) | (64,024,189) | 19,267,065 |
Beginning balance, shares at Mar. 31, 2020 | 37,056,874 | ||||
Shares issued for cash | $ 52,420,971 | 52,420,971 | |||
Shares issued for cash (in shares) | 25,913,365 | ||||
Shares issued cost | $ (2,890,382) | (2,890,382) | |||
Shares issued pursuant to exercise of warrants | $ 150,000 | 150,000 | |||
Shares issued pursuant to exercise of warrants (in shares) | 187,500 | ||||
Shares issued pursuant to exercise of options | $ 13,004 | (5,504) | 7,500 | ||
Shares issued pursuant to exercise of options (in shares) | 25,000 | ||||
Stock-based compensation | 1,415,525 | 1,415,525 | |||
Comprehensive gain (loss) for the quarter | 131,668 | (12,936,345) | (12,804,677) | ||
Ending balance at Jun. 30, 2020 | $ 116,205,676 | 18,392,108 | (71,248) | (76,960,534) | 57,566,002 |
Ending balance, shares at Jun. 30, 2020 | 63,182,739 | ||||
Shares issued for cash | $ 54,566,876 | 54,566,876 | |||
Shares issued for cash (in shares) | 13,058,071 | ||||
Shares issued cost | $ (1,728,403) | (1,728,403) | |||
Shares issued pursuant to exercise of warrants | $ 9,103,980 | (76,120) | 9,027,860 | ||
Shares issued pursuant to exercise of warrants (in shares) | 1,413,767 | ||||
Shares issued pursuant to exercise of options | $ 126,867 | (38,224) | 88,643 | ||
Shares issued pursuant to exercise of options (in shares) | 135,171 | ||||
Stock-based compensation | 2,980,352 | 2,980,352 | |||
Comprehensive gain (loss) for the quarter | (14,891,853) | ||||
Comprehensive gain (loss) for the quarter | 87,781 | (14,891,853) | (14,804,072) | ||
Ending balance at Sep. 30, 2020 | $ 178,274,996 | $ 21,258,116 | $ 16,533 | $ (91,852,387) | $ 107,697,258 |
Ending balance, shares at Sep. 30, 2020 | 77,789,748 |
Condensed Unaudited Consolida_4
Condensed Unaudited Consolidated Statements of Cash Flows - CAD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Operating activities | ||||
Loss for the quarter | $ (14,891,853) | $ (5,333,621) | $ (29,736,379) | $ (22,682,124) |
Adjustments for: | ||||
Amortization | 592,057 | 268,932 | 1,037,244 | 798,912 |
Stock-based compensation expense | 2,980,352 | 1,597,779 | 6,930,434 | 4,148,806 |
Share-based payment expense | (39,426) | 206,516 | ||
Interest income | (93,024) | (152,561) | (145,687) | (94,478) |
Lease modification loss | 32,486 | 32,486 | ||
Changes in fair value of derivative liability | 4,846,725 | (2,107,474) | 7,758,928 | 3,412,917 |
Deferred income tax recovery | (11,330) | (6,894) | (38,605) | (56,069) |
Changes in non-cash working capital items: | ||||
Receivables | 71,042 | 1,448,744 | 221,915 | 932,425 |
Prepaid expenses | (529,435) | 851,321 | (277,225) | (3,959,468) |
Inventory | (66,750) | 198,103 | (626,257) | (444,079) |
Trade payables and accrued liabilities | (124,733) | 391,756 | (1,403,801) | (93,305) |
Customer deposits and construction contract liability | (46,637) | 41,522 | 35,316 | 97,256 |
Net cash flows used in operating activities | (7,241,100) | (2,841,819) | (16,211,631) | (17,732,691) |
Investing activities | ||||
Investments in restricted cash | 1,893 | (589) | (2,256) | 1,042 |
Expenditures on plant and equipment | (476,396) | (2,147,066) | (816,280) | (3,415,881) |
Acquisition of intangible assets | (13,050) | (5,008) | ||
Net cash flows used in investing activities | (474,503) | (2,160,705) | (818,536) | (3,419,847) |
Financing activities | ||||
Interest received | 13,361 | 58,605 | 207,227 | 70,692 |
Interest from net investment in sublease | 1,461 | 10,456 | ||
Interest paid | (8) | (258) | (403) | (408) |
Interest on lease payments | (24,923) | (36,488) | (81,274) | (104,673) |
Repayment of shareholder loans | (1,038) | (2,076) | (3,115) | |
Repayment of leases | (168,782) | (151,462) | (461,454) | (451,109) |
Payment received for net investment in sublease | 11,860 | 71,324 | ||
Proceeds on issuance of common shares - net of issue costs | 52,838,472 | (15,699) | 102,369,062 | 14,699,097 |
Proceeds from issuance of common shares for options exercised | 88,643 | 96,143 | 35,008 | |
Proceeds from issuance of common shares for warrants exercised | 4,669,929 | 4,819,929 | 4,195,286 | |
Net cash flows from /(used in) financing activities | 57,430,013 | (146,340) | 107,028,934 | 18,440,778 |
Increase/(decrease) in cash and cash equivalents | 49,714,410 | (5,148,864) | 89,998,767 | (2,711,760) |
Effect of exchange rate changes on cash | 87,781 | (14,257) | (39,672) | 10,330 |
Cash and cash equivalents, beginning | 51,252,752 | 21,388,624 | 11,095,848 | 18,926,933 |
Cash and cash equivalents, ending | $ 101,054,943 | $ 16,225,503 | $ 101,054,943 | $ 16,225,503 |
Nature and continuance of opera
Nature and continuance of operations | 9 Months Ended |
Sep. 30, 2020 | |
Nature and continuance of operations | |
Nature and continuance of operations | 1. ElectraMeccanica Vehicles Corp (the “Company”) was incorporated on February 16, 2015, under the laws of the province of British Columbia, Canada, and its principal activity is the development and manufacturing of electric vehicles (“EV”s). The Company acquired InterMeccanica International Inc. (“InterMeccanica”) on October 18, 2017, and whose principal activity is the development and manufacturing of high-end custom-built vehicles. On January 22, 2018, the Company incorporated a wholly owned subsidiary, EMV Automotive USA Inc., in Nevada, USA. On October 15, 2019, the Company incorporated a wholly owned subsidiary, EMV Automotive Technology (Chongqing) Inc., in Chongqing, China. On November 22, 2019, the Company incorporated SOLO EV, LLC, a wholly owned subsidiary of EMV Automotive USA Inc., in Michigan, USA. The head office and principal address of the Company are located at 102 East 1 st Avenue, Vancouver, British Columbia, Canada, V5T 1A4. These consolidated financial statements have been prepared on the assumption that the Company will continue as a going concern, meaning it will continue in operation for the foreseeable future and will be able to realize assets and discharge liabilities in the ordinary course of operations. The Company’s principal activity is the development and manufacture of EVs. As at September 30, 2020, the Company has commenced commercial production of the SOLO single seat EV and is not able to finance day-to-day activities through operations. The Company’s continuation as a going concern is dependent upon the successful results from its electric vehicle manufacturing activities and its ability to attain profitable operations and generate funds there from and/or raise equity capital or borrowings sufficient to meet current and future obligations. The Company has begun production but has not had commercial delivery of its first electric vehicle. As at September 30, 2020, there have been no revenues from the sale of electric vehicles as any amounts received from the sale of pre-production electric vehicles were netted off against research and development costs as cost recovery. It is anticipated that significant additional funding will be required. These factors indicate the existence of a material uncertainty that cast substantial doubt about the Company’s ability to continue as a going concern. Management primarily intends to finance its operations over the next 12 months through sales of the SOLO, private placements and/or public offerings of equity capital. Should the Company be unable to continue as a going concern, the net realizable value of its assets may be materially less than the amounts on its consolidated statement of financial position. |
Significant accounting policies
Significant accounting policies and basis of preparation | 9 Months Ended |
Sep. 30, 2020 | |
Significant accounting policies and basis of preparation | |
Significant accounting policies and basis of preparation | 2. The consolidated financial statements were authorized for issue on November 10, 2020 by the directors of the Company. Statement of compliance with International Financial Reporting Standards These interim condensed consolidated financial statements have been prepared in accordance with International Financial Reporting Standards (“IFRS”), as issued by the International Accounting Standards Board (“IASB”). These interim condensed consolidated financial statements are prepared in accordance with International Accounting Standards (“IAS”) 34 – Interim Financial Reporting on a basis consistent with those followed in our most recent annual consolidated financial statements for the year ended December 31, 2019. These interim condensed consolidated financial statements do not include all of the information required for full annual financial statements and should be read in conjunction with the Company’s audited consolidated financial statements for the year ended December 31, 2019. Basis of preparation The consolidated financial statements of the Company have been prepared on an accrual basis and are based on historical costs except for derivative liabilities which are measured at fair value. The Company’s functional and presentation currency is Canadian dollars. Consolidation The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries, EMV Automotive USA Inc., from the date of incorporation of January 22, 2018, InterMeccanica, from the date of its acquisition on October 18, 2017, EMV Automotive Technology (Chongqing) Inc., from the date of its incorporation on October 15, 2019, and SOLO EV, LLC, from the date of its incorporation on November 22, 2019. Inter-company balances and transactions, including unrealized income and expenses arising from inter-company transactions, are eliminated on consolidation. Significant estimates and assumptions The preparation of financial statements in accordance with IFRS requires the Company to make estimates and assumptions concerning the future. The Company’s management reviews these estimates and underlying assumptions on an ongoing basis, based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. Revisions to estimates are adjusted for prospectively in the period in which the estimates are revised. Estimates and assumptions where there is significant risk of material adjustments to assets and liabilities in future accounting periods include the estimated recoverable amount of goodwill, intangible assets and other long-lived assets, the useful lives of plant and equipment, fair value measurements for financial instruments and share-based payments, and the recoverability and measurement of deferred tax assets. The Covid-19 outbreak brings significant uncertainty as to the potential impact on our operations, supply chains for parts and sales channels for our products, and on the global economy as a whole. It is currently not possible to predict how long the pandemic will last or the time that it will take for economic activity to return to prior levels. Therefore, the Company has not changed any estimates and assumptions in the preparation of the financial statements. Significant judgments The preparation of financial statements in accordance with IFRS requires the Company to make judgments, apart from those involving estimates, in applying accounting policies. The most significant areas that require judgment in the Company has consolidated financial statements include: - the assessment of the Company’s ability to continue as a going concern and whether there are events or conditions that may give rise to significant uncertainty; - the classification of financial instruments; and - the calculation of income taxes require judgement in interpreting tax rules and regulations. Change in accounting policies Leases As a lessor When the Company acts as an intermediate lessor, it determines at lease inception whether each lease is a finance lease or an operating lease and accounts for its interest in the head lease and the sublease separately. It assesses the lease classification of a sublease with reference to the right-of-use asset arising from the head lease, not with reference to the underlying asset. If a head lease is a short-term lease to which the Company applies the exemption described above, then it classifies the sublease as an operating lease. Deferred revenue Deferred revenue consists primarily of advance payments that may be made to the Company by its manufacturing partner in China, Chongqing Zongshen Automobile Co., Ltd. (“Zongshen”), for royalties to be derived from the sales of SOLOs by Zongshen in China when any such sales, if any, are made in accordance with the terms of our manufacturing agreement. The deferred revenue from any such royalties will be recognized in profit or loss on a periodic basis as and when the Zongshen builds and sells the permitted number of SOLOs in China under the manufacturing agreement. Government grants A government grant is recognized if there is reasonable assurance that it will be received and that the Company will comply with the conditions associated with the grant. If the conditions are met, the Company recognizes the grant in profit or loss on a systematic basis in line with its recognition of the expenses that the grant is intended to compensate. For grants related to income, a Company can elect to either offset the grant against the related expenditure or include it in other income. Government assistance received by the Company during the period have been accounted for as government grants related to income and have been included in other income. Restricted Stock Units Restricted Stock Units (“RSU”s) are stock-based awards that may be granted by the Company to certain eligible participants pursuant to its current Stock Incentive Plan (the “Plan”) which was ratified by Company shareholders on July 9, 2020.. RSUs are accounted for as equity-settled share based payment transactions as the obligations under an RSU will be settled through the issuance of common shares. The Company measures the cost of equity-settled share-based transactions by reference to the fair value of the equity instruments at the date at which they are granted and is recorded in the statement of comprehensive loss over the vesting period. Deferred Stock Units Deferred Stock Units (“DSU”s) are stock-based awards that may be granted by the Company to certain eligible participants pursuant to its Plan. DSUs are accounted for as equity-settled share based payment transactions as the terms of a DSU provide the Company with the choice of whether to settle in cash or by issuing equity instruments. The Company measures the cost of equity-settled share-based transactions by reference to the fair value of the equity instruments at the date at which they are granted and is recorded in the statement of comprehensive loss in the period they are granted (immediate vesting) |
Cash and cash equivalents
Cash and cash equivalents | 9 Months Ended |
Sep. 30, 2020 | |
Cash and cash equivalents | |
Cash and cash equivalents | 3. For the purposes of the cash flow statement, cash and cash equivalents comprise the following balances with original term to maturity of 90 days or less: September 30, December 31, 2020 2019 Cash $ 18,020,534 $ 2,670,877 Cash equivalent 83,034,409 8,424,971 $ 101,054,943 $ 11,095,848 |
Receivables
Receivables | 9 Months Ended |
Sep. 30, 2020 | |
Receivables | |
Receivables | 4. September 30, December 31, 2020 2019 Trade receivable $ 6,286 $ 14,986 GST receivable 69,093 47,428 Scientific research and experimental development tax credits receivable — 249,111 Other receivables 179,114 129,405 $ 254,493 $ 440,930 |
Plant and equipment
Plant and equipment | 9 Months Ended |
Sep. 30, 2020 | |
Plant and equipment | |
Plant and equipment | 5. Plant and equipment Computer Furniture hardware Production and and Leasehold Right-of- tooling and equipment software Vehicles Improvements use assets molds Total Cost: December 31, 2018 494,487 133,403 388,049 384,341 — 4,549,948 5,950,228 Additions 73,691 139,863 — 129,327 — 3,310,971 3,653,852 Adoption of IFRS 16 — — — — 2,061,469 — 2,061,469 Disposals — (2,150) — — — — (2,150) December 31, 2019 568,178 271,116 388,049 513,668 2,061,469 7,860,919 11,663,399 Additions 21,003 223,063 73,791 64,701 364,575 2,218,032 2,965,165 Disposals — — (13,884) (36,110) — — (49,994) Lease termination and derecognition 1,2 — — — — (463,879) — (463,879) Foreign exchange difference 2,573 124 — 7,594 (46,124) — (35,833) September 30, 2020 591,754 494,303 447,956 549,853 1,916,041 10,078,951 14,078,858 Amortization: December 31, 2018 230,798 65,689 215,251 114,724 — — 626,462 Additions 77,975 65,600 117,326 121,951 664,797 — 1,047,649 Disposals — (1,254) — — — — (1,254) December 31, 2019 308,773 130,035 332,577 236,675 664,797 — 1,672,857 Additions 64,331 78,431 46,123 108,502 388,437 331,261 1,017,085 Disposals — — (9,659) (29,430) — — (39,089) Lease termination and derecognition 1,2 — — — — (260,443) — (260,443) Foreign exchange difference 472 16 — 2,913 12,229 — 15,630 September 30, 2020 373,576 208,482 369,041 318,660 805,020 331,261 2,406,040 Net book value: At December 31, 2019 259,405 141,081 55,472 276,993 1,396,672 7,860,919 9,990,542 September 30, 2020 218,178 285,821 78,915 231,193 1,111,021 9,747,690 11,672,818 1 The Company entered into a sublease agreement for its office space in Los Angeles, USA, with effect from February 1, 2020. As a result of the sublease, the Company derecognized the right-of-use asset relating to the head lease with cost of $319,365 and accumulated amortization of $161,565 (see Note 6 for further information on the net investment in sublease). 2 The Company terminated one of its warehouse leases on January 31, 2020. As a result of the termination, the Company derecognized the right-of-use asset of the warehouse with cost of $144,514 and accumulated amortization of $98,878 (see Note 9 for further information on the termination of the lease) On September 18, 2017, the Company entered into a manufacturing agreement with Chongqing Zongshen Automobile Co., Ltd. (“Zongshen”). Under the agreement, the Company agrees to reimburse Zongshen for the cost of prototype tooling and molds estimated to be CNY ¥9.5 million ($1.8 million), which was payable on or before March 18, 2018, subject to a 10% holdback, and mass production tooling and molds estimated to be CNY ¥29 million ($5.5 million), which shall be payable 50% when Zongshen commences manufacturing the tooling and molds, 40% when Zongshen completes manufacturing the tooling and molds, and 10% upon delivery to the Company of the first production vehicle. As at September 30, 2020, the Company has commenced commercial production and delivered the first production vehicle. Therefore, the Company has paid 100% of the prototype tooling and molds with actual cost of CNY ¥10.1 million ($2.1 million) and 79% of the mass production tooling and molds with actual cost of CNY ¥40 million ($8.0 million). The unpaid amount of mass production tooling and molds is included in accrued liabilities as at September 30, 2020. As assessed by the Company, the prototype tooling and molds can be adapted for use in mass production. The prototype and mass production tooling and molds are estimated to be used for 3 years to produce the Generation 3 SOLO EVs. The existing production tooling and molds will be depreciated on a straight line basis over a 3 year period as the assets were custom built for the production of the Generation 3 SOLO EVs and will be retired at the end of the production run. The Company estimates that the residual value of the assets will be minimal at the end of the 3 year period. During the three and nine months ended September 30, 2020, $331,261 ($Nil - three and nine months ended September 30, 2019) was charged to amortization expenses. No amounts were allocated to inventory or charged to cost of goods sold during the period as the Generation 3 SOLO EVs completed as at September 30, 2020 are intended to be used as marketing vehicles for customers to test drive. The Company doesn't intend to sell these marketing vehicles to customers in future periods. On October 16, 2017, the then CEO of the Company (“Pledgor”) entered into a Share Pledge Agreement (“Share Pledge”) to guarantee the payment by the Company for the cost of the prototype tooling and molds estimated to be CNY ¥9.5 million ($1.8 million) to Zongshen through the pledge of 400,000 common shares of the Company. The Company approved its obligations under the Share Pledge and had agreed to reimburse the Pledgor on a one for one basis for any pledged shares realized by Zongshen. As at September 30, 2020, the Company has paid 100% of the cost of the prototype tooling and molds and, accordingly, the Share Pledge has been terminated. |
Net investment in sublease
Net investment in sublease | 9 Months Ended |
Sep. 30, 2020 | |
Net investment in sublease | |
Net investment in sublease | 6. The Company entered into an agreement to sublease its office space in Los Angeles, USA, with effect from February 1, 2020. The Company has classified the sublease as a finance lease as the term of the sublease is for the major part of the economic life of the right-of-use asset arising from the head lease. At the commencement date of the sublease, the Company derecognized the right-of-use asset relating to the head lease that it transferred to the sub-lessee and recognized the net investment in the sub-lease. The term of the sublease expires on August 21, 2021. During the period ended September 30, 2020, the Company provided rent relief a sub-lessee from August to December 2020. Accordingly, the Company has recognized $32,486 of lease modification loss in relation to the net investment in sublease. As at September 30, 2020, the contractual undiscounted cash flows related to sublease were as follows: Future Present value minimum of minimum lease lease payments Interest payments receivable income receivable Less than one year $ 126,213 $ 6,723 $ 119,490 Between one and five years — — — Net investment in sublease $ 126,213 $ 6,723 $ 119,490 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 9 Months Ended |
Sep. 30, 2020 | |
Goodwill and Intangible Assets | |
Goodwill and Intangible Assets | 7. September 30, December 31, 2020 2019 Identifiable intangibles on acquisition of InterMeccanica $ 520,317 $ 524,067 Goodwill on acquisition of InterMeccanica 699,844 699,844 Other intangibles 15,220 15,220 $ 1,235,381 $ 1,239,131 |
Trade payables and accrued liab
Trade payables and accrued liabilities | 9 Months Ended |
Sep. 30, 2020 | |
Trade payables and accrued liabilities | |
Trade payables and accrued liabilities | 8. September 30, December 31, 2020 2019 Trade payables $ 499,925 $ 693,502 Due to related parties (Note 18) 398 275,512 Accrued liabilities 2,032,961 1,159,212 $ 2,533,284 $ 2,128,226 |
Lease liabilities
Lease liabilities | 9 Months Ended |
Sep. 30, 2020 | |
Lease liabilities. | |
Lease liabilities | 9. Lease obligations relate to the Company’s rent of office space, warehouse spaces and kiosk locations to promote vehicle sales. The term of the lease related to office space expires on November 1, 2020, and the term of leases related to warehouse spaces expire on August 31, 2021 and August 1, 2022, respectively, with the Company holding an option to renew one of the warehouse leases for a further five years. The Company entered into two lease agreements in 2020 for the lease of kiosk locations in Los Angeles which expire on November 30, 2021 and September 30, 2023, respectively. The Company terminated one of its warehouse leases on January 31, 2020 without penalty for termination and derecognized the lease liability and right-of-use asset of $47,238 and $45,636, respectively, on the effective date of termination. The Company incurred $91,043 and $140,035 of lease expenses for the three and nine months ended September 30, 2020 ($11,777 and $12,620 for the three and nine months ended September 30, 2019, respectively), for short-term leases and low-value leases which are not included in the measurement of lease liabilities. The following tables reconciles the change in the lease liabilities and discloses a maturity analysis of the lease liabilities for the nine months ended September 30, 2020: Balance as at January 1, 2020 $ 1,463,676 Lease addition 369,808 Lease termination (47,239) Accretion of lease liability 81,275 Repayment of principal and interest (523,854) Balance as at September 30, 2020 $ 1,343,666 Present value of Future minimum minimum lease lease payments Interest payments Less than one year $ 744,541 $ 84,254 $ 660,287 Between one and five years 617,447 117,534 499,913 More than five years 196,044 12,578 183,466 $ 1,558,032 $ 214,366 $ 1,343,666 Current portion of lease liabilities 660,287 Non-current portion of lease liabilities $ 683,379 |
Derivative liability
Derivative liability | 9 Months Ended |
Sep. 30, 2020 | |
Derivative liability | |
Derivative liability | 10. The exercise price of certain of our warrants is denominated in US dollars; however, the functional currency of the Company is the Canadian dollar. Consequently, the value of the proceeds on exercise is not fixed and will vary based on foreign exchange rate movements. The warrants when issued other than as compensation for goods and services are therefore a derivative for accounting purposes and are required to be recognized as a derivative liability and measured at fair value at each reporting period. Any changes in fair value from period to period are recorded as non-cash gain or loss in the consolidated statements of comprehensive loss. Upon exercise, the holders will pay the Company the respective exercise price for each warrant exercised in exchange for one common share of the Company and the fair value at the date of exercise and the associated non-cash liability will be reclassified to share capital. The non-cash liability associated with any warrants that expire unexercised will be recorded as a gain in the consolidated statements of comprehensive loss. There are no circumstances in which the Company would be required to pay any cash upon exercise or expiry of the warrants (See Note 11 for further information on warrants issued and outstanding). A reconciliation of the changes in fair values of the derivative liability for the nine months ended September 30, 2020 and the year ended December 31, 2019 is below: September 30, December 31, 2020 2019 Balance, beginning $ 7,072,134 $ 4,752,875 Warrants issued — — Warrants exercised (4,357,931) (607,133) Changes in fair value of derivative liabilities 7,758,928 2,926,392 Balance, ending $ 10,473,131 $ 7,072,134 The fair value of the transferrable warrants was calculated using the warrant price of USD $0.50 at issuance and USD $1.20 at September 30, 2020 as quoted on the NASDAQ exchange. |
Share capital
Share capital | 9 Months Ended |
Sep. 30, 2020 | |
Share capital | |
Share capital | 11. Authorized share capital Unlimited number of common shares without par value. At September 30, 2020, the Company had 77,789,748 issued and outstanding common shares (December 31, 2019 – 37,049,374). On March 27, 2020, the Company contracted with Stifel, Nicolaus & Company, Incorporated and Roth Capital Partners, LLC (each, an “Agent”, and collectively, the “Agents”) to sell common shares of the Company (the “Shares”) having an aggregate offering price of up to US$30,000,000 through the Agents (the “Sales Agreement). On July 13, 2020, the Company and the Agents amended the Sales Agreement to increase the aggregate offering price up to USD $59,500,000. In accordance with the terms of the Sales Agreement, the Company may offer and sell Shares from time to time through the Agent selected by the Company (the “Designated Agent”), acting as sales agent or, with consent of the Company, as principal. The shares may be offered and sold by any method permitted by law deemed to be an “at the market” (“ATM”) offering as defined in Rule 415 promulgated under the Securities Act, including sales made directly on or through the Nasdaq Capital Market (“Nasdaq”) or on any other existing trading market for the Shares, and, if expressly authorized by the Company, in negotiated transactions. From March 30, 2020 to September 24, 2020, the Company issued 28,978,936 common shares for the ATM offering under the Sales Agreement for gross proceeds of $79,824,390 (US$59,499,999). Share issue costs related to the ATM offering were $2,857,829. On June 10, 2020, the Company entered into definitive agreements with institutional investors to sell an aggregate of 10,000,000 common shares of the Company at a price of USD $2.00 per share for gross proceeds of USD $20,000,000 (the "Offering"). The Offering was priced "at market" under the rules of Nasdaq. The Offering was closed on June 12, 2020. The Company received gross proceeds of $27,174,615 with share issue costs of $1,834,286 (USD $1,350,000). On June 16, 2020, the Company issued 187,500 shares at a price of $0.80 per share for gross proceeds of $150,000 for warrants exercised by certain investors. On June 25, 2020, the Company issued 25,000 shares at a price of $0.30 per share for gross proceeds of $7,500 for stock options exercised by certain Plan participants. From July 8 to August 13, 2020, the Company issued 1,274,000 shares at a price of USD $2.56 per share for gross proceeds of $4,427,429 (USD $3,261,440) pursuant to the exercise of warrants by certain investors. These warrants were granted to investors through a concurrent offering of 4,250,000 common shares on November 9, 2018. On July 7, 2020, the Company issued 28,517 shares at a price of USD $3.20 per share for no consideration in relation to 75,315 warrants exercised by a placement agent granted under a Placement Agent Agreement on November 9, 2018. From July 9 to September 29, 2020, the Company issued 111,250 shares at prices ranging from of $2.00 to $4.00 per share for gross proceeds of $242,500 for warrants exercised by investors. From July 8 to July 27, 2020, the Company issued 135,171 shares at prices ranging from of $0.30 to $2.00 per share for gross proceeds of $88,644 for options exercised by certain Plan participants. Basic and fully diluted loss per share The calculation of basic and fully diluted loss per share for the nine months ended September 30, 2020 was based on the net loss attributable to common shareholders of $29,736,379 (September 30, 2019 – $22,682,124) and the weighted average number of common shares outstanding of 51,080,739 (September 30, 2019 – 35,651,311). Fully diluted loss per share did not include the effect of stock options and warrants as the effect would be anti-dilutive. Stock options The Company adopted a Stock Incentive Plan (the Plan) on July 9, 2020, which provides that the Board of Directors of the Company may from time to time, in its discretion, grant to directors, officers, employees and consultants to the Company non-transferable stock options to purchase common shares, provided that the number of common shares reserved for issuance will not exceed 30,000,000. Such stock options will be exercisable for a period of up to 10 years from the date of grant. Stock options may be exercised no later than 90 days following cessation of the optionee’s position with the Company unless anc exercise extension has been approved in advance by the Plan Administrator. Stock options granted vest based on terms and conditions set out in the stock option agreements themselves. On exercise, each stock option allows the holder to purchase one common share of the Company. The changes in stock options during the nine months ended September 30, 2020 were as follows: September 30, 2020 Number of options Weighted average exercise price Options outstanding, beginning 12,908,315 $ 2.07 Options granted 1,495,000 4.51 Options exercised (160,171) 0.60 Options expired and forfeited (762,706) 2.10 Options cancelled (105,000) 8.45 Options outstanding, ending 13,375,438 $ 2.18 Details of stock options outstanding as at September 30, 2020 were as follows: Weighted average Number of options Number of options Exercise price contractual life outstanding exercisable $ 0.30 1.70 2,164,773 2,164,773 $ 0.80 1.88 474,711 474,711 $ 2.00 1.85 263,434 247,533 $ 1.80 USD 6.05 120,000 110,000 $ 1.91 USD 6.19 5,050,000 2,254,449 $ 2.45 USD 5.85 1,250,000 1,250,000 $ 2.53 USD 5.86 131,818 131,818 $ 2.62 USD 1.73 700,000 262,500 $ 3.40 USD 4.69 1,228,182 1,228,182 $ 3.41 USD 6.81 1,458,750 509,580 $ 5.00 USD 1.84 347,834 347,834 $ 6.18 USD 4.86 38,544 27,088 $ 9.60 USD 4.08 147,392 105,893 13,375,438 9,114,361 The weighted average grant date fair value of stock options granted during the nine months ended September 30, 2020 was $2.16 (September 30, 2019 - $1.83). During the three and nine months ended September 30, 2020, the Company recognized stock-based compensation expense of $2,414,892 and $6,364,974 (three and nine months ended September 30, 2019 - $1,597,779 and $4,148,806), respectively.The Company also recognized stock-based compensation from DSUs and RSUs granted during the period. See discussion in the respective sections below Warrants On exercise, each warrant allows the holder to purchase one common share of the Company. The changes in warrants during the nine months ended September 30, 2020 and year ended December 31, 2019 were as follows: September 30, 2020 December 31, 2019 Number of Weighted average Number of Weighted average warrants exercise price warrants exercise price Warrants outstanding, beginning 20,603,396 $ 4.64 22,369,718 $ 5.03 Warrants issued — — — — Warrants exercised (1,648,065) 3.07 (1,116,322) 3.26 Warrants expired — — (650,000) 19.93 Warrants outstanding, ending 18,955,331 $ 4.84 20,603,396 $ 4.64 At September 30, 2020, all warrants outstanding were exercisable. Details of warrants outstanding as at September 30, 2020 were as follows: Weighted average Number of warrants Exercise Price contractual life outstanding Non-Transferable Warrants $0.80 CAD - $16.00 CAD 1.09 years 10,711,309 $2.00 USD - $24.00 USD 3.33 years 3,742,654 Transferable Warrants $4.25 USD 2.85 years 4,501,368 Warrants outstanding, ending 1.95 years 18,955,331 DSUs DSUs are stock-based awards that may be granted by the Company to certain eligible participants pursuant to its Plan. DSUs are accounted for as equity-settled share based payment transactions as the terms of a DSU provide the Company with the choice of whether to settle in cash or by issuing equity instruments. The Company measures the cost of equity-settled share-based transactions by reference to the fair value of the equity instruments at the date at which they are granted and is recorded in the statement of comprehensive loss in the period they are granted (immediate vesting) The changes in DSUs during the nine months ended September 30, 2020 were as follows: September 30, 2020 Number of options Weighted average exercise price DSUs outstanding, beginning — $ — DSUs granted 44,623 4.51 DSUs exercised — — DSUs outstanding, ending 44,623 $ 4.51 Details of DSUs outstanding as at September 30, 2020 are as follows: Number of DSUs Exercise price Weighted average contractual life Number of DSUs outstanding exercisable $3.41 USD 9.81 44,623 44,623 During the three and nine months ended September 30, 2020, the Company recognized stock-based compensation expense of $204,165 (three and nine months ended September 30, 2019 - $Nil) for DSUs granted during the period. RSUs RSUs are stock-based awards that may be granted by the Company to certain eligible participants pursuant to its current Stock Incentive Plan (the “Plan”) which was ratified by Company shareholders on July 9, 2020.. RSUs are accounted for as equity-settled share based payment transactions as the obligations under an RSU will be settled through the issuance of common shares. The Company measures the cost of equity-settled share-based transactions by reference to the fair value of the equity instruments at the date at which they are granted and is recorded in the statement of comprehensive loss over the vesting period. The changes in RSUs during the nine months ended September 30, 2020 were as follows: September 30, 2020 Number of options Weighted average exercise price RSUs outstanding, beginning — $ — RSUs granted 507,849 4.55 RSUs exercised — — RSUs outstanding, ending 507,849 $ 4.55 Details of RSUs outstanding as at September 30, 2020 were as follows: Exercise price Weighted average contractual life Number of RSUs outstanding Number of RSUs exercisable $3.44 USD 9.81 507,849 — During the three and nine months ended September 30, 2020, the Company recognized stock-based compensation expense of $361,295 (three and nine months ended September 30, 2019 - $ Nil) for RSUs granted during the period. |
Share Based Reserves
Share Based Reserves | 9 Months Ended |
Sep. 30, 2020 | |
Share Based Reserves | |
Share Based Reserves | 12. The share-based payment reserve records items that are recognized as stock-based compensation expense and other share-based payments until such time that the stock options are exercised, at which time the corresponding amount will be transferred to share capital. If the options expire unexercised, the amount remains in the share-based payment reserve account. |
General and administrative expe
General and administrative expenses | 9 Months Ended |
Sep. 30, 2020 | |
General and administrative expenses | |
General and administrative expenses | 13. Three months ended Nine months ended September 30, 2020 September 30, 2019 September 30, 2020 September 30, 2019 Rent $ 200,420 $ 87,777 $ 407,785 $ 283,261 Office expenses 417,002 407,095 1,190,088 1,181,434 Legal and professional 613,028 522,183 1,813,039 1,343,885 Consulting fees 271,259 535,303 1,045,137 1,373,906 Investor relations 76,398 53,112 296,249 261,814 Salaries 879,755 718,388 2,063,331 1,383,896 $ 2,457,862 $ 2,323,858 $ 6,815,629 $ 5,828,196 |
Research and development expens
Research and development expenses | 9 Months Ended |
Sep. 30, 2020 | |
Research and development expenses | |
Research and development expenses | 14. Three months ended Nine months ended September 30, 2020 September 30, 2019 September 30, 2020 September 30, 2019 Labor $ 1,469,492 $ 1,265,310 $ 3,927,296 $ 3,606,535 Materials 583,874 2,003,246 1,572,734 3,602,274 Government grants — (1,800) — (382,993) $ 2,053,366 $ 3,266,756 $ 5,500,030 $ 6,825,816 |
Sales and marketing expenses
Sales and marketing expenses | 9 Months Ended |
Sep. 30, 2020 | |
Sales and marketing expenses | |
Sales and marketing expenses | 15. Three months ended Nine months ended September 30, 2020 September 30, 2019 September 30, 2020 September 30, 2019 Consulting $ 79,930 $ 40,921 $ 340,345 $ 264,750 Marketing 287,073 153,111 464,249 441,254 Salaries 333,229 258,776 657,921 559,342 $ 700,232 $ 452,808 $ 1,462,515 $ 1,265,346 |
Other Income
Other Income | 9 Months Ended |
Sep. 30, 2020 | |
Other Income | |
Other Income | 16. Three months ended Nine months ended September 30, 2020 September 30, 2019 September 30, 2020 September 30, 2019 Paycheck Protraction Program Loan 1 $ — $ — $ 185,284 $ — Industrial Research Assistance Program Funding — — 243,936 — Canada Emergency Wage Subsidy 27,127 — 106,961 — Miscellaneous income — 17,711 10,141 71,639 $ 27,127 $ 17,711 $ 546,322 $ 71,639 1 On May 21, 2020, the Company entered into a promissory note evidencing an unsecured loan in the amount of US$133,700 made to the Company under the Paycheck Protection Program (the “Loan”). The Paycheck Protection Program (or “PPP”) was established under the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”) and is administered by the U.S. Small Business Administration. The Loan to the Company was made through BMO Harris Bank National Association (the “Lender”). The Loan bears interest rate of 1% per year and matures in 24 months from the date of the Loan. Beginning 7 months from the date of the Loan, the Company is required to make 18 monthly payments of principal and interest. Under the terms of the CARES Act, PPP loan recipients can apply for and be granted forgiveness for all or a portion of loan granted under the PPP. Such forgiveness will be determined, subject to limitations, based on the use of loan proceeds for payment of payroll costs and any covered payments of mortgage interest, rent and utilities. As at September 30, 2020, the Company has used all proceeds from the PPP Loan to maintain payroll and make lease and utility payments. The Company has filed a PPP loan forgiveness application with U.S. Small Business Administration. The Company meets the PPP loan forgiveness conditions listed in the PPP loan forgiveness application form in accordance with the established guidelines issued by U.S. Small Business Administration. Accordingly, the Company has accounted for the PPP Loan as a government grant in accordance with IAS 20 – Accounting for Government Grants and Disclosure of Government Assistance. During the nine months ended September 30, 2020, the Company received $243,936 from the Industrial Research Assistance Program Funding and $106,961 in Canada Emergency Wage Subsidy relief related to COVID-19. These governmental assistances received are non-repayable and were accounted for as government grants related to income in accordance with IAS 20. |
Segmented information
Segmented information | 9 Months Ended |
Sep. 30, 2020 | |
Segmented information | |
Segmented information | 17. The Company operates in two reportable business segments in Canada. The two reportable business segments offer different products, require different production processes, and are based on how the financial information is produced internally for the purposes of making operating decisions. The following summary describes the operations of each of the Company’s reportable business segments: · Electric Vehicles – development and manufacture of electric vehicles for mass markets, and · Custom built vehicles – development and manufacture of high-end custom-built vehicles. Sales between segments are accounted for at prices that approximate fair value. No business segments have been aggregated to form the above reportable business segments. Three months ended September 30, 2020 Three months ended September 30, 2019 Custom Built Custom Built Electric Vehicles Vehicles Electric Vehicles Vehicles Revenue $ — $ 327,285 $ — $ 200,068 Gross profit — 10,201 — 65,598 Operating expenses 8,701,493 82,376 7,742,592 128,115 Other items 6,195,203 (64,084) (2,475,303) 10,709 Current income tax recovery (129) (1,475) — — Deferred income tax recovery — (11,330) — (6,894) Net loss/(income) 14,896,567 (4,714) 5,267,289 66,332 FX translation (87,781) — 14,257 — Comprehensive loss/(income) 14,808,786 (4,714) 5,281,546 66,332 Nine months ended September 30, 2020 Nine months ended September 30, 2019 Electric Vehicles Custom Built Vehicles Electric Vehicles Custom Built Vehicles Revenue — 460,774 — 461,334 Gross profit/(loss) — (62,227) — 64,060 Operating expenses 21,540,426 205,426 18,753,216 320,376 Other items 8,164,157 (196,724) 3,713,023 13,498 Current income tax 947 (1,475) 2,140 — Deferred income tax recovery — (38,605) — (56,069) Net loss 29,705,530 30,849 22,468,379 213,745 FX translation 39,672 — (10,330) — Comprehensive loss 29,745,202 30,849 22,458,049 213,745 September 30, 2020 December 31, 2019 Electric Vehicles Custom Built Vehicles Electric Vehicles Custom Built Vehicles Inventory 836,959 539,449 307, 225 442,926 Plant and equipment 11,307,260 365,558 9,580,326 410,216 |
Related party transactions
Related party transactions | 9 Months Ended |
Sep. 30, 2020 | |
Related party transactions | |
Related party transactions | 18. Related party balances The following amounts are due to related parties: September 30, December 31, 2020 2019 Shareholder loan $ — $ 2,076 Due to related parties 398 275,512 $ 398 $ 277,588 These amounts are unsecured, non-interest bearing and have no fixed terms of repayment. Key management personnel compensation Three months ended Nine months ended September 30, 2020 September 30, 2019 September 30, 2020 September 30, 2019 Consulting fees $ — $ 137,569 $ 125,004 $ 382,701 Salaries 417,675 217,017 1,022,440 515,684 Directors fees 86,729 135,723 335,645 296,201 Stock-based compensation 1,510,041 1,372,613 5,351,490 3,328,759 $ 2,014,445 $ 1,862,922 $ 6,834,579 $ 4,523,345 |
Financial instruments and finan
Financial instruments and financial risk management | 9 Months Ended |
Sep. 30, 2020 | |
Financial instruments and financial risk management | |
Financial instruments and financial risk management | 19. The Company is exposed in varying degrees to a variety of financial instrument related risks. The Board of Directors approves and monitors the risk management processes, inclusive of controlling and reporting structures. The type of risk exposure and the way in which such exposure is managed is provided as follows: Credit risk Credit risk is the risk that one party to a financial instrument will fail to discharge an obligation and cause the other party to incur a financial loss. The Company’s primary exposure to credit risk is on its cash and cash equivalents held in bank accounts. The majority of cash is deposited in bank accounts held with major financial institutions in Canada. As most of the Company’s cash is held by one financial institution there is a concentration of credit risk. This risk is managed by using major financial institutions that are high credit quality financial institutions as determined by rating agencies. The Company’s secondary exposure to risk is on its receivables. This risk is minimal as receivables consist primarily of refundable government goods and services taxes and interest receivable from major financial institutions with high credit rating. Liquidity risk Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they fall due. The Company has a planning and budgeting process in place to help determine the funds required to support the Company’s normal operating requirements on an ongoing basis. The Company ensures that there are sufficient funds to meet its short-term business requirements, taking into account its anticipated cash flows from operations and its holdings of cash and cash equivalents. Historically, the Company’s source of funding has been shareholder loans and the issuance of equity securities for cash, primarily through private placements and public offerings. The Company’s access to financing is always uncertain. There can be no assurance of continued access to significant equity funding. The following is an analysis of the contractual maturities of the Company’s non-derivative financial liabilities as at September 30, 2020: Between one More than At September 30, 2020 Within one year and five years five years Trade payables $ 499,925 — — Accrued liabilities 2,032,961 — — Due to related parties 398 — — Shareholder loan — — — $ 2,533,284 $ — $ — See Note 9 for information on maturity schedule for lease liabilities. Foreign exchange risk Foreign currency risk is the risk that the fair values of future cash flows of a financial instrument will fluctuate because they are denominated in currencies that differ from the respective functional currency. The Company is exposed to currency risk as it incurs expenditures that are denominated in US dollars while its functional currency is the Canadian dollar. The Company does not hedge its exposure to fluctuations in foreign exchange rates. The following is an analysis of Canadian dollar equivalent of financial assets and liabilities that are denominated in US dollars: September 30, December 31, 2020 2019 Cash and cash equivalents $ 100,062,788 $ 10,555,007 Restricted cash 84,031 81,981 Receivables 136,606 192,998 Trade payables and accrued liabilities (2,080,400) (105,896) $ 98,203,025 $ 10,724,090 Based on the above net exposures, as at September 30, 2020, a 10% change in the US dollar to Canadian dollar exchange rate would impact the Company’s net loss by $9,820,302 (September 30, 2019 - $1,489,014). Interest rate risk Interest rate risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Company is exposed to interest rate risk on its cash equivalents as these instruments have original maturities of 12 months or less and are therefore exposed to interest rate fluctuations on renewal. A 1% change in market interest rates would have an impact on the Company’s net loss of $830,344 for the nine months ended September 30, 2020 (September 30, 2019 - $139,130). Classification of financial instruments Financial assets included in the consolidated statements of financial position are as follows: September 30, December 31, 2020 2019 Amortized cost: Cash and cash equivalents $ 101,054,943 $ 11,095,848 Restricted cash 186,570 184,314 Receivables 185,399 144,391 $ 101,426,912 $ 11,424,553 Financial liabilities included in the consolidated statements of financial position are as follows: September 30, December 31, 2020 2019 Non-derivative financial liabilities: Trade payable and accrued liabilities $ 2,533,284 $ 2,128,226 Shareholder loan — 2,076 Derivative financial liabilities: Derivative liability 10,473,131 7,072,134 $ 13,006,415 $ 9,202,436 Fair value The fair value of the Company’s financial assets and liabilities, other than the derivative liability which is measured at fair value, approximates the carrying amount. Financial instruments measured at fair value are classified into one of three levels in the fair value hierarchy according to the relative reliability of the inputs used to estimate the fair values. The three levels of the fair value hierarchy are: · Level 1 – Unadjusted quoted prices in active markets for identical assets or liabilities; · Level 2 – Inputs other than quoted prices that are observable for the asset or liability either directly or indirectly; and · Level 3 – Inputs that are not based on observable market data. Financial liabilities measured at fair value at September 30, 2020 consisted of the derivative liability, which includes transferrable warrants and non-transferrable warrants. Transferrable warrants are measured using level 1 inputs and non-transferrable warrants are measured using level 2 inputs. The fair value of the derivative liability relating to the transferrable warrants was calculated using the quoted market price on Nasdaq. The fair value of the derivative liability relating to the non-transferrable warrants was calculated using the Black-Scholes Option Pricing Model using historical volatility of comparable companies as an estimate of future volatility. At September 30, 2020, if the volatility used was increased by 10% the impact would be an increase to the derivative liability of $412,330 (September 30, 2019 - $544,540) with a corresponding increase in comprehensive loss. |
Capital management
Capital management | 9 Months Ended |
Sep. 30, 2020 | |
Capital management | |
Capital management | 20. The Company’s policy is to maintain a strong capital base so as to safeguard the Company’s ability to maintain its business and sustain future development of the business. The capital structure of the Company consists of equity. There were no changes in the Company’s approach to capital management during the nine months ended September 30, 2020. The Company is not subject to any externally imposed capital requirements. |
Lease commitments
Lease commitments | 9 Months Ended |
Sep. 30, 2020 | |
Lease commitments | |
Lease commitments | 21. The Company is committed to future minimum lease payments for short-term leases and a long-term lease with a lease commencement date of March 1, 2021, for which no lease liability has been recognized as at September 30, 2020 (Note 9). The leases are related to rental of office premises and kiosk locations. The details of lease commitments are as follows: Fiscal year Amount 2020 $ 132,950 2021 296,121 2022 191,712 2023 186,975 2024 and after 421,564 Total $ 1,229,322 Subsequent event From October 1, 2020 to the reporting date, the Company issued 98,750 shares at price of $2.00 per share for gross proceeds of $197,500 on exercise of warrants by certain investors. From October 1, 2020 to the reporting date, the Company issued 77,500 shares at prices of $0.30 to $2.00 per share for gross proceeds of $58,750 on exercise of stock options by certain Plan participants. |
Significant accounting polici_2
Significant accounting policies and basis of preparation (Policies) | 9 Months Ended |
Sep. 30, 2020 | |
Significant accounting policies and basis of preparation | |
Statement of compliance with International Financial Reporting Standards | Statement of compliance with International Financial Reporting Standards These interim condensed consolidated financial statements have been prepared in accordance with International Financial Reporting Standards (“IFRS”), as issued by the International Accounting Standards Board (“IASB”). These interim condensed consolidated financial statements are prepared in accordance with International Accounting Standards (“IAS”) 34 – Interim Financial Reporting on a basis consistent with those followed in our most recent annual consolidated financial statements for the year ended December 31, 2019. These interim condensed consolidated financial statements do not include all of the information required for full annual financial statements and should be read in conjunction with the Company’s audited consolidated financial statements for the year ended December 31, 2019. |
Basis of preparation | Basis of preparation The consolidated financial statements of the Company have been prepared on an accrual basis and are based on historical costs except for derivative liabilities which are measured at fair value. The Company’s functional and presentation currency is Canadian dollars. |
Consolidation | Consolidation The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries, EMV Automotive USA Inc., from the date of incorporation of January 22, 2018, InterMeccanica, from the date of its acquisition on October 18, 2017, EMV Automotive Technology (Chongqing) Inc., from the date of its incorporation on October 15, 2019, and SOLO EV, LLC, from the date of its incorporation on November 22, 2019. Inter-company balances and transactions, including unrealized income and expenses arising from inter-company transactions, are eliminated on consolidation. |
Significant estimates and assumptions | Significant estimates and assumptions The preparation of financial statements in accordance with IFRS requires the Company to make estimates and assumptions concerning the future. The Company’s management reviews these estimates and underlying assumptions on an ongoing basis, based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. Revisions to estimates are adjusted for prospectively in the period in which the estimates are revised. Estimates and assumptions where there is significant risk of material adjustments to assets and liabilities in future accounting periods include the estimated recoverable amount of goodwill, intangible assets and other long-lived assets, the useful lives of plant and equipment, fair value measurements for financial instruments and share-based payments, and the recoverability and measurement of deferred tax assets. The Covid-19 outbreak brings significant uncertainty as to the potential impact on our operations, supply chains for parts and sales channels for our products, and on the global economy as a whole. It is currently not possible to predict how long the pandemic will last or the time that it will take for economic activity to return to prior levels. Therefore, the Company has not changed any estimates and assumptions in the preparation of the financial statements. |
Significant judgments | Significant judgments The preparation of financial statements in accordance with IFRS requires the Company to make judgments, apart from those involving estimates, in applying accounting policies. The most significant areas that require judgment in the Company has consolidated financial statements include: - the assessment of the Company’s ability to continue as a going concern and whether there are events or conditions that may give rise to significant uncertainty; - the classification of financial instruments; and the calculation of income taxes require judgement in interpreting tax rules and regulations. |
Leases | Leases As a lessor When the Company acts as an intermediate lessor, it determines at lease inception whether each lease is a finance lease or an operating lease and accounts for its interest in the head lease and the sublease separately. It assesses the lease classification of a sublease with reference to the right-of-use asset arising from the head lease, not with reference to the underlying asset. If a head lease is a short-term lease to which the Company applies the exemption described above, then it classifies the sublease as an operating lease. |
Deferred revenue | Deferred revenue Deferred revenue consists primarily of advance payments that may be made to the Company by its manufacturing partner in China, Chongqing Zongshen Automobile Co., Ltd. (“Zongshen”), for royalties to be derived from the sales of SOLOs by Zongshen in China when any such sales, if any, are made in accordance with the terms of our manufacturing agreement. The deferred revenue from any such royalties will be recognized in profit or loss on a periodic basis as and when the Zongshen builds and sells the permitted number of SOLOs in China under the manufacturing agreement. |
Government grants | Government grants A government grant is recognized if there is reasonable assurance that it will be received and that the Company will comply with the conditions associated with the grant. If the conditions are met, the Company recognizes the grant in profit or loss on a systematic basis in line with its recognition of the expenses that the grant is intended to compensate. For grants related to income, a Company can elect to either offset the grant against the related expenditure or include it in other income. Government assistance received by the Company during the period have been accounted for as government grants related to income and have been included in other income. |
Restricted Stock Units | Restricted Stock Units Restricted Stock Units (“RSU”s) are stock-based awards that may be granted by the Company to certain eligible participants pursuant to its current Stock Incentive Plan (the “Plan”) which was ratified by Company shareholders on July 9, 2020.. RSUs are accounted for as equity-settled share based payment transactions as the obligations under an RSU will be settled through the issuance of common shares. The Company measures the cost of equity-settled share-based transactions by reference to the fair value of the equity instruments at the date at which they are granted and is recorded in the statement of comprehensive loss over the vesting period. |
Deferred Stock Units | Deferred Stock Units Deferred Stock Units (“DSU”s) are stock-based awards that may be granted by the Company to certain eligible participants pursuant to its Plan. DSUs are accounted for as equity-settled share based payment transactions as the terms of a DSU provide the Company with the choice of whether to settle in cash or by issuing equity instruments. The Company measures the cost of equity-settled share-based transactions by reference to the fair value of the equity instruments at the date at which they are granted and is recorded in the statement of comprehensive loss in the period they are granted (immediate vesting) |
Cash and cash equivalents (Tabl
Cash and cash equivalents (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Cash and cash equivalents | |
Schedule of cash and cash equivalents | September 30, December 31, 2020 2019 Cash $ 18,020,534 $ 2,670,877 Cash equivalent 83,034,409 8,424,971 $ 101,054,943 $ 11,095,848 |
Receivables (Tables)
Receivables (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Receivables | |
Schedule of receivables | September 30, December 31, 2020 2019 Trade receivable $ 6,286 $ 14,986 GST receivable 69,093 47,428 Scientific research and experimental development tax credits receivable — 249,111 Other receivables 179,114 129,405 $ 254,493 $ 440,930 |
Plant and equipment (Tables)
Plant and equipment (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Plant and equipment | |
Schedule of plant and equipment | Computer Furniture hardware Production and and Leasehold Right-of- tooling and equipment software Vehicles Improvements use assets molds Total Cost: December 31, 2018 494,487 133,403 388,049 384,341 — 4,549,948 5,950,228 Additions 73,691 139,863 — 129,327 — 3,310,971 3,653,852 Adoption of IFRS 16 — — — — 2,061,469 — 2,061,469 Disposals — (2,150) — — — — (2,150) December 31, 2019 568,178 271,116 388,049 513,668 2,061,469 7,860,919 11,663,399 Additions 21,003 223,063 73,791 64,701 364,575 2,218,032 2,965,165 Disposals — — (13,884) (36,110) — — (49,994) Lease termination and derecognition 1,2 — — — — (463,879) — (463,879) Foreign exchange difference 2,573 124 — 7,594 (46,124) — (35,833) September 30, 2020 591,754 494,303 447,956 549,853 1,916,041 10,078,951 14,078,858 Amortization: December 31, 2018 230,798 65,689 215,251 114,724 — — 626,462 Additions 77,975 65,600 117,326 121,951 664,797 — 1,047,649 Disposals — (1,254) — — — — (1,254) December 31, 2019 308,773 130,035 332,577 236,675 664,797 — 1,672,857 Additions 64,331 78,431 46,123 108,502 388,437 331,261 1,017,085 Disposals — — (9,659) (29,430) — — (39,089) Lease termination and derecognition 1,2 — — — — (260,443) — (260,443) Foreign exchange difference 472 16 — 2,913 12,229 — 15,630 September 30, 2020 373,576 208,482 369,041 318,660 805,020 331,261 2,406,040 Net book value: At December 31, 2019 259,405 141,081 55,472 276,993 1,396,672 7,860,919 9,990,542 September 30, 2020 218,178 285,821 78,915 231,193 1,111,021 9,747,690 11,672,818 1 The Company entered into a sublease agreement for its office space in Los Angeles, USA, with effect from February 1, 2020. As a result of the sublease, the Company derecognized the right-of-use asset relating to the head lease with cost of $319,365 and accumulated amortization of $161,565 (see Note 6 for further information on the net investment in sublease). 2 The Company terminated one of its warehouse leases on January 31, 2020. As a result of the termination, the Company derecognized the right-of-use asset of the warehouse with cost of $144,514 and accumulated amortization of $98,878 (see Note 9 for further information on the termination of the lease) |
Net investment in sublease (Tab
Net investment in sublease (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Net investment in sublease | |
Schedule of contractual undiscounted cash flows related to sublease | As at September 30, 2020, the contractual undiscounted cash flows related to sublease were as follows: Future Present value minimum of minimum lease lease payments Interest payments receivable income receivable Less than one year $ 126,213 $ 6,723 $ 119,490 Between one and five years — — — Net investment in sublease $ 126,213 $ 6,723 $ 119,490 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Goodwill and Intangible Assets | |
Schedule of goodwill and intangible assets | September 30, December 31, 2020 2019 Identifiable intangibles on acquisition of InterMeccanica $ 520,317 $ 524,067 Goodwill on acquisition of InterMeccanica 699,844 699,844 Other intangibles 15,220 15,220 $ 1,235,381 $ 1,239,131 |
Trade payables and accrued li_2
Trade payables and accrued liabilities (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Trade payables and accrued liabilities | |
Schedule of trade payables and accrued liabilities | September 30, December 31, 2020 2019 Trade payables $ 499,925 $ 693,502 Due to related parties (Note 18) 398 275,512 Accrued liabilities 2,032,961 1,159,212 $ 2,533,284 $ 2,128,226 |
Lease liabilities (Tables)
Lease liabilities (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Lease liabilities. | |
Schedule of change in the lease liabilitities | Balance as at January 1, 2020 $ 1,463,676 Lease addition 369,808 Lease termination (47,239) Accretion of lease liability 81,275 Repayment of principal and interest (523,854) Balance as at September 30, 2020 $ 1,343,666 |
Schedule of the contractual undiscounted cash flows related to leases | Present value of Future minimum minimum lease lease payments Interest payments Less than one year $ 744,541 $ 84,254 $ 660,287 Between one and five years 617,447 117,534 499,913 More than five years 196,044 12,578 183,466 $ 1,558,032 $ 214,366 $ 1,343,666 Current portion of lease liabilities 660,287 Non-current portion of lease liabilities $ 683,379 |
Derivative liability (Tables)
Derivative liability (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Derivative liability | |
Schedule of changes in fair values of the derivative liability | September 30, December 31, 2020 2019 Balance, beginning $ 7,072,134 $ 4,752,875 Warrants issued — — Warrants exercised (4,357,931) (607,133) Changes in fair value of derivative liabilities 7,758,928 2,926,392 Balance, ending $ 10,473,131 $ 7,072,134 |
Share capital (Tables)
Share capital (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Share capital | |
Schedule of changes in options | September 30, 2020 Number of options Weighted average exercise price Options outstanding, beginning 12,908,315 $ 2.07 Options granted 1,495,000 4.51 Options exercised (160,171) 0.60 Options expired and forfeited (762,706) 2.10 Options cancelled (105,000) 8.45 Options outstanding, ending 13,375,438 $ 2.18 |
Schedule of details of options outstanding | Weighted average Number of options Number of options Exercise price contractual life outstanding exercisable $ 0.30 1.70 2,164,773 2,164,773 $ 0.80 1.88 474,711 474,711 $ 2.00 1.85 263,434 247,533 $ 1.80 USD 6.05 120,000 110,000 $ 1.91 USD 6.19 5,050,000 2,254,449 $ 2.45 USD 5.85 1,250,000 1,250,000 $ 2.53 USD 5.86 131,818 131,818 $ 2.62 USD 1.73 700,000 262,500 $ 3.40 USD 4.69 1,228,182 1,228,182 $ 3.41 USD 6.81 1,458,750 509,580 $ 5.00 USD 1.84 347,834 347,834 $ 6.18 USD 4.86 38,544 27,088 $ 9.60 USD 4.08 147,392 105,893 13,375,438 9,114,361 |
Schedule of changes in warrants | September 30, 2020 December 31, 2019 Number of Weighted average Number of Weighted average warrants exercise price warrants exercise price Warrants outstanding, beginning 20,603,396 $ 4.64 22,369,718 $ 5.03 Warrants issued — — — — Warrants exercised (1,648,065) 3.07 (1,116,322) 3.26 Warrants expired — — (650,000) 19.93 Warrants outstanding, ending 18,955,331 $ 4.84 20,603,396 $ 4.64 |
Schedule of details in warrants outstanding | Weighted average Number of warrants Exercise Price contractual life outstanding Non-Transferable Warrants $0.80 CAD - $16.00 CAD 1.09 years 10,711,309 $2.00 USD - $24.00 USD 3.33 years 3,742,654 Transferable Warrants $4.25 USD 2.85 years 4,501,368 Warrants outstanding, ending 1.95 years 18,955,331 |
Schedule of changes in deferred share units | September 30, 2020 Number of options Weighted average exercise price DSUs outstanding, beginning — $ — DSUs granted 44,623 4.51 DSUs exercised — — DSUs outstanding, ending 44,623 $ 4.51 |
Schedule of details of deferred share units outstanding | Number of DSUs Exercise price Weighted average contractual life Number of DSUs outstanding exercisable $3.41 USD 9.81 44,623 44,623 |
Schedule of changes in restricted share units | September 30, 2020 Number of options Weighted average exercise price RSUs outstanding, beginning — $ — RSUs granted 507,849 4.55 RSUs exercised — — RSUs outstanding, ending 507,849 $ 4.55 |
Schedule of details of restricted share units outstanding | Exercise price Weighted average contractual life Number of RSUs outstanding Number of RSUs exercisable $3.44 USD 9.81 507,849 — |
General and administrative ex_2
General and administrative expenses (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
General and administrative expenses | |
Schedule of general and administrative expenses | Three months ended Nine months ended September 30, 2020 September 30, 2019 September 30, 2020 September 30, 2019 Rent $ 200,420 $ 87,777 $ 407,785 $ 283,261 Office expenses 417,002 407,095 1,190,088 1,181,434 Legal and professional 613,028 522,183 1,813,039 1,343,885 Consulting fees 271,259 535,303 1,045,137 1,373,906 Investor relations 76,398 53,112 296,249 261,814 Salaries 879,755 718,388 2,063,331 1,383,896 $ 2,457,862 $ 2,323,858 $ 6,815,629 $ 5,828,196 |
Research and development expe_2
Research and development expenses (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Research and development expenses | |
Schedule of research and development expense | Three months ended Nine months ended September 30, 2020 September 30, 2019 September 30, 2020 September 30, 2019 Labor $ 1,469,492 $ 1,265,310 $ 3,927,296 $ 3,606,535 Materials 583,874 2,003,246 1,572,734 3,602,274 Government grants — (1,800) — (382,993) $ 2,053,366 $ 3,266,756 $ 5,500,030 $ 6,825,816 |
Sales and marketing expenses (T
Sales and marketing expenses (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Sales and marketing expenses | |
Schedule of sales and marketing expenses | Three months ended Nine months ended September 30, 2020 September 30, 2019 September 30, 2020 September 30, 2019 Consulting $ 79,930 $ 40,921 $ 340,345 $ 264,750 Marketing 287,073 153,111 464,249 441,254 Salaries 333,229 258,776 657,921 559,342 $ 700,232 $ 452,808 $ 1,462,515 $ 1,265,346 |
Other Income (Tables)
Other Income (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Other Income | |
Schedule of other income | Three months ended Nine months ended September 30, 2020 September 30, 2019 September 30, 2020 September 30, 2019 Paycheck Protraction Program Loan 1 $ — $ — $ 185,284 $ — Industrial Research Assistance Program Funding — — 243,936 — Canada Emergency Wage Subsidy 27,127 — 106,961 — Miscellaneous income — 17,711 10,141 71,639 $ 27,127 $ 17,711 $ 546,322 $ 71,639 1 On May 21, 2020, the Company entered into a promissory note evidencing an unsecured loan in the amount of US$133,700 made to the Company under the Paycheck Protection Program (the “Loan”). The Paycheck Protection Program (or “PPP”) was established under the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”) and is administered by the U.S. Small Business Administration. The Loan to the Company was made through BMO Harris Bank National Association (the “Lender”). |
Segmented information (Tables)
Segmented information (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Segmented information | |
Schedule of segmented information | Three months ended September 30, 2020 Three months ended September 30, 2019 Custom Built Custom Built Electric Vehicles Vehicles Electric Vehicles Vehicles Revenue $ — $ 327,285 $ — $ 200,068 Gross profit — 10,201 — 65,598 Operating expenses 8,701,493 82,376 7,742,592 128,115 Other items 6,195,203 (64,084) (2,475,303) 10,709 Current income tax recovery (129) (1,475) — — Deferred income tax recovery — (11,330) — (6,894) Net loss/(income) 14,896,567 (4,714) 5,267,289 66,332 FX translation (87,781) — 14,257 — Comprehensive loss/(income) 14,808,786 (4,714) 5,281,546 66,332 Nine months ended September 30, 2020 Nine months ended September 30, 2019 Electric Vehicles Custom Built Vehicles Electric Vehicles Custom Built Vehicles Revenue — 460,774 — 461,334 Gross profit/(loss) — (62,227) — 64,060 Operating expenses 21,540,426 205,426 18,753,216 320,376 Other items 8,164,157 (196,724) 3,713,023 13,498 Current income tax 947 (1,475) 2,140 — Deferred income tax recovery — (38,605) — (56,069) Net loss 29,705,530 30,849 22,468,379 213,745 FX translation 39,672 — (10,330) — Comprehensive loss 29,745,202 30,849 22,458,049 213,745 September 30, 2020 December 31, 2019 Electric Vehicles Custom Built Vehicles Electric Vehicles Custom Built Vehicles Inventory 836,959 539,449 307, 225 442,926 Plant and equipment 11,307,260 365,558 9,580,326 410,216 |
Related party transactions (Tab
Related party transactions (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Related party transactions | |
Schedule of related party balances | September 30, December 31, 2020 2019 Shareholder loan $ — $ 2,076 Due to related parties 398 275,512 $ 398 $ 277,588 |
Schedule of key management personnel compensation | Three months ended Nine months ended September 30, 2020 September 30, 2019 September 30, 2020 September 30, 2019 Consulting fees $ — $ 137,569 $ 125,004 $ 382,701 Salaries 417,675 217,017 1,022,440 515,684 Directors fees 86,729 135,723 335,645 296,201 Stock-based compensation 1,510,041 1,372,613 5,351,490 3,328,759 $ 2,014,445 $ 1,862,922 $ 6,834,579 $ 4,523,345 |
Financial instruments and fin_2
Financial instruments and financial risk management (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Financial instruments and financial risk management | |
Schedule of contractual maturities of non-derivative financial liabilities | Between one More than At September 30, 2020 Within one year and five years five years Trade payables $ 499,925 — — Accrued liabilities 2,032,961 — — Due to related parties 398 — — Shareholder loan — — — $ 2,533,284 $ — $ — |
Schedule of financial assets and liabilities that are denominated in US dollars | September 30, December 31, 2020 2019 Cash and cash equivalents $ 100,062,788 $ 10,555,007 Restricted cash 84,031 81,981 Receivables 136,606 192,998 Trade payables and accrued liabilities (2,080,400) (105,896) $ 98,203,025 $ 10,724,090 |
Schedule of classification of financial instruments | September 30, December 31, 2020 2019 Amortized cost: Cash and cash equivalents $ 101,054,943 $ 11,095,848 Restricted cash 186,570 184,314 Receivables 185,399 144,391 $ 101,426,912 $ 11,424,553 September 30, December 31, 2020 2019 Non-derivative financial liabilities: Trade payable and accrued liabilities $ 2,533,284 $ 2,128,226 Shareholder loan — 2,076 Derivative financial liabilities: Derivative liability 10,473,131 7,072,134 $ 13,006,415 $ 9,202,436 |
Lease commitments (Tables)
Lease commitments (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Lease commitments | |
Schedule of future minimum lease payments | Fiscal year Amount 2020 $ 132,950 2021 296,121 2022 191,712 2023 186,975 2024 and after 421,564 Total $ 1,229,322 |
Cash and cash equivalents (Deta
Cash and cash equivalents (Details) - CAD ($) | Sep. 30, 2020 | Jun. 30, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Dec. 31, 2018 |
Cash and cash equivalents | ||||||
Cash | $ 18,020,534 | $ 2,670,877 | ||||
Cash equivalent | 83,034,409 | 8,424,971 | ||||
Cash and cash equivalents | $ 101,054,943 | $ 51,252,752 | $ 11,095,848 | $ 16,225,503 | $ 21,388,624 | $ 18,926,933 |
Receivables (Details)
Receivables (Details) - CAD ($) | Sep. 30, 2020 | Dec. 31, 2019 |
Disclosure of detailed information about financial instruments [line items] | ||
Receivables | $ 254,493 | $ 440,930 |
Trade receivable | ||
Disclosure of detailed information about financial instruments [line items] | ||
Receivables | 6,286 | 14,986 |
GST receivable | ||
Disclosure of detailed information about financial instruments [line items] | ||
Receivables | 69,093 | 47,428 |
SR&ED tax credits receivable | ||
Disclosure of detailed information about financial instruments [line items] | ||
Receivables | 249,111 | |
Other receivable | ||
Disclosure of detailed information about financial instruments [line items] | ||
Receivables | $ 179,114 | $ 129,405 |
Plant and equipment (Details)
Plant and equipment (Details) - CAD ($) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2020 | Dec. 31, 2019 | |
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning balance | $ 9,990,542 | |
Ending balance | 11,672,818 | $ 9,990,542 |
Cost | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning balance | 11,663,399 | 5,950,228 |
Additions | 2,965,165 | 3,653,852 |
Adoption of IFRS 16 | 2,061,469 | |
Disposals | (49,994) | (2,150) |
Lease termination and derecognition | (463,879) | |
Foreign exchange difference | (35,833) | |
Ending balance | 14,078,858 | 11,663,399 |
Amortization | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning balance | (1,672,857) | (626,462) |
Additions | 1,017,085 | 1,047,649 |
Disposals | 39,089 | 1,254 |
Lease termination and derecognition | (260,443) | |
Foreign exchange difference | 15,630 | |
Ending balance | (2,406,040) | (1,672,857) |
Furniture and equipment | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning balance | 259,405 | |
Ending balance | 218,178 | 259,405 |
Furniture and equipment | Cost | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning balance | 568,178 | 494,487 |
Additions | 21,003 | 73,691 |
Foreign exchange difference | 2,573 | |
Ending balance | 591,754 | 568,178 |
Furniture and equipment | Amortization | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning balance | (308,773) | (230,798) |
Additions | 64,331 | 77,975 |
Foreign exchange difference | 472 | |
Ending balance | (373,576) | (308,773) |
Computer hardware and software | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning balance | 141,081 | |
Ending balance | 285,821 | 141,081 |
Computer hardware and software | Cost | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning balance | 271,116 | 133,403 |
Additions | 223,063 | 139,863 |
Disposals | (2,150) | |
Foreign exchange difference | 124 | |
Ending balance | 494,303 | 271,116 |
Computer hardware and software | Amortization | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning balance | (130,035) | (65,689) |
Additions | 78,431 | 65,600 |
Disposals | 1,254 | |
Foreign exchange difference | 16 | |
Ending balance | (208,482) | (130,035) |
Vehicles | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning balance | 55,472 | |
Ending balance | 78,915 | 55,472 |
Vehicles | Cost | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning balance | 388,049 | 388,049 |
Additions | 73,791 | |
Disposals | (13,884) | |
Ending balance | 447,956 | 388,049 |
Vehicles | Amortization | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning balance | (332,577) | (215,251) |
Additions | 46,123 | 117,326 |
Disposals | 9,659 | |
Ending balance | (369,041) | (332,577) |
Leasehold improvements | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning balance | 276,993 | |
Ending balance | 231,193 | 276,993 |
Leasehold improvements | Cost | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning balance | 513,668 | 384,341 |
Additions | 64,701 | 129,327 |
Disposals | (36,110) | |
Foreign exchange difference | 7,594 | |
Ending balance | 549,853 | 513,668 |
Leasehold improvements | Amortization | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning balance | (236,675) | (114,724) |
Additions | 108,502 | 121,951 |
Disposals | 29,430 | |
Foreign exchange difference | 2,913 | |
Ending balance | (318,660) | (236,675) |
Right-of-use assets | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning balance | 1,396,672 | |
Ending balance | 1,111,021 | 1,396,672 |
Right-of-use assets | Cost | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning balance | 2,061,469 | |
Additions | 364,575 | |
Adoption of IFRS 16 | 2,061,469 | |
Lease termination and derecognition | (463,879) | |
Foreign exchange difference | (46,124) | |
Ending balance | 1,916,041 | 2,061,469 |
Right-of-use assets | Amortization | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning balance | (664,797) | |
Additions | 388,437 | 664,797 |
Lease termination and derecognition | (260,443) | |
Foreign exchange difference | 12,229 | |
Ending balance | (805,020) | (664,797) |
Production tooling and molds | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning balance | 7,860,919 | |
Ending balance | 9,747,690 | 7,860,919 |
Production tooling and molds | Cost | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning balance | 7,860,919 | 4,549,948 |
Additions | 2,218,032 | 3,310,971 |
Ending balance | 10,078,951 | $ 7,860,919 |
Production tooling and molds | Amortization | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Additions | 331,261 | |
Ending balance | $ (331,261) |
Plant and equipment - Additiona
Plant and equipment - Additional information (Details) ¥ in Millions | Jan. 31, 2020CAD ($) | Feb. 29, 2020CAD ($) | Sep. 30, 2020CNY (¥) | Sep. 30, 2020CAD ($) | Oct. 16, 2017CNY (¥)shares | Oct. 16, 2017CAD ($)shares | Sep. 18, 2017CNY (¥) | Sep. 18, 2017CAD ($) |
Disclosure of detailed information about property, plant and equipment [line items] | ||||||||
Lease derecognition | $ 144,514 | $ 319,365 | ||||||
Lease termination | $ 98,878 | $ 161,565 | ||||||
Manufacturing Agreement | Chongqing Zongshen Automobile Co., Ltd. | ||||||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||||||
Description of purchase orders | payable 50% when Zongshen commences manufacturing the tooling and molds, 40% when Zongshen completes manufacturing the tooling and molds, and 10% upon delivery to the Company of the first production vehicle. As at September 30, 2020, the Company has commenced commercial production and delivered the first production vehicle. Therefore, the Company has paid 100% of the prototype tooling and molds with actual cost of CNY ¥10.1 million ($2.1 million) and 79% of the mass production tooling and molds with actual cost of CNY ¥40 million ($8.0 million). The unpaid amount of mass production tooling and molds is included in accrued liabilities as at September 30, 2020. As assessed by the Company, the prototype tooling and molds can be adapted for use in mass production. The prototype and mass production tooling and molds are estimated to be used for 3 years to produce the Generation 3 SOLO EVs. The existing production tooling and molds will be depreciated on a straight line basis over a 3 year period as the assets were custom built for the production of the Generation 3 SOLO EVs and will be retired at the end of the production run. The Company estimates that the residual value of the assets will be minimal at the end of the 3 year period. During the three and nine months ended September 30, 2020, $331,261 ($Nil - three and nine months ended September 30, 2019) was charged to amortization expenses. No amounts were allocated to inventory or charged to cost of goods sold during the period as the Generation 3 SOLO EVs completed as at September 30, 2020 are intended to be used as marketing vehicles for customers to test drive. The Company doesn't intend to sell these marketing vehicles to customers in future periods | |||||||
Manufacturing Agreement | Chongqing Zongshen Automobile Co., Ltd. | Prototype Tooling and Molds | ||||||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||||||
Agreement estimated cost | ¥ 9.5 | $ 1,800,000 | ||||||
Manufacturing Agreement | Chongqing Zongshen Automobile Co., Ltd. | Mass Production Tooling and Molds | ||||||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||||||
Agreement estimated cost | ¥ 29 | $ 5,500,000 | ||||||
Share Pledge Agreement | Chongqing Zongshen Automobile Co., Ltd. | Prototype Tooling and Molds | ||||||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||||||
Agreement estimated cost | ¥ 9.5 | $ 1,800,000 | ||||||
Share pledge agreement common shares | shares | 400,000 | 400,000 |
Net investment in sublease (Det
Net investment in sublease (Details) | 3 Months Ended | 9 Months Ended |
Sep. 30, 2020CAD ($) | Sep. 30, 2020CAD ($) | |
Disclosure of maturity analysis of finance lease payments receivable [line items] | ||
Lease modification loss of net investment in sublease | $ 32,486 | $ 32,486 |
Future minimum lease payments receivable | 126,213 | 126,213 |
Interest income | 6,723 | 6,723 |
Present value of minimum lease payments receivable | 119,490 | 119,490 |
Less than one year | ||
Disclosure of maturity analysis of finance lease payments receivable [line items] | ||
Future minimum lease payments receivable | 126,213 | 126,213 |
Interest income | 6,723 | 6,723 |
Present value of minimum lease payments receivable | $ 119,490 | $ 119,490 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets (Details) - CAD ($) | Sep. 30, 2020 | Dec. 31, 2019 |
Disclosure of reconciliation of changes in goodwill [line items] | ||
Goodwill and intangible assets | $ 1,235,381 | $ 1,239,131 |
Identifiable intangibles on acquisition of Intermeccanica | ||
Disclosure of reconciliation of changes in goodwill [line items] | ||
Goodwill and intangible assets | 520,317 | 524,067 |
Goodwill on acquisition of Intermeccanica | ||
Disclosure of reconciliation of changes in goodwill [line items] | ||
Goodwill and intangible assets | 699,844 | 699,844 |
Other intangibles | ||
Disclosure of reconciliation of changes in goodwill [line items] | ||
Goodwill and intangible assets | $ 15,220 | $ 15,220 |
Trade payables and accrued li_3
Trade payables and accrued liabilities (Details) - CAD ($) | Sep. 30, 2020 | Dec. 31, 2019 |
Trade payables and accrued liabilities | ||
Trade payables | $ 499,925 | $ 693,502 |
Due to related parties (Note 18) | 398 | 275,512 |
Accrued liabilities | 2,032,961 | 1,159,212 |
Trade payables and accrued liabilities | $ 2,533,284 | $ 2,128,226 |
Lease liabilities - change in t
Lease liabilities - change in the lease liability and discloses a maturity analysis (Details) - CAD ($) | Jan. 31, 2020 | Sep. 30, 2020 |
Lease liabilities. | ||
Balance as at beginning period | $ 1,463,676 | |
Lease addition | 369,808 | |
Lease termination | $ 47,238 | (47,239) |
Accretion of lease liability | 81,275 | |
Repayment of principal and interest | (523,854) | |
Balance as at end period | $ 1,343,666 |
Lease liabilities (Details)
Lease liabilities (Details) - CAD ($) | 6 Months Ended | 9 Months Ended | |
Jun. 30, 2020 | Sep. 30, 2020 | Dec. 31, 2019 | |
Disclosure of maturity analysis of lease payments [line items] | |||
Future minimum lease payments | $ 1,558,032 | ||
Interest | 214,366 | ||
Present value of minimum lease payments | $ 1,343,666 | ||
Current portion of lease liabilities | $ 660,287 | $ 604,886 | |
Non-current portion of lease liabilities | 683,379 | $ 858,790 | |
Less than one year | |||
Disclosure of maturity analysis of lease payments [line items] | |||
Future minimum lease payments | 744,541 | ||
Interest | 84,254 | ||
Present value of minimum lease payments | 660,287 | ||
Between one and five years | |||
Disclosure of maturity analysis of lease payments [line items] | |||
Future minimum lease payments | 617,447 | ||
Interest | 117,534 | ||
Present value of minimum lease payments | 499,913 | ||
More than five years | |||
Disclosure of maturity analysis of lease payments [line items] | |||
Future minimum lease payments | 196,044 | ||
Interest | 12,578 | ||
Present value of minimum lease payments | $ 183,466 |
Lease liabilities - Additional
Lease liabilities - Additional information (Details) - CAD ($) | Jan. 31, 2020 | Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 |
Lease liabilities. | |||||
Term of leases expire | 5 years | ||||
Lease termination, lease liability | $ 47,238 | $ (47,239) | |||
Lease termination, right of use assets | $ 45,636 | ||||
Lease expenses for short-term lease and low-value lease which are not included in the measurement of lease liabilities | $ 91,043 | $ 11,777 | $ 140,035 | $ 12,620 |
Derivative liability - Changes
Derivative liability - Changes in fair values of the derivative liability (Details) | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2020$ / shares | Sep. 30, 2020CAD ($) | Dec. 31, 2019CAD ($) | |
Derivative liability | |||
Balance, beginning | $ 7,072,134 | $ 4,752,875 | |
Warrants issued | 0 | 0 | |
Warrants exercised | (4,357,931) | (607,133) | |
Changes in fair value of derivative liabilities | 7,758,928 | 2,926,392 | |
Balance, ending | $ 10,473,131 | $ 7,072,134 | |
Warrants Issuance Price Per Share | $ / shares | $ 0.50 | ||
Warrants Price Per Share | $ / shares | $ 1.20 |
Share capital - Changes in opti
Share capital - Changes in options (Details) - Stock options | 9 Months Ended |
Sep. 30, 2020$ / sharesshares | |
Disclosure of classes of share capital [line items] | |
Number of options outstanding, beginning | shares | 12,908,315 |
Number of options, Options granted | shares | 1,495,000 |
Number of options, Options exercised | shares | (160,171) |
Number of options, Options expired and forfeited | shares | (762,706) |
Number of options, Options cancelled | shares | (105,000) |
Number of options outstanding, ending | shares | 13,375,438 |
Weighted average exercise price, Options outstanding, beginning | $ / shares | $ 2.07 |
Weighted average exercise price, Options granted | $ / shares | 4.51 |
Weighted average exercise price, Options exercised | $ / shares | 0.60 |
Weighted average exercise price, Options expired and forfeited | $ / shares | 2.10 |
Weighted average exercise price, Options cancelled | $ / shares | 8.45 |
Weighted average exercise price, Options outstanding, ending | $ / shares | $ 2.18 |
Share capital - Options outstan
Share capital - Options outstanding (Details) - Stock options | 9 Months Ended | |
Sep. 30, 2020$ / sharesshares | Sep. 30, 2020$ / sharesshares | |
Disclosure of classes of share capital [line items] | ||
Number of options outstanding | 13,375,438 | 13,375,438 |
Number of options exercisable | 9,114,361 | 9,114,361 |
Exercise price $ 0.30 | ||
Disclosure of classes of share capital [line items] | ||
Exercise price | $ / shares | $ 0.30 | |
Weighted average contractual life | 1 year 8 months 12 days | |
Number of options outstanding | 2,164,773 | 2,164,773 |
Number of options exercisable | 2,164,773 | 2,164,773 |
Exercise price $ 0.80 | ||
Disclosure of classes of share capital [line items] | ||
Exercise price | $ / shares | $ 0.80 | |
Weighted average contractual life | 1 year 10 months 17 days | |
Number of options outstanding | 474,711 | 474,711 |
Number of options exercisable | 474,711 | 474,711 |
Exercise price $ 2.00 | ||
Disclosure of classes of share capital [line items] | ||
Exercise price | $ / shares | $ 2 | |
Weighted average contractual life | 1 year 10 months 6 days | |
Number of options outstanding | 263,434 | 263,434 |
Number of options exercisable | 247,533 | 247,533 |
Exercise Price $1.80 USD | ||
Disclosure of classes of share capital [line items] | ||
Exercise price | $ / shares | $ 1.80 | |
Weighted average contractual life | 6 years 18 days | |
Number of options outstanding | 120,000 | 120,000 |
Number of options exercisable | 110,000 | 110,000 |
Exercise Price $1.91 USD | ||
Disclosure of classes of share capital [line items] | ||
Exercise price | $ / shares | $ 1.91 | |
Weighted average contractual life | 6 years 2 months 9 days | |
Number of options outstanding | 5,050,000 | 5,050,000 |
Number of options exercisable | 2,254,449 | 2,254,449 |
Exercise price $ 2.45 USD | ||
Disclosure of classes of share capital [line items] | ||
Exercise price | $ / shares | $ 2.45 | |
Weighted average contractual life | 5 years 10 months 6 days | |
Number of options outstanding | 1,250,000 | 1,250,000 |
Number of options exercisable | 1,250,000 | 1,250,000 |
Exercise Price $2.53 USD | ||
Disclosure of classes of share capital [line items] | ||
Exercise price | $ / shares | $ 2.53 | |
Weighted average contractual life | 5 years 10 months 10 days | |
Number of options outstanding | 131,818 | 131,818 |
Number of options exercisable | 131,818 | 131,818 |
Exercise price $ 2.62 USD | ||
Disclosure of classes of share capital [line items] | ||
Exercise price | $ / shares | $ 2.62 | |
Weighted average contractual life | 1 year 8 months 23 days | |
Number of options outstanding | 700,000 | 700,000 |
Number of options exercisable | 262,500 | 262,500 |
Exercise price $ 3.40 USD | ||
Disclosure of classes of share capital [line items] | ||
Exercise price | $ / shares | $ 3.40 | |
Weighted average contractual life | 4 years 8 months 9 days | |
Number of options outstanding | 1,228,182 | 1,228,182 |
Number of options exercisable | 1,228,182 | 1,228,182 |
Exercise price $ 3.41 USD | ||
Disclosure of classes of share capital [line items] | ||
Exercise price | $ / shares | $ 3.41 | |
Weighted average contractual life | 6 years 9 months 22 days | |
Number of options outstanding | 1,458,750 | 1,458,750 |
Number of options exercisable | 509,580 | 509,580 |
Exercise price $ 5.00 USD | ||
Disclosure of classes of share capital [line items] | ||
Exercise price | $ / shares | $ 5 | |
Weighted average contractual life | 1 year 10 months 2 days | |
Number of options outstanding | 347,834 | 347,834 |
Number of options exercisable | 347,834 | 347,834 |
Exercise price $ 6.18 USD | ||
Disclosure of classes of share capital [line items] | ||
Exercise price | $ / shares | $ 6.18 | |
Weighted average contractual life | 4 years 10 months 10 days | |
Number of options outstanding | 38,544 | 38,544 |
Number of options exercisable | 27,088 | 27,088 |
Exercise price $ 9.60 USD | ||
Disclosure of classes of share capital [line items] | ||
Exercise price | $ / shares | $ 9.60 | |
Weighted average contractual life | 4 years 29 days | |
Number of options outstanding | 147,392 | 147,392 |
Number of options exercisable | 105,893 | 105,893 |
Share capital - The changes in
Share capital - The changes in warrants (Details) - $ / shares | Jul. 07, 2020 | Sep. 30, 2020 | Dec. 31, 2019 |
Disclosure of classes of share capital [line items] | |||
Number of warrants, Warrants exercised | (75,315) | ||
Warrants | |||
Disclosure of classes of share capital [line items] | |||
Number of warrants, Warrants outstanding, beginning | 20,603,396 | 22,369,718 | |
Number of warrants, Warrants issued | 0 | ||
Number of warrants, Warrants exercised | (1,648,065) | (1,116,322) | |
Number of warrants expired | 0 | (650,000) | |
Number of warrants, Warrants outstanding, ending | 18,955,331 | 20,603,396 | |
Weighted average exercise price, Warrants outstanding, beginning | $ 4.64 | $ 5.03 | |
Weighted average exercise price, Warrants issued | 0 | 19.93 | |
Weighted average exercise price, Warrants exercised | 3.07 | 3.26 | |
Weighted average exercise price, Warrants expired | 0 | ||
Weighted average exercise price, Warrants outstanding, ending | $ 4.84 | $ 4.64 |
Share capital - Warrants outsta
Share capital - Warrants outstanding (Details) - Warrants | 9 Months Ended | |||
Sep. 30, 2020$ / sharesshares | Sep. 30, 2020$ / sharesshares | Dec. 31, 2019shares | Dec. 31, 2018shares | |
Disclosure of classes of share capital [line items] | ||||
Weighted average contractual life | 1 year 11 months 12 days | |||
Number of warrants outstanding | shares | 18,955,331 | 18,955,331 | 20,603,396 | 22,369,718 |
Non-Transferable Warrants $0.80 CAD - $16.00 CAD | ||||
Disclosure of classes of share capital [line items] | ||||
Weighted average contractual life | 1 year 1 month 2 days | |||
Number of warrants outstanding | shares | 10,711,309 | 10,711,309 | ||
Non-Transferable Warrants $0.80 CAD - $16.00 CAD | Minimum | ||||
Disclosure of classes of share capital [line items] | ||||
Exercise price | $ 0.80 | |||
Non-Transferable Warrants $0.80 CAD - $16.00 CAD | Maximum | ||||
Disclosure of classes of share capital [line items] | ||||
Exercise price | $ 16 | |||
Non-Transferable Warrants $2.00 USD - $24.00 USD | ||||
Disclosure of classes of share capital [line items] | ||||
Weighted average contractual life | 3 years 3 months 29 days | |||
Number of warrants outstanding | shares | 3,742,654 | 3,742,654 | ||
Non-Transferable Warrants $2.00 USD - $24.00 USD | Minimum | ||||
Disclosure of classes of share capital [line items] | ||||
Exercise price | $ 2 | |||
Non-Transferable Warrants $2.00 USD - $24.00 USD | Maximum | ||||
Disclosure of classes of share capital [line items] | ||||
Exercise price | 24 | |||
Transferable Warrants $4.25 USD | ||||
Disclosure of classes of share capital [line items] | ||||
Exercise price | $ 4.25 | |||
Weighted average contractual life | 2 years 10 months 6 days | |||
Number of warrants outstanding | shares | 4,501,368 | 4,501,368 |
Share capital - Deferred share
Share capital - Deferred share units (Details) - Deferred Share Unit [Member] | 9 Months Ended |
Sep. 30, 2020$ / sharesshares | |
Disclosure of classes of share capital [line items] | |
Number of options granted | shares | 44,623 |
Number of options outstanding, ending | shares | 44,623 |
Weighted average exercise price, Options granted | $ / shares | $ 4.51 |
Weighted average exercise price, Options outstanding, ending | $ / shares | $ 4.51 |
Share capital - Deferred shar_2
Share capital - Deferred share units Outstanding (Details) - Deferred Share Unit [Member] | 9 Months Ended |
Sep. 30, 2020$ / sharesshares | |
Disclosure of classes of share capital [line items] | |
Number Of Outstanding Share Option | 44,623 |
Deferred share unit Exercise Price Range One [Member] | |
Disclosure of classes of share capital [line items] | |
Options Outstanding Exercise Price | $ / shares | $ 3.41 |
Options Outstanding Weighted Average Contractual Life | 9 years 9 months 22 days |
Number Of Outstanding Share Option | 44,623 |
Number Of Shares Option Exercisable In Share Based Payment Arrangement | 44,623 |
Share capital - Restricted shar
Share capital - Restricted share units (Details) - Restricted Share Unit [Member] | 9 Months Ended |
Sep. 30, 2020$ / sharesshares | |
Disclosure of classes of share capital [line items] | |
Number Of Share Option Granted In Sharebased Payment Arrangement | shares | 507,849 |
Number of options outstanding, ending | shares | 507,849 |
Weighted Average Exercise Price Of Share Option Granted In Sharebased Payment Arrangement | $ / shares | $ 4.55 |
Weighted average exercise price, Options outstanding, ending | $ / shares | $ 4.55 |
Share capital - Restricted sh_2
Share capital - Restricted share units Outstanding (Details) - Restricted Share Unit [Member] | 9 Months Ended |
Sep. 30, 2020$ / sharesshares | |
Disclosure of classes of share capital [line items] | |
Number Of Outstanding Share Option | 507,849 |
Restricted share unit Exercise Price Range One [Member] | |
Disclosure of classes of share capital [line items] | |
Options Outstanding Exercise Price | $ / shares | $ 3.44 |
Options Outstanding Weighted Average Contractual Life | 9 years 9 months 22 days |
Number Of Outstanding Share Option | 507,849 |
Share capital - Additional Info
Share capital - Additional Information (Details) | Jul. 07, 2020$ / sharesshares | Jun. 25, 2020CAD ($)$ / sharesshares | Jun. 16, 2020CAD ($)$ / sharesshares | Jun. 10, 2020USD ($)$ / sharesshares | Jun. 10, 2020CAD ($)shares | Nov. 09, 2018shares | Aug. 13, 2020USD ($)shares | Aug. 13, 2020CAD ($)$ / sharesshares | Jul. 27, 2020USD ($)$ / sharesshares | Sep. 30, 2020CAD ($)shares | Sep. 29, 2020USD ($)$ / sharesshares | Jun. 30, 2020CAD ($)shares | Mar. 31, 2020CAD ($)shares | Sep. 30, 2019CAD ($)shares | Jun. 30, 2019CAD ($)shares | Mar. 31, 2019CAD ($)shares | Sep. 24, 2020USD ($)shares | Sep. 24, 2020CAD ($)shares | Sep. 30, 2020USD ($)$ / sharesshares | Sep. 30, 2020CAD ($)$ / sharesshares | Sep. 30, 2019USD ($)shares | Sep. 30, 2019CAD ($)shares | Jul. 13, 2020USD ($) | Mar. 27, 2020USD ($) | Dec. 31, 2019shares | Dec. 31, 2018shares |
Disclosure of classes of share capital [line items] | ||||||||||||||||||||||||||
Number of warrants exercised | 75,315 | |||||||||||||||||||||||||
Shares issued pursuant to exercise of warrants | $ | $ 9,027,860 | $ 150,000 | $ 145,153 | $ 4,657,266 | ||||||||||||||||||||||
Shares issued for stock option exercised | $ | $ 88,643 | 7,500 | 35,008 | |||||||||||||||||||||||
Weighted average number of common shares outstanding | 69,948,843 | 36,957,731 | 51,080,739 | 51,080,739 | 35,651,311 | 35,651,311 | ||||||||||||||||||||
Stock-based compensation expense | $ | $ 2,980,352 | $ 1,597,779 | $ 6,930,434 | $ 4,148,806 | ||||||||||||||||||||||
Increase (decrease) in number of shares outstanding | 28,517 | 25,000 | 187,500 | 4,250,000 | 1,274,000 | 1,274,000 | ||||||||||||||||||||
Share issued price | $ / shares | $ 3.20 | $ 0.30 | $ 0.80 | $ 2.56 | ||||||||||||||||||||||
Proceeds from issuing shares | $ 150,000 | $ 4,427,429 | $ 3,261,440 | |||||||||||||||||||||||
Share issue related cost | $ | 1,728,403 | $ 2,890,382 | $ 73,330 | 15,699 | $ 10,425 | |||||||||||||||||||||
Gross proceeds from exercise of options | $ | $ 7,500 | |||||||||||||||||||||||||
Number of common shares issued | 28,517 | 25,000 | 187,500 | 4,250,000 | 1,274,000 | 1,274,000 | ||||||||||||||||||||
Share Issued Price Per Share | $ / shares | $ 3.20 | $ 0.30 | $ 0.80 | $ 2.56 | ||||||||||||||||||||||
Number Of Warrants Exercised | 75,315 | |||||||||||||||||||||||||
Consultant [Member] | ||||||||||||||||||||||||||
Disclosure of classes of share capital [line items] | ||||||||||||||||||||||||||
Increase (decrease) in number of shares outstanding | 28,978,936 | 28,978,936 | ||||||||||||||||||||||||
Number of common shares issued | 28,978,936 | 28,978,936 | ||||||||||||||||||||||||
Investors One [Member] | Share transaction | ||||||||||||||||||||||||||
Disclosure of classes of share capital [line items] | ||||||||||||||||||||||||||
Increase (decrease) in number of shares outstanding | 135,171 | |||||||||||||||||||||||||
Proceeds from issuing shares | $ | $ 88,644 | |||||||||||||||||||||||||
Number of common shares issued | 135,171 | |||||||||||||||||||||||||
Investors One [Member] | Minimum [Member] | Share transaction | ||||||||||||||||||||||||||
Disclosure of classes of share capital [line items] | ||||||||||||||||||||||||||
Share issued price | $ / shares | $ 0.30 | |||||||||||||||||||||||||
Share Issued Price Per Share | $ / shares | 0.30 | |||||||||||||||||||||||||
Investors One [Member] | Maximum [Member] | Share transaction | ||||||||||||||||||||||||||
Disclosure of classes of share capital [line items] | ||||||||||||||||||||||||||
Share issued price | $ / shares | 2 | |||||||||||||||||||||||||
Share Issued Price Per Share | $ / shares | $ 2 | |||||||||||||||||||||||||
Investors [Member] | ||||||||||||||||||||||||||
Disclosure of classes of share capital [line items] | ||||||||||||||||||||||||||
Maximum aggregate offering price | $ | $ 59,500,000 | $ 30,000,000 | ||||||||||||||||||||||||
Increase (decrease) in number of shares outstanding | 10,000,000 | 10,000,000 | ||||||||||||||||||||||||
Number of common shares issued | 10,000,000 | 10,000,000 | ||||||||||||||||||||||||
Investors [Member] | Share transaction | ||||||||||||||||||||||||||
Disclosure of classes of share capital [line items] | ||||||||||||||||||||||||||
Increase (decrease) in number of shares outstanding | 111,250 | |||||||||||||||||||||||||
Proceeds from issuing shares | $ | $ 242,500 | |||||||||||||||||||||||||
Number of common shares issued | 111,250 | |||||||||||||||||||||||||
Investors [Member] | Minimum [Member] | Share transaction | ||||||||||||||||||||||||||
Disclosure of classes of share capital [line items] | ||||||||||||||||||||||||||
Share issued price | $ / shares | $ 2 | |||||||||||||||||||||||||
Share Issued Price Per Share | $ / shares | 2 | |||||||||||||||||||||||||
Investors [Member] | Maximum [Member] | Share transaction | ||||||||||||||||||||||||||
Disclosure of classes of share capital [line items] | ||||||||||||||||||||||||||
Share issued price | $ / shares | 4 | |||||||||||||||||||||||||
Share Issued Price Per Share | $ / shares | $ 4 | |||||||||||||||||||||||||
Employee Stock Options Exercise [Member] | ||||||||||||||||||||||||||
Disclosure of classes of share capital [line items] | ||||||||||||||||||||||||||
Share issue related cost | $ 1,350,000 | $ 1,834,286 | $ 2,857,829 | |||||||||||||||||||||||
Stock options | ||||||||||||||||||||||||||
Disclosure of classes of share capital [line items] | ||||||||||||||||||||||||||
Maximum number of common shares reserved for issuance | 30,000,000 | 30,000,000 | ||||||||||||||||||||||||
Stock options exercisable period | 10 years | 10 years | ||||||||||||||||||||||||
Weighted average share price, share options granted | (per share) | $ 2.16 | $ 1.83 | ||||||||||||||||||||||||
Restricted Share Unit [Member] | ||||||||||||||||||||||||||
Disclosure of classes of share capital [line items] | ||||||||||||||||||||||||||
Stock-based compensation expense | $ 361,295 | $ 6,364,974 | $ 0 | $ 4,148,806 | ||||||||||||||||||||||
Deferred Share Unit [Member] | ||||||||||||||||||||||||||
Disclosure of classes of share capital [line items] | ||||||||||||||||||||||||||
Stock-based compensation expense | $ 2,414,892 | $ 1,597,779 | $ 204,165 | $ 0 | ||||||||||||||||||||||
Share capital | ||||||||||||||||||||||||||
Disclosure of classes of share capital [line items] | ||||||||||||||||||||||||||
Number of shares issued | 77,789,748 | 77,789,748 | 77,789,748 | 37,049,374 | ||||||||||||||||||||||
Number of shares outstanding | 77,789,748 | 63,182,739 | 37,056,874 | 36,952,820 | 36,959,810 | 36,804,997 | 77,789,748 | 77,789,748 | 36,952,820 | 36,952,820 | 37,049,374 | 32,332,343 | ||||||||||||||
Shares issued pursuant to exercise of warrants | $ | $ 9,103,980 | $ 150,000 | $ 145,153 | $ 4,657,266 | ||||||||||||||||||||||
Number of shares issued for stock option exercised | 135,171 | 25,000 | 43,760 | |||||||||||||||||||||||
Shares issued for stock option exercised | $ | $ 126,867 | $ 13,004 | $ 47,539 | |||||||||||||||||||||||
Share issued price | $ / shares | $ 2 | |||||||||||||||||||||||||
Proceeds from issuing shares | $ 20,000,000 | $ 27,174,615 | $ 59,499,999 | $ 79,824,390 | ||||||||||||||||||||||
Share issue related cost | $ | $ 1,728,403 | $ 2,890,382 | $ 73,330 | $ 15,699 | $ 10,425 | |||||||||||||||||||||
Share Issued Price Per Share | $ / shares | $ 2 |
General and administrative ex_3
General and administrative expenses (Details) - CAD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
General and administrative expenses | ||||
Rent | $ 200,420 | $ 87,777 | $ 407,785 | $ 283,261 |
Office expenses | 417,002 | 407,095 | 1,190,088 | 1,181,434 |
Legal and professional | 613,028 | 522,183 | 1,813,039 | 1,343,885 |
Consulting fees | 271,259 | 535,303 | 1,045,137 | 1,373,906 |
Investor relations | 76,398 | 53,112 | 296,249 | 261,814 |
Salaries | 879,755 | 718,388 | 2,063,331 | 1,383,896 |
General and administrative expenses | $ 2,457,862 | $ 2,323,858 | $ 6,815,629 | $ 5,828,196 |
Research and development expe_3
Research and development expenses (Details) - CAD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Research and development expenses | ||||
Labour | $ 1,469,492 | $ 1,265,310 | $ 3,927,296 | $ 3,606,535 |
Materials | 583,874 | 2,003,246 | 1,572,734 | 3,602,274 |
Government grants | (1,800) | (382,993) | ||
Research and development expenses | $ 2,053,366 | $ 3,266,756 | $ 5,500,030 | $ 6,825,816 |
Sales and marketing expenses (D
Sales and marketing expenses (Details) - CAD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Sales and marketing expenses | ||||
Consulting | $ 79,930 | $ 40,921 | $ 340,345 | $ 264,750 |
Marketing | 287,073 | 153,111 | 464,249 | 441,254 |
Salaries | 333,229 | 258,776 | 657,921 | 559,342 |
Total sales and marketing expenses | $ 700,232 | $ 452,808 | $ 1,462,515 | $ 1,265,346 |
Other Income (Details)
Other Income (Details) - CAD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Paycheck Protection Program Loan | ||||
Other Income | ||||
Other income | $ 185,284 | |||
Industrial Research Assistance Program Funding | ||||
Other Income | ||||
Other income | 243,936 | |||
Canada Emergency Wage Subsidy | ||||
Other Income | ||||
Other income | $ 27,127 | 106,961 | ||
Miscellaneous income | ||||
Other Income | ||||
Other income | $ 17,711 | $ 10,141 | $ 71,639 |
Other Income - Additional Infor
Other Income - Additional Information (Details) | May 21, 2020USD ($)item | Sep. 30, 2020CAD ($) | Sep. 30, 2020CAD ($) |
Paycheck Protection Program Loan | |||
Other income | |||
Borrowings | $ 133,700 | ||
Loan bears interest | 1.00% | ||
Loan matures | 24 months | ||
Payments of principal and interest on monthly | item | 18 | ||
Industrial Research Assistance Program Funding | |||
Other income | |||
Other income | $ 243,936 | ||
Canada Emergency Wage Subsidy | |||
Other income | |||
Other income | $ 27,127 | $ 106,961 |
Segmented information (Details)
Segmented information (Details) - CAD ($) | 3 Months Ended | 9 Months Ended | |||||||
Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | |
Disclosure of operating segments [line items] | |||||||||
Revenues | $ 327,285 | $ 200,068 | $ 460,774 | $ 461,334 | |||||
Gross Profit/(loss) | 10,201 | 65,598 | (62,227) | 64,060 | |||||
Operating expenses | 8,783,869 | 7,870,707 | 21,745,852 | 19,073,592 | |||||
Current income tax recovery | (1,604) | (528) | 2,140 | ||||||
Deferred income tax recovery | (11,330) | (6,894) | (38,605) | (56,069) | |||||
Net loss/(income) | (14,891,853) | (5,333,621) | (29,736,379) | (22,682,124) | |||||
FX translation | (1,372,059) | 186,848 | (868,028) | (479,721) | |||||
Comprehensive loss/(income) | (14,804,072) | $ (12,804,677) | $ (2,167,302) | (5,347,878) | $ 3,303,266 | $ (20,627,182) | (29,776,051) | (22,671,794) | |
Inventory | 1,376,408 | 1,376,408 | $ 750,151 | ||||||
Plant and equipment | 11,672,818 | 11,672,818 | 9,990,542 | ||||||
Electric Vehicles | |||||||||
Disclosure of operating segments [line items] | |||||||||
Revenues | 0 | ||||||||
Gross Profit/(loss) | 0 | ||||||||
Operating expenses | 8,701,493 | 7,742,592 | 21,540,426 | 18,753,216 | |||||
Other items | 6,195,203 | (2,475,303) | 8,164,157 | 3,713,023 | |||||
Current income tax recovery | (129) | 0 | 947 | 2,140 | |||||
Deferred income tax recovery | 0 | ||||||||
Net loss/(income) | 14,896,567 | 5,267,289 | 29,705,530 | 22,468,379 | |||||
FX translation | (87,781) | 14,257 | 39,672 | (10,330) | |||||
Comprehensive loss/(income) | 14,808,786 | 5,281,546 | 29,745,202 | 22,458,049 | |||||
Inventory | 836,959 | 836,959 | 307,225 | ||||||
Plant and equipment | 11,307,260 | 11,307,260 | 9,580,326 | ||||||
Custom Built Vehicles | |||||||||
Disclosure of operating segments [line items] | |||||||||
Revenues | 327,285 | 200,068 | 460,774 | 461,334 | |||||
Gross Profit/(loss) | 10,201 | 65,598 | (62,227) | 64,060 | |||||
Operating expenses | 82,376 | 128,115 | 205,426 | 320,376 | |||||
Other items | (64,084) | 10,709 | (196,724) | 13,498 | |||||
Current income tax recovery | (1,475) | 0 | (1,475) | ||||||
Deferred income tax recovery | (11,330) | (6,894) | (38,605) | (56,069) | |||||
Net loss/(income) | (4,714) | 66,332 | 30,849 | 213,745 | |||||
FX translation | 0 | ||||||||
Comprehensive loss/(income) | (4,714) | $ 66,332 | 30,849 | $ 213,745 | |||||
Inventory | 539,449 | 539,449 | 442,926 | ||||||
Plant and equipment | $ 365,558 | $ 365,558 | $ 410,216 |
Segmented information - Additio
Segmented information - Additional Information (Details) | 9 Months Ended |
Sep. 30, 2020segment | |
Segmented information | |
Number of reportable business segments | 2 |
Related party transactions - Am
Related party transactions - Amounts due to related parties (Details) - CAD ($) | Sep. 30, 2020 | Dec. 31, 2019 |
Disclosure of transactions between related parties [line items] | ||
Amounts due to related parties | $ 398 | $ 277,588 |
Shareholder loan | ||
Disclosure of transactions between related parties [line items] | ||
Amounts due to related parties | 0 | 2,076 |
Due to related parties | ||
Disclosure of transactions between related parties [line items] | ||
Amounts due to related parties | $ 398 | $ 275,512 |
Related party transactions-Key
Related party transactions-Key management personnel compensation (Details) - CAD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Related party transactions | ||||
Consulting fees | $ 137,569 | $ 125,004 | $ 382,701 | |
Salaries | $ 417,675 | 217,017 | 1,022,440 | 515,684 |
Directors fees | 86,729 | 135,723 | 335,645 | 296,201 |
Stock-based compensation | 1,510,041 | 1,372,613 | 5,351,490 | 3,328,759 |
Key management personnel compensation | $ 2,014,445 | $ 1,862,922 | $ 6,834,579 | $ 4,523,345 |
Financial instruments and fin_3
Financial instruments and financial risk management - Analysis of the contractual maturities (Details) | Sep. 30, 2020CAD ($) |
Less than one year | |
Financial instruments and financial risk management | |
Total non-derivative financial liabilities | $ 2,533,284 |
Between one and five years | |
Financial instruments and financial risk management | |
Total non-derivative financial liabilities | 0 |
More than five years | |
Financial instruments and financial risk management | |
Total non-derivative financial liabilities | 0 |
Trade payables and accrued liabilities | Less than one year | |
Financial instruments and financial risk management | |
Total non-derivative financial liabilities | 499,925 |
Trade payables and accrued liabilities | Between one and five years | |
Financial instruments and financial risk management | |
Total non-derivative financial liabilities | 0 |
Trade payables and accrued liabilities | More than five years | |
Financial instruments and financial risk management | |
Total non-derivative financial liabilities | 0 |
Accrued liabilities | Less than one year | |
Financial instruments and financial risk management | |
Total non-derivative financial liabilities | 2,032,961 |
Accrued liabilities | Between one and five years | |
Financial instruments and financial risk management | |
Total non-derivative financial liabilities | 0 |
Accrued liabilities | More than five years | |
Financial instruments and financial risk management | |
Total non-derivative financial liabilities | 0 |
Due to related parties | Less than one year | |
Financial instruments and financial risk management | |
Total non-derivative financial liabilities | 398 |
Due to related parties | Between one and five years | |
Financial instruments and financial risk management | |
Total non-derivative financial liabilities | 0 |
Due to related parties | More than five years | |
Financial instruments and financial risk management | |
Total non-derivative financial liabilities | 0 |
Shareholder loan | Less than one year | |
Financial instruments and financial risk management | |
Total non-derivative financial liabilities | 0 |
Shareholder loan | Between one and five years | |
Financial instruments and financial risk management | |
Total non-derivative financial liabilities | 0 |
Shareholder loan | More than five years | |
Financial instruments and financial risk management | |
Total non-derivative financial liabilities | $ 0 |
Financial instruments and fin_4
Financial instruments and financial risk management - Statement of financial position (Details) - CAD ($) | Sep. 30, 2020 | Dec. 31, 2019 |
Financial instruments and financial risk management | ||
Financial assets and liabilities | $ 98,203,025 | $ 10,724,090 |
Cash and cash equivalents | ||
Financial instruments and financial risk management | ||
Financial assets and liabilities | 100,062,788 | 10,555,007 |
Restricted cash | ||
Financial instruments and financial risk management | ||
Financial assets and liabilities | 84,031 | 81,981 |
Trade receivable | ||
Financial instruments and financial risk management | ||
Financial assets and liabilities | 136,606 | 192,998 |
Trade payables and accrued liabilities | ||
Financial instruments and financial risk management | ||
Financial assets and liabilities | $ (2,080,400) | $ (105,896) |
Financial instruments and fin_5
Financial instruments and financial risk management - Financial liabilities (Details) - CAD ($) | Sep. 30, 2020 | Dec. 31, 2019 |
Financial instruments and financial risk management | ||
Financial assets | $ 101,426,912 | $ 11,424,553 |
Financial liabilities | 13,006,415 | 9,202,436 |
Cash and cash equivalents | ||
Financial instruments and financial risk management | ||
Financial assets | 101,054,943 | 11,095,848 |
Restricted cash | ||
Financial instruments and financial risk management | ||
Financial assets | 186,570 | 184,314 |
Receivables | ||
Financial instruments and financial risk management | ||
Financial assets | 185,399 | 144,391 |
Non-derivative financial liabilities | Trade payable and accrued liabilities | ||
Financial instruments and financial risk management | ||
Financial liabilities | 2,533,284 | 2,128,226 |
Non-derivative financial liabilities | Shareholder loan | ||
Financial instruments and financial risk management | ||
Financial liabilities | 0 | 2,076 |
Derivative financial liabilities | Derivative liability | ||
Financial instruments and financial risk management | ||
Financial liabilities | $ 10,473,131 | $ 7,072,134 |
Financial instruments and fin_6
Financial instruments and financial risk management - Additional information (Details) - CAD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Disclosure of risk management strategy related to hedge accounting [line items] | ||||
Impact of net loss | $ (1,372,059) | $ 186,848 | $ (868,028) | $ (479,721) |
Percentage of volatility used was increased | 10.00% | |||
Derivative liability | $ 412,330 | $ 544,540 | $ 412,330 | 544,540 |
Interest rate risk | ||||
Disclosure of risk management strategy related to hedge accounting [line items] | ||||
Impact of net loss | $ 830,344 | 139,130 | ||
Change in market interest rates | 1.00% | |||
Foreign exchange risk | ||||
Disclosure of risk management strategy related to hedge accounting [line items] | ||||
Change in the US dollars to Canadian dollar exchange rate | 10.00% | |||
Impact of net loss | $ 9,820,302 | $ 1,489,014 |
Lease commitments (Details)
Lease commitments (Details) - CAD ($) | Sep. 30, 2020 | Jun. 30, 2020 |
Disclosure of maturity analysis of lease payments [line items] | ||
Total | $ 1,558,032 | |
Lease commitments | ||
Disclosure of maturity analysis of lease payments [line items] | ||
Total | $ 1,229,322 | |
Less than one year | ||
Disclosure of maturity analysis of lease payments [line items] | ||
Total | 744,541 | |
Less than one year | Lease commitments | ||
Disclosure of maturity analysis of lease payments [line items] | ||
Total | 132,950 | |
2021 | Lease commitments | ||
Disclosure of maturity analysis of lease payments [line items] | ||
Total | 296,121 | |
2022 | Lease commitments | ||
Disclosure of maturity analysis of lease payments [line items] | ||
Total | 191,712 | |
2023 | Lease commitments | ||
Disclosure of maturity analysis of lease payments [line items] | ||
Total | 186,975 | |
2024 and later | Lease commitments | ||
Disclosure of maturity analysis of lease payments [line items] | ||
Total | $ 421,564 |
Lease commitments - Additional
Lease commitments - Additional information (Details) | Oct. 01, 2020USD ($)$ / sharesshares | Oct. 01, 2020CAD ($)$ / sharesshares | Jul. 07, 2020$ / sharesshares | Jun. 25, 2020CAD ($)$ / sharesshares | Jun. 16, 2020CAD ($)$ / sharesshares | Jun. 10, 2020shares | Nov. 09, 2018shares | Aug. 13, 2020USD ($)shares | Aug. 13, 2020CAD ($)$ / sharesshares | Jul. 27, 2020USD ($)shares | Sep. 30, 2020CAD ($) | Sep. 29, 2020USD ($)shares | Jun. 30, 2020CAD ($) | Mar. 31, 2020CAD ($) | Sep. 30, 2019CAD ($) | Jun. 30, 2019CAD ($) | Jul. 13, 2020USD ($) | Mar. 27, 2020USD ($) |
Disclosure of non-adjusting events after reporting period [line items] | ||||||||||||||||||
Number of common shares issued | shares | 28,517 | 25,000 | 187,500 | 4,250,000 | 1,274,000 | 1,274,000 | ||||||||||||
Share issued price | $ / shares | $ 3.20 | $ 0.30 | $ 0.80 | $ 2.56 | ||||||||||||||
Number Of Warrants Exercised | shares | 75,315 | |||||||||||||||||
Gross proceeds from issuance | $ 150,000 | $ 4,427,429 | $ 3,261,440 | |||||||||||||||
Gross proceeds from exercise of options | $ | $ 7,500 | |||||||||||||||||
Share issuance costs and fees | $ | $ 1,728,403 | $ 2,890,382 | $ 73,330 | $ 15,699 | $ 10,425 | |||||||||||||
Investors [Member] | ||||||||||||||||||
Disclosure of non-adjusting events after reporting period [line items] | ||||||||||||||||||
Maximum aggregate offering price | $ | $ 59,500,000 | $ 30,000,000 | ||||||||||||||||
Number of common shares issued | shares | 10,000,000 | |||||||||||||||||
Share transaction | Investors [Member] | ||||||||||||||||||
Disclosure of non-adjusting events after reporting period [line items] | ||||||||||||||||||
Number of common shares issued | shares | 111,250 | |||||||||||||||||
Gross proceeds from issuance | $ | $ 242,500 | |||||||||||||||||
Share transaction | Investors One [Member] | ||||||||||||||||||
Disclosure of non-adjusting events after reporting period [line items] | ||||||||||||||||||
Number of common shares issued | shares | 135,171 | |||||||||||||||||
Gross proceeds from issuance | $ | $ 88,644 | |||||||||||||||||
Share transaction | Subsequent Event [Member] | ||||||||||||||||||
Disclosure of non-adjusting events after reporting period [line items] | ||||||||||||||||||
Number of common shares issued | shares | 98,750 | 98,750 | ||||||||||||||||
Share issued price | $ / shares | $ 2 | |||||||||||||||||
Gross proceeds from issuance | $ | $ 197,500 | |||||||||||||||||
Share transaction | Subsequent Event [Member] | Investors [Member] | ||||||||||||||||||
Disclosure of non-adjusting events after reporting period [line items] | ||||||||||||||||||
Number of common shares issued | shares | 77,500 | 77,500 | ||||||||||||||||
Gross proceeds from exercise of options | $ | $ 58,750 | |||||||||||||||||
Share transaction | Subsequent Event [Member] | Investors [Member] | Minimum | ||||||||||||||||||
Disclosure of non-adjusting events after reporting period [line items] | ||||||||||||||||||
Share issued price | $ / shares | $ 0.30 | |||||||||||||||||
Share transaction | Subsequent Event [Member] | Investors [Member] | Maximum | ||||||||||||||||||
Disclosure of non-adjusting events after reporting period [line items] | ||||||||||||||||||
Share issued price | $ / shares | $ 2 |