Document and Entity Information
Document and Entity Information - shares | 12 Months Ended | |
Dec. 31, 2018 | Mar. 29, 2019 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | ELECTRAMECCANICA VEHICLES CORP. | |
Entity Central Index Key | 0001637736 | |
Trading Symbol | solo | |
Amendment Flag | false | |
Document Fiscal Period Focus | FY | |
Current Fiscal Year End Date | --12-31 | |
Document Type | 20-F | |
Document Period End Date | Dec. 31, 2018 | |
Document Fiscal Year Focus | 2018 | |
Entity Well-known Seasoned Issuer | No | |
Entity Voluntary Filers | No | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Common Stock, Shares Outstanding | 32,332,343 | |
Entity Emerging Growth Company | true | |
Entity Ex Transition Period | false | |
Entity Shell Company | false |
Consolidated Statements of Fina
Consolidated Statements of Financial Position - CAD ($) | Dec. 31, 2018 | Dec. 31, 2017 | |
Current assets | |||
Cash and cash equivalents (Note 4) | $ 18,926,933 | $ 8,610,996 | |
Receivables (Note 5) | 1,190,689 | 243,639 | |
Prepaid expenses | 2,268,776 | 920,146 | |
Inventory | 420,737 | 232,903 | |
Current assets | 22,807,135 | 10,007,684 | |
Non-current assets | |||
Restricted cash | 110,707 | ||
Plant and equipment (Note 6) | 5,323,766 | 1,393,683 | |
Goodwill and other intangible assets (Note 7) | 1,239,123 | 1,260,014 | |
TOTAL ASSETS | 29,480,731 | 12,661,381 | |
Current liabilities | |||
Bank overdraft and demand loan | 123,637 | ||
Trade payables and accrued liabilities (Note 8) | 1,262,861 | 1,123,790 | |
Customer deposits | 303,076 | 362,829 | |
Construction contract liability | 99,707 | 84,242 | |
Shareholder loan | 6,230 | 10,383 | |
Promissory note (Note 7) | 1,500,000 | ||
Deferred income tax (Note 7) | 149,794 | 149,794 | |
Total Current Liabilities | 1,821,668 | 3,354,675 | |
Non-current liabilities | |||
Derivative liability (Note 11) | [1] | 4,752,875 | 3,655,690 |
TOTAL LIABILITIES | 6,574,543 | 7,010,365 | |
EQUITY | |||
Share capital (Note 12) | 46,622,299 | 22,718,282 | |
Common share subscription | 750,000 | ||
Deficit | (31,373,697) | (21,335,552) | |
Reserves | 7,657,586 | 3,518,286 | |
TOTAL EQUITY | 22,906,188 | 5,651,016 | |
TOTAL LIABILITIES AND EQUITY | $ 29,480,731 | $ 12,661,381 | |
[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 11. |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Loss - CAD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Profit or loss [Abstract] | |||
Revenue | $ 777,302 | $ 109,173 | |
Cost of revenue | 575,172 | 63,950 | |
Gross profit | 202,130 | 45,223 | |
Operating expenses | |||
Amortization (Note 6) | 278,621 | 124,134 | $ 22,567 |
General and administrative expenses (Note 14) | 5,490,938 | 2,373,251 | 1,205,835 |
Research and development expenses (Note 15) | 5,566,036 | 4,430,386 | 2,778,295 |
Sales and marketing expenses (Note 16) | 1,386,901 | 631,381 | 209,455 |
Stock-based compensation expense (Note 12) | 3,228,508 | 889,511 | 1,461,189 |
Share-based payment expense (Note 13) | 1,109,531 | 1,085,716 | 3,264,681 |
Operating expenses | (17,060,535) | (9,534,379) | (8,942,022) |
Loss before other items | (16,858,405) | (9,489,156) | (8,942,022) |
Other items | |||
Accretion interest expense | 69,562 | 25,908 | |
Changes in fair value of warrant derivative (Note 11) | (7,707,051) | 186,269 | |
Finder's fee on convertible loan | 258,542 | ||
Impairment of goodwill (Note 7) | 1,342,794 | ||
Issue costs allocated to derivative liability (Note 11) | 1,493,554 | ||
Foreign exchange loss (gain) | (605,096) | 20,049 | 5,417 |
Loss before taxes | (10,039,812) | (11,366,372) | (8,973,347) |
Income tax recovery | (1,667) | ||
Net loss | (10,038,145) | (11,366,372) | (8,973,347) |
Other comprehensive loss - foreign currency translation | (10,005) | ||
Comprehensive Loss | $ (10,048,150) | $ (11,366,372) | $ (8,973,347) |
Loss per share - basic and fully diluted (in dollars per share) | $ (0.38) | $ (0.52) | $ (0.55) |
Weighted average number of shares outstanding - basic and fully diluted (in shares) (Note 12) | 26,582,664 | 21,818,315 | 16,342,434 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Equity - CAD ($) | Share capital | Share subscription | Share-based payment reserve | Equity component reserve | Foreign Currency Translation Reserve | Deficit | Total |
Beginning balance at Dec. 31, 2015 | $ 458,520 | $ 50,000 | $ 354,015 | $ (995,833) | $ (133,298) | ||
Beginning balance, shares at Dec. 31, 2015 | 13,391,813 | ||||||
Shares issued for cash (Note 12) | $ 6,771,033 | 6,771,033 | |||||
Shares issued for cash, shares (Note 12) | 6,787,600 | ||||||
Share issued for finders fees (Note 12) | $ 823,512 | 519,088 | 1,342,600 | ||||
Share issued for finders fees, shares (Note 12) | 636,756 | ||||||
Shares issued for convertible debt issue cost | $ 26,250 | 16,852 | 43,102 | ||||
Shares issued for convertible debt issue cost, shares | 13,125 | ||||||
Stock-based compensation (Note 12, 13) | 1,461,189 | 1,461,189 | |||||
Share subscription (Note 13) | $ (10,000) | 51,500 | 41,500 | ||||
Equity component of convertible loan | $ 39,130 | 39,130 | |||||
Share issued to settle debt | $ 50,000 | 50,000 | |||||
Share issued to settle debt, shares | 62,500 | ||||||
Share-based payment | $ 3,264,681 | 3,264,681 | |||||
Net loss for the year | (8,973,347) | (8,973,347) | |||||
Ending balance at Dec. 31, 2016 | $ 11,383,996 | 101,500 | 2,351,144 | 39,130 | (9,969,180) | 3,906,590 | |
Ending balance, shares at Dec. 31, 2016 | 20,891,794 | ||||||
Shares issued for cash (Note 12) | $ 10,640,866 | (101,500) | 10,539,366 | ||||
Shares issued for cash, shares (Note 12) | 1,910,250 | ||||||
Share issued for finders fees (Note 12) | $ 709,522 | 3,223 | 712,745 | ||||
Share issued for finders fees, shares (Note 12) | 107,005 | ||||||
Shares issued for convertible debt issue cost | 130,439 | 130,439 | |||||
Adjustment for warrant derivative liability | $ (2,410,255) | (2,410,255) | |||||
Shares issued upon conversion of convertible debt | $ 1,657,845 | $ (169,569) | 1,488,276 | ||||
Shares issued upon conversion of convertible debt, shares | 810,057 | ||||||
Shares and warrants issued to services (Note 12) | $ 811,308 | 274,408 | 1,085,716 | ||||
Shares and warrants issued to services, shares (Note 12) | 75,000 | ||||||
Stock-based compensation (Note 12, 13) | 889,511 | 889,511 | |||||
Share subscription (Note 13) | (75,000) | 750,000 | 675,000 | ||||
Net loss for the year | (11,366,372) | (11,366,372) | |||||
Ending balance at Dec. 31, 2017 | $ 22,718,282 | 750,000 | 3,518,286 | (21,335,552) | 5,651,016 | ||
Ending balance, shares at Dec. 31, 2017 | 23,794,106 | ||||||
Shares issued for cash, net of derivative liability (Note 12) | $ 21,175,610 | $ (750,000) | 940,071 | 21,365,681 | |||
Shares issued for cash, net of derivative liability, shares (Note 12) | 8,028,521 | ||||||
Shares issued for cash (Note 12) | $ 24,091,775 | ||||||
Share issued for finders fees (Note 12) | $ 23,678 | 23,678 | |||||
Share issued for finders fees, shares (Note 12) | 2,286 | ||||||
Shares issued pursuant to exercise of warrants | $ 1,639,449 | 1,639,449 | |||||
Shares issued pursuant to exercise of warrants, shares | 294,232 | ||||||
Shares issued for stock option exercised (Note 12, 13) | $ 31,669 | (19,274) | 12,395 | ||||
Shares issued for stock option exercised, shares (Note 12, 13) | 6,198 | ||||||
Shares issued for services (Note 12) | $ 1,033,611 | 1,033,611 | |||||
Shares issued for services, shares (Note 12) | 207,000 | ||||||
Stock-based compensation (Note 12, 13) | 3,228,508 | 3,228,508 | |||||
Net loss for the year | (10,038,145) | (10,038,145) | |||||
Foreign currency translation reserve | $ (10,005) | (10,005) | |||||
Ending balance at Dec. 31, 2018 | $ 46,622,299 | $ 7,667,591 | $ (10,005) | $ (31,373,697) | $ 22,906,188 | ||
Ending balance, shares at Dec. 31, 2018 | 32,332,343 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - CAD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Operating activities | |||
Loss for the year | $ (10,038,145) | $ (11,366,372) | $ (8,973,347) |
Adjustments for: | |||
Amortization | 278,621 | 124,134 | 22,567 |
Stock-based compensation expense | 3,228,508 | 889,511 | 1,461,189 |
Share-based payment expense | 1,109,531 | 1,085,716 | 3,264,681 |
Accretion interest expense | 69,562 | 25,908 | |
Finder's fee on convertible loan | 258,542 | ||
Impairment of goodwill | 1,342,794 | ||
Impairment of trademark and patents | 19,174 | ||
Changes in fair value of warrant derivative | (7,707,051) | 186,269 | |
Changes in non-cash working capital items: | |||
Receivables | (946,552) | 93,210 | (242,645) |
Prepaid expenses | (1,343,745) | (657,713) | (202,238) |
Inventory | (183,444) | (44,092) | 14,966 |
Trade payables and accrued liabilities | 62,975 | 568,850 | 325,090 |
Customer deposits | (44,288) | 110,335 | 140,994 |
Net cash flows used in operating activities | (15,583,590) | (7,320,080) | (4,162,835) |
Investing activities | |||
Restricted cash | (110,707) | ||
Expenditures on plant and equipment | (4,172,700) | (1,264,265) | (232,027) |
Purchase of Intermeccanica International Inc. | (900,000) | (100,000) | |
Cash received on business combination | 59,449 | ||
Expenditures on intangible assets | (8,042) | (25,345) | |
Net cash flows used in investing activities | (4,291,449) | (2,104,816) | (357,372) |
Financing activities | |||
Proceeds from bank loans | 0 | 123,637 | 0 |
Repayment of bank loan | (123,637) | ||
Proceeds from convertible loans | 2,441,225 | 300,000 | |
Repayment of shareholder loans | (4,153) | (33,155) | (135,000) |
Repayment of promissory note | (1,500,000) | ||
Proceeds from share subscription | 750,000 | 101,500 | |
Proceeds on issuance of common shares - net of issue costs | 31,845,439 | 10,837,902 | 8,063,633 |
Net cash flows from financing activities | 30,217,649 | 14,119,609 | 8,330,133 |
Increase in cash and cash equivalents | 10,342,610 | 4,694,713 | 3,809,926 |
Effect of exchange rate changes on cash | (26,673) | ||
Cash and cash equivalents, beginning | 8,610,996 | 3,916,283 | 106,357 |
Cash and cash equivalents, ending | $ 18,926,933 | 8,610,996 | $ 3,916,283 |
Non-cash financing and investing transactions: | |||
Issuance of promissory note for acquisition of Intermeccanica | $ 1,500,000 |
Nature and continuance of opera
Nature and continuance of operations | 12 Months Ended |
Dec. 31, 2018 | |
Nature and Continuance of Operations [Abstract] | |
Nature and continuance of operations | 1. Nature and continuance of operations 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. The Company acquired Intermeccanica International Inc. (“Intermeccanica”) on October 18, 2017 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. The head office and principal address of the Company are located at 102 East 1 st 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. As at December 31, 2018, the Company’s principal activity, the development and manufacture of electric vehicles, is in the development stage, and the Company’s continuation as a going concern is dependent upon the successful results from its electric vehicle development and 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. It is anticipated that significant additional funding will be required. These factors indicate the existence of a material uncertainty that may cast significant doubt about the Company’s ability to continue as a going concern. |
Significant accounting policies
Significant accounting policies and basis of preparation | 12 Months Ended |
Dec. 31, 2018 | |
Significant Accounting Policies and Basis of Preparation [Abstract] | |
Significant accounting policies and basis of preparation | 2. Significant accounting policies and basis of preparation The financial statements were authorized for issue on March 29, 2019 by the directors of the Company. Statement of compliance with International Financial Reporting Standards These consolidated financial statements have been prepared in accordance with International Financial Reporting Standards (“IFRS”), as issued by the International Accounting Standards Board (“IASB”) and including interpretations of the International Financial Reporting Interpretations Committee (“IFRIC”) as applicable to the preparation of annual financial statements. These consolidated financial statements were prepared using the same accounting policies and methods as those used in the Company’s consolidated financial statements for the year ended December 31, 2017, with the exception of new accounting policies that were adopted on January 1, 2018 as described in this Note. Basis of preparation The financial statements of the Company have been prepared on an accrual basis and are based on historical costs, modified where applicable. 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. and Intermeccanica from the date of its acquisition on October 18, 2017 (Note 7). 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 fair value of the identifiable assets and liabilities acquired from Intermeccanica, the estimated recoverable amount of goodwill, intangible assets and other long-lived assets, the useful lives of plant and equipment, the estimated amount of scientific research and experimental development (SR&ED) tax credits, fair value measurements for financial instruments and share-based payments, and the recoverability and measurement of deferred tax assets. 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 judgments in applying the Company’s 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 policy - Financial Instruments The Company adopted the requirements of IFRS 9 Financial Instruments (“IFRS 9”) as of January 1, 2018. IFRS 9 replaces IAS 39 Financial Instruments: Recognition and Measurement (“IAS 39”). IFRS 9 utilizes a revised model for recognition and measurement of financial instruments and a single, forward-looking “expected loss” impairment model. Most of the requirements in IAS 39 for classification and measurement of financial liabilities were carried forward in IFRS 9, so the Company’s accounting policy with respect to its financial liabilities is unchanged. As a result of the adoption of IFRS 9, management has retrospectively changed its accounting policy for financial assets, for assets that continued to be recognized at the date of initial application. The change did not impact the carrying value of any financial assets or financial liabilities on the transition date. The following is the Company’s new accounting policy for financial instruments under IFRS 9: The Company classifies its financial instruments in the following categories: at fair value through profit or loss (“FVTPL”), at fair value through other comprehensive income (loss) (“FVTOCI”) or at amortized cost. The Company determines the classification of financial assets at initial recognition. The classification of debt instruments is driven by the Company’s business model for managing the financial assets and their contractual cash flow characteristics. Equity instruments that are held for trading are classified as FVTPL. For other equity instruments, on the day of acquisition the Company can make an irrevocable election (on an instrument-by-instrument basis) to designate them as at FVTOCI. Financial liabilities are measured at amortized cost, unless they are required to be measured at FVTPL (such as instruments held for trading or derivatives) or if the Company has opted to measure them at FVTPL. The Company completed a detailed assessment of its financial assets and liabilities as at January 1, 2018. The following table shows the original classification under IAS 39 and the new classification under IFRS 9: Financial assets/liabilities Original classification IAS 39 New classification IFRS 9 Cash and cash equivalents Loans and Receivables Amortized cost Receivables Loans and Receivables Amortized cost Trade payables and accrued liabilities Other financial liabilities Amortized cost Shareholder loan Other financial liabilities Amortized cost Bank overdraft and demand loan Other financial liabilities Amortized cost Derivative liability FVTPL FVTPL There is no impact on amounts previously recognized on adoption of IFRS 9 on January 1, 2018. No change to previously presented financial statements were required Financial assets and liabilities at amortized cost are initially recognized at fair value plus or minus transaction costs, respectively, and subsequently carried at amortized cost less any impairment. Financial assets and liabilities carried at FVTPL are initially recorded at fair value and transaction costs are expensed in the consolidated statements of comprehensive loss. Realized and unrealized gains and losses arising from changes in the fair value of the financial assets and liabilities held at FVTPL are included in the consolidated statements of comprehensive loss in the period in which they arise. The Company recognizes a loss allowance for expected credit losses on financial assets that are measured at amortized cost. At each reporting date, the Company measures the loss allowance for the financial asset at an amount equal to the lifetime expected credit losses if the credit risk on the financial asset has increased significantly since initial recognition. If at the reporting date, the financial asset has not increased significantly since initial recognition, the Company measures the loss allowance for the financial asset at an amount equal to the twelve month expected credit losses. The Company shall recognize in the consolidated statements of comprehensive loss, as an impairment gain or loss, the amount of expected credit losses (or reversal) that is required to adjust the loss allowance at the reporting date to the amount that is required to be recognized. The Company derecognizes financial assets only when the contractual rights to cash flows from the financial assets expire, or when it transfers the financial assets and substantially all of the associated risks and rewards of ownership to another entity. Gains and losses on derecognition are generally recognized in the consolidated statements of comprehensive loss. Changes in Accounting Policies – Revenue from contracts with customers The Company adopted all of the requirements of IFRS 15 Revenue from Contracts with Customers (“IFRS 15”) as of January 1, 2018. IFRS 15 utilizes a methodical framework for entities to follow in order to recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods and services. The change did not impact the cumulative revenue recognized on contracts in progress or the related assets and liabilities on the transition date. The following is the Company’s new accounting policy for revenue from contracts with customers under IFRS 15, which is not materially different than its previous accounting policy: Revenue is recognized to the extent that the amount of revenue can be measured reliably and collection is probable . Part sales: Sales of parts are recognized when the Company has transferred control to the customer which generally occurs upon shipment. Services, repairs and support services: Services, repairs and support services are recognized in the accounting period when the services are rendered. Sales of custom build vehicles: The Company manufactures and sells custom built vehicles typically on fixed fee arrangements with its customers. Revenue is recognized in the accounting period in which the services are rendered, by reference to the stage of completion. The stage of completion is determined as a percentage based on the amount of costs incurred compared to the estimated cost of completion. Revenue recognized in excess of amounts billed is recorded as accounts receivable. Amounts received in excess of work performed is recorded as deferred revenue. Sales of electric vehicles: The Company will be manufacturing and selling an electric powered one-seater vehicle which has not yet been commercialized. At this time, proceeds of these sales are considered to be incidental revenue and are not being made with the expectation of profit. These are sold to ‘beta’ customers who provide real-world testing and feedback on the vehicles. The revenue generated from sales are recorded against research & development expenses. Cash and cash equivalents Cash and cash equivalents include cash and short-term investments with original maturities of less than 90 days and are presented at cost, which approximates market value. Customer deposits Customer deposits consist primarily of advance payments and billings in excess of costs incurred. Changes in customer deposits are primarily due to the timing difference between the Company’s performance of services and payments from customers. To determine revenue recognized from customer deposits during the reporting periods, the Company allocates revenue to individual customer deposit balances and applies revenue recognized during the reporting periods to the beginning balances of customer deposits until the revenue exceeds the balances. Inventory Inventory consists of parts held for resale or for use in fixed fee contracts and is valued at the lower of cost and net realizable value. Cost is determined on the first-in, first-out basis. Trademarks and patents The Company expenses legal fees and filing costs associated with the development of its trademarks and patents. Plant and equipment Plant and equipment is stated at historical cost less accumulated depreciation and accumulated impairment losses. Subsequent costs are included in the asset’s carrying amount or recognized as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the Company and the cost of the item can be measured reliably. The carrying amount of the replaced asset is derecognized. All other repairs and maintenance are charged to the statement of comprehensive loss during the financial period in which they are incurred. Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognized in the statements of comprehensive loss. Amortization is calculated on a straight-line method to write off the cost of the assets to their residual values over their estimated useful lives. The amortization rates applicable to each category of plant and equipment are as follows: Class of plant and equipment Amortization rate Furniture and equipment 20% Computer equipment 33% Computer software 50% Vehicles 33% Leasehold improvements over term of lease Production tooling and molds per unit produced Share-based payments Share-based payments to employees are measured at the fair value of the instruments issued and amortized over the vesting periods. Share-based payments to non-employees are measured at the fair value of goods or services received or the fair value of the equity instruments issued, if it is determined the fair value of the goods or services cannot be reliably measured, and are recorded at the date the goods or services are received. The corresponding amounts are recorded to the option reserve. The fair value of options is determined using a Black–Scholes pricing model. The number of options expected to vest is reviewed and adjusted at the end of each reporting period such that the amount recognized for services received as consideration for the equity instruments granted shall be based on the number of equity instruments that eventually vest. Loss per share Basic loss per share is calculated by dividing the loss attributable to common shareholders by the weighted average number of common shares outstanding in the period. For all periods presented, the loss attributable to common shareholders equals the reported loss attributable to owners of the Company. Fully diluted loss per share is calculated by the treasury stock method. Under the treasury stock method, the weighted average number of common shares outstanding for the calculation of fully diluted loss per share assumes that the proceeds to be received on the exercise of dilutive share options and warrants are used to repurchase common shares at the average market price during the period. Research and development expenses Research costs are expensed when incurred and are stated net of government grants. Development costs including direct material, direct labour and contract service costs are capitalized as intangible assets when the Company can demonstrate that the technical feasibility of the project has been established; the Company intends to complete the asset for use or sale and has the ability to do so; the asset can generate probable future economic benefits; the technical and financial resources are available to complete the development; and the Company can reliably measure the expenditure attributable to the intangible asset during its development. After initial recognition, internally generated intangible assets are recorded at cost less accumulated amortization and accumulated impairment losses. These costs are amortized on a straight-line basis over the estimated useful life. To date, the Company did not have any development costs that met the capitalization criteria. Derivative Liability The Company accounts for its warrants as either equity or liabilities based upon the characteristics and provisions of each instrument. Warrants classified as equity are recorded at fair value as of the date of issuance on the Company’s consolidated balance sheets and no further adjustments to their valuation are made. Warrants classified as derivative liabilities that require separate accounting as liabilities are recorded on the Company’s consolidated balance sheets at their fair value on the date of issuance and will be revalued on each subsequent balance sheet date until such instruments are exercised or expire, with any changes in the fair value between reporting periods recorded as other income or expense. Management estimates the fair value of these liabilities using option pricing models and assumptions that are based on the individual characteristics of the warrants or instruments on the valuation date, as well as assumptions for future financings, expected volatility, expected life, yield, and risk-free interest rate. Impairment of assets The carrying amount of the Company’s long-lived assets with finite useful lives (which include plant and equipment and intangible assets) is reviewed at each reporting date to determine whether there is any indication of impairment. If such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss. An impairment loss is recognized whenever the carrying amount of an asset or its cash generating unit exceeds its recoverable amount. Impairment losses are recognized in the statement of comprehensive loss. The recoverable amount of assets is the greater of an asset’s fair value less cost to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects the current market assessments of the time value of money and the risks specific to the asset. For an asset that does not generate cash inflows largely independent of those from other assets, the recoverable amount is determined for the cash-generating unit to which the asset belongs. An impairment loss is only reversed if there is an indication that the impairment loss may no longer exist and there has been a change in the estimates used to determine the recoverable amount. Any reversal of impairment cannot increase the carrying value of the asset to an amount higher than the carrying amount that would have been determined had no impairment loss been recognized in previous years. Goodwill and other intangible assets that have an indefinite useful life are not subject to amortization and are tested annually for impairment, or more frequently if indicators of impairment exist. Income taxes Current income tax: Current income tax assets and liabilities for the current period are measured at the amount expected to be recovered from or paid to the taxation authorities. The tax rates and tax laws used to compute the amount are those that are enacted or substantively enacted, at the reporting date, in the countries where the Company operates and generates taxable income. Current income tax relating to items recognized directly in other comprehensive income or equity is recognized in other comprehensive income or equity and not in profit or loss. Management periodically evaluates positions taken in the tax returns with respect to situations in which applicable tax regulations are subject to interpretation and establishes provisions where appropriate. Tax Credits The Company earns SR&ED tax credits with respect to its research and development expenses. The benefit of these SR&ED tax credits is recorded as a reduction of research and development expenses when their recoverability is reasonably expected. The SR&ED tax credits earned while the Company was Canadian Controller Private Corporation are refundable to the Company and are recorded as a receivable, while the tax credits earned now the Company is a public company (as defined under Canadian tax laws) can be used to reduce future Canadian income taxes payable. Deferred income tax: Deferred income tax is recognized, using the asset and liability method, on temporary differences at the reporting date arising between the tax bases of assets and liabilities and their carrying amounts for financial reporting purposes. The carrying amount of deferred income tax assets is reviewed at the end of each reporting period and recognized only to the extent that it is probable that sufficient taxable profit will be available to allow all or part of the deferred income tax asset to be utilized. Deferred income tax assets and liabilities are measured at the tax rates that are expected to apply to the year when the asset is realized or the liability is settled, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period. Deferred income tax assets and deferred income tax liabilities are offset if a deferred income taxes relate to the same taxable entity and the same taxation authority. |
Accounting standards issued but
Accounting standards issued but not yet effective | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Standards Issued but not Yet Effective [Abstract] | |
Accounting standards issued but not yet effective | 3. Accounting standards issued but not yet effective New standard IFRS 16 “Leases” This new standard replaces IAS 17 “Leases” and the related interpretative guidance. IFRS 16 applies a control model to the identification of leases, distinguishing between a lease and a service contract on the basis of whether the customer controls the asset being leased. For those assets determined to meet the definition of a lease, IFRS 16 introduces significant changes to the accounting by lessees, introducing a single, on-balance sheet accounting model that is similar to current finance lease accounting, with limited exceptions for short-term leases or leases of low value assets. Lessor accounting is not substantially changed. The standard is effective for annual periods beginning on or after January 1, 2019. The Company will adopt the standard as at January 1, 2019 and based on preliminary calculations, expects to recognise a lease liability of $2.2M and a corresponding right-of-use asset on its statements of financial position as at January 1, 2019. In calculating the lease liability at this date, the Company has chosen to apply a practical expedient in IFRS 16 that allows for lease and non-lease components of a contract to be combined as a single lease component. This expedient has been applied to all contracts which have been identified to contain a lease per IFRS 16. Other accounting standards or amendments to existing accounting standards that have been issued but have future effective dates are either not applicable or are not expected to have a significant impact on the Company’s financial statements. |
Cash and cash equivalents
Cash and cash equivalents | 12 Months Ended |
Dec. 31, 2018 | |
Cash and cash equivalents [abstract] | |
Cash and cash equivalents | 4. Cash and cash equivalents 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: December 31, December 31, Cash $ 2,443,938 $ 6,715,996 Cash equivalent 16,482,995 1,895,000 $ 18,926,933 $ 8,610,996 |
Receivables
Receivables | 12 Months Ended |
Dec. 31, 2018 | |
Receivables [Abstract] | |
Receivables | 5. Receivables December 31, December 31, Trade receivable $ 84,443 $ 92,912 Construction contract asset 125,426 61,786 GST receivable 278,182 84,566 SR&ED tax credits receivable 675,000 - Other receivable 27,638 4,375 $ 1,190,689 $ 243,639 |
Plant and equipment
Plant and equipment | 12 Months Ended |
Dec. 31, 2018 | |
Plant and Equipment [Abstract] | |
Plant and equipment | 6. Plant and equipment Furniture Computer Vehicles Leasehold Production Total Cost: At December 31, 2016 $ 44,209 $ 18,897 $ 173,213 $ 12,146 $ - $ 248,465 Additions 246,634 54,757 216,837 89,054 914,060 1,521,342 At December 31, 2017 290,843 73,654 390,050 101,200 914,060 1,769,807 Additions 203,644 59,749 - 283,141 3,635,888 4,180,422 Disposals - - (2,001 ) - - - December 31, 2018 494,487 133,403 388,049 384,341 4,549,948 5,950,228 Amortization: At December 31, 2016 7,112 2,514 11,666 1,904 - 23,196 Charge for the year 181,494 24,633 74,098 72,703 - 352,928 At December 31, 2017 188,606 27,147 85,764 74,607 - 376,124 Charge for the year 42,192 38,542 129,487 40,117 - 250,338 At December 31, 2018 230,798 65,689 215,251 114,724 - 626,462 Net book value: At December 31, 2017 $ 102,237 $ 46,507 $ 304,286 $ 26,593 $ 914,060 $ 1,393,683 At December 31, 2018 $ 263,689 $ 67,714 $ 172,798 $ 269,617 $ 4,549,948 $ 5,323,766 On September 29, 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 ¥39.3 million ($7.8 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. At December 31, 2018, the Company had paid 90% of prototype tooling and molds and 36% of the mass production tooling and molds. Depreciation on the production tooling and molds is charged on a per unit produced basis and during the period no units had been produced using the production tooling and molds. Under the agreement, the Company agreed that the minimum purchase commitments for units of the SOLO vehicle are to be as follows: starting in third quarter of 2019, 5,000 over a 12 month period; in 2020 over the next 12 month period, 20,000; and in 2021 over the next 12 month period, 50,000, and which shall be payable following issue of Company’s purchase orders as follows: 30% after Zongshen schedules production, and 70% after accepted vehicle delivery. On October 16, 2017, the 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 has agreed to reimburse the Pledgor on a one for one basis for any pledged shares realized by Zongshen. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets and Acquisition of Intermeccanica | 12 Months Ended |
Dec. 31, 2018 | |
Acquisition of Intermeccanica [Abstract] | |
Goodwill and Intangible Assets and Acquisition of Intermeccanica | 7. Goodwill and Intangible Assets and Acquisition of Intermeccanica On October 18, 2017, the Company completed the acquisition of all of the outstanding shares of Intermeccanica, a developer and manufacturer of high-end custom-built vehicles and the contract assembler of the Company’s electric vehicles located in Greater Vancouver, BC. The acquisition of Intermeccanica is expected to accelerate the Company’s manufacture and delivery of its vehicles to customers, and the Company intends to develop and manufacture electric versions of some of Intermeccanica’s custom built vehicles. Total purchase consideration was $2,500,000. In addition to an initial payment of $100,000 in 2016, an additional $200,000 was paid prior to acquisition. On October 18, 2017, the Company paid $700,000 and entered into a Promissory Note (the “Note”) for the balance of $1,500,000. The Note bears interest at 5% per annum and was payable in installments of $500,000 plus accrued interest on the 6 th th th The following table summarizes the consideration paid for Intermeccanica, the fair value of identifiable assets acquired, liabilities assumed, goodwill and other intangible assets and an impairment of goodwill and other intangible assets. Fair value of purchase consideration at October 18, 2017 Cash $ 1,000,000 Promissory note 1,500,000 Total consideration $ 2,500,000 Fair value amounts of identifiable assets acquired and liabilities assumed Cash $ 59,449 Receivables 65,565 Prepaid expenses 12,848 Inventory 188,811 Plant and equipment 24,282 Intangible assets: Customer relationships 87,000 Contracted backlog 23,000 Non-compete covenants 25,000 Trade name 423,000 Trades payable and accrued liabilities (91,025 ) Customer deposits (167,236 ) Shareholder loans (43,538 ) Deferred income tax (149,794 ) Total net identifiable assets 457,362 Goodwill and other intangible assets 2,042,638 Total $ 2,500,000 At December 31, 2017 the Company performed an impairment test of the goodwill. The recoverable amount of the Intermeccanica cash-generating unit was determined to be $1,157,206 based on its fair value less costs to sell. The difference of $1,342,794 has been recorded as an impairment in net loss. Goodwill and other intangible assets recognized was primarily attributed to expected synergies arising from the acquisition of Intermeccanica. and the expertise and reputation of the assembled management and workforce. Goodwill is not expected to be deductible for income tax purposes. During the year ended December 31, 2018, the Company recorded amortization of $26,454 relating to the acquired intangible assets. No further impairment was identified at December 31, 2018. Total goodwill and other intangible assets consist of: December 31, December 31, Identifiable intangibles on acquisition of Intermeccanica $ 529,067 $ 558,000 Goodwill on acquisition of Intermeccanica 699,844 699,844 Other intangibles 10,212 2,170 $ 1,239,123 $ 1,260,014 |
Trade payables and accrued liab
Trade payables and accrued liabilities | 12 Months Ended |
Dec. 31, 2018 | |
Trade Payables and Accrued Liabilities [Abstract] | |
Trade payables and accrued liabilities | 8. Trade payables and accrued liabilities December 31, December 31, Trade payables $ 635,622 $ 457,520 Wages payables 80,573 62,110 Due to related parties (Note 18) 83,331 16,814 Accrued liabilities 463,335 587,346 $ 1,262,861 $ 1,123,790 |
Commitments
Commitments | 12 Months Ended |
Dec. 31, 2018 | |
Commitments [Abstract] | |
Commitments | 9. Commitments Lease obligations relate to the Company’s rent of office space and warehouse space. The term of the leases expire on November 1, 2020 and July 1, 2020 with the Company holding an option to renew for a further five years for the office space. As at December 31, 2018, future payments required under non-cancellable operating leases contracted for but not capitalized in the financial statements are as follows: December 31, December 31, Payable not later than one year $ 831,854 $ 310,034 Payable later than one year and not later than five years 1,316,980 507,036 Payable later than five years - - $ 2,148,834 $ 817,070 |
Income tax recovery and deferre
Income tax recovery and deferred tax assets and liabilities | 12 Months Ended |
Dec. 31, 2018 | |
Income tax recovery and deferred tax assets and liabilities [Abstract] | |
Income tax recovery and deferred tax assets and liabilities | 10. Income tax recovery and deferred tax assets and liabilities A reconciliation of the expected income tax recovery to the actual income tax recovery is as follows: December 31, 2018 December 31, 2017 December 31, 2016 Loss before tax $ (10,039,812 ) $ (11,366,372 ) $ (8,973,347 ) Statutory tax rate 27 % 26 % 26 % Expected income tax recovery at the statutory tax rate (2,710,749 ) (2,955,257 ) (2,333,070 ) Stock-based compensation 871,697 231,273 1,228,726 Changes in fair value of warrant derivative (2,080,904 ) 48,430 - Share issue costs and other (969,673 ) 256,445 (231,643 ) Effect of change in tax rate - (149,561 ) - SR&ED expenditures - 183,351 - Temporary differences not recognized 4,887,962 2,385,319 1,335,987 Income tax recovery $ (1,667 ) $ - $ - The Company has the following deductible (taxable) temporary differences: December 31, 2018 December 31, 2017 December 31, 2016 Non-capital loss carry-forwards $ 25,284,214 $ 11,436,565 $ 5,019,398 Property, plant and equipment 330,963 141,271 23,197 Share issue costs 4,969,038 1,983,154 737,637 SR&ED expenditures 2,331,495 1,397,672 - Other (411,487 ) (558,000 ) - 32,504,223 14,400,662 5,780,232 Deferred tax assets not recognized (33,059,017 ) (14,955,454 ) (5,780,232 ) Deferred tax liability (554,794 ) (554,794 ) - - Deferred tax liability (tax effected at 27%) $ (149,794 ) $ (149,794 ) $ - |
Derivative liability
Derivative liability | 12 Months Ended |
Dec. 31, 2018 | |
Derivative Liability [Abstract] | |
Derivative liability | 11. Derivative liability The exercise price of certain 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 derivate 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. During the year ended December 31, 2018, the Company issued 200,000 non-transferrable warrants exercisable at USD $16.80, which expire on January 22, 2021, issued 4,706,000 transferable warrants exercisable at USD $4.25, which expire on August 8, 2023, and 4,250,000 non-transferrable warrants exercisable at USD $2.56 which expiry on May 9, 2024. Warrants for 264,232 shares at USD $4.25 were exercised. The issue costs allocated to the derivative liability and recorded as expense in the consolidated statements of comprehensive loss was $1,493,554. A reconciliation of the changes in fair values of the derivative liability is below: December 31, Balance, beginning $ 3,655,690 Warrants issued 8,935,289 Warrants exercised (131,053 ) Changes in fair value of derivative liabilities (7,707,051 ) Balance, ending $ 4,752,875 The fair value of the transferrable warrants was calculated using the warrant price of USD $0.50 at issuance and USD $0.45 at December 31, 2018 as quoted on the NASDAQ. The fair value of the non-transferrable warrants issued during the year ended December 31, 2018 was calculated using a Black-Scholes Option Pricing Model. The weighted average assumptions used in the Black-Scholes Option Pricing Model are: At Issue December 31, Fair value of non-transferrable warrants outstanding $ 5,845,587 $ 2,026,119 Risk-free interest rate 2.32 % 1.86 % Expected term (in years) 5.39 4.66 Expected share price volatility 60 % 60 % |
Share capital
Share capital | 12 Months Ended |
Dec. 31, 2018 | |
Share Capital [Abstract] | |
Share capital | 12. Share capital Authorized share capital Unlimited number of common shares without par value. At December 31, 2018, the Company had 32,332,343 issued and outstanding common shares (December 31, 2017 – 23,794,106). During the year ended December 31, 2018, the Company issued a total of 8,028,521 common shares and 5,411,900 transferrable warrants for gross proceeds of $24,091,775 and 207,000 common shares for services with a fair value of $1,033,611. Share issue costs related to these issuances was $2,916,165 and includes 2,286 common shares issued for finder’s fees with a fair value of $23,678 and 1,020,094 warrants issued with a fair value of $940,070. Upon the exercise of warrants, the Company issued 294,232 common shares and received proceeds of $1,639,449. Upon the exercise of stock options, the Company issued 6,198 common shares and received proceeds of $12,395. Basic and fully diluted loss per share The calculation of basic and fully diluted loss per share for the year ended December 31, 2018 was based on the loss attributable to common shareholders of $10,038,145 (2017- $11,366,372) and the weighted average number of common shares outstanding of 26,582,664 (2017- 21,818,315). 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 has adopted an incentive stock option plan, which provides that the Board of Directors of the Company may from time to time, in its discretion, grant to directors, officers, employees and technical 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 options will be exercisable for a period of up to 7 years from the date of grant. Options may be exercised no later than 90 days following cessation of the optionee’s position with the Company. Options granted vest one-quarter on the first anniversary subsequent to the grant date and the remaining three-quarters vest in thirty-six equal monthly instalments commencing on the first anniversary of the grant date. On exercise, each option allows the holder to purchase one common share of the Company. The changes in options during the years ended December 31, 2018 and 2017 are as follows: December 31, 2018 December 31, 2017 Number of Weighted Number of Weighted Options outstanding, beginning 28,598,750 $ 0.40 28,087,500 $ 0.38 Options granted 1,307,424 9.29 560,000 2.00 Options exercised (6,198 ) 2.00 (6,250 ) 0.30 Options expired and forfeited (143,802 ) 3.03 (42,500 ) 2.00 Options cancelled (25,000,000 ) 0.37 Options outstanding, ending 4,756,174 $ 2.73 28,598,750 $ 0.40 Details of options outstanding as at December 31, 2018 are as follows: Exercise price Weighted average Number of options Number of $ 0.30 3.45 years 2,045,455 2,045,455 $ 0.30 3.62 years 308,522 263,529 $ 0.80 3.94 years 677,273 522,065 $ 0.80 4.18 years 12,500 8,854 $ 2.00 4.47 years 12,500 8,594 $ 2.00 5.13 years 357,500 243,646 $ 2.00 5.61 years 50,000 17,708 $ 9.60 USD 6.02 years 337,500 110,000 $ 9.00 USD 6.30 years 150,000 112,500 $ 9.16 USD 6.61 years 275,000 - $ 1.53 USD 4.89 years 120,000 - $ 5.00 USD 4.92 years 409,924 409,924 4.30 years 4,756,174 3,742,275 The weighted average grant date fair value of options granted during the year ended December 31, 2018 was $2.27 (2017-$0.74). The fair value was calculated using the Black-Scholes option pricing model using the following weighted average assumptions: Year ended December 31, 2018 Year ended December 31, 2017 Expected life of options 5 years 5 years Annualized volatility 60 % 60 % Risk-free interest rate 1.91% - 2.9% 1.02% - 1.43% Dividend rate 0 % 0 % During the year ended December 31, 2018, the Company recognized stock-based compensation expense of $3,228,508 (2017 - $889,511; 2016 - $1,461,189). Warrants On exercise, each warrant allows the holder to purchase one common share of the Company. The changes in warrants during the years ended December 31, 2018 and 2017 are as follows: December 31, 2018 December 31, 2017 Number of Weighted Number of Weighted Warrants outstanding, beginning 11,856,857 $ 4.70 9,266,793 $ 3.28 Warrants issued 10,807,093 5.36 2,592,564 9.82 Warrants exercised (294,232 ) 5.08 (2,500 ) 4.00 Warrants outstanding, ending 22,369,718 $ 5.03 11,856,857 $ 4.70 At December 31, 2018, all warrants outstanding, except for 212,500 placement agents’ warrants, were exercisable. Details of warrants outstanding as at December 31, 2018 are as follows: Exercise Price Weighted average Number of warrants Non-Transferable Warrants $0.80 CAD - $16.00 CAD 2.76 years 11,457,559 $2.00 USD - $24.00 USD 4.65 years 5,764,492 Transferable Warrants $4.25 USD 4.61 years 5,147,668 |
Warrants and Share Based Reserv
Warrants and Share Based Reserves | 12 Months Ended |
Dec. 31, 2018 | |
Warrants And Share Based Reserves [Abstract] | |
Warrants and Share Based Reserves | 13. Warrants and Share Based Reserves The warrant & share-based payment reserve records items are recognized as stock-based compensation expense and other share-based payments until such time that the stock options or warrants are exercised, at which time the corresponding amount will be transferred to share capital. If the options, or warrants expire unexercised, the amount remains in the share-based payment reserve account. |
General and administrative expe
General and administrative expenses | 12 Months Ended |
Dec. 31, 2018 | |
General and Administrative Expenses [Abstract] | |
General and administrative expenses | 14. General and administrative expenses December 31, December 31, December 31, Rent $ 488,273 $ 269,716 $ 141,957 Office expenses 944,771 345,986 113,158 Legal and professional 1,491,818 912,347 643,725 Consulting fees 1,191,593 405,176 186,437 Investor relations 614,803 113,256 - Salaries 759,680 326,770 120,558 $ 5,490,938 $ 2,373,251 $ 1,205,835 |
Research and development expens
Research and development expenses | 12 Months Ended |
Dec. 31, 2018 | |
Research and Development Expenses [Abstract] | |
Research and development expenses | 15. Research and development expenses December 31, December 31, December 31, Labour $ 3,581,970 $ 1,971,945 $ 1,715,562 Materials 3,393,295 2,763,355 1,266,730 Government grants (1,409,229 ) (304,914 ) (203,997 ) $ 5,566,036 $ 4,430,386 $ 2,778,295 |
Sales and marketing expenses
Sales and marketing expenses | 12 Months Ended |
Dec. 31, 2018 | |
Sales and Marketing Expenses [Abstract] | |
Sales and marketing expenses | 16. Sales and marketing expenses December 31, December 31, December 31, Consulting $ 531,810 $ 143,275 $ 35,847 Marketing 461,731 182,723 93,345 Salaries 393,360 305,383 80,263 $ 1,386,901 $ 631,381 $ 209,455 |
Segmented information
Segmented information | 12 Months Ended |
Dec. 31, 2018 | |
Segmented Information [Abstract] | |
Segmented information | 17. Segmented information 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 build 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. Year ended Dec 31, 2018 Year ended December 31, 2017 Electric Vehicles Custom Built Electric Vehicles Custom Built Revenue $ - $ 777,302 $ - $ 109,173 Gross profit - 202,130 - 45,223 Operating expenses 16,604,687 455,848 9,473,794 60,585 Other items (6,841,211 ) 22,618 536,414 1,340,802 Income tax - (1,667 ) - - Net and comprehensive loss 9,763,476 274,669 10,010,208 1,356,164 Inventory $ 189,182 $ 231,555 - $ 232,903 Plant and equipment 5,299,857 23,909 $ 1,370,350 23,333 |
Related party transactions
Related party transactions | 12 Months Ended |
Dec. 31, 2018 | |
Related party transactions [Abstract] | |
Related party transactions | 18. Related party transactions Related party balances The following amounts are due to related parties: December 31, December 31, Shareholder loan $ 6,230 $ 10,383 Due to related parties (Note 8) 83,331 16,814 $ 89,561 $ 27,197 These amounts are unsecured, non-interest bearing and have no fixed terms of repayment. Key management personnel compensation December 31, December 31, December 31, Consulting fees $ 335,114 $ 185,000 $ 136,500 Salary 459,440 280,167 45,000 Directors fees 165,336 - - Deferred salary for CEO - - 30,000 Stock-based compensation 1,497,881 659,228 1,238,013 $ 2,457,771 $ 1,124,395 $ 1,449,513 |
Financial instruments and finan
Financial instruments and financial risk management | 12 Months Ended |
Dec. 31, 2018 | |
Financial Instruments and Financial Risk Management [Abstract] | |
Financial instruments and financial risk management | 19. Financial instruments and financial risk management 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 government grant and refundable government goods and services taxes. 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. 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 December 31, 2018 and 2017: At December 31, 2018 Within one year Between one More than Trade payables $ 718,953 - - Accrued liabilities 543,908 - - Customer deposits 303,076 - - Shareholder loan 6,230 - - $ 1,572,157 $ - $ - At December 31, 2017 Within one year Between one More than Bank loan $ 123,637 $ - $ - Trade payables 474,334 - - Accrued liabilities 649,456 - - Customer deposits 362,829 - - Shareholder loan 10,383 - - Promissory note 1,500,000 - - $ 3,120,639 $ - $ - 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: December 31, December 31, Cash and cash equivalents $ 18,102,872 $ 5,596,635 Trade receivables 51,164 - Trade payables (382,087 ) (138,794 ) $ 17,771,949 $ 5,457,841 Based on the above net exposures, as at December 31, 2018, a 10% change in the US dollars to Canadian dollar exchange rate would impact the Company’s net loss by $1,777,195 (2017 - $545,784). 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 twelve 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 $164,830 for the year ended December 31, 2018 (2017 - $18,950). Classification of financial instruments Financial assets included in the statement of financial position are as follows: December 31, December 31, Loans and receivables: Cash and cash equivalents $ 18,926,933 $ 8,610,996 Receivables 1,190,689 243,639 $ 20,117,622 $ 8,854,635 Financial liabilities included in the statement of financial position are as follows: December 31, December 31, Non-derivative financial liabilities: Bank loan $ - $ 123,637 Trade payable and accrued liabilities 1,262,861 1,123,790 Customer deposits 303,076 362,829 Shareholder loan 6,230 10,383 Promissory note - 1,500,000 Derivative financial liabilities: Derivative liability 4,752,875 3,655,690 $ 6,325,042 $ 6,776,329 Fair value The fair value of the Company’s financial assets and liabilities 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 December 31, 2018 consisted of the derivative liability, which is measured using level 1 inputs. The fair value of the derivative liability relating to the transferrable warrants was calculated using the quoted market price on the 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 as an estimate of future volatility. At December 31, 2018, if the volatility used was increased by 10% the impact would be an increase to the derivate liability of $575,723 with a corresponding increase in the comprehensive loss. |
Capital management
Capital management | 12 Months Ended |
Dec. 31, 2018 | |
Capital Management [Abstract] | |
Capital management | 21. Capital management 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 year. The Company is not subject to any externally imposed capital requirements. |
Subsequent events
Subsequent events | 12 Months Ended |
Dec. 31, 2018 | |
Subsequent Events [Abstract] | |
Subsequent events | 22. Subsequent events On January 15, 2019, we issued an aggregate of 32,000 common shares to three consultants as part of their consulting agreements with our Company. On January 15, 2019, the Board of Directors approved 4 management agreements dated January 1, 2019 for the following: Jerry Kroll, Henry Reisner, Bal Bhullar and Isaac Moss. On January 24, 2019, we issued 18,060 common shares to a consultant as part of their consulting agreement with our Company. On January 31, 2019, we issued 29,950 common shares to settle debt for legal services for $50,000. On February 14, 2019, we received $20,000 from our CEO for the exercise of warrants at a price of $0.80, issued 25,000 common shares of the Company. On February 14, 2019, we issued 3,010 common shares to a consultant as a part of their consulting agreement with our Company. On February 15, 2019, we received $180,000 from an investor for the exercise of warrants at a price of $0.80, we issued 225,000 common shares of the Company. On February 20, 2019, we received an aggregate of USD$2,424,625 from three investors for the exercise of warrants at a price of USD$4.25, we issued 570,500 common shares of the Company. On February 25, 2019, we received an aggregate of USD$322,150 from two investors for the exercise of warrants at a price of USD$4.25, we issued 75,800 common shares of the Company. On March 19, 2019, the Company granted a total of 1,228,182 stock options with an exercise price of USD$3.40 for a period of 7 years with various vesting schedules to employees, Directors and Officers. On March 27, 2019, Company issued a total of 3,333,334 common shares at a price of USD$3.60 for gross proceeds of USD$12,000,000. Share issuance costs and fees related to the transaction were USD$1,040,000 which included a 7% placement fee. |
Significant accounting polici_2
Significant accounting policies and basis of preparation (Policies) | 12 Months Ended |
Dec. 31, 2018 | |
Significant Accounting Policies and Basis of Preparation [Abstract] | |
Statement of compliance with International Financial Reporting Standards | Statement of compliance with International Financial Reporting Standards These consolidated financial statements have been prepared in accordance with International Financial Reporting Standards (“IFRS”), as issued by the International Accounting Standards Board (“IASB”) and including interpretations of the International Financial Reporting Interpretations Committee (“IFRIC”) as applicable to the preparation of annual financial statements. These consolidated financial statements were prepared using the same accounting policies and methods as those used in the Company’s consolidated financial statements for the year ended December 31, 2017, with the exception of new accounting policies that were adopted on January 1, 2018 as described in this Note. |
Basis of preparation | Basis of preparation The financial statements of the Company have been prepared on an accrual basis and are based on historical costs, modified where applicable. 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. and Intermeccanica from the date of its acquisition on October 18, 2017 (Note 7). 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 fair value of the identifiable assets and liabilities acquired from Intermeccanica, the estimated recoverable amount of goodwill, intangible assets and other long-lived assets, the useful lives of plant and equipment, the estimated amount of scientific research and experimental development (SR&ED) tax credits, fair value measurements for financial instruments and share-based payments, and the recoverability and measurement of deferred tax assets. |
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 judgments in applying the Company’s 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 policy - Financial Instruments | Change in accounting policy - Financial Instruments The Company adopted the requirements of IFRS 9 Financial Instruments (“IFRS 9”) as of January 1, 2018. IFRS 9 replaces IAS 39 Financial Instruments: Recognition and Measurement (“IAS 39”). IFRS 9 utilizes a revised model for recognition and measurement of financial instruments and a single, forward-looking “expected loss” impairment model. Most of the requirements in IAS 39 for classification and measurement of financial liabilities were carried forward in IFRS 9, so the Company’s accounting policy with respect to its financial liabilities is unchanged. As a result of the adoption of IFRS 9, management has retrospectively changed its accounting policy for financial assets, for assets that continued to be recognized at the date of initial application. The change did not impact the carrying value of any financial assets or financial liabilities on the transition date. The following is the Company’s new accounting policy for financial instruments under IFRS 9: The Company classifies its financial instruments in the following categories: at fair value through profit or loss (“FVTPL”), at fair value through other comprehensive income (loss) (“FVTOCI”) or at amortized cost. The Company determines the classification of financial assets at initial recognition. The classification of debt instruments is driven by the Company’s business model for managing the financial assets and their contractual cash flow characteristics. Equity instruments that are held for trading are classified as FVTPL. For other equity instruments, on the day of acquisition the Company can make an irrevocable election (on an instrument-by-instrument basis) to designate them as at FVTOCI. Financial liabilities are measured at amortized cost, unless they are required to be measured at FVTPL (such as instruments held for trading or derivatives) or if the Company has opted to measure them at FVTPL. The Company completed a detailed assessment of its financial assets and liabilities as at January 1, 2018. The following table shows the original classification under IAS 39 and the new classification under IFRS 9: Financial assets/liabilities Original classification IAS 39 New classification IFRS 9 Cash and cash equivalents Loans and Receivables Amortized cost Receivables Loans and Receivables Amortized cost Trade payables and accrued liabilities Other financial liabilities Amortized cost Shareholder loan Other financial liabilities Amortized cost Bank overdraft and demand loan Other financial liabilities Amortized cost Derivative liability FVTPL FVTPL There is no impact on amounts previously recognized on adoption of IFRS 9 on January 1, 2018. No change to previously presented financial statements were required Financial assets and liabilities at amortized cost are initially recognized at fair value plus or minus transaction costs, respectively, and subsequently carried at amortized cost less any impairment. Financial assets and liabilities carried at FVTPL are initially recorded at fair value and transaction costs are expensed in the consolidated statements of comprehensive loss. Realized and unrealized gains and losses arising from changes in the fair value of the financial assets and liabilities held at FVTPL are included in the consolidated statements of comprehensive loss in the period in which they arise. The Company recognizes a loss allowance for expected credit losses on financial assets that are measured at amortized cost. At each reporting date, the Company measures the loss allowance for the financial asset at an amount equal to the lifetime expected credit losses if the credit risk on the financial asset has increased significantly since initial recognition. If at the reporting date, the financial asset has not increased significantly since initial recognition, the Company measures the loss allowance for the financial asset at an amount equal to the twelve month expected credit losses. The Company shall recognize in the consolidated statements of comprehensive loss, as an impairment gain or loss, the amount of expected credit losses (or reversal) that is required to adjust the loss allowance at the reporting date to the amount that is required to be recognized. The Company derecognizes financial assets only when the contractual rights to cash flows from the financial assets expire, or when it transfers the financial assets and substantially all of the associated risks and rewards of ownership to another entity. Gains and losses on derecognition are generally recognized in the consolidated statements of comprehensive loss. |
Changes in Accounting Policies - Revenue from contracts with customers | Changes in Accounting Policies – Revenue from contracts with customers The Company adopted all of the requirements of IFRS 15 Revenue from Contracts with Customers (“IFRS 15”) as of January 1, 2018. IFRS 15 utilizes a methodical framework for entities to follow in order to recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods and services. The change did not impact the cumulative revenue recognized on contracts in progress or the related assets and liabilities on the transition date. The following is the Company’s new accounting policy for revenue from contracts with customers under IFRS 15, which is not materially different than its previous accounting policy: Revenue is recognized to the extent that the amount of revenue can be measured reliably and collection is probable . Part sales: Sales of parts are recognized when the Company has transferred control to the customer which generally occurs upon shipment. Services, repairs and support services: Services, repairs and support services are recognized in the accounting period when the services are rendered. Sales of custom build vehicles: The Company manufactures and sells custom built vehicles typically on fixed fee arrangements with its customers. Revenue is recognized in the accounting period in which the services are rendered, by reference to the stage of completion. The stage of completion is determined as a percentage based on the amount of costs incurred compared to the estimated cost of completion. Revenue recognized in excess of amounts billed is recorded as accounts receivable. Amounts received in excess of work performed is recorded as deferred revenue. Sales of electric vehicles: The Company will be manufacturing and selling an electric powered one-seater vehicle which has not yet been commercialized. At this time, proceeds of these sales are considered to be incidental revenue and are not being made with the expectation of profit. These are sold to ‘beta’ customers who provide real-world testing and feedback on the vehicles. The revenue generated from sales are recorded against research & development expenses. |
Cash and cash equivalents | Cash and cash equivalents Cash and cash equivalents include cash and short-term investments with original maturities of less than 90 days and are presented at cost, which approximates market value. |
Customer deposits | Customer deposits Customer deposits consist primarily of advance payments and billings in excess of costs incurred. Changes in customer deposits are primarily due to the timing difference between the Company’s performance of services and payments from customers. To determine revenue recognized from customer deposits during the reporting periods, the Company allocates revenue to individual customer deposit balances and applies revenue recognized during the reporting periods to the beginning balances of customer deposits until the revenue exceeds the balances. |
Inventory | Inventory Inventory consists of parts held for resale or for use in fixed fee contracts and is valued at the lower of cost and net realizable value. Cost is determined on the first-in, first-out basis. |
Trademarks and patents | Trademarks and patents The Company expenses legal fees and filing costs associated with the development of its trademarks and patents. |
Plant and equipment | Plant and equipment Plant and equipment is stated at historical cost less accumulated depreciation and accumulated impairment losses. Subsequent costs are included in the asset’s carrying amount or recognized as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the Company and the cost of the item can be measured reliably. The carrying amount of the replaced asset is derecognized. All other repairs and maintenance are charged to the statement of comprehensive loss during the financial period in which they are incurred. Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognized in the statements of comprehensive loss. Amortization is calculated on a straight-line method to write off the cost of the assets to their residual values over their estimated useful lives. The amortization rates applicable to each category of plant and equipment are as follows: Class of plant and equipment Amortization rate Furniture and equipment 20% Computer equipment 33% Computer software 50% Vehicles 33% Leasehold improvements over term of lease Production tooling and molds per unit produced |
Share-based payments | Share-based payments Share-based payments to employees are measured at the fair value of the instruments issued and amortized over the vesting periods. Share-based payments to non-employees are measured at the fair value of goods or services received or the fair value of the equity instruments issued, if it is determined the fair value of the goods or services cannot be reliably measured, and are recorded at the date the goods or services are received. The corresponding amounts are recorded to the option reserve. The fair value of options is determined using a Black–Scholes pricing model. The number of options expected to vest is reviewed and adjusted at the end of each reporting period such that the amount recognized for services received as consideration for the equity instruments granted shall be based on the number of equity instruments that eventually vest. |
Loss per share | Loss per share Basic loss per share is calculated by dividing the loss attributable to common shareholders by the weighted average number of common shares outstanding in the period. For all periods presented, the loss attributable to common shareholders equals the reported loss attributable to owners of the Company. Fully diluted loss per share is calculated by the treasury stock method. Under the treasury stock method, the weighted average number of common shares outstanding for the calculation of fully diluted loss per share assumes that the proceeds to be received on the exercise of dilutive share options and warrants are used to repurchase common shares at the average market price during the period. |
Research and development expenses | Research and development expenses Research costs are expensed when incurred and are stated net of government grants. Development costs including direct material, direct labour and contract service costs are capitalized as intangible assets when the Company can demonstrate that the technical feasibility of the project has been established; the Company intends to complete the asset for use or sale and has the ability to do so; the asset can generate probable future economic benefits; the technical and financial resources are available to complete the development; and the Company can reliably measure the expenditure attributable to the intangible asset during its development. After initial recognition, internally generated intangible assets are recorded at cost less accumulated amortization and accumulated impairment losses. These costs are amortized on a straight-line basis over the estimated useful life. To date, the Company did not have any development costs that met the capitalization criteria. |
Derivative Liability | Derivative Liability The Company accounts for its warrants as either equity or liabilities based upon the characteristics and provisions of each instrument. Warrants classified as equity are recorded at fair value as of the date of issuance on the Company’s consolidated balance sheets and no further adjustments to their valuation are made. Warrants classified as derivative liabilities that require separate accounting as liabilities are recorded on the Company’s consolidated balance sheets at their fair value on the date of issuance and will be revalued on each subsequent balance sheet date until such instruments are exercised or expire, with any changes in the fair value between reporting periods recorded as other income or expense. Management estimates the fair value of these liabilities using option pricing models and assumptions that are based on the individual characteristics of the warrants or instruments on the valuation date, as well as assumptions for future financings, expected volatility, expected life, yield, and risk-free interest rate. |
Impairment of assets | Impairment of assets The carrying amount of the Company’s long-lived assets with finite useful lives (which include plant and equipment and intangible assets) is reviewed at each reporting date to determine whether there is any indication of impairment. If such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss. An impairment loss is recognized whenever the carrying amount of an asset or its cash generating unit exceeds its recoverable amount. Impairment losses are recognized in the statement of comprehensive loss. The recoverable amount of assets is the greater of an asset’s fair value less cost to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects the current market assessments of the time value of money and the risks specific to the asset. For an asset that does not generate cash inflows largely independent of those from other assets, the recoverable amount is determined for the cash-generating unit to which the asset belongs. An impairment loss is only reversed if there is an indication that the impairment loss may no longer exist and there has been a change in the estimates used to determine the recoverable amount. Any reversal of impairment cannot increase the carrying value of the asset to an amount higher than the carrying amount that would have been determined had no impairment loss been recognized in previous years. Goodwill and other intangible assets that have an indefinite useful life are not subject to amortization and are tested annually for impairment, or more frequently if indicators of impairment exist. |
Income taxes | Income taxes Current income tax: Current income tax assets and liabilities for the current period are measured at the amount expected to be recovered from or paid to the taxation authorities. The tax rates and tax laws used to compute the amount are those that are enacted or substantively enacted, at the reporting date, in the countries where the Company operates and generates taxable income. Current income tax relating to items recognized directly in other comprehensive income or equity is recognized in other comprehensive income or equity and not in profit or loss. Management periodically evaluates positions taken in the tax returns with respect to situations in which applicable tax regulations are subject to interpretation and establishes provisions where appropriate. Tax Credits The Company earns SR&ED tax credits with respect to its research and development expenses. The benefit of these SR&ED tax credits is recorded as a reduction of research and development expenses when their recoverability is reasonably expected. The SR&ED tax credits earned while the Company was Canadian Controller Private Corporation are refundable to the Company and are recorded as a receivable, while the tax credits earned now the Company is a public company (as defined under Canadian tax laws) can be used to reduce future Canadian income taxes payable. Deferred income tax: Deferred income tax is recognized, using the asset and liability method, on temporary differences at the reporting date arising between the tax bases of assets and liabilities and their carrying amounts for financial reporting purposes. The carrying amount of deferred income tax assets is reviewed at the end of each reporting period and recognized only to the extent that it is probable that sufficient taxable profit will be available to allow all or part of the deferred income tax asset to be utilized. Deferred income tax assets and liabilities are measured at the tax rates that are expected to apply to the year when the asset is realized or the liability is settled, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period. Deferred income tax assets and deferred income tax liabilities are offset if a deferred income taxes relate to the same taxable entity and the same taxation authority. |
Significant accounting polici_3
Significant accounting policies and basis of preparation (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Significant Accounting Policies and Basis of Preparation [Abstract] | |
Schedule of property, plant and equipment | Class of plant and equipment Amortization rate Furniture and equipment 20% Computer equipment 33% Computer software 50% Vehicles 33% Leasehold improvements over term of lease Production tooling and molds per unit produced |
Cash and cash equivalents (Tabl
Cash and cash equivalents (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Cash and cash equivalents [abstract] | |
Schedule of cash and cash equivalents | December 31, December 31, Cash $ 2,443,938 $ 6,715,996 Cash equivalent 16,482,995 1,895,000 $ 18,926,933 $ 8,610,996 |
Receivables (Tables)
Receivables (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Receivables [Abstract] | |
Schedule of receivables | December 31, December 31, Trade receivable $ 84,443 $ 92,912 Construction contract asset 125,426 61,786 GST receivable 278,182 84,566 SR&ED tax credits receivable 675,000 - Other receivable 27,638 4,375 $ 1,190,689 $ 243,639 |
Plant and equipment (Tables)
Plant and equipment (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Plant and Equipment [Abstract] | |
Schedule of plant and equipment | Furniture Computer Vehicles Leasehold Production Total Cost: At December 31, 2016 $ 44,209 $ 18,897 $ 173,213 $ 12,146 $ - $ 248,465 Additions 246,634 54,757 216,837 89,054 914,060 1,521,342 At December 31, 2017 290,843 73,654 390,050 101,200 914,060 1,769,807 Additions 203,644 59,749 - 283,141 3,635,888 4,180,422 Disposals - - (2,001 ) - - - December 31, 2018 494,487 133,403 388,049 384,341 4,549,948 5,950,228 Amortization: At December 31, 2016 7,112 2,514 11,666 1,904 - 23,196 Charge for the year 181,494 24,633 74,098 72,703 - 352,928 At December 31, 2017 188,606 27,147 85,764 74,607 - 376,124 Charge for the year 42,192 38,542 129,487 40,117 - 250,338 At December 31, 2018 230,798 65,689 215,251 114,724 - 626,462 Net book value: At December 31, 2017 $ 102,237 $ 46,507 $ 304,286 $ 26,593 $ 914,060 $ 1,393,683 At December 31, 2018 $ 263,689 $ 67,714 $ 172,798 $ 269,617 $ 4,549,948 $ 5,323,766 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets and Acquisition of Intermeccanica (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Acquisition of Intermeccanica [Abstract] | |
Schedule of consideration paid for Intermeccanica | Fair value of purchase consideration at October 18, 2017 Cash $ 1,000,000 Promissory note 1,500,000 Total consideration $ 2,500,000 Fair value amounts of identifiable assets acquired and liabilities assumed Cash $ 59,449 Receivables 65,565 Prepaid expenses 12,848 Inventory 188,811 Plant and equipment 24,282 Intangible assets: Customer relationships 87,000 Contracted backlog 23,000 Non-compete covenants 25,000 Trade name 423,000 Trades payable and accrued liabilities (91,025 ) Customer deposits (167,236 ) Shareholder loans (43,538 ) Deferred income tax (149,794 ) Total net identifiable assets 457,362 Goodwill and other intangible assets 2,042,638 Total $ 2,500,000 |
Schedule of goodwill and other intangible assets | December 31, 2018 December 31, 2017 Identifiable intangibles on acquisition of Intermeccanica $ 529,067 $ 558,000 Goodwill on acquisition of Intermeccanica 699,844 699,844 Other intangibles 10,212 2,170 $ 1,239,123 $ 1,260,014 |
Trade payables and accrued li_2
Trade payables and accrued liabilities (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Trade Payables and Accrued Liabilities [Abstract] | |
Schedule of trade payables and accrued liabilities | December 31, December 31, Trade payables $ 635,622 $ 457,520 Wages payables 80,573 62,110 Due to related parties (Note 18) 83,331 16,814 Accrued liabilities 463,335 587,346 $ 1,262,861 $ 1,123,790 |
Commitments (Tables)
Commitments (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Commitments [Abstract] | |
Schedule of future payments required under non-cancellable operating leases contracted not capitalized in financial statements | December 31, December 31, Payable not later than one year $ 831,854 $ 310,034 Payable later than one year and not later than five years 1,316,980 507,036 Payable later than five years - - $ 2,148,834 $ 817,070 |
Income Tax Expense and Deferred
Income Tax Expense and Deferred Tax Assets and Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Income tax recovery and deferred tax assets and liabilities [Abstract] | |
Schedule of reconciliation of expected income tax recovery to actual income tax recovery | December 31, 2018 December 31, 2017 December 31, 2016 Loss before tax $ (10,039,812 ) $ (11,366,372 ) $ (8,973,347 ) Statutory tax rate 27 % 26 % 26 % Expected income tax recovery at the statutory tax rate (2,710,749 ) (2,955,257 ) (2,333,070 ) Stock-based compensation 871,697 231,273 1,228,726 Changes in fair value of warrant derivative (2,080,904 ) 48,430 - Share issue costs and other (969,673 ) 256,445 (231,643 ) Effect of change in tax rate - (149,561 ) - SR&ED expenditures - 183,351 - Temporary differences not recognized 4,887,962 2,385,319 1,335,987 Income tax recovery $ (1,667 ) $ - $ - |
Schedule of deductible temporary differences | December 31, 2018 December 31, 2017 December 31, 2016 Non-capital loss carry-forwards $ 25,284,214 $ 11,436,565 $ 5,019,398 Property, plant and equipment 330,963 141,271 23,197 Share issue costs 4,969,038 1,983,154 737,637 SR&ED expenditures 2,331,495 1,397,672 - Other (411,487 ) (558,000 ) - 32,504,223 14,400,662 5,780,232 Deferred tax assets not recognized (33,059,017 ) (14,955,454 ) (5,780,232 ) Deferred tax liability (554,794 ) (554,794 ) - - Deferred tax liability (tax effected at 27%) $ (149,794 ) $ (149,794 ) $ - |
Derivative liability (Tables)
Derivative liability (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Derivative Liability [Abstract] | |
Schedule of changes in fair values of the derivative liability | December 31, Balance, beginning $ 3,655,690 Warrants issued 8,935,289 Warrants exercised (131,053 ) Changes in fair value of derivative liabilities (7,707,051 ) Balance, ending $ 4,752,875 |
Schedule of weighted average assumptions used in the Black-Scholes Option Pricing Model | At Issue December 31, Fair value of non-transferrable warrants outstanding $ 5,845,587 $ 2,026,119 Risk-free interest rate 2.32 % 1.86 % Expected term (in years) 5.39 4.66 Expected share price volatility 60 % 60 % |
Share capital (Tables)
Share capital (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Share Capital [Abstract] | |
Schedule of changes in options | December 31, 2018 December 31, 2017 Number of Weighted Number of Weighted Options outstanding, beginning 28,598,750 $ 0.40 28,087,500 $ 0.38 Options granted 1,307,424 9.29 560,000 2.00 Options exercised (6,198 ) 2.00 (6,250 ) 0.30 Options expired and forfeited (143,802 ) 3.03 (42,500 ) 2.00 Options cancelled (25,000,000 ) 0.37 Options outstanding, ending 4,756,174 $ 2.73 28,598,750 $ 0.40 |
Schedule of details of options outstanding | Exercise price Weighted average Number of options Number of $ 0.30 3.45 years 2,045,455 2,045,455 $ 0.30 3.62 years 308,522 263,529 $ 0.80 3.94 years 677,273 522,065 $ 0.80 4.18 years 12,500 8,854 $ 2.00 4.47 years 12,500 8,594 $ 2.00 5.13 years 357,500 243,646 $ 2.00 5.61 years 50,000 17,708 $ 9.60 USD 6.02 years 337,500 110,000 $ 9.00 USD 6.30 years 150,000 112,500 $ 9.16 USD 6.61 years 275,000 - $ 1.53 USD 4.89 years 120,000 - $ 5.00 USD 4.92 years 409,924 409,924 4.30 years 4,756,174 3,742,275 |
Schedule of stock options Black-Scholes option pricing model | Year ended December 31, 2018 Year ended December 31, 2017 Expected life of options 5 years 5 years Annualized volatility 60 % 60 % Risk-free interest rate 1.91% - 2.9% 1.02% - 1.43% Dividend rate 0 % 0 % |
Schedule of changes in warrants | December 31, 2018 December 31, 2017 Number of Weighted Number of Weighted Warrants outstanding, beginning 11,856,857 $ 4.70 9,266,793 $ 3.28 Warrants issued 10,807,093 5.36 2,592,564 9.82 Warrants exercised (294,232 ) 5.08 (2,500 ) 4.00 Warrants outstanding, ending 22,369,718 $ 5.03 11,856,857 $ 4.70 |
Schedule of details in warrants outstanding | Exercise Price Weighted average Number of warrants Non-Transferable Warrants $0.80 CAD - $16.00 CAD 2.76 years 11,457,559 $2.00 USD - $24.00 USD 4.65 years 5,764,492 Transferable Warrants $4.25 USD 4.61 years 5,147,668 |
General and administrative ex_2
General and administrative expenses (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
General and Administrative Expenses [Abstract] | |
Schedule of general and administrative expenses | December 31, December 31, December 31, Rent $ 488,273 $ 269,716 $ 141,957 Office expenses 944,771 345,986 113,158 Legal and professional 1,491,818 912,347 643,725 Consulting fees 1,191,593 405,176 186,437 Investor relations 614,803 113,256 - Salaries 759,680 326,770 120,558 $ 5,490,938 $ 2,373,251 $ 1,205,835 |
Research and development expe_2
Research and development expenses (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Research and Development Expenses [Abstract] | |
Schedule of research and development expense | December 31, December 31, December 31, Labour $ 3,581,970 $ 1,971,945 $ 1,715,562 Materials 3,393,295 2,763,355 1,266,730 Government grants (1,409,229 ) (304,914 ) (203,997 ) $ 5,566,036 $ 4,430,386 $ 2,778,295 |
Sales and marketing expenses (T
Sales and marketing expenses (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Sales and Marketing Expenses [Abstract] | |
Schedule of sales and marketing expenses | December 31, December 31, December 31, Consulting $ 531,810 $ 143,275 $ 35,847 Marketing 461,731 182,723 93,345 Salaries 393,360 305,383 80,263 $ 1,386,901 $ 631,381 $ 209,455 |
Segmented information (Tables)
Segmented information (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Segmented Information [Abstract] | |
Schedule of segmented information | Year ended Dec 31, 2018 Year ended December 31, 2017 Electric Vehicles Custom Built Electric Vehicles Custom Built Revenue $ - $ 777,302 $ - $ 109,173 Gross profit - 202,130 - 45,223 Operating expenses 16,604,687 455,848 9,473,794 60,585 Other items (6,841,211 ) 22,618 536,414 1,340,802 Income tax - (1,667 ) - - Net and comprehensive loss 9,763,476 274,669 10,010,208 1,356,164 Inventory $ 189,182 $ 231,555 - $ 232,903 Plant and equipment 5,299,857 23,909 $ 1,370,350 23,333 |
Related party transactions (Tab
Related party transactions (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Related party transactions [Abstract] | |
Schedule of related party balances | December 31, 2018 December 31, 2017 Shareholder loan $ 6,230 $ 10,383 Due to related parties (Note 8) 83,331 16,814 $ 89,561 $ 27,197 |
Schedule of key management personnel compensation | December 31, December 31, December 31, Consulting fees $ 335,114 $ 185,000 $ 136,500 Salary 459,440 280,167 45,000 Directors fees 165,336 - - Deferred salary for CEO - - 30,000 Stock-based compensation 1,497,881 659,228 1,238,013 $ 2,457,771 $ 1,124,395 $ 1,449,513 |
Financial instruments and fin_2
Financial instruments and financial risk management (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Financial Instruments and Financial Risk Management [Abstract] | |
Schedule of contractual maturities of non-derivative financial liabilities | At December 31, 2018 Within one year Between one More than Trade payables $ 718,953 - - Accrued liabilities 543,908 - - Customer deposits 303,076 - - Shareholder loan 6,230 - - $ 1,572,157 $ - $ - At December 31, 2017 Within one year Between one More than Bank loan $ 123,637 $ - $ - Trade payables 474,334 - - Accrued liabilities 649,456 - - Customer deposits 362,829 - - Shareholder loan 10,383 - - Promissory note 1,500,000 - - $ 3,120,639 $ - $ - |
Schedule of classification of financial instruments | December 31, December 31, Cash and cash equivalents $ 18,102,872 $ 5,596,635 Trade receivables 51,164 - Trade payables (382,087 ) (138,794 ) $ 17,771,949 $ 5,457,841 |
Schedule of financial assets and liabilities that are denominated in US dollars | Financial assets included in the statement of financial position are as follows: December 31, December 31, Loans and receivables: Cash and cash equivalents $ 18,926,933 $ 8,610,996 Receivables 1,190,689 243,639 $ 20,117,622 $ 8,854,635 Financial liabilities included in the statement of financial position are as follows: December 31, December 31, Non-derivative financial liabilities: Bank loan $ - $ 123,637 Trade payable and accrued liabilities 1,262,861 1,123,790 Customer deposits 303,076 362,829 Shareholder loan 6,230 10,383 Promissory note - 1,500,000 Derivative financial liabilities: Derivative liability 4,752,875 3,655,690 $ 6,325,042 $ 6,776,329 |
Significant Accounting Polici_4
Significant Accounting Policies and Basis of Preparation (Details) | 12 Months Ended |
Dec. 31, 2018 | |
Furniture and equipment | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Class of plant and equipment, Amortization rate | 20% |
Computer equipment | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Class of plant and equipment, Amortization rate | 33% |
Computer software | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Class of plant and equipment, Amortization rate | 50% |
Vehicles | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Class of plant and equipment, Amortization rate | 33% |
Leasehold improvement | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Class of plant and equipment, Amortization rate | over term of lease |
Production tooling and molds | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Class of plant and equipment, Amortization rate | per unit produced |
Accounting standards issued b_2
Accounting standards issued but not yet effective (Detail Textuals) $ in Millions | Dec. 31, 2018CAD ($) |
Accounting Standards Issued but not Yet Effective [Abstract] | |
Recognise a lease liability | $ 2.2 |
Cash and cash equivalents (Deta
Cash and cash equivalents (Details) - CAD ($) | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Cash and cash equivalents [abstract] | ||||
Cash | $ 2,443,938 | $ 6,715,996 | ||
Cash equivalent | 16,482,995 | 1,895,000 | ||
Cash and cash equivalents | $ 18,926,933 | $ 8,610,996 | $ 3,916,283 | $ 106,357 |
Receivables (Details)
Receivables (Details) - CAD ($) | Dec. 31, 2018 | Dec. 31, 2017 |
Disclosure of detailed information about financial instruments [line items] | ||
Receivables | $ 1,190,689 | $ 243,639 |
Trade receivable [Member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Receivables | 84,443 | 92,912 |
Construction contract asset | ||
Disclosure of detailed information about financial instruments [line items] | ||
Receivables | 125,426 | 61,786 |
GST receivable | ||
Disclosure of detailed information about financial instruments [line items] | ||
Receivables | 278,182 | 84,566 |
SR&ED tax credits receivable | ||
Disclosure of detailed information about financial instruments [line items] | ||
Receivables | 675,000 | 0 |
Other receivable | ||
Disclosure of detailed information about financial instruments [line items] | ||
Receivables | $ 27,638 | $ 4,375 |
Plant and equipment (Details)
Plant and equipment (Details) - CAD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Cost: | |||
Beginning balance | $ 1,769,807 | $ 248,465 | |
Additions | 4,180,422 | 1,521,342 | |
Disposals | 0 | ||
Ending balance | 5,950,228 | 1,769,807 | |
Amortization: | |||
Beginning balance | 376,124 | 23,196 | |
Charge for the year | 250,338 | 352,928 | |
Ending balance | 626,462 | 376,124 | |
Net book value: | |||
Plant and equipment | 5,323,766 | 1,393,683 | $ 23,197 |
Furniture and equipment | |||
Cost: | |||
Beginning balance | 290,843 | 44,209 | |
Additions | 203,644 | 246,634 | |
Disposals | 0 | ||
Ending balance | 494,487 | 290,843 | |
Amortization: | |||
Beginning balance | 188,606 | 7,112 | |
Charge for the year | 42,192 | 181,494 | |
Ending balance | 230,798 | 188,606 | |
Net book value: | |||
Plant and equipment | 263,689 | 102,237 | |
Computer hardware and software | |||
Cost: | |||
Beginning balance | 73,654 | 18,897 | |
Additions | 59,749 | 54,757 | |
Disposals | 0 | ||
Ending balance | 133,403 | 73,654 | |
Amortization: | |||
Beginning balance | 27,147 | 2,514 | |
Charge for the year | 38,542 | 24,633 | |
Ending balance | 65,689 | 27,147 | |
Net book value: | |||
Plant and equipment | 67,714 | 46,507 | |
Vehicles | |||
Cost: | |||
Beginning balance | 390,050 | 173,213 | |
Additions | 0 | 216,837 | |
Disposals | (2,001) | ||
Ending balance | 388,049 | 390,050 | |
Amortization: | |||
Beginning balance | 85,764 | 11,666 | |
Charge for the year | 129,487 | 74,098 | |
Ending balance | 215,251 | 85,764 | |
Net book value: | |||
Plant and equipment | 172,798 | 304,286 | |
Leasehold improvements | |||
Cost: | |||
Beginning balance | 101,200 | 12,146 | |
Additions | 283,141 | 89,054 | |
Disposals | 0 | ||
Ending balance | 384,341 | 101,200 | |
Amortization: | |||
Beginning balance | 74,607 | 1,904 | |
Charge for the year | 40,117 | 72,703 | |
Ending balance | 114,724 | 74,607 | |
Net book value: | |||
Plant and equipment | 269,617 | 26,593 | |
Production tooling and molds | |||
Cost: | |||
Beginning balance | 914,060 | 0 | |
Additions | 3,635,888 | 914,060 | |
Disposals | 0 | ||
Ending balance | 4,549,948 | 914,060 | |
Amortization: | |||
Beginning balance | 0 | 0 | |
Charge for the year | 0 | 0 | |
Ending balance | 0 | 0 | |
Net book value: | |||
Plant and equipment | $ 4,549,948 | $ 914,060 |
Plant and equipment (Detail Tex
Plant and equipment (Detail Textuals) ¥ in Millions, $ in Millions | 1 Months Ended | 12 Months Ended | |||
Sep. 29, 2017CAD ($) | Dec. 31, 2018Vehicle | Oct. 16, 2017CAD ($)shares | Oct. 16, 2017CNY (¥)shares | Sep. 29, 2017CNY (¥) | |
Manufacturing Agreement | |||||
Plant and Equipment (Textual) | |||||
Description of purchase orders | Company's purchase orders as follows: 30% after Zongshen schedules production, and 70% after accepted vehicle delivery | ||||
Minimum purchase commitments 2019 | 5,000 | ||||
Minimum purchase commitments 2020 | 20,000 | ||||
Minimum purchase commitments 2021 | 50,000 | ||||
Manufacturing Agreement | Chongqing Zongshen Automobile Co., Ltd. | |||||
Plant and Equipment (Textual) | |||||
Description of manufacturing agreement | 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. At December31, 2018, the Company had paid 90% of prototype tooling and molds and 36% of the mass production tooling and molds | ||||
Manufacturing Agreement | Chongqing Zongshen Automobile Co., Ltd. | Prototype Tooling and Molds | |||||
Plant and Equipment (Textual) | |||||
Agreement estimated cost | $ 1.8 | ¥ 9.5 | |||
Manufacturing Agreement | Chongqing Zongshen Automobile Co., Ltd. | Mass Production Tooling and Molds | |||||
Plant and Equipment (Textual) | |||||
Agreement estimated cost | $ 7.8 | ¥ 39.3 | |||
Share Pledge Agreement | Chongqing Zongshen Automobile Co., Ltd. | Prototype Tooling and Molds | |||||
Plant and Equipment (Textual) | |||||
Agreement estimated cost | $ 1.8 | ¥ 9.5 | |||
Share pledge agreement common shares | shares | 400,000 | 400,000 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets and Acquisition of Intermeccanica (Details) - CAD ($) | Dec. 31, 2018 | Dec. 31, 2017 | Oct. 18, 2017 |
Fair value amounts of identifiable assets acquired and liabilities assumed | |||
Goodwill and other intangible assets | $ 1,239,123 | $ 1,260,014 | |
Intermeccanica | |||
Fair value of purchase consideration at October 18, 2017 | |||
Cash | $ 100,000 | ||
Promissory note | 1,500,000 | ||
Total consideration | 2,500,000 | ||
Fair value amounts of identifiable assets acquired and liabilities assumed | |||
Cash | 59,449 | ||
Inventory | 188,811 | ||
Plant and equipment | 24,282 | ||
Trades payable and accrued liabilities | (91,025) | ||
Deferred income tax | (149,794) | ||
Total net identifiable assets | 457,362 | ||
Goodwill and other intangible assets | 2,042,638 | ||
Receivables | 65,565 | ||
Prepaid expenses | 12,848 | ||
Intangible assets: | |||
Customer relationships | 87,000 | ||
Contracted backlog | 23,000 | ||
Non-compete covenants | 25,000 | ||
Trade name | 423,000 | ||
Customer deposits | (167,236) | ||
Shareholder loans | (43,538) | ||
Total | $ 2,500,000 |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets and Acquisition of Intermeccanica (Details 1) - CAD ($) | Dec. 31, 2018 | Dec. 31, 2017 |
Disclosure of reconciliation of changes in goodwill [line items] | ||
Goodwill and other intangible assets | $ 1,239,123 | $ 1,260,014 |
Identifiable intangibles on acquisition of Intermeccanica [Member] | ||
Disclosure of reconciliation of changes in goodwill [line items] | ||
Goodwill and other intangible assets | 529,067 | 558,000 |
Goodwill on acquisition of Intermeccanica [Member] | ||
Disclosure of reconciliation of changes in goodwill [line items] | ||
Goodwill and other intangible assets | 699,844 | 699,844 |
Other Intangibles [Member] | ||
Disclosure of reconciliation of changes in goodwill [line items] | ||
Goodwill and other intangible assets | $ 10,212 | $ 2,170 |
Goodwill and Intangible Asset_5
Goodwill and Intangible Assets and Acquisition of Intermeccanica (Detail Textuals) - Intermeccanica - CAD ($) | 1 Months Ended | 12 Months Ended | |
Oct. 18, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | |
Acquisition Of Intermeccanica (Textual) | |||
Debt instruments issued | $ 10,000,000 | ||
Note bears interest | 5.00% | ||
Promissory note payable in installments | $ 500,000 | ||
Note paid date | January 28, 2018 | ||
Recoverable amount of cash- generating determined to fair value less costs to sell | $ 1,157,206 | ||
Impairment in net loss | $ 1,342,794 | ||
Total purchase consideration | $ 2,500,000 | ||
Initial payment | 100,000 | ||
Additional cash paid prior to acquisition | 200,000 | ||
Promissory note | 1,500,000 | ||
Amount paid for acquisition | $ 700,000 | ||
Amortization relating to acquired intangible assets | $ 26,454 |
Trade payables and accrued li_3
Trade payables and accrued liabilities (Details) - CAD ($) | Dec. 31, 2018 | Dec. 31, 2017 |
Trade Payables and Accrued Liabilities [Abstract] | ||
Trade payables | $ 635,622 | $ 457,520 |
Wages payables | 80,573 | 62,110 |
Due to related parties (Note 18) | 83,331 | 16,814 |
Accrued liabilities | 463,335 | 587,346 |
Trade payables and accrued liabilities | $ 1,262,861 | $ 1,123,790 |
Commitments (Details)
Commitments (Details) - CAD ($) | Dec. 31, 2018 | Dec. 31, 2017 |
Commitments [Abstract] | ||
Payable not later than one year | $ 831,854 | $ 310,034 |
Payable later than one year and not later than five years | 1,316,980 | 507,036 |
Payable later than five years | 0 | 0 |
Non-cancellable operating leases | $ 2,148,834 | $ 817,070 |
Commitments (Detail Textuals)
Commitments (Detail Textuals) | 12 Months Ended |
Dec. 31, 2018 | |
Commitments [Abstract] | |
Term of leases expired | The term of the leases expire on November 1, 2020 and July 1, 2020 with the Company holding an option to renew for a further five years for the office space. |
Income tax recovery and defer_2
Income tax recovery and deferred tax assets and liabilities (Details) - CAD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income tax recovery and deferred tax assets and liabilities [Abstract] | |||
Loss before tax | $ (10,039,812) | $ (11,366,372) | $ (8,973,347) |
Statutory tax rate | 27.00% | 26.00% | 26.00% |
Expected income tax recovery at the statutory tax rate | $ (2,710,749) | $ (2,955,257) | $ (2,333,070) |
Stock-based compensation | 871,697 | 231,273 | 1,228,726 |
Changes in fair value of warrant derivative | (2,080,904) | 48,430 | 0 |
Share issue costs and other | (969,673) | 256,445 | (231,643) |
Effect of change in tax rate | 0 | (149,561) | 0 |
SR&ED expenditures | 0 | 183,351 | 0 |
Temporary differences not recognized | 4,887,962 | 2,385,319 | 1,335,987 |
Income tax recovery | $ (1,667) | $ 0 | $ 0 |
Income tax recovery and defer_3
Income tax recovery and deferred tax assets and liabilities (Details 1) - CAD ($) | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Income tax recovery and deferred tax assets and liabilities [Abstract] | |||
Non-capital loss carry-forwards | $ 25,284,214 | $ 11,436,565 | $ 5,019,398 |
Property, plant and equipment | 5,323,766 | 1,393,684 | 23,197 |
Share issue costs | 4,969,038 | 1,983,154 | 737,637 |
SR&ED expenditures | 2,331,495 | 1,397,672 | 0 |
Other | (411,487) | (558,000) | 0 |
Total | 32,504,223 | 14,400,662 | 5,780,232 |
Deferred tax assets not recognized | (33,059,017) | (14,955,454) | (5,780,232) |
Deferred tax liability | (149,794) | (149,794) | 0 |
Deferred tax liability (tax effected at 27%) | $ (149,794) | $ (149,794) | $ 0 |
Income tax recovery and defer_4
Income tax recovery and deferred tax assets and liabilities (Detail Textuals) | 12 Months Ended |
Dec. 31, 2018 | |
Income tax recovery and deferred tax assets and liabilities [Abstract] | |
Tax effected percentage | 27.00% |
Non-capital losses expired | The non-capital losses expire between 2034 and 2038. |
Derivative liability (Details)
Derivative liability (Details) - 12 months ended Dec. 31, 2018 | CAD ($) | USD ($) |
Derivative Liability [Abstract] | ||
Balance, beginning | $ 3,655,690 | |
Warrants issued | 8,935,289 | |
Warrants exercised | $ (131,053) | |
Changes in fair value of derivative liabilities | (7,707,051) | |
Balance, ending | $ 4,752,875 |
Derivative liability (Details 1
Derivative liability (Details 1) | 12 Months Ended |
Dec. 31, 2018CAD ($) | |
Disclosure of significant unobservable inputs used in fair value measurement of equity [line items] | |
Fair value of non-transferrable warrants outstanding | $ 2,026,119 |
Risk-free interest rate | 1.86% |
Expected share price volatility | 60.00% |
Black-Scholes Option Pricing Model | |
Disclosure of significant unobservable inputs used in fair value measurement of equity [line items] | |
Fair value of non-transferrable warrants outstanding | $ 5,845,587 |
Risk-free interest rate | 2.32% |
Expected share price volatility | 60.00% |
Derivative liability (Detail Te
Derivative liability (Detail Textuals) | 12 Months Ended | |
Dec. 31, 2018CAD ($)shares | Dec. 31, 2018$ / sharesshares | |
Derivative Liability [Line Items] | ||
Number of shares issued | 264,232 | 264,232 |
Warrants description | Warrants for shares at USD $4.25 were exercised | |
Issue costs allocated to derivative liability | $ | $ 1,493,554 | |
Warrants issuance price per share | $ / shares | $ 0.50 | |
Warrants price per share | $ / shares | $ 0.45 | |
Non-transferrable warrants | ||
Derivative Liability [Line Items] | ||
Number of shares issued | 200,000 | 200,000 |
Warrants description | Warrants exercisable at USD $16.80, which expire on January 22, 2021 | |
Transferrable warrants | ||
Derivative Liability [Line Items] | ||
Number of shares issued | 4,706,000 | 4,706,000 |
Warrants description | Warrants exercisable at USD $4.25, which expire on August 8, 2023 | |
Warrants | ||
Derivative Liability [Line Items] | ||
Number of shares issued | 4,250,000 | 4,250,000 |
Warrants description | Warrants exercisable at USD $2.56 which expiry on May 9, 2024 |
Share capital (Details)
Share capital (Details) - Stock options - $ / shares | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of classes of share capital [line items] | ||
Number of options, Options outstanding, beginning | 28,598,750 | 28,087,500 |
Number of options, Options granted | 1,307,424 | 560,000 |
Number of options, Options exercised | (6,198) | (6,250) |
Number of options, Options expired and forfeited | (143,802) | (42,500) |
Number of options, Options outstanding, ending | 4,756,174 | 28,598,750 |
Weighted average exercise price, Options outstanding, beginning | $ 0.40 | $ 0.38 |
Weighted average exercise price, Options granted | 9.29 | 2 |
Weighted average exercise price, Options exercised | 2 | 0.30 |
Weighted average exercise price, Options expired and forfeited | 3.03 | 2 |
Weighted average exercise price, Options outstanding, ending | 2.73 | $ 0.40 |
Weighted average exercise price, Options cancelled | $ 0.37 | |
Number of options, Options cancelled | (25,000,000) |
Share capital (Details 1)
Share capital (Details 1) - Stock options | 12 Months Ended | |
Dec. 31, 2018$ / sharesshares | Dec. 31, 2018$ / sharesshares | |
Disclosure of classes of share capital [line items] | ||
Weighted average contractual life | 4 years 3 months 18 days | |
Number of options outstanding | 4,756,174 | 4,756,174 |
Number of options exercisable | 3,742,275 | 3,742,275 |
Exercise price $ 0.30 | ||
Disclosure of classes of share capital [line items] | ||
Exercise price | $ / shares | $ 0.30 | |
Weighted average contractual life | 3 years 5 months 12 days | |
Number of options outstanding | 2,045,455 | 2,045,455 |
Number of options exercisable | 2,045,455 | 2,045,455 |
Exercise price $ 0.30 | ||
Disclosure of classes of share capital [line items] | ||
Exercise price | $ / shares | $ 0.30 | |
Weighted average contractual life | 3 years 7 months 13 days | |
Number of options outstanding | 308,522 | 308,522 |
Number of options exercisable | 263,529 | 263,529 |
Exercise price $ 0.80 | ||
Disclosure of classes of share capital [line items] | ||
Exercise price | $ / shares | $ 0.80 | |
Weighted average contractual life | 3 years 11 months 9 days | |
Number of options outstanding | 677,273 | 677,273 |
Number of options exercisable | 522,065 | 522,065 |
Exercise price $ 0.80 | ||
Disclosure of classes of share capital [line items] | ||
Exercise price | $ / shares | $ 0.80 | |
Weighted average contractual life | 4 years 2 months 5 days | |
Number of options outstanding | 12,500 | 12,500 |
Number of options exercisable | 8,854 | 8,854 |
Exercise price $ 2.00 | ||
Disclosure of classes of share capital [line items] | ||
Exercise price | $ / shares | $ 2 | |
Weighted average contractual life | 4 years 5 months 19 days | |
Number of options outstanding | 12,500 | 12,500 |
Number of options exercisable | 8,594 | 8,594 |
Exercise price $ 2.00 | ||
Disclosure of classes of share capital [line items] | ||
Exercise price | $ / shares | $ 2 | |
Weighted average contractual life | 5 years 1 month 17 days | |
Number of options outstanding | 357,500 | 357,500 |
Number of options exercisable | 243,646 | 243,646 |
Exercise price $ 2.00 | ||
Disclosure of classes of share capital [line items] | ||
Exercise price | $ / shares | $ 2 | |
Weighted average contractual life | 5 years 7 months 10 days | |
Number of options outstanding | 50,000 | 50,000 |
Number of options exercisable | 17,708 | 17,708 |
Exercise price $ 9.60 | ||
Disclosure of classes of share capital [line items] | ||
Exercise price | $ / shares | $ 9.60 | |
Weighted average contractual life | 6 years 7 days | |
Number of options outstanding | 337,500 | 337,500 |
Number of options exercisable | 110,000 | 110,000 |
Exercise price $ 9.00 | ||
Disclosure of classes of share capital [line items] | ||
Exercise price | $ / shares | $ 9 | |
Weighted average contractual life | 6 years 3 months 18 days | |
Number of options outstanding | 150,000 | 150,000 |
Number of options exercisable | 112,500 | 112,500 |
Exercise price $ 9.16 | ||
Disclosure of classes of share capital [line items] | ||
Exercise price | $ / shares | $ 9.16 | |
Weighted average contractual life | 6 years 7 months 10 days | |
Number of options outstanding | 275,000 | 275,000 |
Number of options exercisable | 0 | 0 |
Exercise price $ 1.53 | ||
Disclosure of classes of share capital [line items] | ||
Exercise price | $ / shares | $ 1.53 | |
Weighted average contractual life | 4 years 10 months 21 days | |
Number of options outstanding | 120,000 | 120,000 |
Number of options exercisable | 0 | 0 |
Exercise price $ 5.00 | ||
Disclosure of classes of share capital [line items] | ||
Exercise price | $ / shares | $ 5 | |
Weighted average contractual life | 4 years 11 months 1 day | |
Number of options outstanding | 409,924 | 409,924 |
Number of options exercisable | 409,924 | 409,924 |
Share capital (Details 2)
Share capital (Details 2) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of classes of share capital [line items] | ||
Expected share price volatility | 60.00% | |
Risk-free interest rate | 1.86% | |
Stock options | ||
Disclosure of classes of share capital [line items] | ||
Expected share price volatility | 60.00% | 60.00% |
Dividend rate | 0.00% | 0.00% |
Expected life of options | 5 years | 5 years |
Stock options | Minimum | ||
Disclosure of classes of share capital [line items] | ||
Risk-free interest rate | 1.91% | 1.02% |
Stock options | Maximum | ||
Disclosure of classes of share capital [line items] | ||
Risk-free interest rate | 2.90% | 1.43% |
Share capital (Details 3)
Share capital (Details 3) - $ / shares | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of classes of share capital [line items] | ||
Number of warrants, Warrants issued | 1,020,094 | |
Number of warrants, Warrants exercised | (294,232) | |
Warrants | ||
Disclosure of classes of share capital [line items] | ||
Number of warrants, Warrants outstanding, beginning | 11,856,857 | 9,266,793 |
Number of warrants, Warrants issued | 10,807,093 | 2,592,564 |
Number of warrants, Warrants exercised | (294,232) | (2,500) |
Number of warrants, Warrants outstanding, ending | 22,369,718 | 11,856,857 |
Weighted average exercise price, Warrants outstanding, beginning | $ 4.70 | $ 3.28 |
Weighted average exercise price, Warrants issued | 5.36 | 9.82 |
Weighted average exercise price, Warrants exercised | 5.08 | 4 |
Weighted average exercise price, Warrants outstanding, ending | $ 5.03 | $ 4.70 |
Share capital (Details 4)
Share capital (Details 4) - Warrants - $ / shares | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of classes of share capital [line items] | |||
Number of warrants outstanding | 22,369,718 | 11,856,857 | 9,266,793 |
Non-Transferable Warrants $0.80 CAD - $16.00 CAD | |||
Disclosure of classes of share capital [line items] | |||
Weighted average contractual life | 2 years 9 months 4 days | ||
Number of warrants outstanding | 11,457,559 | ||
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 | 4 years 7 months 24 days | ||
Number of warrants outstanding | 5,764,492 | ||
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 $4.25 USD | |||
Disclosure of classes of share capital [line items] | |||
Weighted average contractual life | 4 years 7 months 10 days | ||
Number of warrants outstanding | 5,147,668 |
Share capital (Detail Textuals)
Share capital (Detail Textuals) - CAD ($) | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Disclosure of classes of share capital [line items] | ||||
Number of shares issued | 264,232 | |||
Gross proceeds from issue of shares issued and transferrable warrants | $ 10,539,366 | $ 6,771,033 | ||
Number of warrants issued | 1,020,094 | |||
Fair value of warrants issued | $ 940,070 | |||
Shares issued for finder's fees fair value | 23,678 | 712,745 | 1,342,600 | |
Stock-based compensation expense | $ 3,228,508 | $ 889,511 | $ 1,461,189 | |
Weighted average number of common shares outstanding | 26,582,664 | 21,818,315 | 16,342,434 | |
Number of warrants exercised | 294,232 | |||
Net and comprehensive loss | $ 10,038,145 | $ 11,366,372 | $ 8,973,347 | |
Shares issued for stock option exercised (Note 12, 13) | $ 12,395 | |||
Number of warrants exercisable | 212,500 | |||
Shares issued pursuant to exercise of warrants | $ 1,639,449 | |||
Stock options | ||||
Disclosure of classes of share capital [line items] | ||||
Stock options exercisable period | 7 years | |||
Maximum number of common shares reserved for issuance | 30,000,000 | |||
Weighted average share price, share options granted | $ 2.27 | $ 0.74 | ||
Warrants | ||||
Disclosure of classes of share capital [line items] | ||||
Number of shares issued | 4,250,000 | |||
Number of warrants issued | 10,807,093 | 2,592,564 | ||
Number of warrants exercised | 294,232 | 2,500 | ||
Share capital | ||||
Disclosure of classes of share capital [line items] | ||||
Number of shares issued | 32,332,343 | 23,794,106 | ||
Number of shares outstanding | 32,332,343 | 23,794,106 | 20,891,794 | 13,391,813 |
Number of shares issued during the year | 1,910,250 | 6,787,600 | ||
Number of transferrable warrants | 5,411,900 | |||
Gross proceeds from issue of shares issued and transferrable warrants | $ 24,091,775 | $ 10,640,866 | $ 6,771,033 | |
Number of common stock issued for services | 207,000 | |||
Fair value of common shares for services | $ 1,033,611 | |||
Share issue related cost | $ 2,916,165 | |||
Shares issued for finder's fees | 2,286 | 107,005 | 636,756 | |
Shares issued for finder's fees fair value | $ 23,678 | $ 709,522 | $ 823,512 | |
Warrants to acquire common shares for services | 75,000 | |||
Shares issued for stock option exercised (Note 12, 13) | $ 31,669 | |||
Number of shares issued for stock option exercised | 6,198 | |||
Shares issued pursuant to exercise of warrants | $ 1,639,449 | |||
Shares issued for cash, net of derivative liability, shares | 8,028,521 | |||
Share-based payment reserve | ||||
Disclosure of classes of share capital [line items] | ||||
Shares issued for finder's fees fair value | $ 3,223 | $ 519,088 | ||
Shares issued for stock option exercised (Note 12, 13) | $ (19,274) |
General and administrative ex_3
General and administrative expenses (Details) - CAD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
General and Administrative Expenses [Abstract] | |||
Rent | $ 488,273 | $ 269,716 | $ 141,957 |
Legal and professional | 1,491,818 | 912,347 | 643,725 |
Salaries | 759,680 | 326,770 | 120,558 |
General and administrative expenses | 5,490,938 | 2,373,251 | 1,205,835 |
Office expenses | 944,771 | 345,986 | 113,158 |
Consulting fees | 1,191,593 | 405,176 | 186,437 |
Investor relations | $ 614,803 | $ 113,256 | $ 0 |
Research and development expe_3
Research and development expenses (Details) - CAD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Research and Development Expenses [Abstract] | |||
Labour | $ 3,581,970 | $ 1,971,945 | $ 1,715,562 |
Materials | 3,393,295 | 2,763,355 | 1,266,730 |
Government grants | (1,409,229) | (304,914) | (203,997) |
Research and development expense | $ 5,566,036 | $ 4,430,386 | $ 2,778,295 |
Sales and marketing expenses (D
Sales and marketing expenses (Details) - CAD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Sales and Marketing Expenses [Abstract] | |||
Consulting | $ 531,810 | $ 143,275 | $ 35,847 |
Marketing | 461,731 | 182,723 | 93,345 |
Salaries | 393,360 | 305,383 | 80,263 |
Total sales and marketing expenses | $ 1,386,901 | $ 631,381 | $ 209,455 |
Segmented information (Details)
Segmented information (Details) - CAD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of operating segments [line items] | |||
Revenue | $ 777,302 | $ 109,173 | |
Gross profit | 202,130 | 45,223 | |
Operating expenses | 17,060,535 | 9,534,379 | $ 8,942,022 |
Net and comprehensive loss | (10,038,145) | (11,366,372) | (8,973,347) |
Inventory | 420,737 | 232,903 | |
Plant and equipment | 5,323,766 | 1,393,683 | $ 23,197 |
Electric Vehicles | |||
Disclosure of operating segments [line items] | |||
Revenue | 0 | 0 | |
Gross profit | 0 | 0 | |
Operating expenses | 16,604,687 | 9,473,794 | |
Other items | (6,841,211) | 536,414 | |
Income tax | 0 | 0 | |
Net and comprehensive loss | 9,763,476 | 10,010,208 | |
Inventory | 189,182 | 0 | |
Plant and equipment | 5,299,857 | 1,370,350 | |
Custom Built Vehicles | |||
Disclosure of operating segments [line items] | |||
Revenue | 777,302 | 109,173 | |
Gross profit | 202,130 | 45,223 | |
Operating expenses | 455,848 | 60,585 | |
Other items | 22,618 | 1,340,802 | |
Income tax | (1,667) | 0 | |
Net and comprehensive loss | 274,669 | 1,356,164 | |
Inventory | 231,555 | 232,903 | |
Plant and equipment | $ 23,909 | $ 23,333 |
Segmented information (Detail T
Segmented information (Detail Textuals) | 12 Months Ended |
Dec. 31, 2018Segments | |
Segmented Information [Abstract] | |
Number of reportable business segments | 2 |
Related party transactions (Det
Related party transactions (Details) - CAD ($) | Dec. 31, 2018 | Dec. 31, 2017 |
Disclosure of transactions between related parties [line items] | ||
Amounts due to related parties | $ 89,561 | $ 27,197 |
Shareholder loan | ||
Disclosure of transactions between related parties [line items] | ||
Amounts due to related parties | 6,230 | 10,383 |
Due to related parties (Note 8) | ||
Disclosure of transactions between related parties [line items] | ||
Amounts due to related parties | $ 83,331 | $ 16,814 |
Related party transactions (D_2
Related party transactions (Details 1) - CAD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Key management personnel compensation [line items] | |||
Consulting fees | $ 335,114 | $ 185,000 | $ 136,500 |
Salary | 459,440 | 280,167 | 45,000 |
Directors fees | 165,336 | 0 | 0 |
Deferred salary for CEO | 0 | 0 | 30,000 |
Stock-based compensation | 1,497,881 | 659,228 | 1,238,013 |
Key management personnel compensation | $ 2,457,771 | $ 1,124,395 | $ 1,449,513 |
Financial instruments and fin_3
Financial instruments and financial risk management (Details) - CAD ($) | Dec. 31, 2018 | Dec. 31, 2017 |
Within one year | ||
Disclosure of maturity analysis for derivative financial liabilities [line items] | ||
Total non-derivative financial liabilities | $ 1,572,157 | $ 3,120,639 |
Between one and five years | ||
Disclosure of maturity analysis for derivative financial liabilities [line items] | ||
Total non-derivative financial liabilities | 0 | 0 |
More than five years | ||
Disclosure of maturity analysis for derivative financial liabilities [line items] | ||
Total non-derivative financial liabilities | 0 | 0 |
Bank loan | Within one year | ||
Disclosure of maturity analysis for derivative financial liabilities [line items] | ||
Total non-derivative financial liabilities | 123,637 | |
Bank loan | Between one and five years | ||
Disclosure of maturity analysis for derivative financial liabilities [line items] | ||
Total non-derivative financial liabilities | 0 | |
Bank loan | More than five years | ||
Disclosure of maturity analysis for derivative financial liabilities [line items] | ||
Total non-derivative financial liabilities | 0 | |
Trade payables | Within one year | ||
Disclosure of maturity analysis for derivative financial liabilities [line items] | ||
Total non-derivative financial liabilities | 718,953 | 474,334 |
Trade payables | Between one and five years | ||
Disclosure of maturity analysis for derivative financial liabilities [line items] | ||
Total non-derivative financial liabilities | 0 | 0 |
Trade payables | More than five years | ||
Disclosure of maturity analysis for derivative financial liabilities [line items] | ||
Total non-derivative financial liabilities | 0 | 0 |
Accrued liabilities | Within one year | ||
Disclosure of maturity analysis for derivative financial liabilities [line items] | ||
Total non-derivative financial liabilities | 543,908 | 649,456 |
Accrued liabilities | Between one and five years | ||
Disclosure of maturity analysis for derivative financial liabilities [line items] | ||
Total non-derivative financial liabilities | 0 | 0 |
Accrued liabilities | More than five years | ||
Disclosure of maturity analysis for derivative financial liabilities [line items] | ||
Total non-derivative financial liabilities | 0 | 0 |
Customer deposits | Within one year | ||
Disclosure of maturity analysis for derivative financial liabilities [line items] | ||
Total non-derivative financial liabilities | 303,076 | 362,829 |
Customer deposits | Between one and five years | ||
Disclosure of maturity analysis for derivative financial liabilities [line items] | ||
Total non-derivative financial liabilities | 0 | 0 |
Customer deposits | More than five years | ||
Disclosure of maturity analysis for derivative financial liabilities [line items] | ||
Total non-derivative financial liabilities | 0 | 0 |
Shareholder loan | Within one year | ||
Disclosure of maturity analysis for derivative financial liabilities [line items] | ||
Total non-derivative financial liabilities | 6,230 | 10,383 |
Shareholder loan | Between one and five years | ||
Disclosure of maturity analysis for derivative financial liabilities [line items] | ||
Total non-derivative financial liabilities | 0 | 0 |
Shareholder loan | More than five years | ||
Disclosure of maturity analysis for derivative financial liabilities [line items] | ||
Total non-derivative financial liabilities | $ 0 | 0 |
Promissory note | Within one year | ||
Disclosure of maturity analysis for derivative financial liabilities [line items] | ||
Total non-derivative financial liabilities | 1,500,000 | |
Promissory note | Between one and five years | ||
Disclosure of maturity analysis for derivative financial liabilities [line items] | ||
Total non-derivative financial liabilities | 0 | |
Promissory note | More than five years | ||
Disclosure of maturity analysis for derivative financial liabilities [line items] | ||
Total non-derivative financial liabilities | $ 0 |
Financial instruments and fin_4
Financial instruments and financial risk management (Details 1) - CAD ($) | Dec. 31, 2018 | Dec. 31, 2017 |
Disclosure of Financial Assets and Liabilities [line items] | ||
Financial assets and liabilities | $ 17,771,949 | $ 5,457,841 |
Cash and cash equivalents | ||
Disclosure of Financial Assets and Liabilities [line items] | ||
Financial assets and liabilities | 18,102,872 | 5,596,635 |
Trade receivables | ||
Disclosure of Financial Assets and Liabilities [line items] | ||
Financial assets and liabilities | 51,164 | 0 |
Trade payables [Member] | ||
Disclosure of Financial Assets and Liabilities [line items] | ||
Financial assets and liabilities | $ (382,087) | $ (138,794) |
Financial instruments and fin_5
Financial instruments and financial risk management (Details 2) - CAD ($) | Dec. 31, 2018 | Dec. 31, 2017 |
Disclosure of detailed information about financial instruments [line items] | ||
Financial liabilities | $ 6,325,042 | $ 6,776,329 |
Non-derivative financial liabilities | Bank loan | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial liabilities | 0 | 123,637 |
Non-derivative financial liabilities | Trade payable and accrued liabilities | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial liabilities | 1,262,861 | 1,123,790 |
Non-derivative financial liabilities | Customer deposits | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial liabilities | 303,076 | 362,829 |
Non-derivative financial liabilities | Shareholder loan | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial liabilities | 6,230 | 10,383 |
Non-derivative financial liabilities | Promissory note | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial liabilities | 0 | 1,500,000 |
Derivative financial liabilities | Derivative liability | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial liabilities | 4,752,875 | 3,655,690 |
Loans and receivables | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial assets | 20,117,622 | 8,854,635 |
Loans and receivables | Cash and cash equivalents | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial assets | 18,926,933 | 8,610,996 |
Loans and receivables | Receivables | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial assets | $ 1,190,689 | $ 243,639 |
Financial instruments and fin_6
Financial instruments and financial risk management (Detail Textuals) - CAD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of risk management strategy related to hedge accounting [line items] | |||
Impact of net loss | $ 605,096 | $ (20,049) | $ (5,417) |
Derivate liability | $ 575,723 | ||
Percentage of volatility used was increased | 10.00% | ||
Interest rate risk | |||
Disclosure of risk management strategy related to hedge accounting [line items] | |||
Impact of net loss | $ 164,830 | $ 18,950 | |
Change in market interest rates | 1.00% | 1.00% | |
Foreign exchange risk | |||
Disclosure of risk management strategy related to hedge accounting [line items] | |||
Impact of net loss | $ 1,777,195 | $ 545,784 | |
Change in the US dollars to Canadian dollar exchange rate | 10.00% | 10.00% |
Subsequent events (Details)
Subsequent events (Details) | 12 Months Ended | |||
Dec. 31, 2018CAD ($)Investors$ / sharesshares | Dec. 31, 2018USD ($)Investors$ / sharesshares | Dec. 31, 2017CAD ($) | Dec. 31, 2016CAD ($) | |
Subsequent Events (Textual) | ||||
Amount Received | $ | $ 31,845,439 | $ 10,837,902 | $ 8,063,633 | |
Warrants price per share | $ / shares | $ 0.45 | |||
Number of shares issued | 264,232 | |||
January 15, 2019 | ||||
Subsequent Events (Textual) | ||||
Consulting agreements of common shares | 32,000 | 32,000 | ||
January 15, 2019 One | ||||
Subsequent Events (Textual) | ||||
Description of management agreements | Board of Directors approved 4 management agreements dated January 1, 2019 for the following: Jerry Kroll, Henry Reisner, Bal Bhullar and Isaac Moss | Board of Directors approved 4 management agreements dated January 1, 2019 for the following: Jerry Kroll, Henry Reisner, Bal Bhullar and Isaac Moss | ||
January 24, 2019 | ||||
Subsequent Events (Textual) | ||||
Consulting agreements of common shares | 18,060 | 18,060 | ||
January 31, 2019 | ||||
Subsequent Events (Textual) | ||||
Settle debt for legal services | $ | $ 50,000 | |||
Number of shares issued | 29,950 | |||
February 14, 2019 | CEO | ||||
Subsequent Events (Textual) | ||||
Amount Received | $ | $ 20,000 | |||
Warrants price per share | $ / shares | $ 0.80 | |||
Number of shares issued | 25,000 | |||
February 14, 2019 One | ||||
Subsequent Events (Textual) | ||||
Consulting agreements of common shares | 3,010 | 3,010 | ||
February 15, 2019 | Investor | ||||
Subsequent Events (Textual) | ||||
Amount Received | $ | $ 180,000 | |||
Warrants price per share | $ / shares | $ 0.80 | |||
Number of shares issued | 225,000 | |||
February 20, 2019 | Investor | ||||
Subsequent Events (Textual) | ||||
Amount Received | $ | $ 2,424,625 | |||
Warrants price per share | $ / shares | $ 4.25 | |||
Number of shares issued | 570,500 | |||
Number of investor | Investors | 3 | 3 | ||
February 25, 2019 | Investor | ||||
Subsequent Events (Textual) | ||||
Amount Received | $ | $ 322,150 | |||
Warrants price per share | $ / shares | $ 4.25 | |||
Number of shares issued | 75,800 | |||
Number of investor | Investors | 2 | 2 | ||
March 19, 2019 | ||||
Subsequent Events (Textual) | ||||
Granted stock options to acquire common shares | 1,228,182 | 1,228,182 | ||
Granted stock options exercise price per share | $ / shares | $ 3.40 | |||
Granted stock options exercise period | 7 years | 7 years | ||
March 27, 2019 | ||||
Subsequent Events (Textual) | ||||
Number of shares issued | 3,333,334 | |||
Common shares price per share | $ / shares | $ 3.60 | |||
Proceeds for stock options | $ | $ 12,000,000 | |||
Share issuance costs and fees | $ | $ 1,040,000 | |||
Percentages of placement fee | 7.00% | 7.00% |