Document And Entity Information
Document And Entity Information - shares | 9 Months Ended | |
Mar. 31, 2021 | May 13, 2021 | |
Document Information Line Items | ||
Entity Registrant Name | InMed Pharmaceuticals Inc. | |
Document Type | 10-Q | |
Current Fiscal Year End Date | --06-30 | |
Entity Common Stock, Shares Outstanding | 8,050,707 | |
Amendment Flag | false | |
Entity Central Index Key | 0001728328 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Document Period End Date | Mar. 31, 2021 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q3 | |
Entity Small Business | true | |
Entity Emerging Growth Company | true | |
Entity Shell Company | false | |
Entity Ex Transition Period | false | |
Entity File Number | 001-39685 | |
Entity Incorporation, State or Country Code | A1 | |
Entity Interactive Data Current | Yes |
Condensed Consolidated Interim
Condensed Consolidated Interim Balance Sheets (Unaudited) - USD ($) | Mar. 31, 2021 | Jun. 30, 2020 |
Current | ||
Cash and cash equivalents | $ 9,454,113 | $ 5,805,809 |
Short-term investments | 45,765 | 42,384 |
Accounts receivable | 70,300 | 45,344 |
Prepaids and other assets | 1,326,526 | 418,920 |
Total current assets | 10,896,704 | 6,312,457 |
Non-Current | ||
Property and equipment, net | 347,892 | 403,485 |
Intangible assets, net | 1,085,748 | 1,086,655 |
Other assets | 14,655 | |
Total Assets | 12,344,999 | 7,802,597 |
Current | ||
Accounts payables and accrued liabilities | 1,635,477 | 1,607,303 |
Current portion of lease obligations | 78,818 | 68,965 |
Total current liabilities | 1,714,295 | 1,676,268 |
Non-current | ||
Lease obligations | 216,234 | 248,011 |
Total Liabilities | 1,930,529 | 1,924,279 |
Shareholders' Equity | ||
Common shares, no par value, unlimited authorized shares: 8,050,707 (June 30, 2020 - 5,220,707) issued and outstanding | 60,587,417 | 53,065,240 |
Additional paid-in capital | 21,292,201 | 17,764,333 |
Accumulated deficit | (71,593,717) | (64,649,381) |
Accumulated other comprehensive income (loss) | 128,569 | (301,874) |
Total Shareholders' Equity | 10,414,470 | 5,878,318 |
Total Liabilities and Shareholders' Equity | $ 12,344,999 | $ 7,802,597 |
Condensed Consolidated Interi_2
Condensed Consolidated Interim Balance Sheets (Unaudited) (Parentheticals) - $ / shares | 9 Months Ended | 12 Months Ended |
Mar. 31, 2021 | Jun. 30, 2020 | |
Statement of Financial Position [Abstract] | ||
Common stock par value (in Dollars per share) | ||
Common stock, shares authorized | Unlimited | Unlimited |
Common stock, shares issued | 8,050,707 | 5,220,707 |
Common stock, shares outstanding | 8,050,707 | 5,220,707 |
Condensed Consolidated Interi_3
Condensed Consolidated Interim Statements of Operations and Comprehensive Loss (Unaudited) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2021 | Mar. 31, 2020 | |
Operating Expenses | ||||
Research and development and patents | $ 1,772,593 | $ 1,274,913 | $ 3,621,697 | $ 4,843,656 |
General and administrative | 1,333,725 | 902,289 | 2,918,067 | 2,661,545 |
Amortization and depreciation | 27,421 | 27,113 | 92,218 | 85,572 |
Total operating expenses | 3,133,739 | 2,204,315 | 6,631,982 | 7,590,773 |
Other Income (Loss) | ||||
Interest income | 3,797 | 26,330 | 11,192 | 125,231 |
Finance expense | (360,350) | |||
Unrealized gain on derivative warrants liability | 242,628 | |||
Foreign exchange gain (loss) | 28,467 | 153,927 | (205,824) | 142,677 |
Net loss for the period | (3,101,475) | (2,024,058) | (6,944,336) | (7,322,865) |
Other Comprehensive Loss | ||||
Foreign currency translation (loss) gain | (717,510) | 430,443 | (685,834) | |
Total comprehensive loss for the period | $ (3,101,475) | $ (2,741,568) | $ (6,513,893) | $ (8,008,699) |
Net loss per share for the year | ||||
Basic and diluted (in Dollars per share) | $ (0.41) | $ (0.39) | $ (1.11) | $ (1.40) |
Weighted average outstanding common shares | ||||
Basic and diluted (in Shares) | 7,549,040 | 5,220,707 | 6,277,824 | 5,220,707 |
Condensed Consolidated Interi_4
Condensed Consolidated Interim Statements of Shareholders’ Equity (unaudited) - USD ($) | Common Shares | Additional Paid-in Capital | Accumulated Deficit | Accumulated Other Comprehensive Income (Loss) - Foreign Exchange | Total |
Balance at Jun. 30, 2019 | $ 53,065,240 | $ 16,769,932 | $ (55,710,232) | $ 117,964 | $ 14,242,904 |
Balance (in Shares) at Jun. 30, 2019 | 5,220,707 | ||||
Loss and comprehensive income (loss) for the period | (5,298,807) | 31,676 | (5,267,131) | ||
Share-based compensation | 634,435 | 634,435 | |||
Balance at Dec. 31, 2019 | $ 53,065,240 | 17,404,367 | (61,009,039) | 149,640 | 9,610,208 |
Balance (in Shares) at Dec. 31, 2019 | 5,220,707 | ||||
Loss and comprehensive income (loss) for the period | (2,024,058) | (717,510) | (2,741,568) | ||
Share-based compensation | 203,869 | 203,869 | |||
Activity for the month | 838,304 | (7,322,865) | (685,834) | (7,170,395) | |
Balance at Mar. 31, 2020 | $ 53,065,240 | 17,608,236 | (63,033,097) | (567,870) | 7,072,509 |
Balance (in Shares) at Mar. 31, 2020 | 5,220,707 | ||||
Balance at Jun. 30, 2020 | $ 53,065,240 | 17,764,333 | (64,649,381) | (301,874) | 5,878,318 |
Balance (in Shares) at Jun. 30, 2020 | 5,220,707 | ||||
Public offering | $ 6,052,000 | 6,052,000 | |||
Public offering (in Shares) | 1,780,000 | ||||
Share issuance costs | $ (1,109,128) | (1,109,128) | |||
Loss and comprehensive income (loss) for the period | (3,842,861) | 430,443 | (3,412,418) | ||
Share-based compensation | 182,041 | 182,041 | |||
Balance at Dec. 31, 2020 | $ 58,008,112 | 17,946,374 | (68,492,242) | 128,569 | 7,590,813 |
Balance (in Shares) at Dec. 31, 2020 | 7,000,707 | ||||
Private placement | $ 2,917,157 | 1,545,343 | 4,462,500 | ||
Private placement (in Shares) | 1,050,000 | ||||
Reclassification of warrants | 1,763,980 | 1,763,980 | |||
Share issuance costs | (337,852) | (170,798) | (508,650) | ||
Loss for the period | (3,101,475) | (3,101,475) | |||
Share-based compensation | 207,302 | 207,302 | |||
Activity for the month | $ 7,522,177 | 3,527,868 | (6,944,336) | 430,443 | 4,536,152 |
Activity for the month (in Shares) | 2,830,000 | ||||
Balance at Mar. 31, 2021 | $ 60,587,417 | $ 21,292,201 | $ (71,593,717) | $ 128,569 | $ 10,414,470 |
Balance (in Shares) at Mar. 31, 2021 | 8,050,707 |
Condensed Consolidated Interi_5
Condensed Consolidated Interim Statements of Cash Flows (Unaudited) - USD ($) | 9 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Operating Activities | ||
Net loss for the period | $ (6,944,336) | $ (7,322,865) |
Items not requiring cash: | ||
Amortization and depreciation | 92,218 | 85,572 |
Share-based compensation | 389,343 | 838,304 |
Non-cash lease expense | 88,620 | 63,130 |
Loss on disposal of assets | 2,331 | |
Received interest income on short-term investments | 159 | 80,819 |
Unrealized gain on derivative warrants liability | (242,628) | |
Unrealized gain on foreign exchange | (571) | |
Payments on lease obligations | (66,537) | (48,865) |
Finance expense | 360,350 | |
Prepaids and other assets | (1,192,936) | 72,428 |
Other non-current assets | (14,161) | |
Accounts receivable | (18,183) | 29,704 |
Accounts payable and accrued liabilities | (235,892) | 223,369 |
Total cash used in operating activities | (7,784,554) | (5,976,073) |
Investing Activities | ||
Maturity of short-term investments | 3,876,269 | |
Purchase of short-term investments | (43,619) | |
Proceeds on disposal of property and equipment | 546 | |
Purchase of property and equipment | (43,496) | |
Total cash provided by investing activities | 3,789,700 | |
Financing Activities | ||
Shares issued for cash | 12,472,500 | |
Share issuance costs | (1,534,602) | |
Total cash provided by financing activities | 10,937,898 | |
Effects of foreign exchange on cash and cash equivalents | 494,960 | (682,210) |
Increase (decrease) in cash during the period | 3,648,304 | (2,868,583) |
Cash and cash equivalents beginning of the period | 5,805,809 | 9,837,213 |
Cash and cash equivalents end of the period | $ 9,454,113 | $ 6,968,630 |
Corporate Information and Conti
Corporate Information and Continuing Operations | 9 Months Ended |
Mar. 31, 2021 | |
Corporate Information and Continuing Operations [Abstract] | |
CORPORATE INFORMATION AND CONTINUING OPERATIONS | CORPORATE INFORMATION AND CONTINUING OPERATIONS InMed Pharmaceuticals Inc. (“InMed” or the “Company”) was incorporated in the Province of British Columbia on May 19, 1981 under the Business Corporations Act The Company’s shares are listed on the on the Nasdaq Capital Market (“Nasdaq”) under the trading symbol “INM”). InMed’s corporate office and principal place of business is located at #310 – 815 West Hastings Street, Vancouver, B.C., Canada, V6C 1B4. In accordance with the Financial Accounting Standards Board (“FASB”) Accounting Standards Update (“ASU”) 2014-15, Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern (Subtopic 205-40), the Company has evaluated whether there are conditions and events, considered in the aggregate, that raise substantial doubt about the Company’s ability to continue as a going concern within one year after the date that the condensed consolidated interim financial statements are issued. Through March 31, 2021, the Company has funded its operations primarily with proceeds from the sale of common stock. The Company has incurred recurring losses and negative cash flows from operations since its inception, including net losses of $6.9 million and $7.3 million for the nine months ended March 31, 2021 and 2020, respectively. In addition, the Company had an accumulated deficit of $71.6 million as of March 31, 2021. The Company expects to continue to generate operating losses for the foreseeable future. As of the issuance date of these condensed consolidated interim financial statements, the Company expects its cash and cash equivalents of $9.5 million as of March 31, 2021 will be sufficient to fund its operating expenses and capital expenditure requirements into the second quarter of fiscal 2022. The future viability of the Company beyond that point is dependent on its ability to raise additional capital to finance its operations. As a result, the Company has concluded that there is substantial doubt about its ability to continue as a going concern within one year after the date that the condensed consolidated interim financial statements are issued. The Company expects to continue to seek additional funding through equity financings, debt financings or other capital sources, including collaborations with other companies, government contracts or other strategic transactions. The Company may not be able to obtain financing on acceptable terms, or at all. The terms of any financing may adversely affect the holdings or the rights of the Company’s existing stockholders. These condensed consolidated interim financial statements have been prepared on a going concern basis, which assumes that the Company will be able to meet its commitments, realize its assets and discharge its liabilities in the normal course. These condensed consolidated interim financial statements do not reflect adjustments to the carrying values of assets and liabilities that would be necessary if the Company was unable to continue as a going concern and such adjustments could be material. |
Significant Accounting Policies
Significant Accounting Policies | 9 Months Ended |
Mar. 31, 2021 | |
Accounting Policies [Abstract] | |
SIGNIFICANT ACCOUNTING POLICIES | 2. SIGNIFICANT ACCOUNTING POLICIES (a) Basis of Presentation These unaudited condensed consolidated interim financial statements have been prepared using accounting policies consistent with those used in the Company’s 2020 annual consolidated financial statements under generally accepted accounting principles as applied in the United States (“US GAAP”) except for new standards, interpretations and amendments mandatorily effective for the first time from July 1, 2020. Prior to January 1, 2021, the Company’s functional currency was the Canadian dollar and its presentation currency was the U.S. dollar. During the quarter, the Company reassessed its functional currency and determined that its functional currency changed from the Canadian dollar to the U.S. dollar based on management’s analysis of the changes in the primary economic environment in which the Company operates. The change in functional currency is accounted for prospectively from January 1, 2021 and prior year financial statements have not been restated for the change in functional currency. As a result of the functional currency change, the Company reclassified the value of the derivative warrants liability to additional paid-in capital (see Note 6). For periods prior to January 1, 2021, the effects of exchange rate fluctuations on translating foreign currency monetary assets and liabilities into Canadian dollars were included in the statement of operations and comprehensive loss as foreign exchange gain/loss. Revenue and expense transactions were translated into the U.S. dollar reporting currency at the average exchange rate during the period, and assets and liabilities were translated at end of period exchange rates, except for equity transactions, which were translated at historical exchange rates. Translation gains and losses from the application of the U.S. dollar as the reporting currency while the Canadian dollar was the functional currency are included as part of the cumulative foreign currency translation adjustment, which is reported as a component of shareholders’ equity under accumulated other comprehensive loss. For periods commencing January 1, 2021, monetary assets and liabilities denominated in foreign currencies are translated into U.S. dollars using exchange rates in effect at the balance sheet date. Opening balances related to non-monetary assets and liabilities are based on prior period translated amounts, and non-monetary assets and non-monetary liabilities incurred after January 1, 2021 are translated at the approximate exchange rate prevailing at the date of the transaction. Revenue and expense transactions are translated at the approximate exchange rate in effect at the time of the transaction. Foreign exchange gains and losses are included in the statement of operations and comprehensive loss as foreign exchange gain (loss). (b) Use of Estimates The preparation of financial statements in compliance with US GAAP requires management to make certain critical accounting estimates. It also requires management to exercise judgment in applying the Company’s accounting policies. In the future, actual experience may differ from these estimates and assumptions. The areas involving a higher degree of judgment or complexity, or areas where assumptions and estimates are significant to these condensed consolidated interim financial statements are the estimate of useful life of intangible assets, the application of the going concern assumption, the impairment assessment for long-lived assets, and determining the fair value of share-based payments and warrants. On March 11, 2020 the COVID-19 outbreak was declared a pandemic by the World Health Organization. The situation is dynamic and the ultimate duration and magnitude of the impact on the economy and our business are not known at this time. Management uses judgment to assess the impact of the pandemic on the Company’s ability to obtain debt and equity financing in the future and impairment in the value of its long-lived assets. The Company determined that there is not a significant impact on its operations during the nine months ended March 31, 2021. (c) Basis of Consolidation These condensed consolidated interim financial statements include the accounts of the Company and its subsidiaries, including inactive subsidiaries: Biogen Sciences Inc., Sweetnam Consulting Inc., and InMed Pharmaceutical Ltd. A subsidiary is an entity that the Company controls, either directly or indirectly, where control is defined as the power to govern the financial and operating policies of an entity so as to obtain benefits from its activities. All inter-company transactions and balances including unrealized income and expenses arising from intercompany transactions are eliminated in preparing these condensed consolidated interim financial statements. (d) Derivative financial instruments The Company generally does not use derivative instruments to hedge exposures to cash-flow or market risks; however, certain warrants to purchase common stock that do not meet the requirements for classification as equity are classified as liabilities with attributable transaction costs recognized in the condensed consolidation interim statement of operations and comprehensive loss. Such financial instruments are initially recorded at fair value with subsequent changes in fair value charged (credited) to operations in each reporting period. If these instruments subsequently meet the requirements for classification as equity, the Company reclassifies the fair value to equity. (e) New Standards Applicable in the Reporting Period i) Credit losses In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326) ii) Fair Value Measurement In August 2018, the FASB issued ASU 2018–13, Fair Value Measurement (Topic 820) iii) Collaborative Arrangements In November 2018, the FASB issued ASU 2018–18, Collaborative Arrangements (Topic 808) |
Property and Equipment, Net
Property and Equipment, Net | 9 Months Ended |
Mar. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY AND EQUIPMENT, NET | 3. PROPERTY AND EQUIPMENT, NET Property and equipment consists of the following: March 31, June 30, $ $ Right of Use Asset (lease) 446,780 417,405 Equipment 67,277 62,853 Leasehold Improvements 42,986 40,160 Property and equipment 557,043 520,418 Less: accumulated depreciation (209,151 ) (116,933 ) Property and equipment, net 347,892 403,485 Depreciation expense on property, equipment and leasehold improvements for the three and nine months ended March 31, 2021 was $3,633 and $16,546 (2020 - $26,870 and $68,695, respectively). Depreciation expense related to the Right-of-Use Asset for the three and nine months ended March 31, 2021 of $22,327 and $65,506 (2020 - $21,148 and $49,924) and was recorded in general and administrative expenses. |
Intangible Assets, Net
Intangible Assets, Net | 9 Months Ended |
Mar. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
INTANGIBLE ASSETS, NET | 4. INTANGIBLE ASSETS, NET Intangible assets consist of: March 31, June 30, $ $ Intellectual property 1,736,420 1,622,255 Less: accumulated amortization (650,672 ) (535,600 ) Property and equipment, net 1,085,748 1,086,655 The acquired intellectual property is recorded at cost and is amortized on a straight-line basis over an estimated useful life of 18 years net of any accumulated impairment losses. As at March 31, 2021, the acquired intellectual property has an estimated remaining useful life of approximately 11 years. Amortization expense on intangible assets for the three and nine months ended March 31, 2021 was $23,788 and $75,672 (2020- $21,391 and $66,801). Based upon the intangible assets held as at March 31, 2021, the Company expects amortization expense to be incurred over the next five years as follows: $ 2021 96,467 2022 96,467 2023 96,467 2024 96,467 2025 96,467 482,335 |
Accounts Payable and Accrued Li
Accounts Payable and Accrued Liabilities | 9 Months Ended |
Mar. 31, 2021 | |
Payables and Accruals [Abstract] | |
ACCOUNTS PAYABLE AND ACCRUED LIABILITIES | 5. ACCOUNTS PAYABLE AND ACCRUED LIABILITIES Accounts payable and accrued liabilities consist of the following: March 31, June 30, $ $ Trade payables 795,343 706,516 Accrued research and development expenses 192,063 193,119 Employee compensation, benefits and related accruals 582,502 536,231 Accrued general and administrative expenses 65,569 171,437 Accounts payable and accrued liabilities 1,635,477 1,607,303 |
Derivative Warrants Liability
Derivative Warrants Liability | 9 Months Ended |
Mar. 31, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
DERIVATIVE WARRANTS LIABILITY | 6. DERIVATIVE WARRANTS LIABILITY The warrants issued as part of the November 16, 2020 public offering of common shares and common share purchase warrants (see Note 7), in accordance with ASC Topic 480, Distinguishing Liabilities from Equity Derivatives and Hedging At inception, the derivative is measured, using the Black-Scholes pricing model, at fair value with subsequent changes in fair value recognized in unrealized gain or loss on derivative warrants liability. On January 1, 2021, the Company’s functional currency changed from the Canadian dollar to the U.S. dollar. As a result of the change in functional currency, the Company reassessed the treatment of the derivative warrants liability and determined it should be classified as an equity instrument. The Company reclassified the value of the derivative warrants liability at January 1, 2021 to additional paid-in capital. The reconciliation of changes in fair value for the three- and nine-month periods ended March 31, 2021 is presented in the following table: Three and Nine $ Derivative warrants liability, July 1, 2020 - Fair value of warrants issued 1,958,000 Unrealized gain included in net loss (242,628 ) Translation effect 48,608 Derivative warrants liability, December 31, 2020 1,763,980 Reclassification upon change of functional currency (1,763,980 ) Derivative warrants liability, March 31, 2021 - |
Share Capital and Reserves
Share Capital and Reserves | 9 Months Ended |
Mar. 31, 2021 | |
Share Capital And Reserves [Abstract] | |
SHARE CAPITAL AND RESERVES | 7. SHARE CAPITAL AND RESERVES a) Authorized As at March 31, 2021, the Company’s authorized share structure consisted of: (i) an unlimited number of common shares without par value; and (ii) an unlimited number of preferred shares without par value. No preferred shares were issued and outstanding as at March 31, 2021 and June 30, 2020. The Company may issue preferred shares and may, at the time of issuance, determine the rights, preference and limitations pertaining to these shares. Holders of preferred shares may be entitled to receive a preference payment in the event of any liquidation, dissolution or winding up of the Company before any payment is made to the holders of common shares. b) Common Shares During the nine months ended March 31, 2021, the Company completed the following: Transaction Description Number Issue Price Total Public offering 1,780,000 $ 4.50 $ 8,010,000 Allocated to Derivative Warrants Liability (1,958,000 ) 6,052,000 Share issuance costs - $ - $ (1,109,128 ) Transaction Description Number Issue Price Total Private placement 1,050,000 $ 4.25 $ 4,462,500 Allocated to Additional Paid-in Capital (1,545,343 ) 2,917,157 Share issuance costs - $ - $ (337,852 ) On November 16, 2020, the Company closed a public offering of its common shares and issued an aggregate of 1,780,000 common shares, together with accompanying warrants, for gross proceeds of $8,010,000. Each common share was sold in the offering with one warrant to purchase one common share. Transaction costs were allocated proportionally between the common shares and the derivative warrants liability (see Note 6) with $1,109,128 allocated to common shares and charged to shareholders’ equity and the balance of $360,350 allocated to the warrants and charged to operations. On February 12, 2021, the Company closed a private placement of its common shares and issued an aggregate of 1,050,000 common shares, together with accompanying warrants, for gross proceeds of $4,462,500. Each common share was sold in the offering with a warrant to purchase 0.66 of a common share. Transaction costs were allocated proportionally between common shares and additional paid-in capital with $337,852 allocated to common shares and the balance of $170,798 allocated to additional paid-in capital and both charged to shareholders’ equity. c) Share Purchase Warrants A total of 910,297 share purchase warrants issued in January 2018 and June 2018 expired in July 2019 and June 2020, respectively, and were exercisable in Canadian dollars (United States dollar amounts for exercise price and aggregate intrinsic value are calculated using prevailing rates as at June 30, 2020). Each warrant entitled the holders thereof the right to purchase one common share. On November 16, 2020, 1,780,000 warrants were issued with an exercise price of $5.11 per share, were immediately exercisable upon issuance, and expire 6 years following the date of issuance. On February 12, 2021, 693,000 warrants were issued with an exercise price of $4.85 per share, are exercisable 6 months following issuance, and expire 5.5 years following the date of issuance. The following is a summary of changes in share purchase warrants from July 1, 2019 to March 31, 2021: Number Weighted Average Weighted Average Aggregate Intrinsic Value Aggregate Intrinsic Value # C$ US$ C$ US$ Balance as at June 30, 2019 910,297 $ 41.25 $ 31.52 - - Expired (910,297 ) $ 41.25 $ 31.52 Balance as at June 30, 2020 - - - - - Granted 1,780,000 - $ 5.11 - - Balance as at December 31, 2020 1,780,000 - $ 5.11 - - Granted 693,000 - $ 4.85 - - Balance as at March 31, 2021 2,473,000 - $ 5.04 - - d) Agents’ Warrants There are no agents’ warrants outstanding at March 31, 2021 and June 30, 2020. |
Share-Based Payments
Share-Based Payments | 9 Months Ended |
Mar. 31, 2021 | |
Share-based Payment Arrangement [Abstract] | |
SHARE-BASED PAYMENTS | 8. SHARE-BASED PAYMENTS a) Option Plan Details On March 24, 2017, and as amended on November 20, 2020, the Company’s shareholders approved: (i) the adoption of a new stock option plan (the “Plan”) pursuant to which the Board of Directors may, from time to time, in its discretion and in accordance with the requirements of the TSX, grant to directors, officers, employees and consultants of the Company, non-transferable options to purchase common shares, provided that the number of common shares reserved for issuance will not exceed twenty percent (20%) of the issued and outstanding common shares at the date the options are granted (on a non-diluted and rolling basis); and (ii) the application of the new stock option plan to all outstanding stock options of the Company that were granted prior to March 24, 2017 under the terms of the Company’s previous stock option plan. As at March 31, 2021, there were 718,620 (June 30, 2020 – 455,507) options available for future allocation pursuant to the terms of the Plan. The option price under each option shall be not be less than the closing price on the day prior to the date of grant. All options vest upon terms as set by the Board of Directors, either over time, typically 12 to 36 months, or upon the achievement of certain corporate milestones. Stock options are granted with Canadian dollar exercise prices (United States dollar amounts for weighted average exercise prices and aggregate intrinsic value are calculated using prevailing rates as at March 31, 2021). The following is a summary of changes in outstanding options from July 1, 2019 to March 31, 2021: Number Weighted Average Exercise Price Weighted Average Exercise Price C$ US$ Balance as at June 30, 2019 599,090 17.64 13.48 Granted 52,728 8.78 6.44 Expired/Forfeited (63,183 ) 37.39 27.43 Balance as at June 30, 2020 588,635 14.73 10.81 Granted 339,250 3.85 3.06 Expired/Forfeited (36,364 ) 8.20 6.52 Balance as at March 31, 2021 891,521 10.85 8.63 b) Fair Value of Options Issued During the Period i) The weighted average fair value at grant date of options granted during the nine months ended March 31, 2021 was C$2.52 per option (year ended June 30, 2020 - C$6.08). Assumptions used for options granted during the nine months ended March 31, 2021 included a weighted average risk-free interest rate of 0.25% (year ended June 30, 2020 – 1.51%), weighted average expected life of 3.2 years calculated using the Simplified Method for directors, officers and employees and the contractual life for consultants (year ended June 30, 2020 – 3.3 years), weighted average volatility factor of 106.43% (year ended June 30, 2020 – 110.08%), weighted average dividend yield of 0% (year ended June 30, 2020 – 0%) and a 5% forfeiture rate (year ended June 30, 2020 – 5%). ii) Expenses Arising from Share-based Payment Transactions Total expenses arising from share-based payment transactions recognized during the three and nine months ended March 31, 2021 were $207,302 and $389,343 (2020 - $203,869 and $838,304). Unrecognized compensation cost at March 31, 2021 related to unvested options was $527,122 which will be recognized over a weighted-average vesting period of 1.6 years. |
Lease Obligations
Lease Obligations | 9 Months Ended |
Mar. 31, 2021 | |
Leases [Abstract] | |
LEASE OBLIGATIONS | 9. LEASE OBLIGATIONS On commencement of the lease for the Company’s new offices premises on July 1, 2019, the Company recognized right-of-use assets of $434,660 and a lease liability of $385,057 with no net impact on accumulated deficit. When measuring lease liabilities, the Company discounted lease payments using its incremental borrowing rate at July 1, 2019 of 8%. The following table lists the Company’s operating lease obligations recognized on commencement of the lease for the Company’s new offices premises at July 1, 2019. Lease obligations recognized as at July 1, 2019 $ 385,057 Discounted using the incremental borrowing rate at July 1, 2019 8 % Estimated annual variable lease payments not included in lease obligations $ 59,983 The Company is committed to minimum lease payments as follows: Maturity Analysis March 31, Less than one year $ 158,158 One to five years 430,601 More than five years - Total undiscounted lease liabilities $ 588,759 (1) (1) Excludes estimated variable operating costs of $62,423 on an annual basis through to August 31, 2024. |
Basic and Diluted Loss per Shar
Basic and Diluted Loss per Share | 9 Months Ended |
Mar. 31, 2021 | |
Earnings Per Share [Abstract] | |
BASIC AND DILUTED LOSS PER SHARE | 10. BASIC AND DILUTED LOSS PER SHARE Basic loss per share amounts are calculated by dividing the net loss for the period by the weighted average number of ordinary shares outstanding during the period. As the outstanding stock options and warrants are anti-dilutive, they are excluded from the weighted average number of common shares in the table below. Three Months Ended Nine Months Ended March 31, March 31, 2021 2020 2021 2020 $ $ $ $ Net loss for the period (3,101,475 ) (2,024,058 ) (6,944,336 ) (7,322,865 ) Basic and diluted loss per share (0.41 ) (0.39 ) (1.11 ) (1.40 ) Weighted average number of common shares - basic and diluted 7,549,040 5,220,707 6,277,824 5,220,707 |
Non-Cash Transactions
Non-Cash Transactions | 9 Months Ended |
Mar. 31, 2021 | |
Related Party Transactions [Abstract] | |
NON-CASH TRANSACTIONS | 11. NON-CASH TRANSACTIONS Investing and financing activities that do not have a direct impact on cash flows are excluded from the statements of cash flows. During the nine months ended March 31, 2021, the following transaction was excluded from the statement of cash flows: i) As at March 31, 2021, the Company has unpaid financing costs of $138,927. During the nine months ended March 31, 2020, the following transaction was excluded from the statement of cash flows: ii) On January 14, 2019, the Company executed a lease for new office premises (see Note 9). The term of this new lease is from July 1, 2019 to August 31, 2024. In accordance with Topic 842 Leases, on commencement of the lease on July 1, 2019, the Company recognized right-of-use assets of $434,660 and a lease liability of $385,057. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Mar. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | 12. COMMITMENTS AND CONTINGENCIES Pursuant to the terms of agreements with various contract research organizations, as at March 31, 2021, the Company is committed for contract research services and materials at a cost of approximately $4,230,884. A total of $4,208,745 of these expenditures are expected to occur in the twelve months following March 31, 2021 and the balance of $22,139 in the following twelve-month period. Pursuant to the terms of a May 31, 2017 Technology Assignment Agreement between the Company and the University of British Columbia (“UBC”), the Company is committed to pay royalties to UBC on certain licensing and royalty revenues received by the Company for biosynthesis of certain drug products that are covered by the agreement. To date, no payments have been required to be made. Pursuant to the terms of a December 13, 2018 Collaborative Research Agreement with UBC in which the Company owns all right, title and interest in and to any intellectual property, in addition to funding research at UBC, the Company is committed to make a one-time payment upon filing of any PCT patent application arising from the research. To date, no payments have been required to be made. Pursuant to the terms of a November 1, 2018 Contribution Agreement with National Research Council Canada, as represented by its Industrial Research Assistance Program (NRC-IRAP), under certain circumstances contributions received, including the disposition of the underlying intellectual property developed in part with NRC-IRAP contributions, may become repayable. Short-term investments include guaranteed investment certificates with a face value of $45,724 (June 30, 2020 - $42,193) that are pledged as security for a corporate credit card. The Company has entered into certain agreements in the ordinary course of operations that may include indemnification provisions, which are common in such agreements. In some cases, the maximum amount of potential future indemnification is unlimited; however, the Company currently holds commercial general liability insurance. This insurance limits the Company’s liability and may enable the Company to recover a portion of any future amounts paid. Historically, the Company has not made any indemnification payments under such agreements and it believes that the fair value of these indemnification obligations is minimal. Accordingly, the Company has not recognized any liabilities relating to these obligations for any period presented. In July 2020, in connection with the IPO of our common shares, two inadvertent disclosures of already publicly available information were made that may have exceeded the scope permissible under Rule 134 of the Securities Act of 1933, and thus may not be entitled to the "safe-harbor" provided by Rule 134. As a result, either of the two inadvertent disclosures could be determined to not be in compliance for a registered securities offering under Section 5 of the Securities Act of 1933. If either of the two inadvertent disclosures are determined by a court to be a violation by the Company of the Securities Act of 1933, the recipients of the inadvertent disclosures who purchased our common shares in the IPO may have a rescission right, which could require the Company to repurchase those shares at their original purchase price with interest or a claim for damages if the purchaser no longer owns the securities, for one year following the date of the violation. The Company could also incur considerable expense if it were to contest any such claims. Consequently, a contingent liability may arise out of this possible violation of the Securities Act of 1933. The likelihood and magnitude of this contingent liability, if any, is not determinable at this time. Pursuant to a technology licensing agreement, the Company is committed to issue, subject to regulatory approval, up to 17,500 warrants to purchase 17,500 common shares upon the achievement of certain milestones. The exercise price of the warrants will be equal to the five-day VWAP of the common shares prior to each milestone achievement and the warrants will be exercisable for a period of three years for issuance date. From time to time, the Company may be subject to various legal proceedings and claims related to matters arising in the ordinary course of business. The Company does not believe it is currently subject to any material matters where there is at least a reasonable possibility that a material loss may be incurred. |
Financial Risk Management
Financial Risk Management | 9 Months Ended |
Mar. 31, 2021 | |
Financial Risk Management [Abstract] | |
FINANCIAL RISK MANAGEMENT | 13. FINANCIAL RISK MANAGEMENT Fair value: Fair value measurements recognized in the condensed consolidated balance sheets must be categorized in accordance with the following levels: Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities; Level 2: Inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices); Level 3: Inputs for the asset or liability that are not based on observable market data (unobservable inputs). The Company’s financial instruments consist of cash and cash equivalents, short-term investments, accounts receivable, accounts payable and accrued liabilities and derivative warrants liability. The fair values of short-term investments, accounts receivable, and accounts payable and accrued liabilities approximate their fair values because of the short-term nature of these instruments. Cash and cash equivalents are measured at fair value using Level 1 inputs. The Company measured its derivative warrant liabilities at fair value on a recurring basis using level 3 inputs. The fair value of derivative warrant liabilities is determined using the Black-Scholes valuation model. The following assumptions were used to value the derivative warrant liabilities issued November 16, 2020; exercise price: $5.11; expected risk free interest rate: 0.45%; expected annual volatility; 46.32% expected life in years: 6.0; and expected annual dividend yield: $Nil. Subsequently, the following assumptions were used to value the derivative warrant liabilities at December 31, 2020; exercise price: $5.11; expected risk free interest rate: 0.45%; expected annual volatility: 45.32%; expected life in years: 5.9; and expected annual dividend yield: $Nil. The following table summarizes the fair values and carrying values of the Company’s financial instruments at March 31, 2021 and June 30, 2020: March 31, 2021 Level 1 Level 2 Total Financial assets Cash and cash equivalents 9,454,113 - 9,454,113 Short-term investments - 45,765 45,765 Accounts receivable - 70,300 70,300 Total financial assets 9,454,113 116,065 9,570,178 Financial liabilities Accounts payable and accrued liabilities - 1,635,477 1,635,477 Total financial liabilities - 1,635,477 1,635,477 June 30, 2020 Level 1 Level 2 Total Financial assets Cash and cash equivalents 5,805,809 - 5,805,809 Short-term investments - 42,384 42,384 Accounts receivable - 45,344 45,344 Total financial assets 5,805,809 87,728 5,893,537 Financial liabilities Accounts payable and accrued liabilities - 1,607,303 1,607,303 Total financial liabilities - 1,607,303 1,607,303 a) Market Risk: Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. Market prices are comprised of four types of risk: foreign currency risk, interest rate risk, commodity price risk and equity price risk. The Company does not currently have significant commodity price risk or equity price risk. Foreign Currency Risk Foreign currency risk is the risk that the future cash flows or fair value of the Company’s financial instruments that are denominated in a currency that is not the Company’s functional currency (U.S. dollar) will fluctuate due to changes in foreign exchange rates. Portions of the Company’s cash and cash equivalents and accounts payable and accrued liabilities are denominated in Canadian dollars. Accordingly, the Company is exposed to fluctuations in the Euro and Canadian dollar exchange rates. As at March 31, 2021, the Company has a net excess of Canadian dollar denominated cash and cash equivalents in excess of Canadian dollar denominated accounts payable and accrued liabilities of C$2,438,694 which is equivalent to US$1,939,249 at the March 31, 2021 exchange rate. The Canadian dollar financial assets generally result from holding Canadian dollar cash to settle anticipated near-term accounts payable and accrued liabilities denominated in Canadian dollars. The Canadian dollar financial liabilities generally result from purchases of supplies and services from suppliers in Canada. Each change of 1% in the Canadian dollar in relation to the U.S. dollar results in a gain or loss, with a corresponding effect on cash flows, of $19,392 based on the March 31, 2021 net Canadian dollar assets (liabilities) position. During the nine months ended March 31, 2021, the Company recorded foreign exchange gain of $30,385 (March 31, 2020 – $Nil) related to Canadian dollars. As at March 31, 2021, the Company has a net excess of Euros denominated accounts payable and accrued liabilities in excess of Euros denominated cash and cash equivalents of €20,346 which is equivalent to US$23,878 at the March 31, 2021 exchange rate. The Euros financial assets generally result from holding Euro denominated account holdings to settle anticipated near-term accounts payable and accrued liabilities denominated in Euros. The Euros financial liabilities generally result from purchases of supplies and services from suppliers from outside of Canada. Each change of 1% in the Euro in relation to the U.S. dollar results in a gain or loss, with a corresponding effect on cash flows, of $239 based on the March 31, 2021 net Euro assets (liabilities) position. During the nine months ended March 31, 2021, the Company recorded a foreign exchange gain of $35,033 (March 31, 2020 – $1,678) related to Euros. Interest Rate Risk: Interest rate risk is the risk that future cash flows will fluctuate as a result of changes in market interest rates. As at March 31, 2021, holdings of cash and cash equivalents of $3,460,601 (June 30, 2020 - $4,307,407) are subject to floating interest rates. The balance of the Company’s cash holdings of $5,993,512 (June 30, 2020 - $1,498,402) are non-interest bearing. As at March 31, 2021, the Company held variable rate guaranteed investment certificates, with one-year terms, with face value of $45,724 (June 30, 2020 - $42,193). The Company’s current policy is to invest excess cash in guaranteed investment certificates or interest-bearing accounts of major Canadian chartered banks or credit unions with comparable credit ratings. The Company regularly monitors compliance to its cash management policy. The Company, as at March 31, 2021, does not have any borrowings. Interest rate risk is limited to potential decreases on the interest rate offered on cash and cash equivalents and short-term investments held with chartered Canadian financial institutions. The Company considers this risk to be immaterial. b) Credit Risk: Credit risk is the risk of financial loss to the Company if a customer or a counter party to a financial instrument fails to meet its contractual obligations. Financial instruments which are potentially subject to credit risk for the Company consist primarily of cash and cash equivalents and short-term investments. Cash and cash equivalents and short-term investments are maintained with financial institutions of reputable credit and may be redeemed upon demand. The carrying amount of financial assets represents the maximum credit exposure. Credit risk exposure is limited through maintaining cash and cash equivalents and short-term investments with high-credit quality financial institutions and management considers this risk to be minimal for all cash and cash equivalents and short-term investments assets based on changes that are reasonably possible at each reporting date. c) Liquidity Risk: Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they become due. The Company’s policy is to ensure that it has sufficient cash to meet its liabilities when they become due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the Company’s reputation. A key risk in managing liquidity is the degree of uncertainty in the cash flow projections. If future cash flows are fairly uncertain, the liquidity risk increases. As at March 31, 2021, the Company has cash and cash equivalents and short-term investments of $9,499,878 (June 30, 2020 - $5,848,193), current liabilities of $1,714,295 (June 30, 2020 - $1,676,268 ) and a working capital surplus of $9,182,409 (June 30, 2020 - $4,636,189). |
Accounting Policies, by Policy
Accounting Policies, by Policy (Policies) | 9 Months Ended |
Mar. 31, 2021 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation These unaudited condensed consolidated interim financial statements have been prepared using accounting policies consistent with those used in the Company’s 2020 annual consolidated financial statements under generally accepted accounting principles as applied in the United States (“US GAAP”) except for new standards, interpretations and amendments mandatorily effective for the first time from July 1, 2020. Prior to January 1, 2021, the Company’s functional currency was the Canadian dollar and its presentation currency was the U.S. dollar. During the quarter, the Company reassessed its functional currency and determined that its functional currency changed from the Canadian dollar to the U.S. dollar based on management’s analysis of the changes in the primary economic environment in which the Company operates. The change in functional currency is accounted for prospectively from January 1, 2021 and prior year financial statements have not been restated for the change in functional currency. As a result of the functional currency change, the Company reclassified the value of the derivative warrants liability to additional paid-in capital (see Note 6). For periods prior to January 1, 2021, the effects of exchange rate fluctuations on translating foreign currency monetary assets and liabilities into Canadian dollars were included in the statement of operations and comprehensive loss as foreign exchange gain/loss. Revenue and expense transactions were translated into the U.S. dollar reporting currency at the average exchange rate during the period, and assets and liabilities were translated at end of period exchange rates, except for equity transactions, which were translated at historical exchange rates. Translation gains and losses from the application of the U.S. dollar as the reporting currency while the Canadian dollar was the functional currency are included as part of the cumulative foreign currency translation adjustment, which is reported as a component of shareholders’ equity under accumulated other comprehensive loss. For periods commencing January 1, 2021, monetary assets and liabilities denominated in foreign currencies are translated into U.S. dollars using exchange rates in effect at the balance sheet date. Opening balances related to non-monetary assets and liabilities are based on prior period translated amounts, and non-monetary assets and non-monetary liabilities incurred after January 1, 2021 are translated at the approximate exchange rate prevailing at the date of the transaction. Revenue and expense transactions are translated at the approximate exchange rate in effect at the time of the transaction. Foreign exchange gains and losses are included in the statement of operations and comprehensive loss as foreign exchange gain (loss). |
Use of Estimates | Use of Estimates The preparation of financial statements in compliance with US GAAP requires management to make certain critical accounting estimates. It also requires management to exercise judgment in applying the Company’s accounting policies. In the future, actual experience may differ from these estimates and assumptions. The areas involving a higher degree of judgment or complexity, or areas where assumptions and estimates are significant to these condensed consolidated interim financial statements are the estimate of useful life of intangible assets, the application of the going concern assumption, the impairment assessment for long-lived assets, and determining the fair value of share-based payments and warrants. On March 11, 2020 the COVID-19 outbreak was declared a pandemic by the World Health Organization. The situation is dynamic and the ultimate duration and magnitude of the impact on the economy and our business are not known at this time. Management uses judgment to assess the impact of the pandemic on the Company’s ability to obtain debt and equity financing in the future and impairment in the value of its long-lived assets. The Company determined that there is not a significant impact on its operations during the nine months ended March 31, 2021. |
Basis of Consolidation | Basis of Consolidation These condensed consolidated interim financial statements include the accounts of the Company and its subsidiaries, including inactive subsidiaries: Biogen Sciences Inc., Sweetnam Consulting Inc., and InMed Pharmaceutical Ltd. A subsidiary is an entity that the Company controls, either directly or indirectly, where control is defined as the power to govern the financial and operating policies of an entity so as to obtain benefits from its activities. All inter-company transactions and balances including unrealized income and expenses arising from intercompany transactions are eliminated in preparing these condensed consolidated interim financial statements. |
Derivative financial instruments | Derivative financial instruments The Company generally does not use derivative instruments to hedge exposures to cash-flow or market risks; however, certain warrants to purchase common stock that do not meet the requirements for classification as equity are classified as liabilities with attributable transaction costs recognized in the condensed consolidation interim statement of operations and comprehensive loss. Such financial instruments are initially recorded at fair value with subsequent changes in fair value charged (credited) to operations in each reporting period. If these instruments subsequently meet the requirements for classification as equity, the Company reclassifies the fair value to equity. |
New Standards Applicable in the Reporting Period | New Standards Applicable in the Reporting Period i) Credit losses In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326) ii) Fair Value Measurement In August 2018, the FASB issued ASU 2018–13, Fair Value Measurement (Topic 820) iii) Collaborative Arrangements In November 2018, the FASB issued ASU 2018–18, Collaborative Arrangements (Topic 808) |
Property and Equipment, Net (Ta
Property and Equipment, Net (Tables) | 9 Months Ended |
Mar. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |
Schedule of property and equipment | March 31, June 30, $ $ Right of Use Asset (lease) 446,780 417,405 Equipment 67,277 62,853 Leasehold Improvements 42,986 40,160 Property and equipment 557,043 520,418 Less: accumulated depreciation (209,151 ) (116,933 ) Property and equipment, net 347,892 403,485 |
Intangible Assets, Net (Tables)
Intangible Assets, Net (Tables) | 9 Months Ended |
Mar. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of intangible assets | March 31, June 30, $ $ Intellectual property 1,736,420 1,622,255 Less: accumulated amortization (650,672 ) (535,600 ) Property and equipment, net 1,085,748 1,086,655 |
Schedule of amortization expense | $ 2021 96,467 2022 96,467 2023 96,467 2024 96,467 2025 96,467 482,335 |
Accounts Payable and Accrued _2
Accounts Payable and Accrued Liabilities (Tables) | 9 Months Ended |
Mar. 31, 2021 | |
Payables and Accruals [Abstract] | |
Schedule of Accounts payable and accrued liabilities | March 31, June 30, $ $ Trade payables 795,343 706,516 Accrued research and development expenses 192,063 193,119 Employee compensation, benefits and related accruals 582,502 536,231 Accrued general and administrative expenses 65,569 171,437 Accounts payable and accrued liabilities 1,635,477 1,607,303 |
Derivative Warrants Liability (
Derivative Warrants Liability (Tables) | 9 Months Ended |
Mar. 31, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of reconciliation of changes in fair value of derivative warrants liability | Three and Nine $ Derivative warrants liability, July 1, 2020 - Fair value of warrants issued 1,958,000 Unrealized gain included in net loss (242,628 ) Translation effect 48,608 Derivative warrants liability, December 31, 2020 1,763,980 Reclassification upon change of functional currency (1,763,980 ) Derivative warrants liability, March 31, 2021 - |
Share Capital and Reserves (Tab
Share Capital and Reserves (Tables) | 9 Months Ended |
Mar. 31, 2021 | |
Share Capital And Reserves [Abstract] | |
Schedule of common shares | Transaction Description Number Issue Price Total Public offering 1,780,000 $ 4.50 $ 8,010,000 Allocated to Derivative Warrants Liability (1,958,000 ) 6,052,000 Share issuance costs - $ - $ (1,109,128 ) Transaction Description Number Issue Price Total Private placement 1,050,000 $ 4.25 $ 4,462,500 Allocated to Additional Paid-in Capital (1,545,343 ) 2,917,157 Share issuance costs - $ - $ (337,852 ) |
Schedule of changes in share purchase warrants | Number Weighted Average Weighted Average Aggregate Intrinsic Value Aggregate Intrinsic Value # C$ US$ C$ US$ Balance as at June 30, 2019 910,297 $ 41.25 $ 31.52 - - Expired (910,297 ) $ 41.25 $ 31.52 Balance as at June 30, 2020 - - - - - Granted 1,780,000 - $ 5.11 - - Balance as at December 31, 2020 1,780,000 - $ 5.11 - - Granted 693,000 - $ 4.85 - - Balance as at March 31, 2021 2,473,000 - $ 5.04 - - |
Share-Based Payments (Tables)
Share-Based Payments (Tables) | 9 Months Ended |
Mar. 31, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of options activity | Number Weighted Average Exercise Price Weighted Average Exercise Price C$ US$ Balance as at June 30, 2019 599,090 17.64 13.48 Granted 52,728 8.78 6.44 Expired/Forfeited (63,183 ) 37.39 27.43 Balance as at June 30, 2020 588,635 14.73 10.81 Granted 339,250 3.85 3.06 Expired/Forfeited (36,364 ) 8.20 6.52 Balance as at March 31, 2021 891,521 10.85 8.63 |
Lease Obligations (Tables)
Lease Obligations (Tables) | 9 Months Ended |
Mar. 31, 2021 | |
Leases [Abstract] | |
Schedule of operating leases obligations | Lease obligations recognized as at July 1, 2019 $ 385,057 Discounted using the incremental borrowing rate at July 1, 2019 8 % Estimated annual variable lease payments not included in lease obligations $ 59,983 |
Schedule of minimum lease payments | Maturity Analysis March 31, Less than one year $ 158,158 One to five years 430,601 More than five years - Total undiscounted lease liabilities $ 588,759 (1) |
Basic and Diluted Loss per Sh_2
Basic and Diluted Loss per Share (Tables) | 9 Months Ended |
Mar. 31, 2021 | |
Earnings Per Share [Abstract] | |
Schedule of weighted average number of common shares | Three Months Ended Nine Months Ended March 31, March 31, 2021 2020 2021 2020 $ $ $ $ Net loss for the period (3,101,475 ) (2,024,058 ) (6,944,336 ) (7,322,865 ) Basic and diluted loss per share (0.41 ) (0.39 ) (1.11 ) (1.40 ) Weighted average number of common shares - basic and diluted 7,549,040 5,220,707 6,277,824 5,220,707 |
Financial Risk Management (Tabl
Financial Risk Management (Tables) | 9 Months Ended |
Mar. 31, 2021 | |
Financial Risk Management [Abstract] | |
Schedule of financial instruments | March 31, 2021 Level 1 Level 2 Total Financial assets Cash and cash equivalents 9,454,113 - 9,454,113 Short-term investments - 45,765 45,765 Accounts receivable - 70,300 70,300 Total financial assets 9,454,113 116,065 9,570,178 Financial liabilities Accounts payable and accrued liabilities - 1,635,477 1,635,477 Total financial liabilities - 1,635,477 1,635,477 June 30, 2020 Level 1 Level 2 Total Financial assets Cash and cash equivalents 5,805,809 - 5,805,809 Short-term investments - 42,384 42,384 Accounts receivable - 45,344 45,344 Total financial assets 5,805,809 87,728 5,893,537 Financial liabilities Accounts payable and accrued liabilities - 1,607,303 1,607,303 Total financial liabilities - 1,607,303 1,607,303 |
Corporate Information and Con_2
Corporate Information and Continuing Operations (Details) - USD ($) | 9 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Jun. 30, 2020 | |
Accounting Policies [Abstract] | |||
Net loss | $ 6,900,000 | $ 7,300,000 | |
Accumulated deficit | (71,593,717) | $ (64,649,381) | |
Cash and cash equivalents | $ 9,500,000 |
Property and Equipment, Net (De
Property and Equipment, Net (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2021 | Mar. 31, 2020 | |
Property, Plant and Equipment [Abstract] | ||||
Depreciation expense on property equipment | $ 3,633 | $ 26,870 | $ 16,546 | $ 68,695 |
Depreciation expense related to right of use asset | $ 22,327 | $ 21,148 | $ 65,506 | $ 49,924 |
Property and Equipment, Net (_2
Property and Equipment, Net (Details) - Schedule of property and equipment - USD ($) | Mar. 31, 2021 | Jun. 30, 2020 |
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 557,043 | $ 520,418 |
Less: accumulated depreciation | (209,151) | (116,933) |
Property and equipment, net | 347,892 | 403,485 |
Right-of-Use Asset (lease) [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 446,780 | 417,405 |
Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 67,277 | 62,853 |
Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 42,986 | $ 40,160 |
Intangible Assets, Net (Details
Intangible Assets, Net (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2021 | Mar. 31, 2020 | |
Intangible Assets, Net (Details) [Line Items] | ||||
Estimated useful life | 18 years | |||
Amortization expense on intangible assets | $ 23,788 | $ 21,391 | $ 75,672 | $ 66,801 |
Intellectual property [Member] | ||||
Intangible Assets, Net (Details) [Line Items] | ||||
Estimated remaining useful life | 11 years |
Intangible Assets, Net (Detai_2
Intangible Assets, Net (Details) - Schedule of intangible assets - USD ($) | Mar. 31, 2021 | Jun. 30, 2020 |
Schedule of intangible assets [Abstract] | ||
Intellectual property | $ 1,736,420 | $ 1,622,255 |
Less: accumulated amortization | (650,672) | (535,600) |
Property and equipment, net | $ 1,085,748 | $ 1,086,655 |
Intangible Assets, Net (Detai_3
Intangible Assets, Net (Details) - Schedule of amortization expense | Mar. 31, 2021USD ($) |
Schedule of amortization expense [Abstract] | |
2021 | $ 96,467 |
2022 | 96,467 |
2023 | 96,467 |
2024 | 96,467 |
2025 | 96,467 |
Total | $ 482,335 |
Accounts Payable and Accrued _3
Accounts Payable and Accrued Liabilities (Details) - Schedule of Accounts payable and accrued liabilities - USD ($) | Mar. 31, 2021 | Jun. 30, 2020 |
Schedule of Accounts payable and accrued liabilities [Abstract] | ||
Trade payables | $ 795,343 | $ 706,516 |
Accrued research and development expenses | 192,063 | 193,119 |
Employee compensation, benefits and related accruals | 582,502 | 536,231 |
Accrued general and administrative expenses | 65,569 | 171,437 |
Accounts payable and accrued liabilities | $ 1,635,477 | $ 1,607,303 |
Derivative Warrants Liability_2
Derivative Warrants Liability (Details) - Schedule of reconciliation of changes in fair value of derivative warrants liability | 9 Months Ended |
Mar. 31, 2021USD ($) | |
Schedule of reconciliation of changes in fair value of derivative warrants liability [Abstract] | |
Derivative warrants liability, July 1, 2020 | |
Derivative warrants liability, December 31, 2020 | 1,763,980 |
Fair value of warrants issued | 1,958,000 |
Unrealized gain included in net loss | (242,628) |
Translation effect | 48,608 |
Reclassification upon change of functional currency | $ (1,763,980) |
Share Capital and Reserves (Det
Share Capital and Reserves (Details) | Feb. 12, 2021USD ($)$ / sharesshares | Nov. 16, 2020USD ($)$ / sharesshares |
Share Capital and Reserves (Details) [Line Items] | ||
Common shares issued (in Shares) | shares | 1,050,000 | 1,780,000 |
Gross proceeds from warrants | $ 4,462,500 | $ 8,010,000 |
Transaction costs allocated to common shares | 337,852 | 1,109,128 |
Transaction costs allocated to warrants | $ 360,350 | |
Transaction costs allocated to additional paid-in capital | $ 170,798 | |
Share purchase warrants, description | A total of 910,297 share purchase warrants issued in January 2018 and June 2018 expired in July 2019 and June 2020, respectively, and were exercisable in Canadian dollars (United States dollar amounts for exercise price and aggregate intrinsic value are calculated using prevailing rates as at June 30, 2020). Each warrant entitled the holders thereof the right to purchase one common share. | |
Warrants issued (in Shares) | shares | 1,780,000 | |
Warrants exercise price (in Dollars per share) | $ / shares | $ 4.85 | $ 5.11 |
Warrants expiry term | 6 years | |
Warrants exercisable term | 6 months | |
Warrants expiry term | 5 years 6 months | |
Warrant [Member] | ||
Share Capital and Reserves (Details) [Line Items] | ||
Ratio of warrants to purchase common shares | 0.66 | |
Agents Warrants [Member] | ||
Share Capital and Reserves (Details) [Line Items] | ||
Warrants issued (in Shares) | shares | 693,000 |
Share Capital and Reserves (D_2
Share Capital and Reserves (Details) - Schedule of common shares - USD ($) | 6 Months Ended | 9 Months Ended |
Dec. 31, 2020 | Mar. 31, 2021 | |
Share Capital and Reserves (Details) - Schedule of common shares [Line Items] | ||
Number of shares (in Shares) | ||
Issue Price (in Dollars per share) | ||
Total | $ (1,109,128) | $ (337,852) |
Public offering [Member] | ||
Share Capital and Reserves (Details) - Schedule of common shares [Line Items] | ||
Number of shares (in Shares) | 1,780,000 | |
Issue Price (in Dollars per share) | $ 4.50 | |
Total | $ 8,010,000 | |
Allocated to Derivative Warrants Liability [Member] | ||
Share Capital and Reserves (Details) - Schedule of common shares [Line Items] | ||
Total | (1,958,000) | |
Private placement [Member] | ||
Share Capital and Reserves (Details) - Schedule of common shares [Line Items] | ||
Number of shares (in Shares) | 1,050,000 | |
Issue Price (in Dollars per share) | $ 4.25 | |
Total | $ 4,462,500 | |
Allocated to Additional Paid-in Capital [Member] | ||
Share Capital and Reserves (Details) - Schedule of common shares [Line Items] | ||
Total | (1,545,343) | |
Common Stock [Member] | ||
Share Capital and Reserves (Details) - Schedule of common shares [Line Items] | ||
Total | $ 6,052,000 | $ 2,917,157 |
Share Capital and Reserves (D_3
Share Capital and Reserves (Details) - Schedule of changes in share purchase warrants | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Mar. 31, 2021USD ($)$ / sharesshares | Mar. 31, 2021CAD ($)$ / sharesshares | Dec. 31, 2020USD ($)$ / sharesshares | Dec. 31, 2020CAD ($)$ / sharesshares | Jun. 30, 2020USD ($)$ / sharesshares | Jun. 30, 2020CAD ($)$ / sharesshares | |
Schedule of changes in share purchase warrants [Abstract] | ||||||
Number of balance at beginning | 1,780,000 | 1,780,000 | 910,297 | 910,297 | ||
Weighted Average Share Price balance at beginning | (per share) | $ 5.11 | $ 31.52 | $ 41.25 | |||
Aggregate Intrinsic Value at beginning | ||||||
Number of expired | (910,297) | (910,297) | ||||
Weighted Average Share Price expired | (per share) | $ 31.52 | $ 41.25 | ||||
Aggregate Intrinsic Value expired | ||||||
Number of balance at ending | 2,473,000 | 2,473,000 | 1,780,000 | 1,780,000 | ||
Weighted Average Share Price balance at ending | (per share) | $ 5.04 | $ 5.11 | ||||
Aggregate Intrinsic Value balance at ending | ||||||
Number of granted | 693,000 | 693,000 | 1,780,000 | 1,780,000 | ||
Weighted Average Share Price granted | (per share) | $ 4.85 | $ 5.11 | ||||
Aggregate Intrinsic Value granted |
Share-Based Payments (Details)
Share-Based Payments (Details) | 1 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Mar. 24, 2017 | Mar. 31, 2021USD ($)shares | Mar. 31, 2020USD ($) | Mar. 31, 2021USD ($)shares | Mar. 31, 2021USD ($)$ / sharesshares | Mar. 31, 2020USD ($) | Jun. 30, 2020$ / sharesshares | |
Share-based Payment Arrangement [Abstract] | |||||||
Issued and outstanding, percentage | 20.00% | ||||||
Options shares (in Shares) | shares | 718,620 | 718,620 | 718,620 | 455,507 | |||
Weighted average fair value per share (in Dollars per share) | $ / shares | $ 2.52 | $ 6.08 | |||||
Weighted average risk-free interest rate | 0.25% | 1.51% | |||||
Weighted average expected life | 3 years 73 days | 3 years 109 days | |||||
Weighted average volatility rate | 106.43% | 110.08% | |||||
Weighted average dividend yield | 0.00% | 0.00% | |||||
Weighted average forfeiture rate | 5.00% | 5.00% | |||||
Share-based payment transactions (in Dollars) | $ 207,302 | $ 203,869 | $ 389,343 | $ 838,304 | |||
Unrecognized compensation cost (in Dollars) | $ 527,122 | $ 527,122 | $ 527,122 | ||||
Weighted-average vesting period | 1 year 219 days |
Share-Based Payments (Details)
Share-Based Payments (Details) - Schedule of options activity | 9 Months Ended | 12 Months Ended | ||
Mar. 31, 2021$ / sharesshares | Mar. 31, 2021$ / sharesshares | Jun. 30, 2020$ / sharesshares | Jun. 30, 2020$ / sharesshares | |
Share-Based Payments (Details) - Schedule of options activity [Line Items] | ||||
Number of beginning balance | shares | 588,635 | 588,635 | 599,090 | 599,090 |
Number of Granted | shares | 339,250 | 339,250 | 52,728 | 52,728 |
Number of Expired/Forfeited | shares | (36,364) | (36,364) | (63,183) | (63,183) |
Number of ending balance | shares | 891,521 | 891,521 | 588,635 | 588,635 |
C$ [Member] | ||||
Share-Based Payments (Details) - Schedule of options activity [Line Items] | ||||
Weighted Average Exercise Price, beginning balance | $ 14.73 | $ 17.64 | ||
Weighted Average Exercise Price, Granted | 3.85 | 8.78 | ||
Weighted Average Exercise Price, Expired/Forfeited | 8.20 | 37.39 | ||
Weighted Average Exercise Price, ending balance | $ 10.85 | $ 14.73 | ||
US$ [Member] | ||||
Share-Based Payments (Details) - Schedule of options activity [Line Items] | ||||
Weighted Average Exercise Price, beginning balance | $ 10.81 | $ 13.48 | ||
Weighted Average Exercise Price, Granted | 3.06 | 6.44 | ||
Weighted Average Exercise Price, Expired/Forfeited | 6.52 | 27.43 | ||
Weighted Average Exercise Price, ending balance | $ 8.63 | $ 10.81 |
Lease Obligations (Details)
Lease Obligations (Details) - USD ($) | 9 Months Ended | |
Mar. 31, 2021 | Jul. 01, 2019 | |
Leases [Abstract] | ||
Operating lease right of use asset | $ 434,660 | |
lease liability | $ 385,057 | $ 385,057 |
Borrowing rate percentage | 8.00% | |
Variable operating costs | $ 62,423 |
Lease Obligations (Details) - S
Lease Obligations (Details) - Schedule of operating leases obligations - USD ($) | 9 Months Ended | |
Mar. 31, 2021 | Jul. 01, 2019 | |
Leases [Abstract] | ||
Lease obligations recognized as at July 1, 2019 | $ 385,057 | $ 385,057 |
Discounted using the incremental borrowing rate at July 1, 2019 | 8.00% | |
Estimated annual variable lease payments not included in lease obligations | $ 59,983 |
Lease Obligations (Details) -_2
Lease Obligations (Details) - Schedule of minimum lease payments | Mar. 31, 2021USD ($) | |
Schedule of minimum lease payments [Abstract] | ||
Less than one year | $ 158,158 | |
One to five years | 430,601 | |
More than five years | ||
Total undiscounted lease liabilities | $ 588,759 | [1] |
[1] | Excludes estimated variable operating costs of $62,423 on an annual basis through to August 31, 2024. |
Basic and Diluted Loss per Sh_3
Basic and Diluted Loss per Share (Details) - Schedule of weighted average number of common shares - USD ($) | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2021 | Mar. 31, 2020 | |
Schedule of weighted average number of common shares [Abstract] | ||||
Net loss for the period | $ (3,101,475) | $ (2,024,058) | $ (6,944,336) | $ (7,322,865) |
Basic and diluted loss per share | $ (0.41) | $ (0.39) | $ (1.11) | $ (1.40) |
Weighted average number of common shares - basic and diluted | 7,549,040 | 5,220,707 | 6,277,824 | 5,220,707 |
Non-Cash Transactions (Details)
Non-Cash Transactions (Details) - USD ($) | Mar. 31, 2021 | Jul. 01, 2019 |
Related Party Transactions [Abstract] | ||
Deferred financing costs | $ 138,927 | |
Right-of-use assets | $ 434,660 | |
Lease liability | $ 385,057 |
Commitments and Contingencies (
Commitments and Contingencies (Details) - USD ($) | 9 Months Ended | |
Mar. 31, 2021 | Jun. 30, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | ||
Materials and research services | $ 4,230,884 | |
Description of expenditures | A total of $4,208,745 of these expenditures are expected to occur in the twelve months following March 31, 2021 and the balance of $22,139 in the following twelve-month period. | |
Guaranteed investment | $ 45,724 | $ 42,193 |
Description of stock issued | the Company is committed to issue, subject to regulatory approval, up to 17,500 warrants to purchase 17,500 common shares upon the achievement of certain milestones. The exercise price of the warrants will be equal to the five-day VWAP of the common shares prior to each milestone achievement and the warrants will be exercisable for a period of three years for issuance date. |
Financial Risk Management (Deta
Financial Risk Management (Details) | 1 Months Ended | 9 Months Ended | 12 Months Ended | ||||
Nov. 16, 2020USD ($)$ / shares | Mar. 31, 2021USD ($) | Mar. 31, 2020USD ($) | Dec. 31, 2020USD ($)$ / shares | Jun. 30, 2020USD ($) | Mar. 31, 2021CAD ($) | Mar. 31, 2021EUR (€) | |
Financial Risk Management (Details) [Line Items] | |||||||
Expected risk free interest rate | 0.25% | 1.51% | |||||
Expected life in years | 3 years 73 days | 3 years 109 days | |||||
Accounts payable and accrued liabilities | $ 1,939,249 | $ 2,438,694 | |||||
Foreign exchange loss (gain) | 30,385 | ||||||
Cash and cash equivalents | 3,460,601 | $ 4,307,407 | |||||
Non-interest bearing | 5,993,512 | 1,498,402 | |||||
Short-term investments | 9,499,878 | 5,848,193 | |||||
Current liabilities | 1,714,295 | 1,676,268 | |||||
Working capital surplus | $ 9,182,409 | 4,636,189 | |||||
U.S. dollar [Member] | |||||||
Financial Risk Management (Details) [Line Items] | |||||||
Foreign currency risk, percentage | 1.00% | ||||||
Effect on gain or loss | $ 19,392 | ||||||
Euro [Member] | |||||||
Financial Risk Management (Details) [Line Items] | |||||||
Foreign currency risk, percentage | 1.00% | ||||||
Effect on gain or loss | $ 239 | ||||||
Foreign exchange loss (gain) | 35,033 | $ 1,678 | |||||
Cash and cash equivalents | 23,878 | € 20,346 | |||||
Black-Scholes Valuation Model [Member] | |||||||
Financial Risk Management (Details) [Line Items] | |||||||
Exercise price (in Dollars per share) | $ / shares | $ 5.11 | $ 5.11 | |||||
Expected risk free interest rate | 0.45% | 0.45% | |||||
Expected annual volatility | 46.32% | 45.32% | |||||
Expected life in years | 6 years | 5 years 328 days | |||||
Expected annual dividend yield | |||||||
Guaranteed investment | $ 45,724 | $ 42,193 |
Financial Risk Management (De_2
Financial Risk Management (Details) - Schedule of financial instruments - USD ($) | Mar. 31, 2021 | Jun. 30, 2020 |
Derivatives, Fair Value [Line Items] | ||
Cash and cash equivalents | $ 9,454,113 | $ 5,805,809 |
Short-term investments | 45,765 | 42,384 |
Accounts receivable | 70,300 | 45,344 |
Total financial assets | 9,570,178 | 5,893,537 |
Accounts payable and accrued liabilities | 1,635,477 | 1,607,303 |
Total financial liabilities | 1,635,477 | 1,607,303 |
Level 1 [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Cash and cash equivalents | 9,454,113 | 5,805,809 |
Short-term investments | ||
Accounts receivable | ||
Total financial assets | 9,454,113 | 5,805,809 |
Accounts payable and accrued liabilities | ||
Total financial liabilities | ||
Level 2 [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Cash and cash equivalents | ||
Short-term investments | 45,765 | 42,384 |
Accounts receivable | 70,300 | 45,344 |
Total financial assets | 116,065 | 87,728 |
Accounts payable and accrued liabilities | 1,635,477 | 1,607,303 |
Total financial liabilities | $ 1,635,477 | $ 1,607,303 |