Document and Entity Information
Document and Entity Information | 12 Months Ended |
Dec. 31, 2020shares | |
Entity Addresses [Line Items] | |
Entity Central Index Key | 0001734768 |
Current Fiscal Year End Date | --12-31 |
Document Fiscal Year Focus | 2020 |
Document Fiscal Period Focus | FY |
Document Type | 40-F |
Amendment Flag | false |
Document Registration Statement | false |
Document Annual Report | true |
Annual information form | true |
Audited annual financial statements | true |
Document Period End Date | Dec. 31, 2020 |
Entity File Number | 001-38480 |
Entity Registrant Name | IMV Inc. |
Entity Incorporation, State or Country Code | A5 |
Entity Address, Address Line One | 130 Eileen Stubbs Avenue |
Entity Address, Address Line Two | Suite 19 Dartmouth |
Entity Address, State or Province | NS |
Entity Address, City or Town | Nova Scotia |
Entity Address, Postal Zip Code | B3B 2C4 |
Entity Address Country | CA |
City Area Code | 902 |
Local Phone Number | 492-1819 |
Title of 12(b) Security | Common Shares |
Trading Symbol | IMV |
Name of Exchange on which Security is Registered | NASDAQ |
Entity Common Stock, Shares Outstanding | 67,093,547 |
Entity Current Reporting Status | Yes |
Entity Interactive Data Current | Yes |
Entity Emerging Growth Company | true |
Entity Ex Transition Period | false |
Auditor Attestation Flag | false |
Business Contact [Member] | |
Entity Addresses [Line Items] | |
Contact Personnel Name | C-T Corporation System |
Entity Address, Address Line One | 28 Liberty Street |
Entity Address, State or Province | NY |
Entity Address, City or Town | NY |
Entity Address, Postal Zip Code | 10005 |
City Area Code | 212 |
Local Phone Number | 894-8940 |
Consolidated Statements of Fina
Consolidated Statements of Financial Position - CAD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Current assets | ||
Cash and cash equivalents | $ 46,362 | $ 14,066 |
Amounts receivable (note 6) | 2,012 | 845 |
Prepaid expenses | 5,645 | 3,032 |
Investment tax credits receivable | 1,942 | 1,661 |
Total Current assets | 55,961 | 19,604 |
Property and equipment (note 8) | 2,839 | 2,830 |
Total Assets | 58,800 | 22,434 |
Current liabilities | ||
Accounts payable, accrued and other liabilities (note 10) | 9,240 | 6,217 |
Current portion of long-term debt (note 9) | 1,094 | 88 |
Current portion of lease obligation (note 7) | 139 | 100 |
Total Current liabilities | 10,473 | 6,405 |
Lease obligation (note 7) | 1,218 | 1,208 |
Long-term debt (note 9) | 7,734 | 8,373 |
Total Liabilities | 19,425 | 15,986 |
Equity | 39,375 | 6,448 |
Total liabilities and equity | $ 58,800 | $ 22,434 |
Consolidated Statements of Equi
Consolidated Statements of Equity - CAD ($) $ in Thousands | Share Capital [Member] | Contributed Surplus [Member] | Warrants [Member] | Deficit [Member] | Total |
Balance at Dec. 31, 2018 | $ 90,152 | $ 6,504 | $ 415 | $ (92,754) | $ 4,317 |
Net loss and comprehensive loss for the year | (27,365) | (27,365) | |||
Issuance of shares in public equity offering | 29,456 | 29,456 | |||
Share issuance costs in a public equity offering | (2,499) | (2,499) | |||
Issuance of shares and warrants in private placement | |||||
Share and warrant issuance costs in private placement | |||||
Deferred share units ("DSU") settled in shares: | |||||
Reclassification of units to equity-settled | 955 | 955 | |||
Value of services recognized | 290 | 290 | |||
Warrants exercised | 82 | (21) | 61 | ||
Warrants expired | 62 | (62) | |||
Employee share options: | |||||
Value of services recognized | 1,138 | 1,138 | |||
Exercise of options | 353 | (258) | 95 | ||
Balance at Dec. 31, 2019 | 117,544 | 8,691 | 332 | (120,119) | 6,448 |
Net loss and comprehensive loss for the year | (34,855) | (34,855) | |||
Issuance of shares in public equity offering | 40,824 | 40,824 | |||
Share issuance costs in a public equity offering | (2,039) | (2,039) | |||
Issuance of shares and warrants in private placement | 21,307 | 3,775 | 25,082 | ||
Share and warrant issuance costs in private placement | (152) | 152 | |||
Deferred share units ("DSU") settled in shares: | |||||
Redemption of DSU's, net of applicable taxes | 184 | (189) | (5) | ||
Warrants exercised | 3,029 | (753) | 2,276 | ||
Warrants expired | 332 | (332) | |||
DSUs: | |||||
Value of services recognized | 537 | 537 | |||
Employee share options: | |||||
Value of services recognized | 1,005 | 1,005 | |||
Exercise of options | 658 | (404) | 254 | ||
Balance at Dec. 31, 2020 | $ 181,355 | $ 9,972 | $ 3,022 | $ (154,974) | $ 39,375 |
Consolidated Statements of Loss
Consolidated Statements of Loss and Comprehensive Loss - CAD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Revenue | ||
Subcontract revenue | $ 3 | $ 59 |
Interest income | 298 | 509 |
Total Revenue | 301 | 568 |
Expenses | ||
Research and development | 26,605 | 18,986 |
General and administrative | 15,205 | 10,140 |
Government assistance (note 5) | (6,690) | (2,432) |
Accreted interest and valuation adjustments (note 9) | 36 | 1,239 |
Total Expenses | 35,156 | 27,933 |
Net loss and comprehensive loss for the year | $ (34,855) | $ (27,365) |
Basic and diluted loss per share | $ (0.58) | $ (0.55) |
Weighted-average shares outstanding | 60,305,264 | 49,653,578 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - CAD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Cash provided by (used in) Operating activities | ||
Net loss and comprehensive loss for the year | $ (34,855) | $ (27,365) |
Charges to operations not involving cash | ||
Depreciation of property and equipment | 515 | 528 |
Accreted interest and valuation adjustments | 36 | 1,239 |
Deferred share unit compensation | 537 | (191) |
Stock-based compensation | 1,005 | 1,138 |
Loss on disposal of assets | 73 | 1 |
Fair value adjustment on government loan | (628) | (840) |
Charges to operations not involving cash | (33,317) | (25,490) |
Net change in non-cash working capital balances related to operations | ||
(Increase) decrease in amounts receivable | (1,067) | 492 |
Increase in prepaid expenses | (1,859) | (333) |
Increase in investment tax credits receivable | (281) | (550) |
Increase (decrease) in accounts payable and other liabilities | 1,779 | (1,407) |
Cash provided by (used in) Operating activities | (34,745) | (27,288) |
Financing activities | ||
Proceeds from issuance of share capital and warrants in private placement | 25,082 | |
Share and warrant issuance costs in private placement | (152) | |
Proceeds from public equity offering | 40,824 | 29,456 |
Share Issuance costs in public equity offering | (2,039) | (2,499) |
Proceeds from the exercise of stock options | 254 | 95 |
Proceeds from short-term borrowing | 3,130 | |
Repayment of short-term borrowing | (2,645) | |
Proceeds from the exercise of warrants | 2,276 | 61 |
Proceeds from long-term debt | 900 | |
Repayment of long-term debt | (41) | (88) |
Repayment of lease obligation | (106) | (90) |
Cash provided by (used in) financing activities | 67,483 | 26,935 |
Investing activities | ||
Acquisition of property and equipment | (442) | (476) |
Net change in cash and cash equivalents during the year | 32,296 | (829) |
Cash and cash equivalents - Beginning of year | 14,066 | 14,895 |
Cash and cash equivalents - End of year | 46,362 | 14,066 |
Supplementary cash flow | ||
Interest received | $ 298 | $ 509 |
Nature of operations
Nature of operations | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure of nature of operations and going concern [Abstract] | |
Nature of operations | 1 Nature of operations IMV Inc. (the “Corporation” or “IMV”) is, through its 100% owned subsidiary, a biopharmaceutical company committed to improving the treatment of cancer and giving patients with hard-to-treat cancers a chance to enjoy a long and healthy life. IMV is using its DPX delivery technology (“DPX platform” or “DPX”) to generate targeted, specific and sustainable immune activation. The Corporation is developing a portfolio of DPX-based immunotherapies that address unmet medical needs, and its lead candidate, maveropepimut-S (DPX-Survivac) is a pipeline in a product that generates sustained and targeted immune responses against survivin, a tumor-associated protein, overexpressed in a high number of tumor types. Maveropepimut-S, in association with low dose cyclophosphamide used as an immune modulator, is being evaluated in three phase 2 clinical trials across 6 different cancer indications with and without Merck’s Keytruda ® The Corporation has one reportable and geographic segment. Incorporated under the Canada Business Corporations Act and domiciled in Dartmouth, Nova Scotia, the shares of the Corporation are listed on the Nasdaq Stock Market and the Toronto Stock Exchange under the symbol “IMV”. The address of its principal place of business is 130 Eileen Stubbs Avenue, Suite 19, Dartmouth, Nova Scotia, Canada. An outbreak of a novel strain of coronavirus, identified as “COVID-19”, was declared a global pandemic by the World Health Organization on March 11, 2020. To date, COVID-19 has not had a material impact on the Corporation’s financial condition, liquidity or longer-term strategic development and commercialization plans. The extent to which COVID-19 may cause more significant disruptions to IMV’s business and greater impacts to results of operations will depend on future developments, which are highly uncertain and cannot be predicted with confidence, such as the duration and severity of outbreaks, including potential future waves or cycles, and the effectiveness of actions to contain and treat COVID-19. The Corporation cannot predict the duration, scope and severity of any potential business shutdowns or disruptions, including to ongoing and planned clinical studies and regulatory approval prospects. Further prolonged shutdowns or other business interruptions could result in material and negative effects to the Corporation’s ability to conduct its business in the manner and on the timelines currently planned, which could have a material adverse impact on IMV’s business, results of operations, and financial condition. The COVID-19 pandemic continues to rapidly evolve, and the Corporation will continue to monitor the effects of COVID-19 on its business. |
Basis of presentation
Basis of presentation | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure of basis of presentation [Abstract] | |
Basis of presentation | 2 Basis of presentation The Corporation prepares its consolidated financial statements in accordance with Canadian generally accepted accounting principles as set out in the Chartered Professional Accountants of Canada Handbook – Accounting Part I, which incorporates International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board (“IASB”). These consolidated financial statements were approved by the Board of Directors on March 16, 2021. |
New standards and interpretatio
New standards and interpretations not yet adopted | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure of New standards and interpretations not yet adopted [Abstract] | |
New standards and interpretations not yet adopted | 3 New standards and interpretations not yet adopted In January 2020, the IASB issued amendments to Presentation of financial statements (“IAS 1”) to provide a more general approach to the classification of liabilities under IAS 1 based on the contractual arrangements in place at the reporting date. The amendments to IAS 1 are effective for annual reporting periods beginning on or after January 1, 2023. There are no other standards, interpretations or amendments to existing standards that are not yet effective that are expected to have a material impact on the consolidated financial statements of the Corporation. |
Significant accounting policies
Significant accounting policies, judgments and estimation uncertainty | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure of significant accounting policies, judgments and estimation uncertainty [Abstract] | |
Significant accounting policies, judgments and estimation uncertainty | 4 Significant accounting policies, judgments and estimation uncertainty Basis of measurement The consolidated financial statements have been prepared under the historical cost convention. Consolidation The financial statements of the Corporation consolidate the accounts of IMV Inc. and its subsidiary. All intercompany transactions, balances and unrealized gains and losses from intercompany transactions are eliminated on consolidation. There are no non-controlling interests, therefore, all loss and comprehensive loss is attributable to the shareholders of the Corporation. Foreign currency translation i) Functional and presentation currency Items included in the consolidated financial statements of the Corporation are measured using the currency of the primary economic environment in which the entity operates (the “functional currency”). The consolidated financial statements are presented in Canadian dollars, which is the Corporation’s functional currency. ii) Transactions and balances Foreign currency translation of monetary assets and liabilities, denominated in currencies other than the Corporation’s functional currency, are converted at the rate of exchange in effect at the consolidated statements of financial position date. Revenue and expense items are translated at the rate of exchange in effect at the transaction date. Translation gains or losses are included in determining income or loss for the year. Foreign exchange loss of $1,259 for the year ended December 31, 2020 (2019 - $84 gain) is included in general and administrative expenses. Cash and cash equivalents Cash and cash equivalents include cash on hand, balances with banks, and highly liquid temporary investments that are readily convertible to known amounts of cash. (2) IMV Inc. Notes to the Consolidated Financial Statements For the years ended December 31, 2020 and 2019 (Expressed in thousands of Canadian dollars except for share and per share amounts) 4 Significant accounting policies, judgments and estimation uncertainty Financial instruments Financial assets and liabilities are recognized when the Corporation becomes a party to the contractual provisions of the instrument. Financial assets are derecognized when the rights to receive cash flows from the assets have expired or have been transferred and the Corporation has transferred substantially all risks and rewards of ownership. Financial assets and liabilities are offset and the net amount is reported in the consolidated statements of financial position when there is a legally enforceable right to offset the recognized amounts and there is an intention to settle on a net basis, or realize the asset and settle the liability simultaneously. The Corporation recognizes financial instruments based on their classification. Depending on the financial instruments’ classification, changes in subsequent measurements are recognized in net loss and comprehensive loss. Financial instruments do not include amounts due to or from government entities. The Corporation has implemented the following classifications: • Cash and cash equivalents and amounts receivable are classified as amortized cost (previously loans and receivables). After their initial fair value measurement, they are measured at amortized cost using the effective interest method; and • Accounts payable, accrued and other liabilities, amounts due to directors and long-term debt are classified as other amortized cost (previously financial liabilities). After their initial fair value measurement, they are measured at amortized cost using the effective interest method. Impairment of financial assets The Corporation applies the simplified method of the expected credit loss model required under IFRS 9, Financial Instruments. Under this method, the Corporation estimates a lifetime expected loss allowance for all receivables. Receivables are written off when there is no reasonable expectation of recovery. If there is objective evidence that an impairment loss has incurred, the amount of the loss is measured as the difference between the asset’s carrying amount and the present value of estimated future cash flows. The present value of the estimated future cash flows is discounted at the financial asset’s original effective interest rate. Property and equipment Property and equipment are stated at cost less accumulated depreciation and accumulated impairment losses. Cost includes expenditures that are directly attributable to the acquisition of the asset. 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 Corporation and the cost can be measured reliably. The carrying amount of a replaced asset is derecognized when replaced. Repairs and maintenance costs are charged to the consolidated statements of loss and comprehensive loss during the period in which they are incurred. (3) IMV Inc. Notes to the Consolidated Financial Statements For the years ended December 31, 2020 and 2019 (Expressed in thousands of Canadian dollars except for share and per share amounts) 4 Significant accounting policies, judgments and estimation uncertainty Property and equipment Depreciation of property and equipment is calculated using the declining-balance method, with the exception of leasehold improvements, right-of-use assets and leased premises, at the following annual rates: Computer equipment 30% Computer software 100% Furniture and fixtures 20% Laboratory equipment 20% Leasehold improvements and right-of-use assets straight-line Residual values, method of depreciation and useful lives of the assets are reviewed annually and adjusted if appropriate. Gains and losses on disposals of property and equipment are determined by comparing the proceeds with the carrying amount of the asset and are included as part of general and administrative expenses in the consolidated statements of loss and comprehensive loss. Property and equipment and intangible assets are tested for impairment when events or changes in circumstances indicate that the carrying amount may not be recoverable. For the purpose of measuring recoverable amounts, assets are grouped at the lowest levels for which there are separately identifiable cash flows (cash-generating units or “CGU”s). The recoverable amount is the higher of an asset’s fair value less the costs to sell, and value in use (being the present value of the expected future cash flows of the relevant asset or CGU). An impairment loss is recognized for the amount by which the asset’s carrying amount exceeds its recoverable amount. The Corporation evaluates impairment losses for potential reversals when events or circumstances warrant such consideration. Leases Under IFRS 16, Leases, the Corporation assesses whether a contract is or contains a lease based on the definition of a lease. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. To assess whether a contract conveys the right to control the use of an identified asset, the Corporation assesses whether: • the contract involves the use of an identified asset, specified either explicitly or implicitly, that is physically distinct, and usage represents substantially all of the capacity of the asset; • the Corporation has the right to obtain substantially all of the economic benefits from use of the asset; and • the Corporation has the right to direct use of the asset, which is evidenced by decision-making rights to direct how and for what purpose the asset is used. The Corporation recognizes an asset and a lease liability at the lease commencement date. (4) IMV Inc. Notes to the Consolidated Financial Statements For the years ended December 31, 2020 and 2019 (Expressed in thousands of Canadian dollars except for share and per share amounts) 4 Significant accounting policies, judgments and estimation uncertainty Leases The asset is initially measured at cost, which comprises the initial amount of the lease liability adjusted for any lease payments made at or before the commencement date, plus any initial direct costs incurred, less any incentives received. The asset is subsequently depreciated using the straight-line method from the commencement date to the earlier of the end of the useful life of the asset or the end of the lease term. The estimated useful lives of leased assets are determined on the same basis as those of property and equipment. The carrying amount of the leased asset is periodically reduced by impairment losses, if any, and adjusted for certain remeasurements of the lease liability, if any. The lease liability is initially measured at the present value of future lease payments, discounted using the interest rate implicit in the lease, or, if that rate cannot be readily determined, the Corporation’s incremental borrowing rate. Generally, the Corporation uses its incremental borrowing rate as the discount rate. The lease liability is subsequently measured at amortized cost using the effective interest method. It is remeasured if the Corporation changes its assessment of whether it will exercise a purchase, extension, or termination option. If the lease liability is remeasured in this way, a corresponding adjustment is made to the carrying amount of the leased asset, or is recorded in the consolidated statements of loss and comprehensive loss if the carrying value of the leased asset is zero. The Corporation has elected not to recognize assets and lease liabilities for short-term leases with a term of 12 months or less, and leases of low value assets. The lease payments associated with these leases are recognized as an expense in the consolidated statements of loss and comprehensive loss over the lease term. Low value assets consist primarily of computers and information technology equipment. Income tax Income tax is comprised of current and deferred income tax. Income tax is recognized in the consolidated statements of loss and comprehensive loss except to the extent that it relates to items recognized directly in equity, in which case the income tax is also recognized directly in equity. Current tax is the expected tax payable on the taxable income for the year, using tax rates enacted or substantively enacted, at the end of the reporting period, and any adjustment to tax payable in respect of previous years. In general, deferred income tax is recognized in respect of temporary differences including non-refundable investment tax credits, arising between the tax bases of assets and liabilities and their carrying amounts in the consolidated financial statements. Deferred income tax is determined on a non-discounted basis using tax rates and laws that have been enacted or substantively enacted at the consolidated statements of financial position date and are expected to apply when the deferred income tax asset or liability is settled. Deferred income tax assets are recognized to the extent that it is probable that the assets can be recovered. (5) IMV Inc. Notes to the Consolidated Financial Statements For the years ended December 31, 2020 and 2019 (Expressed in thousands of Canadian dollars except for share and per share amounts) 4 Significant accounting policies, judgments and estimation uncertainty Research and development Deferred income tax is provided on temporary differences arising on investments in subsidiaries and associates, except in the case of subsidiaries, where the timing of the reversal of the temporary difference is controlled by the Corporation and it is probable that the temporary difference will not reverse in the foreseeable future. Deferred income tax assets and liabilities are presented as non-current. All research costs are expensed in the period incurred. Development costs are expensed in the period incurred, unless they meet the criteria for capitalization, in which case, they are capitalized and then amortized over the useful life. Development costs are written off when there is no longer an expectation of future benefits. Revenue recognition Revenue is recognized as the Corporation satisfies its performance obligations under the terms of the contract. Performance obligations are considered to be satisfied when the customer obtains control of the related asset. Current and expected future revenue streams include: (i) milestone payments generated upon entering into potential contractual partnerships and achieving development and sales milestones; (ii) future royalties generated from the eventual commercialization of the Corporation’s products; and (iii) amounts generated for providing formulation and research support services related to existing licensing and research agreements with partners. Revenue resulting from formulation services is recognized in the accounting period in which the formulation is delivered to the customer. Typically, the customer does not have control of the asset while services are being performed and, therefore, revenues are recognized at the time the Corporation has completed its obligation and the customer obtains control of the asset. Revenue resulting from research support services is recognized over time as the services are performed, as the customer benefits simultaneously from the service, and as the Corporation satisfies its performance obligation. The Corporation expects to generate upfront payments, milestone and royalty revenues from future licenses for the Corporation’s products. Upfront payments and milestones will be recognized as revenue when or as the underlying obligations are achieved and are not conditional on any further performance, which could be at a point in time or over time depending on the contractual terms. Royalty revenue will be recognized in the period in which the Corporation earns the royalty. The Corporation does not generate licensing or royalty revenues at this time. Share capital Common shares are classified as equity. Incremental costs directly attributable to the issuance of shares are recognized as a deduction from share capital. (6) IMV Inc. Notes to the Consolidated Financial Statements For the years ended December 31, 2020 and 2019 (Expressed in thousands of Canadian dollars except for share and per share amounts) 4 Significant accounting policies, judgments and estimation uncertainty Loss per share Basic loss per share (“LPS”) is calculated by dividing the net loss for the year attributable to equity owners of the Corporation by the weighted average number of common shares outstanding during the year. Diluted LPS is calculated by adjusting the weighted average number of common shares outstanding for dilutive instruments. The number of shares included with respect to options, warrants and similar instruments is computed using the treasury stock method. Diluted LPS is equal to the LPS as the Corporation is in a loss position and all securities, comprised of options and warrants, would be anti-dilutive. Stock-based compensation plan The Corporation grants stock options to certain employees and non-employees. Beginning January 1, 2018, stock options vest over three years (33 ⅓% per year) and expire after five years. Each tranche in an award is considered a separate award with its own vesting period and grant date fair value. Fair value of each tranche is measured at the date of grant using the Black-Scholes option pricing model. Compensation expense is recognized over the tranche's vesting period by increasing contributed surplus based on the number of awards expected to vest. The number of awards expected to vest is reviewed at least annually, with any impact being recognized immediately. A holder of an option may, rather than exercise such option, elect a cashless exercise of such option payable in common shares equaling the amount by which the value of an underlying share at that time exceeds the exercise price of such option or warrant to acquire such share. Deferred share unit plan (“DSU Plan) The Corporation grants deferred share units (“DSUs”) to members of its Board of Directors (“Board Members”), who are not employees or officers of the Corporation. DSUs cannot be redeemed until the holder is no longer a director of the Corporation and are considered equity-settled instruments. In accordance with the DSU Plan, DSUs for ongoing services are granted quarterly and vest immediately. The Board Members can also grant DSUs at its discretion, which may vest over time. The value attributable to DSUs is based on the market value at the time of grant and a compensation expense is recognized in general and administrative expenses on the consolidated statements of loss and comprehensive loss in accordance with the vesting terms. At the time of redemption, each DSU may be exchanged for one common share of IMV Inc. Government assistance Government assistance consists of non-repayable government grants, from a number of government agencies and the difference between the fair value and the book value of repayable low-interest government loans, recorded initially at fair value. Government assistance is recorded in the period earned using the cost reduction method and is included in government assistance on the consolidated statements of loss and comprehensive loss. As at December 31, 2020, $1,322 (2019 - $nil) of government assistance is included in amounts receivable. (7) IMV Inc. Notes to the Consolidated Financial Statements For the years ended December 31, 2020 and 2019 (Expressed in thousands of Canadian dollars except for share and per share amounts) 4 Significant accounting policies, judgments and estimation uncertainty Research and development tax credits Refundable investment tax credits relating to scientific research and experimental development expenditures (“SR&ED”) are recorded in the accounts in the fiscal period in which the qualifying expenditures are incurred provided there is reasonable assurance that the tax credits will be realized. Refundable investment tax credits, in connection with SR&ED activities, are accounted for using the cost reduction method and included in government assistance on the statements of loss and comprehensive loss. Amounts recorded for refundable investment tax credits are calculated based on the expected eligibility and tax treatment of qualifying SR&ED expenditures recorded in the Corporation’s consolidated financial statements. Critical accounting estimates and judgments The Corporation makes estimates and assumptions concerning the future that will, by definition, seldom equal actual results. The following are the estimates and judgments applied by management that most significantly affect the Corporation’s consolidated financial statements. The following estimates and judgments have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year. Calculation of initial fair value and carrying amount of long-term debt Atlantic Canada Opportunities Agency (“AOCA”) conditionally repayable loans (“Conditional ACOA”) loans The initial fair value of the Conditional ACOA loans is determined by using a discounted cash flow analysis for each of the loans, which require a number of assumptions. The difference between the face value and the initial fair value of the Conditional ACOA loans is recorded in the consolidated statements of loss and comprehensive loss as government assistance. The carrying amount of the Conditional ACOA loans requires management to adjust the long-term debt to reflect actual and revised estimated cash flows whenever revised cash flow estimates are made or new information related to market conditions is made available. Management recalculates the carrying amount by computing the present value of the estimated future cash flows at the original effective interest rate. Any adjustments are recognized in the consolidated statements of loss and comprehensive loss as accreted interest and other adjustments after initial recognition. The significant assumptions used in determining the discounted cash flows include estimating the amount and timing of future revenue for the Corporation and the discount rate. As the Conditional ACOA loans are repayable based on a percentage of gross revenue, if any, the determination of the amount and timing of future revenue significantly impacts the initial fair value of the loan, as well as the carrying value of the Conditional ACOA loans at each reporting date. The expected revenue streams include i) estimated royalties generated from the eventual commercialization of the Corporation’s products, and ii) estimated milestone payments generated upon entering into potential contractual partnerships and achieving development and sales milestones. The amount and timing of estimated milestone payments forecasted are (8) IMV Inc. Notes to the Consolidated Financial Statements For the years ended December 31, 2020 and 2019 (Expressed in thousands of Canadian dollars except for share and per share amounts) 4 Significant accounting policies, judgments and estimation uncertainty Critical accounting estimates and judgments earlier and less predictable, therefore, changes in the amount and timing of milestone payments could have a significant impact on the fair value of the loans. Further, the Corporation is in the early stages of research for its product candidates; accordingly, determination of the amount and timing of any revenue streams requires significant judgment by management. The discount rate determined on initial recognition of the Conditional ACOA loans is used to determine the present value of estimated future cash flows expected to be required to settle the debt. In determining the appropriate discount rates, the Corporation considered the interest rates of similar long-term debt arrangements with similar terms. The Conditional ACOA loans are repayable based on a percentage of gross revenue, if any; accordingly, finding financing arrangements with similar terms is difficult and management was required to use significant judgment in determining the appropriate discount rates. Management used a discount rate of 35% to discount the Conditional ACOA loans. If the weighted average discount rate used in determining the initial fair value and the carrying value at each reporting date of all Conditional ACOA loans, with repayment terms based on future revenue, had been determined to be higher by 10%, or lower by 10%, the carrying value of the long-term debt as at December 31, 2020 would have been an estimated $834 lower or $1,131 higher, respectively. A 10% increase or decrease in the total forecasted revenue would not have a significant impact on the amount recorded for the loans. If the total forecasted revenue were reduced to $nil, no amounts would be forecast to be repaid on the Conditional ACOA loans, and the Conditional ACOA loans payable at December 31, 2020 would be recorded at $nil, which would be a reduction in the liability of $4,246. If the timing of the receipt of forecasted future revenue was delayed by two years, the carrying value of the long-term debt at December 31, 2020 would have been an estimated $1,915 lower. Province of Nova Scotia (“the Province”) loan The initial fair value of the Province loan is determined by using a discounted cash flow analysis for the loan. The interest rate on the loan is below the market rate for a commercial loan with similar terms. The significant assumption used in determining the discounted cash flows is the discount rate. Any changes in the discount rate would impact the amount recorded as initial fair value of the long-term debt and the carrying value of the long-term debt at each reporting date. In determining the appropriate discount rate, the Corporation considers the interest rates of similar long-term debt arrangements with similar terms. The Province loan is a government loan with principal payments only beginning after seven years; accordingly, finding financing arrangements with similar terms is difficult and management was required to use significant judgment in determining the appropriate discount rates. Management used a discount rate of 11% to discount the Province loan. If the discount rate used for the Province loan had been determined to be higher or lower by 5% (resulting in discount rates of 16% or 6%, respectively), the carrying value of the long-term debt at December 31, 2020 would have been an estimated $501 lower or $597 higher, respectively. The difference between the book value and the initial fair value of the Province loan is recorded in the consolidated statements of loss and comprehensive loss as government assistance on initial recognition. (9) IMV Inc. Notes to the Consolidated Financial Statements For the years ended December 31, 2020 and 2019 (Expressed in thousands of Canadian dollars except for share and per share amounts) 4 Significant accounting policies, judgments and estimation uncertainty Critical accounting estimates and judgments Province of Nova Scotia (“the Province”) loan (continued) Any changes in the amounts recorded on the consolidated statements of financial position for the Province loan result in an offsetting charge to accreted interest after initial recognition in the consolidated statements of loss and comprehensive loss. |
Government grants and assistanc
Government grants and assistance | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure of Government grants and assistance [Abstract] | |
Government grants and assistance | 5 Government grants and assistance The Corporation is evaluating all applicable government relief programs. Notably, in response to the negative economic impact of COVID-19, the Government of Canada, in collaboration with the National Research Council of Canada Industrial Research Assistance Program (“NRC IRAP”), announced the Innovation Assistance Program (“IAP”) program in April 2020. IAP provides a wage subsidy on eligible remuneration, subject to limits per employee, to eligible employers pursuing technology driven innovation who are not eligible for funding under the Canada Emergency Wage Subsidy. The Corporation qualified for this subsidy from the April 1, 2020 effective date through to June 23, 2020, and has, accordingly, recognized $601 of IAP during the year ended December 31, 2020, in government assistance on the consolidated statements of loss and comprehensive loss. As at December 31, 2020, this funding has been fully received. In May 2020, the Corporation qualified for $378 in NRC IRAP funding toward the development of its COVID-19 vaccine candidate, DPX-COVID-19. Under this program, NRC IRAP will reimburse up to 80% of eligible project salaries and 50% of eligible contractor costs. In July 2020, the Corporation qualified to receive an additional $259 in funding under the terms of this contribution agreement, resulting in a maximum contribution of $637. As at December 31, 2020, the Corporation has recognized $637 of this NRC IRAP funding in government assistance on the consolidated statements of loss and comprehensive loss. As at December 31, 2020, there is $45 in receivables related to this funding. In July 2020, the Corporation qualified for $2,500 in project funding from Next Generation Manufacturing Canada (“NGen”) to support the rapid development of DPX-COVID-19. Under this program, NGen will reimburse up to 50% of eligible project expenses. The Corporation received advances of $2,054 from NGen in 2020 related to this funding and as at December 31, 2020, $1,568 of the advance has been recognized in government assistance on the consolidated statements of loss and comprehensive loss and $486 has been recorded as a deferred contribution in accounts payable, accrued and other liabilities on the consolidated statements of financial position. The deferred contribution will be recognized in the consolidated statements of loss and comprehensive loss on the same basis as eligible project expenses are incurred. In August 2020, the Corporation qualified for COVID-19 project funding from ACOA. ACOA’s contribution is an interest free government loan with a maximum contribution of $1 million conditionally repayable based on a percentage of revenue only from resulting COVID-19 vaccine revenue. As at December 31, 2020, there is $100 in receivables related to this ACOA funding. The loan was initially recorded at its fair value and subsequently measured at amortized cost in long-term debt on the consolidated statements of financial position. (10) IMV Inc. Notes to the Consolidated Financial Statements For the years ended December 31, 2020 and 2019 (Expressed in thousands of Canadian dollars except for share and per share amounts) 5 Government grants and assistance In October 2020, the Corporation qualified for an additional $5.4 million in project funding from NRC IRAP, to support the continuation of clinical development for IMV’s DPX-COVID-19 vaccine candidate. Under this program, NRC IRAP will reimburse up to 100% of eligible project salaries and 75% of eligible contractor and materials costs. As at December 31, 2020, the Corporation has recognized $1,505 of this NRC IRAP funding in government assistance on the consolidated statements of loss and comprehensive loss. As at December 31, 2020 there is $1,167 in receivables related to this funding. In March 2021, IMV qualified for an additional $500 in project funding under this program. |
Amounts receivable
Amounts receivable | 12 Months Ended |
Dec. 31, 2020 | |
Trade and other current receivables [abstract] | |
Amounts receivable | 6 Amounts receivable 2020 2019 $ $ Amounts due from government assistance and government loans 1,322 - Sales tax receivable 481 406 Revenue from subcontracts - 45 Other 209 394 2,012 845 |
Lease obligation
Lease obligation | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure of maturity analysis of operating lease payments [abstract] | |
Lease obligation | 7 Lease obligation Amount $ Balance – December 31, 2018 1,398 Repayment of lease obligation (239 ) Accreted interest 149 Balance – December 31, 2019 1,308 Additions 155 Repayment of lease obligation (252 ) Accreted interest 146 Balance – December 31, 2020 1,357 Less: Current portion 139 Non-current portion 1,218 The Corporation recognizes a right-of-use asset and lease liability at the lease commencement date. The right-of-use asset is initially measured at cost, which comprises the initial amount of the liability, discounted at an incremental borrowing rate of 11%, adjusted for any payments made before the commencement date, plus any initial direct costs, less any lease incentives received. During the year ended December 31, 2020, the Corporation recognized $176 (2019 - $nil) in right-of-use assets in property and equipment on the statements of financial (11) IMV Inc. Notes to the Consolidated Financial Statements For the years ended December 31, 2020 and 2019 (Expressed in thousands of Canadian dollars except for share and per share amounts) 7 Lease obligation position and recognized $20 in expenses related to low-value and short-term leases (2019 - $20) and $170 (2019 - $161) related to variable lease payments not included in measurement of lease liabilities on the consolidated statements of loss and comprehensive loss. |
Property, plant and equipment
Property, plant and equipment | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure of detailed information about property, plant and equipment [abstract] | |
Property, plant and equipment | 8 Property, plant and equipment Computer equipment Leasehold and Furniture Laboratory Right-of- improve- software and fixtures equipment use assets ments Total $ $ $ $ $ $ Year ended December 31, 2019 Opening net book value 96 163 558 1,323 743 2,883 Additions 190 18 253 – 15 476 Disposals Cost (9 ) – (11 ) – – (20 ) Accumulated depreciation 9 – 10 – – 19 Depreciation for the year (119 ) (34 ) (144 ) (150 ) (81 ) (528 ) Closing net book value 167 147 666 1,173 677 2,830 As at December 31, 2019 Cost 456 212 1,588 1,417 815 4,488 Accumulated depreciation (289 ) (65 ) (922 ) (244 ) (138 ) (1,658 ) Net book value 167 147 666 1,173 677 2,830 Year ended December 31, 2020 Opening net book value 167 147 666 1,173 677 2,830 Additions 52 26 318 176 25 597 Disposals Cost (14 ) – (189 ) – – (203 ) Accumulated depreciation 12 – 118 – – 130 Depreciation for the year (96 ) (33 ) (139 ) (166 ) (81 ) (515 ) Closing net book value 121 140 774 1,183 621 2,839 As at December 31, 2020 Cost 495 238 1,717 1,593 839 4,882 Accumulated depreciation (374 ) (98 ) (943 ) (410 ) (218 ) (2,043 ) Net book value 121 140 774 1,183 621 2,839 |
Long-term debt
Long-term debt | 12 Months Ended |
Dec. 31, 2020 | |
Borrowings [abstract] | |
Long-term debt | 9 Long-term debt 2020 2019 $ $ ACOA Atlantic Innovation Fund (“AIF”), interest-free loan 1 1,523 1,404 ACOA AIF, interest-free loan 1 1,219 1,237 ACOA Business Development Program, interest-free loan with a maximum contribution of $395, repayable in monthly payments commencing October 2015 of $3 until October 2017 and $6 until June 2023. As at December 31, 2020, the amount drawn down on the loan, net of repayments, is $167 (2019 - $184). 159 180 ACOA AIF, interest-free loan 1 1,097 1,481 TNC 120-140 Eileen Stubbs Ltd. (the Landlord) loan, with an original balance of $300, bearing interest at 8% per annum, is repayable in monthly payments of $4 beginning February 1, 2019 until May 1, 2028. As at December 31, 2020, the balance on the loan is $255 (2019 - $279). 255 279 Province of Nova Scotia (the “Province”), secured loan with a maximum contribution of $5,000, bearing interest at a rate equal to the Province’s cost of funds plus 1%, compounded semi-annually and payable monthly. The loan is repayable in monthly payments beginning January 1, 2021 of $83 plus interest until March 2026. The Corporation and its subsidiary have provided a general security agreement granting a first security interest in favour of the Province of Nova Scotia in and to all the assets of the Corporation and its subsidiary, including the intellectual property. As at December 31, 2020, the amount drawn down on the loan is $5,000 (2019 - $5,000). 4,169 3,880 ACOA Regional Economic Growth through Innovation 1 406 - 8,828 8,461 Less: Current portion 1,094 88 7,734 8,373 1 (13) IMV Inc. Notes to the Consolidated Financial Statements For the years ended December 31, 2020 and 2019 (Expressed in thousands of Canadian dollars except for share and per share amounts) 9 Long-term debt Total contributions received, less amounts that have been repaid as at December 31, 2020, is $16,005 (2019 -$15,147). Certain ACOA loans and the Province loan require approval by ACOA or the Minister for the Province before the Corporation can pay management fees, bonuses, dividends or other distributions, or before there is any change of ownership of the Corporation. The Province loan requires the Corporation to obtain the written consent of the Province prior to the sale, disposal or abandonment of possession of the intellectual property of the Corporation or its subsidiary. If during the term of the Province loan, the head office, research and development facilities, or production facilities of the Corporation are moved from the Province, the Corporation is required to repay 40% of the outstanding principal of the loan. In June 2019, the Corporation amended its loan agreement with the Province. Previously, the maturity date of the loan was August 9, 2020. The Corporation shall now start repaying the balance of the principal amount on the first day of January 2021, by making 60 monthly principal payments of $83 plus interest from January 2021 to December 2025. The annual interest rate remains at the Province’s cost of funds plus 1%. In accounting for this change, the Corporation determined, based on industry risk, its own credit risk and the interest rate environment, that the effective interest rate of the loan of 11% remains appropriate. The difference between the carrying value of the loan before the amendment and after the amendment of $840 was recorded in the statements of loss and comprehensive loss as government assistance. The Province loan requires certain early repayments if the Corporation’s subsidiary, or the Corporation on a consolidated basis, has cash flow from operations in excess of $1,500. The Province loan also requires repayment of the loan under certain circumstances, such as changes of control, sale or liquidation of the Corporation or the sale of substantially all of the assets of the Corporation. The minimum annual principal repayments of long-term debt over the next five years, excluding the repayments of the Conditional ACOA loans for 2021 and beyond which are not determinable at this time, are as follows: $ Year ending December 31, 2021 1,094 2022 850 2023 743 2024 642 2025 581 (14) IMV Inc. Notes to the Consolidated Financial Statements For the years ended December 31, 2020 and 2019 (Expressed in thousands of Canadian dollars except for share and per share amounts) 9 Long-term debt 2020 2019 $ $ Balance – Beginning of year 8,461 8,150 Borrowings 1,000 – Accreted interest and valuation adjustments 36 1,239 Revaluation of long-term debt (628 ) (840 ) Repayment of debt (41 ) (88 ) Balance – End of year 8,828 8,461 Less: Current portion 1,094 88 Non-current portion 7,734 8,373 The Corporation is in compliance with its debt covenants. |
Accounts payable, accrued and o
Accounts payable, accrued and other liabilities | 12 Months Ended |
Dec. 31, 2020 | |
Trade and other current payables [abstract] | |
Accounts payable, accrued and other liabilities | 10 Accounts payable, accrued and other liabilities 2020 2019 $ $ Trade payables 4,757 3,665 Accrued and other liabilities 4,404 2,477 Payroll taxes 21 15 Amounts due to Directors 58 60 9,240 6,217 |
Share capital
Share capital | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure of classes of share capital [abstract] | |
Share capital | 11 Share capital Authorized Unlimited number of common shares and preferred shares, issuable in series, all without par value. Common shares Amount # $ Issued and outstanding Balance – December 31, 2018 45,106,401 90,152 Issued for cash, net of issuance costs 5,404,855 26,957 Stock options exercised 105,196 353 Warrants exercised 14,423 82 Balance – December 31, 2019 50,630,875 117,544 Issued for cash, net of issuance costs 15,611,778 59,940 Stock options exercised 162,086 658 DSUs redeemed 76,920 184 Warrants exercised 611,888 3,029 Balance – December 31, 2020 67,093,547 181,355 (15) IMV Inc. Notes to the Consolidated Financial Statements For the years ended December 31, 2020 and 2019 (Expressed in thousands of Canadian dollars except for share and per share amounts) 11 Share capital As at December 31, 2020, a total of 4,523,379 shares (December 31, 2019 – 2,069,142) are reserved to meet outstanding stock options, warrants and DSUs. On October 16, 2020, the Corporation entered into an Equity Distribution Agreement (“October 2020 ATM”) with Piper Sandler & Co. (“Piper Sandler”) authorizing the Corporation to offer and sell common shares from time-to-time up to an aggregate offering amount of US$50,000 through Piper Sandler, as agent. The total expenses associated with the ATM Distribution, excluding compensation and reimbursements payable to Piper Sandler under the terms of the Equity Distribution Agreement, were approximately $255. There were no shares sold in 2020 under the October 2020 ATM. Subsequent to December 31, 2020, 533,994 common shares were sold for gross proceeds of US$2,304. On May 7, 2020, the Corporation completed a private placement of 8,770,005 units at a price of $2.86 per unit, for aggregated proceeds of $25,082. Each unit consisted of one common share and 0.35 of one common share purchase warrant, with each whole warrant entitling the holder to acquire one common share of the Corporation at an exercise price of $3.72 for a period of 24 months expiring on May 7, 2022. The value allocated to the common shares issued was $21,307 and the value allocated to the warrants was $3,775. Total costs associated with the offering were $152, including cash costs for professional and regulatory fees. On March 17, 2020, the Corporation entered into an Equity Distribution Agreement (“March 2020 ATM”) with Piper Sandler authorizing the Corporation to offer and sell common shares from time-to-time up to an aggregate offering amount of US$30,000 through Piper Sandler, as agent. The March 2020 ATM was terminated on June 30, 2020 and 2,070,883 common shares were sold under this agreement for total gross proceeds of $7,639. To maintain the remainder of IMV’s March 2020 ATM facility under its new Canadian base shelf prospectus, IMV entered a second ATM Distribution dated June 30, 2020 (“June 2020 ATM”), with Piper Sandler, to offer and sell common shares from time-to-time up to an aggregate offering amount of US$24.5 million through Piper Sandler, as agent. An additional 4,770,890 common shares were sold for gross proceeds of $33,185, concluding the proceeds raised under the June 2020 ATM to the maximum offering amount of US$24.5 million as at December 31, 2020. As at December 31, 2020, a total of 6,841,773 shares have been sold under the two ATM Distribution agreements for total gross proceeds of $40,824. The total expenses associated with both ATM Distributions including commissions, were approximately $1,784. On March 6, 2019, the Corporation completed a public offering, issuing an aggregate of 4,900,000 common shares at a price of $5.45 per common share, raising gross proceeds of $26,705. On March 11, 2019, the underwriters partially exercised their option to purchase common shares, resulting in the issuance of 504,855 common shares of the Corporation at a price of $5.45 per share for additional gross proceeds of approximately $2,751. As a result of the exercise of this option, the Corporation has raised total gross proceeds of approximately $29,456 before deducting the underwriting commissions and offering expenses of $2,499. |
Contributed surplus
Contributed surplus | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure of terms and conditions of share-based payment arrangement [abstract] | |
Contributed surplus | 12 Contributed surplus Amount $ Contributed surplus Balance – December 31, 2018 6,504 Share-based compensation Stock options vested 1,138 DSUs vested 290 Reclassification of DSUs 955 Stock options exercised (258 ) Warrants expired 62 Balance – December 31, 2019 8,691 Share-based compensation Stock options vested 1,005 DSUs vested 537 Stock options exercised (404 ) DSUs Redeemed (189 ) Warrants expired 332 Balance – December 31, 2020 9,972 Deferred share units The maximum number of common shares which the Corporation is entitled to issue from Treasury in connection with the redemption of DSUs granted under the DSU Plan is 968,750 common shares. DSU activity for the years ended December 31, 2020 and December 31, 2019 are as follows: 2020 2019 # # Opening balance 360,965 223,604 Granted 147,671 137,361 Redeemed (79,106 ) – Closing balance 429,530 360,965 The compensation expense (recovery) at December 31, 2020 was $537 (2019 – ($191) recovery), recognized over the vesting period. Vested DSUs cannot be redeemed until the holder is no longer a member of the Board. On August 8, 2019 (“the reclassification date”), the Corporation resolved to settle all future DSU redemptions in shares, instead of cash. All outstanding DSUs are accordingly now considered equity-settled instruments. As a result of this change, the fair value of the DSUs at the reclassification date were reclassified from liabilities to contributed surplus. (17) IMV Inc. Notes to the Consolidated Financial Statements For the years ended December 31, 2020 and 2019 (Expressed in thousands of Canadian dollars except for share and per share amounts) 12 Contributed surplus Stock options The Board of Directors of the Corporation has established a stock option plan (the "Plan") under which options to acquire common shares of the Corporation are granted to directors, employees and other advisors of the Corporation. The maximum number of common shares issuable under the Plan shall not exceed 4,600,000, inclusive of all shares presently reserved for issuance pursuant to previously granted stock options. If any option expires or otherwise terminates for any reason without having been exercised in full, or if any option is exercised in whole or in part, the number of shares in respect of which option expired, terminated or was exercised shall again be available for the purposes of the Plan. Stock options are granted with an exercise price determined by the Board of Directors, which is not less than the market price of the shares on the day preceding the award. The term of the option is determined by the Board of Directors, not to exceed ten years from the date of grant, however, the majority of options expire in five years. The vesting of the options is determined by the Board and, beginning January 1, 2018, is typically 33 1/3% every year after the date of grant. In the event that the option holder should die while he or she is still a director, employee or other advisor of the Corporation, the expiry date shall be 12 months from the date of death of the option holder, not to exceed the original expiry date of the option. In the event that the option holder ceases to be a director, employee or other advisor of the Corporation other than by reason of death or termination, the expiry date of the option shall be the 90 th The fair values of stock options are estimated using the Black-Scholes option pricing model. During the year ended December 31, 2020, 395,850 stock options (2019 – 343,100) with a weighted average exercise price of $5.50 (2019 – $6.39) and a term of five years (2019 – five years), were granted to employees and consultants. The expected volatility of these stock options was determined using historical volatility rates and the expected life was determined using the weighted average life of past options issued. The value of these stock options has been estimated at $1,168 (2019 - $1,112), which is a weighted average grant date value per option of $2.95 (2019 -$3.24), using the Black-Scholes valuation model and the following weighted average assumptions: 2020 2019 Risk-free interest rate 1.00% 1.81% Exercise price $5.50 $6.39 Market price $5.50 $6.39 Expected volatility 71% 64% Expected dividend yield – – Expected life (years) 4.2 4.2 Forfeiture rate 4% 5% (18) IMV Inc. Notes to the Consolidated Financial Statements For the years ended December 31, 2020 and 2019 (Expressed in thousands of Canadian dollars except for share and per share amounts) 12 Contributed surplus Stock options Option activity for the years ended December 31, 2020 and 2019 was as follows: 2020 2019 Weighted Weighted average average Number exercise price Number exercise price # $ # $ Outstanding - Beginning of year 1,573,411 4.63 1,474,477 4.12 Granted 395,850 5.50 343,100 6.39 Exercised (203,595 ) 1 2.42 (139,877 ) 1 2.32 Forfeited (47,638 ) 6.69 (91,789 ) 6.81 Cancelled (81,792 ) 6.92 – – Expired – – (12,500 ) 2.37 Outstanding - End of year 1,636,236 4.93 1,573,411 4.63 1 The number and weighted average exercise price of options exercisable as at December 31, 2020 is 938,587 and $4.13, respectively (2019 – 911,732 and $3.29). At December 31, 2020, the following options were outstanding: Options outstanding Options exercisable Weighted Weighted Weighted average Weighted average Exercise average remaining average remaining price exercise contractual life exercise contractual life range Number price (years) Number price (years) $ # $ # $ 1.98 – 2.38 284,188 2.20 0.32 284,188 2.20 0.32 2.39 – 3.89 320,593 2.80 1.94 287,259 2.69 1.72 3.90 – 6.19 382,750 5.48 4.34 – – – 6.20 – 6.72 317,188 6.40 2.22 211,460 6.40 2.22 6.73 – 7.39 331,517 7.28 2.71 155,680 7.23 2.57 1,636,236 4.93 2.43 938,587 4.13 1.55 (19) |
Warrants
Warrants | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure of warrants [Abstract] | |
Warrants | 13 Warrants Warrant activity for the years ended December 31, 2020 and 2019, was as follows: 2020 2019 Weighted Weighted average average exercise exercise Number price Amount Number price Amount # $ $ # $ $ Opening balance 134,766 6.53 332 192,458 5.84 415 Granted 3,069,501 3.72 3,775 – – – Exercised (611,888 ) 3.72 (753 ) (14,423 ) 4.22 (21 ) Expired (134,766 ) 6.53 (332 ) (43,269 ) 4.22 (62 ) Closing balance 2,457,613 3.72 3,022 134,766 6.53 332 The fair values of warrants are estimated using the Black-Scholes option pricing model. The weighted average assumptions used in the Black-Scholes valuation model for the periods presented were as follows: 2020 Risk-free interest rate 0.27 % Market price $3.12 Expected volatility 83 % Expected dividend yield – Expected life (years) 2 |
Deferred income taxes
Deferred income taxes | 12 Months Ended |
Dec. 31, 2020 | |
Major components of tax expense (income) [abstract] | |
Deferred income taxes | 14 Deferred income taxes a) Reconciliation of total tax recovery The effective rate on the Corporation’s loss before income tax differs from the expected amount that would arise using the statutory income tax rates. A reconciliation of the difference is as follows: 2020 2019 $ $ Loss before income taxes (34,855 ) (27,365 ) Income tax rate 28.5 % 30.0 % (9,934 ) (8,210 ) Effect on income taxes of: Non-deductible share-based compensation 439 284 Unrecognized deductible temporary difference and carry forward amounts and experimental development expenditures 9,458 7,892 Other non-deductible items 37 34 Income tax recovery – – b) Deferred income tax The significant components of the Corporation’s deferred income tax are as follows: 2020 2019 $ $ Deferred income tax liabilities: Intangibles – – Deferred income tax assets: Non-capital losses – – Net deferred income tax liability – – The following reflects the balance of temporary differences for which no deferred income tax asset (liability) has been recognized: 2020 2019 $ $ Non-capital losses 104,980 77,389 SR&ED expenditures 37,659 29,558 Non-refundable investment tax credits 6,459 5,536 Deductible share issuance costs 4,028 3,452 Long-term debt 8,574 7,925 Lease obligation 347 362 Property and equipment (227 ) (400 ) (21) IMV Inc. Notes to the Consolidated Financial Statements For the years ended December 31, 2020 and 2019 (Expressed in thousands of Canadian dollars except for share and per share amounts) 14 Deferred income taxes c) Non-capital losses As at December 31, 2020, the Corporation had approximately $104,980 in losses available to reduce future taxable income. The benefit of these losses has not been recorded in the accounts as realization is not considered probable. These losses may be claimed no later than: $ For the year ending December 31, 2025 1,000 2026 1,100 2027 1,470 2028 1,770 2029 660 2030 2,640 2031 5,090 2032 4,110 2033 4,400 2034 3,680 2035 5,610 2036 5,130 2037 9,510 2038 13,440 2039 17,530 2040 27,840 104,980 d) Scientific research and experimental development expenditures The Corporation has approximately $37,659 of unclaimed SR&ED expenditures, which may be carried forward indefinitely and used to reduce taxable income in future years. The potential income tax benefits associated with the unclaimed SR&ED expenditures have not been recognized in the accounts as realization is not considered probable. e) Non-refundable investment tax credits The Corporation also has approximately $6,459 in non-refundable federal investment tax credits which may be carried forward to reduce taxes payable. These tax credits will be fully expired by 2040. The benefit of these tax credits has not been recorded in the accounts as realization is not considered probable. |
Capital management
Capital management | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure of capital management [Abstract] | |
Capital management | 15 Capital management The Corporation views capital as the sum of its cash and cash equivalents, long-term debt and equity. The Corporations’ objectives when managing capital is to safeguard its ability to continue as a going concern in order to provide an adequate return to shareholders and maintain a sufficient level of funds to finance its research and development activities, general and administrative expenses, working capital and overall capital expenditures, including those associated with patents and trademarks. To maintain or adjust the capital structure, the (22) IMV Inc. Notes to the Consolidated Financial Statements For the years ended December 31, 2020 and 2019 (Expressed in thousands of Canadian dollars except for share and per share amounts) 15 Capital management Corporation may attempt to issue new shares, issue new debt, acquire or dispose of assets, all of which are subject to market conditions and the terms of the underlying third party agreements. The Corporation is not subject to any regulatory capital requirements imposed. 2020 2019 $ $ Total long-term debt 8,828 8,461 Less: Cash and cash equivalents (46,362 ) (14,066 ) Net debt (37,534 ) (5,605 ) Equity 39,375 6,448 Total capital 1,841 843 The Corporation is in compliance with its debt covenants. |
Financial instruments
Financial instruments | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure of detailed information about financial instruments [abstract] | |
Financial instruments | 16 Financial instruments Fair value of financial instruments Financial instruments are defined as a contractual right or obligation to receive or deliver cash on another financial asset. The following table sets out the approximate fair values of financial instruments as at the consolidated statements of financial position date with relevant comparatives: 2020 2019 Carrying Carrying value Fair value value Fair value $ $ $ $ Cash and cash equivalents 46,362 46,362 14,066 14,066 Amounts receivable 208 208 439 439 Accounts payable, accrued and other liabilities 8,734 8,734 6,202 6,202 Long-term debt 8,828 8,828 8,461 8,461 Assets and liabilities, such as commodity taxes, that are not contractual and that arise as a result of statutory requirements imposed by governments, do not meet the definition of financial assets or financial liabilities and are, therefore, excluded from amounts receivable and accounts payable. Fair value of items, which are short-term in nature, have been deemed to approximate their carrying value. The above noted fair values, presented for information only, reflect conditions that existed only as at December 31, 2020, and do not necessarily reflect future value or amounts which the Corporation might receive if it were to sell some or all of its assets to a willing buyer in a free and open market. (23) IMV Inc. Notes to the Consolidated Financial Statements For the years ended December 31, 2020 and 2019 (Expressed in thousands of Canadian dollars except for share and per share amounts) 16 Financial instruments The fair value of long-term debt is estimated based on the expected interest rates for similar borrowings by the Corporation at the consolidated statements of financial position dates. At December 31, 2020, the fair value is estimated to be equal to the carrying amount. Risk management The Corporation, through its financial assets and liabilities, has exposure to the following risks from its use of financial instruments: interest rate risk, credit risk, liquidity risk and currency risk. Management is responsible for setting acceptable levels of risk and reviewing risk management activities as necessary. a) Interest rate risk The Corporation has limited exposure to interest rate risk on its lending and borrowing activities. The Corporation has a significant loan in which the interest rate is dependent on the cost of funds from the lender plus 1%. This interest rate is fixed at the time that each loan disbursement is made, resulting in limited variability to the interest rate. The total amount drawn down on the loan as at December 31, 2020 is $5,000 (2019 - $5,000), the Corporation is required to make interest payments in fiscal 2021 of $135 and principal repayments of $1,000 on this loan. The Corporation has an interest-free loan that is repayable over 84 months, resulting in required principal debt payments in fiscal 2020 of $67, and also has a loan with a fixed interest rate of 8% per annum resulting in interest payments in 2020 of $19. The remaining outstanding debt as at December 31, 2020 is interest-free, only becoming repayable when revenues are earned. The Corporation is required to make principal debt payments in fiscal 2020 of $5. b) Credit risk Credit risk arises from cash and cash equivalents and amounts receivable. The Corporation invests excess cash in high-interest savings accounts or in highly liquid temporary investments of Schedule 1 Canadian Banks. The credit risk of cash and cash equivalents is limited because the counterparties are banks with high credit ratings assigned by international credit rating agencies. The total of amounts receivable disclosed in the consolidated statements of financial position as at December 31, 2020 of $2,012 (2019 - $845) is comprised mainly of current period advances due to the Corporation for government assistance programs and sales taxes recoverable. If required, the balance is shown net of allowances for bad debt, estimated by management based on prior experience and their assessment of the current economic environment. Historically, there have been no collection issues and the Corporation does not believe it is subject to any significant concentration of credit risk. c) Liquidity risk Liquidity risk represents the possibility that the Corporation may not be able to gather sufficient cash resources when required and under reasonable conditions to meet its financial obligations. (24) IMV Inc. Notes to the Consolidated Financial Statements For the years ended December 31, 2020 and 2019 (Expressed in thousands of Canadian dollars except for share and per share amounts) 16 Financial instruments Risk management Since the Corporation’s inception, operations have been financed through the sale of shares, issuance of debt, revenue and cost-recoveries from license agreements, interest income on funds available for investment, government assistance and income tax credits. The Corporation has incurred significant operating losses and negative cash flows from operations since inception and has an accumulated deficit of $154,974 as at December 31, 2020. While the Corporation has $46,362 in cash and cash equivalents at December 31, 2020, it continues to have an ongoing need for substantial capital resources to research and develop, commercialize and manufacture its products and technologies. The Corporation is currently not yet receiving a significant ongoing revenue stream from its license agreements, nor can it be certain that it will receive significant revenue from these agreements before additional cash is required. For the purposes of assessing the Corporation as a going concern, although it is difficult to predict funding requirements, based on the current operating plan, it is anticipated that existing cash and cash equivalents will fund operations and capital expenditure requirements in excess of 12 months following the date of issuance of IMV’s 2020 audited annual consolidated financial statements. These estimates are based on assumptions and plans which may change and which could impact the magnitude and/or timing of operating expenses, capital expenditures and the Corporation’s cash requirements. The following table outlines the contractual maturities of the Corporation’s liabilities, including most likely timing of repayments of long-term debt that is repayable based on a percentage of revenues. The long-term debt is comprised of the contributions received described in note 11, less amounts that have been repaid as at December 31, 2020: Total Year 1 Years 2 to 3 Years 4 to 5 After 5 years $ $ $ $ $ Accounts payable and other liabilities 9,240 9,240 – – – Short-term and low value leases 39 18 21 – – Lease obligation 1,989 282 578 542 587 Long-term debt 16,503 1,253 2,372 2,153 10,725 27,771 10,793 2,971 2,695 11,312 The above amounts include interest payments, where applicable. d) Currency risk The Corporation incurs some revenue and expenses and holds on some cash denomintaed in U.S. dollars and, as such, is subject to fluctuations as a result of foreign exchange rate variation. The Corporation does not have in place any tools to manage its foreign exchange risk. Foreign exchange loss of $1,259 for the year ended December 31, 2020 (2019, foreign exchange gain - $84) is included in general and administrative expenses. If the foreign exchange had been 1% higher/lower, with all other variables held constant, it would have had an immaterial impact on the foreign exchange gain/loss. |
Commitments
Commitments | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure of contingent liabilities [abstract] | |
Commitments | 17 Commitments On July 12, 2010, the Corporation entered into a License Agreement with Merck KGaA to in-license EMD 640744, an investigational therapeutic survivin-based cancer antigen designed to target multiple solid tumors and hematological malignancies. Should the Corporation’s research using these antigens continue and prove successful through clinical trials and on to commercialization, the Corporation would be required to pay certain future milestones and royalty payments along the way. The likelihood and timing of these payments is not known at this time. |
Expenses by nature
Expenses by nature | 12 Months Ended |
Dec. 31, 2020 | |
Expenses | |
Expenses by nature | 18 Expenses by nature 2020 2019 $ $ Salaries, wages and benefits 9,371 7,831 Research and development expenditures, including clinical costs 19,989 13,594 Professional and consulting fees 2,488 1,779 Travel 66 680 Office, rent and telecommunications 760 684 Insurance 3,551 800 Marketing, communications and investor relations 1,579 1,675 Depreciation 515 527 Stock-based compensation (non-cash) 1,005 1,138 DSU compensation (non-cash) 537 (191 ) Other 690 693 Foreign exchange loss (gain) 1,259 (84 ) Accreted interest and valuation adjustments 36 1,239 Research and development tax credits (1,699 ) (1,571 ) Government assistance (4,991 ) (861 ) 35,156 27,933 |
Compensation of key management
Compensation of key management | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure of amounts incurred by entity for provision of key management personnel services provided by separate management entities [abstract] | |
Compensation of key management | 19 Compensation of key management Key management includes the Corporation’s Directors, Chief Executive Officer, Chief Financial Officer, and Chief Medical Officer. Compensation awarded to key management is summarized as follows: 2020 2019 $ $ Salaries and other benefits 2,306 1,970 Stock-based compensation (non-cash) 1,288 1,290 3,594 3,260 |
Significant accounting polici_2
Significant accounting policies, judgments and estimation uncertainty (Policies) | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure of significant accounting policies, judgments and estimation uncertainty [Abstract] | |
Basis of measurement | Basis of measurement The consolidated financial statements have been prepared under the historical cost convention. |
Consolidation | Consolidation The financial statements of the Corporation consolidate the accounts of IMV Inc. and its subsidiary. All intercompany transactions, balances and unrealized gains and losses from intercompany transactions are eliminated on consolidation. There are no non-controlling interests, therefore, all loss and comprehensive loss is attributable to the shareholders of the Corporation. |
Foreign currency translation | Foreign currency translation i) Functional and presentation currency Items included in the consolidated financial statements of the Corporation are measured using the currency of the primary economic environment in which the entity operates (the “functional currency”). The consolidated financial statements are presented in Canadian dollars, which is the Corporation’s functional currency. ii) Transactions and balances Foreign currency translation of monetary assets and liabilities, denominated in currencies other than the Corporation’s functional currency, are converted at the rate of exchange in effect at the consolidated statements of financial position date. Revenue and expense items are translated at the rate of exchange in effect at the transaction date. Translation gains or losses are included in determining income or loss for the year. Foreign exchange loss of $1,259 for the year ended December 31, 2020 (2019 - $84 gain) is included in general and administrative expenses. |
Cash and cash equivalents | Cash and cash equivalents Cash and cash equivalents include cash on hand, balances with banks, and highly liquid temporary investments that are readily convertible to known amounts of cash. |
Financial instruments | Financial instruments Financial assets and liabilities are recognized when the Corporation becomes a party to the contractual provisions of the instrument. Financial assets are derecognized when the rights to receive cash flows from the assets have expired or have been transferred and the Corporation has transferred substantially all risks and rewards of ownership. Financial assets and liabilities are offset and the net amount is reported in the consolidated statements of financial position when there is a legally enforceable right to offset the recognized amounts and there is an intention to settle on a net basis, or realize the asset and settle the liability simultaneously. The Corporation recognizes financial instruments based on their classification. Depending on the financial instruments’ classification, changes in subsequent measurements are recognized in net loss and comprehensive loss. Financial instruments do not include amounts due to or from government entities. The Corporation has implemented the following classifications: • Cash and cash equivalents and amounts receivable are classified as amortized cost (previously loans and receivables). After their initial fair value measurement, they are measured at amortized cost using the effective interest method; and • Accounts payable, accrued and other liabilities, amounts due to directors and long-term debt are classified as other amortized cost (previously financial liabilities). After their initial fair value measurement, they are measured at amortized cost using the effective interest method. |
Impairment of financial assets | Impairment of financial assets The Corporation applies the simplified method of the expected credit loss model required under IFRS 9, Financial Instruments. Under this method, the Corporation estimates a lifetime expected loss allowance for all receivables. Receivables are written off when there is no reasonable expectation of recovery. If there is objective evidence that an impairment loss has incurred, the amount of the loss is measured as the difference between the asset’s carrying amount and the present value of estimated future cash flows. The present value of the estimated future cash flows is discounted at the financial asset’s original effective interest rate. |
Property and equipment | Property and equipment Property and equipment are stated at cost less accumulated depreciation and accumulated impairment losses. Cost includes expenditures that are directly attributable to the acquisition of the asset. 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 Corporation and the cost can be measured reliably. The carrying amount of a replaced asset is derecognized when replaced. Repairs and maintenance costs are charged to the consolidated statements of loss and comprehensive loss during the period in which they are incurred. (3) IMV Inc. Notes to the Consolidated Financial Statements For the years ended December 31, 2020 and 2019 (Expressed in thousands of Canadian dollars except for share and per share amounts) 4 Significant accounting policies, judgments and estimation uncertainty Property and equipment Depreciation of property and equipment is calculated using the declining-balance method, with the exception of leasehold improvements, right-of-use assets and leased premises, at the following annual rates: Computer equipment 30% Computer software 100% Furniture and fixtures 20% Laboratory equipment 20% Leasehold improvements and right-of-use assets straight-line Residual values, method of depreciation and useful lives of the assets are reviewed annually and adjusted if appropriate. Gains and losses on disposals of property and equipment are determined by comparing the proceeds with the carrying amount of the asset and are included as part of general and administrative expenses in the consolidated statements of loss and comprehensive loss. Property and equipment and intangible assets are tested for impairment when events or changes in circumstances indicate that the carrying amount may not be recoverable. For the purpose of measuring recoverable amounts, assets are grouped at the lowest levels for which there are separately identifiable cash flows (cash-generating units or “CGU”s). The recoverable amount is the higher of an asset’s fair value less the costs to sell, and value in use (being the present value of the expected future cash flows of the relevant asset or CGU). An impairment loss is recognized for the amount by which the asset’s carrying amount exceeds its recoverable amount. The Corporation evaluates impairment losses for potential reversals when events or circumstances warrant such consideration. |
Leases | Leases Under IFRS 16, Leases, the Corporation assesses whether a contract is or contains a lease based on the definition of a lease. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. To assess whether a contract conveys the right to control the use of an identified asset, the Corporation assesses whether: • the contract involves the use of an identified asset, specified either explicitly or implicitly, that is physically distinct, and usage represents substantially all of the capacity of the asset; • the Corporation has the right to obtain substantially all of the economic benefits from use of the asset; and • the Corporation has the right to direct use of the asset, which is evidenced by decision-making rights to direct how and for what purpose the asset is used. The Corporation recognizes an asset and a lease liability at the lease commencement date. (4) IMV Inc. Notes to the Consolidated Financial Statements For the years ended December 31, 2020 and 2019 (Expressed in thousands of Canadian dollars except for share and per share amounts) 4 Significant accounting policies, judgments and estimation uncertainty Leases The asset is initially measured at cost, which comprises the initial amount of the lease liability adjusted for any lease payments made at or before the commencement date, plus any initial direct costs incurred, less any incentives received. The asset is subsequently depreciated using the straight-line method from the commencement date to the earlier of the end of the useful life of the asset or the end of the lease term. The estimated useful lives of leased assets are determined on the same basis as those of property and equipment. The carrying amount of the leased asset is periodically reduced by impairment losses, if any, and adjusted for certain remeasurements of the lease liability, if any. The lease liability is initially measured at the present value of future lease payments, discounted using the interest rate implicit in the lease, or, if that rate cannot be readily determined, the Corporation’s incremental borrowing rate. Generally, the Corporation uses its incremental borrowing rate as the discount rate. The lease liability is subsequently measured at amortized cost using the effective interest method. It is remeasured if the Corporation changes its assessment of whether it will exercise a purchase, extension, or termination option. If the lease liability is remeasured in this way, a corresponding adjustment is made to the carrying amount of the leased asset, or is recorded in the consolidated statements of loss and comprehensive loss if the carrying value of the leased asset is zero. The Corporation has elected not to recognize assets and lease liabilities for short-term leases with a term of 12 months or less, and leases of low value assets. The lease payments associated with these leases are recognized as an expense in the consolidated statements of loss and comprehensive loss over the lease term. Low value assets consist primarily of computers and information technology equipment. |
Income tax | Income tax Income tax is comprised of current and deferred income tax. Income tax is recognized in the consolidated statements of loss and comprehensive loss except to the extent that it relates to items recognized directly in equity, in which case the income tax is also recognized directly in equity. Current tax is the expected tax payable on the taxable income for the year, using tax rates enacted or substantively enacted, at the end of the reporting period, and any adjustment to tax payable in respect of previous years. In general, deferred income tax is recognized in respect of temporary differences including non-refundable investment tax credits, arising between the tax bases of assets and liabilities and their carrying amounts in the consolidated financial statements. Deferred income tax is determined on a non-discounted basis using tax rates and laws that have been enacted or substantively enacted at the consolidated statements of financial position date and are expected to apply when the deferred income tax asset or liability is settled. Deferred income tax assets are recognized to the extent that it is probable that the assets can be recovered. |
Research and development | Research and development Deferred income tax is provided on temporary differences arising on investments in subsidiaries and associates, except in the case of subsidiaries, where the timing of the reversal of the temporary difference is controlled by the Corporation and it is probable that the temporary difference will not reverse in the foreseeable future. Deferred income tax assets and liabilities are presented as non-current. All research costs are expensed in the period incurred. Development costs are expensed in the period incurred, unless they meet the criteria for capitalization, in which case, they are capitalized and then amortized over the useful life. Development costs are written off when there is no longer an expectation of future benefits. |
Revenue recognition | Revenue recognition Revenue is recognized as the Corporation satisfies its performance obligations under the terms of the contract. Performance obligations are considered to be satisfied when the customer obtains control of the related asset. Current and expected future revenue streams include: (i) milestone payments generated upon entering into potential contractual partnerships and achieving development and sales milestones; (ii) future royalties generated from the eventual commercialization of the Corporation’s products; and (iii) amounts generated for providing formulation and research support services related to existing licensing and research agreements with partners. Revenue resulting from formulation services is recognized in the accounting period in which the formulation is delivered to the customer. Typically, the customer does not have control of the asset while services are being performed and, therefore, revenues are recognized at the time the Corporation has completed its obligation and the customer obtains control of the asset. Revenue resulting from research support services is recognized over time as the services are performed, as the customer benefits simultaneously from the service, and as the Corporation satisfies its performance obligation. The Corporation expects to generate upfront payments, milestone and royalty revenues from future licenses for the Corporation’s products. Upfront payments and milestones will be recognized as revenue when or as the underlying obligations are achieved and are not conditional on any further performance, which could be at a point in time or over time depending on the contractual terms. Royalty revenue will be recognized in the period in which the Corporation earns the royalty. The Corporation does not generate licensing or royalty revenues at this time. |
Share capital | Share capital Common shares are classified as equity. Incremental costs directly attributable to the issuance of shares are recognized as a deduction from share capital. |
Loss per share | Loss per share Basic loss per share (“LPS”) is calculated by dividing the net loss for the year attributable to equity owners of the Corporation by the weighted average number of common shares outstanding during the year. Diluted LPS is calculated by adjusting the weighted average number of common shares outstanding for dilutive instruments. The number of shares included with respect to options, warrants and similar instruments is computed using the treasury stock method. Diluted LPS is equal to the LPS as the Corporation is in a loss position and all securities, comprised of options and warrants, would be anti-dilutive. |
Stock-based compensation plan | Stock-based compensation plan The Corporation grants stock options to certain employees and non-employees. Beginning January 1, 2018, stock options vest over three years (33 ⅓% per year) and expire after five years. Each tranche in an award is considered a separate award with its own vesting period and grant date fair value. Fair value of each tranche is measured at the date of grant using the Black-Scholes option pricing model. Compensation expense is recognized over the tranche's vesting period by increasing contributed surplus based on the number of awards expected to vest. The number of awards expected to vest is reviewed at least annually, with any impact being recognized immediately. A holder of an option may, rather than exercise such option, elect a cashless exercise of such option payable in common shares equaling the amount by which the value of an underlying share at that time exceeds the exercise price of such option or warrant to acquire such share. |
Deferred share unit plan ("DSU Plan) | Deferred share unit plan (“DSU Plan) The Corporation grants deferred share units (“DSUs”) to members of its Board of Directors (“Board Members”), who are not employees or officers of the Corporation. DSUs cannot be redeemed until the holder is no longer a director of the Corporation and are considered equity-settled instruments. In accordance with the DSU Plan, DSUs for ongoing services are granted quarterly and vest immediately. The Board Members can also grant DSUs at its discretion, which may vest over time. The value attributable to DSUs is based on the market value at the time of grant and a compensation expense is recognized in general and administrative expenses on the consolidated statements of loss and comprehensive loss in accordance with the vesting terms. At the time of redemption, each DSU may be exchanged for one common share of IMV Inc. |
Government assistance | Government assistance Government assistance consists of non-repayable government grants, from a number of government agencies and the difference between the fair value and the book value of repayable low-interest government loans, recorded initially at fair value. Government assistance is recorded in the period earned using the cost reduction method and is included in government assistance on the consolidated statements of loss and comprehensive loss. As at December 31, 2020, $1,322 (2019 - $nil) of government assistance is included in amounts receivable. |
Research and development tax credits | Research and development tax credits Refundable investment tax credits relating to scientific research and experimental development expenditures (“SR&ED”) are recorded in the accounts in the fiscal period in which the qualifying expenditures are incurred provided there is reasonable assurance that the tax credits will be realized. Refundable investment tax credits, in connection with SR&ED activities, are accounted for using the cost reduction method and included in government assistance on the statements of loss and comprehensive loss. Amounts recorded for refundable investment tax credits are calculated based on the expected eligibility and tax treatment of qualifying SR&ED expenditures recorded in the Corporation’s consolidated financial statements. |
Critical accounting estimates and judgments | Critical accounting estimates and judgments The Corporation makes estimates and assumptions concerning the future that will, by definition, seldom equal actual results. The following are the estimates and judgments applied by management that most significantly affect the Corporation’s consolidated financial statements. The following estimates and judgments have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year. Calculation of initial fair value and carrying amount of long-term debt Atlantic Canada Opportunities Agency (“AOCA”) conditionally repayable loans (“Conditional ACOA”) loans The initial fair value of the Conditional ACOA loans is determined by using a discounted cash flow analysis for each of the loans, which require a number of assumptions. The difference between the face value and the initial fair value of the Conditional ACOA loans is recorded in the consolidated statements of loss and comprehensive loss as government assistance. The carrying amount of the Conditional ACOA loans requires management to adjust the long-term debt to reflect actual and revised estimated cash flows whenever revised cash flow estimates are made or new information related to market conditions is made available. Management recalculates the carrying amount by computing the present value of the estimated future cash flows at the original effective interest rate. Any adjustments are recognized in the consolidated statements of loss and comprehensive loss as accreted interest and other adjustments after initial recognition. The significant assumptions used in determining the discounted cash flows include estimating the amount and timing of future revenue for the Corporation and the discount rate. As the Conditional ACOA loans are repayable based on a percentage of gross revenue, if any, the determination of the amount and timing of future revenue significantly impacts the initial fair value of the loan, as well as the carrying value of the Conditional ACOA loans at each reporting date. The expected revenue streams include i) estimated royalties generated from the eventual commercialization of the Corporation’s products, and ii) estimated milestone payments generated upon entering into potential contractual partnerships and achieving development and sales milestones. The amount and timing of estimated milestone payments forecasted are (8) IMV Inc. Notes to the Consolidated Financial Statements For the years ended December 31, 2020 and 2019 (Expressed in thousands of Canadian dollars except for share and per share amounts) 4 Significant accounting policies, judgments and estimation uncertainty Critical accounting estimates and judgments earlier and less predictable, therefore, changes in the amount and timing of milestone payments could have a significant impact on the fair value of the loans. Further, the Corporation is in the early stages of research for its product candidates; accordingly, determination of the amount and timing of any revenue streams requires significant judgment by management. The discount rate determined on initial recognition of the Conditional ACOA loans is used to determine the present value of estimated future cash flows expected to be required to settle the debt. In determining the appropriate discount rates, the Corporation considered the interest rates of similar long-term debt arrangements with similar terms. The Conditional ACOA loans are repayable based on a percentage of gross revenue, if any; accordingly, finding financing arrangements with similar terms is difficult and management was required to use significant judgment in determining the appropriate discount rates. Management used a discount rate of 35% to discount the Conditional ACOA loans. If the weighted average discount rate used in determining the initial fair value and the carrying value at each reporting date of all Conditional ACOA loans, with repayment terms based on future revenue, had been determined to be higher by 10%, or lower by 10%, the carrying value of the long-term debt as at December 31, 2020 would have been an estimated $834 lower or $1,131 higher, respectively. A 10% increase or decrease in the total forecasted revenue would not have a significant impact on the amount recorded for the loans. If the total forecasted revenue were reduced to $nil, no amounts would be forecast to be repaid on the Conditional ACOA loans, and the Conditional ACOA loans payable at December 31, 2020 would be recorded at $nil, which would be a reduction in the liability of $4,246. If the timing of the receipt of forecasted future revenue was delayed by two years, the carrying value of the long-term debt at December 31, 2020 would have been an estimated $1,915 lower. Province of Nova Scotia (“the Province”) loan The initial fair value of the Province loan is determined by using a discounted cash flow analysis for the loan. The interest rate on the loan is below the market rate for a commercial loan with similar terms. The significant assumption used in determining the discounted cash flows is the discount rate. Any changes in the discount rate would impact the amount recorded as initial fair value of the long-term debt and the carrying value of the long-term debt at each reporting date. In determining the appropriate discount rate, the Corporation considers the interest rates of similar long-term debt arrangements with similar terms. The Province loan is a government loan with principal payments only beginning after seven years; accordingly, finding financing arrangements with similar terms is difficult and management was required to use significant judgment in determining the appropriate discount rates. Management used a discount rate of 11% to discount the Province loan. If the discount rate used for the Province loan had been determined to be higher or lower by 5% (resulting in discount rates of 16% or 6%, respectively), the carrying value of the long-term debt at December 31, 2020 would have been an estimated $501 lower or $597 higher, respectively. The difference between the book value and the initial fair value of the Province loan is recorded in the consolidated statements of loss and comprehensive loss as government assistance on initial recognition. (9) IMV Inc. Notes to the Consolidated Financial Statements For the years ended December 31, 2020 and 2019 (Expressed in thousands of Canadian dollars except for share and per share amounts) 4 Significant accounting policies, judgments and estimation uncertainty Critical accounting estimates and judgments Province of Nova Scotia (“the Province”) loan (continued) Any changes in the amounts recorded on the consolidated statements of financial position for the Province loan result in an offsetting charge to accreted interest after initial recognition in the consolidated statements of loss and comprehensive loss. |
Significant accounting polici_3
Significant accounting policies, judgments and estimation uncertainty (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure of significant accounting policies, judgments and estimation uncertainty [Abstract] | |
Schedule of Depreciation of Property and Equipment Annual Rates | Depreciation of property and equipment is calculated using the declining-balance method, with the exception of leasehold improvements, right-of-use assets and leased premises, at the following annual rates: Computer equipment 30% Computer software 100% Furniture and fixtures 20% Laboratory equipment 20% Leasehold improvements and right-of-use assets straight-line |
Amounts receivable (Tables)
Amounts receivable (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Trade and other current receivables [abstract] | |
Schedule of Amounts Receivable | 2020 2019 $ $ Amounts due from government assistance and government loans 1,322 - Sales tax receivable 481 406 Revenue from subcontracts - 45 Other 209 394 2,012 845 |
Lease obligation (Tables)
Lease obligation (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure of maturity analysis of operating lease payments [abstract] | |
Schedule of Lease Obligation | Amount $ Balance – December 31, 2018 1,398 Repayment of lease obligation (239 ) Accreted interest 149 Balance – December 31, 2019 1,308 Additions 155 Repayment of lease obligation (252 ) Accreted interest 146 Balance – December 31, 2020 1,357 Less: Current portion 139 Non-current portion 1,218 |
Property, plant and equipment (
Property, plant and equipment (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure of detailed information about property, plant and equipment [abstract] | |
Schedule of Property, plant and equipment | Computer equipment Leasehold and Furniture Laboratory Right-of- improve- software and fixtures equipment use assets ments Total $ $ $ $ $ $ Year ended December 31, 2019 Opening net book value 96 163 558 1,323 743 2,883 Additions 190 18 253 – 15 476 Disposals Cost (9 ) – (11 ) – – (20 ) Accumulated depreciation 9 – 10 – – 19 Depreciation for the year (119 ) (34 ) (144 ) (150 ) (81 ) (528 ) Closing net book value 167 147 666 1,173 677 2,830 As at December 31, 2019 Cost 456 212 1,588 1,417 815 4,488 Accumulated depreciation (289 ) (65 ) (922 ) (244 ) (138 ) (1,658 ) Net book value 167 147 666 1,173 677 2,830 Year ended December 31, 2020 Opening net book value 167 147 666 1,173 677 2,830 Additions 52 26 318 176 25 597 Disposals Cost (14 ) – (189 ) – – (203 ) Accumulated depreciation 12 – 118 – – 130 Depreciation for the year (96 ) (33 ) (139 ) (166 ) (81 ) (515 ) Closing net book value 121 140 774 1,183 621 2,839 As at December 31, 2020 Cost 495 238 1,717 1,593 839 4,882 Accumulated depreciation (374 ) (98 ) (943 ) (410 ) (218 ) (2,043 ) Net book value 121 140 774 1,183 621 2,839 |
Long-term debt (Tables)
Long-term debt (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Borrowings [abstract] | |
Schedule of Long-term debt | 2020 2019 $ $ ACOA Atlantic Innovation Fund (“AIF”), interest-free loan 1 1,523 1,404 ACOA AIF, interest-free loan 1 1,219 1,237 ACOA Business Development Program, interest-free loan with a maximum contribution of $395, repayable in monthly payments commencing October 2015 of $3 until October 2017 and $6 until June 2023. As at December 31, 2020, the amount drawn down on the loan, net of repayments, is $167 (2019 - $184). 159 180 ACOA AIF, interest-free loan 1 1,097 1,481 TNC 120-140 Eileen Stubbs Ltd. (the Landlord) loan, with an original balance of $300, bearing interest at 8% per annum, is repayable in monthly payments of $4 beginning February 1, 2019 until May 1, 2028. As at December 31, 2020, the balance on the loan is $255 (2019 - $279). 255 279 Province of Nova Scotia (the “Province”), secured loan with a maximum contribution of $5,000, bearing interest at a rate equal to the Province’s cost of funds plus 1%, compounded semi-annually and payable monthly. The loan is repayable in monthly payments beginning January 1, 2021 of $83 plus interest until March 2026. The Corporation and its subsidiary have provided a general security agreement granting a first security interest in favour of the Province of Nova Scotia in and to all the assets of the Corporation and its subsidiary, including the intellectual property. As at December 31, 2020, the amount drawn down on the loan is $5,000 (2019 - $5,000). 4,169 3,880 ACOA Regional Economic Growth through Innovation 1 406 - 8,828 8,461 Less: Current portion 1,094 88 7,734 8,373 |
Schedule of Repayments of Long-term debt | The minimum annual principal repayments of long-term debt over the next five years, excluding the repayments of the Conditional ACOA loans for 2021 and beyond which are not determinable at this time, are as follows: $ Year ending December 31, 2021 1,094 2022 850 2023 743 2024 642 2025 581 (14) IMV Inc. Notes to the Consolidated Financial Statements For the years ended December 31, 2020 and 2019 (Expressed in thousands of Canadian dollars except for share and per share amounts) 9 Long-term debt 2020 2019 $ $ Balance – Beginning of year 8,461 8,150 Borrowings 1,000 – Accreted interest and valuation adjustments 36 1,239 Revaluation of long-term debt (628 ) (840 ) Repayment of debt (41 ) (88 ) Balance – End of year 8,828 8,461 Less: Current portion 1,094 88 Non-current portion 7,734 8,373 |
Accounts payable, accrued and_2
Accounts payable, accrued and other liabilities (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Trade and other current payables [abstract] | |
Schedule of Accounts Payable, Accrued and Other Liabilities | 2020 2019 $ $ Trade payables 4,757 3,665 Accrued and other liabilities 4,404 2,477 Payroll taxes 21 15 Amounts due to Directors 58 60 9,240 6,217 |
Share capital (Tables)
Share capital (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure of classes of share capital [abstract] | |
Schedule of Share Capital | Unlimited number of common shares and preferred shares, issuable in series, all without par value. Common shares Amount # $ Issued and outstanding Balance – December 31, 2018 45,106,401 90,152 Issued for cash, net of issuance costs 5,404,855 26,957 Stock options exercised 105,196 353 Warrants exercised 14,423 82 Balance – December 31, 2019 50,630,875 117,544 Issued for cash, net of issuance costs 15,611,778 59,940 Stock options exercised 162,086 658 DSUs redeemed 76,920 184 Warrants exercised 611,888 3,029 Balance – December 31, 2020 67,093,547 181,355 |
Contributed surplus (Tables)
Contributed surplus (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure of terms and conditions of share-based payment arrangement [abstract] | |
Schedule of Contributed Surplus | Amount $ Contributed surplus Balance – December 31, 2018 6,504 Share-based compensation Stock options vested 1,138 DSUs vested 290 Reclassification of DSUs 955 Stock options exercised (258 ) Warrants expired 62 Balance – December 31, 2019 8,691 Share-based compensation Stock options vested 1,005 DSUs vested 537 Stock options exercised (404 ) DSUs Redeemed (189 ) Warrants expired 332 Balance – December 31, 2020 9,972 |
Schedule of DSU Activity | DSU activity for the years ended December 31, 2020 and December 31, 2019 are as follows: 2020 2019 # # Opening balance 360,965 223,604 Granted 147,671 137,361 Redeemed (79,106 ) – Closing balance 429,530 360,965 |
Schedule of Weighted Average Assumptions | 2020 2019 Risk-free interest rate 1.00% 1.81% Exercise price $5.50 $6.39 Market price $5.50 $6.39 Expected volatility 71% 64% Expected dividend yield – – Expected life (years) 4.2 4.2 Forfeiture rate 4% 5% |
Schedule of Option Activity | Option activity for the years ended December 31, 2020 and 2019 was as follows: 2020 2019 Weighted Weighted average average Number exercise price Number exercise price # $ # $ Outstanding - Beginning of year 1,573,411 4.63 1,474,477 4.12 Granted 395,850 5.50 343,100 6.39 Exercised (203,595 ) 1 2.42 (139,877 ) 1 2.32 Forfeited (47,638 ) 6.69 (91,789 ) 6.81 Cancelled (81,792 ) 6.92 – – Expired – – (12,500 ) 2.37 Outstanding - End of year 1,636,236 4.93 1,573,411 4.63 1 |
Schedule of Options Outstanding | At December 31, 2020, the following options were outstanding: Options outstanding Options exercisable Weighted Weighted Weighted average Weighted average Exercise average remaining average remaining price exercise contractual life exercise contractual life range Number price (years) Number price (years) $ # $ # $ 1.98 – 2.38 284,188 2.20 0.32 284,188 2.20 0.32 2.39 – 3.89 320,593 2.80 1.94 287,259 2.69 1.72 3.90 – 6.19 382,750 5.48 4.34 – – – 6.20 – 6.72 317,188 6.40 2.22 211,460 6.40 2.22 6.73 – 7.39 331,517 7.28 2.71 155,680 7.23 2.57 1,636,236 4.93 2.43 938,587 4.13 1.55 (19) |
Warrants (Tables)
Warrants (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | |
Schedule of Warrant Activity | Option activity for the years ended December 31, 2020 and 2019 was as follows: 2020 2019 Weighted Weighted average average Number exercise price Number exercise price # $ # $ Outstanding - Beginning of year 1,573,411 4.63 1,474,477 4.12 Granted 395,850 5.50 343,100 6.39 Exercised (203,595 ) 1 2.42 (139,877 ) 1 2.32 Forfeited (47,638 ) 6.69 (91,789 ) 6.81 Cancelled (81,792 ) 6.92 – – Expired – – (12,500 ) 2.37 Outstanding - End of year 1,636,236 4.93 1,573,411 4.63 1 |
Schedule of Weighted Average Assumptions | 2020 2019 Risk-free interest rate 1.00% 1.81% Exercise price $5.50 $6.39 Market price $5.50 $6.39 Expected volatility 71% 64% Expected dividend yield – – Expected life (years) 4.2 4.2 Forfeiture rate 4% 5% |
Warrants [Member] | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | |
Schedule of Warrant Activity | Warrant activity for the years ended December 31, 2020 and 2019, was as follows: 2020 2019 Weighted Weighted average average exercise exercise Number price Amount Number price Amount # $ $ # $ $ Opening balance 134,766 6.53 332 192,458 5.84 415 Granted 3,069,501 3.72 3,775 – – – Exercised (611,888 ) 3.72 (753 ) (14,423 ) 4.22 (21 ) Expired (134,766 ) 6.53 (332 ) (43,269 ) 4.22 (62 ) Closing balance 2,457,613 3.72 3,022 134,766 6.53 332 |
Schedule of Weighted Average Assumptions | The fair values of warrants are estimated using the Black-Scholes option pricing model. The weighted average assumptions used in the Black-Scholes valuation model for the periods presented were as follows: 2020 Risk-free interest rate 0.27 % Market price $3.12 Expected volatility 83 % Expected dividend yield – Expected life (years) 2 |
Deferred income taxes (Tables)
Deferred income taxes (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Major components of tax expense (income) [abstract] | |
Schedule of Reconciliation of Total Tax Recovery | The effective rate on the Corporation’s loss before income tax differs from the expected amount that would arise using the statutory income tax rates. A reconciliation of the difference is as follows: 2020 2019 $ $ Loss before income taxes (34,855 ) (27,365 ) Income tax rate 28.5 % 30.0 % (9,934 ) (8,210 ) Effect on income taxes of: Non-deductible share-based compensation 439 284 Unrecognized deductible temporary difference and carry forward amounts and experimental development expenditures 9,458 7,892 Other non-deductible items 37 34 Income tax recovery – – |
Schedule of Deferred Income Tax | The significant components of the Corporation’s deferred income tax are as follows: 2020 2019 $ $ Deferred income tax liabilities: Intangibles – – Deferred income tax assets: Non-capital losses – – Net deferred income tax liability – – |
Schedule of Balance of Temporary Differences for Deferred Income Tax Asset Recognized | The following reflects the balance of temporary differences for which no deferred income tax asset (liability) has been recognized: 2020 2019 $ $ Non-capital losses 104,980 77,389 SR&ED expenditures 37,659 29,558 Non-refundable investment tax credits 6,459 5,536 Deductible share issuance costs 4,028 3,452 Long-term debt 8,574 7,925 Lease obligation 347 362 Property and equipment (227 ) (400 ) |
Schedule of Non-Capital Losses | As at December 31, 2020, the Corporation had approximately $104,980 in losses available to reduce future taxable income. The benefit of these losses has not been recorded in the accounts as realization is not considered probable. These losses may be claimed no later than: $ For the year ending December 31, 2025 1,000 2026 1,100 2027 1,470 2028 1,770 2029 660 2030 2,640 2031 5,090 2032 4,110 2033 4,400 2034 3,680 2035 5,610 2036 5,130 2037 9,510 2038 13,440 2039 17,530 2040 27,840 104,980 |
Capital management (Tables)
Capital management (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure of capital management [Abstract] | |
Schedule of Capital Management | 2020 2019 $ $ Total long-term debt 8,828 8,461 Less: Cash and cash equivalents (46,362 ) (14,066 ) Net debt (37,534 ) (5,605 ) Equity 39,375 6,448 Total capital 1,841 843 |
Financial instruments (Tables)
Financial instruments (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure of detailed information about financial instruments [abstract] | |
Schedule of Fair Value of Financial Instruments | The following table sets out the approximate fair values of financial instruments as at the consolidated statements of financial position date with relevant comparatives: 2020 2019 Carrying Carrying value Fair value value Fair value $ $ $ $ Cash and cash equivalents 46,362 46,362 14,066 14,066 Amounts receivable 208 208 439 439 Accounts payable, accrued and other liabilities 8,734 8,734 6,202 6,202 Long-term debt 8,828 8,828 8,461 8,461 |
Schedule of Contractual Maturities for Long-Term Debt Repayable | The following table outlines the contractual maturities of the Corporation’s liabilities, including most likely timing of repayments of long-term debt that is repayable based on a percentage of revenues. The long-term debt is comprised of the contributions received described in note 11, less amounts that have been repaid as at December 31, 2020: Total Year 1 Years 2 to 3 Years 4 to 5 After 5 years $ $ $ $ $ Accounts payable and other liabilities 9,240 9,240 – – – Short-term and low value leases 39 18 21 – – Lease obligation 1,989 282 578 542 587 Long-term debt 16,503 1,253 2,372 2,153 10,725 27,771 10,793 2,971 2,695 11,312 |
Expenses by nature (Tables)
Expenses by nature (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Expenses | |
Schedule of Expenses by Nature | 2020 2019 $ $ Salaries, wages and benefits 9,371 7,831 Research and development expenditures, including clinical costs 19,989 13,594 Professional and consulting fees 2,488 1,779 Travel 66 680 Office, rent and telecommunications 760 684 Insurance 3,551 800 Marketing, communications and investor relations 1,579 1,675 Depreciation 515 527 Stock-based compensation (non-cash) 1,005 1,138 DSU compensation (non-cash) 537 (191 ) Other 690 693 Foreign exchange loss (gain) 1,259 (84 ) Accreted interest and valuation adjustments 36 1,239 Research and development tax credits (1,699 ) (1,571 ) Government assistance (4,991 ) (861 ) 35,156 27,933 |
Compensation of key management
Compensation of key management (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure of amounts incurred by entity for provision of key management personnel services provided by separate management entities [abstract] | |
Schedule of Compensation Awarded to Key Management | Key management includes the Corporation’s Directors, Chief Executive Officer, Chief Financial Officer, and Chief Medical Officer. Compensation awarded to key management is summarized as follows: 2020 2019 $ $ Salaries and other benefits 2,306 1,970 Stock-based compensation (non-cash) 1,288 1,290 3,594 3,260 |
Significant accounting polici_4
Significant accounting policies, judgments and estimation uncertainty (Narrative) (Details) - CAD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Disclosure of detailed information about borrowings [line items] | ||
Foreign exchange gain loss | $ (1,259) | $ 84 |
Vesting period | stock options vest over three years (33 ⅓% per year) and expire after five years. | |
Government assistance | $ 1,322 | |
Long-term debt | $ 7,734 | $ 8,373 |
Percentage of increase or decrease in total forecasted revenue | 10.00% | |
Forecasted revenue | ||
Period of forecasted revenue | two years | |
Carrying value of leased asset | $ 0 | |
ACOA loans [Member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Discount rate on loans | 35.00% | |
Weighted average discount rate | higher by 10%, or lower by 10% | |
Long-term debt | $ 1,915 | |
Loans payable | 4,246 | |
ACOA loans [Member] | Bottom of range [Member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Long-term debt | 834 | |
ACOA loans [Member] | Top of range [Member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Long-term debt | $ 1,131 | |
Province loan [Member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Discount rate on loans | 11.00% | |
Province loan [Member] | Bottom of range [Member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Discount rate on loans | 6.00% | |
Long-term debt | $ 501 | |
Province loan [Member] | Top of range [Member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Discount rate on loans | 16.00% | |
Long-term debt | $ 597 | |
Province loan [Member] | Weighted average [Member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Discount rate on loans | 5.00% |
Significant accounting polici_5
Significant accounting policies, judgments and estimation uncertainty (Schedule of Depreciation Rate) (Details) | 12 Months Ended |
Dec. 31, 2020 | |
Computer equipment [Member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Rate of depreciation of property and equipment | 30% |
Computer software [Member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Rate of depreciation of property and equipment | 100% |
Furniture and fixtures [Member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Rate of depreciation of property and equipment | 20% |
Laboratory equipment [Member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Rate of depreciation of property and equipment | 20% |
Leasehold improvements and right-of-use assets [Member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Rate of depreciation of property and equipment | straight-line |
Government grants and assista_2
Government grants and assistance (Narrative) (Details) $ in Thousands, $ in Thousands | Mar. 31, 2021CAD ($) | Dec. 31, 2020CAD ($) | Dec. 31, 2020USD ($) | Oct. 31, 2020CAD ($) | Aug. 31, 2020CAD ($) | Jul. 31, 2020CAD ($) | Jul. 31, 2020USD ($) | May 31, 2020CAD ($) | May 30, 2020 | Dec. 31, 2019CAD ($) |
Disclosure of detailed information about financial instruments [line items] | ||||||||||
Amount of funding | $ 1,322 | |||||||||
Deferred accounts payable | 486 | |||||||||
NRC IRAP Funding [Member] | ||||||||||
Disclosure of detailed information about financial instruments [line items] | ||||||||||
Amount of funding | $ 500 | |||||||||
IAP [Member] | ||||||||||
Disclosure of detailed information about financial instruments [line items] | ||||||||||
Amount of funding | 601 | |||||||||
NRC IRAP [Member] | ||||||||||
Disclosure of detailed information about financial instruments [line items] | ||||||||||
Amount of funding | $ 637 | $ 54 | $ 259 | $ 378 | ||||||
Percentage of reimburse eligible project salaries | 100.00% | 80.00% | ||||||||
Percentage of reimubrse eligible contractor costs | 75.00% | 50.00% | ||||||||
Amount of receivables funding | 45 | |||||||||
NGen [Member] | ||||||||||
Disclosure of detailed information about financial instruments [line items] | ||||||||||
Amount of funding | $ 2,500 | |||||||||
Percentage of reimburse eligible project salaries | 50.00% | 50.00% | ||||||||
Amount of Advances | 1,568 | $ 2,054 | ||||||||
ACOA [Member] | ||||||||||
Disclosure of detailed information about financial instruments [line items] | ||||||||||
Amount of funding | 100 | $ 1 | ||||||||
NRC IRAP Funding [Member] | ||||||||||
Disclosure of detailed information about financial instruments [line items] | ||||||||||
Amount of funding | 1,505 | |||||||||
Amount of receivables funding | $ 1,167 |
Amounts receivable (Schedule of
Amounts receivable (Schedule of Amounts Receivable) (Details) - CAD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Trade and other current receivables [abstract] | ||
Amounts due from government assistance and government loans | $ 1,322 | |
Sales tax receivable | 481 | 406 |
Revenue from subcontracts | 45 | |
Other | 209 | 394 |
Amounts receivable (note 5) | $ 2,012 | $ 845 |
Lease obligation (Details)
Lease obligation (Details) - CAD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Disclosure of maturity analysis of operating lease payments [abstract] | ||
Discounted incremental borrowing rate | 11.00% | |
Right of use assets in property, plant and equipment | $ 176 | |
Expenses related to low value assets | 20 | |
Expenses related to short-term leases | 20 | |
Variable lease payments expenses not included in measurement of lease liabilities | $ 170 | $ 161 |
Lease obligation (Schedule of L
Lease obligation (Schedule of Lease Obligation) (Details) - CAD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Disclosure of maturity analysis of operating lease payments [abstract] | ||
Balance - Beginning of year | $ 1,398 | $ 1,308 |
Additions | 155 | |
Repayment of lease obligation | (252) | (239) |
Accreted interest | 146 | 149 |
Balance - End of year | 1,357 | 1,398 |
Less: Current portion | 139 | 100 |
Non-current portion | $ 1,218 | $ 1,208 |
Property, plant and equipment_2
Property, plant and equipment (Schedule of Property, plant and equipment) (Details) - CAD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Disclosure of detailed information about property, plant and equipment [line items] | ||
Opening net book value | $ 2,830 | $ 2,883 |
Additions | 597 | 476 |
Disposals | ||
Cost | (203) | (20) |
Accumulated depreciation | 130 | 19 |
Depreciation for the year | (515) | (528) |
Closing net book value | 2,839 | 2,830 |
Computer equipment [Member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Opening net book value | 167 | 96 |
Additions | 52 | 190 |
Disposals | ||
Cost | (14) | (9) |
Accumulated depreciation | 12 | 9 |
Depreciation for the year | (96) | (119) |
Closing net book value | 121 | 167 |
Furniture and fixtures [Member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Opening net book value | 147 | 163 |
Additions | 26 | 18 |
Disposals | ||
Cost | ||
Accumulated depreciation | ||
Depreciation for the year | (33) | (34) |
Closing net book value | 140 | 147 |
Laboratory equipment [Member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Opening net book value | 666 | 558 |
Additions | 318 | 253 |
Disposals | ||
Cost | (189) | (11) |
Accumulated depreciation | 118 | 10 |
Depreciation for the year | (139) | (144) |
Closing net book value | 774 | 666 |
Right-of-use assets [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Opening net book value | 1,173 | 1,323 |
Additions | 176 | |
Disposals | ||
Cost | ||
Accumulated depreciation | ||
Depreciation for the year | (166) | (150) |
Closing net book value | 1,183 | 1,173 |
Leasehold improvements and right-of-use assets [Member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Opening net book value | 677 | 743 |
Additions | 25 | 15 |
Disposals | ||
Cost | ||
Accumulated depreciation | ||
Depreciation for the year | (81) | (81) |
Closing net book value | $ 621 | $ 677 |
Property, plant and equipment_3
Property, plant and equipment (Schedule of Property, plant and equipment Net Book Value) (Details) - CAD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property and equipment | $ 2,839 | $ 2,830 | $ 2,883 |
Cost [Member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property and equipment | 4,882 | 4,488 | |
Accumulated depreciation [Member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property and equipment | (2,043) | (1,658) | |
Computer equipment [Member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property and equipment | 121 | 167 | 96 |
Computer equipment [Member] | Cost [Member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property and equipment | 495 | 456 | |
Computer equipment [Member] | Accumulated depreciation [Member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property and equipment | (374) | (289) | |
Furniture and fixtures [Member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property and equipment | 140 | 147 | 163 |
Furniture and fixtures [Member] | Cost [Member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property and equipment | 238 | 212 | |
Furniture and fixtures [Member] | Accumulated depreciation [Member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property and equipment | (98) | (65) | |
Laboratory equipment [Member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property and equipment | 774 | 666 | 558 |
Laboratory equipment [Member] | Cost [Member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property and equipment | 1,717 | 1,588 | |
Laboratory equipment [Member] | Accumulated depreciation [Member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property and equipment | (943) | (922) | |
Right-of-use assets [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property and equipment | 1,183 | 1,173 | 1,323 |
Right-of-use assets [member] | Cost [Member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property and equipment | 1,593 | 1,417 | |
Right-of-use assets [member] | Accumulated depreciation [Member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property and equipment | (410) | (244) | |
Leasehold improvements and right-of-use assets [Member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property and equipment | 621 | 677 | $ 743 |
Leasehold improvements and right-of-use assets [Member] | Cost [Member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property and equipment | 839 | 815 | |
Leasehold improvements and right-of-use assets [Member] | Accumulated depreciation [Member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property and equipment | $ (218) | $ (138) |
Long-term debt (Narrative) (Det
Long-term debt (Narrative) (Details) - CAD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Disclosure of detailed information about borrowings [line items] | ||
Repayment of contributions received | $ 16,005 | $ 15,147 |
Percentage of required to repay of outstanding principal of loan | 40.00% | |
Repayment borrowings term | In June 2019, the Corporation amended its loan agreement with the Province. Previously, the maturity date of the loan was August 9, 2020. The Corporation shall now start repaying the balance of the principal amount on the first day of January 2021, by making 60 monthly principal payments of $83 plus interest from January 2021 to December 2025. The annual interest rate remains at the Province’s cost of funds plus 1%. | |
Cash flow from operations | $ (34,745) | $ (27,288) |
Effective interest rate of the loan | 11.00% | |
Revaluation difference recorded as government assistance | $ 840 | |
Province loan [Member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Cash flow from operations | $ 1,500 |
Long-term debt (Schedule of Lon
Long-term debt (Schedule of Long-Term debt) (Details) - CAD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of detailed information about borrowings [line items] | |||
Borrowings | $ 8,828 | $ 8,461 | $ 8,150 |
Less: Current portion | 1,094 | 88 | |
Long-term debt | $ 7,734 | 8,373 | |
Repayment borrowings term | In June 2019, the Corporation amended its loan agreement with the Province. Previously, the maturity date of the loan was August 9, 2020. The Corporation shall now start repaying the balance of the principal amount on the first day of January 2021, by making 60 monthly principal payments of $83 plus interest from January 2021 to December 2025. The annual interest rate remains at the Province’s cost of funds plus 1%. | ||
Proceeds from borrowings net | $ 3,130 | ||
Interest rate | 11.00% | ||
Atlantic Canada Opportunities Agency [Member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Borrowings | $ 1,523 | 1,404 | |
Repayment start date | December 1, 2008 | ||
Repayment borrowings term | Annual repayments, commencing December 1, 2008, are calculated as a percentage of gross revenue for the preceding fiscal year, at 2% when gross revenues are less than $5,000 and 5% when gross revenues are greater than $5,000. | ||
Proceeds from borrowings net | $ 3,744 | 3,744 | |
Atlantic Canada Opportunities Agency [Member] | Top of range [Member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Borrowings | 3,786 | ||
ACOA Atlantic Innovation Fund [Member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Borrowings | $ 1,219 | 1,237 | |
Repayment start date | December 1, 2011 | ||
Repayment borrowings term | Annual repayments, commencing December 1, 2011, are calculated as a percentage of gross revenue for the preceding fiscal year, at 2% when gross revenues are less than $5,000 and 5% when gross revenues are greater than $5,000. | ||
Proceeds from borrowings net | $ 2,995 | 2,995 | |
ACOA Atlantic Innovation Fund [Member] | Top of range [Member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Borrowings | 3,000 | ||
ACOA Business Development Program [Member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Borrowings | $ 159 | 180 | |
Repayment start date | October 2015 | ||
Repayment borrowings term | repayable in monthly payments commencing October 2015 of $3 until October 2017 and $6 until June 2023. | ||
Proceeds from borrowings net | $ 167 | 184 | |
ACOA Business Development Program [Member] | Top of range [Member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Borrowings | 395 | ||
ACOA Atlantic Innovation Fund One [Member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Borrowings | $ 1,097 | 1,481 | |
Repayment start date | September 1, 2014 | ||
Repayment borrowings term | annual repayments commencing September 1, 2014, are calculated as a percentage of gross revenue from specific product(s) for the preceding fiscal year, at 5% for the first 5 years and 10%, thereafter. | ||
Proceeds from borrowings net | $ 2,944 | 2,944 | |
ACOA Atlantic Innovation Fund One [Member] | Top of range [Member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Borrowings | 2,944 | ||
TNC 120-140 Eileen Stubbs Ltd [Member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Borrowings | $ 255 | 279 | |
Repayment borrowings term | repayable in monthly payments of $4 beginning February 1, 2019 until May 1, 2028. | ||
Proceeds from borrowings net | $ 255 | 279 | |
Interest rate | 8.00% | ||
TNC 120-140 Eileen Stubbs Ltd [Member] | Top of range [Member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Borrowings | $ 300 | ||
Province of Nova Scotia Secured Loan [Member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Borrowings | $ 4,169 | 3,880 | |
Repayment borrowings term | repayable in monthly payments beginning January 1, 2021 of $83 plus interest until March 2026. | ||
Proceeds from borrowings net | $ 5,000 | 5,000 | |
Interest rate | 1.00% | ||
Province of Nova Scotia Secured Loan [Member] | Top of range [Member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Borrowings | $ 5,000 | ||
ACOA Regional Economic Growth through Innovation [Member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Borrowings | $ 406 | ||
Repayment borrowings term | Annual repayments, commencing September 1, 2022, are calculated as a percentage of gross revenue from DPX-COVID-19 product(s) for the preceding fiscal year, at 5% when gross revenues are less than $5,000 and 10% when gross revenues are greater than $5,000. Subsequent to September 1, 2024, any outstanding balance is payable in full on December 31, 2024 from DPX-COVID-19 gross revenues. | ||
Proceeds from borrowings net | $ 900 | ||
ACOA Regional Economic Growth through Innovation [Member] | Top of range [Member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Borrowings | $ 1,000 |
Long-term debt (Schedule of Rep
Long-term debt (Schedule of Repayments of Long-Term Debt) (Details) - CAD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Borrowings [abstract] | ||
Year ending December 31, 2021 | $ 1,094 | |
2022 | 850 | |
2023 | 743 | |
2024 | 642 | |
2025 | 581 | |
Balance - Beginning of year | 8,461 | $ 8,150 |
Accreted interest and valuation adjustments | 36 | 1,239 |
Revaluation of long-term debt | (628) | (840) |
Repayment of debt | (41) | (88) |
Balance - End of year | 8,828 | 8,461 |
Less: Current portion | (1,094) | (88) |
Non-current portion | $ 7,734 | $ 8,373 |
Accounts payable, accrued and_3
Accounts payable, accrued and other liabilities (Schedule of Accounts payable, accrued and other liabilities) (Details) - CAD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Trade and other current payables [abstract] | ||
Trade payables | $ 4,757 | $ 3,665 |
Accrued and other liabilities | 4,404 | 2,477 |
Payroll taxes | 21 | 15 |
Amounts due to Directors | 58 | 60 |
Accounts payable and accrued liabilities | $ 9,240 | $ 6,217 |
Share capital (Narrative) (Deta
Share capital (Narrative) (Details) $ / shares in Units, $ in Thousands, $ in Thousands | May 07, 2020CAD ($)$ / sharesshares | Mar. 11, 2019CAD ($)shares$ / shares | Mar. 06, 2019CAD ($)$ / sharesshares | Oct. 16, 2020CAD ($) | Oct. 16, 2020USD ($) | Jun. 30, 2020CAD ($)shares | Jun. 30, 2020USD ($)shares | Mar. 17, 2020CAD ($)shares | Mar. 17, 2020USD ($)shares | Mar. 15, 2021CAD ($)shares | Dec. 31, 2020CAD ($)shares | Dec. 31, 2019CAD ($)shares | |
Shares reserved to meet outstanding stock options, warrants and deferred share units | shares | 4,523,379 | 2,069,142 | |||||||||||
Proceeds from options exercises | $ 254 | $ 95 | |||||||||||
Proceeds from public offering | 25,082 | ||||||||||||
Share issue costs | 2,039 | 2,499 | |||||||||||
Share issue costs including cash costs | $ 152 | ||||||||||||
Exercised options to purchase common stock | shares | [1] | 203,595 | 139,877 | ||||||||||
Underwriters [Member] | |||||||||||||
Additional proceeds from options exercises | $ 2,751 | ||||||||||||
Proceeds from options exercises | 29,456 | ||||||||||||
Share issue costs including cash costs | $ 2,499 | ||||||||||||
Exercised options to purchase common stock | shares | 504,855 | ||||||||||||
Exercise price of option | $ / shares | $ 5.45 | ||||||||||||
Equity Distribution Agreement [Member] | |||||||||||||
Number of shares sold | shares | 4,770,890 | 4,770,890 | 2,070,883 | 2,070,883 | 6,841,773 | ||||||||
Gross proceeds from sale of shares | $ 33,185 | $ 7,639 | $ 40,824 | ||||||||||
Proceeds from public offering | $ 50,000 | $ 245 | $ 30,000 | 245 | |||||||||
Share issue costs including cash costs | $ 255 | $ 1,784 | |||||||||||
Equity Distribution Agreement [Member] | Equity Transaction [Member] | |||||||||||||
Number of shares sold | shares | 533,994 | ||||||||||||
Gross proceeds from sale of shares | $ 2,304 | ||||||||||||
Shares issued in private placement [Member] | |||||||||||||
Shares issued in public offering | shares | 8,770,005 | ||||||||||||
Shares issued price per share in public offering | $ / shares | $ 2.86 | ||||||||||||
Proceeds from public offering | $ 25,082 | ||||||||||||
Warrants exercise price per share | $ / shares | $ 3.72 | ||||||||||||
Conversion description | Each unit consisted of one common share and 0.35 of one common share purchase warrant | ||||||||||||
Warrants term | 24 months | ||||||||||||
Warrants expiration date | May 7, 2022 | ||||||||||||
Value allocated to the common shares issued | $ 21,307 | ||||||||||||
Value allocated to the warrants | $ 3,775 | ||||||||||||
Shares issued in public offering [Member] | |||||||||||||
Shares issued in public offering | shares | 4,900,000 | ||||||||||||
Shares issued price per share in public offering | $ / shares | $ 5.45 | ||||||||||||
Proceeds from public offering | $ 26,705 | ||||||||||||
[1] | Of the 203,595 (2019 - 139,877) options exercised, 109,845 (2019 - 98,408) elected the cashless exercise, under which 68,336 shares (2019 - 63,727) were issued. These options would have otherwise been exercisable for proceeds of $241 (2019 - $229) on the exercise date. |
Share capital (Schedule of Shar
Share capital (Schedule of Share Capital) (Details) - CAD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Disclosure of classes of share capital [line items] | ||
Balance | $ 6,448 | $ 4,317 |
Stock options exercised | 254 | 95 |
Warrants exercised | 2,276 | 61 |
Balance | 39,375 | 6,448 |
Share Capital [Member] | ||
Disclosure of classes of share capital [line items] | ||
Balance | $ 117,544 | $ 90,152 |
Issued and outstanding Begning Balance, shares | 50,630,875 | 45,106,401 |
Issued for cash, net of issuance costs | $ 59,940 | $ 26,957 |
Issued for cash, net of issuance costs, shares | 15,611,778 | 5,404,855 |
Stock options exercised | $ 658 | $ 353 |
Stock options exercised, shares | 162,086 | 105,196 |
DSUs redeemed | $ 184 | |
DSUs redeemed, shares | 76,920 | |
Warrants exercised | $ 3,029 | $ 82 |
Warrants exercised, shares | 611,888 | 14,423 |
Balance | $ 181,355 | $ 117,544 |
Issued and outstanding Ending Balance, shares | 67,093,547 | 50,630,875 |
Contributed surplus (Narrative)
Contributed surplus (Narrative) (Details) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2020CAD ($)shares$ / shares | Dec. 31, 2019CAD ($)shares$ / shares | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Vesting terms of options | stock options vest over three years (33 ⅓% per year) and expire after five years. | |
Stock Options granted | 395,850 | 343,100 |
Weighted average exercise price | $ / shares | $ 5.50 | $ 6.39 |
Proceeds from options exercised | $ | $ 254 | $ 95 |
Weighted average options exercisable | 938,587 | |
Weighted average exercise price of options exercisable | $ / shares | $ 4.13 | |
DSU Plan [Member] | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Maximum number of common shares issuable under the Plan | 968,750 | |
Compensation expense | $ | $ 537 | $ 191 |
Stock option plan [Member] | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Maximum number of common shares issuable under the Plan | 4,600,000 | |
Stock options [Member] | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Terms of options | The term of the option is determined by the Board of Directors, not to exceed ten years from the date of grant, however, the majority of options expire in five years. | |
Vesting terms of options | The vesting of the options is determined by the Board and, beginning January 1, 2018, is typically 33 1/3% every year after the date of grant. | |
Cashless options exercised | 109,845 | 98,408 |
Options Issued | 68,336 | 63,727 |
Proceeds from options exercised | $ | $ 241 | $ 229 |
Weighted average options exercisable | 938,587 | 911,732 |
Weighted average exercise price of options exercisable | $ / shares | $ 4.13 | $ 3.29 |
Stock options [Member] | Employees and consultants [Member] | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Terms of options | five years | five years |
Stock Options granted | 395,850 | 343,100 |
Weighted average exercise price | $ / shares | $ 5.50 | $ 6.39 |
Stock Options granted, value | $ | $ 1,168 | $ 1,112 |
Weighted average grant date value per share | $ / shares | $ 2.95 | $ 3.24 |
Contributed surplus (Schedule o
Contributed surplus (Schedule of Contributed Surplus) (Details) - CAD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Balance | $ 6,448 | $ 4,317 |
Share-based compensation - stock options vested | 1,005 | 1,138 |
Stock options exercised | 254 | 95 |
Balance | 39,375 | 6,448 |
Contributed Surplus [Member] | ||
Balance | 8,691 | 6,504 |
Share-based compensation - stock options vested | 1,005 | 1,138 |
Share-based compensation - DSUs vested | 537 | 290 |
Share-based compensation - Reclassification of DSUs | (404) | 955 |
Stock options exercised | (189) | (258) |
Warrants expired | 332 | 62 |
Balance | $ 9,972 | $ 8,691 |
Contributed surplus (Schedule_2
Contributed surplus (Schedule of DSU Activity) (Details) - DSU Plan [Member] - shares | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Opening balance | 360,965 | 223,604 |
Granted | 147,671 | 137,361 |
Redeemed | (79,106) | |
Closing balance | 429,530 | 360,965 |
Contributed surplus (Schedule_3
Contributed surplus (Schedule of Weighted Average Assumptions) (Details) | 12 Months Ended | |
Dec. 31, 2020Years$ / shares | Dec. 31, 2019Years$ / shares | |
Disclosure of terms and conditions of share-based payment arrangement [abstract] | ||
Risk-free interest rate | 1.00% | 1.81% |
Exercise price | $ 5.50 | $ 6.39 |
Market price | $ 5.50 | $ 6.39 |
Expected volatility | 71.00% | 64.00% |
Expected dividend yield | ||
Expected life (years) | Years | 4.2 | 4.2 |
Forfeiture rate | 4.00% | 5.00% |
Contributed surplus (Schedule_4
Contributed surplus (Schedule of Option Activity) (Details) | 12 Months Ended | ||
Dec. 31, 2020shares$ / shares | Dec. 31, 2019shares$ / shares | ||
Number | |||
Outstanding - Beginning of year | shares | 1,573,411 | 1,474,477 | |
Granted | shares | 395,850 | 343,100 | |
Exercised | shares | [1] | (203,595) | (139,877) |
Forfeited | shares | (47,638) | (91,789) | |
Cancelled | shares | (81,792) | ||
Expired | shares | (12,500) | ||
Outstanding - End of year | shares | 1,636,236 | 1,573,411 | |
Weighted average exercise price | |||
Outstanding - Beginning of year | $ / shares | $ 4.63 | $ 4.12 | |
Granted | $ / shares | 5.50 | 6.39 | |
Exercised | $ / shares | 2.42 | 2.32 | |
Forfeited | $ / shares | 6.69 | 6.81 | |
Cancelled | $ / shares | 6.92 | ||
Expired | $ / shares | 2.37 | ||
Outstanding - End of year | $ / shares | $ 4.93 | $ 4.63 | |
[1] | Of the 203,595 (2019 - 139,877) options exercised, 109,845 (2019 - 98,408) elected the cashless exercise, under which 68,336 shares (2019 - 63,727) were issued. These options would have otherwise been exercisable for proceeds of $241 (2019 - $229) on the exercise date. |
Contributed surplus (Schedule_5
Contributed surplus (Schedule of Options Outstanding) (Details) | Dec. 31, 2020sharesYears$ / shares | Dec. 31, 2019shares$ / shares | Dec. 31, 2018shares$ / shares |
Disclosure of number and weighted average remaining contractual life of outstanding share options [line items] | |||
Options outstanding, Number | shares | 1,636,236 | 1,573,411 | 1,474,477 |
Options outstanding, Weighted average exercise price | $ / shares | $ 4.93 | $ 4.63 | $ 4.12 |
Options outstanding, Weighted average remaining contractual life (years) | Years | 2.43 | ||
Options exercisable, Number | shares | 938,587 | ||
Options exercisable, Weighted average exercise price | $ / shares | $ 4.13 | ||
Options exercisable, Weighted average remaining contractual life (years) | Years | 1.55 | ||
Exercise price range 1.98 - 2.38 [Member] | |||
Disclosure of number and weighted average remaining contractual life of outstanding share options [line items] | |||
Options outstanding, Number | shares | 284,188 | ||
Options outstanding, Weighted average exercise price | $ / shares | $ 2.20 | ||
Options outstanding, Weighted average remaining contractual life (years) | Years | 0.32 | ||
Options exercisable, Number | shares | 284,188 | ||
Options exercisable, Weighted average exercise price | $ / shares | $ 2.20 | ||
Options exercisable, Weighted average remaining contractual life (years) | Years | 0.32 | ||
Exercise price range 2.39 - 3.89 [Member] | |||
Disclosure of number and weighted average remaining contractual life of outstanding share options [line items] | |||
Options outstanding, Number | shares | 320,593 | ||
Options outstanding, Weighted average exercise price | $ / shares | $ 2.80 | ||
Options outstanding, Weighted average remaining contractual life (years) | Years | 1.94 | ||
Options exercisable, Number | shares | 287,259 | ||
Options exercisable, Weighted average exercise price | $ / shares | $ 2.69 | ||
Options exercisable, Weighted average remaining contractual life (years) | Years | 1.72 | ||
Exercise price range 3.90 - 6.19 [Member] | |||
Disclosure of number and weighted average remaining contractual life of outstanding share options [line items] | |||
Options outstanding, Number | shares | 382,750 | ||
Options outstanding, Weighted average exercise price | $ / shares | $ 5.48 | ||
Options outstanding, Weighted average remaining contractual life (years) | Years | 4.34 | ||
Options exercisable, Number | shares | |||
Options exercisable, Weighted average exercise price | $ / shares | |||
Options exercisable, Weighted average remaining contractual life (years) | Years | |||
Exercise price range 6.20 - 6.72 [Member] | |||
Disclosure of number and weighted average remaining contractual life of outstanding share options [line items] | |||
Options outstanding, Number | shares | 317,188 | ||
Options outstanding, Weighted average exercise price | $ / shares | $ 6.40 | ||
Options outstanding, Weighted average remaining contractual life (years) | Years | 2.22 | ||
Options exercisable, Number | shares | 211,460 | ||
Options exercisable, Weighted average exercise price | $ / shares | $ 6.40 | ||
Options exercisable, Weighted average remaining contractual life (years) | Years | 2.22 | ||
Exercise price range 6.73 - 7.39 [Member] | |||
Disclosure of number and weighted average remaining contractual life of outstanding share options [line items] | |||
Options outstanding, Number | shares | 331,517 | ||
Options outstanding, Weighted average exercise price | $ / shares | $ 7.28 | ||
Options outstanding, Weighted average remaining contractual life (years) | Years | 2.71 | ||
Options exercisable, Number | shares | 155,680 | ||
Options exercisable, Weighted average exercise price | $ / shares | $ 7.23 | ||
Options exercisable, Weighted average remaining contractual life (years) | Years | 2.57 |
Warrants (Schedule of Warrant A
Warrants (Schedule of Warrant Activity) (Details) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020CAD ($)shares$ / shares | Dec. 31, 2019CAD ($)shares$ / shares | ||
Number | |||
Outstanding - Beginning of year | shares | 1,573,411 | 1,474,477 | |
Granted | shares | 395,850 | 343,100 | |
Exercised | shares | [1] | (203,595) | (139,877) |
Expired | shares | (12,500) | ||
Outstanding - End of year | shares | 1,636,236 | 1,573,411 | |
Weighted average exercise price | |||
Outstanding - Beginning of year | $ / shares | $ 4.63 | $ 4.12 | |
Granted | $ / shares | 5.50 | 6.39 | |
Exercised | $ / shares | 2.42 | 2.32 | |
Expired | $ / shares | 2.37 | ||
Outstanding - End of year | $ / shares | $ 4.93 | $ 4.63 | |
Warrants [Member] | |||
Number | |||
Outstanding - Beginning of year | shares | 134,766 | 192,458 | |
Granted | shares | 3,069,501 | ||
Exercised | shares | (611,888) | (14,423) | |
Expired | shares | (134,766) | (43,269) | |
Outstanding - End of year | shares | 2,457,613 | 134,766 | |
Weighted average exercise price | |||
Outstanding - Beginning of year | $ / shares | $ 6.53 | $ 5.84 | |
Granted | $ / shares | 3.72 | ||
Exercised | $ / shares | 3.72 | 4.22 | |
Expired | $ / shares | 6.53 | 4.22 | |
Outstanding - End of year | $ / shares | $ 3.72 | $ 6.53 | |
Amount | |||
Opening balance | $ | $ 332 | $ 415 | |
Granted | $ | 3,775 | ||
Exercised | $ | (753) | (21) | |
Expired | $ | (332) | (62) | |
Closing balance | $ | $ 3,022 | $ 332 | |
[1] | Of the 203,595 (2019 - 139,877) options exercised, 109,845 (2019 - 98,408) elected the cashless exercise, under which 68,336 shares (2019 - 63,727) were issued. These options would have otherwise been exercisable for proceeds of $241 (2019 - $229) on the exercise date. |
Warrants (Schedule of Weighted
Warrants (Schedule of Weighted Average Assumptions) (Details) | 12 Months Ended | |
Dec. 31, 2020Years$ / shares | Dec. 31, 2019Years$ / shares | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Risk-free interest rate | 1.00% | 1.81% |
Market price | $ / shares | $ 5.50 | $ 6.39 |
Expected volatility | 71.00% | 64.00% |
Expected dividend yield | ||
Expected life (years) | Years | 4.2 | 4.2 |
Warrants [Member] | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Risk-free interest rate | 0.27% | |
Market price | $ / shares | $ 3.12 | |
Expected volatility | 83.00% | |
Expected dividend yield | ||
Expected life (years) | Years | 2 |
Deferred income taxes (Schedule
Deferred income taxes (Schedule of Reconciliation of Total Tax Recovery) (Details) - CAD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Major components of tax expense (income) [abstract] | ||
Loss before income taxes | $ (34,855) | $ (27,365) |
Income tax rate | 28.50% | 30.00% |
Accounting profit | $ (9,934) | $ (8,210) |
Effect on income taxes of: | ||
Non-deductible share-based compensation | 439 | 284 |
Unrecognized deductible temporary difference and carry forward amounts and experimental development expenditures | 9,458 | 7,892 |
Other non-deductible items | 37 | 34 |
Income tax recovery |
Deferred income taxes (Schedu_2
Deferred income taxes (Schedule of Deferred Income Tax) (Details) - CAD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Deferred income tax liabilities: | ||
Intangibles | ||
Deferred income tax assets: | ||
Non-capital losses | ||
Net deferred income tax liability |
Deferred income taxes (Schedu_3
Deferred income taxes (Schedule of Balance of Temporary Differences for Deferred Income Tax Asset Recognized) (Details) - CAD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Major components of tax expense (income) [abstract] | ||
Non-capital losses | $ 104,980 | $ 77,389 |
SR&ED expenditures | 37,659 | 29,558 |
Non-refundable investment tax credits | 6,459 | 5,536 |
Deductible share issuance costs | 4,028 | 3,452 |
Long-term debt | 8,574 | 7,925 |
Lease obligation | 347 | 362 |
Property and equipment | $ (227) | $ (400) |
Deferred income taxes (Schedu_4
Deferred income taxes (Schedule of Non-Capital Losses) (Details) - CAD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Non-capital losses | $ 104,980 | $ 77,389 |
2025 [Member] | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Non-capital losses | 1,000 | |
2026 [Member] | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Non-capital losses | 1,100 | |
2027 [Member] | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Non-capital losses | 1,470 | |
2028 [Member] | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Non-capital losses | 1,770 | |
2029 [Member] | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Non-capital losses | 660 | |
2030 [Member] | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Non-capital losses | 2,640 | |
2031 [Member] | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Non-capital losses | 5,090 | |
2032 [Member] | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Non-capital losses | 4,110 | |
2033 [Member] | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Non-capital losses | 4,400 | |
2034 [Member] | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Non-capital losses | 3,680 | |
2035 [Member] | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Non-capital losses | 5,610 | |
2036 [Member] | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Non-capital losses | 5,130 | |
2037 [Member] | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Non-capital losses | 9,510 | |
2038 [Member] | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Non-capital losses | 13,440 | |
2039 [Member] | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Non-capital losses | 17,530 | |
2040 [Member] | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Non-capital losses | $ 27,840 |
Capital management (Schedule of
Capital management (Schedule of Capital management) (Details) - CAD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Disclosure of capital management [Abstract] | |||
Total long-term debt | $ 8,828 | $ 8,461 | $ 8,150 |
Less: Cash and cash equivalents | (46,362) | (14,066) | (14,895) |
Net debt | (37,534) | (5,605) | |
Equity | 39,375 | 6,448 | $ 4,317 |
Total capital | $ 1,841 | $ 843 |
Financial instruments (Narrativ
Financial instruments (Narrative) (Details) - CAD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of detailed information about financial instruments [line items] | |||
Interest rate | 11.00% | ||
Total amount drawn down | $ 1,094 | $ 88 | |
Principal debt payments | 41 | 88 | |
Amounts receivable | 2,012 | 845 | |
Accumulated deficit | 154,974 | ||
Cash and cash equivalents | 46,362 | 14,066 | $ 14,895 |
Foreign exchange gain loss | $ (1,259) | 84 | |
Percentage of Foreign exchange gain loss | 1.00% | ||
Repayments of current borrowings | $ 2,645 | ||
Interest rate risk [Member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Total amount drawn down | 5,000 | $ 5,000 | |
Interest payments | $ 135 | ||
Loan terms | 84 months | ||
Principal debt payments | $ 1,000 | ||
Interest rate risk [Member] | Principal debt payments [Member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Interest payments | 19 | ||
Principal debt payments | 67 | ||
Interest rate risk [Member] | Principal debt payments [Member] | Transaction One [Member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Principal debt payments | $ 5 | ||
Fixed interest rate [Member] | Interest rate risk [Member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Interest rate | 1.00% | ||
Fixed interest rate [Member] | Interest rate risk [Member] | Principal debt payments [Member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Interest rate | 8.00% |
Financial instruments (Schedule
Financial instruments (Schedule of Fair Value of Financial Instruments) (Details) - CAD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Disclosure of detailed information about financial instruments [line items] | |||
Cash and cash equivalents | $ 46,362 | $ 14,066 | $ 14,895 |
Amounts receivable | 2,012 | 845 | |
Accounts payable and accrued liabilities | 9,240 | 6,217 | |
Long-term debt | 7,734 | 8,373 | |
Carrying value [Member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Cash and cash equivalents | 46,362 | 14,066 | |
Amounts receivable | 208 | 439 | |
Accounts payable and accrued liabilities | 8,734 | 6,202 | |
Long-term debt | 8,828 | 8,461 | |
Fair value [Member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Cash and cash equivalents | 46,362 | 14,066 | |
Amounts receivable | 208 | 439 | |
Accounts payable and accrued liabilities | 8,734 | 6,202 | |
Long-term debt | $ 8,828 | $ 8,461 |
Financial instruments (Schedu_2
Financial instruments (Schedule of Contractual Maturities for Long-Term Debt Repayable) (Details) - CAD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Disclosure of financial liabilities [line items] | ||
Accounts payable and other liabilities | $ 9,240 | $ 6,217 |
Long-term debt | 7,734 | $ 8,373 |
Total [Member] | ||
Disclosure of financial liabilities [line items] | ||
Accounts payable and other liabilities | 9,240 | |
Short-term and low value leases | 39 | |
Lease obligation | 1,989 | |
Long-term debt | 16,503 | |
Financial liabilities | 27,771 | |
Year 1 [Member] | ||
Disclosure of financial liabilities [line items] | ||
Accounts payable and other liabilities | 9,240 | |
Short-term and low value leases | 18 | |
Lease obligation | 282 | |
Long-term debt | 1,253 | |
Financial liabilities | 10,793 | |
Years 2 to 3 [Member] | ||
Disclosure of financial liabilities [line items] | ||
Accounts payable and other liabilities | ||
Short-term and low value leases | 21 | |
Lease obligation | 578 | |
Long-term debt | 2,372 | |
Financial liabilities | 2,971 | |
Years 4 to 5 [Member] | ||
Disclosure of financial liabilities [line items] | ||
Accounts payable and other liabilities | ||
Short-term and low value leases | ||
Lease obligation | 542 | |
Long-term debt | 2,153 | |
Financial liabilities | 2,695 | |
After 5 years [Member] | ||
Disclosure of financial liabilities [line items] | ||
Accounts payable and other liabilities | ||
Short-term and low value leases | ||
Lease obligation | 587 | |
Long-term debt | 10,725 | |
Financial liabilities | $ 11,312 |
Expenses by nature (Schedule of
Expenses by nature (Schedule of Expenses by Nature) (Details) - CAD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Expenses | ||
Salaries, wages and benefits | $ 9,371 | $ 7,831 |
Research and development expenditures, including clinical costs | 19,989 | 13,594 |
Professional and consulting fees | 2,488 | 1,779 |
Travel | 66 | 680 |
Office, rent and telecommunications | 760 | 684 |
Insurance | 3,551 | 800 |
Marketing, communications and investor relations | 1,579 | 1,675 |
Depreciation | 515 | 527 |
Stock-based compensation (non-cash) | 1,005 | 1,138 |
DSU compensation (non-cash) | 537 | (191) |
Other | 690 | 693 |
Foreign exchange loss (gain) | 1,259 | (84) |
Accreted interest and valuation adjustments | 36 | 1,239 |
Research and development tax credits | (1,699) | (1,571) |
Government assistance | (4,991) | (861) |
Total Expenses | $ 35,156 | $ 27,933 |
Compensation of key managemen_2
Compensation of key management (Schedule of Compensation Awarded to Key Management) (Details) - CAD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Disclosure of amounts incurred by entity for provision of key management personnel services provided by separate management entities [abstract] | ||
Salaries and other benefits | $ 2,306 | $ 1,970 |
Stock-based compensation (non-cash) | 1,288 | 1,290 |
Total | $ 3,594 | $ 3,260 |